<PAGE> 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, 1997
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
================================================================================
<PAGE> 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, 1997
and 1996, and the related statements of changes in net assets available for plan
benefits for the year ended December 31, 1997. 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 For Hourly Employees as of December 31, 1997 and 1996, and the
changes in net assets available for plan benefits for the year ended December
31, 1997, 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, 1997, included as Schedule I,
reportable transactions -- series of transactions for the year ended December
31, 1997, included as Schedule II, reportable transactions -- single
transactions for the year ended December 31, 1997, included as Schedule III, and
nonexempt transactions for the year ended December 31, 1997, 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, 1998
2
<PAGE> 3
TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
1997 1996
---- ----
<S> <C> <C>
INVESTMENTS:
Corporate securities --
Tenneco Inc. common stock.............................. $17,570,588 $ 6,192,594
El Paso Natural Gas Company common stock............... 1,551,113 609,841
Newport News Shipbuilding Inc. common stock............ 1,259,181 389,550
Amoco Corporation common stock......................... 126,581 --
----------- -----------
20,507,463 7,191,985
Collective trust funds --
BZW Barclays Equity Index Fund......................... 7,929,132 3,181,878
BZW Barclays U.S. Debt Market Index Fund............... 3,098,425 1,783,655
Norwest Advantage Growth Balance Fund.................. 1,121,591 --
Norwest Advantage Index Fund........................... 1,046,543 --
----------- -----------
13,195,691 4,965,533
Registered investment companies --
Fidelity Growth Company Fund........................... 20,635,599 2,588,137
INVESCO Value Trust Total Return Fund.................. 9,010,952 283,529
Putnam New Opportunities Fund.......................... 4,925,755 2,247,853
Templeton Foreign Fund................................. 827,805 264,170
Fidelity Managed Income Fund........................... 1,220,770 --
Fidelity Magellan Fund................................. 1,592,305 --
Fidelity Equity Income Fund............................ 1,561,891 --
Fidelity OTC Portfolio................................. 193,088 --
Fidelity Balanced Fund................................. 233,621 --
Fidelity Global Balanced Fund.......................... 64,401 --
----------- -----------
40,265,687 5,383,689
Money market funds --
Nations Cash Reserves.................................. 18,350,081 2,335,726
Other.................................................. 193,658 --
----------- -----------
18,543,739 2,335,726
Participant loans receivable.............................. 2,721,460 566,866
----------- -----------
Total investments.................................... 95,234,040 20,443,799
RECEIVABLES:
Employees' contributions.................................. 38,161 241,875
Employers' contributions.................................. 19,540 117,445
Accrued interest.......................................... 96,028 13,189
CASH........................................................ 24 --
OTHER....................................................... (56,904) (7,777)
----------- -----------
NET ASSETS AVAILABLE FOR PLAN BENEFITS...................... $95,330,889 $20,808,531
=========== ===========
</TABLE>
The accompanying notes to financial statements are an integral part of these
financial statements.
3
<PAGE> 4
TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<S> <C>
NET ASSETS AVAILABLE FOR PLAN BENEFITS, beginning of
period.................................................... $20,808,531
-----------
ADD:
Dividends --
Tenneco Inc............................................ 286,998
Other corporate securities............................. 25,886
Registered investment companies........................ 2,355,653
Interest.................................................. 377,948
-----------
3,046,485
Net depreciation in fair value of investments............. (1,786,376)
-----------
Net investment income................................ 1,260,109
Contributions --
Employees.............................................. 10,668,688
Employers.............................................. 5,222,441
Rollovers.............................................. 344,760
-----------
16,235,889
Repayment of loan interest................................ 102,092
Transfers from other plans (Note 4)....................... 59,439,155
-----------
Total additions...................................... 77,037,245
-----------
DEDUCT:
Withdrawals............................................... 2,514,887
-----------
Total deductions..................................... 2,514,887
-----------
NET ASSETS AVAILABLE FOR PLAN BENEFITS, end of period....... $95,330,889
===========
</TABLE>
The accompanying notes to financial statements are an integral part of this
financial statement.
4
<PAGE> 5
TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 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 $9,500 for 1997. 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. 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.
Certain covered groups may direct the Employers' matching contributions to the
investment options listed in Note 3.
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 (certain covered groups may
also withdraw Employer matching contributions), 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
<PAGE> 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. Loans bear a rate commensurate with
prevailing rates. The current interest rate for new loans was 7.75 percent as of
December 31, 1997 and 1996. 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.
