þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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76-0515284
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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500 North Field Drive, Lake Forest, Illinois
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60045
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
þ
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Accelerated filer
¨
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Non-accelerated filer
¨
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Smaller reporting company
¨
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(Do not check if a smaller reporting company)
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Page
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Part I — Financial Information
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Item 1.
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Tenneco Inc. and Consolidated Subsidiaries —
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Item 2.
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Item 3.
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Item 4.
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Part II — Other Information
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Item 1.
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Legal Proceedings
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*
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Item 1A.
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||
Item 2.
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||
Item 3.
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Defaults Upon Senior Securities
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*
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Item 4.
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Mine Safety Disclosures
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*
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Item 5.
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Other Information
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*
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Item 6.
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*
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No response to this item is included herein for the reason that it is inapplicable or the answer to such item is negative.
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•
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general economic, business and market conditions;
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•
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our ability to source and procure needed materials, components and other products and services in accordance with customer demand and at competitive prices;
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•
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the cost and outcome of existing and any future claims, legal proceedings or investigations, including, but not limited to, any of the foregoing arising in connection with the ongoing global antitrust investigation, product performance, product safety or intellectual property rights;
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•
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changes in capital availability or costs, including increases in our cost of borrowing (i.e., interest rate increases), the amount of our debt, our ability to access capital markets at favorable rates, and the credit ratings of our debt;
|
•
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changes in consumer demand, prices and our ability to have our products included on top selling vehicles, including any shifts in consumer preferences away from light trucks, which tend to be higher margin products for our customers and us, to other lower margin vehicles, for which we may or may not have supply arrangements;
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•
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changes in consumer demand for our automotive, commercial or aftermarket products, or changes in automotive and commercial vehicle manufacturers’ production rates and their actual and forecasted requirements for our products due to difficult economic conditions;
|
•
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the overall highly competitive nature of the automobile and commercial vehicle parts industries, and any resultant inability to realize the sales represented by our awarded book of business (which is based on anticipated pricing and volumes over the life of the applicable program);
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•
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the loss of any of our large original equipment manufacturer (“OEM”) customers (on whom we depend for a substantial portion of our revenues), or the loss of market shares by these customers if we are unable to achieve increased sales to other OEMs or any change in customer demand due to delays in the adoption or enforcement of worldwide emissions regulations;
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•
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our ability to successfully execute cash management and other cost reduction plans, and to realize the anticipated benefits from these plans;
|
•
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economic, exchange rate and political conditions in the countries where we operate or sell our products;
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•
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industrywide strikes, labor disruptions at our facilities or any labor or other economic disruptions at any of our significant customers or suppliers or any of our customers’ other suppliers;
|
•
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increases in the costs of raw materials, including our ability to successfully reduce the impact of any such cost increases through materials substitutions, cost reduction initiatives, customer recovery and other methods;
|
•
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the negative impact of fuel price volatility on transportation and logistics costs, raw material costs, discretionary purchases of vehicles or aftermarket products and demand for off-highway equipment;
|
•
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the cyclical nature of the global vehicle industry, including the performance of the global aftermarket sector and the impact of vehicle parts’ longer product lives;
|
•
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costs related to product warranties and other customer satisfaction actions;
|
•
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the failure or breach of our information technology systems, including the consequences of any misappropriation, exposure or corruption of sensitive information stored on such systems and the interruption to our business that such failure or breach may cause;
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•
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the impact of consolidation among vehicle parts suppliers and customers on our ability to compete;
|
•
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changes in distribution channels or competitive conditions in the markets and countries where we operate, including the impact of increasing competition from lower cost, private-label products on our aftermarket business;
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•
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customer acceptance of new products;
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•
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new technologies that reduce the demand for certain of our products or otherwise render them obsolete;
|
•
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our ability to introduce new products and technologies that satisfy customers' needs in a timely fashion;
|
•
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our ability to realize our business strategy of improving operating performance;
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•
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our ability to successfully integrate any acquisitions that we complete and effectively manage our joint ventures and other third-party relationships;
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•
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changes by the Financial Accounting Standards Board or the Securities and Exchange Commission of authoritative generally accepted accounting principles or policies;
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•
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changes in accounting estimates and assumptions, including changes based on additional information;
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•
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any changes by the International Organization for Standardization (ISO) or other such committees in their certification protocols for processes and products, which may have the effect of delaying or hindering our ability to bring new products to market;
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•
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the impact of the extensive, increasing and changing laws and regulations to which we are subject, including environmental laws and regulations, which may result in our incurrence of environmental liabilities in excess of the amount reserved;
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•
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the potential impairment in the carrying value of our long-lived assets and goodwill or our deferred tax assets;
|
•
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potential volatility in our effective tax rate;
|
•
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natural disasters, such as earthquakes and flooding, and any resultant disruptions in the supply or production of goods or services to us or by us or in demand by our customers;
|
•
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acts of war and/or terrorism, as well as actions taken or to be taken by the United States and other governments as a result of further acts or threats of terrorism, and the impact of these acts on economic, financial and social conditions in the countries where we operate; and
|
•
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the timing and occurrence (or non-occurrence) of other transactions, events and circumstances which may be beyond our control.
|
/s/ PricewaterhouseCoopers LLP
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Milwaukee, Wisconsin
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November 4, 2016
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|
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||||||||
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Three Months Ended September 30, 2016
|
|
Three Months Ended September 30, 2015
|
|
Nine Months Ended September 30, 2016
|
|
Nine Months Ended September 30, 2015
|
||||||||
|
(Millions Except Share and Per Share Amounts)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Net sales and operating revenues
|
$
|
2,096
|
|
|
$
|
2,025
|
|
|
$
|
6,444
|
|
|
$
|
6,178
|
|
|
|
|
|
|
|
|
|
||||||||
Costs and expenses
|
|
|
|
|
|
|
|
||||||||
Cost of sales (exclusive of depreciation and amortization shown below)
|
1,741
|
|
|
1,707
|
|
|
5,321
|
|
|
5,157
|
|
||||
Engineering, research, and development
|
41
|
|
|
35
|
|
|
117
|
|
|
114
|
|
||||
Selling, general, and administrative
|
109
|
|
|
113
|
|
|
390
|
|
|
359
|
|
||||
Depreciation and amortization of other intangibles
|
53
|
|
|
53
|
|
|
159
|
|
|
154
|
|
||||
|
1,944
|
|
|
1,908
|
|
|
5,987
|
|
|
5,784
|
|
||||
Other income (expense)
|
|
|
|
|
|
|
|
||||||||
Loss on sale of receivables
|
(2
|
)
|
|
(1
|
)
|
|
(4
|
)
|
|
(3
|
)
|
||||
Other income
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
—
|
|
|
(1
|
)
|
|
(4
|
)
|
|
(3
|
)
|
||||
Earnings before interest expense, income taxes, and noncontrolling interests
|
152
|
|
|
116
|
|
|
453
|
|
|
391
|
|
||||
Interest expense
|
24
|
|
|
16
|
|
|
76
|
|
|
49
|
|
||||
Earnings before income taxes and noncontrolling interests
|
128
|
|
|
100
|
|
|
377
|
|
|
342
|
|
||||
Income tax expense (benefit)
|
(69
|
)
|
|
34
|
|
|
5
|
|
|
122
|
|
||||
Net income
|
197
|
|
|
66
|
|
|
372
|
|
|
220
|
|
||||
Less: Net income attributable to noncontrolling interests
|
17
|
|
|
14
|
|
|
49
|
|
|
41
|
|
||||
Net income attributable to Tenneco Inc.
|
$
|
180
|
|
|
$
|
52
|
|
|
$
|
323
|
|
|
$
|
179
|
|
Earnings per share
|
|
|
|
|
|
|
|
||||||||
Weighted average shares of common stock outstanding —
|
|
|
|
|
|
|
|
||||||||
Basic
|
55,679,969
|
|
|
59,587,628
|
|
|
56,511,838
|
|
|
60,428,806
|
|
||||
Diluted
|
56,165,709
|
|
|
60,020,995
|
|
|
56,958,447
|
|
|
60,946,772
|
|
||||
