Attached files
| file | filename |
|---|---|
| 8-K - 8-K - TENNECO INC | d350979d8k.htm |
Exhibit 99.1
TENNECO INC.
10-Q SEGMENT DATA
Unaudited
(Millions)
| Q1 2016 | ||||||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Reclass & Elims |
Total | ||||||||||||||||||||||||||||||||||
| Revenues from external customers |
$ | 765 | $ | 471 | $ | 279 | $ | 1,515 | $ | 323 | $ | 210 | $ | 88 | $ | 621 | $ | — | $ | — | $ | 2,136 | ||||||||||||||||||||||
| Intersegment revenues |
3 | 22 | — | 25 | 2 | 7 | 13 | 22 | — | (47 | ) | — | ||||||||||||||||||||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure) |
62 | 15 | 34 | 111 | 42 | (6 | ) | 13 | 49 | (36 | ) | — | 124 | |||||||||||||||||||||||||||||||
| Total assets |
1,352 | 776 | 636 | 2,764 | 779 | 448 | 323 | 1,550 | — | 34 | 4,348 | |||||||||||||||||||||||||||||||||
| Q2 2016 | ||||||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Reclass & Elims |
Total | ||||||||||||||||||||||||||||||||||
| Revenues from external customers |
$ | 771 | $ | 517 | $ | 264 | $ | 1,552 | $ | 323 | $ | 250 | $ | 87 | $ | 660 | $ | — | $ | — | $ | 2,212 | ||||||||||||||||||||||
| Intersegment revenues |
3 | 25 | — | 28 | 2 | 8 | 12 | 22 | — | (50 | ) | — | ||||||||||||||||||||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure) |
66 | 28 | 40 | 134 | 48 | 10 | 14 | 72 | (29 | ) | — | 177 | ||||||||||||||||||||||||||||||||
| Total assets |
1,353 | 761 | 600 | 2,714 | 778 | 433 | 317 | 1,528 | — | 34 | 4,276 | |||||||||||||||||||||||||||||||||
| Q3 2016 | ||||||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Reclass & Elims |
Total | ||||||||||||||||||||||||||||||||||
| Revenues from external customers |
$ | 716 | $ | 474 | $ | 270 | $ | 1,460 | $ | 306 | $ | 229 | $ | 101 | $ | 636 | $ | — | $ | — | $ | 2,096 | ||||||||||||||||||||||
| Intersegment revenues |
4 | 24 | 1 | 29 | 2 | 6 | 12 | 20 | — | (49 | ) | — | ||||||||||||||||||||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure) |
44 | 29 | 38 | 111 | 37 | 8 | 18 | 63 | (22 | ) | — | 152 | ||||||||||||||||||||||||||||||||
| Total assets |
1,390 | 809 | 622 | 2,821 | 727 | 478 | 333 | 1,538 | — | 47 | 4,406 | |||||||||||||||||||||||||||||||||
| Q4 2016 | ||||||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Reclass & Elims |
Total | ||||||||||||||||||||||||||||||||||
| Revenues from external customers |
$ | 751 | $ | 477 | $ | 314 | $ | 1,542 | $ | 282 | $ | 220 | $ | 111 | $ | 613 | $ | — | $ | — | $ | 2,155 | ||||||||||||||||||||||
| Intersegment revenues |
3 | 21 | 2 | 26 | 3 | 6 | 11 | 20 | — | (46 | ) | — | ||||||||||||||||||||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure) |
53 | 26 | 43 | 122 | 30 | 4 | 20 | 54 | (101 | ) | — | 75 | ||||||||||||||||||||||||||||||||
| Total assets |
1,356 | 697 | 679 | 2,732 | 723 | 488 | 352 | 1,563 | — | 47 | 4,342 | |||||||||||||||||||||||||||||||||
We are a global manufacturer organized and manage our business along our two major product lines (clean air and ride performance) and three geographic areas (North America; Europe and South America; and Asia Pacific), resulting in six operating segments (North America Clean Air, North America Ride Performance, Europe and South America Clean Air, Europe and South America Ride Performance, Asia Pacific Clean Air and Asia Pacific Ride Performance). Within each geographical area, each operating segment manufactures and distributes either clean air or ride performance products primarily for the original equipment and aftermarket industries. Each of the six operating segments constitutes a reportable segment. Costs related to other business activities, primarily corporate headquarter functions, are disclosed separately from the six operating segments as “Other.” We evaluate segment performance based primarily on earnings before interest expense, income taxes, and noncontrolling interests. Products are transferred between segments and geographic areas on a basis intended to reflect as nearly as possible the “market value” of the products.
TENNECO INC.
10-K SEGMENT DATA
Unaudited
(Millions)
| FY 2016 | ||||||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Reclass & Elims |
Total | ||||||||||||||||||||||||||||||||||
| Revenues from external customers |
$ | 3,003 | $ | 1,939 | $ | 1,127 | $ | 6,069 | $ | 1,234 | $ | 909 | $ | 387 | $ | 2,530 | $ | — | $ | — | $ | 8,599 | ||||||||||||||||||||||
| Intersegment revenues |
13 | 92 | 3 | 108 | 9 | 27 | 48 | 84 | — | (192 | ) | — | ||||||||||||||||||||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure) |
225 | 98 | 155 | 478 | 157 | 16 | 65 | 238 | (188 | ) | — | 528 | ||||||||||||||||||||||||||||||||
| Total assets |
1,356 | 697 | 679 | 2,732 | 723 | 488 | 352 | 1,563 | — | 47 | 4,342 | |||||||||||||||||||||||||||||||||
| FY 2015 | ||||||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Reclass & Elims |
Total | ||||||||||||||||||||||||||||||||||
| Revenues from external customers |
$ | 2,851 | $ | 1,792 | $ | 1,080 | $ | 5,723 | $ | 1,313 | $ | 846 | $ | 327 | $ | 2,486 | $ | — | $ | — | $ | 8,209 | ||||||||||||||||||||||
| Intersegment revenues |
16 | 100 | — | 116 | 10 | 30 | 46 | 86 | — | (202 | ) | — | ||||||||||||||||||||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure) |
244 | 49 | 124 | 417 | 155 | (11 | ) | 45 | 189 | (87 | ) | — | 519 | |||||||||||||||||||||||||||||||
| Total assets |
1,209 | 680 | 626 | 2,515 | 692 | 424 | 304 | 1,420 | — | 32 | 3,967 | |||||||||||||||||||||||||||||||||
| FY 2014 | ||||||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Reclass & Elims |
Total | ||||||||||||||||||||||||||||||||||
| Revenues from external customers |
$ | 2,815 | $ | 1,930 | $ | 1,066 | $ | 5,811 | $ | 1,351 | $ | 938 | $ | 320 | $ | 2,609 | $ | — | $ | — | $ | 8,420 | ||||||||||||||||||||||
| Intersegment revenues |
25 | 114 | — | 139 | 10 | 41 | 43 | 94 | — | (233 | ) | — | ||||||||||||||||||||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure) |
237 | 57 | 103 | 397 | 143 | 37 | 39 | 219 | (124 | ) | — | 492 | ||||||||||||||||||||||||||||||||
| Total assets |
1,156 | 756 | 624 | 2,536 | 659 | 438 | 294 | 1,391 | — | 69 | 3,996 | |||||||||||||||||||||||||||||||||
TENNECO INC.
