SEC File No 33-18130
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549-1004
FORM 11-K
ANNUAL REPORT
Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
[Fee Required]
For the Fiscal Year Ended January 31, 1997
EMPLOYEES SAVINGS PLAN OF
MOBIL OIL CORPORATION
(Full title of the plan)
MOBIL CORPORATION
3225 Gallows Road, Fairfax, Virginia
22037-0001
Telephone: (703) 846-3000
(Name of issuer of the securities held pursuant to the plan and
the address of its principal executive office)
13-2850309
(IRS Employer Identification No.)
EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
FORM 11-K
FOR THE FISCAL YEARS ENDED
JANUARY 31, 1996 AND 1997
TABLE OF CONTENTS
Page
Report of Ernst & Young LLP, Independent Auditors............... 1
Statements of Net Assets Available for Benefits................. 2
Statements of Changes in Net Assets Available for Benefits...... 3
Notes to Plan Financial Statements.............................. 4
Supplemental Information:
Schedule of Assets Held for Investment Purposes............... 12
Schedule of Reportable Transactions........................... 13
Signature....................................................... 14
Exhibit Index................................................... 15
Exhibit 23 - Consent of Ernst & Young LLP, Independent Auditors. 16
A schedule of party-in-interest transactions has not been presented because
there were no such prohibited transactions.
REPORT OF INDEPENDENT AUDITORS
Board of Directors
MOBIL OIL CORPORATION
We have audited the accompanying statements of net assets available for benefits
of the Employees Savings Plan of Mobil Oil Corporation (the Plan) as of January
31, 1996 and 1997, and the related statements of changes in net assets available
for benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan at
January 31, 1996 and 1997, and the changes in its net assets available for
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 as of January 31, 1997 and reportable
transactions for the year ended January 31, 1997, 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 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.
Fairfax, Virginia Ernst & Young LLP
April 11, 1997
- 1 -
EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
At January 31,
1996 1997
(000's) (000's)
Investments, at current value (Note 7)............... $4,881,530 $5,327,768
Company contributions receivable..................... 171,884 164,049
Participant contributions receivable................. 12,396 13,891
Dividends and interest receivable.................... 23,527 22,396
Cash................................................. 9,051 11,266
---------- ----------
5,098,388 5,539,370
Less:
Accrued interest payable (Note 4).................. 21,546 19,121
Long-term debt (Note 4)............................ 577,700 525,600
---------- ----------
599,246 544,721
Net assets available for benefits at end of year..... $4,499,142 $4,994,649
========== ==========
See accompanying notes
- 2 -
EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Years Ended January 31,
1996 1997
(000's) (000's)
Contributions:
Savings Account
Company (Note 4)................................. $ 56,752 $ 39,347
Participant...................................... 39,630 31,895
401(k) Account
Company.......................................... 21,843 17,888
Participant...................................... 61,474 58,431
---------- ----------
Total contributions.............................. 179,699 147,561
---------- ----------
Investment income (Note 8):
Dividend income
Mobil Common Stock............................... 67,236 66,626
Mobil ESOP Convertible Preferred Stock (Note 4).. 55,930 53,353
Interest and other investment income............... 110,477 116,297
Realized and unrealized gains and losses on
investments...................................... 829,016 691,543
----------- ----------
Investment income................................ 1,062,659 927,819
----------- ----------
Interest expense on long-term debt (Note 4).......... (54,088) (47,218)
Transfers in (Notes 1 and 5)......................... 23,987 70,755
Distributions to participants and transfers
out(Notes 1 and 5)............................... (403,909) (603,410)
---------- ----------
Net increase in net assets available for benefits 808,348 495,507
Net assets available for benefits:
Beginning of year................................. 3,690,794 4,499,142
---------- ----------
End of year....................................... $4,499,142 $4,994,649
========== ==========
See accompanying notes
- 3 -
EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
NOTES TO PLAN FINANCIAL STATEMENTS
JANUARY 31, 1996 and 1997
Note 1. Description of the Plan
Eligibility - Regular employees of Mobil Oil Corporation and its participating
affiliates (Mobil) generally become eligible to participate in the Employees
Savings Plan of Mobil Oil Corporation (the Plan) on the first of the month after
completion of one year of service.
