- -----------------------------------------------------------------------
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------
FORM 11-K
(Mark One)
X ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
---
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:
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF IMC GLOBAL OPERATIONS INC.
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
- ---------------------- --------
Item 27a - Schedule of assets held for investment purposes 1
Item 27d - Schedule of reportable transactions 2
REPORT OF INDEPENDENT AUDITORS
Plan Administrator
Investment Plan for Salaried Employees of
IMC Global Operations Inc.
We have audited the accompanying statements of assets available for
benefits of the Investment Plan for Salaried Employees of IMC Global
Operations Inc. 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
<TABLE>
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF IMC GLOBAL OPERATIONS INC.
-----------------------------------------------------
STATEMENT OF ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
------------------------------------------------------------------
June 30, 1996
-------------
<CAPTION>
Fund Information
- --------------------------------------------------------------------------------
- -------------------------------------
IMC Fixed
Money
Equity Bond Global Income
Market Balanced Growth Loan
Total Fund Fund Stock Fund Fund
Fund Fund Fund Fund
-------------------------------------------------------------
- --------------------------------------
ASSETS
- ---------------------
<S> <C> <C> <C> <C> <C>
<C> <C> <C> <C>
Investments, at fair value:
Master trust funds -
IMC Global Inc.
Stock Fund $ 9,709,749 $9,709,749
IMC Global Fixed
Fund 55,789,610
$55,789,610
IMC Global Bond
Fund 2,230,150 $2,230,150
Mutual funds -
Fidelity Equity-
Income Fund,Inc. 19,997,184 $19,997,184
Vanguard Money
Market Reserves,
Inc.-Prime
Portfolio 982,782 $982,782
Vanguard Wellington
Fund, Inc. 4,970,916
$4,970,916
Fidelity Magellan
Fund, Inc. 5,362,674
$5,362,674
Loans to partici-
pants 3,518,835
$3,518,835
------------ ----------- ---------- ----------- ---------
- -- ---------- ---------- ---------- ----------
102,561,900 19,997,184 2,230,150 9,709,749
55,789,610 982,782 4,970,916 5,362,674 3,518,835
Receivables:
Employee contri-
butions 370,403 86,744 7,735 55,488
127,117 1,913 34,024 57,382
Employer contri-
butions 2,299,821 522,202 56,273 373,737
814,088 15,164 200,656 317,701
Accrued interest
and dividends 4,056
4,056
------------ ----------- ---------- ----------- ---------
- -- ---------- ---------- ---------- ----------
Total receivables 2,674,280 608,946 64,008 429,225
941,205 21,133 234,680 375,083
------------ ----------- ---------- ----------- ---------
- -- ---------- ---------- ---------- ----------
Assets available
for benefits $105,236,180 $20,606,130 $2,294,158 $10,138,974
$56,730,815 $1,003,915 $5,205,596 $5,737,757 $3,518,835
============ =========== ========== ===========
=========== ========== ========== ========== ==========
(See Notes to Financial Statements)
</TABLE>
<TABLE>
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF IMC GLOBAL OPERATIONS INC.
----------------------------------------------------
STATEMENT OF ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
------------------------------------------------------------------
June 30, 1995
-------------
<CAPTION>
Fund Information
---------------------------------------------------
- -------------------------------
IMC Fixed Money
Equity Bond Global Income Market Balanced Growth
Total Fund Fund Stock Fund Fund Fund Fund Fund
---------------------------------------------------------------
- ----------------------------------
ASSETS
- -------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair value:
IMC Global Inc.