RECONCILIATION OF GAAP (1) REVENUE TO NON-GAAP REVENUE MEASURES (2)
Unaudited
(Millions)
| Q1 2016 | ||||||||||||||||||||
| Revenues | Substrate Sales |
Value-add Revenues |
Currency Impact on Value-add Revenues |
Value-add Revenues excluding Currency |
||||||||||||||||
| Clean Air Division |
||||||||||||||||||||
| North America |
$ | 765 | $ | 271 | $ | 494 | $ | — | $ | 494 | ||||||||||
| Europe and South America |
471 | 173 | 298 | (19 | ) | 317 | ||||||||||||||
| Asia Pacific |
279 | 66 | 213 | (10 | ) | 223 | ||||||||||||||
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| Total Clean Air Division |
1,515 | 510 | 1,005 | (29 | ) | 1,034 | ||||||||||||||
| Ride Performance Division |
||||||||||||||||||||
| North America |
323 | — | 323 | (4 | ) | 327 | ||||||||||||||
| Europe and South America |
210 | — | 210 | (22 | ) | 232 | ||||||||||||||
| Asia Pacific |
88 | — | 88 | (6 | ) | 94 | ||||||||||||||
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|||||||||||
| Total Ride Performance Division |
621 | — | 621 | (32 | ) | 653 | ||||||||||||||
| Total Tenneco Inc. |
$ | 2,136 | $ | 510 | $ | 1,626 | $ | (61 | ) | $ | 1,687 | |||||||||
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|||||||||||
| Q2 2016 | ||||||||||||||||||||
| Revenues | Substrate Sales |
Value-add Revenues |
Currency Impact on Value-add Revenues |
Value-add Revenues excluding Currency |
||||||||||||||||
| Clean Air Division |
||||||||||||||||||||
| North America |
$ | 771 | $ | 273 | $ | 498 | $ | (1 | ) | $ | 499 | |||||||||
| Europe and South America |
517 | 187 | 330 | (13 | ) | 343 | ||||||||||||||
| Asia Pacific |
264 | 59 | 205 | (11 | ) | 216 | ||||||||||||||
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| Total Clean Air Division |
1,552 | 519 | 1,033 | (25 | ) | 1,058 | ||||||||||||||
| Ride Performance Division |
||||||||||||||||||||
| North America |
323 | — | 323 | (4 | ) | 327 | ||||||||||||||
| Europe and South America |
250 | — | 250 | (14 | ) | 264 | ||||||||||||||
| Asia Pacific |
87 | — | 87 | (5 | ) | 92 | ||||||||||||||
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|||||||||||
| Total Ride Performance Division |
660 | — | 660 | (23 | ) | 683 | ||||||||||||||
| Total Tenneco Inc. |
$ | 2,212 | $ | 519 | $ | 1,693 | $ | (48 | ) | $ | 1,741 | |||||||||
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|||||||||||
| Q3 2016 | ||||||||||||||||||||
| Revenues | Substrate Sales |
Value-add Revenues |
Currency Impact on Value-add Revenues |
Value-add Revenues excluding Currency |
||||||||||||||||
| Clean Air Division |
||||||||||||||||||||
| North America |
$ | 716 | $ | 248 | $ | 468 | $ | — | $ | 468 | ||||||||||
| Europe and South America |
474 | 177 | 297 | (11 | ) | 308 | ||||||||||||||
| Asia Pacific |
270 | 59 | 211 | (8 | ) | 219 | ||||||||||||||
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|||||||||||
| Total Clean Air Division |
1,460 | 484 | 976 | (19 | ) | 995 | ||||||||||||||
| Ride Performance Division |
||||||||||||||||||||
| North America |
306 | — | 306 | (2 | ) | 308 | ||||||||||||||
| Europe and South America |
229 | — | 229 | (6 | ) | 235 | ||||||||||||||
| Asia Pacific |
101 | — | 101 | (4 | ) | 105 | ||||||||||||||
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| Total Ride Performance Division |
636 | — | 636 | (12 | ) | 648 | ||||||||||||||
| Total Tenneco Inc. |
$ | 2,096 | $ | 484 | $ | 1,612 | $ | (31 | ) | $ | 1,643 | |||||||||
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|||||||||||
| Q4 2016 | ||||||||||||||||||||
| Revenues | Substrate Sales |
Value-add Revenues |
Currency Impact on Value-add Revenues |
Value-add Revenues excluding Currency |
||||||||||||||||
| Clean Air Division |
||||||||||||||||||||
| North America |
$ | 751 | $ | 260 | $ | 491 | $ | — | $ | 491 | ||||||||||
| Europe and South America |
477 | 181 | 296 | (14 | ) | 310 | ||||||||||||||
| Asia Pacific |
314 | 74 | 240 | (15 | ) | 255 | ||||||||||||||
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| Total Clean Air Division |
1,542 | 515 | 1,027 | (29 | ) | 1,056 | ||||||||||||||
| Ride Performance Division |
||||||||||||||||||||
| North America |
282 | — | 282 | (3 | ) | 285 | ||||||||||||||
| Europe and South America |
220 | — | 220 | (4 | ) | 224 | ||||||||||||||
| Asia Pacific |
111 | — | 111 | (6 | ) | 117 | ||||||||||||||
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| Total Ride Performance Division |
613 | — | 613 | (13 | ) | 626 | ||||||||||||||
| Total Tenneco Inc. |
$ | 2,155 | $ | 515 | $ | 1,640 | $ | (42 | ) | $ | 1,682 | |||||||||
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|||||||||||
| (1) | Generally Accepted Accounting Principles |
| (2) | Tenneco presents the above reconciliation of revenues in order to reflect value-add revenues separately from the effects of doing business in currencies other than the U.S. dollar. Additionally, substrate sales include precious metals pricing, which may be volatile. Substrate sales occur when, at the direction of its OE customers, Tenneco purchases catalytic converters or components thereof from suppliers, uses them in its manufacturing processes and sells them as part of the completed system. While Tenneco original equipment customers assume the risk of this volatility, it impacts reported revenue. Excluding substrate sales removes this impact. Tenneco uses this information to analyze the trend in revenues before these factors. Tenneco believes investors find this information useful in understanding period to period comparisons in the company’s revenues. |
TENNECO INC.
