<PAGE> 1
================================================================================
FORM 11-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------------
ANNUAL REPORT
PURSUANT TO SECTION 15(d)
THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1997
TETRA Technologies, Inc.
401(k) Retirement Plan
(Full title of the plan)
---------------
TETRA Technologies, Inc.
(Name and issuer of the securities held pursuant to the plan)
25025 I-45 North
The Woodlands, Texas 77380
(Address of principal executive offices)
---------------
================================================================================
<PAGE> 2
The Plan. Pursuant to the requirements of the Securities Exchange Act of
1934, the administrative committee (or other persons who administer the
employee benefit plan) have duly caused this annual report to be signed on its
behalf by the undersigned hereunto duly authorized.
TETRA Technologies, Inc.
401(k) Retirement Plan
Date: June 25, 1998 By: /s/ Bass C. Wallace, Jr.
---------------------------------
Bass C. Wallace, Jr.
Committee Member
<PAGE> 3
FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
TETRA TECHNOLOGIES, INC. 401(k) RETIREMENT PLAN
YEAR ENDED DECEMBER 31, 1997
<PAGE> 4
TETRA Technologies, Inc. 401(k) Retirement Plan
Financial Statements and Supplemental Schedules
Year ended December 31, 1997
CONTENTS
Report of Independent Auditors...............................................1
Audited Financial Statements
Statements of Net Assets Available for Plan Benefits.........................2
Statement of Changes in Net Assets Available for Plan Benefits...............3
Notes to Financial Statements................................................4
Supplemental Schedules
Item 27(a) Schedule of Assets Held for Investment Purposes.................12
Item 27(d) Schedule of Reportable Transactions.............................13
<PAGE> 5
Report of Independent Auditors
Participants and Administrator of the
TETRA Technologies, Inc. 401(k) Retirement Plan
We have audited the accompanying statements of net assets available for plan
benefits of the TETRA Technologies, Inc. 401(k) Retirement Plan (the "Plan") as
of December 31, 1997, and the related statement of changes in net assets
available for plan benefits for the year then ended. These financial statements
are the responsibility of the Plan's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
These 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 audit provides 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 Plan at
December 31, 1997, and the changes in its net assets available for plan benefits
for the year ended December 31, 1997, in conformity with generally accepted
accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment purposes as of December 31, 1997, and reportable
transactions for the year ended December 31, 1997, are presented for purposes
of complying with the Department of Labor's Rules and Regulations for Reporting
and Disclosure under the Employee Retirement Income Security Act of 1974 and
are not a required part of the basic financial statements. The supplemental
schedules have been subjected to the auditing procedures applied in our audit
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.
Houston, Texas
May 15, 1998 ERNST & YOUNG LLP
1
<PAGE> 6
TETRA Technologies, Inc. 401(k) Retirement Plan
Statements of Net Assets Available for Plan Benefits
<TABLE>
<CAPTION>
DECEMBER 31
1997 1996
----------- -----------
<S> <C> <C>
ASSETS
Cash and cash equivalents $ 70,446 $ 29,568
Investments at fair value 10,660,783 7,376,545
Participant loans receivable 439,503 321,045
Accrued income 5,824 139,426
Other receivables -- 833
----------- -----------
Total investments 11,176,556 7,867,417
Employee contributions receivable 158,090 100,298
Employer contributions receivable 56,381 229,464
----------- -----------
Total contributions 214,471 329,762
----------- -----------
Total assets 11,391,027 8,197,179
LIABILITIES
Excess contribution refunds 116,138 89,311
Other liabilities 18,496 23,870
----------- -----------
Total liabilities 134,634 113,181
----------- -----------
Net assets available for Plan benefits $11,256,393 $ 8,083,998
=========== ===========
</TABLE>
See accompanying notes.
2
<PAGE> 7
TETRA Technologies, Inc. 401(k) Retirement Plan
Statement of Changes in Net Assets Available for Plan Benefits
December 31, 1997
<TABLE>
<S> <C>
Additions:
Contributions - employee $ 1,879,518
Contributions - employer 644,606
Rollovers 203,841
------------
Total additions 2,727,965
Investment income:
Interest and dividends 416,710
Net realized and unrealized losses on investments (68,988)
------------
Total investment income 347,722
------------
Total contributions and investment income 3,075,687
Deductions:
Withdrawals and forfeitures (626,445)
Excess contribution refunds (116,138)
------------
Total deductions (742,583)
Other changes in net assets:
Transfer from qualified plan 839,291
------------
Total other changes in net assets 839,291
------------
Net increase 3,172,395
Net assets available for Plan benefits at beginning of year 8,083,998
------------
Net assets available for Plan benefits at end of year $ 11,256,393
============
</TABLE>
See accompanying notes.
