FORM 10-K/A
Amendment No. 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 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 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from to
--------------- ----------------
Commission file number 1-720
-------------------------------------------
Phillips Petroleum Company
(Exact name of registrant as specified in its charter)
Delaware 73-0400345
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Phillips Building, Bartlesville, Oklahoma 74004
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 918-661-6600
- - - -----------------------------------------------------------------
Filing Additional Exhibits
<PAGE>
Item 14 - Exhibits
- - - ------------------
The registrant is filing with this Amendment No. 1 Annual Reports
on Form 11-K for the Thrift Plan of Phillips Petroleum Company,
the Long-Term Stock Savings Plan of Phillips Petroleum Company
and the Retirement Savings Plan of Phillips Petroleum Company
Subsidiaries.
1
<PAGE>
PHILLIPS PETROLEUM COMPANY
INDEX TO EXHIBITS
Exhibit
Number Description
- - - ------- -----------
3(i) Restated Certificate of Incorporation, as filed with
the State of Delaware July 17, 1989 (incorporated by
reference to Exhibit 4(a) to Quarterly Report on Form
10-Q for the quarter ended June 30, 1989).
(ii) Bylaws of Phillips Petroleum Company, as amended
effective October 11, 1993 (incorporated by reference
to Exhibit 4 to Quarterly Report on Form 10-Q for the
quarter ended September 30, 1993).
4(a) Indenture dated as of September 15, 1990, between
Phillips Petroleum Company and Continental Bank,
National Association, relating to the 9 1/2% Notes
due 1997 and the 9 3/8% Notes due 2011 (incorporated
by reference to Exhibit 4(c) to Annual Report on Form
10-K for the year ended December 31, 1990).
(b) Indenture dated as of September 15, 1990, as
supplemented by Supplemental Indenture No. 1 dated
May 23, 1991, between Phillips Petroleum Company and
Continental Bank, National Association, relating to
the 9.18% Notes due September 15, 2021, the 9% Notes
due 2001, the 8.86% Notes due May 15, 2022, the 8.49%
Notes due January 1, 2023, the 7.92% Notes due
April 15, 2023, the 7.20% Notes due November 1, 2023
and the 6.65% Notes due March 1, 2003 (incorporated
by reference to Exhibit 4(d) to Annual Report on Form
10-K for the year ended December 31, 1991).
(c) Preferred Share Purchase Rights as described in the
Rights Agreement dated as of July 10, 1989, between
Phillips Petroleum Company and Chemical Bank
(formerly Manufacturers Hanover Trust Company)
(incorporated by reference to Exhibit 1 to Current
Report on Form 8-K dated July 10, 1989).
(d) Amendment dated May 16, 1990, to the Rights Agreement
dated July 10, 1989, between Phillips Petroleum
Company and Chemical Bank (formerly Manufacturers
Hanover Trust Company) (incorporated by reference to
Exhibit 1 to Current Report on Form 8-K dated May 16,
1990).
2
<PAGE>
PHILLIPS PETROLEUM COMPANY
INDEX TO EXHIBITS
(Continued)
Exhibit
Number Description
- - - ------- -----------
The company incurred during 1993 certain long-term
debt not registered pursuant to the Securities
Exchange Act of 1934. No instrument with respect to
such debt is being filed since the total amount of
the securities authorized under any such instrument
did not exceed 10 percent of the total assets of the
company on a consolidated basis. The company hereby
agrees to furnish to the Securities and Exchange
Commission upon its request a copy of such instrument
defining the rights of the holders of such debt.
10(a) Agreement dated December 23, 1984, among Mesa Partners
and related entities and Phillips Petroleum Company
and the schedules, annexes and exhibit thereto
(incorporated by reference to Exhibit 10(a) to Annual
Report on Form 10-K for the year ended December 31,
1989).
(b) Letter Agreement dated December 23, 1984, among Mesa
Partners and related entities and Phillips Petroleum
Company (incorporated by reference to Exhibit 10(b)
to Annual Report on Form 10-K for the year ended
December 31, 1989).
(c) Deferred Compensation Plan for Non-Employee Directors
of Phillips Petroleum Company (incorporated by
reference to Exhibit 10(d) to Annual Report on Form
10-K for the year ended December 31, 1990).
(d) 1986 Stock Plan of Phillips Petroleum Company
(incorporated by reference to Exhibit 10(d) to Annual
Report on Form 10-K for the year ended December 31,
1992).
(e) 1990 Stock Plan of Phillips Petroleum Company
(incorporated by reference to Exhibit 10(f) to Annual
Report on Form 10-K for the year ended December 31,
1989).
(f) Annual Incentive Compensation Plan of Phillips
Petroleum Company (incorporated by reference to
Exhibit 10(f) to Annual Report on Form 10-K for the
year ended December 31, 1992).
(g) Incentive Compensation Plan of Phillips Petroleum
Company (incorporated by reference to Exhibit 10(f)
to Annual Report on Form 10-K for the year ended
December 31, 1988).
3
<PAGE>
PHILLIPS PETROLEUM COMPANY
INDEX TO EXHIBITS
(Continued)
Exhibit
Number Description
- - - ------- -----------
10(h) Principal Corporate Officers Supplemental Retirement
Plan of Phillips Petroleum Company (incorporated by
reference to Exhibit 10(h) to Annual Report on Form
10-K for the year ended December 31, 1989).
(i) Phillips Petroleum Company Supplemental Executive
Retirement Plan.*
(j) Key Employee Deferred Compensation Plan of Phillips
Petroleum Company.*
(k) Non-Employee Director Retirement Plan of Phillips
Petroleum Company (incorporated by reference to
Exhibit 10(k) to Annual Report on Form 10-K for the
year ended December 31, 1992).
(l) Omnibus Securities Plan of Phillips Petroleum Company
(incorporated by reference to Exhibit 10 to Quarterly
Report on Form 10-Q for the quarter ended June 30,
1993).
(m) Natural Gas Liquids Output Purchase and Sale Agreement
effective as of January 1, 1992, by and between
Phillips 66 Company, a division of Phillips Petroleum
Company, and GPM Gas Corporation (incorporated by
reference to Exhibit 10.3 to GPM Gas Corporation's
Registration Statement on Form S-1, File No.
33-45693, filed February 14, 1992).
12 Computation of Ratio of Earnings to Fixed Charges.*
21 List of Subsidiaries of Phillips Petroleum Company.*
23 Consent of Independent Auditors.*
99(a) Form 11-K, Annual Report, of the Thrift Plan of
Phillips Petroleum Company for the fiscal year ended
December 31, 1993.
(b) Form 11-K, Annual Report, of the Long-Term Stock
Savings Plan of Phillips Petroleum Company for the
fiscal year ended December 31, 1993.
4
<PAGE>
PHILLIPS PETROLEUM COMPANY
INDEX TO EXHIBITS
(Continued)
Exhibit
Number Description
- - - ------- -----------
99(c) Form 11-K, Annual Report, of the Retirement Savings
Plan of Phillips Petroleum Company Subsidiaries for
the fiscal year ended December 31, 1993.
*Filed with the original Annual Report on Form 10-K for year
ended December 31, 1993.
Copies of the exhibits listed in the Index to Exhibits are
available upon request for a fee of $3.00 per document. Such
request should be addressed to:
Secretary
Phillips Petroleum Company
1234 Adams Building
Bartlesville, OK 74004
5
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this amendment to be signed
on its behalf by the undersigned thereunto duly authorized.
PHILLIPS PETROLEUM COMPANY
/s/ L. F. Francis
----------------------------------
L. F. Francis
Controller and General Tax Officer
June 22, 1994
6
<PAGE>
Exhibit 99(a)
FORM 11-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(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 33-50134
---------------------------------
THRIFT PLAN OF PHILLIPS PETROLEUM COMPANY
(Full title of the Plan)
PHILLIPS PETROLEUM COMPANY
(Name of issuer of securities)
Bartlesville, Oklahoma 74004
(Address of principal executive office) (Zip code)
<PAGE>
FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements
--------------------
Financial statements of the Thrift Plan of Phillips Petroleum
Company, filed as a part of this annual report, are listed in the
accompanying index.
(b) Exhibits
--------
Exhibit 1 Consent of Ernst & Young.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Thrift Plan Committee has duly caused this annual
report to be signed on its behalf by the undersigned hereunto
duly authorized.
THRIFT PLAN OF
PHILLIPS PETROLEUM COMPANY
/s/ L. F. Francis
---------------------------------
L. F. Francis
Member
Thrift Plan Committee
June 22, 1994
1
<PAGE>
- - - -----------------------------------------------------------------
Index To Financial Statements Thrift Plan Of Phillips
And Schedules Petroleum Company
Page
Report of Independent Auditors .............................. 4
Financial Statements
Statements of Net Assets Available for Benefits
at December 31, 1993 and 1992
Total Plan ............................................. 5
Fund A ................................................. 7
Fund B ................................................. 9
Fund C ................................................. 11
Fund D--Deposit Administration Account ................. 13
Fund D--Deferred Settlement Account .................... 15
Temporary Investment Fund .............................. 23
Statements of Net Assets Available for Benefits
at December 31, 1993
Fund E ................................................. 17
Fund F ................................................. 19
Loan Fund .............................................. 21
Statements of Changes in Net Assets Available for Benefits
for the Years Ended December 31, 1993, 1992 and 1991
Total Plan ............................................. 6
Fund A ................................................. 8
Fund B ................................................. 10
Fund C ................................................. 12
Fund D--Deposit Administration Account ................. 14
Fund D--Deferred Settlement Account .................... 16
Fund E ................................................. 18
Temporary Investment Fund............................... 24
Statements of Changes in Net Assets Available for Benefits
for the Year Ended December 31, 1993
Fund F ................................................. 20
Loan Fund .............................................. 22
Notes to Financial Statements ............................. 25
2
<PAGE>
- - - -----------------------------------------------------------------
Index To Financial Statements Thrift Plan Of Phillips
And Schedules Petroleum Company
Page
Supplemental Schedules
Schedule of Assets Held for Investment Purposes
at December 31, 1993 .................................... 32
Schedule of Reportable Transactions for the
Year Ended December 31, 1993 ............................ 34
3
<PAGE>
- - - -----------------------------------------------------------------
Report Of Independent Auditors
The Thrift Plan Committee
Thrift Plan of Phillips Petroleum Company
We have audited the financial statements of the Thrift Plan of
Phillips Petroleum Company (Plan) listed in the accompanying
index to financial statements and schedules. These financial
statements are the responsibility of the Thrift Plan Committee
(Committee). 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 the Committee, 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 listed in the
accompanying index to financial statements and schedules present
fairly, in all material respects, the net assets available for
benefits of the Plan at December 31, 1993 and 1992, and the
changes in net assets available for plan benefits for each of the
three years in the period ended December 31, 1993, in conformity
with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the
basic financial statements taken as a whole. The accompanying
supplemental schedules of assets held for investment purposes as
of December 31, 1993, and reportable transactions for the year
ended December 31, 1993, are presented for the purposes of
complying with the Department of Labor's Rules and Regulations
for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974, and are not a required part of the basic
financial statements. The supplemental schedules have been
subjected to the auditing procedures applied in our audit of the
1993 financial statements and, in our opinion, are fairly stated
in all material respects in relation to the 1993 basic financial
statements taken as a whole.
