1
PAGE 1
================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1998
THRIFT PLAN FOR EMPLOYEES OF
CONOCO INC.
(FULL TITLE OF THE PLAN)
CONOCO INC.
600 NORTH DAIRY ASHFORD ROAD
HOUSTON, TX 77079
(NAME AND ADDRESS OF PRINCIPAL EXECUTIVE OFFICE OF ISSUER)
================================================================================
2
PAGE 2
INDEX
Page(s)
Report of Independent Accountants ............................ 4
Financial Statements:
Statements of Net Assets Available for Plan
Benefits, With Fund Information as of
December 31, 1998 and 1997 ......................... 5-16
Statements of Changes in Net Assets Available
for Plan Benefits, with Fund Information for
the Years Ended December 31, 1998 and 1997 .......... 17-28
Notes to the Financial Statements ....................... 29-39
Supplemental Schedules:
Schedule I: Schedule of Assets Held for Investment
Purposes at December 31, 1998 ....................... 40-42
Schedule II: Schedule of Reportable Transactions
For the Year Ended December 31, 1998 ............... 43
EXHIBITS
Exhibit
Number Description
23 Consent of Independent Accountants 44
- --------------------
*Other supplemental schedules required by Section 2520.103-10 of the Department
of Labor Rules and Regulations for Reporting and Disclosure under ERISA have
been omitted because they are not applicable.
3
PAGE 3
Pursuant to the requirements of the Securities and Exchange Act of
1934, Conoco Inc. has duly caused this Annual Report to be signed by the
undersigned hereunto duly authorized.
Thrift Plan for Employees of
Conoco Inc.
Date: June 3, 1999
By /s/ STEVE THEEDE
-----------------------------------------
Steve Theede
Vice President of Human Resources
4
PAGE 4
REPORT OF INDEPENDENT ACCOUNTANTS
To the Participants of the Thrift Plan for Employees of Conoco Inc. and
the Employee Benefit Plans Board of Conoco Inc.
In our opinion, the financial statements listed in the accompanying
index present fairly, in all material respects, the net assets available for
plan benefits of the Thrift Plan for Employees of Conoco Inc. (the "Plan") at
December 31, 1998 and 1997, and the changes in net assets available for Plan
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 the Plan Administrator, 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 not a required part of the basic financial statements
but is additional information required by ERISA. The Fund Information in the
statements of the net assets available for benefits and the 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 plan
benefits and changes in net assets available for plan benefits of each fund.
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.
PRICEWATERHOUSECOOPERS LLP
Houston, Texas
June 2, 1999
5
PAGE 5
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
DECEMBER 31, 1998
(Dollars in Thousands, Except Unit or Share Values)
Fund Information
-----------------------------------------------------------------------------------------
Barclays Conoco
3-Way DuPont Class A
Fixed Fidelity Asset Common Common
Income Magellan Allocation Stock Loan Stock
Fund Fund Fund Fund Fund Fund
------------ ----------- ---------- ---------- -------- -----------
Investments, at Fair Value
(Notes 1, 2 and 3)
DuPont Company Common Stock
(Cost $516,372) ............... $ 676,304(a)
Conoco Company Class A Common
Stock (Cost $37,858) ......... $ 31,730
Mutual Funds
(Cost $325,108) ............... $ 180,762(a)
Common Collective Trusts
(Cost $138,287) ............... $ 75,582
Short-Term Investments and Cash
(Cost $33,424) ............... $ 32,389 142 60 533 25
Loans to Participants Principal
Balance ....................... $ 35,727
---------- ---------- ---------- ---------- ---------- ----------
32,389 180,904 75,642 676,837 35,727 31,755
Investments, at Contract Value
Fixed Income Fund ................. 1,691,162(a)
---------- ---------- ---------- ---------- ---------- ----------
Total Investments ........... 1,723,551 180,904 75,642 676,837 35,727 31,755
Receivables
Due from Conoco Inc. ............ 2,318 356 166 1,678 831
---------- ---------- ---------- ---------- ---------- ----------
Net Assets Available for Plan
Benefits ........................ $1,725,869 $ 181,260 $ 75,808 $ 678,515 $ 35,727 $ 32,586
========== ========== ========== ========== ========== ==========
Unit or Share Values (Note 2) ........ $ 116.73 $ 120.82 $ 25.48 $ 53.06 $ 20.75
========== ========== ========== ========== ==========
- ------------------------------
(a) Represents more than 5% of the net assets available for plan benefits.
The accompanying notes are an integral part of these financial statements.
Continued next page
6
PAGE 6
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
DECEMBER 31, 1998 (Continued)
(Dollars in Thousands, Except Unit or Share Values)
Fund Information
-------------------------------------------------------------------------
Merrill
Lynch Merrill
Merrill Small Lynch Merrill
Merrill Merrill Lynch Company Int'l Lynch
Lynch Lynch Basic Stock Stock Equity
Global Capital Value Index Index Index
Holdings Fund A Fund A Tier 2 Tier 2 Tier 6
--------- -------- -------- --------- --------- -----------
Investments, at Fair Value
(Notes 1, 2 and 3)
DuPont Company Common Stock
(Cost $516,372) .................
Conoco Class A Company Common
Stock (Cost $37,858) ...........
Mutual Funds
(Cost $325,108) ................. $ 14,503 $ 27,705 $ 39,493
Common/Collective Trusts
(Cost $138,287) ................. $ 4,434 $ 2,673 $111,491
Short-Term Investments and Cash
(Cost $33,424) ................. 11 22 31 3 2 88
Loans to Participants Principal
Balance.........................
-------- -------- -------- -------- -------- --------
14,514 27,727 39,524 4,437 2,675 111,579
Investments, at Contract Value
Fixed Income Fund ...................
-------- -------- -------- -------- -------- --------
Total Investments ............... 14,514 27,727 39,524 4,437 2,675 111,579
Receivables
Due from Conoco Inc. ................ 38 65 112 20 15 275
-------- -------- -------- -------- -------- --------
Net Assets Available for Plan
Benefits ............................ $ 14,552 $ 27,792 $ 39,636 $ 4,457 $ 2,690 $111,854
======== ======== ======== ======== ======== ========
Unit or Share Values (Note 2) .......... $ 13.40 $ 34.41 $ 38.02 $ 10.78 $ 11.84 $ 84.18
======== ======== ======== ======== ======== ========
- ------------------------------
The accompanying notes are an integral part of these financial statements.
Continued next page
7
PAGE 7
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
DECEMBER 31, 1998 (Continued)
(Dollars in Thousands, Except Unit or Share Values)
Fund Information
-------------------------------------------------------------------------
Conservative Moderate Aggressive
Asset Asset Asset AIM
Allocation Allocation Allocation Equity AIM Fidelity
Portfolio Portfolio Portfolio Constellation A Value A Fund
------------ ---------- ---------- --------------- -------- ---------
Investments, at Fair Value
(Notes 1, 2 and 3)
DuPont Company Common Stock
(Cost $516,372) .................
Conoco Class A Company Common
Stock (Cost $37,858) ...........
Mutual Funds
(Cost $325,108) ................. $ 3,240 $ 7,906 $14,090
Common/Collective Trusts
(Cost $138,287) ................. $ 3,657 $ 7,308 $ 1,612
Short-Term Investments and Cash
(Cost $33,424) ................. 3 6 1 3 6 11
Loans to Participants Principal
Balance .........................
------- ------- ------- ------- ------- -------
3,660 7,314 1,613 3,243 7,912 14,101
Investments, at Contract Value
Fixed Income Fund ...................
------- ------- ------- ------- ------- -------
Total Investments ............... 3,660 7,314 1,613 3,243 7,912 14,101
Receivables
Due from Conoco Inc. ................ 4 14 15 21 36 35
------- ------- ------- ------- ------- -------
Net Assets Available for Plan
Benefits ............................ $ 3,664 $ 7,328 $ 1,628 $ 3,264 $ 7,948 $14,136
======= ======= ======= ======= ======= =======
Unit or Share Values (Note 2) .......... $ 11.69 $ 11.76 $ 12.36 $ 30.52 $ 40.19 $ 36.69
======= ======= ======= ======= ======= =======
- ------------------------------
The accompanying notes are an integral part of these financial statements.
Continued next page
8
PAGE 8
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
DECEMBER 31, 1998 (Continued)
(Dollars in Thousands, Except Unit or Share Values)
Fund Information
---------------------------------------------------------------------
Franklin
Fidelity Fidelity Fidelity Balance Franklin Franklin
Equity Growth & Low-Priced Sheet Custody Small Cap
Income Income Stock Investment Growth I Growth I
--------- -------- ---------- ---------- -------- ---------
Investments, at Fair Value
(Notes 1, 2 and 3)
DuPont Company Common Stock
(Cost $516,372) .................
Conoco Class A Company Common
Stock (Cost $37,858) ...........
Mutual Funds
(Cost $325,108) ................. $ 8,172 $22,127 $11,750 $ 6,408 $ 1,916 $10,907
Common/Collective Trusts
(Cost $138,287) .................
Short-Term Investments and Cash
(Cost $33,424) ................. 7 17 9 5 2 9
Loans to Participants Principal
Balance .........................
------- ------- ------- ------- ------- -------
8,179 22,144 11,759 6,413 1,918 10,916
Investments, at Contract Value
Fixed Income Fund ...................