Basic earnings per share of common stock
|
$
|
3.24
|
|
|
$
|
0.89
|
|
|
5.72
|
|
|
2.97
|
|
||
Diluted earnings per share of common stock
|
$
|
3.21
|
|
|
$
|
0.88
|
|
|
5.67
|
|
|
2.94
|
|
|
Three Months Ended September 30, 2016
|
||||||||||||||||||||||
|
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
|
|
|
$
|
180
|
|
|
|
|
$
|
17
|
|
|
|
|
$
|
197
|
|
||||||
Accumulated Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cumulative Translation Adjustment
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance July 1
|
$
|
(294
|
)
|
|
|
|
$
|
(2
|
)
|
|
|
|
$
|
(296
|
)
|
|
|
||||||
Translation of foreign currency statements
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||
Balance September 30
|
(293
|
)
|
|
|
|
(2
|
)
|
|
|
|
(295
|
)
|
|
|
|||||||||
Additional Liability for Pension and Postretirement Benefits
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance July 1
|
(361
|
)
|
|
|
|
—
|
|
|
|
|
(361
|
)
|
|
|
|||||||||
Additional Liability for Pension and Postretirement Benefits, net of tax
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
||||||
Balance September 30
|
(357
|
)
|
|
|
|
—
|
|
|
|
|
(357
|
)
|
|
|
|||||||||
Balance September 30
|
$
|
(650
|
)
|
|
|
|
$
|
(2
|
)
|
|
|
|
$
|
(652
|
)
|
|
|
||||||
Other Comprehensive Income
|
|
|
5
|
|
|
|
|
—
|
|
|
|
|
5
|
|
|||||||||
Comprehensive Income
|
|
|
$
|
185
|
|
|
|
|
$
|
17
|
|
|
|
|
$
|
202
|
|
|
Three Months Ended September 30, 2015
|
||||||||||||||||||||||
|
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
|
|
|
$
|
52
|
|
|
|
|
$
|
14
|
|
|
|
|
$
|
66
|
|
||||||
Accumulated Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cumulative Translation Adjustment
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance July 1
|
$
|
(216
|
)
|
|
|
|
$
|
3
|
|
|
|
|
$
|
(213
|
)
|
|
|
||||||
Translation of foreign currency statements
|
(45
|
)
|
|
(45
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
(47
|
)
|
|
(47
|
)
|
||||||
Balance September 30
|
(261
|
)
|
|
|
|
1
|
|
|
|
|
(260
|
)
|
|
|
|||||||||
Additional Liability for Pension and Postretirement Benefits
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance July 1
|
(374
|
)
|
|
|
|
—
|
|
|
|
|
(374
|
)
|
|
|
|||||||||
Additional Liability for Pension and Postretirement Benefits, net of tax
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
||||||
Balance September 30
|
(370
|
)
|
|
|
|
—
|
|
|
|
|
(370
|
)
|
|
|
|||||||||
Balance September 30
|
$
|
(631
|
)
|
|
|
|
$
|
1
|
|
|
|
|
$
|
(630
|
)
|
|
|
||||||
Other Comprehensive Loss
|
|
|
(41
|
)
|
|
|
|
(2
|
)
|
|
|
|
(43
|
)
|
|||||||||
Comprehensive Income
|
|
|
$
|
11
|
|
|
|
|
$
|
12
|
|
|
|
|
$
|
23
|
|
|
Nine Months Ended September 30, 2016
|
||||||||||||||||||||||
|
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
|
|
|
$
|
323
|
|
|
|
|
$
|
49
|
|
|
|
|
$
|
372
|
|
||||||
Accumulated Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cumulative Translation Adjustment
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance January 1
|
$
|
(297
|
)
|
|
|
|
$
|
(1
|
)
|
|
|
|
$
|
(298
|
)
|
|
|
||||||
Translation of foreign currency statements
|
4
|
|
|
4
|
|
|
(1
|
)
|
|
(1
|
)
|
|
3
|
|
|
3
|
|
||||||
Balance September 30
|
(293
|
)
|
|
|
|
|
(2
|
)
|
|
|
|
|
(295
|
)
|
|
|
|||||||
Additional Liability for Pension and Postretirement Benefits
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance January 1
|
(368
|
)
|
|
|
|
—
|
|
|
|
|
(368
|
)
|
|
|
|||||||||
Additional Liability for Pension and Postretirement Benefits, net of tax
|
11
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
11
|
|
||||||
Balance September 30
|
(357
|
)
|
|
|
|
—
|
|
|
|
|
(357
|
)
|
|
|
|||||||||
Balance September 30
|
$
|
(650
|
)
|
|
|
|
$
|
(2
|
)
|
|
|
|
$
|
(652
|
)
|
|
|
||||||
Other Comprehensive Income (Loss)
|
|
|
15
|
|
|
|
|
(1
|
)
|
|
|
|
14
|
|
|||||||||
Comprehensive Income
|
|
|
$
|
338
|
|
|
|
|
$
|
48
|
|
|
|
|
$
|
386
|
|
|
Nine Months Ended September 30, 2015
|
||||||||||||||||||||||
|
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
|
|
|
$
|
179
|
|
|
|
|
$
|
41
|
|
|
|
|
$
|
220
|
|
||||||
Accumulated Other Comprehensive Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cumulative Translation Adjustment
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance January 1
|
$
|
(166
|
)
|
|
|
|
$
|
3
|
|
|
|
|
$
|
(163
|
)
|
|
|
||||||
Translation of foreign currency statements
|
(95
|
)
|
|
(95
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
(97
|
)
|
|
(97
|
)
|
||||||
Balance September 30
|
(261
|
)
|
|
|
|
1
|
|
|
|
|
(260
|
)
|
|
|
|||||||||
Additional Liability for Pension and Postretirement Benefits
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance January 1
|
(379
|
)
|
|
|
|
—
|
|
|
|
|
(379
|
)
|
|
|
|||||||||
Additional Liability for Pension and Postretirement Benefits, net of tax
|
9
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
||||||
Balance September 30
|
(370
|
)
|
|
|
|
—
|
|
|
|
|
(370
|
)
|
|
|
|||||||||
Balance September 30
|
$
|
(631
|
)
|
|
|
|
$
|
1
|
|
|
|
|
$
|
(630
|
)
|
|
|
||||||
Other Comprehensive Loss
|
|
|
(86
|
)
|
|
|
|
(2
|
)
|
|
|
|
(88
|
)
|
|||||||||
Comprehensive Income
|
|
|
$
|
93
|
|
|
|
|
$
|
39
|
|
|
|
|
$
|
132
|
|
|
September 30,
2016 |
|
December 31,
2015 |
||||
|
(Millions)
|
||||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
324
|
|
|
$
|
287
|
|
Restricted cash
|
2
|
|
|
1
|
|
||
Receivables —
|
|
|
|
||||
Customer notes and accounts, net
|
1,276
|
|
|
1,102
|
|
||
Other
|
22
|
|
|
10
|
|
||
Inventories —
|
|
|
|
||||
Finished goods
|
275
|
|
|
257
|
|
||
Work in process
|
270
|
|
|
233
|
|
||
Raw materials
|
145
|
|
|
135
|
|
||
Materials and supplies
|
63
|
|
|
57
|
|
||
|
|
|
|
|
|
||
Prepayments and other
|
300
|
|
|
229
|
|
||
Total current assets
|
2,677
|
|
|
2,311
|
|
||
Other assets:
|
|
|
|
||||
Long-term receivables, net
|
10
|
|
|
13
|
|
||
Goodwill
|
58
|
|
|
60
|
|
||
Intangibles, net
|
20
|
|
|
22
|
|
||
Deferred income taxes
|
218
|
|
|
218
|
|
||
Other
|
101
|
|
|
100
|
|
||
|
407
|
|
|
413
|
|
||
Plant, property, and equipment, at cost
|
3,584
|
|
|
3,418
|
|
||
Less — Accumulated depreciation and amortization
|
(2,262
|
)
|
|
(2,175
|
)
|
||
|
1,322
|
|
|
1,243
|
|
||
Total Assets
|
$
|
4,406
|
|
|
$
|
3,967
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Short-term debt (including current maturities of long-term debt)
|
$
|
124
|
|
|
$
|
86
|
|
Accounts payable
|
1,457
|
|
|
1,376
|
|
||
Accrued taxes
|
47
|
|
|
37
|
|
||
Accrued interest
|
13
|
|
|
4
|
|
||
Accrued liabilities
|
263
|
|
|
250
|
|
||
Other
|
41
|
|
|
41
|
|
||
Total current liabilities
|
1,945
|
|
|
1,794
|
|
||
Long-term debt
|
1,310
|
|
|
1,124
|
|
||
Deferred income taxes
|
8
|
|
|
7
|
|
||
Postretirement benefits
|
300
|
|
|
318
|
|
||
Deferred credits and other liabilities
|
133
|
|
|
206
|
|
||
Commitments and contingencies
|
|
|
|
||||
Total liabilities
|
3,696
|
|
|
3,449
|
|
||
Redeemable noncontrolling interests
|
35
|
|
|
43
|
|
||
Tenneco Inc. Shareholders’ equity:
|
|
|
|
||||
Common stock
|
1
|
|
|
1
|
|
||
Premium on common stock and other capital surplus
|
3,091
|
|
|
3,081
|
|
||
Accumulated other comprehensive loss
|
(650
|
)
|
|
(665
|
)
|
||
Retained earnings (accumulated deficit)
|
(1,125
|
)
|
|
(1,448
|
)
|
||
|
1,317
|
|
|
969
|
|
||
Less — Shares held as treasury stock, at cost
|
682
|
|
|
536
|
|
||
Total Tenneco Inc. shareholders’ equity
|
635
|
|
|
433
|
|
||
Noncontrolling interests
|
40
|
|
|
42
|
|
||
Total equity
|
675
|
|
|
475
|
|
||
Total liabilities, redeemable noncontrolling interests and equity
|
$
|
4,406
|
|
|
$
|
3,967
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended September 30, 2016
|
|
Three Months Ended September 30, 2015
|
|
Nine Months Ended September 30, 2016
|
|
Nine Months Ended September 30, 2015
|
||||||||
|
(Millions)
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Operating Activities
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
197
|
|
|
$
|
66
|
|
|
$
|
372
|
|
|
$
|
220
|
|
Adjustments to reconcile net income to cash provided by operating activities —
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization of other intangibles
|
53
|
|
|
53
|
|
|
159
|
|
|
154
|
|
||||
Deferred income taxes
|
(86
|
)
|
|
12
|
|
|
(73
|
)
|
|
(1
|
)
|
||||
Stock-based compensation
|
3
|
|
|
4
|
|
|
13
|
|
|
13
|
|
||||
Loss on sale of assets
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
||||
Changes in components of working capital —
|
|
|
|
|
|
|
|
||||||||
(Increase) decrease in receivables
|
(10
|
)
|
|
(17
|
)
|
|
(189
|
)
|
|
(237
|
)
|
||||
(Increase) decrease in inventories
|
(12
|
)
|
|
(19
|
)
|
|
(61
|
)
|
|
(65
|
)
|
||||
(Increase) decrease in prepayments and other current assets
|
(34
|
)
|
|
(1
|
)
|
|
(69
|
)
|
|
(4
|
)
|
||||
Increase (decrease) in payables
|
(7
|
)
|
|
7
|
|
|
55
|
|
|
70
|
|
||||
Increase (decrease) in accrued taxes
|
1
|
|
|
(29
|
)
|
|
10
|
|
|
(7
|
)
|
||||
Increase (decrease) in accrued interest
|
9
|
|
|
12
|
|
|
9
|
|
|
13
|
|
||||
Increase (decrease) in other current liabilities
|
10
|
|
|
13
|
|
|
(7
|
)
|
|
31
|
|
||||
Changes in long-term assets
|
1
|
|
|
—
|
|
|
5
|
|
|
1
|
|
||||
Changes in long-term liabilities
|
11
|
|
|
2
|
|
|
9
|
|
|
—
|
|
||||
Other
|
2
|
|
|
2
|
|
|
4
|
|
|
(2
|
)
|
||||
Net cash provided by operating activities
|
139
|
|
|
106
|
|
|
239
|
|
|
188
|
|
||||
Investing Activities
|
|
|
|
|
|
|
|
||||||||
Proceeds from sale of assets
|
1
|
|
|
1
|
|
|
4
|
|
|
3
|
|
||||
Cash payments for plant, property, and equipment
|
(74
|
)
|
|
(71
|
)
|
|
(213
|
)
|
|
(221
|
)
|
||||
Cash payments for software related intangible assets
|
(6
|
)
|
|
(5
|
)
|
|
(15
|
)
|
|
(13
|
)
|
||||
Changes in restricted cash
|
1
|
|
|
—
|
|
|
(1
|
)
|
|
1
|
|
||||
Net cash used by investing activities
|
(78
|
)
|
|
(75
|
)
|
|
(225
|
)
|
|
(230
|
)
|
||||
Financing Activities
|
|
|
|
|
|
|
|
||||||||
Issuance of common shares
|
7
|
|
|
—
|
|
|
11
|
|
|
5
|
|
||||
Tax impact from stock-based compensation
|
(11
|
)
|
|
(5
|
)
|
|
(10
|
)
|
|
1
|
|
||||
Retirement of long-term debt
|
(179
|
)
|
|
(4
|
)
|
|
(527
|
)
|
|
(25
|
)
|
||||
Issuance of long-term debt
|
2
|
|
|
1
|
|
|
508
|
|
|
1
|
|
||||
Debt issuance cost of long-term debt
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
(1
|
)
|
||||
Purchase of common stock under the share repurchase program
|
(89
|
)
|
|
(114
|
)
|
|
(146
|
)
|
|
(158
|
)
|
||||
Net increase (decrease) in bank overdrafts
|
(1
|
)
|
|
(10
|
)
|
|
4
|
|
|
(21
|
)
|
||||
Net increase in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivable
|
198
|
|
|
138
|
|
|
223
|
|
|
223
|
|
||||
Net increase (decrease) in short-term borrowings secured by accounts receivable
|
50
|
|
|
(20
|
)
|
|
20
|
|
|
30
|
|
||||
Distributions to noncontrolling interest partners
|
(28
|
)
|
|
(22
|
)
|
|
(55
|
)
|
|
(44
|
)
|
||||
Net cash provided (used) by financing activities
|
(51
|
)
|
|
(36
|
)
|
|
20
|
|
|
11
|
|
||||
Effect of foreign exchange rate changes on cash and cash equivalents
|
3
|
|
|
(25
|
)
|
|
3
|
|
|
(31
|
)
|
||||
Increase (decrease) in cash and cash equivalents
|
13
|
|
|
(30
|
)
|
|
37
|
|
|
(62
|
)
|
||||
Cash and cash equivalents, July 1 and January 1, respectively
|
311
|
|
|
250
|
|
|
287
|
|
|
282
|
|
||||
Cash and cash equivalents, September 30 (Note)
|
$
|
324
|
|
|
$
|
220
|
|
|
$
|
324
|
|
|
$
|
220
|
|
Supplemental Cash Flow Information
|
|
|
|
|
|
|
|
||||||||
Cash paid during the period for interest (net of interest capitalized)
|
$
|
14
|
|
|
$
|
5
|
|
|
$
|
62
|
|
|
$
|
38
|
|
Cash paid during the period for income taxes (net of refunds)
|
30
|
|
|
44
|
|
|
88
|
|
|
79
|
|
||||
Non-cash Investing and Financing Activities
|
|
|
|
|
|
|
|
||||||||
Period end balance of trade payables for plant, property, and equipment
|
$
|
51
|
|
|
$
|
37
|
|
|
$
|
51
|
|
|
$
|
37
|
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2016
|
|
2015
|
||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
||||||
|
(Millions Except Share Amounts)
|
||||||||||||
Tenneco Inc. Shareholders:
|
|
|
|
|
|
|
|
||||||
Common Stock
|
|
|
|
|
|
|
|
||||||
Balance January 1
|
65,067,132
|
|
|
$
|
1
|
|
|
64,454,248
|
|
|
$
|
1
|
|
Issued pursuant to benefit plans
|
313,332
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Stock options exercised
|
383,981
|
|
|
—
|
|
|
239,490
|
|
|
—
|
|
||
Balance September 30
|
65,764,445
|
|
|
1
|
|
|
64,693,738
|
|
|
1
|
|
||
Premium on Common Stock and Other Capital Surplus
|
|
|
|
|
|
|
|
||||||
Balance January 1
|
|
|
3,081
|
|
|
|
|
3,059
|
|
||||
Premium on common stock issued pursuant to benefit plans
|
|
|
10
|
|
|
|
|
15
|
|
||||
Balance September 30
|
|
|
3,091
|
|
|
|
|
3,074
|
|
||||
Accumulated Other Comprehensive Loss
|
|
|
|
|
|
|
|
||||||
Balance January 1
|
|
|
(665
|
)
|
|
|
|
(545
|
)
|
||||
Other comprehensive income (loss)
|
|
|
15
|
|
|
|
|
(86
|
)
|
||||
Balance September 30
|
|
|
(650
|
)
|
|
|
|
(631
|
)
|
||||
Retained Earnings (Accumulated Deficit)
|
|
|
|
|
|
|
|
||||||
Balance January 1
|
|
|
(1,448
|
)
|
|
|
|
(1,695
|
)
|
||||
Net income attributable to Tenneco Inc.
