-----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, JSXXbk2HN4z7QWaupBQWoa4u2F6oQZsTl2V1YZDYCaK52GCCpLb9epmSw0Dj5fzU W6kTxionSvtjsu6hA0tNew== 0001035704-98-000419.txt : 19980630 0001035704-98-000419.hdr.sgml : 19980630 ACCESSION NUMBER: 0001035704-98-000419 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980629 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: SEC FILE NUMBER: 001-06446 FILM NUMBER: 98655528 BUSINESS ADDRESS: STREET 1: 370 VAN GORDON ST STREET 2: PO BOX 281304 CITY: LAKEWOOD STATE: CO ZIP: 80228-8304 BUSINESS PHONE: 3039891740 MAIL ADDRESS: STREET 1: 370 VAN GORDON STREET STREET 2: P O BOX 281304 CITY: LAKEWOOD STATE: CO ZIP: 80228-8304 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 DATED DECEMBER 31, 1997 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, 1997 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 2 K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN FINANCIAL STATEMENTS AND SCHEDULES AS OF DECEMBER 31, 1997 AND 1996 TOGETHER WITH REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS 3 K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN INDEX
Page(s) ------- Report of Independent Public Accountants 1 FINANCIAL STATEMENTS: Statements of Financial Condition - December 31, 1997 and 1996 2 Statements of Income and Changes in Plan Equity for the Years Ended December 31, 1997, 1996 and 1995 3 NOTES TO FINANCIAL STATEMENTS AND SCHEDULES 4-12 SUPPLEMENTAL SCHEDULES: Schedule I - Allocation of Plan Assets and Liabilities to Investment Programs - December 31, 1997 and 1996 13-14 Schedule II - Allocation of Plan Income and Changes in Plan Equity to Investment Programs for the Years Ended December 31, 1997, 1996 and 1995 15 Schedule III - Item 27a - Schedule of Plan Assets Held for Investment Purposes as of December 31, 1997 18 Schedule IV - Item 27d - Schedule of Reportable Transactions for the Year Ended December 31, 1997 19
4 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, 1997 and 1996, and the related statements of income and changes in plan equity for each of the three years in the period ended December 31, 1997. 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 condition of the Plan as of December 31, 1997 and 1996, and the Plan income and changes in Plan equity for each of the three years in the period ended December 31, 1997, 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 Plan 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 25, 1998. 5 K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN STATEMENTS OF FINANCIAL CONDITION - DECEMBER 31, 1997 AND 1996
ASSETS 1997 1996 ------ ------------ ------------ (Schedule I) INVESTMENTS, at market value (Notes 1 and 2): K N Energy, Inc. common stock $ 90,067,779 $ 67,052,748 Voyager Fund 30,096,655 24,673,000 New Opportunities Fund 1,099,091 -- Asset Allocation - Growth Portfolio 131,650 -- Asset Allocation - Balanced Portfolio 465,983 -- Asset Allocation - Conservative Portfolio 107,473 -- Fund for Growth and Income 22,844,812 17,550,702 Income Fund 6,713,632 6,196,452 International Growth Fund 12,505,454 10,106,065 Money Market Fund 10,596,482 11,192,525 Participant loans 1,898,521 1,434,084 ------------ ------------ Total investments 176,527,532 138,205,576 CASH 4,140 49,115 RECEIVABLES: K N Energy, Inc. (Notes 1 and 2) 5,755,990 6,654,828 Interest and dividends -- 23,790 ------------ ------------ Total assets $182,287,662 $144,933,309 ============ ============ LIABILITIES AND PLAN EQUITY LIABILITIES $ -- $ -- PLAN EQUITY 182,287,662 144,933,309 ------------ ------------ Total liabilities and Plan equity $182,287,662 $144,933,309 ============ ============
The accompanying notes and schedules are an integral part of these financial statements. -1- 6 K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN STATEMENTS OF INCOME AND CHANGES IN PLAN EQUITY FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
1997 1996 1995 ------------- ------------- ------------- (Schedule II) CONTRIBUTIONS (Notes 1 and 2): Employer $ 5,755,990 $ 6,659,842 $ 5,062,761 Employee 5,863,631 3,857,429 3,717,443 ------------- ------------- ------------- Total contributions 11,619,621 10,517,271 8,780,204 ------------- ------------- ------------- EARNINGS FROM INVESTMENTS (Note 2): Net appreciation in market value of investments 32,003,494 20,959,665 20,670,351 Interest 137,339 126,648 63,455 Dividends 8,436,517 6,817,268 5,748,740 Forfeitures 40,107 -- -- ------------- ------------- ------------- Total earnings from investments 40,617,457 27,903,581 26,482,546 DISTRIBUTIONS: Directly to participants (14,763,186) (18,455,415) (15,436,519) To insurance company for provision of benefits, net of policy dividends (19,120) (37,068) (17,043) Administration fees (10,830) (9,196) (9,450) Excess contributions (45,513) -- -- Forfeitures (44,076) -- -- ------------- ------------- ------------- Total distributions (14,882,725) (18,501,679) (15,463,012) ------------- ------------- ------------- TRANSFERS FROM RELATED PLANS (Notes 1 and 6) -- 3,867,962 210,690 ------------- ------------- ------------- NET INCREASE IN PLAN EQUITY DURING THE YEAR 37,354,353 23,787,135 20,010,428 PLAN EQUITY, beginning of year 144,933,309 121,146,174 101,135,746 ------------- ------------- ------------- PLAN EQUITY, end of year $ 182,287,662 $ 144,933,309 $ 121,146,174 ============= ============= =============
