-----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, SMqpRRH32QDDKA5+t+eWB1ACX092aS+hB+qm+SO3YXpYeIbAycycMbUwv6LXA1l1 tEtaLqe0ZF2jHByGlx7Wbg== 0000950147-99-000684.txt : 19990630 0000950147-99-000684.hdr.sgml : 19990630 ACCESSION NUMBER: 0000950147-99-000684 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990629 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PHELPS DODGE CORP CENTRAL INDEX KEY: 0000078066 STANDARD INDUSTRIAL CLASSIFICATION: PRIMARY SMELTING & REFINING OF NONFERROUS METALS [3330] IRS NUMBER: 131808503 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 001-00082 FILM NUMBER: 99654503 BUSINESS ADDRESS: STREET 1: 2600 NORTH CENTRAL AVE CITY: PHOENIX STATE: AZ ZIP: 85004 BUSINESS PHONE: 6022348100 MAIL ADDRESS: STREET 1: 2600 NORTH CENTRAL AVENUE CITY: PHOENIX STATE: AZ ZIP: 85004-3089 11-K 1 FORM 11-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 11-K (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 1998 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ________________ Commission file number 1-82 PHELPS DODGE EMPLOYEE SAVINGS PLAN PHELPS DODGE CORPORATION 2600 NORTH CENTRAL AVENUE PHOENIX, ARIZONA 85004-3089 SIGNATURES THE PLAN. Pursuant to the requirements of the Securities Exchange Act of 1934, the Committee has duly caused this Annual Report to be signed by the undersigned hereunto duly authorized. PHELPS DODGE EMPLOYEE SAVINGS PLAN Date: 6/25/99 By: /s/ David L. Pulatie ----------------- --------------------------------- David L. Pulatie, Chairman Benefits Administration Committee - 2 - PHELPS DODGE EMPLOYEE SAVINGS PLAN FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION DECEMBER 31, 1998 AND 1997 PHELPS DODGE EMPLOYEE SAVINGS PLAN INDEX - -------------------------------------------------------------------------------- DECEMBER 31, 1998 AND 1997
PAGE Report of Independent Accountants 1 Statement of Net Assets Available for Benefits, with Fund Information 2 Statement of Changes in Net Assets Available for Benefits, with Fund Information 4 Notes to Financial Statements 6 Supplemental Information:* I. Schedule of Assets Held for Investment Purposes at December 31, 1998 14 II. Schedule of Loans or Fixed Income Obligations 19 III. Schedule of Reportable Transactions for Year Ended December 31, 1998 20
* Other schedules required by Section 2520.103-10 of the Department of Labor Rules and Regulations for Reporting and Disclosure under ERISA have been omitted because they are not applicable REPORT OF INDEPENDENT ACCOUNTANTS To the Benefits Administration Committee and Participants of the Phelps Dodge Employee Savings Plan In our opinion, the financial statements listed in the accompanying index present fairly, in all material respects, the net assets available for benefits of the Phelps Dodge Employee Savings Plan at December 31, 1998 and 1997, and the changes in net assets available for benefits for the years then ended, in conformity with generally accepted accounting principles. These financial statements are the responsibility of the Benefits Administration Committee (the Committee); our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by the Committee, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information included in Schedules I, II and III is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is additional information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The fund information in the statement of net assets available for benefits and the statement of changes in net assets available for benefits is presented for purposes of additional analysis rather than to present the net assets available for plan benefits and changes in net assets available for benefits of each fund. Schedules I, II and III and the fund information have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. PricewaterhouseCoopers LLP Phoenix, Arizona June 23, 1999 PHELPS DODGE EMPLOYEE SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION DECEMBER 31, 1998 (IN THOUSANDS) - --------------------------------------------------------------------------------
Income Euro- Conservative Interest and Equity Enhanced U.S. Small Pacific Investment Income Growth Growth Index Company Growth Portfolio Assets Fund Fund Fund Fund Fund Fund Fund - ---------------------------------- ------- ------- ------- ------- ------ ------ ------- Investments, at current value (cost basis $307,146): Common Stocks Registered Investment Companies $56,079 $75,215 $9,178 $5,562 $ 2,471 Common/Collective Funds $48,165 $26,195 6,468 Guaranteed Investment Contracts 5,705 Cash and Short-Term Investments Loans to Participants ------- ------- ------- ------- ------ ------ ------- 53,870 56,079 75,215 26,195 9,178 5,562 8,939 ------- ------- ------- ------- ------ ------ ------- Receivables: Loan Repayments 13 15 22 7 3 2 2 Employee Contributions 33 58 75 38 14 9 10 Employer Contributions 1,133 1,491 1,904 1,007 399 226 234 ------- ------- ------- ------- ------ ------ ------- 1,179 1,564 2,001 1,052 416 237 246 ------- ------- ------- ------- ------ ------ ------- Net assets available for benefits $55,049 $57,643 $77,216 $27,247 $9,594 $5,799 $ 9,185 ======= ======= ======= ======= ====== ====== ======= Phelps Schwab Occidental Moderate Aggressive Dodge Personal Petroleum Investment Investment Common Choice Common Portfolio Portfolio Stock Retirement Stock Loan Assets Fund Fund Fund Fund Fund Fund Total - ---------------------------------- ------- ------- ------- ------- -------- -------- -------- Investments, at current value (cost basis $307,146): Common Stocks $33,263 $ 1,677 $ 142 $ 35,082 Registered Investment Companies $ 8,613 $11,111 11,421 179,650 Common/Collective Funds 12,892 10,506 104,226 Guaranteed Investment Contracts 5,705 Cash and Short-Term Investments 710 710 Loans to Participants $ 17,547 17,547 ------- ------- ------- ------- -------- -------- -------- 21,505 21,617 33,263 13,808 142 17,547 342,920 ------- ------- ------- ------- -------- -------- -------- Receivables: Loan Repayments 9 14 10 (97) Employee Contributions 35 56 36 364 Employer Contributions 971 1,224 913 9,502 ------- ------- ------- ------- -------- -------- -------- 1,015 1,294 959 (97) 9,866 ------- ------- ------- ------- -------- -------- -------- Net assets available for benefits $22,520 $22,911 $34,222 $13,808 $ 142 $ 17,450 $352,786 ======= ======= ======= ======= ======== ======== ========
