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 Year Ended December 31, 1997
Commission File Number 1-3939
Kerr-McGee Corporation Savings Investment Plan
(full title of the Plan)
Kerr-McGee Corporation
Kerr-McGee Center
Oklahoma City, Oklahoma 73102
(Name of the issuer of the securities held pursuant to
the Plan and address of its principal executive office)
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Kerr-McGee Corporation Benefits Committee:
We have audited the accompanying Statement of Net Assets Available for
Plan Benefits of the KERR-McGEE CORPORATION SAVINGS INVESTMENT PLAN (the Plan)
as of December 31, 1997 and 1996, and the related Statement of Changes in Net
Assets Available for Plan Benefits for the year ended December 31, 1997. These
financial statements and the schedules referred to below are the responsibility
of the Plan's management. 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
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 plan benefits as
of December 31, 1997 and 1996, and the changes in its net assets available for
plan benefits for the year ended December 31, 1997, 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 Schedule of Assets
Held for Investment Purposes as of December 31, 1997, and the supplemental
Schedule of Reportable Transactions for the year ended December 31, 1997, are
presented for purposes 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 fund information in the
Statement of Net Assets Available for Plan Benefits and Statement of Changes in
Net Assets Available for Plan Benefits is presented for purposes of additional
analysis rather than to present the net assets available for plan benefits and
the changes in net assets available for plan benefits of each fund. 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)
ARTHUR ANDERSEN LLP
Oklahoma City, Oklahoma,
June 15, 1998
<PAGE>
<TABLE>
KERR-MCGEE CORPORATION SAVINGS INVESTMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
December 31, 1997
(Thousands of dollars)
<CAPTION>
Kerr-McGee Interest Equity Equity
Stock Bond Income Growth Income Balanced
Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at fair value:
Common stock of Kerr-McGee Corporation
(993,383 shares, cost $46,055) $62,894 $ $ $ $ $
Units in Putnam Income Fund
(271,176 units, cost $1,906) 1,928
Units in Putnam Stable Value Fund
(26,758,363 units, cost $26,758) 26,758
Units in Putnam Vista Fund
(2,501,916 units, cost $28,656) 29,698
Units in Putnam Growth and Income Fund
(2,056,944 units, cost $41,340) 40,193
Units in Putnam Asset Allocation Balanced Fund
(460,210 units, cost $5,324) 5,122
Units in Putnam International Growth Fund
(315,683 units, cost $5,396)
Units in Putnam S&P 500 Index Fund
(198,652 units, cost $4,314)
Units in Putnam Asset Allocation Growth Fund
(137,656 units, cost $1,805)
Units in Putnam Asset Alloc. Conservative Fund
(42,160 units, cost $439)
Loans to participants
Short-term investments 17
Total Investments 62,911 1,928 26,758 29,698 40,193 5,122
Dividends receivable 449
Receivable from investments sale 30
Other assets 6
Total Assets 63,396 1,928 26,758 29,698 40,193 5,122
LIABILITIES:
Miscellaneous payables 19
NET ASSETS AVAILABLE FOR PLAN BENEFITS $63,377 $1,928 $26,758 $29,698 $40,193 $5,122
The accompanying notes are an integral part of this statement.
</TABLE>
<PAGE>
<TABLE>
(Continued)
KERR-MCGEE CORPORATION SAVINGS INVESTMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
December 31, 1997
(Thousands of dollars)
<CAPTION>
Growth Conservative
International Index Portfolio Portfolio Loan
Fund Fund Fund Fund Account Total
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at fair value:
Common stock of Kerr-McGee Corporation
(993,383 shares, cost $46,055) $ $ $ $ $ $ 62,894
Units in Putnam Income Fund
(271,176 units, cost $1,906) 1,928
Units in Putnam Stable Value Fund
(26,758,363 units, cost $26,758) 26,758
Units in Putnam Vista Fund
(2,501,916 units, cost $28,656) 29,698
Units in Putnam Growth and Income Fund
(2,056,944 units, cost $41,340) 40,193
Units in Putnam Asset Allocation Balanced Fund
(460,210 units, cost $5,324) 5,122
Units in Putnam International Growth Fund
(315,683 units, cost $5,396) 5,262 5,262
Units in Putnam S&P 500 Index Fund
(198,652 units, cost $4,314) 4,484 4,484
Units in Putnam Asset Allocation Growth Fund
(137,656 units, cost $1,805) 1,697 1,697
Units in Putnam Asset Alloc. Conservative Fund
(42,160 units, cost $439) 420 420
Loans to participants 10,654 10,654
Short-term investments 17
Total Investments 5,262 4,484 1,697 420 10,654 189,127
Dividends receivable 449
Receivable from investments sale 30
Other assets 6
Total Assets 5,262 4,484 1,697 420 10,654 189,612
LIABILITIES:
Miscellaneous payables 19
NET ASSETS AVAILABLE FOR PLAN BENEFITS $5,262 $4,484 $1,697 $420 $10,654 $189,593
The accompanying notes are an integral part of this statement.
