PAGE 1
=============================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1994
COMMISSION FILE NUMBER 1-815
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
CONSOL PLAZA
1800 WASHINGTON ROAD
PITTSBURGH, PENNSYLVANIA 15241
(FULL TITLE OF THE PLAN)
E. I. DU PONT DE NEMOURS AND COMPANY
1007 MARKET STREET
WILMINGTON, DELAWARE 19898
(NAME AND ADDRESS OF PRINCIPAL EXECUTIVE OFFICE OF ISSUER)
=============================================================================
1
PAGE 2
INDEX
INVESTMENT PLAN FOR SALARIED EMPLOYEES OF CONSOL INC.
Index to Financial Statements and Additional Information
Page(s)
-------
Report of Independent Auditors ................................ 4
Financial Statements:
Statements of Net Assets Available for Plan 5 - 6
Benefits at December 31, 1994 and 1993 ....................
Statements of Changes in Net Assets Available 7 - 10
for Plan Benefits for the Years Ended December 31,
1994 and 1993 .............................................
Notes to Financial Statements ............................... 11 - 17
Additional Information:
Schedule of Assets Held for Investment Purposes at
December 31, 1994 (Schedule I) ............................ 18 - 19
Schedule of Reportable Transactions for the
Year Ended December 31, 1994 (Schedule II) ................ 20
EXHIBITS
Exhibit
Number
24 Consent of Independent Auditors ..................... 22
2
PAGE 3
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Investment Plan Committee has duly caused this Annual Report to
be signed on its behalf by the undersigned hereunto duly authorized.
Investment Plan for Salaried Employees
of CONSOL Inc.
(Name of Plan)
Date: June 26, 1995
Michael F. Nemser
Vice President & Treasurer
CONSOL Inc.
3
PAGE 4
SIGNATURE
REPORT OF INDEPENDENT AUDITORS
To the Investment Plan Committee of the
Investment Plan for Salaried Employees of CONSOL Inc.
We have audited the accompanying statements of net assets available for plan
benefits of the Investment Plan for Salaried Employees of CONSOL Inc. as of
December 31, 1994 and 1993, and the related statements of changes in net
assets available for plan 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 net assets available for plan benefits of the Plan
at December 31, 1994 and 1993, and the changes in its net assets available
for plan benefits for the years then ended, in conformity with generally
accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental
schedules of assets held for investment purposes and reportable transactions,
as of and for the year ended December 31, 1994, 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 supplemental
schedules have been subjected to the auditing procedures applied in our audit
of the 1994 financial statements and, in our opinion, are fairly stated in
all material respects in relation to the 1994 basic financial statements
taken as a whole.
ERNST & YOUNG
Pittsburgh, Pennsylvania
June 15, 1995
4
PAGE 5
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1994
(Dollars In Thousands, Except for Share and Unit Amounts)
Investments (Notes 1, 2 and 3):
Fixed Income Fund, 6,448,435 units,
(participants' cost $556,114) unit value $86.240 .... $556,114
Fidelity Magellan Fund, 421,604 shares
(participants' cost $28,170), share value $66.80 ..... 28,163
Wells Fargo Asset Allocation Fund, 1,018,565 units
(participants' cost $10,604), unit value $11.23 ....... 11,438
E. I. DuPont de Nemours & Company Common Stock
3,079,369 shares (participants' cost $121,678)
share value $56.25 ................................... 173,214
ML Equity Index Trust CL A, 111,591 shares,
(participants' cost $2,968), share value $29.215 ...... 3,261
ML Global Holdings Fund CL A, 349,283 shares,
(participants' cost $4,423), share value $12.18 ...... 4,254
ML Balanced Fund for Investment & Retirement CL A,
136,293 shares, (participants' cost $1,618), share
value $10.19 ......................................... 1,389
ML Capital Fund CL A, 96,870 shares,
(participants' cost $2,604), share value $25.70 ...... 2,490
ML Basic Value Fund CL A, 111,016 shares,
(participants' cost $2,581), share value $22.35 ...... 2,481
Chrysler Corporation Common Stock, 7,002 shares
(participants' cost $106) share value $49.00 ......... 343
Loans to participants (principal balance) .............. 20,650
--------
Total Investments .................................. 803,797
Receivables (including $3,428 from CONSOL) .............. 3,501
Net Assets Available for Plan Benefits ............. $807,298
========
The accompanying notes are an integral part
of these financial statements.
