1
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEARS ENDED JUNE 30, 1997 AND 1996
------------------------
THRIFT PLANS
OF
CONSOLIDATED NATURAL GAS COMPANY
AND
ITS PARTICIPATING SUBSIDIARIES
(FULL TITLE OF THE PLAN)
------------------------
CONSOLIDATED NATURAL GAS COMPANY
(NAME OF ISSUER OF THE SECURITIES)
CNG TOWER
PITTSBURGH, PENNSYLVANIA 15222-3199
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICE)
===============================================================================
2
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY
AND ITS PARTICIPATING SUBSIDIARIES
FORM 11-K ANNUAL REPORT
FOR THE FISCAL YEARS ENDED JUNE 30, 1997 AND 1996
INDEX
PAGE
----
Report of Independent Accountants.........................................................................1
Financial Statements
Consolidated Statement of Net Assets Available for Benefits with
Fund Information - June 30, 1997 .....................................................................2
Consolidated Statement of Net Assets Available for Benefits with
Fund Information - June 30, 1996......................................................................5
Consolidated Statement of Changes in Net Assets Available for Benefits with
Fund Information - June 30, 1997......................................................................8
Consolidated Statement of Changes in Net Assets Available for Benefits with
Fund Information - June 30, 1996......................................................................11
Notes to Consolidated Financial Statements................................................................14
Additional Information
Schedule of Assets Held for Investment Purposes.......................................................Schedule I
Schedule of Reportable Transactions...................................................................Schedule II
3
REPORT OF INDEPENDENT ACCOUNTANTS
To the Plan Administrator and the
Participants of the Thrift Plans of
Consolidated Natural Gas Company and
Its Participating Subsidiaries
In our opinion, the consolidated financial statements as listed in the
accompanying index present fairly, in all material respects, the consolidated
net assets available for benefits of the Thrift Plans of Consolidated Natural
Gas Company and Its Participating Subsidiaries (the "Thrift Plans") at June 30,
1997 and 1996 and the consolidated changes in net assets available for benefits
for the years then ended, in conformity with generally accepted accounting
principles. These financial statements are the responsibility of the Plan
Administrator. Our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these statements in
accordance with generally accepted auditing standards which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by 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 additional information included in
Schedules I and II is presented for purposes of additional analysis and is
not a required part of the basic financial statements. The Fund Information
in the consolidated statements of net assets available for benefits and the
consolidated statements of changes in net assets available for benefits is
presented for purposes of additional analysis rather than to present the net
assets available for benefits and the changes in net assets available for
benefits of each fund or thrift trust. Schedules I and II and the Fund
Information have been subjected to the auditing procedures applied in the
audits of the basic financial statements and, in our opinion, are fairly
stated in all material respects in relation to the basic financial statements
taken as a whole.
PRICE WATERHOUSE LLP
600 Grant Street
Pittsburgh, Pennsylvania
January 12, 1998
1
4
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
CONSOLIDATED STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
WITH FUND INFORMATION
AT JUNE 30, 1997
GENERAL AND SHORT-TERM
THRIFT TRUSTS
-----------------------------------------
Consolidated Cash
Natural Gas (General
Company Investments
Common and Money Funds
Stock Fund Market Funds) Combined
------------ ------------ -----------
Assets:
Cash ...................................... $ -- $ 53,106 $ 53,106
Consolidated Natural Gas Company
common stock, at market .................. 1,269,060 -- 1,269,060
Temporary investments, at cost (which
approximates market value) ................ -- 13,503,803 13,503,803
Loans to participants ..................... -- 12,665 12,665
Interest receivable ...................... -- 66,574 66,574
Contributions and loan deductions due
from employers ........................... -- 1,049,111 1,049,111
---------- ----------- -----------
TOTAL ASSETS ................ 1,269,060 14,685,259 15,954,319
Liabilities:
Accounts payable .......................... -- 3,874 3,874
---------- ----------- -----------
Net assets available for benefits ........ $1,269,060 $14,681,385 $15,950,445
========== =========== ===========
The accompanying notes are an integral
part of these consolidated financial statements.
2
5
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
CONSOLIDATED STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
WITH FUND INFORMATION
AT JUNE 30, 1997
Alternate and Long-Term Thrift Trusts
- -------------------------------------------------------------------------------------------------------------------------------
Consolidated Fixed
Natural Gas Dominion Diversified Investment
Company Resources Equity Cash Stable Value
Common Stock Incorporated and (General and Fixed
and CNG Common Diversified Investments Investment S&P 500 Small Stock
Stock Funds Stock Fund Funds Fund) Funds Index Fund Fund
------------- ----------- ----------- ----------- ------------ ---------- ----------
Assets:
Cash ................ $ -- $ -- $ -- $ 1,015,908 $ -- $ -- $ --
Consolidated Natural
Gas Company common
stock, at market ... 504,116,988 -- -- -- -- -- --
Dominion Resources,
Incorporated common
stock, at market.... -- 3,033,801 -- -- -- -- --
Common stock, at
market value ....... -- -- 36,711,029 -- -- -- --
Temporary
investments, at
cost (which
approximates market
value).............. 4,142,166 -- 1,420,716 3,435,000 7,608,107 12,000 --
Insurance Company
Contracts, at contract
value (which approximates
market value)......... -- -- -- -- 277,884,686 -- --
Registered
Investment Company
Holdings, at market.... -- -- 3,219,101 -- -- 16,885,948 11,532,732
Common/Collective
Trusts, at market..... -- -- -- -- -- -- --
Loans to
Participants ....... -- -- -- -- -- -- --
Dividends and
interest
receivable ........ 14,845 -- 52,424 45,709 37,646 6,026 369
Receivable from
sale of common
stock ............. -- -- 61,750 -- -- -- --
Contributions and
loan deductions due
from employers .... -- -- -- 42,285 -- -- --
Interfund accounts -
receivable/
(payable) ......... 1,247,310 (332,450) 33,339 1,936,976 (2,570,331) -- --
------------ ---------- ----------- ----------- ------------ ----------- -----------
TOTAL ASSETS ....... 509,521,309 2,701,351 41,498,359 6,475,878 282,960,108 16,903,974 11,533,101
Liabilities:
Accounts payable.. 1,427,352 -- 144,754 2,097,259 -- -- --
------------ ---------- ----------- ----------- ------------ ----------- -----------
Net assets available
for benefits....... $508,093,957 $2,701,351 $41,353,605 $ 4,378,619 $282,960,108 $16,903,974 $11,533,101
============ ========== =========== =========== ============ =========== ===========
The accompanying notes are an integral
part of these consolidated financial statements.
3
6
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
CONSOLIDATED STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
WITH FUND INFORMATION
AT JUNE 30, 1997
Alternate and Long-Term Thrift Trusts
- --------------------------------------------------------------------------------------------------------------------
Conservative Moderate Growth Total
International Intermediate Balanced Balanced Balanced Participants' Funds for all
Equity Fund Bond Fund Fund Fund Fund Loan Fund Combined Plans
----------- ----------- ------------ ---------- -------- ------------ --------- ------------
Assets:
Cash ................ $ -- $ -- $ -- $ -- $ -- $ -- $ 1,015,908 $ 1,069,014
Consolidated Natural
Gas Company common
stock, at market.... -- -- -- -- -- -- 504,116,988 505,386,048
Dominion Resources,
Incorporated common
stock, at market.... -- -- -- -- -- -- 3,033,801 3,033,801
Common stock, at
market value........ -- -- -- -- -- -- 36,711,029 36,711,029
Temporary
investments, at
cost (which
approximates market
value)............. -- -- 11,750 5,600 -- -- 16,635,339 30,139,142
Insurance Company
Contracts, at contract
value (which approximates
market value) .... -- -- -- -- -- -- 277,884,686 277,884,686
Registered
Investment Company
Holdings, at market... 8,715,157 3,105,348 -- -- -- -- 43,458,286 43,458,286
Common/Collective
Trusts, at market..... -- -- 2,072,703 8,515,599 7,778,819 -- 18,367,121 18,367,121
Loans to
Participants....... -- -- -- -- -- 9,467,059 9,467,059 9,479,724
Dividends and
interest
receivable ........ 13,591 1,427 -- -- -- -- 172,037 238,611
Receivable from
sale of common
stock ............. -- -- -- -- -- -- 61,750 61,750
Contributions and
loan deductions due
from employers .... -- -- -- -- -- 314,844 357,129 1,406,240
Interfund accounts -
receivable/
(payable) ......... -- -- -- -- -- (314,844) -- --
---------- ---------- ---------- ---------- ---------- ---------- ------------ ------------
TOTAL ASSETS ....... 8,728,748 3,106,775 2,084,453 8,521,199 7,778,819 9,467,059 911,281,133 927,235,452
Liabilities:
Accounts payable.. -- -- 75,424 69,438 73,124 -- 3,887,351 3,891,225
---------- ---------- ---------- ---------- ---------- ---------- ------------ ------------
Net assets available
for benefits....... $8,728,748 $3,106,775 $2,009,029 $8,451,761 $7,705,695 $9,467,059 $907,393,782 $923,344,227
========== ========== ========== ========== ========== ========== ============ ============
The accompanying notes are an integral
part of these consolidated financial statements.
