- ---------------------------------------------------------------------
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-AGRICO MP. INC.
PROFIT SHARING AND SAVINGS PLAN
(Formerly the Investment Plan for Salaried Employees
of IMC-Agrico MP, 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-Agrico MP, 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 19
<PAGE>
Report of Independent Auditors
Plan Administrator
IMC-Agrico MP, Inc. Profit Sharing and Savings Plan
We have audited the accompanying statements of net assets available for
benefits of the IMC-Agrico MP, 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. 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 7, 1999
<PAGE>
<TABLE>
EIN 36-3888539
Plan #101
IMC-Agrico MP, Inc. Profit Sharing and Savings Plan
Statement of Net Assets Available for Benefits, With Fund Information
December 31, 1998
<CAPTION>
Fund Information
-----------------------------------------------------------------------------------------------------------
Company Fixed International Aggressive Index
Equity Bond Stock Income Balanced Growth Equity Equity Equity Loan
Total Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets
Investments,
at fair value:
Master trust
funds:
Interest in
IMC-Agrico
Stock
Fund $ 8,216,850 $ - $ - $8,216,850 $ - $ - $ - $ - $ - $ - $ -
Interest
in
IMC-Agrico
Fixed Income
Fund 24,747,852 - - - 24,747,852 - - - - - -
Interest
in
IMC-Agrico
Bond
Fund 4,486,669 - 4,486,669 - - - - - - - -
Mutual funds:
Fidelity
Equity-
Income
Fund,
Inc. 30,060,508 30,060,508 - - - - - - - - -
Vanguard
Wellington
Fund,
Inc. 6,149,712 - - - - 6,149,712 - - - - -
<PAGE>
Fidelity
Magellan
Fund,
Inc. 11,253,966 - - - - - 11,253,966 - - - -
Templeton
Foreign
Fund,
Inc. 237,379 - - - - - - 237,379 - - -
Franklin
Balance
Sheet
Investment
Fund, Inc. 459,165 - - - - - - - 459,165 - -
Vanguard
Index
Trust 500
Fund,
Inc. 5,018,118 - - - - - - - - 5,018,118 -
Loans to
participants 4,955,634 - - - - - - - - - 4,955,634
---------------------------------------------------------------------------------------------------------------------
Total
investments 95,585,853 30,060,508 4,486,669 8,216,850 24,747,852 6,149,712 11,253,966 237,379 459,165 5,018,118 4,955,634
Receivables:
Participant
contrib. 98,872 26,788 4,328 12,470 19,130 11,427 15,796 451 1,611 6,871 -
Company
contrib. 2,368,099 112,828 16,986 91,725 1,657,560 42,070 201,240 11,344 28,669 205,677 -
---------------------------------------------------------------------------------------------------------------------
Total
receivables 2,466,971 139,616 21,314 104,195 1,676,690 53,497 217,036 11,795 30,280 212,548 -
---------------------------------------------------------------------------------------------------------------------
98,052,824 30,200,124 4,507,983 8,321,045 26,424,542 6,203,209 11,471,002 249,174 489,445 5,230,666 4,955,634
Due (to)
from brokers - 59,357 (4,395) 205,052 (277,456) - 17,472 - - (30) -
---------------------------------------------------------------------------------------------------------------------
Net assets
available
for
benefits $98,052,824 $30,259,481 $4,503,588 $8,526,097 $26,147,086 $6,203,209 $11,488,474 $249,174 $489,445 $5,230,636$4,955,634
=======================================================================================================================
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
EIN 36-3888539
Plan #101
IMC-Agrico MP, Inc. Profit Sharing and Savings Plan
Statement of Net Assets Available for Benefits, With Fund Information
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>
Assets
Investments, at fair value:
Master trust funds:
Interest in
IMC-Agrico
Stock Fund $ 5,517,170 $ - $ - $5,517,170 $ - $ - $ - $ - $ -
Interest in
IMC-Agrico
Fixed Income
Fund 12,927,153 - - - 12,927,153 - - - -
Interest in
IMC-Agrico Bond
Fund 2,375,506 - 2,375,506 - - - - - -
Mutual funds:
Fidelity Equity-
Income Fund,
Inc. 17,457,166 17,457,166 - - - - - - -
Vanguard
Wellington
Fund, Inc. 4,332,933 - - - - - 4,332,933 - -
Fidelity Magellan
Fund, Inc. 5,570,754 - - - - - - 5,570,754 -
Loans to
participants 2,150,636 - - - - - - - 2,150,636
--------------------------------------------------------------------------------------------------
Total investments 50,331,318 17,457,166 2,375,506 5,517,170 12,927,153 - 4,332,933 5,570,754 2,150,636
<PAGE>
Receivables:
Participant
contributions 102,510 35,220 4,179 10,330 19,238 2,662 12,632 18,249 -
Company
contributions 698,412 219,194 31,827 72,689 140,212 26,744 84,256 123,490 -
Accrued interest
and dividends 3,850 - - - - 3,850 - - -
---------------------------------------------------------------------------------------------------
Total receivables 804,772 254,414 36,006 83,019 159,450 33,256 96,888 141,739 -
---------------------------------------------------------------------------------------------------