</TABLE>
<PAGE>
<TABLE>
KERR-MCGEE CORPORATION SAVINGS INVESTMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
December 31, 1996
(Thousands of dollars)
<CAPTION>
Kerr-McGee Interest Equity Equity Inter-
Stock Bond Income Growth Income Balanced national Loan
Fund Fund Fund Fund Fund Fund Fund Account Total
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at fair value:
Common stock of Kerr-McGee Corporation
(1,025,388 shares, cost $36,993) $73,828 $ $ $ $ $ $ $ $ 73,828
Units in Dreyfus A Bonds Plus Fund
(62,409 units, cost $901) 899 899
Units in Capital Preservation Fund
(30,538,975 units, cost $30,539) 30,539 30,539
Units in Fidelity Retirement Growth Fund
(1,526,186 units, cost $26,512) 26,388 26,388
Units in Fidelity Equity Income Fund
(747,486 units, cost $24,983) 32,015 32,015
Units in MFS Total Return A Fund
(131,163 units, cost $1,907) 1,940 1,940
Units in Templeton Foreign Fund
(307,727 units, cost $2,975) 3,188 3,188
Loans to participants 10,090 10,090
Short-term investments 1,425 2 2 1,429
Total Investments 75,253 899 30,541 26,390 32,015 1,940 3,188 10,090 180,316
Dividends receivable 420 420
Receivable from investments sale 51 50 31 68 111 57 1 369
Other assets 14 14
Total Assets 75,738 949 30,572 26,458 32,126 1,997 3,189 10,090 181,119
LIABILITIES:
Miscellaneous payables 54 12 35 8 20 1 130
NET ASSETS AVAILABLE FOR PLAN BENEFITS $75,684 $937 $30,537 $26,450 $32,106 $1,997 $3,188 $10,090 $180,989
The accompanying notes are an integral part of this statement.
</TABLE>
<PAGE>
<TABLE>
KERR-MCGEE CORPORATION SAVINGS INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
For the Year Ended December 31, 1997
(Thousands of dollars)
<CAPTION>
Nonparticipant- Participant-
Directed Directed
--------------- ---------------------------------------------------------------
Kerr-McGee Kerr-McGee Interest Equity Equity
Stock Stock Bond Income Growth Income Balanced
Fund Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends $ 616 $ 1,290 $ 75 $ $ 2,208 $ 5,496 $ 441
Interest 222 11 1,773 101 126 35
Net appreciation (depreciation) of investments (2,734) (5,725) 19 3,069 2,357 (33)
(2,118) (4,213) 105 1,773 5,378 7,979 443
Employee contributions 3,195 267 1,623 2,502 3,099 1,184
Total additions (reductions) (2,118) (1,018) 372 3,396 7,880 11,078 1,627
Distributions to terminating and withdrawing
participants 2,128 4,455 162 3,953 2,245 2,642 333
Loans to participants, net of repayments 483 (32) 443 374 427 (107)
Transfers to (from) to other funds 2,105 (749) 2,779 2,013 (78) (1,724)
Total deductions (additions) 2,128 7,043 (619) 7,175 4,632 2,991 (1,498)
Increase (decrease) in net assets (4,246) (8,061) 991 (3,779) 3,248 8,087 3,125
Net assets available for plan benefits:
Beginning of year 27,470 48,214 937 30,537 26,450 32,106 1,997
End of year $23,224 $40,153 $1,928 $26,758 $29,698 $40,193 $5,122
The accompanying notes are an integral part of this statement.
