1
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
(MARK ONE:)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1998
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM TO
COMMISSION FILE NUMBER: 1-4014
A. Full title of the plan and the address of the plan, if different from that
of the issuer named below:
FINA CAPITAL ACCUMULATION PLAN
(FORMERLY NAMED THRIFT PLAN OF AMERICAN PETROFINA, INCORPORATED)
(SAME ADDRESS AS SHOWN BELOW)
B. Name of issuer of the securities held pursuant to the plan and the address
of its principal executive office:
FINA, INC.
(FORMERLY NAMED AMERICAN PETROFINA, INCORPORATED)
6000 LEGACY DRIVE
PLANO, TEXAS 75024
2
Independent Auditors' Report
The Pension Committee
FINA Capital Accumulation Plan
We have audited the accompanying statement of net assets available for plan
benefits of the FINA Capital Accumulation Plan, as of December 31, 1997, and
the related statement of changes in net assets available for plan benefits for
the year then ended. These financial statements are the responsibility of the
Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the FINA
Capital Accumulation Plan as of December 31, 1997, and the change in net assets
available for plan benefits for then year the ended in conformity with generally
accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The Fund Information in the statement of net
assets available for plan benefits and the statement of changes in net assets
available for plan benefits is presented for purposes of additional analysis
rather than to present the nets assets available for plan benefits and the
changes in net assets available for plan benefits of each fund. The Fund
Information has been subjected to the auditing procedures applied in the audit
for the basic financial statements and, in our opinion, is fairly stated in all
material respects in relation to the basic financial statements taken as a
whole.
KPMG LLP
Dallas, Texas
April 17, 1998
3
INDEPENDENT AUDITOR'S REPORT
The Pension Committee
FINA Capital Accumulation Plan:
Plano, Texas:
We have audited the accompanying statement of net assets available for plan
benefits of the FINA Capital Accumulation Plan as of December 31, 1998, and the
related statement of changes in net assets available for plan benefits for the
year then ended. These financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these financial
statements based on our audit. The financial statements of the Plan for the year
ended December 31, 1997 were audited by other auditors whose report, dated April
17, 1998, expressed an unqualified opinion on those statements.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, such 1998 financial statements present fairly, in all material
respects, the net assets available for plan benefits of the Plan as of December
31, 1998, and the changes in net assets available for plan benefits for the
year then ended in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
held for investment and reportable transactions are presented for the purpose
of additional analysis and are not a required part of the basic financial
statements but are supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. The Supplemental Fund Information in
the statement of net assets available for plan benefits and the statement of
changes in net assets available for plan benefits is presented for purposes of
additional analysis rather than to present information regarding the net assets
available for plan benefits and changes in net assets available for plan
benefits of each fund, and is not a required part of the basic financial
statements. The supplemental schedules and supplemental fund information are
the responsibility of the Plan's management. Such supplemental schedules and
supplemental fund information have been subjected to the auditing procedures
applied in our audit of the basic 1998 financial statements, and, in our
opinion, are fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
/s/ DELOITTE & TOUCHE LLP
Dallas, Texas
June 21, 1999
4
FINA CAPITAL ACCUMULATION PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1998 AND 1997
(THOUSANDS OF DOLLARS)
Supplemental Fund Information
---------------------------------------------------------
FINA, Inc. PetroFina, Money
common S.A. common U.S. Debt market Balanced
Total stock stock index fund fund fund
--------- --------- --------- ---------- --------- ---------
DECEMBER 31, 1998:
Investments, at fair value:
PetroFina, S.A., American Depositary Shares
(2,917,560 shares; cost of $109,869) $ 132,019 $ -- $ 132,019 $ -- $ -- $ --
PetroFina, S.A., warrants (917,956
warrants; cost of $4,360) 6,885 -- -- -- -- --
Wells Fargo Nikko U.S. Debt Index Fund
(470,549 shares; cost of $5,831) 6,636 -- -- 6,636 -- --
American Balanced Fund, Inc. (748,276
shares; cost of $10,812) 11,793 -- -- -- -- 11,793
American New Perspective Global Equity
Mutual Fund (640,541 shares; cost of $11,742) 14,700 -- -- -- -- --
Wells Fargo Nikko Equity Index Fund (634,217
shares; cost of $14,845) 21,311 -- -- -- -- --
Brandywine Growth Fund (150,817 shares:
cost of $4,959.) 4,567 -- -- -- -- --
Money market investments 8,120 -- 2,201 -- 5,919 --
Employee loans receivable 6,951 -- -- -- -- --
Cash 34 -- -- -- -- --
Due from (to) other funds -- -- (95) -- -- --
Accrued interest receivable 39 -- 12 -- 27 --
Dividend receivable 218 -- 218 -- -- --
Miscellaneous receivables 10 -- 6 -- -- 1
--------- --------- --------- --------- --------- ---------
Plan assets 213,283 -- 134,361 6,636 5,946 11,794
Forfeitures available for future use (95) -- -- -- -- --
Fees payable (75) -- (27) (4) (3) (7)
Due to broker (149) -- (149) -- -- --
--------- --------- --------- --------- --------- ---------
Net assets available for plan benefits $ 212,964 $ -- $ 134,185 $ 6,632 $ 5,943 $ 11,787
========= ========= ========= ========= ========= =========
Supplemental Fund Information
----------------------------------------------------------------------
PetroFina
Global Equity Growth Company Employee S.A.