5
PAGE 6
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF
CONSOL INC.
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1993
(Dollars In Thousands, Except for Share and Unit Amounts)
Investments (Notes 1, 2 and 3):
Fixed Income Fund, 6,545,989 units
(participants' cost $520,242), unit value $79.475.... $520,242
Fidelity Magellan Fund, 330,174 shares
(participants' cost $21,799), share value $70.85..... 23,393
Wells Fargo Asset Allocation Fund, 974,447 units
(participants' cost $9,952) unit value $11.49 ....... 11,196
E. I. DuPont de Nemours & Company Common Stock,
2,947,128 shares (participants' cost $103,182)
share value $48.25 .................................. 142,199
ML Equity Index Trust CL A, 105,488 shares,
(participants' cost $2,774), share value $28.92 ..... 3,051
ML Global Holdings Fund CL A, 309,571 shares,
(participants' cost $3,886), share value $13.14 ...... 4,068
ML Balanced Fund for Investment & Retirement CL A,
131,347 shares, (participants' cost $1,599), share
value $12.33 ......................................... 1,620
ML Capital Fund CL A, 81,433 shares,
(participants' cost $2,184), share value $27.97 ...... 2,278
ML Basic Value Fund CL A, 72,994 shares,
(participants' cost $1,691), share value $23.37 ...... 1,706
Chrysler Corporation Common Stock, 7,828 shares
(participants' cost $118) share value $53.25 ........ 417
Loans to participants (principal balance) ............. 16,799
--------
Total Investments ................................. 726,969
Receivables (including $3,301 from CONSOL) .............. 3,704
Net assets available for plan benefits ............ $730,673
========
The accompanying notes are an integral part
of these financial statements.
6
PAGE 7
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
YEAR ENDED DECEMBER 31, 1994
(Dollars in Thousands)
Fixed Fidelity Wells DuPont ML ML ML
Income Magellan Fargo Stock Equity Index Global Balanced
Fund Fund Fund Fund Trust Holdings Fund
========= ========== ========= ========== ============ ======== =========
Investment income $ 45,352 $ 1,103 $ 2 $ 5,026 $ 1 $ 170 $ 169
(dividends and interest)
Net realized and unrealized
appreciation (depreciation)
of investments - (1,505) (282) 24,045 30 (339) (275)
Deposits and withdrawals:
Employee deposits 12,062 1,606 647 5,783 111 258 83
Employer contributions 7,510 889 352 3,579 78 129 48
Rollover contributions 9,162 464 167 580 26 59 28
Employee withdrawals (35,798) (836) (158) (5,675) ( 86) (127) (71)
Transfers between investment
options (net) 735 2,680 (488) (2,665) (1) 2 (182)
Loan issues (8,170) (411) (228) (2,514) (13) (47) (57)
Loan repayments 3,751 486 194 2,087 52 67 20
Loan interest 809 95 34 512 12 14 6
Trust to Trust transfers 459 199 2 257 - - -
_________ _________ _________ _________ ________ ________ _______
Change in net assets available
for plan benefits for year 35,872 4,770 242 31,015 210 186 (231)
Net assets available for plan
benefits at beginning of year 520,242 23,393 11,196 142,199 3,051 4,068 1,620
_________ _________ _________ _________ ________ ________ _______
Net assets available for plan
benefits at end of year $556,114 $ 28,163 $ 11,438 $173,214 $ 3,261 $ 4,254 $1,389
========= ========= ========= ========= ======== ======== =======
The accompanying notes are an integral part of these financial statements.