</TABLE>
<PAGE>
<TABLE>
(Continued)
KERR-MCGEE CORPORATION SAVINGS INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
For the Year Ended December 31, 1997
(Thousands of dollars)
<CAPTION>
Participant-
Directed
---------------------------------------------------------------
Inter- Growth Conservative
national Index Portfolio Portfolio Loan
Fund Fund Fund Fund Account Total
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends $ 307 $ 1 $ 121 $ 26 $ $ 10,581
Interest 36 53 32 5 2,394
Net appreciation (depreciation) of investments 172 160 (119) (23) (2,857)
515 214 34 8 10,118
Employee contribution 981 1,484 739 146 15,220
Total additions (reductions) 1,496 1,698 773 154 25,338
Distributions to terminating and withdrawing
participants 222 54 27 4 509 16,734
Loans to participants, net of repayments (100) (252) (155) (8) (1,073) -
Transfers to (from) other funds (700) (2,588) (796) (262) -
Total deductions (additions) (578) (2,786) (924) (266) (564) 16,734
Increase (decrease) in net assets 2,074 4,484 1,697 420 564 8,604
Net assets available for plan benefits:
Beginning of year 3,188 10,090 180,989
End of year $5,262 $4,484 $1,697 $420 $10,654 $189,593
</TABLE>
<PAGE>
KERR-McGEE CORPORATION SAVINGS INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 AND 1996
(1) DESCRIPTION OF THE PLAN
General -
The Kerr-McGee Corporation Savings Investment Plan (the Plan) is a
defined contribution plan in which eligible employees of Kerr-McGee
Corporation and its affiliated companies (collectively referred to as
the Company) may participate. The Plan and the trust established
thereunder (the Trust) were executed on September 26, 1975, and became
fully effective on January 1, 1976.
The Plan allows participants to defer taxable earnings through
contributions to the Plan as provided for under Section 401(k) of the
Internal Revenue Code (the Code), and to borrow from their accounts
within the Plan.
All employer matching contributions are made to the Employee Stock
Ownership Plan (ESOP), which was established in September 1989. All
matching contributions are invested in Kerr-McGee Corporation common
stock. The ESOP is not part of the Plan; therefore, the employer
contributions to the ESOP and the ESOP assets and earnings are not
included in the Plan's accompanying financial statements. The maximum
Company matching contribution is 6% of salary, and the maximum employee
contribution is 15% of salary. Employees are allowed to participate in
the Plan from their initial date of employment. Company contributions
vest on the basis of 20% for each completed year of vesting service.
Vesting service is completed years of Company service reduced in certain
limited situations.
The Plan is administered by the Kerr-McGee Corporation Benefits
Committee (the Committee), which is appointed by the Board of Directors
of the Company. Accounting and administration for the Plan are provided
by the Company at no cost to the Plan. In addition, all expenses of the
Trust are borne by the Company.
The participants' contributions to the Plan and earnings thereon are
fully vested at all times. The participants' share of the Company
contributions and earnings thereon vest on the basis of 20% for each
completed year of service. Company contributions are fully vested in the
event of retirement, death or disability. Forfeitures may be used to
reduce Company contributions or to pay expenses of administration.
The Plan or any portion thereof may be discontinued by the Board of
Directors of the Company. In the event of such discontinuance or other
termination of the Plan, each participant shall be fully vested.
The following is a description of the investment options available under
the Plan at December 31, 1997 :
Kerr-McGee Stock Fund - common stock of the Company.
Bond Fund - primarily high quality bonds of corporations.
Interest Income Fund - managed income portfolio consisting of a
commingled pool of investment contracts issued by insurance
companies and other approved institutions.
Equity Growth Fund - shares of stock of companies that are
believed to have the potential for strong capital growth.
Equity Income Fund - stock, bonds and convertible debentures of
companies that have had stable profit levels and a record of high
dividends.
