-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, AYcamA1g1oK92Kev35sQWfDCweIN6BePI3tQqyCUrfNuLyFhVLbtFPCjzUdwapNg QtzmlmpD4hmOwKUmiBWHkg== 0000950134-95-001496.txt : 199506300000950134-95-001496.hdr.sgml : 19950630 ACCESSION NUMBER: 0000950134-95-001496 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19941231 FILED AS OF DATE: 19950629 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: K N ENERGY INC CENTRAL INDEX KEY: 0000054502 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS TRANSMISSION & DISTRIBUTION [4923] IRS NUMBER: 480290000 STATE OF INCORPORATION: KS FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06446 FILM NUMBER: 95550568 BUSINESS ADDRESS: STREET 1: 370 VAN GORDON STREET STREET 2: PO BOX 281304 CITY: LAKEWOOD STATE: CO ZIP: 80228-8304 BUSINESS PHONE: 3039891740 FORMER COMPANY: FORMER CONFORMED NAME: KN ENERGY INC DATE OF NAME CHANGE: 19920430 FORMER COMPANY: FORMER CONFORMED NAME: KANSAS NEBRASKA NATURAL GAS CO INC DATE OF NAME CHANGE: 19830403 11-K 1 FORM 11-K 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 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, 1994 Commission File Number 1-6446 ------------ K N Energy, Inc. Profit Sharing and Savings Plan K N Energy, Inc. P. O. Box 281304 Lakewood, Colorado 80228-8304 Page 1 of 24 2 The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees have duly caused this annual report to be signed by the undersigned thereunto duly authorized. 401(k) RETIREMENT SAVINGS PLAN AND TRUST By: /S/ E. Wayne Lundhagen ----------------------------------- Name: E. Wayne Lundhagen ----------------------------------- Title: Trustee ----------------------------------- Date: June 29, 1995 Page 2 of 24 3 K N ENERGY, INC. 401 (K) RETIREMENT SAVINGS PLAN AND TRUST INDEX TO FINANCIAL STATEMENTS AND SCHEDULES
PAGE ---- Report of Independent Public Accountants 5 Consent of Independent Public Accountants 6 Statements of Financial Condition - December 31, 1994 and 1993 8 Statements of Income and Changes in Plan Equity for the Years Ended December 31, 1994, 1993 and 1992 9 Notes to Financial Statements 10
Page 3 of 24 4 K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN FINANCIAL STATEMENTS AS OF DECEMBER 31, 1994 AND 1993 TOGETHER WITH AUDITORS' REPORT Page 4 of 24 5 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Plan Administrator, K N Energy, Inc. Profit Sharing and Savings Plan: We have audited the accompanying statements of financial condition of the K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN (the "Plan"), as of December 31, 1994 and 1993, and the related statements of income and changes in plan equity for each of the three years in the period ended December 31, 1994. These financial statements and supplemental schedules referred to below are the responsibility of K N Energy, Inc. (the "Plan Administrator"). Our responsibility is to express an opinion on these financial statements and supplemental schedules based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Plan as of December 31, 1994 and 1993, and the Plan income and changes in Plan equity for each of the three years ended December 31, 1994, 1993 and 1992, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of the Allocation of Plan Assets and Liabilities to Investment Programs, Allocation of Plan Income and Changes in Plan Equity to Investment Programs, Schedule of Assets Held for Investment Purposes and Schedule of Reportable Transactions are presented for purposes of complying with Securities and Exchange Commission requirements and 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. Such schedules have been subjected to the auditing procedures applied in our 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. /S/ ARTHUR ANDERSEN LLP Denver, Colorado, June 21, 1995. Page 5 of 24 6 CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS As independent public accountants, we hereby consent to the incorporation by reference of our report, included in this Form 11-K, into the Company's previously filed Registration Statement File No. 33-24934. /S/ ARTHUR ANDERSEN LLP Denver, Colorado, June 23, 1995. Page 6 of 24 7 K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN INDEX
Page(s) ------- FINANCIAL STATEMENTS: Statements of Financial Condition-December 31, 1994 and 1993 1 Statements of Income and Changes in Plan Equity for the Years Ended December 31, 1994, 1993 and 1992 2 NOTES TO FINANCIAL STATEMENTS 3-9 SUPPLEMENTAL SCHEDULES: Schedule I-Allocation of Plan Assets and Liabilities to Investment Programs 10-11 Schedule II-Allocation of Plan Income and Changes in Plan Equity to Investment Programs 12-14 Schedule III-Schedule of Assets Held for Investment Purposes as of December 31, 1994 15 Schedule IV-Schedule of Reportable Transactions for the Year Ended December 31, 1994 16 Schedule V-The 401(k) Retirement Savings Plan and Trust-Allocation of Plan Income and Changes in Plan Equity to Investment Programs for the Year Ended June 30, 1994 17
