SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
Annual Report Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
For the fiscal year ended June 30, 1995
Commission file number 1-12
Full title of the Plan and the address of the Plan,
if different from that of the issuer named below:
The Quaker Investment Plan
Name of issuer of the securities held pursuant to the Plan and
the address of its principal executive office:
The Quaker Oats Company
P.O. Box 049001
Chicago, Illinois 60604-9001
Item 1. See Item 4.
Item 2. See Item 4.
Item 3. See Item 4.
Item 4. Financial Statements and Exhibits
(a) Financial Statements
The Quaker Investment Plan is subject to the Employee
Retirement Income Security Act of 1974 ("ERISA"), and
the report of Washington, Pittman & McKeever,
independent public accountants, as prepared in
accordance with the financial reporting requirements of
ERISA is attached hereto and incorporated into this
report.
(b) Exhibit
Consent of Independent Public Accountants - Washington,
Pittman & McKeever.
SIGNATURES
The Plan. Pursuant to the requirements of the Securities
Exchange Act of 1934, the administrators of the Plan have duly
caused this annual report to be signed on their behalf by the
undersigned hereunto duly authorized.
The Quaker Investment Plan
(Name of Plan)
ROBERT C. PENZKOVER
(Robert C. Penzkover)
Director - Employee Benefits
DENNIS M. CORRY
(Dennis M. Corry)
Manager - Benefit Plans
MELANIE PHEATT
(Melanie Pheatt)
Date: December 8, 1995 Manager - Employee Benefits
2
Exhibit Index
Exhibit Paper (P) or
Number Description Electronic (E)
(a) The Quaker Investment E
Plan Financial Statements
as of June 30, 1995 and 1994
(b) Consent of Independent E
Public Accountants
3
Exhibit (a)
THE QUAKER OATS COMPANY
THE QUAKER INVESTMENT PLAN
FINANCIAL STATEMENTS
AS OF JUNE 30, 1995 AND 1994
TOGETHER WITH INDEPENDENT AUDITOR'S REPORT
4
THE QUAKER OATS COMPANY
THE QUAKER INVESTMENT PLAN
AS OF JUNE 30, 1995 AND 1994
TABLE OF CONTENTS
PAGE
INDEPENDENT AUDITOR'S REPORT 6
STATEMENTS OF NET ASSETS AVAILABLE FOR
BENEFITS 7-8
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE
FOR BENEFITS 9-10
NOTES TO FINANCIAL STATEMENTS 11-17
SCHEDULE OF ASSETS HELD FOR
INVESTMENT PURPOSES 18-19
SCHEDULE OF REPORTABLE TRANSACTIONS 20
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS 21
5
INDEPENDENT AUDITOR'S REPORT
To the Plan Committee of
THE QUAKER INVESTMENT PLAN
of The Quaker Oats Company
We have audited the accompanying Statements of Net Assets
Available for Benefits of The Quaker Investment Plan (the "Plan")
as of June 30, 1995 and 1994, and the related Statements of
Changes in Net Assets Available for Benefits for the years then
ended. These financial statements are the responsibility of the
Plan's management. Our responsibility is to express an opinion
on the 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 audits to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the net assets
available for benefits of the Plan as of June 30, 1995 and 1994,
and the changes in net assets available for benefits for the
years then ended 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 supplemental
Schedules of Assets Held for Investment Purposes and of
Reportable Transactions are presented for the purpose of
additional analysis and are not a required part of the basic
financial statements but are supplementary information required
by the Department of Labor's Rules and Regulations for Reporting
and Disclosure under the Employee Retirement Income Security Act
of 1974. The supplemental schedules have been subjected to the
auditing procedures applied in the audits of the basic financial
statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a
whole.
