SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT
Pursuant to Section 15(d) of the Securities Exchange Act of 1934
For the Fiscal Year Ended December 31, 1995
A. Full Title of the Plan and the Address of the Plan, if
Different from that of the Issuer named below:
Indiana Gas Company, Inc.
Retirement Savings Plan
1630 North Meridian Street
Indianapolis, IN 46202
B. Name of issuer of the Securities Held Pursuant to the Plan
and the Address of its Principal Executive Officer:
Indiana Energy, Inc.
1630 North Meridian Street
Indianapolis, IN 46202
ITEM 1 - Changes in the Plan
Effective July 1, 1995, T. Rowe Price (the trustee)
assumed trustee and recordkeeping responsibilities
from Fifth Third Bank. Plan assets, except for
Fund A, were sold and reinvested in four similar
funds established by T. Rowe Price at the
participants' current investment allocation percentages.
ITEM 2 - Changes in Investment Policy
None
ITEM 3 - Contributions Under the Plan
None
ITEM 4 - Participating Employees
Approximately 1,241 employees were participants in the
Plan at December 31, 1995.
ITEM 5 - Administration of the Plan
(a) The following table sets forth the names of the persons who
administer the Plan and all positions or offices held with the
issuer, Indiana Energy, Inc. (IEI) and Indiana Gas Company, Inc.
(IGC). Each person acts as a member of the Plan Committee and
has an address at 1630 North Meridian Street, Indianapolis,
Indiana 46202.
Positions or Officers with issuer
Name or Affiliate
Lawrence A. Ferger President and Chief Executive
Officer of IGC and IEI
Niel C. Ellerbrook Senior Vice President & Chief
Financial Officer of IGC; Vice
President and Treasurer of IEI
Paul T. Baker Senior Vice President & Chief
Operating Officer of IGC
Steven M. Schein Vice President and Treasurer of IGC
Thomas J. Zabor Vice President of Human Resources, IGC
As of December 31, 1995, the trust fund was managed
by T. Rowe Price, as trustee.
(b) The members of the Plan committee received no compensation
from the Plan for Services as members of the Plan Committee
during the fiscal year ended December 31, 1995. See Item 6(b)
for information concerning compensation of the trustee.
ITEM 6 - Custodian of Investments
(a) Fifth Third Bank, Fifth Third Center, Cincinnati, Ohio
45263, acted as custodian of the securities and other investments
of the Plan until July 1, 1995. Since July 1, 1995, T. Rowe
Price, P.O. Box 17215, Baltimore, MD 21297-0354, has acted
as custodian of the securities and other investments of the Plan.
(b) Not Applicable
(c) Both custodians are exempt under ERISA from having to furnish
any bond in connection with the custody of security investments
or other assets of the Plan.
ITEM 7 - Reports to Participating Employees
Employees participating in the plan receive annual
summaries of the operations of the Plan (including
financial date) and quarterly statements of participant
accounts reflecting account balances, contributions to
the account, and earnings for the account.
ITEM 8 - Investment of Funds
(a) (1) Not Applicable
(a) (2) Not Applicable
(b) Not Applicable
ITEM 9 - Financial Statements and Exhibits
(a) The following financial statements are included in this Form
11-k:
Report of Independent Public Accountants
Statement of Financial Condition as of December 31,
1995
Statement of Financial Condition as of December 31,
1994
Statement of Income and Other Changes in Plan Equity
as of December 31, 1995
Statement of Income and Other Changes in Plan Equity
as of December 31, 1994
Statement of Income and Other Changes in Plan Equity
as of December 31, 1993
Notes to Financial Statements
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Plan committee has duly caused this annual report to be
signed by the Undersigned thereunto duly authorized.
INDIANA GAS COMPANY, INC.
RETIREMENT SAVINGS PLAN
By: The Plan Committee as
Plan Administrator
/s/Lawrence A. Ferger
Lawrence A. Ferger
/s/Niel C. Ellerbrook
Niel C. Ellerbrook
/s/Paul T. Baker
Paul T. Baker
/s/Steven M. Schein
Steven M. Schein
/s/Thomas J. Zabor
Thomas J. Zabor
Date: June 28, 1995
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To Indiana Gas Company, Inc.