Page 7 of 24 8 K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN STATEMENTS OF FINANCIAL CONDITION--DECEMBER 31, 1994 AND 1993
ASSETS 1994 1993 ------ ---- ---- (Schedule I) INVESTMENTS, at market value (Notes 1 and 2): K N Energy, Inc. common stock $ 45,902,256 $35,320,246 Index fund - 14,593,557 Intermediate-term bonds - 6,575,869 Treasury notes - 22,282,751 Voyager Fund 15,244,974 - Global Growth Fund 8,478,142 - Fund for Growth and Income 11,226,637 - Income Fund 6,866,467 - U.S. Government Income Trust 10,485,640 - Participant loans 526,283 - --------------- -------------- 98,730,399 78,772,423 CASH 20,954 159,154 RECEIVABLES: K N Energy, Inc. 2,324,070 2,432,600 Interest and Dividends 60,323 171,217 --------------- -------------- Total assets $ 101,135,746 $ 81,535,394 =============== ============== LIABILITIES AND PLAN EQUITY ACCOUNTS PAYABLE $ - $ - PLAN EQUITY 101,135,746 81,535,394 --------------- -------------- Total liabilities and plan equity $ 101,135,746 $ 81,535,394 =============== ==============
The accompanying notes and schedules are an integral part of these financial statements. Page 8 of 24 9 K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN STATEMENTS OF INCOME AND CHANGES IN PLAN EQUITY FOR THE YEARS ENDED DECEMBER 31, 1994, 1993 AND 1992
1994 1993 1992 --------------- -------------- -------------- CONTRIBUTIONS (Note 1): Employer $ 2,324,070 $ 2,432,600 $ 1,958,942 Employee 2,246,065 - - --------------- -------------- -------------- 4,570,135 2,432,600 1,958,942 CASH SURRENDER VALUE OF LIFE INSURANCE (Note 1) - 26,964 35,263 --------------- -------------- -------------- EARNINGS (LOSSES) FROM INVESTMENTS (Note 2): Unrealized gains (losses) (7,051,925) 10,288,198 1,718,421 Realized gains (losses) 426,691 41,479 (172,371) Interest 385,559 1,470,940 1,978,402 Dividends 3,885,135 1,643,988 1,506,150 --------------- -------------- -------------- Total earnings from investments (2,354,540) 13,444,605 5,030,602 DISTRIBUTIONS: Directly to participants (4,331,688) (4,233,987) (5,044,983) To insurance company for provision of benefits, net of policy dividends (8,811) 12,881 51,351 --------------- -------------- -------------- Total distributions (4,340,499) (4,221,106) (4,993,632) --------------- -------------- -------------- TRANSFER FROM RELATED PLAN (Note 1) 21,725,256 - - --------------- -------------- -------------- NET INCREASE (DECREASE) IN PLAN EQUITY DURING THE YEAR 19,600,352 11,683,063 2,031,175 PLAN EQUITY, beginning of year 81,535,394 69,852,331 67,821,156 --------------- -------------- -------------- PLAN EQUITY, end of year $ 101,135,746 $ 81,535,394 $ 69,852,331 =============== ============== ==============
The accompanying notes and schedules are an integral part of these financial statements. Page 9 of 24 10 K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 1994 AND 1993 (1) DESCRIPTION OF THE PLAN General The Employees Retirement Fund Trust Profit Sharing Plan (the "Profit Sharing Plan") of K N Energy, Inc. (the "Company"), was established in 1945 for the benefit of eligible employees (as defined in the Plan indenture). The Profit Sharing Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"). Reference should be made to the Plan agreement for a more complete description of the Plan's provisions. The Profit Sharing Plan is the surviving plan of a merger effective July 1, 1994 of the 401(k) Retirement Savings Plan and Trust (the "401(k) Plan") into the Profit Sharing Plan. The surviving Profit Sharing Plan was amended and restated, including the name change to the Profit Sharing and Savings Plan (the "Plan"). The amounts from the 401(k) Plan resulting from the merger are reflected as Transfers from Related Plan in the accompanying 1994 Statement of Income and Changes in Plan Equity. Contributions Effective July 1, 1994, participants may elect to make pretax contributions totaling from 1% to 15% of their annual compensation, limited by requirements of the Internal Revenue Code. Participants may discontinue their election to contribute at any time. Page 10 of 24 11 For each Plan year, the Company, in total, pays employees directly and/or contributes to the Plan 10% of the total compensation (excluding bonuses) paid to eligible employees during that year, or 10% of the eligible net profit, as defined, of the Company for that year, whichever is less. The 1994 and 1993 contributions were based on eligible net income. The total Company contribution was $2,324,070 and $2,588,000 in 1994 and 1993, respectively. Employees may elect to receive 