-----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, GkIfnell+s5OymQKqqtaqahXFaqfla87h9CuvjdNAh1uFJbHh23QHCi+P837C7XD SodmMIPFuUgWL2GNqQxlKA== 0000916641-98-000700.txt : 19980611 0000916641-98-000700.hdr.sgml : 19980611 ACCESSION NUMBER: 0000916641-98-000700 CONFORMED SUBMISSION TYPE: 10-K/A PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980610 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DOMINION RESOURCES INC /VA/ CENTRAL INDEX KEY: 0000715957 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 541229715 STATE OF INCORPORATION: VA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K/A SEC ACT: SEC FILE NUMBER: 001-08489 FILM NUMBER: 98646078 BUSINESS ADDRESS: STREET 1: 901 E BYRD ST, WEST TOWER STREET 2: P O BOX 26532 CITY: RICHMOND STATE: VA ZIP: 23219 BUSINESS PHONE: 8047755700 MAIL ADDRESS: STREET 1: P O BOX 26532 STREET 2: 901 EAST BYRD STREET CITY: RICHMOND STATE: VA ZIP: 23261 10-K/A 1 DOMINION RESOURCES, INC. 10-K/A SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 -------------------------------------------- FORM 10-K/A AMENDMENT TO APPLICATION OR REPORT Filed pursuant to Section 12, 13, and 15 (d) of THE SECURITIES EXCHANGE ACT OF 1934 -------------------------------------------- Dominion Resources, Inc. (Exact name of registrant as specified in charter) AMENDMENT NO. 1 TO FORM 10-K The undersigned registrant hereby amends the exhibits to its 1997 Annual Report on Form 10-K to include the following 1997 Annual Reports for the Dominion Resources, Inc. Employee Savings Plan, Dominion Subsidiary Savings Plan, and the Virginia Power Hourly Employee Savings Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this amendment to be signed on its behalf by the undersigned, thereunto duly authorized. DOMINION RESOURCES, INC. Registrant BY /s/EDGAR M. ROACH, JR. ------------------------- Edgar M. Roach, Jr. Executive Vice President, Chief Financial Officer Date: June 10, 1998 FORM 11-K DECEMBER 31, 1997 EXHIBIT INDEX Exhibit Page Exhibit 99(i) Financial Statements to Form 11-K of Dominion Resources, Inc. Employee Savings Plan (filed in paper format) Exhibit 99(ii) Independent auditor's consent (filed electronically herewith) Exhibit 99(iii) Financial Statements to Form 11-K of Dominion Resources, Inc. Dominion Subsidiary Savings Plan (filed in paper format). Exhibit 99(iv) Independent auditor's consent (filed electronically herewith) Exhibit 99(v) Financial Statements to Form 11-K of Virginia Power Hourly Employee Savings Plan (filed in paper format) Exhibit 99(vi) Independent auditor's consent (filed electronically herewith) EX-99 2 EXHIBIT 99(I) 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 (Mark One): X ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT - ----- OF 1934. For the fiscal year ended December 31, 1997 OR TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from __________ to ___________ Commission File number 333-09167 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: Dominion Resources, Inc. Employee Savings Plan B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: DOMINION RESOURCES, INC. P. O. Box 26532 901 East Byrd Street - Suite 1700 Richmond, Virginia 23261-6111 DOMINION RESOURCES, INC. EMPLOYEE SAVINGS PLAN FINANCIAL STATEMENTS TABLE OF CONTENTS Pages Independent Auditors' Report F-2 Financial Statements: Statements of Net Assets Available for Benefits as of December 31, 1997 and 1996 F-3 Statements of Changes in Net Assets Available for Benefits for the Years Ended December 31, 1997, 1996 and 1995 F-4 Notes to Financial Statements F-5 - F-21 Supplemental Schedules as of December 31, 1997: Item 27a - Schedule of Assets Held for Investment Purposes F-22 Item 27d - Schedule of Reportable Transactions F-23 Schedules Omitted: The following schedules are omitted because of the absence of the conditions under which they are required, or because the required information is included in the financial statements or notes thereto: Schedules I, II and III. F-1 INDEPENDENT AUDITORS REPORT To the Organization and Compensation Committee of the Board of Directors of Virginia Electric and Power Company We have audited the accompanying financial statements of the Dominion Resources, Inc. Employee Savings Plan (the Plan) as of December 31, 1997 and 1996 and for each of the three years in the period ended December 31, 1997, listed in the Table of Contents on page F-1. 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, such financial statements 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 net assets available for plan benefits for each of the three years in the period ended December 31, 1997 in conformity with generally accepted accounting principles. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplemental schedules listed in the Table of Contents are presented for purposes of additional analysis and are not a required part of the basic financial statements, but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. These schedules are the responsibility of the Plan's management. Such schedules have been subjected to the auditing procedures applied in our audit of the basic 1997 financial statements and, in our opinion, are fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole. Richmond, Virginia May 29, 1998 F-2 DOMINION RESOURCES, INC. EMPLOYEE SAVINGS PLAN STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, ASSETS 1997 1996 - ------ --------------------- -------------------- Investments (Notes 1 and 2): Dominion Resources, Inc., Common Stock $ 227,358,045 $ 228,662,129 Common/Collective Trusts 83,467,788 57,850,573 Interest in Certus Stable Value Fund 44,640,390 39,215,119 Mutual Funds 101,096,713 61,943,145 Loans To Participants at Face Value 9,620,638 7,130,991 --------------------- -------------------- Total Investments 466,183,574 394,801,957 Receivables: Interest 232,683 208,833 Other 2,219,510 1,442,346 --------------------- -------------------- Total Receivables 2,452,193 1,651,179 Cash 123,233 2,709 --------------------- -------------------- Total Assets 468,759,000 396,455,845 --------------------- -------------------- Liabilities - Other 602,594 332,207 --------------------- -------------------- Net Assets Available for Benefits $ 468,156,406 $ 396,123,638 ===================== ====================
The accompanying notes are an integral part of the financial statements. F-3 DOMINION RESOURCES, INC. EMPLOYEE SAVINGS PLAN STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
For the Years Ended December 31, ---------------------------------------------------------- 1997 1996 1995 ------------------ ------------------ ----------------- Investment income: Net appreciation/(depreciation) in fair value of investments (Note 5) $ 51,284,949 $ (7,870,296) $ 50,082,305 Dividend income 17,266,136 18,287,095 19,244,113 Interest and other income 3,610,729 2,047,417 892,225 ------------------ ------------------ ----------------- Total investment income 72,161,814 12,464,216 70,218,643 Contributions: Participant (Note 1) 23,543,017 22,092,365 22,329,543 Participating companies (Note 1) 7,457,675 7,752,850 8,363,366 ------------------ ------------------ ----------------- Total additions 103,162,506 42,309,431 100,911,552 ------------------ ------------------ ----------------- Benefits paid to participants 30,900,004 34,560,571 40,517,577 Administrative expenses 165,007 417,964 346,936 ------------------ ------------------ ----------------- Total deductions 31,065,011 34,978,535 40,864,513 ------------------ ------------------ ----------------- Net increase before transfer 72,097,495 7,330,896 60,047,039 Transfer of participants' assets to/(from) the Plan (to)/from other plans: (64,727) 2,224,545 325,430 ------------------ ------------------ ----------------- Net increase 72,032,768 9,555,441 60,372,469 Net assets available for benefits: Beginning of year 396,123,638 386,568,197 326,195,728 ------------------ ------------------ ----------------- End of year $ 468,156,406 $ 396,123,638 $ 386,568,197 ================== ================== =================
The accompanying notes are an integral part of the financial statements. F-4 NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 1997 AND 1996 - ------------------------------------------- 1. DESCRIPTION OF PLAN The following description of the Dominion Resources, Inc. Employee Savings Plan (the Plan) provides only general information. Participants should refer to the Plan document for a more complete description of the Plan's provisions. a. GENERAL - The Plan is a defined contribution pension plan covering all full-time salaried employees of the Virginia Electric and Power Company (the Company) who have one year of service and are age 18 or older. The Company, a wholly-owned subsidiary of Dominion Resources, Inc. (DRI), is the designated Plan sponsor, fiduciary and administrator. Mellon Bank serves as the trustee of the Plan. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). b. CONTRIBUTIONS - Prior to June 1, 1996: Under the terms of the Plan, participants could make contributions to the Plan under the Regular Option and the Savings Plus Option. The Regular Option allowed participants to make after-tax contributions to the Plan. The Savings Plus Option allowed participants to contribute to the Plan with before-tax dollars. A maximum of 16% of the participant's eligible earnings could be invested in the Plan. Of this 16%, up to 10% could be invested on a tax-deferred basis under the Savings Plus Option. The Participating Companies (noted in Note 1d) contributed a matching amount equivalent to 50% of each participant's contributions, not to exceed 3% of the participant's eligible earnings, which was used to purchase DRI common stock. Effective June 1, 1996: A maximum of 17% of the participant's eligible earnings and 9% of highly compensated employee's eligible earnings can be invested in the Plan. Of the 17%, up to 12% can be invested on a tax-deferred basis. The Participating Companies contribute a matching amount equivalent to 50% of each participant's contributions, not to exceed 3% of the participant's eligible earnings, which is used to purchase DRI common stock. c. PARTICIPANT ACCOUNTS - Each participant's account is credited with the participant's contributions and withdrawals, as applicable, and allocations of (a) the Company's contributions and (b) Plan earnings, and debited with an allocation of administrative expenses. Allocations are based on participant earnings or account balances, as defined. Forfeited balances of terminated participants' non-vested accounts are used to reduce future Participating Companies' contributions. The benefit to which a participant is entitled is the benefit that can be provided from the participant's account. d. PLAN PARTICIPANTS - Any subsidiary of DRI may adopt the Plan for the benefit of its qualified salaried employees subject to approval of the Board of Directors of the Company. Currently only Dominion Resources, Inc., Dominion Energy, Dominion Capital, Vidalia Audit, Inc. and Company employees are participating in the Plan. F-5 There were 5,443 and 5,801 participants in the Plan as of December 31, 1997 and 1996, respectively. e. VESTING - Prior to June 1, 1996: Participants became vested in their own contributions immediately and in the Participating Companies' matching contributions at the earlier of (a) the beginning of the third year following the year in which the contribution was made or (b) the date the participant completed five years of service with the Company. Matching contributions vested immediately for participants aged 55 or older. Effective June 1, 1996: Participants become vested in their own contributions and the earnings on these amounts immediately, and in the participating companies' matching contributions and earnings after 3 years of service. Matching contributions vest immediately for participants aged 55 or older. f. INVESTMENT OPTIONS - Prior to June 1, 1996: The Plan provided for employee contributions to be invested in the following funds: Dominion Resources, Inc. (DRI) Common Stock Fund - All investments are in DRI Common Stock or cash equivalent investments for partial shares. Interest-Bearing Fund - This fund's focus was on preservation of principal and the primary investments were in high quality fixed income securities. Balanced Fund - Thirty percent of this fund was invested in equity securities and the residual was invested in fixed income securities. It was designed to produce stable long-term principal growth. America's Utility Fund - Investments were in the common stock of electric, gas and telephone utilities, which were intended to provide high income and moderate principal growth. America's Utility Fund was sponsored and administered by a subsidiary of DRI. Equity Index Fund - The objective was to provide a return equal to the return of the U.S. stock market as measured by the Standard and Poor's 500 Composite Stock Price Index. Loan Fund - Participants were allowed to borrow against their vested balance and repay the amount over a three-or four-year period. Participating Companies' matching contributions were invested only in the DRI Common Stock Fund and could not be transferred to other funds. Employee contributions could have been invested in any option (except the loan fund) in 10% increments totaling to 100%. Changes in investment options could have been selected four times a year, to be effective the first day of each quarter. F-6 Effective June 1, 1996: The Plan provides for employee contributions to be invested in the following: (1) Common Stock: Dominion Resources, Inc. (DRI) Common Stock Fund - All investments are in DRI Common Stock or cash equivalent investments for partial shares. (2) Interest in Certus Stable Value Fund: Certus Stable Value Fund - The fund invests in investment contracts of insurance companies and commercial banks and U.S. Government or agency backed bonds. (3) Mutual Funds: Premier Managed Income Fund - The fund invests primarily in investment-grade corporate and U.S. Government obligation and in obligation having maturities of 10 years or less. Dreyfus Balanced Fund, Inc. - The fund invests in equity and debt securities of domestic and foreign issuers. The Crabbe Huson Equity Fund, Inc. - The fund invests in common stock that have large market capitalization. Templeton Foreign Fund - The fund invests primarily in equity and debt securities of companies and governments outside the U.S. Warburg Pincus Emerging Growth Fund - The fund invests in equity securities of primarily domestic emerging growth companies. (4) Common/Collective Trust: Equity Index Fund - The fund invests primarily in the 500 stocks of the S&P 500 and may also invest in exchange traded options and financial futures. Upon enrollment in the Plan, a participant may direct employee contributions in any option (except the loan fund) in 1% increments totaling to 100%. Changes in investment options may be made at any time and become effective with the subsequent pay period. Participants can make unlimited transfers among existing funds. Company matching contributions are automatically contributed into the DRI Common Stock fund. However, participants who are under age 50 may transfer 50% of the value of their Company Match Account into another investment option, while participants who are age 50 and over may transfer 100% of the value of the Company Match Account. f. LOANS TO PARTICIPANTS - Participants are eligible to secure loans against their plan assets and repay the amount over a one-to five-year period. The maximum loan amount is the lesser of: o 50% of the vested account balance o $50,000 (reduced by the maximum outstanding loan balance during the prior twelve months) F-7 The loans are interest-bearing at one percentage point above the prime rate of interest. The rate is determined every quarter; however, the rate is fixed at the inception of the loan for the life of the loan. Participants make repayments to the Plan on a monthly basis. Any defaults in loans result in a reclassification of the remaining loan balances as taxable distributions to the participants. g. PAYMENT OF BENEFITS - Distributions from the Plan are recorded on the valuation date when a participant's valid withdrawal request is processed by the record keeper. On termination of service, a participant may elect to receive either a lump-sum amount equal to the value of the participant's vested interest in his or her account, or defer the payment to a future time no later than the year in which the participant attains age 70 1/2. There were no amounts payable to participants at December 31, 1997 and 1996. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. VALUATION OF INVESTMENTS: (1) Stock Fund - The investments of the Stock Fund are stated at fair value based on closing sales prices reported on recognized securities exchanges on the last business day of the year. (2) Mutual Funds - Investments in mutual funds are valued at quoted market prices which represent the net asset values of shares held by the Plan at year-end. (3) Common/Collective Trusts - Investments in common/collective trust funds (funds) are stated at estimated fair values, which have been determined based on the unit values of the funds. Unit values are determined by the bank sponsoring such funds by dividing the fund's net assets by its units outstanding at the valuation dates. (4) Investment Contracts - The guaranteed investment contracts within the Certus Stable Value Fund are valued at contract value. Contract value represents contributions made under the contract, plus earnings, less Plan withdrawals and administrative expenses. b. INVESTMENT INCOME - Dividend income is recognized on the ex-dividend date. c. EXPENSES - The Plan's expenses are accrued as incurred and paid by the Plan, as provided by the Plan document. d. 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 reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 3. CHANGE IN TRUSTEE Effective June 1, 1996, Mellon Trust, Mellon Bank, N.A. became the Trustee of the Plan. The prior Trustee was Signet Trust Company with respect to the DRI Common Stock Fund, America's Utility, Equity Income and Balance Funds. NationsBank served as Trustee of the Plan with respect to the Interest Bearing Fund. F-8 4. INVESTMENTS EXCEEDING 5% OF NET ASSETS The following table represents the fair value of investments exceeding 5% of the Plan's net assets at each year end:
