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Supplemental Guarantor Condensed Consolidating Financial Statements
6 Months Ended
Jun. 30, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Supplemental Guarantor Condensed Consolidating Financial Statements
Supplemental Guarantor Condensed Consolidating Financial Statements
Basis of Presentation
Substantially all of our existing and future material domestic 100% owned subsidiaries (which are referred to as the Guarantor Subsidiaries) fully and unconditionally guarantee our senior notes due in 2024 and 2026 on a joint and several basis. However, a subsidiary’s guarantee may be released in certain customary circumstances such as a sale of the subsidiary or all or substantially all of its assets in accordance with the indenture applicable to the notes. The Guarantor Subsidiaries are combined in the presentation below.
These consolidating financial statements are presented on the equity method. Under this method, our investments are recorded at cost and adjusted for our ownership share of a subsidiary’s cumulative results of operations, capital contributions and distributions, and other equity changes. You should read the condensed consolidating financial information of the Guarantor Subsidiaries in connection with our condensed consolidated financial statements and related notes of which this note is an integral part.
The accompanying supplemental guarantor condensed consolidating financial statements have been updated to reflect the revision as described in Note 14.
Distributions
There are no significant restrictions on the ability of the Guarantor Subsidiaries to make distributions to us.
STATEMENT OF COMPREHENSIVE INCOME (LOSS)
 
Three Months Ended June 30, 2017
 
Guarantor
Subsidiaries
 
Nonguarantor
Subsidiaries
 
Tenneco Inc.
(Parent
Company)
 
Reclass &
Elims
 
Consolidated
 
(Millions)
Revenues
 
 
 
 
 
 
 
 
 
Net sales and operating revenues —
 
 
 
 
 
 
 
 
 
External
$
1,023

 
$
1,294

 
$
—

 
$
—

 
$
2,317

Affiliated companies
141

 
172

 
—

 
(313
)
 
—

 
1,164

 
1,466

 
—

 
(313
)
 
2,317

Costs and expenses
 
 
 
 
 
 
 
 
 
Cost of sales (exclusive of depreciation and amortization shown below)
988

 
1,271

 
—

 
(313
)
 
1,946

Engineering, research, and development
19

 
17

 
—

 
—

 
36

Selling, general, and administrative
184

 
69

 
—

 
—

 
253

Depreciation and amortization of other intangibles
21

 
34

 
—

 
—

 
55

 
1,212

 
1,391

 
—

 
(313
)
 
2,290

Other income (expense)
 
 
 
 
 
 
 
 
 
Loss on sale of receivables
(1
)
 
—

 
—

 
—

 
(1
)
Other income (expense)
8

 
8

 
—

 
(15
)
 
1

 
7

 
8

 
—

 
(15
)
 
—

Earnings (loss) before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies
(41
)
 
83

 
—

 
(15
)
 
27

Interest expense —
 
 
 
 
 
 
 
 
 
External (net of interest capitalized)
3

 
2

 
15

 
—

 
20

Affiliated companies (net of interest income)
(4
)
 
2

 
2

 
—

 
—

Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies
(40
)
 
79

 
(17
)
 
(15
)
 
7

Income tax (benefit) expense
3

 
(11
)
 
—

 
—

 
(8
)
Equity in net income (loss) from affiliated companies
60

 
—

 
14

 
(74
)
 
—

Net income (loss)
17

 
90

 
(3
)
 
(89
)
 
15

Less: Net income attributable to noncontrolling interests
—

 
18

 
—

 
—

 
18

Net income (loss) attributable to Tenneco Inc.
$
17

 
$
72

 
$
(3
)
 
$
(89
)
 
$
(3
)
Comprehensive income (loss) attributable to Tenneco Inc.
$
17

 
$
72

 
$
33

 
$
(89
)
 
$
33


STATEMENT OF COMPREHENSIVE INCOME (LOSS)
 
Three Months Ended June 30, 2016
 
Guarantor
Subsidiaries
 
Nonguarantor
Subsidiaries
 
Tenneco Inc.
(Parent
Company)
 
