-----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, RbwfavhDZSokBc3/4RIvJqFnFLieouzg87HKOuzP+D1We9WOZrEqEl3LfqTl7shx Qx7ayYy8CjLvQ6V6gffKmA== 0000030554-98-000025.txt : 19980630 0000030554-98-000025.hdr.sgml : 19980630 ACCESSION NUMBER: 0000030554-98-000025 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980624 FILED AS OF DATE: 19980629 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: 98655662 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 EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 1997 COMMISSION FILE NUMBER 1-815 INVESTMENT PLAN FOR SALARIED EMPLOYEES OF CONSOL INC. CONSOL PLAZA 1800 WASHINGTON ROAD PITTSBURGH, PENNSYLVANIA 15241 (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) ============================================================================= 1 PAGE 2 INDEX INVESTMENT PLAN FOR SALARIED EMPLOYEES OF CONSOL INC. Index to Financial Statements and Additional Information Page(s) ------- Report of Independent Auditors ................................ 4 Financial Statements: Statements of Net Assets Available for 5 - 8 Benefits at December 31, 1997 and 1996 .................... Statements of Changes in Net Assets Available for Benefits for the Years Ended December 31, 1997 and 1996 ............................................. 9 - 15 Notes to Financial Statements ............................... 16 - 25 Additional Information: Schedule of Assets Held for Investment Purposes at December 31, 1997 (Schedule I) ............................ 26 - 28 Schedule of Loans in Default as of December 31, 1997 (Schedule II) ............................................. 29 - 31 Schedule of Reportable Transactions for the Year Ended December 31, 1997 (Schedule III) ............... 32 - 33 EXHIBITS Exhibit Number 24 Consent of Independent Auditors ..................... 35 2 PAGE 3 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Investment Plan Committee has duly caused this Annual Report to be signed on its behalf by the undersigned hereunto duly authorized. Investment Plan for Salaried Employees of CONSOL Inc. (Name of Plan) Date: June 25, 1998 ________________________________ Karen L. Zemba Vice President & Treasurer CONSOL Inc. 3 PAGE 4 SIGNATURE REPORT OF INDEPENDENT AUDITORS To the Investment Plan Committee of the Investment Plan for Salaried Employees of CONSOL Inc. We have audited the accompanying statements of net assets available for benefits of the Investment Plan for Salaried Employees of CONSOL Inc. as of December 31, 1997 and 1996, and the related statements of changes in net assets available for benefits for the years 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 audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan at December 31, 1997 and 1996, and the changes in its net assets available for benefits for the years then ended, in conformity with generally accepted accounting principles. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplemental schedules of assets held for investment purposes and reportable transactions, as of and 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 1997 financial statements and, in our opinion, are fairly stated in all material respects in relation to the 1996 basic financial statements taken as a whole. ERNST & YOUNG, LLP Pittsburgh, Pennsylvania May 7, 1998 4 PAGE 5 INVESTMENT PLAN FOR SALARIED EMPLOYEES OF CONSOL INC. STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1997 (Dollars In Thousands, Except for Share and Unit Amounts) Investments (Notes 1, 2 and 3): Fixed Income Fund, 5,217,495 units, (participants' cost $566,689), unit value $108.6132.... $566,689 Fidelity Magellan Fund, 456,672 shares, (participants' cost $35,314), share value $95.2700..... 43,507 Barclays 3-Way Fund, 954,292 units, (participants' cost $11,452), unit value $20.1400...... 19,219 E. I. DuPont de Nemours & Company Common Stock, 6,157,293 shares, (participants' cost $208,671), share value $60.062.................................... 369,819 Merrill Lynch Global Holdings Fund CL A, 265,982 shares, (participants' cost $3,556), share value $13.1900...... 3,508 Templeton Growth Fund, 41,565 shares, (participants' cost $925), share value $19.4000........ 806 Merrill Lynch Capital Fund CL A, 231,247 shares, (participants' cost $7,153), share value $34.5100...... 7,980 Merrill Lynch Basic Value Fund CL A, 352,098 shares, (participants' cost $11,072), share value $37.0800..... 13,056 Chrysler Corporation Common Stock, 10,277 shares, (participants' cost $77), share value $35.1870......... 362 Aggressive Asset Allocation Portfolio, 45,680 shares, (participants' cost $471), share value $10.5500........ 482 Conservative Asset Allocation Portfolio, 76,714 shares, (participants' cost $793), share value $10.5700......... 811 Moderate Asset Allocation Portfolio, 39,056 shares, (participants' cost $406), share value $10.5400......... 412 Fidelity Low Priced Stock Fund, 123,345 shares, (participants' cost $3,096), share value $25.1300....... 3,100 Franklin Small Cap Growth Fund CL 1, 116,048 shares, (participants' cost $2,802), share value $22.9300...... 2,661 Continued on next page 5 PAGE 6 INVESTMENT PLAN FOR SALARIED EMPLOYEES OF CONSOL INC. STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1997 (Continued) (Dollars In Thousands, Except for Share and Unit Amounts) Janus Enterprise Fund, 2,532 shares, (participants' cost $79), share value $30.4800......... 77 Janus Mercury Fund, 17,685 shares, (participants' cost $331), share value $16.500......... 292 Hotchkis & Wiley International Fund, 39,488 shares, (participants' cost $952), share value $22.6700........ 895 Merrill Lynch Small Cap Index Trust, 115,248 shares, (participants' cost $1,248), share value $11.0910...... 1,278 Merrill Lynch International Index Trust, 14,427 shares, (participants' cost $137), share value $9.3810......... 136 MFS Total Return Fund, 2,899 shares, (participants' cost $46), share value $15.8200......... 46 AIM Value Fund, 18,680 shares, (participants' cost $663), share value $32.4200........ 606 Fidelity Growth and Income Fund, 46,156 shares, (participants' cost $1,714), share value $38.1000...... 1,759 Merrill Lynch Growth Fund CL A, 158,662 shares, (participants' cost $4,890), share value $28.6500...... 4,546 AIM Equity Constellation Fund CL A, 21,411 shares, (participants' cost $638), share value $26.3800........ 