<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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, 1995
OR
[_] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
FOR THE TRANSITION PERIOD FROM TO
COMMISSION FILE NUMBER 1-9864...................................................
A. Full title of the plan and the address of the plan, if different from that
of the issuer named below:
TENNECO INC. 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>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Tenneco Benefits Committee
of the Tenneco Inc. Thrift Plan:
We have audited the accompanying statements of net assets available for plan
benefits of the Tenneco Inc. Thrift Plan as of December 31, 1995 and 1994, and
the related statements of changes in net assets available for plan benefits for
the years then ended. These financial statements and the schedules referred to
below are the responsibility of the Tenneco Benefits Committee. Our
responsibility is to express an opinion on these financial statements and
schedules based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Tenneco
Inc. Thrift Plan as of December 31, 1995 and 1994, and the changes in net assets
available for plan benefits for the years then ended in conformity with
generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets held
for investment purposes as of December 31, 1995, included as Schedule I, and
reportable transactions for the year ended December 31, 1995, included as
Schedule II, 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
April 29, 1996
<PAGE>
TENNECO INC. THRIFT PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1995 AND 1994
<TABLE>
<CAPTION>
1995 1994
------------------------------------------ ---------------------------------------
Shares Cost Market Value Shares Cost Market Value
--------- ------------- ---------------- --------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments-
Corporate securities-
Tenneco Inc. common stock 7,332,492 $331,392,250 $ 363,874,916 6,960,534 $311,316,767 $295,822,695
Tenneco Inc. preferred stock -- -- -- 843 53,045 83,668
Registered investment companies-
Capstone Growth Fund, Inc. 2,283,231 29,993,103 31,531,420 2,331,127 30,615,502 29,045,842
Fidelity U.S. Equity Index Portfolio 1,437,115 24,935,106 32,420,246 1,354,866 22,237,362 22,910,784
Fidelity Growth Company Fund 2,388,589 71,105,240 86,689,043 2,450,472 69,108,109 66,799,867
Fidelity U.S. Bond Index Portfolio 1,571,333 16,899,764 17,211,429 1,348,954 14,600,932 13,449,071
------------ -------------- ------------ ------------
142,933,213 167,852,138 136,561,905 132,205,564
U.S. Treasury notes 236,829,852 238,545,135 243,433,121 235,507,297
BASIC agreement on U.S. Treasury notes 305,139 (1,410,145) 637,896 8,563,720
Time deposits 227,090,114 227,090,114 170,403,728 170,403,728
Cash surrender value of life insurance
policies -- 86,486 -- 88,349
Participant loans receivable -- 27,349,098 -- 27,619,916
------------- -------------- ------------- ------------
Total investments $938,550,568 1,023,387,742 $862,406,462 870,294,937
============ ============
Receivables-
Employees' contributions 1,040,322 1,015,815
Employers' contributions 948,894 931,072
Due from Trustee for liquidated
securities -- 6,000,000
Accrued interest 3,867,269 4,565,864
-------------- ------------
5,856,485 12,512,751
Cash 355,550 529,903
-------------- ------------
Total assets 1,029,599,777 883,337,591
LIABILITIES:
Due to Trustee for purchased securities 154,758 115,049
-------------- ------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS $1,029,445,019 $883,222,542
============== ============
</TABLE>
The accompanying notes to financial statements are an integral part of these
financial statements.
<PAGE>
TENNECO INC. THRIFT PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 1995 AND 1994
<TABLE>
<CAPTION>
1995 1994
--------------- ----------------
<S> <C> <C>
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
beginning of year $ 883,222,542 $1,187,519,711
-------------- --------------
ADD:
Dividends-
Tenneco Inc. 11,399,437 9,997,205
Registered investment companies 10,146,008 5,372,629
Interest 24,437,665 21,934,975
-------------- --------------
45,983,110 37,304,809
Net appreciation (depreciation) in fair
value of investments 85,731,035 (70,757,525)
-------------- --------------
Net investment income (loss) 131,714,145 (33,452,716)
Contributions-
Employees 46,974,066 50,607,392
Employers 44,180,868 47,539,778
-------------- --------------
91,154,934 98,147,170
Repayment of loan interest 1,917,000 2,203,350
Litigation settlement -- 1,998,468
Transfer from EnTrade Corporation
401(k) Retirement Savings Plan -- 396,369
--------------- --------------
Total additions 224,786,079 69,292,641
-------------- --------------
DEDUCT:
Withdrawals-
Terminated participants-
Cash 48,222,971 122,086,714
Securities 7,561,932 7,593,863
-------------- --------------
55,784,903 129,680,577
-------------- --------------
Active participants-
Cash 8,131,839 14,175,007
Securities 1,142,086 484,621
-------------- --------------
9,273,925 14,659,628
-------------- --------------
Administrative expenses 647,744 723,242
Transfer to Case Corporation Savings
Plan -- 228,526,363
Transfer to Albright & Wilson Savings
Plan 12,857,030 --
-------------- ---------------
Total deductions 78,563,602 373,589,810
-------------- --------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
end of year $1,029,445,019 $ 883,222,542
============== ==============
</TABLE>
The accompanying notes to financial statements are an integral part of these
financial statements.
<PAGE>
TENNECO INC. THRIFT PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995 AND 1994
1. DESCRIPTION OF THE THRIFT PLAN:
The Tenneco Inc. Thrift Plan (the Thrift Plan) covers the eligible employees of
Tenneco Inc. and its subsidiary companies (the Employers) which have adopted the
Thrift Plan. The Thrift Plan is administered by the Tenneco Benefits Committee
(the Committee). NationsBank (the Trustee) is the Trustee of the Thrift Plan
Trust (the Trust).
Vesting
All participants are 100 percent vested in their entire account balance in the
Thrift Plan, including company matching contributions, unless their employment
terminated prior to January 1, 1987.
2. SUMMARY OF ACCOUNTING POLICIES:
Basis of Accounting
The financial statements of the Thrift Plan are presented on the accrual basis
of accounting. The investments of the Thrift Plan are reported at quoted market
value except for the BASIC agreement on U.S. Treasury notes whose market value
is based upon the difference between the quoted market value of the U.S.
