<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, 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
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 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 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, and reportable transactions -- single
transactions for the year ended December 31, 1998, included as Schedule III, are
presented for purposes of additional analysis and are not a required part of the
basic financial statements but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. The supplemental schedules
have been subjected to the auditing procedures applied in the audits of the
basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements taken as a
whole.
ARTHUR ANDERSEN LLP
Houston, Texas
June 15, 1999
2
<PAGE> 3
TENNECO THRIFT PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
AS OF DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
1998 1997
------------ ------------
<S> <C> <C>
ASSETS:
Investments, at market value --
Corporate securities --
Tenneco Inc. common stock............................ $119,871,236 $114,659,139
El Paso Energy (formerly, El Paso Natural Gas
Company) common stock............................. 11,122,649 12,370,862
Newport News Shipbuilding Inc. common stock.......... 10,652,879 9,793,554
------------ ------------
141,646,764 136,823,555
Collective trust funds --
BZW Barclays Equity Index Fund....................... 56,027,686 44,326,926
BZW Barclays U.S. Debt Market Index Fund............. 9,125,071 6,277,275
Other................................................ 3,449,424 --
------------ ------------
68,602,181 50,604,201
Registered investment companies --
Fidelity Growth Company Fund......................... 60,885,776 51,842,749
INVESCO Value Trust Total Return Fund................ 15,661,215 12,086,577
Putnam New Opportunities Fund........................ 30,317,365 23,249,618
Templeton Foreign Fund............................... 6,554,164 8,060,909
Other................................................ 9,191,903 --
------------ ------------
122,610,423 95,239,853
U.S. Treasury notes.................................... -- 6,010,320
BASIC Agreement on U.S. Treasury notes................. -- (8,557)
Pooled separate accounts............................... 3,703,077 --
Guaranteed investment contracts........................ 687,003 221,242
Bankers Trust Pyramid Directed Account Cash Fund....... 4,473,267 --
Nations Cash Reserves.................................. 93,101,850 96,295,832
Participant loans receivable........................... 9,715,389 9,098,108
------------ ------------
Total investments................................. 444,539,954 394,284,554
Receivables --
Employees' contributions............................... 995,173 687,351
Employers' contributions............................... 888,716 599,077
Accrued interest and dividends......................... 505,993 701,953
Due from broker........................................ 318,272 --
------------ ------------
Total receivables................................. 2,708,154 1,988,381
Cash...................................................... 21 59
------------ ------------
Total assets...................................... 447,248,129 396,272,994
LIABILITIES:
Due to broker............................................. 813,217 --
------------ ------------
Total liabilities................................. 813,217 --
------------ ------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS...................... $446,434,912 $396,272,994
============ ============
</TABLE>
The accompanying notes to financial statements are an integral part of these
financial statements.
3
<PAGE> 4
TENNECO THRIFT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<S> <C>
NET ASSETS AVAILABLE FOR PLAN BENEFITS, beginning of year... $396,272,994
------------
ADD:
Dividends --
Tenneco Inc. common stock.............................. 3,850,286
Other corporate securities............................. 318,119
Registered investment companies........................ 6,601,033
Interest.................................................. 5,100,365
------------
15,869,803
Net appreciation in fair value of investments............. 13,235,400
------------
Net investment income............................. 29,105,203
Contributions --
Employees.............................................. 22,274,711
Employers.............................................. 19,705,345
Rollovers.............................................. 1,999,286
------------
Total contributions............................... 43,979,342
Repayment of loan interest................................ 643,620
Transfers from other plans (Note 8)....................... 20,255,484
------------
Total additions................................... 93,983,649
------------
DEDUCT:
Withdrawals............................................... 43,345,159
Administrative expenses................................... 476,572
------------
Total deductions.................................. 43,821,731
------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS, end of year......... $446,434,912
============
</TABLE>
The accompanying notes to financial statements are an integral part of this
financial statement.
4
<PAGE> 5
TENNECO THRIFT PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
1. DESCRIPTION OF THE THRIFT PLAN:
The following description of the Tenneco Thrift Plan (the Thrift Plan) provides
only general information. Participants should refer to the Thrift Plan document
for a more complete description of the Thrift Plan's provisions.
GENERAL
The Thrift Plan is a defined contribution plan subject to the provisions of the
Employee Retirement Income Security Act of 1974, as amended.
The Thrift Plan covers eligible employees of Tenneco Inc. and its subsidiaries
(collectively, the Employers) that have adopted the Thrift Plan.
CONTRIBUTIONS
Eligible employees electing to participate in the Thrift Plan may make salary
deferral contributions by payroll deduction of not less than 4 percent nor
greater than 8 percent of their base salary, with such contributions limited to
$10,000 for 1998. The Employers contribute on behalf of the participant an
amount up to the participant's contribution according to the following
percentages of the participant's base salary, based on the number of years of
participation in the Thrift Plan: 4 percent -- through three years; 5
percent -- over three through five years; 6 percent -- over five through seven
years; and 8 percent -- over seven years. The participant immediately vests in
Employers' contributions.
Employers' contributions are made in the form of Tenneco Inc. common stock. The
Employers' matching contributions and the related earnings made after January 1,
1993, must remain in the form of Tenneco Inc. common stock until the participant
reaches age 55 or terminates employment and requests a total distribution.
VESTING
All participants are 100 percent vested in their entire account balance in the
Thrift Plan.
WITHDRAWALS AND PARTICIPANT LOANS
Upon retirement or other termination of employment, the participant may receive
the value of his account as a lump-sum distribution. A participant who has
attained age 55 may request an in-service withdrawal. If a participant has not
attained age 59 1/2, he may elect to withdraw all or part of his account
balance, reduced by the portion of his account balance attributable to salary
deferral contributions. A participant who has not attained age 55 may request an
in-service withdrawal of his employee contributions made prior to April 1, 1984,
and any Employers' matching contributions credited to his account prior to
January 1, 1993. Plan equity as of December 31, 1998 and 1997, includes amounts
pending distribution to participants of $1,043,600 and $415,429, respectively.
