-----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, CLQyg+2HpDZI+aN+KwwtHy2RVl3K+X69BEZORxfeZmNm604YePDZ15MQJCXaLso6 zRH4A3c5+dbCdQbqB44GTw== 0000950137-97-002314.txt : 19970630 0000950137-97-002314.hdr.sgml : 19970630 ACCESSION NUMBER: 0000950137-97-002314 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: 97631723 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 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 statements of net assets available for plan benefits of the Tenneco Thrift Plan as of December 31, 1996 and 1995, and the related statements of changes in net assets available for plan benefits for the years then ended. 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 audits. We conducted our audits 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 audits provide 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 as of December 31, 1996 and 1995, and the changes in net assets available for plan benefits for the years then ended in conformity with generally accepted accounting principles. Our audits were 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 year ended December 31, 1996, included as Schedule II, and reportable transactions -- single transactions for the year ended 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 audits 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 STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS DECEMBER 31, 1996 AND 1995
1996 1995 ------------------------------------------- ----------------------------------------- MARKET MARKET SHARES COST VALUE SHARES COST VALUE ------ ---- ------ ------ ---- ------ ASSETS: Investments -- Corporate securities -- Tenneco Inc. common stock......... 7,024,248 $ 281,083,329 $ 316,969,191 7,332,492 $331,392,250 $ 363,874,916 El Paso Natural Gas Company common stock........................... 637,280 25,746,686 32,182,638 -- -- -- Newport News Shipbuilding Inc. common stock.................... 1,370,491 19,596,752 20,557,371 -- -- -- -------------- -------------- ------------ -------------- 326,426,767 369,709,200 331,392,250 363,874,916 Collective trust funds -- BZW Barclays Equity Index Fund.... 3,865,996 64,993,385 75,787,788 -- -- -- BZW Barclays U.S. Debt Market Index Fund...................... 1,187,604 13,489,594 14,091,620 -- -- -- -------------- -------------- ------------ -------------- 78,482,979 89,879,408 -- -- Registered investment companies -- Fidelity Growth Company Fund...... 2,926,447 95,602,471 118,404,041 2,388,589 71,105,240 86,689,043 INVESCO Value Trust Total Return Fund............................ 384,149 8,902,451 9,334,811 -- -- -- Putnam New Opportunities Fund..... 1,362,677 56,571,745 55,365,566 -- -- -- Templeton Foreign Fund............ 1,149,258 11,343,518 11,906,314 -- -- -- Fidelity U.S. Equity Index Portfolio....................... -- -- -- 1,437,115 24,935,106 32,420,246 Capstone Growth Fund, Inc......... -- -- -- 2,283,231 29,993,103 31,531,420 Fidelity U.S. Bond Index Portfolio....................... -- -- -- 1,571,333 16,899,764 17,211,429 -------------- -------------- ------------ -------------- 172,420,185 195,010,732 142,933,213 167,852,138 U.S. Treasury notes................. 101,900,948 102,593,340 236,829,852 238,545,135 BASIC Agreements on U.S. Treasury notes............................. 73,125 (619,267) 305,139 (1,410,145) Money market fund/time deposits..... 319,522,676 319,522,676 227,090,114 227,090,114 Cash surrender value of life insurance policies................ -- -- -- 86,486 Participant loans receivable........ 36,479,042 36,479,042 27,349,098 27,349,098 -------------- -------------- ------------ -------------- Total investments............... $1,035,305,722 $1,112,575,131 $965,899,666 $1,023,387,742 ============== -------------- ============ -------------- Receivables -- Employees' contributions............ 1,377,863 1,040,322 Employers' contributions............ 1,302,516 948,894 Accrued interest.................... 2,822,003 3,867,269 -------------- -------------- 5,502,382 5,856,485 Cash.................................. 7,805 355,550 -------------- -------------- Total assets.................... 1,118,085,318 1,029,599,777 LIABILITIES: Due to Trustee for purchased securities.......................... -- 154,758 -------------- -------------- NET ASSETS AVAILABLE FOR PLAN BENEFITS.............................. $1,118,085,318 $1,029,445,019 ============== ==============
The accompanying notes to financial statements are an integral part of these financial statements. 3 4 TENNECO THRIFT PLAN STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS FOR THE YEARS ENDED DECEMBER 31, 1996 AND 1995
1996 1995 ---- ---- NET ASSETS AVAILABLE FOR PLAN BENEFITS, beginning of year... $1,029,445,019 $ 883,222,542 -------------- -------------- ADD: Dividends -- Tenneco Inc............................................ 12,239,040 11,399,437 Registered investment companies........................ 6,505,201 10,146,008 Interest.................................................. 24,020,447 24,437,665 -------------- -------------- 42,764,688 45,983,110 Net appreciation in fair value of investments............. 42,530,819 85,731,035 -------------- -------------- Net investment income................................ 85,295,507 131,714,145 Contributions -- Employees.............................................. 50,006,711 46,974,066 Employers.............................................. 48,127,132 44,180,868 Rollovers.............................................. 14,483,652 -- -------------- -------------- 112,617,495 91,154,934 Repayment of loan interest................................ 2,186,426 1,917,000 -------------- -------------- Total additions...................................... 200,099,428 224,786,079 DEDUCT: Withdrawals............................................... 105,343,239 65,058,828 Administrative expenses................................... 992,964 647,744 Transfer to other plans................................... 5,122,926 12,857,030 -------------- -------------- Total deductions..................................... 111,459,129 78,563,602 -------------- -------------- NET ASSETS AVAILABLE FOR PLAN BENEFITS, end of year......... $1,118,085,318 $1,029,445,019 ============== ==============
The accompanying notes to financial statements are an integral part of these financial statements. 4 5 TENNECO THRIFT PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1996 AND 1995 1. DESCRIPTION OF THE THRIFT PLAN: The following description of the Tenneco Thrift Plan (the Thrift Plan) provides only general information. Participants should refer to the Thrift Plan for a more complete description of the 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 spun off 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 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 Thrift Plan. Effective with the Distributions and Merger, Newport News and the Energy Business ceased participation in the Thrift Plan and affected participants' account balances totaling approximately $756,000,000 were subsequently transferred in January 1997 to their respective successor plans (see Note 8). For purposes of these financial statements, "Tenneco Inc." or "Employers" refers to Old Tenneco and its subsidiaries that have adopted the Thrift Plan prior to the Transaction and to Tenneco Inc., formerly known as New Tenneco Inc., and its subsidiaries that have continued sponsorship of the Thrift Plan subsequent to the Transaction. GENERAL The Thrift Plan is a defined contribution plan subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended. Effective April 1, 1996, the Thrift Plan was restated and the name was changed from the Tenneco Inc. Thrift Plan to the Tenneco Thrift Plan. The Thrift Plan covers eligible employees of the Employers. CONTRIBUTIONS Eligible employees electing to participate in the Thrift Plan may make salary deferral contributions by payroll deduction of not less than 4 percent nor greater