Retirement Savings Plan Committee:
We have audited the accompanying statements of financial
condition of the INDIANA GAS COMPANY, INC. RETIREMENT SAVINGS
PLAN as of December 31, 1995, and 1994, and the related
statements of income and other changes in plan equity for the
three years ended December 31, 1995. These financial statements
and the schedules referred to below are the responsibility of the
plan committee. Our responsibility is to express an opinion on
these financial statements and schedules 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 the plan committee, 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 financial position
of the Plan as of December 31, 1995, and 1994, and the changes in
its plan equity for the three years ended December 31, 1995, 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
supplemental schedules of assets held for investment purposes and
reportable transactions are presented for the purpose of
additional analysis and are not a required part of the basic
financial statements but are supplementary information required
by the Department of Labor's Rules and Regulations for Reporting
and Disclosure under the Employee Retirement Income Security Act
of 1974. The supplemental schedules and Fund Information have
been subjected to the auditing procedures applied in the audits
of the basic financial statements and, in our opinion, are fairly
stated in all material respects in relation to the basic
financial statements taken as a whole.
ARTHUR ANDERSEN LLP
Indianapolis, Indiana,
June 10, 1996.
<TABLE>
INDIANA GAS COMPANY, INC.
RETIREMENT SAVINGS PLAN
STATEMENT OF FINANCIAL CONDITION
DECEMBER 31, 1995
T. Rowe Price
Indiana -----------------------------------------------------------------
Energy, Inc. Stable Equity International New Equity Spectrum
Common Stock Value Income Balanced Stock Horizons Index Growth Participants'
Fund Fund Fund Fund Fund Fund Fund Fund Loan Fund Total
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at current
market value (cost
$39,686,010)-
Indiana Energy,
Inc. common
stock $22,771,495 $ - $ - $ - $ - $ - $ - $ - $ - $22,771,495
Collective/
Common Trust
Fund - 6,733,899 - - - - - - - 6,733,899
Mutual Funds - - 7,404,291 4,554,734 440,534 981,897 463,492 357,286 - 14,202,234
Participants'
loans - - - - - - - - 2,713,615 2,713,615
----------- ---------- ---------- ---------- -------- ---------- -------- -------- ---------- -----------
Total
investments 22,771,495 6,733,899 7,404,291 4,554,734 440,534 981,897 463,492 357,286 2,713,615 46,421,243
Employer
contributions
receivable 481,365 148,282 143,939 122,100 14,411 41,001 28,012 16,565 - 995,675
----------- ---------- ---------- ---------- -------- ---------- -------- -------- ---------- -----------
PLAN EQUITY $23,252,860 $6,882,181 $7,548,230 $4,676,834 $454,945 $1,022,898 $491,504 $373,851 $2,713,615 $47,416,918
=========== ========== ========== ========== ======== ========== ======== ======== ========== ===========
The accompanying notes are an integral part of this statement.
</TABLE>
<TABLE>
INDIANA GAS COMPANY, INC.
RETIREMENT SAVINGS PLAN
STATEMENT OF FINANCIAL CONDITION
DECEMBER 31, 1994
Indiana Energy, Provident
Inc. Stable Mutual
Common Stock Value Equity Value Line Participants'
Fund A Fund B Fund C Fund D Loan Fund Total
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at market (cost $30,909,836) -
Short-term funds $ 20,968 $ -- $ 67,976 $ 189,305 $ -- $ 278,249
Indiana Energy, Inc. common stock 17,922,207 -- -- -- -- 17,922,207
Common stock -- -- -- 1,992,107 -- 1,992,107
Equity Mutual Fund -- -- 4,854,979 -- -- 4,854,979
U. S. Treasury notes -- -- -- 1,149,637 -- 1,149,637
Guaranteed investment contracts -- 6,053,450 -- -- -- 6,053,450
Participants' loans receivable -- -- -- -- 2,474,301 2,474,301
---------- ---------- ---------- ---------- ---------- -----------
Total investments 17,943,175 6,053,450 4,922,955 3,331,049 2,474,301 34,724,930
Cash -- 21,643 20,588 -- -- 42,231
Employer contributions receivable 599,542 136,577 120,696 122,998 -- 979,813
Other receivables 8,405 33,472 (2,612) 24,926 (2,863) 61,328
---------- --------- --------- ---------- ---------- -----------
Total assets 18,551,122 6,245,142 5,061,627 3,478,973 2,471,438 35,808,302
---------- --------- --------- ---------- ---------- -----------
LIABILITIES:
Accrued new loans 46,146 (39,584) 306 (7,130) 262 --
Accrued forfeitures 34,529 12,024 6,497 6,455 -- 59,505
Accrued plan interfund transfers (52,566) 52,605 (117) 78 -- --
---------- --------- --------- ---------- ---------- -----------
Total liabilities 28,109 25,045 6,686 (597) 262 59,505
---------- --------- --------- ---------- ---------- -----------
PLAN EQUITY $18,523,013 $6,220,097 $5,054,941 $3,479,570 $2,471,176 $35,748,797
=========== ========== ========== ========== ========== ===========
The accompanying notes are an integral part of this statement.
