Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

12 Months Ended

Dec. 31, 2013

Statement of Comprehensive Income (Loss)

STATEMENT OF COMPREHENSIVE INCOME (LOSS)

	For the Year Ended December 31, 2013
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
Revenues
Net sales and operating revenues —
External	$	3,498		$	4,466		$	—		$	—		$	7,964
Affiliated companies	350			572			—			(922		)	—
	3,848			5,038			—			(922		)	7,964
Costs and expenses
Cost of sales (exclusive of depreciation and amortization shown below)	3,103			4,553			—			(922		)	6,734
Goodwill impairment charge	—			—			—			—			—
Engineering, research, and development	66			78			—			—			144
Selling, general, and administrative	187			260			6			—			453
Depreciation and amortization of other intangibles	78			127			—			—			205
	3,434			5,018			6			(922		)	7,536
Other income (expense)
Loss on sale of receivables	—			(4		)	—			—			(4		)
Other income (expense)	(1		)	59			—			(58		)	—
	(1		)	55			—			(58		)	(4		)
Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income from affiliated companies	413			75			(6		)	(58		)	424
Interest expense —
External (net of interest capitalized)	(2		)	5			77			—			80
Affiliated companies (net of interest income)	70			(72		)	2			—			—
Earnings (loss) before income taxes, noncontrolling interests and equity in net income from affiliated companies	345			142			(85		)	(58		)	344
Income tax expense	60			62			—			—			122
Equity in net income (loss) from affiliated companies	32			—			268			(300		)	—
Net income (loss)	317			80			183			(358		)	222
Less: Net income attributable to noncontrolling interests	—			39			—			—			39
Net income (loss) attributable to Tenneco Inc.	$	317		$	41		$	183		$	(358	)	$	183
Comprehensive income (loss) attributable to Tenneco Inc.	$	390		$	16		$	183		$	(358	)	$	231

STATEMENT OF COMPREHENSIVE INCOME (LOSS)

	For the Year Ended December 31, 2012
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
Revenues
Net sales and operating revenues —
External	$	3,331		$	4,032		$	—		$	—		$	7,363
Affiliated companies	182			547			—			(729		)	—
	3,513			4,579			—			—			7,363
Costs and expenses
Cost of sales (exclusive of depreciation and amortization shown below)	3,056			3,843			—			(729		)	6,170
Goodwill impairment charge	—			—			—			—			—
Engineering, research, and development	57			69			—			—			126
Selling, general, and administrative	198			224			5			—			427
Depreciation and amortization of other intangibles	72			133			—			—			205
	3,383			4,269			5			(729		)	6,928
Other income (expense)
Loss on sale of receivables	—			(4		)	—			—			(4		)
Other income (expense)	115			(71		)	—			(47		)	(3		)
	115			(75		)	—			(47		)	(7		)
Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income from affiliated companies	245			235			(5		)	(47		)	428
Interest expense —
External (net of interest capitalized)	—			5			100			—			105
Affiliated companies (net of interest income)	212			(81		)	(131		)	—			—
Earnings (loss) before income taxes, noncontrolling interests and equity in net income from affiliated companies	33			311			26			(47		)	323
Income tax expense	(39		)	58			—			—			19
Equity in net income (loss) from affiliated companies	217			—			249			(466		)	—
Net income (loss)	289			253			275			(513		)	304
Less: Net income attributable to noncontrolling interests	—			29			—			—			29
Net income (loss) attributable to Tenneco Inc.	$	289		$	224		$	275		$	(513	)	$	275
Comprehensive income (loss) attributable to Tenneco Inc.	$	277		$	210		$	275		$	(513	)	$	249

STATEMENT OF COMPREHENSIVE INCOME (LOSS)