Reclass &
Elims
 
Consolidated
 
(Millions)
Revenues
 
 
 
 
 
 
 
 
 
Net sales and operating revenues —
 
 
 
 
 
 
 
 
 
External
$
1,005

 
$
1,207

 
$
—

 
$
—

 
$
2,212

Affiliated companies
128

 
196

 
—

 
(324
)
 
—

 
1,133

 
1,403

 
—

 
(324
)
 
2,212

Costs and expenses
 
 
 
 
 
 
 
 
 
Cost of sales (exclusive of depreciation and amortization shown below)
946

 
1,194

 
—

 
(324
)
 
1,816

Engineering, research, and development
19

 
18

 
—

 
—

 
37

Selling, general, and administrative
58

 
75

 
1

 
—

 
134

Depreciation and amortization of other intangibles
21

 
31

 
—

 
—

 
52

 
1,044

 
1,318

 
1

 
(324
)
 
2,039

Other income (expense)
 
 
 
 
 
 
 
 
 
Loss on sale of receivables
(1
)
 
—

 
—

 
—

 
(1
)
Other income (expense)
7

 
7

 
—

 
(15
)
 
(1
)
 
6

 
7

 
—

 
(15
)
 
(2
)
Earnings (loss) before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies
95

 
92

 
(1
)
 
(15
)
 
171

Interest expense —
 
 
 
 
 
 
 
 
 
External (net of interest capitalized)
—

 
2

 
32

 
—

 
34

Affiliated companies (net of interest income)
(3
)
 
2

 
1

 
—

 
—

Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies
98

 
88

 
(34
)
 
(15
)
 
137

Income tax expense
24

 
15

 
—

 
—

 
39

Equity in net income (loss) from affiliated companies
57

 
—

 
116

 
(173
)
 
—

Net income (loss)
131

 
73

 
82

 
(188
)
 
98

Less: Net income attributable to noncontrolling interests
—

 
16

 
—

 
—

 
16

Net income (loss) attributable to Tenneco Inc.
$
131

 
$
57

 
$
82

 
$
(188
)
 
$
82

Comprehensive income (loss) attributable to Tenneco Inc.
$
131

 
$
57

 
$
65

 
$
(188
)
 
$
65



STATEMENT OF COMPREHENSIVE INCOME (LOSS)
 
Six Months Ended June 30, 2017
 
Guarantor
Subsidiaries
 
Nonguarantor
Subsidiaries
 
Tenneco Inc.
(Parent
Company)
 
Reclass &
Elims
 
Consolidated
 
(Millions)
Revenues
 
 
 
 
 
 
 
 
 
Net sales and operating revenues —
 
 
 
 
 
 
 
 
 
External
$
2,041

 
$
2,568

 
$
—

 
$
—

 
$
4,609

Affiliated companies
285

 
354

 
—

 
(639
)
 
—

 
2,326

 
2,922

 
—

 
(639
)
 
4,609

Costs and expenses
 
 
 
 
 
 
 
 
 
Cost of sales (exclusive of depreciation and amortization shown below)
1,982

 
2,534

 
—

 
(639
)
 
3,877

Engineering, research, and development
39

 
36

 
—

 
—

 
75

Selling, general, and administrative
259

 
142

 
—

 
—

 
401

Depreciation and amortization of other intangibles
42

 
65

 
—

 
—

 
107

 
2,322

 
2,777

 
—

 
(639
)
 
4,460

Other income (expense)
 
 
 
 
 
 
 
 
 
Loss on sale of receivables
(1
)
 
(1
)
 
—

 
—

 
(2
)
Other income (expense)
—

 
16

 
—

 
(15
)
 
1

 
(1
)
 
15

 
—

 
(15
)
 
(1
)
Earnings (loss) before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies
3

 
160

 
—

 
(15
)
 
148

Interest expense —
 
 
 
 
 
 
 
 
 
External (net of interest capitalized)
3

 
2

 
30

 
—

 
35

Affiliated companies (net of interest income)
(7
)
 
