<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
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 AUTOMOTIVE HOURLY EMPLOYEES SAVINGS PLAN
111 PFINGSTEN ROAD
DEERFIELD, ILLINOIS 60015
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 Benefits Committee of the
Tenneco Automotive Hourly Employees Savings Plan:
We have audited the accompanying statements of net assets available for plan
benefits, with fund information, of the Tenneco Automotive Hourly Employees
Savings Plan as of December 31, 1995 and 1994, and the related statements of
changes in net assets available for plan benefits, with fund information, for
the years then ended. These financial statements and the supplemental schedules
referred to in the accompanying table of contents are the responsibility of
Tenneco Automotive management. 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, with fund
information, as of December 31, 1995 and 1994, and the changes in its net assets
available for plan benefits, with fund information, for the years then ended in
conformity with generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules referred to
in the accompanying table of contents are presented for the purpose of
additional analysis and are not a required part of the basic financial
statements but are supplementary information required by the Department of Labor
Rules and Regulations for Reporting and Disclosure under the Employee Retirement
Income Security Act of 1974. The fund information in the statement of net
assets available for plan benefits and the statement of changes in net assets
available for plan benefits is presented for purposes of additional analysis
rather than to present the net assets available for plan benefits and changes in
net assets available for plan benefits of each fund. The supplemental schedules
and fund information 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
Milwaukee, Wisconsin,
June 21, 1996.
<PAGE>
TENNECO AUTOMOTIVE
------------------
HOURLY EMPLOYEES SAVINGS PLAN
-----------------------------
AS OF DECEMBER 31, 1995 AND 1994
--------------------------------
TABLE OF CONTENTS
-----------------
<TABLE>
<CAPTION>
Page(s)
-------
<S> <C>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS 1
FINANCIAL STATEMENTS
Statements of Net Assets Available for Plan Benefits,
with Fund Information, as of December 31, 1995 and 1994 2-3
Statements of Changes in Net Assets Available for Plan Benefits,
with Fund Information, for the Years Ended December 31, 1995
and 1994 4-5
NOTES TO FINANCIAL STATEMENTS 6-11
SUPPLEMENTAL SCHEDULES
Item 27a--Schedule of Assets Held for Investment Purposes Schedule I
Item 27d--Schedule of 5% Reportable Transactions Schedule II
</TABLE>
<PAGE>
TENNECO AUTOMOTIVE
------------------
HOURLY EMPLOYEES SAVINGS PLAN
-----------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
--------------------------------------------------------------------------
AS OF DECEMBER 31, 1995
-----------------------
<TABLE>
<CAPTION>
Fund Information
-----------------------------------------------------------------------------
Participant Directed
------------------------------------------------------------------------------
Intermediate Small Large
Government Fixed Cap Cap
Investment Money Income Growth Growth
Grade Bond Investments Investments Investments Investments
ASSETS Fund Fund Fund Fund Fund
- --------------------------- ----------- ------------- ------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENTS, at fair
market value:
Cash and cash equivalents $ - $232,270 $ - $ - $ -
Mutual funds 142 - 424,180 278,228 453,505
Common stock, Tenneco Inc. - - - - -
---- -------- -------- -------- --------
Total investments 142 232,270 424,180 278,228 453,505
---- -------- -------- -------- --------
RECEIVABLES:
Employer contributions - - - - -
Participants contributions - 62,669 109,152 74,722 122,317
Accrued interest and
dividends - 23 56 90 88
Other - 231 423 278 452
---- -------- -------- -------- --------
Total receivables - 62,923 109,631 75,090 122,857
---- -------- -------- -------- --------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $142 $295,193 $533,811 $353,318 $576,362
==== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------
Non-
Participant
Directed
------------- ------------
Large Cap Tenneco Inc.
Value Equity Common
Investments Stock
Fund Fund Total
--------- --------- ----------
<S> <C> <C> <C>
INVESTMENTS, at fair
market value:
Cash and cash equivalents $ - $ - $ 232,270
Mutual funds 637,396 - 1,793,451
Common stock, Tenneco Inc. - 622,198 622,198
-------- -------- ----------
Total investments 637,396 622,198 2,647,919
-------- -------- ----------
RECEIVABLES:
Employer contributions - 160,917 160,917
Participants contributions 165,123 - 533,983
Accrued interest and
dividends 182 4,058 4,497
Other 635 14,021 16,040
-------- -------- ----------
Total receivables 165,940 178,996 715,437
-------- -------- ----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $803,336 $801,194 $3,363,356
======== ======== ==========
</TABLE>
The accompanying notes are an integral part of this financial statement.
