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, 1996
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, 1996 and 1995 ....................
Statements of Changes in Net Assets Available 7 - 10
for Plan Benefits for the Years Ended December 31,
1996 and 1995 .............................................
Notes to Financial Statements ............................... 11 - 17
Additional Information:
Schedule of Assets Held for Investment Purposes at
December 31, 1996 (Schedule I) ............................ 18 - 19
Schedule of Reportable Transactions for the
Year Ended December 31, 1996 (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 23, 1997
/s/Karen L. Musial
________________________________
Karen L. Musial
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, 1996 and 1995, 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, 1996 and 1995, 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 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 and reportable transactions,
as of and for the year ended December 31, 1996, 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 1996 financial statements and, in our opinion, are fairly stated in
all material respects in relation to the 1996 basic financial statements
taken as a whole.
ERNST & YOUNG, LLP
Pittsburgh, Pennsylvania
June 6, 1997
4
PAGE 5
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF
CONSOL INC.
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1996
(Dollars In Thousands, Except for Share and Unit Amounts)
Investments (Notes 1, 2 and 3):
Fixed Income Fund, 6,451,787 units
(participants' cost $651,152), unit value $100.926... $651,152
Fidelity Magellan Fund, 496,849 shares
(participants' cost $36,566), share value $80.650.... 40,071
Barclays 3-Way Fund, 1,066,933 units,
(participants' cost $12,247) unit value $16.370...... 17,466
E. I. DuPont de Nemours & Company Common Stock,
2,647,302 shares (participants' cost $127,200)
share value $94.125.................................. 249,177
ML Equity Index Trust CL A, 222,460 shares,
(participants' cost $8,282), share value $49.161..... 10,936
ML Global Holdings Fund CL A, 374,467 shares,
(participants' cost $4,966), share value $14.080..... 5,272
ML Capital Fund CL A, 174,289 shares,
(participants' cost $5,091), share value $31.050..... 5,412
ML Basic Value Fund CL A, 193,281 shares,
(participants' cost $5,214), share value $31.000..... 5,992
Chrysler Corporation Common Stock, 11,188 shares
(participants' cost $84) share value $33.000......... 369
Loans to participants (principal balance) ............. 22,157
----------
Total Investments ................................. $1,008,004
Receivables (including $3,251 from CONSOL) .............. 3,516
----------
Net assets available for plan benefits ............ $1,011,520
==========
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, 1995
(Dollars In Thousands, Except for Share and Unit Amounts)
Investments (Notes 1, 2 and 3):
Fixed Income Fund, 6,426,894 units,
(participants' cost $600,664) unit value $93.461...... $600,664
Fidelity Magellan Fund, 409,020 shares
(participants' cost $29,299), share value $85.980..... 35,168
Wells Fargo Asset Allocation Fund, 1,002,301 units
(participants' cost $10,754), unit value $14.580...... 14,614
E. I. DuPont de Nemours & Company Common Stock
3,102,124 shares (participants' cost $133,989)
share value $69.875................................... 216,761
ML Equity Index Trust CL A, 125,712 shares,
(participants' cost $3,645), share value $40.092...... 5,040
ML Global Holdings Fund CL A, 300,212 shares,
(participants' cost $3,838), share value $13.320...... 3,999
ML Balanced Fund for Investment & Retirement CL A,
67,148 shares, (participants' cost $781), share
value $11.370......................................... 763
ML Capital Fund CL A, 119,943 shares,
(participants' cost $3,365), share value $30.550...... 3,664
ML Basic Value Fund CL A, 121,885 shares,
(participants' cost $2,970), share value $28.310...... 3,451
Chrysler Corporation Common Stock, 6,460 shares
(participants' cost $97) share value $55.375.......... 358
