SEC File No 33-18130
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549-1004
FORM 11-K
ANNUAL REPORT
Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
[Fee Required]
For the Fiscal Year Ended January 31, 1996
EMPLOYEES SAVINGS PLAN OF
MOBIL OIL CORPORATION
(Full title of the plan)
MOBIL CORPORATION
3225 Gallows Road, Fairfax, Virginia
22037-0001
Telephone: (703) 846-3000
(Name of issuer of the securities held pursuant to the plan and
the address of its principal executive office)
13-2850309
(IRS Employer Identification No.)
<PAGE>
EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
FORM 11-K
FOR THE FISCAL YEAR ENDED JANUARY 31, 1996
TABLE OF CONTENTS
Page
Report of Ernst & Young LLP, Independent Auditors............... 1
Statements of Net Assets Available for Benefits................. 2
Statements of Changes in Net Assets Available for Benefits...... 3
Notes to Plan Financial Statements.............................. 4
Supplemental Information:
Schedule of Assets Held for Investment Purposes............... 13
Schedule of Reportable Transactions........................... 15
Signature....................................................... 16
Exhibit Index................................................... 17
Exhibit 23 - Consent of Ernst & Young LLP, Independent Auditors. 18
A schedule of party-in-interest transactions has not been presented because
there were no such prohibited transactions.
<PAGE>
REPORT OF INDEPENDENT AUDITORS
Board of Directors
MOBIL OIL CORPORATION
We have audited the accompanying statements of net assets available for benefits
of the Employees Savings Plan of Mobil Oil Corporation (the Plan) as of January
31, 1995 and 1996, and the related statements of changes in net assets available
for benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan at
January 31, 1995 and 1996, and the changes in its net assets available for
benefits for the years then ended, in conformity with generally accepted
accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental schedules
of assets held for investment purposes as of January 31, 1996 and reportable
transactions for the year ended January 31, 1996, are presented for purposes of
complying with the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974, and are
not a required part of the basic financial statements. The supplemental
schedules have been subjected to the auditing procedures applied in our audits
of the basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements taken as a
whole.
/s/ ERNST & YOUNG LLP
Fairfax, Virginia Ernst & Young LLP
April 5, 1996
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EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
At January 31,
1995 1996
(000's) (000's)
Investments, at current value (Note 7)............... $4,130,643 $4,881,530
Employer-corporation contribution receivable (Note 3) 163,609 170,393
Dividends and interest receivable.................... 24,297 23,527
Contributions and loan principal receivable.......... 14,558 13,887
Cash................................................. 9,585 9,051
---------- ----------
$4,342,692 $5,098,388
Less:
Accrued interest payable (Note 3).................. 23,598 21,546
Long-term debt (Note 3)............................ 628,300 577,700
---------- ----------
651,898 599,246
Net assets available for benefits at end of year..... $3,690,794 $4,499,142
========== ==========
See accompanying notes
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EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Years Ended January 31,
1995 1996
(000's) (000's)
Contributions:
Savings Account (Notes 3 and 5)
Employee contributions........................... $ 43,094 $ 39,630
Employer-corporation contributions............... 71,517 56,752
401(k) Account (Note 5)
Employee contributions........................... 60,157 61,474
Employer-corporation contributions............... 23,261 21,843
---------- ----------
Total contributions.............................. 198,029 179,699
---------- ----------
Net investment income:
Dividend income
Mobil Common Stock............................... 63,841 67,236
Mobil ESOP Convertible Preferred Stock (Note 3).. 57,651 55,930
Interest Income.................................... 28,951 55,973
Realized and unrealized gains and losses on
investments (Note 8)............................. 174,356 883,520
Interest expense on long-term debt (Note 3)........ (57,979) (54,088)
---------- ----------
Net investment income............................ 266,820 1,008,571
---------- ----------
Transfers in (Note 5)................................ 3,322 23,987
Distributions to participants for withdrawals (Note 5) (268,829) (403,909)
---------- ----------
Net increase in net assets available for benefits. 199,342 808,348
Net assets available for benefits:
Beginning of year................................... 3,491,452 3,690,794
---------- ----------
End of year......................................... $3,690,794 $4,499,142
========== ==========
See accompanying notes
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EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
NOTES TO PLAN FINANCIAL STATEMENTS
YEAR ENDED JANUARY 31, 1996
Note 1. Description of the Plan
Eligibility - Regular employees of Mobil Oil Corporation and its participating
affiliates (Mobil) generally become eligible to participate in the Employees
Savings Plan of Mobil Oil Corporation (the Plan) on the first of the month after
completion of one year of service.
