-----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, DYQWdCvqr0gCgnXoa0HpbweIJdXcohoQC40JvzJUTmULo97k/ptyOWyV62cIKY8P NapBClWmCMbBpKtL0vSgRg== 0000950137-99-002306.txt : 19990629 0000950137-99-002306.hdr.sgml : 19990629 ACCESSION NUMBER: 0000950137-99-002306 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990628 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: SEC FILE NUMBER: 001-12387 FILM NUMBER: 99653503 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, 1998 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 statements of net assets available for plan benefits of the Tenneco Thrift Plan For Hourly Employees as of December 31, 1998 and 1997, and the related statement of changes in net assets available for plan benefits for the year ended December 31, 1998. These financial statements and the supplemental schedules referred to below are the responsibility of the Tenneco Benefits Committee. Our responsibility is to express an opinion on these financial statements and supplemental 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 For Hourly Employees as of December 31, 1998 and 1997, and the changes in net assets available for plan benefits for the year ended December 31, 1998, 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, 1998, included as Schedule I, reportable transactions -- series of transactions for the year ended December 31, 1998, included as Schedule II, reportable transactions -- single transactions for the year ended December 31, 1998, included as Schedule III, and nonexempt transactions for the year ended December 31, 1998, included as Schedule IV, 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 15, 1999 2 3 TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS DECEMBER 31, 1998 AND 1997
1998 1997 ---- ---- ASSETS: Investments, at market value -- Corporate securities -- Tenneco Inc. common stock............................ $ 21,142,667 $17,570,588 El Paso Energy (formerly, El Paso Natural Gas Company) common stock............................... 1,431,440 1,551,113 Newport News Shipbuilding Inc. common stock.......... 1,445,023 1,259,181 Other................................................ -- 126,581 ------------ ----------- 24,019,130 20,507,463 Collective trust funds -- BZW Barclays Equity Index Fund....................... 17,366,091 7,929,132 BZW Barclays U.S. Debt Market Index Fund............. 4,813,406 3,098,425 Other................................................ 2,109,680 2,168,134 ------------ ----------- 24,289,177 13,195,691 Registered investment companies -- Fidelity Growth Company Fund......................... 28,848,110 20,635,599 INVESCO Value Trust Total Return Fund................ 13,718,983 9,010,952 Putnam New Opportunities Fund........................ 9,139,269 4,925,755 Templeton Foreign Fund............................... 996,608 827,805 Other................................................ 5,621,801 4,865,576 ------------ ----------- 58,324,771 40,265,687 Pooled separate accounts............................... 2,589,321 -- Guaranteed investment contract......................... 480,379 193,658 Bankers Trust Pyramid Directed Account Cash Fund....... 1,097,290 -- Nations Cash Reserves.................................. 21,633,410 18,350,081 Participant loans receivable........................... 5,170,173 2,721,460 ------------ ----------- Total investments.................................... 137,603,651 95,234,040 RECEIVABLES: Employees' contributions.................................. 352,471 38,161 Employers' contributions.................................. 163,442 19,540 Accrued interest and dividends............................ 116,602 96,028 ------------ ----------- Total receivables.................................... 632,515 153,729 CASH...................................................... -- 24 ------------ ----------- Total assets......................................... 138,236,166 95,387,793 LIABILITIES: Due to broker and other................................... 294,995 56,904 ------------ ----------- Total liabilities.................................... 294,995 56,904 ------------ ----------- NET ASSETS AVAILABLE FOR PLAN BENEFITS...................... $137,941,171 $95,330,889 ============ ===========
The accompanying notes to financial statements are an integral part of these financial statements. 3 4 TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS FOR THE YEAR ENDED DECEMBER 31, 1998 NET ASSETS AVAILABLE FOR PLAN BENEFITS, beginning of year... $ 95,330,889 ------------ ADD: Dividends -- Tenneco Inc. common stock.............................. 631,059 Other corporate securities............................. 40,851 Registered investment companies........................ 2,947,585 Interest.................................................. 1,090,235 ------------ 4,709,730 Net appreciation in fair value of investments............. 7,372,200 ------------ Net investment income................................ 12,081,930 Contributions -- Employees.............................................. 16,208,702 Employers.............................................. 6,968,084 Rollovers.............................................. 150,832 ------------ 23,327,618 Repayment of loan interest................................ 247,759 Transfers from other plans (Note 5)....................... 13,407,835 ------------ Total additions...................................... 49,065,142 ------------ DEDUCT: Withdrawals............................................... 6,359,481 Administrative expenses................................... 95,379 ------------ Total deductions..................................... 6,454,860 ------------ NET ASSETS AVAILABLE FOR PLAN BENEFITS, end of year......... $137,941,171 ============
