Supplemental Guarantor Condensed Consolidating Financial Statements

12 Months Ended

Dec. 31, 2011

Supplemental Guarantor Condensed Consolidating Financial Statements [Abstract]

Supplemental Guarantor Condensed Consolidating Financial Statements

13. 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 2015, 2018, and 2020 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 consolidated financial statements and related notes of which this note is an integral part.

Distributions

There are no significant restrictions on the ability of the Guarantor Subsidiaries to make distributions to us.

STATEMENT OF 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 (benefit)		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

STATEMENT OF INCOME (LOSS)

	For the Year Ended December 31, 2010
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
Revenues
Net sales and operating revenues —
External	$	2,571		$	3,366		$	—		$	—		$	5,937
Affiliated companies		130			472			—			(602	)		—
		2,701			3,838			—			(602	)		5,937
Costs and expenses
Cost of sales (exclusive of depreciation and amortization shown below)		2,331			3,171			—			(602	)		4,900
Engineering, research, and development		48			69			—			—			117
Selling, general, and administrative		153			261			3			—			417
Depreciation and amortization of other intangibles		86			130			—			—			216
		2,618			3,631			3			(602	)		5,650
Other income (expense)
Loss on sale of receivables		—			(3	)		—			—			(3	)
Other income (expense)		12			1			—			(16	)		(3	)
		12			(2	)		—			(16	)		(6	)
Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income from affiliated companies		95			205			(3	)		(16	)		281
Interest expense —
External (net of interest capitalized)		(2	)		7			144			—			149
Affiliated companies (net of interest income)		186			(54	)		(132	)		—			—
Earnings (loss) before income taxes, noncontrolling interests and equity in net income from affiliated companies		(89	)		252			(15	)		(16	)		132
Income tax expense (benefit)		7			62			—			—			69
Equity in net income (loss) from affiliated companies		154			—			54			(208	)		—
Net income (loss)		58			190			39			(224	)		63
Less: Net income attributable to noncontrolling interests		—			24			—			—			24
Net income (loss) attributable to Tenneco Inc.	$	58		$	166		$	39		$	(224	)	$	39

STATEMENT OF INCOME (LOSS)

	For the Year Ended December 31, 2009
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims			Consolidated
	(Millions)
Revenues
Net sales and operating revenues —
External	$	1,915		$	2,734		$	—		$	—		$	4,649
Affiliated companies		92			399			—			(491	)		—
		2,007			3,133			—			(491	)		4,649
Costs and expenses
Cost of sales (exclusive of depreciation and amortization shown below)		1,836			2,530			—			(491	)		3,875
Engineering, research, and development		36			61			—			—			97
Selling, general, and administrative		105			236			3			—			344
Depreciation and amortization of other intangibles		91			130			—			—			221
		2,068			2,957			3			(491	)		4,537
Other income (expense)
Loss on sale of receivables		—			(9	)		—			—			(9	)
Other income (expense)		(2	)		4			—			(13	)		(11	)
		(2	)		(5	)		—			(13	)		(20	)
Earnings (loss) before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies		(63	)		171			(3	)		(13	)		92
Interest expense —
External (net of interest capitalized)		(1	)		4			130			—			133
Affiliated companies (net of interest income)		140			(15	)		(125	)		—			—
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies		(202	)		182			(8	)		(13	)		(41	)
Income tax expense (benefit)		(1	)		33			(19	)		—			13
Equity in net income (loss) from affiliated companies		124			—			(84	)		(40	)		—
Net income (loss)		(77	)		149			(73	)		(53	)		(54	)
Less: Net income attributable to noncontrolling interests		—			19			—			—			19
Net income (loss) attributable to Tenneco Inc.	$	(77	)	$	130		$	(73	)	$	(53	)	$	(73	)