------- ------- ------- ------- ------- -------
Total Investments ............... 8,179 22,144 11,759 6,413 1,918 10,916
Receivables
Due from Conoco Inc. ................ 32 84 47 25 9 60
------- ------- ------- ------- ------- -------
Net Assets Available for Plan
Benefits ............................ $ 8,211 $22,228 $11,806 $ 6,438 $ 1,927 $10,976
======= ======= ======= ======= ======= =======
Unit or Share Values (Note 2) .......... $ 55.55 $ 45.84 $ 22.85 $ 31.60 $ 31.45 $ 22.57
======= ======= ======= ======= ======= =======
- ------------------------------
The accompanying notes are an integral part of these financial statements.
Continued next page
9
PAGE 9
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
DECEMBER 31, 1998 (Continued)
(Dollars in Thousands, Except Unit or Share Values)
Fund Information
-----------------------------------------------------------------------
Hotchkis Merrill MFS
& Wiley Janus Janus Lynch MFS Total
Int'l Enterprise Mercury Growth A Research A Return A
---------- ----------- --------- ---------- ------------ ----------
Investments, at Fair Value
(Notes 1, 2 and 3)
DuPont Company Common Stock
(Cost $516,372) ...........
Conoco Class A Company Common
Stock (Cost $37,858) .....
Mutual Funds
(Cost $325,108) ........... $ 8,624 $ 1,464 $12,254 $ 7,094 $ 5,284 $ 1,217
Common/Collective Trusts
(Cost $138,287) ...........
Short-Term Investments and Cash
(Cost $33,424) ........... 7 1 10 6 4 1
Loans to Participants Principal
Balance ...................
------- ------- ------- ------- ------- -------
8,631 1,465 12,264 7,100 5,288 1,218
Investments, at Contract Value
Fixed Income Fund .............
------- ------- ------- ------- ------- -------
Total Investments ......... 8,631 1,465 12,264 7,100 5,288 1,218
Receivables
Due from Conoco Inc. .......... 25 8 75 38 21 7
------- ------- ------- ------- ------- -------
Net Assets Available for Plan
Benefits ...................... $ 8,656 $ 1,473 $12,339 $ 7,138 $ 5,309 $ 1,225
======= ======= ======= ======= ======= =======
Unit or Share Values (Note 2) .... $ 23.28 $ 36.22 $ 24.11 $ 21.51 $ 25.15 $ 14.96
======= ======= ======= ======= ======= =======
- ------------------------------
The accompanying notes are an integral part of these financial statements.
Continued next page
10
PAGE 10
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
DECEMBER 31, 1998 (Continued)
(Dollars in Thousands, Except Unit or Share Values)
Fund Information
------------------------- Total
Templeton Templeton All
Foreign I Growth I Funds
---------- ----------- ----------
Investments, at Fair Value
(Notes 1, 2 and 3)
DuPont Company Common Stock
(Cost $516,372) ........... $ 676,304
Conoco Class A Company Common
Stock (Cost $37,858) ..... 31,730
Mutual Funds
(Cost $325,108) ........... $ 7,725 $ 4,770 397,411
Common/Collective Trusts
(Cost $138,287) ........... 206,757
Short-Term Investments and Cash
(Cost $33,424) ........... 6 4 33,424
Loans to Participants Principal
Balance ................... 35,727
---------- ---------- ----------
7,731 4,774 1,381,353
Investments, at Contract Value
Fixed Income Fund ............. 1,691,162
---------- ---------- ----------
Total Investments ......... 7,731 4,774 3,072,515
Receivables
Due from Conoco Inc. .......... 28 17 6,475
---------- ---------- ----------
Net Assets Available for Plan
Benefits ...................... $ 7,759 $ 4,791 $3,078,990
========== ========== ==========
Unit or Share Values (Note 2) .... $ 8.39 $ 16.37
========== ==========
- ------------------------------
The accompanying notes are an integral part of these financial statements.
11
PAGE 11
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
DECEMBER 31, 1997
(Dollars in Thousands, Except Unit or Share Values)
Fund Information
--------------------------------------------------------------------------
Barclays
3-Way DuPont
Fixed Fidelity Asset Common
Income Magellan Allocation Stock Loan
Fund Fund Fund Fund Fund
----------- ---------- ---------- ----------- ----------
Investments, at Fair Value
(Notes 1, 2 and 3)
DuPont Company Common Stock
(Cost $443,865) ............. $ 750,575(a)
Mutual Funds
(Cost $294,603) ............. $ 148,389
Common Collective Trusts
(Cost $140,855) ............. $ 63,489
Short-Term Investments and Cash
(Cost $23,722) ............. $ 23,220 59 25 300
Loans to Participants Principal
Balance ..................... $ 36,156
---------- ---------- ---------- ---------- ----------
23,220 148,448 63,514 750,875 36,156
Investments, at Contract Value
Fixed Income Fund ............... 1,772,699(a)
---------- ---------- ---------- ---------- ----------
Total Investments ......... 1,795,919 148,448 63,514 750,875 36,156
Receivables
Due from Conoco Inc. .......... 2,461 376 171 2,035
---------- ---------- ---------- ---------- ----------
Net Assets Available for Plan
Benefits ...................... $1,798,380 $ 148,824 $ 63,685 $ 752,910 $ 36,156
========== ========== ========== ========== ==========
Unit or Share Values (Note 2) ...... $ 108.61 $ 95.27 $ 20.14 $ 60.06
========== ========== ========== ==========
- ------------------------------
(a) Represents more than 5% of the net assets available for plan benefits.
The accompanying notes are an integral part of these financial statements.
Continued next page
12
PAGE 12
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
DECEMBER 31, 1997 (Continued)
(Dollars in Thousands, Except Unit or Share Values)
Fund Information
------------------------------------------------------------------
Merrill
Lynch Merrill
Merrill Small Lynch Merrill
Merrill Merrill Lynch Company Int'l Lynch
Lynch Lynch Basic Stock Stock Equity
Global Capital Value Index Index Index
Holdings Fund A Fund A Tier 2 Tier 2 Tier 6
-------- ------- ------- ------- ------- -------
Investments, at Fair Value
(Notes 1, 2 and 3)
DuPont Company Common Stock
(Cost $443,865) .............
Mutual Funds
(Cost $294,603) ............. $21,194 $31,930 $43,690
Common/Collective Trusts
(Cost $140,855) ............. $ 4,988 $ 969 $94,160
Short-Term Investments and Cash
(Cost $23,722) ............. 9 13 17 2 38
Loans to Participants Principal
Balance .....................
------- ------- ------- ------- ------- -------
21,203 31,943 43,707 4,990 969 94,198
Investments, at Contract Value
Fixed Income Fund ...............
------- ------- ------- ------- ------- -------
Total Investments ........... 21,203 31,943 43,707 4,990 969 94,198
Receivables
Due from Conoco Inc. ............ 77 93 136 22 10 265
------- ------- ------- ------- ------- -------
Net Assets Available for Plan
Benefits ........................ $21,280 $32,036 $43,843 $ 5,012 $ 979 $94,463
======= ======= ======= ======= ======= =======
Unit or Share Values (Note 2) ...... $ 13.19 $ 34.51 $ 37.80 $ 11.91 $ 9.38 $ 65.44
======= ======= ======= ======= ======= =======
- ------------------------------
The accompanying notes are an integral part of these financial statements.
Continued next page
13
PAGE 13
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
DECEMBER 31, 1997 (Continued)
(Dollars in Thousands, Except Unit or Share Values)
Fund Information
-------------------------------------------------------------------------
Conservative Moderate Aggressive
Asset Asset Asset AIM
Allocation Allocation Allocation Equity AIM Fidelity
Portfolio Portfolio Portfolio Constellation A Value A Fund
------------ ---------- ---------- --------------- ------- --------
Investments, at Fair Value
(Notes 1, 2 and 3)
DuPont Company Common Stock
(Cost $443,865) ...........
Mutual Funds
(Cost $294,603) ........... $2,265 $2,662 $2,283
Common/Collective Trusts
(Cost $140,855) ........... $3,608 $6,649 $2,213
Short-Term Investments and Cash
(Cost $23,722) ........... 1 3 1 1 1
Loans to Participants Principal
Balance ...................
------ ------ ------ ------ ------ ------
3,609 6,652 2,213 2,266 2,663 2,284
Investments, at Contract Value
Fixed Income Fund .............
------ ------ ------ ------ ------ ------
Total Investments ......... 3,609 6,652 2,213 2,266 2,663 2,284
Receivables
Due from Conoco Inc. .......... 3 8 15 13 15 5
------ ------ ------ ------ ------ ------
Net Assets Available for Plan
Benefits ...................... $3,612 $6,660 $2,228 $2,279 $2,678 $2,289
====== ====== ====== ====== ====== ======
Unit or Share Values (Note 2) .... $10.57 $10.54 $10.55 $26.38 $32.42 $29.81
====== ====== ====== ====== ====== ======
- ------------------------------
The accompanying notes are an integral part of these financial statements.
Continued next page
14
PAGE 14
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
DECEMBER 31, 1997 (Continued)
(Dollars in Thousands, Except Unit or Share Values)
Fund Information
----------------------------------------------------------------------
Franklin
Fidelity Fidelity Fidelity Balance Franklin Franklin
Equity Growth & Low-Priced Sheet Custody Small Cap
Income Income Stock Investment Growth I Growth I
-------- -------- ---------- ---------- -------- ---------
Investments, at Fair Value
(Notes 1, 2 and 3)
DuPont Company Common Stock
(Cost $443,865) ...........
