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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, 1996
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
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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
- ---------------------- --------
Item 27a - Schedule of assets held for investment purposes 1
Item 27d - 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, 1996 and 1995, 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, 1996 and 1995, 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, 1996, 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
October 23, 1996
SALARY REDUCTION PLAN FOR HOURLY EMPLOYEES OF
IMC GLOBAL OPERATIONS INC.
REPRESENTED BY UNITED STEELWORKERS OF AMERICA AT
CARLSBAD, NEW MEXICO
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STATEMENT OF ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
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June 30, 1996
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Fund Information
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Fixed Bond
Income Balanced Equity Index Loan
Total Fund Fund Fund Fund Fund
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Investments, at
fair value:
Mutual funds -
Vanguard
Wellington
Fund,Inc. $ 169,632 $169,632
Fidelity
Equity-
Income Fund,
Inc. 233,679 $233,679
Vanguard Fixed
Income Fund 1,191,860 $1,191,860
Master trust fund-
IMC Global Fixed
Fund 183,925 $183,925
Loans to
participants 105,082 $105,082
---------- -------- -------- -------- ---------- --------
Total
investments 1,884,178 183,925 169,632 233,679 1,191,860 105,082
Employee contribu-
tions receivable 11,538 1,754 1,882 3,258 4,644
Accrued interest and
dividends 6,476 6,476
---------- -------- -------- -------- ---------- --------
Assets available
for benefits $1,902,192 $185,679 $171,514 $236,937 $1,202,980 $105,082
========== ======== ======== ======== ========== ========
(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
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STATEMENTS OF ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
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June 30, 1995
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Fund Information
-----------------------------------
Fixed Bond
Income Balanced Equity Index
Total Fund Fund Fund Fund
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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
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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 CHANGES IN ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
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For the Year Ended June 30, 1996
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Fund Information
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Fixed Bond
Income Balanced Equity Index Loan
Total Fund Fund Fund Fund Fund
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Investment income:
Interest and
dividends $ 94,429 $ 2,567 $ 2,317 $ 3,576 $ 83,879
Net apprecia-
tion in fair
value of
investments
(depreciation) 4,529 4,864 8,123 22,108 (30,566)
Income from
master trust
fund 3,566 3,566
Loans to
participants -
interest 6,914 5 423 2,495 $ 3,991
---------- -------- -------- -------- ---------- --------
Total investment
income 107,438 11,092 10,440 26,107 55,808 3,991
Participant
contributions 272,495 43,691 41,345 68,099 119,360
Transfers from
other plans 2,503 2,503
Cash distributed
to withdrawing
participants or
other plans (119,511) (1,513) (7,629) (16,012) (85,731) (8,626)
Transfers of
investment
direction 52,058 90,150 75,265 (327,190) 109,717
---------- -------- -------- -------- ---------- --------
Net increase
(decrease) in
assets available
for benefits 262,925 105,328 134,306 153,459 (235,250) 105,082
Assets available
for benefits-
beginning of year 1,639,267 80,351 37,208 83,478 1,438,230
---------- -------- -------- -------- ---------- --------
Assets available
for benefits-
end of year $1,902,192 $185,679 $171,514 $236,937 $1,202,980 $105,082
========== ======== ======== ======== ========== ========
(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
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For the Year Ended June 30, 1995
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Fund Information
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Fixed Bond
Income Balanced Equity Index
Total Fund Fund Fund Fund
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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 contributions 251,010 21,891 11,580 21,160 196,379
Cash distributed to
withdrawing participants (145,604) (145,604)
Transfers of investment
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
---------- ------- ------- ------- ----------
Assets available for
benefits- end of year $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
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NOTES TO FINANCIAL STATEMENTS
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1. Description of the Plan
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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
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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
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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 $9,500 in 1996 ($9,240 in 1995)
Participant Accounts
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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
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Certain administrative expenses of the Plan are borne by the
Company.
Investment Programs
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Since January 1, 1996 the Plan investments are administered by Marshall
& Ilsley Trust Company under a trust agreement dated January 1, 1996.
Prior to that time, the trustee was The Northern Trust Company.
Investment programs available to participants are as follows:
Fixed Income Fund - Since January 1, 1996, investments of the
Fixed Income Fund have been invested in a pooled income fund
shared only by other IMC Global Operations Inc. 401(k) plans.
Investments are made in guaranteed investment contracts (GICs).
Prior to January 1, 1996, investments of the Fixed Income Fund
were managed by LaSalle Street Capital Management, Ltd.
Investments were 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 Vanguard
Fixed Income Fund, a pooled fund which invests primarily in a
portfolio of securities issued as direct obligations of the U.S.
Treasury.
Loan Fund - Investments are loans made to participants as
described below.
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. Since April 1, 1996, participants may elect to change the
investment direction of their future contributions daily; prior to that
time they could change their elections 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. Loans were transferred to the Loan Fund effective January 1,
1996.