The accompanying notes are an integral part of these financial statements. - 2 - PHELPS DODGE EMPLOYEE SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION DECEMBER 31, 1997 (IN THOUSANDS) - --------------------------------------------------------------------------------
Money Interest Equity Growth Market Income Balanced Income S&P 500 Stock Assets Fund Fund Fund Fund Fund Fund - --------------------------------- ------- ------- ------- ------- ------- ------- Investments, at current value (cost basis $292,241): Common Stocks Registered Investment Companies $34,698 $ 4,013 $69,032 $12,770 $85,400 Guaranteed Investment Contracts $44,576 Loans to Participants ------- ------- ------- ------- ------- ------- 34,698 44,576 4,013 69,032 12,770 85,400 ------- ------- ------- ------- ------- ------- Receivables: Loan Repayments 78 105 6 125 21 159 Employee Contributions 129 165 18 231 66 338 Employer Contributions 1,553 1,304 185 1,950 600 2,568 ------- ------- ------- ------- ------- ------- 1,760 1,574 209 2,306 687 3,065 ------- ------- ------- ------- ------- ------- Net assets available for benefits $36,458 $46,150 $ 4,222 $71,338 $13,457 $88,465 ======= ======= ======= ======= ======= ======= Phelps Occidental Inter- Dodge Petroleum national SmallCap Common Common Equity Equity Stock Stock Loan Assets Fund Fund Fund Fund Fund Total - --------------------------------- ------ ------- -------- -------- -------- -------- Investments, at current value (cost basis $292,241): Common Stocks $ 42,835 $ 269 $ 43,104 Registered Investment Companies $5,024 $ 6,789 217,726 Guaranteed Investment Contracts 44,576 Loans to Participants $ 15,551 15,551 ------ ------- -------- ----- -------- -------- 5,024 6,789 42,835 269 15,551 320,957 ------ ------- -------- ----- -------- -------- Receivables: Loan Repayments 6 8 100 (608) Employee Contributions 29 42 221 1,239 Employer Contributions 283 391 1,547 10,381 ------ ------- -------- ----- -------- -------- 318 441 1,868 (608) 11,620 ------ ------- -------- ----- -------- -------- Net assets available for benefits $5,342 $ 7,230 $ 44,703 $ 269 $ 14,943 $332,577 ====== ======= ======== ===== ======== ========
The accompanying notes are an integral part of these financial statements. - 3 - PHELPS DODGE EMPLOYEE SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION DECEMBER 31, 1998 (IN THOUSANDS) - --------------------------------------------------------------------------------
Money Equity S&P 500 Growth SmallCap Interest Market Balanced Income Index Stock Equity Income Assets Fund Fund Fund Fund Fund Fund Fund - -------------------------------------- -------- -------- -------- -------- -------- ------- -------- Additions to net assets attributed to: Investment income: Net appreciation (depreciation) $ (108) $ (6,344) $ (225) $ (3,152) $(1,598) Dividends $ 1,250 80 1,336 2,329 33 $ 1,002 Interest 10 68 28 85 11 1,802 -------- -------- -------- -------- -------- ------- -------- 1,250 (18) (4,940) (197) (738) (1,554) 2,804 -------- -------- -------- -------- -------- ------- -------- Transfer of Nesor assets 224 118 237 238 533 146 215 -------- -------- -------- -------- -------- ------- -------- Contributions: Employee 877 190 1,715 866 2,482 378 1,857 Employer 79 46 408 151 548 84 1,808 -------- -------- -------- -------- -------- ------- -------- 956 236 2,123 1,017 3,030 462 3,665 -------- -------- -------- -------- -------- ------- -------- Total additions 2,430 336 (2,580) 1,058 2,825 (946) 6,684 -------- -------- -------- -------- -------- ------- -------- Deductions from net assets attributed to: Distributions to participants and beneficiaries (5,844) (613) (3,474) (616) (4,675) (234) (6,958) Loans to participants, net of repayments (95) (15) (296) (38) (722) (31) (406) Transfer of Accuride assets (1,028) (164) (4,683) (455) (7,533) (324) (2,764) Fund exchanges, net (31,921) (3,766) (60,305) (13,406) (78,360) (5,695) 12,343 -------- -------- -------- -------- -------- ------- -------- Total deductions (38,888) (4,558) (68,758) (14,515) (91,290) (6,284) 2,215 -------- -------- -------- -------- -------- ------- -------- Increase(decrease) in net assets during the year (36,458) (4,222) (71,338) (13,457) (88,465) (7,230) 8,899 Net assets available for benefits: Beginning of year 36,458 4,222 71,338 13,457 88,465 7,230 46,150 -------- -------- -------- -------- -------- ------- -------- End of year -- -- -- -- -- -- $ 55,049 ======== ======== ======== ======== ======== ======= ======== Phelps Occidental Dodge Petroleum Income EuroPacific Common Common and Equity Enhanced U.S. Small Growth Stock Stock Growth Growth Index Company Assets Fund Fund Fund Fund Fund Fund Fund - -------------------------------------- -------- -------- -------- -------- -------- ------- -------- Additions to net assets attributed to: Investment income: Net appreciation (depreciation) $ 479 $ (7,271) $ (129) $ 9,186 $ 14,172 $ 5,326 $ 568 Dividends 301 1,283 9 2,358 1,546 1,017 Interest 9 31 2 3 6 1 ------- -------- -------- --------- -------- -------- ------- 789 (5,957) (120) 11,546 15,721 5,332 1,586 ------- -------- -------- --------- -------- -------- ------- Transfer of Nesor assets 138 287 ------- -------- -------- --------- -------- -------- ------- Contributions: Employee 417 2,455 1,257 1,691 879 341 Employer 339 1,630 1,855 2,395 1,238 510 ------- -------- -------- --------- -------- -------- ------- 756 4,085 3,112 4,086 2,117 851 ------- -------- -------- --------- -------- -------- ------- Total additions 1,683 (1,585) (120) 14,658 19,807 7,449 2,437 ------- -------- -------- --------- -------- -------- ------- Deductions from net assets attributed to: Distributions to participants and beneficiaries (333) (3,507) (1) (1,190) (974) (263) (217) Loans to participants, net of repayments (19) 65 (268) (364) (132) (16) Transfer of Accuride assets (276) (3,399) Fund exchanges, net (598) (2,055) (6) 44,443 58,747 20,193 7,390 ------- -------- -------- --------- -------- -------- ------- Total deductions (1,226) (8,896) (7) 42,985 57,409 19,798 7,157 ------- -------- -------- --------- -------- -------- ------- Increase(decrease) in net assets during the year 457 (10,481) (127) 57,643 77,216 27,247 9,594 Net assets available for benefits: Beginning