4
7
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
CONSOLIDATED STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
WITH FUND INFORMATION
AT JUNE 30, 1996
GENERAL AND SHORT-TERM
THRIFT TRUSTS
-----------------------------------------
Consolidated Cash
Natural Gas (General
Company Investments
Common and Money Funds
Stock Fund Market Funds) Combined
------------ ------------ -----------
Assets:
Cash ...................................... $ -- $ 567,090 $ 567,090
Consolidated Natural Gas Company
common stock, at market .................. 1,620,429 -- 1,620,429
Temporary investments at cost (which
approximates market value)................. -- 13,662,754 13,662,754
Loans to participants ..................... -- 12,665 12,665
Interest receivable ...................... -- 33,394 33,394
Contributions and loan deductions due
from employers ........................... -- 997,778 997,778
--------- ----------- -----------
TOTAL ASSETS ................ 1,620,429 15,273,681 16,894,110
Liabilities:
Accounts payable .......................... -- 586,326 586,326
---------- ----------- -----------
Net assets available for benefits ........ $1,620,429 $14,687,355 $16,307,784
========== =========== ===========
The accompanying notes are an integral
part of these consolidated financial statements.
5
8
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
CONSOLIDATED STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
WITH FUND INFORMATION
AT JUNE 30, 1996
Alternate and Long-Term Thrift Trusts
- -------------------------------------------------------------------------------------------------------------------------------
Consolidated Fixed
Natural Gas Dominion Diversified Investment
Company Resources Equity Cash Stable Value
Common Stock Incorporated and (General and Fixed
and CNG Common Diversified Investments Investment S&P 500 Small Stock
Stock Funds Stock Fund Funds Fund) Funds Index Fund Fund
------------- ----------- ----------- ----------- ------------ ----------- -----------
Assets:
Cash ................ $ -- $ -- $ 3,018 $ 90,977 $ -- $ -- $ 116
Consolidated Natural
Gas Company common
stock, at market ... 541,218,931 -- -- -- -- -- --
Dominion Resources,
Incorporated common
stock, at market.... -- 3,825,167 -- -- -- -- --
Common stock, at
market value........ -- -- 28,849,315 -- -- -- --
Temporary
investments, at
cost (which
approximates market
value).............. 1,483,820 -- 189,195 4,250,000 8,327,941 8 11
Insurance Company
Contracts, at contract
value (which approximates
market value)........ -- -- -- -- 253,398,283 -- --
Registered
Investment Company
Holdings, at market .. -- -- 2,323,660 -- -- 6,196,973 4,748,878
Common/Collective
Trusts, at market ... -- -- -- -- -- -- --
Loans to
Participants ....... -- -- -- -- -- -- --
Dividends and
interest
receivable ........ 1,756,803 -- 63,497 41,312 632,245 34,040 3,037
Receivable from
sale of common
stock ............. -- -- 10,030 -- -- -- --
Contributions and
loan deductions due
from employers .... -- -- -- (2,255) -- -- --
Interfund accounts -
receivable/
(payable) ......... (216,174) (241,670) 8,492 2,688,153 (1,898,433) -- --
------------ ---------- ----------- ----------- ------------ ----------- -----------
TOTAL ASSETS ....... 544,243,380 3,583,497 31,447,207 7,068,187 260,460,036 6,231,021 4,752,042
Liabilities:
Accounts payable.. 40 -- 114,446 682,784 400,000 20,307 21,735
------------ ---------- ----------- ----------- ------------ ----------- -----------
Net assets available
for benefits...... $544,243,340 $3,583,497 $31,332,761 $ 6,385,403 $260,060,036 $ 6,210,714 $ 4,730,307
============ ========== =========== =========== ============ =========== ===========
The accompanying notes are an integral
part of these consolidated financial statements.
6
9
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
CONSOLIDATED STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
WITH FUND INFORMATION
AT JUNE 30, 1996
Alternate and Long-Term Thrift Trusts
- --------------------------------------------------------------------------------------------------------------------
Conservative Moderate Growth Total
International Intermediate Balanced Balanced Balanced Participants' Funds for all
Equity Fund Bond Fund Fund Fund Fund Loan Fund Combined Plans
----------- ----------- ------------ ---------- -------- ------------ --------- -----------
Assets:
Cash ................ $ -- $ -- $ -- $ -- $ -- $ -- $ 94,111 $ 661,201
Consolidated Natural
Gas Company common
stock, at market.... -- -- -- -- -- -- 541,218,931 542,839,360
Dominion Resources,
Incorporated common
stock, at market.... -- -- -- -- -- -- 3,825,167 3,825,167
Common stock, at
market value........ -- -- -- -- -- -- 28,849,315 28,849,315
Temporary
investments, at
cost (which
approximates market
value).............. 8 3 71 26 17 -- 14,251,100 27,913,854
Insurance Company
Contracts at contract
value (which approximates
market value)........ -- -- -- -- -- -- 253,398,283 253,398,283
Registered
Investment Company
Holdings, at market... 4,138,949 2,136,556 -- -- -- -- 19,545,016 19,545,016
Common/Collective
Trusts, at market..... -- -- 1,239,482 4,941,408 3,757,871 -- 9,938,761 9,938,761
Loans to
Participants........ -- -- -- -- -- 9,666,500 9,666,500 9,679,165
Dividends and
interest
receivable ........ 390 10,702 5 -- -- -- 2,542,031 2,575,425
Receivable from
sale of common
stock ............. -- -- -- -- -- -- 10,030 10,030
Contributions and
loan deductions due
from employers .... -- -- -- -- -- 340,368 338,113 1,335,891
Interfund accounts -
receivable/
(payable) ......... -- -- -- -- -- (340,368) -- --
---------- ---------- ---------- ---------- ---------- ---------- ------------ ------------
TOTAL ASSETS ....... 4,139,347 2,147,261 1,239,558 4,941,434 3,757,888 9,666,500 883,677,358 900,571,468
Liabilities:
Accounts payable.. 21 422 8 20,196 36,783 -- 1,296,742 1,883,068
---------- ---------- ---------- ---------- ---------- ---------- ------------ ------------
Net assets available
for benefits...... $4,139,326 $2,146,839 $1,239,550 $4,921,238 $3,721,105 $9,666,500 $882,380,616 $898,688,400
========== ========== ========== ========== ========== ========== ============ ============
The accompanying notes are an integral
part of these consolidated financial statements.
7
10
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS AVAILABLE
FOR BENEFITS WITH FUND INFORMATION
YEAR ENDED JUNE 30, 1997
GENERAL AND SHORT-TERM
THRIFT TRUSTS
--------------------------------------
Consolidated Cash
Natural Gas (General
Company Investments
Common and Money Funds
Stock Fund Market Funds) Combined
---------- ----------- ------------
ADDITIONS
Additions to net assets attributed to:
Contributions:
From participating employees ............. $ -- $14,910,757 $14,910,757
Dividend income ............................. -- 24,295 24,295
Interest income ............................. -- 561,867 561,867
Net appreciation (depreciation) in fair
value of investments ...................... (224,799) -- (224,799)
Interfund conversions - net ................. -- -- --
---------- ----------- -----------
TOTAL ADDITIONS ............. (224,799) 15,496,919 15,272,120
---------- ----------- -----------
DEDUCTIONS
Deductions from net assets attributed to:
Benefits paid to participants ............... 126,570 15,502,889 15,629,459
---------- ----------- -----------
TOTAL DEDUCTIONS ............ 126,570 15,502,889 15,629,459
---------- ----------- -----------
Net increase/(decrease) ..................... (351,369) (5,970) (357,339)
Net assets available for benefits:
Beginning of year ........................... 1,620,429 14,687,355 16,307,784
---------- ----------- -----------
End of year ................................. $1,269,060 $14,681,385 $15,950,445
========== =========== ===========
The accompanying notes are an integral
part of these consolidated financial statements.