Mutual Funds
(Cost $294,603) ........... $ 7,393 $ 7,581 $10,164 $ 6,916 $ 1,526 $10,796
Common/Collective Trusts
(Cost $140,855) ...........
Short-Term Investments and Cash
(Cost $23,722) ........... 3 3 4 3 1 4
Loans to Participants Principal
Balance ...................
------- ------- ------- ------- ------- -------
7,396 7,584 10,168 6,919 1,527 10,800
Investments, at Contract Value
Fixed Income Fund .............
------- ------- ------- ------- ------- -------
Total Investments ......... 7,396 7,584 10,168 6,919 1,527 10,800
Receivables
Due from Conoco Inc. .......... 22 22 40 26 8 48
------- ------- ------- ------- ------- -------
Net Assets Available for Plan
Benefits ...................... $ 7,418 $ 7,606 $10,208 $ 6,945 $ 1,535 $10,848
======= ======= ======= ======= ======= =======
Unit or Share Values (Note 2) .... $ 52.41 $ 38.10 $ 25.13 $ 33.54 $ 27.09 $ 22.93
======= ======= ======= ======= ======= =======
- ------------------------------
The accompanying notes are an integral part of these financial statements.
Continued next page
15
PAGE 15
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
DECEMBER 31, 1997 (Continued)
(Dollars in Thousands, Except Unit or Share Values)
Fund Information
-----------------------------------------------------------------------
Hotchkis Merrill MFS
& Wiley Janus Janus Lynch MFS Total
Int'l Enterprise Mercury Growth A Research A Return A
-------- ---------- ------- -------- ---------- --------
Investments, at Fair Value
(Notes 1, 2 and 3)
DuPont Company Common Stock
(Cost $443,865) ...........
Mutual Funds
(Cost $294,603) ........... $ 7,118 $ 391 $ 1,143 $12,625 $ 2,411 $ 729
Common/Collective Trusts
(Cost $140,855) ...........
Short-Term Investments and Cash
(Cost $23,722) ........... 3 5 1
Loans to Participants Principal
Balance ...................
------- ------- ------- ------- ------- -------
7,121 391 1,143 12,630 2,412 729
Investments, at Contract Value
Fixed Income Fund .............
------- ------- ------- ------- ------- -------
Total Investments ......... 7,121 391 1,143 12,630 2,412 729
Receivables
Due from Conoco Inc. .......... 21 2 8 66 12 1
------- ------- ------- ------- ------- -------
Net Assets Available for Plan
Benefits ...................... $ 7,142 $ 393 $ 1,151 $12,696 $ 2,424 $ 730
======= ======= ======= ======= ======= =======
Unit or Share Values (Note 2) .... $ 22.67 $ 30.48 $ 16.50 $ 28.65 $ 21.29 $ 15.82
======= ======= ======= ======= ======= =======
- ------------------------------
The accompanying notes are an integral part of these financial statements.
Continued next page
16
PAGE 16
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
DECEMBER 31, 1997 (Continued)
(Dollars in Thousands, Except Unit or Share Values)
Fund Information
-----------------------
Total
Templeton Templeton All
Foreign I Growth I Funds
--------- --------- -----
Investments, at Fair Value
(Notes 1, 2 and 3)
DuPont Company Common Stock
(Cost $443,865) ........... $ 750,575
Mutual Funds
(Cost $294,603) ........... $ 7,569 $ 4,717 333,492
Common/Collective Trusts
(Cost $140,855) ........... 176,076
Short-Term Investments and Cash
(Cost $23,722) ........... 3 2 23,722
Loans to Participants Principal
Balance ................... 36,156
---------- ---------- ----------
7,572 4,719 1,320,021
Investments, at Contract Value
Fixed Income Fund ............. 1,772,699
---------- ---------- ----------
Total Investments ......... 7,572 4,719 3,092,720
Receivables
Due from Conoco Inc. .......... 29 20 6,030
---------- ---------- ----------
Net Assets Available for Plan
Benefits ...................... $ 7,601 $ 4,739 $3,098,750
========== ========== ==========
Unit or Share Values (Note 2) .... $ 9.95 $ 19.40
========== ==========
- ------------------------------
The accompanying notes are an integral part of these financial statements.
17
PAGE 17
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1998
(Dollars in Thousands)
Fund Information
-----------------------------------------------------------------------------
Barclays Conoco
3-Way DuPont Class A
Fixed Fidelity Asset Common Common
Income Magellan Allocation Stock Loan Stock
Fund Fund Fund Fund Fund Fund
------ -------- ---------- ------- ---- -------
Investment income
Interest ........................... $ 128,690 $ 45 $ 20 $ 210 $ 2,927 $ 2
Dividends .......................... 8,736 16,759
Distribution of loan
interest income .................. 1,225 146 73 1,058 (2,927) 93
Net appreciation(depreciation)
in fair value of investments ..... 38,041 16,403 (97,628) (6,236)
----------- ----------- ----------- ----------- ----------- -----------
Total investment income .......... 129,915 46,968 16,496 (79,601) (6,141)
Contributions
Conoco Inc. contributions
(net of forfeitures applied
of $5) ........................... 10,177 1,534 696 8,266 690
Participants ....................... 13,384 2,456 1,082 11,986 9 1,064
Rollovers .......................... 18,486 183 512 1,970 31
----------- ----------- ----------- ----------- ----------- -----------
171,962 51,141 18,786 (57,379) 9 (4,356)
----------- ----------- ----------- ----------- ----------- -----------
Withdrawals ........................... (195,975) (7,274) (4,298) (29,483) (1,767) (279)
Net transfers among funds
Loans .............................. (8,959) (829) (516) (4,611) 16,318 (32)
Loan principal payments ............ 6,341 767 419 5,178 (15,084) 490
Interfund transfers ................ (43,198) (10,986) (2,230) 11,863 36,763
Affiliated company
Transfers in (out), net ............ (2,682) (383) (38) 37 95
----------- ----------- ----------- ----------- ----------- -----------
(244,473) (18,705) (6,663) (17,016) (438) 36,942
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) .............. (72,511) 32,436 12,123 (74,395) (429) 32,586
Net assets available for plan benefits:
Beginning of year .................. 1,798,380 148,824 63,685 752,910 36,156
----------- ----------- ----------- ----------- ----------- -----------
End of year ........................ $ 1,725,869 $ 181,260 $ 75,808 $ 678,515 $ 35,727 $ 32,586
=========== =========== =========== =========== =========== ===========
- --------------------------
The accompanying notes are an integral part of these financial statements.
Continued next page
18
PAGE 18
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1998
(Dollars in Thousands)
Fund Information
---------------------------------------------------------------------------------
Merrill
Lynch Merrill
Merrill Small Lynch Merrill
Merrill Merrill Lynch Company Int'l Lynch
Lynch Lynch Basic Stock Stock Equity
Global Capital Value Fund Fund Index
Holdings Fund A Fund A Tier 2 Tier 2 Tier 6
-------- ------- ------- ------- ------- --------
Investment income
Interest ........................ $ 6 $ 9 $ 11 $ 1 $ 1 $ 23
Dividends ....................... 2,083 1,864 3,505
Distribution of loan
interest income ............... 18 26 42 8 5 96
Net appreciation(depreciation)
in fair value of investments .. 898 (38) 1,072 (127) 722 25,186
--------- --------- --------- --------- --------- ---------
Total investment income ....... 3,005 1,861 4,630 (118) 728 25,305
Contributions
Conoco Inc. contributions
(net of forfeitures applied
of $5) ........................ 237 329 556 89 59 1,150
Participants .................... 380 551 895 158 97 1,908
Rollovers ....................... 22 42 52 16 7 274
--------- --------- --------- --------- --------- ---------
3,644 2,783 6,133 145 891 28,637
--------- --------- --------- --------- --------- ---------
Withdrawals ........................ (893) (2,171) (3,717) (358) (59) (5,781)
Net transfers among funds
Loans ........................... (92) (200) (216) (37) (17) (273)
Loan principal payments ......... 98 142 240 34 22 582
Interfund transfers ............. (9,503) (4,833) (6,748) (399) 874 (5,932)
Affiliated company
Transfers in (out), net ......... 18 35 101 60 158
--------- --------- --------- --------- --------- ---------
(10,372) (7,027) (10,340) (700) 820 (11,246)
--------- --------- --------- --------- --------- ---------
Net increase (decrease) ........... (6,728) (4,244) (4,207) (555) 1,711 17,391
Net assets available for plan benefits
Beginning of year ............... 21,280 32,036 43,843 5,012 979 94,463
--------- --------- --------- --------- --------- ---------
End of year ..................... $ 14,552 $ 27,792 $ 39,636 $ 4,457 $ 2,690 $ 111,854
========= ========= ========= ========= ========= =========
- --------------------------
The accompanying notes are an integral part of these financial statements.
