þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 76-0515284 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
500 North Field Drive Lake Forest, IL (Address of principal executive offices) | 60045 (Zip Code) |
Title of each class | ||
Name of each Exchange | ||
on which registered | ||
Common Stock, par value $.01 per share | New York and Chicago Stock Exchanges |
Large accelerated filer | Accelerated filer ¨ | Non-accelerated filer ¨ | Smaller reporting company ¨ |
(Do not check if a smaller reporting company) |
Document | ||
Part of the Form 10-K | ||
into which incorporated | ||
Portions of Tenneco Inc.’s Definitive Proxy Statement for the Annual Meeting of Stockholders to be held May | Part III |
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All members meet the independence standards for audit committee membership under the NYSE listing standards and applicable Securities and Exchange Commission (“SEC”) rules. | ||
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All members meet the independence standards for compensation and nominating committee membership under the NYSE listing standards. | ||
We have adopted Corporate Governance Principles, including qualification and independence standards for directors. |
The Stock Ownership Guidelines apply to the independent directors, the Chairman and Chief Executive Officer, and all other officers with a rank of |
The Audit Committee has established a process for confidential and anonymous submission by our employees, as well as submissions by other interested parties, regarding questionable accounting or auditing matters. | ||
We have adopted a Code of Ethical Conduct for Financial Managers, which applies to our Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, Controller and other key financial managers. This code is filed as Exhibit 14 to this report. | ||
We have adopted a Policy and Procedure for Transactions With Related Persons, under which our Board of Directors must generally pre-approve transactions involving more than $120,000 with our directors, executive officers, five percent or greater stockholders and their immediate family members. |
We have adopted a written policy for all issuances by our company of compensatory awards in the form of our common stock or any derivative of the common stock. |
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We comply with and operate in a manner consistent with the legislation outlawing extensions of credit in the form of a personal loan to or for our directors or executive officers. |
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2010 | 2009 | 2008 | ||||||||||||||||||||||
(Dollar Amounts in Millions) | ||||||||||||||||||||||||
North America | $ | 2,832 | 48 | % | $ | 2,099 | 45 | % | $ | 2,641 | 45 | % | ||||||||||||
Europe, South America and India | 2,594 | 44 | 2,209 | 48 | 2,983 | 50 | ||||||||||||||||||
Asia Pacific | 698 | 12 | 525 | 11 | 543 | 9 | ||||||||||||||||||
Intergroup sales | (187 | ) | (4 | ) | (184 | ) | (4 | ) | (251 | ) | (4 | ) | ||||||||||||
Total | $ | 5,937 | 100 | % | $ | 4,649 | 100 | % | $ | 5,916 | 100 | % | ||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(Dollar Amounts in Millions) | ||||||||||||||||||||
Clean Air Division | ||||||||||||||||||||
North America | $ | 2,666 | 33 | % | $ | 2,512 | 34 | % | $ | 2,291 | 32 | % | ||||||||
Europe, South America & India | 2,045 | 26 | % | 1,827 | 25 | % | 1,952 | 27 | % | |||||||||||
Asia Pacific | 853 | 11 | % | 695 | 9 | % | 625 | 9 | % | |||||||||||
Intergroup sales | (120 | ) | (2 | )% | (108 | ) | (1 | )% | (107 | ) | (2 | )% | ||||||||
Total Clean Air Division | 5,444 | 68 | % | 4,926 | 67 | % | 4,761 | 66 | % | |||||||||||
Ride Performance Division | ||||||||||||||||||||
North America | 1,265 | 16 | % | 1,223 | 16 | % | 1,135 | 16 | % | |||||||||||
Europe, South America & India | 1,087 | 14 | % | 1,094 | 15 | % | 1,217 | 17 | % | |||||||||||
Asia Pacific | 251 | 3 | % | 213 | 3 | % | 179 | 2 | % | |||||||||||
Intergroup sales | (83 | ) | (1 | )% | (93 | ) | (1 | )% | (87 | ) | (1 | )% | ||||||||
Total Ride Performance Division | 2,520 | 32 | % | 2,437 | 33 | % | 2,444 | 34 | % | |||||||||||
Total Tenneco Inc. | $ | 7,964 | 100 | % | $ | 7,363 | 100 | % | $ | 7,205 | 100 | % |
2010 | 2009 | 2008 | ||||||||||||||||||||||
(Dollar Amounts in Millions) | ||||||||||||||||||||||||
North America | $ | 155 | 55 | % | $ | 42 | 45 | % | $ | (107 | ) | NM | ||||||||||||
Europe, South America and India | 76 | 27 | 20 | 22 | 85 | NM | ||||||||||||||||||
Asia Pacific | 50 | 18 | 30 | 33 | 19 | NM | ||||||||||||||||||
Total | $ | 281 | 100 | % | $ | 92 | 100 | % | $ | (3 | ) | NM | ||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(Dollar Amounts in Millions) | ||||||||||||||||||||
Clean Air Division | ||||||||||||||||||||
North America | $ | 229 | 54 | % | $ | 202 | 47 | % | $ | 172 | 45 | % | ||||||||
Europe, South America & India | 57 | 13 | % | 54 | 13 | % | 79 | 21 | % | |||||||||||
Asia Pacific | 84 | 20 | % | 71 | 17 | % | 47 | 12 | % | |||||||||||
Total Clean Air Division | 370 | 87 | % | 327 | 76 | % | 298 | 79 | % | |||||||||||
Ride Performance Division | ||||||||||||||||||||
North America | 124 | 29 | % | 122 | 29 | % | 76 | 20 | % | |||||||||||
Europe, South America & India | (7 | ) | (2 | )% | 41 | 10 | % | 69 | 18 | % | ||||||||||
Asia Pacific | 22 | 5 | % | 5 | 1 | % | (6 | ) | (2 | )% | ||||||||||
Total Ride Performance Division | 139 | 33 | % | 168 | 39 | % | 139 | 37 | % | |||||||||||
Other | (85 | ) | (20 | )% | (67 | ) | (16 | )% | (58 | ) | (15 | )% | ||||||||
Total Tenneco Inc. | $ | 424 | 100 | % | $ | 428 | 100 | % | $ | 379 | 100 | % |
2010 | 2009 | 2008 | ||||||||||||||||||||||
(Dollar Amounts in Millions) | ||||||||||||||||||||||||
North America | $ | 59 | 38 | % | $ | 45 | 38 | % | $ | 108 | 49 | % | ||||||||||||
Europe, South America and India | 66 | 43 | 58 | 49 | 89 | 40 | ||||||||||||||||||
Asia Pacific | 29 | 19 | 15 | 13 | 24 | 11 | ||||||||||||||||||
Total | $ | 154 | 100 | % | $ | 118 | 100 | % | $ | 221 | 100 | % | ||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
(Dollar Amounts in Millions) | ||||||||||||||||||||
Clean Air Division | ||||||||||||||||||||
North America | $ | 77 | 30 | % | $ | 76 | 29 | % | $ | 49 | 22 | % | ||||||||
Europe, South America & India | 61 | 24 | % | 56 | 21 | % | 55 | 25 | % | |||||||||||
Asia Pacific | 44 | 17 | % | 40 | 15 | % | 24 | 11 | % | |||||||||||
Total Clean Air Division | 182 | 72 | % | 172 | 65 | % | 128 | 59 | % | |||||||||||
Ride Performance Division | ||||||||||||||||||||
North America | 32 | 13 | % | 46 | 17 | % | 39 | 18 | % | |||||||||||
Europe, South America & India | 34 | 13 | % | 32 | 12 | % | 40 | 18 | % | |||||||||||
Asia Pacific | 6 | 2 | % | 13 | 5 | % | 11 | 5 | % | |||||||||||
Total Ride Performance Division | 72 | 28 | % | 91 | 35 | % | 90 | 41 | % | |||||||||||
Total Tenneco Inc. | $ | 254 | 100 | % | $ | 263 | 100 | % | $ | 218 | 100 | % |
2010 | 2009 | 2008 | ||||||||||
(Millions) | ||||||||||||
Interest expense (net of interest capitalized) | $ | 149 | $ | 133 | $ | 113 | ||||||
Income tax expense | 69 | 13 | 289 | |||||||||
Noncontrolling interests | 24 | 19 | 10 |
2013 | 2012 | 2011 | |||||||||
(Millions) | |||||||||||
Interest expense (net of interest capitalized) | $ | 80 | $ | 105 | $ | 108 | |||||
Income tax expense | 122 | 19 | 88 | ||||||||
Noncontrolling interests | 39 | 29 | 26 |
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“Systems” are groups of component parts located throughout a vehicle which operate together to provide a specific vehicle functionality. Emission control systems, anti-lock braking systems, safety restraint systems, roll control systems and powertrain systems are examples. |
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Net Sales | ||||||||||||
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions) | ||||||||||||
Emission Control Systems & Products | ||||||||||||
Aftermarket | $ | 318 | $ | 315 | $ | 358 | ||||||
Original Equipment | ||||||||||||
OE Value-add | 2,223 | 1,638 | 2,128 | |||||||||
OE Substrate(1) | 1,284 | 966 | 1,492 | |||||||||
3,507 | 2,604 | 3,620 | ||||||||||
3,825 | 2,919 | 3,978 | ||||||||||
Ride Control Systems & Products | ||||||||||||
Aftermarket | 851 | 721 | 761 | |||||||||
Original Equipment | 1,261 | 1,009 | 1,177 | |||||||||
2,112 | 1,730 | 1,938 | ||||||||||
Total Revenues | $ | 5,937 | $ | 4,649 | $ | 5,916 | ||||||
Net Sales Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(Millions) | |||||||||||
Clean Air Products & Systems | |||||||||||
Aftermarket | $ | 327 | $ | 318 | $ | 351 | |||||
Original Equipment | |||||||||||
OE Value-add | 3,282 | 2,948 | 2,732 | ||||||||
OE Substrate(1) | 1,835 | 1,660 | 1,678 | ||||||||
5,117 | 4,608 | 4,410 | |||||||||
5,444 | 4,926 | 4,761 | |||||||||
Ride Performance Products & Systems | |||||||||||
Aftermarket | 953 | 944 | 944 | ||||||||
Original Equipment | 1,567 | 1,493 | 1,500 | ||||||||
2,520 | 2,437 | 2,444 | |||||||||
Total Revenues | $ | 7,964 | $ | 7,363 | $ | 7,205 |
(1) | See “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in Item 7 for a discussion of substrate sales. |
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North America | Europe | |||
Asia | ||||
AM General | AvtoVAZ | Beijing Automotive | ||
Caterpillar | BMW | BMW | ||
Brilliance Automobile | ||||
Changan Automotive | ||||
Daimler AG | China National Heavy-Duty Truck Group | |||
E-Z Go | Deutz AG | Daimler AG | ||
Fiat | Dongfeng Motor | |||
Ford Motor | Ducati Motor | |||
General Motors | Ford Motor | First Auto Works | ||
Harley-Davidson | Ford Motor | |||
Honda | Geely Automobile | |||
General Motors | ||||
Great Wall Motor | ||||
Navistar International | ||||
Nissan Motor | ||||
Oshkosh Truck | McLaren Automotive | Jiangling Motors | ||
Paccar | Nissan Motor | Kubota | ||
Toyota Motor | Paccar | Nissan Motor | ||
Volkswagen Group | PSA Peugeot Citroen | SAIC Motor | ||
Volvo Global Truck | Renault | |||
Scania | Toyota Motor | |||
Suzuki Motor | ||||
Tata Motors | Weichai Power | |||
Toyota Motor | Yuchai Group | |||
Volkswagen Group | ||||
Volvo Global Truck |
Australia | South America | India | ||
Club Car | CNH Industrial (Iveco) | Club Car | ||
CNH Industrial (Iveco) | Daimler AG | Daimler AG | ||
Ford Motor | Fiat Chrysler Automobile | E-Z Go | ||
General Motors | Ford Motor | Ford Motor | ||
Toyota Motor | ||||
MAN SE | Isuzu Motor | |||
Navistar International | Mahindra & Mahindra | |||
Nissan Motor | Nissan Motor | |||
PSA Peugeot Citroen | Suzuki Motor | |||
Renault | Tata Motors | |||
Scania | Toyota Motor | |||
Toyota Motor | Volkswagen Group | |||
Volkswagen Group | ||||
Customer | 2010 | 2009 | 2008 | |||||||||
General Motors | 19 | % | 16 | % | 20 | % | ||||||
Ford | 13 | % | 14 | % | 11 | % |
Customer | 2013 | 2012 | 2011 | |||||
General Motors | 15 | % | 17 | % | 19 | % | ||
Ford Motor | 14 | % | 15 | % | 15 | % |
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• |
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Selective Catalytic Reduction (SCR) systems — Devices which reduce NOx emissions from diesel powertrains using injected reductants such as | ||
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Percentage of Net Sales | ||||||||||||
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
United States | ||||||||||||
Aftermarket | 11 | % | 17 | % | 12 | % | ||||||
OE market | 89 | 83 | 88 | |||||||||
100 | % | 100 | % | 100 | % | |||||||
Foreign Sales | ||||||||||||
Aftermarket | 7 | % | 8 | % | 8 | % | ||||||
OE market | 93 | 92 | 92 | |||||||||
100 | % | 100 | % | 100 | % | |||||||
Total Sales by Geographic Area | ||||||||||||
United States | 39 | % | 31 | % | 32 | % | ||||||
Foreign | 61 | 69 | 68 | |||||||||
100 | % | 100 | % | 100 | % | |||||||
• | ||
Vibration control components (Clevite® |
• | Kinetic® | |
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Percentage of Net Sales | ||||||||||||
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
United States | ||||||||||||
Aftermarket | 59 | % | 60 | % | 53 | % | ||||||
OE market | 41 | 40 | 47 | |||||||||
100 | % | 100 | % | 100 | % | |||||||
Foreign Sales | ||||||||||||
Aftermarket | 30 | % | 32 | % | 32 | % | ||||||
OE market | 70 | 68 | 68 | |||||||||
100 | % | 100 | % | 100 | % | |||||||
Total Sales by Geographic Area | ||||||||||||
United States | 35 | % | 36 | % | 34 | % | ||||||
Foreign | 65 | 64 | 66 | |||||||||
100 | % | 100 | % | 100 | % | |||||||
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Adaptive damping systems — adapt to the vehicle’s motion to better control undesirable vehicle motions; | ||
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ITEM 1A. | RISK FACTORS. |
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30 ITEM 1B. | UNRESOLVED STAFF COMMENTS. |
ITEM 2. | PROPERTIES. |
ITEM 3. | LEGAL PROCEEDINGS. |
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ITEM 4.MINE SAFETY DISCLOSURES. Not applicable. 32 ITEM 4.1. |
EXECUTIVE OFFICERS OF THE REGISTRANT. |
Name and Age | Offices Held | |||
Gregg M. Sherrill | Chairman and Chief Executive Officer | |||
Hari N. Nair | Chief Operating Officer | |||
Josep Fornos (61) | Executive Vice President, Ride Performance Division | |||
Timothy E. Jackson (57) | Executive Vice President Technology, Strategy and Business Development | |||
Kenneth R. Trammell | Executive Vice President and Chief Financial Officer | |||
Neal A. Yanos | Executive Vice President, | |||
Brent J. Bauer | Senior Vice President and General Manager — North | |||
Senior Vice President, Global | ||||
Michael J. Charlton (55) | Senior Vice President, Global Manufacturing Development and European Cost Reduction Initiatives | |||
James D. Harrington | Senior Vice President, General Counsel and Corporate Secretary | |||
Paul D. Novas | Vice President and Controller |
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ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES. |
Sales Prices | ||||||||
Quarter | High | Low | ||||||
2010 | ||||||||
1st | $ | 25.00 | $ | 17.17 | ||||
2nd | 27.50 | 19.06 | ||||||
3rd | 31.46 | 19.29 | ||||||
4th | 43.71 | 28.47 | ||||||
2009 | ||||||||
1st | $ | 4.14 | $ | 0.67 | ||||
2nd | 11.19 | 1.56 | ||||||
3rd | 18.11 | 8.14 | ||||||
4th | 19.78 | 11.35 |
Sales Prices | |||||||
Quarter | High | Low | |||||
2013 | |||||||
1st | $ | 39.50 | $ | 34.55 | |||
2nd | 47.83 | 34.26 | |||||
3rd | 52.01 | 45.30 | |||||
4th | 57.85 | 48.60 | |||||
2012 | |||||||
1st | $ | 40.69 | $ | 29.45 | |||
2nd | 39.28 | 24.35 | |||||
3rd | 32.81 | 24.43 | |||||
4th | 35.25 | 26.72 |
34
Total Number of | Average Price | |||||||
Period | Shares Purchased | Paid | ||||||
October 2010 | — | $ | — | |||||
November 2010 | 8,067 | 36.34 | ||||||
December 2010 | 3,279 | 21.68 | ||||||
Total | 11,346 | $ | 32.10 |
Period | Total Number of Shares Purchased | Average Price Paid | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares That May Yet be Purchased Under These Plans or Programs | ||||||||
October 2013 | 116,732 | $ | 52.02 | 114,646 | 15,454 | |||||||
November 2013 | 15,463 | $ | 53.68 | 15,454 | — | |||||||
December 2013 | — | $ | — | — | — | |||||||
Total | 132,195 | $ | 52.21 | 130,100 | — |
12/31/05 | 12/31/06 | 12/31/07 | 12/31/08 | 12/31/09 | 12/31/10 | |||||||||||||||||||||||||
Tenneco Inc. | 100.00 | 126.06 | 132.94 | 15.04 | 90.41 | 209.89 | ||||||||||||||||||||||||
S&P 500 | 100.00 | 115.80 | 122.16 | 76.96 | 97.33 | 111.99 | ||||||||||||||||||||||||
Peer Group | 100.00 | 116.24 | 154.85 | 67.91 | 117.41 | 220.13 | ||||||||||||||||||||||||
12/31/2008 | 12/31/2009 | 12/31/2010 | 12/31/2011 | 12/31/2012 | 12/31/2013 | |||||||
Tenneco Inc. | 100.00 | 601.02 | 1,395.25 | 1,009.49 | 1,190.17 | 1,917.63 | ||||||
S&P 500 | 100.00 | 126.46 | 145.51 | 148.59 | 172.37 | 228.19 | ||||||
Peer Group | 100.00 | 172.90 | 324.17 | 249.91 | 300.97 | 469.40 |
ITEM 6. | SELECTED FINANCIAL DATA. |
Year Ended December 31, | ||||||||||||||||||||
2010 | 2009(a) | 2008(b) | 2007 | 2006 | ||||||||||||||||
(Millions Except Share and Per Share Amounts) | ||||||||||||||||||||
Statements of Income (Loss) Data: | ||||||||||||||||||||
Net sales and operating revenues — | ||||||||||||||||||||
North America | $ | 2,832 | $ | 2,099 | $ | 2,641 | $ | 2,910 | $ | 1,963 | ||||||||||
Europe, South America and India | 2,594 | 2,209 | 2,983 | 3,135 | 2,387 | |||||||||||||||
Asia Pacific | 698 | 525 | 543 | 560 | 436 | |||||||||||||||
Intergroup sales | (187 | ) | (184 | ) | (251 | ) | (421 | ) | (104 | ) | ||||||||||
$ | 5,937 | $ | 4,649 | $ | 5,916 | $ | 6,184 | $ | 4,682 | |||||||||||
Earnings (loss) before interest expense, income taxes, and noncontrolling interests | ||||||||||||||||||||
North America | $ | 155 | $ | 42 | $ | (107 | ) | $ | 120 | $ | 103 | |||||||||
Europe, South America and India | 76 | 20 | 85 | 99 | 81 | |||||||||||||||
Asia Pacific | 50 | 30 | 19 | 33 | 12 | |||||||||||||||
Total | 281 | 92 | (3 | ) | 252 | 196 | ||||||||||||||
Interest expense (net of interest capitalized) | 149 | 133 | 113 | 164 | 136 | |||||||||||||||
Income tax expense | 69 | 13 | 289 | 83 | 5 | |||||||||||||||
Net income (loss) | 63 | (54 | ) | (405 | ) | 5 | 55 | |||||||||||||
Less: Net income attributable to noncontrolling interests | 24 | 19 | 10 | 10 | 6 | |||||||||||||||
Net income (loss) attributable to Tenneco Inc. | $ | 39 | $ | (73 | ) | $ | (415 | ) | $ | (5 | ) | $ | 49 | |||||||
Weighted average shares of common stock outstanding — | ||||||||||||||||||||
Basic | 59,208,103 | 48,572,463 | 46,406,095 | 45,809,730 | 44,625,220 | |||||||||||||||
Diluted | 60,998,694 | 48,572,463 | 46,406,095 | 45,809,730 | 46,755,573 | |||||||||||||||
Basic earnings (loss) per share of common stock | $ | 0.65 | $ | (1.50 | ) | $ | (8.95 | ) | $ | (0.11 | ) | $ | 1.11 | |||||||
Diluted earnings (loss) per share of common stock | $ | 0.63 | $ | (1.50 | ) | $ | (8.95 | ) | $ | (0.11 | ) | $ | 1.05 |
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Years Ended December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
(Millions Except Ratio and Percent Amounts) | ||||||||||||||||||||
Balance Sheet Data (at year end): | ||||||||||||||||||||
Total assets | $ | 3,167 | $ | 2,841 | $ | 2,828 | $ | 3,590 | $ | 3,274 | ||||||||||
Short-term debt | 63 | 75 | 49 | 46 | 28 | |||||||||||||||
Long-term debt | 1,160 | 1,145 | 1,402 | 1,328 | 1,357 | |||||||||||||||
Redeemable noncontrolling interests | 12 | 7 | 7 | 6 | 4 | |||||||||||||||
Total Tenneco Inc. shareholders’ equity | (4 | ) | (21 | ) | (251 | ) | 400 | 226 | ||||||||||||
Noncontrolling interests | 39 | 32 | 24 | 25 | 24 | |||||||||||||||
Total equity | 35 | 11 | (227 | ) | 425 | 250 | ||||||||||||||
Statement of Cash Flows Data: | ||||||||||||||||||||
Net cash provided by operating activities | $ | 244 | $ | 241 | $ | 160 | $ | 158 | $ | 203 | ||||||||||
Net cash used by investing activities | (157 | ) | (119 | ) | (261 | ) | (202 | ) | (172 | ) | ||||||||||
Net cash provided (used) by financing activities | (30 | ) | 87 | 58 | (10 | ) | 12 | |||||||||||||
Cash payments for plant, property and equipment | (151 | ) | (120 | ) | (233 | ) | (177 | ) | (177 | ) | ||||||||||
Other Data: | ||||||||||||||||||||
EBITDA including noncontrolling interests(c) | $ | 497 | $ | 313 | $ | 219 | $ | 457 | $ | 380 | ||||||||||
Ratio of EBITDA including noncontrolling interests to interest expense | 3.34 | 2.35 | 1.94 | 2.79 | 2.79 | |||||||||||||||
Ratio of net debt (total debt less cash and cash equivalents) to EBITDA including noncontrolling interests(d) | 1.99 | 3.36 | 6.05 | 2.60 | 3.11 | |||||||||||||||
Ratio of earnings to fixed charges(e) | 1.79 | — | — | 1.46 | 1.35 |
Year Ended December 31, | |||||||||||||||||||
2013(a) | 2012(b) | 2011(c) | 2010 | 2009(d) | |||||||||||||||
(Millions Except Share and Per Share Amounts) | |||||||||||||||||||
Statements of Income (Loss) Data: | |||||||||||||||||||
Net sales and operating revenues — | |||||||||||||||||||
Clean Air Division | |||||||||||||||||||
North America | $ | 2,666 | $ | 2,512 | $ | 2,291 | $ | 1,813 | $ | 1,305 | |||||||||
Europe, South America & India | 2,045 | 1,827 | 1,952 | $ | 1,562 | $ | 1,330 | ||||||||||||
Asia Pacific | 853 | 695 | 625 | $ | 543 | $ | 405 | ||||||||||||
Intergroup sales | (120 | ) | (108 | ) | (107 | ) | $ | (93 | ) | $ | (121 | ) | |||||||
Total Clean Air Division | 5,444 | 4,926 | 4,761 | $ | 3,825 | $ | 2,919 | ||||||||||||
Ride Performance Division | |||||||||||||||||||
North America | 1,265 | 1,223 | 1,135 | $ | 1,019 | $ | 799 | ||||||||||||
Europe, South America & India | 1,087 | 1,094 | 1,217 | $ | 1,032 | $ | 880 | ||||||||||||
Asia Pacific | 251 | 213 | 179 | $ | 155 | $ | 121 | ||||||||||||
Intergroup sales | (83 | ) | (93 | ) | (87 | ) | $ | (94 | ) | $ | (70 | ) | |||||||
Total Ride Performance Division | 2,520 | 2,437 | 2,444 | $ | 2,112 | $ | 1,730 | ||||||||||||
Total Tenneco Inc. | $ | 7,964 | $ | 7,363 | $ | 7,205 | $ | 5,937 | $ | 4,649 | |||||||||
Earnings (loss) before interest expense, income taxes, and noncontrolling interests — | |||||||||||||||||||
Clean Air Division | |||||||||||||||||||
North America | $ | 229 | $ | 202 | $ | 172 | $ | 114 | $ | 52 | |||||||||
Europe, South America & India | 57 | 54 | 79 | $ | 50 | $ | 7 | ||||||||||||
Asia Pacific | 84 | 71 | 47 | $ | 53 | $ | 25 | ||||||||||||
Total Clean Air Division | 370 | 327 | 298 | $ | 217 | $ | 84 | ||||||||||||
Ride Performance Division | |||||||||||||||||||
North America | 124 | 122 | 76 | $ | 87 | $ | 26 | ||||||||||||
Europe, South America & India | (7 | ) | 41 | 69 | $ | 55 | $ | 27 | |||||||||||
Asia Pacific | 22 | 5 | (6 | ) | $ | 3 | $ | 4 | |||||||||||
Total Ride Performance Division | 139 | 168 | 139 | $ | 145 | $ | 57 | ||||||||||||
Other | (85 | ) | (67 | ) | (58 | ) | (81 | ) | (49 | ) | |||||||||
Total Tenneco Inc. | $ | 424 | $ | 428 | $ | 379 | 281 | 92 | |||||||||||
Interest expense (net of interest capitalized) | 80 | 105 | 108 | 149 | 133 | ||||||||||||||
Income tax expense | 122 | 19 | 88 | 69 | 13 | ||||||||||||||
Net income (loss) | 222 | 304 | 183 | 63 | (54 | ) | |||||||||||||
Less: Net income attributable to noncontrolling interests | 39 | 29 | 26 | 24 | 19 | ||||||||||||||
Net income (loss) attributable to Tenneco Inc. | $ | 183 | $ | 275 | $ | 157 | $ | 39 | $ | (73 | ) | ||||||||
Weighted average shares of common stock outstanding — | |||||||||||||||||||
Basic | 60,474,492 | 59,985,677 | 59,884,139 | 59,208,103 | 48,572,463 | ||||||||||||||
Diluted | 61,594,062 | 61,083,510 | 61,520,160 | 60,998,694 | 48,572,463 | ||||||||||||||
Basic earnings (loss) per share of common stock | $ | 3.03 | $ | 4.58 | $ | 2.62 | $ | 0.65 | $ | (1.50 | ) | ||||||||
Diluted earnings (loss) per share of common stock | $ | 2.97 | $ | 4.50 | $ | 2.55 | $ | 0.63 | $ | (1.50 | ) |
Years Ended December 31, | |||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||
(Millions Except Ratio and Percent Amounts) | |||||||||||||||||||
Balance Sheet Data (at year end): | |||||||||||||||||||
Total assets | $ | 3,830 | $ | 3,608 | $ | 3,337 | $ | 3,167 | $ | 2,841 | |||||||||
Short-term debt | 83 | 113 | 66 | 63 | 75 | ||||||||||||||
Long-term debt | 1,019 | 1,067 | 1,158 | 1,160 | 1,145 | ||||||||||||||
Redeemable noncontrolling interests | 20 | 15 | 12 | 12 | 7 | ||||||||||||||
Total Tenneco Inc. shareholders’ equity | 433 | 246 | — | (4 | ) | (21 | ) | ||||||||||||
Noncontrolling interests | 39 | 45 | 43 | 39 | 32 | ||||||||||||||
Total equity | 472 | 291 | 43 | 35 | 11 | ||||||||||||||
Statement of Cash Flows Data: | |||||||||||||||||||
Net cash provided by operating activities | $ | 503 | $ | 365 | $ | 245 | $ | 244 | $ | 241 | |||||||||
Net cash used by investing activities | (266 | ) | (273 | ) | (224 | ) | (157 | ) | (119 | ) | |||||||||
Net cash used by financing activities | (175 | ) | (89 | ) | (26 | ) | (30 | ) | (87 | ) | |||||||||
Cash payments for plant, property and equipment | (244 | ) | (256 | ) | (213 | ) | (151 | ) | (120 | ) | |||||||||
Other Data: | |||||||||||||||||||
EBITDA including noncontrolling interests(e) | $ | 629 | $ | 633 | $ | 586 | $ | 497 | $ | 313 | |||||||||
Ratio of EBITDA including noncontrolling interests to interest expense | 7.86 | 6.03 | 5.43 | 3.34 | 2.35 | ||||||||||||||
Ratio of net debt (total debt less cash and cash equivalents) to EBITDA including noncontrolling interests(f) | 1.31 | 1.51 | 1.72 | 1.99 | 3.36 | ||||||||||||||
Ratio of earnings to fixed charges(g) | 4.34 | 3.55 | 3.10 | 1.79 | — |
(a) | 2013 includes $78 million of restructuring and related costs primarily related to European cost reduction efforts including the closing of the ride performance plant in Gijon, Spain and intended reductions to the workforce at our ride performance plant in Sint-Truiden, our exit from the distribution of aftermarket exhaust products and ending production of leaf springs in Australia, headcount reductions in various regions, and the net impact of freezing our defined benefit plans in the United Kingdom. Of the total $78 million we incurred in restructuring and related costs, $3 million was related to non-cash asset write downs. |
(b) | 2012 includes a $7 million asset impairment charge related to certain assets of our European Ride Performance business and a benefit of $5 million from property recoveries related to transactions originated by The Pullman Company before being acquired by Tenneco in 1996. |
(c) | During the third quarter of 2011, we recorded a goodwill impairment charge of $11 million related to our Australian reporting unit within the Asia Pacific segment. |
(d) | We incurred no direct economic loss from the bankruptcy filing of Chrysler and General Motors plants in North America during the second and third quarters of 2009. In this regard, we collected substantially all of our pre-petition receivables from Chrysler Group LLC and Chrysler Group LLC has assumed substantially all of the contracts which we had with Chrysler LLC. We collected substantially all of our pre-petition receivables from General Motors Company and General Motors Company has assumed substantially all of the contracts which we had with General Motors Corporation. However, the vehicle production shutdowns at Chrysler and significant reductions in vehicle production volumes at General Motors plants in North America during the second quarter of 2009 that coincided with their bankruptcies did cause Tenneco’s revenue from those two customers in North America to decline to $123 million in the second quarter of 2009, down from $242 million in the second quarter of 2008. We believe that General Motors and Chrysler were able to meet any unmet demand for their vehicles resulting from their production volume reductions in the second quarter of 2009 during the second half of 2009 after they exited their respective bankruptcy proceedings. Accordingly, for the entire 2009 calendar year, we consider the vehicle production volume reductions at Chrysler and General Motors to have been primarily driven by the same severe deterioration in overall economic |
(e) | EBITDA including noncontrolling interests is a non-GAAP measure defined as net income before extraordinary items, cumulative effect of changes in accounting principle, interest expense, income taxes, depreciation and amortization and noncontrolling interests. We use EBITDA including noncontrolling interests, together with GAAP measures, to evaluate and compare our operating performance on a consistent basis between time periods and with other companies that compete in our markets but which may have different capital structures and tax positions, which can have an impact on the comparability of interest expense, noncontrolling interests and tax expense. We also believe that using this measure allows us to understand and compare operating performance both with and without depreciation expense, which can vary based on several factors. We believe EBITDA including noncontrolling interests is useful to our investors and other parties for these same reasons. |
38
Year Ended December 31, | |||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||
(Millions) | |||||||||||||||||||
Net income (loss) | $ | 183 | $ | 275 | $ | 157 | $ | 39 | $ | (73 | ) | ||||||||
Noncontrolling interests | 39 | 29 | 26 | 24 | 19 | ||||||||||||||
Income tax expense | 122 | 19 | 88 | 69 | 13 | ||||||||||||||
Interest expense, net of interest capitalized | 80 | 105 | 108 | 149 | 133 | ||||||||||||||
Depreciation and amortization of other intangibles | 205 | 205 | 207 | 216 | 221 | ||||||||||||||
Total EBITDA including noncontrolling interests | $ | 629 | $ | 633 | $ | 586 | $ | 497 | $ | 313 |
Year Ended December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
(Millions) | ||||||||||||||||||||
Net income (loss) | $ | 39 | $ | (73 | ) | $ | (415 | ) | $ | (5 | ) | $ | 49 | |||||||
Noncontrolling interests | 24 | 19 | 10 | 10 | 6 | |||||||||||||||
Income tax expense | 69 | 13 | 289 | 83 | 5 | |||||||||||||||
Interest expense, net of interest capitalized | 149 | 133 | 113 | 164 | 136 | |||||||||||||||
Depreciation and amortization of other intangibles | 216 | 221 | 222 | 205 | 184 | |||||||||||||||
Total EBITDA including noncontrolling interests | $ | 497 | $ | 313 | $ | 219 | $ | 457 | $ | 380 | ||||||||||
(f) | We present the ratio of net debt (total debt less cash and cash equivalents) to EBITDA including noncontrolling interests because management believes it is a useful measure of Tenneco’s credit position and progress toward reducing leverage. The calculation is limited in that we may not always be able to use cash to repay debt on a dollar-for-dollar basis. |
For purposes of computing this ratio, earnings generally consist of income before income taxes and fixed charges excluding capitalized interest. Fixed charges consist of interest expense, the portion of rental expense considered representative of the interest factor and capitalized interest. Earnings were insufficient to cover fixed charges by $39 million |
ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
40
Year ended December 31, 2009 | $ | 3,875 | ||
