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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Title of each class
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Trading Symbol
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Name of each exchange on which registered
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☑
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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Emerging growth company
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Page
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Part I — Financial Information
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Part II — Other Information
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Defaults Upon Senior Securities
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*
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Item 4.
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Mine Safety Disclosures
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*
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Item 5.
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Other Information
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*
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Item 6.
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*
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No response to this item is included herein for the reason that it is inapplicable or the answer to such item is negative.
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•
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general economic, business and market conditions;
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•
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our ability to source and procure needed materials, components and other products and services in accordance with customer demand and at competitive prices;
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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;
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changes in consumer demand, prices and our ability to have our products included on top selling vehicles, including any shifts in consumer preferences away from historically higher margin products for our customers and us, to other lower margin vehicles, for which we may or may not have supply arrangements, and the cyclical nature of the global vehicle industry, including the performance of the global aftermarket sector;
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•
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changes in consumer demand for our original equipment products or aftermarket products, or changes in automotive and commercial vehicle manufacturers’ production rates and their actual and forecasted requirements for our products, due to difficult economic conditions and/or regulatory or legal changes affecting internal combustion engines and/or aftermarket products;
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•
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our dependence on certain large customers, including the loss of any of our large original equipment manufacturer 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 customers or any change in customer demand due to delays in the adoption or enforcement of worldwide emissions regulations;
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new technologies that reduce the demand for certain of our products or otherwise render them obsolete;
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our ability to introduce new products and technologies that satisfy customers' needs in a timely fashion;
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the overall highly competitive nature of the automotive and commercial vehicle parts industries, and any resultant inability to realize the sales represented by our awarded book of business (which is based on anticipated pricing and volumes over the life of the applicable program);
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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;
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our ability to comply with the covenants contained in our debt instruments;
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our working capital requirements;
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our ability to successfully execute cash management and other cost reduction plans, and to realize the anticipated benefits from these plans;
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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;
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increasing competition from lower cost, private-label products;
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damage to the reputation of one or more of our leading brands;
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•
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the effect of improvements in automotive parts on aftermarket demand for some of our products;
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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;
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developments relating to our intellectual property, including our ability to adapt to changes in technology;
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costs related to product warranties and other customer satisfaction actions;
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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 such failure or breach may cause;
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the effect of consolidation among vehicle parts suppliers and customers on our ability to compete in the highly competitive automotive and commercial vehicle supplier industry;
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changes in distribution channels or competitive conditions in the markets and countries where we operate;
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the evolution towards autonomous vehicles, and car and ride sharing;
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customer acceptance of new products;
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our ability to successfully integrate, and benefit from, any acquisitions we complete;
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our ability to effectively manage our joint ventures and other third-party relationships;
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the potential impairment in the carrying value of our long-lived assets, goodwill, or indefinite-lived intangible assets or our inability to realize our deferred tax assets;
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the negative effect of fuel price volatility on transportation and logistics costs, raw material costs, discretionary purchases of vehicles or aftermarket products, and demand for off-highway equipment;
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increases in the costs of raw materials or components, including our ability to successfully reduce the effect of any such cost increases through materials substitutions, cost reduction initiatives, customer recovery, and other methods;
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changes by the Financial Accounting Standards Board or the Securities and Exchange Commission of authoritative generally accepted accounting principles or policies;
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changes in accounting estimates and assumptions, including changes based on additional information;
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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;
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the effect of the extensive, increasing, and changing laws and regulations to which we are subject, including environmental laws and regulations, which may result in our incurrence of environmental liabilities in excess of the amount reserved or increased costs or loss of revenues relating to products subject to changing regulation;
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•
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potential volatility in our effective tax rate;
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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;
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acts of war and/or terrorism, as well as actions taken or to be taken by the United States and other governments as a result of further acts or threats of terrorism, and the effect of these acts on economic, financial, and social conditions in the countries where we operate;
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pension obligations and other postretirement benefits;
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our hedging activities to address commodity price fluctuations; and
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the timing and occurrence (or non-occurrence) of other transactions, events and circumstances which may be beyond our control.
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the risk the Company may not complete a separation of its powertrain technology business and its aftermarket and ride performance business (or achieve some or all of the anticipated benefits of the separation);
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the risk the combined company and each separate company following the separation will underperform relative to our expectations;
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the ongoing transaction costs and risk we may incur greater costs following separation of the business;
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the risk the spin-off is determined to be a taxable transaction;
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the risk the benefits of the acquisition of Federal-Mogul, including synergies, may not be fully realized or may take longer to realize than expected;
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the risk the acquisition of Federal-Mogul may not advance our business strategy;
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the risk we may experience difficulty integrating or separating employees or operations; and
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•
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the risk the transaction may have an adverse effect on existing arrangements with us, including those related to transition, manufacturing and supply services, and tax matters; our ability to retain and hire key personnel; or our ability to maintain relationships with customers, suppliers or other business partners.
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
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2019
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2018
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2019
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2018
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Revenues
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||||||||
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Net sales and operating revenues
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$
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$
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$
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$
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||||||||
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Costs and expenses
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Cost of sales
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Selling, general, and administrative
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Depreciation and amortization
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Engineering, research, and development
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Restructuring charges, asset impairments, and other
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Goodwill impairment charge
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Other expense (income)
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Non-service pension and other postretirement benefit costs (credits)
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Equity in (earnings) losses of nonconsolidated affiliates, net of tax
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(
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)
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(
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)
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||||
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Other expense (income), net
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(
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)
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(
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)
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||||
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(
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)
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(
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)
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||||
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Earnings (loss) before interest expense, income taxes, and noncontrolling interests
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||||
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Interest expense
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||||
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Earnings (loss) before income taxes and noncontrolling interests
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||||
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Income tax expense (benefit)
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(
|
)
|
|
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|
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|
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|
||||
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Net income (loss)
|
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|
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||||
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Less: Net income (loss) attributable to noncontrolling interests
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|
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|
||||
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Net income (loss) attributable to Tenneco Inc.
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
Earnings (loss) per share
|
|
|
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|
|
|
||||||||
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Basic earnings (loss) per share:
|
|
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||||||||
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Earnings (loss) per share
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
Weighted average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Diluted earnings (loss) per share:
|
|
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||||||||
|
Earnings (loss) per share
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
Weighted average shares outstanding
|
|
|
|
|
|
|
|
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|
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|
||||
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|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Net income (loss)
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
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||||||||
|
Foreign currency translation adjustment
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
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Cash flow hedges
|
|
|
|
|
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|
||||
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Defined benefit plans
|
|
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|
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|
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|
||||
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
|
Comprehensive income (loss)
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
||||
|
Less: Comprehensive income (loss) attributable to noncontrolling interests
|
(
|
)
|
|
|
|
|
|
|
|
|
|
||||
|
Comprehensive income (loss) attributable to common shareholders
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
|
ASSETS
|
|||||||
|
Current assets:
|
|
|
|
||||
|
Cash and cash equivalents
|
$
|
|
|
|
$
|
|
|
|
Restricted cash
|
|
|
|
|
|
||
|
Receivables:
|
|
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|
||||
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Customer notes and accounts, net
|
|
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|
||
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Other
|
|
|
|
|
|
||
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Inventories
|
|
|
|
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|
||
|
Prepayments and other current assets
|
|
|
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|
||
|
Total current assets
|
|
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|
|
|
||
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Property, plant and equipment, net
|
|
|
|
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|
||
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Long-term receivables, net
|
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||
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Goodwill
|
|
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|
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||
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Intangibles, net
|
|
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||
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Investments in nonconsolidated affiliates
|
|
|
|
|
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||
|
Deferred income taxes
|
|
|
|
|
|
||
|
Other assets
|
|
|
|
|
|
||
|
Total assets
|
$
|
|
|
|
$
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|||||||
|
Current liabilities:
|
|
|
|
||||
|
Short-term debt, including current maturities of long-term debt
|
$
|
|
|
|
$
|
|
|
|
Accounts payable
|
|
|
|
|
|
||
|
Accrued compensation and employee benefits
|
|
|
|
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|
||
|
Accrued income taxes
|
|
|
|
|
|
||
|
Accrued expenses and other current liabilities
|
|
|
|
|
|
||
|
Total current liabilities
|
|
|
|
|
|
||
|
Long-term debt
|
|
|
|
|
|
||
|
Deferred income taxes
|
|
|
|
|
|
||
|
Pension and postretirement benefits
|
|
|
|
|
|
||
|
Deferred credits and other liabilities
|
|
|
|
|
|
||
|
Commitments and contingencies (Note 13)
|
|
|
|
|
|
||
|
Total liabilities
|
|
|
|
|
|
||
|
Redeemable noncontrolling interests
|
|
|
|
|
|
||
|
Tenneco Inc. shareholders’ equity:
|
|
|
|
||||
|
Preferred stock — $0.01 par value; none issued
|
|
|
|
|
|
||
|
Class A voting stock — $0.01 par value; shares issued: September 30, 2019 — 71,719,614 and December 31, 2018 — 71,675,379
|
|
|
|
|
|
||
|
Class B non-voting convertible stock — $0.01 par value; shares issued: September 30, 2019 — 23,793,669 and December 31, 2018 — 23,793,669
|
|
|
|
|
|
||
|
Additional paid-in capital
|
|
|
|
|
|
||
|
Accumulated other comprehensive loss
|
(
|
)
|
|
(
|
)
|
||
|
Accumulated deficit
|
(
|
)
|
|
(
|
)
|
||
|
|
|
|
|
|
|
||
|
Shares held as treasury stock — at cost: September 30, 2019 and December 31, 2018 — 14,592,888 shares
|
(
|
)
|
|
(
|
)
|
||
|
Total Tenneco Inc. shareholders’ equity
|
|
|
|
|
|
||
|
Noncontrolling interests
|
|
|
|
|
|
||
|
Total equity