Active participants and certain other individuals who have not had a loan during
the previous three months may obtain a loan with a term not to exceed 54 months
from his account. The borrower may have only one loan outstanding at any time,
and the amount of the loan may not be less than $1,000 and shall not exceed the
lesser of (a) $50,000 or (b) one-half the borrower's account balance. The loan
interest rate is equal to the Wall Street Journal Prime Rate. Loan principal and
interest repayments are made through payroll deductions.
ADMINISTRATION
The Thrift Plan is administered by the Tenneco Benefits Committee (the
Committee). NationsBank of Texas, N.A., was the trustee of the Thrift Plan Trust
(the Trust) prior to February 1, 1998. During 1997, the
5
<PAGE> 6
Defined Contribution Division of NationsBank of Texas, N.A., was purchased by
Bankers Trust Company. Effective February 1, 1998, the Thrift Plan transferred
all assets to Bankers Trust Company as new trustee.
2. SUMMARY OF ACCOUNTING POLICIES:
BASIS OF ACCOUNTING
The financial statements of the Thrift Plan are presented on the accrual basis
of accounting. The investments of the Thrift Plan are generally 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. The BASIC Agreement on U.S. Treasury notes market value was based upon
the difference between the quoted market value of the U.S. Treasury notes and
the amortized cost of the related securities. 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 value per share
at the close of business each day.
EXPENSES
Substantially all administrative expenses are paid by the Thrift Plan. These
expenses include record-keeping, audit and trustee fees.
USE OF ESTIMATES
The preparation of the financial statements in conformity with generally
accepted accounting principles requires management to use estimates and
assumptions that affect the accompanying financial statements and disclosures.
Actual results could differ from those estimates.
3. INVESTMENT OPTIONS:
Participants 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.
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.
6
<PAGE> 7
Money Market Fund -- Invests in Nations Cash Reserves, which seeks to
preserve principal value and maintain a high degree of liquidity while
providing current income. The fund also invested in U.S. Treasury
securities (see Note 4) and held the guaranteed investment contract, which
was frozen to new participation.
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 fund transfers to these funds.
Interest and dividends earned by these funds are transferred to the Money Market
Fund.
See Exhibits 1 and 2 for individual fund information.
4. BASIC AGREEMENT:
Effective November 24, 1993, the Thrift Plan entered into the Benefit Accessible
Securities Investment Contract (BASIC) Master Agreement (BASIC Agreement) with
Bankers Trust Company (Delaware) in order to increase the rate of return of the
Money Market Fund. Under the BASIC Agreement, monies were invested in U.S.
Treasury securities (the Securities) with original maturities ranging from
approximately 11 months to 37 months. The BASIC Agreement provided that, in the
event of liquidation required to pay withdrawals, the Securities would be sold
to Bankers Trust Company at face value adjusted for any unamortized
premium/discount and BASIC Agreement fee. As a result, the Thrift Plan was
generally protected from declines in the market value of the Securities and
relinquished the benefits of appreciation in their market value.
As consideration for the BASIC Agreement, the Thrift Plan was required to pay an
initial fee to Bankers Trust Company; such fee was amortized over the term of
the Securities. During 1998, the last U.S. Treasury security matured, and no new
Securities will be purchased under the BASIC agreement.
5. RISKS AND UNCERTAINTIES:
The Thrift Plan provides for investment in corporate securities, collective
trust funds, registered investment companies, pooled separate accounts,
guaranteed investment contracts 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.
6. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500:
The following is a reconciliation of net assets available for plan benefits per
the financial statements to the Form 5500 as of December 31, 1998 and 1997.
<TABLE>
<CAPTION>
1998 1997
------------ ------------
<S> <C> <C>
Net assets available for plan benefits per the financial
statements................................................ $446,434,912 $396,272,994
Less -- Amounts allocated to withdrawing participants..... (1,043,600) (415,429)
------------ ------------
Net assets available for plan benefits per the Form 5500.... $445,391,312 $395,973,330
============ ============
</TABLE>
The following is a reconciliation of withdrawals per the financial statements to
the Form 5500 for the year ended December 31, 1998:
<TABLE>
<S> <C>
Withdrawals per the financial statements.................... $43,345,159
Add -- Amounts allocated to withdrawing participants at
December 31, 1998...................................... 1,043,600
Less -- Amounts allocated to withdrawing participants at
December 31, 1997...................................... (415,429)
-----------
Withdrawals per the Form 5500............................... $43,973,330
===========
</TABLE>
7
<PAGE> 8
Amounts allocated to withdrawing participants are recorded on the Form 5500 for
benefit claims that have been processed and approved for payment prior to
December 31 but not paid as of that date.
7. FEDERAL INCOME TAXES:
The Thrift Plan obtained its latest determination letter on August 19, 1996, in
which the Internal Revenue Service stated that the Thrift Plan, as then
designed, was in compliance with the applicable requirements of the Internal
Revenue Code. The Thrift Plan has been amended since receiving the determination
letter. However, the Thrift Plan administrator believes that the Thrift Plan is
currently designed and being operated in compliance with the applicable
requirements of the Internal Revenue Code. Therefore, the Thrift Plan
administrator believes that the Thrift Plan was qualified and the related trust
was tax-exempt as of the financial statement date.
A participant is not subject to federal income tax on matching Employer
contributions, salary deferral contributions or earnings on such participant's
account balance until distributed.
8. TRANSFERS FROM OTHER PLANS:
Effective April 22, 1998, the salaried employees of Tenneco Packaging at the
Pomona, California; Visalia, California; Kent, Washington; and Portland, Oregon,
facilities, who were participants in the Richter Manufacturing Corporation
Profit Sharing and 401(k) Plan (the Richter Plan), became eligible to
participate in the Thrift Plan.
