- ---------------------------------------------------------------------
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:
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
- ---------------------------------------------------------------------
<PAGE>
Salary Reduction Plan for Hourly Employees
of IMC Global Operations Inc. Represented By
United Steelworkers of America at Carlsbad, New Mexico
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 Assets Available for Benefits, With Fund Information 2
Statements of Changes in Assets Available for Benefits, With Fund
Information 4
Notes to Financial Statements 6
Supplemental Schedules
Line 27a - Schedule of Assets Held for Investment Purposes 16
Line 27b - Schedule of Loans or Fixed Income Obligations 17
Line 27d - Schedule of Reportable Transactions 18
<PAGE>
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 December 31, 1998 and 1997, and the related statements of changes in
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 assets available for benefits of the Plan at
December 31, 1998 and 1997, and the changes in its 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. These supplemental schedules are the
responsibility of the Plan's management. 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.
Chicago, Illinois Ernst & Young, LLP
May 7, 1999
<PAGE>
<TABLE>
EIN 36-3513204
Plan #019
Salary Reduction Plan for Hourly Employees
of IMC Global Operations Inc. Represented By
United Steelworkers of America at Carlsbad, New Mexico
Statement of Assets Available for Benefits, With Fund Information
December 31, 1998
<CAPTION>
Fund Information
------------------------------------------------------------------------------
Company Fixed Bond
Stock Income Balanced Equity Index Growth Loan
Total Fund Fund Fund Fund Fund Fund Fund
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair value:
Master trust funds:
Interest in IMC Global Stock Fund $ 173,633 $173,633 $ - $ - $ - $ - $ - $ -
Interest in IMC Global Fixed
Income Fund 300,220 - 300,220 - - - - -
Mutual funds:
Vanguard Wellington Fund, Inc. 308,562 - - 308,562 - - - -
Fidelity Equity-Income Fund, Inc. 611,011 - - - 611,011 - - -
Vanguard Fixed Income Fund 1,465,329 - - - - 1,465,329 - -
Fidelity Magellan Fund, Inc. 173,028 - - - - - 173,028 -
Loans to participants 116,982 - - - - - - 116,982
------------------------------------------------------------------------------------------
Total investments 3,148,765 173,633 300,220 308,562 611,011 1,465,329 173,028 116,982
Receivables:
Participant contributions 15,247 900 2,198 2,549 3,860 4,461 1,279 -
Company contributions 4,005 197 636 615 963 1,297 297 -
Accrued interest and dividends 7,031 - - - - 7,031 - -
------------------------------------------------------------------------------------------
Total receivables 26,283 1,097 2,834 3,164 4,823 12,789 1,576 -
------------------------------------------------------------------------------------------
Assets available for benefits $3,175,048 $174,730 $303,054 $311,726 $615,834 $1,478,118 $174,604 $116,982
==========================================================================================
See accompanying notes.
</TABLE
<PAGE>
</TABLE>
<TABLE>
EIN 36-3513204
Plan #019
Salary Reduction Plan for Hourly Employees
of IMC Global Operations Inc. Represented By
United Steelworkers of America at Carlsbad, New Mexico
Statement of Assets Available for Benefits, With Fund Information
December 31, 1997
<CAPTION>
Fund Information
-----------------------------------------------------------------------------
Fixed Bond
Income Balanced Equity Index Loan
Total Fund Fund Fund Fund Fund
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investments, at fair value:
Mutual funds:
Vanguard Wellington Fund, Inc. $ 291,802 $ - $291,802 $ - $ - $ -
Fidelity Equity-Income Fund, Inc. 588,425 - - 588,425 - -
Vanguard Fixed Income Fund 1,387,699 - - - 1,387,699 -
Master trust fund:
Interest in IMC Global Fixed Fund 287,221 287,221 - - - -
Loans to participants 143,280 - - - - 143,280
-----------------------------------------------------------------------------
Total investments 2,698,427 287,221 291,802 588,425 1,387,699 143,280
Accrued interest and dividends 7,081 - - - 7,081 -
-----------------------------------------------------------------------------
Assets available for benefits $2,705,508 $287,221 $291,802 $588,425 $1,394,780 $143,280
=============================================================================
See accompanying notes.
