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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 11-K
(Mark One)
X ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
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SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the fiscal year ended June 30, 1994
OR
--- TRANSITION REPORT PURSUANT TO SECTION 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from ---------- to ----------
Commission file number 1-9759
A. Full title of the plan and the address of the plan, if
different from that of the issuer named below:
SALARY REDUCTION PLAN FOR HOURLY EMPLOYEES OF
IMC FERTILIZER, INC.
REPRESENTED BY UNITED STEELWORKERS OF AMERICA AT CARLSBAD, NEW MEXICO
B. Name of issuer of the securities held pursuant to the
plan and the address of its principal executive office:
IMC FERTILIZER GROUP, INC.
2100 Sanders Road, Northbrook, Illinois 60062
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CONTENTS
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Report of independent auditors
Financial statements
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Statements of assets available for plan benefits
Statements of changes in assets available for plan benefits
Notes to financial statements
Supplemental schedules Schedule
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Investments 1
Reportable transactions 2
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REPORT OF INDEPENDENT AUDITORS
Plan Administrator
Salary Reduction Plan for Hourly Employees of
IMC Fertilizer, Inc. Represented by
United Steelworkers of America at Carlsbad, New Mexico
We have audited the accompanying statements of assets available for
plan benefits of the Salary Reduction Plan for Hourly Employees of IMC
Fertilizer, Inc. Represented by United Steelworkers of America at
Carlsbad, New Mexico (Plan) as of June 30, 1994 and 1993, and the
related statements of changes in assets available for plan benefits for
the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the assets available for plan
benefits of the Plan as of June 30, 1994 and 1993, and the changes in
its assets available for plan 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 accompanying supplemental
schedules of investments and reportable transactions as of or for the
year ended June 30, 1994, respectively, 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 1994 basic financial
statements and, in our opinion, are fairly stated in all material
respects in relation to the 1994 basic financial statements taken as a
whole.
ERNST & YOUNG LLP
December 12, 1994
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SALARY REDUCTION PLAN FOR HOURLY EMPLOYEES OF
IMC FERTILIZER, INC.
REPRESENTED BY UNITED STEELWORKERS OF AMERICA AT
CARLSBAD, NEW MEXICO
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STATEMENTS OF ASSETS AVAILABLE FOR PLAN BENEFITS
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June 30, 1994 and 1993
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1994 1993
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Investments:
U.S. government and
government sponsored
enterprise obligations
(cost - $200,813) $ 202,000
The Northern Trust Company
Collective Treasury Bond
Index Fund (7,260 shares;
cost - $1,444,217) $1,341,212 1,035,587
The Northern Trust Company Collective
Short Term Investment Fund (17,775
units; cost - $17,775) 17,775 40,526
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Total investments 1,358,987 1,278,113
Receivables:
Contributions receivable 7,775 10,745
Accrued interest 27 3,117
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Total receivables 7,802 13,862
Cash 18
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Assets available for plan benefits $1,366,807 $1,291,975
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STATEMENTS OF CHANGES IN ASSETS AVAILABLE FOR PLAN BENEFITS
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For the Years Ended June 30, 1994 and 1993
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1994 1993
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Investment income (loss):
Interest $ 93,377 $ 68,628
Net (depreciation) appreciation in fair
value of investments (110,926) 12,020
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Total investment (loss) income (17,549) 80,648
Participant contributions 241,800 179,025
Cash distributed to withdrawing
participants (149,419) (100,010)
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Net increase in assets available
for plan benefits 74,832 159,663
Assets available for plan benefits -
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beginning of year 1,291,975 1,132,312
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Assets available for plan benefits -
end of year $1,366,807 $1,291,975
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(See Notes to Financial Statements)
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SALARY REDUCTION PLAN FOR HOURLY EMPLOYEES OF
IMC FERTILIZER, INC.
REPRESENTED BY UNITED STEELWORKERS OF AMERICA AT
CARLSBAD, NEW MEXICO
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NOTES TO FINANCIAL STATEMENTS
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1. Description of the Plan
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General
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The Salary Reduction Plan for Hourly Employees of IMC Fertilizer,
Inc. Represented by United Steelworkers of America at Carlsbad, New
Mexico (the Plan) was established on July 1, 1983 and was most recently
restated on June 30, 1991. Hourly employees at Carlsbad, New Mexico
operations of IMC Global Operations Inc. (the Company), formerly IMC
Fertilizer, Inc., represented by the United Steelworkers of America
(the Union) are eligible to participate in the Plan.