1997 1996 ------------------ ------------------ Investment at Fair Value as Determined by Quoted Market Price: DRI Common Stock $ 227,358,045 $ 228,662,129 Dreyfus Balance Fund 47,064,871 39,029,616 ------------------ ------------------ 274,422,916 267,691,745 Investments at Estimated Fair Value: Mellon EB Daily Liquidity Index Fund 82,903,904 57,233,393 ------------------ ------------------ $ 357,326,820 $ 324,925,138 ================== ==================
5. NET APPRECIATION (DEPRECIATION) IN FAIR VALUE OF INVESTMENTS The Plan's investments (including investments bought, sold, as well as held during the year) appreciated (depreciated) in value by $51,284,949 in 1997, ($7,870,296) in 1996 and $50,082,305 in 1995, as follows:
a. Realized Gains/(Loss) 1997 1996 1995 ----------------- ------------------ ----------------- Investment at fair value as determined by quoted market price: Common Stock $ 4,151,677 $ 1,982,764 $ 2,753,725 U.S. Treasury Notes 102,473 - - Interest in Certus Stable Value Fund 1,157 - - Mutual Funds 9,873,380 1,787,621 175,324 ----------------- ------------------ ----------------- 14,026,214 3,770,385 3,031,522 Investments at estimated fair value: Common/Collective Trust Funds 3,703,099 3,605,296 676 ----------------- ------------------ ----------------- $ 17,729,313 $ 7,375,681 $ 3,032,198 ================= ================== ================= b. Unrealized Gains/(Loss) 1997 1996 1995 ----------------- ------------------ ----------------- Investment at fair value as determined by quoted market price: Common Stock $ 17,986,445 $(21,274,904) $ 31,861,335 U.S. Treasury Bill 112,656 - - Interest in Certus Stable Value Fund - - - Mutual Funds (1,683,672) 1,037,481 5,217,311 ----------------- ------------------ ----------------- 16,302,773 (20,237,423) 37,191,302 Investments at estimated fair value: Common/Collective Trust Funds 17,252,863 4,991,446 9,858,805 ----------------- ------------------ ----------------- $ 33,555,636 $(15,245,977) $ 47,050,107 ================= ================== =================
F-9
c. Net Appreciation/(Depreciation) in Fair Value of Investment 1997 1996 1995 ----------------- ------------------ ----------------- Investment at fair value as determined by quoted market price: Common Stock $ 22,138,122 $(19,292,140) $ 34,615,060 U.S. Treasury Bill - - 112,656 U.S. Treasury Notes - - 102,473 Interest in Certus Stable Value Fund 1,157 - - Mutual Funds 8,189,708 2,825,102 5,392,635 ----------------- ------------------ ----------------- 30,328,987 (16,467,038) 40,222,824 Investments at estimated fair value: Common/Collective Trust Funds 20,955,962 8,596,742 9,859,481 ----------------- ------------------ ----------------- $ 51,284,949 $ (7,870,296) $ 50,082,305 ================= ================== =================
6. PLAN TERMINATION Although it has not expressed any intention 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 set forth in ERISA. In the event of any termination of the Plan, or upon complete or partial discontinuance of contributions, the accounts of each affected participant shall become fully vested. 7. BY FUND INFORMATION The net assets available for benefits on a by fund basis and the changes in net assets available for benefits on a by fund basis are as follows: F-10 Dominion Resources, Inc. Employee Savings Plan Statement of Net Assets Available for Benefits by Fund December 31, 1997
Participant Directed -------------------------------------------- DRI Common Certus Stable Assets Total Stock Fund Value Fund - ------ -------------------- ---------------------- -------------------- Investments (Notes 1 and 2): Common stock $ 227,358,045 $ 97,187,920 Common/collective trust 83,467,788 192,941 Interest in Certus Stable Value Fund 44,640,390 $ 44,640,390 Mutual funds 101,096,713 Loans 9,620,638 -------------------- ---------------------- -------------------- Total investments 466,183,574 97,380,861 44,640,390 Receivables: Interest 232,683 2,603 225,973 Other 2,219,510 1,340,584 -------------------- ---------------------- -------------------- Total receivables 2,452,193 1,343,187 225,973 Cash 123,233 27,211 730 -------------------- ---------------------- -------------------- Total assets 468,759,000 98,751,259 44,867,093 -------------------- ---------------------- -------------------- Liabilities - other 602,594 74,403 -------------------- ---------------------- -------------------- Net assets available for benefits $ 468,156,406 $ 98,676,856 $ 44,867,093 ==================== ====================== ====================
Participant Directed (continued) ------------------------------------------------------------------- Mellon EB Dreyfus Daily Liquidity Crabbe Huson Assets Balance Fund Index Fund Equity Fund - ------ ------------------------- -------------------- ------------------ Investments (Notes 1 and 2): Common stock Common/collective trust $ 82,903,904 Interest in Certus Stable Value Fund Mutual funds $ 47,064,871 $ 16,949,424 Loans ------------------------- -------------------- ------------------ Total investments 47,064,871 82,903,904 16,949,424 Receivables: Interest Other ------------------------- -------------------- ------------------ Total receivables - - - Cash 93,573 597 ------------------------- -------------------- ------------------ Total assets 47,158,444 82,904,501 16,949,424 ------------------------- -------------------- ------------------ Liabilities - other 130,247 117,551 ------------------------- -------------------- ------------------ Net assets available for benefits $ 47,028,197 $ 82,904,501 $ 16,831,873 ========================= ==================== ==================
F-11 Dominion Resources, Inc. Employee Savings Plan Statement of Net Assets Available for Benefits by Fund December 31, 1997
Participant Directed (Cont'd) -------------------------------------------------------------------------------------- Premier Templeton Warburg Pincus Managed Foreign Emerging Loan Income Fund Fund Growth Fund Fund ------------------- ------------------- ------------------------ ------------------ Assets - ------ Investments (Notes 1 and 2): Common stock Common/collective trust $ 112,524 Interest in Certus Stable Value Fund Mutual funds $ 3,176,350 $ 11,224,996 $ 22,681,072 Loans 9,620,638 ------------------- ------------------- ------------------------ ------------------ Total investments 3,176,350 11,224,996 22,681,072 9,733,162 Receivables: Interest 513 Other ------------------- ------------------- ------------------------ ------------------ Total receivables - - - 513 Cash (2) (2,943) ------------------- ------------------- ------------------------ ------------------ Total assets 3,176,350 11,224,994 22,681,072 9,730,732 ------------------- ------------------- ------------------------ ------------------ Liabilities - Other 7,409 71,872 115,164 ------------------- ------------------- ------------------------ ------------------ Net Assets Available for benefits $ 3,168,941 $ 11,153,122 $ 22,565,908 $ 9,730,732 =================== =================== ======================== ==================
Non-Participant Directed ------------------- DRI Common Stock Fund ------------------- Assets - ------ Investments (Notes 1 and 2): Common stock $ 130,170,125 Common/collective trust 258,419 Interest in Certus Stable Value Fund Mutual funds Loans ------------------- Total investments 130,428,544 Receivables: Interest 3,594 Other 878,926 ------------------- Total receivables 882,520 Cash 4,067 ------------------- Total assets 131,315,131 ------------------- Liabilities - Other 85,948 ------------------- Net Assets Available for benefits $ 131,229,183 =================== F-12 Dominion Resources, Inc. Employee Savings Plan Statement of Net Assets Available for Benefits by Fund December 31, 1996
Participant Directed ------------------------------------------------------------------ DRI Common Certus Stable Assets Total Stock Fund Value Fund - ------ -------------------- ---------------------- -------------------- Investments (Notes 1 and 2): Common stock $ 228,662,129 $ 103,835,472 Common/collective trust 57,850,573 140,187 Interest in Certus Stable Value Fund 39,215,119 $ 39,215,119 Mutual funds 61,943,145 Loans 7,130,991 -------------------- ---------------------- -------------------- Total investments 394,801,957 103,975,659 39,215,119 Receivables: Interest 208,833 5,789 199,539 Other 1,442,346 619,314 -------------------- ---------------------- -------------------- Total receivables 1,651,179 625,103 199,539 Cash 2,709 -------------------- ---------------------- -------------------- Total assets 396,455,845 104,600,762 39,414,658 -------------------- ---------------------- -------------------- Liabilities - other 332,207 53,092 -------------------- ---------------------- -------------------- Net assets available for benefits $ 396,123,638 $ 104,547,670 $ 39,414,658 ==================== ====================== ====================
Participant Directed (continued) ------------------------------------------------------------------- Mellon EB Dreyfus Daily Liquidity Crabbe Huson Assets Balance Fund Index Fund Equity Fund - ------ ------------------------- -------------------- ------------------- Investments (Notes 1 and 2): Common stock Common/collective trust $ 57,233,393 Interest in Certus Stable Value Fund Mutual funds $ 39,029,616 $ 7,039,667 Loans ------------------------- -------------------- ------------------- Total investments 39,029,616 57,233,393 7,039,667 Receivables: Interest Other 78,519 ------------------------- -------------------- ------------------- Total receivables 78,519 - - Cash ------------------------- -------------------- ------------------- Total assets 39,108,135 57,233,393 7,039,667 ------------------------- -------------------- ------------------- Liabilities - other 29,775 ------------------------- -------------------- ------------------- Net assets available for benefits $ 39,108,135 $ 57,233,393 $ 7,009,892 ========================= ==================== ===================
F-13 Dominion Resources, Inc. Employee Savings Plan Statement of Net Assets Available for Benefits by Fund December 31, 1996
Participant Directed (Cont'd) ---------------------------------------------------------------------------------- Premier Templeton Warburg Pincus Managed Foreign Emerging Loan Assets Income Fund Fund Growth Fund Fund - ------ ------------------ ----------------- --------------------- ------------------ Investments (Notes 1 and 2): Common stock Common/collective trust $ 308,467 Interest in Certus Stable Value Fund Mutual funds $ 1,490,159 $ 4,537,727 $ 9,845,976 Loans 7,130,991 ------------------ ----------------- --------------------- ------------------ Total investments 1,490,159 4,537,727 9,845,976 7,439,458 Receivables: Interest 1,378 Other ------------------ ----------------- --------------------- ------------------ Total receivables - - - 1,378 Cash 1,666 1,043 ------------------ ----------------- --------------------- ------------------ Total assets 1,491,825 4,537,727 9,845,976 7,441,879 ------------------ ----------------- --------------------- ------------------ Liabilities - Other 19,035 56,127 110,353 ------------------ ----------------- --------------------- ------------------ Net Assets Available for benefits $ 1,472,790 $ 4,481,600 $ 9,735,623 $ 7,441,879 ================== ================= ===================== ==================
Non-Participant Directed ---------------------- DRI Common Assets Stock Fund - ------ ---------------------- Investments (Notes 1 and 2): Common stock $124,826,657 Common/collective trust 168,526 Interest in Certus Stable Value Fund Mutual funds Loans ---------------------- Total investments 124,995,183 Receivables: Interest 2,127 Other 744,513 ---------------------- Total receivables 746,640 Cash ---------------------- Total assets 125,741,823 ---------------------- Liabilities - Other 63,825 ---------------------- Net Assets Available for benefits $125,677,998 ======================
F-14 Dominion Resources, Inc. Employee Savings Plan Statement of Changes in Net Assets Available for Benefits by Fund For Year Ended December 31, 1997
Participant Directed ----------------------------------------------------------------- Certus DRI Common Stable Total Stock Fund Value Fund -------------------- ---------------------- ------------------- Investment income: Net appreciation/(depreciation) in fair value of investments (Note 5) $ 51,284,949 $ 9,298,012 $ 1,158 Dividend income 17,266,136 6,363,373 Interest and other income 3,610,729 19,056 2,633,317 -------------------- ---------------------- ------------------- Total investment income 72,161,814 15,680,441 2,634,475 -------------------- ---------------------- ------------------- Contributions: Participant (Note 1) 23,543,017 2,615,112 3,173,056 Participating companies (Note 1) 7,457,675 -------------------- ---------------------- ------------------- Total additions 103,162,506 18,295,553 5,807,531 -------------------- ---------------------- ------------------- Benefits paid to participants 30,900,004 6,676,627 4,887,344 Administrative expenses 165,007 39,392 20,203 -------------------- ---------------------- ------------------- Total deductions 31,065,011 6,716,019 4,907,547 -------------------- ---------------------- ------------------- Net increase/(decrease) before transfers 72,097,495 11,579,534 899,984 Interfund transfers, net - (17,650,575) 4,542,962 Transfer of participants' assets to/(from) the Plan (to)/from other plans: (64,727) 225,445 9,489 -------------------- ---------------------- ------------------- Net increase 72,032,768 (5,845,596) 5,452,435 Net assets available for benefits: Beginning of year 396,123,638 104,522,452 39,414,658 -------------------- ---------------------- ------------------- End of year $ 468,156,406 $ 98,676,856 $ 44,867,093 ==================== ====================== ===================
Participant Directed (continued) ------------------------------------------------------------------- Mellon EB Dreyfus Daily Liquidity Crabbe Huson Balance Fund Index Fund Equity Fund -------------------- ---------------------- -------------------- Investment income: Net appreciation/(depreciation) in fair value of investments (Note 5) $ 5,627,656 $ 18,009,278 $ 2,403,589 Dividend income 848,922 1,532,321 33,431 Interest and other income 245,734 -------------------- ---------------------- -------------------- Total investment income 6,722,312 19,541,599 2,437,020 -------------------- ---------------------- -------------------- Contributions: Participant (Note 1) 2,565,734 5,493,143 3,056,811 Participating companies (Note 1) -------------------- ---------------------- -------------------- Total additions 9,288,046 25,034,742 5,493,831 -------------------- ---------------------- -------------------- Benefits paid to participants 3,327,585 4,290,462 349,371 Administrative expenses 13,516 47,181 4,608 -------------------- ---------------------- -------------------- Total deductions 3,341,101 4,337,643 353,979 -------------------- ---------------------- -------------------- Net increase/(decrease) before transfers 5,946,945 20,697,099 5,139,852 Interfund transfers, net 2,097,143 5,045,450 4,657,377 Transfer of participants' assets to/(from) the Plan (to)/from other plans: (124,026) (71,441) 24,752 -------------------- ---------------------- -------------------- Net increase 7,920,062 25,671,108 9,821,981 Net assets available for benefits: Beginning of year 39,108,135 57,233,393 7,009,892 -------------------- ---------------------- -------------------- End of year $ 47,028,197 $ 82,904,501 $ 16,831,873 ==================== ====================== ====================
F-15 Dominion Resources, Inc. Employee Savings Plan Statement of Changes in Net Assets Available for Benefits by Fund For Year Ended December 31, 1997
Participant Directed (Cont'd) ---------------------------------------------------------------------------------- Templeton Warburg Pincus Premier Foreign Emerging Managed Loan Income Fund Growth Fund Income Fund Fund ------------------- ---------------------- ------------------- --------------- Investment income: Net appreciation/(depreciation) in fair value of investments (Note 5) $ 101,969 $ 2,946,684 $ 56,494 Dividend income 310,931 133,661 Interest and other income 10,853 675,379 ------------------- ---------------------- ------------------- --------------- Total investment income 412,900 2,946,684 201,008 675,379 ------------------- ---------------------- ------------------- --------------- Contributions: Participant (Note 1) 1,792,031 4,413,284 433,846 Participating companies (Note 1) ------------------- ---------------------- ------------------- --------------- Total additions 2,204,931 7,359,968 634,854 675,379 ------------------- ---------------------- ------------------- --------------- Benefits paid to participants 500,694 649,302 182,751 789,389 Administrative expenses 3,046 6,716 620 (24,451) ------------------- ---------------------- ------------------- --------------- Total deductions 503,740 656,018 183,371 764,938 ------------------- ---------------------- ------------------- --------------- Net increase/(decrease) before transfers 1,701,191 6,703,950 451,483 (89,559) Interfund transfers, net 4,957,435 6,053,378 1,245,035 2,321,434 Transfer of participants' assets to/(from) the Plan (to)/from other plans: 12,896 72,957 (367) 56,978 ------------------- ---------------------- ------------------- --------------- Net increase 6,671,522 12,830,285 1,696,151 2,288,853 Net assets available for benefits: Beginning of year 4,481,600 9,735,623 1,472,790 7,441,879 ------------------- ---------------------- ------------------- --------------- End of year $ 11,153,122 $ 22,565,908 $ 3,168,941 $ 9,730,732 =================== ====================== =================== ===============
