|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previous: SMITH INTERNATIONAL INC, 11-K, 1994-06-29 |
Next: NEUBERGER & BERMAN INCOME FUNDS, NSAR-A, 1994-06-29 |
<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(Mark One)
/ X / ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the Year Ended December 31, 1993
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the Transition Period From to
Commission File Number I-8520
A. Full title of the Plan and the address of the Plan, if
different from that of the issuer named below:
TERRA INDUSTRIES INC. EMPLOYEES' SAVINGS AND INVESTMENT PLAN
B. Name of issuer of the securities held pursuant to the
Plan and the address of its principal executive
office:
TERRA INDUSTRIES INC.
TERRA CENTRE
600 FOURTH STREET
P.O. BOX 6000
SIOUX CITY, IOWA 51102-6000
<PAGE> 2
REQUIRED INFORMATION
Plan financial statements and schedules are prepared in
accordance with the financial reporting requirements of ERISA
and are included therein as listed in the table of contents
below.
Table of Contents
(a) Financial Statements
Pages
Independent Auditors' Report 3
Statements of Net Assets Available for Benefits at
December 31, 1993 and 1992 4-5
Statements of Changes in Net Assets Available for
Benefits for the Years Ended December 31, 1993
and 1992 6-7
Notes to Financial Statements 8-11
(b) Supplemental Schedules
Schedule of Assets Held for Investment Purposes 12
Schedule of Reportable Transactions 13-14
(c) Exhibits
Exhibit E - Independent Auditors' Consent 15
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the members of the Terra Industries Inc. Employee Benefit
Committee have duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
TERRA INDUSTRIES INC. EMPLOYEES'
SAVINGS AND INVESTMENT PLAN
Date: June 29, 1994 By /S/ GEORGE H. VALENTINE
---------------- -------------------------------
George H. Valentine
Vice President, General Counsel
and Corporate Secretary
<PAGE> 4
[DELOITTE & TOUCHE LETTERHEAD]
INDEPENDENT AUDITORS' REPORT
To the Participants and
Administrator of the
Terra Industries Inc.
Employees' Savings and Investment Plan
We have audited the accompanying statements of net assets
available for benefits of the Terra Industries Inc.
Employees' Savings and Investment Plan as of December 31,
1993 and 1992, 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, such financial statements present fairly, in
all material respects, the net assets available for benefits
of the Terra Industries Inc. Employees' Savings and
Investment Plan as of December 31, 1993 and 1992, and the
changes in net assets available for benefits for the years
then ended in conformity with generally accepted accounting
principles.
Our audits were conducted for the purpose of forming an
opinion on the basic financial statements taken as a whole.
The supplemental schedules of (1) assets held for investment
purposes as of December 31, 1993, and (2) reportable
transactions for the year ended December 31, 1993, 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.
These schedules are the responsibility of the Plan's
management. Such schedules have been subjected to our
auditing procedures applied on the audit of the 1993 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/ DELOITTE & TOUCHE
- - -------------------------
DELOITTE & TOUCHE
Omaha, Nebraska
April 15, 1994
<PAGE> 5
TERRA INDUSTRIES INC.
EMPLOYEES' SAVINGS AND INVESTMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1993
<TABLE>
<CAPTION>
- - --------------------------------------------------------------------------------------------------------------------
Employer
Directed Participant Directed
-------- -----------------------------------------------
Terra
Terra Industries
Industries Inc.
Inc. Voluntary Equity
Common Stock Common Stock Income Intermediate
Fund Fund Fund Fund
<S> <C> <C> <C> <C>
ASSETS:
Investments, at fair value:
Terra Industries Inc.
