LAKE FOREST, Ill.--(BUSINESS WIRE)--Tenneco Inc. (NYSE: TEN) announced today a change in the company’s financial reporting segments as noted in the attachments. The company will now report results in three segments, Clean Air, Ride Performance and Aftermarket. The attachments include 2015, 2016, and 2017 results aligned with these new reporting segments.
About Tenneco
Tenneco is a $9.3 billion global manufacturing company with headquarters in Lake Forest, Illinois and approximately 32,000 employees worldwide. Tenneco is one of the world’s largest designers, manufacturers and marketers of ride performance and clean air products and systems for automotive and commercial vehicle original equipment markets and the aftermarket. Tenneco’s principal brand names are Monroe®, Walker®, XNOx™ and Clevite®Elastomers.
| TENNECO INC. | ||||||||||||||||||||||||
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SUPPLEMENTAL SEGMENT DATA |
||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||
| (Millions) | ||||||||||||||||||||||||
| Q1 2017 | ||||||||||||||||||||||||
| Global Segments | ||||||||||||||||||||||||
| OE Ride | Reclass & | |||||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Elims | Total | ||||||||||||||||||
| Revenues from external customers | $ | 1,555 | $ | 428 | $ | 309 | $ | 2,292 | $ | - | $ | - | $ | 2,292 | ||||||||||
| Intersegment revenues | 25 | 15 | 11 | 51 | - | (51 | ) | $ | - | |||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests | 94 | 27 | 42 | 163 | (42 | ) | - | $ | 121 | |||||||||||||||
| Total assets | 2,809 | 1,013 | 785 | 4,607 | - | 35 | $ | 4,642 | ||||||||||||||||
| Q2 2017 | ||||||||||||||||||||||||
| Global Segments | ||||||||||||||||||||||||
| OE Ride | Reclass & | |||||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Elims | Total | ||||||||||||||||||
| Revenues from external customers | $ | 1,539 | $ | 442 | $ | 336 | $ | 2,317 | $ | - | $ | - | $ | 2,317 | ||||||||||
| Intersegment revenues | 17 | 13 | 10 | 40 | - | (40 | ) | $ | - | |||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests | 106 | 18 | 54 | 178 | (151 | ) | - | $ | 27 | |||||||||||||||
| Total assets | 2,907 | 1,075 | 872 | 4,854 | - | 27 | $ | 4,881 | ||||||||||||||||
| Q3 2017 | ||||||||||||||||||||||||
| Global Segments | ||||||||||||||||||||||||
| OE Ride | Reclass & | |||||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Elims | Total | ||||||||||||||||||
| Revenues from external customers | $ | 1,495 | $ | 457 | $ | 322 | $ | 2,274 | $ | - | $ | - | $ | 2,274 | ||||||||||
| Intersegment revenues | 12 | 15 | 9 | 36 | - | (36 | ) | $ | - | |||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests | 100 | 7 | 50 | 157 | (23 | ) | - | $ | 134 | |||||||||||||||
| Total assets | 2,922 | 1,102 | 852 | 4,876 | - | 59 | $ | 4,935 | ||||||||||||||||
| Q4 2017 | ||||||||||||||||||||||||
| Global Segments | ||||||||||||||||||||||||
| OE Ride | Reclass & | |||||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Elims | Total | ||||||||||||||||||
| Revenues from external customers | $ | 1,627 | $ | 480 | $ | 284 | $ | 2,391 | $ | - | $ | - | $ | 2,391 | ||||||||||
| Intersegment revenues | 11 | 17 | 10 | 38 | - | (38 | ) | $ | - | |||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests | 121 | 9 | 32 | 162 | (27 | ) | - | $ | 135 | |||||||||||||||
| Total assets | 2,812 | 1,155 | 812 | 4,779 | - | 63 | $ | 4,842 | ||||||||||||||||