Non-Participant Directed --------------------- DRI Common Stock Fund --------------------- Investment income: Net appreciation/(depreciation) in fair value of investments (Note 5) $ 12,840,109 Dividend income 8,043,497 Interest and other income 26,390 --------------------- Total investment income 20,909,996 --------------------- Contributions: Participant (Note 1) Participating companies (Note 1) 7,457,675 --------------------- Total additions 28,367,671 --------------------- Benefits paid to participants 9,246,479 Administrative expenses 54,176 --------------------- Total deductions 9,300,655 --------------------- Net increase/(decrease) before transfers 19,067,016 Interfund transfers, net (13,269,639) Transfer of participants' assets to/(from) the Plan (to)/from other plans: (271,410) --------------------- Net increase 5,525,967 Net assets available for benefits: Beginning of year 125,703,216 --------------------- End of year $ 131,229,183 =====================
F-16 Dominion Resources, Inc. Employee Savings Plan Statement of Changes in Net Assets Available for Benefits by Fund For Year Ended December 31, 1996
Participant Directed ---------------------------------------------------------- Interest America's DRI Common Bearing Utility Total Stock Fund Fund Fund -------------------- -------------------- ------------------ ------------------ Investment income: Net appreciation/(depreciation) in fair value of investments (Note 5) $ (7,870,296) $ (10,396,563) $ 272,572 $ (563,467) Dividend income 18,287,095 7,563,811 233,931 Interest and other income 2,047,417 28,611 444,739 1,910 -------------------- -------------------- ------------------ ------------------ Total investment income 12,464,216 (2,804,141) 717,311 (327,626) -------------------- -------------------- ------------------ ------------------ Contributions: Participant (Note 1) 22,092,365 5,206,623 1,174,359 777,461 Participating companies (Note 1) 7,752,850 -------------------- -------------------- ------------------ ------------------ Total additions 42,309,431 2,402,482 1,891,670 449,835 -------------------- -------------------- ------------------ ------------------ Benefits paid to participants 34,560,571 12,303,448 3,348,095 835,652 Administrative expenses 417,964 103,844 50,676 5,740 -------------------- -------------------- ------------------ ------------------ Total deductions 34,978,535 12,407,292 3,398,771 841,392 -------------------- -------------------- ------------------ ------------------ Net increase/(decrease) before transfer 7,330,896 (10,004,810) (1,507,101) (391,557) Interfund transfers, net - (16,249,140) 240,198 (2,001,426) Transfer of participants' assets to/(from) the Plan (to)/from other plans: 2,224,545 889,424 42,940 Transfer to new trust funds - (37,015,507) (15,992,207) -------------------- -------------------- ------------------ ------------------ Net increase/(decrease) 9,555,441 (25,364,526) (38,239,470) (18,385,190) Net assets available for benefits: Beginning of year 386,568,197 129,886,978 38,239,470 18,385,190 -------------------- -------------------- ------------------ ------------------ End of year $ 396,123,638 $ 104,522,452 $ - $ - ==================== ==================== ================== ==================
Participant Directed (continued) ---------------------------------------------------------- Equity Certus Index Balanced Stable Fund Fund Value Fund ------------------ ------------------ ------------------- Investment income: Net appreciation/(depreciation) in fair value of investments (Note 5) $ 3,303,646 $ 321,938 $ - Dividend income 261,781 Interest and other income 11,505 4,941 1,239,187 ------------------ ------------------ ------------------- Total investment income 3,315,151 588,660 1,239,187 ------------------ ------------------ ------------------- Contributions: Participant (Note 1) 2,242,536 973,740 2,138,842 Participating companies (Note 1) ------------------ ------------------ ------------------- Total additions 5,557,687 1,562,400 3,378,029 ------------------ ------------------ ------------------- Benefits paid to participants 2,067,437 971,930 1,375,339 Administrative expenses 20,883 6,294 50,613 ------------------ ------------------ ------------------- Total deductions 2,088,320 978,224 1,425,952 ------------------ ------------------ ------------------- Net increase/(decrease) before transfer 3,469,367 584,176 1,952,077 Interfund transfers, net 7,006,247 1,600,348 93,991 Transfer of participants' assets to/(from) the Plan (to)/from other plans: 353,083 Transfer to new trust funds (48,736,048) (22,018,467) 37,015,507 ------------------ ------------------ ------------------- Net increase/(decrease) (38,260,434) (19,833,943) 39,414,658 Net assets available for benefits: Beginning of year 38,260,434 19,833,943 - ------------------ ------------------ ------------------- End of year $ - $ - $ 39,414,658 ================== ================== ===================
F-17 Dominion Resources, Inc. Employee Savings Plan Statement of Changes in Net Assets Available for Benefits by Fund For Year Ended December 31, 1996
Participant Directed (Cont'd) ---------------------------------------------------------------------------------------- Mellon EB Templeton Warburg Pincus Dreyfus Daily Liquidity Crabbe Huson Foreign Emerging Balance Fund Index Fund Equity Fund Income Fund Growth Fund ---------------------------------- ---------------- ---------------------------------- Investment income: Net appreciation/(depreciation) in fair value of investments (Note 5) $ 2,301,165 $ 5,020,524 $ 289,700 $ 185,202 $ 278,625 Dividend income 768,875 875,885 23,398 79,864 Interest and other income 35,183 9,141 ---------------- ----------------- ---------------- --------------- ------------------ Total investment income 3,105,223 5,905,550 313,098 265,066 278,625 ---------------- ----------------- ---------------- --------------- ------------------ Contributions: Participant (Note 1) 1,330,274 2,786,313 1,742,644 813,774 2,660,889 Participating companies (Note 1) ---------------- ----------------- ---------------- --------------- ------------------ Total additions 4,435,497 8,691,863 2,055,742 1,078,840 2,939,514 ---------------- ----------------- ---------------- --------------- ------------------ Benefits paid to participants 792,870 1,197,651 36,828 24,142 40,385 Administrative expenses 32,818 50,235 2,298 1,067 3,823 ---------------- ----------------- ---------------- --------------- ------------------ Total deductions 825,688 1,247,886 39,126 25,209 44,208 ---------------- ----------------- ---------------- --------------- ------------------ Net increase/(decrease) before transfer 3,609,809 7,443,977 2,016,616 1,053,631 2,895,306 Interfund transfers, net (2,539,280) 1,021,192 4,984,590 3,418,728 6,814,803 Transfer of participants' assets to/(from) the Plan (to)/from other plans: 26,932 32,176 8,686 9,241 25,514 Transfer to new trust funds 38,010,674 48,736,048 ---------------- ----------------- ---------------- --------------- ------------------ Net increase/(decrease) 39,108,135 57,233,393 7,009,892 4,481,600 9,735,623 Net assets available for benefits: Beginning of year - - - - - ---------------- ----------------- ---------------- --------------- ------------------ End of year $ 39,108,135 $ 57,233,393 $ 7,009,892 $ 4,481,600 $ 9,735,623 ================ ================= ================ =============== ==================
Non-Participant Participant Directed (Cont'd) Directed ------------------------------- ------------------- Premier Managed Loan DRI Common Income Fund Fund Stock Fund ------------------------------- ------------------- Investment income: Net appreciation/(depreciation) in fair value of investments (Note 5) $ 11,939 $ (8,895,577) Dividend income 24,281 8,455,269 Interest and other income 255,615 16,585 --------------- -------------- ------------------- Total investment income 36,220 255,615 (423,723) --------------- -------------- ------------------- Contributions: Participant (Note 1) 244,910 Participating companies (Note 1) 7,752,850 --------------- -------------- ------------------- Total additions 281,130 255,615 7,329,127 --------------- -------------- ------------------- Benefits paid to participants 3,591 (82,311) 11,645,514 Administrative expenses 301 (29,000) 118,372 --------------- -------------- ------------------- Total deductions 3,892 (111,311) 11,763,886 --------------- -------------- ------------------- Net increase/(decrease) before transfer 277,238 366,926 (4,434,759) Interfund transfers, net 1,195,210 3,139,289 (8,724,750) Transfer of participants' assets to/(from) the Plan (to)/from other plans: 342 9,478 826,729 Transfer to new trust funds --------------- -------------- ------------------- Net increase/(decrease) 1,472,790 3,515,693 (12,332,780) Net assets available for benefits: Beginning of year - 3,926,186 138,035,996 --------------- -------------- ------------------- End of year $ 1,472,790 $7,441,879 $ 125,703,216 =============== ============== ===================
F-18 Dominion Resources, Inc. Employee Savings Plan Statement of Changes in Net Assets Available for Benefits by Fund For Year Ended December 31, 1995
Participant Directed -------------------------------------------------------------------- Interest America's Equity DRI Common Bearing Utility Index Total Stock Fund Fund Fund Fund ----------------- ----------------- ---------------- -------------- --------------- Investment income: Net appreciation/(depreciation) in fair value of investments (Note 5) $50,082,305 $ 18,176,998 $ 2,355,598 $3,769,694 $7,719,012 Dividend income 19,244,113 8,303,336 752,087 378,731 Interest and other income 892,225 34,512 476,794 3,225 29,425 ----------------- ----------------- ---------------- -------------- --------------- Total investment income 70,218,643 26,514,846 2,832,392 4,525,006 8,127,168 ----------------- ----------------- ---------------- -------------- --------------- Contributions: Participant (Note 1) 22,329,543 11,092,552 3,402,032 1,944,346 3,890,588 Participating companies (Note 1) 8,363,366 ----------------- ----------------- ---------------- -------------- --------------- Total additions 100,911,552 37,607,398 6,234,424 6,469,352 12,017,756 ----------------- ----------------- ---------------- -------------- --------------- Benefits paid to participants 40,517,577 14,078,153 5,714,483 1,137,853 2,958,019 Administrative expenses 346,936 97,263 87,264 12,595 30,450 ----------------- ----------------- ---------------- -------------- --------------- Total deductions 40,864,513 14,175,416 5,801,747 1,150,448 2,988,469 ----------------- ----------------- ---------------- -------------- --------------- Net increase/(decrease) before transfers 60,047,039 23,431,982 432,677 5,318,904 9,029,287 Interfund transfers, net - (12,006,936) (1,836,902) (679,631) 10,644,834 Transfer of participants' assets to/(from) the Plan (to)/from other plans: 325,430 146,033 24,765 ----------------- ----------------- ---------------- -------------- --------------- Net increase/(decrease) 60,372,469 11,571,079 (1,379,460) 4,639,273 19,674,121 Net assets available for benefits: Beginning of year 326,195,728 118,315,899 39,618,930 13,745,917 18,586,313 ----------------- ----------------- ---------------- -------------- --------------- End of year $386,568,197 $129,886,978 $38,239,470 $18,385,190 $38,260,434 ================= ================= ================ ============== ===============
Non-Participant Participant Directed (Cont'd) Directed ------------------------------- --------------------- Balanced Loan DRI Common Fund Fund Stock Fund --------------- -------------- --------------------- Investment income: Net appreciation/(depreciation) in fair value of investments (Note 5) $1,622,941 - $ 16,438,062 Dividend income 1,345,653 8,464,306 Interest and other income 5,021 318,664 24,584 --------------- -------------- --------------------- Total investment income 2,973,615 318,664 24,926,952 --------------- -------------- --------------------- Contributions: Participant (Note 1) 2,000,025 Participating companies (Note 1) 8,363,366 --------------- -------------- --------------------- Total additions 4,973,640 318,664 33,290,318 --------------- -------------- --------------------- Benefits paid to participants 1,594,519 139,348 14,895,202 Administrative expenses 12,025 8,190 99,149 --------------- -------------- --------------------- Total deductions 1,606,544 147,538 14,994,351 --------------- -------------- --------------------- Net increase/(decrease) before transfers 3,367,096 171,126 18,295,967 Interfund transfers, net 4,530,386 (1,142,676) 490,925 Transfer of participants' assets to/(from) the Plan (to)/from other plans: 154,632 --------------- -------------- --------------------- Net increase/(decrease) 7,897,482 (971,550) 18,941,524 Net assets available for benefits: Beginning of year 11,936,461 4,897,736 119,094,472 --------------- -------------- --------------------- End of year $19,833,943 $ 3,926,186 $ 138,035,996 =============== ============== =====================
F-19 8. PLAN INTEREST IN THE CERTUS STABLE VALUE FUND The Plan's investments are in a Master Trust which was established for the investment of assets for the Plan and several other Company sponsored plans (the Virginia Power Hourly Employee Savings Plan and the Dominion Subsidiary Savings Plan). The assets of the Master Trust are held by Mellon Bank. As of December 31, 1997 and 1996, the assets of the Master Trust were separately maintained by each Company sponsored plan, with the exception of the Certus Stable Value Fund (Certus Fund). As of December 31, 1997 and 1996, the Plan's interest in the net assets of the Certus Fund was approximately 70% and 69%, respectively. Investment income and administrative expenses relating to the Certus Fund are allocated to the individual plans based upon average monthly balances invested by each Plan. The following table presents the fair value of the undivided investments in the Certus Fund: December 31, Investments at fair value: 1997 1996 ------------------------------------ Guaranteed Investment Contracts $ 58,085,100 $ 52,832,197 Common/collective trust 7,012,518 5,098,631 ----------------- ----------------- Total $ 65,097,618 $ 57,930,828 ================= ================= Investment income for the Certus Stable Value December 31, Fund is as follows: 1997 1996 ------------------------------------ Net appreciation in fair value of investments $ 426,972 $ 792,346 Interest 3,883,054 1,928,461 ----------------- ----------------- Total $ 4,310,026 $ 2,720,807 ================= ================= 9. VALUATION OF INVESTMENT CONTRACTS Effective June 1, 1996, the Plan adopted the provisions of AICPA Statement of Position 94-4, "Reporting of Investment Contracts Held by Health and Welfare Benefit Plans and Defined-Contribution Pension Plans". The Plans investment contracts are fully-benefit responsive and have been presented on the financial statements at contract value. The Plan's portion of the contracts have an estimated value of $44,875,042 and $39,404,775 at December 31, 1997 and 1996, respectively. The underlying investment contracts are carried at variable and fixed rates with expiration dates through 2007. The variable rates are reviewed and adjusted quarterly. The average yield on the contracts are estimated at 6.57% and 6.54% at December 31, 1997 and December 31, 1996. 10. TAX STATUS The Plan is a qualified employees' profit sharing trust under Sections 401(a) and 401(k) of the Internal Revenue Code and, as such, is exempt from Federal income taxes under Section 501(a). Pursuant to Section 402(a) of the Internal Revenue Code, a participant is not taxed on the income and pre-tax contributions allocated to the participant's account until such time as the participant or the participant's beneficiaries receive distributions from the Plan. The Plan obtained its latest determination letter on November 9, 1993, in which the Internal Revenue Service stated that the Plan, as then designed, was in compliance with the applicable requirements of the Internal Revenue Code. The Plan has been amended since receiving the determination letter. However, the Company believes that the Plan is currently designed and operating in compliance with the applicable requirements of the Internal Revenue Code. F-20 11. SUBSEQUENT EVENT During the first quarter of 1998, the Board of Directors of the Company approved an amendment to the Plan that adopts a KSOP provision (combines the features of a 401K and an Employee Stock Ownership Plan) effective May 1, 1998. The KSOP allows participants the choice of (1) receiving cash dividends paid on vested shares held in their DRI Common Stock Fund or (2) continuing to reinvest the dividends in the fund. In addition, effective May 1, 1998, the new maximum contribution rates for hourly employees are 15 percent for pre-tax; 20 percent for after-tax, and 2 to 20 percent for combined contributions. F-21 DOMINION RESOURCES, INC. EMPLOYEE SAVINGS PLAN SUPPLEMENTAL SCHEDULE AS OF DECEMBER 31, 1997 ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