than 8 percent of their base salary, with such contributions limited to $9,500 for 1996 and $9,240 for 1995. Prior to April 1, 1996, if a participant suspended contributions, 5 6 then, with certain limited exceptions, such suspension continued for a one-year period. The Employers contribute on behalf of the participant an amount up to the participant's contribution according to the following percentages of the participant's base salary, based on the number of years of participation in the Thrift Plan: 4 percent -- through three years; 5 percent -- over three through five years; 6 percent -- over five through seven years; and 8 percent -- over seven years. The participant immediately vests in Employer contributions. Employer contributions are made in the form of Tenneco Inc. common stock. The Employers' matching contributions and the related earnings made after January 1, 1993, 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 All participants are 100 percent vested in their entire account balance in the Thrift Plan. WITHDRAWALS AND PLAN LOANS Upon retirement or other termination of employment, the participant may receive the value of his account as a lump-sum distribution. A participant who has attained age 55 may request 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 who has not attained age 55 may request an in-service withdrawal of his employee contributions made prior to April 1, 1984, and any Employer matching contributions credited to his account prior to January 1, 1993. Plan equity as of December 31, 1996 and 1995, includes amounts pending distribution to participants of $1,176,181 and $2,142,638, respectively. Amounts pending distribution to participants as of December 31, 1996, do not include transfers to the Newport News and El Paso plans (see Note 8). Active participants and certain other individuals who have not had a plan loan during the previous three months (12 months prior to April 1, 1996) may obtain a plan loan with a term not to exceed 54 months from his account. The borrower may have only one plan loan outstanding at any time, and the amount of the loan may not be less than $1,000 and shall not exceed the lesser of (a) $50,000 or (b) one-half the borrower's account balance. Prior to April 1, 1996, a restriction existed on the loan repayment amount which limited loans to an amount the repayment of which (together with interest) in equal monthly installments could not exceed 10 percent of the borrower's monthly base compensation (or 10 percent of the borrower's monthly income in the case of a nonemployee borrower). The loan interest rate is equal to the highest share-secured loan interest rate charged by the Tenneco Inc. Federal Credit Union. The average interest rate for new loans was 7.75 percent and 7.38 percent during 1996 and 1995, respectively. Loan principal and interest repayments are made through irrevocable payments. Termination of employment may accelerate the maturity of the loan, and failure to make a loan repayment on time may generally constitute default. In the event of default, the Committee will treat the outstanding loan balance as a distribution to the participant under the Thrift Plan and thereby reduce the participant's interest in the Thrift Plan. ADMINISTRATION The Thrift Plan is administered by the Tenneco Benefits Committee (the Committee). NationsBank (the Trustee) is the Trustee of the Thrift Plan Trust (the Trust). 2. SUMMARY OF ACCOUNTING POLICIES: BASIS OF ACCOUNTING The financial statements of the Thrift Plan are presented on the accrual basis of accounting. The investments of the Thrift Plan are reported at quoted market value except for the BASIC Agreement on U.S. Treasury notes whose market value is based upon the difference between the quoted market value of the U.S. Treasury notes and the amortized cost of the related securities. 6 7 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 value per share at the close of business each day. EXPENSES All administrative expenses, including the Trustee's fees, are paid from earnings from the Trust attributable to unallocated amounts or by the Employers. 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. Prior to April 1, 1996, an additional transaction fee was charged to an individual participant's account for processing new loans and investment purchases or sales over $100. 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. OTHER Certain 1995 amounts have been reclassified to conform with the 1996 presentation. 3. INVESTMENT OPTIONS: Effective March 1996, 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 (previously Time Deposits) -- Invests in Nations Cash Reserves, which seeks to preserve principal value and maintain a high degree of liquidity while providing current income. The fund also invests in U.S. Treasury securities (see Note 4). Shares of Newport News common stock and El Paso common stock received in connection with the Distributions and Merger are held in separate funds; however, participants cannot direct contributions or fund transfers to these funds. Prior to March 1996, participants could invest contributions and other cash amounts credited to their accounts in one or more of the following: Tenneco Inc. Common Stock Fidelity Growth Company Fund -- Fund continued as an investment option after March 1, 1996. Fidelity U.S. Equity Index Portfolio -- Fund attempted to follow the S&P 500 index. Capstone Growth Fund, Inc. -- Fund was a growth-oriented common stock mutual fund that focused on long-term capital appreciation and current income. Fidelity U.S. Bond Index Portfolio -- Fund was an index fund that attempted to follow the Lehman Brothers Aggregate Bond Index. Time Deposits -- Invested in U.S. Treasury securities (see Note 4) and interest-bearing deposits in banks and similar institutions supervised by the United States or state regulatory agencies and selected by the Committee. The Committee could have selected a bank which was a Thrift Plan fiduciary, provided a reasonable rate of interest had been paid. See Exhibits 1 and 2 for individual fund information. 4. BASIC AGREEMENT: Effective November 24, 1993, the Thrift Plan entered into the Benefit Accessible Securities Investment Contract (BASIC) Master Agreement (BASIC Agreement) with Bankers Trust (Delaware) in order to increase the rate of return of the Money Market Fund (formerly Time Deposits). Under the BASIC Agreement, monies are invested in U.S. Treasury securities (the Securities) with original maturities ranging from approximately 11 months to 37 months. The BASIC Agreement provides that, in the event of liquidation required to pay withdrawals, the Securities will be sold to Bankers Trust at face value adjusted for any unamortized premium/discount and BASIC Agreement fee. As a result, the Thrift Plan is generally protected from declines in the market value of the Securities and relinquishes the benefits of appreciation in their market value. As consideration for the BASIC Agreement, the Thrift Plan is required to pay an initial fee to Bankers Trust; such fee is being amortized over the term of the Securities. As of December 31, 1996 and 1995, the BASIC Agreement had an amortized cost of $73,125 and $305,139 and a market value of $(619,267) and $(1,410,145), respectively. 5. PAYABLE TO/RECEIVABLE FROM TRUSTEE FOR SECURITIES: Prior to March 1, 1996, securities were purchased or sold by the Trustee in anticipation of the transaction requirements of the Thrift Plan participants. The amount payable to the Trustee of $154,758 at December 31, 1995, represented the cost of securities which were purchased by the Trustee as of such date in accordance with the terms of the Thrift Plan over the amount of securities required by the Thrift Plan. 8 9 6. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500: The following is a reconciliation of net assets available for plan benefits per the financial statements to the Form 5500 as of December 31, 1996 and 1995.