| We are a global manufacturer organized and manage our business along our three segments (Global OE Clean Air, Global OE Ride Performance and Global Aftermarket). The reporting segments are aligned with key growth strategies. Costs related to other business activities, primarily corporate headquarter functions, are disclosed separately from the three 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. | ||||||||||||||||||||||||
|
SUPPLEMENTAL SEGMENT DATA |
||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||
| (Millions) | ||||||||||||||||||||||||
| FY 2017 | ||||||||||||||||||||||||
| Global Segments | ||||||||||||||||||||||||
| OE Ride | Reclass & | |||||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Elims | Total | ||||||||||||||||||
| Revenues from external customers | $ | 6,216 | $ | 1,807 | $ | 1,251 | $ | 9,274 | $ | - | $ | - | $ | 9,274 | ||||||||||
| Intersegment revenues | 65 | 60 | 40 | 165 | - | (165 | ) | $ | - | |||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests | 421 | 61 | 178 | 660 | (243 | ) | - | $ | 417 | |||||||||||||||
| Total assets | 2,812 | 1,155 | 812 | 4,779 | - | 63 | $ | 4,842 | ||||||||||||||||
| FY 2016 | ||||||||||||||||||||||||
| Global Segments | ||||||||||||||||||||||||
| OE Ride | Reclass & | |||||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Elims | Total | ||||||||||||||||||
| Revenues from external customers | $ | 5,764 | $ | 1,593 | $ | 1,242 | $ | 8,599 | $ | - | $ | - | $ | 8,599 | ||||||||||
| Intersegment revenues | 108 | 47 | 37 | 192 | - | (192 | ) | $ | - | |||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests | 432 | 97 | 191 | 720 | (204 | ) | - | $ | 516 | |||||||||||||||
| Total assets | 2,559 | 959 | 781 | 4,299 | - | 47 | $ | 4,346 | ||||||||||||||||
| FY 2015 | ||||||||||||||||||||||||
| Global Segments | ||||||||||||||||||||||||
| OE Ride | Reclass & | |||||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Elims | Total | ||||||||||||||||||
| Revenues from external customers | $ | 5,377 | $ | 1,545 | $ | 1,259 | $ | 8,181 | $ | - | $ | - | $ | 8,181 | ||||||||||
| Intersegment revenues | 116 | 44 | 42 | 202 | - | (202 | ) | $ | - | |||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests | 371 | 63 | 174 | 608 | (100 | ) | - | $ | 508 | |||||||||||||||
| Total assets | 2,298 | 756 | 884 | 3,938 | - | 32 | $ | 3,970 | ||||||||||||||||
| TENNECO INC. | |||||||||||||||||
| RECONCILIATION OF GAAP (1) REVENUE TO NON-GAAP REVENUE MEASURES (2) | |||||||||||||||||
| Unaudited | |||||||||||||||||
| (Millions) | |||||||||||||||||
| Q1 2017 | |||||||||||||||||
| Currency | Value-add | ||||||||||||||||
| Impact on | Revenues | ||||||||||||||||
| Substrate | Value-add | Value-add | excluding | ||||||||||||||
| Revenues | Sales | Revenues | Revenues | Currency | |||||||||||||
| Global OE Clean Air Division | $ | 1,555 | $ | 547 | $ | 1,008 | $ | (21 | ) | $ | 1,029 | ||||||
| Global OE Ride Performance Division | 428 | - | 428 | (4 | ) | 432 | |||||||||||
| Global Aftermarket Division | 309 | - | 309 | 1 | 308 | ||||||||||||
| Total Tenneco Inc. | $ | 2,292 | $ | 547 | $ | 1,745 | $ | (24 | ) | $ | 1,769 | ||||||
| Q2 2017 | |||||||||||||||||
| Currency | Value-add | ||||||||||||||||
| Impact on | Revenues | ||||||||||||||||
| Substrate | Value-add | Value-add | excluding | ||||||||||||||
| Revenues | Sales | Revenues | Revenues | Currency | |||||||||||||
| Global OE Clean Air Division | $ | 1,539 | $ | 541 | $ | 998 | $ | (11 | ) | $ | 1,009 | ||||||
| Global OE Ride Performance Division | 442 | - | 442 | (2 | ) | 444 | |||||||||||