Balanced Fund - equities, bonds, convertible bonds and cash or
cash equivalents.
International Fund - primarily stocks and bonds of companies and
governments outside of the United States.
Index Fund - mirrors the performance and composition of Standard
& Poor's 500 Composite Index through investments in
common stocks.
Growth Portfolio - asset allocation for capital appreciation
typically consisting of 80% domestic and international stocks and
20% bonds and money market investments.
Conservative Portfolio - asset allocation for capital
preservation typically consisting of 35% domestic and
international stocks and 65% bonds and money market investments.
The Kerr-McGee Stock Fund is the only fund consisting of both
participant-directed contributions and nonparticipant-directed company
matching contributions as follows:
Participant- Company Total
(Dollars in thousands) Directed Matching Fund
1997
Market Value $ 42,564 $ 20,330 $ 62,894
Shares 672,273 321,110 993,383
1996
Market Value $ 49,202 $ 24,626 $ 73,828
Shares 683,364 342,024 1,025,388
SMART and CAPITAL Savings Programs -
All participants participate in the Plan under the SMART and CAPITAL
Savings Programs. Participants may direct their savings, up to a maximum
of 15% of salary, to be invested in 1% increments among one or more of
the funds provided for under the Plan. An unlimited number of transfers
are allowed between funds.
Contributions to the SMART Savings Program are from a participant's
salary, before income taxes. The participant's income taxes on the
pre-tax contributions are deferred until the contributions are
distributed after termination, at the time of hardship withdrawal, or
under minimum distribution rules at age 70 1/2. The annual SMART Savings
Program contribution limitation is subject to annual adjustments for
inflation and was $9,500 for 1997 in accordance with the Code.
Participant contributions in excess of this amount are considered to be
contributions to the CAPITAL Savings Program.
Contributions to the CAPITAL Savings Program are from a participant's
salary, after income taxes. If a participant has authorized less than
15% of their salary to be contributed to the SMART Savings Program, they
may contribute the remaining whole percentages up to 15% to the CAPITAL
Savings Program. Participant contributions may be invested in the same
proportions and the same funds as outlined above for the SMART Savings
Program. The maximum contributions allowed to each program may be
limited for highly compensated employees, depending upon the balance of
contributions at all levels.
The Company matches employees' contributions to the Plan up to a maximum
of 6% of their salary. The Company contributions are made to the ESOP
and invested in Kerr-McGee Corporation common stock.
Participants may borrow from the Plan against their contributions to the
SMART and CAPITAL Savings Programs and against their vested interest in
Company contributions. By administrative rule established by the
Committee, new loans to participants bear interest at a fixed rate equal
to the national average interest rate for five-year certificates of
deposit (as published in The Wall Street Journal), plus 1.5%. Such
interest is credited to the participant's accounts in the Plan when
repaid. The average interest rate for new loans, which is adjusted
quarterly, was 7% for 1997. The minimum loan amount, determined
periodically by the Committee, is currently $1,000. The maximum amount
of all loans to a participant under the Plan and any other plans of any
employer may not exceed the lesser of (a) $50,000, reduced by an amount
equal to the difference between (i) the participant's highest loan
balance under the Plan during the one-year period ending on the day
before the date on which such loan is made and (ii) the outstanding loan
balance of the participant under the Plan on the date on which such loan
was made or (b) one-half the current value of the participant's vested
interest in their accounts. Loans must be repaid within five years from
the initial date of the loan, with certain special provisions available
for military reservists called to active duty. In the event of a
participant's termination of employment and subsequent default on the
loan, any outstanding balance will be considered a withdrawal and will
be taxable to the participant as prescribed by the Code.
(2) SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements have been prepared on the accrual
basis of accounting; however, distributions to terminating and
withdrawing participants are recorded when paid. Investments are stated
at fair value based on quoted market prices.