common stock $ 8,345,859 $8,345,859
Mutual funds -
Fidelity Equity-
Income Fund,
Inc. 12,931,641$12,931,641
Bond Fund of
America, Inc. 2,232,601 $2,232,601
Dreyfus Treasury
Cash Management
Fund 11,007,605 $11,007,605
Vanguard Money Market
Reserves, Inc. -
Prime Portfolio 600,361 $600,361
Vanguard Wellington
Fund, Inc. 2,058,884 $2,058,884
Fidelity Magellan
Fund, Inc. 2,964,546 $2,964,546
LaSalle National
Trust, N.A. Income
Plus Fund 30,022,894 30,022,894
The Northern Trust
Company Collective
Short Term
Investment Fund 147,559 147,559
Loans to
participants 3,479,503 401,144 150,456 244,761 2,551,437 45,067 58,465 28,173
Investments, at
contract value:
Guaranteed investment
contracts -
CDC Investment
Management Corp.6,028,752 6,028,752
Commonwealth Life
Insurance
Company 6,428,779 6,428,779
Hartford Life
Insurance
Company 5,211,493 5,211,493
----------- ----------- ---------- --------
- -- ----------- -------- ---------- ----------
Total investments91,460,47713,332,7852,383,057 8,738,179 61,250,960 645,428 2,117,349 2,992,719
Receivables:
Employer contri-
butions 2,838,903 550,979 89,638 447,037 1,212,873 18,941 191,885 327,550
Accrued interest
and dividends 152,986 546 152,440
----------- ----------- ---------- --------
- -- ----------- -------- ---------- ----------
Total receivables2,991,889 550,979 89,638 447,583 1,365,313 18,941 191,885 327,550
----------- ----------- ---------- --------
- -- ----------- -------- ---------- ----------
Assets available
for benefits $94,452,366$13,883,764$2,472,695 $9,185,762$62,616,273 $664,369$2,309,234$3,320,269
=========== =========== ==========
========== =========== ======== ========== ==========
(See Notes to Financial Statements)
</TABLE>
<TABLE>
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF IMC GLOBAL OPERATIONS INC.
-----------------------------------------------------
STATEMENT OF CHANGES IN ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
-----------------------------------------------------------------------------
For the Year Ended June 30, 1996
--------------------------------
<CAPTION>
- --------------------------------------------------------------------------------
- -------------------------------------
IMC Fixed
Money
Equity Bond Global Income
Market Balanced Growth Loan
Total Fund Fund Stock Fund Fund
Fund Fund Fund Fund
------------------------------------------------------------
- ------------------------------------------------
<S> <C> <C> <C> <C> <C>
<C> <C> <C> <C>
Investment income:
Interest and
dividends $ 3,399,891 $ 405,549 $ 87,310 $ 37,533 $ 1,917,210
$ 38,523 $ 113,257 $ 800,509
Net appreciation
(depreciation)
in fair value
of investments 6,324,927 2,907,518 72,443 3,251,585
4,303 461,386 (372,308)
Income (loss) from
master trust
funds 1,212,541 9,781 (634,647) 1,837,407
Loans to partici-
pants-interest 296,129 18,520 6,406 10,016 104,483
1,576 3,771 2,653 $148,704
------------ ----------- ---------- ----------- ---------
- -- ---------- ---------- ---------- ----------
Total investment
income 11,233,488 3,331,587 175,940 2,664,487
3,859,100 44,402 578,414 430,854 148,704
Contributions:
Participants 4,461,479 957,184 98,398 617,255
1,764,023 23,328 351,879 649,412
Employer 2,840,431 635,850 70,439 455,083
1,026,519 18,909 242,096 391,535
------------ ----------- ---------- ----------- ---------
- -- ---------- ---------- ---------- ----------
Total contri-
butions 7,301,910 1,593,034 168,837 1,072,338
2,790,542 42,237 593,975 1,040,947
Transfers from
other plans 157,153 39,087 47,840 15,900
2,931 14,033 28,736 8,626
Cash and stock
distributed to with-
drawing partici-
pants (7,908,737) (711,022) (122,415) (499,417)
(5,908,804) (43,275) (135,630) (453,821) (34,353)
Transfers of invest-
ment direction 2,469,680 (448,739) (2,300,096)
(6,629,227) 296,182 1,845,570 1,370,772 3,395,858
------------ ----------- ---------- ----------- ---------
- -- ---------- ---------- ---------- ----------
Net increase
(decrease) in
assets available
for benefits 10,783,814 6,722,366 (178,537) 953,212
(5,885,458) 339,546 2,896,362 2,417,488 3,518,835
Assets available
for benefits -
beginning of year 94,452,366 13,883,764 2,472,695 9,185,762
62,616,273 664,369 2,309,234 3,320,269
------------ ----------- ---------- ----------- ----------
- - ---------- ---------- ---------- ----------
Assets available
for benefits -
end of year $105,236,180 $20,606,130 $2,294,158 $10,138,974
$56,730,815 $1,003,915 $5,205,596 $5,737,757 $3,518,835
============ =========== ========== ===========
=========== ========== ========== ========== ==========
(See Notes to Financial Statements)
</TABLE>
<TABLE>
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF IMC GLOBAL OPERATIONS INC.