Contributions - The Plan was composed of three parts prior to May 2, 1994:
Part A - Employees could make after-tax contributions up to 10% of their base
pay (plus certain make-up contributions) to Part A of the Plan. Prior to
February 1, 1990, Mobil also contributed 4% of base pay to Part A (5% for
employees with 20 years of accredited service who were on the payroll prior to
January 1, 1969). Both employee and Mobil contributions were subject to tax law
limitations.
Part B - Employees could make pre-tax contributions up to 15% of their eligible
compensation, subject to certain tax law limitations. On February 1, 1990, Mobil
began to contribute 2% (3% for pre-January 1, 1969 employees) of the employees'
eligible pay. Employees could elect to receive a portion or all of this Mobil
contribution in cash. Total employee and Mobil contributions to Part B were
limited to 15% of eligible compensation, subject to certain tax law limitations.
Part B was the 401(k) portion of the Plan.
Part C - Beginning February 1, 1990, Mobil began to contribute sufficient funds
to provide an allocation of Mobil's Series B ESOP Convertible Preferred Stock
(Mobil ESOP Convertible Preferred Stock) equal to 4% of participants' base pay
to Part C of the Plan, which was the Employee Stock Ownership portion of the
Plan (ESOP).
Effective May 2, 1994, the Plan was restructured into the following two parts:
Savings Account - Formerly known as Parts A and C. Employees can make after-tax
contributions to the Savings Account of the Plan, subject to certain tax law
limitations. Effective February 1, 1994, the maximum permitted employee
contribution to the Savings Account was increased from 10% to 15% of base pay
(plus certain make-up contributions). Mobil continues to contribute sufficient
funds to provide an allocation of Mobil ESOP Convertible Preferred Stock to the
ESOP portion of the Savings Account equal to 4% of participants' base pay, plus
additional Mobil ESOP Convertible Preferred Stock in lieu of preferred cash
dividends on such stock.
401(k) Account - Formerly known as Part B, the 401(k) Account includes employee
pre-tax contributions, if any, and Mobil's pre-tax contributions of 2% of base
pay (3% for pre-January 1, 1969 employees). An employee can elect to receive a
portion or all of the company contribution in cash. The combined company and
employee contributions to this account cannot exceed 15% of the employee's
eligible compensation. Federal regulations governing the 401(k) Account limit
some employees to contributions totalling less than 15% of the combined employee
and Mobil 401(k) contribution.
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EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
NOTES TO PLAN FINANCIAL STATEMENTS
YEAR ENDED JANUARY 31, 1996
Note 1. Description of the Plan - continued
Vesting - Mobil's contributions to the Savings Account and related investment
income become vested upon completion of five years of employment. Mobil's
contributions to the 401(k) account and all employee contributions and related
earnings are immediately vested. The terms of the Plan are more fully described
in the Summary Plan Description, which is furnished to each participant.
Note 2. Major Accounting Policies
Security valuation - Prior to May 2, 1994, Mobil Common Stock was valued at the
last reported sales price for the day (based on the New York Stock Exchange), on
the day of valuation or, lacking any sales on that day, at the most recent bid
quotation. Effective May 2, 1994, Mobil Common Stock is valued at the Plan's
average sales price for the day (based on the New York Stock Exchange), on the
day of valuation or, lacking any sales on that day, at the most recent bid
quotation.
Mobil's ESOP Convertible Preferred Stock units (1/100th of a share) are stated
at current value, which is the higher of the liquidation value or current market
value. Liquidation value is the minimum price guaranteed by Mobil, $77.75 per
unit. Prior to May 2, 1994, current market value was defined as the last
reported sales price for Mobil Common Stock as defined in the previous
paragraph. Effective May 2, 1994, current market value is defined as the average
sales price for Mobil Common Stock as defined in the previous paragraph.
