<PAGE>
____________________________________________________________________
____________________________________________________________________
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________________ to ________________
Commission File Number 0-15095
________________
TENNECO CREDIT CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 76-0010368
(State of Incorporation) (I.R.S. Employer Identification No.)
Tenneco Building, Houston, Texas 77002
(Address of principal executive offices including Zip Code)
Registrant's telephone number, including area code: (713) 757-2131
________________
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports)
and (2) has been subject to such filing requirements for the past 90
days. YES X NO ___
Indicate the number of shares outstanding of each of the issuer's
classes of common stock as of the latest practicable date.
Common Stock, par value $5 per share: 200 shares as of October 31,
1995.
TENNECO CREDIT CORPORATION MEETS THE CONDITIONS OF GENERAL
INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q AND IS THEREFORE FILING THIS
REPORT WITH A REDUCED DISCLOSURE FORMAT AS PERMITTED BY SUCH
INSTRUCTION.<PAGE>
____________________________________________________________________
____________________________________________________________________<PAGE>
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
<C>
<S>
Part I--Financial Information
Tenneco Credit Corporation and Consolidated Subsidiaries--
Statements of Income........................................ 2
Statements of Cash Flows.................................... 3
Balance Sheets.............................................. 4
Statements of Changes in Stockholder's Equity............... 6
Notes to Financial Statements............................... 7
Management's Discussion and Analysis of Financial
Condition and Results of Operations........................ 9
Part II--Other Information
Item 1. Legal Proceedings...................................... *
Item 2. Changes in Securities.................................. *
Item 3. Defaults Upon Senior Securities........................ *
Item 4. Submission of Matters to a Vote of Security Holders.... *
Item 5. Other Information...................................... *
Item 6. Exhibits and Reports on Form 8-K....................... 13
</TABLE>
__________
* No such response to this item is included herein for the reason that
it is inapplicable or the answer to such item is negative.
1<PAGE>
<PAGE>
PART I--FINANCIAL INFORMATION
TENNECO CREDIT CORPORATION
AND CONSOLIDATED SUBSIDIARIES
STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
(Thousands) (Thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
___________________ __________________
1995 1994 1995 1994
_______ _______ ________ ________
<S> <C> <C> <C> <C>
REVENUES:
Earned finance charges and interest... $30,207 $36,401 $ 97,542 $119,529
Rental income from affiliated company. 1,432 1,432 4,296 4,296
_______ _______ ________ ________
Total revenues..................... 31,639 37,833 101,838 123,825
EXPENSES:
Interest--
Commercial paper................... 727 867 727 3,217
Senior notes....................... 16,459 22,535 56,195 79,894
Subordinated notes................. 2,298 2,280 6,865 6,817
Commitment fees and other.......... 224 703 1,002 2,542
Affiliated companies............... 2,170 - 2,170 1,303
_______ _______ ________ ________
21,878 26,385 66,959 93,773
Depreciation and amortization......... 497 497 1,491 1,491
Operating and administrative.......... 2,832 7,888 9,777 7,047
_______ _______ ________ ________
Total expenses..................... 25,207 34,770 78,227 102,311
_______ _______ ________ ________
OTHER INCOME--Gain on sale of
receivables............................. 943 10,050 943 35,564
_______ _______ ________ ________
INCOME BEFORE INCOME TAXES............... 7,375 13,113 24,554 57,078
INCOME TAXES............................. 2,930 5,043 9,646 22,830
_______ _______ ________ ________
NET INCOME............................... $ 4,445 $ 8,070 $ 14,908 $ 34,248
</TABLE>
(The accompanying notes to financial statements are an
integral part of these statements of income.)<PAGE>
