-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JkBVDRV+OdhqTp72JNu6/3bEn35FV8qBs8TV3XRWFlPEom9HXuRRAReh63ng2GLn c8MhaxZk7hoCwD+KYDJu2Q== 0000950137-97-002313.txt : 19970630 0000950137-97-002313.hdr.sgml : 19970630 ACCESSION NUMBER: 0000950137-97-002313 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970627 SROS: CSX SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: TENNECO INC /DE CENTRAL INDEX KEY: 0001024725 STANDARD INDUSTRIAL CLASSIFICATION: FARM MACHINERY & EQUIPMENT [3523] IRS NUMBER: 760515284 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12387 FILM NUMBER: 97631718 BUSINESS ADDRESS: STREET 1: 1275 KING STREET CITY: GREENWICH STATE: CT ZIP: 06831 BUSINESS PHONE: 2038631000 MAIL ADDRESS: STREET 1: 1010 MILAM STREET STREET 2: ROOM T 2560B CITY: HOUSTON STATE: TX ZIP: 77002 FORMER COMPANY: FORMER CONFORMED NAME: NEW TENNECO INC DATE OF NAME CHANGE: 19961011 11-K 1 ANNUAL REPORT 1 ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------------ FORM 11-K ------------------------ [X] ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 1996 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER 1-12387 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: TENNECO INC. 1275 KING STREET GREENWICH, CONNECTICUT 06831 ================================================================================ 2 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Tenneco Benefits Committee: We have audited the accompanying statement of net assets available for plan benefits of the Tenneco Thrift Plan For Hourly Employees as of December 31, 1996, and the related statement of changes in net assets available for plan benefits for the period from inception (April 1, 1996) through December 31, 1996. These financial statements and the schedules referred to below are the responsibility of the Tenneco Benefits Committee. Our responsibility is to express an opinion on these financial statements and schedules based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of the Tenneco Thrift Plan For Hourly Employees as of December 31, 1996, and the changes in net assets available for plan benefits for the period from inception (April 1, 1996) through December 31, 1996, in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of assets held for investment purposes as of December 31, 1996, included as Schedule I, reportable transactions -- series of transactions for the period from inception (April 1, 1996) through December 31, 1996, included as Schedule II, and reportable transactions -- single transactions for the period from inception (April 1, 1996) through December 31, 1996, included as Schedule III, are presented for purposes of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. ARTHUR ANDERSEN LLP Houston, Texas June 20, 1997 2 3 TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS DECEMBER 31, 1996
MARKET SHARES COST VALUE ------ ---- ------ INVESTMENTS: Corporate securities -- Tenneco Inc. common stock.......................... 137,232 $ 5,674,959 $ 6,192,594 El Paso Natural Gas Company common stock........... 12,076 503,073 609,841 Newport News Shipbuilding Inc. common stock........ 25,970 382,908 389,550 ----------- ----------- 6,560,940 7,191,985 Collective trust funds -- BZW Barclays Equity Index Fund..................... 162,310 3,175,816 3,181,878 BZW Barclays U.S. Debt Market Index Fund........... 150,322 1,793,249 1,783,655 ----------- ----------- 4,969,065 4,965,533 Registered investment companies -- Fidelity Growth Company Fund....................... 63,968 2,706,927 2,588,137 INVESCO Value Trust Total Return Fund.............. 11,668 275,895 283,529 Putnam New Opportunities Fund...................... 55,325 2,329,047 2,247,853 Templeton Foreign Fund............................. 25,499 255,163 264,170 ----------- ----------- 5,567,032 5,383,689 Money market fund..................................... 2,335,726 2,335,726 2,335,726 Participant loans receivable.......................... 566,866 566,866 566,866 ----------- ----------- Total investments................................ $19,999,629 20,443,799 =========== ----------- RECEIVABLES: Employees' contributions.............................. 241,875 Employers' contributions.............................. 117,445 Accrued interest...................................... 13,189 OTHER................................................... (7,777) ----------- NET ASSETS AVAILABLE FOR PLAN BENEFITS.................. $20,808,531 ===========