equity fund index fund fund forfeitures loans warrants
----------- ---------- --------- ----------- --------- ---------
DECEMBER 31, 1998:
Investments, at fair value:
PetroFina, S.A., American Depositary Shares
(2,917,560 shares; cost of $109,869) $ -- $ -- $ -- $ -- $ -- $ --
PetroFina, S.A., warrants (917,956
warrants; cost of $4,360) -- -- -- -- -- 6,885
Wells Fargo Nikko U.S. Debt Index Fund
(470,549 shares; cost of $5,831) -- -- -- -- -- --
American Balanced Fund, Inc. (748,276
shares; cost of $10,812) -- -- -- -- -- --
American New Perspective Global Equity
Mutual Fund (640,541 shares; cost of $11,742) 14,700 -- -- -- -- --
Wells Fargo Nikko Equity Index Fund (634,217
shares; cost of $14,845) -- 21,311 -- -- -- --
Brandywine Growth Fund (150,817 shares:
cost of $4,959.) -- -- 4,567 -- -- --
Money market investments -- -- -- -- -- --
Employee loans receivable -- -- -- -- 6,951 --
Cash -- -- -- -- -- 34
Due from (to) other funds -- -- -- 95 -- --
Accrued interest receivable -- -- -- -- -- --
Dividend receivable -- -- -- -- -- --
Miscellaneous receivables 1 1 -- -- -- 1
--------- --------- --------- --------- --------- ---------
Plan assets 14,701 21,312 4,567 95 6,951 6,920
Forfeitures available for future use -- -- -- (95) -- --
Fees payable (7) (10) -- -- -- (17)
Due to broker -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Net assets available for plan benefits $ 14,694 $ 21,302 $ 4,567 $ -- $ 6,951 $ 6,903
========= ========= ========= ========= ========= =========
See accompanying notes to financial statements.
5
FINA CAPITAL ACCUMULATION PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1997 AND 1996
(THOUSANDS OF DOLLARS)
Supplemental Fund Information
------------------------------------------------------
FINA, Inc. PetroFina Money
common S.A. common U.S. Debt market
Total stock stock index fund fund
--------- --------- ----------- ---------- ---------
DECEMBER 31, 1997:
Investments, at fair value:
FINA, Inc., Class A common stock (1,651,512
shares; cost of $58,309) $ 105,697 $ 105,697 $ -- $ -- $ --
PetroFina, S.A., common stock (49,142
shares; cost of $13,792) 18,138 -- 18,138 -- --
Wells Fargo Nikko U.S. Debt Index Fund
(455,782 shares; cost of $5,450) 5,917 -- -- 5,917 --
American Balanced Fund, Inc. (674,707
shares; cost of $9,348) 10,579 -- -- -- --
American New Perspective Global Equity
Mutual Fund (539,981 shares; cost of $8,984) 10,459 -- -- -- --
Wells Fargo Nikko Equity Index Fund (577,828
shares; cost of $12,345) 15,106 -- -- -- --
Brandywine Growth Fund (130,990 shares:
cost of $4,646) 4,046 -- -- -- --
Money market investments 6,324 1,113 710 -- 4,454
Employee loans receivable 6,309 -- -- -- --
Cash 1 1 -- -- --
Due from (to) other funds -- (82) -- -- --
Accrued interest receivable 27 5 1 -- 21
--------- --------- ----------- --------- ---------
Plan assets 182,603 106,734 18,849 5,917 4,475
Forfeitures available for future use (47) -- -- -- --
Fees payable (45) (33) (10) (1) --
Due to broker (676) (439) (235) -- --
--------- --------- ----------- --------- ---------
Net assets available for plan benefits $ 181,835 $ 106,262 $ 18,604 $ 5,916 $ 4,475
========= ========= =========== ========= =========
Supplemental Fund Information
-----------------------------------------------------------------
Balanced Global Equity Growth Company Employee
fund equity fund index fund fund forfeitures loans
