<PAGE>
================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1998
COMMISSION FILE NUMBER 1-815
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
CONSOL PLAZA
1800 WASHINGTON ROAD
PITTSBURGH, PENNSYLVANIA 15241
(FULL TITLE OF THE PLAN)
E. I. DU PONT DE NEMOURS AND COMPANY
1007 MARKET STREET
WILMINGTON, DELAWARE 19898
(NAME AND ADDRESS OF PRINCIPAL EXECUTIVE OFFICE OF ISSUER)
================================================================================
<PAGE>
INDEX
INVESTMENT PLAN FOR SALARIED EMPLOYEES OF CONSOL INC.
Index to Financial Statements and Additional Information
<TABLE>
<CAPTION>
Page(s)
-------
<S> <C>
Report of Independent Auditors..................................... 4
Financial Statements:
Statements of Net Assets Available for
Benefits at December 31, 1998 and 1997...................... 5
Statements of Changes in Net Assets Available
for Benefits for the Year Ended December 31,
1998 and 1997............................................... 6 - 15
Notes to Financial Statements................................. 16 - 24
Additional Information:
Schedule of Assets Held for Investment Purposes at
December 31, 1998 (Schedule I).............................. 26 - 28
Schedule of Loans in Default as of December 31, 1998
(Schedule II)............................................... 29 - 30
Schedule of Reportable Transactions for the
Year Ended December 31, 1998 (Schedule III)................. 31
Consent of Independent Auditors............................... 32
</TABLE>
2
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Investment Plan Committee has duly caused this Annual Report to be signed on
its behalf by the undersigned hereunto duly authorized.
Investment Plan for Salaried Employees
of CONSOL INC.
(Name of Plan)
Date: June 23, 1999
/s/ Karen L. Zemba
-----------------------
Karen L. Zemba
Vice President & Treasurer
CONSOL Inc.
3
<PAGE>
Report of Independent Auditors
To the Investment Plan Committee
CONSOL Inc.
We have audited the accompanying statements of net assets available for benefits
of the Investment Plan for Salaried Employees of CONSOL Inc. as of December 31,
1998 and 1997, and the related statements of changes in net assets available for
benefits for the years 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 audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan at
December 31, 1998 and 1997, and the changes in its net assets available for
benefits for the years then ended, in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental schedules
of assets held for investment purposes as of December 31, 1998, schedule of
loans in default as of December 31, 1998, and reportable transactions for the
year then ended, are presented for purposes of complying with the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974, and are not a required part of the basic
financial statements. The Fund Information in the statements of 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 benefits and the changes in net assets available
for benefits of each fund. The supplemental schedules and Fund Information have
been subjected to the auditing procedures applied in our 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.
/s/ Ernst & Young LLP
-----------------------
Ernst & Young LLP
Pittsburgh, Pennsylvania
May 19, 1999
-4-
<PAGE>
Investment Plan for Salaried Employees of CONSOL Inc.
Statements of Net Assets Available for Benefits
(Dollars in Thousands)
<TABLE>
<CAPTION>
December 31
1998 1997
--------------------------------------
<S> <C> <C>
Investment at contract value:
Stable Value Fund $ 547,742 $ 566,689
Investments at fair value:
Fidelity Magellan Fund 53,485 43,507
Barclays 3-Way Fund 24,244 19,219
E.I. DuPont de Nemours & Company Common Stock,
6,541,774 shares 348,109 369,819
Merrill Lynch Global Holdings Fund CL A 1,955 3,508
Templeton Growth Fund 648 806
Chrysler Stock - 362
Merrill Lynch Capital Fund CL A 7,219 7,980
Merrill Lynch Basic Value Fund CL A 13,239 13,056
Daimler Chrysler Common Stock 517 -
Aggressive Asset Allocation Portfolio 1,222 482
Conservative Asset Allocation Portfolio 211 811
Moderate Asset Allocation Portfolio 744 412
Fidelity Low Priced Stock Fund 2,661 3,100
Franklin Small Cap Growth Fund CL 1 2,319 2,661
Janus Enterprise Fund 503 77
Janus Mercury Fund 4,076 292
Hotchkis & Wiley International Fund 1,011 895
Merrill Lynch Small Cap Index Trust 734 1,278
Merrill Lynch International Index Trust 695 136
MFS Total Return Fund 157 46
AIM Value Fund 1,428 606
Fidelity Growth & Income Fund 6,099 1,759
Merrill Lynch Growth Fund CL A 2,679 4,546
AIM Equity Constellation Fund CL A 903 565
Franklin Balance Sheet 672 961
Templeton Foreign Fund 989 662
Fidelity Fund 2,523 412
Fidelity Equity Income Fund 1,047 585
Franklin Custodian Fund Inc. 260 299
MFS Research Fund 1,038 481
Merrill Lynch Large Company Stock Index Fund 20,574 17,547
--------------------------------------
Total investments 1,049,703 1,063,559
Participant loans receivable 21,111 22,371
Employer and employee contributions receivable 3,966 3,478
Net assets available for benefits $1,074,780 $1,089,408
======================================
</TABLE>
See accompanying notes.
-5-
<PAGE>
Investment Plan for Salaried Employees of CONSOL Inc.
Statement of Changes in Net Assets Available for Benefits, with Fund Information
Year ended December 31, 1998
(Dollars in Thousands)
<TABLE>
<CAPTION>
E.I. DuPont
Fidelity de Nemours Merrill Lynch
Stable Magellan Barclays 3- Company & Global Holdings Templeton Chryster
Value Fund Fund Way Fund Common Stock Fund CL A Growth Fund Stock
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Contributions:
Employer contributions $ 5,158 $ 590 $ 205 $ 4,530 $ 42 $ 12 $ -
Employee contributions 8,421 1,138 418 8,049 84 29 -
Rollover contributions 6,601 65 210 809 - 17 -
------------------------------------------------------------------------------------------------
Total contributions 20,180 1,793 833 13,388 126 58 -
Investment income (dividends and
interest) 40,803 2,531 4 8,317 279 84 16
Net realized and unrealized
appreciation
(depreciation) in fair value
of investments - 11,497 5,151 (39,504) 225 (103) (238)
------------------------------------------------------------------------------------------------
Total income (loss) 60,983 15,821 5,988 (17,799) 630 39 (222)
Benefits paid to participants (75,080) (1,831) (822) (15,952) (402) (4) (56)
Loan issues (4,884) (331) (195) (2,685) (51) (15) -
Loan repayments 3,949 440 166 3,621 19 5 -
Loan interest 796 77 29 779 4 1 -
Interfund transfers (5,541) (4,767) (133) 8,584 (1,704) (184) (16)
Transfers to/from the Plan 830 569 (8) 1,742 (49) - (68)
------------------------------------------------------------------------------------------------
Total deductions (79,930) (5,843) (963) (3,911) (2,183) (197) (140)
------------------------------------------------------------------------------------------------
Net additions (deductions) (18,947) 9,978 5,025 (21,710) (1,553) (158) (362)
Net assets available for
benefits at beginning of year 566,689 43,507 19,219 369,819 3,508 806 362
------------------------------------------------------------------------------------------------
Net assets available for
benefits at end of year $547,742 $ 53,485 $ 24,244 $ 348,109 $ 1,955 $ 648 $ -
================================================================================================
</TABLE>
See accompanying notes.