/s/ ERNST & YOUNG
-------------
ERNST & YOUNG
Tulsa, Oklahoma
June 22, 1994
4
<PAGE>
- - - -----------------------------------------------------------------
Statement Of Net Assets Thrift Plan Of Phillips
Available For Benefits Petroleum Company
Thousands of Dollars
------------------------
At December 31 1993 1992
------------------------
Assets
Investments
Common stock $ 634,567 640,231
Insurance contracts 403,121 407,596
U.S. government securities - 65,645
BT Pyramid Government Securities
Cash Fund 19,106 27,880
BT Pyramid Equity Index Fund 37,590 -
Wells Fargo Government/Corporate
Bond Index Fund E 90,558 -
BT Pyramid Discretionary Cash Fund 19,665 -
Loans to Plan participants 14,157 -
- - - -----------------------------------------------------------------
1,218,764 1,141,352
Cash 1 -
Contributions Receivable 629 567
Employee Deposits Receivable 238 107
Loan Repayments Receivable 33 -
Interest Receivable 105 1,398
- - - -----------------------------------------------------------------
Total Assets 1,219,770 1,143,424
- - - -----------------------------------------------------------------
Liabilities
Benefits Payable - 9
Securities Purchased 1,786 4,070
Other Liabilities 14 -
- - - -----------------------------------------------------------------
Total Liabilities 1,800 4,079
- - - -----------------------------------------------------------------
Net Assets Available for Benefits $1,217,970 1,139,345
=================================================================
See Notes to Financial Statements.
5
<PAGE>
- - - -----------------------------------------------------------------
Statement Of Changes In Net Thrift Plan Of Phillips
Assets Available For Benefits Petroleum Company
Thousands of Dollars
------------------------------------
Years Ended December 31 1993 1992 1991
------------------------------------
Additions
Contributions and Deposits
Company contributions
Matching $ 5,986 5,952 6,105
Before-tax deposits 16,518 15,388 15,656
Employee deposits 17,913 17,533 18,476
- - - -----------------------------------------------------------------
40,417 38,873 40,237
- - - -----------------------------------------------------------------
Investment Income
Dividends 26,091 30,231 30,513
Interest 35,642 40,991 47,178
Net appreciation
(depreciation) 109,944 34,307 (57,023)
- - - -----------------------------------------------------------------
171,677 105,529 20,668
- - - -----------------------------------------------------------------
Total Additions 212,094 144,402 60,905
- - - -----------------------------------------------------------------
Deductions
Distributions to
Participants or Their
Beneficiaries
Cash 96,790 127,974 130,030
Common stock 36,256 59,735 13,041
Forfeitures 9 6 14
Administrative Expense 425 - -
Interest Expense 23 - -
Transfer to (from) Other
Plans (34) - 403
- - - -----------------------------------------------------------------
Total Deductions 133,469 187,715 143,488
- - - -----------------------------------------------------------------
Net Increase (Decrease) 78,625 (43,313) (82,583)
Net Assets Available for
Benefits
Beginning of Year 1,139,345 1,182,658 1,265,241
- - - -----------------------------------------------------------------
End of Year $1,217,970 1,139,345 1,182,658
=================================================================
See Notes to Financial Statements.
6
<PAGE>
- - - -----------------------------------------------------------------
Statement Of Net Assets Thrift Plan Of Phillips
Available For Benefits Petroleum Company
FUND A
Thousands of Dollars
------------------------
At December 31 1993 1992
------------------------
Assets
Investments
U.S. government securities $ - 65,645
Wells Fargo Government/Corporate
Bond Index Fund E 90,558 -
BT Pyramid Government Securities
Cash Fund 22 9,272
- - - -----------------------------------------------------------------
90,580 74,917
Due from Temporary Investment Fund 140 88
Cash 1 -
Interest Receivable - 1,331
- - - -----------------------------------------------------------------
Total Assets 90,721 76,336
- - - -----------------------------------------------------------------
Net Assets Available for Benefits $90,721 76,336
=================================================================
Number of Units 8,552,717 7,876,597
Unit Value $10.6073 9.6916
- - - -----------------------------------------------------------------
See Notes to Financial Statements.
7
<PAGE>
- - - -----------------------------------------------------------------
Statement Of Changes In Net Thrift Plan Of Phillips
Assets Available For Benefits Petroleum Company
FUND A
Thousands of Dollars
---------------------------------
Years Ended December 31 1993 1992 1991
---------------------------------
Additions
Investment Income
Interest $ 300 5,239 5,334
Net appreciation
(depreciation) 7,894 (986) 2,395
- - - -----------------------------------------------------------------
8,194 4,253 7,729
Allocation of Deposits and
Earnings from Temporary
Investment Fund 1,347 887 723
- - - -----------------------------------------------------------------
Total Additions 9,541 5,140 8,452
- - - -----------------------------------------------------------------
Deductions
Cash Distributions to
Participants or Their
Beneficiaries 12,745 16,214 5,031
Administrative Expense 92 - -
Transfer to Other Plans - - 32
- - - -----------------------------------------------------------------
Total Deductions 12,837 16,214 5,063
- - - -----------------------------------------------------------------
Interfund Transfers 17,681 10,903 8,825
- - - -----------------------------------------------------------------
Net Increase (Decrease) 14,385 (171) 12,214
Net Assets Available for
Benefits
Beginning of Year 76,336 76,507 64,293
- - - -----------------------------------------------------------------
End of Year $90,721 76,336 76,507
=================================================================
See Notes to Financial Statements.
8
<PAGE>
- - - -----------------------------------------------------------------
Statement Of Net Assets Thrift Plan Of Phillips
Available For Benefits Petroleum Company
FUND B
Thousands of Dollars
------------------------
At December 31 1993 1992
------------------------
Assets
Investments
Common stock $434,165 439,957
BT Pyramid Government Securities
Cash Fund 15,432 15,200
- - - -----------------------------------------------------------------
449,597 455,157
Due from Temporary Investment Fund 2,655 2,347
Interest Receivable 28 42
- - - -----------------------------------------------------------------
Total Assets 452,280 457,546
- - - -----------------------------------------------------------------
Liabilities
Benefits Payable - 7
Securities Purchased 1,179 2,808
Other Liabilities 9 -
- - - -----------------------------------------------------------------
Total Liabilities 1,188 2,815
- - - -----------------------------------------------------------------
Net Assets Available for Benefits $451,092 454,731
=================================================================
Number of Units 6,682,406 8,094,364
Unit Value $64.0916 55.8629
- - - -----------------------------------------------------------------
See Notes to Financial Statements.
9
<PAGE>
- - - -----------------------------------------------------------------
Statement Of Changes In Net Thrift Plan Of Phillips
Assets Available For Benefits Petroleum Company
FUND B
Thousands of Dollars
----------------------------------
Years Ended December 31 1993 1992 1991
----------------------------------
Additions
Investment Income (Loss)
Dividends $ 17,220 20,859 21,064
Interest 262 242 245
Net appreciation
(depreciation) 66,019 24,832 (40,696)
- - - -----------------------------------------------------------------
83,501 45,933 (19,387)
Allocation of Deposits and
Earnings from Temporary
Investment Fund 26,322 26,105 27,177
- - - -----------------------------------------------------------------
Total Additions 109,823 72,038 7,790
- - - -----------------------------------------------------------------
Deductions
Distributions to
Participants or Their
Beneficiaries
Cash 28,438 35,046 19,497
Common stock 26,297 45,971 10,474
Administrative Expense 151 - -
Interest Expense 15 - -
Transfer to Other Plans - - 186
- - - -----------------------------------------------------------------
Total Deductions 54,901 81,017 30,157
- - - -----------------------------------------------------------------
Interfund Transfers (58,561) (9,810) 4,135
- - - -----------------------------------------------------------------
Net Decrease (3,639) (18,789) (18,232)
Net Assets Available for
Benefits
Beginning of Year 454,731 473,520 491,752
- - - -----------------------------------------------------------------
End of Year $451,092 454,731 473,520
=================================================================
See Notes to Financial Statements.
10
<PAGE>
- - - -----------------------------------------------------------------
Statement Of Net Assets Thrift Plan Of Phillips
Available For Benefits Petroleum Company
FUND C
Thousands of Dollars
------------------------
At December 31 1993 1992
------------------------
Assets
Investments
Common stock $200,402 200,274
BT Pyramid Government Securities
Cash Fund 557 439
- - - -----------------------------------------------------------------
200,959 200,713
Contributions Receivable 507 520
Interest Receivable 14 19
- - - -----------------------------------------------------------------
Total Assets 201,480 201,252
- - - -----------------------------------------------------------------
Liabilities
Securities Purchased 607 1,262
Other Liabilities 5 2
- - - -----------------------------------------------------------------
Total Liabilities 612 1,264
- - - -----------------------------------------------------------------
Net Assets Available for Benefits $200,868 199,988
=================================================================
Number of Units 3,489,916 3,625,762
Unit Value $64.0916 55.8629
- - - -----------------------------------------------------------------
See Notes to Financial Statements.
11
<PAGE>
- - - -----------------------------------------------------------------
Statement Of Changes In Net Thrift Plan Of Phillips
Assets Available For Benefits Petroleum Company
FUND C
Thousands of Dollars
----------------------------------
Years Ended December 31 1993 1992 1991
----------------------------------
Additions
Company Contributions--
Matching $ 5,986 5,952 6,105
- - - -----------------------------------------------------------------
Investment Income (Loss)
Dividends 8,871 9,372 9,449
Interest 134 105 114
Net appreciation
(depreciation) 33,531 10,751 (18,018)
- - - -----------------------------------------------------------------
42,536 20,228 (8,455)
- - - -----------------------------------------------------------------
Total Additions (Deductions) 48,522 26,180 (2,350)
- - - -----------------------------------------------------------------
Deductions
Distributions to
Participants or Their
Beneficiaries
Cash 12,036 17,408 8,084
Common stock 9,959 13,764 2,567
Forfeitures 9 6 14
Administrative Expense 78 - -
Interest Expense 8 - -
Transfer to Other Plans - - 141
- - - -----------------------------------------------------------------
Total Deductions 22,090 31,178 10,806
- - - -----------------------------------------------------------------
Interfund Transfers (25,552) (3,072) (409)
- - - -----------------------------------------------------------------
Net Increase (Decrease) 880 (8,070) (13,565)
Net Assets Available for
Benefits
Beginning of Year 199,988 208,058 221,623
- - - -----------------------------------------------------------------
End of Year $200,868 199,988 208,058
=================================================================
See Notes to Financial Statements.
12
<PAGE>
- - - -----------------------------------------------------------------
Statement Of Net Assets Thrift Plan Of Phillips
Available For Benefits Petroleum Company
FUND D--DEPOSIT ADMINISTRATION ACCOUNT
Thousands of Dollars
----------------------
At December 31 1993 1992
----------------------
Assets
Investments
Insurance contracts
Travelers Insurance Company,
Group Annuity Contract GR-15505 $178,356 186,546
Group Annuity Contract GR-14128 - 8,026
The Prudential Insurance Company of
America, Group Annuity Contract
GA-5991 71,323 71,043
Continental Assurance Company,
Group Annuity, Contract GP-12692 63,945 62,825
Group Annuity, Contract GP-12787 25,270 15,083
Provident National Assurance,
Group Annuity, Contract GC-05048 62,994 62,321
BT Pyramid Government Securities
Cash Fund - 195
- - - -----------------------------------------------------------------
401,888 406,039
Due from Temporary Investment Fund - 499
- - - -----------------------------------------------------------------
Total Assets 401,888 406,538
- - - -----------------------------------------------------------------
Net Assets Available for Benefits $401,888 406,538
=================================================================
Number of Units (A)
Unit Values (A)
- - - -----------------------------------------------------------------
(A) See Note 4.
See Notes to Financial Statements.