Volume and mix | 976 | |||
Material | 23 | |||
Currency | 8 | |||
Restructuring | (6 | ) | ||
Other Costs | 24 | |||
Year ended December 31, 2010 | $ | 4,900 | ||
Year ended December 31, 2012 | $ | 6,170 | |
Volume and mix | 571 | ||
Material | (59 | ) | |
Currency exchange rates | (37 | ) | |
Restructuring | 57 | ||
Other Costs | 32 | ||
Year ended December 31, 2013 | $ | 6,734 |
41
42
Year Ended December 31, 2010 | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Substrate | Excluding | |||||||||||||||||||
Revenues | Sales | Currency and | ||||||||||||||||||
Currency | Excluding | Excluding | Substrate | |||||||||||||||||
Revenues | Impact | Currency | Currency | Sales | ||||||||||||||||
(Millions) | ||||||||||||||||||||
North America Original Equipment | ||||||||||||||||||||
Ride Control | $ | 527 | $ | 11 | $ | 516 | $ | — | $ | 516 | ||||||||||
Emission Control | 1,642 | 7 | 1,635 | 739 | 896 | |||||||||||||||
Total North America Original Equipment | 2,169 | 18 | 2,151 | 739 | 1,412 | |||||||||||||||
North America Aftermarket | ||||||||||||||||||||
Ride Control | 484 | 4 | 480 | — | 480 | |||||||||||||||
Emission Control | 168 | 2 | 166 | — | 166 | |||||||||||||||
Total North America Aftermarket | 652 | 6 | 646 | — | 646 | |||||||||||||||
Total North America | 2,821 | 24 | 2,797 | 739 | 2,058 | |||||||||||||||
Europe Original Equipment | ||||||||||||||||||||
Ride Control | 462 | (26 | ) | 488 | — | 488 | ||||||||||||||
Emission Control | 1,121 | (40 | ) | 1,161 | 369 | 792 | ||||||||||||||
Total Europe Original Equipment | 1,583 | (66 | ) | 1,649 | 369 | 1,280 | ||||||||||||||
Europe Aftermarket | ||||||||||||||||||||
Ride Control | 190 | (8 | ) | 198 | — | 198 | ||||||||||||||
Emission Control | 141 | (7 | ) | 148 | — | 148 | ||||||||||||||
Total Europe Aftermarket | 331 | (15 | ) | 346 | — | 346 | ||||||||||||||
South America & India | 532 | 33 | 499 | 74 | 425 | |||||||||||||||
Total Europe, South America & India | 2,446 | (48 | ) | 2,494 | 443 | 2,051 | ||||||||||||||
Asia | 517 | 8 | 509 | 106 | 403 | |||||||||||||||
Australia | 153 | 18 | 135 | 9 | 126 | |||||||||||||||
Total Asia Pacific | 670 | 26 | 644 | 115 | 529 | |||||||||||||||
Total Tenneco | $ | 5,937 | $ | 2 | $ | 5,935 | $ | 1,297 | $ | 4,638 | ||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||
Revenues | Substrate Sales | Value-add Revenues | Currency Impact on Value-add Revenues | Value-add Revenues excluding Currency | |||||||||||||||
(Millions) | |||||||||||||||||||
Clean Air Division | |||||||||||||||||||
North America | $ | 2,658 | $ | 1,030 | $ | 1,628 | $ | (1 | ) | $ | 1,629 | ||||||||
Europe, South America & India | 1,934 | 663 | 1,271 | (18 | ) | 1,289 | |||||||||||||
Asia Pacific | 852 | 142 | 710 | 9 | 701 | ||||||||||||||
Total Clean Air Division | 5,444 | 1,835 | 3,609 | (10 | ) | 3,619 | |||||||||||||
Ride Performance Division | |||||||||||||||||||
North America | 1,255 | — | 1,255 | (6 | ) | 1,261 | |||||||||||||
Europe, South America & India | 1,046 | — | 1,046 | (36 | ) | 1,082 | |||||||||||||
Asia Pacific | 219 | — | 219 | (3 | ) | 222 | |||||||||||||
Total Ride Performance Division | 2,520 | — | 2,520 | (45 | ) | 2,565 | |||||||||||||
Total Tenneco Inc. | $ | 7,964 | $ | 1,835 | $ | 6,129 | $ | (55 | ) | $ | 6,184 |
43
Year Ended December 31, 2009 | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Substrate | Excluding | |||||||||||||||||||
Revenues | Sales | Currency and | ||||||||||||||||||
Currency | Excluding | Excluding | Substrate | |||||||||||||||||
Revenues | Impact | Currency | Currency | Sales | ||||||||||||||||
(Millions) | ||||||||||||||||||||
North America Original Equipment | ||||||||||||||||||||
Ride Control | $ | 382 | $ | — | $ | 382 | $ | — | $ | 382 | ||||||||||
Emission Control | 1,154 | — | 1,154 | 530 | 624 | |||||||||||||||
Total North America Original Equipment | 1,536 | — | 1,536 | 530 | 1,006 | |||||||||||||||
North America Aftermarket | ||||||||||||||||||||
Ride Control | 406 | — | 406 | — | 406 | |||||||||||||||
Emission Control | 150 | — | 150 | — | 150 | |||||||||||||||
Total North America Aftermarket | 556 | — | 556 | — | 556 | |||||||||||||||
Total North America | 2,092 | — | 2,092 | 530 | 1,562 | |||||||||||||||
Europe Original Equipment | ||||||||||||||||||||
Ride Control | 421 | — | 421 | — | 421 | |||||||||||||||
Emission Control | 917 | — | 917 | 296 | 621 | |||||||||||||||
Total Europe Original Equipment | 1,338 | — | 1,338 | 296 | 1,042 | |||||||||||||||
Europe Aftermarket | ||||||||||||||||||||
Ride Control | 181 | — | 181 | — | 181 | |||||||||||||||
Emission Control | 154 | — | 154 | — | 154 | |||||||||||||||
Total Europe Aftermarket | 335 | — | 335 | — | 335 | |||||||||||||||
South America & India | 374 | — | 374 | 45 | 329 | |||||||||||||||
Total Europe, South America & India | 2,047 | — | 2,047 | 341 | 1,706 | |||||||||||||||
Asia | 380 | — | 380 | 85 | 295 | |||||||||||||||
Australia | 130 | — | 130 | 10 | 120 | |||||||||||||||
Total Asia Pacific | 510 | — | 510 | 95 | 415 | |||||||||||||||
Total Tenneco | $ | 4,649 | $ | — | $ | 4,649 | $ | 966 | $ | 3,683 | ||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||
Revenues | Substrate Sales | Value-add Revenues | Currency Impact on Value-add Revenues | Value-add Revenues excluding Currency | |||||||||||||||
(Millions) | |||||||||||||||||||
Clean Air Division | |||||||||||||||||||
North America | $ | 2,506 | $ | 997 | $ | 1,509 | $ | — | $ | 1,509 | |||||||||
Europe, South America & India | 1,726 | 570 | 1,156 | — | 1,156 | ||||||||||||||
Asia Pacific | 694 | 93 | 601 | — | 601 | ||||||||||||||
Total Clean Air Division | 4,926 | 1,660 | 3,266 | — | 3,266 | ||||||||||||||
Ride Performance Division | |||||||||||||||||||
North America | 1,213 | — | 1,213 | — | 1,213 | ||||||||||||||
Europe, South America & India | 1,041 | — | 1,041 | — | 1,041 | ||||||||||||||
Asia Pacific | 183 | — | 183 | — | 183 | ||||||||||||||
Total Ride Performance Division | 2,437 | — | 2,437 | — | 2,437 | ||||||||||||||
Total Tenneco Inc. | $ | 7,363 | $ | 1,660 | $ | 5,703 | $ | — | $ | 5,703 |
44
Year Ended December 31, 2010 | ||||||||||||||||
Versus Year Ended December 31, 2009 | ||||||||||||||||
Dollar and Percent Increase (Decrease) | ||||||||||||||||
Revenues | ||||||||||||||||
Excluding | ||||||||||||||||
Currency and | ||||||||||||||||
Substrate | ||||||||||||||||
Revenues | Percent | Sales | Percent | |||||||||||||
(Millions Except Percent Amounts) | ||||||||||||||||
North America Original Equipment | ||||||||||||||||
Ride Control | $ | 145 | 38 | % | $ | 134 | 35 | % | ||||||||
Emission Control | 488 | 42 | % | 272 | 44 | % | ||||||||||
Total North America Original Equipment | 633 | 41 | % | 406 | 40 | % | ||||||||||
North America Aftermarket | ||||||||||||||||
Ride Control | 78 | 19 | % | 74 | 18 | % | ||||||||||
Emission Control | 18 | 12 | % | 16 | 10 | % | ||||||||||
Total North America Aftermarket | 96 | 17 | % | 90 | 16 | % | ||||||||||
Total North America | 729 | 35 | % | 496 | 32 | % | ||||||||||
Europe Original Equipment | ||||||||||||||||
Ride Control | 41 | 10 | % | 67 | 16 | % | ||||||||||
Emission Control | 204 | 22 | % | 171 | 28 | % | ||||||||||
Total Europe Original Equipment | 245 | 18 | % | 238 | 23 | % | ||||||||||
Europe Aftermarket | ||||||||||||||||
Ride Control | 9 | 6 | % | 17 | 10 | % | ||||||||||
Emission Control | (13 | ) | (9 | )% | (6 | ) | (4 | )% | ||||||||
Total Europe Aftermarket | (4 | ) | (1 | )% | 11 | 3 | % | |||||||||
South America & India | 158 | 42 | % | 96 | 29 | % | ||||||||||
Total Europe, South America & India | 399 | 20 | % | 345 | 20 | % | ||||||||||
Asia | 137 | 36 | % | 108 | 37 | % | ||||||||||
Australia | 23 | 18 | % | 6 | 4 | % | ||||||||||
Total Asia Pacific | 160 | 31 | % | 114 | 27 | % | ||||||||||
Total Tenneco | $ | 1,288 | 28 | % | $ | 955 | 26 | % | ||||||||
Year Ended December 31, 2013 Versus Year Ended December 31, 2012 Dollar and Percent Increase (Decrease) | |||||||||||||
Revenues | Percent | Value-add Revenues excluding Currency | Percent | ||||||||||
(Millions Except Percent Amounts) | |||||||||||||
Clean Air Division | |||||||||||||
North America | $ | 152 | 6 | % | $ | 120 | 8 | % | |||||
Europe, South America & India | 208 | 12 | % | 133 | 12 | % | |||||||
Asia Pacific | 158 | 23 | % | 100 | 17 | % | |||||||
Total Clean Air Division | 518 | 11 | % | 353 | 11 | % | |||||||
Ride Performance Division | |||||||||||||
North America | 42 | 3 | % | 48 | 4 | % | |||||||
Europe, South America & India | 5 | — | % | 41 | 4 | % | |||||||
Asia Pacific | 36 | 20 | % | 39 | 21 | % | |||||||
Total Ride Performance Division | 83 | 3 | % | 128 | 5 | % | |||||||
Total Tenneco Inc. | $ | 601 | 8 | % | $ | 481 | 8 | % |
Year Ended | ||||||||||||||||
December 31, | Increase | |||||||||||||||
2010 | 2009 | (Decrease) | % Increase | |||||||||||||
(Number of Vehicles in Thousands) | ||||||||||||||||
North America | 11,912 | 8,566 | 3,346 | 39 | % | |||||||||||
Europe | 19,290 | 16,844 | 2,446 | 15 | % | |||||||||||
South America | 4,014 | 3,697 | 317 | 9 | % | |||||||||||
India | 3,242 | 2,402 | 840 | 35 | % | |||||||||||
Total Europe, South America & India | 26,546 | 22,943 | 3,603 | 16 | % | |||||||||||
China | 16,786 | 12,886 | 3,900 | 30 | % | |||||||||||
Australia | 239 | 222 | 17 | 8 | % |
45
Year Ended December 31, | |||||||||||
2013 | 2012 | Increase (Decrease) | % Increase (Decrease) | ||||||||
(Number of Vehicles in Thousands) | |||||||||||
North America | 16,184 | 15,434 | 750 | 5 | % | ||||||
Europe | 19,331 | 19,298 | 33 | — | % | ||||||
South America | 4,536 | 4,291 | 245 | 6 | % | ||||||
India | 3,648 | 3,802 | (154 | ) | (4 | )% | |||||
Total Europe, South America & India | 27,515 | 27,391 | 124 | — | % | ||||||
China | 20,818 | 18,235 | 2,583 | 14 | % | ||||||
Australia | 208 | 221 | (13 | ) | (6 | )% |
Year Ended December 31, 2009 | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Substrate | Excluding | |||||||||||||||||||
Revenues | Sales | Currency and | ||||||||||||||||||
Currency | Excluding | Excluding | Substrate | |||||||||||||||||
Revenues | Impact | Currency | Currency | Sales | ||||||||||||||||
(Millions) | ||||||||||||||||||||
North America Original Equipment | ||||||||||||||||||||
Ride Control | $ | 382 | $ | (4 | ) | $ | 386 | $ | — | $ | 386 | |||||||||
Emission Control | 1,154 | (2 | ) | 1,156 | 530 | 626 | ||||||||||||||
Total North America Original Equipment | 1,536 | (6 | ) | 1,542 | 530 | 1,012 | ||||||||||||||
North America Aftermarket | ||||||||||||||||||||
Ride Control | 406 | (4 | ) | 410 | — | 410 | ||||||||||||||
Emission Control | 150 | (2 | ) | 152 | — | 152 | ||||||||||||||
Total North America Aftermarket | 556 | (6 | ) | 562 | — | 562 | ||||||||||||||
Total North America | 2,092 | (12 | ) | 2,104 | 530 | 1,574 | ||||||||||||||
Europe Original Equipment | ||||||||||||||||||||
Ride Control | 421 | (25 | ) | 446 | — | 446 | ||||||||||||||
Emission Control | 917 | (178 | ) | 1,095 | 305 | 790 | ||||||||||||||
Total Europe Original Equipment | 1,338 | (203 | ) | 1,541 | 305 | 1,236 | ||||||||||||||
Europe Aftermarket | ||||||||||||||||||||
Ride Control | 181 | (14 | ) | 195 | — | 195 | ||||||||||||||
Emission Control | 154 | (16 | ) | 170 | — | 170 | ||||||||||||||
Total Europe Aftermarket | 335 | (30 | ) | 365 | — | 365 | ||||||||||||||
South America & India | 374 | (40 | ) | 414 | 50 | 364 | ||||||||||||||
Total Europe, South America & India | 2,047 | (273 | ) | 2,320 | 355 | 1,965 | ||||||||||||||
Asia | 380 | 6 | 374 | 84 | 290 | |||||||||||||||
Australia | 130 | (20 | ) | 150 | 11 | 139 | ||||||||||||||
Total Asia Pacific | 510 | (14 | ) | 524 | 95 | 429 | ||||||||||||||
Total Tenneco | $ | 4,649 | $ | (299 | ) | $ | 4,948 | $ | 980 | $ | 3.968 | |||||||||
Year Ended December 31, 2012 | |||||||||||||||||||
Revenues | Substrate Sales | Value-add Revenues | Currency Impact on Value-add Revenues | Value-add Revenues excluding Currency | |||||||||||||||
(Millions) | |||||||||||||||||||
Clean Air Division | |||||||||||||||||||
North America | $ | 2,506 | $ | 997 | $ | 1,509 | $ | — | $ | 1,509 | |||||||||
Europe, South America & India | 1,726 | 570 | 1,156 | (113 | ) | 1,269 | |||||||||||||
Asia Pacific | 694 | 93 | 601 | — | 601 | ||||||||||||||
Total Clean Air Division | 4,926 | 1,660 | 3,266 | (113 | ) | 3,379 | |||||||||||||
Ride Performance Division | |||||||||||||||||||
North America | 1,213 | — | 1,213 | — | 1,213 | ||||||||||||||
Europe, South America & India | 1,041 | — | 1,041 | (120 | ) | 1,161 | |||||||||||||
Asia Pacific | 183 | — | 183 | (2 | ) | 185 | |||||||||||||
Total Ride Performance Division | 2,437 | — | 2,437 | (122 | ) | 2,559 | |||||||||||||
Total Tenneco Inc. | $ | 7,363 | $ | 1,660 | $ | 5,703 | $ | (235 | ) | $ | 5,938 |
47
Year Ended December 31, 2008 | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Substrate | Excluding | |||||||||||||||||||
Revenues | Sales | Currency and | ||||||||||||||||||
Currency | Excluding | Excluding | Substrate | |||||||||||||||||
Revenues | Impact | Currency | Currency | Sales | ||||||||||||||||
(Millions) | ||||||||||||||||||||
North America Original Equipment | ||||||||||||||||||||
Ride Control | $ | 493 | $ | — | $ | 493 | $ | — | $ | 493 | ||||||||||
Emission Control | 1,591 | — | 1,591 | 773 | 818 | |||||||||||||||
Total North America Original Equipment | 2,084 | — | 2,084 | 773 | 1,311 | |||||||||||||||
North America Aftermarket | ||||||||||||||||||||
Ride Control | 390 | — | 390 | — | 390 | |||||||||||||||
Emission Control | 156 | — | 156 | — | 156 | |||||||||||||||
Total North America Aftermarket | 546 | — | 546 | — | 546 | |||||||||||||||
Total North America | 2,630 | — | 2,630 | 773 | 1,857 | |||||||||||||||
Europe Original Equipment | ||||||||||||||||||||
Ride Control | 479 | — | 479 | — | 479 | |||||||||||||||
Emission Control | 1,487 | — | 1,487 | 539 | 948 | |||||||||||||||
Total Europe Original Equipment | 1,966 | — | 1,966 | 539 | 1,427 | |||||||||||||||
Europe Aftermarket | ||||||||||||||||||||
Ride Control | 213 | — | 213 | — | 213 | |||||||||||||||
Emission Control | 190 | — | 190 | — | 190 | |||||||||||||||
Total Europe Aftermarket | 403 | — | 403 | — | 403 | |||||||||||||||
South America & India | 389 | — | 389 | 55 | 334 | |||||||||||||||
Total Europe, South America and India | 2,758 | — | 2,758 | 594 | 2,164 | |||||||||||||||
Asia | 342 | — | 342 | 109 | 233 | |||||||||||||||
Australia | 186 | — | 186 | 16 | 170 | |||||||||||||||
Total Asia Pacific | 528 | — | 528 | 125 | 403 | |||||||||||||||
Total Tenneco | $ | 5,916 | $ | — | $ | 5,916 | $ | 1,492 | $ | 4,424 | ||||||||||
Year Ended December 31, 2011 | |||||||||||||||||||
Revenues | Substrate Sales | Value-add Revenues | Currency Impact on Value-add Revenues | Value-add Revenues excluding Currency | |||||||||||||||
(Millions) | |||||||||||||||||||
Clean Air Division | |||||||||||||||||||
North America | $ | 2,288 | $ | 971 | $ | 1,317 | $ | — | $ | 1,317 | |||||||||
Europe, South America & India | 1,849 | 597 | 1,252 | — | 1,252 | ||||||||||||||
Asia Pacific | 624 | 110 | 514 | — | 514 | ||||||||||||||
Total Clean Air Division | 4,761 | 1,678 | 3,083 | — | 3,083 | ||||||||||||||
Ride Performance Division | |||||||||||||||||||
North America | 1,126 | — | 1,126 | — | 1,126 | ||||||||||||||
Europe, South America & India | 1,164 | — | 1,164 | — | 1,164 | ||||||||||||||
Asia Pacific | 154 | — | 154 | — | 154 | ||||||||||||||
Total Ride Performance Division | 2,444 | — | 2,444 | — | 2,444 | ||||||||||||||
Total Tenneco Inc. | $ | 7,205 | $ | 1,678 | $ | 5,527 | $ | — | $ | 5,527 |
48
Year Ended December 31, 2009 | ||||||||||||||||
Versus Year Ended December 31, 2008 | ||||||||||||||||
Dollar and Percent Increase (Decrease) | ||||||||||||||||
Revenues | ||||||||||||||||
Excluding | ||||||||||||||||
Currency and | ||||||||||||||||
Substrate | ||||||||||||||||
Revenues | Percent | Sales | Percent | |||||||||||||
(Millions Except Percent Amounts) | ||||||||||||||||
North America Original Equipment | ||||||||||||||||
Ride Control | $ | (111 | ) | (23 | )% | $ | (107 | ) | (22 | )% | ||||||
Emission Control | (437 | ) | (27 | )% | (192 | ) | (23 | )% | ||||||||
Total North America Original Equipment | (548 | ) | (26 | )% | (299 | ) | (23 | )% | ||||||||
North America Aftermarket | ||||||||||||||||
Ride Control | 16 | 4 | % | 20 | 5 | % | ||||||||||
Emission Control | (6 | ) | (4 | )% | (4 | ) | (3 | )% | ||||||||
Total North America Aftermarket | 10 | 2 | % | 16 | 3 | % | ||||||||||
Total North America | (538 | ) | (20 | )% | (283 | ) | (15 | )% | ||||||||
Europe Original Equipment | ||||||||||||||||
Ride Control | (58 | ) | (12 | )% | (33 | ) | (7 | )% | ||||||||
Emission Control | (570 | ) | (38 | )% | (158 | ) | (17 | )% | ||||||||
Total Europe Original Equipment | (628 | ) | (32 | )% | (191 | ) | (13 | )% | ||||||||
Europe Aftermarket | ||||||||||||||||
Ride Control | (32 | ) | (15 | )% | (18 | ) | (8 | )% | ||||||||
Emission Control | (36 | ) | (19 | )% | (20 | ) | (11 | )% | ||||||||
Total Europe Aftermarket | (68 | ) | (17 | )% | (38 | ) | (9 | )% | ||||||||
South America & India | (15 | ) | (4 | )% | 30 | 9 | % | |||||||||
Total Europe, South America & India | (711 | ) | (26 | )% | (199 | ) | (9 | )% | ||||||||
Asia | 38 | 11 | % | 57 | 25 | % | ||||||||||
Australia | (56 | ) | (30 | )% | (31 | ) | (18 | )% | ||||||||
Total Asia Pacific | (18 | ) | (3 | )% | 26 | 6 | % | |||||||||
Total Tenneco | $ | (1,267 | ) | (21 | )% | $ | (456 | ) | (10 | )% | ||||||
Year Ended December 31, 2012 Versus Year Ended December 31, 2011 Dollar and Percent Increase (Decrease) | |||||||||||
Revenues | Percent | Value-add Revenues excluding Currency | Percent | ||||||||
(Millions Except Percent Amounts) | |||||||||||
Clean Air Division | |||||||||||
North America | 218 | 10 | % | 192 | 15 | % | |||||
Europe, South America & India | (123 | ) | (7 | )% | 17 | 1 | % | ||||
Asia Pacific | 70 | 11 | % | 87 | 17 | % | |||||
Total Clean Air Division | 165 | 3 | % | 296 | 10 | % | |||||
Ride Performance Division | |||||||||||
North America | 87 | 8 | % | 87 | 8 | % | |||||
Europe, South America & India | (123 | ) | (11 | )% | (3 | ) | — | % | |||
Asia Pacific | 29 | 19 | % | 31 | 20 | % | |||||
Total Ride Performance Division | (7 | ) | — | % | 115 | 5 | % | ||||
Total Tenneco Inc. | 158 | 2 | % | 411 | 7 | % |
Year Ended | ||||||||||||||||
December 31, | Increase | |||||||||||||||
2009 | 2008 | (Decrease) | % Increase | |||||||||||||
(Number of Vehicles in Thousands) | ||||||||||||||||
North America | 8,566 | 12,592 | (4,026 | ) | (32 | )% | ||||||||||
Europe | 16,844 | 21,204 | (4,360 | ) | (21 | )% | ||||||||||
South America | 3,697 | 3,765 | (68 | ) | (2 | )% | ||||||||||
India | 2,402 | 2,045 | 357 | 17 | % | |||||||||||
Total Europe, South America & India | 22,943 | 27,014 | (4,071 | ) | (15 | )% | ||||||||||
China | 12,886 | 8,483 | 4,403 | 52 | % | |||||||||||
Australia | 222 | 323 | (101 | ) | (31 | )% |
49
Year Ended December 31, | |||||||||||
2012 | 2011 | Increase (Decrease) | % Increase (Decrease) | ||||||||
(Number of Vehicles in Thousands) | |||||||||||
North America | 15,434 | 13,126 | 2,308 | 18 | % | ||||||
Europe | 19,298 | 20,159 | (861 | ) | (4 | )% | |||||
South America | 4,291 | 4,312 | (21 | ) | — | % | |||||
India | 3,802 | 3,600 | 202 | 6 | % | ||||||
Total Europe, South America & India | 27,391 | 28,071 | (680 | ) | (2 | )% | |||||
China | 18,235 | 17,276 | 959 | 6 | % | ||||||
Australia | 221 | 222 | (1 | ) | — | % |
Year Ended December 31, | ||||||||||||
2010 | 2009 | Change | ||||||||||
(Millions) | ||||||||||||
North America | $ | 155 | $ | 42 | $ | 113 | ||||||
Europe, South America and India | 76 | 20 | 56 | |||||||||
Asia Pacific | 50 | 30 | 20 | |||||||||
$ | 281 | $ | 92 | $ | 189 | |||||||
50
Year Ended | ||||||||
December 31, | ||||||||
2010 | 2009 | |||||||
(Millions) | ||||||||
North America | ||||||||
Restructuring and related expenses | $ | 14 | $ | 17 | ||||
Pension Charges(1) | 6 | — | ||||||
Environmental reserve(2) | — | 5 | ||||||
Europe, South America and India | ||||||||
Restructuring and related expenses | 3 | 4 | ||||||
Asia Pacific | ||||||||
Restructuring and related expenses | 2 | — |
51
Year Ended | ||||||||||||
December 31, | ||||||||||||
2009 | 2008 | Change | ||||||||||
(Millions) | ||||||||||||
North America | $ | 42 | $ | (107 | ) | $ | 149 | |||||
Europe, South America and India | 20 | 85 | (65 | ) | ||||||||
Asia Pacific | 30 | 19 | 11 | |||||||||
$ | 92 | $ | (3 | ) | $ | 95 | ||||||
Year Ended December 31, | Change | ||||||||||
2013 | 2012 | ||||||||||
(Millions) | |||||||||||
Clean Air Division | |||||||||||
North America | $ | 229 | $ | 202 | $ | 27 | |||||
Europe, South America & India | 57 | 54 | 3 | ||||||||
Asia Pacific | 84 | 71 | 13 | ||||||||
Total Clean Air Division | 370 | 327 | 43 | ||||||||
Ride Performance Division | |||||||||||
North America | 124 | 122 | 2 | ||||||||
Europe, South America & India | (7 | ) | 41 | (48 | ) | ||||||
Asia Pacific | 22 | 5 | 17 | ||||||||
Total Ride Performance Division | 139 | 168 | (29 | ) | |||||||
Other | (85 | ) | $ | (67 | ) | $ | (18 | ) | |||
Total Tenneco Inc. | $ | 424 | $ | 428 | $ | (4 | ) |
�� | ||||||||
Year Ended | ||||||||
December 31, | ||||||||
2009 | 2008 | |||||||
(Millions) | ||||||||
North America | ||||||||
Restructuring and related expenses | $ | 17 | $ | 16 | ||||
Environmental reserve(1) | 5 | — | ||||||
New aftermarket customer changeover costs(2) | — | 7 | ||||||
Goodwill impairment charge(3) | — | 114 | ||||||
Europe, South America and India | ||||||||
Restructuring and related expenses | 4 | 22 | ||||||
Asia Pacific | ||||||||
Restructuring and related expenses | — | 2 |
Year Ended December 31, | |||||||
2013 | 2012 | ||||||
(Millions) | |||||||
Clean Air Division | |||||||
Europe, South America & India | |||||||
Restructuring and related expenses | $ | 8 | $ | 7 | |||
Asia Pacific | |||||||
Restructuring and related expenses | 3 | — | |||||
Total Clean Air Division | $ | 11 | $ | 7 | |||
Ride Performance Division | |||||||
North America | |||||||
Restructuring and related expenses | $ | 1 | $ | 1 | |||
Pullman property recoveries (1) | — | (5 | ) | ||||
Europe, South America & India | |||||||
Restructuring and related expenses | 62 | 5 | |||||
Asset impairment charge (2) | — | 7 | |||||
Asia Pacific | |||||||
Restructuring and related expenses | 2 | — | |||||
Total Ride Performance Division | $ | 65 | $ | 8 | |||
Other | |||||||
Restructuring and related expenses | $ | 2 | $ | — |
(1) |
(2) |
Year Ended December 31, | Change | ||||||||||
2012 | 2011 | ||||||||||
(Millions) | |||||||||||
Clean Air Division | |||||||||||
North America | $ | 202 | $ | 172 | $ | 30 | |||||
Europe, South America & India | 54 | 79 | (25 | ) | |||||||
Asia Pacific | 71 | 47 | 24 | ||||||||
Total Clean Air Division | 327 | 298 | 29 | ||||||||
Ride Performance Division | |||||||||||
North America | 122 | 76 | 46 | ||||||||
Europe, South America & India | 41 | 69 | (28 | ) | |||||||
Asia Pacific | 5 | (6 | ) | 11 | |||||||
Total Ride Performance Division | 168 | 139 | 29 | ||||||||
Other | (67 | ) | $ | (58 | ) | $ | (9 | ) | |||
Total Tenneco Inc. | $ | 428 | $ | 379 | $ | 49 |
Year Ended December 31, | |||||||
2012 | 2011 | ||||||
(Millions) | |||||||
Clean Air Division | |||||||
Europe, South America & India | |||||||
Restructuring and related expenses | $ | 7 | $ | 3 | |||
Asia Pacific | |||||||
Restructuring and related expenses | — | 2 | |||||
Goodwill impairment charge (3) | — | 1 | |||||
Total Clean Air Division | $ | 7 | $ | 6 | |||
Ride Performance Division | |||||||
North America | |||||||
Restructuring and related expenses | $ | 1 | $ | 2 | |||
Pullman property recoveries (1) | (5 | ) | — | ||||
Europe, South America & India | |||||||
Restructuring and related expenses | 5 | — | |||||
Asset impairment charge (2) | 7 | — | |||||
Asia Pacific | |||||||
Restructuring and related expenses | — | 1 | |||||
Goodwill impairment charge (3) | — | 10 | |||||
Total Ride Performance Division | $ | 8 | $ | 13 |
(1) | Benefit from property recoveries related to transactions originated by The Pullman Company before being acquired by Tenneco in 1996. |
(2) | Non-cash asset impairment charge related to certain assets of our European ride performance business. |
(3) | Non-cash asset impairment charge related to goodwill for Tenneco’s |
52
Year Ended | ||||||||||||
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
North America | 6 | % | 2 | % | (4 | )% | ||||||
Europe, South America and India | 3 | % | 1 | % | 3 | % | ||||||
Asia Pacific | 7 | % | 6 | % | 4 | % | ||||||
Total Tenneco | 5 | % | 2 | % | — |
Year Ended December 31, | |||||
2013 | 2012 | 2011 | |||
Clean Air Division | |||||
North America | 9% | 8% | 8% | ||
Europe, South America & India | 3% | 3% | 4% | ||
Asia Pacific | 10% | 10% | 8% | ||
Total Clean Air Division | 7% | 7% | 6% | ||
Ride Performance Division | |||||
North America | 10% | 10% | 7% | ||
Europe, South America & India | (1)% | 4% | 6% | ||
Asia Pacific | 10% | 3% | (4)% | ||
Total Ride Performance Division | 6% | 7% | 6% | ||
Total Tenneco Inc. | 5% | 6% | 5% |
53
54
December 31, | December 31, | |||||||||||||||||||
2009 | 2010 | Impact of | 2010 | |||||||||||||||||
Restructuring | Cash | Exchange | Reserve | Restructuring | ||||||||||||||||
Reserve | Payments | Rates | Adjustments | Reserve | ||||||||||||||||
(Millions) | ||||||||||||||||||||
Severance | $ | 15 | (7 | ) | — | (1 | ) | $ | 7 |
December 31, 2012 Restructuring Reserve | 2013 Expenses | 2013 Cash Payments | Impact of Exchange Rates | December 31, 2013 Restructuring Reserve | ||||||||||||
(Millions) | ||||||||||||||||
Employee Severance, Termination Benefits and Other Related Costs | $ | — | 75 | (32 | ) | 1 | $ | 44 |
Year Ended | ||||||||
December 31, | ||||||||
2010 | 2009 | |||||||
(Millions) | ||||||||
Cash provided (used) by: | ||||||||
Operating activities | $ | 244 | $ | 241 | ||||
Investing activities | $ | (157 | ) | (119 | ) | |||
Financing activities | $ | (30 | ) | (87 | ) |
Year Ended December 31, | |||||||
2013 | 2012 | ||||||
(Millions) | |||||||
Cash provided (used) by: | |||||||
Operating activities | $ | 503 | $ | 365 | |||
Investing activities | (266 | ) | (273 | ) | |||
Financing activities | (175 | ) | (89 | ) |
56
Year Ended December 31, | |||||||
2012 | 2011 | ||||||
(Millions) | |||||||
Cash provided (used) by: | |||||||
Operating activities | $ | 365 | $ | 245 | |||
Investing activities | (273 | ) | (224 | ) | |||
Financing activities | (89 | ) | (26 | ) |
Year Ended | ||||||||
December 31, | ||||||||
2009 | 2008 | |||||||
(Millions) | ||||||||
Cash provided (used) by: | ||||||||
Operating activities | $ | 241 | $ | 160 | ||||
Investing activities | (119 | ) | (261 | ) | ||||
Financing activities | (87 | ) | (58 | ) |
57
58
2010A | 2011 | 2012 | 2015 | |||||||||||||
(Number of Vehicles in Millions) | ||||||||||||||||
North America | 11.9 | 12.7 | 13.9 | 16.6 | ||||||||||||
Europe | 19.3 | 19.8 | 20.6 | 23.2 | ||||||||||||
China | 16.8 | 18.0 | 19.9 | 24.3 | ||||||||||||
South America | 4.0 | 4.5 | 4.6 | 5.4 |
2010A | 2011 | 2012 | 2015 | |||||||||||||
(Number of Vehicles in Thousands) | ||||||||||||||||
North America | 270 | 360 | 468 | 439 | ||||||||||||
Europe | 387 | 499 | 643 | 708 | ||||||||||||
China | 1,116 | 1,002 | 1,029 | 1,077 | ||||||||||||
Brazil | 176 | 188 | 161 | 185 |
2010A | 2011 | 2012 | 2015 | |||||||||||||
(Number of Vehicles in Thousands) | ||||||||||||||||
U.S. (³25hp) | 198 | 210 | 229 | 266 | ||||||||||||
Europe (³50hp) | 369 | 390 | 421 | 470 |
Year Ended December 31, | % Change | |||||||||
2013 | 2012 | |||||||||
(Millions) | ||||||||||
Short-term debt and maturities classified as current | $ | 83 | $ | 113 | (27 | )% | ||||
Long-term debt | 1,019 | 1,067 | (4 | ) | ||||||
Total debt | 1,102 | 1,180 | (7 | ) | ||||||
Total redeemable noncontrolling interests | 20 | 15 | 33 | |||||||
Total noncontrolling interests | 39 | 45 | (13 | ) | ||||||
Tenneco Inc. shareholders’ equity | 433 | 246 | 76 | |||||||
Total equity | 472 | 291 | 62 | |||||||
Total capitalization | $ | 1,594 | $ | 1,486 | 7 | % |
Year Ended | ||||||||||||
December 31, | ||||||||||||
2010 | 2009 | % Change | ||||||||||
(Millions) | ||||||||||||
Short-term debt and maturities classified as current | $ | 63 | $ | 75 | (16 | )% | ||||||
Long-term debt | 1,160 | 1,145 | 1 | |||||||||
Total debt | 1,223 | 1,220 | — | |||||||||
Total redeemable noncontrolling interests | 12 | 7 | 71 | |||||||||
Total noncontrolling interests | 39 | 32 | 22 | |||||||||
Tenneco Inc. shareholders’ equity | (4 | ) | (21 | ) | 81 | |||||||
Total equity | 35 | 11 | 218 | |||||||||
Total capitalization | $ | 1,270 | $ | 1,238 | (3 | ) | ||||||
60
61
12/24/2008 | 2/23/2009 | 3/2/2009 | 5/15/2009 | 8/14/2009 | 3/1/2010 | |||||||||||||||||||||||
thru | thru | thru | thru | thru | thru | Beginning | ||||||||||||||||||||||
2/22/2009 | 3/1/2009 | 5/14/2009 | 8/13/2009 | 2/28/2010 | 6/2/2010 | 6/3/2010 | ||||||||||||||||||||||
Applicable Margin over LIBOR for Revolving Loans | 3.00 | % | 5.50 | % | 4.50 | % | 5.00 | % | 5.50 | % | 4.50 | % | 4.50 | % | ||||||||||||||
Applicable Margin over LIBOR for Term Loan B Loans | — | — | — | — | — | — | 4.75 | % | ||||||||||||||||||||
Applicable Margin over LIBOR for Term Loan A Loans | 3.00 | % | 5.50 | % | 4.50 | % | 5.00 | % | 5.50 | % | 4.50 | % | — | |||||||||||||||
Applicable Margin over LIBOR forTranche B-1 Loans | 3.00 | % | 5.50 | % | 5.00 | % | 5.00 | % | 5.50 | % | 5.00 | % | 5.00 | % | ||||||||||||||
Applicable Margin over Prime-based Loans | 2.00 | % | 4.50 | % | 3.50 | % | 4.00 | % | 4.50 | % | 3.50 | % | — | |||||||||||||||
Applicable Margin over Prime for Revolving Loans | — | — | — | — | — | — | 3.50 | % | ||||||||||||||||||||
Applicable Margin over Prime for Term Loan B Loans | — | — | — | — | — | — | 3.75 | % | ||||||||||||||||||||
Applicable Margin over Prime forTranche B-1 Loans | — | — | — | — | — | — | 4.00 | % | ||||||||||||||||||||
Applicable Margin over Federal Funds for Revolving Loans | — | — | — | — | — | — | 3.50 | % | ||||||||||||||||||||