-6-
<PAGE>
Statement of Changes in Net Assets Available for Benefits, with Fund Information
(continued)
<TABLE>
<CAPTION>
Merrill Aggressive Conservative Moderate
Merrill Lynch Lynch Daimler Asset Asset Asset Fidelity Low
Capital Fund Basic Value Chrysler Allocation Allocation Allocation Priced Stock
CL A Fund CL A Common Stock Portfolio Portfolio Portfolio Fund
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Contributions:
Employer contributions $ 105 $ 153 $ - $ 33 $ 8 $ 17 $ 31
Employee contributions 222 305 - 70 11 46 64
Rollover contributions 37 2 - 30 - 44 32
-----------------------------------------------------------------------------------------------
Total contributions 364 460 - 133 19 107 127
Investment income (dividends
and interest) 504 1,090 - 4 1 1 239
Net realized and unrealized
appreciation (depreciation)
in fair value of investments (95) 334 468 127 42 60 (174)
-----------------------------------------------------------------------------------------------
Total income (loss) 773 1,884 468 264 62 168 192
Benefits paid to participants (390) (612) (19) (14) (11) (5) (114)
Loan issues (45) (85) - (31) - (15) (3)
Loan repayments 41 110 - 40 4 13 27
Loan interest 8 17 - 5 - 3 5
Interfund transfers (1,033) (1,237) - 476 (655) 168 (546)
Transfers to/from the Plan (115) 106 68 - - - -
-----------------------------------------------------------------------------------------------
Total deductions (1,534) (1,701) 49 476 (662) 164 (631)
-----------------------------------------------------------------------------------------------
Net additions (deductions) (761) 183 517 740 (600) 332 (439)
Net assets available for
benefits at beginning of year 7,980 13,056 - 482 811 412 3,100
-----------------------------------------------------------------------------------------------
Net assets available for
benefits at end of year $ 7,219 $13,239 $517 $1,222 $ 211 $744 $2,661
===============================================================================================
</TABLE>
See accompanying notes.
-7-
<PAGE>
Statement of Changes in Net Assets Available for Benefits, with Fund Information
(continued)
<TABLE>
<CAPTION>
Franklin Hotchkis &
Cap Small Janus Janus Wiley Merrill Lynch Merrill Lynch
Growth Fund Enterprise Mercury International Small Cap International MFS Total
CL 1 Fund Fund Fund Index Trust Index Trust Return Fund
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Contributions:
Employer contributions $ 51 $ 5 $ 27 $ 14 $ 14 $ 5 $ 1
Employee contributions 88 11 38 22 23 13 2
Rollover contributions 43 88 - - - 88 -
------------------------------------------------------------------------------------------------
Total contributions 182 104 65 36 37 106 3
Investment income (dividends
and interest) 33 50 311 42 - - 24
Net realized and unrealized
appreciation (depreciation) in
fair value of investments (52) 40 596 (52) (26) 77 (12)
------------------------------------------------------------------------------------------------
Total income (loss) 163 194 972 26 11 183 15
Benefits paid to participants (75) (1) (45) (76) (149) (17) (19)
Loan issues (8) (1) (5) - (13) (1) -
Loan repayments 32 2 29 29 15 3 -
Loan interest 7 1 6 1 3 - -
Interfund transfers (415) 215 2,820 182 (421) 386 115
Transfers to/from the Plan (46) 16 7 (46) 10 5 -
------------------------------------------------------------------------------------------------
Total deductions (505) 232 2,812 90 (555) 376 96
------------------------------------------------------------------------------------------------
Net additions (deductions) (342) 426 3,784 116 (544) 559 111
Net assets available for
benefits at beginning of year 2,661 77 292 895 1,278 136 46
------------------------------------------------------------------------------------------------
Net assets available for
benefits at end of year $2,319 $503 $4,076 $1,011 $ 734 $695 $157
================================================================================================
</TABLE>
See accompanying notes.
-8-
<PAGE>
Statement of Changes in Net Assets Available for Benefits, with Fund Information
(continued)
<TABLE>
<CAPTION>
Merrill
Fidelity Lynch AIM Equity Franklin
AIM Value Growth & Growth Fund Constellation Balance Templeton Fidelity
Fund Income Fund CL A Fund CL A Sheet Foreign Fund Fund
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Contributions:
Employer contributions $ 25 $ 52 $ 52 $ 22 $ 19 $ 14 $ 17
Employee contributions 44 131 91 46 37 23 39
Rollover contributions 27 35 - - 35 70 -
--------------------------------------------------------------------------------------------------
Total contributions 96 218 143 68 91 107 56
Investment income (dividends
and interest) 91 323 59 23 37 100 149
Net realized and unrealized
appreciation (depreciation)
in fair value of investments 187 673 (941) 105 (10) (166) 236
--------------------------------------------------------------------------------------------------
Total income (loss) 374 1,214 (739) 196 118 41 441
Benefits paid to participants (23) (197) (116) (27) (18) (28) (90)
Loan issues (3) (16) (29) (6) (10) (1) (1)
Loan repayments 16 28 25 8 6 4 12
Loan interest 3 5 6 3 2 - 3
Interfund transfers 438 3,248 (1,007) 150 (387) 295 1,746
Transfers to/from the Plan 17 58 (7) 14 - 16 -
--------------------------------------------------------------------------------------------------
Total deductions 448 3,126 (1,128) 142 (407) 286 1,670
--------------------------------------------------------------------------------------------------
Net additions (deductions) 822 4,340 (1,867) 338 (289) 327 2,111
Net assets available for
benefits at beginning of year 606 1,759 4,546 565 961 662 412
--------------------------------------------------------------------------------------------------
Net assets available for
benefits at end of year $1,428 $6,099 $ 2,679 $903 $ 672 $ 989 $2,523
==================================================================================================
</TABLE>
See accompanying notes.