of year 5,342 44,703 269 ------- -------- -------- --------- -------- -------- ------- End of year $ 5,799 $ 34,222 $ 142 $ 57,643 $ 77,216 $ 27,247 $ 9,594 ======= ======== ======== ========= ======== ======== ======= Moderate Schwab Conservative Investment Aggressive Personal Investment Portfolio Investment Choice Portfolio Equity Portfolio Retirement Loan Assets Fund Fund Fund Fund Fund Total - -------------------------------------- -------- -------- -------- -------- -------- ------- Additions to net assets attributed to: Investment income: Net appreciation (depreciation) $ 607 $ 2,244 $ 2,792 $ 2,955 $ 19,502 Dividends 179 504 540 310 14,077 Interest 3 $ 1,552 3,611 ------- -------- -------- ------- -------- --------- 789 2,748 3,332 3,265 1,552 37,190 ------- -------- -------- ------- -------- --------- Transfer of Nesor assets 22 2,158 ------- -------- -------- ------- -------- --------- Contributions: Employee 236 873 1,292 17,806 Employer 298 1,205 1,563 14,157 ------- -------- -------- ------- -------- --------- 534 2,078 2,855 31,963 ------- -------- -------- ------- -------- --------- Total additions 1,323 4,826 6,187 3,265 1,574 71,311 ------- -------- -------- ------- -------- --------- Deductions from net assets attributed to: Distributions to participants and beneficiaries (25) (75) (109) (888) (29,996) Loans to participants, net of repayments (4) 12 28 2,301 Transfer of Accuride assets (480) (21,106) Fund exchanges, net 7,891 17,757 16,805 10,543 ------- -------- -------- ------- -------- --------- Total deductions 7,862 17,694 16,724 10,543 933 (51,102) ------- -------- -------- ------- -------- --------- Increase(decrease) in net assets during the year 9,185 22,520 22,911 13,808 2,507 20,209 Net assets available for benefits: Beginning of year 14,943 332,577 ------- -------- -------- ------- -------- --------- End of year $ 9,185 $ 22,520 $ 22,911 $13,808 $ 17,450 $ 352,786 ======= ======== ======== ======= ======== =========
-4- PHELPS DODGE EMPLOYEE SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION DECEMBER 31, 1997 (IN THOUSANDS) - --------------------------------------------------------------------------------
Money Interest Equity Market Income Balanced Income S&P 500 Growth Assets Fund Fund Fund Fund Index Fund Stock Fund - --------------------------------- --------- --------- --------- --------- ---------- ---------- Additions to net assets attributed to Investment income: Net appreciation (depreciation) 97 12,155 2,063 12,525 Dividends $ 1,872 437 3,813 5,558 Interest $ 3,218 8 93 23 121 --------- --------- --------- --------- --------- --------- 1,872 3,218 542 16,061 2,086 18,204 --------- --------- --------- --------- --------- --------- Contributions: Employee 1,759 2,320 235 3,168 775 4,738 Employer 2,144 2,046 242 2,844 782 3,880 --------- --------- --------- --------- --------- --------- 3,903 4,366 477 6,012 1,557 8,618 --------- --------- --------- --------- --------- --------- Total additions 5,775 7,584 1,019 22,073 3,643 26,822 --------- --------- --------- --------- --------- --------- Deductions from net assets attributed to: Distributions to participants and beneficiaries (7,162) (5,193) (127) (3,119) (493) (4,370) Other charges, net 1 (9) Loans to participants, net of repayments 4 245 1 (175) (8) (188) Fund exchanges, net 6,459 (7,995) 1,608 (539) 6,339 (5,218) --------- --------- --------- --------- --------- --------- Total deductions (698) (12,952) 1,482 (3,833) 5,838 (9,776) --------- --------- --------- --------- --------- --------- Increase(decrease) in net assets during the year 5,077 (5,368) 2,501 18,240 9,481 17,046 Net assets available for benefits: Beginning of year 31,381 51,518 1,721 53,098 3,976 71,419 --------- --------- --------- --------- --------- --------- End of year $ 36,458 $ 46,150 $ 4,222 $ 71,338 $ 13,457 $ 88,465 ========= ========= ========= ========= ========= ========= Phelps Occidental Small Cap Dodge Petroleum International Equity Common Common Assets Equity Fund Fund Stock Fund Stock Fund Loan Fund Total - --------------------------------- ----------- --------- ---------- ---------- --------- --------- Additions to net assets attributed to Investment income: Net appreciation (depreciation) $ (119) $ (249) $ (3,410) $ 56 $ 23,118 Dividends 391 1,132 1,311 10 14,524 Interest 12 15 43 $ 1,434 4,967 --------- --------- --------- --------- --------- --------- 284 898 (2,056) 66 1,434 42,609 --------- --------- --------- --------- --------- --------- Contributions: Employee 429 631 2,917 16,972 Employer 389 543 2,387 15,257 --------- --------- --------- --------- --------- --------- 818 1,174 5,304 32,229 --------- --------- --------- --------- --------- --------- Total additions 1,102 2,072 3,248 66 1,434 74,838 --------- --------- --------- --------- --------- --------- Deductions from net assets attributed to: Distributions to participants and beneficiaries (124) (188) (4,225) (6) (1,204) (26,211) Other charges, net (2) (10) Loans to participants, net of repayments 39 16 (2) 68 Fund exchanges, net 1,136 683 (2,454) (19) --------- --------- --------- --------- --------- --------- Total deductions 1,051 511 (6,681) (25) (1,138) (26,221) --------- --------- --------- --------- --------- --------- Increase(decrease) in net assets during the year 2,153 2,583 (3,433) 41 296 48,617 Net assets available for benefits: Beginning of year 3,189 4,647 48,136 228 14,647 283,960 --------- --------- --------- --------- --------- --------- End of year $ 5,342 $ 7,230 $ 44,703 $ 269 $ 14,943 $ 332,577 ========= ========= ========= ========= ========= =========