Continued next page
19
PAGE 19
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1998
(Dollars in Thousands)
Fund Information
-------------------------------------------------------------------------------
Conserva- Moderate Aggressive AIM
tive Asset Asset Asset Equity
Allocation Allocation Allocation Constella- AIM Fidelity
Portfolio Portfolio Portfolio tion A Value A Fund
---------- ---------- ---------- ---------- ------- --------
Investment income
Interest ........................... $ 1 $ 1 $ 1 $ 2 $ 2
Dividends .......................... 80 453 693
Distribution of loan
interest income .................. $ 2 6 3 4 7 8
Net appreciation(depreciation)
in fair value of investments ..... 364 676 348 418 913 1,575
-------- -------- -------- -------- -------- --------
Total investment income .......... 366 683 352 503 1,375 2,278
Contributions
Conoco Inc. contributions
(net of forfeitures applied
of $5) ........................... 22 50 66 71 112 81
Participants ....................... 32 88 106 133 203 156
Rollovers .......................... 638 8 29 63 34
-------- -------- -------- -------- -------- --------
420 1,459 532 736 1,753 2,549
-------- -------- -------- -------- -------- --------
Withdrawals ........................... (239) (531) (300) (115) (184) (792)
Net transfers among funds
Loans .............................. (6) (9) (6) (12)
Loan principal payments ............ 5 18 13 17 30 38
Interfund transfers ................ (134) (272) (836) 347 3,676 10,064
Affiliated company
Transfers in (out), net ............ 1
-------- -------- -------- -------- -------- --------
(368) (791) (1,132) 249 3,517 9,298
-------- -------- -------- -------- -------- --------
Net increase (decrease) .............. 52 668 (600) 985 5,270 11,847
Net assets available for plan benefits:
Beginning of year .................. 3,612 6,660 2,228 2,279 2,678 2,289
-------- -------- -------- -------- -------- --------
End of year ........................ $ 3,664 $ 7,328 $ 1,628 $ 3,264 $ 7,948 $ 14,136
======== ======== ======== ======== ======== ========
- --------------------------
The accompanying notes are an integral part of these financial statements.
Continued next page
20
PAGE 20
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1998
(Dollars in Thousands)
Fund Information
------------------------------------------------------------------------------
Franklin Franklin
Fidelity Fidelity Fidelity Balance Franklin Small
Equity Growth & Low-Priced Sheet Custody Cap
Income Income Stock Investment Growth I Growth I
-------- --------- ---------- ---------- -------- ---------
Investment income
Interest ........................... $ 2 $ 5 $ 3 $ 2 $ 1 $ 4
Dividends .......................... 455 1,125 1,017 339 37 157
Distribution of loan
interest income .................. 7 17 12 5 2 14
Net appreciation(depreciation)
in fair value of investments ..... 416 2,887 (1,067) (417) 275 (279)
-------- -------- -------- -------- -------- --------
Total investment income .......... 880 4,034 (35) (71) 315 (104)
Contributions
Conoco Inc. contributions
(net of forfeitures applied
of $5) ........................... 131 254 217 140 38 246
Participants ....................... 233 438 381 213 67 433
Rollovers .......................... 32 272 350 48 70 337
-------- -------- -------- -------- -------- --------
1,276 4,998 913 330 490 912
-------- -------- -------- -------- -------- --------
Withdrawals ........................... (253) (1,087) (348) (637) (159) (628)
Net transfers among funds
Loans .............................. (23) (69) (119) (14) (22) (20)
Loan principal payments ............ 42 108 84 25 16 71
Interfund transfers ................ (300) 10,674 1,047 (281) 69 (289)
Affiliated company
Transfers in (out), net ............ 51 (2) 21 70 (2) 82
-------- -------- -------- -------- -------- --------
(483) 9,624 685 (837) (98) (784)
-------- -------- -------- -------- -------- --------
Net increase (decrease) .............. 793 14,622 1,598 (507) 392 128
Net assets available for plan benefits:
Beginning of year .................. 7,418 7,606 10,208 6,945 1,535 10,848
-------- -------- -------- -------- -------- --------
End of year ........................ $ 8,211 $ 22,228 $ 11,806 $ 6,438 $ 1,927 $ 10,976
======== ======== ======== ======== ======== ========
- --------------------------
The accompanying notes are an integral part of these financial statements.
Continued next page
21
PAGE 21
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1998
(Dollars in Thousands)
Fund Information
-----------------------------------------------------------------------------
Hotchkis Merrill MFS
& Wiley Janus Janus Lynch MFS Total
Int'l Enterprise Mercury Growth A Research A Return A
-------- ---------- ------- -------- ---------- --------
Investment income
Interest ........................... $ 2 $ 3 $ 3 $ 1
Dividends .......................... 303 $ 144 887 168 197 $ 195
Distribution of loan
interest income .................. 7 2 10 15 3 1
Net appreciation(depreciation)
in fair value of investments ..... 115 158 1,792 (2,919) 555 (115)
-------- -------- -------- -------- -------- --------
Total investment income .......... 427 304 2,692 (2,733) 756 81
Contributions
Conoco Inc. contributions
(net of forfeitures applied
of $5) ........................... 104 19 119 207 88 17
Participants ....................... 195 36 227 404 131 26
Rollovers .......................... 16 41 32 65 1 10
-------- -------- -------- -------- -------- --------
742 400 3,070 (2,057) 976 134
-------- -------- -------- -------- -------- --------
Withdrawals ........................... (164) (9) (329) (1,435) (89) (159)
Net transfers among funds
Loans .............................. (16) (2) (8) (128) (23)
Loan principal payments ............ 37 7 56 94 23 7
Interfund transfers ................ 871 684 8,362 (2,123) 1,998 513
Affiliated company
Transfers in (out), net ............ 44 37 91
-------- -------- -------- -------- -------- --------
772 680 8,118 (3,501) 1,909 361
-------- -------- -------- -------- -------- --------
Net increase (decrease) .............. 1,514 1,080 11,188 (5,558) 2,885 495
Net assets available for plan benefits:
Beginning of year .................. 7,142 393 1,151 12,696 2,424 730
-------- -------- -------- -------- -------- --------
End of year ........................ $ 8,656 $ 1,473 $ 12,339 $ 7,138 $ 5,309 $ 1,225
======== ======== ======== ======== ======== ========
- --------------------------
The accompanying notes are an integral part of these financial statements.
Continued next page
22
PAGE 22
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1998
(Dollars in Thousands)
Fund Information
---------------------------- Total
Templeton Templeton All
Foreign Growth I Funds
----------- ----------- -----------
Investment income
Interest ........................... $ 2 $ 1 $ 131,981
Dividends .......................... 841 589 40,627
Distribution of loan
interest income .................. 7 5
Net appreciation(depreciation)
in fair value of investments ..... (1,224) (731) (17,967)
----------- ----------- -----------
Total investment income .......... (374) (136) 154,641
Contributions
Conoco Inc. contributions
(net of forfeitures applied
of $5) ........................... 127 69 25,961
Participants ....................... 207 133 37,812
Rollovers .......................... 9 123 23,773
----------- ----------- -----------
(31) 189 242,187
----------- ----------- -----------
Withdrawals ........................... (175) (106) (259,794)
Net transfers among funds
Loans .............................. (33) (26)
Loan principal payments ............ 38 42
Interfund transfers ................ 350 (91)
Affiliated company
Transfers in (out), net ............ 9 44 (2,153)
----------- ----------- -----------
189 (137) (261,947)
----------- ----------- -----------
Net increase (decrease) .............. 158 52 (19,760)
Net assets available for plan benefits:
Beginning of year .................. 7,601 4,739 3,098,750
----------- ----------- -----------
End of year ........................ $ 7,759 $ 4,791 $ 3,078,990
=========== =========== ===========
- --------------------------
The accompanying notes are an integral part of these financial statements.
23
PAGE 23
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1997
(Dollars in Thousands)
Fund Information
-----------------------------------------------------------------------------------
Barclays
3-Way DuPont Merrill
Fixed Fidelity Asset Common Lynch
Income Magellan Allocation Stock Loan Equity
Fund Fund Fund Fund Fund Index
----------- ----------- ----------- ----------- ----------- -----------
Investment income
Interest ........................... $ 141,038 $ 26 $ 12 $ 105 $ 2,997 $ 2
Dividends .......................... 10,053 13,579
Distribution of loan
interest income .................. 1,500 169 84 965 (2,997) 46
Net appreciation(depreciation)
in fair value of investments ..... 24,451 13,142 133,387 13,412
----------- ----------- ----------- ----------- ----------- -----------
Total investment income .......... 142,538 34,699 13,238 148,036 13,460
Contributions
Conoco Inc. contributions
(net of forfeitures applied
of $10) ......................... 11,099 1,824 784 7,021 564
Participants ....................... 16,256 3,129 1,263 10,976 17 1,000
Rollovers .......................... 26,449 692 150 3,994 696
----------- ----------- ----------- ----------- ----------- -----------
196,342 40,344 15,435 170,027 17 15,720
----------- ----------- ----------- ----------- ----------- -----------
Withdrawals ........................... (195,785) (7,325) (3,697) (23,203) (2,610) (1,244)
Net transfers among funds
Loans .............................. (11,221) (1,140) (479) (3,985) 17,829 (190)
Loan principal payments ............ 8,043 853 357 4,725 (15,443) 297
Interfund transfers ................ (190,792) (26,150) (11,100) 128,320 6 (72,464)
Assets transferred in (out), net ...... (2,174) (270) (85) (358) (559) (47)
Affiliated company
Transfers in (out), net ............ (266) (31) (3) (32) (29)
----------- ----------- ----------- ----------- ----------- -----------
(392,195) (34,063) (15,007) 105,467 (806) (73,648)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) .............. (195,853) 6,281 428 275,494 (789) (57,928)
Net assets available for plan benefits:
Beginning of year .................. 1,994,233 142,543 63,257 477,416 36,945 57,928
----------- ----------- ----------- ----------- ----------- -----------
End of year ........................ $ 1,798,380 $ 148,824 $ 63,685 $ 752,910 $ 36,156 $
=========== =========== =========== =========== =========== ===========
- --------------------------
The accompanying notes are an integral part of these financial statements.