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. Participant loans receivable are reported at cost which
approximates fair value.
EARNINGS
Individual participants' accounts are credited daily with investment earnings
and losses for each investment option in the ratio that the participant's
account balance bears to all account balances.
EXPENSES
Substantially all administrative expenses are currently paid by the Employers.
In the event expenses are not paid by the Employers, such expenses would be 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 1996 amounts have been reclassified to conform with the 1997
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
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.
6
<PAGE> 7
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 shareholders, and El Paso Natural Gas Company common stock,
received through a 1996 merger transaction, 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. TRANSFERS FROM OTHER PLANS:
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 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 Norwest, the trustee of the Chippewa Falls Plan. These assets
are recorded in Exhibits 1 and 2 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 Fidelity
Investments Institutional Services Company, the trustee of the Clevite Plan.
These assets are recorded in Exhibits 1 and 2 as Merger Assets.
Effective August 1, 1997, the hourly participants of the Tenneco Packaging Inc.
401(k) Savings Plan (the Packaging Plan) became eligible to participate in the
Hourly Thrift Plan, and their account balances maintained under the Packaging
Plan were merged into the Hourly Thrift Plan. In conjunction with the merger,
the Hourly Thrift Plan received approximately $51,900,000 from Dreyfus Trust
Company, the trustee of the Packaging Plan.
5. 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 is qualified and the related
trust is tax-exempt.
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.
6. 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.
7
<PAGE> 8
EXHIBIT 1
TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1997
<TABLE>
<CAPTION>
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
------------ ------------ ------------ -------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENTS:
Corporate securities --
Tenneco Inc. common stock............. $10,361,095 $ -- $ -- $ -- $ -- $ --
El Paso Natural Gas Company common
stock................................ -- -- -- -- -- --
Newport News Shipbuilding Inc. common
stock................................ -- -- -- -- -- --
Amoco Corporation common stock........ -- -- -- -- -- --
----------- ----------- ---------- ----------- ----------- ----------
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 -- -- --
Norwest Advantage Growth Balance
Fund................................. -- -- -- -- -- --
Norwest Advantage Index Fund.......... -- -- -- -- -- --
----------- ----------- ---------- ----------- ----------- ----------
-- 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................................. -- -- -- -- -- --
Fidelity Managed Income Fund.......... -- -- -- -- -- --
Fidelity Magellan Fund................ -- -- -- -- -- --
Fidelity Equity Income Fund........... -- -- -- -- -- --
Fidelity OTC Portfolio................ -- -- -- -- -- --
Fidelity Balanced Fund................ -- -- -- -- -- --
Fidelity Global Balanced Fund......... -- -- -- -- -- --
----------- ----------- ---------- ----------- ----------- ----------
-- -- -- 20,635,599 9,010,952 4,925,755
Money market funds --
Nations Cash Reserves................. 240,872 -- -- -- -- --
Other................................. -- -- -- -- -- --
----------- ----------- ---------- ----------- ----------- ----------
240,872 -- -- -- -- --
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........................ 1,498 113 7 60 2,323 234
CASH..................................... -- 15 9 -- -- --
OPTION TRANSFERS RECEIVABLE (PAYABLE).... 92,908 2,613,287 (291) (6,566) 2,916,525 194,074
OTHER.................................... -- -- -- -- -- --
----------- ----------- ---------- ----------- ----------- ----------
NET ASSETS AVAILABLE FOR PLAN BENEFITS... $10,709,385 $10,547,304 $3,098,731 $20,632,892 $11,930,996 $5,127,818
=========== =========== ========== =========== =========== ==========
<CAPTION>
PARTICIPANT-DIRECTED INVESTMENTS
-------------------------------------
TEMPLETON MONEY
FOREIGN MARKET PARTICIPANT
FUND FUND LOANS
--------- ------ -----------
<S> <C> <C> <C>
INVESTMENTS:
Corporate securities --
Tenneco Inc. common stock............. $ -- $ -- $ --
El Paso Natural Gas Company common
stock................................ -- -- --
