<PAGE>
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 YEARS ENDED DECEMBER 31, 1998 AND 1997
THRIFT PLAN FOR EMPLOYEES OF
SENTINEL TRANSPORTATION COMPANY
(FULL TITLE OF THE PLAN)
SENTINEL TRANSPORTATION COMPANY
3521 SILVERSIDE ROAD, CONCORD PLAZA
QUILLEN BUILDING, SECOND FLOOR, SUITE 2A
WILMINGTON, DE 19810
(NAME AND ADDRESS OF PRINCIPAL EXECUTIVE OFFICE OF ISSUER)
1
<PAGE>
INDEX
<TABLE>
<CAPTION>
Page(s)
<S> <C>
Report of Independent Accountants 4
Financial Statements:
Statement of Net Assets Available for Plan Benefits, with Fund Information at
December 31, 1998 and 1997 5 - 11
Statements of Changes in Net Assets Available for Plan Benefits, with Fund
Information for the Year Ended December 31, 1998 and 1997
12 - 16
Notes to Financial Statements 17 - 26
Supplemental Schedules*: 27
Schedule I:
Schedule of Assets Held for Investment Purposes at December 31, 1998 28
Schedule II:
Schedule of Reportable Transactions for the Year Ended December 31, 1998 29
EXHIBITS
--------
Exhibit
Number Description
------ -----------
28 Consent of the Independent Accountant 30
</TABLE>
*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.
2
<PAGE>
Pursuant to the requirements of the Securities and Exchange Act of 1934,
Sentinel Transportation Company, has duly caused this Annual Report to be signed
by the undersigned hereunto duly authorized.
Thrift Plan for the Employees of
Sentinel Transportation Company
October 13, 1999
By: /S/ Jerry C Carson
----------------------------------------------
Jerry Carson
President
3
<PAGE>
[LETTERHEAD OF SIMON MASTER & SIDLOW, P.A.]
Thrift Plan for Employees of Sentinel Transportation Company Wilmington,
Delaware 19810
We have audited the accompanying statement of net assets available for
benefits of the Thrift Plan for Employees of Sentinel Transportation Company as
of December 31, 1998 and 1997, and the related statement of changes in net
assets available for benefits for the year ended December 31, 1998 and 1997.
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 as
of December 31, 1998 and 1997, and the changes in net assets available for
benefits for the year ended December 31, 1998 and 1997, in conformity with
generally accepted accounting principles.
/s/ Simon, Master & Sidlow, P.A.
Simon, Master & Sidlow, P.A.
Wilmington, Delaware
July 9, 1999
4
<PAGE>
THRIFT PLAN FOR EMPLOYEES OF
SENTINEL TRANSPORTATION COMPANY
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
December 31, 1998
<TABLE>
<CAPTION>
Fund Information
-----------------------------------------------------------------------------------------------
Barclays
DuPont Aggressive Global Investors Merrill Lynch Merrill Lynch Merrill Lynch
Common Asset Three-Way Asset Small Cap Equity International
Stock Allocation Allocation Index Index Index
Fund Portfolio Fund Trust Trust Trust
--------------- --------------- ---------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Investments, at fair value
DuPont Company common stock $ 1,491,369
(cost $ 1,609,523)
Mutual Funds
(cost $ 514,070)
Common/Collective Trusts $ 2,115 $ 58,893 $ 448 $ 83,661 $ 1,355
(cost $116,164)
Loans to participants-
principal balance
--------------- --------------- ---------------- ------------- ------------- -------------
1,491,369 2,115 58,893 448 83,661 1,355
Investments, at contract value
Stable Value Fund
(contract value $2,172,356)
--------------- --------------- ---------------- ------------- ------------- -------------
Total investments 1,491,369 2,115 58,893 448 83,661 1,355
Receivables
Sentinel Transportation Company 18,181 30 548 - 1,299 7
Participant 24,399 50 1,017 44 2,293 29
Investment income
Other
--------------- --------------- ---------------- ------------- ------------- -------------
Net assets available for plan
benefits $ 1,533,949 (a) $ 2,195 $ 60,458 $ 492 $ 87,253 $ 1,391
=============== =============== ================ ============= ============= =============
Unit or share values $ 53.062 (b) $ 12.360 $ 25.479 $ 10.784 $ 84.177 $ 11.837
=============== =============== ================ ============= ============= =============
<CAPTION>
-----------------------------------
(c)
Stable
Value Loan
Fund Fund
--------------- ---------------
<S> <C> <C>
Investments, at fair value
DuPont Company common stock
(cost $ 1,609,523)
Mutual Funds
(cost $ 514,070)
Common/Collective Trusts
(cost $116,164)
Loans to participants-
principal balance $ 274,109
--------------- ---------------
$ - 274,109
Investments, at contract value
Stable Value Fund
(contract value $2,172,356) 2,394,387
--------------- ---------------
Total investments 2,394,387 274,109
Receivables
Sentinel Transportation Company 34,016
Participant 40,667
Investment income
Other 9,171
--------------- ---------------
Net assets available for plan
benefits $ 2,469,070 (a) $ 283,280 (a)
=============== ===============
Unit or share values $ 116.731 $ 1.000
=============== ===============
</TABLE>
(a) Represents more than 5% of the net assets available for benefits.
(b) Reflects stock split
(c) Previously known as Fixed Asset Fund
The accompanying notes are an integral part of the financial statements
5
<PAGE>
THRIFT PLAN FOR EMPLOYEES OF
SENTINEL TRANSPORTATION COMPANY
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
December 31, 1998
<TABLE>
<CAPTION>
Fund Information
----------------------------------------------------------------------------------------
Fidelity Franklin Merrill
Low- Small Hotchkis & Lynch AIM
Priced Cap Janus Janus Wiley Growth Equity
Stock Growth Enterprise Mercury International Fund Constellation
Fund Fund Fund Fund Fund Class A Fund
-------- -------- ---------- ------- ------------- -------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair value
DuPont Company common stock
(cost $1,609,523)
Mutual Funds $ 5,710 $ 12,971 $ 97 $ 19,234 $ 920 $ 6,972 $ 5,568
(cost $514,070)
Common/Collective Trusts
(cost $116,164)
Loans to participants-
principal balance
-------- -------- -------- -------- -------- -------- --------
5,710 12,971 97 19,234 920 6,972 5,568
Investments, at contract value
Stable Value Fund
(contract value $2,172,356)
-------- -------- -------- -------- -------- -------- --------
Total investments 5,710 12,971 97 19,234 920 6,972 5,568
Receivables
Sentinel Transportation Company 12 134 - 296 - 292 124
Participant 12 224 40 575 - 425 213
Investment income
Other
-------- -------- -------- -------- -------- -------- --------
Net assets available for plan
benefits $ 5,734 $ 13,329 $ 137 $ 20,105 $ 920 $ 7,689 $ 5,905
======== ======== ======== ======== ======== ======== ========
Unit or share values $ 22.850 $ 22.570 $ 36.220 $ 24.110 $ 23.280 $ 21.510 $ 30.520
======== ======== ======== ======== ======== ======== ========
<CAPTION>
-----------------------------------
Franklin
Custody Templeton Templeton
Growth Growth Foreign
Fund Fund Fund
-------- --------- ---------
<S> <C> <C> <C>
Investments, at fair value
DuPont Company common stock
(cost $1,609,523)
Mutual Funds $ 6,397 $ 40 $ 2,260
(cost $514,070)
Common/Collective Trusts
(cost $116,164)
Loans to participants-
principal balance
-------- -------- --------
6,397 40 2,260
Investments, at contract value
Stable Value Fund
(contract value $2,172,356)
-------- -------- --------
Total investments 6,397 40 2,260
Receivables
Sentinel Transportation Company 142 - 28
Participant 267 20 28
Investment income
Other
-------- -------- --------
Net assets available for plan
benefits $ 6,806 $ 60 $ 2,316
======== ======== ========
Unit or share values $ 31.450 $ 16.370 $ 8.390
======== ======== ========
</TABLE>
(a) Represents more than 5% of the net assets available for benefits.