1996 1995 ---- ---- Net assets available for plan benefits per the financial statements................................................ $1,118,085,318 $1,029,445,019 Less -- Amounts allocated to withdrawing participants..... (1,176,181) (2,142,638) -------------- -------------- Net assets available for plan benefits per the Form 5500.... $1,116,909,137 $1,027,302,381 ============== ==============
The following is a reconciliation of benefits paid to participants per the financial statements to the Form 5500 as of December 31, 1996 and 1995:
1996 1995 ---- ---- Benefits paid to participants per the financial statements................................................ $105,343,239 $65,058,828 Add -- Amounts allocated to withdrawing participants at December 31, 1996 and 1995............................. 1,176,181 2,142,638 Less -- Amounts allocated to withdrawing participants at December 31, 1995 and 1994............................. (2,142,638) -- ------------ ----------- Benefits paid to participants per the Form 5500............. $104,376,782 $67,201,466 ============ ===========
Amounts allocated to withdrawing participants are recorded on the Form 5500 for benefit claims that have been processed and approved for payment prior to December 31, but not paid as of that date. 7. FEDERAL INCOME TAXES: The Thrift Plan obtained its latest determination letter on August 19, 1996, in which the Internal Revenue Service stated that the Thrift Plan, as then designed, was in compliance with the applicable requirements of the Internal Revenue Code. The Thrift Plan has been amended since receiving the determination letter. However, the Plan administrator and the Thrift Plan's legal counsel believe that the Thrift Plan is currently designed and being operated in compliance with the applicable requirements of the Internal Revenue Code. Therefore, they believe that the Thrift Plan was qualified and the related trust was tax-exempt as of the financial statement date. A participant is not subject to federal income tax on matching Employer contributions, salary deferral contributions or earnings on such participant's account balance until distributed. 8. TRANSFER TO OTHER PLANS: In conjunction with the Distributions, the participation of Newport News employees in the Thrift Plan ceased and their Thrift Plan account balances, totaling approximately $523,000,000, were transferred in January 1997 to a new plan established by Newport News. In conjunction with the Merger, the participation of employees transferring to El Paso in the Thrift Plan ceased and their Thrift Plan account balances, totaling approximately $233,000,000, were transferred in January 1997 to an existing plan of El Paso. In June 1996, Tenneco Packaging and Caraustar Industries (Caraustar) entered into a joint venture pursuant to which Tenneco Packaging contributed its two recycled paperboard mills and a recovered paper stock and brokerage operation for cash and a 20% equity position in the business. All salaried employees that were affected by the transaction were transferred to Caraustar's payroll and benefits programs. In conjunction with the transaction, the affected employees ceased to participate in the Thrift Plan and their Thrift Plan account balances, totaling $5,122,926, were transferred in November 1996 to the Caraustar savings plan. 9 10 In December 1994, Tenneco Inc. announced its intent to offer 100 percent of its Albright & Wilson (A&W) chemical segment in an underwritten public offering. The offering, in the form of a floatation in the United Kingdom, was completed in the first quarter of 1995. In conjunction with the public offering, the participation of A&W employees in the Thrift Plan ceased and their Thrift Plan account balances, totaling $12,857,030, were transferred to a new plan established by the new public entity. 9. ACQUISITIONS: During 1996, Tenneco Packaging acquired Amoco Foam Products Company (Amoco Foam). As agreed to in the purchase agreement, the former Amoco Foam salaried employees were allowed to participate in the Thrift Plan effective October 1, 1996. Employers' contributions in the statements of changes in net assets available for plan benefits includes a one-time special contribution related to these former Amoco Foam salaried employees in the amount of $87,463 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 employees could have made an elective transfer of their account balances in the Amoco Employee Savings Plan (the Amoco Foam Plan) into the Thrift Plan, provided that the former Amoco Foam employees did not have more than one loan outstanding under the Amoco Foam Plan. During 1995, Tenneco Packaging acquired the Mobile Plastics Division of Mobil Oil Corporation (Mobil). As agreed to in the purchase agreement, the former Mobil salaried employees were not allowed to participate in the Thrift Plan until April 1, 1996. In order to compensate this group of employees for the matching contribution that they were not eligible for 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 statements of changes in net assets available for plan benefits includes the one-time special contribution of $1,193,110. Beginning April 1, 1996, and ending September 27, 1996, former Mobil salaried employees could have made an elective transfer of their account balances from the Mobil Employee Savings Plan (the Mobil Plan) into the Thrift Plan provided, however, that no elective transfer was permitted if the former Mobil salaried employee had a loan outstanding under the Mobil Plan. 10. TERMINATION OF THE THRIFT PLAN: Although the participating Employers intend to continue the Thrift Plan indefinitely, they reserve the right to terminate the Thrift Plan or withdraw from participation in the Thrift Plan. Any assets which are not allocated to the accounts of participants upon the complete termination of the Thrift Plan, or complete discontinuance of contributions, will be allocated among all of the participants' accounts pro rata on the basis of their respective balances. 10 11 EXHIBIT 1 TENNECO THRIFT PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION DECEMBER 31, 1996