Long-Term Fixed Income Funds and the Merrill Lynch Floating Rate Long-Term Fixed
Income Fund (LTFI)are stated at current value, which approximates fair value,
representing the original cost, plus interest (based upon the
contractually-agreed rates) reduced by transfers out and withdrawals.
Jennison Equity Fund is stated at current value, as determined by Merrill Lynch,
with dividends, interest, capital gains and losses, and management and
administration fees reflected in the net value of each unit.
In April of 1994, U.S. Savings Bonds were eliminated as an investment option in
the Plan. The Bonds were liquidated and proceeds were invested in the Merrill
Lynch Institutional Fund.
Effective May 2, 1994, the PIMCO Low Duration Bond Fund and the Short Term Fixed
Income Fund were liquidated and transferred into the Franklin U.S. Government
Securities Fund and the Merrill Lynch Institutional Fund, respectively.
The Franklin U.S. Government Securities Fund is a bond mutual fund stated at
current market value which invests primarily in Government National Mortgage
Association (GNMA) securities and U.S. Government securities with principal and
interest payments backed by the United States Government.
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EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
NOTES TO PLAN FINANCIAL STATEMENTS
YEAR ENDED JANUARY 31, 1996
Note 2. Major Accounting Policies - continued
The Merrill Lynch Institutional Fund is a money market fund which is stated at
current value plus interest, less transfers out and withdrawals.
Effective May 11, 1994, the following investment choices were added to the
Plan: Merrill Lynch Global Allocation Fund, AIM Charter Fund, and Merrill
Lynch Equity Index Fund.
The Merrill Lynch Global Allocation Fund is a global asset allocation mutual
fund stated at current market value that invests in a diversified portfolio of
U.S. and foreign securities, including stocks, bonds and money market
instruments.
The AIM Charter Fund is a growth and income mutual fund stated at current market
value which invest in common stocks, convertibles, and fixed income securities.
The Merrill Lynch Equity Index Trust is stated at fair value, which is
determined by Merrill Lynch based on the market value of all underlying
investments in this investment option. This fund's objective is to replicate the
total return of the Standard & Poor's 500 Stock Index.
Effective July 1, 1995 the following three investment choices were added to
the Plan: MFS Emerging Growth Fund, Templeton Foreign Fund and Templeton
Developing Markets Trust.
The MFS Emerging Growth Fund is an equity mutual fund stated at current market
value, and invests primarily in common stocks of small and medium-size
companies.
The Templeton Foreign Fund is an equity mutual fund stated at current market
value, and invests primarily in common stocks of companies in foreign countries.
The Templeton Developing Markets Trust is an equity mutual fund stated at
current market value, and invests primarily in stocks of companies in developing
or emerging markets.
Investment income - Dividends from Mobil Common Stock are accrued on the ex-
dividend date.
The minimum annual dividend on a unit of Mobil ESOP Convertible Preferred Stock
accrues on a monthly basis, and is set at $6.00 per year. If the aggregate
declared dividends on a share of Mobil Common Stock for the six months before a
semi-annual dividend on the Mobil ESOP Convertible Preferred Stock exceed $3.00
per share, the semi-annual dividend on a unit of the Mobil ESOP Convertible
Preferred Stock will be at least the same as such aggregate dividends on a share
of Mobil Common Stock.
All other earnings are stated on an accrual basis. Investment income from all
sources is stated net of investment management, trustee, audit and other third
party fees, as applicable.
Security transactions are recorded on a trade date basis. Realized gains and
losses are based on average cost.
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EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
NOTES TO PLAN FINANCIAL STATEMENTS
YEAR ENDED JANUARY 31, 1996
Note 2. Major Accounting Policies - continued
Reclassifications - Certain amounts in the financial statements for the year
ended January 31, 1995, have been reclassified to conform to the 1996
presentation.
Use of estimates - The preparation of the financial statements in accordance
with generally accepted accounting principles requires Mobil to make certain
estimates and assumptions affecting amounts in the financial statements. Actual
results could differ from these estimates and assumptions.