Newport News Shipbuilding Inc. common
stock................................ -- -- --
Amoco Corporation common stock........ -- -- --
-------- ----------- ----------
-- -- --
Collective trust funds --
BZW Barclays Equity Index Fund........ -- -- --
BZW Barclays U.S. Debt Market Index
Fund................................. -- -- --
Norwest Advantage Growth Balance
Fund................................. -- -- --
Norwest Advantage Index Fund.......... -- -- --
-------- ----------- ----------
-- -- --
Registered investment companies --
Fidelity Growth Company Fund.......... -- -- --
INVESCO Value Trust Total Return
Fund................................. -- -- --
Putnam New Opportunities Fund......... -- -- --
Templeton Foreign Fund................ 827,805 -- --
Other................................. -- -- --
Fidelity Managed Income Fund.......... -- -- --
Fidelity Magellan Fund................ -- -- --
Fidelity Equity Income Fund........... -- -- --
Fidelity OTC Portfolio................ -- -- --
Fidelity Balanced Fund................ -- -- --
Fidelity Global Balanced Fund......... -- -- --
-------- ----------- ----------
827,805 -- --
Money market funds --
Nations Cash Reserves................. -- 17,750,920 --
Other................................. -- -- --
-------- ----------- ----------
-- 17,750,920 --
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........................ 33 81,291 --
CASH..................................... -- -- --
OPTION TRANSFERS RECEIVABLE (PAYABLE).... 66,262 1,510,462 157,467
OTHER.................................... -- -- --
-------- ----------- ----------
NET ASSETS AVAILABLE FOR PLAN BENEFITS... $895,272 $19,348,562 $2,712,741
======== =========== ==========
<CAPTION>
NONPARTICIPANT-DIRECTED INVESTMENTS
------------------------------------------------------------------
EL PASO
NATURAL GAS NEWPORT NEWS
TENNECO INC. COMPANY SHIPBUILDING
COMMON COMMON INC. CLEARING MERGER
STOCK STOCK COMMON STOCK ACCOUNT ASSETS TOTAL
------------ ----------- ------------ -------- ------ -----
<S> <C> <C> <C> <C> <C> <C>
INVESTMENTS:
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
Amoco Corporation common stock........ -- -- -- -- 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
Norwest Advantage Growth Balance
Fund................................. -- -- -- -- 1,021,591 1,021,591
Norwest Advantage Index Fund.......... -- -- -- -- 1,046,543 1,046,543
---------- ---------- ---------- -------- ----------- -----------
-- -- -- -- 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
Fidelity Managed Income Fund.......... -- -- -- -- 1,220,770 1,220,770
Fidelity Magellan Fund................ -- -- -- -- 1,592,305 1,592,305
Fidelity Equity Income Fund........... -- -- -- -- 1,561,391 1,561,391
Fidelity OTC Portfolio................ -- -- -- -- 193,088 193,088
Fidelity Balanced Fund................ -- -- -- -- 233,621 233,621
Fidelity Global Balanced Fund......... -- -- -- -- 64,401 64,401
---------- ---------- ---------- -------- ----------- -----------
-- -- -- -- 4,865,576 40,265,687
Money market funds --
Nations Cash Reserves................. 165,369 30,644 27,363 134,913 -- 18,350,081
Other................................. -- -- -- -- 193,658 193,658
---------- ---------- ---------- -------- ----------- -----------
165,369 30,644 27,363 134,913 193,658 18,543,739
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........................ 1,008 8,724 78 659 -- 96,028
CASH..................................... -- -- -- -- -- 24
OPTION TRANSFERS RECEIVABLE (PAYABLE).... (645) (9,056) (376) 25,363 (7,559,414) --
OTHER.................................... -- -- -- -- (56,904) (56,904)
---------- ---------- ---------- -------- ----------- -----------
NET ASSETS AVAILABLE FOR PLAN BENEFITS... $7,298,582 $1,581,425 $1,286,246 $160,935 $ -- $95,330,889
========== ========== ========== ======== =========== ===========
</TABLE>
This exhibit is an integral part of the accompanying financial statements
8
<PAGE> 9
EXHIBIT 1
CONTINUED
TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1996
<TABLE>
<CAPTION>
PARTICIPANT-DIRECTED INVESTMENTS
--------------------------------------------------------------------------------------
BZW BARCLAYS FIDELITY INVESCO
TENNECO INC. BZW BARCLAYS U.S. DEBT GROWTH VALUE TRUST PUTNAM NEW
COMMON EQUITY INDEX MARKET INDEX COMPANY TOTAL RETURN OPPORTUNITIES
STOCK FUND FUND FUND FUND FUND
------------ ------------ ------------ -------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENTS:
Corporate securities--
Tenneco Inc. common stock........... $1,689,642 $ -- $ -- $ -- $ -- $ --
El Paso Natural Gas Company common
stock............................. -- -- -- -- -- --
Newport News Shipbuilding Inc.