WASHINGTON, PITTMAN & MCKEEVER
Chicago, Illinois
December 8, 1995
6
<TABLE>
<CAPTION>
THE QUAKER OATS COMPANY
THE QUAKER INVESTMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF JUNE 30, 1995
(dollars in thousands)
Quaker Money
Stock Diversified Market Bond Loan
Total Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at market -
The Quaker Oats Company common stock
(2,786,859 shares, cost - $58,737) $ 90,918 $ 90,918 $ -- $ -- $ -- $ --
Marketable Securities (cost - $84,482) 103,293 -- 88,695 -- 14,598 --
Short-Term Investments (cost - $3,170) 3,189 -- 3,189 -- -- --
Collective Trust Short-Term
Investment Fund 64,609 453 9,239 54,494 423 --
262,009 91,371 101,123 54,494 15,021 --
Participant loans 7,892 -- -- -- -- 7,892
Total investments 269,901 91,371 101,123 54,494 15,021 7,892
Accrued dividends and interest receivable 1,319 801 248 267 3 --
Receivable for investments sold 521 303 218 -- -- --
Interfund transfers (payable) receivable -- (1,460) 937 545 (22) --
Total assets 271,741 91,015 102,526 55,306 15,002 7,892
LIABILITIES
Loans due to participants 293 163 41 83 6 --
Payable for investments purchased 384 -- 384 -- -- --
Total liabilities 677 163 425 83 6 --
NET ASSETS AVAILABLE FOR BENEFITS $ 271,064 $ 90,852 $ 102,101 $ 55,223 $ 14,996 $ 7,892
<FN>
See accompanying notes to financial statements.
7
<CAPTION>
THE QUAKER OATS COMPANY
THE QUAKER INVESTMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF JUNE 30, 1994 (Restated)
(dollars in thousands)
Quaker Money Fisher-
Stock Diversified Market Bond Loan Price
Total Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at market -
The Quaker Oats Company common stock
(2,950,350 shares, cost - $55,961) $ 102,890 $ 102,890 $ -- $ -- $ -- $ -- $ --
Marketable Securities (cost - $72,924) 78,356 -- 63,833 -- 14,523 -- --
Short-Term Investments (cost - $9,935) 9,961 -- 9,961 -- -- -- --
Collective Trust Short-Term
Investment Fund 53,897 507 8,041 45,005 344 -- --
245,104 103,397 81,835 45,005 14,867 -- --
Participant loans 10,579 -- -- -- -- 10,579 --
Total investments 255,683 103,397 81,835 45,005 14,867 10,579 --
Employee contributions receivable 71 23 46 -- 2 -- --
Accrued dividends and interest receivable 1,109 783 176 149 1 -- --
Receivable for investments sold 962 -- 962 -- -- -- --
Interfund transfers (payable) receivable -- (2,264) 1,224 2,068 (1,028) -- --
Total assets 257,825 101,939 84,243 47,222 13,842 10,579 --
LIABILITIES
Payable for investments purchased 1,848 99 1,749 -- -- -- --
NET ASSETS AVAILABLE FOR BENEFITS $ 255,977 $ 101,840 $ 82,494 $ 47,222 $ 13,842 $ 10,579 $ --
<FN>
See accompanying notes to financial statements.
8
<CAPTION>
THE QUAKER OATS COMPANY
THE QUAKER INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED JUNE 30, 1995
(dollars in thousands)
Quaker Money
Stock Diversified Market Bond Loan
Total Fund Funds Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS
Investment income:
Dividends $ 4,981 $ 3,252 $ 1,729 $ -- $ -- $ --
Interest 3,993 275 812 2,840 66 --
Total investment income 8,974 3,527 2,541 2,840 66 --
Realized gain on investments - (Note 5) 19,281 10,324 8,193 -- 764 --
Unrealized (loss) gain on investments -
(Note 6) (1,376) (14,748) 11,847 -- 1,525 --
Employee contributions 10,947 4,619 4,054 1,559 715 --
Contributions from other plans 1,504 451 506 348 199 --
Total additions 39,330 4,173 27,141 4,747 3,269 --
DEDUCTIONS
Distributions to participants 24,243 8,529 6,840 8,072 802 --
Increase (decrease) in net assets 15,087 (4,356) 20,301 (3,325) 2,467 --
Net assets available for benefits,
beginning of period 255,977 101,840 82,494 47,222 13,842 10,579
Interfund transfers, net -- (6,632) (694) 11,326 (1,313) (2,687)
NET ASSETS AVAILABLE FOR
BENEFITS, END OF PERIOD $ 271,064 $ 90,852 $ 102,101 $ 55,223 $ 14,996 $ 7,892
<FN>
See accompanying notes to financial statements.