(b) Reflects stock split
(c) Previously known as Fixed Asset Fund
The accompanying notes are an integral part of the financial statements
6
<PAGE>
THRIFT PLAN FOR EMPLOYEES OF
SENTINEL TRANSPORTATION COMPANY
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
December 31, 1998
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------
Merrill
Merrill Lynch
Lynch Basic MFS
Fidelity Fidelity MFS Capital Value Total
Magellan Fund Research Fund Fund Return
Fund PV1 Fund Class A Class A Fund
---------- --------- --------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Investments, at fair value
DuPont Company common stock
(cost $1,609,523)
Mutual Funds $279,407 $ 32,410 $ 5,160 $75,977 $49,130 $ 1,271
(cost $514,070)
Common/Collective Trusts
(cost $116,164)
Loans to participants-
principal balance
--------- -------- ------- ------- ------- -------
279,407 32,410 5,160 75,977 49,130 1,271
Investments, at contract value
Stable Value Fund
(contract value $2,172,356)
--------- -------- ------- ------- ------- -------
Total investments 279,407 32,410 5,160 75,977 49,130 1,271
Receivables
Sentinel Transportation Company 2,542 286 68 742 705 32
Participant 3,645 310 68 1,102 1,043 53
Investment income
Other
--------- -------- ------- ------- ------- -------
Net assets available for plan
benefits $285,594 (a) $ 33,006 $ 5,296 $77,821 $50,878 $ 1,356
========= ======== ======= ======= ======= =======
Unit or share values $120.820 $ 36.690 $25.150 $34.410 $38.020 $14.960
========= ======== ======= ======= ======= =======
<CAPTION>
------------------------------------------------------------------------------
Merrill
Lynch Fidelity
Global AIM Equity
Holdings, Inc. Value Income
Class A Fund Fund
-------------- --------- ---------
<S> <C> <C> <C>
Investments, at fair value
DuPont Company common stock
(cost $1,609,523)
Mutual Funds $25,094 $16,843 $ 928
(cost $514,070)
Common/Collective Trusts
(cost $116,164)
Loans to participants-
principal balance
------- ------- -------
25,094 16,843 928
Investments, at contract value
Stable Value Fund
(contract value $2,172,356)
------- ------- -------
Total investments 25,094 16,843 928
Receivables
Sentinel Transportation Company 441 259 -
Participant 681 457 -
Investment income
Other
------- ------- -------
Net assets available for plan
benefits $26,216 $17,559 $ 928
======= ======= =======
Unit or share values $13.400 $40.190 $55.550
======= ======= =======
</TABLE>
(a) Represents more than 5% of the net assets available for benefits.
(b) Reflects stock split
(c) Previously known as Fixed
Asset Fund
The accompanying notes are an integral part of the financial statements
7
<PAGE>
THRIFT PLAN FOR EMPLOYEES OF
SENTINEL TRANSPORTATION COMPANY
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
December 31, 1998
<TABLE>
<CAPTION>
Fund Information
-------------------------------------------
Pending
Fidelity Settlement
Growth & Funds
Income & Total
Fund Accrued All
Class A Income Funds
------------ ------------ -------------
<S> <C> <C> <C>
Investments, at fair value
DuPont Company common stock $ 1,491,369
(cost $1,609,523)
Mutual Funds $ 43,576 589,965
(cost $514,070)
Common/Collective Trusts 146,472
(cost $116,164)
Loans to participants- 274,109
principal balance
------------ ------------ -------------
43,576 $ - 2,501,915
Investments, at contract value
Stable Value Fund 2,394,387
(contract value $2,172,356)
------------ ------------ -------------
Total investments 43,576 - 4,896,302
Receivables
Sentinel Transportation Company 267 60,451
Participant 318 77,980
Investment income 3,309 3,309
Other 9,171
------------ ------------ -------------
Net assets available for plan
benefits $ 44,161 $ 3,309 $ 5,047,213
============ ============ =============
Unit or share values $ 45.840
============
</TABLE>
(a) Represents more than 5% of
the net assets available for
benefits.