3

 
4

 
—

 
—

Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies
7

 
155

 
(34
)
 
(15
)
 
113

Income tax expense
11

 
14

 
—

 
—

 
25

Equity in net income (loss) from affiliated companies
88

 
—

 
90

 
(178
)
 
—

Net income (loss)
84

 
141

 
56

 
(193
)
 
88

Less: Net income attributable to noncontrolling interests
—

 
32

 
—

 
—

 
32

Net income attributable to Tenneco Inc.
$
84

 
$
109

 
$
56

 
$
(193
)
 
$
56

Comprehensive income (loss) attributable to Tenneco Inc.
$
84

 
$
109

 
$
120

 
$
(193
)
 
$
120


STATEMENT OF COMPREHENSIVE INCOME (LOSS)
 
Six Months Ended June 30, 2016
 
Guarantor
Subsidiaries
 
Nonguarantor
Subsidiaries
 
Tenneco Inc.
(Parent
Company)
 
Reclass &
Elims
 
Consolidated
 
(Millions)
Revenues
 
 
 
 
 
 
 
 
 
Net sales and operating revenues —
 
 
 
 
 
 
 
 
 
External
$
2,001

 
$
2,347

 
$
—

 
$
—

 
$
4,348

Affiliated companies
255

 
386

 
—

 
(641
)
 
—

 
2,256

 
2,733

 
—

 
(641
)
 
4,348

Costs and expenses
 
 
 
 
 
 
 
 
 
Cost of sales (exclusive of depreciation and amortization shown below)
1,896

 
2,331

 
—

 
(641
)
 
3,586

Engineering, research, and development
39

 
37

 
—

 
—

 
76

Selling, general, and administrative
126

 
154

 
1

 
—

 
281

Depreciation and amortization of other intangibles
42

 
64

 
—

 
—

 
106

 
2,103

 
2,586

 
1

 
(641
)
 
4,049

Other income (expense)
 
 
 
 
 
 
 
 
 
Loss on sale of receivables
(1
)
 
(1
)
 
—

 
—

 
(2
)
Other income (expense)
1

 
12

 
—

 
(15
)
 
(2
)
 
—

 
11

 
—

 
(15
)
 
(4
)
Earnings (loss) before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies
153

 
158

 
(1
)
 
(15
)
 
295

Interest expense —
 
 
 
 
 
 
 
 
 
External (net of interest capitalized)
—

 
2

 
50

 
—

 
52

Affiliated companies (net of interest income)
(6
)
 
4

 
2

 
—

 
—

Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies
159

 
152

 
(53
)
 
(15
)
 
243

Income tax expense
37

 
36

 
—

 
—

 
73

Equity in net income (loss) from affiliated companies
85

 
—

 
192

 
(277
)
 
—

Net income (loss)
207

 
116

 
139

 
(292
)
 
170

Less: Net income attributable to noncontrolling interests
—

 
31

 
—

 
—

 
31

Net income (loss) attributable to Tenneco Inc.
$
207

 
$
85

 
$
139

 
$
(292
)
 
$
139

Comprehensive income (loss) attributable to Tenneco Inc.
$
207

 
$
85

 
$
149

 
$
(292
)
 
$
149


BALANCE SHEET
 
June 30, 2017
 
Guarantor
Subsidiaries
 
Nonguarantor
Subsidiaries
 
Tenneco Inc.
(Parent
Company)
 
Reclass &
Elims
 
Consolidated
 
(Millions)
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
4

 
$
329

 
$
—

 
$
—

 
$
333

Restricted cash
—

 
2

 
—

 
—

 
2

Receivables, net
692

 
1,543

 
—

 
(734
)
 
1,501

Inventories
369

 
446

 
—

 
—

 
815

Prepayments and other
84

 
227

 
—

 
—

 
311

Total current assets
1,149

 
2,547

 
—

 
(734
)
 
2,962

Other assets:
 
 
 
 
 
 
 
 
 