</TABLE>
<TABLE>
INDIANA GAS COMPANY, INC.
RETIREMENT SAVINGS PLAN
STATEMENT OF INCOME AND OTHER CHANGES IN PLAN EQUITY
FOR THE YEAR ENDED DECEMBER 31, 1995
T. Rowe Price
-----------------------------------------------------------
Indiana Provident Inter- Parti-
Energy, Inc. Stable Mutual Stable Equity national New Equity Spectrum cipants'
Common Stock Value Equity Value Line Value Income Balanced Stock Horizons Index Growth Loan
Fund A Fund B Fund C Fund D Fund Fund Fund Fund Fund Fund Fund Fund Total
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Employee
contribu-
tions $ 1446180 $ 249166 $ 260460 $ 245857 $ 240879 $ 274558 $ 232840 $ 9124 $ 37185 $ 26805 $ 14871 $ - $ 3037925
Employer
contribu-
tions 1071562 118232 134659 126694 261858 284613 242566 19770 59227 41515 24124 - 2384820
Interest
income 3184 203999 1655 50249 - - - - - - - 163872 422959
Dividend
income 1005824 - - 13728 205265 260391 121306 13276 103140 12286 23959 - 1759175
Unrealized
apprecia-
tion
(deprecia-
tion)
of invest-
ments 2852422 - - - - 659041 256677 4265 (45302) 14128 (5973) - 3735258
Realized
gain
(loss) on
invest-
ments 244209 - 829920 365127 - 46072 23872 - (1826) 2 - - 1507376
Other
income
(expense),
net 19576 (9503) (2569) (8674) (4883) (368) (246) - - - - - (6667)
--------- --------- ---------- -------- -------- -------- -------- ------- -------- ------- ------- -------- ---------
6642957 561894 1224125 792981 703119 1524307 877015 46435 152424 94736 56981 163872 12840846
DEDUCTIONS:
Distribu-
tion of
benefits to
participants (517545) (197970) (137289) (39998) (149330) (97224) (33369) - - - - - (1172725)
INTERFUND
TRANSFERS (1418609) (6442905) (6065593)(4148968) 6264647 6066706 3773553 405996 860829 392100 312244 - -
LOAN REPAY-
MENTS 732661 118956 111003 123815 90630 124411 95968 2560 9802 4807 4690 (1419303) -
LOANS
ISSUED (709617) (260072) (187187) (207400) (26885) (69970) (36333) (46) (157) (139) (64) 1497870 -
--------- ---------- ---------- -------- -------- -------- -------- ------- -------- ------- ------- -------- ---------
Net increase
(decrease) 4729847 (6220097) (5054941)(3479570) 6882181 7548230 4676834 454945 1022898 491504 373851 242439 11668121
PLAN EQUITY,
December 31,
1994 18523013 6220097 5054941 3479570 - - - - - - - 2471176 35748797
--------- ---------- ---------- -------- -------- -------- -------- ------- -------- ------- ------- -------- ---------
PLAN EQUITY,
December 31,
1995 $23252860 $ - $ - $ - $6882181 $7548230 $4676834 $454945 $1022898 $491504 $373851 $2713615 $47416918
========= ========== ========== ======== ======== ======== ======== ======= ======== ======= ======= ======== =========
The accompanying notes are an integral part of this statement.
</TABLE>
<TABLE>
INDIANA GAS COMPANY, INC.