Concurrent with the sale to Tenneco of Mobil Chemical Company's Plastics
Division in November 1995, the following provisions were made for its Plan
participants: (i) all accounts became fully vested, (ii) participants were
allowed under certain conditions to transfer their account balances directly to
a Tenneco plan during a window period from April 1, 1995 through September 30,
1996, (iii) a lump sum distribution window was opened through December 31, 1997,
and (iv) participants became eligible to initiate loans during the five year
period ending November 17, 2000. During the Plan years ended January 31, 1996
and 1997, participants transferred from their accounts a total $9,325,816 and
$2,177,733, respectively, to the Tenneco Plan.
On October 1, 1996, the Station Operators, Inc. Retirement Savings Plan of Mobil
Oil Corporation (the SOI Plan) was merged into the Plan. Participants in the SOI
Plan became participants in the Plan, except that they became ineligible to
receive Mobil's contributions in the Plan's 401(k) Account. The merger resulted
in the transfer of net assets totalling $5,188,040 to the Plan.
On November 1, 1996, Mobil's Pasadena Hourly Thrift Plan (the Pasadena Plan) was
merged into the Plan. Participants in the Pasadena plan became participants in
the Plan, except that they became ineligible to receive Mobil's contributions in
the Plan's 401(k) Account, and became eligible to receive a 2% ESOP allocation
in the Plan's Savings Account. The merger resulted in the transfer of net assets
totalling $1,947,028 to the Plan.
Contributions - The Plan is composed of two parts:
Savings Account - Employees can make after-tax contributions to the
Savings Account of the Plan, subject to certain tax law limitations.
The maximum permitted employee contribution to the Savings Account is
15% of base pay (plus certain make-up contributions). Mobil continues
to contribute sufficient funds to provide an allocation of Mobil's
Series B ESOP Convertible Preferred Stock (Mobil ESOP Convertible
Preferred Stock) equal to 4% of employees' base pay (except for (i)
Pasadena Hourly participants, whose allocation percentage is 2%, and
(ii) Films division participants, whose allocation percentage has been
increased from 4% to 5% for the year ended January 31, 1998), plus
additional Mobil ESOP Convertible Preferred Stock in lieu of preferred
cash dividends on such stock.
401(k) Account - This includes employee pre-tax contributions and
Mobil's pre-tax contributions of 2% of base pay (3% for pre-January 1,
1969 employees). SOI and Pasadena Hourly participants are ineligible to
receive Mobil contributions. An employee can elect to receive a portion
or all of Mobil's contribution in cash. The combined Mobil and employee
contributions to this account cannot exceed 15% of the employee's
eligible compensation. Federal regulations governing the 401(k) Account
limit some employees to less than a 15% combined Mobil and employee
401(k) contribution.
- 4 -
EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
NOTES TO PLAN FINANCIAL STATEMENTS
JANUARY 31, 1996 AND 1997
Note 1. Description of the Plan - continued
Vesting - Mobil's contributions to the Savings Account and related investment
income become vested upon completion of five years of employment. Mobil's
contributions to the 401(k) account and all employee contributions and related
earnings are immediately vested. The terms of the Plan are more fully described
in the Summary Plan Description, which is furnished to each participant.
Note 2. Administration of Plan Assets
The Plan is administered by Mobil Oil Corporation acting through fiduciaries
designated by its Board of Directors to serve at its discretion.
Merrill Lynch, Pierce, Fenner and Smith Inc. is the record-keeper for the
Plan. Merrill Lynch Trust Company (Merrill Lynch) is the trustee, with the
exception of the ESOP portion of the Plan, of which Bankers Trust Company is
the trustee.
Note 3. Major Accounting Policies
Security valuation - Mobil Common Stock is valued at the Plan's average sales
price for the day (based on the New York Stock Exchange), on the day of
valuation or, lacking any sales on that day, at the most recent bid quotation.