9
<CAPTION>
THE QUAKER OATS COMPANY
THE QUAKER INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED JUNE 30, 1994 (Restated)
(dollars in thousands)
Quaker Money Fisher-
Stock Diversified Market Bond Loan Price
Total Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS
Investment income:
Dividends $ 4,301 $ 2,949 $ 1,300 $ -- $ -- $ -- $ 52
Interest 2,584 337 721 1,461 46 -- 19
Total investment income 6,885 3,286 2,021 1,461 46 -- 71
Realized gain on investments - (Note 5) 19,028 3,939 6,762 -- 992 -- 7,335
Unrealized (loss) on investments - (16,532) (10,543) (4,315) -- (1,674) -- --
(Note 6)
Employee contributions 11,790 5,209 4,054 1,621 906 -- --
Contributions from other plans 726 307 239 81 99 -- --
Total additions 21,897 2,198 8,761 3,163 369 -- 7,406
DEDUCTIONS
Distributions to participants 12,127 3,864 2,811 3,832 1,327 -- 293
Increase (decrease) in net assets 9,770 (1,666) 5,950 (669) (958) -- 7,113
Net assets available for benefits,
beginning of period 246,207 98,596 72,856 37,860 17,748 9,166 9,981
Interfund transfers, net -- 4,910 3,688 10,031 (2,948) 1,413 (17,094)
NET ASSETS AVAILABLE FOR
BENEFITS, END OF PERIOD $ 255,977 $ 101,840 $ 82,494 $ 47,222 $ 13,842 $ 10,579 $ --
<FN>
See accompanying notes to financial statements.
10
</TABLE>
THE QUAKER OATS COMPANY
THE QUAKER INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 1995 AND 1994
NOTE 1 - THE QUAKER INVESTMENT PLAN
The Quaker Investment Plan (the "Plan") covers salaried domestic
employees of The Quaker Oats Company (the "Company") and certain
domestic subsidiaries. The Plan is solely funded by employee
contributions. Under the Plan, eligible salaried employees may
accumulate funds on a pretax basis for long-term retirement
savings. Participants should refer to the Plan agreement for
more complete information. Salaried employees were eligible to
participate in the Plan after six months of employment and
acceptance as an approved employee, or after a twelve-month
period during which the employee had at least 998 hours of
employment and was still employed by the Company. Effective July
1, 1994, the Plan was amended to allow salaried employees
participation in the Plan on the date of employment or, if
employed less than six months, effective July 1, 1994. The Plan
is intended to qualify as a cash and deferred arrangement under
Section 401(k) of the Internal Revenue Code (the "Code") and is
subject to the provisions of the Employee Retirement Income
Security Act of 1974 (ERISA).
Effective November 30, 1993, Fisher-Price shareholders approved
the proposed merger with Mattel whereby each shareholder of
Fisher-Price received 1.275 shares of Mattel stock for each share
of Fisher-Price stock held. The Plan sponsor terminated the
Fisher-Price Fund and liquidated the Mattel stock following the
tender and exchange offer and allowed participants to transfer
the proceeds into the remaining funds. If no election was made
by the participant by the proposed deadline, the proceeds from
the Fisher-Price/Mattel merger were transferred to the Money
Market Fund on behalf of the participant.