PARTICIPANT-DIRECTED INVESTMENTS -------------------------------------------------------- EL PASO NEWPORT NEWS NATURAL GAS SHIPBUILDING BZW TENNECO INC. COMPANY INC. BARCLAYS COMMON COMMON COMMON EQUITY INDEX STOCK STOCK STOCK FUND ------------ ----------- ------------ ------------ ASSETS: Investments, at market value -- Corporate securities -- Tenneco Inc. common stock................................ $177,195,021 $ -- $ -- $ -- El Paso Natural Gas Company common stock................. -- 32,182,638 -- -- Newport News Shipbuilding Inc. common stock.............. -- -- 20,557,371 -- ------------ ----------- ----------- ----------- 177,195,021 32,182,638 20,557,371 -- Collective trust funds -- BZW Barclays Equity Index Fund........................... -- -- -- 75,787,788 BZW Barclays U.S. Debt Market Index Fund................. -- -- -- -- ------------ ----------- ----------- ----------- -- -- -- 75,787,788 Registered investment companies -- Fidelity Growth Company Fund............................. -- -- -- -- INVESCO Value Trust Total Return Fund.................... -- -- -- -- Putnam New Opportunities Fund............................ -- -- -- -- Templeton Foreign Fund................................... -- -- -- -- ------------ ----------- ----------- ----------- -- -- -- -- U.S. Treasury notes....................................... -- -- -- -- BASIC Agreements on U.S. Treasury notes................... -- -- -- -- Money market fund......................................... 3,854,941 841,798 543,181 -- Participant loans receivable.............................. -- -- -- -- ------------ ----------- ----------- ----------- Total investments...................................... 181,049,962 33,024,436 21,100,552 75,787,788 ------------ ----------- ----------- ----------- Receivables -- Employees' contributions.................................. 193,496 -- -- 123,193 Employers' contributions.................................. -- -- -- -- Accrued interest.......................................... 14,489 2,336 1,639 -- ------------ ----------- ----------- ----------- 207,985 2,336 1,639 123,193 Cash....................................................... -- -- -- 14 OPTION TRANSFERS RECEIVABLE (PAYABLE)....................... (62,626) (51,314) (82,310) 76,514 ------------ ----------- ----------- ----------- NET ASSETS AVAILABLE FOR PLAN BENEFITS...................... $181,195,321 $32,975,458 $21,019,881 $75,987,509 ============ =========== =========== =========== PARTICIPANT-DIRECTED INVESTMENTS ----------------------------------------------------------- BZW BARCLAYS FIDELITY INVESCO PUTNAM U.S. DEBT GROWTH VALUE TRUST NEW MARKET INDEX COMPANY TOTAL RETURN OPPORTUNITIES FUND FUND FUND FUND ------------ -------- ------------ ------------- ASSETS: Investments, at market value -- 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................. 14,091,620 -- -- -- ----------- ------------ ---------- ----------- 14,091,620 -- -- -- Registered investment companies -- Fidelity Growth Company Fund............................. -- 118,404,041 -- -- INVESCO Value Trust Total Return Fund.................... -- -- 9,334,811 -- Putnam New Opportunities Fund............................ -- -- -- 55,365,566 Templeton Foreign Fund................................... -- -- -- -- ----------- ------------ ---------- ----------- -- 118,404,041 9,334,811 55,365,566 U.S. Treasury notes....................................... -- -- -- -- BASIC Agreements on U.S. Treasury notes................... -- -- -- -- Money market fund......................................... -- -- -- -- Participant loans receivable.............................. -- -- -- -- ----------- ------------ ---------- ----------- Total investments...................................... 14,091,620 118,404,041 9,334,811 55,365,566 ----------- ------------ ---------- ----------- Receivables -- Employees' contributions.................................. 29,132 244,340 28,522 172,729 Employers' contributions.................................. -- -- -- -- Accrued interest.......................................... -- -- 14,862 -- ----------- ------------ ---------- ----------- 29,132 244,340 43,384 172,729 Cash....................................................... 14 -- -- -- OPTION TRANSFERS RECEIVABLE (PAYABLE)....................... (6,850) 94,039 26,685 296,181 ----------- ------------ ---------- ----------- NET ASSETS AVAILABLE FOR PLAN BENEFITS...................... $14,113,916 $118,742,420 $9,404,880 $55,834,476 =========== ============ ========== =========== NONPARTICIPANT- PARTICIPANT-DIRECTED INVESTMENTS DIRECTED INVESTMENTS ---------------------------------------- ------------------------- TEMPLETON MONEY TENNECO INC. FOREIGN MARKET PARTICIPANT COMMON CLEARING FUND FUND LOANS STOCK ACCOUNT --------- ------ ----------- ------------ -------- ASSETS: Investments, at market value -- Corporate securities -- Tenneco Inc. common stock................................ $ -- $ -- $ -- $139,774,170 $ -- El Paso Natural Gas Company common stock................. -- -- -- -- -- Newport News Shipbuilding Inc. common stock.............. -- -- -- -- -- ----------- ------------ ----------- ------------ ---------- -- -- -- 139,774,170 -- 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.................... -- -- -- -- -- Putnam New Opportunities Fund............................ -- -- -- -- -- Templeton Foreign Fund................................... 11,906,314 -- -- -- -- ----------- ------------ ----------- ------------ ---------- 11,906,314 -- -- -- -- U.S. Treasury notes....................................... -- 102,593,340 -- -- -- BASIC Agreements on U.S. Treasury notes................... -- (619,267) -- -- -- Money market fund......................................... -- 309,860,733 -- 3,040,837 1,381,186 Participant loans receivable.............................. -- -- 36,479,042 -- -- ----------- ------------ ----------- ------------ ---------- Total investments...................................... 11,906,314 411,834,806 36,479,042 142,815,007 1,381,186 ----------- ------------ ----------- ------------ ---------- Receivables -- Employees' contributions.................................. 30,414 556,037 -- -- -- Employers' contributions.................................. -- -- -- 1,302,516 -- Accrued interest.......................................... -- 2,691,203 76,040 11,430 10,004 ----------- ------------ ----------- ------------ ---------- 30,414 3,247,240 76,040 1,313,946 10,004 Cash....................................................... -- -- -- -- 7,777 OPTION TRANSFERS RECEIVABLE (PAYABLE)....................... 97,188 (224,232) (420,581) -- 257,306 ----------- ------------ ----------- ------------ ---------- NET ASSETS AVAILABLE FOR PLAN BENEFITS...................... $12,033,916 $414,857,814 $36,134,501 $144,128,953 $1,656,273 =========== ============ =========== ============ ========== TOTAL ----- ASSETS: Investments, at market value -- Corporate securities -- Tenneco Inc. common stock................................ $ 316,969,191 El Paso Natural Gas Company common stock................. 32,182,638 Newport News Shipbuilding Inc. common stock.............. 20,557,371 -------------- 369,709,200 Collective trust funds -- BZW Barclays Equity Index Fund........................... 75,787,788 BZW Barclays U.S. Debt Market Index Fund................. 14,091,620 -------------- 89,879,408 Registered investment companies -- Fidelity Growth Company Fund............................. 118,404,041 INVESCO Value Trust Total Return Fund.................... 9,334,811 Putnam New Opportunities Fund............................ 55,365,566 Templeton Foreign Fund................................... 11,906,314 -------------- 195,010,732 U.S. Treasury notes....................................... 102,593,340 BASIC Agreements on U.S. Treasury notes................... (619,267) Money market fund......................................... 319,522,676 Participant loans receivable.............................. 36,479,042 -------------- Total investments...................................... 1,112,575,131 -------------- Receivables -- Employees' contributions.................................. 1,377,863 Employers' contributions.................................. 1,302,516 Accrued interest.......................................... 2,822,003 -------------- 5,502,382 Cash....................................................... 7,805 OPTION TRANSFERS RECEIVABLE (PAYABLE)....................... -- -------------- NET ASSETS AVAILABLE FOR PLAN BENEFITS...................... $1,118,085,318 ==============
