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 fiscal 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 1-82
_____________
PHELPS DODGE EMPLOYEE SAVINGS PLAN
PHELPS DODGE CORPORATION
2600 North Central Avenue
Phoenix, Arizona 85004-3014
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of
1934, the Committee has duly caused this Annual Report to be signed by the
undersigned thereunto duly authorized.
PHELPS DODGE EMPLOYEE SAVINGS PLAN
Date: 6/23/94 By: /s/ John C. Replogle
____________________ _________________________________
John C. Replogle, Chairman
Benefits Administration Committee
<PAGE>
PHELPS DODGE EMPLOYEE SAVINGS PLAN
FINANCIAL STATEMENTS
* * *
DECEMBER 31, 1993 AND 1992
PHELPS DODGE EMPLOYEE SAVINGS PLAN
INDEX
Page
Report of Independent Accountants 5
Statement of Financial Condition 6
Statement of Financial Condition by Fund 7-8
Statement of Income and Changes in Plan Equity 9
Statement of Income and Changes in Plan Equity by Fund 10-12
Notes to Financial Statements 13-16
Schedules
I. Schedule of Investments at December 31, 1993 17
<PAGE>
Report of Independent Accountants
June 17, 1994
To the Benefits Administration Committee and Participants
of the Phelps Dodge Employee Savings Plan
In our opinion, the financial statements listed in the accompanying index
present fairly, in all material respects, the financial position of the
Phelps Dodge Employee Savings Plan at December 31, 1993 and 1992, and the
results of its operations and the changes in its plan equity for each of the
three years in the period ended December 31, 1993, in conformity with
generally accepted accounting principles. These financial statements are
the responsibility of the Benefits Administration Committee (the Committee);
our responsibility is to express an opinion on these financial statements
based on our audits. We conducted our audits of these statements in
accordance with generally accepted auditing standards which 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, assessing the accounting principles used and
significant estimates made by the Committee, and evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for the opinion expressed above.
PRICE WATERHOUSE
<PAGE>
PHELPS DODGE EMPLOYEE SAVINGS PLAN
STATEMENT OF FINANCIAL CONDITION
DECEMBER 31,
-----------------------
1993 1992
------- -------
(in thousands)
PLAN ASSETS
-----------
Investments, at Current Value
(Cost: $133,041 in 1993
and $114,548 in 1992):
Phelps Dodge Common Stock $ 26,691 $ 24,727
Mutual Funds 62,396 44,113
Other Common Stock 283 449
Money Market Securities 21,406 20,817
Guaranteed Investment Contracts 38,293 36,112
-------- --------
149,069 126,218
-------- --------
Receivables:
Employee Contributions 1,056 1,009
Employer Contributions 7,894 7,468
-------- --------
8,950 8,477
-------- --------
Loans to Participants 8,477 6,293
-------- --------
Total Plan Assets 166,496 140,988
-------- --------
LIABILITIES AND PLAN EQUITY
---------------------------
Accrued Liabilities (1,461) (1,026)
-------- --------
Net Assets Representing Plan Equity $165,035 $139,962
======== ========
See Accompanying Notes to Financial Statements
<PAGE>
<TABLE>
PHELPS DODGE EMPLOYEE SAVINGS PLAN
STATEMENT OF FINANCIAL CONDITION BY FUND
DECEMBER 31, 1993
(in thousands)
<CAPTION>
PHELPS OCCIDENTAL
DODGE PETROLEUM
MONEY INTEREST EQUITY GROWTH COMMON COMMON
MARKET INCOME INCOME STOCK STOCK STOCK LOAN
PLAN ASSETS FUND FUND FUND FUND FUND FUND FUND TOTAL