13
<PAGE>
- - - -----------------------------------------------------------------
Statement Of Changes In Net Thrift Plan Of Phillips
Assets Available For Benefits Petroleum Company
FUND D--DEPOSIT ADMINISTRATION ACCOUNT
Thousands of Dollars
----------------------------------
Years Ended December 31 1993 1992 1991
----------------------------------
Additions
Investment Income
Interest $ 34,444 34,726 38,818
Allocation of Deposits and
Earnings from Temporary
Investment Fund 2,124 6,017 6,369
- - - -----------------------------------------------------------------
Total Additions 36,568 40,743 45,187
- - - -----------------------------------------------------------------
Deductions
Cash Distributions to
Participants or Their
Beneficiaries 38,509 58,360 95,431
Administrative Expense 55 - -
Transfer to Other Plans - - 39
- - - -----------------------------------------------------------------
Total Deductions 38,564 58,360 95,470
- - - -----------------------------------------------------------------
Interfund Transfers (2,654) 19,265 (9,862)
- - - -----------------------------------------------------------------
Net Increase (Decrease) (4,650) 1,648 (60,145)
Net Assets Available for
Benefits
Beginning of Year 406,538 404,890 465,035
- - - -----------------------------------------------------------------
End of Year $401,888 406,538 404,890
=================================================================
See Notes to Financial Statements.
14
<PAGE>
- - - -----------------------------------------------------------------
Statement Of Net Assets Thrift Plan Of Phillips
Available For Benefits Petroleum Company
FUND D--DEFERRED SETTLEMENT ACCOUNT
Thousands of Dollars
----------------------
At December 31 1993 1992
----------------------
Assets
Investments
Insurance contract $1,233 1,752
- - - -----------------------------------------------------------------
Total Assets 1,233 1,752
- - - -----------------------------------------------------------------
Net Assets Available for Benefits $1,233 1,752
=================================================================
See Notes to Financial Statements.
15
<PAGE>
- - - -----------------------------------------------------------------
Statement Of Changes In Net Thrift Plan Of Phillips
Assets Available For Benefits Petroleum Company
FUND D--DEFERRED SETTLEMENT ACCOUNT
Thousands of Dollars
--------------------------------
Years Ended December 31 1993 1992 1991
--------------------------------
Additions
Investment Income
Interest $ 89 137 179
- - - -----------------------------------------------------------------
Total Additions 89 137 179
- - - -----------------------------------------------------------------
Deductions
Cash Distributions to
Participants or Their
Beneficiaries 608 837 1,213
- - - -----------------------------------------------------------------
Total Deductions 608 837 1,213
- - - -----------------------------------------------------------------
Net Decrease (519) (700) (1,034)
Net Assets Available for
Benefits
Beginning of Year 1,752 2,452 3,486
- - - -----------------------------------------------------------------
End of Year $1,233 1,752 2,452
=================================================================
See Notes to Financial Statements.
16
<PAGE>
- - - -----------------------------------------------------------------
Statement Of Net Assets Thrift Plan Of Phillips
Available For Benefits Petroleum Company
FUND E
Thousands
of Dollars
----------
At December 31 1993
----------
Assets
Investments
BT Pyramid Equity Index Fund $37,590
Due From Temporary Investment Fund 350
- - - ----------------------------------------------------------------
Total Assets 37,940
- - - ----------------------------------------------------------------
Net Assets Available for Benefits $37,940
================================================================
Number of Units 34,189,510
Unit Value $1.1097
- - - ----------------------------------------------------------------
See Notes to Financial Statements.
17
<PAGE>
- - - -----------------------------------------------------------------
Statement Of Changes In Net Thrift Plan Of Phillips
Assets Available For Benefits Petroleum Company
FUND E
Thousands of Dollars
---------------------------------
Years Ended December 31 1993 1992 1991
---------------------------------
Additions
Investment Income
Interest
Debt securities of
Phillips Petroleum
Company $ - 452 2,347
Other - 2 4
Net appreciation
(depreciation) 2,500 (290) (704)
- - - -----------------------------------------------------------------
2,500 164 1,647
Allocation of Deposits and
Earnings from Temporary
Investment Fund 3,026 - -
- - - -----------------------------------------------------------------
Total Additions 5,526 164 1,647
- - - -----------------------------------------------------------------
Deductions
Cash Distributions to
Participants or Their
Beneficiaries 1,950 109 774
Administrative Expense 42 - -
Transfers to Other Plans - - 5
- - - -----------------------------------------------------------------
Total Deductions 1,992 109 779
- - - -----------------------------------------------------------------
Interfund Transfers 34,406 (17,286) (2,689)
- - - -----------------------------------------------------------------
Net Increase (Decrease) 37,940 (17,231) (1,821)
Net Assets Available for
Benefits
Beginning of Year - 17,231 19,052
- - - -----------------------------------------------------------------
End of Year $37,940 - 17,231
=================================================================
See Notes to Financial Statements.
18
<PAGE>
- - - -----------------------------------------------------------------
Statement Of Net Assets Thrift Plan Of Phillips
Available For Benefits Petroleum Company
FUND F
Thousands
of Dollars
----------
At December 31 1993
----------
Assets
Investments
BT Pyramid Discretionary Cash Fund $19,665
Due from Temporary Investment Fund 350
Interest Receivable 56
- - - -----------------------------------------------------------------
Total Assets 20,071
- - - -----------------------------------------------------------------
Net Assets Available for Benefits $20,071
=================================================================
Number of Units 19,802,851
Unit Value $1.0135
- - - -----------------------------------------------------------------
See Notes to Financial Statements.
19
<PAGE>
- - - -----------------------------------------------------------------
Statement Of Changes In Net Thrift Plan Of Phillips
Assets Available For Benefits Petroleum Company
FUND F
Thousands
of Dollars
----------
Year Ended December 31 1993
----------
Additions
Investment Income
Interest $ 228
Allocation of Deposits and
Earnings from Temporary
Investment Fund 1,682
- - - -----------------------------------------------------------------
Total Additions 1,910
- - - -----------------------------------------------------------------
Deductions
Cash Distributions to Participants
or Their Beneficiaries 2,491
Transfer from Other Plans (34)
Administrative Expense 7
- - - -----------------------------------------------------------------
Total Deductions 2,464
- - - -----------------------------------------------------------------
Interfund Transfers 20,625
- - - -----------------------------------------------------------------
Net Increase 20,071
Net Assets Available for
Benefits
Beginning of Year -
- - - -----------------------------------------------------------------
End of Year $20,071
=================================================================
See Notes to Financial Statements.
20
<PAGE>
- - - -----------------------------------------------------------------
Statement Of Net Assets Thrift Plan Of Phillips
Available For Benefits Petroleum Company
LOAN FUND
Thousands
of Dollars
----------
At December 31 1993
----------
Assets
Investments
Loans to participants $14,157
- - - -----------------------------------------------------------------
Total Assets 14,157
- - - -----------------------------------------------------------------
Net Assets Available for Benefits $14,157
=================================================================
See Notes to Financial Statements.
21
<PAGE>
- - - -----------------------------------------------------------------
Statement Of Changes In Net Thrift Plan Of Phillips
Assets Available For Benefits Petroleum Company
LOAN FUND
Thousands
of Dollars
----------
Year Ended December 31 1993
----------
Deductions
Cash Distributions to
Participants or Their
Beneficiaries $ 13
Loan repayments from Plan
participants 523
- - - -----------------------------------------------------------------
Total Deductions 536
- - - -----------------------------------------------------------------
Interfund Transfers 14,693
- - - -----------------------------------------------------------------
Net Increase 14,157
Net Assets Available for
Benefits
Beginning of Year -
- - - -----------------------------------------------------------------
End of Year $14,157
=================================================================
See Notes to Financial Statements.
22
<PAGE>
- - - -----------------------------------------------------------------
Statement Of Net Assets Thrift Plan Of Phillips
Available For Benefits Petroleum Company
TEMPORARY INVESTMENT FUND
Thousands of Dollars
----------------------
At December 31 1993 1992
----------------------
Assets
Investments
BT Pyramid Government Securities
Cash Fund $3,095 2,774
Contributions Receivable 122 47
Employee Deposits Receivable 238 107
Loan Repayments Receivable 33 -
Interest Receivable 7 6
- - - -----------------------------------------------------------------
Total Assets 3,495 2,934
- - - -----------------------------------------------------------------
Liabilities
Due to Fund A 140 88
Due to Fund B 2,655 2,347
Due to Fund D--Deposit Administration
Account - 499
Due to Fund E 350 -
Due to Fund F 350 -
- - - -----------------------------------------------------------------
Total Liabilities 3,495 2,934
- - - -----------------------------------------------------------------
Net Assets Available for Benefits $ - -
=================================================================
See Notes to Financial Statements.
23
<PAGE>
- - - -----------------------------------------------------------------
Statement Of Changes In Net Thrift Plan Of Phillips
Assets Available For Benefits Petroleum Company
TEMPORARY INVESTMENT FUND
Thousands of Dollars
----------------------------------
Years Ended December 31 1993 1992 1991
----------------------------------
Additions
Contributions and Deposits
Company contributions
Before-tax deposits $16,518 15,388 15,656
Employee deposits 17,913 17,533 18,476
Loan repayments from
Plan participants 523 - -
- - - -----------------------------------------------------------------
34,954 32,921 34,132
Investment Income
Interest 185 88 137
- - - -----------------------------------------------------------------
Total Additions 35,139 33,009 34,269
- - - -----------------------------------------------------------------
Deductions
Allocation of Deposits and
Earnings 34,501 33,009 34,269
- - - -----------------------------------------------------------------
Total Deductions 34,501 33,009 34,269
- - - -----------------------------------------------------------------
Interfund Transfers (638) - -
Net Increase - - -
Net Assets Available for
Benefits
Beginning of Year - - -
- - - -----------------------------------------------------------------
End of Year $ - - -
=================================================================
See Notes to Financial Statements.
24
<PAGE>
- - - -----------------------------------------------------------------
Notes To Financial Statements Thrift Plan Of Phillips
Petroleum Company
Note 1--Plan Description
The following description of the Thrift Plan of Phillips Petroleum
Company (Plan) is subject to and qualified by the more complete
information appearing in the Plan document. The Plan was known as
the Thrift Plan of Phillips Petroleum Company and Subsidiary
Companies until June 10, 1992. Beginning January 1, 1993, changes
were made to the Plan to add new investment funds and provide
participants with more flexibility in directing their savings
investments.
The Plan is a defined contribution plan available to certain
employees of Phillips Petroleum Company and participating
subsidiaries (Company). Generally, any regular employee on the
direct dollar payroll of the Company is eligible to participate.
Non-managerial retail outlet marketing employees are not eligible.
Effective September 16, 1991, certain former employees elected to
transfer assets and liabilities associated with their accounts to
the Applied Automation, Inc. Incentive Savings Plan. Effective
August 23, 1993, assets and liabilities associated with accounts
from the Salary Reduction Thrift Plan for Employees of Incinatrol,
Inc. were transferred to the Plan.
The Company has a trust agreement with Bankers Trust Company, New
York, New York (Trustee). Plan investments are held by the
Trustee. Through December 31, 1992, WestStar Bank, N.A.,
Bartlesville, Oklahoma, was the investment manager for Fund A of
the Plan. Since then, Fund A has been managed by the Trustee,
with Wells Fargo Institutional Trust Company managing Fund A
assets invested in the Wells Fargo Government/Corporate Bond Index
Fund E.
Participants may have up to 15 percent of their pay deposited in
the Plan each month. The first 5 percent is designated as regular
deposits with any excess being designated as supplemental
deposits. Deposits may be further designated by a participant as
before-tax or after-tax deposits. Before-tax deposits are made by
the Company on behalf of a participant who has elected the
before-tax feature of the Plan. Total deposit amounts and
allocation of deposits between after-tax and before-tax accounts
are subject to limitations imposed by the Internal Revenue Code.