RETIREMENT SAVINGS PLAN
STATEMENT OF INCOME AND OTHER CHANGES IN PLAN EQUITY
FOR THE YEAR ENDED DECEMBER 31, 1994
Indiana Energy, Provident
Inc. Stable Mutual
Common Stock Value Equity Value Line Participants'
Fund A Fund B Fund C Fund D Loan Fund Total
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Employee contributions $ 941,532 $ 302,458 $ 380,208 $ 373,031 $ -- $ 1,997,229
Employer contributions 1,100,565 304,462 333,922 340,433 -- 2,079,382
Interest income 4,260 275,954 2,160 81,092 118,794 482,260
Dividend income 566,816 -- -- 12,469 -- 579,285
Unrealized depreciation of assets (233,078) -- (40,973) (97,212) -- (371,263)
Realized loss on investments -- -- -- (61,117) -- (61,117)
Forfeitures (22,976) (11,494) (4,879) (3,667) -- (43,016)
Other income (expense), net (13,494) (13,715) (1,072) (1,922) 43 (30,160)
---------- ---------- ---------- ---------- ---------- -----------
2,343,625 857,665 669,366 643,107 118,837 4,632,600
DEDUCTIONS:
Distribution of benefits to participants 252,410 113,190 53,812 30,397 53,277 503,086
---------- ---------- ---------- ---------- ---------- -----------
2,091,215 744,475 615,554 612,710 65,560 4,129,514
TRANSFERS OF PARTICIPANTS'
BALANCES BETWEEN
SAVINGS PLANS 5,429 (4,521) (1,519) (1,172) -- (1,783)
OTHER PLAN INTERFUND TRANSFERS 27,772 (51,810) 50,302 (26,264) -- --
LOAN REPAYMENTS 426,987 131,424 131,382 129,717 (819,510) --
LOANS ISSUED (437,699) (253,981) (132,661) (156,224) 980,565 --
---------- ---------- ---------- ---------- ---------- -----------
Net increase 2,113,704 565,587 663,058 558,767 226,615 4,127,731
TRANSFER OF ASSETS FROM THE
RETIREMENT SAVINGS PLAN FOR
BARGAINING UNIT EMPLOYEES
EFFECTIVE OCTOBER 1, 1994 7,490,819 1,799,893 1,102,206 772,285 950,143 12,115,346
PLAN EQUITY,
December 31, 1993 8,918,490 3,854,617 3,289,677 2,148,518 1,294,418 19,505,720
---------- ---------- ---------- ---------- ---------- -----------
PLAN EQUITY,
December 31, 1994 $18,523,013 $6,220,097 $5,054,941 $3,479,570 $2,471,176 $35,748,797
=========== ========== ========== ========== ========== ===========
The accompanying notes are an integral part of this statement.
</TABLE>
<TABLE>
INDIANA GAS COMPANY, INC.
RETIREMENT SAVINGS PLAN
STATEMENT OF INCOME AND OTHER CHANGES IN PLAN EQUITY
FOR THE YEAR ENDED DECEMBER 31, 1993
Indiana Energy, Provident
Inc. Stable Mutual
Common Stock Value Equity Value Line Participants'
Fund A Fund B Fund C Fund D Loan Fund Total
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Employee contributions $ 719,498 $ 264,280 $ 325,701 $ 296,377 $ -- $ 1,605,856
Employer contributions 761,404 232,086 267,096 258,980 -- 1,519,566
Interest income 2,965 192,576 945 38,228 84,335 319,049
Dividend income 352,483 -- -- 8,636 -- 361,119
Unrealized appreciation of assets 853,151 -- 282,301 142,786 -- 1,278,238
Realized gain (loss) on
investments -- 44,914 23,225 (12,047) -- 56,092
Other income (expense), net 28 (9,978) 143 (9,151) -- (18,958)
---------- ---------- ---------- ---------- ---------- -----------
2,689,529 723,878 899,411 723,809 84,335 5,120,962
DEDUCTIONS:
Distribution of benefits
to participants 152,858 158,768 73,943 35,927 8,748 430,244
---------- ---------- ---------- ---------- ---------- -----------
2,536,671 565,110 825,468 687,882 75,587 4,690,718
TRANSFERS OF PARTICIPANTS'
BALANCES BETWEEN
SAVINGS PLANS (34,223) (9,844) (3,799) 3,105 (17,907) (62,668)
OTHER PLAN INTERFUND TRANSFERS 351,953 (212,144) (155,127) 15,318 -- --
LOAN REPAYMENTS 265,650 104,842 116,848 122,014 (609,354) --
LOANS ISSUED (304,009) (184,530) (183,646) (158,092) 830,277 --
---------- ---------- ---------- ---------- ---------- -----------
Net increase 2,816,042 263,434 599,744 670,227 278,603 4,628,050
PLAN EQUITY,
December 31, 1992 6,102,448 3,591,183 2,689,933 1,478,291 1,015,815 14,877,670
---------- ---------- ---------- ---------- ---------- -----------
PLAN EQUITY,
December 31, 1993 $8,918,490 $3,854,617 $3,289,677 $2,148,518 $1,294,418 $19,505,720
========== ========== ========== ========== ========== ===========
The accompanying notes are an integral part of this statement.