-----------------------------------------------------
STATEMENT OF CHANGES IN ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
-----------------------------------------------------------------------------
For the Year Ended June 30, 1995
----------------------------------
<CAPTION>
Fund Information
---------------------------------------------------
- -------------------------------
IMC Fixed Money
Equity Bond Global Income Market Balanced Growth
Total Fund Fund Stock Fund Fund Fund Fund Fund
---------------------------------------------------------------
- ----------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Interest and
dividends $ 4,453,127$ 357,145 $ 151,239 $ 55,092$ 3,792,391 $ 31,436$ 49,307$ 16,517
Net appreciation
in fair value of
investments 5,975,628 1,499,454 52,416 3,732,061 192,013 499,684
Loans to participants
- interest 259,644 30,669 7,768 26,522 188,581 3,186 1,683 1,235
----------- ----------- ---------- --------
- -- ----------- -------- ---------- ----------
Total investment
income 10,688,399 1,887,268 211,423 3,813,675 3,980,972 34,622 243,003 517,436
Contributions:
Participants 4,207,614 797,290 119,659 644,879 1,780,844 27,231 333,043 504,668
Employer 3,401,893 655,802 108,150 540,553 1,448,028 23,371 234,431 391,558
----------- ----------- ---------- --------
- -- ----------- -------- ---------- ----------
Total contributions7,609,5071,453,092 227,809 1,185,432 3,228,872 50,602 567,474 889,226
Transfers from
other plans 714,535 179,187 16,282 67,705 213,505 28,649 64,908 144,299
Cash and stock
distributed to with-
drawing partici-
pants (8,260,574) (526,578) (46,478) (177,121)(7,399,096) (61,433) (43,996) (5,872)
Transfers of invest-
ment direction 177 76,025(2,940,422) (346,247) (35,558) 1,477,845 1,768,180
----------- ----------- ---------- --------
- -- ----------- -------- ---------- ----------
Net increase (decrease)
in assets available
for benefits 10,751,867 2,993,146 485,061 1,949,269 (321,994) 16,882 2,309,234 3,320,269
Assets available
for benefits
-beginning of year83,700,49910,890,6181,987,634 7,236,493 62,938,267 647,487
----------- ----------- ---------- --------
- -- ----------- -------- ---------- ----------
Assets available
for benefits
-end of year $94,452,366$13,883,764$2,472,695 $9,185,762$62,616,273 $664,369$2,309,234$3,320,269
=========== =========== ==========
========== =========== ======== ========== ==========
(See Notes to Financial Statements)
</TABLE>
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF IMC GLOBAL OPERATIONS INC.
------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
1. Description of the Plan
-----------------------
The following description of the Investment Plan for Salaried
Employees of IMC Global Operations Inc. (the Plan), formerly the
Investment Plan for Salaried Employees of IMC Fertilizer, Inc.,
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 March 1, 1988 and was most recently
restated on July 1, 1993 and amended through March 1, 1995. Salaried
employees of IMC Global Operations Inc. (a wholly-owned subsidiary of
IMC Global Inc.) and its wholly-owned domestic subsidiaries (the
Company) are eligible to participate in the Plan upon completion of one
year of service. Effective September 1, 1996, participation is
immediate. While the Company has not expressed any intent to terminate
the Plan, it is free to do so at any time.
Contributions
- -------------
The Plan is funded by contributions from participants in the form
of payroll deductions/salary reductions of up to 15 percent of
participants' base monthly salaries. A participant may change the
amount of payroll deduction/salary reduction twice a year, as of July 1
or January 1, upon giving the required notice. The Plan provides a
qualified cash or deferred arrangement within the meaning of Section
401(k) of the Internal Revenue Code (the IRC). Salary reduction
contributions, elected by certain participants, may be reduced (or
refunded) to comply with certain non-discrimination requirements of
Section 401(k) or the limitations of Section 415 of the IRC. In
addition, salary reduction contributions cannot exceed $9,500 in
calendar year 1996 ($9,240 for calendar year 1995). The limitation on
salary reduction contributions can be adjusted or recharacterized as
after-tax contributions not to exceed the lesser of the 15 percent or
$9,500 ($9,240 in 1995) limits described above each July 1 and January
1 by the Employee Benefits Committee. In addition, the Plan also is
funded by employer contributions, as determined by IMC Global Inc.'s
Board of Directors, of not less than 20 percent of a participant's
eligible contributions, which are contributions that do not exceed 6
percent of a participant's base monthly salary. IMC Global Inc. may
make additional contributions each year as determined by its Board of
Directors. Employer contributions are subject to certain limitations
imposed by Section 415 of the IRC. Total employer contributions were
equal to 100 percent of participants' eligible contributions for the
year ended June 30, 1996 (125 percent for the year ended June 30,
1995). Under certain circumstances, participants may rollover their
vested benefits from other plans to the Plan.