Participants may change their investment direction and deposit
rate semiannually during designated enrollment periods. Employee
deposits may be suspended in certain circumstances.
The Company contributes an amount equal to 25 percent of an
employee's regular deposits made to Fund B and 15 percent of
regular deposits made to any other investment fund.
25
<PAGE>
Employee and before-tax deposits, and loan repayments are first
placed in the Temporary Investment Fund and invested in certain
specified short-term securities for up to 45 days after receipt by
the Trustee. Loan repayments and any earnings thereon are
transferred to the Loan Fund and then allocated to Funds A, B, E
or F based on a participant's regular deposits. Employee deposits
and the earnings thereon are paid into Funds A, B, E or F as
directed by the participant, and invested as follows: Fund A
(prior to January 1, 1993, in United States government securities;
after December 31, 1992, in the commingled Wells Fargo
Government/Corporate Bond Index Fund E managed by Wells Fargo
Institutional Trust Company), Fund B (common stock of Phillips
Petroleum Company), Fund E (after December 31, 1992, in the
commingled BT Pyramid Equity Index Fund managed by Bankers Trust
Company) and Fund F (effective July 1, 1993, in the BT Pyramid
Discretionary Cash Fund, a commingled money market fund managed by
Bankers Trust Company). After June 30, 1993, Fund D (investment
contracts which guarantee repayment of principal invested and a
fixed rate of interest) no longer accepts deposits. Fund E held
Phillips debt securities until March 15, 1992, when Phillips
redeemed all of its 13 7/8 percent senior notes due in 1997 and 14
3/4 percent subordinated debentures due in 2000, the proceeds
being reinvested by the Plan in Fund B at that time. Company
matching contributions are invested in Fund C (common stock of
Phillips Petroleum Company). The Loan Fund is used to record
transactions resulting from loans made to active employees against
their accounts. Except for the Temporary Investment Fund and the
Loan Fund, the interest of participants in each fund is
represented by units allocated to them.
The Plan provides for transfers among funds; however, plan
participants may not direct transfers to Fund C, the Loan Fund, or
the Temporary Investment Fund. Transfers to Fund D were permitted
only in certain circumstances until June 15, 1993, but due to
restrictions required by the insurance companies, transfers were
not allowed out of Fund D after January 15, 1993. Beginning in
1993, monthly transfers were allowed between investment funds,
except as mentioned above.
A participant is vested at all times with respect to his deposits.
Generally, a participant is vested with respect to his interest in
Company contributions (a) if he has made, or has had made on his
behalf, regular deposits for 12 months; (b) upon retirement
pursuant to a Company retirement plan; (c) upon death; (d) upon
becoming totally and permanently disabled; (e) upon reaching age
65; (f) upon being laid off; or (g) upon completion of five years
of vesting service.
Generally a participant may, as of any valuation date, withdraw
any portion of his vested interest in his after-tax account. A
participant may not withdraw his interest in his before-tax
account unless he is at least age 59 1/2, experiences a specified
financial hardship, becomes totally and permanently disabled, or
separates from service.
26
<PAGE>
Forfeitures arising from nonvested withdrawals are used to reduce
future Company contributions. Forfeitures may be restored under
certain circumstances if the participant later repays the amount
withdrawn.
Distributions occur upon separation from service, but may be
deferred. For a participant who retires or becomes totally
disabled, distribution may be deferred to a date not later than
February of the year after the year age 70 1/2 is attained. If
the participant dies, distribution to a surviving spouse
beneficiary may be deferred to the second valuation date prior to
the date on which the participant would have attained age 70 1/2.
This deferral is revocable by the participant or the surviving
spouse. Distributions to non-spouse beneficiaries may be deferred
approximately five years. Distributions are based on the
valuation of the participant's interest in the trust fund.
Available forms of distribution are:
(a) from Funds A, D, E or F in cash (distributions from
Fund F were not available until 1993);
(b) from Funds B and C in whole shares of common stock and/or
cash;
(c) with respect to a participant who retires under a Company
retirement plan or a beneficiary spouse of a participant
in the event of an active employee participant's death,
in the form of an irrevocable nontransferable monthly
annuity purchased with a specified dollar amount of the
participant's interest in the Plan; and
(d) with respect to a participant who retires before July 1,
1992, under a Company retirement plan, monthly, quarterly
or annual payments irrevocably elected from his interest
in Fund D commencing at retirement with, at the
participant's direction, a designated life interest
beneficiary to receive any unpaid scheduled payments
following the participant's death.
Since January 1, 1993, a participant may elect a direct rollover
of the taxable portion of most distributions to an Individual
Retirement Account or another tax-qualified plan. The taxable
portion of any such distribution that is not rolled over directly
will be subject to 20 percent federal withholding.
The Plan is administered by a Thrift Plan Committee, the members
of which are appointed by the Board of Directors of Phillips
Petroleum Company. The Plan Financial Administrator and Plan
Benefits Administrator are the persons who occupy, respectively,
the Phillips Petroleum Company positions of Risk Management and
Investment Manager, and Compensation and Benefits Manager.
Members of the Committee and the Plan Administrators serve without
compensation, but are reimbursed by the Company for necessary
expenditures incurred in the discharge of their duties.
27
<PAGE>
The Plan pays all reasonable expenses necessary for the operation
of the Plan unless such expenses are paid by the Company. Prior
to 1993, the Company paid all expenses other than brokerage fees,
commissions, stock transfer taxes and other charges and expenses
incurred in connection with the purchase or sale of securities
which were paid by the Plan. Such expenses include a fee of 0.15
percent of the funds invested in the insured contracts in Fund D,
and the guaranteed rates for these contracts will be reduced by
such amount if the Company declines to pay these fees. Effective
January 1, 1993, the Company began paying only the Trustee's
recordkeeping and accounting fees and the class year contract
administration fees.
The Company intends to continue the Plan indefinitely, but
reserves the right to amend or terminate it at any time. In the
event of termination of the Plan each participant will become
fully vested.
Note 2--Investments
All securities are valued at their quoted market price or, with
respect to units of participation in commingled funds, redemption
value. Insurance contracts are valued pursuant to their terms;
the value represents fund deposits plus interest credited less
distributions. Participant loans are valued at cost, which
approximates fair value.
Note 3--Contributions Receivable
Contributions receivable at December 31 included the following:
Thousands of Dollars
--------------------
1993 1992
--------------------
Receivable from the Company for
matching contributions $507 520
Before-tax deposits 122 47
- - - -----------------------------------------------------------------
$629 567
=================================================================
28
<PAGE>
Note 4--Class Year Accounts
A breakdown of Fund D--Deposit Administration Account by Class
Year at December 31 follows:
Thousands
of Dollars
-------------
Net Assets
Available Number Unit
for Benefits of Units Values
------------------------------------
1993
- - - ----
1992 $ 25,270 13,387,160 1.8876
1991 126,939 54,885,147 2.3128
1990 178,356 60,899,767 2.9287
1989 19,925 6,837,204 2.9141
1988 51,398 8,904,618 5.7721
--------
$401,888
========
1992
- - - ----
1992 $ 15,777 8,958,366 1.7612
1991 125,146 58,404,193 2.1428
1990 186,546 69,617,439 2.6796
1989 19,646 7,338,441 2.6772
1988 51,396 9,751,654 5.2705
1987 8,027 5,039,151 1.5929
--------
$406,538
========
Note 5--Loan Fund
Since July 1, 1993, the Plan has allowed loans to active
employees or parties in interest from their accounts. The
minimum loan is $1,000, and generally the maximum is the lesser
of $50,000 or half a participant's vested account. The loans may
extend for up to 60 months (180 months for a home loan) with a
rate of interest equal to the national prime lending rate, as
determined on the regular valuation date prior to the date of a
loan application. No more than one home loan and two regular
loans may be outstanding at any given time.
29
<PAGE>
Loan payments and interest are repaid to the borrowing
participant's accounts through the Loan Fund, which records the
outstanding loans and related transactions. Repayments are
allocated to Funds A, B, E or F based on a participant's regular
deposits. For the period ended December 31, 1993, the total of
loans made by fund of origin, principal repaid, and aggregate
outstanding loan balance were:
Thousands of Dollars
--------------------------------------------
Fund A B C D E F Total
--------------------------------------------
Period ended
December 31, 1993
- - - -----------------
Participant Loans $1,500 10,428 62 1,724 834 132 14,680
Principal Repaid 12 418 35 - 37 21 523
- - - -----------------------------------------------------------------
Loans Outstanding
at December 31,
1993 $14,157
=================================================================
Note 6--Allocation of Deposits and Earnings from Temporary
Investment Fund
Allocation of deposits and earnings from the Temporary Investment
Fund represents the allocation of employee deposits and
before-tax contributions made to the Temporary Investment Fund
and related earnings thereon. A breakdown of the allocation for
each of the periods follows:
Thousands of Dollars
--------------------------------------
Fund A Fund B Fund D Fund E Fund F
--------------------------------------
December 31, 1993
- - - -----------------
Employee deposits $ 769 12,957 1,388 1,645 1,149
Before-tax contributions 575 13,308 730 1,375 530
Interest 3 57 6 6 3
- - - -----------------------------------------------------------------
$1,347 26,322 2,124 3,026 1,682
=================================================================
December 31, 1992
- - - -----------------
Employee deposits $480 13,183 3,871 - -
Before-tax contributions 405 12,853 2,130 - -
Interest 2 69 16 - -
- - - -----------------------------------------------------------------
$887 26,105 6,017 - -
=================================================================
December 31, 1991
- - - -----------------
Employee deposits $400 13,913 4,163 - -
Before-tax contributions 320 13,156 2,180 - -
Interest 3 108 26 - -
- - - -----------------------------------------------------------------
$723 27,177 6,369 - -
=================================================================
30
<PAGE>
Note 7--Credit Facility
Effective July 14, 1993, the Plan established a 364-day
$50 million revolving credit facility with NationsBank of Texas,
N.A., for the purpose of financing net Fund B and Fund C
distributions, participant loans from the Plan, or transfer of
participants' interests to other funds of the Plan. The interest
rate may not exceed the Eurodollar interbank offered rate plus
0.25%. On December 31, 1993, no portion of this credit facility
was outstanding.
Effective June 17, 1994, this credit facility was reduced to
$25 million. The Plan Trustee requested that the credit facility
be renewed for this reduced amount for an additional year.
Note 8--Transactions with Parties-in-Interest
During 1993, 1992 and 1991, the Plan received $26,079,000,
$30,231,000 and $30,513,000, respectively, in common stock
dividends from the Company. Fees paid for legal, accounting, and
other services rendered by parties-in-interest were based on
customary and reasonable rates for such services.
Note 9--Taxes
The Internal Revenue Service has determined that the Plan, as
amended through December 5, 1990, is qualified under Section
401(a) of the Internal Revenue Code of 1986 and the Trust is
exempt from federal income tax under Section 501(a). Subsequent
amendments are not expected to affect the qualified status of the
Plan. The Committee is not aware of any activity that would
affect the qualified status of the Plan.