The accompanying notes are an integral part of these financial statements. -5- PHELPS DODGE EMPLOYEE SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 AND 1997 - -------------------------------------------------------------------------------- 1. DESCRIPTION OF PLAN GENERAL The Phelps Dodge Corporation Savings and Deferred Profit Sharing Plan (the Plan), a defined contribution plan, was established by Phelps Dodge Corporation (the Corporation) effective January 1, 1953, for the benefit of eligible salaried employees (the Participants). Hourly employees became eligible for the savings feature of the Plan on April 1, 1989. Subsequently, the Plan name was changed to Phelps Dodge Employee Savings Plan. Effective January 1, 1998, assets relating to Accuride employees were transferred out of the Plan into the Accuride Employee Savings Plan as a result of the Corporation's sale of Accuride Corporation. Assets from the Nesor Alloy Corporation Non-Union Employees' Profit Sharing Plan were merged into the Plan during February 1998. The Plan is subject to certain provisions of the Employee Retirement Income Security Act of 1974 (ERISA). A brief description of the Plan is included in the following paragraphs. Participants should refer to the Plan document for a complete description of Plan provisions. ADMINISTRATION The Plan is sponsored by the Corporation and administered by the Benefits Administration Committee (the Committee) composed of six employees of the Corporation who are appointed by the Corporation's Board of Directors. Effective September 1, 1998, plan assets are held by a trust (the Trust) administered by UMB, n.a. (the Trustee or UMB) and J.P. Morgan/American Century Retirement Plan Services (the Recordkeeper) was appointed as the Recordkeeper of the Trust. Prior to September 1, 1998, plan assets were held by a trust administered by Marshall and Ilsley Trust Company of Arizona (the Former Trustee). Fees and expenses of the Trust, other than brokerage commissions and taxes paid in connection with security transactions, and other expenses relating to the administration of the Plan were paid by the Corporation. INVESTMENT OPTIONS Participant investments are self-directed. The Trust is comprised of the following investments at December 31, 1998: Interest Income Fund - common/collective fund investing in high quality government and corporate bonds, stable value and guaranteed investment contracts and money market instruments. - 6 - PHELPS DODGE EMPLOYEE SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 AND 1997 - -------------------------------------------------------------------------------- 1. DESCRIPTION OF THE PLAN (CONTINUED) Income and Growth Fund - mutual fund investing in stocks of large-sized companies whose stock is expected to have a higher expected dividend yield and higher overall return potential than the S&P 500 Index. Equity Growth Fund - mutual fund investing in common stocks that fund management believes will have higher overall return potential than the S&P 500 Index. Enhanced Index Fund - mutual fund investing in approximately 350 large U.S. companies whose stock is expected to provide a higher total return potential than the S&P 500 Index. U.S. Small Company Fund - mutual fund investing in stocks of small-sized companies and seeks to outperform the Russell 2000 Index. EuroPacific Growth Fund (previously named the International Equity Fund) - mutual fund investing in stocks of non-U.S. companies which appear to offer above average growth potential and whose objective is to provide long-term growth of capital. Conservative Investment Portfolio Fund - asset allocation portfolio composed of 60 percent of the Interest Income Fund and a 40 percent mix of the plan's mutual funds to provide a conservative investment return. Moderate Investment Portfolio Fund - asset allocation portfolio composed of a 60 percent mix of the plan's mutual funds and 40 percent of the Interest Income Fund to provide a moderate investment return. Aggressive Investment Portfolio Fund - asset allocation portfolio composed of an 80 percent mix of the plan's mutual funds and 20 percent of the Interest Income Fund to provide an aggressive investment return. Phelps Dodge Common Stock Fund - invests only in common stock of the Corporation. Schwab Personal Choice Retirement Fund - enables participants to transfer funds from the above accounts to a wide range of investments, which includes mutual funds, over the counter stocks, short-term cash instruments and other investment options offered by Schwab. In addition, certain participants hold assets in the Occidental Petroleum Common Stock Fund as a result of the transfer of assets from the Columbian Chemicals Company plan. Participant loans are held in a separate Loan Fund. - 7 - PHELPS DODGE EMPLOYEE SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 AND 1997 - -------------------------------------------------------------------------------- 1. DESCRIPTION OF PLAN (CONTINUED) The Trust was comprised of the following investments until August 31, 1998: Money Market Fund - mutual fund investing in high quality, short-term cash instruments including certificates of deposit and U.S. Treasury bills issued by banks, corporations and the U.S. government or its agencies. Interest Income Fund - fund investing in high quality government, corporate and mortgage backed debt and other fixed income securities. Equity Income Fund - mutual fund investing in income-producing stocks with expected higher returns than the overall market; a portion may be invested in bonds or other fixed income securities, especially those convertible to stocks. Growth Stock Fund - mutual fund investing in stocks of mid-sized companies whose stock is expected to grow faster than the overall market. Phelps Dodge Common Stock Fund - invests only in common stock of the Corporation. Balanced Fund - mutual fund investing in a mix of stocks, U.S. Treasury bonds and money market cash instruments; the allocation of assets may shift substantially from time-to-time. S&P 500 Index Fund - mutual fund investing in stocks, primarily of the same companies as in the S&P 500 Index. International Equity Fund - mutual fund investing in stocks of European and Pacific Basin companies and government securities of developed and developing countries. Small Cap Equity Fund - mutual fund investing in a combination of small and mid-sized value and growth stocks. In addition, certain participants hold assets in the Occidental Petroleum Common Stock Fund as a result of the transfer of assets from the Columbian Chemicals Company plan. Participant loans are held in a separate Loan Fund. CONTRIBUTIONS A profit sharing contribution made for certain salaried and Phelps Dodge Mercantile hourly employee participants by the Corporation (the Company Profit Sharing Contribution) is limited to the lesser of: 8 percent of consolidated net income of the Corporation; 7 1/2 percent of the aggregate eligible base pay of Participants; or the percentage of the total eligible pay that would