</TABLE>
INDIANA GAS COMPANY, INC.
RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. DESCRIPTION OF THE PLAN
a. General
Indiana Gas Company, Inc. (the Company) Retirement
Savings Plan (the Plan) is a defined contribution plan. The Plan
is administered by the Retirement Savings Plan Committee (the
Committee) appointed by the President of the Company. Further
details of the Plan are provided in the Summary Plan Description
which has been distributed to all plan participants.
Effective October 1, 1994, the assets of the Indiana
Gas Company, Inc. Retirement Savings Plan for Bargaining Unit
Employees were merged into the Indiana Gas Company, Inc.
Retirement Savings Plan. Participants' benefits and account
balances were not impacted as a result of the merger.
Participants have the same options and benefits under the
Retirement Savings Plan as they did under the Retirement Savings
Plan for Bargaining Unit Employees. The transfer of $12,115,346
has been reflected in the December 31, 1994, Statement of Income
and Other Changes in Plan Equity.
Effective July 1, 1995, T. Rowe Price (the trustee)
assumed trustee and recordkeeping responsibilities from Fifth
Third Bank. Plan assets, except for Fund A, were sold and
reinvested in four similar funds established by T. Rowe Price at
the participants' current investment allocation percentages.
Effective September 1, 1995, participants had four additional
funds to invest in and made elections through a phone system.
The four new investment options available on September 1 were the
Equity Index Fund, the Spectrum Growth Fund, an International
Stock Fund, and the New Horizons Fund. Participants can now make
contribution elections and investment transfers in 5% increments
versus the 10% limit previously required. Participant elections
and investment transfer decisions can be made daily.
b. Participation
Employees age twenty-one (21) or older become eligible
to participate in the Plan on January 1, April 1, July 1, or
October 1 (valuation dates), coincident with or following
completion of one (1) year of service. Each participant's
account is adjusted daily for contributions, withdrawals,
distributions, income earned, changes in the value of trust fund
assets and expenses directly related to investment transactions.
c. Contributions and Vesting
Plan participants may elect to contribute up to 15% of
their eligible compensation. All participants' contributions are
fully vested. Annually, the Company contributes an amount equal
to 2-1/2% of participants' eligible compensation. In addition,
for nonbargaining participants, the Company matches 100% of the
first 3% of eligible compensation contributed by nonbargaining
participants and 50% of nonbargaining participants' contributions
between 3% and 8% of their eligible compensation. For bargaining
participants, the Company matches 50% of the first 4% of eligible
compensation. Participants may also contribute any unused
flexible benefit dollars to the plan with the Company matching
this contribution at 50%.
Company contributions become fully vested after a
participant has completed five years of service. However, all
participants employed by the Company on July 1, 1988, were deemed
to have completed the years of service requirements regardless of
the number of years of service actually completed as of that
date. In addition, former employees of Terre Haute Gas
corporation and Richmond Gas Corporation, which were employed by
the Company in 1990, retain their years of credited service at
their respective companies prior to the acquisitions when
evaluating their eligibility and vested interest in the Plan.
Contributions are subject to maximum limitations as
defined in the Internal Revenue Code (the Code) and are invested
in the Indiana Energy, Inc. Common Stock Fund, Stable Value Fund,
T. Rowe Price Equity Income Fund, T. Rowe Price Balanced Fund, T.
Rowe Price International Fund, T. Rowe Price New Horizons Fund,
T. Rowe Price Equity Index Fund, Spectrum Growth Fund, as
directed by participants.
d. Federal Income Tax Effect to Participants
The Plan was established as a qualified plan under
Section 401(a) of the Code. This means that a participant is not
subject to Federal income taxes on amounts contributed to the
participant's account or earnings thereon, until such amounts are
distributed to the participant or to a beneficiary in the event
of the participant's death. Contributions to the participant's
account are subject to Federal employment (FICA) taxes.