common stock...................... -- -- -- -- -- --
---------- ---------- ---------- ---------- -------- ----------
1,689,642 -- -- -- -- --
Collective trust funds--
BZW Barclays Equity Index Fund...... -- 3,181,878 -- -- -- --
BZW Barclays U.S. Debt Market Index
Fund.............................. -- -- 1,783,655 -- -- --
---------- ---------- ---------- ---------- -------- ----------
-- 3,181,878 1,783,655 -- -- --
Registered investment companies--
Fidelity Growth Company Fund........ -- -- -- 2,588,137 -- --
INVESCO Value Trust Total Return
Fund.............................. -- -- -- -- 283,529 --
Putnam New Opportunities Fund....... -- -- -- -- -- 2,247,853
Templeton Foreign Fund.............. -- -- -- -- -- --
---------- ---------- ---------- ---------- -------- ----------
-- -- -- 2,588,137 283,529 2,247,853
Nations Cash Reserves................. 46,899 -- -- -- -- --
Participant loans receivable.......... -- -- -- -- -- --
---------- ---------- ---------- ---------- -------- ----------
Total investments............... 1,736,541 3,181,878 1,783,655 2,588,137 283,529 2,247,853
RECEIVABLES:
Employees' contributions.............. 33,889 45,800 27,987 45,506 7,900 44,673
Employers' contributions.............. -- -- -- -- -- --
Accrued interest...................... 113 -- -- -- 1,077 --
OPTION TRANSFERS RECEIVABLE
(PAYABLE)............................. 5,145 1,251 306 955 193 1,868
OTHER.................................. -- -- -- -- -- --
---------- ---------- ---------- ---------- -------- ----------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS.............................. $1,775,688 $3,228,929 $1,811,948 $2,634,598 $292,699 $2,294,394
========== ========== ========== ========== ======== ==========
<CAPTION>
PARTICIPANT-DIRECTED INVESTMENTS
------------------------------------
TEMPLETON MONEY
FOREIGN MARKET PARTICIPANT
FUND FUND LOANS
--------- ------ -----------
<S> <C> <C> <C>
INVESTMENTS:
Corporate securities--
Tenneco Inc. common stock........... $ -- $ -- $ --
El Paso Natural Gas Company common
stock............................. -- -- --
Newport News Shipbuilding Inc.
common stock...................... -- -- --
-------- ---------- --------
-- -- --
Collective trust funds--
BZW Barclays Equity Index Fund...... -- -- --
BZW Barclays U.S. Debt Market Index
Fund.............................. -- -- --
-------- ---------- --------
-- -- --
Registered investment companies--
Fidelity Growth Company Fund........ -- -- --
INVESCO Value Trust Total Return
Fund.............................. -- -- --
Putnam New Opportunities Fund....... -- -- --
Templeton Foreign Fund.............. 264,170 -- --
-------- ---------- --------
264,170 -- --
Nations Cash Reserves................. -- 2,092,529 --
Participant loans receivable.......... -- -- 566,866
-------- ---------- --------
Total investments............... 264,170 2,092,529 566,866
RECEIVABLES:
Employees' contributions.............. 6,165 29,955 --
Employers' contributions.............. -- -- --
Accrued interest...................... -- 8,346 1,820
OPTION TRANSFERS RECEIVABLE
(PAYABLE)............................. 203 1,785 (11,706)
OTHER.................................. -- -- --
-------- ---------- --------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS.............................. $270,538 $2,132,615 $556,980
======== ========== ========
<CAPTION>
NONPARTICIPANT-DIRECTED INVESTMENTS
-----------------------------------------------------
EL PASO NEWPORT NEWS
TENNECO INC. NATURAL GAS SHIPBUILDING
COMMON COMPANY INC. CLEARING
STOCK COMMON STOCK COMMON STOCK ACCOUNT TOTAL
------------ ------------ ------------ -------- -----
<S> <C> <C> <C> <C> <C>
INVESTMENTS:
Corporate securities--
Tenneco Inc. common stock........... $4,502,952 $ -- $ -- $ -- $ 6,192,594
El Paso Natural Gas Company common
stock............................. -- 609,841 -- -- 609,841
Newport News Shipbuilding Inc.