50% of the contribution in cash. This amount is paid directly to participants and is not an asset of the Plan. Beginning with the Company contribution which was allocated to the investment programs in February 1990, 50% of each participant's portion of the annual Company contribution must be designated to Fund K5, which was established on January 1, 1990, and consists of the Company's common stock. Participants are not allowed to transfer their investments from Fund K5 until age 55. Under IRS regulations, annual additions under the Plan and all other plans sponsored by the Company are limited to the lesser of 25% of eligible compensation or $30,000. Annual additions are defined as employer contributions and employee contributions. Investment Programs Participants may initially designate, and periodically redesignate their allocated portion of the contribution in percentage increments divisible by five, to one or more of the eligible investment programs. New Plan participants may elect to transfer investments from other qualified plans into the Plan within a specified time following their date of hire. Page 11 of 24 12 The investment programs of the Plan and the number of participants in each, at December 31, 1994 are briefly described as follows: K N ENERGY, INC. COMMON STOCK FUND--This investment program consists of shares of the Company's common stock. At December 31, 1994, 1,785 participants held 1,932,726 shares with a cost of $16,419,947 and a market value of $45,902,256. PUTNAM VOYAGER FUND--This program consists of investments in common stocks of small to medium-sized companies that is managed by Putnam Investment Management, Inc. At December 31, 1994, the investments had a cost of $15,872,323 and a market value of $15,244,974. There were 1,182 participants in the program. PUTNAM GLOBAL GROWTH FUND--This program seeks capital appreciation by investing primarily in common stocks traded in security markets located in a number of foreign countries and in the United States. At December 31, 1994, the investments had a cost of $9,104,642 and a market value of $8,478,142. There were 937 participants in the program. PUTNAM FUND FOR GROWTH AND INCOME--This program seeks capital growth and current income by investing primarily in a portfolio of common stocks that offer the potential for capital growth, current income or both. At December 31, 1994, the investments had a cost of $12,238,400 and a market value of $11,226,637. There were 1,017 participants in the program. PUTNAM INCOME FUND--This program invests in a portfolio of debt securities, both governmental and corporate obligations, preferred stocks and dividend-paying common stocks. At December 31, 1994, the investments had a cost of $7,072,794 and a market value of $6,866,467. There were 655 participants in the program. PUTNAM U.S. GOVERNMENT INCOME TRUST--This program invests in a portfolio of government obligations. At December 31, 1994, the investments had a cost of $10,800,350 and a market value of $10,485,640. There were 696 participants in the program. The investment programs of the Plan and the number of participants at December 31, 1993, are briefly described as follows: Page 12 of 24 13 FUND KN--This investment program consists of shares of the Company's common stock. At December 31, 1993, 979 participants held 1,135,617 shares with a cost of $21,599,413 and a market value of $29,242,061. FUND K5--This investment program consists of shares of the Company's common stock. Beginning in 1990, 50% of the annual Company contribution must be designated to Fund K5 by participants under age 55. Participants may not redesignate the Fund K5 contributions until age 55. At December 31, 1993, 1,484 participants held 236,040 shares with a cost of $4,593,538 and a market value of $6,078,185. FUND EQ--This program consists of investment units in the Harris Trust and Savings Bank ("Harris") Index Fund, which is designed to track the Standard & Poor's 500 Stock Average ("S&P 500") and in the Harris Reserve Fund. The Index Fund consists of investments in corporate common stocks selected by Harris from the S&P 500. The Index Fund does not include common stock of the Company. At December 31, 1993, 15,368 Index Fund units with a cost of $13,673,863 and a market value of $14,593,557 were held by the 957 participants in this program. FUND BI--This program consists of investments in an intermediate bond pool administered by Alliance Capital Management Corporation ("Alliance"). At December 31, 1993, the investments had a cost of $6,341,933 and a market value of $6,575,869. There were 686 participants in the program at December 31, 1993. FUND GI--This program consists of investments in short-term U.S. Government Securities and is managed by the Ark Asset Management