The accompanying notes to financial statements are an integral part of this financial statement. 3 4 TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS FOR THE PERIOD FROM INCEPTION (APRIL 1, 1996) THROUGH DECEMBER 31, 1996 NET ASSETS AVAILABLE FOR PLAN BENEFITS, beginning of period.................................................... $ -- ----------- ADD: Dividends -- Tenneco Inc............................................ 64,025 Registered investment companies........................ 118,864 Interest.................................................. 22,976 ----------- 205,865 Net depreciation in fair value of investments............. (75,710) ----------- Net investment income................................ 130,155 Contributions -- Employees.............................................. 2,852,360 Employers.............................................. 3,319,046 Rollovers.............................................. 5,001,463 ----------- 11,172,869 Repayment of loan interest................................ 4,874 Transfer from other plans (Note 4)........................ 9,657,825 Other..................................................... 12,333 ----------- Total additions...................................... 20,978,056 ----------- DEDUCT: Withdrawals............................................... 169,525 ----------- Total deductions..................................... 169,525 ----------- NET ASSETS AVAILABLE FOR PLAN BENEFITS, end of period....... $20,808,531 ===========
The accompanying notes to financial statements are an integral part of this financial statement. 4 5 TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1996 1. DESCRIPTION OF THE HOURLY THRIFT PLAN: The following description of the Tenneco Thrift Plan For Hourly Employees (the Hourly Thrift Plan) provides only general information. Participants should refer to the Hourly Thrift Plan for a more complete description of the Hourly Thrift Plan's provisions. REORGANIZATION OF SPONSOR During 1996, Tenneco Inc. (Old Tenneco) undertook a series of transactions to reorganize its historical businesses (the Transaction). Prior to the Transaction, Old Tenneco restructured its businesses such that the assets, liabilities and operations of its automotive (Tenneco Automotive), packaging (Tenneco Packaging) and administrative services businesses (collectively, the Industrial Business) were owned and operated by New Tenneco Inc. (New Tenneco), a new wholly owned subsidiary of Old Tenneco, and the assets, liabilities and operations of its shipbuilding business (the Shipbuilding Business) were owned and operated by Newport News Shipbuilding Inc. (Newport News), another wholly owned subsidiary of Old Tenneco. On December 11, 1996, Old Tenneco spunoff New Tenneco and Newport News by distributing all of the common stock of each company to Old Tenneco's shareowners (the Distributions). Following the Distributions, on December 12, 1996, a subsidiary of El Paso Natural Gas Company (El Paso) was merged (the Merger) into Old Tenneco, which then consisted solely of Old Tenneco's remaining active businesses, principally in the energy industry, and certain discontinued operations (the Energy Business), with Old Tenneco surviving the Merger as a subsidiary of El Paso. Immediately subsequent to the Merger, Old Tenneco was renamed "El Paso Tennessee Pipeline Co." and New Tenneco was renamed "Tenneco Inc." In connection with the Distributions, one share of New Tenneco common stock was issued for each share of Old Tenneco common stock and one share of Newport News common stock was issued for each five shares of Old Tenneco common stock. Also, in connection with the Merger, Old Tenneco shareowners received .093 shares of El Paso common stock for each share of Old Tenneco common stock. Accordingly, the shares of Old Tenneco common stock held in the accounts of the Hourly Thrift Plan participants were exchanged for shares of New Tenneco, Newport News and El Paso, and New Tenneco succeeded Old Tenneco as sponsor of the Hourly Thrift Plan. For purposes of these financial statements, "Tenneco Inc." or "Employers" refers to Old Tenneco and its subsidiaries which have adopted the Hourly Thrift Plan prior to the Transaction, and to Tenneco Inc., formerly known as New Tenneco Inc., and its subsidiaries which have continued sponsorship of the Hourly Thrift Plan subsequent to the Transaction. GENERAL The Hourly Thrift Plan was established effective as of April 1, 1996, and was amended and restated effective December 1, 1996. The Hourly Thrift Plan is a defined contribution plan subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended. The Hourly Thrift Plan covers eligible employees of the Employers. CONTRIBUTIONS Eligible employees electing to participate in the Hourly Thrift Plan may make salary deferral contributions by payroll deduction of not less than 1 percent nor greater than 8 percent of compensation, as defined, with such contributions limited to $9,500 for 1996. Effective with the merger of the Tenneco Automotive Hourly Employees Savings Plan (the Automotive Plan) into the Hourly Thrift Plan (see Note 4), the Employers contribute on behalf of Tenneco Automotive participants a matching contribution equal to the following 5 6 percentage of the affected participants' total salary deferral contribution, based on the number of years of participation:
YEARS OF MATCHING PARTICIPATION PERCENTAGE ------------- ---------- Less than 1.......................................... 30% 1 but less than 2.................................... 40 2 or more............................................ 50
