SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One)
[ X ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For fiscal year ended December 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from to
Commission file number 1-170-2
A. Full title of the plan and the address of the plan,
if different from that of the issuer named below:
AMOCO FABRICS AND FIBERS COMPANY
HOURLY 401(K) SAVINGS PLAN
900 Circle 75 Parkway, Suite 550
Atlanta, GA 30339-3098
B. Name of issuer of the securities held pursuant to
the plan and the address of its principal executive
office:
AMOCO CORPORATION
200 East Randolph Drive
Chicago, Illinois 60601
Telephone 312-856-6111
SIGNATURE
The Plan.
Pursuant to the requirements of the Securities Exchange Act of
1934, the trustees (or other persons who administer the
employee benefit plan) have duly caused this annual report to
be signed on its behalf by the undersigned hereunto duly
authorized.
AMOCO FABRICS AND FIBERS COMPANY
HOURLY 401(K) SAVINGS PLAN
By Amoco Fabrics and Fibers Company
Plan Administrator
Date: By F. G. Andrusko
June 14, 1996 F. G. Andrusko
President
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of Amoco Fabrics and Fibers Company
In our opinion, the accompanying statements of net assets
available for benefits (with fund information) and the related
statement of changes in net assets available for benefits
(with fund information) present fairly, in all material
respects, the net assets available for benefits of the Amoco
Fabrics and Fibers Company Hourly 401(K) Savings Plan at
December 31, 1995 and 1994, and the changes in net assets
available for benefits for the year ended December 31, 1995,
in conformity with generally accepted accounting principles.
These financial statements are the responsibility of Amoco
Fabrics and Fibers Company's management; 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 audits 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
management, 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 fund information in the statement of net assets available
for benefits (with fund information) and statement of changes
in net assets available for benefits (with fund information)
is presented for purposes of additional analysis rather than
to present the net assets available for benefits and changes
in net assets available for benefits of each fund. The fund
information has been subjected to the auditing procedures
applied in the audits of the basic financial statements, and,
in our opinion, is fairly stated in all material respects in
relation to the basic financial statements taken as a whole.
PRICE WATERHOUSE LLP
Chicago, Illinois
June 14, 1996
AMOCO FABRICS AND FIBERS COMPANY
HOURLY 401(K) SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
(WITH FUND INFORMATION)
December 31,
1995 1994
Assets (thousands of dollars)
Investments:
Amoco Stock Fund $ 5,993 $ 3,144
Equity Index Fund 1,826 922
Money Market Fund 829 479
Balanced Fund 1,761 1,021
Total investments 10,409 5,566
Participant loans receivable 821 183
Total assets 11,230 5,749
Liabilities - -
Net assets available for benefits $11,230 $ 5,749
The accompanying notes are an integral part of these
statements.
AMOCO FABRICS AND FIBERS COMPANY
HOURLY 401(K) SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
(WITH FUND INFORMATION) (PAGE 1 OF 2)
For the year ended December 31, 1995
(thousands of dollars)
Amoco Equity Money
Stock Index Market
Fund Fund Fund
Additions of assets attributed to:
Employee contributions $ 1,262 $ 676 $ 432
Employer contributions 1,176 -- --
Rollover contributions 1 1 1
Forfeitures (net) (27) -- --
Realized gains on sales of
investments -- 11 --
Change in unrealized
appreciation in fair
value of investments 847 351 --
Interest and dividends 169 56 40
Participant loans (net) (287) (125) (79)
Interfund transfers (net) (22) 52 4
Total additions 3,119 1,022 398
Deductions of assets attributed to:
Administrative expenses (23) (4) (2)
Distributions to participants (247) (114) (46)
Total deductions (270) (118) (48)
Net increase in plan
assets during the year 2,849 904 350
Net assets available for
plan benefits:
Beginning of year 3,144 922 479
End of year $ 5,993 $ 1,826 $ 829
The accompanying notes are an integral part of these
statements.