BALANCE SHEET

	December 31, 2011
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)		Reclass & Elims			Consolidated
	(Millions)
ASSETS
Current assets:
Cash and cash equivalents	$	1		$	213		$	—	$	—		$	214
Receivables, net		455			1,214			27		(716	)		980
Inventories		248			344			—		—			592
Deferred income taxes		35			31			—		(26	)		40
Prepayments and other		21			132			—		—			153
Total current assets		760			1,934			27		(742	)		1,979
Other assets:
Investment in affiliated companies		444			—			681		(1,125	)		—
Notes and advances receivable from affiliates		4,252			1,507			6,059		(11,818	)		—
Long-term receivables, net		2			8			—		—			10
Goodwill		22			52			—		—			74
Intangibles, net		13			19			—		—			32
Deferred income taxes		64			25			3		—			92
Other		31			45			27		—			103
		4,828			1,656			6,770		(12,943	)		311
Plant, property, and equipment, at cost		1,041			2,112			—		—			3,153
Less — Accumulated depreciation and amortization		(749	)		(1,357	)		—		—			(2,106	)
		292			755			—		—			1,047
Total assets	$	5,880		$	4,345		$	6,797	$	(13,685	)	$	3,337
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt (including current maturities of long-term debt)
Short-term debt — non-affiliated	$	—		$	64		$	2	$	—		$	66
Short-term debt — affiliated		203			374			10		(587	)		—
Trade payables		455			825			—		(109	)		1,171
Accrued taxes		11			33			—		—			44
Other		118			178			39		(46	)		289
Total current liabilities		787			1,474			51		(742	)		1,570
Long-term debt — non-affiliated		—			9			1,149		—			1,158
Long-term debt — affiliated		4,718			1,546			5,554		(11,818	)		—
Deferred income taxes		—			51			—		—			51
Postretirement benefits and other liabilities		407			92			—		4			503
Commitments and contingencies
Total liabilities		5,912			3,172			6,754		(12,556	)		3,282
Redeemable noncontrolling interests		—			12			—		—			12
Tenneco Inc. Shareholders’ equity		(32	)		1,118			43		(1,129	)		—
Noncontrolling interests		—			43			—		—			43
Total equity		(32	)		1,161			43		(1,129	)		43
Total liabilities, redeemable noncontrolling interests and equity	$	5,880		$	4,345		$	6,797	$	(13,685	)	$	3,337

BALANCE SHEET

	December 31, 2010
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)		Reclass & Elims			Consolidated
	(Millions)
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	233		$	—	$	—		$	233
Receivables, net		402			1,106			24		(706	)		826
Inventories		221			326			—		—			547
Deferred income taxes		103			—			—		(65	)		38
Prepayments and other		35			111			—		—			146
Total current assets		761			1,776			24		(771	)		1,790
Other assets:
Investment in affiliated companies		391			—			707		(1,098	)		—
Notes and advances receivable from affiliates		4,119			788			5,853		(10,760	)		—
Long-term receivables, net		1			8			—		—			9
Goodwill		22			67			—		—			89
Intangibles, net		14			18			—		—			32
Deferred income taxes		37			21			34		—			92
Other		26			46			33		—			105
		4,610			948			6,627		(11,858	)		327
Plant, property, and equipment, at cost		997			2,112			—		—			3,109
Less — Accumulated depreciation and amortization		(713	)		(1,346	)		—		—			(2,059	)
		284			766			—		—			1,050
Total assets	$	5,655		$	3,490		$	6,651	$	(12,629	)	$	3,167
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt (including current maturities of long-term debt)
Short-term debt — non-affiliated	$	—		$	62		$	1	$	—		$	63
Short-term debt — affiliated		214			371			10		(595	)		—
Trade payables		367			773			—		(92	)		1,048
Accrued taxes		20			31			—		—			51
Other		130			213			47		(84	)		306
Total current liabilities		731			1,450			58		(771	)		1,468
Long-term debt — non-affiliated		—			11			1,149		—			1,160
Long-term debt — affiliated		4,583			768			5,409		(10,760	)		—
Deferred income taxes		—			56			—		—			56
Postretirement benefits and other liabilities		347			85			—		4			436
Commitments and contingencies
Total liabilities		5,661			2,370			6,616		(11,527	)		3,120
Redeemable noncontrolling interests		—			12			—		—			12
Tenneco Inc. Shareholders’ equity		(6	)		1,069			35		(1,102	)		(4	)
Noncontrolling interests		—			39			—		—			39
Total equity		(6	)		1,108			35		(1,102	)		35
Total liabilities, redeemable noncontrolling interests and equity	$	5,655		$	3,490		$	6,651	$	(12,629	)	$	3,167

