Exhibit 1.2
RJR NABISCO, INC.
DEFINED CONTRIBUTION MASTER TRUST
INDEPENDENT AUDITORS' REPORT, FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 1993 AND 1992, AND SUPPLEMENTAL SCHEDULES
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
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TABLE OF CONTENTS
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Page
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Independent Auditors' Report 1
Financial Statements:
Statements of Net Assets as of December 31, 1993 and 1992 2-3
Statements of Changes in Net Assets for the Years
Ended December 31, 1993 and 1992 4-5
Notes to Financial Statements 6-13
Supplemental Schedules:
Schedule of Assets Held for Investment Purposes as of
December 31, 1993 14-21
Schedule of Reportable Transactions for the Year Ended
December 31, 1993 22-35
INDEPENDENT AUDITORS' REPORT
- - ----------------------------
Board of Directors,
RJR Nabisco, Inc.:
We have audited the accompanying statements of net assets of the RJR Nabisco,
Inc. Defined Contribution Master Trust (the "Trust") as of December 31, 1993 and
1992, and the related statements of changes in net assets for the years then
ended. These financial statements are the responsibility of RJR Nabisco, Inc.
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, such financial statements present fairly, in all material
respects, the net assets of the Trust as of December 31, 1993 and 1992, and the
changes in its net assets 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 supplemental schedules of (1) assets
held for investment purposes as of December 31, 1993 and (2) reportable
transactions for the year ended December 31, 1993 are presented for the purpose
of additional analysis and are not a required part of the basic financial
statements but are supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. The Fund Information in the statements
of net assets and the statements of changes in net assets is presented for
purposes of additional analysis rather than to present the statements of net
assets and the statements of changes in net assets of each fund. The
supplemental schedules 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.
June 24, 1994
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
STATEMENT OF NET ASSETS
AS OF DECEMBER 31, 1993
- - ---------------------------------------------------------------------------------------------------------------
Fund Information
---------------------------------------------------------------------
Growth Real General Interest
Stock Estate Stock Money Market Income
Fund Fund Fund Fund Fund
----------- ----------- ----------- ----------- -----------
ASSETS
Investments at fair value - Notes 2 & 3
Real estate funds $ -- $ 8,749,673 $ -- $ -- $ --
Short-term investments 1,043,610 52,012 1,267,864 12,098,400 28,299,742
Unallocated insurance contracts -- -- -- -- 446,272,955
Equity investment funds 174,798,915 -- 357,698,005 -- --
RJR Nabisco Holdings Corp.
Common Stock -- -- -- -- --
RJR Nabisco Holdings Corp.
Preferred Stock -- -- -- -- --
RJR Nabisco Holdings Corp.
ESOP Convertible Preferred Stock -- -- -- -- --
Bristol-Myers Squibb Co. Common Stock -- -- -- -- --
Corporate Mortgage Pools -- -- -- -- 21,046
Treasury Obligations -- -- -- -- 8,005,040
Bond investment funds -- -- -- -- 150,344,174
Loans to participants -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Investments 175,842,525 8,801,685 358,965,869 12,098,400 632,942,957
----------- ----------- ----------- ----------- -----------
Receivables
Net investment income 959 48 1,596 89 2,266,704
Employee contributions -- 19,771 1,084,501 276,944 576,863
Employer contributions -- -- -- 39,443 --
----------- ----------- ----------- ----------- -----------
Total receivables 959 19,819 1,086,097 316,476 2,843,567
----------- ----------- ----------- ----------- -----------
TOTAL ASSETS 175,843,484 8,821,504 360,051,966 12,414,876 635,786,524
----------- ----------- ----------- ----------- -----------
LIABILITIES
Note payable to RJR Nabisco
Holdings Corp. - Note 6 -- -- -- -- --
Interest payable on ESOP loan - Note 6 -- -- -- -- --
----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Net interfund transfers (261,945) (200,366) (851,053) (39,627) (1,164,102)
----------- ----------- ----------- ----------- -----------
NET ASSETS $ 175,581,539 $ 8,621,138 $ 359,200,913 $ 12,375,249 $ 634,622,422
=========== =========== =========== =========== ===========
See notes to financial statements.
-2A-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
STATEMENT OF NET ASSETS
AS OF DECEMBER 31, 1993 - CONTINUED
- - --------------------------------------------------------------------------------------------------------------------
Fund Information
--------------------------------------------------------------------------
Government Stock Bristol-Myers Preferred Common
Securities Index Stock Stock Stock
Fund Fund Fund Fund Fund
----------- ----------- ----------- ----------- ----------
ASSETS
Investments at fair value - Notes 2 & 3
Real estate funds $ -- $ -- $ -- $ -- $ --
Short-term investments 10,103,328 6,881 -- -- 1,478,403
Unallocated insurance contracts -- -- -- -- --
Equity investment funds 22,366 8,872,279 -- -- --
RJR Nabisco Holdings Corp.
Common Stock -- -- -- -- 82,893,245
RJR Nabisco Holdings Corp.
Preferred Stock -- -- -- -- --
RJR Nabisco Holdings Corp.
ESOP Convertible Preferred Stock -- -- -- -- --
Bristol-Myers Squibb Co. Common Stock -- -- -- -- --
Corporate Mortgage Pools -- -- -- -- --
Treasury Obligations -- -- -- -- --
Bond investment funds -- -- -- -- --
Loans to participants -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Investments 10,125,694 8,879,160 -- -- 84,371,648
----------- ----------- ----------- ----------- -----------
Receivables
Net investment income 2,858 94 -- -- 3,430
Employee contributions -- 313,156 -- -- 581,355
Employer contributions -- 34,992 -- -- 16,544
----------- ----------- ----------- ----------- -----------
Total receivables 2,858 348,242 -- -- 601,329
----------- ----------- ----------- ----------- -----------
TOTAL ASSETS 10,128,552 9,227,402 -- -- 84,972,977
----------- ----------- ----------- ----------- -----------
LIABILITIES
Note payable to RJR Nabisco
Holdings Corp. - Note 6 -- -- -- -- --
Interest payable on ESOP loan - Note 6 -- -- -- -- --
----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Net interfund transfers (15,013) (17,400) -- -- 595,871
----------- ----------- ----------- ----------- -----------
NET ASSETS $ 10,113,539 $ 9,210,002 $ -- $ -- $ 85,568,848
=========== =========== =========== =========== ===========
See notes to financial statements.
-2B-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
STATEMENT OF NET ASSETS
AS OF DECEMBER 31, 1993 - CONTINUED
- - ---------------------------------------------------------------------------------------------------------------
Fund Information
----------------------------------------------------
Loan Matching Stock Fund
Fund Allocated Unallocated Total
----------- ----------- ----------- -----------
ASSETS
Investments at fair value - Notes 2 & 3
Real estate funds $ -- $ -- $ -- $ 8,749,673
Short-term investments -- 191 -- 54,350,431
Unallocated insurance contracts -- -- -- 446,272,955
Equity investment funds -- -- -- 541,391,565
RJR Nabisco Holdings Corp.
Common Stock -- 69,089 -- 82,962,334
RJR Nabisco Holdings Corp.
Preferred Stock -- -- -- --
RJR Nabisco Holdings Corp.
ESOP Convertible Preferred Stock -- 52,402,096 196,781,488 249,183,584
Bristol-Myers Squibb Co. Common Stock -- -- -- --
Corporate Mortgage Pools -- -- -- 21,046
Treasury Obligations -- -- -- 8,005,040
Bond investment funds -- -- -- 150,344,174
Loans to participants 29,876,423 -- -- 29,876,423
----------- ----------- ----------- -------------
Total Investments 29,876,423 52,471,376 196,781,488 1,571,157,225
----------- ----------- ----------- -------------
Receivables
Net investment income 4,335 2,048,584 7,686,777 12,015,474
Employee contributions -- -- -- 2,852,590
Employer contributions -- -- -- 90,979
----------- ----------- ----------- -------------
Total receivables 4,335 2,048,584 7,686,777 14,959,043
----------- ----------- ----------- -------------
TOTAL ASSETS 29,880,758 54,519,960 204,468,265 1,586,116,268
----------- ----------- ----------- -------------
LIABILITIES
Note payable to RJR Nabisco
Holdings Corp. - Note 6 -- -- 210,811,685 210,811,685
Interest payable on ESOP loan - Note 6 -- -- 8,715,285 8,715,285
----------- ----------- ----------- -------------
TOTAL LIABILITIES -- -- 219,526,970 219,526,970
----------- ----------- ----------- -------------
Net interfund transfers 2,035,221 (81,586) -- --
----------- ----------- ----------- -------------
NET ASSETS $ 31,915,979 $ 54,438,374 $ (15,058,705)$ 1,366,589,298
=========== =========== =========== =============
See notes to financial statements.
-2C-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
STATEMENT OF NET ASSETS
AS OF DECEMBER 31, 1992
- - -------------------------------------------------------------------------------------------------------------
Fund Information
-----------------------------------------------------------------------
Growth Real General Interest
Stock Estate Stock Money Market Income
Fund Fund Fund Fund Fund
----------- ----------- ----------- ----------- -------------
ASSETS
Investments at fair value -
Notes 2 & 3
Real estate funds $ -- $ 10,110,263 $ -- $ -- $ --
Short-term investments 177,387 122,515 256,596 10,966,950 20,968,332
Unallocated insurance
contracts -- -- -- -- 448,477,423
Equity investment funds 159,930,462 -- 307,653,297 -- --
RJR Nabisco Holdings Corp.
Common Stock -- -- -- -- --
RJR Nabisco Holdings Corp.
Preferred Stock -- -- -- -- --
RJR Nabisco Holdings Corp.
ESOP Convertible
Preferred Stock -- -- -- -- --
Bristol-Myers Squibb Co.