Investment in affiliated companies
1,220

 
—

 
1,366

 
(2,586
)
 
—

Notes and advances receivable from affiliates
961

 
17,895

 
4,103

 
(22,959
)
 
—

Long-term receivables, net
8

 
1

 
—

 
—

 
9

Goodwill
22

 
37

 
—

 
—

 
59

Intangibles, net
6

 
12

 
—

 
—

 
18

Deferred income taxes
88

 
28

 
128

 
—

 
244

Other
60

 
50

 
—

 
—

 
110

 
2,365

 
18,023

 
5,597

 
(25,545
)
 
440

Plant, property, and equipment, at cost
1,431

 
2,390

 
—

 
—

 
3,821

Less — Accumulated depreciation and amortization
(917
)
 
(1,425
)
 
—

 
—

 
(2,342
)
 
514

 
965

 
—

 
—

 
1,479

Total assets
$
4,028

 
$
21,535

 
$
5,597

 
$
(26,279
)
 
$
4,881

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Short-term debt (including current maturities of long-term debt)
 
 
 
 
 
 
 
 
 
Short-term debt — non-affiliated
$
—

 
$
92

 
$
15

 
$
—

 
$
107

Short-term debt — affiliated
382

 
152

 
—

 
(534
)
 
—

Accounts payable
622

 
1,104

 
—

 
(118
)
 
1,608

Accrued taxes
61

 
(8
)
 
—

 
—

 
53

Other
277

 
319

 
12

 
(82
)
 
526

Total current liabilities
1,342

 
1,659

 
27

 
(734
)
 
2,294

Long-term debt — non-affiliated
764

 
12

 
714

 
—

 
1,490

Long-term debt — affiliated
784

 
17,934

 
4,241

 
(22,959
)
 
—

Deferred income taxes
—

 
7

 
—

 
—

 
7

Postretirement benefits and other liabilities
274

 
134

 
—

 
—

 
408

Commitments and contingencies

 

 

 

 


Total liabilities
3,164

 
19,746

 
4,982

 
(23,693
)
 
4,199

Redeemable noncontrolling interests
—

 
25

 
—

 
—

 
25

Tenneco Inc. shareholders’ equity
864

 
1,722

 
615

 
(2,586
)
 
615

Noncontrolling interests
—

 
42

 
—

 
—

 
42

Total equity
864

 
1,764

 
615

 
(2,586
)
 
657

Total liabilities, redeemable noncontrolling interests and equity
$
4,028

 
$
21,535

 
$
5,597

 
$
(26,279
)
 
$
4,881

BALANCE SHEET
 
December 31, 2016
 
Guarantor
Subsidiaries
 
Nonguarantor
Subsidiaries
 
Tenneco Inc.
(Parent
Company)
 
Reclass &
Elims
 
Consolidated
 
(Millions)
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
9

 
$
338

 
$
—

 
$
—

 
$
347

Restricted cash
—

 
2

 
—

 
—

 
2

Receivables, net
386

 
1,412

 
—

 
(504
)
 
1,294

Inventories
361

 
369

 
—

 
—

 
730

Prepayments and other
62

 
167

 
—

 
—

 
229

Total current assets
818

 
2,288

 
—

 
(504
)
 
2,602

Other assets:
 
 
 
 
 
 
 
 
 
Investment in affiliated companies
1,213

 
—

 
1,207

 
(2,420
)
 
—

Notes and advances receivable from affiliates
939

 
16,529

 
4,781

 
(22,249
)
 
—

Long-term receivables, net
9

 
—

 
—

 
—

 
9

Goodwill
22

 
35

 
—

 
—

 
57

Intangibles, net
7

 
12

 
—

 
—

 
19

Deferred income taxes
47

 
23

 
129

 
—

 
199

Other
46

 
49

 
8

 
—

 
103

 
2,283

 
16,648

 
6,125

 
(24,669
)
 
387

Plant, property, and equipment, at cost
1,371

 
2,177

 
—

 
—

 
3,548

Less — Accumulated depreciation and amortization
(895
)
 