RECONCILIATION OF GAAP (1) REVENUE TO NON-GAAP REVENUE MEASURES (2)
Unaudited
(Millions)
| FY 2016 | ||||||||||||||||||||
| Revenues | Substrate Sales |
Value-add Revenues |
Currency Impact on Value-add Revenues |
Value-add Revenues excluding Currency |
||||||||||||||||
| Clean Air Division |
||||||||||||||||||||
| North America |
$ | 3,003 | $ | 1,052 | $ | 1,951 | $ | (1 | ) | $ | 1,952 | |||||||||
| Europe and South America |
1,939 | 718 | 1,221 | (57 | ) | 1,278 | ||||||||||||||
| Asia Pacific |
1,127 | 258 | 869 | (44 | ) | 913 | ||||||||||||||
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| Total Clean Air Division |
6,069 | 2,028 | 4,041 | (102 | ) | 4,143 | ||||||||||||||
| Ride Performance Division |
||||||||||||||||||||
| North America |
1,234 | — | 1,234 | (13 | ) | 1,247 | ||||||||||||||
| Europe and South America |
909 | — | 909 | (46 | ) | 955 | ||||||||||||||
| Asia Pacific |
387 | — | 387 | (21 | ) | 408 | ||||||||||||||
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| Total Ride Performance Division |
2,530 | — | 2,530 | (80 | ) | 2,610 | ||||||||||||||
| Total Tenneco Inc. |
$ | 8,599 | $ | 2,028 | $ | 6,571 | $ | (182 | ) | $ | 6,753 | |||||||||
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|||||||||||
| FY 2015 | ||||||||||||||||||||
| Revenues | Substrate Sales |
Value-add Revenues |
Currency Impact on Value-add Revenues |
Value-add Revenues excluding Currency |
||||||||||||||||
| Clean Air Division |
||||||||||||||||||||
| North America |
$ | 2,851 | $ | 1,007 | $ | 1,844 | $ | — | $ | 1,844 | ||||||||||
| Europe and South America |
1,792 | 648 | 1,144 | — | 1,144 | |||||||||||||||
| Asia Pacific |
1,080 | 261 | 819 | — | 819 | |||||||||||||||
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| Total Clean Air Division |
5,723 | 1,916 | 3,807 | — | 3,807 | |||||||||||||||
| Ride Performance Division |
||||||||||||||||||||
| North America |
1,313 | — | 1,313 | — | 1,313 | |||||||||||||||
| Europe and South America |
846 | — | 846 | — | 846 | |||||||||||||||
| Asia Pacific |
327 | — | 327 | — | 327 | |||||||||||||||
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| Total Ride Performance Division |
2,486 | — | 2,486 | — | 2,486 | |||||||||||||||
| Total Tenneco Inc. |
$ | 8,209 | $ | 1,916 | $ | 6,293 | $ | — | $ | 6,293 | ||||||||||
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| (1) | Generally Accepted Accounting Principles |
| (2) | Tenneco presents the above reconciliation of revenues in order to reflect value-add revenues separately from the effects of doing business in currencies other than the U.S. dollar. Additionally, substrate sales include precious metals pricing, which may be volatile. Substrate sales occur when, at the direction of its OE customers, Tenneco purchases catalytic converters or components thereof from suppliers, uses them in its manufacturing processes and sells them as part of the completed system. While Tenneco original equipment customers assume the risk of this volatility, it impacts reported revenue. Excluding substrate sales removes this impact. Tenneco uses this information to analyze the trend in revenues before these factors. Tenneco believes investors find this information useful in understanding period to period comparisons in the company’s revenues. |
TENNECO INC.
RECONCILIATION OF GAAP (1) REVENUE TO NON-GAAP REVENUE MEASURES (2)
Unaudited
(Millions)
| FY 2015 | ||||||||||||||||||||
| Revenues | Substrate Sales |
Value-add Revenues |
Currency Impact on Value-add Revenues |
Value-add Revenues excluding Currency |
||||||||||||||||
| Clean Air Division |
||||||||||||||||||||
| North America |
$ | 2,851 | $ | 1,007 | $ | 1,844 | $ | (5 | ) | $ | 1,849 | |||||||||
| Europe and South America |
1,792 | 648 | 1,144 | (234 | ) | 1,378 | ||||||||||||||
| Asia Pacific |
1,080 | 261 | 819 | (30 | ) | 849 | ||||||||||||||
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| Total Clean Air Division |
5,723 | 1,916 | 3,807 | (269 | ) | 4,076 | ||||||||||||||
| Ride Performance Division |
||||||||||||||||||||
| North America |
1,313 | — | 1,313 | (29 | ) | 1,342 | ||||||||||||||
| Europe and South America |
846 | — | 846 | (190 | ) | 1,036 | ||||||||||||||
| Asia Pacific |
327 | — | 327 | (20 | ) | 347 | ||||||||||||||
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| Total Ride Performance Division |
2,486 | — | 2,486 | (239 | ) | 2,725 | ||||||||||||||
| Total Tenneco Inc. |
$ | 8,209 | $ | 1,916 | $ | 6,293 | $ | (508 | ) | $ | 6,801 | |||||||||
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| FY 2014 | ||||||||||||||||||||
| Revenues | Substrate Sales |
Value-add Revenues |
Currency Impact on Value-add Revenues |
Value-add Revenues excluding Currency |
||||||||||||||||
| Clean Air Division |
||||||||||||||||||||
| North America |
$ | 2,815 | $ | 1,045 | $ | 1,770 | $ | — | $ | 1,770 | ||||||||||
| Europe and South America |
1,930 | 651 | 1,279 | — | 1,279 | |||||||||||||||
| Asia Pacific |
1,066 | 238 | 828 | — | 828 | |||||||||||||||
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|||||||||||
| Total Clean Air Division |
5,811 | 1,934 | 3,877 | — | 3,877 | |||||||||||||||
| Ride Performance Division |
||||||||||||||||||||
| North America |
1,351 | — | 1,351 | — | 1,351 | |||||||||||||||
| Europe and South America |
938 | — | 938 | — | 938 | |||||||||||||||
| Asia Pacific |
320 | — | 320 | — | 320 | |||||||||||||||
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| Total Ride Performance Division |
2,609 | — | 2,609 | — | 2,609 | |||||||||||||||
| Total Tenneco Inc. |
$ | 8,420 | $ | 1,934 | $ | 6,486 | $ | — | $ | 6,486 | ||||||||||
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|||||||||||
| (1) | Generally Accepted Accounting Principles |
| (2) | Tenneco presents the above reconciliation of revenues in order to reflect value-add revenues separately from the effects of doing business in currencies other than the U.S. dollar. Additionally, substrate sales include precious metals pricing, which may be volatile. Substrate sales occur when, at the direction of its OE customers, Tenneco purchases catalytic converters or components thereof from suppliers, uses them in its manufacturing processes and sells them as part of the completed system. While Tenneco original equipment customers assume the risk of this volatility, it impacts reported revenue. Excluding substrate sales removes this impact. Tenneco uses this information to analyze the trend in revenues before these factors. Tenneco believes investors find this information useful in understanding period to period comparisons in the company’s revenues. |
TENNECO INC.