-2-
<PAGE>
TENNECO AUTOMOTIVE
------------------
HOURLY EMPLOYEES SAVINGS PLAN
-----------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
--------------------------------------------------------------------------
AS OF DECEMBER 31, 1994
-----------------------
<TABLE>
<CAPTION>
Fund Information
-------------------------------------------------------------------------------------
Non-
Participant
Participant Directed Directed
----------------------------------------------------------- -------------
Investment Premium Tenneco Inc.
Cash Grade Total Common
Portfolio Bond Return Appreciation Loan Stock
ASSETS Fund Fund Fund Fund Fund Fund Total
------ ---------- ---------- ------- ------------ ----- ------------ --------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENTS, at fair market value:
Cash Portfolio Fund $43,039 $ - $ - $ - $ - $ - $ 43,039
Bond Fund - 53,833 - - - - 53,833
Return Fund - - 53,339 - - - 53,339
Appreciation Fund - - - 50,188 - - 50,188
Common Stock, Tenneco Inc. - - - - - 65,243 65,243
------- ------- ------- ------- ------ ------- --------
Total investments 43,039 53,833 53,339 50,188 - 65,243 265,642
------- ------- ------- ------- ------ ------- --------
LOANS TO PARTICIPANTS - - - - 1,744 - 1,744
RECEIVABLES:
Employer contributions - - - - - 2,755 2,755
Participants contributions 1,926 2,020 2,709 2,486 - - 9,141
Accrued interest and dividends 2 3 2 2 - - 9
Loans - 37 51 49 (137) - -
------- ------- ------- ------- ------ ------- --------
Total receivables 1,928 2,060 2,762 2,537 (137) 2,755 11,905
------- ------- ------- ------- ------ ------- --------
NET ASSETS AVAILABLE FOR PLAN BENEFITS $44,967 $55,893 $56,101 $52,725 $1,607 $67,998 $279,291
======= ======= ======= ======= ====== ======= ========
</TABLE>
The accompanying notes are an integral part of this financial statement.
-3-
<PAGE>
TENNECO AUTOMOTIVE
------------------
HOURLY EMPLOYEES SAVINGS PLAN
-----------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND
-------------------------------------------------------------------------
INFORMATION
-----------
FOR THE YEAR ENDED DECEMBER 31, 1995
------------------------------------
<TABLE>
<CAPTION>
Fund Information
----------------------------------------------------------------------------------------------------
Participant Directed
----------------------------------------------------------------------------------------------------
Investment Premium Government Intermediate Small Cap
Cash Grade Total Money Fixed Income Growth
Portfolio Bond Return Appreciation Investments Investments Investments
Fund Fund Fund Fund Fund Fund Fund
------------- --------- ---------- ------------- -------------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment income-
Net appreciation
(depreciation) in fair
market value of
investments $ - $ 8,418 $ 3,379 $ 7,110 $ - $ 4,043 $(31,294)
Interest and dividends 1,294 1,863 1,961 172 2,257 6,724 41,048
------------ ---------- ----------- ------------- -------------- ----------- ---------
1,294 10,281 5,340 7,282 2,257 10,767 9,754
Loan payments from
participants - 437 585 585 - - -
Contributions-
Employer - - - - - - -
Participants 2,189 1,042 1,807 1,726 276,908 521,141 341,834
Rollovers - - - - 10,869 1,000 1,000
------------ ---------- ----------- ------------- -------------- ----------- ---------
Total additions 3,483 11,760 7,732 9,593 290,034 532,908 352,588
------------ ---------- ----------- ------------- -------------- ----------- ---------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Benefits paid to
participants 45,571 66,272 60,545 59,333 1,059 410 116
------------ ---------- ----------- ------------- -------------- ----------- ---------
TRANSFERS BETWEEN FUNDS (2,879) (1,239) (3,288) (2,985) 6,218 1,313 846
------------ ---------- ----------- ------------- -------------- ----------- ---------
Net increase/(decrease) (44,967) (55,751) (56,101) (52,725) 295,193 533,811 353,318
NET ASSETS AVAILABLE FOR
PLAN BENEFITS:
Beginning of period 44,967 55,893 56,101 52,725 - - -
------------ ---------- ----------- ------------- -------------- ----------- ---------
End of period $ - $ 142 $ - $ - $295,193 $533,811 $353,318
============= ========== =========== ============= ============== =========== =========
</TABLE>
<TABLE>
<CAPTION>
Fund Information
--------------------------------------------------------------
Non-
Participant
Participant Directed Directed
------------------------------------ -------------
Large Cap Large Cap Tenneco
Growth Value Inc.