-------- ----------- ---------- -------- ----------- --------
DECEMBER 31, 1997:
Investments, at fair value:
FINA, Inc., Class A common stock (1,651,512
shares; cost of $58,309) $ -- $ -- $ -- $ -- $ -- $ --
PetroFina, S.A., common stock (49,142
shares; cost of $13,792) -- -- -- -- -- --
Wells Fargo Nikko U.S. Debt Index Fund
(455,782 shares; cost of $5,450) -- -- -- -- -- --
American Balanced Fund, Inc. (674,707
shares; cost of $9,348) 10,579 -- -- -- -- --
American New Perspective Global Equity
Mutual Fund (539,981 shares; cost of $8,984) -- 10,459 -- -- -- --
Wells Fargo Nikko Equity Index Fund (577,828
shares; cost of $12,345) -- -- 15,106 -- -- --
Brandywine Growth Fund (130,990 shares:
cost of $4,646) -- -- -- 4,046 -- --
Money market investments -- -- -- -- 47 --
Employee loans receivable -- -- -- -- -- 6,309
Cash -- -- -- -- -- --
Due from (to) other funds -- -- -- -- -- 82
Accrued interest receivable -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Plan assets 10,579 10,459 15,106 4,046 47 6,391
Forfeitures available for future use -- -- -- -- (47) --
Fees payable -- -- (1) -- -- --
Due to broker -- -- (2) -- -- --
-------- -------- -------- -------- -------- --------
Net assets available for plan benefits $ 10,579 $ 10,459 $ 15,103 $ 4,046 $ -- $ 6,391
======== ======== ======== ======== ======== ========
Continued
6
FINA CAPITAL ACCUMULATION PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
YEARS ENDED DECEMBER 31, 1998 AND 1997
(THOUSANDS OF DOLLARS)
Supplemental Fund Information
-------------------------------------------------------------------------
FINA, Inc. PetroFina, Money
common S.A. common U.S. Debt market Balanced Global
Total stock stock index fund fund fund equity fund
-------- --------- ----------- ---------- ------ -------- -----------
YEAR ENDED DECEMBER 31, 1998:
Contributions:
Employees $ 9,457 $ 1,148 $ 1,222 $ 637 $ 514 $ 1,339 $ 1,507
Employing companies 6,758 2,802 3,956 -- -- -- --
-------- --------- -------- ------- ------ -------- -------
16,215 3,950 5,178 637 514 1,339 1,507
-------- --------- -------- ------- ------ -------- -------
Investment income:
Dividends 3,859 2,406 872 -- -- 389 151
Interest 1,403 347 169 -- 281 -- --
Net appreciation(depreciation)
in fair value of investments 34,776 1,429 21,365 520 -- 803 2,988
-------- --------- -------- ------- ------ -------- -------
40,038 4,182 22,406 520 281 1,192 3,139
-------- --------- -------- ------- ------ -------- -------
Transfers between funds -- (104,116) 95,387 (24) 2,042 (60) 912
-------- --------- -------- ------- ------ -------- -------
Withdrawals and expenses:
In cash and in kind 24,666 10,151 7,218 405 1,359 1,241 1,301
Forfeitures 48 24 23 -- -- -- --
Other deductions 410 103 149 12 10 22 22
-------- --------- -------- ------- ------ -------- -------
25,124 10,278 7,390 417 1,369 1,263 1,323
-------- --------- -------- ------- ------ -------- -------
Net increase (decrease)
in fair value of investments 31,129 (106,262) 115,581 716 1,468 1,208 4,235
Net assets available for plan benefits:
Beginning of year 181,835 106,262 18,604 5,916 4,475 10,579 10,459
-------- --------- -------- ------- ------ -------- -------
End of year $212,964 $ -- $134,185 $ 6,632 $5,943 $ 11,787 $14,694
======== ========= ======== ======= ====== ======== =======
See accompanying notes to financial statements.