AMOCO FABRICS AND FIBERS COMPANY
HOURLY 401(K) SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
(WITH FUND INFORMATION) (PAGE 2 OF 2)
For the year ended December 31, 1995
(thousands of dollars)
Cash
Disbursements
Account and
Balanced Participant
Fund Loans Total
Additions of assets attributed to:
Employee contributions $ 742 $ -- $ 3,112
Employer contributions -- -- 1,176
Rollover contributions 1 -- 4
Forfeitures (net) -- 27 --
Realized gains on sales of
investments 6 -- 17
Change in unrealized
appreciation in fair
value of investments 183 -- 1,381
Interest and dividends 95 30 390
Participant loans (net) (148) 639 --
Interfund transfers (net) (34) -- --
Total additions 845 696 6,080
Deductions of assets attributed to:
Administrative expenses (4) (29) (62)
Distributions to participants (101) (29) (537)
Total deductions (105) (58) (599)
Net increase in plan
assets during the year 740 638 5,481
Net assets available for
plan benefits:
Beginning of year 1,021 183 5,749
End of year $ 1,761 $ 821 $11,230
The accompanying notes are an integral part of these
statements.
AMOCO FABRICS AND FIBERS COMPANY
HOURLY 401(K) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. Description of the Plan:
Amoco Fabrics and Fibers Company (the "Company")
established the Amoco Fabrics and Fibers Company 401(K)
Savings Plan effective January 1, 1994. The plan was amended
and restated effective January 1, 1996 and its name was
changed to Amoco Fabrics and Fibers Company Hourly 401(K)
Savings Plan (the "Plan"). The purpose of the Plan is to
encourage eligible employees to regularly save part of their
earnings and to assist them in accumulating additional
security for their retirement. The Plan provides that both
employee and Company contributions will be held in a trust by
an independent trustee for the benefit of participating
employees. Bankers Trust New York Corporation is the trustee
for the Plan (the "Trustee"). The Company reserves the right
to amend or terminate the Plan at any time. The Plan is
subject to the provisions of the Employee Retirement Income
Security Act of 1974 ("ERISA").
Under the Plan, participating employees can invest a
total of 13 percent of pre-tax earnings. The first three
percent will be matched by the Company at a rate of $.50 for
every $1.00 contributed by the employee. Company contributions
are initially invested in the Amoco Stock Fund.
There were 3,611 participants in the Plan at December 31,
1995, out of a total of 5,361 eligible participants.
Participants are fully vested in their contributed accounts.
Vesting in Company contribution accounts is dependent upon
specific criteria as described in the Plan document. Forfeited
Company contributions are used to offset administrative
expenses.
The contributions are invested in up to four savings
options as determined by participants. The participant can
direct the Trustee to invest in one or more of the following
options: Amoco Stock Fund; Equity Index Fund; Money Market
Fund; and Balanced Fund.
Trustee fees, brokerage commissions, and other
transaction fees and expenses related to the Amoco Stock Fund,
the Equity Index Fund, the Money Market Fund and the Balanced
Fund are generally paid out of those respective funds. As a
result, the returns on those investments are net of the fees
and expenses of the managers of these funds and certain other
brokerage commissions and other fees and expenses incurred in
connection with those investment elections. During 1995, the
trustee fees
NOTES TO FINANCIAL STATEMENTS (continued)
related to the Amoco Stock Fund were paid by the Company.
Administrative expenses for 1995 were paid by the Company, but
may be charged to the Plan in future years at the
discretion of Company management and in accordance with the
terms of the Plan.
Amoco Stock Fund
Amoco Stock Fund's primary investment objective is to
purchase shares of Amoco Corporation ("Amoco") common stock,
which have no par value. Amounts not invested in Amoco common
stock are held as cash or are used to purchase short-term
investments or invest in short-term investment funds of the
Trustee. Dividends paid on Amoco common stock held in the
Amoco Stock Fund are used primarily to purchase additional
shares of Amoco common stock or to meet the cash demands of
the Amoco Stock Fund.