|
|
|
323
|
|
|
|
|
179
|
|
||||
Balance September 30
|
|
|
(1,125
|
)
|
|
|
|
(1,516
|
)
|
||||
Less — Common Stock Held as Treasury Stock, at Cost
|
|
|
|
|
|
|
|
||||||
Balance January 1
|
7,473,325
|
|
|
536
|
|
|
3,244,692
|
|
|
323
|
|
||
Purchase of common stock through stock repurchase program
|
2,783,064
|
|
|
146
|
|
|
3,104,763
|
|
|
158
|
|
||
Balance September 30
|
10,256,389
|
|
|
682
|
|
|
6,349,455
|
|
|
481
|
|
||
Total Tenneco Inc. shareholders’ equity
|
|
|
$
|
635
|
|
|
|
|
$
|
447
|
|
||
Noncontrolling Interests:
|
|
|
|
|
|
|
|
||||||
Balance January 1
|
|
|
$
|
42
|
|
|
|
|
$
|
41
|
|
||
Net income
|
|
|
21
|
|
|
|
|
16
|
|
||||
Other comprehensive loss
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
||||
Dividends declared
|
|
|
(22
|
)
|
|
|
|
(20
|
)
|
||||
Balance September 30
|
|
|
$
|
40
|
|
|
|
|
$
|
36
|
|
||
Total equity
|
|
|
$
|
675
|
|
|
|
|
$
|
483
|
|
(1)
|
Consolidation and Presentation
|
(2)
|
Financial Instruments
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||
|
Net Carrying
Amount
|
|
Fair
Value
|
|
Net Carrying
Amount
|
|
Fair
Value
|
||||||||
|
(Millions)
|
||||||||||||||
Long-term debt (including current maturities)
|
$
|
1,311
|
|
|
$
|
1,344
|
|
|
$
|
1,125
|
|
|
$
|
1,160
|
|
Instruments with off-balance sheet risk:
|
|
|
|
|
|
|
|
||||||||
Foreign exchange forward contracts:
|
|
|
|
|
|
|
|
||||||||
Asset derivative contracts
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
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
in Foreign Currency
|
|
|
|
(Millions)
|
|
Australian dollars
|
—Purchase
|
3
|
|
British pounds
|
—Purchase
|
47
|
|
|
—Sell
|
(45
|
)
|
Canadian dollars
|
—Sell
|
(2
|
)
|
European euro
|
—Purchase
|
57
|
|
|
—Sell
|
(121
|
)
|
Japanese yen
|
—Purchase
|
677
|
|
|
—Sell
|
(240
|
)
|
Mexican peso
|
—Purchase
|
280
|
|
South African rand
|
—Purchase
|
137
|
|
|
—Sell
|
(184
|
)
|
U.S. dollars
|
—Purchase
|
193
|
|
|
—Sell
|
(138
|
)
|
(3)
|
Long-Term Debt and Financing Arrangements
|
|
Quarter Ended
|
||||||||||||||||
|
September 30, 2016
|
|
June 30, 2016
|
|
March 31, 2016
|
||||||||||||
|
Required
|
|
Actual
|
|
Required
|
|
Actual
|
|
Required
|
|
Actual
|
||||||
Leverage Ratio (maximum)
|
3.50
|
|
|
1.52
|
|
|
3.50
|
|
|
1.45
|
|
|
3.50
|
|
|
1.54
|
|
Interest Coverage Ratio (minimum)
|
2.75
|
|
|
14.26
|
|
|
2.75
|
|
|
13.93
|
|
|
2.75
|
|
|
13.90
|
|
(4)
|
Income Taxes
|
(5)
|
Accounts Receivable Securitization
|
(6)
|
Restructuring and Other Charges
|
|
December 31,
2015 Restructuring Reserve |
|
2016
Expenses |
|
2016
Cash Payments |
|
Impact of Exchange Rates
|
|
September 30, 2016
Restructuring Reserve |
|||||||
|
(Millions)
|
|||||||||||||||
Employee Severance, Termination Benefits and Other Related Costs
|
|
$30
|
|
|
21
|
|
|
(35
|
)
|
|
1
|
|
|
|
$17
|
|
(7)
|
Environmental Matters, Legal Proceedings and Product Warranties
|
|
Nine Months Ended September 30,
|
||||||
|
2016
|
|
2015
|
||||
|
(Millions)
|
||||||
Beginning Balance January 1,
|
$
|
23
|
|
|
$
|
26
|
|
Accruals related to product warranties
|
6
|
|
|
11
|
|
||
Reductions for payments made
|
(10
|
)
|
|
(13
|
)
|
||
Ending Balance September 30,
|
$
|
19
|
|
|
$
|
24
|
|
(8)
|
Earnings Per Share
|
|
Three Months Ended September 30, 2016
|
|
Three Months Ended September 30, 2015
|
|
Nine Months Ended September 30, 2016
|
|
Nine Months Ended September 30, 2015
|
||||||||
|
(Millions Except Share and Per Share Amounts)
|
||||||||||||||
Basic earnings per share —
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Tenneco Inc.
|
$
|
180
|
|
|
$
|
52
|
|
|
$
|
323
|
|
|
$
|
179
|
|
Weighted Average shares of common stock outstanding
|
55,679,969
|
|
|
59,587,628
|
|
|
56,511,838
|
|
|
60,428,806
|
|
||||
Earnings per share of common stock
|
$
|
3.24
|
|
|
$
|
0.89
|
|
|
$
|
5.72
|
|
|
$
|
2.97
|
|
Diluted earnings per share —
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Tenneco Inc.
|
$
|
180
|
|
|
$
|
52
|
|
|
$
|
323
|
|
|
$
|
179
|
|
Weighted Average shares of common stock outstanding
|
55,679,969
|
|
|
59,587,628
|
|
|
56,511,838
|
|
|
60,428,806
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||||||
Restricted stock
|
207,707
|
|
|
76,203
|
|
|
144,145
|
|
|
91,615
|
|
||||
Stock options
|
278,033
|
|
|
357,164
|
|
|
302,464
|
|
|
426,351
|
|
||||
Weighted Average shares of common stock outstanding including dilutive securities
|
56,165,709
|
|
|
60,020,995
|
|
|
56,958,447
|
|
|
60,946,772
|
|
||||
Earnings per share of common stock
|
$
|
3.21
|
|
|
$
|
0.88
|
|
|
$
|
5.67
|
|
|
$
|
2.94
|
|
(9)
|
Common Stock
|
|
Nine Months Ended September 30, 2016
|
|||||||||||
|
Shares
Under
Option
|
|
Weighted Avg.
Exercise
Prices
|
|
Weighted Avg.
Remaining
Life in Years
|
|
Aggregate
Intrinsic
Value
|
|||||
|
|
|
|
|
|
|
(Millions)
|
|||||
Outstanding Stock Options
|
|
|
|
|
|
|
|
|||||
Outstanding, January 1, 2016
|
1,144,719
|
|
|
$
|
34.69
|
|
|
3.7
|
|
$
|
19
|
|
Exercised
|
(19,192
|
)
|
|
9.31
|
|
|
|
|
1
|
|
||
Outstanding, March 31, 2016
|
1,125,527
|
|
|
$
|
35.12
|
|
|
3.5
|
|
$
|
12
|
|
Forfeited
|
(788
|
)
|
|
51.88
|
|
|
|
|
|
|||
Exercised
|
(183,774
|
)
|
|
23.07
|
|
|
|
|
5
|
|
||
Outstanding, June 30, 2016
|
940,965
|
|
|
$
|
37.46
|
|
|
3.1
|
|
$
|
14
|
|
Forfeited
|
(3,183
|
)
|
|
56.23
|
|
|
|
|
|
|||
Exercised
|
(178,455
|
)
|
|
30.17
|
|
|
|
|
4
|
|
||
Outstanding, September 30, 2016
|
759,327
|
|
|
$
|
39.13
|
|
|
2.8
|
|
$
|
12
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2016
|
|||||
|
Shares
|
|
Weighted Avg.
Grant Date
Fair Value
|
|||
Nonvested Restricted Shares
|
|
|
|
|||
Nonvested balance at January 1, 2016
|
496,842
|
|
|
$
|
51.65
|
|
Granted
|
347,398
|
|
|
35.98
|
|
|
Vested
|
(156,109
|
)
|
|
46.50
|
|
|
Nonvested balance at March 31, 2016
|
688,131
|
|
|
$
|
44.90
|
|
Vested
|
(20,221
|
)
|
|
42.32
|
|
|
Forfeited
|
(32,192
|
)
|
|
53.91
|
|
|
Nonvested balance at June 30, 2016
|
635,718
|
|
|
$
|
44.42
|
|
Granted
|
3,368
|
|
|
55.02
|
|
|
Vested
|
(23,705
|
)
|
|
37.37
|
|
|
Forfeited
|
(3,485
|
)
|
|
53.34
|
|
|
Nonvested balance at September 30, 2016
|
611,896
|
|
|
$
|
44.70
|
|
(10)
|
Pension Plans, Postretirement and Other Employee Benefits
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||
|
Pension
|
|
Postretirement
|
||||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||
|
US
|
|
Foreign
|
|
US
|
|
Foreign
|
|
US
|
|
US
|
||||||||||||
|
(Millions)
|
||||||||||||||||||||||
Service cost — benefits earned during the period
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
4
|
|
|
4
|
|
|
4
|
|
|
2
|
|
|
1
|
|
|
|
|
||||||
Expected return on plan assets
|
(6
|
)
|
|
(5
|
)
|
|
(5
|
)
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
||||||
Net amortization:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Actuarial loss
|
2
|
|
|
1
|
|
|
1
|
|
|
3
|
|
|
2
|
|
|
2
|
|
||||||
Prior service cost (credit)
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
(1
|
)
|
||||||
Net pension and postretirement costs
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
2
|
|
|
$
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
|
Pension
|
|
Postretirement
|
||||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||
|
US
|
|
Foreign
|
|
US
|
|
Foreign
|
|
US
|
|
US
|
||||||||||||
|
(Millions)
|
||||||||||||||||||||||
Service cost — benefits earned during the period
|
$
|
1
|
|
|
$
|
6
|
|
|
$
|
1
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
13
|
|
|
11
|
|
|
13
|
|
|
11
|
|
|
4
|
|
|
4
|
|
||||||
Expected return on plan assets
|
(18
|
)
|
|
(15
|
)
|
|
(17
|
)
|
|
(16
|
)
|
|
—
|
|
|
—
|
|
||||||
Net amortization:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Actuarial loss
|
6
|
|
|
5
|
|
|
5
|
|
|
6
|
|
|
4
|
|
|
4
|
|
||||||
Prior service cost (credit)
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
(3
|
)
|
||||||
Net pension and postretirement costs
|
$
|
2
|
|
|
$
|
8
|
|
|
$
|
2
|
|
|
$
|
9
|
|
|
$
|
7
|
|
|
$
|
5
|
|
|
Three Months Ended September 30,
|
||||||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||||||
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amortization of actuarial loss included in net periodic pension and postretirement cost
|
5
|
|
|
(1
|
)
|
|
4
|
|
|
6
|
|
|
(2
|
)
|
|
4
|
|
||||||
Other comprehensive income – pension benefits
|
$
|
5
|
|
|
$
|
(1
|
)
|
|
$
|
4
|
|
|
$
|
6
|
|
|
$
|
(2
|
)
|
|
$
|
4
|
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||||||
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amortization of prior service cost included in net periodic pension and postretirement cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
Amortization of actuarial loss included in net periodic pension and postretirement cost
|
15
|
|
|
(4
|
)
|
|
11
|
|
|
15
|
|
|
(4
|
)
|
|
11
|
|
||||||
Other comprehensive income – pension benefits
|
$
|
15
|
|
|
$
|
(4
|
)
|
|
$
|
11
|
|
|
$
|
13
|
|
|
$
|
(4
|
)
|
|
$
|
9
|
|
(11)
|
New Accounting Pronouncements
|
(12)
|
Segment Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
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 September 30, 2016 and for the Three Months Ended September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Revenues from external customers
|
$
|
716
|
|
|
$
|
487
|
|
|
$
|
257
|
|
|
$
|
306
|
|
|
$
|
258
|
|
|
$
|
72
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,096
|
|
Intersegment revenues
|
4
|
|
|
24
|
|
|
1
|
|
|
2
|
|
|
6
|
|
|
12
|
|
|
—
|
|
|
(49
|
)
|
|
—
|
|
|||||||||
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests
|
44
|
|
|
30
|
|
|
37
|
|
|
37
|
|
|
11
|
|
|
15
|
|
|
(22
|
)
|
|
—
|
|
|
152
|
|
|||||||||
Total assets
|
1,390
|
|
|
842
|
|
|
593
|
|
|
727
|
|
|
564
|
|
|
243
|
|
|
—
|
|
|
47
|
|
|
4,406
|
|
|||||||||
At September 30, 2015 and for the Three Months Ended September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Revenues from external customers
|
720
|
|
|
453
|
|
|
235
|
|
|
330
|
|
|
236
|
|
|
51
|
|
|
—
|
|
|
—
|
|
|
2,025
|
|
|||||||||
Intersegment revenues
|
4
|
|
|
27
|
|
|
—
|
|
|
3
|
|
|
7
|
|
|
12
|
|
|
—
|
|
|
(53
|
)
|
|
—
|
|
|||||||||
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests
|
58
|
|
|
14
|
|
|
31
|
|
|
39
|
|
|
(21
|
)
|
|
9
|
|
|
(14
|
)
|
|
—
|
|
|
116
|
|
|||||||||
Total assets
|
1,292
|
|
|
775
|
|
|
532
|
|
|
768
|
|
|
557
|
|
|
200
|
|
|
—
|
|
|
33
|
|
|
4,157
|
|
|||||||||
At September 30, 2016 and for the Nine Months Ended September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Revenues from external customers
|
$
|
2,252
|
|
|
$
|
1,498
|
|
|
$
|
777
|
|
|
$
|
952
|
|
|
$
|
771
|
|
|
$
|
194
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,444
|
|
Intersegment revenues
|
9
|
|
|
70
|
|
|
2
|
|
|
6
|
|
|
21
|
|
|
35
|
|
|
—
|
|
|
(143
|
)
|
|
—
|
|
|||||||||
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests
|
172
|
|
|
75
|
|
|
109
|
|
|
127
|
|
|
19
|
|
|
38
|
|
|
(87
|
)
|
|
—
|
|
|
453
|
|
|||||||||
Total assets
|
1,390
|
|
|
842
|
|
|
593
|
|
|
727
|
|
|
564
|
|
|
243
|
|
|
—
|
|
|
47
|
|
|
4,406
|
|
|||||||||
At September 30, 2015 and for the Nine Months Ended September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Revenues from external customers
|
2,150
|
|
|
1,381
|
|
|
743
|
|
|
1,021
|
|
|
718
|
|
|
165
|
|
|
—
|
|
|
—
|
|
|
6,178
|
|
|||||||||
Intersegment revenues
|
11
|
|
|
79
|
|
|
—
|
|
|
8
|
|
|
22
|
|
|
37
|
|
|
—
|
|
|
(157
|
)
|
|
—
|
|
|||||||||
EBIT, Earnings (loss) before interest expense, income taxes, and noncontrolling interests
|
179
|
|
|
36
|
|
|
86
|
|
|
125
|
|
|
(1
|
)
|
|
27
|
|
|
(61
|
)
|
|
—
|
|
|
391
|
|
|||||||||
Total assets
|
1,292
|
|
|
775
|
|
|
532
|
|
|
768
|
|
|
557
|
|
|
200
|
|
|
—
|
|
|
33
|
|
|
4,157
|
|
(13)
|
Supplemental Guarantor Condensed Consolidating Financial Statements
|
|
Three Months Ended September 30, 2016
|
||||||||||||||||||
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Tenneco Inc.