Continued on next page 7
PAGE 8
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
YEAR ENDED DECEMBER 31, 1994 (Continued)
(Dollars in Thousands)
Cash Fund
ML ML Chrysler &
Capital Basic Value Stock Loan Pending Total
Fund Fund Fund Fund Settlement Receivables All Funds
======= =========== ======== ======== ========== =========== =========
Investment income $ 224 $ 164 $ 7 $ 1,529 $ - $ 19 $ 53,766
(dividends and interest)
Net realized and unrealized
appreciation (depreciation)
of investments (207) (123) (36) - - - 21,308
Deposits and withdrawals:
Employee deposits 161 178 - - - (12) 20,877
Employer contributions 93 108 - - - 14 12,800
Rollover contributions 31 81 - - - - 10,598
Employee withdrawals (33) (27) (33) (837) - - (43,681)
Transfers between investment
options (net) (65) 343 (12) - - (347) -
Loan issues (53) (67) - 11,560 - - -
Loan repayments 50 65 - (6,872) - 100 -
Loan interest 11 13 - (1,529) - 23 -
Trust to Trust transfers - 40 - - - - 957
________ ________ ______ ________ ______ ______ _________
Change in net assets available
for plan benefits for year 212 775 (74) 3,851 - (203) 76,625
Net assets available for plan
benefits at beginning of year 2,278 1,706 417 16,799 - 3,704 730,673
________ ________ ______ ________ ______ ______ _________
Net assets available for plan
benefits at end of year $ 2,490 $ 2,481 $ 343 $20,650 $ - $ 3,501 $807,298
======== ======== ====== ======== ====== ====== =========
The accompanying notes are an integral part of these financial statements.
8
PAGE 9
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
YEAR ENDED DECEMBER 31, 1993
(Dollars in Thousands)
Fixed Fidelity Wells DuPont ML ML ML
Income Magellan Fargo Stock Equity Index Global Balanced
Fund Fund Fund Fund Trust Holdings Fund
========= ========== ========= ========== ============ ======== =========
Investment income $ 42,626 $ 1,963 $ 1 $ 5,140 $ - $ 224 $ 188
(dividends and interest)
Net realized and unrealized
appreciation (depreciation)
of investments - 2,139 1,406 4,078 320 196 34
Deposits and withdrawals:
Employee deposits 10,417 1,045 537 5,711 107 98 62
Employer contributions 6,351 561 275 3,431 65 48 35
Rollover contributions 10,260 605 235 233 7 132 19
Employee withdrawals (25,801) (371) (213) (3,480) (170) ( 29) (12)
Transfers between investment
options (net) 5,183 (6,678) 107 (9,247) 2,790 3,430 1,335
Loan issues (6,970) (331) (133) (3,519) (115) (61) (66)
Loan repayments 2,492 264 84 1,562 39 24 19
Loan interest 558 51 21 393 8 6 6
Trust to Trust transfers 16,873 - - 142 - - -
_________ _________ _________ _________ ________ ________ _______
Change in net assets available
for plan benefits for year 61,989 (752) 2,320 4,444 3,051 4,068 1,620
Net assets available for plan
benefits at beginning of year 458,253 24,145 8,876 137,755 - - -
_________ _________ _________ _________ ________ ________ _______
Net assets available for plan
benefits at end of year $520,242 $ 23,393 $ 11,196 $142,199 $ 3,051 $ 4,068 $1,620
========= ========= ========= ========= ======== ======== =======
The accompanying notes are an integral part of these financial statements.
Continued on next page 9
PAGE 10
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
YEAR ENDED DECEMBER 31, 1993 (Continued)
(Dollars in Thousands)
Cash Fund
ML ML Chrysler &
Capital Basic Value Stock Loan Pending Total
Fund Fund Fund Fund Settlement Receivables All Funds
======= =========== ======== ======== ========== =========== =========
Investment income $ 140 $ 82 $ 4 $ 1,172 $ - $ 13 $51,553
(dividends and interest)
Net realized and unrealized
appreciation (depreciation)
of investments 118 66 175 - - - 8,532
Deposits and withdrawals:
Employee deposits 141 137 - - - 1,724 19,979
Employer contributions 74 63 - - - 1,050 11,953
Rollover contributions 40 138 - - - - 11,669
Employee withdrawals (32) (76) (18) (418) - - (30,620)
Transfers between investment
options (net) 1,785 1,287 (20) - (362) 390 -
Loan issues (37) (25) - 11,257 - - -
Loan repayments 42 27 - (4,965) - 412 -
Loan interest 7 7 - (1,172) - 115 -
Trust to Trust transfers - - - 844 - - 17,859
________ ________ ______ ________ ______ _______ _________
Change in net assets available
for plan benefits for year 2,278 1,706 141 6,718 (362) 3,704 90,925
Net assets available for plan
benefits at beginning of year - - 276 10,081 362 - 639,748
________ ________ ______ ________ ______ _______ _________
Net assets available for plan
benefits at end of year $ 2,278 $ 1,706 $ 417 $16,799 $ - $ 3,704 $730,673
======== ======== ====== ======== ====== ====== =========
The accompanying notes are an integral part of these financial statements.