Common Stock -- -- -- -- --
Federal Agency CMOS -- -- -- -- 18,295,300
Corporate Mortgage Pools -- -- -- -- 64,877,320
Treasury Obligations -- -- -- -- 60,108,170
Loans to participants -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Investments 160,107,849 10,232,778 307,909,893 10,966,950 612,726,545
----------- ----------- ----------- ----------- -----------
Receivables
Net investment income 630 298 789 305 3,953,274
Employee contributions 573,733 49,979 709,564 167,702 948,302
Employer contributions -- -- -- 42,737 --
Due from trustee for sale
of investments -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total receivables 574,363 50,277 710,353 210,744 4,901,576
----------- ----------- ----------- ----------- -----------
TOTAL ASSETS 160,682,212 10,283,055 308,620,246 11,177,694 617,628,121
----------- ----------- ----------- ----------- -----------
LIABILITIES
Note payable to RJR Nabisco
Holdings Corp. - Note 6 -- -- -- -- --
Interest payable on ESOP loan -
Note 6 -- -- -- -- --
Due to trustee for purchase
of investments -- -- -- -- --
----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Net interfund transfers (410,800) (152,162) (866,036) 392 (1,133,889)
----------- ----------- ----------- ----------- -----------
NET ASSETS $ 160,271,412 $ 10,130,893 $ 307,754,210 $ 11,178,086 $ 616,494,232
=========== =========== =========== =========== ===========
See notes to financial statements.
-3A-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
STATEMENT OF NET ASSETS
AS OF DECEMBER 31, 1992 - CONTINUED
- - ----------------------------------------------------------------------------------------------------------------------
Fund Information
--------------------------------------------------------------------------------
Government Stock Bristol-Myers Preferred Common
Securities Index Stock Stock Stock
Fund Fund Fund Fund Fund
----------- ----------- ----------- ----------- ----------
ASSETS
Investments at fair value - Notes 2 & 3
Real estate funds $ -- $ -- $ -- $ -- $ --
Short-term investments 108,475 99,996 112 52,680 2,014,456
Unallocated insurance contracts -- -- -- -- --
Equity investment funds 5,034,108 6,445,494 -- -- --
RJR Nabisco Holdings Corp.
Common Stock -- -- -- -- 79,417,339
RJR Nabisco Holdings Corp.
Preferred Stock -- -- -- 2,202,441 --
RJR Nabisco Holdings Corp.
ESOP Convertible Preferred Stock -- -- -- -- --
Bristol-Myers Squibb Co. Common Stock -- -- 562,706 -- --
Federal Agency CMOS -- -- -- -- --
Corporate Mortgage Pools -- -- -- -- --
Treasury Obligations -- -- -- -- --
Loans to participants -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Investments 5,142,583 6,545,490 562,818 2,255,121 81,431,795
----------- ----------- ----------- ----------- -----------
Receivables
Net investment income 13,565 234 1 46,114 4,010
Employee contributions 124,691 125,397 -- -- 649,413
Employer contributions -- 25,512 -- -- 13,587
Due from trustee for sale
of investments -- -- 1,357,434 -- --
----------- ----------- ----------- ----------- -----------
Total receivables 138,256 151,143 1,357,435 46,114 667,010
----------- ----------- ----------- ----------- -----------
TOTAL ASSETS 5,280,839 6,696,633 1,920,253 2,301,235 82,098,805
----------- ----------- ----------- ----------- -----------
LIABILITIES
Note payable to RJR Nabisco
Holdings Corp. - Note 6 -- -- -- -- --
Interest payable on ESOP loan - Note 6 -- -- -- -- --
Due to trustee for purchase
of investments -- -- -- -- 1,279,690
----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES -- -- -- -- 1,279,690
----------- ----------- ----------- ----------- -----------
Net interfund transfers (3,752) 4,601 (81,076) (29,687) 925,413
----------- ----------- ----------- ----------- -----------
NET ASSETS $ 5,277,087 $ 6,701,234 $ 1,839,177 $ 2,271,548 $ 81,744,528
=========== =========== =========== =========== ===========
See notes to financial statements.
-3B-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
STATEMENT OF NET ASSETS
AS OF DECEMBER 31, 1992 - CONTINUED
- - -------------------------------------------------------------------------------------------------------------
Fund Information
------------------------------------------------------
Loan Matching Stock Fund
Fund Allocated Unallocated Total
----------- ----------- ----------- ----------
ASSETS
Investments at fair value - Notes 2 & 3
Real estate funds $ -- $ -- $ -- $ 10,110,263
Short-term investments -- -- -- 34,767,499
Unallocated insurance contracts -- -- -- 448,477,423
Equity investment funds -- -- -- 479,063,361
RJR Nabisco Holdings Corp.
Common Stock -- 12,580 -- 79,429,919
RJR Nabisco Holdings Corp.
Preferred Stock -- -- -- 2,202,441
RJR Nabisco Holdings Corp.
ESOP Convertible Preferred Stock -- 26,052,832 223,947,168 250,000,000
Bristol-Myers Squibb Co. Common Stock -- -- -- 562,706
Federal Agency CMOS -- -- -- 18,295,300
Corporate Mortgage Pools -- -- -- 64,877,320
Treasury Obligations -- -- -- 60,108,170
Loans to participants 23,674,814 -- -- 23,674,814
----------- ----------- ----------- -------------
Total Investments 23,674,814 26,065,412 223,947,168 1,471,569,216
----------- ----------- ----------- -------------
Receivables
Net investment income 4,030 1,017,692 8,747,936 13,788,878
Employee contributions -- -- -- 3,348,781
Employer contributions -- -- -- 81,836
Due from trustee for sale
of investments -- -- -- 1,357,434
----------- ----------- ----------- -------------
Total receivables 4,030 1,017,692 8,747,936 18,576,929
----------- ----------- ----------- -------------
TOTAL ASSETS 23,678,844 27,083,104 232,695,104 1,490,146,145
----------- ----------- ----------- -------------
LIABILITIES
Note payable to RJR Nabisco
Holdings Corp. - Note 6 -- -- 229,012,712 229,012,712
Interest payable on ESOP loan - Note 6 -- -- 15,015,296 15,015,296
Due to trustee for purchase
of investments -- -- -- 1,279,690
----------- ----------- ----------- -------------
TOTAL LIABILITIES -- -- 244,028,008 245,307,698
----------- ----------- ----------- -------------
Net interfund transfers 1,787,427 (40,431) -- --
----------- ----------- ----------- -------------
NET ASSETS $ 25,466,271 $ 27,042,673 $ (11,332,904) $1,244,838,447
=========== =========== =========== =============
See notes to financial statements.
-3C-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1993
- - -------------------------------------------------------------------------------------------------------------
Fund Information
-----------------------------------------------------------------------
Growth Real General Interest
Stock Estate Stock Money Market Income
Fund Fund Fund Fund Fund
----------- ----------- ----------- ----------- -----------
MASTER TRUST INCOME / (LOSS)
Net appreciation/(depreciation) in
fair value of investments - Note3 $9,173,988 $ 230,547 $ 36,352,032 $ -- $ 882,262
Interest and dividends, net of
administrative fees 3,804,015 (249,569) 12,269,821 281,081 38,702,856
----------- ----------- ----------- ----------- -----------
TOTAL MASTER TRUST INCOME/(LOSS) 12,978,003 (19,022) 48,621,853 281,081 39,585,118
----------- ----------- ----------- ----------- -----------
CONTRIBUTIONS
Employee 13,613,852 829,134 19,750,710 2,650,380 26,957,679
Employer 152,085 9,692 229,405 398,040 344,879
----------- ----------- ----------- ----------- -----------
TOTAL CONTRIBUTIONS 13,765,937 838,826 19,980,115 3,048,420 27,302,558
----------- ----------- ----------- ----------- -----------
ALLOCATION OF ESOP SHARES - NOTE 6 -- -- -- -- --
DEDUCTIONS
Forfeitures -- -- -- -- --
Allocation of ESOP shares -- -- -- -- --
Employee withdrawals - Note 4 7,176,421 600,937 16,667,540 1,376,488 41,190,750
Interest on ESOP loan - Note 6 -- -- -- -- --
----------- ----------- ----------- ----------- -----------
TOTAL DEDUCTIONS 7,176,421 600,937 16,667,540 1,376,488 41,190,750
----------- ----------- ----------- ----------- -----------
Net interfund transfers (4,257,392) (1,728,622) (232,714) (239,703) (7,624,505)
----------- ----------- ----------- ----------- -----------
Net interplan transfers -- -- 48,251 (55,793) 55,793
----------- ----------- ----------- ----------- -----------
Transfers from the Trust - Note 5 -- -- (303,262) (460,354) (24)
----------- ----------- ----------- ----------- -----------
Net increase (decrease) 15,310,127 (1,509,755) 51,446,703 1,197,163 18,128,190
NET ASSETS AT BEGINNING OF YEAR 160,271,412 10,130,893 307,754,210 11,178,086 616,494,232
----------- ----------- ----------- ----------- -----------
NET ASSETS AT END OF YEAR $ 175,581,539 $ 8,621,138 $ 359,200,913 $ 12,375,249 $ 634,622,422
=========== =========== =========== =========== ===========
See notes to financial statements.
-4A-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1993 - Continued
- - -------------------------------------------------------------------------------------------------------------------
Fund Information
-----------------------------------------------------------------------------
Government Stock Bristol-Myers Preferred Common
Securities Index Stock Stock Stock
Fund Fund Fund Fund Fund
----------- ----------- ----------- ----------- -----------
MASTER TRUST INCOME / (LOSS)
Net appreciation/(depreciation) in
fair value of investments - Note 3 $ -- $ 426,785 $ (22,315)$ (232,322)$ (17,335,826)
Interest and dividends, net of
administrative fees 241,678 228,112 16,670 26,283 (14,076)
----------- ----------- ----------- ----------- -----------
TOTAL MASTER TRUST INCOME/(LOSS) 241,678 654,897 (5,645) (206,039) (17,349,902)
----------- ----------- ----------- ----------- -----------
CONTRIBUTIONS
Employee 2,760,194 2,710,842 -- -- 13,154,664
Employer 30,739 273,872 -- -- 279,303
----------- ----------- ----------- ----------- -----------
TOTAL CONTRIBUTIONS 2,790,933 2,984,714 -- -- 13,433,967
----------- ----------- ----------- ----------- -----------
ALLOCATION OF ESOP SHARES - NOTE 6 -- -- -- -- --
DEDUCTIONS
Forfeitures -- -- -- -- --
Allocation of ESOP shares -- -- -- -- --
Employee withdrawals - Note 4 884,102 632,020 18,850 26,087 3,195,586
Interest on ESOP loan - Note 6 -- -- -- -- --
----------- ----------- ----------- ----------- -----------
TOTAL DEDUCTIONS 884,102 632,020 18,850 26,087 3,195,586
----------- ----------- ----------- ----------- -----------
Net interfund transfers 2,687,943 (101,050) (1,814,682) (2,039,266) 10,952,101
----------- ----------- ----------- ----------- -----------
Net interplan transfers -- (48,251) -- -- --
----------- ----------- ----------- ----------- -----------
Transfers from the Trust - Note 5 -- (349,522) -- (156) (16,260)
----------- ----------- ----------- ----------- -----------
Net increase (decrease) 4,836,452 2,508,768 (1,839,177) (2,271,548) 3,824,320
NET ASSETS AT BEGINNING OF YEAR 5,277,087 6,701,234 1,839,177 2,271,548 81,744,528
----------- ----------- ----------- ----------- -----------
NET ASSETS AT END OF YEAR $ 10,113,539 $ 9,210,002 $ -- $ -- $ 85,568,848
=========== =========== =========== =========== ===========
See notes to financial statements.