2<PAGE>
<PAGE>
TENNECO CREDIT CORPORATION
AND CONSOLIDATED SUBSIDIARIES
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
(Thousands)
Nine Months Ended
September 30,
_____________________
1995 1994
_________ _________
<S> <C> <C>
OPERATING ACTIVITIES:
Net income............................................ $ 14,908 $ 34,248
Adjustments to reconcile to net cash provided
from operating activities:
Depreciation and amortization...................... 1,491 1,491
Deferred income taxes.............................. (202) 6,454
(Increase) decrease in notes and accounts receiv-
able purchased from affiliates, net............... 534,544 520,299
Change in accounts payable to and receivable
from affiliates................................... 25,515 (8,779)
Increase (decrease) in accrued interest............ (9,638) (25,437)
Increase (decrease) in dealers' reserves........... - (18,148)
(Increase) decrease in notes receivable from
affiliated companies.............................. (25,000) 93,250
Change in other assets and other, net.............. 3,645 104,268
_________ _________
NET CASH PROVIDED FROM OPERATING ACTIVITIES............. 545,263 707,646
_________ _________
INVESTING ACTIVITIES:
Collections on long-term notes receivable............. 43,989 35,001
Purchase of long-term notes receivable................ (310,800) (146)
_________ _________
NET CASH PROVIDED FROM (USED IN) INVESTING ACTIVITIES.... (266,811) 34,855
_________ _________
FINANCING ACTIVITIES:
Increase (decrease) in commercial paper............... 156,883 (240,938)
Increase (decrease) in short-term bank debt........... 100,000 -
Retirement of senior notes............................ (235,600) (501,566)
Dividends paid........................................ (300,000) -
_________ _________
NET CASH USED IN FINANCING ACTIVITIES................... (278,717) (742,504)
_________ _________
NET DECREASE IN CASH AND CASH EQUIVALENTS............... (265) (3)
BEGINNING CASH AND CASH EQUIVALENTS BALANCE............. 332 4
_________ _________
ENDING CASH AND CASH EQUIVALENTS BALANCE................ $ 67 $ 1
CASH PAID DURING THE PERIOD FOR:
Interest.............................................. $ 74,427 $ 118,373<PAGE>
Income taxes.......................................... $ 9,492 $ 16,376
</TABLE>
(The accompanying notes to financial statements are an
integral part of these statements of cash flows.)
3<PAGE>
<PAGE>
TENNECO CREDIT CORPORATION
AND CONSOLIDATED SUBSIDIARIES
BALANCE SHEETS
(Unaudited)
ASSETS
<TABLE>
<CAPTION>
(Thousands)
September 30, December 31, September 30,
1995 1994 1994
_____________ ____________ _____________
<S> <C> <C> <C>
Notes and accounts receivable purchased from
affiliates:
Customers....................................... $ 933,726 $1,522,862 $1,540,100
Affiliated companies............................ - 3,741 3,198
__________ __________ __________
933,726 1,526,603 1,543,298
Less--Unearned finance charges...................... 80,008 137,500 167,597
Allowance for doubtful receivables........... 8,713 9,554 9,938
__________ __________ __________
845,005 1,379,549 1,365,763
__________ __________ __________
Notes receivable:
Non-affiliated companies, including $4,917,
$4,917 and $4,917 due within one year at the
respective dates............................... 23,167 67,156 71,085
Note receivable--Case Corporation................ 284,760 - -
Affiliated companies............................ 25,000 - -
__________ __________ __________
332,927 67,156 71,085
__________ __________ __________
Equipment under operating leases (at cost), less
accumulated depreciation of $19,737, $18,246
and $17,748 at the respective dates.............. 49,869 51,360 51,858
__________ __________ __________
Other assets:
Cash and cash equivalents....................... 67 332 1
Accounts receivable from affiliates............. 5,543 1,193 13,142
Interest receivable and other................... 9,634 16,466 3,597
__________ __________ __________
15,244 17,991 16,740
__________ __________ __________
$1,243,045 $1,516,056 $1,505,446
</TABLE>
(The accompanying notes to financial statements are an
integral part of these balance sheets.)