-9-
<PAGE>
Statement of Changes in Net Assets Available for Benefits, with Fund Information
(continued)
<TABLE>
<CAPTION>
Merrill Lynch
Fidelity Franklin MFS Large Company Employer
Equity Custodian Research Stock Index Contribution
Income Fund Fund Inc. Fund Fund Loan Fund Receivables Totals
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Contributions:
Employer contributions $ 18 $ 6 $ 15 $ 236 $ - $ (23) $ 11,454
Employee contributions 37 5 27 445 - 69 20,048
Rollover contributions - - 63 205 - - 8,501
-----------------------------------------------------------------------------------------------
Total contributions 55 11 105 886 - 46 40,003
Investment income (dividends
and interest) 59 5 39 4 2,330 68 57,620
Net realized and unrealized
appreciation (depreciation)
in fair value of investments 45 45 106 4,707 - - (16,652)
-----------------------------------------------------------------------------------------------
Total income (loss) 159 61 250 5,597 2,330 114 80,971
Benefits paid to participants (26) (3) (28) (861) (1,574) - (98,685)
Loan issues (2) - (6) (89) 8,531 - -
Loan repayments 8 7 9 133 (8,769) (32) -
Loan interest 2 2 2 23 (1,778) (15) -
Interfund transfers 307 (106) 371 (1,770) - 421 -
Transfers to/from the Plan 14 - (41) (6) - - 3,086
-----------------------------------------------------------------------------------------------
Total deductions 303 (100) 307 (2,570) (3,590) 374 (95,599)
-----------------------------------------------------------------------------------------------
Net additions (deductions) 462 (39) 557 3,027 (1,260) 488 (14,628)
Net assets available for
benefits at beginning of year 585 299 481 17,547 22,371 3,478 1,089,408
-----------------------------------------------------------------------------------------------
Net assets available for
benefits at end of year $1,047 $ 260 $1,038 $20,574 $21,111 $3,966 $1,074,780
===============================================================================================
</TABLE>
See accompanying notes.
-10-
<PAGE>
Investment Plan for Salaried Employees of CONSOL Inc.
Statement of Changes in Net Assets Available for Benefits, with Fund Information
Year ended December 31, 1997
(Dollars in Thousands)
<TABLE>
<CAPTION>
E.I. DuPont Merrill Lynch
Stable Fidelity deNemours Merrill Lynch Global Templeton
Value Magellan Barclays Company & Common Equity Index Holdings Growth
Fund Fund 3-Way Fund Stock Trust Fund CL A Fund CL A Fund
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Contributions:
Employer contributions $ 6,186 $ 661 $ 225 $ 3,771 $ 127 $ 96 $ 3
Employee contributions 9,961 1,242 424 6,362 221 169 11
Rollover contributions 5,802 123 83 825 131 6 -
----------------------------------------------------------------------------------------------
Total contributions 21,949 2,026 732 10,958 479 271 14
Investment income (dividends
and interest) 45,463 2,956 2 6,852 1 419 113
Net realized and unrealized
appreciation (depreciation) in
fair value of investments - 6,835 3,843 65,693 2,498 41 (123)
----------------------------------------------------------------------------------------------
Total income (loss) 67,412 11,817 4,577 83,503 2,978 731 4
Benefits paid to participants (79,684) (3,425) (580) (14,623) (945) (262) (48)
Loan issues (6,582) (608) (171) (2,724) (23) (95) (6)
Loan repayments 4,660 377 137 3,119 72 37 4
Loan interest 959 87 30 667 16 9 -
Interfund transfers (71,127) (4,812) (2,240) 50,500 (13,034) (2,184) 852
Transfers to/from the Plan (101) - - 200 - - -
----------------------------------------------------------------------------------------------
Total deductions (151,875) (8,381) (2,824) 37,139 (13,914) (2,495) 802
----------------------------------------------------------------------------------------------
Net additions (deductions) (84,463) 3,436 1,753 120,642 (10,936) (1,764) 806
Net assets available for
benefits at beginning of year 651,152 40,071 17,466 249,177 10,936 5,272 -
----------------------------------------------------------------------------------------------
Net assets available for
benefits at end of year $ 566,689 $43,507 $19,219 $369,819 $ - $ 3,508 $ 806
==============================================================================================
</TABLE>
See accompanying notes.
-11-
<PAGE>
Statement of Changes in Net Assets Available for Benefits, with Fund Information
(continued)
<TABLE>
<CAPTION>
Aggressive Conservative Moderate Fidelity
Merrill Lynch Merrill Lynch Asset Asset Asset Low
Capital Fund Basic Value Chrysler Allocation Allocation Allocation Priced Stock
CL A Fund CL A Stock Portfolio Portfolio Portfolio Fund
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Contributions:
Employer contributions $ 127 $ 172 $ - $ 2 $ 1 $ 2 $ 7
Employee contributions 228 328 - 3 1 6 13
Rollover contributions 41 193 - - 9 37 -
---------------------------------------------------------------------------------------------
Total contributions 396 693 - 5 11 45 20
Investment income (dividends and
interest) 681 1,025 18 - - - 135
Net realized and unrealized
appreciation (depreciation) in
---------------------------------------------------------------------------------------------
fair value of investments 720 1,672 18 14 14 5 17
---------------------------------------------------------------------------------------------
Total income (loss) 1,797 3,390 36 19 25 50 172
Benefits paid to participants (175) (457) (26) - (43) - (70)
Loan issues (55) (46) - - (4) - (5)
Loan repayments 68 136 - 2 - 1 3
Loan interest 13 23 - - - - 1
Interfund transfers 920 4,018 (17) 461 833 361 2,999
Transfers to/from the Plan - - - - - - -
---------------------------------------------------------------------------------------------
Total deductions 771 3,674 (43) 463 786 362 2,928
---------------------------------------------------------------------------------------------
Net additions (deductions) 2,568 7,064 (7) 482 811 412 3,100
Net assets available for benefits
at beginning of year 5,412 5,992 369 - - -
---------------------------------------------------------------------------------------------
Net assets available for benefits
end of year $7,980 $13,056 $ 362 $ 482 $ 811 $412 $3,100
=============================================================================================
</TABLE>
See accompanying notes.