Treasury notes and the amortized cost of the related securities. The
investments held under the Thrift Plan are recorded in the individual
participant's accounts at cost.
Earnings
Individual participants' accounts are credited with an allocation of investment
earnings. Allocations are based on the proportion that each participant's
investment cost basis account balance bears to the total of all participant
investment cost basis account balances.
Expenses
All administrative expenses, including the Trustee's fees, are paid from
earnings from the Trust attributable to unallocated amounts or by the Employers.
Such expenses may also be paid from the Trust in the event the Employers'
payments and such earnings are insufficient to meet such expenses. Brokerage
fees, transfer taxes, individual income taxes and all other charges and expenses
resulting from purchases or sales of securities are charged to the accounts of
the participants requesting the transaction. An additional transaction fee is
charged to an individual participant's account for processing investment
purchases or sales over $100 and new loans. In all other cases, including any
situation where the allocation of the charge to a participant within a
particular investment option is undeterminable, expenses are charged
proportionately against all the accounts within that investment option. Any
other expenses chargeable against the entire Trust are charged to each
individual account in the proportion that such account bears to the total amount
of the Trust.
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.
<PAGE>
2
3. CONTRIBUTIONS:
Eligible employees electing to participate in the Thrift Plan may make salary
deferral contributions by payroll deduction of not less than 4 percent nor
greater than 8 percent of their base salary, with such contributions limited to
$9,240 for 1995 and 1994. If a participant suspends contributions, then, with
certain limited exceptions, such suspension must continue for a one-year period.
The Employers contribute on behalf of the participant an amount up to the
participant's contribution according to the following percentages of the
participant's base salary, based on the number of years of participation in the
Thrift Plan: 4 percent--through three years; 5 percent--over three through five
years; 6 percent--over five through seven years; and 8 percent--over seven
years. The participant immediately vests in Employer contributions. Normally,
the salary deferral and Employers' contributions are paid each pay period to the
Trustee.
Effective January 1, 1993, Employer contributions are made in the form of
Tenneco Inc. common stock and are funded by the Tenneco Inc. Stock Employee
Compensation Trust. Employer contributions and the related earnings made after
January 1, 1993, must remain in the form of Tenneco Inc. common stock until the
participant reaches age 55 or terminates employment and requests a total plan
distribution.
The participating employees' and Employers' contributions for the years ended
December 31, 1995 and 1994, are summarized below:
<TABLE>
<CAPTION>
1995 1994
---------------------------- ----------------------------
Employees' Employers' Employees' Employers'
Contributions Contributions Contributions Contributions
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Albright & Wilson Americas Inc. $ 186,784 $ 162,406 $ 843,677 $ 733,719
Asheville Industries Inc. -- -- 96,578 89,513
Case Corporation -- -- 4,688,758 4,387,486
Channel Industries Gas Company 271,867 264,111 208,258 205,879
Chemrich Inc. 5,072 4,360 35,657 30,675
East Tennessee Natural Gas Company 324,499 318,220 321,899 312,774
Greenville Industries, Inc. -- -- 59,613 59,605
Martin Exploration Company -- -- 1,558 1,558
Midwestern Gas Transmission Company 156,745 156,745 160,489 160,618
Monroe Auto Equipment Company 2,491,977 2,281,632 2,427,764 2,189,270
Newport News Shipbuilding and Dry Dock
Company 20,475,446 19,901,579 20,139,418 19,504,398
Newport News Industrial Corporation 103,439 99,990 94,435 90,367
Newport News Reactor Services, Inc. 244,382 223,876 23,140 21,563
Tenneco Packaging Inc. 8,143,684 7,302,845 7,359,363 6,637,830
Rio Linda Chemical Company 22,695 18,986 106,024 84,690
Tenneco Automotive 522,445 478,244 629,900 566,491
Tenneco Energy Resources Corporation 97,884 80,004 85,775 68,076
Tenneco Energy Inc. 1,636,698 1,446,691 1,339,138 1,213,672
Tenneco Gas Marketing Company 372,133 300,547 467,268 382,541
Tennessee Gas Pipeline Company 6,271,333 5,971,594 6,066,828 5,770,687
Tenneco Management Company 2,157,234 1,976,748 1,909,870 1,746,761
TennEcon Services, Inc. 961,683 862,397 996,322 925,233
Walker Manufacturing Company 2,528,066 2,329,893 2,545,660 2,356,372
----------- ----------- ----------- -----------
$46,974,066 $44,180,868 $50,607,392 $47,539,778
=========== =========== =========== ===========
</TABLE>
<PAGE>
3
4. INVESTMENT OPTIONS:
Participants must invest contributions and other cash amounts credited to their
accounts in one or more of the following:
Investment Option A--Tenneco Inc. common stock, par value $5 per share.
Investment Option B--Fidelity U.S. Equity Index Portfolio--Shares in an index
fund that attempts to follow the S&P 500 index.
Investment Option C--Fidelity Growth Company Fund--Shares in a growth-
oriented common stock mutual fund.
Investment Option D--Capstone Growth Fund, Inc. (formally U.S. Trend Fund,
Inc.)--Shares in a growth-oriented common stock mutual fund that focuses on
long-term capital appreciation and current income.
Investment Option E--Fidelity U.S. Bond Index Portfolio--Shares in an index
fund that attempts to follow the Lehman Brothers Aggregate Bond Index.
Investment Option F--Time Deposits--Interest-bearing deposits in banks and
similar institutions supervised by the United States or state regulatory
agencies and selected by the Committee. The Committee may select a bank which
is a Thrift Plan fiduciary, providing a reasonable rate of interest is paid.