4<PAGE>
<PAGE>
<PAGE>
TENNECO CREDIT CORPORATION
AND CONSOLIDATED SUBSIDIARIES
BALANCE SHEETS
(Unaudited)
LIABILITIES AND STOCKHOLDER'S EQUITY
<TABLE>
<CAPTION>
(Thousands Except Share Amounts)
September 30, December 31, September 30,
1995 1994 1994
_____________ ____________ ____________
<S> <C> <C> <C>
Commercial paper................................. $ 156,883 $ - $ -
Short-term bank note payable..................... 100,000 - -
Senior notes, including $4,205, $238,576 and
$237,355 due within one year at the
respective dates................................ 617,701 852,008 853,336
Subordinated notes............................... 92,100 92,100 92,100
Accounts payable to affiliates................... 37,699 7,834 7,082
Accrued interest................................. 15,592 24,613 18,188
Deferred income taxes............................ 14,102 14,304 16,690
__________ __________ __________
1,034,077 990,859 987,396
__________ __________ __________
Stockholder's equity:
Common stock, par value $5 per share, autho-
rized, issued and outstanding 200 shares...... 1 1 1
Capital surplus................................ 154,091 185,228 185,228
Retained earnings.............................. 54,876 339,968 332,821
__________ __________ __________
208,968 525,197 518,050
__________ __________ __________
$1,243,045 $1,516,056 $1,505,446
</TABLE>
(The accompanying notes to financial statements are an
integral part of these balance sheets.)
5<PAGE>
<PAGE>
TENNECO CREDIT CORPORATION
AND CONSOLIDATED SUBSIDIARIES
STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY
(Unaudited)
<TABLE>
<CAPTION>
(Thousands)
Nine Months Ended
September 30,
____________________
1995 1994
________ ________
<S> <C> <C>
COMMON STOCK:
Balance beginning and end of period................... $ 1 $ 1
________ ________
CAPITAL SURPLUS:
Balance beginning of period........................... 185,228 185,228
Capital distribution to affiliate.................. (31,137) -
________ ________
Balance end of period................................. 154,091 185,228
________ ________
RETAINED EARNINGS:
Balance beginning of period........................... 339,968 298,573
Net income......................................... 14,908 34,248
Dividends.......................................... (300,000) -
________ ________
Balance end of period................................. 54,876 332,821
________ ________
Total.............................................. $208,968 $518,050
</TABLE>
(The accompanying notes to financial statements are an
integral part of these statements of changes in stockholder's equity.)
6<PAGE>
<PAGE>
TENNECO CREDIT CORPORATION
AND CONSOLIDATED SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
(1) In the opinion of Tenneco Credit Corporation, the accompanying
unaudited financial statements of Tenneco Credit Corporation and
its consolidated subsidiaries (the "Company") contain all
adjustments (consisting of only normal recurring accruals)
necessary to present fairly the financial position as of
September 30, 1995, and the results of operations; changes in
stockholder's equity; and cash flows for the periods indicated.
(2) Certain reclassifications have been made to prior period amounts,
where appropriate, to conform with the current period
presentation.
(3) In June 1994, Tenneco Inc. and its consolidated subsidiaries
("Tenneco") completed an initial public offering of approximately
29% of the common stock of Case Corporation ("Case"), the holder
of Tenneco's farm and construction equipment segment (the "Case
Business"). In November 1994, a secondary offering of Case's
common stock reduced Tenneco's ownership to approximately 44%. On
August 9, 1995, Tenneco sold in a secondary public offering an
additional 16.1 million shares of common stock of Case, further
reducing Tenneco's ownership interest in Case to approximately
21%.
In connection with the initial public offering, Tenneco
transferred all of its Case Business assets to Case, except for
$1.2 billion of existing United States retail receivables, which
were retained by the Company. Case will service the retail
receivables retained by the Company for which the Company will pay
a servicing fee equal to two percent per annum of the average
amount outstanding during each month. It is estimated that by
1999 substantially all of the farm and construction equipment
receivables retained by the Company will be liquidated. At
September 30, 1995, $590 million of retail receivables related to
Case remained outstanding. As a result of the transactions
described above, the future activities and income of the Company
will be substantially reduced.