Continued next page
24
PAGE 24
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1997
(Dollars in Thousands)
Fund Information
------------------------------------------------------------------------------
Merrill
Lynch Merrill
Merrill Small Lynch Merrill
Merrill Merrill Lynch Company Int'l Lynch
Lynch Lynch Basic Stock Stock Equity
Global Capital Value Fund Fund Index
Holdings Fund A Fund A Tier 2 Tier 2 Tier 6
-------- -------- -------- --------- --------- --------
Investment income
Interest ........................... $ 5 $ 6 $ 7 $ 11
Dividends .......................... 2,493 2,830 3,391
Distribution of loan
interest income .................. 34 34 53 $ 4 $ 2 61
Net appreciation(depreciation)
in fair value of investments ..... 549 3,452 6,890 164 14 8,992
-------- -------- -------- -------- -------- --------
Total investment income .......... 3,081 6,322 10,341 168 16 9,064
Contributions
Conoco Inc. contributions
(net of forfeitures applied
of $10) ......................... 453 427 618 37 20 692
Participants ....................... 801 742 1,071 65 34 1,169
Rollovers .......................... 124 289 603 106 280
-------- -------- -------- -------- -------- --------
4,459 7,780 12,633 376 70 11,205
-------- -------- -------- -------- -------- --------
Withdrawals ........................... (1,586) (2,226) (1,968) (22) (2) (1,470)
Net transfers among funds
Loans .............................. (115) (147) (200) (8) (233)
Loan principal payments ............ 160 144 263 19 8 306
Interfund transfers ................ (14,443) (4,873) 2,655 4,660 903 84,697
Assets transferred in (out), net ...... (26) (49) (13)
Affiliated company
Transfers in (out), net ............ (16) (9) (13) (42)
-------- -------- -------- -------- -------- --------
(16,026) (7,160) 737 4,636 909 83,258
-------- -------- -------- -------- -------- --------
Net increase (decrease) .............. (11,567) 620 13,370 5,012 979 94,463
Net assets available for plan benefits:
Beginning of year .................. 32,847 31,416 30,473
-------- -------- -------- -------- -------- --------
End of year ........................ $ 21,280 $ 32,036 $ 43,843 $ 5,012 $ 979 $ 94,463
======== ======== ======== ======== ======== ========
- --------------------------
The accompanying notes are an integral part of these financial statements.
Continued next page
25
PAGE 25
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1997
(Dollars in Thousands)
Fund Information
--------------------------------------------------------------------------
Conserva- Moderate Aggressive AIM
tive Asset Asset Asset Equity
Allocation Allocation Allocation Constella- AIM Fidelity
Portfolio Portfolio Portfolio tion A Value A Fund
---------- ---------- ---------- ---------- --------- ---------
Investment income
Interest ...........................
Dividends .......................... $ 148 $ 241 $ 169
Distribution of loan
interest income .................. $ 2 $ 1 1 2 1
Net appreciation(depreciation)
in fair value of investments ..... $ 173 207 67 (219) (210) (33)
------- ------- ------- ------- ------- -------
Total investment income .......... 173 209 68 (70) 33 137
Contributions
Conoco Inc. contributions
(net of forfeitures applied
of $10) ......................... 6 15 24 16 21 4
Participants ....................... 10 29 45 33 42 8
Rollovers .......................... 19 19
------- ------- ------- ------- ------- -------
189 253 137 (2) 115 149
------- ------- ------- ------- ------- -------
Withdrawals ........................... (395) (68) (72) (1) (5) (7)
Net transfers among funds
Loans .............................. (2) (5)
Loan principal payments ............ 5 4 5 11 5
Interfund transfers ................ 3,818 6,470 2,159 2,279 2,562 2,142
Assets transferred in (out), net
Affiliated company
Transfers in (out), net ............
------- ------- ------- ------- ------- -------
3,423 6,407 2,091 2,281 2,563 2,140
------- ------- ------- ------- ------- -------
Net increase (decrease) .............. 3,612 6,660 2,228 2,279 2,678 2,289
Net assets available for plan benefits:
Beginning of year ..................
------- ------- ------- ------- ------- -------
End of year ........................ $ 3,612 $ 6,660 $ 2,228 $ 2,279 $ 2,678 $ 2,289
======= ======= ======= ======= ======= =======
- --------------------------
The accompanying notes are an integral part of these financial statements.
Continued next page
26
PAGE 26
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1997
(Dollars in Thousands)
Fund Information
-------------------------------------------------------------------------------
Franklin Franklin
Fidelity Fidelity Fidelity Balance Franklin Small
Equity Growth & Low-Priced Sheet Custody Cap
Income Income Stock Investment Growth I Growth I
-------- --------- ------------- ---------- --------- ----------
Investment income
Interest ........................... $ 1 $ 1
Dividends .......................... $ 234 $ 231 543 $ 384 $ 37 451
Distribution of loan
interest income .................. 3 3 4 2 1 4
Net appreciation(depreciation)
in fair value of investments ..... 90 160 35 (104) 13 (604)
-------- -------- -------- -------- -------- --------
Total investment income .......... 327 394 583 282 51 (148)
Contributions
Conoco Inc. contributions
(net of forfeitures applied
of $10) ......................... 35 38 63 49 13 68
Participants ....................... 67 72 141 87 22 127
Rollovers .......................... 164 4 152 31 1
-------- -------- -------- -------- -------- --------
593 508 939 449 86 48
-------- -------- -------- -------- -------- --------
Withdrawals ........................... (42) (18) (49) (17) (28) (63)
Net transfers among funds
Loans .............................. (4) (11) (7) (7) (4) (15)
Loan principal payments ............ 9 12 28 40 9 23
Interfund transfers ................ 6,862 7,115 9,297 6,480 1,472 10,855
Assets transferred in (out), net
Affiliated company
Transfers in (out), net ............
-------- -------- -------- -------- -------- --------
6,825 7,098 9,269 6,496 1,449 10,800
-------- -------- -------- -------- -------- --------
Net increase (decrease) .............. 7,418 7,606 10,208 6,945 1,535 10,848
Net assets available for plan benefits:
Beginning of year ..................
-------- -------- -------- -------- -------- --------
End of year ........................ $ 7,418 $ 7,606 $ 10,208 $ 6,945 $ 1,535 $ 10,848
======== ======== ======== ======== ======== ========
- --------------------------
The accompanying notes are an integral part of these financial statements.
Continued next page
27
PAGE 27
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1997
(Dollars in Thousands)
Fund Information
------------------------------------------------------------------------------
Hotchkis Merrill MFS
& Wiley Janus Janus Lynch MFS Total
Int'l Enterprise Mercury Growth A Research A Return A
-------- ---------- --------- ---------- ---------- ----------
Investment income
Interest ........................... $ 1 $ 1
Dividends .......................... 127 $ 26 $ 120 907 $ 107 $ 56
Distribution of loan
interest income .................. 3 1 9 1
Net appreciation(depreciation)
in fair value of investments ..... (515) (1) (170) (1,205) (80) (30)
-------- -------- -------- -------- -------- --------
Total investment income .......... (384) 25 (49) (288) 28 26
Contributions
Conoco Inc. contributions
(net of forfeitures applied
of $10) ......................... 42 2 11 100 20 1
Participants ....................... 85 3 24 187 36 2
Rollovers .......................... 117 75
-------- -------- -------- -------- -------- --------
(257) 30 (14) 116 159 29
-------- -------- -------- -------- -------- --------
Withdrawals ........................... (9) (2) (132) (9) (1)
Net transfers among funds
Loans .............................. (2) (26) (22)
Loan principal payments ............ 14 1 10 35 8 1
Interfund transfers ................ 7,406 388 1,157 12,699 2,266 701
Assets transferred in (out), net
Affiliated company
Transfers in (out), net ............ (10)
-------- -------- -------- -------- -------- --------
7,399 363 1,165 12,580 2,265 701
-------- -------- -------- -------- -------- --------
Net increase (decrease) .............. 7,142 393 1,151 12,696 2,424 730
Net assets available for plan benefits:
Beginning of year ..................
-------- -------- -------- -------- -------- --------
End of year ........................ $ 7,142 $ 393 $ 1,151 $ 12,696 $ 2,424 $ 730
======== ======== ======== ======== ======== ========
- --------------------------
The accompanying notes are an integral part of these financial statements.