The percentage of assets of the Amoco Stock Fund in
investments other than Amoco common stock under normal
circumstances is less than 5 percent. However, this figure may
change as transactions are made and may be substantially
higher or lower at a given time. On December 31, 1995, the
percentage of investments in Amoco common stock was 95
percent.
Shares of common stock held in the fund and dividends and
other distributions on common stock are not specifically
allocated to participant accounts. Instead, each participant's
investment in the Amoco Stock Fund is based on the proportion
of his or her investment in the fund to all Plan participants.
Participants' balances in the fund are denominated in "units."
At December 31, 1995, there were 432,150 units in the fund at
a unit value of $13.83. The Directed Trustee of the Amoco
Stock Fund is Bankers Trust New York Corporation.
Equity Index Fund
Amounts invested in the Equity Index Fund are placed in
the Bankers Trust Pyramid Funds, which are managed by Bankers
Trust Company. The goal of the fund is to create a portfolio
of stocks which will track the Standard & Poor's ("S&P") 500
Index return with minimum deviations. The portfolio strategy
provides for the purchase of stocks representing over 95-97
percent of the pro rata weighted market values of the S&P 500
Index. As of December 31, 1995, the Equity Index Fund
represented 98 percent of the pro rata weighted market values
of the S&P 500 Index. In order to reduce costs, transactions
are made only to reproduce the composition of the index, to
invest cash received from dividends or buyouts, to invest
additions to the fund and to raise cash for withdrawals. At
December 31, 1995, there were 131,245 shares in the fund at a
net asset value of $13.82.
NOTES TO FINANCIAL STATEMENTS (continued)
Money Market Fund
The investment objective of the fund is to provide higher
returns than typical money market funds provide while
preserving capital. Amounts invested in the Money Market Fund
are used to purchase units of the BT Cash Management Fund.
Assets of the fund are held in cash or in high quality short-
term securities, including commercial paper, corporate notes
and bonds, banking securities, United States Treasury and
Agency securities, collateralized repurchase agreements, asset-
backed securities, and foreign currency-denominated debt
securities. The portfolio guidelines state that all
investments must meet the fund's high credit standards,
carrying ratings of A1/P1 or higher. The portfolio's average
maturity is maintained at 120 days or less. The manager of the
fund, Bankers Trust Company, has the responsibility of
purchasing the selection of securities for the fund.
Balanced Fund
Amounts invested in the Balanced Fund are used to
purchase shares of the Bankers Trust Pyramid Asset Management
Fund. The goal of the Balanced Fund is to provide the investor
with above-average long-term returns while minimizing downside
risk through an actively managed portfolio of equity
securities, bonds, and money market instruments using targeted
portfolio weights and asset policy ranges. The fund's
strategic investment allocation is 55 percent stocks, 35
percent bonds, and 10 percent money market instruments. The
asset policy ranges identify the limits within which the
investment manager, Bankers Trust Company, determines the
actual portfolio proportions. These ranges are 40-70 percent
for stocks, 25-55 percent for bonds, and 0-25 percent for
money market instruments. At December 31, 1995, there were
160,714 shares in the fund at a net asset value of $10.93.
2. Summary of Significant Accounting Policies:
Method of Accounting
The financial statements of the Plan are prepared under
the accrual method of accounting.
Investment Valuation
All investments of the funds are stated at fair value as
determined by quoted market prices. Realized gains and losses
are recognized upon the disposition of investments by
comparing the proceeds to the average cost (see Note 5).