The accompanying notes and schedules are an integral part of these financial statements. -2- 7 K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS AND SCHEDULES FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995 (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 Profit Sharing Plan indenture). The Profit Sharing Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"). 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"). Benefits under the Plan are not guaranteed by the Pension Benefit Guarantee Corporation. Reference should be made to the Plan agreement for a more complete description of the Plan's provisions. - 3 - 8 Contributions 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. For each Plan year, the Company contributes to the Plan a maximum of 10% of the total compensation (excluding bonuses) paid to eligible employees during that year, based on the Company's attainment of financial targets set by the Board of Directors for that fiscal year. The 1997, 1996 and 1995 contributions were based on eligible net income. The total Company contribution was $5,755,990, $6,659,842 and $5,062,761 in 1997, 1996 and 1995, respectively. Beginning with the Company contribution in 1990, 50% of each participant's portion of the annual Company contribution must be designated to the fund consisting of the Company's common stock, (the "K N Energy, Inc. Common Stock Fund"). Participants are not allowed to transfer their investments until age 55. The participant can invest the remaining 50% in their investment elections. 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 designate 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. -4- 9 The investment programs of the Plan and the number of participants in each program at December 31, 1997, 1996 and 1995 are briefly described as follows: K N ENERGY, INC. COMMON STOCK FUND--This program consists of shares of the Company's common stock. At December 31, 1997, 1,834 participants held 1,667,922 shares with a cost of $19,590,675 and a market value of $90,067,779. At December 31, 1996, 1,868 participants held 1,708,350 shares with a cost of $16,488,176 and a market value of $67,052,748. At December 31, 1995, 1,807 participants held 1,825,626 shares with a cost of $15,677,538 and a market value of $53,171,364. PUTNAM VOYAGER FUND--This program consists of investments in common stocks of small companies that is managed by Putnam Investment Management, Inc. At December 31, 1997, 1,402 participants held 1,579,877 shares with a cost of $22,189,313 and a market value of $30,096,655. At December 31, 1996, 1,441 participants held 1,530,583 shares with a cost of $20,300,553 and a market value of $24,673,000. At December 31, 1995, 1,334 participants held 1,383,725 shares with a cost of $17,015,802 and a market value of $21,101,795. PUTNAM NEW OPPORTUNITIES FUND--This program consists of investments in a portfolio of stocks in certain emerging industry groups that Putnam believes offer above-average long-term growth. At December 31, 1997, 225 participants held 22,592 shares with a cost of $1,018,263 and a market value of $1,099,091. This fund became an investment option in 1997. There was no activity in the fund in 1996 or 1995. PUTNAM ASSET ALLOCATION-GROWTH PORTFOLIO--This program uses a strategic allocation percentage between equity securities and fixed income securities. At December 31, 1997, 19 participants held 10,677 shares with a cost of $142,479 and a market value of $131,650. This fund became an investment option in 1997. There was no activity in the fund in 1996 or 1995. PUTNAM ASSET ALLOCATION-BALANCED PORTFOLIO--This program uses a strategic allocation percentage between equity securities and fixed income securities. At December 31, 1997, 23 participants held 41,867 shares with a cost of $488,011 and a market value of $465,983. This fund became an investment option in 1997. There was no activity in the fund in 1996 or 1995. - 5 - 10 PUTNAM ASSET ALLOCATION-CONSERVATIVE PORTFOLIO--This program uses a strategic allocation percentage between equity securities and fixed income securities. At December 31, 1997, 13 participants held 10,780 shares with a cost of $112,134 and a market value of $107,473. This fund became an investment option in 1997. There was no activity in the fund in 1996 or 1995. 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, 1997, 1,189 participants held 1,169,131 shares with a cost of $19,136,721 and a market value of $22,844,812. At December 31, 1996, 1,150 participants held 973,957 shares with a cost of $14,554,501 and a market value of $17,550,702. At December 31, 1995, 1,112 participants held 876,748 shares with a cost of $12,333,755 and a market value of $14,194,547. PUTNAM INCOME FUND--This program invests primarily in corporate bonds from credit worthy companies. At December 31, 1997, 601 participants held 944,252 shares with a cost of $6,419,215 and a market value of $6,713,632. At December 31, 1996, 632 participants held 883,945 shares with a cost of $5,955,009 and a market value of $6,196,452. At December 31, 1995, 674 participants held 965,239 shares with a cost of $6,462,876 