565 Franklin Balance Sheet, 28,641 shares, (participants' cost $995), share value $33.5400........ 961 Templeton Foreign Fund, 66,532 shares, (participants' cost $740), share value $9.9500......... 662 Fidelity Fund, 13,815 shares, (participants' cost $414), share value $29.8100........ 412 Continued on next page 6 PAGE 7 INVESTMENT PLAN FOR SALARIED EMPLOYEES OF CONSOL INC. STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1997 (Continued) (Dollars In Thousands, Except for Share and Unit Amounts) Fidelity Equity Income Fund, 11,158 shares, (participants' cost $572), share value $52.4100......... 585 Franklin Custodian Fund Inc., 11,023 shares, (participants' cost $295), share value $27.0900......... 299 MFS Research Fund, 22,586 shares, (participants' cost $494), share value $21.2900.... 481 Merrill Lynch Large Company Stock Index Fund, 268,129 shares, (participants' cost $16,077), share value $65.4410......................................... 17,547 Loans to participants (principal balance)................ 22,371 -------- Total Investments.................................... $1,085,930 Employer and employee contribution receivables (including $3,281 from CONSOL)......................... 3,478 Net Assets Available for Benefits.................... $1,089,408 ========== The accompanying notes are an integral part of these financial statements. 7 PAGE 8 INVESTMENT PLAN FOR SALARIED EMPLOYEES OF CONSOL INC. STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1996 (Dollars In Thousands, Except for Share and Unit Amounts) Investments (Notes 1, 2 and 3): Fixed Income Fund, 6,451,787 units, (participants' cost $651,152), unit value $100.926... $651,152 Fidelity Magellan Fund, 496,849 shares, (participants' cost $36,566), share value $80.650.... 40,071 Barclays 3-Way Fund, 1,066,933 units, (participants' cost $12,247), unit value $16.370..... 17,466 E. I. DuPont de Nemours & Company Common Stock, 2,647,302 shares, (participants' cost $127,200), share value $94.125.................................. 249,177 Merrill Lynch Equity Index Trust CL A, 222,460 shares, (participants' cost $8,282), share value $49.161..... 10,936 Merrill Lynch Global Holdings Fund CL A, 374,467 shares, (participants' cost $4,966), share value $14.080..... 5,272 Merrill Lynch Capital Fund CL A, 174,289 shares, (participants' cost $5,091), share value $31.050..... 5,412 Merrill Lynch Basic Value Fund CL A, 193,281 shares, (participants' cost $5,214), share value $31.000..... 5,992 Chrysler Corporation Common Stock, 11,188 shares, (participants' cost $84), share value $33.000........ 369 Loans to participants (principal balance) ............. 22,157 ---------- Total Investments ................................. $1,008,004 Employer and employee contribution receivables (including $3,251 from CONSOL) ...................... 3,516 ---------- Net Assets Available for Benefits ................. $1,011,520 ========== The accompanying notes are an integral part of these financial statements. 8 PAGE 9 INVESTMENT PLAN FOR SALARIED EMPLOYEES OF CONSOL INC. STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS YEAR ENDED DECEMBER 31, 1997 (Dollars in Thousands)
Merrill Merrill Fixed Fidelity Barclays DuPont Lynch Lynch Templeton Income Magellan 3-Way Common Equity Index Global Growth Fund Fund Fund Stock Trust Holdings Fund ========= ========= ========= ========= ============ ========== ========= Investment income $ 45,463 $ 2,956 $ 2 $ 6,852 $ 1 $ 419 $ 113 (dividends and interest) Net realized and unrealized appreciation (depreciation) of investments - 6,835 3,843 65,693 2,498 41 (123) Deposits and withdrawals: Employee deposits 9,961 1,242 424 6,362 221 169 11 Employer contributions 6,186 661 225 3,771 127 96 3 Rollover contributions 5,802 123 83 825 131 6 - Employee withdrawals (79,684) (3,425) (580) (14,623) (945) (262) (48) Transfers between investment options (net) (71,127) (4,812) (2,240) 50,500 (13,034) (2,184) 852 Loan issues (6,582) (608) (171) (2,724) ( 23) (95) ( 6) Loan repayments 4,660 377 137 3,119 72 37 4 Loan interest 959 87 30 667 16 9 - Trust to Trust transfers (101) - - 200 - - - _________ _________ _________ _________ ___________ __________ _________ Change in net assets available for benefits for year (84,463) 3,436 1,753 120,642 (10,936) (1,764) 806 Net assets available for benefits at beginning of year 651,152 40,071 17,466 249,177 10,936 5,272 - _________ _________ _________ _________ ___________ __________ _________ Net assets available for benefits at end of year $566,689 $ 43,507 $ 19,219 $369,819 $ - $ 3,508 $ 806 ========= ========= ========= ========= =========== ========== ========= The accompanying notes are an integral part of these financial statements.
Continued on next page 9 PAGE 10 INVESTMENT PLAN FOR SALARIED EMPLOYEES OF CONSOL INC. STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS YEAR ENDED DECEMBER 31, 1997 (Continued) (Dollars in Thousands)
Merrill Merrill Aggressive Conservative Moderate Lynch Lynch Asset Asset Asset Fidelity Capital Basic Value Chrysler Allocation Allocation Allocation Low Price Fund Fund Stock Portfolio Portfolio Portfolio Stock Fund ======== =========== ======== ========== ========== ========== ========== Investment income $ 681 $ 1,025 $ 18 $ - $ - $ - $ 135 (dividends and interest) Net realized and unrealized appreciation of investments 720 1,672 18 14 14 5 17 Deposits and withdrawals: Employee deposits 228 328 - 3 1 6 13 Employer contributions 127 172 - 2 1 2 7 Rollover contributions 41 193 - - 9 37 - Employee withdrawals (175) (457) (26) - (43) - (70) Transfers between investment options (net) 920 4,018 (17) 461 833 361 2,999 Loan issues (55) (46) - - (4) - (5) Loan repayments 68 136 - 2 - 1 3 Loan interest 13 23 - - - - 1 Trust to Trust transfers - - - - - - - ________ ___________ ________ __________ ___________ __________ _________ Change in net assets available for benefits for year 2,568 7,064 (7) 482 811 412 3,100 Net assets available for benefits at beginning of year 5,412 5,992 369 - - - - ________ ___________ ________ __________ ___________ __________ _________ Net assets available for benefits at end of year $ 7,980 $ 13,056 $ 362 $ 482 $ 811 $ 412 $ 3,100 ======== =========== ======== ========== =========== ========== ========= Continued on next page