If a participant receives a distribution from his/her
account prior to obtaining age 59-1/2, such distribution is taxed
as ordinary income and may be subject to an additional 10%
penalty tax unless one of the statutory exceptions to such
penalty tax applies.
e. Distributions
Upon termination, a participant has the option to
receive a lump sum distribution or periodic installments over a
period not to exceed 10 years. If a lump sum is received, the
participant may defer immediate taxation by rolling over the
amount into a qualified plan or an individual retirement account
(IRA). Effective January 1, 1993, the Unemployment Compensation
Amendments Act of 1992 requires income tax withholding at a rate
of 20% for any eligible rollover distribution that is not
directly transferred to another qualified plan or IRA. This
withholding requirement may not be waived by the participant
receiving the distribution. Distributions made to participants
who have reached age 70-1/2 are not subject to the 20%
withholding requirement.
f. Participant Loans
The Plan allows eligible participants to borrow up to
50% of the vested amount of their participant's account with a
minimum borrowing of $1,000. Each loan shall bear interest at a
rate determined by the plan committee and is secured by the
participant's remaining balance in his/her account. The term of
the loan is mutually agreed upon by the plan committee and the
participant. The loan repayment period shall not exceed 5 years,
except in instances where the loan proceeds were used to acquire
the principal residence of the participant.
A participant may have no more than one loan
outstanding at any point in time. Loan payments, both principal
and interest, shall be reapplied to the participant's account and
reinvested in the applicable fund based on the participant's
current election. At December 31, 1995 and 1994, there were 457
and 455 participant loans outstanding, respectively.
g. Plan Termination
While it has not expressed any intention to do so, the
Company has the right to terminate the Plan subject to the
provisions of the Employee Retirement Income Security Act of 1974
(ERISA). Upon partial or total termination of the Plan, the
participants' accounts shall become fully vested and non-
forfeitable.
h. Trustee Fees and Administrative Costs
Trustee fees and recordkeeping costs are paid by the
Company. Investment management costs are paid for by the Plan
and are included in other income (expense) in the accompanying
Statements of Income and Other Changes in Plan Equity.
2. INVESTMENT PROGRAM
Before July 1, 1995, participants could direct that
their contributions be invested in one or more of the following
funds:
Fund A - An equity fund, which invests principally in
shares of Indiana Energy, Inc. (IEI) common stock
issued and purchased in the open market. (Indiana
Energy, Inc. is the parent company of Indiana Gas
Company, Inc.)
Fund B - A fixed income fund, which invests principally
in guaranteed investment contracts.
Fund C - An equity investment fund, which invests
principally in common stock.
Fund D - A balanced fund, which invests principally in
a mix of fixed income securities and common stock.
After July 1, 1995, participants may direct that their
contributions be invested in one or more of the following T. Rowe
Price funds:
IEI Common Stock Fund - An equity fund which invests
principally in shares of Indiana Energy, Inc. (IEI)
common stock issued and purchased in the open market.
(Indiana Energy, Inc. is the parent company of
Indiana Gas Company, Inc.)
Stable Value Fund - A bank sponsored collective
investment fund, which invests primarily in a
portfolio of Guaranteed Investment Contracts (GIC's),
Bank Investment Contracts (BIC's) and Structured
Investment Contracts (SIC's).
T. Rowe Price Equity Income Fund - A mutual fund, which
most of the assets will be used to invest in common
stocks of established companies and the remainder in
foreign securities, convertible stocks and bonds.
T. Rowe Price Balanced Fund - A mutual fund, which
invests 60% in common stock of large established
companies and 40% in various fixed income securities.
T. Rowe Price International Stock Fund - A mutual fund,
which invests primarily in common stocks of
established, non-U.S. companies.
T. Rowe Price New Horizons Fund - A mutual fund, which
invests primarily in a diversified group of small,
emerging growth companies.
T. Rowe Price Equity Index Fund - A mutual fund, which
will invest in all 500 stocks composing the S&P 500.
T. Rowe Price Spectrum Growth Fund - A mutual fund,
which invests in a number of other T. Rowe Price
Mutual Funds.