10
PAGE 11
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL Inc.
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - DESCRIPTION OF THE INVESTMENT PLAN:
THE PLAN
The Investment Plan for Salaried Employees of CONSOL Inc. (the
"Plan") is a defined contribution plan established in 1953. Salaried,
operations and maintenance, and, in certain circumstances, production and
maintenance employees of CONSOL and participating employers are eligible to
participate in the Plan on the first of the month following regular full-time
employment. In addition, temporary employees are eligible to participate in
the plan upon completion of a period of 12 consecutive months, commencing
upon their employment date or anniversary date thereof, during which the
employee completes 1,000 or more hours of service. An eligible employee may,
with certain restrictions, contribute up to 16 percent of monthly base pay to
the Plan exclusive of supplemental make-up deposits. CONSOL and
participating employers match these contributions, dollar for dollar, up to 6
percent of base pay (as defined by the Plan). Forfeitures of company
matching contributions as a result of withdrawals by nonvested employees are
used to offset future company matching contributions. Contributions may be
made with before-tax or after-tax dollars. Nondis-crimination rules of the
Internal Revenue Code require that the average contribution rates in both the
before-tax and after-tax accounts of "Highly Compensated" employees (as
defined by the IRS) should be limited by the average contribution rates of
"Non-highly Compensated" employees. For the years ending December 31, 1994
and 1993, the after-tax contribution maximum including supplemental make-up
deposits was 19% and the before-tax contribution maximum was 15%. In
addition, subject to certain limitations, a participant is allowed to make
lump sum savings deposits in cash to the Plan at any time.
Plan participants generally become vested upon completion of five
consecutive years of participation in the Plan or five cumulative years of
service. Participants who retire from active service may elect to withdraw
their entire account in a lump sum, to defer withdrawal until April 1 of the
calendar year following the year in which the participant attains age 70
1/2, or to elect an irrevocable option to have their account distributed
over a period of not less than 2 years or more than a period which would pay
the account balance during the employee's actuarial life in either a fixed
or variable amount. Before-tax deposits may be withdrawn only in the event
of an employee's retirement, death, termination, attainment of age 59 1/2 or
defined hardship.
11
PAGE 12
The Tax Reform Act of 1986 (the "Act") included a number of pro-
visions affecting employee benefit plans that generally became effective on
or after January 1, 1987. The Plan was amended effective January 1, 1987,
to limit the amount of annual contributions an employee can make to his
before-tax account in accordance with limits established by the Act ($9,240
in 1994 and $8,994 in 1993); to provide for separation-from-service
distributions after age 55; and to modify the maximum loan amount and
definition of tax-free participant loans. It is CONSOL's intention to make
additional amendments to the Plan, where necessary, to comply with technical
corrections and Treasury Regulations that are issued under the Act.
Participants may borrow up to one-half of their nonforfeitable
account balances subject to certain minimum and maximum loan limitations.
Such loans are repayable over periods of 12 to 60 months (120 months maximum
if for the purchase of a principal residence) and bear an interest rate equal
to the average rate charged by selected major banks for secured personal
loans. A participant has the right to repay the loan in full at any time
without penalty.
INVESTMENT FUNDS
The following investment funds have been established with trustees
for the investment of employee savings and CONSOL's and participating
employers' contributions. The nature of the investments maintained in each
fund is described below:
Fixed Income Fund Investments under agreement with one or
more financial institutions, including
insurance companies, banks and other
investment companies which provide for the
return of principal in full plus the
payment of interest at a predetermined rate
for a specific period of time. The fund's
blended rate of return for the 12 months
ending December 31, 1994 and December 31,
1993 was 8.51% and 8.97%, respectively.
Fidelity Magellan Fund A growth mutual fund offered through
Fidelity Investments.
Wells Fargo Asset Allocation Fund Asset Allocation Fund with money invested
by Wells Fargo Nikko Investment Advisors
among stocks, bonds and cash (money
market).
