- ---------------------------------------------------------------------
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
For the year ended December 31, 1998
OR
--- TRANSITION REPORT PURSUANT TO SECTION 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
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:
IMC GLOBAL OPERATIONS, INC.
PROFIT SHARING AND SAVINGS PLAN
(Formerly the 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
- ---------------------------------------------------------------------
<PAGE>
IMC Global Operations Inc.
Profit Sharing and Savings Plan
Financial Statements
and Supplemental Schedules
Year ended December 31, 1998 and
six months ended December 31, 1997
Contents
--------
Report of Independent Auditors 1
Financial Statements
Statements of Net Assets Available for Benefits,
With Fund Information 2
Statements of Changes in Net Assets Available for Benefits,
With Fund Information 4
Notes to Financial Statements 6
Supplemental Schedules
Line 27a - Schedule of Assets Held for Investment Purposes 17
Line 27b - Schedule of Loans or Fixed Income Obligations 18
Line 27d - Schedule of Reportable Transactions 20
<PAGE>
Report of Independent Auditors
Plan Administrator
IMC Global Operations Inc.
Profit Sharing and Savings Plan
We have audited the accompanying statements of net assets available for
benefits of the IMC Global Operations Inc. Profit Sharing and Savings Plan as
of December 31, 1998 and 1997, and the related statements of changes in net
assets available for benefits for the year ended December 31, 1998 and the
six months ended December 31, 1997. 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 net assets available for benefits of the Plan at
December 31, 1998 and 1997, and the changes in its net assets available for
benefits for the year ended December 31, 1998 and the six months ended
December 31, 1997, 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 December 31, 1998, and
reportable transactions for the year then ended, are presented for purposes
of additional analysis and are not a required part of the financial
statements, but are supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974, and are not a required part of the
basic financial statements. The supplemental schedules are the
responsibility of the Plan's management. The Fund Information in the
statement of net assets available for benefits and the statement of changes
in net assets available for benefits is presented for purposes of additional
analysis rather than to present the net assets available for benefits and
changes in net 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.
Chicago, Illinois Ernst & Young, LLP
May 12, 1999
<PAGE>
<TABLE>
EIN 36-3513204
Plan #004
IMC Global Operations Inc. Profit Sharing and Savings Plan
Statement of Net Assets Available for Benefits, With Fund Information
December 31, 1998
Fund Information
------------------------------------------------------------
Company Fixed
Equity Bond Stock Income Balanced
Total Fund Fund Fund Fund Fund
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Assets
Investments, at fair value:
Master trust funds:
Interest in IMC Global
Stock Fund $ 20,353,724 $ - $ - $20,353,724 $ - $ -
Interest in IMC Global
Fixed Income Fund 54,179,806 - - - 54,179,806 -
Interest in IMC Global Bond Fund 3,203,031 - 3,203,031 - - -
Mutual funds:
Fidelity Equity-Income Fund, Inc. 19,847,478 19,847,478 - - - -
Vanguard Wellington Fund, Inc. 16,634,658 - - - - 16,634,658
Fidelity Magellan Fund, Inc. 12,662,803 - - - - -
Templeton Foreign Fund, Inc. 2,709,064 - - - - -
Franklin Balance Sheet
Investment Fund, Inc. 11,497,429 - - - - -
Vanguard Index Trust 500
Fund, Inc. 30,271,745 - - - - -
Loans to participants 5,354,133 - - - - -
----------------------------------------------------------------------------
Total investments 176,713,871 19,847,478 3,203,031 20,353,724 54,179,806 16,634,658
<PAGE>
Receivables:
Participant contributions 264,646 34,036 5,861 39,034 56,510 26,187
Company contributions 5,688,830 174,060 26,978 182,480 4,179,311 135,354
----------------------------------------------------------------------------
<PAGE>
Total receivables 5,953,476 208,096 32,839 221,514 4,235,821 161,541
----------------------------------------------------------------------------
