PAGE 1
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1996
SAVINGS AND INVESTMENT PLAN
OF E. I. DU PONT DE NEMOURS AND COMPANY
(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)
============================================================
PAGE 2
INDEX
Page(s)
Report of Independent Accountants................. 4
Financial Statements:
Statements of Net Assets Available for Plan
Benefits, with Fund Information as of
September 30, 1996 and 1995....................... 5-8
Statements of Changes in Net Assets Available
for Plan Benefits, with Fund Information for
the Years Ended September 30, 1996 and 1995....... 9-12
Notes to Financial Statements..................... 13-20
Supplemental Schedules*:
Schedule I: Schedule of Assets Held for Investment
Purposes at September 30, 1996 .................... 21
Schedule II: Schedule of Reportable Transactions
for the Year Ended September 30, 1996.............. 22
EXHIBITS
Exhibit
Number Description
24 Consent of Independent Accountants.
*Other supplemental 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.
PAGE 3
Pursuant to the requirements of the Securities
and Exchange Act of 1934, E. I. du Pont de Nemours and
Company has duly caused this Annual Report to be signed by
the undersigned hereunto duly authorized.
Savings and Investment Plan of
E. I. du Pont de Nemours and Company
Date: February 27, 1997
By /s/ Kurt M. Landgraf
--------------------------------
Senior Vice President and
Chief Financial Officer
PAGE 4
REPORT OF INDEPENDENT ACCOUNTANTS
To the Participants and Administrator of the Savings and
Investment Plan of E. I. du Pont de Nemours and Company
In our opinion, the financial statements listed in the
accompanying index present fairly, in all material respects,
the net assets available for plan benefits of the Savings
and Investment Plan of E. I. du Pont de Nemours and Company
at September 30, 1996 and 1995, and the changes in net
assets available for plan benefits for the years then ended,
in conformity with generally accepted accounting principles.
These financial statements are the responsibility of the
Plan Administrator; 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 Plan
Administrator, and evaluating the overall financial
statement presentation. We believe that our audits provide
a reasonable basis for the opinion expressed above.
Our audits were performed for the purpose of forming an
opinion on the basic financial statements taken as a whole.
The additional information included in Schedules I and II is
presented for purposes of additional analysis and is not a
required part of the basic financial statements but is
additional information required by ERISA. The Fund
Information in the statements of net assets available for
benefits and the statements 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. Schedule I and II 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.
PRICE WATERHOUSE LLP
Philadelphia, Pennsylvania
January 10, 1997
PAGE 5
SAVINGS AND INVESTMENT PLAN
OF
E. I. DU PONT DE NEMOURS AND COMPANY
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
SEPTEMBER 30, 1996
(Dollars In Thousands, Except Unit or Share Values)
FUND INFORMATION
----------------------------------------------------------------------------------
3-Way Merrill
Fidelity Asset DuPont Lynch
Fixed Magellan Allocation Common Stock Loan Equity
Income Fund Fund Fund Fund Fund Index
------------- ----------- ---------- ------------- -------- --------
Investments, at fair value
(notes 1, 2 and 3)
DuPont Company common stock
(cost $521,554) ............. $1,159,506
Mutual Funds
(cost $810,162).............. $522,539
Common/Collective Trusts
(cost $373,311).............. $158,463 $379,297
Short-term investments & cash
(cost $42,465)................. $ 40,140 478 145 1,060 347
Loans to participants-
principal balance ........... $195,879
---------- -------- -------- ---------- -------- --------
40,140 523,017 158,608 1,160,566 195,879 379,644
Investments, at contract value
Fixed income fund
(contract value $5,733,798).. 5,733,798
---------- -------- -------- ---------- -------- --------
Total investments ........... 5,773,938 523,017 158,608 1,160,566 195,879 379,644
Receivables
Due from E. I. du Pont
de Nemours and Company....... 21,473 4,029 1,022 2,694 1,805
---------- -------- -------- ---------- -------- --------
Net assets available for plan
benefits .................... $5,795,411<Fa> $527,046<Fa> $159,630 $1,163,260<Fa> $195,879 $381,449
========== ======== ======== ========== ======== ========
Unit or share values (note 2) ... $93.11 $76.05 $15.39 $88.13 $45.41
========== ======== ======== ========== ========
<FN>
- ------------------
<Fa> Represents more than 5% of the net assets available for benefits.
The accompanying notes are an integral part of these financial statements.