| Global Aftermarket Division | 336 | - | 336 | (1 | ) | 337 | |||||||||||
| Total Tenneco Inc. | $ | 2,317 | $ | 541 | $ | 1,776 | $ | (14 | ) | $ | 1,790 | ||||||
| Q3 2017 | |||||||||||||||||
| Currency | Value-add | ||||||||||||||||
| Impact on | Revenues | ||||||||||||||||
| Substrate | Value-add | Value-add | excluding | ||||||||||||||
| Revenues | Sales | Revenues | Revenues | Currency | |||||||||||||
| Global OE Clean Air Division | $ | 1,495 | $ | 522 | $ | 973 | $ | 27 | $ | 946 | |||||||
| Global OE Ride Performance Division | 457 | - | 457 | 10 | 447 | ||||||||||||
| Global Aftermarket Division | 322 | - | 322 | 4 | 318 | ||||||||||||
| Total Tenneco Inc. | $ | 2,274 | $ | 522 | $ | 1,752 | $ | 41 | $ | 1,711 | |||||||
| Q4 2017 | |||||||||||||||||
| Currency | Value-add | ||||||||||||||||
| Impact on | Revenues | ||||||||||||||||
| Substrate | Value-add | Value-add | excluding | ||||||||||||||
| Revenues | Sales | Revenues | Revenues | Currency | |||||||||||||
| Global OE Clean Air Division | $ | 1,627 | $ | 577 | $ | 1,050 | $ | 37 | $ | 1,013 | |||||||
| Global OE Ride Performance Division | 480 | - | 480 | 23 | 457 | ||||||||||||
| Global Aftermarket Division | 284 | - | 284 | 6 | 278 | ||||||||||||
| Total Tenneco Inc. | $ | 2,391 | $ | 577 | $ | 1,814 | $ | 66 | $ | 1,748 | |||||||
| (1) U.S. 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 2017 | ||||||||||||||||
| Currency | Value-add | |||||||||||||||
| Impact on | Revenues | |||||||||||||||
| Substrate | Value-add | Value-add | excluding | |||||||||||||
| Revenues | Sales | Revenues | Revenues | Currency | ||||||||||||
| Global OE Clean Air Division | $ | 6,216 | $ | 2,187 | $ | 4,029 | $ | 32 | $ | 3,997 | ||||||
| Global OE Ride Performance Division | 1,807 | - | 1,807 | 27 | 1,780 | |||||||||||
| Global Aftermarket Division | 1,251 | - | 1,251 | 10 | 1,241 | |||||||||||
| Total Tenneco Inc. | $ | 9,274 | $ | 2,187 | $ | 7,087 | $ | 69 | $ | 7,018 | ||||||
| FY 2016 | ||||||||||||||||
| Currency | Value-add | |||||||||||||||
| Impact on | Revenues | |||||||||||||||
| Substrate | Value-add | Value-add | excluding | |||||||||||||
| Revenues | Sales | Revenues | Revenues | Currency | ||||||||||||
| Global OE Clean Air Division | $ | 5,764 | $ | 2,028 | $ | 3,736 | $ | - | $ | 3,736 | ||||||
| Global OE Ride Performance Division | 1,593 | - | 1,593 | - | 1,593 | |||||||||||
| Global Aftermarket Division | 1,242 | - | 1,242 | - | 1,242 | |||||||||||
| Total Tenneco Inc. | $ | 8,599 | $ | 2,028 | $ | 6,571 | $ | - | $ | 6,571 | ||||||
| (1) U.S. 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 | |||||||||||||||||
| Currency | Value-add | ||||||||||||||||
| Impact on | Revenues | ||||||||||||||||
| Substrate | Value-add | Value-add | excluding | ||||||||||||||
| Revenues | Sales | Revenues | Revenues | Currency | |||||||||||||
| Global OE Clean Air Division | $ | 5,764 | $ | 2,028 | $ | 3,736 | $ | (101 | ) | $ | 3,837 | ||||||
| Global OE Ride Performance Division | 1,593 | - | 1,593 | (44 | ) | 1,637 | |||||||||||
| Global Aftermarket Division | 1,242 | - | 1,242 | (37 | ) | 1,279 | |||||||||||
| Total Tenneco Inc. | $ | 8,599 | $ | 2,028 | $ | 6,571 | $ | (182 | ) | $ | 6,753 | ||||||
| FY 2015 | |||||||||||||||||
| Currency | Value-add | ||||||||||||||||
| Impact on | Revenues | ||||||||||||||||
| Substrate | Value-add | Value-add | excluding | ||||||||||||||
| Revenues | Sales | Revenues | Revenues | Currency | |||||||||||||
| Global OE Clean Air Division | $ | 5,377 | $ | 1,888 | $ | 3,489 | $ | - | $ | 3,489 | |||||||