10 PAGE 11 INVESTMENT PLAN FOR SALARIED EMPLOYEES OF CONSOL INC. STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS YEAR ENDED DECEMBER 31, 1997 (Continued) (Dollars in Thousands)
Franklin Hotchkis & Merrill Merrill Small Cap Janus Janus Wiley Lynch Small Lynch MFS Total Growth Enterprise Mercury International Cap Index International Return Fund CL 1 Fund Fund Fund Trust Index Trust Fund ========== ========== ======= ============= =========== ============= ========= Investment income $ 109 $ 5 $ 31 $ 15 $ - $ - $ 1 (dividends and interest) Net realized and unrealized appreciation (depreciation) of investments (142) 6 (40) (58) 20 (4) - Deposits and withdrawals: Employee deposits 21 1 1 3 8 2 - Employer contributions 11 - 1 2 4 1 - Rollover contributions 19 - - - 9 - 1 Employee withdrawals ( 85) - (2) (48) (3) (86) - Transfers between investment options (net) 2,716 68 299 974 1,236 223 44 Loan issues - (5) (2) - (3) (1) - Loan repayments 10 2 3 7 6 1 - Loan interest 2 - 1 - 1 - - Trust to Trust transfer - - - - - - - __________ __________ ________ _____________ ___________ _____________ _________ Change in net assets available for benefits for year 2,661 77 292 895 1,278 136 46 Net assets available for benefits at beginning of year - - - - - - - __________ __________ ________ _____________ ___________ _____________ _________ Net assets available for benefits at end of year $ 2,661 $ 77 $ 292 $ 895 $ 1,278 $ 136 $ 46 ========== ========== ======== ============= =========== ============= ========= Continued on next page
11 PAGE 12 INVESTMENT PLAN FOR SALARIED EMPLOYEES OF CONSOL INC. STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS YEAR ENDED DECEMBER 31, 1997 (Continued) (Dollars in Thousands)
Fidelity Merrill Growth & Lynch AIM Equity Franklin Templeton AIM Value Income Growth Constellation Balance Foreign Fidelity Fund Fund Fund CL A Fund CL A Sheet Fund Fund ========= ======== ========== ============= ======== ========= ======== Investment income $ 58 $ 43 $ 340 $ 41 $ 55 $ 51 $ 21 (dividends and interest) Net realized and unrealized appreciation (depreciation) of investments (55) 60 (323) (70) (14) (81) (2) Deposits and withdrawals: Employee deposits 2 11 26 6 10 6 3 Employer contributions 2 4 21 3 6 3 1 Rollover contributions - - 2 - - - - Employee withdrawals (36) (104) (225) - (3) (48) - Transfers between investment options (net) 631 1,743 4,694 580 909 730 389 Loan issues - - (6) - (3) (1) Loan repayments 4 2 13 5 1 1 1 Loan interest - - 4 - - - - Trust to Trust transfers - - - - - - - __________ _________ __________ _____________ _________ __________ ________ Change in net assets available for benefits for year 606 1,759 4,546 565 961 662 412 Net assets available for benefits at beginning of year - - - - - - - __________ _________ __________ _____________ _________ __________ ________ Net assets available for benefits at end of year $ 606 $ 1,759 $ 4,546 $ 565 $ 961 $ 662 $ 412 ========== ========= ========== ============= ========= ========== ======== Continued on next page
12 PAGE 13 INVESTMENT PLAN FOR SALARIED EMPLOYEES OF CONSOL INC. STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS YEAR ENDED DECEMBER 31, 1997 (Continued) (Dollars in Thousands)
Fidelity Merrill Lynch Employer and Equity Franklin MFS Large Company Employee Income Custodian Research Stock Index Loan Contribution Total Fund Fund Inc. Fund Fund Fund Receivables All Funds ======== ========== ======== ============= ========= ============ ========== Investment income $ 20 $ 6 $ 22 $ 1 $ 1,829 $ 98 $ 60,411 (dividends and interest) Net realized and unrealized appreciation (depreciation) of investments 19 4 (13) 1,631 - - 82,185 Deposits and withdrawals: Employee deposits 5 1 4 225 - (7) 19,297 Employer contributions 2 2 2 125 - 16 11,586 Rollover contributions - 102 - - 7,383 Employee withdrawals (1) - (35) (687) (1,372) - (103,073) Transfers between investment options (net) 540 284 494 16,093 - (177) - Loan issues - - - (39) 10,379 - - Loan repayments - 1 7 81 (8,793) 32 - Loan interest - 1 - 15 (1,829) - - Trust to Trust transfers - - - - - - 99 _________ __________ _________ _____________ __________ ____________ ___________ Change in net assets available for benefits for year 585 299 481 17,547 214 (38) $ 77,888 Net assets available for benefits at beginning of year - - - - 22,157 3,516 1,011,520 _________ __________ _________ _____________ __________ ____________ ___________ Net assets available for benefits at end of year $ 585 $ 299 $ 481 $ 17,547 $ 22,371 $ 3,478 $1,089,408 ========= ========== ========= ============= ========== ============ ===========
13 PAGE 14 INVESTMENT PLAN FOR SALARIED EMPLOYEES OF CONSOL INC. STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS YEAR ENDED DECEMBER 31, 1996 (Dollars in Thousands)
Merrill Merrill Merrill Fixed Fidelity Barclays DuPont Lynch Lynch Lynch Income Magellan 3-Way Common Equity Index Global Balanced Fund Fund Fund Stock Trust Holdings Fund ======== ======== ======== ======== ============ ======== ========= Investment income $ 48,734 $ 6,260 $ 2 $ 6,162 $ - $ 320 $ 22 (dividends and interest) Net realized and unrealized appreciation (depreciation) of investments - (1,873) 1,898 69,920 1,567 231 4 Deposits and withdrawals: Employee deposits 11,056 1,493 478 5,398 213 183 9 Employer contributions 6,637 810 251 3,255 124 104 6 Rollover contributions 10,166 388 291 863 149 35 - Employee withdrawals (64,322) (2,185) (683) (9,111) (483) (339) (7) Transfers between investment options (net) 39,171 (137) 566 (45,387) 4,268 723 (796) Loan issues (6,959) (475) (154) (2,434) (62) (30) (2) Loan repayments 4,938 528 164 2,651 100 38 1 Loan interest 1,022 102 39 589 20 8 - Trust to Trust transfers 45 (8) - 510 - - - _________ _________ ________ _________ ____________ ________ _________ Change in net assets available for benefits for year 50,488 4,903 2,852 32,416 5,896 1,273 (763) Net assets available for benefits at beginning of year 600,664 35,168 14,614 216,761 5,040 3,999 763 _________ _________ ________ _________ ____________ ________ _________ Net assets available for benefits at end of year $651,152 $ 40,071 $17,466 $249,177 $ 10,936 $ 5,272 $ - ========= ========= ======== ========= ============ ======== ========= The accompanying notes are an integral part of these financial statements.