(1,296
)
 
—

 
—

 
(2,191
)
 
476

 
881

 
—

 
—

 
1,357

Total assets
$
3,577

 
$
19,817

 
$
6,125

 
$
(25,173
)
 
$
4,346

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Short-term debt (including current maturities of long-term debt)
 
 
 
 
 
 
 
 
 
Short-term debt — non-affiliated
$
—

 
$
75

 
$
15

 
$
—

 
$
90

Short-term debt — affiliated
167

 
187

 
—

 
(354
)
 
—

Accounts payable
562

 
1,027

 
—

 
(88
)
 
1,501

Accrued taxes
4

 
35

 
—

 
—

 
39

Other
147

 
243

 
15

 
(62
)
 
343

Total current liabilities
880

 
1,567

 
30

 
(504
)
 
1,973

Long-term debt — non-affiliated
—

 
12

 
1,282

 
—

 
1,294

Long-term debt — affiliated
1,543

 
16,466

 
4,240

 
(22,249
)
 
—

Deferred income taxes
—

 
7

 
—

 
—

 
7

Postretirement benefits and other liabilities
297

 
115

 
—

 
—

 
412

Commitments and contingencies

 

 

 

 

Total liabilities
2,720

 
18,167

 
5,552

 
(22,753
)
 
3,686

Redeemable noncontrolling interests
—

 
40

 
—

 
—

 
40

Tenneco Inc. shareholders’ equity
857

 
1,563

 
573

 
(2,420
)
 
573

Noncontrolling interests
—

 
47

 
—

 
—

 
47

Total equity
857

 
1,610

 
573

 
(2,420
)
 
620

Total liabilities, redeemable noncontrolling interests and equity
$
3,577

 
$
19,817

 
$
6,125

 
$
(25,173
)
 
$
4,346


STATEMENT OF CASH FLOWS
 
Three Months Ended June 30, 2017
 
Guarantor
Subsidiaries
 
Nonguarantor
Subsidiaries
 
Tenneco Inc.
(Parent
Company)
 
Reclass &
Elims
 
Consolidated
 
(Millions)
Operating Activities
 
 
 
 
 
 
 
 
 
Net cash provided (used) by operating activities
$
104

 
$
29

 
$
(7
)
 
$
(7
)
 
$
119

Investing Activities
 
 
 
 
 
 
 
 
 
Proceeds from sale of assets
1

 
2

 
—

 
—

 
3

Proceeds from sale of equity interest
—

 
9

 
—

 
—

 
9

Cash payments for plant, property, and equipment
(39
)
 
(51
)
 
—

 
—

 
(90
)
Cash payments for software related intangible assets
(4
)
 
(2
)
 
—

 
—

 
(6
)
Changes in restricted cash
—

 
1

 
—

 
—

 
1

Other
(4
)
 
—

 
—

 
—

 
(4
)
Net cash used by investing activities
(46
)
 
(41
)
 
—

 
—

 
(87
)
Financing Activities
 
 
 
 
 
 
 
 
 
Cash dividends
—

 
—

 
(13
)
 
—

 
(13
)
Retirement of long-term debt - net
—

 
(2
)
 
—

 
—

 
(2
)
Issuance of long-term debt - net
400

 
—

 
(264
)
 
—

 
136

Debt issuance cost of long-term debt
(8
)
 
—

 
—

 
—

 
(8
)
Purchase of common stock under the share repurchase program
—

 
—

 
(44
)
 
—

 
(44
)
Net increase in bank overdrafts
—

 
(12
)
 
—

 
—

 
(12
)
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt
369

 
(6
)
 
(420
)
 
—

 
(57
)
Intercompany dividend payments and net increase (decrease) in intercompany obligations
(821
)
 
66

 
748

 
7

 
—

Distributions to noncontrolling interest partners
—

 
(33
)
 
—

 
—

 
(33
)
Net cash provided (used) by financing activities
(60
)
 
13

 
7

 
7

 
(33
)
Effect of foreign exchange rate changes on cash and cash equivalents
—

 
(7
)
 