and a market value of $6,978,673. PUTNAM INTERNATIONAL GROWTH FUND--This program seeks capital appreciation by investing in a diversified portfolio of stocks of companies located outside the United States. At December 31, 1997, 999 participants held 750,177 shares with a cost of $11,519,079 and a market value of $12,505,454. At December 31, 1996, 1,006 participants held 672,393 shares with a cost of $10,106,065 and a market value of $10,106,065. This fund became an investment option in 1996. There was no activity in the fund in 1995. PUTNAM MONEY MARKET FUND--This program invests primarily in money market investments. At December 31, 1997, 852 participants held 10,596,482 shares with a cost and a market value of $10,596,482. At December 31, 1996, 885 participants held 11,192,525 shares with a cost of $11,192,525 and a market value of $11,192,525. At December 31, 1995, 16 participants held 697,360 shares with a cost and a market value of $697,360. - 6 - 11 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. As of December 30, 1996, this is no longer an investment election. At December 31, 1995, 1,009 participants held 856,018 shares with a cost of $8,431,112 and a market value of $8,551,622. PUTNAM U.S. GOVERNMENT INCOME TRUST--This program invests in a portfolio of government obligations. As of December 31, 1996, this was no longer an investment option. As of December 31, 1995, 913 participants held 755,006 shares with a cost of $9,734,774 and a market value of $10,222,326. 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 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, 1997 and 1996, but were not paid until subsequent to yearend were $0 and $319,000, respectively. Participants are fully and immediately vested in their elective deferral contributions and rollover contributions. 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 for the purchase of a primary residence, as defined in the Plan document. If not withdrawn earlier, a -7- 12 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 become 100 percent vested in their accounts. 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. Forfeitures Forfeited balances of terminated participants' non-vested accounts are used to reduce Company contributions or administrative expenses. Forfeitures for the Plan years ended 1997 and 1996 were immaterial. (2) SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting and Valuation The financial statements of the Plan are prepared on the accrual basis of accounting. The preparation of the financial statements in conformity with generally accepted accounting principles requires the Plan's management to use estimates and assumptions that affect the accompanying financial statements and disclosures. Actual results could differ from these estimates. Investments -8- 13 are accounted for at yearend fair market values. Participant loans are valued at cost, which approximates fair market value. Unrealized appreciation 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. 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 $98,000 and $76,000 for 1997 and 1996, respectively. Payment of Benefits Benefits are recorded when paid. (3) TAX STATUS The Plan is qualified under the Internal Revenue Code as exempt from Federal income taxes and the Plan received a favorable determination letter from the Internal Revenue Service (the "IRS") on August 23, 1996. The Plan has been amended since receiving this determination, however, 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 dates. 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. -9- 14 (4) PARTY-IN-INTEREST TRANSACTIONS Certain Plan investments are shares of K N Energy, Inc. common stock. The Plan had no reportable or prohibited party-in-interest transactions for the years ended December 31, 1997, 1996 and 1995. Certain Plan investments are shares of mutual funds managed by Putnam Investments, Inc. Putnam Fiduciary Trust Company (the Trustee of the Plan) is a subsidiary of Putnam Investments, Inc. and therefore, these transactions qualify as party-in-interest. (5) INVESTMENTS Investments that represent 5% or more of the Plan's net assets as of December 31, 1997 and 1996 are separately identified in the accompanying Statements of Allocation of Plan Assets and Liabilities to Investment Programs. (6) PLAN MERGER Effective March 27, 1996, the American Oil and Gas Corporation 401(k) Retirement and Savings Plan merged into the Plan. Some of the assets transferred into the Plan prior to December 31, 1995. All the remaining assets were transferred in as of March 27, 1996 and are shown in the 1996 and 1995 Statements of Income and Changes in Plan Equity as transfers from Related Plans. (7) RISKS AND UNCERTAINTIES The Plan provides for various investment options in mutual funds and Company common stock. Investments, in general, are exposed to various risks, such as interest rate, credit and overall market volatility risk. Due to the level of risk associated with certain investments, it is reasonably possible that changes in the values of investments will occur in the near term and that such changes could materially affect participants' account balances and the amounts shown in the Statements of Financial Condition. -10- 15 (8) SUBSEQUENT EVENTS MidCon Acquisition In connection with the acquisition of MidCon Corp. by the Company, the MidCon Corp. Savings Plan ("MidCon Plan") was merged into the Plan effective May 1, 1998. All assets in the MidCon Plan, which totaled approximately $122 million, were liquidated and invested in the Plan pursuant to the participants' direction. All MidCon employees whose employment terminated as a result of the MidCon acquisition became 100% vested in their account balances due to a partial termination of the MidCon Plan. Sale of Kansas Operations In connection with the sale of certain of the Company's Kansas operations to Midwest Energy as of March 31, 1998, the account balances of certain employees will be rolled out of the Plan during 1998. The sum of these account balances is approximately $9.8 million. -11- 16 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, 1997
Putnam Putnam Putnam K N Asset Asset Asset Energy, Inc. Putnam Putnam New Allocation- Allocation- Allocation- ASSETS Common Stock Voyager Opportunities Growth Balanced Conservative Fund Fund Fund Portfolio Portfolio Portfolio ----------- ----------- ---------- -------- -------- -------- INVESTMENTS, at market value (Notes 1 and 2): K N Energy, Inc. common stock $90,067,779 $ -- $ -- $ -- $ -- $ -- Voyager Fund -- 30,096,655 -- -- -- -- New Opportunities Fund -- -- 1,099,091 -- -- -- Asset Allocation - Growth Portfolio -- -- -- 131,650 -- -- Asset Allocation - Balanced Portfolio -- -- -- -- 465,983 -- Asset Allocation - Conservative Portfolio -- -- -- -- -- 107,473 Fund for Growth and Income -- -- -- -- -- -- Income Fund -- -- -- -- -- -- International Growth Fund -- -- -- -- -- -- Money Market Fund -- -- -- -- -- -- Participant loans -- -- -- -- -- -- ----------- ----------- ---------- -------- -------- -------- Total investments 90,067,779 30,096,655 1,099,091 131,650 465,983 107,473 ----------- ----------- ---------- -------- -------- -------- CASH -- -- -- -- -- -- RECEIVABLES: K N Energy, Inc. (Notes 1 and 2) -- -- -- -- -- -- Interest and dividends -- -- -- -- -- -- ----------- ----------- ---------- -------- -------- -------- Total assets $90,067,779 $30,096,655 $1,099,091 $131,650 $465,983 $107,473 =========== =========== ========== ======== ======== ======== LIABILITIES AND PLAN EQUITY LIABILITIES $ -- $ -- $ -- $ -- $ -- $ -- PLAN EQUITY 90,067,779 30,096,655 1,099,091 131,650 465,983 107,473 ----------- ----------- ---------- -------- -------- -------- Total liabilities and plan equity $90,067,779 $30,096,655 $1,099,091 $131,650 $465,983 $107,473 =========== =========== ========== ======== ======== ======== Putnam Putnam Putnam Fund for Putnam International Money ASSETS Growth and Income Growth Market Loan Income Fund Fund Fund Fund ----------- ---------- ----------- ----------- ---------- INVESTMENTS, at market value (Notes 1 and 2): K N Energy, Inc. common stock $ -- $ -- $ -- $ -- $ -- Voyager Fund -- -- -- -- -- New Opportunities Fund -- -- -- -- -- Asset Allocation - Growth Portfolio -- -- -- -- -- Asset Allocation - Balanced Portfolio -- -- -- -- -- Asset Allocation - Conservative Portfolio -- -- -- -- -- Fund for Growth and Income 22,844,812 -- -- -- -- Income Fund -- 6,713,632 -- -- -- International Growth Fund -- -- 12,505,454 -- -- Money Market Fund -- -- -- 10,596,482 -- Participant loans -- -- -- -- 1,898,521 ----------- ---------- ----------- ----------- ---------- Total investments 22,844,812 6,713,632 12,505,454 10,596,482 1,898,521 ----------- ---------- ----------- ----------- ---------- CASH -- -- -- -- -- RECEIVABLES: K N Energy, Inc. (Notes 1 and 2) -- -- -- -- -- Interest and dividends -- -- -- -- -- ----------- ---------- ----------- ----------- ---------- Total assets $22,844,812 $6,713,632 $12,505,454 $10,596,482 $1,898,521 =========== ========== =========== =========== ========== LIABILITIES AND PLAN EQUITY LIABILITIES $ -- $ -- $ -- $ -- $ -- PLAN EQUITY 22,844,812 6,713,632 12,505,454 10,596,482 1,898,521 ----------- ---------- ----------- ----------- ---------- Total liabilities and plan equity $22,844,812 $6,713,632 $12,505,454 $10,596,482 $1,898,521 =========== ========== =========== =========== ========== ASSETS Other Total ---------- ------------ INVESTMENTS, at market value (Notes 1 and 2): K N Energy, Inc. common stock $ -- $ 90,067,779 Voyager Fund -- 30,096,655 New Opportunities Fund -- 1,099,091 Asset Allocation - Growth Portfolio -- 131,650 Asset Allocation - Balanced Portfolio -- 465,983 Asset Allocation - Conservative Portfolio -- 107,473 Fund for Growth and Income -- 22,844,812 Income Fund -- 6,713,632 International Growth Fund -- 12,505,454 Money Market Fund -- 10,596,482 Participant loans -- 1,898,521 ---------- ------------ Total investments -- 176,527,532 ---------- ------------ CASH 4,140 4,140 RECEIVABLES: K N Energy, Inc. (Notes 1 and 2) 5,755,990 5,755,990 Interest and dividends -- -- ---------- ------------ Total assets $5,760,130 $182,287,662 ========== ============ LIABILITIES AND PLAN EQUITY LIABILITIES $ -- $ -- PLAN EQUITY 5,760,130 182,287,662 ---------- ------------ Total liabilities and plan equity $5,760,130 $182,287,662 ========== ============
The accompanying notes to financial statements are an integral part of this schedule. - 12 - 17 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, 1996