Continued on next page
PAGE 6
SAVINGS AND INVESTMENT PLAN
OF
E. I. DU PONT DE NEMOURS AND COMPANY
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
SEPTEMBER 30, 1996 (Continued)
(Dollars In Thousands, Except Unit or Share Values)
FUND INFORMATION
Merrill
Merrill Merrill Lynch
Lynch Lynch Basic Total
Global Capital Value All
Holdings Fund Fund Funds
-------- -------- -------- -----------
Investments, at fair value
(notes 1, 2 and 3)
DuPont Company common stock
(cost $521,554) ............. $1,159,506
Mutual Funds
(Cost $810,162).............. $95,757 $103,724 $122,042 844,062
Common/Collective Trusts
(Cost $373,311).............. 537,760
Short-term investments & cash
(cost $42,465)................. 88 95 112 42,465
Loans to participants-
principal balance ........... 195,879
------- -------- -------- ----------
95,845 103,819 122,154 2,779,672
Investments, at Contract Value
Fixed income fund
(contract value $5,733,798).. 5,733,798
------- -------- -------- ----------
Total investments .......... 95,845 103,819 122,154 8,513,470
Receivables
Due from E. I. du Pont
de Nemours and Company....... 737 837 883 33,480
-------- -------- -------- ----------
Net assets available for plan
benefits .................... $96,582 $104,656 $123,037 $8,546,950
======= ======== ======== ==========
Unit or share values (note 2) ... $14.53 $30.51 $29.52
====== ====== ======
The accompanying notes are an integral part of these financial statements.
PAGE 7
SAVINGS AND INVESTMENT PLAN
OF
E. I. DU PONT DE NEMOURS AND COMPANY
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
SEPTEMBER 30, 1995
(Dollars In Thousands, Except Unit or Share Values)
FUND INFORMATION
--------------------------------------------------------------------------------
3-Way DuPont Merrill
Fidelity Asset Common Lynch
Fixed Income Magellan Allocation Stock Loan Equity
Fund Fund Fund Fund Fund Index
------------- ----------- ---------- ----------- -------- --------
Investments, at fair value
(notes 1, 2 and 3)
DuPont Company common stock
(cost $461,493) ............. $911,320
Mutual Funds
(cost $541,976).............. $465,326
Common/Collective Trusts
(cost $292,380).............. $133,165 $263,648
Short-term investments & cash
(cost $35,981)............... $ 34,700 302 86 590 170
Loans to participants-
principal balance ........... $185,287
---------- -------- -------- -------- -------- --------
34,700 465,628 133,251 911,910 185,287 263,818
Investments, at Contract Value
Fixed income fund
(contract value $5,507,691).. $5,507,691
---------- -------- -------- -------- -------- --------
Total investments .......... 5,542,391 465,628 133,251 911,910 185,287 263,818
Receivables
Due from E. I. du Pont
de Nemours and Company....... 22,899 3,605 943 1,941 1,139
---------- -------- -------- -------- -------- --------
Net assets available for plan
benefits .................... $5,565,290<Fa> $469,233<Fa> $134,194 $913,851<Fa> $185,287 $264,957
========== ======== ======== ======== ======== ========
Unit or share values (note 2) ... $86.30 $92.37 $13.86 $68.75 $37.84
========== ======== ======== ======== ========
<FN>
- ---------------------------
<Fa> Represents more than 5% of the net assets available for benefits.
The accompanying notes are an integral part of these financial statements.
Continued on next page
PAGE 8
SAVINGS AND INVESTMENT PLAN
OF
E. I. DU PONT DE NEMOURS AND COMPANY
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
SEPTEMBER 30, 1995 (Continued)
(Dollars In Thousands, Except Unit or Share Values)
FUND INFORMATION
Merrill
Merrill Merrill Merrill Lynch
Lynch Lynch Lynch Basic Total
Global Balanced Capital Value All
Holdings Fund Fund Fund Funds
-------- --------- -------- -------- -----------
Investments, at fair value
(notes 1, 2 and 3)
DuPont Company common stock
(cost $461,493) ............. $ 911,320
Mutual Funds
(cost $541,976).............. $64,762 $14,607 $64,440 $60,131 669,266
Common/Collective Trusts
(cost $292,380).............. 396,813
Short-term investments & cash
(cost $35,981)............... 42 10 42 39 35,981
Loans to participants-
principal balance ........... 185,287
------- ------- ------- ------- ----------
64,804 14,617 64,482 60.170 2.198,667
Investments, at Contract Value
Fixed income fund
(contract value $5,507,691).. 5,507,691
------- ------- ------- ------- ----------
Total investments .......... 64,804 14,617 64,482 60,170 7,706,358
Receivables
Due from E. I. du Pont
de Nemours and Company....... 581 157 612 499 32,376
-------- --------- -------- -------- ---------
Net assets available for plan
benefits .................... $65,385 $14,774 $65,094 $60,669 $7,738,734
======= ======== ======== ======== ===========
Unit or share values (note 2) ... $13.78 $11.56 $31.11 $27.54
====== ====== ====== ======
The accompanying notes are an integral part of these financial statements.