8
11
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS WITH FUND INFORMATION
YEAR ENDED JUNE 30, 1997
Alternate and Long-Term Thrift Trusts
- -------------------------------------------------------------------------------------------------------------------------------
Consolidated Fixed
Natural Gas Dominion Diversified Investment
Company Resources Equity Cash Stable Value
Common Stock Incorporated and (General and Fixed
and CNG Common Diversified Investments Investment S&P 500 Small Stock
Stock Funds Stock Fund Funds Fund) Funds Index Fund Fund
------------- ----------- ----------- ----------- ------------ ---------- ----------
ADDITIONS
Additions to net assets
attributed to:
Contributions:
From participating
employees .......... $ -- $ -- $ -- $ -- $ -- $ -- $ --
From participating
employers .......... -- -- -- -- -- -- --
Other ............... -- -- -- -- -- -- --
------------ ----------- ----------- ----------- ------------ ----------- -----------
9,848,390 -- 2,771,496 231,472 6,662,775 2,077,743 2,347,623
Dividend Income:
Consolidated Natural
Gas Company
common stock ....... 14,786,430 -- 60,382 165,949 3,630,176 -- --
Other ............... 212,976 -- 708,550 12,007 -- -- --
Interest income ....... 72,081 -- 65,027 295,022 17,456,002 -- --
Net appreciation
(depreciation) in
fair value of
investments .......... 10,001,349 (385,060) 7,511,728 -- -- 3,599,978 2,186,816
Interfund
conversions - net .... (58,831,768) (344,630) 387,910 6,672,818 40,012,270 5,572,913 2,476,967
------------ ----------- ----------- ----------- ------------ ----------- -----------
TOTAL ADDITIONS ... (23,910,542) (729,690) 11,505,093 7,377,268 67,761,223 11,250,634 7,011,406
------------ ----------- ----------- ----------- ------------ ----------- -----------
DEDUCTIONS
Deductions from net
assets attributable to:
Benefits paid to
participants ......... 12,238,841 152,456 1,484,249 9,384,052 44,861,151 557,374 208,612
------------ ----------- ----------- ----------- ------------ ----------- -----------
TOTAL DEDUCTIONS .. 12,238,841 152,456 1,484,249 9,384,052 44,861,151 557,374 208,612
------------ ----------- ----------- ----------- ------------ ----------- -----------
Net increase/(decrease) (36,149,383) (882,146) 10,020,844 (2,006,784) 22,900,072 10,693,260 6,802,794
Net assets available
for benefits:
Beginning of year .... 544,243,340 3,583,497 31,332,761 6,385,403 260,060,036 6,210,714 4,730,307
------------ ----------- ----------- ----------- ------------ ----------- -----------
End of year ......... $508,093,957 $ 2,701,351 $41,353,605 $ 4,378,619 $282,960,108 $16,903,974 $11,533,101
============ =========== =========== =========== ============ =========== ===========
The accompanying notes are an integral part of
these consolidated financial statements.
9
12
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS WITH FUND INFORMATION
YEAR ENDED JUNE 30, 1997
Alternate and Long-Term Thrift Trusts
- -----------------------------------------------------------------------------------------------------------------------
Conservative Moderate Growth Participants' Total
International Intermediate Balanced Balanced Balanced Loan Funds for all
Equity Fund Bond Fund Fund Fund Fund Fund Combined Plans
------------- ------------ ------------ ----------- ------------ ------------- --------- -----------
ADDITIONS
Additions to net assets
attributed to:
Contributions:
From participating
employees ......... $ -- $ -- $ -- $ -- $ -- $ -- $ 12,313,082 $ 27,223,839
From participating
employers ......... -- -- -- -- -- -- 16,107,387 16,107,387
Other .............. -- -- -- -- -- -- 1,234,986 1,234,986
------------ ----------- ----------- ----------- ----------- ---------- ------------ ------------
1,816,895 596,501 324,953 1,458,376 1,519,231 -- 29,655,455 44,566,212
Dividend Income:
Consolidated Natural
Gas Company
common stock ....... -- -- -- -- -- -- 18,642,937 18,667,232
Other ............... -- -- -- -- -- -- 933,533 933,533
Interest income ....... -- -- -- -- -- 848,712 18,736,844 19,298,711
Net appreciation
(depreciation) in
fair value of
investments .......... 1,255,191 255,776 241,579 1,316,454 1,391,670 -- 27,375,481 27,150,682
Interfund
conversions - net .... 1,670,850 357,507 306,926 1,051,637 1,252,228 (585,628) -- --
------------ ----------- ----------- ------------ ----------- ----------- ------------ ------------
TOTAL ADDITIONS ... 4,742,936 1,209,784 873,458 3,826,467 4,163,129 263,084 95,344,250 110,616,370
------------ ----------- ----------- ------------ ----------- ----------- ------------ ------------
DEDUCTIONS
Deductions from net
assets attributable to:
Benefits paid to
participants ......... 153,514 249,848 103,979 295,944 178,539 462,525 70,331,084 85,960,543
------------ ----------- ----------- ----------- ----------- ----------- ------------ -----------
TOTAL DEDUCTIONS .. 153,514 249,848 103,979 295,944 178,539 462,525 70,331,084 85,960,543
------------ ----------- ----------- ----------- ----------- ----------- ------------ -----------
Net increase/(decrease) 4,589,422 959,936 769,479 3,530,523 3,984,590 (199,441) 25,013,166 24,655,827
Net assets available
for benefits:
Beginning of year .. 4,139,326 2,146,839 1,239,550 4,921,238 3,721,105 9,666,500 882,380,616 898,688,400
------------ ----------- ----------- ----------- ----------- ----------- ------------ ------------
End of year ........ $ 8,728,748 $ 3,106,775 $ 2,009,029 $ 8,451,761 $ 7,705,695 $ 9,467,059 $907,393,782 $923,344,227
============ =========== =========== =========== =========== =========== ============ ============
The accompanying notes are an integral part of
these consolidated financial statements.
10
13
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS AVAILABLE
FOR BENEFITS WITH FUND INFORMATION
YEAR ENDED JUNE 30, 1996
GENERAL AND SHORT-TERM
THRIFT TRUSTS
---------------------------------------
Consolidated Cash
Natural Gas (General
Company Investments
Common and Money Funds
Stock Fund Market Funds) Combined
----------- ------------ -----------
ADDITIONS
Additions to net assets attributed to:
Contributions:
From participating employees ........... $ -- $15,493,013 $15,493,013
Transfer to Long-Term Thrift Trust ......... (1,724) -- (1,724)
Dividend income ........................... -- 36,562 36,562
Interest income ........................... -- 587,661 587,661
Net appreciation (depreciation) in fair
value of investments...................... (218,717) -- (218,717)
Interfund conversions - net ............... (10,352) 10,352 --
---------- ----------- -----------
TOTAL ADDITIONS ........... (230,793) 16,127,588 15,896,795
---------- ----------- -----------
DEDUCTIONS
Deductions from net assets attributed to:
Benefits paid to participants ............. 396,641 17,079,697 17,476,338
---------- ----------- -----------
TOTAL DEDUCTIONS .......... 396,641 17,079,697 17,476,338
---------- ----------- -----------
Net increase/(decrease) ................... (627,434) (952,109) (1,579,543)
Net assets available for benefits:
Beginning of year ......................... 2,247,863 15,639,464 17,887,327
---------- ----------- -----------
End of year ............................... $1,620,429 $14,687,355 $16,307,784
========== =========== ===========
The accompanying notes are an integral
part of these consolidated financial statements.
11
14
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS WITH FUND INFORMATION
YEAR ENDED JUNE 30, 1996
Alternate and Long-Term Thrift Trusts
- -------------------------------------------------------------------------------------------------------------------------------
Consolidated Fixed
Natural Gas Dominion Diversified Investment
Company Resources Equity Cash Stable Value
Common Stock Incorporated and (General and Fixed
and CNG Common Diversified Investments Investment S&P 500 Small Stock
Stock Funds Stock Fund Funds Fund) Funds Index Fund Fund
------------- ----------- ----------- ----------- ------------ ---------- -----------
ADDITIONS
Additions to net assets
attributed to:
Contributions:
From participating
employees ......... $ -- $ -- $ -- $ -- $ -- $ -- $ --
From participating
employers ......... -- -- -- -- -- -- --
Other .............. -- -- -- -- -- -- --
------------ ----------- ----------- ----------- ------------ ---------- ----------
10,851,519 -- 2,366,866 579,456 6,972,380 1,626,775 2,027,569
Transfer from
General Thrift
Trust................. 1,724 -- -- -- -- -- --
Dividend Income:
Consolidated Natural
Gas Company
common stock ....... 18,037,246 -- 38,989 197,814 4,195,801 -- --
Other ............... 242,103 -- 663,415 69,403 -- -- --
Interest income ....... 295 -- 43,298 281,725 16,206,760 1,015 35
Net appreciation
(depreciation) in
fair value of
investments........... 157,560,625 145,030 6,241,340 -- -- 605,279 362,260
Interfund
conversions - net .... (65,257,523) (1,010,993) 376,482 12,791,846 36,009,684 4,105,273 2,432,695
------------ ----------- ----------- ----------- ------------ ---------- ----------
TOTAL ADDITIONS ... 121,435,989 (865,963) 9,730,390 13,920,244 63,384,625 6,338,342 4,822,559
------------ ----------- ----------- ----------- ------------ ---------- ----------
DEDUCTIONS
Deductions from net
assets attributable to:
Benefits paid to
participants ......... 26,645,555 375,189 3,273,791 19,241,484 45,701,075 127,628 92,252
------------ ----------- ----------- ----------- ------------ ---------- ----------
TOTAL DEDUCTIONS .. 26,645,555 375,189 3,273,791 19,241,484 45,701,075 127,628 92,252
------------ ----------- ----------- ----------- ------------ ---------- ----------
Net increase/(decrease) 94,790,434 (1,241,152) 6,456,599 (5,321,240) 17,683,550 6,210,714 4,730,307
Net assets available
for benefits:
Beginning of year .. 449,452,906 4,824,649 24,876,162 11,706,643 242,376,486 -- --
------------ ----------- ----------- ----------- ------------ ---------- ----------
End of year ........ $544,243,340 $ 3,583,497 $31,332,761 $ 6,385,403 $260,060,036 $6,210,714 $4,730,307
============ =========== =========== =========== ============ ========== ==========
The accompanying notes are an integral part of
these consolidated financial statements.