common stock...................... -- -- 389,550 -- 389,550
---------- -------- -------- ------- -----------
4,502,952 609,841 389,550 -- 7,191,985
Collective trust funds--
BZW Barclays Equity Index Fund...... -- -- -- -- 3,181,878
BZW Barclays U.S. Debt Market Index
Fund.............................. -- -- -- -- 1,783,655
---------- -------- -------- ------- -----------
-- -- -- -- 4,965,533
Registered investment companies--
Fidelity Growth Company Fund........ -- -- -- -- 2,588,137
INVESCO Value Trust Total Return
Fund.............................. -- -- -- -- 283,529
Putnam New Opportunities Fund....... -- -- -- -- 2,247,853
Templeton Foreign Fund.............. -- -- -- -- 264,170
---------- -------- -------- ------- -----------
-- -- -- -- 5,383,689
Nations Cash Reserves................. 124,986 15,864 11,992 43,456 2,335,726
Participant loans receivable.......... -- -- -- -- 566,866
---------- -------- -------- ------- -----------
Total investments............... 4,627,938 625,705 401,542 43,456 20,443,799
RECEIVABLES:
Employees' contributions.............. -- -- -- -- 241,875
Employers' contributions.............. 117,445 -- -- -- 117,445
Accrued interest...................... 302 38 29 1,464 13,189
OPTION TRANSFERS RECEIVABLE
(PAYABLE)............................. -- -- -- -- --
OTHER.................................. -- -- -- (7,777) (7,777)
---------- -------- -------- ------- -----------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS.............................. $4,745,685 $625,743 $401,571 $37,143 $20,808,531
========== ======== ======== ======= ===========
</TABLE>
This exhibit is an integral part of the accompanying financial statements.
9
<PAGE> 10
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, 1997
<TABLE>
<CAPTION>
PARTICIPANT-DIRECTED INVESTMENTS
---------------------------------------------------------------------------------------------------
BZW BARCLAYS FIDELITY INVESCO PUTNAM
TENNECO INC. BZW BARCLAYS U.S. DEBT GROWTH VALUE TRUST NEW TEMPLETON
COMMON EQUITY INDEX MARKET INDEX COMPANY TOTAL RETURN OPPORTUNITIES FOREIGN
STOCK FUND FUND FUND FUND FUND FUND
------------ ------------ ------------ -------- ------------ ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, BEGINNING OF
PERIOD...................... $ 1,775,688 $ 3,228,929 $1,811,948 $ 2,634,598 $ 292,699 $2,294,394 $270,538
----------- ----------- ---------- ----------- ----------- ---------- --------
ADD:
Dividends --
Tenneco Inc............... 116,859 -- -- -- -- -- --
Other corporate
securities.............. -- -- -- -- -- -- --
Registered investment
companies............... -- -- -- 1,942,810 224,290 105,450 83,103
Interest.................... 5,914 -- -- -- -- -- --
----------- ----------- ---------- ----------- ----------- ---------- --------
122,773 -- -- 1,942,810 224,290 105,450 83,103
Net appreciation
(depreciation) in fair
value of investments...... (1,995,210) 1,323,716 227,591 (1,716,667) 159,814 559,974 (95,552)
----------- ----------- ---------- ----------- ----------- ---------- --------
Net investment income
(loss)............... (1,872,437) 1,323,716 227,591 226,143 384,104 665,424 (12,449)
Contributions --
Employees................. 1,269,183 1,953,805 1,180,607 2,332,276 539,209 1,512,800 224,109
Employers................. 110,914 10,858 426 197,122 91,699 7,266 3,279
Rollovers................. 61,284 50,299 7,192 90,183 11,569 53,092 716
----------- ----------- ---------- ----------- ----------- ---------- --------
1,441,381 2,014,962 1,188,225 2,619,581 642,477 1,573,158 228,104
Repayment of loan
interest.................. 10,507 11,064 3,954 10,708 2,168 10,902 1,220
Transfer from other plans
(Note 4).................. 9,101,485 -- -- 17,344,144 7,362,607 -- --
----------- ----------- ---------- ----------- ----------- ---------- --------
Total additions....... 8,680,936 3,349,742 1,419,770 20,200,576 8,391,356 2,249,484 216,875
----------- ----------- ---------- ----------- ----------- ---------- --------
DEDUCT:
Withdrawals................. 333,519 234,423 129,984 331,175 143,824 184,676 42,813
----------- ----------- ---------- ----------- ----------- ---------- --------
Total deductions...... 333,519 234,423 129,984 331,175 143,824 184,676 42,813
----------- ----------- ---------- ----------- ----------- ---------- --------