3
<PAGE> 8
TETRA Technologies, Inc. 401(k) Retirement Plan
Notes to Financial Statements
December 31, 1997
1. DESCRIPTION OF THE PLAN
GENERAL
The TETRA Technologies, Inc. 401(k) Retirement Plan (the "Plan"), which became
effective January 1, 1990, is a profit sharing plan as defined by Section 401 of
the Internal Revenue Code and contains a provision for salary reduction
contributions under Section 401(k) of the Internal Revenue Code ("IRC"). The
Plan is subject to the provisions of the Employee Retirement Income Security Act
of 1974 ("ERISA").
All employees of TETRA Technologies, Inc. and its subsidiaries (the "Company")
who have reached the age of 18 are eligible to join the Plan on the January 1 or
July 1 first following the date of hire. Administrative expenses may be paid
by either the Company or the Plan.
CONTRIBUTIONS
Employees may elect to contribute from 1% to 15% of their gross compensation to
the Plan. Contributions for each employee are limited in any calendar year to an
amount as determined by IRC regulations. For calendar year 1997, the maximum
contribution allowed for each employee was $9,500. Prior to January 1, 1997, the
Company, at the discretion of the Board of Directors, made matching
contributions at the end of each fiscal year equal to a discretionary percentage
of the contributions of each Plan participant. Effective January 1, 1997, the
Company has elected to match, monthly, 50% of each participant's contributions
which does not exceed 6% of compensation. The Company may also, at the
discretion of the Board of Directors, make a profit sharing contribution to the
Plan at the end of each fiscal year. Such Company contribution will be allocated
to Plan participants in the same ratio that each participant's compensation, as
defined in the Plan agreement, bears to the total compensation of all
participants.
4
<PAGE> 9
TETRA Technologies, Inc. 401(k) Retirement Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
VESTING AND PAYMENT OF BENEFITS
All participant contributions vest immediately. All Company contributions vest
according to the following schedule:
<TABLE>
<CAPTION>
YEARS OF SERVICE PERCENTAGE
----------
<S> <C>
Less than two 0%
Two but less than three 25%
Three but less than four 50%
Four but less than five 75%
Five or more 100%
</TABLE>
Upon an employee's death, his/her entire account balance is payable to the named
beneficiary. When eligible, benefits are payable in any of several forms.
Amounts which are forfeited due to termination of employment reduce the
employer's contribution under the Plan.
Upon full termination of the Plan, the employer shall direct the distribution of
the assets to participants in accordance with the normal procedures for benefit
distributions. All participant accounts will become 100% vested in the event of
a Plan termination.
PARTICIPANT LOANS RECEIVABLE
Participants may borrow from their fund accounts a minimum of $1,000, up to a
maximum equal to the lesser of $50,000 or 50% of their vested account balances.
Loan transactions are treated as a transfer to (from) the investment fund from
(to) the participant loan fund. Loan terms range from 1 to 5 years, or up to 15
years for the purchase of a primary residence. The loans are secured by the
balances in the participants' accounts and bear interest at rates commensurate
with local prevailing rates as determined quarterly. Principal and interest are
paid ratably through payroll deductions.
5
<PAGE> 10
TETRA Technologies, Inc. 401(k) Retirement Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
INVESTMENT OPTIONS
For the years ended December 31, 1997 and 1996, the fund investment options
available to participants were as follows:
American Funds Growth Fund of America - Fund seeks to provide growth of capital
by investing primarily in a diversified portfolio for which at least 65% of its
asset value is composed of growth-type securities.
American Funds Washington Mutual Investors Fund - Fund seeks to provide current
income and the opportunity for growth of principal by investing at least 95% of
its assets in equity-type securities.
AIM Equity Fund Inc. Constellation Fund - Mutual fund seeks to provide capital
appreciation by investing in common stocks, with an emphasis on medium-sized and
smaller emerging growth companies.