----------- ------ -------- ------ ------ ----- ---------- ---- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investments, at Current
Value:
Phelps Dodge Common
Stock 26,691 26,691
Mutual Funds 23,104 39,292 62,396
Other Common Stock 283 283
Money Market Securities 21,406 21,406
Guaranteed Investment
Contracts 38,293 38,293
------- ------- ------- ------- ------- ---- --------
21,406 38,293 23,104 39,292 26,691 283 0 149,069
------- ------- ------- ------- ------- ---- --------
Receivables:
Employee Contributions 166 270 170 295 155 1,056
Employer Contributions 1,150 1,953 1,400 2,246 1,145 7,894
------- ------- -------- ------- ------- --------
1,316 2,223 1,570 2,541 1,300 8,950
------- ------- ------- ------- ------- --------
Loans to Participants 8,477 8,477
------ --------
Total Plan Assets 22,722 40,516 24,674 41,833 27,991 283 8,477 166,496
------- ------- ------- ------- ------- ---- ------ --------
LIABILITIES AND PLAN
EQUITY
--------------------
Accrued Liabilities (552) (209) (59) (180) (429) (1) (31) (1,461)
------- ------- ------- ------- ------- ---- ------ --------
Net Assets Representing
Plan Equity $22,170 $40,307 $24,615 $41,653 $27,562 $282 $8,446 $165,035
======= ======= ======= ======= ======= ==== ====== ========
</TABLE>
See Accompanying Notes to Financial Statements
<PAGE>
<TABLE>
PHELPS DODGE EMPLOYEE SAVINGS PLAN
STATEMENT OF FINANCIAL CONDITION BY FUND
DECEMBER 31, 1992
(in thousands)
<CAPTION>
PHELPS OCCIDENTAL
DODGE PETROLEUM
MONEY INTEREST EQUITY GROWTH COMMON COMMON
MARKET INCOME INCOME STOCK STOCK STOCK LOAN
PLAN ASSETS FUND FUND FUND FUND FUND FUND FUND TOTAL
----------- ------ -------- ------ ------ ------ ---------- ---- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investments, at Current
Value:
Phelps Dodge Common
Stock 24,727 $ 24,727
Mutual Funds $15,974 $28,139 44,113
Other Common Stock $449 449
Money Market Securities $20,817 20,817
Guaranteed Investment
Contracts $36,112 36,112
------- ------- ------- ------- ------- ---- --------
20,817 36,112 15,974 28,139 24,727 449 0 126,218
------- ------- ------- ------- ------- ---- --------
Receivables:
Employee Contributions 194 285 136 243 151 1,009
Employer Contributions 1,435 2,007 1,086 1,813 1,127 7,468
------- ------- ------- ------- ------- --------
1,629 2,292 1,222 2,056 1,278 8,477
------- ------- ------- ------- ------- --------
Loans to Participants $6,293 6,293
------ --------
Total Plan Assets 22,446 38,404 17,196 30,195 26,005 449 6,293 140,988
------- ------- ------- ------- ------- ---- ------ --------
LIABILITIES AND PLAN
EQUITY
--------------------
Accrued Liabilities (127) (199) (97) (62) (535) (6) (1,026)
------- ------- ------- ------- ------- ---- ------ --------
Net Assets Representing
Plan Equity $22,319 $38,205 $17,099 $30,133 $25,470 $449 $6,287 $139,962
======= ======= ======= ======= ======= ==== ====== ========
</TABLE>
See Accompanying Notes to Financial Statements
<PAGE>
PHELPS DODGE EMPLOYEE SAVINGS PLAN
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
YEAR ENDED DECEMBER 31,
-----------------------
1993 1992 1991
---- ---- ----
(in thousands)
Investment Income:
Realized Gains (Losses) on Investments $ 262 $ 805 $ 530
Change in Unrealized Appreciation
(Depreciation) 6,499 4,262 6,414
Dividends 5,980 5,694 3,655
Interest 3,617 3,191 2,685
-------- -------- --------
16,358 13,952 13,284
-------- -------- --------
Contributions:
Employee 11,378 8,779 6,086
Employer 11,602 10,278 9,180
-------- -------- --------
22,980 19,057 15,266
-------- -------- --------
Transfer of Hourly Plan Assets 77 15,861 62
