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 fiscal ended December 31, 1996
MDU RESOURCES GROUP, INC.
TAX DEFERRED COMPENSATION SAVINGS PLAN FOR
COLLECTIVE BARGAINING UNIT EMPLOYEES
MDU RESOURCES GROUP, INC.
400 NORTH FOURTH STREET
BISMARCK, NORTH DAKOTA 58501
CONTENTS
Required Information
Financial Statements:
Statements of Financial Condition -- December 31,
1996 and 1995
Statements of Income and Changes in Participants'
Equity -- Years ended December 31, 1996, 1995
and 1994
Notes to Financial Statements
Schedules -- Schedule I has been omitted because
the required information is shown in such
financial statements or the notes or supplemental
schedules thereto.
Schedule II -- Allocation of Plan Assets and
Liabilities to Investment Programs
Schedule III -- Allocation of Plan Income and
Changes in Plan Equity to Investment Programs
Report of Independent Public Accountants
Signature page
Exhibit:
Consent of Independent Public Accountants
MDU RESOURCES GROUP, INC.
TAX DEFERRED COMPENSATION SAVINGS PLAN FOR COLLECTIVE
BARGAINING UNIT EMPLOYEES
STATEMENTS OF FINANCIAL CONDITION
December 31,
1996 1995
Assets:
Investments -- (Schedule II)
MDU Resources Group, Inc. common
stock
(1996 -- 1,698,980 shares,
cost $25,890,885;
1995 -- 1,655,249 shares,
cost $24,050,911) $39,077,007 $33,061,799
Other 3,722,237 3,084,100
Cash 873,998 3
Dividends and interest receivable 471,817 453,548
$44,145,059 $36,599,450
Participants' equity:
Distributions due terminated
participants $ 691,558 $ 501,453
Active participants' equity 43,453,501 36,097,997
$44,145,059 $36,599,450
The accompanying notes are an integral part
of these statements.
MDU RESOURCES GROUP, INC.
TAX DEFERRED COMPENSATION SAVINGS PLAN FOR COLLECTIVE
BARGAINING UNIT EMPLOYEES
STATEMENTS OF INCOME AND CHANGES IN PARTICIPANTS' EQUITY
Years ended December 31,
1996 1995 1994
Investment income: (Schedule III)
Dividends $ 1,937,445 $ 1,858,604 $ 1,641,307
Interest 4,670 6,255 12,076
Capital gains 12,043 5,169 6,209
Other (303) 1,414 (79)
Realized gain on
distributions 766,715 815,242 488,819
Unrealized appreciation
(depreciation) on
investments 4,645,842 2,683,009 (4,905,073)
7,366,412 5,369,693 (2,756,741)
Contributions: (Schedule III)
Employers 759,161 790,782 796,949
Employees 2,149,607 2,027,866 2,036,997
Employee rollover 1,418 345 24,827
2,910,186 2,818,993 2,858,773
Distributions to terminated
participants (2,130,534) (2,617,713) (1,381,669)
Net transfers to Tax
Deferred Compensation
Savings Plan (600,455) (133,823) (168,444)
Increase (decrease) in
participants' equity 7,545,609 5,437,150 (1,448,081)
Participants' equity at
beginning of year 36,599,450 31,162,300 32,610,381
Participants' equity at
end of year $44,145,059 $36,599,450 $31,162,300
The accompanying notes are an integral part
of these statements.
1. Description of the Plan
The MDU Resources Group, Inc. Tax Deferred Compensation Savings
Plan For Collective Bargaining Unit Employees (the Plan) was
adopted on November 6, 1986, by the Board of Directors of MDU
Resources Group, Inc. (the Company) to provide a means for
deferred savings and investment by eligible employees and to
afford additional security for their retirement. The Plan is a
defined contribution plan established effective January 1, 1987.
The Company and any of its direct or indirect subsidiaries who
choose to participate in the Plan are the Employers. Effective
January 1, 1988 (Effective Date), the Plan was amended and
restated to reflect the merger and transfer of eligible employees'
accounts of the MDU Resources Group, Inc. Employee Stock Ownership
Plan (ESOP) into the Plan. The fiscal year of the Plan is the
calendar year.
