-----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, IJg1abmSIejW6ZY96uTPX+rZ0H+HrYPmXMamJYSeYOIT7UpZF5rCztS+nfV+XhjY oiV+LUexoal6/waSCvGC6Q== 0000820626-96-000037.txt : 19961220 0000820626-96-000037.hdr.sgml : 19961220 ACCESSION NUMBER: 0000820626-96-000037 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19961219 SROS: CSX SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: IMC GLOBAL INC CENTRAL INDEX KEY: 0000820626 STANDARD INDUSTRIAL CLASSIFICATION: AGRICULTURE CHEMICALS [2870] IRS NUMBER: 363492467 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09759 FILM NUMBER: 96683029 BUSINESS ADDRESS: STREET 1: 2100 SANDERS RD CITY: NORTHBROOK STATE: IL ZIP: 60062 BUSINESS PHONE: 8472729200 MAIL ADDRESS: STREET 1: ONE NELSON C WHITE PKWY CITY: MUNDELEIN STATE: IL ZIP: 60060 FORMER COMPANY: FORMER CONFORMED NAME: IMC FERTILIZER GROUP INC DATE OF NAME CHANGE: 19920703 11-K 1 FOR YEAR ENDED 06/30/96 - ----------------------------------------------------------------------- ------------------------------------------------------------------- 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 (FEE REQUIRED) For the fiscal year ended June 30, 1996 OR --- TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED) For the transition period from --------- to --------- Commission file number 1-9759 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: INVESTMENT PLAN FOR SALARIED EMPLOYEES OF IMC GLOBAL OPERATIONS INC. B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: IMC GLOBAL INC. 2100 Sanders Road, Northbrook, Illinois 60062 ------------------------------------------------------------------- - ----------------------------------------------------------------------- CONTENTS -------- Report of independent auditors Financial statements - -------------------- Statements of assets available for benefits, with fund information Statements of changes in assets available for benefits, with fund information Notes to financial statements Supplemental schedules Schedule - ---------------------- -------- Item 27a - Schedule of assets held for investment purposes 1 Item 27d - Schedule of reportable transactions 2 REPORT OF INDEPENDENT AUDITORS Plan Administrator Investment Plan for Salaried Employees of IMC Global Operations Inc. We have audited the accompanying statements of assets available for benefits of the Investment Plan for Salaried Employees of IMC Global Operations Inc. as of June 30, 1996 and 1995, and the related statements of changes in assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the assets available for benefits of the Plan at June 30, 1996 and 1995, and the changes in its assets available for benefits for the years then ended, in conformity with generally accepted accounting principles. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplemental schedules of assets held for investment purposes as of June 30, 1996, and reportable transactions for the year then ended, are presented for purposes of complying with the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, and are not a required part of the basic financial statements. The Fund Information in the statement of assets available for benefits and the statement of changes in assets available for benefits is presented for purposes of additional analysis rather than to present the assets available for benefits and changes in assets available for benefits of each fund. The supplemental schedules and Fund Information have been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. ERNST & YOUNG LLP October 23, 1996 INVESTMENT PLAN FOR SALARIED EMPLOYEES OF IMC GLOBAL OPERATIONS INC. ----------------------------------------------------- STATEMENT OF ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION ------------------------------------------------------------------ June 30, 1996 -------------
Fund Information - -------------------------------------------------------------------------------- - ------------------------------------- IMC Fixed Money Equity Bond Global Income Market Balanced Growth Loan Total Fund Fund Stock Fund Fund Fund Fund Fund Fund ------------------------------------------------------------- - -------------------------------------- ASSETS - --------------------- Investments, at fair value: Master trust funds - IMC Global Inc. Stock Fund $ 9,709,749 $9,709,749 IMC Global Fixed Fund 55,789,610 $55,789,610 IMC Global Bond Fund 2,230,150 $2,230,150 Mutual funds - Fidelity Equity- Income Fund,Inc. 19,997,184 $19,997,184 Vanguard Money Market Reserves, Inc.