PAGE 9
SAVINGS AND INVESTMENT PLAN
OF
E. I. DU PONT DE NEMOURS AND COMPANY
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
FOR THE YEAR ENDED SEPTEMBER 30, 1996
(Dollars in Thousands)
FUND INFORMATION
3-Way DuPont Merrill
Fixed Fidelity Asset Common Lynch
Income Magellan Allocation Stock Loan Equity
Fund Fund Fund Fund Fund Index
----------- --------- ---------- --------- --------- -----------
Investment income
Interest ................... $ 426,351 $ 50 $ 14 $ 45 $ 15,786 $ 23
Dividends .................. 110,229 13 29,606 16
Distribution of loan
interest income .......... 11,402 1,517 363 1,259 (15,786) 592
Net realized gains (losses). 4,038 5,281 75,619 6,888
Net unrealized appreciation
(depreciation) in fair
value of investments ..... (98,055) 10,075 188,126 49,941
---------- ------- ------- -------- -------- ----------
Total investment income .. 437,753 17,779 15,746 294,655 0 57,460
Contributions
DuPont Company's contributions
(net of forfeitures applied
of $255).................. 47,885 8,263 2,112 5,719 2,970
Participants'............... 157,480 34,137 8,300 16,299 11,238
Rollovers................... 38,033 2,435 412 694 446
---------- -------- ------- -------- -------- ----------
681,151 62,614 26,570 317,367 0 72,114
---------- -------- ------- -------- -------- ----------
Withdrawals .................. (331,755) (20,637) (5,333) (33,275) (6,820) (9,262)
Net transfers among funds
Loans ...................... (72,593) (6,729) (1,882) (11,377) 98,085 (2,568)
Loan principal repayments... 57,415 8,468 1,895 6,439 (80,970) 3,166
Interfund transfers......... (112,870) 13,928 4,198 (30,422) 53,042
Assets transferred in......... 8,866 264
Affiliated company
transfers in (out), net .... (93) 169 (12) 677 33
---------- -------- ------- -------- -------- ----------
(451,030) (4,801) (1,134) (67,958) 10,592 44,378
---------- -------- ------- -------- -------- ----------
Net increase(decrease)...... 230,121 57,813 25,436 249,409 10,592 116,492
Net assets available
for plan benefits:
Beginning of year .......... 5,565,290 469,233 134,194 913,851 185,287 264,957
---------- -------- ------- -------- -------- ----------
End of year ................ $5,795,411 $527,046 $159,630 $1,163,260 $195,879 $381,449
========== ======== ======= ========== ======== ==========
The accompanying notes are an integral part of these financial statements.
Continued on next page
PAGE 10
SAVINGS AND INVESTMENT PLAN
OF
E. I. DU PONT DE NEMOURS AND COMPANY
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
FOR THE YEAR ENDED SEPTEMBER 30, 1996 (Continued)
(Dollars in Thousands)
FUND INFORMATION
Merrill
Merrill Merrill Merrill Lynch
Lynch Lynch Lynch Basic Total
Global Balanced Capital Value All
Holdings Fund Fund Fund Funds
--------- ---------- --------- --------- -----------
Investment income
Interest ................ $ 8 $ 1 $ 10 $ 8 $442,296
Dividends ............... 3,538 1,137 11,508 7,149 163,196
Distribution of Loan
interest income ....... 197 14 226 216
Net realized gains(losses) 933 (133) 971 1,413 95,010
Net unrealized appre-
ciation (depreciation)
in fair value of
investments ........... 4003 (2,536) 2,904 154,458
------- -------- -------- ------- --------
Total investment
income .............. 8,679 1,019 10,179 11,690 854,960
Contributions
DuPont Company's
contributions (net of
forfeitures applied
of $255) .............. 1,307 115 1,601 1,418 71,390
Participants'............ 5,568 420 6,570 6,117 246,129
Rollovers................ 102 66 302 334 42,824
------- ----------- --------- -------- -----------
15,656 1,620 18,652 19,559 1.215,303
------- ----------- --------- -------- -----------
Withdrawals ............... (2,496) (241) (3,901) (3,203) (416,923)
Net transfers among funds
Loans ................... (875) (147) (1,107) (807)
Loan principal repayments 1,076 69 1,214 1,228
Interfund transfers...... 17,869 (16,075) 24,735 45,595
Assets transferred in...... 9,130
Affiliated company
transfers in (out), net.. (33) (31) (4) 706
------- ------- -------- ------- ----------
15,541 (16,394) 20,910 42,809 (407,087)
------- ------- -------- ------- ----------
Net increase (decrease).... 31,197 (14,774) 39,562 62,368 808,216
Net assets available
for plan benefits:
Beginning of year ....... 65,385 14,774 65,094 60,669 7,738,734
------- -------- -------- -------- ----------
End of year ............. $96,582 $ 0 $104,656 $123,037 $8,546,950
======= ======== ======== ======== ==========
The accompanying notes are an integral part of these financial statements.