For the period from April 22, 1998, through December 31, 1998, certain special
provisions, as defined in the Richter Plan special appendix, applied to the
Richter Plan participants. Effective January 1, 1999, the special provisions no
longer apply and the provisions of the Thrift Plan apply to Richter Plan
participants.
On December 31, 1998, the Richter Plan's salaried accounts were merged into the
Thrift Plan. In conjunction with the merger, the Thrift Plan received
approximately $4,500,000 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 Thrift Plan. These assets are recorded in
Exhibits 1 and 2 as Merger Assets.
On December 31, 1998, the salaried 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 under
the Astro-Valcour, Inc. 401(k) Savings and Retirement Accumulation Plan (the AVI
Plan) became eligible to participate in the Thrift Plan and their account
balances were merged into the Thrift Plan. In conjunction with the merger, the
Thrift Plan received approximately $15,700,000 from the AVI Plan trustee.
Subsequent to December 31, 1998, the AVI Plan's assets were liquidated and
reinvested into similar investment options available under the Thrift Plan.
These assets are recorded in Exhibits 1 and 2 as Merger Assets.
9. TERMINATION OF THE THRIFT PLAN:
Although the participating Employers intend to continue the Thrift Plan
indefinitely, they reserve the right to terminate the Thrift Plan or withdraw
from participation in the Thrift Plan. Any assets which are not allocated to the
accounts of participants upon the complete termination of the Thrift Plan, or
complete discontinuance of contributions, will be allocated among all of the
participants' accounts pro rata on the basis of their respective balances.
10. SUBSEQUENT EVENTS:
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. common
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.
8
<PAGE> 9
In connection with the Spin-off, Tenneco Packaging will become the sole sponsor
of the 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 Thrift Plan will be
transferred.
9
<PAGE> 10
EXHIBIT 1
TENNECO THRIFT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
AS OF DECEMBER 31, 1998
<TABLE>
<CAPTION>
PARTICIPANT-DIRECTED INVESTMENTS
--------------------------------------------------------
BZW BZW BARCLAYS FIDELITY
TENNECO INC. BARCLAYS U.S. DEBT GROWTH
COMMON EQUITY INDEX MARKET INDEX COMPANY
STOCK FUND FUND FUND
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at market value --
Corporate securities --
Tenneco Inc. common stock.............................. $59,636,440 $ -- $ -- $ --
El Paso Energy common stock............................ -- -- -- --
Newport News Shipbuilding Inc. common stock............ -- -- -- --
----------- ----------- ---------- -----------
59,636,440 -- -- --
Collective trust funds --
BZW Barclays Equity Index Fund......................... -- 56,027,686 -- --
BZW Barclays U.S. Debt Market Index Fund............... -- -- 9,125,071 --
Other.................................................. -- -- -- --
----------- ----------- ---------- -----------
-- 56,027,686 9,125,071 --
Registered investment companies --
Fidelity Growth Company Fund........................... -- -- -- 58,323,474
INVESCO Value Trust Total Return Fund.................. -- -- -- --
Putnam New Opportunities Fund.......................... -- -- -- --
Templeton Foreign Fund................................. -- -- -- --
Other.................................................. -- -- -- --
----------- ----------- ---------- -----------
-- -- -- 58,323,474
Pooled separate accounts................................. -- -- -- --
Guaranteed investment contracts.......................... -- -- -- --
Bankers Trust Pyramid Directed Account Cash Fund......... 1,680,618 -- -- --
Nations Cash Reserves.................................... -- -- -- --
Participant loans receivable............................. -- -- -- --
----------- ----------- ---------- -----------
Total investments..................................... 61,317,058 56,027,686 9,125,071 58,323,474
----------- ----------- ---------- -----------
Receivables --
Employees' contributions................................. 140,422 162,714 31,952 214,898
Employers' contributions................................. -- -- -- --
Accrued interest and dividends........................... 9,083 1,698 269 2,252
Due from broker.......................................... -- -- -- --
----------- ----------- ---------- -----------
Total receivables..................................... 149,505 164,412 32,221 217,150
Cash...................................................... -- 3 -- --
----------- ----------- ---------- -----------
Total assets.......................................... 61,466,563 56,192,101 9,157,292 58,540,624
LIABILITIES:
Due to broker............................................. -- 168,640 127,632 300,553
----------- ----------- ---------- -----------
Total liabilities..................................... -- 168,640 127,632 300,553
OPTION TRANSFERS RECEIVABLE (PAYABLE)...................... 117,780 4,213 95,389 60,650
----------- ----------- ---------- -----------
NET ASSETS AVAILABLE FOR PLAN BENEFITS..................... $61,584,343 $56,027,674 $9,125,049 $58,300,721
=========== =========== ========== ===========
<CAPTION>
PARTICIPANT-DIRECTED INVESTMENTS
---------------------------------------------------------------------
INVESCO PUTNAM
VALUE TRUST NEW TEMPLETON MONEY
TOTAL RETURN OPPORTUNITIES FOREIGN MARKET PARTICIPANT
FUND FUND FUND FUND LOANS
------------ ------------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C>
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.................. 15,661,215 -- -- -- --
Putnam New Opportunities Fund.......................... -- 30,317,365 -- -- --
Templeton Foreign Fund................................. -- -- 6,554,164 -- --
Other.................................................. -- -- -- -- --
----------- ----------- ---------- ----------- ----------
15,661,215 30,317,365 6,554,164 -- --
Pooled separate accounts................................. -- -- -- -- --
Guaranteed investment contracts.......................... -- -- -- -- --
Bankers Trust Pyramid Directed Account Cash Fund......... -- -- -- 178,960 --
Nations Cash Reserves.................................... -- -- -- 93,101,850 --
Participant loans receivable............................. -- -- -- -- 9,053,614
----------- ----------- ---------- ----------- ----------
Total investments..................................... 15,661,215 30,317,365 6,554,164 93,280,810 9,053,614
----------- ----------- ---------- ----------- ----------
Receivables --
Employees' contributions................................. 67,677 176,733 47,888 152,889 --
Employers' contributions................................. -- -- -- -- --
Accrued interest and dividends........................... 10,530 1,505 376 393,800 --
Due from broker.......................................... -- -- -- 318,272 --
----------- ----------- ---------- ----------- ----------
Total receivables..................................... 78,207 178,238 48,264 864,961 --
Cash...................................................... -- 18 -- -- --
----------- ----------- ---------- ----------- ----------
Total assets.......................................... 15,739,422 30,495,621 6,602,428 94,145,771 9,053,614
LIABILITIES:
Due to broker............................................. 124,944 81,356 10,092 -- --
----------- ----------- ---------- ----------- ----------
Total liabilities..................................... 124,944 81,356 10,092 -- --
OPTION TRANSFERS RECEIVABLE (PAYABLE)...................... 45,795 (96,880) (38,172) (83,880) (147,289)
----------- ----------- ---------- ----------- ----------
NET ASSETS AVAILABLE FOR PLAN BENEFITS..................... $15,660,273 $30,317,385 $6,554,164 $94,061,891 $8,906,325
=========== =========== ========== =========== ==========
<CAPTION>
NONPARTICIPANT-DIRECTED INVESTMENTS
--------------------------------------------------------------------
NEWPORT NEWS
EL PASO SHIPBUILDING
TENNECO INC. ENERGY INC.