RECONCILIATION OF GAAP(1) TO NON-GAAP EARNINGS MEASURES(2)
Unaudited
(Millions)
| Q1 2016 | ||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Total | |||||||||||||||||||||||||||||||
| EBIT |
$ | 62 | $ | 15 | $ | 34 | $ | 111 | $ | 42 | $ | (6 | ) | $ | 13 | $ | 49 | $ | (36 | ) | $ | 124 | ||||||||||||||||||
| Restructuring and related expenses |
— | — | — | — | — | 14 | — | 14 | — | 14 | ||||||||||||||||||||||||||||||
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|||||||||||||||||||||
| Adjusted EBIT |
$ | 62 | $ | 15 | $ | 34 | $ | 111 | $ | 42 | $ | 8 | $ | 13 | $ | 63 | $ | (36 | ) | $ | 138 | |||||||||||||||||||
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|||||||||||||||||||||
| Q2 2016 | ||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Total | |||||||||||||||||||||||||||||||
| EBIT |
$ | 66 | $ | 28 | $ | 40 | $ | 134 | $ | 48 | $ | 10 | $ | 14 | $ | 72 | $ | (29 | ) | $ | 177 | |||||||||||||||||||
| Restructuring and related expenses |
— | 1 | — | 1 | 1 | 3 | — | 4 | — | 5 | ||||||||||||||||||||||||||||||
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|||||||||||||||||||||
| Adjusted EBIT |
$ | 66 | $ | 29 | $ | 40 | $ | 135 | $ | 49 | $ | 13 | $ | 14 | $ | 76 | $ | (29 | ) | $ | 182 | |||||||||||||||||||
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| Q3 2016 | ||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Total | |||||||||||||||||||||||||||||||
| EBIT |
$ | 44 | $ | 29 | $ | 38 | $ | 111 | $ | 37 | $ | 8 | $ | 18 | $ | 63 | $ | (22 | ) | $ | 152 | |||||||||||||||||||
| Restructuring and related expenses |
— | 1 | 1 | 2 | 5 | — | — | 5 | — | 7 | ||||||||||||||||||||||||||||||
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|||||||||||||||||||||
| Adjusted EBIT |
$ | 44 | $ | 30 | $ | 39 | $ | 113 | $ | 42 | $ | 8 | $ | 18 | $ | 68 | $ | (22 | ) | $ | 159 | |||||||||||||||||||
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| Q4 2016 | ||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Total | |||||||||||||||||||||||||||||||
| EBIT |
$ | 53 | $ | 26 | $ | 43 | $ | 122 | $ | 30 | $ | 4 | $ | 20 | $ | 54 | $ | (101 | ) | $ | 75 | |||||||||||||||||||
| Restructuring and related expenses |
— | 1 | 3 | 4 | — | 3 | 1 | 4 | 2 | 10 | ||||||||||||||||||||||||||||||
| Pension charges (3) |
— | — | — | — | — | — | — | — | 72 | 72 | ||||||||||||||||||||||||||||||
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|||||||||||||||||||||
| Adjusted EBIT |
$ | 53 | $ | 27 | $ | 46 | $ | 126 | $ | 30 | $ | 7 | $ | 21 | $ | 58 | $ | (27 | ) | $ | 157 | |||||||||||||||||||
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| (1) | Generally Accepted Accounting Principles |
| (2) | Tenneco presents the above reconciliation of GAAP to non-GAAP earnings measures primarily to reflect the results in a manner that allows a better understanding of the results of operational activities separate from the financial impact of decisions made for the long-term benefit of the company and other items impacting comparability between the periods. Adjustments similar to the ones reflected above have been recorded in earlier periods, and similar types of adjustments can reasonably be expected to be recorded in future periods. Using only the non-GAAP earnings measures to analyze earnings would have material limitations because its calculation is based on the subjective determinations of management regarding the nature and classification of events and circumstances that investors may find material. Management compensates for these limitations by utilizing both GAAP and non-GAAP earnings measures reflected above to understand and analyze the results of the business. The company believes investors find the non-GAAP information helpful in understanding the ongoing performance of operations separate from items that may have a disproportionate positive or negative impact on the company’s financial results in any particular period. |
| (3) | Charges related to Pension derisking. |
TENNECO INC.