The Board of Directors of the Company may amend or modify the
Plan, and the Boards of Directors of the Employers may, at any
time, terminate the Plan with respect to the respective Employer.
The Plan is administered for the Company by a five-member
committee (the Committee) appointed by the Chief Executive Officer
of the Company.
Administrative expenses of the Plan are paid by the Employers,
however, fees or commissions associated with each of the
investment options are paid primarily by participants as a
deduction from the amount invested or by an offset to investment
earnings.
The Plan contains two parts: 1) The Deferred Savings feature
which is the part of the Plan related to an eligible employee's
ability to defer a portion of the employee's current compensation
into a tax-free trust and 2) The ESOP feature which is the part of
the Plan related to participation in the ESOP, as merged into the
Plan as of the Effective Date.
Deferred Savings
Any employee who is at least 18 years of age, who has completed
at least one year of service with a minimum of 1,000 hours worked
and who is a collective bargaining unit employee of an employer
whose collective bargaining unit has been offered the Plan and
accepted it is eligible to participate in the Plan. An eligible
employee may elect to participate in the Plan on January 1,
April 1, July 1 or October 1 following completion of one year of
service and by filing a written election with the Committee to
have savings contributions made on the employee's behalf.
A former participant or eligible employee who is reemployed shall
again become eligible to become a participant on the first day of
the month following the employee's return to employment as an
eligible employee.
Upon becoming a participant, and in January, April, July and
October of each subsequent year, each participant may, by filing a
written election with the Committee or via the Benefits Advantage
Hotline, authorize the participant's Employer to contribute to the
Plan on such participant's behalf by payroll reduction. The
Benefits Advantage Hotline is operated by Norwest Bank Minnesota,
N.A. (Trustee). The Plan allows contributions by participants
varying from one percent through 15 percent (10 percent through
December 31, 1995), in one percent increments, of eligible
compensation for each pay period. In addition, the Plan accepts
rollover contributions from other qualified retirement plans or an
Individual Retirement Account(IRA) that only holds assets
distributed from a qualified plan as adjusted for earnings, losses
and gains attributable thereto. Such savings contributions on
behalf of a participant are credited to the participant's Rollover
Account. An election is made by each participant to allocate
contributions to any or all of the five available investment
options. The investment election made must be designated in 10
percent increments of the total amount contributed by the
participant to be invested in common stock of the Company, an
equity indexed mutual fund, a bond market indexed fund, a balanced
fund or a short-term investment fund. Such savings contributions
reduce, on a dollar-for-dollar basis, the participant's taxable
earnings in the year in which the savings contributions are made.
Eligible compensation is defined as the employee's total
compensation (not in excess of $150,000, as adjusted) from the
Employer, unreduced by any savings contributions of the eligible
employee to the Plan, and any amount contributed by the Employer
pursuant to a salary reduction agreement and which is not
includible in the gross income of an employee, excluding other
contributions to the Plan, contributions to other employee benefit
plans and certain additional items of compensation which do not
constitute direct earnings.
A participant may authorize suspension of such participant's
savings contributions to the Plan for a minimum period of three
months by filing a written election with the Committee or via the
Benefits Advantage Hotline. Such suspension of savings
contributions is effective no later than the first pay period
coincident with or next following 30 days after the election to
suspend is received by the Trustee or the Committee. Suspended
savings contributions may not be made up by savings contributions
at a later time.
Each participant's Employer makes a matching contribution,
equal to a percentage of such participant's monthly savings
contributions as provided under the Plan, which is credited to
such participant's Matching Contribution Account. All matching
contributions are invested in common stock of the Company.
A participant's interest in a Savings Contribution Account or a
Matching Contribution Account is at all times fully vested and
nonforfeitable.
The Plan limits the elective deferral contribution for each
participant to the annual dollar limit as designated in Section
402(g) of the Internal Revenue Code (the Code) for the calendar
year, as adjusted. For each participant, contributions (other
than rollovers) credited to an account in any plan year, when
aggregated with contributions under all other qualified plans
maintained by the Employers, cannot be greater than the maximum
contribution permitted by Section 415 of the Code. The deduction
for contributions to the Plan, when taken together with all other
contributions made by the Employer to other qualified retirement
plans, cannot exceed the maximum amount deductible under Section
404 of the Code. The Plan also limits the aggregate savings
contributions which may be made on behalf of highly compensated
employees.