Effective November 24, 1993, the Thrift Plan entered into the Benefit
Accessible Securities Investment Contract (BASIC) Master Agreement (BASIC
Agreement) with Bankers Trust (Delaware) in order to increase the rate of
return of the Investment Option F--Time Deposits. Under the BASIC Agreement,
a portion of the monies previously invested in time deposits is invested in
United States Treasury securities (the Securities) with original maturities
ranging from approximately 11 months to 37 months. The BASIC Agreement
provides that, in the event of liquidation required to pay withdrawals, the
Securities will be sold to Bankers Trust at face value adjusted for any
unamortized premium/discount and BASIC Agreement fee. As a result, the Thrift
Plan is protected from declines in the market value of the Securities and
relinquishes the benefits of appreciation in their market value. As
consideration for the BASIC Agreement, the Thrift Plan is required to pay an
initial fee to Bankers Trust; such fee is being amortized over the term of
the Securities. As of December 31, 1995 and 1994, the BASIC Agreement had an
amortized cost of $305,139 and $637,896 and a market value of $(1,410,145)
and $8,563,720, respectively.
See Exhibits I and II.
5. WITHDRAWALS AND PLAN LOANS:
A participant with at least five years of participation in the Thrift Plan may
request an in-service withdrawal. A participant may elect to withdraw all or
part of his account balance reduced, if he has not attained age 59-1/2, by the
portion of his account balance attributable to salary deferral contributions
credited to such account. Plan equity as of December 31, 1995 and 1994,
includes amounts pending distribution to participants of $2,142,638 and
$722,000, respectively. Amounts pending distribution to terminated participants
at December 31, 1994, were not presented as a liability on the Form 5500 for the
year ended December 31, 1994.
<PAGE>
4
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.
<TABLE>
<CAPTION>
December 31,
1995
----------------
<S> <C>
Net assets available for plan benefits
per the financial statements $1,029,445,019
Less- Amounts allocated to withdrawing
participants (2,142,638)
--------------
Net assets available for plan benefits
per the Form 5500 $1,027,302,381
==============
</TABLE>
The following is a reconciliation of benefits paid to participants per the
financial statements to the Form 5500.
<TABLE>
<CAPTION>
Year Ended
December 31,
1995
--------------
<S> <C>
Benefits paid to participants per the
financial statements $ 65,058,828
Add- Amounts allocated to withdrawing
participants at December 31, 1995 2,142,638
--------------
Benefits paid to participants per the
Form 5500 $ 67,201,466
</TABLE> ==============
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.
Active participants and certain other individuals who have not had a plan loan
during the previous 12 months may obtain a plan loan with a term not to exceed
54 months from the cash funds in his account. The borrower may have only one
plan loan outstanding at any time, and the amount of the loan may not be less
than $1,000 and shall not exceed the least of (a) $50,000, (b) one-half the
borrower's account balance or (c) an amount the repayment of which (together
with interest) in equal monthly installments equals 10 percent of the borrower's
monthly base compensation (or 10 percent of the borrower's monthly income in the
case of a nonemployee borrower). The loan interest rate is equal to the highest
share-secured loan interest rate charged by the Tenneco Inc. Federal Credit
Union. The average loan interest rate was 7.38 percent and 7.10 percent during
1995 and 1994, respectively. Loan principal and interest repayments are made
through irrevocable semimonthly payments. Termination of employment may
accelerate the maturity of the loan, and failure to make any loan repayment on
time shall generally constitute default. In the event of default, the Committee
will treat the outstanding loan balance as a distribution to the participant
under the Thrift Plan and thereby reduce the participant's interest in the
Thrift Plan.
6. FEDERAL INCOME TAXES:
The Thrift Plan obtained its latest determination letter on September 16, 1994,
in which the Internal Revenue Service stated that the Thrift Plan, as then
designed, was in compliance with the applicable requirements of the Internal
Revenue Code. The Thrift Plan has been amended since receiving the
determination letter. However, the Plan administrator and the Thrift Plan's
legal counsel believe that the Thrift Plan is currently designed and being
operated in compliance with the applicable requirements of the Internal Revenue
Code. Therefore, they believe that the Thrift Plan was qualified and the
related trust was tax-exempt as of the financial statement date.
<PAGE>
5
A participant is not subject to federal income tax on matching Employer
contributions, salary deferral contributions or earnings on such participant's
account balance until distributed.
7. PAYABLE TO/RECEIVABLE FROM
TRUSTEE FOR SECURITIES:
Securities are purchased or sold by the Trustee in anticipation of the
transaction requirements of the Thrift Plan participants. The amount payable to
the Trustee of $154,758 and $115,049 at December 31, 1995 and 1994,
respectively, represents the cost of securities which were purchased by the
Trustee as of such date in accordance with the terms of the Thrift Plan over the
amount of securities required by the Thrift Plan. At December 31, 1994, the
Thrift Plan recorded a receivable from the Trustee for liquidated securities of
$6,000,000 which represents the maturity of U.S. Treasury notes on December 31,
1994.
8. TRANSFER TO CASE
CORPORATION SAVINGS PLAN:
In June 1994, Tenneco Inc. completed an initial public offering of approximately
29 percent of the common stock of Case Corporation (Case). In conjunction with
the initial public offering, the participation of Case employees in the Thrift
Plan ceased as of June 30, 1994. The Case Corporation Savings Plan (Case Plan)
was established for Case employees, and all Case employees' account balances in
the Thrift Plan were transferred to the Case Plan. Such transfer totaled
$228,526,363.
9. TRANSFER FROM ENTRADE
401(k) RETIREMENT SAVINGS PLAN:
In December 1992, Tenneco Inc. purchased EnTrade Corporation. In conjunction
with the purchase, activity in the EnTrade Corporation 401(k) Retirement Savings
Plan (EnTrade Plan) was frozen and the participants were allowed to participate
in the Thrift Plan in January 1993. In July 1994, the undistributed assets of
$396,369 from the EnTrade Plan were transferred to the Thrift Plan.
10. LITIGATION SETTLEMENT:
During 1991, Tenneco Inc. settled various class action lawsuits against Tenneco
Inc. and certain officers and directors on behalf of purchasers of Tenneco
Inc.'s common stock during the period April 2, 1990, to December 31, 1991. In
1994, the Thrift Plan participants who held Tenneco Inc. common stock as an
investment option during the affected period received final settlement in the
amount of $1,998,468.
11. TRANSFER TO ALBRIGHT &
WILSON SAVINGS PLAN:
In December 1994, Tenneco Inc. announced its intent to offer 100 percent of its
Albright & Wilson (A&W) chemical segment in an underwritten public offering.