Participant Accounts
- --------------------
Separate accounts are maintained for each participant. Each
participant's account is adjusted for participant and employer
contributions, withdrawals and fees, if any, interest, dividends and
net realized or unrealized gains or losses.
Administrative Expenses
- -----------------------
Certain administrative expenses of the Plan are borne by the
Company.
Investment Programs
- -------------------
Since January 1, 1996, the Plan's 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:
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 Fund - Since January 1, 1996, investments are made in shares
of the IMC Global Bond Fund, a pooled bond fund shared only by
other IMC Global Operations Inc. 401(k) plans. The fund invests
substantially all of the assets in shares of the Bond Fund of
America, Inc., a mutual fund comprised of marketable corporate debt
securities, U.S. Government securities, mortgage-related
securities, other asset-backed securities and cash or money market
instruments. Prior to January 1, 1996, the Bond Fund of America,
Inc. shares were held directly.
IMC Global Stock Fund - Investments are made solely in the common
stock of IMC Global Inc.
Fixed Income Fund - Since January 1, 1996, investments are made in
shares of IMC Global Fixed Fund, a pooled fund shared only by other
IMC Global Operations Inc. 401(k) plans. Prior to that time,
investments of the Fixed Income Fund were managed by LaSalle Street
Capital Management, Ltd. Investments are made in guaranteed
investment contracts (GICs), the Marshall Money Market Fund and,
prior to January 1, 1996, in the LaSalle National Trust, N.A.
Income Plus Fund. The 1995 holdings are described below:
(a) A contract with CDC Investment Management Corp. with a
guaranteed interest rate of 7.5 percent through June 30, 2000.
(b) A contract with Commonwealth Life Insurance Company with a
guaranteed interest rate of 7.27 percent through July 6, 1998.
(c) A GIC with Hartford Life Insurance Company with a guaranteed
interest rate of 8.05 percent through June 30, 1995. A
portion of the GIC balance was reinvested in a new Hartford
Life Insurance Company GIC in December 1994. The remaining
balance was temporarily reinvested in the Dreyfus Treasury
Cash Management Fund at June 30, 1995 before being reinvested
in the GIC described in (d) below.
(d) A contract with Hartford Life Insurance Company with a
guaranteed interest rate of 8.15 percent through December 19,
1997.
(e) The LaSalle National Trust, N.A. Income Plus Fund, a pooled
fund which invests primarily 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.
(f) Another GIC with Provident National Assurance Company with a
guaranteed interest rate of 8.3 percent through June 30, 1995.
The Provident National Assurance Company contract also matured
in four installments. Proceeds from the maturity of the final
installment payment were invested in the LaSalle National
Trust, N.A. Income Plus Fund described in (h) below.
Money Market Fund - Investments are made in shares of the Vanguard
Money Market Reserves, Inc. - Prime Portfolio, a mutual fund. The
Prime Portfolio invests in high quality money market obligations
that mature in 13 months or less and include negotiable
certificates of deposit, bankers' acceptances, commercial paper,
short-term corporate obligations, short-term Eurodollar and Yankee
bank obligations, U.S. Treasury obligations and securities issued
or guaranteed by agencies and instrumentalities of the U.S.
Government.
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.
Growth Fund - Investments are made in shares of the Fidelity
Magellan Fund, Inc., a mutual fund which invests in common stock
and securities of domestic, foreign and multinational issuers.
Loan Fund - Investments are loans made to participants, as
described below.
Participants elect their desired investment program upon joining
the Plan. Since April 1,1996, they may elect to change the investment
direction of their existing account balances and their future
contributions daily. Prior to that time, as of July 1, October 1,
January 1 and April 1 of any Plan year, upon giving prescribed notice,
participants could elect to transfer the investment direction of their
future contributions or their existing account balances in any fund or
funds to any other fund, or in 25 percent increments to any combination
of funds. Effective July 1, 1991 through March 31, 1996, participants
could not transfer funds of existing account balances between the Fixed
Income Fund and the Bond Fund nor between the Fixed Income Fund and the
Money Market Fund. The Balanced Fund and Growth Fund investment
programs were introduced to the Plan effective January 1, 1996; at the
same time loans were transferred to the Loan Fund.