The Employers contribute on behalf of all other participants a matching contribution equal to 100 percent of the participants' salary deferral contributions not to exceed 3 percent of the participants' compensation. The Employers matching contributions are made in the form of Tenneco Inc. common stock. The Employers matching contributions and the related earnings must remain in the form of Tenneco Inc. common stock until the participant reaches age 55 or terminates employment and requests a total plan distribution. VESTING Participants are 100 percent vested in their salary deferral contributions made to the Hourly Thrift Plan. The Employers matching contributions become vested in accordance with the following schedule:
YEARS VESTED OF SERVICE PERCENTAGE - ---------- ---------- 1..................................................... 20% 2..................................................... 40 3..................................................... 60 4..................................................... 80 5..................................................... 100
Upon attainment of age 65, or termination of employment due to death or total disability, a participant will become 100 percent vested in the Employers matching contributions. Forfeited nonvested accounts will be applied to reduce future Employers matching contributions. WITHDRAWALS AND PARTICIPANT LOANS Upon retirement or other termination of employment, the participant may receive the value of the vested interest in his account as a lump-sum distribution. A participant who has attained age 55 may elect an in-service withdrawal. If a participant has not attained age 59- 1/2, he may elect to withdraw all or part of his account balance, reduced by the portion of his account balance attributable to salary deferral contributions. A participant may borrow from his account a minimum of $1,000 up to a maximum equal to the lesser of $50,000 minus the highest outstanding loan balance during the last 12 months, or 50 percent of his account balance. Loan terms range from 1 to 4- 1/2 years. The loans are secured by the balance in the participant's account and bear interest at a rate equal to the highest share-secured interest rate charged by the Tenneco Federal Credit Union. The average interest rate for new loans was 7.75 percent during 1996. Principal and interest are paid through payroll deductions. ADMINISTRATION The Hourly Thrift Plan is administered by the Tenneco Benefits Committee (the Committee). NationsBank (the Trustee) is the Trustee of the Hourly Thrift Plan Trust (the Trust). 6 7 2. SUMMARY OF ACCOUNTING POLICIES: BASIS OF ACCOUNTING The financial statements of the Hourly Thrift Plan are presented on the accrual basis of accounting. The investments of the Hourly Thrift Plan are reported at quoted market value. EARNINGS Individual participants' accounts are credited daily with investment earnings and losses. Investment earnings and losses are credited based upon the number of shares held in an individual participant's account and the fair market value per share at the close of business each day. EXPENSES Trustee and other administrative expenses are paid by the Employers or from earnings attributable to unallocated amounts. Such expenses may also be paid from the Trust in the event the Employers' payments and such earnings are insufficient to meet such expenses. Brokerage fees, transfer taxes, individual income taxes and all other charges and expenses resulting from purchases or sales of securities are charged to the accounts of the participants. In all other cases, including any situation where the allocation of the charge to a participant within a particular investment option is undeterminable, expenses are charged proportionately against all the accounts within that investment option. Any other expenses chargeable against the entire Trust are charged to each individual account in the proportion that such account bears to the total amount of the Trust. USE OF ESTIMATES The preparation of the financial statements in conformity with generally accepted accounting principles requires management to use estimates and assumptions that affect the accompanying financial statements and disclosures. Actual results could differ from those estimates. 3. INVESTMENT OPTIONS: Participants must invest contributions and other cash amounts credited to their accounts in one or more of the following: Tenneco Inc. Common Stock. BZW Barclays Equity Index Fund -- Fund seeks to earn high returns by investing in a broad array of established U.S. companies. BZW Barclays U.S. Debt Market Index Fund -- Fund seeks to earn moderate returns with a moderate level of risk by investing in a diversified portfolio of high-quality U.S. Government, corporate, mortgage-backed and asset-backed bonds. Fidelity Growth Company Fund -- Fund seeks capital appreciation by investing primarily in common stock and securities convertible into common stock of those companies believed to have above-average growth. INVESCO Value Trust Total Return Fund -- Fund seeks reasonably consistent total returns over a variety of market cycles by investing in a combination of equity securities and fixed income securities. Putnam New Opportunities Fund -- Fund seeks to achieve long-term capital appreciation primarily through common stock investments in companies in economic sectors with above-average prospects for growth. Templeton Foreign Fund -- Fund invests in stocks and debt obligations of companies and governments outside the U.S. 7 8 Money Market Fund -- Invests in Nations Cash Reserves, which seek to preserve principal value and maintain a high degree of liquidity while providing current income. Shares of Newport News and El Paso common stock received in connection with the Distributions and Merger are held in separate funds; however, participants cannot direct contributions or investment transfers to these funds. See Exhibits 1 and 2 for individual fund information. 