Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Statement of Comprehensive Income (Loss)

STATEMENT OF COMPREHENSIVE INCOME (LOSS)

	Three Months Ended March 31, 2016
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
Revenues
Net sales and operating revenues —
External	$	996		$	1,140		$	—		$	—		$	2,136
Affiliated companies	127			190			—			(317		)	—
	1,123			1,330			—			(317		)	2,136
Costs and expenses
Cost of sales (exclusive of depreciation and amortization shown below)	949			1,138			—			(317		)	1,770
Engineering, research, and development	20			19			—			—			39
Selling, general, and administrative	68			79			—			—			147
Depreciation and amortization of other intangibles	21			33			—			—			54
	1,058			1,269			—			(317		)	2,010
Other income (expense)
Loss on sale of receivables	—			(1		)	—			—			(1		)
Other income (expense)	(6		)	5			—			—			(1		)
	(6		)	4			—			—			(2		)
Earnings before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies	59			65			—			—			124
Interest expense —
External (net of interest capitalized)	—			—			18			—			18
Affiliated companies (net of interest income)	(3		)	2			1			—			—
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies	62			63			(19		)	—			106
Income tax expense	13			21			—			—			34
Equity in net income (loss) from affiliated companies	27			—			76			(103		)	—
Net Income (loss)	76			42			57			(103		)	72
Less: Net income attributable to noncontrolling interests	—			15			—			—			15
Net income (loss) attributable to Tenneco Inc.	$	76		$	27		$	57		$	(103	)	$	57
Comprehensive income (loss) attributable to Tenneco Inc.	$	76		$	27		$	84		$	(103	)	$	84

STATEMENT OF COMPREHENSIVE INCOME (LOSS)

	Three Months Ended March 31, 2015
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
Revenues
Net sales and operating revenues —
External	$	897		$	1,126		$	—		$	—		$	2,023
Affiliated companies	106			145			—			(251		)	—
	1,003			1,271			—			(251		)	2,023
Costs and expenses
Cost of sales (exclusive of depreciation and amortization shown below)	842			1,095			—			(251		)	1,686
Engineering, research, and development	21			20			—			—			41
Selling, general, and administrative	46			77			2			—			125
Depreciation and amortization of other intangibles	22			28			—			—			50
	931			1,220			2			(251		)	1,902
Other income (expense)
Loss on sale of receivables	—			(1		)	—			—			(1		)
Other income (expense)	(4		)	4			—			—			—
	(4		)	3			—			—			(1		)
Earnings (loss) before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies	68			54			(2		)	—			120
Interest expense —
External (net of interest capitalized)	—			—			16			—			16
Affiliated companies (net of interest income)	17			(17		)	—			—			—
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies	51			71			(18		)	—			104
Income tax expense	18			23			—			—			41
Equity in net income (loss) from affiliated companies	30			—			67			(97		)	—
Net income (loss)	63			48			49			(97		)	63
Less: Net income attributable to noncontrolling interests	—			14			—			—			14
Net income (loss) attributable to Tenneco Inc.	$	63		$	34		$	49		$	(97	)	$	49
Comprehensive income (loss) attributable to Tenneco Inc.	$	63		$	34		$	(20	)	$	(97	)	$	(20	)

Balance Sheet

BALANCE SHEET

	March 31, 2016
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)		Reclass & Elims			Consolidated
	(Millions)
ASSETS
Current assets:
Cash and cash equivalents	$	4		$	370		$	—	$	—		$	374
Restricted cash	—			2			—		—			2
Receivables, net	503			1,334			—		(551		)	1,286
Inventories	354			392			—		—			746
Prepayments and other	73			181			—		—			254
Total current assets	934			2,279			—		(551		)	2,662
Other assets:
Investment in affiliated companies	1,136			—			1,005		(2,141		)	—
Notes and advances receivable from affiliates	952			14,112			4,954		(20,018		)	—
Long-term receivables, net	10			1			—		—			11
Goodwill	22			37			—		—			59
Intangibles, net	9			12			—		—			21
Deferred income taxes	121			27			66		—			214
Other	42			50			11		—			103
	2,292			14,239			6,036		(22,159		)	408
Plant, property, and equipment, at cost	1,281			2,232			—		—			3,513
Less — Accumulated depreciation and amortization	(856		)	(1,379		)	—		—			(2,235		)
	425			853			—		—			1,278
Total assets	$	3,651		$	17,371		$	6,036	$	(22,710	)	$	4,348
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt (including current maturities of long-term debt)
Short-term debt — non-affiliated	$	—		$	82		$	15	$	—		$	97
Short-term debt — affiliated	121			233			—		(354		)	—
Accounts payable	540			1,058			—		(136		)	1,462
Accrued taxes	14			38			—		—			52
Other	125			231			15		(61		)	310
Total current liabilities	800			1,642			30		(551		)	1,921
Long-term debt — non-affiliated	—			28			1,283		—			1,311
Long-term debt — affiliated	1,732			14,068			4,218		(20,018		)	—
Deferred income taxes	—			9			—		—			9
Postretirement benefits and other liabilities	419			83			—		—			502
Commitments and contingencies
Total liabilities	2,951			15,830			5,531		(20,569		)	3,743
Redeemable noncontrolling interests	—			51			—		—			51
Tenneco Inc. shareholders’ equity	700			1,441			505		(2,141		)	505
Noncontrolling interests	—			49			—		—			49
Total equity	700			1,490			505		(2,141		)	554
Total liabilities, redeemable noncontrolling interests and equity	$	3,651		$	17,371		$	6,036	$	(22,710	)	$	4,348