</TABLE
<PAGE>
</TABLE>
<TABLE>
EIN 36-3513204
Plan #019
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
Year ended December 31, 1998
<CAPTION>
Fund Information
---------------------------------------------------------------------
Company Fixed Bond
Stock Income Balanced Equity Index Growth Loan
Total Fund Fund Fund Fund Fund Fund Fund
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Interest and dividends $115,927 $ - $ - $ 10,999 $ 9,263 $ 83,974 $ 729 $ 10,962
Net realized and unrealized
appreciation in fair value
of investments 163,073 - - 22,381 55,195 61,944 23,553 -
Income (loss) from master
trust funds 650 (16,972) 17,622 - - - - -
----------------------------------------------------------------------------------
Total investment income 279,650 (16,972) 17,622 33,380 64,458 145,918 24,282 10,962
Contributions:
Participants 383,369 15,107 56,692 61,275 114,801 114,436 21,058 -
Company 101,370 3,749 16,581 15,310 27,447 33,245 5,038 -
----------------------------------------------------------------------------------
Total contributions 484,739 18,856 73,273 76,585 142,248 147,681 26,096 -
Transfers to other plans (43,928) - (12,754) (16,494) (9,052) - - (5,628)
Distributions (250,921) (376) (89,623) (10,873) (18,350) (128,163) - (3,536)
Transfers of investment direction - 173,222 27,315 (62,674) (151,895) (82,098) 124,226 (28,096)
----------------------------------------------------------------------------------
<PAGE>
Net increase (decrease) in assets
available for benefits 469,540 174,730 15,833 19,924 27,409 83,338 174,604 (26,298)
Assets available for benefits -
Beginning of year 2,705,508 - 287,221 291,802 588,425 1,394,780 - 143,280
----------------------------------------------------------------------------------
Assets available for benefits -
End of year $3,175,048 $174,730 $303,054 $311,726 $615,834 $1,478,118 $174,604 $116,982
==================================================================================
See accompanying notes.
</TABLE
<PAGE>
</TABLE>
<TABLE>
EIN 36-3513204
Plan #019
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
Six months ended December 31, 1997
<CAPTION>
Fixed Bond
Income Balanced Equity Index Loan
Total Fund Fund Fund Fund Fund
------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Interest and dividends $ 59,101 $ - $ 6,599 $ 4,371 $ 41,020 $ 7,111
Net realized and unrealized
appreciation in fair value 107,229 - 19,200 44,759 43,270 -
Income from master trust fund 9,268 9,268 - - - -
-------------------------------------------------------------------
Total investment income 175,598 9,268 25,799 49,130 84,290 7,111
Contributions:
Participants 199,172 40,068 27,739 68,808 62,557 -
Company 43,351 6,620 6,830 13,146 16,755 -
-------------------------------------------------------------------
Total contributions 242,523 46,688 34,569 81,954 79,312 -
Transfers to other plans (4,647) - - - (4,647) -
Distributions (115,717) (2,062) (67,459) (29,569) (16,066) (561)
Transfers of investment direction - (43,478) 34,535 59,097 (51,689) 1,535
-------------------------------------------------------------------
Net increase in assets
available for benefits 297,757 10,416 27,444 160,612 91,200 8,085
Assets available for benefits -
Beginning of period 2,407,751 276,805 264,358 427,813 1,303,580 135,195
-------------------------------------------------------------------
Assets available for benefits -
End of period $2,705,508 $287,221 $291,802 $588,425 $1,394,780 $143,280
===================================================================
See accompanying notes.
</TABLE
<PAGE>
EIN 36-3513204
Plan #019
Salary Reduction Plan for Hourly Employees
of IMC Global Operations Inc. Represented By
United Steelworkers of America at Carlsbad, New Mexico
Notes to Financial Statements
Year ended December 31, 1998 and
six months ended December 31, 1997
1. Description of the Plan
The following description of the Salary Reduction Plan for Hourly
Employees of IMC Global Operations Inc. Represented by United
Steelworkers of America at Carlsbad, New Mexico (the Plan) provides
only general information. Participants should refer to the Plan
document for a more complete description of the Plan's provisions.
General
The Plan was established on July 1, 1983, and was amended and
restated on January 1, 1998. 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 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 has 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.
Contributions
The Plan is funded by contributions, known as salary reduction
contributions, from participants in the form of payroll deductions
of $5 to $346 each pay period, but not to exceed 25% of the
participant's compensation within the meaning of section 415 of the
Internal Revenue Code (the IRC). The Plan provides a qualified
cash and deferred arrangement within the meaning of section 401(k)
<PAGE>
of the IRC; such contributions were subject to the calendar year
maximum of $10,000 in 1998 and $9,500 in 1997. Effective July 1,
1997, the Company contributes an amount equal to 35% of a
participant's eligible contributions, up to 6% of a participant's
base monthly salary. With the consent of the Plan administrator,
amounts may be rolled over from other qualified plans.
Participant Accounts
Separate accounts are maintained for each participant. Each
participant's account balance is adjusted for contributions,
withdrawals, if any, interest, dividends, and net realized and
unrealized gains or losses daily.
Administrative Expenses
Certain administrative expenses of the Plan are borne by the
Company.
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:
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.