have been allocated to employees who were Participants in the Plan and eligible for profit sharing on December 31, 1996, determined under the terms of the Plan on that date. The Company Profit Sharing Contribution can be made only to the extent that it does not reduce consolidated net income below $0.50 per common share for such year after provision for payment of preferred and preference share dividends. Profit sharing contributions, which are included in Employer - 8 - PHELPS DODGE EMPLOYEE SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 AND 1997 - -------------------------------------------------------------------------------- 1. DESCRIPTION OF PLAN (CONTINUED) Contributions in the Statement of Changes in Net Assets Available for Benefits, with Fund Information, totaled $9,184,000 for 1998 and $9,867,000 for 1997. Participants were allowed to make voluntary contributions from 1 percent to 10 percent of their base pay on an after-tax basis (After-tax Contributions) to the Plan by payroll deduction from July 1, 1986 to March 31, 1989. Effective April 1, 1989, these voluntary After-tax Contributions were eliminated and Participants became eligible to make pretax contributions (Pretax Contributions), subject to certain limitations, equal to 1 percent to 10 percent of their base pay and 1 percent to 15 percent of their base pay effective September 1, 1998. Pretax Contributions are eligible for a matching contribution from the Corporation (Company Matching Contribution) equal to 50 percent of the first 5 percent of the base pay deferred. Effective September 1, 1998, Participants are eligible to make contributions to the Plan after three months of service; however, these contributions are not eligible for Company Matching Contribution until after one year of service. All contributions are invested in one or more of the investment funds available within the Plan as elected by participants. Participants are fully vested in their total account balance. DISTRIBUTIONS Participants' interests in the Trust become distributable upon severance of their service with the Corporation or to their beneficiaries in the event of their death or upon attaining age 59 1/2. The distribution may be a single lump sum or a series of substantially equal annual, quarterly or monthly cash installments beginning no earlier than age 55 and continuing over a period not to exceed 10 years, at the election of the Participant or beneficiary. Prior to August 31, 1998, distributions were generally made in cash, although distributions from the Phelps Dodge Common Stock Fund, Occidental Petroleum Stock Fund, Equity Income Fund and Growth Stock Fund were also made in shares. Cash distributions were based upon the market price of the funds within two days prior to the time of distribution. Effective September 1, 1998, cash distributions are based upon the underlying closing price of the funds, except for Phelps Dodge Common Stock or Occidental Petroleum Stock which are based upon the actual price at which the stock is liquidated in the market three days prior to the time of distribution. Distributions of the Phelps Dodge Common Stock Fund and Occidental Petroleum Stock Fund may be made in shares. Participants may withdraw their After-tax Contributions and earnings thereon at any time. The Plan also provides, with certain limitations, for hardship withdrawals of employee Pretax, Company Matching and Company Profit Sharing Contributions; however, earnings on any of these contributions are ineligible for hardship withdrawal. Hardship withdrawals are not granted unless other financial resources are not reasonably available, including after-tax savings or a loan from the Plan. All withdrawals and distributions are made in accordance with procedures outlined in the Plan document. - 9 - PHELPS DODGE EMPLOYEE SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 AND 1997 - -------------------------------------------------------------------------------- 1. DESCRIPTION OF PLAN (CONTINUED) LOANS Participants may borrow amounts as provided in the Plan. Loans are repayable over a maximum of 5 years with the exception of loans for the purchase of a primary residence which may extend to 15 years. The minimum loan is $1,000 and the maximum loan is an amount equal to $50,000 minus the Participant's highest outstanding loan balance during the past 12 months, limited to 50 percent of the Participant's vested account balance. All loans bear the Former Trustee's prime interest rate plus 2 percent at the end of the month preceding the month in which the loan is applied for. Effective September 1, 1998, loans bear the prime interest rate as quoted in the Wall Street Journal plus 2 percent as of the first of each month. The prime rate at December 31, 1998 was 7.75 percent. Loans are repaid by payroll deduction and interest is credited to Participant accounts. Loans are secured by the Participant's previous contributions to the Plan. PLAN TERMINATION The Plan may be amended or terminated at any time by the Corporation. No such action may cause any portion of the Trust to revert to the Corporation or to be used or diverted for any purpose other than for the exclusive benefit of Participants or their beneficiaries. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Plan are prepared on the accrual basis of accounting. Plan investments, other than Guaranteed Investment Contracts (GIC's), are presented at fair value. The fair values of common stock, registered investment companies and common/collective fund shares are based upon the closing market price on the valuation date. The GIC's are recorded at contract value, which approximates fair value. Contract value is based upon the GIC's respective face values plus accrued interest on the valuation date. Participant loans are valued at amounts advanced to participants less principal payments received. 