Once each month, the Employers remit all authorized
contributions made by the participants to the Trustee to be held
in trust and invested for the respective accounts of the
participants, pursuant to the terms of the Trust Agreement
executed with the Trustee effective January 1, 1994.
Contributions for common stock, including the Employers' matching
contribution, are used by the Trustee to purchase shares of MDU
Resources Group, Inc. common stock (MDU stock) directly in the
open market. All such market purchases may be made at such prices
as the Trustee may determine in its sole and absolute discretion.
Under the terms of the Trust Agreement, the Trustee may also
purchase shares of authorized but unissued common stock directly
from the Company if the Company chooses to issue new stock. The
funds contributed to the equity indexed mutual fund are invested
in the Vanguard Index-500 Portfolio (Vanguard), which trades in
the 500 common stocks listed on the Standard & Poor's 500
Composite Stock Price Index. The funds contributed to the bond
market indexed fund are invested through Mellon Bank in the
Dreyfus Bond Market Index Fund (Mellon), which invests in
corporate bonds which attempt to match the Lehman Brothers
Government/Corporate Bond Index. The funds contributed to the
balanced fund are invested in the Fidelity Balanced Fund
(Fidelity), which invests in high-yielding securities including
common stocks, preferred stocks and bonds. The funds contributed
to the short-term investment fund (STIF) are invested in short-
term, high-quality, money market investments. Effective January
1, 1997, Fidelity was replaced with the Dodge & Cox Balanced Fund,
which invests in well-established companies' stocks and bonds. In
addition, Mellon was replaced on January 1, 1997, with the
Vanguard Total Bond Market Index Fund, which invests in corporate
bonds which attempt to match the Lehman Brothers Aggregate Bond
Index.
Any dividends, interest, gains, losses or other distributions
on the above mentioned investments and short-term investment
income allocated to a participant's accounts are reinvested in the
appropriate investment medium, which is credited to the
participant's accounts. As amounts are allocated to each
participant's accounts, they become fully vested.
The amount credited to a participant's Savings Contribution
Account and Matching Contribution Account shall become payable to
the participant or the participant's beneficiary/beneficiaries, as
applicable (see tax rules related to rollover options), upon
death, retirement, disability, or other termination of employment
with the Employers. The distribution of such amounts will be in
accordance with the Plan, based on the method of payment elected
by the participant or designated beneficiary/beneficiaries.
Amounts credited to such accounts will be paid as soon as
practicable after such amounts are ascertained; provided that such
payment shall not be made prior to the participant's attainment of
age 65 without the written consent of the participant if the value
of such accounts exceeds $3,500.
Upon written application to the Committee, a participant may
make withdrawals from such participant's Savings Contribution
Account or Matching Contribution Account under certain conditions.
ESOP
Participation in the ESOP feature of the Plan is limited to
participants in the ESOP as of the Effective Date or the date as
of which an ESOP Account is established under the Plan, whichever
is later.
As of the Effective Date, ESOP Accounts have been suspended and
no additional contributions shall be made by the Company to such
accounts, other than to reflect dividends or other earnings,
unless and to the extent the Company in its sole discretion shall
make additional contributions.
A participant's interest in an ESOP Account is at all times
fully vested and nonforfeitable.
Distributions are consistent with the Deferred Savings feature
previously mentioned.
Each participant with an ESOP Account, who has attained age 55
and who has completed at least 10 years of participation under the
ESOP, the Plan or both is entitled to elect the distribution of a
percentage of the value of the participant's ESOP Account
attributable to common stock acquired under the ESOP or ESOP
feature after December 31, 1986.
2. Summary of significant accounting policies
Investment valuation --
Investments held by the Plan are carried at market value.
Market value for Mellon is determined from several independent
pricing sources. Market value for the STIF approximates cost.
Market value of the Plan's other investments is based on published
market quotations.
Contributions --
Employer and employee contributions are recorded by the Plan
when received or determined to be receivable. Employee
contributions are accumulated by the Employers through payroll
reductions.
Other --
Securities transactions are recorded on a trade date basis.
Dividend income is recorded on the ex-dividend date. Interest
income is recorded as earned.