(b) Reflects stock split
(c) Previously known as Fixed
Asset Fund
The accompanying notes are an integral part of the financial statements
8
<PAGE>
THRIFT PLAN FOR EMPLOYEES OF
SENTINEL TRANSPORTATION COMPANY
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
December 31, 1997
<TABLE>
<CAPTION>
Fund Information
---------------------------------------------------------------------------------------------------
Merrill
Dupont Aggressive Fidelity Lynch
Common Asset Fixed Low Growth
Stock Allocation Barclays Income Loan Priced Fund
Fund Portfolio 3-Way Fund Fund Stock Class A
----------- -------------- ------------- ---------- ----------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair value
(notes 1,2 and 3)
DuPont Company common stock $1,102,448
(cost $ 994,434)
Mutual Funds $ 1,119 $ 1,713
(cost $ 300,096)
Common/Collective Trusts $ 210 $ 56,063
(cost $47,551)
Loans to participants-
principal balance $ 148,136
---------- ------------ --------------- ---------- ---------- ------------- -----------
1,102,448 210 $ 56,063 $ - 148,136 1,119 1,713
Investments, at contract value
Fixed income fund 1,680,065
(contract value $1,594,160)
Pending Settlement Fund
(cost $ 3,214)
---------- ------------ --------------- ---------- ---------- ------------- -----------
Total investments 1,102,448 210 56,063 1,680,065 148,136 1,119 1,713
Receivables
Sentinel Transportation
Company 17,091 26 652 34,693 52 183
Participant 23,305 44 1,031 38,968 166 361
Investment income
Other 4,192
---------- ------------ --------------- ---------- ---------- ------------- -----------
Net assets available for
plan benefits $1,142,844 (a) $ 280 $ 57,746 $1,753,726 (a) $ 152,328 $ 1,337 $ 2,257
========== ============ =============== ========== ========== ============= ===========
Unit or share values (note 2) $ 60.062 (b) $ 10.550 $ 20.140 $ 108.613 $ 25.130 $ 28.650
========== ============ =============== ========== ============= ===========
<CAPTION>
-------------------------------------------------------------------------------------------------
Merrill
AIM Lynch
Equity Franklin Templeton Fidelity Fidel MFS Capital
Constellation Balance Foreign Magellan Fund Research Fund
Fund Sheet Fund Fund PV1 Fund Class A
-------------- ------------- ----------- ------------ --------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair value
(notes 1,2 and 3)
DuPont Company common stock
(cost $ 994,434)
Mutual Funds $ 75 $ 183 $ 806 $ 168,191 $ 187 $ 961 $ 51,891
(cost $ 300,096)
Common/Collective Trusts
(cost $47,551)
Loans to participants- ------------- ------------- --------- ----------- --------- --------- -----------
principal balance 75 183 806 168,191 187 961 51,891
Investments, at contract value
Fixed income fund
(contract value $1,594,160)
Pending Settlement Fund
(cost $ 3,214) ------------- ------------- --------- ----------- --------- --------- ------------
Total investments 75 183 806 168,191 187 961 51,891
Receivables
Sentinel Transportation
Company 79 40 26 2,648 40 55 775
Participant 174 40 26 3,919 40 74 1,164
Investment income
Other
----------- ------------- --------- --------- -------- -------- ----------
Net assets available for
plan benefits $ 328 $ 263 $ 858 $ 174,758 $ 267 $ 1,090 $ 53,830
=========== ============= ========= ========= ======== ======== ==========
Unit or share values (note 2) $ 26.380 $ 33.540 $ 9.950 $ 95.270 $ 29.810 $ 21.290 $ 34.510
=========== ============= ========= ========= ======== ======== ==========
</TABLE>
(a) Represents more than 5% of the net assets available for benefits.
The accompanying notes are an integral part of the financial statements
9
<PAGE>
THRIFT PLAN FOR EMPLOYEES OF
SENTINEL TRANSPORTATION COMPANY
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
December 31, 1997
<TABLE>
<CAPTION>
Fund Information
------------------------------------------------------------------------------------------------
Merrill Franklin Pending
Lynch Small Merrill Merrill Fidelity Settlement
Basic Capital Lynch MFS Lynch Growth & Funds
Value Growth Equity Total Global AIM Income & Total
Fund Fund Index TR Return Holdings Value Fund Accrued All
Class A Class I Tier 6 Fund Class A Fund Class A Income Funds
--------- --------- --------- -------- --------- ------- --------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair value
(notes 1, 2 and 3) $ 1,102,448
DuPont Company common stock
(cost $ 994,434) $ 29,550 $ 12,615 $ 35,439 $ 348 $ 16,935 $ 76 $ 1,131 321,220
Mutual Funds
(cost $ 300,096) 56,273
Common/Collective Trusts
(cost $47,551) 148,136
Loans to participants-
principal balance
--------- --------- --------- -------- --------- ------- --------- ---------- ------------
29,550 12,615 35,439 348 16,935 76 1,131 $ - 1,628,077
Investments, at contract value 1,680,065
Fixed income fund
(contract value $1,594,160) 3,214 3,214
Pending Settlement Fund
(cost $ 3,214)
--------- --------- --------- -------- --------- ------ --------- ---------- ------------
29,550 12,615 35,439 348 16,935 76 1,131 3,214 3,311,356
Total investments
Receivables 534 113 853 32 403 79 52 58,426
Sentinel Transportation Company 812 267 1,272 37 649 174 164 72,687
Participant 2,782 2,782
Investment income 4,192
Other
--------- --------- --------- -------- --------- ------- --------- ---------- ------------
Net assets available for plan
benefits $ 30,896 $ 12,995 $ 37,564 $ 417 $ 17,987 $ 329 $ 1,347 $ 5,996 $ 3,449,443
========= ========= ========= ======== ========= ======= ========= ========== ============
$ 37.080 $ 22.930 $ 65.441 $ 15.820 $ 13.190 $32.420 $ 38.100
========= ========= ========= ======== ========= ======= =========
</TABLE>
Unit or share values (note 2)
(a) Represents more than 5% of the net assets available for benefits.
(b) Reflects stock split which occurred on June 12, 1997.
The accompanying notes are an integral part of the financial statements
10
<PAGE>
THRIFT PLAN FOR EMPLOYEES OF
SENTINEL TRANSPORTATION COMPANY
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
For The Year Ended December 31, 1997
<TABLE>
<CAPTION>
Fund Information
-------------------------------------------------------------------------------------------
Barclays Merrill
DuPont Aggressive Global Investors Merrill Lynch Lynch Merrill Lynch
Common Asset Three-Way Asset Small Cap Equity International
Stock Allocation Allocation Index Index TR Index
Fund Portfolio Fund Trust Tier 6 Trust
---------- ---------- --------------- ------------ ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Investment income
Interest
Dividends $ 28,746
Distributions of loan
interest income 4,783 $ 79 $ 665
Net realized gains (losses) 28,704 2,750 2,239 $ (17)
Net unrealized appreciation
(depreciation) in fair value
of investments (228,752) $ 149 10,544 $ 27 12,823 69
------------ ---------- ------------- ----------- --------- -----------
Total investment income
(losses) (166,519) 149 13,373 27 15,727 52
Contributions
Sentinel Transportation
Company's contributions 203,666 319 7,720 13,186 147
Participants' 376,540 1,447 15,297 465 20,638 1,358
------------ ---------- ------------- ----------- --------- -----------