DuPont Common Stock Fund Common stock of E. I. DuPont de Nemours and
Company ("DuPont"). DuPont owns 50% of the
stock of CONSOL Energy Inc., the parent of
CONSOL.
12
PAGE 13
Loan Fund Participant loans - amounts transferred
from the Fixed Income Fund, the Fidelity
Magellan Fund, Merrill Lynch Mutual Funds,
the DuPont Common Stock Fund and/or the
Wells Fargo Asset Allocation Fund that are
loaned to participants.
Merrill Lynch Mutual Funds A group of five different mutual funds
each with its own investment objective
offered through Merrill Lynch.
The shares of Chrysler Corporation Common Stock are held by some
CONSOL Plan participants who elected to exercise their right as Plan
participants to retain the stock as of September 15, 1966. This investment
option is no longer available to Plan participants.
At December 31, 1994, Plan participants were invested in the follow-
ing options (number of participants in each option): Du Pont Common Stock
(3,301); Fidelity Megallan Fund (1,153); Fixed Income Fund (5,897); Wells
Fargo Asset Allocation Fund (640); Merrill Lynch (ML) Global Holdings Fund
(338); ML Balanced Fund (153); ML Equity Index Trust (209); ML Capital Fund
(264); ML Basic Value Fund (235); Chrysler Corporation Common Stock (58) and
Participant Loans (2,075). The numbers reflect participation in multiple
options as permitted by the Plan.
ADMINISTRATION
The designated trustee of all the aforementioned funds is Merrill
Lynch Trust Company of America (Merrill Lynch). The administration of the
Plan is vested in the Board of Directors of CONSOL Inc. All recordkeeping
and trustee fees of the Plan are paid by CONSOL. The administrative fees for
the Fixed Income Fund are netted against the investment income of these
funds.
While CONSOL has not expressed any intent to terminate the Plan, it
is free to do so at any time. In the event of termination, each participant
automatically becomes vested to the extent of the balance in his or her
individual account.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
For financial reporting purposes, the assets of the Plan are
reflected on the accrual and fair value bases of accounting. The Fixed
Income Fund guaranteed investment contracts (GIC), separate account
portfolios (SAP) and synthetic guaranteed investment contracts (SYN) are
stated at cost plus accrued interest, using the contracted interest rates
applied to the daily account balances. Investments in the Fidelity Magellan
Fund, the DuPont Common Stock Fund, and Merrill Lynch Mutual Funds, except
for the Equity Index Fund, are stated at fair value based on publicly quoted
market prices. Investments in the Merrill Lynch Equity Index Fund and the
Wells Fargo Asset Allocation Fund are stated at the fair value of all
underlying assets as reported by the applicable custodian. The fair value
13
PAGE 14
of loans to participants in the Loan Fund represent the outstanding principal
balances of the loans.
The unit value or price of the Fixed Income Fund, the Wells Fargo
Asset Allocation Fund, Merrill Lynch Mutual Funds and the DuPont Common Stock
Fund, reflect the prices at which participant's accounts are valued at the
end of the period reported. There is no unit value for the Loan Fund since
loans are identified directly with participants' accounts.
Dividend income is recorded on the ex-dividend date and interest
income is recorded on the accrual basis. Gains and losses on the sale of the
DuPont Common Stock Fund investment securities are based on average cost of
the securities sold and are recognized on the trade date. Brokerage
commissions and Securities Exchange Commission fees in connection with the
purchase and sale of DuPont Common Stock and the sale of Chrysler Corporation
Common Stock are added to the cost thereof or deducted from the sales
proceeds derived therefrom.