|
|
|
|
|
|
||
|
Total liabilities, redeemable noncontrolling interests and equity
|
$
|
|
|
|
$
|
|
|
|
|
Nine Months Ended
September 30, |
||||||
|
|
2019
|
|
2018
|
||||
|
Operating Activities
|
|
|
|
||||
|
Net income (loss)
|
$
|
|
|
|
$
|
|
|
|
Adjustments to reconcile net income (loss) to cash provided (used) by operating activities:
|
|
|
|
||||
|
Goodwill impairment charge
|
|
|
|
|
|
||
|
Depreciation and amortization
|
|
|
|
|
|
||
|
Deferred income taxes
|
(
|
)
|
|
(
|
)
|
||
|
Stock-based compensation
|
|
|
|
|
|
||
|
Restructuring charges, asset impairments, and other, net of cash paid
|
|
|
|
|
|
||
|
Change in pension and other postretirement benefit plans
|
(
|
)
|
|
|
|
||
|
Equity in earnings of nonconsolidated affiliates
|
(
|
)
|
|
|
|
||
|
Cash dividends received from nonconsolidated affiliates
|
|
|
|
|
|
||
|
Changes in operating assets and liabilities:
|
|
|
|
||||
|
Receivables
|
(
|
)
|
|
(
|
)
|
||
|
Inventories
|
|
|
|
(
|
)
|
||
|
Payables and accrued expenses
|
|
|
|
|
|
||
|
Accrued interest and accrued income taxes
|
(
|
)
|
|
(
|
)
|
||
|
Other assets and liabilities
|
(
|
)
|
|
(
|
)
|
||
|
Net cash provided (used) by operating activities
|
|
|
|
|
|
||
|
Investing Activities
|
|
|
|
||||
|
Proceeds from sale of assets
|
|
|
|
|
|
||
|
Net proceeds from sale of business
|
|
|
|
|
|
||
|
Cash payments for property, plant, and equipment
|
(
|
)
|
|
(
|
)
|
||
|
Acquisition of business, net of cash acquired
|
(
|
)
|
|
|
|
||
|
Proceeds from deferred purchase price of factored receivables
|
|
|
|
|
|
||
|
Other
|
|
|
|
(
|
)
|
||
|
Net cash used by investing activities
|
(
|
)
|
|
(
|
)
|
||
|
Financing Activities
|
|
|
|
||||
|
Proceeds from term loans and notes
|
|
|
|
|
|
||
|
Repayments of term loans and notes
|
(
|
)
|
|
(
|
)
|
||
|
Borrowings on revolving lines of credit
|
|
|
|
|
|
||
|
Payments on revolving lines of credit
|
(
|
)
|
|
(
|
)
|
||
|
Issuance (repurchase) of common shares
|
(
|
)
|
|
(
|
)
|
||
|
Cash dividends
|
(
|
)
|
|
(
|
)
|
||
|
Net increase (decrease) in bank overdrafts
|
(
|
)
|
|
(
|
)
|
||
|
Net increase (decrease) in short-term borrowings secured by accounts receivable
|
(
|
)
|
|
|
|
||
|
Other
|
|
|
|
(
|
)
|
||
|
Distributions to noncontrolling interest partners
|
(
|
)
|
|
(
|
)
|
||
|
Net cash provided (used) by financing activities
|
|
|
|
|
|
||
|
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash
|
|
|
|
(
|
)
|
||
|
Decrease in cash, cash equivalents and restricted cash
|
(
|
)
|
|
(
|
)
|
||
|
Cash, cash equivalents and restricted cash, beginning of period
|
|
|
|
|
|
||
|
Cash, cash equivalents and restricted cash, end of period
|
$
|
|
|
|
$
|
|
|
|
Supplemental Cash Flow Information
|
|
|
|
||||
|
Cash paid during the period for interest
|
$
|
|
|
|
$
|
|
|
|
Cash paid during the period for income taxes, net of refunds
|
$
|
|
|
|
$
|
|
|
|
Non-cash Investing Activities
|
|
|
|
||||
|
Period end balance of accounts payable for property, plant, and equipment
|
$
|
|
|
|
$
|
|
|
|
Deferred purchase price of receivables factored in the period
|
$
|
|
|
|
$
|
|
|
|
|
Tenneco Inc. Shareholders' equity
|
|
|
||||||||||||||||||||||||||||
|
|
$0.01 Par Value Common Stock
|
|
Treasury Stock
|
|
Additional Paid-In Capital
|
|
Accumulated Deficit
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total Tenneco Inc. Shareholders' Equity
|
|
Noncontrolling Interests
|
|
Total Equity
|
||||||||||||||||
|
Balance as of December 31, 2018
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Net income (loss)
|
|
|
|
|
|
|
(
|
)
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
||||||||||||
|
Other comprehensive income (loss)—net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Foreign currency translation adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
||||||||||||
|
Defined benefit plans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
||||||||||||
|
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||||||||||
|
Stock-based compensation, net
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
||||||||
|
Cash dividends ($0.25 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
||||||||
|
Purchase accounting measurement period adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
(
|
)
|
||||||||
|
Distributions declared to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
(
|
)
|
||||||||
|
Balance as of March 31, 2019
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Other comprehensive income (loss)—net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Foreign currency translation adjustments
|
|
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
||||||||||||
|
Derivatives
|
|
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
||||||||||||
|
Defined benefit plans
|
|
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
||||||||||||
|
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Stock-based compensation, net
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
||||||||
|
Distributions declared to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
(
|
)
|
||||||||
|
Balance as of June 30, 2019
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Other comprehensive income (loss)—net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Foreign currency translation adjustments
|
|
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||||||||||
|
Derivatives
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||||||
|
Defined benefit plans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
||||||||||||
|
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||
|
Acquisition and other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
(
|
)
|
||||||||
|
Stock-based compensation, net
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
||||||||
|
Purchase accounting measurement period adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
(
|
)
|
||||||||
|
Balance as of September 30, 2019
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Tenneco Inc. Shareholders' equity
|
|
|
||||||||||||||||||||||||||||
|
|
$0.01 Par Value Common Stock
|
|
Treasury Stock
|
|
Additional Paid-In Capital
|
|
Accumulated Deficit
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total Tenneco Inc. Shareholders' Equity
|
|
Noncontrolling Interests
|
|
Total Equity
|
||||||||||||||||
|
Balance as of December 31, 2017
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Net Income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Other comprehensive income (loss)—net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Foreign currency translation adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Defined benefit plans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
||||||||||||
|
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Adjustments to adopt new accounting standards
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
||||||||
|
Stock-based compensation, net
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
||||||||
|
Cash dividends ($0.25 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
||||||||
|
Balance as of March 31, 2018
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net Income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Other comprehensive income (loss)—net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Foreign currency translation adjustments
|
|
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||||||||||
|
Defined benefit plans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
||||||||||||
|
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||||||||||
|
Stock-based compensation, net
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
||||||||
|
Cash dividends ($0.25 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
||||||||
|
Distributions declared to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
(
|
)
|
||||||||
|
Balance as of June 30, 2018
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net Income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Other comprehensive income (loss)—net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Foreign currency translation adjustments
|
|
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||||||||||
|
Defined benefit plans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
||||||||||||
|
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Adjustments to adopt new accounting standards
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|||||||||||
|
Stock-based compensation, net
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
||||||||
|
Cash dividends ($0.25 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
||||||||
|
Distributions declared to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
(
|
)
|
||||||||
|
Balance as of September 30, 2018
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
|
Balance at beginning of period
|
$
|
|
|
|
$
|
|
|
|
Net income (loss) attributable to redeemable noncontrolling interests
|
|
|
|
|
|
||
|
Other comprehensive income (loss)
|
(
|
)
|
|
(
|
)
|
||
|
Acquisition and other
|
|
|
|
|
|
||
|
Purchase accounting measurement period adjustment
|
(
|
)
|
|
|
|
||
|
Dividends declared
|
(
|
)
|
|
(
|
)
|
||
|
Balance at end of period
|
$
|
|
|
|
$
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
Weighted average shares of common stock outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||
|
Restricted stock, PSUs and RSUs
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock options
|
|
|
|
|
|
|
|
|
|
|
|
|
Dilutive shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||
|
|
As Reported
|
|
Reclasses
|
|
As Reclassified
|
|
Revisions
|
|
As Revised
|
||||||||||
|
Condensed consolidated statement of income (loss)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net sales and operating revenues
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
Costs and expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cost of sales
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|||||
|
Selling, general, and administrative
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|||||
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Engineering, research, and development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Restructuring charges, asset impairments, and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Other expense (income)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Loss on sale of receivables
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|||||
|
Non-service pension and other postretirement benefit costs (credits)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Other expense (income), net
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Earnings (loss) before interest expense, income taxes, and noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Earnings (loss) before income taxes and noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Income tax expense (benefit)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Net income (loss) attributable to Tenneco Inc.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Earnings (loss) per share
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Basic earnings (loss) per share of common stock
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Diluted earnings (loss) per share of common stock
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||
|
|
As Reported
|
|
Reclasses
|
|
As Reclassified
|
|
Revisions
|
|
As Revised
|
||||||||||
|
Condensed consolidated statement of comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net income (loss)
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Other comprehensive income (loss)—net of tax
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Foreign currency translation adjustment
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||
|
Defined benefit plans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||
|
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Less: Comprehensive income (loss) attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Comprehensive income (loss) attributable to common shareholders
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||
|
|
As Reported
|
|
Reclasses
|
|
As Reclassified
|
|
Revisions
|
|
As Revised
|
||||||||||
|
Condensed consolidated statement of income (loss)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net sales and operating revenues
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Costs and expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cost of sales
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|||||
|
Selling, general, and administrative
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|||||
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Engineering, research, and development
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|||||
|
Restructuring charges, asset impairments, and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Other expense (income)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Loss on sale of receivables
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|||||
|
Non-service pension and other postretirement benefit costs (credits)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Other expense (income), net
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Earnings (loss) before interest expense, income taxes, and noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Earnings (loss) before income taxes and noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Income tax expense (benefit)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Net income (loss) attributable to Tenneco Inc.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Earnings (loss) per share
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Basic earnings (loss) per share of common stock
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Diluted earnings (loss) per share of common stock
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||
|
|
As Reported
|
|
Reclasses
|
|
As Reclassified
|
|
Revisions
|
|
As Revised
|
||||||||||
|
Condensed consolidated statement of comprehensive income (loss)
|
|
||||||||||||||||||
|
Net income (loss)
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Other comprehensive income (loss)—net of tax
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Foreign currency translation adjustment
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||
|
Defined benefit plans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||
|
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Less: Comprehensive income (loss) attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Comprehensive income (loss) attributable to common shareholders
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||
|
|
|
As Reported
|
|
Reclasses
|
|
As Reclassified
|
|
Revisions
|
|
As Revised
|
||||||||||
|
Condensed consolidated statements of cash flow
|
|
|
||||||||||||||||||
|
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net income (loss)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Net cash provided by (used by) operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net cash used by investing activities
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Proceeds from term loans and notes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Repayments of term loans and notes
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||
|
Retirement of long-term debt
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Borrowings on revolving lines of credit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Payments on revolving lines of credit
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|||||
|
Net increase (decrease) in revolver borrowings
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|||||
|
Issuance (repurchase) of common shares
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||
|
Cash dividends
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||
|
Debt issuance cost of long-term debt
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Purchase of common stock under the share repurchase program
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Net increase (decrease) in bank overdrafts
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||
|
Net increase (decrease) in short-term borrowings secured by accounts receivable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Other
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||
|
Distributions to noncontrolling interest partners
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||
|
Net cash provided by (used by) financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||
|
Increase (decrease) in cash, cash equivalents and restricted cash
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||
|
Cash, cash equivalents and restricted cash, beginning of period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Cash, cash equivalents and restricted cash, end of period
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
Three Months Ended September 30, 2018
|
||||||||||
|
|
|
As Reported
|
|
Revisions
|
|
As Revised
|
||||||
|
Condensed consolidated statements of changes in shareholders' equity
|
|
|
||||||||||
|
Accumulated Deficit
|
|
|
|
|
|
|
||||||
|
Balance June 30
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
Net income (loss) attributable to Tenneco Inc.
|
|
|
|
|
|
|
|
|
|
|||
|
Cash dividends declared
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||
|
Adjustments to adopt new accounting standards
|
|
—
|
|
|
|
|
|
|
|
|||
|
Balance September 30
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
Accumulated Other Comprehensive Income (loss)
|
|
|
|
|
|
|
||||||
|
Balance June 30
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
Other comprehensive income (loss)—net of tax:
|
|
|
|
|
|
|
||||||
|
Foreign currency translation adjustment
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||
|
Defined benefit plans
|
|
|
|
|
—
|
|
|
|
|
|||
|
Balance September 30
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
Total Tenneco Inc. Shareholders' Equity
|
|
|
|
|
|
|
||||||
|
Balance June 30
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
Net income (loss) attributable to Tenneco Inc.
|
|
|
|
|
|
|
|
|
|
|||
|
Other comprehensive income (loss)—net of tax:
|
|
|
|
|
|
|
||||||
|
Foreign currency translation adjustment
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||
|
Defined benefit plans
|
|
|
|
|
—
|
|
|
|
|
|||
|
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|||
|
Adjustments to adopt new accounting standards
|
|
—
|
|
|
|
|
|
|
|
|||
|
Cash dividends declared
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||
|
Stock-based compensation, net
|
|
|
|
|
—
|
|
|
|
|
|||
|
Balance September 30
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
Total Equity
|
|
|
|
|
|
|
||||||
|
Balance June 30
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|||
|
Other comprehensive income (loss)—net of tax:
|
|
|
|
|
|
|
||||||
|
Foreign currency translation adjustment
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||
|
Defined benefit plans
|
|
|
|
|
—
|
|
|
|
|
|||
|
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|||
|
Adjustments to adopt new accounting standards
|
|
—
|
|
|
|
|
|
|
|
|||
|
Cash dividends declared
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||
|
Distributions declared to noncontrolling interests
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||
|
Stock-based compensation, net
|
|
|
|
|
—
|
|
|
|
|
|||
|
Balance September 30
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||
|
|
|
As Reported
|
|
Revisions
|
|
As Revised
|
||||||
|
Condensed consolidated statements of changes in shareholders' equity
|
|
|
||||||||||
|
Accumulated Deficit
|
|
|
|
|
|
|
||||||
|
Balance January 1
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
Net income (loss) attributable to Tenneco Inc.