(Parent
Company)
|
|
Reclass &
Elims
|
|
Consolidated
|
||||||||||
|
(Millions)
|
||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales and operating revenues —
|
|
|
|
|
|
|
|
|
|
||||||||||
External
|
$
|
928
|
|
|
$
|
1,168
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,096
|
|
Affiliated companies
|
134
|
|
|
183
|
|
|
—
|
|
|
(317
|
)
|
|
—
|
|
|||||
|
1,062
|
|
|
1,351
|
|
|
—
|
|
|
(317
|
)
|
|
2,096
|
|
|||||
Costs and expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of sales (exclusive of depreciation and amortization shown below)
|
903
|
|
|
1,155
|
|
|
—
|
|
|
(317
|
)
|
|
1,741
|
|
|||||
Engineering, research, and development
|
20
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
41
|
|
|||||
Selling, general, and administrative
|
48
|
|
|
61
|
|
|
—
|
|
|
—
|
|
|
109
|
|
|||||
Depreciation and amortization of other intangibles
|
23
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
53
|
|
|||||
|
994
|
|
|
1,267
|
|
|
—
|
|
|
(317
|
)
|
|
1,944
|
|
|||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss on sale of receivables
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||||
Other income (expense)
|
(7
|
)
|
|
9
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
|
(8
|
)
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Earnings (loss) before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies
|
60
|
|
|
92
|
|
|
—
|
|
|
—
|
|
|
152
|
|
|||||
Interest expense —
|
|
|
|
|
|
|
|
|
|
||||||||||
External (net of interest capitalized)
|
(1
|
)
|
|
1
|
|
|
24
|
|
|
—
|
|
|
24
|
|
|||||
Affiliated companies (net of interest income)
|
(3
|
)
|
|
2
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||
Earnings (loss) before income taxes, noncontrolling interests,
and equity in net income from affiliated companies
|
64
|
|
|
89
|
|
|
(25
|
)
|
|
—
|
|
|
128
|
|
|||||
Income tax expense (benefit)
|
(107
|
)
|
|
38
|
|
|
—
|
|
|
—
|
|
|
(69
|
)
|
|||||
Equity in net income (loss) from affiliated companies
|
34
|
|
|
—
|
|
|
205
|
|
|
(239
|
)
|
|
—
|
|
|||||
Net income (loss)
|
205
|
|
|
51
|
|
|
180
|
|
|
(239
|
)
|
|
197
|
|
|||||
Less: Net income attributable to noncontrolling interests
|
—
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|||||
Net income (loss) attributable to Tenneco Inc.
|
$
|
205
|
|
|
$
|
34
|
|
|
$
|
180
|
|
|
$
|
(239
|
)
|
|
$
|
180
|
|
Comprehensive income (loss) attributable to Tenneco Inc.
|
$
|
205
|
|
|
$
|
34
|
|
|
$
|
185
|
|
|
$
|
(239
|
)
|
|
$
|
185
|
|
|
Three Months Ended September 30, 2015
|
||||||||||||||||||
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Tenneco Inc.
(Parent
Company)
|
|
Reclass &
Elims
|
|
Consolidated
|
||||||||||
|
(Millions)
|
||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales and operating revenues —
|
|
|
|
|
|
|
|
|
|
||||||||||
External
|
$
|
936
|
|
|
$
|
1,089
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,025
|
|
Affiliated companies
|
102
|
|
|
135
|
|
|
—
|
|
|
(237
|
)
|
|
—
|
|
|||||
|
1,038
|
|
|
1,224
|
|
|
—
|
|
|
(237
|
)
|
|
2,025
|
|
|||||
Costs and expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of sales (exclusive of depreciation and amortization shown below)
|
866
|
|
|
1,078
|
|
|
—
|
|
|
(237
|
)
|
|
1,707
|
|
|||||
Engineering, research, and development
|
18
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|||||
Selling, general, and administrative
|
41
|
|
|
71
|
|
|
1
|
|
|
—
|
|
|
113
|
|
|||||
Depreciation and amortization of other intangibles
|
22
|
|
|
31
|
|
|
—
|
|
|
—
|
|
|
53
|
|
|||||
|
947
|
|
|
1,197
|
|
|
1
|
|
|
(237
|
)
|
|
1,908
|
|
|||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss on sale of receivables
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Other income (expense)
|
10
|
|
|
8
|
|
|
—
|
|
|
(18
|
)
|
|
—
|
|
|||||
|
10
|
|
|
7
|
|
|
—
|
|
|
(18
|
)
|
|
(1
|
)
|
|||||
Earnings (loss) before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies
|
101
|
|
|
34
|
|
|
(1
|
)
|
|
(18
|
)
|
|
116
|
|
|||||
Interest expense —
|
|
|
|
|
|
|
|
|
|
||||||||||
External (net of interest capitalized)
|
(1
|
)
|
|
—
|
|
|
17
|
|
|
—
|
|
|
16
|
|
|||||
Affiliated companies (net of interest income)
|
19
|
|
|
(19
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies
|
83
|
|
|
53
|
|
|
(18
|
)
|
|
(18
|
)
|
|
100
|
|
|||||
Income tax expense
|
22
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|||||
Equity in net income (loss) from affiliated companies
|
26
|
|
|
—
|
|
|
70
|
|
|
(96
|
)
|
|
—
|
|
|||||
Net income (loss)
|
87
|
|
|
41
|
|
|
52
|
|
|
(114
|
)
|
|
66
|
|
|||||
Less: Net income attributable to noncontrolling interests
|
—
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|||||
Net income (loss) attributable to Tenneco Inc.
|
$
|
87
|
|
|
$
|
27
|
|
|
$
|
52
|
|
|
$
|
(114
|
)
|
|
$
|
52
|
|
Comprehensive income (loss) attributable to Tenneco Inc.
|
$
|
87
|
|
|
$
|
27
|
|
|
$
|
11
|
|
|
$
|
(114
|
)
|
|
$
|
11
|
|
|
Nine Months Ended September 30, 2016
|
||||||||||||||||||
|
Guarantor
Subsidiaries |
|
Nonguarantor
Subsidiaries |
|
Tenneco Inc.
(Parent Company) |
|
Reclass &
Elims |
|
Consolidated
|
||||||||||
|
(Millions)
|
||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales and operating revenues —
|
|
|
|
|
|
|
|
|
|
||||||||||
External
|
$
|
2,929
|
|
|
$
|
3,515
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,444
|
|
Affiliated companies
|
389
|
|
|
569
|
|
|
—
|
|
|
(958
|
)
|
|
—
|
|
|||||
|
3,318
|
|
|
4,084
|
|
|
—
|
|
|
(958
|
)
|
|
6,444
|
|
|||||
Costs and expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of sales (exclusive of depreciation and amortization shown below)
|
2,797
|
|
|
3,482
|
|
|
—
|
|
|
(958
|
)
|
|
5,321
|
|
|||||
Engineering, research, and development
|
59
|
|
|
58
|
|
|
—
|
|
|
—
|
|
|
117
|
|
|||||
Selling, general, and administrative
|
174
|
|
|
215
|
|
|
1
|
|
|
—
|
|
|
390
|
|
|||||
Depreciation and amortization of other intangibles
|
65
|
|
|
94
|
|
|
—
|
|
|
—
|
|
|
159
|
|
|||||
|
3,095
|
|
|
3,849
|
|
|
1
|
|
|
(958
|
)
|
|
5,987
|
|
|||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss on sale of receivables
|
(2
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|||||
Other income (expense)
|
(6
|
)
|
|
21
|
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
|||||
|
(8
|
)
|
|
19
|
|
|
—
|
|
|
(15
|
)
|
|
(4
|
)
|
|||||
Earnings (loss) before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies
|
215
|
|
|
254
|
|
|
(1
|
)
|
|
(15
|
)
|
|
453
|
|
|||||
Interest expense —
|
|
|
|
|
|
|
|
|
|
||||||||||
External (net of interest capitalized)
|
(1
|
)
|
|
3
|
|
|
74
|
|
|
—
|
|
|
76
|
|
|||||
Affiliated companies (net of interest income)
|
(9
|
)
|
|
6
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|||||
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies
|
225
|
|
|
245
|
|
|
(78
|
)
|
|
(15
|
)
|
|
377
|
|
|||||
Income tax expense (benefit)
|
(70
|
)
|
|
75
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|||||
Equity in net income (loss) from affiliated companies
|
121
|
|
|
—
|
|
|
401
|
|
|
(522
|
)
|
|
—
|
|
|||||
Net income (loss)
|
416
|
|
|
170
|
|
|
323
|
|
|
(537
|
)
|
|
372
|
|
|||||
Less: Net income attributable to noncontrolling interests
|
—
|
|
|
49
|
|
|
—
|
|
|
—
|
|
|
49
|
|
|||||
Net income (loss) attributable to Tenneco Inc.
|
$
|
416
|
|
|
$
|
121
|
|
|
$
|
323
|
|
|
$
|
(537
|
)
|
|
$
|
323
|
|
Comprehensive income (loss) attributable to Tenneco Inc.
|
$
|
416
|
|
|
$
|
121
|
|
|
$
|
338
|
|
|
$
|
(537
|
)
|
|
$
|
338
|
|
|
Nine Months Ended September 30, 2015
|
||||||||||||||||||
|
Guarantor
Subsidiaries |
|
Nonguarantor
Subsidiaries |
|
Tenneco Inc.
(Parent Company) |
|
Reclass &
Elims |
|
Consolidated
|
||||||||||
|
(Millions)
|
||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales and operating revenues —
|
|
|
|
|
|
|
|
|
|
||||||||||
External
|
$
|
2,817
|
|
|
$
|
3,361
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,178
|
|
Affiliated companies
|
313
|
|
|
423
|
|
|
—
|
|
|
(736
|
)
|
|
—
|
|
|||||
|
3,130
|
|
|
3,784
|
|
|
—
|
|
|
(736
|
)
|
|
6,178
|
|
|||||
Costs and expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of sales (exclusive of depreciation and amortization shown below)
|
2,609
|
|
|
3,284
|
|
|
—
|
|
|
(736
|
)
|
|
5,157
|
|
|||||
Engineering, research, and development
|
59
|
|
|
55
|
|
|
—
|
|
|
—
|
|
|
114
|
|
|||||
Selling, general, and administrative
|
137
|
|
|
219
|
|
|
3
|
|
|
—
|
|
|
359
|
|
|||||
Depreciation and amortization of other intangibles
|
66
|
|
|
88
|
|
|
—
|
|
|
—
|
|
|
154
|
|
|||||
|
2,871
|
|
|
3,646
|
|
|
3
|
|
|
(736
|
)
|
|
5,784
|
|
|||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss on sale of receivables
|
(1
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||||
Other income (expense)
|
37
|
|
|
11
|
|
|
—
|
|
|
(48
|
)
|
|
—
|
|
|||||
|
36
|
|
|
9
|
|
|
—
|
|
|
(48
|
)
|
|
(3
|
)
|
|||||
Earnings (loss) before interest expense, income taxes, noncontrolling interests, and equity in net income from affiliated companies
|
295
|
|
|
147
|
|
|
(3
|
)
|
|
(48
|
)
|
|
391
|
|
|||||
Interest expense —
|
|
|
|
|
|
|
|
|
|
||||||||||
External (net of interest capitalized)
|
(2
|
)
|
|
2
|
|
|
49
|
|
|
—
|
|
|
49
|
|
|||||
Affiliated companies (net of interest income)
|
56
|
|
|
(57
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||
Earnings (loss) before income taxes, noncontrolling interests, and equity in net income from affiliated companies
|
241
|
|
|
202
|
|
|
(53
|
)
|
|
(48
|
)
|
|
342
|
|
|||||
Income tax expense
|
83
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
122
|
|
|||||
Equity in net income (loss) from affiliated companies
|
115
|
|
|
—
|
|
|
232
|
|
|
(347
|
)
|
|
—
|
|
|||||
Net income (loss)
|
273
|
|
|
163
|
|
|
179
|
|
|
(395
|
)
|
|
220
|
|
|||||
Less: Net income attributable to noncontrolling interests
|
—
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
41
|
|
|||||
Net income (loss) attributable to Tenneco Inc.
|
$
|
273
|
|
|
$
|
122
|
|
|
$
|
179
|
|
|
$
|
(395
|
)
|
|
$
|
179
|
|
Comprehensive income (loss) attributable to Tenneco Inc.
|
$
|
273
|
|
|
$
|
122
|
|
|
$
|
93
|
|
|
$
|
(395
|
)
|
|
$
|
93
|
|
|
September 30, 2016
|
||||||||||||||||||
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Tenneco Inc.