This exhibit is an integral part of the accompanying financial statements. 11 12 EXHIBIT 1 CONTINUED TENNECO THRIFT PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION DECEMBER 31, 1995
PARTICIPANT-DIRECTED INVESTMENTS ------------------------------------------------------------------------ FIDELITY TENNECO INC. GROWTH FIDELITY U.S. CAPSTONE FIDELITY U.S. COMMON COMPANY EQUITY INDEX GROWTH BOND INDEX STOCK FUND PORTFOLIO FUND, INC. PORTFOLIO ------------ -------- ------------- ---------- ------------- ASSETS: Investments, at market value -- Corporate securities -- Tenneco Inc. common stock................ $233,515,424 $ -- $ -- $ -- $ -- Registered investment companies -- Fidelity Growth Company Fund............. -- 86,689,043 -- -- -- Capstone Growth Fund, Inc................ -- -- -- 31,531,420 -- Fidelity U.S. Equity Index Portfolio..... -- -- 32,420,246 -- -- Fidelity U.S. Bond Index Portfolio....... -- -- -- -- 17,211,429 ------------ ----------- ----------- ----------- ----------- -- 86,689,043 32,420,246 31,531,420 17,211,429 U.S. Treasury notes........................ -- -- -- -- -- BASIC Agreements on U.S. Treasury notes.... -- -- -- -- -- Time deposits.............................. -- -- -- -- -- Cash surrender value of life insurance policies................................. -- -- -- -- -- Participant loans receivable............... -- -- -- -- -- ------------ ----------- ----------- ----------- ----------- Total investments...................... 233,515,424 86,689,043 32,420,246 31,531,420 17,211,429 ------------ ----------- ----------- ----------- ----------- Receivables -- Employees' contributions................... 244,145 189,205 79,042 37,911 33,163 Employers' contributions................... -- -- -- -- -- Accrued interest........................... -- -- -- -- -- ------------ ----------- ----------- ----------- ----------- 244,145 189,205 79,042 37,911 33,163 Cash......................................... 901 272 -- 141 113 ------------ ----------- ----------- ----------- ----------- Total assets........................... 233,760,470 86,878,520 32,499,288 31,569,472 17,244,705 LIABILITIES: Due to Trustee for purchased securities...... 63,061 49,719 15,944 13,054 12,980 ------------ ----------- ----------- ----------- ----------- NET ASSETS AVAILABLE FOR PLAN BENEFITS......... $233,697,409 $86,828,801 $32,483,344 $31,556,418 $17,231,725 ============ =========== =========== =========== =========== NONPARTICIPANT- PARTICIPANT-DIRECTED INVESTMENTS DIRECTED ----------------------------------------- INVESTMENT --------------- DISCONTINUED TENNECO INC. TIME INVESTMENT PARTICIPANT COMMON DEPOSITS OPTIONS LOANS STOCK TOTAL -------- ------------ ----------- ------------ ----- ASSETS: Investments, at market value -- Corporate securities -- Tenneco Inc. common stock................ $ -- $ -- $ -- $130,359,492 $ 363,874,916 Registered investment companies -- Fidelity Growth Company Fund............. -- -- -- -- 86,689,043 Capstone Growth Fund, Inc................ -- -- -- -- 31,531,420 Fidelity U.S. Equity Index Portfolio..... -- -- -- -- 32,420,246 Fidelity U.S. Bond Index Portfolio....... -- -- -- -- 17,211,429 ------------ ------- ----------- ------------ -------------- -- -- -- -- 167,852,138 U.S. Treasury notes........................ 238,545,135 -- -- -- 238,545,135 BASIC Agreements on U.S. Treasury notes.... (1,410,145) -- -- -- (1,410,145) Time deposits.............................. 227,090,114 -- -- -- 227,090,114 Cash surrender value of life insurance policies................................. -- 86,486 -- -- 86,486 Participant loans receivable............... -- -- 27,349,098 -- 27,349,098 ------------ ------- ----------- ------------ -------------- Total investments...................... 464,225,104 86,486 27,349,098 130,359,492 1,023,387,742 ------------ ------- ----------- ------------ -------------- Receivables -- Employees' contributions................... 456,575 281 -- -- 1,040,322 Employers' contributions................... -- -- -- 948,894 948,894 Accrued interest........................... 3,867,269 -- -- -- 3,867,269 ------------ ------- ----------- ------------ -------------- 4,323,844 281 -- 948,894 5,856,485 Cash......................................... 354,123 -- -- -- 355,550 ------------ ------- ----------- ------------ -------------- Total assets........................... 468,903,071 86,767 27,349,098 131,308,386 1,029,599,777 LIABILITIES: Due to Trustee for purchased securities...... -- -- -- -- 154,758 ------------ ------- ----------- ------------ -------------- NET ASSETS AVAILABLE FOR PLAN BENEFITS......... $468,903,071 $86,767 $27,349,098 $131,308,386 $1,029,445,019 ============ ======= =========== ============ ==============
This exhibit is an integral part of the accompanying financial statements. 12 13 EXHIBIT 2 TENNECO THRIFT PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FROM PLAN BENEFITS, WITH FUND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1996
PARTICIPANT-DIRECTED INVESTMENTS -------------------------------------------------------------------------------------- EL PASO NEWPORT NEWS NATURAL GAS SHIPBUILDING BZW BZW BARCLAYS FIDELITY TENNECO INC. COMPANY INC. BARCLAYS U.S. DEBT GROWTH COMMON COMMON COMMON EQUITY INDEX MARKET COMPANY STOCK STOCK STOCK FUND INDEX FUND FUND ------------ ----------- ------------ ------------ ------------ -------- NET ASSETS AVAILABLE FOR PLAN BENEFITS, beginning of year.................. $233,697,409 $ -- $ -- $ -- $ -- $ 86,828,801 ------------ ----------- ----------- ----------- ----------- ------------ ADD: Dividends -- Tenneco Inc. common stock......... 5,950,325 -- -- -- -- -- Registered investment companies... -- -- -- -- -- 5,218,502 Interest........................... 223,542 2,336 1,639 -- -- -- ------------ ----------- ----------- ----------- ----------- ------------ 6,173,867 2,336 1,639 -- -- 5,218,502 Net appreciation (depreciation) in fair value of investments......... 8,709,868 2,859,285 (1,376,780) 11,405,739 646,394 11,227,240 ------------ ----------- ----------- ----------- ----------- ------------ Net investment income (loss)..... 14,883,735 2,861,621 (1,375,141) 11,405,739 646,394 16,445,742 Contributions -- Employees......................... 8,198,796 -- -- 4,165,475 1,055,965 9,070,169 Employers......................... -- -- -- -- -- -- Rollovers......................... 