Company, Inc. At December 31, 1993, 1,303 participants held investments with a cost of $22,275,478 and a market value of $22,282,751. On August 10, 1993, K N's Board of Directors declared a three-for-two common stock split which was distributed on October 4, 1993. All share amounts in Fund KN and Fund K5 have been restated to reflect the stock split. Prior to January 1, 1987, participants had the option of purchasing life insurance through the Plan. Thereafter, the segment of the Plan allowing for the purchase of a life insurance policy on the life of Page 13 of 24 14 the participant was frozen so that no new policies could be written. Participants with policies at December 31, 1986, had the following options: 1) allow the policy to remain in force with a frozen face value and fixed premium payments, 2) elect to use the cash surrender value ("CSV") of the policy to purchase paid-up life insurance or 3) reinvest the CSV of the policy in another fund. The value of life insurance in force is not recorded in these financial statements. Benefits/Vesting Obligations for distributions to participants who terminated from the Plan prior to December 31, 1994 and 1993, but were not paid until subsequent to yearend are immaterial. Participants have fully vested and nonforfeitable interests in their accounts at all times. Employees hired after January 1, 1995, are subject to a four-year vesting provision (25% per year of service) for Company contributions. Contributions may be withdrawn, with the approval of the Advisory Committee, in the event of unusual expenses connected with illness or disability, in the event that the money is necessary for children's college expenses, or the purchase of a primary residence, as defined in the Plan document. If not withdrawn earlier, a participant's account will be distributed in the event of termination of employment, death, or termination of the Plan. If a participant's account is less than $3,500, a lump-sum distribution will generally be made. If a participant's account is greater than $3,500, the participant's distribution options are: lump-sum distribution, monthly or yearly installments, or purchase of an annuity. Retirees may continue to leave their account in the Plan. Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants will remain 100 percent vested in their accounts. Page 14 of 24 15 The Plan had no reportable or prohibited party-in-interest transactions for the years ended December 31, 1994 and 1993. Effective July 1, 1995, participants may borrow from their deferral portion of their fund accounts a minimum of $500 up to a maximum equal to the lesser of $50,000 or 50 percent of their vested deferral account balance. The loans are subject to certain restrictions, as defined in the Plan document and applicable restrictions under the IRC. (2) SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting and Valuation The financial statements of the Plan are prepared on the accrual basis of accounting. Investments are accounted for at yearend fair market values. Unrealized appreciation (depreciation) is the difference between the fair value at the end of the current year and the cost of the investment, if acquired during the Plan year, or the fair value at the beginning of the Plan year. Therefore, the cost basis reflected in Note 1 represents revalued ERISA cost. The accompanying supplemental Schedule I reflects cost basis determined utilizing an original cost approach as required by ERISA. Other The Company's annual contribution is determined when annual net income and payroll amounts are known. The contribution is allocated to participants subsequent to yearend. The Company provides certain administrative and accounting services to the Plan at no cost and also pays the cost of certain outside services provided to the Plan. Such outside services paid by the Company were approximately $64,000 and $93,000 for 1994 and 1993, respectively. Page 15 of 24 16 (3) FEDERAL INCOME TAXES The Plan is qualified under the Internal Revenue Code as exempt from Federal income taxes and the Plan has received a favorable determination letter from the Internal Revenue Service. The Plan was amended and restated effective July 1, 1994. The Plan administrator believes that the Plan is currently designed and being operated in compliance with the applicable requirements of the Internal Revenue Code. Therefore, the administrator believes that the Plan was tax exempt as of the financial statement date. Employer contributions to the Plan and all earnings from Plan investments are not taxable to participants until a partial or complete distribution of such contributions or earnings is made. Page 16 of 24 17 SCHEDULE I Page 1 of 2 K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN ALLOCATION OF PLAN ASSETS AND LIABILITIES TO INVESTMENT PROGRAMS DECEMBER 31, 1994