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. Subject to certain requirements and
limitations, participants may withdraw funds. Most withdrawals made by
participants, including hardship withdrawals from their Salary
Reduction Accounts, will result in suspension of Plan participation for
at least one year.
Except as noted below, participants will receive distribution of
their interest in the Plan in a lump sum payment.
Deferred Distributions
- ----------------------
Participants who terminate their employment and are eligible for
early or normal retirement under any Company pension plan will be
permitted to elect, at any time prior to retirement, to defer receipt
of their Plan distributions until no later than their 70th birthday.
Participants electing deferral must: (1) elect to receive their
distributions in: (a) a lump sum on the date of distribution, or (b) in
equal annual installments not to exceed ten, and (2) make an election
for the method of distribution in the event of their death prior to
total distribution.
Participants who terminate their employment prior to eligibility
for early or normal retirement and whose Plan accounts exceed $3,500
must consent to distribution of their accounts. Participants may defer
receipt of their Plan distribution until no later than their 70th
birthdays.
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 monthly 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, except the guaranteed
investment contracts which are carried at contract 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 or units of the master trust
funds, the LaSalle National Trust, N.A. Income Plus Fund, The Northern
Trust Company Collective Trust Short Term Investment Fund and the
mutual funds 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
- --------------------
As of January 1, 1996, investment assets of the Bond Fund, the
Company Stock Fund and 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 100 percent, 100 percent and 99.5 percent, respectively,
participant in the IMC Global Bond Fund, the IMC Global Stock Fund and
the IMC Global Fixed Income Fund at June 30, 1996.
The assets of the pooled funds as of June 30, 1996 were as follows:
IMC Global IMC Global
IMC Global Company Fixed
Bond Fund Stock Fund Income Fund
--------- ---------- -----------
Bond Fund of America, Inc. $2,202,956
IMC Global Inc. common stock $9,434,770
LaSalle Natoinal 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 27,058 321,888 296,649
Pending transaction (47,947) 6,245
Accrued interest and dividends 136 1,038 509,020
---------- ---------- -----------
Net assets of pooled fund $2,230,150 $9,709,749 $56,053,038
========== ========== ===========
Changes in the pooled balances from January 1 through June 30, 1996
are summarized as follows:
IMC Global IMC Global
IMC Global Company Fixed
Bond Fund Stock Fund Income Fund
--------- ---------- -----------
Additions:
Interest and dividend income $ 42,106 $ 22,522 $ 1,116,667
Net appreciation
(depreciation) in fair
value of investments (22,900) 4,139,424 (4,296)
Contributions and transfers
from other plans 90,886 1,063,880 1,934,134
---------- ---------- -----------
110,092 5,225,826 3,046,505
Deductions:
Benefits paid 234,355 1,549,921 6,312,940
Investment expenses 49,689
---------- ---------- -----------
234,355 1,549,921 6,362,629
---------- ---------- -----------
Net increase (decrease)
in assets (124,263) 3,675,905 (3,316,124)
Assets transferred at
January 1, 1996 2,354,413 6,033,844 59,369,162
---------- ---------- -----------
Pooled fund assets at
June 30, 1996 $2,230,150 $9,709,749 $56,053,036
========== ========== ===========
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
- -------------
Contributions from participants are recorded monthly when due from
the Company. Contributions by the Company are made monthly based on
the minimum contribution percentage (20 percent) required by the Plan.
Any additional contributions by the Company are accrued when approved
by its Board of Directors.