1,777,636 -- -- 1,124,015 548,117 2,464,757 ------------ ----------- ----------- ----------- ----------- ------------ 9,976,432 -- -- 5,289,490 1,604,082 11,534,926 Repayment of loan interest......... -- -- -- -- -- -- Distributions and merger........... (29,426,664) 30,607,578 22,894,864 -- -- -- ------------ ----------- ----------- ----------- ----------- ------------ Total additions.................. (4,566,497) 33,469,199 21,519,723 16,695,229 2,250,476 27,980,668 ------------ ----------- ----------- ----------- ----------- ------------ DEDUCT: Withdrawals........................ 3,085,975 54,862 38,660 5,923,762 1,499,250 6,690,510 Administrative expenses............ -- -- -- -- -- -- Transfers to other plans........... 798,150 -- -- 176,714 26,393 271,964 ------------ ----------- ----------- ----------- ----------- ------------ Total deductions................. 3,884,125 54,862 38,660 6,100,476 1,525,643 6,962,474 OPTION TRANSFERS.................... (44,051,466) (438,879) (461,182) 65,392,756 13,389,083 10,895,425 ------------ ----------- ----------- ----------- ----------- ------------ NET ASSETS AVAILABLE FOR PLAN BENEFITS, end of year.............. $181,195,321 $32,975,458 $21,019,881 $75,987,509 $14,113,916 $118,742,420 ============ =========== =========== =========== =========== ============ PARTICIPANT-DIRECTED INVESTMENTS --------------------------------------------------------------------------------------- INVESCO PUTNAM FIDELITY VALUE TRUST NEW TEMPLETON MONEY U.S. EQUITY CAPSTONE TOTAL RETURN OPPORTUNITIES FOREIGN MARKET INDEX GROWTH FUND FUND FUND FUND PORTFOLIO FUND, INC. ------------ ------------- --------- ------ ----------- ---------- NET ASSETS AVAILABLE FOR PLAN BENEFITS, beginning of year.................. $ -- $ -- $ -- $468,903,071 $ 32,483,344 $ 31,556,418 ---------- ----------- ----------- ------------ ------------ ------------ ADD: Dividends -- Tenneco Inc. common stock......... -- -- -- -- -- -- Registered investment companies... 239,394 426,689 431,296 -- -- -- Interest........................... -- -- -- 23,426,184 -- -- ---------- ----------- ----------- ------------ ------------ ------------ 239,394 426,689 431,296 23,426,184 -- -- Net appreciation (depreciation) in fair value of investments......... 460,370 (1,193,570) 587,863 -- 1,414,691 1,036,393 ---------- ----------- ----------- ------------ ------------ ------------ Net investment income (loss)..... 699,764 (766,881) 1,019,159 23,426,184 1,414,691 1,036,393 Contributions -- Employees......................... 612,777 3,407,310 643,517 22,048,071 416,352 208,344 Employers......................... -- -- -- -- -- -- Rollovers......................... 1,221,988 3,296,595 647,255 2,580,191 -- -- ---------- ----------- ----------- ------------ ------------ ------------ 1,834,765 6,703,905 1,290,772 24,628,262 416,352 208,344 Repayment of loan interest......... -- -- -- -- -- -- Distributions and merger........... -- -- -- -- -- -- ---------- ----------- ----------- ------------ ------------ ------------ Total additions.................. 2,534,529 5,937,024 2,309,931 48,054,446 1,831,043 1,244,737 ---------- ----------- ----------- ------------ ------------ ------------ DEDUCT: Withdrawals........................ 343,831 1,376,268 161,193 71,137,293 489 427 Administrative expenses............ -- -- -- 430,723 -- -- Transfers to other plans........... 300 1,067 298 2,429,120 -- -- ---------- ----------- ----------- ------------ ------------ ------------ Total deductions................. 344,131 1,377,335 161,491 73,997,136 489 427 OPTION TRANSFERS.................... 7,214,482 51,274,787 9,885,476 (28,102,567) (34,313,898) (32,800,728) ---------- ----------- ----------- ------------ ------------ ------------ NET ASSETS AVAILABLE FOR PLAN BENEFITS, end of year.............. $9,404,880 $55,834,476 $12,033,916 $414,857,814 $ -- $ -- ========== =========== =========== ============ ============ ============ NONPARTICIPANT- PARTICIPANT-DIRECTED INVESTMENTS DIRECTED INVESTMENTS ----------------------------------------- ------------------------- FIDELITY U.S. BOND DISCONTINUED TENNECO INC. INDEX INVESTMENT PARTICIPANT COMMON CLEARING PORTFOLIO OPTIONS LOANS STOCK ACCOUNT TOTAL --------- ------------ ----------- ------------ -------- ----- NET ASSETS AVAILABLE FOR PLAN BENEFITS, beginning of year.................. $ 17,231,725 $86,767 $27,349,098 $131,308,386 $ -- $1,029,445,019 ------------ ------- ----------- ------------ ---------- -------------- ADD: Dividends -- Tenneco Inc. common stock......... -- -- -- 6,288,715 -- 12,239,040 Registered investment companies... 189,320 -- -- -- -- 6,505,201 Interest........................... -- -- -- 182,893 183,853 24,020,447 ------------ ------- ----------- ------------ ---------- -------------- 189,320 -- -- 6,471,608 183,853 42,764,688 Net appreciation (depreciation) in fair value of investments......... (372,758) -- -- 7,126,084 -- 42,530,819 ------------ ------- ----------- ------------ ---------- -------------- Net investment income (loss)..... (183,438) -- -- 13,597,692 183,853 85,295,507 Contributions -- Employees......................... 179,935 -- -- -- -- 50,006,711 Employers......................... -- -- -- 48,127,132 -- 48,127,132 Rollovers......................... -- -- 823,098 -- -- 14,483,652 ------------ ------- ----------- ------------ ---------- -------------- 179,935 -- 823,098 48,127,132 -- 112,617,495 Repayment of loan interest......... -- -- 2,186,426 -- -- 2,186,426 Distributions and merger........... -- -- -- (24,075,778) -- -- ------------ ------- ----------- ------------ ---------- -------------- Total additions.................. (3,503) -- 3,009,524 37,649,046 183,853 200,099,428 ------------ ------- ----------- ------------ ---------- -------------- DEDUCT: Withdrawals........................ 1,846 86,767 1,091,483 13,850,623 -- 105,343,239 Administrative expenses............ -- -- -- -- 562,241 992,964 Transfers to other plans........... -- -- 37,583 1,381,337 -- 5,122,926 ------------ ------- ----------- ------------ ---------- -------------- Total deductions................. 1,846 86,767 1,129,066 15,231,960 562,241 111,459,129 OPTION TRANSFERS.................... (17,226,376) -- 6,904,945 (9,596,519) 2,034,661 -- ------------ ------- ----------- ------------ ---------- -------------- NET ASSETS AVAILABLE FOR PLAN BENEFITS, end of year.............. $ -- $ -- $36,134,501 $144,128,953 $1,656,273 $1,118,085,318 ============ ======= =========== ============ ========== ==============
This exhibit is an integral part of the accompanying financial statements. 13 14 EXHIBIT 2 CONTINUED TENNECO THRIFT PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1995
