CALENERGY COMPANY, INC.
MONEY PURCHASE PENSION PLAN
Financial Statements, Supplemental Schedules
for the Years Ended December 31, 1996 and 1995
and Independent Auditors' Report
CALENERGY COMPANY, INC. MONEY PURCHASE PENSION PLAN
TABLE OF CONTENTS
Page
Independent Auditors' Report 1
Financial Statements:
Statements of Net Assets Available for Benefits
at December 31, 1996 and 1995 2
Statements of Changes in Net Assets Available for Benefits for the
Years Ended December 31, 1996 and 1995 3
Notes to Financial Statements 4-6
Supplemental Schedules:
Item 27a - Schedule of Assets Held for Investment Purposes
at December 31,1996 7
Item 27d - Schedule of Reportable Transactions for the
Year Ended December 31, 1996 8
Supplemental Schedules not listed above are omitted because of the absence
of conditions under which they are required.
Exhibit I - Independent Auditors' Consent 9
INDEPENDENT AUDITORS' REPORT
To the CalEnergy Company, Inc.
Money Purchase Pension Plan Committee
We have audited the accompanying statements of net assets available for
benefits of CalEnergy Company, Inc. Money Purchase Pension Plan (the "Plan")
as of December 31, 1996 and 1995, 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
as of December 31, 1996 and 1995, and changes in net assets available for
benefits for the years then ended, in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules listed in
the table of contents are presented for the purpose of additional analysis
and are not a required part of the basic financial statements, but are
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement
Income Security Act of 1974. The supplemental information by fund in the
statements of net assets available for benefits and the statements of
changes in net assets available for benefits is presented for purposes of
additional analysis rather than to present net assets available for benefits
and changes in net assets available for benefits of the individual funds.
The supplemental schedules and supplemental information by fund is the
responsibility of the Plan's management. Such supplemental schedules and
supplemental information by fund 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.
DELOITTE & TOUCHE LLP
Omaha, Nebraska
May 23, 1997
CALENERGY COMPANY, INC. MONEY PURCHASE PENSION PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1996 AND 1995
1996 1995
ASSETS
Investments at fair value:
Dreyfus GNMA Fund $2,679,930 $2,830,499
Capital Preservation Fund 201,706 -
Dreyfus New Leaders Fund 119,110 -
Dreyfus Strategic Income 3,537 -
Dreyfus Disciplined Stock Fund 69,238 -
Dreyfus Appreciation Fund 269,085 -
CalEnergy Stock 52,431 -
Total investments 3,395,037 2,830,499
Employer contribution receivable - 727,134
Total assets 3,395,037 3,557,633
LIABILITIES
Due to CalEnergy (Note 3) 120,133 -
Net assets available for benefits $3,274,904 $3,557,633
The accompanying notes are an integral part of the financial statements.
CALENERGY COMPANY, INC. MONEY PURCHASE PENSION PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 1996 AND 1995
1996 1995
Additions:
Employer contributions $ - $747,764
Interest income 1,515 21,449
Dividend income 214,206 147,347
Net appreciation (depreciation)
in the fair value of investments (70,150) 284,506
Total additions 145,571 1,201,066
Deductions:
Benefit payments 308,167 832,305
Due to CalEnergy 120,133 -
Total deductions 428,300 832,305
Net additions (deductions) (282,729) 368,761
Net assets available for benefits:
Beginning of year 3,557,633 3,188,872
End of year $3,274,904 $3,557,633
The accompanying notes are an integral part of the financial statements.
CALENERGY COMPANY, INC. MONEY PURCHASE PENSION PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1996 AND 1995
1. DESCRIPTION OF PLAN
The CalEnergy Company, Inc. Money Purchase Pension Plan ("the Plan") is a
money purchase pension plan which was established in 1990 with an
effective date of January 1, 1990. The following description of the Plan
is provided for general information purposes only. Participants should
refer to the Plan Agreement (the "Agreement") for a more complete
description of the Plan's provisions.
General - The Plan is a defined contribution pension plan subject to the
provisions of the Employee Retirement Income Security Act of 1974 (ERISA).
Participation - All employees of CalEnergy Operating Company and
affiliated entities, a wholly owned subsidiary of CalEnergy Company, Inc.
(the "Company"), were previously eligible to participate in the Plan after
satisfying certain length-of-service requirements. By amendment to the
plan dated September 30, 1996, the employees' right to enter the plan was
terminated effective June 30, 1996. The Plan operates under the direction
of an administrative committee, appointed by the Company's Board of
Directors, as provided in the Agreement.
Contributions - By amendment to the plan dated September 30, 1996, the
Company ceased employer contributions and future benefits accruals,
effective for Plan years beginning after December 31, 1995. Prior to
1996, the Company contributed an amount equal to 6% of each eligible
participant's annual compensation, as defined. Employees make no
contributions to the Plan.
Vesting - All participant account balances became 100% vested as of
December 31, 1995, by Amendment to the Plan dated September 30, 1996.
Previously all non-vested amounts were forfeited to the Plan upon
participant termination. Forfeitures amounted to $-0- and $120,518 for
1996 and 1995, respectively.
Benefits - Participants are entitled to withdraw their account balances
only upon retirement, death, disability or termination.
Termination - Upon partial or full termination of the Plan, distributions
will be made as specified in the Agreement.