| Global OE Ride Performance Division | 1,545 | - | 1,545 | - | 1,545 | ||||||||||||
| Global Aftermarket Division | 1,259 | - | 1,259 | - | 1,259 | ||||||||||||
| Total Tenneco Inc. | $ | 8,181 | $ | 1,888 | $ | 6,293 | $ | - | $ | 6,293 | |||||||
| (1) U.S. 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 2017 | ||||||||||||||||||||||
| Global Segments | ||||||||||||||||||||||
| OE Ride | ||||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Total | |||||||||||||||||
| EBIT | $ | 94 | $ | 27 | $ | 42 | $ | 163 | $ | (42 | ) | $ | 121 | |||||||||
| Restructuring and related expenses | 9 | 3 | 2 | 14 | 1 | 15 | ||||||||||||||||
| Pension charges / Stock vesting (3) | - | - | - | - | 11 | 11 | ||||||||||||||||
| Adjusted EBIT | $ | 103 | $ | 30 | $ | 44 | $ | 177 | $ | (30 | ) | $ | 147 | |||||||||
| Q2 2017 | ||||||||||||||||||||||
| Global Segments | ||||||||||||||||||||||
| OE Ride | ||||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Total | |||||||||||||||||
| EBIT | $ | 106 | $ | 18 | $ | 54 | $ | 178 | $ | (151 | ) | $ | 27 | |||||||||
| Restructuring and related expenses | 12 | 2 | 1 | 15 | 2 | 17 | ||||||||||||||||
| Antitrust settlement accrual (4) | - | - | - | - | 132 | 132 | ||||||||||||||||
| Warranty settlement (5) | - | 7 | - | 7 | - | 7 | ||||||||||||||||
| Gain on sale of unconsolidated JV (6) | - | - | - | - | (5 | ) | (5 | ) | ||||||||||||||
| Adjusted EBIT | $ | 118 | $ | 27 | $ | 55 | $ | 200 | $ | (22 | ) | $ | 178 | |||||||||
| Q3 2017 | ||||||||||||||||||||||
| Global Segments | ||||||||||||||||||||||
| OE Ride | ||||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Total | |||||||||||||||||
| EBIT | $ | 100 | $ | 7 | $ | 50 | $ | 157 | $ | (23 | ) | $ | 134 | |||||||||
| Restructuring and related expenses | 4 | 14 | 2 | 20 | - | 20 | ||||||||||||||||
| Adjusted EBIT | $ | 104 | $ | 21 | $ | 52 | $ | 177 | $ | (23 | ) | $ | 154 | |||||||||
| Q4 2017 | ||||||||||||||||||||||
| Global Segments | ||||||||||||||||||||||
| OE Ride | ||||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Total | |||||||||||||||||
| EBIT | $ | 121 | $ | 9 | $ | 32 | $ | 162 | $ | (27 | ) | $ | 135 | |||||||||
| Restructuring and related expenses | 4 | 10 | 5 | 19 | 1 | 20 | ||||||||||||||||
| Goodwill impairment charge (7) | - | 7 | 4 | 11 | - | 11 | ||||||||||||||||
| Pension charges (3) | - | - | - | - | 2 | 2 | ||||||||||||||||
| Adjusted EBIT | $ | 125 | $ | 26 | $ | 41 | $ | 192 | $ | (24 | ) | $ | 168 | |||||||||
| (1) U.S. 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 the acceleration of restricted stock vesting in accordance with the long-term incentive plan. | ||||||||||||||||||||||
| (4) Charges related to establish a reserve for settlement costs necessary to resolve the company’s antitrust matters globally. | ||||||||||||||||||||||
| (5) Warranty settlement with customer. | ||||||||||||||||||||||
| (6) Gain on sale of unconsolidated JV. | ||||||||||||||||||||||
| (7) Goodwill impairment charges recorded in Europe and South America Ride Performance Division. | ||||||||||||||||||||||
| TENNECO INC. | ||||||||||||||||||||||
| RECONCILIATION OF GAAP(1) TO NON-GAAP EARNINGS MEASURES(2) | ||||||||||||||||||||||
|
Unaudited |
||||||||||||||||||||||
| (Millions) | ||||||||||||||||||||||
| FY 2017 | ||||||||||||||||||||||
| Global Segments | ||||||||||||||||||||||
| OE Ride | ||||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Total | |||||||||||||||||