The offering, in the form of a floatation in the United Kingdom, was completed
in the first quarter of 1995. In conjunction with the public offering, the
participation of A&W employees in the Thrift Plan ceased and their Thrift Plan
account balances totaling $12,857,030 were transferred to a new plan established
by the new public entity.
<PAGE>
6
12. 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.
13. SUBSEQUENT EVENT:
In March 1996, Tenneco Inc. announced that it intends to spin off Newport News
Shipbuilding and Dry Dock Company to its shareholders in a tax-free transaction
and that it was developing strategic options to separate Tenneco Energy from its
packaging and automotive parts divisions and to maximize shareowner value
through a tax-free spinoff, a sale, strategic alliance or other action. On June
19, 1996, Tenneco Inc. announced a definitive agreement for the acquisition of
Tenneco Energy by El Paso Energy Corporation. The spinoffs of Newport News
Shipbuilding and Dry Dock Company and Tenneco Inc.'s combined packaging and
automotive parts business as well as the merger of Tenneco Energy with a
subsidiary of El Paso Energy Corporation are targeted to be completed late in
1996 but remain subject to a number of conditions, including the receipt of a
favorable ruling from the Internal Revenue Service on the tax-free nature of the
proposed transaction and a favorable Tenneco Inc. shareholder vote on the
spinoffs and merger.
Tenneco Inc. is currently unable to predict the timing or the ultimate impact
that these recent developments will have on the Thrift Plan.
<PAGE>
EXHIBIT 1
TENNECO INC. THRIFT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS BY INVESTMENT OPTION
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Participant-Directed Investment
---------------------------------------------------------------------------------------------------
Option A Option B Option C Option D Option E Option F
-------------------- --------------- ------------- ------------- ------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at market
value-
Corporate securities-
Tenneco Inc. common stock $233,515,424 $ - $ - $ - $ - $ -
Registered investment
companies-
Capstone Growth Fund,
Inc. - - - 31,531,420 - -
Fidelity U.S. Equity
Index Portfolio - 32,420,246 - - - -
Fidelity Growth Company
Fund - - 86,689,043 - - -
Fidelity U.S. Bond Index
Portfolio - - - - 17,211,429 -
------------ --------------- ------------- ------------- ----------- --------------
- 32,420,246 86,689,043 31,531,420 17,211,429 -
U.S. Treasury notes - - - - - 238,545,135
BASIC agreement on U.S.
Treasury notes - - - - - (1,410,145)
Time deposits - - - - - 227,090,114
Cash surrender value of
life insurance policies - - - - - -
Participant loans
receivable - - - - - -
------------ --------------- ------------- ------------- ------------- --------------
Total
investments 233,515,424 32,420,246 86,689,043 31,531,420 17,211,429 464,225,104
Receivables-
Employees' contributions 244,145 79,042 189,205 37,911 33,163 456,575
Employers' contributions - - - - - -
Accrued interest - - - - - 3,867,269
------------ --------------- ------------- ------------- ------------- ------------
244,145 79,042 189,205 37,911 33,163 4,323,844
Cash 901 - 272 141 113 354,123
------------ --------------- ----------- ----------- ----------- ------------
Total assets 233,760,470 32,499,288 86,878,520 31,569,472 17,244,705 468,903,071
LIABILITIES:
Due to Trustee for
purchased securities 63,061 15,944 49,719 13,054 12,980 -
------------ ----------- ----------- ----------- ----------- --------------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $233,697,409 $32,483,344 $86,828,801 $31,556,418 $17,231,725 $468,903,071
============ =========== =========== =========== =========== ============
Participant-Directed
Investment Nonparticipant-
-------------------------- Directed
Discontinued Investment
Investment Participant --------------
Options Loans Option A Total
------------ ------------- -------------- -----------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at market
value-
Corporate securities-
Tenneco Inc. common stock $ - $ - $130,359,492 $ 363,874,916
Registered investment
companies-
Capstone Growth Fund,
Inc. - - - 31,531,420
Fidelity U.S. Equity
Index Portfolio - - - 32,420,246
Fidelity Growth Company
Fund - - - 86,689,043
Fidelity U.S. Bond Index
Portfolio - - - 17,211,429
------------ ------------- -------------- --------------
- - - 167,852,138
U.S. Treasury notes - - - 238,545,135
BASIC agreement on U.S.