K N The Putnam Energy, Inc. Putnam Putnam Fund for Putnam Putnam Common Stock Voyager Global Growth and Income U. S. Government ASSETS Fund Fund Growth Fund Income Fund Income Trust ------ ------------ ----------- ----------- ----------- ---------- ---------------- INVESTMENTS, at market value (Notes 1 and 2): K N Energy, Inc. common stock $45,902,256 $ - $ - $ - $ - $ - Voyager Fund - 15,244,974 - - - - Global Growth Fund - - 8,478,142 - - - Fund for Growth and Income - - - 11,226,637 - - Income Fund - - - - 6,866,467 - U. S. Government Income Trust - - - - - 10,485,640 Participant loans - - - - - - ----------- ----------- ---------- ----------- ---------- ----------- 45,902,256 15,244,974 8,478,142 11,226,637 6,866,467 10,485,640 ----------- ----------- ---------- ----------- ---------- ----------- CASH - - - - - - RECEIVABLES: K N Energy, Inc. (Notes 1 and 2) - - - - - - Interest and Dividends - - - - 14,194 46,129 ----------- ----------- ---------- ----------- ---------- ----------- Total assets $45,902,256 $15,244,974 $8,478,142 $11,226,637 $6,880,661 $10,531,769 =========== =========== ========== =========== ========== =========== LIABILITIES AND PLAN EQUITY --------------------------- ACCOUNTS PAYABLE $ - $ - $ - $ - $ - $ - PLAN EQUITY 45,902,256 15,244,974 8,478,142 11,226,637 6,880,661 10,531,769 ----------- ----------- ---------- ----------- ---------- ----------- Total liabilities and plan equity $45,902,256 $15,244,974 $8,478,142 $11,226,637 $6,880,661 $10,531,769 =========== =========== ========== =========== ========== ===========
Loan ASSETS Fund Other Total ------ ---------- ---------- ------------ INVESTMENTS, at market value (Notes 1 and 2): K N Energy, Inc. common stock $ - $ - $ 45,902,256 Voyager Fund - - 15,244,974 Global Growth Fund - - 8,478,142 Fund for Growth and Income - - 11,226,637 Income Fund - - 6,866,467 U. S. Government Income Trust - - 10,485,640 Participant loans 526,283 - 526,283 -------- ---------- ------------ 526,283 - 98,730,399 -------- ---------- ------------ CASH - 20,954 20,954 RECEIVABLES: K N Energy, Inc. (Notes 1 and 2) - 2,324,070 2,324,070 Interest and Dividends - - 60,323 -------- ---------- ------------ Total assets $526,283 $2,345,024 $101,135,746 ======== ========== ============ LIABILITIES AND PLAN EQUITY --------------------------- ACCOUNTS PAYABLE $ - $ - $ - PLAN EQUITY 526,283 2,345,024 101,135,746 -------- ---------- ------------ Total liabilities and plan equity $526,283 $2,345,024 $101,135,746 ======== ========== ============
The accompanying notes to financial statements are an integral part of this schedule. Page 17 of 24 18 SCHEDULE I Page 2 of 2 K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN ALLOCATION OF PLAN ASSETS AND LIABILITIES TO INVESTMENT PROGRAMS DECEMBER 31, 1993
ASSETS Fund KN Fund K5 Fund EQ Fund BI Fund GI Total ------ ----------- ---------- ----------- ---------- ----------- ----------- INVESTMENTS, at market value (Notes 1 and 2): K N Energy, Inc. common stock $29,242,061 $6,078,185 $ - $ - $ - $35,320,246 Index Fund - - 14,593,557 - - 14,593,557 Intermediate-term bonds - - - 6,575,869 - 6,575,869 Treasury notes - - - - 22,282,751 22,282,751 ----------- ---------- ----------- ---------- ----------- ----------- 29,242,061 6,078,185 14,593,557 6,575,869 22,282,751 78,772,423 ----------- ---------- ----------- ---------- ----------- ----------- CASH 12,271 - 49,356 - 97,527 159,154 ----------- ---------- ----------- ---------- ----------- ----------- RECEIVABLES: K N Energy, Inc. 436,184 1,181,187 331,625 168,739 314,865 2,432,600 Interest - - - - 171,217 171,217 ----------- ---------- ----------- ---------- ----------- ----------- Total assets $29,690,516 $7,259,372 $14,974,538 $6,744,608 $22,866,360 $81,535,394 =========== ========== =========== ========== =========== =========== LIABILITIES AND PLAN EQUITY --------------------------- ACCOUNTS PAYABLE $ - $ - $ - $ - $ - $ - PLAN EQUITY 29,690,516 7,259,372 14,974,538 6,744,608 22,866,360 81,535,394 ----------- ---------- ----------- ---------- ----------- ----------- Total liabilities and plan equity $29,690,516 $7,259,372 $14,974,538 $6,744,608 $22,866,360 $81,535,394 =========== ========== =========== ========== =========== ===========
The accompanying notes to financial statements are an integral part of this schedule. Page 18 of 24 19 SCHEDULE II Page 1 of 3 K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN ALLOCATION OF PLAN INCOME AND CHANGES IN PLAN EQUITY TO INVESTMENT PROGRAMS FOR THE YEAR ENDED DECEMBER 31, 1994