Investments Equity Common
Fund Investments Loan Stock Total
Fund Fund Fund
------------ ----------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment income-
Net appreciation
(depreciation) in fair
market value of
investments $ (16,151) $3,548 $ - $44,288 $23,341
Interest and dividends 20,538 22,869 - 4,394 103,120
------------ ----------- ---------- ---------- -----------
4,387 26,417 - 48,682 126,461
Loan payments from
participants - - (1,607) - -
Contributions-
Employer - - - 749,142 749,142
Participants 570,211 775,096 - - 2,491,954
Rollovers 1,000 1,000 - - 14,869
------------ ----------- ---------- ---------- -----------
Total additions 575,598 802,513 (1,607) 797,824 3,382,426
------------ ----------- ---------- ---------- -----------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Benefits paid to
participants 233 283 - 64,539 298,361
------------ ----------- ---------- ---------- -----------
TRANSFERS BETWEEN FUNDS 997 1,106 - (89) -
------------ ----------- ---------- ---------- -----------
Net increase/(decrease) 576,362 803,336 (1,607) 733,196 3,084,065
NET ASSETS AVAILABLE FOR
PLAN BENEFITS:
Beginning of period - - 1,607 67,998 279,291
------------ ----------- ---------- ---------- -----------
End of period
$576,362 $803,336 $ - $801,194 $3,363,356
============ =========== ========== ========== ===========
</TABLE>
The accompanying notes are an integral part of this financial statement.
-4-
<PAGE>
TENNECO AUTOMOTIVE
------------------
HOURLY EMPLOYEES SAVINGS PLAN
-----------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND
-------------------------------------------------------------------------
INFORMATION
-----------
FOR THE YEAR ENDED DECEMBER 31, 1994
------------------------------------
<TABLE>
<CAPTION>
Fund Information
----------------------------------------------------------------------------------------
Non-
Participant
Participant Directed Directed
----------------------------------------------------------- ------------
Investment Premium Tenneco Inc.
Cash Grade Total Common
Portfolio Bond Return Appreciation Loan Stock
Fund Fund Fund Fund Fund Fund Total
-------------- --------- -------- ------------ ---------- ----------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
Investment income-
Net (depreciation) in fair market
value of investments $ - $(7,297) $(2,415) $(3,970) $ - $(13,303) $(26,985)
Interest and dividends 1,103 4,445 3,472 3,512 48 1,805 14,385
---------- --------- ------- --------- ------- -------- --------
1,103 (2,852) 1,057 (458) 48 (11,498) (12,600)
---------- --------- ------- --------- ------- -------- --------
Loan payments from participants - 200 778 763 (1,741) - -
Contributions-
Employer - - - - - 48,255 48,255
Participants 24,876 34,956 34,653 33,784 - - 128,269
Rollover 3,828 - - - - - 3,828
---------- --------- ------- --------- ------- -------- --------
Total additions 29,807 32,304 36,488 34,089 (1,693) 36,757 167,752
---------- --------- ------- --------- ------- -------- --------
DEDUCTIONS FROM NET ASSETS ATTRIBUTED
TO:
Benefits paid to participants 2,280 3,215 6,173 6,358 - - 18,026
---------- --------- ------- --------- ------- -------- --------
Net increase (decrease) 27,527 29,089 30,315 27,731 (1,693) 36,757 149,726
LOANS TO PARTICIPANTS - (625) (1,350) (1,325) 3,300 - -
NET ASSETS AVAILABLE FOR PLAN BENEFITS:
Beginning of period 17,440 27,429 27,136 26,319 - 31,241 129,565
---------- --------- ------- --------- ------- -------- --------
End of period $44,967 $55,893 $56,101 $52,725 $ 1,607 $ 67,998 $279,291
========== ========= ======= ========= ======= ======== ========
</TABLE>
The accompanying notes are an integral part of this financial statement.