-4B-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1993 - Continued
- - -------------------------------------------------------------------------------------------------------------
Fund Information
-----------------------------------------------------------------------
Loan Matching Stock Fund
Fund Allocated Unallocated Total
----------- ----------- ----------- -----------
MASTER TRUST INCOME / (LOSS)
Net appreciation/(depreciation) in
fair value of investments - Note 3 $ -- $ 22,367 $ -- $ 29,497,518
Interest and dividends, net of
administrative fees 2,069,721 3,607,379 15,888,887 76,872,858
----------- ----------- ----------- -------------
TOTAL MASTER TRUST INCOME/(LOSS) 2,069,721 3,629,746 15,888,887 106,370,376
----------- ----------- ----------- -------------
CONTRIBUTIONS
Employee -- -- -- 82,427,455
Employer -- -- 29,058,952 30,776,967
----------- ----------- ----------- -------------
TOTAL CONTRIBUTIONS -- -- 29,058,952 113,204,422
----------- ----------- ----------- -------------
ALLOCATION OF ESOP SHARES - NOTE 6 -- 27,608,766 -- 27,608,766
DEDUCTIONS
Forfeitures -- 59,346 -- 59,346
Allocation of ESOP shares -- -- 27,165,680 27,165,680
Employee withdrawals - Note 4 -- 1,224,881 -- 72,993,662
Interest on ESOP loan - Note 6 -- -- 24,084,447 24,084,447
----------- ----------- ----------- -------------
TOTAL DEDUCTIONS -- 1,284,227 51,250,127 124,303,135
----------- ----------- ----------- -------------
Net interfund transfers 4,379,987 (2,558,584) 2,576,487 --
----------- ----------- ----------- -------------
Net interplan transfers -- -- -- --
----------- ----------- ----------- -------------
Transfers from the Trust - Note 5 -- -- -- (1,129,578)
----------- ----------- ----------- -------------
Net increase (decrease) 6,449,708 27,395,701 (3,725,801) 121,750,851
NET ASSETS AT BEGINNING OF YEAR 25,466,271 27,042,673 (11,332,904) 1,244,838,447
----------- ----------- ----------- -------------
NET ASSETS AT END OF YEAR $ 31,915,979 $ 54,438,374 $ (15,058,705)$ 1,366,589,298
=========== =========== =========== =============
See notes to financial statements.
-4C-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1992
- - -----------------------------------------------------------------------------------------------------------
Fund Information
---------------------------------------------------------------------
Growth Real General Interest
Stock Estate Stock Money Market Income
Fund Fund Fund Fund Fund
----------- ----------- ----------- ----------- -----------
MASTER TRUST INCOME / (LOSS)
Net appreciation/(depreciation) in
fair value of investments - Note 3 $7,058,911 $ (385,135)$ 17,974,032 $ -- $ 1,686,346
Interest and dividends, net of
administrative fees 4,204,097 (398,602) 14,681,437 408,168 43,798,264
----------- ----------- ----------- ----------- -----------
TOTAL MASTER TRUST INCOME/(LOSS) 11,263,008 (783,737) 32,655,469 408,168 45,484,610
----------- ----------- ----------- ----------- -----------
CONTRIBUTIONS
Employee 13,794,686 1,060,703 18,657,380 1,784,481 29,680,042
Employer 132,132 9,457 198,444 413,414 302,485
----------- ----------- ----------- ----------- -----------
TOTAL CONTRIBUTIONS 13,926,818 1,070,160 18,855,824 2,197,895 29,982,527
----------- ----------- ----------- ----------- -----------
EMPLOYER ADVANCE -- -- -- -- --
----------- ----------- ----------- ----------- -----------
ALLOCATION OF ESOP SHARES -
NOTE 6 -- -- -- -- --
----------- ----------- ----------- ----------- -----------
DEDUCTIONS
Forfeitures -- -- -- -- --
Allocation of ESOP shares -- -- -- -- --
Employee withdrawals - Note 4 11,323,568 956,268 22,163,290 1,712,615 66,696,564
Interest on ESOP loan - Note 6 -- -- -- -- --
----------- ----------- ----------- ----------- -----------
TOTAL DEDUCTIONS 11,323,568 956,268 22,163,290 1,712,615 66,696,564
----------- ----------- ----------- ----------- -----------
Net interfund transfers (3,791,905) (2,690,080) (8,743,987) (175,040) (11,608,176)
----------- ----------- ----------- ----------- -----------
Net interplan transfers -- -- 7,282 (13,077) 13,077
----------- ----------- ----------- ----------- -----------
Net transfers from the Trust - Note 5 -- -- -- (1,948) --
----------- ----------- ----------- ----------- -----------
Net increase (decrease) 10,074,353 (3,359,925) 20,611,298 703,383 (2,824,526)
NET ASSETS AT BEGINNING OF YEAR 150,197,059 13,490,818 287,142,912 10,474,703 619,318,758
----------- ----------- ----------- ----------- -----------
NET ASSETS AT END OF YEAR $ 160,271,412 $ 10,130,893 $ 307,754,210 $ 11,178,086 $ 616,494,232
=========== =========== =========== =========== ===========
See notes to financial statements.
-5A-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1992 - Continued
- - -------------------------------------------------------------------------------------------------------------------
Fund Information
------------------------------------------------------------------------------
Government Stock Bristol-Myers Preferred Common
Securities Index Stock Stock Stock
Fund Fund Fund Fund Fund
----------- ----------- ----------- ----------- -----------
MASTER TRUST INCOME / (LOSS)
Net appreciation/(depreciation) in
fair value of investments - Note 3 $ -- $ 301,841 $ (786,296)$ (431,151)$ (20,315,710)
Interest and dividends, net of
administrative fees 85,004 199,977 76,561 225,028 (8,591)
----------- ----------- ----------- ----------- -----------
TOTAL MASTER TRUST INCOME/(LOSS) 85,004 501,818 (709,735) (206,123) (20,324,301)
----------- ----------- ----------- ----------- -----------
CONTRIBUTIONS
Employee 3,032,565 1,206,170 -- 14,214 12,358,837
Employer 20,025 237,734 -- 5,155 242,683
----------- ----------- ----------- ----------- -----------
TOTAL CONTRIBUTIONS 3,052,590 1,443,904 -- 19,369 12,601,520
----------- ----------- ----------- ----------- -----------
EMPLOYER ADVANCE -- -- -- -- --
----------- ----------- ----------- ----------- -----------
ALLOCATION OF ESOP SHARES -
NOTE 6 -- -- -- -- --
----------- ----------- ----------- ----------- -----------
DEDUCTIONS
Forfeitures -- -- -- -- --
Allocation of ESOP shares -- -- -- -- --
Employee withdrawals - Note 4 117,916 561,610 600,212 472,384 5,821,106
Interest on ESOP loan - Note 6 -- -- -- -- --
----------- ----------- ----------- ----------- -----------
TOTAL DEDUCTIONS 117,916 561,610 600,212 472,384 5,821,106
----------- ----------- ----------- ----------- -----------
Net interfund transfers 2,257,409 308,023 (529,688) (1,815,065) 12,537,763
----------- ----------- ----------- ----------- -----------
Net interplan transfers -- (7,282) -- -- --
----------- ----------- ----------- ----------- -----------
Net transfers from the Trust - Note 5 -- (7,711) -- (57) (1,884)
----------- ----------- ----------- ----------- -----------
Net increase (decrease) 5,277,087 1,677,142 (1,839,635) (2,474,260) (1,008,008)
NET ASSETS AT BEGINNING OF YEAR -- 5,024,092 3,678,812 4,745,808 82,752,536
----------- ----------- ----------- ----------- -----------
NET ASSETS AT END OF YEAR $ 5,277,087 $ 6,701,234 $ 1,839,177 $ 2,271,548 $ 81,744,528
=========== =========== =========== =========== ===========
See notes to financial statements.
-5B-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1992 - Continued
- - -----------------------------------------------------------------------------------------------------------
Fund Information
---------------------------------------------------------------------
Loan Matching Stock Fund
Fund Allocated Unallocated Total
----------- ----------- ----------- -----------
MASTER TRUST INCOME / (LOSS)
Net appreciation/(depreciation) in
fair value of investments - Note 3 $ -- $ 430 $ -- $ 5,103,268
Interest and dividends, net of
administrative fees 1,537,081 1,448,879 18,513,561 84,770,864
----------- ----------- ----------- -------------
TOTAL MASTER TRUST INCOME/(LOSS) 1,537,081 1,449,309 18,513,561 89,874,132
----------- ----------- ----------- -------------
CONTRIBUTIONS
Employee -- -- -- 81,589,078
Employer -- -- 29,197,361 30,758,890
----------- ----------- ----------- -------------
TOTAL CONTRIBUTIONS -- -- 29,197,361 112,347,968
----------- ----------- ----------- -------------
EMPLOYER ADVANCE -- -- 156,250 156,250
----------- ----------- ----------- -------------
ALLOCATION OF ESOP SHARES -
NOTE 6 -- 26,024,106 -- 26,024,106
----------- ----------- ----------- -------------
DEDUCTIONS
Forfeitures -- 17,595 -- 17,595
Allocation of ESOP shares -- -- 26,052,832 26,052,832
Employee withdrawals - Note 4 -- 389,781 -- 110,815,314
Interest on ESOP loan - Note 6 -- -- 30,538,736 30,538,736
----------- ----------- ----------- -------------
TOTAL DEDUCTIONS -- 407,376 56,591,568 167,424,477
----------- ----------- ----------- -------------
Net interfund transfers 14,274,112 (23,366) -- --
----------- ----------- ----------- -------------
Net interplan transfers -- -- -- --
----------- ----------- ----------- -------------
Net transfers from the Trust - Note 5 -- -- -- (11,600)
----------- ----------- ----------- -------------
Net increase (decrease) 15,811,193 27,042,673 (8,724,396) 60,966,379
NET ASSETS AT BEGINNING OF YEAR 9,655,078 -- (2,608,508) 1,183,872,068
----------- ----------- ----------- -------------
NET ASSETS AT END OF YEAR $ 25,466,271 $ 27,042,673 $ (11,332,904)$ 1,244,838,447
=========== =========== =========== =============
See notes to financial statements.
