Financials (10-K): Part II – Statements of cash flows for each of the three years in the period ended December 31, 2009


TENNECO INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

Year Ended December 31,   2009     2008     2007  
(Millions)      
Operating Activities                        
Net income (loss)   $ (54 )   $ (405 )   $ 5
Adjustments to reconcile net income (loss) to cash provided by operating activities —                        
Depreciation and amortization of other intangibles     221       222       205  
Goodwill impairment charge           114        
Deferred income taxes     (24 )     204       25  
Stock-based compensation     7       10       9  
Loss on sale of assets     9       10       8  
Changes in components of working capital —                        
(Increase) decrease in receivables     (8 )     126       (116 )
(Increase) decrease in inventories     101       19       (66 )
(Increase) decrease in prepayments and other current assets     (55 )     1       15  
Increase (decrease) in payables     (2 )     (181 )     100  
Increase (decrease) in accrued taxes     10       4       (25 )
Increase (decrease) in accrued interest     (1 )           (10 )  
Increase (decrease) in other current liabilities     20             19  
Change in long-term assets     10       16       6  
Change in long-term liabilities     2       19       (13 )
Other     5       1       (4 )
Net cash provided by operating activities     241       160       158  

Investing Activities
                       
Proceeds from sale of assets     5       3       10  
Cash payments for plant, property, and equipment     (120 )     (233 )     (177 )
Cash payments for software related intangible assets     (6 )     (15 )     (19 )
Cash payment for net assets purchased                 (16 )  
Acquisition of businesses (net of cash acquired)     1       (16 )      
Investments and other     1              
Net cash used by investing activities     (119 )     (261 )     (202 )

Financing Activities
                       
Issuance of common shares     188       2       8  
Issuance of long-term debt     6       1       400  
Debt issuance costs on long-term debt     (8 )     (2 )     (11 )
Increase (decrease) in bank overdrafts     (23 )     (1 )     7  
Retirement of long-term debt     (22 )     (6 )     (591 )
Net increase (decrease) in revolver borrowings and short-term debt excluding current maturities of long-term debt     (218 )     77       183  
Distribution to noncontrolling interests partners     (10 )     (13 )     (6 )
Net cash provided (used) by financing activities     (87 )     58       (10 )
Effect of foreign exchange rate changes on cash and cash equivalents     6       (19 )     40  
Increase (decrease) in cash and cash equivalents     41       (62 )     (14 )
Cash and cash equivalents, January 1     126       188       202  
Cash and cash equivalents, December 31 (Note)   $ 167     $ 126     $ 188  

Supplemental Cash Flow Information
                       
Cash paid during the year for interest   $ 131     $ 117     $ 177  
Cash paid during the year for income taxes (net of refunds)     38       62       60  

Non-cash Investing and Financing Activities
                       
Period ended balance of payables for plant, property, and equipment   $ 26     $ 28     $ 40  
Assumption of debt from business acquisition           10        
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.