580,206 1,766 23,017 465 33,824 1,505
Withdrawals (85,503) (12,461) (4,102)
Net transfers among funds
Loans (83,729) (1,831) (1,803)
Loan principal repayments 19,313 543 882
Interfund transfers 127,337 (19,929) 5,161 (166)
------------ ---------- ------------- ----------- --------- -----------
(22,582) - (33,678) - 138 (166)
------------ ---------- ------------- ----------- --------- -----------
Net increase (decrease) 391,105 1,915 2,712 492 49,689 1,391
Net assets available for plan
benefits:
Beginning of year 1,142,844 280 57,746 - 37,564 -
------------ ---------- ------------- ----------- --------- -----------
End of year $ 1,533,949 $ 2,195 $ 60,458 $ 492 $ 87,253 1,391
============ ========== ============= =========== ========= ===========
<CAPTION>
--------------------------
(c)
Stable
Value Loan
Fund Fund
----------- ----------
<S> <C> <C>
Investment income
Interest
Dividends
Distributions of loan
interest income $ 8,243
Net realized gains (losses) $ 25,871
Net unrealized appreciation
(depreciation) in fair value
of investments 127,310
----------- ----------
Total investment income 161,424 $ -
(losses)
Contributions
Sentinel Transportation
Company's contributions 423,751
Participants' 621,491 4,979
----------- ----------
1,045,242 4,979
Withdrawals (266,498) (24,999)
Net transfers among funds (113,507) 213,479
Loans
Loan principal repayments 34,331 (62,993)
Interfund transfers (145,648) 486
----------- ----------
(491,322 125,973
----------- ----------
Net increase (decrease) 715,344 130,952
Net assets available for plan
benefits:
Beginning of year 1,753,726 152,328
----------- ----------
End of year 2,469,070 $ 283,280
=========== ==========
</TABLE>
(c) Previously known as Fixed
Asset Fund
The accompanying notes are an integral part of the financial statements
11
<PAGE>
THRIFT PLAN FOR EMPLOYEES OF
SENTINEL TRANSPORTATION COMPANY
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
For The Year Ended December 31, 1997
<TABLE>
<CAPTION>
Fund Information
-------------------------------------------------------------------
Franklin
Fidelity Small
Low- Capital Hotchkis &
Priced Growth Janus Janus Wiley
Stock Fund Enterprise Mercury International
Fund Class I Fund Fund Fund
-------- -------- ---------- ------- -------------
<S> <C> <C> <C> <C> <C>
Investment income
Interest
Dividends $ 394 $ 185 $ 10 $ 1,481 $ 22
Distributions of loan
interest income 39 112
Net realized gains (losses) (565) (23) (166)
Net unrealized appreciation
(depreciation in fair value
of investments (502) (107) 6 2,453 (18)
-------- -------- ---------- ------- -------------
Total investments income (losses) (108) (448) (7) 3,880 4
Contributions
Sentinel Transportation
Company's contributions 546 2,142 1,734
Participants' 2,497 4,309 322 3,063 916
-------- -------- ---------- ------- -------------
3,043 6,451 322 4,797 916
Withdrawals (330)
Net transfers among funds
Loans (36)
Loan principal payments 171 281
Interfund transfer 1,462 (5,804) (178) 11,477
-------- -------- ---------- ------- -------------
1,462 (5,669) (178) 11,428 -
-------- -------- ---------- ------- -------------
Net increase (decrease) 4,397 334 137 20,105 920
Net assets available for
plan benefits:
Beginning of year 1,337 12,995 - - -
-------- -------- ---------- ------- -------------
End of year $ 5,734 $ 13,329 $ 137 $20,105 $ 920
======== ======== ========== ======= =============
<CAPTION>
------------------------------------------------------------------
Merrill
Lynch AIM Franklin
Growth Equity Custody Templeton Templeton
Fund Constellation Growth Growth Foreign
Class A Fund Fund Fund Fund
------- ------------- -------- --------- ---------
<S> <C> <C> <C> <C> <C>
Investment income
Interest
Dividends $ 115 $ 136 $ 121 $ 137
Distributions of loan
interest income 28 14
Net realized gains (losses) (137) (41) $ (7) (104)
Net unrealized appreciation
(depreciation in fair value
of investments (1,352) 474 440 (271)
-------- -------- ---------- ------- -------------
Total investments income (1,374) 597 561 (7) (224)
Contributions
Sentinel Transportation
Company's contributions 2,177 1,454 927 436
Participants' 4,464 2,681 1,778 161 1,392
-------- -------- ---------- ------- -------------
6,641 4,135 2,705 161 1,828
Withdrawals (445)
Net transfers among funds
Loans
Loan principal payments 283 119
Interfund transfer 610 562 3,540 (94) (265)
-------- -------- ---------- ------- -------------
165 845 3,540 (94) (146)
-------- -------- ---------- ------- -------------
Net increase (decrease) 5,432 5,577 6,806 60 1,458
Net assets available for
plan benefits:
Beginning of year 2,257 328 - - 858
-------- -------- ---------- ------- -------------
End of year $ 7,689 $ 5,905 $ 6,806 $ 60 $ 2,316
======== ======== ========== ======= =============
</TABLE>
(c) Previously known as Fixed Asset Fund
The accompanying notes are an integral part of the financial statements
12
<PAGE>
THRIFT PLAN FOR EMPLOYEES OF
SENTINEL TRANSPORTATION COMPANY
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
For The Year Ended December 31, 1997
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
Merrill
Merrill Lynch
Lynch Basic
Fidelity Fidelity MFS Capital Value
Magellan Fund Research Fund Fund
Fund PV1 Fund Class A Class A
------------- -------- ---------- ------------- ------------
<S> <C> <C> <C> <C> <C>
Investment income
Interest
Dividends $ 13,091 $ 1,186 $ 188 $ 4,301 $ 3,760
Distributions of loan interest income 711 89 199 361
Net realized gains (losses) 7,323 1,500 (126) (27) (339)
Net unrealized appreciation (depreciation)
in fair value of investments 47,292 3,522 303 (309) 584
------------- ---------- ---------- ------------ ------------
Total investment income (losses) 68,417 6,297 365 4,164 4,366
Contributions
Sentinel Transportation
Company's contributions 31,257 2,346 797 9,162 8,624
Participants' 60,631 3,519 1,010 13,582 11,329
------------- ---------- ---------- ------------- ------------
91,888 5,865 1,807 22,744 19,953
Withdrawals (14,446) (1,289) (1,625) (5,874) 2,008)
Net transfers among funds
Loans (4,745) (165) (3,749) (473)
Loan principal repayments 3,110 360 27 926 936
Interfund transfers (33,388) 21,671 3,632 5,780 (2,792)
------------- ---------- ---------- ------------- ------------
(49,469) 20,577 2,034 (2,917) 4,337)
------------- ---------- ---------- ------------- ------------
Net increase (decrease) 110,836 32,739 4,206 23,991 19,982
Net assets available for plan benefits:
Beginning of year 174,758 267 1,090 53,830 30,896
------------- ---------- ---------- ------------- ------------
End of year $ 285,594 $ 33,006 $ 5,296 $ 77,821 $ 50,878
============= ========== ========== ============= ============
(c) Previously known as Fixed
Asset Fund
<CAPTION>
Merrill Fidelity
MFS Lynch Fidelity Growth &
Total Global AIM Equity Income
Return Holdings Value Income Fund
Fund Class A Fund Fund Class A
-------- ----------- ---------- --------- --------
<S> <C> <C> <C> <C> <C>
Investment income
Interest
Dividends $ 166 $ 3,548 $ 1,057 $ 32 $ 1,839
Distributions of loan interest income 7 294 106 18