-Prime Portfolio 982,782 $982,782 Vanguard Wellington Fund, Inc. 4,970,916 $4,970,916 Fidelity Magellan Fund, Inc. 5,362,674 $5,362,674 Loans to partici- pants 3,518,835 $3,518,835 ------------ ----------- ---------- ----------- --------- - -- ---------- ---------- ---------- ---------- 102,561,900 19,997,184 2,230,150 9,709,749 55,789,610 982,782 4,970,916 5,362,674 3,518,835 Receivables: Employee contri- butions 370,403 86,744 7,735 55,488 127,117 1,913 34,024 57,382 Employer contri- butions 2,299,821 522,202 56,273 373,737 814,088 15,164 200,656 317,701 Accrued interest and dividends 4,056 4,056 ------------ ----------- ---------- ----------- --------- - -- ---------- ---------- ---------- ---------- Total receivables 2,674,280 608,946 64,008 429,225 941,205 21,133 234,680 375,083 ------------ ----------- ---------- ----------- --------- - -- ---------- ---------- ---------- ---------- Assets available for benefits $105,236,180 $20,606,130 $2,294,158 $10,138,974 $56,730,815 $1,003,915 $5,205,596 $5,737,757 $3,518,835 ============ =========== ========== =========== =========== ========== ========== ========== ========== (See Notes to Financial Statements)
INVESTMENT PLAN FOR SALARIED EMPLOYEES OF IMC GLOBAL OPERATIONS INC. ---------------------------------------------------- STATEMENT OF ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION ------------------------------------------------------------------ June 30, 1995 -------------
Fund Information --------------------------------------------------- - ------------------------------- IMC Fixed Money Equity Bond Global Income Market Balanced Growth Total Fund Fund Stock Fund Fund Fund Fund Fund --------------------------------------------------------------- - ---------------------------------- ASSETS - ------------------- Investments, at fair value: IMC Global Inc. common stock $ 8,345,859 $8,345,859 Mutual funds - Fidelity Equity- Income Fund, Inc. 12,931,641$12,931,641 Bond Fund of America, Inc. 2,232,601 $2,232,601 Dreyfus Treasury Cash Management Fund 11,007,605 $11,007,605 Vanguard Money Market Reserves, Inc. - Prime Portfolio 600,361 $600,361 Vanguard Wellington Fund, Inc. 2,058,884 $2,058,884 Fidelity Magellan Fund, Inc. 2,964,546 $2,964,546 LaSalle National Trust, N.A. Income Plus Fund 30,022,894 30,022,894 The Northern Trust Company Collective Short Term Investment Fund 147,559 147,559 Loans to participants 3,479,503 401,144 150,456 244,761 2,551,437 45,067 58,465 28,173 Investments, at contract value: Guaranteed investment contracts - CDC Investment Management Corp.6,028,752 6,028,752 Commonwealth Life Insurance Company 6,428,779 6,428,779 Hartford Life Insurance Company 5,211,493 5,211,493 ----------- ----------- ---------- -------- - -- ----------- -------- ---------- ---------- Total investments91,460,47713,332,7852,383,057 8,738,179 61,250,960 645,428 2,117,349 2,992,719 Receivables: Employer contri- butions 2,838,903 550,979 89,638 447,037 1,212,873 18,941 191,885 327,550 Accrued interest and dividends 152,986 546 152,440 ----------- ----------- ---------- -------- - -- ----------- -------- ---------- ---------- Total receivables2,991,889 550,979 89,638 447,583 1,365,313 18,941 191,885 327,550 ----------- ----------- ---------- -------- - -- ----------- -------- ---------- ---------- Assets available for benefits $94,452,366$13,883,764$2,472,695 $9,185,762$62,616,273 $664,369$2,309,234$3,320,269 =========== =========== ========== ========== =========== ======== ========== ========== (See Notes to Financial Statements)
INVESTMENT PLAN FOR SALARIED EMPLOYEES OF IMC GLOBAL OPERATIONS INC. ----------------------------------------------------- STATEMENT OF CHANGES IN ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION ----------------------------------------------------------------------------- For the Year Ended June 30, 1996 --------------------------------
- -------------------------------------------------------------------------------- - ------------------------------------- IMC Fixed Money Equity Bond Global Income Market Balanced Growth Loan Total Fund Fund Stock Fund Fund Fund Fund Fund Fund ------------------------------------------------------------ - ------------------------------------------------ Investment income: Interest and dividends $ 3,399,891 $ 405,549 $ 87,310 $ 37,533 $ 1,917,210 $ 38,523 $ 113,257 $ 800,509 Net appreciation (depreciation) in fair value of investments 6,324,927 2,907,518 72,443 3,251,585 4,303 461,386 (372,308) Income (loss) from master trust funds 1,212,541 9,781 (634,647) 1,837,407 Loans to partici- pants-interest 296,129 18,520 6,406 10,016 104,483 1,576 3,771 2,653 $148,704 ------------ ----------- ---------- ----------- --------- - -- ---------- ---------- ---------- ---------- Total investment income 11,233,488 3,331,587 175,940 2,664,487 3,859,100 44,402 578,414 430,854 148,704 Contributions: Participants 4,461,479 957,184 98,398 617,255 1,764,023 23,328 351,879 649,412 Employer 2,840,431 635,850 70,439 455,083 1,026,519 18,909 242,096 391,535 ------------ ----------- ---------- ----------- --------- - -- ---------- ---------- ---------- ---------- Total contri- butions 7,301,910 1,593,034 168,837 1,072,338 2,790,542 42,237 593,975 1,040,947 Transfers from other plans 157,153 39,087 47,840 15,900 2,931 14,033 28,736 8,626 Cash and stock distributed to with- drawing partici- pants (7,908,737) (711,022) (122,415) (499,417) (5,908,804) (43,275) (135,630) (453,821) (34,353) Transfers of invest- ment direction 2,469,680 (448,739) (2,300,096) (6,629,227) 296,182 1,845,570 1,370,772 3,395,858 ------------ ----------- ---------- ----------- --------- - -- ---------- ---------- ---------- ---------- Net increase (decrease) in assets available for benefits 10,783,814 6,722,366 (178,537) 953,212 (5,885,458) 339,546 2,896,362 2,417,488 3,518,835 Assets available for benefits - beginning of year 94,452,366 13,883,764 2,472,695 9,185,762 62,616,273 664,369 2,309,234 3,320,269 ------------ ----------- ---------- ----------- ---------- - - ---------- ---------- ---------- ---------- Assets available for benefits - end of year $105,236,180 $20,606,130 $2,294,158 $10,138,974 $56,730,815 $1,003,915 $5,205,596 $5,737,757 $3,518,835 ============ =========== ========== =========== =========== ========== ========== ========== ========== (See Notes to Financial Statements)
INVESTMENT PLAN FOR SALARIED EMPLOYEES OF IMC GLOBAL OPERATIONS INC. ----------------------------------------------------- STATEMENT OF CHANGES IN ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION ----------------------------------------------------------------------------- For the Year Ended June 30, 1995 ----------------------------------
Fund Information --------------------------------------------------- - ------------------------------- IMC Fixed Money Equity Bond Global Income Market Balanced Growth Total Fund Fund Stock Fund Fund Fund Fund Fund --------------------------------------------------------------- - ---------------------------------- Investment income: Interest and dividends $ 4,453,127$ 357,145 $ 151,239 $ 55,092$ 3,792,391 $ 31,436$ 49,307$ 16,517 Net appreciation in fair value of investments 5,975,628 1,499,454 52,416 3,732,061 192,013 499,684 Loans to participants - interest 259,644 30,669 7,768 26,522 188,581 3,186 1,683 1,235 ----------- ----------- ---------- -------- - -- ----------- -------- ---------- ---------- Total investment income 10,688,399 1,887,268 211,423 3,813,675 3,980,972 34,622 243,003 517,436 Contributions: Participants 4,207,614 797,290 119,659 644,879 1,780,844 27,231 333,043 504,668 Employer 3,401,893 655,802 108,150 540,553 1,448,028 23,371 234,431 391,558 ----------- ----------- ---------- -------- - -- ----------- -------- ---------- ---------- Total contributions7,609,5071,453,092 227,809 1,185,432 3,228,872 50,602 567,474 889,226 Transfers from other plans 714,535 179,187 16,282 67,705 213,505 28,649 64,908 144,299 Cash and stock distributed to with- drawing partici- pants (8,260,574) (526,578) (46,478) (177,121)(7,399,096) (61,433) (43,996) (5,872) Transfers of invest- ment direction 177 76,025(2,940,422) (346,247) (35,558) 1,477,845 1,768,180 ----------- ----------- ---------- -------- - -- ----------- -------- ---------- ---------- Net increase (decrease) in assets available for benefits 10,751,867 2,993,146 485,061 1,949,269 (321,994) 16,882 2,309,234 3,320,269 Assets available for benefits -beginning of year83,700,49910,890,6181,987,634 7,236,493 62,938,267 647,487 ----------- ----------- ---------- -------- - -- ----------- -------- ---------- ---------- Assets available for benefits -end of year $94,452,366$13,883,764$2,472,695 $9,185,762$62,616,273 $664,369$2,309,234$3,320,269 =========== =========== ========== ========== =========== ======== ========== ========== (See Notes to Financial Statements)
INVESTMENT PLAN FOR SALARIED EMPLOYEES OF IMC GLOBAL OPERATIONS INC. ------------------------------------------------------ NOTES TO FINANCIAL STATEMENTS ----------------------------- 1. Description of the Plan ----------------------- The following description of the Investment Plan for Salaried Employees of IMC Global Operations Inc. (the Plan), formerly the Investment Plan for Salaried Employees of IMC Fertilizer, Inc., provides only general information. Participants should refer to the Plan document for a more complete description of the Plan's provisions. General - ------- The Plan was established on March 1, 1988 and was most recently restated on July 1, 1993 and amended through March 1, 1995. Salaried employees of IMC Global Operations Inc. (a wholly-owned subsidiary of IMC Global Inc.) and its wholly-owned domestic subsidiaries (the Company) are eligible to participate in the Plan upon completion of one year of service. Effective September 1, 1996, participation is immediate. While the Company has not expressed