COMMON COMMON COMMON CLEARING MERGER
STOCK STOCK STOCK ACCOUNT ASSETS
------------ ----------- ------------ ---------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at market value --
Corporate securities --
Tenneco Inc. common stock.............................. $60,217,935 $ -- $ -- $ 16,861 $ --
El Paso Energy common stock............................ -- 11,065,486 -- 57,163 --
Newport News Shipbuilding Inc. common stock............ -- -- 10,652,879 -- --
----------- ----------- ----------- ---------- -----------
60,217,935 11,065,486 10,652,879 74,024 --
Collective trust funds --
BZW Barclays Equity Index Fund......................... -- -- -- -- --
BZW Barclays U.S. Debt Market Index Fund............... -- -- -- -- --
Other.................................................. -- -- -- -- 3,449,424
----------- ----------- ----------- ---------- -----------
-- -- -- -- 3,449,424
Registered investment companies --
Fidelity Growth Company Fund........................... -- -- -- -- 2,562,302
INVESCO Value Trust Total Return Fund.................. -- -- -- -- --
Putnam New Opportunities Fund.......................... -- -- -- -- --
Templeton Foreign Fund................................. -- -- -- -- --
Other.................................................. -- -- -- -- 9,191,903
----------- ----------- ----------- ---------- -----------
-- -- -- -- 11,754,205
Pooled separate accounts................................. -- -- -- -- 3,703,077
Guaranteed investment contracts.......................... -- -- -- -- 687,003
Bankers Trust Pyramid Directed Account Cash Fund......... 1,016,598 222,838 211,539 1,162,714 --
Nations Cash Reserves.................................... -- -- -- -- --
Participant loans receivable............................. -- -- -- -- 661,775
----------- ----------- ----------- ---------- -----------
Total investments..................................... 61,234,533 11,288,324 10,864,418 1,236,738 20,255,484
----------- ----------- ----------- ---------- -----------
Receivables --
Employees' contributions................................. -- -- -- -- --
Employers' contributions................................. 888,716 -- -- -- --
Accrued interest and dividends........................... 17,977 63,230 1,432 3,841 --
Due from broker.......................................... -- -- -- -- --
----------- ----------- ----------- ---------- -----------
Total receivables..................................... 906,693 63,230 1,432 3,841 --
Cash...................................................... -- -- -- -- --
----------- ----------- ----------- ---------- -----------
Total assets.......................................... 62,141,226 11,351,554 10,865,850 1,240,579 20,255,484
LIABILITIES:
Due to broker............................................. -- -- -- -- --
----------- ----------- ----------- ---------- -----------
Total liabilities..................................... -- -- -- -- --
OPTION TRANSFERS RECEIVABLE (PAYABLE)...................... 43,605 (64,809) (2,618) 66,216 --
----------- ----------- ----------- ---------- -----------
NET ASSETS AVAILABLE FOR PLAN BENEFITS..................... $62,184,831 $11,286,745 $10,863,232 $1,306,795 $20,255,484
=========== =========== =========== ========== ===========
<CAPTION>
TOTAL
------------
<S> <C>
ASSETS:
Investments, at market value --
Corporate securities --
Tenneco Inc. common stock.............................. $119,871,236
El Paso Energy common stock............................ 11,122,649
Newport News Shipbuilding Inc. common stock............ 10,652,879
------------
141,646,764
Collective trust funds --
BZW Barclays Equity Index Fund......................... 56,027,686
BZW Barclays U.S. Debt Market Index Fund............... 9,125,071
Other.................................................. 3,449,424
------------
68,602,181
Registered investment companies --
Fidelity Growth Company Fund........................... 60,885,776
INVESCO Value Trust Total Return Fund.................. 15,661,215
Putnam New Opportunities Fund.......................... 30,317,365
Templeton Foreign Fund................................. 6,554,164
Other.................................................. 9,191,903
------------
122,610,423
Pooled separate accounts................................. 3,703,077
Guaranteed investment contracts.......................... 687,003
Bankers Trust Pyramid Directed Account Cash Fund......... 4,473,267
Nations Cash Reserves.................................... 93,101,850
Participant loans receivable............................. 9,715,389
------------
Total investments..................................... 444,539,954
------------
Receivables --
Employees' contributions................................. 995,173
Employers' contributions................................. 888,716
Accrued interest and dividends........................... 505,993
Due from broker.......................................... 318,272
------------
Total receivables..................................... 2,708,154
Cash...................................................... 21
------------
Total assets.......................................... 447,248,129
LIABILITIES:
Due to broker............................................. 813,217
------------
Total liabilities..................................... 813,217
OPTION TRANSFERS RECEIVABLE (PAYABLE)...................... --
------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS..................... $446,434,912
============
</TABLE>
This exhibit is an integral part of the accompanying financial statements.