Continued on next page 14 PAGE 15 INVESTMENT PLAN FOR SALARIED EMPLOYEES OF CONSOL INC. STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS YEAR ENDED DECEMBER 31, 1996 (Continued) (Dollars in Thousands)
Merrill Merrill Employer and Lynch Lynch Employee Capital Basic Value Chrysler Loan Contribution Total Fund Fund Stock Fund Receivables All Funds ======== =========== ======== ======== ============ =========== Investment income $ 528 $ 394 $ 16 $ 1,770 $ 27 $ 64,235 (dividends and interest) Net realized and unrealized appreciation of investments 86 393 66 - - 72,292 Deposits and withdrawals: Employee deposits 218 196 - - (50) 19,194 Employer contributions 134 124 - - (51) 11,394 Rollover contributions 58 33 - - - 11,983 Employee withdrawals (364) (282) (53) (2,127) - (79,956) Transfers between investment options (net) 1,045 1,638 (18) - (1,073) - Loan issues (42) (67) - 10,225 - - Loan repayments 69 91 - (8,624) 44 - Loan interest 16 21 - (1,770) (47) - Trust to Trust transfers - - - (7) - 540 ________ ___________ ________ _________ ____________ ___________ Change in net assets available for benefits for year 1,748 2,541 11 (533) (1,150) 99,682 Net assets available for benefits at beginning of year 3,664 3,451 358 22,690 4,666 911,838 ________ ___________ ________ _________ ____________ ___________ Net assets available for benefits at end of year $ 5,412 $ 5,992 $ 369 $ 22,157 $ 3,516 $1,011,520 ======== =========== ======== ========= ============ ===========
The accompanying notes are an integral part of these financial statements. 15 PAGE 16 INVESTMENT PLAN FOR SALARIED EMPLOYEES OF CONSOL Inc. NOTES TO FINANCIAL STATEMENTS NOTE 1 - DESCRIPTION OF THE INVESTMENT PLAN: THE PLAN The Investment Plan for Salaried Employees of CONSOL Inc. (the "Plan") is a defined contribution plan established in 1953. Salaried, operations and maintenance, and, in certain circumstances, production and maintenance employees of CONSOL Inc. ("CONSOL") and participating employers are eligible to participate in the Plan on the first of the month following regular full-time employment. In addition, temporary employees are eligible to participate in the Plan upon completion of a period of 12 consecutive months, commencing upon their employment date or anniversary date thereof, during which the employee completes 1,000 or more hours of service. An eligible employee may, with certain restrictions, contribute up to 16 percent of monthly base pay to the Plan exclusive of supplemental make-up deposits. CONSOL and participating employers match these contributions, dollar for dollar, up to 6 percent of base pay (as defined by the Plan). Forfeitures of company matching contributions as a result of withdrawals by nonvested employees are used to offset future company matching contributions. Contributions may be made with before-tax or after-tax dollars. Nondis- crimination rules of the Internal Revenue Code require that the average contribution rates in both the before-tax and after-tax accounts of "Highly Compensated" employees (as defined by the Internal Revenue Service) should be limited by the average contribution rates of "Non-highly Compensated" employees. For the years ended December 31, 1997 and 1996, the after-tax contribution maximum including supplemental make-up deposits was 19 percent and the before-tax contribution maximum was 15 percent. In addition, subject to certain limitations, a participant is allowed to make lump sum savings deposits in cash to the Plan at any time. Plan participants generally become vested upon completion of five consecutive years of participation in the Plan or five cumulative years of service. Participants who retire from active service may elect to withdraw their entire account in a lump sum, to defer withdrawal until April 1 of the calendar year following the year in which the participant attains age 70 1/2, or to elect an option to have their account distributed over a period of not less than 2 years or more than a period which would pay the account balance during the employee's actuarial life in either a fixed or variable amount. Before-tax deposits may be withdrawn only in the event of an employee's retirement, death, termination, attainment of age 59 1/2 or defined hardship. Participants may borrow up to one-half of their nonforfeitable account balances subject to certain minimum and maximum loan limitations. Such loans are repayable over periods of 12 to 60 months (120 months maximum if for the purchase of a principal residence) and bear an interest rate equal 16 PAGE 17 to the average rate charged by selected major banks for secured personal loans. A participant has the right to repay the loan in full at any time without penalty. INVESTMENT FUNDS The following investment funds have been established with trustees for the investment of employee savings and CONSOL's participating employers' contributions. The nature of the investments maintained in each fund is 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. The fund's blended rate of return for the 12 months ended December 31, 1997 and December 31, 1996 was 7.62% and 7.99%, respectively. Fidelity Magellan Fund A growth mutual fund offered through Fidelity Investments. Barclays 3-Way Fund Asset Allocation Fund with money invested by BZW Global Investors among stocks, bonds and cash (money market). DuPont Common Stock Common stock of E. I. DuPont de Nemours and Company ("DuPont"). DuPont owns 50% of the stock of CONSOL Energy Inc., the parent of CONSOL. Loan Fund Participant loans - amounts transferred from any of the investment options that are loaned to participants. Merrill Lynch Mutual Funds A group of seven (1997) different mutual funds each with its own investment objective offered through Merrill Lynch. Templeton Growth Fund This fund invests in common and/or preferred stocks of companies of any nation and certain debt securities, rated or unrated, such as convertible bonds selling at a discount. The fund attempts to reduce risk by investing in a highly diversified portfolio. 17 PAGE 18 Templeton Foreign Fund This fund invests in common and/or preferred stocks of companies outside the United States. It can also invest in debt obligations of governments outside the United States. The fund attempts to reduce risk by investing in a highly diversified portfolio. Aggressive Asset Allocation This option has a 20% allocation to the Portfolio Fixed Income Fund, 40% Merrill Lynch Equity Index Trust, 20% Merrill Lynch Small Cap Index Trust and 20% Merrill Lynch International Index Trust. Conservative Asset Allocation This option has a 70% allocation to the Fixed Income Fund, 20% Merrill Lynch Equity Index Trust and 10% Merrill Lynch Small Cap Index Trust. This option is for those investors who are willing to accept lower returns to lessen risk. Moderate Asset Allocation The Moderate option is for those investors who seek higher growth and who may be willing to accept the higher level of risk. Its allocation is 50% Fixed Income Fund, 20% Merrill Lynch Equity Index Trust, 20% Merrill Lynch Small Cap Index Trust and 10% Merrill Lynch International Index Trust. Fidelity Low Priced Stock Fund The fund invests mainly in low-priced common stocks ($25 or less at time of purchase). The fund is designed for aggressive investors who believe low-priced stocks may be undervalued and offer the potential for growth. Fidelity Growth and Income Fund The fund invests mainly in equity securities of companies that pay current dividends and offer potential growth of earnings. Fidelity Equity Income Fund The fund invests mainly in income-producing equity securities. Fidelity Fund The fund invests mainly in equity securities. The fund is designed for those looking for long-term growth potential and some current income from equity and bond investments. 18 PAGE 19 Franklin Small Cap Growth The fund invests primarily in equity Fund CL 1 securities of small capitalization growth companies which advisers believe to be positioned for rapid growth in revenues or earnings and assets. Franklin Balance Sheet The fund seeks high total return and is designed for long-term investors and not as a trading vehicle. Invests in securities that are undervalued in the marketplace, and may include investments in smaller capitalization companies. Franklin Custodian Fund Inc. The fund invests primarily in common stocks or convertible securities, some of which may yield little or no current income. May include investments in foreign securities and smaller capitalization companies. Janus Enterprise Fund The fund is a nondiversified fund that invests primarily in common stocks, with an emphasis on securities issued by medium-sized companies. Janus Mercury Fund The fund is a diversified fund that invests primarily in common stocks of companies of any size. Hotchkis and Wiley The fund invests in international equity International Fund securities in at least three non-U.S. markets. Ordinarily, the fund will invest in equity securities issued by companies located in some or all of the developed foreign equity markets. MFS Total Return Fund The fund invests in the common stocks or securities convertible into common stocks of companies believed to possess better-than-average prospects for long-term growth. Investments may include any size growth or value stocks, and may also include