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, 1994
--------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 [NO FEE REQUIRED]
For the transition period from to
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Commission file number 1-82
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PHELPS DODGE EMPLOYEE SAVINGS PLAN
----------------------------------
PHELPS DODGE CORPORATION
------------------------
2600 North Central Avenue
Phoenix, Arizona 85004-3014
<PAGE>
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: June 29, 1995 By: John C. Replogle
------------------------ ---------------------------------
John C. Replogle, Chairman
Benefits Administration Committee
<PAGE>
PHELPS DODGE EMPLOYEE SAVINGS PLAN
----------------------------------
FINANCIAL STATEMENTS
--------------------
* * *
DECEMBER 31, 1994 AND 1993
--------------------------
<PAGE>
PHELPS DODGE EMPLOYEE SAVINGS PLAN
----------------------------------
INDEX
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Page
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Report of Independent Accountants 5
Statement of Net Assets Available For Benefits,
with Fund Information 6-7
Statement of Changes in Net Assets Available
for Benefits, with Fund Information 8-10
Notes to Financial Statements 11-15
Schedules
I. Schedule of Investments at December 31, 1994 16
Report of Independent Accountants
June 16, 1995
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 net assets available for benefits
of the Phelps Dodge Employee Savings Plan at December 31, 1994 and 1993, and the
changes in its net assets available for benefits for each of the three years in
the period ended December 31, 1994, 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.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information included in
Schedule I is presented for purposes of additional analysis and is not a
required part of the basic financial statements but is additional information
required by ERISA. The Fund Information in the statement of net assets available
for benefits and the statement of changes in net assets available for benefits
is presented for purposes of additional analysis rather than to present the net
assets available for plan benefits and changes in net assets available for
benefits of each fund. Schedule I and the Fund Information 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.
PRICE WATERHOUSE LLP
Phoenix, Arizona
June 16, 1995
<PAGE>
<TABLE>
<CAPTION>
PHELPS DODGE EMPLOYEE SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1994
(in thousands)
PHELPS OCCIDENTAL
DODGE PETROLEUM
MONEY INTEREST EQUITY GROWTH COMMON COMMON
MARKET INCOME INCOME STOCK STOCK STOCK LOAN
ASSETS FUND FUND FUND FUND FUND FUND FUND TOTAL
------ -------- --------- --------- --------- --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investments, at Current Value
(cost basis $165,321):
Common Stocks $37,644 $278 $37,922
Mutual Funds $21,237 $26,095 $42,660 89,992
Guaranteed Investment
Contracts $42,151 42,151
Loans to Participants $10,944 10,944
--------- --------- --------- --------- --------- --------- --------- ---------
21,237 42,151 26,095 42,660 37,644 278 10,944 181,009
--------- --------- --------- --------- --------- --------- --------- ---------
Receivables:
Employee Contributions 163 265 194 319 206 1,147
Employer Contributions 1,280 1,887 1,536 2,402 1,575 8,680
--------- --------- --------- --------- --------- ---------
1,443 2,152 1,730 2,721 1,781 9,827
--------- --------- --------- --------- --------- ---------
Total Assets 22,680 44,303 27,825 45,381 39,425 278 10,944 190,836
--------- --------- --------- --------- --------- --------- --------- ---------
LIABILITIES
Accrued Liabilities (241) (239) (66) (167) (279) (34) (1,026)
--------- --------- --------- --------- --------- --------- --------- ---------
NET ASSETS AVAILABLE
FOR BENEFITS $22,439 $44,064 $27,759 $45,214 $39,146 $ 278 $ 10,910 $ 189,810
========= ========= ========= ========= ========= ========= ========= =========
See Accompanying Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PHELPS DODGE EMPLOYEE SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1993
(in thousands)
PHELPS OCCIDENTAL
DODGE PETROLEUM
MONEY INTEREST EQUITY GROWTH COMMON COMMON
MARKET INCOME INCOME STOCK STOCK STOCK LOAN
ASSETS FUND FUND FUND FUND FUND FUND FUND TOTAL
------ -------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investments, at Current Value
(cost basis $133,041):
Common Stocks $26,691 $283 $ 26,974
Mutual Funds $21,406 $23,104 $39,292 83,802
Guaranteed Investment
Contracts $38,293 38,293
Loans to Participants $8,477 8,477