-5C-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- - -------------------------------------------------------------------------------
1. DESCRIPTION OF THE TRUST
RJR Nabisco, Inc. ("RJRN") and its direct or indirect subsidiaries sponsor
plans in the RJR Nabisco, Inc. Defined Contribution Master Trust (the
"Trust"). The Trust administers pooled assets and related liabilities
within various funds established on behalf of participating defined
contribution plans for employees of RJRN and affiliated companies. Each
participating plan owns an interest or an investment in the fair value of
net assets held in one or more of these investment funds. The trustee and
custodian of the Trust is Wachovia Bank of North Carolina, N.A.
("Wachovia"). Investment income and net appreciation (depreciation) in
fair value of investments during the year are allocated among participating
plans based on procedures established by the Trustee.
The Committee, acting under the direction of the Board of Directors (the
"Board") of Holdings, authorized and established the Nabisco Brands de
Puerto Rico, Inc. Capital Accumulation Plan effective September 1, 1992.
The Trust was amended to show this plan as a participating plan.
Effective January 1, 1992 the RJR Nabisco Capital Accumulation Plan, which
was comprised of the RJR Nabisco Capital Accumulation Program, the RJR
Employees' Savings and Investment Program, the Nabisco Brands Capital
Accumulation Program, the Planters LifeSavers Capital Accumulation Program
and the RJR Nabisco Employee Stock Ownership Program (the "ESOP"), was
renamed the RJR Capital Investment Plan (the "RJRN CIP"). The individual
programs thereunder will no longer exist as separate programs in order to
standardize plan provisions. Participant investment in the ESOP through
RJRN matching contributions to participants in the RJRN CIP began January
1, 1992. Beginning January 1, 1992, RJRN matching contributions to
participants were made in shares of RJR Nabisco Holdings Corp. ("Holdings")
ESOP convertible Preferred Stock in the Matching Stock Fund (See Note 6).
Participants employed by Winston-Salem Health Care Plan, Inc. and Winston-
Salem Dental Care Plan, Inc. as well as participants in other plans receive
employer contributions in cash in lieu of matching stock.
Effective July 30, 1993 the Trust was amended to allow the assets of the
Savings and Investment Plan for Employees of R.J. Reynolds Tobacco Company
in Puerto Rico and the Nabisco Brands de Puerto Rico Capital Accumulation
Plan (the "Puerto Rico Plans") to be held solely by Banco Popular de Puerto
Rico as trustee of the RJR Nabisco Puerto Rico Defined Contribution Master
Trust and Wachovia as trustee of the Trust shall no longer serve as co-
trustee. The RJR Employee Benefits Committee (the "Committee") directed
Banco Popular de Puerto Rico to appoint Wachovia as custodian for the
assets of the Puerto Rico Plans, to be invested in the same manner as the
assets of the other qualified defined contribution plans held by Wachovia
in the Trust subject to the investment direction of the Puerto Rico Plans'
participants. Thus, the Trust was also amended effective July 30, 1993 to
allow the commingling of the assets for investment purposes of the Trust
with assets of any plan established by RJRN or its affiliates, qualified
under Section 401(a) of the Internal Revenue Code or otherwise exempt from
taxation pursuant to ERISA, the assets of which are owned by another
trustee or custodian.
Information about the Trust agreement is available from the Committee.
-6-
NOTES TO FINANCIAL STATEMENTS - CONTINUED
- - -------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES
Valuation of Investments - All investments held by the Trust are valued at
fair value (except unallocated insurance contracts which are valued at
contract value) as follows. Securities which are traded on a national
securities exchange are valued at the last reported sales price on the last
business day of the plan year. Over-the-counter investments traded on the
NASDAQ and listed securities for which no sale was reported on the last
business day of the plan year are valued at the average of the last
reported bid and ask prices. All other over-the-counter investments
are valued at the last reported bid. The fair market value of real
estate is based on periodic independent appraisals. The fair market
value of fixed income investments is based on an institutional based
pricing system. Investment grade bonds are valued on a pricing system
based on treasury securities. The fair market value of the participation
units in common trust funds is based on quoted redemption value on the last
business day of the plan year.
Expenses - Expenses relating to the purchase or sale of investments are
included in the cost or deducted from the proceeds, respectively. Expenses
such as trustee, auditor, and Internal Revenue Service user fees are paid
directly from the Trust. During 1993, the Trust was amended to also allow
the payment of general plan recordkeeping expenses directly from the Trust.
Other expenses continue to be paid by RJRN.
3. INVESTMENTS
Under the provisions of the Trust, pooled assets may be invested in various
funds. The investment funds are as follows (See Note 8 for investment
option changes):
General Stock Fund Diversified fund of primarily common
stocks selected to achieve long-term
capital growth and current income.
Stock Index Fund Diversified fund of primarily common
stocks selected to achieve long-term
capital growth and current income.
Growth Stock Fund Diversified fund of common stocks and
other securities selected to achieve
significant capital gains.
Money Market Fund Money Market fund consisting of short-
term investments maturing in one
year or less, including bank certificates
of deposit, commercial paper and
short-term corporate debt obligations.
Real Estate Fund Pooled funds selected to achieve stable
long-term rates of return through direct
ownership of income producing properties
diversified by usage and location.
Common Stock Fund Common stock issued by Holdings.
Government Securities Fund Short-term U.S. Government Securities
that mature within one year, with a
maximum average maturity of 90 days
selected to maximize current income
that is consistent with the preservation
of capital and liquidity. This fund
was opened to participant contributions
commencing in 1992.
-7-
NOTES TO FINANCIAL STATEMENTS - CONTINUED
- - -------------------------------------------------------------------------------
3. INVESTMENTS - CONTINUED
Direct transfers between the Government Securities Fund and the Interest
Income Fund are not allowed due to restrictions in the investment contracts
in the Interest Income Fund. The Interest Income Fund for certain plans
within the Master Trust has been closed to new employee contributions, but
employees are allowed to transfer out of the funds. During 1993 the
Company liquidated the Preferred Stock Fund and Bristol-Myers Stock Fund
due to Securities and Exchange Commission trading rules and restrictions
and relatively light trading volume. The Matching Stock Fund is available
for RJRN matching contributions only and is not open to participant
contribution. The Loan Fund is a recordkeeping fund that holds employee
promissory notes. These funds hold assets as follows:
Preferred Stock Fund Cumulative convertible preferred stock
issued by Holdings and convertible into
Holdings common stock.
Interest Income Fund Contracts issued by insurance companies
or financial institutions as well as one
to three year investment grade fixed
income securities. Contracts are
diversified by size, maturity, quality
and interest rate.
Bristol-Myers Stock Fund Common stock of Bristol-Myers Squibb
Company that came into the LifeSavers
Savings Plan as a result of the 1989
conversion of Squibb Corporation Common
Stock.
Matching Stock Fund Holdings ESOP Convertible Preferred
Stock representing RJRN matching
contributions.
Loan Fund Participant borrowings from Trust plans
subject to requirements established by
the Committee.
During 1993 and 1992, the Trust's investments (including investments
bought, sold, as well as held during the year) appreciated (depreciated) in
fair value as follows:
-8-
NOTES TO FINANCIAL STATEMENTS - CONTINUED
- - --------------------------------------------------------------------------------------------------
3. INVESTMENTS - CONTINUED
YEAR ENDED DECEMBER 31, 1993 YEAR ENDED DECEMBER 31, 1992
------------------------------ -------------------------------
Net Appreciation Net Appreciation
(Depreciation) Fair (Depreciation) Fair
in Fair Value Value at in Fair Value Value at
During Year End of Year During Year End of Year
--------------- --------------- --------------- ---------------
GROWTH STOCK FUND
Equity investment funds $ 9,173,988 $ 174,798,915 $ 7,058,911 $ 159,930,462
Wachovia Bank of North Carolina,
N.A. Diversified Short-Term
Investment Fund -- 1,042,500 -- 177,386
Other Short-Term Investments -- 1,110 -- --
------------ ------------ ------------ ------------
9,173,988 175,842,525 7,058,911 160,107,848
------------ ------------ ------------ ------------
REAL ESTATE FUND
Real estate investment funds 230,547 8,749,673 (385,135) 10,110,263
Wachovia Bank of North Carolina,
N.A. Diversified Short-Term
Investment Fund -- 52,012 -- 122,515
------------ ------------ ------------ ------------
230,547 8,801,685 (385,135) 10,232,778
------------ ------------ ------------ ------------
GENERAL STOCK FUND
Equity investment funds 36,352,032 357,698,005 17,974,032 307,653,297
Wachovia Bank of North Carolina,
N.A. Diversified Short-Term
Investment Fund -- 1,266,484 -- 256,595
Other Short-Term Investments -- 1,380 -- --
------------ ------------ ------------ ------------
36,352,032 358,965,869 17,974,032 307,909,892
------------ ------------ ------------ ------------
MONEY MARKET FUND
Money market investment funds -- 12,089,655 -- 10,866,219
Wachovia Bank of North Carolina,
N.A. Diversified Short-Term
Investment Fund -- 8,745 -- 100,731
------------ ------------ ------------ ------------
-- 12,098,400 -- 10,966,950
------------ ------------ ------------ ------------
BRISTOL-MYERS STOCK FUND
Bristol-Myers Squibb Common Stock (22,315) -- (786,296) 562,706
Wachovia Bank of North Carolina,
N.A. Diversified Short-Term
Investment Fund -- -- -- 112
------------ ------------ ------------ ------------
(22,315) -- (786,296) 562,818
------------ ------------ ------------ ------------
INTEREST INCOME FUND
Guaranteed insurance contract -- 446,272,955 -- 448,477,423
Treasury Obligations 541,444 8,005,040 2,075,764 60,108,170
Federal Agency CMOs (97,635) -- 8,154 18,295,300
Corporate Mortgage Pools 669,823 21,046 (422,771) 64,877,320
Bond Investment Funds (231,370) 150,344,174 -- --
Wells Fargo Bank Money
Market Fund -- 84 -- --
Fisher Francis Trees & Watts
Short-Term Investment Fund -- -- -- 12,674,376
Wachovia Bank of North Carolina,
N.A. Diversified Short-Term
Investment Fund -- 28,285,509 -- 8,293,268
Other Short-Term Investments -- 14,149 25,199 688
------------ ------------ ------------ ------------
882,262 632,942,957 1,686,346 612,726,545
------------ ------------ ------------ ------------
-9-
NOTES TO FINANCIAL STATEMENTS - CONTINUED
- - --------------------------------------------------------------------------------------------------
3. INVESTMENTS - CONTINUED
YEAR ENDED DECEMBER 31, 1993 YEAR ENDED DECEMBER 31, 1992
------------------------------ -------------------------------
Net Appreciation Net Appreciation
(Depreciation) Fair (Depreciation) Fair
in Fair Value Value at in Fair Value Value at
During Year End of Year During Year End of Year
--------------- --------------- --------------- ---------------
COMMON STOCK FUND
RJR Nabisco Holdings Corp.