Mobil's ESOP Convertible Preferred Stock units (1/100th of a share) are stated
at current value, which is the higher of the liquidation value or current market
value. Liquidation value is the minimum price guaranteed by Mobil, $77.75 per
unit. Current market value is defined as the average sales price for Mobil
Common Stock as defined in the previous paragraph.
Long-Term Fixed Income Funds and the Merrill Lynch Floating Rate Long-Term Fixed
Income Fund (LTFI)are stated at current value, which approximates fair value,
representing the original cost, plus interest (based upon the crediting rates of
the underlying contracts) reduced by transfers out and withdrawals.
The Aim Charter Fund, the Merrill Lynch Global Allocation Fund, the Merrill
Lynch Institutional Fund, the Franklin U.S. Government Securities Fund, the MFS
Emerging Growth Fund, the Templeton Foreign Fund and the Templeton Developing
Markets Trust are publicly traded and valued at the closing sale price of the
last business day of the Plan year.
The Jennison Fund and the Merrill Lynch Equity Index Trust are stated at current
value, which approximates the fair value of the funds' underlying securities and
encompass dividends, interest, gains and losses and administration fees in the
values of each unit.
Participant loans represent the outstanding principal balances of the loans and
are valued at cost, which approximates current value.
Additional descriptions of the investment choices in the Plan are available to
the participants from Merrill Lynch.
- 5 -
EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
NOTES TO PLAN FINANCIAL STATEMENTS
JANUARY 31, 1996 AND 1997
Note 3. Major Accounting Policies - continued
Investment income - Dividends from Mobil Common Stock are accrued on the ex-
dividend date.
The minimum annual dividend on a unit of Mobil ESOP Convertible Preferred Stock
accrues on a monthly basis, and is set at $6.00 per year. If the aggregate
declared dividends on a share of Mobil Common Stock for the six months before a
semi-annual dividend on the Mobil ESOP Convertible Preferred Stock exceed $3.00
per share, the semi-annual dividend on a unit of the Mobil ESOP Convertible
Preferred Stock will be at least the same as such aggregate dividends on a share
of Mobil Common Stock.
All other earnings are stated on an accrual basis. Investment income from all
sources is stated net of investment management, trustee, audit and other third
party fees of approximately $1,570,000 and $2,427,000 for the years ended
January 31, 1996 and 1997, respectively.
Security transactions are recorded on a trade date basis. Realized and
unrealized gains and losses are based on an average cost method.
Forfeitures - Amounts forfeited (non-vested Mobil contributions and accumulated
earnings thereon) under the Plan are used to reduce Mobil contributions.
Unapplied forfeitures at January 31 are accounted for as reductions in Mobil
contributions.
Reclassifications - Certain amounts in the financial statements for the year
ended January 31, 1996, have been reclassified to conform to the 1997
presentation.
Use of estimates - The preparation of the financial statements in accordance
with generally accepted accounting principles requires Mobil to make certain
estimates and assumptions affecting amounts in the financial statements. Actual
results could differ from these estimates and assumptions.
Note 4. Employee Stock Ownership Plan (ESOP)
In November 1989, the ESOP trust, supported by Mobil guarantees, privately
placed $800,000,000 of floating interest rate notes due November 22, 2004, and
used the proceeds to purchase 102,894 shares of Mobil ESOP Convertible Preferred
Stock at a price equal to liquidation value, or $7,775 per share. Each share is
convertible into 100 shares of Mobil Common Stock and is entitled to 100 votes.
On February 27, 1990, the ESOP trust issued and Mobil guaranteed $800,000,000 of
9.17% Sinking Fund Debentures due February 29, 2000, pursuant to Rule 415 under
the Securities Act of 1933. The ESOP trust used the proceeds to retire the
floating interest rate notes due November 22, 2004.