FINA CAPITAL ACCUMULATION PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
YEARS ENDED DECEMBER 31, 1998 AND 1997
(THOUSANDS OF DOLLARS)
Supplemental Fund Information
------------------------------------------------
PetroFina
Equity Growth Company Employee S.A.
index fund fund forfeitures loans warrants
---------- ------- ----------- -------- ---------
YEAR ENDED DECEMBER 31, 1998:
Contributions:
Employees $ 2,261 $ 829 $ -- $ -- $ --
Employing companies -- -- -- -- --
-------- ------- --------- ------ ------
2,261 829 -- -- --
-------- ------- --------- ------ ------
Investment income:
Dividends -- 41 -- -- --
Interest -- -- -- 606 --
Net appreciation(depreciation)
in fair value of investments 4,517 (78) -- -- 3,232
-------- ------- --------- ------ ------
4,517 (37) -- 606 3,232
-------- ------- --------- ------ ------
Transfers between funds 1,331 137 -- 403 3,988
-------- ------- --------- ------ ------
Withdrawals and expenses:
In cash and in kind 1,876 402 -- 449 264
Forfeitures -- -- -- -- 1
Other deductions 34 6 -- -- 52
-------- ------- --------- ------ ------
1,910 408 -- 449 317
-------- ------- --------- ------ ------
Net increase (decrease)
in fair value of investments 6,199 521 -- 560 6,903
Net assets available for plan benefits:
Beginning of year 15,103 4,046 -- 6,391 --
-------- ------- --------- ------ ------
End of year $ 21,302 $ 4,567 $ -- $6,951 $6,903
======== ======= ========= ====== ======
See accompanying notes to financial statements.
Continued
7
Supplemental Fund Information
-----------------------------------------------------------------
FINA, Inc. PetroFina, Money
common S.A. common U.S. Debt market Balanced
Total stock stock index fund fund fund
---------- ---------- ---------- ---------- ---------- ----------
YEAR ENDED DECEMBER 31, 1997:
Contributions:
Employees $ 9,989 $ 2,790 $ 508 $ 698 $ 466 $ 1,558
Employing companies 6,337 4,936 1,401 -- -- --
---------- ---------- ---------- ---------- ---------- ----------
16,326 7,726 1,909 698 466 1,558
---------- ---------- ---------- ---------- ---------- ----------
Investment income:
Dividends 6,760 5,027 540 -- -- 397
Interest 790 73 14 -- 255 --
Net appreciation(depreciation)
in fair value of investments 33,891 25,271 2,442 523 -- 1,478
---------- ---------- ---------- ---------- ---------- ----------
41,441 30,371 2,996 523 255 1,875
---------- ---------- ---------- ---------- ---------- ----------
Transfers between funds -- (1,725) (608) (1,203) (323) (1,430)
---------- ---------- ---------- ---------- ---------- ----------
Withdrawals and expenses:
In cash and in kind 13,498 8,157 1,367 459 586 713
Forfeitures 28 22 6 -- -- --
Other deductions 301 180 33 14 8 18
---------- ---------- ---------- ---------- ---------- ----------
13,827 8,359 1,406 473 594 731
---------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease)
in fair value of investments 43,940 28,013 2,891 (455) (196) 1,272
Net assets available for plan benefits:
Beginning of year 137,895 78,249 15,713 6,371 4,671 9,307
---------- ---------- ---------- ---------- ---------- ----------
End of year $ 181,835 $ 106,262 $ 18,604 $ 5,916 $ 4,475 $ 10,579
========== ========== ========== ========== ========== ==========
Supplemental Fund Information
------------------------------------------------------------------
Global Equity Growth Company Employee
equity fund index fund fund forfeitures loans
----------- ---------- ---------- ----------- ----------
YEAR ENDED DECEMBER 31, 1997:
Contributions:
Employees $ 1,537 $ 2,071 $ 361 $ -- $ --
Employing companies -- -- -- -- --
---------- ---------- ---------- ---------- ---------
1,537 2,071 361 -- --
---------- ---------- ---------- ---------- ---------
Investment income:
Dividends 225 -- 571 -- --
Interest -- -- -- -- 448
Net appreciation(depreciation)
in fair value of investments 1,119 3,644 (586) -- --
---------- ---------- ---------- ---------- ---------
1,344 3,644 (15) -- 448
---------- ---------- ---------- ---------- ---------
Transfers between funds (899) 217 3,908 -- 2,063
---------- ---------- ---------- ---------- ---------
Withdrawals and expenses:
In cash and in kind 869 1,016 205 -- 126
Forfeitures -- -- -- -- --
Other deductions 19 26 3 -- --
---------- ---------- ---------- ---------- ---------
888 1,042 208 -- 126
---------- ---------- ---------- ---------- ---------
Net increase (decrease)
in fair value of investments 1,094 4,890 4,046 -- 2,385
Net assets available for plan benefits:
Beginning of year 9,365 10,213 -- -- 4,006
---------- ---------- ---------- ---------- ---------
End of year $ 10,459 $ 15,103 $ 4,046 $ -- $ 6,391
========== ========== ========== ========== ==========
See accompanying notes to financial statements.