PARTICIPANT-DIRECTED INVESTMENTS ---------------------------------------------------------------------- FIDELITY FIDELITY TENNECO INC. GROWTH FIDELITY U.S. CAPSTONE U.S. COMMON COMPANY EQUITY INDEX GROWTH BOND INDEX STOCK FUND PORTFOLIO FUND, INC. PORTFOLIO ------------ -------- ------------- ---------- ---------- NET ASSETS AVAILABLE FOR PLAN BENEFITS, beginning of year........................................ $220,354,216 $66,903,581 $22,961,424 $29,073,325 $13,469,769 ADD: Dividends -- Tenneco Inc. common stock.............................. 7,882,241 -- -- -- -- Registered investment companies........................ -- 3,867,033 783,458 4,382,470 1,106,065 Interest.................................................. -- -- -- -- -- ----------- ---------- ----------- ----------- ---------- 7,882,241 3,867,033 783,458 4,382,470 1,106,065 Net appreciation in fair value of investments............. 36,658,103 21,115,284 7,699,600 3,311,421 1,424,680 ----------- ---------- ----------- ----------- ---------- Net investment income.............................. 44,540,344 24,982,317 8,483,058 7,693,891 2,530,745 Contributions -- Employees................................................ 9,043,738 6,991,199 2,718,782 1,592,300 1,257,810 Employers................................................ -- -- -- -- -- ----------- ---------- ----------- ----------- ----------- 9,043,738 6,991,199 2,718,782 1,592,300 1,257,810 Repayment of loan interest................................ -- -- -- -- -- ----------- ---------- ----------- ----------- ----------- Total additions.................................... 53,584,082 31,973,516 11,201,840 9,286,191 3,788,555 ----------- ---------- ----------- ----------- ----------- DEDUCT: Withdrawals.............................................. 7,502,726 8,018 1,593 1,393 2,267 Administrative expenses.................................. -- -- -- -- -- Transfer to other plans.................................. 2,909,337 2,119,563 1,107,463 998,541 417,258 ----------- ---------- ----------- ----------- ----------- Total deductions................................... 10,412,063 2,127,581 1,109,056 999,934 419,525 ----------- ---------- ----------- ----------- ----------- OPTION TRANSFERS.......................................... (29,828,826) (9,920,715) (570,864) (5,803,164) 392,926 ----------- ---------- ----------- ----------- ----------- NET ASSETS AVAILABLE FOR PLAN BENEFITS, end of year.............................................. $233,697,409 $86,828,801 $32,483,344 $31,556,418 $17,231,725 ============ =========== =========== =========== =========== NONPARTICIPANT- DIRECTED PARTICIPANT-DIRECTED INVESTMENTS INVESTMENT ----------------------------------------- --------------- DISCONTINUED TENNECO INC. TIME INVESTMENT PARTICIPANT COMMON DEPOSITS OPTIONS LOANS STOCK -------- ------------ ----------- ------------ NET ASSETS AVAILABLE FOR PLAN BENEFITS, beginning of year........................................ $426,040,723 $ 172,017 $27,619,916 $ 76,627,571 ADD: Dividends -- Tenneco Inc. common stock.............................. -- -- -- 3,517,196 Registered investment companies........................ -- 6,982 -- -- Interest.................................................. 24,424,327 13,338 -- -- ------------ --------- ----------- ------------ 24,424,327 20,320 -- 3,517,196 Net appreciation in fair value of investments............. -- 7,592 -- 15,514,355 ------------ --------- ----------- ------------ Net investment income.............................. 24,424,327 27,912 -- 19,031,551 Contributions -- Employees................................................ 25,359,397 10,840 -- -- Employers................................................ -- -- -- 44,180,868 ------------ --------- ----------- ------------ 25,359,397 10,840 -- 44,180,868 Repayment of loan interest................................ -- -- 1,917,000 -- ------------ --------- ----------- ------------ Total additions.................................... 49,783,724 38,752 1,917,000 63,212,419 ------------ --------- ----------- ------------ DEDUCT: Withdrawals.............................................. 55,238,262 -- 1,055,627 1,248,942 Administrative expenses.................................. 634,419 13,325 -- -- Transfer to other plans.................................. 3,051,930 -- 470,820 1,782,118 ------------ --------- ----------- ------------ Total deductions................................... 58,924,611 13,325 1,526,447 3,031,060 ------------ --------- ----------- ------------ OPTION TRANSFERS.......................................... 52,003,235 (110,677) (661,371) (5,500,544) ------------ --------- ----------- ------------ NET ASSETS AVAILABLE FOR PLAN BENEFITS, end of year.............................................. $468,903,071 $ 86,767 $27,349,098 $131,308,386 ============ ========= =========== ============ TOTAL ----- NET ASSETS AVAILABLE FOR PLAN BENEFITS, beginning of year........................................ $ 883,222,542 ADD: Dividends -- Tenneco Inc. common stock.............................. 11,399,437 Registered investment companies........................ 10,146,008 Interest.................................................. 24,437,665 -------------- 45,983,110 Net appreciation in fair value of investments............. 85,731,035 -------------- Net investment income.............................. 131,714,145 Contributions -- Employees................................................ 46,974,066 Employers................................................ 44,180,868 -------------- 91,154,934 Repayment of loan interest................................ 1,917,000 -------------- Total additions.................................... 224,786,079 -------------- DEDUCT: Withdrawals.............................................. 65,058,828 Administrative expenses.................................. 647,744 Transfer to other plans.................................. 12,857,030 -------------- Total deductions................................... 78,563,602 -------------- OPTION TRANSFERS.......................................... -- -------------- NET ASSETS AVAILABLE FOR PLAN BENEFITS, end of year.............................................. $1,029,445,019 ==============
This exhibit is an integral part of the accompanying financial statements. 14 15 SCHEDULE I TENNECO THRIFT PLAN SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1996