Common Stock $10,196,188 $1,666,955 $ - $ -
Vista Growth and Income
Fund - - 6,906,992 -
Vista U.S. Government
Income Fund - - - 4,846,417
Fidelity Magellan Fund - - - -
Vista U.S. Government
Money Market Fund - - - -
Chase Bank Domestic
Liquidity Fund 51,766 232 - -
---------- ---------- ---------- ----------
Total investments at
fair value 10,247,954 1,667,187 6,906,992 4,846,417
Loans to participants - - - -
---------- ---------- ---------- ----------
Total investments 10,247,954 1,667,187 6,906,992 4,846,417
Employer contributions
receivable 22,349 - - -
Participant contributions
receivable - 10,661 44,166 28,936
Cash 4 27 8 13
---------- ---------- ---------- ----------
Total assets 10,270,307 1,677,875 6,951,166 4,875,366
LIABILITIES:
Accrued administrative
expenses - - 12,766 9,571
---------- ---------- ---------- ----------
Total liabilities - - 12,766 9,571
---------- ---------- ---------- ----------
Net assets available for benefits $10,270,307 $1,677,875 $6,938,400 $4,865,795
========== ========== ========== ==========
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1993
- - -------------------------------------------------------------------------------------------------------------------------
Participant Directed
-------------------------------------------------------------------
Money
Stock Market Participant
Fund Fund Loans Total
<S> <C> <C> <C> <C>
ASSETS:
Investments, at fair value:
Terra Industries Inc.
Common Stock $ - $ - $ - $11,863,143
Vista Growth and Income
Fund - - - 6,906,992
Vista U.S. Government
Income Fund - - - 4,846,417
Fidelity Magellan Fund 9,217,006 - - 9,217,006
Vista U.S. Government
Money Market Fund - 2,786,381 - 2,786,381
Chase Bank Domestic
Liquidity Fund - - - 51,998
---------- ---------- ---------- ----------
Total investments at
fair value 9,217,006 2,786,381 - 35,671,937
Loans to participants - - 1,116,198 1,116,198
---------- ---------- ---------- ----------
Total investments 9,217,006 2,786,381 1,116,198 36,788,135
Employer contributions
receivable - - - 22,349
Participant contributions
receivable 47,212 21,321 - 152,296
Cash 1 6,563 - 6,616
---------- ---------- ---------- ----------
Total assets 9,264,219 2,814,265 1,116,198 36,969,396
LIABILITIES:
Accrued administrative
expenses 16,974 5,552 - 44,863
---------- ---------- ---------- ----------
Total liabilities 16,974 5,552 - 44,863
---------- ---------- ---------- ----------
Net assets available for benefits $9,247,245 $2,808,713 $1,116,198 $36,924,533
========== ========== ========== ==========
</TABLE>
See notes to financial statements.
-4-
<PAGE> 6
TERRA INDUSTRIES INC.
EMPLOYEES' SAVINGS AND INVESTMENT PLAN
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1992
- - --------------------------------------------------------------------------------------------------------------
Employer
Directed Participant Directed
-------------- -----------------------------------------------
Terra
Terra Industries
Industries Inc.
Inc. Voluntary Equity
Common Stock Common Stock Income Intermediate
Fund Fund Fund Fund
<S> <C> <C> <C> <C>
ASSETS:
Investments, at fair value:
Terra Industries Inc.
Common Stock $5,299,269 $480,683 $ - $ -
Fidelity Equity Income Fund - - 4,944,269 -
Fidelity Intermediate Fund - - - 4,926,796
Fidelity Magellan Fund - - - -
Fidelity Cash Reserves Fund - - - -
Chase Bank Domestic
Liquidity Fund 89,288 236 - -
---------- -------- ---------- ----------
Total investments at
fair value 5,388,557 480,919 4,944,269 4,926,796
Loans to participants - - - -
---------- -------- ---------- ----------
Total investments 5,388,557 480,919 4,944,269 4,926,796
Employer contributions
receivable 60,409 - - -
Participant contributions
receivable - - 33,644 33,644
Cash - 18 - -
---------- -------- ---------- ----------
Total assets 5,448,966 480,937 4,977,913 4,960,440
LIABILITIES:
Accrued administrative
expenses - - 13,877 14,310
---------- -------- ---------- ----------
Total liabilities - - 13,877 14,310
---------- -------- ---------- ----------
Net assets available for benefits $5,448,966 $480,937 $4,964,036 $4,946,130
========== ======== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1992
- - -----------------------------------------------------------------------------------------------------------------
Participant Directed
-------------------------------------------------------------
Money
Stock Market Participant
Fund Fund Loans Total
<S> <C> <C> <C> <C>
ASSETS:
Investments, at fair value:
Terra Industries Inc.