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, 1998 AND 1997 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 document for a more complete description of the Hourly Thrift Plan's provisions. GENERAL The Hourly Thrift Plan was established effective 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 hourly employees of Tenneco Inc., its subsidiaries and covered groups (collectively, the Employers) that have adopted the Hourly Thrift Plan. CONTRIBUTIONS Eligible employees electing to participate in the Hourly Thrift Plan may make salary deferral contributions (Salary Deferral Contribution Account) by payroll deduction of not less than 1 percent nor greater than 8 percent of compensation (or such percentage of compensation greater than 8 percent as may be specified in a covered group's special appendix to the Hourly Thrift Plan), as defined, with such contributions limited to $10,000 for 1998. The Employers contribute on behalf of the participants a matching contribution equal to an amount detailed in each group's special appendix. The Employers' matching contributions are generally invested in Tenneco Inc. common stock. Certain covered groups may direct the Employers' matching contributions to the investment options listed in Note 3. 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 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 schedule detailed in each covered group's special appendix. 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. Certain participants, as specified in the covered group's special appendix, who have attained age 55 may elect an in-service withdrawal. Certain participants, as specified in the covered group's special appendix, who have not attained age 59 1/2 may elect to withdraw all or part of their account balances, reduced by the portion of their account balances attributable to salary deferral contributions. Certain participants, as specified in the covered group's special appendix, may, subject to the approval of the plan administrator, make a hardship withdrawal from their Salary Deferral Contribution Accounts, excluding gains and earnings in such accounts. A hardship withdrawal shall only be made in the event of a financial need constituting a hardship. 5 6 Certain participants may borrow from their accounts 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 their account balances. 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 Wall Street Journal Prime Rate. Principal and interest are paid through payroll deductions. ADMINISTRATION The Hourly Thrift Plan is administered by the Tenneco Benefits Committee (the Committee). NationsBank of Texas, N.A. (the Trustee), was the trustee of the Hourly Thrift Plan Trust (the Trust) prior to February 1, 1998. During 1997, the Defined Contribution Division of NationsBank of Texas, N.A., was purchased by Bankers Trust Company. Effective February 1, 1998, the Plan transferred all assets to Bankers Trust Company as the new trustee. 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. Collective trust funds and pooled separate accounts are valued by reference to published market data, if available, of the underlying assets. Guaranteed investment contracts are carried at contract value which approximates fair value. Participant loans receivable are reported at cost which approximates fair 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 Certain administrative expenses are currently paid by the Employers. In the event expenses are not paid by the Employers, such expenses are paid by the Hourly Thrift Plan. 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 1997 amounts have been reclassified to conform with the 1998 presentation. 3. INVESTMENT OPTIONS: Participants may invest salary deferral contributions credited to their accounts in one or more of the following: Tenneco Inc. Common Stock -- Invests in Tenneco Inc. common stock and short-term investments for liquidity purposes. 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. 6 7 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. 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 Shipbuilding Inc. common stock, received through a 1996 distribution to Tenneco Inc. shareholders, and El Paso Energy (formerly, El Paso Natural Gas Company) common stock, received through a 1996 merger transaction through an affiliate of Tenneco Inc., are held in separate funds; however, participants cannot direct contributions or investment transfers to these funds. Interest and dividends earned on these funds are transferred to the Money Market Fund. See Exhibits 1 and 2 for individual fund information. 4. RISKS AND UNCERTAINTIES: The Hourly Thrift Plan provides for investment in corporate securities, collective trust funds, registered investment companies, pooled separate accounts, a guaranteed investment contract and money market funds. Investment securities, in general, are exposed to various risks, such as interest rate, credit and overall market volatility risk. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the statements of net assets available for plan benefits and participant accounts. 5. TRANSFERS FROM OTHER PLANS: Effective April 22, 1998, the hourly rated employees of Tenneco Packaging at the Pomona, California; Visalia, California; Kent, Washington; and Portland, Oregon, facilities became eligible to participate in the Hourly Thrift Plan. On December 31, 1998, the Richter Manufacturing Corporation Profit Sharing and 401(k) Plan (the Richter Plan) was merged into the Hourly Thrift Plan. In conjunction with the merger, the Hourly Thrift Plan received approximately $3,400,000 from the Richter Plan trustee. Subsequent to December 31, 1998, the Richter Plan's assets were liquidated and reinvested into similar investment options available under the Hourly Thrift Plan. These assets are recorded in Exhibits 1 and 2 as Merger Assets. On December 31, 1998, the hourly rated employees of Tenneco Packaging at the Hayward, California; Pomona, California; Orlando, Florida; Alsip, Illinois; Plymouth, Indiana; Wurtland, Kentucky; Glen Falls, New York; Granite Falls, North Carolina; Corsicana, Texas; and Wenatchee, Washington, facilities became eligible to participate in the Hourly Thrift Plan. In addition, on December 31, 1998, account balances in the Astro-Valcour, Inc. 401(k) Savings and Retirement Accumulation Plan and the Astro-Valcour, Inc. Microfoam Hourly 401(k) Saving Plan (the AVI Plans) were merged into the Hourly Thrift Plan. In conjunction with the merger, the Hourly Thrift Plan received