any intent to terminate the Plan, it is free to do so at any time. Contributions - ------------- The Plan is funded by contributions from participants in the form of payroll deductions/salary reductions of up to 15 percent of participants' base monthly salaries. A participant may change the amount of payroll deduction/salary reduction twice a year, as of July 1 or January 1, upon giving the required notice. The Plan provides a qualified cash or deferred arrangement within the meaning of Section 401(k) of the Internal Revenue Code (the IRC). Salary reduction contributions, elected by certain participants, may be reduced (or refunded) to comply with certain non-discrimination requirements of Section 401(k) or the limitations of Section 415 of the IRC. In addition, salary reduction contributions cannot exceed $9,500 in calendar year 1996 ($9,240 for calendar year 1995). The limitation on salary reduction contributions can be adjusted or recharacterized as after-tax contributions not to exceed the lesser of the 15 percent or $9,500 ($9,240 in 1995) limits described above each July 1 and January 1 by the Employee Benefits Committee. In addition, the Plan also is funded by employer contributions, as determined by IMC Global Inc.'s Board of Directors, of not less than 20 percent of a participant's eligible contributions, which are contributions that do not exceed 6 percent of a participant's base monthly salary. IMC Global Inc. may make additional contributions each year as determined by its Board of Directors. Employer contributions are subject to certain limitations imposed by Section 415 of the IRC. Total employer contributions were equal to 100 percent of participants' eligible contributions for the year ended June 30, 1996 (125 percent for the year ended June 30, 1995). Under certain circumstances, participants may rollover their vested benefits from other plans to the Plan. Participant Accounts - -------------------- Separate accounts are maintained for each participant. Each participant's account is adjusted for participant and employer contributions, withdrawals and fees, if any, interest, dividends and net realized or unrealized gains or losses. Administrative Expenses - ----------------------- Certain administrative expenses of the Plan are borne by the Company. Investment Programs - ------------------- Since January 1, 1996, the Plan's investments are administered by Marshall & Ilsley Trust Company under a trust agreement dated January 1, 1996. Prior to that time, the trustee was The Northern Trust Company. Investment programs available to participants are as follows: Equity Fund - Investments are made in shares of the Fidelity Equity-Income Fund, Inc., a mutual fund which invests at least 65 percent of its assets in income producing equity securities. The balance of the portfolio is invested in all types of domestic and foreign instruments, including bonds. Bond Fund - Since January 1, 1996, investments are made in shares of the IMC Global Bond Fund, a pooled bond fund shared only by other IMC Global Operations Inc. 401(k) plans. The fund invests substantially all of the assets in shares of the Bond Fund of America, Inc., a mutual fund comprised of marketable corporate debt securities, U.S. Government securities, mortgage-related securities, other asset-backed securities and cash or money market instruments. Prior to January 1, 1996, the Bond Fund of America, Inc. shares were held directly. IMC Global Stock Fund - Investments are made solely in the common stock of IMC Global Inc. Fixed Income Fund - Since January 1, 1996, investments are made in shares of IMC Global Fixed Fund, a pooled fund shared only by other IMC Global Operations Inc. 401(k) plans. Prior to that time, investments of the Fixed Income Fund were managed by LaSalle Street Capital Management, Ltd. Investments are made in guaranteed investment contracts (GICs), the Marshall Money Market Fund and, prior to January 1, 1996, in the LaSalle National Trust, N.A. Income Plus Fund. The 1995 holdings are described below: (a) A contract with CDC Investment Management Corp. with a guaranteed interest rate of 7.5 percent through June 30, 2000. (b) A contract with Commonwealth Life Insurance Company with a guaranteed interest rate of 7.27 percent through July 6, 1998. (c) A GIC with Hartford Life Insurance Company with a guaranteed interest rate of 8.05 percent through June 30, 1995. A portion of the GIC balance was reinvested in a new Hartford Life Insurance Company GIC in December 1994. The remaining balance was temporarily reinvested in the Dreyfus Treasury Cash Management Fund at June 30, 1995 before being reinvested in the GIC described in (d) below. (d) A contract with Hartford Life Insurance Company with a guaranteed interest rate of 8.15 percent through December 