The number of participants directing contributions in
each fund at December 31, 1995 and 1994, were as follows:
Number of
Participants
------------
1995 1994
Fund B (Stable Value) - 722
Fund C (Provident Mutual
Equity Fund) - 668
Fund D (Value Line Fund) - 603
Indiana Energy, Inc. Common Stock 1,102 1,156
T. Rowe Price-
Stable Value Fund 705 -
Equity Income Fund 729 -
Balanced Fund 622 -
International Stock Fund 122 -
New Horizons Fund 218 -
Equity Index Fund 170 -
Spectrum Growth Fund 125 -
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Basis of Accounting
Account records maintained by the Trustee are on the
cash basis. The accompanying financial statements have been
prepared on an accrual basis. Assets of the Plan are valued at
current market value.
b. Investments
Investments are stated at current market value (see
Schedule I). Investment transactions are reported on the trade
date.
The change in market value from the beginning of the
year to the date of sale for investments sold during the year is
reported separately in the Statement of Income and Other Changes
in Plan Equity as a realized gain (loss) on investments. The net
realized gain or loss on investments included in the plan equity
is as follows:
<TABLE>
Realized
Gain
Proceeds of Cost of (Loss) on
Sale Asset Investments
<S> <C> <C> <C>
IEI Common Stock Fund A $ 1,565,857 $ 1,321,648 $ 244,209
Stable Value Fund B 12,493,837 12,493,837 -
Provident Mutual Equity Fund C 6,362,986 5,533,066 829,920
Value Line Fund D 9,645,424 9,280,297 365,127
Stable Value Fund - - -
Equity Income Fund 619,713 595,841 46,072
Balanced Fund 784,469 738,397 23,872
International Stock Fund 46 46 -
New Horizons Fund 83,429 85,255 (1,826)
Equity Index Fund 345 343 2
Spectrum Growth Fund 64 64 -
----------- ----------- ----------
Total $31,556,170 $30,048,794 $1,507,376
=========== =========== ==========
</TABLE>
On July 30, 1993, Indiana Energy, Inc. declared a
three-for-two stock split for shareholders of record on
September 17, 1993. The shares were issued on October 1, 1993.
The number of shares disclosed in the Schedule of Assets Held for
Investment Purposes reflect this stock split.
The current market value of individual assets that
represent 5% or more of the Plan's equity as of December 31, 1995
and 1994 are as follows:
1995 1994
Indiana Energy, Inc.
common stock $22,771,495 $17,922,207
T. Rowe Price-
Equity Income Fund 7,404,291 -
Stable Value Fund 6,733,899
Balanced Fund 4,554,734 -
G.I.C. Investment Fund
for Employee Benefit Plans - 6,053,450
Provident Mutual Newbold
Equity Fund - 4,854,979
c. Reclassifications
Certain reclassifications have been made in the
Company's financial statements of prior years to confirm to the
current year presentation. The descriptions of the financial
statements comply with the requirements set forth by Form 11(K)
under the Securities and Exchange Commission.
4. UNREALIZED APPRECIATION OF ASSETS
<TABLE>
The unrealized appreciation of assets included in the Plan equity is as follows:
T. Rowe Price
-----------------------------------------------------
IEI Provident Inter-
Common Stable Mutual Value Stable Equity national New Equity Spectrum
Stock Value Equity Line Value Income Balanced Stock Horizons Index Growth
Fund A Fund B Fund C Fund D Fund Fund Fund Fund Fund Fund Fund Total
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Balance as of
December 31,
1993 $1,870,206 $ - $379,773 $171,751 $ - $ - $ - $ - $ - $ - $ - $2,421,730
Transfer from
the Retirement
Savings Plan
for Bargaining
Unit Employees
as of October 1,
1994 2,065,317 - 166,756 59,465 - - - - - - - 2,291,538
Net change for
1994 (943,445) - (15,397) (273,804) - - - - - - - (1,232,646)
---------- -------- -------- -------- -------- -------- -------- ------ -------- ------- ------- ----------
Balance as of
December 31,
1994 2,992,078 - 531,132 (42,588) - - - - - - - 3,480,622
Net change for
1995 2,852,422 - (531,132) 42,588 - 659,041 256,677 4,265 (45,302) 14,128 (5,973) 3,246,714
---------- -------- -------- -------- -------- -------- -------- ------ -------- ------- ------- ----------
Balance as of
December 31,
1995 $5,844,500 $ - $ - $ - $ - $659,041 $256,677 $4,265 $(45,302) $14,128 $(5,973) $6,727,336
========== ======== ======== ======== ======== ======== ======== ====== ======== ======= ======= ==========
</TABLE>
5. TAX STATUS
The Internal Revenue Service issued a determination
letter dated April 19, 1996, stating that the Plan was qualified
in accordance with applicable plan design requirements as of that
date. In the opinion of the Plan Committee, the Plan is
currently designed and continues to operate in a manner that
qualifies it under Internal Revenue Code (IRC) Section 401(a)
and, therefore, is exempt from income taxes under the provisions
of IRC Section 501(a). Accordingly, no provision for Federal
income taxes has been made.