	For the Year Ended December 31, 2011
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
Revenues
Net sales and operating revenues —
External	$	3,103		$	4,102		$	—		$	—		$	7,205
Affiliated companies	162			514			—			(676		)	—
	3,265			4,616			—			(676		)	7,205
Costs and expenses
Cost of sales (exclusive of depreciation and amortization shown below)	2,764			3,949			—			(676		)	6,037
Goodwill impairment charge	—			11			—			—			11
Engineering, research, and development	57			76			—			—			133
Selling, general, and administrative	144			281			3			—			428
Depreciation and amortization of other intangibles	74			133			—			—			207
	3,039			4,450			3			(676		)	6,816
Other income (expense)
Loss on sale of receivables	—			(5		)	—			—			(5		)
Other income (expense)	80			1			—			(86		)	(5		)
	80			(4		)	—			(86		)	(10		)
Earnings (loss) before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies	306			162			(3		)	(86		)	379
Interest expense —
External (net of interest capitalized)	(1		)	6			103			—			108
Affiliated companies (net of interest income)	211			(72		)	(139		)	—			—
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies	96			228			33			(86		)	271
Income tax expense	12			76			—			—			88
Equity in net income (loss) from affiliated companies	116			—			124			(240		)	—
Net income (loss)	200			152			157			(326		)	183
Less: Net income attributable to noncontrolling interests	—			26			—			—			26
Net income (loss) attributable to Tenneco Inc.	$	200		$	126		$	157		$	(326	)	$	157
Comprehensive income (loss) attributable to Tenneco Inc.	$	105		$	81		$	157		$	(326	)	$	17

Balance Sheet

BALANCE SHEET

	December 31, 2013
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)		Reclass & Elims			Consolidated
	(Millions)
ASSETS
Current assets:
Cash and cash equivalents	$	6		$	269		$	—	$	—		$	275
Restricted cash	—			5			—		—			5
Receivables, net	387			1,306			16		(649		)	1,060
Inventories	279			377			—		—			656
Deferred income taxes	87			—			7		(23		)	71
Prepayments and other	35			188			—		—			223
Total current assets	794			2,145			23		(672		)	2,290
Other assets:
Investment in affiliated companies	944			—			696		(1,640		)	—
Notes and advances receivable from affiliates	1,026			7,320			4,826		(13,172		)	—
Long-term receivables, net	12			2			—		—			14
Goodwill	22			47			—		—			69
Intangibles, net	13			17			—		—			30
Deferred income taxes	72			9			44		—			125
Pension Assets	—			—			—		—			—
Other	44			60			23		—			127
	2,133			7,455			5,589		(14,812		)	365
Plant, property, and equipment, at cost	1,173			2,325			—		—			3,498
Less — Accumulated depreciation and amortization	(807		)	(1,516		)	—		—			(2,323		)
	366			809			—		—			1,175
Total assets	$	3,293		$	10,409		$	5,612	$	(15,484	)	$	3,830
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt (including current maturities of long-term debt)
Short-term debt — non-affiliated	$	—		$	68		$	15	$	—		$	83
Short-term debt — affiliated	247			176			10		(433		)	—
Accounts payable	521			1,011			—		(173		)	1,359
Accrued taxes	9			31			—		—			40
Other	128			285			9		(66		)	356
Total current liabilities	905			1,571			34		(672		)	1,838
Long-term debt — non-affiliated	—			8			1,011		—			1,019
Long-term debt — affiliated	1,700			7,338			4,134		(13,172		)	—
Deferred income taxes	—			28			—		—			28
Postretirement benefits and other liabilities	357			92			—		4			453
Commitments and contingencies
Total liabilities	2,962			9,037			5,179		(13,840		)	3,338
Redeemable noncontrolling interests	—			20			—		—			20
Tenneco Inc. Shareholders’ equity	331			1,313			433		(1,644		)	433
Noncontrolling interests	—			39			—		—			39
Total equity	331			1,352			433		(1,644		)	472
Total liabilities, redeemable noncontrolling interests and equity	$	3,293		$	10,409		$	5,612	$	(15,484	)	$	3,830