182,667,347 20,055,574 3,235,870 20,575,238 58,415,627 16,796,199
Due (to) from brokers 2,129 3,453 - (1,733) 2,279 (1,733)
----------------------------------------------------------------------------
Net assets available for benefits $182,669,476 $20,059,027 $3,235,870 $20,573,505 $58,417,906 $16,794,466
============================================================================
Fund Information
-----------------------------------------------------------------------------
International Aggressive Index
Growth Equity Equity Equity Loan
Fund Fund Fund Fund Fund
-----------------------------------------------------------------------------
Assets
Investments, at fair value:
Master trust funds:
Interest in IMC Global Stock Fund $ - $ - $ - $ - $ -
Interest in IMC Global Fixed Income Fund - - - - -
Interest in IMC Global Bond Fund - - - - -
Mutual funds:
Fidelity Equity-Income Fund, Inc. - - - - -
Vanguard Wellington Fund, Inc. - - - - -
Fidelity Magellan Fund, Inc. 12,662,803 - - - -
Templeton Foreign Fund, Inc. - 2,709,064 - - -
Franklin Balance Sheet Investment
Fund, Inc. - - 11,497,429 - -
Vanguard Index Trust 500 Fund, Inc. - - - 30,271,745 -
Loans to participants - - - - 5,354,133
-----------------------------------------------------------------
Total investments 12,662,803 2,709,064 11,497,429 30,271,745 5,354,133
<PAGE>
Receivables:
Participant contributions 29,649 5,664 22,750 44,955 -
Company contributions 360,923 30,577 119,483 479,664 -
-----------------------------------------------------------------
Total receivables 390,572 36,241 142,233 524,619 -
-----------------------------------------------------------------
13,053,375 2,745,305 11,639,662 30,796,364 5,354,133
Due (to) from brokers 858 168 (1,399) 236 -
-----------------------------------------------------------------
Net assets available for benefits $13,054,233 $2,745,473 $11,638,263 $30,796,600 $5,354,133
=================================================================
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
EIN 36-3513204
Plan #004
IMC Global Operations Inc. Profit Sharing and Savings Plan
Statement of Net Assets Available for Benefits, With Fund Information
December 31, 1997
Fund Information
---------------------------------------------------------------------------------------------
Company Fixed Money
Equity Bond Stock Income Market Balanced Growth Loan
Total Fund Fund Fund Fund Fund Fund Fund Fund
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets
Investments, at fair value:
Master trust funds:
Interest in IMC Global
Stock Fund $ 18,261,772 $ - $ - $18,261,772 $ - $ - $ - $ - $ -
Interest in IMC Global
Fixed Income Fund 41,120,483 - - - 41,120,483 - - - -
Interest in IMC
Global Bond Fund 2,544,041 - 2,544,041 - - - - - -
Mutual funds:
Fidelity Equity-
Income Fund, Inc. 21,946,755 21,946,755 - - - - - - -
Vanguard Wellington
Fund, Inc. 6,136,060 - - - - - 6,136,060 - -
Fidelity Magellan
Fund, Inc. 6,816,865 - - - - - - 6,816,865 -
Loans to participants 3,297,636 - - - - - - - 3,297,636
-------------------------------------------------------------------------------------------------------------
Total investments 100,123,612 21,946,755 2,544,041 18,261,772 41,120,483 - 6,136,060 6,816,865 3,297,636
<PAGE>
Receivables:
Participant
contributions 151,534 35,398 3,393 24,788 48,293 1,859 14,369 23,434 -
Company contributions 1,045,934 236,888 26,592 180,709 325,672 26,040 95,780 154,253 -
Accrued interest
and dividends 2,103 - - - - 2,103 - - -
-------------------------------------------------------------------------------------------------------------
Total receivables 1,199,571 272,286 29,985 205,497 373,965 30,002 110,149 177,687 -
-------------------------------------------------------------------------------------------------------------
101,323,183 22,219,041 2,574,026 18,467,269 41,494,448 30,002 6,246,209 6,994,552 3,297,636
Due (to) from brokers (191,484) 375 (189,120) 116,220 (589,423) 470,433 - 31 -
-------------------------------------------------------------------------------------------------------------
Net assets available
for benefits $101,131,699 $22,219,416 $2,384,906 $18,583,489 $40,905,025 $500,435 $6,246,209 $6,994,583 $3,297,636
=============================================================================================================
See accompanying notes.