3. Investments
The cost basis for distributions from the Plan is calculated
using the average cost per participant. Information concerning
distributions to terminated participants and other participants
meeting certain conditions of the Plan during 1996, 1995 and 1994
was as follows:
<TABLE>
<CAPTION>
Deferred Savings ESOP
1996 1995 1994 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
MDU Stock:
Number of
shares 43,186 39,459 20,026 47,798 59,062 23,403
Market value $943,533 $944,138 $617,786 $1,037,104 $1,355,176 $713,155
Average cost $728,258 $769,184 $467,656 $555,131 $744,054 $378,141
Cash $137,448 $314,555 $41,921 $12,449 $16,518 $8,807
</TABLE>
The net changes in unrealized appreciation of Plan investments
during 1996, 1995 and 1994 were as follows:
<TABLE>
<CAPTION>
Deferred Savings ESOP
1996 1995 1994 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Unrealized
appreciation
at January 1 $3,918,743 $1,924,203 $4,394,048 $5,747,292 $5,058,823 $7,494,051
Change during
the year 3,302,164 1,994,540 (2,469,845) 1,343,678 688,469 (2,435,228)
Unrealized
appreciation
at
December 31 $7,220,907 $3,918,743 $1,924,203 $7,090,970 $5,747,292 $5,058,823
</TABLE>
4. Federal income taxes
The Internal Revenue Service (IRS) has informed the Company that
the Plan, as amended through August 16, 1994, is qualified under
Section 1.401-1 of the Income Tax Regulations. The Company intends
to file subsequent plan amendments with the IRS to receive final
determination. The Company believes the Plan, as amended, will
remain exempt from federal income tax under Section 501(a) of the
Code. Contributions under the Plan and earnings of the trust will
not be taxable to the participants until distributed. Except as
stated below, any distribution made to a participant is taxable as
ordinary income in the year of distribution.
Under current law, the amount taxable as ordinary income may be
eligible for a special five-year averaging method of taxation
(participants who reached age 50 before 1986 may be eligible for
ten-year averaging) if the participant has participated in the Plan
for five years prior to the year in which the distribution is
received. Any net unrealized appreciation at the time of
distribution will be treated as long-term capital gain upon the
subsequent sale of the common stock (unless the participant has
previously elected to include this amount as income in the year of
distribution) and any further appreciation subsequent to the date
of distribution will be treated as long-term or short-term capital
gain depending on the participant's holding period.
Distributions from the Plan may qualify under the Code as
"eligible rollover distributions." An eligible rollover
distribution is a distribution paid directly from the Plan to an
IRA or another employer plan that accepts rollovers or paid to the
participant and rolled over by the participant within 60 days to a
qualifying IRA or another employer qualified plan. If a
participant chooses either of these options, such participant is
not taxed on the amount rolled over until the participant later
receives a distribution from the IRA or the employer plan.
The foregoing covers only the general federal income tax aspects
of Plan participation and distributions.
SUPPLEMENTAL
SCHEDULES
<TABLE>
ALLOCATION OF PLAN ASSETS AND
LIABILITIES TO INVESTMENT PROGRAMS
December 31, 1996
<CAPTION>
Total
ESOP Deferred Savings Deferred
MDU Stock MDU Stock Vanguard Mellon Fidelity STIF Savings Total
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments --
Participants 546 689 366 153 109 26
Number of shares/
units 643,521 1,055,459 49,996 257 --- 261,898 1,367,610 2,011,131
Cost $ 7,710,244 $18,180,641 $2,332,074 $ 2,510 $ --- $261,898 $20,777,123 $28,487,367
Market value $14,801,214 $24,275,793 $3,457,828 $ 2,511 $ --- $261,898 $27,998,030 $42,799,244
Cash --- --- 1 492,254 381,742 1 873,998 873,998
Dividends and
interest receivable 178,578 293,075 7 1 2 154 293,239 471,817
$14,979,792 $24,568,868 $3,457,836 $494,766 $381,744 $262,053 $29,165,267 $44,145,059
Participants' equity:
Distributions due
terminated
participants $ 303,994 $ 374,321 $ 8,624 $ 4,619 $ --- $ --- $ 387,564 $ 691,558
Active participants'
equity 14,675,798 24,194,547 3,449,212 490,147 381,744 262,053 28,777,703 43,453,501
$14,979,792 $24,568,868 $3,457,836 $494,766 $381,744 $262,053 $29,165,267 $44,145,059
The accompanying notes are an integral part
of this schedule.