19, 1997. (e) The LaSalle National Trust, N.A. Income Plus Fund, a pooled fund which invests primarily in investment contracts, U.S. Government money market investments and alternative contracts backed by the U.S. Government, U.S. Government agency and other AAA rated fixed income instruments. (f) Another GIC with Provident National Assurance Company with a guaranteed interest rate of 8.3 percent through June 30, 1995. The Provident National Assurance Company contract also matured in four installments. Proceeds from the maturity of the final installment payment were invested in the LaSalle National Trust, N.A. Income Plus Fund described in (h) below. Money Market Fund - Investments are made in shares of the Vanguard Money Market Reserves, Inc. - Prime Portfolio, a mutual fund. The Prime Portfolio invests in high quality money market obligations that mature in 13 months or less and include negotiable certificates of deposit, bankers' acceptances, commercial paper, short-term corporate obligations, short-term Eurodollar and Yankee bank obligations, U.S. Treasury obligations and securities issued or guaranteed by agencies and instrumentalities of the U.S. Government. Balanced Fund - Investments are made in shares of the Vanguard Wellington Fund, Inc. a mutual fund which invests in a diversified portfolio of 60-70 percent common stocks and 30-40 percent bonds. Growth Fund - Investments are made in shares of the Fidelity Magellan Fund, Inc., a mutual fund which invests in common stock and securities of domestic, foreign and multinational issuers. Loan Fund - Investments are loans made to participants, as described below. Participants elect their desired investment program upon joining the Plan. Since April 1,1996, they may elect to change the investment direction of their existing account balances and their future contributions daily. Prior to that time, as of July 1, October 1, January 1 and April 1 of any Plan year, upon giving prescribed notice, participants could elect to transfer the investment direction of their future contributions or their existing account balances in any fund or funds to any other fund, or in 25 percent increments to any combination of funds. Effective July 1, 1991 through March 31, 1996, participants could not transfer funds of existing account balances between the Fixed Income Fund and the Bond Fund nor between the Fixed Income Fund and the Money Market Fund. The Balanced Fund and Growth Fund investment programs were introduced to the Plan effective January 1, 1996; at the same time loans were transferred to the Loan Fund. Vesting - ------- All Plan participants are immediately and nonforfeitably vested in their plan accounts. Withdrawals - ----------- Participants may withdraw their interest in the Plan upon termination of employment. Subject to certain requirements and limitations, participants may withdraw funds. Most withdrawals made by participants, including hardship withdrawals from their Salary Reduction Accounts, will result in suspension of Plan participation for at least one year. Except as noted below, participants will receive distribution of their interest in the Plan in a lump sum payment. Deferred Distributions - ---------------------- Participants who terminate their employment and are eligible for early or normal retirement under any Company pension plan will be permitted to elect, at any time prior to retirement, to defer receipt of their Plan distributions until no later than their 70th birthday. Participants electing deferral must: (1) elect to receive their distributions in: (a) a lump sum on the date of distribution, or (b) in equal annual installments not to exceed ten, and (2) make an election for the method of distribution in the event of their death prior to total distribution. Participants who terminate their employment prior to eligibility for early or normal retirement and whose Plan accounts exceed $3,500 must consent to distribution of their accounts. Participants may defer receipt of their Plan distribution until no later than their 70th birthdays. Loans to Participants - --------------------- Participants in the Plan may be granted loans subject to certain terms and maximum dollar or Plan account balance limits, as defined by the Plan. The amount of any such loan is borrowed from the account of the participant to whom the loan was made and such account does not share in the allocation of income, gains and losses of the investment funds to the extent of the outstanding balance of such loan. Principal repayments, which are over one to five years for general purpose loans and over one to ten years for residential loans, and related interest income are credited to the borrowing participant's account. Loan payments are made by monthly payroll deductions. Each loan bears interest at the prevailing rate for loans of similar risk, date of maturity and date of grant. 