12
15
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS WITH FUND INFORMATION
YEAR ENDED JUNE 30, 1996
Alternate and Long-Term Thrift Trusts
- ----------------------------------------------------------------------------------------------------------------------
Conservative Moderate Growth Participants' Total
International Intermediate Balanced Balanced Balanced Loan Funds for all
Equity Fund Bond Fund Fund Fund Fund Fund Combined Plans
------------ ------------ ------------ ----------- ------------ ------------ ---------- ------------
ADDITIONS
Additions to net assets
attributed to:
Contributions:
From participating
employees ......... $ -- $ -- $ -- $ -- $ -- $ -- $ 11,432,810 $ 26,925,823
From participating
employers ......... -- -- -- -- -- -- 18,012,398 18,012,398
Other .............. -- -- -- -- -- -- 153,051 153,051
----------- ----------- ----------- ---------- ----------- ---------- ------------ -----------
1,521,170 619,697 305,357 1,391,686 1,335,784 -- 29,598,259 45,091,272
Transfer from
General Thrift
Trust ................ -- -- -- -- -- -- 1,724 --
Dividend Income:
Consolidated Natural
Gas Company
common stock ....... -- -- -- -- -- -- 22,469,850 22,506,412
Other ............... -- -- -- -- -- -- 974,921 974,921
Interest income ....... 27 114 468 509 38 636,266 17,170,550 17,758,211
Net appreciation
(depreciation) in
fair value of
investments .......... 309,635 29,449 61,829 303,334 222,778 -- 165,841,559 165,622,842
Interfund
conversions - net .... 2,476,819 1,956,732 1,001,314 3,318,194 2,242,707 (443,230) -- --
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
TOTAL ADDITIONS ... 4,307,651 2,605,992 1,368,968 5,013,723 3,801,307 193,036 236,056,863 251,953,658
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
DEDUCTIONS
Deductions from net
assets attributable to:
Benefits paid to
participants ......... 168,325 459,153 129,418 92,485 80,202 850,002 97,236,559 114,712,897
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
TOTAL DEDUCTIONS .. 168,325 459,153 129,418 92,485 80,202 850,002 97,236,559 114,712,897
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
Net increase/(decrease) 4,139,326 2,146,839 1,239,550 4,921,238 3,721,105 (656,966) 138,820,304 137,240,761
Net assets available
for benefits:
Beginning of year .. -- -- -- -- -- 10,323,466 743,560,312 761,447,639
----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------
End of year ........ $ 4,139,326 $ 2,146,839 $ 1,239,550 $ 4,921,238 $ 3,721,105 $ 9,666,500 $882,380,616 $898,688,400
=========== =========== =========== =========== =========== =========== ============ ============
The accompanying notes are an integral part of
these consolidated financial statements.
13
16
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 1997 and 1996
NOTE 1 - BACKGROUND AND DESCRIPTION OF PLANS:
All employee and employer contributions are made pursuant to the terms of
the Consolidated Natural Gas Company (the "Corporation") Thrift Plans ("Plans")
and are held in funds administered by trustees under four declarations of trust,
i.e., the Alternate Thrift Trust, the General Thrift Trust, the Long-Term Thrift
Trust and the Short-Term Thrift Trust implementing the following Plans:
1. System Thrift Plan of Consolidated Natural Gas Company and Its
Participating Subsidiaries for Employees Who Are Not Represented by a
Recognized Union ("System Thrift Plan")
2. Thrift Plan of The East Ohio Gas Company for Employees
Represented by The Natural Gas Workers Union, Local 555, SEIU, AFL-CIO
3. Thrift Plan of CNG Transmission Corporation and Hope Gas, Inc.
for Employees Represented by Allegheny Mountain Gas Workers' Union,
Local No. 999, SEIU, AFL-CIO
4. Thrift Plan of The Peoples Natural Gas Company for Employees
Represented by Gas Employees' Union, Local 666, SEIU, AFL-CIO
5. Thrift Plan of The River Gas Division of The East Ohio Gas Company
for Employees Represented by Allegheny Mountain Gas Workers' Union,
Local 999, SEIU, AFL-CIO
6. Thrift Plan of Consolidated Natural Gas Service Company Inc., for
Employees of the Computer Operations Department Represented by The Natural
Gas Workers Union, Local 555, SEIU, AFL-CIO
7. Thrift Plan of West Ohio Gas Company for Employees Represented by
Local Union No. 308-C, The Utility Workers Union of America, AFL-CIO
8. Thrift Plan of West Ohio Gas Company for Employees Represented by
Local Union No. 308, The Utility Workers Union of America, AFL-CIO
9. Virginia Natural Gas, Inc. Employee Savings Plan
10. Virginia Natural Gas, Inc. Hourly Savings Plan
Under the Plans, participants may elect to contribute not less than 2% nor
more than 16% (15% for participants with thirty or more years of service and
participants in the Thrift Plan of The Peoples Natural Gas Company For Employees
Represented By Gas Employees' Union) of their earnings each pay period, in
multiples of 1%. If the participant elects that his employer make pretax
contributions on his behalf, such contributions must be an amount which is not
more than 6% (10% for participants in the System Thrift Plan and the Virginia
Natural Gas, Inc. Employee Savings Plan and the Virginia Natural Gas, Inc.
Hourly Savings Plan "VNG Plans"), in multiples of 1%, of his earnings each pay
period subject to applicable Internal Revenue Code limitations.
Participants are immediately vested in their contributions plus actual
earnings thereon. Vesting in the employer's matching contribution portion of
their account plus actual earnings thereon is based on years of continuous
service. A participant is 100% vested after five years of credited service. The
employer's matching contribution, except for the VNG Plans, is based upon the
participant's contribution rate and length of service. Under the VNG Plans, the
employer's matching contribution is based only on the participant's contribution
rate.
14
17
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
June 30, 1997 and 1996
The following description of the Plans provides only general
information. Participants should refer to the Thrift Plans' Prospectus and
Summary Plan Descriptions for a more complete description of the Plans'
provisions.
The participants in the Plans are eligible employees of Consolidated
Natural Gas Company and its participating subsidiaries. Each employee is
eligible to participate in his employer's thrift plan on an entirely voluntary
basis. Participation by an employee becomes effective immediately upon
completion and delivery to the employer of an authorization form furnished by
the employer. All union eligible hourly employees of Virginia Natural Gas, Inc.
("VNG") may elect to participate in the Virginia Natural Gas, Inc. Hourly
Savings Plan to be effective on the first day of any January, April, July or
October after they have attained age eighteen and have been employed for six
months. The Plans are subject to the provisions of the Employee Retirement
Income Security Act of 1974 (ERISA).
Alternate Thrift Trust
----------------------
All monies, except for monies attributable to the VNG Plans, received by
the Trustees of the Alternate Thrift Trust are invested under any one or more of
the following four options in multiples of 25%: (1) Corporation common stock,
(2) units of participation in a Diversified Fund composed of securities other
than securities of the Corporation and companies primarily engaged in the
natural gas business, (3) the Fixed Investment Fund and (4) the General
Investments Fund.
Under the VNG Plans, all company matching contributions are invested in
Corporation common stock. Employee contributions, both after-tax and elected
pre-tax, are invested under any one or more of the following two options in
multiples of 50%: (1) Corporation common stock and (2) the General Investments
Fund.
The Corporation common stock investment provision of the Alternate Thrift
Trust permits the participant to direct the Trustees to purchase shares of
Corporation common stock continuously or from cash accumulated in his account.
Corporation common stock purchased is registered in the name of the Trustees and
credited to the participant's account. Dividends on Corporation common stock
registered in the Trustees' name are received and credited to the participant's
account and invested in accordance with the Plans. Dividends on DRI common stock
registered in the Trustees' name are received and credited to the participant's
account and invested in additional shares of Corporation common stock. Except
under the VNG Plans, upon written request the participant may purchase all or
any portion of Corporation common stock credited to his account at the then
current market price and the cash proceeds of any such sale shall be credited by
the Trustees to his account.
Under the Diversified Fund investment provision of the Alternate Thrift
Trust, the participant may direct the Trustees to use all or part of the cash
credited to his account to purchase units of participation in the Diversified
Fund or he may direct them to purchase units continuously. Also, the participant
may direct the Trustees to sell any units in his account. The price at which
such units are purchased or sold is derived by dividing the month-end market
value of net assets of the Diversified Fund by the number of units then credited
to all participants' accounts.
Cash may be deposited in a Fixed Investment Fund which is invested through
group annuity contracts with one or more insurance companies. Investments under
the contracts mature at various intervals. The interest rates credited monthly
to participants' accounts represent a composite of the income earned under the
contracts with the insurance companies. The average yield and crediting interest
rates for the fiscal years ended June 30, 1997 and 1996 were 6.4% and 6.6%,
respectively.