Common Stock $ - $ - $ - $5,779,952
Fidelity Equity Income Fund - - - 4,944,269
Fidelity Intermediate Fund - - - 4,926,796
Fidelity Magellan Fund 6,907,256 - - 6,907,256
Fidelity Cash Reserves Fund - 3,095,490 - 3,095,490
Chase Bank Domestic
Liquidity Fund - 19,150 - 108,674
---------- ---------- ---------- -----------
Total investments at
fair value 6,907,256 3,114,640 - 25,762,437
Loans to participants - - 1,015,784 1,015,784
---------- ---------- ---------- ----------
Total investments 6,907,256 3,114,640 1,015,784 26,778,221
Employer contributions
receivable - - - 60,409
Participant contributions
receivable 43,456 29,438 - 140,182
Cash - - - 18
---------- ---------- ---------- -----------
Total assets 6,950,712 3,144,078 1,015,784 26,978,830
LIABILITIES:
Accrued administrative
expenses 19,633 8,986 - 56,806
---------- ---------- ---------- -----------
Total liabilities 19,633 8,986 - 56,806
---------- ---------- ---------- -----------
Net assets available for benefits $6,931,079 $3,135,092 $1,015,784 $26,922,024
========== ========== ========== ===========
</TABLE>
See notes to financial statements.
-5-
<PAGE> 7
TERRA INDUSTRIES INC.
EMPLOYEES' SAVINGS AND INVESTMENT PLAN
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1993
- - -----------------------------------------------------------------------------------------------------------
Employer
Directed Participant Directed
------------ ---------------------------------------
Terra
Terra Industries
Industries Inc.
Inc. Voluntary Equity
Common Stock Common Stock Income Intermediate
Fund Fund Fund Fund
<S> <C> <C> <C> <C>
Investment income:
Dividend, interest, and
other income $27,362 $4,671 $56,029 $267,222
Net appreciation in fair
value of investments 3,873,921 675,736 582,470 132,226
----------- ---------- ---------- ----------
Total investment
income 3,901,283 680,407 638,499 399,448
Employer contributions 1,319,912 - - -
Participant contributions - 282,350 1,030,059 697,542
----------- ---------- ---------- ----------
Total additions 5,221,195 962,757 1,668,558 1,096,990
Deductions:
Benefit payments 399,579 10,004 458,586 457,736
Administrative expenses - - 27,926 21,798
Interfund transfers/net
loans 275 (244,185) (792,318) 697,791
----------- ---------- ---------- ----------
Total deductions 399,854 (234,181) (305,806) 1,177,325
----------- ---------- ---------- ----------
Net increase (decrease) 4,821,341 1,196,938 1,974,364 (80,335)
Assets available for benefits:
Beginning of year 5,448,966 480,937 4,964,036 4,946,130
----------- ---------- ---------- ----------
End of year $10,270,307 $1,677,875 $6,938,400 $4,865,795
=========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1993
- - ------------------------------------------------------------------------------------------------
Participant Directed
--------------------------------------------------------
Money
Stock Market Participant
Fund Fund Loans Total
<S> <C> <C> <C> <C>
Investment income:
Dividend, interest, and
other income $642,871 $76,970 $59,277 $1,134,402
Net appreciation in fair
value of investments 1,066,860 - - 6,331,213
---------- ---------- ---------- -----------
Total investment
income 1,709,731 76,970 59,277 7,465,615
Employer contributions - - - 1,319,912
Participant contributions 1,097,071 543,010 - 3,650,032
---------- ---------- ---------- -----------
Total additions 2,806,802 619,980 59,277 12,435,559
Deductions:
Benefit payments 346,496 632,316 31,328 2,336,045
Administrative expenses 35,105 12,176 - 97,005
Interfund transfers/net
loans 109,035 301,867 (72,465) -
---------- ---------- ---------- -----------
Total deductions 490,636 946,359 (41,137) 2,433,050
---------- ---------- ---------- -----------
Net increase (decrease) 2,316,166 (326,379) 100,414 10,002,509
Assets available for benefits:
Beginning of year 6,931,079 3,135,092 1,015,784 26,922,024
---------- ---------- ---------- -----------
End of year $9,247,245 $2,808,713 $1,116,198 $36,924,533
========== ========== ========== ===========
</TABLE>
See notes to financial statements.
-6-
<PAGE> 8
TERRA INDUSTRIES INC.
EMPLOYEES' SAVINGS AND INVESTMENT PLAN
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1992
- - ------------------------------------------------------------------------------
Employer
Directed Participant Directed
------------ ------------------------------------
Terra
Terra Industries
Industries Inc.