American Funds Bond Fund of America - Fund seeks to provide as high a level of
current income as is consistent with preservation of capital. The fund seeks to
meet its objective by investing its assets primarily in a broadly diversified
portfolio of fixed-income funds, typically intermediate to long-term securities.
Fidelity Advisor Growth Opportunities Fund - Fund seeks to provide capital
growth by investing at least 65% of its total assets primarily in securities of
companies that are believed to have long-term growth potential.
Euro-Pacific International Fund - Fund seeks to provide long-term growth of
capital by investing at least 65% of its assets in equity securities of issuers
domiciled in Europe or the Pacific Basin. The fund invests primarily in strong,
growing companies based chiefly in the above geographical areas.
Invesco Mutual Fund GIC - Fund seeks preservation of capital while striving to
achieve a high level of income by investing in a group of guaranteed investment
contracts.
6
<PAGE> 11
TETRA Technologies, Inc. 401(k) Retirement Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
Wells Fargo Bank Short-Term Income Fund - Fund seeks to provide investors with a
competitive rate of return and a high level of stability of principal and
liquidity. Effective January 2, 1997, the Wells Fargo Short-Term Income Fund
replaced the TCB Short-Term Investment Fund as an investment option for Plan
participants. These funds share similar investment objectives.
TETRA Technologies, Inc. Common Stock - TETRA Technologies, Inc., is a specialty
inorganic chemical company that sells products, services, and process
technologies to a variety of markets, including oil and gas, agriculture, and
environmental services.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The accompanying financial statements include the fund accounts of the Plan,
which are maintained on a cash basis. The accompanying financial statements have
been adjusted for accruals of contributions and income receivable.
USE OF ESTIMATES
The preparation of the financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and
accompanying notes and schedules. Actual results could differ from those
estimates.
VALUATION OF INVESTMENTS
The fair value of the fund accounts is based on quoted market prices on the last
business day of the Plan year.
7
<PAGE> 12
TETRA Technologies, Inc. 401(k) Retirement Plan
Notes to Financial Statements (continued)
3. INVESTMENTS
Effective July 1, 1993, Texas Commerce Bank was named Plan trustee and until
January 2, 1997, all Plan investments passed through its clearing accounts prior
to final investment in one of the nine alternative investment funds, based on
the employee's allocation authorization. Alex Brown & Sons, Inc., serves as
investment manager for the funds. Amounts authorized for allocation between
funds at December 31, 1997 and transferred in 1997 and 1996, respectively, are
reflected as amounts due (to) from other fund accounts in the statements of net
assets available for plan benefits. Effective January 2, 1997, Wells Fargo Bank
(Texas), N.A., was named custodian and trustee of the Plan.
4. FEDERAL INCOME TAXES
The Plan has received a determination letter from the Internal Revenue Service
dated June 8, 1995 stating that the Plan, as written, is qualified under Section
401(a) of the IRC. Continued qualification depends upon the operation of the
Plan. It is the opinion of the Plan administrator and management that the Plan
is operating as a qualified plan. As such, the Plan is exempt from federal
income taxes under the provisions of Section 501(a) of the IRC.
5. TRANSFER FROM QUALIFIED PLAN
On July 1, 1997, the assets of the American MicroTrace Savings Plan totaling
approximately $839,000 were transferred into the Plan.
6. TRANSACTIONS WITH PARTIES-IN-INTEREST
Certain legal and accounting fees and certain administrative expenses are
absorbed by the Company.
7. EXCESS CONTRIBUTION REFUNDS
The IRC provides that the Plan cannot discriminate in favor of highly
compensated individuals. To comply with these laws, contributions in excess of
the IRC Section 401(k) and 401(m) limits and all earnings attributable to such
contributions were required to be refunded to certain highly compensated
participants. These amounts are designated on the statement of net assets
available for benefits as "Excess contribution refunds" at December 31, 1997 and
were refunded in June 1998 and May 1997, respectively.