The Plan allows members to transfer the sum of their interest, in
multiples of 25%, among funds once a month. Members may also
change the percent of their earnings contributed to the Plan once
a month. Additionally, members with an outstanding loan (for at
least a year) may request an additional loan. The additional
loan will have a separate payment schedule from the existing loan
and members cannot exceed two outstanding loans. The Plan allows
employees the option to deposit excess funds from The Quaker Flex
Plan to other funds within the Plan.
Participants in the Plan are allowed to defer receipt of, and
have placed in the Plan, up to seven percent of their earnings.
Contributions are not subject to Federal income tax until
distributed to the participant or his beneficiary. A participant
may receive a portion of his account in the event of a hardship.
"Hardship" means when funds are required for purchasing or making
capital expenditures for a primary residence, financing the post-
secondary education of the participant or his family or
alleviating existing financial hardship. Plan participants may
obtain loans from their account balances subject to the following
terms and restrictions which are effective for loan applications
received after September 15, 1989:
(a) A participant may borrow up to 50% of his account
balance including the highest loan balance in the
previous one-year period, but not more than $50,000 or
less than $1,000.
11
THE QUAKER OATS COMPANY
THE QUAKER INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 1995 AND 1994
NOTE 1 - THE QUAKER INVESTMENT PLAN (CONTINUED)
(b) The terms of such loans shall not exceed five
years and the rate of interest to be applied will be
the Northern Trust prime rate plus one percent.
(c) Repayments on the loan are to be made directly
through payroll deductions for active employees.
(d) Loans made to participants shall be secured by
the participants' non-forfeitable interests from one or
more of the funds in which a member's account is
invested prior to the making of such loans.
If a participant's employment with the Company is terminated, the
Plan will distribute his account balance to him or his
beneficiary. A participant under age 55 at the time of
termination of employment may elect to defer the lump-sum
distribution or the start of installment payments until age 65.
A participant age 55 or older may elect to defer the lump-sum
distribution or the start of installment payments until age 70 1/2.
If a participant terminates employment, attains age 65 in a Plan
year, and no distribution or deferral election is received by the
15th day after the end of the Plan year, an automatic lump-sum
distribution will be made. A participant may elect in writing
to receive the distribution in one of the following ways: (a) in
a lump sum; (b) in a partial distribution; or (c) in approximately
equal annual installments over a chosen period. The period
chosen, however, must be no longer than his life expectancy when
distributions begin as determined by the Internal Revenue Service ("IRS")
regulations. If the distribution is made through installment payments,
the participant's remaining account balance will continue to be
adjusted for investment gains or losses. If a participant's account
value is $3,500 or less, an automatic lump-sum distribution will be
made as soon as practical after the end of the Plan year in which
termination occurs.
A participant may elect in writing to receive all or a portion
of his account if he is at least age 59 1/2 years or if he is
totally and permanently disabled as determined by the Company
with the advice of a medical doctor. His account will then be
valued as of the latest available valuation date before
distribution. If only a portion of the account is distributed,
the remaining balance will continue to be adjusted for investment
gains and losses and other items.
The Plan also allows a participant to contribute to the Plan a
lump-sum distribution received from other qualified plans when
the contribution qualifies as a tax-free roll-over.
12
THE QUAKER OATS COMPANY
THE QUAKER INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 1995 AND 1994
NOTE 1 - THE QUAKER INVESTMENT PLAN (CONTINUED)
The Plan may be terminated at any time by the action of the Board
of Directors or Executive Committee of the Board. In the event
of termination of the Plan, the value of the accounts determined
as of the effective date of such termination shall be paid to the
participants, former participants or their beneficiaries.
The Northern Trust Company is the Plan Trustee, and Hewitt
Associates is the Plan administrator. The Company pays all
expenses incurred by the Plan.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The accompanying financial statements are prepared on the accrual
basis of accounting. Interest income is recorded as earned and
dividend income is recorded as of the record date.