Loans to participants (principal balance)............... 22,690
--------
Total Investments................................... 907,172
Receivables (including $3,353 from CONSOL).............. 4,666
Net Assets Available for Plan Benefits.............. $911,838
========
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, 1996
(Dollars in Thousands)
Fixed Fidelity Barclays DuPont ML ML ML
Income Magellan 3-Way Stock Equity Index Global Balanced
Fund Fund Fund Fund Trust Holdings Fund
========= ========== ========= ========== ============ ======== =========
Investment income $ 48,734 $ 6,260 $ 2 $ 6,162 $ - $ 320 $ 22
(dividends and interest)
Net realized and unrealized
appreciation (depreciation)
of investments - (1,873) 1,898 69,920 1,567 231 4
Deposits and withdrawals:
Employee deposits 11,056 1,493 478 5,398 213 183 9
Employer contributions 6,637 810 251 3,255 124 104 6
Rollover contributions 10,166 388 291 863 149 35 -
Employee withdrawals (64,322) (2,185) (683) (9,111) (483) (339) (7)
Transfers between investment
options (net) 39,171 (137) 566 (45,387) 4,268 723 (796)
Loan issues (6,959) (475) (154) (2,434) (62) (30) (2)
Loan repayments 4,938 528 164 2,651 100 38 1
Loan interest 1,022 102 39 589 20 8 -
Trust to Trust transfers 45 (8) - 510 - - -
_________ _________ _________ _________ ________ ________ _______
Change in net assets available
for plan benefits for year 50,488 4,903 2,852 32,416 5,896 1,273 (763)
Net assets available for plan
benefits at beginning of year 600,664 35,168 14,614 216,761 5,040 3,999 763
_________ _________ _________ _________ ________ ________ _______
Net assets available for plan
benefits at end of year $651,152 $ 40,071 $ 17,466 $249,177 $10,936 $ 5,272 $ -
========= ========= ========= ========= ======== ======== =======
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, 1996 (Continued)
(Dollars in Thousands)
ML ML Chrysler
Capital Basic Value Stock Loan Total
Fund Fund Fund Fund Receivables All Funds
======= =========== ======== ======== =========== =========
Investment income $ 528 $ 394 $ 16 $ 1,770 $ 27 $ 64,235
(dividends and interest)
Net realized and unrealized
appreciation (depreciation)
of investments 86 393 66 - - 72,292
Deposits and withdrawals:
Employee deposits 218 196 - - (50) 19,194
Employer contributions 134 124 - - (51) 11,394
Rollover contributions 58 33 - - - 11,983
Employee withdrawals (364) (282) (53) (2,127) - (79,956)
Transfers between investment
options (net) 1,045 1,638 (18) - (1,073) -
Loan issues (42) (67) - 10,225 - -
Loan repayments 69 91 - (8,624) 44 -
Loan interest 16 21 - (1,770) (47) -
Trust to Trust transfers - - - (7) - 540
________ ________ ______ ________ ______ _________
Change in net assets available
for plan benefits for year 1,748 2,541 11 (533) (1,150) 99,682
Net assets available for plan
benefits at beginning of year 3,664 3,451 358 22,690 4,666 911,838
________ ________ ______ ________ _______ _________
Net assets available for plan
benefits at end of year $ 5,412 $ 5,992 $ 369 $22,157 $3,516 $1,011,520
======== ======== ====== ======== ====== =========
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, 1995
(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 $ 47,246 $ 2,011 $ 2 $ 6,103 $ - $ 212 $ 55
(dividends and interest)
Net realized and unrealized
appreciation (depreciation)
of investments - 7,044 3,304 44,314 1,170 351 137
Deposits and withdrawals:
Employee deposits 12,002 1,465 537 6,308 109 202 59
Employer contributions 7,334 788 266 3,548 76 106 38
Rollover contributions 11,442 267 248 431 20 76 -
Employee withdrawals (47,201) (793) (397) (6,119) ( 80) (266) (53)
Transfers between investment
options (net) 15,615 (3,919) (718) (11,301) 609 (964) (857)
Loan issues (7,420) (425) (229) (3,302) ( 68) (31) (31)
Loan repayments 4,502 468 125 2,575 49 45 20
Loan interest 1,000 94 32 616 13 11 2
Trust to Trust transfers 30 5 6 374 (119) 3 4
_________ _________ _________ _________ ________ ________ _______
Change in net assets available
for plan benefits for year 44,550 7,005 3,176 43,547 1,779 (255) (626)
Net assets available for plan