</TABLE>
<TABLE>
ALLOCATION OF PLAN ASSETS AND
LIABILITIES TO INVESTMENT PROGRAMS
December 31, 1995
<CAPTION>
Total
ESOP Deferred Savings Deferred
MDU Stock MDU Stock Vanguard Mellon Fidelity STIF Savings Total
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments --
Participants 582 729 356 162 104 23
Number of shares/
units 683,439 971,810 40,241 40,954 19,960 36,149 1,109,114 1,792,553
Cost $ 7,836,066 $16,214,845 $1,734,276 $395,409 $263,122 $36,150 $18,643,802 $26,479,868
Market value $13,583,357 $19,478,442 $2,348,663 $421,720 $277,568 $36,149 $22,562,542 $36,145,899
Cash 1 --- --- --- 1 1 2 3
Dividends and
interest receivable 186,237 264,994 15 2,121 6 175 267,311 453,548
$13,769,595 $19,743,436 $2,348,678 $423,841 $277,575 $36,325 $22,829,855 $36,599,450
Participants' equity:
Distributions due
terminated
participants $ 293,389 $ 190,010 $ 14,727 $ 3,327 $ --- $ --- $ 208,064 $ 501,453
Active participants'
equity 13,476,206 19,553,426 2,333,951 420,514 277,575 36,325 22,621,791 36,097,997
$13,769,595 $19,743,436 $2,348,678 $423,841 $277,575 $36,325 $22,829,855 $36,599,450
The accompanying notes are an integral part
of this schedule.
</TABLE>
<TABLE>
ALLOCATION OF PLAN INCOME AND CHANGES
IN PLAN EQUITY TO INVESTMENT PROGRAMS
Year ended December 31, 1996
<CAPTION> Total
ESOP Deferred Savings Deferred
MDU Stock MDU Stock Vanguard Mellon Fidelity STIF Savings Total
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends $ 711,730 $1,122,376 $ 60,055 $ 27,185 $ 16,099 $ --- $ 1,225,715 $ 1,937,445
Interest 208 2,312 294 82 55 1,719 4,462 4,670
Capital gains --- --- 12,043 --- --- --- 12,043 12,043
Other --- --- --- --- --- (303) (303) (303)
Realized gain on
distributions 490,598 218,851 15,393 11,221 30,652 --- 276,117 766,715
Unrealized appreciation
(depreciation) on
investments 1,343,678 2,831,555 511,367 (26,310) (14,448) --- 3,302,164 4,645,842
2,546,214 4,175,094 599,152 12,178 32,358 1,416 4,820,198 7,366,412
Contributions:
Employers --
MDU --- 551,752 --- --- --- --- 551,752 551,752
Williston Basin --- 86,159 --- --- --- --- 86,159 86,159
Knife River --- 121,250 --- --- --- --- 121,250 121,250
--- 759,161 --- --- --- --- 759,161 759,161
Employees --
MDU --- 1,029,139 390,154 60,887 86,261 8,772 1,575,213 1,575,213
Williston Basin --- 155,618 74,084 8,968 8,363 4,220 251,253 251,253
Knife River --- 245,156 57,859 12,049 6,501 1,576 323,141 323,141
--- 1,429,913 522,097 81,904 101,125 14,568 2,149,607 2,149,607
Employee rollover --
MDU --- 871 547 --- --- --- 1,418 1,418
Williston Basin --- --- --- --- --- --- --- ---
Knife River --- --- --- --- --- --- --- ---
--- 871 547 --- --- --- 1,418 1,418
--- 2,189,945 522,644 81,904 101,125 14,568 2,910,186 2,910,186
Distributions to
terminated
participants (1,049,553) (977,874) (75,325) (14,638) (8,961) (4,183) (1,080,981) (2,130,534)
Transfers of
participants' equity:
Fund to Fund --- (346,851) 160,000 (6,723) (20,353) 213,927 --- ---
Plan to Plan (286,464) (214,882) (97,313) (1,796) --- --- (313,991) (600,455)
(286,464) (561,733) 62,687 (8,519) (20,353) 213,927 (313,991) (600,455)
Increase in
participants' equity 1,210,197 4,825,432 1,109,158 70,925 104,169 225,728 6,335,412 7,545,609
Participants' equity
at beginning of year 13,769,595 19,743,436 2,348,678 423,841 277,575 36,325 22,829,855 36,599,450
Participants' equity
at end of year $14,979,792 $24,568,868 $3,457,836 $494,766 $381,744 $262,053 $29,165,267 $44,145,059
The accompanying notes are an integral part
of this schedule.