-5-
<PAGE>
TENNECO AUTOMOTIVE
------------------
HOURLY EMPLOYEES SAVINGS PLAN
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
AS OF DECEMBER 31, 1995 AND 1994
--------------------------------
(1) Description of Plan-
--------------------
General-
--------
Tenneco Automotive (the "Company") established the Tenneco Automotive
Hourly Employees Savings Plan (the "Plan") on April 1, 1993. Administration
of the Plan is the responsibility of the Tenneco Automotive Benefits
Committee and Smith Barney Trust Company (the "Trustee"). The Trustee
replaced Frontier Trust Company effective July 1, 1995. The Plan is subject
to the provisions of the Employee Retirement Income Security Act of 1974
("ERISA").
Eligibility-
------------
All hourly, nonunion employees of participating companies, who have
completed one year of service are eligible to become participants of the
plan. Effective July 1, 1994, two Walker Manufacturing Company plants in
Smithville, Tennessee and Haleyville, Alabama joined the Plan. A Monroe
Auto Equipment Company plant in Newark, Delaware joined the plan effective
March 1, 1995. Effective July 1, 1995, seven Walker Manufacturing Company
plants and six Monroe Auto Equipment Company plants joined the Plan.
Contributions-
--------------
Any participant may elect to make annual contributions to the Plan in an
amount not to exceed 8% of the participant's annual compensation. Such
contributions, including any accumulated earnings thereon, remain fully
vested at all times.
The participating companies will match a percentage of the participant's
contribution with Tenneco Inc. Common Stock. The Company match percentage
is based on the participant's years of participation in the Plan, as
follows:
Years of Participation Percentage Matched
- ----------------------- ------------------
0 but less than 1 30%
1 but less than 2 40%
2 or more 50%
6
<PAGE>
A participant's vested interest in the Company's matching contributions is
determined in accordance with the following schedule.
Years of Service Percentage Vested
----------------- -----------------
0 but less than 2 0%
2 but less than 3 20%
3 but less than 4 40%
4 but less than 5 60%
5 but less than 6 80%
6 or more 100%
Forfeitures are used to reduce Company matching contributions.
As of December 23, 1994, the Tenneco Automotive Brake Division was sold,
resulting in the Cartersville participants being automatically fully vested in
Company matching contributions at year end.
Participant Accounts-
---------------------
Individual accounts are maintained for each of the Plans participants to
reflect the participants contributions and related employer matching
contributions as well as the participants share of the Plans income.
Allocations of income are based on the proportion that each participants
account balance bears to the total of all participant account balances.
Investment Options-
-------------------
Employee contributions are invested at the discretion of the participants in
the following Consulting Group Capital Markets mutual and money market funds
effective July 1, 1995. Previously, under Frontier Trust Company,
participants had invested in Smith Barney Shearson mutual and money market
funds.
Consulting Group Capital Markets Funds:
---------------------------------------
GOVERNMENT MONEY INVESTMENTS
(Option 1) - The fund seeks to provide maximum current income to the extent
consistent with the maintenance of liquidity and the preservation of
capital by investing exclusively in short-term securities issued or
guaranteed by the U.S. government, its agencies or instrumentalities and
repurchase agreements with respect to those securities.
INTERMEDIATE FIXED INCOME INVESTMENTS
(Option 2) - The fund seeks current income and reasonable stability of
principal. The fund seeks to achieve its objectives through investment in
high quality fixed income securities.
7
<PAGE>
SMALL CAPITALIZATION GROWTH INVESTMENTS
(Option 3) - The fund seeks maximum capital appreciation through investment
of at least 65% of the portfolios assets in the common stock of emerging
growth companies.
LARGE CAPITALIZATION GROWTH INVESTMENTS
(Option 4) - The fund seeks substantial capital appreciation by investing
primarily in a diversified portfolio of common stocks that are
characterized by a growth of earnings at a rate faster than that of the S&P
500.