8
FINA CAPITAL ACCUMULATION PLAN
FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
DECEMBER 31, 1998 AND 1997
(WITH INDEPENDENT AUDITORS' REPORT THEREON)
9
FINA CAPITAL ACCUMULATION PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
(1) GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) GENERAL
The FINA Capital Accumulation Plan (the Plan) operates for the benefit
of certain employees of FINA, Inc. (Company) and its subsidiaries and American
Petrofina Holding Company, hereafter referred to as "employing companies."
Employees who have completed one year of service are eligible to participate in
the Plan; provided, however, that no employee may become a participant if the
employee is a member of a collective bargaining unit, the recognized
representative of which has not agreed to participation in the Plan by members
of such unit. Effective January 1, 1999, an employee is eligible to participate
in the Plan immediately. The employer matching contributions will continue to be
effective only after one year of employment.
The Plan is a defined contribution plan and is subject to the
provisions of the Employee Retirement Income Security Act of 1974, as amended
(ERISA). The following description of the Plan is provided for general purposes
only. Participants should refer to the Plan document for more complete
information.
The Plan is administered by the Pension Committee appointed by and
acting on behalf of the Board of Directors of the Company. Pursuant to the
Plan's trust agreement, an independent trustee (Trustee) maintains custody of
the Plan's assets. The Boston Safe Deposit and Trust Company serves as the
independent trustee.
(b) BASIS OF PRESENTATION
The accompanying financial statements have been prepared on an accrual
basis using fair values for investments. The fair values of investments other
than employee loans are based on closing market quotations or listed redeemable
values. Employee loans are valued at cost which approximates fair value.
Security transactions are recorded on a trade date basis.
(c) COSTS RELATING TO INVESTMENT SECURITIES
Expenses relating to the purchase or sale of investment securities are
added to the cost or deducted from the proceeds, respectively.
(d) EXPENSES OF ADMINISTERING THE PLAN
All external costs and expenses incurred in administering the Plan,
including the fees and expenses of the Trustee, the fees of its Counsel and
other administrative expenses, are the responsibility of the Plan.
(e) CONTRIBUTIONS
Participants may elect to contribute up to 6% of their basic
compensation on an after-tax basis (Thrift Contribution), up to 10% on a pre-tax
basis (Deferred Compensation Contribution), or a combination of pre-tax and
after-tax contributions not exceeding 10% of their basic compensation. If a
participant elects to make a Deferred Compensation Contribution, the participant
must enter into a basic compensation reduction agreement authorizing the
employing company to make such contribution on the participant's behalf.
For each participant, an employing company will contribute an amount
equal to the lesser of the aggregate Thrift and Deferred Compensation
Contributions for the pay period or 6% pre-tax of the participant's basic
compensation for the pay period (Matching Contribution). Matching Contributions
are reduced by participants' forfeitures.
10
FINA CAPITAL ACCUMULATION PLAN
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
Thrift and Deferred Compensation Contributions are paid to the Trustee
in cash and Matching Contributions are paid to the Trustee in cash or Petrofina
S.A. American Depositary Shares ("ADS").