</TABLE
<PAGE>
EIN 36-3513204
Plan #004
IMC Global Operations Inc. Profit Sharing and Savings Plan
Statement of Changes in Net Assets Available for Benefits, With Fund Information
Year ended December 31, 1998
<CAPTION>
Fund Information
----------------------------------------------------------------
Company Fixed Money
Equity Bond Stock Income Market
Total Fund Fund Fund Fund Fund
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Interest and dividends $ 1,946,596 $ 331,585 $ - $ - $ - $ 181
Net realized and
unrealized appreciation
(depreciation) in fair
value of investments 11,866,867 2,109,751 - - - -
Income (loss) from
master trust funds (2,057,478) - 155,302 (5,731,674) 3,363,592 -
--------------------------------------------------------------------------------
Total investment income 11,755,985 2,441,336 155,302 (5,731,674) 3,363,592 181
Contributions:
Participants 9,111,962 1,242,616 176,933 836,530 1,690,957 -
Company 9,719,918 717,538 110,384 585,434 5,039,281 -
--------------------------------------------------------------------------------
Total contributions 18,831,880 1,960,154 287,317 1,421,964 6,730,238 -
Transfers (to) from
other plans 66,984,629 469,959 125,840 (115,170) 15,916,973 (500,435)
Distributions (16,034,717) (1,400,787) (83,301) (470,375) (8,585,531) -
Transfers of
investment direction - (5,631,051) 365,806 6,885,271 87,609 (181)
--------------------------------------------------------------------------------
Net increase (decrease)
in net assets
available for benefits 81,537,777 (2,160,389) 850,964 1,990,016 17,512,881 (500,435)
Net assets available
for benefits -
Beginning of year 101,131,699 22,219,416 2,384,906 18,583,489 40,905,025 500,435
-------------------------------------------------------------------------------
Net assets available
for benefits -
End of year $182,669,476 $20,059,027 $3,235,870 $20,573,505 $58,417,906 $ -
===============================================================================
<PAGE>
Fund Information
-------------------------------------------------------------------------------
International Aggressive Index
Balanced Growth Equity Equity Equity Loan
Fund Fund Fund Fund Fund Fund
-------------------------------------------------------------------------------
Investment income:
Interest and dividend $ 600,676 $ 68,275 $ 72,280 $ 195,038 $ 221,048 $ 457,513
Net realized and
unrealized appreciation
(depreciation) in fair
value of investments 1,230,942 2,863,321 (249,370) (223,933) 6,291,458 -
Income (loss) from
master trust funds - - - - - -
-------------------------------------------------------------------------------
Total investment income 1,831,618 2,931,596 (177,090) (28,895) 6,512,506 457,513
Contributions:
Participants 1,260,236 1,092,879 292,002 853,722 1,666,087 -
Company 576,866 835,256 149,675 513,574 1,191,910 -
-------------------------------------------------------------------------------
Total contributions 1,837,102 1,928,135 441,677 1,367,296 2,857,997 -
Transfers (to) from
other plans 9,925,873 877,092 2,932,046 12,677,866 22,473,856 2,200,729
Distributions (1,047,621) (555,592) (208,644) (1,267,961) (2,124,692) (290,213)
Transfers of
investment direction (1,998,715) 878,419 (242,516) (1,110,043) 1,076,933 (311,532)
-------------------------------------------------------------------------------
Net increase (decrease)
in net assets
available for benefits 10,548,257 6,059,650 2,745,473 11,638,263 30,796,600 2,056,497
Net assets available
for benefits -
Beginning of year 6,246,209 6,994,583 - - - 3,297,636
-------------------------------------------------------------------------------
Net assets available
for benefits -
End of year $16,794,466 $13,054,233 $2,745,473 $11,638,263 $30,796,600 $5,354,133
===============================================================================
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
EIN 36-3513204
Plan #004
IMC Global Operations Inc. Profit Sharing and Savings Plan
Statement of Changes in Net Assets Available for Benefits, With Fund Information
Six months ended December 31, 1997
<CAPTION>
Fund Information
----------------------------------------------------------------------------------------------
Company Fixed Money
Equity Bond Stock Income Market Balanced Growth Loan
Total Fund Fund Fund Fund Fund Fund Fund Fund
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Interest and
dividends $ 525,997 $ 184,847 $ - $ - $ - $ 15,161 $ 142,714 $ 34,155 $149,120
Net realized and
unrealized appreciation
in fair value
of investments 2,899,660 2,017,099 - - - - 400,682 481,879 -
Income (loss) from
master trust funds 1,361,947 - 104,985 (111,820) 1,368,782 - - - -
------------------------------------------------------------------------------------------------------------
Total investment
income 4,787,604 2,201,946 104,985 (111,820) 1,368,782 15,161 543,396 516,034 149,120
Contributions:
Participants 2,014,148 479,640 46,182 384,172 566,641 13,006 199,376 325,131 -
Company 1,260,581 288,097 32,074 218,265 390,039 27,741 117,286 187,079 -
------------------------------------------------------------------------------------------------------------
Total contributions 3,274,729 767,737 78,256 602,437 956,680 40,747 316,662 512,210 -
Transfers to
other plans 112,347 - - 28,709 33,724 - 11,203 38,711 -
Distributions (4,061,476) (758,346) (34,729) (274,646) (2,113,882) (217,303) (524,991) (51,683) (85,896)
Transfers of investment
direction - (1,419,574) (41,772) 5,427,167 (3,456,521) (169,034) (154,184) (149,395) (36,687)
------------------------------------------------------------------------------------------------------------
<PAGE>
Net increase (decrease)
in net assets
available for
benefits 4,113,204 791,763 106,740 5,671,847 (3,211,217) (330,429) 192,086 865,877 26,537
Net assets available
for benefits -
Beginning of period 97,018,495 21,427,653 2,278,166 12,911,642 44,116,242 830,864 6,054,123 6,128,706 3,271,099
------------------------------------------------------------------------------------------------------------
Net assets available
for benefits -
End of period $101,131,699 $22,219,416 $2,384,906 $18,583,489 $40,905,025 $500,435 $6,246,209 $6,994,583 $3,297,636
=============================================================================================================
See accompanying notes.
