Financials (10-K)

Part II – Statements of cash flows for each of the three years in the period ended December 31, 2011


TENNECO INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

Year Ended December 31,   2011     2010     2009  
(Millions)      
Operating Activities                        
Net income (loss)   $ 183     $ 63     $ (54 )
Adjustments to reconcile net income (loss) to cash provided by operating activities —                        
Goodwill impairment charge     11              
Depreciation and amortization of other intangibles     207       216       221  
Deferred income taxes     (5 )     4       (24 )
Stock-based compensation     8       9       7  
Loss on sale of assets     4       3       9  
Changes in components of working capital —                        
(Increase) decrease in receivables     (183 )     (231 )     (8 )
(Increase) decrease in inventories     (64 )     (122 )     101  
(Increase) decrease in prepayments and other current assets     (13 )     20       (55 )
Increase (decrease) in payables     144       238       (2 )
Increase (decrease) in accrued taxes     (7 )     12       10  
Increase (decrease) in accrued interest         (8 )     (1 )  
Increase (decrease) in other current liabilities     (7 )     20       20  
Change in long-term assets     1       12       10  
Change in long-term liabilities     (41 )     6       2  
Other     7       2       5  
Net cash provided by operating activities     245       244       241  

Investing Activities
                       
Proceeds from sale of assets     4       3       5  
Cash payments for plant, property, and equipment     (213 )     (151 )     (120 )
Cash payments for software related intangible assets     (15 )     (12 )     (6 )
Acquisition of businesses, net of cash acquired                 1  
Other           3       1  
Net cash used by investing activities     (224 )     (157 )     (119 )

Financing Activities
                       
Purchase of common stock under the share repurchase program     (16 )            
Issuance of common shares                 188  
Issuance of long-term debt     5       880       6  
Debt issuance costs of long-term debt     (1 )     (24 )     (8 )
Retirement of long-term debt     (24 )     (864 )     (22 )
Increase (decrease) in bank overdrafts     3       2       (23 )
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt     30       (10 )     (218 )
Capital contribution from noncontrolling interest partner     1              
Purchase of additional noncontrolling equity interest     (4 )            
Distribution to noncontrolling interests partners     (20 )     (14 )     (10 )
Net cash used by financing activities     (26 )     (30 )     (87 )
Effect of foreign exchange rate changes on cash and cash equivalents     (14 )     9       6  
Increase (decrease) in cash and cash equivalents     (19 )     66       41  
Cash and cash equivalents, January 1     233       167       126  
Cash and cash equivalents, December 31 (Note)   $ 214     $ 233     $ 167  

Supplemental Cash Flow Information
                       
Cash paid during the year for interest   $ 106     $ 149     $ 131  
Cash paid during the year for income taxes (net of refunds)     85       53       38  

Non-cash Investing and Financing Activities
                       
Period end balance of trade payables for plant, property, and equipment   $ 35     $ 29     $ 26  
Note:  Cash and cash equivalents include highly liquid investments with a maturity of three months or less at the date of purchase.

The accompanying notes to consolidated financial statements are an integral part of these statements of cash flows.