TENNECO INC. (NYSE:TEN) Files An 8-K Costs Associated with Exit or Disposal ActivitiesItem 2.05. COSTS ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES.
On June29, 2017, Tenneco Inc. determined to undertake a restructuring initiative and close its Clean Air manufacturing plant in O’Sullivan Beach, Australia when General Motors and Toyota end vehicle production in the country, which is expected to occur in October 2017. This initiative may include additional restructuring actions with respect to the company’s local original equipment Ride Performance operations. All such restructuring activities related to this initiative are expected to be completed by the first quarter of 2018. The company expects to record total charges related to this initiative of approximately $12million in the second quarter of 2017 and up to $8million in the third quarter of 2017. The charges comprise approximately $18million of cash expenditures (including severance payments to employees, the cost of decommissioning equipment, a lease termination payment and other costs associated with this action) and $2million of non-cash asset impairments.
About TENNECO INC. (NYSE:TEN)
Tenneco Inc. (Tenneco) is a producer of clean air and ride performance products and systems for light vehicle, commercial truck, off-highway and other vehicle applications. The Company operates in six segments: North America Clean Air; North America Ride Performance; Europe, South America and India Clean Air; Europe, South America and India Ride Performance; Asia Pacific Clean Air, and Asia Pacific Ride Performance. Its various brands include Monroe, Rancho, Clevite Elastomers, Axios, Kinetic, Fric-Rot, Walker, XNOx, Fonos, DynoMax and Thrush clean air products. It designs, manufactures and distributes various products and systems designed to reduce pollution and optimize engine performance, acoustic tuning and weight, including catalytic converters and diesel oxidation catalysts; lean nitrogen oxide (NOx) traps; mufflers and resonators; fabricated exhaust manifolds; pipes; hydroformed assemblies; elastomeric hangers and isolators, and aftertreatment control units.