- 6 -
EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
NOTES TO PLAN FINANCIAL STATEMENTS
JANUARY 31, 1996 AND 1997
Note 4. Employee Stock Ownership Plan (ESOP) - continued
The ESOP trust has a shelf registration on file with the Securities and Exchange
Commission that would, as of January 31, 1997, permit the offer and sale of $190
million of debt securities, guaranteed by Mobil, pursuant to Rule 415. As of
January 31, 1997, the ESOP trust issued and Mobil guaranteed an aggregate of
$110 million of medium-term notes under this shelf registration. The proceeds of
sale of these notes were used to retire identical principal amounts of existing
debt, and the proceeds of the issue and sale of any other debt securities issued
and sold under this shelf registration would be used for the same purpose.
Interest on these medium-term notes is due semi-annually. A summary of these
medium-term notes is as follows:
Date of Interest Maturity
Issuance Amount Rate Date
2/28/94 $25,000,000 6.220% 2/28/02
8/31/94 15,000,000 7.550% 2/28/02
2/28/95 30,000,000 8.225% 8/31/04
8/31/96 25,000,000 6.700% 8/31/00
8/31/96 15,000,000 6.625% 2/28/01
Principal and interest payments on the debentures and medium term notes are due
semi-annually. Fiscal year annual principal maturities are as follows:
$103,600,000 in 1998; $115,800,000 in 1999; $135,600,000 in 2000; $85,600,000 in
2001; $15,000,000 in 2002; and $70,000,000 thereafter. Only assets held in the
ESOP trust are subject to recourse by creditors of the ESOP trust.
On February 28, 1997, the ESOP trust issued and Mobil guaranteed medium term
notes of $25,000,000 at 6.25%, due August 31, 2001, and $10,000,000 at 6.30%,
due September 3, 2002.
The ESOP trust uses dividends on the Mobil ESOP Convertible Preferred Stock,
together with contributions from Mobil, to repay the ESOP debt (principal and
interest). The amount of ESOP debt repaid each Plan year results in the release
of shares of Mobil ESOP Convertible Preferred Stock to be available for
allocation to Plan participants' accounts. Mobil contributes semi-annually
sufficient funds to ensure that each participant's account is credited with
Mobil ESOP Convertible Preferred Stock as discussed in Note 1.
Plan participants earned 531,391 and 390,438 pay-based units of Mobil ESOP
Convertible Preferred Stock, plus credit for fractional units, for the fiscal
years ended January 31, 1996 and 1997, respectively. The aggregate fair values
of these units were $53,492,407 in 1996 and $44,475,803 in 1997. In addition,
Plan participants earn units of Mobil ESOP Convertible Preferred Stock equal to
the value of the preferred dividends on units allocated to participant accounts.
The units of Mobil ESOP Convertible Preferred Stock earned by dividends were
222,232 with a fair value of $22,365,354 in 1996, and 214,797 with a fair value
of $24,513,138 in 1997.
- 7 -
EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
NOTES TO PLAN FINANCIAL STATEMENTS
JANUARY 31, 1996 AND 1997
Note 4. Employee Stock Ownership Plan (ESOP) - continued
As of January 31, 1996 and 1997, the Plan held 5,240,436 and 4,635,201 units,
respectively, of Mobil ESOP Convertible Preferred Stock, which have yet to be
earned by employees. The current values of these unearned units were
$580,378,287 in 1996 and $608,370,131 in 1997. Net assets available for benefits
at January 31, 1996 and 1997, included unrealized gains on the unallocated units
of $172,934,388 and $247,983,254, respectively, since the ESOP's inception.
Financial statements for the ESOP are included in the financial statements of
the Plan. Summarized financial data for the ESOP are as follows:
1996 1997
(000's) (000's)
At January 31:
Current value of Mobil ESOP Convertible Preferred Stock
(shares outstanding 1996 - 92,383; 1997 - 87,786).....$1,023,141 $1,152,198
Company contribution receivable......................... 170,393 162,457
Dividends receivable.................................... 22,985 21,878
Less:
Accrued interest payable.............................. 21,546 19,121
Long-term debt........................................ 577,700 525,600
-------- --------
Net assets available for benefits....................... $617,273 $791,812
======== ========
Year Ended January 31:
Company contributions................................... $ 56,752 $ 39,347
Dividend income......................................... 55,930 53,353
Realized and unrealized gains on investments............ 229,603 182,551
Less:
Interest expense...................................... 54,088 47,218
Distributions to participants......................... 31,360 53,494
-------- --------
Net increase in net assets available for benefits........ $256,837 $174,539
======== ========
Note 5. Contributions and Distributions
Mobil's contributions are net of forfeitures of $559,010 and $650,123 for the
years ended January 31, 1996 and 1997, respectively.