Valuation of Investments
Investments are included in the accompanying Statements of Net
Assets Available for Benefits at fair market value. Fair market
value is based on published market prices.
Purchases and sales of securities, including related gains and
losses, are recognized on the transaction trade date. The change
from the preceding year between current value and the cost of
investments is reflected in the Statement of Changes in Net
Assets Available for Benefits as an unrealized gain or loss on
investments. The realized gain or loss is the difference between
the proceeds received and the average cost of investments.
Brokerage commissions increase the cost or decrease the sale
proceeds on the security transactions.
13
THE QUAKER OATS COMPANY
THE QUAKER INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 1995 AND 1994
NOTE 3 - TRUST INVESTMENTS
Participants in the Plan may invest in the Quaker Stock Fund
(common stock of the Company), the Diversified Fund (primarily
common and preferred stock of corporations other than the Company
and/or interest-bearing securities), the Bond Fund (primarily
corporate bonds with an average credit rating of "A" and with
maturities of up to 30 years), or the Money Market Fund
(primarily short-term fixed income securities). The Trustee is
authorized to keep such portion of any of the Investment Funds as
may seem advisable, from time to time, in cash or cash
equivalents and/or in short-term fixed income investments.
The value of each unit in an employee's account as of June 30,
1995 and 1994 for each of the four funds was as follows:
Unit Value
1995 1994
Quaker Stock Fund $ 22.97 $ 23.82
Diversified Fund $ 16.86 $ 13.12
Money Market Fund $ 6.65 $ 6.31
Bond Fund $ 2.20 $ 1.88
NOTE 4 - FEDERAL INCOME TAXES
The Plan obtained its latest determination letter on June 2,
1987, in which the IRS stated that the Plan, as then designed,
was in compliance with the applicable requirements of the Code.
The Plan has been amended since receiving the determination
letter. However, the Plan administrator and the Plan tax counsel
believe that the Plan is currently being operated in compliance
with the applicable requirements of the Code. Therefore, they
believe that the Plan was qualified and tax-exempt as of June 30,
1995. To comply with the Tax Reform Act of 1986, the Plan
administrator applied for a new tax determination letter on June
30, 1995.
14
THE QUAKER OATS COMPANY
THE QUAKER INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 1995 AND 1994
(dollars in thousands)
NOTE 5 - REALIZED GAIN ON INVESTMENTS IN SECURITIES
The realized gain on investments in securities for the years
ended June 30, 1995 and 1994, was as follows:
<TABLE>
<CAPTION>
1995 1994
Aggregate Aggregate
Cost of Cost of
Securities Realized Securities Realized
Sold/Distributed Gain Sold/Distributed Gain
<S> <C> <C> <C> <C>
Quaker Stock Fund $ 12,539 $ 10,324 $ 3,862 $ 3,939
Diversified Fund 150,954 8,193 141,329 6,762
Bond Fund 1,897 764 2,039 992
Fisher-Price Fund -- -- 2,683 7,335
$ 165,390 $ 19,281 $ 149,913 $ 19,028
</TABLE>
NOTE 6 - UNREALIZED GAIN (LOSS) ON INVESTMENTS IN SECURITIES
The unrealized gain (loss) on investments in securities for the
years ended June 30, 1995 and 1994, was as follows:
1995 1994
Unrealized gain, beginning of year $ 52,387 $ 68,919
Unrealized (loss) during the year (1,376) (16,532)
UNREALIZED GAIN, END OF YEAR $ 51,011 $ 52,387
NOTE 7 - FISHER-PRICE FUND TERMINATION
The transferred proceeds from the Fisher-Price Fund have been
recognized in the accounts of the Plan. The proceeds as
reflected in the Statement of Changes in Net Assets Available for
Benefits, when transferred, were $17,094.
NOTE 8 - QUAKER COMMON STOCK SPLIT-UP
In fiscal 1995, Quaker shareholders of record received an
additional share of common stock for each share held, pursuant to
a two-for-one stock split-up approved by the Board of Directors.