4. TRANSFER FROM OTHER PLANS: Effective November 30, 1996, the Automotive Plan was merged into the Hourly Thrift Plan. 5. ACQUISITIONS: During 1996, Tenneco Packaging acquired Amoco Foam Products Company (Amoco Foam). As agreed to in the purchase agreement, the former Amoco Foam hourly employees were allowed to participate in the Hourly Thrift Plan effective October 1, 1996. Employers' contributions in the statement of changes in net assets available for plan benefits includes a one-time special contribution related to these former Amoco Foam employees in the amount of $68,702 to make up for the period from date of acquisition to October 1, 1996. Beginning October 1, 1996, and ending October 31, 1996, former Amoco Foam hourly employees could have made an elective transfer of their account balances in the Amoco Employee Savings Plan (the Amoco Foam Plan) into the Hourly Thrift Plan, provided that the former Amoco Foam hourly employees did not have more than one loan outstanding under the Amoco Foam Plan. During 1995, Tenneco Packaging acquired the Mobil Plastics Division of Mobil Oil Corporation (Mobil). As agreed to in the purchase agreement, the former Mobil hourly employees were not allowed to participate in the Hourly Thrift Plan until April 1, 1996. In order to compensate this group of employees for the matching contribution for which they were not eligible during the period from November 17, 1995, through April 1, 1996, Tenneco Packaging made a one-time special contribution equal to 6 percent of the compensation recognized under their old plan during that period. Employers' contributions in the statement of changes in net assets available for plan benefits includes the one-time special contribution of $1,644,063. Beginning April 1, 1996, and ending September 27, 1996, former Mobil hourly employees could have made an elective transfer of their account balances in the Mobil Employee Savings Plan (the Mobil Plan) into the Hourly Thrift Plan provided, however, that no elective transfer was permitted if the former Mobil hourly employees had a loan outstanding under the Mobil Plan. 6. FEDERAL INCOME TAXES: The Hourly Thrift Plan has not been submitted to the Internal Revenue Service for an initial determination letter. However, the plan administrator and the Hourly Thrift Plan's legal counsel believe that the Hourly Thrift Plan is currently designed and being operated in compliance with the applicable requirements of the Internal Revenue Code. Therefore, they believe that the Hourly Thrift Plan was qualified and the related trust was tax-exempt as of the financial statement date. 7. TERMINATION OF THE HOURLY THRIFT PLAN: Although the participating Employers intend to continue the Hourly Thrift Plan indefinitely, they reserve the right to terminate the Hourly Thrift Plan or withdraw from participation in the Hourly Thrift Plan. Any assets which are not allocated to the accounts of participants upon the complete termination of the Hourly Thrift Plan or complete discontinuance of contributions will be allocated among all of the participants' accounts pro rata on the basis of their account balance at the date of termination. 8 9 EXHIBIT 1 TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION DECEMBER 31, 1996
PARTICIPANT-DIRECTED INVESTMENT ------------------------------------------------------------------------------------- NEWPORT NEWS BZW EL PASO SHIPBUILDING BARCLAYS FIDELITY TENNECO INC. NATURAL GAS INC. BZW BARCLAYS U.S. DEBT GROWTH COMMON COMPANY COMMON EQUITY INDEX MARKET INDEX COMPANY STOCK COMMON STOCK STOCK FUND FUND FUND ------------ ------------ ------------ ------------ ------------ -------- INVESTMENTS: Corporate securities -- Tenneco Inc. common stock............... $3,588,184 $ -- $ -- $ -- $ -- $ -- El Paso Natural Gas Company common stock.................................. -- 609,841 -- -- -- -- Newport News Shipbuilding Inc. common stock.................................. -- -- 389,550 -- -- -- ---------- -------- -------- ---------- ---------- ---------- 3,588,184 609,841 389,550 -- -- -- Collective trust funds -- BZW Barclays Equity Index Fund.......... -- -- -- 3,181,878 -- -- BZW Barclays U.S. Debt Market Index Fund................................... -- -- -- -- 1,783,655 -- ---------- -------- -------- ---------- ---------- ---------- -- -- -- 3,181,878 1,783,655 -- Registered investment companies -- Fidelity Growth Company Fund............ -- -- -- -- -- 2,588,137 INVESCO Value Trust Total Return Fund... -- -- -- -- -- -- Putnam New Opportunities Fund........... -- -- -- -- -- -- Templeton Foreign Fund.................. -- -- -- -- -- -- ---------- -------- -------- ---------- ---------- ---------- -- -- -- -- -- 2,588,137 Money market fund......................... 99,596 15,864 11,992 -- -- -- Participant loans receivable.............. -- -- -- -- -- -- ---------- -------- -------- ---------- ---------- ---------- Total investments.................... 3,687,780 625,705 401,542 3,181,878 1,783,655 2,588,137 RECEIVABLES: Employees' contributions.................. 33,889 -- -- 45,800 27,987 45,506 Employers' contributions.................. -- -- -- -- -- -- Accrued interest.......................... 237 38 29 -- -- -- OPTION TRANSFERS RECEIVABLE (PAYABLE)...... 5,145 -- -- 1,251 306 955 OTHER...................................... -- -- -- -- -- -- ---------- -------- -------- ---------- ---------- ---------- NET ASSETS AVAILABLE FOR PLAN BENEFITS..... $3,727,051 $625,743 $401,571 $3,228,929 $1,811,948 $2,634,598 ========== ======== ======== ========== ========== ========== PARTICIPANT-DIRECTED INVESTMENT ------------------------------------------------------------------- INVESCO PUTNAM VALUE TRUST NEW TEMPLETON MONEY TOTAL RETURN OPPORTUNITIES FOREIGN MARKET PARTICIPANT FUND FUND FUND FUND LOANS ------------ ------------- --------- ------ ----------- INVESTMENTS: Corporate securities -- Tenneco Inc. common stock............... $ -- $ -- $ -- $ -- $ -- El Paso Natural Gas Company common stock.................................. -- -- -- -- -- Newport News Shipbuilding Inc. common stock.................................. -- -- -- -- -- -------- ---------- -------- ---------- -------- -- -- -- -- -- Collective trust funds -- BZW Barclays Equity Index Fund.......... -- -- -- -- -- BZW Barclays U.S. Debt Market Index Fund................................... -- -- -- -- -- -------- ---------- -------- ---------- -------- -- -- -- -- -- Registered investment companies -- Fidelity Growth Company Fund............ -- -- -- -- -- INVESCO Value Trust Total Return Fund... 283,529 -- -- -- -- Putnam New Opportunities Fund........... -- 2,247,853 -- -- -- Templeton Foreign Fund.................. -- -- 264,170 -- -- -------- ---------- -------- ---------- -------- 283,529 2,247,853 264,170 -- -- Money market fund......................... -- -- -- 2,092,529 -- Participant loans receivable.............. -- -- -- -- 566,866 -------- ---------- -------- ---------- -------- Total investments.................... 283,529 2,247,853 264,170 2,092,529 566,866 RECEIVABLES: Employees' contributions.................. 7,900 44,673 6,165 29,955 -- Employers' contributions.................. -- -- -- -- -- Accrued interest.......................... 1,077 -- -- 8,346 1,820 OPTION TRANSFERS RECEIVABLE (PAYABLE)...... 193 1,868 203 1,785 (11,706) OTHER...................................... -- -- -- -- -- -------- ---------- -------- ---------- -------- NET ASSETS AVAILABLE FOR PLAN BENEFITS..... $292,699 $2,294,394 $270,538 $2,132,615 $556,980 ======== ========== ======== ========== ======== NONPARTICIPANT- DIRECTED INVESTMENTS ----------------------- TENNECO INC. COMMON CLEARING STOCK ACCOUNT TOTAL ------------ -------- ----- INVESTMENTS: Corporate securities -- Tenneco Inc. common stock............... $2,604,410 $ -- $ 6,192,594 El Paso Natural Gas Company common stock.................................. -- -- 609,841 Newport News Shipbuilding Inc. common stock.................................. -- -- 389,550 ---------- ------- ----------- 2,604,410 -- 7,191,985 Collective trust funds -- BZW Barclays Equity Index Fund.......... -- -- 3,181,878 BZW Barclays U.S. Debt Market Index Fund................................... -- -- 1,783,655 ---------- ------- ----------- -- -- 4,965,533 Registered investment companies -- Fidelity Growth Company Fund............ -- -- 2,588,137 INVESCO Value Trust Total Return Fund... -- -- 283,529 Putnam New Opportunities Fund........... -- -- 2,247,853 Templeton Foreign Fund.................. -- -- 264,170 ---------- ------- ----------- -- -- 5,383,689 Money market fund......................... 72,289 43,456 2,335,726 Participant loans receivable.............. -- -- 566,866 ---------- ------- ----------- Total investments.................... 2,676,699 43,456 20,443,799 RECEIVABLES: Employees' contributions.................. -- -- 241,875 Employers' contributions.................. 117,445 -- 117,445 Accrued interest.......................... 178 1,464 13,189 OPTION TRANSFERS RECEIVABLE (PAYABLE)...... -- -- -- OTHER...................................... -- (7,777) (7,777) ---------- ------- ----------- NET ASSETS AVAILABLE FOR PLAN BENEFITS..... $2,794,322 $37,143 $20,808,531 ========== ======= ===========
This exhibit is an integral part of the accompanying financial statements. 9 10 EXHIBIT 2 TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION FOR THE PERIOD FROM INCEPTION (APRIL 1, 1996) THROUGH DECEMBER 31, 1996