2. Summary of Significant Accounting Policies ------------------------------------------ Investment Valuation - -------------------- All investments are carried at fair value, except the guaranteed investment contracts which are carried at contract value. Fair value is the last reported sale price on the last business day of the month for securities traded on a national securities exchange and in the over- the-counter market. Fair value for shares or units of the master trust funds, the LaSalle National Trust, N.A. Income Plus Fund, The Northern Trust Company Collective Trust Short Term Investment Fund and the mutual funds is the net asset value of those shares or units, as determined by the respective funds. Loans to participants are valued at cost which approximates fair value. Investment in Trusts - -------------------- As of January 1, 1996, investment assets of the Bond Fund, the Company Stock Fund and the Fixed Income Fund were made in shares of IMC Global Inc. pooled funds shared by other IMC Global Inc. 401(k) plans. The plan was a 100 percent, 100 percent and 99.5 percent, respectively, participant in the IMC Global Bond Fund, the IMC Global Stock Fund and the IMC Global Fixed Income Fund at June 30, 1996. The assets of the pooled funds as of June 30, 1996 were as follows: IMC Global IMC Global IMC Global Company Fixed Bond Fund Stock Fund Income Fund --------- ---------- ----------- Bond Fund of America, Inc. $2,202,956 IMC Global Inc. common stock $9,434,770 LaSalle Natoinal Trust, N.A. Income Plus Fund $26,827,224 Guaranteed Investment Contracts - Commonwealth Life Insurance Company 6,776,887 Hartford Life Insurance Company 5,527,202 CDC Investment Management Corp. 6,138,138 National Westminster Bank Group 4,860,622 Rabobank Alternative 5,111,051 Marshall Money Market Fund 27,058 321,888 296,649 Pending transaction (47,947) 6,245 Accrued interest and dividends 136 1,038 509,020 ---------- ---------- ----------- Net assets of pooled fund $2,230,150 $9,709,749 $56,053,038 ========== ========== =========== Changes in the pooled balances from January 1 through June 30, 1996 are summarized as follows: IMC Global IMC Global IMC Global Company Fixed Bond Fund Stock Fund Income Fund --------- ---------- ----------- Additions: Interest and dividend income $ 42,106 $ 22,522 $ 1,116,667 Net appreciation (depreciation) in fair value of investments (22,900) 4,139,424 (4,296) Contributions and transfers from other plans 90,886 1,063,880 1,934,134 ---------- ---------- ----------- 110,092 5,225,826 3,046,505 Deductions: Benefits paid 234,355 1,549,921 6,312,940 Investment expenses 49,689 ---------- ---------- ----------- 234,355 1,549,921 6,362,629 ---------- ---------- ----------- Net increase (decrease) in assets (124,263) 3,675,905 (3,316,124) Assets transferred at January 1, 1996 2,354,413 6,033,844 59,369,162 ---------- ---------- ----------- Pooled fund assets at June 30, 1996 $2,230,150 $9,709,749 $56,053,036 ========== ========== =========== Income Recognition - ------------------ Purchases and sales of securities are accounted for on the trade date (date the order to buy or sell is executed). Dividend income is recorded on the ex-dividend date. Interest from investments is recorded as earned on an accrual basis. Contributions - ------------- Contributions from participants are recorded monthly when due from the Company. Contributions by the Company are made monthly based on the minimum contribution percentage (20 percent) required by the Plan. Any additional contributions by the Company are accrued when approved by its Board of Directors. Participant Withdrawals - ----------------------- Withdrawals are recorded when payments are made to participants. Withdrawals requested but not paid are presented in Department of Labor Form 5500 (Annual Return/Report of Employee Benefit Plan) as liabilities. The following schedule reconciles the net assets available for benefits per the Form 5500 to the financial statements:
IMC Fixed Money Equity Bond Global Income Market Balanced Growth Loan Total Fund Fund Stock Fund Fund Fund Fund Fund Fund ---------------------------------------------------------------- - --------------------------------------------- June 30, 1996 - ------------- Net assets available for benefits per the Form 5500 $105,118,045 $20,588,738 $2,286,330 $10,145,110 $56,637,957 $1,003,915 $5,201,001 $5,736,159 $3,518,635 Amounts allocated to withdrawing participants - June 30, 1995 133,135 17,392 7,828 2,408 99,314 4,595 1,598 June 30, 1996 (15,000) (8,544) (6,456) ------------ ----------- ---------- ------------ --------- - -- ---------- ---------- ---------- ---------- Net assets available for benefits per the financial statements $105,236,180 $20,606,130 $2,294,158 $10,138,974 $56,730,815 $1,003,915 $5,205,596 $5,737,757 $3,518,835 ============ =========== ========== =========== =========== ========== ========== ========== ========== June 30, 1995 - ------------- Net assets available for benefits per the Form 5500 $93,503,720 $13,815,731 $2,473,827 $ 9,187,782 $61,729,257 $ 661,427 $2,313,829 $3,321,867 Amounts allocated to withdrawing participants - June 30, 1994 1,081,781 85,425 6,696 388 986,330 2,942 June 30, 1995 (133,135) (17,392) (7,828) (2,408) (99,314) (4,595) (1,598) ----------- ----------- ---------- ------------ --------- - -- ---------- ---------- ---------- Net assets available for benefits per the financial statements $94,452,366 $13,883,764 $2,472,695 $ 9,185,762 $62,616,273 $ 664,369 $2,309,234 $3,320,269 =========== =========== ========== =========== =========== ========== ========== ==========
The following schedule reconciles the withdrawal amounts per the Form 5500 to the statement of changes in assets available for benefits:
IMC Fixed Money Equity Bond Global Income Market Balanced Growth Loan Total Fund Fund Stock Fund Fund Fund Fund Fund Fund ----------------------------------------------------- - ---------------------------------------------- Year ended June 30, 1996 - ------------------------ Withdrawals per Form 5500 $7,790,602 $693,630 $114,587 $505,553 $5,815,946 $43,275 $131,035 $452,223 $34,353 Withdrawal liabilities per Form 5500: at June 30, 1995 133,135 17,392 7,828 2,408 99,314 4,595 1,598 at June 30, 1996 (15,000) (8,544) (6,456) ---------- -------- -------- -------- ---------- ------- -------- --------- ------- Withdrawals per statement of changes in assets available for benefits $7,908,737 $711,022 $122,415 $499,417 $5,908,804 $43,275 $135,630 $453,821 $34,353 ========== ======== ======== ======== ========== ======= ======== ========= ======= Year ended June 30, 1995 - ------------------------ Withdrawals per Form 5500 $7,311,928 $458,545 $ 47,610 $179,141 $6,512,080 $58,491 $ 48,591 $ 7,470 Withdrawal liabilities per Form 5500: at June 30, 1994 1,081,781 85,425 6,696 388 986,330 2,942 at June 30, 1995 (133,135) (17,392) (7,828) (2,408) (99,314) (4,595) (1,598) ---------- -------- -------- -------- ---------- ------- -------- --------- Withdrawals per statement of changes in assets available for benefits $8,260,574 $526,578 $ 46,478 $177,121 $7,399,096 $61,433 $ 43,996 $ 5,872 ========== ======== ======== ======== ========== ======= ======== =========
3. Net Appreciation (Depreciation) in Fair Value of Investments ------------------------------------------------------------ During 1996 and 1995, net appreciation (depreciation) in fair value of the Plan's investments as determined by quoted market price was as follows:
IMC Fixed Money Equity Bond Global Income Market Balanced Growth Total Fund Fund Stock Fund Fund Fund Fund Fund Year ended June 30, 1996 - ------------------------ Common stocks$3,251,585 $3,251,585 Mutual funds 3,073,342$2,907,518$72,443 $4,303$461,386$(372,308) ---------- ---------- ------- ---------- ------ -------- --------- Net appreciation (depreciation) in fair value $6,324,927$2,907,518$72,443$3,251,585 $4,303$461,386$(372,308) ========== ========== ======= ========== ====== ======== ========= Year ended June 30, 1995 Common stocks$3,732,061 $3,732,061 Mutual funds 2,243,567$1,499,454$52,416 $192,013$499,684 ---------- ---------- ------- ---------- -------- -------- Net appreciation in fair value$5,975,628$1,499,454$52,416$3,732,061 $192,013$499,684 ========== ========== ======= ========== ======== ========
4. Significant Investments ----------------------- Investments that represent 5 percent or more of assets available for benefits at June 30 were as follows: 1996 1995 ----------- ----------- IMC Global Inc. Stock Fund $ 9,709,749 IMC Global Inc. common stock $ 8,345,859 IMC Global Inc. Fixed Fund 55,789,610 Mutual funds - Fidelity Equity-Income Fund, Inc. 19,997,184 12,931,641 Dreyfus Treasury Cash Management Fund 11,007,605 Fidelity Magellan Fund, Inc. 5,362,674 2,964,546 LaSalle National Trust, N.A. Income Plus Fund 30,022,894 Guaranteed investment contracts - CDC Investment Management Corp. 6,028,752 Commonwealth Life Insurance Company 6,428,779 Hartford Life Insurance Company 5,211,493 5. Federal Income Tax Status ------------------------- The Internal Revenue Service ruled June 7, 1989 that the Plan qualified under Section 401(a) of the IRC and, therefore, the related trust is not subject to tax under present income tax law. Once qualified, the Plan is required to operate in conformity with the IRC to maintain its qualification. The Plan Administrator is not aware of any course of action or series of events that have occurred that might adversely affect the Plan's qualified status. SUPPLEMENTAL