|
|
|
|
|
|
|
|
|
|
|||
|
Cash dividends declared
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||
|
Adjustments to adopt new accounting standards
|
|
(
|
)
|
|
|
|
|
—
|
|
|||
|
Balance September 30
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
Accumulated Other Comprehensive Income (loss)
|
|
|
|
|
|
|
||||||
|
Balance January 1
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
Other comprehensive income (loss)—net of tax:
|
|
|
|
|
|
|
||||||
|
Foreign currency translation adjustment
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||
|
Defined benefit plans
|
|
|
|
|
—
|
|
|
|
|
|||
|
Balance September 30
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
Total Tenneco Inc. Shareholders' Equity
|
|
|
|
|
|
|
||||||
|
Balance January 1
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
Net income (loss) attributable to Tenneco Inc.
|
|
|
|
|
|
|
|
|
|
|||
|
Other comprehensive income (loss)—net of tax:
|
|
|
|
|
|
|
||||||
|
Foreign currency translation adjustment
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||
|
Defined benefit plans
|
|
|
|
|
—
|
|
|
|
|
|||
|
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|||
|
Adjustments to adopt new accounting standards
|
|
(
|
)
|
|
|
|
|
—
|
|
|||
|
Cash dividends declared
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||
|
Stock-based compensation, net
|
|
|
|
|
—
|
|
|
|
|
|||
|
Balance September 30
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
Total Equity
|
|
|
|
|
|
|
||||||
|
Balance January 1
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|||
|
Other comprehensive income (loss)—net of tax:
|
|
|
|
|
|
|
||||||
|
Foreign currency translation adjustment
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||
|
Defined benefit plans
|
|
|
|
|
—
|
|
|
|
|
|||
|
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|||
|
Adjustments to adopt new accounting standards
|
|
(
|
)
|
|
|
|
|
—
|
|
|||
|
Cash dividends declared
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||
|
Distributions declared to noncontrolling interests
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||
|
Stock-based compensation, net
|
|
|
|
|
—
|
|
|
|
|
|||
|
Balance September 30
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
|
Initial Allocation
|
|
Adjustments
|
|
Revised Allocation
|
||||||
|
Cash, cash equivalents and restricted cash
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Customer notes and accounts receivable
|
|
|
|
|
|
|
|
|
|||
|
Inventories
|
|
|
|
|
|
|
|
|
|||
|
Prepayments and other current assets
|
|
|
|
|
|
|
|
|
|||
|
Property, plant, and equipment
|
|
|
|
|
|
|
|
|
|||
|
Goodwill
|
|
|
|
|
|
|
|
|
|||
|
Intangibles
|
|
|
|
(
|
)
|
|
|
|
|||
|
Other assets
|
|
|
|
|
|
|
|
|
|||
|
Total assets acquired
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
||||||
|
Short-term debt, including current maturities of long-term debt
|
|
|
|
|
|
|
|
|
|||
|
Accounts payable
|
|
|
|
|
|
|
|
|
|||
|
Accrued compensation and employee benefits
|
|
|
|
|
|
|
|
|
|||
|
Deferred income taxes
|
|
|
|
|
|
|
|
|
|||
|
Deferred credits and other liabilities
|
|
|
|
|
|
|
|
|
|||
|
Total liabilities assumed
|
|
|
|
|
|
|
|
|
|||
|
Redeemable noncontrolling interest
|
|
|
|
|
|
|
|
|
|||
|
Net assets acquired
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Estimated Fair Value
|
|
Weighted-Average Useful Lives
|
||
|
Definite-lived intangible assets:
|
|
|
|
||
|
Customer platforms and relationships
|
$
|
|
|
|
|
|
Technology rights
|
|
|
|
|
|
|
Total definite-lived intangible assets
|
|
|
|
|
|
|
|
|
|
|
||
|
Indefinite-lived intangible assets:
|
|
|
|
||
|
Trade names and trademarks
|
|
|
|
|
|
|
Total
|
$
|
|
|
|
|
|
|
Initial Allocation
|
|
Adjustments
|
|
Final Allocation
|
||||||
|
Cash, cash equivalents and restricted cash
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Customer notes and accounts receivable
|
|
|
|
(
|
)
|
|
|
|
|||
|
Other receivables
|
|
|
|
|
|
|
|
|
|||
|
Inventories
|
|
|
|
(
|
)
|
|
|
|
|||
|
Prepayments and other current assets
|
|
|
|
|
|
|
|
|
|||
|
Property, plant and equipment
|
|
|
|
(
|
)
|
|
|
|
|||
|
Long-term receivables
|
|
|
|
|
|
|
|
|
|||
|
Goodwill
|
|
|
|
(
|
)
|
|
|
|
|||
|
Intangibles
|
|
|
|
|
|
|
|
|
|||
|
Investments in nonconsolidated affiliates
|
|
|
|
(
|
)
|
|
|
|
|||
|
Deferred income taxes
|
|
|
|
|
|
|
|
|
|||
|
Other assets
|
|
|
|
(
|
)
|
|
|
|
|||
|
Total assets acquired
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
||||||
|
Short-term debt, including current maturities of long-term debt
|
|
|
|
|
|
|
|
|
|||
|
Accounts payable
|
|
|
|
|
|
|
|
|
|||
|
Accrued compensation and employee benefits
|
|
|
|
|
|
|
|
|
|||
|
Accrued income taxes
|
|
|
|
|
|
|
|
|
|||
|
Accrued expenses and other current liabilities
|
|
|
|
(
|
)
|
|
|
|
|||
|
Long-term debt
|
|
|
|
|
|
|
|
|
|||
|
Deferred income taxes
|
|
|
|
|
|
|
|
|
|||
|
Pension and postretirement benefits
|
|
|
|
|
|
|
|
|
|||
|
Deferred credits and other liabilities
|
|
|
|
(
|
)
|
|
|
|
|||
|
Total liabilities assumed
|
|
|
|
|
|
|
|
|
|||
|
Redeemable noncontrolling interests
|
|
|
|
(
|
)
|
|
|
|
|||
|
Noncontrolling interests
|
|
|
|
(
|
)
|
|
|
|
|||
|
Net assets and noncontrolling interests acquired
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Estimated Fair Value
|
|
Weighted-Average Useful Lives
|
||
|
Definite-lived intangible assets:
|
|
|
|
||
|
Customer platforms and relationships
|
$
|
|
|
|
|
|
Technology rights
|
|
|
|
|
|
|
Packaged kits know-how
|
|
|
|
|
|
|
Catalogs
|
|
|
|
|
|
|
Licensing agreements
|
|
|
|
|
|
|
Land use rights
|
|
|
|
|
|
|
Total definite-lived intangible assets
|
|
|
|
|
|
|
|
|
|
|
||
|
Indefinite-lived intangible assets:
|
|
|
|
||
|
Trade names and trademarks
|
|
|
|
|
|
|
Total
|
$
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Net sales and operating revenues
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Earnings (loss) before income taxes and noncontrolling interests
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Net income (loss) attributable to Tenneco Inc.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Basic earnings (loss) per share of common stock
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Diluted earnings (loss) per share of common stock
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
|
Assets
|
|
|
|
||||
|
Receivables
|
$
|
|
|
|
$
|
|
|
|
Inventories
|
|
|
|
|
|
||
|
Other current assets
|
|
|
|
|
|
||
|
Long-lived assets
|
|
|
|
|
|
||
|
Goodwill
|
|
|
|
|
|
||
|
Impairment on carrying value
|
(
|
)
|
|
|
|
||
|
Total assets held for sale
|
$
|
|
|
|
$
|
|
|
|
Liabilities
|
|
|
|
||||
|
Accounts payable
|
$
|
|
|
|
$
|
|
|
|
Accrued liabilities
|
|
|
|
|
|
||
|
Other liabilities
|
|
|
|
|
|
||
|
Total liabilities held for sale
|
$
|
|
|
|
$
|
|
|
|
|
Three Months Ended September 30, 2019
|
||||||||||||||||||||||
|
|
Clean Air
|
|
Powertrain
|
|
Ride Performance
(1)
|
|
Motorparts
|
|
Corporate
|
|
Total
|
||||||||||||
|
Severance and other charges, net
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Impairment of assets held for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Total restructuring charges, asset impairments, and other
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
(1)
The Ride Performance segment includes $10 million of other charges for the three months ended September 30, 2019.
|
|||||||||||||||||||||||
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||||||
|
|
Clean Air
|
|
Powertrain
|
|
Ride Performance
|
|
Motorparts
|
|
Corporate
|
|
Total
|
||||||||||||
|
Severance and other charges, net
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Other non-restructuring asset impairments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Total restructuring charges, asset impairments, and other
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||||||
|
|
Clean Air
|
|
Powertrain
|
|
Ride Performance
(2)
|
|
Motorparts
|
|
Corporate
|
|
Total
|
||||||||||||
|
Severance and other charges, net
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Other non-restructuring asset impairments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Impairment of assets held for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Total asset impairment charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Total restructuring charges, asset impairments, and other
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
(1)
The Ride Performance segment includes $8 million, $20 million, and $30 million of other charges for the three months ended March 31, 2019, six months ended June 30, and for the nine months ended September 30, 2019.
|
|||||||||||||||||||||||
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||
|
|
Clean Air
|
|
Powertrain
|
|
Ride Performance
|
|
Motorparts
|
|
Corporate
|
|
Total
|
||||||||||||
|
Severance and other charges, net
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Other non-restructuring asset impairments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Total restructuring charges, asset impairments, and other
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Reportable Segments
|
|
|
|
|
||||||||||||||||||||||
|
|
Clean Air
|
|
Powertrain
|
|
Ride Performance
(1)
|
|
Motorparts
|
|
Total Reportable Segments
|
|
Corporate
|
|
Total
|
||||||||||||||
|
Balance as of December 31, 2018
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Provisions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Payments
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||
|
Balance as of March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Provisions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Revisions to estimates
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||||
|
Payments
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||
|
Balance as of June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Provisions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Revisions to estimates
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||||
|
Payments
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||
|
Foreign currency
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||||
|
Balance as of September 30, 2019
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
(1)
The Ride Performance segment includes $8 million, $12 million, and $10 million of other charges and payments in each of the three months ended March 31, 2019, June 30, 2019, and September 30, 2019.
|
|||||||||||||||||||||||||||
|
|
Reportable Segments
|
|
|
|
|
||||||||||||||||||||||
|
|
Clean Air
|
|
Powertrain
|
|
Ride Performance
|
|
Motorparts
|
|
Total Reportable Segments
|
|
Corporate
|
|
Total
|
||||||||||||||
|
Balance as of December 31, 2017
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Provisions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Payments
|
(
|
)
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||||
|
Balance as of March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Provisions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Payments
|
(
|
)
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||||
|
Balance as of June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Provisions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Payments
|
(
|
)
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||||
|
Foreign currency
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||||
|
Balance as of September 30, 2018
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Employee Costs
|
|
Facility Closure and Other Costs
(1)
|
|
Total
|
||||||
|
Balance as of December 31, 2018
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Provisions
|
|
|
|
|
|
|
|
|
|||
|
Payments
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||
|
Balance as of March 31, 2019
|
|
|
|
|
|
|
|
|
|||
|
Provisions
|
|
|
|
|
|
|
|
|
|||
|
Revisions to estimates
|
(
|
)
|
|
|
|
|
(
|
)
|
|||
|
Payments
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||
|
Balance as of June 30, 2019
|
|
|
|
|
|
|
|
|
|||
|
Provisions
|
|
|
|
|
|
|
|
|
|||
|
Revisions to estimates
|
(
|
)
|
|
|
|
|
(
|
)
|
|||
|
Payments
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||
|
Foreign currency
|
(
|
)
|
|
|
|
|
(
|
)
|
|||
|
Balance as of September 30, 2019
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
(1)
Facility closure and other costs includes $8 million, $12 million, and $10 million of other charges and payments in each of the three months ended March 31, 2019, June 30, 2019, and September 30, 2019 related to the Ride Performance segment.