K N Putnam Energy, Inc. Putnam Putnam Fund for Putnam ASSETS Common Stock Voyager Global Growth and Income Fund Fund Growth Fund Income Fund ----------- ----------- ---------- ----------- ---------- INVESTMENTS, at market value (Notes 1 and 2): K N Energy, Inc. common stock $67,052,748 $ -- $- $ -- $ -- Voyager Fund -- 24,673,000 -- -- -- Global Growth Fund -- -- -- -- -- Fund for Growth and Income -- -- -- 17,550,702 -- Income Fund -- -- -- -- 6,196,452 International Growth Fund -- -- -- -- -- U. S. Government Income Trust -- -- -- -- -- Putnam Money Market -- -- -- -- -- Participant loans -- -- -- -- -- ----------- ----------- ---------- ----------- ---------- Total investments 67,052,748 24,673,000 -- 17,550,702 6,196,452 ----------- ----------- ---------- ----------- ---------- CASH -- -- -- -- -- RECEIVABLES: K N Energy, Inc. (Notes 1 and 2) -- -- -- -- -- Interest and dividends -- -- -- -- 19,822 ----------- ----------- ---------- ----------- ---------- Total assets $67,052,748 $24,673,000 $ -- $17,550,702 $6,216,274 =========== =========== ========== =========== ========== LIABILITIES AND PLAN EQUITY LIABILITIES $ -- $ -- $ -- $ -- $ -- PLAN EQUITY 67,052,748 24,673,000 -- 17,550,702 6,216,274 ----------- ----------- ---------- ----------- ---------- Total liabilities and Plan equity $67,052,748 $24,673,000 $ -- $17,550,702 $6,216,274 =========== =========== ========== =========== ========== Putnam Putnam Putnam Money ASSETS International U. S. Government Market Loan Growth Fund Income Trust Fund Fund Other Total ----------- ----------- ----------- ---------- ---------- ------------ INVESTMENTS, at market value (Notes 1 and 2): K N Energy, Inc. common stock $ -- $ -- $ -- $ -- $ -- $ 67,052,748 Voyager Fund -- -- -- -- -- 24,673,000 Global Growth Fund -- -- -- -- -- -- Fund for Growth and Income -- -- -- -- -- 17,550,702 Income Fund -- -- -- -- -- 6,196,452 International Growth Fund 10,106,065 -- -- -- -- 10,106,065 U. S. Government Income Trust -- -- -- -- -- -- Putnam Money Market -- -- 11,192,525 -- -- 11,192,525 Participant loans -- -- -- 1,434,084 -- 1,434,084 ----------- ----------- ----------- ---------- ---------- ------------ Total investments 10,106,065 -- 11,192,525 1,434,084 -- 138,205,576 ----------- ----------- ----------- ---------- ---------- ------------ CASH -- -- -- -- 49,115 49,115 RECEIVABLES: K N Energy, Inc. (Notes 1 and 2) -- -- -- -- 6,654,828 6,654,828 Interest and dividends -- -- 3,968 -- -- 23,790 ----------- ----------- ----------- ---------- ---------- ------------ Total assets $10,106,065 $ -- $11,196,493 $1,434,084 $6,703,943 $144,933,309 =========== =========== =========== ========== ========== ============ LIABILITIES AND PLAN EQUITY LIABILITIES $ -- $ -- $ -- $ -- $ -- $ -- PLAN EQUITY 10,106,065 -- 11,196,493 1,434,084 6,703,943 144,933,309 ----------- ----------- ----------- ---------- ---------- ------------ Total liabilities and Plan equity $10,106,065 $ -- $11,196,493 $1,434,084 $6,703,943 $144,933,309 =========== =========== =========== ========== ========== ============
The accompanying notes to financial statements are an integral part of this schedule. - 13 - 18 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, 1997
Putnam Putnam K N Asset Asset Energy, Inc. Putnam Putnam New Allocation- Allocation- ASSETS Common Stock Voyager Opportunities Growth Balanced Fund Fund Fund Portfolio Portfolio ------------ ------------ ----------- --------- --------- CONTRIBUTIONS (Notes 1 and 2): Employer $ 3,950,665 $ 1,032,352 $ 25,319 $ -- $ -- Employee 1,308,457 1,339,677 302,066 5,588 3,285 ------------ ------------ ----------- --------- --------- Total contributions 5,259,122 2,372,029 327,385 5,588 3,285 LOAN ACTIVITY, net (160,909) (85,954) (19,200) 25 85 EARNINGS FROM INVESTMENTS: Net appreciation (depreciation) in market value of investments (Note 2) 24,906,425 4,434,994 105,789 (10,743) (21,288) Interest -- -- -- -- -- Dividends 1,890,046 1,803,263 23,116 9,298 25,602 4,399 Forfeitures -- -- -- -- -- ------------ ------------ ----------- --------- --------- Total earnings (losses) from investments 26,796,471 6,238,257 128,905 (1,445) 4,314 ------------ ------------ ----------- --------- --------- DISTRIBUTIONS: Directly to participants (4,871,281) (2,625,892) (341,459) -- -- To insurance company for provision of benefits, net of policy dividends (5,753) (4,324) -- -- (76) Administration fees (1,976) (2,767) (122) (2) (5) Excess contributions (9,668) (14,417) (1,068) -- -- Forfeitures (23,360) (3,311) (377) -- -- ------------ ------------ ----------- --------- --------- Total distributions (4,912,038) (2,650,711) (343,026) (2) (81) ------------ ------------ ----------- --------- --------- TRANSFERS TO (FROM) INVESTMENT PROGRAMS (3,967,615) (449,966) 1,005,027 127,484 458,380 ------------ ------------ ----------- --------- --------- NET INCREASE (DECREASE) IN PLAN EQUITY DURING THE YEAR 23,015,031 5,423,655 1,099,091 131,650 465,983 PLAN EQUITY, beginning of year 67,052,748 24,673,000 -- -- -- ------------ ------------ ----------- --------- --------- PLAN EQUITY, end of year $ 90,067,779 $ 30,096,655 $ 1,099,091 $ 131,650 $ 465,983 ============ ============ =========== ========= ========= Putnam Asset Putnam Putnam Putnam Allocation- Fund for Putnam International Money ASSETS Conservative Growth and Income Growth Market Portfolio Income Fund Fund Fund ----------- ------------ ----------- ------------ ------------ CONTRIBUTIONS (Notes 1 and 2): Employer $ -- $ 458,819 $ 129,692 $ 366,435 $ 691,546 Employee 3,216 1,077,931 278,988 705,365 839,058 ----------- ------------ ----------- ------------ ------------ Total contributions 3,216 1,536,750 408,680 1,071,800 1,530,604 LOAN ACTIVITY, net 85 (69,015) 4,109 (46,096) (158,670) EARNINGS FROM INVESTMENTS: Net appreciation (depreciation) in market value of investments (Note 2) (4,687) 1,376,933 87,314 1,128,757 -- Interest -- -- -- -- -- Dividends 1,890,046 2,947,207 403,683 736,399 593,504 -- Forfeitures -- -- -- -- 40,107 ----------- ------------ ----------- ------------ ------------ Total earnings (losses) from investments (288) 4,324,140 490,997 1,865,156 633,611 ----------- ------------ ----------- ------------ ------------ DISTRIBUTIONS: Directly to participants (586) (2,121,838) (764,796) (931,002) (2,897,890) To insurance company for provision of benefits, net of policy dividends -- (3,864) (1,479) (1,764) (1,860) Administration fees (1) (1,847) (541) (1,048) (2,521) Excess contributions -- (7,744) (984) (3,815) (7,817) Forfeitures -- (1,340) (109) (702) (14,877) ----------- ------------ ----------- ------------ ------------ Total distributions (587) (2,136,633) (767,909) (938,331) (2,924,965) ----------- ------------ ----------- ------------ ------------ TRANSFERS TO (FROM) INVESTMENT PROGRAMS 105,047 1,638,868 361,481 446,860 319,409 ----------- ------------ ----------- ------------ ------------ NET INCREASE (DECREASE) IN PLAN EQUITY DURING THE YEAR 107,473 5,294,110 497,358 2,399,389 (600,011) PLAN EQUITY, beginning of year -- 17,550,702 6,216,274 10,106,065 11,196,493 ----------- ------------ ----------- ------------ ------------ PLAN EQUITY, end of year $ 107,473 $ 22,844,812 $ 6,713,632 $ 12,505,454 $ 10,596,482 =========== ============ =========== ============ ============ ASSETS Loan Fund Other Total ----------- ------------ ------------- CONTRIBUTIONS (Notes 1 and 2): Employer $ -- $ (898,838) $ 5,755,990 Employee -- -- 5,863,631 ----------- ------------ ------------- Total contributions -- (898,838) 11,619,621 LOAN ACTIVITY, net 535,540 -- -- EARNINGS FROM INVESTMENTS: Net appreciation (depreciation) in market value of investments (Note 2) -- 32,003,494 Interest 137,339 -- 137,339 Dividends 1,890,046 -- 8,436,517 Forfeitures -- -- 40,107 ----------- ------------ ------------- Total earnings (losses) from investments 137,339 -- 40,617,457 ----------- ------------ ------------- DISTRIBUTIONS: Directly to participants (208,442) -- (14,763,186) To insurance company for provision of benefits, net of policy dividends -- -- (19,120) Administration fees -- -- (10,830) Excess contributions -- -- (45,513) Forfeitures -- -- (44,076) ----------- ------------ ------------- Total distributions (208,442) -- (14,882,725) ----------- ------------ ------------- TRANSFERS TO (FROM) INVESTMENT PROGRAMS -- (44,975) -- ----------- ------------ ------------- NET INCREASE (DECREASE) IN PLAN EQUITY DURING THE YEAR 464,437 (943,813) 37,354,353 PLAN EQUITY, beginning of year 1,434,084 6,703,943 144,933,309 ----------- ------------ ------------- PLAN EQUITY, end of year $ 1,898,521 $ 5,760,130 $ 182,287,662 =========== ============ =============
The accompanying notes to financial statements are an integral part of this schedule. - 14 - 19 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, 1996
K N Putnam Energy, Inc. Putnam Putnam Fund for Putnam Common Stock Voyager Global Growth and Income Fund Fund Growth Fund Income Fund ------------ ------------ ----------- ------------ ----------- CONTRIBUTIONS (Notes 1 and 2): Employer $ -- $ -- $ -- $ -- $ -- Employee 1,102,446 1,148,826 485,041 644,504 182,939 ------------ ------------ ----------- ------------ ----------- Total contributions 1,102,446 1,148,826 485,041 644,504 182,939 LOAN ACTIVITY, net (115,630) (8,373) (2,528) (47,307) (7,012) EARNINGS FROM INVESTMENTS: Net appreciation (depreciation) in market value of investments (Note 2) 17,935,301 1,139,002 732,690 1,640,585 (206,665) Interest -- -- -- -- -- Dividends 1,907,463 1,560,590 720,642 1,497,053 456,301 -- ------------ ------------ ----------- ------------ ----------- Total earnings from investments 19,842,764 2,699,592 1,453,332 3,137,638 249,636 ------------ ------------ ----------- ------------ ----------- DISTRIBUTIONS: Directly to participants (7,850,675) (2,696,733) (918,176) (2,277,986) (1,217,577) To insurance company for provision of benefits, net of policy dividends -- -- -- -- -- Administration fees (1,442) (2,209) (816) (2,285) (611) Payments to insurance carriers (15,791) (6,129) (3,279) (4,333) (2,193) ------------ ------------ ----------- ------------ ----------- Total distributions (7,867,908) (2,705,071) (922,271) (2,284,604) (1,220,381) ------------ ------------ ----------- ------------ ----------- TRANSFERS TO (FROM) INVESTMENT PROGRAMS (Note 1) 919,712 2,436,231 (9,565,196) 1,905,924 11,464 TRANSFERS FROM RELATED PLAN -- -- -- -- -- ------------ ------------ ----------- ------------ ----------- NET INCREASE (DECREASE) IN PLAN EQUITY 13,881,384 3,571,205 (8,551,622) 3,356,155 (783,354) DURING THE YEAR PLAN EQUITY, beginning of year 53,171,364 21,101,795 8,551,622 14,194,547 6,999,628 ------------ ------------ ----------- ------------ ----------- PLAN EQUITY, end of year $ 67,052,748 $ 24,673,000 $ -- $ 17,550,702 $ 6,216,274 ============ ============ =========== ============ =========== Putnam Putnam International Putnam Money Growth U. S. Government Market Loan Fund Income Trust Fund Fund Other ----------- ------------ ------------ ----------- ----------- CONTRIBUTIONS (Notes 1 and 2): Employer $ -- $ -- $ -- $ -- $ 6,659,842 Employee -- 258,316 35,357 -- -- ----------- ------------ ------------ ----------- ----------- Total contributions -- 258,316 35,357 -- 6,659,842 LOAN ACTIVITY, net -- 1,544 (8,517) 299,223 (111,400) EARNINGS FROM INVESTMENTS: Net appreciation (depreciation) in market value of investments (Note 2) -- (281,248) -- -- -- Interest -- -- -- 102,011 24,637 Dividends 1,907,463 623,370 51,849 -- -- 6,817,268 ----------- ------------ ------------ ----------- ----------- Total earnings from investments -- 342,122 51,849 102,011 24,637 ----------- ------------ ------------ ----------- ----------- DISTRIBUTIONS: Directly to participants -- (1,925,643) (1,500,660) (67,965) -- To insurance company for provision of benefits, net of policy dividends -- -- -- -- -- Administration fees -- (1,741) (90) (1) (1) Payments to insurance carriers -- (5,343) -- -- (37,068) ----------- ------------ ------------ ----------- ----------- Total distributions -- (1,932,727) (1,500,750) (67,966) (1) ----------- ------------ ------------ ----------- ----------- TRANSFERS TO (FROM) INVESTMENT PROGRAMS (Note 1) 10,106,065 (8,934,326) 11,919,984 -- (8,799,858) TRANSFERS FROM RELATED PLAN -- -- -- -- 3,867,962 ----------- ------------ ------------ ----------- ----------- NET INCREASE (DECREASE) IN PLAN EQUITY 10,106,065 (10,265,071) 10,497,923 333,268 1,641,182 DURING THE YEAR PLAN EQUITY, beginning of year -- 10,265,071 698,570 1,100,816 5,062,761 ----------- ------------ ------------ ----------- ----------- PLAN EQUITY, end of year $10,106,065 $ -- $ 11,196,493 $ 1,434,084 $ 6,703,943 =========== ============ ============ =========== =========== Total ------------- CONTRIBUTIONS (Notes 1 and 2): Employer $ 6,659,842 Employee 3,857,429 ------------- Total contributions 10,517,271 LOAN ACTIVITY, net -- EARNINGS FROM INVESTMENTS: Net appreciation (depreciation) in market value of investments (Note 2) 20,959,665 Interest 126,648 Dividends 1,907,463 ------------- Total earnings from investments 27,903,581 ------------- DISTRIBUTIONS: Directly to participants (18,455,415) To insurance company for provision of benefits, net of policy dividends -- Administration fees (9,196) Payments to insurance carriers ------------- Total distributions (18,501,679) ------------- TRANSFERS TO (FROM) INVESTMENT PROGRAMS (Note 1) -- TRANSFERS FROM RELATED PLAN 3,867,962 ------------- NET INCREASE (DECREASE) IN PLAN EQUITY 23,787,135 DURING THE YEAR PLAN EQUITY, beginning of year 121,146,174 ------------- PLAN EQUITY, end of year $ 144,933,309 =============
The accompanying notes to financial statements are an integral part of this schedule. - 15 - 20 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, 1995
K N Putnam Energy, Inc. Putnam Putnam Fund for Putnam Common Stock Voyager Global Growth and Income Fund Fund Growth Fund Income Fund ------------- ------------- ------------- ------------- ------------- CONTRIBUTIONS (Notes 1 and 2): Employer $ -- $ -- $ -- $ -- $ -- Employee 1,237,494 857,036 512,214 528,051 227,680 ------------- ------------- ------------- ------------- ------------- Total contributions 1,237,494 857,036 512,214 528,051 227,680 LOAN ACTIVITY, net (251,111) (105,720) (56,334) (54,284) (8,173) EARNINGS FROM INVESTMENTS: Net appreciation (depreciation) in market value of investments (Note 2) 10,310,590 4,994,664 690,341 3,059,321 780,531 Interest -- -- -- -- -- Dividends 1,926,733 1,125,040 475,523 956,596 494,376 754,126 ------------- ------------- ------------- ------------- ------------- Total earnings from investments 12,237,323 6,119,704 1,165,864 4,015,917 1,274,907 ------------- ------------- ------------- ------------- ------------- DISTRIBUTIONS: Directly to participants (5,725,961) (2,170,982) (999,084) (2,361,029) (1,333,160) To insurance company for provision of benefits, net of policy dividends (8,101) (2,276) (1,599) (1,964) (1,111) Administration fees (1,430) (2,284) (998) (1,330) (711) ------------- ------------- ------------- ------------- ------------- Total distributions (5,735,492) (2,175,542) (1,001,681) (2,364,323) (1,334,982) ------------- ------------- ------------- ------------- ------------- TRANSFERS TO (FROM) INVESTMENT PROGRAMS (Note 1) (240,808) 1,151,536 (570,593) 833,532 (43,148) TRANSFERS FROM RELATED PLAN 21,702 9,807 24,010 9,017 2,683 ------------- ------------- ------------- ------------- ------------- NET INCREASE (DECREASE) IN PLAN EQUITY DURING THE YEAR 7,269,108 5,856,821 73,480 2,967,910 118,967 PLAN EQUITY, beginning of year 45,902,256 15,244,974 8,478,142 11,226,637 6,880,661 ------------- ------------- ------------- ------------- ------------- PLAN EQUITY, end of year $ 53,171,364 $ 21,101,795 $ 8,551,622 $ 14,194,547 $ 6,999,628 ============= ============= ============= ============= ============= Putnam Putnam Money U. S. Government Market Loan Income Trust Fund Fund Other Total ------------- ------------- ------------- ------------- ------------- CONTRIBUTIONS (Notes 1 and 2): Employer $ -- $ -- $ -- $ 5,062,761 $ 5,062,761 Employee 348,408 6,560 -- -- 3,717,443 ------------- ------------- ------------- ------------- ------------- Total contributions 348,408 6,560 -- 5,062,761 8,780,204 LOAN ACTIVITY, net 7,425 381 584,611 (116,795) -- EARNINGS FROM INVESTMENTS: Net appreciation (depreciation) in market value of investments (Note 2) 834,904 -- -- -- 20,670,351 Interest -- -- 63,455 -- 63,455 Dividends 1,926,733 16,346 -- -- 5,748,740 ------------- ------------- ------------- ------------- ------------- Total earnings from investments 1,589,030 16,346 63,455 -- 26,482,546 ------------- ------------- ------------- ------------- ------------- DISTRIBUTIONS: Directly to participants (2,429,205) (343,565) (73,533) -- (15,436,519) To insurance company for provision of benefits, net of policy dividends (1,887) (105) -- -- (17,043) Administration fees (2,637) (60) -- -- (9,450) ------------- ------------- ------------- ------------- ------------- Total distributions (2,433,729) (343,730) (73,533) -- (15,463,012) ------------- ------------- ------------- ------------- ------------- TRANSFERS TO (FROM) INVESTMENT PROGRAMS (Note 1) 195,492 1,019,013 -- (2,345,024) -- TRANSFERS FROM RELATED PLAN 26,676 -- -- 116,795 210,690 ------------- ------------- ------------- ------------- ------------- NET INCREASE (DECREASE) IN PLAN EQUITY DURING THE YEAR (266,698) 698,570 574,533 2,717,737 20,010,428 PLAN EQUITY, beginning of year 10,531,769 -- 526,283 2,345,024 101,135,746 ------------- ------------- ------------- ------------- ------------- PLAN EQUITY, end of year $ 10,265,071 $ 698,570 $ 1,100,816 $ 5,062,761 $ 121,146,174 ============= ============= ============= ============= =============
The accompanying notes to financial statements are an integral part of this schedule. - 16 - 21 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, 1997
Number of Issuer, Borrower, Lessor Shares or Current or Similar Party Description of Investment Units Cost* Value - ------------------------- ------------------------------------------------ -------------- --------------- ------------- **Putnam Investments: K N Energy, Inc. common stock 1,667,922 $ 19,590,675 $ 90,067,779 Putnam Voyager Fund 1,579,877 22,189,313 30,096,655 Putnam New Opportunities Fund 22,592 1,018,263 1,099,091 Asset Allocation - Growth Portfolio 10,677 142,479 131,650 Asset Allocation - Balanced Portfolio 41,867 488,011 465,983 Asset Allocation - Conservative Portfolio 10,780 112,134 107,473 Putnam Fund for Growth and Income 1,169,131 19,136,721 22,844,812 Putnam Income Fund 944,252 6,419,215 6,713,632 Putnam International Growth Fund 750,177 11,519,079 12,505,454 Putnam Money Market Fund 10,596,482 10,596,482 10,596,482 -------------- ------------ $ 91,212,372 $174,629,011 ============== ============ Participant Loans Interest rates ranging from 7.75% to 10.81% N/A $ 1,898,521 $ 1,898,521 ============== ============
* Determined using original historical cost ** Party-in-interest (Note 4) The accompanying notes to financial statements are an integral part of this schedule. - 17 - 22 SCHEDULE IV K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN ITEM 27d--SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1997
Number of Transactions Identity of Description of -------------------- *Purchase *Sales Cost Net Party Involved Transaction Purchases Sales Price Price Basis Gain/(Loss) - ------------------------ --------------------------- ----------- ------- ----------- ----------- ---------- ----------- **Putnam Investments: K N Energy, Inc. Stock 199 415 $8,889,829 $10,781,228 $5,787,338 $4,993,890 Voyager Fund 197 482 5,541,470 4,552,811 3,652,715 900,096 Fund for Growth and Income 229 396 7,023,564 3,106,389 2,441,348 665,041 Money Market Fund 332 426 5,765,878 6,361,921 6,361,921 --
* The current value of the assets on the transaction date is equal to the purchase/sales price on that date. ** Party-in-interest (Note 4) The accompanying notes to financial statements are an integral part of this statement. - 18 - 23 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 hereunto duly authorized. K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN By: /s/ Martha B. Wyrsch ----------------------------- Name: Martha B. Wyrsch ----------------------------- Title: Vice President, General Counsel & Secretary ------------------------------ Date: June 26, 1998 24 EXHIBIT INDEX
EXHIBIT NUMBER DESCRIPTION ------- ----------- EXHIBIT 23.2 Consent of Arthur Anderson LLP
EX-23.2 2 CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS 1 EXHIBIT 23.2 CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS As independent public accountants, we hereby consent to the incorporation by reference of our report dated June 25, 1998, 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 25, 1998. -----END PRIVACY-ENHANCED MESSAGE-----