Note 3. Employee Stock Ownership Plan (ESOP)
In November 1989, the ESOP trust, supported by Mobil guarantees, privately
placed $800,000,000 of floating interest rate notes due November 22, 2004, and
used the proceeds to purchase 102,894 shares of Mobil ESOP Convertible Preferred
Stock at a price equal to liquidation value, or $7,775 per share. Each share is
convertible into 100 shares of Mobil Common Stock and is entitled to 100 votes.
On February 27, 1990, the ESOP trust issued and Mobil guaranteed $800,000,000 of
9.17% Sinking Fund Debentures due February 29, 2000, pursuant to Rule 415 under
the Securities Act of 1933. The ESOP trust used the proceeds to retire the
floating interest rate notes due November 22, 2004. Principal and interest
payments on the debentures are due semi-annually. Future fiscal year annual
principal maturities are as follows: $92,100,000 in 1997; $103,600,000 in 1998;
$115,800,000 in 1999; $135,600,000 in 2000; and $60,600,000 in 2001. Only assets
held in the ESOP trust are subject to recourse by creditors of the ESOP trust.
The ESOP Trust has a shelf registration on file with the Securities and Exchange
Commission that would, as of January 31, 1996, permit the offer and sale of $230
million of debt securities, guaranteed by Mobil, pursuant to Rule 415. Prior to
January 31, 1996, the ESOP trust issued and Mobil guaranteed an aggregate of $70
million of medium-term notes under this shelf registration. The proceeds of sale
of these notes were used to retire identical principal amounts of the 9.17%
Sinking Fund Debentures, and the proceeds of the issue and sale of any other
debt securities issued and sold under this shelf registration would be used for
the same purpose. These medium-term notes are callable in whole or in part
before their maturities, and interest is due semi-annually. A summary of these
medium-term notes is as follows:
Date of Interest Maturity
Issuance Amount Rate Date
2/28/94 $25,000,000 6.220% 2/28/02
8/31/94 15,000,000 7.550% 2/28/02
2/28/95 30,000,000 8.225% 2/28/04
The ESOP trust uses dividends on the Mobil ESOP Convertible Preferred Stock,
together with contributions from Mobil, to repay the ESOP debt (principal and
interest). The amount of ESOP debt repaid each Plan year results in the release
of shares of Mobil ESOP Convertible Preferred Stock to be available for
allocation to Plan participants' accounts. Mobil contributes semi-annually
sufficient funds to ensure that each participant's account is credited with
Mobil ESOP Convertible Preferred Stock as discussed in Note 1.
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EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
NOTES TO PLAN FINANCIAL STATEMENTS
YEAR ENDED JANUARY 31, 1996
Note 3. Employee Stock Ownership Plan (ESOP) - continued
Plan participants earned 693,592 and 531,391 pay-based units of Mobil ESOP
Convertible Preferred Stock, plus credit for fractional units, for the fiscal
years ended January 31, 1995 and January 31, 1996, respectively. The aggregate
fair values of these units, including fractional units, were $55,696,874 in 1995
and $53,492,407 in 1996. In addition, Plan participants earn units of Mobil ESOP
Convertible Preferred Stock equal to the value of the preferred dividends on
units allocated to participant accounts. The units of Mobil ESOP Convertible
Preferred Stock earned by dividends were 234,945 with a fair value of
$18,743,165 in 1995, and 222,232 with a fair value of $22,365,354 in 1996.
As of January 31, 1995 and January 31, 1996, the Plan held 5,994,059 and
5,240,436 units, respectively, of Mobil ESOP Convertible Preferred Stock, which
have yet to be earned by employees. The current values of these unearned units
were $517,736,846 in 1995 and $580,378,287 in 1996. Net assets available for
benefits at January 31, 1995 and 1996, included unrealized gains on the
unallocated units of $51,698,759 and $172,934,388, respectively.