Treasury notes - - - (1,410,145)
Time deposits - - - 227,090,114
Cash surrender value of
life insurance policies 86,486 - - 86,486
Participant loans
receivable - 27,349,098 - 27,349,098
------------ ------------- -------------- --------------
Total
investments 86,486 27,349,098 130,359,492 1,023,387,742
Receivables-
Employees' contributions 281 - - 1,040,322
Employers' contributions - - 948,894 948,894
Accrued interest - - - 3,867,269
------------ ------------- -------------- --------------
281 - 948,894 5,856,485
Cash - - - 355,550
------------ ------------- -------------- --------------
Total assets 86,767 27,349,098 131,308,386 1,029,599,777
LIABILITIES:
Due to Trustee for
purchased securities - - - 154,758
------------ ------------- -------------- --------------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $86,767 $27,349,098 $131,308,386 $1,029,445,019
============ ============= ============== ==============
</TABLE>
<PAGE>
Exhibit 1
(continued)
TENNECO INC. THRIFT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS BY INVESTMENT OPTION
DECEMBER 31, 1994
<TABLE>
<CAPTION>
Participant-Directed Investment
-------------------------------------------------------------------------
Option A Option B Option C Option D Option E
---------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at market value-
Corporate securities-
Tenneco Inc. common stock $220,126,196 $ -- $ -- $ -- $ --
Tenneco Inc. preferred stock -- -- -- -- --
Registered investment companies-
Capstone Growth Fund, Inc. -- -- -- 29,045,842 --
Fidelity U.S. Equity Index Portfolio -- 22,910,784 -- -- --
Fidelity Growth Company Fund -- -- 66,799,867 -- --
Fidelity U.S. Bond Index Portfolio -- -- -- -- 13,449,071
------------ ----------- ----------- ----------- -----------
-- 22,910,784 66,799,867 29,045,842 13,449,071
U.S. Treasury notes -- -- -- -- --
BASIC agreement on U.S. Treasury notes -- -- -- -- --
Time deposits -- -- -- -- --
Cash surrender value of life insurance
policies -- -- -- -- --
Participant loans receivable -- -- -- -- --
------------ ----------- ----------- ----------- -----------
Total investments 220,126,196 22,910,784 66,799,867 29,045,842 13,449,071
Receivables-
Employees' contributions 252,618 66,497 157,557 37,699 29,914
Employers' contributions -- -- -- -- --
Due from Trustee for liquidated securities -- -- -- -- --
Accrued interest -- -- -- -- --
------------ ----------- ----------- ----------- -----------
252,618 66,497 157,557 37,699 29,914
Cash 278 33 894 17 97
------------ ----------- ----------- ----------- -----------
Total assets 220,379,092 22,977,314 66,958,318 29,083,558 13,479,082
LIABILITIES:
Due to Trustee for purchased securities 24,876 15,890 54,737 10,233 9,313
------------ ----------- ----------- ----------- -----------
NET ASSETS AVAILABLE FOR PLAN BENEFITS $220,354,216 $22,961,424 $66,903,581 $29,073,325 $13,469,769
============ =========== =========== =========== ===========
Participant-Directed
Investment Nonparticipant-
-------------------------------------- Directed
Discontinued Investment
Investment Participant ---------------
Option F Options Loans Option A Total
------------ ------------ ----------- --------------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at market value-
Corporate securities-
Tenneco Inc. common stock $ -- $ -- $ -- $75,696,499 $295,822,695
Tenneco Inc. preferred stock -- 83,668 -- -- 83,668
Registered investment companies-
Capstone Growth Fund, Inc. -- -- -- -- 29,045,842
Fidelity U.S. Equity Index Portfolio -- -- -- -- 22,910,784
Fidelity Growth Company Fund -- -- -- -- 66,799,867
Fidelity U.S. Bond Index Portfolio -- -- -- -- 13,449,071
------------ -------- ----------- ----------- ------------
-- -- -- -- 132,205,564
U.S. Treasury notes 235,507,297 -- -- -- 235,507,297
BASIC agreement on U.S. Treasury notes 8,563,720 -- -- -- 8,563,720
Time deposits 170,403,728 -- -- -- 170,403,728
Cash surrender value of life insurance
policies -- 88,349 -- -- 88,349
Participant loans receivable -- -- 27,619,916 -- 27,619,916
------------ -------- ----------- ----------- ------------
Total investments 414,474,745 172,017 27,619,916 75,696,499 870,294,937
Receivables-
Employees' contributions 471,530 -- -- -- 1,015,815
Employers' contributions -- -- -- 931,072 931,072
Due from Trustee for liquidated securities 6,000,000 -- -- -- 6,000,000
Accrued interest 4,565,864 -- -- -- 4,565,864
------------ -------- ----------- ----------- ------------
11,037,394 -- -- 931,072 12,512,751
Cash 528,584 -- -- -- 529,903
------------ -------- ----------- ----------- ------------
Total assets 426,040,723 172,017 27,619,916 76,627,571 883,337,591
LIABILITIES:
Due to Trustee for purchased securities -- -- -- -- 115,049
------------ -------- ----------- ----------- ------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS $426,040,723 $172,017 $27,619,916 $76,627,571 $883,222,542
============ ======== =========== =========== ============
</TABLE>
<PAGE>
Exhibit 2
TENNECO INC. THRIFT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY INVESTMENT
OPTION
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
Participant-Directed Investment
----------------------------------------------------------------------------------------------
Option A Option B Option C Option D Option E Option F
------------ ----------- ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS AVAILABLE FOR
PLAN BENEFITS, beginning
of year $220,354,216 $22,961,424 $66,903,581 $29,073,325 $13,469,769 $426,040,723
------------ ----------- ----------- ----------- ----------- ------------
ADD:
Dividends-
Tenneco Inc. 7,882,241 - - - - -
Registered investment
companies - 783,458 3,867,033 4,382,470 1,106,065 -
Interest - - - - - 24,424,327
------------ ----------- ----------- ----------- ----------- ------------
7,882,241 783,458 3,867,033 4,382,470 1,106,065 24,424,327
Net appreciation in fair
value of investments 36,658,103 7,699,600 21,115,284 3,311,421 1,424,680 -
------------ ----------- ----------- ----------- ----------- ------------
Net investment income 44,540,344 8,483,058 24,982,317 7,693,891 2,530,745 24,424,327
Contributions-
Employees 9,043,738 2,718,782 6,991,199 1,592,300 1,257,810 25,359,397
Employers - - - - - -
Repayment of loan interest - - - - - -