Separate accounts are maintained for each participant. Plan units
are valued on the last day of each month; each participant's account
balance is adjusted for contributions, withdrawals, if any, interest
and gain or loss.
The Plan is funded by contributions, known as salary reduction
contributions, from participants in the form of payroll deductions of
$5 to $250 each pay period, but not to exceed 25 percent of the
participant's compensation within the meaning of Section 415 of the
Internal Revenue Code (the Code). A participant may change the amount
of payroll deduction on each July 1. The Plan provides a qualified
cash and deferred arrangement within the meaning of Section 401(k) of
the Code; such contributions were subject to the calendar year maximum
of $9,240 in 1994 ($8,994 in 1993). While the Company has not
expressed any intent to terminate the Plan, it is free to do so at any
time.
The Plan is maintained pursuant to a collective bargaining
agreement between the Company and the Union.
Certain administrative expenses of the Plan are borne by the
Company.
Investments
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The Plan investments at June 30, 1994 were administered by The
Northern Trust Company as successor trustee to the Western Commerce
Bank under a trust agreement dated September 30, 1983. The assets were
transferred from the Western Commerce Bank as of December 31, 1992.
The trustee is permitted to invest contributions only in securities
issued or fully guaranteed as to payment of principal and interest by
the United States government or an agency thereof, or funds investing
in such securities, including interest bearing accounts insured by the
Federal Deposit Insurance Corporation. The Plan may purchase stock of
the Company with certain limits and restrictions.
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Vesting and Participation
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All Plan participants are immediately and nonforfeitably vested in
their Plan accounts. Employees become eligible to join the Plan as a
vested participant on the July 1 following the date they become an
employee at the Company plant in Carlsbad, New Mexico, on an hourly
basis and fall within the jurisdiction of the Union.
Withdrawals
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A participant may withdraw his or her interest in the Plan upon
termination of employment. Under certain conditions of financial
hardship, participants may withdraw funds, subject to prior approval of
the committee, but their participation in the Plan will be suspended
for at least one year. Full withdrawals are available after age 59 1/2
or in the event of total and permanent disability.
Deferred Distributions
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A participant having a plan account valued in excess of $3,500 who
terminates employment may defer receipt of his entire plan account
until no later than his 70th birthday.
2. Summary of Significant Accounting Policies
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Investment Valuation
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All investments are carried at fair value. Fair value is the last
reported sale price on the last business day of the month for
securities traded on a national securities exchange and in the
over-the-counter market. Fair value for shares of The Northern Trust
Company Collective Treasury Bond Index Fund and units of The Northern
Trust Company Collective Short Term Investment Fund is the net asset
value of those shares or units, as computed by the respective funds.
Income Recognition
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Purchases and sales of securities are accounted for on the trade
date (date the order to buy or sell is executed). Interest is recorded
as earned on an accrual basis.
Contributions
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Participant contributions are recorded each pay period as withheld
by the Company.
Employee Withdrawals
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Withdrawals are recorded when payments are made to participants.
There were no unpaid withdrawals at June 30, 1994 and 1993.
Reclassifications
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Certain 1993 amounts have been reclassified in the financial
statements to conform to the 1994 presentation.
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3. Net Appreciation (Depreciation) in Fair Value of Investments
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Net appreciation (depreciation) in fair value of the Plan's
investments as determined by quoted market price for the year ended
June 30 was as follows:
1994 1993
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U.S. government and government
sponsored enterprise obligations (812) $ 1,187
Mutual funds $(110,114) 10,833
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$(110,926) $ 12,020
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4. Significant Investments
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Investments that represent 5 percent or more of assets available
for plan benefits at June 30 were as follows:
1994 1993
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U.S. government and government
sponsored enterprise obligations -
U.S. Treasury note, 6.375%,
due August 31, 1993 $ 100,516
U.S. Treasury note, 5.375%,
due April 30, 1994 101,484
The Northern Trust Company Collective
Treasury Bond Index Fund $1,341,212 1,035,587
5. Federal Income Tax Status
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The Company has received a favorable determination letter from the
Internal Revenue Service stating that the Plan qualifies under Sections
401(a) and 401(k) of the Code and that the Trust is exempt from
taxation under Section 501(a) of the Code. The Plan is required to
operate in conformity with the Code in order to maintain its qualified
status. The Plan Administrator is not aware of any course of events or
series of transactions that would affect the qualified status of the
Plan.