benefits at beginning of year 556,114 28,163 11,438 173,214 3,261 4,254 1,389
_________ _________ _________ _________ ________ ________ _______
Net assets available for plan
benefits at end of year $600,664 $ 35,168 $ 14,614 $216,761 $ 5,040 $ 3,999 $ 763
========= ========= ========= ========= ======== ======== =======
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, 1995 (Continued)
(Dollars in Thousands)
ML ML Chrysler
Capital Basic Value Stock Loan Total
Fund Fund Fund Fund Receivables All Funds
======= =========== ======== ======== =========== =========
Investment income $ 364 $ 153 $ 12 $ 1,851 $ 2 $58,011
(dividends and interest)
Net realized and unrealized
appreciation (depreciation)
of investments 453 622 40 - - 57,435
Deposits and withdrawals:
Employee deposits 159 141 - - (73) 20,909
Employer contributions 91 91 - - (76) 12,262
Rollover contributions 51 19 - - - 12,554
Employee withdrawals (52) (269) (20) (1,697) - (56,947)
Transfers between investment
options (net) (122) 186 (17) - 1,244 -
Loan issues (75) (35) - 11,616 - -
Loan repayments 45 49 - (7,886) 8 -
Loan interest 10 13 - (1,851) 60 -
Trust to Trust transfers 6 - - 7 - 316
________ ________ ______ ________ ________ _________
Change in net assets available
for plan benefits for year 1,174 970 15 2,040 1,165 104,540
Net assets available for plan
benefits at beginning of year 2,490 2,481 343 20,650 3,501 807,298
________ ________ ______ ________ ________ _________
Net assets available for plan
benefits at end of year $ 3,664 $ 3,451 $ 358 $22,690 $ 4,666 $911,838
======== ======== ====== ======== ======== =========
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 Inc. ("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, 1996 and 1995, 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; 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 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, 1996 and December 31,
1995 was 7.99% and 8.33%, respectively.
Fidelity Magellan Fund A growth mutual fund offered through
Fidelity Investments.
Barclays 3-Way Fund Asset Allocation Fund with money invested
(Formerly known as Wells by BZW Global Investors among stocks,
Fargo Asset Allocation Fund) 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
Barclays 3-Way Fund that are loaned to
participants.
Merrill Lynch Mutual Funds A group of four 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
fund is no longer available to Plan participants.
At December 31, 1996, Plan participants were invested in the follow-
ing funds (number of participants in each fund): Du Pont Common Stock
(3,171); Fidelity Magellan Fund (1,239); Fixed Income Fund (5,631); Barclays
3-Way Fund (661); Merrill Lynch (ML) Global Holdings Fund (363); ML Equity
Index Trust (402); ML Capital Fund (401); ML Basic Value Fund (362); Chrysler
Corporation Common Stock (52) and Participant Loans (2,051). The numbers
reflect participation in multiple funds 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. 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 this fund.
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
Investment Valuation and Income Recognition - For financial reporting
purposes, the assets of the Plan are reflected on the accrual and fair value
basis of accounting. The Fixed Income Fund guaranteed investment contracts
(GIC), separate account portfolios (SAP) and synthetic guaranteed investment
contracts (SYN) are fully benefit responsive and thus, 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 Barclays
3-Way Fund are stated at the fair value of all underlying assets as reported
by the applicable custodian. The fair value of loans to participants in the
Loan Fund represent the outstanding principal balances of the loans.
13
PAGE 14
The unit value or price of the Fixed Income Fund, the Barclays 3-Way
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.
Use of Estimates - The preparation of financial statements, in conformity
with generally accepted accounting principles, requires management to make
estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results could differ from those
estimates.