international equities. MFS Research Fund The fund invests in the common stocks or securities convertible into common stocks of companies believed to possess better than average prospects for long-term growth. AIM Value Fund The fund invests chiefly in common stocks, convertible bonds and convertible preferred 19 PAGE 20 stocks, but also may invest in preferred stocks and debt securities. The fund may invest up to 25% of its total assets in foreign securities. AIM Equity Constellation The fund seeks to invest in securities of Fund, CL A companies which fund management considers to have experienced above-average and consistent long-term growth in earnings, as well as companies that are currently experiencing a dramatic increase in profits. The shares of Chrysler Corporation Common Stock are held by some CONSOL Plan participants who elected to exercise their right as Plan participants to retain the stock as of September 15, 1966. This investment option is no longer available to Plan participants for additional investments. ADMINISTRATION The designated trustee of all the aforementioned funds is Merrill Lynch Trust Company of America (Merrill Lynch). The administration of the Plan is vested in the Board of Directors of CONSOL. All recordkeeping and trustee fees of the Plan are paid by CONSOL. The administrative fees for the Fixed Income Fund are netted against the investment income of this fund. While CONSOL has not expressed any intent to terminate the Plan, it is free to do so at any time. In the event of termination, each participant automatically becomes vested to the extent of the balance in his or her individual account. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Investment Valuation and Income Recognition - For financial reporting purposes, the assets of the Plan are reflected on the accrual and fair value basis of accounting. The Fixed Income Fund guaranteed investment contracts (GIC), separate account portfolios (SAP) and synthetic guaranteed investment contracts (SYN) are fully benefit responsive and thus, are stated at cost plus accrued interest, using the contracted interest rates applied to the daily account balances. Investments in common stock and mutual funds are stated at fair value based on publicly quoted market prices. Investments in the Merrill Lynch Small Cap Index Fund, International Index Trust, Large Company Stock Index Fund, Barclays 3-Way Fund, Aggressive Asset Allocation, Conservative Asset Allocation and Moderate Asset Allocation Portfolios are stated at the fair value of all underlying assets as reported by the applicable custodian. The fair value of loans to participants in the Loan Fund represent the outstanding principal balances of the loans. 20 PAGE 21 The unit value or price of all investments reflect the dollar amount at which participant's accounts are valued at the end of the period reported. There is no unit value for the Loan Fund since loans are identified directly with participants' accounts. Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis. Gains and losses on the sale of the DuPont Common Stock are based on average cost of the securities sold and are recognized on the trade date. Brokerage commissions and Securities Exchange Commission fees in connection with the purchase and sale of DuPont Common Stock and the sale of Chrysler Corporation Common Stock are added to the cost thereof or deducted from the sales proceeds derived therefrom. Use of Estimates - The preparation of 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. Actual results could differ from those estimates. NOTE 3 - INVESTMENTS The following presents the Plan's investments: December 31, 1997 December 31, 1996 Fixed Income Fund...................... $ 566,689 $ 651,152 DuPont Common Stock ................... 369,819 249,177 Fidelity Magellan Fund ................ 43,507 40,071 Barclays 3-Way Fund ................... 19,219 17,466 Merrill Lynch Mutual Funds ............ 48,051 27,612 Chrysler Corporation Common Stock ..... 362 369 AIM Equity Constellation Fund CL A..... 565 MFS Total Return Fund.................. 46 Franklin Small Cap Growth Fund CL 1.... 2,661 Janus Enterprise Fund.................. 77 Janus Mercury Fund..................... 292 Hotchkis & Wiley International Fund.... 895 Templeton Growth Fund.................. 806 AIM Value Fund......................... 606 Fidelity Growth and Income Fund........ 1,759 Franklin Balance Sheet................. 961 Templeton Foreign Fund................. 662 Fidelity Fund.......................... 412 Aggressive Asset Allocation Portfolio.. 482 Conservative Asset Allocation Portfolio 811 Moderate Asset Allocation Portfolio.... 412 Fidelity Low Priced Stock Fund......... 3,100 Fidelity Equity Income Fund............ 585 Franklin Custodian Fund Inc............ 299 MFS Research Fund...................... 481 Loans to Participants ................. 22,371 22,157 ---------- ---------- Total Investments $1,085,930 $1,008,004 ========== ========== 21 PAGE 22 The underlying assets of the Fixed Income Fund consist of (GIC), (SYN) and separate account guaranteed investment contracts (SAGIC) and other short-term investment securities. These contracts are jointly owned by the Plan and the Thrift Plan for Employees of Conoco Inc. Conoco Inc. is a wholly owned subsidiary of DuPont. The balance of all investment contracts are allocated to the two plans by Merrill Lynch based on the relationship of the Plan's Fixed Income Fund participant balances to total Fixed Income Fund participant balances. The investment contracts are entered into based on an evaluation of the credit risk of the contract issuers and/or third-party guarantors. Collateral is generally not provided. The investment contracts and short-term investments of the Fixed Income Fund consist of the following:
Description December 31, 1997 December 31, 1996 ----------- ----------------- ----------------- CDC Inv. Mgmt. Corp.--7.10% ............................... $ 25,966 $ 12,549 CDC Inv. Mgmt. Corp.--6.80% ............................... - 10,348 Deutsche Bank--6.34% ...................................... 32,827 31,773 Aetna Life Insurance Company--7.53%........................ 36,947 - Aetna Life Insurance Company--7.76% ....................... - 35,400 Aetna Life Insurance Company--9.32% ....................... 12,980 20,387 Aetna Life Insurance Company--9.89% ....................... 17,299 22,705 Bankers Trust--5.74% ...................................... 31,007 30,192 Metropolitan Life Ins. Co.--7.61% ......................... 66,382 63,625 New York Life Insurance Company--9.11% .................... 12,838 20,203 New York Life Insurance Company--9.71% .................... 13,447 21,046 Providian Capital Management Family--6.96% ................ - 39,832 Principal Mutual Life Insurance Company--9.10% ............ 12,423 19,551 Principal Mutual Life Insurance Company--9.50% ............ 6,863 19,369 Prudential Insurance Company of America--8.26% ............ 84,672 60,539 Prudential Insurance Company of America--7.08% ............ - 59,692 Prudential Insurance Company of America--9.66% ............ 6,954 19,600 Prudential Insurance Company of America--9.96% ............ 7,132 20,047 Bankers Trust--7.69% ...................................... 24,169 23,112 The Travelers Insurance Companies--9.66% .................. 16,323 21,468 Citibank 7.40% ............................................ 15,341 14,714 Union Bank of Switzerland--6.67% .......................... 41,183 39,742 JP Morgan--6.17% .......................................... 34,959 34,073 Capital Holding Corp.--6.59%............................... 41,314 - Deutsche Bank--6.58%....................................... 19,844 - -------- -------- Total Investment Contracts $560,870 $639,967 Short Term Investments (Incl. Merrill Lynch Government Fund) 5,819 11,185 TOTAL INVESTMENT IN FIXED INCOME $566,689 $651,152 ======== ========
22 PAGE 23 The aggregate crediting rates for all contracts as of December 31, 1997 and December 31, 1996 were 7.59% and 7.84%, respectively. 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. Guaranteed investment contracts contain penalty provisions or other adjustments for early termination of the contract not related to participant initiated events. The carrying values and fair values of investment contracts as of December 31, 1997 are as follows: Carrying Value (contract value) Fair Value Guaranteed Investment Contracts $106,260 $109,011 Synthetic Guaranteed Investment Contracts 303,555 311,181 Separate Account Guaranteed Investment Contracts 151,055 158,788 -------- -------- $560,870 $578,980 ======== ========= Synthetic guaranteed investment contracts are supported by wrapper contracts which guarantee the contract value of the synthetic guaranteed investment contracts for participant-initiated withdrawal events. Participants investing in the Fixed Income Fund, Barclays 3-Way Fund, Merrill Lynch Large Company Stock Index Fund, Merrill Lynch Small Cap Index Trust, Merrill Lynch International Index Trust, Aggressive Asset Allocation, Conservative Asset Allocation and Moderate Asset Allocation Portfolios are assigned units at the time of investment based on the net asset value per unit. The following table presents the number of units outstanding and related net asset value per unit at each month-end.