Transfers in include participant-initiated rollovers of certain distributions
from other tax-qualified plans into the Savings Account, and the merger of other
Mobil plans into the Plan (see Note 1).
The Plan provides for the payment of vested benefits upon termination, death,
disability or retirement.
Effective June 1, 1995, the 401(k) hardship withdrawal provision was expanded to
permit withdrawals to pay expenses for room and board as part of post-secondary
education costs. Effective August 1, 1995, former employees and beneficiaries
were granted the right to make partial withdrawals from their 401(k) and Savings
Accounts, subject to the same rules as are applicable to active employees.
- 8 -
EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
NOTES TO PLAN FINANCIAL STATEMENTS
JANUARY 31, 1996 AND 1997
Note 6. Participant Loans
The Plan allows participants to borrow against their accounts in the trust. Loan
interest rates are reviewed quarterly and determined for new loans, if
appropriate, based on the "Bank Prime Loan" rate for the last business day of
the second preceding calendar month, as published in Federal Reserve Statistical
Release H.15. The term of loans may be any monthly increment between 12 and 60
months.
Effective February 1, 1995, the limit on the maximum loan amount imposed by the
rule that monthly repayment amounts cannot exceed 10% of base pay was removed.
The maximum loan amount permitted is the lesser of (i) one-half the current
value of the vested portion of the participant's account less any outstanding
loan balance, or (ii) $50,000 less the maximum outstanding loan balance in the
preceding twelve months.
The Plan was amended in 1996 to permit employees whose employment with Mobil was
terminated as a result of the sale of operations in Nichols, Florida, the sale
of the Consumer Products Division and Mobil Natural Gas Inc.'s asset sale and
joint venture to continue repaying their outstanding loans in accordance with
the existing repayment schedules.
Note 7. Plan Investments
Investments in the Plan at January 31, 1996 were as follows:
Number of Current
Shares Cost Value
or Units (000's) (000's)
Mobil Common Stock*....................... 17,689,088 $ 995,629 $1,959,067
Mobil ESOP Convertible Preferred Stock.... 92,383 718,278 1,023,141
Merrill Lynch Floating Rate Long-Term
Fixed Income Fund....................... 569,412,660 569,413 569,413
Jennison Equity Fund...................... 14,471,579 328,846 566,562
Merrill Lynch Institutional Fund.......... 147,102,417 147,102 147,102
MFS Emerging Growth Fund.................. 1,737,398 43,554 47,049
Merrill Lynch Global Allocation Fund...... 4,273,430 56,788 60,810
Merrill Lynch Equity Index Trust.......... 670,074 23,470 27,770
Franklin U. S. Government Securities Fund. 8,073,080 54,662 56,269
AIM Charter Fund.......................... 3,409,019 32,823 34,602
Templeton Foreign Fund.................... 2,499,353 23,561 23,694
Templeton Developing Markets Trust........ 990,671 13,518 14,147
Long-Term Fixed Income Funds:
Restricted Option 12................. 7,253,784 73,702 110,838
Restricted Option 13................. 11,165,106 112,560 148,161
Participant Loans......................... - 92,905 92,905
---------- ----------
Total investments $3,286,811 $4,881,530
========== ==========
* Represents 4.5% of the 394,316,934 shares outstanding at January 31, 1996.