NOTE 3 - INVESTMENTS
The following presents the Plan's investments:
December 31, 1994 December 31, 1993
Fixed Income (GIC, SAP, SYN).... $556,114 $520,242
DuPont Common Stock ............ 173,214 142,199
Fidelity Magellan Fund ......... 28,163 23,393
Wells Fargo Asset Allocation ... 11,438 11,196
Merrill Lynch Mutual Funds ..... 13,875 12,723
Chrysler Common Stock .......... 343 417
Loans to Participants .......... 20,650 16,799
-------- --------
Total Investments $803,797 $726,969
======== ========
The guaranteed investment contracts, synthetic guaranteed investment
contracts, and separate account guaranteed investment contracts in the Fixed
Income Fund are jointly owned by the Plan and the Thrift Plan for Employees
of Conoco Inc. Conoco Inc. is a wholly owned subsidiary of DuPont. The
balance of all investment contracts are allocated to the two plans by Merrill
Lynch based on the relationship of the plan's Fixed Income Fund participant
balances to total Fixed Income Fund participant balances. The investment
contracts are entered into based on an evaluation of the credit risk of the
contract issuers and/or third-party guarantors. Collateral is generally not
provided. The investment contracts and short-term investments of the Fixed
Income Fund consist of the following:
14
PAGE 15
Description December 31, 1994 December 31, 1993
----------- ----------------- -----------------
Aetna Life Insurance Company--9.01%, 6/1/01 ............... $ 29,145 $ 26,736
Aetna Life Insurance Company--9.32%, 6/1/99 ............... 29,865 30,354
Aetna Life Insurance Company--9.89%, 6/1/00 ............... 26,125 23,773
Bankers Trust--5.74%, 12/31/01 ............................ 26,261 24,818
Metropolitan Life Ins. Co.--7.26%, 6/30/01; 7.78%, 6/30/00. 53,401 49,667
New York Life Insurance Company--9.11%, 6/1/99 ............ 29,709 30,254
New York Life Insurance Company--9.71%, 6/1/99 ............ 30,611 31,002
Peoples Security Life Insurance Company, a member of the
Providian Capital Management Family--6.1%, 1/4/99 ....... 33,943 4,929
Principal Mutual Life Insurance Company--9.10%, 6/1/99 .... 28,757 29,287
Principal Mutual Life Insurance Company--9.50%, 6/1/98 .... 36,661 43,046
Provident National Assurance Company--9.52%, 6/30/95 ...... 1,362 3,629
Prudential Ins. Co. of America--7.10%,7/1/99; 7.02%,7/1/98. 50,572 47,237
Prudential Ins. Co. of America--8.35%,7/1/99; 8.87%,7/1/98. 50,195 46,217
Prudential Insurance Company of America--9.66%, 6/1/98 .... 36,989 43,368
Prudential Insurance Company of America--9.96%, 6/1/98 .... 37,626 43,995
Bankers Trust--7.67%, 12/31/25 9,977 -
The Travelers Insurance Companies--9.66%, 6/01/00 ......... 24,805 22,620
The Travelers Insurance Companies--10.13%, 12/31/94 ....... 2,105 2,380
Citibank 7.40%, 8/31/01 ................................... 12,407 -
-------- --------
Total Investment Contracts $550,516 $503,312
Short Term Investments (Merrill Lynch Government Fund) 5,598 16,930
TOTAL INVESTMENT IN FIXED INCOME $556,114 $520,242
======== ========
The carrying values and fair values of investment contracts as of
December 31, 1994 are as follows:
Carrying Value
(contract value) Fair Value
Guaranteed Investment Contracts $326,167 $342,827
Synthetic Guaranteed Investment Contracts 70,181 70,181
Separate Account Guaranteed Investment
Contracts 154,168 149,467
-------- ---------
$550,516 $562,475
======== =========
Included in the fair value of synthetic guaranteed investment
contracts is $5,373 related to wrapper contracts which guarantee the contract
value of the synthetic guaranteed investment contracts for participant-
initiated withdrawal events.
Participants investing in the Fixed Income Fund, Wells Fargo Asset
Allocation Fund and the Merrill Lynch Equity Index Trust are assigned units
at the time of investment based on the net asset value per unit. The
following table presents the number of units outstanding and related net
asset value per unit at each month-end.