(3) RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
Amounts allocated to participants for withdrawals and distributions that
have been processed prior to December 31, but not yet paid as of that
date are recorded on the Department of Labor's Annual Return/Report of
Employee Benefit Plan (Form 5500) as payables to participants. The
following is a reconciliation of net assets available for plan benefits
as reported in the accompanying financial statements to the net assets
available for plan benefits reported in the Form 5500:
December 31,
(Thousands of dollars) 1997 1996
-------- -------
Net assets available for benefits per
the financial statements $189,593 $180,989
Amounts allocated to withdrawing
participants but not yet paid - (309)
-------- --------
Net assets available for benefits
per Form 5500 $189,593 $180,680
======== ========
The following is a reconciliation of distributions to terminating and
withdrawing participants during the year ended December 31, 1997, as
reported in the accompanying financial statements to the Form 5500:
For the Year Ended
(Thousands of dollars) December 31, 1997
Distributions to terminating and withdrawing
participants per the financial statements $16,734
Amounts allocated to withdrawing participants at
December 31, 1996, and paid in January 1997 (309)
-------
Distributions to terminating and withdrawing
participants per Form 5500 $16,425
=======
(4) TAX STATUS
The Plan obtained its latest determination letter dated April 29, 1996,
in which the Internal Revenue Service stated that the Plan and Trust
qualify under Section 401(a) and are entitled to exemption from Federal
income taxes under Section 501(a) of the Code.
Participants on whose behalf Company contributions were made are not
taxed on the amounts contributed by the Company or on any income earned
thereon until the receipt of a distribution pursuant to the terms of the
Plan. The taxation of income earned on assets of the Plan attributable
to participants' contributions to the Plan as well as contributions to
the SMART Savings Program is also deferred until distributed. Federal
income taxes applicable to participants or their beneficiaries upon
distribution are prescribed by the Code.
(5) LOANS TO PARTICIPANTS
Loan activity during 1997 and 1996 is set forth below:
(Thousands of dollars) 1997 1996
------- ------
Balance at beginning of year $10,090 $10,432
New loans 5,807 5,485
Principal repayments (4,734) (4,997)
Loans included as distributions
to terminated participants (509) (830)
------- -------
Balance at end of year $10,654 $10,090
======= =======
Interest income applicable to these loans during 1997 was $666,000 which
is reported as interest income in the funds to which the participants
are currently contributing.
(6) CONTRIBUTIONS
Contributions to the Plan during 1997 totaled $15,220,000. This total
amount represents contributions made by employees to the SMART and
CAPITAL Savings Programs.
The Company's matching contributions to the ESOP during 1997 totaled
$9,451,000. Common stock of the Company held by the ESOP and allocated
to participant's accounts totaled 1,342,843 shares with a market value
of $85,015,000 at December 31, 1997.
(7) DISTRIBUTIONS TO PARTICIPANTS
Distributions to participants are recorded at the approximate market
value as of the date of distribution. Terminating participants with more
than $3,500 in the Plan may defer distribution until age 70 1/2.
Investments relating to these participants remain in the Trust until the
terminated participant requests distribution. Participants who defer
distribution continue to share in earnings and losses of the Plan.
(8) SUBSEQUENT EVENTS
In June, 1998, the Company sold its Galatia coal mine. The sale of the
Jacobs Ranch mine is expected to be completed early in the third
quarter. The company also intends to dispose of the electrolytic and
forest products operations of its chemicals business. The effect of the
disposals on the net assets of the Plan is not currently known.