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. -10- PHELPS DODGE EMPLOYEE SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 AND 1997 - -------------------------------------------------------------------------------- 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Security transactions are recorded on a trade date basis. Expenses paid by the Plan in connection with such transactions include brokerage commissions and taxes which are included in the cost of securities purchased and deducted from the proceeds of securities sold. The net appreciation (depreciation) in the fair value of the Plan's investments consists of the realized gains (losses) and the unrealized appreciation (depreciation) on those investments. Dividend income is recognized on the ex-dividend date. Interest income is recognized as earned. Employer and employee contributions are recognized on the accrual basis. Benefit obligations for persons who have withdrawn from participation in the Plan are not recorded as liabilities in the accompanying financial statements. There were no benefit obligations outstanding at December 31, 1998 and $3,550,000 outstanding at December 31, 1997. For comparative purposes, certain prior year amounts have been reclassified to conform with the current year presentation. 3. INVESTMENTS The following table presents the current value of investments with separate identification of individual investments which represent 5 percent or more of net assets:
DECEMBER 31, 1998 1997 ---------- ---------- (in thousands) J.P. Morgan Interest Income Fund $ 53,870* American Century Income & Growth Fund 56,079* American Century Equity Growth Fund 75,215* J.P. Morgan Enhanced Index Fund 26,195* Moderate Investment Portfolio Fund 21,505* Aggressive Investment Portfolio Fund 21,617* Barclays Money Market Fund I $ 34,698* Commonwealth Synthetic GIC, 6.04% open maturity rate resets calendar quarter 33,908* Fidelity Equity Income Fund 69,032* Fidelity Magellan Fund 85,400* Phelps Dodge Corporation Common Stock 33,263* 42,074* Loans to participants, 8%-12.5%, maturing through December 2013 17,547* 15,551* Other 37,629 40,294 ---------- ---------- $ 342,920 $ 320,957 ========== ==========
* Represents 5 percent or more of net assets at the end of the respective Plan year. -11- PHELPS DODGE EMPLOYEE SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 AND 1997 - -------------------------------------------------------------------------------- 4. UNITIZED FUNDS Prior to the transfer of funds to UMB in September 1998, several investment funds were unitized to allow the Former Trustee to participate in late day trading. Unitization requires the establishment and maintenance of a cash reserve to settle the sale of the units with cash from the reserve rather than having to wait at least one business day for the settlement of the underlying mutual fund as would normally be the case without unitization. The value of the fund determined using the number of units and net asset value per unit may not agree to the statement of net assets available for benefits, with fund information, due to pending trades and in-kind distributions. There are no unitized funds at December 31, 1998. The following represents the number of units and the net asset value per unit for all unitized funds at December 31, 1997:
NUMBER OF UNITS NET ASSET VALUE PER UNIT --------------- ------------------------ Interest Income Fund 3,982,513 $ 11.187 Balanced Fund 303,009 13.097 S&P 500 Index Fund 847,004 15.097 International Equity Fund 418,361 12.005 Small Cap Equity Fund 514,633 13.143 Phelps Dodge Common Stock Fund 654,674 65.365
-12- PHELPS DODGE EMPLOYEE SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 AND 1997 - -------------------------------------------------------------------------------- 5. RELATED PARTY TRANSACTIONS The Trustee invests in the Corporation's common stock in accordance with the provisions of the Plan. The following is a summary of transactions in the Corporation's common stock:
YEAR ENDED DECEMBER 31, 1998 1997 ------- ------- (in thousands) Cost of shares purchased $13,344 $16,215 Number of shares purchased 226 217 Proceeds from shares sold $10,109 $15,046 Number of shares sold 168 197 Value of shares distributed $ 4,973 $ 1,271 Number of shares distributed 82 20
Certain Plan investments are shares of Registered Investment Companies and Common/ Collective Trusts managed by American Century Investments and J.P. Morgan Investment Management. J.P. Morgan/American Century Retirement Plan Services, an affiliate, is the Recordkeeper as defined by the Plan and, therefore, these transactions qualify as party-in-interest. 6. TAX STATUS The Plan received a determination letter from the Internal Revenue Service (IRS) dated September 2, 1998, which stated that the Plan met the requirements of Section 401(a) of the Internal Revenue Code and that the earnings of the Trust are exempt from taxation under Section 501(a) of the Code. The Plan has been amended and restated since receiving the determination letter, and will file for a redetermination by the IRS that the Plan, as amended and restated, continues to satisfy such requirements. The Committee believes that the Plan, as amended and restated and as operated, continues to satisfy IRS requirements for tax exemption. -13- PHELPS DODGE EMPLOYEE SAVINGS PLAN SUPPLEMENTAL INFORMATION LINE 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES SCHEDULE I DECEMBER 31, 1998 (IN THOUSANDS) - --------------------------------------------------------------------------------
Description of investment including maturity date, rate of interest, collateral, Party-in- Identity of issue, borrower, par or maturity value, interest lessor or similar party or number of shares Cost Current Value - --------- -------------------------------------- ----------------------------- --------- ------------- CASH AND SHORT-TERM INVESTMENTS Cash 5,883 $ 5,883 $ 5,883 Schwab Value Advantage Money Fund 65,167 65,167 65,167 Schwab U.S. Treasury Money Fund 638,869 638,869 638,869 Schwab Money Market Fund 279 279 279 ---------- ----------- Total Cash and Short-Term Investments 710,198 710,198 COMMON/COLLECTIVE FUNDS: * J.P. Morgan Enhanced Index Fund 1,856,691 31,708,408 39,753,057 * J.P. Morgan Interest Income Fund 64,472,301 64,472,301 64,472,301 ---------- ----------- Total Common/Collective Funds 96,180,709 104,225,358 COMMON STOCKS: A.O. Tatneft Sponsored 1,000 2,405 1,937 Action Performance Co. 40 1,195 1,415 Alaska Air Group Inc. 500 19,717 22,125 Alba-Waldensian Inc. 50 1,052 1,268 Alydaar Software Corp. 9,500 70,004 78,375 America Online Inc., Del. 1,520 130,353 235,790 American West Holding CP CL B 150 2,017 2,550 Applied Cellular Tech., Inc. 50 220 177 Aztar Corp. 400 2,030 2,025 Barnes & Noble 50 1,461 2,125 Bear Stearns Cos Inc. 100 4,305 3,743 Bellsouth Corporation 124 4,984 6,185 Beyond.Com Corp. 150 4,024 3,112 Biomerica Inc. 500 545 500 Books A Million 70 1,172 910 Cameco Corp. 300 5,527 5,343 Caterpillar Inc. 9 448 413 CD Now Inc. 290 6,190 5,220 Cendant Corp. 9,350 141,826 180,571 Charles Schwab Corp. 50 2,455 2,808 Chase Manhattan Corp. 200 12,929 14,200 Chesapeake Energy Corp. 400 589 375 Ciena Corp. 800 16,241 11,700 Cisco Systems Inc. 400 30,613 37,125 Citigroup Inc. 340 15,964 16,893 Coca Cola Company 70 5,022 4,696 Compaq Computer Corp. 2,800 106,239 117,600 Computer Literacy Inc. 100 2,142 1,344