NOTES TO FINANCIAL STATEMENTS (continued)
3. Investments:
The composition of various savings plan funds as of
December 31, 1995 and 1994 was as follows:
December 31,
1995 1994
(thousands of dollars)
Amoco Stock Fund
Amoco Corporation common stock, at
market value; 80,006 shares and
50,389 shares, respectively (cost --
$4,776 and $2,883, respectively) $ 5,720 $ 2,979
Cash equivalents 290 221
Interest, dividends, and other
receivables(payables) (17) (56)
Total 5,993 3,144
Equity Index Fund
BT Pyramid Fund at market value;
131,245 shares and 88,333 shares,
respectively (cost -- $1,469 and
$921, respectively) 1,814 915
Cash equivalents 36 26
Interest, dividends, and other
receivables(payables) (24) (19)
Total 1,826 922
Money Market Fund
Cash equivalents 850 481
Interest, dividends, and other
receivables(payables) (21) (2)
Total 829 479
Balanced Fund
BT Pyramid Asset Management Fund, at
market value; 160,714 shares and
108,099 shares, respectively (cost
-- $1,596 and $1,040, respectively) 1,756 1,017
Cash equivalents 37 30
Interest, dividends, and other
receivables(payables) (32) (26)
Total 1,761 1,021
Total Investments $10,409 $ 5,566
NOTES TO FINANCIAL STATEMENTS (continued)
4. Participant Loans:
Participants are eligible to borrow from their account
balances in the Plan. Loans are made in the form of cash and
the amount may not exceed the lesser of 50 percent of the
market value of the total vested accounts or $50,000 less the
highest loan balance outstanding during the preceding twelve
months. The participant must execute a promissory note to take
out a loan and the maximum time period for a loan repayment is
fifty-four months. Interest rates are fixed for the duration
of the loan and charged on the unpaid balance. The interest
rate charged is the prime rate as reported by the Wall Street
Journal on the next to the last business day of the month
preceding the month the participant applies for the loan.
Repayment of loan principal and interest is generally made by
payroll deductions and credited to the participant's accounts.
5. Sales, Redemptions and Distributions of Securities:
The aggregate of income realized from sales, redemptions
and distributions of securities in participants' accounts for
the year ended December 31, 1995 was as follows:
Average Gains
Proceeds Cost Realized
(thousands of dollars)
Amoco Stock Fund $ 2,438 $ 2,438 $ --
Equity Index Fund 894 883 11
Balanced Fund 954 948 6
Total $ 4,286 $ 4,269 $ 17
Average cost is calculated as the weighted average of the
fair value of the disposed securities at the beginning of the
year or acquisition cost if acquired during the year.
6. Taxes:
The Company received in August, 1995, a ruling from the
Internal Revenue Service that the Plan qualifies under section
401(a) of the Internal Revenue Code of 1986 (the "Code"). The
plan as amended and that the related Trust is exempt from
Federal income taxes under Section 501(a) of the Code. The
Company reserves the right to make any amendment necessary to
maintain the qualification of the Plan and Trust.
NOTES TO FINANCIAL STATEMENTS (continued)
Under current Federal tax law, it is expected that a
participant will not be subject to income taxes on amounts
contributed by the Company or on income accrued to the
participant's account until part or all of the participant's
account is withdrawn or distributed. Gains and losses on the
sale of securities within a participant's account are not
reportable for income tax purposes unless withdrawn.
7. Unrealized Appreciation on Investments:
Unrealized appreciation on investments held at December
31, 1995, expressed in thousands of dollars, amounted to
$1,381 and has been reflected in the statement of changes in
net assets available for benefits (with fund information) for
the period. Such amounts were computed in a manner similar to
that discussed in Note 5 for computing realized income from
sales, redemptions and distributions to securities.
8. Withdrawals and Forfeitures:
Distributions to participants are reported at market
value at the date of distribution. For the year ended December
31, 1995, the balance of participants' accounts withdrawn,
expressed in thousands of dollars, totaled $564. Disbursements
in cash or securities in settlement of such accounts amounted
to $537. The difference of $27 represented the total amount of
Company contributions forfeited during that period.