|
|||||||||||
|
|
Employee Costs
|
|
Facility Closure and Other Costs
|
|
Total
|
||||||
|
Balance as of December 31, 2017
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Provisions
|
|
|
|
|
|
|
|
|
|||
|
Payments
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||
|
Balance as of March 31, 2018
|
|
|
|
|
|
|
|
|
|||
|
Provisions
|
|
|
|
|
|
|
|
|
|||
|
Payments
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||
|
Balance as of June 30, 2018
|
|
|
|
|
|
|
|
|
|||
|
Provisions
|
|
|
|
|
|
|
|
|
|||
|
Payments
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||
|
Foreign currency
|
(
|
)
|
|
|
|
|
(
|
)
|
|||
|
Balance as of September 30, 2018
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
|
Finished goods
|
$
|
|
|
|
$
|
|
|
|
Work in process
|
|
|
|
|
|
||
|
Raw materials
|
|
|
|
|
|
||
|
Materials and supplies
|
|
|
|
|
|
||
|
|
$
|
|
|
|
$
|
|
|
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||
|
|
Clean Air
|
|
Powertrain
|
|
Ride Performance
|
|
Motorparts
|
|
Total
|
||||||||||
|
Gross carrying amount at December 31, 2018
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Measurement period adjustments
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|||||
|
Acquisitions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Gross carrying amount at March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Measurement period adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Gross carrying amount at June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Measurement period adjustments
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|||||
|
Reclassification to assets held for sale
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|||||
|
Foreign exchange
|
(
|
)
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||
|
Gross carrying amount at September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Accumulated impairment loss at December 31, 2018
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||
|
Impairment
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||
|
Accumulated impairment loss at March 31, 2019
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||
|
Impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Accumulated impairment loss at June 30, 2019
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||
|
Impairment
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||
|
Foreign Exchange
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Accumulated impairment loss at September 30, 2019
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net carrying value at end of period
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
•
|
an increase of
$
|
|
•
|
a net decrease of
$
|
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
|
Useful Lives
|
|
Gross Carrying Value
|
|
Accumulated Amortization
|
|
Net Carrying Value
|
|
Gross Carrying Value
|
|
Accumulated Amortization
|
|
Net Carrying Value
|
||||||||||||
|
Definite-lived intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Customer relationships and platforms
|
10 years
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
Customer contract
|
10 years
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
Patents
|
10 to 17 years
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
Technology rights
|
10 to 30 years
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
Packaged kits know-how
|
10 years
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
Catalogs
|
10 years
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Licensing agreements
|
3 to 5 years
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
Land use rights
|
28 to 46 years
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
Indefinite-lived intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Trade names and trademarks
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
||||||
|
Total
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
•
|
a decrease of
$
|
|
•
|
a net increase of
$
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Amortization expense
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024 and thereafter
|
|
Total
|
||||||||||||||
|
Expected amortization expense
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||
|
Anqing TP Goetze Piston Ring Company Limited (China)
|
|
%
|
|
|
%
|
|
Anqing TP Powder Metallurgy Co., Ltd (China)
|
|
%
|
|
|
%
|
|
Dongsuh Federal-Mogul Industrial Co. Ltd. (Korea)
|
|
%
|
|
|
%
|
|
Farloc Argentina SAIC Y F (Argentina)
|
|
%
|
|
|
%
|
|
Federal-Mogul Powertrain Otomotiv A.S. (Turkey)
|
|
%
|
|
|
%
|
|
Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti. (Turkey)
|
|
%
|
|
|
%
|
|
Federal-Mogul TP Liners, Inc. (USA)
|
|
%
|
|
|
%
|
|
Frenos Hidraulicos Automotrices, S.A. de C.V. (Mexico)
|
|
%
|
|
|
%
|
|
JURID do Brasil Sistemas Automotivos Ltda. (Brazil)
|
|
%
|
|
|
%
|
|
KB Autosys Co., Ltd. (Korea)
|
|
%
|
|
|
%
|
|
Montagewerk Abgastechnik Emden GmbH (Germany)
|
|
%
|
|
|
%
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
|
Investments in nonconsolidated affiliates
|
$
|
|
|
|
$
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Equity in earnings (losses) of nonconsolidated affiliates, net of tax
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Cash dividends received from nonconsolidated affiliates
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Three Months Ended September 30, 2019
|
||||||||||||||
|
Statements of Income
|
Otomotiv A.S.
|
|
Anqing TP Goetze
|
|
Other
|
|
Total
|
||||||||
|
Sales
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Gross profit
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Income from continuing operations
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Net income
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||
|
Statements of Income
|
Otomotiv A.S.
|
|
Anqing TP Goetze
|
|
Other
|
|
Total
|
||||||||
|
Sales
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Gross profit
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Income from continuing operations
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Net income
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Notional Amount
|
||
|
Long positions
|
$
|
(
|
)
|
|
Short positions
|
$
|
|
|
|
|
|
|
Carrying Value
|
||||||
|
|
Balance sheet classification
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
|
Commodity price hedge contracts designated as cash flow hedges
|
Accrued expenses and other current liabilities
|
|
$
|
|
|
|
$
|
|
|
|
Foreign currency borrowings designated as net investment hedges
|
Long-term debt
|
|
$
|
|
|
|
$
|
|
|
|
|
|
Amount of gain (loss) recognized in accumulated OCI or OCL (effective portion):
|
||||||
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||
|
|
|
2019
|
|
2019
|
||||
|
Commodity price hedge contracts designated as cash flow hedges
|
|
$
|
(
|
)
|
|
$
|
|
|
|
Foreign currency borrowings designated as net investment hedges
|
|
$
|
|
|
|
$
|
|
|
|
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.
|
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
|
Fair value
hierarchy |
|
Carrying
Amount |
|
Fair
Value |
|
Carrying
Amount |
|
Fair
Value |
||||||||
|
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
||||||||
|
Equity swap agreement
|
Level 2
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
Commodity contracts
|
Level 2
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
|
Fair value
hierarchy |
|
Carrying
Amount |
|
Fair
Value |
|
Carrying
Amount |
|
Fair
Value |
||||||||
|
Long-term debt (including current maturities):
|
|
|
|
|
|
|
|
|
|
||||||||
|
Term loans and senior notes
|
Level 2
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
|
Principal
|
|
Carrying Amount
(1)
|
|
Principal
|
|
Carrying Amount
(1)
|
||||||||
|
Credit Facilities
|
|
|
|
|
|
|
|
||||||||
|
Revolver Borrowings
|
|
|
|
|
|
|
|
||||||||
|
Due 2023
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Term Loans
|
|
|
|
|
|
|
|
||||||||
|
LIBOR plus 1.75% Term Loan A due 2019 through 2023
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
LIBOR plus 3.00% Term Loan B due 2019 through 2025
(2)
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Senior Unsecured Notes
|
|
|
|
|
|
|
|
||||||||
|
$225 million of 5.375% Senior Notes due 2024
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
$500 million of 5.000% Senior Notes due 2026
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Senior Secured Notes
|
|
|
|
|
|
|
|
||||||||
|
€415 million 4.875% Euro Fixed Rate Notes due 2022
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
€300 million of Euribor plus 4.875% Euro Floating Rate Notes due 2024
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
€350 million of 5.000% Euro Fixed Rate Notes due 2024
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Other debt, primarily foreign instruments
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Less - maturities classified as current
|
|
|
|
|
|
|
|
|
|
||||||
|
Total long-term debt
|
|
|
$
|
|
|
|
|
|
$
|
|
|
||||
|
(1)
|
Carrying amount is net of unamortized debt issuance costs and debt discounts or premiums. Total unamortized debt issuance costs were
$
|
|
(2)
|
As of December 31, 2018, the rate on Term Loan B was LIBOR plus
|
|
|
Credit Facilities as of September 30, 2019
|
||||
|
|
Term
|
|
Available
(b)
|
||
|
|
|
|
(in billions)
|
||
|
Tenneco Inc. revolving credit facility
(a)
|
2023
|
|
$
|
|
|
|
Tenneco Inc. Term Loan A
|
2023
|
|
|
|
|
|
Tenneco Inc. Term Loan B
|
2025
|
|
|
|
|
|
Subsidiaries’ credit agreements
|
2020 - 2028
|
|
|
|
|
|
|
|
|
$
|
|
|
|
(a)
|
The Company is required to pay commitment fees under the revolving credit facility on the unused portion of the total commitment.
|
|
(b)
|
Letters of credit reduce the available borrowings under the revolving credit facility, as of
September 30, 2019
the revolving credit facility had
$
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Amortization of debt issuance fees
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
|
Borrowings on securitization programs
|
$
|
|
|
|
$
|
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
|
|
(in billions)
|
||||||
|
Accounts receivable outstanding and derecognized
|
$
|
|
|
|
$
|
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
|
Deferred purchase price receivable
|
$
|
|
|
|
$
|
|
|
|
|
Three months ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in billions)
|
||||||||||||||
|
Proceeds from factoring qualifying as sales
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Three months ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Financing charges on sale of receivables
(a)
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
(a)
Amount is included in "Interest expense" in the condensed consolidated statements of income (loss).
|
|
|
|
|
|||||||||||
|
|
Three Months Ended September 30
|
||||||||||||||||||||||
|
|
Pension
|
|
Other Postretirement Benefits
|
||||||||||||||||||||
|
|
2019
|
|
2018
|
|
|||||||||||||||||||
|
|
US
|
|
Non-U.S.
|
|
US
|
|
Non-U.S.
|
|
2019
|
|
2018
|
||||||||||||
|
Service cost
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Interest cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Expected return on plan assets
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
||||||
|
Net amortization:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Actuarial loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Prior service cost (credit)
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
Net pension and postretirement costs (credits)
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Nine Months Ended September 30
|
||||||||||||||||||||||
|
|
Pension
|
|
Other Postretirement Benefits
|
||||||||||||||||||||
|
|
2019
|
|
2018
|
|
|||||||||||||||||||
|
|
US
|
|
Non-U.S.
|
|
US
|
|
Non-U.S.
|
|
2019
|
|
2018
|
||||||||||||
|
Service cost
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Interest cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Expected return on plan assets
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
||||||
|
Net amortization:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Actuarial loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Prior service cost (credit)
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||
|
Net pension and postretirement costs (credits)
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
|
Accrued expenses and other current liabilities
|
$
|
|
|
|
$
|
|
|
|
Deferred credits and other liabilities
|
|
|
|
|
|
||
|
|
$
|
|
|
|
$
|
|
|
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024 and thereafter
|
||||||||||||
|
Expected payments
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
|
Accrued expenses and other current liabilities
|
$
|
|
|
|
$
|
|
|
|
Deferred credits and other liabilities
|
|
|
|
|
|
||
|
|
$
|
|
|
|
$
|
|
|
|
|
2019
|
|
2018
|
||||
|
Balance as of December 31 of the prior year
|
$
|
|
|
|
$
|
|
|
|
Accruals related to product warranties
|
|
|
|
|
|
||
|
Reductions for payments made
|
(
|
)
|
|
(
|
)
|
||
|
Foreign currency
|
|
|
|
|
|
||
|
Balance as of March 31
|
|
|
|
|
|
||
|
Accruals related to product warranties
|
|
|
|
|
|
||
|
Reductions for payments made
|
(
|
)
|
|
(
|
)
|
||
|
Foreign currency
|
|
|
|
|
|
||
|
Balance as of June 30
|
|
|
|
|
|
||
|
Accruals related to product warranties
|
|
|
|
|
|
||
|
Reductions for payments made
|
(
|
)
|
|
(
|
)
|
||
|
Foreign currency
|
(
|
)
|
|
|
|
||
|
Balance as of September 30
|
$
|
|
|
|
$
|
|
|
|
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
||||
|
Operating lease expense
|
$
|
|
|
|
$
|
|
|
|
Finance lease expense
|
|
|
|
||||
|
Amortization of right-of-use assets
|
|
|
|
|
|
||
|
Short-term lease expense
|
|
|
|
|
|
||
|
Variable lease expense
|
|
|
|
|
|
||
|
Sublease income
|
(
|
)
|
|
(
|
)
|
||
|
Total lease expense
|
$
|
|
|
|
$
|
|
|
|
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
||||
|
Cash paid for amounts included in the measurement of lease liabilities
|
|
|
|
||||
|
Operating cash flows from operating leases
|
$
|
|
|
|
$
|
|
|
|
|
September 30, 2019
|
||
|
Operating leases
|
|
||
|
Operating lease right-of-use assets
(a)
|
$
|
|
|
|
|
|
||
|
Other current liabilities
(b)
|
$
|
|
|
|
Other long-term liabilities
(c)
|
|
|
|
|
Total operating lease liabilities
|
$
|
|
|
|
|
|
||
|
Finance leases
|
|
||
|
Property, plant and equipment, gross
|
$
|
|
|
|
Accumulated depreciation
|
|
|
|
|
Total finance lease right-of-use assets
|
$
|
|
|
|
|
|
||
|
Other current liabilities
(b)
|
$
|
|
|
|
Other long-term liabilities
(c)
|
|
|
|
|
Total finance lease liabilities
|
$
|
|
|
|
|
|
||
|
(a) Included in "Other assets" in the condensed consolidated balance sheets.