approximately $10,000,000 from the AVI Plans' trustee. Subsequent to December 31, 1998, the AVI Plans' assets were liquidated and reinvested into similar investment options available under the Hourly Thrift Plan. These assets are recorded in Exhibits 1 and 2 as Merger Assets. Effective December 31, 1997, the hourly participants of the Tenneco 401(k) Savings Plan for Chippewa Falls (the Chippewa Falls Plan) became eligible to participate in the Hourly Thrift Plan, and their account 7 8 balances maintained under the Chippewa Falls Plan were merged into the Hourly Thrift Plan. In conjunction with the merger, the Hourly Thrift Plan received approximately $2,500,000 from the trustee of the Chippewa Falls Plan. Subsequent to December 31, 1997, the Chippewa Falls Plan's assets were liquidated and reinvested into similar investment options available under the Hourly Thrift Plan. These assets are recorded in Exhibit 1 as Merger Assets. In addition, effective December 31, 1997, the hourly participants of the Clevite Bargaining Investment Plan (the Clevite Plan) became eligible to participate in the Hourly Thrift Plan, and their account balances maintained under the Clevite Plan were merged into the Hourly Thrift Plan. In conjunction with the merger, the Hourly Thrift Plan received approximately $5,000,000 from the trustee of the Clevite Plan. Subsequent to December 31, 1997, the Clevite Plan's assets were liquidated and reinvested into similar investment options available under the Hourly Thrift Plan. These assets are recorded in Exhibit 1 as Merger Assets. 6. FEDERAL INCOME TAXES: The Hourly Thrift Plan obtained its latest determination letter on March 20, 1998, in which the Internal Revenue Service stated that the Hourly Thrift Plan, as then designed, was in compliance with the applicable requirements of the Internal Revenue Code. The Hourly Thrift Plan has been amended since receiving the determination letter. However, the plan administrator believes that the Hourly Thrift Plan is currently designed and being operated in compliance with the applicable requirements of the Internal Revenue Code. Therefore, the plan administrator believes that the Hourly 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. 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. SUBSEQUENT EVENT: On April 29, 1999, Tenneco Inc. announced that its board of directors had approved a separation of its automotive and specialty packaging business into two independent companies. The separation will be completed by the distribution of the common stock of Tenneco Packaging to the holders of Tenneco Inc. commons stock (the Spin-off). Upon completion of the Spin-off, current owners of Tenneco Inc. common stock will own common equity securities of Tenneco Packaging and Tenneco Inc. which in turn will then own the assets, liabilities and operations of Tenneco Inc.'s automotive business. In connection with the Spin-off, Tenneco Packaging will become the sole sponsor of the Hourly Thrift Plan from and after the Spin-off date. Tenneco Automotive will establish a defined contribution plan to which the account balances of retained and former employees of Tenneco Automotive in the Hourly Thrift Plan will be transferred. 8 9 EXHIBIT 1 TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION AS OF DECEMBER 31, 1998
PARTICIPANT-DIRECTED INVESTMENTS --------------------------------------------------------------------------------------- BZW BARCLAYS FIDELITY INVESCO PUTNAM TENNECO INC. BZW BARCLAYS U.S. DEBT GROWTH VALUE TRUST NEW COMMON EQUITY INDEX MARKET INDEX COMPANY TOTAL RETURN OPPORTUNITIES STOCK FUND FUND FUND FUND FUND ------------ ------------ ------------ -------- ------------ ------------- ASSETS: Investments, at market value -- Corporate securities -- Tenneco Inc. common stock......... $11,355,894 $ -- $ -- $ -- $ -- $ -- El Paso Energy common stock....... -- -- -- -- -- -- Newport News Shipbuilding Inc. common stock.................... -- -- -- -- -- -- ----------- ----------- ---------- ----------- ----------- ---------- 11,355,894 -- -- -- -- -- Collective trust funds -- BZW Barclays Equity Index Fund.... -- 17,366,091 -- -- -- -- BZW Barclays U.S. Debt Market Index Fund...................... -- -- 4,813,406 -- -- -- Other............................. -- -- -- -- -- -- ----------- ----------- ---------- ----------- ----------- ---------- -- 17,366,091 4,813,406 -- -- -- Registered investment companies -- Fidelity Growth Company Fund...... -- -- -- 27,280,997 -- -- INVESCO Value Trust Total Return Fund............................ -- -- -- -- 13,718,983 -- Putnam New Opportunities Fund..... -- -- -- -- -- 9,139,269 Templeton Foreign Fund............ -- -- -- -- -- -- Other............................. -- -- -- -- -- -- ----------- ----------- ---------- ----------- ----------- ---------- -- -- -- 27,280,997 13,718,983 9,139,269 Pooled separate accounts........... -- -- -- -- -- -- Guaranteed investment contract..... -- -- -- -- -- -- Bankers Trust Pyramid Directed Account Cash Fund................. 366,333 46 7 36 13 72 Nations Cash Reserves.............. -- -- -- -- -- -- Participant loans receivable....... -- -- -- -- -- -- ----------- ----------- ---------- ----------- ----------- ---------- Total investments............... 11,722,227 17,366,137 4,813,413 27,281,033 13,718,996 9,139,341 Receivables: Employees' contributions........... 51,645 58,251 22,256 64,785 29,837 49,246 Employers' contributions........... -- 2,297 185 7,089 3,391 1,468 Accrued interest and dividends..... 1,918 489 212 631 8,973 254 ----------- ----------- ---------- ----------- ----------- ---------- Total receivables............... 53,563 61,037 22,653 72,505 42,201 50,968 ----------- ----------- ---------- ----------- ----------- ---------- Total assets.................... 11,775,790 17,427,174 4,836,066 27,353,538 13,761,197 9,190,309 LIABILITIES: Due to broker and other.............. -- 53,456 16,974 97,563 17,667 95,956 ----------- ----------- ---------- ----------- ----------- ---------- Total liabilities............... -- 53,456 16,974 97,563 17,667 95,956 OPTION TRANSFERS RECEIVABLE (PAYABLE)............................ (25,154) (7,585) (5,681) 14,397 (25,364) 44,988 ----------- ----------- ---------- ----------- ----------- ---------- NET ASSETS AVAILABLE FOR PLAN BENEFITS............................. $11,750,636 $17,366,133 $4,813,411 $27,270,372 $13,718,166 $9,139,341 =========== =========== ========== =========== =========== ========== PARTICIPANT-DIRECTED INVESTMENTS -------------------------------------- TEMPLETON MONEY FOREIGN MARKET PARTICIPANT FUND FUND LOANS --------- ------ ----------- ASSETS: Investments, at market value -- Corporate securities -- Tenneco Inc. common stock......... $ -- $ -- $ -- El Paso Energy common stock....... -- -- -- Newport News Shipbuilding Inc. common stock.................... -- -- -- ---------- ----------- ---------- -- -- -- Collective trust funds -- BZW Barclays Equity Index Fund.... -- -- -- BZW Barclays U.S. Debt Market Index Fund...................... -- -- -- Other............................. -- -- -- ---------- ----------- ---------- -- -- -- Registered investment companies -- Fidelity Growth Company Fund...... -- -- -- INVESCO Value Trust Total Return Fund............................ -- -- -- Putnam New Opportunities Fund..... -- -- -- Templeton Foreign Fund............ 996,608 -- -- Other............................. -- -- -- ---------- ----------- ---------- 996,608 -- -- Pooled separate accounts........... -- -- -- Guaranteed investment contract..... -- -- -- Bankers Trust Pyramid Directed Account Cash Fund................. -- 308,925 -- Nations Cash Reserves.............. -- 21,633,410 -- Participant loans receivable....... -- -- 4,130,632 ---------- ----------- ---------- Total investments............... 996,608 21,942,335 4,130,632 Receivables: Employees' contributions........... 9,699 66,752 -- Employers' contributions........... 318 9,911 -- Accrued interest and dividends..... 22 90,846 -- ---------- ----------- ---------- Total receivables............... 10,039 167,509 -- ---------- ----------- ---------- Total assets.................... 1,006,647 22,109,844 4,130,632 LIABILITIES: Due to broker and other.............. 10,396 -- -- ---------- ----------- ---------- Total liabilities............... 10,396 -- -- OPTION TRANSFERS RECEIVABLE (PAYABLE)............................ 357 11,209 (38,820) ---------- ----------- ---------- NET ASSETS AVAILABLE FOR PLAN BENEFITS............................. $ 996,608 $22,121,053 $4,091,812 ========== =========== ========== NONPARTICIPANT- DIRECTED INVESTMENTS ----------------------------------------------------------------- EL PASO NEWPORT NEWS TENNECO INC. ENERGY SHIPBUILDING COMMON COMMON INC. CLEARING MERGER STOCK STOCK COMMON STOCK ACCOUNT ASSETS TOTAL ------------ ------- ------------ -------- ------ ----- ASSETS: Investments, at market value -- Corporate securities -- Tenneco Inc. common stock......... $ 9,786,773 $ -- $ -- $ -- $ -- $ 21,142,667 El Paso Energy common stock....... -- 1,428,342 -- 3,098 -- 1,431,440 Newport News Shipbuilding Inc. common stock.................... -- -- 1,445,023 -- -- 1,445,023 ----------- ---------- ---------- -------- ----------- ------------ 9,786,773 1,428,342 1,445,023 3,098 -- 24,019,130 Collective trust funds -- BZW Barclays Equity Index Fund.... -- -- -- -- -- 17,366,091 BZW Barclays U.S. Debt Market Index Fund...................... -- -- -- -- -- 4,813,406 Other............................. -- -- -- -- 2,109,680 2,109,680 ----------- ---------- ---------- -------- ----------- ------------ -- -- -- -- 2,109,680 24,289,177 Registered investment companies -- Fidelity Growth Company Fund...... -- -- -- -- 1,567,113 28,848,110 INVESCO Value Trust Total Return Fund............................ -- -- -- -- -- 13,718,983 Putnam New Opportunities Fund..... -- -- -- -- -- 9,139,269 Templeton Foreign Fund............ -- -- -- -- -- 996,608 Other............................. -- -- -- -- 5,621,801 5,621,801 ----------- ---------- ---------- -------- ----------- ------------ -- -- -- -- 7,188,914 58,324,771 Pooled separate accounts........... -- -- -- -- 2,589,321 2,589,321 Guaranteed investment contract..... -- -- -- -- 480,379 480,379 Bankers Trust Pyramid Directed Account Cash Fund................. 182,983 27,189 25,022 186,664 -- 1,097,290 Nations Cash Reserves.............. -- -- -- -- -- 21,633,410 Participant loans receivable....... -- -- -- -- 1,039,541 5,170,173 ----------- ---------- ---------- -------- ----------- ------------ Total investments............... 9,969,756 1,455,531 1,470,045 189,762 13,407,835 137,603,651 Receivables: Employees' contributions........... -- -- -- -- -- 352,471 Employers' contributions........... 138,783 -- -- -- -- 163,442 Accrued interest and dividends..... 3,999 7,966 217 1,075 -- 116,602 ----------- ---------- ---------- -------- ----------- ------------ Total receivables............... 142,782 7,966 217 1,075 -- 632,515 ----------- ---------- ---------- -------- ----------- ------------ Total assets.................... 10,112,538 1,463,497 1,470,262 190,837 13,407,835 138,236,166 LIABILITIES: Due to broker and other.............. -- 2,983 -- -- -- 294,995 ----------- ---------- ---------- -------- ----------- ------------ Total liabilities............... -- 2,983 -- -- -- 294,995 OPTION TRANSFERS RECEIVABLE (PAYABLE)............................ 14,432 (8,658) (757) 26,636 -- -- ----------- ---------- ---------- -------- ----------- ------------ NET ASSETS AVAILABLE FOR PLAN BENEFITS............................. $10,126,970 $1,451,856 $1,469,505 $217,473 $13,407,835 $137,941,171 =========== ========== ========== ======== =========== ============
This exhibit is an integral part of the accompanying financial statements. 9 10 EXHIBIT 1 CONTINUED TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION AS OF DECEMBER 31, 1997