</TABLE
<PAGE>
EIN 36-3513204
Plan #004
IMC Global Operations Inc.
Profit Sharing and Savings Plan
Notes to Financial Statements
Year ended December 31, 1998 and
six months ended December 31, 1997
1. Description of the Plan
Effective January 1, 1998, the Investment Plan for Salaried
Employees of IMC Global Operations Inc. was amended and restated
and renamed the IMC Global Inc. Profit Sharing and Savings Plan
(Plan).
Also, on January 1, 1998, the following plans were merged with the
Plan: IMC Global-Hutson Co. 401(k) Profit Sharing Plan; IMC
Global-Hutson Agrico Services 401(k) Profit Sharing Plan; IMC
Global-Vigoro Employees' Salary Plan; and the IMC Global Non Union-
Hourly Employees of IMC Global Operations Inc. Plan. Effective
July 1, 1998, the IMC Global Profit Sharing and Savings-Western Ag
Plan merged into the Plan.
The following description of 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 March 1, 1988, for salaried employees
of IMC Global Operations Inc. (a wholly owned subsidiary of IMC
Global Inc.) and its wholly owned domestic subsidiaries (the
Company). Employees are eligible to participate in the Plan
immediately upon 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 subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA).
The Company changed its year-end from June 30 to December 31 during
calendar 1997. As a result of that change, the Plan also changed
its year-end. These financial statements reflect activity for the
year ended December 31, 1998, and for a six-month period ended
December 31, 1997.
<PAGE>
Contributions
The Plan is funded by contributions from participants in the form
of payroll deductions/ salary reductions of up to 15% of
participants' base monthly salaries, not to exceed $10,000 in 1998
and $9,500 in 1997. A participant may change the amount of payroll
deduction/salary reduction at any time. 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 nondiscrimination
requirements of section 401(k) or the limitations of section 415 of
the IRC. In addition, the Plan is also funded by Company matching
contributions, as determined by the Company's Board of Directors
which are subject to certain limitations imposed by section 415 of
the IRC. Company matching contributions were equal to 100% of the
first 3% and 50% of the second 3% of participants' eligible
contributions for the year ended December 31, 1998. Company
contributions were equal to 100% of participants' eligible
contributions for the six months ended December 31, 1997. The
Company also makes a profit-sharing contribution, subject to
certain limitations and requirements. All or any portion of the
profit-sharing contributions that will be applied to the Company
Stock Fund may be in the form of cash or shares of IMC Global Inc.
common stock. Generally, a participant must be employed on the
last day of the Plan year to be eligible for profit-sharing
contributions. The profit-sharing contribution for the 1998 Plan
year was $5,547,691. That portion of the contribution applied to
the Company Stock Fund was in the form of cash.
Under certain circumstances, participants may roll over their
vested benefits from other qualified benefit plans to the Plan.
Participant Accounts
Separate accounts are maintained for each participant. Each
participant's account is adjusted for participant and Company
contributions, withdrawals, fees, interest, dividends, and net
realized and unrealized gains or losses.
Administrative Expenses
Certain administrative expenses of the Plan are borne by the
Company.
<PAGE>
Investment Programs
The Plan's investments are administered by Marshall & Ilsley Trust
Company under a trust agreement dated January 1, 1996. Investment
programs available to participants are as follows:
Equity Fund - Assets are invested in shares of the Fidelity
Equity-Income Fund, Inc., a mutual fund which invests at least
65% 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 - Assets are invested 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.
Company Stock Fund - Assets are invested in shares of the IMC-
Global Stock Fund, a pooled fund shared only by other IMC
Global Operations Inc. 401(k) plans, which invests in the
common stock of IMC Global Inc.