Applicable Margin over Federal Funds for Term Loan B Loans | — | — | — | — | — | — | 3.75 | % | ||||||||||||||||||||
Applicable Margin over Federal Funds forTranche B-1 Loans | 2.50 | % | 5.00 | % | 4.00 | % | 4.50 | % | 5.00 | % | 4.00 | % | 4.00 | % | ||||||||||||||
Commitment Fee | 0.50 | % | 0.75 | % | 0.50 | % | 0.50 | % | 0.75 | % | 0.50 | % | 0.75 | % |
62
Quarter Ended | ||||||||||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||||||||||||||||||||
2010 | 2010 | 2010 | 2010 | |||||||||||||||||||||||||||||
Req. | Act. | Req. | Act. | Req. | Act. | Req. | Act. | |||||||||||||||||||||||||
Leverage Ratio (maximum) | 5.50 | 2.77 | 4.50 | 2.42 | 4.25 | 2.41 | 4.25 | 2.24 | ||||||||||||||||||||||||
Interest Coverage Ratio (minimum) | 2.00 | 3.04 | 2.25 | 3.70 | 2.30 | 3.97 | 2.35 | 3.99 |
Quarter Ended | |||||||||||||||||||||||
March 31, 2013 | June 30, 2013 | September 30, 2013 | December 31, 2013 | ||||||||||||||||||||
Req. | Act. | Req. | Act. | Req. | Act. | Req. | Act. | ||||||||||||||||
Leverage Ratio (maximum) | 3.50 | 1.98 | 3.50 | 1.79 | 3.50 | 1.86 | 3.50 | 1.39 | |||||||||||||||
Interest Coverage Ratio (minimum) | 2.55 | 8.39 | 2.55 | 8.74 | 2.55 | 9.09 | 2.55 | 9.89 |
Interest | ||||||||
Leverage | Coverage | |||||||
Period Ending | Ratio | Ratio | ||||||
March 31, 2011 | 4.00 | 2.55 | ||||||
June 30, 2011 | 3.75 | 2.55 | ||||||
September 30, 2011 | 3.50 | 2.55 | ||||||
December 31, 2011 | 3.50 | 2.55 | ||||||
Each quarter thereafter | 3.50 | 2.75 |
Aggregate Senior | ||||
Note Maximum | ||||
Proforma Consolidated Leverage Ratio | Amount | |||
(Millions) | ||||
Greater than or equal to 3.0x | $ | 20 | ||
Greater than or equal to 2.5x | $ | 100 | ||
Less than 2.5x | $ | 125 |
Pro forma Consolidated Leverage Ratio | Aggregate Senior Note Maximum Amount | ||
(Millions) | |||
Greater than or equal to 3.0x | $ | 20 | |
Greater than or equal to 2.5x | $ | 100 | |
Greater than or equal to 2.0x | $ | 200 | |
Less than 2.0x | no limit |
63
64
65
Payments due in: | ||||||||||||||||||||||||||||
Beyond | ||||||||||||||||||||||||||||
2011(a) | 2012 | 2013 | 2014 | 2015 | 2015 | Total | ||||||||||||||||||||||
(Millions) | ||||||||||||||||||||||||||||
Obligations: | ||||||||||||||||||||||||||||
Revolver borrowings | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Senior term loans | 2 | 2 | 2 | 2 | 2 | 139 | 149 | |||||||||||||||||||||
Senior subordinated notes | 20 | — | — | — | — | — | 20 | |||||||||||||||||||||
Senior notes | — | — | — | — | 250 | 725 | 975 | |||||||||||||||||||||
Customer notes | 1 | 1 | 2 | — | — | — | 4 | |||||||||||||||||||||
Capital leases | 1 | — | — | — | — | — | 1 | |||||||||||||||||||||
Other subsidiary debt | 1 | 1 | 1 | 1 | 1 | 7 | 12 | |||||||||||||||||||||
Short-term debt | 61 | — | — | — | — | — | 61 | |||||||||||||||||||||
Debt and capital lease obligations | 86 | 4 | 5 | 3 | 253 | 871 | 1,222 | |||||||||||||||||||||
Operating leases | 26 | 19 | 13 | 8 | 5 | 17 | 88 | |||||||||||||||||||||
Interest payments | 104 | 97 | 84 | 60 | 73 | 366 | 784 | |||||||||||||||||||||
Capital commitments | 48 | — | — | — | — | — | 48 | |||||||||||||||||||||
Total Payments | $ | 264 | $ | 120 | $ | 102 | $ | 71 | $ | 331 | $ | 1,254 | $ | 2,142 | ||||||||||||||
Payments due in: | |||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Beyond 2018 | Total | |||||||||||||||||||||
(Millions) | |||||||||||||||||||||||||||
Obligations: | |||||||||||||||||||||||||||
Revolver borrowings | $ | — | $ | — | $ | — | $ | 58 | $ | — | $ | — | $ | 58 | |||||||||||||
Senior term loans | 22 | 34 | 47 | 125 | — | — | 228 | ||||||||||||||||||||
Senior notes | — | — | — | — | 225 | 500 | 725 | ||||||||||||||||||||
Debentures | — | — | — | — | — | 1 | 1 | ||||||||||||||||||||
Other subsidiary debt and capital lease obligations | 1 | 1 | 1 | 1 | 1 | 4 | 9 | ||||||||||||||||||||
Short-term debt | 81 | — | — | — | — | — | 81 | ||||||||||||||||||||
Debt and capital lease obligations | 104 | 35 | 48 | 184 | 226 | 505 | 1,102 | ||||||||||||||||||||
Operating leases | 40 | 30 | 21 | 15 | 11 | 25 | 142 | ||||||||||||||||||||
Interest payments | 85 | 81 | 63 | 52 | 52 | 68 | 401 | ||||||||||||||||||||
Capital commitments | 100 | — | — | — | — | — | 100 | ||||||||||||||||||||
Total payments | $ | 329 | $ | 146 | $ | 132 | $ | 251 | $ | 63 | $ | 598 | $ | 1,745 |
66
67
68
69
Notional Amount | ||||||||
in Foreign Currency | ||||||||
(Millions) | ||||||||
Australian dollars | —Purchase | 3 | ||||||
British pounds | —Purchase | 4 | ||||||
European euro | —Sell | (16 | ) | |||||
Japanese yen | —Purchase | 135 | ||||||
—Sell | (842 | ) | ||||||
Polish zloty | —Purchase | 33 | ||||||
South African rand | —Purchase | 144 | ||||||
U.S. dollars | —Purchase | 15 | ||||||
—Sell | (15 | ) | ||||||
Other | —Sell | ( | ||||||
2 | ||||||||
) |
71
72
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(Millions) | |||||||||||
Beginning Balance | $ | 23 | $ | 26 | $ | 33 | |||||
Accruals related to product warranties | 20 | 15 | 11 | ||||||||
Reductions for payments made | (19 | ) | (18 | ) | (18 | ) | |||||
Ending Balance | $ | 24 | $ | 23 | $ | 26 |
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. |
73
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. |
Page | ||||
74
75
76
77
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions Except Share and Per Share Amounts) | ||||||||||||
Revenues | ||||||||||||
Net sales and operating revenues | $ | 5,937 | $ | 4,649 | $ | 5,916 | ||||||
Costs and expenses | ||||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 4,900 | 3,875 | 5,063 | |||||||||
Goodwill impairment charge | — | — | 114 | |||||||||
Engineering, research, and development | 117 | 97 | 127 | |||||||||
Selling, general, and administrative | 417 | 344 | 392 | |||||||||
Depreciation and amortization of other intangibles | 216 | 221 | 222 | |||||||||
5,650 | 4,537 | 5,918 | ||||||||||
Other income (expense) | ||||||||||||
Loss on sale of receivables | (3 | ) | (9 | ) | (10 | ) | ||||||
Other income (expense) | (3 | ) | (11 | ) | 9 | |||||||
(6 | ) | (20 | ) | (1 | ) | |||||||
Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 281 | 92 | (3 | ) | ||||||||
Interest expense (net of interest capitalized of $4 million, $4 million and $6 million, respectively) | 149 | 133 | 113 | |||||||||
Income tax expense | 69 | 13 | 289 | |||||||||
Net income (loss) | 63 | (54 | ) | (405 | ) | |||||||
Less: Net income attributable to noncontrolling interests | 24 | 19 | 10 | |||||||||
Net income (loss) attributable to Tenneco Inc. | $ | 39 | $ | (73 | ) | $ | (415 | ) | ||||
Earnings (loss) per share | ||||||||||||
Weighted average shares of common stock outstanding — | ||||||||||||
Basic | 59,208,103 | 48,572,463 | 46,406,095 | |||||||||
Diluted | 60,998,694 | 48,572,463 | 46,406,095 | |||||||||
Basic earnings (loss) per share of common stock | $ | 0.65 | $ | (1.50 | ) | $ | (8.95 | ) | ||||
Diluted earnings (loss) per share of common stock | $ | 0.63 | $ | (1.50 | ) | $ | (8.95 | ) |
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(Millions Except Share and Per Share Amounts) | |||||||||||
Revenues | |||||||||||
Net sales and operating revenues | $ | 7,964 | $ | 7,363 | $ | 7,205 | |||||
Costs and expenses | |||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 6,734 | 6,170 | 6,037 | ||||||||
Goodwill impairment charge | — | — | 11 | ||||||||
Engineering, research, and development | 144 | 126 | 133 | ||||||||
Selling, general, and administrative | 453 | 427 | 428 | ||||||||
Depreciation and amortization of other intangibles | 205 | 205 | 207 | ||||||||
7,536 | 6,928 | 6,816 | |||||||||
Other income (expense) | |||||||||||
Loss on sale of receivables | (4 | ) | (4 | ) | (5 | ) | |||||
Other expense | — | (3 | ) | (5 | ) | ||||||
(4 | ) | (7 | ) | (10 | ) | ||||||
Earnings before interest expense, income taxes, and noncontrolling interests | 424 | 428 | 379 | ||||||||
Interest expense (net of interest capitalized of $4 million each for 2013, 2012 and 2011, respectively) | 80 | 105 | 108 | ||||||||
Earnings before income taxes and noncontrolling interests | 344 | 323 | 271 | ||||||||
Income tax expense | 122 | 19 | 88 | ||||||||
Net income | 222 | 304 | 183 | ||||||||
Less: Net income attributable to noncontrolling interests | 39 | 29 | 26 | ||||||||
Net income attributable to Tenneco Inc. | $ | 183 | $ | 275 | $ | 157 | |||||
Earnings per share | |||||||||||
Weighted average shares of common stock outstanding — | |||||||||||
Basic | 60,474,492 | 59,985,677 | 59,884,139 | ||||||||
Diluted | 61,594,062 | 61,083,510 | 61,520,160 | ||||||||
Basic earnings per share of common stock | $ | 3.03 | $ | 4.58 | $ | 2.62 | |||||
Diluted earnings per share of common stock | $ | 2.97 | $ | 4.50 | $ | 2.55 |
78
December 31, | ||||||||
2010 | 2009 | |||||||
(Millions) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 233 | $ | 167 | ||||
Receivables — | ||||||||
Customer notes and accounts, net | 796 | 572 | ||||||
Other | 30 | 24 | ||||||
Inventories | 547 | 428 | ||||||
Deferred income taxes | 38 | 35 | ||||||
Prepayments and other | 146 | 167 | ||||||
Total current assets | 1,790 | 1,393 | ||||||
Other assets: | ||||||||
Long-term receivables, net | 9 | 8 | ||||||
Goodwill | 89 | 89 | ||||||
Intangibles, net | 32 | 30 | ||||||
Deferred income taxes | 92 | 100 | ||||||
Other | 105 | 111 | ||||||
327 | 338 | |||||||
Plant, property, and equipment, at cost | 3,109 | 3,099 | ||||||
Less — Accumulated depreciation and amortization | (2,059 | ) | (1,989 | ) | ||||
1,050 | 1,110 | |||||||
$ | 3,167 | $ | 2,841 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Short-term debt (including current maturities of long-term debt) | $ | 63 | $ | 75 | ||||
Trade payables | 1,048 | 766 | ||||||
Accrued taxes | 51 | 36 | ||||||
Accrued interest | 13 | 22 | ||||||
Accrued liabilities | 227 | 257 | ||||||
Other | 66 | 45 | ||||||
Total current liabilities | 1,468 | 1,201 | ||||||
Long-term debt | 1,160 | 1,145 | ||||||
Deferred income taxes | 56 | 66 | ||||||
Postretirement benefits | 311 | 331 | ||||||
Deferred credits and other liabilities | 125 | 80 | ||||||
Commitments and contingencies | ||||||||
Total liabilities | 3,120 | 2,823 | ||||||
Redeemable noncontrolling interests | 12 | 7 | ||||||
Tenneco Inc. Shareholders’ equity: | ||||||||
Common stock | 1 | 1 | ||||||
Premium on common stock and other capital surplus | 3,008 | 3,005 | ||||||
Accumulated other comprehensive loss | (237 | ) | (212 | ) | ||||
Retained earnings (accumulated deficit) | (2,536 | ) | (2,575 | ) | ||||
236 | 219 | |||||||
Less — Shares held as treasury stock, at cost | 240 | 240 | ||||||
Total Tenneco Inc. shareholders’ equity | (4 | ) | (21 | ) | ||||
Noncontrolling interests | 39 | 32 | ||||||
Total equity | 35 | 11 | ||||||
Total liabilities, redeemable noncontrolling interests and equity | $ | 3,167 | $ | 2,841 | ||||
Year Ended December 31, 2013 | |||||||||||||||||||||||
Tenneco Inc. | Noncontrolling interests | Total | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | Comprehensive Income (Loss) | ||||||||||||||||||
(Millions) | |||||||||||||||||||||||
Net Income | $ | 183 | $ | 39 | $ | 222 | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||
Cumulative Translation Adjustment | |||||||||||||||||||||||
Balance January 1 | $ | (24 | ) | $ | 5 | $ | (19 | ) | |||||||||||||||
Translation of foreign currency statements | (37 | ) | (37 | ) | — | — | (37 | ) | (37 | ) | |||||||||||||
Balance December 31 | (61 | ) | 5 | (56 | ) | ||||||||||||||||||
Adjustment to the Liability for Pension and Postretirement Benefits | |||||||||||||||||||||||
Balance January 1 | (384 | ) | — | (384 | ) | ||||||||||||||||||
Adjustment to the Liability for Pension and Postretirement benefits, net of tax | 85 | 85 | 85 | 85 | |||||||||||||||||||
Balance December 31 | (299 | ) | (299 | ) | |||||||||||||||||||
Balance December 31 | $ | (360 | ) | $ | 5 | $ | (355 | ) | |||||||||||||||
Other comprehensive income | 48 | — | 48 | ||||||||||||||||||||
Comprehensive Income | $ | 231 | $ | 39 | $ | 270 |
Year Ended December 31, 2012 | |||||||||||||||||||||||
Tenneco Inc. | Noncontrolling interests | Total | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | Comprehensive Income (Loss) | ||||||||||||||||||
(Millions) | |||||||||||||||||||||||
Net Income | $ | 275 | $ | 29 | $ | 304 | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||
Cumulative Translation Adjustment | |||||||||||||||||||||||
Balance January 1 | $ | (30 | ) | $ | 4 | $ | (26 | ) | |||||||||||||||
Translation of foreign currency statements | 6 | 6 | 1 | 1 | 7 | 7 | |||||||||||||||||
Balance December 31 | (24 | ) | 5 | (19 | ) | ||||||||||||||||||
Adjustment to the Liability for Pension and Postretirement Benefits | |||||||||||||||||||||||
Balance January 1 | (352 | ) | — | (352 | ) | ||||||||||||||||||
Adjustment to the Liability for Pension and Postretirement benefits, net of tax | (32 | ) | (32 | ) | (32 | ) | (32 | ) | |||||||||||||||
Balance December 31 | (384 | ) | (384 | ) | |||||||||||||||||||
Balance December 31 | $ | (408 | ) | $ | 5 | $ | (403 | ) | |||||||||||||||
Other comprehensive income (loss) | (26 | ) | 1 | (25 | ) | ||||||||||||||||||
Comprehensive Income | $ | 249 | $ | 30 | $ | 279 |
Year Ended December 31, 2011 | |||||||||||||||||||||||
Tenneco Inc. | Noncontrolling interests | Total | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | Comprehensive Income (Loss) | ||||||||||||||||||
(Millions) | |||||||||||||||||||||||
Net Income | $ | 157 | $ | 26 | $ | 183 | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||
Cumulative Translation Adjustment | |||||||||||||||||||||||
Balance January 1 | $ | 8 | $ | 5 | $ | 13 | |||||||||||||||||
Translation of foreign currency statements | (38 | ) | (38 | ) | (1 | ) | (1 | ) | (39 | ) | (39 | ) | |||||||||||
Balance December 31 | (30 | ) | 4 | (26 | ) | ||||||||||||||||||
Adjustment to the Liability for Pension and Postretirement Benefits | |||||||||||||||||||||||
Balance January 1 | (250 | ) | — | (250 | ) | ||||||||||||||||||
Adjustment to the Liability for Pension and Postretirement benefits, net of tax | (102 | ) | (102 | ) | (102 | ) | (102 | ) | |||||||||||||||
Balance December 31 | (352 | ) | (352 | ) | |||||||||||||||||||
Balance December 31 | $ | (382 | ) | $ | 4 | $ | (378 | ) | |||||||||||||||
Other comprehensive loss | (140 | ) | (1 | ) | (141 | ) | |||||||||||||||||
Comprehensive Income | $ | 17 | $ | 25 | $ | 42 |
December 31, | |||||||
2013 | 2012 | ||||||
(Millions) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 275 | $ | 223 | |||
Restricted cash | 5 | — | |||||
Receivables — | |||||||
Customer notes and accounts, net | 1,041 | 966 | |||||
Other | 19 | 20 | |||||
Inventories | 656 | 667 | |||||
Deferred income taxes | 71 | 72 | |||||
Prepayments and other | 223 | 176 | |||||
Total current assets | 2,290 | 2,124 | |||||
Other assets: | |||||||
Long-term receivables, net | 14 | 4 | |||||
Goodwill | 69 | 72 | |||||
Intangibles, net | 30 | 35 | |||||
Deferred income taxes | 125 | 116 | |||||
Other | 127 | 135 | |||||
365 | 362 | ||||||
Plant, property, and equipment, at cost | 3,498 | 3,365 | |||||
Less — Accumulated depreciation and amortization | (2,323 | ) | (2,243 | ) | |||
1,175 | 1,122 | ||||||
Total Assets | $ | 3,830 | $ | 3,608 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Short-term debt (including current maturities of long-term debt) | $ | 83 | $ | 113 | |||
Accounts payable | 1,359 | 1,186 | |||||
Accrued taxes | 40 | 50 | |||||
Accrued interest | 10 | 10 | |||||
Accrued liabilities | 252 | 239 | |||||
Other | 94 | 51 | |||||
Total current liabilities | 1,838 | 1,649 | |||||
Long-term debt | 1,019 | 1,067 | |||||
Deferred income taxes | 28 | 27 | |||||
Postretirement benefits | 249 | 407 | |||||
Deferred credits and other liabilities | 204 | 152 | |||||
Commitments and contingencies | |||||||
Total liabilities | 3,338 | 3,302 | |||||
Redeemable noncontrolling interests | 20 | 15 | |||||
Tenneco Inc. Shareholders’ equity: | |||||||
Common stock | 1 | 1 | |||||
Premium on common stock and other capital surplus | 3,014 | 3,031 | |||||
Accumulated other comprehensive loss | (360 | ) | (408 | ) | |||
Retained earnings (accumulated deficit) | (1,921 | ) | (2,104 | ) | |||
734 | 520 | ||||||
Less — Shares held as treasury stock, at cost | 301 | 274 | |||||
Total Tenneco Inc. shareholders’ equity | 433 | 246 | |||||
Noncontrolling interests | 39 | 45 | |||||
Total equity | 472 | 291 | |||||
Total liabilities, redeemable noncontrolling interests and equity | $ | 3,830 | $ | 3,608 |
79
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(Millions) | |||||||||||
Operating Activities | |||||||||||
Net income | $ | 222 | $ | 304 | $ | 183 | |||||
Adjustments to reconcile net income to cash provided by operating activities — | |||||||||||
Goodwill impairment charge | — | — | 11 | ||||||||
Depreciation and amortization of other intangibles | 205 | 205 | 207 | ||||||||
Deferred income taxes | 5 | (65 | ) | (5 | ) | ||||||
Stock-based compensation | 13 | 11 | 8 | ||||||||
Loss on sale of assets | 1 | 4 | 4 | ||||||||
Changes in components of working capital — | |||||||||||
(Increase) decrease in receivables | (88 | ) | (9 | ) | (183 | ) | |||||
(Increase) decrease in inventories | 3 | (72 | ) | (64 | ) | ||||||
(Increase) decrease in prepayments and other current assets | (53 | ) | (21 | ) | (13 | ) | |||||
Increase (decrease) in payables | 161 | 12 | 144 | ||||||||
Increase (decrease) in accrued taxes | (10 | ) | 7 | (7 | ) | ||||||
Increase (decrease) in accrued interest | — | (3 | ) | — | |||||||
Increase (decrease) in other current liabilities | 64 | 10 | (7 | ) | |||||||
Change in long-term assets | 7 | 14 | 1 | ||||||||
Change in long-term liabilities | (32 | ) | (37 | ) | (41 | ) | |||||
Other | 5 | 5 | 7 | ||||||||
Net cash provided by operating activities | 503 | 365 | 245 | ||||||||
Investing Activities | |||||||||||
Proceeds from sale of assets | 8 | 3 | 4 | ||||||||
Cash payments for plant, property, and equipment | (244 | ) | (256 | ) | (213 | ) | |||||
Cash payments for software related intangible assets | (25 | ) | (13 | ) | (15 | ) | |||||
Cash payments for net assets purchased | — | (7 | ) | — | |||||||
Change in restricted cash | (5 | ) | — | — | |||||||
Net cash used by investing activities | (266 | ) | (273 | ) | (224 | ) | |||||
Financing Activities | |||||||||||
Retirement of long-term debt | (16 | ) | (411 | ) | (24 | ) | |||||
Issuance of long-term debt | — | 250 | 5 | ||||||||
Debt issuance costs of long-term debt | — | (13 | ) | (1 | ) | ||||||
Purchase of common stock under the share repurchase program | (27 | ) | (18 | ) | (16 | ) | |||||
Issuance of common stock | 20 | 5 | — | ||||||||
Tax benefit from stock-based compensation | 24 | — | — | ||||||||
Increase (decrease) in bank overdrafts | (6 | ) | 5 | 3 | |||||||
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivable | (22 | ) | 67 | 30 | |||||||
Net increase (decrease) in short-term borrowings secured by accounts receivable | (40 | ) | 50 | — | |||||||
Capital contribution from noncontrolling interest partner | — | 5 | 1 | ||||||||
Purchase of noncontrolling equity interest | (69 | ) | — | (4 | ) | ||||||
Distribution to noncontrolling interest partners | (39 | ) | (29 | ) | (20 | ) | |||||
Net cash used by financing activities | (175 | ) | (89 | ) | (26 | ) | |||||
Effect of foreign exchange rate changes on cash and cash equivalents | (10 | ) | 6 | (14 | ) | ||||||
Increase (decrease) in cash and cash equivalents | 52 | 9 | (19 | ) | |||||||
Cash and cash equivalents, January 1 | 223 | 214 | 233 | ||||||||
Cash and cash equivalents, December 31 (Note) | $ | 275 | $ | 223 | $ | 214 |
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions) | ||||||||||||
Operating Activities | ||||||||||||
Net income (loss) | $ | 63 | $ | (54 | ) | $ | (405 | ) | ||||
Adjustments to reconcile net income (loss) to cash provided by operating activities — | ||||||||||||
Depreciation and amortization of other intangibles | 216 | 221 | 222 | |||||||||
Goodwill impairment charge | — | — | 114 | |||||||||
Deferred income taxes | 4 | (24 | ) | 204 | ||||||||
Stock-based compensation | 9 | 7 | 10 | |||||||||
Loss on sale of assets | 3 | 9 | 10 | |||||||||
Changes in components of working capital — | ||||||||||||
(Increase) decrease in receivables | (231 | ) | (8 | ) | 126 | |||||||
(Increase) decrease in inventories | (122 | ) | 101 | 19 | ||||||||
(Increase) decrease in prepayments and other current assets | 20 | (55 | ) | 1 | ||||||||
Increase (decrease) in payables | 238 | (2 | ) | (181 | ) | |||||||
Increase (decrease) in accrued taxes | 12 | 10 | 4 | |||||||||
Increase (decrease) in accrued interest | (8 | ) | (1 | ) | — | |||||||
Increase (decrease) in other current liabilities | 20 | 20 | — | |||||||||
Change in long-term assets | 12 | 10 | 16 | |||||||||
Change in long-term liabilities | 6 | 2 | 19 | |||||||||
Other | 2 | 5 | 1 | |||||||||
Net cash provided by operating activities | 244 | 241 | 160 | |||||||||
Investing Activities | ||||||||||||
Proceeds from sale of assets | 3 | 5 | 3 | |||||||||
Cash payments for plant, property, and equipment | (151 | ) | (120 | ) | (233 | ) | ||||||
Cash payments for software related intangible assets | (12 | ) | (6 | ) | (15 | ) | ||||||
Acquisition of businesses, net of cash acquired | — | 1 | (16 | ) | ||||||||
Other | 3 | 1 | — | |||||||||
Net cash used by investing activities | (157 | ) | (119 | ) | (261 | ) | ||||||
Financing Activities | ||||||||||||
Issuance of common shares | — | 188 | 2 | |||||||||
Issuance of long-term debt | 880 | 6 | 1 | |||||||||
Debt issuance costs on long-term debt | (24 | ) | (8 | ) | (2 | ) | ||||||
Increase (decrease) in bank overdrafts | 2 | (23 | ) | (1 | ) | |||||||
Retirement of long-term debt | (864 | ) | (22 | ) | (6 | ) | ||||||
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt | (10 | ) | (218 | ) | 77 | |||||||
Distribution to noncontrolling interests partners | (14 | ) | (10 | ) | (13 | ) | ||||||
Net cash provided (used) by financing activities | (30 | ) | (87 | ) | 58 | |||||||
Effect of foreign exchange rate changes on cash and cash equivalents | 9 | 6 | (19 | ) | ||||||||
Increase (decrease) in cash and cash equivalents | 66 | 41 | (62 | ) | ||||||||
Cash and cash equivalents, January 1 | 167 | 126 | 188 | |||||||||
Cash and cash equivalents, December 31 (Note) | $ | 233 | $ | 167 | $ | 126 | ||||||
Supplemental Cash Flow Information | ||||||||||||
Cash paid during the year for interest | $ | 149 | $ | 131 | $ | 117 | ||||||
Cash paid during the year for income taxes (net of refunds) | 53 | 38 | 62 | |||||||||
Non-cash Investing and Financing Activities | ||||||||||||
Period ended balance of payables for plant, property, and equipment | $ | 29 | $ | 26 | $ | 28 | ||||||
Assumption of debt from business acquisition | — | — | 10 |
Supplemental Cash Flow Information | |||||||||||
Cash paid during the year for interest | $ | 79 | $ | 100 | $ | 106 | |||||
Cash paid during the year for income taxes (net of refunds) | 109 | 80 | 85 | ||||||||
Non-cash Investing and Financing Activities | |||||||||||
Period end balance of trade payables for plant, property, and equipment | $ | 52 | $ | 42 | $ | 35 |
Note: | Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase. |
80
Year Ended December 31, | ||||||||||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||
(Millions Except Share Amounts) | ||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||
Balance January 1 | 60,789,739 | $ | 1 | 48,314,490 | $ | — | 47,892,532 | $ | — | |||||||||||||||
Issued | — | — | 12,000,000 | 1 | — | — | ||||||||||||||||||
Issued pursuant to benefit plans | 142,643 | — | 283,195 | — | 238,982 | — | ||||||||||||||||||
Stock options exercised | 609,378 | — | 192,054 | — | 182,976 | — | ||||||||||||||||||
Balance December 31 | 61,541,760 | 1 | 60,789,739 | 1 | 48,314,490 | — | ||||||||||||||||||
Premium on Common Stock and Other Capital Surplus | ||||||||||||||||||||||||
Balance January 1 | 3,005 | 2,809 | 2,800 | |||||||||||||||||||||
Purchase of additional noncontrolling equity interest | (11 | ) | — | — | ||||||||||||||||||||
Premium on common stock issued | — | 188 | — | |||||||||||||||||||||
Premium on common stock issued pursuant to benefit plans | 14 | 8 | 9 | |||||||||||||||||||||
Balance December 31 | 3,008 | 3,005 | 2,809 | |||||||||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||
Balance January 1 | (212 | ) | (318 | ) | (73 | ) | ||||||||||||||||||
Other comprehensive income (loss) | (25 | ) | 106 | (245 | ) | |||||||||||||||||||
Balance December 31 | (237 | ) | (212 | ) | (318 | ) | ||||||||||||||||||
Retained Earnings (Accumulated Deficit) | ||||||||||||||||||||||||
Balance January 1 | (2,575 | ) | (2,502 | ) | (2,087 | ) | ||||||||||||||||||
Net income (loss) attributable to Tenneco Inc. | 39 | (73 | ) | (415 | ) | |||||||||||||||||||
Balance December 31 | (2,536 | ) | (2,575 | ) | (2,502 | ) | ||||||||||||||||||
Less — Common Stock Held as Treasury Stock, at Cost | ||||||||||||||||||||||||
Balance January 1 and December 31 | 1,294,692 | 240 | 1,294,692 | 240 | 1,294,692 | 240 | ||||||||||||||||||
Total Tenneco Inc. shareholders’ equity | $ | (4 | ) | $ | (21 | ) | $ | (251 | ) | |||||||||||||||
Noncontrolling interests: | ||||||||||||||||||||||||
Balance January 1 | 32 | 24 | 25 | |||||||||||||||||||||
Net income attributable to noncontrolling interests | 16 | 13 | 6 | |||||||||||||||||||||
Sale of twenty percent equity interest to Tenneco Inc. | (4 | ) | — | — | ||||||||||||||||||||
Other comprehensive income (loss) | 3 | — | — | |||||||||||||||||||||
Dividends declared | (8 | ) | (5 | ) | (7 | ) | ||||||||||||||||||
Balance December 31 | $ | 39 | $ | 32 | $ | 24 | ||||||||||||||||||
Total equity | $ | 35 | $ | 11 | $ | (227 | ) | |||||||||||||||||
81
Year Ended December 31, 2010 | ||||||||||||||||||||||||
Tenneco Inc. | Noncontrolling interests | Total | ||||||||||||||||||||||
Accumulated | Accumulated | Accumulated | ||||||||||||||||||||||
Other | Other | Other | ||||||||||||||||||||||
Comprehensive | Comprehensive | Comprehensive | Comprehensive | Comprehensive | Comprehensive | |||||||||||||||||||
Income | Income | Income | Income | Income | Income | |||||||||||||||||||
(Loss) | (Loss) | (Loss) | (Loss) | (Loss) | (Loss) | |||||||||||||||||||
(Millions) | ||||||||||||||||||||||||
Net Income | $ | 39 | $ | 24 | $ | 63 | ||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||
Cumulative Translation Adjustment | ||||||||||||||||||||||||
Balance January 1 | $ | 37 | $ | — | $ | 37 | ||||||||||||||||||
Translation of foreign currency statements | (29 | ) | (29 | ) | 5 | 5 | (24 | ) | (24 | ) | ||||||||||||||
Balance December 31 | 8 | 5 | 13 | |||||||||||||||||||||
Additional Liability for Pension and Postretirement Benefits | ||||||||||||||||||||||||
Balance January 1 | (249 | ) | — | (249 | ) | |||||||||||||||||||
Additional Liability for Pension and Postretirement benefits, net of tax | (1 | ) | (1 | ) | (1 | ) | (1 | ) | ||||||||||||||||
Balance December 31 | (250 | ) | (250 | ) | ||||||||||||||||||||
Balance December 31 | $ | (242 | ) | $ | 5 | $ | (237 | ) | ||||||||||||||||
Other comprehensive income (loss) | (30 | ) | 5 | (25 | ) | |||||||||||||||||||
Comprehensive Income | $ | 9 | $ | 29 | $ | 38 | ||||||||||||||||||
82
Year Ended December 31, 2009 | ||||||||||||||||||||||||
Tenneco Inc. | Noncontrolling interests | Total | ||||||||||||||||||||||
Accumulated | Accumulated | Accumulated | ||||||||||||||||||||||
Other | Other | Other | ||||||||||||||||||||||
Comprehensive | Comprehensive | Comprehensive | Comprehensive | Comprehensive | Comprehensive | |||||||||||||||||||
Income | Income | Income | Income | Income | Income | |||||||||||||||||||
(Loss) | (Loss) | (Loss) | (Loss) | (Loss) | (Loss) | |||||||||||||||||||
(Millions) | ||||||||||||||||||||||||
Net Income (Loss) | $ | (73 | ) | $ | 19 | $ | (54 | ) | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||
Cumulative Translation Adjustment | ||||||||||||||||||||||||
Balance January 1 | $ | (42 | ) | $ | — | $ | (42 | ) | ||||||||||||||||
Translation of foreign currency statements | 79 | 79 | — | — | 79 | 79 | ||||||||||||||||||
Balance December 31 | 37 | — | 37 | |||||||||||||||||||||
Additional Liability for Pension and Postretirement Benefits | ||||||||||||||||||||||||
Balance January 1 | (276 | ) | — | (276 | ) | |||||||||||||||||||
Additional liability for pension and postretirement benefits, net of tax of $1 million | 27 | 27 | 27 | 27 | ||||||||||||||||||||
Balance December 31 | (249 | ) | (249 | ) | ||||||||||||||||||||
Balance December 31 | $ | (212 | ) | $ | — | $ | (212 | ) | ||||||||||||||||
Other comprehensive income (loss) | 106 | — | 106 | |||||||||||||||||||||
Comprehensive Income (Loss) | $ | 33 | $ | 19 | $ | 52 | ||||||||||||||||||
83
Year Ended December 31, 2008 | ||||||||||||||||||||||||
Tenneco Inc. | Noncontrolling interests | Total | ||||||||||||||||||||||
Accumulated | Accumulated | Accumulated | ||||||||||||||||||||||
Other | Other | Other | ||||||||||||||||||||||
Comprehensive | Comprehensive | Comprehensive | Comprehensive | Comprehensive | Comprehensive | |||||||||||||||||||
Income | Income | Income | Income | Income | Income | |||||||||||||||||||
(Loss) | (Loss) | (Loss) | (Loss) | (Loss) | (Loss) | |||||||||||||||||||
(Millions) | ||||||||||||||||||||||||
Net Income (Loss) | $ | (415 | ) | $ | 10 | $ | (405 | ) | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||
Cumulative Translation Adjustment | ||||||||||||||||||||||||
Balance January 1 | $ | 85 | $ | — | $ | 85 | ||||||||||||||||||
Translation of foreign currency statements | (127 | ) | (127 | ) | — | — | (127 | ) | (127 | ) | ||||||||||||||
Balance December 31 | (42 | ) | — | (42 | ) | |||||||||||||||||||
Additional Liability for Pension and Postretirement Benefits | ||||||||||||||||||||||||
Balance January 1 | (158 | ) | — | (158 | ) | |||||||||||||||||||
Additional liability for pension and postretirement benefits, net of tax of $9 million | (118 | ) | (118 | ) | (118 | ) | (118 | ) | ||||||||||||||||
Balance December 31 | (276 | ) | (276 | ) | ||||||||||||||||||||