<PAGE>
d. Contract with Government Plus Synthetic with an open maturity
and average interest rate of 6.77%.
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.
i. Marshall Money Market Fund
h. Contract with General American Synthetic with an open maturity
and an average interest rate of 5.63%.
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.
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 Index Fund - Assets are invested 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.
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.
Loan Fund - Loans made to participants as described below.
<PAGE>
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.
Vesting
Participants are immediately and nonforfeitably vested in their
accounts.
Withdrawals
Participants may withdraw their interest in the Plan upon
termination of employment. Under certain conditions of financial
hardship, participants may withdraw funds, subject to prior
approval of the Employee Benefits Committee, but their
participation in the Plan will be suspended for at least one year.
Full withdrawals are available after age 59 1/2 or in the event of
total and permanent disability.
Deferred Distributions
Participants who terminate their employment and have an account
balance in excess of $5,000 may elect (at any time prior to age 65)
to defer receipt of distribution until no later than their 70th
birthday.
Loans to Participants
Participants in the Plan may be granted loans subject to certain
terms and maximum dollar or Plan account balance limits, as defined
by the Plan. The amount of any such loan is borrowed from the
account of the participant to whom the loan was made, and such
account does not share in the allocation of income, gains, and
losses of the investment funds to the extent of the outstanding
balance of such loan. Principal repayments, which are over one to
five years for general purpose loans and over one to ten years for
residential loans, and related interest income are credited to the
borrowing participant's account. Loan payments are made by weekly
payroll deductions. Each loan bears interest at the prevailing
rate for loans of similar risk, date of maturity, and date of
grant.
<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 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 IMC Global Company Stock Fund the IMC Global Fixed
Income Fund, the LaSalle National Trust, N.A. Income Plus Fund, and
the M&I Stable Principal 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.
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
Participant contributions are recorded each pay period as withheld
by the Company. Contributions by the Company are made monthly
based on the minimum contribution required by the Plan.
Participant Withdrawals
Withdrawals are recorded when payments are made to participants.
Withdrawals requested but not paid are presented in Department of
Labor Form 5500 (Annual Return/Report of Employee Benefit Plan) as
liabilities. There were no unpaid withdrawals at December 31, 1997
or 1998.
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.
<PAGE>
3. Investment in Master Trusts
Assets of the Company Stock Fund and the Fixed Income Fund are
invested in shares of the IMC-Global pooled funds shared by other
IMC Global Operations Inc. 401(k) plans. The Plan held a .8% and
.5% interest, respectively, in the IMC-Global Stock Fund and the
IMC-Global Fixed Income Fund at December 31, 1998 (0% and .8%,
respectively, at December 31, 1997).
The equitable shares in the pooled funds of a participating plan
are proportionate to the fair market value of the assets allocable
to such participating plan.
The assets of pooled funds as of December 31, 1998, were as
follows:
</TABLE>
<TABLE>
<CAPTION>
IMC Global
IMC Global Fixed Income
Stock Fund Fund
----------------------------
<S> <C> <C>
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
Accrued interest and dividends 3,147 129,668
---------------------------
Net assets $20,525,624 $55,182,285
===========================
</TABLE>
<PAGE>
The assets of the pooled funds as of December 31, 1997, were as
follows:
<TABLE>
<CAPTION>
IMC Global
IMC Global Fixed Income
Stock Fund Fund
--------------------------
<S> <C> <C>
IMC Global Inc. common stock $17,877,734 $ -
M&I Stable Principal Fund - 6,350,000
LaSalle National Trust, N.A. Income Plus Fund 11,108,430
Guaranteed Investment Contracts:
Commonwealth Life Insurance Company 7,663,894
CDC Investment Management Corp. - 6,028,752
Rabobank Alternative - 4,210,872
National Westminster Bank Group - 5,021,562
Marshall Money Market Fund 328,941 413,494
Pending transactions 169,783 (8,960)
Accrued interest and dividends 3,147 74,718
-------------------------
Net assets $18,379,605 $40,862,762
=========================
</TABLE>
Changes in the pool balances for the year ended December 31, 1998,
are summarized as follows:
<TABLE>
<CAPTION>
IMC Global
IMC Global Fixed Income
Stock Fund Fund
-------------------------
<S> <C> <C>
Additions
Interest and dividend income $ 234,583 $ 3,132,655