10
<PAGE> 11
EXHIBIT 1
CONTINUED
TENNECO THRIFT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
AS OF DECEMBER 31, 1997
<TABLE>
<CAPTION>
PARTICIPANT-DIRECTED INVESTMENTS
-----------------------------------------------------------------------
BZW BZW BARCLAYS FIDELITY INVESCO
TENNECO INC. BARCLAYS U.S. DEBT GROWTH VALUE TRUST
COMMON EQUITY INDEX MARKET INDEX COMPANY TOTAL RETURN
STOCK FUND FUND FUND FUND
------------ ------------ ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at market value --
Corporate securities --
Tenneco Inc. common stock.................... $61,357,748 $ -- $ -- $ -- $ --
El Paso Natural Gas Company common stock..... -- -- -- -- --
Newport News Shipbuilding Inc. common
stock...................................... -- -- -- -- --
----------- ----------- ---------- ----------- -----------
61,357,748 -- -- -- --
Collective trust funds --
BZW Barclays Equity Index Fund............... -- 44,326,926 -- -- --
BZW Barclays U.S. Debt Market Index Fund..... -- -- 6,277,275 -- --
----------- ----------- ---------- ----------- -----------
-- 44,326,926 6,277,275 -- --
Registered investment companies --
Fidelity Growth Company Fund................. -- -- -- 51,842,749 --
INVESCO Value Trust Total Return Fund........ -- -- -- -- 12,086,577
Putnam New Opportunities Fund................ -- -- -- -- --
Templeton Foreign Fund....................... -- -- -- -- --
----------- ----------- ---------- ----------- -----------
-- -- -- 51,842,749 12,086,577
U.S. Treasury note............................ -- -- -- -- --
BASIC Agreement on U.S. Treasury note......... -- -- -- -- --
Nations Cash Reserves......................... 2,091,502 -- -- -- --
Guaranteed investment contracts............... -- -- -- -- --
Participant loans receivable.................. -- -- -- -- --
----------- ----------- ---------- ----------- -----------
Total investments.......................... 63,449,250 44,326,926 6,277,275 51,842,749 12,086,577
----------- ----------- ---------- ----------- -----------
Receivables --
Employees' contributions...................... 124,354 101,275 16,709 145,033 30,997
Employers' contributions...................... -- -- -- -- --
Accrued interest and dividends................ 8,185 1,945 185 2,521 3,607
----------- ----------- ---------- ----------- -----------
Total receivables.......................... 132,539 103,220 16,894 147,554 34,604
Cash............................................ -- 37 22 -- --
OPTION TRANSFERS RECEIVABLE (PAYABLE)............ 112,735 (2,312) (23,151) 23,057 15,221
----------- ----------- ---------- ----------- -----------
NET ASSETS AVAILABLE FOR PLAN BENEFITS........... $63,694,524 $44,427,871 $6,271,040 $52,013,360 $12,136,402
=========== =========== ========== =========== ===========
<CAPTION>
PARTICIPANT-DIRECTED INVESTMENTS
------------------------------------------------------
PUTNAM
NEW TEMPLETON MONEY
OPPORTUNITIES FOREIGN MARKET PARTICIPANT
FUND FUND FUND LOANS
------------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at market value --
Corporate securities --
Tenneco Inc. common stock.................... $ -- $ -- $ -- $ --
El Paso Natural Gas Company common stock..... -- -- -- --
Newport News Shipbuilding Inc. common
stock...................................... -- -- -- --
----------- ---------- ----------- ----------
-- -- -- --
Collective trust funds --
BZW Barclays Equity Index Fund............... -- -- -- --
BZW Barclays U.S. Debt Market Index Fund..... -- -- -- --
----------- ---------- ----------- ----------
-- -- -- --
Registered investment companies --
Fidelity Growth Company Fund................. -- -- -- --
INVESCO Value Trust Total Return Fund........ -- -- -- --
Putnam New Opportunities Fund................ 23,249,618 -- -- --
Templeton Foreign Fund....................... -- 8,060,909 -- --
----------- ---------- ----------- ----------
23,249,618 8,060,909 -- --
U.S. Treasury note............................ -- -- 6,010,320 --
BASIC Agreement on U.S. Treasury note......... -- -- (8,557) --
Nations Cash Reserves......................... -- -- 91,536,551 --
Guaranteed investment contracts............... -- -- 221,242 --
Participant loans receivable.................. -- -- -- 9,098,108
----------- ---------- ----------- ----------
Total investments.......................... 23,249,618 8,060,909 97,759,556 9,098,108
----------- ---------- ----------- ----------
Receivables --
Employees' contributions...................... 79,530 28,059 161,394 --
Employers' contributions...................... -- -- -- --
Accrued interest and dividends................ 1,477 623 598,354 --
----------- ---------- ----------- ----------
Total receivables.......................... 81,007 28,682 759,748 --
Cash............................................ -- -- -- --
OPTION TRANSFERS RECEIVABLE (PAYABLE)............ (22,509) (39,639) 46,555 (87,901)
----------- ---------- ----------- ----------
NET ASSETS AVAILABLE FOR PLAN BENEFITS........... $23,308,116 $8,049,952 $98,565,859 $9,010,207
=========== ========== =========== ==========
<CAPTION>
NONPARTICIPANT-DIRECTED INVESTMENTS
-----------------------------------------------------
EL PASO NEWPORT NEWS
NATURAL GAS SHIPBUILDING
TENNECO INC. COMPANY INC.