8
<PAGE> 13
TETRA Technologies, Inc. 401(k) Retirement Plan
Notes to Financial Statements (continued)
8. PRESENTATION OF FUND INFORMATION
The statements of net assets available for benefits with fund information as of
December 31, 1997 and 1996 and the statement of changes in net assets available
for benefits with fund information for the year ended December 31, 1997 are
presented as follows:
<TABLE>
<CAPTION>
DECEMBER 31, 1997
PARTICIPANT-DIRECTED
------------------------------------------------------------------------------------------
AMERICAN WELLS
FUNDS FARGO
AMERICAN WASHINGTON BANK TETRA AIM EQUITY
FUNDS MUTUAL SHORT-TERM TECHNOLOGIES, FUND INC. AMERICAN
GROWTH FUND INVESTORS INCOME INC. COMMON CONSTELLATION FUNDS BOND
OF AMERICA FUND FUND STOCK FUND FUND OF
AMERICA
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash and cash equivalents $ -- $ -- $ 66,274 $ 4,172 $ -- $ --
Investments at fair value 408,181 1,974,317 806,000 2,964,301 1,968,812 194,608
Participant loans receivable -- -- -- -- -- --
Accrued income -- -- -- 5,824 -- --
------------------------------------------------------------------------------------------
Total investments 408,181 1,974,317 872,274 2,974,297 1,968,812 194,608
Employee contributions receivable -- -- -- 158,090 -- --
Employer contributions receivable -- -- -- 56,381 -- --
------------------------------------------------------------------------------------------
Total contributions -- -- -- 214,471 -- --
------------------------------------------------------------------------------------------
Total assets 408,181 1,974,317 872,274 3,188,768 1,968,812 194,608
LIABILITIES
Excess contribution refunds -- -- -- 116,138 -- --
Other liabilities -- -- -- 18,496 -- --
------------------------------------------------------------------------------------------
Total liabilities -- -- -- 134,634 -- --
------------------------------------------------------------------------------------------
Net assets available for Plan benefits $408,181 $1,974,317 $872,274 $3,054,134 $1,968,812 $194,608
==========================================================================================
<CAPTION>
DECEMBER 31, 1997
PARTICIPANT-DIRECTED
----------------------------------------------------------------------------
FIDELITY
ADVISOR
GROWTH INVESCO EURO-PACIFIC
OPPORTUNITIES MUTUAL INTERNATIONAL PARTICIPANT
FUND FUND GIC FUND LOANS TOTAL
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Cash and cash equivalents $ -- $ -- $ -- $ -- $ 70,446
Investments at fair value 1,966,468 152,414 225,682 -- 10,660,783
Participant loans receivable -- -- -- 439,503 439,503
Accrued income -- -- -- -- 5,824
----------------------------------------------------------------------------
Total investments 1,966,468 152,414 225,682 439,503 11,176,556
Employee contributions receivable -- -- -- -- 158,090
Employer contributions receivable -- -- -- -- 56,381
----------------------------------------------------------------------------
Total contributions -- -- -- -- 214,471
----------------------------------------------------------------------------
Total assets 1,966,468 152,414 225,682 439,503 11,391,027
LIABILITIES
Excess contribution refunds -- -- -- -- 116,138
Other liabilities -- -- -- -- 18,496
----------------------------------------------------------------------------
Total liabilities -- -- -- -- 134,634
----------------------------------------------------------------------------
Net assets available for Plan benefits $1,966,468 $152,414 $225,682 $439,503 $11,256,393
============================================================================
</TABLE>
9
<PAGE> 14
TETRA Technologies, Inc. 401(k) Retirement Plan
Notes to Financial Statements (continued)
8. PRESENTATION OF FUND INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
DECEMBER 31, 1996
PARTICIPANT-DIRECTED
---------------------------------------------------------------------------
AMERICAN FUNDS
WASHINGTON TCB TETRA AIM EQUITY
AMERICAN FUNDS MUTUAL SHORT-TERM TECHNOLOGIES, FUND INC.