PARTICIPANT-DIRECTED INVESTMENT ------------------------------------------------------------------------------------- NEWPORT NEWS EL PASO SHIPBUILDING BZW BARCLAYS FIDELITY TENNECO INC. NATURAL GAS INC. BZW BARCLAYS U.S. DEBT GROWTH COMMON COMPANY COMMON EQUITY INDEX MARKET INDEX COMPANY STOCK COMMON STOCK STOCK FUND FUND FUND ------------ ------------ ------------ ------------ ------------ -------- NET ASSETS AVAILABLE FOR PLAN BENEFITS, beginning of period.................. $ -- $ -- $ -- $ -- $ -- $ -- ADD: Dividends -- Tenneco Inc. common stock.......... 14,357 -- -- -- -- -- Registered investment companies.... -- -- -- -- -- 92,675 Interest............................. 3,141 38 29 -- -- -- ---------- -------- -------- ---------- ---------- ---------- 17,498 38 29 -- -- 92,675 Net appreciation (depreciation) in fair value of investments.......... 45,157 54,342 (25,970) 7,748 (9,519) (117,851) ---------- -------- -------- ---------- ---------- ---------- Net investment income (loss)..... 62,655 54,380 (25,941) 7,748 (9,519) (25,176) Contributions -- Employees.......................... 510,091 -- -- 419,774 261,656 512,821 Employers.......................... -- -- -- -- -- -- Rollovers.......................... 1,483,881 -- -- 463,180 147,994 418,222 ---------- -------- -------- ---------- ---------- ---------- 1,993,972 -- -- 882,954 409,650 931,043 Repayment of loan interest........... -- -- -- -- -- -- Distributions and Merger............. (573,688) 573,892 429,279 -- -- -- Transfer from other plans (Note 4)... 2,272,965 -- -- 2,341,617 1,418,386 1,735,781 Other................................ -- -- -- -- -- -- ---------- -------- -------- ---------- ---------- ---------- Total additions.................. 3,755,904 628,272 403,338 3,232,319 1,818,517 2,641,648 ---------- -------- -------- ---------- ---------- ---------- DEDUCT: Withdrawals.......................... 18,123 1,415 962 13,901 3,488 11,244 ---------- -------- -------- ---------- ---------- ---------- Total deductions................. 18,123 1,415 962 13,901 3,488 11,244 OPTION TRANSFERS...................... (10,730) (1,114) (805) 10,511 (3,081) 4,194 ---------- -------- -------- ---------- ---------- ---------- NET ASSETS AVAILABLE FOR PLAN BENEFITS, end of period.............. $3,727,051 $625,743 $401,571 $3,228,929 $1,811,948 $2,634,598 ========== ======== ======== ========== ========== ========== PARTICIPANT-DIRECTED INVESTMENT ------------------------------------------------------------------- INVESCO PUTNAM VALUE TRUST NEW TEMPLETON MONEY TOTAL RETURN OPPORTUNITIES FOREIGN MARKET PARTICIPANT FUND FUND FUND FUND LOANS ------------ ------------- --------- ------ ----------- NET ASSETS AVAILABLE FOR PLAN BENEFITS, beginning of period.................. $ -- $ -- $ -- $ -- $ -- ADD: Dividends -- Tenneco Inc. common stock.......... -- -- -- -- -- Registered investment companies.... 4,751 15,453 5,985 -- -- Interest............................. -- -- -- 14,816 -- -------- ---------- -------- ---------- -------- 4,751 15,453 5,985 14,816 -- Net appreciation (depreciation) in fair value of investments.......... 7,910 (80,706) 9,373 -- -- -------- ---------- -------- ---------- -------- Net investment income (loss)..... 12,661 (65,253) 15,358 14,816 -- Contributions -- Employees.......................... 136,149 556,509 109,048 346,312 -- Employers.......................... -- -- -- -- -- Rollovers.......................... 133,088 757,713 160,453 1,123,652 313,280 -------- ---------- -------- ---------- -------- 269,237 1,314,222 269,501 1,469,964 313,280 Repayment of loan interest........... -- -- -- -- 4,874 Distributions and Merger............. -- -- -- -- -- Transfer from other plans (Note 4)... -- 1,007,337 -- 751,529 110,582 Other................................ -- -- -- -- -- -------- ---------- -------- ---------- -------- Total additions.................. 281,898 2,256,306 284,859 2,236,309 428,736 -------- ---------- -------- ---------- -------- DEDUCT: Withdrawals.......................... 5,364 19,952 6,249 10,634 -- -------- ---------- -------- ---------- -------- Total deductions................. 5,364 19,952 6,249 10,634 -- OPTION TRANSFERS...................... 16,165 58,040 (8,072) (93,060) 128,244 -------- ---------- -------- ---------- -------- NET ASSETS AVAILABLE FOR PLAN BENEFITS, end of period.............. $292,699 $2,294,394 $270,538 $2,132,615 $556,980 ======== ========== ======== ========== ======== NONPARTICIPANT- DIRECTED INVESTMENTS ------------------------ TENNECO INC. COMMON CLEARING STOCK ACCOUNT TOTAL ------------ -------- ----- NET ASSETS AVAILABLE FOR PLAN BENEFITS, beginning of period.................. $ -- $ -- $ -- ADD: Dividends -- Tenneco Inc. common stock.......... 49,668 -- 64,025 Registered investment companies.... -- -- 118,864 Interest............................. 2,353 2,599 22,976 ---------- --------- ----------- 52,021 2,599 205,865 Net appreciation (depreciation) in fair value of investments.......... 33,806 -- (75,710) ---------- --------- ----------- Net investment income (loss)..... 85,827 2,599 130,155 Contributions -- Employees.......................... -- -- 2,852,360 Employers.......................... 3,319,046 -- 3,319,046 Rollovers.......................... -- -- 5,001,463 ---------- --------- ----------- 3,319,046 -- 11,172,869 Repayment of loan interest........... -- -- 4,874 Distributions and Merger............. (429,483) -- -- Transfer from other plans (Note 4)... -- 19,628 9,657,825 Other................................ -- 12,333 12,333 ---------- --------- ----------- Total additions.................. 2,975,390 34,560 20,978,056 ---------- --------- ----------- DEDUCT: Withdrawals.......................... 78,193 -- 169,525 ---------- --------- ----------- Total deductions................. 78,193 -- 169,525 OPTION TRANSFERS...................... (102,875) 2,583 -- ---------- --------- ----------- NET ASSETS AVAILABLE FOR PLAN BENEFITS, end of period.............. 2,794,322 $ 37,143 $20,808,531 ========== ========= ===========