Net realized gains (losses) 22 804 13 813
Net unrealized appreciation (depreciation)
in fair value of investments (110) (362) 1,582 (20) 3,592
------- ----------- ---------- --------- -------
Total investment income (losses) 85 4,284 2,758 12 6,262
Contributions
Sentinel Transportation
Company's contributions 159 5,225 2,551 2,656
Participants' 217 8,329 4,545 916 5,388
------- ----------- ---------- --------- -------
376 13,554 7,096 916 8,044
Withdrawals (1,981)
Net transfers among funds
Loans (999) (73) (2,242)
Loan principal repayment 14 1,012 440 189
Interfund transfers 464 (7,641) 7,009 30,561
------- ----------- ---------- --------- -------
478 (9,609) 7,376 - 28,508
------- ----------- ---------- --------- -------
Net increase (decrease) 939 8,229 17,230 928 42,814
Net assets available for plan benefits:
Beginning of year 417 17,987 329 - 1,347
------- ----------- ---------- --------- -------
End of year $ 1,356 $ 26,216 $ 17,559 $ 928 $44,161
======= =========== ========== ========= =======
(c) Previously known as Fixed
Asset Fund
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
THRIFT PLAN FOR EMPLOYEES OF
SENTINEL TRANSPORTATION COMPANY
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
For The Year Ended December 31, 1997
<TABLE>
<CAPTION>
Fund Information
----------------------------------------------------
Pending
Settlement
Funds
Franklin & Total
Balance Accrued All
Sheet Income Funds
-------------- ---------------- ------------------
<S> <C> <C> <C>
Investment income
Interest $ 526 $ 526
Dividends $ 2 60,517
Distributions of loan
interest income 26 15,774
Net realized gains (losses) 40 68,527
Net unrealized appreciation
(depreciation) in fair value
of investments (20,633)
-------------- ---------------- ------------------
Total investment income (losses) 68 526 124,711
Contributions
Sentinel Transportation
Company's contributions 158 721,140
Participants' 158 1,173,422
-------------- ---------------- ------------------
316 - 1,894,562
Withdrawals (421,561)
Net transfers among funds
Loans (127) -
Loan principal repayments 56 -
Interfund transfers (576) (3,213) 58
-------------- ---------------- ------------------
(647) (3,213) (421,503)
-------------- ---------------- ------------------
Net increase (decrease) (263) (2,687) 1,597,770
Net assets available for
plan benefits:
Beginning of year 263 5,996 3,449,443
-------------- ---------------- ------------------
End of year $ - $ 3,309 $ 5,047,213
============== ================ ==================
(c) Previously known as Fixed
Asset Fund
</TABLE>
The accompanying notes are an integral part of the financial statements
14
<PAGE>
THRIFT PLAN FOR EMPLOYEES OF
SENTINEL TRANSPORTATION COMPANY
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
For The Year Ended December 31, 1997
<TABLE>
<CAPTION>
Fund Information
----------------------------------------------------------------------------------
Barclays
Global
Investors Merrill Fidelity
Dupont Aggressive Three-Way Lynch Low-
Common Asset Asset Equity Fixed Priced
Stock Allocation Allocation Index Income Loan Stock
Fund Portfolio Fund Trust 1 Fund Fund Fund
----------- ------------ ---------- ---------- ---------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income
Interest
Dividends $ 16,648 48
Distributions of loan
interest income 1,431 $ 3,240
Net realized gains (losses) 28,741 $ 1,934 $ 4,346 15,746
Net unrealized appreciation
(depreciation) in fair
value of investments 113,200 8,723 85,905 (17)
----------- ------------ ---------- ---------- ---------- --------- -----------
Total investment income 160,020 $ - 10,657 4,346 104,891 $ - 31
Contributions
Sentinel Transportation
Company's contributions 188,554 105 10,115 3,890 453,686 312
Participants' 267,899 175 16,136 5,221 603,309 4,192 994
Rollover
----------- ------------ ---------- ---------- ---------- --------- -----------
456,453 280 26,251 9,111 1,056,995 4,192 1,306
Withdrawls (103,762) (11,220) (2,410) (176,852) (3,843)
Net transfers among funds
Loans (40,901) (1,313) (1,025) (99,397) 164,093
Loan principal repayments 4,374 1,250 17,356 (24,075)
Interfund transfers (66,095) (23,292) (38,988) (263,931)
Assets transfered in 304,795 311 9,421 71,931
Other (debits) & credits (2,738) (458) (5,353) 135
Affiliated company
transfers in (out), net
----------- ------------ ---------- ---------- ---------- --------- -----------
95,673 - (34,722) (33,002) (456,246) 136,310 -
----------- ------------ ---------- ---------- ---------- --------- -----------
Net increase (decrease) 712,146 280 2,186 (19,545) 705,640 140,502 1,337
Net assets available
for plan benefits:
Beginning of year 430,698 - 55,560 19,545 1,048,086 11,826 -
----------- ------------ ---------- ---------- ---------- --------- -----------
End of year $1,142,844 $ 280 $ 57,746 $ - $1,753,726 $ 152,328 $ 1,337
=========== ============ ========== ========== ========== ========= ===========
<CAPTION>
-----------------------------------------------------------------------
Merrill
Lynch AIM
Growth Equity Franklin Templeton Fidelity
Fund Constellation Balance Foreign Magellan
Class A Fund Sheet Fund Fund
------------- --------------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Investment income
Interest
Dividends $ 122 $ 5 $ 10 $ 78 $ 10,605
Distributions of loan
interest income 8 260
Net realized gains (losses) 4,993
Net unrealized appreciation
(depreciation) in fair
value of investments (207) (7) (9) (124) 16,525
------------- --------------- ----------- ------------ ------------
Total investment income (85) (2) 9 (46) 32,383
Contributions
Sentinel Transportation
Company's contributions 842 108 119 157 35,730
Participants' 1,500 222 119 157 49,049
Rollover
------------- --------------- ----------- ------------ ------------
2,342 330 238 314 84,779
Withdrawls (14,765)
Net transfers among funds
Loans (14,076)
Loan principal repayments 16 676
Interfund transfers (26,488)
Assets transfered in 590 6,808
Other (debits) & credits (1,003)
Affiliated company
transfers in (out), net
------------- --------------- ----------- ------------ -------------
- - 16 590 (48,848)
------------- --------------- ----------- ------------ -------------
Net increase (decrease) 2,257 328 263 858 68,314
Net assets available
for plan benefits:
Beginning of year - - - - 106,444
------------- --------------- ----------- ------------ -------------
End of year $ 2,257 $ 328 $ 263 $ 858 $ 174,758
============= =============== =========== ============ =============
</TABLE>
The accompanying notes are an integral part of the financial statements
15
<PAGE>
THRIFT PLAN FOR EMPLOYEES OF
SENTINEL TRANSPORTATION COMPANY
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
For The Year Ended December 31, 1997
<TABLE>
<CAPTION>
Fund Information
---------------------------------------------------------------------------------------------
Merrill Franklin
Merrill Lynch Small Merrill Merrill
Lynch Basic Capital Lynch MFS Lynch
Fidelity MFS Capital Value Growth Equity Total Global
Fund Research Fund Fund Fund Index TR Return Holdings