- 9 -
EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
NOTES TO PLAN FINANCIAL STATEMENTS
JANUARY 31, 1996 AND 1997
Note 7. Plan Investments - continued
Investments in the Plan as of January 31, 1997 were as follows:
Number of Current
Shares Cost Value
or Units (000's) (000's)
Mobil Common Stock*....................... 15,046,411 $ 916,836 $1,974,841
Mobil ESOP Convertible Preferred Stock.... 87,786 682,536 1,152,198
Merrill Lynch Floating Rate Long-Term
Fixed Income Fund....................... 799,352,060 799,352 799,352
Jennison Equity Fund...................... 14,070,613 359,106 710,285
Merrill Lynch Institutional Fund.......... 147,357,803 147,358 147,358
MFS Emerging Growth Fund.................. 3,502,381 98,987 112,356
Merrill Lynch Global Allocation Fund...... 5,571,731 76,935 82,517
Merrill Lynch Equity Index Trust.......... 1,149,616 47,235 60,038
Franklin U.S. Government Securities Fund.. 8,383,658 56,606 56,841
AIM Charter Fund.......................... 4,828,425 49,430 56,541
Templeton Foreign Fund.................... 5,073,095 49,537 53,268
Templeton Developing Markets Trust........ 2,105,973 30,886 34,896
Participant Loans......................... - 87,277 87,277
---------- ----------
$3,402,081 $5,327,768
* Represents 3.8% of the 394,130,120 shares outstanding at January 31, 1997.
Additional investments in Restricted Options 12 and 13 are not permitted. The
contractually agreed annual effective interest yields were: 8.69% through June
30, 1996 for Restricted Option 12 and 7.18% through January 2, 1997 for
Restricted Option 13.
The average crediting interest rate of the Merrill Lynch Floating Rate Long-
Term Fixed Income Fund for the years ended January 31, 1996 and 1997 was 6.6%
and 6.5%, respectively. The annualized crediting interest rate at January 31,
1996 and 1997 was 6.6% and 6.5%, respectively. Crediting rates fluctuate with
the activities of the underlying contracts. This investment choice has no fixed
term nor a minimum crediting interest rate in that context.
At January 31, 1996 and 1997, the percentage of the Plan's net assets that were
investments in or receivables from Mobil was 71% and 66%, respectively.
On January 31, 1997, Mobil's directors authorized a two for one split of Mobil
Common Stock and a 100% dividend on the Mobil ESOP Convertible Preferred Stock,
subject to shareholder approval in May 1997. If the shareholders give this
approval, the dividend rate on and the liquidation price of the Mobil ESOP
Convertible Preferred Stock will be cut in half. The record date for the split
of the Mobil Common Stock and the 100% dividend on the Mobil ESOP Convertible
Preferred Stock will be May 20, 1997.
- 10 -
EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
NOTES TO PLAN FINANCIAL STATEMENTS
JANUARY 31, 1996 AND 1997
Note 8. Investment Income
Total investment income, including realized and unrealized gains and losses, was
as follows:
1996 1997
(000's) (000's)
Mobil Common Stock............................. $ 516,905 $407,337
Mobil ESOP Convertible Preferred Stock......... 285,533 235,902
Merrill Lynch Floating Rate Long-Term Fixed
Income Fund.................................. 29,048 38,925
Jennison Equity Fund........................... 146,317 160,795
Merrill Lynch Institutional Fund............... 9,557 7,550
MFS Emerging Growth Fund....................... 3,823 13,611
Merrill Lynch Global Allocation Fund........... 10,892 10,002
Merrill Lynch Equity Index Trust............... 4,638 10,449
Franklin U.S. Government Securities Fund....... 5,109 2,436
AIM Charter Fund............................... 5,127 9,990
Templeton Foreign Fund......................... 917 5,851
Templeton Developing Markets Trust............. 848 4,606
Long-Term Fixed Income Funds:
Restricted Option 10...................... 13,041 -
Restricted Option 11...................... 4,346 -
Restricted Option 12...................... 9,265 3,769
Restricted Option 13...................... 10,443 9,285
Participant loans & other...................... 6,850 7,311
---------- --------
$1,062,659 $927,819
Note 9. Tax Status
On October 12, 1995, the Internal Revenue Service (IRS) determined that the
Plan, as amended to include the ESOP, continued to be a qualified plan under
Section 401(a) of the Internal Revenue Code (the Code), that the ESOP portion
qualifies as an employee stock ownership plan under section 4975(e)(7) of the
Code, and that the Trust thereunder (the Trust) is exempt from Federal income
tax under Section 501(a) of the Code.