Financial statements for the ESOP are included in the financial statements of
the Plan. Summarized financial data for the ESOP are as follows:
1995 1996
(000's) (000's)
At January 31:
Current value of Mobil ESOP Convertible Preferred Stock
(shares outstanding 1995 - 95,502; 1996 - 92,383)...... $824,899 $1,023,141
Employer-corporation contribution receivable............. 163,609 170,393
Dividends receivable..................................... 23,826 22,985
Less:
Accrued interest payable............................... 23,598 21,546
Long-term debt......................................... 628,300 577,700
-------- --------
Net assets available for benefits........................ $360,436 $617,273
======== ========
Year Ended January 31:
Employer-corporation contributions....................... $ 71,517 $ 56,752
Dividend income.......................................... 57,651 55,930
Realized and unrealized gains on investments............. 51,474 229,603
Less:
Interest expense....................................... 57,979 54,088
Distributions to participants.......................... 18,383 31,360
-------- --------
Net increase in net assets available for benefits........ $104,280 $256,837
======== ========
Note 4. Administration of Plan Assets
The Plan is administered by Mobil Oil Corporation acting through fiduciaries
designated by its Board of Directors to serve at its discretion.
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EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
NOTES TO PLAN FINANCIAL STATEMENTS
YEAR ENDED JANUARY 31, 1996
Note 4. Administration of Plan Assets - continued
Effective May 1, 1994, Merrill Lynch, Pierce, Fenner and Smith Inc. (Merrill
Lynch) succeeded Mobil as record-keeper for the Plan. An affiliate of Merrill
Lynch, Merrill Lynch Trust Company, assumed all the trustee duties previously
performed by Bankers Trust Company, New York, with the exception of the ESOP
portion of the Plan. Bankers Trust Company remains as the trustee of the ESOP
portion of the Plan.
In its capacity as trustee, Merrill Lynch Trust Company purchases the various
investments, collects income and holds shares for safekeeping. As trustee it
holds legal title to and retains custody of all securities and investments of
the Plan other than the Mobil ESOP Convertible Preferred Stock. Ownership of
Mobil ESOP Convertible Preferred Stock is evidenced by the ESOP trustee's
accounting for the activity of such stock on a notional basis.
Jennison Associates Capital Corporation serves as investment manager of the
Jennison Equity Fund, which consists primarily of a portfolio of domestic
equities and up to 25% in securities of foreign companies traded in U.S.
dollars on U.S. stock exchanges.
The class year Long-Term Fixed Income Funds are invested with Metropolitan Life
Insurance Company, Prudential Insurance Company, John Hancock Mutual Life
Insurance Company, Continental Assurance Company, Connecticut General Life
Insurance Company, American International Life Assurance Company of New York,
and Allstate Life Insurance Company pursuant to contracts that
generally provide for interest at stated rates.
Merrill Lynch Asset Management Inc., a Merrill Lynch affiliate, serves as the
investment manager for the Merrill Lynch Floating Rate Long-Term Fixed Income
Fund, which invests primarily in investment contracts that are issued by high
quality insurance companies, banks and other financial institutions and which
provide interest at fixed or variable rates.
Bankers Trust is the trustee of the ESOP; AIM Equity Funds, Inc. is the
investment manager for AIM Charter Fund; Franklin Custodian Funds, Inc. is the
fund manager for the Franklin U.S. Government Securities Fund; Merrill Lynch
Asset Management is the investment manager for the Merrill Lynch Institutional
Fund, Merrill Lynch Equity Index Fund, and the Merrill Lynch Global Allocation
Fund; Massachusetts Financial Services Company is the fund manager for the MFS
Emerging Growth Fund; and The Franklin Templeton Group is the fund manager for
the Templeton Foreign Fund and Templeton Developing Markets Trust.
Note 5. Contributions and Withdrawals
Mobil's contributions are net of forfeitures of $890,070 and $559,010 for the
years ended January 31, 1995 and 1996, respectively.
Transfers in represent participant-initiated rollovers of certain distributions
from other tax-qualified plans into the Savings Account.
Effective June 1, 1995, the 401(k) hardship withdrawal provision was expanded to
permit withdrawals to pay expenses for room and board as part of post-secondary
education costs.
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EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
NOTES TO PLAN FINANCIAL STATEMENTS
YEAR ENDED JANUARY 31, 1996
Note 5. Contributions and Withdrawals - continued
Effective August 1, 1995 former employees and beneficiaries were granted the
right to make partial withdrawals from their 401(k) and Savings Accounts,
subject to the same rules as are applicable to active employees.