PARTICIPANT-DIRECTED INVESTMENTS --------------------------------------------------------------------------------------- BZW BARCLAYS FIDELITY INVESCO PUTNAM TENNECO INC. BZW BARCLAYS U.S. DEBT GROWTH VALUE TRUST NEW COMMON EQUITY INDEX MARKET INDEX COMPANY TOTAL RETURN OPPORTUNITIES STOCK FUND FUND FUND FUND FUND ------------ ------------ ------------ ----------- ------------ ------------- ASSETS: Investments, at market value -- Corporate securities -- Tenneco Inc. common stock.......... $10,361,095 $ -- $ -- $ -- $ -- $ -- El Paso Natural Gas Company common stock............................ -- -- -- -- -- -- Newport News Shipbuilding Inc. common stock..................... -- -- -- -- -- -- Other.............................. -- -- -- -- -- -- ----------- ----------- ---------- ----------- ----------- ---------- 10,361,095 -- -- -- -- -- Collective trust funds -- BZW Barclays Equity Index Fund..... -- 7,929,132 -- -- -- -- BZW Barclays U.S. Debt Market Index Fund............................. -- -- 3,098,425 -- -- -- Other.............................. -- -- -- -- -- -- ----------- ----------- ---------- ----------- ----------- ---------- -- 7,929,132 3,098,425 -- -- -- Registered investment companies -- Fidelity Growth Company Fund....... -- -- -- 20,635,599 -- -- INVESCO Value Trust Total Return Fund............................. -- -- -- -- 9,010,952 -- Putnam New Opportunities Fund...... -- -- -- -- -- 4,925,755 Templeton Foreign Fund............. -- -- -- -- -- -- Other.............................. -- -- -- -- -- -- ----------- ----------- ---------- ----------- ----------- ---------- -- -- -- 20,635,599 9,010,952 4,925,755 Nations Cash Reserves............... 240,872 -- -- -- -- -- Guaranteed investment contract...... -- -- -- -- -- -- Participant loans receivable........ -- -- -- -- -- -- ----------- ----------- ---------- ----------- ----------- ---------- Total investments................ 10,601,967 7,929,132 3,098,425 20,635,599 9,010,952 4,925,755 Receivables: Employees' contributions............ 13,012 4,757 581 3,799 1,196 7,755 Employers' contributions............ -- -- -- -- -- -- Accrued interest and dividends...... 1,498 113 7 60 2,323 234 ----------- ----------- ---------- ----------- ----------- ---------- Total receivables................ 14,510 4,870 588 3,859 3,519 7,989 Cash................................ -- 15 9 -- -- -- ----------- ----------- ---------- ----------- ----------- ---------- Total assets..................... 10,616,477 7,934,017 3,099,022 20,639,458 9,014,471 4,933,744 LIABILITIES: Other................................. -- -- -- -- -- -- ----------- ----------- ---------- ----------- ----------- ---------- Total liabilities................ -- -- -- -- -- -- OPTION TRANSFERS RECEIVABLE (PAYABLE)............................. 92,908 2,613,287 (291) (6,566) 2,916,525 194,074 ----------- ----------- ---------- ----------- ----------- ---------- NET ASSETS AVAILABLE FOR PLAN BENEFITS.............................. $10,709,385 $10,547,304 $3,098,731 $20,632,892 $11,930,996 $5,127,818 =========== =========== ========== =========== =========== ========== PARTICIPANT-DIRECTED INVESTMENTS ------------------------------------- TEMPLETON MONEY FOREIGN MARKET PARTICIPANT FUND FUND LOANS --------- ----------- ----------- ASSETS: Investments, at market value -- Corporate securities -- Tenneco Inc. common stock.......... $ -- $ -- $ -- El Paso Natural Gas Company common stock............................ -- -- -- Newport News Shipbuilding Inc. common stock..................... -- -- -- Other.............................. -- -- -- -------- ----------- ---------- -- -- -- Collective trust funds -- BZW Barclays Equity Index Fund..... -- -- -- BZW Barclays U.S. Debt Market Index Fund............................. -- -- -- Other.............................. -- -- -- -------- ----------- ---------- -- -- -- Registered investment companies -- Fidelity Growth Company Fund....... -- -- -- INVESCO Value Trust Total Return Fund............................. -- -- -- Putnam New Opportunities Fund...... -- -- -- Templeton Foreign Fund............. 827,805 -- -- Other.............................. -- -- -- -------- ----------- ---------- 827,805 -- -- Nations Cash Reserves............... -- 17,750,920 -- Guaranteed investment contract...... -- -- -- Participant loans receivable........ -- -- 2,555,274 -------- ----------- ---------- Total investments................ 827,805 17,750,920 2,555,274 Receivables: Employees' contributions............ 1,172 5,889 -- Employers' contributions............ -- -- -- Accrued interest and dividends...... 33 81,291 -- -------- ----------- ---------- Total receivables................ 1,205 87,180 -- Cash................................ -- -- -- -------- ----------- ---------- Total assets..................... 829,010 17,838,100 2,555,274 LIABILITIES: Other................................. -- -- -- -------- ----------- ---------- Total liabilities................ -- -- -- OPTION TRANSFERS RECEIVABLE (PAYABLE)............................. 66,262 1,510,462 157,467 -------- ----------- ---------- NET ASSETS AVAILABLE FOR PLAN BENEFITS.............................. $895,272 $19,348,562 $2,712,741 ======== =========== ========== NONPARTICIPANT-DIRECTED INVESTMENTS ------------------------------------------------------------------- NEWPORT NEWS EL PASO SHIPBUILDING TENNECO INC. ENERGY INC. COMMON COMMON COMMON CLEARING MERGER STOCK STOCK STOCK ACCOUNT ASSETS TOTAL ------------ ------------ ------------ -------- ----------- ----------- ASSETS: Investments, at market value -- Corporate securities -- Tenneco Inc. common stock.......... $7,113,310 $ -- $ -- $ -- $ 96,183 $17,570,588 El Paso Natural Gas Company common stock............................ -- 1,551,113 -- -- -- 1,551,113 Newport News Shipbuilding Inc. common stock..................... -- -- 1,259,181 -- -- 1,259,181 Other.............................. -- -- -- -- 126,581 126,581 ---------- ---------- ---------- -------- ----------- ----------- 7,113,310 1,551,113 1,259,181 -- 222,764 20,507,463 Collective trust funds -- BZW Barclays Equity Index Fund..... -- -- -- -- -- 7,929,132 BZW Barclays U.S. Debt Market Index Fund............................. -- -- -- -- -- 3,098,425 Other.............................. -- -- -- -- 2,168,134 2,168,134 ---------- ---------- ---------- -------- ----------- ----------- -- -- -- -- 2,168,134 13,195,691 Registered investment companies -- Fidelity Growth Company Fund....... -- -- -- -- -- 20,635,599 INVESCO Value Trust Total Return Fund............................. -- -- -- -- -- 9,010,952 Putnam New Opportunities Fund...... -- -- -- -- -- 4,925,755 Templeton Foreign Fund............. -- -- -- -- -- 827,805 Other.............................. -- -- -- -- 4,865,576 4,865,576 ---------- ---------- ---------- -------- ----------- ----------- -- -- -- -- 4,865,576 40,265,687 Nations Cash Reserves............... 