Balance December 31 | $ | (318 | ) | $ | — | $ | (318 | ) | ||||||||||||||||
Other comprehensive income (loss) | (245 | ) | — | (245 | ) | |||||||||||||||||||
Comprehensive Income (Loss) | $ | (660 | ) | $ | 10 | $ | (650 | ) | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||
(Millions Except Share Amounts) | ||||||||||||||||||||
Common Stock | ||||||||||||||||||||
Balance January 1 | 62,789,382 | $ | 1 | 62,101,335 | $ | 1 | 61,541,760 | $ | 1 | |||||||||||
Issued | — | — | — | — | — | — | ||||||||||||||
Issued pursuant to benefit plans | 156,213 | — | 149,398 | — | 49,871 | — | ||||||||||||||
Stock options exercised | 769,133 | — | 538,649 | — | 509,704 | — | ||||||||||||||
Balance December 31 | 63,714,728 | 1 | 62,789,382 | 1 | 62,101,335 | 1 | ||||||||||||||
Premium on Common Stock and Other Capital Surplus | ||||||||||||||||||||
Balance January 1 | 3,031 | 3,016 | 3,008 | |||||||||||||||||
Purchase of noncontrolling equity interest | (68 | ) | — | (2 | ) | |||||||||||||||
Premium on common stock issued pursuant to benefit plans | 51 | 15 | 10 | |||||||||||||||||
Balance December 31 | 3,014 | 3,031 | 3,016 | |||||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||||||
Balance January 1 | (408 | ) | (382 | ) | (237 | ) | ||||||||||||||
Other comprehensive loss | 48 | (26 | ) | (145 | ) | |||||||||||||||
Balance December 31 | (360 | ) | (408 | ) | (382 | ) | ||||||||||||||
Retained Earnings (Accumulated Deficit) | ||||||||||||||||||||
Balance January 1 | (2,104 | ) | (2,379 | ) | (2,536 | ) | ||||||||||||||
Net income attributable to Tenneco Inc. | 183 | 275 | 157 | |||||||||||||||||
Balance December 31 | (1,921 | ) | (2,104 | ) | (2,379 | ) | ||||||||||||||
Less — Common Stock Held as Treasury Stock, at Cost | ||||||||||||||||||||
Balance January 1 | 2,294,692 | 274 | 1,694,692 | 256 | 1,294,692 | 240 | ||||||||||||||
Purchase of common stock through stock repurchase program | 550,000 | 27 | 600,000 | 18 | 400,000 | 16 | ||||||||||||||
Balance December 31 | 2,844,692 | 301 | 2,294,692 | 274 | 1,694,692 | 256 | ||||||||||||||
Total Tenneco Inc. shareholders’ equity | $ | 433 | $ | 246 | $ | — | ||||||||||||||
Noncontrolling interests: | ||||||||||||||||||||
Balance January 1 | 45 | 43 | 39 | |||||||||||||||||
Net income | 24 | 20 | 19 | |||||||||||||||||
Capital contribution | — | 3 | — | |||||||||||||||||
Sale of noncontrolling equity interest | (1 | ) | — | — | ||||||||||||||||
Other comprehensive income (loss) | — | 1 | (1 | ) | ||||||||||||||||
Dividends declared | (29 | ) | (22 | ) | (14 | ) | ||||||||||||||
Balance December 31 | $ | 39 | $ | 45 | $ | 43 | ||||||||||||||
Total equity | $ | 472 | $ | 291 | $ | 43 |
84
1. | Summary of Accounting Policies |
2010 | 2009 | 2008 | ||||||||||
(Millions) | ||||||||||||
Balance January 1 | $ | 7 | $ | 7 | $ | 6 | ||||||
Net income attributable to redeemable noncontrolling interests | 8 | 5 | 4 | |||||||||
Other comprehensive income (loss) | 2 | — | — | |||||||||
Dividends declared | (5 | ) | (5 | ) | (3 | ) | ||||||
Balance December 31 | $ | 12 | $ | 7 | $ | 7 | ||||||
85
2013 | 2012 | 2011 | |||||||||
(Millions) | |||||||||||
Balance January 1 | $ | 15 | $ | 12 | $ | 12 | |||||
Net income attributable to redeemable noncontrolling interests | 14 | 9 | 7 | ||||||||
Sale of 25 percent equity interest to Tenneco Inc | — | — | (2 | ) | |||||||
Capital Contributions | — | 2 | 1 | ||||||||
Dividends declared | (9 | ) | (8 | ) | (6 | ) | |||||
Balance December 31 | $ | 20 | $ | 15 | $ | 12 |
2010 | 2009 | |||||||
(Millions) | ||||||||
Finished goods | $ | 222 | $ | 175 | ||||
Work in process | 164 | 116 | ||||||
Raw materials | 118 | 95 | ||||||
Materials and supplies | 43 | 42 | ||||||
$ | 547 | $ | 428 | |||||
2013 | 2012 | ||||||
(Millions) | |||||||
Finished goods | $ | 267 | $ | 273 | |||
Work in process | 202 | 207 | |||||
Raw materials | 130 | 133 | |||||
Materials and supplies | 57 | 54 | |||||
$ | 656 | $ | 667 |
86
Year Ended December 31, 2010 | ||||||||||||||||
Europe, | ||||||||||||||||
South | ||||||||||||||||
North | America | Asia | ||||||||||||||
America | and India | Pacific | Total | |||||||||||||
(Millions) | ||||||||||||||||
Balance as January 1 | ||||||||||||||||
Goodwill | $ | 330 | $ | 87 | $ | 10 | $ | 427 | ||||||||
Accumulated impairment losses | (306 | ) | (32 | ) | — | (338 | ) | |||||||||
24 | 55 | 10 | 89 | |||||||||||||
Translation adjustments | — | (1 | ) | 1 | — | |||||||||||
Balance at December 31 | ||||||||||||||||
Goodwill | 330 | 85 | 12 | 427 | ||||||||||||
Accumulated impairment losses | (306 | ) | (31 | ) | (1 | ) | (338 | ) | ||||||||
$ | 24 | $ | 54 | $ | 11 | $ | 89 | |||||||||
Year Ended December 31, 2009 | ||||||||||||||||
Europe, | ||||||||||||||||
South | ||||||||||||||||
North | America | Asia | ||||||||||||||
America | and India | Pacific | Total | |||||||||||||
(Millions) | ||||||||||||||||
Balance as January 1 | ||||||||||||||||
Goodwill | $ | 330 | $ | 95 | $ | 8 | $ | 433 | ||||||||
Accumulated impairment losses | (306 | ) | (32 | ) | — | (338 | ) | |||||||||
24 | 63 | 8 | 95 | |||||||||||||
Acquisition of business opening balance sheet adjustments | — | (10 | ) | — | (10 | ) | ||||||||||
Translation adjustments | — | 2 | 2 | 4 | ||||||||||||
Balance at December 31 | ||||||||||||||||
Goodwill | 330 | 87 | 10 | 427 | ||||||||||||
Accumulated impairment losses | (306 | ) | (32 | ) | — | (338 | ) | |||||||||
$ | 24 | $ | 55 | $ | 10 | $ | 89 | |||||||||
Clean Air Division | Ride Performance Division | ||||||||||||||||||||||||||
North America | Europe, South America & India | Asia Pacific | North America | Europe, South America & India | Asia Pacific | Total | |||||||||||||||||||||
(Millions) | |||||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 15 | $ | 13 | $ | — | $ | 10 | $ | 36 | $ | — | $ | 74 | |||||||||||||
Translation Adjustment | (1 | ) | — | — | — | (1 | ) | — | (2 | ) | |||||||||||||||||
Balance at December 31, 2012 | 14 | 14 | — | 10 | 34 | — | 72 | ||||||||||||||||||||
Translation Adjustment | — | — | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||||
Balance at December 31, 2013 | 14 | 14 | — | 10 | 31 | — | 69 |
87
December 31, 2010 | December 31, 2009 | |||||||||||||||
Gross Carrying | Accumulated | Gross Carrying | Accumulated | |||||||||||||
Value | Amortization | Value | Amortization | |||||||||||||
(Millions) | (Millions) | |||||||||||||||
Customer contract | $ | 8 | $ | (2 | ) | $ | 8 | $ | (2 | ) | ||||||
Patents | 5 | (4 | ) | 4 | (3 | ) | ||||||||||
Technology rights | 21 | (5 | ) | 22 | (5 | ) | ||||||||||
Other | 6 | (1 | ) | 2 | — | |||||||||||
Total | $ | 40 | $ | (12 | ) | $ | 36 | $ | (10 | ) | ||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||
Gross Carrying Value | Accumulated Amortization | Gross Carrying Value | Accumulated Amortization | ||||||||||||
(Millions) | (Millions) | ||||||||||||||
Customer contract | $ | 8 | $ | (4 | ) | $ | 8 | $ | (3 | ) | |||||
Patents | 3 | (2 | ) | 3 | (1 | ) | |||||||||
Technology rights | 26 | (12 | ) | 26 | (7 | ) | |||||||||
Other | 11 | (1 | ) | 11 | (1 | ) | |||||||||
Total | $ | 48 | $ | (19 | ) | $ | 48 | $ | (12 | ) |
2010 | 2009 | |||||||
(Millions) | ||||||||
Land, buildings, and improvements | $ | 524 | $ | 516 | ||||
Machinery and equipment | 2,406 | 2,431 | ||||||
Other, including construction in progress | 179 | 152 | ||||||
$ | 3,109 | $ | 3,099 | |||||
2013 | 2012 | ||||||
(Millions) | |||||||
Land, buildings, and improvements | $ | 579 | $ | 563 | |||
Machinery and equipment | 2,673 | 2,574 | |||||
Other, including construction in progress | 246 | 228 | |||||
$ | 3,498 | $ | 3,365 |
88
Future reversals of existing taxable temporary differences; | ||
89
90
91
2. | Earnings |
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions Except Share and Per Share Amounts) | ||||||||||||
Basic earnings (loss) per share — | ||||||||||||
Net earnings (loss) attributable to Tenneco Inc. | $ | 39 | $ | (73 | ) | $ | (415 | ) | ||||
Weighted average shares of common stock outstanding | 59,208,103 | 48,572,463 | 46,406,095 | |||||||||
Earnings (loss) per average share of common stock | $ | 0.65 | $ | (1.50 | ) | $ | (8.95 | ) | ||||
Diluted earnings (loss) per share — | ||||||||||||
Net earnings (loss) attributable to Tenneco Inc. | $ | 39 | $ | (73 | ) | $ | (415 | ) | ||||
Weighted average shares of common stock outstanding | 59,208,103 | 48,572,463 | 46,406,095 | |||||||||
Effect of dilutive securities: | ||||||||||||
Restricted stock | 441,561 | — | — | |||||||||
Stock options | 1,349,030 | — | — | |||||||||
Weighted average shares of common stock outstanding including dilutive securities | 60,998,694 | 48,572,463 | 46,406,095 | |||||||||
Earnings (loss) per average share of common stock | $ | 0.63 | $ | (1.50 | ) | $ | (8.95 | ) | ||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(Millions Except Share and Per Share Amounts) | |||||||||||
Basic earnings per share — | |||||||||||
Net income attributable to Tenneco Inc. | $ | 183 | $ | 275 | $ | 157 | |||||
Average shares of common stock outstanding | 60,474,492 | 59,985,677 | 59,884,139 | ||||||||
Earnings per average share of common stock | $ | 3.03 | $ | 4.58 | $ | 2.62 | |||||
Diluted earnings per share — | |||||||||||
Net income attributable to Tenneco Inc. | $ | 183 | $ | 275 | $ | 157 | |||||
Average shares of common stock outstanding | 60,474,492 | 59,985,677 | 59,884,139 | ||||||||
Effect of dilutive securities: | |||||||||||
Restricted stock | 205,020 | 140,609 | 168,539 | ||||||||
Stock options | 914,550 | 957,224 | 1,467,482 | ||||||||
Average shares of common stock outstanding including dilutive securities | 61,594,062 | 61,083,510 | 61,520,160 | ||||||||
Earnings per average share of common stock | $ | 2.97 | $ | 4.50 | $ | 2.55 |
3. | Acquisitions |
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(Millions) | |||||||||||
Net income attributable to Tenneco Inc. | $ | 183 | $ | 275 | $ | 157 | |||||
Decrease in equity for purchase of noncontrolling equity interest | (68 | ) | — | (2 | ) | ||||||
Net income attributable to Tenneco Inc. shareholders less purchase of noncontrolling equity interest | 115 | 275 | 155 |
93
December 31, | December 31, | |||||||||||||||||||
2009 | 2010 | Impact of | 2010 | |||||||||||||||||
Restructuring | Cash | Exchange | Reserve | Restructuring | ||||||||||||||||
Reserve | Payments | Rates | Adjustments | Reserve | ||||||||||||||||
(Millions) | ||||||||||||||||||||
Severance | $ | 15 | (7 | ) | — | (1 | ) | $ | 7 |
December 31, 2012 Restructuring Reserve | 2013 Expenses | 2013 Cash Payments | Impact of Exchange Rates | December 31, 2013 Restructuring Reserve | ||||||||||||
(Millions) | ||||||||||||||||
Employee Severance, Termination Benefits and Other Related Costs | $ | — | 75 | (32 | ) | 1 | $ | 44 |
94
2010 | 2009 | |||||||
(Millions) | ||||||||
Tenneco Inc. — | ||||||||
Revolver borrowings due 2014, average effective interest rate 5.4% in 2010 and 5.6% in 2009 | $ | — | $ | — | ||||
Senior Term Loans due 2012 and 2016, average effective interest rate 5.1% in 2010 and 5.7% in 2009 | 149 | 133 | ||||||
73/4% Senior Notes due 2018 | 225 | — | ||||||
101/4% Senior Secured Notes due 2013, including unamortized premium | — | 249 | ||||||
67/8% Senior Notes due 2020 | 500 | — | ||||||
85/8% Senior Subordinated Notes due 2014(a) | 20 | 500 | ||||||
81/8% Senior Notes due 2015 | 250 | 250 | ||||||
Debentures due 2012 through 2025, average effective interest rate 8.4% in 2010 and 2009 | 1 | 1 | ||||||
Customer Notes due 2013, average effective interest rate 8.0% in 2010 and 2009 | 4 | 6 | ||||||
Other subsidiaries — | ||||||||
Notes due 2011 through 2025, average effective interest rate 3.0% in 2010 and 4.0% in 2009 | 13 | 12 | ||||||
1,162 | 1,151 | |||||||
Less — maturities classified as current | 2 | 6 | ||||||
Total long-term debt | $ | 1,160 | $ | 1,145 | ||||
2013 | 2012 | ||||||
(Millions) | |||||||
Tenneco Inc. — | |||||||
Revolver borrowings due 2017, average effective interest rate 2.7% in 2013 and 1.2% in 2012 | $ | 58 | $ | 92 | |||
Senior Term Loan due 2014 through 2017, average effective interest rate 2.7% in 2013 and 3.0% in 2012 | 228 | 241 | |||||
7 3/4% Senior Notes due 2018 | 225 | 225 | |||||
6 7/8% Senior Notes due 2020 | 500 | 500 | |||||
Debentures due 2014 through 2026, average effective interest rate 7.5 in 2013 and 8.4% in 2012 | 1 | 1 | |||||
Customer Notes due 2013, average effective interest rate 8.0% in 2013 and 2012 | — | 1 | |||||
Other subsidiaries — | |||||||
Notes due 2014 through 2026, average effective interest rate 1.3% in both 2013 and 2012 | 9 | 10 | |||||
1,021 | 1,070 | ||||||
Less — maturities classified as current | 2 | 3 | |||||
Total long-term debt | $ | 1,019 | $ | 1,067 |
95
2010 | 2009 | |||||||
(Millions) | ||||||||
Maturities classified as current | $ | 2 | $ | 6 | ||||
Notes payable | 61 | 69 | ||||||
Total short-term debt | $ | 63 | $ | 75 | ||||
2013 | 2012 | ||||||
(Millions) | |||||||
Maturities classified as current | $ | 2 | $ | 3 | |||
Short-term borrowings | 81 | 110 | |||||
Total short-term debt | $ | 83 | $ | 113 |
2010 | 2009 | |||||||
Notes Payable(a) | Notes Payable(a) | |||||||
(Dollars in Millions) | ||||||||
Outstanding borrowings at end of year | $ | 61 | $ | 69 | ||||
Weighted average interest rate on outstanding borrowings at end of year(b) | 7.8 | % | 6.9 | % | ||||
Approximate maximum month-end outstanding borrowings during year | $ | 201 | $ | 71 | ||||
Approximate average month-end outstanding borrowings during year | $ | 109 | $ | 60 | ||||
Weighted average interest rate on approximate average month-end outstanding borrowings during year(b) | 5.5 | % | 7.8 | % |
Notes Payable(a) | |||||||
2013 | 2012 | ||||||
(Dollars in Millions) | |||||||
Outstanding borrowings at end of year | $ | 81 | $ | 110 | |||
Weighted average interest rate on outstanding borrowings at end of year(b) | 4.4 | % | 5.3 | % | |||
Approximate maximum month-end outstanding borrowings during year | $ | 177 | $ | 156 | |||
Approximate average month-end outstanding borrowings during year | $ | 116 | $ | 123 | |||
Weighted average interest rate on approximate average month-end outstanding borrowings during year(b) | 4.7 | % | 5.5 | % |
(a) | Includes borrowings under both committed credit facilities and uncommitted lines of credit and similar arrangements. |
(b) | This calculation does not include the commitment fees to be paid on the unused revolving credit facility balances which are recorded as interest expense for accounting purposes. |
Committed Credit Facilities(a) as of December 31, 2010 | ||||||||||||||||||||
Letters of | ||||||||||||||||||||
Term | Commitments | Borrowings | Credit(b) | Available | ||||||||||||||||
(Millions) | ||||||||||||||||||||
Tenneco Inc. revolving credit agreement | 2014 | 622 | — | — | 622 | |||||||||||||||
Tenneco Inc.tranche B-1 letter of credit/revolving loan agreement | 2014 | 130 | — | 53 | 77 | |||||||||||||||
Tenneco Inc. Senior Term Loans | 2016 | 149 | 149 | — | — | |||||||||||||||
Subsidiaries’ credit agreements | 2011-2030 | 84 | 72 | — | 12 | |||||||||||||||
$ | 985 | $ | 221 | $ | 53 | $ | 711 | |||||||||||||
Committed Credit Facilities(a) as of December 31, 2013 | |||||||||||||||||
Term | Commitments | Borrowings | Letters of Credit(b) | Available | |||||||||||||
(Millions) | |||||||||||||||||
Tenneco Inc. revolving credit agreement | 2017 | 850 | 58 | 37 | 755 | ||||||||||||
Tenneco Inc. tranche A term facility | 2017 | 228 | 228 | — | — | ||||||||||||
Subsidiaries’ credit agreements | 2014-2026 | 110 | 90 | — | 20 | ||||||||||||
$ | 1,188 | $ | 376 | $ | 37 | $ | 775 |
(a) | We generally are required to pay commitment fees on the unused portion of the total commitment. |
(b) | Letters of credit reduce the available borrowings under the |
96
97
98
12/24/2008 | 2/23/2009 | 3/2/2009 | 5/15/2009 | 8/14/2009 | 3/1/2010 | |||||||||||||||||||||||
thru | thru | thru | thru | thru | thru | Beginning | ||||||||||||||||||||||
2/22/2009 | 3/1/2009 | 5/14/2009 | 8/13/2009 | 2/28/2010 | 6/2/2010 | 6/3/2010 | ||||||||||||||||||||||
Applicable Margin over LIBOR for Revolving Loans | 3.00 | % | 5.50 | % | 4.50 | % | 5.00 | % | 5.50 | % | 4.50 | % | 4.50 | % | ||||||||||||||
Applicable Margin over LIBOR for Term Loan B Loans | — | — | — | — | — | — | 4.75 | % | ||||||||||||||||||||
Applicable Margin over LIBOR for Term Loan A Loans | 3.00 | % | 5.50 | % | 4.50 | % | 5.00 | % | 5.50 | % | 4.50 | % | — | |||||||||||||||
Applicable Margin over LIBOR forTranche B-1 Loans | 3.00 | % | 5.50 | % | 5.00 | % | 5.00 | % | 5.50 | % | 5.00 | % | 5.00 | % | ||||||||||||||
Applicable Margin over Prime-based Loans | 2.00 | % | 4.50 | % | 3.50 | % | 4.00 | % | 4.50 | % | 3.50 | % | — | |||||||||||||||
Applicable Margin over Prime for Revolving Loans | — | — | — | — | — | — | 3.50 | % | ||||||||||||||||||||
Applicable Margin over Prime for Term Loan B Loans | — | — | — | — | — | — | 3.75 | % | ||||||||||||||||||||
Applicable Margin over Prime forTranche B-1 Loans | — | — | — | — | — | — | 4.00 | % | ||||||||||||||||||||
Applicable Margin over Federal Funds for Revolving Loans | — | — | — | — | — | — | 3.50 | % | ||||||||||||||||||||
Applicable Margin over Federal Funds for Term Loan B Loans | — | — | — | — | — | — | 3.75 | % | ||||||||||||||||||||
Applicable Margin over Federal Funds forTranche B-1 Loans | 2.50 | % | 5.00 | % | 4.00 | % | 4.50 | % | 5.00 | % | 4.00 | % | 4.00 | % | ||||||||||||||
Commitment Fee | 0.50 | % | 0.75 | % | 0.50 | % | 0.50 | % | 0.75 | % | 0.50 | % | 0.75 | % |
Quarter Ended | ||||||||||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||||||||||||||||||||
2010 | 2010 | 2010 | 2010 | |||||||||||||||||||||||||||||
Req. | Act. | Req. | Act. | Req. | Act. | Req. | Act. | |||||||||||||||||||||||||
Leverage Ratio (maximum) | 5.50 | 2.77 | 4.50 | 2.42 | 4.25 | 2.41 | 4.25 | 2.24 | ||||||||||||||||||||||||
Interest Coverage Ratio (minimum) | 2.00 | 3.04 | 2.25 | 3.70 | 2.30 | 3.97 | 2.35 | 3.99 |
99
Quarter Ended | |||||||||||||||||||||||
March 31, 2013 | June 30, 2013 | September 30, 2013 | December 31, 2013 | ||||||||||||||||||||
Req. | Act. | Req. | Act. | Req. | Act. | Req. | Act. | ||||||||||||||||
Leverage Ratio (maximum) | 3.50 | 1.98 | 3.50 | 1.79 | 3.50 | 1.86 | 3.50 | 1.39 | |||||||||||||||
Interest Coverage Ratio (minimum) | 2.55 | 8.39 | 2.55 | 8.74 | 2.55 | 9.09 | 2.55 | 9.89 |
Interest | ||||||||
Leverage | Coverage | |||||||
Period Ending | Ratio | Ratio | ||||||
March 31, 2011 | 4.00 | 2.55 | ||||||
June 30, 2011 | 3.75 | 2.55 | ||||||
September 30, 2011 | 3.50 | 2.55 | ||||||
December 31, 2011 | 3.50 | 2.55 | ||||||
Each quarter thereafter | 3.50 | 2.75 |
Proforma Consolidated | Aggregate Senior Note | |||
Leverage Ratio | Maximum Amount | |||
(Millions) | ||||
Greater than or equal to 3.0x | $ | 20 | ||
Greater than or equal to 2.5x | $ | 100 | ||
Less than 2.5x | $ | 125 |
Pro forma Consolidated Leverage Ratio | Aggregate Senior Note Maximum Amount | ||
(Millions) | |||
Greater than or equal to 3.0x | $ | 20 | |
Greater than or equal to 2.5x | $ | 100 | |
Greater than or equal to 2.0x | $ | 200 | |
Less than 2.0x | no limit |
100
101
102
Financial Instruments |
December 31, 2010 | December 31, 2009 | |||||||||||||||
Carrying | Carrying | |||||||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||||||
(Millions) | ||||||||||||||||
Long-term debt (including current maturities) | $ | 1,162 | $ | 1,201 | $ | 1,151 | $ | 1,168 | ||||||||
Instruments with off-balance sheet risk: | ||||||||||||||||
Foreign exchange forward contracts | 2 | 2 | 2 | 2 |
December 31, 2013 | December 31, 2012 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
(Millions) | |||||||||||||||
Long-term debt (including current maturities) | $ | 1,021 | $ | 1,089 | $ | 1,070 | $ | 1,136 | |||||||
Instruments with off-balance sheet risk: | |||||||||||||||
Foreign exchange forward contracts: | |||||||||||||||
Asset derivative contracts | — | — | 1 | 1 |
Fair Value of Derivative Instruments | ||||||||||||||||||||||||
December 31, 2010 | December 31, 2009 | |||||||||||||||||||||||
Asset | Liability | Asset | Liability | |||||||||||||||||||||
Derivatives | Derivatives | Total | Derivatives | Derivatives | Total | |||||||||||||||||||
Foreign exchange forward contracts | $ | 2 | $ | — | $ | 2 | $ | 3 | $ | 1 | $ | 2 |
103
Fair Value of Derivative Instruments | |||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | Total | Asset Derivatives | Liability Derivatives | Total | ||||||||||||||||||
(Millions) | |||||||||||||||||||||||
Foreign exchange forward contracts | $ | — | $ | — | $ | — | $ | 1 | $ | — | $ | 1 |
December 31, 2010 | December 31, 2009 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
(Millions) | ||||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||
Foreign exchange forward contracts | n/a | $2 | n/a | n/a | $2 | n/a | ||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||
Foreign exchange forward contracts | n/a | $ | — | n/a | n/a | $ | — | n/a |
December 31, 2013 | December 31, 2012 | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||
(Millions) | |||||||||||||||||||
Financial Assets: | |||||||||||||||||||
Foreign exchange contracts | $ | — | $ | — | $ | — | n/a | $ | 1 | n/a |
Level 1 | Quoted prices in active markets for identical assets or liabilities. | |
Level 2 | Inputs, other than quoted prices in active markets, that are observable either directly or indirectly. | |
Level 3 | Unobservable inputs based on our own assumptions. |
Notional Amount | |||||||
(Millions) | |||||||
Australian dollars | —Purchase | 3 | |||||
British pounds | —Purchase | 4 | |||||
European euro | —Sell | (16 | ) | ||||
Japanese yen | —Purchase | 135 | |||||
—Sell | (842 | ) | |||||
Polish zloty | —Purchase | 33 | |||||
South African rand | —Purchase | 144 | |||||
U.S. dollars | —Purchase | 15 | |||||
—Sell | (15 | ) | |||||
Other | —Sell | ( | |||||
2 | |||||||
) |
104
Year Ended | ||||||||||||
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions) | ||||||||||||
U.S. income (loss) before income taxes | $ | (45 | ) | $ | (118 | ) | $ | (257 | ) | |||
Foreign income before income taxes | 177 | 77 | 141 | |||||||||
Income (loss) before income taxes and noncontrolling interests | $ | 132 | $ | (41 | ) | $ | (116 | ) | ||||
105
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(Millions) | |||||||||||
U.S. income before income taxes | $ | 150 | $ | 166 | $ | 55 | |||||
Foreign income before income taxes | 194 | 157 | 216 | ||||||||
Income before income taxes and noncontrolling interests | $ | 344 | $ | 323 | $ | 271 |
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions) | ||||||||||||
Current — | ||||||||||||
U.S. | $ | — | $ | (2 | ) | $ | 42 | |||||
State and local | 1 | 4 | — | |||||||||
Foreign | 64 | 35 | 12 | |||||||||
65 | 37 | 54 | ||||||||||
Deferred — | ||||||||||||
U.S. | — | (18 | ) | 190 | ||||||||
State and local | — | (3 | ) | 45 | ||||||||
Foreign | 4 | (3 | ) | — | ||||||||
4 | (24 | ) | 235 | |||||||||
Income tax expense | $ | 69 | $ | 13 | $ | 289 | ||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(Millions) | |||||||||||
Current — | |||||||||||
U.S. federal | $ | 25 | $ | — | $ | — | |||||
State and local | 4 | 4 | 2 | ||||||||
Foreign | 81 | 89 | 91 | ||||||||
110 | 93 | 93 | |||||||||
Deferred — | |||||||||||
U.S. federal | (4 | ) | (25 | ) | — | ||||||
State and local | 2 | (20 | ) | — | |||||||
Foreign | 14 | (29 | ) | (5 | ) | ||||||
12 | (74 | ) | (5 | ) | |||||||
Income tax expense | $ | 122 | $ | 19 | $ | 88 |
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions) | ||||||||||||
Income tax expense (benefit) computed at the statutory U.S. federal income tax rate | $ | 46 | $ | (14 | ) | $ | (41 | ) | ||||
Increases (reductions) in income tax expense resulting from: | ||||||||||||
Foreign income taxed at different rates and foreign losses with no tax benefit | (16 | ) | 14 | (6 | ) | |||||||
Taxes on repatriation of dividends | 4 | 4 | 15 | |||||||||
State and local taxes on income, net of U.S. federal income tax benefit | 2 | 2 | 2 | |||||||||
Changes in valuation allowance for tax loss carryforwards and credits | 16 | 5 | 233 | |||||||||
Amortization of tax goodwill | — | — | (6 | ) | ||||||||
Foreign tax holidays | (5 | ) | (3 | ) | — | |||||||
Investment and R&D tax credits | (2 | ) | (5 | ) | (1 | ) | ||||||
Foreign earnings subject to U.S. federal income tax | 5 | 3 | 3 | |||||||||
Adjustment of prior years taxes | 4 | — | (2 | ) | ||||||||
Impact of foreign tax law changes | (1 | ) | 2 | 10 | ||||||||
Tax contingencies | 12 | 6 | 40 | |||||||||
Goodwill impairment | — | — | 40 | |||||||||
Other | 4 | (1 | ) | 2 | ||||||||
Income tax expense | $ | 69 | $ | 13 | $ | 289 | ||||||
106
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(Millions) | |||||||||||
Income tax expense computed at the statutory U.S. federal income tax rate | $ | 120 | $ | 113 | $ | 95 | |||||
Increases (reductions) in income tax expense resulting from: | |||||||||||
Foreign income taxed at different rates | (21 | ) | (21 | ) | (14 | ) | |||||
Taxes on repatriation of dividends | 9 | 8 | 6 | ||||||||
Remeasurement of estimated tax on unremitted earnings | (17 | ) | — | — | |||||||
State and local taxes on income, net of U.S. federal income tax benefit | 6 | 4 | 2 | ||||||||
Changes in valuation allowance for tax loss carryforwards and credits | 27 | (91 | ) | (11 | ) | ||||||
Foreign tax holidays | (5 | ) | (5 | ) | (4 | ) | |||||
Investment and R&D tax credits | (8 | ) | (1 | ) | (4 | ) | |||||
Foreign earnings subject to U.S. federal income tax | 5 | 23 | 6 | ||||||||
Adjustment of prior years taxes | (1 | ) | (5 | ) | — | ||||||
Impact of tax law changes | (3 | ) | (1 | ) | — | ||||||
Tax contingencies | 6 | (6 | ) | 3 | |||||||
Goodwill impairment | — | — | 3 | ||||||||
Other | 4 | 1 | 6 | ||||||||
Income tax expense | $ | 122 | $ | 19 | $ | 88 |
Year Ended December 31, | |||||||
2013 | 2012 | ||||||
(Millions) | |||||||
Deferred tax assets — | |||||||
Tax loss carryforwards: | |||||||
U.S. federal | $ | — | $ | — | |||
State | 23 | 23 | |||||
Foreign | 78 | 63 | |||||
Tax credit benefits | 88 | 51 | |||||
Postretirement benefits other than pensions | 43 | 50 | |||||
Pensions | 36 | 87 | |||||
Bad debts | 1 | 1 | |||||
Sales allowances | 6 | 6 | |||||
Payroll and other accruals | 132 | 119 | |||||
Valuation allowance | (135 | ) | (118 | ) | |||
Total deferred tax assets | 272 | 282 | |||||
Deferred tax liabilities — | |||||||
Tax over book depreciation | 56 | 57 | |||||
Other | 51 | 70 | |||||
Total deferred tax liabilities | 107 | 127 | |||||
Net deferred tax assets | $ | 165 | $ | 155 |
December 31, | ||||||||
2010 | 2009 | |||||||
(Millions) | ||||||||
Deferred tax assets — | ||||||||
Tax loss carryforwards: | ||||||||
U.S. | $ | 157 | $ | 218 | ||||
State | 53 | 61 | ||||||
Foreign | 56 | 55 | ||||||
Investment tax credit benefits | 46 | 44 | ||||||
Postretirement benefits other than pensions | 52 | 54 | ||||||
Pensions | 55 | 69 | ||||||
Bad debts | 3 | 3 | ||||||
Sales allowances | 6 | 5 | ||||||
Payroll and other accruals | 93 | 91 | ||||||
Valuation allowance | (318 | ) | (378 | ) | ||||
Total deferred tax assets | 203 | 222 | ||||||
Deferred tax liabilities — | ||||||||
Tax over book depreciation | 82 | 89 | ||||||
Other | 54 | 70 | ||||||
Total deferred tax liabilities | 136 | 159 | ||||||
Net deferred tax assets | $ | 67 | $ | 63 | ||||
December 31, | ||||||||
2010 | 2009 | |||||||
(Millions) | ||||||||
Balance Sheet: | ||||||||
Current portion — deferred tax asset | $ | 38 | $ | 35 | ||||
Non-current portion — deferred tax asset | 92 | 100 | ||||||
Current portion — deferred tax liability shown in other current liabilities | (7 | ) | (6 | ) | ||||
Non-current portion — deferred tax liability | (56 | ) | (66 | ) | ||||
Net deferred tax assets | $ | 67 | $ | 63 | ||||
Year Ended December 31, | |||||||
2013 | 2012 | ||||||
(Millions) | |||||||
Balance Sheet: | |||||||
Current portion — deferred tax asset | $ | 71 | $ | 72 | |||
Non-current portion — deferred tax asset | 125 | 116 | |||||
Current portion — deferred tax liability shown in other current liabilities | (3 | ) | (6 | ) | |||
Non-current portion — deferred tax liability | (28 | ) | (27 | ) | |||
Net deferred tax assets | $ | 165 | $ | 155 |
107
Future reversals of existing taxable temporary differences; | ||
108
2010 | 2009 | 2008 | ||||||||||
Uncertain tax positions — | ||||||||||||
Balance January 1 | $ | 96 | $ | 83 | $ | 44 | ||||||
Gross increases in tax positions in current period | 23 | 17 | 16 | |||||||||
Gross increases in tax positions in prior period | 4 | 16 | 56 | |||||||||
Gross decreases in tax positions in prior period | (6 | ) | — | (12 | ) | |||||||
Gross decreases — settlements | (2 | ) | (17 | ) | (8 | ) | ||||||
Gross decreases — statute of limitations expired | (4 | ) | (3 | ) | (13 | ) | ||||||
Balance December 31 | $ | 111 | $ | 96 | $ | 83 | ||||||
2013 | 2012 | 2011 | |||||||||
(Millions) | |||||||||||
Uncertain tax positions — | |||||||||||
Balance January 1 | $ | 107 | $ | 119 | $ | 111 | |||||
Gross increases in tax positions in current period | 15 | 13 | 19 | ||||||||
Gross increases in tax positions in prior period | — | 1 | 3 | ||||||||
Gross decreases in tax positions in prior period | (1 | ) | (12 | ) | (10 | ) | |||||
Gross decreases — settlements | — | (5 | ) | — | |||||||
Gross decreases — statute of limitations expired | (6 | ) | (9 | ) | (4 | ) | |||||
Balance December 31 | $ | 115 | $ | 107 | $ | 119 |
Open To Tax | ||||
Year | ||||
United States | 2000 | |||
China | 2003 | |||
Spain | ||||
Canada | 2007 | |||
Brazil | 2008 | |||
Mexico | 2008 | |||
Belgium | 2011 | |||
Germany | ||||
2011 | ||||
United Kingdom | ||||
2012 |
8. | Common Stock |
109
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions) | ||||||||||||
Selling, general and administrative | $ | 3 | $ | 3 | $ | 4 | ||||||
Loss before interest expense, income taxes and noncontrolling interests | (3 | ) | (3 | ) | (4 | ) | ||||||
Net loss | $ | (3 | ) | $ | (3 | ) | $ | (4 | ) | |||