(4) Tenneco International Holding Corp. ("TIHC"), an indirect
subsidiary of Tenneco Inc., has arranged a $50 million committed
line of credit with the Company to provide short-term financing
which provides for borrowings at various rates. At September 30,
1995, the Company had made loans of $25 million to TIHC related to
this line of credit.
(5) In July 1995, the Company purchased the Case Corporation 10 1/2%
Subordinated Note at fair market value from Tenneco Inc., its
parent, for $310.8 million in cash. The Company recorded this
receivable at Tenneco Inc.'s historical cost of $279.7 million.
The $31.1 million premium paid on the note is included in the
Statement of Changes in Stockholder's Equity caption "Capital
distribution to affiliate." Interest on the note is accreted into
the principal balance until June 1996, after which it is paid in<PAGE>
cash. At September 30, 1995, the note receivable balance,
including accreted interest, totaled $284.8 million.
7<PAGE>
<PAGE>
TENNECO CREDIT CORPORATION
AND CONSOLIDATED SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS--(Continued)
(Unaudited)
(6) In July 1995, the Company entered the commercial paper market to
provide additional financing. On September 29, 1995, the Company
issued a 7-day $100 million note at 7.8125% to the Bank of America
Illinois for short-term financing. This note was repaid on
October 6, 1995.<PAGE>
(The above notes are an integral part of the foregoing
financial statements.)
8<PAGE>
<PAGE>
TENNECO CREDIT CORPORATION
AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Third Quarter Results
Revenues
The Company reported total revenues of $31.6 million for the third
quarter of 1995, down $6.2 million from the third quarter of 1994.
The following sets forth the percentage of revenues from the various
sources:
<TABLE>
<CAPTION>
Revenues
__________________
Three Months Ended
September 30,
__________________
1995 1994
____ ____
<S> <C> <C>
Case............................... 43% 64%
Pipeline........................... 15 11
Packaging.......................... 9 8
Automotive......................... 10 8
Other.............................. 1 3
Total from accounts receivable.. 78 94
Rental............................. 4 4
Notes receivable................... 18 2
100% 100%
</TABLE>
The average yield on Case retail receivables for the third quarter
of 1995 was 10.4%, unchanged from the third quarter of 1994. The
discount rate charged on pipeline and other short-term receivables
ranged from 9.0% to 9.25% during the third quarter of 1995 versus a
range of 7.5% to 8.0% during the third quarter of 1994.
The Company's only leasing activity is the multifuel boiler facility
leased to Tenneco Packaging Inc., an affiliate of the Company.
Leasing activities provided $1.4 million of revenues in the three
months ended September 30, 1995 and 1994.
Interest income from notes receivable increased $5.0 million in the
third quarter of 1995 compared to the same period in 1994 primarily
due the purchase of the Case Corporation note from Tenneco Inc. (See
Note 5 to financial statements for additional information).
Under an Investment Agreement dated June 15, 1988, between the
Company and Tenneco Inc. (the "Investment Agreement"), the Company is
to receive a service charge from Tenneco Inc. for each month equal to
the amount, if any, by which the cumulative earnings of the Company
for the period from the beginning of the calendar year to the end of
such month, before deduction of fixed charges and federal income
taxes, are less than 125% of the Company's fixed charges. A service<PAGE>
charge of $234,000 was paid by Tenneco Inc. for the month of January
1994. No service charge was required for the months prior or
subsequent to January 1994.
Subsequent to the Case reorganization and initial public offering
(See Note 3 to financial statements for additional information), the
Case retail financing activities have been conducted by Case's United
9<PAGE>
<PAGE>
States finance subsidiary. As the Company no longer purchases Case
retail receivables, future revenues and income will continue to
decline as the remaining Case retail receivables are collected.
Expenses
Interest expense totaled $21.9 million for the third quarter of
1995, a decrease of $4.5 million or 17% over the third quarter of
1994. This decrease resulted from lower levels of long-term and
short-term debt. The average interest rate for the third quarter of
1995 was 9.0% compared to 9.7% for the third quarter of 1994.