|
|
||
|
(b) Included in "Accrued expenses and other current liabilities" in the condensed consolidated balance sheets.
|
|
||
|
(c) Included in "Deferred credits and other liabilities" in the condensed consolidated balance sheets.
|
|
||
|
|
September 30, 2019
|
|||
|
|
Weighted average remaining lease term
|
|
Weighted average discount rate
|
|
|
Operating leases
|
|
|
|
%
|
|
Finance leases
|
|
|
|
%
|
|
Year ending December 31
|
Operating leases
|
|
Finance leases
|
||||
|
2019 (excluding the nine months ended September 30, 2019)
|
$
|
|
|
|
$
|
|
|
|
2020
|
|
|
|
|
|
||
|
2021
|
|
|
|
|
|
||
|
2022
|
|
|
|
|
|
||
|
2023
|
|
|
|
|
|
||
|
Thereafter
|
|
|
|
|
|
||
|
Total future undiscounted lease payments
|
|
|
|
|
|
||
|
Less imputed interest
|
(
|
)
|
|
|
|
||
|
Total reported lease liability
|
$
|
|
|
|
$
|
|
|
|
2019
|
$
|
|
|
|
2020
|
|
|
|
|
2021
|
|
|
|
|
2022
|
|
|
|
|
2023
|
|
|
|
|
Beyond 2023
|
|
|
|
|
|
$
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Cash-settled share-based compensation expense (benefit)
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
Share-settled share-based compensation expense (benefit)
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Restricted Stock
|
|
Share-Settled RSUs
|
|
PSUs
|
|||||||||||||||
|
|
Shares
|
|
Weighted Avg.
Grant Date Fair Value |
|
Units
|
|
Weighted Avg.
Grant Date Fair Value |
|
Units
|
|
Weighted Avg.
Grant Date Fair Value |
|||||||||
|
Nonvested balance at beginning of period
|
|
|
|
$
|
|
|
|
|
|
|
$
|
|
|
|
|
|
|
$
|
|
|
|
Granted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Vested
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|||
|
Forfeited
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|||
|
Nonvested balance at end of period
|
|
|
|
$
|
|
|
|
|
|
|
$
|
|
|
|
|
|
|
$
|
|
|
|
|
Class A Common Stock
|
|
Class B Common Stock
|
|||||
|
|
Nine Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|||||
|
|
2019
|
|
2018
|
|
2019
|
|||
|
Shares issued at beginning of period
|
|
|
|
|
|
|
|
|
|
Issuance (repurchased) pursuant to benefit plans
|
|
|
|
(
|
)
|
|
|
|
|
Restricted stock forfeited and withheld for taxes
|
(
|
)
|
|
(
|
)
|
|
|
|
|
Stock options exercised
|
|
|
|
|
|
|
|
|
|
Shares issued at end of period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Treasury stock
|
|
|
|
|
|
|
|
|
|
Total shares outstanding
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Foreign currency translation adjustments and other
|
|
|
|
|
|
|
|
||||||||
|
Balance at beginning of period
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
Other comprehensive income (loss) before reclassifications adjustments
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
|
Reclassification from other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Other comprehensive income (loss)
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
|
Income tax provision (benefit)
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Balance at end of period
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
|
Pensions and other postretirement benefits
|
|
|
|
|
|
|
|
||||||||
|
Balance at beginning of period
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
Other comprehensive income (loss) before reclassifications
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Reclassification from other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Income tax provision (benefit)
|
|
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
|
Balance at end of period
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
|
Cash flow hedge instruments
|
|
|
|
|
|
|
|
||||||||
|
Balance at beginning of period
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Other comprehensive income (loss) before reclassifications
|
(
|
)
|
|
|
|
|
|
|
|
|
|
||||
|
Reclassification from other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Income tax provision (benefit)
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Balance at end of period
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Other comprehensive income (loss) attributable to noncontrolling interests
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
|
Reportable Segments
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
|
Clean Air
|
|
Powertrain
|
|
Ride Performance
|
|
Motorparts
|
|
Total
|
|
Corporate
|
|
Reclass & Elims
|
|
Total
|
||||||||||||||||
|
For the Three Months Ended September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Revenues from external customers
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Intersegment revenues
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
For the Nine Months Ended September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Revenues from external customers
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
|
|
Intersegment revenues
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
|
Reportable Segments
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
|
Clean Air
|
|
Powertrain
|
|
Ride Performance
|
|
Motorparts
|
|
Total
|
|
Corporate
|
|
Reclass & Elims
|
|
Total
|
||||||||||||||||
|
For the Three Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Revenues from external customers
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Intersegment revenues
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
For the Nine Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Revenues from external customers
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Intersegment revenues
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
EBITDA including noncontrolling interests by Segments:
|
|
|
|
|
|
|
|
||||||||
|
Clean Air
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Powertrain
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Ride Performance
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Motorparts
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Corporate
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
|
Total EBITDA including noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Depreciation and amortization
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
|
Earnings (loss) before interest expense, income taxes, and noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Interest expense
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
|
Income tax (expense) benefit
|
|
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
|
Net income (loss)
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Reportable Segments
|
||||||||||||||||||
|
By Customer Type
|
Clean Air
|
|
Powertrain
|
|
Ride Performance
|
|
Motorparts
|
|
Total
|
||||||||||
|
Three Months Ended September 30, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
|
OE - Substrate
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
OE - Value add
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Aftermarket
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Nine Months Ended September 30, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
|
OE - Substrate
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
OE - Value add
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Aftermarket
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Reportable Segments
|
||||||||||||||||||
|
By Customer Type
|
Clean Air
|
|
Powertrain
|
|
Ride Performance
|
|
Motorparts
|
|
Total
|
||||||||||
|
Three Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
|
OE - Substrate
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
OE - Value add
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Aftermarket
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Nine Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
|
OE - Substrate
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
OE - Value add
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Aftermarket
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
||||
|
Total
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Reportable Segments
|
||||||||||||||||||
|
By Geography
|
Clean Air
|
|
Powertrain
|
|
Ride Performance
|
|
Motorparts
|
|
Total
|
||||||||||
|
Three Months Ended September 30, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
|
North America
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Europe, Middle East and Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Rest of world
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Nine Months Ended September 30, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
|
North America
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Europe, Middle East and Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Rest of world
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Reportable Segments
|
||||||||||||||||||
|
By Geography
|
Clean Air
|
|
Powertrain
|
|
Ride Performance
|
|
Motorparts
|
|
Total
|
||||||||||
|
Three Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
|
North America
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Europe, Middle East and Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Rest of world
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Nine Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
|
North America
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Europe, Middle East and Africa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Rest of world
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Three Months Ended September 30, 2019
|
||||||||||
|
|
Net Sales
|
|
Purchases
|
|
Royalty and Other Income
|
||||||
|
Icahn Automotive Group LLC
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
PSC Metals, Inc.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Anqing TP Goetze Piston Ring Company Limited
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Anqing TP Powder Metallurgy Company Limited
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Dongsuh Federal-Mogul Industrial Co., Ltd.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Federal-Mogul Powertrain Otomotiv A.S.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Federal-Mogul Izmit Piston ve Pim Uretim Tesisleri A.S.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Federal-Mogul TP Liners, Inc.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Frenos Hidraulicos Autos
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Montagewerk Abgastechnik Emden GmbH
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Nine Months Ended September 30, 2019
|
||||||||||
|
|
Net Sales
|
|
Purchases
|
|
Royalty and Other Income
|
||||||
|
Icahn Automotive Group LLC
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
PSC Metals, Inc.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Anqing TP Goetze Piston Ring Company Limited
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Anqing TP Powder Metallurgy Company Limited
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Dongsuh Federal-Mogul Industrial Co., Ltd.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Federal-Mogul Powertrain Otomotiv A.S.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Federal-Mogul Izmit Piston ve Pim Uretim Tesisleri A.S.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Federal-Mogul TP Liners, Inc.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Frenos Hidraulicos Autos
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Montagewerk Abgastechnik Emden GmbH
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
|
Receivables
|
|
Payables and accruals
|
|
Receivables
|
|
Payables and accruals
|
||||||||
|
Icahn Automotive Group LLC
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Anqing TP Goetze Piston Ring Company Limited
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Anqing TP Powder Metallurgy Company Limited
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Dongsuh Federal-Mogul Industrial Co., Ltd.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Federal-Mogul Powertrain Otomotiv A.S.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Federal-Mogul TP Liner Europe Otomotiv Ltd. Sti.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Federal-Mogul Izmit Piston ve Pim Uretim Tesisleri A.S.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Federal-Mogul TP Liners, Inc.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Farloc Argentina SAIC
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Montagewerk Abgastechnik Emden GmbH
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Three Months Ended September 30, 2019
|
||||||||||||||||||
|
|
Guarantor
Subsidiaries |
|
Nonguarantor
Subsidiaries |
|
Tenneco Inc.
(Parent Company) |
|
Reclass
& Elims |
|
Consolidated
|
||||||||||
|
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net sales and operating revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
External
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Affiliated companies
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Costs and expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Selling, general, and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Engineering, research, and development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Restructuring charges, asset impairments, and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Goodwill impairment charge
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Other expense (income)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Non-service postretirement benefit costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Equity in (income) losses of nonconsolidated affiliates, net of tax
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|||||
|
Other (income) expense, net
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|||||
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|||||
|
Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|||||
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
External, net of interest capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Affiliated companies, net of interest income
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|||||
|
Earnings (loss) before income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|||||
|
Income tax expense (benefit)
|
|
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||
|
Equity in net income (loss) from affiliated companies
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Net income (loss)
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Net income (loss) attributable to Tenneco Inc.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
Comprehensive income (loss) attributable to Tenneco Inc.
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||
|
|
Guarantor
Subsidiaries |
|
Nonguarantor
Subsidiaries |
|
Tenneco Inc.
(Parent Company) |
|
Reclass
& Elims |
|
Consolidated
|
||||||||||
|
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net sales and operating revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
External
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Affiliated companies
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Costs and expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Selling, general, and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Engineering, research, and development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Restructuring charges, asset impairments, and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Other expense (income)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Non-service postretirement benefit costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Other (income) expense, net
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
External, net of interest capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Affiliated companies, net of interest income
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Earnings (loss) before income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|||||
|
Income tax (benefit) expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Equity in net income (loss) from affiliated companies
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Net income (loss)
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Net income (loss) attributable to Tenneco Inc.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
Comprehensive income (loss) attributable to Tenneco Inc.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||
|
|
Guarantor
Subsidiaries |
|
Nonguarantor
Subsidiaries |
|
Tenneco Inc.
(Parent Company) |
|
Reclass
& Elims |
|
Consolidated
|
||||||||||
|
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net sales and operating revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
External
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Affiliated companies
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Costs and expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Selling, general, and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Engineering, research, and development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Restructuring charges, asset impairments, and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Goodwill impairment charge
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Other expense (income)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Non-service postretirement benefit costs
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Equity in losses of nonconsolidated affiliates, net of tax
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|||||
|
Other (income) expense, net
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|||||
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|||||
|
Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|||||
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
External, net of interest capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Affiliated companies, net of interest income
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Earnings (loss) before income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|||||
|
Income tax expense (benefit)
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|||||
|
Equity in net income (loss) from affiliated companies
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Net income (loss)
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|||||
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Net income (loss) attributable to Tenneco Inc.