Continued next page
28
PAGE 28
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1997
(Dollars in Thousands)
Fund Information
----------------------------
Total
Templeton Templeton All
Foreign Growth I Funds
----------- ----------- -----------
Investment income
Interest ........................... $ 1 $ 144,214
Dividends .......................... 730 $ 665 37,522
Distribution of loan
interest income .................. 4 3
Net appreciation(depreciation)
in fair value of investments ..... (1,131) (710) 200,186
----------- ----------- -----------
Total investment income .......... (396) (42) 381,922
Contributions
Conoco Inc. contributions
(net of forfeitures applied
of $10) ......................... 56 31 24,154
Participants ....................... 96 60 37,699
Rollovers .......................... 52 52 34,069
----------- ----------- -----------
(192) 101 477,844
----------- ----------- -----------
Withdrawals ........................... (15) (49) (242,120)
Net transfers among funds
Loans .............................. (3) (3)
Loan principal payments ............ 25 23
Interfund transfers ................ 7,786 4,667
Assets transferred in (out), net ...... (3,581)
Affiliated company
Transfers in (out), net ............ (451)
----------- ----------- -----------
7,793 4,638 (246,152)
----------- ----------- -----------
Net increase (decrease) .............. 7,601 4,739 231,692
Net assets available for plan benefits:
Beginning of year .................. 2,867,058
----------- ----------- -----------
End of year ........................ $ 7,601 $ 4,739 $ 3,098,750
=========== =========== ===========
- --------------------------
The accompanying notes are an integral part of these financial statements.
29
PAGE 29
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
NOTES TO FINANCIAL STATEMENTS
(Dollars in Thousands)
NOTE 1 - DESCRIPTION OF THE THRIFT PLAN:
The following description of the Thrift Plan for Employees of Conoco
Inc. (the "Plan") provides only general information. Members should refer to the
Plan document for the Plan's provisions.
THE PLAN
The Plan is a defined contribution plan which was established in 1952
by Conoco Inc. (the "Company"), which became a wholly owned subsidiary of E. I.
du Pont de Nemours and Company (DuPont) in 1981. After the sale of the Company's
Class A Common Stock representing approximately 30% of the total Conoco shares
outstanding through an Initial Public Offering commencing on October 21, 1998,
DuPont retained 100% of the Company's Class B Common Stock representing
approximately 70% of the total shares in, and approximately 92% of the total
voting power of Conoco. The holders of Class A Common Stock and Class B Common
Stock generally have identical rights, except that the holders of Class A Common
Stock are entitled to one vote per share while holders of Class B Common Stock
are entitled to five votes per share on matters to be voted on by stockholders.
The Plan is subject to the provisions of the Employee Retirement Income Security
Act of 1974 (ERISA) and the Internal Revenue Code (the "Code").
The purpose of the Plan is to encourage employees to save
systematically a portion of their current compensation and to assist them to
accumulate additional financial means for the time of their retirement. The Plan
is a tax-qualified, contributory profit sharing plan. Employees of the Company,
including employees of Affiliated Companies that have adopted the Plan, who have
previously met the eligibility requirements of the Plan or who have completed a
designated period of 12 consecutive months during which they complete 1,000
hours or more of service; who are regular, full time employees and have
completed at least one year of continuous service, who are eligible to
participate in a qualified profit-sharing plan of an Affiliated Company from
which they were transferred, or became, prior to January 1, 1993, and remained
members of the Retirement Plan of Conoco Inc. (now the Pension and Retirement
Plan of E. I. du Pont de Nemours and Company (Title 2)); are eligible to
participate in the Plan.
An eligible Participant may authorize the Company to make a payroll
deduction under the Plan ranging from 1% to 19% of monthly compensation. The
amount deducted can be deposited into a before-tax or after-tax account or some
combination thereof. Participants' monthly deductions up to 6% are called Basic
Deposits. The Company will contribute an amount equal to 100% of the
Participant's monthly Basic Deposits. Subject to certain limitations, certain
Participants are eligible to make Supplemental Deposits, either as
30
PAGE 30
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
(Dollars in Thousands)
lump sum deposits or deposits in the form of monthly deductions in excess of 19%
of monthly compensation. Due to the discrimination rules of the Internal Revenue
Code, only "Non-highly Compensated" Participants are currently able to make lump
sum Supplemental Deposits.
A Participant with less than five years of participation credit or
service who withdraws any matched before-tax or after-tax deposits will forfeit
a portion of related Company Contributions in accordance with the specific Plan
provisions. Company Contributions will be suspended for six months if a
Participant makes an in-service withdrawal of any earnings in the before-tax or
after-tax accounts, or Basic Deposits or Company Contributions contributed
during the last 24 months. Employee deposits and matching Company Contributions
will be suspended for up to 12 months if a Participant withdraws any before-tax
contribution prior to age 59-1/2. In certain circumstances such a withdrawal may
also preclude a Participant from making any before-tax contributions in the year
following the withdrawal.
Any vested Participant who separates from service, including one who
retires, may elect to make a full account withdrawal at any time. Required
minimum distributions commence in March following the year in which a former
Participant reaches age 70-1/2.
Participants may borrow up to one-half of their nonforfeitable account
balance subject to certain minimum and maximum loan limitations. The loans are
executed by promissory notes and have a minimum term of 12 months and a maximum
term of 60 months, except for qualified residential loans that have a maximum
term of 120 months. The loans bear an interest rate equal to the average rate
charged by selected major banks to prime customers for secured loans. The loans
are repaid over the term in monthly installments of principal and interest by
payroll deduction. A Participant also has the right to repay the loan in full at
any time without penalty.
INVESTMENT FUNDS
The following investment funds have been established for the investment
of Employee Deposits and Company Contributions. Effective October 26, 1998,
Conoco Class A common stock was added as an investment option to the Plan. The
investment options offered are described below:
Fixed Income Fund
- -----------------
Investments under agreement with one or more financial institutions, including
insurance companies, banks and other investment entities, which provide for a
predetermined or stable rate of return and are held at contract value.
31
PAGE 31
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
(Dollars in Thousands)
DuPont Common Stock Fund
- ------------------------
Common Stock of E. I. du Pont de Nemours and Company.
Conoco Class A Common Stock Fund
- --------------------------------
Class A Common Stock of the Company.
Loan Fund
- ---------
Participant loans - amounts transferred from other funds that are loaned to
participants.
Merrill Lynch Funds
- -------------------
A total of seven Merrill Lynch investment options are offered, each with its own
investment objective:
Mutual Funds:
Merrill Lynch Global Holdings - seeks highest total investment return
consistent with prudent risk through global diversification.
Merrill Lynch Capital Fund - seeks highest total investment return consistent
with prudent risk.
Merrill Lynch Basic Value Fund - seeks capital appreciation and income.
Merrill Lynch Growth A - seeks growth of capital and income.
Index Funds:
Merrill Lynch Small Company Stock Index - seeks to track the holdings and total
return of the Russell 2000 Index.
Merrill Lynch International Stock Index - seeks to track the holdings and total
return of the Morgan Stanley Capital International EAFE (Europe,
Australia, and Far East) Index.
Merrill Lynch Equity Index Tier 6 - seeks to track the holdings and total
return of the Standard & Poor's 500 Composite Stock Price Index (S&P
500 Index).
32
PAGE 32
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
(Dollars in Thousands)
Mutual Funds
- ------------
In addition to the four Merrill Lynch mutual funds listed above, seventeen other
mutual funds are offered as investment options. Each of the mutual funds has its
own investment objective and varying degrees of risk. The list of mutual funds
available is:
AIM Constellation A - seeks aggressive capital growth.
AIM Value A - seeks long-term capital growth.
Fidelity Fund - seeks long-term capital growth.
Fidelity Equity-Income - seeks reasonable income and potential for capital
appreciation.
Fidelity Growth & Income - seeks high total return.
Fidelity Low-Priced Stock - seeks capital appreciation.
Fidelity Magellan Fund - seeks capital appreciation.
Franklin Balance Sheet Investment - seeks high total return.
Franklin Custody Growth I - seeks capital appreciation.
Franklin Small Cap Growth I - seeks long-term capital growth.
Hotchkis & Wiley International - seeks current income, long-term growth of
income and growth of capital.
Janus Enterprise - seeks long-term growth of capital.
Janus Mercury - seeks long-term growth of capital.
MFS Research A - seeks long-term growth of capital and future income.
MFS Total Return A - seeks above-average income consistent with prudent
employment of capital, and growth of capital and income.
Templeton Foreign I - seeks long-term growth of capital.
Templeton Growth I - seeks long-term growth of capital.
Asset Allocation Portfolios
- ---------------------------
Four asset allocation portfolios are offered as investment options for balancing
risks and return:
3-Way Asset Allocation Portfolio - seeks long-term return while controlling
risk.
Conservative Asset Allocation Portfolio - seeks lower risk with lower potential
return.
Moderate Asset Allocation Portfolio - seeks moderate risk and return.
Aggressive Asset Allocation Portfolio - seeks higher return with higher
potential risk.
33
PAGE 33
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
(Dollars in Thousands)
The Conservative, Moderate and Aggressive Asset Allocation Portfolios
are composed of other investment options which are available in the Plan. All
three asset allocation portfolios have as their components the Fixed Income
Fund, Merrill Lynch Small Company Stock Index Trust and the Merrill Lynch Equity
Index Tier 6 Trust. The Moderate and Aggressive portfolios also include the
Merrill Lynch International Stock Index. The percentage of investment in the
Fixed Fund or the other Merrill Lynch options varies depending on the risk.