Decrease in basic earnings per share | $ | (0.05 | ) | $ | (0.06 | ) | $ | (0.09 | ) | |||
Decrease in diluted earnings per share | $ | (0.05 | ) | $ | (0.06 | ) | $ | (0.09 | ) |
110
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Stock Options Granted | ||||||||||||
Weighted average grant date fair value, per share | $ | 11.76 | $ | 1.34 | $ | 8.03 | ||||||
Weighted average assumptions used: | ||||||||||||
Expected volatility | 75.4 | % | 82.6 | % | 37.7 | % | ||||||
Expected lives | 4.6 | 4.5 | 4.1 | |||||||||
Risk-free interest rates | 2.2 | % | 1.48 | % | 2.8 | % | ||||||
Dividends yields | 0.0 | % | 0.00 | % | 0.0 | % |
2013 | 2012 | 2011 | |||||||||
Stock Options Granted: | |||||||||||
Weighted average grant date fair value, per share | $ | 19.84 | $ | 17.35 | $ | 26.13 | |||||
Weighted average assumptions used: | |||||||||||
Expected volatility | 66.4 | % | 73.5 | % | 70.1 | % | |||||
Expected lives | 4.9 | 4.7 | 4.8 | ||||||||
Risk-free interest rates | 0.7 | % | 0.8 | % | 1.8 | % | |||||
Dividends yields | — | % | — | % | — | % |
111
Year Ended December 31, 2010 | ||||||||||||||||
Weighted Avg. | ||||||||||||||||
Shares | Weighted Avg. | Remaining | Aggregate | |||||||||||||
Under | Exercise | Life in | Intrinsic | |||||||||||||
Option | Prices | Years | Value | |||||||||||||
(Millions) | ||||||||||||||||
Outstanding Stock Options | ||||||||||||||||
Outstanding, January 1, 2010 | 3,425,457 | $ | 13.21 | 4.6 | $ | 20 | ||||||||||
Granted | 346,774 | 19.48 | ||||||||||||||
Canceled | (15,000 | ) | 10.66 | |||||||||||||
Forfeited | (16,471 | ) | 19.72 | |||||||||||||
Exercised | (55,375 | ) | 6.06 | 1 | ||||||||||||
Outstanding, March 31, 2010 | 3,685,385 | $ | 13.89 | 4.7 | $ | 30 | ||||||||||
Granted | 6,398 | 24.27 | ||||||||||||||
Canceled | — | — | ||||||||||||||
Forfeited | (1,350 | ) | 25.09 | |||||||||||||
Exercised | (32,546 | ) | 11.30 | — | ||||||||||||
Outstanding, June 30, 2010 | 3,657,887 | $ | 13.93 | 4.6 | $ | 37 | ||||||||||
Granted | 4,540 | 22.58 | ||||||||||||||
Canceled | — | — | ||||||||||||||
Forfeited | (13,891 | ) | 6.58 | |||||||||||||
Exercised | (208,108 | ) | 6.56 | 4 | ||||||||||||
Outstanding, September 30, 2010 | 3,440,428 | $ | 14.38 | 4.3 | $ | 39 | ||||||||||
Granted | 127 | 33.34 | ||||||||||||||
Canceled | — | — | ||||||||||||||
Forfeited | (2,965 | ) | 20.33 | |||||||||||||
Exercised | (308,349 | ) | 14.19 | 7 | ||||||||||||
Outstanding, December 31, 2010 | 3,129,241 | $ | 14.43 | 4.3 | $ | 68 | ||||||||||
Vested and Expected to Vest, December 31, 2010 | 3,051,525 | 14.50 | 4.3 | $ | 66 | |||||||||||
Exercisable, December 31, 2010 | 2,242,478 | $ | 15.23 | 4.1 | $ | 47 | ||||||||||
112
Year Ended December 31, 2013 | ||||||||||||
Shares Under Option | Weighted Avg. Exercise Prices | Weighted Avg. Remaining Life in Years | Aggregate Intrinsic Value | |||||||||
(Millions) | ||||||||||||
Outstanding Stock Options: | ||||||||||||
Outstanding, January 1, 2013 | 2,447,475 | $ | 20.14 | 4.1 | $ | 29 | ||||||
Granted | 311,539 | 36.29 | ||||||||||
Canceled | (7,225 | ) | 11.73 | |||||||||
Forfeited | (14,920 | ) | 14.59 | |||||||||
Exercised | (82,622 | ) | 19.96 | 1 | ||||||||
Outstanding, March 31, 2013 | 2,654,247 | $ | 22.12 | 4.3 | $ | 41 | ||||||
Granted | 388 | 38.90 | ||||||||||
Forfeited | (450 | ) | 21.81 | |||||||||
Exercised | (393,442 | ) | 22.53 | 7 | ||||||||
Outstanding, June 30, 2013 | 2,260,743 | $ | 22.06 | 4.7 | $ | 44 | ||||||
Granted | 1,182 | 35.41 | ||||||||||
Forfeited | (283 | ) | 8.68 | |||||||||
Exercised | (147,753 | ) | 15.42 | — | ||||||||
Outstanding, September 30, 2013 | 2,113,889 | $ | 22.52 | 4.6 | $ | 56 | ||||||
Granted | — | — | ||||||||||
Canceled | — | — | ||||||||||
Forfeited | — | — | ||||||||||
Exercised | (130,316 | ) | 16.23 | 5 | ||||||||
Outstanding, December 31, 2013 | 1,983,573 | $ | 22.93 | 4.5 | $ | 62 |
Year Ended | ||||||||
December 31, 2010 | ||||||||
Weighted Avg. | ||||||||
Grant Date | ||||||||
Shares | Fair Value | |||||||
Nonvested Restricted Shares | ||||||||
Nonvested balance at January 1, 2010 | 644,052 | $ | 9.85 | |||||
Granted | 240,555 | 19.48 | ||||||
Vested | (307,981 | ) | 13.82 | |||||
Forfeited | (3,064 | ) | 4.10 | |||||
Nonvested balance at March 31, 2010 | 573,562 | $ | 11.50 | |||||
Granted | 4,099 | 24.27 | ||||||
Vested | (2,913 | ) | 13.54 | |||||
Forfeited | (160 | ) | 1.85 | |||||
Nonvested balance at June 30, 2010 | 574,588 | $ | 11.59 | |||||
Granted | 2,909 | 22.58 | ||||||
Vested | (3,338 | ) | 18.46 | |||||
Forfeited | (436 | ) | 1.85 | |||||
Nonvested balance at September 30, 2010 | 573,723 | $ | 11.61 | |||||
Granted | 81 | 33.34 | ||||||
Vested | (14,094 | ) | 13.39 | |||||
Forfeited | (1,512 | ) | 7.45 | |||||
Nonvested balance at December 31, 2010 | 558,198 | $ | 11.58 | |||||
Year Ended December 31, 2013 | ||||||
Shares | Weighted Avg. Grant Date Fair Value | |||||
Nonvested Restricted Shares | ||||||
Nonvested balance at January 1, 2013 | 348,918 | $ | 31.69 | |||
Granted | 204,731 | 36.28 | ||||
Vested | (154,160 | ) | 29.54 | |||
Forfeited | — | — | ||||
Nonvested balance at March 31, 2013 | 399,489 | $ | 34.88 | |||
Granted | 226 | 38.90 | ||||
Vested | (15,289 | ) | 35.40 | |||
Forfeited | — | — | ||||
Nonvested balance at June 30, 2013 | 384,426 | $ | 34.86 | |||
Granted | 2,223 | 46.91 | ||||
Vested | (16,255 | ) | 35.58 | |||
Forfeited | — | — | ||||
Nonvested balance at September 30, 2013 | 370,394 | $ | 34.90 | |||
Granted | — | — | ||||
Vested | (2,126 | ) | 34.93 | |||
Forfeited | — | — | ||||
Nonvested balance at December 31, 2012 | 368,268 | $ | 34.90 |
97 9. | Preferred Stock |
10. | Pension Plans, Postretirement and Other Employee Benefits |
113
Percentage of Fair Market Value | ||||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | |||||||||||||||
US | Foreign | US | Foreign | |||||||||||||
Equity Securities | 71 | % | 57 | % | 71 | % | 55 | % | ||||||||
Debt Securities | 28 | % | 36 | % | 29 | % | 38 | % | ||||||||
Real Estate | — | 2 | % | — | 2 | % | ||||||||||
Other | 1 | % | 5 | % | — | 5 | % |
Percentage of Fair Market Value | |||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||
US | Foreign | US | Foreign | ||||||||
Equity Securities | 71 | % | 62 | % | 70 | % | 59 | % | |||
Debt Securities | 29 | % | 31 | % | 30 | % | 33 | % | |||
Real Estate | — | 2 | % | — | 2 | % | |||||
Other | — | 5 | % | — | % | 6 | % |
114
Fair Value Level as of December 31, 2010 | ||||||||||||||||||||||||
US | Foreign | |||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
(Millions) | ||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
U.S. large cap | $ | 33 | $ | 96 | $ | — | $ | 25 | $ | 7 | $ | — | ||||||||||||
U.S. mid cap | — | — | — | — | 1 | — | ||||||||||||||||||
U.S. Small Cap | — | 18 | — | — | 1 | — | ||||||||||||||||||
Non-U.S. large cap | — | 18 | — | 36 | 65 | — | ||||||||||||||||||
Non-U.S. mid cap | — | — | — | — | 19 | — | ||||||||||||||||||
Non-U.S. small cap | — | — | — | — | 8 | — | ||||||||||||||||||
Emerging markets | — | 6 | — | 1 | — | — | ||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. treasuries/government bonds | 20 | — | — | — | — | — | ||||||||||||||||||
U.S. corporate bonds | — | 20 | — | — | — | — | ||||||||||||||||||
U.S. mortgage backed securities | — | 24 | — | — | — | — | ||||||||||||||||||
U.S. asset backed securities | — | 1 | — | — | — | — | ||||||||||||||||||
U.S. other fixed income | — | 4 | — | — | — | — | ||||||||||||||||||
Non-U.S. treasuries /government bonds | — | 1 | — | 59 | 5 | — | ||||||||||||||||||
Non-U.S. corporate bonds | — | 1 | — | 15 | 21 | — | ||||||||||||||||||
Non-U.S. other fixed income | — | — | — | — | — | 6 | ||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||
Non-U.S. real estate | — | — | — | — | 5 | — | ||||||||||||||||||
Other: | ||||||||||||||||||||||||
Insurance contracts | — | — | — | — | 7 | — | ||||||||||||||||||
Cash held in bank accounts | — | — | — | 6 | — | — | ||||||||||||||||||
Total | $ | 53 | $ | 189 | $ | — | $ | 142 | $ | 139 | $ | 6 | ||||||||||||
Fair Value Level as of December 31, 2013 | |||||||||||||||||||||||
US | Foreign | ||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||
(Millions) | |||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||
U.S. large cap | $ | 41 | $ | 143 | $ | — | $ | 31 | $ | 21 | $ | — | |||||||||||
U.S. mid cap | — | — | — | 4 | 4 | — | |||||||||||||||||
U.S. Small Cap | — | 27 | — | — | — | — | |||||||||||||||||
Non-U.S. large cap | — | — | — | 57 | 71 | — | |||||||||||||||||
Non-U.S. mid cap | — | 27 | — | 20 | 19 | — | |||||||||||||||||
Non-U.S. small cap | — | — | — | 1 | 7 | — | |||||||||||||||||
Emerging markets | — | 8 | — | — | 4 | — | |||||||||||||||||
Debt securities: | |||||||||||||||||||||||
U.S. corporate bonds | — | 5 | — | — | 4 | — | |||||||||||||||||
U.S. other fixed income | — | 96 | — | — | — | — | |||||||||||||||||
Non-U.S. treasuries/government bonds | — | — | — | 35 | 25 | — | |||||||||||||||||
Non-U.S. corporate bonds | — | — | — | 18 | 18 | — | |||||||||||||||||
Non-U.S. mortgage backed securities | — | — | — | — | 4 | — | |||||||||||||||||
Non-U.S. municipal obligations | — | — | — | 1 | — | — | |||||||||||||||||
Non-U.S. asset backed securities | — | — | — | — | 3 | — | |||||||||||||||||
Non-U.S. other fixed income | — | — | — | 1 | 2 | — | |||||||||||||||||
Real Estate: | |||||||||||||||||||||||
Non-U.S. real estate | — | — | — | 1 | 5 | — | |||||||||||||||||
Other: | |||||||||||||||||||||||
Insurance contracts | — | — | — | — | 9 | 8 | |||||||||||||||||
Cash held in bank accounts | — | — | — | 6 | — | — | |||||||||||||||||
Total | $ | 41 | $ | 306 | $ | — | $ | 175 | $ | 196 | $ | 8 |
Fair Value Level as of December 31, 2009 | ||||||||||||||||||||||||
US | Foreign | |||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
(Millions) | ||||||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
U.S. large cap | $ | 14 | $ | 89 | $ | — | $ | 4 | $ | 24 | $ | — | ||||||||||||
U.S. mid cap | — | 3 | — | — | — | — | ||||||||||||||||||
U.S. Small Cap | — | 16 | — | — | — | — | ||||||||||||||||||
Non-U.S. large cap | — | 15 | — | 35 | 60 | — | ||||||||||||||||||
Non-U.S. mid cap | — | — | — | — | 17 | — | ||||||||||||||||||
Emerging markets | 5 | — | — | — | 6 | — | ||||||||||||||||||
Debt securities: | ||||||||||||||||||||||||
U.S. treasuries/government bonds | 13 | 3 | — | — | — | — | ||||||||||||||||||
U.S. corporate bonds | — | 14 | — | — | — | — | ||||||||||||||||||
U.S. mortgage backed securities | — | 20 | — | — | — | — | ||||||||||||||||||
U.S. asset backed securities | — | 3 | — | — | — | — | ||||||||||||||||||
U.S. other fixed income | — | 4 | — | — | — | — | ||||||||||||||||||
Non-U.S. treasuries /government bonds | — | — | — | 33 | 22 | — | ||||||||||||||||||
Non-U.S. corporate bonds | — | — | — | 7 | 31 | — | ||||||||||||||||||
Non-U.S. municipal obligations | — | — | — | — | 1 | — | ||||||||||||||||||
Non-U.S. other fixed income | — | — | — | — | — | 6 | ||||||||||||||||||
Real Estate: | ||||||||||||||||||||||||
Non-U.S. real estate | — | — | — | — | 5 | — | ||||||||||||||||||
Other: | ||||||||||||||||||||||||
Insurance contracts | — | — | — | — | 7 | — | ||||||||||||||||||
Cash held in bank accounts | — | — | — | 4 | — | — | ||||||||||||||||||
Total | $ | 32 | $ | 167 | $ | — | $ | 83 | $ | 173 | $ | 6 | ||||||||||||
Fair Value Level as of December 31, 2012 | |||||||||||||||||||||||
US | Foreign | ||||||||||||||||||||||
Asset Category | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||
(Millions) | |||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||
U.S. large cap | $ | 29 | $ | 117 | $ | — | $ | 26 | $ | 15 | $ | — | |||||||||||
U.S. mid cap | — | — | — | 2 | 5 | — | |||||||||||||||||
U.S. Small Cap | — | 20 | — | — | — | — | |||||||||||||||||
Non-U.S. large cap | — | — | — | 48 | 63 | — | |||||||||||||||||
Non-U.S. mid cap | — | 20 | — | 13 | 16 | — | |||||||||||||||||
Non-U.S. small cap | — | — | — | 1 | 4 | — | |||||||||||||||||
Emerging markets | — | 7 | — | 2 | 1 | — | |||||||||||||||||
Debt securities: | |||||||||||||||||||||||
U.S. treasuries/government bonds | — | — | — | — | — | — | |||||||||||||||||
U.S. corporate bonds | — | 4 | — | — | — | — | |||||||||||||||||
U.S. mortgage backed securities | — | — | — | — | — | — | |||||||||||||||||
U.S. asset backed securities | — | — | — | — | — | — | |||||||||||||||||
U.S. other fixed income | — | 78 | — | — | — | — | |||||||||||||||||
Non-U.S. treasuries/government bonds | — | — | — | 36 | 24 | — | |||||||||||||||||
Non-U.S. corporate bonds | — | — | — | 18 | 24 | — | |||||||||||||||||
Non-U.S. mortgage backed securities | — | — | — | — | 3 | — | |||||||||||||||||
Non-U.S. municipal obligations | — | — | — | 1 | — | — | |||||||||||||||||
Non-U.S. asset backed securities | — | — | — | — | 3 | — | |||||||||||||||||
Non-U.S. other fixed income | — | — | — | 1 | — | — | |||||||||||||||||
Real Estate: | |||||||||||||||||||||||
Non-U.S. real estate | — | — | — | 1 | 5 | — | |||||||||||||||||
Other: | |||||||||||||||||||||||
Insurance contracts | — | — | — | — | 8 | 8 | |||||||||||||||||
Cash held in bank accounts | — | — | — | 4 | — | — | |||||||||||||||||
Total | $ | 29 | $ | 246 | $ | — | $ | 153 | $ | 171 | $ | 8 |
December 31, | ||||||||||||||||
2010 | December 31, 2009 | |||||||||||||||
Level 3 Assets | Level 3 Assets | |||||||||||||||
US | Foreign | US | Foreign | |||||||||||||
(Millions) | (Millions) | |||||||||||||||
Balance at December 31 of the previous year | $ | — | $ | 6 | $ | — | $ | 4 | ||||||||
Actual return on plan assets: | ||||||||||||||||
Relating to assets still held at the reporting date | — | — | — | 2 | ||||||||||||
Ending Balance at December 31 | $ | — | $ | 6 | $ | — | $ | 6 | ||||||||
116
December 31, 2013 | December 31, 2012 | ||||||||||||||
Level 3 Assets | Level 3 Assets | ||||||||||||||
US | Foreign | US | Foreign | ||||||||||||
(Millions) | (Millions) | ||||||||||||||
Balance at December 31 of the previous year | $ | — | $ | 8 | $ | — | $ | 6 | |||||||
Actual return on plan assets: | |||||||||||||||
Relating to assets still held at the reporting date | — | — | — | 2 | |||||||||||
Ending Balance at December 31 | $ | — | $ | 8 | $ | — | $ | 8 |
Percentage of | ||||||||||||
Asset Category | Fair Value Level | Value | Total Assets | |||||||||
(Millions) | ||||||||||||
2010: | ||||||||||||
Tenneco Stock | 1 | $ | 34 | 14.0 | % | |||||||
2009: | ||||||||||||
Tenneco Stock | 1 | $ | 14 | 7.3 | % |
Asset Category | Fair Value Level | Value | Percentage of Total Assets | ||||||
(Millions) | |||||||||
2013: | |||||||||
Tenneco Stock | 1 | $ | 41 | 5.6 | % | ||||
2012: | |||||||||
Tenneco Stock | 1 | $ | 29 | 4.7 | % |
117
Pension | Postretirement | |||||||||||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||||||||||
US | Foreign | US | Foreign | US | US | |||||||||||||||||||
(Millions) | ||||||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||
Benefit obligation at December 31 of the previous year | $ | 341 | $ | 333 | $ | 334 | $ | 276 | $ | 142 | $ | 143 | ||||||||||||
Currency rate conversion | — | (3 | ) | — | 31 | — | — | |||||||||||||||||
Settlement | — | (2 | ) | — | (1 | ) | — | — | ||||||||||||||||
Service cost | 1 | 4 | 1 | 3 | 1 | 1 | ||||||||||||||||||
Interest cost | 20 | 19 | 20 | 18 | 8 | 8 | ||||||||||||||||||
Plan amendments | — | 1 | — | — | — | — | ||||||||||||||||||
Actuarial (gain)/loss | 22 | 21 | 4 | 17 | (7 | ) | (2 | ) | ||||||||||||||||
Benefits paid | (30 | ) | (15 | ) | (18 | ) | (13 | ) | (9 | ) | (9 | ) | ||||||||||||
Participants’ contributions | — | 3 | — | 2 | — | — | ||||||||||||||||||
Benefit obligation at December 31 | $ | 354 | $ | 361 | $ | 341 | $ | 333 | $ | 135 | $ | 141 | ||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Fair value at December 31 of the previous year | $ | 199 | $ | 262 | $ | 165 | $ | 196 | $ | — | $ | — | ||||||||||||
Currency rate conversion | — | (1 | ) | — | 25 | — | — | |||||||||||||||||
Settlement | — | (2 | ) | — | (1 | ) | — | — | ||||||||||||||||
Actual return on plan assets | 40 | 20 | 43 | 35 | — | — | ||||||||||||||||||
Employer contributions | 33 | 20 | 9 | 18 | 9 | 9 | ||||||||||||||||||
Participants’ contributions | — | 3 | — | 2 | — | — | ||||||||||||||||||
Benefits paid | (30 | ) | (15 | ) | (18 | ) | (13 | ) | (9 | ) | (9 | ) | ||||||||||||
Fair value at December 31 | $ | 242 | $ | 287 | $ | 199 | $ | 262 | $ | — | $ | — | ||||||||||||
Development of net amount recognized: | ||||||||||||||||||||||||
Unfunded status at December 31 | $ | (112 | ) | $ | (74 | ) | $ | (142 | ) | $ | (71 | ) | $ | (135 | ) | $ | (141 | ) | ||||||
Unrecognized cost: | ||||||||||||||||||||||||
Actuarial loss | 165 | 120 | 171 | 104 | 63 | 74 | ||||||||||||||||||
Prior service cost/ (credit) | 2 | 11 | 2 | 11 | (35 | ) | (41 | ) | ||||||||||||||||
Net amount recognized at December 31 | $ | 55 | $ | 57 | $ | 31 | $ | 44 | $ | (107 | ) | $ | (108 | ) | ||||||||||
Amounts recognized in the balance sheets as of December 31 | ||||||||||||||||||||||||
Noncurrent assets | $ | — | $ | 1 | $ | — | $ | 2 | $ | — | $ | — | ||||||||||||
Current liabilities | (3 | ) | (3 | ) | (17 | ) | (2 | ) | (10 | ) | (10 | ) | ||||||||||||
Noncurrent liabilities | (109 | ) | (72 | ) | (125 | ) | (71 | ) | (125 | ) | (131 | ) | ||||||||||||
Net amount recognized | $ | (112 | ) | $ | (74 | ) | $ | (142 | ) | $ | (71 | ) | $ | (135 | ) | $ | (141 | ) | ||||||
118
Pension | Postretirement | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
US | Foreign | US | Foreign | US | US | ||||||||||||||||||
(Millions) | |||||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||
Benefit obligation at December 31 of the previous year | $ | 461 | $ | 431 | $ | 414 | $ | 370 | $ | 131 | $ | 140 | |||||||||||
Currency rate conversion | — | (2 | ) | — | 13 | — | — | ||||||||||||||||
Settlement | — | (1 | ) | — | (4 | ) | — | — | |||||||||||||||
Curtailment | — | (1 | ) | ||||||||||||||||||||
Service cost | 1 | 9 | 1 | 7 | — | — | |||||||||||||||||
Interest cost | 19 | 17 | 20 | 18 | 5 | 6 | |||||||||||||||||
Administrative expenses/taxes paid | — | (2 | ) | — | (1 | ) | — | — | |||||||||||||||
Plan amendments | — | 1 | — | — | — | — | |||||||||||||||||
Actuarial (gain)/loss | (41 | ) | 6 | 44 | 42 | (16 | ) | (6 | ) | ||||||||||||||
Benefits paid | (19 | ) | (18 | ) | (18 | ) | (16 | ) | (8 | ) | (9 | ) | |||||||||||
Participants’ contributions | — | 2 | — | 2 | — | — | |||||||||||||||||
Benefit obligation at December 31 | $ | 421 | $ | 442 | $ | 461 | $ | 431 | $ | 112 | $ | 131 | |||||||||||
Change in plan assets: | |||||||||||||||||||||||
Fair value at December 31 of the previous year | $ | 275 | $ | 332 | $ | 239 | $ | 290 | $ | — | $ | — | |||||||||||
Currency rate conversion | — | (3 | ) | — | 11 | — | — | ||||||||||||||||
Settlement | — | (1 | ) | — | (4 | ) | — | — | |||||||||||||||
Actual return on plan assets | 60 | 43 | 28 | 27 | — | — | |||||||||||||||||
Administrative expenses/taxes paid | — | (2 | ) | — | — | — | — | ||||||||||||||||
Employer contributions | 31 | 26 | 26 | 22 | 8 | 10 | |||||||||||||||||
Prescription drug subsidy received | — | — | — | — | — | (1 | ) | ||||||||||||||||
Participants’ contributions | — | 2 | — | 2 | — | — | |||||||||||||||||
Benefits paid | (19 | ) | (18 | ) | (18 | ) | (16 | ) | (8 | ) | (9 | ) | |||||||||||
Fair value at December 31 | $ | 347 | $ | 379 | $ | 275 | $ | 332 | $ | — | $ | — | |||||||||||
Development of net amount recognized: | |||||||||||||||||||||||
Unfunded status at December 31 | $ | (74 | ) | $ | (62 | ) | $ | (186 | ) | $ | (99 | ) | $ | (112 | ) | $ | (131 | ) | |||||
Unrecognized cost: | |||||||||||||||||||||||
Actuarial loss | 190 | 137 | 278 | 168 | 32 | 52 | |||||||||||||||||
Prior service cost/(credit) | 1 | 7 | 1 | 8 | (16 | ) | (22 | ) | |||||||||||||||
Net amount recognized at December 31 | $ | 117 | $ | 82 | $ | 93 | $ | 77 | $ | (96 | ) | $ | (101 | ) | |||||||||
Amounts recognized in the balance sheets as of December 31 | |||||||||||||||||||||||
Noncurrent assets | — | 11 | — | — | — | — | |||||||||||||||||
Current liabilities | (6 | ) | (2 | ) | (3 | ) | (2 | ) | (8 | ) | (8 | ) | |||||||||||
Noncurrent liabilities | (68 | ) | (71 | ) | (183 | ) | (97 | ) | (104 | ) | (123 | ) | |||||||||||
Net amount recognized | $ | (74 | ) | $ | (62 | ) | $ | (186 | ) | $ | (99 | ) | $ | (112 | ) | $ | (131 | ) |
2010 | 2009 | 2008 | ||||||||||||||||||||||
US | Foreign | US | Foreign | US | Foreign | |||||||||||||||||||
(Millions) | ||||||||||||||||||||||||
Service cost — benefits earned during the year | $ | 1 | $ | 5 | $ | 1 | $ | 4 | $ | 1 | $ | 5 | ||||||||||||
Interest cost | 20 | 19 | 20 | 18 | 20 | 20 | ||||||||||||||||||
Expected return on plan assets | (21 | ) | (19 | ) | (22 | ) | (19 | ) | (23 | ) | (21 | ) | ||||||||||||
Curtailment loss | — | — | 1 | — | — | — | ||||||||||||||||||
Settlement loss | 6 | — | 2 | — | — | 1 | ||||||||||||||||||
Net amortization: | ||||||||||||||||||||||||
Actuarial loss | 3 | 3 | 2 | 2 | 3 | 4 | ||||||||||||||||||
Prior service cost | — | 2 | 1 | 2 | 1 | 1 | ||||||||||||||||||
Net pension costs | $ | 9 | $ | 10 | $ | 5 | $ | 7 | $ | 2 | $ | 10 | ||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
US | Foreign | US | Foreign | US | Foreign | ||||||||||||||||||
(Millions) | |||||||||||||||||||||||
Service cost — benefits earned during the year | $ | 1 | $ | 9 | $ | 1 | $ | 7 | $ | 1 | $ | 6 | |||||||||||
Interest cost | 19 | 17 | 20 | 18 | 20 | 19 | |||||||||||||||||
Expected return on plan assets | (22 | ) | (20 | ) | (22 | ) | (20 | ) | (23 | ) | (20 | ) | |||||||||||
Curtailment loss | — | — | — | — | — | — | |||||||||||||||||
Settlement loss | — | 1 | — | 1 | — | 1 | |||||||||||||||||
Net amortization: | |||||||||||||||||||||||
Actuarial loss | 9 | 10 | 7 | 7 | 4 | 5 | |||||||||||||||||
Prior service cost | — | 1 | — | 2 | — | 2 | |||||||||||||||||
Net pension costs | $ | 7 | $ | 18 | $ | 6 | $ | 15 | $ | 2 | $ | 13 |
2010 | 2009 | |||||||||||||||
US | Foreign | US | Foreign | |||||||||||||
(Millions) | ||||||||||||||||
Net actuarial loss | $ | 165 | $ | 120 | $ | 171 | $ | 104 | ||||||||
Prior service cost | 2 | 11 | 2 | 11 | ||||||||||||
$ | 167 | $ | 131 | $ | 173 | $ | 115 | |||||||||
2013 | 2012 | ||||||||||||||
US | Foreign | �� | US | Foreign | |||||||||||
(Millions) | |||||||||||||||
Net actuarial loss | $ | 190 | $ | 137 | $ | 278 | $ | 168 | |||||||
Prior service cost | 1 | 7 | 1 | 8 | |||||||||||
$ | 191 | $ | 144 | $ | 279 | $ | 176 |
Year Ended December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Before-Tax Amount | Tax Benefit | Net-of-Tax Amount | Before-Tax Amount | Tax Benefit | Net-of-Tax Amount | ||||||||||||||||||
(Millions) | |||||||||||||||||||||||
Defined benefit pension and postretirement plans: | |||||||||||||||||||||||
Change in total actuarial loss | $ | 113 | $ | (41 | ) | $ | 72 | $ | (66 | ) | $ | 22 | $ | (44 | ) | ||||||||
Amortization of prior service cost included in net periodic pension and postretirement cost | (5 | ) | 2 | (3 | ) | (4 | ) | 2 | (2 | ) | |||||||||||||
Amortization of actuarial loss included in net periodic pension and postretirement cost | 23 | (7 | ) | 16 | 20 | (6 | ) | 14 | |||||||||||||||
Other comprehensive income — pension benefits | $ | 131 | $ | (46 | ) | $ | 85 | $ | (50 | ) | $ | 18 | $ | (32 | ) |
2011 | ||||||||
US | Foreign | |||||||
(Millions) | ||||||||
Net actuarial loss | $ | 4 | $ | 5 | ||||
Prior service cost | — | 2 | ||||||
$ | 4 | $ | 7 | |||||
119
2014 | |||||||
US | Foreign | ||||||
(Millions) | |||||||
Net actuarial loss | $ | 7 | $ | 7 | |||
Prior service cost | — | 1 | |||||
$ | 7 | $ | 8 |
December 31, | December 31, | |||||||||||||||
2010 | 2009 | |||||||||||||||
US | Foreign | US | Foreign | |||||||||||||
(Millions) | ||||||||||||||||
Projected Benefit Obligation | $ | 354 | $ | 332 | $ | 341 | $ | 302 | ||||||||
Accumulated Benefit Obligation | 352 | 328 | 339 | 297 | ||||||||||||
Fair Value of Plan Assets | 242 | 257 | 199 | 229 |
December 31, 2013 | December 31, 2012 | ||||||||||||||
US | Foreign | US | Foreign | ||||||||||||
(Millions) | |||||||||||||||
Projected benefit obligation | $ | 421 | $ | 289 | $ | 461 | $ | 400 | |||||||
Accumulated benefit obligation | 421 | 286 | 461 | 389 | |||||||||||
Fair value of plan assets | 347 | 218 | 275 | 301 |
Year | US | Foreign | ||||||
(Millions) | ||||||||
2011 | 18 | 17 | ||||||
2012 | 18 | 15 | ||||||
2013 | 18 | 16 | ||||||
2014 | 20 | 17 | ||||||
2015 | 21 | 17 | ||||||
2016-2019 | 123 | 100 |
Year | US | Foreign | |||||
(Millions) | |||||||
2014 | $ | 24 | $ | 17 | |||
2015 | 21 | 17 | |||||
2016 | 21 | 19 | |||||
2017 | 28 | 18 | |||||
2018 | 22 | 19 | |||||
2019-2022 | 131 | 140 |
2010 | 2009 | |||||||||||||||
US | Foreign | US | Foreign | |||||||||||||
Weighted-average assumptions used to determine benefit obligations | ||||||||||||||||
Discount rate | 5.6 | % | 5.4 | % | 6.1 | % | 6.0 | % | ||||||||
Rate of compensation increase | N/A | 3.5 | % | N/A | 3.5 | % |
2010 | 2009 | 2008 | |||||||||||||||||||||||||||||||||
US | Foreign | US | Foreign | US | Foreign | 2013 | 2012 | ||||||||||||||||||||||||||||
US | Foreign | US | Foreign | ||||||||||||||||||||||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost | |||||||||||||||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations | |||||||||||||||||||||||||||||||||||
Discount rate | 6.1 | % | 6.0 | % | 6.2 | % | 6.3 | % | 6.2 | % | 5.6 | % | 4.8 | % | 4.3 | % | 4.1 | % | 4.2 | % | |||||||||||||||
Expected long-term return on plan assets | 8.3 | % | 6.9 | % | 8.8 | % | 7.3 | % | 8.8 | % | 7.7 | % | |||||||||||||||||||||||
Rate of compensation increase | N/A | 3.5 | % | N/A | 3.1 | % | N/A | 4.4 | % | N/A | 3.3 | % | N/A | 3.4 | % |
2013 | 2012 | 2011 | |||||||||||||||
US | Foreign | US | Foreign | US | Foreign | ||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost | |||||||||||||||||
Discount rate | 4.1 | % | 4.2 | % | 4.8 | % | 4.9 | % | 5.6 | % | 5.4 | % | |||||
Expected long-term return on plan assets | 7.8 | % | 6.2 | % | 8.3 | % | 6.3 | % | 8.3 | % | 6.4 | % | |||||
Rate of compensation increase | N/A | 3.4 | % | N/A | 3.5 | % | N/A | 3.5 | % |
120
2010 | 2009 | 2008 | ||||||||||
(Millions) | ||||||||||||
Service cost — benefits earned during the year | $ | 1 | $ | 1 | $ | 2 | ||||||
Interest on accumulated postretirement benefit obligation | 8 | 8 | 8 | |||||||||
Net amortization: | ||||||||||||
Actuarial loss | 4 | 5 | 5 | |||||||||
Prior service credit | (6 | ) | (6 | ) | (5 | ) | ||||||
Net periodic postretirement benefit cost | $ | 7 | $ | 8 | $ | 10 | ||||||
2013 | 2012 | 2011 | |||||||||
(Millions) | |||||||||||
Service cost — benefits earned during the year | $ | — | $ | 1 | $ | 1 | |||||
Interest on accumulated postretirement benefit obligation | 5 | 6 | 7 | ||||||||
Net amortization: | |||||||||||
Actuarial loss | 4 | 5 | 4 | ||||||||
Prior service credit | (6 | ) | (6 | ) | (6 | ) | |||||
Net periodic postretirement benefit cost | $ | 3 | $ | 6 | $ | 6 |
2011 | ||||
Net actuarial loss | $ | 4 | ||
Prior service credit | (6 | ) | ||
$ | (2 | ) | ||
2014 | |||
(Millions) | |||
Net actuarial loss | $ | 2 | |
Prior service credit | (6 | ) | |
$ | (4 | ) |
Postretirement | ||||
Year | Benefits | |||
(Millions) | ||||
2011 | 10 | |||
2012 | 10 | |||
2013 | 10 | |||
2014 | 10 | |||
2015 | 10 | |||
2016-2019 | 49 |
121
Year | Postretirement Benefits | ||
(Millions) | |||
2014 | $ | 8 | |
2015 | 8 | ||
2016 | 8 | ||
2017 | 8 | ||
2018 | 8 | ||
2019-2022 | 38 |
Postretirement | ||||
Year | Benefits | |||
(Millions) | ||||
2011 | 1 | |||
2012 | 1 | |||
2013 | 1 | |||
2014 | 1 | |||
2015 | 1 | |||
2016-2019 | 3 |
2010 | 2009 | |||||||
Weighted-average assumptions used to determine benefit obligations | ||||||||
Discount rate | 5.6 | % | 6.1 | % | ||||
Rate of compensation increase | N/A | N/A |
2013 | 2012 | ||||
Weighted-average assumptions used to determine benefit obligations | |||||
Discount rate | 4.8 | % | 4.1 | % | |
Rate of compensation increase | N/A | N/A |
2010 | 2009 | 2008 | ||||||||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||||||||||
Discount rate | 6.1 | % | 6.2 | % | 6.2 | % | ||||||
Rate of compensation increase | N/A | 4.0 | % | 4.0 | % |
2013 | 2012 | 2011 | ||||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||||||
Discount rate | 4.1 | % | 4.8 | % | 5.6 | % | ||
Rate of compensation increase | N/A | N/A | N/A |
One-Percentage | One-Percentage | |||||||
Point Increase | Point Decrease | |||||||
(Millions) | ||||||||
Effect on total of service cost and interest cost | $ | 1 | $ | — | ||||
Effect on postretirement benefit obligation | 10 | (9 | ) |
122
123
Clean Air Division | Ride Performance Division | ||||||||||||||||||||||||||||||||||
North America | Europe, South America & India | Asia Pacific | North America | Europe, South America & India | Asia Pacific | Other | Reclass & Elims | Total | |||||||||||||||||||||||||||
(Millions) | |||||||||||||||||||||||||||||||||||
At December 31, 2013, and for the Year Ended | |||||||||||||||||||||||||||||||||||
Revenues from external customers | $ | 2,659 | $ | 1,933 | $ | 852 | $ | 1,255 | $ | 1,046 | $ | 219 | $ | — | $ | — | $ | 7,964 | |||||||||||||||||
Intersegment revenues | 7 | 112 | 1 | 10 | 41 | 32 | — | (203 | ) | — | |||||||||||||||||||||||||
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 229 | 57 | 84 | 124 | (7 | ) | 22 | (85 | ) | — | 424 | ||||||||||||||||||||||||
Total assets | 1,030 | 827 | 544 | 628 | 552 | 213 | — | 36 | 3,830 | ||||||||||||||||||||||||||
At December 31, 2012, and for the Year Ended | |||||||||||||||||||||||||||||||||||
Revenues from external customers | 2,506 | 1,726 | 694 | 1,213 | 1,041 | 183 | — | — | 7,363 | ||||||||||||||||||||||||||
Intersegment revenues | 6 | 101 | 1 | 10 | 53 | 30 | — | (201 | ) | — | |||||||||||||||||||||||||
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 202 | 54 | 71 | 122 | 41 | 5 | (67 | ) | — | 428 | |||||||||||||||||||||||||
Total assets | 1,029 | 725 | 435 | 593 | 600 | 202 | — | 24 | 3,608 | ||||||||||||||||||||||||||
At December 31, 2011, and for the Year Ended | |||||||||||||||||||||||||||||||||||