Inc. Voluntary Equity
Common Stock Common Stock Income Intermediate
Fund Fund Fund Fund
<S> <C> <C> <C>
Investment income:
Dividend, interest, and
other income $1,854 $537 $175,293 $371,561
Net appreciation
(depreciation) in fair
value of investments (234,634) (55,423) 444,331 (83,676)
---------- -------- ---------- ----------
Total investment
income (232,780) (54,886) 619,624 287,885
Employer contributions 1,232,859 - - -
Participant contributions - 15,222 794,277 777,215
---------- -------- ---------- ----------
Total additions 1,000,079 (39,664) 1,413,901 1,065,100
Deductions:
Benefit payments 515,580 4,564 397,869 618,248
Administrative expenses - - 37,348 39,432
Interfund transfers/net
loans - (525,165) 112,505 (19,596)
---------- -------- ---------- ----------
Total deductions 515,580 (520,601) 547,722 638,084
---------- -------- ---------- ----------
Net increase (decrease) 484,499 480,937 866,179 427,016
Assets available for
benefits:
Beginning of year 4,964,467 - 4,097,857 4,519,114
---------- -------- ---------- ----------
End of year $5,448,966 $480,937 $4,964,036 $4,946,130
========== ======== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1992
- - ------------------------------------------------------------------------------
Participant Directed
------------------------------------------------
Money
Stock Market Participant
Fund Fund Loans Total
<S> <C> <C> <C> <C>
Investment income:
Dividend, interest, and
other income $745,208 $122,372 $109,945 $1,526,770
Net appreciation
(depreciation) in fair
value of investments (300,423) - - (229,825)
---------- ---------- ---------- -----------
Total investment
income 444,785 122,372 109,945 1,296,945
Employer contributions - - - 1,232,859
Participant contributions 1,082,660 767,045 - 3,436,419
---------- ---------- ---------- -----------
Total additions 1,527,445 889,417 109,945 5,966,223
Deductions:
Benefit payments 506,989 524,671 48,171 2,616,092
Administrative expenses 53,129 24,762 - 154,671
Interfund transfers/net
loans (400,940) 912,409 (79,213) -
---------- ---------- ---------- -----------
Total deductions 159,178 1,461,842 (31,042) 2,770,763
---------- ---------- ---------- -----------
Net increase (decrease) 1,368,267 (572,425) 140,987 3,195,460
Assets available for
benefits:
Beginning of year 5,562,812 3,707,517 874,797 23,726,564
---------- ---------- ---------- -----------
End of year $6,931,079 $3,135,092 $1,015,784 $26,922,024
========== ========== ========== ===========
</TABLE>
See notes to financial statements.
-7-
<PAGE> 9
TERRA INDUSTRIES INC.
EMPLOYEES' SAVINGS AND INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1993 AND 1992
A. DESCRIPTION OF PLAN
The following brief description of the Terra Industries Inc.
Employees' Savings and Investment Plan (the Plan) is provided
for general information only. Participants should refer to the
Plan Agreement for more complete information.
GENERAL - The Plan, established as of January 1, 1984, is a
defined contribution plan covering eligible employees of Terra
Industries Inc. and eligible subsidiaries and affiliates
(collectively, the Company). The Plan is subject to the
Employee Retirement Income Security Act of 1974 (ERISA) and is
administered by the Employee Benefit Committee (the Committee)
of the Company. The assets of the Plan are held by the Chase
Manhattan Bank, N.A., the trustee of the Plan.
PARTICIPATION - All active employees of the Company are
eligible for Plan participation on the first day of the month
following the date their employment commenced. Participation
in the Plan is voluntary.
PARTICIPANTS' ACCOUNTS - Each participant's account is credited
with the participant's contributions, the employer's matching
contributions and an allocation of fund earnings. A
participant's benefit is limited to the amount that can be
provided from the participant's account, subject to the
applicable vesting requirements.
CONTRIBUTIONS - Participants earning $64,245 and $62,345 or
less annually in 1993 and 1992, respectively, could elect to
contribute up to 10% of their annual compensation on a pretax
basis and 10% on an after-tax basis. Participants earning more
than $64,245 and $62,345 in 1993 and 1992, respectively, could
contribute up to 6% of their annual compensation on a combined
pretax and after-tax basis.
The maximum participant pretax contribution was $8,994 in 1993
and $8,728 in 1992.