------- ------- ------- ------- ------- ---- ------ --------
21,406 38,293 23,104 39,292 26,691 283 8,477 157,546
------- ------- ------- ------- ------- ---- ------ --------
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
------- ------- ------- ------- ------- ---- --------
Total Assets 22,722 40,516 24,674 41,833 27,991 283 8,477 166,496
------- ------- ------- ------- ------- ---- ------ --------
LIABILITIES
Accrued Liabilities (552) (209) (59) (180) (429) (1) (31) (1,461)
------- ------- ------- ------- ------- ---- ------ ---------
NET ASSETS AVAILABLE
FOR BENEFITS $22,170 $40,307 $24,615 $41,653 $27,562 $282 $8,446 $165,035
======= ======= ======= ======= ======= ==== ====== ========
See Accompanying Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PHELPS DODGE EMPLOYEE SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
YEAR ENDED DECEMBER 31, 1994
(in thousands)
PHELPS OCCIDENTAL
DODGE PETROLEUM
MONEY INTEREST EQUITY GROWTH COMMON COMMON
MARKET INCOME INCOME STOCK STOCK STOCK LOAN
FUND FUND FUND FUND FUND FUND FUND TOTAL
-------- --------- --------- --------- --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment Income:
Realized Gains (Losses) $ (89) $ (139) $ 565 $ 7 $ 344
on Investments
Change in Unrealized
Appreciation
(Depreciation) (2,329) (2,389) 6,653 31 1,966
Dividends $ 813 2,444 1,667 938 15 5,877
Interest 1 $ 2,743 1 1 7 $ 802 3,555
------- ------- ------- ------ ------- ------ ------- --------
814 2,743 27 (860) 8,163 53 802 11,742
------- ------- ------- ------- ------- ------ ------- --------
Contributions:
Employee 1,626 2,902 2,036 3,466 1,844 11,874
Employer 1,848 2,836 2,171 3,470 2,134 12,459
------- ------- ------- ------- ------- ------
3,474 5,738 4,207 6,936 3,978 24,333
------- ------- ------- ------- ------- ------
Transfer of Hourly
Plan Assets 33 4 7 7 6 57
------- ------- ------- ------- ------- ------ ------- --------
Total Additions 4,321 8,481 4,238 6,083 12,148 53 808 36,132
------- ------- ------- ------- ------- ------ ------- --------
Distributions to
Participants
and Beneficiaries (2,381) (3,216) (1,460) (1,883) (1,823) (41) (524) (11,328)
Other Charges, Net 2 7 3 4 1 (16) (30) (29)
Loans to Participants,
Net of Repayments (379) (450) (289) (481) (611) 2,210
Fund Exchanges, Net (1,294) (1,065) 652 (162) 1,869
-------- ------- ------- ------- ------- ------ ------- --------
Total Deductions (4,052) (4,724) (1,094) (2,522) (564) (57) 1,656 (11,357)
-------- ------- ------- ------- ------- ------ ------- --------
Increase (Decrease) in Net
Assets During the Year 269 3,757 3,144 3,561 11,584 (4) 2,464 24,775
Net Assets Available
for Benefits:
Beginning of Year 22,170 40,307 24,615 41,653 27,562 282 8,446 165,035
------- ------- ------- ------- ------- ------ ------- --------
End of Year $22,439 $44,064 $27,759 $45,214 $39,146 $ 278 $10,910 $189,810
======= ======= ======= ======= ======= ====== ======= ========
See Accompanying Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PHELPS DODGE EMPLOYEE SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
YEAR ENDED DECEMBER 31, 1993
(in thousands)
PHELPS OCCIDENTAL
DODGE PETROLEUM
MONEY INTEREST EQUITY GROWTH COMMON COMMON
MARKET INCOME INCOME STOCK STOCK STOCK LOAN
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 the Year (149) 2,102 7,516 11,520 2,092 (167) 2,159 25,073
Net Assets Available
for Benefits:
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
======= ======= ======= ======= ======= ======= ======= ========
See Accompanying Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PHELPS DODGE EMPLOYEE SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
YEAR ENDED DECEMBER 31, 1992
(in thousands)
PHELPS OCCIDENTAL
DODGE PETROLEUM
MONEY INTEREST EQUITY GROWTH COMMON COMMON
MARKET INCOME INCOME STOCK STOCK STOCK LOAN
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 Available
for Benefits:
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
======= ======= ======= ======= ======= ==== ====== ========
See Accompanying Notes to Financial Statements
</TABLE>
<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), a defined contribution plan, 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 and
Mercantile hourly 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 eligible
base pay of Participants and can be made only to the extent that it does 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. Profit
sharing contributions, which are included in Employer contributions in the
Statement of Net Assets Available for Benefits, With Fund Information, totalled
$8,234,000 for 1994, $7,478,000 for 1993 and $7,072,000 for 1992.