51,136,090 17,711,580 2,411,512 5,600,189 13,086,603 33,256 4,429,821 5,712,493 2,150,636
Due (to) from
brokers (4,291) 214 - (430) (830,213) 825,922 216 - -
---------------------------------------------------------------------------------------------------
Net assets available
for benefits $51,131,799 $17,711,794 $2,411,512 $5,599,759 $12,256,390 $859,178 $4,430,037 $5,712,493 $2,150,636
===================================================================================================
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
EIN 36-3888539
Plan #101
IMC-Agrico MP, 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
divid. $ 1,218,335 $ 474,206 $ - $ - $ - $ 4,495
Net
appreciation
(depreciation)
in fair
value of
invest. 6,754,240 3,003,969 - - - (3,700)
Income (loss)
from master
trust
funds (615,339) - 235,344 (2,198,249) 1,347,566 -
-------------------------------------------------------------------
Total
investment
income 7,357,236 3,478,175 235,344 (2,198,249) 1,347,566 795
Contributions:
Partic. 5,067,772 1,738,485 255,605 413,415 1,027,110 (2,662)
Company 5,254,947 1,112,908 181,741 305,755 2,333,433 (26,744)
--------------------------------------------------------------------
Total
contrib. 10,322,719 2,851,393 437,346 719,170 3,360,543 (29,406)
Transfers
from
other
plans 33,370,424 13,909,671 1,837,967 533,852 10,024,196 -
Distrib. (4,129,354) (924,495) (228,790) (12,345) (2,242,842) -
Transfers
of investment
direction - (6,767,057) (189,791) 3,883,910 1,401,233 (830,567)
--------------------------------------------------------------------
<PAGE>
Fund Information
--------------------------------------------------------
Company Fixed Money
Equity Bond Stock Income Market
Total Fund Fund Fund Fund Fund
--------------------------------------------------------------------
Net increase
(decrease)
in net assets
available for
benefits 46,921,025 12,547,687 2,092,076 2,926,338 13,890,696 (859,178)
Net assets
available
for
benefits -
Beginning
of year 51,131,799 17,711,794 2,411,512 5,599,759 12,256,390 859,178
-------------------------------------------------------------------
Net assets
available
for
benefits -
End of
year $98,052,824 $30,259,481$4,503,588 $8,526,097 $26,147,086 $ -
==================================================================
<PAGE>
Fund Information
--------------------------------------------------------
International Aggressive Index
Balanced Growth Equity Equity Equity Loan
Fund Fund Fund Fund Fund Fund
-------------------------------------------------------------------
Investment income:
Interest and
div. $ 228,140 $ 58,078 $ 5,911 $ 9,120 $ 29,567 $408,818
Net
appreciation
(depreciation)
in fair
value of
invest. 495,987 2,512,970 (25,844) (10,330) 781,188 -
Income (loss)
from master
trust
funds - - - - - -
------------------------------------------------------------------
Total
investment
income 724,127 2,571,048 (19,933) (1,210) 810,755 408,818
Contributions:
Partic. 495,650 777,100 30,913 89,801 242,355 -
Company 290,270 626,788 28,879 73,032 328,885 -
------------------------------------------------------------------
Total
contrib. 785,920 1,403,888 59,792 162,833 571,240 -
Transfers
from
other
plans 1,929,756 2,461,261 - - - 2,673,721
Distrib. (211,891) (424,320) - (102) (10,948) (73,621)
Transfers
of investment
direction (1,454,740) (235,896) 209,315 327,924 3,859,589 (203,920)
-------------------------------------------------------------------
Net increase
(decrease)
in net assets
available for
benefits 1,773,172 5,775,981 249,174 489,445 5,230,636 2,804,998
<PAGE>
Fund Information
--------------------------------------------------------
International Aggressive Index
Balanced Growth Equity Equity Equity Loan
Fund Fund Fund Fund Fund Fund
-------------------------------------------------------------------
Net assets
available
for
benefits -
Beginning
of year 4,430,037 5,712,493 - - - 2,150,636
-------------------------------------------------------------------
Net assets
available
for
benefits -
End of
year $6,203,209 $11,488,474 $249,174 $489,445 $5,230,636 $4,955,634
===================================================================
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
EIN 36-3888539
Plan #101
IMC-Agrico MP, 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 $ 373,670 $ 141,344 $ - $ - $ - $ 20,995 $ 94,870 $ 27,635 $ 88,826
Income from
master trust
funds 592,404 - 109,868 81,830 400,706 - - - -
Net realized
and unrealized
appreciation
in fair value
of investments 2,172,642 1,564,380 - - - - 239,585 368,677 -
-------------------------------------------------------------------------------------------------------
Total investment
income 3,138,716 1,705,724 109,868 81,830 400,706 20,995 334,455 396,312 88,826
Contributions:
Participants 1,380,561 447,578 48,954 148,386 241,367 32,715 177,040 284,521 -
Company 841,358 264,874 37,848 88,960 166,806 30,708 101,762 150,400 -