<TABLE>
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. The following schedule
reconciles the net assets available for benefits per the Form 5500 to the
financial statements:
<CAPTION>
IMC Fixed Money
Equity Bond Global Income Market
Balanced Growth Loan
Total Fund Fund Stock Fund Fund Fund
Fund Fund Fund
----------------------------------------------------------------
- ---------------------------------------------
June 30, 1996
- -------------
<S> <C> <C> <C> <C> <C>
<C> <C> <C> <C>
Net assets available
for benefits per
the Form 5500 $105,118,045 $20,588,738 $2,286,330 $10,145,110 $56,637,957 $1,003,915 $5,201,001 $5,736,159 $3,518,635
Amounts allocated
to withdrawing
participants -
June 30, 1995 133,135 17,392 7,828 2,408 99,314 4,595 1,598
June 30, 1996 (15,000) (8,544) (6,456)
------------ ----------- ---------- ------------ ---------
- -- ---------- ---------- ---------- ----------
Net assets available
for benefits per
the financial
statements $105,236,180 $20,606,130 $2,294,158 $10,138,974 $56,730,815 $1,003,915 $5,205,596 $5,737,757 $3,518,835
============ =========== ========== ===========
=========== ========== ========== ========== ==========
June 30, 1995
- -------------
Net assets available
for benefits per
the Form 5500 $93,503,720 $13,815,731 $2,473,827 $ 9,187,782 $61,729,257 $ 661,427 $2,313,829 $3,321,867
Amounts allocated
to withdrawing
participants -
June 30, 1994 1,081,781 85,425 6,696 388 986,330 2,942
June 30, 1995 (133,135) (17,392) (7,828) (2,408) (99,314) (4,595) (1,598)
----------- ----------- ---------- ------------ ---------
- -- ---------- ---------- ----------
Net assets available
for benefits per
the financial
statements $94,452,366 $13,883,764 $2,472,695 $ 9,185,762 $62,616,273 $ 664,369 $2,309,234 $3,320,269
=========== =========== ========== ===========
=========== ========== ========== ==========
</TABLE>
<TABLE>
The following schedule reconciles the withdrawal amounts per the Form 5500 to
the statement of changes in assets available for benefits:
<CAPTION>
IMC Fixed
Money
Equity Bond Global Income
Market Balanced Growth Loan
Total Fund Fund Stock Fund Fund
Fund Fund Fund Fund
-----------------------------------------------------
- ----------------------------------------------
<S> <C> <C> <C> <C> <C>
<C> <C> <C> <C>
Year ended June 30, 1996
- ------------------------
Withdrawals per
Form 5500 $7,790,602 $693,630 $114,587 $505,553 $5,815,946 $43,275 $131,035 $452,223 $34,353
Withdrawal liabilities
per Form 5500:
at June 30, 1995 133,135 17,392 7,828 2,408 99,314 4,595 1,598
at June 30, 1996 (15,000) (8,544) (6,456)
---------- -------- -------- -------- ---------- ------- -------- --------- -------
Withdrawals per statement
of changes in assets
available for benefits $7,908,737 $711,022 $122,415 $499,417 $5,908,804 $43,275 $135,630 $453,821 $34,353
========== ======== ======== ======== ========== ======= ======== ========= =======
Year ended June 30, 1995
- ------------------------
Withdrawals per
Form 5500 $7,311,928 $458,545 $ 47,610 $179,141
$6,512,080 $58,491 $ 48,591 $ 7,470
Withdrawal liabilities
per Form 5500:
at June 30, 1994 1,081,781 85,425 6,696 388 986,330 2,942
at June 30, 1995 (133,135) (17,392) (7,828) (2,408) (99,314) (4,595) (1,598)
---------- -------- -------- -------- ---------- ------- -------- ---------
Withdrawals per statement
of changes in assets
available for benefits $8,260,574 $526,578 $ 46,478 $177,121 $7,399,096 $61,433 $ 43,996 $ 5,872
========== ======== ======== ======== ========== ======= ======== =========
</TABLE>
<TABLE>
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:
<CAPTION>
IMC Fixed Money
Equity Bond Global Income Market
Balanced Growth
Total Fund Fund Stock Fund Fund Fund
Fund Fund
Year ended June 30, 1996
- ------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Common stocks$3,251,585 $3,251,585
Mutual funds 3,073,342$2,907,518$72,443 $4,303$461,386$(372,308)
---------- ---------- ------- ---------- ------ -------- ---------
Net appreciation
(depreciation) in
fair value $6,324,927$2,907,518$72,443$3,251,585 $4,303$461,386$(372,308)
========== ========== ======= ========== ====== ======== =========
Year ended June 30, 1995
Common stocks$3,732,061 $3,732,061
Mutual funds 2,243,567$1,499,454$52,416 $192,013$499,684
---------- ---------- ------- ---------- -------- --------
Net appreciation
in fair value$5,975,628$1,499,454$52,416$3,732,061 $192,013$499,684
========== ========== ======= ========== ======== ========
</TABLE>
4. Significant Investments
-----------------------
Investments that represent 5 percent or more of assets available
for benefits at June 30 were as follows:
1996 1995
----------- -----------
IMC Global Inc. Stock Fund $ 9,709,749
IMC Global Inc. common stock $ 8,345,859
IMC Global Inc. Fixed Fund 55,789,610
Mutual funds -
Fidelity Equity-Income Fund, Inc. 19,997,184 12,931,641
Dreyfus Treasury Cash Management Fund 11,007,605
Fidelity Magellan Fund, Inc. 5,362,674 2,964,546
LaSalle National Trust, N.A. Income
Plus Fund 30,022,894
Guaranteed investment contracts -
CDC Investment Management Corp. 6,028,752
Commonwealth Life Insurance Company 6,428,779
Hartford Life Insurance Company 5,211,493
5. Federal Income Tax Status
-------------------------
The Internal Revenue Service ruled June 7, 1989 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
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF IMC GLOBAL OPERATIONS INC.