31
<PAGE>
- - - ------------------------------------------------------------------------------
Schedule of Assets Held for Thrift Plan Of Phillips
Investment Purposes Petroleum Company
Item 27a EIN 73-0400345, Plan No. 002
At December 31, 1993
Description of investment Thousands of Dollars
Identity of issue, including maturity date, rate of --------------------
borrower, lessor, or interest, collateral, par or Historical Current
similar party maturity value Cost Value
- - - ---------------------- -------------------------------- ---------- ---------
Phillips Petroleum Common stock, $1.25 par value,
Company* 21,881,604 shares $322,111 634,567
-------- ---------
Bankers Trust Company* 38,021.889 units, BT Pyramid
Equity Index Fund 37,590 37,590
19,105,193.88 units, BT Pyramid
Government Securities Cash Fund 19,106 19,106
19,665,294.72 units, BT Pyramid
Discretionary Cash Fund 19,665 19,665
-------- ---------
76,361 76,361
-------- ---------
Wells Fargo 8,829,388 units, Wells Fargo
Institutional Trust Government/Corporate Bond
Company* Index Fund E 90,558 90,558
-------- ---------
Thrift Plan of Loans to Plan participants 14,157 14,157
Phillips Petroleum -------- ---------
Company
Travelers Insurance Group Annuity Contract GR-15505,
Company* deposit administration account 178,356 178,356
Group Annuity Contract GR-1966A,
deferred settlement account 1,233 1,233
Prudential Insurance Group Annuity Contract GA-5991,
Company of America* deposit administration account 71,323 71,323
32
<PAGE>
- - - ------------------------------------------------------------------------------
Schedule of Assets Held for Thrift Plan Of Phillips
Investment Purposes Petroleum Company
Item 27a EIN 73-0400345, Plan No. 002
At December 31, 1993
Description of investment Thousands of Dollars
Identity of issue, including maturity date, rate of --------------------
borrower, lessor, or interest, collateral, par or Historical Current
similar party maturity value Cost Value
- - - ---------------------- -------------------------------- ---------- ---------
Continental Assurance Group Annuity Contract GP-12692,
Company* deposit administration account 63,945 63,945
Group Annuity Contract GP-12787,
deposit administration account 25,270 25,270
Provident National Group Annuity Contract
Assurance* GC-027-05048, deposit
administration account 62,994 62,994
-------- ---------
403,121 403,121
-------- ---------
$906,308 1,218,764
======== =========
*Party-in-interest
33
<PAGE>
- - - ------------------------------------------------------------------------------
Schedule of Reportable Transactions Thrift Plan Of Phillips
Item 27d Petroleum Company
EIN 73-0400345, Plan No. 002
Year Ended December 31, 1993
Thousands of Dollars
Total Total --------------------------------
number of number of Gain or
Identity of party purchases sales Value (loss) as
involved and during the during the Value of of a result of
description of asset plan year plan year purchases* sales* transactions
- - - --------------------- ---------- ---------- ---------- ------ ------------
Bankers Trust Company,
BT Pyramid
Government
Securities Cash Fund 308 169 $215,275 224,050 -
Wells Fargo
Institutional Trust
Company, Wells Fargo
Government/Corporate
Bond Index Fund E 29 19 $ 96,987 13,473 802
Phillips Petroleum
Company Common Stock 40 118 $ 35,185 104,079 54,954
*This is also the current value at time of transaction.
34
<PAGE>
Exhibit 1
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration
Statement (Form S-8, File No. 33-50134) pertaining to the Thrift
Plan of Phillips Petroleum Company and in the related Prospectus of
our report dated June 22, 1994, with respect to the financial
statements and schedules of the Thrift Plan of Phillips Petroleum
Company included in this Annual Report (Form 11-K) for the year
ended December 31, 1993.
/s/ ERNST & YOUNG
-------------
ERNST & YOUNG
Tulsa, Oklahoma
June 22, 1994
35
<PAGE>
Exhibit 99(b)
FORM 11-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(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 33-50283
---------------------------------
LONG-TERM STOCK SAVINGS PLAN OF
PHILLIPS PETROLEUM COMPANY
(Full title of the Plan)
PHILLIPS PETROLEUM COMPANY
(Name of issuer of securities)
Bartlesville, Oklahoma 74004
(Address of principal executive office) (Zip code)
<PAGE>
FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements
--------------------
Financial statements of the Long-Term Stock Savings Plan of
Phillips Petroleum Company, filed as part of this annual report,
are listed in the accompanying index.
(b) Exhibits
--------
Exhibit 1 Consent of Ernst & Young.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Long-Term Stock Savings Plan Committee has duly caused
this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
LONG-TERM STOCK SAVINGS PLAN
OF PHILLIPS PETROLEUM COMPANY
/s/ D. R. Divelbiss
-----------------------------
D. R. Divelbiss
Member
Long-Term Stock Savings
Plan Committee
June 22, 1994
1
<PAGE>
- - - -----------------------------------------------------------------
Index To Financial Statements Long-Term Stock Savings Plan
And Schedules Of Phillips Petroleum Company
Page
Report of Independent Auditors ............................. 3
Financial Statements
Statements of Net Assets Available for Benefits
at December 31, 1993 and 1992
Total Plan ........................................... 4
Fund EP .............................................. 6
Fund K ............................................... 8
Fund L ............................................... 10
Temporary Fund ....................................... 12
Statements of Changes in Net Assets Available for
Benefits for the Years Ended December 31, 1993,
1992 and 1991
Total Plan ........................................... 5
Fund EP .............................................. 7
Fund K ............................................... 9
Fund L ............................................... 11
Temporary Fund ....................................... 13
Notes to Financial Statements ............................ 14
Supplemental Schedules
Schedule of Assets Held for Investment Purposes at
December 31, 1993 ...................................... 18
Schedule of Reportable Transactions for the Year Ended
December 31, 1993 ...................................... 19
2
<PAGE>
- - - ------------------------------------------------------------------
Report Of Independent Auditors
The Long-Term Stock Savings Plan Committee
Long-Term Stock Savings Plan of Phillips Petroleum Company
We have audited the financial statements of the Long-Term Stock
Savings Plan of Phillips Petroleum Company (Plan) listed in the
accompanying index to financial statements and schedules. These
financial statements are the responsibility of the Long-Term Stock
Savings Plan Committee (Committee). 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 the Committee, 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 listed in the
accompanying index to financial statements and schedules present
fairly, in all material respects, the net assets available for
benefits of the Plan at December 31, 1993 and 1992, and the
changes in net assets available for plan benefits for each of the
three years in the period ended December 31, 1993, in conformity
with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the
basic financial statements taken as a whole. The accompanying
supplemental schedules of assets held for investment purposes as
of December 31, 1993, and reportable transactions for the year
ended December 31, 1993, are presented for purposes of complying
with the Department of Labor's Rules and Regulations for Reporting
and Disclosure under the Employee Retirement Income Security Act
of 1974, and are not a required part of the basic financial
statements. The supplemental schedules have been subjected to the
auditing procedures applied in our audit of the 1993 financial
statements and, in our opinion, are fairly stated in all material
respects in relation to the 1993 basic financial statements taken
as a whole.
/s/ ERNST & YOUNG
-------------
ERNST & YOUNG
Tulsa, Oklahoma
June 22, 1994
3
<PAGE>
- - - -----------------------------------------------------------------
Statement Of Net Assets Long-Term Stock Savings Plan
Available For Benefits Of Phillips Petroleum Company
Thousands of Dollars
----------------------
At December 31 1993 1992
----------------------
Assets
Investments
Common stock $984,885 872,703
Commingled fund 7,073 10,123
- - - -----------------------------------------------------------------
991,958 882,826
Company Contributions Receivable
Before-tax deposits 79 38
Interest Receivable 27 33
- - - -----------------------------------------------------------------
Total Assets 992,064 882,897
- - - -----------------------------------------------------------------
Liabilities
Securities Acquisition Loans 527,850 554,050
Interest Payable 1,553 1,765
Stock Distributions Payable 26 -
Securities Purchased 148 220
Administrative Expenses Payable 100 100
- - - -----------------------------------------------------------------
Total Liabilities 529,677 556,135
- - - -----------------------------------------------------------------
Net Assets Available for Benefits $462,387 326,762
=================================================================
See Notes to Financial Statements.
4
<PAGE>
- - - -------------------------------------------------------------------
Statement Of Changes In Net Long-Term Stock Savings Plan
Assets Available For Benefits Of Phillips Petroleum Company
Thousands of Dollars
----------------------------------
Years Ended December 31 1993 1992 1991
----------------------------------
Additions
Company Contributions
Funds for debt service $ 6,605 13,216 23,990
Dividend replacement - - 1,427
Basic allocation requirements 286 188 -
Before-tax deposits 6,449 6,501 6,678
- - - -------------------------------------------------------------------
13,340 19,905 32,095
- - - -------------------------------------------------------------------
Investment Income (Loss)
Dividends 38,514 39,445 39,849
Interest 321 363 358
Net appreciation
(depreciation) 134,935 40,582 (75,771)
- - - -------------------------------------------------------------------
173,770 80,390 (35,564)
- - - -------------------------------------------------------------------
Other - 20 -
- - - -------------------------------------------------------------------
Total Additions (Deductions) 187,110 100,315 (3,469)
- - - -------------------------------------------------------------------
Deductions
Distributions to Participants
or Their Beneficiaries
Common stock 31,869 32,598 7,322
Cash 20 29 3
- - - -------------------------------------------------------------------
31,889 32,627 7,325
Interest Expense 19,496 24,015 37,037
Administrative Expense 100 100 198
- - - -------------------------------------------------------------------
Total Deductions 51,485 56,742 44,560
- - - -------------------------------------------------------------------
Net Increase (Decrease) 135,625 43,573 (48,029)
Net Assets Available for
Benefits
Beginning of Year 326,762 283,189 331,218
- - - -------------------------------------------------------------------
End of Year $462,387 326,762 283,189
===================================================================
See Notes to Financial Statements.
5
<PAGE>
- - - -----------------------------------------------------------------
Statement Of Net Assets Long-Term Stock Savings Plan
Available For Benefits Of Phillips Petroleum Company
FUND EP
Thousands of Dollars
------------------------
At December 31 1993 1992
------------------------
Assets
Investments
Common stock $170,772 155,462
Commingled fund 10 7
- - - -----------------------------------------------------------------
170,782 155,469
Interest Receivable 1 1
- - - -----------------------------------------------------------------
Total Assets 170,783 155,470
- - - -----------------------------------------------------------------
Liabilities
Stock Distributions Payable 18 -
Administrative Expenses Payable 100 100
- - - -----------------------------------------------------------------
Total Liabilities 118 100
- - - -----------------------------------------------------------------
Net Assets Available for Benefits $170,665 155,370
=================================================================
Number of Units 33,285,802 34,947,937
Unit Value $5.1272 4.4458
- - - -----------------------------------------------------------------
See Notes to Financial Statements.
6
<PAGE>
- - - -------------------------------------------------------------------
Statement Of Changes In Net Long-Term Stock Savings Plan
Assets Available For Benefits Of Phillips Petroleum Company
FUND EP
Thousands of Dollars
----------------------------------
Years Ended December 31 1993 1992 1991
----------------------------------
Additions
Investment Income (Loss)
Dividends $ 6,734 7,185 7,359
Interest 2 4 17
Net appreciation
(depreciation) 24,082 7,800 (14,013)
- - - -------------------------------------------------------------------
30,818 14,989 (6,637)
Other - 20 -
- - - -------------------------------------------------------------------
Total Additions (Deductions) 30,818 15,009 (6,637)
- - - -------------------------------------------------------------------
Deductions
Distributions to Participants
or Their Beneficiaries
Common stock 15,407 19,100 4,813
Cash 16 14 6
- - - -------------------------------------------------------------------
15,423 19,114 4,819
Administrative Expense 100 100 198
- - - -------------------------------------------------------------------
Total Deductions 15,523 19,214 5,017
- - - -------------------------------------------------------------------
Net Increase (Decrease) 15,295 (4,205) (11,654)
Net Assets Available for
Benefits
Beginning of Year 155,370 159,575 171,229
- - - -------------------------------------------------------------------
End of Year $170,665 155,370 159,575
===================================================================
See Notes to Financial Statements.