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SUPPLEMENTAL SCHEDULES
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Schedule 1
SALARY REDUCTION PLAN FOR HOURLY EMPLOYEES OF
IMC FERTILIZER, INC.
REPRESENTED BY UNITED STEELWORKERS OF AMERICA AT
CARLSBAD, NEW MEXICO
INVESTMENTS
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June 30, 1994
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Number of shares Fair market
Description or units Cost value
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The Northern Trust Company
Collective Treasury Bond
Index Fund (1) 7,260 shares $1,444,217 $1,341,212
The Northern Trust Company
Collective Short Term
Investment Fund (1) 17,775 units 17,775 17,775
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Total investments $1,461,992 $1,358,987
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NOTE:
(1) Party-in-interest transactions not prohibited by ERISA.
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Schedule 2
SALARY REDUCTION PLAN FOR HOURLY EMPLOYEES OF
IMC FERTILIZER, INC.
REPRESENTED BY UNITED STEELWORKERS OF AMERICA AT
CARLSBAD, NEW MEXICO
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REPORTABLE TRANSACTIONS
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YEAR ENDED JUNE 30, 1994
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Purchases Sales
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Gain
Description Number Cost Number Proceeds (loss)
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U.S. Treasury SER 6.375%,
due 8-31-93 1 $100,000 $(563)
U.S. Treasury SER 5.375%,
due 4-30-94 1 100,000 (250)
The Northern Trust Company
Collective Treasury Bond
Index Fund (2) 38 $417,936 1 2,223 (147)
The Northern Trust Company
Collective Short Term
Investment Fund (1) (2) 26 444,164 26 421,413
NOTES:
(1) Party-in-interest transactions not prohibited by ERISA.
(2) Due to the nature of these transactions, there is no gain or loss
on disposition.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
I, the undersigned Chairman of the Employee Benefits Committee, have
duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
Salary Reduction Plan for Hourly Employees of
IMC Fertilizer, Inc. Represented by
United Steelworkers of America at Carlsbad, New Mexico
ROBERT C. BRAUNEKER
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Robert C. Brauneker
Chairman of the Employee Benefits Committee
Date: December 22, 1994
Pursuant to the requirements of the Securities Exchange Act of 1934,
this annual report has been signed below by the following persons in
their capacities as members of the Employee Benefits Committee and on
the dates indicated.
Signature Title Date
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ROBERT C. BRAUNEKER
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Robert C. Brauneker Executive Vice President December 22, 1994
Chief Financial Officer
JOHN E. GALVIN
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John E. Galvin Vice President and Treasurer December 22, 1994
C. STEVEN HOFFMAN
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C. Steven Hoffman Senior Vice President, December 22, 1994
Marketing
ALLEN C. MILLER
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Allen C. Miller Senior Vice President, December 22, 1994
Human Resources
MARSCHALL I. SMITH
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Marschall I. Smith Senior Vice President, December 22, 1994
Secretary and General Counsel
JAMES D. SPEIR
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James D. Speir President and December 22, 1994
Chief Operating Officer
<PAGE>
Exhibit 23
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration
Statement (Form S-8 No. 33-42074) pertaining to the Salary Reduction
Plan for Hourly Employees of IMC Fertilizer, Inc., Represented by
United Steelworkers of America at Carlsbad, New Mexico, and in the
related Prospectus of our report dated December 12, 1994 with respect
to the financial statements of the Salary Reduction Plan for Hourly
Employees of IMC Fertilizer, Inc., Represented by United Steelworkers
of America at Carlsbad, New Mexico, included in this Annual Report
(Form 11-K) for the year ended June 30, 1994.
ERNST & YOUNG LLP
Chicago, Illinois
December 22, 1994
Docket No. 069451