------------------------------------------------------
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
----------------------------------------------------------
June 30, 1996
--------------------------------------
Principal amount
or number of Current
Description shares or units Cost value
- ------------------------- ---------------- ---------- ------------
Master trust funds -
IMC Global Inc. Stock Fund257,872 units $ 6,001,724 $ 9,709,749
IMC Global Inc. Bond Fund220,664 units 2,250,815 2,230,150
IMC Global Fixed Fund5,493,885 units 54,949,501 55,789,610
Mutual funds -
Fidelity Equity-Income
Fund, Inc. 496,578 shares 19,664,552 19,997,184
Vanguard Money Market
Reserves, Inc. -
Prime Portfolio 982,782 shares 982,782 982,782
Vanguard Wellington
Fund, Inc. 197,337 shares 4,941,912 4,970,916
Fidelity Magellan
Fund, Inc. 71,694 shares 6,043,366 5,362,674
Loans to participants
(7% - 11.9%) 3,518,835
------------
$102,561,900
============
Schedule 2
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF IMC GLOBAL OPERATIONS INC.
---------------------------------------
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
----------------------------------------------
FOR THE YEAR ENDED JUNE 30, 1996
--------------------------------
Purchases Sales (B) Gain
------------ ------------------------------------
Description Number Cost Number Cost Proceeds (Loss)
- ------------------ ----- ----- ------ -------- -----------------
Category (i) trans-
actions - individual
transactions in excess
of 5 percent of plan
assets:
Rabobank Alternative,
6.1416%, due 3/15/01 1 $4,994,803
Hartford Life
Insurance Company,
8.15%, through
12/19/97 1 $11,022,370 $11,022,370 (B)
Category (iii) trans-
actions - series
of transactions in
excess of 5 percent
of plan assets:
Fidelity Equity-Income
Fund, Inc. 61 4,389,468 44 1,310,258 1,349,875 $ 39,617
Fidelity Magellan
Fund, Inc. 56 2,487,734 44 817,189 761,453 (55,736)
Dreyfus Treasury Cash
Management Fund 14 1,362,595 14 12,370,200 12,370,200 (B)
LaSalle National
Trust, N.A. Income
Plus Fund 40 26,959,251 25 26,407,669 26,407,669 (B)
The Northern Trust
Company Collective
Short Term Invest-
ment Fund (A) 26 3,101,072 17 17,547,053 17,547,053 (B)
IMC Global Fixed
Income Fund 38 1,820,450 45 6,224,643 6,290,600 65,957
Hartford Life
Insurance Company,
8.15%, through
12/19/97 4 111,203 1 11,022,370 11,022,370 (B)
National Westminster
Bank Group, 6.73%,
through 11/15/98 9 5,039,227 8 151,119 151,119 (B)
Rabobank Alternative,
6.1416%, through
3/15/01 3 5,285,100
Marshall Money
Market Fund 62 3,156,318 58 3,156,318 3,156,318 (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.
Investment Plan for Salaried Employees of
IMC Global Operations Inc.
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
- -----------------------------------------------------------------------
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. 33-22079) pertaining to the Investment Plan for
Salaried Employees of IMC Global Operations Inc. and in the related
Prospectus of our report dated October 23, 1996, with respect to the
financial statements and supplemental schedules of the Investment Plan
for Salaried Employees of IMC Global Operations Inc. 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. 104771