OPTION TRANSFERS, net........ 586,280 4,203,056 (3,003) (1,871,107) 3,390,765 768,616 450,672
----------- ----------- ---------- ----------- ----------- ---------- --------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, end of period..... $10,709,385 $10,547,304 $3,098,731 $20,632,892 $11,930,996 $5,127,818 $895,272
=========== =========== ========== =========== =========== ========== ========
<CAPTION>
PARTICIPANT-DIRECTED INVESTMENTS
-----------------------------
MONEY
MARKET PARTICIPANT
FUND LOANS
------ -----------
<S> <C> <C>
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, BEGINNING OF
PERIOD...................... $ 2,132,615 $ 556,980
----------- ----------
ADD:
Dividends --
Tenneco Inc............... -- --
Other corporate
securities.............. -- --
Registered investment
companies............... -- --
Interest.................... 348,926 --
----------- ----------
348,926 --
Net appreciation
(depreciation) in fair
value of investments...... -- --
----------- ----------
Net investment income
(loss)............... 348,926 --
Contributions --
Employees................. 1,656,699 --
Employers................. 196,524 --
Rollovers................. 70,425 --
----------- ----------
1,923,648 --
Repayment of loan
interest.................. 7,216 --
Transfer from other plans
(Note 4).................. 16,397,687 104,765
----------- ----------
Total additions....... 18,677,477 104,765
----------- ----------
DEDUCT:
Withdrawals................. 643,794 75,877
----------- ----------
Total deductions...... 643,794 75,877
----------- ----------
OPTION TRANSFERS, net........ (817,736) 2,126,873
----------- ----------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, end of period..... $19,348,562 $2,712,741
=========== ==========
<CAPTION>
NONPARTICIPANT-DIRECTED INVESTMENTS
------------------------------------------------------------------
EL PASO
NATURAL GAS NEWPORT NEWS
TENNECO INC. COMPANY SHIPBUILDING
COMMON COMMON INC. CLEARING MERGER
STOCK STOCK COMMON STOCK ACCOUNT ASSETS TOTAL
------------ ----------- ------------ -------- ------ -----
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, BEGINNING OF
PERIOD...................... $ 4,745,685 $ 625,743 $ 401,571 $ 37,143 $ -- $20,808,531
----------- ---------- ---------- -------- ----------- -----------
ADD:
Dividends --
Tenneco Inc............... 170,139 -- -- -- -- 286,998
Other corporate
securities.............. -- 20,871 5,015 -- -- 25,886
Registered investment
companies............... -- -- -- -- -- 2,355,653
Interest.................... 4,031 777 499 17,801 -- 377,948
----------- ---------- ---------- -------- ----------- -----------
174,170 21,648 5,514 17,801 -- 3,046,485
Net appreciation
(depreciation) in fair
value of investments...... (831,673) 259,167 322,464 -- -- (1,786,376)
----------- ---------- ---------- -------- ----------- -----------
Net investment income
(loss)............... (657,503) 280,815 327,978 17,801 -- 1,260,109
Contributions --
Employees................. -- -- -- -- -- 10,668,688
Employers................. 4,604,353 -- -- -- -- 5,222,441
Rollovers................. -- -- -- -- -- 344,760
----------- ---------- ---------- -------- ----------- -----------
4,604,353 -- -- -- -- 16,235,889
Repayment of loan
interest.................. 44,353 -- -- -- -- 102,092
Transfer from other plans
(Note 4).................. -- 877,055 691,998 -- 7,559,414 59,439,155
----------- ---------- ---------- -------- ----------- -----------
Total additions....... 3,991,203 1,157,870 1,019,976 17,801 7,559,414 77,037,245
----------- ---------- ---------- -------- ----------- -----------
DEDUCT:
Withdrawals................. 288,378 64,370 42,054 -- -- 2,514,887
----------- ---------- ---------- -------- ----------- -----------
Total deductions...... 288,378 64,370 42,054 -- -- 2,514,887
----------- ---------- ---------- -------- ----------- -----------
OPTION TRANSFERS, net........ (1,149,928) (137,818) (93,247) 105,991 (7,559,414) --
----------- ---------- ---------- -------- ----------- -----------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, end of period..... $ 7,298,582 $1,581,425 $1,286,246 $160,935 $ -- $95,330,889
=========== ========== ========== ======== =========== ===========
</TABLE>
This exhibit is an integral part of the accompanying financial statements.