Fixed Income Fund - Assets are invested in shares of IMC Global
Fixed Income Fund, a pooled fund shared only by other IMC
Global Operations Inc. 401(k) plans, in guaranteed investment
contracts (GICs), the Marshall Money Market Fund, the LaSalle
National Trust, N.A. Income Plus Fund, and the M&I Stable
Principal Fund. The December 31, 1998, holdings are described
below:
a. Contract with CDC Investment Management Corp. with a
guaranteed interest rate of 7.5% through June 30, 2000.
b. Annuity contract with National Westminster Bank Group with
a guaranteed interest rate of 6.73%.
c. Contract with Rabobank Alternative with a guaranteed
interest rate of 6.17% through March 15, 2001.
d. Contract with Government Plus Synthetic, with an open
maturity and an average interest rate of 6.77%.
<PAGE>
e. Contract with Ohio National with a guaranteed interest rate
of 6.25% through July 16, 2003.
f. Contract with Sunamerica Life Synthetic with a guaranteed
interest rate of 6.053% through July 27, 2003.
g. Contract with Connecticut General Life with a guaranteed
interest rate of 5.35% through September 30, 2003.
h. Contract with General American Synthetic with an open
maturity and an average interest rate of 5.63%.
i. Marshall Money Market Fund.
j. The M&I Stable Principal Fund is primarily invested in
traditional and synthetic investment contracts, money
market securities, and registered first-tier money market
mutual funds.
Balanced Fund - Assets are invested in shares of the Vanguard
Wellington Fund, Inc., a mutual fund which invests in a
diversified portfolio of 60%-70% common stocks and 30%-40%
bonds.
Growth Fund - Assets are invested in shares of the Fidelity
Magellan Fund, Inc., a mutual fund which invests in common
stock and securities of domestic, foreign, and multinational
issuers.
International Equity Fund - Assets are invested in shares of
the Templeton Foreign Fund, Inc., a mutual fund which invests
in companies and governments outside of the United States.
Aggressive Equity Fund - Assets are invested in shares of the
Franklin Balance Sheet Investment Fund, Inc., a mutual fund
which invests in stock and securities of companies that it
judges to be undervalued.
Index Equity - Assets are invested in shares of Vanguard Index
Trust 500 Fund, Inc., a mutual fund which invests in S&P 500
companies.
Loan Fund - Loans made to participants as described below.
Participants elect their desired investment program upon joining
the Plan. Participants may elect to change the investment
direction of their existing account balances and their future
contributions daily.
<PAGE>
Vesting
Participants are immediately vested in the portion of their Plan
account related to participant contributions, Company matching
contributions, and earnings thereon. Participants are vested in
the Company profit-sharing portion of their account after either
five years of service, attaining age 65, or death while an
employee.
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, 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) 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.
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 investments 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.
<PAGE>
2. Summary of Significant Accounting Policies
Investment Valuation
All investments with the exception of guaranteed investment
contracts are carried at fair value. Fair value is the last
reported sales price on the last business day of the month for
securities traded on a national securities exchange. Fair value
for shares of master trust funds, mutual funds, the M&I Stable
Principal Fund, and the LaSalle National Trust, N.A. Income Plus
Fund are carried at fair value which is the net asset value of
those shares, as determined by the respective funds. Loans to
participants are valued at cost which approximates fair value.
Guaranteed investment contracts are carried at contract 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
Contributions from participants are recorded monthly. Matching
contributions by the Company are made monthly based on the minimum
contribution percentage required by the Plan. Any profit-sharing
contributions by the Company are accrued when approved by its Board
of Directors.
Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires the Plan
administrator to make estimates and assumptions that affect the
amounts reported in the financial statements and accompanying
notes. Actual results could differ from those estimates.
3. Investment in Master Trust
Assets of the Bond Fund, the Company Stock Fund, and the Fixed
Income Fund are invested in shares of IMC Global Operations Inc.
pooled funds shared by other IMC Global Operations Inc. 401(k)
plans. The Plan held a 100%, 99.1%, and 98.2% interest,
respectively, in the IMC Global Bond Fund, the IMC Global Stock
Fund, and the IMC Global Fixed Income Fund at December 31, 1998
(100%, 100%, and 99.2%, respectively, at December 31, 1997).
The equitable shares in the pooled shares of a participating plan
are proportionate to the fair market value of the assets allocable
to such participating plan.