| EBIT | $ | 421 | $ | 61 | $ | 178 | $ | 660 | $ | (243 | ) | $ | 417 | |||||||||
| Restructuring and related expenses | 29 | 29 | 10 | 68 | 4 | 72 | ||||||||||||||||
| Antitrust settlement accrual (3) | - | - | - | - | 132 | 132 | ||||||||||||||||
| Warranty settlement (4) | - | 7 | - | 7 | - | 7 | ||||||||||||||||
| Gain on sale of unconsolidated JV (5) | - | - | - | - | (5 | ) | (5 | ) | ||||||||||||||
| Goodwill impairment charge (6) | - | 7 | 4 | 11 | - | 11 | ||||||||||||||||
| Pension charges / Stock vesting (7) | - | - | - | - | 13 | 13 | ||||||||||||||||
| Adjusted EBIT | $ | 450 | $ | 104 | $ | 192 | $ | 746 | $ | (99 | ) | $ | 647 | |||||||||
| FY 2016 | ||||||||||||||||||||||
| Global Segments | ||||||||||||||||||||||
| OE Ride | ||||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Total | |||||||||||||||||
| EBIT | $ | 432 | $ | 97 | $ | 191 | $ | 720 | $ | (204 | ) | $ | 516 | |||||||||
| Restructuring and related expenses | 7 | 15 | 12 | 34 | 2 | 36 | ||||||||||||||||
| Pension charges (7) | - | - | - | - | 72 | 72 | ||||||||||||||||
| Adjusted EBIT | $ | 439 | $ | 112 | $ | 203 | $ | 754 | $ | (130 | ) | $ | 624 | |||||||||
| FY 2015 | ||||||||||||||||||||||
| Global Segments | ||||||||||||||||||||||
| OE Ride | ||||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Total | |||||||||||||||||
| EBIT | $ | 371 | $ | 63 | $ | 174 | $ | 608 | $ | (100 | ) | $ | 508 | |||||||||
| Restructuring and related expenses | 9 | 40 | 14 | 63 | - | 63 | ||||||||||||||||
| Pension charges (7) | - | - | - | - | 4 | 4 | ||||||||||||||||
| Adjusted EBIT | $ | 380 | $ | 103 | $ | 188 | $ | 671 | $ | (96 | ) | $ | 575 | |||||||||
| (1) U.S. 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 establish a reserve for settlement costs necessary to resolve the company’s antitrust matters globally. | ||
|
(4) Warranty settlement with customer. |
||
|
(5) Gain on sale of unconsolidated JV. |
||
|
(6) Goodwill impairment charges recorded in Europe and South America Ride Performance Division. |
||
|
(7) Charges related to Pension derisking and the acceleration of restricted stock vesting in accordance with the long-term incentive plan. |
||
| TENNECO INC. | |||||||||||||||||||||||||||
| RECONCILIATION OF GAAP (1) REVENUE AND EARNINGS TO NON-GAAP REVENUE AND EARNINGS MEASURES (2) | |||||||||||||||||||||||||||
|
Unaudited |
|||||||||||||||||||||||||||
| (Millions except percents) | |||||||||||||||||||||||||||
| Q1 2017 | |||||||||||||||||||||||||||
| Global Segments | |||||||||||||||||||||||||||
| OE Ride | |||||||||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Total | ||||||||||||||||||||||
| Net sales and operating revenues | $ | 1,555 | $ | 428 | $ | 309 | $ | 2,292 | $ | - | $ | 2,292 | |||||||||||||||
| Less: Substrate sales | 547 | - | - | 547 | - | 547 | |||||||||||||||||||||
| Value-add revenues | $ | 1,008 | $ | 428 | $ | 309 | $ | 1,745 | $ | - | $ | 1,745 | |||||||||||||||
| EBIT | $ | 94 | $ | 27 | $ | 42 | $ | 163 | $ | (42 | ) | $ | 121 | ||||||||||||||
| EBIT as a % of revenue | 6.0 | % | 6.3 | % | 13.6 | % | 7.1 | % | 5.3 | % | |||||||||||||||||
| EBIT as a % of value-add revenue | 9.3 | % | 6.3 | % | 13.6 | % | 9.3 | % | 6.9 | % | |||||||||||||||||
| Adjusted EBIT | $ | 103 | $ | 30 | $ | 44 | $ | 177 | $ | (30 | ) | $ | 147 | ||||||||||||||
| Adjusted EBIT as a % of revenue | 6.6 | % | 7.0 | % | 14.2 | % | 7.7 | % | 6.4 | % | |||||||||||||||||
| Adjusted EBIT as a % of value-add revenue | 10.2 | % | 7.0 | % | 14.2 | % | 10.1 | % | 8.4 | % | |||||||||||||||||