Current Description Cost Value - -------------------------------------------------------- ----------------------- ------------------------ Dominion Resources, Inc., Common Stock $ 209,371,600 $ 227,358,045 ----------------------- ------------------------ Interest in Certus Stable Value Fund Certus Stable Value Fund 44,640,390 44,640,390 ----------------------- ------------------------ Common/Collective Trusts DRI Common Stock Fund 451,360 451,360 Loan Fund 112,524 112,524 Mellon S&P 500 Index Daily Fund 82,349,304 82,903,904 ----------------------- ------------------------ 82,913,188 83,467,788 ----------------------- ------------------------ Mutual Funds Crabbe Huson Equity Fund Inc. 17,196,836 16,949,424 Dreyfus Balanced Fund Inc. 47,162,591 47,064,871 Premier Managed Income Fund 3,171,878 3,176,350 Templeton Foreign Fund Inc. 11,352,747 11,224,996 Warburg Pincus Emerging Growth Fund 22,384,540 22,681,072 ----------------------- ------------------------ 101,268,592 101,096,713 ----------------------- ------------------------ Loans to Participants 9,620,638 9,620,638 ----------------------- ------------------------ Total Assets Held for Investment $ 447,814,408 $ 466,183,574 ======================= ========================
F-22 DOMINION RESOURCES, INC. EMPLOYEE SAVINGS PLAN SUPPLEMENTAL SCHEDULE AS OF DECEMBER 31, 1997 ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS The assets of the Dominion Resources, Inc. Employee Savings Plan were combined with the assets of the Virginia Power Hourly Employee Savings Plan and the Dominion Subsidiary Savings Plan in a master trust for investment purposes until June 1, 1996. Effective June 1, 1996, a new master trust was established which does not combine the assets of the Dominion Resources, Inc. Employee Savings Plan with the assets of the Virginia Power Hourly Employee Savings Plan and the Dominion Subsidiary Savings Plan, except for the Certus Stable Value Fund. Such schedules report the 5% transactions, which transpired in 1997 for the master trusts, were filed in paper format as Exhibit 99(i). F-23 EX-99 3 EXHIBIT 99(II) Exhibit 99(ii) INDEPENDENT AUDITORS' CONSENT We consent to the incorporation by reference in Registration Statement No. 333-09167 of Dominion Resources, Inc. on Form S-8 of our report dated May 29, 1998, appearing in this Annual Report on Form 11-K of Dominion Resources, Inc. Employee Savings Plan for the year ended December 31, 1997. DELOITTE & TOUCHE LLP Richmond, Virginia June 10, 1998 EX-99 4 EXHIBIT 99(III) 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 (Mark One): X ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the fiscal year ended December 31, 1997 OR TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from __________ to ___________ Commission File number 333-09167 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: Dominion Subsidiary Savings Plan B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: DOMINION RESOURCES, INC. P. O. Box 26532 901 East Byrd Street - Suite 1700 Richmond, Virginia 23261-6111 DOMINION SUBSIDIARY SAVINGS PLAN. FINANCIAL STATEMENTS TABLE OF CONTENTS Pages Independent Auditors' Report F-2 Financial Statements: Statements of Net Assets Available for Benefits as of December 31, 1997 and 1996 F-3 Statements of Changes in Net Assets Available for Benefits for the Years Ended December 31, 1997, 1996 and for the period October 1, 1995 (Inception) to December 31, 1995 F-4 Notes to Financial Statements F-5 - F-21 Supplemental Schedules as of December 31, 1997: Item 27a - Schedule of Assets Held for Investment Purposes F-22 Item 27d - Schedule of Reportable Transactions F-23 Schedules Omitted: The following schedules are omitted because of the absence of the conditions under which they are required, or because the required information is included in the financial statements or notes thereto: Schedules I, II and III. F-1 INDEPENDENT AUDITORS' REPORT To the Organization and Compensation Committee of the Board of Directors of Dominion Resources, Inc. We have audited the accompanying financial statements of the Dominion Subsidiary Savings Plan (the Plan) as of December 31, 1997 and 1996 and for the years ended December 31, 1997 and 1996 and the period October 1, 1995 (inception) to December 31, 1995, listed in the Table of Contents on page F-1. 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, such financial statements 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 net assets available for plan benefits for the years ended December 31, 1997 and 1996 and the period October 1, 1995 to December 31, 1995 in conformity with generally accepted accounting principles. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplemental schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements, but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. These schedules are the responsibility of the Plan's management. Such schedules have been subjected to the auditing procedures applied in our audit of the basic 1997 financial statements and, in our opinion, are fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole. As discussed in Note 10, the accompanying 1996 financial statements have been restated to reflect an adjustment for a transfer of plan assets. Richmond, Virginia May 29, 1998 F-2 DOMINION SUBSIDIARY SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, ASSETS 1997 1996 ------ ---------------- ----------------------- (As Restated - See Note 10) ---------------- ----------------------- Investments: Dominion Resources, Inc., Common Stock $1,531,994 $ 345,307 Common/Collective Trusts 1,489,609 686,176 Mutual Funds 2,079,050 794,651 Loans To Participants at Face Value 231,367 4,001 ---------------- ----------------------- Total Investments 5,332,020 1,830,135 Receivables: Interest 4,657 4,503 Contributions: Participants 47,803 30,679 Participating companies 14,299 11,025 ---------------- ----------------------- Total receivables 66,759 46,207 Other 3,777 4,859 ---------------- ----------------------- Total assets 5,402,556 1,881,201 ---------------- ----------------------- LIABILITIES Other Liabilities 13,606 ---------------- ----------------------- Net Assets Available for Benefits $5,402,556 $1,867,595 ================ =======================
The accompanying notes are an integral part of the financial statements. F-3 DOMINION SUBSIDIARY SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
For the Period October 1, 1995 For the Years (Inception) to Ended December 31 December 31, -------------------------------------------------------------------- 1997 1996 1995 ----------------- -------------------------- ----------------------- Investment income: (As Restated - See Note 10) Dividends $ 108,309 $ 15,570 $ 75 Interest and other 63,535 2,589 366 Net appreciation in fair value of investments 577,340 29,599 363 ----------------- -------------------------- ----------------------- Total investment income 749,184 47,758 804 Contributions: Participants 1,080,983 625,638 59,725 Participating companies 397,339 191,750 26,161 ----------------- -------------------------- ----------------------- Total additions 2,227,506 865,146 86,690 ----------------- -------------------------- ----------------------- Benefits paid to participants 277,929 118,266 Administrative expense 6,314 2,781 ----------------- -------------------------- ----------------------- Total Deductions 284,243 121,047 ----------------- -------------------------- ----------------------- Net increase before transfer 1,943,263 744,099 86,690 Transfer of participants' assets to the Plan from other plans 1,591,698 1,008,659 28,147 Net assets available for benefits: Beginning of year 1,867,595 114,837 ----------------- -------------------------- ----------------------- End of year $5,402,556 $1,867,595 $114,837 ================= ========================== =======================
The accompanying notes are an integral part of the financial statements. F-4 NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 1997 AND 1996 1. DESCRIPTION OF PLAN The following description of the Dominion Subsidiary Savings Plan ( the "Plan") provides only general information. Participants should refer to the Plan document for a more complete description of the Plan's provisions. a. GENERAL - The Plan is a defined contribution pension plan covering all employees of Dominion Land Management Company; Carthage Energy Services, Inc.; Waterford Management Company; Stonehouse Management Company; Saxon Mortgage, Inc.; Meritech Mortgage Services, Inc.; America's MoneyLine, Inc.; Mortgage Finance, Inc.; Governor's Land Management Company, Inc.; Old North State Management Company; Dominion Appalachian Development, Inc,; and Wolverine Gas and Oil Company, Inc. Employees are eligible who have six months of service and are age 18 or older and are scheduled to work or actually work at least 1,000 hours a year as a regular full-time employee or part-time employee. Dominion Capital, Inc. (the "Company"), a wholly-owned subsidiary of Dominion Resources (DRI), is the designated Plan sponsor and fiduciary . DRI is the plan administrator. Mellon Bank serves as the trustee of the Plan. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). b. CONTRIBUTIONS - Prior to June 1, 1996: Under the terms of the Plan, participants could make contributions to the Plan with before-tax dollars. A maximum of 10% of the participant's eligible earnings could be invested in the Plan. The Participating Companies contribute a matching amount equivalent to 50% of each participant's contributions, not to exceed 3% of the participant's eligible earnings, which is used to purchase Dominion Resources common stock. Effective June 1, 1996: A maximum of 17% of the participant's eligible earnings can be invested in the Plan. Of this 17%, up to 12% can be invested on a tax-deferred basis. The Participating Companies contribute a matching amount equivalent to 50% of each participant's contributions, not to exceed 3% of the participant's eligible earnings, which is used to purchase Dominion Resources common stock. c. PARTICIPANT ACCOUNTS - Each participant's account is credited with the participant's contributions and withdrawals, as applicable, and allocations of (a) the Company's contributions and (b) Plan earnings, and debited with an allocation of administrative expenses. Allocations are based on participant earnings or account balances, as defined. Forfeited balances of terminated participants' nonvested accounts are used to reduce future Company contributions. The benefit to which a participant is entitled is the benefit that can be provided from the participant's account. d. PLAN PARTICIPANTS - There were 422 and 203 participants in the Plan as of December 31, 1997 and 1996, respectively. e. VESTING - Prior to June 1, 1996: Participants become vested in their own contributions immediately and in the Participating Companies' matching contributions after F-5 three years of vesting services. Matching contributions vest immediately when the participants meet any one of the following criteria; reach the age of 55, retire, die while employed by the Participating Company, become totally and permanently disabled as determined by the Company or lose his/her job due to a Company-ordered reduction in force. Effective June 1, 1996: Participants become vested in their own contributions and the earnings on these amounts immediately and in the Participating Companies' matching contributions and earnings after 3 years of service. f. INVESTMENT OPTIONS - Upon enrollment in the Plan, a participant may direct employee contributions in any option (except the loan fund) in 1% increments totaling to 100%. Changes in investment options may be made at any time and become effective with the subsequent pay period. Participants can make unlimited transfers among existing fund balances. Participating Companies' matching contributions are originally invested in DRI Common Stock. However, participants who are under age 50 may transfer 50% of the value of the stock in the Company Match Account into another investment option, while participants who are age 50 and over may transfer 100% of the value of the Company Match Account. Prior to June 1, 1996: The Plan provides for employee contributions to be invested in the following funds: Dominion Resources, Inc. (DRI) Common Stock Fund - All investments are in DRI Common Stock. Interest-Bearing Fund - This fund's primary investments are in high quality fixed income securities. Balanced Fund - Thirty percent of this fund is invested in equity securities and the residual is invested in fixed income securities. America's Utility Fund - Investments are in the common stock of electric, gas and telephone utilities. America's Utility Fund is sponsored and administered by a subsidiary of Dominion Resources. Equity Index Fund - The fund invests primarily in the 500 stocks of the S&P 500 and may also invest in exchange traded options and financial futures. Loan Fund - Participants are allowed to borrow against their vested balance and repay the amount over a one to five year period. Participating Companies' matching contributions are invested only in the DRI Common Stock Fund and cannot be transferred to other funds. Effective June 1, 1996: The Plan provides for employee contributions to be invested in the following funds: Dominion Resources, Inc. (DRI) Common Stock Fund - All investments are in DRI Common Stock F-6 Certus Stable Value Fund - The fund invests in investment contracts of insurance companies and commercial banks and U.S. Government or agency backed bonds. Premier Managed Income Fund - The fund invests mainly in U. S. Government securities and corporate bonds, but may also invest in foreign securities. Dreyfus Balanced Fund, Inc. - The fund invests in equities, fixed income securities and cash equivalents. Equity Index Fund - The fund invests primarily in the 500 stocks of the S&P 500 and may also invest in exchange traded options and financial futures. The Crabbe Huson Equity Fund, Inc. - The fund may invest in domestic and foreign securities. Warburg Pincus Emerging Growth Fund - The fund invests in equity securities of primarily domestic emerging growth companies. Templeton Foreign Fund - The fund invests primarily in foreign securities. Loan Fund - Participants are allowed to borrow against their vested balance and repay the amount over a one to five year period. g. LOANS TO PARTICIPANTS - The Plan has an established loan feature; however, loans were not available to participants until June 1, 1996. Participants are eligible to secure loans against their Plan assets. The maximum loan amount is the lesser of: o 50% of the vested account balance or o $50,000 (reduced by the maximum outstanding loan balance during the prior twelve months) The loans are interest-bearing at one percentage point above the prime rate of interest. The rate is determined every quarter, however, the rate is fixed at the inception of the loan for the life of the loan. Participants make repayments to the Plan on a monthly basis. Any defaults in loans result in a reclassification of the remaining loan balances as taxable distributions to the participants. h. PAYMENT OF BENEFITS - On termination of service, a participant may elect to receive either a lump-sum amount equal to the value of the participant's vested interest in his or her account, or annual installments over a ten year period. There were no amounts payable to such participants at December 31, 1997 and 1996 i. 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 reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. F-7 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. VALUATION OF INVESTMENTS: (1) Stock Fund - the investments of the Stock Fund are stated at fair value based on closing sales prices reported on recognized securities exchanges on the last business day of the year, or for listed securities having no sales reported and for unlisted securities, upon the last reported bid prices on that date. The mutual funds are valued at quoted market prices which represent the net asset values of shares held by the Plan at year-end. (2) Common/Collective Trusts - Investments in common/collective trust funds (funds) are stated at estimated fair values, which have been determined based on the unit values of the funds. Unit values are determined by the bank sponsoring such funds by dividing the fund's net assets by its units outstanding at the valuation dates. (3) Investment Contracts - The guaranteed investment contracts within the Certus Stable Value Fund are valued at contract value. Contract value represents contributions made under the contract, plus earnings, less Plan withdrawals and administrative expense. (4) Mutual Funds - Investments in mutual funds are valued at quoted market prices which represent the net asset values of shares held by the Plan at year-end. (5) Loans to Participants - The loans to participants are valued at cost plus accrued interest which approximates fair value. (b) INVESTMENT INCOME - Dividend income is recognized on the ex-dividend date. (c) EXPENSES - The Plan's expenses are accrued as incurred and paid by the Plan, as provided by the Plan document. 3. INVESTMENTS EXCEEDING 5% OF NET ASSETS The following table represents the fair value of investments exceeding 5% of the Plan's net assets at each year end:
1997 1996 (As Restated - See Note 10) ------------------------ ------------------------ Investment at Fair Value as Determined by Quoted Market Price: DRI Common Stock $1,531,994 $345,307 Dreyfus Balance 627,790 264,502 Crabbe Huson Equity 549,158 170,022 Templeton Foreign 96,963 Warburg Pincus Emerging Growth 537,412 215,027 ======================== ======================== $3,246,354 $1,091,821 ======================== ======================== Investments at Estimated Fair Value: Certus Stable Value $625,665 $303,769 Mellon EB Daily Liquidity Index 844,580 309,981 ======================== ======================== $1,470,245 $613,750 ======================== ========================
F-8 4. NET APPRECIATION IN FAIR VALUE OF INVESTMENTS The Plan's investments (including investments bought, sold, as well as held during the year) appreciated in value by $577,340 in 1997 and $29,599 in 1996, as follows:
1997 1996 1995 --------------------- -------------------- --------------------- a. Realized Gains/(Loss) Investment at Fair Value as Determined by Quoted Market Price: Common Stock $ -4,600 $ -132 Mutual Funds 252,293 13,230 --------------------- -------------------- --------------------- 247,693 13,098 Investments at Estimated Fair Value: Common/Collective Trust Funds 12,752 153 --------------------- -------------------- --------------------- Net change in fair value $260,445 $13,251 ===================== ==================== ===================== b. Unrealized Gains/(Loss) Investment at Fair Value as Determined by Quoted Market Price: Common Stock $191,388 $ 218 $161 Mutual Funds -23,397 4,230 202 ---------------------------------------------------------------------- 167,991 4,448 363 Investments at Estimated Fair Value: Common/Collective Trust Funds 148,904 11,900 --------------------- -------------------- --------------------- Net change in fair value $316,895 $16,348 $363 ===================== ==================== =====================
5. CHANGE IN TRUSTEE Effective June 1, 1996, Mellon Trust, Mellon Bank, N.A. became the Trustee of the Plan. The prior Trustee was Signet Trust Company with respect to the DRI Common Stock, America's Utility, Equity Index, and Balanced Fund. NationsBank served as Trustee of the Plan with respect to the Interest Bearing Fund. F-9 6. PLAN TERMINATION Although it has not expressed any intention 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 set forth in ERISA. In the event of any termination of the Plan, or upon complete or partial discontinuance of contributions, the accounts of each affected participant shall become fully vested. 7. BY FUND INFORMATION The net assets available for benefits on a by fund basis and the changes in net assets available for benefits on a by fund basis are as follows: F-10 DOMINION SUBSIDIARY SAVINGS PLAN Statement of Net Assets Available for Benefits by Fund December 31, 1997
- --------------------------------------------------------------------------------------------------------------------------- Participant Directed ---------------------------------------------------------------------- DRI Common Certus Stable Dreyfus Assets Total Stock Fund Value Fund Balance Fund - ------ - --------------------------------------------------------------------------------------------------------------------------- Investments: Common Stock $1,531,994 $841,960 Common/Collective Trust 1,489,609 10,695 $625,665 Mutual Funds 2,079,050 $627,790 Loans Receivable 231,367 ---------------- --------------------- --------------------- ------------------------ Total Investments 5,332,020 852,655 625,665 627,790 Receivables: Interest Receivable 4,657 64 3,271 Contribution Receivable: Participants 47,803 4,671 4,565 6,350 Participating companies 14,299 ---------------- --------------------- --------------------- ------------------------ Total receivables 66,759 4,735 7,836 6,350 Other 3,777 141 ---------------- --------------------- --------------------- ------------------------ Total Assets 5,402,556 857,531 633,501 634,140 ---------------- --------------------- --------------------- ------------------------ Other Liabilities ---------------- --------------------- --------------------- ------------------------ Net Assets Available for Benefits $5,402,556 $857,531 $633,501 $634,140 ================ ===================== ===================== ========================
- -------------------------------------------------------------------------------- Participant Directed ------------------------------------------ Mellon EB Daily Liquidity Crabbe Huson Assets Index Fund Equity Fund - ------ - -------------------------------------------------------------------------------- Investments: Common Stock Common/Collective Trust $844,580 Mutual Funds $549,158 Loans Receivable -------------------- ------------------- Total Investments 844,580 549,158 Receivables: Interest Receivable Contribution Receivable: Participants 9,721 8,306 Participating companies -------------------- ------------------- Total receivables 9,721 8,306 Other 559 -------------------- ------------------- Total Assets 854,301 558,023 -------------------- ------------------- Other Liabilities -------------------- ------------------- Net Assets Available for Benefits $854,301 $558,023 ==================== ===================
F-11 DOMINION SUBSIDIARY SAVINGS PLAN Statement of Net Assets Available For Benefits by Fund December 31, 1997
- ------------------------------------------------------------------------------------------------------------------ Participant Directed (Cont'd) --------------------------------------------------------------------------------- Premier Templeton Warburg Pincus Managed Foreign Emerging Loan Assets Income Fund Fund Growth Fund Fund ---------------- ----------------- ------------------------ ----------------- Investments: Common Stock Common/Collective Trust $511 Mutual Funds $111,431 $253,259 $537,412 Loans Receivable 231,367 ---------------- ----------------- ------------------------ ----------------- Total Investments 111,431 253,259 537,412 231,878 Receibables: Interest Receivable 1,252 Contribution Receivable: Participant 1,230 4,807 8,153 Participating Companies ---------------- ----------------- ------------------------ ----------------- Total receivables 1,230 4,807 8,153 1,252 Other -83 3,003 ---------------- ----------------- ------------------------ ----------------- Total Assets 112,661 258,066 545,482 236,133 ---------------- ----------------- ------------------------ ----------------- Other Liabilities ---------------- ----------------- ------------------------ ----------------- Net assets available for benefits $112,661 $258,066 $545,482 $236,133 ================ ================= ======================== =================
- ---------------------------------------------------------- Non-Participant Directed -------------------------- DRI Common Assets Stock Fund -------------------------- Investments: Common Stock $690,034 Common/Collective Trust 8,158 Mutual Funds Loans Receivable -------------------------- Total Investments 698,192 Receibables: Interest Receivable 70 Contribution Receivable: Participant Participating Companies 14,299 -------------------------- Total receivables 14,369 Other 157 -------------------------- Total Assets 712,718 -------------------------- Other Liabilities -------------------------- Net assets available for benefits $712,718 ==========================
F-12 EMPLOYEE SAVINGS PLAN Statement of Net Assets Available For Benefits by Fund December 31, 1996 (As Restated)
- ------------------------------------------------------------------------------------------------------------------------ Participant Directed ---------------------------------------------------------------------- DRI Common Certus Stable Dreyfus Assets Total Stock Fund Value Fund Balance Fund - ------------------------------------------------------------------------------------------------------------------------ Investments: Common Stock $345,307 $172,704 Common/Collective Trust 686,176 5,984 $303,769 Mutual Funds 794,651 $264,502 Loans Receivable 4,001 ---------------- --------------------- -------------------- ------------------------ Total Investments 1,830,135 178,688 303,769 264,502 Receivables: Interest Receivable 4,503 1,647 370 Contribution receivable: Participant 30,679 2,377 4,672 4,587 Participating Companies 11,025 ---------------------------------------------------------------------------------------- Total receivables 46,207 4,024 5,042 4,587 Other 4,859 2,636 ---------------- --------------------- -------------------- ------------------------ Total Assets 1,881,201 182,712 308,811 271,725 ---------------- --------------------- -------------------- ------------------------ Liabilities Other Liabilities 13,606 8,058 ================ ===================== ==================== ======================== Net Assets Available for Benefit $1,867,595 $174,654 $308,811 $271,725 ================ ===================== ==================== ========================
- -------------------------------------------------------------------------- Participant Directed ------------------------------------------ Mellon EB Daily Liquidity Crabbe Huson Assets Index Fund Equity Fund - -------------------------------------------------------------------------- Investments: Common Stock Common/Collective Trust $309,981 Mutual Funds $170,022 Loans Receivable -------------------- ------------------- Total Investments 309,981 170,022 Receivables: Interest Receivable Contribution receivable: Participant 6,094 5,052 Participating Companies ------------------------------------------ Total receivables 6,094 5,052 Other 172 -------------------- ------------------- Total Assets 316,075 175,246 -------------------- ------------------- Liabilities Other Liabilities -224 ==================== =================== Net Assets Available for Benefit $316,299 $175,246 ==================== ===================
F-13 DOMINION SUBSIDIARY SAVINGS PLAN Statement of Net Assets Available For Benefits by Fund December 31, 1996 (As Restated)
- ----------------------------------------------------------------------------------------------------------------- Participant Directed (Cont'd) --------------------------------------------------------------------------------- Premier Templeton Warburg Pincus Managed Foreign Emerging Loan Assets Income Fund Fund Growth Fund Fund --------------- ---------------- ----------------- ----------------- Investments: Common Stock Common/Collective Trust $ 56,469 Mutual Funds $ 48,137 $96,963 $ 215,027 Loans Receivable 4,001 --------------- ---------------- ----------------- ----------------- Total Investments 48,137 96,963 215,027 60,470 Receivables: Interest Receivable 15 Contribution receivable: Participant 754 1,960 5,183 Participating Companies --------------- ---------------- ----------------- ----------------- Total receivables 754 1,960 5,183 15 Other 813 1,238 --------------- ---------------- ----------------- ----------------- Total Assets 48,891 99,736 221,448 60,485 --------------- ---------------- ----------------- ----------------- Liabilities Other Liabilities --------------- ---------------- ----------------- ----------------- Net Assets Available for Benefits $48,891 $99,736 $221,448 $60,485 =============== ================ ================= =================
- ------------------------------------------------------ Non-Participant Directed ---------------------- DRI Common Assets Stock Fund ----------------------- Investments: Common Stock $172,603 Common/Collective Trust 9,973 Mutual Funds Loans Receivable ---------------------- Total Investments 182,576 Receivables: Interest Receivable 2,471 Contribution receivable: Participant Participating Companies 11,025 ---------------------- Total receivables 13,496 Other ---------------------- Total Assets 196,072 ---------------------- Liabilities Other Liabilities 5,772 ---------------------- Net Assets Available for Benefits $190,300 ======================
F-14 DOMINION SUBSIDIARY SAVINGS PLAN Statement of Changes in Net Assets Available for Plan Benefits by Fund For Year Ended December 31, 1997
- --------------------------------------------------------------------------------------------------------------------------------- Participant Directed ------------------------------------------------------------------------------------- Certus Dreyfus Mellon EB Crabbe Templeton DRI Common Stable Balanced Daily Liquidity Huson Foreign Total Stock Fund Value Fund Fund Index Fund Equity Fund Income Fund ----- ------------ ---------- ------- --------------- ------------ ----------- Investment Income: Dividends $108,309 $29,906 $11,051 $13,791 $1,135 $6,835 Interest and Other 63,535 1,887 $42,949 3,162 723 506 338 Net appreciation in fair value of investments 577,340 73,781 70,280 161,656 81,875 -394 ------------------------------------------------------------------------------------------------ Total Investment Income 749,184 105,574 42,949 84,493 176,170 83,516 6,779 Contributions: Participants 1,080,983 126,108 128,123 141,932 205,664 179,138 101,852 Participating Companies 397,339 Interfund Transfers, Net 0 -48,160 19,209 -44,913 -49,947 -19,689 -4,595 ------------------------------------------------------------------------------------------------ Total Additions/(Subtractions) 2,227,506 183,522 190,281 181,512 331,887 242,965 104,036 ------------------------------------------------------------------------------------------------ Distributions to Participants 277,929 29,816 132,462 17,352 26,789 23,404 3,731 Administrative Expense 6,314 -13 1,691 1,042 1,428 765 369 ------------------------------------------------------------------------------------------------ Total deductions 284,243 29,803 134,153 18,394 28,217 24,169 4,100 ------------------------------------------------------------------------------------------------ Net increase/(decrease) before transfer 1,943,263 153,719 56,128 163,118 303,670 218,796 99,936 Transfer of Participants' Assets To the Plan from other Plans 1,591,698 529,158 268,562 199,297 234,332 163,981 58,394 ------------------------------------------------------------------------------------------------ Net Increase/(Decrease) 3,534,961 682,877 324,690 362,415 538,002 382,777 158,330 Net Assets Available for Benefits: Beginning of Year 1,867,595 174,654 308,811 271,725 316,299 175,246 99,736 ----------------------------------------------------------------------------------------------- End of Year $5,402,556 $857,531 $633,501 $634,140 $854,301 $558,023 $258,066 ================================================================================================
F-15 DOMINION SUBSIDIARY SAVINGS PLAN Statement of Changes in Net Assets Available for Plan Benefits by Fund For Year Ended December 31, 1997
- ----------------------------------------------------------------------------------------------------- Non-Participant Participant Directed (Cont'd) Directed ----------------------------- --------- Warburg Pincus Premier Emerging Managed Loan DRI Common Growth Fund Income Fund Fund Stock Fund ------------ ----------- ------ ---------- Investment Income: Dividends $5,296 $40,295 Interest and Other $695 482 $9,902 2,891 Net appreciation in fair value of investments 74,214 2,921 113,007 ------------------------------------------------------------- Total Investment Income 74,909 8,699 9,902 156,193 Contributions: Participants 167,454 30,712 Participating Companies 397,339 Interfund Transfers, Net -11,338 19,217 152,530 -12,314 ------------------------------------------------------------- Total Additions/(Subtractions) 231,025 58,628 162,432 541,218 ------------------------------------------------------------- Distributions to Participants 22,173 16,594 -13,216 18,824 Administrative Expense 874 182 -24 ------------------------------------------------------------- Total Deductions 23,047 16,776 -13,216 18,800 ------------------------------------------------------------- Net increase/(decrease) before transfer 207,978 41,852 175,648 522,418 Transfer of Participants' Assets To the Plan from other Plans 116,056 21,918 ------------------------------------------------------------- Net Increase/(Decrease) 324,034 63,770 175,648 522,418 Net Assets Available for benefits: Beginning of Year (as restated) 221,448 48,891 60,485 190,300 ------------------------------------------------------------- End of Year $545,482 $112,661 $236,133 $712,718 =============================================================
F-16 DOMINION RESOURCES, INC. EMPLOYEE SAVINGS PLAN Statement of Changes in Net Assets Available for Benefits by Fund For Year Ended December 31, 1996 (As Restated)
- -------------------------------------------------------------------------------------------------------------------------- Participant Directed ----------------------------------------------------------------------- Interest America's Equity DRI Common Bearing Utility Index Total Stock Fund Fund Fund Fund --------------- ------------------- ---------------- ---------------- ---------------- Investment Income: Dividends $ 15,570 $ 3,810 $ 186 Interest and Other 2,589 148 $ 24 $ 443 Net Appreciation(Depreciation) in fair value of investments 29,599 34 253 -185 --------------- ------------------- ---------------- ---------------- ---------------- Total Investment Income 47,758 3,992 277 186 258 Contributions: Participants 625,638 109,474 3,456 24,784 83,443 Participating Companies 191,750 - Interfund Transfers, Net -48 Transfer to New Trust Funds - -14,367 -34,979 -106,948 --------------- ------------------- ---------------- ---------------- ---------------- Total Additions/(Subtractions) 865,146 113,418 -10,634 -10,009 -23,247 ------------------------------------------------------------------------------------------ Distributions to Participants 118,266 22,179 115 Administrative Expense 2,781 176 --------------- ------------------- ---------------- ---------------- ---------------- Total Deductions 121,047 22,355 115 --------------- ------------------- ---------------- ---------------- ---------------- Net increase(decrease) before transfer 744,099 91,063 -10,634 -10,124 -23,247 Transfer of Participants' Assets To the Plan from other Plans 1,008,659 71,555 ------------------------------------------------------------------------------------------ Net Increase/(Decrease) 1,752,758 162,618 -10,634 -10,124 -23,247 Net Assets Available for Benefits: Beginning of Year 114,837 12,036 10,634 10,124 23,247 --------------- ------------------- ---------------- ---------------- ---------------- End of Year $1,867,595 $ 174,654 $ - $ - $ - =============== =================== ================ ================ ================
F-17 DOMINION SUBSIDIARY SAVINGS PLAN Statement of Changes in Net Assets Available for Benefits by Fund For Year Ended December 31, 1996 (As Restated)