From July 1, 1986 to March 31, 1989, Participants were allowed
to make voluntary contributions from 1% to 10% of their base pay 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
pay. Pretax Contributions are eligible for a matching contribution from the
Corporation (Company Matching Contribution) equal to 50% of the first 5% of the
base pay 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 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, the cash distributions from these common stock funds 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 common stock and mutual fund shares
are based upon the closing market price on the valuation date. The current
values of the Guaranteed Investment Contracts are based upon their respective
face values plus accrued interest 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,
1994 1993 1992
--------- --------- --------
(in thousands)
Cost of shares purchased $8,605 $6,705 $5,714
Number of shares purchased 149 143 129
Proceeds from shares sold $4,530 $3,613 $2,680
Number of shares sold 82 80 63
Value of shares distributed $ 397 $1,124 $1,178
Number of shares distributed 7 24 27
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, on March 31, 1995,
filed 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, 1994:
Money Market Fund 2,530
Interest Income Fund 3,259
Equity Income Fund 2,810
Growth Stock Fund 3,428
Phelps Dodge Common Stock Fund 2,807
Occidental Petroleum Common Stock Fund 44
Loan Fund 1,984
NOTE 7 - REALIZED GAINS (LOSSES) ON INVESTMENTS:
Year Ended December 31, 1994
(in thousands)
Realized
Sales Carrying Gains
Proceeds Value (Losses)
Investments:
Phelps Dodge Common Stock $ 4,927 $ 4,362 $ 565
Mutual Funds and Other Common Stocks 6,438 6,659 (221)
-------- -------- --------
$ 11,365 $ 11,021 $ 344
======== ======== ========
Year Ended December 31, 1993
(in thousands)
Realized
Sales Carrying Gains
Proceeds Value (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)
Realized
Sales Carrying Gains
Proceeds Value (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
======== ======== ========
NOTE 8 - INVESTMENT IN GUARANTEED INVESTMENT CONTRACTS:
On August 12, 1994, Canadian and U.S. Government regulators took
control of Confederation Life Insurance Company (Confederation). The Plan's
Interest Income Fund assets include a Guaranteed Investment Contract (GIC) with
Confederation. The GIC was purchased on March 20, 1991, with an 8.59% contract
rate of interest, with interest paid annually on April 1 and principal payable
at maturity, April 1, 1996. The carrying value of the GIC at the time of seizure
was $5,354,886.
The Plan has frozen the Confederation GIC and is currently not allowing
any distributions, withdrawals, loans or elective investment transfers of this
portion of the Interest Income Fund. The accrual of interest on the
Confederation GIC was discontinued on the seizure date and the nonaccrual has
resulted in approximately $191,000 of interest income not being recognized in
Statement of Changes in Net Assets Available for Benefits, With Fund
Information, for the year ended December 31, 1994.
The Confederation GIC is included in the December 31, 1994 Statement of Net
Assets Available for Benefits, With Fund Information at the carrying value as of
the date of seizure. Based on currently available information, the Committee
does not believe that any significant reduction in carrying value is likely to
occur and, therefore, an impairment writedown is not necessary at this time.
<PAGE>
SCHEDULE I
PHELPS DODGE EMPLOYEE SAVINGS PLAN
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1994
(in thousands)
NUMBER
OF CURRENT
SHARES DESCRIPTION OF INVESTMENT COST VALUE
MONEY MARKET FUND
21,237 Fidelity Money Market Fund $ 21,237 $ 21,237
INTEREST INCOME FUND
Confederation Life Insurance Company
Guaranteed Investment Contract, 8.59%,
5,355 matures April 1, 1996 5,355 5,355
Lincoln National Insurance Company
Guaranteed Investment Contract, 8.02%,
8,551 matures December 31, 1998 8,551 8,551
Peoples Security Life Insurance Company
Guaranteed Investment Contract, 9.10%,
4,632 matures March 31, 1995 4,632 4,632
Principal Mutual Insurance Company
Guaranteed Investment Contract, 5.06%,
3,934 matures December 31, 1999 3,934 3,934
Provident Life Insurance Company
Guaranteed Investment Contract, 7.83%,
4,780 matures March 31, 1997 4,780 4,780
Prudential Insurance Company
Guaranteed Investment Contract, 6.42%,
3,816 matures March 31, 1999 3,816 3,816
State Mutual Insurance Company
Guaranteed Investment Contract, 9.09%,
4,512 matures September 30, 1995 4,512 4,512
Sun Life of Canada Insurance Company
Guaranteed Investment Contract, 5.74%,
6,571 matures June 30, 2000 6,571 6,571
EQUITY INCOME FUND
850 Fidelity Equity Income Fund 24,427 26,095
GROWTH STOCK FUND
638 Fidelity Magellan Fund 41,258 42,660
PHELPS DODGE COMMON STOCK FUND
608 Phelps Dodge Corporation Common Stock 25,022 37,644
OCCIDENTAL PETROLEUM COMMON STOCK FUND
14 Occidental Petroleum Company Common Stock 282 278
LOAN FUND
Loans to Participants 10,944 10,944
-------- --------
TOTAL INVESTMENTS $165,321 $181,009
======== ========
<PAGE>
Consent of Independent Accountants
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 No. 33-26442 of Phelps Dodge Corporation of our report
dated June 16, 1995 appearing on page 5 of this Form 11-K.
PRICE WATERHOUSE
Phoenix, Arizona
June 28, 1995