KN The Putnam Energy, Inc. Putnam Putnam Fund for Putnam Putnam Common Stock Voyager Global Growth and Income U. S. Government Fund Fund Growth Fund Income Fund Income Trust ------------ ----------- ----------- ----------- ---------- ---------------- CONTRIBUTIONS (Notes 1 and 2): Employer $ - $ - $ - $ - $ - $ - Employee 565,483 387,136 253,273 255,573 119,720 138,597 ----------- ----------- ---------- ----------- ---------- ----------- CASH SURRENDER VALUE OF LIFE INSURANCE (Note 1) - - - - - - ----------- ----------- ---------- ----------- ---------- ----------- EARNINGS FROM INVESTMENTS: Net appreciation (depreciation) in market value of investments (Note 2)- Unrealized gains (losses) 1,537,591 (627,349) (634,820) (1,011,763) (206,327) (314,710) Realized gains (losses) 1,004,576 (3,667) (7,290) (14,862) (5,569) (16,990) Interest - - - - - - Dividends 961,880 649,170 283,267 549,945 194,606 328,899 ----------- ----------- ---------- ----------- ---------- ----------- Total earnings from investments 3,504,047 18,154 (358,843) (476,680) (17,290) (2,801) ----------- ----------- ---------- ----------- ---------- ----------- DISTRIBUTIONS: Directly to participants (753,357) (202,677) (242,624) (159,392) (139,658) (480,194) To insurance company for provision of benefits, net of policy dividends (4,004) (1,151) (886) (1,038) (565) (1,167) ----------- ----------- ---------- ----------- ---------- ----------- Total distributions (757,361) (203,828) (243,510) (160,430) (140,223) (481,361) ----------- ----------- ---------- ----------- ---------- ----------- TRANSFERS TO (FROM) INVESTMENT PROGRAMS AND 401(k) PLAN (Note 1) 42,590,087 15,043,512 8,827,222 11,608,174 6,918,454 10,877,334 ----------- ----------- ---------- ----------- ---------- ----------- NET INCREASE (DECREASE) IN PLAN EQUITY DURING THE YEAR 45,902,256 15,244,974 8,478,142 11,226,637 6,880,661 10,531,769 PLAN EQUITY, beginning of year - - - - - - ----------- ----------- ---------- ----------- ---------- ----------- PLAN EQUITY, end of year $45,902,256 $15,244,974 $8,478,142 $11,226,637 $6,880,661 $10,531,769 =========== =========== ========== =========== ========== ===========
Loan Fund KN Fund K5 Fund EQ Fund BI Fund GI Fund ------------ ----------- ------------ ----------- ------------ -------- CONTRIBUTIONS (Notes 1 and 2): Employer $ - $ - $ - $ - $ - $ - Employee - - - - - 526,283 ------------ ----------- ------------ ----------- ------------ -------- CASH SURRENDER VALUE OF LIFE INSURANCE (Note 1) - - - - - - ------------ ----------- ------------ ----------- ------------ -------- EARNINGS FROM INVESTMENTS: Net appreciation (depreciation) in market value of investments (Note 2)- Unrealized gains (losses) (4,225,245) (899,586) (669,716) - - - Realized gains (losses) (76,634) (8,773) 10,979 (205,376) (249,703) - Interest - - (1,570) - 387,129 - Dividends 567,107 145,878 204,383 - - - ------------ ----------- ------------ ----------- ------------ -------- Total earnings from investments (3,734,772) (762,481) (455,924) (205,376) 137,426 - ------------ ----------- ------------ ----------- ------------ -------- DISTRIBUTIONS: Directly to participants (559,531) (70,311) (161,703) (286,915) (1,275,326) - To insurance company for provision of benefits, net of policy dividends - - - - - - ------------ ----------- ------------ ----------- ------------ -------- Total distributions (559,531) (70,311) (161,703) (286,915) (1,275,326) - ------------ ----------- ------------ ----------- ------------ -------- TRANSFERS TO (FROM) INVESTMENT PROGRAMS AND 401(k) PLAN (Note 1) (25,396,213) (6,426,580) (14,356,911) (6,252,317) (21,728,460) - ------------ ----------- ------------ ----------- ------------ -------- NET INCREASE (DECREASE) IN PLAN EQUITY DURING THE YEAR (29,690,516) (7,259,372) (14,974,538) (6,744,608) (22,866,360) 526,283 PLAN EQUITY, beginning of year 29,690,516 7,259,372 14,974,538 6,744,608 22,866,360 - ------------ ----------- ------------ ----------- ------------ -------- PLAN EQUITY, end of year $ - $ - $ - $ - $ - $526,283 ============ =========== ============ =========== ============ ========
Other Total ---------- ------------ CONTRIBUTIONS (Notes 1 and 2): Employer $2,324,070 $ 2,324,070 Employee - 2,246,065 ---------- ------------ CASH SURRENDER VALUE OF LIFE INSURANCE (Note 1) - - ---------- ------------ EARNINGS FROM INVESTMENTS: Net appreciation (depreciation) in market value of investments (Note 2)- Unrealized gains (losses) - (7,051,925) Realized gains (losses) - 426,691 Interest - 385,559 Dividends - 3,885,135 ---------- ------------ Total earnings from investments - (2,354,540) ---------- ------------ DISTRIBUTIONS: Directly to participants - (4,331,688) To insurance company for provision of benefits, net of policy dividends - (8,811) ---------- ------------ Total distributions - (4,340,499) ---------- ------------ TRANSFERS TO (FROM) INVESTMENT PROGRAMS AND 401(k) PLAN (Note 1) 20,954 21,725,256 ---------- ------------ NET INCREASE (DECREASE) IN PLAN EQUITY DURING THE YEAR 2,345,024 19,600,352 PLAN EQUITY, beginning of year - 81,535,394 ---------- ------------ PLAN EQUITY, end of year $2,345,024 $101,135,746 ========== ============