- -------------------------------------------------------------------------------------------------------------------------------- Participant Directed (Cont'd) ---------------------------------------------------------------------------------------- Certus Mellon EB Balanced Stable Dreyfus Daily Liquidity Crabbe Huson Fund Value Fund Balance Fund Index Fund Equity Fund ---------------- ----------------- ---------------- ---------------- --------------- Investment Income: Dividends $ 555 $2,205 $ 2,179 $ 192 Interest and Other $ 1,614 3 Net Appreciation (Depreciation) in fair value of investments 11,138 11,800 3,062 ---------------- ----------------- ---------------- ---------------- -------------- Total Investment Income 555 1,614 13,343 13,982 3,254 Contributions: Participants 62,631 70,292 43,275 71,049 59,590 Participating Companies Interfund Transfers, Net -211 -1,486 -4,281 -507 Transfer to New Trust Funds -95,668 14,367 130,647 106,948 ---------------- ----------------- ---------------- ---------------- -------------- Total Additions/(Subtractions) -32,482 86,062 185,779 187,698 62,337 ---------------- ----------------- ---------------- ---------------- -------------- Distributions to Participants 153 7,462 22,021 32,989 Administrative Expense 436 606 544 242 ---------------- ----------------- ---------------- ---------------- -------------- Total Deductions 153 7,898 22,627 33,533 242 ---------------- ----------------- ---------------- ---------------- -------------- Net increase /(decrease) before -32,635 78,164 163,152 154,165 62,095 transfer Transfer of Participants' Assets To the Plan from other Plans 230,647 108,573 162,134 113,151 --------------------------------------------------------------------------------------- Net Increase/(Decrease) -32,635 308,811 271,725 316,299 175,246 Net Assets Available for Benefits: Beginning of Year 32,635 - - ---------------- ----------------- ---------------- ---------------- -------------- End of Year $ $308,811 $271,725 $316,299 $ 175,246 ================ ================= ================ ================ ==============
- -------------------------------------------------------------------- Participant Directed (Cont'd) ----------------------------- Templeton Foreign Income Fund ------------------- Investment Income: Dividends $ 502 Interest and Other Net Appreciation (Depreciation) in fair value of investments 1,241 --------------------- Total Investment Income 1,743 Contributions: Participants 26,972 Participating Companies Interfund Transfers, Net -63 Transfer to New Trust Funds --------------------- Total Additions/(Subtractions) 28,652 --------------------- Distributions to Participants Administrative Expense 118 --------------------- Total Deductions 118 --------------------- Net increase /(decrease) before 28,534 transfer Transfer of Participants' Assets To the Plan from other Plans 71,202 --------------------- Net Increase/(Decrease) 99,736 Net Assets Available for Benefits: Beginning of Year - --------------------- End of Year $ 99,736 =====================
F-18 DOMINION SUBSIDIARY SAVINGS PLAN Statement of Changes in Net Assets Available for Benefits by Fund For Year Ended December 31, 1996 (As Restated)
- ---------------------------------------------------------------------------------------------------------------- Non-Participant Participant Directed (Cont'd) Directed --------------------------------------------------- --------------------- Warburg Pincus Premier Emerging Managed Loan DRI Common Growth Fund Income Fund Fund Stock Fund ---------------- ------------------- ------------ ------------------- Investment Income: Dividends $ 221 $ 5,720 Interest and Other $ 133 224 Net Appreciation (Depreciation) in fair value of investments $2,087 117 52 ---------------- ------------------- ------------ ------------------ Total Investment Income 2,087 338 133 5,996 Contributions: Participants 58,793 11,879 Participating Companies 191,750 Interfund Transfers, Net -499 -42 7,208 -71 Transfer to New Trust Funds ---------------- ------------------- ------------ ------------------ Total Additions/(Subtractions) 60,381 12,175 7,341 197,675 ---------------- ------------------- ------------ ------------------ Distributions to Participants 74 33,273 Administrative Expense 318 78 263 ---------------- ------------------- ------------ ------------------ Total Deductions 392 78 33,536 ------------------------------------------------------------------------ Net increase /(decrease) before 59,989 12,097 7,341 164,139 transfer Transfer of Participants' Assets To the Plan from other Plans 161,459 36,794 53,144 ------------------------------------------------------------------------ Net Increase/(Decrease) 221,448 48,891 60,485 164,139 Net Assets Available for Benefits: Beginning of Year - - 26,161 ---------------- ------------------- ------------ ------------------ End of Year $ 221,448 $ 48,891 $60,485 $ 190,300 ================ =================== ============ ==================
F-19 DOMINION SUBSIDIARY SAVINGS PLAN Statement of Changes in Net Assets Available for Benefits by Fund For Period October 1, 1995 (Inception) to December 31, 1995
- ------------------------------------------------------------------------------------------------------------------------------------ Participant Directed ------------------------------------------------------------------------ Interest America's Equity DRI Common Bearing Utility Index Total Stock Fund Fund Fund Fund ------------------ ------------------- ---------------- ---------------- ---------------- Investment Income: Dividends $75 $ 75 Interest and Other 366 $ 27 Net appreciation in fair value of investments 363 $161 43 ------------------------------------------------------------------------------------------- Total Investment Income 804 161 27 118 Contributions: Participants 59,725 7,211 1,194 6,458 $22,418 Participating Companies 26,161 ------------------ ------------------- ---------------- ---------------- ---------------- Total additions 86,690 7,372 1,221 6,576 22,418 Total deductions ------------------------------------------------------------------------------------------- Net increase before transfer 86,690 7,372 1,221 6,576 22,418 Transfer of participants' assets to the Plan from other plans 28,147 4,664 9,413 3,548 829 Net Assets Available for Benefits: Beginning of Year ------------------ ------------------- ---------------- ---------------- ---------------- End of Year $114,837 $ 12,036 $10,634 $10,124 $23,247 ================== =================== ================ ================ ================
- ------------------------------------------------------------------------------ Participant Non-Participant Direct Directed ------------------ ------------------- Balanced DRI Common Fund Stock Fund ---------------- ------------------- Investment Income: Dividends Interest and Other $339 Net appreciation in fair value of investments 159 -------------------------------------- Total Investment Income 498 Contributions: Participants 22,444 Participating Companies $26,161 ---------------- ------------------- Total additions 22,942 26,161 Total deductions -------------------------------------- Net increase before transfer 22,942 26,161 Transfer of participants' assets to the Plan from other plans 9,693 Net Assets Available for Benefits: Beginning of Year ---------------- ------------------- End of Year $32,635 $ 26,161 ================ ===================
F-20 8. TAX STATUS The Plan is a qualified employees' profit sharing trust under Sections 401(a) and 401(k) of the Internal Revenue Code and, as such, is exempt from Federal income taxes under Section 501(a). Pursuant to Section 402 (a) of the Internal Revenue Code, a participant is not taxed on the income and contributions allocated to the participant's account until such time as the participant or the participant's beneficiaries receive distributions from the Plan. The Plan obtained its latest determination letter on May 21, 1996, in which the Internal Revenue Service stated that the Plan, as then designed, was in compliance with the applicable requirements of the Internal Revenue Code. Therefore, no provision for income taxes has been included in the Plan's financial statements. 9. VALUATION OF INVESTMENT CONTRACTS Effective January 1, 1996, the Plan adopted the provision of AICPA Statement of Position 94-4, "Reporting of Investment Contracts Held by Health and Welfare Benefit Plans and Defined-Contribution Pension Plans." The Plan's investment contracts are fully-benefit responsive and have been presented on the financial statements at contract value. The contract value is estimated at $655,057 and $80,418 at December 31, 1997 and December 31, 1996. The underlying investment contracts are carried at variable and fixed rates with expiration dates through 2007. The variable rates are reviewed and adjusted quarterly. The average yield on the contracts are estimated at 6.57% and 6.54% at December 31, 1997 and December 31, 1996. 10. RESTATEMENT OF PRIOR YEAR Subsequent to the issuance of the Company's 1996 financial statements, the Company's management determined that a transfer of assets to the plan was not reflected in the trustee statement, thus the amount was not reflected within the financial statements. However, the amount transferred was properly reflected within the participant accounts as of December 31, 1996. As a result, the amount of transfers and assets have been restated from the amounts previously reported to record the transfer of assets in the proper period. A summary of the effects of the restatement is as follows:
As Previously As Reported Restated -------- -------- Assets at December 31, 1996 Investments: DRI Common Stock $287,672 $345,307 Common/Collective Trusts 254,142 686,176 Mutual Funds 345,441 794,651 ------- ------- Total Assets Restated at December 31, 1996 $887,255 $1,826,134 ======= ========= Transfers of assets to the plan from other plans for the year ended December 31, 1996 $69,780 $1,008,659 ====== =========
F-21 DOMINION SUBSIDIARY SAVINGS PLAN SUPPLEMENTAL SCHEDULE AS OF DECEMBER 31, 1997 ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
Current Description Cost Value ------------------- --------------------- Dominion Resources, Inc., Common Stock $1,340,299 $ 1,531,994 ------------------- --------------------- Common/Collective Trusts TBC Inc Pooled Employee Funds Daily Liquidity Fund 19,364 19,364 Certus Stable Value Fund 625,665 625,665 Mellon S&P 500 Index Daily Fund 685,048 844,580 ------------------- --------------------- 1,330,077 1,489,609 ------------------- --------------------- Mutual Funds Crabbe Huson Equity Fund Inc. 586,402 549,158 Dreyfus Balanced Fund Inc. 633,119 627,790 Premier Managed Income Fund 108,868 111,431 Templeton Foreign Fund Inc. 271,112 253,259 Warburg Pincus Emerging Growth Fund 497,888 537,412 ------------------- --------------------- 2,097,389 2,079,050 ------------------- --------------------- Participant Loans bearing interest At 9.5% with maturities in 60 months 231,367 231,367 - - ------------------- --------------------- Total Assets Held for Investment $ 4,999,132 $ 5,332,020 =================== =====================
F-22 DOMINION SUBSIDIARY SAVINGS PLAN SUPPLEMENTAL SCHEDULE AS OF DECEMBER 31, 1997 ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS Schedules that report the 5% transactions which transpired in 1997 for this trust were filed in paper format as Exhibit 99 (iii). F-23 EX-99 5 EXHIBIT 99(IV) Exhibit 99(iv) INDEPENDENT AUDITORS' CONSENT We consent to the incorporation by reference in Registration Statement No. 33- 62705 of Dominion Resources, Inc. on Form S-8 of our report dated May 29, 1998, appearing in this Annual Report on Form 11-K of Dominion Resources, Inc. Dominion Subsidiary Savings Plan for the year ended December 31, 1997. DELOITTE & TOUCHE LLP Richmond, Virginia June 10, 1998 EX-99 6 EXHIBIT 99(V) 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 (Mark One): [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the fiscal year ended December 31, 1997 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from __________ to ___________ Commission File number 333-09167 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: Virginia Power Hourly Employee Savings Plan B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: DOMINION RESOURCES, INC. P. O. Box 26532 901 East Byrd Street - Suite 1700 Richmond, Virginia 23261-6111 VIRGINIA POWER HOURLY EMPLOYEE SAVINGS PLAN FINANCIAL STATEMENTS TABLE OF CONTENTS Pages ----- Independent Auditors' Report F-2 Financial Statements: Statements of Net Assets Available for Benefits as of December 31, 1997 and 1996 F-3 Statements of Changes in Net Assets Available for Benefits for the Years Ended December 31, 1997, 1996 and 1995 F-4 Notes to Financial Statements F-5 - F-21 Supplemental Schedules as of December 31, 1997: Item 27a - Schedule of Assets Held for Investment Purposes F-22 Item 27d - Schedule of Reportable Transactions F-23 Schedules Omitted: The following schedules are omitted because of the absence of the conditions under which they are required, or because the required information is included in the financial statements or notes thereto: Schedules I, II and III. F-1 INDEPENDENT AUDITORS' REPORT To the Organization and Compensation Committee of the Board of Directors of Virginia Electric and Power Company We have audited the accompanying financial statements of the Virginia Power Hourly Employee Savings Plan (the Plan) as of December 31, 1997 and 1996 and for each of the three years in the period ended December 31, 1997, listed in the Table of Contents on page F-1. 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, such financial statements 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 net assets available for plan benefits for each of the three years in the period ended December 31, 1997 in conformity with generally accepted accounting principles. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplemental schedules listed in the Table of Contents are presented for purposes of additional analysis and are not a required part of the basic financial statements, but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. These schedules are the responsibility of the Plan's management. Such schedules have been subjected to the auditing procedures applied in our audit of the basic 1997 financial statements and, in our opinion, are fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole. Richmond, Virginia May 29, 1998 F-2 VIRGINIA POWER HOURLY EMPLOYEE SAVINGS PLAN STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, ASSETS 1997 1996 - ------ --------------------- --------------------- Investments (Note 1 and 2): Dominion Resources, Inc., Common Stock $ 71,021,169 $ 65,756,889 Common/Collective Trusts 4,189,191 1,117,091 Interest in Certus Stable Value Fund 18,587,458 17,778,061 Mutual Funds 12,388,533 4,095,047 Loans To Participants at Face Value 3,301,157 2,171,916 --------------------- --------------------- Total Investments 109,487,508 90,919,004 Receivables: Interest 97,259 94,358 Other 313,962 129,499 --------------------- --------------------- Total Receivables 411,221 223,857 Cash 64 76 --------------------- --------------------- Total Assets 109,898,793 91,142,937 --------------------- --------------------- Liabilities - Other 376,182 2,055 --------------------- --------------------- Net Assets Available for Benefits $ 109,522,611 $ 91,140,882 ===================== =====================
The accompanying notes are an integral part of the financial statements. F-3 VIRGINIA POWER HOURLY EMPLOYEE SAVINGS PLAN STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
For the Years Ended December 31, ---------------------------------------------------------------------- 1997 1996 1995 --------------------- --------------------- --------------------- Investment income: Net appreciation/(depreciation) in fair value of investments (Note 5) $ 8,702,140 $ (2,576,111) $ 9,002,279 Dividend income 4,461,716 4,432,457 4,012,680 Interest and other income 1,370,147 868,746 285,800 --------------------- --------------------- --------------------- Total investment income 14,534,003 2,725,092 13,300,759 Contributions: Participant (Note 1) 7,954,739 7,393,173 6,814,194 Participating companies (Note 1) 3,138,250 3,223,090 3,144,158 --------------------- --------------------- --------------------- Total additions 25,626,992 13,341,355 23,259,111 --------------------- --------------------- --------------------- Benefits paid to participants 6,469,943 7,626,380 4,784,785 Administrative expenses 58,906 76,644 85,552 --------------------- --------------------- --------------------- Total deductions 6,528,849 7,703,024 4,870,337 --------------------- --------------------- --------------------- Net increase before transfers 19,098,143 5,638,331 18,388,774 Transfer of participants' assets from the Plan to other plans (716,414) (2,088,502) (325,430) --------------------- --------------------- --------------------- Net increase 18,381,729 3,549,829 18,063,344 Net assets available for benefits: Beginning of year 91,140,882 87,591,053 69,527,709 --------------------- --------------------- --------------------- End of year $ 109,522,611 $ 91,140,882 $ 87,591,053 ===================== ===================== =====================