</TABLE>
<TABLE>
ALLOCATION OF PLAN INCOME AND CHANGES
IN PLAN EQUITY TO INVESTMENT PROGRAMS
Year ended December 31, 1995
<CAPTION>
Total
ESOP Deferred Savings Deferred
MDU Stock MDU Stock Vanguard Mellon Fidelity STIF Savings Total
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends $ 767,861 $1,012,285 $ 46,899 $ 21,874 $ 9,685 $ --- $ 1,090,743 $ 1,858,604
Interest 45 4,022 239 91 63 1,795 6,210 6,255
Capital gains --- --- 5,169 --- --- --- 5,169 5,169
Other --- 1,482 --- --- --- (68) 1,414 1,414
Realized gain (loss)
on distributions 605,311 186,746 22,762 522 (99) --- 209,931 815,242
Unrealized appreciation
on investments 688,469 1,416,242 521,231 37,782 19,285 --- 1,994,540 2,683,009
2,061,686 2,620,777 596,300 60,269 28,934 1,727 3,308,007 5,369,693
Contributions:
Employers --
MDU --- 567,306 --- --- --- --- 567,306 567,306
Williston Basin --- 86,123 --- --- --- --- 86,123 86,123
Knife River --- 137,353 --- --- --- --- 137,353 137,353
--- 790,782 --- --- --- --- 790,782 790,782
Employees --
MDU --- 1,014,255 291,358 56,685 91,978 6,060 1,460,336 1,460,336
Williston Basin --- 143,289 53,697 8,462 6,396 7,750 219,594 219,594
Knife River --- 273,698 50,124 14,188 7,739 2,187 347,936 347,936
--- 1,431,242 395,179 79,335 106,113 15,997 2,027,866 2,027,866
Employee rollover --
MDU --- 345 --- --- --- --- 345 345
Williston Basin --- --- --- --- --- --- --- ---
Knife River --- --- --- --- --- --- --- ---
--- 345 --- --- --- --- 345 345
--- 2,222,369 395,179 79,335 106,113 15,997 2,818,993 2,818,993
Distributions to
terminated
participants (1,359,020) (1,153,967) (78,875) (18,442) (2,821) (4,588) (1,258,693) (2,617,713)
Transfers of
participants' equity:
Fund to Fund --- 44,885 (45,143) 3,208 (6,487) 3,537 --- ---
Plan to Plan (59,204) (63,147) (11,472) --- --- --- (74,619) (133,823)
(59,204) (18,262) (56,615) 3,208 (6,487) 3,537 (74,619) (133,823)
Increase in
participants' equity 643,462 3,670,917 855,989 124,370 125,739 16,673 4,793,688 5,437,150
Participants' equity
at beginning of year 13,126,133 16,072,519 1,492,689 299,471 151,836 19,652 18,036,167 31,162,300
Participants' equity
at end of year $13,769,595 $19,743,436 $2,348,678 $423,841 $277,575 $36,325 $22,829,855 $36,599,450
The accompanying notes are an integral part
of this schedule.
