Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Statement of Comprehensive Income (Loss)

STATEMENT OF COMPREHENSIVE INCOME (LOSS)

	For the Three Months Ended March 31, 2014
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
Revenues
Net sales and operating revenues —
External	$	920		$	1,174		$	—		$	—		$	2,094
Affiliated companies	103			148			—			(251		)	—
	1,023			1,322			—			(251		)	2,094
Costs and expenses
Cost of sales (exclusive of depreciation and amortization shown below)	802			1,203			—			(251		)	1,754
Engineering, research, and development	22			20			—			—			42
Selling, general, and administrative	51			79			2			—			132
Depreciation and amortization of other intangibles	21			30			—			—			51
	896			1,332			2			(251		)	1,979
Other income (expense)
Loss on sale of receivables	—			(1		)	—			—			(1		)
Other income (loss)	(2		)	1			—			—			(1		)
	(2		)	—			—			—			(2		)
Earnings (loss) before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies	125			(10		)	(2		)	—			113
Interest expense —
External (net of interest capitalized)	—			—			19			—			19
Affiliated companies (net of interest income)	16			(16		)	—			—			—
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies	109			6			(21		)	—			94
Income tax expense	30			10									40
Equity in net income (loss) from affiliated companies	(15		)	—			67			(52		)	—
Net Income (loss)	64			(4		)	46			(52		)	54
Less: Net income attributable to noncontrolling interests	—			8			—			—			8
Net income (loss) attributable to Tenneco Inc.	$	64		$	(12	)	$	46		$	(52	)	$	46
Comprehensive income (loss) attributable to Tenneco Inc.	$	65		$	(16	)	$	46		$	(52	)	$	43

STATEMENT OF COMPREHENSIVE INCOME (LOSS)

	For the Three Months Ended March 31, 2013
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
Revenues
Net sales and operating revenues —
External	$	852		$	1,051		$	—		$	—		$	1,903
Affiliated companies	79			150			—			(229		)	—
	931			1,201			—			(229		)	1,903
Costs and expenses
Cost of sales (exclusive of depreciation and amortization shown below)	742			1,091			—			(229		)	1,604
Engineering, research, and development	15			20			—			—			35
Selling, general, and administrative	53			64			2			—			119
Depreciation and amortization of other intangibles	19			31			—			—			50
	829			1,206			2			(229		)	1,808
Other income (expense)
Loss on sale of receivables	—			(1		)	—			—			(1		)
Other income (expense)	(1		)	—			—			—			(1		)
	(1		)	(1		)	—			—			(2		)
Earnings before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies	101			(6		)	(2		)	—			93
Interest expense —
External (net of interest capitalized)	—			1			19			—			20
Affiliated companies (net of interest income)	18			(19		)	1			—			—
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies	83			12			(22		)	—			73
Income tax expense	6			6			—			—			12
Equity in net income (loss) from affiliated companies	(5		)	—			76			(71		)	—
Net income (loss)	72			6			54			(71		)	61
Less: Net income attributable to noncontrolling interests	—			7			—			—			7
Net income (loss) attributable to Tenneco Inc.	$	72		$	(1	)	$	54		$	(71	)	$	54
Comprehensive income (loss) attributable to Tenneco Inc.	$	67		$	(18	)	$	54		$	(71	)	$	32