-12-
<PAGE>
Statement of Changes in Net Assets Available for Benefits, with Fund Information
(continued)
<TABLE>
<CAPTION>
Franklin Hotchkis & Merrill
Small Cap Janus Janus Wiley Lynch Small Merrill Lynch MFS Total
Growth Enterprise Mercury International Cap Index International Return
Fund CL 1 Fund Fund Fund Trust Trust Fund
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Contributions:
Employer contributions $ 11 $ - $ 1 $ 2 $ 4 $ 1 $ -
Employee contributions 21 1 1 3 8 2 -
Rollover contributions 19 - - - 9 - 1
------------------------------------------------------------------------------------
Total contributions 51 1 2 5 21 3 1
Investment income (dividends and interest) 109 5 31 15 - - 1
Net realized and unrealized appreciation
(depreciation) in fair value of investments (142) 6 (40) (58) 20 (4) -
------------------------------------------------------------------------------------
Total income (loss) 18 12 (7) (38) 41 (1) 2
Benefits paid to participants (85) - (2) (48) (3) (86) -
Loan issues - (5) (2) - (3) (1) -
Loan repayments 10 2 3 7 6 1 -
Loan interest 2 - 1 - 1 - -
Interfund transfers 2,716 68 299 974 1,236 223 44
Transfers to/from the Plan - - - - - - -
------------------------------------------------------------------------------------
Total deductions 2,643 65 299 933 1,237 137 44
------------------------------------------------------------------------------------
Net additions (deductions) 2,661 77 292 895 1,278 136 46
Net assets available for benefits at
beginning of year - - - - - - -
------------------------------------------------------------------------------------
Net assets available for benefits at
end of year $2,661 $ 77 $ 292 $ 895 $1,278 $ 136 $ 46
====================================================================================
</TABLE>
See accompanying notes.
-13-
<PAGE>
Statement of Changes in Net Assets Available for Benefits, with Fund Information
(continued)
<TABLE>
<CAPTION>
Fidelity Merrill
Growth & Lynch AIM Equity Franklin Templeton
AIM Value Income Growth Constellation Balance Foreign Fidelity
Fund Fund Fund CL A Fund CL A Sheet Fund Fund
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Contributions:
Employer contributions $ 2 $ 4 $ 21 $ 3 $ 6 $ 3 $ 1
Employee contributions 2 11 26 6 10 6 3
Rollover contributions - - 2 - - - -
------------------------------------------------------------------------------------
Total contributions 4 15 49 9 16 9 4
Investment income (dividends and 58 43 340 41 55 51 21
interest)
Net realized and unrealized appreciation
(depreciation) in fair value of investments (55) 60 (323) (70) (14) (81) (2)
------------------------------------------------------------------------------------
Total income (loss) 7 118 66 (20) 57 (21) 23
Benefits paid to participants (36) (104) (225) - (3) (48) -
Loan issues - - (6) - (3) - (1)
Loan repayments 4 2 13 5 1 1 1
Loan interest - - 4 - - - -
Interfund transfers 631 1,743 4,694 580 909 730 389
Transfers to/from the Plan - - - - - - -
------------------------------------------------------------------------------------
Total deductions 599 1,641 4,480 585 904 683 389
------------------------------------------------------------------------------------
Net additions (deductions) 606 1,759 4,546 565 961 662 412
Net assets available for benefit
at beginning of year - - - - - - -
------------------------------------------------------------------------------------
Net assets available for benefits at
end of year $ 606 $1,759 $4,546 $ 565 $ 961 $ 662 $ 412
====================================================================================
</TABLE>
See accompanying notes.
-14-
<PAGE>
Statement of Changes in Net Assets Available for Benefits, with Fund Information
(continued)
<TABLE>
<CAPTION>
Merrill Lynch
Fidelity Large Employer and
Equity Franklin MFS Company Employee
Income Custodian Research Stock Index Contributions
Fund Fund Inc. Fund Fund Loan Fund Receivables Totals
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Contributions:
Employer contributions $ 2 $ 2 $ 2 $ 125 $ - $ 16 $ 11,586
Employee contributions 5 1 4 225 - (7) 19,297
Rollover contributions - - - 102 - - 7,383
------------------------------------------------------------------------------------
Total contributions 7 3 6 452 - 9 38,266
Investment income (dividends and interest) 20 6 22 1 1,829 98 60,411
Net realized and unrealized appreciation
(depreciation) in fair value of investments 19 4 (13) 1,631 - - 82,185
------------------------------------------------------------------------------------
Total income (loss) 46 13 15 2,084 1,829 107 180,862
Benefits paid to participants (1) - (35) (687) (1,372) - (103,073)
Loan issues - - - (39) 10,379 - -
Loan repayments - 1 7 81 (8,793) 32 -
Loan interest - 1 - 15 (1,829) - -
Interfund transfers 540 284 494 16,093 - (177) -
Transfers to/from the Plan - - - - - - 99
------------------------------------------------------------------------------------
Total deductions 539 286 466 15,463 (1,615) (145) (102,974)
------------------------------------------------------------------------------------
Net additions (deductions) 585 299 481 17,547 214 (38) 77,888
Net assets available for benefits at
beginning of year - - - - 22,157 3,516 1,011,520
------------------------------------------------------------------------------------
Net assets available for benefits at
end of year $ 585 $ 299 $ 481 $17,547 $22,371 $ 3,478 $1,089,408
====================================================================================
</TABLE>
See accompanying notes.
-15-
<PAGE>
Investment Plan for Salaried Employees of CONSOL Inc.
Notes to Financial Statements
December 31, 1998
(Dollars in Thousands)
1. Description of the Plan
The following description of the Investment Plan for Salaried Employees of
CONSOL Inc. (the Plan) provides only general information. Participants should
refer to the plan agreement for a more complete description of the Plan's
provisions.
General
The Plan is a defined contribution plan established in 1953. Salaried,
operations and maintenance and, in certain circumstances, production and
maintenance employees of CONSOL Inc. (CONSOL) and participating employers are
eligible to participate in the Plan on the first of the month following regular
full-time employment. In addition, temporary employees are eligible to
participate in the Plan upon completion of a period of 12 consecutive months,
commencing upon their employment date or anniversary date thereof, during which
the employee completes 1,000 or more hours of service. The Plan is subject to
the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).
Contributions
Each year participants may, with certain restrictions, contribute up to 19% of
monthly base pay to the Plan exclusive of supplemental make-up deposits. CONSOL
and participating employers match these contributions, dollar for dollar, up to
6% of base pay (as defined by the Plan). Contributions may be made with before-
tax or after-tax dollars. In addition, subject to certain limitations, a
participant is allowed to make lump-sum savings deposits in cash to the Plan.
Participant Accounts
Each participant's account is credited with the participant's contributions and
allocations of the Company's contributions and plan earnings and is charged with
an allocation of administrative expenses. Allocations are based on participant
earnings or account balances, as defined. Forfeited balances of terminated
participants' nonvested accounts are used to reduce future company
contributions. The benefit to which a participant is entitled is the benefit
that can be provided from the participant's account.
-16-
<PAGE>
Investment Plan for Salaried Employees of CONSOL Inc.
Notes to Financial Statements (continued)
1. Description of the Plan (continued)
Vesting
Plan participants generally become vested upon completion of five years of
participation in the Plan or five cumulative years of service.