15
PAGE 16
Wells Fargo Merrill Lynch
Fixed Income Fund Asset Allocation Fund Equity Index Trust _
Units Unit Units Unit Units Unit
Outstanding Value Outstanding Value Outstanding Value
January 31, 1994 6,595,268 $80.04 991,525 $11.84 105,281 $29.90
February 28, 1994 6,631,768 80.55 1,011,037 11.46 106,675 29.07
March 31, 1994 6,701,810 81.12 1,044.083 11.02 107,769 27.80
April 30, 1994 6,682,997 81.67 1,043,830 11.00 108,720 28.15
May 31, 1994 6,750,884 82.24 1,051,775 11.04 108,570 28.60
June 30, 1994 6,723,157 82.80 1,057,757 10.86 109,545 27.89
July 31, 1994 6,712,085 83.38 1,049,690 11.21 110,098 28.81
August 31, 1994 6,693,150 83.95 1,049,868 11.40 109,733 29.98
September 30, 1994 6,657,457 84.52 1,045,528 11.07 110,341 29.24
October 31, 1994 6,643,165 85.10 1,044,550 11.16 111,084 29.89
November 30, 1994 6,474,134 85.67 1,026,966 11.05 111,076 28.80
December 31, 1994 6,448,435 86.24 1,018,565 11.23 111,591 29.22
NOTE 4 - INCOME TAXES STATUS
The Plan received a favorable determination letter from the Internal
Revenue Service with respect to the 1994 amended plan. The Plan has been
amended to reflect changes required by the Tax Reform Act of 1986.
Management believes the Plan is qualified under Section 401(a) of the
Internal Revenue Code and therefore the trust is exempt from taxation
under Section 501(a).
Participants in the Plan are not subject to federal income taxes on
account balances arising from employer contributions, before-tax employee
deposits or accrued income until distributions or withdrawals are made.
NOTE 5 - ISLAND CREEK ACQUISITION
On July 1, 1993 CONSOL acquired Island Creek Coal, Inc. (Island
Creek) from a subsidiary of Occidental Petroleum Company. Island Creek
active employees participating in the Occidental Petroleum Corporation
Savings Plan were given the opportunity to make a one-time election for a
trust-to-trust transfer of their account to the Investment Plan for Salaried
Employees of CONSOL Inc. The 1993 trust-to-trust transfers included $16,522
which was invested in the Fixed Income Fund and $852 of outstanding
participants' loans.
NOTE 6 - RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for
benefits per the financial statements to the Form 5500:
16
PAGE 17
December 31,
1994 1993
-------------- --------------
(Dollars in Thousands)
Net assets available for benefits
per the financial statements $ 807,298 $ 730,673
Add: Amounts allocated to
withdrawing participants reported
as asset reductions per the
financial statements 652 1,032
Total Assets per the Form 5500: $ 807,950 $ 731,705
============= ============
Amounts payable to withdrawing participants are recorded on the Form 5500 for
benefit claims that have been processed and approved for payment prior to
December 31 but not yet paid as of that date. For financial statement
purposes the amounts were deducted from the respective assets.
NOTE 7 - STATEMENT OF POSITION 94-4
In 1994 the American Institute of Certified Public Accountants issued
Statement of Position (SOP) 94-4 "Reporting of Investment Contracts Held by
Health and Welfare Benefit Plans and Defined - Contribution Pension Plans".
The SOP is effective for financial statements for plan years beginning after
December 15, 1994, except that application of the SOP to investment contracts
entered into before December 31, 1993, is delayed to plan years beginning
after December 15, 1995. The provisions of the SOP require fully benefit
responsive investment contracts (as defined by the SOP) to be reported at
contract value and all other investment contracts to be reported at fair
value. Management believes all of the plan's investment contracts are fully
benefit responsive, therefore the effect of the SOP on the plan's financial
statements is expected to be limited to additional footnote disclosures.