The accompanying notes to financial statements are an integral part of this schedule. Page 19 of 24 20 SCHEDULE II Page 2 of 3 K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN ALLOCATION OF PLAN INCOME AND CHANGES IN PLAN EQUITY TO INVESTMENT PROGRAMS FOR THE YEAR ENDED DECEMBER 31, 1993
Fund KN Fund K5 Fund EQ ------------ ----------- ------------ CONTRIBUTIONS (Notes 1 and 2): Employer $ 436,184 $ 1,181,187 $ 331,625 ------------ ----------- ------------ CASH SURRENDER VALUE OF LIFE INSURANCE (Note 1) -- -- -- ------------ ----------- ------------ EARNINGS FROM INVESTMENTS: Net appreciation (depreciation) in market value of investments (Note 2)- Unrealized gains 7,642,648 1,484,647 919,694 Realized gains (losses) 188,154 34,021 18,112 Interest -- -- 1,041 Dividends 1,035,809 215,749 392,430 ------------ ----------- ------------ Total earnings from investments 8,866,611 1,734,417 1,331,277 ------------ ----------- ------------ DISTRIBUTIONS: Directly to participants (961,242) (150,374) (494,582) ------------ ----------- ------------ To insurance company for provision of benefits, net of policy dividends -- -- -- ------------ ----------- ------------ Total distributions (961,242) (150,374) (494,582) ------------ ----------- ------------ TRANSFERS TO (FROM) INVESTMENT PROGRAMS (Note 1) (71,325) (14,452) 302,585 ------------ ----------- ------------ NET INCREASE (DECREASE) IN PLAN EQUITY DURING THE YEAR 8,270,228 2,750,778 1,470,905 PLAN EQUITY, beginning of year 21,420,288 4,508,594 13,503,633 ------------ ----------- ------------ PLAN EQUITY, end of year $ 29,690,516 $ 7,259,372 $ 14,974,538 ============ =========== ============ Fund BI Fund GI Total ----------- ------------ ------------ CONTRIBUTIONS (Notes 1 and 2): Employer $ 168,739 $ 314,865 $ 2,432,600 ----------- ------------ ------------ CASH SURRENDER VALUE OF LIFE INSURANCE (Note 1) -- 26,964 26,964 ------------ ----------- ------------ EARNINGS FROM INVESTMENTS: Net appreciation (depreciation) in market value of investments (Note 2)- Unrealized gains 233,936 7,273 10,288,198 Realized gains (losses) 16,652 (215,460) 41,479 Interest 337,067 1,132,832 1,470,940 Dividends -- -- 1,643,988 ------------ ----------- ------------ Total earnings from investments 587,655 924,645 13,444,605 ------------ ----------- ------------ DISTRIBUTIONS: Directly to participants (316,106) (2,311,683) (4,233,987) To insurance company for provision of benefits, net of policy dividends -- 12,881 12,881 ------------ ------------ ------------ Total distributions (316,106) (2,298,802) (4,221,106) ------------ ------------ ------------ TRANSFERS TO (FROM) INVESTMENT PROGRAMS (Note 1) 275,468 (492,276) -- ------------ ------------ ------------ NET INCREASE (DECREASE) IN PLAN EQUITY DURING THE YEAR 715,756 (1,524,604) 11,683,063 PLAN EQUITY, beginning of year 6,028,852 24,390,964 69,852,331 ------------ ------------ ------------ PLAN EQUITY, end of year $ 6,744,608 $ 22,866,360 $ 81,535,394 =========== ============ ============
The accompanying notes to financial statements are an integral part of this schedule. Page 20 of 24 21 SCHEDULE II Page 3 of 3 K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN ALLOCATION OF PLAN INCOME AND CHANGES IN PLAN EQUITY TO INVESTMENT PROGRAMS FOR THE YEAR ENDED DECEMBER 31, 1992
Fund KN Fund K5 Fund EQ ------------ ----------- ------------ CONTRIBUTIONS (Notes 1 and 2): Employer $ 232,471 $ 935,382 $ 288,220 Rollovers - -- -- -- ------------ ----------- ------------ 232,471 935,382 288,220 ------------ ----------- ------------ CASH SURRENDER VALUE OF LIFE INSURANCE (Note 1) -- -- -- ------------ ----------- ------------ EARNINGS FROM INVESTMENTS: Net appreciation (depreciation) in market value of investments (Note 2)- Unrealized gains (losses) 1,071,518 202,015 590,224 Realized gains (losses) (12,932) (3,924) 14,458 Interest -- -- -- Dividends 962,702 163,431 380,017 ------------ ----------- ------------ Total earnings from investments 2,021,288 361,522 984,699 ------------ ----------- ------------ DISTRIBUTIONS: Directly to participants (1,566,906) (108,244) (724,305) To insurance company for provision of benefits, net of policy dividends -- -- -- ------------ ----------- ------------ Total distributions (1,566,906) (108,244) (724,305) ------------ ----------- ------------ TRANSFERS TO (FROM) INVESTMENT PROGRAMS (Note 1) (521,456) (104,935) 1,040,754 ------------ ----------- ------------ NET INCREASE (DECREASE) IN PLAN EQUITY DURING THE YEAR 165,397 