—

 
—

 
(7
)
Decrease in cash and cash equivalents
(2
)
 
(6
)
 
—

 
—

 
(8
)
Cash and cash equivalents, April 1
6

 
335

 
—

 
—

 
341

Cash and cash equivalents, June 30 (Note)
$
4

 
$
329

 
$
—

 
$
—

 
$
333

 
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 June 30, 2016
 
Guarantor
Subsidiaries
 
Nonguarantor
Subsidiaries
 
Tenneco Inc.
(Parent
Company)
 
Reclass &
Elims
 
Consolidated
 
(Millions)
Operating Activities
 
 
 
 
 
 
 
 
 
Net cash provided (used) by operating activities
$
155

 
$
24

 
$
(36
)
 
$
(11
)
 
$
132

Investing Activities
 
 
 
 
 
 
 
 
 
Proceeds from sale of assets
—

 
2

 
—

 
—

 
2

Cash payments for plant, property, and equipment
(30
)
 
(41
)
 
—

 
—

 
(71
)
Cash payments for software related intangible assets
(2
)
 
(1
)
 
—

 
—

 
(3
)
Changes in restricted cash
—

 
(1
)
 
—

 
—

 
(1
)
Net cash used by investing activities
(32
)
 
(41
)
 
—

 
—

 
(73
)
Financing Activities
 
 
 
 
 
 
 
 
 
Issuance of common shares
—

 
—

 
4

 
—

 
4

Retirement of long-term debt - net
—

 
(16
)
 
(328
)
 
—

 
(344
)
Issuance of long-term debt - net
—

 
1

 
500

 
—

 
501

Debt issuance cost of long-term debt
—

 
—

 
(8
)
 
—

 
(8
)
Purchase of common stock under the share repurchase program
—

 
—

 
(41
)
 
—

 
(41
)
Net decrease in bank overdrafts
—

 
(2
)
 
—

 
—

 
(2
)
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
—

 
(18
)
 
(150
)
 
—

 
(168
)
Net decrease in short-term borrowings secured by accounts receivable
—

 
—

 
(30
)
 
—

 
(30
)
Intercompany dividend payments and net increase (decrease) in intercompany obligations
(126
)
 
25

 
90

 
11

 
—

Capital contribution from noncontrolling interest partner
—

 
(27
)
 
—

 
—

 
(27
)
Net cash provided (used) by financing activities
(126
)
 
(37
)
 
37

 
11

 
(115
)
Effect of foreign exchange rate changes on cash and cash equivalents
1

 
(7
)
 
(1
)
 
—

 
(7
)
Decrease in cash and cash equivalents
(2
)
 
(61
)
 
—

 
—

 
(63
)
Cash and cash equivalents, April 1
4

 
370

 
—

 
—

 
374

Cash and cash equivalents, June 30 (Note)
$
2

 
$
309

 
$
—

 
$
—

 
$
311

 
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
 
Six Months Ended June 30, 2017
 
Guarantor
Subsidiaries
 
Nonguarantor
Subsidiaries
 
Tenneco Inc.
(Parent
Company)
 
Reclass
&
Elims
 
Consolidated
 
(Millions)
Operating Activities
 
 
 
 
 
 
 
 
 
Net cash provided (used) by operating activities
$
63

 
$
75

 
$
(21
)
 
$
(7
)
 
$
110

Investing Activities
 
 
 
 
 
 
 
 
 
Proceeds from sale of equity interest
—

 
9

 
—

 
—

 
9

Proceeds from sale of assets
3

 
3

 
—

 
—

 
6

Cash payments for plant, property, and equipment
(81
)
 
(112
)
 
—

 
—

 
(193
)
Cash payments for software related intangible assets
(6
)
 
(6
)
 
—

 
—

 
(12
)
Other
(4
)
 
—

 
—

 
—

 
(4
)
Net cash used by investing activities
(88
)
 
(106
)
 
—

 
—

 
(194
)
Financing Activities
 
 
 