The number of Quaker common stock shares have been retroactively
restated.
15
THE QUAKER OATS COMPANY
THE QUAKER INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 1995 AND 1994
(dollars in thousands)
NOTE 9 - CURRENT VALUE GAIN (LOSS)
Based on the "Current Value" reporting requirements of the
Department of Labor and the IRS instructions for Form 5500, the
net realized gain is calculated as the difference between
proceeds received and the fair market value of investments on the
first day of the Plan year or the acquisition date if purchased
during the Plan year. The net unrealized gain or loss, is
calculated as the difference between the fair market value of
investments at the end of the Plan year and the fair market value
at the beginning of the Plan year. For the years ended June 30,
1995 and 1994, net realized gain and net unrealized gain (loss)
were as follows:
1995 1994
Net realized gain on investments 8,536 9,801
Net unrealized gain (loss) on investments 9,369 (7,305)
Net gain on investments 17,905 2,496
NOTE 10 - RECONCILIATION OF THE FORM 5500 TO THE FINANCIAL STATEMENTS
The following is a reconciliation of net assets available for
benefits per the Form 5500 to the financial statements as of June 30:
1995 1994
Net assets available for benefits per
the Form 5500 $ 263,355 $ 253,575
Add: Distributions payable to participants 7,709 2,402
NET ASSETS AVAILABLE FOR BENEFITS PER
THE FINANCIAL STATEMENTS $ 271,064 $ 255,977
The following is a reconciliation of benefits paid to
participants per the Form 5500 to the financial statements:
1995 1994
Distributions to participants per the Form 5500 $ 29,550 $ 12,666
Add: Distributions payable, beginning of year 2,402 1,863
Less: Distributions payable, end of year 7,709 2,402
DISTRIBUTIONS TO PARTICIPANTS PER THE
FINANCIAL STATEMENTS $ 24,243 $ 12,127
16
THE QUAKER OATS COMPANY
THE QUAKER INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
AS OF JUNE 30, 1995 AND 1994
(dollars in thousands)
NOTE 11 - RESTATEMENT OF PRIOR FINANCIAL STATEMENTS
The June 30, 1994 financial statements have been restated in
order to conform with the 1995 format and classifications, and
are presented for comparison purposes. In the past, unpaid
distributions at year end were reported as a liability on the
Statements of Net Assets Available for Benefits. This amount was
also reported as a component of distributions to participants on
the Statements of Changes in Net Assets Available for Benefits.
The liability for unpaid distributions is now disclosed in the
notes to the 1995 financial statements (see Note 10).
The effect of the restatement was to increase the 1994 beginning
net assets available for plan benefits by $1,863 and to decrease
the distributions to participants by $539 in 1994. Net assets
available for plan benefits at June 30, 1994 increased by $2,402
after adjustment of the 1994 beginning net assets available for
benefits for the effects of restatement on prior years.