(Parent
Company)
|
|
Reclass &
Elims
|
|
Consolidated
|
||||||||||
|
(Millions)
|
||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
324
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
324
|
|
Restricted cash
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Receivables, net
|
407
|
|
|
1,381
|
|
|
—
|
|
|
(490
|
)
|
|
1,298
|
|
|||||
Inventories
|
364
|
|
|
389
|
|
|
—
|
|
|
—
|
|
|
753
|
|
|||||
Prepayments and other
|
107
|
|
|
193
|
|
|
—
|
|
|
—
|
|
|
300
|
|
|||||
Total current assets
|
878
|
|
|
2,289
|
|
|
—
|
|
|
(490
|
)
|
|
2,677
|
|
|||||
Other assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment in affiliated companies
|
1,149
|
|
|
—
|
|
|
1,245
|
|
|
(2,394
|
)
|
|
—
|
|
|||||
Notes and advances receivable from affiliates
|
949
|
|
|
15,714
|
|
|
4,792
|
|
|
(21,455
|
)
|
|
—
|
|
|||||
Long-term receivables, net
|
9
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|||||
Goodwill
|
22
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
58
|
|
|||||
Intangibles, net
|
8
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|||||
Deferred income taxes
|
55
|
|
|
22
|
|
|
141
|
|
|
—
|
|
|
218
|
|
|||||
Other
|
44
|
|
|
48
|
|
|
9
|
|
|
—
|
|
|
101
|
|
|||||
|
2,236
|
|
|
15,833
|
|
|
6,187
|
|
|
(23,849
|
)
|
|
407
|
|
|||||
Plant, property, and equipment, at cost
|
1,331
|
|
|
2,253
|
|
|
—
|
|
|
—
|
|
|
3,584
|
|
|||||
Less — Accumulated depreciation and amortization
|
(880
|
)
|
|
(1,382
|
)
|
|
—
|
|
|
—
|
|
|
(2,262
|
)
|
|||||
|
451
|
|
|
871
|
|
|
—
|
|
|
—
|
|
|
1,322
|
|
|||||
Total assets
|
$
|
3,565
|
|
|
$
|
18,993
|
|
|
$
|
6,187
|
|
|
$
|
(24,339
|
)
|
|
$
|
4,406
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term debt (including current maturities of long-term debt)
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term debt — non-affiliated
|
$
|
—
|
|
|
$
|
109
|
|
|
$
|
15
|
|
|
$
|
—
|
|
|
$
|
124
|
|
Short-term debt — affiliated
|
97
|
|
|
211
|
|
|
—
|
|
|
(308
|
)
|
|
—
|
|
|||||
Accounts payable
|
577
|
|
|
997
|
|
|
—
|
|
|
(117
|
)
|
|
1,457
|
|
|||||
Accrued taxes
|
13
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
47
|
|
|||||
Other
|
120
|
|
|
250
|
|
|
12
|
|
|
(65
|
)
|
|
317
|
|
|||||
Total current liabilities
|
807
|
|
|
1,601
|
|
|
27
|
|
|
(490
|
)
|
|
1,945
|
|
|||||
Long-term debt — non-affiliated
|
—
|
|
|
15
|
|
|
1,295
|
|
|
—
|
|
|
1,310
|
|
|||||
Long-term debt — affiliated
|
1,564
|
|
|
15,661
|
|
|
4,230
|
|
|
(21,455
|
)
|
|
—
|
|
|||||
Deferred income taxes
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|||||
Postretirement benefits and other liabilities
|
358
|
|
|
75
|
|
|
—
|
|
|
—
|
|
|
433
|
|
|||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total liabilities
|
2,729
|
|
|
17,360
|
|
|
5,552
|
|
|
(21,945
|
)
|
|
3,696
|
|
|||||
Redeemable noncontrolling interests
|
—
|
|
|
35
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|||||
Tenneco Inc. shareholders’ equity
|
836
|
|
|
1,558
|
|
|
635
|
|
|
(2,394
|
)
|
|
635
|
|
|||||
Noncontrolling interests
|
—
|
|
|
40
|
|
|
—
|
|
|
—
|
|
|
40
|
|
|||||
Total equity
|
836
|
|
|
1,598
|
|
|
635
|
|
|
(2,394
|
)
|
|
675
|
|
|||||
Total liabilities, redeemable noncontrolling interests and equity
|
$
|
3,565
|
|
|
$
|
18,993
|
|
|
$
|
6,187
|
|
|
$
|
(24,339
|
)
|
|
$
|
4,406
|
|
|
December 31, 2015
|
||||||||||||||||||
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Tenneco Inc.
(Parent
Company)
|
|
Reclass &
Elims
|
|
Consolidated
|
||||||||||
|
(Millions)
|
||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
2
|
|
|
$
|
285
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
287
|
|
Restricted cash
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Receivables, net
|
299
|
|
|
1,241
|
|
|
—
|
|
|
(428
|
)
|
|
1,112
|
|
|||||
Inventories
|
333
|
|
|
349
|
|
|
—
|
|
|
—
|
|
|
682
|
|
|||||
Prepayments and other
|
67
|
|
|
162
|
|
|
—
|
|
|
—
|
|
|
229
|
|
|||||
Total current assets
|
701
|
|
|
2,038
|
|
|
—
|
|
|
(428
|
)
|
|
2,311
|
|
|||||
Other assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment in affiliated companies
|
1,146
|
|
|
—
|
|
|
893
|
|
|
(2,039
|
)
|
|
—
|
|
|||||
Notes and advances receivable from affiliates
|
938
|
|
|
13,291
|
|
|
4,788
|
|
|
(19,017
|
)
|
|
—
|
|
|||||
Long-term receivables, net
|
11
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|||||
Goodwill
|
22
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
60
|
|
|||||
Intangibles, net
|
9
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|||||
Deferred income taxes
|
122
|
|
|
28
|
|
|
68
|
|
|
—
|
|
|
218
|
|
|||||
Other
|
42
|
|
|
47
|
|
|
11
|
|
|
—
|
|
|
100
|
|
|||||
|
2,290
|
|
|
13,419
|
|
|
5,760
|
|
|
(21,056
|
)
|
|
413
|
|
|||||
Plant, property, and equipment, at cost
|
1,281
|
|
|
2,137
|
|
|
—
|
|
|
—
|
|
|
3,418
|
|
|||||
Less — Accumulated depreciation and amortization
|
(851
|
)
|
|
(1,324
|
)
|
|
—
|
|
|
—
|
|
|
(2,175
|
)
|
|||||
|
430
|
|
|
813
|
|
|
—
|
|
|
—
|
|
|
1,243
|
|
|||||
Total assets
|
$
|
3,421
|
|
|
$
|
16,270
|
|
|
$
|
5,760
|
|
|
$
|
(21,484
|
)
|
|
$
|
3,967
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term debt (including current maturities of long-term debt)
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term debt — non-affiliated
|
$
|
—
|
|
|
$
|
73
|
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
86
|
|
Short-term debt — affiliated
|
164
|
|
|
147
|
|
|
—
|
|
|
(311
|
)
|
|
—
|
|
|||||
Accounts payable
|
484
|
|
|
955
|
|
|
—
|
|
|
(63
|
)
|
|
1,376
|
|
|||||
Accrued taxes
|
6
|
|
|
31
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|||||
Other
|
125
|
|
|
221
|
|
|
3
|
|
|
(54
|
)
|
|
295
|
|
|||||
Total current liabilities
|
779
|
|
|
1,427
|
|
|
16
|
|
|
(428
|
)
|
|
1,794
|
|
|||||
Long-term debt — non-affiliated
|
—
|
|
|
21
|
|
|
1,103
|
|
|
—
|
|
|
1,124
|
|
|||||
Long-term debt — affiliated
|
1,583
|
|
|
13,226
|
|
|
4,208
|
|
|
(19,017
|
)
|
|
—
|
|
|||||
Deferred income taxes
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|||||
Postretirement benefits and other liabilities
|
424
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
524
|
|
|||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
||||||||||
Total liabilities
|
2,786
|
|
|
14,781
|
|
|
5,327
|
|
|
(19,445
|
)
|
|
3,449
|
|
|||||
Redeemable noncontrolling interests
|
—
|
|
|
43
|
|
|
—
|
|
|
—
|
|
|
43
|
|
|||||
Tenneco Inc. shareholders’ equity
|
635
|
|
|
1,404
|
|
|
433
|
|
|
(2,039
|
)
|
|
433
|
|
|||||
Noncontrolling interests
|
—
|
|
|
42
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|||||
Total equity
|
635
|
|
|
1,446
|
|
|
433
|
|
|
(2,039
|
)
|
|
475
|
|
|||||
Total liabilities, redeemable noncontrolling interests and equity
|
$
|
3,421
|
|
|
$
|
16,270
|
|
|
$
|
5,760
|
|
|
$
|
(21,484
|
)
|
|
$
|
3,967
|
|
|
Three Months Ended September 30, 2016
|
||||||||||||||||||
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Tenneco Inc.
(Parent
Company)
|
|
Reclass &
Elims
|
|
Consolidated
|
||||||||||
|
(Millions)
|
||||||||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided (used) by operating activities
|
$
|
170
|
|
|
$
|
(17
|
)
|
|
$
|
(10
|
)
|
|
$
|
(4
|
)
|
|
$
|
139
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from sale of assets
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Cash payments for plant, property, and equipment
|
(29
|
)
|
|
(45
|
)
|
|
—
|
|
|
—
|
|
|
(74
|
)
|
|||||
Cash payments for software related intangible assets
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|||||
Changes in restricted cash
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Net cash used by investing activities
|
(34
|
)
|
|
(44
|
)
|
|
—
|
|
|
—
|
|
|
(78
|
)
|
|||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Issuance of common shares
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|||||
Tax impact from stock-based compensation
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(11
|
)
|
|||||
Retirement of long-term debt
|
—
|
|
|
—
|
|
|
(179
|
)
|
|
—
|
|
|
(179
|
)
|
|||||
Issuance of long-term debt
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Purchase of common stock under the share repurchase program
|
—
|
|
|
—
|
|
|
(89
|
)
|
|
—
|
|
|
(89
|
)
|
|||||
Net decrease in bank overdrafts
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Net increase in revolver borrowings and short-term debt excluding current maturities of long-term debt
|
—
|
|
|
46
|
|
|
152
|
|
|
—
|
|
|
198
|
|
|||||
Net increase in short-term borrowings secured by accounts receivables
|
—
|
|
|
—
|
|
|
50
|
|
|
—
|
|
|
50
|
|
|||||
Intercompany dividend payments and net increase (decrease) in intercompany obligations
|
(137
|
)
|
|
54
|
|
|
79
|
|
|
4
|
|
|
—
|
|
|||||
Distributions to noncontrolling interest partners
|
—
|
|
|
(28
|
)
|
|
—
|
|
|
—
|
|
|
(28
|
)
|
|||||
Net cash provided (used) by financing activities
|
(137
|
)
|
|
73
|
|
|
9
|
|
|
4
|
|
|
(51
|
)
|
|||||
Effect of foreign exchange rate changes on cash and cash equivalents
|
(1
|
)
|
|
3
|
|
|
1
|
|
|
—
|
|
|
3
|
|
|||||
Increase (decrease) in cash and cash equivalents
|
(2
|
)
|
|
15
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|||||
Cash and cash equivalents, July 1
|
2
|
|
|
309
|
|
|
—
|
|
|
—
|
|
|
311
|
|
|||||
Cash and cash equivalents, September 30 (Note)
|
$
|
—
|
|
|
$
|
324
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
324
|
|
Note:
|
Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase.
|
|
Three Months Ended September 30, 2015
|
||||||||||||||||||
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Tenneco Inc.
(Parent
Company)
|
|
Reclass &
Elims
|
|
Consolidated
|
||||||||||
|
(Millions)
|
||||||||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided (used) by operating activities
|
$
|
17
|
|
|
$
|
114
|
|
|
$
|
4
|
|
|
$
|
(29
|
)
|
|
$
|
106
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from sale of assets
|
(1
|
)
|
|
2
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Cash payments for plant, property, and equipment
|
(36
|
)
|
|
(35
|
)
|
|
—
|
|
|
—
|
|
|
(71
|
)
|
|||||
Cash payments for software related intangible assets
|
(2
|
)
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|||||
Net cash used by investing activities
|
(39
|
)
|
|
(36
|
)
|
|
—
|
|
|
—
|
|
|
(75
|
)
|
|||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Tax benefit from stock-based compensation
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|||||
Retirement of long-term debt
|
—
|
|
|
(1
|
)
|
|
(3
|
)
|
|
—
|
|
|
(4
|
)
|
|||||
Issuance of long-term debt
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Purchase of common stock under the share repurchase program
|
—
|
|
|
—
|
|
|
(114
|
)
|
|
—
|
|
|
(114
|
)
|
|||||
Net decrease in bank overdrafts
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|||||
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivables
|
—
|
|
|
(29
|
)
|
|
167
|
|
|
—
|
|
|
138
|
|
|||||
Net decrease in short-term borrowings secured by accounts receivable
|
—
|
|
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
(20
|
)
|
|||||
Intercompany dividend payments and net increase (decrease) in intercompany obligations
|
20
|
|
|
(20
|
)
|
|
(29
|
)
|
|
29
|
|
|
—
|
|
|||||
Distributions to noncontrolling interest partners
|
—
|
|
|
(22
|
)
|
|
—
|
|
|
—
|
|
|
(22
|
)
|
|||||
Net cash provided (used) by financing activities
|
20
|
|
|
(81
|
)
|
|
(4
|
)
|
|
29
|
|
|
(36
|
)
|
|||||
Effect of foreign exchange rate changes on cash and cash equivalents
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
|||||
Decrease in cash and cash equivalents
|
(2
|
)
|
|
(28
|
)
|
|
—
|
|
|
—
|
|
|
(30
|
)
|
|||||
Cash and cash equivalents, July 1
|
4
|
|
|
246
|
|
|
—
|
|
|
—
|
|
|
250
|
|
|||||
Cash and cash equivalents, September 30 (Note)
|
$
|
2
|
|
|
$
|
218
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
220
|
|
Note:
|
Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase.
|
|
Nine Months Ended September 30, 2016
|
||||||||||||||||||
|
Guarantor
Subsidiaries |
|
Nonguarantor
Subsidiaries |
|
Tenneco Inc.