| Q2 2017 | |||||||||||||||||||||||||||
| Global Segments | |||||||||||||||||||||||||||
| OE Ride | |||||||||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Total | ||||||||||||||||||||||
| Net sales and operating revenues | $ | 1,539 | $ | 442 | $ | 336 | $ | 2,317 | $ | - | $ | 2,317 | |||||||||||||||
| Less: Substrate sales | 541 | - | - | 541 | - | 541 | |||||||||||||||||||||
| Value-add revenues | $ | 998 | $ | 442 | $ | 336 | $ | 1,776 | $ | - | $ | 1,776 | |||||||||||||||
| EBIT | $ | 106 | $ | 18 | $ | 54 | $ | 178 | $ | (151 | ) | $ | 27 | ||||||||||||||
| EBIT as a % of revenue | 6.9 | % | 4.1 | % | 16.1 | % | 7.7 | % | 1.2 | % | |||||||||||||||||
| EBIT as a % of value-add revenue | 10.6 | % | 4.1 | % | 16.1 | % | 10.0 | % | 1.5 | % | |||||||||||||||||
| Adjusted EBIT | $ | 118 | $ | 27 | $ | 55 | $ | 200 | $ | (22 | ) | $ | 178 | ||||||||||||||
| Adjusted EBIT as a % of revenue | 7.7 | % | 6.1 | % | 16.4 | % | 8.6 | % | 7.7 | % | |||||||||||||||||
| Adjusted EBIT as a % of value-add revenue | 11.8 | % | 6.1 | % | 16.4 | % | 11.3 | % | 10.0 | % | |||||||||||||||||
| Q3 2017 | |||||||||||||||||||||||||||
| Global Segments | |||||||||||||||||||||||||||
| OE Ride | |||||||||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Total | ||||||||||||||||||||||
| Net sales and operating revenues | $ | 1,495 | $ | 457 | $ | 322 | $ | 2,274 | $ | - | $ | 2,274 | |||||||||||||||
| Less: Substrate sales | 522 | - | - | 522 | - | 522 | |||||||||||||||||||||
| Value-add revenues | $ | 973 | $ | 457 | $ | 322 | $ | 1,752 | $ | - | $ | 1,752 | |||||||||||||||
| EBIT | $ | 100 | $ | 7 | $ | 50 | $ | 157 | $ | (23 | ) | $ | 134 | ||||||||||||||
| EBIT as a % of revenue | 6.7 | % | 1.5 | % | 15.5 | % | 6.9 | % | 5.9 | % | |||||||||||||||||
| EBIT as a % of value-add revenue | 10.3 | % | 1.5 | % | 15.5 | % | 9.0 | % | 7.6 | % | |||||||||||||||||
| Adjusted EBIT | $ | 104 | $ | 21 | $ | 52 | $ | 177 | $ | (23 | ) | $ | 154 | ||||||||||||||
| Adjusted EBIT as a % of revenue | 7.0 | % | 4.6 | % | 16.1 | % | 7.8 | % | 6.8 | % | |||||||||||||||||
| Adjusted EBIT as a % of value-add revenue | 10.7 | % | 4.6 | % | 16.1 | % | 10.1 | % | 8.8 | % | |||||||||||||||||
| Q4 2017 | |||||||||||||||||||||||||||
| Global Segments | |||||||||||||||||||||||||||
| OE Ride | |||||||||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Total | ||||||||||||||||||||||
| Net sales and operating revenues | $ | 1,627 | $ | 480 | $ | 284 | $ | 2,391 | $ | - | $ | 2,391 | |||||||||||||||
| Less: Substrate sales | 577 | - | - | 577 | - | 577 | |||||||||||||||||||||
| Value-add revenues | $ | 1,050 | $ | 480 | $ | 284 | $ | 1,814 | $ | - | $ | 1,814 | |||||||||||||||
| EBIT | $ | 121 | $ | 9 | $ | 32 | $ | 162 | $ | (27 | ) | $ | 135 | ||||||||||||||
| EBIT as a % of revenue | 7.4 | % | 1.9 | % | 11.3 | % | 6.8 | % | 5.6 | % | |||||||||||||||||
| EBIT as a % of value-add revenue | 11.5 | % | 1.9 | % | 11.3 | % | 8.9 | % | 7.4 | % | |||||||||||||||||
| Adjusted EBIT | $ | 125 | $ | 26 | $ | 41 | $ | 192 | $ | (24 | ) | $ | 168 | ||||||||||||||
| Adjusted EBIT as a % of revenue | 7.7 | % | 5.4 | % | 14.4 | % | 8.0 | % | 7.0 | % | |||||||||||||||||
| Adjusted EBIT as a % of value-add revenue | 11.9 | % | 5.4 | % | 14.4 | % | 10.6 | % | 9.3 | % | |||||||||||||||||
| (1) U.S. 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 2017 | |||||||||||||||||||||||||
| Global Segments | |||||||||||||||||||||||||
| OE Ride | |||||||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Total | ||||||||||||||||||||