7
<PAGE>
- - - -----------------------------------------------------------------
Statement Of Net Assets Long-Term Stock Savings Plan
Available For Benefits Of Phillips Petroleum Company
FUND K
Thousands of Dollars
------------------------
At December 31 1993 1992
------------------------
Assets
Investments
Common stock $31,758 23,274
Commingled fund 503 264
- - - -----------------------------------------------------------------
32,261 23,538
Due from Temporary Fund 602 601
Interest Receivable 1 1
- - - -----------------------------------------------------------------
Total Assets 32,864 24,140
- - - -----------------------------------------------------------------
Liabilities
Securities Purchased 148 220
Stock Distributions Payable 1 -
- - - -----------------------------------------------------------------
Total Liabilities 149 220
- - - -----------------------------------------------------------------
Net Assets Available for Benefits $32,715 23,920
=================================================================
Number of Units 26,428,925 22,213,066
Unit Value $1.2379 1.0768
- - - -----------------------------------------------------------------
See Notes to Financial Statements.
8
<PAGE>
- - - -------------------------------------------------------------------
Statement Of Changes In Net Long-Term Stock Savings Plan
Assets Available For Benefits Of Phillips Petroleum Company
FUND K
Thousands of Dollars
---------------------------------
Years Ended December 31 1993 1992 1991
---------------------------------
Additions
Allocation of Deposits and
Earnings from Temporary
Fund $ 6,463 6,518 6,704
- - - -------------------------------------------------------------------
Investment Income (Loss)
Dividends 1,134 904 613
Interest 12 13 22
Net appreciation
(depreciation) 3,463 830 (1,436)
- - - -------------------------------------------------------------------
4,609 1,747 (801)
- - - -------------------------------------------------------------------
Total Additions 11,072 8,265 5,903
- - - -------------------------------------------------------------------
Deductions
Distributions to (refunds from)
Participants or Their
Beneficiaries
Common stock 2,278 1,883 355
Cash (1) - (1)
- - - -------------------------------------------------------------------
Total Deductions 2,277 1,883 354
- - - -------------------------------------------------------------------
Net Increase 8,795 6,382 5,549
Net Assets Available for
Benefits
Beginning of Year 23,920 17,538 11,989
- - - -------------------------------------------------------------------
End of Year $32,715 23,920 17,538
===================================================================
See Notes to Financial Statements.
9
<PAGE>
- - - -----------------------------------------------------------------
Statement Of Net Assets Long-Term Stock Savings Plan
Available For Benefits Of Phillips Petroleum Company
FUND L
Thousands of Dollars
------------------------
At December 31 1993 1992
------------------------
Assets
Investments
Common stock $782,355 693,967
Commingled fund 6,038 9,290
- - - -----------------------------------------------------------------
788,393 703,257
Interest Receivable 24 30
- - - -----------------------------------------------------------------
Total Assets* 788,417 703,287
- - - -----------------------------------------------------------------
Liabilities
Securities Acquisition Loans 527,850 554,050
Interest Payable 1,553 1,765
Stock Distributions Payable 7 -
- - - -----------------------------------------------------------------
Total Liabilities 529,410 555,815
- - - -----------------------------------------------------------------
Net Assets Available for Benefits $259,007 147,472
=================================================================
Number of Units 120,191,086 99,543,753
Unit Value** $1.6583 1.4368
- - - -----------------------------------------------------------------
See Notes to Financial Statements.
*The amount of total assets that was not allocated to
participants at December 31, 1993 and 1992 was $589,098 thousand
and $560,265 thousand, respectively.
**Unit value calculated on assets allocated to participants only.
10
<PAGE>
- - - -------------------------------------------------------------------
Statement Of Changes In Net Long-Term Stock Savings Plan
Assets Available For Benefits Of Phillips Petroleum Company
FUND L
Thousands of Dollars
----------------------------------
Years Ended December 31 1993 1992 1991
----------------------------------
Additions
Company Contributions
Funds for debt service $ 6,605 13,216 23,990
Dividend replacement - - 1,427
Basic allocation requirements 286 188 -
- - - -------------------------------------------------------------------
6,891 13,404 25,417
- - - -------------------------------------------------------------------
Investment Income (Loss)
Dividends 30,646 31,356 31,877
Interest 293 329 293
Net appreciation
(depreciation) 107,390 31,952 (60,322)
- - - -------------------------------------------------------------------
138,329 63,637 (28,152)
- - - -------------------------------------------------------------------
Total Additions (Deductions) 145,220 77,041 (2,735)
- - - -------------------------------------------------------------------
Deductions
Distributions to (refunds from)
Participants or Their
Beneficiaries
Common stock 14,184 11,615 2,154
Cash 5 15 (2)
- - - -------------------------------------------------------------------
14,189 11,630 2,152
Interest Expense 19,496 24,015 37,037
- - - -------------------------------------------------------------------
Total Deductions 33,685 35,645 39,189
- - - -------------------------------------------------------------------
Net Increase (Decrease) 111,535 41,396 (41,924)
Net Assets Available for
Benefits
Beginning of Year 147,472 106,076 148,000
- - - -------------------------------------------------------------------
End of Year $259,007 147,472 106,076
===================================================================
See Notes to Financial Statements.
11
<PAGE>
- - - -----------------------------------------------------------------
Statement Of Net Assets Long-Term Stock Savings Plan
Available For Benefits Of Phillips Petroleum Company
TEMPORARY FUND
Thousands of Dollars
--------------------
At December 31 1993 1992
--------------------
Assets
Investments
Commingled fund $522 562
Company Contributions Receivable
Before-tax deposits 79 38
Interest Receivable 1 1
- - - -----------------------------------------------------------------
Total Assets 602 601
Liabilities
Due to Fund K 602 601
- - - -----------------------------------------------------------------
Net Assets Available for Benefits $ - -
=================================================================
See Notes to Financial Statements.
12
<PAGE>
- - - -------------------------------------------------------------------
Statement Of Changes In Net Long-Term Stock Savings Plan
Assets Available For Benefits Of Phillips Petroleum Company
TEMPORARY FUND
Thousands of Dollars
--------------------------------
Years Ended December 31 1993 1992 1991
--------------------------------
Additions
Company Contributions
Before-tax deposits $6,449 6,501 6,678
Investment Income
Interest 14 17 26
- - - -------------------------------------------------------------------
Total Additions 6,463 6,518 6,704
- - - -------------------------------------------------------------------
Deductions
Allocation of Deposits and
Earnings to Fund K 6,463 6,518 6,704
- - - -------------------------------------------------------------------
Net Increase - - -
Net Assets Available for
Benefits
Beginning of Year - - -
- - - -------------------------------------------------------------------
End of Year $ - - -
===================================================================
See Notes to Financial Statements.
13
<PAGE>
- - - -----------------------------------------------------------------
Notes To Financial Statements Long-Term Stock Savings Plan
Of Phillips Petroleum Company
Note 1--Plan Description
The following description of the Plan is subject to and qualified
by the more complete information appearing in the Plan document.
The Plan became effective July 1, 1988, and is a defined
contribution plan available to certain employees of Phillips
Petroleum Company and participating subsidiaries (Company).
Generally, any regular employee on the direct dollar payroll of
the Company is eligible to participate, except non-managerial
retail marketing outlet employees.
The Company has a trust agreement with Bankers Trust Company,
280 Park Avenue, New York, New York 10017 (Trustee). Plan
investments are held by the Trustee in the Temporary Fund,
Fund K, Fund L and Fund EP. Temporary Fund investments consist
of specified short-term securities. Funds K, L and EP are
invested primarily in common stock of Phillips Petroleum Company
(Phillips Stock).
Fund L consists of Phillips Stock purchased with the proceeds of
the loans described in Note 2 and Note 5 or with Company
contributions. The Phillips Stock will be allocated to Fund L
accounts of eligible participants. The Plan provides for three
types of stock allocations: semiannual basic allocations,
dividend replacement allocations and supplemental allocations. A
basic allocation will be made as of June 30 and December 31 of
each year. Prior to 1999, 716,846 shares of stock will be
divided among or "allocated to" the Fund L accounts of eligible
participants as of each June 30 and December 31. After 1998 and
through the later of 2003 or the allocation date following the
date the second loan is repaid, the number of shares to be
allocated semiannually will be 477,876. A participant's
semiannual basic allocation is based on the ratio of the
participant's Fund K before-tax deposits to all eligible
participants' before-tax deposits for the allocation period (both
net of Fund K withdrawals during the period). If the Company
does not elect to make a special contribution and if eligible
dividends from participants' Fund L or Fund EP accounts are used
to make loan payments, participants will receive a dividend
replacement allocation. In 1993, the Plan used $11.8 million in
dividends from participants' Fund L and Fund EP accounts and
allocated 400,290 shares valued at $29.38 per share in dividend
replacement allocations. In 1992, the Plan used $10.8 million in
dividends from participants' Fund L and Fund EP accounts and
allocated 434,518 shares valued at $24.75 per share in dividend
replacement allocations. A supplemental allocation will be made
each year-end if all shares released for allocation, based on
loan payment provisions, have not been allocated.
14
<PAGE>
The Company makes contributions to the Plan which, when
aggregated with the Plan's dividends from Funds L and EP and
interest earnings from Fund L, equal the amount necessary to
enable the Plan to make its regularly scheduled payments of
principal and interest due on its loans. The Company may also
elect to make dividend replacement contributions to the Plan, as
an alternative to utilizing the dividends from shares in Fund EP
or allocated shares in Fund L. Finally, the Company may make
contributions to the Plan in the amount necessary to bring the
number of shares of stock released for allocation up to the level
required to complete the basic allocation.
Eligible employees may elect to have their salaries reduced and
before-tax deposits made by the Company on their behalf equal to
one percent of pay. These deposits are held in the Temporary
Fund up to 45 days, and then, with the earnings thereon, are
transferred into the employee's Fund K account. The interest of
participants in each fund is represented by units allocated to
them.
Assets of the Employee Stock Ownership Plan of Phillips Petroleum
Company (ESOP) and the Payroll Stock Ownership Plan of Phillips
Petroleum Company (PAYSOP), which were merged into the Plan on
July 1, 1988, are held in Fund EP and credited to eligible
participants' accounts.
Participants are always vested in their deposits and amounts
credited to their accounts. Total withdrawals from Funds K, L
and EP may be made upon the occurrence of specified events,
including attainment of age 59 1/2 (after December 31, 1998, for
Funds EP and L) or separation from service. Partial withdrawals
are permitted in cases of specified financial hardship and
certain other cases. For a participant who retires or becomes
totally disabled, distribution will be deferred to a date not
later than February of the year after the year age 70 1/2 is
attained. If the participant dies, distribution to a surviving
spouse beneficiary will be deferred to the second valuation date
prior to the date on which the participant would have attained
age 70 1/2. This deferral is revocable by the participant or the
surviving spouse. Distributions to non-spouse beneficiaries may
be deferred approximately five years.
Since January 1, 1993, a participant may elect a direct rollover
of the taxable portion of most distributions to an Individual
Retirement Account or another tax-qualified plan. The taxable
portion of any such distribution that is not rolled over directly
will be subject to 20 percent federal withholding.