This exhibit is an integral part of the accompanying financial statements. 10 11 SCHEDULE I TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1996
SHARES OR CURRENT IDENTITY OF ISSUE DESCRIPTION OF ASSET FACE VALUE COST VALUE ----------------- -------------------- ---------- ---- ------- CORPORATE SECURITIES: Tenneco Inc.*........................ Tenneco Inc. common stock 137,232 $ 5,674,959 $ 6,192,594 El Paso Natural Gas Company.......... El Paso Natural Gas Company common stock 12,076 503,073 609,841 Newport News Shipbuilding Inc........ Newport News Shipbuilding Inc. common stock 25,970 382,908 389,550 ----------- ----------- Total corporate securities 6,560,940 7,191,985 ----------- ----------- COLLECTIVE TRUST FUNDS: BZW Barclays Global Investors........ BZW Barclays Equity Index Fund 162,310 3,175,816 3,181,878 BZW Barclays Global Investors........ BZW Barclays U.S. Debt Market Index Fund 150,322 1,793,249 1,783,655 ----------- ----------- Total collective trust funds 4,969,065 4,965,533 ----------- ----------- REGISTERED INVESTMENT COMPANIES: Fidelity Investments Institutional Services Co........................ Fidelity Growth Company Fund 63,968 2,706,927 2,588,137 INVESCO Funds Group, Inc............. INVESCO Value Trust Total Return Fund 11,668 275,895 283,529 Putnam Management Company............ Putnam New Opportunities Fund 55,325 2,329,047 2,247,853 Franklin Templeton................... Templeton Foreign Fund 25,499 255,163 264,170 ----------- ----------- Total registered investment companies 5,567,032 5,383,689 ----------- ----------- NationsBank.......................... Nations Cash Reserves 2,335,726 2,335,726 2,335,726 Tenneco Thrift Plan for Hourly Employees*......................... Participant loans receivable (interest rates ranging from 6% to 12%) 566,866 566,866 566,866 ----------- ----------- Total assets held for investment purposes $19,999,629 $20,443,799 =========== ===========
- ------------------------- *Indicated party in interest. 11 12 SCHEDULE II TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES SCHEDULE OF REPORTABLE TRANSACTIONS -- SERIES OF TRANSACTIONS FOR THE PERIOD FROM INCEPTION (APRIL 1, 1996) THROUGH DECEMBER 31, 1996
NUMBER OF COST TRANSACTIONS OF ASSETS NET IDENTITY OF ----------------- PURCHASE SELLING SOLD OR GAIN PARTY INVOLVED DESCRIPTION PURCHASES SALES PRICE(A)(C) PRICE(B)(C) DISTRIBUTED (LOSS) -------------- ----------- --------- ----- ----------- ----------- ----------- ------ Tenneco Inc. ............. Tenneco Inc. common stock 5 1 $ 1,205,815 $ 54,863 $ 53,454 $1,409 BZW Barclays Global Investors............... BZW Barclays Equity Index Fund 47 28 3,234,417 60,287 58,601 1,686 BZW Barclays Global Investors............... BZW Barclays U.S. Debt Market Index Fund 32 27 1,804,018 10,844 10,769 75 Fidelity Investments Institutional Services Co...................... Fidelity Growth Company Fund 46 43 2,751,133 45,145 44,206 939 INVESCO Funds Group, Inc. ................... INVESCO Value Trust Total Return Fund 45 30 289,252 13,633 13,357 276 Putnam Management Company................. Putnam New Opportunities Fund 55 38 2,427,944 99,385 98,897 488 Franklin Templeton........ Templeton Foreign Fund 42 32 279,381 24,584 24,218 366 NationsBank............... Nations Cash Reserves 145 186 18,438,603 16,102,877 16,102,877 --
- ------------------------- (a) Purchase price includes expenses incurred in connection with transactions (i.e., commissions, transfer fees, etc.). (b) Selling price is net of expenses incurred in connection with transactions. (c) Current value of asset on transaction date is equal to the purchase/selling price. NOTE: This schedule is a listing of series of transactions in the same security which exceed 5 percent of the market value of the initial contribution made to the Tenneco Thrift Plan for Hourly Employees. The Trustee initiates and consummates all investment transactions at the direction of the participants. 12 13 SCHEDULE III TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES SCHEDULE OF REPORTABLE TRANSACTIONS -- SINGLE TRANSACTIONS FOR THE PERIOD FROM INCEPTION (APRIL 1, 1996) THROUGH DECEMBER 31, 1996