Participants may elect to invest their contributions in one or
more of the five available participant directed investment
options.
EMPLOYER - The Company contributes an amount determined by its
Board of Directors, currently equal to one half of the
participants' contributions up to 6% of their annual
compensation for both 1993 and 1992. The contributions made by
the Company must be invested in the Terra Industries Inc.
Common Stock Fund. The Company may elect to make an additional
contribution, subject to certain limitations as defined in the
Plan, in such amount as its Board of Directors shall determine.
No such additional contributions were made in 1993 or 1992.
Employer contributions are reduced by the amount of any
participant forfeitures during the period. Participant
forfeitures amounted to $34,819 and $47,493 in 1993 and 1992,
respectively.
- 8 -
<PAGE> 10
MAXIMUM CONTRIBUTIONS PER PARTICIPANT - The sum of a
participant's contribution and employer matching contribution
cannot exceed the lesser of $30,000 or 25% of net compensation
of the participant. Net compensation is defined as total
participant compensation less any pretax contributions made by
the participant. Eligible compensation was limited to $235,840
and $228,860 per year 1993 and 1992, respectively.
VESTING - Participants are immediately fully vested in their
contributions and earnings on their voluntary contributions.
Employer contributions vest at a rate of 20% per year, until
fully vested after five years of service.
PARTICIPANT LOANS - Participants may borrow from the vested
balance of their individual contribution accounts subject to
maximum limitations as defined in the Plan. Loan repayments
are reinvested in the funds in accordance with the
participant's investment election at the time of repayment.
BENEFITS - Participants or their beneficiaries are eligible to
receive the value of their vested account balance upon the
occurrence of one of the following: early or normal
retirement; termination of employment; death or total
disability.
B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
VALUATION OF INVESTMENTS - Investments, except for loans to
participants, are reported at fair value, which is determined,
in the case of Terra Industries Inc.'s Common Stock, from the
latest available market quotations and, in the case of
investments in mutual funds, at quoted net asset value.
Dividend income is recorded on the ex-dividend date.
Participant loans are reported at the outstanding balance.
The Plan has investments in six funds. The net assets and net
investment income of the funds are allocated to the
participants in the Plan based upon each participant's
participation relative to the total participation in each of
the six investment funds. A summary description of each
investment fund follows:
TERRA INDUSTRIES INC. COMMON STOCK FUND (EMPLOYER DIRECTED)
- A fund invested primarily in Terra Industries Inc. Common
Stock which is limited to employer contributions only.
TERRA INDUSTRIES INC. VOLUNTARY COMMON STOCK FUND
(PARTICIPANT DIRECTED) - A fund invested primarily in Terra
Industries Inc. Common Stock.
EQUITY INCOME FUND (PARTICIPANT DIRECTED) - A fund invested
primarily in shares of Vista Growth and Income Fund, which
is comprised primarily of income producing equity
securities and securities convertible into such equity
securities.
INTERMEDIATE FUND (PARTICIPANT DIRECTED) - A fund invested
primarily in shares of Vista U.S. Government Income Fund,
which is comprised primarily of debt obligations backed by
the full faith and credit of the U.S. Government.
STOCK FUND (PARTICIPANT DIRECTED) - A fund invested
primarily in shares of Fidelity Magellan Fund, which is
comprised primarily of common stocks and which seeks long-
term capital appreciation.
MONEY MARKET FUND (PARTICIPANT DIRECTED) - A fund invested
primarily in shares of Vista U.S. Government Money Market
Fund so as to preserve capital and maintain a high degree
of liquidity.
- 9 -
<PAGE> 11
BENEFITS PAYABLE - The Plan's policy is to record benefit
payments upon distribution of balances to participants.
Benefits due and unpaid to retired and terminated participants
were $603,825 and $563,842 at December 31, 1993 and 1992,
respectively.
ADMINISTRATIVE EXPENSES - Administrative expenses are comprised
of charges relating to routine services provided by the Plan's
trustee and recordkeeping agent and fees associated with the
annual audit of the Plan's financial statements.
Administrative expenses are allocated to the investment funds,
other than the Terra Industries Inc. Common Stock Fund and the
Terra Industries Inc. Voluntary Common Stock Fund, based upon
the fair value of each fund's investment relative to the total
fair value of all investment funds to which expenses are
allocated.