Operating and administrative expenses decreased $5.1 million primarily
due to lower fees paid to Case to service Case U.S. retail notes
receivable retained by the Company in the Case reorganization (See
Note 3 to financial statements for additional information).
Other Income
The Company recognized a gain from the sales of trade receivables
originated by Tenneco's packaging, automotive and energy subsidiaries
to Asset Securitization Cooperative Corporation in the third quarter
of 1995. Other income for the same period in 1994 was primarily due
to a gain on the sale of dealer owned rental yard receivables to Case.
Net Income
Net income for the third quarter of 1995 was $4.4 million, a
decrease of $3.7 million or 45% compared with the third quarter of
1994. The decrease is attributable to lower revenues offset by
decreased expenses and income taxes.
Assets
The Company had total assets of $1,243.0 million at September 30,
1995, as compared to $1,516.1 million at December 31, 1994, and
$1,505.4 million at September 30, 1994. The 17% reduction of total
assets at September 30, 1995 versus September 30, 1994, was primarily
due to the continuing liquidation of the Case retail notes receivable
offset by the purchase of the Case Corporation note (See Note 3 and
Note 5, respectively, to financial statements for additional
information).
As of September 30, 1995, the Company held net trade notes and
accounts receivable totaling $845.0 million, which accounted for 68%
of the Company's total assets. This compares to $1,379.5 million and
$1,365.8 million or 91% of the total assets as of December 31, 1994
and September 30, 1994, respectively. Details of these receivables
are shown as follows:
<TABLE>
<CAPTION>
Net Trade Notes and Accounts
Receivable
________________________________________
September 30, December 31, September 30,
1995 1994 1994
_____________ ____________ _____________
<S> <C> <C> <C>
Case................ 60% 53% 63%<PAGE>
Pipeline............ 18 19 14
Packaging........... 9 15 12
Automotive.......... 13 13 11
100% 100% 100%
</TABLE>
10<PAGE>
<PAGE>
Case net trade notes and accounts receivable are $234.6 million and
$356.0 million lower at September 30, 1995, compared to December 31,
1994 and September 30, 1994, respectively, due to the continuing
liquidation of the Case retail notes receivable.
The Company purchased the Case Corporation 10 1/2% Subordinated Note
from its parent, Tenneco Inc., in July 1995. The note receivable was
recorded at historical cost (See Note 5 to financial statements for
additional information). Interest on the note is accreted into the
principal balance until June 1996, after which it is paid in cash. At
September 30, 1995, the note receivable balance, including accreted
interest, totaled $284.8 million or 23% of the Company's total assets.
The Company held $23.2 million of notes receivable from non-
affiliated companies at September 30, 1995, down from the $67.2
million and $71.1 million held at December 31, 1994 and September 30,
1994, respectively. The decrease from December 31, 1994, was due to
the pre-payment of a long-term note from a third party. Long-term
receivables from non-affiliated companies represented 2% of the
Company's total assets at September 30, 1995.
As of September 30, 1995, the Company had a net recorded investment
of $49.9 million in a multifuel boiler leased to Tenneco Packaging
Inc. The leased facility represented 4% of the Company's total assets
at September 30, 1995.
Capitalization and Capital Resources
Pursuant to the Investment Agreement, Tenneco Inc. is required to
maintain an investment in the Company as necessary to assure that at
all times the sum of the Company's subordinated debt plus
stockholder's equity will be at least equal to 20% of the Company's
total debt plus stockholder's equity.
The Company's capital requirements have been financed through the
issuance of commercial paper, short-term bank notes, publicly and
privately placed medium-term notes, senior public debt and bank loans,
subordinated debt, and advances and equity capital from Tenneco Inc.,
plus earnings retained in the business.