NOTE 3 - INVESTMENTS
The following presents the Plan's investments:
December 31, 1996 December 31, 1995
Fixed Income (GIC, SAP, SYN).... $651,152 $600,664
DuPont Common Stock ............ 249,177 216,761
Fidelity Magellan Fund ......... 40,071 35,168
Barclays 3-Way Fund ............ 17,466 14,614
Merrill Lynch Mutual Funds ..... 27,612 16,917
Chrysler Common Stock .......... 369 358
Loans to Participants .......... 22,157 22,690
-------- --------
Total Investments $1,008,004 $907,172
========== ========
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, 1996 December 31, 1995
----------- ----------------- -----------------
CDC Inv. Mgmt. Corp.--7.10% ............................... $ 12,549 $ -
CDC Inv. Mgmt. Corp.--6.80% ............................... 10,348 -
Deutsche Bank--6.34% ...................................... 31,773 -
Aetna Life Insurance Company--9.01% ....................... - 31,766
Aetna Life Insurance Company--7.76% ....................... 35,400 -
Aetna Life Insurance Company--9.32% ....................... 20,387 25,393
Aetna Life Insurance Company--9.89% ....................... 22,705 25,837
Bankers Trust--5.74% ...................................... 30,192 27,768
Metropolitan Life Ins. Co.--7.61% ......................... 63,625 57,426
New York Life Insurance Company--9.11% .................... 20,203 25,209
New York Life Insurance Company--9.71% .................... 21,046 26,117
Providian Capital Management Family--6.96% ................ 39,832 36,228
Principal Mutual Life Insurance Company--9.10% ............ 19,551 24,399
Principal Mutual Life Insurance Company--9.50% ............ 19,369 28,671
Prudential Ins. Co. of America--8.26% ..................... 60,539 54,188
Prudential Ins. Co. of America--7.08% ..................... 59,692 54,376
Prudential Insurance Company of America--9.66% ............ 19,600 28,973
Prudential Insurance Company of America--9.96% ............ 20,047 29,553
Bankers Trust--7.69% ...................................... 23,112 20,905
The Travelers Insurance Companies--9.66% .................. 21,468 24,481
Citibank 7.40% ............................................ 14,714 13,325
Union Bank of Switzerland--6.67% .......................... 39,742 36,175
JP Morgan--6.17% .......................................... 34,073 11,455
-------- --------
Total Investment Contracts $639,967 $582,245
Short Term Investments (Incl. Merrill Lynch Government Fund) 11,185 18,419
TOTAL INVESTMENT IN FIXED INCOME $651,152 $600,664
======== ========
The aggregate crediting rates for all contracts as of December 31,
1996 and December 31, 1995 were 7.84% and 8.33% respectively. 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 synthetic guaranteed
investment contracts and separate account guaranteed investment contracts
have a guaranteed rate ranging from 0% to 3%. Guaranteed investment
contracts contain penalty provisions or other adjustments for early
termination of the contract not related to participant initiated events.
The carrying values and fair values of investment contracts as of
December 31, 1996 are as follows:
Carrying Value
(contract value) Fair Value
Guaranteed Investment Contracts $184,376 $190,683
Synthetic Guaranteed Investment Contracts 236,335 236,501
Separate Account Guaranteed Investment
Contracts 219,256 227,689
-------- --------
$639,967 $654,873
======== =========
15
PAGE 16
Synthetic guaranteed investment contracts are supported by 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, Barclays 3-Way 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.