(f) INVESTMENT PROGRAM AND VESTING
Participants may direct the investment of their Thrift and Deferred
Compensation Contributions into a money market fund, U.S. debt index fund,
balanced fund, equity index fund, global equity fund, growth fund, or Petrofina
S.A. ADS's and the investment of the Matching Contributions into Petrofina S.A.
ADS's. Participants become vested in contributions of the employing companies
based on years of service with the employing companies as follows:
Less than 3 years 0%
3 years 60%
4 years 80%
5 years 100%
A description of rights and provisions and an explanation of the
treatment of withdrawals, forfeitures and other matters are contained in the
Plan document.
Participation in each investment option at December 31, 1998 and 1997
is presented below. The sum of participation by investment option is greater
than the total number of Plan participants making contributions because
participation is allowed in more than one investment option.
A summary of participants by investment options follows:
1998 1997
---- ----
Company Class A common stock 0 2,213
Petrofina S.A. common stock 2,273 1,093
U.S. debt index fund 602 640
Equity index fund 1,272 1,158
Balanced fund 984 975
Global equity fund 1,095 1,019
Money market fund 480 499
Brandywine fund 524 430
Warrant fund 1,577 0
On February 17, 1998, PetroFina, S.A. ("PetroFina") and the Company
entered into a definitive agreement and plan of merger pursuant to which the
Company would become an indirect, wholly-owned subsidiary of PetroFina. The
merger became effective August 5, 1998. Under the terms of the agreement,
current shareholders of the Company, other than PetroFina and its subsidiaries
received in exchange for each FINA, Inc. share they held $60 and a warrant
entitling the holder to purchase nine-tenths (0.9) of one PetroFina ADS at an
exercise price of $42.25 per ADS. Thus, each 10 warrants entitled the holder of
those warrants, upon payment of $380.25, to receive nine ADSs. The warrants were
exercisable for a period of five years from effective date of the merger and
were listed on the New York Stock Exchange.
In late 1998, Total S.A. announced plans to purchase PetroFina and the
new company will be known as Total Fina. The purchase is based on a stock swap
that provides nine (9) Total Fina shares for two (2) PetroFina shares. The
stockholders of both companies approved the transaction and approval of the
European Commission was received on March 26, 1999.
2
11
FINA CAPITAL ACCUMULATION PLAN
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
(g) LOAN OPTION
A participant may borrow from his or her Participant Deferred Account
an amount which, when added to the greater of the total outstanding balance of
all other loans to such Participant from the Plan or the highest outstanding
balance of all such loans for the one-year period ending the day before the date
of the loan, does not exceed up to one-half of the first $100,000 of such
participant's vested interest under the Plan, or the amount allowed under
Section 72(p) of the Internal Revenue Code. Any such loan made to a participant
shall be evidenced by a promissory note payable to the Trustee, shall bear a
reasonable rate of interest, shall be secured by the borrowing participant's
vested interest under the Plan and shall be repayable within five years;
provided, however, that if such loan is to be used to acquire or construct any
dwelling unit which within a reasonable time is to be used as a principal
residence of the participant, the Committee may direct the Trustee to make such
loan repayable over such period greater than five years. No withdrawal pursuant
to any of the withdrawal provisions of the Plan may be made by a participant to
whom a loan is outstanding from the Plan unless the Committee is satisfied that
such loan will remain nontaxable and fully secured by the withdrawing
participant's vested interest under the Plan following such withdrawal. At
December 31, 1998, employee loans had maturities ranging from 1999 to 2013 and
interest rates ranging from 7% to 9.5%.
(h) FORM 5500 RECONCILIATION
The net assets available for plan benefits and withdrawals reported in
the Plan's 1998 and 1997 Form 5500's are different from the corresponding
amounts reported in the accompanying financial statements by $0 and $0,
respectively, as of and for the year ended December 31, 1998 and $0 and
$1,191,981 respectively, as of and for the year ended December 31, 1997. These
differences relate to the classification of withdrawals currently payable to
participants.
(i) 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 of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of additions and deductions during the
reporting period. Actual results could differ from those estimates.
(j) DISTRIBUTIONS
Participants had requested distributions in the amount of $254,742 at
December 31, 1998 that had not yet been approved and processed by the Trustee.