Transfer of ESOP Assets 3,665
-------- -------- --------
Total Additions 39,415 52,535 28,612
-------- -------- --------
Distributions to Participants and
Beneficiaries (14,228) (12,317) (6,495)
Other Changes, Net (114) (271) 33
-------- -------- --------
Total Deductions (14,342) (12,588) (6,462)
-------- -------- --------
Increase in Net Assets During the Year 25,073 39,947 22,150
Net Assets Representing Plan Equity:
Beginning of Year 139,962 100,015 77,865
-------- -------- --------
End of Year $165,035 $139,962 $100,015
======== ======== ========
See Accompanying Notes to Financial Statements
<PAGE>
<TABLE>
PHELPS DODGE EMPLOYEE SAVINGS PLAN
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY BY FUND
YEAR ENDED DECEMBER 31, 1993
(in thousands)
<CAPTION>
PHELPS OCCIDENTAL
DODGE PETROLEUM
MONEY INTEREST EQUITY GROWTH COMMON COMMON
MARKET INCOME INCOME STOCK STOCK STOCK LOAN
PLAN ASSETS FUND FUND FUND FUND FUND FUND FUND TOTAL
----------- ------ -------- ------ ------ ------ ---------- ---- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment Income:
Realized Gains (Losses)
on Investments $ 189 $ 332 $ (304) $ 45 $ 262
Change in Unrealized
Appreciation
(Depreciation) 2,758 3,394 356 (9) 6,499
Dividends $ 603 808 3,658 890 21 5,980
Interest 2 $ 2,917 1 2 5 55 $ 635 3,617
------- ------- ------- ------- ------- ------- ------- --------
605 2,917 3,756 7,386 947 112 635 16,358
------- ------- ------- ------- ------- ------- ------- --------
Contributions:
Employee 1,862 3,034 1,721 2,933 1,828 11,378
Employer 1,809 2,968 1,947 3,156 1,722 11,602
------- ------- ------- ------- ------- --------
3,671 6,002 3,668 6,089 3,550 22,980
------- ------- ------- ------- ------- --------
Transfer of Hourly Plan
Assets 54 6 2 15 77
------- ------- ------- ------- ------- ------- ------- --------
Total Additions 4,276 8,973 7,430 13,477 4,497 112 650 39,415
------- ------- ------- ------- ------- ------- ------- --------
Distribution to
Participants and
Beneficiaries (2,590) (5,042) (1,587) (2,501) (2,135) (169) (204) (14,228)
Other Charges, Net 17 13 (22) (27) (19) (72) (4) (114)
Loans to Participants,
Net of Repayments (499) (498) (215) (307) (198) 1,717
Fund Exchanges, Net (1,353) (1,344) 1,910 878 (53) (38)
------- ------- ------- ------- ------- ------- ------- --------
Total Deductions (4,425) (6,871) 86 (1,957) (2,405) (279) 1,509 (14,342)
------- ------- ------- ------- ------- ------- ------- --------
Increase (Decrease) in
Net Assets During
During the Year (149) 2,102 7,516 11,520 2,092 (167) 2,159 25,073
Net Assets Representing
Plan Equity:
Beginning of Year 22,319 38,205 17,099 30,133 25,470 449 6,287 139,962
------- ------- ------- ------- ------- ------- ------- --------
End of Year $22,170 $40,307 $24,615 $41,653 $27,562 $ 282 $ 8,446 $165,035
======= ======= ======= ======= ======= ======= ======= ========
</TABLE>
See Accompanying Notes to Financial Statements
<PAGE>
<TABLE>
PHELPS DODGE EMPLOYEE SAVINGS PLAN
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY BY FUND
YEAR ENDED DECEMBER 31, 1992
(in thousands)
<CAPTION>
PHELPS OCCIDENTAL
DODGE PETROLEUM
MONEY INTEREST EQUITY GROWTH COMMON COMMON
MARKET INCOME INCOME STOCK STOCK STOCK LOAN
PLAN ASSETS FUND FUND FUND FUND FUND FUND FUND TOTAL
----------- ------ -------- ------ ------ ------ ---------- ---- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment Income:
Realized Gains (Losses) on
Investments $ 63 $ (104) $ 835 $ 11 $ 805
Change in Unrealized
Appreciation
(Depreciation) 1,316 (1,821) 4,790 (23) 4,262