BALANCE SHEET

	December 31, 2012
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)		Reclass & Elims			Consolidated
	(Millions)
ASSETS
Current assets:
Cash and cash equivalents	$	4		$	219		$	—	$	—		$	223
Receivables, net	341			1,268			30		(653		)	986
Inventories	278			389			—		—			667
Deferred income taxes	91			—			6		(25		)	72
Prepayments and other	28			148			—		—			176
Total current assets	742			2,024			36		(678		)	2,124
Other assets:
Investment in affiliated companies	551			—			717		(1,268		)	—
Notes and advances receivable from affiliates	957			4,495			4,594		(10,046		)	—
Long-term receivables, net	2			2			—		—			4
Goodwill	21			51			—		—			72
Intangibles, net	18			17			—		—			35
Deferred income taxes	55			1			60		—			116
Other	31			75			29		—			135
	1,635			4,641			5,400		(11,314		)	362
Plant, property, and equipment, at cost	1,098			2,267			—		—			3,365
Less — Accumulated depreciation and amortization	(763		)	(1,480		)	—		—			(2,243		)
	335			787			—		—			1,122
Total assets	$	2,712		$	7,452		$	5,436	$	(11,992	)	$	3,608
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt (including current maturities of long-term debt)
Short-term debt — non-affiliated	$	—		$	112		$	1	$	—		$	113
Short-term debt — affiliated	250			173			10		(433		)	—
Accounts payable	423			954			—		(191		)	1,186
Accrued taxes	16			34			—		—			50
Other	135			210			9		(54		)	300
Total current liabilities	824			1,483			20		(678		)	1,649
Long-term debt — non-affiliated	—			8			1,059		—			1,067
Long-term debt — affiliated	1,447			4,533			4,066		(10,046		)	—
Deferred income taxes	—			27			—		—			27
Postretirement benefits and other liabilities	438			118			—		3			559
Commitments and contingencies
Total liabilities	2,709			6,169			5,145		(10,721		)	3,302
Redeemable noncontrolling interests	—			15			—		—			15
Tenneco Inc. Shareholders’ equity	3			1,223			291		(1,271		)	246
Noncontrolling interests	—			45			—		—			45
Total equity	3			1,268			291		(1,271		)	291
Total liabilities, redeemable noncontrolling interests and equity	$	2,712		$	7,452		$	5,436	$	(11,992	)	$	3,608

Statement of Cash Flows

STATEMENT OF CASH FLOWS

	Year Ended December 31, 2013
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims		Consolidated
	(Millions)
Operating Activities
Net cash provided (used) by operating activities	$	270		$	185		$	48		$	—	$	503
Investing Activities
Proceeds from sale of assets	1			7			—			—		8
Cash payments for plant, property, and equipment	(102		)	(142		)	—			—		(244		)
Cash payments for software related intangible assets	(19		)	(6		)	—			—		(25		)
Changes in restricted cash	—			(5		)	—			—		(5		)
Net cash used by investing activities	(120		)	(146		)	—			—		(266		)
Financing Activities
Retirement of long-term debt	—			(2		)	(14		)	—		(16		)
Tax benefit from stock-based compensation	—			—			24			—		24
Purchase of common stock under the share repurchase program	—			—			(27		)	—		(27		)
Issuance of common stock	—			—			20			—		20
Increase in bank overdrafts	—			(6		)	—			—		(6		)
Net increase in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivable	—			(43		)	21			—		(22		)
Net increase in short-term borrowings secured by accounts receivable	—			—			(40		)	—		(40		)
Intercompany dividends and net increase (decrease) in intercompany obligations	(148		)	180			(32		)	—		—
Purchase of noncontrolling equity interest	—			(69		)	—			—		(69		)
Distribution to noncontrolling interests partners	—			(39		)	—			—		(39		)
Net cash provided (used) by financing activities	(148		)	21			(48		)	—		(175		)
Effect of foreign exchange rate changes on cash and cash equivalents	—			(10		)	—			—		(10		)
Increase in cash and cash equivalents	2			50			—			—		52
Cash and cash equivalents, January 1	4			219			—			—		223
Cash and cash equivalents, December 31 (Note)	$	6		$	269		$	—		$	—	$	275

Note: Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase.