LARGE CAPITALIZATION VALUE EQUITY INVESTMENTS
(Option 5) - The fund seeks total return consisting of capital appreciation
and dividend income by investing primarily in a diversified portfolio of
highly liquid common stocks.
Smith Barney Shearson Funds:
----------------------------
CASH PORTFOLIO FUND
(Option 1) - The fund maximizes current income consistent with the
preservation of capital and liquidity by investing in high quality, short-
term money market instruments.
INVESTMENT GRADE BOND FUND
(Option 2) - The fund seeks a high level of current income and preservation
of capital by investing in bonds and other income producing securities.
PREMIUM TOTAL RETURN FUND
(Option 3) - The fund seeks high current return by investing in dividend-
paying common stocks.
APPRECIATION FUND
(Option 4) - The fund seeks long-term capital appreciation by investing in
equity securities.
The employer matching contributions are invested in Tenneco Inc. Common Stock.
Employee Loans-
---------------
Participants may borrow up to 50% of their employee contribution account,
subject to a minimum loan of $1,000 and a maximum loan of $50,000. Loans are
repayable through payroll deductions over periods ranging up to 54 months.
The interest rate is determined by the plan administrator based on prevailing
market conditions and is fixed over the life of the note. There were no loans
outstanding as of December 31, 1995. Two loans were outstanding as of
December 31, 1994, at an interest rate of 7%.
8
<PAGE>
(2) Significant Accounting Policies-
--------------------------------
Basis of accounting-
--------------------
The accompanying financial statements are prepared on the accrual basis of
accounting.
Income recognition-
-------------------
Interest income is recorded as earned on the accrual basis. Dividend income
is recorded on the ex-dividend date.
Investment valuation-
---------------------
Cash equivalents are stated at cost which approximates fair market value.
Other investments are stated at fair market value as determined by the
trustee by reference to published market data. Common stock of Tenneco
Inc., the parent of the Company, is carried at market value based upon the
last sales price during the Plan year as reported by the New York Stock
Exchange.
Net appreciation (depreciation) in fair market value of investments-
--------------------------------------------------------------------
Net realized and unrealized appreciation (depreciation) is recorded in the
accompanying statement of changes in net assets available for plan benefits
as net appreciation (depreciation) in fair market value of investments.
Brokerage fees are added to the acquisition costs of assets purchased and
subtracted from the proceeds of assets sold.
Administrative expenses-
------------------------
The Company pays all administrative expenses of the Plan except for the
administrative costs of mutual funds and loan processing fees.
Accounting estimates-
---------------------
The preparation of financial statements in conformity with generally
accepted accounting principles requires the Plans management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements and reported amounts of revenues and expenses
during the reporting periods. Actual results could differ from these
estimates.
(3) Investments-
------------
The Trustees of the Plan held the Plan's investments and executed
transactions therein.
9
<PAGE>
The fair market values of individual assets that represent 5% or more of the
Plans net assets as of December 31, 1995, are as follows:
<TABLE>
<S> <C>
Capital Markets Funds Government Money $232,270
Investments
Capital Markets Funds Intermediate 424,180
Fixed Income Investments
Capital Markets Funds Small Cap Growth 278,228
Investments
Capital Markets Funds Large Cap Growth 453,505
Investments
Capital Markets Funds Large Cap Value 637,396
Equity Investments
Tenneco Inc. Common Stock 622,198
</TABLE>
During 1995 and 1994, the Plan's investments (including investments bought,
sold and held during the year) appreciated (depreciated) in value as
follows:
<TABLE>
<CAPTION>
1995 1994
------- --------
<S> <C> <C>
Net realized/unrealized gains (losses)
on investments-
Mutual funds $(20,947) $(13,682)
Common stock 44,288 (13,303)
-------- --------
Net realized/unrealized gains
(losses) on investments $ 23,341 $(26,985)
======== ========
</TABLE>
(4) Benefits Paid to Participants-
------------------------------
Benefits paid to participants represent the amount paid to participants who
terminated employment during the year, as determined by their vesting
status at the time of termination. At December 31, 1995, $10,969 included
in net assets available for plan benefits is payable to terminated
employees who have withdrawn from the Plan.