COMMON COMMON COMMON CLEARING
STOCK STOCK STOCK ACCOUNT TOTAL
------------ ------------ ------------ -------- ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at market value --
Corporate securities --
Tenneco Inc. common stock.................... $53,301,391 $ -- $ -- $ -- $114,659,139
El Paso Natural Gas Company common stock..... -- 12,370,862 -- -- 12,370,862
Newport News Shipbuilding Inc. common
stock...................................... -- -- 9,793,554 -- 9,793,554
----------- ----------- ---------- -------- ------------
53,301,391 12,370,862 9,793,554 -- 136,823,555
Collective trust funds --
BZW Barclays Equity Index Fund............... -- -- -- -- 44,326,926
BZW Barclays U.S. Debt Market Index Fund..... -- -- -- -- 6,277,275
----------- ----------- ---------- -------- ------------
-- -- -- -- 50,604,201
Registered investment companies --
Fidelity Growth Company Fund................. -- -- -- -- 51,842,749
INVESCO Value Trust Total Return Fund........ -- -- -- -- 12,086,577
Putnam New Opportunities Fund................ -- -- -- -- 23,249,618
Templeton Foreign Fund....................... -- -- -- -- 8,060,909
----------- ----------- ---------- -------- ------------
-- -- -- -- 95,239,853
U.S. Treasury note............................ -- -- -- -- 6,010,320
BASIC Agreement on U.S. Treasury note......... -- -- -- -- (8,557)
Nations Cash Reserves......................... 1,816,885 233,873 190,601 426,420 96,295,832
Guaranteed investment contracts............... -- -- -- -- 221,242
Participant loans receivable.................. -- -- -- -- 9,098,108
----------- ----------- ---------- -------- ------------
Total investments.......................... 55,118,276 12,604,735 9,984,155 426,420 394,284,554
----------- ----------- ---------- -------- ------------
Receivables --
Employees' contributions...................... -- -- -- -- 687,351
Employers' contributions...................... 599,077 -- -- -- 599,077
Accrued interest and dividends................ 10,248 69,871 776 4,161 701,953
----------- ----------- ---------- -------- ------------
Total receivables.......................... 609,325 69,871 776 4,161 1,988,381
Cash............................................ -- -- -- -- 59
OPTION TRANSFERS RECEIVABLE (PAYABLE)............ 19,895 (74,138) (4,632) 36,819 --
----------- ----------- ---------- -------- ------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS........... $55,747,496 $12,600,468 $9,980,299 $467,400 $396,272,994
=========== =========== ========== ======== ============
</TABLE>
This exhibit is an integral part of the accompanying financial statements.
11
<PAGE> 12
EXHIBIT 2
TENNECO THRIFT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND
INFORMATION
AS OF DECEMBER 31, 1998
<TABLE>
<CAPTION>
PARTICIPANT-DIRECTED INVESTMENTS
---------------------------------------------------------------------------------------
BZW BZW BARCLAYS FIDELITY INVESCO PUTNAM
TENNECO INC. 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>
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, beginning of year....... $63,694,524 $44,427,871 $6,271,040 $52,013,360 $12,136,402 $23,308,116
----------- ----------- ---------- ----------- ----------- -----------
ADD:
Dividends --
Tenneco Inc. common stock....... 1,987,228 -- -- -- -- --
Other corporate securities...... -- -- -- -- -- --
Registered investment
companies...................... -- -- -- 4,139,883 786,569 950,538
Interest.......................... 90,052 -- -- -- -- --
----------- ----------- ---------- ----------- ----------- -----------
2,077,280 -- -- 4,139,883 786,569 950,538
Net appreciation (depreciation) in
fair value of investments....... (8,032,624) 12,425,045 598,870 8,912,416 1,014,575 4,750,615
----------- ----------- ---------- ----------- ----------- -----------
Net investment income
(loss)...................... (5,955,344) 12,425,045 598,870 13,052,299 1,801,144 5,701,153
Contributions --
Employees....................... 3,475,349 3,539,521 634,721 4,905,941 1,328,314 3,439,304
Employers....................... -- -- -- -- -- --
Rollovers....................... 150,841 562,222 113,290 544,474 147,062 324,066
----------- ----------- ---------- ----------- ----------- -----------
Total contributions.......... 3,626,190 4,101,743 748,011 5,450,415 1,475,376 3,763,370
Repayment of loan interest........ 107,083 42,405 5,641 56,721 14,860 36,295
Transfers from other plans (Note
8).............................. -- -- -- -- -- --
----------- ----------- ---------- ----------- ----------- -----------
Total additions.............. (2,222,071) 16,569,193 1,352,522 18,559,435 3,291,380 9,500,818
----------- ----------- ---------- ----------- ----------- -----------
DEDUCT:
Withdrawals....................... 4,531,793 5,114,589 381,509 6,126,978 1,277,698 2,543,808
Administrative expenses........... -- -- -- -- -- --
----------- ----------- ---------- ----------- ----------- -----------
Total deductions............. 4,531,793 5,114,589 381,509 6,126,978 1,277,698 2,543,808
OPTION TRANSFERS................... 4,643,683 145,199 1,882,996 (6,145,096) 1,510,189 52,259
----------- ----------- ---------- ----------- ----------- -----------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, end of year............. $61,584,343 $56,027,674 $9,125,049 $58,300,721 $15,660,273 $30,317,385
=========== =========== ========== =========== =========== ===========
<CAPTION>
PARTICIPANT-DIRECTED INVESTMENTS
---------------------------------------
TEMPLETON MONEY
FOREIGN MARKET PARTICIPANT
FUND FUND LOANS
----------- ----------- -----------
<S> <C> <C> <C>
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, beginning of year....... $ 8,049,952 $98,565,859 $9,010,207
----------- ----------- ----------
ADD:
Dividends --
Tenneco Inc. common stock....... -- -- --
Other corporate securities...... -- -- --
Registered investment
companies...................... 724,043 -- --
Interest.......................... -- 4,865,491 --
----------- ----------- ----------
724,043 4,865,491 --
Net appreciation (depreciation) in
fair value of investments....... (1,129,913) (51,116) --
----------- ----------- ----------
Net investment income
(loss)...................... (405,870) 4,814,375 --
Contributions --
Employees....................... 1,029,008 3,922,553 --
Employers....................... -- -- --
Rollovers....................... 102,247 55,084 --
----------- ----------- ----------
Total contributions.......... 1,131,255 3,977,637 --
Repayment of loan interest........ 10,955 138,379 --
Transfers from other plans (Note
8).............................. -- -- --
----------- ----------- ----------
Total additions.............. 736,340 8,930,391 --
----------- ----------- ----------
DEDUCT:
Withdrawals....................... 726,902 15,291,696 580,434
Administrative expenses........... -- -- --
----------- ----------- ----------
Total deductions............. 726,902 15,291,696 580,434
OPTION TRANSFERS................... (1,505,226) 1,857,337 476,552
----------- ----------- ----------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, end of year............. $ 6,554,164 $94,061,891 $8,906,325
=========== =========== ==========
<CAPTION>
NONPARTICIPANT-DIRECTED INVESTMENTS
--------------------------------------------------------------------
NEWPORT NEWS
EL PASO SHIPBUILDING
TENNECO INC. ENERGY INC.