SCHEDULES ---------------------- Schedule 1 INVESTMENT PLAN FOR SALARIED EMPLOYEES OF IMC GLOBAL OPERATIONS INC. ------------------------------------------------------ ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES ---------------------------------------------------------- June 30, 1996 -------------------------------------- Principal amount or number of Current Description shares or units Cost value - ------------------------- ---------------- ---------- ------------ Master trust funds - IMC Global Inc. Stock Fund257,872 units $ 6,001,724 $ 9,709,749 IMC Global Inc. Bond Fund220,664 units 2,250,815 2,230,150 IMC Global Fixed Fund5,493,885 units 54,949,501 55,789,610 Mutual funds - Fidelity Equity-Income Fund, Inc. 496,578 shares 19,664,552 19,997,184 Vanguard Money Market Reserves, Inc. - Prime Portfolio 982,782 shares 982,782 982,782 Vanguard Wellington Fund, Inc. 197,337 shares 4,941,912 4,970,916 Fidelity Magellan Fund, Inc. 71,694 shares 6,043,366 5,362,674 Loans to participants (7% - 11.9%) 3,518,835 ------------ $102,561,900 ============ Schedule 2 INVESTMENT PLAN FOR SALARIED EMPLOYEES OF IMC GLOBAL OPERATIONS INC. --------------------------------------- ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS ---------------------------------------------- FOR THE YEAR ENDED JUNE 30, 1996 -------------------------------- Purchases Sales (B) Gain ------------ ------------------------------------ Description Number Cost Number Cost Proceeds (Loss) - ------------------ ----- ----- ------ -------- ----------------- Category (i) trans- actions - individual transactions in excess of 5 percent of plan assets: Rabobank Alternative, 6.1416%, due 3/15/01 1 $4,994,803 Hartford Life Insurance Company, 8.15%, through 12/19/97 1 $11,022,370 $11,022,370 (B) Category (iii) trans- actions - series of transactions in excess of 5 percent of plan assets: Fidelity Equity-Income Fund, Inc. 61 4,389,468 44 1,310,258 1,349,875 $ 39,617 Fidelity Magellan Fund, Inc. 56 2,487,734 44 817,189 761,453 (55,736) Dreyfus Treasury Cash Management Fund 14 1,362,595 14 12,370,200 12,370,200 (B) LaSalle National Trust, N.A. Income Plus Fund 40 26,959,251 25 26,407,669 26,407,669 (B) The Northern Trust Company Collective Short Term Invest- ment Fund (A) 26 3,101,072 17 17,547,053 17,547,053 (B) IMC Global Fixed Income Fund 38 1,820,450 45 6,224,643 6,290,600 65,957 Hartford Life Insurance Company, 8.15%, through 12/19/97 4 111,203 1 11,022,370 11,022,370 (B) National Westminster Bank Group, 6.73%, through 11/15/98 9 5,039,227 8 151,119 151,119 (B) Rabobank Alternative, 6.1416%, through 3/15/01 3 5,285,100 Marshall Money Market Fund 62 3,156,318 58 3,156,318 3,156,318 (B) NOTES: (A) Party-in-interest transactions not prohibited by ERISA. (B) Due to the nature of these transactions, there is no gain or loss on disposition. (C) There were no category (ii) or (iv) reportable transactions during the year ended June 30, 1995. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, I, the undersigned Chairman of the Employee Benefits Committee, have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. Investment Plan for Salaried Employees of IMC Global Operations Inc. BRIAN J. SMITH ------------------------------------------- Brian J.Smith Chairman of the Employee Benefits Committee Date: December 19, 1996 Pursuant to the requirements of the Securities Exchange Act of 1934, this annual report has been signed below by the following persons in their capacities as members of the Employee Benefits Committee and on the dates indicated. Signature Title Date - ----------------------------------------------------------------------- BRIAN J. SMITH - -------------- Brian J. Smith Executive Vice President December 19, 1996 Chief Financial Officer B. RUSSELL LOCKRIDGE - -------------------- B. Russell Lockridge Senior Vice President, December 19, 1996 Human Resources MARSCHALL I. SMITH - ------------------ Marschall I. Smith Senior Vice President, December 19, 1996 Secretary and General Counsel ROBERT E. FOWLER, JR. - --------------------- Robert E. Fowler, Jr. President and December 19, 1996 Chief Operating Officer EX-23 2 CONSENT OF INDEPENDENT AUDITORS Exhibit 23 CONSENT OF INDEPENDENT AUDITORS We consent to the incorporation by reference in the Registration Statement (Form S-8 No. 33-22079) pertaining to the Investment Plan for Salaried Employees of IMC Global Operations Inc. and in the related Prospectus of our report dated October 23, 1996, with respect to the financial statements and supplemental schedules of the Investment Plan for Salaried Employees of IMC Global Operations Inc. included in this Annual Report (Form 11-K) for the year ended June 30, 1996. ERNST & YOUNG LLP Chicago, Illinois December 19, 1996 Docket No. 104771 -----END PRIVACY-ENHANCED MESSAGE-----