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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, 1995
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 GLOBAL OPERATIONS 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 GLOBAL INC.
2100 Sanders Road, Northbrook, Illinois 60062
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CONTENTS
Report of independent auditors
Financial statements
Statements of assets available for benefits, with fund information
Statements of changes in assets available for benefits, with fund
information
Notes to financial statements
Supplemental schedules Schedule
Schedule of assets held for investment purposes 1
Schedule of reportable transactions 2
REPORT OF INDEPENDENT AUDITORS
Plan Administrator
Salary Reduction Plan for Hourly Employees of
IMC Global Operations Inc. Represented by
United Steelworkers of America at Carlsbad, New Mexico
We have audited the accompanying statements of assets available for
benefits of the Salary Reduction Plan for Hourly Employees of IMC
Global Operations Inc. Represented by United Steelworkers of America at
Carlsbad, New Mexico as of June 30, 1995 and 1994, and the related
statements of changes in 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
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 benefits of
the Plan at June 30, 1995 and 1994, and the changes in its assets
available for benefits for the years then ended, in conformity with
generally accepted accounting principles.
Our audits were performed 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
June 30, 1995, and reportable transactions for the year then ended, 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 Fund Information in the statement
of assets available for benefits and the statement of changes in assets
available for benefits is presented for purposes of additional analysis
rather than to present the assets available for benefits and changes in
assets available for benefits of each fund. The supplemental schedules
and Fund Information have been subjected to the auditing procedures
applied in our 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.
ERNST & YOUNG LLP
November 17, 1995
SALARY REDUCTION PLAN FOR HOURLY EMPLOYEES OF
IMC GLOBAL OPERATIONS INC.
REPRESENTED BY UNITED STEELWORKERS OF AMERICA AT
CARLSBAD, NEW MEXICO
STATEMENTS OF ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
June 30, 1995
Fund Information
Fixed Bond
Income Balanced Equity Index
Total Fund Fund Fund Fund
Investments, at fair value:
Mutual funds -
Vanguard Wellington
Fund, Inc. $ 36,330 $36,330
Fidelity Equity-Income
Fund, Inc. 72,037 $72,037
LaSalle National Trust,
N.A. Income Plus Fund 78,294 $78,294
The Northern Trust Company
Collective Treasury
Bond
Index Fund 1,346,764 $1,346,764
The Northern Trust Company
Collective Short Term
Investment Fund 35,544 35,544
Loans to participants 65,132 9,605 55,527
--------- ------ ------ ------ ---------
Total investments 1,634,101 78,294 36,330 81,642 1,437,835
Cash 4,630 1,664 878 1,836 252
Accrued interest and
dividends 536 393 143
--------- ------ ------ ------ ---------
Assets available for
benefits $1,639,267 $80,351 $37,208 $83,478 $1,438,230
========= ====== ====== ====== =========
(See Notes to Financial Statements)
SALARY REDUCTION PLAN FOR HOURLY EMPLOYEES OF
IMC GLOBAL OPERATIONS INC.
REPRESENTED BY UNITED STEELWORKERS OF AMERICA AT
CARLSBAD, NEW MEXICO
STATEMENT OF ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
June 30, 1994
Bond Index
Fund
Investments, at fair value:
The Northern Trust Company
Collective Treasury Bond Index Fund $1,341,212
The Northern Trust Company
Collective Short Term Investment
Fund 17,775
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Total investments 1,358,987
Receivables:
Contributions receivable 7,775
Accrued interest 27
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Total receivables 7,802
Cash 18
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Assets available for benefits $1,366,807
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(See Notes to Financial Statements)
SALARY REDUCTION PLAN FOR HOURLY EMPLOYEES OF
IMC GLOBAL OPERATIONS INC.
REPRESENTED BY UNITED STEELWORKERS OF AMERICA AT
CARLSBAD, NEW MEXICO
STATEMENT OF CHANGES IN ASSETS AVAILABLE FOR BENEFITS, WITH FUND
INFORMATION
For the Year Ended June 30, 1995
Fund Information
Fixed Bond
Income Balanced Equity Index
Total Fund Fund Fund Fund
Investment income:
Interest and
dividends $ 106,588 $ 1,154 $ 424 $ 717 $ 104,293
Net appreciation in
fair value of
investments 58,783 2,301 4,242 52,240
Loans to participants
- interest 1,683 189 1,494
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Total investment
income 167,054 1,154 2,725 5,148 158,027
Participant contri-
butions 251,010 21,891 11,580 21,160 196,379
Cash distributed to
withdrawing partici-
pants (145,604) (145,604)
Transfers of invest-
ment direction 57,306 22,903 57,170 (137,379)
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Net increase in assets
available for benefits 272,460 80,351 37,208 83,478 71,423
Assets available for
benefits- beginning
of year 1,366,807 1,366,807
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Assets available for
benefits- end of
year $1,639,267 $80,351 $37,208 $83,478
$1,438,230
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(See Notes to Financial Statements)
SALARY REDUCTION PLAN FOR HOURLY EMPLOYEES OF
IMC GLOBAL OPERATIONS INC.
