Financials (10-K): Part II – Selected Consolidated Financial Data


Item 6. Selected Financial Data

 TENNECO INC. AND CONSOLIDATED SUBSIDIARIES SELECTED CONSOLIDATED FINANCIAL DATA

Year Ended December 31,   2009     2008     2007     2006     2005(a)  
(Millions Except Share and Per Share Amounts)
Statements of Income (Loss) Data:                                        
Net sales and operating revenues —                                        
North America   $ 2,099     $ 2,641     $ 2,910     $ 1,963     $ 2,033  
Europe, South America and India     2,209       2,983       3,135       2,387       2,110  
Asia Pacific     525       543       560       436       371  
Intergroup sales     (184 )     (251 )     (421 )     (104 )     (74 )
    $ 4,649     $ 5,916     $ 6,184     $ 4,682     $ 4,440  
Income (loss) before interest expense, income taxes, and noncontrolling interests                                        
North America   $ 42     $ (107 )   $ 120     $ 103     $ 148  
Europe, South America and India     20       85       99       81       53  
Asia Pacific     30       19       33       12       16  
Total     92       (3 )     252       196       217  
Interest expense (net of interest capitalized)     133       113       164       136       133  
Income tax expense (benefit)     13       289       83       5       26  
Net income (loss)     (54 )     (405 )     5       55       58  
Less: Net income attributable to noncontrolling interests     19       10       10       6       2  
Net income (loss) attributable to Tenneco, Inc.   $ (73 )   $ (415 )   $ (5 )   $ 49     $ 56  
Weighted average shares of common stock outstanding —                                        
Basic     48,572,463       46,406,095       45,809,730       44,625,220       43,088,558  
Diluted     48,572,463       46,406,095       45,809,730       46,755,573       45,321,225  
Basic earnings (loss) per share of common stock   $ (1.50 )   $ (8.95 )   $ (0.11 )   $ 1.11     $ 1.30  
Diluted earnings (loss) per share of common stock   $ (1.50 )   $ (8.95 )   $ (0.11 )   $ 1.05     $ 1.24  
 

Year Ended December 31,   2009     2008     2007     2006     2005  
(Millions Except Ratio and Percent Amounts)
Balance Sheet Data:                                        
Total assets   $ 2,841     $ 2,828     $ 3,590     $ 3,274     $ 2,945  
Short-term debt     75       49       46       28       22  
Long-term debt     1,145       1,402       1,328       1,357       1,361  
Redeemable noncontrolling interests     7       7       6       4       3  
Total Tenneco Inc. shareholders’ equity     (21 )     (251 )     400       226       137  
Noncontrolling interests     32       24       25       24       21  
Total equity     11       (227 )     425       250       158  
Statement of Cash Flows Data:                                        
Net cash provided by operating activities   $ 241     $ 160     $ 158     $ 203     $ 123  
Net cash used by investing activities     (119 )     (261 )     (202 )     (172 )     (164 )
Net cash provided (used) by financing activities     87       58       (10 )     12       (28 )
Cash payments for plant, property and equipment     (120 )     (233 )     (177 )     (177 )     (140 )
Other Data:                                        
EBITDA including noncontrolling interests(a)   $ 313     $ 219     $ 457     $ 380     $ 394  
Ratio of EBITDA including noncontrolling interests to interest expense     2.35       1.94       2.79       2.79       2.96  
Ratio of total debt to EBITDA including noncontrolling interests     6.63       3.01       3.64       3.51       4.10  
Ratio of earnings to fixed charges(b)                 1.46       1.35       1.55  

NOTE: Our consolidated financial statements for the three years ended December 31, 2009, which are discussed in the following notes, are included in this Form 10-K under Item 8.

(a)   EBITDA including noncontrolling interests is a non-GAAP measure defined as net income before extraordinary items, cumulative effect of changes in accounting principle, interest expense, income taxes, depreciation and amortization and noncontrolling interests. We use EBITDA including noncontrolling interests, together with GAAP measures, to evaluate and compare our operating performance on a consistent basis between time periods and with other companies that compete in our markets but which may have different capital structures and tax positions, which can have an impact on the comparability of interest expense, noncontrolling interests and tax expense. We also believe that using this measure allows us to understand and compare operating performance both with and without depreciation expense, which can vary based on several factors. We believe EBITDA including noncontrolling interests is useful to our investors and other parties for these same reasons.

EBITDA including noncontrolling interests should not be used as a substitute for net income or for net cash provided by operating activities prepared in accordance with GAAP. It should also be noted that EBITDA including noncontrolling interests may not be comparable to similarly titled measures used by other companies and, furthermore, that it excludes expenditures for debt financing, taxes and future capital requirements that are essential to our ongoing business operations. For these reasons, EBITDA including noncontrolling interests is of value to management and investors only as a supplement to, and not in lieu of, GAAP results. EBITDA including noncontrolling interests are derived from the statements of income (loss) as follows:
Year Ended December 31,   2009     2008     2007     2006     2005  
(Millions)      
Net income (loss)   $ (73 )   $ (415 )   $ (5 )   $ 49     $ 56  
Noncontrolling interests     19       10       10       6       2  
Income tax expense     13       289       83       5       26  
Interest expense, net of interest capitalized     133       113       164       136       133  
Depreciation and amortization of other intangibles     221       222       205       184       177  
Total EBITDA including noncontrolling interest   $ 313     $ 219     $ 457     $ 380     $ 394  
(b)   For purposes of computing this ratio, earnings generally consist of income before income taxes and fixed charges excluding capitalized interest. Fixed charges consist of interest expense, the portion of rental expense considered representative of the interest factor and capitalized interest. Earnings were insufficient to cover fixed charges by $39 million and $121 million for the years ended December 31, 2009 and 2008, respectively. See Exhibit 12 to this Form 10-K for the calculation of this ratio.