Dividends $ 686 526 3,783 671 28 5,694
Interest 4 $ 2,645 2 3 5 $ 532 3,191
------- ------- ------- ------- ------- ---- ------ --------
690 2,645 1,907 1,861 6,301 16 532 13,952
------- ------- ------- ------- ------- ---- ------ --------
Contributions:
Employee 1,569 2,497 1,222 2,333 1,158 8,779
Employer 1,967 2,816 1,475 2,543 1,477 10,278
------- ------- ------- ------- ------- --------
3,536 5,313 2,697 4,876 2,635 19,057
------- ------- ------- ------- ------- --------
Transfer of Hourly Plan Assets 3,843 4,481 1,664 3,225 1,804 844 15,861
Transfer of ESOP Assets 222 222 101 155 2,965 3,665
------- ------- ------- ------- ------- ---- ------ --------
Total Additions 8,291 12,661 6,369 10,117 13,705 16 1,376 52,535
------- ------- ------- ------- ------- ---- ------ --------
Distributions to Participants
and Beneficiaries (2,956) (3,146) (1,218) (1,750) (2,891) (72) (284) (12,317)
Other Changes, Net (65) (72) (26) (39) (22) (47) (271)
Loans to Participants, Net of
Repayments (921) (494) (182) 87 59 1,451
Fund Exchanges, Net (620) (1,408) 390 436 1,296 (94)
------- ------- ------- ------- ------- ---- ------ --------
Total Deductions (4,562) (5,120) (1,036) (1,266) (1,558) (166) 1,120 (12,588)
------- ------- ------- ------- ------- ---- ------ --------
Increase (Decrease) in Net
Assets During the Year 3,729 7,541 5,333 8,851 12,147 (150) 2,496 39,947
Net Assets Representing Plan
Equity:
Beginning of Year 18,590 30,664 11,766 21,282 13,323 599 3,791 100,015
------- ------- ------- ------- ------- ---- ------ --------
End of Year $22,319 $38,205 $17,099 $30,133 $25,470 $449 $6,287 $139,962
======= ======= ======= ======= ======= ==== ====== ========
</TABLE>
See Accompanying Notes to Financial Statements
<PAGE>
<TABLE>
PHELPS DODGE EMPLOYEE SAVINGS PLAN
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY BY FUND
YEAR ENDED DECEMBER 31, 1991
(in thousands)
<CAPTION>
PHELPS OCCIDENTAL
DODGE PETROLEUM
MONEY INTEREST EQUITY GROWTH COMMON COMMON
MARKET INCOME INCOME STOCK STOCK STOCK LOAN
PLAN ASSETS FUND FUND FUND FUND FUND FUND FUND OTHER TOTAL
----------- ------ -------- ------ ------ ------ ---------- ---- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investment Income:
Realized Gains on
Investments $ 142 $ 160 $ 211 $ 17 $ 530
Change in Unrealized
Appreciation
(Depreciation) 1,681 3,213 1,538 (18) 6,414
Dividends $ 910 458 1,706 542 39 3,655
Interest 4 $ 2,297 3 2 5 1 $ 357 $ 16 2,685
------- ------- ------- ------- ------- ------ ------ ------ --------
914 2,297 2,284 5,081 2,296 39 357 16 13,284
------- ------- ------- ------- ------- ------ ------ ------ --------
Contributions:
Employee 1,181 1,921 851 1,487 646 6,086
Employer 1,919 2,747 1,259 2,242 1,013 9,180
------- ------- ------- ------- ------- --------
3,100 4,668 2,110 3,729 1,659 15,266
------- ------- ------- ------- ------- --------
Transfer of Hourly Plan
Assets 37 26 4 22 (20) (7) 62
------- ------- ------- ------- ------- ------ --------
Total Additions 4,051 6,991 4,398 8,832 3,935 39 350 16 28,612
------- ------- ------- ------- ------- ------ ------ ------ --------
Distributions to
Participants and
Beneficiaries (1,314) (2,551) (568) (364) (1,210) (77) (130) (281) (6,495)
Other Charges, Net 8 11 8 18 8 (2) (18) 33
Loans to Participants,
Net of Repayments (587) (297) (4) 69 98 721
Fund Exchanges, Net 1,350 756 (946) (778) (308) (74)
------- ------- ------- ------- ------- ------ ------ ------ --------
Total Deductions (543) (2,081) (1,510) (1,055) (1,412) (151) 589 (299) (6,462)