Participant Loans
Participants may borrow up to one-half of their nonforfeitable account balances
subject to certain minimum and maximum loan limitations. Such loans are
repayable over periods of 12 to 60 months (120 months maximum if for the
purchase of a principal residence) and bear an interest rate equal to the
average rate charged by selected major banks for secured personal loans.
Principal and interest are paid ratably through payroll deductions.
Payment of Benefits
Participants who retire from active service may elect to withdraw their entire
account in a lump-sum, to defer withdrawal until April 1 of the calendar year
following the year in which the participant attains age 70 1/2, or to elect an
option to have their account distributed over a period of not less than two
years or more than a period which would pay the account balance during the
employee's actuarial life in either a fixed or variable amount. Before-tax
deposits may be withdrawn only in the event of an employee's retirement, death,
termination, attainment of age 59 1/2 or defined hardship.
Plan Termination
Although it has not expressed any intent to do so, CONSOL has the right under
the Plan to discontinue its 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.
2. Summary of Significant Accounting Policies
Investment Valuation and Income Recognition
For financial reporting purposes, the assets of the Plan are reflected on the
accrual basis of accounting. The underlying assets of the Stable Value Fund
consist primarily of guaranteed
-17-
<PAGE>
Investment Plan for Salaried Employees of CONSOL Inc.
Notes to Financial Statements (continued)
2. Summary of Significant Accounting Policies (continued)
Investment Valuation and Income Recognition (continued)
investment contracts (GIC), separate account portfolios (SAP), and synthetic
guaranteed investment contracts (SYN) and are fully benefit responsive. The
Stable Value Fund is stated at cost plus accrued interest, using the contracted
interest rates applied to the daily account balances and is provided by the
plan's trustee. The contract value of the investment contracts approximates
market value. Investments in common stock and mutual funds are stated at fair
value based on publicly quoted market prices. Investments in the Merrill Lynch
Small Cap Index Trust Fund, Merrill Lynch International Index Trust, Merrill
Lynch Large Company Stock Index Fund, Barclays 3-Way Fund, and Aggressive Asset
Allocation, Conservative Asset Allocation and Moderate Asset Allocation
Portfolios are stated at the fair value of all underlying assets as reported by
the applicable custodian.
The unit value or price of all investments reflect the dollar amount at which
participants' accounts are valued at the end of the period reported.
Dividend income is recorded on the ex-dividend date and interest income is
recorded on the accrual basis. Gains and losses on the sale of the E.I. DuPont
de Nemours & Company Common Stock are based on average cost of the securities
sold and are recognized on the trade date. Brokerage commissions and Securities
and Exchange Commission fees in connection with the purchase and sale of E.I.
DuPont de Nemours & Company Common Stock and the sale of Daimler Chrysler Common
Stock are added to the cost thereof or deducted from the sales proceeds derived
therefrom.
Use of Estimates
The preparation of financial statements, in conformity with generally accepted
accounting principles, requires management to make estimates that affect the
amounts reported in the financial statements and accompanying notes. Actual
results could differ from those estimates.
-18-
<PAGE>
Investment Plan for Salaried Employees of CONSOL Inc.
Notes to Financial Statements (continued)
3. Investments
The Stable Value Fund is jointly owned by the Plan and the Thrift Plan for
Employees of Conoco Inc. Conoco Inc. is a wholly owned subsidiary of DuPont. The
balance of all investment contracts is allocated to the two plans by Merrill
Lynch based on the relationship of the Plan's Stable Value Fund participant
balances to total Stable Value Fund participant balances. The investment
contracts are entered into based on an evaluation of the credit risk of the
contract issuers and/or third party guarantors. Collateral is generally not
provided. The investment contracts and short-term investments of the Plan's
interest in the Stable Value Fund consist of the following:
<TABLE>
<CAPTION>
December 31
Description 1998 1997
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Peoples Security Life--6.75%, 12/31/1999 $ 29,869 $ -
CDC Investment Mgmt. Corp.--6.95%, 10/01/2002 27,900 25,966
Deutsche Bank--6.73%, 12/30/2025 35,177 32,827
Aetna Life Insurance Company--7.05%, 12/31/2025 39,879 36,947
Aetna Life Insurance Company--9.32%, 6/01/1999 4,752 12,980
Aetna Life Insurance Company--9.89%, 6/01/2000 11,459 17,299
Bankers Trust--5.93%, 12/31/1999 32,999 31,007
Metropolitan Life Ins. Co.--7.36%, 1/01/2000 31,597 66,382
New York Life Insurance Company--9.11%, 6/01/1999 4,691 12,838
New York Life Insurance Company--9.71%, 6/01/1999 4,941 13,447
Principal Mutual Life Insurance Company--9.10%, 6/01/1999 4,539 12,423
Principal Mutual Life Insurance Company--9.50%, 6/01/1998 - 6,863
Prudential Insurance Company of America--8.55%, 7/01/2001 83,448 84,672
Prudential Insurance Company of America--9.66%, 6/01/1998 - 6,954
Prudential Insurance Company of America--9.96%, 6/01/1998 - 7,132
Bankers Trust--7.68%, 12/31/2025 26,172 24,169
The Travelers Insurance Companies--9.66%, 6/01/2000 10,790 16,323
Citibank--7.42%, 8/31/2001 14,100 15,341
Union Bank of Switzerland--6.85%, 1/01/2025 44,207 41,183
J.P. Morgan--6.02%, 12/31/2002 37,195 34,959
Capital Holding Corp.--7.07%, 1/01/2004 44,442 41,314
Deutsche Bank--7.03%, 12/31/2025 49,760 19,844
----------------------------
Total investment contracts 537,917 560,870
Short-term investments (including Merrill Lynch Government Fund) 9,825 5,819
----------------------------
Total investment in Stable Value Fund $547,742 $ 566,689
============================
</TABLE>
-19-
<PAGE>
Investment Plan for Salaried Employees of CONSOL Inc.
Notes to Financial Statements (continued)
3. Investments (continued)
The aggregate crediting rates for all contracts as of December 31, 1998 and 1997
were 7.47% and 7.59%, respectively. The crediting rates for SAP 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., weighted average life), and market value relative to
contract value. The average yield of the Stable Value Fund was approximately 7%
in 1998 and 1997.
Synthetic guaranteed investment contracts are supported by wrapper contracts
which guarantee the contract value of the synthetic guaranteed investment
contracts for participant-initiated withdrawal events. The value of the wrapper
contracts is approximately $312 at December 31, 1998.
