Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2014
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
Revenues
Net sales and operating revenues —
External	$	934		$	1,147		$	—		$	—		$	2,081
Affiliated companies	97			153			—			(250		)	—
	1,031			1,300			—			(250		)	2,081
Costs and expenses
Cost of sales (exclusive of depreciation and amortization shown below)	789			1,196			—			(250		)	1,735
Engineering, research, and development	20			22			—			—			42
Selling, general, and administrative	33			74			1			—			108
Depreciation and amortization of other intangibles	22			30			—			—			52
	864			1,322			1			(250		)	1,937
Other income (expense)
Loss on sale of receivables	—			(1		)	—			—			(1		)
Other income (loss)	(2		)	11			—			(12		)	(3		)
	(2		)	10			—			(12		)	(4		)
Earnings (loss) before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies	165			(12		)	(1		)	(12		)	140
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	147			6			(21		)	(12		)	120
Income tax expense (benefit)	34			(3		)	—			—			31
Equity in net income (loss) from affiliated companies	(2		)	—			99			(97		)	—
Net Income (loss)	111			9			78			(109		)	89
Less: Net income attributable to noncontrolling interests	—			11			—			—			11
Net income (loss) attributable to Tenneco Inc.	$	111		$	(2	)	$	78		$	(109	)	$	78
Comprehensive income (loss) attributable to Tenneco Inc.	$	111		$	(2	)	$	20		$	(109	)	$	20

STATEMENT OF COMPREHENSIVE INCOME (LOSS)

	For the Three Months Ended September 30, 2013
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
Revenues
Net sales and operating revenues —
External	$	864		$	1,099		$	—		$	—		$	1,963
Affiliated companies	89			139			—			(228		)	—
	953			1,238			—			(228		)	1,963
Costs and expenses
Cost of sales (exclusive of depreciation and amortization shown below)	827			1,093			—			(229		)	1,691
Engineering, research, and development	16			19			—			—			35
Selling, general, and administrative	42			68			2			—			112
Depreciation and amortization of other intangibles	20			31			—			—			51
	905			1,211			2			(229		)	1,889
Other income (expense)
Loss on sale of receivables	—			(1		)	—			—			(1		)
Other income (expense)	6			2			—			(9		)	(1		)
	6			1			—			(9		)	(2		)
Earnings before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies	54			28			(2		)	(8		)	72
Interest expense —
External (net of interest capitalized)	—			1			19			—			20
Affiliated companies (net of interest income)	17			(17		)	—			—			—
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies	37			44			(21		)	(8		)	52
Income tax expense (benefit)	(12		)	42			—			—			30
Equity in net income (loss) from affiliated companies	(10		)	—			33			(23		)	—
Net income (loss)	39			2			12			(31		)	22
Less: Net income attributable to noncontrolling interests	—			10			—			—			10
Net income (loss) attributable to Tenneco Inc.	$	39		$	(8	)	$	12		$	(31	)	$	12
Comprehensive income (loss) attributable to Tenneco Inc.	$	50		$	7		$	38		$	(57	)	$	38

STATEMENT OF COMPREHENSIVE INCOME (LOSS)

	For the Nine Months Ended September 30, 2014
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
Revenues
Net sales and operating revenues —
External	$	2,861		$	3,555		$	—		$	—		$	6,416
Affiliated companies	303			458			—			(761		)	—
	3,164			4,013			—			(761		)	6,416
Costs and expenses
Cost of sales (exclusive of depreciation and amortization shown below)	2,566			3,535			—			(761		)	5,340
Engineering, research, and development	60			66			—			—			126
Selling, general, and administrative	139			235			5			—			379
Depreciation and amortization of other intangibles	64			91			—			—			155
	2,829			3,927			5			(761		)	6,000
Other income (expense)
Loss on sale of receivables	—			(3		)	—			—			(3		)
Other income (expense)	23			11			—			(38		)	(4		)
	23			8			—			(38		)	(7		)
Earnings before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies	358			94			(5		)	(38		)	409
Interest expense —
External (net of interest capitalized)	(1		)	2			57						58
Affiliated companies (net of interest income)	55			(56		)	1			—			—
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies	304			148			(63		)	(38		)	351
Income tax expense	70			47			—			—			117
Equity in net income (loss) from affiliated companies	66			—			268			(334		)	—
Net income (loss)	300			101			205			(372		)	234
Less: Net income attributable to noncontrolling interests	—			29			—			—			29
Net income (loss) attributable to Tenneco Inc.	$	300		$	72		$	205		$	(372	)	$	205
Comprehensive income (loss) attributable to Tenneco Inc.	$	300		$	72		$	153		$	(372	)	$	153

STATEMENT OF COMPREHENSIVE INCOME (LOSS)