(Parent Company) |
|
Reclass
& Elims |
|
Consolidated
|
||||||||||
|
(Millions)
|
||||||||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided (used) by operating activities
|
$
|
113
|
|
|
$
|
187
|
|
|
$
|
(46
|
)
|
|
$
|
(15
|
)
|
|
$
|
239
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from sale of assets
|
1
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
Cash payments for plant, property, and equipment
|
(72
|
)
|
|
(141
|
)
|
|
—
|
|
|
—
|
|
|
(213
|
)
|
|||||
Cash payments for software related intangible assets
|
(10
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|||||
Changes in restricted cash
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Net cash used by investing activities
|
(81
|
)
|
|
(144
|
)
|
|
—
|
|
|
—
|
|
|
(225
|
)
|
|||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Issuance of common shares
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
|||||
Tax impact from stock-based compensation
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
|||||
Retirement of long-term debt
|
—
|
|
|
(16
|
)
|
|
(511
|
)
|
|
—
|
|
|
(527
|
)
|
|||||
Issuance of long-term debt
|
—
|
|
|
8
|
|
|
500
|
|
|
—
|
|
|
508
|
|
|||||
Debt issuance cost of long-term debt
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
|||||
Purchase of common stock under the share repurchase program
|
—
|
|
|
—
|
|
|
(146
|
)
|
|
—
|
|
|
(146
|
)
|
|||||
Net increase in bank overdrafts
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
Net increase in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivables
|
—
|
|
|
36
|
|
|
187
|
|
|
—
|
|
|
223
|
|
|||||
Net increase in short-term borrowings secured by accounts receivables
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
20
|
|
|||||
Intercompany dividend payments and net increase (decrease) in intercompany obligations
|
(34
|
)
|
|
16
|
|
|
3
|
|
|
15
|
|
|
—
|
|
|||||
Distributions to noncontrolling interest partners
|
—
|
|
|
(55
|
)
|
|
—
|
|
|
—
|
|
|
(55
|
)
|
|||||
Net cash provided (used) by financing activities
|
(34
|
)
|
|
(7
|
)
|
|
46
|
|
|
15
|
|
|
20
|
|
|||||
Effect of foreign exchange rate changes on cash and cash equivalents
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Increase (decrease) in cash and cash equivalents
|
(2
|
)
|
|
39
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|||||
Cash and cash equivalents, January 1
|
2
|
|
|
285
|
|
|
—
|
|
|
—
|
|
|
287
|
|
|||||
Cash and cash equivalents, September 30 (Note)
|
$
|
—
|
|
|
$
|
324
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
324
|
|
|
|
Note:
|
Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase.
|
|
Nine Months Ended September 30, 2015
|
||||||||||||||||||
|
Guarantor
Subsidiaries |
|
Nonguarantor
Subsidiaries |
|
Tenneco Inc.
(Parent Company) |
|
Reclass
& Elims |
|
Consolidated
|
||||||||||
|
(Millions)
|
||||||||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided (used) by operating activities
|
$
|
61
|
|
|
$
|
202
|
|
|
$
|
(28
|
)
|
|
$
|
(47
|
)
|
|
$
|
188
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from sale of assets
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Cash payments for plant, property, and equipment
|
(93
|
)
|
|
(128
|
)
|
|
—
|
|
|
—
|
|
|
(221
|
)
|
|||||
Cash payments for software related intangible assets
|
(7
|
)
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|||||
Changes in restricted cash
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Net cash used by investing activities
|
(100
|
)
|
|
(130
|
)
|
|
—
|
|
|
—
|
|
|
(230
|
)
|
|||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Issuance of common shares
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|||||
Tax benefit from stock-based compensation
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
Retirement of long-term debt
|
—
|
|
|
(14
|
)
|
|
(11
|
)
|
|
—
|
|
|
(25
|
)
|
|||||
Issuance of long-term debt
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Debt issuance cost of long-term debt
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||||
Purchase of common stock under the share repurchase program
|
—
|
|
|
—
|
|
|
(158
|
)
|
|
—
|
|
|
(158
|
)
|
|||||
Net decrease in bank overdrafts
|
—
|
|
|
(21
|
)
|
|
—
|
|
|
—
|
|
|
(21
|
)
|
|||||
Net increase in revolver borrowings and short-term debt excluding current maturities of long-term debt and short-term borrowings secured by accounts receivables
|
—
|
|
|
30
|
|
|
193
|
|
|
—
|
|
|
223
|
|
|||||
Net increase in short-term borrowings secured by accounts receivables
|
—
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|
30
|
|
|||||
Intercompany dividend payments and net increase (decrease) in intercompany obligations
|
31
|
|
|
(47
|
)
|
|
(31
|
)
|
|
47
|
|
|
—
|
|
|||||
Distributions to noncontrolling interest partners
|
—
|
|
|
(44
|
)
|
|
—
|
|
|
—
|
|
|
(44
|
)
|
|||||
Net cash provided (used) by financing activities
|
31
|
|
|
(95
|
)
|
|
28
|
|
|
47
|
|
|
11
|
|
|||||
Effect of foreign exchange rate changes on cash and cash equivalents
|
—
|
|
|
(31
|
)
|
|
—
|
|
|
—
|
|
|
(31
|
)
|
|||||
Decrease in cash and cash equivalents
|
(8
|
)
|
|
(54
|
)
|
|
—
|
|
|
—
|
|
|
(62
|
)
|
|||||
Cash and cash equivalents, January 1
|
10
|
|
|
272
|
|
|
—
|
|
|
—
|
|
|
282
|
|
|||||
Cash and cash equivalents, September 30 (Note)
|
$
|
2
|
|
|
$
|
218
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
220
|
|
|
|
Note:
|
Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase.
|
Quarter ended September 30, 2015
|
$
|
1,707
|
|
Volume and mix
|
119
|
|
|
Material
|
(31
|
)
|
|
Currency exchange rates
|
(38
|
)
|
|
Restructuring
|
(28
|
)
|
|
Other Costs
|
12
|
|
|
Quarter ended September 30, 2016
|
$
|
1,741
|
|
Nine months ended September 30, 2015
|
$
|
5,157
|
|
Volume and mix
|
425
|
|
|
Material
|
(107
|
)
|
|
Currency exchange rates
|
(136
|
)
|
|
Restructuring
|
(34
|
)
|
|
Other Costs
|
16
|
|
|
Nine months ended September 30, 2016
|
$
|
5,321
|
|
|
Three Months Ended September 30, 2016
|
||||||||||||||||||
|
Revenues
|
|
Substrate Sales
|
|
Value-add Revenues
|
|
Currency Impact on Value-add Revenues
|
|
Value-add Revenues excluding Currency
|
||||||||||
|
(Millions)
|
||||||||||||||||||
Clean Air Division
|
|
|
|
|
|
|
|
|
|
||||||||||
North America
|
$
|
716
|
|
|
$
|
248
|
|
|
$
|
468
|
|
|
$
|
—
|
|
|
$
|
468
|
|
Europe, South America & India
|
487
|
|
|
181
|
|
|
306
|
|
|
(11
|
)
|
|
317
|
|
|||||
Asia Pacific
|
257
|
|
|
55
|
|
|
202
|
|
|
(8
|
)
|
|
210
|
|
|||||
Total Clean Air Division
|
1,460
|
|
|
484
|
|
|
976
|
|
|
(19
|
)
|
|
995
|
|
|||||
Ride Performance Division
|
|
|
|
|
|
|
|
|
|
||||||||||
North America
|
306
|
|
|
—
|
|
|
306
|
|
|
(2
|
)
|
|
308
|
|
|||||
Europe, South America & India
|
258
|
|
|
—
|
|
|
258
|
|
|
(7
|
)
|
|
265
|
|
|||||
Asia Pacific
|
72
|
|
|
—
|
|
|
72
|
|
|
(3
|
)
|
|
75
|
|
|||||
Total Ride Performance Division
|
636
|
|
|
—
|
|
|
636
|
|
|
(12
|
)
|
|
648
|
|
|||||
Total Tenneco Inc.
|
$
|
2,096
|
|
|
$
|
484
|
|
|
$
|
1,612
|
|
|
$
|
(31
|
)
|
|
$
|
1,643
|
|
|
Three Months Ended September 30, 2015
|
||||||||||||||||||
|
Revenues
|
|
Substrate Sales
|
|
Value-add Revenues
|
|
Currency Impact on Value-add Revenues
|
|
Value-add Revenues excluding Currency
|
||||||||||
|
(Millions)
|
||||||||||||||||||
Clean Air Division
|
|
|
|
|
|
|
|
|
|
||||||||||
North America
|
$
|
720
|
|
|
$
|
251
|
|
|
$
|
469
|
|
|
$
|
—
|
|
|
$
|
469
|
|
Europe, South America & India
|
453
|
|
|
166
|
|
|
287
|
|
|
—
|
|
|
287
|
|
|||||
Asia Pacific
|
235
|
|
|
58
|
|
|
177
|
|
|
—
|
|
|
177
|
|
|||||
Total Clean Air Division
|
1,408
|
|
|
475
|
|
|
933
|
|
|
—
|
|
|
933
|
|
|||||
Ride Performance Division
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
North America
|
330
|
|
|
—
|
|
|
330
|
|
|
—
|
|
|
330
|
|
|||||
Europe, South America & India
|
236
|
|
|
—
|
|
|
236
|
|
|
—
|
|
|
236
|
|
|||||
Asia Pacific
|
51
|
|
|
—
|
|
|
51
|
|
|
—
|
|
|
51
|
|
|||||
Total Ride Performance Division
|
617
|
|
|
—
|
|
|
617
|
|
|
—
|
|
|
617
|
|
|||||
Total Tenneco Inc.
|
$
|
2,025
|
|
|
$
|
475
|
|
|
$
|
1,550
|
|
|
$
|
—
|
|
|
$
|
1,550
|
|
|
Three Months Ended September 30, 2016
Versus Three Months Ended September 30, 2015 Dollar and Percent Increase (Decrease) |
||||||||||||
|
Revenues
|
|
Percent
|
|
Value-add Revenues excluding Currency
|
|
Percent
|
||||||
|
(Millions Except Percent Amounts)
|
||||||||||||
Clean Air Division
|
|
|
|
|
|
|
|
||||||
North America
|
$
|
(4
|
)
|
|
(1
|
)%
|
|
$
|
(1
|
)
|
|
—
|
%
|
Europe, South America & India
|
34
|
|
|
8
|
%
|
|
30
|
|
|
10
|
%
|
||
Asia Pacific
|
22
|
|
|
9
|
%
|
|
33
|
|
|
19
|
%
|
||
Total Clean Air Division
|
52
|
|
|
4
|
%
|
|
62
|
|
|
7
|
%
|
||
Ride Performance Division
|
|
|
|
|
|
|
|
||||||
North America
|
(24
|
)
|
|
(7
|
)%
|
|
(22
|
)
|
|
(7
|
)%
|
||
Europe, South America & India
|
22
|
|
|
9
|
%
|
|
29
|
|
|
12
|
%
|
||
Asia Pacific
|
21
|
|
|
41
|
%
|
|
24
|
|
|
47
|
%
|
||
Total Ride Performance Division
|
19
|
|
|
3
|
%
|
|
31
|
|
|
5
|
%
|
||
Total Tenneco Inc.
|
$
|
71
|
|
|
4
|
%
|
|
$
|
93
|
|
|
6
|
%
|
|
Three Months Ended September 30,
|
||||||||||
|
2016
|
|
2015
|
|
Increase
(Decrease)
|
|
% Increase
(Decrease)
|
||||
|
(Number of Vehicles in Thousands)
|
||||||||||
North America
|
4,457
|
|
|
4,368
|
|
|
89
|
|
|
2
|
%
|
Europe
|
4,721
|
|
|
4,806
|
|
|
(85
|
)
|
|
(2
|
)%
|
South America
|
697
|
|
|
779
|
|
|
(82
|
)
|
|
(10
|
)%
|
India
|
1,124
|
|
|
988
|
|
|
136
|
|
|
14
|
%
|
Total Europe, South America & India
|
6,542
|
|
|
6,573
|
|
|
(31
|
)
|
|
—
|
%
|
China
|
5,985
|
|
|
4,830
|
|
|
1,155
|
|
|
24
|
%
|
Australia
|
45
|
|
|
47
|
|
|
(2
|
)
|
|
(6
|
)%
|
|
Nine Months Ended September 30, 2016
|
||||||||||||||||||
|
Revenues
|
|
Substrate Sales
|
|
Value-add Revenues
|
|
Currency Impact on Value-add Revenues
|
|
Value-add Revenues excluding Currency
|
||||||||||
|
(Millions)
|
||||||||||||||||||
Clean Air Division
|
|
|
|
|
|
|
|
|
|
||||||||||
North America
|
$
|
2,252
|
|
|
$
|
792
|
|
|
$
|
1,460
|
|
|
$
|
(1
|
)
|
|
$
|
1,461
|
|
Europe, South America & India
|
1,498
|
|
|
548
|
|
|
950
|
|
|
(45
|
)
|
|
995
|
|
|||||
Asia Pacific
|
777
|
|
|
173
|
|
|
604
|
|
|
(27
|
)
|
|
631
|
|
|||||
Total Clean Air Division
|
4,527
|
|
|
1,513
|
|
|
3,014
|
|
|
(73
|
)
|
|
3,087
|
|
|||||
Ride Performance Division
|
|
|
|
|
|
|
|
|
|
||||||||||
North America
|
952
|
|
|
—
|
|
|
952
|
|
|
(10
|
)
|
|
962
|
|
|||||
Europe, South America & India
|
771
|
|
|
—
|
|
|
771
|
|
|
(47
|
)
|
|
818
|
|
|||||
Asia Pacific
|
194
|
|
|
—
|
|
|
194
|
|
|
(10
|
)
|
|
204
|
|
|||||
Total Ride Performance Division
|
1,917
|
|
|
—
|
|
|
1,917
|
|
|
(67
|
)
|
|
1,984
|
|
|||||
Total Tenneco Inc.