Revenues from external customers | $ | 2,288 | $ | 1,849 | $ | 624 | $ | 1,126 | $ | 1,164 | $ | 154 | $ | — | $ | — | $ | 7,205 | |||||||||||||||||
Intersegment revenues | 3 | 104 | — | 9 | 52 | 26 | — | (194 | ) | — | |||||||||||||||||||||||||
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests | 172 | 79 | 47 | 76 | 69 | (6 | ) | (58 | ) | — | 379 | ||||||||||||||||||||||||
Total assets | 889 | 719 | 386 | 530 | 607 | 181 | — | 25 | 3,337 |
Segment | ||||||||||||||||||||
North | Asia | Reclass & | ||||||||||||||||||
America | Europe | Pacific | Elims | Consolidated | ||||||||||||||||
(Millions) | ||||||||||||||||||||
At December 31, 2010, and for the Year Then Ended | ||||||||||||||||||||
Revenues from external customers | $ | 2,821 | $ | 2,446 | $ | 670 | $ | — | $ | 5,937 | ||||||||||
Intersegment revenues | 11 | 148 | 28 | (187 | ) | — | ||||||||||||||
Interest income | — | 3 | 1 | — | 4 | |||||||||||||||
Depreciation and amortization of intangibles | 109 | 86 | 21 | — | 216 | |||||||||||||||
Income before interest expense, income taxes, and noncontrolling interests | 155 | 76 | 50 | — | 281 | |||||||||||||||
Total assets | 1,281 | 1,337 | 525 | 24 | 3,167 | |||||||||||||||
Equity in net assets of unconsolidated affiliates | — | 9 | — | — | 9 | |||||||||||||||
Expenditures for plant, property and equipment | 59 | 66 | 29 | — | 154 | |||||||||||||||
Noncash items other than depreciation and amortization | 4 | 6 | — | — | 10 | |||||||||||||||
At December 31, 2009, and for the Year Then Ended | ||||||||||||||||||||
Revenues from external customers | $ | 2,092 | $ | 2,047 | $ | 510 | $ | — | $ | 4,649 | ||||||||||
Intersegment revenues | 7 | 162 | 15 | (184 | ) | — | ||||||||||||||
Interest income | — | 3 | 1 | — | 4 | |||||||||||||||
Depreciation and amortization of intangibles | 113 | 89 | 19 | — | 221 | |||||||||||||||
Income before interest expense, income taxes, and noncontrolling interests | 42 | 20 | 30 | — | 92 | |||||||||||||||
Total assets | 1,102 | 1,338 | 391 | 10 | 2,841 | |||||||||||||||
Equity in net assets of unconsolidated affiliates | — | 12 | — | — | 12 | |||||||||||||||
Expenditures for plant, property and equipment | 45 | 58 | 15 | — | 118 | |||||||||||||||
Noncash items other than depreciation and amortization | 8 | (1 | ) | 1 | — | 8 | ||||||||||||||
At December 31, 2008, and for the Year Then Ended | ||||||||||||||||||||
Revenues from external customers | $ | 2,630 | $ | 2,758 | $ | 528 | $ | — | $ | 5,916 | ||||||||||
Intersegment revenues | 11 | 225 | 15 | (251 | ) | — | ||||||||||||||
Interest income | — | 10 | 1 | — | 11 | |||||||||||||||
Depreciation and amortization of intangibles | 108 | 97 | 17 | — | 222 | |||||||||||||||
Income before interest expense, income taxes, and noncontrolling interests | (107 | ) | 85 | 19 | — | (3 | ) | |||||||||||||
Total assets | 1,120 | 1,352 | 322 | 34 | 2,828 | |||||||||||||||
Equity in net assets of unconsolidated affiliates | — | 14 | — | — | 14 | |||||||||||||||
Expenditures for plant, property and equipment | 108 | 89 | 24 | — | 221 | |||||||||||||||
Noncash items other than depreciation and amortization | (122 | ) | (11 | ) | — | — | (133 | ) |
124
Net Sales | ||||||||||||
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions) | ||||||||||||
Emission Control Systems & Products | ||||||||||||
Aftermarket | $ | 318 | $ | 315 | $ | 358 | ||||||
Original Equipment | ||||||||||||
OE Value-add | 2,223 | 1,638 | 2,128 | |||||||||
OE Substrate | 1,284 | 966 | 1,492 | |||||||||
3,507 | 2,604 | 3,620 | ||||||||||
3,825 | 2,919 | 3,978 | ||||||||||
Ride Control Systems & Products | ||||||||||||
Aftermarket | 851 | 721 | 761 | |||||||||
Original Equipment | 1,261 | 1,009 | 1,177 | |||||||||
2,112 | 1,730 | 1,938 | ||||||||||
Total Revenues | $ | 5,937 | $ | 4,649 | $ | 5,916 | ||||||
Net Sales Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(Millions) | |||||||||||
Clean Air Systems & Products | |||||||||||
Aftermarket | $ | 327 | $ | 318 | $ | 351 | |||||
Original Equipment | |||||||||||
OE Value-add | 3,282 | 2,948 | 2,732 | ||||||||
OE Substrate | 1,835 | 1,660 | 1,678 | ||||||||
5,117 | 4,608 | 4,410 | |||||||||
5,444 | 4,926 | 4,761 | |||||||||
Ride Performance Systems & Products | |||||||||||
Aftermarket | 953 | 944 | 944 | ||||||||
Original Equipment | 1,567 | 1,493 | 1,500 | ||||||||
2,520 | 2,437 | 2,444 | |||||||||
Total Revenues | $ | 7,964 | $ | 7,363 | $ | 7,205 | |||||
Customer | 2010 | 2009 | 2008 | |||||||||
General Motors | 19 | % | 16 | % | 20 | % | ||||||
Ford | 13 | % | 14 | % | 11 | % |
Customer | 2013 | 2012 | 2011 | |||||
General Motors | 15 | % | 17 | % | 19 | % | ||
Ford | 14 | % | 15 | % | 15 | % |
�� | ||||||||||||||||||||||||||||
Geographic Area | ||||||||||||||||||||||||||||
United | Other | Reclass & | ||||||||||||||||||||||||||
States | Germany | Canada | China | Foreign(a) | Elims | Consolidated | ||||||||||||||||||||||
(Millions) | ||||||||||||||||||||||||||||
At December 31, 2010, and for the Year Then Ended | ||||||||||||||||||||||||||||
Revenues from external customers(b) | $ | 2,275 | $ | 616 | $ | 327 | $ | 473 | $ | 2,246 | $ | — | $ | 5,937 | ||||||||||||||
Long-lived assets(c) | 352 | 109 | 64 | 76 | 564 | — | 1,165 | |||||||||||||||||||||
Total assets | 1,147 | 322 | 149 | 321 | 1,308 | (80 | ) | 3,167 | ||||||||||||||||||||
At December 31, 2009, and for the Year Then Ended | ||||||||||||||||||||||||||||
Revenues from external customers(b) | $ | 1,531 | $ | 559 | $ | 416 | $ | 361 | $ | 1,782 | $ | — | $ | 4,649 | ||||||||||||||
Long-lived assets(c) | 373 | 116 | 75 | 61 | 604 | — | 1,229 | |||||||||||||||||||||
Total assets | 984 | 409 | 125 | 249 | 1,153 | (79 | ) | 2,841 | ||||||||||||||||||||
At December 31, 2008, and for the Year Then Ended | ||||||||||||||||||||||||||||
Revenues from external customers(b) | $ | 1,954 | $ | 898 | $ | 483 | $ | 309 | $ | 2,272 | $ | — | $ | 5,916 | ||||||||||||||
Long-lived assets(c) | 421 | 130 | 74 | 57 | 599 | — | 1,281 | |||||||||||||||||||||
Total assets | 1,066 | 429 | 112 | 186 | 1,149 | (114 | ) | 2,828 |
Geographic Area | |||||||||||||||||||||||||||
United States | Germany | Canada | China | Other Foreign(a) | Reclass & Elims | Consolidated | |||||||||||||||||||||
(Millions) | |||||||||||||||||||||||||||
At December 31, 2013, and for the Year Then Ended | |||||||||||||||||||||||||||
Revenues from external customers(b) | $ | 3,144 | $ | 941 | $ | 387 | $ | 875 | $ | 2,617 | $ | — | $ | 7,964 | |||||||||||||
Long-lived assets(c) | 448 | 120 | 59 | 158 | 531 | — | 1,316 | ||||||||||||||||||||
Total assets | 1,552 | 358 | 182 | 602 | 1,326 | (190 | ) | 3,830 | |||||||||||||||||||
At December 31, 2012, and for the Year Then Ended | |||||||||||||||||||||||||||
Revenues from external customers(b) | $ | 2,975 | $ | 817 | $ | 389 | $ | 661 | $ | 2,521 | $ | — | $ | 7,363 | |||||||||||||
Long-lived assets(c) | 429 | 115 | 57 | 139 | 521 | — | 1,261 | ||||||||||||||||||||
Total assets | 1,521 | 344 | 168 | 448 | 1,307 | (180 | ) | 3,608 | |||||||||||||||||||
At December 31, 2011, and for the Year Then Ended | |||||||||||||||||||||||||||
Revenues from external customers(b) | $ | 2,795 | $ | 826 | $ | 343 | $ | 567 | $ | 2,674 | $ | — | $ | 7,205 | |||||||||||||
Long-lived assets(c) | 359 | 110 | 57 | 104 | 530 | — | 1,160 | ||||||||||||||||||||
Total assets | 1,280 | 347 | 163 | 387 | 1,251 | (91 | ) | 3,337 |
(b) | Revenues are attributed to countries based on location of the shipper. |
(c) | Long-lived assets include all long-term assets except goodwill, intangibles and deferred tax assets. |
Subsequent | ||||||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | Years | |||||||||||||||||||
(Millions) | ||||||||||||||||||||||||
Operating Leases | $ | 26 | $ | 19 | $ | 13 | $ | 8 | $ | 5 | $ | 17 | ||||||||||||
Capital Leases | 1 | — | — | — | — | — |
126
Year Ended | ||||||||||||
December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
(Millions) | ||||||||||||
Beginning Balance | $ | 32 | $ | 27 | $ | 25 | ||||||
Accruals related to product warranties | 19 | 18 | 17 | |||||||||
Reductions for payments made | (18 | ) | (13 | ) | (15 | ) | ||||||
Ending Balance | $ | 33 | $ | 32 | $ | 27 | ||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(Millions) | |||||||||||
Beginning Balance | $ | 23 | $ | 26 | $ | 33 | |||||
Accruals related to product warranties | 20 | 15 | 11 | ||||||||
Reductions for payments made | (19 | ) | (18 | ) | (18 | ) | |||||
Ending Balance | $ | 24 | $ | 23 | $ | 26 |
127
128
For the Year Ended December 31, 2013 | |||||||||||||||||||
Guarantor Subsidiaries | Nonguarantor Subsidiaries | Tenneco Inc. (Parent Company) | Reclass & Elims | Consolidated | |||||||||||||||
(Millions) | |||||||||||||||||||
Revenues | |||||||||||||||||||
Net sales and operating revenues — | |||||||||||||||||||
External | $ | 3,498 | $ | 4,466 | $ | — | $ | — | $ | 7,964 | |||||||||
Affiliated companies | 350 | 572 | — | (922 | ) | — | |||||||||||||
3,848 | 5,038 | — | (922 | ) | 7,964 | ||||||||||||||
Costs and expenses | |||||||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 3,103 | 4,553 | — | (922 | ) | 6,734 | |||||||||||||
Goodwill impairment charge | — | — | — | — | — | ||||||||||||||
Engineering, research, and development | 66 | 78 | — | — | 144 | ||||||||||||||
Selling, general, and administrative | 187 | 260 | 6 | — | 453 | ||||||||||||||
Depreciation and amortization of other intangibles | 78 | 127 | — | — | 205 | ||||||||||||||
3,434 | 5,018 | 6 | (922 | ) | 7,536 | ||||||||||||||
Other income (expense) | |||||||||||||||||||
Loss on sale of receivables | — | (4 | ) | — | — | (4 | ) | ||||||||||||
Other income (expense) | (1 | ) | 59 | — | (58 | ) | — | ||||||||||||
(1 | ) | 55 | — | (58 | ) | (4 | ) | ||||||||||||
Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income from affiliated companies | 413 | 75 | (6 | ) | (58 | ) | 424 | ||||||||||||
Interest expense — | |||||||||||||||||||
External (net of interest capitalized) | (2 | ) | 5 | 77 | — | 80 | |||||||||||||
Affiliated companies (net of interest income) | 70 | (72 | ) | 2 | — | — | |||||||||||||
Earnings (loss) before income taxes, noncontrolling interests and equity in net income from affiliated companies | 345 | 142 | (85 | ) | (58 | ) | 344 | ||||||||||||
Income tax expense | 60 | 62 | — | — | 122 | ||||||||||||||
Equity in net income (loss) from affiliated companies | 32 | — | 268 | (300 | ) | — | |||||||||||||
Net income (loss) | 317 | 80 | 183 | (358 | ) | 222 | |||||||||||||
Less: Net income attributable to noncontrolling interests | — | 39 | — | — | 39 | ||||||||||||||
Net income (loss) attributable to Tenneco Inc. | $ | 317 | $ | 41 | $ | 183 | $ | (358 | ) | $ | 183 | ||||||||
Comprehensive income (loss) attributable to Tenneco Inc. | $ | 390 | $ | 16 | $ | 183 | $ | (358 | ) | $ | 231 |
For the Year Ended December 31, 2012 | |||||||||||||||||||
Guarantor Subsidiaries | Nonguarantor Subsidiaries | Tenneco Inc. (Parent Company) | Reclass & Elims | Consolidated | |||||||||||||||
(Millions) | |||||||||||||||||||
Revenues | |||||||||||||||||||
Net sales and operating revenues — | |||||||||||||||||||
External | $ | 3,331 | $ | 4,032 | $ | — | $ | — | $ | 7,363 | |||||||||
Affiliated companies | 182 | 547 | — | (729 | ) | — | |||||||||||||
3,513 | 4,579 | — | — | 7,363 | |||||||||||||||
Costs and expenses | |||||||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 3,056 | 3,843 | — | (729 | ) | 6,170 | |||||||||||||
Goodwill impairment charge | — | — | — | — | — | ||||||||||||||
Engineering, research, and development | 57 | 69 | — | — | 126 | ||||||||||||||
Selling, general, and administrative | 198 | 224 | 5 | — | 427 | ||||||||||||||
Depreciation and amortization of other intangibles | 72 | 133 | — | — | 205 | ||||||||||||||
3,383 | 4,269 | 5 | (729 | ) | 6,928 | ||||||||||||||
Other income (expense) | |||||||||||||||||||
Loss on sale of receivables | — | (4 | ) | — | — | (4 | ) | ||||||||||||
Other income (expense) | 115 | (71 | ) | — | (47 | ) | (3 | ) | |||||||||||
115 | (75 | ) | — | (47 | ) | (7 | ) | ||||||||||||
Earnings (loss) before interest expense, income taxes, noncontrolling interests and equity in net income from affiliated companies | 245 | 235 | (5 | ) | (47 | ) | 428 | ||||||||||||
Interest expense — | |||||||||||||||||||
External (net of interest capitalized) | — | 5 | 100 | — | 105 | ||||||||||||||
Affiliated companies (net of interest income) | 212 | (81 | ) | (131 | ) | — | — | ||||||||||||
Earnings (loss) before income taxes, noncontrolling interests and equity in net income from affiliated companies | 33 | 311 | 26 | (47 | ) | 323 | |||||||||||||
Income tax expense | (39 | ) | 58 | — | — | 19 | |||||||||||||
Equity in net income (loss) from affiliated companies | 217 | — | 249 | (466 | ) | — | |||||||||||||
Net income (loss) | 289 | 253 | 275 | (513 | ) | 304 | |||||||||||||
Less: Net income attributable to noncontrolling interests | — | 29 | — | — | 29 | ||||||||||||||
Net income (loss) attributable to Tenneco Inc. | $ | 289 | $ | 224 | $ | 275 | $ | (513 | ) | $ | 275 | ||||||||
Comprehensive income (loss) attributable to Tenneco Inc. | $ | 277 | $ | 210 | $ | 275 | $ | (513 | ) | $ | 249 |
For the Year Ended December 31, 2010 | ||||||||||||||||||||
Tenneco Inc. | ||||||||||||||||||||
Guarantor | Nonguarantor | (Parent | Reclass | |||||||||||||||||
Subsidiaries | Subsidiaries | Company) | & 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 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 | ) | — | — | |||||||||||||
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 | |||||||||
129
For the Year Ended December 31, 2009 | ||||||||||||||||||||
Tenneco Inc. | ||||||||||||||||||||
Guarantor | Nonguarantor | (Parent | Reclass | |||||||||||||||||
Subsidiaries | Subsidiaries | Company) | & 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 | ) | — | — | |||||||||||||
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 | ) | ||||||
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 | 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 | ||||||||
Comprehensive income (loss) attributable to Tenneco Inc. | $ | 105 | $ | 81 | $ | 157 | $ | (326 | ) | $ | 17 |
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 | ||||||||||||||
Pension Assets | — | — | — | — | — | ||||||||||||||
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 | ) | — | |||||||||||||
Accounts payable | 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 |
For the Year Ended December 31, 2008 | ||||||||||||||||||||
Tenneco Inc. | ||||||||||||||||||||
Guarantor | Nonguarantor | (Parent | Reclass | |||||||||||||||||
Subsidiaries | Subsidiaries | Company) | & Elims | Consolidated | ||||||||||||||||
(Millions) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Net sales and operating revenues — | ||||||||||||||||||||
External | $ | 2,392 | $ | 3,524 | $ | — | $ | — | $ | 5,916 | ||||||||||
Affiliated companies | 66 | 476 | — | (542 | ) | — | ||||||||||||||
2,458 | 4,000 | — | (542 | ) | 5,916 | |||||||||||||||
Costs and expenses | ||||||||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 2,058 | 3,547 | — | (542 | ) | 5,063 | ||||||||||||||
Goodwill impairment charge | 114 | — | — | — | 114 | |||||||||||||||
Engineering, research, and development | 52 | 75 | — | — | 127 | |||||||||||||||
Selling, general, and administrative | 124 | 264 | 4 | — | 392 | |||||||||||||||
Depreciation and amortization of other intangibles | 86 | 136 | — | — | 222 | |||||||||||||||
2,434 | 4,022 | 4 | (542 | ) | 5,918 | |||||||||||||||
Other income (expense) | ||||||||||||||||||||
Loss on sale of receivables | — | (10 | ) | — | — | (10 | ) | |||||||||||||
Other income (expense) | 63 | (1 | ) | (1 | ) | (52 | ) | 9 | ||||||||||||
63 | (11 | ) | (1 | ) | (52 | ) | (1 | ) | ||||||||||||
Earnings (loss) before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies | 87 | (33 | ) | (5 | ) | (52 | ) | (3 | ) | |||||||||||
Interest expense — | ||||||||||||||||||||
External (net of interest capitalized) | (3 | ) | 3 | 113 | — | 113 | ||||||||||||||
Affiliated companies (net of interest income) | 124 | (10 | ) | (114 | ) | — | — | |||||||||||||
Income tax expense (benefit) | 20 | 89 | 185 | (5 | ) | 289 | ||||||||||||||
Equity in net income (loss) from affiliated companies | (138 | ) | — | (226 | ) | 364 | — | |||||||||||||
Net income (loss) | (192 | ) | (115 | ) | (415 | ) | 317 | (405 | ) | |||||||||||
Less: Net income attributable to noncontrolling interests | — | 10 | — | — | 10 | |||||||||||||||
Net income (loss) attributable to Tenneco Inc. | $ | (192 | ) | $ | (125 | ) | $ | (415 | ) | $ | 317 | $ | (415 | ) | ||||||
131
December 31, 2012 | |||||||||||||||||||
Guarantor Subsidiaries | Nonguarantor Subsidiaries | Tenneco Inc. (Parent Company) | Reclass & Elims | Consolidated | |||||||||||||||
(Millions) | |||||||||||||||||||
ASSETS | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 4 | $ | 219 | $ | — | $ | — | $ | 223 | |||||||||
Receivables, net | 341 | 1,268 | 30 | (653 | ) | 986 | |||||||||||||
Inventories | 278 | 389 | — | — | 667 | ||||||||||||||
Deferred income taxes | 91 | — | 6 | (25 | ) | 72 | |||||||||||||
Prepayments and other | 28 | 148 | — | — | 176 | ||||||||||||||
Total current assets | 742 | 2,024 | 36 | (678 | ) | 2,124 | |||||||||||||
Other assets: | |||||||||||||||||||
Investment in affiliated companies | 551 | — | 717 | (1,268 | ) | — | |||||||||||||
Notes and advances receivable from affiliates | 957 | 4,495 | 4,594 | (10,046 | ) | — | |||||||||||||
Long-term receivables, net | 2 | 2 | — | — | 4 | ||||||||||||||
Goodwill | 21 | 51 | — | — | 72 | ||||||||||||||
Intangibles, net | 18 | 17 | — | — | 35 | ||||||||||||||
Deferred income taxes | 55 | 1 | 60 | — | 116 | ||||||||||||||
Other | 31 | 75 | 29 | — | 135 | ||||||||||||||
1,635 | 4,641 | 5,400 | (11,314 | ) | 362 | ||||||||||||||
Plant, property, and equipment, at cost | 1,098 | 2,267 | — | — | 3,365 | ||||||||||||||
Less — Accumulated depreciation and amortization | (763 | ) | (1,480 | ) | — | — | (2,243 | ) | |||||||||||
335 | 787 | — | — | 1,122 | |||||||||||||||
Total assets | $ | 2,712 | $ | 7,452 | $ | 5,436 | $ | (11,992 | ) | $ | 3,608 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Short-term debt (including current maturities of long-term debt) | |||||||||||||||||||
Short-term debt — non-affiliated | $ | — | $ | 112 | $ | 1 | $ | — | $ | 113 | |||||||||
Short-term debt — affiliated | 250 | 173 | 10 | (433 | ) | — | |||||||||||||
Accounts payable | 423 | 954 | — | (191 | ) | 1,186 | |||||||||||||
Accrued taxes | 16 | 34 | — | — | 50 | ||||||||||||||
Other | 135 | 210 | 9 | (54 | ) | 300 | |||||||||||||
Total current liabilities | 824 | 1,483 | 20 | (678 | ) | 1,649 | |||||||||||||
Long-term debt — non-affiliated | — | 8 | 1,059 | — | 1,067 | ||||||||||||||
Long-term debt — affiliated | 1,447 | 4,533 | 4,066 | (10,046 | ) | — | |||||||||||||
Deferred income taxes | — | 27 | — | — | 27 | ||||||||||||||
Postretirement benefits and other liabilities | 438 | 118 | — | 3 | 559 | ||||||||||||||
Commitments and contingencies | |||||||||||||||||||
Total liabilities | 2,709 | 6,169 | 5,145 | (10,721 | ) | 3,302 | |||||||||||||
Redeemable noncontrolling interests | — | 15 | — | — | 15 | ||||||||||||||
Tenneco Inc. Shareholders’ equity | 3 | 1,223 | 291 | (1,271 | ) | 246 | |||||||||||||
Noncontrolling interests | — | 45 | — | — | 45 | ||||||||||||||
Total equity | 3 | 1,268 | 291 | (1,271 | ) | 291 | |||||||||||||
Total liabilities, redeemable noncontrolling interests and equity | $ | 2,712 | $ | 7,452 | $ | 5,436 | $ | (11,992 | ) | $ | 3,608 |
December 31, 2010 | ||||||||||||||||||||
Tenneco Inc. | ||||||||||||||||||||
Guarantor | Nonguarantor | (Parent | Reclass | |||||||||||||||||
Subsidiaries | Subsidiaries | Company) | & 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 | |||||||||
132
December 31, 2009 | ||||||||||||||||||||
Tenneco Inc. | ||||||||||||||||||||
Guarantor | Nonguarantor | (Parent | Reclass | |||||||||||||||||
Subsidiaries | Subsidiaries | Company) | & Elims | Consolidated | ||||||||||||||||
(Millions) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 20 | $ | 147 | $ | — | $ | — | $ | 167 | ||||||||||
Receivables, net | 289 | 936 | 39 | (668 | ) | 596 | ||||||||||||||
Inventories | 161 | 267 | — | — | 428 | |||||||||||||||
Deferred income taxes | — | 69 | — | (34 | ) | 35 | ||||||||||||||
Prepayments and other | 43 | 124 | — | — | 167 | |||||||||||||||
Total current assets | 513 | 1,543 | 39 | (702 | ) | 1,393 | ||||||||||||||
Other assets: | ||||||||||||||||||||
Investment in affiliated companies | 591 | — | 632 | (1,223 | ) | — | ||||||||||||||
Notes and advances receivable from affiliates | 3,872 | 308 | 5,818 | (9,998 | ) | — | ||||||||||||||
Long-term receivables, net | 3 | 5 | — | — | 8 | |||||||||||||||
Goodwill | 22 | 67 | — | — | 89 | |||||||||||||||
Intangibles, net | 16 | 14 | — | — | 30 | |||||||||||||||
Deferred income taxes | 75 | 25 | 15 | (15 | ) | 100 | ||||||||||||||
Other | 28 | 58 | 25 | — | 111 | |||||||||||||||
4,607 | 477 | 6,490 | (11,236 | ) | 338 | |||||||||||||||
Plant, property, and equipment, at cost | 1,005 | 2,094 | — | — | 3,099 | |||||||||||||||
Less — Accumulated depreciation and amortization | (696 | ) | (1,293 | ) | — | — | (1,989 | ) | ||||||||||||
309 | 801 | — | — | 1,110 | ||||||||||||||||
Total assets | $ | 5,429 | $ | 2,821 | $ | 6,529 | $ | (11,938 | ) | $ | 2,841 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Short-term debt (including current maturities of long-term debt) | ||||||||||||||||||||
Short-term debt — non-affiliated | $ | — | $ | 74 | $ | 1 | $ | — | $ | 75 | ||||||||||
Short-term debt — affiliated | 302 | 229 | 10 | (541 | ) | — | ||||||||||||||
Trade payables | 270 | 609 | — | (113 | ) | 766 | ||||||||||||||
Accrued taxes | 6 | 30 | — | — | 36 | |||||||||||||||
Other | 167 | 166 | 39 | (48 | ) | 324 | ||||||||||||||
Total current liabilities | 745 | 1,108 | 50 | (702 | ) | 1,201 | ||||||||||||||
Long-term debt — non-affiliated | — | 8 | 1,137 | — | 1,145 | |||||||||||||||
Long-term debt — affiliated | 4,374 | 261 | 5,363 | (9,998 | ) | — | ||||||||||||||
Deferred income taxes | 15 | 66 | — | (15 | ) | 66 | ||||||||||||||
Postretirement benefits and other liabilities | 326 | 81 | — | 4 | 411 | |||||||||||||||
Commitments and contingencies | ||||||||||||||||||||
Total liabilities | 5,460 | 1,524 | 6,550 | (10,711 | ) | 2,823 | ||||||||||||||
Redeemable noncontrolling interests | — | 7 | — | — | 7 | |||||||||||||||
Tenneco Inc. Shareholders’ equity | (31 | ) | 1,258 | (21 | ) | (1,227 | ) | (21 | ) | |||||||||||
Noncontrolling interests | — | 32 | — | — | 32 | |||||||||||||||
Total equity | (31 | ) | 1,290 | (21 | ) | (1,227 | ) | 11 | ||||||||||||
Total liabilities, redeemable noncontrolling interests and equity | $ | 5,429 | $ | 2,821 | $ | 6,529 | $ | (11,938 | ) | $ | 2,841 | |||||||||
133
Year Ended December 31, 2010 | ||||||||||||||||||||
Tenneco Inc. | ||||||||||||||||||||
Guarantor | Nonguarantor | (Parent | Reclass | |||||||||||||||||
Subsidiaries | Subsidiaries | Company) | & 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 | |||||||||||||||
Retirement of long-term debt | — | (4 | ) | (860 | ) | — | (864 | ) | ||||||||||||
Debt issuance cost on long-term debt | — | — | (24 | ) | — | (24 | ) | |||||||||||||
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 | ||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||
Guarantor Subsidiaries | Nonguarantor Subsidiaries | Tenneco Inc. (Parent Company) | Reclass & Elims | Consolidated | |||||||||||||||
(Millions) | |||||||||||||||||||
Operating Activities | |||||||||||||||||||
Net cash provided (used) by operating activities | $ | 270 | $ | 185 | $ | 48 | $ | — | $ | 503 | |||||||||
Investing Activities | |||||||||||||||||||
Proceeds from sale of assets | 1 | 7 | — | — | 8 | ||||||||||||||
Cash payments for plant, property, and equipment | (102 | ) | (142 | ) | — | — | (244 | ) | |||||||||||
Cash payments for software related intangible assets | (19 | ) | (6 | ) | — | — | (25 | ) | |||||||||||
Changes in restricted cash | — | (5 | ) | — | — | (5 | ) | ||||||||||||
Net cash used by investing activities | (120 | ) | (146 | ) | — | — | (266 | ) | |||||||||||
Financing Activities | |||||||||||||||||||
Retirement of long-term debt | — | (2 | ) | (14 | ) | — | (16 | ) | |||||||||||
Tax benefit from stock-based compensation | — | — | 24 | — | 24 | ||||||||||||||
Purchase of common stock under the share repurchase program | — | — | (27 | ) | — | (27 | ) | ||||||||||||
Issuance of common stock | — | — | 20 | — | 20 | ||||||||||||||
Increase in bank overdrafts | — | (6 | ) | — | — | (6 | ) | ||||||||||||
Net increase in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivable | — | (43 | ) | 21 | — | (22 | ) | ||||||||||||
Net increase in short-term borrowings secured by accounts receivable | — | — | (40 | ) | — | (40 | ) | ||||||||||||
Intercompany dividends and net increase (decrease) in intercompany obligations | (148 | ) | 180 | (32 | ) | — | — | ||||||||||||
Purchase of noncontrolling equity interest | — | (69 | ) | — | — | (69 | ) | ||||||||||||
Distribution to noncontrolling interests partners | — | (39 | ) | — | — | (39 | ) | ||||||||||||
Net cash provided (used) by financing activities | (148 | ) | 21 | (48 | ) | — | (175 | ) | |||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | (10 | ) | — | — | (10 | ) | ||||||||||||
Increase in cash and cash equivalents | 2 | 50 | — | — | 52 | ||||||||||||||
Cash and cash equivalents, January 1 | 4 | 219 | — | — | 223 | ||||||||||||||
Cash and cash equivalents, December 31 (Note) | $ | 6 | $ | 269 | $ | — | $ | — | $ | 275 |
Note: | Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase. |
134
Year Ended December 31, 2009 | ||||||||||||||||||||
Tenneco Inc. | ||||||||||||||||||||
Guarantor | Nonguarantor | (Parent | Reclass | |||||||||||||||||
Subsidiaries | Subsidiaries | Company) | & 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 | ) | ||||||||||||
Investments 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 | |||||||||||||||
Retirement of long-term debt | — | (5 | ) | (17 | ) | — | (22 | ) | ||||||||||||
Debt issuance cost on long-term debt | — | — | (8 | ) | — | (8 | ) | |||||||||||||
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 | ||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||
Guarantor Subsidiaries | Nonguarantor Subsidiaries | Tenneco Inc. (Parent Company) | Reclass & Elims | Consolidated | |||||||||||||||
(Millions) | |||||||||||||||||||
Operating Activities | |||||||||||||||||||
Net cash provided (used) by operating activities | $ | 385 | $ | 206 | $ | (226 | ) | $ | — | $ | 365 | ||||||||
Investing Activities | |||||||||||||||||||
Proceeds from sale of assets | — | 3 | — | — | 3 | ||||||||||||||
Cash payments for plant, property, and equipment | (101 | ) | (155 | ) | — | — | (256 | ) | |||||||||||
Cash payments for software related intangible assets | (6 | ) | (7 | ) | — | — | (13 | ) | |||||||||||
Cash payments for net assets purchased | (7 | ) | — | — | — | (7 | ) | ||||||||||||
Net cash used by investing activities | (114 | ) | (159 | ) | — | — | (273 | ) | |||||||||||
Financing Activities | |||||||||||||||||||
Retirement of long-term debt | — | (1 | ) | (410 | ) | — | (411 | ) | |||||||||||
Issuance of long-term debt | — | — | 250 | — | 250 | ||||||||||||||
Debt issuance cost on long-term debt | — | — | (13 | ) | — | (13 | ) | ||||||||||||
Purchase of common stock under the share repurchase program | — | — | (18 | ) | — | (18 | ) | ||||||||||||
Issuance of common stock | — | — | 5 | — | 5 | ||||||||||||||
Increase 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 receivable | — | 48 | 19 | — | 67 | ||||||||||||||
Net increase in short-term borrowings secured by accounts receivable | — | — | 50 | — | 50 | ||||||||||||||
Intercompany dividends and net increase (decrease) in intercompany obligations | (268 | ) | (75 | ) | 343 | — | — | ||||||||||||
Capital contribution from noncontrolling interest partner | — | 5 | — | — | 5 | ||||||||||||||
Distribution to noncontrolling interests partners | — | (29 | ) | — | — | (29 | ) | ||||||||||||
Net cash provided (used) by financing activities | (268 | ) | (47 | ) | 226 | — | (89 | ) | |||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | 6 | — | — | 6 | ||||||||||||||
Increase (decrease) in cash and cash equivalents | 3 | 6 | — | — | 9 | ||||||||||||||
Cash and cash equivalents, January 1 | 1 | 213 | — | — | 214 | ||||||||||||||
Cash and cash equivalents, December 31 (Note) | $ | 4 | $ | 219 | $ | — | $ | — | $ | 223 |
Note: | Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase. |
135
Year Ended December 31, 2008 | ||||||||||||||||||||
Tenneco Inc. | ||||||||||||||||||||
Guarantor | Nonguarantor | (Parent | Reclass | |||||||||||||||||
Subsidiaries | Subsidiaries | Company) | & Elims | Consolidated | ||||||||||||||||
(Millions) | ||||||||||||||||||||
Operating Activities | ||||||||||||||||||||
Net cash provided (used) by operating activities | $ | 167 | $ | 130 | $ | (137 | ) | $ | — | $ | 160 | |||||||||
Investing Activities | ||||||||||||||||||||
Proceeds from sale of assets | — | 3 | — | — | 3 | |||||||||||||||
Cash payments for plant, property, and equipment | (90 | ) | (143 | ) | — | — | (233 | ) | ||||||||||||
Acquisition of business (net of cash acquired) | (19 | ) | 3 | — | — | (16 | ) | |||||||||||||
Cash payments for software related intangible assets | (9 | ) | (6 | ) | — | — | (15 | ) | ||||||||||||
Net cash used by investing activities | (118 | ) | (143 | ) | — | — | (261 | ) | ||||||||||||
Financing Activities | ||||||||||||||||||||
Issuance of common shares | — | — | 2 | — | 2 | |||||||||||||||
Issuance of long-term debt | — | 1 | — | — | 1 | |||||||||||||||
Retirement of long-term debt | — | (4 | ) | (2 | ) | — | (6 | ) | ||||||||||||
Debit issuance cost on long-term debt | — | — | (2 | ) | — | (2 | ) | |||||||||||||
Increase (decrease) in bank overdrafts | — | (1 | ) | — | — | (1 | ) | |||||||||||||
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt | — | 7 | 70 | — | 77 | |||||||||||||||