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
Comprehensive income (loss) attributable to Tenneco Inc.
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||
|
|
Guarantor
Subsidiaries |
|
Nonguarantor
Subsidiaries |
|
Tenneco Inc.
(Parent Company) |
|
Reclass
& Elims |
|
Consolidated
|
||||||||||
|
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net sales and operating revenues:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
External
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Affiliated companies
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Costs and expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Selling, general, and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Engineering, research, and development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Restructuring charges, asset impairments, and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Other expense (income)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Non-service postretirement benefit costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Other (income) expense, net
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|||||
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|||||
|
Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
External, net of interest capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Affiliated companies, net of interest income
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Earnings (loss) before income taxes, noncontrolling interests and equity in net income (loss) from affiliated companies
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|||||
|
Income tax (benefit) expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Equity in net income (loss) from affiliated companies
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Net income (loss)
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Net income (loss) attributable to Tenneco Inc.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
Comprehensive income (loss) attributable to Tenneco Inc.
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
|
September 30, 2019
|
||||||||||||||||||
|
|
Guarantor
Subsidiaries |
|
Nonguarantor
Subsidiaries |
|
Tenneco Inc.
(Parent Company) |
|
Reclass
& Elims |
|
Consolidated
|
||||||||||
|
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Cash and cash equivalents
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Restricted cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Receivables, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Inventories, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Prepayments and other current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Property, plant and equipment, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Investment in affiliated companies
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Long-term receivables, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Goodwill
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Intangibles, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Investments in nonconsolidated affiliates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Deferred income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Other assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total assets
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Short-term debt, including current maturities of long-term debt
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Accounts payable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Accrued compensation and employee benefits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Accrued income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Accrued expenses and other current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Long-term debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Intercompany due to (due from)
|
|
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
|||||
|
Deferred income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Pension, postretirement benefits and other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Redeemable noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Tenneco Inc. shareholders’ equity
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Total equity
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Total liabilities, redeemable noncontrolling interests and equity
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
|
December 31, 2018
|
|||||||||||||||||||
|
|
Guarantor
Subsidiaries |
|
Nonguarantor
Subsidiaries |
|
Tenneco Inc.
(Parent Company) |
|
Reclass
& Elims |
|
Consolidated
|
|||||||||||
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Cash and cash equivalents
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Restricted cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Receivables, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Inventories, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Prepayments and other current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Total current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Property, plant and equipment, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Investment in affiliated companies
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
Long-term receivables, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Goodwill
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Intangibles, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Investments in nonconsolidated affiliates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Deferred income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Other assets
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
Total assets
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Short-term debt, including current maturities of long-term debt
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
Accounts payable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Accrued compensation and employee benefits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Accrued income taxes
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
Accrued expenses and other current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Total current liabilities
|
|
|
|
|
|
—
|
|
|
|
|
(
|
)
|
|
|
|
|||||
|
Long-term debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Intercompany due to (due from)
|
|
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
||||||
|
Deferred income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Postretirement benefits and other liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Total liabilities
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
Redeemable noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Tenneco Inc. shareholders’ equity
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
Noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Total equity
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
Total liabilities, redeemable noncontrolling interests and equity
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
|
|
Nine Months Ended September 30, 2019
|
|||||||||||||||||||
|
|
Guarantor
Subsidiaries |
|
Nonguarantor
Subsidiaries |
|
Tenneco Inc.
(Parent Company) |
|
Reclass
& Elims |
|
Consolidated
|
|||||||||||
|
Operating Activities
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Net cash provided (used) by operating activities
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Proceeds from sale of assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net proceeds from sale of business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Cash payments for property, plant and equipment
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
||||||
|
Acquisition of business, net of cash acquired
|
|
|
|
(
|
)
|
|
|
|
|
|
|
—
|
|
(
|
)
|
|||||
|
Proceeds from deferred purchase price of factored receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Other
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
||||||
|
Net cash provided (used) by investing activities
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
||||||
|
Financing Activities
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Proceeds from term loans and notes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Repayment of term loans and notes
|
|
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
(
|
)
|
||||||
|
Borrowings on revolving lines of credit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Payments on revolving lines of credit
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
(
|
)
|
||||||
|
Issuance (repurchase) of common shares
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
||||||
|
Cash dividends
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
||||||
|
Decrease in bank overdrafts
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
||||||
|
Net increase (decrease) in short-term borrowings secured by accounts receivable
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
||||||
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Distribution to noncontrolling interests partners
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
||||||
|
Intercompany dividends and net (decrease) increase in intercompany obligations
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net cash provided (used) by financing activities
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Increase (decrease) in cash, cash equivalents and restricted cash
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
(
|
)
|
||||||
|
Cash, cash equivalents and restricted cash, January 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Cash, cash equivalents and restricted cash, September 30
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||
|
|
Guarantor
Subsidiaries |
|
Nonguarantor
Subsidiaries |
|
Tenneco Inc.
(Parent Company) |
|
Reclass
& Elims |
|
Consolidated
|
||||||||||
|
Operating Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net cash provided by (used in) operating activities
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Proceeds from sale of assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Cash payments for property, plant and equipment
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|||||
|
Proceeds from deferred purchase price of factored receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Other
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|||||
|
Net cash used in investing activities
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|||||
|
Financing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Proceeds from term loans and notes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Repayments of term loans and notes
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|||||
|
Borrowings on revolving lines of credit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Payments on revolving lines of credit
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||
|
Issuance (repurchase) of common shares
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||
|
Cash dividends
|
|
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|||||
|
Net increase (decrease) in bank overdrafts
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|||||
|
Net increase (decrease) in short-term borrowings secured by accounts receivable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Other
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|||||
|
Distribution to noncontrolling interests partners
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|||||
|
Intercompany dividends and net (decrease) increase in intercompany obligations
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|||||
|
Net cash (used in) provided by financing activities
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|||||
|
Increase (decrease) in cash, cash equivalents and restricted cash
|
(
|
)
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|||||
|
Cash, cash equivalents and restricted cash, January 1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Cash, cash equivalents and restricted cash, September 30
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
•
|
an
increase
in selling, general, and administrative costs primarily due to the effect of the Acquisitions of
$410 million
;
|
|
•
|
an
increase
in depreciation and amortization of
$323 million
primarily due to the Acquisitions;
|
|
•
|
an
increase
in engineering, research and development of
$130 million
primarily due to the Acquisitions;
|
|
•
|
an
increase
in restructuring charges and other of
$71 million
related to higher costs for facility closure and other costs;
|
|
•
|
a goodwill impairment charge of
$69 million
as a result of our change in operating segments; and
|
|
•
|
an
increase
in interest expense and other financing charges of
$173 million
.
|
|
•
|
an
increase
in equity earnings in nonconsolidated affiliates of
$34 million
, which was the result of the Federal-Mogul Acquisition; and
|
|
•
|
a
reduction
in income tax expense of
$68 million
.
|
|
|
Three Months Ended September 30,
|
|
Increase / (Decrease)
|
|
Nine Months Ended September 30,
|
|
Increase / (Decrease)
|
||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
(1)
|
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
(1)
|
||||||||||||||
|
|
(millions, except percent, share, and per share amounts)
|
||||||||||||||||||||||||||||
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Net sales and operating revenues
|
$
|
4,319
|
|
|
$
|
2,371
|
|
|
$
|
1,948
|
|
|
82
|
%
|
|
$
|
13,307
|
|
|
$
|
7,485
|
|
|
$
|
5,822
|
|
|
78
|
%
|
|
Costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Cost of sales
|
3,653
|
|
|
2,002
|
|
|
1,651
|
|
|
82
|
%
|
|
11,310
|
|
|
6,329
|
|
|
4,981
|
|
|
79
|
%
|
||||||
|
Selling, general, and administrative
|
249
|
|
|
138
|
|
|
111
|
|
|
80
|
%
|
|
853
|
|
|
443
|
|
|
410
|
|
|
93
|
%
|
||||||
|
Depreciation and amortization
|
165
|
|
|
60
|
|
|
105
|
|
|
175
|
%
|
|
503
|
|
|
180
|
|
|
323
|
|
|
179
|
%
|
||||||
|
Engineering, research, and development
|
78
|
|
|
39
|
|
|
39
|
|
|
100
|
%
|
|
248
|
|
|
118
|
|
|
130
|
|
|
110
|
%
|
||||||
|
Restructuring charges, asset impairments, and other
|
43
|
|
|
16
|
|
|
27
|
|
|
169
|
%
|
|
128
|
|
|
57
|
|
|
71
|
|
|
125
|
%
|
||||||
|
Goodwill impairment charge
|
9
|
|
|
—
|
|
|
9
|
|
|
n/m
|
|
|
69
|
|
|
—
|
|
|
69
|
|
|
n/m
|
|
||||||
|
|
4,197
|
|
|
2,255
|
|
|
1,942
|
|
|
86
|
%
|
|
13,111
|
|
|
7,127
|
|
|
5,984
|
|
|
84
|
%
|
||||||
|
Other expense (income)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Non-service pension and other postretirement benefit costs (credits)
|
2
|
|
|
4
|
|
|
(2
|
)
|
|
(50
|
)%
|
|
8
|
|
|
10
|
|
|
(2
|
)
|
|
(20
|
)%
|
||||||
|
Equity in (earnings) losses of nonconsolidated affiliates, net of tax
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
n/m
|
|
|
(34
|
)
|
|
—
|
|
|
(34
|
)
|
|
n/m
|
|
||||||
|
Other expense (income), net
|
(27
|
)
|
|
—
|
|
|
(27
|
)
|
|
n/m
|
|
|
(43
|
)
|
|
3
|
|
|
(46
|
)
|
|
n/m
|
|
||||||
|
|
(26
|
)
|
|
4
|
|
|
(30
|
)
|
|
n/m
|
|
|
(69
|
)
|
|
13
|
|
|
(82
|
)
|
|
n/m
|
|
||||||
|
Earnings (loss) before interest expense, income taxes, and noncontrolling interests
|
148
|
|
|
112
|
|
|
36
|
|
|
32
|
%
|
|
265
|
|
|
345
|
|
|
(80
|
)
|
|
(23
|
)%
|
||||||
|
Interest expense
|
79
|
|
|
24
|
|
|
55
|
|
|
229
|
%
|
|
242
|
|
|
69
|
|
|
173
|
|
|
251
|
%
|
||||||
|
Earnings (loss) before income taxes and noncontrolling interests
|
69
|
|
|
88
|
|
|
(19
|
)
|
|
(22
|
)%
|
|
23
|
|
|
276
|
|
|
(253
|
)
|
|
(92
|
)%
|
||||||
|
Income tax expense (benefit)
|
(9
|
)
|
|
22
|
|
|
(31
|
)
|
|
(141
|
)%
|
|
5
|
|
|
73
|
|
|
(68
|
)
|
|
(93
|
)%
|
||||||
|
Net income (loss)
|
78
|
|
|
66
|
|
|
12
|
|
|
18
|
%
|
|
18
|
|
|
203
|
|
|
(185
|
)
|
|
(91
|
)%
|
||||||
|
Less: Net income (loss) attributable to noncontrolling interests
|
8
|
|
|
9
|
|
|
(1
|
)
|
|
(11
|
)%
|
|
39
|
|
|
39
|
|
|
—
|
|
|
—
|
%
|
||||||
|
Net income (loss) attributable to Tenneco Inc.