Merrill Lynch Large Fixed Income Fund Barclays 3-Way Fund Company Stock Index Fund Units Unit Units Unit Units Unit Outstanding Value Outstanding Value Outstanding Value January 31, 1997 6,420,272 $101.56 1,043,400 $16.72 252,537 $52.22 February 28, 1997 6,369,804 102.14 1,061,903 16.77 274,267 52.62 March 31, 1997 6,300,426 102.78 1,076,671 16.20 257,018 50.45 April 30, 1997 6,155,811 103.41 1,059,798 16.85 256,211 53.44 May 31, 1997 6,132,094 104.03 1,071,820 17.43 258,925 56.69 June 30, 1997 6,014,608 104.69 1,046,307 17.99 258,326 59.21 July 31, 1997 5,846,486 105.34 1,014,986 19.22 275,387 63.92 August 31, 1997 5,634,688 105.95 984,371 18.38 279,451 60.33 September 30, 1997 5,556,144 106.63 982,324 19.15 274,520 63.63 October 31, 1997 5,323,992 107.29 953,251 19.13 270,402 61.50 November 30, 1997 5,296,492 107.90 950,365 19.77 265,941 64.34 December 31, 1997 5,217,495 108.61 954,292 20.14 268,129 65.44
23 PAGE 24
Merrill Lynch Merrill Lynch Aggressive Asset Small Cap Index Trust International Index Trust Allocation Portfolio Units Unit Units Unit Units Unit Outstanding Value Outstanding Value Outstanding Value January 31, 1997 - - - - - - February 28, 1997 - - - - - - March 31, 1997 - - - - - - April 30, 1997 - - - - - - May 31, 1997 - - - - - - June 30, 1997 - - - - - - July 31, 1997 14,982 $10.56 8,619 $10.22 11,661 $10.45 August 31, 1997 70,626 10.74 6,913 9.47 16,721 10.11 September 30, 1997 103,228 11.48 8,012 10.07 20,150 10.61 October 31, 1997 110,821 10.98 13,222 9.30 47,251 10.23 November 30, 1997 112,720 10.90 13,271 9.27 45,525 10.41 December 31, 1997 115,248 11.09 14,427 9.38 45,680 10.55 Conservative Asset Moderate Asset Allocation Portfolio Allocation Portfolio Units Unit Units Unit Outstanding Value Outstanding Value January 31, 1997 - - - - February 28, 1997 - - - - March 31, 1997 - - - - April 30, 1997 - - - - May 31, 1997 - - - - June 30, 1997 - - - - July 31, 1997 12,995 $10.24 6,455 $10.31 August 31, 1997 14,560 10.18 9,619 10.18 September 30, 1997 41,941 10.41 37,564 10.53 October 31, 1997 144,529 10.34 45,779 10.32 November 30, 1997 77,338 10.47 44,110 10.43 December 31, 1997 76,714 10.57 39,056 10.54
NOTE 4 - INCOME TAXES STATUS The Plan received a favorable determination letter from the Internal Revenue Service with respect to the 1994 amended plan. Management believes the Plan is qualified under Section 401(a) of the Internal Revenue Code and therefore the trust is exempt from taxation under Section 501(a). Participants in the Plan are not subject to federal income taxes on account balances arising from employer contributions, before-tax employee deposits or accrued income until distributions or withdrawals are made. 24 PAGE 25 NOTE 5 - 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: December 31, 1997 1996 __________ __________ (Dollars in Thousands) Net assets available for benefits per the financial statements $1,089,408 $1,011,520 Includes: Amounts allocated to withdrawing participants reported as asset reductions per the financial statements 119 219 Total Assets per the Form 5500: $1,089,527 $1,011,739 =========== ========== Amounts payable to withdrawing participants are recorded on the Form 5500 as a liability for benefit claims that have been processed and approved for payment prior to December 31 but not yet paid as of that date. For financial statement purposes the amounts were deducted from the respective assets. 25 PAGE 26 SCHEDULE I INVESTMENT PLAN FOR SALARIED EMPLOYEES OF CONSOL INC. ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1997 (Dollars in Thousands)
- -------------------------------------------------------------------------------------------------------- Identity of Issue, Borrower Current Lessor or Similar Party Description of Investment Cost Value - -------------------------------------------------------------------------------------------------------- E. I. DuPont de Nemours & Company Common Stock $ 208,671 $ 369,819 ========= ========= Merrill Lynch Small Cap Index Trust $ 1,248 $ 1,278 International Index Trust 137 136 Global Holdings Fund 3,556 3,508 Capital Fund 7,153 7,980 Basic Value Fund 11,072 13,056 Large Company Stock Index Fund 16,077 17,547 Growth Fund CL A 4,890 4,546 $ 44,133 $ 48,051 ========= ========= Capital Holding Corp. SYNGIC, 6.59% $ 41,314 $ 41,314 Aetna Life Insurance Company GIC, 9.32% 12,980 12,980 GIC, 9.89% 17,299 17,299 SYNGIC, 7.53% 36,947 36,947 Banker's Trust SYNGIC, 5.74% 31,007 31,007 SYNGIC, 7.69% 24,169 24,169 CDC Inv. Mgmt. Corp. SYNGIC, 7.10% 25,966 25,966 Deutsche Bank SYNGIC, 6.34% 32,827 32,827 SYNGIC, 6.58% 19,844 19,844 Metropolitan Life Insurance Company SAGIC, 7.61% 66,382 66,382 New York Life Insurance Company GIC, 9.11% 12,838 12,838 GIC, 9.71% 13,447 13,447 Principal Mutual Life Insurance Company GIC, 9.10% 12,423 12,423 GIC, 9.50% 6,863 6,863 Prudential Insurance Company of America SAGIC, 8.26% 84,672 84,672 GIC, 9.66% 6,954 6,954 GIC, 9.96% 7,132 7,132 The Travelers Insurance Companies GIC, 9.66% 16,323 16,323 Citibank SYNGIC, 7.40% 15,341 15,341 Union Bank of Switzerland SYNGIC, 6.67% 41,183 41,183 J.P. Morgan SYNGIC, 6.17% 34,959 34,959 Short Term Investments (Incl. Merrill Lynch Government Fund) 5,819 5,819 $ 566,689 $ 566,689 ========= ========== Aggressive Asset Allocation Portfolio $ 482 $ 482 ========= ========== Conservative Asset Allocation Portfolio $ 811 $ 811 ========= ========== Moderate Asset Allocation Portfolio $ 412 $ 412 ========= ==========
26 PAGE 27 SCHEDULE I INVESTMENT PLAN FOR SALARIED EMPLOYEES OF CONSOL INC. ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES (Continued) DECEMBER 31, 1997 (Dollars in Thousands)