Participants investing in the Stable Value Fund, Barclays 3-Way Fund, Merrill
Lynch Large Company Stock Index Fund, Merrill Lynch Small Cap Index Trust,
Merrill Lynch International Index Trust, and Aggressive Asset Allocation,
Conservative Asset Allocation and Moderate Asset Allocation Portfolios are
assigned units at the time of investment based on the net asset value per unit.
The following tables present the number of units outstanding and related net
asset value per unit at each month-end.
-20-
<PAGE>
Investment Plan for Salaried Employees if CONSOL Inc.
Notes to Financial Statements (continued)
3. Investments (continued)
<TABLE>
<CAPTION>
Merrill Lynch Large Company
Stable Value Fund Barclays 3-Way Fund Stock Index Fund
-------------------------------------------------------------------------------------------------
Units Unit Units Unit Units Unit
Outstanding Value Outstanding Value Outstanding Value
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
January 31, 1998 5,129,410 $109.29 955,463 $20.45 266,346 $66.17
February 28, 1998 5,145,464 109.90 972,000 21.44 265,731 70.93
March 31, 1998 5,303,101 110.58 981,239 22.24 277,199 74.56
April 30, 1998 5,391,784 111.24 1,011,327 22.40 282,155 75.32
May 31, 1998 5,347,940 111.93 1,009,522 22.31 275,916 74.02
June 30, 1998 5,156,680 112.60 990,062 23.15 275,794 77.03
July 31, 1998 4,889,182 113.29 967,675 22.93 268,185 76.20
August 31, 1998 4,779,465 113.99 978,800 20.72 259,128 65.17
September 30, 1998 4,724,808 114.66 969,667 21.91 258,030 69.34
October 31, 1998 4,749,112 115.36 969,775 23.20 245,426 74.99
November 30, 1998 4,727,151 116.04 949,487 24.37 246,140 79.52
December 31, 1998 4,692,309 116.73 951,525 25.48 244,412 84.18
</TABLE>
<TABLE>
<CAPTION>
Merrill Lynch Small Cap Merrill Lynch International Aggressive Asset Allocation
Index Trust Index Trust Portfolio
-------------------------------------------------------------------------------------------------
Units Unit Units Unit Units Unit
Outstanding Value Outstanding Value Outstanding Value
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
January 31, 1998 104,701 $10.88 14,517 $ 9.87 75,313 $10.67
February 28, 1998 94,819 11.69 15,996 10.42 80,029 11.27
March 31, 1998 92,145 12.20 46,810 10.99 104,623 11.74
April 30, 1998 95,902 12.27 53,029 11.14 132,973 11.84
May 31, 1998 97,985 11.62 57,501 11.33 143,396 11.68
June 30, 1998 83,680 11.61 59,269 11.46 166,898 11.91
July 31, 1998 66,665 10.65 59,598 11.64 153,155 11.71
August 31, 1998 69,616 8.62 57,905 10.10 132,424 10.29
September 30, 1998 69,520 9.29 60,073 9.79 117,889 10.64
October 31, 1998 69,970 9.68 60,231 10.84 110,427 11.30
November 30, 1998 73,029 10.17 60,370 11.37 110,927 11.82
December 31, 1998 68,077 10.78 58,697 11.83 98,864 12.36
</TABLE>
-21-
<PAGE>
Investment Plan for Salaried Employees of CONSOL Inc.
Notes to Financial Statements (continued)
3. Investments (continued)
<TABLE>
<CAPTION>
Conservative Asset Allocation Moderate Asset Allocation
Portfolio
-----------------------------------------------------------------
Units Unit Units Unit
Outstanding Value Outstanding Value
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
January 31, 1998 49,552 $10.60 34,545 $10.60
February 28, 1998 68,756 10.87 47,501 11.00
March 31, 1998 67,394 11.08 47,868 11.31
April 30, 1998 95,184 11.16 58,061 11.39
May 31, 1998 60,409 11.10 60,859 11.28
June 30, 1998 60,637 11.24 61,488 11.42
July 31, 1998 51,442 11.17 65,026 11.25
August 31, 1998 24,331 10.69 57,110 10.41
September 30, 1998 24,500 10.92 51,797 10.66
October 31, 1998 26,684 11.17 60,658 11.06
November 30, 1998 17,881 11.42 61,394 11.40
December 31, 1998 18,027 11.69 63,290 11.76
</TABLE>
4. Income Tax Status
The Plan has received a determination letter from the Internal Revenue Service
dated November 18, 1994, stating that the Plan is qualified under Section 401(a)
of the Internal Revenue Code of 1986 (the Code) and, therefore, the related
trust is exempt from taxation under Section 501(a) of the Code. Once qualified,
the Plan is required to operate in conformity with the Code and ERISA to
maintain its tax-exempt status. The Plan was amended subsequent to the IRS
determination letter. Therefore, the amendments are not covered by the
determination letter. The administrator is not aware of any course of action or
series of events that have occurred that might adversely affect the Plan's
qualified status.
-22-
<PAGE>
Investment Plan for Salaried Employees of CONSOL Inc.
Notes to Financial Statements (continued)
5. Reconciliation of Financial Statements to Form 5500
The following is a reconciliation of net assets available for benefits per the
financial statements to the Form 5500:
<TABLE>
<CAPTION>
December 31
1998 1997
----------------------------------------
<S> <C> <C>
Net assets available for benefits per the financial
statements $1,074,780 $1,089,408
Includes amounts allocated to withdrawing participants
reported as asset reductions per the financial statements 76 119
----------------------------------------
Total assets per the Form 5500 $1,074,856 $1,089,527
========================================
</TABLE>
Amounts payable to withdrawing participants are recorded on the Form 5500 as a
liability for benefit claims that have been processed and approved for payment
prior to December 31 but not yet paid as of that date. For financial statement
purposes, the amounts were deducted from the respective assets.
6. Year 2000 (Unaudited)
The Plan Sponsor has determined that it will be necessary to take certain steps
in order to ensure that the Plan's information systems are prepared to handle
year 2000 dates. The Plan Sponsor is taking a two-phase approach. The first
phase addresses internal systems that must be modified or replaced to function
properly. Both internal and external resources have been utilized to replace or
modify existing software applications, and test the software and equipment for
the year 2000 modifications. The Plan Sponsor has substantially completed this
phase of the project. Costs associated with modifying software and equipment
were paid by the Plan Sponsor.
For the second phase of the project, plan management established formal
communications with its third party service providers to determine that they
have developed plans to address their own year 2000 problems as they relate to
the Plan's operations. All third party service providers have indicated that
they are year 2000 compliant.
-23-
<PAGE>
Investment Plan for Salaried Employees of CONSOL Inc.