<PAGE>
The assets of the pooled funds as of December 31, 1998, were as
follows:
</TABLE>
<TABLE>
<CAPTION>
IMC Global
IMC Global IMC Global Fixed
Bond Fund Stock Fund Income Fund
------------------------------------
<S> <C> <C> <C>
Bond Fund of America $3,158,380 $ - $ -
IMC Global Inc. common stock - 19,945,932 -
M&I Stable Principal Fund - - 25,300,570
Guaranteed Investment Contracts:
CDC Investment Management Corp. - - 6,028,752
Rabobank Alternative - - 3,135,194
National Westminster Bank Group - - 2,729,535
Government Plus Synthetic - - 5,690,822
Ohio National - - 3,084,891
Sunamerica Life Synthetic - - 3,501,766
Connecticut General Life - - 2,532,191
General American Synthetic - - 2,529,671
Marshall Money Market Fund - 576,545 519,225
Pending transactions 44,397 - -
Accrued interest and dividends 254 3,147 129,668
------------------------------------
Net assets $3,203,031 $20,525,624 $55,182,285
====================================
</TABLE>
The assets of the pooled funds as of December 31, 1997, were as
follows:
<TABLE>
<CAPTION>
IMC Global
IMC Global IMC Global Fixed
Bond Fund Stock Fund Income Fund
------------------------------------
<S> <C> <C> <C>
Bond Fund of America $2,303,481 $ - $ -
IMC Global Inc. common stock - 17,877,734 -
LaSalle National Trust, N.A.
Income Plus Fund - - 11,108,430
M&I Stable Principal Fund - - 6,350,000
Guaranteed Investment Contracts:
Commonwealth Life Insurance Company - - 7,663,894
CDC Investment Management Corp. - - 6,028,752
National Westminster Bank Group - - 5,021,562
Rabobank Alternative - - 4,210,872
Marshall Money Market Fund 52,245 328,941 413,494
Pending transactions - 169,783 (8,960)
Accrued interest and dividends 342 3,147 74,718
------------------------------------
Net assets $2,356,068 $18,379,605 $40,862,762
=================================
</TABLE>
<PAGE>
Changes in the pooled balances for the year ended December 31,
1998, are summarized as follows:
<TABLE>
<CAPTION>
IMC Global
IMC Global IMC Global Fixed
Bond Fund Stock Fund Income Fund
------------------------------------
<S> <C> <C> <C>
Additions
Interest and dividend income $ 212,110 $ 234,583 $ 3,132,655
Net realized and unrealized
appreciation (depreciation)
in fair value of investments (59,650) (5,948,352) 321,606
Contributions and transfers
from other plans 4,335,440 31,572,913 58,592,605
------------------------------------
4,487,900 25,859,144 62,046,866
Deductions
Benefits paid 3,640,937 23,713,125 47,702,409
Investment expenses - - 24,934
------------------------------------
3,640,937 23,713,125 47,727,343
------------------------------------
Net increase in assets 846,963 2,146,019 14,319,523
Net assets, beginning of year 2,356,068 18,379,605 40,862,762
------------------------------------
Net assets, end of year $3,203,031 $20,525,624 $55,182,285
====================================
</TABLE>
Changes in the pooled balances during the six-month period from
July 1 through December 31, 1997, are summarized as follows:
<TABLE>
<CAPTION>
IMC Global
IMC Global IMC Global Fixed
Bond Fund Stock Fund Income Fund
------------------------------------
<S> <C> <C> <C>
Additions
Interest and dividend income $ 78,556 $ 90,025 $ 1,435,343
Net realized and unrealized
appreciation (depreciation)
in fair value of investments 27,576 (192,978) -
Contributions and transfers from
other plans 1,096,004 21,820,601 16,311,567
------------------------------------
1,202,136 21,717,648 17,746,910
<PAGE>
Deductions
Benefits paid 1,061,876 15,831,603 20,574,625
Investment expenses - - 55,306
------------------------------------
1,061,876 15,831,603 20,629,931
------------------------------------
Net increase (decrease) in assets 140,260 5,886,045 (2,883,021)
Net assets, beginning of period 2,215,808 12,493,560 43,745,783
------------------------------------
Net assets, end of period $2,356,068 $18,379,605 $40,862,762
====================================
</TABLE>
4. Significant Investments
Individual investments that represent 5% or more of net assets
available for benefits at December 31, 1998 and 1997, were as
follows:
<TABLE>
<CAPTION>
December 31
1998 1997
------------------------
<S> <C> <C>
Mutual funds:
Fidelity Equity-Income Fund, Inc. $19,847,478 $21,946,755
Vanguard Wellington Fund, Inc. 16,634,658 6,136,060
Fidelity Magellan Fund, Inc. 12,662,803 6,816,865
Vanguard Index Trust 500 Fund, Inc. 30,271,745 -
Franklin Balance Sheet Investment
Fund, Inc. 11,497,429 -
</TABLE>
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.