The Company's total capitalization was $1,175.7 million, $1,469.3
million and $1,463.5 million at September 30, 1995, December 31, 1994
and September 30, 1994, respectively. The components of
capitalization at such dates are set forth in the following table:
<TABLE>
<CAPTION>
Capitalization
________________________________________
September 30, December 31, September 30,
1995 1994 1994
_____________ ____________ _____________
<S> <C> <C> <C>
Commercial paper........ 13% -% -%
Short-term bank notes... 9 - -
Medium-term senior debt. 3 5 5
Long-term senior debt... 49 53 53
Subordinated debt....... 8 6 6
Stockholder's equity.... 18 36 36 <PAGE>
100% 100% 100%
</TABLE>
Stockholder's equity decreased primarily due to a $300 million dividend paid
to Tenneco Inc. in June 1995.
11<PAGE>
<PAGE>
Nine Month Results
Revenues
For the first nine months of 1995, revenues totaled $101.8 million,
down 18% from the $123.8 million reported for the same period in 1994.
This reduction is attributable to lower average Case retail receivable
balances.
On a percentage basis, revenues for the indicated nine-month periods
were generated from the following:
<TABLE>
<CAPTION>
Revenues
_________________
Nine Months Ended
September 30,
_________________
1995 1994
____ ____
<S> <C> <C>
Case................................... 46% 70%
Pipeline............................... 14 10
Packaging.............................. 12 6
Automotive............................. 11 5
Other.................................. 6 2
Total from accounts receivable...... 89 93
Rental................................. 4 3
Notes receivable....................... 7 4
100% 100%
</TABLE>
Discount rates on short-term accounts receivable during the first
nine months of 1995 ranged from 8.75% to 9.25% as compared to a range
of 5.75% to 8.0% for the first nine months of 1994. The average yield
on Case retail receivables for the nine-month period increased to
10.4% in 1995 from 10.1% in 1994.
Expenses
Interest expense for the nine months ended September 30, 1995, was
$67.0 million versus $93.8 million for the same period in 1994. The
$26.8 million decrease was due to lower levels of long-term and short-
term debt for the first nine months of 1995. Operating and
administrative expense increased $2.7 million in 1995 as compared to
the same period in 1994 primarily due to fees paid to Case to service
Case U.S. retail notes receivable retained by the Company in the Case
reorganization (See Note 3 to financial statements for additional
information). Prior to the Case reorganization in June 1994, the
Company did not pay such servicing fees to Case.
Other Income
Other income for the nine months ended September 30, 1995, was down
$34.6 million from the same period in 1994. Other income for 1994 was
primarily attributable to the pre-tax gain on the sale of certain farm
and construction equipment receivables to limited purpose business<PAGE>
trusts and a gain on the sale of dealer owned rental yard receivables
to Case.
12<PAGE>
<PAGE>
Net Income
Net income for the first nine months of 1995 was $14.9 million, a
decrease of $19.3 million from net income of $34.2 million for the
1994 period. See discussion in "Revenues" and "Net Income" under
Third Quarter Results.
PART II--OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
12--Computation of Ratio of Earnings to Fixed Charges
27--Financial Data Schedule
(b) Reports on Form 8-K. Tenneco Credit Corporation did not file
any reports on Form 8-K during the quarter ended September 30, 1995.