- -------------------------------------------------------------------------------------------------------- Identity of Issue, Borrower Current Lessor or Similar Party Description of Investment Cost Value - -------------------------------------------------------------------------------------------------------- Fidelity Investments Fidelity Fund $ 414 $ 412 Equity Income Fund 572 585 Magellan Fund 35,314 43,507 Low Priced Stock Fund 3,096 3,100 Growth & Income Fund 1,714 1,759 $ 41,110 $ 49,363 ========= ========= Chrysler Corporation Common Stock $ 77 $ 362 ========= ========= BZW Global Investors Barclays 3-Way Fund $ 11,452 $ 19,219 ========= ========= Franklin Value Investors Trust Small Cap Growth CL 1 $ 2,802 $ 2,661 Balance Sheet 995 961 Custodian Fund Inc. 295 299 $ 4,092 $ 3,921 ========= ========= Franklin Templeton Growth Fund $ 925 $ 806 Foreign Fund 740 662 $ 1,665 $ 1,468 ========= ========= Janus Investments Janus Enterprise Fund $ 79 $ 77 Janus Mercury Fund 331 292 $ 410 $ 369 ========= ========= Hotchkis and Wiley International Fund $ 952 $ 895 ========= ========= MFS Investment Management Total Return Fund $ 46 $ 46 Research Fund 494 481 $ 540 $ 527 ========= =========
27 PAGE 28 SCHEDULE I INVESTMENT PLAN FOR SALARIED EMPLOYEES OF CONSOL INC. ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES (Continued) DECEMBER 31, 1997 (Dollars in Thousands)
- -------------------------------------------------------------------------------------------------------- Identity of Issue, Borrower Current Lessor or Similar Party Description of Investment Cost Value - -------------------------------------------------------------------------------------------------------- AIM Value Fund $ 663 $ 606 Equity Constellation Fund CL A 638 565 $ 1,301 $ 1,171 ========= ========= Plan Participants Loans (interest rates ranging $ 22,371 $ 22,371 from 8.25% to 8.75%) ========= =========
28 PAGE 29 SCHEDULE II INVESTMENT PLAN FOR SALARIED EMPLOYEES OF CONSOL INC. ITEM 27b - SCHEDULE OF LOANS IN DEFAULT AS OF DECEMBER 31, 1997
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Description of Loan Action Amount ---------------------------- Taken on Original Received During Unpaid Loan Overdue Identity and Amount Reporting Year Balance at Loan Loan Interest Amount Overdue Loan Address of Obligor of Loan Principal Interest End of Year Began on Payoff Rate Principal Interest Amounts - ----------------------- ---------- --------- --------- ----------- -------- -------- -------- --------- -------- -------- Larry Calhoun $ 5,000.00 $ 856.19 $ 157.81 $ 1,891.54 05/03/94 05/03/99 8.00% $ 178.17 $ 24.63 R. D. #2 Cottage Lane 8,000.00 1,167.98 454.42 6,167.59 05/13/96 05/13/00 8.00 243.05 81.43 Rayland, OH 43943 David F. Casini 10,500.00 426.20 220.12 10,073.80 07/18/97 07/18/02 8.50 144.08 71.36 9 Morgantown Road Point Marion, PA 15474 Robert D. Gielow 7,500.00 1,555.36 117.52 744.87 03/24/93 03/24/98 8.00 147.11 4.97 706 Chippendale Steeleville, IL 62288 James R. Hall 5,000.00 697.56 322.44 4,302.44 11/25/96 11/25/01 8.25 145.34 58.66 186 South Roberts Drive 2,000.00 198.06 54.58 1,801.94 05/30/97 05/30/00 8.50 101.15 25.17 Prestonsburg, KY 41653 James L. Hamrick 6,200.00 981.30 409.98 4,879.81 07/24/96 07/24/01 8.25 92.93 33.55 P. O. Box 797 Cowen, WV 26206 James M. Knaus 8,000.00 1,274.90 520.30 6,176.61 06/20/96 06/20/01 8.25 120.74 42.46 1755 Morris Street Washington, PA 15301 Richard L. Kovalski 18,530.00 2,873.38 1,018.17 11,261.85 06/14/95 06/14/00 9.50 602.46 175.94 608 Township Road 15 5,000.00 1,311.96 260.84 3,065.01 06/12/96 06/12/99 8.25 273.35 41.21 Rayland, OH 43943 6,500.00 1,654.93 397.07 4,685.91 10/07/96 10/07/99 8.50 345.24 65.16 10,000.00 710.25 275.83 9,289,75 05/02/97 05/02/01 8.50 362.72 130.32 8,500.00 208.15 60.21 8,291.85 08/14/97 08/14/00 8.50 420.74 115.98
Continued on next page 29 PAGE 30 SCHEDULE II INVESTMENT PLAN FOR SALARIED EMPLOYEES OF CONSOL INC. ITEM 27b - SCHEDULE OF LOANS IN DEFAULT AS OF DECEMBER 31, 1997 (Continued)
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Description of Loan Action Amount ---------------------------- Taken on Original Received During Unpaid Loan Overdue Identity and Amount Reporting Year Balance at Loan Loan Interest Amount Overdue Loan Address of Obligor of Loan Principal Interest End of Year Began on Payoff Rate Principal Interest Amounts - ----------------------- ---------- --------- --------- ----------- -------- -------- -------- --------- -------- -------- Joseph D. Marchani $10,000.00 $1,685.70 $ 139.50 $1,379.97 03/26/93 03/26/98 8.00% $584.68 $ 23.72 401 W. Brentwood Ave. 10,000.00 1,545.00 269.40 3,769.12 04/25/94 04/25/99 7.75 535.21 69.59 Moundsville, WV 26041 5,000.00 696.47 226.93 3,169.54 07/19/95 07/19/00 8.50 242.16 65.64 Deborah L. McChesney 4,500.00 1,396.38 166.50 1,366.01 08/07/95 08/07/98 8.50 132.40 9.68 114 Lutes Road 6,200.00 1,311.04 353.92 4,103.20 04/29/96 04/29/00 8.00 124.01 27.35 Finleyville, PA 15332 Brian J. Michel 1,000.00 77.07 13.89 922.93 08/27/97 08/27/99 8.50 38.94 6.54 1105 1/2 10th Ave. Fultonn, IL 61252 Johnnie A. Milam 15,853.00 2,679.78 898.30 10,050.11 08/18/95 08/18/00 8.50 254.09 71.19 Route 3 Box 282-D 14,228.00 2,939.91 899.53 10,272.79 07/12/96 07/12/00 8.25 278.41 70.63 Princeton, WV 24740 William J. Moore 6,500.00 961.48 356.52 4,814.03 03/28/96 03/28/01 8.00 200.08 63.52 314 E. Franklin Street 4,500.00 304.76 159.64 4,195.24 04/30/97 04/30/02 8.75 125.03 60.73 Apt. 1-B 2,400.00 08/20/97 08/20/02 8.50 65.17 33.31 DuQuoin, IL 62832 Gary E. Myers 23,200.00 4,736.93 941.47 8,813.54 07/18/94 07/18/99 8.25 412.61 60.59 R. D. #1 Box 402A 20,500.00 2,029.24 559.40 18,470.76 06/25/97 06/25/00 8.50 516.33 130.83 Smithfield, PA 15478 Jeffrey S. Myers 20,000.00 3,404.37 699.23 7,979.20 06/06/94 06/06/99 8.50 710.19 110.53 Rt. 1 Box 76A 4,000.00 601.74 214.26 2,782.27 12/06/95 12/06/00 8.25 125.37 38.68 Aurora, WV 26705 Stephen L. Scott 35,573.00 14,372.15 499.39 287.78 08/01/95 08/01/00 8.50 287.78 - 72 High Street Cameron, WV 26033
Continued on next page 30 PAGE 31 SCHEDULE II INVESTMENT PLAN FOR SALARIED EMPLOYEES OF CONSOL INC. ITEM 27b - SCHEDULE OF LOANS IN DEFAULT AS OF DECEMBER 31, 1997 (Continued)