Notes to Financial Statements (continued)
7. Subsequent Event
On April 29, 1999 CONSOL Energy, Inc. underwent an initial public offering. In
connection with the public offering, the Plan will offer CONSOL Energy, Inc.
common stock as an investment option. Participants of the Plan will be able to
transfer funds into the CONSOL Energy, Inc. common stock fund in June 1999 and
may elect to have contributions allocated to this fund in July 1999. In
addition, participants will no longer be able to purchase E.I. DuPont de Nemours
& Company common stock.
-24-
<PAGE>
Supplemental Schedules
-25-
<PAGE>
Schedule I
Investment Plan for Salaried Employees of CONSOL Inc.
EIN 25-1671742 Plan No. 002
Line 27a--Schedule of Assets Held for Investment Purposes
December 31, 1998
(Dollars in Thousands)
<TABLE>
<CAPTION>
Identity of Issue, Borrower Number of
Lessor or Similar Party Description of Investment Shares/Units Cost Current Value
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
E.I. DuPont de Nemours &
Company* Common Stock 6,541,774 $252,347 $348,109
=====================================
Merrill Lynch* Small Cap Index Trust 68,077 $ 733 $ 734
International Index Trust 58,697 635 695
Global Holdings Fund CL A 145,871 1,938 1,955
Capital Fund CL A 209,807 6,575 7,219
Basic Value Fund CL A 348,220 11,363 13,239
Large Company Stock Index
Fund 244,412 15,237 20,574
Growth Fund CL A 124,538 3,662 2,679
------------------------------------
$ 40,143 $ 47,095
=====================================
Capital Holding Corp. SYNGIC, 7.07%, 1/01/2004 $ 44,442 $ 44,442
Aetna Life Insurance Co. GIC, 9.32%, 6/01/1999 4,752 4,752
GIC, 9.89%, 6/01/2000 11,459 11,459
GIC, 7.05%, 12/31/2025 39,879 39,879
Bankers' Trust SYNGIC, 7.68%, 12/31/2025 26,172 26,172
SYNGIC, 5.93%, 12/31/1999 32,999 32,999
CDC Investment Mgmt. Corp. SYNGIC, 6.95%, 10/01/2002 27,900 27,900
Deutsche Bank SYNGIC, 7.03%, 12/31/2025 49,760 49,760
SYNGIC, 6.73%, 12/30/2025 35,177 35,177
Metropolitan Life Ins. Co. SAGIC, 7.36%, 1/01/2000 31,597 31,597
New York Life Ins. Co. GIC, 9.11%, 6/01/1999 4,691 4,691
New York Life Ins. Co. GIC, 9.71%, 6/01/1999 4,941 4,941
Peoples Security Life Ins. Co. GIC, 6.75%, 12/31/1999 29,869 29,869
Principal Mutual Life Ins. Co. GIC, 9.10%, 6/01/1999 4,539 4,539
Prudential Insurance Co.
of America GIC, 8.55%, 7/01/2001 83,448 83,448
The Travelers Ins. Co. GIC, 9.66%, 6/01/2000 10,790 10,790
Citibank SYNGIC, 7.42%, 8/31/2001 14,100 14,100
</TABLE>
-26-
<PAGE>
Schedule I
Line 27a--Schedule of Assets Held for Investment Purposes (continued)
<TABLE>
<CAPTION>
Identity of Issue, Borrower Number of Current
Lessor or Similar Party Description of Investment Shares/Units Cost Value
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Union Bank of Switzerland SYNGIC, 6.85%, 1/01/2025 44,207 44,207
J.P. Morgan SYNGIC, 6.02%, 12/31/2002 37,195 37,195
Short-term investments (including
Merrill Lynch Government Fund) 9,825 9,825
------------------------------
Total Stable Value Fund $547,742 $547,742
==============================
Aggressive Asset Allocation Portfolio 98,864 $ 1,074 $ 1,222
==============================
Conservative Asset Allocation Portfolio 18,027 $ 192 $ 211
==============================
Moderate Asset Allocation Portfolio 63,290 $ 678 $ 744
==============================
Fidelity Investments Fidelity Fund 68,756 $ 2,288 $ 2,523
Equity Income Fund 18,844 1,010 1,047
Magellan Fund 442,684 35,948 53,485
Low Priced Stock Fund 116,445 2,909 2,661
Growth & Income Fund 133,058 5,418 6,099
$ 47,573 $ 65,815
==============================
Daimler Chrysler Common Stock 5,379 $ 65 $ 517
==============================
BZW Global Investors Barclays 3-Way Fund 951,525 $ 12,482 $ 24,244
==============================
Franklin Value Investors Trust Small Cap Growth Fund CL 1 102,747 $ 2,423 $ 2,319
Balance Sheet 21,273 735 672
Custodian Fund Inc. 8,255 228 260
$ 3,386 $ 3,251
==============================
Franklin Templeton Growth Fund 39,588 $ 818 $ 648
Foreign Fund 117,893 1,205 989
$ 2,023 $ 1,637
==============================
Janus Investments Enterprise Fund 13,882 $ 455 $ 503
Mercury Fund 169,043 3,588 4,076
$ 4,043 $ 4,579
==============================
Hotchkis and Wiley International Fund 43,436 $ 1,053 $ 1,011
==============================
</TABLE>
-27-
<PAGE>
Schedule I
Line 27a--Schedule of Assets Held for Investment Purposes (continued)
<TABLE>
<CAPTION>
Identity of Issue, Borrower Number of
Lessor or Similar Party Description of Investment Shares/Units Cost Current Value
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MFS Investment Management Total Return Fund 10,482 $ 170 $ 157
Research Fund 41,262 952 1,038
$ 1,122 $ 1,195
==================================
AIM Value Fund 35,535 $ 1,296 $ 1,428
Equity Constellation Fund
CL A 29,593 856 903
----------------------------------
$ 2,152 $ 2,331
==================================
Participant loans 7.75%9% $ 0 $ 21,111
==================================
Total $ 916,075 $ 1,070,814
==================================
</TABLE>
*Indicates parties-in-interest.
-28-
<PAGE>
Schedule II
Investment Plan for Salaried Employees of CONSOL Inc.