|
$
|
6,444
|
|
|
$
|
1,513
|
|
|
$
|
4,931
|
|
|
$
|
(140
|
)
|
|
$
|
5,071
|
|
|
Nine Months Ended September 30, 2015
|
||||||||||||||||||
|
Revenues
|
|
Substrate Sales
|
|
Value-add Revenues
|
|
Currency Impact on Value-add Revenues
|
|
Value-add Revenues excluding Currency
|
||||||||||
|
(Millions)
|
||||||||||||||||||
Clean Air Division
|
|
|
|
|
|
|
|
|
|
||||||||||
North America
|
$
|
2,150
|
|
|
$
|
760
|
|
|
$
|
1,390
|
|
|
$
|
—
|
|
|
$
|
1,390
|
|
Europe, South America & India
|
1,381
|
|
|
500
|
|
|
881
|
|
|
—
|
|
|
881
|
|
|||||
Asia Pacific
|
743
|
|
|
174
|
|
|
569
|
|
|
—
|
|
|
569
|
|
|||||
Total Clean Air Division
|
4,274
|
|
|
1,434
|
|
|
2,840
|
|
|
—
|
|
|
2,840
|
|
|||||
Ride Performance Division
|
|
|
|
|
|
|
|
|
|
||||||||||
North America
|
1,021
|
|
|
—
|
|
|
1,021
|
|
|
—
|
|
|
1,021
|
|
|||||
Europe, South America & India
|
718
|
|
|
—
|
|
|
718
|
|
|
—
|
|
|
718
|
|
|||||
Asia Pacific
|
165
|
|
|
—
|
|
|
165
|
|
|
—
|
|
|
165
|
|
|||||
Total Ride Performance Division
|
1,904
|
|
|
—
|
|
|
1,904
|
|
|
—
|
|
|
1,904
|
|
|||||
Total Tenneco Inc.
|
$
|
6,178
|
|
|
$
|
1,434
|
|
|
$
|
4,744
|
|
|
$
|
—
|
|
|
$
|
4,744
|
|
|
Nine Months Ended September 30, 2016
Versus Nine Months Ended September 30, 2015 Dollar and Percent Increase (Decrease) |
||||||||||||
|
Revenues
|
|
Percent
|
|
Value-add Revenues excluding Currency
|
|
Percent
|
||||||
|
(Millions Except Percent Amounts)
|
||||||||||||
Clean Air Division
|
|
|
|
|
|
|
|
||||||
North America
|
$
|
102
|
|
|
5
|
%
|
|
$
|
71
|
|
|
5
|
%
|
Europe, South America & India
|
117
|
|
|
8
|
%
|
|
114
|
|
|
13
|
%
|
||
Asia Pacific
|
34
|
|
|
5
|
%
|
|
62
|
|
|
11
|
%
|
||
Total Clean Air Division
|
253
|
|
|
6
|
%
|
|
247
|
|
|
9
|
%
|
||
Ride Performance Division
|
|
|
|
|
|
|
|
||||||
North America
|
(69
|
)
|
|
(7
|
)%
|
|
(59
|
)
|
|
(6
|
)%
|
||
Europe, South America & India
|
53
|
|
|
7
|
%
|
|
100
|
|
|
14
|
%
|
||
Asia Pacific
|
29
|
|
|
18
|
%
|
|
39
|
|
|
24
|
%
|
||
Total Ride Performance Division
|
13
|
|
|
1
|
%
|
|
80
|
|
|
4
|
%
|
||
Total Tenneco Inc.
|
$
|
266
|
|
|
4
|
%
|
|
$
|
327
|
|
|
7
|
%
|
|
Nine Months Ended September 30,
|
||||||||||
|
2016
|
|
2015
|
|
Increase
(Decrease) |
|
% Increase
(Decrease) |
||||
|
(Number of Vehicles in Thousands)
|
||||||||||
North America
|
13,524
|
|
|
13,167
|
|
|
357
|
|
|
3
|
%
|
Europe
|
16,137
|
|
|
15,724
|
|
|
413
|
|
|
3
|
%
|
South America
|
1,996
|
|
|
2,383
|
|
|
(387
|
)
|
|
(16
|
)%
|
India
|
3,132
|
|
|
2,879
|
|
|
253
|
|
|
9
|
%
|
Total Europe, South America & India
|
21,265
|
|
|
20,986
|
|
|
279
|
|
|
1
|
%
|
China
|
18,428
|
|
|
16,506
|
|
|
1,922
|
|
|
12
|
%
|
Australia
|
123
|
|
|
128
|
|
|
(5
|
)
|
|
(4
|
)%
|
|
Three Months Ended September 30,
|
|
Change
|
||||||||
|
2016
|
|
2015
|
|
|||||||
|
(Millions)
|
||||||||||
Clean Air Division
|
|
|
|
|
|
||||||
North America
|
$
|
44
|
|
|
$
|
58
|
|
|
$
|
(14
|
)
|
Europe, South America & India
|
30
|
|
|
14
|
|
|
16
|
|
|||
Asia Pacific
|
37
|
|
|
31
|
|
|
6
|
|
|||
Total Clean Air Division
|
111
|
|
|
103
|
|
|
8
|
|
|||
Ride Performance Division
|
|
|
|
|
|
||||||
North America
|
37
|
|
|
39
|
|
|
(2
|
)
|
|||
Europe, South America & India
|
11
|
|
|
(21
|
)
|
|
32
|
|
|||
Asia Pacific
|
15
|
|
|
9
|
|
|
6
|
|
|||
Total Ride Performance Division
|
63
|
|
|
27
|
|
|
36
|
|
|||
Other
|
(22
|
)
|
|
(14
|
)
|
|
(8
|
)
|
|||
Total Tenneco Inc.
|
$
|
152
|
|
|
$
|
116
|
|
|
$
|
36
|
|
|
Three Months Ended September 30,
|
||||||
|
2016
|
|
2015
|
||||
|
(Millions)
|
||||||
Clean Air Division
|
|
|
|
||||
Europe, South America & India
|
|
|
|
||||
Restructuring and related expenses
|
$
|
1
|
|
|
$
|
2
|
|
Asia Pacific
|
|
|
|
||||
Restructuring and related expenses
|
1
|
|
|
2
|
|
||
Total Clean Air Division
|
$
|
2
|
|
|
$
|
4
|
|
Ride Performance Division
|
|
|
|
||||
North America
|
|
|
|
||||
Restructuring and related expenses
|
5
|
|
|
1
|
|
||
Europe, South America & India
|
|
|
|
||||
Restructuring and related expenses
|
—
|
|
|
29
|
|
||
Asia Pacific
|
|
|
|
||||
Restructuring and related expenses
|
—
|
|
|
1
|
|
||
Total Ride Performance Division
|
$
|
5
|
|
|
$
|
31
|
|
|
|||||
|
Three Months Ended September 30,
|
||||
|
2016
|
|
2015
|
||
Clean Air Division
|
|
|
|
||
North America
|
6
|
%
|
|
8
|
%
|
Europe, South America & India
|
6
|
%
|
|
3
|
%
|
Asia Pacific
|
14
|
%
|
|
13
|
%
|
Total Clean Air Division
|
8
|
%
|
|
7
|
%
|
Ride Performance Division
|
|
|
|
||
North America
|
12
|
%
|
|
12
|
%
|
Europe, South America & India
|
4
|
%
|
|
(9
|
)%
|
Asia Pacific
|
21
|
%
|
|
18
|
%
|
Total Ride Performance Division
|
10
|
%
|
|
4
|
%
|
Total Tenneco Inc.
|
7
|
%
|
|
6
|
%
|
|
Nine Months Ended September 30,
|
|
Change
|
||||||||
|
2016
|
|
2015
|
|
|||||||
|
(Millions)
|
||||||||||
Clean Air Division
|
|
|
|
|
|
||||||
North America
|
$
|
172
|
|
|
$
|
179
|
|
|
$
|
(7
|
)
|
Europe, South America & India
|
75
|
|
|
36
|
|
|
39
|
|
|||
Asia Pacific
|
109
|
|
|
86
|
|
|
23
|
|
|||
Total Clean Air Division
|
356
|
|
|
301
|
|
|
55
|
|
|||
Ride Performance Division
|
|
|
|
|
|
||||||
North America
|
127
|
|
|
125
|
|
|
2
|
|
|||
Europe, South America & India
|
19
|
|
|
(1
|
)
|
|
20
|
|
|||
Asia Pacific
|
38
|
|
|
27
|
|
|
11
|
|
|||
Total Ride Performance Division
|
184
|
|
|
151
|
|
|
33
|
|
|||
Other
|
(87
|
)
|
|
(61
|
)
|
|
(26
|
)
|
|||
Total Tenneco Inc.
|
$
|
453
|
|
|
$
|
391
|
|
|
$
|
62
|
|
|
Nine Months Ended September 30,
|
||||||
|
2016
|
|
2015
|
||||
|
(Millions)
|
||||||
Clean Air Division
|
|
|
|
||||
Europe, South America & India
|
|
|
|
||||
Restructuring and related expenses
|
$
|
2
|
|
|
$
|
4
|
|
Asia Pacific
|
|
|
|
||||
Restructuring and related expenses
|
1
|
|
|
3
|
|
||
Total Clean Air Division
|
$
|
3
|
|
|
$
|
7
|
|
Ride Performance Division
|
|
|
|
||||
North America
|
|
|
|
||||
Restructuring and related expenses
|
6
|
|
|
2
|
|
||
Europe, South America & India
|
|
|
|
||||
Restructuring and related expenses
|
17
|
|
|
36
|
|
||
Asia Pacific
|
|
|
|
||||
Restructuring and related expenses
|
—
|
|
|
2
|
|
||
Total Ride Performance Division
|
$
|
23
|
|
|
$
|
40
|
|
|
|||||
|
Nine Months Ended September 30,
|
||||
|
2016
|
|
2015
|
||
Clean Air Division
|
|
|
|
||
North America
|
8
|
%
|
|
8
|
%
|
Europe, South America & India
|
5
|
%
|
|
3
|
%
|
Asia Pacific
|
14
|
%
|
|
12
|
%
|
Total Clean Air Division
|
8
|
%
|
|
7
|
%
|
Ride Performance Division
|
|
|
|
||
North America
|
13
|
%
|
|
12
|
%
|
Europe, South America & India
|
2
|
%
|
|
—
|
%
|
Asia Pacific
|
20
|
%
|
|
16
|
%
|
Total Ride Performance Division
|
10
|
%
|
|
8
|
%
|
Total Tenneco Inc.
|
7
|
%
|
|
6
|
%
|
|
December 31,
2015 Restructuring Reserve |
|
2016
Expenses |
|
2016
Cash Payments |
|
Impact of Exchange Rates
|
|
September 30, 2016
Restructuring Reserve |
||||
|
(Millions)
|
||||||||||||
Employee Severance, Termination Benefits and Other Related Costs
|
$
|
30
|
|
|
21
|
|
(35)
|
|
1
|
|
$
|
17
|
|
|
Three Months Ended September 30,
|
||||||
|
2016
|
|
2015
|
||||
|
(Millions)
|
||||||
Cash provided (used) by:
|
|
|
|
||||
Operating activities
|
$
|
139
|
|
|
$
|
106
|
|
Investing activities
|
(78
|
)
|
|
(75
|
)
|
||
Financing activities
|
(51
|
)
|
|
(36
|
)
|
|
Nine Months Ended September 30,
|
||||||
|
2016
|
|
2015
|
||||
|
(Millions)
|
||||||
Cash provided (used) by:
|
|
|
|
||||
Operating activities
|
$
|
239
|
|
|
$
|
188
|
|
Investing activities
|
(225
|
)
|
|
(230
|
)
|
||
Financing activities
|
20
|
|
|
11
|
|
•
|
Future reversals of existing taxable temporary differences;
|
•
|
Taxable income or loss, based on recent results, exclusive of reversing temporary differences and carryforwards;
|
•
|
Tax-planning strategies; and
|
•
|
Taxable income in prior carryback years if carryback is permitted under the relevant tax law.
|
|
September 30, 2016
|
|
December 31, 2015
|
|
% Change
|
|||||
|
(Millions)
|
|||||||||
Short-term debt and maturities classified as current
|
$
|
124
|
|
|
$
|
86
|
|
|
44
|
%
|
Long-term debt
|
1,310
|
|
|
1,124
|
|
|
17
|
|
||
Total debt
|
1,434
|
|
|
1,210
|
|
|
19
|
|
||
Total redeemable noncontrolling interests
|
35
|
|
|
43
|
|
|
(19
|
)
|
||
Total noncontrolling interests
|
40
|
|
|
42
|
|
|
(5
|
)
|
||
Tenneco Inc. shareholders’ equity
|
635
|
|
|
433
|
|
|
47
|
|
||
Total equity
|
675
|
|
|
475
|
|
|
42
|
|
||
Total capitalization
|
$
|
2,144
|
|
|
$
|
1,728
|
|
|
24
|
%
|
|
Quarter Ended
|
||||||||||||||||
|
September 30, 2016
|
|
June 30, 2016
|
|
March 31, 2016
|
||||||||||||
|
Required
|
|
Actual
|
|
Required
|
|
Actual
|
|
Required
|
|
Actual
|
||||||
Leverage Ratio (maximum)
|
3.50
|
|
|
1.52
|
|
|
3.50
|
|
|
1.45
|
|
|
3.50
|
|
|
1.54
|
|
Interest Coverage Ratio (minimum)
|
2.75
|
|
|
14.26
|
|
|
2.75
|
|
|
13.93
|
|
|
2.75
|
|
|
13.90
|
|
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
|
|
|
|
September 30, 2016
|
|
|
|
Notional Amount
in Foreign Currency
|
|
|
|
(Millions)
|
|
Australian dollars
|
—Purchase
|
3
|
|
British pounds
|
—Purchase
|
47
|
|
|
—Sell
|
(45
|
)
|
Canadian dollars
|
—Sell
|
(2
|
)
|
European euro
|
—Purchase
|
57
|
|
|
—Sell
|
(121
|
)
|
Japanese yen
|
—Purchase
|
677
|
|
|
—Sell
|
(240
|
)
|
Mexican peso
|
—Purchase
|
280
|
|
South African rand
|
—Purchase
|
137
|
|
|
—Sell
|
(184
|
)
|
U.S. dollars
|
—Purchase
|
193
|
|
|
—Sell
|
(138
|
)
|
Period
|
Total Number of
Shares Purchased |
|
Average
Price Paid |
|
Total Number
of Shares Purchased as Part of Publicly Announced Plans or Programs |
|
Maximum Value of
Shares That May Yet be Purchased Under These Plans or Programs (Millions) |
||||||
July 2016
|
603,250
|
|
|
$
|
49.33
|
|
|
600,000
|
|
|
$
|
251
|
|
August 2016
|
515,247
|
|
|
$
|
55.73
|
|
|
515,000
|
|
|
222
|
|
|
September 2016
|
535,259
|
|
|
$
|
56.61
|
|
|
535,259
|
|
|
191
|
|
|
Total
|
1,653,756
|
|
|
$
|
53.68
|
|
|
1,650,259
|
|
|
$
|
191
|
|
TENNECO INC.