Common Stock $ (17,335,826)$ 82,893,245 $ (20,315,710)$ 79,417,339
Wachovia Bank of North Carolina,
N.A. Diversified Short-Term
Investment Fund -- 1,478,403 -- 2,014,456
------------ ------------ ------------ ------------
(17,335,826) 84,371,648 (20,315,710) 81,431,795
------------ ------------ ------------ ------------
PREFERRED STOCK FUND
RJR Nabisco Holdings Corp.
Cumulative Convertible
Preferred Stock (232,322) -- (434,756) 2,202,441
RJR Nabisco Holdings Corp.
Common Stock -- -- 3,605 --
Wachovia Bank of North Carolina,
N.A. Diversified Short-Term
Investment Fund -- -- -- 52,680
------------ ------------ ------------ ------------
(232,322) -- (431,151) 2,255,121
------------ ------------ ------------ ------------
STOCK INDEX FUND
Equity investment funds 426,785 8,872,279 301,841 6,445,494
Wachovia Bank of North Carolina,
N.A. Diversified Short-Term
Investment Fund -- 6,881 -- 99,996
------------ ------------ ------------ ------------
426,785 8,879,160 301,841 6,545,490
------------ ------------ ------------ ------------
MATCHING STOCK FUND
RJR Nabisco Holdings
Corp. ESOP Convertible
Preferred Stock -- 249,183,584 -- 250,000,000
RJR Nabisco Holdings Corp.
Common Stock 22,367 69,089 430 12,580
Other Short-Term Investments -- 191 -- --
------------ ------------ ------------ ------------
22,367 249,252,864 430 250,012,580
------------ ------------ ------------ ------------
GOVERNMENT SECURITIES FUND
Equity investment funds -- 22,366 -- 5,034,108
Wachovia Bank of North Carolina,
N.A. Diversified Short-Term
Investment Fund -- 10,100,939 -- 108,474
Other Short-Term Investments -- 2,389 -- --
------------ ------------ ------------ ------------
-- 10,125,694 -- 5,142,582
------------ ------------ ------------ ------------
LOAN FUND
Loans to participants -- 29,876,423 -- 23,674,814
------------ ------------ ------------ ------------
-- 29,876,423 -- 23,674,814
------------ ------------ ------------ ------------
TOTAL $ 29,497,518 $ 1,571,157,225 $ 5,103,268 $ 1,471,569,213
============ ============ ============ ============
-10-
NOTES TO FINANCIAL STATEMENTS - CONTINUED
- - -------------------------------------------------------------------------------------------------------------------------
3. INVESTMENTS - CONTINUED
Individual investments that represent 5% or more of the Trust's fair value
of net assets as of December 31, 1993 and 1992, are as follows:
DECEMBER 31, 1993 DECEMBER 31, 1992
----------------- -----------------
IDENTITY OF ISSUE,
BORROWER, LESSOR OR
SIMILAR PARTY DESCRIPTION OF DESCRIPTION OF
------------- INVESTMENT FAIR VALUE INVESTMENT FAIR VALUE
---------- ---------- ---------- ----------
Equity investment funds:
Vanguard Equity Income
Fund * * 7,592,638 shares $98,248,738
Vanguard Institutional Index
Fund 8,354,275 shares $371,013,370 3,634,449 shares 151,738,275
Windsor Fund * * 8,179,674 shares 103,636,471
Vanguard Trust Extended
Market Portfolio 8,817,589 shares 170,355,829 * *
Prudential Life Insurance Co. * * Interest rates 64,810,554
Guaranteed Investment ranging from 8.4% to
Contracts 9.04% with maturity
dates ranging from
4/1/93 to 1/1/97
Wells Fargo 1-3 Year 3,424,399 units 150,344,174 * *
Government Bond Index
Fund
CIGNA Guaranteed Interest rates 88,756,000 Interest rates 103,554,557
Investment Contracts ranging from 7.89% to ranging from 7.89% to
9.91% with maturity 9.91% with maturity
dates ranging from dates ranging from
12/31/93 to 10/1/97 12/31/93 to 4/1/95
Bankers Trust Co. Interest rates 72,241,880 Interest rates 72,909,721
GIC Contracts ranging from 7.66% to ranging from 7.66% to
8.85% with maturity 8.85% with maturity
dates ranging from dates ranging from
6/10/95 to 12/15/96 6/10/95 to 12/15/96
RJR Nabisco Holdings Corp. 12,763,436 shares, 82,962,334 9,342,503 shares, par 79,429,919
Common Stock par value $.01 per value $.01 per share
share.
ESOP Preferred Stock 15,573,974 shares, 249,183,584 15,625,000 shares, 250,000,000
stated value $16.00, stated value $16.00,
par value $.01 per par value $.01 per
share share
*Investment represents less than 5% of the Trusts net assets.
-11-
NOTES TO FINANCIAL STATEMENTS - CONTINUED
- - -------------------------------------------------------------------------------
4. EMPLOYEE WITHDRAWALS
At December 31, 1993 and 1992, employee withdrawal requests of $4,694,153
and $3,478,790, respectively, were not accrued in accordance with the AICPA
Audit and Accounting Guide "Audits of Employee Benefit Plans".
5. NET TRANSFERS FROM THE TRUST
During 1993 net transfers of assets of $1,129,578 were made from the Trust
due to the segregation of the Pacific Hawaiian Products Company Profit
Sharing and Retirement Plan, the divestiture of the Merckens and cereal
businesses.
During 1992 net transfers of assets of $11,600 were made from the Trust due
to the divestiture of Merckens.
6. MATCHING STOCK
On April 10, 1991, the ESOP borrowed $250 million (the "ESOP Loan") from
Holdings, an indirect parent of RJRN, to purchase 15,625,000 shares of
Holdings ESOP Convertible Preferred Stock, stated value $16.00 per share
(the "ESOP Preferred Stock"). The market value of the ESOP Preferred Stock
is the greater of the stated value of the ESOP Preferred Stock or the
market value of Holdings common stock (the "ESOP market value"). The ESOP
Loan has a weighted average interest rate of 8.2% effective January 5, 1993
and 12.9% during 1992 and matures on July 2, 2016. The ESOP Preferred
Stock is convertible into 15,625,000 shares of Holdings' common stock,
subject to adjustment in certain events, and bears cumulative dividends at
a rate of 7.8125% of stated value per annum at least until April 10, 1999
and is payable semi-annually in arrears commencing January 2, 1992, when,
as and if declared by the Board. The ESOP Preferred Stock represents an
unallocated investment of the Plan which is allocated to individual
participants' accounts as the ESOP Loan is repaid. The unallocated ESOP
Preferred Stock is collateral for the ESOP Loan. The Plan obtains funds to
repay the ESOP Loan primarily from dividends on the ESOP Preferred Stock
and RJRN matching contributions. The ESOP Preferred Stock is redeemable at
the option of Holdings, in whole or in part, at any time on or after April
10, 1999, at an initial optional redemption price of $16.25 per share. The
initial optional redemption price declines thereafter on an annual basis in
the amount of $.125 a year to $16 per share on April 10, 2001, plus accrued
and unpaid dividends.
On December 17, 1992, the Board declared a dividend of $0.625 on each share
of ESOP Preferred Stock issued and outstanding as of that date. The
financial statements reflect the accrued dividend of $9,765,625 which was
paid on January 4, 1993. In addition, interest expense of $15,015,296 was
accrued at December 31, 1992 on the ESOP loan.
On December 17, 1993, the Board declared a dividend of $0.625 on each share
of ESOP Preferred Stock issued and outstanding as of that date. The
financial statements reflect the accrued dividend of $9,735,361 which was
paid on January 3, 1994. In addition, interest expense of $8,715,285 was
accrued at December 31, 1993 on the ESOP Loan.
-12-
NOTES TO FINANCIAL STATEMENTS - CONTINUED
- - -------------------------------------------------------------------------------
6. MATCHING STOCK - CONTINUED
Shares of unallocated ESOP Preferred Stock are held as plan assets which
have not been released for allocation to the individual participant
accounts. Dividends on the ESOP Preferred Stock and contributions from
RJRN are used to service the ESOP Loan. When the ESOP Loan is serviced,
shares become available for allocation to individual participants'
accounts. Allocation of released shares are net of dividends on the ESOP
Preferred Stock, sales of shares for distribution and forfeitures.