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Description of Loan Action Amount ---------------------------- Taken on Original Received During Unpaid Loan Overdue Identity and Amount Reporting Year Balance at Loan Loan Interest Amount Overdue Loan Address of Obligor of Loan Principal Interest End of Year Began on Payoff Rate Principal Interest Amounts - ----------------------- ---------- --------- --------- ----------- -------- -------- -------- --------- -------- -------- Michael E. Tacosik $13,000.00 $2,553.12 $636.08 $7,833.30 12/06/95 12/06/99 8.25% $ 531.96 $105.88 4544 Primrose Road Pinckneyville, IL 62274 John M. Terravecchia 4,812.00 - - 117.23 09/14/93 09/13/95 7.75 117.23 - 295 Fourth Street 1,997.00 - - 1,919.78 01/12/94 01/12/96 7.75 1,919.78 152.98 Monongahela, PA 15417 3,044.00 - - 3,044.00 04/20/95 03/20/97 9.00 3,044.00 293.92 Ralph E. Ward 14,423.00 786.74 101.02 4,228.00 06/21/94 06/21/99 8.50 2,464.78 198.50 Box 173 7,700.00 332.31 138.93 6,514.22 10/12/95 10/12/00 8.25 1,038.91 374.81 Crab Orchard, WV 25827 7,500.00 312.77 146.23 6,880.82 08/07/96 08/07/01 8.25 977.84 399.16 10,337.00 422.50 213.74 9,775.64 10/09/96 10/09/01 8.50 1,474.77 433.95 6,847.00 307.03 119.45 5,103.98 03/28/95 03/28/00 9.00 963.42 316.02
[FN] NOTE: None of the above identified obligors is known to be a party in interest to the Investment Plan for Salaried Employees of CONSOL Inc. The loans are funded by the liquidation of specified investments within an individual's account; once these loans are issued, they are not renegotiated at any time prior to the loan payoff date. The action taken on the overdue loan amounts is as follows: Repayment schedules have been established whereby monies are deducted from their biweekly or monthly compensation to fund loan payments that are in arrears. For plan year 1998, loans have been reclassified as withdrawals from the CONSOL Inc Investment Plan. No action was able to be taken on this loan because it was issued from the Before-Tax Account and the individual is younger than age 59 1/2. The obligor will continue to accrue unpaid interest (in addition to the loan principal and interest that is owed) until the earlier of the following events occur: he terminates employment and/or becomes 59 1/2. 31 PAGE 32 SCHEDULE III INVESTMENT PLAN FOR SALARIED EMPLOYEES OF CONSOL INC. ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS YEAR ENDED DECEMBER 31, 1997 (Dollars in Thousands)
________________________________________________________________________________________________________________________ Current Value Number Cost of Asset on Identity of of Purchase Selling of Transaction Party Involved Description of Asset Transactions Price Price Asset Date Net Gain (Loss) ____________________ _____________________ ____________ ________ _______ ___________ ___________ _______________ Category 1 - Individual Transactions in Excess of 5% of Plan Assets - PURCHASES CDC Inv. Mgmt. Corp. SYNGIC, 7.10% 1 $ 51,332 $ - $ 51,332 $ 51,332 $ - Prudential Insurance SAGIC, 8.26% 1 345,199 - 345,199 345,199 - Company of America Prudential Insurance SAGIC, 7.08% 1 85,566 - 85,566 85,566 - Company of America Category 3 - Series of Securities Transactions - PURCHASES Deutsche Bank SYNGIC, 6.34% 28 386,341 - 386,341 386,341 - Merrill Lynch E.I. DuPont de Nemours 761 154,629 - 154,629 154,629 - & Company Common Stock Merrill Lynch Government Fund 64 206,103 - 206,103 206,103 - Merrill Lynch Premier Fund 274 448,097 - 448,097 448,097 - Category 1 - Individual Transactions in Excess of 5% of Plan Assets - SALES Prudential Insurance SAGIC, 8.26% 1 - 115,000 115,000 115,000 - Company of America Prudential Insurance SAGIC, 8.26% 1 - 68,674 68,674 68,674 - Company of America Continued on next page
32 PAGE 33 SCHEDULE III INVESTMENT PLAN FOR SALARIED EMPLOYEES OF CONSOL INC. ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS YEAR ENDED DECEMBER 31, 1997 (continued) (Dollars in Thousands)
________________________________________________________________________________________________________________________ Current Value Number Cost of Asset on Identity of of Purchase Selling of Transaction Party Involved Description of Asset Transactions Price Price Asset Date Net Gain (Loss) - -------------------- --------------------- ------------ -------- ------- -------- ------------ --------------- Prudential Insurance SAGIC, 7.08% 1 - $321,320 $321,320 $321,320 $ - Company of America Category 3 - Series of Securities Transactions - SALES CDC Inv. Mgmt. Corp. SYNGIC, 6.80% 2 - 58,572 58,572 58,572 - Deutsche Bank SYNGIC, 6.34% 35 - 471,785 471,785 471,785 - Merrill Lynch E. I. DuPont de Nemours 739 - 97,336 70,814 97,336 26,522 & Company Common Stock Merrill Lynch Government Fund 185 - 289,199 289,199 289,199 - Merrill Lynch Premier Fund 401 - 547,024 547,024 547,024 - Principal Mutual GIC, 9.50% 12 - 54,571 54,571 54,571 - Life Insurance Co. Prudential Insurance SAGIC, 8.26% 2 - 183,674 183,674 183,674 - Company of America Prudential Insurance GIC, 9.96% 13 - 56,605 56,605 56,605 - Company of America Prudential Insurance GIC, 9.66% 13 - 55,273 55,273 55,273 - Company of America
NOTE: All of the above transactions except for the DuPont Stock Fund represent transactions for the Conoco & CONSOL Plans on a commingled basis. 33 PAGE 34 EXHIBIT INDEX Exhibit Number Description ------- ----------- 24 Consent of Independent Auditors 34 PAGE 35 SIGNATURE Exhibit 24 CONSENT OF INDEPENDENT AUDITORS We hereby consent to the incorporation by reference in the Prospectus constituting part of the Registration Statement on Form S-8 (No. 33-26216) of E. I. DuPont de Nemours and Company of our report dated June 6, 1997 appearing on Page 4 of the Investment Plan for Salaried Employees of CONSOL Inc. Annual Report on this Form 11-K for the year ended December 31, 1997. ERNST & YOUNG, LLP Pittsburgh, Pennsylvania June 25, 1998 35 -----END PRIVACY-ENHANCED MESSAGE-----