165,369 30,644 27,363 134,913 -- 18,350,081 Guaranteed investment contract...... -- -- -- -- 193,658 193,658 Participant loans receivable........ -- -- -- -- 166,186 2,721,460 ---------- ---------- ---------- -------- ----------- ----------- Total investments................ 7,278,679 1,581,757 1,286,544 134,913 7,616,318 95,234,040 Receivables: Employees' contributions............ -- -- -- -- -- 38,161 Employers' contributions............ 19,540 -- -- -- -- 19,540 Accrued interest and dividends...... 1,008 8,724 78 659 -- 96,028 ---------- ---------- ---------- -------- ----------- ----------- Total receivables................ 20,548 8,724 78 659 -- 153,729 Cash................................ -- -- -- -- -- 24 ---------- ---------- ---------- -------- ----------- ----------- Total assets..................... 7,299,227 1,590,481 1,286,622 135,572 7,616,318 95,387,793 LIABILITIES: Other................................. -- -- -- -- 56,904 56,904 ---------- ---------- ---------- -------- ----------- ----------- Total liabilities................ -- -- -- -- 56,904 56,904 OPTION TRANSFERS RECEIVABLE (PAYABLE)............................. (645) (9,056) (376) 25,363 (7,559,414) -- ---------- ---------- ---------- -------- ----------- ----------- NET ASSETS AVAILABLE FOR PLAN BENEFITS.............................. $7,298,582 $1,581,425 $1,286,246 $160,935 $ -- $95,330,889 ========== ========== ========== ======== =========== ===========
This exhibit is an integral part of the accompanying financial statements. 10 11 EXHIBIT 2 TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1998
PARTICIPANT-DIRECTED INVESTMENTS --------------------------------------------------------------------------------------- BZW BARCLAYS FIDELITY INVESCO PUTNAM TENNECO INC. BZW BARCLAYS U.S. DEBT GROWTH VALUE TRUST NEW COMMON EQUITY INDEX MARKET INDEX COMPANY TOTAL RETURN OPPORTUNITIES STOCK FUND FUND FUND FUND FUND ------------ ------------ ------------ ----------- ------------ ------------- NET ASSETS AVAILABLE FOR PLAN BENEFITS, BEGINNING OF YEAR..... $10,709,385 $10,547,304 $3,098,731 $20,632,892 $11,930,996 $5,127,818 ----------- ----------- ---------- ----------- ----------- ---------- ADD: Dividends -- Tenneco Inc. ................. 353,833 -- -- -- -- -- Other corporate securities.... -- -- -- -- -- -- Registered investment companies................... -- -- -- 1,883,256 683,003 275,875 Interest........................ 12,883 -- -- -- -- -- ----------- ----------- ---------- ----------- ----------- ---------- 366,716 -- -- 1,883,256 683,003 275,875 Net appreciation (depreciation) in fair value of investments................... (1,386,704) 3,400,090 336,462 3,839,248 951,392 1,261,802 ----------- ----------- ---------- ----------- ----------- ---------- Net investment income (loss)................... (1,019,988) 3,400,090 336,462 5,722,504 1,634,395 1,537,677 Contributions -- Employees..................... 1,967,347 2,834,670 1,199,246 3,353,107 1,542,630 1,948,505 Employers..................... 280,155 107,589 7,412 492,023 260,053 67,360 Rollovers..................... 8,591 31,529 8,383 39,543 8,401 19,822 ----------- ----------- ---------- ----------- ----------- ---------- 2,256,093 2,973,788 1,215,041 3,884,673 1,811,084 2,035,687 Repayment of loan interest...... 13,727 23,511 7,924 31,138 14,114 16,504 Transfer from other plans (Note 5)............................ -- -- -- -- -- -- ----------- ----------- ---------- ----------- ----------- ---------- Total additions........... 1,249,832 6,397,389 1,559,427 9,638,315 3,459,593 3,589,868 ----------- ----------- ---------- ----------- ----------- ---------- DEDUCT: Withdrawals..................... 538,695 531,918 286,338 1,286,075 806,288 281,752 Administrative expenses......... -- -- -- -- -- -- ----------- ----------- ---------- ----------- ----------- ---------- Total deductions.......... 538,695 531,918 286,338 1,286,075 806,288 281,752 OPTION TRANSFERS, net............ 330,114 953,358 441,591 (1,714,760) (866,135) 703,407 ----------- ----------- ---------- ----------- ----------- ---------- NET ASSETS AVAILABLE FOR PLAN BENEFITS, end of year........... $11,750,636 $17,366,133 $4,813,411 $27,270,372 $13,718,166 $9,139,341 =========== =========== ========== =========== =========== ========== PARTICIPANT-DIRECTED INVESTMENTS ------------------------------------- TEMPLETON MONEY FOREIGN MARKET PARTICIPANT FUND FUND LOANS --------- ----------- ----------- NET ASSETS AVAILABLE FOR PLAN BENEFITS, BEGINNING OF YEAR..... $895,272 $19,348,562 $2,712,741 -------- ----------- ---------- ADD: Dividends -- Tenneco Inc. ................. -- -- -- Other corporate securities.... -- -- -- Registered investment companies................... 105,451 -- -- Interest........................ -- 1,046,596 -- -------- ----------- ---------- 105,451 1,046,596 -- Net appreciation (depreciation) in fair value of investments................... (169,426) -- -- -------- ----------- ---------- Net investment income (loss)................... (63,975) 1,046,596 -- Contributions -- Employees..................... 341,532 3,021,665 -- Employers..................... 16,727 530,948 -- Rollovers..................... 19,998 14,565 -- -------- ----------- ---------- 378,257 3,567,178 -- Repayment of loan interest...... 1,910 20,863 -- Transfer from other plans (Note 5)............................ -- -- -- -------- ----------- ---------- Total additions........... 316,192 4,634,637 -- -------- ----------- ---------- DEDUCT: Withdrawals..................... 73,131 1,736,732 268,126 Administrative expenses......... -- -- -- -------- ----------- ---------- Total deductions.......... 73,131 1,736,732 268,126 OPTION TRANSFERS, net............ (141,725) (125,414) 1,647,197 -------- ----------- ---------- NET ASSETS AVAILABLE FOR PLAN BENEFITS, end of year........... $996,608 $22,121,053 $4,091,812 ======== =========== ========== NONPARTICIPANT-DIRECTED INVESTMENTS -------------------------------------------------------------------------------- NEWPORT NEWS EL PASO SHIPBUILDING TENNECO INC. ENERGY INC. COMMON COMMON COMMON CLEARING MERGER STOCK STOCK STOCK ACCOUNT ASSETS TOTAL ------------ ---------- ------------ -------- ----------- ------------ NET ASSETS AVAILABLE FOR PLAN BENEFITS, BEGINNING OF YEAR..... $ 7,298,582 $1,581,425 $1,286,246 $160,935 $ -- $ 95,330,889 ----------- ---------- ---------- -------- ----------- ------------ ADD: Dividends -- Tenneco Inc. ................. 277,226 -- -- -- -- 631,059 Other corporate securities.... -- 33,275 7,576 -- -- 40,851 Registered investment companies................... -- -- -- -- -- 2,947,585 Interest........................ 10,094 1,079 865 18,718 -- 1,090,235 ----------- ---------- ---------- -------- ----------- ------------ 287,320 34,354 8,441 18,718 -- 4,709,730 Net appreciation (depreciation) in fair value of investments................... (1,280,761) 67,001 353,096 -- -- 7,372,200 ----------- ---------- ---------- -------- ----------- ------------ Net investment income (loss)................... (993,441) 101,355 361,537 18,718 -- 12,081,930 Contributions -- Employees..................... -- -- -- -- -- 16,208,702 Employers..................... 5,205,817 -- -- -- -- 6,968,084 Rollovers..................... -- -- -- -- -- 150,832 ----------- ---------- ---------- -------- ----------- ------------ 5,205,817 -- -- -- -- 23,327,618 Repayment of loan interest...... 118,068 -- -- -- -- 247,759 Transfer from other plans (Note 5)............................ -- -- -- -- 13,407,835 13,407,835 ----------- ---------- ---------- -------- ----------- ------------ Total additions........... 4,330,444 101,355 361,537 18,718 13,407,835 49,065,142 ----------- ---------- ---------- -------- ----------- ------------ DEDUCT: Withdrawals..................... 406,711 78,931 64,784 -- -- 6,359,481 Administrative expenses......... -- -- -- 95,379 -- 95,379 ----------- ---------- ---------- -------- ----------- ------------ Total deductions.......... 406,711 78,931 64,784 95,379 -- 6,454,860 OPTION TRANSFERS, net............ (1,095,345) (151,993) (113,494) 133,199 -- -- ----------- ---------- ---------- -------- ----------- ------------ NET ASSETS AVAILABLE FOR PLAN BENEFITS, end of year........... $10,126,970 $1,451,856 $1,469,505 $217,473 $13,407,835 $137,941,171 =========== ========== ========== ======== =========== ============
This exhibit is an integral part of the accompanying financial statements. 11 12 SCHEDULE I TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AS OF DECEMBER 31, 1998
SHARES OR CURRENT IDENTITY OF ISSUE DESCRIPTION OF ASSET FACE VALUE COST VALUE ----------------- -------------------- ---------- ---- ------- CORPORATE SECURITIES: Tenneco Inc.*................... Tenneco Inc. common stock 620,693 $ 26,017,531 $ 21,142,667 El Paso Energy Company.......... El Paso Energy common stock 41,029 1,084,191 1,431,440 Newport News Shipbuilding Inc........................... Newport News Shipbuilding Inc. common stock 43,215 831,549 1,445,023 ------------ ------------ Total corporate securities 27,933,271 24,019,130 ------------ ------------ COLLECTIVE TRUST FUNDS: BZW Barclays Global Investors... BZW Barclays Equity Index Fund 516,804 13,035,369 17,366,091 BZW Barclays Global Investors... BZW Barclays U.S. Debt Market Index Fund 341,318 4,368,083 4,813,406 Fidelity Investments Institutional Services Co..... Fidelity Managed Income Portfolio (1998 average yield 5.93%) 2,109,680 2,109,680 2,109,680 ------------ ------------ Total collective trust funds 19,513,132 24,289,177 ------------ ------------ REGISTERED INVESTMENT COMPANIES: Fidelity Investments Institutional Services Co..... Fidelity Balanced Fund 32 458 528 Fidelity Investments Institutional Services Co..... Fidelity Growth & Income Fund 15,785 603,496 723,555 Fidelity Investments Institutional Services Co..... Fidelity Growth Company Fund 550,497 26,536,098 28,848,110 Fidelity Investments Institutional Services Co..... Fidelity Intermediate Bond Fund 3,986 40,445 40,932 Fidelity Investments Institutional Services Co..... Fidelity International Growth & Income Fund 25,899 493,463 541,557 Fidelity Investments Institutional Services Co..... Fidelity Magellan Fund 22,635 2,025,286 2,734,812 Fidelity Investments Institutional Services Co..... Fidelity Puritan Fund 78,745 1,397,486 1,580,417 INVESCO Funds Group, Inc........ INVESCO Value Trust Total Return Fund 437,467 12,719,733 13,718,983 Putnam Management Company....... Putnam New Opportunities Fund 156,414 7,509,709 9,139,269 Franklin Templeton.............. Templeton Foreign Fund 118,785 1,214,484 996,608 ------------ ------------ Total registered investment companies 52,540,658 58,324,771 ------------ ------------ POOLED SEPARATE ACCOUNTS: Principal Life Insurance Company....................... Bond & Mortgage Account 4 1,802 1,801 Principal Life Insurance Company....................... Bond Emphasis Balanced Account 10,337 164,221 169,326 Principal Life Insurance Company....................... International Stock Account 6,244 216,425 209,681 Principal Life Insurance Company....................... Medium Company Blend Account 16,610 573,992 545,811 Principal Life Insurance Company....................... Medium Company Value Account 16,900 621,997 625,926 Principal Life Insurance Company....................... Money Market Account 14,485 522,945 535,538 Principal Life Insurance Company....................... Real Estate Account 6 1,800 1,814 Principal Life Insurance Company....................... Small Company Blend Account 8,588 313,631 284,559 Principal Life Insurance Company....................... Stock Emphasis Balance Account 9,696 184,359 190,473 Principal Life Insurance Company....................... Stock Index 500 Account 519 19,266 22,221 Principal Life Insurance Company....................... U.S. Stock Account 5 1,969 2,171 ------------ ------------ Total pooled separate accounts 2,622,407 2,589,321 ------------ ------------ GUARANTEED INVESTMENT CONTRACT: Principal Life Insurance Company....................... Guaranteed Interest Account (maturity December 31, 1999, interest 4.53%) 480,379 480,379 480,379 ------------ ------------ Total guaranteed investment contract 480,379 480,379 ------------ ------------ MONEY MARKET FUNDS: Bankers Trust Company*.......... Bankers Trust Pyramid Directed Account Cash Fund 1,097,290 1,097,290 1,097,290 NationsBank of Texas, N.A.