GROWTH FUND INVESTORS INVESTMENT INC. COMMON CONSTELLATION
OF AMERICA FUND FUND STOCK FUND
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Cash and cash equivalents $ -- $ -- $ 21,147 $ 8,421 $ --
Investments at fair value 295,381 1,143,211 524,091 2,509,865 1,473,728
Participant loans receivable -- -- -- -- --
Accrued income 14,629 59,307 2,469 9 --
Other receivables -- -- -- 833 --
--------------------------------------------------------------------------
Total investments 310,010 1,202,518 547,707 2,519,128 1,473,728
Employee contributions receivable -- -- -- 100,298 --
Employer contributions receivable -- -- -- 229,464 --
--------------------------------------------------------------------------
Total contributions -- -- -- 329,762 --
--------------------------------------------------------------------------
Total assets 310,010 1,202,518 547,707 2,848,890 1,473,728
LIABILITIES
Excess contribution refunds -- -- -- 89,311 --
Other liabilities -- -- -- 23,870 --
--------------------------------------------------------------------------
Total liabilities -- -- -- 113,181 --
--------------------------------------------------------------------------
Net assets available for Plan benefits $310,010 $1,202,518 $547,707 $2,735,709 $1,473,728
==========================================================================
<CAPTION>
DECEMBER 31, 1996
PARTICIPANT-DIRECTED
-------------------------------------------------------------------------------------
FIDELITY
ADVISOR
AMERICAN FUNDS GROWTH INVESCO EURO-PACIFIC
BOND FUND OF OPPORTUNITIES MUTUAL INTERNATIONAL PARTICIPANT
AMERICA FUND FUND GIC FUND LOANS TOTAL
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash and cash equivalents $ -- $ -- $ -- $ -- $ -- $ 29,568
Investments at fair value 127,230 1,171,643 124,363 7,033 -- 7,376,545
Participant loans receivable -- -- -- -- 321,045 321,045
Accrued income -- 62,936 -- 76 -- 139,426
Other receivables -- -- -- -- -- 833
-------------------------------------------------------------------------------------
Total investments 127,230 1,234,579 124,363 7,109 321,045 7,867,417
Employee contributions receivable -- -- -- -- -- 100,298
Employer contributions receivable -- -- -- -- -- 229,464
-------------------------------------------------------------------------------------
Total contributions -- -- -- -- -- 329,762
-------------------------------------------------------------------------------------
Total assets 127,230 1,234,579 124,363 7,109 321,045 8,197,179
LIABILITIES
Excess contribution refunds -- -- -- -- -- 89,311
Other liabilities -- -- -- -- -- 23,870
-------------------------------------------------------------------------------------
Total liabilities -- -- -- -- -- 113,181
-------------------------------------------------------------------------------------
Net assets available for Plan benefits $127,230 $1,234,579 $124,363 $7,109 $321,045 $8,083,998
=====================================================================================
</TABLE>
10
<PAGE> 15
TETRA Technologies, Inc. 401(k) Retirement Plan
Notes to Financial Statements (continued)
8. PRESENTATION OF FUND INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1997
PARTICIPANT-DIRECTED
----------------------------------------------------------------------------------
AMERICAN FUNDS WELLS
WASHINGTON FARGO
AMERICAN FUNDS MUTUAL BANK TCB TETRA
GROWTH FUND OF INVESTORS SHORT-TERM SHORT-TERM TECHNOLOGIES,
AMERICA FUND INCOME INVESTMENT INC. COMMON
FUND FUND STOCK
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions:
Contributions - employee $ 30,700 $ 331,868 $ 104,335 $ -- $ 371,034
Contributions - employer -- -- -- -- 644,606
Rollovers 16,324 70,377 7,500 -- 56,084
----------------------------------------------------------------------------------
Total additions 47,024 402,245 111,835 -- 1,071,724
Investment income:
Interest and dividends 28,298 82,788 39,728 -- 13,300
Net realized and unrealized gains
(losses) on investments 25,365 238,247 50,960 -- (516,696)
----------------------------------------------------------------------------------
Total investment income 53,663 321,035 90,688 -- (503,396)
----------------------------------------------------------------------------------
Total contributions and investment income 100,687 723,280 202,523 -- 568,328
Deductions:
Withdrawals and forfeitures (4,924) (86,246) (183,235) -- (101,291)
Excess contribution refunds -- -- -- -- (116,138)
----------------------------------------------------------------------------------
Total deductions (4,924) (86,246) (183,235) -- (217,429)
Other changes in net assets:
Transfer from qualified plan -- -- 793,561 -- --
Transfers in (out) 2,408 134,765 59,425 (547,707) (32,474)