10
<PAGE> 11
SCHEDULE I
TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1997
<TABLE>
<CAPTION>
SHARES OR CURRENT
IDENTITY OF ISSUE DESCRIPTION OF ASSET FACE VALUE COST VALUE
----------------- -------------------- ---------- ---- -------
<S> <C> <C> <C> <C>
CORPORATE SECURITIES:
Tenneco Inc.*................... Tenneco Inc. common stock 444,825 $19,984,787 $17,570,588
El Paso Natural Gas Company..... El Paso Natural Gas Company common
stock 23,325 1,233,717 1,551,113
Newport News Shipbuilding
Inc........................... Newport News Shipbuilding Inc.
common stock 49,500 951,421 1,259,181
Amoco Corporation............... Amoco Corporation common stock 1,487 94,333 126,581
----------- -----------
Total corporate securities 22,264,258 20,507,463
----------- -----------
COLLECTIVE TRUST FUNDS:
BZW Barclays Global Investors... BZW Barclays Equity Index Fund 303,297 6,647,207 7,929,132
BZW Barclays Global Investors... BZW Barclays U.S. Debt Market Index
Fund 238,684 2,896,012 3,098,425
Norwest......................... Norwest Advantage Growth Balanced
Fund 43,591 972,942 1,121,591
Norwest......................... Norwest Advantage Index Fund 25,507 822,898 1,046,543
----------- -----------
Total collective trust funds 11,339,059 13,195,691
----------- -----------
REGISTERED INVESTMENT COMPANIES:
Fidelity Investments
Institutional Services Co..... Fidelity Growth Company Fund 476,353 22,502,952 20,635,599
Fidelity Investments
Institutional Services Co..... Fidelity Managed Income Fund 1,220,770 1,220,770 1,220,770
Fidelity Investments
Institutional Services Co..... Fidelity Magellan Fund 16,714 1,331,692 1,592,305
Fidelity Investments
Institutional Services Co..... Fidelity Equity Income Fund 29,792 1,159,639 1,561,391
Fidelity Investments
Institutional Services Co..... Fidelity OTC Portfolio 5,772 190,779 193,088
Fidelity Investments
Institutional Services Co..... Fidelity Balanced Fund 15,299 217,115 233,621
Fidelity Investments
Institutional Services Co..... Fidelity Global Balanced Fund 4,402 58,375 64,401
INVESCO Funds Group, Inc........ INVESCO Value Trust Total Return
Fund 309,761 8,849,660 9,010,952
Putnam Management Company....... Putnam New Opportunities Fund 101,249 4,476,836 4,925,755
Franklin Templeton.............. Templeton Foreign Fund 83,196 912,542 827,805
----------- -----------
Total registered investment
companies 40,920,360 40,265,687
----------- -----------
MONEY MARKET FUNDS:
NationsBank of Texas, N.A....... Nations Cash Reserves 18,350,081 18,350,081 18,350,081
Norwest......................... NWCTF Short-Term Investment Fund 193,658 193,658 193,658
----------- -----------
Total money market funds 18,543,739 18,543,739
----------- -----------
Tenneco Thrift Plan for Hourly
Employees*.................... Participant loans receivable
(interest rates ranging from 6% to
12%) 2,721,460 2,721,460 2,721,460
----------- -----------
Total assets held for investment
purposes $95,788,876 $95,234,040
=========== ===========
</TABLE>
- -------------------------
*Indicated party in interest.
11
<PAGE> 12
SCHEDULE II
TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES
SCHEDULE OF REPORTABLE TRANSACTIONS -- SERIES OF TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
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) (a)(c) DISTRIBUTED OUT(c) OUT
-------------- ----------- -------- --------- ------- ----------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Tenneco Inc............ Tenneco Inc. common
stock $ 1,697,486 $14,099,315 $ 1,573,116 $ 1,468,737 $18,808 $18,236
BZW Barclays Global
Investors............ BZW Barclays Equity
Index Fund 3,804,272 -- 380,734 332,881 -- --
BZW Barclays Global
Investors............ BZW Barclays U.S. Debt
Market Index Fund 1,470,857 -- 383,678 368,094 -- --
Fidelity Investments
Institutional
Services Co.......... Fidelity Growth Company
Fund 21,524,259 -- 1,760,130 1,728,234 -- --
INVESCO Funds Group,
Inc.................. INVESCO Value Trust
Total Return Fund 8,843,662 -- 276,053 269,897 -- --
Putnam Management
Company.............. Putnam New
Opportunities Fund 2,537,179 -- 419,251 389,390 -- --
NationsBank of Texas,
N.A.................. Nations Cash Reserves 73,561,331 -- 57,546,976 57,546,976 -- --
<CAPTION>
NET
IDENTITY OF GAIN
PARTY INVOLVED (LOSS)
-------------- ------
<S> <C>
Tenneco Inc............