RECONCILIATION OF GAAP(1) TO NON-GAAP EARNINGS MEASURES(2)
Unaudited
(Millions)
| FY 2016 | ||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Total | |||||||||||||||||||||||||||||||
| EBIT |
$ | 225 | $ | 98 | $ | 155 | $ | 478 | $ | 157 | $ | 16 | $ | 65 | $ | 238 | $ | (188 | ) | $ | 528 | |||||||||||||||||||
| Restructuring and related expenses |
— | 3 | 4 | 7 | 6 | 20 | 1 | 27 | 2 | 36 | ||||||||||||||||||||||||||||||
| Pension charges (3) |
— | — | — | — | — | — | — | — | 72 | 72 | ||||||||||||||||||||||||||||||
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| Adjusted EBIT |
$ | 225 | $ | 101 | $ | 159 | $ | 485 | $ | 163 | $ | 36 | $ | 66 | $ | 265 | $ | (114 | ) | $ | 636 | |||||||||||||||||||
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| FY 2015 | ||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Total | |||||||||||||||||||||||||||||||
| EBIT |
$ | 244 | $ | 49 | $ | 124 | $ | 417 | $ | 155 | $ | (11 | ) | $ | 45 | $ | 189 | $ | (87 | ) | $ | 519 | ||||||||||||||||||
| Restructuring and related expenses |
— | 6 | 4 | 10 | 2 | 49 | 2 | 53 | — | 63 | ||||||||||||||||||||||||||||||
| Pension charges (3) |
— | — | — | — | — | — | — | — | 4 | 4 | ||||||||||||||||||||||||||||||
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|||||||||||||||||||||
| Adjusted EBIT |
$ | 244 | $ | 55 | $ | 128 | $ | 427 | $ | 157 | $ | 38 | $ | 47 | $ | 242 | $ | (83 | ) | $ | 586 | |||||||||||||||||||
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| FY 2014 | ||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Total | |||||||||||||||||||||||||||||||
| EBIT |
$ | 237 | $ | 57 | $ | 103 | $ | 397 | $ | 143 | $ | 37 | $ | 39 | $ | 219 | $ | (124 | ) | $ | 492 | |||||||||||||||||||
| Restructuring and related expenses |
1 | 10 | 6 | 17 | 5 | 22 | 1 | 28 | 4 | 49 | ||||||||||||||||||||||||||||||
| Pension/Postretirement charges (3) |
— | — | — | — | 1 | — | — | 1 | 31 | 32 | ||||||||||||||||||||||||||||||
| Bad debt charge (4) |
— | 4 | — | 4 | — | — | — | — | — | 4 | ||||||||||||||||||||||||||||||
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|||||||||||||||||||||
| Adjusted EBIT |
$ | 238 | $ | 71 | $ | 109 | $ | 418 | $ | 149 | $ | 59 | $ | 40 | $ | 248 | $ | (89 | ) | $ | 577 | |||||||||||||||||||
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| (1) | Generally Accepted Accounting Principles |
| (2) | Tenneco presents the above reconciliation of GAAP to non-GAAP earnings measures primarily to reflect the results in a manner that allows a better understanding of the results of operational activities separate from the financial impact of decisions made for the long-term benefit of the company and other items impacting comparability between the periods. Adjustments similar to the ones reflected above have been recorded in earlier periods, and similar types of adjustments can reasonably be expected to be recorded in future periods. Using only the non-GAAP earnings measures to analyze earnings would have material limitations because its calculation is based on the subjective determinations of management regarding the nature and classification of events and circumstances that investors may find material. Management compensates for these limitations by utilizing both GAAP and non-GAAP earnings measures reflected above to understand and analyze the results of the business. The company believes investors find the non-GAAP information helpful in understanding the ongoing performance of operations separate from items that may have a disproportionate positive or negative impact on the company’s financial results in any particular period. |
| (3) | Charges related to Pension derisking and postretirement medical true-up. |
| (4) | Charge related to the bankruptcy of an aftermarket customer in Europe. |
TENNECO INC.
RECONCILIATION OF GAAP (1) REVENUE AND EARNINGS TO NON-GAAP REVENUE AND EARNINGS MEASURES (2)
Unaudited
(Millions except percents)
| Q1 2016 | ||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Total | |||||||||||||||||||||||||||||||
| Net sales and operating revenues |
$ | 765 | $ | 471 | $ | 279 | $ | 1,515 | $ | 323 | $ | 210 | $ | 88 | $ | 621 | $ | — | $ | 2,136 | ||||||||||||||||||||
| Less: Substrate sales |
271 | 173 | 66 | 510 | — | — | — | — | — | 510 | ||||||||||||||||||||||||||||||
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|||||||||||||||||||||
| Value-add revenues |
$ | 494 | $ | 298 | $ | 213 | $ | 1,005 | $ | 323 | $ | 210 | $ | 88 | $ | 621 | $ | — | $ | 1,626 | ||||||||||||||||||||
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|||||||||||||||||||||
| EBIT |
$ | 62 | $ | 15 | $ | 34 | $ | 111 | $ | 42 | $ | (6 | ) | $ | 13 | $ | 49 | $ | (36 | ) | $ | 124 | ||||||||||||||||||
| EBIT as a % of revenue |
8.1 | % | 3.2 | % | 12.2 | % | 7.3 | % | 13.0 | % | -2.9 | % | 14.8 | % | 7.9 | % | 5.8 | % | ||||||||||||||||||||||
| EBIT as a % of value-add revenue |
12.6 | % | 5.0 | % | 16.0 | % | 11.0 | % | 13.0 | % | -2.9 | % | 14.8 | % | 7.9 | % | 7.6 | % | ||||||||||||||||||||||
| Adjusted EBIT |
$ | 62 | $ | 15 | $ | 34 | $ | 111 | $ | 42 | $ | 8 | $ | 13 | $ | 63 | $ | (36 | ) | $ | 138 | |||||||||||||||||||
| Adjusted EBIT as a % of revenue |
8.1 | % | 3.2 | % | 12.2 | % | 7.3 | % | 13.0 | % | 3.8 | % | 14.8 | % | 10.1 | % | 6.5 | % | ||||||||||||||||||||||
| Adjusted EBIT as a % of value-add revenue |
12.6 | % | 5.0 | % | 16.0 | % | 11.0 | % | 13.0 | % | 3.8 | % | 14.8 | % | 10.1 | % | 8.5 | % | ||||||||||||||||||||||