Participants may allocate their Employee Deposits and Company
Contributions among all funds at their discretion and may reallocate the amounts
in their accounts among all funds at their discretion. Members may reallocate
the amounts in their accounts among all funds, except the Loan Fund, at their
discretion.
Affiliated Company transfers in(out) represent the net movement of
Participant account balances among the Plan and other defined contribution
benefit plans of Affiliated Companies.
ADMINISTRATION
The designated trustee of all the aforementioned funds is Merrill Lynch
Trust Company of America (Merrill Lynch). The administration of the Plan is
vested in the Employee Benefit Plans Board. The Board of Directors of Conoco
Inc. or its delegate may designate three or more persons to serve on the
Employee Benefit Plans Board, which has the authority to prescribe regulations
for the administration of the Plan, review all claims for benefits under the
Plan and enter into agreements with one or more entities, including, but not
limited to insurance companies, banks, and other investment organizations, to
provide a stable rate of return to the Fixed Income Fund.
Brokerage fees, transfer taxes, investment fees and other expenses
incident to the purchase and sale of securities and investments in the Fixed
Income Fund, DuPont Common Stock Fund, Conoco Class A Common Stock Fund, Merrill
Lynch Mutual and Index Funds, Asset Allocation Portfolios, and Mutual Funds
shall be included in the cost of such securities or investments, or deducted
from the sales proceeds, as the case may be. All administrative expenses not
specified in the preceding sentence shall be paid out of rebates of record
keeping costs and other discounts in connection with investment vehicles
available in the Plan. If such assets or other discounts are paid to the Plan,
any excess remaining after the reasonable administration expenses of the Plan
have been paid shall be allocated to the accounts of all Participants in the
Plan who have an Employee Account balance greater than zero on an allocation
date
34
PAGE 34
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
(Dollars in Thousands)
designated by the Plan Administrator. The balance of any administrative expenses
not paid as described above, shall be paid ratably by the Company and its
Affiliated Companies participating in the Plan.
While the Company has not expressed any intent to terminate the Plan,
it is free to do so at any time. In the event the Plan is terminated, all
Participants become vested and the distribution of all account balances will be
made based upon the valuation of the Participant's account on the termination
date.
RECEIVABLES
Receivables are comprised of Employee Deposits of $3,165 and $2,905,
Company Contributions of $2,147 and $1,997, and loan repayments of $1,163 and
$1,128, which are amounts due as of December 31, 1998 and 1997, respectively.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENT VALUATION AND INCOME RECOGNITION
The accompanying financial statements are prepared on the accrual basis
of accounting. The Plan's investments are stated at fair value, except for the
Fixed Income Fund, which is stated at contract value. The Fixed Income Fund
guaranteed investment contracts, separate account guaranteed investment
contracts and synthetic guaranteed investment contracts are fully benefit
responsive and thus, are stated at cost plus accrued interest, using the
contracted interest rates applied to the daily account balances. Mutual Funds
are valued at quoted market prices that represent the net asset value of shares
held by the Plan at year-end. Common/Collective Trust Funds are stated at the
fair value of all underlying assets as reported by the applicable custodian.
Loans to Participants, short-term investments, and cash are valued at cost that
approximates fair value. DuPont common stock and Conoco Class A Common Stock are
valued at their quoted market prices at year-end.
The purchase of shares of DuPont common stock may be made in the open
market or from DuPont if it shall have made treasury or authorized but unissued
shares available for such purchases, in which event the purchase price shall be
the closing price of such stock as reported on the New York
35
PAGE 35
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
(Dollars in Thousands)
Stock Exchange - Composite Transactions on the last day preceding the date of
such purchase from DuPont.
The purchase of shares of Conoco Class A Common Stock may be made in
the open market or from the Company if it shall have made treasury or authorized
but unissued shares available for such purchases, in which event the purchase
price shall be the closing price of such stock as reported on the New York Stock
Exchange - Composite Transactions on the last day preceding the date of such
purchase from Conoco.
Dividend income is recorded on the ex-dividend date and interest income
is recorded when earned. Realized gains and losses on the sale of the DuPont
Common Stock Fund and Conoco Class A Common Stock Fund investment securities are
based on average cost of the securities sold for each fund respectively.
Purchases and sales are recorded on a trade date basis.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires the Plan Administrator to make estimates
and assumptions that affect the reported amounts in the financial statements.
Actual results could differ from those estimates.
NOTE 3 - INVESTMENTS
The Fixed Income Fund option provided by the Plan is also available to
Participants in the Investment Plan for Salaried Employees of Consol Inc. (the
"Consol Plan"), administered by Consol Inc., a corporate joint venture owned
equally by DuPont and subsidiaries of RWE AG of Germany, and Sentinel
Transportation Company Thrift Plan (the "Sentinel Plan") administered by
Sentinel Transportation company, a wholly-owned subsidiary of Dupont.
Accordingly, the investments in these funds by Participants in the Plan and
Consol and Sentinel Plans have been commingled for investment purposes; however,
the three Plans' assets are accounted for separately by the trustee.
The Fixed Income Fund consists of guaranteed investment contracts
(GICs), separate account GICs (SAGICs), and synthetic guaranteed investment
contracts (SYNs).
The following individual contracts represent more than 5% of the net
assets available for plan benefits as of December 31, 1998 and 1997:
Deutsche Bank - 7.03%, No Maturity Date (SYN)
Metropolitan Life Insurance Co. - 7.36%, No Maturity Date (SAGIC)
Prudential Insurance Co. - 8.55%, 7/01/2001 (SAGIC)
36
PAGE 36
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
(Dollars in Thousands)
The ending balances of these contracts are listed below:
Current Value Current Value
12/31/98 12/31/97
-------------- ----------------
Deutsche Bank $ 156,806 $ 62,944
Metropolitan Life Insurance Co. 99,571 210,565
Prudential Insurance Co. 265,081 268,581
The crediting interest rates ranged from 5.78% to 9.96% and 5.74% to
9.96% for the years ended December 31, 1998 and 1997, respectively. The fund's
blended rate of return for the year was 7.47% in 1998 and 7.62% in 1997.
The crediting rates for most SAGIC and SYN contracts are reset annually
and are based on the market value of the underlying portfolio of assets backing
these contracts. Inputs used to determine the crediting rate include each
contract's portfolio market value, current yield-to-maturity, duration (i.e.,
the present value of the weighted average life), and market value relative to
contract value. All contracts have a guaranteed rate of 0% or higher.
The contract values, which approximate the fair value, of investment
contracts as of December 31, 1998 and 1997 are as follows:
Contract Value
12/31/98 12/31/98
----------- -----------
Guaranteed Investment Contracts $ 129,741 $ 337,055
Separate Account Guaranteed Investment Contracts 364,651 479,146
Synthetic Guaranteed Investment Contracts 1,202,829 962,886
----------- -----------
$ 1,697,221 $ 1,779,087
=========== ===========
The total contract values of $1,697,221 and $1,779,087 at December 31,
1998 and 1997 include direct Participant investments of $1,691,162 and
$1,772,669 and investments of $6,059 and $6,388 held by the Conservative,
Moderate and Aggressive Allocation Portfolios.
The contract values of synthetic guaranteed investment contracts
include ($45,564) and ($24,193) at December 31, 1998 and 1997 related to wrapper
contracts which guarantee the
37
PAGE 37
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
(Dollars in Thousands)
contract value of the synthetic guaranteed investment contracts for participant
initiated withdrawal events.
NOTE 4 - NET APPRECIATION (DEPRECIATION) IN FAIR VALUE OF INVESTMENTS
The Plan presents in the Statement of Changes in Net Assets Available
for Plan Benefits the net appreciation(depreciation) in the fair value of its
investments which consists of the realized gains or losses and the unrealized
appreciation (depreciation) on those investments.
NOTE 5 - INCOME TAX STATUS
The Internal Revenue Service has determined and informed the Company by
a letter dated August 7, 1995 that the Plan is qualified and the trust
established under the Plan is tax-exempt, under the appropriate sections of the
Code. The Plan has been amended since receiving the determination letter.
However, the Plan Administrator and the Plan's tax counsel believe that the Plan
is currently designed and being operated in compliance with the applicable
requirements of the Code.
NOTE 6 - RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for plan
benefits per the financial statements to the Form 5500:
December 31,
1998 1997
----------- -----------
Net assets available for plan benefits per
the financial statements $ 3,078,990 $ 3,098,750
Less: Amounts allocated to withdrawing
participants (1,193) (115)
----------- -----------
Net assets available for plan benefits per
the Form 5500: $ 3,077,797 $ 3,098,635
=========== ===========
38
PAGE 38
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
(Dollars in Thousands)
The following is a reconciliation of plan benefits paid to Participants per the
financial statements to the Form 5500:
Year Ended December 31,
1998 1997
--------- ---------
Plan benefits paid to Participants per the
financial statements $ 259,794 $ 242,120
Add: Amounts allocated to withdrawing
Participants at December 31, 1998 and 1997 1,193 115
Less: Amounts allocated to withdrawing
Participants at December 31, 1997 and 1996 (115) (1,802)
--------- ---------
Plan benefits paid to Participants per the Form 5500 $ 260,872 $ 240,433
========= =========
Amounts allocated to withdrawing Participants are recorded on the Form 5500 for
plan benefit claims that have been processed and approved for payment prior to
December 31 but not yet paid as of that date.