(2) FEDERAL INCOME TAXES
The Plan has obtained from the Internal Revenue Service a determination
letter dated March 19, 1996 indicating that the Plan qualifies under the
provision of Sections 401(a) and 401(k) of the Internal Revenue Code and,
accordingly, is exempt from Federal income taxes under Section 501(a). The
United States Federal income tax status of the participants with respect to
their contributions to the Plan is described in information submitted to the
participants and, subject to certain limitations, such contributions are tax
deferred.
(3) PLAN TERMINATION
Although they have not expressed any intent to do so, the employing
companies have the right under the Plan to discontinue their contributions at
any time and to terminate the Plan subject to the provisions of ERISA. In the
event of Plan termination, participants will become 100% vested in their
accounts.
3
12
FINA CAPITAL ACCUMULATION PLAN
ITEM 27(a) - SCHEDULE OF ASSETS HELD FOR INVESTMENT
DECEMBER 31, 1998
SCHEDULE 1
Current
Number of Cost Value
Identity of Marketable Investment Description of Investment Shares/Units (In thousands) (In thousands)
- --------------------------------- ------------------------- ------------ -------------- --------------
PetroFina S.A. American Depositary Shares* American Depositary Shares 2,917,560 $ 109,869 $ 132,019
PetroFina S.A. warrants* Warrants 917,956 4,360 6,885
Wells Fargo Nikko U.S. Debt Index Fund * Commingled Trust Fund 470,549 5,831 6,636
American Balanced Fund, Inc. * Mutual Fund 748,276 10,812 11,793
American New Perspective Global Equity
Mutual Fund * Mutual Fund 640,541 11,742 14,700
Wells Fargo Nikko Equity Index Fund * Commingled Trust Fund 634,217 14,845 21,311
Brandywine Growth Fund * Mutual Fund 150,817 4,959 4,567
TBC, Inc. Pooled Employee Daily Liquidity Fund * Money Market Fund 8,120 8,120 8,120
Employee loans receivable * Employee loans with maturities
ranging from 1999 to 2013 and
interest rates ranging from 7%
to 9.5% 6,951 6,951
---------- ---------
$ 177,489 $ 212,982
========== =========
See accompanying independent auditors' report.
* Party-in-interest
13
FINA CAPITAL ACCUMULATION PLAN
ITEM 27(d) --- SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1998
(THOUSANDS OF DOLLARS)
SCHEDULE 2
Current Value
of Asset on
Purchase Selling Lease Expense Cost of Transaction Net
Description of Asset Price Price Rental Incurred Asset Date Gain
- -------------------- --------- ------- ------ -------- ------- -------------- ---------
PURCHASES:
FINA, Inc. Class A common stock * 1,128 - - - 1,128 1,128 -
Petrofina S.A. common stock * 42,024 - - - 42,024 42,024 -
Petrofina S.A. sponsored ADR * 55,736 - - - 55,736 55,736 -
TBC Inc. Pooled Employee Daily
Liquidity Fund * 144,355 - - - 144,355 144,355 -
TBC Inc. Pooled Employee Daily
Liquidity Fund * 205,864 - - - 205,864 205,864 -
* Party-in-interest
14
FINA CAPITAL ACCUMULATION PLAN
ITEM 27(d) --- SCHEDULE OF REPORTABLE TRANSACTIONS (CONTINUED)
Current Value
of Asset on
Purchase Selling Lease Expense Cost of Transaction Net
Description of Asset Price Price Rental Incurred Asset Date Gain
- -------------------- --------- ------- ------ -------- ------- -------------- ---------
SALES:
FINA, Inc. Class A common stock * $ -- $ 72,486 $ -- $ -- $ 39,082 $ 72,486 $ 33,404
FINA, Inc. Class A common stock * -- 100,580 -- -- 58,630 100,580 41,950
Petrofina S.A. sponsored ADR * -- 4,145 -- -- 3,927 4,145 218
TBC Inc. Pooled Employee Daily
Liquidity Fund * -- 204,034 -- -- 204,034 204,034 --
TBC Inc. Pooled Employee Daily
Liquidity Fund * -- 99,625 -- -- 99,625 99,625 --
See accompanying independent auditors' report
* Party-in-interest
15
EXHIBIT INDEX
Exhibit
Number Description
- ------ -----------
23 Consent of Independent Auditors
23.2 Consent of Independent Auditors