----------------------------------------------------------------------------------
Total other changes in net assets 2,408 134,765 852,986 (547,707) (32,474)
----------------------------------------------------------------------------------
Net increase (decrease) 98,171 771,799 872,274 (547,707) 318,425
Net assets available for Plan benefits at
beginning of year 310,010 1,202,518 -- 547,707 2,735,709
----------------------------------------------------------------------------------
Net assets available for Plan benefits at
end of year $ 408,181 $ 1,974,317 $ 872,274 $ -- $ 3,054,134
==================================================================================
<CAPTION>
YEAR ENDED DECEMBER 31, 1997
PARTICIPANT-DIRECTED
---------------------------------------------------------------------------------------
FIDELITY ADVISOR
AIM EQUITY FUND AMERICAN FUNDS GROWTH
INC. CONSTELLATION BOND FUND OF OPPORTUNITIES INVESCO MUTUAL EURO-PACIFIC
FUND AMERICA FUND FUND GIC INTERNATIONAL
FUND
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions:
Contributions - employee $ 485,221 $ 48,522 $ 411,696 $ 48,099 $ 48,043
Contributions - employer -- -- -- -- --
Rollovers 21,371 4,030 22,693 1,843 3,619
---------------------------------------------------------------------------------------
Total additions 506,592 52,552 434,389 49,942 51,662
Investment income:
Interest and dividends 148,894 12,327 66,508 9,960 14,907
Net realized and unrealized gains
(losses) on investments (26,065) (2,180) 189,119 (3,027) (24,711)
---------------------------------------------------------------------------------------
Total investment income 122,829 10,147 255,627 6,933 (9,804)
---------------------------------------------------------------------------------------
Total contributions and investment income 629,421 62,699 690,016 56,875 41,858
Deductions:
Withdrawals and forfeitures (77,278) (63,580) (77,739) (5,889) (2,135)
Excess contribution refunds -- -- -- -- --
---------------------------------------------------------------------------------------
Total deductions (77,278) (63,580) (77,739) (5,889) (2,135)
Other changes in net assets:
Transfer from qualified plan -- -- -- -- --
Transfers in (out) (57,059) 68,259 119,612 (22,935) 178,850
---------------------------------------------------------------------------------------
Total other changes in net assets (57,059) 68,259 119,612 (22,935) 178,850
---------------------------------------------------------------------------------------
Net increase (decrease) 495,084 67,378 731,889 28,051 218,573
Net assets available for Plan benefits at
beginning of year 1,473,728 127,230 1,234,579 124,363 7,109
---------------------------------------------------------------------------------------
Net assets available for Plan benefits at
end of year $ 1,968,812 $ 194,608 $ 1,966,468 $ 152,414 $ 225,682
=======================================================================================
<CAPTION>
YEAR ENDED DECEMBER 31, 1997
PARTICIPANT-DIRECTED
------------------------------------------
PARTICIPANT LOANS TOTAL
------------------------------------------
<S> <C> <C>
Additions:
Contributions - employee $ -- $ 1,879,518
Contributions - employer -- 644,606
Rollovers -- 203,841
------------------------------------------
Total additions -- 2,727,965
Investment income:
Interest and dividends -- 416,710
Net realized and unrealized gains
(losses) on investments -- (68,988)
------------------------------------------
Total investment income -- 347,722
------------------------------------------
Total contributions and investment income -- 3,075,687
Deductions:
Withdrawals and forfeitures (24,128) (626,445)
Excess contribution refunds -- (116,138)
------------------------------------------
Total deductions (24,128) (742,583)
Other changes in net assets:
Transfer from qualified plan 45,730 839,291
Transfers in (out) 96,856 --
------------------------------------------
Total other changes in net assets 142,586 839,291
------------------------------------------
Net increase (decrease) 118,458 3,172,395
Net assets available for Plan benefits at
beginning of year 321,045 8,083,998
------------------------------------------
Net assets available for Plan benefits at
end of year $ 439,503 $ 11,256,393
==========================================
</TABLE>
<PAGE> 16
Supplemental Schedules
<PAGE> 17
TETRA Technologies, Inc. 401(k) Retirement Plan
Item 27(a) - Schedule of Assets Held for Investment Purposes
EIN: 74-2148293 PN: 001
December 31, 1997
<TABLE>
<CAPTION>
DESCRIPTION
OF INVESTMENT
IDENTITY OF ISSUE, BORROWER, (SHARES OR
LESSOR, OR SIMILAR PARTY UNITS) COST MARKET
---------------------------- -------------- ---- ------
<S> <C> <C> <C>
AIM Equity Fund Inc.
Constellation Fund 74,633 $ 1,792,961 $1,968,812
American Funds Bond Fund of America 13,901 190,911 194,608
American Funds Growth Fund of America
21,735 339,828 408,181
Euro-Pacific International Fund 8,673 242,974 225,682
American Funds Washington Mutual Investors Fund
65,052 1,551,237 1,974,317
*Wells Fargo Bank Short-Term Income Fund
806,000 806,000 806,000
Fidelity Advisor Growth
Opportunities Fund 46,324 1,590,360 1,966,468
Invesco Mutual Fund GIC 152,414 152,414 152,414
*TETRA Technologies, Inc.
common stock 140,735 2,334,108 2,964,301
*Loans to participants (maturities approximate
3 years at rates ranging from 9% to 10% per
annum) -- -- 439,503
----------- -----------
Total $ 9,000,793 $11,100,286
=========== ===========
</TABLE>
*Party-in-interest
12
<PAGE> 18
TETRA Technologies, Inc. 401(k) Retirement Plan
Item 27(d) - Schedule of Reportable Transactions
EIN: 74-2148293 PN: 001
Year ended December 31, 1997
<TABLE>
<CAPTION>
CURRENT
VALUE OF
ASSET AT
SELLING PURCHASE COST OF DATE OF NET
DESCRIPTION OF ASSETS PRICE PRICE ASSET TRANSACTION GAIN
--------------------- ----- ----- ----- ----------- ----
<C> <C> <C> <C> <C> <C> <C>
CATEGORY (i) - SINGLE TRANSACTIONS IN EXCESS OF 5% OF PLAN ASSETS
WELLS FARGO BANK SHORT-TERM INCOME FUND
1 Purchase of 531,271 shares $ -- $531,271 $531,271 $531,271 $ --
1 Purchase of 641,330 shares -- 641,330 641,330 641,330 --
1 Sale of 641,330 shares 641,330 -- 641,330 641,330 --
CATEGORY (iii) - SERIES OF TRANSACTIONS IN EXCESS OF 5% OF PLAN ASSETS
AIM EQUITY FUNDS INC. CONSTELLATION FUND
76 Purchases of 30,771 shares -- 848,307 848,307 848,307 --
75 Sales of 14,353 shares 381,905 -- 323,851 381,905 58,054
FIDELITY ADVISOR GROWTH OPPORTUNITIES FUND
81 Purchases of 19,349 shares -- 791,592 791,592 791,592 --
67 Sales of 6,211 shares 244,680 -- 195,864 244,680 48,816
</TABLE>
13
<PAGE> 19
TETRA Technologies, Inc. 401(k) Retirement Plan
Item 27(d) - Schedule of Reportable Transactions (continued)
EIN: 74-2148293 PN: 001
Year ended December 31, 1997
<TABLE>
<CAPTION>
CURRENT
VALUE OF
ASSET AT
SELLING PURCHASE COST OF DATE OF NET
DESCRIPTION OF ASSETS PRICE PRICE ASSET TRANSACTION GAIN
--------------------- ----- ----- ----- ----------- ----
<S> <C> <C> <C> <C> <C>
CATEGORY (iii) SERIES OF TRANSACTIONS IN EXCESS OF
5% OF PLAN ASSETS
TETRA TECHNOLOGIES INC. COMMON STOCK
74 Purchases of 48,935 shares $ -- $1,224,316 $1,224,316 $1,224,316 $ --
57 Sales of 13,013 shares 319,735 -- 66,994 319,735 252,741
AMERICAN FUNDS WASHINGTON MUTUAL INVESTOR FUND
93 Purchases of 29,654 shares -- 859,984 859,184 859,184 --
60 Sales of 11,055 shares 314,135 -- 239,162 314,135 74,973
WELLS FARGO BANK SHORT-TERM INCOME FUND
151 Purchases of 3,598,068 shares -- 3,598,068 3,598,068 3,598,068 --
152 Sales of 2,808,073 shares 2,808,073 -- 2,808,073 2,808,073 --
</TABLE>
14
<PAGE> 20
INDEX TO EXHIBITS
Exhibit
Number Description
- ------- -----------
23 Consent of Independent Auditors
<PAGE> 1
EXHIBIT 23
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statements
(Form S-8 Nos. 33-41337 and 333-04284) pertaining to the TETRA Technologies,
Inc. 401(K) Retirement Plan of our report dated May 15, 1998, with respect to
the financial statements and schedules of the TETRA Technologies, Inc. 401(K)
Retirement Plan included in this Annual Report (Form 11-K) for the year ended
December 31, 1997.
ERNST & YOUNG LLP
Houston, Texas
June 25, 1998