17
THE QUAKER OATS COMPANY
THE QUAKER INVESTMENT PLAN
FORM 5500 ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF JUNE 30, 1995
(dollars in thousands)
Schedule I
Page 1 of 2
Number of Market
Description Shares Cost Value
Company Stock
The Quaker Oats Company Common Stock 2,786,859 $ 58,737 $ 90,918
Marketable Securities
Common Stocks -
Automotive (Transportation) -
Ford Motor Company 84,200 2,246 2,505
General Motors Corp. 51,600 1,716 2,038
Mobil Corp. 23,950 2,216 2,299
Chemical -
Dow Chemical Company 35,100 2,295 2,523
DuPont, E.I. DeNemours & Company 37,250 2,097 2,561
Communications -
AT&T (American Telephone and Telegraph
Corp.) 52,600 2,621 2,788
Conglomerate -
ITT Corp. 23,800 2,140 2,797
Philip Morris Company Inc. 37,800 2,431 2,811
Drugs -
Lilly, Eli & Company 24,950 1,805 1,959
Electronics (Instrumentation) -
Compaq Computer Corp. 40,100 1,394 1,815
International Business Machines Corp. 31,100 2,933 2,986
Financial Institutions -
Bank America Corp. 56,800 2,716 2,989
Citicorp 50,700 1,601 2,934
General Merchandising -
Federated Department Stores Inc. 88,400 1,831 2,276
Sears, Roebuck & Company 55,250 2,689 3,287
Leisure -
Mattel Inc. 32,237 554 846
Motorola Inc. 40,450 2,384 2,715
RJR Nabisco Holdings Corp. 93,620 2,962 2,598
18
THE QUAKER OATS COMPANY
THE QUAKER INVESTMENT PLAN
FORM 5500 ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF JUNE 30, 1995
(dollars in thousands)
Schedule I
Page 2 of 2
Number of Market
Description Shares Cost Value
Common Stocks (continued)
Miscellaneous -
American Home Products Corp. 30,800 2,077 2,383
ADR Astra AB Sponsored 59,000 1,551 1,819
ADR News Corp. LTD 2,900 58 58
ADR Nokia Corp. Sponsored 29,400 885 1,760
ADR Philips Electronics N.V. 88,400 2,374 3,779
Burlington Northern Inc. 47,900 2,745 3,036
Canadian Pacific LTD 151,700 2,409 2,636
Deere and Company 23,150 1,728 1,982
Mallinckrodt Group Inc. 33,700 1,070 1,196
McDermott International Inc. 46,400 1,177 1,119
McDonnell Douglas Corp. 25,650 880 1,969
Pepsico Inc. 52,400 2,012 2,384
Tenet Healthcare Corp. 69,100 1,134 993
Time Warner Inc. 44,000 1,461 1,815
Travelers Group Inc. 53,500 2,147 2,341
Unocal Corp. 60,000 1,631 1,658
Viacom Inc. 14,800 644 687
WMX Tech. Inc. 100,800 2,724 2,860
Wal-Mart Stores Inc. 79,100 1,732 2,116
Weyerhaeuser Company 50,100 1,995 2,361
Preferred Stocks -
ADR News Corp. LTD 142,100 2,488 2,842
Times Mirror Company New Series B 91,058 1,943 2,174
Corporate Bonds -
Quaker Master Trust - Wells Fargo Bonds 659,889 8,986 14,598
Total Marketable Securities 84,482 103,293
Short-Term Investments
DuPont E.I. DeNemours & Company Commercial
Paper Note, $3,200 due 07-21-1995 3,200 3,170 3,189
Collective Trust Short-Term Investments 64,609 64,609
TOTAL INVESTMENTS $210,998 $262,009
19
THE QUAKER OATS COMPANY
THE QUAKER INVESTMENT PLAN
FORM 5500 ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED JUNE 30, 1995
(dollars in thousands)
Schedule II
Purchase Value
and Transaction Cost of of Net
Sale Price Fees Asset Asset Gain
Description
Quaker Stock Fund -
The Quaker Oats Company
common stock
468,908 shares purchased
in 24 transactions $33.049 $13 $15,510 $15,510 --
527,790 shares sold
in 19 transactions $36.660 $20 $10,563 $19,369 $8,786
20
Exhibit (b)
WASHINGTON, PITTMAN & MCKEEVER
Certified Public Accountants
819 South Wabash Avenue
Suite 600
Chicago, Illinois 60605
(312) 786-0330
FAX (312) 786-0323
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the use
of our report (and references to our Firm) included in or made a
part of this Form 11-K. It should be noted that we have not
audited any financial statements of The Quaker Investment Plan
subsequent to June 30, 1995 or performed any audit procedures to
the date of our report.
WASHINGTON, PITTMAN & McKEEVER
Chicago, Illinois
December 8, 1995
21