Intercompany dividends and net increase (decrease) in intercompany obligations | (39 | ) | (30 | ) | 69 | — | — | |||||||||||||
Distribution to noncontrolling interests partners | — | (13 | ) | — | — | (13 | ) | |||||||||||||
Net cash provided (used) by financing activities | (39 | ) | (40 | ) | 137 | — | 58 | |||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | (19 | ) | — | — | (19 | ) | |||||||||||||
Increase (decrease) in cash and cash equivalents | 10 | (72 | ) | — | — | (62 | ) | |||||||||||||
Cash and cash equivalents, January 1 | 6 | 182 | — | — | 188 | |||||||||||||||
Cash and cash equivalents, December 31 (Note) | $ | 16 | $ | 110 | $ | — | $ | — | $ | 126 | ||||||||||
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 | ) | |||||||||||
Cash payments for net assets purchased | — | — | — | — | — | ||||||||||||||
Net cash used by investing activities | (70 | ) | (154 | ) | — | — | (224 | ) | |||||||||||
Financing Activities | |||||||||||||||||||
Retirement of long-term debt | — | (1 | ) | (23 | ) | — | (24 | ) | |||||||||||
Issuance of long-term debt | — | 5 | — | — | 5 | ||||||||||||||
Debt issuance cost on long-term debt | — | — | (1 | ) | — | (1 | ) | ||||||||||||
Purchase of common stock under the share repurchase program | — | — | (16 | ) | — | (16 | ) | ||||||||||||
Increase in bank overdrafts | — | 3 | — | — | 3 | ||||||||||||||
Net decrease in revolver borrowings and short-term debt excluding current maturities of long-term debt | — | 6 | 24 | — | 30 | ||||||||||||||
Net increase in short-term borrowings secured by accounts receivable | — | — | — | — | — | ||||||||||||||
Intercompany dividends and net increase (decrease) in intercompany obligations | (330 | ) | 75 | 255 | ��� | — | |||||||||||||
Capital contribution from noncontrolling interest partner | — | 1 | — | — | 1 | ||||||||||||||
Purchase of noncontrolling equity interest | — | (4 | ) | — | — | (4 | ) | ||||||||||||
Distribution to noncontrolling interests partners | — | (20 | ) | — | — | (20 | ) | ||||||||||||
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. |
Earnings Before | ||||||||||||||||
Net Sales | Cost of Sales | Interest Expense, | Net Income (Loss) | |||||||||||||
and | (Excluding | Income Taxes | Attributable | |||||||||||||
Operating | Depreciation and | and Noncontrolling | to Tenneco | |||||||||||||
Quarter | Revenues | Amortization) | Interests | Inc. | ||||||||||||
(Millions) | ||||||||||||||||
2010 | ||||||||||||||||
1st | $ | 1,316 | $ | 1,073 | $ | 59 | $ | 7 | ||||||||
2nd | 1,502 | 1,222 | 93 | 40 | ||||||||||||
3rd | 1,542 | 1,280 | 67 | 10 | ||||||||||||
4th | 1,577 | 1,325 | 62 | (18 | ) | |||||||||||
$ | 5,937 | $ | 4,900 | $ | 281 | $ | 39 | |||||||||
2009 | ||||||||||||||||
1st | $ | 967 | $ | 827 | $ | (13 | ) | $ | (49 | ) | ||||||
2nd | 1,106 | 913 | 17 | (33 | ) | |||||||||||
3rd | 1,254 | 1,043 | 35 | (8 | ) | |||||||||||
4th | 1,322 | 1,092 | 53 | 17 | ||||||||||||
$ | 4,649 | $ | 3,875 | $ | 92 | $ | (73 | ) | ||||||||
Basic | Diluted | ||||||||||||||||||||||
Earnings (Loss) | Earnings (Loss) | ||||||||||||||||||||||
per Share of | per Share of | ||||||||||||||||||||||
Quarter | Common Stock | Common Stock | Net Sales and Operating Revenues | Cost of Sales (Excluding Depreciation and Amortization) | Earnings Before Interest Expense, Income Taxes and Noncontrolling Interests | Net Income Attributable to Tenneco Inc. | |||||||||||||||||
(Millions) | |||||||||||||||||||||||
2010 | |||||||||||||||||||||||
2013 | |||||||||||||||||||||||
1st | $ | 0.11 | $ | 0.11 | $ | 1,903 | $ | 1,604 | $ | 93 | $ | 54 | |||||||||||
2nd | 0.68 | 0.66 | 2,067 | 1,736 | 141 | 63 | |||||||||||||||||
3rd | 0.17 | 0.17 | 1,963 | 1,691 | 72 | 12 | |||||||||||||||||
4th | (0.31 | ) | (0.31 | ) | 2,031 | 1,703 | 118 | 54 | |||||||||||||||
Full Year | 0.65 | 0.63 | |||||||||||||||||||||
2009 | |||||||||||||||||||||||
$ | 7,964 | $ | 6,734 | $ | 424 | $ | 183 | ||||||||||||||||
2012 | |||||||||||||||||||||||
1st | $ | (1.05 | ) | $ | (1.05 | ) | $ | 1,912 | $ | 1,607 | $ | 96 | $ | 30 | |||||||||
2nd | (0.72 | ) | (0.72 | ) | 1,920 | 1,595 | 137 | 87 | |||||||||||||||
3rd | (0.17 | ) | (0.17 | ) | 1,778 | 1,494 | 111 | 125 | |||||||||||||||
4th | 0.33 | 0.32 | 1,753 | 1,474 | 84 | 33 | |||||||||||||||||
Full Year | (1.50 | ) | (1.50 | ) | |||||||||||||||||||
$ | 7,363 | $ | 6,170 | $ | 428 | $ | 275 |
Quarter | Basic Earnings per Share of Common Stock | Diluted Earnings per Share of Common Stock | |||||
2013 | |||||||
1st | $ | 0.90 | $ | 0.88 | |||
2nd | 1.04 | 1.02 | |||||
3rd | 0.19 | 0.19 | |||||
4th | 0.90 | 0.88 | |||||
Full Year | 3.03 | 2.97 | |||||
2012 | |||||||
1st | $ | 0.50 | $ | 0.49 | |||
2nd | 1.45 | 1.42 | |||||
3rd | 2.09 | 2.05 | |||||
4th | 0.55 | 0.54 | |||||
Full Year | 4.58 | 4.50 |
Note: | The sum of the quarters may not equal the total of the respective year’s earnings per share on either a basic or diluted basis due to changes in the weighted average shares outstanding throughout the year. |
137
Column A | Column B | Column C | Column D | Column E | ||||||||||||||||
Additions | ||||||||||||||||||||
Balance | Charged | Charged | ||||||||||||||||||
at | to | to | Balance | |||||||||||||||||
Beginning | Costs and | Other | at End | |||||||||||||||||
Description | of Year | Expenses | Accounts | Deductions | of Year | |||||||||||||||
(Millions) | ||||||||||||||||||||
Allowance for Doubtful Accounts and Notes Receivable Deducted from Assets to Which it Applies: | ||||||||||||||||||||
Year Ended December 31, 2010 | $ | 25 | $ | 2 | $ | — | $ | 7 | $ | 20 | ||||||||||
Year Ended December 31, 2009 | $ | 24 | $ | 5 | $ | — | $ | 4 | $ | 25 | ||||||||||
Year Ended December 31, 2008 | $ | 25 | $ | 3 | $ | 2 | $ | 6 | $ | 24 | ||||||||||
Column A | Column B | Column C | Column D | Column E | ||||||||||||
Additions | ||||||||||||||||
Description | Balance at Beginning of Year | Charged to Costs and Expenses | Charged to Other Accounts | Deductions | Balance at End of Year | |||||||||||
(Millions) | ||||||||||||||||
Allowance for Doubtful Accounts and Notes Receivable Deducted from Assets to Which it Applies: | ||||||||||||||||
Year Ended December 31, 2013 | $ | 14 | 1 | — | 1 | $ | 14 | |||||||||
Year Ended December 31, 2012 | $ | 17 | 3 | — | 6 | $ | 14 | |||||||||
Year Ended December 31, 2011 | $ | 20 | 1 | — | 4 | $ | 17 |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE. |
ITEM 9A. | CONTROLS AND PROCEDURES. |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE. |
ITEM 11. | EXECUTIVE COMPENSATION. |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS. |
(a) | (c) | |||||||||||
Number of | (b) | Number of | ||||||||||
securities to be | Weighted- | securities | ||||||||||
issued upon | average exercise | available for | ||||||||||
exercise of | price of | future | ||||||||||
outstanding | outstanding | issuance | ||||||||||
options, | options, | (excluding | ||||||||||
warrants and | warrants and | shares in | ||||||||||
Plan category | rights(1) | rights | column (a))(1) | |||||||||
Equity compensation plans approved by security holders: | ||||||||||||
Stock Ownership Plan(2) | 293,266 | $ | 7.37 | — | ||||||||
2002 Long-Term Incentive Plan (as amended)(3) | 892,587 | $ | 12.32 | — | ||||||||
2006 Long-Term Incentive Plan(4) | 1,943,388 | $ | 16.47 | 1,912,243 |
Plan category | (a) Number of securities to be issued upon exercise of outstanding options, warrants and rights(1) | (b) Weighted- average exercise price of outstanding options, warrants and rights | (c) Number of securities available for future issuance (excluding shares in column (a))(1) | |||||||
Equity compensation plans approved by security holders: | ||||||||||
Stock Ownership Plan(2) | 76,075 | $ | 20.34 | — | ||||||
2002 Long-Term Incentive Plan (as amended)(3) | 12,628 | $ | 9.74 | — | ||||||
2006 Long-Term Incentive Plan (as amended)(4) | 1,894,870 | $ | 23.12 | 3,979,918 |
(1) | Reflects the number of shares of the Company’s common stock. Does not include |
(2) | This plan terminated as to new awards on December 31, 2001 (except awards pursuant to commitments outstanding at that date). |
(3) | This plan terminated as to new awards upon adoption of our 2006 Long-term Incentive Plan (except awards pursuant to commitments outstanding on that date). |
140
(4) | Does not include |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE. |
ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
123 PART IV ITEM 15. | EXHIBITS, |
Page | |||||
142
Exhibit | ||||||
Number | Description | |||||
2 | — | None. | ||||
3 | .1(a) | — | Restated Certificate of Incorporation of the registrant dated December 11, 1996 (incorporated herein by reference to Exhibit 3.1(a) of the registrant’s Annual Report onForm 10-K for the year ended December 31, 1997, FileNo. 1-12387). | |||
3 | .1(b) | — | Certificate of Amendment, dated December 11, 1996 (incorporated herein by reference to Exhibit 3.1(c) of the registrant’s Annual Report onForm 10-K for the year ended December 31, 1997, FileNo. 1-12387). | |||
3 | .1(c) | — | Certificate of Ownership and Merger, dated July 8, 1997 (incorporated herein by reference to Exhibit 3.1(d) of the registrant’s Annual Report onForm 10-K for the year ended December 31, 1997, FileNo. 1-12387). | |||
3 | .1(d) | — | Certificate of Designation of Series B Junior Participating Preferred Stock dated September 9, 1998 (incorporated herein by reference to Exhibit 3.1(d) of the registrant’s Quarterly Report onForm 10-Q for the quarter ended September 30, 1998, FileNo. 1-12387). | |||
3 | .1(e) | — | Certificate of Elimination of the Series A Participating Junior Preferred Stock of the registrant dated September 11, 1998 (incorporated herein by reference to Exhibit 3.1(e) of the registrant’s Quarterly Report onForm 10-Q for the quarter ended September 30, 1998, FileNo. 1-12387). | |||
3 | .1(f) | — | Certificate of Amendment to Restated Certificate of Incorporation of the registrant dated November 5, 1999 (incorporated herein by reference to Exhibit 3.1(f) of the registrant’s Quarterly Report onForm 10-Q for the quarter ended September 30, 1999, FileNo. 1-12387). | |||
3 | .1(g) | — | Certificate of Amendment to Restated Certificate of Incorporation of the registrant dated November 5, 1999 (incorporated herein by reference to Exhibit 3.1(g) of the registrant’s Quarterly Report onForm 10-Q for the quarter ended September 30, 1999, FileNo. 1-12387). | |||
3 | .1(h) | — | Certificate of Ownership and Merger merging Tenneco Automotive Merger Sub Inc. with and into the registrant, dated November 5, 1999 (incorporated herein by reference to Exhibit 3.1(h) of the registrant’s Quarterly Report onForm 10-Q for the quarter ended September 30, 1999,File No. 1-12387). | |||
3 | .1(i) | — | Certificate of Amendment to Restated Certificate of Incorporation of the registrant dated May 9, 2000 (incorporated herein by reference to Exhibit 3.1(i) of the registrant’s Quarterly Report onForm 10-Q for the quarter ended March 31, 2000, FileNo. 1-12387). | |||
3 | .1(j) | — | Certificate of Ownership and Merger merging Tenneco Inc. with and into the registrant, dated October 27, 2005 (incorporated herein by reference to Exhibit 99.1 of the registrant’s Current Report onForm 8-K dated October 28, 2005, FileNo. 1-12387). | |||
3 | .2 | — | By-laws of the registrant, as amended March 4, 2008 (incorporated herein by reference to Exhibit 99.1 of the registrant’s Current Report onForm 8-K event date March 4, 2008, FileNo. 1-12387). | |||
3 | .3 | — | Certificate of Incorporation of Tenneco Global Holdings Inc. (“Global”), as amended (incorporated herein by reference to Exhibit 3.3 of the registrant’s Registration Statement onForm S-4,Reg. No. 333-93757). | |||
3 | .4 | — | By-laws of Global (incorporated herein by reference to Exhibit 3.4 of the registrant’s Registration Statement onForm S-4, Reg.No. 333-93757). | |||
3 | .5 | — | Certificate of Incorporation of TMC Texas Inc. (“TMC”) (incorporated herein by reference to Exhibit 3.5 of the registrant’s Registration Statement onForm S-4, Reg.No. 333-93757). | |||
3 | .6 | — | By-laws of TMC (incorporated herein by reference to Exhibit 3.6 of the registrant’s Registration Statement onForm S-4, Reg.No. 333-93757). |
143
Exhibit | ||||||
Number | Description | |||||
3 | .7 | — | Amended and Restated Certificate of Incorporation of Tenneco International Holding Corp. dated as of April 29, 2010 (incorporated herein by reference to Exhibit 3.1 of the registrant’s Quarterly Report onForm 10-Q for the quarter ended September 30, 2010, FileNo. 1-12387). | |||
3 | .8 | — | Amended and Restated By-laws of TIHC (incorporated herein by reference to Exhibit 3.8 of the registrant’s Registration Statement onForm S-4, Reg.No. 333-93757). | |||
3 | .9 | — | Certificate of Incorporation of Clevite Industries Inc. (“Clevite”), as amended (incorporated herein by reference to Exhibit 3.9 of the registrant’s Registration Statement onForm S-4, Reg.No. 333-93757). | |||
3 | .10 | — | By-laws of Clevite (incorporated herein by reference to Exhibit 3.10 of the registrant’s Registration Statement onForm S-4, Reg.No. 333-93757). | |||
3 | .11 | — | Amended and Restated Certificate of Incorporation of The Pullman Company (“Pullman”) (incorporated herein by reference to Exhibit 3.11 of the registrant’s Registration Statement onForm S-4, Reg.No. 333-93757). | |||
3 | .12 | — | By-laws of Pullman (incorporated herein by reference to Exhibit 3.12 of the registrant’s Registration Statement onForm S-4, Reg.No. 333-93757). | |||
3 | .13 | — | Certificate of Incorporation of Tenneco Automotive Operating Company Inc. (“Operating”) (incorporated herein by reference to Exhibit 3.13 of the registrant’s Registration Statement onForm S-4, Reg.No. 333-93757). | |||
3 | .14 | — | By-laws of Operating (incorporated herein by reference to Exhibit 3.14 of the registrant’s Registration Statement onForm S-4, Reg.No. 333-93757). | |||
4 | .1(a) | — | Indenture, dated as of November 1, 1996, between the registrant and The Chase Manhattan Bank, as Trustee (incorporated herein by reference to Exhibit 4.1 of the registrant’s Registration Statement onForm S-4, RegistrationNo. 333-14003). | |||
4 | .1(b) | — | Third Supplemental Indenture dated as of December 11, 1996 to Indenture dated as of November 1, 1996 between the registrant and The Chase Manhattan Bank, as Trustee (incorporated herein by reference to Exhibit 4.3(d) of the registrant’s Annual Report onForm 10-K for the year ended December 31, 1996, FileNo. 1-12387). | |||
4 | .1(c) | — | Fourth Supplemental Indenture dated as of December 11, 1996 to Indenture dated as of November 1, 1996 between the registrant and The Chase Manhattan Bank, as Trustee (incorporated herein by reference to Exhibit 4.3(e) of the registrant’s Annual Report onForm 10-K for the year ended December 31, 1996, FileNo. 1-12387). | |||
4 | .1(d) | — | Eleventh Supplemental Indenture, dated October 21, 1999, to Indenture dated November 1, 1996 between The Chase Manhattan Bank, as Trustee, and the registrant (incorporated herein by reference to Exhibit 4.2(l) of the registrant’s Quarterly Report onForm 10-Q for the quarter ended September 30, 1999, FileNo. 1-12387). | |||
4 | .2 | — | Specimen stock certificate for Tenneco Inc. common stock (incorporated herein by reference to Exhibit 4.3 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2006,File No. 1-12387). | |||
4 | .3(a) | — | Second Amended and Restated Credit Agreement, dated as of March 16, 2007, among Tenneco Inc., JPMorgan Chase Bank, N.A., as administrative agent, and the other lenders party thereto (incorporated herein by reference to Exhibit 99.1 of the registrant’s Current Report onForm 8-K dated March 16, 2007). | |||
4 | .3(b) | — | Guarantee and Collateral Agreement, dated as of March 16, 2007 (amending and restating the Guarantee and Collateral Agreement dated as of November 4, 1999, as previously amended and amended and restated), among Tenneco Inc., various of its subsidiaries and JPMorgan Chase Bank, N.A., as administrative agent (incorporated herein by reference to Exhibit 99.2 of the registrant’s Current Report onForm 8-K dated March 16, 2007). | |||
4 | .3(c) | — | Waiver, dated July 23, 2007, to Second Amended and Restated Credit Agreement, dated as March 16, 2007, by and among the registrant, JPMorgan Chase Bank, N.A., as administrative agent, and the other lenders party thereto (incorporated herein by reference to Exhibit 4.5(c) of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2007, FileNo. 1-12387). |
144
Exhibit | ||||||
Number | Description | |||||
4 | .3(d) | — | Second Amendment, dated November 26, 2007, to Second Amended and Restated Credit Agreement, dated as March 16, 2007, by and among the registrant, JPMorgan Chase Bank, N.A., as administrative agent, and the other lenders party thereto (incorporated herein by reference to Exhibit 4.5(d) of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2007, FileNo. 1-12387). | |||
4 | .3(e) | — | Third Amendment, dated as of December 23, 2008, to Second Amended and Restated Credit Agreement, dated as of March 16, 2007, by and among the registrant, JPMorgan Chase Bank, N.A., as administrative agent, and the other lenders party thereto (incorporated herein by reference to Exhibit 10.1 of the registrant’s Current Report onForm 8-K dated December 23, 2008). | |||
4 | .3(f) | — | Fourth Amendment, dated as of February 23, 2009, to Second Amended and Restated Credit Agreement, dated as of March 16, 2007, by and among the registrant, JP Morgan Chase Bank, N.A., as administrative agent, and the other lenders party thereto (incorporated herein by reference to Exhibit 4.1 of the registrant’s Current Report onForm 8-K dated February 23, 2009). | |||
4 | .3(g) | — | Fifth Amendment to the Second Amended and Restated Credit Agreement, dated June 3, 2010, by and among the registrant, various subsidiaries of the registrant and JP Morgan Chase Bank, N.A., as administrative agent (incorporated herein by reference to Exhibit 99.1 of the registrant’s Current Report onForm 8-K filed June 9, 2010, FileNo. 1-12387). | |||
4 | .3(h) | — | Sixth Amendment to the Second Amended and Restated Credit Agreement, dated November 15, 2010, by and among the registrant, various subsidiaries of the registrant and JP Morgan Chase Bank, N.A., as administrative agent (incorporated herein by reference to Exhibit 4.1 of the registrant’s Current Report onForm 8-K filed November 30, 2010, FileNo. 1-12387). | |||
4 | .4(a) | — | Indenture, dated as of November 19, 2007, by and among the registrant, the subsidiary guarantors party thereto and Wells Fargo Bank, N.A., as trustee (incorporated herein by reference to Exhibit 4.9(a) of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2007, FileNo. 1-12387). | |||
4 | .4(b) | — | Agreement of Resignation, Appointment and Acceptance between Tenneco Inc., Wells Fargo Bank, National Association and Bank of New York Mellon Trust Company, N. A. (incorporated herein by reference to Exhibit 10.1 of the registrant’s Quarterly Report onForm 10-Q for the quarter ended September 30, 2009, FileNo. 1-12387). | |||
4 | .5(a) | — | Indenture, dated August 3, 2010, among the registrant, various subsidiaries of the registrant and U.S. Bank National Association, as trustee (incorporated herein by reference to Exhibit 4.1 of the registrant’s Current Report onForm 8-K filed August 3, 2010, FileNo. 1-12387). | |||
4 | .5(b) | — | Registration Rights Agreement, dated August 3, 2010, among the registrant, various subsidiaries of the registrant and the initial purchasers named therein (incorporated herein by reference to Exhibit 4.2 of the registrant’s Current Report onForm 8-K filed August 3, 2010, FileNo. 1-12387). | |||
4 | .6(a) | Indenture, dated December 23, 2010, among the registrant, various subsidiaries of the registrant and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated herein by reference to Exhibit 4.1 of the registrant’s Current Report onForm 8-K filed December 23, 2010,File No. 1-12387). | ||||
4 | .6(b) | Registration Rights Agreement, dated December 23, 2010, among the registrant, various subsidiaries of the registrant and the initial purchasers named therein (incorporated herein by reference to Exhibit 4.2 of the registrant’s Current Report onForm 8-K filed December 23, 2010,File No. 1-12387). | ||||
9 | — | None. | ||||
10 | .1 | Distribution Agreement, dated November 1, 1996, by and among El Paso Tennessee Pipeline Co., the registrant, and Newport News Shipbuilding Inc. (incorporated herein by reference to Exhibit 2 of the registrant’s Form 10, FileNo. 1-12387). | ||||
10 | .2 | — | Amendment No. 1 to Distribution Agreement, dated as of December 11, 1996, by and among El Paso Tennessee Pipeline Co., the registrant, and Newport News Shipbuilding Inc. (incorporated herein by reference to Exhibit 10.2 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 1996, FileNo. 1-12387). | |||
10 | .3 | — | Debt and Cash Allocation Agreement, dated December 11, 1996, by and among El Paso Tennessee Pipeline Co. , the registrant, and Newport News Shipbuilding Inc. (incorporated herein by reference to Exhibit 10.3 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 1996, FileNo. 1-12387). |
145
Exhibit | ||||||
Number | Description | |||||
10 | .4 | — | Benefits Agreement, dated December 11, 1996, by and among El Paso Tennessee Pipeline Co., the registrant, and Newport News Shipbuilding Inc. (incorporated herein by reference to Exhibit 10.4 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 1996,File No. 1-12387). | |||
10 | .5 | — | Insurance Agreement, dated December 11, 1996, by and among El Paso Tennessee Pipeline Co., the registrant, and Newport News Shipbuilding Inc. (incorporated herein by reference to Exhibit 10.5 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 1996,File No. 1-12387). | |||
10 | .6 | — | Tax Sharing Agreement, dated December 11, 1996, by and among El Paso Tennessee Pipeline Co., Newport News Shipbuilding Inc., the registrant, and El Paso Natural Gas Company (incorporated herein by reference to Exhibit 10.6 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 1996, FileNo. 1-12387). | |||
10 | .7 | — | First Amendment to Tax Sharing Agreement, dated as of December 11, 1996, among El Paso Tennessee Pipeline Co., the registrant, El Paso Natural Gas Company and Newport News Shipbuilding Inc. (incorporated herein by reference to Exhibit 10.7 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 1996, FileNo. 1-12387). | |||
+10 | .8 | — | Change of Control Severance Benefits Plan for Key Executives (incorporated herein by reference to Exhibit 10.13 of the registrant’s Quarterly Report onForm 10-Q for the quarter ended September 30, 1999, FileNo. 1-12387). | |||
+10 | .9 | — | Stock Ownership Plan (incorporated herein by reference to Exhibit 10.10 of the registrant’s Registration Statement onForm S-4, Reg.No. 333-93757). | |||
+10 | .10 | — | Key Executive Pension Plan (incorporated herein by reference to Exhibit 10.11 of the registrant’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2000, FileNo. 1-12387). | |||
+10 | .11 | — | Deferred Compensation Plan (incorporated herein by reference to Exhibit 10.12 of the registrant’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2000, FileNo. 1-12387). | |||
+10 | .12 | — | Supplemental Executive Retirement Plan (incorporated herein by reference to Exhibit 10.13 of the registrant’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2000, FileNo. 1-12387). | |||
10 | .13 | — | Human Resources Agreement by and between the registrant and Tenneco Packaging Inc. dated November 4, 1999 (incorporated herein by reference to Exhibit 99.1 of the registrant’s Current Report onForm 8-K dated November 4, 1999, FileNo. 1-12387). | |||
10 | .14 | — | Tax Sharing Agreement by and between the registrant and Tenneco Packaging Inc. dated November 3, 1999 (incorporated herein by reference to Exhibit 99.2 of the registrant’s Current Report onForm 8-K dated November 4, 1999, FileNo. 1-12387). | |||
10 | .15 | — | Amended and Restated Transition Services Agreement by and between the registrant and Tenneco Packaging Inc. dated as of November 4, 1999 (incorporated herein by reference to Exhibit 10.21 of the registrant’s Quarterly Report onForm 10-Q for the quarter ended September 30, 1999, FileNo. 1-12387). | |||
10 | .16 | — | Assumption Agreement among Tenneco Automotive Operating Company Inc., Tenneco International Holding Corp., Tenneco Global Holdings Inc., The Pullman Company, Clevite Industries Inc., TMC Texas Inc., Salomon Smith Barney Inc. and the other Initial Purchasers listed in the Purchase Agreement dated as of November 4, 1999 (incorporated herein by reference to Exhibit 10.24 of the registrant’s Registration Statement onForm S-4, Reg.No. 333-93757). | |||
+10 | .17 | — | Amendment No. 1 to Change in Control Severance Benefits Plan for Key Executives (incorporated herein by reference to Exhibit 10.23 of the registrant’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2000, FileNo. 1-12387). | |||
+10 | .18 | — | Form of Indemnity Agreement entered into between the registrant and the following directors of the registrant: Paul Stecko, M. Kathryn Eickhoff and Dennis Severance (incorporated herein by reference to Exhibit 10.29 of the registrant’s Quarterly Report onForm 10-Q for the quarter ended September 30, 2000, FileNo. 1-12387). | |||
+10 | .19 | — | Letter Agreement dated July 27, 2000 between the registrant and Timothy E. Jackson (incorporated herein by reference to Exhibit 10.27 of the registrant’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2000, FileNo. 1-12387). |
146
Exhibit Number | Description | |||||||
2 | — | None. | ||||||
3.1(a) | Restated Certificate of | |||||||
3.1(b) | ||||||||
3.1(c) | — | Certificate of Ownership and Merger, dated July 8, 1997 (incorporated herein by reference to Exhibit 3.1(d) of the registrant’s Annual Report on Form 10-K for the year ended December 31, 1997, File No. 1-12387). | ||||||
3.1(d) | — | Certificate of Designation of Series B Junior Participating Preferred Stock dated September 9, 1998 (incorporated herein by reference to Exhibit 3.1(d) of the registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 1998, File No. 1-12387). | ||||||
3.1(e) | — | Certificate of Elimination of the Series A Participating Junior Preferred Stock of the registrant dated September 11, 1998 (incorporated herein by reference to Exhibit 3.1(e) of the registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 1998, File No. 1-12387). | ||||||
3.1(f) | — | Certificate of Amendment to Restated Certificate of Incorporation of the registrant dated November 5, 1999 (incorporated herein by reference to Exhibit 3.1(f) of the registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 1999, File No. 1-12387). | ||||||
3.1(g) | — | Certificate of Amendment to Restated Certificate of Incorporation of the registrant dated November 5, 1999 (incorporated herein by reference to Exhibit 3.1(g) of the registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 1999, File No. 1-12387). | ||||||
3.1(h) | — | Certificate of Ownership and Merger merging Tenneco Automotive Merger Sub Inc. with and into the registrant, dated November 5, 1999 (incorporated herein by reference to Exhibit 3.1(h) of the registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 1999, File No. 1-12387). | ||||||
3.1(i) | — | Certificate of Amendment to Restated Certificate of Incorporation of the registrant dated May 9, 2000 (incorporated herein by reference to Exhibit 3.1(i) of the registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2000, File No. 1-12387). | ||||||
3.1(j) | — | Certificate of Ownership and Merger merging Tenneco Inc. with and into the registrant, dated October 27, 2005 (incorporated herein by reference to Exhibit 99.1 of the registrant’s Current Report on Form 8-K dated October 28, 2005, File No. 1-12387). | ||||||
3.2 | — | By-laws of the registrant, as amended March 4, 2008 (incorporated herein by reference to Exhibit 99.1 of the registrant’s Current Report on Form 8-K event date March 4, 2008, File No. 1-12387). | ||||||
3.3 | — | Certificate of Incorporation of Tenneco Global Holdings Inc. (“Global”), as amended (incorporated herein by reference to Exhibit 3.3 of the registrant’s Registration Statement on Form S-4, Reg. No. 333-93757). | ||||||
3.4 | — | By-laws of Global (incorporated herein by reference to Exhibit 3.4 of the registrant’s Registration Statement on Form S-4, Reg. No. 333-93757). | ||||||
3.5 | — | Certificate of Incorporation of TMC Texas Inc. (“TMC”) (incorporated herein by reference to Exhibit 3.5 of the registrant’s Registration Statement on Form S-4, Reg. No. 333-93757). | ||||||
3.6 | — | By-laws of TMC (incorporated herein by reference to Exhibit 3.6 of the registrant’s Registration Statement on Form S-4, Reg. No. 333-93757). | ||||||
3.7 | — | Amended and Restated Certificate of Incorporation of Tenneco International Holding Corp. (“TIHC”) dated as of April 29, 2010 (incorporated herein by reference to Exhibit 3.1 of the registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2010, File No. 1-12387). | ||||||
3.8 | — | Amended and Restated By-laws of TIHC (incorporated herein by reference to Exhibit 3.8 of the registrant’s Registration Statement on Form S-4, Reg. No. 333-93757). | ||||||
3.9 | — | Certificate of Incorporation of Clevite Industries Inc. (“Clevite”), as amended (incorporated herein by reference to Exhibit 3.9 of the registrant’s Registration Statement on Form S-4, Reg. No. 333-93757). | ||||||
3.10 | — | By-laws of Clevite (incorporated herein by reference to Exhibit 3.10 of the registrant’s Registration Statement on Form S-4, Reg. No. 333-93757). |
Exhibit Number | Description | |||||
3.11 | — | Amended and Restated Certificate of Incorporation of The Pullman Company (“Pullman”) (incorporated herein by reference to Exhibit 3.11 of the registrant’s Registration Statement on Form S-4, Reg. No. 333-93757). | ||||
3.12 | — | By-laws of Pullman (incorporated herein by reference to Exhibit 3.12 of the registrant’s Registration Statement on Form S-4, Reg. No. 333-93757). | ||||