| Q2 2016 | ||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Total | |||||||||||||||||||||||||||||||
| Net sales and operating revenues |
$ | 771 | $ | 517 | $ | 264 | $ | 1,552 | $ | 323 | $ | 250 | $ | 87 | $ | 660 | $ | — | $ | 2,212 | ||||||||||||||||||||
| Less: Substrate sales |
273 | 187 | 59 | 519 | — | — | — | — | — | 519 | ||||||||||||||||||||||||||||||
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|||||||||||||||||||||
| Value-add revenues |
$ | 498 | $ | 330 | $ | 205 | $ | 1,033 | $ | 323 | $ | 250 | $ | 87 | $ | 660 | $ | — | $ | 1,693 | ||||||||||||||||||||
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|||||||||||||||||||||
| EBIT |
$ | 66 | $ | 28 | $ | 40 | $ | 134 | $ | 48 | $ | 10 | $ | 14 | $ | 72 | $ | (29 | ) | $ | 177 | |||||||||||||||||||
| EBIT as a % of revenue |
8.6 | % | 5.4 | % | 15.2 | % | 8.6 | % | 14.9 | % | 4.0 | % | 16.1 | % | 10.9 | % | 8.0 | % | ||||||||||||||||||||||
| EBIT as a % of value-add revenue |
13.3 | % | 8.5 | % | 19.5 | % | 13.0 | % | 14.9 | % | 4.0 | % | 16.1 | % | 10.9 | % | 10.5 | % | ||||||||||||||||||||||
| Adjusted EBIT |
$ | 66 | $ | 29 | $ | 40 | $ | 135 | $ | 49 | $ | 13 | $ | 14 | $ | 76 | $ | (29 | ) | $ | 182 | |||||||||||||||||||
| Adjusted EBIT as a % of revenue |
8.6 | % | 5.6 | % | 15.2 | % | 8.7 | % | 15.2 | % | 5.2 | % | 16.1 | % | 11.5 | % | 8.2 | % | ||||||||||||||||||||||
| Adjusted EBIT as a % of value-add revenue |
13.3 | % | 8.8 | % | 19.5 | % | 13.1 | % | 15.2 | % | 5.2 | % | 16.1 | % | 11.5 | % | 10.8 | % | ||||||||||||||||||||||
| Q3 2016 | ||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Total | |||||||||||||||||||||||||||||||
| Net sales and operating revenues |
$ | 716 | $ | 474 | $ | 270 | $ | 1,460 | $ | 306 | $ | 229 | $ | 101 | $ | 636 | $ | — | $ | 2,096 | ||||||||||||||||||||
| Less: Substrate sales |
248 | 177 | 59 | 484 | — | — | — | — | — | 484 | ||||||||||||||||||||||||||||||
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|||||||||||||||||||||
| Value-add revenues |
$ | 468 | $ | 297 | $ | 211 | $ | 976 | $ | 306 | $ | 229 | $ | 101 | $ | 636 | $ | — | $ | 1,612 | ||||||||||||||||||||
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|||||||||||||||||||||
| EBIT |
$ | 44 | $ | 29 | $ | 38 | $ | 111 | $ | 37 | $ | 8 | $ | 18 | $ | 63 | $ | (22 | ) | $ | 152 | |||||||||||||||||||
| EBIT as a % of revenue |
6.1 | % | 6.1 | % | 14.1 | % | 7.6 | % | 12.1 | % | 3.5 | % | 17.8 | % | 9.9 | % | 7.3 | % | ||||||||||||||||||||||
| EBIT as a % of value-add revenue |
9.4 | % | 9.8 | % | 18.0 | % | 11.4 | % | 12.1 | % | 3.5 | % | 17.8 | % | 9.9 | % | 9.4 | % | ||||||||||||||||||||||
| Adjusted EBIT |
$ | 44 | $ | 30 | $ | 39 | $ | 113 | $ | 42 | $ | 8 | $ | 18 | $ | 68 | $ | (22 | ) | $ | 159 | |||||||||||||||||||
| Adjusted EBIT as a % of revenue |
6.1 | % | 6.3 | % | 14.4 | % | 7.7 | % | 13.7 | % | 3.5 | % | 17.8 | % | 10.7 | % | 7.6 | % | ||||||||||||||||||||||
| Adjusted EBIT as a % of value-add revenue |
9.4 | % | 10.1 | % | 18.5 | % | 11.6 | % | 13.7 | % | 3.5 | % | 17.8 | % | 10.7 | % | 9.9 | % | ||||||||||||||||||||||
| Q4 2016 | ||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Total | |||||||||||||||||||||||||||||||
| Net sales and operating revenues |
$ | 751 | $ | 477 | $ | 314 | $ | 1,542 | $ | 282 | $ | 220 | $ | 111 | $ | 613 | $ | — | $ | 2,155 | ||||||||||||||||||||
| Less: Substrate sales |
260 | 181 | 74 | 515 | — | — | — | — | — | 515 | ||||||||||||||||||||||||||||||
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|||||||||||||||||||||
| Value-add revenues |
$ | 491 | $ | 296 | $ | 240 | $ | 1,027 | $ | 282 | $ | 220 | $ | 111 | $ | 613 | $ | — | $ | 1,640 | ||||||||||||||||||||
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|||||||||||||||||||||
| EBIT |
$ | 53 | $ | 26 | $ | 43 | $ | 122 | $ | 30 | $ | 4 | $ | 20 | $ | 54 | $ | (101 | ) | $ | 75 | |||||||||||||||||||
| EBIT as a % of revenue |
7.1 | % | 5.5 | % | 13.7 | % | 7.9 | % | 10.6 | % | 1.8 | % | 18.0 | % | 8.8 | % | 3.5 | % | ||||||||||||||||||||||
| EBIT as a % of value-add revenue |
10.8 | % | 8.8 | % | 17.9 | % | 11.9 | % | 10.6 | % | 1.8 | % | 18.0 | % | 8.8 | % | 4.6 | % | ||||||||||||||||||||||
| Adjusted EBIT |
$ | 53 | $ | 27 | $ | 46 | $ | 126 | $ | 30 | $ | 7 | $ | 21 | $ | 58 | $ | (27 | ) | $ | 157 | |||||||||||||||||||
| Adjusted EBIT as a % of revenue |
7.1 | % | 5.7 | % | 14.6 | % | 8.2 | % | 10.6 | % | 3.2 | % | 18.9 | % | 9.5 | % | 7.3 | % | ||||||||||||||||||||||
| Adjusted EBIT as a % of value-add revenue |
10.8 | % | 9.1 | % | 19.2 | % | 12.3 | % | 10.6 | % | 3.2 | % | 18.9 | % | 9.5 | % | 9.6 | % | ||||||||||||||||||||||
| (1) | Generally Accepted Accounting Principles |
| (2) | Tenneco presents the above reconciliation of revenues in order to reflect EBIT as a percent of both total revenues and value-add revenues. Substrate sales include precious metals pricing, which may be volatile. Substrate sales occur when, at the direction of its OE customers, Tenneco purchases catalytic converters or components thereof from suppliers, uses them in its manufacturing processes and sells them as part of the completed system. While Tenneco original equipment customers assume the risk of this volatility, it impacts reported revenue. Excluding substrate sales removes this impact. Further, presenting EBIT as a percent of value-add revenue assists investors in evaluating our company’s operational performance without the impact of such substrate sales. |
TENNECO INC.