PV1 Fund Class A Class A Class 1 Tier 6 Fund Class A
---------- ---------- --------- --------- ---------- --------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income
Interest
Dividends $ 9 $ 43 $ 4,101 $ 2,638 $ 536 $ 31 $ 1,990
Distributions of loan
interest income 8 28 7 $ 18 93
Net realized gains (losses) 322 1,376 65 864
Net unrealized appreciation
(depreciation) in fair
value of investments (4) (36) 3,312 1,776 (675) 2,566 (20) (1,782)
---------- ---------- --------- --------- ---------- --------- ------- -------------
Total investment income 13 7 7,763 5,797 (139) 2,649 11 1,165
Contributions
Sentinel Transportation
Company's contributions 119 215 9,638 10,066 557 4,888 189 5,517
Participants' 119 253 14,000 10,425 1,399 7,229 217 8,022
Rollover ---------- ---------- --------- --------- ---------- --------- ------- -------------
238 468 23,638 20,491 1,956 12,117 406 13,539
Withdrawals (4,540) (692) (1,873) (9,361)
Net transfers among funds
Loans (1,941) (1,571) (651) (3,218)
Loan principal repayments 16 55 57 36 239
Interfund transfers (4,549) (20,753) (900)
Assets transfered in 615 3,778 17,055 11,178 35,544 155
Other (debits) & credits (738)
Affiliated company (10,258)
transfers in (out), net
---------- ---------- --------- --------- ---------- --------- ------- -------------
16 615 (7,197) (5,904) 11,178 22,798 - (13,823)
---------- ---------- --------- --------- ---------- --------- ------- -------------
Net increase (decrease) 267 1,090 24,204 20,384 12,995 37,564 417 881
Net assets available
for plan benefits:
Beginning of year - - 29,626 10,512 17,106
---------- ---------- --------- --------- ---------- --------- ------- -------------
End of year $ 267 $ 1,090 $ 53,830 $ 30,896 $ 12,995 $ 37,564 $ 417 $ 17,987
========== ========== ========= ========= ========== ========= ======= =============
<CAPTION>
---------------------------------------------
Pending
Fidelity Settlement
Growth Funds
Aim Income &
Value Fund Accrued Total
Fund Class A Income All
---------- ---------- --------- ---------
<S> <C> <C> <C> <C>
Investment income
Interest $ 2,781 $ 2,781
Dividends $ 8 $ 25 $ 36,897
Distributions of loan
interest income 5,093
Net realized gains (losses) 58,387
Net unrealized appreciation
(depreciation) in fair
value of investments (9) 15 229,132
---------- ---------- --------- -----------
Total investment income (1) 40 2,781 332,290
Contributions
Sentinel Transportation
Company's contributions 108 313 7 725,235
Participants' 222 994 6 991,859
Rollover ---------- ---------- --------- -----------
330 1,307 13 1,717,094
Withdrawals (329,318)
Net transfers among funds
Loans -
Loan principal repayments -
Interfund transfers (359,230) (804,226)
Assets transfered in 462,181
Other (debits) & credits (10,155)
Affiliated company 362,432 352,174
transfers in (out), net
---------- ---------- --------- -----------
- - 3,202 (329,344)
---------- ---------- --------- -----------
Net increase (decrease) 329 1,347 5,996 1,720,040
Net assets available
for plan benefits:
Beginning of year 1,729,403
---------- ---------- --------- -----------
End of year $ 329 $ 1,347 $ 5,996 $ 3,449,443
========== ========== ========= ===========
</TABLE>
The accompanying notes are an integral part of the financial statements
16
<PAGE>
THRIFT PLAN FOR EMPLOYEES OF
SENTINEL TRANSPORTATION COMPANY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1998 AND 1997
NOTE 1 -- DESCRIPTION OF THE THRIFT PLAN:
The following description of the Thrift Plan for employees of Sentinel
Transportation Company provides only general information. Members should refer
to the Plan document for the Plan's provisions.
THE PLAN
Sentinel Transportation Company (the "Company") became a wholly owned
subsidiary of E. I. du Pont de Nemours and Company in December 1995. Prior to
its incorporation, the Company was part of Conoco Inc.'s downstream operation
(transportation). As part of Conoco, Inc., eligible employees of such operation
participated in the Thrift Plan for the Employees of Conoco, Inc.
With the incorporation of the Company, Conoco employees, dedicated to such
operations, were transferred to and became Sentinel Employees. Sentinel's Board
of Directors adopted, effective January 1, 1996, the Thrift Plan for Sentinel
Transportation Company (the "Plan"), to provide the continued participation of
such former Conoco employees and the participation of new employees in a tax
qualified plan.
The Plan is a defined contribution plan which was established in 1996. The
Plan is subject to the provisions of the Employee Retirement Income Security Act
of 1974 and the Internal Revenue 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 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, 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 Thrift Plan for
Employees of Conoco, Inc.; are eligible to participate in the Plan.
17
<PAGE>
THRIFT PLAN FOR EMPLOYEES OF
SENTINEL TRANSPORTATION COMPANY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1998 AND 1997
An eligible employee may authorize the Company to make a payroll deduction
under the Plan ranging from 1% to 38% of monthly compensation. The amount
deducted can be deposited into a before-tax or after-tax account or some
combination thereof; however, no more than 19% may be deposited into a before-
tax account. 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 lump sum deposits or deposits in the form of
monthly deductions in excess of 16%. 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 savings 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 withdraw 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. A Participant who is an active employee may
elect to defer minimum distributions until he separates from service or may
elect to commence minimum distribution payments in March following the year in
which he reaches age 70-1/2.
Participants may borrow up to one-half of their nonforfeitable account
balances 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 which 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.
18
<PAGE>
THRIFT PLAN FOR EMPLOYEES OF
SENTINEL TRANSPORTATION COMPANY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1998 AND 1997
INVESTMENT FUNDS
Stable Value Fund (formerly known as the Fixed Income Fund)
-----------------
Investments under agreement with one or more financial institutions, including
insurance companies, banks and other investment entities which provide a
predetermined or stable rate of return and are held at contract value.
DuPont Common Stock Fund
------------------------
Common stock of E.I. du Pont de Nemours and Company, Sentinel Transportation
Company's ultimate parent 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, Inc. Class A - seeks highest total investment
return consistent with prudent risk through global diversification.
Merrill Lynch Capital Fund Class A - seek highest total investment return
consistent with prudent risk.
Merrill Lynch Basic Value Fund Class A - seeks capital appreciation and income.
Merrill Lynch Growth Fund Class A - seeks growth of capital and return.