COMMON COMMON COMMON CLEARING MERGER
STOCK STOCK STOCK ACCOUNT ASSETS TOTAL
------------ ----------- ------------ ---------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, beginning of year....... $55,747,496 $12,600,468 $ 9,980,299 $ 467,400 $ -- $396,272,994
----------- ----------- ----------- ---------- ----------- ------------
ADD:
Dividends --
Tenneco Inc. common stock....... 1,863,058 -- -- -- -- 3,850,286
Other corporate securities...... -- 260,414 57,705 -- -- 318,119
Registered investment
companies...................... -- -- -- -- -- 6,601,033
Interest.......................... 84,426 6,312 6,612 47,472 -- 5,100,365
----------- ----------- ----------- ---------- ----------- ------------
1,947,484 266,726 64,317 47,472 -- 15,869,803
Net appreciation (depreciation) in
fair value of investments....... (8,476,370) 565,724 2,622,802 35,376 -- 13,235,400
----------- ----------- ----------- ---------- ----------- ------------
Net investment income
(loss)...................... (6,528,886) 832,450 2,687,119 82,848 -- 29,105,203
Contributions --
Employees....................... -- -- -- -- -- 22,274,711
Employers....................... 19,705,345 -- -- -- -- 19,705,345
Rollovers....................... -- -- -- -- -- 1,999,286
----------- ----------- ----------- ---------- ----------- ------------
Total contributions.......... 19,705,345 -- -- -- -- 43,979,342
Repayment of loan interest........ 231,281 -- -- -- -- 643,620
Transfers from other plans (Note
8).............................. -- -- -- -- 20,255,484 20,255,484
----------- ----------- ----------- ---------- ----------- ------------
Total additions.............. 13,407,740 832,450 2,687,119 82,848 20,255,484 93,983,649
----------- ----------- ----------- ---------- ----------- ------------
DEDUCT:
Withdrawals....................... 5,000,853 995,022 808,749 (34,872) -- 43,345,159
Administrative expenses........... -- -- -- 476,572 -- 476,572
----------- ----------- ----------- ---------- ----------- ------------
Total deductions............. 5,000,853 995,022 808,749 441,700 -- 43,821,731
OPTION TRANSFERS................... (1,969,552) (1,151,151) (995,437) 1,198,247 -- --
----------- ----------- ----------- ---------- ----------- ------------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, end of year............. $62,184,831 $11,286,745 $10,863,232 $1,306,795 $20,255,484 $446,434,912
=========== =========== =========== ========== =========== ============
</TABLE>
This exhibit is an integral part of the accompanying financial statements.
12
<PAGE> 13
SCHEDULE I
TENNECO THRIFT PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1998
<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 3,519,104 $140,390,616 $119,871,236
El Paso Energy Company............... El Paso Energy common stock 319,497 6,455,816 11,122,649
Newport News Shipbuilding Inc........ Newport News Shipbuilding
Inc. common stock 318,586 4,564,457 10,652,879
------------ ------------
Total corporate
securities 151,410,889 141,646,764
------------ ------------
COLLECTIVE TRUST FUNDS:
BZW Barclays Global Investors........ BZW Barclays Equity Index
Fund 1,667,349 34,804,594 56,027,686
BZW Barclays Global Investors........ BZW Barclays U.S. Debt
Market Index Fund 647,056 8,170,097 9,125,071
Fidelity Investments Institutional
Services Co. ...................... Fidelity Managed Income
Portfolio (1998 average
yield 5.93%) 3,449,424 3,449,424 3,449,424
------------ ------------
Total collective trust
funds 46,424,115 68,602,181
------------ ------------
REGISTERED INVESTMENT COMPANIES:
Fidelity Investments Institutional
Services Co. ...................... Fidelity Balanced Fund 53 750 864
Fidelity Investments Institutional
Services Co. ...................... Fidelity Growth & Income
Fund 25,808 986,743 1,183,046
Fidelity Investments Institutional
Services Co. ...................... Fidelity Growth Company
Fund 1,193,370 45,995,130 60,885,776
Fidelity Investments Institutional
Services Co. ...................... Fidelity Intermediate Bond
Fund 6,516 66,129 66,926
Fidelity Investments Institutional
Services Co. ...................... Fidelity International
Growth & Income Fund 42,347 806,836 885,470
Fidelity Investments Institutional
Services Co. ...................... Fidelity Magellan Fund 37,010 3,311,436 4,471,543
Fidelity Investments Institutional
Services Co. ...................... Fidelity Puritan Fund 128,752 2,284,955 2,584,054
INVESCO Funds Group, Inc............. INVESCO Value Trust Total
Return Fund 499,401 13,933,354 15,661,215
Putnam Management Company............ Putnam New Opportunities
Fund 518,866 23,696,901 30,317,365
Franklin Templeton................... Templeton Foreign Fund 781,188 7,899,109 6,554,164
------------ ------------
Total registered
investment companies 98,981,343 122,610,423
------------ ------------
POOLED SEPARATE ACCOUNTS:
Principal Life Insurance Company..... Bond & Mortgage Account 5 2,576 2,575
Principal Life Insurance Company..... Bond Emphasis Balanced
Account 14,784 234,857 242,160
Principal Life Insurance Company..... International Stock Account 8,929 309,517 299,871
Principal Life Insurance Company..... Medium Company Blend
Account 23,755 820,885 780,583
Principal Life Insurance Company..... Medium Company Value
Account 24,169 889,538 895,159
Principal Life Insurance Company..... Money Market Account 20,715 747,882 765,892
</TABLE>
- -------------------------
* Indicated party in interest.