During 1993, an ESOP Treasury Suspense Account was established to hold
shares of ESOP Preferred Stock resulting from sales for distribution and
forfeitures. The shares are held in the account pending transfer to RJRN
for retirement.
Any participant who is entitled to receive a distribution shall, at the
participant's option, receive either cash equal to the ESOP market value or
a number of shares of Holdings common stock with a value equal to the ESOP
market value.
7. SALE OF BUSINESS AND TRANSFER OF ASSETS
An Asset Purchase Agreement (the "Agreement") dated November 13, 1992 among
Kraft General Foods, Inc. and Nabisco, Inc. and Nabisco Cereals, Inc. was
entered into to provide in part for the sale of RJRN's cereal business.
Based upon the terms of the Agreement, transferred employees who are
participants of the RJR Nabisco Capital Investment Plan and the Nabisco
Brands Employee Savings Plan (the "Nabisco Plans") shall be fully vested
and active participation in these plans shall cease as of the closing date.
Additionally, the Nabisco Plans were amended to provide for the direct
trustee-to-trustee transfer of assets representing the full account
balances of transferred employees. During 1993 net assets of $853,990 were
transferred from the Plan to Kraft General Foods, Inc. in accordance with
the terms of the Agreement.
8. SUBSEQUENT EVENTS
New investment options became available for participants' future
contributions effective January 1, 1994 and for accumulated balances
effective March 1, 1994. Three current investment options will remain:
the Interest Income Fund, the Real Estate Fund and the Common Stock
Fund. The new investment options available include the U.S. Stock
Index Fund, the International Stock Index Fund and the Balanced
Funds. The U.S. Stock Index Fund replaces the General Stock and
Growth Stock Funds. As of January 1, 1994, all contributions to
these discontinued funds will be directed to the U.S. Stock
Index Fund. Balances remaining in these funds on December 31, 1993
will be automatically transferred to the U.S. Stock Index Fund on January
1, 1994. The Government Securities Fund is discontinued and as of
January 1, 1994 all contributions to this fund will be directed to the
Interest Income Fund. Balances remaining in the Government Securities Fund
on December 31, 1993 will be automatically transferred to the Interest
Income Fund on January 1, 1994.
- 13 -
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1993
- - --------------------------------------------------------------------------------------------------------
DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE,
BORROWER, LESSOR RATE OF INTEREST FAIR
OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
---------------- --------------------- ---- -----
GROWTH STOCK FUND
- - -----------------
Equity investment funds:
Vanguard Trust Extended
Market Portfolio 2,894,600 shares $52,256,561 $55,923,672
Vanguard Institutional Index
Fund 2,676,767 shares 108,121,546 118,875,243
Wachovia Bank of North Carolina,
N.A. Diversified Short-Term
Investment Fund 1,042,500 units 1,042,500 1,042,500
Other Short-Term Investments 1,110 1,110
-------------- --------------
TOTAL GROWTH STOCK FUND 161,421,717 175,842,525
-------------- --------------
REAL ESTATE FUND
- - ----------------
Real estate investment funds:
The Equitable Preferred Property
Fund 8,300 units 9,217,939 8,749,673
Wachovia Bank of North Carolina,
N.A. Diversified Short-Term
Investment Fund 52,012 units 52,012 52,012
-------------- --------------
TOTAL REAL ESTATE FUND 9,269,951 8,801,685
-------------- --------------
-14-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1993
- - --------------------------------------------------------------------------------------------------------
DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE,
BORROWER, LESSOR RATE OF INTEREST FAIR
OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
---------------- --------------------- ---- -----
GENERAL STOCK FUND
- - ------------------
Equity investment funds:
Vanguard Institutional Index
Fund 5,477,727 shares $209,715,686 $243,265,848
Vanguard Trust Extended
Market Portfolio 5,922,989 shares 115,622,910 114,432,157
Wachovia Bank of North Carolina,
N.A. Diversified Short-Term
Investment Fund 1,266,484 units 1,266,484 1,266,484
Other Short-Term Investments 1,380 1,380
-------------- --------------
TOTAL GENERAL STOCK FUND 326,606,460 358,965,869
-------------- --------------
MONEY MARKET FUND
- - -----------------
Money market investment funds:
Vanguard Institutional
Portfolios 12,089,655 units 12,089,655 12,089,655
Wachovia Bank of North Carolina,
N.A. Diversified Short-Term
Investment Fund 8,745 units 8,745 8,745
-------------- --------------
TOTAL MONEY MARKET FUND 12,098,400 12,098,400
-------------- --------------
-15-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1993
- - --------------------------------------------------------------------------------------------------------
DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE,
BORROWER, LESSOR RATE OF INTEREST FAIR
OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
---------------- --------------------- ---- -----
STOCK INDEX FUND
- - ----------------
Equity investment funds:
Vanguard Institutional Index
Fund 199,781 shares $7,363,048 $8,872,279
Wachovia Bank of North Carolina,
N.A. Diversified Short-Term
Investment Fund 6,881 units 6,881 6,881
-------------- --------------
TOTAL STOCK INDEX FUND 7,369,929 8,879,160
-------------- --------------
INTEREST INCOME FUND
- - --------------------
Guaranteed Insurance Contracts:
Executive Life Insurance Co. $6,058,908 principal
GIC Contract #01300 9.22% matures 07/01/93 6,058,908 6,058,908
CIGNA Contract FM22001A $12,736,358 principal
88-89 9.29% matures 06/30/94 12,736,358 12,736,358
CIGNA Contract FM22001C $18,604,345 principal
(1988 Supplemental) 9.91% matures 12/31/93 18,604,345 18,604,345
CIGNA Contract 22001F $16,618,914 principal
9.70% matures 04/01/95 16,618,914 16,618,914
Morgan Guaranty $16,631,097 principal
RJRN Contract #47 8.95% matures 06/30/95 16,631,097 16,631,097
Aetna Life Insurance Co. $17,893,320 principal
Contract #PG-13831 9.09% matures 04/01/96 17,893,320 17,893,320
-16-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1993
- - --------------------------------------------------------------------------------------------------------
DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE,
BORROWER, LESSOR RATE OF INTEREST FAIR
OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
---------------- --------------------- ---- -----
CNA GIC Contract #12402-016 $922,206 principal
9.13% matures 06/30/94 $922,206 $922,206
CNA GIC Contract #12507A $7,176,141 principal
9.07% matures 04/01/94 7,176,141 7,176,141
Prudential Life Insurance Co. $33,220,861 principal
RJRN Contract #6288-215 9.04% matures 01/01/97 33,220,861 33,220,861
Prudential Life Insurance Co. $8,082,581 principal
RJRN Contract #6288-224 8.40% matures 04/01/94 8,082,581 8,082,581
CIGNA Contract #FM-22001D $22,242,522 principal
8.54% matures 09/30/94 22,242,522 22,242,522
CNA GIC Contract #12402-006 $3,725,857 principal
9.13% matures 06/30/94 3,725,857 3,725,857
Executive Life Insurance Co. $13,554,231 principal
GIC Contract #01299A3A 9.22% matured 06/30/93 13,554,231 13,554,231
CNA GIC Contract #12510A $1,327,239 principal
9.07% matures 04/01/94 1,327,239 1,327,239
John Hancock Mutual Insurance Co. $31,221,760 principal
GAC Contract #5884 8.53% matures 07/01/96 31,221,760 31,221,760
Bankers Trust Company GIC $26,163,863 principal
Contract #91-029 8.45% matures 06/15/95 26,163,863 26,163,863
Aetna Life Insurance Co. $30,629,775 principal
GIC Contract #14033 8.70% matures 07/01/97 30,629,775 30,629,775
Bankers Trust Company GIC $20,385,040 principal
Contract #91-089 8.85% matures 12/15/96 20,385,040 20,385,040
Bankers Trust Company GIC $15,472,841 principal
Contract #91-133 8.2848% matures 12/15/96 15,472,841 15,472,841
-17-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1993
- - --------------------------------------------------------------------------------------------------------
DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE,
BORROWER, LESSOR RATE OF INTEREST FAIR
OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
---------------- --------------------- ---- -----
Provident National GIC $25,886,132 principal
Contract #027-05095 7.83% matures 01/01/97 $25,886,132 $25,886,132
Bankers Trust Company GIC $10,220,136 principal
Contract #91-146 7.66% matures 06/10/95 10,220,136 10,220,136
Travelers Insurance Co. $5,833,876 principal
Contract #GR-15457 9.19% matures 10/01/96 5,833,876 5,833,876
CIGNA Contract #IN-16357 $18,553,861 principal
7.89% matures 10/01/97 18,553,861 18,553,861
Prudential Life Insurance Co. $5,309,563 principal
RJRN Contract #6288-216 6.87% matures 01/02/98 5,309,564 5,309,564
Confederation Life Insurance Co. $10,614,751 principal
GIC Contract #62720 6.80% matures 01/02/98 10,614,751 10,614,751
Provident Life & Accident $25,972,550 principal
Contract #627-05481 5.90% matures 04/01/98 25,972,550 25,972,550
Commonwealth Life Insurance Co. $17,726,639 principal
Contract #ADA00052TR 5.75% matures 04/01/98 17,726,639 17,726,639
Continental Assurance Co. $23,487,587 principal
GIC Contract #12901 5.78% matures 01/04/99 23,487,587 23,487,587
-------------- --------------
446,272,955 446,272,955
-18-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1993
- - --------------------------------------------------------------------------------------------------------
DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE,
BORROWER, LESSOR RATE OF INTEREST FAIR
OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
---------------- --------------------- ---- -----
Corporate CMO's:
Household Fin Corp. Home
Equity Loan Asset Backed 21,073 units
Certificate Series 1990-1, Adjustable rate,
Class A-1 matures 06/27/05 $21,073 $21,046
Bond investment funds:
Wells Fargo 1-3 Year
Government Bond Index Fund 3,424,399 units 150,575,544 150,344,174
Treasury Obligations:
United States Treasury Notes 8,000,000 units
dated 11/30/93 4.250% matures 11/30/95 8,007,520 8,005,040
Short-Term Investment Funds:
Wachovia Bank of North Carolina,
N.A. Diversified Short-Term
Investment Fund 28,285,509 units 28,285,509 28,285,509
Wells Fargo Bank Money
Market Fund 84 units 84 84
Other Short-Term Investments 14,149 14,149
-------------- --------------
TOTAL INTEREST INCOME FUND 633,176,834 632,942,957
-------------- --------------
-19-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1993
- - --------------------------------------------------------------------------------------------------------
DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE,
BORROWER, LESSOR RATE OF INTEREST FAIR
OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
---------------- --------------------- ---- -----
COMMON STOCK FUND
- - -----------------
RJR Nabisco Holdings Corp. 12,752,807 shares, par
Common Stock value $.01 per share $107,883,508 $82,893,245
Wachovia Bank of North Carolina,
N.A. Diversified Short-Term
Investment Fund 1,478,403 units 1,478,403 1,478,403
-------------- --------------
TOTAL COMMON STOCK FUND 109,361,911 84,371,648
-------------- --------------
MATCHING STOCK FUND
- - -------------------
RJR Nabisco Holdings Corp. 10,629 shares, par
Common Stock value $.01 per share $65,289 $69,089
RJR Nabisco Holdings Corp. 15,573,974 shares,
ESOP Convertible Preferred stated value $16.00,
Stock par value $.01 per share 249,183,584 249,183,584
Other Short-Term Investments 191 191
-------------- --------------
TOTAL MATCHING STOCK FUND 249,249,064 249,252,864
-------------- --------------
-20-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1993
- - --------------------------------------------------------------------------------------------------------
DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE,
BORROWER, LESSOR RATE OF INTEREST FAIR
OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
---------------- --------------------- ---- -----
GOVERNMENT SECURITIES FUND
- - --------------------------
Equity investment funds:
Dreyfus Government Cash
Management 22,366 shares $22,366 $22,366
Short-Term Investment Funds:
Wachovia Bank of North Carolina,
N.A. Diversified Short-Term
Investment Fund 10,100,939 units 10,100,939 10,100,939
Other Short-Term Investments 2,389 2,389
-------------- --------------
TOTAL GOVERNMENT SECURITIES FUND 10,125,694 10,125,694
-------------- --------------
LOAN FUND
- - ---------
Loans to participants * 29,876,423 29,876,423
-------------- --------------
$1,548,556,383 $1,571,157,225
============== ==============
* With respect to the Trust, there is a total of 4,108 loans to participants at
December 31, 1993, ranging from $1,000 to $50,000.