	For the Nine Months Ended September 30, 2013
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
Revenues
Net sales and operating revenues —
External	$	2,620		$	3,313		$	—		$	—		$	5,933
Affiliated companies	260			430			—			(690		)	—
	2,880			3,743			—			(690		)	5,933
Costs and expenses
Cost of sales (exclusive of depreciation and amortization shown below)	2,345			3,376			—			(690		)	5,031
Engineering, research, and development	45			58			—			—			103
Selling, general, and administrative	140			192			5			—			337
Depreciation and amortization of other intangibles	58			93			—			—			151
	2,588			3,719			5			(690		)	5,622
Other income (expense)
Loss on sale of receivables	—			(3		)	—			—			(3		)
Other income (expense)	39			7			—			(48		)	(2		)
	39			4			—			(48		)	(5		)
Earnings before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies	331			28			(5		)	(48		)	306
Interest expense —
External (net of interest capitalized)	(1		)	3			58			—			60
Affiliated companies (net of interest income)	53			(54		)	1			—			—
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies	279			79			(64		)	(48		)	246
Income tax expense	34			55			—			—			89
Equity in net income (loss) from affiliated companies	(13		)	—			193			(180		)	—
Net income (loss)	232			24			129			(228		)	157
Less: Net income attributable to noncontrolling interests	—			28			—			—			28
Net income (loss) attributable to Tenneco Inc.	$	232		$	(4	)	$	129		$	(228	)	$	129
Comprehensive income (loss) attributable to Tenneco Inc.	$	243		$	(29	)	$	115		$	(214	)	$	115

Balance Sheet

BALANCE SHEET

	September 30, 2014
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	275		$	—		$	—		$	275
Restricted cash	—			5			—			—			5
Receivables, net	548			1,377			—			(660		)	1,265
Inventories	333			422			—			—			755
Deferred income taxes	43			27			7			—			77
Prepayments and other	52			216			—			—			268
Total current assets	976			2,322			7			(660		)	2,645
Other assets:
Investment in affiliated companies	997			—			959			(1,956		)	—
Notes and advances receivable from affiliates	962			9,836			4,921			(15,719		)	—
Long-term receivables, net	11			2			—			—			13
Goodwill	22			44			—			—			66
Intangibles, net	11			16			—			—			27
Deferred income taxes	63			8			59			—			130
Other	43			57			20			—			120
	2,109			9,963			5,959			(17,675		)	356
Plant, property, and equipment, at cost	1,221			2,316			—			—			3,537
Less — Accumulated depreciation and amortization	(834		)	(1,472		)	—			—			(2,306		)
	387			844			—			—			1,231
Total assets	$	3,472		$	13,129		$	5,966		$	(18,335	)	$	4,232
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt (including current maturities of long-term debt)
Short-term debt — non-affiliated	$	—		$	96		$	15					$	111
Short-term debt — affiliated	134			300			10			(444		)	—
Trade payables	558			1,007			—			(154		)	1,411
Accrued taxes	(17		)	22			45			—			50
Other	128			291			14			(62		)	371
Total current liabilities	803			1,716			84			(660		)	1,943
Long-term debt — non-affiliated	—			53			1,134			—			1,187
Long-term debt — affiliated	1,800			9,783			4,136			(15,719		)	—
Deferred income taxes	—			27			—			—			27
Postretirement benefits and other liabilities	326			70			(1		)	4			399
Commitments and contingencies
Total liabilities	2,929			11,649			5,353			(16,375		)	3,556
Redeemable noncontrolling interests	—			28			—			—			28
Tenneco Inc. shareholders’ equity	543			1,417			613			(1,960		)	613
Noncontrolling interests	—			35			—			—			35
Total equity	543			1,452			613			(1,960		)	648
Total liabilities, redeemable noncontrolling interests and equity	$	3,472		$	13,129		$	5,966		$	(18,335	)	$	4,232

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 September 30, 2014
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims		Consolidated
	(Millions)
Operating Activities
Net cash provided (used) by operating activities	$	86		$	42		$	(13	)	$	—	$	115
Investing Activities
Proceeds from sale of assets	—			1			—			—		1
Cash payments for plant, property, and equipment	(31		)	(64		)	—			—		(95		)
Cash payments for software related intangible assets	(2		)	(1		)	—			—		(3		)
Net cash used by investing activities	(33		)	(64		)	—			—		(97		)
Financing Activities
Tax benefit from stock-based compensation	—			—			1			—		1
Retirement of long-term debt	—			—			(6		)	—		(6		)
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	—			22			(42		)	—		(20		)
Net increase (decrease) in short-term borrowings secured by accounts receivables	—			—			30			—		30
Intercompany dividend payments and net increase (decrease) in intercompany obligations	(53		)	23			30			—		—
Net cash provided (used) by financing activities	(53		)	41			13			—		1
Effect of foreign exchange rate changes on cash and cash equivalents	—			(4		)	—			—		(4		)
Increase (decrease) in cash and cash equivalents	—			15			—			—		15
Cash and cash equivalents, July 1	—			260			—			—		260
Cash and cash equivalents, September 30 (Note)	$	—		$	275		$	—		$	—	$	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