C. INVESTMENTS
The fair value of the Plan's investments, other than loans to
participants, by basis of valuation, are presented in the
following tables. Investments that represent 5% or more of the
Plan's investments are separately identified.
<TABLE>
<CAPTION>
December 31, 1993
Number of
Shares or
Principal
Amount Fair Value
<S> <C> <C>
Investments at Fair Value as Determined
by Quoted Market Price:
Terra Industries Inc. Common Stock 1,555,822 $11,863,143
Vista Growth and Income Fund 225,350 6,906,992
Vista U.S. Government Income Fund 414,578 4,846,417
Fidelity Magellan Fund 130,092 9,217,006
Vista U.S. Government Money Market Fund 2,786,381 2,786,381
Chase Bank Domestic Liquidity Fund 51,998 51,998
-----------
$35,671,937
===========
</TABLE>
- 10 -
<PAGE> 12
<TABLE>
<CAPTION>
December 31, 1992
Number of
Shares or
Principal
Amount Fair Value
<S> <C> <C>
Investments at Fair Value as Determined
by Quoted Market Price:
Terra Industries Inc. Common Stock 1,216,832 $ 5,779,952
Fidelity Equity Income Fund 170,433 4,944,269
Fidelity Intermediate Bond Fund 473,275 4,926,796
Fidelity Magellan Fund 109,622 6,907,256
Fidelity Cash Reserves Fund 3,095,490 3,095,490
Chase Bank Domestic Liquidity Fund 108,674 108,674
-----------
$25,762,437
===========
</TABLE>
D. PLAN TERMINATION
The Company specifically reserves the right to amend or
terminate the Plan or to discontinue contributions at any time.
Upon termination, a participant's entire account will become
fully vested and the assets shall be administered in the manner
provided for in the Plan.
E. FEDERAL INCOME TAX STATUS
The Internal Revenue Service (IRS) has ruled that the Plan, as
established on January 1, 1984, meets the requirements of
Section 401 (a) of the Internal Revenue Code (the Code) and is
exempt from federal income taxes under Section 501 (a) of the
Code. A determination letter to this effect has been received
from the Internal Revenue Service, dated March, 1986. The Plan
administrator believes that the Plan, as amended January 1,
1993, is in compliance with current regulations. Therefore, no
provision for income taxes has been included in the Plan's
financial statements.
Plan income, participant pretax contributions and employer
contributions represent taxable income to the participating
employees at the time of distribution in accordance with IRS
regulations currently in effect.
- 11 -
<PAGE> 13
TERRA INDUSTRIES, INC.
EMPLOYEES' SAVINGS AND INVESTMENT PLAN
PN 333
EIN #52-1145429
<TABLE>
<CAPTION>
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
December 31, 1993
- - ------------------------------------------------------------------------------------------------------------------------
Column B Column C Column D Column E
Description of investment
Identity of issue, including collateral, rate
borrower, lessor or of interest, maturity date, Current
similar party par or maturity value Cost Value
<S> <C> <C> <C>
Common Stock:
- - -------------
* Terra Industries, Inc. 1,555,822 shares $7,809,225 $11,863,143
Mutual Funds:
- - -------------
* Vista Growth and Income Fund 225,350 shares 6,351,262 6,906,992
* Vista U.S. Government Income
Fund 414,578 shares 4,783,498 4,846,417
Fidelity Magellan Fund 130,092 shares 8,098,760 9,217,006
* Vista U.S. Government
Money Market Fund 2,786,381 shares 2,786,381 2,786,381
Other Investments:
- - ------------------
* Chase Bank Domestic
Liquidity Fund 51,998 shares 51,998 51,998
* Loans to Participants Principal balance of $1,116,198
bearing interest at rates ranging
from 8% to 14% and maturing
from January 1994 to
November 2022 - 1,116,198
* Party-In-Interest
</TABLE>
-12-
<PAGE> 14
TERRA INDUSTRIES, INC.