------- ------- ------- ------- ------- ------ ------ ------ --------
Increase (Decrease) in
Net Assets
During the Year 3,508 4,910 2,888 7,777 2,523 (112) 939 (283) 22,150
Net Assets Representing
Plan Equity:
Beginning of Year 15,082 25,754 8,878 13,505 10,800 711 2,852 283 77,865
------- ------- ------- ------- ------- ------ ------ ------ --------
End of Year $18,590 $30,664 $11,766 $21,282 $13,323 $ 599 $3,791 $100,015
======= ======= ======= ======= ======= ====== ====== ====== ========
</TABLE>
See Accompanying Notes to Financial Statements
<PAGE>
PHELPS DODGE EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - DESCRIPTION OF PLAN
a. General:
The Phelps Dodge Corporation Savings and Deferred Profit Sharing
Plan (the Plan) is a defined contribution plan which was established by Phelps
Dodge Corporation (the Corporation) effective January 1, 1953, for the benefit
of eligible salaried employees (the Participants).
On July 1, 1992, the Phelps Dodge Corporation Savings Plan for
Hourly Employees was merged into the Plan and the Plan name was changed to
Phelps Dodge Employee Savings Plan. In June 1992 the Plan was amended to
accept the transfer of assets from the Phelps Dodge Employee Stock Ownership
Plan (ESOP) for Participants who elected such a transfer after the termination
of the ESOP on July 1, 1992.
The Plan is subject to certain provisions of the Employee Retirement
Income Security Act of 1974 (ERISA). A brief description of the Plan is
included in the following paragraphs. Participants should refer to the Plan
document for a complete description of Plan provisions.
b. Administration:
The Plan is sponsored by the Corporation and administered by the
Benefits Administration Committee (the Committee) composed of not less than
three individuals who are appointed by the Corporation's Board of Directors.
Effective May 1, 1992, Plan assets were transferred from a trust
(the Trust) administered by Valley National Bank (the former Trustee) to M & I
Marshall and Ilsley Trust Company of Arizona (the Trustee). The Trust is
comprised of the following investment funds: Money Market Fund, Interest
Income Fund, formerly named the Guaranteed Investment Contract (GIC) Fund,
Equity Income Fund, Growth Stock Fund and Phelps Dodge Common Stock Fund. In
addition, certain participants hold assets in the Occidental Petroleum Common
Stock Fund as a result of the transfer of assets from the Columbian Chemicals
Company plan. Participant loans are held in a separate Loan Fund.
Fees and expenses of the Trust, other than brokerage commissions and
taxes paid in connection with security transactions, and other expenses
relating to the administration of the Plan are currently paid by the
Corporation.
c. Contributions:
A profit sharing contribution made for certain salaried employee
participants by the Corporation (the Company Profit Sharing Contribution) for
any year is limited to the lesser of 4% of Consolidated Net Income of the
Corporation or 7 1/2% of the aggregate salaries of Participants and could be
made only to the extent that it did not reduce Consolidated Net Income below
$1.00 ($.50 after adjustment for two-for-one stock split on June 10, 1992) per
common share for such year after provision for payment of preferred and
preference share dividends.
From July 1, 1986 to March 31, 1989, Participants were allowed to
make voluntary contributions from 1% to 10% of their base salary on an
after-tax basis (After-tax Contributions) to the Plan by payroll deduction.