1,083,725 1,589,368 PLAN EQUITY, beginning of year 21,254,891 3,424,869 11,914,265 ------------ ----------- ------------ PLAN EQUITY, end of year $ 21,420,288 $ 4,508,594 $ 13,503,633 ============ =========== ============ Fund BI Fund GI Total ----------- ------------ ------------ CONTRIBUTIONS (Notes 1 and 2): Employer $ 133,943 $ 368,926 $ 1,958,942 Rollovers - -- -- ----------- ------------ ------------ 133,943 368,926 1,958,942 ----------- ------------ ------------ CASH SURRENDER VALUE OF LIFE INSURANCE (Note 1) -- 35,263 35,263 ----------- ------------ ------------ EARNINGS FROM INVESTMENTS: Net appreciation (depreciation) in market value of investments (Note 2)- Unrealized gains (losses) (7,878) (137,458) 1,718,421 Realized gains (losses) 6,993 (176,966) (172,371) Interest 375,931 1,602,471 1,978,402 Dividends -- -- 1,506,15 ----------- ------------ ------------ Total earnings from investments 375,046 1,288,047 5,030,602 ----------- ------------ ------------ DISTRIBUTIONS: Directly to participants (334,507) (2,311,021) (5,044,983) To insurance company for provision of benefits, net of policy dividends -- 51,351 51,351 ----------- ------------ ------------ Total distributions (334,507) (2,259,670) (4,993,632) ----------- ------------ ------------ TRANSFERS TO (FROM) INVESTMENT PROGRAMS (Note 1) 221,079 (635,442) -- ----------- ------------ ------------ NET INCREASE (DECREASE) IN PLAN EQUITY DURING THE YEAR 395,561 (1,202,876) 2,031,175 PLAN EQUITY, beginning of year 5,633,291 25,593,840 67,821,156 ----------- ------------ ------------ PLAN EQUITY, end of year $ 6,028,852 $ 24,390,964 $ 69,852,331 =========== ============ ============
The accompanying notes to financial statements are an integral part of this schedule. Page 21 of 24 22 SCHEDULE III K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN ITEM 27a--SCHEDULE OF PLAN ASSETS HELD FOR INVESTMENT PURPOSES AS OF DECEMBER 31, 1994
Number of Shares or Market Description of Asset Custodian Units Cost* Value - -------------------------------------- ------------------ ---------- ------------ ----------- * * K N Energy, Inc. Common Stock Fund Putnam Investments 1,932,726 $16,419,947 $45,902,256 Putnam Voyager Fund Putnam Investments 1,323,348 15,872,323 15,244,974 Putnam Global Growth Fund Putnam Investments 919,538 9,104,642 8,478,142 The Putnam Fund for Growth and Income Putnam Investments 882,597 12,238,400 11,226,637 Putnam Income Fund Putnam Investments 1,061,278 7,072,794 6,866,467 Putnam U.S. Government Income Trust Putnam Investments 860,184 10,800,350 10,485,640 Cash Pending Account Putnam Investments -- 20,954 20,954 Participant Loans Putnam Investments (Interest rates ranging from 7.75% to 9.00%) -- 526,283 526,283 ----------- ----------- $72,055,693 $98,751,353 =========== ===========
* Determined using original historical cost * * Related party The accompanying notes to financial statements are an integral part of this schedule. Page 22 of 24 23 SCHEDULE IV K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1994
Number of Transactions Identity of Description of ----------------- Purchase Sales Cost Gain Party Involved Transaction Purchases Sales Price Price Basis (Loss) - --------------------------- ------------------------ --------- ----- ----------- ----------- ----------- --------- Putnam Investments: Putnam Fund For Growth and 39 -- $12,563,122 $ -- $12,563,122 $ -- Income -- 73 -- 309,859 324,722 (14,863) Putnam Income 39 -- 7,292,268 -- 7,292,268 -- Fund -- 52 -- 213,905 219,474 (5,569) Putnam Global 42 -- 9,441,233 -- 9,441,233 -- Growth Fund -- 69 -- 320,982 328,270 (7,288) Putnam Voyager 41 -- 16,165,745 -- 16,165,745 -- Fund -- 79 -- 289,757 293,424 (3,667) Putnam U.S. Government Income 37 -- 11,486,111 -- 11,486,111 -- Trust -- 63 -- 668,771 685,761 (16,990) * K N Energy, Inc. 49 -- 15,567,843 -- 15,567,843 -- Common Stock Fund -- 77 -- 16,125,857 11,302,633 4,823,224
* Related Party The accompanying notes to financial statements are an integral part of this statement. Page 23 of 24 24 SCHEDULE V K N ENERGY, INC. 401(k) RETIREMENT SAVINGS PLAN AND TRUST STATEMENTS OF INCOME AND CHANGES IN PLAN EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 1994 (See Note 1)
1994 ------------ PARTICIPANTS' CONTRIBUTIONS $ 1,305,610 ------------ EARNINGS (LOSSES) FROM INVESTMENTS: Unrealized losses (1,657,865) Realized losses (152,478) Dividends 156,718 Interest 203,852 ------------ Total losses from investments (1,449,773) DISTRIBUTIONS TO PARTICIPANTS (824,701) TRANSFER TO RELATED PLAN (21,725,256) ------------ NET DECREASE IN PLAN EQUITY DURING THE YEAR (22,694,120) PLAN EQUITY, beginning of year 22,694,120 ------------ PLAN EQUITY, end of year $ -- ============
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