BALANCE SHEET

	December 31, 2015
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)		Reclass & Elims			Consolidated
	(Millions)
ASSETS
Current assets:
Cash and cash equivalents	$	2		$	285		$	—	$	—		$	287
Restricted cash	—			1			—		—			1
Receivables, net	299			1,241			—		(428		)	1,112
Inventories	333			349			—		—			682
Prepayments and other	67			162			—		—			229
Total current assets	701			2,038			—		(428		)	2,311
Other assets:
Investment in affiliated companies	1,146			—			891		(2,037		)	—
Notes and advances receivable from affiliates	938			13,291			4,788		(19,017		)	—
Long-term receivables, net	11			2			—		—			13
Goodwill	22			38			—		—			60
Intangibles, net	9			13			—		—			22
Deferred income taxes	122			28			68		—			218
Other	42			47			11		—			100
	2,290			13,419			5,758		(21,054		)	413
Plant, property, and equipment, at cost	1,281			2,137			—		—			3,418
Less — Accumulated depreciation and amortization	(851		)	(1,324		)	—		—			(2,175		)
	430			813			—		—			1,243
Total assets	$	3,421		$	16,270		$	5,758	$	(21,482	)	$	3,967
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt (including current maturities of long-term debt)
Short-term debt — non-affiliated	$	—		$	73		$	13	$	—		$	86
Short-term debt — affiliated	164			147			—		(311		)	—
Accounts payable	484			955			—		(63		)	1,376
Accrued taxes	6			31			—		—			37
Other	125			221			3		(54		)	295
Total current liabilities	779			1,427			16		(428		)	1,794
Long-term debt — non-affiliated	—			21			1,103		—			1,124
Long-term debt — affiliated	1,583			13,226			4,208		(19,017		)	—
Deferred income taxes	—			7			—		—			7
Postretirement benefits and other liabilities	424			100			—		—			524
Commitments and contingencies
Total liabilities	2,786			14,781			5,327		(19,445		)	3,449
Redeemable noncontrolling interests	—			43			—		—			43
Tenneco Inc. shareholders’ equity	635			1,404			433		(2,039		)	433
Noncontrolling interests	—			42			—		—			42
Total equity	635			1,446			433		(2,039		)	475
Total liabilities, redeemable noncontrolling interests and equity	$	3,421		$	16,270		$	5,760	$	(21,484	)	$	3,967

Statement of Cash Flows

STATEMENT OF CASH FLOWS

	Three Months Ended March 31, 2016
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims		Consolidated
	(Millions)
Operating Activities
Net cash provided (used) by operating activities	$	(212	)	$	180		$	3		$	—	$	(29	)
Investing Activities
Proceeds from sale of assets	—			1			—			—		1
Cash payments for plant, property, and equipment	(13		)	(55		)	—			—		(68		)
Cash payments for software related intangible assets	(2		)	(4		)	—			—		(6		)
Changes in restricted cash	—			(1		)	—			—		(1		)
Net cash used by investing activities	(15		)	(59		)	—			—		(74		)
Financing Activities
Issuance of common shares	—			—			(2		)	—		(2		)
Retirement of long-term debt	—			—			(4		)	—		(4		)
Issuance of long-term debt	—			5			—			—		5
Purchase of common stock under the share repurchase program	—			—			(16		)	—		(16		)
Net decrease in bank overdrafts	—			7			—			—		7
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt	—			8			185			—		193
Intercompany dividend payments and net increase (decrease) in intercompany obligations	229			(63		)	(166		)	—		—
Net cash provided (used) by financing activities	229			(43		)	(3		)	—		183
Effect of foreign exchange rate changes on cash and cash equivalents	—			7			—			—		7
Increase in cash and cash equivalents	2			85			—			—		87
Cash and cash equivalents, January 1	2			285			—			—		287
Cash and cash equivalents, March 31 (Note)	$	4		$	370		$	—		$	—	$	374

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, 2015
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims		Consolidated
	(Millions)
Operating Activities
Net cash provided (used) by operating activities	$	(74	)	$	26		$	(2	)	$	—	$	(50	)
Investing Activities
Proceeds from sale of assets	—			1			—			—		1
Cash payments for plant, property, and equipment	(27		)	(50		)	—			—		(77		)
Cash payments for software related intangible assets	(2		)	(3		)	—			—		(5		)
Changes in restricted cash	—			3								3
Net cash used by investing activities	(29		)	(49		)	—			—		(78		)
Financing Activities
Tax impact from stock-based compensation	—			—			3			—		3
Retirement of long-term debt	—			—			(4		)	—		(4		)
Purchase of common stock under the share repurchase program	—			—			(11		)	—		(11		)
Net decrease in bank overdrafts	—			(8		)	—			—		(8		)
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	—			64			47			—		111
Net increase in short-term borrowings secured by accounts receivable	—			—			50			—		50
Intercompany dividend payments and net increase (decrease) in intercompany obligations	93			(10		)	(83		)	—		—
Net cash provided by financing activities	93			46			2			—		141
Effect of foreign exchange rate changes on cash and cash equivalents	—			(7		)	—			—		(7		)
Increase (decrease) in cash and cash equivalents	(10		)	16			—			—		6
Cash and cash equivalents, January 1	10			272			—			—		282
Cash and cash equivalents, March 31 (Note)	$	—		$	288		$	—		$	—	$	288

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