Cash deposited in the Alternate Thrift Trust which is not invested in the
Corporation's common stock, the Diversified Fund, or the Fixed Investment Fund
is invested in the General Investments Fund. This fund is invested in authorized
securities and savings accounts. The earnings thereon are credited pro rata to
participants' accounts at the end of each month.
15
18
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
June 30, 1997 and 1996
In addition, a participant, except for those participating in the VNG
Plans, may convert funds from the above mentioned investment options to a loan
account for the purpose of making a loan. Loan repayments, including principal
and interest, are deposited in the participant's account and invested in
accordance with the participant's then current investment direction.
General Thrift Trust
--------------------
All monies received by the Trustees of the General Thrift Trust are
invested in the General Investments Fund of the General Thrift Trust and
allocated to participants' accounts. All or a portion of such monies, except
earnings on contributions made after January 1, 1987, may be used to purchase
Corporation common stock based on the direction of the participants. Such stock
acquired by the Trustees is registered in the name of the Trustees and credited
to the participant's account. Dividends received by the Trustees on such stock
are deposited in participants' accounts and are subject to the withdrawal
provisions of the General Thrift Trust. Shares purchased prior to January 1,
1982, are registered in the names of participants and are held by the Trustees.
Dividends on pre-1982 shares are paid directly to the participant.
The General Investments Fund is invested in authorized securities and
savings accounts. The earnings thereon are credited pro rata to participants'
accounts at the end of each month.
The withdrawal provision of the General Thrift Trust permits the
participant to withdraw his contributions and earnings thereon, in cash and/or
Corporation common stock, from his account. In addition, a participant may
substitute cash for stock equal to the cost of Corporation common stock held
for him by the Trustees.
The VNG Plans do not participate in the General Thrift Trust.
Long-Term Thrift Trust
----------------------
All monies received by the Trustees of the Long-Term Thrift Trust are
invested in units of participation under any one or more of the following ten
options in 1% increments: (1) the CNG Stock Fund, (2) the Diversified Equity
Fund, (3) the S&P 500 Index Fund, (4) the Small Stock Fund, (5) the
International Equity Fund, (6) the Fixed Investment Stable Value Fund,
(7) the Intermediate Bond Fund, (8) the Conservative Balanced Fund,
(9) the Moderate Balanced Fund and (10) the Growth Balanced Fund.
In addition, a participant may convert funds from the above mentioned
investment options to a loan account for the purpose of making a loan. Loan
repayments, including principal and interest, are deposited in the
participant's account and invested in accordance with the participant's then
current investment direction.
Each of the investment options is valued daily. Participants may
transfer funds as often as daily among the investment options. Certain
restrictions apply to the amount of funds which can be transferred from the
CNG Stock Fund to other investment options.
The CNG Stock Fund is invested primarily in shares of Corporation common
stock. Participants may direct the Trustees to purchase units of participation
in the CNG Stock Fund continuously or from funds transferred from other
investment options. Dividends on Corporation common stock held in the CNG
Stock Fund are invested in additional units of the CNG Stock Fund and credited
to participants' accounts.
16
19
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
June 30, 1997 and 1996
The Fixed Investment Stable Value Fund is invested through group annuity
contracts with one or more insurance companies and other short-term fixed income
securities. Investments under the contracts mature at various intervals. The
interest rates credited daily to participants' accounts represent a composite of
the income earned under the contracts with the insurance companies and the
revenue earned from short-term fixed income securities. The average yield and
crediting interest rates for the fiscal year ended June 30, 1997 and 1996
was 6.4% and 6.6%, respectively.
The Diversified Equity Fund is a commingled fund invested primarily in the
common stocks of large U.S. Companies.
The S&P 500 Index Fund is a fund of a registered investment company that
invests proportionately in all or nearly all of the stocks that are included in
the Standard & Poor's 500 Stock Index.
The Small Stock Fund is a fund of a registered investment company that
invests in stocks of small to mid-sized U.S. companies.
The International Equity Fund is a fund of a registered investment company
that invests in stocks of large non-U.S. companies.
The Intermediate Bond Fund is a fund of a registered investment company
that invests primarily in fixed income securities of various maturities such as
obligations of the U.S. Government, corporate debt securities, mortgage and
other asset-backed securities and money-market investments.
The Conservative Balanced Fund, the Moderate Balanced Fund and the Growth
Balanced Fund are common/collective trusts and each is designed to accomplish a
specific investment objective. To accomplish this, each fund has a different
diversified mix of stock, bond and short-term fixed income investments.
Short-Term Thrift Trust
-----------------------
All monies received by the Trustees of the Short-Term Thrift Trust are
invested in units of participation in the Money Market Fund. The Money Market
Fund is a common/collective trust invested primarily in U.S. Treasury Bills,
U.S. Treasury Notes, corporate notes, commercial paper, floating rate notes and
repurchase agreements.
The withdrawal provision of the Trust permits the participant to withdraw
his contributions and earnings thereon in cash from his account.
17
20
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
June 30, 1997 and 1996
NOTE 2 - SUMMARY OF ACCOUNTING POLICIES:
Significant accounting policies used in the preparation of the accompanying
consolidated financial statements are described below.
Basis of Accounting
The accounting records of the Plans are maintained on the accrual basis.
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from
those estimates.
Forfeited Accounts
Forfeited nonvested accounts are used to reduce employer
contributions. During the fiscal year ending June 30, 1997, employer
contributions were reduced by $432,700 from forfeited accounts.
Investments
Investments in securities are stated as follows:
1. Consolidated Natural Gas Company common stock, herein called
"Corporation common stock", which is held for the account of individual
participants, is stated at quoted market value. Corporation common stock
has been purchased for participants on the open market, directly from the
Corporation and in certain circumstances shares or fractional shares from
terminating employees' Thrift Plan and Employee Stock Ownership Plan
accounts and other stockholders. Such shares or fractional shares were
allocated among the accounts of participants directing the Trustees to
purchase Corporation common stock.
2. Dominion Resources, Incorporated ("DRI") common stock, which is
held for the account of individual participants in the Virginia Natural
Gas, Inc. Employee Savings Plan and Virginia Natural Gas, Inc. Hourly
Savings Plan, successors to the Virginia Power Employee Savings Plan and
Virginia Power Hourly Savings Plan ("Predecessor Plans"), respectively, is
stated at quoted market value. The Predecessor Plans were sponsored by
Virginia Electric & Power Company, a subsidiary of DRI.
18
21
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
June 30, 1997 and 1996
3. Securities, registered investment company holdings,
common/collective trusts and other investments are stated at quoted
market value, except for temporary investments which are stated at cost
which approximates market value.
4. The Fixed Investment Fund and Fixed Investment Stable Value
Fund are stated at contract value. Contract value represents contributions
and income earned in the fund, less withdrawals. The fair market value of
the contracts approximates the contract value.
Dividends received on all shares of Corporation common stock held in the
Alternate Thrift Trust, except for the VNG Plans, are invested in accordance
with the participant's investment direction under the terms of the Plans.
However, if any portion of a participant's investment is directed to the
purchase of Corporation common stock, all dividends on Corporation common stock
are invested in such stock. Under the VNG Plans, all dividends on Corporation
common stock are reinvested in such stock. Dividends received on all shares of
DRI common stock held in the Alternate Thrift Trust are invested in additional
shares of Corporation common stock. Dividends received on all shares of
Corporation common stock held in the Long-Term Thrift Trust are reinvested in
additional units in the CNG Stock Fund.
Diversified Fund Units of the Alternate Thrift Trust are prorated to
participants on the basis of unit cost calculated at the end of each month.
Diversified Equity Fund Units of the Long-Term Thrift Trust are prorated to
participants based on the unit value calculated at the end of each day.
Realized gains and losses on the sale of investments are determined using
the average cost method.
Participants in the System Thrift Plan bear the investment management,
marketing, transfer agent and administrative expenses for each investment option
under the System Thrift Plan, except the Fixed Investment Stable Value Fund.
Administrative expenses of the VNG Plans are borne by the participants.
Administrative expenses borne by the participants are insignificant and have
been netted against interest income, where applicable. Participating employers
bear all other administrative expenses of the Plans and of the General,
Alternate, Short-Term and Long-Term Thrift Trusts ("Trusts"). Brokerage and
similar charges are included in the participants transaction costs.
The Trusts are maintained in accordance with the Plans to provide for the
custody and investment of employee and employer contributions. They are
administered by individual trustees (the "Trustees") who are appointed by and
serve at the pleasure of the Corporation for a term of three years. The Trustees
are employed by and are officers of various subsidiary companies of the
Corporation. The Trustees serve without compensation from the Plans or Trusts.
NOTE 3 - TAX STATUS OF THE PLANS:
Tax counsel for the Corporation is of the opinion that the Plans, as
amended, meet the requirements for qualification under Section 401(a) of the
Internal Revenue Code. Determination letters in effect for periods prior to
January 1, 1995 (July 2, 1995 for the System Thrift Plan) have been received
with respect to all the Plans. Under present Federal income tax law, the
Trusts are believed to be exempt from taxation on earnings.