The Plan has been amended since receiving the determination letter.
However, the Plan administrator and the Plan's counsel believe that
the Plan is designed and is currently being operated in compliance
with the applicable requirements of the IRC.
6. Year 2000 Issue (Unaudited)
The Company has determined that it will be necessary to take
certain steps in order to ensure that the Plan's information
systems are prepared to handle year 2000 dates. The Company is
taking a two-phase approach. The first phase addresses internal
systems that must be modified or replaced to function properly.
Both internal and external resources are being utilized to replace
or modify existing software applications, and test the software and
equipment for the year 2000 modifications. The Company anticipates
substantially completing this phase of the project by mid-1999.
Costs associated with modifying software and equipment are not
estimated to be significant and will be paid by the Company.
<PAGE>
For the second phase of the project, Plan management established
formal communications with its third-party service providers to
determine that they have developed plans to address their own year
2000 problems as they relate to the Plan's operations. All third-
party service providers have indicated that they will be year 2000
compliant by mid-1999. If modification of data processing systems
of either the Plan, the Company, or its service providers is not
completed timely, the year 2000 problem could have a material
impact on the operations of the Plan. Plan management has not
developed a contingency plan, because they are confident that all
systems will be year 2000 ready.
<PAGE>
Supplemental Schedules
<PAGE>
<TABLE>
EIN 36-3513204
Plan #004
IMC Global Operations Inc. Profit Sharing and Savings Plan
Line 27a - Schedule of Assets Held for Investment Purposes
December 31, 1998
<CAPTION>
Number of Current
Identity of Issuer Description Shares Cost Value
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Marshall and Ilsley Trust Company* Fidelity Equity-Income Fund, Inc. 357,290 $17,283,892 $19,847,478
Vanguard Wellington Fund, Inc. 566,769 16,725,409 16,634,658
Fidelity Magellan Fund, Inc. 104,007 10,733,039 12,662,803
Templeton Foreign Fund Inc. 322,892 3,112,493 2,709,064
Vanguard Index Trust 500 Fund, Inc. 265,658 25,349,790 30,271,745
Franklin Balance Sheet Investment
Fund, Inc. 363,843 12,270,593 11,497,429
Loans to participants (7.125%-10.5%) - 5,354,133
------------------------
$85,475,216 $98,977,310
========================
*Indicates party in interest to the Plan.
</TABLE
<PAGE>
</TABLE>
<TABLE>
EIN: 36-3513204
Plan #004
IMC Global Operations Inc. Profit Sharing and Savings Plan
Line 27b - Schedule of Loans or Fixed Income Obligations
Year ended December 31, 1998
<CAPTION>
Identity
of Party Principal and
(Social Original Interest Paid Collateral
Security Loan During the Loan Issue Maturity Default Interest --------------------------------
Number) Amount Year Date Date Date Rate Type Value
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
257-92-8210 $ 9,959 $ 283 12/15/97 4/15/27 9/17/98 9.50% Participant Account $ 22,648
317-52-2099 11,000 - 11/30/97 11/30/02 9/17/98 9.50 Participant Account 23,421
589-46-8636 800 32 6/13/97 6/15/02 9/17/98 8.50 Participant Account 3,173
267-86-5301 1,000 22 3/13/98 3/15/00 9/17/98 8.50 Participant Account 7,323
544-64-8949 17,695 2,501 12/15/97 3/31/02 10/23/98 9.25 Participant Account 126,806
558-73-2587 9,768 1,318 12/15/97 1/15/02 10/23/98 9.25 Participant Account 33,230
265-26-3934 4,462 - 12/15/97 7/31/98 9/17/98 7.00 Participant Account 32,403
281-60-0273 1,734 - 12/15/97 5/15/00 11/10/98 9.50 Participant Account 4,821
253-96-7968 2,124 972 12/24/97 9/22/99 11/11/98 6.75 Participant Account 23,787
290-68-0884 1,974 474 12/24/97 11/10/99 10/23/98 9.25 Participant Account 23,399
253-68-3605 6,923 594 12/15/97 1/15/02 10/23/98 9.25 Participant Account 19,652