Balance Sheet

BALANCE SHEET

	March 31, 2014
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
ASSETS
Current assets:
Cash and cash equivalents	$	2		$	265		$	—		$	—		$	267
Restricted cash	—			6			—			—			6
Receivables, net	593			1,464			16			(785		)	1,288
Inventories	314			423			—			—			737
Deferred income taxes	88			—			7			(24		)	71
Prepayments and other	41			217			1			—			259
Total current assets	1,038			2,375			24			(809		)	2,628
Other assets:
Investment in affiliated companies	926			—			768			(1,694		)	—
Notes and advances receivable from affiliates	1,030			8,124			5,004			(14,158		)	—
Long-term receivables, net	12			2			—			—			14
Goodwill	22			47			—			—			69
Intangibles, net	12			17			—			—			29
Deferred income taxes	61			9			47			—			117
Other	45			61			22			—			128
	2,108			8,260			5,841			(15,852		)	357
Plant, property, and equipment, at cost	1,187			2,358			—			—			3,545
Less — Accumulated depreciation and amortization	(817		)	(1,534		)	—			—			(2,351		)
	370			824			—			—			1,194
Total assets	$	3,516		$	11,459		$	5,865		$	(16,661	)	$	4,179
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt (including current maturities of long-term debt)
Short-term debt — non-affiliated	$	—		$	91		$	15		$	—		$	106
Short-term debt — affiliated	217			336			10			(563		)	—
Trade payables	539			1,066			—			(175		)	1,430
Accrued taxes	9			35			—			—			44
Other	134			298			13			(71		)	374
Total current liabilities	899			1,826			38			(809		)	1,954
Long-term debt — non-affiliated	—			7			1,202			—			1,209
Long-term debt — affiliated	1,878			8,145			4,135			(14,158		)	—
Deferred income taxes	—			29			—			—			29
Postretirement benefits and other liabilities	339			86			(1		)	5			429
Commitments and contingencies
Total liabilities	3,116			10,093			5,374			(14,962		)	3,621
Redeemable noncontrolling interests	—			25			—			—			25
Tenneco Inc. shareholders’ equity	400			1,299			491			(1,699		)	491
Noncontrolling interests	—			42			—			—			42
Total equity	400			1,341			491			(1,699		)	533
Total liabilities, redeemable noncontrolling interests and equity	$	3,516		$	11,459		$	5,865		$	(16,661	)	$	4,179

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
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		)	—
Trade payables	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

Statement of Cash Flows

STATEMENT OF CASH FLOWS

	Three Months Ended March 31, 2014
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims		Consolidated
	(Millions)
Operating Activities
Net cash provided (used) by operating activities	$	(208	)	$	90		$	(22	)	$	—	$	(140	)
Investing Activities
Cash payments for plant, property, and equipment	(25		)	(58		)	—			—		(83		)
Cash payments for software related intangible assets	(4		)	(3		)	—			—		(7		)
Changes in restricted cash	—			(1		)	—			—		(1		)
Net cash used by investing activities	(29		)	(62		)	—			—		(91		)
Financing Activities
Issuance (repurchase) of common shares	—			—			(2		)	—		(2		)
Tax benefit from stock-based compensation	—			—			12			—		12
Retirement of long-term debt	—			—			(3		)	—		(3		)
Increase (decrease) in bank overdrafts	—			4						—		4
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivables	—			24			173			—		197
Net increase (decrease) in short-term borrowings secured by accounts receivables	—			—			20			—		20
Intercompany dividends and net increase (decrease) in intercompany obligations	233			(55		)	(178		)	—		—
Capital contribution from noncontrolling interest partners	—			1			—			—		1
Net cash provided (used) by financing activities	233			(26		)	22			—		229
Effect of foreign exchange rate changes on cash and cash equivalents	—			(6		)	—			—		(6		)
Increase (decrease) in cash and cash equivalents	(4		)	(4		)	—			—		(8		)
Cash and cash equivalents, January 1	6			269			—			—		275
Cash and cash equivalents, March 31 (Note)	$	2		$	265		$	—		$	—	$	267

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

	Three Months Ended March 31, 2013
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims		Consolidated
	(Millions)
Operating Activities
Net cash provided (used) by operating activities	$	(102	)	$	15		$	(5	)	$	—	$	(92	)
Investing Activities
Proceeds from sale of assets	—			2			—			—		2
Cash payments for plant, property, and equipment	(32		)	(38		)	—			—		(70		)
Cash payments for software related intangible assets	(3		)	(3		)	—			—		(6		)
Changes in restricted cash	—			(9		)						(9		)
Net cash used by investing activities	(35		)	(48		)	—			—		(83		)
Financing Activities
Issuance of common shares	—			—			1			—		1
Retirement of long-term debt	—			—			(5		)	—		(5		)
Increase (decrease) in bank overdrafts	—			(9		)	—			—		(9		)
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt	—			3			188			—		191
Intercompany dividends and net increase (decrease) in intercompany obligations	137			42			(179		)	—		—
Net cash provided by financing activities	137			36			5			—		178
Effect of foreign exchange rate changes on cash and cash equivalents	—			7			—			—		7
Increase (decrease) in cash and cash equivalents	—			10			—			—		10
Cash and cash equivalents, January 1	4			219			—			—		223
Cash and cash equivalents, March 31 (Note)	$	4		$	229		$	—		$	—	$	233

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