RECONCILIATION OF GAAP (1) REVENUE AND EARNINGS TO NON-GAAP REVENUE AND EARNINGS MEASURES (2)
Unaudited
(Millions except percents)
| FY 2016 | ||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Total | |||||||||||||||||||||||||||||||
| Net sales and operating revenues |
$ | 3,003 | $ | 1,939 | $ | 1,127 | $ | 6,069 | $ | 1,234 | $ | 909 | $ | 387 | $ | 2,530 | $ | — | $ | 8,599 | ||||||||||||||||||||
| Less: Substrate sales |
1,052 | 718 | 258 | 2,028 | — | — | — | — | — | 2,028 | ||||||||||||||||||||||||||||||
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| Value-add revenues |
$ | 1,951 | $ | 1,221 | $ | 869 | $ | 4,041 | $ | 1,234 | $ | 909 | $ | 387 | $ | 2,530 | $ | — | $ | 6,571 | ||||||||||||||||||||
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| EBIT |
$ | 225 | $ | 98 | $ | 155 | $ | 478 | $ | 157 | $ | 16 | $ | 65 | $ | 238 | $ | (188 | ) | $ | 528 | |||||||||||||||||||
| EBIT as a % of revenue |
7.5 | % | 5.1 | % | 13.8 | % | 7.9 | % | 12.7 | % | 1.8 | % | 16.8 | % | 9.4 | % | 6.1 | % | ||||||||||||||||||||||
| EBIT as a % of value-add revenue |
11.5 | % | 8.0 | % | 17.8 | % | 11.8 | % | 12.7 | % | 1.8 | % | 16.8 | % | 9.4 | % | 8.0 | % | ||||||||||||||||||||||
| Adjusted EBIT |
$ | 225 | $ | 101 | $ | 159 | $ | 485 | $ | 163 | $ | 36 | $ | 66 | $ | 265 | $ | (114 | ) | $ | 636 | |||||||||||||||||||
| Adjusted EBIT as a % of revenue |
7.5 | % | 5.2 | % | 14.1 | % | 8.0 | % | 13.2 | % | 4.0 | % | 17.1 | % | 10.5 | % | 7.4 | % | ||||||||||||||||||||||
| Adjusted EBIT as a % of value-add revenue |
11.5 | % | 8.3 | % | 18.3 | % | 12.0 | % | 13.2 | % | 4.0 | % | 17.1 | % | 10.5 | % | 9.7 | % | ||||||||||||||||||||||
| FY 2015 | ||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Total | |||||||||||||||||||||||||||||||
| Net sales and operating revenues |
$ | 2,851 | $ | 1,792 | $ | 1,080 | $ | 5,723 | $ | 1,313 | $ | 846 | $ | 327 | $ | 2,486 | $ | — | $ | 8,209 | ||||||||||||||||||||
| Less: Substrate sales |
1,007 | 648 | 261 | 1,916 | — | — | — | — | — | 1,916 | ||||||||||||||||||||||||||||||
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| Value-add revenues |
$ | 1,844 | $ | 1,144 | $ | 819 | $ | 3,807 | $ | 1,313 | $ | 846 | $ | 327 | $ | 2,486 | $ | — | $ | 6,293 | ||||||||||||||||||||
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| EBIT |
$ | 244 | $ | 49 | $ | 124 | $ | 417 | $ | 155 | $ | (11 | ) | $ | 45 | $ | 189 | $ | (87 | ) | $ | 519 | ||||||||||||||||||
| EBIT as a % of revenue |
8.6 | % | 2.7 | % | 11.5 | % | 7.3 | % | 11.8 | % | -1.3 | % | 13.8 | % | 7.6 | % | 6.3 | % | ||||||||||||||||||||||
| EBIT as a % of value-add revenue |
13.2 | % | 4.3 | % | 15.1 | % | 11.0 | % | 11.8 | % | -1.3 | % | 13.8 | % | 7.6 | % | 8.2 | % | ||||||||||||||||||||||
| Adjusted EBIT |
$ | 244 | $ | 55 | $ | 128 | $ | 427 | $ | 157 | $ | 38 | $ | 47 | $ | 242 | $ | (83 | ) | $ | 586 | |||||||||||||||||||
| Adjusted EBIT as a % of revenue |
8.6 | % | 3.1 | % | 11.9 | % | 7.5 | % | 12.0 | % | 4.5 | % | 14.4 | % | 9.7 | % | 7.1 | % | ||||||||||||||||||||||
| Adjusted EBIT as a % of value-add revenue |
13.2 | % | 4.8 | % | 15.6 | % | 11.2 | % | 12.0 | % | 4.5 | % | 14.4 | % | 9.7 | % | 9.3 | % | ||||||||||||||||||||||
| FY 2014 | ||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Total | |||||||||||||||||||||||||||||||
| Net sales and operating revenues |
$ | 2,815 | $ | 1,930 | $ | 1,066 | $ | 5,811 | $ | 1,351 | $ | 938 | $ | 320 | $ | 2,609 | $ | — | $ | 8,420 | ||||||||||||||||||||
| Less: Substrate sales |
1,045 | 651 | 238 | 1,934 | — | — | — | — | — | 1,934 | ||||||||||||||||||||||||||||||
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| Value-add revenues |
$ | 1,770 | $ | 1,279 | $ | 828 | $ | 3,877 | $ | 1,351 | $ | 938 | $ | 320 | $ | 2,609 | $ | — | $ | 6,486 | ||||||||||||||||||||
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| EBIT |
$ | 237 | $ | 57 | $ | 103 | $ | 397 | $ | 143 | $ | 37 | $ | 39 | $ | 219 | $ | (124 | ) | $ | 492 | |||||||||||||||||||
| EBIT as a % of revenue |
8.4 | % | 3.0 | % | 9.7 | % | 6.8 | % | 10.6 | % | 3.9 | % | 12.2 | % | 8.4 | % | 5.8 | % | ||||||||||||||||||||||
| EBIT as a % of value-add revenue |
13.4 | % | 4.5 | % | 12.4 | % | 10.2 | % | 10.6 | % | 3.9 | % | 12.2 | % | 8.4 | % | 7.6 | % | ||||||||||||||||||||||
| Adjusted EBIT |
$ | 238 | $ | 71 | $ | 109 | $ | 418 | $ | 149 | $ | 59 | $ | 40 | $ | 248 | $ | (89 | ) | $ | 577 | |||||||||||||||||||
| Adjusted EBIT as a % of revenue |
8.5 | % | 3.7 | % | 10.2 | % | 7.2 | % | 11.0 | % | 6.3 | % | 12.5 | % | 9.5 | % | 6.9 | % | ||||||||||||||||||||||
| Adjusted EBIT as a % of value-add revenue |
13.4 | % | 5.6 | % | 13.2 | % | 10.8 | % | 11.0 | % | 6.3 | % | 12.5 | % | 9.5 | % | 8.9 | % | ||||||||||||||||||||||
| (1) | Generally Accepted Accounting Principles |
| (2) | Tenneco presents the above reconciliation of revenues in order to reflect EBIT as a percent of both total revenues and value-add revenues. Substrate sales include precious metals pricing, which may be volatile. Substrate sales occur when, at the direction of its OE customers, Tenneco purchases catalytic converters or components thereof from suppliers, uses them in its manufacturing processes and sells them as part of the completed system. While Tenneco original equipment customers assume the risk of this volatility, it impacts reported revenue. Excluding substrate sales removes this impact. Further, presenting EBIT as a percent of value-add revenue assists investors in evaluating our company’s operational performance without the impact of such substrate sales. |
TENNECO INC.