$104,951
BZW Barclays Global
Investors............
47,853
BZW Barclays Global
Investors............
15,584
Fidelity Investments
Institutional
Services Co..........
31,896
INVESCO Funds Group,
Inc..................
6,156
Putnam Management
Company..............
29,861
NationsBank of Texas,
N.A.................. --
</TABLE>
- -------------------------
(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 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, 1997. The Trustee initiates and
consummates all investment transactions at the direction of the
participants.
12
<PAGE> 13
SCHEDULE III
TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES
SCHEDULE OF REPORTABLE TRANSACTIONS -- SINGLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
COST
IN-KIND OF ASSETS NET
IDENTITY OF PURCHASE EXCHANGES SELLING SOLD OR GAIN
PARTY INVOLVED DESCRIPTION PRICE(a)(c) IN(c) PRICE(b)(c) DISTRIBUTED (LOSS)
-------------- ----------- ----------- --------- ----------- ----------- ------
<S> <C> <C> <C> <C> <C> <C> <C>
Tenneco Inc. Tenneco Inc. common stock In-kind $ -- $8,825,002 $ -- $ -- $--
Fidelity Investments Fidelity Growth Company
Institutional Services Fund
Co. Purchase 17,340,559 -- -- -- --
Fidelity Investments Fidelity Growth Company
Institutional Services Fund
Co. Purchase 1,412,771 -- -- -- --
INVESCO Funds Group, Inc. INVESCO Value Trust Total Purchase 7,363,285 -- -- -- --
Return Fund
NationsBank of Texas, N.A. Nations Cash Reserves Purchase 46,083,551 -- -- -- --
NationsBank of Texas, N.A. Nations Cash Reserves Purchase 16,370,899 -- -- -- --
NationsBank of Texas, N.A. Nations Cash Reserves Sale -- -- 46,243,330 46,243,330 --
</TABLE>
- -------------------------
(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 and in-kind exchanges in.
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, 1997. The Trustee initiates and consummates all
investment transactions at the direction of the participants.
13
<PAGE> 14
SCHEDULE IV
TENNECO THRIFT PLAN FOR HOURLY EMPLOYEES
SCHEDULE OF NONEXEMPT TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
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
- -------------- -------------------- ------------------------------------------------------ ------ --------
<S> <C> <C> <C> <C>
Tenneco Inc. Employers Lending of monies from the Hourly Thrift Plan to the
Employers -- September 29, 1996 (payroll date),
employee contributions of four divisions of Tenneco
Automotive not remitted until April 17, 1997. Interest
at 17.46% per annum............................ $50,158(a) $2,639(a)
Tenneco Inc. Employers Lending of monies from the Hourly Thrift Plan to the
Employers -- August 22, 1997 (payroll date), employee
contributions of Filer City not remitted until April
30, 1998. Interest at 22% per annum............ 13,032(b) 1,037(b)
</TABLE>
(a) The employee contributions and related earnings were paid to the Hourly
Thrift Plan on April 17, 1997.
(b) The employee contributions and related earnings were paid to the Hourly
Thrift Plan on April 30, 1998. Interest reflected on schedule represents
1997 interest.
14
<PAGE> 15
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
<TABLE>
<S> <C>
Date: June 26, 1998 By: /s/ DANA G. MEAD
---------------------------------------------
Dana G. Mead
Chairman of the Tenneco
Benefits Committee
</TABLE>
<PAGE> 16
INDEX TO EXHIBIT
<TABLE>
<CAPTION>
EXHIBIT
NUMBER
- -------
<S> <C>
23 --Consent of Independent Public Accountants
</TABLE>
<PAGE> 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, 1998, included in this Annual Report on
Form 11-K for the year ended December 31, 1997, 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 and 333-48777).
ARTHUR ANDERSEN LLP
Houston, Texas
June 26, 1998