 
 
 
 
 
 
Repurchase of common shares
—

 
—

 
(3
)
 
—

 
(3
)
Cash dividends
—

 
—

 
(26
)
 
—

 
(26
)
Retirement of long-term debt - net
—

 
(2
)
 
(6
)
 
—

 
(8
)
Issuance of long-term debt - net
400

 
—

 
(264
)
 
—

 
136

Debt issuance cost of long-term debt
(8
)
 
—

 
—

 
—

 
(8
)
Purchase of common stock under the share repurchase program
—

 
—

 
(60
)
 
—

 
(60
)
Net decrease in bank overdrafts
—

 
(9
)
 
—

 
—

 
(9
)
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
369

 
14

 
(323
)
 
—

 
60

Net increase in short-term borrowings secured by accounts receivables
—

 
—

 
20

 
—

 
20

Intercompany dividend payments and net increase (decrease) in intercompany obligations
(741
)
 
51

 
683

 
7

 
—

Distributions to noncontrolling interest partners
—

 
(33
)
 
—

 
—

 
(33
)
Net cash provided by financing activities
20

 
21

 
21

 
7

 
69

Effect of foreign exchange rate changes on cash and cash equivalents
—

 
1

 
—

 
—

 
1

Increase (decrease) in cash and cash equivalents
(5
)
 
(9
)
 
—

 
—

 
(14
)
Cash and cash equivalents, January 1
9

 
338

 
—

 
—

 
347

Cash and cash equivalents, June 30 (Note)
$
4

 
$
329

 
$
—

 
$
—

 
$
333


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
 
Six Months Ended June 30, 2016
 
Guarantor
Subsidiaries
 
Nonguarantor
Subsidiaries
 
Tenneco Inc.
(Parent
Company)
 
Reclass
&
Elims
 
Consolidated
 
(Millions)
Operating Activities
 
 
 
 
 
 
 
 
 
Net cash provided (used) by operating activities
$
(57
)
 
$
204

 
$
(33
)
 
$
(11
)
 
$
103

Investing Activities
 
 
 
 
 
 
 
 
 
Proceeds from sale of assets
—

 
3

 
—

 
—

 
3

Cash payments for plant, property, and equipment
(43
)
 
(96
)
 
—

 
—

 
(139
)
Cash payments for software related intangible assets
(4
)
 
(5
)
 
—

 
—

 
(9
)
Changes in restricted cash
—

 
(2
)
 
—

 
—

 
(2
)
Net cash used by investing activities
(47
)
 
(100
)
 
—

 
—

 
(147
)
Financing Activities
 
 
 
 
 
 
 
 
 
Issuance of common shares
—

 
—

 
2

 
—

 
2

Retirement of long-term debt - net
—

 
(16
)
 
(332
)
 
—

 
(348
)
Issuance of long-term debt - net
—

 
6

 
500

 
—

 
506

Debt issuance cost of long-term debt
—

 
—

 
(8
)
 
—

 
(8
)
Purchase of common stock under the share repurchase program
—

 
—

 
(57
)
 
—

 
(57
)
Net decrease 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 receivables
—

 
(10
)
 
35

 
—

 
25

Net increase in short-term borrowings secured by accounts receivables
—

 
—

 
(30
)
 
—

 
(30
)
Intercompany dividend payments and net increase (decrease) in intercompany obligations
103

 
(38
)
 
(76
)
 
11

 
—

Distributions to noncontrolling interest partners
—

 
(27
)
 
—

 
—

 
(27
)
Net cash provided (used) by financing activities
103

 
(80
)
 
34

 
11

 
68

Effect of foreign exchange rate changes on cash and cash equivalents
1

 
—

 
(1
)
 
—

 
—

Decrease in cash and cash equivalents
—

 
24

 
—

 
—

 
24

Cash and cash equivalents, January 1
2

 
285

 
—

 
—

 
287

Cash and cash equivalents, June 30 (Note)
$
2

 
$
309

 
$
—

 
$
—

 
$
311


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