REPRESENTED BY UNITED STEELWORKERS OF AMERICA AT
CARLSBAD, NEW MEXICO
STATEMENT OF CHANGES IN ASSETS AVAILABLE FOR BENEFITS, WITH FUND
INFORMATION
For the Year Ended June 30, 1994
Bond Index
Fund
Investment income (loss):
Interest $ 93,377
Net depreciation in fair value
of investments (110,926)
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Total investment (loss) income (17,549)
Participant contributions 241,800
Cash distributed to withdrawing
participants (149,419)
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Net increase in assets available
for benefits 74,832
Assets available for benefits-
beginning of year 1,291,975
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Assets available for benefits-
end of year $1,366,807
==========
(See Notes to Financial Statements)
SALARY REDUCTION PLAN FOR HOURLY EMPLOYEES OF
IMC GLOBAL OPERATIONS INC.
REPRESENTED BY UNITED STEELWORKERS OF AMERICA AT
CARLSBAD, NEW MEXICO
NOTES TO FINANCIAL STATEMENTS
1. Description of the Plan
The following description of the Salary Reduction Plan for Hourly
Employees of IMC Global Operations Inc. Represented by United
Steelworkers of America at Carlsbad, New Mexico (the Plan) provides
only general information. Participants should refer to the Plan
document for a more complete description of the Plan's provisions.
General
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) represented by
the United Steelworkers of America are eligible to participate in the
Plan on the July 1 or January 1 following their date of hire. 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.
Contributions
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 IRC). A participant may change the amount
of payroll deduction on each July 1 or January 1. The Plan provides a
qualified cash and deferred arrangement within the meaning of Section
401(k) of the IRC; such contributions were subject to the calendar year
maximum of $9,240 in 1995 and 1994.
Participant Accounts
Separate accounts are maintained for each participant. Each
participant's account balance is adjusted for contributions,
withdrawals, if any, interest, dividends and net realized and
unrealized gains or losses on the last day of each month.
Administrative Expenses
Certain administrative expenses of the Plan are borne by the
Company.
Investment Programs
The Plan investments are administered by The Northern Trust Company
as successor trustee to the Western Commerce Bank under a trust
agreement dated September 30, 1983. Investment programs available to
participants are as follows:
Fixed Income Fund - Investments of the Fixed Income Fund are
managed by LaSalle Street Capital Management, Ltd. Investments are
made in shares of the LaSalle National Trust, N.A. Income Plus
Fund, a pooled fund which primarily invests in investment
contracts, U.S. Government money market investments and alternative
contracts backed by the U.S. Government, U.S. Government Agency and
other AAA rated fixed income instruments.
Balanced Fund - Investments are made in shares of the Vanguard
Wellington Fund, Inc., a mutual fund which invests in a diversified
portfolio of 60-70 percent common stocks and 30-40 percent bonds.
Equity Fund - Investments are made in shares of the Fidelity
Equity-Income Fund, Inc., a mutual fund which invests at least 65
percent of its assets in income producing equity securities. The
balance of the portfolio is invested in all types of domestic and
foreign instruments, including bonds.
Bond Index Fund - Investments are made in shares of The Northern
Trust Company Collective Treasury Bond Index Fund, a pooled fund
which invests primarily in a portfolio of securities issued as
direct obligations of the U.S. Treasury.
Participants elect their desired investment program upon joining
the Plan. As of July 1, October 1, January 1 and April 1 of any Plan
year, upon giving prescribed notice, participants may elect to transfer
their existing account balances in any fund or funds at that date to
any other fund, or in 25 percent increments to any combination of
funds. Participants may elect to change the investment direction of
their future contributions four times a year (July 1, October 1,
January 1 and April 1). Such a change only affects the investment of
the participants' contributions and employer contributions received by
the Plan after the effective date of the change. The Fixed Income
Fund, the Balanced Fund and the Equity Fund investment programs were
introduced to the Plan effective January 1, 1995.
Vesting
All Plan participants are immediately and nonforfeitably vested in
their Plan accounts.
Withdrawals
Participants may withdraw their interest in the Plan upon
termination of employment. Under certain conditions of financial
hardship, participants may withdraw funds, subject to prior approval of
the Employee Benefits 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
Participants who terminate employment and have an account balance
in excess of $3,500 may elect (at any time prior to age 65) to defer
receipt of distribution until no later than their 70th birthday.
Loans to Participants
Participants in the Plan may be granted loans subject to certain
terms and maximum dollar or Plan account balance limits, as defined by
the Plan. The amount of any such loan is borrowed from the account of
the participant to whom the loan was made and such account does not
share in the allocation of income, gains and losses of the investment
funds to the extent of the outstanding balance of such loan. Principal
repayments, which are over one to five years for general purpose loans
and over one to ten years for residential loans, and related interest
income are credited to the borrowing participant's account. Loan
payments are made by weekly payroll deductions. Each loan bears
interest at the prevailing rate for loans of similar risk, date of
maturity and date of grant.
2. Summary of Significant Accounting Policies
Investment Valuation
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 mutual funds,
the LaSalle National Trust, N.A. Income Plus Fund, 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 determined by the respective funds.
Loans to participants are valued at cost which approximates fair value.