Concurrent with the November 1995 sale of Mobil Chemical Company's Plastics
Division, the following provisions were made for its Plan participants: (i) all
accounts became fully vested, (ii) participants were allowed under certain
conditions to transfer their account balances directly to a Tenneco plan during
a window period from April 1, 1995 through September 30, 1996, (iii) a lump sum
distribution window was opened through December 31, 1997, and (iv) participants
became eligible to initiate loans during the five year period ending November
17, 2000. During the Plan year participants transferred from their accounts a
total $9,325,816 to the Tenneco Plan.
Note 6. Participant Loans
Loan interest rates are reviewed quarterly and determined for new loans, if
appropriate, based on the "Bank Prime Loan" rate for the last business day of
the second preceding calendar month, as published in Federal Reserve Statistical
Release H.15.
Effective February 1, 1995, the limit on the maximum loan amount imposed by the
rule that monthly repayment amounts cannot exceed 10% of base pay was removed.
Restrictions limiting loans to the lesser of $50,000 or one-half of a
participant's account balance remain.
Note 7. Plan Investments
Investments in the Plan at January 31, 1995 were as follows:
Number of Current
Shares Cost Value
or Units (000's) (000's)
Mobil Common Stock*....................... 18,638,510 $ 945,813 $1,609,901
Mobil ESOP Convertible Preferred Stock.... 95,502 742,528 824,899
Jennison Equity Fund...................... 14,458,912 288,847 414,099
Merrill Lynch Institutional Fund.......... 177,141,918 177,142 177,142
Merrill Lynch Equity Index Trust.......... 226,397 6,561 6,785
AIM Charter Fund.......................... 1,267,169 10,579 10,150
Merrill Lynch Global Allocation Fund...... 3,356,647 41,902 39,924
Franklin U. S. Government Securities Fund. 4,887,483 28,767 28,233
Long-Term Fixed Income Funds:
Restricted Option 10................. 8,969,047 91,576 156,689
Restricted Option 11................. 8,368,633 84,822 126,952
Restricted Option 12................. 7,968,518 80,950 112,037
Restricted Option 13................. 12,814,807 129,152 158,775
Merrill Lynch Floating Rate Long-Term Fixed
Income Fund............................... 375,120,042 375,120 375,120
Participant Loans........................... - 89,937 89,937
---------- ----------
Total investments $3,093,696 $4,130,643
========== ==========
* Represents 4.71% of the 395,830,183 shares outstanding at January 31, 1995.
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<PAGE>
EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
NOTES TO PLAN FINANCIAL STATEMENTS
YEAR ENDED JANUARY 31, 1996
Note 7. Plan Investments - continued
Investments in the Plan as of January 31, 1996 were as follows:
Number of Current
Shares Cost Value
or Units (000's) (000's)
Mobil Common Stock*....................... 17,689,088 $ 995,629 $1,959,067
Mobil ESOP Convertible Preferred Stock.... 92,383 718,278 1,023,141
Jennison Equity Fund...................... 14,471,579 328,846 566,562
Merrill Lynch Institutional Fund.......... 147,102,417 147,102 147,102
Merrill Lynch Equity Index Trust.......... 670,074 23,470 27,770
AIM Charter Fund.......................... 3,409,019 32,823 34,602
Merrill Lynch Global Allocation Fund...... 4,273,430 56,788 60,810
Franklin U.S. Government Securities Fund.. 8,073,080 54,662 56,269
MFS Emerging Growth Fund.................. 1,737,398 43,554 47,049
Templeton Foreign Fund.................... 2,499,353 23,561 23,694
Templeton Developing Markets Trust........ 990,671 13,518 14,147
Long-Term Fixed Income Funds:
Restricted Option 12................. 7,253,784 73,702 110,838
Restricted Option 13................. 11,165,106 112,560 148,161
Merrill Lynch Floating Rate Long-Term Fixed
Income Fund............................. 569,412,660 569,413 569,413
Participant Loans......................... - 92,905 92,905
---------- ----------
$3,286,811 $4,881,530
* Represents 4.49% of the 394,316,934 shares outstanding at January 31,
1996.
Additional investments in Restricted Options 10 through 13 are not permitted.