</TABLE>
<TABLE>
ALLOCATION OF PLAN INCOME AND CHANGES
IN PLAN EQUITY TO INVESTMENT PROGRAMS
Year ended December 31, 1994
<CAPTION>
Total
ESOP Deferred Savings Deferred
MDU Stock MDU Stock Vanguard Mellon Fidelity STIF Savings Total
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends $ 747,152 $ 844,673 $ 36,239 $ 10,868 $ 2,375 $ --- $ 894,155 $ 1,641,307
Interest 2,336 4,773 72 4,447 26 422 9,740 12,076
Capital gains --- --- 6,209 --- --- --- 6,209 6,209
Other --- --- (10) (61) --- (8) (79) (79)
Realized gain (loss)
on distributions 338,943 151,569 1,823 (3,508) (8) --- 149,876 488,819
Unrealized depreciation
on investments (2,435,228) (2,415,726) (27,809) (21,473) (4,837) --- (2,469,845) (4,905,073)
(1,346,797) (1,414,711) 16,524 (9,727) (2,444) 414 (1,409,944) (2,756,741)
Contributions:
Employers --
MDU --- 559,706 --- --- --- --- 559,706 559,706
Williston Basin --- 90,219 --- --- --- --- 90,219 90,219
Knife River --- 147,024 --- --- --- --- 147,024 147,024
--- 796,949 --- --- --- --- 796,949 796,949
Employees --
MDU --- 1,025,839 292,406 58,058 64,967 3,959 1,445,229 1,445,229
Williston Basin --- 150,402 56,216 10,395 4,295 6,834 228,142 228,142
Knife River --- 281,207 56,601 17,574 6,551 1,693 363,626 363,626
--- 1,457,448 405,223 86,027 75,813 12,486 2,036,997 2,036,997
Employee rollover --
MDU --- 24,157 --- --- --- --- 24,157 24,157
Williston Basin --- 134 268 268 --- --- 670 670
Knife River --- --- --- --- --- --- --- ---
--- 24,291 268 268 --- --- 24,827 24,827
--- 2,278,688 405,491 86,295 75,813 12,486 2,858,773 2,858,773
Distributions to
terminated
participants (721,962) (636,523) (15,154) (7,268) (762) --- (659,707) (1,381,669)
Transfers of
participants' equity:
Fund to Fund --- (23,655) (45,507) (16,819) 79,229 6,752 --- ---
Plan to Plan (53,093) (95,914) (14,641) (4,796) --- --- (115,351) (168,444)
(53,093) (119,569) (60,148) (21,615) 79,229 6,752 (115,351) (168,444)
Increase (decrease) in
participants' equity (2,121,852) 107,885 346,713 47,685 151,836 19,652 673,771 (1,448,081)
Participants' equity
at beginning of year 15,247,985 15,964,634 1,145,976 251,786 --- --- 17,362,396 32,610,381
Participants' equity
at end of year $13,126,133 $16,072,519 $1,492,689 $299,471 $151,836 $19,652 $18,036,167 $31,162,300
The accompanying notes are an integral part
of this schedule.
</TABLE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To MDU Resources Group, Inc.:
We have audited the accompanying statements of financial condition
of MDU Resources Group, Inc. Tax Deferred Compensation Savings
Plan for Collective Bargaining Unit Employees as of December 31,
1996 and 1995, and the related statements of income and changes in
participants' equity for each of the three years in the period
ended December 31, 1996. These financial statements and the
schedules referred to below are the responsibility of the Plan
Administrator. Our responsibility is to express an opinion on
these financial statements and supplemental 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 financial position of MDU
Resources Group, Inc. Tax Deferred Compensation Savings Plan For
Collective Bargaining Unit Employees as of December 31, 1996 and
1995, and the results of its operations and the changes in its
participants' equity for each of the three years in the period
ended December 31, 1996 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 supplemental
schedules are presented for purposes of additional analysis and
are not a required part of the basic financial statements. This
information has been subjected to the auditing procedures applied
in our audit of the basic financial statements and, in our
opinion, is fairly stated in all material respects in relation to
the basic financial statements taken as a whole.
/s/ ARTHUR ANDERSEN LLP
ARTHUR ANDERSEN LLP
Minneapolis, Minnesota,
March 18, 1997
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Tax Deferred Compensation Savings Plan For Collective
Bargaining Unit Employees committee has duly caused this annual
report to be signed on its behalf by the undersigned hereunto duly
authorized.
MDU Resources Group, Inc.
Tax Deferred Compensation
Savings Plan for Collective
Bargaining Unit Employees
Date: March 28, 1997 By /s/ Douglas C. Kane
Douglas C. Kane (Chairman)
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the
incorporation of our report included in this Form 11-K, into the
Company's previously filed Registration Statements (Form S-8
No. 33-53898 and No. 333-06103).
/s/ ARTHUR ANDERSEN LLP
ARTHUR ANDERSEN LLP
Minneapolis, Minnesota,
March 28, 1997