13<PAGE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
TENNECO CREDIT CORPORATION
Date: November 14, 1995 By ROBERT T. BLAKELY
Robert T. Blakely
President
Date: November 14, 1995 By MARK A. McCOLLUM
Mark A. McCollum
Principal Financial and
Accounting Officer
14<PAGE>
<PAGE>
EXHIBIT 12
<TABLE>
<CAPTION>
TENNECO CREDIT CORPORATION
AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS
TO FIXED CHARGES
(Unaudited)
(Thousands)
Nine Months Ended
September 30,
1995 1994
<S> <C> <C>
Net income................................ $ 14,908 $ 34,248
Add:
Interest expense....................... 66,959 93,773
Income taxes........................... 9,646 22,830
Earnings as defined................. $ 91,513 $150,851
Fixed charges--interest expense............ $ 66,959 $ 93,773
Ratio of earnings to fixed charges........ 1.37 1.61
/TABLE
<PAGE>
<PAGE>
EXHIBIT 27
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM TENNECO CREDIT CORPORATION AND CONSOLIDATED
SUBSIDIARIES FINANCIAL STATEMENTS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS
TENNECO CREDIT CORPORATION AND CONSOLIDATED SUBSIDIARIES
FINANCIAL DATA SCHEDULE
<TABLE>
<CAPTION>
(Thousands)
As of September 30,
1995 and for
the nine
months then
ended
<S> <C>
CASH AND CASH ITEMS........................................... $67
MARKETABLE SECURITIES......................................... 0
NOTES AND ACCOUNTS RECEIVABLE--TRADE........................... 853,718
ALLOWANCES FOR DOUBTFUL ACCOUNTS.............................. (8,713)
INVENTORY..................................................... 0
TOTAL CURRENT ASSETS.......................................... 0
PROPERTY, PLANT AND EQUIPMENT................................. 69,606
ACCUMULATED DEPRECIATION...................................... (19,737)
TOTAL ASSETS.................................................. 1,243,045
TOTAL CURRENT LIABILITIES..................................... 0
BONDS, MORTGAGES AND SIMILAR DEBT............................. 966,684
PREFERRED STOCK--MANDATORY REDEMPTION.......................... 0
PREFERRED STOCK--NO MANDATORY REDEMPTION....................... 0
COMMON STOCK.................................................. 1
OTHER STOCKHOLDER'S EQUITY.................................... 208,967
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY.................... 1,243,045
NET SALES OF TANGIBLE PRODUCTS................................ 0
TOTAL REVENUES................................................ 101,838
COST OF TANGIBLE GOODS SOLD................................... 0
TOTAL COSTS AND EXPENSES APPLICABLE TO SALES AND REVENUES..... 0
OTHER COSTS AND EXPENSES...................................... 78,227
PROVISION FOR DOUBTFUL ACCOUNTS AND NOTES..................... 0
INTEREST AND AMORTIZATION OF DEBT DISCOUNT.................... 66,959
INCOME BEFORE TAXES AND OTHER ITEMS........................... 24,554
INCOME TAX EXPENSE............................................ 9,646
INCOME/LOSS CONTINUING OPERATIONS............................. 14,908
DISCONTINUED OPERATIONS....................................... 0
EXTRAORDINARY ITEMS........................................... 0
CUMULATIVE EFFECT--CHANGES IN ACCOUNTING PRINCIPLES............ 0
NET INCOME OR LOSS............................................ $14,908
EARNINGS PER SHARE--PRIMARY.................................... 0
EARNINGS PER SHARE--DILUTED.................................... 0
/TABLE
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT
12
TENNECO CREDIT CORPORATION
AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS
TO FIXED CHARGES
(Unaudited)
(Thousands)
Nine Months Ended
September 30,
1995 1994
<S> <C> <C>
Net income................................ $ 14,908 $ 34,248
Add:
Interest expense....................... 66,959 93,773
Income taxes........................... 9,646 22,830
Earnings as defined................. $ 91,513 $150,851
Fixed charges--interest expense........... $ 66,959 $ 93,773
Ratio of earnings to fixed charges........ 1.37 1.61
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM TENNECO
CREDIT CORPORATION AND CONSOLIDATED SUBSIDIARIES FINANCIAL STATEMENTS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> $67
<SECURITIES> 0
<RECEIVABLES> 853,718
<ALLOWANCES> (8,713)
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 69,606
<DEPRECIATION> (19,737)
<TOTAL-ASSETS> 1,243,045
<CURRENT-LIABILITIES> 0
<BONDS> 966,684
<COMMON> 1
0
0
<OTHER-SE> 208,967
<TOTAL-LIABILITY-AND-EQUITY> 1,243,045
<SALES> 0
<TOTAL-REVENUES> 101,838
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 78,227
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 66,959
<INCOME-PRETAX> 24,554
<INCOME-TAX> 9,646
<INCOME-CONTINUING> 14,908
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> $14,908
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