	Three Months Ended September 30, 2013
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
Operating Activities
Net cash provided (used) by operating activities	$	21		$	25		$	13		$	(9	)	$	50
Investing Activities
Proceeds from sale of assets	—			4			—			—			4
Cash payments for plant, property, and equipment	(21		)	(33		)	—			—			(54		)
Cash payments for software related intangible assets	(6		)	(1		)	—			—			(7		)
Net cash used by investing activities	(27		)	(30		)	—			—			(57		)
Financing Activities
Issuance of common shares	—			—			4			—			4
Tax benefit from stock-based compensation	17			—			—			—			17
Retirement of long-term debt	—			(1		)	(4		)	—			(5		)
Purchase of common stock under the share repurchase program	—			—			(18		)	—			(18		)
Increase (decrease) in bank overdrafts	(40		)	2			—			—			(38		)
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt	—			12			72			—			84
Intercompany dividend payments and net increase (decrease) in intercompany obligations	31			27			(67		)	9			—
Distributions to noncontrolling interest partners	—			(6		)	—			—			(6		)
Net cash provided (used) by financing activities	8			34			(13		)	9			38
Effect of foreign exchange rate changes on cash and cash equivalents	—			10			—			—			10
Increase (decrease) in cash and cash equivalents	2			39			—			—			41
Cash and cash equivalents, July 1	1			234			—			—			235
Cash and cash equivalents, September 30 (Note)	$	3		$	273		$	—		$	—		$	276

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

	For the Nine Months Ended September 30, 2014
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
Operating Activities
Net cash provided (used) by operating activities	$	(70	)	$	212		$	(27	)	$	(26	)	$	89
Investing Activities
Proceeds from sale of assets	—			1			—			—			1
Cash payments for plant, property, and equipment	(78		)	(184		)	—			—			(262		)
Cash payments for software related intangible assets	(8		)	(4		)	—			—			(12		)
Net cash used by investing activities	(86		)	(187		)	—			—			(273		)
Financing Activities
Issuance (Repurchase) of common and treasury shares	—			—			(1		)	—			(1		)
Tax benefit from stock-based compensation	—			—			18			—			18
Retirement of long-term debt	—			—			(16		)				(16		)
Issuance of long-term debt	—			45			—			—			45
Increase (decrease) in bank overdrafts	—			(5		)	—			—			(5		)
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	—			29			118			—			147
Net increase (decrease) in short-term borrowings secured by accounts receivables	—			—			20			—			20
Intercompany dividend payments and net increase (decrease) in intercompany obligations	150			(64		)	(112		)	26			—
Capital contribution from noncontrolling interest partners	—			5			—			—			5
Distributions to noncontrolling interest partners	—			(23		)				—			(23		)
Net cash provided (used) by financing activities	150			(13		)	27			26			190
Effect of foreign exchange rate changes on cash and cash equivalents	—			(6		)	—			—			(6		)
Increase (decrease) in cash and cash equivalents	(6		)	6			—			—			—
Cash and cash equivalents, January 1	6			269			—			—			275
Cash and cash equivalents, September 30 (Note)	$	—		$	275		$	—		$	—		$	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

	Nine Months Ended September 30, 2013
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
Operating Activities
Net cash provided (used) by operating activities	$	6		$	153		$	(19	)	$	(49	)	$	91
Investing Activities
Proceeds from sale of assets	1			5			—			—			6
Cash payments for plant, property, and equipment	(76		)	(102		)	—			—			(178		)
Cash payments for software related intangible assets	(15		)	(4		)	—			—			(19		)
Changes in restricted cash	—			(5		)	—			—			(5		)
Net cash used by investing activities	(90		)	(106		)	—			—			(196		)
Financing Activities
Issuance of common and treasury shares	—			—			17			—			17
Tax benefit from stock-based compensation	17			—			—			—			17
Retirement of long-term debt	—			(2		)	(11		)	—			(13		)
Purchase of common stock under the share repurchase program	—			—			(20		)	—			(20		)
Increase (decrease) in bank overdrafts	—			(3		)	—			—			(3		)
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt	—			22			169			—			191
Intercompany dividend payments and net increase (decrease) in intercompany obligations	66			21			(136		)	49			—
Distributions to noncontrolling interest partners	—			(29		)	—			—			(29		)
Net cash provided by financing activities	83			9			19			49			160
Effect of foreign exchange rate changes on cash and cash equivalents	—			(2		)	—			—			(2		)
Increase (decrease) in cash and cash equivalents	(1		)	54			—			—			53
Cash and cash equivalents, January 1	4			219			—			—			223
Cash and cash equivalents, September 30 (Note)	$	3		$	273		$	—		$	—		$	276

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