-21-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
- - --------------------------------------------------------------------------------------------------------------------
SELLING
PRICE OR
NUMBER OF NUMBER OF PURCHASE MATURITY NET
PURCHASES SALES PRICE VALUE GAIN/(LOSS)
--------- --------- --------- --------- ---------
Issue
- - -----
Growth Stock Fund
- - -----------------
Series of securities transactions in excess of 5% of net fund assets:
- - ---------------------------------------------------------------------
Authorized demand notes:
Wachovia Bank of North Carolina,
N.A. Diversified
Short-Term Investment Fund 107 38 $ 14,263,824 $ 13,397,601 $ --
Vanguard US Growth Portfolio 15 79 8,440,484 57,196,341 11,823,580
Vanguard Primecap Fund 3 76 612,480 59,758,655 16,545,262
Vanguard Trust Extended Market Portfolio 81 13 41,541,229 1,334,339 336,641
Vanguard Institutional Index Fund 84 12 77,623,710 2,260,058 474,712
-22-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
- - ------------------------------------------------------------------------------------------------------------------------
SELLING
PRICE OR
NUMBER OF NUMBER OF PURCHASE MATURITY NET
PURCHASES SALES PRICE VALUE GAIN/(LOSS)
--------- --------- --------- --------- -----------
Issue
- - -----
Real Estate Fund
- - ----------------
Series of securities transactions in excess of 5% of net fund assets:
- - ---------------------------------------------------------------------
Authorized demand notes:
Wachovia Bank of North Carolina,
N.A. Diversified
Short-Term Investment Fund 78 59 $ 1,177,729 $ 1,248,232 $ --
Equitable Preferred Property Fund
RJRN Contract #8429 -- 10 -- 1,344,000 (99,138)
-23-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
- - --------------------------------------------------------------------------------------------------------------------
SELLING
PRICE OR
NUMBER OF NUMBER OF PURCHASE MATURITY NET
PURCHASES SALES PRICE VALUE GAIN/(LOSS)
--------- --------- --------- --------- -----------
Issue
- - -----
General Stock Fund
- - ------------------
Series of securities transactions in excess of 5% of net fund assets:
- - ---------------------------------------------------------------------
Authorized demand notes:
Wachovia Bank of North Carolina,
N.A. Diversified
Short-Term Investment Fund 112 84 $ 19,164,099 $ 18,152,831 $ --
Vanguard Equity Income Fund 13 87 8,577,658 119,650,168 22,155,144
Vanguard Institutional Index Fund 85 20 130,368,765 1,890,447 479,351
Vanguard / Windsor Fund 3 57 2,091,980 118,257,461 15,503,858
Vanguard Trust Extended Market
Portfolio 68 2 113,229,317 40,820 (251)
-24-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
- - ------------------------------------------------------------------------------------------------------------------------
SELLING
PRICE OR
NUMBER OF NUMBER OF PURCHASE MATURITY NET
PURCHASES SALES PRICE VALUE GAIN/(LOSS)
--------- --------- --------- --------- -----------
Issue
- - -----
Money Market Fund
- - -----------------
A single transaction in excess of 5% of net fund assets:
- - --------------------------------------------------------
Vanguard Institutional Portfolios 1 -- $ 11,443,033 $ -- $ --
Vanguard Money Market Reserves, Inc. -- 1 -- 11,443,033 --
Series of securities transactions in excess of 5% of net fund assets:
- - ---------------------------------------------------------------------
Authorized demand notes:
Wachovia Bank of North Carolina,
N.A. Diversified
Short-Term Investment Fund 44 40 2,209,373 2,301,359 --
Vanguard Institutional Portfolios 17 9 13,325,655 1,236,000 --
Vanguard Money Market Reserves, Inc. 9 3 636,690 11,473,533 --
-25-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
- - ------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF NUMBER OF PURCHASE MATURITY NET
PURCHASES SALES PRICE VALUE GAIN/(LOSS)
----------- ----------- ----------- ----------- -----------
Issue
- - -----
Interest Income Fund
- - --------------------
A single transaction in excess of 5% of net fund assets:
Authorized demand notes:
Wachovia Bank of North Carolina,
N.A. Diversified
Short-Term Investment Fund 1 -- $ 47,670,886 $ -- $ --
-- 1 -- 57,909,483 --
Fischer Francis Trees & Watts, Inc.
Short-Term Fund 1 -- 37,804,000 -- --
1 -- 54,485,000 -- --
1 -- 35,350,000 -- --
1 -- 46,230,000 -- --
1 -- 36,171,000 -- --
1 -- 31,039,000 -- --
-- 1 -- 34,593,000 --
-- 1 -- 46,238,000 --
-- 1 -- 32,900,000 --
Wells Fargo Bank Money Market Fund -- 1 -- 71,112,573 --
1 -- 71,112,573 -- --
Wells Fargo Bank
1 - 3 Years Government Bond Index Fund 1 -- 71,112,573 -- --
1 -- 79,131,292 -- --
United States Treasury Notes dated 12/31/92
maturing 12/31/94 -- 1 -- 37,699,219 137,266
United States Treasury Notes dated 02/01/93
maturing 01/31/95 1 -- 37,397,250 -- --
United States Treasury Notes dated 03/01/93
maturing 02/28/95 1 -- 33,374,375 -- --
United States Treasury Notes dated 06/01/93
maturing 05/31/95 1 -- 31,980,000 -- --
-26-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
- - ----------------------------------------------------------------------------------------------------------------------------------
SELLING
PRICE OR
NUMBER OF NUMBER OF PURCHASE MATURITY NET
PURCHASES SALES PRICE VALUE GAIN/(LOSS)
----------- ----------- ----------- ----------- ----------
- - -----
Interest Income Fund
- - --------------------
A single transaction in excess of 5% of net fund assets:
- - --------------------------------------------------------
United States Treasury Notes dated 08/02/93
maturing 07/31/95 1 -- $ 35,350,000 $ -- $ --
-- 1 -- 35,350,000 334,136
-- 1 -- 35,247,461 (102,539)
United States Treasury Notes dated 08/31/93 1 -- 34,989,062 -- --
maturing 08/31/95 1 -- 35,000,000 -- --
1 -- 46,230,000 -- --
-- 1 -- 35,000,000 10,938
-- 1 -- 46,230,000 216,250
-- 1 -- 46,071,875 (158,125)
United States Treasury Notes dated 11/01/93
maturing 10/31/95 1 -- 43,012,470 -- --
1 -- 32,835,000 --
-- 1 -- 32,835,000 (174,570)
-- 1 -- 32,855,625 20,625
United States Treasury Notes dated 11/30/93
maturing 11/30/95 1 -- 43,067,510 -- --
-27-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
- - -----------------------------------------------------------------------------------------------------------------------------------
SELLING
PRICE OR
NUMBER OF NUMBER OF PURCHASE MATURITY NET
PURCHASES SALES PRICE VALUE GAIN/(LOSS)
----------- ----------- ----------- ----------- -----------
Issue
- - -----
Interest Income Fund
- - --------------------
Series of securities transactions in excess of 5% of net fund assets:
Authorized demand notes:
Wachovia Bank of North Carolina,
N.A. Diversified
Short-Term Investment Fund 271 258 $ 321,714,724 $ 282,950,863 $ --
Fischer Francis Trees & Watts, Inc.