Trustee - The Dreyfus Trust Company ("Dreyfus") is the Plan Trustee and
executes all investment transactions and recordkeeping. All investment
transactions are determined based on the allocation of investments as
directed by the participants. Prior to November 1996, investment
transactions were directed by the administrative committee.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting - The accompanying financial statements have been
prepared on the accrual basis of accounting in conformity with generally
accepted accounting principles.
Investments - The Plan's investments are stated at fair value. The
Company common stock is valued at the last published sales price at the
end of the Plan year. The Dreyfus Funds and the Capital Preservation Fund
are valued at quoted market prices.
The Company common stock represents shares of 1,557 and 0 at December 31,
1996 and 1995, respectively.
Net Appreciation (Depreciation) in the Fair Value of Investments - The
Plan presents in the accompanying statement of changes in net assets, the
net appreciation (depreciation) in the fair value of its investments which
consists of the realized gains or losses and the unrealized appreciation
or depreciation on those investments. Such amounts are based on the
beginning of the year fair value, or cost if purchased during the year.
Administrative Expenses - All costs of Plan administration are paid by the
Company.
Use of Estimates - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from
those estimates.
3. DUE TO CALENERGY
In 1995, the Company's contribution exceeded the Plan's funding
requirement. This amount will be repaid to the Company in 1997.
4. TAX STATUS
The trust established under the Plan to hold the Plan's assets is
qualified pursuant to the appropriate section of the Internal Revenue Code
and, accordingly, the trust's net investment income is exempt from income
taxes. In December 1996, the Plan obtained a favorable tax determination
letter from the Internal Revenue Service and the Plan sponsor believes
that the Plan continues to qualify and to operate as designed. Therefore,
no provision for income taxes has been included in the Plan's financial
statements.
5. INACTIVE ACCOUNTS
In 1996 and 1995, $176,768 and $96,481, respectively, were allocated to
accounts of persons who have withdrawn from participation in the Plan, but
for which disbursement has not been made. These amounts are included as a
component of net assets available for benefits.
6. FUND INFORMATION
Employer contributions, interest income, dividend income, net appreciation
(depreciation) in the fair value of investments, and benefit payments by
fund are as follows for the years ended December 31, 1996 and 1995:
1996 1995
Employer contributions:
Dreyfus GNMA Fund $ - $747,764
Interest income:
Dreyfus GNMA Fund $ - $ 21,449
Capital Preservation Fund 1,478 -
CalEnergy Common Stock 37 -
Total $1,515 $21,449
Dividend income:
Dreyfus GNMA Fund $198,899 $147,347
Dreyfus New Leaders Fund 8,123 -
Dreyfus Strategic Income 57 -
Dreyfus Disciplined Stock Fund 4,522 -
Dreyfus Appreciation Fund 2,605 -
Total $214,206 $147,347
Net appreciation (depreciation) in the fair value of investments:
Dreyfus GNMA Fund $(67,694) $284,506
Dreyfus New Leaders Fund (4,599) -
Dreyfus Strategic Income 69 -
Dreyfus Disciplined Stock Fund (3,508) -
Dreyfus Appreciation Fund 480 -
CalEnergy Common Stock 5,102 -
Total $(70,150) $284,506
Benefit payments:
Dreyfus GNMA Fund $308,167 $832,305
7. RELATED PARTY TRANSACTIONS
Certain Plan investments are shares of mutual funds managed by the Dreyfus
Trust Company. The Dreyfus Trust Company is the trustee as defined by the
Plan and, therefore, these transactions qualify as party-in-interest. In
addition, transactions of the CalEnergy stock fund qualify as party-in-
interest
CALENERGY COMPANY, INC. MONEY PURCHASE PENSION PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1996
Column A Column B Column C Column D Column E
Description of Investment
Identity ofIssuer, Including Collateral Rate
Borrower, Lessor, of Interest, Maturity Date, Current
or Similar Party Par, or Maturity Value Cost Value
* Dreyfus Trust Company GNMA Fund $2,658,123 $2,679,930
* CalEnergy Company, Inc.CalEnergy Common Stock,
1,557 shares 47,329 52,431
LaSalle NationalTrust Capital Preservation Fund 201,705 201,706
* Dreyfus Trust Company Strategic Income 3,512 3,537
* Dreyfus Trust Company Disciplined Stock Fund 72,750 69,238
* Dreyfus Trust Company New Leaders Fund 123,709 119,110
* Dreyfus Trust Company Appreciation Fund 268,608 269,085
Total Investments $3,375,736 $3,395,037
CALENERGY COMPANY, INC. MONEY PURCHASE PENSION PLAN
Item 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1996
Series Transactions, When Aggregated, Involving an Amount
in Excess of Five Percent of the Current Value of Plan Assets
Column A Column B Column C Column D Column E Column F Column G
Dollar
Identity of Description Number of Number of Value of Value of Net Gain
Party Involved of Asset Purchases Sales Purchases Sales (Loss)
* Dreyfus Corporation 14 62 $ 926,034 $1,008,909 $ 11,797
Premier GNMA
* Dreyfus Trust 19 1 268,734 130 4
Appreciation Fund
LaSalle National Trust 8 - 201,706 - -
Capital Preservation Fund
* Party-in-Interest.
EXHIBIT I
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement on Form
S-8 of CalEnergy Company, Inc. of our report dated May 23, 1997, appearing in
this Annual Report on Form 11-K of CalEnergy Company, Inc. for the year ended
December 31, 1996.
DELOITTE & TOUCHE LLP
Omaha, Nebraska
June 30, 1997