------------ ----------- ----------- ----------- ----------- ------------
Total additions 53,584,082 11,201,840 31,973,516 9,286,191 3,788,555 49,783,724
------------ ----------- ----------- ----------- ----------- ------------
DEDUCT:
Withdrawals-
Terminated participants-
Cash 46,583 1,396 7,730 1,357 2,174 48,163,731
Securities 6,399,590 - - - - -
Active participants-
Cash 1,067 197 288 36 93 7,074,531
Securities 1,055,486 - - - - -
Administrative expenses - - - - - 634,419
Transfer to Albright & Wilson
Savings Plan 2,909,337 1,107,463 2,119,563 998,541 417,258 3,051,930
------------ ----------- ----------- ----------- ----------- ------------
Total deductions 10,412,063 1,109,056 2,127,581 999,934 419,525 58,924,611
------------ ----------- ----------- ----------- ----------- ------------
OPTION TRANSFERS (29,828,826) (570,864) (9,920,715) (5,803,164) 392,926 52,003,235
------------ ----------- ----------- ----------- ----------- ------------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, end of year $233,697,409 $32,483,344 $86,828,801 $31,556,418 $17,231,725 $468,903,071
============ =========== =========== =========== =========== ============
</TABLE>
<TABLE>
<CAPTION>
Participant-Directed Investment Nonparticipant-
--------------------------------- Directed
Discontinued Investment
Investment Participant ---------------
Options Loans Option A Total
------------ -------------- --------------- --------------
<S> <C> <C> <C> <C>
NET ASSETS AVAILABLE FOR
PLAN BENEFITS, beginning
of year $ 172,017 $27,619,916 $ 76,627,571 $ 883,222,542
--------- ----------- ------------ --------------
ADD:
Dividends-
Tenneco Inc. - - 3,517,196 11,399,437
Registered investment
companies 6,982 - - 10,146,008
Interest 13,338 - - 24,437,665
--------- ----------- ------------ --------------
20,320 - 3,517,196 45,983,110
Net appreciation in fair
value of investments 7,592 - 15,514,355 85,731,035
--------- ----------- ------------ --------------
Net investment income 27,912 - 19,031,551 131,714,145
Contributions-
Employees 10,840 - - 46,974,066
Employers - - 44,180,868 44,180,868
Repayment of loan interest - 1,917,000 - 1,917,000
--------- ----------- ------------ --------------
Total additions 38,752 1,917,000 63,212,419 224,786,079
--------- ----------- ------------ --------------
DEDUCT:
Withdrawals-
Terminated participants-
Cash - - - 48,222,971
Securities - - 1,162,342 7,561,932
Active participants-
Cash - 1,055,627 - 8,131,839
Securities - - 86,600 1,142,086
Administrative expenses 13,325 - - 647,744
Transfer to Albright & Wilson
Savings Plan - 470,820 1,782,118 12,857,030
--------- ----------- ------------ --------------
Total deductions 13,325 1,526,447 3,031,060 78,563,602
--------- ----------- ------------ --------------
OPTION TRANSFERS (110,677) (661,371) (5,500,544) -
--------- ----------- ------------ --------------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, end of year $ 86,767 $27,349,098 $131,308,386 $1,029,445,019
========= =========== ============ ==============
</TABLE>
<PAGE>
Exhibit 2
(continued)
TENNECO INC. THRIFT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY INVESTMENT
OPTION
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
Participant-Directed Investment
----------------------------------------------------------------------------------------------
Option A Option B Option C Option D Option E Option F
------------ ----------- ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSETS AVAILABLE FOR
PLAN BENEFITS, beginning
of year $289,546,070 $24,108,869 $67,635,676 $45,945,405 $19,584,321 $647,193,018
------------ ----------- ----------- ----------- ----------- ------------
ADD:
Dividends-
Tenneco Inc. 7,734,347 - - - - -
Registered investment
companies - 765,209 2,671,301 750,371 1,180,488 -
Interest - - - - - 21,923,446
------------ ----------- ----------- ----------- ----------- ------------
7,734,347 765,209 2,671,301 750,371 1,180,488 21,923,446
Net appreciation (depreciation)
in fair value of investments (45,193,152) (558,888) (5,158,061) (4,023,148) (1,674,733) 151,000
------------ ----------- ----------- ----------- ----------- ------------
Net investment income
(loss) (37,458,805) 206,321 (2,486,760) (3,272,777) (494,245) 22,074,446
Contributions-
Employees 9,689,742 2,631,256 7,021,040 1,956,836 1,308,954 27,986,672
Employers - - - - - -
Repayment of loan interest - - - - - -
Litigation settlement - - - - - 1,998,468
Transfer from EnTrade Corporation
401(k) Retirement Savings Plan - - - - - 396,369
------------ ----------- ----------- ----------- ----------- ------------
Total additions (27,769,063) 2,837,577 4,534,280 (1,315,941) 814,709 52,455,955
------------ ----------- ----------- ----------- ----------- ------------
DEDUCT:
Withdrawals-
Terminated participants-
Cash 32,393 3,726 9,903 3,751 6,997 122,029,944
Securities 419,628 - - - - -
Active participants-
Cash 1,109 116 357 141 55 12,097,902
Securities 234,182 - - - - -
Administrative expenses - - - - - 697,388
Transfer to Case Corporation
Savings Plan 61,283,101 4,210,969 15,557,229 8,549,542 4,281,115 117,556,456
------------ ----------- ----------- ----------- ----------- ------------
Total deductions 61,970,413 4,214,811 15,567,489 8,553,434 4,288,167 252,381,690
------------ ----------- ----------- ----------- ----------- ------------
OPTION TRANSFERS 20,547,622 229,789 10,301,114 (7,002,705) (2,641,094) (21,226,560)
------------ ----------- ----------- ----------- ----------- ------------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, end of year $220,354,216 $22,961,424 $66,903,581 $29,073,325 $13,469,769 $426,040,723
============ =========== =========== =========== =========== ============
</TABLE>
<TABLE>
<CAPTION>
Participant-Directed Investment Nonparticipant-
--------------------------------- Directed
Discontinued Investment
Investment Participant ---------------
Options Loans Option A Total
------------ -------------- --------------- --------------
<S> <C> <C> <C> <C>
NET ASSETS AVAILABLE FOR
PLAN BENEFITS, beginning
of year $212,662 $32,817,995 $ 60,475,695 $1,187,519,711
-------- ----------- ------------ --------------
ADD:
Dividends-
Tenneco Inc. - - 2,262,858 9,997,205
Registered investment
companies 5,260 - - 5,372,629
Interest 11,529 - - 21,934,975