| Net sales and operating revenues | $ | 6,216 | $ | 1,807 | $ | 1,251 | $ | 9,274 | $ | - | $ | 9,274 | |||||||||||||
| Less: Substrate sales | 2,187 | - | - | 2,187 | - | 2,187 | |||||||||||||||||||
| Value-add revenues | $ | 4,029 | $ | 1,807 | $ | 1,251 | $ | 7,087 | $ | - | $ | 7,087 | |||||||||||||
| EBIT | $ | 421 | $ | 61 | $ | 178 | $ | 660 | $ | (243 | ) | $ | 417 | ||||||||||||
| EBIT as a % of revenue | 6.8 | % | 3.4 | % | 14.2 | % | 7.1 | % | 4.5 | % | |||||||||||||||
| EBIT as a % of value-add revenue | 10.4 | % | 3.4 | % | 14.2 | % | 9.3 | % | 5.9 | % | |||||||||||||||
| Adjusted EBIT | $ | 450 | $ | 104 | $ | 192 | $ | 746 | $ | (99 | ) | $ | 647 | ||||||||||||
| Adjusted EBIT as a % of revenue | 7.2 | % | 5.8 | % | 15.3 | % | 8.0 | % | 7.0 | % | |||||||||||||||
| Adjusted EBIT as a % of value-add revenue | 11.2 | % | 5.8 | % | 15.3 | % | 10.5 | % | 9.1 | % | |||||||||||||||
| FY 2016 | |||||||||||||||||||||||||
| Global Segments | |||||||||||||||||||||||||
| OE Ride | |||||||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Total | ||||||||||||||||||||
| Net sales and operating revenues | $ | 5,764 | $ | 1,593 | $ | 1,242 | $ | 8,599 | $ | - | $ | 8,599 | |||||||||||||
| Less: Substrate sales | 2,028 | - | - | 2,028 | - | 2,028 | |||||||||||||||||||
| Value-add revenues | $ | 3,736 | $ | 1,593 | $ | 1,242 | $ | 6,571 | $ | - | $ | 6,571 | |||||||||||||
| EBIT | $ | 432 | $ | 97 | $ | 191 | $ | 720 | $ | (204 | ) | $ | 516 | ||||||||||||
| EBIT as a % of revenue | 7.5 | % | 6.1 | % | 15.4 | % | 8.4 | % | 6.0 | % | |||||||||||||||
| EBIT as a % of value-add revenue | 11.6 | % | 6.1 | % | 15.4 | % | 11.0 | % | 7.9 | % | |||||||||||||||
| Adjusted EBIT | $ | 439 | $ | 112 | $ | 203 | $ | 754 | $ | (130 | ) | $ | 624 | ||||||||||||
| Adjusted EBIT as a % of revenue | 7.6 | % | 7.0 | % | 16.3 | % | 8.8 | % | 7.3 | % | |||||||||||||||
| Adjusted EBIT as a % of value-add revenue | 11.8 | % | 7.0 | % | 16.3 | % | 11.5 | % | 9.5 | % | |||||||||||||||
| FY 2015 | |||||||||||||||||||||||||
| Global Segments | |||||||||||||||||||||||||
| OE Ride | |||||||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Total | ||||||||||||||||||||
| Net sales and operating revenues | $ | 5,377 | $ | 1,545 | $ | 1,259 | $ | 8,181 | $ | - | $ | 8,181 | |||||||||||||
| Less: Substrate sales | 1,888 | - | - | 1,888 | - | 1,888 | |||||||||||||||||||
| Value-add revenues | $ | 3,489 | $ | 1,545 | $ | 1,259 | $ | 6,293 | $ | - | $ | 6,293 | |||||||||||||
| EBIT | $ | 371 | $ | 63 | $ | 174 | $ | 608 | $ | (100 | ) | $ | 508 | ||||||||||||
| EBIT as a % of revenue | 6.9 | % | 4.1 | % | 13.8 | % | 7.4 | % | 6.2 | % | |||||||||||||||
| EBIT as a % of value-add revenue | 10.6 | % | 4.1 | % | 13.8 | % | 9.7 | % | 8.1 | % | |||||||||||||||
| Adjusted EBIT | $ | 380 | $ | 103 | $ | 188 | $ | 671 | $ | (96 | ) | $ | 575 | ||||||||||||
| Adjusted EBIT as a % of revenue | 7.1 | % | 6.7 | % | 14.9 | % | 8.2 | % | 7.0 | % | |||||||||||||||
| Adjusted EBIT as a % of value-add revenue | 10.9 | % | 6.7 | % | 14.9 | % | 10.7 | % | 9.1 | % | |||||||||||||||
| (1) U.S. 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 2017 | |||||||||||||||||||||
| Global Segments | |||||||||||||||||||||
| OE Ride | |||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Total | ||||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests | $ | 94 | $ | 27 | $ | 42 | $ | 163 | $ | (42 | ) | $ | 121 | ||||||||
| Depreciation and amortization of other intangibles | 33 | 15 | 4 | 52 | - | 52 | |||||||||||||||