Short Term Fund 69 59 505,917,385 518,591,761 --
Wells Fargo Bank Money Market Fund 3 2 71,112,716 71,112,632 --
Wells Fargo Bank
1 - 3 Years Government Bond Index Fund 6 -- 150,575,544 -- --
United States Treasury Notes dated 11/30/93
maturing 11/30/95 -- 2 -- 35,032,852 (8,030,818)
United States Treasury Bills dated 01/14/93
maturing 01/13/94 5 6 38,691,493 38,704,165 12,672
United States Treasury Bills dated 02/11/93
maturing 02/10/94 1 1 19,334,689 19,322,050 (12,639)
United States Treasury Notes dated 04/01/91
maturing 03/31/96 2 4 25,309,687 25,167,304 (142,383)
United States Treasury Notes dated 02/18/92
maturing 02/15/95 1 1 29,730,664 10,499,562 (59,949)
United States Treasury Notes dated 04/30/92
maturing 04/30/97 3 2 21,698,398 21,694,687 (3,711)
United States Treasury Notes dated 06/01/92
maturing 05/31/94 2 3 25,425,000 54,009,531 238,906
United States Treasury Notes dated 06/30/92
maturing 06/30/94 4 5 24,393,906 24,386,875 (7,031)
United States Treasury Notes dated 08/31/92
maturing 08/31/94 10 10 82,941,562 82,967,422 25,859
United States Treasury Notes dated 11/02/92
maturing 10/31/94 15 15 143,548,594 143,548,437 (156)
United States Treasury Notes dated 11/02/92
maturing 10/31/97 8 8 59,743,281 59,672,890 70,391
-28-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
- - -----------------------------------------------------------------------------------------------------------------------------
NUMBER OF NUMBER OF PURCHASE MATURITY NET
PURCHASES SALES PRICE VALUE GAIN/(LOSS)
----------- ----------- ----------- ----------- -----------
Issue
- - -----
Interest Income Fund
- - --------------------
Series of securities transactions in excess of 5% of net fund assets:
- - ---------------------------------------------------------------------
United States Treasury Notes dated 11/30/92
maturing 11/30/94 3 4 $ 45,618,750 $ 72,137,383 $ (113,867)
United States Treasury Notes dated 12/31/92
maturing 12/31/94 4 2 59,599,453 59,723,281 123,828
United States Treasury Notes dated 01/15/93
maturing 01/15/00 7 8 40,725,156 40,598,281 (126,875)
United States Treasury Notes dated 02/01/93
maturing 01/31/95 25 25 335,988,734 336,427,884 439,149
United States Treasury Notes dated 02/16/93
maturing 02/15/96 6 5 76,784,844 77,038,672 253,828
United States Treasury Notes dated 03/01/93
maturing 02/28/95 12 11 111,284,554 98,317,712 54,486
United States Treasury Notes dated 03/01/93
maturing 02/28/98 2 2 19,039,062 19,161,094 122,031
United States Treasury Notes dated 03/31/93
maturing 03/31/95 12 10 156,700,458 156,831,777 131,319
United States Treasury Notes dated 03/31/93
maturing 03/31/98 5 5 38,002,134 37,996,976 (5,157)
United States Treasury Notes dated 04/30/93
maturing 04/30/95 8 9 195,192,469 195,047,388 (145,080)
United States Treasury Notes dated 06/01/93
maturing 05/31/95 6 5 104,300,326 74,127,797 (80,342)
United States Treasury Notes dated 06/01/93
maturing 05/31/98 7 8 64,358,542 64,373,281 14,739
United States Treasury Notes dated 06/30/93
maturing 06/30/95 7 5 94,356,328 94,327,305 (29,023)
United States Treasury Notes dated 06/30/93
maturing 06/30/98 4 7 40,077,465 40,109,922 32,457
United States Treasury Notes dated 08/02/93
maturing 07/31/95 5 4 87,371,080 87,632,383 261,303
United States Treasury Notes dated 08/16/93
maturing 08/15/96 6 6 53,557,344 46,495,625 (469)
United States Treasury Notes dated 08/31/93
maturing 08/31/95 7 5 170,220,937 153,315,625 (57,398)
-29-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
- - ------------------------------------------------------------------------------------------------------------------------------
SELLING
PRICE OR
NUMBER OF NUMBER OF PURCHASE MATURITY NET
PURCHASES SALES PRICE VALUE GAIN/(LOSS)
----------- ----------- ----------- ----------- -----------
Issue
- - -----
Interest Income Fund
- - --------------------
Series of securities transactions in excess of 5% of net fund assets:
- - ---------------------------------------------------------------------
United States Treasury Notes dated 11/01/93
maturing 10/31/95 3 4 $ 85,797,470 $ 85,596,875 $ (200,595)
United States Treasury Notes dated 11/30/93
maturing 11/30/95 2 1 55,082,510 12,015,000 (3,840)
-30-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
- - ------------------------------------------------------------------------------------------------------------------------------
SELLING
PRICE OR
NUMBER OF NUMBER OF PURCHASE MATURITY NET
PURCHASES SALES PRICE VALUE GAIN/(LOSS)
----------- ----------- ----------- ----------- -----------
Issue
- - -----
Government Securities Fund
- - --------------------------
A single transaction in excess of 5% of net fund assets:
- - --------------------------------------------------------
Authorized demand notes:
Wachovia Bank of North Carolina,
N.A. Diversified
Short-Term Investment Fund 1 -- $ 1,808,952 $ -- $ --
1 -- 9,893,040 -- --
-- 1 --- 1,100,000 --
-- 1 -- 270,000 --
-- 1 -- 424,299 --
-- 1 -- 307,500 --
Dreyfus Government Cash -- 1 -- 9,863,843 --
Management Equity Fund 1 -- 270,000 -- --
1 -- 1,400,000 -- --
1 -- 1,100,000 -- --
1 -- 307,500 -- --
Series of securities transactions in excess of 5% of net fund assets:
- - ---------------------------------------------------------------------
Authorized demand notes:
Wachovia Bank of North Carolina,
N.A. Diversified
Short-Term Investment Fund 88 78 14,193,759 4,228,873 --
Dreyfus Government Cash
Management Equity Fund 36 5 5,058,734 10,092,843 --
-31-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
- - --------------------------------------------------------------------------------------------------------------------------------
SELLING
PRICE OR
NUMBER OF NUMBER OF PURCHASE MATURITY NET
PURCHASES SALES PRICE VALUE GAIN/(LOSS)
----------- ----------- ----------- ----------- -----------
Issue
- - -----
Stock Index Fund
- - ----------------
A single transaction in excess of 5% of net fund assets:
- - --------------------------------------------------------
Authorized demand notes:
Wachovia Bank of North Carolina,
N.A. Diversified
Short-Term Investment Fund -- 1 $ -- $ 350,000 $ --
1 -- 343,218 -- --
Vanguard Institutional Index Fund -- 1 -- 350,000 62,808
-- 1 -- 400,000 75,497
1 -- 420,000 -- --
1 -- 350,000 -- --
Series of securities transactions in excess of 5% of net fund assets:
- - ---------------------------------------------------------------------
Authorized demand notes:
Wachovia Bank of North Carolina,
N.A. Diversified
Short-Term Investment Fund 36 37 1,896,496 1,989,611 --
Vanguard Institutional Index Fund 19 6 2,857,621 866,500 159,485
-32-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
- - ---------------------------------------------------------------------------------------------------------------------------
SELLING
PRICE OR
NUMBER OF NUMBER OF PURCHASE MATURITY NET
PURCHASES SALES PRICE VALUE GAIN/(LOSS)
----------- ----------- ----------- ----------- -----------
Issue
- - -----
Bristol-Myers Stock Fund
- - ------------------------
A single transaction in excess of 5% of net fund assets:
- - --------------------------------------------------------
Authorized demand notes:
Wachovia Bank of North Carolina,
N.A. Diversified
Short-Term Investment Fund -- 1 $ -- $ 138,197 $ --
-- 1 -- 1,769,445 --
1 -- 675,527 -- --
1 -- 681,907 -- --
1 -- 649,571 -- --
Bristol-Myers Squibb Co. Common Stock -- 1 -- 675,527 571,764
-- 1 -- 681,907 578,144
-- 1 -- 649,571 439,070
1 -- 138,196 -- --
Series of securities transactions in excess of 5% of net fund assets:
- - ---------------------------------------------------------------------
Authorized demand notes:
Wachovia Bank of North Carolina,
N.A. Diversified
Short-Term Investment Fund 12 11 2,054,436 2,054,547 --
Bristol-Myers Squibb Co. Common Stock 1 4 138,196 2,036,022 1,607,030
-33-
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
SELLING
PRICE OR
NUMBER OF NUMBER OF PURCHASE MATURITY NET
PURCHASES SALES PRICE VALUE GAIN/(LOSS)
----------- ----------- ----------- ----------- -----------
Issue
- - -----
Preferred Stock Fund
- - --------------------
A single transaction in excess of 5% of net fund assets:
- - --------------------------------------------------------
Authorized demand notes:
Wachovia Bank of North Carolina,
N.A. Diversified
Short-Term Investment Fund -- 1 $ -- $ 1,069,088 $ --
-- 1 -- 610,798 --
1 -- 386,267 -- --
1 -- 193,179 -- --
RJR Nabisco Holdings Corp.
Cumulative Convertible -- 1 -- 386,267 6,703
Preferred Stock 193,179 (2,246)
Series of securities transactions in excess of 5% of net fund assets:
- - ---------------------------------------------------------------------
Authorized demand notes:
Wachovia Bank of North Carolina,
N.A. Diversified
Short-Term Investment Fund 104 53 1,918,079 1,940,793 --
RJR Nabisco Holdings Corp.
Cumulative Convertible
Preferred Stock -- 65 -- 1,970,118 59,529
-34
RJR NABISCO, INC. DEFINED CONTRIBUTION MASTER TRUST
- - ---------------------------------------------------
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
- - -----------------------------------------------------------------------------------------------------------
SELLING
PRICE OR
NUMBER OF NUMBER OF PURCHASE MATURITY NET
PURCHASES SALES PRICE VALUE GAIN/(LOSS)
---------- ---------- ---------- ---------- ----------
Issue
- - -----
Common Stock Fund
Series of securities transactions in excess of 5% of net fund assets:
- - ---------------------------------------------------------------------
Authorized demand notes:
Wachovia Bank of North Carolina,
N.A. Diversified
Short-Term Investment Fund 224 203 $ 24,825,107 $ 25,361,160 $ --
RJR Nabisco Holdings Corp.
Common Stock 82 9 23,234,122 173,431 (103,370)
-35-