Effective April 1, 1989, these voluntary After-tax Contributions were
eliminated and Participants became eligible to make pretax contributions
(Pretax Contributions), subject to certain limitations, equal to 2% - 10% of
their base salaries. Pretax Contributions are eligible for a matching
contribution from the Corporation (Company Matching Contribution) equal to 50%
of the first 5% of the base salary deferred. Effective January 1, 1991,
Participants may elect to have contributions invested in one or more of the
investment funds in multiples of 1%.
d. Distributions:
Participants' interests in the Trust become distributable upon
termination of their service with the Corporation or to their beneficiaries in
the event of their death. The distribution may be a single lump sum
distribution or a series of substantially equal annual, quarterly or monthly
cash installments beginning no earlier than age 55 and continuing over a
period not to exceed 10 years, at the election of the Participant or
beneficiary. Distributions are generally made in cash, although distributions
from the Phelps Dodge Common Stock Fund and Occidental Petroleum Stock Fund
may also be made in common shares. Effective January 1, 1991, these
distributions are based upon the market price of the shares at the end of the
month prior to the time of distribution.
Participants may withdraw their After-tax Contributions and earnings
thereon at any time. The Plan also provides, with certain limitations, for
hardship withdrawals from employee Pretax, Company Matching and Company Profit
Sharing Contributions; however, earnings on any of these contributions are
ineligible for hardship withdrawal. Hardship withdrawals are not granted
unless other financial resources are not reasonably available, including
after-tax savings or a loan from the Plan. All withdrawals or distributions
are made in accordance with procedures outlined in the Plan document.
e. Loans:
Participants may borrow amounts as provided in the Plan. Such loans
are repayable over a maximum of 5 years with the exception of loans for the
purchase of a primary residence which may extend to 15 years. All loans bear
interest at market rates.
f. Plan Termination:
The Plan may be amended or terminated at any time by the
Corporation. No such action may cause any portion of the Trust to revert to
the Corporation or to be used or diverted for any purpose other than for the
exclusive benefit of Participants or their beneficiaries.
g. Reclassification:
For comparative purposes, certain prior year amounts have been
reclassified to conform with the current year presentation.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
The financial statements of the Plan are presented on a current
value basis. The current values of the Corporation's common stock and
Occidental Petroleum common stock are based upon the closing market price on
the New York Stock Exchange on the valuation date. The current values of the
other funds are based upon their respective fair market values on the
valuation date. Loans are valued at amounts advanced to participants less
principal payments received.
Security transactions are recorded on a trade date basis. Expenses
paid by the Plan in connection with such transactions include brokerage
commissions and taxes which are included in the cost of securities purchased
and deducted from the proceeds of securities sold. Realized gains (losses)
resulting from the sale of investments are based upon average carrying value.
The change in unrealized appreciation (depreciation) is determined by
comparison of average carrying value to current value. Dividend income is
recognized on the ex-dividend date. Interest income is recognized as earned.
Employer and employee contributions are recognized on the accrual basis.
NOTE 3 - RELATED PARTY TRANSACTIONS:
The Trustee invests in the Corporation's common stock in accordance
with the provisions of the Plan. The following is a summary of transactions
in the Corporation's common stock:
Year Ended December 31,
---------------------------------
1993 1992 1991
-------- -------- --------
(in thousands)
Description
- --------------------------------
Cost of shares purchased $ 6,705 $ 5,714 $ 2,930
Number of shares purchased 143 129 45
Proceeds from shares sold $ 3,613 $ 2,680 $ 1,463
Number of shares sold 80 63 23
Value of shares distributed $ 1,124 $ 1,178 $ 696
Number of shares distributed 24 27 11
NOTE 4 - TAX STATUS:
The Internal Revenue Service (IRS) has determined that the Plan in
effect prior to July 1, 1986, met the requirements of Section 401(a) of the
Internal Revenue Code and that the earnings of the Trust are exempt from
taxation under Section 501(a) of the Code. The Corporation believes that Plan
amendments since that date will not change that status and intends to file for
a redetermination by the IRS that the Plan, as amended, continues to satisfy
such requirements. Participants are not taxed currently on their share of
Pretax, Company Matching or Company Profit Sharing Contributions to the Plan
or on the income earned by the Trust.