The Plan is administered by the Long-Term Stock Savings Plan
Committee, the members of which are appointed by the Board of
Directors of Phillips Petroleum Company. Members of the
Committee serve without compensation, but are reimbursed by the
Company for necessary expenditures incurred in the discharge of
their duties. Administrative expenses of the Plan will be paid
15
<PAGE>
by the Trustee from assets of the Plan to the extent allowable by
law, unless paid by the Company. In 1993 and 1992, the Trustee
made cash payments of $100,000 for administrative expense to
Phillips from Fund EP. Plan administrative expenses of
approximately $437,000 and $406,000 were paid by Phillips to the
Trustee in 1993 and 1992, respectively.
Note 2--Securities Acquisition Loans
The Plan borrowed $250 million and $400 million (Loans) in 1988
and 1990, respectively, and purchased 14,336,918 and 14,159,292
shares of common stock from Phillips Petroleum Company
(Phillips), respectively. The shares are held in a Fund L
suspense account until allocated to eligible participants based
on the provisions of the Plan. At December 31, 1993 and 1992,
the market value of unallocated shares was $583 million and
$551 million, respectively.
The Loans are guaranteed by Phillips. They are being repaid
through contributions made by the Company, dividends on
unallocated and certain allocated shares and earnings on the
short-term investment of contributions and dividends. The notes
payable under the $250 million loan had scheduled maturities
through 1998. (See Note 5 for information regarding the
refinancing of these notes.) Annual installments of $25 million
and $24 million were paid on the notes in 1993 and 1992,
respectively.
The $400 million loan is a fifteen-year-term bank loan. Any
participating bank in the syndicate of lenders may cease to
participate on November 30, 1997, by giving not less than 180
days prior notice to the Plan and Phillips. Also, each bank
participating in the loan has the optional right, if the current
directors of Phillips or their approved successors cease to be a
majority of the Board, and upon not less than 90 days' notice, to
cease to participate in the loan. Under the above conditions,
such banks' rights and obligations under the loan agreement must
be purchased by Phillips if not transferred to another bank of
Phillips' choice. Repayment of the loan is scheduled to begin in
1999 with a $30 million installment, increasing each year through
the date of maturity. Early payments of $900 thousand and
$2 million were made on the loan in 1993 and 1992, respectively.
The Loans provide for variable interest rates. At December 31,
1993 and 1992, the rates were 2.91% and 3.25%, respectively, for
the $250 million loan. The rates for the $400 million loan at
December 31, 1993 and 1992, were 3.63% and 4.31%, respectively.
Note 3--Investments
Phillips Stock is valued at the closing quoted market price. For
commingled funds, cost and market value are the same.
16
<PAGE>
Note 4--Taxes
The Internal Revenue Service has determined that the Plan, as
amended through November 9, 1990, is qualified under Section
401(a) of the Internal Revenue Code of 1986 and the Trust is
exempt from federal income tax under Section 501(a). Subsequent
amendments have been adopted, but are not expected to affect the
qualified status of the Plan. The Committee is not aware of any
activity that would affect the qualified status of the Plan.
Note 5--Subsequent Event
During April 1994, the Plan signed a $131 million term loan
agreement to refinance the outstanding notes payable issued in
1988, which were redeemed on May 16, 1994. The new term loan
will be repaid in annual installments of $17.4 million,
$25.6 million, $27.5 million, $29.4 million and $31.1 million in
the years 1994 through 1998. The Company continues to guarantee
the payment of Plan debt.
17
<PAGE>
- - - ------------------------------------------------------------------------------
Schedule of Assets Held for Long-Term Stock Savings Plan
Investment Purposes Of Phillips Petroleum Company
Item 27a EIN 73-0400345, Plan 022
At December 31, 1993
Description of investment Thousands of Dollars
Identity of issue, including maturity date, rate of --------------------
borrower, lessor, or interest, collateral, par or Historical Current
similar party maturity value Cost Value
- - - ---------------------- -------------------------------- ---------- -------
Phillips Petroleum 33,961,553 shares of common
Company* stock, $1.25 par value $704,625 984,885
Bankers Trust Company* 7,072,963 units of participation
in General Employee Benefit
Trust, BT Pyramid Government
Securities Cash Fund 7,073 7,073
-------- -------
$711,698 991,958
======== =======
*Party-in-interest
18
<PAGE>
- - - ------------------------------------------------------------------------------
Schedule of Reportable Transactions Long-Term Stock Savings Plan of
Item 27d Phillips Petroleum Company
EIN 73-0400345, Plan 022
Year Ended December 31, 1993
Thousands of Dollars
Total Total -------------------------------
number of number of Gain or
Identity of party purchases sales Value (loss) as
involved and during the during the Value of of a result of
description of asset plan year plan year purchases* sales* transactions
- - - --------------------- ---------- ---------- ---------- ------ ------------
Bankers Trust Company
General Employee
Benefit Trust, BT
Pyramid Government
Securities Cash
Fund 215 279 $59,274 62,323 -
*This is also the current value at time of transaction.
19
<PAGE>
Exhibit 1
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration
Statement (Form S-8, File No. 33-50283) pertaining to the Long-
Term Stock Savings Plan of Phillips Petroleum Company and in the
related Prospectus of our report dated June 22, 1994, with
respect to the financial statements and schedules of the
Long-Term Stock Savings Plan of Phillips Petroleum Company
included in this Annual Report (Form 11-K) for the year ended
December 31, 1993.
/s/ ERNST & YOUNG
-------------
ERNST & YOUNG
Tulsa, Oklahoma
June 22, 1994
20
<PAGE>
Exhibit 99(c)
FORM 11-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(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 33-28669
---------------------------------
RETIREMENT SAVINGS PLAN OF
PHILLIPS PETROLEUM COMPANY SUBSIDIARIES
(Full title of the Plan)
PHILLIPS PETROLEUM COMPANY
(Name of issuer of securities)
Bartlesville, Oklahoma 74004
(Address of principal executive office) (Zip code)
<PAGE>
FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements
--------------------
Financial statements of the Retirement Savings Plan of Phillips
Petroleum Company Subsidiaries, filed as a part of this annual
report, are listed in the accompanying index.
(b) Exhibits
--------
Exhibit 1 Consent of Ernst & Young.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Retirement Savings Plan Committee has duly caused this
annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
RETIREMENT SAVINGS PLAN OF
PHILLIPS PETROLEUM COMPANY SUBSIDIARIES
/s/ L. F. Francis
---------------------------------------
L. F. Francis
Member
Retirement Savings Plan Committee
June 22, 1994
1
<PAGE>
- - - -----------------------------------------------------------------
Index To Financial Statements Retirement Savings Plan Of
And Schedule Phillips Petroleum Company
Subsidiaries
Page
Report of Independent Auditors ............................. 3
Financial Statements
Statement of Net Assets Available for Benefits
at December 31, 1993 ................................... 4
Statement of Net Assets Available for Benefits
at December 31, 1992 ................................... 5
Statement of Changes in Net Assets Available for Benefits
for the Year Ended December 31, 1993 ................... 6
Statement of Changes in Net Assets Available for Benefits
for the Year Ended December 31, 1992 ................... 7
Statement of Changes in Net Assets Available for Benefits
for the Year Ended December 31, 1991 ................... 8
Notes to Financial Statements ............................ 9
Supplemental Schedule
Schedule of Assets Held for Investment Purposes at
December 31, 1993 ...................................... 12
2
<PAGE>
- - - ------------------------------------------------------------------
Report Of Independent Auditors
The Retirement Savings Plan Committee
Retirement Savings Plan of Phillips
Petroleum Company Subsidiaries
We have audited the financial statements of the Retirement Savings
Plan of Phillips Petroleum Company Subsidiaries (Plan) listed in
the accompanying index to financial statements and schedule.
These financial statements are the responsibility of the
Retirement Savings Plan Committee (Committee). 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 the Committee, 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 listed in the
accompanying index to financial statements and schedule present
fairly, in all material respects, the net assets available for
benefits of the Plan at December 31, 1993 and 1992, and the
changes in net assets available for plan benefits for each of the
three years in the period ended December 31, 1993, in conformity
with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the
basic financial statements taken as a whole. The accompanying
supplemental schedule of assets held for investment purposes as of
December 31, 1993, is presented for purposes of complying with the
Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of
1974, and is not a required part of the basic financial
statements. The supplemental schedule has been subjected to the
auditing procedures applied in our audit of the 1993 financial
statements and, in our opinion, is fairly stated in all material
respects in relation to the 1993 basic financial statements taken
as a whole.
/s/ ERNST & YOUNG
-------------
ERNST & YOUNG
Tulsa, Oklahoma
June 22, 1994
3
<PAGE>
- - - --------------------------------------------------------------------
Statement Of Net Assets Retirement Savings Plan Of
Available For Benefits Phillips Petroleum Company
Subsidiaries
At December 31, 1993
Fixed Temporary
Investment Stock Investment
Total Fund Fund Fund
--------------------------------------------
Assets
Investments
Insurance contract $11,502,213 11,502,213 - -
Common stock 538,994 - 538,994 -
Money market fund 15,186 - 6,185 9,001
- - - --------------------------------------------------------------------
12,056,393 11,502,213 545,179 9,001
Cash 201 - 100 101
Interest Receivable 32 - 15 17
Employee Deposits
Receivable 9,229 - - 9,229
Employer Contributions
Receivable 22,809 22,809 - -
Interfund Receivable
(Payable) - 17,467 881 (18,348)
- - - --------------------------------------------------------------------
Total Assets 12,088,664 11,542,489 546,175 -
Liabilities
Cash Distributions
Payable 202,891 202,891 - -
- - - --------------------------------------------------------------------
Net Assets Available
for Benefits $11,885,773 11,339,598 546,175 -
====================================================================
Number of Units 3,296,259 148,835
Unit Values $3.4401 3.6697
- - - --------------------------------------------------------------------
See Notes to Financial Statements.
4
<PAGE>
- - - --------------------------------------------------------------------
Statement Of Net Assets Retirement Savings Plan Of
Available For Benefits Phillips Petroleum Company
Subsidiaries
At December 31, 1992
Fixed Temporary
Investment Stock Investment
Total Fund Fund Fund
--------------------------------------------
Assets
Investments
Insurance contract $10,833,871 10,833,871 - -
Common stock 445,240 - 445,240 -
Money market fund 19,023 - 10,357 8,666
- - - --------------------------------------------------------------------
11,298,134 10,833,871 455,597 8,666
Cash 201 - 100 101
Interest Receivable 45 - 27 18
Employee Deposits
Receivable 8,603 - - 8,603
Employer Contributions
Receivable 21,530 21,530 - -
Interfund Receivable
(Payable) - 16,988 400 (17,388)
- - - --------------------------------------------------------------------
Total Assets 11,328,513 10,872,389 456,124 -
Liabilities
Cash Distributions
Payable 49,304 49,304 - -
- - - --------------------------------------------------------------------
Net Assets Available
for Benefits $11,279,209 10,823,085 456,124 -
====================================================================
Number of Units 3,390,305 147,975
Unit Values $3.1924 3.0824
- - - --------------------------------------------------------------------
See Notes to Financial Statements.