Vesting
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All Plan participants are immediately and nonforfeitably vested in
their Plan accounts.
Withdrawals
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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
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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
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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
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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 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.
Investment in Trusts
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As of January 1, 1996, investment assets of the Fixed Income Fund
were made in shares of IMC Global Inc. pooled funds shared by other IMC
Global Inc. 401(k) plans. The Plan was a .3 percent participant in the
IMC Global Fixed Income Fund at June 30, 1996.
The assets of the IMC Global Fixed Income Fund as of June 30, 1996
were as follows:
LaSalle National Trust, N.A.
Income Plus Fund $26,827,224
Guaranteed Investment Contracts -
Commonwealth Life Insurance Company 6,776,887
Hartford Life Insurance Company 5,527,202
CDC Investment Management Corp. 6,138,138
National Westminster Bank Group 4,860,622
Rabobank Alternative 5,111,051
Marshall Money Market Fund 296,649
Pending transaction 6,245
Accrued interest and dividends 509,020
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Net assets of pooled fund $56,053,038
===========
Changes in the IMC Global Fixed Income Fund from January 1 through
June 30, 1996 are summarized as follows:
Additions:
Interest and dividend income $ 1,116,667
Net depreciation in fair
value of investments (4,296)
Contributions and transfers
from other plans 1,934,134
3,046,505
Deductions:
Benefits paid 6,312,940
Investment expenses 49,689
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6,362,629
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Net decrease in assets (3,316,124)
Assets transferred at January 1, 1996 59,369,162
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Pooled fund assets at June 30, 1996 $56,053,038
===========
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). Dividend income is
recorded on the ex-dividend date. Interest from investments 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.
Participant Withdrawals
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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, 1996 and
1995.
3. Net Appreciation (Depreciation) in Fair Value of Investments
------------------------------------------------------------
During 1996 and 1995, net appreciation (depreciation) in fair value
of the Plan's investments as determined by quoted market price was as
follows:
1996 1995
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Mutual funds -
Fixed Fund $ 4,864
Balanced Fund 8,123 $ 2,301
Equity Fund 22,108 4,242
Bond Index Fund (30,566) 52,240
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$ 4,529 $ 58,783
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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:
1996 1995
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Vanguard Wellington Fund, Inc. $ 169,632 $ 36,330
Fidelity Equity-Income Fund, Inc. 233,679 72,037
Vanguard Fixed Income Fund 1,191,860
IMC Global Fixed Fund 183,925
LaSalle National Trust, N.A. Income
Plus Fund 78,294
The Northern Trust Company Collective
Treasury Bond Index Fund 1,346,764
Loans to participants 105,082 65,132
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
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ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
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June 30, 1996
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Principal amount
or number of Current
Description shares Cost value
- --------------------------- ------------ --------- --------
Mutual funds -
Vanguard Wellington
Fund, Inc. 6,734 shares $ 168,897 $ 169,632
Fidelity Equity-Income
Fund, Inc. 5,803 shares 230,752 233,679
Vanguard Fixed Income
Fund 116,166 shares 1,209,431 1,191,860
Master trust fund -
IMC Global Fixed Fund18,112 shares 182,018 183,925
Loans to participants
(9.5% - 10%) 105,082
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$1,884,178
==========
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
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ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
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YEAR ENDED JUNE 30, 1996
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Purchase Sales
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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 $ 1,872 1 $1,415,034 $1,415,966$ (932)
Category (iii) transactions
- series of transactions
in excess of 5 percent of
plan assets:
Fidelity Equity - Income
Fund, Inc. 29 149,082 6 39,453 41,605 2,152
LaSalle National Trust,
N.A. Income Plus Fund 9 12,290 4 1,532 1,532 (B)
The Northern Trust Company
Collective Short Term
Investment Fund (A) 1 14,103 14,103 (B)
Vanguard Wellington Fund 26 136,906 9 30,458 31,098 640
Vanguard Fixed Fund 19 1,524,225 19 261,243 256,897 (4,346)
IMC Global Fixed Fund 14 107,604 7 28,428 28,650 222
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, 1996.
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
BRIAN J. SMITH
-------------------------------------------
Brian J.Smith
Chairman of the Employee Benefits Committee
Date: December 19, 1996
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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BRIAN J. SMITH
- --------------
Brian J. Smith Executive Vice President December 19, 1996
Chief Financial Officer
B. RUSSELL LOCKRIDGE
- --------------------
B. Russell Lockridge Senior Vice President, December 19, 1996
Human Resources
MARSCHALL I. SMITH
- ------------------
Marschall I. Smith Senior Vice President, December 19, 1996
Secretary and General Counsel
ROBERT E. FOWLER, JR.
- ---------------------
Robert E. Fowler, Jr. President and December 19,
1996
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 October 23, 1996, 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, 1996.
ERNST & YOUNG LLP
Chicago, Illinois
December 19, 1996
Docket No. 104772