PAGE 11
SAVINGS AND INVESTMENT PLAN
OF
E. I. DU PONT DE NEMOURS AND COMPANY
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
FOR THE YEAR ENDED SEPTEMBER 30, 1995
(Dollars in Thousands)
FUND INFORMATION
3-Way DuPont Merrill
Fixed Fidelity Asset Common Lynch
Income Magellan Allocation Stock Loan Equity
Fund Fund Fund Fund Fund Index
------- --------- --------- --------- --------- --------
Investment income
Interest ................. $424,680 $ 38 $ 12 $ 47 $14,289 $ 18
Dividends ................ 1,578 24,198
Distribution of loan
interest income ........ 11,219 1,061 279 746 (14,289) 475
Net realized gains (losses) 9,320 2,589 39,591 3,735
Net unrealized appre-
ciation
in fair value of
investments ............ 110,579 23,290 180,824 55,238
-------- -------- -------- -------- ------- -------
Total investment
income ............... 435,899 122,576 26,170 245,406 0 59,466
Contributions
DuPont Company's
contributions (net of
forfeitures applied
of $286) ............... 51,396 6,417 1,863 3,832 2,184
Participants'............. 148,858 26,177 7,166 10,666 7,629
Rollovers................. 49,763 361 365 35,403 109
--------- ---------- ------- -------- -------- --------
685,916 155,531 35,564 295,307 0 69,388
--------- ---------- ------- -------- -------- --------
Withdrawals................. (250,037) (9,727) (2,809) (25,764) (6,061) (7,877)
Net transfers among funds
Loans .................... (76,484) (5,583) (1,692) (10,549) 99,180 (2,329)
Loan principal repayments. 56,081 5,608 1,395 3,937 (72,196) 2,431
Interfund transfers....... (13,001) (4,516) (4,433) 30,781 941
Affiliated company
transfers in (out), net... (113) 107 45 172 87 1
---------- --------- ------- -------- -------- --------
(283,554) (14,111) (7,494) (1,423) 21,010 (6,833)
---------- --------- ------- -------- -------- --------
Net increase(decrease).... 402,362 141,420 28,070 293,884 21,010 62,555
Net assets available
for plan benefits:
Beginning of year ........ 5,162,928 327,813 106,124 619,967 164,277 202,402
---------- -------- -------- -------- -------- ---------
End of year ..............$5,565,290 $469,233 $134,194 $913,851 $185,287 $264,957
========== ======== ======== ======== ======== =========
The accompanying notes are an integral part of these financial statements.
Continued on next page
PAGE 12
SAVINGS AND INVESTMENT PLAN
OF
E. I. DU PONT DE NEMOURS AND COMPANY
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
FOR THE YEAR ENDED SEPTEMBER 30, 1995 (Continued)
(Dollars in Thousands)
FUND INFORMATION
Merrill
Merrill Merrill Merrill Lynch
Lynch Lynch Lynch Basic Total
Global Balanced Capital Value All
Holdings Fund Fund Fund Funds
--------- --------- --------- -------- ------------
Investment income
Interest ................. $ 6 $ 2 $ 7 $ 5 $ 439,104
Dividends ................ 2,706 1,816 3,613 2,044 35,955
Distribution of Loan
interest income ........ 185 49 146 129
Net realized gains (losses) (269) (610) 287 607 55,250
Net unrealized appre-
ciation
in fair value of
investments............. 2,313 459 7,124 8,141 387,968
-------- --------- -------- ------- ----------
Total investment
income ............... 4,941 1,716 11,177 10,926 918,277
Contributions
DuPont Company's
contributions (net of
forfeitures applied
of $286) ............... 1,251 375 1,189 883 69,390
Participants'............. 5,312 1,411 4,888 3,649 215,756
Rollovers................. 101 28 138 64 86,332
------- ----------- --------- -------- -----------
11,605 3,530 17,392 15,522 1,289,755
------- ----------- --------- -------- -----------
Withdrawals ................ (1,829) (713) (1,647) (1,847) (308,311)
Net transfers among funds
Loans .................... (855) (273) (799) (616)
Loan principal repayments 1,017 263 715 749
Interfund transfers....... (13,701) (4,164) 3,558 4,535
Affiliated company
transfers in (out), net... 17 (181) 24 10 169
------- ---------- --------- -------- -----------
(15,351) (5,068) 1,851 2,831 (308,142)
------- ----------- --------- -------- -----------
Net increase(decrease)... (3,746) (1,538) 19,243 18,353 981,613
Net assets available
for plan benefits:
Beginning of year ........ 69,131 16,312 45,851 42,316 6,757,121
------- ----------- --------- -------- -----------
End of year .............. $65,385 $14,774 $65,094 $60,669 $7,738,734
======= =========== ========= ======== ===========
The accompanying notes are an integral part of these financial statements.
PAGE 13
SAVINGS AND INVESTMENT PLAN
OF
E. I. DU PONT DE NEMOURS AND COMPANY (THE "COMPANY")
NOTES TO FINANCIAL STATEMENTS
NOTE 1 -- DESCRIPTION OF SAVINGS AND INVESTMENT PLAN:
THE PLAN
The following description of the Savings and Investment Plan of
E. I. duPont de Nemours and Company (Plan) provides only general information.
Participants should refer to the Plan agreement for a more comprehensive
description of the Plan's provisions.