Income Recognition
Purchases and sales of securities are accounted for on the trade
date (date the order to buy or sell is executed). Dividend income is
recorded on the ex-dividend date. Interest from investments is
recorded as earned on an accrual basis.
Contributions
Participant contributions are recorded each pay period as withheld
by the Company.
Participant Withdrawals
Withdrawals are recorded when payments are made to participants.
Withdrawals requested but not paid are presented in Department of Labor
Form 5500 (Annual Return/Report of Employee Benefit Plan) as
liabilities. There were no unpaid withdrawals at June 30, 1995 and
1994.
3. Net Appreciation (Depreciation) in Fair Value of Investments
During 1995 and 1994, net appreciation (depreciation) in fair value
of the Plan's investments as determined by quoted market price was as
follows:
1995 1994
Mutual funds -
Balanced Fund $ 2,301
Equity Fund 4,242
Bond Index Fund 52,240 $(110,114)
U.S. Government and
government sponsored
enterprise obligations (812)
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$ 58,783 $(110,926)
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4. Significant Investments
Investments that represent 5 percent or more of assets available
for benefits at June 30 were as follows:
1995 1994
Fidelity Equity-Income
Fund, Inc. $ 72,037
LaSalle National Trust,
N.A. Income Plus Fund 78,294
The Northern Trust Company
Collective Treasury Bond
Index Fund 1,346,764 $1,341,212
5. Federal Income Tax Status
The Internal Revenue Service ruled on September 11, 1995 that the
Plan qualified under Section 401(a) of the IRC and, therefore, the
related trust is not subject to tax under present income tax law. Once
qualified, the Plan is required to operate in conformity with the IRC
to maintain its qualification. The Plan Administrator is not aware of
any course of action or series of events that have occurred that might
adversely affect the Plan's qualified status.
SUPPLEMENTAL SCHEDULES
Schedule 1
SALARY REDUCTION PLAN FOR HOURLY EMPLOYEES OF
IMC GLOBAL OPERATIONS INC.
REPRESENTED BY UNITED STEELWORKERS OF AMERICA AT
CARLSBAD, NEW MEXICO
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
June 30, 1995
Principal amount
or number of Current
Description shares or units Cost value
Mutual funds -
Vanguard Wellington
Fund, Inc. 1,621 shares $ 34,029 $ 36,330
Fidelity Equity-
Income Fund, Inc. 2,077 shares 68,018 72,037
LaSalle National Trust,
N.A. Income Plus Fund 78,294 shares 78,294 78,294
The Northern Trust Company
Collective Treasury Bond
Index Fund (A) 6,497 shares 1,387,215 1,346,764
The Northern Trust Company
Collective Short Term
Investment Fund (A) 35,544 units 35,544 35,544
Loans to participants
(9.5% - 10%) $65,132 65,132 65,132
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Total investments $1,668,232 $1,634,101
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NOTE:
(A) Party-in-interest transactions not prohibited by ERISA.
Schedule 2
SALARY REDUCTION PLAN FOR HOURLY EMPLOYEES OF
IMC GLOBAL OPERATIONS INC.
REPRESENTED BY UNITED STEELWORKERS OF AMERICA AT
CARLSBAD, NEW MEXICO
SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED JUNE 30, 1995
Purchases Sales
Description Number Cost Number Cost Proceeds Gain(loss)
Category (i) transaction -
individual transactions
in excess of 5 percent of
plan assets:
The Northern Trust Company
Collective Treasury Bond
Index Fund (A) 1 $160,473 $150,158 $(10,315)
Category (iii) transactions -
series of transactions
in excess of 5 percent of
plan assets:
Fidelity Equity -
Income Fund, Inc. 16 $75,797 1 7,779 7,946 167
LaSalle National Trust,
N.A. Income Plus Fund 18 78,327 3 33 33 (B)
The Northern Trust Company
Collective Short Term
Investment Fund (A) 31 132,364 11 114,595 114,595 (B)
NOTES:
(A) Party-in-interest transactions not prohibited by ERISA.
(B) Due to the nature of these transactions, there is no gain or loss
on disposition.
(C) There were no category (ii) or (iv) reportable transactions during
the year ended June 30, 1995.
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 Global Operations 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 11, 1995
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 11, 1995
Chief Financial Officer
C. STEVEN HOFFMAN
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C. Steven Hoffman Senior Vice President, December 11, 1995
Marketing
ALLEN C. MILLER
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Allen C. Miller Senior Vice President, December 11, 1995
Human Resources
MARSCHALL I. SMITH
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Marschall I. Smith Senior Vice President, December 11, 1995
Secretary and General Counsel
JAMES D. SPEIR
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James D. Speir President and December 11, 1995
Chief Operating Officer
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 Global Operations Inc., Represented by
United Steelworkers of America at Carlsbad, New Mexico, and in the
related Prospectus of our report dated November 27, 1995, with respect
to the financial statements and supplemental schedules of the Salary
Reduction Plan for Hourly Employees of IMC Global Operations 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,
1995.
ERNST & YOUNG LLP
Chicago, Illinois
December 11, 1995
Docket No. 112997