17
PAGE 18
SCHEDULE I
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1994
(Dollars in Thousands)
- --------------------------------------------------------------------------------------------------------
Identity of Issue, Borrower Current
Lessor or Similar Party Description of Investment Cost Value
- --------------------------------------------------------------------------------------------------------
E. I. DuPont de Nemours & Company Common Stock $ 121,678 $ 173,214
========= =========
Merrill Lynch Equity Index Trust $ 2,968 $ 3,261
Global Holdings Fund 4,423 4,254
Balanced Fund 1,618 1,389
Capital Fund 2,604 2,490
Basic Value Fund 2,581 2,481
$ 14,194 $ 13,875
========= =========
Aetna Life Insurance Company GIC<Fa>, 9.01%, 6/1/01 $ 29,145
GIC<Fa>, 9.32%, 6/1/99 29,865
GIC<Fa>, 9.89%, 6/1/00 26,125
Banker's Trust SYNGIC<Fa>, 5.74%, 12/31/01 26,261
SYNGIC, 7.67%, 12/31/25 9,977
Metropolitan Life Insurance Company SAGIC<Fa>, 7.26%, 6/30/01 53,401
New York Life Insurance Company GIC<Fa>, 9.11%, 6/1/99 29,709
GIC<Fa>, 9.71%, 6/1/99 30,611
Peoples Security Life Insurance Company SYNGIC<Fa>, 6.1%, 1/4/99 33,943
Principal Mutual Life Insurance Company GIC<Fa>, 9.10%, 6/1/99 28,757
GIC<Fa>, 9.50%, 6/1/98 36,661
Provident National Assurance Company GIC<Fa>, 9.52%, 6/30/95 1,362
Prudential Insurance Company of
America SAGIC<Fa>, 7.10%, 7/1/99 50,572
SAGIC<Fa>, 8.35%, 7/1/99 50,195
GIC<Fa>, 9.66%, 6/1/98 36,989
GIC<Fa>, 9.96%, 6/1/98 37,626
The Travelers Insurance Companies GIC<Fa>, 9.66%, 6/01/00 24,805
GIC<Fa>, 10.13%, 12/31/94 2,105
Citibank GIC<Fa>, 7.40%, 8/31/01 12,407
Short Term Investments (Merrill Lynch
Government Fund) 5,598
________
Total $ 556,114 $ 556,114
========= =========
18
PAGE 19
SCHEDULE I
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES (Continued)
DECEMBER 31, 1994
(Dollars in Thousands)
- --------------------------------------------------------------------------------------------------------
Identity of Issue, Borrower Current
Lessor or Similar Party Description of Investment Cost Value
- --------------------------------------------------------------------------------------------------------
Chrysler Corporation Common Stock $ 106 $ 343
========= =========
Fidelity Investments Fidelity Magellan Fund $ 28,170 $ 28,163
========= =========
Wells Fargo Company Wells Fargo Asset Allocation Fund $ 10,604 $ 11,438
========= =========
Plan Participants Loans $ 20,650 $ 20,650
========= =========
__________________________________________
[FN]
<Fa>- GIC = Guaranteed Investment Contract
- SAGIC = Non-pooled Separate Account Guaranteed Investment Contract
- SYNGIC = Synthetic Guaranteed Investment Contract
19
PAGE 20
SCHEDULE II
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1994
(Dollars in Thousands)
________________________________________________________________________________________________________________________
Expense Current Value Net
Incurred Cost of Asset on Gain
Identity of Description Purchase Selling Lease with of Transaction or
Party Involved of Security Price Price Rental Transaction Asset Date Loss
____________________ _____________________ ________ ________ ______ ___________ ________ ___________ _____
Merrill Lynch ML Government Fund $252,123 $ 0 $ 0 $ 0 $252,123 $252,123 $ 0
ML Government Fund 0 215,340 0 0 215,340 215,340 0
Bankers Trust Company Policy #94-748 124,314 $ 0 0 0 124,314 124,314 0
Policy #94-748 0 83,275 0 0 83,725 83,725 0
Capital Holding
Providian BDA-00053-TR 147,252 0 0 0 147,252 147,252 0
BDA-00053-TR 0 33,381 0 0 33,381 33,381 0
Merrill Lynch E.I. DuPont de Nemours 48,816 0 0 0 48,816 48,816 0
& Company Stock Fund<Fa>
E. I. DuPont de Nemours
& Company Stock Fund<Fa> 0 41,866 0 0 30,340 41,866 11,526
[FN]
<Fa>Note - All of the above transactions except for the DuPont Stock Fund
represent transactions for the Conoco & Consol Plans on a
commingled basis.
20
PAGE 21
EXHIBIT INDEX
Exhibit
Number Description
------- -----------
24 Consent of Independent Auditors
21
PAGE 22
SIGNATURE
Exhibit 24
CONSENT OF INDEPENDENT AUDITORS
We hereby consent to the incorporation by reference in the
Prospectus constituting part of the Registration Statement on Form S-8
(No. 33-26216) of E. I. du Pont de Nemours and Company of our report dated
June 15, 1995 appearing on Page 4 of the Investment Plan for Salaried
Employees of CONSOL Inc. Annual Report on this Form 11-K for the year
ended December 31, 1994.
ERNST & YOUNG
Pittsburgh, Pennsylvania
June 26, 1995
22