The Plan is a defined contribution plan which was established by
the Company's Board of Directors and became effective September 1, 1955. The
Plan is subject to the provisions of the Employee Retirement Income Security
Act of 1974 and the Internal Revenue Code.
The purpose of the Plan is to encourage and assist employees in
following a systematic savings program suited to their individual objectives,
and to provide an opportunity for employees to become stockholders of the
Company. The Plan is a tax qualified contributory profit sharing plan. Any
employee of the Company or its subsidiaries (including Du Pont Merck
Pharmaceutical Company (Dupont Merck) and DuPont-Dow Elastomers, general
partnerships which have adopted the Plan) who has completed at least one year
of continuous service, as determined in accordance with the Company's service
rules, or who has been compensated for 1,000 or more hours in a period of
twelve consecutive months is eligible to participate in the Plan.
An eligible employee may authorize the Company to make a payroll
deduction under the Plan ranging from 1% to 22% of monthly pay. The amount
deducted can be deposited into a before-tax or after-tax account or some
combination thereof. Any amounts in excess of 16% are considered to be
cash supplemental deposits and must be deposited in the after-tax account.
The Company will contribute an amount equal to 50% of the participant's
savings deductions during a month except that no company contribution will be
made for any participant's savings in excess of 6% of monthly pay. In
addition, subject to certain limitations, a participant is allowed to make
lump sum savings deposits in cash or through payroll deduction to the Plan at
any time.
A participant with less than five years of service who withdraws
any matched before-tax or after-tax savings will forfeit a portion of related
company contributions in accordance with specific plan provisions. Company
contributions will be suspended for six months if a participant withdraws any
PAGE 14
SAVINGS AND INVESTMENT PLAN
OF
E. I. DU PONT DE NEMOURS AND COMPANY (THE "COMPANY")
NOTES TO FINANCIAL STATEMENTS - (Continued)
matched before-tax or after-tax savings or company contributions contributed
to the account during the last two years of participation. A participant who
retires from active service may elect to make an account withdrawal at any
time. Required minimum distribution will begin in March of the calendar year
following the year in which the participant attains age 70-1/2.
Participants may borrow up to one-half of their nonforfeitable
account balances subject to certain minimum and maximum loan limitations.
The loans are executed by promissory notes and have a minimum term of 12
months and a maximum term of 60 months, except for qualified residential
loans which have a maximum term of 120 months. The loans bear an interest
rate equal to the average rate charged by selected major banks to prime
customers for secured loans. The loans are repaid over the term in monthly
installments of principal and interest by payroll deduction. A participant
also has the right to repay the loan in full at any time without penalty.
INVESTMENT FUNDS
The following investment funds have been established for the
investment of employee savings and company 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.
Fidelity Magellan Fund -- A growth mutual fund offered through Fidelity
Investments Institutional Operations Company.
PAGE 15
SAVINGS AND INVESTMENT PLAN
OF
E. I. DU PONT DE NEMOURS AND COMPANY (THE "COMPANY")
NOTES TO FINANCIAL STATEMENTS - (Continued)
3-Way Asset Allocation Fund -- 3-Way Asset Allocation Fund with money
invested by BZW Global Investors
among stocks, bonds, and cash
(money market).
DuPont Common Stock Fund -- DuPont common stock.
Loan Fund -- Participant loans--amounts transferred from
other funds that are loaned to participants.
Merrill Lynch Funds -- Prior to March 1, 1996, a group of 5
different mutual funds each with its own
investment objective offered through Merrill
Lynch. On March 1, 1996, Merrill Lynch
merged the Balanced Fund into the Global
Holdings Fund; thereby, eliminating the
Balanced Fund from Merrill Lynch's investment
line-up. Prior to the merger, participants
were permitted to transfer their Balanced
Fund holding to any of the other investment
options available in the Plan. At the
discretion of the Administrator, the Plan's
position remaining in the Balanced Fund,
immediately prior to the merger, was
converted to the Merrill Lynch Capital Fund.
Participants may allocate their before and after-tax savings
deductions and company contributions among all funds at their discretion.
Assets transferred in represent transfers resulting from the
DuPont-Dow Elastomers joint venture. Affiliated company transfers in (out)
represent the net movement of participant account balances between the Plan
and other Company sponsored defined contribution benefit plans.
PAGE 16
SAVINGS AND INVESTMENT PLAN
OF
E. I. DU PONT DE NEMOURS AND COMPANY (THE "COMPANY")
NOTES TO FINANCIAL STATEMENTS - (Continued)
ADMINISTRATION
The designated trustee of the Plan is Merrill Lynch Trust Company
of America (Merrill Lynch). The administration of the Plan is vested in the
Company which may designate one or more persons to operate and administer the
Plan. The Company has the responsibility of appointing the trustees and the
Vice President, Pension Fund Investment, has the authority to designate the
Plan's investment options. All recordkeeping and trustee fees of the Plan
are paid by the Company. Brokerage fees, transfer taxes, investment fees and
other expenses incident to the purchase and sale of securities and
investments in the Fixed Income Fund, Fidelity Magellan Fund, DuPont Common
Stock Fund, 3-Way Asset Allocation Fund, and Merrill Lynch Funds shall be
included in the cost of such securities or investments, or deducted from the
sales proceeds, as the case may be.