IDENTITY OF ISSUE SHARES OR CURRENT VALUE DESCRIPTION OF ASSET FACE VALUE COST VALUE ----------------- -------------------- ---------- ---- ------- CORPORATE SECURITIES: Tenneco Inc.*.................. Tenneco Inc. common stock 7,024,248 $ 281,083,329 $ 316,969,191 El Paso Natural Gas Company.... El Paso Natural Gas Company common stock 637,280 25,746,686 32,182,638 Newport News Shipbuilding Inc.......................... Newport News Shipbuilding Inc. common stock 1,370,491 19,596,752 20,557,371 -------------- -------------- Total corporate securities 326,426,767 369,709,200 -------------- -------------- COLLECTIVE TRUST FUNDS: BZW Barclays Global Investors.................... BZW Barclays Equity Index Fund 3,865,996 64,993,385 75,787,788 BZW Barclays Global Investors.................... BZW Barclays U.S. Debt Market Index Fund 1,187,604 13,489,594 14,091,620 -------------- -------------- Total collective trust funds 78,482,979 89,879,408 -------------- -------------- REGISTERED INVESTMENT COMPANIES: Fidelity Investments Institutional Services Co.... Fidelity Growth Company Fund 2,926,447 95,602,471 118,404,041 INVESCO Funds Group, Inc....... INVESCO Value Trust Total Return Fund 384,149 8,902,451 9,334,811 Putnam Management Company...... Putnam New Opportunities Fund 1,362,677 56,571,745 55,365,566 Franklin Templeton............. Templeton Foreign Fund 1,149,258 11,343,518 11,906,314 -------------- -------------- Total registered investment companies 172,420,185 195,010,732 -------------- -------------- U.S. TREASURY NOTES: U.S. Treasury note, 6.750%, due February 28, U.S. Government................ 1997 $ 12,000,000 12,031,746 12,028,080 U.S. Treasury note, 6.875%, due March 31, U.S. Government................ 1997 12,000,000 12,034,124 12,043,080 U.S. Treasury note, 6.875%, due April 30, U.S. Government................ 1997 12,000,000 12,028,272 12,060,000 U.S. Government................ U.S. Treasury note, 6.750%, due May 31, 1997 12,000,000 12,017,640 12,061,920 U.S. Government................ U.S. Treasury note, 6.375%, due June 30, 1997 6,000,000 5,993,941 6,030,960 U.S. Government................ U.S. Treasury note, 5.500%, due July 31, 1997 6,000,000 5,974,718 6,002,820 U.S. Treasury note, 5.625%, due August 31, U.S. Government................ 1997 6,000,000 5,965,993 6,001,860 U.S. Treasury note, 5.500%, due September 30, U.S. Government................ 1997 6,000,000 5,939,511 5,999,040 U.S. Treasury note, 5.750%, due October 31, U.S. Government................ 1997 6,000,000 5,933,457 6,008,460 U.S. Treasury note, 7.375%, due November 15, U.S. Government................ 1997 6,000,000 5,985,009 6,086,220 U.S. Treasury note, 7.375%, due November 15, U.S. Government................ 1997 6,000,000 5,979,726 6,086,220 U.S. Treasury note, 7.375%, due November 15, U.S. Government................ 1997 6,000,000 6,000,000 6,086,220 U.S. Treasury note, 7.250%, due February 15, U.S. Government................ 1998 6,000,000 6,016,811 6,098,460 -------------- -------------- Total U.S. Treasury notes 101,900,948 102,593,340 -------------- -------------- BASIC AGREEMENTS: BASIC Agreement on U.S. Treasury note, Bankers Trust Co. New York..... 6.750%, due February 28, 1997 -- $ 2,709 $ 6,376 BASIC Agreement on U.S. Treasury note, Bankers Trust Co. New York..... 6.875%, due March 31, 1997 -- 4,029 (4,927) BASIC Agreement on U.S. Treasury note, Bankers Trust Co. New York..... 6.875%, due April 30, 1997 -- 5,606 (26,122) BASIC Agreement on U.S. Treasury note, Bankers Trust Co. New York..... 6.750%, due May 31, 1997 -- 6,518 (37,762) BASIC Agreement on U.S. Treasury note, Bankers Trust Co. New York..... 6.375%, due June 30, 1997 -- 9,119 (27,900) BASIC Agreement on U.S. Treasury note, Bankers Trust Co. New York..... 5.500%, due July 31, 1997 -- 3,802 (24,300) BASIC Agreement on U.S. Treasury note, Bankers Trust Co. New York..... 5.625%, due August 31, 1997 -- 4,745 (31,122) BASIC Agreement on U.S. Treasury note, Bankers Trust Co. New York..... 5.500%, due September 30, 1997 -- 5,087 (54,442) BASIC Agreement on U.S. Treasury note, Bankers Trust Co. New York..... 5.750%, due October 31, 1997 -- 5,658 (69,345) BASIC Agreement on U.S. Treasury note, Bankers Trust Co. New York..... 7.375%, due November 15, 1997 -- 6,496 (94,715) BASIC Agreement on U.S. Treasury note, Bankers Trust Co. New York..... 7.375%, due November 15, 1997 -- 6,121 (100,373) BASIC Agreement on U.S. Treasury note, Bankers Trust Co. New York..... 7.375%, due November 15, 1997 -- 5,711 (80,509) BASIC Agreement on U.S. Treasury note, Bankers Trust Co. New York..... 7.250%, due February 15, 1998 -- 7,524 (74,126) -------------- -------------- Total BASIC agreements 73,125 (619,267) -------------- -------------- MONEY MARKET FUND: NationsBank Texas*............. Nations Cash Reserves $319,522,676 319,522,676 319,522,676 -------------- -------------- Total money market fund 319,522,676 319,522,676 -------------- -------------- PARTICIPANT LOANS RECEIVABLE TENNECO INC. THRIFT PLAN* (Interest rates ranging from 6% to 9.75%) $ 36,479,042 36,479,042 36,479,042 -------------- -------------- Total assets held for investment purposes $1,035,305,722 $1,112,575,131 ============== ==============
. - ------------------------- * Indicated party in interest. 15 16 SCHEDULE II TENNECO THRIFT PLAN SCHEDULE OF REPORTABLE TRANSACTIONS -- SERIES OF TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1996
NUMBER OF COST TRANSACTIONS OF ASSETS ----------------- PURCHASE SELLING SOLD OR NET GAIN IDENTITY OF PARTY INVOLVED DESCRIPTION PURCHASES SALES PRICE(A)(C) PRICE(B)(C) DISTRIBUTED (LOSS) - -------------------------- ----------- --------- ----- ----------- ----------- ----------- -------- Tenneco Inc............... Tenneco Inc. common 48 119 $ 13,566,482 $ 86,840,933 $ 73,834,207 $13,006,726 stock BZW Barclays Global Investors............... BZW Barclays Equity 84 109 74,894,356 10,512,235 9,900,971 611,264 Index Fund Fidelity Investments Institutional Services Co...................... Fidelity Growth 140 135 40,039,610 20,009,685 15,994,838 4,014,847 Company Fund Putnam Management Company................. Putnam New 149 39 59,789,544 3,230,409 3,217,800 12,609 Opportunities Fund NationsBank Texas......... Nations Cash Reserves 286 318 627,662,985 308,140,321 308,140,321 -- Wachovia Bank of Georgia................. Wachovia Bank of 2 3 51,000,000 75,000,000 75,000,000 -- Georgia Flex Fund Wachovia Bank N.A......... Wachovia Bank N.A. 2 3 51,000,000 75,000,000 75,000,000 -- Flex Fund
(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 Tenneco Thrift Plan assets held on January 1, 1996. The Trustee initiates and consummates all investment transactions at the direction of the participants. 16 17 SCHEDULE III TENNECO THRIFT PLAN SCHEDULE OF REPORTABLE TRANSACTIONS - SINGLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1996
COST OF ASSETS PURCHASE SELLING SOLD OR NET GAIN IDENTITY OF PARTY INVOLVED DESCRIPTION PRICE(A)(C) PRICE(B)(C) DISTRIBUTED (LOSS) - -------------------------- ------------------------------------- ----------- ----------- ----------- -------- BZW Barclays Global Investors............... BZW Barclays Equity Index Fund Purchase $ 66,940,473 $-- $-- $-- NationsBank Texas......... Nations Cash Reserves Purchase 263,936,708 -- -- --
(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 single transactions which exceed 5 percent of the market value of the Tenneco Thrift Plan assets held on January 1, 1996. The Trustee initiates and consummates all investment transactions at the direction of the participants. 17 18 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 Date: June 27, 1997 By: /s/ DANA G. MEAD --------------------------------------------- Dana G. Mead Chairman of the Tenneco Benefits Committee
19 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 (File Nos. 333-17487 and 333-27281). ARTHUR ANDERSEN LLP Houston, Texas June 27, 1997 -----END PRIVACY-ENHANCED MESSAGE-----