Net realized and unrealized
appreciation (depreciation) in
fair value of investments (5,948,352) 321,606
Contributions and transfers
from other plans 31,572,913 58,592,605
------------------------
25,859,144 62,046,866
<PAGE>
Deductions
Benefits paid 23,713,125 47,702,409
Investment expenses - 24,934
------------------------
23,713,125 47,727,343
------------------------
Net increase in assets 2,146,019 14,319,523
Net assets, beginning of year 18,379,605 40,862,762
------------------------
Net assets, end of year $20,525,624 $55,182,285
========================
</TABLE>
Changes in the pooled balances for the six-month period from July 1
through December 31, 1997, are summarized as follows:
<TABLE>
<CAPTION>
IMC-Global
IMC-Global Fixed Income
Stock Fund Fund
--------------------------
<S> <C> <C>
Additions
Interest and dividend income $ 90,025 $ 1,435,343
Net realized and unrealized
depreciation in fair value of
investments (192,978) -
Contributions and transfers from
other plans 21,820,601 16,311,567
-------------------------
21,717,648 17,746,910
Deductions
Benefits paid 15,831,603 20,574,625
Investment expenses - 55,306
-------------------------
15,831,603 20,629,931
-------------------------
Net increase (decrease) in assets 5,886,045 (2,883,021)
Net assets, beginning of period 12,493,560 43,745,783
-------------------------
Net assets, end of period $18,379,605 $40,862,762
=========================
</TABLE>
<PAGE>
4. Significant Investments
Investments that represent 5% or more of assets available for
benefits at December 31, 1998 and December 31, 1997, were as
follows:
<TABLE>
<CAPTION>
December 31
1998 1997
-------------------------
<S> <C> <C>
Vanguard Wellington Fund, Inc. $ 308,562 $ 291,802
Fidelity Equity-Income Fund, Inc. 611,011 588,425
Vanguard Fixed Income Fund 1,465,329 1,387,699
Fidelity Magellan Fund, Inc. 173,028 -
Loans to participants - 143,280
</TABLE>
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.
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 #019
Salary Reduction Plan for Hourly Employees of IMC Global Operations Inc.
Represented By United Steelworkers of America at Carlsbad, New Mexico
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* Vanguard Wellington Fund, Inc. 10,513 $ 297,539 $ 308,562
Fidelity Equity-Income Fund, Inc. 10,999 528,397 611,011
Vanguard Fixed Income Fund 131,538 1,380,646 1,465,329
Fidelity Magellan Fund, Inc. 1,432 153,195 173,028
Loans to participants (7.125%-10.5%) - - 116,982
----------------------
$2,359,777 $2,674,912
======================
*Indicates party in interest to the Plan.
</TABLE>
<PAGE>
<TABLE>
EIN 36-3513204
Plan #019
Salary Reduction Plan for Hourly Employees of IMC Global Operations Inc.
Represented By United Steelworkers of America at Carlsbad, New Mexico
Line 27b - Schedule of Loans or Fixed Income Obligations
Year ended December 31, 1998
<CAPTION>
Principal
Identity of and
Party Interest
(Social Original Paid Collateral
Security Loan During the Loan Maturity Default Interest ----------------------------
Number) Amount Year Issue Date Date Date Rate Type Value
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
585-92-8503 $ 900 $ - 12/3/97 12/1/99 12/21/98 8.50% Participant Account $1,853
585-94-7855 2,665 557 3/31/95 2/26/00 12/21/98 10.00 Participant Account 7,179
</TABLE>
<PAGE>
<TABLE>
EIN 36-3513204
Plan #019
Salary Reduction Plan for Hourly Employees of IMC Global Operations Inc.
Represented By United Steelworkers of America at Carlsbad, New Mexico
Line 27d - Schedule of Reportable Transactions
Year ended December 31, 1998
<CAPTION>
Current
Value of
Asset on
Purchase Selling Cost Transaction Net
Identity of Party Involved Description of Assets Price Price of Asset Date Gain
- ---------------------------------------------------------------------------------------------------------------------
Category (iii) - Series of securities transactions in excess of 5% of plan assets
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Marshall and Ilsley Trust Company Vanguard Wellington Fund, Inc. $149,676 $ - $149,676 $149,676 $ -
- 138,804 104,606 138,804 34,198
Fidelity Equity-Income Fund, Inc. 246,788 - 246,788 246,788 -
- 270,343 213,434 270,343 56,909
Vanguard Fixed Income Fund 287,323 - 287,323 287,323 -
- 271,637 260,469 271,637 11,168
Fidelity Magellan Fund, Inc. 192,027 - 192,027 192,027 -
- 42,553 38,832 42,553 3,721
There were no category (i), (ii), or (iv) reportable 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.
Salary Reduction Plan for Hourly Employees of
IMC Global Operations Inc. Represented by
United Steelworkers of America at Carlsbad, New Mexico
/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. 33-42074) pertaining to the Salary Reduction
Plan for Hourly Employees of IMC Global Operations Inc. Represented by
United Steelworkers of America at Carlsbad, New Mexico of our report
dated May 7, 1999, 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 December 31, 1998.
Chicago, Illinois Ernst & Young, LLP
June 25, 1999