19
22
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
JUNE 30, 1997 AND 1996
NOTE 4 - UNITS OF PARTICIPATION AND RELATED UNIT VALUE:
The number of units and unit value of funds held by Diversified Equity
and Diversified Funds and common/collective trusts are as follows:
June 30, 1997 June 30, 1996
-------------------------------- -----------------------------
Units Unit Value Units Unit Value
---------- ---------------- --------- ----------------
Diversified Equity and Diversified Equity Funds ........ 218,937 $182.38 207,676 $150.10
Common/Collective Trusts:
Conservative Balanced Fund ............................ 146,688 $ 14.13 100,039 $ 12.39
Moderate Balanced Fund ................................ 534,225 $ 15.94 373,215 $ 13.24
Growth Balanced Fund .................................. 460,557 $ 16.89 275,291 $ 13.65
NOTE 5 - PLAN AMENDMENTS:
The following amendment was made to the Thrift Plan of Consolidated Natural
Gas Service Company, Inc. for Employees of the Computer Operations Department
Represented by the Natural Gas Workers Union, the Thrift Plan of West Ohio Gas
Company for Employees Represented by Local Union No. 308-C and the Thrift Plan
of the River Gas Division of The East Ohio Gas Company for Employees Represented
by Allegheny Mountain Gas Workers' Union effective August 19, 1995, September
16, 1995 and November 1, 1995, respectively:
1. Technical changes were made regarding the amount of funds that
may be withdrawn in accordance with the Hardship provisions of
the Plan and the circumstances which may qualify for a hardship
withdrawal.
The System Thrift Plan was amended effective August 13, 1996 to exclude
from participation in the Plan nonresident aliens working outside the United
States who are employed by the Corporation.
NOTE 6 - TRANSACTIONS WITH PARTIES-IN-INTEREST:
Shares of Corporation common stock may be purchased directly from the
Corporation or on the open market. During the fiscal years ended June 30, 1997
and 1996, 1,817 and 7,264 shares at a cost of $100,604 and $322,776,
respectively, were purchased directly from the Corporation.
20
23
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
JUNE 30, 1997 AND 1996
NOTE 7 - PLAN TERMINATION:
Although it has not expressed any intent to do so, the Corporation has the
right under the Plans to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of ERISA and any applicable
collective bargaining agreements. In the event of Plan termination, participants
will become 100 percent vested in their accounts.
NOTE 8 - BENEFIT OBLIGATIONS:
Benefit obligations being processed for distribution to persons who have
withdrawn from participation in the Plans are as follows:
GENERAL AND GENERAL AND
SHORT-TERM TRUSTS SHORT-TERM TRUSTS
------------------------------------------------
JUNE 30, 1997 JUNE 30, 1996
------------- --------------
Consolidated Natural Gas Company
Common Stock Fund ...................................... $ 8,891 $ 30,514
Cash (General Investments and
Money Market Funds) .................................... 40,681 64,563
------------- -------------
Funds Combined .................................. $ 49,572 $ 95,077
============= =============
ALTERNATE AND ALTERNATE AND
LONG-TERM TRUSTS LONG-TERM TRUSTS
------------------------------------------------
JUNE 30, 1997 JUNE 30, 1996
-------------- --------------
Consolidated Natural Gas
Company Common Stock and CNG Stock Funds ............... $ 904,342 $ 2,060,970
Diversified Equity and Diversified Funds ................. 18,072 10,198
Cash (General Investments Fund) ......................... 303,465 194,241
Fixed Investment Stable Value and
Fixed Investment Funds ................................. 122,707 188,429
Participants' Loan Fund ................................. 8,857 84,278
S & P 500 Index Fund ..................................... 60 18,657
Small Stock Fund ......................................... 557 5,382
International Equity Fund ................................ 1,059 2,289
Intermediate Bond Fund ................................... 9 2,676
Conservative Balanced Fund ............................... -- 508
Moderate Balanced Fund ................................... 19,180 --
Growth Balanced Fund ..................................... 1,891 1,079
------------- --------------
Funds Combined .................................. $ 1,380,199 $ 2,568,707
============= ==============
TOTAL FOR TOTAL FOR
ALL PLANS ALL PLANS
------------------------------------------------
JUNE 30, 1997 JUNE 30, 1996
-------------- --------------
Consolidated Natural Gas
Company Common Stock and CNG Stock Funds ............... $ 913,233 $ 2,091,484
Diversified Equity and Diversified Funds ................. 18,072 10,198
Cash .................................................... 344,146 258,804
Fixed Investment Stable Value and
Fixed Investment Funds ................................. 122,707 188,429
Participants' Loan Fund ................................. 8,857 84,278
S & P 500 Index Fund ..................................... 60 18,657
Small Stock Fund ......................................... 557 5,382
International Equity Fund ................................ 1,059 2,289
Intermediate Bond Fund ................................... 9 2,676
Conservative Balanced Fund ............................... -- 508
Moderate Balanced Fund ................................... 19,180 --
Growth Balanced Fund ..................................... 1,891 1,079
------------- --------------
Total for all Plans.............................. $ 1,429,771 $ 2,663,784
============= ==============
21
24
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
JUNE 30, 1997 AND 1996
NOTE 9 - INVESTMENTS:
The following investments represent 5% or more of the combined Plans' net
assets available for benefits:
JUNE 30, 1997 JUNE 30, 1996
------------------ ----------------
Corporation Common Stock Fund ........................ $ 505,386,048 $ 542,839,360
Insurance Company Contracts:
Aetna Life Insurance Company #010463 ............. 90,876,701 79,238,611
Connecticut General Life Insurance
Company #16355 ................................. 55,477,837 47,143,910
NOTE 10 - SUBSEQUENT EVENTS:
The following changes will be made to the Thrift Plan of The East Ohio Gas
Company For Employees Represented By The Natural Gas Workers Union effective
January 1, 1998:
1. Funds in the Alternate Thrift Trust will be transferred to the
Long-Term Thrift Trust, while funds in the General Thrift Trust will be
transferred to the Short-Term Thrift Trust.
2. The Long-Term Trust will offer ten investment choices, including five
stock funds, two fixed income funds and three balanced funds. The
Consolidated Natural Gas Company Common Stock Fund and the Fixed
Investment Fund will continue to be options but will be redesignated as
the CNG Stock Fund and Fixed Investment Stable Value Fund, respectively.
3. Contributions can be invested in any one or more of the ten investment
options in multiples of one percent.
4. The General Investments Fund under the Alternate Thrift Trust will be
eliminated. Participants with balances in this Fund will be required to
reinvest such amounts in the investment options available at that time.
5. Investment options will be valued daily and transfers among options
will be permitted daily.
6. Participants will pay investment management, marketing, transfer agent
and administrative expenses for each investment option, except the
Fixed Investment Stable Value Fund.
7. Participants will pay a $25 loan origination fee.
8. Participants will be able to gradually transfer their balances in the
CNG Stock Fund to any of the other available investment options.
9. Participants will be permitted to contribute up to ten percent of their
regular earnings on a pretax basis, subject to applicable Internal
Revenue Code limitations.
The following changes will be made to the Virginia Natural Gas, Inc.
Hourly Savings Plan effective January 1, 1998:
1. The Plan will offer five investment choices, one stock fund, one fixed
income fund and three balanced funds. The Consolidated Natural Gas
Company Common Stock Fund and the General Investments Fund will continue
to be options.
2. Contributions can be invested in any one or more of the five investment
options in multiples of one percent.
3. Transfer among the investment options will be permitted monthly.
4. There will be no age or service requirements for participation.
5. Loans will be permitted under the plan and participants will pay a $25
loan origination fee.
6. Participants will pay investment management, marketing, transfer agent
and administrative expenses for each of the three balanced funds.