RECONCILIATION OF GAAP(1) EBIT TO EBITDA INCLUDING NONCONTROLLING INTERESTS (2)
Unaudited
(Millions)
| Q1 2016 | ||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Total | |||||||||||||||||||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure) |
$ | 62 | $ | 15 | $ | 34 | $ | 111 | $ | 42 | $ | (6 | ) | $ | 13 | $ | 49 | $ | (36 | ) | $ | 124 | ||||||||||||||||||
| Depreciation and amortization of other intangibles |
15 | 9 | 8 | 32 | 9 | 10 | 3 | 22 | — | 54 | ||||||||||||||||||||||||||||||
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| Total EBITDA including noncontrolling interests (2) |
$ | 77 | $ | 24 | $ | 42 | $ | 143 | $ | 51 | $ | 4 | $ | 16 | $ | 71 | $ | (36 | ) | $ | 178 | |||||||||||||||||||
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| Q2 2016 | ||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Total | |||||||||||||||||||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure) |
$ | 66 | $ | 28 | $ | 40 | $ | 134 | $ | 48 | $ | 10 | $ | 14 | $ | 72 | $ | (29 | ) | $ | 177 | |||||||||||||||||||
| Depreciation and amortization of other intangibles |
17 | 11 | 6 | 34 | 8 | 7 | 3 | 18 | — | 52 | ||||||||||||||||||||||||||||||
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| Total EBITDA including noncontrolling interests (2) |
$ | 83 | $ | 39 | $ | 46 | $ | 168 | $ | 56 | $ | 17 | $ | 17 | $ | 90 | $ | (29 | ) | $ | 229 | |||||||||||||||||||
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| Q3 2016 | ||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Total | |||||||||||||||||||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure) |
$ | 44 | $ | 29 | $ | 38 | $ | 111 | $ | 37 | $ | 8 | $ | 18 | $ | 63 | $ | (22 | ) | $ | 152 | |||||||||||||||||||
| Depreciation and amortization of other intangibles |
18 | 11 | 7 | 36 | 9 | 6 | 2 | 17 | — | 53 | ||||||||||||||||||||||||||||||
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| Total EBITDA including noncontrolling interests (2) |
$ | 62 | $ | 40 | $ | 45 | $ | 147 | $ | 46 | $ | 14 | $ | 20 | $ | 80 | $ | (22 | ) | $ | 205 | |||||||||||||||||||
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| Q4 2016 | ||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Total | |||||||||||||||||||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure) |
$ | 53 | $ | 26 | $ | 43 | $ | 122 | $ | 30 | $ | 4 | $ | 20 | $ | 54 | $ | (101 | ) | $ | 75 | |||||||||||||||||||
| Depreciation and amortization of other intangibles |
16 | 11 | 8 | 35 | 9 | 7 | 2 | 18 | — | 53 | ||||||||||||||||||||||||||||||
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| Total EBITDA including noncontrolling interests (2) |
$ | 69 | $ | 37 | $ | 51 | $ | 157 | $ | 39 | $ | 11 | $ | 22 | $ | 72 | $ | (101 | ) | $ | 128 | |||||||||||||||||||
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| (1) | Generally Accepted Accounting Principles |
| (2) | EBITDA including noncontrolling interests represents income before 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 data. In addition, EBITDA including noncontrolling interests should not be considered as an alternative to net income (loss) attributable to Tenneco Inc. or operating income as an indicator of the company’s operating performance, or as an alternative to operating cash flows as a measure of liquidity. Tenneco has presented EBITDA including noncontrolling interests because it regularly reviews EBITDA including noncontrolling interests as a measure of the company’s performance. In addition, Tenneco believes its investors utilize and analyze our EBITDA including noncontrolling interests for similar purposes. Tenneco also believes 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 may not always be comparable to similarly titled measures reported by other companies due to differences in the components of the calculation. |
TENNECO INC.
RECONCILIATION OF GAAP(1) EBIT TO EBITDA INCLUDING NONCONTROLLING INTERESTS (2)
Unaudited
(Millions)
| FY 2016 | ||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Total | |||||||||||||||||||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure) |
$ | 225 | $ | 98 | $ | 155 | $ | 478 | $ | 157 | $ | 16 | $ | 65 | $ | 238 | $ | (188 | ) | $ | 528 | |||||||||||||||||||
| Depreciation and amortization of other intangibles |
66 | 42 | 29 | 137 | 35 | 30 | 10 | 75 | — | 212 | ||||||||||||||||||||||||||||||
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| Total EBITDA including noncontrolling interests (2) |
$ | 291 | $ | 140 | $ | 184 | $ | 615 | $ | 192 | $ | 46 | $ | 75 | $ | 313 | $ | (188 | ) | $ | 740 | |||||||||||||||||||
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| FY 2015 | ||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Total | |||||||||||||||||||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure) |
$ | 244 | $ | 49 | $ | 124 | $ | 417 | $ | 155 | $ | (11 | ) | $ | 45 | $ | 189 | $ | (87 | ) | $ | 519 | ||||||||||||||||||
| Depreciation and amortization of other intangibles |
65 | 39 | 26 | 130 | 33 | 31 | 9 | 73 | — | 203 | ||||||||||||||||||||||||||||||
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| Total EBITDA including noncontrolling interests (2) |
$ | 309 | $ | 88 | $ | 150 | $ | 547 | $ | 188 | $ | 20 | $ | 54 | $ | 262 | $ | (87 | ) | $ | 722 | |||||||||||||||||||
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| FY 2014 | ||||||||||||||||||||||||||||||||||||||||
| Clean Air Division | Ride Performance Division | |||||||||||||||||||||||||||||||||||||||
| North America |
Europe & South America |
Asia Pacific |
Total | North America |
Europe & South America |
Asia Pacific |
Total | Other | Total | |||||||||||||||||||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure) |
$ | 237 | $ | 57 | $ | 103 | $ | 397 | $ | 143 | $ | 37 | $ | 39 | $ | 219 | $ | (124 | ) | $ | 492 | |||||||||||||||||||
| Depreciation and amortization of other intangibles |
66 | 44 | 23 | 133 | 33 | 32 | 10 | 75 | — | 208 | ||||||||||||||||||||||||||||||
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| Total EBITDA including noncontrolling interests (2) |
$ | 303 | $ | 101 | $ | 126 | $ | 530 | $ | 176 | $ | 69 | $ | 49 | $ | 294 | $ | (124 | ) | $ | 700 | |||||||||||||||||||
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| (1) | Generally Accepted Accounting Principles |
| (2) | EBITDA including noncontrolling interests represents income before 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 data. In addition, EBITDA including noncontrolling interests should not be considered as an alternative to net income (loss) attributable to Tenneco Inc. or operating income as an indicator of the company’s operating performance, or as an alternative to operating cash flows as a measure of liquidity. Tenneco has presented EBITDA including noncontrolling interests because it regularly reviews EBITDA including noncontrolling interests as a measure of the company’s performance. In addition, Tenneco believes its investors utilize and analyze our EBITDA including noncontrolling interests for similar purposes. Tenneco also believes 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 may not always be comparable to similarly titled measures reported by other companies due to differences in the components of the calculation. |