6. REPORTABLE TRANSACTIONS
"Reportable Transactions" of the Plan are shown on
Schedule II. There were no party-in-interest transactions in
either 1995 or 1994.
SCHEDULE I
INDIANA GAS COMPANY, INC.
EIN 35-0793669
RETIREMENT SAVINGS PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1995
Current
Shares/ Average Market
Description Par Value Cost Value
INVESTMENTS:
Indiana Energy, Inc.
Common Stock 953,449 $16,919,098 $22,771,495
Stable Value Fund 6,733,899 6,733,899 6,733,899
T. Rowe Price-
Equity Income Fund 370,030 6,745,250 7,404,291
Balanced Fund 344,534 4,298,057 4,554,734
International Stock Fund 36,021 436,269 440,534
New Horizons Fund 47,897 1,027,199 981,897
Equity Index Fund 26,932 449,364 463,492
Spectrum Growth Fund 26,485 363,259 357,286
PARTICIPANTS' LOAN FUND, interest
ranging from 7.0% to 11.5% 2,713,615 2,713,615
----------- -----------
$39,686,010 $46,421,243
=========== ===========
<TABLE>
SCHEDULE II
INDIANA GAS COMPANY, INC.
EIN 35-0793669
RETIREMENT SAVINGS PLAN
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
Current
Value
of Asset on
Number of Purchase Selling Cost of Transaction Net
Party Involved Description of Asset Transactions Price Price Asset Date Gain
<S> <C> <C> <C> <C> <C> <C> <C>
PURCHASES:
Fifth-Third Bank-
Fund B Fidelity Inst. Cash Portfolio 4 $6,000,000 $ - $6,000,000 $6,000,000 $ -
Fund B The G.I.C. Investment Fund for Employee
Benefit Plans 3 440,387 - 440,387 440,387 -
Fund C Provident Mutual Fund 8 445,000 - 445,000 445,000 -
Fund D Fifth Third Banksafe Trust 3 4,130,534 - 4,130,534 4,130,534 -
T. Rowe Price-
Indiana Energy, Inc. * 9,047,884 - 9,047,884 9,047,884 -
Stable Value Fund * 7,370,115 - 7,370,115 7,370,115 -
Equity Income Fund * 7,361,499 - 7,361,499 7,361,499 -
Balanced Fund * 4,772,854 - 4,772,854 4,772,854 -
International Stock Fund * 436,269 - 436,269 436,269 -
New Horizons Fund * 1,105,548 - 1,105,548 1,105,548 -
Equity Index Fund * 449,437 - 449,437 449,437 -
Spectrum Growth Fund * 363,258 - 363,258 363,258 -
SALES:
Fifth Third Bank-
Fund B Fidelity Inst. Cash Portfolio 2 - 6,000,000 6,000,000 6,000,000 -
Fund B The G.I.C. Investment Fund for Employee
Benefit Plans 3 - 6,493,837 6,493,837 6,493,837 -
Fund C Provident Mutual Fund 1 - 6,081,899 4,720,847 5,251,979 829,920
Fund D Fifth Third Banksafe Trust 4 - 4,331,177 4,331,177 4,331,177 -
T. Rowe Price-
Indiana Energy, Inc. * - 1,286,081 1,044,350 1,286,081 241,732
Stable Value Fund * - 636,488 636,488 636,488 -
Equity Income Fund * - 662,239 619,050 662,239 43,189
Balanced Fund * - 498,676 477,574 498,676 21,102
New Horizons Fund * - 76,523 78,410 76,523 (1,887)
Equity Index Fund * - 76 75 76 1
* Information not available from trustee
</TABLE>