22
25
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
ADDITIONAL INFORMATION
SCHEDULE I-SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
JUNE 30, 1997
SHARES, UNITS
DESCRIPTION PRINCIPLE COST OF CURRENT
IDENTITY OF ISSUE OF INVESTMENT AMOUNT ASSET VALUE
- ----------------- ------------- ------ ----------- -------------
GENERAL AND SHORT-TERM THRIFT TRUSTS
Consolidated Natural Gas Company Stock* Company Common Stock 23,583 $ 389,251 $ 1,269,060
Mellon Bank, N.A.* EB Temporary Investment Fund 2,843,803 2,843,803 2,843,803
American Express Credit Company Dated 5/05/97, 5.54%, due 7/02/97 600,000 600,000 600,000
American Express Credit Company Dated 5/08/97, 5.56%, due 7/07/97 575,000 575,000 575,000
American Express Credit Company Dated 5/12/97, 5.54%, due 7/09/97 625,000 625,000 625,000
American Express Credit Company Dated 5/15/97, 5.58%, due 7/02/97 300,000 300,000 300,000
American Express Credit Company Dated 5/19/97, 5.56%, due 7/11/97 150,000 150,000 150,000
American Express Credit Company Dated 5/20/97, 5.60%, due 7/16/97 500,000 500,000 500,000
American Express Credit Company Dated 6/02/97, 5.50%, due 7/02/97 800,000 800,000 800,000
American Express Credit Company Dated 6/09/97, 5.53%, due 8/12/97 850,000 850,000 850,000
American Express Credit Company Dated 6/13/97, 5.54%, due 8/15/97 150,000 150,000 150,000
American Express Credit Company Dated 6/20/97, 5.35%, due 7/02/97 1,050,000 1,050,000 1,050,000
American Express Credit Company Dated 6/30/97, 5.70%, due 7/30/97 450,000 450,000 450,000
American Express Credit Company Dated 6/18/97, 5.59%, due 8/18/97 175,000 175,000 175,000
Associates Corp. of North America Dated 4/18/97, 5.61%, due 7/02/97 500,000 500,000 500,000
Associates Corp. of North America Dated 4/21/97, 5.58%, due 7/02/97 150,000 150,000 150,000
Associates Corp. of North America Dated 4/22/97, 5.53%, due 7/03/97 200,000 200,000 200,000
Associates Corp. of North America Dated 4/25/97, 5.55%, due 7/03/97 175,000 175,000 175,000
Associates Corp. of North America Dated 4/02/97, 5.56%, due 7/01/97 1,130,000 1,130,000 1,130,000
Associates Corp. of North America Dated 5/02/97, 5.55%, due 7/02/97 425,000 425,000 425,000
Associates Corp. of North America Dated 6/26/97, 5.40%, due 7/02/97 400,000 400,000 400,000
Prudential Funding Corporation Notes Dated 5/31/97, 5.53%, due 7/21/97 380,000 380,000 380,000
Prudential Funding Corporation Notes Dated 5/30/97, 5.56%, due 7/28/97 575,000 575,000 575,000
Prudential Funding Corporation Notes Dated 6/05/97, 5.55%, due 8/01/97 200,000 200,000 200,000
Prudential Funding Corporation Notes Dated 6/06/97, 5.54%, due 8/01/97 300,000 300,000 300,000
Loan Fund Participant Loans, interest 8.5% -- 12,665 12,665
* Party-in-interest
23
26
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
ADDITIONAL INFORMATION
SCHEDULE I-SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
(CONTINUED)
JUNE 30, 1997
SHARES, UNITS
DESCRIPTION PRINCIPLE COST OF CURRENT
IDENTITY OF ISSUE OF INVESTMENT AMOUNT ASSET VALUE
- ----------------- ------------- ------ ----------- -------------
ALTERNATE AND LONG-TERM THRIFT TRUSTS
Consolidated Natural Gas Company Stock* Company Common Stock 9,368,004 $ 274,090,593 $ 504,116,988
Dominion Resources, Inc. Common Stock 82,834 2,132,621 3,033,801
Abbott Laboratories Common Stock 2,450 110,518 163,537
Adobe Systems Inc. Common Stock 2,600 86,068 91,164
Air Products & Chemicals, Inc. Common Stock 6,000 469,598 487,500
Albertsons Inc. Common Stock 6,000 196,472 219,000
America Online, Inc. Common Stock 300 14,109 16,688
American Electric Power Co. Common Stock 2,900 119,971 121,620
American Express Co. Common Stock 3,800 133,192 283,100
American International Group Inc. Common Stock 2,525 224,823 377,172
Amgen Inc. Common Stock 2,950 170,486 171,469
Anadarko Petroleum Corp. Common Stock 4,200 194,586 252,000
Atlantic Richfield Co. Common Stock 6,900 439,086 486,450
AT&T Corp. Common Stock 1,500 59,000 52,595
Autoliv Inc. Common Stock 104 3,171 4,069
Avery Dennison Corp. Common Stock 4,600 151,159 184,575
Baker Hughes Inc. Common Stock 5,600 184,786 216,653
Bankamerica Corp. Common Stock 12,800 612,900 826,406
BankBoston Corp. Common Stock 2,000 143,632 144,750
Bank of New York Co. Inc. Common Stock 3,200 122,202 139,600
Barnett Banks Inc. Common Stock 3,500 89,660 183,750
Becton Dickinson & Co. Common Stock 4,500 191,890 227,812
Bed Bath & Beyond Inc. Common Stock 400 11,150 12,150
Bellsouth Corp. Common Stock 3,900 149,851 180,863
Bristol Myers Squibb Co. Common Stock 5,500 192,538 445,500
British Petroleum PLC Common Stock 3,000 214,043 224,625
Cadence Design System Inc. Common Stock 3,800 109,598 127,300
Canadian Pacific LTD. Common Stock 5,700 135,139 162,097
Cardinal Health Inc. Common Stock 3,800 230,202 217,550
Centocor Inc. Common Stock 700 23,882 21,744
Chase Manhattan Corp. Common Stock 6,300 429,057 611,497
Chevron Corp. Common Stock 3,225 197,278 238,450
Chrysler Corp. Common Stock 5,100 158,749 167,662
Cigna Corp. Common Stock 4,900 520,156 869,750
Cisco Systems Inc. Common Stock 2,175 110,469 145,997
Citicorp Common Stock 3,850 412,608 464,168
Coca-Cola Co. Common Stock 500 16,593 34,000
Coca-Cola Enterprises, Inc. Common Stock 1,605 21,453 36,915
Colgate-Palmolive Co. Common Stock 1,600 71,277 104,400
Columbia / HCA Healthcare Corp. Common Stock 3,100 101,128 121,870
Compaq Computer Corp. Common Stock 3,400 195,780 338,300
Computer Associates Int'l, Inc. Common Stock 6,300 308,232 350,834
Computer Sciences Corp. Common Stock 450 34,419 32,456
Conagra Inc. Common Stock 8,800 413,431 564,854
Consolidated Stores Corp. Common Stock 400 12,770 13,900
Cooper Industries Inc. Common Stock 2,200 83,901 109,450
Costco Companies Inc. Common Stock 6,100 212,133 200,538
CSX Corp. Common Stock 1,900 93,522 105,450
Dana Corp. Common Stock 3,500 102,556 133,000
* Party-in-interest
24
27
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
ADDITIONAL INFORMATION
SCHEDULE I-SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
(CONTINUED)
JUNE 30, 1997
SHARES, UNITS
DESCRIPTION PRINCIPLE COST OF CURRENT
IDENTITY OF ISSUE OF INVESTMENT AMOUNT ASSET VALUE
- ----------------- ------------- ------ ----------- -------------
Dayton Hudson Corp. Common Stock 1,900 $ 75,177 $ 101,057
Dominion Resources, Inc. Common Stock 7,400 288,566 271,025
Doubletree Corp. Common Stock 500 20,556 20,562
Dover Corp. Common Stock 2,200 86,479 135,575
Dresser Industries Inc. Common Stock 5,700 207,544 212,325
Duke Energy Corp. Common Stock 3,300 139,590 158,195
Dupont E I DeNemours & Co. Common Stock 10,400 492,021 653,900
Eastman Kodak Co. Common Stock 2,200 134,447 168,850
Electronic Data Systems Corp. Common Stock 2,500 111,294 102,970
El Paso Natural Gas Co. Common Stock 1,300 68,985 71,500
EMC Corp. Common Stock 500 17,843 19,500
Entergy Corp. Common Stock 6,500 174,440 178,750
Federal National Mortgage Association Common Stock 1,000 26,308 43,625
Ford Motor Co. Common Stock 13,900 501,231 528,200
Fruit of the Loom, Inc. Common Stock 2,900 79,879 89,900
General Electric Co. Common Stock 20,100 584,183 1,306,500
General Mills Inc. Common Stock 6,700 410,934 436,338
General Motors Corp. Common Stock 8,500 451,456 473,875
General Reinsurance Corp. Common Stock 3,500 531,410 637,000
Gillette Co. Common Stock 350 22,981 33,162
Glaxo Wellcome PLC Common Stock 3,700 122,494 154,708
GTE Corp. Common Stock 13,300 462,545 583,538
Guidant Corp. Common Stock 675 25,652 57,375
Halliburton Co. Common Stock 1,700 66,734 134,725
Hartford Financial Services Group, Inc. Common Stock 4,800 299,490 397,200
Hasbro Inc. Common Stock 1,500 36,667 42,562
Healthsouth Corp. Common Stock 9,300 200,321 231,923
Hewlett-Packard Co. Common Stock 9,600 534,884 537,600
HFS Inc. Common Stock 5,400 330,446 313,200
Hilton Hotels Corp. Common Stock 6,800 184,397 181,050
