Financial Highlights

(dollars in millions except share and per share data) 2011 2010 2009 2008 2007 2006
Net sales and operating revenues $7,205 $5,937 $4,649 $5,916 $6,184 $4,682
Earnings (loss) before interest expense, taxes and noncontrolling interests (EBIT) $379 $281 $92 $(3) $252 $196
Depreciation and amortization $207 $216 $221 $222 $205 $184
EBITDA1 including noncontrolling interests $586 $497 $313 $219 $457 $380
Net income (loss) attributable to Tenneco Inc. before changes in accounting principles $157 $39 $(73) $(415) $(5) $49
Earnings (Loss) per diluted share before changes in accounting principles $2.55 $0.63 $(1.50) $(8.95) $(0.11) $1.05
Capital expenditures $218 $154 $118 $221 $198 $170
Average diluted shares outstanding 61,520,160 60,998,694 48,572,463 46,406,095 45,809,730 46,755,573
Total debt $1,224 $1,223 $1,220 $1,451 $1,374 $1,385
Cash and cash equivalents $214 $233 $167 $126 $188 $202
Debt net of cash balances $1,010 $990 $1,053 $1,325 $1,186 $1,183


1 EBITDA including noncontrolling interests represents income from continuing operations before cumulative effect of changes in accounting principles, interest expense, income taxes, noncontrolling interests and depreciation and amortization. EBITDA including noncontrolling interests is not a calculation based upon generally accepted accounting principles. The amounts included in the EBITDA including noncontrolling interests calculation, however, are derived from amounts included in the historical statements of income. In addition, EBITDA including noncontrolling interests should not be considered as an alternative to net income (loss) or operating income as an indicator of our performance, or as an alternative to operating cash flows as a measure of liquidity. We have reported EBITDA including noncontrolling interests because we believe EBITDA including noncontrolling interests is a measure commonly reported and widely used by investors and other interested parties as an indicator of a company’s performance. We believe EBITDA including noncontrolling interests assists investors in comparing a company’s performance on a consistent basis without regard to depreciation and amortization, which can vary significantly depending upon many factors. However, the EBITDA including noncontrolling interests measure presented in this document may not always be comparable to similarly titled measures reported by other companies due to differences in the components of the calculation.

2 Debt net of cash balances.