-------- ----------- ------------ --------------
16,789 - 2,262,858 37,304,809
Net appreciation (depreciation)
in fair value of investments (210) - (14,300,333) (70,757,525)
-------- ----------- ------------ --------------
Net investment income (loss) 16,579 - (12,037,475) (33,452,716)
Contributions-
Employees 12,892 - - 50,607,392
Employers - - 47,539,778 47,539,778
Repayment of loan interest - 2,203,350 - 2,203,350
Litigation settlement - - - 1,998,468
Transfer from EnTrade Corporation
401(k) Retirement Savings Plan - - - 396,369
-------- ----------- ------------ --------------
Total additions 29,471 2,203,350 35,502,303 69,292,641
-------- ----------- ------------ --------------
DEDUCT:
Withdrawals-
Terminated participants-
Cash - - - 122,086,714
Securities - - 7,174,235 7,593,863
Active participants-
Cash - 2,075,327 - 14,175,007
Securities - - 250,439 484,621
Administrative expenses 25,854 - - 723,242
Transfer to Case Corporation
Savings Plan - 4,326,276 12,761,675 228,526,363
-------- ----------- ------------ --------------
Total deductions 25,854 6,401,603 20,186,349 373,589,810
-------- ----------- ------------ --------------
OPTION TRANSFERS (44,262) (999,826) 835,922 -
-------- ----------- ------------ --------------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, end of year $172,017 $27,619,916 $ 76,627,571 $ 883,222,542
======== =========== ============ ==============
</TABLE>
<PAGE>
SCHEDULE I
TENNECO INC. THRIFT PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1995
<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 7,332,492 $331,392,250 $363,874,916
------------ ------------
Total corporate securities 331,392,250 363,874,916
------------ ------------
REGISTERED INVESTMENT
COMPANIES:
Capstone Financial
Services Capstone Growth Fund, Inc. 2,283,231 29,993,103 31,531,420
Fidelity Investments
Institutional Services
Co. Fidelity U.S. Equity Index Portfolio 1,437,115 24,935,106 32,420,246
Fidelity Investments
Institutional Services
Co. Fidelity Growth Company Fund 2,388,589 71,105,240 86,689,043
Fidelity Investments
Institutional Services
Co. Fidelity U.S. Bond Index Portfolio 1,571,333 16,899,764 17,211,429
------------ ------------
Total registered investment companies 142,933,213 167,852,138
------------ ------------
U.S. TREASURY NOTES:
U.S. Government U.S. Treasury note, 7.500%, due January 31, 1996 $ 6,000,000 6,015,255 6,011,015
U.S. Government U.S. Treasury note, 4.625%, due February 15, 1996 6,000,000 6,002,337 5,996,484
U.S. Government U.S. Treasury note, 7.750%, due March 31, 1996 6,000,000 6,048,812 6,035,625
U.S. Government U.S. Treasury note, 7.625%, due April 30, 1996 6,000,000 6,063,123 6,045,235
U.S. Government U.S. Treasury note, 5.500%, due April 30, 1996 6,000,000 5,985,270 6,005,156
U.S. Government U.S. Treasury note, 4.250%, due May 15, 1996 6,000,000 5,998,372 5,978,202
U.S. Government U.S. Treasury note, 7.875%, due June 30, 1996 6,000,000 6,110,107 6,075,938
U.S. Government U.S. Treasury note, 7.875%, due July 31, 1996 6,000,000 6,117,502 6,089,063
U.S. Government U.S. Treasury note, 4.375%, due August 15, 1996 12,000,000 11,898,948 11,936,250
U.S. Government U.S. Treasury note, 7.250%, due August 31, 1996 6,000,000 6,106,539 6,074,531
U.S. Government U.S. Treasury note, 7.000%, due September 30, 1996 6,000,000 6,112,178 6,074,765
U.S. Government U.S. Treasury note, 6.875%, due October 31, 1996 6,000,000 6,113,474 6,077,344
U.S. Government U.S. Treasury note, 4.375%, due November 15, 1996 6,000,000 5,998,105 5,955,938
U.S. Government U.S. Treasury note, 4.375%, due November 15, 1996 12,000,000 11,877,051 11,911,876
U.S. Government U.S. Treasury note, 4.375%, due November 15, 1996 14,000,000 13,876,250 13,897,188
U.S. Government U.S. Treasury note, 6.500%, due November 30, 1996 6,000,000 6,104,503 6,064,922
U.S. Government U.S. Treasury note, 6.125%, due December 31, 1996 6,000,000 6,096,681 6,058,360
U.S. Government U.S. Treasury note, 6.250%, due January 31, 1997 12,000,000 12,223,071 12,131,250
U.S. Government U.S. Treasury note, 6.750%, due February 28, 1997 12,000,000 12,225,768 12,205,781
U.S. Government U.S. Treasury note, 6.875%, due March 31, 1997 12,000,000 12,171,878 12,238,594
U.S. Government U.S. Treasury note, 6.875%, due April 30, 1997 12,000,000 12,108,534 12,254,531
U.S. Government U.S. Treasury note, 6.750%, due May 31, 1997 12,000,000 12,057,043 12,247,500
U.S. Government U.S. Treasury note, 6.375%, due June 30, 1997 6,000,000 5,989,928 6,102,188
U.S. Government U.S. Treasury note, 5.500%, due July 31, 1997 6,000,000 5,930,341 6,030,000
U.S. Government U.S. Treasury note, 5.625%, due August 31, 1997 6,000,000 5,919,017 6,038,460
U.S. Government U.S. Treasury note, 5.500%, due September 30, 1997 6,000,000 5,863,022 6,030,938
</TABLE>
<PAGE>
SCHEDULE I
Continued
2
<TABLE>
<CAPTION>
Shares or Current
Identity of Issue Description of Asset Face Value Cost Value
- --------------------------- ------------------------------------------------------- ------------ -------------- ---------------
<S> <C> <C> <C> <C>
U.S. TREASURY NOTES
(Continued):
U.S. Government U.S. Treasury note, 5.750%, due October 31, 1997 $ 6,000,000 $ 5,858,765 $ 6,057,656
U.S. Government U.S. Treasury note, 7.375%, due November 15, 1997 6,000,000 5,969,212 6,226,860
U.S. Government U.S. Treasury note, 7.375%, due November 15, 1997 6,000,000 5,958,231 6,226,860
U.S. Government U.S. Treasury note, 7.375%, due November 15, 1997 6,000,000 6,000,000 6,226,860
U.S. Government U.S. Treasury note, 7.250%, due February 15, 1998 6,000,000 6,030,535 6,239,765
------------ ------------
Total U.S. Treasury notes 236,829,852 238,545,135
------------ ------------
BASIC AGREEMENTS:
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 7.500%, due
New York January 31, 1996 -- 686 4,926
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 4.625%, due
New York February 15, 1996 -- 887 6,740
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 7.750%, due
New York March 31, 1996 -- 2,092 15,279
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 7.625%, due
New York April 30, 1996 -- 2,839 20,727
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 5.500%, due
New York April 30, 1996 -- 2,282 (17,604)
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 4.250%, due