5
<PAGE>
- - - ----------------------------------------------------------------------
Statement Of Changes In Net Retirement Savings Plan Of
Assets Available For Benefits Phillips Petroleum Company
Subsidiaries
Year Ended December 31, 1993
Fixed Temporary
Investment Stock Investment
Total Fund Fund Fund
--------------------------------------------
Additions
Contributions and Deposits
Participating Employer
contributions $ 529,518 529,518 - -
Employee deposits 109,001 - - 109,001
- - - ----------------------------------------------------------------------
638,519 529,518 - 109,001
- - - ----------------------------------------------------------------------
Investment Income
Interest 814,891 814,493 211 187
Dividends 20,364 - 20,364 -
Net appreciation 66,240 - 66,240 -
- - - ----------------------------------------------------------------------
901,495 814,493 86,815 187
- - - ----------------------------------------------------------------------
Total Additions 1,540,014 1,344,011 86,815 109,188
- - - ----------------------------------------------------------------------
Deductions
Cash Withdrawals and
Distributions 927,850 927,850 - -
Forfeitures 5,600 5,600 - -
- - - ----------------------------------------------------------------------
Total Deductions 933,450 933,450 - -
- - - ----------------------------------------------------------------------
Allocation of Deposits
and Earnings - 105,952 3,236 (109,188)
- - - ----------------------------------------------------------------------
Net Increase 606,564 516,513 90,051 -
Net Assets Available
for Benefits
Beginning of Year 11,279,209 10,823,085 456,124 -
- - - ----------------------------------------------------------------------
End of Year $11,885,773 11,339,598 546,175 -
======================================================================
See Notes to Financial Statements.
6
<PAGE>
- - - ----------------------------------------------------------------------
Statement Of Changes In Net Retirement Savings Plan Of
Assets Available For Benefits Phillips Petroleum Company
Subsidiaries
Year Ended December 31, 1992
Fixed Temporary
Investment Stock Investment
Total Fund Fund Fund
--------------------------------------------
Additions
Contributions and Deposits
Participating Employer
contributions $ 250,828 250,828 - -
Employee deposits 110,645 - - 110,645
- - - ----------------------------------------------------------------------
361,473 250,828 - 110,645
- - - ----------------------------------------------------------------------
Investment Income
Interest 842,893 842,385 265 243
Dividends 19,609 - 19,609 -
Net appreciation 18,935 - 18,935 -
- - - ----------------------------------------------------------------------
881,437 842,385 38,809 243
- - - ----------------------------------------------------------------------
Total Additions 1,242,910 1,093,213 38,809 110,888
- - - ----------------------------------------------------------------------
Deductions
Cash Withdrawals and
Distributions 402,225 402,225 - -
Forfeitures 9,560 9,560 - -
- - - ----------------------------------------------------------------------
Total Deductions 411,785 411,785 - -
- - - ----------------------------------------------------------------------
Allocation of Deposits
and Earnings - 107,125 3,763 (110,888)
- - - ----------------------------------------------------------------------
Interfund Transfers - 5,773 (5,773) -
- - - ----------------------------------------------------------------------
Net Increase 831,125 794,326 36,799 -
Net Assets Available
for Benefits
Beginning of Year 10,448,084 10,028,759 419,325 -
- - - ----------------------------------------------------------------------
End of Year $11,279,209 10,823,085 456,124 -
======================================================================
See Notes to Financial Statements.
7
<PAGE>
- - - ----------------------------------------------------------------------
Statement Of Changes In Net Retirement Savings Plan Of
Assets Available For Benefits Phillips Petroleum Company
Subsidiaries
Year Ended December 31, 1991
Fixed Temporary
Investment Stock Investment
Total Fund Fund Fund
--------------------------------------------
Additions
Contributions and Deposits
Participating Employer
contributions $ 252,358 252,358 - -
Employee deposits 108,816 - - 108,816
- - - ----------------------------------------------------------------------
361,174 252,358 - 108,816
- - - ----------------------------------------------------------------------
Investment Income
Interest 847,187 846,267 520 400
Dividends 19,092 - 19,092 -
Net depreciation (37,876) - (37,876) -
- - - ----------------------------------------------------------------------
828,403 846,267 (18,264) 400
- - - ----------------------------------------------------------------------
Total Additions
(Deductions) 1,189,577 1,098,625 (18,264) 109,216
- - - ----------------------------------------------------------------------
Deductions
Cash Withdrawals and
Distributions 366,288 366,288 - -
Forfeitures 3,591 3,591 - -
- - - ----------------------------------------------------------------------
Total Deductions 369,879 369,879 - -
- - - ----------------------------------------------------------------------
Allocation of Deposits
and Earnings - 101,915 7,301 (109,216)
- - - ----------------------------------------------------------------------
Interfund Transfers - 19,710 (19,710) -
- - - ----------------------------------------------------------------------
Net Increase (Decrease) 819,698 850,371 (30,673) -
Net Assets Available
for Benefits
Beginning of Year 9,628,386 9,178,388 449,998 -
- - - ----------------------------------------------------------------------
End of Year $10,448,084 10,028,759 419,325 -
======================================================================
See Notes to Financial Statements.
8
<PAGE>
- - - -----------------------------------------------------------------
Notes To Financial Statements Retirement Savings Plan Of
Phillips Petroleum Company
Subsidiaries
Note 1--Plan Description
The following description of the Retirement Savings Plan of
Phillips Petroleum Company Subsidiaries (Plan) is subject to and
qualified by the more complete information appearing in the Plan
document.
The Plan is a defined contribution plan sponsored by Phillips
Petroleum Company (Company) for any subsidiary which the Company
approves for participation in the Plan and which has adopted and
become a party to the Plan for the current participation of their
active employees (Participating Employer). For the three-year
period ending December 31, 1993, Phillips Driscopipe, Inc. (with
respect to hourly employees only) was the only Participating
Employer.
Other subsidiaries having present or former employees holding
interests in the Plan are Catalyst Resources, Inc. (sold
March 30, 1994), Drilling Specialties Company, Phillips Coal
Company and Phillips Uranium Corporation (now liquidated).
Generally, an employee of a Participating Employer becomes a
participant after completing a six-month period of service of 500
or more hours. Participation in the Plan by each eligible
employee is mandatory. Although not required to do so, a
participant may make deposits, in whole percentages, ranging from
1 to 10 percent of his regular monthly earnings. A participant
may elect to change his deposit rate once each six months.
Phillips Driscopipe, Inc. contributes an amount equal to
5 percent of a participant's regular monthly earnings.
Deposits and contributions are placed in a Trust fund which is
administered by the WestStar Bank, N.A., Bartlesville, Oklahoma
(Trustee). The Trust fund consists of the Stock Fund, the Fixed
Investment Fund and the Temporary Investment Fund. Investments
for each fund are as follows: Stock Fund (common stock of the
Company); Fixed Investment Fund (an insurance contract with The
Travelers Insurance Company under which Travelers guarantees
repayment of the principal paid to it and a minimum effective
rate of interest thereon) and Temporary Investment Fund
(specified short-term securities). The interest of participants
in each fund is represented by units allocated to them. Unit
values reflected in the accompanying statements are based on
aggregate fund values and aggregate units.
Participant deposits are placed first in the Temporary Investment
Fund for about 30 days. Deposits and earnings thereon are then
paid into the Stock Fund or the Fixed Investment Fund as directed
by the participant. Participants may direct that their deposits
9
<PAGE>
be invested entirely in either the Stock Fund or Fixed Investment
Fund or allocated between them in multiples of 10 percent. No
investment directions may be made with respect to Participating
Employer contributions, all of which are invested only in the
Fixed Investment Fund. Investment directions may be changed once
each year.
The Plan allows limited transfers between the Stock Fund and the
Fixed Investment Fund.
A participant's interest in his own deposits is vested at all
times. His interest in Participating Employer contributions
becomes fully vested on the earliest of the following dates:
(a) upon attainment of age 65 or upon his normal retirement;
(b) upon completing five years of vesting service; (c) upon his
death; (d) upon becoming totally disabled; (e) upon being laid
off for lack of work; (f) upon termination or partial termination
of the Plan or discontinuance of Participating Employer
contributions; or (g) upon certain other events.
Partial vesting takes place in one year increments, with complete
vesting after five years of vesting service. A participant who
has made deposits may withdraw any amount attributable to those
deposits. Withdrawals of deposits may be made only once each six
months. Suspensions of three and six months apply for partial
and complete withdrawals, respectively.
A participant's interest in the contributions of a Participating
Employer becomes available for distribution upon specified
events, including separation from service or retirement.
Termination of employment will result in forfeiture of
Participating Employer contributions if a participant's interest
attributable to those Participating Employer contributions is not
vested. A participant who retires may elect a special deferral
to a date no later than the February valuation date following the
year of attainment of age 70 1/2.
Distributions from the Fixed Investment Fund are in cash while
those from the Stock Fund are in whole shares of the Company's
common stock plus cash for fractional shares unless the
participant directs that the distribution be wholly or partially
in cash. Distribution in the form of an annuity is also
available, as set forth in the Plan.
In the event of termination of the Plan, participants and
beneficiaries of deceased participants will be vested with
respect to, and will receive, within a reasonable time, any funds
in their accounts as of the date of the termination.
The Plan is administered by the Retirement Savings Plan
Committee, a Plan Financial Administrator and a Plan Benefits
Administrator. The members of the Committee are appointed by the
10
<PAGE>
Board of Directors of the Company. The Committee has power to
interpret the Plan and the Plan Benefits Administrator has the
authority to determine eligibility for benefits. Brokerage fees,
commissions, stock transfer taxes and other charges and expenses
incurred in connection with the purchase or sale of securities
are paid by the Plan. The cost of administering the Plan is
shared by the Participating Employers on a mutually agreeable
basis.
Note 2--Investments
Common stock of the Company is valued at the closing quoted
market price on the valuation date. The value of the insurance
contract represents contributions plus interest credited less
distributions. The money market fund is valued at the current
redemption price determined by the Trustee.
Note 3--Taxes
The Internal Revenue Service (IRS) has determined that the Plan,
as amended through October 28, 1985, is qualified under Section
401(a) of the Internal Revenue Code of 1986 and the Trust is
exempt from federal income tax under Section 501(a). Subsequent
amendments have been adopted, but are not expected to affect the
qualified status of the Plan. The Committee is not aware of any
activity that would affect the qualified status of the Plan.
Note 4--Additional Company Contributions
In accordance with the Plan document and Treasury regulations,
the Company made additional contributions totaling $258,745 to
the Plan in 1993 related to Plan years 1987, 1988 and 1989.
These contributions were required by retroactive application of
new requirements under Internal Revenue Code Section 414(s),
which provides rules for nondiscrimination in the definition of
plan compensation. The change in the definition of compensation
resulted in additional benefits and additional required
contributions.
11
<PAGE>
- - - ------------------------------------------------------------------------------
Schedule of Assets Held for Retirement Savings Plan Of
Investment Purposes Phillips Petroleum Company
Item 27a Subsidiaries
EIN 73-0400345, Plan 010
At December 31, 1993
Description of investment Thousands of Dollars
Identity of issue, including maturity date, rate of -----------------------
borrower, lessor, interest, collateral, par or Historical Current
or similar party maturity value Cost Value
- - - -------------------- -------------------------------- ----------- ----------
The Travelers Group Annuity Contract GR-10462,
Insurance Company* deposit administration fund $11,502,213 11,502,213
Phillips Petroleum 18,586 shares of common stock,
Company* $1.25 par value 300,261 538,994
WestStar Bank, N.A.* 15,186 units of participation
in the Shearson Treasury Trust
Fund, a money market account 15,186 15,186
----------- ----------
$11,817,660 12,056,393
=========== ==========
*Party-in-interest
12
<PAGE>
Exhibit 1
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration
Statement (Form S-8, File No. 33-28669) pertaining to the
Retirement Savings Plan of Phillips Petroleum Company Subsidiaries
and in the related Prospectus of our report dated June 22, 1994,
with respect to the financial statements and schedule of the
Retirement Savings Plan of Phillips Petroleum Company Subsidiaries
included in this Annual Report (Form 11-K) for the year ended
December 31, 1993.
/s/ ERNST & YOUNG
-------------
ERNST & YOUNG
Tulsa, Oklahoma
June 22, 1994
13
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