NOTE 7 - RELATED PARTY TRANSACTION
Certain Plan investments are shares of mutual funds managed by the
Trustee. Therefore, transactions in these investments qualify as
party-in-interest transactions that are exempt from the prohibited transaction
rules.
NOTE 8 - SUBSEQUENT EVENTS
Effective January 1, 1999 the Plan provides for immediate participation
for any regular full-time employee or any regular part-time employee.
Effective January 1, 1999, the Fixed Income Fund shall be renamed to
the Stable Value Fund. Effective April 1, 1999, the assets of the Stable Value
Fund were split due to DuPont's sale of the majority of its remaining interest
in Consol Energy Incorporated. A separate portfolio, comprised of the same
stable value investments that were held in the former Conoco/Consol/Sentinel
Stable Value Fund, was established for the Conoco Stable Value Fund.
39
PAGE 39
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
(Dollars in Thousands)
Effective January 1, 1999 a separate savings plan ("the Retail Thrift
Plan") was created for Conoco retail employees that provides for immediate
eligibility upon regular, full-time employment and a seventy five dollar
semi-annual Company contribution not dependent upon employee contributions in
addition to the 6% Company match. Retail employees eligible to participate in
the Retail Thrift Plan are not eligible to participate in the Thrift Plan and
the Thrift Plan accounts of Retail employees were transferred to the Retail
Thrift Plan effective January 14, 1999 totaling $2,474.
Effective March 1, 1999 the Conoco Employee Stock Ownership Plan
("CESOP") began transferring assets out of CESOP to other receiving plans in
order to terminate later in the year. The CESOP assets were in the form of
DuPont common stock. As a result of transfers, the Plan received 1,782,000
shares of DuPont common stock and $4,671 cash. The cash was for partial shares
of DuPont common stock and was invested as the Participants directed.
On March 22, 1999, Conoco filed a registration statement with the
Securities and Exchange Commission ("SEC") outlining a "split-off" plan to
establish Conoco as a fully independent company. The tax-free split-off will be
achieved through an exchange offer in which DuPont stockholders will be given an
opportunity to exchange DuPont common stock for shares of Conoco Class B Common
Stock currently held by DuPont. Following a review by the SEC, and depending on
market conditions, the split-off is expected to be completed third quarter of
1999. After the split-off, no purchases of DuPont Common Stock or Conoco Class A
Common Stock will be made with either fund transfers, future deposits,
contributions or income, including dividends. However, Participants will be able
to purchase Conoco Class B Common Stock.
40
PAGE 40
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
SCHEDULE I
ITEM 27A-SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1998
(Dollars in Thousands)
Description Cost Current Value
----------- ----------- -------------
Aetna Life Insurance Co. - 9.32%, 6/1/99 (GIC) ....................... $ 14,974 $ 14,974
Aetna Life Insurance Co. - 9.89%, 6/1/00 (GIC) ....................... 36,111 36,111
Metropolitan Life Insurance Co. - 7.36%, No
Maturity Date (SAGIC) ...................................... 99,571 99,571
New York Life Insurance Co. - 9.71%, 6/1/99 (GIC) ................... 15,569 15,569
New York Life Insurance Co. - 9.11%, 6/1/99 (GIC) ................... 14,782 14,782
Principal Financial Group - 9.10%, 5/31/99 (GIC) ..................... 14,303 14,303
Prudential Insurance Co. - 8.55%, 7/1/01 (SAGIC) ..................... 265,081 265,081
Travelers Insurance Co. - 9.66%, 6/1/00 (GIC) ....................... 34,001 34,001
----------- -----------
494,392 494,392
----------- -----------
Aetna Life Insurance Co. - 7.05%, No Maturity Date
(SYN), Aeltus Investment Management ......................... 125,669 132,349
Bankers Trust Co. - 5.93%, 12/01/02 (SYN),
Brundage, Story and Rose .................................... 103,988 105,295
Bankers Trust Co. - 7.68%, No Maturity Date (SYN),
Pacific Investment Management Co. ........................... 82,473 90,334
CDC Capital Inc. - 6.95%, 10/1/02 (SYN), CDC
Capital Inc. ................................................ 87,919 86,954
Citibank - 7.42%, 8/31/01 (SYN), Merrill Lynch
Institutional Fund Management ............................... 44,433 44,924
Deutsche Bank - 7.03%, No Maturity Date (SYN),
Pacific Investment Management Co. ........................... 156,806 165,266
Deutsche Bank - 6.73%, No Maturity Date (SYN),
Wellington Trust Co. ........................................ 110,853 117,388
J. P. Morgan - 6.02%, No Maturity Date (SYN),
Western Asset Management Co. ................................ 117,211 117,142
Peoples Security Life - 6.75%, No Maturity Date
(SYN), J. P. Morgan Investment Management ................... 94,125 99,184
Providian Capital Management - 7.07%, 1/1/04 (SYN)
Loomis Sayles & Co. ......................................... 140,046 142,474
Union Bank of Switzerland - 6.85%, No Maturity Date
(SYN), DuPont Pension Fund Investment ....................... 139,306 147,083
Net Wrapper Value .................................................... (45,564)
----------- -----------
1,202,829 1,202,829
----------- -----------
- ------------------------------
Continued next page
41
PAGE 41
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
SCHEDULE I
ITEM 27A-SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1998
(Continued)
(Dollars in Thousands)
Description Cost Current Value
----------- --------- -------------
Total GIC, SAGIC and SYN (a) ....................... 1,697,221 1,697,221
Less: Fixed Income Contracts held by
Asset Allocation Portfolios (b) ........... (6,059) (6,059)
---------- ----------
1,691,162 1,691,162
---------- ----------
* Conoco Class A Common Stock Fund .................................. 37,858 31,730
* DuPont Common Stock Fund .......................................... 516,372 676,304
* Aggressive Asset Allocation Portfolio (b) ......................... 1,414 1,612
* Conservative Asset Allocation Portfolio (b) ....................... 3,232 3,657
* Moderate Asset Allocation Portfolio (b) ........................... 6,603 7,308
Barclays 3-Way Asset Allocation Fund .............................. 37,666 75,582
* Merrill Lynch Small Company Stock Index Tier 2 .................... 4,503 4,434
* Merrill Lynch Equity Index Tier 6 ................................. 82,443 111,491
* Merrill Lynch International Stock Index Tier 2 .................... 2,426 2,673
Fidelity Low-Priced Stock ......................................... 12,777 11,750
Franklin Small Cap Growth I ....................................... 11,431 10,907
Janus Enterprise .................................................. 1,337 1,464
Janus Mercury ..................................................... 10,935 12,254
Hotchkis & Wiley International .................................... 8,982 8,624
MFS Total Return A ................................................ 1,324 1,217
* Merrill Lynch Global Holdings ..................................... 14,384 14,503
Templeton Growth I ................................................ 6,006 4,770
AIM Value A ....................................................... 7,229 7,906
Fidelity Growth & Income .......................................... 19,361 22,127
* Merrill Lynch Growth A ............................................ 9,825 7,094
- --------------------
* Party in interest to the Plan.
(a) GIC = Guaranteed Investment Contract; SAGIC = Separate Account
GIC; SYN = Synthetic Guaranteed Investment GIC
(b) The Conservative, Moderate and Aggressive Asset Allocation
Portfolios hold investments in Fixed Income Fund Contracts of
$2,428, $3,348 and $283, respectively, totaling $6,059.
42
PAGE 42
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
SCHEDULE I
ITEM 27A-SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1998
(Continued)
(Dollars in Thousands)
Description Cost Current Value
----------- ---------- -------------
AIM Equity Constellation A ....................... 3,001 3,240
Franklin Balance Sheet Investment ................ 6,877 6,408
Templeton Foreign I .............................. 9,741 7,725
Fidelity Magellan Fund ........................... 117,873 180,762
Fidelity Fund .................................... 12,647 14,090
Fidelity Equity-Income ........................... 7,771 8,172
Franklin Custody Growth I ........................ 1,692 1,916
MFS Research A ................................... 4,837 5,284
* Merrill Lynch Capital Fund A ..................... 24,559 27,705
* Merrill Lynch Basic Value Fund A ................. 32,519 39,493
Loan Fund (7.00% - 8.25%) ....................... 35,727 35,727
Short Term Investments and Cash .................. 33,424 33,424
---------- ----------
Total Investment Portfolio ........ $2,777,938 $3,072,515
========== ==========
- --------------------
* Party in interest to the Plan.
43
PAGE 43
THRIFT PLAN FOR EMPLOYEES
OF
CONOCO INC.
SCHEDULE II
ITEM 27D-SCHEDULE OF REPORTABLE TRANSACTIONS
DECEMBER 31, 1998
(Dollars in Thousands)
Transaction or Series of Transactions in Excess of 5% of Current Value
of Plan Assets as of January 1, 1998
Contract Current
Identity Value/ Value on
of Party Description Purchase Sales Cost of Transaction Gain on
Involved of Asset Price Price Asset Date Transaction
- -------- ----------- -------- -------- -------- ----------- -----------
DuPont Common Stock $262,254 $262,254 $262,254
DuPont Common Stock $229,540 180,388 229,540 $ 49,152
Fixed Income GIC 398,037 398,037 398,037
Fixed Income GIC 599,751 449,972 599,751 149,779
44
EXHIBIT INDEX
Exhibit
Number Description
23 Consent of Independent Accountants