The contractually agreed annual effective interest yields are 9.6% through
December 31, 1995 for Restricted Option 10, 8.54% through July 5, 1995, for
Restricted Option 11; 8.69% through June 30, 1996, for Restricted Option 12, and
7.18% through January 2, 1997, for Restricted
Option 13.
Approximately 71% of the Plan's net assets at January 31, 1995 and 1996 were
investments in or receivables from Mobil.
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<PAGE>
EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
NOTES TO PLAN FINANCIAL STATEMENTS
YEAR ENDED JANUARY 31, 1996
Note 8. Realized and Unrealized Gains and Losses on Investments
The net realized and unrealized gains and (losses) on investments were as
follows:
1995 1996
(000's) (000's)
Mobil Common Stock.............................. $ 79,063 $449,670
Mobil ESOP Convertible Preferred Stock.......... 51,474 229,603
Jennison Equity Fund............................ (11,820) 146,317
Trustee's Short-Term Fixed Income Fund.......... (513) -
Bond Fund....................................... (744) -
Merrill Lynch Equity Index Trust................ 283 4,638
AIM Charter Fund................................ (455) 2,673
Merrill Lynch Global Allocation Fund............ (2,276) 6,562
Franklin U.S. Government Securities Fund........ (761) 2,410
MFS Emerging Growth Fund........................ - 3,823
Templeton Foreign Fund.......................... - 96
Templeton Developing Markets Trust.............. - 633
Long-Term Fixed Income Funds:
Restricted Option 9........................ 14,282 -
Restricted Option 10....................... 14,270 13,041
Restricted Option 11....................... 10,556 4,346
Restricted Option 12....................... 9,399 9,265
Restricted Option 13....................... 11,575 10,443
Merrill Lynch Floating Rate Long-Term Fixed
Income Fund................................... 23 -
-------- -----
$174,356 $883,520
Note 9. Tax Status
On October 12, 1995, the Internal Revenue Service (IRS) determined that the
Plan, as amended to include the ESOP, continued to be a qualified plan under
Section 401(a) of the Internal Revenue Code (the Code), that the ESOP portion
qualifies as an employee stock ownership plan under section 4975(e)(7) of the
Code, and that the Trust thereunder (the Trust) is exempt from Federal income
tax under Section 501(a) of the Code.
Note 10. Plan Termination
While Mobil has not expressed an intent to terminate the Plan, it may do so at
any time, subject to the provisions of the Employee Retirement Income Security
Act (ERISA). In the event the Plan is terminated, all participants will become
fully vested in their accounts and the net assets of the Plan shall be
distributed among the participants in accordance with ERISA.
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<PAGE>
<TABLE>
<CAPTION>
SUPPLEMENTAL INFORMATION
EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
JANUARY 31, 1996
<S> <C> <C> <C>
Description of Investment, CURRENT
Identity of Issue, Borrower, Including Maturity Date, Rate of COST VALUE
Lessor or Similar Party Interest, Par or Maturity Value (000's) (000's)
- ----------------------------------------------------------------------------------------------------
Corporate Stocks:
Mobil Common Stock* 17,689,088 shares $ 995,629 $1,959,067
Mobil ESOP Convertible
Preferred Stock* 92,383 shares 718,278 1,023,141
Mutual Funds:
Franklin Custodian Funds, Inc. Franklin
U.S. Government Securities Fund 8,073,080 shares 54,662 56,269
Merrill Lynch Institutional Fund* 147,102,417 shares 147,102 147,102
AIM Charter Fund 3,409,019 shares 32,823 34,602
Merrill Lynch Global Allocation Fund* 4,273,430 shares 56,788 60,810
Massachusetts Financial Services Company
MFS Emerging Growth Fund 1,737,398 shares 43,554 47,049
Franklin Templeton Group
Templeton Foreign Fund 2,499,353 shares 23,561 23,694
Franklin Templeton Group
Templeton Developing Markets Trust 990,671 shares 13,518 14,147
Trust Funds:
Jennison Associates Capital Corporation
Jennison Equity Fund 14,471,579 units 328,846 566,562
Merrill Lynch Equity Index Trust* 670,074 shares 23,470 27,770