While the Company has not expressed any intent to terminate the
Plan, it is free to do so at any time. In the event the Plan is terminated,
all participants become vested and the distribution of all account balances
will be made based upon the valuation of the participant's account on the
termination date.
NOTE 2 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENT VALUATION AND INCOME RECOGNITION
The accompanying financial statements are prepared on the accrual
basis of accounting. The Plan's investments are stated at fair value, except
for the Fixed Income Fund, which is valued at contract value. The Fixed
Income Fund guaranteed investment contracts, separate account portfolios and
synthetic guaranteed investment contracts are fully benefit responsive and
thus, are stated at cost plus accrued interest, using the contracted interest
rates applied to the daily account balances. Mutual funds are valued at
quoted market prices which represents the net asset value of shares held by
the Plan at year-end. Commom/Collective Trust Funds are stated at the fair
value of all underlying assets as reported by the applicable custodian.
Loans to participants, short-term investments, and cash are valued at cost
which approximates fair value. Common stock is valued at its quoted market
price at year-end.
PAGE 17
SAVINGS AND INVESTMENT PLAN
OF
E. I. DU PONT DE NEMOURS AND COMPANY (THE "COMPANY")
NOTES TO FINANCIAL STATEMENTS - (Continued)
The Company may, at its option, issue DuPont common stock in lieu of cash
contributions to the DuPont Common Stock Fund and also in lieu of cash
dividends on DuPont common stock. The number of shares issued is based upon
the cash value of the contributions and dividends divided by the market value
of DuPont common stock at the end of the month of issue. Shares of DuPont
common stock are allocated to participants in the DuPont Common Stock Fund
based on the ratio of the amount deposited to each participant's account to
the total amount contributed to the Fund.
Dividend income is recorded on the ex-dividend date and interest
income is recorded when earned. Realized gains and losses on the sale of
the DuPont Common Stock Fund investment securities are based on average
cost of the securities sold. Purchases and sales are recorded on a trade
date basis.
USE OF ESTIMATES
The preparation of financial statements in conformity with
generally accepted accounting principles requires the Plan Administrator to
make estimates and assumptions that affect the reported amounts in the
financial statements. Actual results could differ from those estimates.
RECLASSIFICATIONS
Certain reclassifications have been made from the prior year to
conform to the current year presentation.
PAGE 18
SAVINGS AND INVESTMENT PLAN
OF
E. I. DU PONT DE NEMOURS AND COMPANY (THE "COMPANY")
NOTES TO FINANCIAL STATEMENTS - (Continued)
NOTE 3 -- INVESTMENTS
The Fixed Income Fund consists of guaranteed investment contracts
(GIC), separate account portfolios (SAP) and synthetic guaranteed investment
contracts (SYN). The crediting interest rates ranged from 5.38% to 10.65% for
the year ended September 30, 1996 and from 5.38% to 11.27% for the year
ended September 30, 1995. The fund's blended rate of return for the year was
7.9% in 1996 and 8.2% in 1995.
The crediting rates for SAP and SYN contracts are reset annually
and are based on the market value of the underlying portfolio of assets
backing these contracts. Inputs used to determine the crediting rate include
each contract's portfolio market value, current yield-to-maturity, duration
(i.e., weighted average life), and market value relative to contract value.
All contracts have a guaranteed rate of 0% or higher.
The contract values and fair values of investment contracts as of
September 30, 1996 are as follows:
Contract Value Fair Value
(Dollars in Thousands)
Guaranteed Investment Contracts $1,999,573 $2,067,746
Synthetic Guaranteed Investment Contracts 2,447,719 2,447,719
Separate Account Guaranteed Investment 1,286,506 1,284,766
Contracts
$5,733,798 $5,800,231
========== ==========
Included in the fair value of synthetic guaranteed investment
contracts is $(28,180) related to wrapper contracts which guarantee the
contract value of the synthetic guaranteed investment contracts for
participant-initiated withdrawal events.
PAGE 19
SAVINGS AND INVESTMENT PLAN
OF
E. I. DU PONT DE NEMOURS AND COMPANY (THE "COMPANY")
NOTES TO FINANCIAL STATEMENTS - (Continued)
NOTE 4 -- REALIZED AND UNREALIZED GAINS AND LOSSES
Realized and unrealized gains and losses are calculated based upon
historical cost of assets. Such gains and losses are computed on a current
value basis for Form 5500. The difference may result in a differing classi-
fication between realized and unrealized but the total gain or loss will be
unaffected.
NOTE 5 -- INCOME TAX STATUS
The Savings and Investment Plan is a qualified plan pursuant to
Section 401(a) of the Internal Revenue Code and the related Trusts are
exempt from federal taxation under Section 501(a) of the Code. A favor-
able tax determination letter dated October 26, 1995 has been received by the
Plan. Accordingly, no provision has been made for federal income taxes in
the accompanying financial statements.