NOTE 5 - TRANSFERS OF PRIOR PLAN ASSETS:
Effective July 1, 1992, the Corporation merged the Phelps Dodge
Savings Plan for Hourly Employees into the Plan and assets of approximately
$16,100,000 were transferred and invested as directed by the Participants.
Effective July 1, 1992, the Corporation terminated its Employee
Stock Ownership Plan and provided participants with options to receive a
distribution or transfer those assets to the Plan. Approximately $741,000 and
59,800 shares of Phelps Dodge Common Stock were transferred to the Plan and
invested as directed by Participants.
NOTE 6 - PARTICIPATION IN THE PLAN:
The following is a summary of the number of Participants invested in
the investment options offered by the Plan as of December 31, 1993:
Money Market Fund 2,620
Interest Income Fund 3,324
Equity Income Fund 2,583
Growth Stock Fund 3,178
Phelps Dodge Common Stock Fund 2,460
Occidental Petroleum Common Stock Fund 47
NOTE 7 - REALIZED GAINS (LOSSES) ON INVESTMENTS:
Year Ended December 31, 1993
-----------------------------------
(in thousands)
Carrying Realized
Proceeds Value Gains (Losses)
-------- -------- --------------
Investments:
Phelps Dodge Common Stock $ 4,738 $ 5,042 $ (304)
Mutual Funds and Other
Common Stocks 4,947 4,381 566
-------- -------- --------
$ 9,685 $ 9,423 $ 262
======== ======== ========
Year Ended December 31, 1992
-----------------------------------
(in thousands)
Carrying Realized
Proceeds Value Gains (Losses)
-------- --------- -------------
Investments:
Phelps Dodge Common Stock $ 3,858 $ 3,023 $ 835
Mutual Funds and Other
Common Stocks 4,063 4,093 (30)
-------- -------- --------
$ 7,921 $ 7,116 $ 805
======== ======== ========
Year Ended December 31, 1991
-----------------------------------
(in thousands)
Carrying Realized
Proceeds Value Gains (Losses)
-------- --------- -------------
Investments:
Phelps Dodge Common Stock $ 2,187 $ 1,976 $ 211
Mutual Funds and Other
Common Stocks 4,216 3,897 319
-------- -------- --------
$ 6,403 $ 5,873 $ 530
======== ======== ========
SCHEDULE I
PHELPS DODGE EMPLOYEE SAVINGS PLAN
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1993
(in thousands)
NUMBER OF CURRENT
SHARES DESCRIPTION OF INVESTMENT COST VALUE
- --------- ------------------------- ---- -------
MONEY MARKET FUND
21,406 Money Market Securities $ 21,406 $ 21,406
INTEREST INCOME FUND
38,293 Insurance Company Contracts And Other
Fixed Income Securities 38,293 38,293
EQUITY INCOME FUND
683 Mutual Funds 18,701 23,104
GROWTH STOCK FUND
555 Mutual Funds 35,147 39,292
PHELPS DODGE COMMON STOCK FUND
548 Phelps Dodge Corporation Common Stock 19,161 26,691
OCCIDENTAL PETROLEUM COMMON STOCK FUND
16 Occidental Petroleum Company Common Stock 333 283
-------- --------
TOTAL INVESTMENTS $133,041 $149,069
======== ========
LOAN FUND
Loans to Participants $ 8,477 $ 8,477
======== ========
<PAGE>
Consent of Independent Accountants
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 No. 33-226442 of the Phelps Dodge Employee Savings
Plan of our report dated June 17, 1994 appearing on page 5 of this Form
11-K.
PRICE WATERHOUSE
Phoenix, Arizona
June 22, 1994