Home Depot Inc. Common Stock 10,800 510,293 745,200
Honeywell Inc. Common Stock 3,675 268,889 278,841
Host Marriott Corp. Common Stock 3,500 45,583 62,345
Intel Corp. Common Stock 5,975 563,975 847,333
International Business Machines Corp. Common Stock 3,800 255,168 342,950
Johnson & Johnson Common Stock 12,100 411,590 778,937
Kerr-McGee Corp. Common Stock 3,300 202,186 209,138
Kimberly Clark Corp. Common Stock 850 36,760 42,287
Komag Inc. Common Stock 2,400 78,080 39,300
Lilly (Eli) & Co. Common Stock 1,100 48,971 120,244
Liz Claiborne Inc. Common Stock 2,600 117,801 121,225
Lowes Companies Inc. Common Stock 6,500 256,300 241,313
Lucent Technologies Inc. Common Stock 3,548 175,647 255,680
Marsh & McLennan Companies Inc. Common Stock 8,200 349,152 585,275
25
28
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
ADDITIONAL INFORMATION
SCHEDULE I-SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
(CONTINUED)
JUNE 30, 1997
SHARES, UNITS
DESCRIPTION PRINCIPLE COST OF CURRENT
IDENTITY OF ISSUE OF INVESTMENT AMOUNT ASSET VALUE
- ----------------- ------------- ------ ----------- -------------
McKesson Corp. Common Stock 1,800 $118,611 $ 139,500
Medtronic Inc. Common Stock 2,000 134,288 165,000
Merck & Co. Inc. Common Stock 10,550 711,380 1,079,402
Microsoft Corp. Common Stock 6,800 706,294 859,350
Monsanto Co. Common Stock 3,800 152,561 163,639
Morgan Stanley Dean Witter Discover & Co. Common Stock 11,400 269,382 490,918
Newbridge Networks Corp. Common Stock 1,000 32,474 43,500
Nextel Communications Inc. Common Stock 1,000 14,500 18,938
Nike Inc. Common Stock 3,300 185,101 192,638
Nine West Group Inc. Common Stock 4,400 202,638 168,027
Nokia Corp. Common Stock 500 17,173 36,875
Norfolk Southern Corp. Common Stock 2,400 202,022 241,800
Northrop Grumman Corp. Common Stock 3,200 236,789 281,002
Ogden Corp. Common Stock 1,428 31,531 31,059
Olsten Corp. Common Stock 2,500 50,719 48,595
Oracle Corp. Common Stock 3,900 152,956 196,463
Parametric Technology Corp. Common Stock 2,000 84,801 85,126
Pepsico Inc. Common Stock 9,500 351,780 356,849
Perkin Elmer Corp. Common Stock 2,300 161,362 182,995
Petsmart Inc. Common Stock 400 8,363 4,600
Pfizer Inc. Common Stock 1,290 56,847 77,077
Philip Morris Companies Inc. Common Stock 14,500 363,957 641,625
Phillips Petroleum Co. Common Stock 14,200 478,284 621,250
Pitney Bowes Inc. Common Stock 3,900 158,404 271,050
Praxair Inc. Common Stock 3,800 186,212 212,800
Procter & Gamble Co. Common Stock 5,800 762,743 819,250
Raychem Corp. Common Stock 1,900 134,720 141,313
Sara Lee Corporation Common Stock 1,800 51,099 74,925
SBC Communications Inc. Common Stock 2,600 136,350 160,875
Schering-Plough Corp. Common Stock 5,400 135,530 258,525
Schlumberger Limited Common Stock 600 67,230 75,000
Sigma-Aldrich Corp. Common Stock 2,000 49,318 70,126
Smithkline Beecham PLC Common Stock 2,800 160,576 256,550
Sterling Communications Inc. Common Stock 900 30,135 29,587
Sun Microsystems Inc. Common Stock 3,400 112,250 126,545
Sundstrand Corp. Common Stock 700 22,563 37,800
Texaco Inc. Common Stock 3,400 304,734 369,750
Texas Utilities Co. Common Stock 5,500 217,413 189,409
26
29
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
ADDITIONAL INFORMATION
SCHEDULE I-SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
(CONTINUED)
JUNE 30, 1997
SHARES, UNITS
DESCRIPTION PRINCIPLE COST OF CURRENT
IDENTITY OF ISSUE OF INVESTMENT AMOUNT ASSET VALUE
- ----------------- ------------- ------ ----------- -------------
Tektronix Inc. Common Stock 1,300 $ 72,488 $ 78,000
Textron Inc. Common Stock 7,300 425,276 484,537
Time Warner Inc. Common Stock 3,500 153,856 168,875
Tyco International Ltd. Common Stock 500 29,166 34,782
Unicom Corp. Common Stock 6,400 172,308 142,400
Union Electric Co. Common Stock 4,200 157,324 158,290
United Technologies Corp. Common Stock 13,600 857,813 1,128,800
Unocal Corp. Common Stock 9,000 296,954 351,000
UST Inc. Common Stock 3,500 108,573 97,783
USX - Marathon Group Common Stock 6,400 175,433 184,800
Wal-Mart Stores Inc. Common Stock 6,400 152,917 216,403
Warner-Lambert Co. Common Stock 1,000 76,056 124,250
Whitman Corp. Common Stock 1,800 34,211 43,200
Worldcom Inc. Common Stock 2,200 40,664 70,400
Xerox Corp. Common Stock 7,300 375,796 575,788
The Chase Manhattan Bank, N.A. Domestic Liquidity Fund 16,845 16,845 16,845
Mellon Bank, N.A.* EB Temporary Investment Fund 13,183,494 13,183,494 13,183,494
Aetna Life Insurance Company General Asset/Separate Accounts 90,876,701 90,876,701 90,876,701
Connecticut General Life Insurance Company General Asset Account 55,477,837 55,477,837 55,477,837
Continental Assurance Company Separate Account 42,379,831 42,379,831 42,379,831
John Hancock Mutual Life Insurance Company General Asset Account 39,351,933 39,351,933 39,351,933
Pacific Mutual Life Insurance Company Separate Account 4,466,945 4,466,945 4,466,945
Metropolitan Life Insurance Company Separate Account 45,331,439 45,331,439 45,331,439
American Express Credit Corporation Dated 6/17/97, 5.50%, due 7/01/97 800,000 800,000 800,000
American Express Credit Corporation Dated 6/20/97, 5.35%, due 7/01/97 400,000 400,000 400,000
American Express Credit Corporation Dated 6/27/97, 5.56%, due 7/01/97 1,000,000 1,000,000 1,000,000
American Express Credit Corporation Dated 6/09/97, 5.52%, due 7/09/97 560,000 560,000 560,000
American Express Credit Corporation Dated 6/23/97, 5.53%, due 7/23/97 125,000 125,000 125,000
Associates Corp. of North America Dated 6/30/97, 5.56%, due 7/30/97 400,000 400,000 400,000
Prudential Funding Corporation Dated 6/05/97, 5.51%, due 7/07/97 150,000 150,000 150,000
INVESCO Trust Co. Equity Fund Registered Investment Co. Holdings 85,605 1,761,121 2,741,066
MasterWorks S&P 500 Stock Fund Registered Investment Co. Holdings 889,202 13,621,037 16,885,948
Pegasus Mid-Cap Opportunity Fund Registered Investment Co. Holdings 574,339 9,734,045 11,532,732
PIMCO Total Return Fund Registered Investment Co. Holdings 295,185 3,057,208 3,105,348
RCM Growth Equity Fund Inc. Registered Investment Co. Holdings 68,683 431,373 478,035
T. Rowe Price International Stock Fund Registered Investment Co. Holdings 564,453 7,465,043 8,715,157
Capital Guardian Conservative Account Common/Collective Trust 146,688 1,911,784 2,072,703
Capital Guardian Moderate Account Common/Collective Trust 534,225 7,142,684 8,515,599
Capital Guardian Growth Account Common/Collective Trust 460,557 6,323,676 7,778,819
Loan Fund Participant Loans, interest 8.5% -- 9,467,059 9,467,059
------------ ------------
Total $674,234,486 $924,459,837
============ ============
* Party-in-interest
27
30
THRIFT PLANS OF CONSOLIDATED NATURAL GAS COMPANY AND
ITS PARTICIPATING SUBSIDIARIES
ADDITIONAL INFORMATION
SCHEDULE II-SCHEDULE OF REPORTABLE TRANSACTION
JUNE 30, 1997
NUMBER OF PURCHASE SELLING COST OF NET
PARTY INVOLVED DESCRIPTION OF ASSET TRANSACTIONS PRICE PRICE ASSET GAIN/(LOSS)
- -------------- -------------------- ------------ --------- ------- ------- -----------
Mellon Bank, N.A. EB Temporary Investment Fund 511 75,520,595
485 73,441,274 73,441,274 0
28
31
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Trustees have duly caused this annual report to be signed by the undersigned
thereunto duly authorized.
THRIFT PLANS OF CONSOLIDATED NATURAL GAS
COMPANY AND ITS PARTICIPATING SUBSIDIARIES
(Name of Plan)
By Donald W. Borneman
-----------------------------
(DONALD W. BORNEMAN, Trustee)
Dated: January 12, 1998
29
32
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (Nos. 2-77204, 2-97948, 33-40478, 33-44892 and 333-18783)
and Form S-3 (Nos. 33-1040, 33-52585, 33-63931 and 333-10869) of Consolidated
Natural Gas Company of our report dated January 12, 1998, appearing on page 1 of
this Form 11-K.
PRICE WATERHOUSE LLP
600 Grant Street
Pittsburgh, PA 15219
January 12, 1998