(5) Income Tax Status-
------------------
The Plan received a favorable determination letter dated January 3, 1996,
from the Internal Revenue Service on the latest Plan amendment. The plan
administrator and legal counsel believe the Plan continues to operate in
compliance with the applicable requirements of the IRC.
(6) Plan Termination-
-----------------
Although it has not expressed any intent to do so, the Company has the
right under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of ERISA. In the event of plan
termination, participants will become fully vested in their account
balances.
10
<PAGE>
(7) Subsequent Events-
------------------
Effective May 1, 1996, Walker Manufacturing Company's nonunion, hourly
employees at the Goshen, Indiana plant joined the Plan. Effective January
1, 1997, the Plan will be combined with various other Tenneco Inc., the
parent company of the Company, hourly savings plans resulting in a change
in Trustee and recordkeeper.
11
<PAGE>
SCHEDULE I
TENNECO AUTOMOTIVE
------------------
HOURLY EMPLOYEE SAVINGS PLAN
----------------------------
ITEM 27a--SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
---------------------------------------------------------
AS OF DECEMBER 31, 1995
-----------------------
<TABLE>
<CAPTION>
Market
Shares Cost Value
----------- --------- --------
<S> <C> <C> <C>
Smith Barney Investment Grade Bond Fund 10.706 $133 $142
Consulting Group Capital Markets Funds:
Government Money Investments Portfolio 232,270.420 232,270 232,270
Intermediate Fixed Income Investments
Portfolio 51,353.545 420,145 424,180
Small Capitalization Growth Investments
Portfolio 17,665.246 309,519 278,228
Large Capitalization Growth Investments
Portfolio 37,020.804 469,658 453,505
Large Capitalization Value Equity
Investments Portfolio 58,103.601 633,862 637,396
Tenneco Inc. Common Stock 12,538.000 577,910 622,198
---------- ----------
Total investments $2,643,497 $2,647,919
========== ==========
</TABLE>
12
<PAGE>
SCHEDULE II
TENNECO AUTOMOTIVE
------------------
HOURLY EMPLOYEES SAVINGS PLAN
-----------------------------
Item 27d--SCHEDULE OF 5% REPORTABLE TRANSACTIONS
------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1995
------------------------------------
<TABLE>
<CAPTION>
Total Total Dollar Dollar
Number of Number Value of Value of
Description Purchases of Sales Purchases Sales Gain
----------- --------- --------- ----------- ----------- -------
<S> <C> <C> <C> <C> <C>
Smith Barney Money Funds, Inc. Cash
Portfolio - 9 $ - $ 54,984 $ -
Smith Barney Shearson Investment Grade
Bond Fund - 12 - 67,074 8,409
Smith Barney Shearson Premium Total
Return Fund - 12 - 63,248 3,379
Smith Barney Shearson Appreciation Fund - 12 - 61,733 7,110
Capital Markets Funds Reserve Deposit
Account 20 18 1,973,862 1,969,804 -
Capital Markets Funds Government Money
Investments 13 - 233,591 - -
Capital Markets Funds Intermediate
Fixed Income Investments 12 - 421,073 - -
Capital Markets Funds Small Cap Growth
Investments 12 - 309,905 - -
Capital Markets Funds Large Cap Growth
Investments 10 - 470,321 - -
Capital Markets Funds Large Cap Value
Equity Investments 10 - 634,727 - -
Tenneco Inc. Common Stock 10 - 577,910 - -
</TABLE>
13
<PAGE>
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of
1934, the Tenneco Automotive Benefits Committee has duly caused this annual
report to be signed on its behalf by the undersigned hereunto duly authorized.
TENNECO AUTOMOTIVE HOURLY EMPLOYEES
SAVINGS PLAN
Date: June 27, 1996 By: /s/ RICHARD A SNELL
----------------------------------
Richard A. Snell
Chairman of the Tenneco Automotive
Benefits Committee
<PAGE>
INDEX TO EXHIBIT
<TABLE>
<CAPTION>
SEQUENTIALLY
EXHIBIT NUMBERED
NUMBER PAGE
------- ------------
<C> <S> <C>
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 June 21, 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 Automotive Hourly Employees
Savings Plan (File No. 33-61127).
ARTHUR ANDERSEN LLP
Milwaukee, Wisconsin
June 27, 1996