|
$
|
70
|
|
|
$
|
57
|
|
|
$
|
13
|
|
|
23
|
%
|
|
$
|
(21
|
)
|
|
$
|
164
|
|
|
$
|
(185
|
)
|
|
(113
|
)%
|
|
Earnings (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Basic earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Earnings (loss) per share
|
$
|
0.87
|
|
|
$
|
1.11
|
|
|
|
|
|
|
$
|
(0.25
|
)
|
|
$
|
3.20
|
|
|
|
|
|
||||||
|
Weighted average shares outstanding
|
80,916,676
|
|
|
51,272,618
|
|
|
|
|
|
|
80,903,967
|
|
|
51,247,664
|
|
|
|
|
|
||||||||||
|
Diluted earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Earnings (loss) per share
|
$
|
0.87
|
|
|
$
|
1.11
|
|
|
|
|
|
|
$
|
(0.25
|
)
|
|
$
|
3.20
|
|
|
|
|
|
||||||
|
Weighted average shares outstanding
|
80,916,676
|
|
|
51,401,829
|
|
|
|
|
|
|
80,903,967
|
|
|
51,395,927
|
|
|
|
|
|
||||||||||
|
|
|
Three months ended September 30, 2018
|
$
|
2,371
|
|
|
Acquisitions
|
1,800
|
|
|
|
Drivers in the change of organic revenues:
|
|
|
|
|
Volume and mix
|
203
|
|
|
|
Currency exchange rates
|
(55
|
)
|
|
|
Others
|
—
|
|
|
|
Three months ended September 30, 2019
|
$
|
4,319
|
|
|
Nine months ended September 30, 2018
|
$
|
7,485
|
|
|
Acquisitions
|
5,616
|
|
|
|
Drivers in the change of organic revenues:
|
|
|
|
|
Volume and mix
|
454
|
|
|
|
Currency exchange rates
|
(256
|
)
|
|
|
Others
|
8
|
|
|
|
Nine months ended September 30, 2019
|
$
|
13,307
|
|
|
Three months ended September 30, 2018
|
$
|
2,002
|
|
|
Acquisitions
|
1,488
|
|
|
|
Drivers in the change of organic revenues:
|
|
|
|
|
Volume and mix
|
214
|
|
|
|
Material
|
(10
|
)
|
|
|
Currency exchange rates
|
(47
|
)
|
|
|
Others
|
6
|
|
|
|
Three months ended September 30, 2019
|
$
|
3,653
|
|
|
Nine months ended September 30, 2018
|
$
|
6,329
|
|
|
Acquisitions
|
4,690
|
|
|
|
Drivers in the change of organic revenues:
|
|
|
|
|
Volume and mix
|
470
|
|
|
|
Material
|
(1
|
)
|
|
|
Currency exchange rates
|
(209
|
)
|
|
|
Others
|
31
|
|
|
|
Nine months ended September 30, 2019
|
$
|
11,310
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Total EBITDA including noncontrolling interests
|
|
313
|
|
|
172
|
|
|
768
|
|
|
525
|
|
||||
|
Depreciation and amortization
|
|
(165
|
)
|
|
(60
|
)
|
|
(503
|
)
|
|
(180
|
)
|
||||
|
Earnings (loss) before interest expense, income taxes, and noncontrolling interests
|
|
148
|
|
|
112
|
|
|
265
|
|
|
345
|
|
||||
|
Interest expense
|
|
(79
|
)
|
|
(24
|
)
|
|
(242
|
)
|
|
(69
|
)
|
||||
|
Income tax (expense) benefit
|
|
9
|
|
|
(22
|
)
|
|
(5
|
)
|
|
(73
|
)
|
||||
|
Net income (loss)
|
|
78
|
|
|
66
|
|
|
18
|
|
|
203
|
|
||||
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
8
|
|
|
9
|
|
|
39
|
|
|
39
|
|
||||
|
Net income (loss) attributable to Tenneco Inc.
|
|
$
|
70
|
|
|
$
|
57
|
|
|
$
|
(21
|
)
|
|
$
|
164
|
|
|
|
Segment Revenue
|
||||||||||||||||||||||||||||||||||||||
|
|
New Tenneco
|
|
DRiV
|
|
|
|
|
||||||||||||||||||||||||||||||||
|
|
Clean Air
|
|
Powertrain
|
|
Ride Performance
|
|
Motorparts
|
|
Total Revenues
|
||||||||||||||||||||||||||||||
|
Three months ended September 30,
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||||||
|
Revenues
|
$
|
1,772
|
|
|
$
|
1,602
|
|
|
$
|
1,082
|
|
|
$
|
—
|
|
|
$
|
671
|
|
|
$
|
461
|
|
|
$
|
794
|
|
|
$
|
308
|
|
|
$
|
4,319
|
|
|
$
|
2,371
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Value-add revenues
|
997
|
|
|
1,006
|
|
|
1,082
|
|
|
—
|
|
|
671
|
|
|
461
|
|
|
794
|
|
|
308
|
|
|
3,544
|
|
|
1,775
|
|
||||||||||
|
Currency effect on value-add revenue
|
(20
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(41
|
)
|
|
—
|
|
||||||||||
|
Value-add revenue excluding currency
|
$
|
1,017
|
|
|
$
|
1,006
|
|
|
$
|
1,082
|
|
|
$
|
—
|
|
|
$
|
685
|
|
|
$
|
461
|
|
|
$
|
801
|
|
|
$
|
308
|
|
|
$
|
3,585
|
|
|
$
|
1,775
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Substrate sales
|
$
|
775
|
|
|
$
|
596
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
775
|
|
|
$
|
596
|
|
|
Effect of Acquisitions
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,082
|
|
|
$
|
—
|
|
|
$
|
219
|
|
|
$
|
—
|
|
|
$
|
499
|
|
|
$
|
—
|
|
|
$
|
1,800
|
|
|
$
|
—
|
|
|
|
Segment Revenue
|
||||||||||||||||||||||||||||||||||||||
|
|
New Tenneco
|
|
DRiV
|
|
|
|
|
||||||||||||||||||||||||||||||||
|
|
Clean Air
|
|
Powertrain
|
|
Ride Performance
|
|
Motorparts
|
|
Total Revenues
|
||||||||||||||||||||||||||||||
|
Nine months ended September 30,
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||||||
|
Revenues
|
$
|
5,378
|
|
|
$
|
5,052
|
|
|
$
|
3,390
|
|
|
$
|
—
|
|
|
$
|
2,113
|
|
|
$
|
1,480
|
|
|
$
|
2,426
|
|
|
$
|
953
|
|
|
$
|
13,307
|
|
|
$
|
7,485
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Value-add revenues
|
3,120
|
|
|
3,183
|
|
|
3,390
|
|
|
—
|
|
|
2,113
|
|
|
1,480
|
|
|
2,426
|
|
|
953
|
|
|
11,049
|
|
|
5,616
|
|
||||||||||
|
Currency effect on value-add revenue
|
(102
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(65
|
)
|
|
—
|
|
|
(33
|
)
|
|
—
|
|
|
(200
|
)
|
|
—
|
|
||||||||||
|
Value-add revenue excluding currency
|
$
|
3,222
|
|
|
$
|
3,183
|
|
|
$
|
3,390
|
|
|
$
|
—
|
|
|
$
|
2,178
|
|
|
$
|
1,480
|
|
|
$
|
2,459
|
|
|
$
|
953
|
|
|
$
|
11,249
|
|
|
$
|
5,616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Substrate sales
|
$
|
2,258
|
|
|
$
|
1,869
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,258
|
|
|
$
|
1,869
|
|
|
Effect of Acquisitions
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,390
|
|
|
$
|
—
|
|
|
$
|
684
|
|
|
$
|
—
|
|
|
$
|
1,542
|
|
|
$
|
—
|
|
|
$
|
5,616
|
|
|
$
|
—
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended
September 30, |
|
Three Months
|
|
Nine Months
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019 vs 2018
|
|
2019 vs 2018
|
||||||||||||
|
|
(Millions)
|
||||||||||||||||||||||
|
EBITDA including noncontrolling interests by Segments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Clean Air
|
$
|
169
|
|
|
$
|
144
|
|
|
$
|
452
|
|
|
$
|
443
|
|
|
$
|
25
|
|
|
$
|
9
|
|
|
Powertrain
|
90
|
|
|
—
|
|
|
303
|
|
|
—
|
|
|
90
|
|
|
303
|
|
||||||
|
Ride Performance
|
20
|
|
|
14
|
|
|
1
|
|
|
58
|
|
|
6
|
|
|
(57
|
)
|
||||||
|
Motorparts
|
113
|
|
|
53
|
|
|
268
|
|
|
153
|
|
|
60
|
|
|
115
|
|
||||||
|
Corporate
|
(79
|
)
|
|
(39
|
)
|
|
(256
|
)
|
|
(129
|
)
|
|
(40
|
)
|
|
(127
|
)
|
||||||
|
Total EBITDA including noncontrolling interests
|
$
|
313
|
|
|
$
|
172
|
|
|
$
|
768
|
|
|
$
|
525
|
|
|
$
|
141
|
|
|
$
|
243
|
|
|
|
Reportable Segments
|
|
|
|
|
||||||||||||||||||||||||||
|
|
Clean Air
|
|
Powertrain
|
|
Ride Performance
|
|
Motorparts
|
|
Total
|
|
Corporate
|
|
Reclass & Elims
|
|
Total
|
||||||||||||||||
|
Three Months Ended September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Costs to achieve synergies
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Restructuring related to synergy initiatives
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
6
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
Other cost to achieve synergies
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
|
Total costs to achieve synergies
|
4
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
6
|
|
|
1
|
|
|
—
|
|
|
7
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Restructuring and related expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Other restructuring charges and costs
(2)
|
2
|
|
|
11
|
|
|
15
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|
—
|
|
|
28
|
|
||||||||
|
Impairment of assets held for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
||||||||
|
Total restructuring and related expenses
|
2
|
|
|
11
|
|
|
15
|
|
|
8
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
36
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Cost reduction initiatives
(3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
||||||||
|
Acquisition and expected separation costs
(4)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|
30
|
|
||||||||
|
Purchase accounting adjustments
(5)
|
—
|
|
|
8
|
|
|
(1
|
)
|
|
4
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
||||||||
|
Brazil tax credit
(6)
|
(9
|
)
|
|
—
|
|
|
(6
|
)
|
|
(7
|
)
|
|
(22
|
)
|
|
—
|
|
|
—
|
|
|
(22
|
)
|
||||||||
|
Antitrust reserve change in estimate
(7)
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
||||||||
|
Out of period adjustment
(8)
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||||||
|
Warranty charge
(9)
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||||
|
Goodwill impairment charge
(10)
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
||||||||
|
Total adjustments
|
$
|
(12
|
)
|
|
$
|
19
|
|
|
$
|
22
|
|
|
$
|
8
|
|
|
$
|
37
|
|
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
74
|
|
|
|
Reportable Segments
|
|
|
|
|
||||||||||||||||||||||||||
|
|
Clean Air
|
|
Powertrain
|
|
Ride Performance
|
|
Motorparts
|
|
Total
|
|
Corporate
|
|
Reclass & Elims
|
|
Total
|
||||||||||||||||
|
Three Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Costs to achieve synergies
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Restructuring related to synergy initiatives
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
Other cost to achieve synergies
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||||
|
Total costs to achieve synergies
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
2
|
|
||||||||
|
Restructuring and related expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Other restructuring charges and costs
|
1
|
|
|
—
|
|
|
10
|
|
|
2
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
13
|
|
||||||||
|
Asset impairments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||||
|
Total restructuring and related expenses
|
1
|
|
|
—
|
|
|
10
|
|
|
2
|
|
|
13
|
|
|
2
|
|
|
—
|
|
|
15
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Acquisition and expected separation costs
(4)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
12
|
|
|||||||||
|
Litigation settlement accrual
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
|
1
|
|
|
—
|
|
|
10
|
|
||||||||
|
Total adjustments
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
20
|
|
|
$
|
2
|
|
|
$
|
23
|
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
39
|
|
|
(1) Cost to achieve synergies related to the Acquisitions.
|
|
(2) The Ride Performance segment includes other charges of $10 million for the three months ended September 30, 2019.
|
|
(3) Costs related to cost reduction initiatives.
|
|
(4) Costs related to the Acquisitions and expected separation.
|
|
(5) This primarily relates to a non-cash charge to cost of goods sold for the amortization of the inventory fair value step-up recorded as part of the Acquisitions.
|
|
(6) Recovery of value-added tax in a foreign jurisdiction.
|
|
(7) Reduction in estimated antitrust accrual.
|
|
(8) Inventory losses attributable to prior periods.
|
|
(9) Charge related to warranty. Although we regularly incur warranty costs, this specific charge is of an unusual nature in the period incurred.