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	)
Net cash used by investing activities		(70	)		(154	)		—			—		(224	)
Financing Activities
Issuance of long-term debt		—			5			—			—		5
Debt issuance cost on long-term debt		—			—			(1	)		—		(1	)
Retirement of long-term debt		—			(1	)		(23	)		—		(24	)
Increase (decrease) in bank overdrafts		—			3			—			—		3
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt		—			6			24			—		30
Intercompany dividends and net increase (decrease) in intercompany obligations		(330	)		75			255			—		—
Capital contribution from noncontrolling interest partner		—			1			—			—		1
Purchase of additional noncontrolling equity interest		—			(4	)		—			—		(4	)
Distribution to noncontrolling interests partners		—			(20	)		—			—		(20	)
Purchase of common stock under the share repurchase program		—			—			(16	)		—		(16	)
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.

STATEMENT OF CASH FLOWS

	Year Ended December 31, 2010
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims		Consolidated
	(Millions)
Operating Activities
Net cash provided (used) by operating activities	$	97		$	380		$	(233)		$	—	$	244
Investing Activities
Proceeds from sale of assets		1			2			—			—		3
Cash payments for plant, property, and equipment		(50	)		(101	)		—			—		(151	)
Cash payments for software related intangible assets		(7	)		(5	)		—			—		(12	)
Investments and other		—			3			—			—		3
Net cash used by investing activities		(56	)		(101	)		—			—		(157	)
Financing Activities
Issuance of long-term debt		—			5			875			—		880
Debt issuance cost on long-term debt		—			—			(24	)		—		(24	)
Retirement of long-term debt		—			(4	)		(860	)		—		(864	)
Increase (decrease) in bank overdrafts		—			2			—			—		2
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt		—			(10	)		—			—		(10	)
Intercompany dividends and net increase (decrease) in intercompany obligations		(61	)		(181	)		242			—		—
Distribution to noncontrolling interests partners		—			(14	)		—			—		(14	)
Net cash provided (used) by financing activities		(61	)		(202	)		233			—		(30	)
Effect of foreign exchange rate changes on cash and cash equivalents		—			9			—			—		9
Increase (decrease) in cash and cash equivalents		(20	)		86			—			—		66
Cash and cash equivalents, January 1		20			147			—			—		167
Cash and cash equivalents, December 31 (Note)	$	—		$	233		$	—		$	—	$	233

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, 2009
	Guarantor Subsidiaries			Nonguarantor Subsidiaries			Tenneco Inc. (Parent Company)			Reclass & Elims		Consolidated
	(Millions)
Operating Activities
Net cash provided (used) by operating activities	$	347		$	160		$	(266)		$	—	$	241
Investing Activities
Proceeds from sale of assets		—			5			—			—		5
Cash payments for plant, property, and equipment		(42	)		(78	)		—			—		(120	)
Acquisition of business (net of cash acquired)		—			1			—			—		1
Cash payments for software related intangible assets		(2	)		(4	)		—			—		(6	)
Investment and other		—			1			—			—		1
Net cash used by investing activities		(44	)		(75	)		—			—		(119	)
Financing Activities
Issuance of common shares		—			—			188			—		188
Issuance of long-term debt		—			—			6			—		6
Debt issuance cost on long-term debt		—			—			(8	)		—		(8	)
Retirement of long-term debt		—			(5	)		(17	)		—		(22	)
Increase (decrease) in bank overdrafts		—			(23	)		—			—		(23	)
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt		—			21			(239	)		—		(218	)
Intercompany dividends and net increase (decrease) in intercompany obligations		(299	)		(37	)		336			—		—
Distribution to noncontrolling interests partners		—			(10	)		—			—		(10	)
Net cash provided (used) by financing activities		(299	)		(54	)		266			—		(87	)
Effect of foreign exchange rate changes on cash and cash equivalents		—			6			—			—		6
Increase (decrease) in cash and cash equivalents		4			37			—			—		41
Cash and cash equivalents, January 1		16			110			—			—		126
Cash and cash equivalents, December 31 (Note)	$	20		$	147		$	—		$	—	$	167

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