3.13 | — | Certificate of Incorporation of Tenneco Automotive Operating Company Inc. (“Operating”) (incorporated herein by reference to Exhibit 3.13 of the registrant’s Registration Statement on Form S-4, Reg. No. 333-93757). | ||||
3.14 | — | By-laws of Operating (incorporated herein by reference to Exhibit 3.14 of the registrant’s Registration Statement on Form S-4, Reg. No. 333-93757). | ||||
4.1 | — | Specimen stock certificate for Tenneco Inc. common stock (incorporated herein by reference to Exhibit 4.3 of the registrant’s Annual Report on Form 10-K for the year ended December 31, 2006, File No. 1-12387). | ||||
4.2(a) | — | Third Amended and Restated Credit Agreement, dated as of March 22, 2012, among Tenneco Inc., JPMorgan Chase Bank, N.A., as administrative agent, and the other lenders party thereto (incorporated herein by reference to Exhibit 4.1 of the registrant’s Current Report on Form 8-K dated March 22, 2012). | ||||
4.2(b) | — | Guarantee and Collateral Agreement, dated as of March 22, 2012 (amending and restating the Guarantee and Collateral Agreement dated as of March 17, 2007, as previously amended and restated), among Tenneco Inc., various of its subsidiaries and JPMorgan Chase Bank, N.A., as administrative agent (incorporated herein by reference to Exhibit 4.2 of the registrant’s Current Report on Form 8-K dated March 22, 2012). | ||||
4.3 | — | Indenture, dated August 3, 2010, among the registrant, various subsidiaries of the registrant and U.S. Bank National Association, as trustee (incorporated herein by reference to Exhibit 4.1 of the registrant’s Current Report on Form 8-K filed August 3, 2010, File No. 1-12387). | ||||
4.4 | — | Indenture, dated December 23, 2010, among the registrant, various subsidiaries of the registrant and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated herein by reference to Exhibit 4.1 of the registrant’s Current Report on Form 8-K filed December 23, 2010, File No. 1-12387). | ||||
4.5 | — | The registrant is a party to other agreements for unregistered long-term debt securities, which do not exceed 10% of the registrant’s total assets. The registrant agrees to furnish a copy of such agreements to the Commission upon request. | ||||
9 | — | None | ||||
+10.1 | — | Change of Control Severance Benefits Plan for Key Executives (incorporated herein by reference to Exhibit 10.13 of the registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 1999, File No. 1-12387). | ||||
+10.2 | — | Stock Ownership Plan (incorporated herein by reference to Exhibit 10.14 of the registrant’s Registration Statement on Form S-4, Reg. No. 333-93757). | ||||
+10.3 | — | Key Executive Pension Plan (incorporated herein by reference to Exhibit 10.11 of the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2000, File No. 1-12387). | ||||
+10.4 | — | Deferred Compensation Plan (incorporated herein by reference to Exhibit 10.12 of the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2000, File No. 1-12387). | ||||
+10.5 | — | Supplemental Executive Retirement Plan (incorporated herein by reference to Exhibit 10.13 of the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2000, File No. 1-12387). | ||||
+10.6 | — | Amendment No. 1 to Change in Control Severance Benefits Plan for Key Executives (incorporated herein by reference to Exhibit 10.23 of the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2000, File No. 1-12387). | ||||
+10.7 | — | Form of Indemnity Agreement entered into between the registrant and Paul Stecko (incorporated herein by reference to Exhibit 10.29 of the registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2000, File No. 1-12387). | ||||
+10.8 | — | 2002 Long-Term Incentive Plan (As Amended and Restated Effective March 11, 2003) (incorporated herein by reference to Exhibit 10.26 of the registrant’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2003, FileNo. 1-12387). | ||||
+ | 10.9 | — | Amendment No. 1 to Deferred Compensation Plan (incorporated herein by reference to Exhibit 10.27 of the registrant’s Annual Report onForm 10-K | |||
Exhibit Number | ||||||
+10.10 | — | Form of Stock Option Agreement for employees under the 2002 Long-Term Incentive Plan, as amended (providing for a ten year option term) (incorporated herein by reference to Exhibit 99.2 of the registrant’s Current Report onForm 8-K dated January 13, 2005, FileNo. 1-12387). | ||||
+ | 10.11 | — | ||||
Amendment No. 1 to the Key Executive Pension Plan (incorporated herein by reference to Exhibit 10.39 of the registrant’s Quarterly Report onForm 10-Q for the quarter ended March 31, 2005, FileNo. 1-12387). | ||||||
+ | 10.12 | — | Amendment No. 1 to the Supplemental Executive Retirement Plan (incorporated herein by reference to Exhibit 10.40 of the registrant’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2005, FileNo. 1-12387). | |||
+ | 10.13 | — | Second Amendment to the Key Executive Pension Plan (incorporated herein by reference to Exhibit 10.41 of the registrant’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2005, FileNo. 1-12387). | |||
+ | 10.14 | — | Amendment No. 2 to the Deferred Compensation Plan (incorporated herein by reference to Exhibit 10.42 of the registrant’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2005, FileNo. 1-12387). | |||
+ | 10.15 | — | Supplemental Retirement Plan (incorporated herein by reference to Exhibit 10.43 of the registrant’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2005, FileNo. 1-12387). | |||
+ | 10.16 | — | Supplemental Pension Plan for Management (incorporated herein by reference to Exhibit 10.45 of the registrant’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2005, FileNo. 1-12387). | |||
+ | 10.17 | — | ||||
Amended and Restated Value Added (“TAVA”) Incentive Compensation Plan, effective January 1, 2006 (incorporated herein by reference to Exhibit 10.47 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2005, FileNo. 1-12387). | ||||||
+ | 10.18 | — | Tenneco Inc. 2006 Long-Term Incentive Plan (incorporated herein by reference to Exhibit 99.1 of the registrant’s Current Report onForm 8-K, dated May 9, 2006). | |||
+ | 10.19 | — | ||||
Form of Stock Option Agreement for employees under the Tenneco Inc. 2006 Long-Term Incentive Plan (incorporated herein by reference to Exhibit 99.3 of the registrant’s Current Report onForm 8-K, |
147
+ | 10.20 | — | Form of First Amendment to the Tenneco Inc. Supplemental Pension Plan for Management (incorporated herein by reference to Exhibit 10.56 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2006, FileNo. 1-12387). | |||
+ | 10.21 | — | Form of First Amendment to the Tenneco Inc. Supplemental Retirement Plan (incorporated herein by reference to Exhibit 10.57 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2006, FileNo. 1-12387). | |||
+ | 10.22 | — | ||||
Tenneco Inc. Change in Control Severance Benefit Plan for Key Executives, as Amended and Restated effective December 12, 2007 (incorporated herein by reference to Exhibit 10.61 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2008, FileNo. 1-12387). | ||||||
+ | 10.23 | — | ||||
Excess Benefit Plan, including Supplements for Gregg M. Sherrill and Kenneth R. Trammell (incorporated herein by reference to Exhibit 10.65 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2008, FileNo. 1-12387). | ||||||
+ | 10.24 | — | Amendment No. 2 to Change in Control Severance Benefit Plan for Key Executives (incorporated herein by reference to Exhibit 10.66 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2008, FileNo. 1-12387). | |||
+ | 10.25 | — | Incentive Deferral Plan, as Amended and Restated Effective as of January 1, 2008 (incorporated herein by reference to Exhibit 10.67 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2008, FileNo. 1-12387). | |||
+ | 10.26 | — | Code Section 409A Amendment to 2002 Long-Term Incentive Plan (incorporated herein by reference to Exhibit 10.68 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2008, FileNo. 1-12387). | |||
+10.27 | — | Code Section 409A Amendment to 2006 Long-Term Incentive Plan (incorporated herein by reference to Exhibit 10.69 of the registrant’s Annual Report on Form 10-K for the year ended December 31, 2008, File No. 1-12387). | ||||
+10.28 | — | Code Section 409A to Excess Benefit Plan (incorporated herein by reference to Exhibit 10.70 of the registrant’s Annual Report on Form 10-K for the year ended December 31, 2008, File No. 1-12387). | ||||
+10.29 | — | Code Section 409A Amendment to Supplemental Retirement Plan (incorporated herein by reference to Exhibit 10.71 of the registrant’s Annual Report on Form 10-K for the year ended December 31, 2008, File No. 1-12387). |
148
Exhibit | ||||||
Number | Description | |||||
+10 | .56 | — | Code Section 409A Amendment to 2006 Long-Term Incentive Plan (incorporated herein by reference to Exhibit 10.69 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2008, FileNo. 1-12387). | |||
+10 | .57 | — | Code Section 409A to Excess Benefit Plan (incorporated herein by reference to Exhibit 10.70 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2008, FileNo. 1-12387). | |||
+10 | .58 | — | Code Section 409A Amendment to Supplemental Retirement Plan (incorporated herein by reference to Exhibit 10.71 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2008, FileNo. 1-12387). | |||
+10 | .59 | — | Code Section 409A Amendment to Supplemental Pension Plan for Management (incorporated herein by reference to Exhibit 10.72 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2008, File No. 1-12387). | |||
+10 | .60 | — | Code Section 409A Amendment to Amended and Restated Value Added (“TAVA”) Incentive Compensation Plan (incorporated herein by reference to Exhibit 10.73 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2008, FileNo. 1-12387). | |||
+10 | .61 | — | Code Section 409A Amendment to Letter Agreement between the registrant and Gregg M. Sherrill (incorporated herein by reference to Exhibit 10.74 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2008, FileNo. 1-12387). | |||
+10 | .62 | — | Code Section 409A Amendment to Letter Agreement between the registrant and Hari N. Nair (incorporated herein by reference to Exhibit 10.75 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2008, FileNo. 1-12387). | |||
+10 | .63 | — | Code Section 409A Amendment to Letter Agreement between the registrant and Timothy E. Jackson (incorporated herein by reference to Exhibit 10.76 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2008, FileNo. 1-12387). | |||
10 | .64 | — | Second Amended and Restated Receivables Purchase Agreement, dated as of May 4, 2005, among the registrant, as Servicer, Tenneco Automotive RSA Company, as Seller, Jupiter Securitization Corporation and Liberty Street Funding Corp., as Conduits The Bank of Nova Scotia, JP Morgan Chase Bank, N.A. and the Committed Purchasers from time to time party thereto, and Amendments 1 through 10 thereto (incorporated herein by reference to Exhibit 10.77 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2008, FileNo. 1-12387). | |||
10 | .65 | — | Amendment No. 11, dated as of April 29, 2009, to Second Amended and Restated Receivable Purchase Agreement (incorporated herein by reference to Exhibit 10.1 of the registrant’s Quarterly Report onForm 10-Q for the quarter ended March 31, 2009, FileNo. 1-12387). | |||
+10 | .66 | — | Tenneco Inc. 2006 Long-Term Incentive Plan (as amended and restated effective March 11, 2009) (incorporated herein by reference to Appendix A of the registrant’s proxy statement on Schedule 14A, filed with the Securities and Exchange Commission on March 31, 2009, FileNo. 1-12387). | |||
10 | .67 | — | Amendment No. 12, dated as of June 25, 2009, to Second Amended and Restated Receivable Purchase Agreement (incorporated herein by reference to Exhibit 10.1 of the registrant’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2009, FileNo. 1-12387). | |||
10 | .68 | — | Amendment No. 13, dated as of July 31, 2009, to Second Amended and Restated Receivable Purchase Agreement (incorporated herein by reference to Exhibit 10.2 of the registrant’s Quarterly Report onForm 10-Q for the quarter ended June 30, 2009, FileNo. 1-12387). | |||
10 | .69 | — | Underwriting Agreement, dated November 18, 2009, between Tenneco Inc. and the underwriters named therein (incorporated herein by reference to Exhibit 1.1 of the registrant’s Current Report onForm 8-K filed November 19, 2009, FileNo. 1-12387). | |||
+10 | .70 | — | Amendment No. 2, effective January 15, 2010, to Amended and Restated Tenneco Value Added Incentive Compensation Plan (incorporated herein by reference to Exhibit 10.70 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2009, FileNo. 1-12387). | |||
+10 | .71 | — | Amendment dated December 18, 2009, to Tenneco Inc. Incentive Deferral Plan (incorporated herein by reference to Exhibit 10.71 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2009, FileNo. 1-12387). | |||
+10 | .72 | — | Form of Amendment to Long-Term Performance Unit Award under the 2006 Long-Term Incentive Plan (three year award for2007-2009 period) (incorporated herein by reference to Exhibit 10.72 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2009, FileNo. 1-12387). |
149
Exhibit | ||||||
Number | Description | |||||
+10 | .73 | — | Form of Amendment to Long-Term Performance Unit Award under the 2006 Long-Term Incentive Plan (three year award for2008-2010 period) (incorporated herein by reference to Exhibit 10.73 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2009, FileNo. 1-12387). | |||
10 | .74 | — | Amendment No. 14, dated February 19, 2010, to Second Amended and Restated Receivables Purchase Agreement (incorporated herein by reference to Exhibit 10.74 of the registrant’s Annual Report onForm 10-K for the year ended December 31, 2009, FileNo. 1-12387). | |||
10 | .75 | — | Third Amended and Restated Receivables Purchase Agreement, dated as of March 26, 2010, among Tenneco Automotive RSA Company, as Seller, Tenneco Automotive Operating Company Inc., as Servicer, Falcon Asset Securitization Company LLC and Liberty Street Funding LLC, as Conduits, the Committed Purchasers from time to time party thereto, JPMorgan Chase Bank, N.A., The Bank of Nova Scotia and Wells Fargo Bank, N.A., as Co-Agents and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated herein by reference to Exhibit 10.1 of the registrant’s Current Report onForm 8-K dated as of March 26, 2010, FileNo. 1-12387). | |||
10 | .76 | — | Intercreditor Agreement, dated as of March 26, 2010, among Tenneco Automotive RSA Company, Tenneco Automotive Operating Company Inc., JPMorgan Chase Bank, N.A. and Wells Fargo Bank, N.A. (incorporated herein by reference to Exhibit 10.2 of the registrant’s Current Report onForm 8-K dated as of March 26, 2010, FileNo. 1-12387). | |||
10 | .77 | — | Omnibus Amendment No. 4, dated as of March 26, 2010, to Receivables Sale Agreements, as amended (incorporated herein by reference to Exhibit 10.3 of the registrant’s Current Report onForm 8-K dated as of March 26, 2010, FileNo. 1-12387). | |||
10 | .78 | — | SLOT Receivables Purchase Agreement, dated as of March 26, 2010, among Tenneco Automotive RSA Company, as Seller, Tenneco Automotive Operating Company Inc., as Servicer, and Wells Fargo Bank, N.A., individually and as SLOT Agent (incorporated herein by reference to Exhibit 10.4 of the registrant’s Current Report onForm 8-K dated as of March 26, 2010, FileNo. 1-12387). | |||
10 | .79 | — | Fourth Amended and Restated Performance Undertaking, dated as of March 26, 2010, by the registrant in favor of Tenneco Automotive RSA Company (incorporated herein by reference to Exhibit 10.5 of the registrant’s Current Report onForm 8-K dated as of March 26, 2010, FileNo. 1-12387). | |||
+10 | .80 | — | Form of Tenneco Inc. Three Year Long-Term Performance Unit Award Agreement (incorporated herein by reference to Exhibit 10.1 of the registrant’s Current Report onForm 8-K dated as of March 15, 2010, FileNo. 1-12387). | |||
+10 | .81 | — | Form of Tenneco Inc. 2006 Long-Term Incentive Plan Restricted Stock Award Agreement (incorporated herein by reference to Exhibit 10.1 of the registrant’s Quarterly Report onForm 10-Q for the quarter ended September 30, 2010, FileNo. 1-12387). | |||
+10 | .82 | — | Second Amendment to Tenneco Inc. Incentive Deferral Plan effective as of January 1, 2011 (incorporated herein by reference to Exhibit 10.1 of the registrant’s Quarterly Report onForm 10-Q for the quarter ended September 30, 2010, FileNo. 1-12387). | |||
11 | — | None. | ||||
*12 | — | Computation of Ratio of Earnings to Fixed Charges. | ||||
13 | — | None. | ||||
14 | — | Tenneco Inc. Code of Ethical Conduct for Financial Managers (incorporated herein by reference from Exhibit 99.3 to the registrant’s Annual Report onForm 10-K for the year ended December 31, 2002, FileNo. 1-12387). | ||||
16 | .1 | — | Letter from Deloitte & Touche LLP to the Securities and Exchange Commission dated August 6, 2009 (incorporated herein by reference to Exhibit 10.1 of the registrant’s Current Report onForm 8-K dated August 6, 2009, FileNo. 1-12387). | |||
16 | .2 | — | Letter from Deloitte & Touche LLP to the Securities and Exchange Commission dated March 3, 2010 (incorporated herein by reference to Exhibit 16.1 of the registrant’s Current Report onForm 8-K dated March 3, 2010, FileNo. 1-12387). | |||
18 | — | None. | ||||
*21 | — | List of Subsidiaries of Tenneco Inc. | ||||
22 | — | None. | ||||
*23 | .1 | — | Consent of PricewaterhouseCoopers LLP. |
150
Exhibit Number | Description | |||||||
+10.30 | — | Code Section 409A Amendment to Supplemental Pension Plan for Management (incorporated herein by reference to Exhibit 10.72 of the registrant’s Annual Report on Form 10-K for the year ended December 31, 2008, File No. 1-12387). | ||||||
+10.31 | — | Code Section 409A Amendment to Amended and Restated Value Added (“TAVA”) Incentive Compensation Plan (incorporated herein by reference to Exhibit 10.73 of the registrant’s Annual Report on Form 10-K for the year ended December 31, 2008, File No. 1-12387). | ||||||
+10.32 | — | Tenneco Inc. 2006 Long-Term Incentive Plan (as amended and restated effective March 11, 2009) (incorporated herein by reference to Appendix A of the registrant’s proxy statement on Schedule 14A, filed with the Securities and Exchange Commission on March 31, 2009, File No. 1-12387). | ||||||
+10.33 | — | Amendment No. 2, effective January 15, 2010, to Amended and Restated Tenneco Value Added Incentive Compensation Plan (incorporated herein by reference to Exhibit 10.70 of the registrant’s Annual Report on Form 10-K for the year ended December 31, 2009, File No. 1-12387). | ||||||
+10.34 | — | Amendment dated December 18, 2009, to Tenneco Inc. Incentive Deferral Plan (incorporated herein by reference to Exhibit 10.71 of the registrant’s Annual Report on Form 10-K for the year ended December 31, 2009, File No. 1-12387). | ||||||
+10.35 | — | Form of Tenneco Inc. Three Year Long-Term Performance Unit Award Agreement (incorporated herein by reference to Exhibit 10.1 of the registrant’s Current Report on Form 8-K dated as of March 15, 2010, File No. 1-12387). | ||||||
+10.36 | — | Form of Tenneco Inc. 2006 Long-Term Incentive Plan Restricted Stock Award Agreement (incorporated herein by reference to Exhibit 10.1 of the registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2010, File No. 1-12387). | ||||||
+10.37 | — | Second Amendment to Tenneco Inc. Incentive Deferral Plan effective as of January 1, 2011 (incorporated herein by reference to Exhibit 10.1 of the registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2010, File No. 1-12387). | ||||||
+10.38 | — | First Amendment to Tenneco Inc. Change in Control Severance Benefit Plan for Key Executives, as Amended and Restated effective December 12, 2007 (incorporated herein by reference to Exhibit 10.3 of the registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, File No. 1-12387). | ||||||
+10.39 | — | Form of Restricted Stock Award for Non-Employee Directors under Tenneco Inc. 2006 Long-Term Incentive Plan (incorporated herein by reference to Exhibit 10.1 of the registrant’s Current Report on Form 8-K dated January 18, 2012, File No. 1-12387). | ||||||
+10.40 | — | Form of Restricted Stock Award for Employees under Tenneco Inc. 2006 Long-Term Incentive Plan (incorporated herein by reference to Exhibit 10.2 of the registrant’s Current Report on Form 8-K dated January 18, 2012, File No. 1-12387). | ||||||
+10.41 | — | Form of Non-Qualified Stock Option Agreement for Employees under Tenneco Inc. 2006 Long-Term Incentive Plan (incorporated herein by reference to Exhibit 10.3 of the registrant’s Current Report on Form 8-K dated January 18, 2012, File No. 1-12387). | ||||||
+10.42 | — | Letter Agreement between Tenneco Inc. and Gregg M. Sherrill (incorporated herein by reference to Exhibit 99.2 of the registrant's Current Report on Form 8-K dated as of January 5, 2007. File No. 1-12387). | ||||||
+10.43 | — | Letter Agreement between Tenneco Inc. and Gregg M. Sherrill, dated as of January 15, 2007 (incorporated herein by reference to Exhibit 99.1 of the registrant’s Current Report on Form 8-K dated as of January 15, 2007, File No. 1-12387). | ||||||
+10.44 | — | Code Section 409A Amendment to Letter Agreement between the registrant and Gregg M. Sherrill (incorporated herein by reference to Exhibit 10.74 of the registrant’s Annual Report on Form 10-K for the year ended December 31, 2008, File No. 1-12387). | ||||||
+10.45 | — | Letter Agreement dated January 5, 2007 between registrant and Hari N. Nair (incorporated herein by Exhibit 10.28 of the registrant's Annual Report on Form 10-K for the year ended December 31, 2008, File No. 1-12387). | ||||||
+10.46 | — | Letter Agreement dated January 5, 2007 between the registrant and Hari N. Nair (incorporated herein by reference to Exhibit 10.60 of the registrant’s Annual Report on Form 10-K for the year ended December 31, 2006, File No. 1-12387). | ||||||
+10.47 | — | Code Section 409A Amendment to Letter Agreement between the registrant and Hari N. Nair (incorporated herein by reference to Exhibit 10.75 of the registrant’s Annual Report on Form 10-K for the year ended December 31, 2008, File No. 1-12387). | ||||||
+10.48 | — | General Manager Service Contract, dated as of March 1, 2007, between Heinrich Gillet GmbH and Josep Fornos (incorporated herein by reference from Exhibit 10.87 of the registrant’s Annual Report on Form 10-K for the year ended December 31, 2011, File No. 1-12387). |
Exhibit Number | Description | |
*+10.49 | — | Letter of Understanding, dated as of January 2012, between Tenneco Inc. and Josep Fornos. |
10.50 | ||
10.51 | — | Intercreditor Agreement, dated as of March 26, 2010, among Tenneco Automotive RSA Company, Tenneco Automotive Operating Company Inc., JPMorgan Chase Bank, N.A. and Wells Fargo Bank, N.A. (incorporated herein by reference to Exhibit 10.2 of the registrant’s Current Report on Form 8-K dated as of March 26, 2010, File No. 1-12387). |
10.52 | — | Omnibus Amendment No. 4, dated as of March 26, 2010, to Receivables Sale Agreements, as amended (incorporated herein by reference to Exhibit 10.3 of the registrant’s Current Report on Form 8-K dated as of March 26, 2010, File No. 1-12387). |
10.53 | — | SLOT Receivables Purchase Agreement, dated as of March 26, 2010, among Tenneco Automotive RSA Company, as Seller, Tenneco Automotive Operating Company Inc., as Servicer, and Wells Fargo Bank, N.A., individually and as SLOT Agent (incorporated herein by reference to Exhibit 10.4 of the registrant’s Current Report on Form 8-K dated as of March 26, 2010, File No. 1-12387). |
10.54 | — | Fourth Amended and Restated Performance Undertaking, dated as of March 26, 2010, by the registrant in favor of Tenneco Automotive RSA Company (incorporated herein by reference to Exhibit 10.5 of the registrant’s Current Report on Form 8-K dated as of March 26, 2010, File No. 1-12387). |
10.55 | — | Amendment No. 1 to Third Amended and Restated Receivables Purchase Agreement, dated as of March 25, 2011, among Tenneco Automotive RSA Company, as Seller, Tenneco Automotive Operating Company Inc., as Servicer, Falcon Asset Securitization Company LLC and Liberty Street Funding LLC, as Conduits, the Committed Purchasers from time to time party thereto, JPMorgan Chase Bank, N.A., The Bank of Nova Scotia and Wells Fargo Bank, N.A., as Co-Agents and JPMorgan Chase Bank, N.A., as Administrative Agent (incorporated herein by reference from Exhibit 10.1 of the registrant’s Current Report on Form 8-K dated as of March 29, 2011, File No. 1-12387). |
10.56 | — | Amendment No. 1 to SLOT Receivables Purchase Agreement, dated as of March 25, 2011, among Tenneco Automotive RSA Company, as Seller, Tenneco Automotive Operating Company Inc. as Servicer, and Wells Fargo Bank, N.A., individually and as SLOT Agent (incorporated herein by reference from Exhibit 10.2 of the registrant’s Current Report on Form 8-K dated as of March 29, 2011, File No. 1-12387). |
10.57 | — | Amendment No. 2 to Third Amended and Restated Receivables Purchase Agreement, dated as of March 23, 2012 (incorporated herein by reference from Exhibit 10.1 of the registrant’s Current Report on Form 8-K dated as of March 26, 2012, File No. 1-12387). |
10.58 | — | Amendment No. 2 to SLOT Receivables Purchase Agreement, dated as of March 23, 2012 (incorporated herein by reference from Exhibit 10.2 of the registrant’s Current Report on Form 8-K dated as of March 26, 2012, File No. 1-12387). |
10.59 | — | Omnibus Amendment No. 5 to Receivables Sale Agreements and Amendment No. 3 to Third Amended and Restated Receivables Purchase Agreement, dated March 22, 2013 (incorporated herein by reference from Exhibit 10.1 of the registrant’s Current Report on Form 8-K dated as of March 22, 2013, File No. 1-12387). |
10.60 | — | Amendment No. 3 to SLOT Receivables Purchase Agreement, dated as of March 22, 2013 (incorporated herein by reference from Exhibit 10.2 of the registrant’s Current Report on Form 8-K dated as of March 22, 2013, File No. 1-12387). |
10.61 | — | Amendment No. 4 to SLOT Receivables Purchase Agreement, dated May 22, 2013 (incorporated herein by reference from Exhibit 10.41of the registrant’s Current Report on Form 8-K dated as of May 28, 2013, File No. 1-12387). |
+10.62 | — | Tenneco Inc. Executive Bonus Plan (incorporated herein by reference from Exhibit 99.1 of the registrant’s Current Report on Form 8-K dated as of January 15, 2014, File No. 1-12387). |
+10.63 | — | Amended and Restated Tenneco Inc. 2006 Long-Term Incentive Plan (effective March 18, 2013) (incorporated by reference to Appendix A of the Company’s Proxy Statement on Schedule 14A, filed with the Securities and Exchange Commission on April 3, 2013). |
+10.64 | — | Form of Restricted Stock Award Agreement for Employees under Tenneco Inc. 2006 Long-Term Incentive Plan (awards after May 21, 2013) (incorporated herein by reference from Exhibit 10.3 of the registrant’s Current Report on Form 8-K dated as of May 21, 2013, File No. 1-12387). |
Exhibit Number | Description |
+10.65 | — | Form of Stock Option Award Agreement for Employees under Tenneco Inc. 2006 Long-Term Incentive Plan (awards after May 21, 2013) (incorporated herein by reference from Exhibit 10.4 of the registrant’s Current Report on Form 8-K dated as of May 21, 2013, File No. 1-12387). | ||||
+10.66 | — | Form of Tenneco Inc. Long-Term Performance Unit Award Agreement under Tenneco Inc. 2006 Long-Term Incentive Plan (grants after January 14, 2014) (incorporated herein by reference from Exhibit 99.2 of the registrant’s Current Report on Form 8-K dated as of January 15, 2014, File No. 1-12387). | ||||
11 | — | None. | ||||
*12 | — | Computation of Ratio of Earnings to Fixed Charges. | ||||
13 | — | None. | ||||
14 | — | Tenneco Inc. Code of Ethical Conduct for Financial Managers (incorporated herein by reference from Exhibit 99.3 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2002, File No. 1-12387). | ||||
16 | — | None. | ||||
18 | — | None. | ||||
*21 | — | List of Subsidiaries of Tenneco Inc. | ||||
22 | — | None. | ||||
*23.1 | — | Consent of | ||||
* | 24.1 | — | Powers of Attorney. | |||
* | 31.1 | — | Certification of Gregg M. Sherrill under Section 302 of the Sarbanes-Oxley Act of 2002. | |||
* | 31.2 | — | Certification of Kenneth R. Trammell under Section 302 of the Sarbanes-Oxley Act of 2002. | |||
* | 32.1 | — | Certification of Gregg M. Sherrill and Kenneth R. Trammell under Section 906 of the Sarbanes-Oxley Act of 2002. | |||
33 | — | None. | ||||
34 | — | None. | ||||
35 | — | None. | ||||
99 | — | None. | ||||
100 | — | None. | ||||
101 | — | None. | ||||
*101.INS | — | XBRL Instance Document. | ||||
*101.SCH | — | XBRL Taxonomy Extension Schema Document. | ||||
*101.CAL | — | XBRL Taxonomy Extension Calculation Linkbase Document. | ||||
*101.DEF | — | XBRL Taxonomy Extension Definition Linkbase Document. | ||||
*101.LAB | — | XBRL Taxonomy Extension Label Linkbase Document. | ||||
*101.PRE | — | XBRL Taxonomy Extension Presentation Linkbase Document. |
* | Filed herewith. |
+ | Indicates a management contract or compensatory plan or arrangement. |
151
TENNECO INC. | |
By | / |
Gregg M. Sherrill | |
Chairman and Chief Executive Officer |
Signature | Title | |||
Chairman | ||||
Gregg M. Sherrill | ||||
/S/ KENNETH R. TRAMMELL | Executive Vice President and Chief Financial Officer (principal financial officer) | |||
Kenneth R. Trammell | ||||
* | Vice President and Controller (principal accounting officer) | |||
Paul D. Novas | ||||
* | Director | |||
Thomas C. Freyman | ||||
* | Director | |||
Dennis J. Letham | ||||
* | Director | |||
Hari N. Nair | ||||
* | Director | |||
Roger B. Porter | ||||
* | Director | |||
David B. Price, Jr. | ||||
* | Director | |||
Paul T. Stecko | ||||
* | Director | |||
Jane L. Warner | ||||
*BY: | ||||
/S/ KENNETH R. TRAMMELL | ||||
Attorney in fact |
152