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:
September 30,
1996 1995
----------- -----------
(Dollars in Thousands)
Net assets for benefits per the
financial statements $8,546,950 $7,738,734
Less: Amounts allocated to withdrawing
participants (4,988) (3,978)
----------- -----------
Net assets available for benefits per
the Form 5500: $8,541,962 $7,734,756
=========== ===========
PAGE 20
SAVINGS AND INVESTMENT PLAN
OF
E. I. DU PONT DE NEMOURS AND COMPANY (THE "COMPANY")
NOTES TO FINANCIAL STATEMENTS - (Continued)
The following is a reconciliation of benefits paid to participants per the
financial statements to the Form 5500:
Year ended
September 30, 1996
----------------------
(Dollars in Thousands)
Benefits paid to participants per the financial
statements $416,923
Add: Amounts allocated to withdrawing participants
at September 30, 1996 4,988
Less: Amounts allocated to withdrawing participants
at September 30, 1995 (3,978)
------------
Benefits paid to participants per the Form 5500 $417,933
============
Amounts allocated to withdrawing participants are recorded on the Form
5500 for benefit claims that have been processed and approved for payment
prior to September 30 but not yet paid as of that date.
NOTE 7 -- RELATED PARTY TRANSACTIONS
Certain Plan investments are shares of mutual funds managed by the
Trustee. Therefore, transactions in these investments qualify as
party-in-interest transactions which are exempt from the prohibited
transaction rules.
NOTE 8 -- SUBSEQUENT EVENTS
On January 1, 1997, the maximum allowable saving rate will increase
to 17% for the Before-tax account and 22% for the After-tax
account.
During 1996, the sale of the Diagnostic Imaging Business was
finalized with the Sterling Group Inc., the In-Vitro Diagnostics
business was sold to Dade International Inc., and the DuPont
Sorvall Centrifuge business was sold to First Chicago Equity
Capital. Participants employed in the former Medical Products
businesses that were divested were permitted to continue to make
contributions from the sale dates until December 31, 1996.
Effective December 31, 1996, participants employed in the
businesses that were divested will no longer participate in
the Plan. Contribution from the sale dates to December 31, 1996
and earnings on those contributions will be transferred out
of the Plan by January 31, 1997.
PAGE 21 SCHEDULE I
SAVINGS AND INVESTMENT PLAN
OF
E. I. DU PONT DE NEMOURS AND COMPANY (THE "COMPANY")
ITEM 27A-SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
SEPTEMBER 30, 1996
Current
Description Cost Value
(Dollars in Thousands)
Aetna Life Insurance Company--7.73%, 1/2/01 (SAP) ............ $ 194,800 $ 194,800
Aetna Life Insurance Company--7.18%, 1/2/01 (SAP) ............ 114,767 114,767
Aetna Life Insurance Company--8.73%, 12/1/96 (GIC) ............ 13,728 13,728
Aetna Life Insurance Company--8.88%, 12/1/96 (GIC) ............ 13,976 13,976
Aetna Life Insurance Company--8.52%, 12/1/96 (GIC) ............ 13,413 13,413
Aetna Life Insurance Company--9.71%, 12/1/98 (GIC) ............ 92,744 92,744
Aetna Life Insurance Company--9.48%, 12/1/98 (GIC) ............ 91,336 91,336
Aetna Life Insurance Company--8.90%, 12/1/99 (GIC)............. 102,071 102,071
Aetna Life Insurance Company--8.89%, 12/1/00 (GIC)............. 104,318 104,318
Allstate Life Insurance Company--8.50%, 12/1/01 (GIC) ......... 141,612 141,612
Bankers Trust--6.549%, 08/30/02 (SYN) ......................... 221,641 221,641
Bankers Trust--7.569%, Evergreen (SYN) ........................ 254,865 254,865
CDC--7.11%, 10/1/02 (SYN)...................................... 101,103 101,103
CDC--6.99%, 10/1/02 (SYN)...................................... 50,028 50,028
CDC--7.2%, 10/1/02 (SYN)....................................... 50,258 50,258
Citibank--5.38%, 9/1/00 (SYN) ................................. 175,362 175,362
Citibank--7.45%, 08/31/01 (SYN) ............................... 58,641 58,641
John Hancock Mutual Life Insurance Company--
9.4%, 12/1/98 (GIC) ......................................... 90,845 90,845
John Hancock Mutual Life Insurance Company--
9.0%, 12/1/99 (GIC) ......................................... 102,656 102,656
John Hancock Mutual Life Insurance Company--8.89%, 12/1/99 (GIC). 102,009 102,009
John Hancock Mutual Life Insurance Company--8.31%, 12/3/01 (GIC). 94,090 94,090
John Hancock Mutual Life Insurance Company--6.57%, 1/2/99 (SAP).. 179,786 179,786