Merrill Lynch Floating Rate
Long-Term Fixed Income Fund* 569,412,660 shares 569,413 569,413
Contracts with Insurance Companies:
Prudential, Connecticut General,& 7,253,784 units with 73,702 110,838
Continental Assurance Long-Term contractually agreed annual
Fixed Income Fund Restricted effective interest yield of
Option 12 8.69% through June 30, 1996
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
SUPPLEMENTAL INFORMATION
EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
JANUARY 31, 1996
<S> <C> <C> <C>
Description of Investment, CURRENT
Identity of Issue, Borrower, Including Maturity Date, Rate of COST VALUE
Lessor or Similar Party Interest, Par or Maturity Value (000's) (000's)
- ----------------------------------------------------------------------------------------------------
Allstate, American Int'l, Connecticut 11,165,106 units with $ 112,560 $ 148,161
General, & John Hancock Long-Term contractually agreed annual
Fixed Income Fund Restricted effective interest yield of
Option 13 7.18% through January 2, 1997
Participant Loans 6% to 9.0% interest rate range 92,905 92,905
---------- ----------
$3,286,811 $4,881,530
<FN>
* Party-in-interest as defined by ERISA
</FN>
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
SUPPLEMENTAL INFORMATION
EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED JANUARY 31, 1996
<S> <C> <C> <C> <C> <C> <C> <C>
Expense Current
Incurred Value at Net
Identity Purchase Selling Lease With Cost of Transaction Gain
of Party Price** Price** Rental Transaction Asset Date (Loss)
Involved Description of Asset (000's) (000's) (000's) (000's) (000's) (000's) (000's)
- ----------------------------------------------------------------------------------------------------------
Series of Transactions (Category iii)
Mobil* Mobil Common Stock
Purch 2,991,376 shs $296,854 $296,854
Sales 3,940,798 shs $354,745 247,038 $354,745 $107,707
Merrill Merrill Lynch
Lynch* Institutional Fund
Purch 78,638,368 shs 78,638 78,638
Sales 108,677,868 shs 108,678 108,678 108,678 -
Merrill Merrill Lynch Floating
Lynch* Rate LTFI
Purch 449,313,807 shs 449,314 449,314
Sales 255,021,189 shs 255,021 255,021 255,021 -
Metropolitan Long-Term Fixed Income
Life Fund Restricted Option
Insurance 10
Company Sales 8,969,047 units 169,729 91,576 169,729 78,153
Prudential & Long-Term Fixed Income
John Hancock Fund Restricted Option
11
Sales 8,368,633 units 131,298 84,822 131,298 46,476
<FN>
* Party-in-interest as defined by ERISA
There were no category (i), (ii) or (iv) reportable transactions for fiscal year
ended January 31, 1996.
</FN>
</TABLE>
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<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, Mobil Oil
Corporation, the administrator of the Employees Savings Plan of Mobil Oil
Corporation, has duly caused this Annual Report to be signed on its behalf by
the undersigned hereunto duly authorized.
EMPLOYEES SAVINGS PLAN OF MOBIL OIL CORPORATION
MOBIL OIL CORPORATION
BY /s/ GORDON G. GARNEY
NAME AND TITLE Gordon G. Garney, Senior
Assistant Secretary
DATE May 10, 1996
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<PAGE>
EXHIBIT INDEX
EXHIBIT SUBMISSION MEDIA
23. Consent of Ernst & Young LLP, Electronic
Independent Auditors,
dated May 6, 1996.
- 17 -
<PAGE>
SIGNATURE
EXHIBIT 23
CONSENT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statements Form
S-8 (No 33-18130) pertaining to the Employees Savings Plan of Mobil Oil
Corporation, Form S-3 (No 33-34133-01) of the Mobil Oil Corporation Employee
Stock Ownership Plan Trust for the registration of $300,000,000 principal amount
of debt securities guaranteed by Mobil Corporation and in the related
Prospectuses, of our report dated April 5, 1996, with respect to the financial
statements and supplemental schedules of the Employees Savings Plan of Mobil Oil
Corporation included in this Annual Report (Form 11-K) for the fiscal year ended
January 31, 1996.
/s/ ERNST & YOUNG LLP
Fairfax, Virginia Ernst & Young LLP
May 6, 1996
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<PAGE>