|
||
|
|
|
By:
|
|
/
S
/ K
ENNETH
R. T
RAMMELL
|
|
|
Kenneth R. Trammell
|
|
|
Executive Vice President and Chief Financial Officer
|
Exhibit
Number
|
|
Description
|
3.1
|
—
|
By-laws of Tenneco Inc., amended as of October 11, 2016 (incorporated herein by reference to Exhibit 3.1 of the registrant’s Current Report on Form 8-K filed October 17, 2016).
|
|
|
|
10.1
|
—
|
Agreement and General Release between Enrique Orta and Tenneco Automotive Operating Company Inc. dated September 27, 2016 (incorporated herein by reference to Exhibit 10.1 of the registrant’s Current Report on Form 8-K filed October 4, 2016).
|
|
|
|
*10.2
|
—
|
Amendment No. 1 to Tenneco Inc. 2006 Long-Term Incentive Plan.
|
|
|
|
*10.3
|
—
|
Form of Restricted Stock Award Agreement for Employees under Tenneco Inc. 2006 Long-Term Incentive Plan (for awards after October 10, 2016).
|
|
|
|
*10.4
|
—
|
Form of Tenneco Inc. Three Year Long-Term Performance Unit Award Agreement (for awards after October 10, 2016).
|
|
|
|
*10.5
|
—
|
Notice to Employees of Agreement Amendments and New Options for Withholding.
|
|
|
|
*10.6
|
—
|
Letter of Understanding, dated as of October 7, 2015, between Tenneco Inc. and Josep Fornos.
|
|
|
|
*12
|
—
|
Computation of Ratio of Earnings to Fixed Charges.
|
|
|
|
*15.1
|
—
|
Letter of PricewaterhouseCoopers LLP regarding interim financial information.
|
|
|
|
*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.
|
|
|
|
*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.
|
(a)
|
in the event that (i) either (1) the Participant satisfies the requirements for Retirement or Total Disability (each as defined below) or (2) a tax withholding obligation is incurred under local law with respect to any of the Restricted Shares, in either case, prior to the Vesting Date with respect to such Restricted Shares (the date on which the requirements of clause (i)(1) or (i)(2) are satisfied being referred to herein as the “Tax Vesting Date”) and (ii) the Participant elects to satisfy the tax withholding obligation arising on the Tax Vesting Date pursuant to subparagraph 3(c) of this Award Agreement, then, on the Tax Vesting Date, that number of Restricted Shares having a Fair Market Value (determined as of the Tax Vesting Date) equal to the amount of taxes required to be withheld pursuant to the provisions of subparagraph 3(c) with respect to all Restricted Shares for which the Vesting Date has not occurred prior to the Tax Vesting Date shall become vested and the Tax Vesting Date shall be treated as the “Vesting Date” with respect to such shares; and
|
(b)
|
if the Participant's Termination Date occurs by reason of Total Disability, Retirement or death, any unvested Restricted Shares that are outstanding on the Termination Date shall vest immediately on the Termination Date and the Termination Date shall be the “Vesting Date” for purposes of this Award Agreement.
|
ACCEPTED:
|
TENNECO INC.
|
|
|
|
|
|
|
|
|
|
|
_____________________________________
|
_________________________________________________________
|
|
Type or Print Legal Name
|
Senior Vice President Global Human Resources and Administration
|
|
|
|
|
_____________________________________
|
|
|
(Date)
|
|
|
_____________________________________
|
|
|
Signature
|
|
|
|
|
|
_____________________________________
|
|
|
Social Security Number or National ID
|
|
|
|
|
|
_____________________________________
|
|
|
Street Address
|
|
|
|
|
|
_____________________________________
|
|
|
City/State/Zip/Country
|
|
|
(a)
|
TSR Target Value
. For purposes hereof, the Participant’s “TSR Target Value” is 50% of his or her Total Target Value. The extent to which the Participant will earn his or her TSR Target Value is based on the Company TSR Percentile Ranking (calculated as described in Appendix A) for the Performance Period based on the following chart:
|
(b)
|
EBITDA Target Value
. For purposes hereof, the Participant’s “EBITDA Target Value” is 30% of his or her Total Target Value. The extent to which the Participant will earn his or her or her EBITDA Target Value is based on the Cumulative EBITDA (calculated as described in Appendix A) for the Performance Period against the Cumulative EBITDA Target established by the Committee for the Performance Period based on the following chart:
|
Cumulative EBITDA as Percentage of Cumulative EBITDA Target
|
Percent of EBITDA Target Value Earned
|
120%
|
200% (maximum)
|
100%
|
100% (target)
|
80%
|
50% (threshold)
|
<80%
|
0%
|
(c)
|
FCF Target
Value.
For purposes hereof, the Participant’s “
FCF Target Value
” is 20% of his or her Total Target Value. The extent to which the Participant will earn his or her FCF Target Value is based on the achievement by the Company of Cumulative FCF (calculated as described in Appendix A) for the Performance Period against the Cumulative FCF Target established by the Committee for the Performance Period based on the following chart:
|
Cumulative FCF as Percentage of Cumulative FCF Target
|
Percent of FCF Target Value Earned
|
120%
|
200% (maximum)
|
100%
|
100% (target)
|
80%
|
50% (threshold)
|
<80%
|
0%
|
(d)
|
Interpolation.
Interpolation shall be used to determine the Percent of TSR Target Value Earned, the Percent of EBITDA Target Value Earned and/or the Percent of FCF Target Value Earned, as applicable, in the event the Company TSR Percentile Ranking, Percent of EBITDA Target Value Earned and/or Percent of FCF Target Value Earned, as applicable, does not fall directly on one of the ranks listed in the above applicable charts.
|
(a)
|
The payment of amounts earned as calculated pursuant to Paragraph 2 of this Award Agreement shall be paid to the Participant following the end of the Performance Period and no later
than two and one-half months after the end of the Performance Period. Payment of such amounts shall be made subject to the following:
|
(i)
|
The Participant shall have no right with respect to any payments or other amounts in respect of this Award until such payments of amounts are actually paid or otherwise delivered to the Participant.
|
(ii)
|
If the Committee determines, in its sole discretion, that the Participant at any time has willfully engaged in any activity that the Committee determines was or is harmful to the Company or any of its Subsidiaries, any unpaid portion of the Award will be forfeited and the Participant shall have no rights with respect thereto.
|
(iii)
|
Notwithstanding anything to the contrary contained herein other than Paragraph 4 hereof (subject, however, to any applicable provisions of any written employment agreement between the Participant and the Company and the provisions hereof related thereto), if the Participant’s Termination Date occurs on or before the end of the Performance Period other than as a result of Retirement, death or Total Disability, the Participant will forfeit this Award and shall have no rights with respect thereto.
|
(b)
|
Amounts earned as calculated pursuant to Paragraph 2 of this Award Agreement shall be paid out to the Participant in cash; provided, however, that, pursuant to the terms of the Plan, the Committee may elect to settle the Award in shares of Common Stock based on the Fair Market Value of shares of Common Stock at the time of payment.
|
(a)
|
and if the Participant is a specified employee (within the meaning of section 409A(a)(2)(B) of the Code) and if any such payment or benefit is required to be made or provided prior to the first day of the seventh month following the Participant’s separation from service or termination of employment, such payment or benefit shall be delayed until the first day of the seventh month following the Participant’s termination of employment or separation from service; and
|
(b)
|
the determination as to whether the Participant has had a termination of employment (or separation from service) shall be made in accordance with the provisions of section 409A of the Code and the guidance issued thereunder without application of any alternative levels of reductions of bona fide services permitted thereunder.
|
|
ACCEPTED:
|
|
|
TENNECO INC.
|
|
|
|
|
|
|
|
|
__________________________________
|
|
|
______________________________________
|
|
|
Type or Print Legal Name
|
|
|
Senior Vice President Global Human Resources
|
|
|
|
|
|
|
|
|
__________________________________
|
|
|
|
|
|
(Date)
|
|
|
|
|
|
|
|
|
|
|
|
__________________________________
|
|
|
|
|
|
Signature
|
|
|
|
|
|
|
|
|
|
|
|
__________________________________
|
|
|
|
|
|
Social Security Number or National ID
|
|
|
|
|
|
|
|
|
|
|
|
__________________________________
|
|
|
|
|
|
Street Address
|
|
|
|
|
|
|
|
|
|
|
|
__________________________________
|
|
|
|
|
|
City/State/Zip/Country
|
|
|
|
|
“TSR”
|
=
|
Change in Stock Price + Dividends Paid
|
|
|
Beginning Stock Price
|
(i)
|
Beginning Stock Price shall mean the average of the Closing Prices for each of the twenty (20) trading days immediately prior to the first day of the Performance Period;
|
(ii)
|
Ending Stock Price shall mean the average of Closing Prices for each of the last twenty (20) trading days of the Performance Period;
|
(iii)
|
Change in Stock Price shall equal the Ending Stock Price minus the Beginning Stock Price;
|
(iv)
|
Dividends Paid shall mean the total of all dividends paid on one (1) share of stock during the Performance Period, provided that dividends shall be treated as though they are reinvested;
|
(v)
|
Closing Price shall mean the last reported sale price on the applicable stock exchange or market of one share of stock for a particular trading day; and
|
(vi)
|
In all events, TSR shall be adjusted to give effect to any stock dividends, stock splits, reverse stock splits and similar transactions.
|
(i)
|
The Company’s Cumulative EBITDA means the sum of the Company’s EBITDA for each of the three fiscal years included in the Performance Period.
|
(ii)
|
EBITDA means the Company’s earnings before interest, taxes, depreciation, amortization and noncontrolling interests, adjusted for (a) asset write-downs, (b) litigation or claim judgments or settlements, (c) the effect of changes in tax laws, accounting principles, or other laws or provisions affecting reported results, (d) accruals for reorganization and restructuring programs, (e) extraordinary nonrecurring items as described in Accounting Principles Board Opinion No. 30 and/or in management’s discussion and analysis of financial condition and results of operations appearing in the Company’s annual report to stockholders for the applicable year, and (f) acquisitions or divestitures.
|
(i)
|
The Company’s Cumulative FCF means the sum of the Company’s FCF for each of the three fiscal years included in the Performance Period.
|
(ii)
|
FCF means divisional cash flow less cash interest payments, net cash tax payments and distributions to non-controlling interest partners, excluding the impact of acquisitions and divestitures.
|
RE:
|
Amendment to Outstanding Restricted Stock and Long Term Performance Unit (“LTPU”) Award Agreements
|
Position Title:
|
Executive Vice President Enterprise Business Initiatives
|
Reporting to:
|
Brian Kesseler
|
Effective Date:
|
October 1
st
2015
|
Base Pay
|
457.000 Euro
|
Bonus
|
388.450 Euro (85 % of base pay)
|
Long Term Performance Cash Plan
|
650.000 US$
|
Restricted Stock Plan
|
12726 Shares
|
•
|
Employer gives notice : If the employment relationship will be ended earliest on the first of the day following the month in which you will achieve the retirement age (currently 65), the maximum Employer notice will be 26 weeks
|
•
|
Employee gives notice : The regular notice period will be applied, currently capped at 13 weeks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ JOSEP FORNOS
|
|
29/10/2015
|
|
|
|
|
|
|
|
|
.............................................
|
|
...................
|
|
ACCEPTED :
|
|
|
|
|
|
|
Josep Fornos
|
|
Date
|
|
Nine Months Ended September 30,
|
||||||
|
2016
|
|
2015
|
||||
|
(Millions)
|
||||||
Net income attributable to Tenneco Inc.
|
$
|
323
|
|
|
$
|
179
|
|
Add:
|
|
|
|
||||
Interest expense
|
76
|
|
|
49
|
|
||
Portion of rental representative of the interest factor
|
16
|
|
|
15
|
|
||
Income Tax Expense
|
5
|
|
|
122
|
|
||
Noncontrolling interests
|
49
|
|
|
41
|
|
||
Amortization of interest capitalized
|
3
|
|
|
3
|
|
||
Undistributed losses of affiliated companies in which less
|
|
|
|
||||
than a 50% voting interest is owned
|
—
|
|
|
1
|
|
||
Earnings as defined
|
$
|
472
|
|
|
$
|
410
|
|
Interest expense
|
76
|
|
|
49
|
|
||
Interest capitalized
|
4
|
|
|
5
|
|
||
Portion of rentals representative of the interest factor
|
16
|
|
|
15
|
|
||
Fixed charges as defined
|
$
|
96
|
|
|
$
|
69
|
|
Ratio of earnings to fixed charges
|
4.92
|
|
|
5.94
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Tenneco Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of the registrant’s internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/s/
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GREGG M. SHERRILL
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Gregg M. Sherrill
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Chairman and Chief Executive Officer
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1.
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I have reviewed this quarterly report on Form 10-Q of Tenneco Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of the registrant’s internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/s/
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KENNETH R. TRAMMELL
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Kenneth R. Trammell
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Executive Vice President and Chief Financial Officer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/
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GREGG M. SHERRILL
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|
Gregg M. Sherrill
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|
Chief Executive Officer
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|
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/s/
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KENNETH R. TRAMMELL
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|
Kenneth R. Trammell
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|
Chief Financial Officer
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