COST OF ASSETS NET IDENTITY OF PURCHASE SELLING SOLD OR GAIN PARTY INVOLVED DESCRIPTION PRICE(A)(C) PRICE(B)(C) DISTRIBUTED (LOSS) -------------- ----------- ----------- ----------- ----------- ------ Tenneco Inc. .................. Tenneco Inc. common stock Purchase $ 999,998 $ -- $ -- $-- Tenneco Inc. .................. Tenneco Inc. common stock Purchase 99,956 -- -- -- BZW Barclays Global Investors.................... BZW Barclays Equity Index Fund Purchase 404,526 -- -- -- BZW Barclays Global Investors.................... BZW Barclays Equity Index Fund Purchase 2,233,039 -- -- -- BZW Barclays Global Investors.................... BZW Barclays Equity Index Fund Purchase 114,749 -- -- -- BZW Barclays Global Investors.................... BZW Barclays Equity Index Fund Purchase 219,961 -- -- -- BZW Barclays Global Investors.................... BZW Barclays U.S. Debt Market Index Fund Purchase 1,418,246 -- -- -- BZW Barclays Global Investors.................... BZW Barclays U.S. Debt Market Index Fund Purchase 148,913 -- -- -- Fidelity Investments Institutional Services Co. ......................... Fidelity Growth Company Fund Purchase 172,271 -- -- -- Fidelity Investments Institutional Services Co. ......................... Fidelity Growth Company Fund Purchase 253,011 -- -- -- Fidelity Investments Institutional Services Co. ......................... Fidelity Growth Company Fund Purchase 1,673,386 -- -- -- Fidelity Investments Institutional Services Co. ......................... Fidelity Growth Company Fund Purchase 168,003 -- -- -- Putnam Management Company...... Putnam New Opportunities Fund Purchase 120,521 -- -- -- Putnam Management Company...... Putnam New Opportunities Fund Purchase 675,026 -- -- -- Putnam Management Company...... Putnam New Opportunities Fund Purchase 880,862 -- -- -- Putnam Management Company...... Putnam New Opportunities Fund Purchase 147,832 -- -- -- Putnam Management Company...... Putnam New Opportunities Fund Purchase 107,376 -- -- -- Franklin Templeton............. Templeton Foreign Fund Purchase 130,867 -- -- -- NationsBank Texas.............. Nations Cash Reserves Purchase 1,644,063 -- -- -- NationsBank Texas.............. Nations Cash Reserves Purchase 764,361 -- -- -- NationsBank Texas.............. Nations Cash Reserves Purchase 125,114 -- -- -- NationsBank Texas.............. Nations Cash Reserves Purchase 179,247 -- -- -- NationsBank Texas.............. Nations Cash Reserves Purchase 3,465,379 -- -- -- NationsBank Texas.............. Nations Cash Reserves Purchase 765,117 -- -- -- NationsBank Texas.............. Nations Cash Reserves Purchase 1,404,652 -- -- -- NationsBank Texas.............. Nations Cash Reserves Purchase 7,004,539 -- -- -- NationsBank Texas.............. Nations Cash Reserves Purchase 747,502 -- -- -- NationsBank Texas.............. Nations Cash Reserves Purchase 540,648 -- -- -- NationsBank Texas.............. Nations Cash Reserves Purchase 296,234 -- -- -- NationsBank Texas.............. Nations Cash Reserves Purchase 195,640 -- -- -- NationsBank Texas.............. Nations Cash Reserves Sale -- 1,644,063 1,644,063 -- NationsBank Texas.............. Nations Cash Reserves Sale -- 745,491 745,491 -- NationsBank Texas.............. Nations Cash Reserves Sale -- 3,483,565 3,483,565 -- NationsBank Texas.............. Nations Cash Reserves Sale -- 99,291 99,291 -- NationsBank Texas.............. Nations Cash Reserves Sale -- 1,005,733 1,005,733 -- NationsBank Texas.............. Nations Cash Reserves Sale -- 103,736 103,736 -- NationsBank Texas.............. Nations Cash Reserves Sale -- 6,948,863 6,948,863 -- NationsBank Texas.............. Nations Cash Reserves Sale -- 477,524 477,524 -- NationsBank Texas.............. Nations Cash Reserves Sale -- 251,795 251,795 -- NationsBank Texas.............. Nations Cash Reserves Sale -- 276,344 276,344 --
- ------------------------- (a) Purchase price includes expenses incurred in connection with transaction (i.e., commissions, transfer fees, etc.). (b) Selling price is net of expenses incurred in connection with transaction. (c) Current value of asset on transaction date is equal to the purchase/selling price. NOTE: This schedule is a listing of single transactions which exceed 5 percent of the market value of the initial contribution made to the Tenneco Thrift Plan for Hourly Employees. The Trustee initiates and consummates all investment transactions at the direction of the participants. 13 14 SIGNATURES The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the Tenneco Benefits Committee has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES Date: June 27, 1997 By: /s/ DANA G. MEAD ---------------------------------- Dana G. Mead Chairman of the Tenneco Benefits Committee 15 INDEX TO EXHIBIT EXHIBIT NUMBER - ------- 23 --Consent of Independent Public Accountants EX-23 2 AUDITORS CONSENT 1 EXHIBIT 23 CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS As independent public accountants, we hereby consent to the incorporation by reference of our report dated June 20, 1997, included in this Annual Report on Form 11-K for the year ended December 31, 1996, into the previously filed Form S-8 Registration Statements of the Tenneco Thrift Plan For Hourly Employees (File Nos. 333-17487, 333-27281 and 333-27279). ARTHUR ANDERSEN LLP Houston, Texas June 27, 1997 -----END PRIVACY-ENHANCED MESSAGE-----