-14- PHELPS DODGE EMPLOYEE SAVINGS PLAN SUPPLEMENTAL INFORMATION LINE 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES SCHEDULE I DECEMBER 31, 1998 (IN THOUSANDS) - --------------------------------------------------------------------------------
Description of investment including maturity date, rate of interest, collateral, Party-in- Identity of issue, borrower, par or maturity value, interest lessor or similar party or number of shares Cost Current Value - --------- -------------------------------------- ----------------------------- --------- ------------- COMMON STOCKS: (CONTINUED) Core Laboratories N.V. 400 $ 6,975 $ 7,650 Countrywide Credit Inds. 100 4,299 5,019 Coyote Network Sys. Inc. 700 5,455 5,163 Cracker Barrel Old Country Store 30 705 699 Cree Research Inc. 50 2,114 2,394 Cybercash Inc. 200 3,580 3,000 Dell Computer Corp. 1,200 68,886 87,825 Delta Air Lines Inc. 100 5,305 5,200 Detour Magazine Inc. 1,500 551 609 Dial Corporation New 100 2,667 2,888 Diamond Offshore Drilling 400 8,705 9,475 Diamonds Trust Series I 501 42,798 45,876 Disney Holding Co. 100 3,105 3,000 Du Pont E I De Nemour & Co. 8 502 427 EMC Corp. Mass. 400 31,135 34,000 Egghead.Com Inc. 500 11,434 10,406 Espirito Santo Financial ADR 500 8,981 9,781 Excite Inc. 125 6,680 5,258 Fairchild Corp. Class A 200 3,230 3,150 Galtech Semi Material 500 85 43 General Electric Company 100 8,624 10,200 General Motors Corp. 6 416 432 Genzyme Corp. General 200 9,192 9,950 Global Games Corp. 2,300 630 437 Hilton Hotels Corp. 650 12,368 12,431 Home Depot Inc. 842 42,222 51,522 I Link Incorporated 350 785 744 Indo Pacific Energy Ltd. F 550 579 241 Indymac Mortgage Holdings 1,000 12,180 10,563 Internet America Inc. 452 14,268 13,108 International Speedway CL A 40 1,240 1,620 International Uranium Corp. 10,000 3,891 3,500 Iridium World Comm. CL AF 33 1,560 1,306 Kaydon Corporation 300 11,430 12,019 Kentex Energy Inc. 500 606 80 Kismet Energy Corp. 200 0 200 LSI Logic Corp. 600 10,400 9,675 Lehman Brothers Holdings Inc. 200 10,780 8,813 Lucent Technoligies Inc. 500 40,176 54,969 MBT International Inc. 1,000 1,905 7,625 Market Guide Inc. 200 2,430 2,375 MCI Worldcom Inc. 300 19,399 21,525
-15- PHELPS DODGE EMPLOYEE SAVINGS PLAN SUPPLEMENTAL INFORMATION LINE 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES SCHEDULE I DECEMBER 31, 1998 (IN THOUSANDS) - --------------------------------------------------------------------------------
Description of investment including maturity date, rate of interest, collateral, Party-in- Identity of issue, borrower, par or maturity value, interest lessor or similar party or number of shares Cost Current Value - --------- -------------------------------------- ----------------------------- --------- ------------- COMMON STOCKS: (CONTINUED) Melita International Corp. 300 2,452 6,300 MicroAge Inc. 100 1,767 1,538 Mirage Resorts Inc. 200 3,180 2,988 Monsanto Company 200 7,555 9,500 National Semiconductor Corp. 1,300 18,685 17,550 Netscape Communications 550 34,419 33,413 Northland Cranberries A 50 655 452 Occidental Pete Corp. 400 7,903 6,750 Organogenesis Inc. 200 3,030 2,050 Pairgain Technologies 200 1,686 1,538 Patterson Energy Inc. 100 495 406 Peoplesoft Inc. 700 14,985 13,256 Pfizer Incorporated 515 55,844 64,380 Philip Morris COS Inc. 8 443 428 Pogo Producing Co. 400 5,200 5,200 Poore Brothers Inc. 1,200 1,086 713 Premisys Communcations 800 5,380 7,350 Presstek Inc. 400 3,025 2,725 QAD Inc. 600 2,580 2,138 Recoton Corp. 500 8,530 8,969 Rostelecom Long 600 2,280 2,513 Royal Carribean Cruises Ltd. 251 5,615 9,273 SPDR Trust Unit SR 1 180 19,852 22,196 Safeway Inc. 1,358 63,018 82,753 Santa Fe International Corp. 300 3,949 4,350 Sara Lee Corp. 40 1,202 1,128 Schlumberger Ltd. 100 4,442 4,638 Scientific Atlanta Inc. 1,500 31,501 34,219 Shaman Pharmaceuticals 3,500 6,656 6,672 Singer Company NV 1,000 4,030 3,938 Starwood Hotels & Resorts 400 11,248 9,075 Sun Microsystems Inc. 200 14,592 17,125 TCI Satellite Ent CL A 2,000 1,124 2,875 Teleglobe Inc. 66 1,938 2,376 Tellabs Inc. 200 13,457 13,713 Tilden Associates Inc. 978 702 734 Trans Orient Pete Ltd. 700 1,357 941 TransTexas Gas Corp. 406 1,324 1,066 Union Carbide Corp. 8 345 342 United Healthcare Corp. 100 4,980 4,306
-16- PHELPS DODGE EMPLOYEE SAVINGS PLAN SUPPLEMENTAL INFORMATION LINE 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES SCHEDULE I DECEMBER 31, 1998 (IN THOUSANDS) - --------------------------------------------------------------------------------
Description of investment including maturity date, rate of interest, collateral, Party-in- Identity of issue, borrower, par or maturity value, interest lessor or similar party or number of shares Cost Current Value - --------- -------------------------------------- ----------------------------- --------- ------------- COMMON STOCKS: (CONTINUED) U.S. Airways Group Inc. 100 5,036 5,200 Viasat Inc. 100 1,030 1,006 Vista Gold Corporation 500 137 78 Vocaltec Commun. 100 1,317 1,125 Wal-Mart Stores Inc. 185 12,731 15,066 Watson Pharmaceuticals 100 5,061 6,288 Worldwide Web Netwrx Corp. 500 464 328 ---------- ----------- Total Common Stocks 1,412,230 1,676,691 REGISTERED INVESTMENT COMPANIES: * American Century Equity Growth Fund 3,612,971 66,940,340 82,041,937 * American Century Income & Growth Fund 2,149,537 52,833,552 62,865,313 American Europacific Fund 375,045 9,338,739 10,644,384 Baron Asset Fund 70 3,303 3,517 Dodge & Cox Balanced Fund 16 1,051 1,013 Dreyfus Aggressive Value Fund 224 5,234 5,544 Fidelity Contrafund II 433 4,327 4,822 Fidelity Equity Income Fund 53,481 2,417,841 2,968,218 Fidelity Magellan Fund 67,987 6,222,487 8,188,326 Fidelity Select Technology Fund 19 1,304 1,474 Janus Special Situations Fund 2,537 36,002 44,176 Janus Worldwide Fund 234 9,534 11,105 * J.P. Morgan Pierpont U.S. Small Company Fund 1,045,531 11,825,166 12,677,677 Nicholas II Fund 126 4,765 4,547 Oakmark Fund - Harris Assoc. Investment Trust 196 7,001 7,038 PBHG Mid-Cap Value Fund 393 5,000 6,148 Rydes OTC Fund 224 6,898 9,263 Rydes Series Nova Fund 184 5,074 6,104 Schwab 1000 Fund 31 1,000 1,043 Schwab S&P 500 Inv. Shares 627 10,619 11,888 Scudder Greater Europe Growth 164 4,010 4,345 Vanguard Index Trust 500 1,121 127,346 127,702 Warburg Pincus Global Telecommunications 211 5,047 6,025 Weitz Value Portfolio 292 8,321 8,479 ----------- ----------- Total Registered Investment Companies 149,823,961 179,650,088