<PAGE>
<TABLE>
KERR-McGEE CORPORATION SAVINGS INVESTMENT PLAN
LINE 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
(Employer Identification Number 73-0311467)
(Plan Number 007)
DECEMBER 31, 1997
(Thousands of dollars)
<CAPTION>
(b) (c) (e)
Identity of issue, borrower, Description of investment including maturity date, (d) Current
(a)* lessor or similar party rate of interest, collateral, par or maturity value Cost Value
---- ---------------------------- ----------------------------------------------------- ------- -------
<S> <C> <C> <C> <C>
* Kerr-McGee Corporation Common Stock - 993,383 shares $46,055 $62,894
* Putnam Investments Putnam Income Fund - 271,176 units 1,906 1,928
* Putnam Investments Putnam Stable Value Fund - 26,758,363 units 26,758 26,758
* Putnam Investments Putnam Vista Fund - 2,501,916 units 28,656 29,698
* Putnam Investments Putnam Growth & Income Fund - 2,056,944 units 41,340 40,193
* Putnam Investments Putnam Asset Allocation Balanced Fund - 460,210 units 5,324 5,122
* Putnam Investments Putnam International Growth Fund - 315,683 units 5,396 5,262
* Putnam Investments Putnam S&P 500 Index Fund - 198,652 units 4,314 4,484
* Putnam Investments Putnam Asset Allocation Growth Fund - 137,656 units 1,805 1,697
* Putnam Investments Putnam Asset Allocation Conservative Fund - 42,160 units 439 420
* Various Participants Participant loans - interest rates from 6.1% to 8.1%,
maturity dates from January 1998 to December 2002 10,654 10,654
* Putnam Investments Collective Short-term Investment Fund 17 17
*Party-in-interest
</TABLE>
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<TABLE>
KERR-McGEE CORPORATION SAVINGS INVESTMENT PLAN
LINE 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
(Employer Identification Number 73-0311467)
(Plan Number 007)
FOR THE YEAR ENDED DECEMBER 31, 1997
(Thousands of dollars)
<CAPTION>
(h)
(f) Current
Expense value (i)
incurred of asset Net
(a) No. of (c) (d) (e) with (g) on trans- gain
Identity of party (b) trans- Purchase Selling Lease trans- Cost of action or
involved Description of asset actions price price rental action asset date loss
- -------------------------- -------------------- ------- --------- ------- ------ -------- ------- --------- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
The Bank of New York Collective Short-Term
Investment Fund 70 $10,258 $ - - - $10,258 $10,258 N/A
Kerr-McGee Corporation Common Stock 162 10,939 - - - 10,939 10,939 N/A
LaSalle National Trust, Capital Preservation
N.A. Fund 30 3,083 - - - 3,083 3,083 N/A
Fidelity Management Trust Fidelity Retirement
Company Growth Fund 28 1,316 - - - 1,316 1,316 N/A
Fidelity Management Trust Fidelity Equity
Company Income Fund 42 2,991 - - - 2,991 2,991 N/A
Putnam Investments Putnam Vista Fund 187 33,421 - - - 33,421 33,421 N/A
Putnam Investments Putnam Growth &
Income Fund 202 48,279 - - - 48,279 48,279 N/A
Putnam Investments Putnam Stable Value
Fund 243 32,349 - - - 32,349 32,349 N/A
The Bank of New York Collective Short-Term
Investment Fund 53 - 11,686 - - 11,686 11,686 -
Kerr-McGee Corporation Common Stock 236 - 12,136 - - 7,094 12,136 5,042
LaSalle National Trust, Capital Preservation
N.A. Fund 76 - 16,690 - - 16,690 16,690 -
Fidelity Management Trust Fidelity Retirement
Company Growth Fund 74 - 29,543 - - 27,829 29,543 1,714
Fidelity Management Trust Fidelity Equity
Company Income Fund 62 - 38,319 - - 27,974 38,319 10,345
Putnam Investments Putnam Vista Fund 201 - 2,656 - - 2,448 2,656 208
Putnam Investments Putnam Growth &
Income Fund 209 - 3,990 - - 3,773 3,990 217
Putnam Investments Putnam Stable Value
Fund 220 - 6,134 - - 6,134 6,134 -
</TABLE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Kerr-McGee Corporation Benefits Committee has duly caused this annual report to
be signed by the undersigned thereunto duly authorized.
KERR-McGEE CORPORATION SAVINGS INVESTMENT PLAN
By (JOHN C. LINEHAN)
John C. Linehan
Chairman of the Kerr-McGee Corporation
Benefits Committee
Date: June 29, 1998
EXHIBIT
Consent of Independent Public Accountants
As independent public accountants, we hereby consent to the
incorporation of our report dated June 15, 1998, included in the Kerr-McGee
Corporation Savings Investment Plan 1997 annual report in this Form 11-K, into
the Company's previously filed Form S-8 File No. 333-28235.
(ARTHUR ANDERSEN LLP)
ARTHUR ANDERSEN LLP
Oklahoma City, Oklahoma
June 29, 1998