EMPLOYEES' SAVINGS AND INVESTMENT PLAN
PN 333
EIN #52-1145429
<TABLE>
<CAPTION>
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
- - ------------------------------------------------------------------------------------------------------------------------
Column A Column B Column C Column D
Identity of Purchase Selling
Party Involved Description of Asset Price Price
<S> <C> <C> <C>
Single Transactions:
- - --------------------
Fidelity Institutional Fidelity Equity Income
Retirement Services Company Fund $ - $4,928,930
Fidelity Institutional Fidelity Intermediate
Retirement Services Company Bond Fund - 4,955,858
Fidelity Institutional Fidelity Cash Reserves
Retirement Services Company Fund - 3,096,940
* Chase Manhattan Bank, Vista Growth and
N.A. Income Fund 4,929,484 -
* Chase Manhattan Bank, Vista U.S. Government
N.A. Income Fund 4,956,965 -
* Chase Manhattan Bank, Vista U.S. Government
N.A. Money Market Fund 3,098,047 -
* Party-In-Interest
</TABLE>
<TABLE>
<CAPTION>
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
- - -----------------------------------------------------------------------------------------------------------------
Column A Column G Column H Column I
Current Value
Identity of Cost of on Transaction Net Gain
Party Involved Asset Date or (Loss)
<S> <C> <C> <C>
Single Transactions:
- - --------------------
Fidelity Institutional
Retirement Services Company $4,337,639 $4,928,930 $591,291
Fidelity Institutional
Retirement Services Company 4,808,753 4,955,858 147,105
Fidelity Institutional
Retirement Services Company 3,096,940 3,096,940 -
* Chase Manhattan Bank,
N.A. 4,929,484 4,929,484 -
* Chase Manhattan Bank,
N.A. 4,956,965 4,956,965 -
* Chase Manhattan Bank,
N.A. 3,098,047 3,098,047 -
* Party-In-Interest
</TABLE>
-13-
<PAGE> 15
TERRA INDUSTRIES, INC.
EMPLOYEES' SAVINGS AND INVESTMENT PLAN
PN 333
EIN #52-1145429
<TABLE>
<CAPTION>
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
- - ------------------------------------------------------------------------------------------------------------------------
Column A Column B Column C Column D
Identity of Number of Number of
Party Involved Description of Asset Purchases Sales
<S> <C> <C> <C>
Series of Transactions:
* Terra Industries, Inc. Common Stock 58 26
Fidelity Institutional
Retirement Services Company Fidelity Magellan Fund 62 40
Fidelity Institutional Fidelity Equity Income
Retirement Services Company Fund - 1
Fidelity Institutional Fidelity Intermediate
Retirement Services Company Bond Fund 1 1
Fidelity Institutional Fidelity Cash
Retirement Services Company Reserves Fund 1 1
* Chase Manhattan Bank, N.A. Vista Growth and
Income Fund 55 33
* Chase Manhattan Bank, N.A. Vista U.S. Government
Income Fund 53 42
* Chase Manhattan Bank, N.A. Vista U.S. Government
Money Market Fund 61 46
* Chase Manhattan Bank, N.A. Chase Bank Domestic
Liquidity Fund 264 180
* Party-In-Interest
</TABLE>
<TABLE>
<CAPTION>
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1993
- - ---------------------------------------------------------------------------------------------------------------
Column A Column E Column F Column G
Total Dollar Total Dollar
Identity of Value of Value of Net Gain
Party Involved Purchases Sales or (Loss)
<S> <C> <C> <C>
Series of Transactions:
* Terra Industries, Inc. $1,751,807 $218,272 ($38,347)
Fidelity Institutional
Retirement Services Company 2,392,695 1,149,804 317,747
Fidelity Institutional
Retirement Services Company - 4,928,930 591,291
Fidelity Institutional
Retirement Services Company 5,397 4,955,858 147,105
Fidelity Institutional
Retirement Services Company 1,450 3,096,940 -
* Chase Manhattan Bank, N.A.
6,881,297 572,114 42,079
* Chase Manhattan Bank, N.A.
6,049,423 1,311,567 45,642
* Chase Manhattan Bank, N.A.
4,072,154 1,285,773 -
* Chase Manhattan Bank, N.A.
13,451,718 13,508,394 -
* Party-In-Interest
</TABLE>
-14-
<PAGE> 16
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration
Statement 33-46734 on Form S-8 of our report dated April 15, 1994,
appearing in this Annual Report on Form 11-K of the Terra
Industries Inc. Employees' Savings and Investment Plan for the year
ended December 31, 1993.
/S/ DELOITTE & TOUCHE
- - ---------------------
DELOITTE & TOUCHE
Omaha, Nebraska
June 17, 1994
-15-
|
|