The accompanying notes are an integral part of the financial statements. F-4 NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 1997 AND 1996 1. DESCRIPTION OF PLAN The following description of the Virginia Power Hourly Employee Savings Plan (the Plan) provides only general information. Participants should refer to the Plan document for a more complete description of the Plan's provisions. a. GENERAL - The Plan is a defined contribution pension plan covering all full-time hourly employees of the Virginia Electric and Power Company (the Company) who have one year of service and are age 18 or older. The Company, a wholly-owned subsidiary of Dominion Resources, Inc. (DRI), is the designated Plan sponsor, fiduciary and administrator. Mellon Bank serves as the trustee of the Plan. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). b. CONTRIBUTIONS - Prior to June 1, 1996: Under the terms of the Plan, participants could make contributions to the Plan under the Regular Option and the Savings Plus Option. The Regular Option allowed participants to make after-tax contributions to the Plan. The Savings Plus Option allowed participants to contribute to the Plan with before-tax dollars. A maximum of 16% of the participant's eligible earnings could be invested in the Plan. Of this 16%, up to 10% could be invested on a tax-deferred basis under the Savings Plus Option. The Participating Companies (noted in Note 1d) contributed a matching amount equivalent to 50% of each participant's contributions, not to exceed 3% of the participant's eligible earnings, which is used to purchase DRI common stock. Effective June 1, 1996: A maximum of 17% of the participant's eligible earnings and 9% of highly compensated employee's eligible earnings can be invested in the Plan. Of the 17%, up to 12% can be invested on a tax-deferred basis. The Participating Companies contribute a matching amount equivalent to 50% of each participant's contributions, not to exceed 3% of the participant's eligible earnings, which was used to purchase DRI common stock. c. PARTICIPANT ACCOUNTS - Each participant's account is credited with the participant's contributions and withdrawals, as applicable, and allocations of (a) the Company's contributions and (b) Plan earnings, and debited with an allocation of administrative expenses. Allocations are based on participant earnings or account balances, as defined. Forfeited balances of terminated participants' non-vested accounts are used to reduce future Participating Companies' contributions. The benefit to which a participant is entitled is the benefit that can be provided from the participant's account. d. PLAN PARTICIPANTS - Any subsidiary of DRI may adopt the Plan for the benefit of its qualified hourly employees subject to approval of the Board of Directors of the Company. Currently only Company employees are participating in the Plan. There were 3,054 and 3,134 participants in the Plan as of December 31, 1997 and 1996, respectively. F-5 e. VESTING - Prior to June 1, 1996: Participants became vested in their own contributions immediately and in the Participating Companies' matching contributions at the earlier of (a) the beginning of the third year following the year in which the contribution was made or (b) the date the participant completed five years of service with the Company. Matching contributions vested immediately for participants aged 55 or older. Effective June 1, 1996: Participants become vested in their own contributions and the earnings on these amounts immediately, and in the participating companies' matching contributions and earnings after 3 years of service. Matching contributions vest immediately for participants aged 55 or older. f. INVESTMENT OPTIONS - Prior to June 1, 1996: The Plan provided for employee contributions to be invested in the following funds: Dominion Resources, Inc. (DRI) Common Stock Fund - All investments are in DRI Common Stock or cash equivalent investments for partial shares. Interest-Bearing Fund - This fund's focus was on preservation of principal and the primary investments were in high quality fixed income securities. Loan Fund - Participants were allowed to borrow against their vested balance and repay the amount over a three-or four-year period. Participating Companies' matching contributions were invested only in the DRI Common Stock Fund and could not be transferred to other funds. Participants could have elected to have 50% of their contributions invested in each of the funds (expect the Loan Fund) or to have 100% invested in either fund. Effective June 1, 1996: The Plan provides for employee contributions to be invested in the following: (1) Common Stock: Dominion Resources, Inc. (DRI) Common Stock Fund - All investments are in DRI Common Stock or cash equivalent investments for partial shares. (2) Interest in Certus Stable Value Fund: Certus Stable Value Fund - The fund invests in investment contracts of insurance companies and commercial banks and U.S. Government or agency backed bonds. F-6 (3) Mutual Funds: Premier Managed Income Fund - The fund invests primarily in investment-grade corporate and U.S. Government obligation and in obligation having maturities of 10 years or less. Dreyfus Balanced Fund, Inc. - The fund invests in equity and debt securities of domestic and foreign issuers. The Crabbe Huson Equity Fund, Inc. - The fund invests in common stock that have large market capitalization. Templeton Foreign Fund - The fund invests primarily in equity and debt securities of companies and governments outside the U.S. Warburg Pincus Emerging Growth Fund - The fund invests in equity securities of primarily domestic emerging growth companies. (4) Common/Collective Trust: Equity Index Fund - The fund invests primarily in the 500 stocks of the S&P 500 and may also invest in exchange traded options and financial futures. Upon enrollment in the Plan, a participant may direct employee contributions in any option (except the loan fund) in 1% increments totaling to 100%. Changes in investment options may be made at any time and become effective with the subsequent pay period. Participants can make unlimited transfers among existing funds. Company matching contributions are automatically contributed into the DRI Common Stock fund. However, participants who are under age 50 may transfer 50% of the value of their Company Match Account into another investment option, while participants who are age 50 and over may transfer 100% of the value of the Company Match Account. f. LOANS TO PARTICIPANTS - Participants are eligible to secure loans against their plan assets and repay the amount over a one-to five-year period. The maximum loan amount is the lesser of: o 50% of the vested account balance o $50,000 (reduced by the maximum outstanding loan balance during the prior 12 months) The loans are interest-bearing at one percentage point above the prime rate of interest. The rate is determined every quarter; however, the rate is fixed at the inception of the loan for the life of the loan. Participants make repayments to the Plan on a monthly basis. Any defaults in loans result in a reclassification of the remaining loan balances as taxable distributions to the participants. g. PAYMENT OF BENEFITS - Distributions from the Plan are recorded on the valuation date when a participant's valid withdrawal request is processed by the record keeper. On termination of service, a participant may elect to receive either a lump-sum amount equal to the value of the participant's vested interest in his or her account, or defer the payment to a future time no later than the year in which the participant attains age 70 1/2. There were no amounts payable to participants at December 31, 1997 and 1996. F-7 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. VALUATION OF INVESTMENTS: (1) Stock Fund - The investments of the Stock Fund are stated at fair value based on closing sales prices reported on recognized securities exchanges on the last business day of the year. (2) Mutual Funds - Investments in mutual funds are valued at quoted market prices which represent the net asset values of shares held by the Plan at year-end. (3) Common/Collective Trusts - Investments in common/collective trust funds (funds) are stated at estimated fair values, which have been determined based on the unit values of the funds. Unit values are determined by the bank sponsoring such funds by dividing the fund's net assets by its units outstanding at the valuation dates. (4) Investment Contracts - The guaranteed investment contracts within the Certus Stable Value Fund are valued at contract value. Contract value represents contributions made under the contract, plus earnings, less Plan withdrawals and administrative expenses. b. INVESTMENT INCOME - Dividend income is recognized on the ex-dividend date. c. EXPENSES - The Plan's expenses are accrued as incurred and paid by the Plan, as provided by the Plan document. d. 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 reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 3 CHANGE IN TRUSTEE Effective June 1, 1996, Mellon Trust, Mellon Bank, N.A. became the Trustee of the Plan. The prior Trustee was Signet Trust Company with respect to the DRI Common Stock Fund. NationsBank served as Trustee of the Plan with respect to the Interest Bearing Fund. 4. INVESTMENTS EXCEEDING 5% OF NET ASSETS The following table represents the fair value of investments exceeding 5% of the Plan's net assets at each year end: Investment at Fair Value as Determined 1997 1996 ----------- ---------- by Quoted Market Price: DRI Common Stock $ 71,021,169 $ 65,756,889 F-8 5. NET APPRECIATION (DEPRECIATION) IN FAIR VALUE OF INVESTMENTS The Plan's investments (including investments bought, sold, as well as held during the year) appreciated (depreciated) in value by $8,702,140 in 1997, ($2,576,111) in 1996 and $9,002,279 in 1995, as follows:
a. Realized Gain/(Loss) 1997 1996 1995 ----------------- ------------------ ------------------ Investment at fair value as determined by quoted market price: Common Stock $ 836,050 $ 275,244 $ 676,426 U.S. Treasury Notes - - 41,814 - - - Interest in Certus Stable Value Fund 22 - - Mutual Funds 1,076,392 115,613 - ----------------- ------------------ ------------------ 1,912,464 390,857 718,240 Investments at estimated fair value: Common/Collective Trust Funds 380,093 389,274 - ----------------- ------------------ ------------------ $ 2,292,557 $ 780,131 $ 718,240 ================= ================== ================== b. Unrealized Gain/(Loss) 1997 1996 1995 ----------------- ------------------ ------------------ Investment at fair value as determined by quoted market price: Common Stock $ 6,026,861 $ (3,435,255) $ 7,858,329 U.S. Treasury Bill - - 21,285 Interest in Certus Stable Value Fund - - - Mutual Funds (468,411) 26,165 - ----------------- ------------------ ------------------ 5,558,450 (3,409,090) 7,879,614 Investments at estimated fair value: Common/Collective Trust Funds 851,132 52,848 404,425 ----------------- ------------------ ------------------ $ 6,409,582 $ (3,356,242) $ 8,284,039 ================= ================== ================== c. Net Appreciation/(Depreciation) in Fair Value of Investment 1997 1996 1995 ----------------- ------------------ ------------------ Investment at fair value as determined by quoted market price: Common Stock $ 6,862,912 $ (3,160,011) $ 8,534,755 U.S. Treasury Bill - - 21,285 U.S. Treasury Notes - - 41,814 Interest in Certus Stable Value Fund 22 - - Mutual Funds 607,981 141,778 - ----------------- ------------------ ------------------ 7,470,915 (3,018,233) 8,597,854 Investments at estimated fair value: Common/Collective Trust Funds 1,231,225 442,122 404,425 ----------------- ------------------ ------------------ $ 8,702,140 $ (2,576,111) $ 9,002,279 ================= ================== ==================
F-9 6. PLAN TERMINATION Although it has not expressed any intention 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 set forth in ERISA. In the event of any termination of the Plan, or upon complete or partial discontinuance of contributions, the accounts of each affected participant shall become fully vested. 7. BY FUND INFORMATION The net assets available for benefits on a by fund basis and the changes in net assets available for benefits on a by fund basis are as follows: F-10 Virginia Power Hourly Employee Saving Plan Statement of Net Assets Available for Benefits by Fund December 31, 1997
Participant Directed ---------------------------------------------------------------------- Mellon EB DRI Common Certus Stable Dreyfus Daily Liquidity Crabbe Huson Assets Total Stock Fund Value Fund Balance Fund Index Fund Equity Fund - ------ ------------- ------------ ------------ ------------ --------------- ------------- Investments (Notes 1 and 2): Common stock $ 71,021,169 $31,903,015 Common/collective trust 4,189,191 $ 4,132,879 Interest in Certus Stable Value Fund 18,587,458 $18,587,458 Mutual funds 12,388,533 $2,106,357 $ 3,542,278 Loans 3,301,157 ------------- ------------ ------------ ----------- ------------ ------------ Total investments 109,487,508 31,903,015 18,587,458 2,106,357 4,132,879 3,542,278 Receivables: Interest 97,259 483 95,918 Other 313,962 140,027 ------------- ------------ ------------ ----------- ------------ ------------ Total receivables 411,221 140,510 95,918 - - - Cash 64 50 ------------- ------------ ------------ ----------- ------------ ------------ Total assets 109,898,793 32,043,525 18,683,376 2,106,357 4,132,929 3,542,278 ------------- ------------ ------------ ----------- ------------ ------------ Liabilities - other 376,182 100,273 30,059 49 37,012 ------------- ------------ ------------ ----------- ------------ ------------ Net assets available for benefits $109,522,611 $31,943,252 $18,683,376 $2,076,298 $ 4,132,880 $ 3,505,266 ============= ============ ============ =========== ============ ============
F-11 Virginia Power Hourly Employee Saving Plan Statement of Net Assets Available for Benefits by Fund December 31, 1997
Non-Participant Participant Directed (Cont'd) Directed ------------------------------------------------------- ------------ Premier Templeton Warburg Pincus Managed Foreign Emerging Loan DRI Common Assets Income Fund Fund Growth Fund Fund Stock Fund ------------ ---------- -------------- ------------ ------------ Investments (Notes 1 and 2): Common stock $39,118,154 Common/collective trust $ 56,312 Interest in Certus Stable Value Fund Mutual funds $ 347,852 $1,537,699 $ 4,854,347 Loans 3,301,157 ------------ ---------- -------------- ------------ ------------ Total investments 347,852 1,537,699 4,854,347 3,357,469 39,118,154 Receivables: Interest 256 602 Other 173,935 ------------ ---------- -------------- ------------ ------------ Total receivables - - - 256 174,537 Cash 14 ------------ ---------- -------------- ------------ ------------ Total assets 347,852 1,537,699 4,854,347 3,357,739 39,292,691 ------------ ---------- -------------- ------------ ------------ Liabilities - Other 3,671 19,565 59,732 125,821 ------------ ---------- -------------- ------------ ------------ Net assets available for benefits $ 344,181 $1,518,134 $ 4,794,615 $3,357,739 $39,166,870 ============ ========== ============== ============ ============
F-12 Virginia Power Hourly Employee Savings Plan Statement of Net Assets Available for Benefits by Fund December 31, 1996
Participant Directed -------------------------------------------------------------------- Mellon EB DRI Common Certus Stable Dreyfus Daily Liquidity Crabbe Huson Assets Total Stock Fund Value Fund Balance Fund Index Fund Equity Fund - ------ ------------ ------------ ------------- ------------ --------------- ------------ Investments (Notes 1 and 2): Common stock $ 65,756,889 $ 31,826,430 Common/collective trust 1,117,091 145 $ 1,045,583 Interest in Certus Stable Value Fund 17,778,061 $17,778,061 Mutual funds 4,095,047 $ 504,921 $ 1,221,285 Loans 2,171,916 ------------ ------------ ----------- ---------- ---------- ----------- Total investments 90,919,004 31,826,575 17,778,061 504,921 1,045,583 1,221,285 Receivables: Interest 94,358 878 91,792 Other 129,499 62,279 660 ------------ ------------ ----------- ---------- ---------- ----------- Total receivables 223,857 63,157 91,792 - - 660 Cash 76 ------------ ------------ ----------- ---------- ---------- ----------- Total assets 91,142,937 31,889,732 17,869,853 504,921 1,045,583 1,221,945 ------------ ------------ ----------- ---------- ---------- ----------- Liabilities - other 2,055 24 278 ------------ ------------ ----------- ---------- ---------- ----------- Net assets available for benefits $ 91,140,882 $ 31,889,708 $17,869,853 $ 504,643 $1,045,583 $ 1,221,945 ============ ============ =========== ========== ========== ===========
F-13 Virginia Power Hourly Employee Savings Plan Statement of Net Assets Available for Benefits by Fund December 31, 1996
Non-Participant Participant Directed (Cont'd) Directed ---------------------------------------------------- ------------- Premier Templeton Warburg Pincus Managed Foreign Emerging Loan DRI Common Assets Income Fund Fund Growth Fund Fund Stock Fund ----------- ---------- -------------- ---------- ------------ Investments (Notes 1 and 2): Common stock $ 33,930,459 Common/collective trust $ 71,210 153 Interest in Certus Stable Value Fund Mutual funds $ 81,508 $ 487,025 $ 1,800,308 Loans 2,171,916 ----------- ---------- -------------- --------- ------------ Total investments 81,508 487,025 1,800,308 2,243,126 33,930,612 Receivables: Interest 312 1,376 Other 403 66,157 ----------- ---------- -------------- --------- ------------ Total receivables - 403 - 312 67,533 Cash 76 ----------- ---------- -------------- --------- ------------ Total assets 81,508 487,428 1,800,308 2,243,514 33,998,145 ----------- ---------- -------------- --------- ------------ Liabilities - Other 105 1,622 26 ----------- ---------- -------------- --------- ------------ Net assets available for benefits $ 81,403 $ 87,428 $ 1,798,686 $2,243,514 $ 33,998,119 =========== ========== =============== ========= ============
F-14 Virginia Power Hourly Employee Savings Plan Statement of Changes in Net Assets Available for Benefits by Fund For Year Ended December 31, 1997