*..... Nations Cash Reserves 21,633,410 21,633,410 21,633,410 ------------ ------------ Total money market funds 22,730,700 22,730,700 ------------ ------------ TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES*...................... Participant loans receivable (interest rates ranging from 6% to 10%) 5,170,173 5,170,173 ------------ ------------ Total assets held for investment purposes $128,368,313 $137,603,651 ============ ============
- ------------------------- * Indicated party in interest. 12 13 SCHEDULE II TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES SCHEDULE OF REPORTABLE TRANSACTIONS -- SERIES OF TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1998
COST COST PURCHASE IN-KIND SELLING OF ASSETS IN-KIND OF ASSETS IDENTITY OF PRICE EXCHANGES PRICE SOLD OR EXCHANGES EXCHANGED PARTY INVOLVED Description (A)(C) In(c) (B)(C) DISTRIBUTED OUT(C) OUT -------------- ----------- -------- --------- ------- ----------- --------- --------- Tenneco Inc. ........ Tenneco Inc. common stock $ 2,131,414 $5,322,930 $1,154,458 $ 1,362,108 $60,342 $59,492 BZW Barclays Global Investors.......... BZW Barclays Equity Index Fund 8,655,549 -- 2,618,680 2,267,387 -- -- Fidelity Investments Institutional Services Co. ...... Fidelity Growth Company Fund 6,191,626 -- 3,385,476 3,431,178 -- -- INVESCO Funds Group, Inc. .............. INVESCO Value Trust Total Return Fund 5,873,827 -- 2,117,188 2,003,754 -- -- Putnam Management Company............ Putnam New Opportunities Fund 4,115,160 -- 1,163,448 1,082,287 -- -- Bankers Trust Company............ Bankers Trust Pyramid Directed Account Cash Fund 42,614,702 -- 41,517,412 41,517,412 -- -- NationsBank of Texas, N.A. .............. Nations Cash Reserves 33,314,617 -- 30,031,288 30,031,288 -- -- NET IDENTITY OF GAIN PARTY INVOLVED (LOSS) -------------- ------ Tenneco Inc. ........ $(206,800) BZW Barclays Global Investors.......... 351,293 Fidelity Investments Institutional Services Co. ...... (45,702) INVESCO Funds Group, Inc. .............. 113,434 Putnam Management Company............ 81,161 Bankers Trust Company............ -- NationsBank of Texas, N.A. .............. --
- ------------------------- (a) Purchase price equals cost of asset and 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 and in-kind exchanges in/out. 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 for Hourly Employees assets held on January 1, 1998. 13 14 SCHEDULE III TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES SCHEDULE OF REPORTABLE TRANSACTIONS -- SINGLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1998
IDENTITY OF PURCHASE SELLING COST OF NET GAIN PARTY INVOLVED DESCRIPTION PRICE(A)(C) PRICE(B)(C) ASSETS (LOSS) -------------- ----------- ----------- ----------- ----------- -------- Bankers Trust Company Bankers Trust Pyramid Directed Account Cash Fund Purchase $19,503,316 $ -- $19,503,316 $ -- Bankers Trust Company Bankers Trust Pyramid Directed Account Cash Fund Sale -- 18,806,299 18,806,299 -- NationsBank of Texas, N.A. Nations Cash Reserves Purchase 19,000,000 -- 19,000,000 -- NationsBank of Texas, N.A. Nations Cash Reserves Sale -- 19,421,690 19,421,690 --
- --------------- (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 Tenneco Thrift Plan for Hourly Employees assets held on January 1, 1998. 14 15 SCHEDULE IV TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES SCHEDULE OF NONEXEMPT TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1998
RELATIONSHIP TO PLAN INTEREST IDENTITY OF EMPLOYER OR OTHER DESCRIPTION OF TRANSACTIONS, INCLUDING MATURITY DATE AMOUNT INCURRED PARTY INVOLVED PARTY IN INTEREST RATE OF INTEREST, COLLATERAL AND PAR OR MATURITY VALUE LOANED ON LOAN - -------------- -------------------- ------------------------------------------------------ ------ -------- Tenneco Inc. Employer Lending of monies from the Tenneco Thrift Plan for Hourly Employees to the Employer -- August 22, 1997 (payroll date), employee contributions of Filer City not remitted until April 30, 1998. Interest of 22% per annum........................................... $ 13,032(a) $1,807(a) Tenneco Inc. Employer Lending of monies from the Tenneco Thrift Plan for Hourly Employees to the Employer -- December 22, 1997 (payroll date), employee contributions of Filer City and Tomahawk locations not remitted until April 30, 1998. Interest of 19% per annum................. $ 53,297(a) $2,719(a) Tenneco Inc. Employer Lending of monies from the Tenneco Thrift Plan for Hourly Employees to the Employer -- June 26, 1998 (payroll date), employee contributions for eight locations of Tenneco Packaging not remitted until August 1, 1998. Interest of 26% per annum....... $119,310(b) $1,020(b)
- ------------------------- (a) The employee contributions and related earnings were paid to the Tenneco Thrift Plan for Hourly Employees on April 30, 1998. (b) The employee contributions and related earnings were paid to the Tenneco Thrift Plan for Hourly Employees on August 1, 1998. 15 16 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 28, 1999 By: /s/ DANA G. MEAD ------------------------ Dana G. Mead Chairman of the Tenneco Benefits Committee 17 INDEX TO EXHIBIT
EXHIBIT NUMBER - ------- 23 --Consent of Independent Public Accountants
EX-23 2 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 15, 1999, included in this Annual Report on Form 11-K for the year ended December 31, 1998, into the previously filed Form S-8 Registration Statements of the Tenneco Thrift Plan For Hourly Employees (File Nos. 333-17487, 333-27281, 333-27279, 333-30933, 333-41537, 333-48777 and 333-76261). ARTHUR ANDERSEN LLP Houston, Texas June 28, 1999 -----END PRIVACY-ENHANCED MESSAGE-----