Note 10. Plan Termination
While Mobil has not expressed an intent to terminate the Plan, it may do so at
any time, subject to the provisions of the Employee Retirement Income Security
Act (ERISA). In the event the Plan is terminated, all participants will become
fully vested in their accounts and the net assets of the Plan shall be
distributed among the participants in accordance with ERISA.
- 11 -
SUPPLEMENTAL INFORMATION
EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
JANUARY 31, 1997
Description of Investment, CURRENT
Identity of Issue, Borrower, Including Maturity Date, Rate of COST VALUE
Lessor or Similar Party Interest, Par or Maturity Value (000's) (000's)
- ----------------------------------------------------------------------------------------------------
Corporate Stocks:
Mobil Common Stock* 15,046,411 shares $ 916,836 $1,974,841
Mobil ESOP Convertible
Preferred Stock* 87,786 shares 682,536 1,152,198
Registered Investment Companies:
Merrill Lynch Institutional Fund* 147,357,803 shares 147,358 147,358
Common Collective Trusts:
Massachusetts Financial Services Company
MFS Emerging Growth Fund 3,502,381 shares 98,987 112,356
Merrill Lynch Global Allocation Fund* 5,571,731 shares 76,935 82,517
Merrill Lynch Equity Index Trust* 1,149,616 shares 47,235 60,038
Franklin Custodian Funds, Inc. Franklin
U.S. Government Securities Fund 8,383,568 shares 56,606 56,841
AIM Charter Fund 4,828,425 shares 49,430 56,541
Franklin Templeton Group Templeton
Foreign Fund 5,073,095 shares 49,537 53,268
Franklin Templeton Group Templeton
Developing Markets Trust 2,105,973 shares 30,886 34,896
Other investments:
Jennison Associates Capital Corporation
Jennison Equity Fund 14,070,613 units 359,106 710,285
Merrill Lynch Floating Rate
Long-Term Fixed Income Fund* 799,352,060 shares 799,352 799,352
Participant loans, 6.0% to 9.0% interest rate range* 87,277 87,277
---------- ----------
$3,402,081 $5,327,768
* Party-in-interest as defined by ERISA
- 12 -
SUPPLEMENTAL INFORMATION
EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED JANUARY 31, 1997
Expense Current
Incurred Value at Net
Identity Purchase Selling Lease With Cost of Transaction Gain
of Party Price** Price** Rental Transaction Asset Date (Loss)
Involved Description of Asset (000's) (000's) (000's) (000's) (000's) (000's) (000's)
- ----------------------------------------------------------------------------------------------------------
Series of Transactions (Category iii)
Mobil* Mobil Common Stock
1,020 Purchases $348,313 $348,313
1,095 Sales $392,260 310,915 $392,260 $ 81,345
Merrill Merrill Lynch Floating
Lynch* Rate LTFI
1,088 Purchases 654,901 654,901
1,022 Sales 425,981 425,981 425,981 -
* Party-in-interest as defined by ERISA
There were no category (i), (ii) or (iv) reportable transactions for the fiscal
year.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, Mobil Oil
Corporation, the administrator of the Employees Savings Plan of Mobil Oil
Corporation, has duly caused this Annual Report to be signed on its behalf by
the undersigned hereunto duly authorized.
EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
MOBIL OIL CORPORATION
BY /s/ GORDON G. GARNEY
NAME AND TITLE Gordon G. Garney, Senior
Assistant Secretary
DATE May 9, 1997
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EXHIBIT INDEX
EXHIBIT SUBMISSION MEDIA
23. Consent of Ernst & Young LLP, Electronic
Independent Auditors,
dated May 2, 1997.
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