237-60-9120 3,801 688 12/15/97 8/31/99 9/17/98 6.75 Participant Account 88,743
###-##-####
Loan 1 14,538 2,426 12/15/97 12/31/00 10/23/98 6.75 Participant Account 98,503
Loan 2 30,000 1,536 3/13/98 3/15/03 10/23/98 8.50 Participant Account 107,755
260-62-1566 266 - 12/15/97 3/31/98 7/24/98 7.00 Participant Account 31,342
279-64-7795 2,350 638 12/15/97 12/15/00 12/21/98 9.50 Participant Account 7,008
325-46-7831 6,500 132 5/15/96 5/15/01 9/17/98 8.25 Participant Account 183,663
341-34-5944 13,195 - 12/15/97 3/31/02 7/24/98 9.25 Participant Account 90,380
355-56-0892 2,000 81 11/15/96 11/15/01 9/17/98 8.25 Participant Account 7,448
261-54-8635 25,000 5,105 8/15/97 8/15/99 9/17/98 8.50 Participant Account 243,541
549-08-1135 4,056 1,335 12/15/97 5/31/99 10/23/98 6.25 Participant Account 64,382
263-64-5156 2,282 - 12/15/97 12/31/98 7/24/98 7.50 Participant Account 47,798
348-40-0691 16,000 1,962 10/15/96 10/15/00 10/23/98 8.25 Participant Account 64,669
257-84-9326 2,000 - 11/30/97 11/30/02 9/15/98 9.50 Participant Account 9,863
262-41-3672 12,000 629 12/15/97 12/15/02 10/23/98 9.50 Participant Account 25,764
347-58-0010 10,631 2,032 12/15/97 3/31/01 10/23/98 9.25 Participant Account 58,357
</TABLE>
<PAGE>
<TABLE>
EIN 36-3513204
Plan #004
IMC Global Operations Inc. Profit Sharing and Savings Plan
Line 27d - Schedule of Reportable Transactions
Year ended December 31, 1998
<CAPTION>
Current Value
Cost Asset on
Purchase Selling of Transaction Net
Identity of Party Involved Description of Assets Price Price Assets Date Gain
- -----------------------------------------------------------------------------------------------------------------------------------
Category (iii) - Series of transactions in excess of 5% of net assets available for benefits
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Marshall and Ilsley Trust Company Fidelity Equity-Income Fund, Inc. $12,908,770 $ - $12,908,770 $12,908,770 $ -
- 17,600,768 14,148,290 17,600,768 3,452,478
Fidelity Magellan Fund, Inc. 13,220,088 - 13,220,088 13,220,088 -
- 11,139,292 9,796,168 11,139,292 1,343,124
Vanguard Wellington Fund, Inc. 9,597,599 - 9,597,599 9,597,599 -
- 10,238,763 8,494,404 10,238,763 1,744,359
Vanguard Index Trust 500
Fund, Inc. 17,817,926 - 17,817,926 17,817,926 -
- 16,353,166 15,003,394 16,353,166 1,349,772
Franklin Balance Sheet Investment
Fund, Inc. 5,794,222 - 5,794,222 5,794,222 -
- 6,732,188 6,228,601 6,732,188 503,587
There were no reportable category (i), (ii), or (iv) transactions.
</TABLE>
<PAGE>
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.
IMC Global Operations, Inc.
Profit Sharing and Savings Plan
(Formerly the Investment Plan for Salaried Employees
of IMC Global Operations Inc.)
/s/ J. Bradford James
-------------------------------------------
J. Bradford James
Chairman of the Employee Benefits Committee
Date: June 29, 1999
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
- ---------------------------------------------------------------------
/s/ J. Bradford James Senior Vice President June 29, 1999
- ------------------------- and Chief Financial
J. Bradford James Officer
/s/ B. Russell Lockridge Senior Vice President, June 29, 1999
- ------------------------- Human Resources
B. Russell Lockridge
/s/ E. Paul Dunn Vice President and June 29, 1999
- ------------------------- Treasurer
E. Paul Dunn
/s/ Robert E. Fowler, Jr. Chairman and June 29, 1999
- ------------------------- Chief Executive Officer
Robert E. Fowler, Jr.
<PAGE>
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 IMC Global Profit
Sharing and Savings Plan (formerly the Investment Plan for Salaried
Employees of IMC Global Operations Inc.) of our report dated May 12,
1999, with respect to the financial statement and supplemental
schedules of the IMC Global Profit Sharing and Savings Plan included in
this Annual Report (Form 11-K) for the year ended December 31, 1998.
Chicago, Illinois Ernst & Young, LLP
June 25, 1999