EIN 25-1671742 Plan No. 002
Line 27b--Schedule of Loans in Default as of December 31, 1998
<TABLE>
<CAPTION>
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j)
Description of Loan
------------------------------
Unpaid
Original Amount Received During Balance at Loan
Identity and Amount of Reporting Year End of Loan Loan Interest Amount Overdue
------------------------ --------------------
Address of Obligor Loan Principal Interest Year Began on Payoff Rate Principal Interest
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
James Cornett $ 1,000 $ 202 $ 24 $ 197 8/12/94 8/12/99 8.50 $ 19 $ 1
HC 84 Box 1290 1,314 241 55 589 10/25/95 1/24/00 8.25 23 4
Whitesburg, KY 41858 1,325 400 61 555 12/02/96 12/02/99 8.50 38 4
3,007 474 205 2,370 7/25/97 7/25/02 8.50 45 17
Larry Crouse 3,400 - - - 10/01/92 9/30/97 8.25 - -
R.D.#5, Box 135 3,500 721 146 1,277 5/15/95 5/15/00 8.75 63 9
Cameron, WV 26033 4,000 769 204 2,132 3/14/96 3/14/01 8.00 67 14
Joseph Marchani 10,000 2,396 225 1,373 4/25/94 4/25/99 7.75 387 16
401 W. Brentwood Ave 5,000 1,087 246 2,082 7/19/95 7/19/00 8.50 176 29
Moundsville, WV 26041
Jerry Marlow 2,000 655 37 124 12/27/95 12/27/98 8.25 62 .85
306 Hootowl Hollow Lane 5,000 - - - 10/18/96 10/18/01 8.50 - -
Jellico, TN 37762 2,000 1,244 63 118 5/08/97 11/16/98 8.50 118 .83
1,100 - - - 8/11/97 2/11/99 8.50 - -
<CAPTION>
(k)
Action Taken
on Overdue
Loan Amounts
<S> <C>
James Cornett *
HC 84 Box 1290 *
Whitesburg, KY 41858 *
* * *
Larry Crouse * *
R.D.#5, Box 135 * * * *
Cameron, WV 26033 * * * *
Joseph Marchani * * * *
401 W. Brentwood Ave * * * *
Moundsville, WV 26041
Jerry Marlow * *
306 Hootowl Hollow Lane * *
Jellico, TN 37762 * *
* *
</TABLE>
-29-
<PAGE>
Schedule II
Line 27b--Schedule of Loans in Default as of December 31, 1998 (continued)
<TABLE>
<CAPTION>
(a) (b) (c) (d) (e) (f) (g) (h)
Description of Loan
--------------------------------
Unpaid
Original Amount Received During Balance at Loan
Identity and Amount of Reporting Year End of Loan Loan Interest
----------------------
Address of Obligor Loan Principal Interest Year Began on Payoff Rate
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Stanford Plaughter 3,000 131 5 666 12/04/95 12/01/97 8.25
R.R. 1, Box 263
Fairview, WV 26570
Ivan Rahn 50,000 4,013 3,426 38,109 8/02/95 2/02/05 8.50
1722 W. New Hope Rd.
Boonville, IN 47601
Stephen Scott 16,000 2,614 919 13,386 1/20/98 1/20/02 8.25
72 High Street
Cameron, WV 26033
John Terravecchia 4,812 - - - 9/14/93 9/13/95 7.75
295 Fourth Street 1,997 - - - 1/12/94 1/12/96 7.75
Brownsville, PA 15417 3,044 - - - 3/20/95 3/20/97 9.00
Albert Wolfe 12,000 2,496 165 950 2/17/94 2/17/99 7.75
Route 2, Box 232 40,000 2,656 2,799 34,459 10/30/96 10/31/06 8.50
Bland, VA 24315 3,000 490 188 2,137 2/10/97 2/10/02 8.50
<CAPTION>
(i) (j) (k)
Action Taken
Amount Overdue on Overdue
---------------------
Principal Interest Loan Amounts
- -------------------------------------------------------------
<S> <C> <C> <C>
Stanford Plaughter 269 3 *
R.R. 1, Box 263
Fairview, WV 26570
Ivan Rahn 350 270 ****
1722 W. New Hope Rd.
Boonville, IN 47601
Stephen Scott 908 270 ****
72 High Street
Cameron, WV 26033
John Terravecchia 117 - ***
295 Fourth Street 1,920 153 ***
Brownsville, PA 15417 3,044 294 ***
Albert Wolfe 239 3 **
Route 2, Box 232 255 241 **
Bland, VA 24315 47 14 **
</TABLE>
* Repayment schedules have been established whereby monies are deducted from
their biweekly or monthly compensation to fund loan payments that are in
arrears.
** For plan year 1999, loans have been reclassified as withdrawal from the
CONSOL Inc. Investment Plan.
*** No action was able to be taken on this loan because it was issued from the
Before-Tax Account and the individual is younger than age 59 1/2. The
obligor will continue to accrue unpaid interest (in addition to the loan
principal and interest that is owed) until the earlier of the following
events occur: he terminates employment and/or becomes age 59 1/2.
**** The loan payments have been made current since 12/31/98.
-30-
<PAGE>
Schedule III
Investment Plan for Salaried Employees of CONSOL Inc.
EIN 25-1671742 Plan No. 002
Line 27d--Schedule of Reportable Transactions
Year ended December 31, 1998
(Dollars in Thousands)
<TABLE>
<CAPTION>
Current Value of
Identity of Purchase Selling Cost of Asset on
Party Involved Description of Asset Price Price Asset Transaction Date
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Category 1--Individual Transactions in Excess of 5% of Plan Assets--Purchases
- -----------------------------------------------------------------------------
Deutsche Bank SYNGIC, 7.03% $ 64,737 $ - $ 64,737 $ 64,737
Category 3--Series Securities Transactions--Purchases
- -----------------------------------------------------
Deutsche Bank SYNGIC, 7.03% 638,122 - 638,122 638,122
Merrill Lynch E.I. DuPont de Nemours &
Company Common Stock 122,670 - 122,670 122,670
Merrill Lynch Stable Value Fund
money market account 69,849 - 69,849 69,849
Category 3--Series Securities Transactions--Sales
- -------------------------------------------------
Merrill Lynch E.I. DuPont de Nemours &
Company Common Stock - 101,691 75,812 101,691
Merrill Lynch Stable Value Fund
money market account - 74,658 74,658 74,658
</TABLE>
Note: All of the above transactions, except for those with the E.I. DuPont de
Nemours & Company Common Stock, represent transactions for the Conoco, Inc.
Thrift Plan and the Investment Plan for Salaried Employees of CONSOL, Inc. on a
commingled basis.
There are no reportable transactions in categories 2 and 4.
-31-
<PAGE>
EXHIBIT 23
Consent of Independent Auditors
We hereby consent to the incorporation by reference in the Prospectus
constituting part of the Registration Statement on Form S-8 (No. 33-26216) of
E.I. DuPont de Nemours and Company of our report dated May 19, 1999, with
respect to the financial statements and schedules of the Investment Plan for
Salaried Employees of CONSOL Inc. Annual Report on this Form 11-K for the year
ended December 31, 1998.
/s/ Ernst & Young LLP
------------------------
Ernst & Young LLP
Pittsburgh, Pennsylvania
June 23, 1999
-32-