Index Funds:
------------
Merrill Lynch Small Cap Index Trust - seeks to track the holdings and total
return of the Russell 2000 Index.
Merrill Lynch International Index Trust - seeks to track the holdings and return
of the Morgan Stanley Capital International EAFE (Europe, Australia, and Far
East) Index.
19
<PAGE>
THRIFT PLAN FOR EMPLOYEES OF
SENTINEL TRANSPORTATION COMPANY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1998 AND 1997
Merrill Lynch Equity Index Trust - seeks to track the holdings and total return
of the Standard & Poor's 500 Composite Price Index (S&P 500 Index). The Equity
Index Tier 6 Trust is referred to as the Large Company Stock Index in
Participant communications.
Other Mutual Funds
------------------
In addition to the 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 degree of risk. The list of mutual funds
available is:
AIM Equity Constellation Fund - seeks aggressive capital growth.
AIM Value Fund - seeks long-term capital growth.
Fidelity Fund PVI - seeks long-term capital growth.
Fidelity Equity Income Fund - seeks reasonable income and potential for capital
appreciation.
Fidelity Growth & Income Fund Class A - seeks high total return.
Fidelity Low-Priced Stock Fund - seeks capital appreciation.
Fidelity Magellan Fund - seeks capital appreciation.
Franklin Balance Sheet Investment - seeks high total return.
Franklin Custody Growth Fund - seeks capital appreciation.
Franklin Small Cap Growth Fund - seeks long-term capital growth.
Hotchkis & Wiley International - seeks current income, long-term growth of
income and growth of capital.
Janus Enterprise Fund - seeks long-term growth of capital.
Janus Mercury Fund - seeks long-term growth of capital.
MFS Research Fund - seeks long-term growth of capital and future income.
MFS Total Return Fund - seeks above-average income consistent with prudent
employment of capital, and growth of capital and income.
20
<PAGE>
THRIFT PLAN FOR EMPLOYEES OF
SENTINEL TRANSPORTATION COMPANY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1998 AND 1997
Templeton Foreign Fund - seeks long-term capital growth.
Templeton Growth Fund - seeks long-term capital growth.
Asset Allocation Portfolios
---------------------------
Four Asset Allocation Portfolios are offered as investment options for balancing
risk and return:
Barclays Global Investors Three-Way Asset Allocation Fund - 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.
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 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 the 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) represents the net movement of
participant account balances among the Plan and other defined contribution
benefit plans of the Affiliated Companies.
21
<PAGE>
THRIFT PLAN FOR EMPLOYEES OF
SENTINEL TRANSPORTATION COMPANY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1998 AND 1997
ADMINISTRATION
The designated trustee of all 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 Sentinel
Transportation Company or its' delegee 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 for 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, Asset Allocation Funds, Index Funds, and Mutual Funds
shall be included in the cost of such securities of investments, or deducted
from the sale proceeds, as the case may be. All administrative expenses not
specified in the preceding sentence, shall be paid out of rebates or record
keeping costs and other discounts in connection with investment vehicles
available in the Plan. Any administrative costs in excess of rebates or other
discounts should be the responsibility of the Company.
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 $77,980 and $72,687,
Company Contributions of $60,451 and $58,426, and loan repayments of $9,171 and
$4,192 which are amounts due as of December 31, 1998 and December 31, 1997
respectively.
22
<PAGE>
THRIFT PLAN FOR EMPLOYEES OF
SENTINEL TRANSPORTATION COMPANY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1998 AND 1997
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 the Stable
Value Fund, which is valued at contract value. The Stable Value Fund guaranteed
investment contracts, separate account portfolios 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 which
represent the net assets value of shares held by the Plan at year-end.
Common/Collective Trust Funds are stated at fair value of all underlying assets
as reported by the applicable custodian. Loans to Participants, short-term
investments, and cash are valued at cost, which approximates fair value. DuPont
Common Stock is valued at its quoted price 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 by the New York Stock Exchange -
Composite Transactions on the last day proceeding the date of such purchase from
DuPont.
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 investment securities are based on average cost of the securities
sold. 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.
23
<PAGE>
THRIFT PLAN FOR EMPLOYEES OF
SENTINEL TRANSPORTATION COMPANY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1998 AND 1997
NOTE 3 -- INVESTMENTS
The Stable Value 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 the Thrift Plan for
Employees of Conoco Inc. (the "Conoco Plan") administered by Conoco Inc, a
wholly owned subsidiary of DuPont. Accordingly, the investments in these funds
by participants in the Plan and the Consol Plan and the Conoco Plan have been
commingled for investment purposes; however, the Plan assets are maintained
separately by the trustee.
The Stable Value Fund consists of guaranteed investment contracts (GIC),
separate account portfolios (SAP), and synthetic guaranteed investment contracts
(SYN).
The following individual contracts represent more than 5% of the net assets
available for plan benefits as of December 31, 1998 and 1997:
Prudential Insurance Company 8.55% 07/01/01
Metropolitan Life Insurance Company 7.36% 01/01/00
The ending balances of these contracts are listed below:
Contract Contract
Value Value
12/31/98 12/31/97
--------- ---------
Prudential Insurance Company $ 367,309 $ 258,831
Metropolitan Life Insurance Company $ - $ 201,936
The crediting interest rate ranged from 5.93% to 9.89% for the years ended
December 31, 1998 and 1997. The fund's blended interest rate of return for the
year was 7.84% in 1998 and 7.63% in 1997.
The crediting rates for SAP and SYN contracts are reset annually and are
based on 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 weighted average life), and market value relative to contract value.
All contracts have a guaranteed rate of 0% or higher.
24
<PAGE>
THRIFT PLAN FOR EMPLOYEES OF
SENTINEL TRANSPORTATION COMPANY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1998 AND 1997
The contract values and fair values of investment contract as of December
31, 1998 are as follows:
Contract
Value Fair Value
---------- ----------
Guaranteed Investment Contracts $ 179,775 $ 179,775
Money Fund 42,629 42,629
Synthetic Guaranteed Investment Contracts 1,666,703 1,666,703
Separate Account Guaranteed Contracts 505,280 505,280
---------- ----------
$2,394,387 $2,394,387
========== ==========
Included in the fair value of synthetic guaranteed investment contracts is
($208) related to wrapper contracts which guarantee the contract value of the
synthetic guaranteed investment contracts for participant-initiated withdrawal
events.
NOTE 4 -- REALIZED AND UNREALIZED GAINS AND LOSSES
Realized and unrealized gains and losses are calculated based upon
historical cost of assets. Such gains and losses are computed on a current value
basis for Form 5500. The difference may result in a differing classification
between realized and unrealized but the total gain or loss will be un affected.