|
|
(10) Post segment reorganization impairment of goodwill.
|
|
|
|
|
Reportable Segments
|
|
|
|
|
||||||||||||||||||||||||||
|
|
Clean Air
|
|
Powertrain
|
|
Ride Performance
|
|
Motorparts
|
|
Total
|
|
Corporate
|
|
Reclass & Elims
|
|
Total
|
||||||||||||||||
|
Nine Months Ended September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Costs to achieve synergies
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Restructuring related to synergy initiatives
|
$
|
5
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
9
|
|
|
$
|
17
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
18
|
|
|
Other cost to achieve synergies
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
3
|
|
||||||||
|
Total costs to achieve synergies
|
5
|
|
|
2
|
|
|
2
|
|
|
9
|
|
|
18
|
|
|
3
|
|
|
—
|
|
|
21
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Restructuring and related expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Other restructuring charges and costs
(2)
|
20
|
|
|
28
|
|
|
48
|
|
|
3
|
|
|
99
|
|
|
1
|
|
|
—
|
|
|
100
|
|
||||||||
|
Asset impairments
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||||
|
Impairment of assets held for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
||||||||
|
Total restructuring and related expenses
|
21
|
|
|
28
|
|
|
48
|
|
|
12
|
|
|
109
|
|
|
1
|
|
|
—
|
|
|
110
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Cost reduction initiatives
(3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
16
|
|
||||||||
|
Acquisition and expected separation costs
(4)
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
96
|
|
|
—
|
|
|
97
|
|
||||||||
|
Purchase accounting adjustments
(5)
|
—
|
|
|
10
|
|
|
4
|
|
|
41
|
|
|
55
|
|
|
—
|
|
|
—
|
|
|
55
|
|
||||||||
|
Brazil tax credit
(6)
|
(9
|
)
|
|
—
|
|
|
(6
|
)
|
|
(7
|
)
|
|
(22
|
)
|
|
—
|
|
|
—
|
|
|
(22
|
)
|
||||||||
|
Antitrust reserve change in estimate
(7)
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
||||||||
|
Out of period adjustment
(8)
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||||||
|
Process harmonization
(9)
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
10
|
|
||||||||
|
Warranty charge
(10)
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
||||||||
|
Goodwill impairment charge
(11)
|
—
|
|
|
—
|
|
|
69
|
|
|
—
|
|
|
69
|
|
|
—
|
|
|
—
|
|
|
69
|
|
||||||||
|
Total adjustments
|
$
|
13
|
|
|
$
|
40
|
|
|
$
|
122
|
|
|
$
|
69
|
|
|
$
|
244
|
|
|
$
|
116
|
|
|
$
|
—
|
|
|
$
|
360
|
|
|
|
Reportable Segments
|
|
|
|
|
||||||||||||||||||||||||||
|
|
Clean Air
|
|
Powertrain
|
|
Ride Performance
|
|
Motorparts
|
|
Total
|
|
Corporate
|
|
Reclass & Elims
|
|
Total
|
||||||||||||||||
|
Nine months ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Costs to achieve synergies
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Restructuring related to synergy initiatives
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
9
|
|
|
Other cost to achieve synergies
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||||
|
Total costs to achieve synergies
|
6
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
8
|
|
|
3
|
|
|
—
|
|
|
11
|
|
||||||||
|
Restructuring and related expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Other restructuring charges and costs
|
13
|
|
|
—
|
|
|
27
|
|
|
6
|
|
|
46
|
|
|
—
|
|
|
—
|
|
|
46
|
|
||||||||
|
Asset impairments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||||
|
Total restructuring and related expenses
|
13
|
|
|
—
|
|
|
27
|
|
|
6
|
|
|
46
|
|
|
2
|
|
|
—
|
|
|
48
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Cost reduction initiatives
(3)
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
10
|
|
||||||||
|
Acquisition and expected separation costs
(4)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43
|
|
|
—
|
|
|
43
|
|
||||||||
|
Litigation settlement accrual
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
|
1
|
|
|
—
|
|
|
10
|
|
||||||||
|
Warranty charge
(10)
|
—
|
|
|
—
|
|
|
5
|
|
|
.
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||||||
|
Environmental charge
(12)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||||
|
Total adjustments
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
52
|
|
|
$
|
7
|
|
|
$
|
78
|
|
|
$
|
53
|
|
|
$
|
—
|
|
|
$
|
131
|
|
|
(1) Cost to achieve synergies related to the Acquisitions.
|
|
(2) The Ride Performance segment includes $30 million of other charges for the nine months ended September 30, 2019.
|
|
(3) Costs related to cost reduction initiatives.
|
|
(4) Costs related to the Acquisitions and expected separation.
|
|
(5) This primarily relates to a non-cash charge to cost of goods sold for the amortization of the inventory fair value step-up recorded as part of the Acquisitions.
|
|
(6) Recovery of value-added tax in a foreign jurisdiction.
|
|
(7) Reduction in estimated antitrust accrual.
|
|
(8) Inventory losses attributable to prior periods.
|
|
(9) Change due to process harmonization.
|
|
(10) Charge related to warranty. Although we regularly incur warranty costs, this specific charge is of an unusual nature in the period incurred.
|
|
(11) Post segment reorganization impairment of goodwill.
|
|
(12) Environmental charge related to an acquired site whereby an indemnification reverted back to the Company resulting from a 2009 bankruptcy filing of Mark IV Industries.
|
|
|
Credit Facilities as of September 30, 2019
|
||||
|
|
Term
|
|
Available
(b)
|
||
|
Tenneco Inc. revolving credit facility
(a)
|
2023
|
|
$
|
1.3
|
|
|
Tenneco Inc. Term Loan A
|
2023
|
|
—
|
|
|
|
Tenneco Inc. Term Loan B
|
2025
|
|
—
|
|
|
|
Subsidiaries’ credit agreements
|
2020 - 2028
|
|
0.1
|
|
|
|
|
|
|
$
|
1.4
|
|
|
(a)
|
We are required to pay commitment fees under the revolving credit facility on the unused portion of the total commitment.
|
|
(b)
|
Letters of credit reduce the available borrowings under the revolving credit facility. As of
September 30, 2019
, the revolving credit facility had
$20 million
in letters of credit outstanding.
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
|
Borrowings on securitization programs
|
|
$
|
3
|
|
|
$
|
6
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
|
Accounts receivable outstanding and derecognized
|
$
|
1.1
|
|
|
$
|
1.0
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
|
Deferred purchase price receivable
|
$
|
47
|
|
|
$
|
154
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Proceeds from factoring qualifying as sales
|
$
|
1.1
|
|
|
$
|
0.6
|
|
|
$
|
3.6
|
|
|
$
|
2.1
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Financing charges on sale of receivables
(a)
|
$
|
9
|
|
|
$
|
3
|
|
|
$
|
23
|
|
|
$
|
8
|
|
|
(a)
Amount is included in "Interest expense" in the condensed consolidated statements of income (loss).
|
|
|
|
|
|||||||||||
|
|
Nine Months Ended September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
|
Operational cash flow before changes in operating assets and liabilities
|
$
|
469
|
|
|
$
|
385
|
|
|
|
|
|
|
||||
|
Changes in operating assets and liabilities:
|
|
|
|
||||
|
Receivables
|
(457
|
)
|
|
(260
|
)
|
||
|
Inventories
|
112
|
|
|
(115
|
)
|
||
|
Payables and accrued expenses
|
99
|
|
|
154
|
|
||
|
Accrued interest and income taxes
|
(12
|
)
|
|
(5
|
)
|
||
|
Other assets and liabilities
|
(147
|
)
|
|
(122
|
)
|
||
|
Total change in operating assets and liabilities
|
(405
|
)
|
|
(348
|
)
|
||
|
Net cash provided (used) by operating activities
|
$
|
64
|
|
|
$
|
37
|
|
|
•
|
cash flows provided by the operations of the Federal-Mogul Acquisition, of approximately
$32 million
; and
|
|
•
|
a net
decrease
of $
5 million
due to unfavorable changes in working capital items and performance (excluding the Federal-Mogul Acquisition).
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
|
Proceeds from sale of assets
|
$
|
8
|
|
|
$
|
6
|
|
|
Net proceeds from sale of business
|
22
|
|
|
—
|
|
||
|
Cash payments for property, plant, and equipment
|
(541
|
)
|
|
(255
|
)
|
||
|
Acquisition of business, net of cash acquired
|
(158
|
)
|
|
—
|
|
||
|
Proceeds from deferred purchase price of factored receivables
|
203
|
|
|
102
|
|
||
|
Other
|
—
|
|
|
(2
|
)
|
||
|
Net cash used by investing activities
|
$
|
(466
|
)
|
|
$
|
(149
|
)
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
|
Proceeds from term loans and notes
|
$
|
171
|
|
|
$
|
12
|
|
|
Repayments of term loans and notes
|
(278
|
)
|
|
(35
|
)
|
||
|
Borrowings on revolving lines of credit
|
6,804
|
|
|
4,051
|
|
||
|
Payments on revolving lines of credit
|
(6,548
|
)
|
|
(4,074
|
)
|
||
|
Issuance (repurchase) of common shares
|
(2
|
)
|
|
(2
|
)
|
||
|
Cash dividends
|
(20
|
)
|
|
(39
|
)
|
||
|
Purchase of common stock under the share repurchase program
|
—
|
|
|
—
|
|
||
|
Net increase (decrease) in bank overdrafts
|
(12
|
)
|
|
(5
|
)
|
||
|
Net increase (decrease) in short-term borrowings secured by accounts receivable
|
(3
|
)
|
|
150
|
|
||
|
Other
|
1
|
|
|
(2
|
)
|
||
|
Distributions to noncontrolling interest partners
|
(20
|
)
|
|
(44
|
)
|
||
|
Net cash provided (used) by financing activities
|
$
|
93
|
|
|
$
|
12
|
|
|
|
Notional Amount
|
||
|
Long position
|
$
|
(47
|
)
|
|
Short position
|
$
|
47
|
|
|
Period
|
Total Number of
Shares Purchased (1) |
|
Average
Price Paid |
|
Total Number
of Shares Purchased as Part of Publicly Announced Plans or Programs |
|
Maximum Value of
Shares That May Yet be Purchased Under These Plans or Programs (Millions) |
||||||
|
July 2019
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
231
|
|
|
August 2019
|
—
|
|
|
—
|
|
|
—
|
|
|
231
|
|
||
|
September 2019
|
—
|
|
|
—
|
|
|
—
|
|
|
231
|
|
||
|
Total
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
231
|
|
|
(1)
|
Shares withheld upon vesting of restricted stock and share settled restricted stock units in the
third
quarter of 2019.
|
|
Exhibit
Number
|
|
Description
|
|
|
|
|
|
*
31.1
|
—
|
Certification of Brian J. Kesseler under Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
*
31.2
|
—
|
Certification of Roger J. Wood under Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
*
31.3
|
—
|
Certification of Jason M. Hollar under Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
*
32.1
|
—
|
Certification of Brian J. Kesseler, Roger J. Wood and Jason M. Hollar under Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
*101.INS
|
—
|
Inline XBRL Instance Document. The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
|
|
|
*101.SCH
|
—
|
Inline XBRL Taxonomy Extension Schema Document.
|
|
|
|
|
|
*101.CAL
|
—
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
|
|
*101.DEF
|
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Inline XBRL Taxonomy Extension Definition Linkbase Document.
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*101.LAB
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Inline XBRL Taxonomy Extension Label Linkbase Document.
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*101.PRE
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Inline XBRL Taxonomy Extension Presentation Linkbase Document.
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104
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Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
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*
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Filed herewith.
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TENNECO INC.
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By:
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S
/ JASON M. HOLLAR
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Jason M. Hollar
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Executive Vice President and Chief Financial
Officer (on behalf of the Registrant)
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TENNECO INC.
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By:
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/s/ JOHN S. PATOUHAS
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John S. Patouhas
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Vice President and Chief Accounting Officer (principal accounting officer)
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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 |
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| DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
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No information found
No Customers Found
Suppliers
Price
Yield
| Owner | Position | Direct Shares | Indirect Shares |
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