New York May 15, 1996 -- 3,038 23,208
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 7.875%, due
New York June 30, 1996 -- 4,342 38,511
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 7.875%, due
New York July 31, 1996 -- 5,035 33,474
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 4.375%, due
New York August 15, 1996 -- 8,534 (28,768)
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 7.250%, due
New York August 31, 1996 -- 5,577 37,585
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 7.000%, due
New York September 30, 1996 -- 6,301 43,714
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 6.875%, due
New York October 31, 1996 -- 6,979 43,109
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 4.375%, due
New York November 15, 1996 -- 2,250 44,417
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 4.375%, due
New York November 15, 1996 -- 12,069 (22,756)
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 4.375%, due
New York November 15, 1996 -- 14,126 (6,812)
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 6.500%, due
New York November 30, 1996 -- 7,613 47,194
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 6.125%, due
New York December 31, 1996 -- 8,308 46,629
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 6.250%, due
New York January 31, 1997 -- 17,931 109,752
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 6.750%, due
New York February 28, 1997 -- 19,263 39,250
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 6.875%, due
New York March 31, 1997 -- 20,293 (46,423)
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 6.875%, due
New York April 30, 1997 -- 21,520 (124,477)
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 6.750%, due
New York May 31, 1997 -- 21,078 (169,379)
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 6.375%, due
New York June 30, 1997 -- 15,160 (97,101)
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 5.500%, due
New York July 31, 1997 -- 10,475 (89,184)
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 5.625%, due
New York August 31, 1997 -- 11,299 (108,144)
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 5.500%, due
New York September 30, 1997 -- 11,520 (156,396)
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 5.750%, due
New York October 31, 1997 -- 12,009 (186,882)
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 7.375%, due
New York November 15, 1997 -- 13,341 (244,307)
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 7.375%, due
New York November 15, 1997 -- 12,610 (256,019)
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 7.375%, due
New York November 15, 1997 -- 12,015 (214,845)
Bankers Trust Co. BASIC Agreement on U.S. Treasury note, 7.250%, due
New York February 15, 1998 -- 13,667 (195,563)
------------ ------------
Total BASIC Agreements
305,139 (1,410,145)
------------ ------------
</TABLE>
<PAGE>
SCHEDULE I
Continued
3
<TABLE>
<CAPTION>
Shares or Current
Identity of Issue Description of Asset Face Value Cost Value
- --------------------------- ------------------------------------------------------- ------------ -------------- ---------------
<S> <C> <C> <C> <C>
TIME DEPOSITS:
Bank One - Dayton Bank One-Dayton Flex Fund $ 24,000,000 $ 24,000,000
Bank One - Milwaukee Bank One-Milwaukee Flex Fund 24,000,000 24,000,000
FCC National Bank FCC National Bank Flex Fund 24,000,000 24,000,000
First National Bank of
Chicago First National Bank of Chicago Flex Fund 24,000,000 24,000,000
NationsBank Florida* NationsBank Florida Flex Fund 24,000,000 24,000,000
NationsBank South Carolina* NationsBank South Carolina Flex Fund 24,000,000 24,000,000
NationsBank Texas* NationsBank Texas Flex Fund 29,519,163 29,519,163
Wachovia Bank N.A. Wachovia Bank N.A. Flex Fund 24,000,000 24,000,000
Wachovia Bank of Georgia Wachovia Bank of Georgia N.A. Flex Fund 24,000,000 24,000,000
NationsBank Texas* Tenneco Thrift Flex Check #2 5,570,951 5,570,951
----------- -------------
Total time deposits 227,090,114 227,090,114
----------- -------------
Philadelphia Life
Insurance Co. CASH SURRENDER VALUE OF LIFE INSURANCE POLICIES -- 86,486
Tenneco Inc. Thrift Plan* PARTICIPANT LOANS RECEIVABLE (Interest rates
ranging from 7% to 9.75%) -- 27,349,098
----------- -------------
Total assets held for investment purposes $938,550,568 $1,023,387,742
============ ==============
</TABLE>
* Indicated party in interest.
<PAGE>
SCHEDULE II
TENNECO INC. THRIFT PLAN
SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
Number of Cost
Transactions of Assets
---------------- Purchase Selling Sold or Net Gain
Identity of Party Involved Description Purchases Sales Price(a) Price(b)(c) Distributed (Loss)
- --------------------------- ---------------------- --------- ----- -------------- ----------------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
NationsBank Texas NationsBank Texas
Flex Fund 9 46 $ 65,755,763 $ 37,232,676 $ 37,232,676 $ --
Tenneco Inc. Tenneco Inc. common
stock 140 360 38,747,729 53,713,233 49,859,908 3,853,325
Wachovia Bank N.A. Wachovia Bank N.A.
Flex Fund 12 12 259,000,000 255,000,000 255,000,000 --
Wachovia Bank of Georgia Wachovia Bank of
Georgia Flex Fund 12 12 259,000,000 255,000,000 255,000,000 --
</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 selling price.
NOTE: This schedule is a listing of series of transactions in the same security
which exceed 5% of the market value of the Tenneco Inc. Thrift Plan
assets held on January 1, 1995. The Trustee initiates and consummates all
investment transactions at the direction of the participants.
<PAGE>
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 INC. THRIFT PLAN
Date: June 24, 1996 By: /s/ DANA G. MEAD
----------------------------------
Dana G. Mead
Chairman of the Tenneco
Benefits Committee
<PAGE>
INDEX TO EXHIBIT
<TABLE>
<CAPTION>
EXHIBIT
NUMBER
-------
<C> <S>
23 --Consent of Independent Public Accountants
</TABLE>
<PAGE>
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation by
reference of our report, dated April 29, 1996, included in this Annual Report on
Form 11-K for the year ended December 31, 1995, into the previously filed Form
S-8 Registration Statement of the Tenneco Inc. Thrift Plan (File No. 33-61137).
ARTHUR ANDERSEN LLP
Houston,Texas
June 24, 1996