Massachusetts Mutual Life Insurance Company--9.15%, 12/1/00 (GIC) 102,278 102,278
Metropolitan Life Insurance Company--9.64%, 12/1/98, (GIC) ...... 92,308 92,308
Metropolitan Life Insurance Company--7.31%, Evergreen (SAP) ..... 135,253 135,253
J. P. Morgan--6.62%, Evergreen (SYN) ............................ 245,949 245,949
J. P. Morgan--6.302%, Evergreen (SYN) ........................... 274,052 274,052
New York Life Insurance Company--10.15%, 12/1/97 (GIC) .......... 57,356 57,356
New York Life Insurance Company--9.75%, 12/1/97 (GIC) ........... 55,661 55,661
New York Life Insurance Company--9.36%, 12/1/98 (GIC) ........... 90,608 90,608
New York Life Insurance Company--9.66%, 12/1/98 (GIC) ........... 27,670 27,670
New York Life Insurance Company--9.27%, 12/01/00 (GIC) .......... 86,745 86,745
New York Life Insurance Company--7.25%, 12/1/01 (SAP) ........... 114,920 114,920
New York Life Insurance Company--7.17%, 12/1/01 (SAP) ........... 156,557 156,557
New York Life Insurance Company--6.23%, 12/1/01 (SAP) ........... 155,687 155,687
Peoples Security Life Insurance Company, a Member of the
Capital Holdings Family--7.345%, 1/1/01 (SYN) ................ 266,839 266,839
Peoples Security Life Insurance Company, a Member of the
Capital Holdings Family--6.756%, 1/1/01 (SYN) ................ 228,331 228,331
Prudential Life Insurance Company--10.65%, 12/1/97 (GIC) ........ 59,524 59,524
Prudential Life Insurance Company--8.97%, 12/1/99 (GIC) ......... 106,577 106,577
Prudential Life Insurance Company-- 9.6%, 12/1/00 (GIC) ......... 90,241 90,241
Prudential Life Insurance Company--8.08%, 7/1/01 (SAP) ......... 116,781 116,781
Prudential Life Insurance Company--7.71%, 1/1/01 (SAP) .......... 117,955 117,955
Prudential Life Insurance Company--9.01%, 12/1/99 (GIC) ......... 106,821 106,821
Travelers Life Insurance Company--10.17%, 12/1/97 (GIC) ......... 57,444 57,444
Travelers Life Insurance Company--9.15%, 12/1/99 (GIC) .......... 103,542 103,542
Union Bank of Switzerland--7.57%, Evergreen (SYN) ............... 268,240 268,240
Welington Management Company--6.516%, Evergreen (SYN)............ 252,410 252,410
---------- ---------
Total GIC, SAP and SYN........................................ 5,733,798 5,733,798
========== =========
Fidelity Magellan Fund........................................... 512,985 522,539
3-Way Asset Allocation Fund...................................... 119,134 158,463
DuPont Common Stock.............................................. 521,554 1,159,506
Loans to Participants (8.0% - 8.5%).............................. 195,879 195,879
Short Term Investments and Cash.................................. 42,465 42,465
Merrill Lynch Equity Index....................................... 254,177 379,297
Merrill Lynch Global Holdings.................................... 87,066 95,757
Merrill Lunch Capital Fund....................................... 98,823 103,724
Merrill Lunch Basic Value Fund................................... 111,238 122,042
--------- ---------
Total Investment Portfolio $7,677,169 $8,513,470
========== ==========
GIC Guaranteed Investment Contract
SAP Separate Account Portfolio
SYN Synthetic Guaranteed Investment Contract
PAGE 22
SAVINGS AND INVESTMENT PLAN
OF
E.I. DUPONT DE NEMOURS AND COMPANY
SCHEDULE II ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED SEPTEMBER 30, 1996
(DOLLARS IN THOUSANDS)
Transactions or Series of Transactions in Excess
of 5% of Current Value of Plan Assets as of October 1, 1995
Contract Current
Value/ Value on
Identity Description Purchase Sale Cost of Transaction Gain on
of Party of Asset Price Price Asset Date Transaction
- -------- ----------- -------- ----- -------- ---------- -----------
JP Morgan SYN $317,873 $317,873 $317,873
JP Morgan SYN $144,435 144,435 144,435 -
DuPont Common Stock 347,558 347,558 347,558
DuPont Common Stock 360,822 285,203 360,822 $75,619
Fidelity Magellan Fund 354,307 354,307 354,307
Fidelity Magellan Fund 203,252 199,214 203,252 4,038
Page 23
EXHIBIT INDEX
Exhibit
Number Description
24 Consent of Independent Accountants.
PAGE 24
Exhibit 24
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the
Registration Statement on Form S-8 (No. 33-36339) of
E. I. du Pont de Nemours and Company of our report dated
January 10,1997, which appears on page 4 of this Form 11-K.
PRICE WATERHOUSE LLP
Philadelphia, Pennsylvania
February 27, 1997