-17- PHELPS DODGE EMPLOYEE SAVINGS PLAN SUPPLEMENTAL INFORMATION LINE 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES SCHEDULE I DECEMBER 31, 1998 (IN THOUSANDS) - --------------------------------------------------------------------------------
Description of investment including maturity date, rate of interest, collateral, Party-in- Identity of issue, borrower, par or maturity value, interest lessor or similar party or number of shares Cost Current Value - --------- ------------------------------------------ ------------------------------- ------------ ------------- INSURANCE COMPANY GENERAL ACCOUNT: Principal Life Insurance Co. - #4-09709 5.06% matures December 31, 1999 $ 1,598,346 $ 1,598,346 Sun Life of Canada - #S-00864-G-001 5.74% matures June 2000 4,107,128 4,107,128 ------------ ------------ Total Insurance Company General Account 5,705,474 5,705,474 EMPLOYER STOCK Phelps Dodge 652,080 35,594,003 33,262,544 Occidental Petroleum 8,147 172,519 142,094 ------------ ------------- Total Employer Stock 35,766,522 33,404,638 PARTICIPANT LOANS Loans to various participants 8%-12.5% maturing through 2013 -- 17,547,312 ------------ ------------- Total Assets Held for Investment $289,599,094 $ 342,919,759 ============ =============
-18- PHELPS DODGE EMPLOYEE SAVINGS PLAN SUPPLEMENTAL INFORMATION LINE 27B - SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS SCHEDULE II DECEMBER 31, 1998 - --------------------------------------------------------------------------------
AMOUNT RECEIVED DURING ORIGINAL REPORTING YEAR UNPAID IDENTITY AND ADDRESS AMOUNT OF ---------------------- BALANCE AT OF OBLIGOR LOAN PRINCIPAL INTEREST END OF YEAR ---------- ---- --------- -------- ----------- Pam Arrellen 1,000 18 3 790 2600 N. Central Ave. Phoenix, AZ 85004-3104 Ramon Madrid Jr. 6,700 83 49 6,180 2600 N. Central Phoenix, AZ 85004-3014 DETAILED DESCRIPTION OF LOAN INCLUDING DATES OF MAKING AND MATURITY, INTEREST RATE, THE TYPE AND VALUE OF COLLATERAL, ANY AMOUNT OVERDUE IDENTITY AND ADDRESS RENEGOTIATION OF THE LOAN AND THE TERMS OF THE ------------------- OF OBLIGOR RENEGOATION AND OTHER MATERIAL ITEMS PRINCIPAL INTEREST ---------- ------------------------------------ --------- -------- Pam Arrellen Promissory note dated 11/15/96 790 -- 2600 N. Central Ave. 10.25%, bi-weekly $21.39 Phoenix, AZ 85004-3104 Ramon Madrid Jr. Promissory note dated 12/15/96 6,180 -- 2600 N. Central 10.25%, bi-weekly $66.04 Phoenix, AZ 85004-3014
-19- PHELPS DODGE EMPLOYEE SAVINGS PLAN SUPPLEMENTAL INFORMATION LINE 27D - SCHEDULE OF REPORTABLE TRANSACTIONS* SCHEDULE III YEAR ENDED DECEMBER 31, 1998 - --------------------------------------------------------------------------------
IDENTITY OF PARTY LEASE INVOLVED DESCRIPTION OF ASSET PURCHASE PRICE SELLING PRICE RENTAL - ----------------- ------------------------ -------------- ------------- ------ M & I Money Market Fund $16,678,783 M & I Money Market Fund $ 51,162,488 M & I Interest Income Fund 21,709,466 M & I Interest Income Fund 25,405,288 M & I Equity Income Fund 12,916,587 M & I Equity Income Fund 53,599,152 M & I Equity Income Fund 19,468,128 M & I Growth Stock Fund 17,931,612 M & I Growth Stock Fund 71,468,977 M & I Growth Stock Fund 22,872,245 M & I S&P 500 Index Fund 15,036,872 M & I S&P 500 Index Fund 16,814,434 J.P. Morgan Enhanced Index Fund 37,981,516 J.P. Morgan Enhanced Index Fund 6,185,236 J.P. Morgan Interest Income Fund 47,482,441 J.P. Morgan Interest Income Fund 14,515,424 American Century Equity Growth Fund 74,972,484 American Century Equity Growth Fund 8,330,066 American Century Income & Growth Fund 62,276,304 American Century Income & Growth Fund 9,641,310 CURRENT EXPENSE VALUE ON IDENTITY OF PARTY INCURRED WITH TRANSACTION NET GAIN INVOLVED DESCRIPTION OF ASSET TRANSACTION COST OF ASSET DATE (LOSS) - ----------------- ------------------------ ------------- ------------- ------------ ----------- M & I Money Market Fund $ 16,678,783 $ 16,678,783 M & I Money Market Fund 51,162,488 51,162,488 M & I Interest Income Fund 21,709,466 21,709,466 M & I Interest Income Fund 23,308,533 25,405,288 $2,096,755 M & I Equity Income Fund 12,916,587 12,916,587 M & I Equity Income Fund 53,168,639 53,599,152 430,513 M & I Equity Income Fund 15,489,311 19,468,128 3,978,817 M & I Growth Stock Fund 17,931,612 17,931,612 M & I Growth Stock Fund 75,356,746 71,468,977 (3,887,769) M & I Growth Stock Fund 19,767,133 22,872,245 3,105,112 M & I S&P 500 Index Fund 15,036,872 15,036,872 M & I S&P 500 Index Fund 14,834,255 16,814,434 1,980,179 J.P. Morgan Enhanced Index Fund 37,981,516 37,981,516 J.P. Morgan Enhanced Index Fund 5,906,509 6,185,236 278,727 J.P. Morgan Interest Income Fund 47,482,441 47,482,441 J.P. Morgan Interest Income Fund 14,515,424 14,515,424 American Century Equity Growth Fund 74,972,484 74,972,484 American Century Equity Growth Fund 7,844,169 8,330,066 485,897 American Century Income & Growth Fund 62,276,304 62,276,304 American Century Income & Growth Fund 9,250,036 9,641,310 391,274
* Transactions or series of transactions in excess of 5 percent of the current value of the Plan assets as of December 31, 1997 as defined in Section 2520.103- 6 of the Department of Labor Rules and Regulations for Reporting and Disclosure under ERISA. -20- EX-23.1 2 CONSENT OF PRICEWATERHOUSECOOPERS LLP CONSENT OF INDEPENDENT ACCOUNTANTS We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 (No. 33-26442) of Phelps Dodge Corporation of our report dated June 23, 1999 relating to the financial statements, which appears in this Form 11-K. PricewaterhouseCoopers LLP Phoenix, Arizona June 25, 1999 -----END PRIVACY-ENHANCED MESSAGE-----