| Total EBITDA including noncontrolling interests (2) | $ | 127 | $ | 42 | $ | 46 | $ | 215 | $ | (42 | ) | $ | 173 | ||||||||
| Q2 2017 | |||||||||||||||||||||
| Global Segments | |||||||||||||||||||||
| OE Ride | |||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Total | ||||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests | $ | 106 | $ | 18 | $ | 54 | $ | 178 | $ | (151 | ) | $ | 27 | ||||||||
| Depreciation and amortization of other intangibles | 35 | 15 | 5 | 55 | - | 55 | |||||||||||||||
| Total EBITDA including noncontrolling interests (2) | $ | 141 | $ | 33 | $ | 59 | $ | 233 | $ | (151 | ) | $ | 82 | ||||||||
| Q3 2017 | |||||||||||||||||||||
| Global Segments | |||||||||||||||||||||
| OE Ride | |||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Total | ||||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests | $ | 100 | $ | 7 | $ | 50 | $ | 157 | $ | (23 | ) | $ | 134 | ||||||||
| Depreciation and amortization of other intangibles | 36 | 17 | 5 | 58 | - | 58 | |||||||||||||||
| Total EBITDA including noncontrolling interests (2) | $ | 136 | $ | 24 | $ | 55 | $ | 215 | $ | (23 | ) | $ | 192 | ||||||||
| Q4 2017 | |||||||||||||||||||||
| Global Segments | |||||||||||||||||||||
| OE Ride | |||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Total | ||||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests | $ | 121 | $ | 9 | $ | 32 | $ | 162 | $ | (27 | ) | $ | 135 | ||||||||
| Depreciation and amortization of other intangibles | 37 | 17 | 5 | 59 | - | 59 | |||||||||||||||
| Total EBITDA including noncontrolling interests (2) | $ | 158 | $ | 26 | $ | 37 | $ | 221 | $ | (27 | ) | $ | 194 | ||||||||
| (1) U.S. 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 2017 | ||||||||||||||||||||||
| Global Segments | ||||||||||||||||||||||
| OE Ride | ||||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Total | |||||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests | $ | 421 | $ | 61 | $ | 178 | $ | 660 | $ | (243 | ) | $ | 417 | |||||||||
| Depreciation and amortization of other intangibles | 141 | 64 | 19 | 224 | - | 224 | ||||||||||||||||
| Total EBITDA including noncontrolling interests (2) | $ | 562 | $ | 125 | $ | 197 | $ | 884 | $ | (243 | ) | $ | 641 | |||||||||
| FY 2016 | ||||||||||||||||||||||
| Global Segments | ||||||||||||||||||||||
| OE Ride | ||||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Total | |||||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests | $ | 432 | $ | 97 | $ | 191 | $ | 720 | $ | (204 | ) | $ | 516 | |||||||||
| Depreciation and amortization of other intangibles | 131 | 57 | 24 | 212 | - | 212 | ||||||||||||||||
| Total EBITDA including noncontrolling interests (2) | $ | 563 | $ | 154 | $ | 215 | $ | 932 | $ | (204 | ) | $ | 728 | |||||||||
| FY 2015 | ||||||||||||||||||||||
| Global Segments | ||||||||||||||||||||||
| OE Ride | ||||||||||||||||||||||
| OE Clean Air | Performance | Aftermarket | Total | Other | Total | |||||||||||||||||
| EBIT, Earnings before interest expense, income taxes and noncontrolling interests | $ | 371 | $ | 63 | $ | 174 | $ | 608 | $ | (100 | ) | $ | 508 | |||||||||
| Depreciation and amortization of other intangibles | 123 | 55 | 25 | 203 | - | 203 | ||||||||||||||||
| Total EBITDA including noncontrolling interests (2) | $ | 494 | $ | 118 | $ | 199 | $ | 811 | $ | (100 | ) | $ | 711 | |||||||||
| (1) U.S. 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. | ||||||||||||||||||||||