Participant Directed -------------------------------------------------------------------------- Certus Mellon EB DRI Common Stable Dreyfus Daily Liquidity Crabbe Huson Total Stock Fund Value Fund Balance Fund Index Fund Equity Fund ------------- -------------- ------------- ------------- -------------- ------------ Investment income: Net appreciation/(depreciation) in fair value of investments (Note 5) $ 8,702,140 $ 3,067,722 $ 22 $ 136,853 $ 638,620 $ 479,795 Dividend income 4,461,716 1,995,965 31,149 60,066 7,149 Interest and other income 1,370,147 3,981 1,117,126 6,059 ------------- -------------- ------------- ------------- ------------- -------------- Total investment income 14,534,003 5,067,668 1,117,148 174,061 698,686 486,944 -------------- --------------- -------------- -------------- ------------- -------------- Contributions: Participant (Note 1) 7,954,739 1,521,458 2,487,916 599,771 874,926 760,358 Participating companies (Note 1) 3,138,250 ------------- -------------- ------------- ------------- ------------- -------------- Total additions 25,626,992 6,589,126 3,605,064 773,832 1,573,612 1,247,302 ------------- -------------- ------------- ------------- ------------- -------------- Benefits paid to participants 6,469,943 2,195,899 1,852,353 80,010 165,054 158,551 Administrative expenses 58,906 23,396 16,744 1,397 2,847 1,895 -------------- --------------- -------------- -------------- -------------- ------------- Total deductions 6,528,849 2,219,295 1,869,097 81,407 167,901 160,446 ------------- -------------- ------------- ------------- ------------- -------------- Net increase/(decrease) before transfers 19,098,143 4,369,831 1,735,967 692,425 1,405,711 1,086,856 Interfund transfers, net - (4,122,295) (820,835) 869,814 1,734,428 1,221,175 Transfer of participants' assets from the Plan to other plans (716,414) (193,992) (101,609) 9,416 (52,842) (24,710) ------------- -------------- ------------- ------------- ------------- -------------- Net increase 18,381,729 53,544 813,523 1,571,655 3,087,297 2,283,321 Net assets available for benefits: Beginning of year 91,140,882 31,889,708 17,869,853 504,643 1,045,583 1,221,945 ------------- -------------- ------------- ------------- ------------- -------------- End of year $109,522,611 $ 31,943,252 $ 18,683,376 $ 2,076,298 $ 4,132,880 $ 3,505,266 ============= ============== ============= ============= ============= ==============
F-15 Virginia Power Hourly Employee Savings Plan Statement of Changes in Net Assets Available for Benefits by Fund For Year Ended December 31, 1997
Non-Participant Participant Directed (Cont'd) Directed ----------------------------------------------------------- ------------- Templeton Warburg Pincus Premier Foreign Emerging Managed Loan DRI Common Income Fund Growth Fund Income Fund Fund Stock Fund ------------- --------------- ------------ ----------- ------------- Investment income: Net appreciation/(depreciation) in fair value of investments (Note 5) $ (13,821) 592,605 $ 5,153 $ $ 3,795,191 Dividend income 41,522 10,891 2,314,974 Interest and other income 759 231,718 10,504 ------------- ------------ ------------ ------------ ------------- Total investment income 27,701 592,605 16,803 231,718 6,120,669 ------------- ------------ ------------- ------------- -------------- Contributions: Participant (Note 1) 421,360 1,188,716 100,234 Participating companies (Note 1) 3,138,250 ------------- ------------ ------------ ------------ ------------- Total additions 449,061 1,781,321 117,037 231,718 9,258,919 ------------- ------------ ------------ ------------ ------------- Benefits paid to participants 52,540 156,758 18,798 126,250 1,663,730 Administrative expenses 1,006 2,830 190 (28,302) 36,903 ------------- ------------ ------------- ------------- -------------- Total deductions 53,546 159,588 18,988 97,948 1,700,633 ------------- ------------ ------------ ------------ ------------- Net increase/(decrease) before transfers 395,515 1,621,733 98,049 133,770 7,558,286 Interfund transfers, net 650,821 1,447,781 165,503 1,037,433 (2,183,825) Transfer of participants' assets from the Plan to other plans (15,630) (73,585) (774) (56,978) (205,710) ------------- ------------ ------------ ------------ ------------- Net increase 1,030,706 2,995,929 262,778 1,114,225 5,168,751 Net assets available for benefits: Beginning of year 487,428 1,798,686 81,403 2,243,514 33,998,119 ------------- ------------ ------------ ------------ ------------- End of year $ 1,518,134 $ 4,794,615 $ 344,181 $ 3,357,739 $ 39,166,870 ============= ============ ============ ============ ==============
F-16 Virginia Power Hourly Employee Savings Plan Statement of Changes in Net Assets Available for Benefits by Fund For Year Ended December 31, 1996
Participant Directed ------------------------------------------------------------------------ Interest Certus Mellon EB DRI Common Bearing Stable Dreyfus Daily Liquidity Total Stock Fund Fund Value Fund Balance Fund Index Fund ----------- ------------- ----------- ------------ ------------ -------------- Investment income: Net appreciation/(depreciation) in fair value of investments (Note 5 $(2,576,111) $ (322,499) $ 385,695 $ - $ 27,908 $ 56,427 Dividend income 4,432,457 2,146,471 4,890 7,035 Interest and other income 868,746 7,888 206,703 605,827 23 107 -------------- ------------- -------------- -------------- ------------ ----------- Total investment income 2,725,092 1,831,860 592,398 605,827 32,821 63,569 ------------- ------------- ------------- -------------- ----------- ----------- Contributions: Participant (Note 1) 7,393,173 2,596,342 1,118,896 1,594,793 304,229 419,871 Participating companies (Note 1) 3,223,090 ------------- ------------- ------------- -------------- ----------- ----------- Total additions 13,341,355 4,428,202 1,711,294 2,200,620 337,050 483,440 -------------- ------------- -------------- --------------- ------------ ------------ Benefits paid to participants 7,626,380 2,909,682 1,175,122 763,662 6,388 17,987 Administrative expenses 76,644 35,206 23,553 33,095 1,059 1,485 ------------- ------------- ------------- -------------- ----------- ----------- Total deductions 7,703,024 2,944,888 1,198,675 796,757 7,447 19,472 -------------- ------------- -------------- --------------- ------------ ------------ Net increase/(decrease) before transfer 5,638,331 1,483,314 512,619 1,403,863 329,603 463,968 Interfund transfers, net - (1,924,682) 123,612 (1,404,654) 169,982 571,104 Transfer of participants' assets from the Plan to other plans (2,088,502) (1,081,567) (42,940) (346,879) 5,058 10,511 Transfer to new trust funds - (18,217,523) 18,217,523 ------------- ------------- ------------- -------------- ----------- ----------- Net increase 3,549,829 (1,522,935) (17,624,232) 17,869,853 504,643 1,045,583 Net assets available for benefits: Beginning of year 87,591,053 33,412,643 17,624,232 - - - ------------- ------------- ------------- -------------- ----------- ----------- End of year $ 91,140,882 $ 31,889,708 $ - $ 17,869,853 $ 504,643 $1,045,583 ============= ============= ============= ============== =========== ===========
F-17 Virginia Power Hourly Employee Savings Plan Statement of Changes in Net Assets Available for Benefits by Fund For Year Ended December 31, 1996
Non- Participant Participant Directed (Cont'd) Directed -------------------------------------------------------------- ----------- Templeton Warburg Pincus Premier Crabbe Huson Foreign Emerging Managed Loan DRI Common Equity Fund Income Fund Growth Fund Income Fund Fund Stock Fund ------------ ----------- -------------- ----------- --------- ------------ Investment income: Net appreciation/(depreciation) in fair value of investments (Note 5) $ 48,824 $ 20,306 $ 43,906 $ 834 $ - $ (2,837,512) Dividend income 4,024 9,236 1,445 2,259,356 Interest and other income 40,133 8,065 ------------ ------------- ------------ --------- -------------- -------------- Total investment income 52,848 29,542 43,906 2,279 40,133 (570,091) ----------- ------------ ----------- -------- ------------- ------------- Contributions: Participant (Note 1) 410,399 198,711 689,935 59,997 Participating companies (Note 1) 3,223,090 ----------- ------------ ----------- -------- ------------- ------------- Total additions 463,247 228,253 733,841 62,276 40,133 2,652,999 ----------- ------------ ----------- -------- ------------- ------------- Benefits paid to participants 13,206 6,439 18,216 2,466 216,506 2,496,706 Administrative expenses 1,426 669 2,480 209 (67,110) 44,572 ----------- ------------ ----------- -------- ------------- ------------- Total deductions 14,632 7,108 20,696 2,675 149,396 2,541,278 ----------- ------------ ----------- -------- ------------- ------------- Net increase/(decrease) before transfer 448,615 221,145 713,145 59,601 (109,263) 111,721 Interfund transfers, net 782,016 275,524 1,111,055 22,145 1,185,433 (911,535) Transfer of participants' assets from the Plan to other plans (8,686) (9,241) (25,514) (343) (9,478) (579,423) Transfer to new trust funds ----------- ------------ ----------- -------- ------------- ------------- Net increase 1,221,945 487,428 1,798,686 81,403 1,066,692 (1,379,237) Net assets available for benefits: Beginning of year - - - - 1,176,822 35,377,356 ----------- ------------ ----------- -------- ------------- ------------- End of year $1,221,945 $ 487,428 $1,798,686 $81,403 $2,243,514 $33,998,119 =========== ============ =========== ======== ============= =============
F-18 Virginia Power Hourly Employee Savings Plan Statement of Changes in Net Assets Available for Benefits by Fund For Year Ended December 31, 1995
Non-Participant Participant Directed Directed -------------------------------------------- --------------- Interest DRI Common Bearing Loan DRI Common Total Stock Fund Fund Fund Stock Fund ------------- ---------------- -------------- ------------- ---------------- Investment income: Net appreciation/(depreciation) in fair value of investments (Note 5) $ 9,002,279 $ 2,814,393 $ 467,524 $ - $ 5,720,362 Dividend income 4,012,680 1,987,079 2,025,601 Interest and other income 285,800 11,370 194,558 71,773 8,099 -------------- --------------- --------------- -------------- -------------- Total investment income 13,300,759 4,812,842 662,082 71,773 7,754,062 --------------- --------------- --------------- -------------- --------------- Contributions: Participant (Note 1) 6,814,194 4,178,032 2,636,162 Participating companies (Note 1) 3,144,158 3,144,158 -------------- --------------- --------------- -------------- -------------- Total additions 23,259,111 8,990,874 3,298,244 71,773 10,898,220 -------------- --------------- --------------- -------------- -------------- Benefits paid to participants 4,784,785 1,666,976 1,334,716 19,371 1,763,722 Administrative expenses 85,552 23,276 35,609 2,940 23,727 -------------- --------------- --------------- -------------- -------------- Total deductions 4,870,337 1,690,252 1,370,325 22,311 1,787,449 -------------- --------------- --------------- -------------- -------------- Net increase/(decrease) before transfers 18,388,774 7,300,622 1,927,919 49,462 9,110,771 Interfund transfers, net - 137,937 (50,227) (230,583) 142,873 Transfer of participants' assets from the Plan to other plans (325,430) (146,033) (24,765) (154,632) -------------- --------------- --------------- -------------- -------------- Net increase 18,063,344 7,292,526 1,852,927 (181,121) 9,099,012 Net assets available for benefits: Beginning of year 69,527,709 26,120,117 15,771,305 1,357,943 26,278,344 -------------- --------------- --------------- -------------- -------------- End of year $ 87,591,053 $ 33,412,643 $ 17,624,232 $ 1,176,822 $ 35,377,356 ============== =============== =============== ============== ==============
F-19 8. INTEREST IN THE CERTUS STABLE VALUE FUND The Plan's investments are in a Master Trust which was established for the investment of assets for the Plan and several other Company sponsored plans (the Dominion Resources, Inc. Employee Savings Plan and the Dominion Subsidiary Savings Plan). The assets of the Master Trust are held by Mellon Bank. As of December 31, 1997 and 1996, the assets of the Master Trust were separately maintained by each Company sponsored plan, with the exception of the Certus Stable Value Fund (Certus Fund). As of December 31, 1997 and 1996, the Plan's interest in the net assets of the Certus Fund was approximately 29% and 31%, respectively. Investment income and administrative expenses relating to the Certus Fund are allocated to the individual plans based upon average monthly balances invested by each Plan. The following table presents the fair value of the undivided investments in the Certus Fund:
December 31, Investments at fair value: 1997 1996 ------------------------------------ Guaranteed Investment Contracts $ 58,085,100 $ 52,832,197 Common/collective trust 7,012,518 5,098,631 ----------------- ----------------- Total $ 65,097,618 $ 57,930,828 ================= ================= Investment income for the Certus Stable Value December 31, Fund is as follows: 1997 1996 ------------------------------------ Net appreciation in fair value of investments $ 426,972 $ 792,346 Interest 3,883,054 1,928,461 ----------------- ----------------- Total $ 4,310,026 $ 2,720,807 ================= =================
9. VALUATION OF INVESTMENT CONTRACTS Effective June 1, 1996, the Plan adopted the provisions of AICPA Statement of Position 94-4, "Reporting of Investment Contracts Held by Health and Welfare Benefit Plans and Defined-Contribution Pension Plans". The Plan's investment contracts are fully-benefit responsive and have been presented on the financial statements at contract value. The Plan's portion of the contracts have an estimated value of $18,685,163 and $17,864,264 at December 31, 1997 and 1996, respectively. The underlying investment contracts are carried at variable and fixed rates with expiration dates through 2007. The variable rates are reviewed and adjusted quarterly. The average yield on the contracts are estimated at 6.57% and 6.54% at December 31, 1997 and December 31, 1996. 10. TAX STATUS The Plan is a qualified employees' profit sharing trust under Sections 401(a) and 401(k) of the Internal Revenue Code and, as such, is exempt from Federal income taxes under Section 501(a). Pursuant to Section 402(a) of the Internal Revenue Code, a participant is not taxed on the income and pre-tax contributions allocated to the participant's account until such time as the participant or the participant's beneficiaries receive distributions from the Plan. The Plan obtained its latest determination letter on November 9, 1993, in which the Internal Revenue Service stated that the Plan, as then designed, was in compliance with the applicable requirements of the Internal Revenue Code. The Plan has been amended since receiving the determination letter. However, the Company believes that the Plan is currently designed and operating in compliance with the applicable requirements of the Internal Revenue Code. F-20 11. SUBSEQUENT EVENT During the first quarter of 1998, the Board of Directors of the Company approved an amendment to the Plan that adopts a KSOP provision (combines the features of a 401K and an Employee Stock Ownership Plan) effective May 1, 1998. The KSOP allows participants the choice of (1) receiving cash dividends paid on vested shares held in their DRI Common Stock Fund or (2) continuing to reinvest the dividends in the fund. In addition, effective May 1, 1998, the new maximum contribution rates for hourly employees are 15 percent for pre-tax; 20 percent for after-tax, and 2 to 20 percent for combined contributions. F-21 VIRGINIA POWER HOURLY EMPLOYEE SAVINGS PLAN SUPPLEMENTAL SCHEDULE AS OF DECEMBER 31, 1997 ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
Current Description Cost Value - ------------------------------------------- ---------------- -------------- Dominion Resources, Inc., Common Stock: $ 64,994,308 $ 71,021,169 --------------- --------------- Interest in Certus Stable Value Fund: Certus Stable Value Fund 18,587,458 18,587,458 --------------- --------------- Common/Collective Trusts: Loan Fund 56,312 56,312 Mellon S&P 500 Index Daily Fund 3,578,279 4,132,879 --------------- --------------- 3,634,591 4,189,191 --------------- --------------- Mutual Funds: Crabbe Huson Equity Fund Inc. 3,789,690 3,542,278 Dreyfus Balanced Fund Inc. 2,204,077 2,106,357 Premier Managed Income Fund 343,380 347,852 Templeton Foreign Fund Inc. 1,665,450 1,537,699 Warburg Pincus Emerging Growth Fund 4,557,815 4,854,347 --------------- --------------- 12,560,412 12,388,533 --------------- --------------- Loans to Participants: 3,301,157 3,301,157 --------------- --------------- Total Assets Held for Investment $103,077,926 $109,487,508 =============== ===============
F-22 VIRGINIA POWER HOURLY EMPLOYEE SAVINGS PLAN SUPPLEMENTAL SCHEDULE AS OF DECEMBER 31, 1997 ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS The assets of the Virginia Power Hourly Employee Savings Plan were combined with the assets of the Dominion Resources, Inc. Employee Savings Plan and the Dominion Subsidiary Savings Plan in a master trust for investment purposes until June 1, 1996. Effective June 1, 1996, a new master trust was established which does not combine the assets of the Virginia Power Hourly Employee Savings Plan with the assets of the Dominion Resources, Inc. Employee Savings Plan and the Dominion Subsidiary Savings Plan, except for the Certus Stable Value Fund master trust. Such schedules that report the 5% transactions, which transpired in 1997 for the master trusts, were filed in paper format as Exhibit 99(v). F-23 EX-99 7 EXHIBIT 99(VI) Exhibit 99(vi) INDEPENDENT AUDITORS' CONSENT We consent to the incorporation by reference in Registration Statement No. 333-09167 of Dominion Resources, Inc. on Form S-8 of our report dated May 29, 1998, appearing in this Annual Report on Form 11-K of Virginia Power Hourly Employee Savings Plan for the year ended December 31, 1997. DELOITTE & TOUCHE LLP Richmond, Virginia June 10, 1998 -----END PRIVACY-ENHANCED MESSAGE-----