NOTE 5 -- INCOME TAX STATUS
The Plan was established January 1, 1996. The Trustees and legal counsel
have applied for a favorable determination letter on May 14, 1999 from the
Internal Revenue Service. The Plan is designed and being operated in compliance
with the applicable requirements of the Internal Revenue Code. Therefore, the
Trustees and legal counsel believe that the Plan was qualified and the related
trust was tax-exempt as of the financial statement date.
NOTE 6 -- 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 which are exempt from the prohibited transaction rules.
25
<PAGE>
THRIFT PLAN FOR EMPLOYEES OF
SENTINEL TRANSPORTATION COMPANY
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1998 AND 1997
NOTE 7 -- SUBSEQUENT EVENTS
Effective March 1, 1999, employees will become eligible to participate on
the first of the month following the month of hire. Employees with less than one
year of service as of March 1, 1999 will become eligible for participation on
this date.
Effective March 1, 1999, if a participant terminates employment with the
Company and their account balance is less than $5,000, their account balance
will automatically be distributed. If a participant's balance is greater than
$5,000 at termination, the participant may leave their balance in the Plan until
April 1 of the year when the participant reaches 70-1/2.
In 1999, the Company's parent will complete its spin-off from duPont.
Management does not expect this to materially affect the Plan.
26
<PAGE>
[LETTERHEAD OF SIMON MASTER & SIDLOW, P.A.]
Independent Auditors' Report
----------------------------
on Supplemental Schedules
-------------------------
Our audits were performed for the purpose of forming an opinion on the
basic financial statements taken as a whole. The supplemental schedules of
assets held for investment purposes and of 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 schedules
have been subjected to the auditing procedures applied in the audit 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/ Simon, Master & Sidlow, P.A
-------------------------------
Simon, Master & Sidlow, P.A.
Wilmington, Delaware
July 9, 1999
27
<PAGE>
SCHEDULE I
THRIFT PLAN FOR EMPLOYEES
OF
SENTINEL TRANSPORTATION COMPANY
ITEM 27A-SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1998
<TABLE>
<CAPTION>
Current
Description Cost Value
----------- ----- -------
<S> <C> <C>
Aetna Life Insurance Co. -9.89%, 06/01/00 (GIC) $ 50,037 $ 50,037
Aetna Life Insurance Co. -9.32%, 06/01/99 (GIC) 20,749 20,749
Aetna Life Insurance Co. -7.05%, 12/31/25 (SYN) 174,133 174,133
Bankers Trust Co. -5.93%, 12/31/99 (SYN) 144,091 144,091
Bankers Trust Co. -7.68%, 12/31/25 (SYN) 114,279 114,279
CDC Inv. Mgmt. Corp. -6.95%, 10/01/02 (SYN) 121,826 121,826
Capital Holding Corp. -7.07%, 01/01/04 (SYN) 194,056 194,056
Citibank -7.42%, 08/31/01 (SYN) 61,569 61,569
Deutsche Bank -6.73%, 12/31/25 (SYN) 153,603 153,603
Deutsche Bank -7.03%, 12/31/25 (SYN) 217,278 217,278
J.P. Morgan -6.02%, 01/01/00 (SYN) 162,414 162,414
ML Premier Institutional Fund (Money Fund) 42,629 42,629
Metropolitan Life -7.36%, 01/01/00 (SAP) 137,971 137,971
New York Life -9.71%, 06/01/99 (GIC) 21,573 21,573
New York Life -9.11%, 06/01/99 (GIC) 20,483 20,483
Peoples Security Life Ins. -6.75%, 12/31/99 (SYN) 130,424 130,424
Principal Mutual Life Ins. Co. -9.10%, 06/01/99 (GIC) 19,819 19,819
Prudential Insurance -8.55%, 07/01/01 (SAP) 367,309 367,309
Travelers Insurance -9.66%, 06/01/00 (GIC) 47,114 47,114
Union Bank of Switzerland -6.85%, 01/01/25 (SYN) 193,030 193,030
---------- ----------
Total GIC, Money Fund SAP, SYN $2,394,387 $2,394,387
---------- ----------
DuPont Common Stock Fund $1,727,582 $1,491,369
Aggressive Asset Allocation Portfolio 1,966 2,115
Barclays 3-way 48,350 58,893
Merrill Lynch Small Cap Index 421 448
Merrill Lynch Equity Index Trust 70,838 83,661
Merrill Lynch International Index 1,286 1,355
Fidelity Low Priced Stock 6,212 5,710
Merrill Lynch Global Holdings Class A 25,455 25,094
Templeton Growth Fund 40 40
AIM Value Fund 15,261 16,843
Fidelity Growth & Income Fund 39,985 43,576
Merrill Lynch Growth Fund 8,324 6,972
AIM Equity Constellation Fund 5,094 5,568
Templeton Foreign Fund 2,530 2,260
Fidelity Magellan Fund 232,113 279,407
Fidelity Fund 28,888 32,410
Fidelity Equity Income Fund 948 928
Franklin Cust Fund 5,957 6,397
MFS Research Fund 4,856 5,160
Merrill Lynch Capital Fund 76,286 75,977
Merrill Lynch Basic Value Fund 48,546 49,130
Franklin Small Cap Growth Fund 13,077 12,971
Janus Enterprise Fund 91 97
Janus Mercury Fund 16,781 19,234
Hotchkis & Wiley International Fund 939 920
MFS Total Return Fund 1,381 1,271
Loans to Participants 274,109 274,109
---------- ----------
Total Investment Portfolio $5,051,704 $4,896,302
========== ==========
</TABLE>
GIC: Guaranteed Investment Contract
SAP: Separate Account Portfolio
SYN: Synthetic Guaranteed Investment Contract
28
<PAGE>
SCHEDULE II
THRIFT PLAN FOR EMPLOYEES
OF
SENTINEL TRANSPORTATION COMPANY
ITEM 27D-SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
TRANSACTIONS OR SERIES OF TRANSACTIONS IN
EXCESS OF 5% OF CURRENT VALUE OF PLAN ASSETS
<TABLE>
<CAPTION>
Current
Value of
Identity Contract Asset on
of Party Description Purchase Value/Sales Transaction Transaction Gain
on
Involved of Asset Price Price Date Date
---------- ------------ ---------- ---------- ---------- -----------
Transaction
------------
<S> <C> <C> <C> <C> <C> <C>
DuPont DuPont Stock $1,047,564 $ 1,047,564 Various $
DuPont DuPont Stock 380,781 436,756 Various 55,975
Sentinel Stable Value Fund 1,376,635 1,376,635 Various
Sentinel Stable Value Fund 769,780 815,494 Various 45,7144
ML Fidelity Megellan 138,078 138,078 Various
ML Fidelity Megellan 71,164 81,479 Various 10,315
Sentinel Loan Fund 213,965 213,965 Various
Sentinel Loan Fund 87,992 87,992 Various
ML Pending Settlement 700,190 700,190 Various
ML Pending Settlement 703,403 70,403 Various
</TABLE>
29