Merrill Lynch
Fixed Income Fund Barclays 3-Way Fund Equity Index Trust _
Units Unit Units Unit Units Unit
Outstanding Value Outstanding Value Outstanding Value
January 31, 1996 6,530,030 $94.09 1,044,079 $14.85 135,604 $41.44
February 29, 1996 6,599,323 94.68 1,083,060 14.77 147,293 41.82
March 31, 1996 6,692,803 95.30 1,097,432 14.81 156,636 42.22
April 30, 1996 6,627,475 95.91 1,083,605 14.83 159,056 42.83
May 31, 1996 6,559,286 96.54 1,076,655 14.97 162,434 43.92
June 30, 1996 6,482,889 97.16 1,080,532 15.14 167,543 44.08
July 31, 1996 6,356,329 97.79 1,085,795 14.80 173,156 42.12
August 31, 1996 6,356,684 98.43 1,088,027 14.80 181,389 42.99
September 30, 1996 6,457,666 99.04 1,082,601 15.39 188,156 45.41
October 31, 1996 6,510,172 99.67 1,055,414 15.92 205,958 46.65
November 30, 1996 6,495,448 100.29 1,069,791 16.78 210,660 50.17
December 31, 1996 6,451,787 100.93 1,066,933 16.37 222,460 49.16
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 - 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,
1996 1995
-------------- --------------
(Dollars in Thousands)
Net assets available for benefits
per the financial statements $1,011,520 $ 911,838
Includes: Amounts allocated to
withdrawing participants reported
as asset reductions per the
financial statements 219 754
Total Assets per the Form 5500: $1,011,739 $ 912,592
=========== ============
Amounts payable to withdrawing participants are recorded on the Form 5500 as
a liability 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.
17
PAGE 18
SCHEDULE I
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1996
(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 $ 127,200 $ 249,177
========= =========
Merrill Lynch Equity Index Trust $ 8,282 $ 10,936
Global Holdings Fund 4,966 5,272
Capital Fund 5,091 5,412
Basic Value Fund 5,214 5,992
$ 23,553 $ 27,612
========= =========
Aetna Life Insurance Company SAGIC, 7.76% $ 35,400
GIC, 9.32% 20,387
GIC, 9.89% 22,705
Banker's Trust SYNGIC, 5.74% 30,192
SYNGIC, 7.69% 23,112
CDC Inv. Mgmt. Corp. SYNGIC, 7.10% 12,549
CDC Inv. Mgmt. Corp. SYNGIC, 6.80% 10,348
Deutsche Bank SYNGIC, 6.34% 31,773
Metropolitan Life Insurance Company SAGIC, 7.61% 63,625
New York Life Insurance Company GIC, 9.11% 20,203
GIC, 9.71% 21,046
Providian Capital Management SYNGIC, 6.96% 39,832
Principal Mutual Life Insurance Company GIC, 9.10% 19,551
GIC, 9.50% 19,369
Prudential Insurance Company of America SAGIC, 7.08% 59,692
SAGIC, 8.26% 60,539
GIC, 9.66% 19,600
GIC, 9.96% 20,047
The Travelers Insurance Companies GIC, 9.66% 21,468
Citibank SYNGIC, 7.40% 14,714
Union Bank of Switzerland SYNGIC, 6.67% 39,742
J.P. Morgan SYNGIC, 6.17% 34,073
Short Term Investments (Merrill Lynch
Government Fund) 11,185
________
Total $ 651,152 $ 651,152
========= =========
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, 1996
(Dollars in Thousands)
- --------------------------------------------------------------------------------------------------------
Identity of Issue, Borrower Current
Lessor or Similar Party Description of Investment Cost Value
- --------------------------------------------------------------------------------------------------------
Chrysler Corporation Common Stock $ 84 $ 369
========= =========
Fidelity Investments Fidelity Magellan Fund $ 36,566 $ 40,071
========= =========
BZW Global Investors Barclays 3-Way Fund $ 12,247 $ 17,466
========= =========
Plan Participants Loans $ 22,157 $ 22,157
========= =========
19
PAGE 20
SCHEDULE II
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1996
(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 $377,915 $ $ $ $377,915 $377,915 $
ML Government Fund 375,501 375,501 375,501
Aetna 14521 142,248 142,248 142,248
14006 141,954 141,954 141,954
Deutsche Bank CON-1 127,705 127,705 127,705
CDC BR 273-01 50,000 50,000 50,000
BR 273-02 50,000 50,000 50,000
Merrill Lynch E.I. DuPont de Nemours 67,826 67,826 67,826
& Company Stock Fund<Fa>
E. I. DuPont de Nemours 104,525 73,810 104,525 30,715
& Company Stock Fund<Fa>
<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 6, 1997 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, 1996.
ERNST & YOUNG, LLP
Pittsburgh, Pennsylvania
June 23, 1997
22