STATEMENT OF CASH FLOWS

	Year Ended December 31, 2012
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims		Consolidated
	(Millions)
Operating Activities
Net cash provided (used) by operating activities	$	385		$	206		$	(226	)	$	—	$	365
Investing Activities
Proceeds from sale of assets	—			3			—			—		3
Cash payments for plant, property, and equipment	(101		)	(155		)	—			—		(256		)
Cash payments for software related intangible assets	(6		)	(7		)	—			—		(13		)
Cash payments for net assets purchased	(7		)	—			—			—		(7		)
Net cash used by investing activities	(114		)	(159		)	—			—		(273		)
Financing Activities
Retirement of long-term debt	—			(1		)	(410		)	—		(411		)
Issuance of long-term debt	—			—			250			—		250
Debt issuance cost on long-term debt	—			—			(13		)	—		(13		)
Purchase of common stock under the share repurchase program	—			—			(18		)	—		(18		)
Issuance of common stock	—			—			5			—		5
Increase in bank overdrafts	—			5			—			—		5
Net increase in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivable	—			48			19			—		67
Net increase in short-term borrowings secured by accounts receivable	—			—			50			—		50
Intercompany dividends and net increase (decrease) in intercompany obligations	(268		)	(75		)	343			—		—
Capital contribution from noncontrolling interest partner	—			5			—			—		5
Distribution to noncontrolling interests partners	—			(29		)	—			—		(29		)
Net cash provided (used) by financing activities	(268		)	(47		)	226			—		(89		)
Effect of foreign exchange rate changes on cash and cash equivalents	—			6			—			—		6
Increase (decrease) in cash and cash equivalents	3			6			—			—		9
Cash and cash equivalents, January 1	1			213			—			—		214
Cash and cash equivalents, December 31 (Note)	$	4		$	219		$	—		$	—	$	223

Note: Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase.

STATEMENT OF CASH FLOWS

	Year Ended December 31, 2011
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims		Consolidated
	(Millions)
Operating Activities
Net cash provided (used) by operating activities	$	401		$	83		$	(239	)	$	—	$	245
Investing Activities
Proceeds from sale of assets	3			1			—			—		4
Cash payments for plant, property, and equipment	(69		)	(144		)	—			—		(213		)
Cash payments for software related intangible assets	(4		)	(11		)	—			—		(15		)
Cash payments for net assets purchased	—			—			—			—		—
Net cash used by investing activities	(70		)	(154		)	—			—		(224		)
Financing Activities
Retirement of long-term debt	—			(1		)	(23		)	—		(24		)
Issuance of long-term debt	—			5			—			—		5
Debt issuance cost on long-term debt	—			—			(1		)	—		(1		)
Purchase of common stock under the share repurchase program	—			—			(16		)	—		(16		)
Increase in bank overdrafts	—			3			—			—		3
Net decrease in revolver borrowings and short-term debt excluding current maturities of long-term debt	—			6			24			—		30
Net increase in short-term borrowings secured by accounts receivable	—			—			—			—		—
Intercompany dividends and net increase (decrease) in intercompany obligations	(330		)	75			255			—		—
Capital contribution from noncontrolling interest partner	—			1			—			—		1
Purchase of noncontrolling equity interest	—			(4		)	—			—		(4		)
Distribution to noncontrolling interests partners	—			(20		)	—			—		(20		)
Net cash provided (used) by financing activities	(330		)	65			239			—		(26		)
Effect of foreign exchange rate changes on cash and cash equivalents	—			(14		)	—			—		(14		)
Increase (decrease) in cash and cash equivalents	1			(20		)	—			—		(19		)
Cash and cash equivalents, January 1	—			233			—			—		233
Cash and cash equivalents, December 31 (Note)	$	1		$	213		$	—		$	—	$	214

Note: Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase.