-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UPFmf6IeIsmITcwdWebVPx5VYutCkFbYY9P3BjNSKzt1K8fYyuXNiQO9ChioCO3g QrrkIL57sGr4Jy06A1+jbA== 0000030554-98-000009.txt : 19980304 0000030554-98-000009.hdr.sgml : 19980304 ACCESSION NUMBER: 0000030554-98-000009 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980302 FILED AS OF DATE: 19980303 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DUPONT E I DE NEMOURS & CO CENTRAL INDEX KEY: 0000030554 STANDARD INDUSTRIAL CLASSIFICATION: PLASTIC MAIL, SYNTH RESIN/RUBBER, CELLULOS (NO GLASS) [2820] IRS NUMBER: 510014090 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 001-00815 FILM NUMBER: 98556174 BUSINESS ADDRESS: STREET 1: 1007 MARKET ST CITY: WILMINGTON STATE: DE ZIP: 19898 BUSINESS PHONE: 3027741000 11-K 1 ANNUAL REPORT PAGE 1 ============================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 11-K ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1997 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY (FULL TITLE OF THE PLAN) E. I. DU PONT DE NEMOURS AND COMPANY 1007 MARKET STREET WILMINGTON, DELAWARE 19898 (NAME AND ADDRESS OF PRINCIPAL EXECUTIVE OFFICE OF ISSUER) ============================================================ PAGE 2 INDEX Page(s) Report of Independent Accountants................. 4 Financial Statements: Statements of Net Assets Available for Plan Benefits, with Fund Information as of September 30, 1997 and 1996....................... 5-12 Statements of Changes in Net Assets Available for Plan Benefits, with Fund Information for the Years Ended September 30, 1997 and 1996....... 13-20 Notes to Financial Statements..................... 21-28 Supplemental Schedules*: Schedule I: Schedule of Assets Held for Investment Purposes at September 30, 1997 .................... 29-30 Schedule II: Schedule of Reportable Transactions for the Year Ended September 30, 1997.............. 31 EXHIBITS Exhibit Number Description 24 Consent of Independent Accountants. *Other supplemental schedules required by Section 2520.103-10 of the Department of Labor Rules and Regulations for Reporting and Disclosure under ERISA have been omitted because they are not applicable. PAGE 3 Pursuant to the requirements of the Securities and Exchange Act of 1934, E. I. du Pont de Nemours and Company has duly caused this Annual Report to be signed by the undersigned hereunto duly authorized. Savings and Investment Plan of E. I. du Pont de Nemours and Company Date: February 18, 1998 By /s/ Gary M. Pfeiffer -------------------------------- Gary M. Pfeiffer Senior Vice President - Finance and Chief Financial Officer PAGE 4 REPORT OF INDEPENDENT ACCOUNTANTS To the Participants and Administrator of the Savings and Investment Plan of E. I. du Pont de Nemours and Company In our opinion, the financial statements listed in the accompanying index present fairly, in all material respects, the net assets available for plan benefits of the Savings and Investment Plan of E. I. du Pont de Nemours and Company (the "Plan") at September 30, 1997 and 1996, and the changes in net assets available for Plan benefits for the years then ended, in conformity with generally accepted accounting principles. These financial statements are the responsibility of the Plan Administrator; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards which 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, assessing the accounting principles used and significant estimates made by the Plan Administrator, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information included in Schedules I and II is presented for purposes of additional analysis and is not a required part of the basic financial statements but is additional information required by ERISA. The Fund Information in the statements of net assets available for benefits and the statements of changes in net assets available for 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 benefits of each fund. Schedules I and II and the 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. PRICE WATERHOUSE LLP Philadelphia, Pennsylvania January 19, 1998 PAGE 5 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION SEPTEMBER 30, 1997 (Dollars In Thousands, Except Unit or Share Values)
FUND INFORMATION -------------------------------------------------------------- 3-Way DuPont Fixed Fidelity Asset Common Income Magellan Allocation Stock Loan Fund Fund Fund Fund Fund --------- --------- --------- --------- --------- Investments, at fair value (notes 1, 2 and 3) DuPont Company common stock (cost $850,991) ............. $1,847,491 Mutual Funds (cost $963,863).............. $ 571,985 Common/Collective Trusts (cost $679,228).............. $ 159,709 Short-term investments & cash (cost $41,101) .............. $ 38,831 440 121 1,081 Loans to participants- principal balance ........... $ 185,745 --------- --------- --------- --------- --------- 38,831 572,425 159,830 1,848,572 185,745 Investments, at Contract Value Fixed income fund (contract value $5,532,584).. 5,532,584 --------- --------- --------- --------- --------- Total investments .......... 5,571,415 572,425 159,830 1,848,572 185,745 Receivables Due from E. I. du Pont de Nemours and Company....... 18,062 2,817 732 4,787 --------- --------- --------- --------- --------- Net assets available for plan benefits ...................... $5,589,477 $ 575,242 $ 160,562 $1,853,359 $ 185,745 ========== ========= ========= ========== ========= Unit or share values (note 2) ... $100.04 $99.85 $19.15 $61.56 =========== ========= ========= ========== - --------------------------- Represents more than 5% of the net assets available for benefits. Reflects stock split which occurred on June 12, 1997. The accompanying notes are an integral part of these financial statements. Continued on next page
PAGE 6 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION SEPTEMBER 30, 1997 (Continued) (Dollars In Thousands, Except Unit or Share Values)
FUND INFORMATION -------------------------------------------------------------------------- Merrill Merrill Lynch Merrill Merrill Merrill Merrill Lynch Small Lynch Lynch Lynch Lynch Basic Company Int'l Equity Global Capital Value Stock Stock Index Holdings Fund Fund Index Index Tier 6 --------- --------- --------- --------- --------- --------- Investments, at fair value (notes 1, 2 and 3) DuPont Company common stock (cost $850,991) ............. Mutual Funds (cost $963,863).............. $ 83,878 $ 119,539 $ 186,304 Common/Collective Trusts (cost $679,228).............. $ 12,487 $ 1,864 $ 584,721 Short-term investments & cash (cost $41,101)............... 72 115 127 4 1 232 Loans to participants- principal balance ........... --------- --------- --------- --------- --------- --------- 83,950 119,654 186,431 12,491 1,865 584,953 Investments, at Contract Value Fixed income fund (contract value $5,532,584).. --------- --------- --------- --------- --------- --------- Total investments .......... 83,950 119,654 186,431 12,491 1,865 584,953 Receivables Due from E. I. du Pont de Nemours and Company....... 507 673 1,005 68 15 2,186 --------- --------- --------- --------- --------- --------- Net assets available for plan benefits ...................... $ 84,457 $ 120,327 $ 187,436 $ 12,559 $ 1,880 $ 587,139 ========= ========= ========= ========= ========= ========= Unit or share values (note 2) ... $16.55 $35.53 $38.02 $11.48 $10.07 $63.63 ========= ========= ========= ========= ========= ========= - ----------------------------- Represents more than 5% of the net assets available for benefits. The accompanying notes are an integral part of these financial statements. Continued on next page
PAGE 7 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION SEPTEMBER 30, 1997 (Continued) (Dollars In Thousands, Except Unit or Share Values)
FUND INFORMATION -------------------------------------------------------------------------- Conserva- Moderate Aggressive tive Asset Asset Asset AIM Allocation Allocation Allocation Constella- AIM Fidelity Portfolio Portfolio Portfolio tion A Value A Fund --------- --------- --------- --------- --------- --------- Investments, at fair value (notes 1, 2 and 3) DuPont Company common stock (cost $850,991) ............. Mutual Funds (cost $963,863).............. $ 4,441 $ 5,342 $ 2,456 Common/Collective Trusts (cost $679,228).............. $ 3,334 $ 9,026 $ 6,892 Short-term investments & cash (cost $41,101)............... 1 3 1 2 2 1 Loans to participants- principal balance ........... --------- --------- --------- --------- --------- --------- 3,335 9,029 6,893 4,443 5,344 2,457 Investments, at Contract Value Fixed income fund (contract value $5,532,584).. --------- --------- --------- --------- --------- --------- Total investments .......... 3,335 9,029 6,893 4,443 5,344 2,457 Receivables Due from E. I. du Pont de Nemours and Company....... 13 40 59 34 43 11 --------- --------- --------- --------- --------- --------- Net assets available for plan benefits ...................... $ 3,348 $ 9,069 $ 6,952 $ 4,477 $ 5,387 $ 2,468 ========= ========= ========= ========= ========= ========= Unit or share values (note 2) ... $10.41 $10.53 $10.61 $31.23 $36.73 $30.19 ========= ========= ========= ========= ========= ========= The accompanying notes are an integral part of these financial statements. Continued on next page
PAGE 8 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION SEPTEMBER 30, 1997 (Continued) (Dollars In Thousands, Except Unit or Share Values)
FUND INFORMATION -------------------------------------------------------------------------- Franklin Fidelity Fidelity Fidelity Balance Franklin Equity Growth & Low-Priced Sheet Franklin Small Cap Income Income Stock Investment Growth I Growth I --------- --------- --------- --------- --------- --------- Investments, at fair value (notes 1, 2 and 3) DuPont Company common stock (cost $850,991) ............. Mutual Funds (cost $963,863).............. $ 16,603 $ 16,837 $ 34,459 $ 17,573 $ 2,554 $ 26,804 Common/Collective Trusts (cost $679,228).............. Short-term investments & cash (cost $41,101)............... 5 5 11 6 1 9 Loans to participants- principal balance ........... --------- --------- --------- --------- --------- --------- 16,608 16,842 34,470 17,579 2,555 26,813 Investments, at Contract Value Fixed income fund (contract value $5,532,584).. --------- --------- --------- --------- --------- --------- Total investments .......... 16,608 16,842 34,470 17,579 2,555 26,813 Receivables Due from E. I. du Pont de Nemours and Company....... 141 117 225 134 23 176 --------- --------- --------- --------- --------- --------- Net assets available for plan benefits ...................... $ 16,749 $ 16,959 $ 34,695 $ 17,713 $ 2,578 $ 26,989 ========= ========= ========= ========= ========= ========= Unit or share values (note 2) ... $53.04 $37.16 $25.75 $36.25 $27.09 $26.11 ========= ========= ========= ========= ========= ========= The accompanying notes are an integral part of these financial statements. Continued on next page
PAGE 9 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION SEPTEMBER 30, 1997 (Continued) (Dollars In Thousands, Except Unit or Share Values)
FUND INFORMATION -------------------------------------------------------------------------- Hotchkis Merrill MFS & Wiley Janus Janus Lynch MFS Total Int'l Enterprise Mercury Growth A Research A Return A --------- --------- --------- --------- --------- --------- Investments, at fair value (notes 1, 2 and 3) DuPont Company common stock (cost $850,991) ............. Mutual Funds (cost $963,863).............. $ 17,936 $ 671 $ 2,053 $ 31,484 $ 8,703 $ 1,736 Common/Collective Trusts (cost $679,228).............. Short-term investments & cash (cost $41,101)............... 5 1 10 3 Loans to participants- principal balance ........... --------- --------- --------- --------- --------- --------- 17,941 671 2,054 31,494 8,706 1,736 Investments, at Contract Value Fixed income fund (contract value $5,532,584).. --------- --------- --------- --------- --------- --------- Total investments .......... 17,941 671 2,054 31,494 8,706 1,736 Receivables Due from E. I. du Pont de Nemours and Company....... 143 4 21 219 76 11 --------- --------- --------- --------- --------- --------- Net assets available for plan benefits ...................... $ 18,084 $ 675 $ 2,075 $ 31,713 $ 8,782 $ 1,747 ========= ========= ========= ========= ========= ========= Unit or share values (note 2) ... $24.86 $31.98 $19.18 $33.83 $22.69 $16.92 ========= ========= ========= ========= ========= ========= The accompanying notes are an integral part of these financial statements. Continued on next page
PAGE 10 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION SEPTEMBER 30, 1997 (Continued) (Dollars In Thousands, Except Unit or Share Values)
FUND INFORMATION ---------------------- Total Templeton Templeton All Foreign I Growth I Funds --------- --------- ---------- Investments, at fair value (notes 1, 2 and 3) DuPont Company common stock (cost $850,991) ............... $1,847,491 Mutual Funds (cost $963,863) ............... $20,189 $14,157 1,185,704 Common/Collective Trusts (cost $679,228) ............... 778,033 Short-term investments & cash (cost $41,101) ................ 6 5 41,101 Loans to participants- principal balance ............. 185,745 ------- ------- ---------- 20,195 14,162 4,038,074 Investments, at Contract Value Fixed income fund (contract value $5,532,584) ... 5,532,584 ------- ------- ---------- Total investments ............ 20,195 14,162 9,570,658 Receivables Due from E. I. du Pont de Nemours and Company ........ 160 93 32,595 ------- ------- ---------- Net assets available for plan benefits ........................ $20,355 $14,255 $9,603,253 ======= ======= ========== Unit or share values (note 2) ..... $ 12.04 $ 23.92 ======= ======= The accompanying notes are an integral part of these financial statements.
PAGE 11 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION SEPTEMBER 30, 1996 (Dollars In Thousands, Except Unit or Share Values)
FUND INFORMATION ----------------------------------------------------------------------------- 3-Way DuPont Merrill Fixed Fidelity Asset Common Lynch Income Magellan Allocation Stock Loan Equity Fund Fund Fund Fund Fund Index ------------- ----------- ---------- ------------- -------- -------- Investments, at fair value (notes 1, 2 and 3) DuPont Company common stock (cost $521,554) ............... $1,159,506 Mutual Funds (cost $810,162)................ $522,539 Common/Collective Trusts (cost $373,311)................ $158,463 $379,297 Short-term investments & cash (cost $42,465)................. $ 40,140 478 145 1,060 347 Loans to participants- principal balance ............. $195,879 ---------- -------- -------- ---------- -------- -------- 40,140 523,017 158,608 1,160,566 195,879 379,644 Investments, at contract value Fixed income fund (contract value $5,733,798) ... 5,733,798 ---------- -------- -------- ---------- -------- -------- Total investments ............. 5,773,938 523,017 158,608 1,160,566 195,879 379,644 Receivables Due from E. I. du Pont de Nemours and Company ........ 21,473 4,029 1,022 2,694 1,805 ---------- -------- -------- ---------- -------- -------- Net assets available for plan benefits ........................ $5,795,411 $527,046 $159,630 $1,163,260 $195,879 $381,449 ========== ======== ======== ========== ======== ======== Unit or share values (note 2) ..... $ 93.11 $ 76.05 $ 15.39 $ 44.07 $ 45.41 ========== ======== ======== ========== ======== - ------------------ Represents more than 5% of the net assets available for benefits. Restated to reflect stock split which occurred on June 12, 1997. The accompanying notes are an integral part of these financial statements. Continued on next page
PAGE 12 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION SEPTEMBER 30, 1996 (Continued) (Dollars In Thousands, Except Unit or Share Values)
FUND INFORMATION Merrill Merrill Merrill Lynch Lynch Lynch Basic Total Global Capital Value All Holdings Fund Fund Funds -------- -------- -------- ----------- Investments, at fair value (notes 1, 2 and 3) DuPont Company common stock (cost $521,554) ............. $1,159,506 Mutual Funds (cost $810,162).............. $95,757 $103,724 $122,042 844,062 Common/Collective Trusts (cost $373,311).............. 537,760 Short-term investments & cash (cost $42,465)............... 88 95 112 42,465 Loans to participants- principal balance ........... 195,879 ------- -------- -------- ---------- 95,845 103,819 122,154 2,779,672 Investments, at Contract Value Fixed income fund (contract value $5,733,798).. 5,733,798 ------- -------- -------- ---------- Total investments .......... 95,845 103,819 122,154 8,513,470 Receivables Due from E. I. du Pont de Nemours and Company....... 737 837 883 33,480 -------- -------- -------- ---------- Net assets available for plan benefits .................... $96,582 $104,656 $123,037 $8,546,950 ======= ======== ======== ========== Unit or share values (note 2) ... $14.53 $30.51 $29.52 ====== ====== ====== The accompanying notes are an integral part of these financial statements.
PAGE 13 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION FOR THE YEAR ENDED SEPTEMBER 30, 1997 (Dollars in Thousands)
FUND INFORMATION 3-Way DuPont Merrill Fixed Fidelity Asset Common Lynch Income Magellan Allocation Stock Loan Equity Fund Fund Fund Fund Fund Index ---------- --------- --------- --------- --------- --------- Investment income Interest ................... $ 412,675 $ 83 $ 24 $ 168 $ 15,669 $ 14 Dividends .................. 17,400 33,398 Distribution of loan interest income .......... 10,451 1,246 313 2,023 (15,669) 516 Net realized gains (losses). 22,929 16,577 106,469 248,299 Net unrealized appreciation (depreciation) in fair value of investments ..... 125,694 19,351 358,548 (125,233) ---------- --------- --------- --------- --------- --------- Total investment income .. 423,126 167,352 36,265 500,606 123,596 Contributions DuPont Company's contributions (net of forfeitures applied of $273).................. 42,298 6,602 1,858 8,603 2,866 Participants'............... 135,209 27,077 7,284 27,250 11,749 Rollovers................... 11,421 341 110 1,233 102 ---------- --------- --------- --------- --------- --------- 612,054 201,372 45,517 537,692 0 138,313 ---------- --------- --------- --------- --------- ---------- Withdrawals .................. (429,567) (26,448) (7,237) (51,762) (9,896) (17,147) Net transfers among funds Loans ...................... (63,439) (6,825) (1,820) (10,862) 89,178 (1,914) Loan principal repayments... 53,798 6,776 1,697 11,053 (82,675) 2,888 Interfund transfers......... (317,986) (116,973) (34,511) 216,313 (496,982) Assets transferred in (out), net (60,638) (9,763) (2,718) (12,377) (6,779) (6,607) Affiliated company transfers in (out), net .... (156) 57 4 42 38 ---------- --------- --------- --------- --------- --------- (817,988) (153,176) (44,585) 152,407 (10,134) (519,762) ---------- ---------- --------- --------- --------- --------- Net increase(decrease)...... (205,934) 48,196 932 690,099 (10,134) (381,449) Net assets available for plan benefits: Beginning of year .......... 5,795,411 527,046 159,630 1,163,260 195,879 381,449 ---------- --------- -------- --------- --------- --------- End of year ................ $5,589,477 $ 575,242 $160,562 $1,853,359 $ 185,745 $ 0 ========== ========= ======== ========== ========= ========= The accompanying notes are an integral part of these financial statements. Continued on next page
PAGE 14 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION FOR THE YEAR ENDED SEPTEMBER 30, 1997 (Continued) (Dollars in Thousands)
FUND INFORMATION Merrill Merrill Lynch Merrill Merrill Merrill Merrill Lynch Small Lynch Lynch Lynch Lynch Basic Company Int'l Equity Global Capital Value Stock Stock Index Holdings Fund Fund Index Index Tier 6 --------- --------- --------- --------- --------- --------- Investment income Interest ................ $ 14 $ 19 $ 24 $ 1 $ 52 Dividends ............... 6,079 10,356 11,362 Distribution of Loan interest income ....... 215 233 309 5 $ 1 261 Net realized gains(losses) 7,042 3,568 7,641 95 5 1,902 Net unrealized appreciation (depreciation) in fair value of investments... 6,594 13,872 31,374 822 16 38,903 --------- --------- --------- --------- --------- --------- Total investment income 19,944 28,048 50,710 923 22 41,118 Contributions DuPont Company's contributions (net of forfeitures applied of $273) .............. 1,387 1,589 1,951 19 5 1,454 Participants'............ 6,021 6,540 8,698 101 27 6,228 Rollovers................ 90 154 309 17 154 --------- --------- --------- --------- --------- --------- 27,442 36,331 61,668 1,060 54 48,954 --------- --------- --------- --------- --------- --------- Withdrawals ............... (4,649) (7,743) (6,933) (4) (4) (5,413) Net transfers among funds Loans ................... (901) (1,249) (1,226) (769) Loan principal repayments 1,196 1,289 1,948 21 4 1,394 Interfund transfers...... (33,858) (10,892) 11,059 11,482 1,826 542,983 Assets transferred in(out), net (1,370) (2,074) (2,209) (41) Affiliated company transfers in(out), net.. 15 9 92 31 --------- --------- --------- --------- --------- --------- (39,567) (20,660) 2,731 11,499 1,826 538,185 --------- --------- --------- --------- --------- --------- Net increase (decrease).... (12,125) 15,671 64,399 12,559 1,880 587,139 Net assets available for plan benefits: Beginning of year ....... 96,582 104,656 123,037 --------- --------- --------- -------- --------- --------- End of year ............. $ 84,457 $ 120,327 $ 187,436 $ 12,559 $ 1,880 $ 587,139 ========= ========= ========= ======== ========= ========= The accompanying notes are an integral part of these financial statements. Continued on next page
PAGE 15 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION FOR THE YEAR ENDED SEPTEMBER 30, 1997 (Continued) (Dollars in Thousands)
FUND INFORMATION Conserva- Moderate Aggressive tive Asset Asset Asset AIM Allocation Allocation Allocation Constella- AIM Fidelity Portfolio Portfolio Portfolio tion A Value A Fund --------- --------- --------- --------- --------- --------- Investment income Interest ................ $ 1 Dividends ............... $ 42 Distribution of Loan interest income ....... $ 1 3 $ 4 $ 2 $ 2 Net realized gains(losses) 4 12 1 28 7 (3) Net unrealized appreciation (depreciation) in fair value of investments... 65 230 201 208 179 29 --------- --------- --------- --------- --------- --------- Total investment income 70 246 206 238 188 68 Contributions DuPont Company's contributions (net of forfeitures applied of $273) .............. 6 11 19 14 15 4 Participants'............ 21 50 97 57 78 22 Rollovers................ 16 12 --------- --------- --------- --------- --------- --------- 97 307 338 309 281 106 --------- --------- --------- --------- --------- --------- Withdrawals ............... (24) (53) (1) (21) (47) (1) Net transfers among funds Loans ................... (9) (10) (5) Loan principal repayments 8 16 18 11 9 2 Interfund transfers...... 3,276 8,799 6,597 4,178 5,154 2,366 Assets transferred in(out), net Affiliated company transfers in(out), net.. --------- --------- --------- --------- --------- --------- 3,251 8,762 6,614 4,168 5,106 2,362 --------- --------- --------- --------- --------- --------- Net increase (decrease).... 3,348 9,069 6,952 4,477 5,387 2,468 Net assets available for plan benefits: Beginning of year ....... --------- --------- --------- -------- --------- --------- End of year ............. $ 3,348 $ 9,069 $ 6,952 $ 4,477 $ 5,387 $ 2,468 ========= ========= ========= ======== ========= ========= The accompanying notes are an integral part of these financial statements. Continued on next page
PAGE 16 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION FOR THE YEAR ENDED SEPTEMBER 30, 1997 (Continued) (Dollars in Thousands)
FUND INFORMATION Franklin Fidelity Fidelity Fidelity Balance Franklin Equity- Growth & Low-Priced Sheet Franklin Small Cap Income Income Stock Investment Growth I Growth I --------- --------- --------- --------- --------- --------- Investment income Interest ................ $ 1 $ 1 $ 3 $ 1 $ 2 Dividends ............... 71 466 1,325 54 Distribution of Loan interest income ....... 8 7 10 7 $ 2 9 Net realized gains(losses) 17 (12) 47 21 1 77 Net unrealized appreciation (depreciation) in fair value of investments... 547 (91) 1,157 1,244 40 2,241 --------- --------- --------- --------- --------- --------- Total investment income 644 371 2,542 1,327 43 2,329 Contributions DuPont Company's contributions (net of forfeitures applied of $273) .............. 54 45 80 49 8 62 Participants'............ 253 216 412 244 42 305 Rollovers................ 104 28 73 9 63 --------- --------- --------- --------- --------- --------- 1,055 660 3,107 1,629 93 2,759 --------- --------- --------- --------- --------- --------- Withdrawals ............... (8) (28) (9) (20) (49) Net transfers among funds Loans ................... (25) (47) (14) (5) Loan principal repayments 44 39 50 33 20 117 Interfund transfers...... 15,658 16,313 31,594 16,085 2,465 24,167 Assets transferred in(out), net Affiliated company transfers in(out), net.. --------- --------- --------- --------- --------- --------- 15,694 16,299 31,588 16,084 2,485 24,230 --------- --------- --------- --------- --------- --------- Net increase (decrease).... 16,749 16,959 34,695 17,713 2,578 26,989 Net assets available for plan benefits: Beginning of year ....... --------- --------- --------- -------- --------- --------- End of year ............. $ 16,749 $ 16,959 $ 34,695 $ 17,713 $ 2,578 $ 26,989 ========= ========= ========= ======== ========= ========= The accompanying notes are an integral part of these financial statements. Continued on next page
PAGE 17 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION FOR THE YEAR ENDED SEPTEMBER 30, 1997 (Continued) (Dollars in Thousands)
FUND INFORMATION Hotchkis Merrill MFS & Wiley Janus Janus Lynch MFS Total Int'l Enterprise Mercury Growth A Research A Return A --------- --------- --------- --------- --------- --------- Investment income Interest ................ $ 1 $ 2 $ 1 Dividends ............... 29 $ 10 Distribution of Loan interest income ....... 6 $ 1 $ 1 15 4 1 Net realized gains(losses) (18) 1 17 90 14 5 Net unrealized appreciation (depreciation) in fair value of investments... 317 26 61 2,999 302 38 --------- --------- --------- --------- --------- --------- Total investment income 306 28 79 3,135 321 54 Contributions DuPont Company's contributions (net of forfeitures applied of $273) .............. 54 1 8 82 28 3 Participants'............ 269 6 47 393 149 17 Rollovers................ 37 18 22 2 3 --------- --------- --------- --------- --------- --------- 666 35 152 3,632 500 77 --------- --------- --------- --------- --------- --------- Withdrawals ............... (5) (16) (53) (49) Net transfers among funds Loans ................... (1) (4) (28) (5) Loan principal repayments 58 1 7 81 20 2 Interfund transfers...... 17,366 639 1,936 28,081 8,311 1,673 Assets transferred in(out), net Affiliated company transfers in(out), net.. --------- --------- --------- --------- --------- --------- 17,418 640 1,923 28,081 8,282 1,670 --------- --------- --------- --------- --------- --------- Net increase (decrease).... 18,084 675 2,075 31,713 8,782 1,747 Net assets available for plan benefits: Beginning of year ....... --------- --------- --------- -------- --------- --------- End of year ............. $ 18,084 $ 675 $ 2,075 $ 31,713 $ 8,782 $ 1,747 ========= ========= ========= ======== ========= ========= The accompanying notes are an integral part of these financial statements. Continued on next page
PAGE 18 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION FOR THE YEAR ENDED SEPTEMBER 30, 1997 (Continued) (Dollars in Thousands)
FUND INFORMATION Total Templeton Templeton All Foreign I Growth I Funds --------- --------- ---------- Investment income Interest ................ $ 1 $ 1 $ 428,758 Dividends ............... 80,592 Distribution of Loan interest income ....... 8 5 Net realized gains(losses) 1 14 414,851 Net unrealized appreciation (depreciation) in fair value of investments... 552 556 480,842 --------- --------- --------- Total investment income 562 576 1,405,043 Contributions DuPont Company's contributions (net of forfeitures applied of $273) .............. 61 34 69,270 Participants'............ 319 174 239,355 Rollovers................ 52 14,370 --------- --------- --------- 994 784 1,728,038 --------- --------- --------- Withdrawals ............... (19) (85) (567,291) Net transfers among funds Loans ................... (10) (10) Loan principal repayments 44 31 Interfund transfers...... 19,346 13,535 Assets transferred in(out), net (104,576) Affiliated company transfers in(out), net.. 132 --------- --------- --------- 19,361 13,471 (671,735) --------- --------- --------- Net increase (decrease).... 20,355 14,255 1,056,303 Net assets available for plan benefits: Beginning of year ....... 8,546,950 --------- --------- ---------- End of year ............. $ 20,355 $ 14,255 $9,603,253 ========= ========= ========= The accompanying notes are an integral part of these financial statements.
PAGE 19 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION FOR THE YEAR ENDED SEPTEMBER 30, 1996 (Dollars in Thousands)
FUND INFORMATION 3-Way DuPont Merrill Fixed Fidelity Asset Common Lynch Income Magellan Allocation Stock Loan Equity Fund Fund Fund Fund Fund Index ---------- --------- --------- --------- --------- --------- Investment income Interest ................... $ 426,351 $ 50 $ 14 $ 45 $ 15,786 $ 23 Dividends .................. 110,229 13 29,606 16 Distribution of loan interest income .......... 11,402 1,517 363 1,259 (15,786) 592 Net realized gains (losses). 4,038 5,281 75,619 6,888 Net unrealized appreciation (depreciation) in fair value of investments ..... (98,055) 10,075 188,126 49,941 ---------- --------- --------- --------- --------- --------- Total investment income .. 437,753 17,779 15,746 294,655 57,460 Contributions DuPont Company's contributions (net of forfeitures applied of $255).................. 47,885 8,263 2,112 5,719 2,970 Participants'............... 157,480 34,137 8,300 16,299 11,238 Rollovers................... 38,033 2,435 412 694 446 ---------- --------- --------- --------- --------- --------- 681,151 62,614 26,570 317,367 72,114 ---------- --------- --------- --------- --------- ---------- Withdrawals .................. (331,755) (20,637) (5,333) (33,275) (6,820) (9,262) Net transfers among funds Loans ...................... (72,593) (6,729) (1,882) (11,377) 98,085 (2,568) Loan principal repayments... 57,415 8,468 1,895 6,439 (80,970) 3,166 Interfund transfers......... (112,870) 13,928 4,198 (30,422) 53,042 Assets transferred in......... 8,866 264 Affiliated company transfers in (out), net .... (93) 169 (12) 677 33 ---------- --------- --------- --------- --------- --------- (451,030) (4,801) (1,134) (67,958) 10,592 44,378 ---------- ---------- --------- --------- --------- --------- Net increase(decrease)...... 230,121 57,813 25,436 249,409 10,592 116,492 Net assets available for plan benefits: Beginning of year .......... 5,565,290 469,233 134,194 913,851 185,287 264,957 ---------- --------- -------- --------- --------- --------- End of year ................ $5,795,411 $ 527,046 $159,630 $1,163,260 $ 195,879 $ 381,449 ========== ========= ======== ========== ========= ========= The accompanying notes are an integral part of these financial statements. Continued on next page
PAGE 20 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION FOR THE YEAR ENDED SEPTEMBER 30, 1996 (Continued) (Dollars in Thousands)
FUND INFORMATION Merrill Merrill Merrill Merrill Lynch Lynch Lynch Lynch Basic Total Global Balanced Capital Value All Holdings Fund Fund Fund Funds --------- --------- --------- --------- --------- Investment income Interest ................ $ 8 $ 1 $ 10 $ 8 $ 442,296 Dividends ............... 3,538 1,137 11,508 7,149 163,196 Distribution of Loan interest income ....... 197 14 226 216 Net realized gains(losses) 933 (133) 971 1,413 95,010 Net unrealized appreciation (depreciation) in fair value of investments... 4,003 (2,536) 2,904 154,458 --------- --------- --------- --------- --------- Total investment income 8,679 1,019 10,179 11,690 854,960 Contributions DuPont Company's contributions (net of forfeitures applied of $255) .............. 1,307 115 1,601 1,418 71,390 Participants'............ 5,568 420 6,570 6,117 246,129 Rollovers................ 102 66 302 334 42,824 --------- --------- --------- --------- ---------- 15,656 1,620 18,652 19,559 1,215,303 --------- --------- --------- --------- ---------- Withdrawals ............... (2,496) (241) (3,901) (3,203) (416,923) Net transfers among funds Loans ................... (875) (147) (1,107) (807) Loan principal repayments 1,076 69 1,214 1,228 Interfund transfers...... 17,869 (16,075) 24,735 45,595 Assets transferred in...... 9,130 Affiliated company transfers in (out), net.. (33) (31) (4) 706 --------- --------- --------- --------- ---------- 15,541 (16,394) 20,910 42,809 (407,087) --------- --------- --------- --------- ---------- Net increase (decrease).... 31,197 (14,774) 39,562 62,368 808,216 Net assets available for plan benefits: Beginning of year ....... 65,385 14,774 65,094 60,669 7,738,734 --------- --------- --------- -------- ---------- End of year ............. $ 96,582 $ 0 $ 104,656 $123,037 $8,546,950 ========= ========= ========= ======== ========== The accompanying notes are an integral part of these financial statements.
PAGE 21 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY (THE "COMPANY") NOTES TO FINANCIAL STATEMENTS (Dollars in thousands unless otherwise noted) NOTE 1 -- DESCRIPTION OF SAVINGS AND INVESTMENT PLAN: THE PLAN The following description of the Savings and Investment Plan of E. I. duPont de Nemours and Company (Plan) provides only general information. Participants should refer to the Plan agreement for a more comprehensive description of the Plan's provisions. The Plan is a defined contribution plan which was established by the Company's Board of Directors and became effective September 1, 1955. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. The purpose of the Plan is to encourage and assist employees in following a systematic savings program suited to their individual objectives, and to provide an opportunity for employees to become stockholders of the Company. The Plan is a tax qualified contributory profit sharing plan. Any employee of the Company or employee of the Company's subsidiaries or general partnerships which have adopted the Plan who has completed at least one year of continuous service, as determined in accordance with the Company's service rules, or who has been compensated for 1,000 or more hours in a period of twelve consecutive months is eligible to participate in the Plan. Eligible employees may participate in the Plan by authorizing the Company to make a monthly payroll deduction. The amount deducted can be deposited into a before-tax account, Regular account (for after-tax savings) or some combination thereof. Effective January 1, 1997, an employee may elect maximum savings rates in the Plan of 17% before-tax and 22% after-tax for a total maximum savings rate of 39%. Prior to this increase, the maximum savings rates were 16% before-tax and 22% after-tax for a total maximum savings rate of 38%. The Company will contribute an amount equal to 50% of the participant's savings deductions during a month except that no company contribution will be made for any participant's savings in excess of 6% of monthly pay. In addition, a participant is allowed to make lump sum savings deposits in cash or through payroll deduction to the Plan at any time. All of the above savings and elections are subject to regulatory and Plan limitations. A participant with less than five years of service who withdraws any matched before-tax or after-tax savings will forfeit a portion of related company contributions in accordance with specific plan provisions. Company contributions will be suspended for six months if a participant withdraws any matched before-tax or after-tax savings or company contributions contributed to the account during the last two years. A participant who retires from active service may elect to make an account withdrawal at any time. Required minimum distribution will begin in March of the calendar year following the year in which the participant attains age 70-1/2. PAGE 22 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY (THE "COMPANY") NOTES TO FINANCIAL STATEMENTS - (Continued) (Dollars in thousands unless otherwise noted) Participants may borrow up to one-half of their nonforfeitable account balances subject to certain minimum and maximum loan limitations. The loans are executed by promissory notes and have a minimum term of 12 months and a maximum term of 60 months, except for qualified residential loans which have a maximum term of 120 months. The loans bear an interest rate equal to the average rate charged by selected major banks to prime customers for secured loans. The loans are repaid over the term in monthly installments of principal and interest by deduction from pay or pension checks. A participant also has the right to repay the loan in full at any time without penalty. INVESTMENT FUNDS The following investment funds have been established for the investment of employee savings and company contributions. Effective July 1, 1997, 22 new investment options were added to the Plan to expand the investment choices available to participants. The new options included two index funds, seventeen mutual funds and three asset allocation portfolios. The investment options offered are described below: Fixed Income Fund - ----------------- Investments under agreement with one or more financial institutions, including insurance companies, banks and other investment companies which provide for the return of principal in full plus the payment of interest at a predetermined rate for a specific period of time. DuPont Common Stock Fund - ------------------------ DuPont common stock. Loan Fund - --------- Participant loans--amounts transferred from other funds that are loaned to participants. Merrill Lynch Funds - ------------------- A total of seven Merrill Lynch investment options are offered, each with its own investment objective: Mutual Funds: Merrill Lynch Global Holdings - seeks highest total investment return consistent with prudent risk through global diversification Merrill Lynch Capital Fund - seeks highest total investment return consistent with prudent risk Merrill Lynch Basic Value Fund- seeks capital appreciation and income Merrill Lynch Growth A - seeks growth of capital and income PAGE 23 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY (THE "COMPANY") NOTES TO FINANCIAL STATEMENTS - (Continued) (Dollars in thousands unless otherwise noted) Index Funds: Merrill Lynch Small Company Stock Index - seeks to track the holdings and total return of The Russell 2000 Index Merrill Lynch International Stock Index - seeks to track the holdings and total return of the Morgan Stanley Capital International EAFE (Europe, Australasia and Far East) Index Merrill Lynch Equity Index Tier 6 - seeks to track the holdings and total return of the Standard & Poor's 500 Composite Stock Price Index (S&P 500 Index) Effective July 1, 1997, the Merrill Lynch Growth A mutual fund, Merrill Lynch Small Company Stock Index and Merrill Lynch International Stock Index were added to the Plan as new investment options. Also on July 1, 1997, the assets of the Merrill Lynch Equity Index were transferred into the Merrill Lynch Equity Index Tier 6 Trust, thereby eliminating the Equity Index from Merrill Lynch's investment line-up. The Equity Index Tier 6 Trust is referred to as the Large Company Stock Index in participant communications. The underlying investment objective, which is to track the S&P 500 Index, remains unchanged. Mutual Funds - ------------ In addition to the four Merrill Lynch mutual funds listed above, seventeen other mutual funds are offered as investment options. Each of the mutual funds has its own investment objective and varying degrees of risk. The list of mutual funds available is: AIM Constellation A - seeks aggressive capital growth AIM Value A - seeks long-term capital growth Fidelity Fund - seeks long-term capital growth Fidelity Equity-Income - seeks reasonable income and potential for capital appreciation Fidelity Growth & Income - seeks high total return Fidelity Low-Priced Stock - seeks capital appreciation Fidelity Magellan Fund - seeks capital appreciation Franklin Balance Sheet Investment - seeks high total return Franklin Growth I - seeks capital appreciation Franklin Small Cap Growth I - seeks long-term capital growth Hotchkis & Wiley International - seeks current income, long-term growth of income and growth of capital Janus Enterprise - seeks long-term growth of capital Janus Mercury - seeks long-term growth of capital MFS Research A - seeks long-term growth of capital and future income MFS Total Return A - seeks above-average income consistent with prudent employment of capital, and growth of capital and income Templeton Foreign I - seeks long-term capital growth Templeton Growth I - seeks long-term capital growth PAGE 24 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY (THE "COMPANY") NOTES TO FINANCIAL STATEMENTS - (Continued) (Dollars in thousands unless otherwise noted) All of these mutual funds, excluding the Fidelity Magellan Fund, were added as new investment options effective July 1, 1997. Asset Allocation Portfolios - --------------------------- Four Asset Allocation Portfolios are offered as investment options for balancing risk and return: 3-Way Asset Allocation Portfolio - seeks long-term return while controlling risk Conservative Asset Allocation Portfolio - seeks lower risk with lower potential return Moderate Asset Allocation Portfolio - seeks moderate risk and return Aggressive Asset Allocation Portfolio - seeks higher return with higher potential risk The Conservative, Moderate and Aggressive Asset Allocation Portfolios were added as new investment options effective July 1, 1997. All three portfolios are composed of other investment options which are available in the Plan. All three asset allocation portfolios have as their components the Fixed Income Fund, Merrill Lynch Small Company Stock Index Trust and the Merrill Lynch Equity Index Tier 6 Trust. The Moderate and Aggressive portfolios also include the Merrill Lynch International Stock Index. The percentage of investment in the Fixed Fund or the other Merrill Lynch options varies depending on the risk. Participants may allocate their Before and After-Tax savings deductions and Company contributions among all funds at their discretion. Asset transfers out of the Plan in the Plan year ending September 30, 1997 relate primarily to sale of the Medical Products businesses ($79,406) and formation of an information technology alliance with Computer Sciences Corporation ($10,388). Asset transfers into the Plan in the Plan year ending September 30, 1996 relate primarily to formation of the DuPont-Dow Elastomers joint venture ($8,901). Affiliated company transfers in (out) represent the net movement of participant account balances between the Plan and other Company-sponsored defined contribution benefit plans. ADMINISTRATION The designated trustee of the Plan is Merrill Lynch Trust Company of America (Merrill Lynch). The administration of the Plan is vested in the Company which may designate one or more persons to operate and administer the Plan. The Company has the responsibility of appointing the trustees and the authority to designate the Plan's investment options. Reasonable expenses of administering the Plan, including, but not limited to, recordkeeping expenses, trustee fees and transactional costs may, at the election of the Plan Administrator, be paid by participants. Brokerage fees, transfer taxes, investment fees and other expenses incident to the purchase and sale of securities and investments shall be included in the cost of such securities or investments, or deducted from the sales proceeds, as the case may be. PAGE 25 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY (THE "COMPANY") NOTES TO FINANCIAL STATEMENTS - (Continued) (Dollars in thousands unless otherwise noted) While the Company has not expressed any intent to terminate the Plan, it is free to do so at any time. In the event the Plan is terminated, all participants become vested and the distribution of all account balances will be made based upon the valuation of the participant's account on the termination date. NOTE 2 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INVESTMENT VALUATION AND INCOME RECOGNITION The accompanying financial statements are prepared on the accrual basis of accounting. The Plan's investments are stated at fair value, except for the Fixed Income Fund, which is valued at contract value. The Fixed Income Fund guaranteed investment contracts, separate account portfolios and synthetic guaranteed investment contracts are fully benefit responsive and thus, are stated at cost plus accrued interest, using the contracted interest rates applied to the daily account balances. Mutual funds are valued at quoted market prices which represents the net asset value of shares held by the Plan at year-end. Common/collective trust funds are stated at the fair value of all underlying assets as reported by the applicable custodian. Loans to participants, short-term investments and cash are valued at cost which approximates fair value. Common stock is valued at its quoted market price at year-end. The Company may, at its option, issue DuPont common stock in lieu of cash contributions to the DuPont Common Stock Fund and also in lieu of cash dividends on DuPont common stock. The number of shares issued is based upon the cash value of the contributions and dividends divided by the market value of DuPont common stock at the end of the month of issue. Shares of DuPont common stock are allocated to participants in the DuPont Common Stock Fund based on the ratio of the amount deposited to each participant's account to the total amount contributed to the Fund. Dividend income is recorded on the ex-dividend date and interest income is recorded when earned. Realized gains and losses on the sale of the DuPont Common Stock Fund investment securities are based on average cost of the securities sold. Purchases and sales are recorded on a trade date basis. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires the Plan Administrator to make estimates and assumptions that affect the reported amounts in the financial statements. Actual results could differ from those estimates. PAGE 26 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY (THE "COMPANY") NOTES TO FINANCIAL STATEMENTS - (Continued) (Dollars in thousands unless otherwise noted) NOTE 3 -- INVESTMENTS The Fixed Income Fund consists of guaranteed investment contracts (GIC), separate account portfolios (SAP) and synthetic guaranteed investment contracts (SYN). The crediting interest rates ranged from 5.41% to 10.65% for the year ended September 30, 1997 and from 5.38% to 10.65% for the year ended September 30, 1996. The fund's blended rate of return for the year was 7.4% in 1997 and 7.9% in 1996. The crediting rates for SAP and SYN contracts are reset annually and are based on the market value of the underlying portfolio of assets backing these contracts. Inputs used to determine the crediting rate include each contract's portfolio market value, current yield-to-maturity, duration (i.e., weighted average life), and market value relative to contract value. All contracts have a guaranteed rate of 0% or higher. The contract values and fair values of investment contracts as of September 30, 1997 are as follows: Contract Value Fair Value (Dollars in Thousands) Guaranteed Investment Contracts $1,354,249 $1,442,989 Synthetic Guaranteed Investment Contracts 3,397,215 3,488,019 Separate Account Guaranteed Investment 789,183 783,017 Contracts $5,540,647 $5,714,025 ========== ========== The total contract value of $5,540,647 includes direct participant investments of $5,532,584 and investments of $8,063 held by the Conservative, Moderate and Aggressive Allocation Portfolios. Included in the fair value of synthetic guaranteed investment contracts is $(90,804) related to wrapper contracts which guarantee the contract value of the synthetic guaranteed investment contracts for participant-initiated withdrawal events. PAGE 27 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY (THE "COMPANY") NOTES TO FINANCIAL STATEMENTS - (Continued) (Dollars in thousands unless otherwise noted) NOTE 4 -- REALIZED AND UNREALIZED GAINS AND LOSSES Realized and unrealized gains and losses are calculated based upon historical cost of assets. Such gains and losses are computed on a current value basis for Form 5500. The difference may result in a differing classi- fication between realized and unrealized but the total gain or loss will be unaffected. NOTE 5 -- INCOME TAX STATUS The Savings and Investment Plan is a qualified plan pursuant to Section 401(a) of the Internal Revenue Code and the related Trusts are exempt from federal taxation under Section 501(a) of the Code. A favorable tax determination letter dated October 26, 1995 has been received by the Plan. Accordingly, no provision has been made for federal income taxes in the accompanying financial statements. NOTE 6 -- RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500 The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500: September 30, 1997 1996 ----------- ----------- (Dollars in Thousands) Net assets for benefits per the financial statements $9,603,253 $8,546,950 Less: Amounts allocated to withdrawing participants (5,488) (4,988) ----------- ----------- Net assets available for benefits per the Form 5500: $9,597,765 $8,541,962 =========== =========== The following is a reconciliation of benefits paid to participants per the financial statements to the Form 5500: Year ended September 30, 1997 ---------------------- (Dollars in Thousands) Benefits paid to participants per the financial statements $567,291 Add: Amounts allocated to withdrawing participants at September 30, 1997 5,488 Less: Amounts allocated to withdrawing participants at September 30, 1996 (4,988) -------- Benefits paid to participants per the Form 5500 $567,791 ======== PAGE 28 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY (THE "COMPANY") NOTES TO FINANCIAL STATEMENTS - (Continued) (Dollars in thousands unless otherwise noted) Amounts allocated to withdrawing participants are recorded on the Form 5500 for benefit claims that have been processed and approved for payment prior to September 30 but not yet paid as of that date. NOTE 7 -- RELATED PARTY TRANSACTIONS Certain Plan investments are shares of mutual funds and common/collective trust funds managed by the Trustee. Therefore, transactions in these investments qualify as party-in-interest transactions which are exempt from the prohibited transaction rules. NOTE 8 -- SUBSEQUENT EVENTS Effective with the Plan year beginning October 1, 1997, the Plan was amended to guarantee a minimum level of Company contributions to the Plan during each Plan year (October 1 through September 30). The amount of the guarantee will be determined annually by the Chief Financial Officer of the Company. Effective January 1, 1998, the maximum allowable savings rate for the before-tax account will increase from 17% to 22%. Accordingly, the total maximum savings rate (before-tax plus after-tax) will increase to 44%. Plan assets were impacted subsequent to September 30, 1997, by several business acquisitions and divestitures which occurred during 1997: - Formation of an information technology alliance with Andersen Consulting was completed in June, 1997. Assets of $11,744 were transferred out of the Plan in December, 1997. - Sale of New England Nuclear life science products business to Genstar Capital LLC was completed in June, 1997. $9,120 of cash and 35,928 shares in kind of DuPont common stock were transferred out of the Plan in January, 1998. - Purchase of ICI's PET and PEN polyester resins and PTA chemical intermediates businesses was completed in December, 1997. Assets of $5,095 were transferred into the Plan in January, 1998. PAGE 29 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY (THE "COMPANY") SCHEDULE I ITEM 27A-SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES SEPTEMBER 30, 1997 Current
Description Cost Value (Dollars in Thousands) Aetna Life Insurance Company--7.23%, 12/31/25 (SYN)............ $ 123,044 $ 123,044 Aetna Life Insurance Company--7.70%, 12/31/25 (SYN)............ 209,804 209,804 Aetna Life Insurance Company--9.71%, 12/1/98 (GIC) ............ 56,524 56,524 Aetna Life Insurance Company--9.48%, 12/1/98 (GIC) ............ 55,549 55,549 Aetna Life Insurance Company--8.90%, 12/1/99 (GIC)............. 76,949 76,949 Aetna Life Insurance Company--8.89%, 12/1/00 (GIC)............. 86,864 86,864 Allstate Life Insurance Company--8.50%, 12/1/01 (GIC) ......... 130,610 130,610 Bankers Trust--6.549%, 8/30/02 (SYN) .......................... 236,136 236,136 Bankers Trust--7.80%, 12/31/25 (SYN) .......................... 274,191 274,191 CDC--7.08%, 10/1/02 (SYN)...................................... 269,160 269,160 Citibank--5.41%, 9/1/00 (SYN).................................. 184,816 184,816 Citibank--7.47%, 08/1/01 (SYN)................................. 63,012 63,012 Deutsche Bank--6.38%, 12/31/99 (SYN)........................... 397,633 397,633 John Hancock Mutual Life Insurance Company--9.4%, 12/1/98 (GIC) 55,213 55,213 John Hancock Mutual Life Insurance Company--9.0%, 12/1/99 (GIC) 77,466 77,466 John Hancock Mutual Life Insurance Company--8.89%, 12/1/99 (GIC) 76,900 76,900 John Hancock Mutual Life Insurance Company--8.31%, 12/3/01 (GIC) 86,623 86,623 John Hancock Mutual Life Insurance Company--6.38%, 12/31/99 (SAP) 191,289 191,289 Massachusetts Mutual Life Insurance Company--9.15%, 12/1/00 (GIC) 85,369 85,369 Metropolitan Life Insurance Company--9.64%, 12/1/98, (GIC) ...... 56,226 56,226 Metropolitan Life Insurance Company--7.27%, 7/1/00 (SAP)......... 145,086 145,086 J. P. Morgan--6.62%, 12/31/99 (SYN).............................. 262,090 262,090 J. P. Morgan--6.00%, 12/31/48 (SYN).............................. 291,253 291,253 New York Life Insurance Company--10.15%, 12/1/97 (GIC) .......... 12,635 12,635 New York Life Insurance Company--9.75%, 12/1/97 (GIC) ........... 12,217 12,217 New York Life Insurance Company--9.36%, 12/1/98 (GIC) ........... 55,046 55,046 New York Life Insurance Company--9.66%, 12/1/98 (GIC) ........... 16,856 16,856 New York Life Insurance Company--9.27%, 12/1/00 (GIC) ,.......... 72,479 72,479 New York Life Insurance Company--6.01%, 7/1/00 (SAP)............. 121,819 121,819 New York Life Insurance Company--6.01%, 12/1/00 (SAP)............ 165,955 165,955 New York Life Insurance Company--6.01%, 12/1/00 (SAP)............ 165,034 165,034 Peoples Security Life Insurance Company, a Member of the Capital Holdings Family--7.29%, 4/1/99 (SYN).................. 286,311 286,311 Peoples Security Life Insurance Company, a Member of the Capital Holdings Family--6.59%, 1/1/00 (SYN) ................. 243,459 243,459 Prudential Life Insurance Company--10.65%, 12/1/97 (GIC) ........ 13,173 13,173 Prudential Life Insurance Company--8.97%, 12/1/99 (GIC) ......... 80,402 80,402 Prudential Life Insurance Company-- 9.60%, 12/1/00 (GIC) ........ 75,633 75,633 Prudential Life Insurance Company--9.01%, 12/1/99 (GIC) ......... 80,616 80,616 Continued on next page
PAGE 30 SAVINGS AND INVESTMENT PLAN OF E. I. DU PONT DE NEMOURS AND COMPANY (THE "COMPANY") SCHEDULE I ITEM 27A-SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES SEPTEMBER 30, 1997 (Continued) Current
Description Cost Value (Dollars in Thousands) Travelers Life Insurance Company--10.17%, 12/1/97 (GIC) ......... 12,657 12,657 Travelers Life Insurance Company--9.15%, 12/1/99 (GIC) .......... 78,242 78,242 Union Bank of Switzerland--7.08%, 12/31/25 (SYN) ................ 287,792 287,792 Welington Management Company--6.31%, 1/1/25 (SYN)................ 268,514 268,514 ---------- ---------- Total GIC, SAP and SYN ................................... 5,540,647 5,540,647 Less: Fixed Income Contracts held by Asset Allocation Portfolios ......................................... (8,063) (8,063) ---------- ---------- 5,532,584 5,532,584 ---------- ---------- Fidelity Magellan Fund........................................... 436,737 571,985 3-Way Asset Allocation Fund...................................... 101,029 159,709 DuPont Common Stock.............................................. 850,991 1,847,491 Loans to Participants (8.25% - 8.75%)............................ 185,745 185,745 Short Term Investments and Cash.................................. 41,101 41,101 Merrill Lynch Global Holdings.................................... 68,592 83,878 Merrill Lynch Capital Fund....................................... 100,816 119,539 Merrill Lynch Basic Value Fund................................... 144,127 186,304 Merrill Lynch Small Company Stock Index.......................... 11,665 12,487 Merrill Lynch International Stock Index.......................... 1,848 1,864 Merrill Lynch Equity Index Tier 6................................ 545,930 584,721 Conservative Asset Allocation Portfolio ..................... 3,269 3,334 Moderate Asset Allocation Portfolio ......................... 8,796 9,026 Aggressive Asset Allocation Portfolio ....................... 6,691 6,892 AIM Constellation A.............................................. 4,233 4,441 AIM Value A...................................................... 5,162 5,342 Fidelity Fund.................................................... 2,427 2,456 Fidelity Equity-Income........................................... 16,056 16,603 Fidelity Growth & Income......................................... 16,928 16,837 Fidelity Low-Priced Stock........................................ 33,302 34,459 Franklin Balance Sheet Investment................................ 16,329 17,573 Franklin Growth I................................................ 2,514 2,554 Franklin Small Cap Growth I...................................... 24,563 26,804 Hotchkis & Wiley Int'l........................................... 17,619 17,936 Janus Enterprise................................................. 645 671 Janus Mercury.................................................... 1,992 2,053 Merrill Lynch Growth A........................................... 28,485 31,484 MFS Research A................................................... 8,401 8,703 MFS Total Return A............................................... 1,697 1,736 Templeton Foreign I.............................................. 19,637 20,189 Templeton Growth I............................................... 13,601 14,157 ---------- ---------- Total Investment Portfolio $8,253,512 $9,570,658 ========== ========== - ---------------------------- GIC = Guaranteed Investment Contract; SAP = Separate Account Portfolio; SYN = Synthetic Guaranteed Investment Contract The Conservative, Moderate and Aggressive Asset Allocation Portfolios hold investments in Fixed Income Fund Contracts of $2,293, $4,436 and $1,334, respectively, totaling $8,063.
PAGE 31 SAVINGS AND INVESTMENT PLAN OF E.I. DUPONT DE NEMOURS AND COMPANY SCHEDULE II ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED SEPTEMBER 30, 1997 (DOLLARS IN THOUSANDS) Transactions or Series of Transactions in Excess of 5% of Current Value of Plan Assets as of October 1, 1996
Contract Current Identity Value/ Value on of Party Description Purchase Sales Cost of Transaction Gain on Involved of Asset Price Price Asset Date Transaction - -------- ----------- ------- ----- -------- ---------- ----------- DuPont Common Stock $672,594 $ 672,594 $672,594 DuPont Common Stock $440,796 334,327 440,796 $106,469 ML Equity Index Tier 6 598,681 598,681 598,681 ML Equity Index Tier 6 54,797 52,895 54,797 1,902 Fixed Income GIC 888,763 888,763 888,763 Fixed Income GIC 1,503,802 1,082,626 1,503,802 421,176
PAGE 32 Exhibit 24 CONSENT OF INDEPENDENT ACCOUNTANTS We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 (No. 33-36339) of E. I. du Pont de Nemours and Company of our report dated January 19, 1998, which appears on page 4 of this Form 11-K. PRICE WATERHOUSE LLP Philadelphia, Pennsylvania February 26, 1998 -----END PRIVACY-ENHANCED MESSAGE-----