13
<PAGE> 14
SCHEDULE I
CONTINUED
TENNECO THRIFT PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1998
<TABLE>
<CAPTION>
SHARES OR CURRENT
IDENTITY OF ISSUE DESCRIPTION OF ASSET FACE VALUE COST VALUE
----------------- -------------------- ---------- ---- -------
<S> <C> <C> <C> <C>
POOLED SEPARATE ACCOUNTS (Continued):
Principal Life Insurance Company..... Real Estate Account 9 2,574 2,594
Principal Life Insurance Company..... Small Company Blend Account 12,283 448,535 406,958
Principal Life Insurance Company..... Stock Emphasis Balanced
Account 13,866 263,658 272,403
Principal Life Insurance Company..... Stock Index 500 Account 715 27,554 31,778
Principal Life Insurance Company..... U.S. Stock Account 7 2,816 3,104
------------ ------------
Total pooled separate
accounts 3,750,392 3,703,077
------------ ------------
GUARANTEED INVESTMENT CONTRACT:
Principal Life Insurance Company..... Guaranteed Interest Account
(maturity December 31, 1999,
interest 4.53%) 687,003 687,003 687,003
------------ ------------
Total guaranteed investment
contract 687,003 687,003
------------ ------------
MONEY MARKET FUNDS:
Bankers Trust Company*............... Bankers Trust Pyramid
Directed Account Cash Fund 4,473,267 4,473,267 4,473,267
NationsBank of Texas, N.A.*.......... Nations Cash Reserves 93,101,850 93,101,850 93,101,850
------------ ------------
Total money market funds 97,575,117 97,575,117
------------ ------------
TENNECO INC. THRIFT PLAN*.............. Participant loans receivable
(interest rates ranging from
6% to 10%) 9,715,389 9,715,389 9,715,389
------------ ------------
Total assets held for
investment purposes $404,793,856 $444,539,954
============ ============
</TABLE>
- -------------------------
* Indicated party in interest.
14
<PAGE> 15
SCHEDULE II
TENNECO THRIFT PLAN
SCHEDULE OF REPORTABLE TRANSACTIONS -- SERIES OF TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
COSTS OF
IN-KIND COST OF IN-KIND ASSETS
IDENTITY OF PURCHASE EXCHANGES SELLING ASSETS EXCHANGES EXCHANGED
PARTY INVOLVED DESCRIPTION PRICE(a)(c) IN(c) PRICE(b)(c) SOLD OUT(c) OUT
-------------- ----------- ----------- --------- ----------- ------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Tenneco Inc.......... Tenneco Inc. common $12,367,545 $19,402,005 $ 6,625,490 $ 6,125,339 $3,418,872 $3,636,004
stock
Fidelity Investment
Institutional
Services Co. ....... Fidelity Growth 10,955,285 -- 13,386,976 10,510,281 -- --
Company Fund
Bankers Trust
Company............. Bankers Trust 179,524,503 -- 175,051,236 175,051,236 -- --
Pyramid Directed
Account Cash Fund
NationsBank of Texas,
N.A. ............... Nations Cash 109,342,551 -- 112,536,533 112,536,533 -- --
Reserves
<CAPTION>
IDENTITY OF NET
PARTY INVOLVED GAIN (LOSS)
-------------- -----------
<S> <C>
Tenneco Inc.......... $ 283,019
Fidelity Investment
Institutional
Services Co. ....... 2,876,695
Bankers Trust
Company............. --
NationsBank of Texas,
N.A. ............... --
</TABLE>
- -------------------------
(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 assets held on January 1, 1998.
15
<PAGE> 16
SCHEDULE III
TENNECO THRIFT PLAN
SCHEDULE OF REPORTABLE TRANSACTIONS -- SINGLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
CURRENT VALUE
OF ASSET ON NET
PURCHASE SELLING COST OF TRANSACTION GAIN
IDENTITY OF PARTY INVOLVED DESCRIPTION PRICE(A) PRICE(B) ASSETS DATE (LOSS)
- -------------------------- ----------- -------- -------- ------- ------------- ------
<S> <C> <C> <C> <C> <C> <C>
Bankers Trust Company..... Bankers Trust Pyramid Directed
Account Cash Fund $87,889,285 $ -- $87,889,285 $87,889,285 $ --
Bankers Trust Company..... Bankers Trust Pyramid Directed
Account Cash Fund -- 86,859,711 86,859,711 86,859,711 --
NationsBank of Texas,
N.A. .................... Nations Cash Reserves 87,000,000 -- 87,000,000 87,000,000 --
NationsBank of Texas,
N.A. .................... Nations Cash Reserves -- 87,357,089 87,357,089 87,357,089 --
</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.
NOTE: This schedule is a listing of single transactions which exceed 5
percent of the market value of the Tenneco Thrift Plan assets held on
January 1, 1998.
16
<PAGE> 17
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
<TABLE>
<S> <C>
Date: June 28, 1999 By: /s/ DANA G. MEAD
---------------------------------------------
Dana G. Mead
Chairman of the Tenneco
Benefits Committee
</TABLE>
<PAGE> 18
INDEX TO EXHIBIT
<TABLE>
<CAPTION>
EXHIBIT
NUMBER
- -------
<C> <S>
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, 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 (File Nos. 333-17487,
333-27281, 333-30933, 333-48777 and 333-76261).
ARTHUR ANDERSEN LLP
Houston, Texas
June 28, 1999