--------------------------------------------------------------------------------------------------------
Total
contributions 2,221,919 712,452 86,802 237,346 408,173 63,423 278,802 434,921 -
Transfers (to)
from other plans (386,990) (318,945) 12,730 (4,923) (78,333) (6,784) 55,465 (3,350) (42,850)
Distributions (660,011) (175,774) (2,395) (14,394) (168,524) (2,513) (147,999) (121,705) (26,707)
<PAGE>
Transfers of
investment
direction - (380,465) (50,514) 1,587,623 (1,679,212) (385,728) 271,366 536,730 100,200
----------------------------------------------------------------------------------------------------------
Net increase
(decrease)
in net assets
available
for benefits 4,313,634 1,542,992 156,491 1,887,482 (1,117,190) (310,607) 792,089 1,242,908 119,469
Net assets
available
for benefits -
Beginning
of period 46,818,165 16,168,802 2,255,021 3,712,277 13,373,580 1,169,785 3,637,948 4,469,585 2,031,167
----------------------------------------------------------------------------------------------------------
Net assets
available
for benefits -
End of period $51,131,799 $17,711,794 $2,411,512 $5,599,759 $12,256,390 $ 859,178 $4,430,037 $5,712,493 $2,150,636
==========================================================================================================
See accompanying notes.
</TABLE>
<PAGE>
EIN 36-3888539
Plan #101
IMC-Agrico MP, 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-Agrico MP, Inc. was amended and restated and
renamed the IMC-Agrico MP, Inc. Profit Sharing and Savings Plan
(the Plan). Also on January 1, 1998, the Investment Plan for Non-
union Hourly Employees of IMC-Agrico MP, Inc. was 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 is a defined-contribution plan which was established on
July 1, 1993. Employees of IMC-Agrico MP, Inc. (the Company),
managing partner of IMC-Agrico Company and jointly owned by IMC
Global Operations Inc. and Phosphate Resource Partners, Limited
Partnership, 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.
<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 $2,274,483. That portion of the contribution applied to
the Company Stock Fund was in the form of cash.
Under certain circumstances, participants may rollover 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-Agrico Bond
Fund, a pooled bond fund shared only by other IMC-Agrico MP, 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-
Agrico Stock Fund, a pooled fund shared only by other IMC-Agrico
MP, Inc. 401(k) plans, which invests in the common stock of IMC
Global Inc.
Fixed Income Fund - Assets are invested in shares of IMC-Agrico
Fixed Income Fund, a pooled fund shared only by other IMC-Agrico
MP, Inc. 401(k) plans, as well as 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. GIC with CDC Investment Management Corp. with a guaranteed
interest rate of 7.5% through June 30, 2000.
b. GIC with Rabobank Alternative with a guaranteed interest rate
of 6.647% through March 15, 2001.
c. GIC with Sun America Life Company with a guaranteed interest
rate of 7.04% through May 29, 2002.
d. GIC with Government Plus Synthetic with an open maturity and
an average interest rate of 6.77%.
e. GIC with Ohio National with a guaranteed interest rate of
6.25% through July 16, 2003.
<PAGE>
f. GIC with Sunamerica Life Synthetic with a guaranteed interest
rate of 6.053% through July 27, 2003.
g. GIC with Connecticut General Life with a guaranteed interest
rate of 5.35% through October 30, 2003.
h. GIC 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.
Money Market Fund - Assets are invested in shares of the
Vanguard Money Market Reserves, Inc. - Prime Portfolio, a
mutual fund. This mutual fund 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 - 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.
<PAGE>
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.
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.
<PAGE>
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.
2. Summary of Significant Accounting Policies
Investment Valuation
All investments, with the exception of guaranteed investment
contracts, are carried at fair value. Fair value for shares of
master trust funds, mutual funds, the LaSalle National Trust, N.A.
Income Plus Fund, and M&I Stable Principal Fund 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.
<PAGE>
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, 1998
and 1997.
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-Agrico MP, Inc. pooled
funds shared by other IMC-Agrico MP, Inc. 401(k) plans. The Plan
held a 100%, 95.5%, and 87.1% interest, respectively, in the IMC-
Agrico Bond Fund, the IMC-Agrico Stock Fund, and the IMC-Agrico
Fixed Income Fund at December 31, 1998 (56.4%, 91.2%, and 51.4%,
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.
<PAGE>
The assets of the pooled funds as of December 31, 1998, were as
follows:
<TABLE>
<CAPTION>
IMC-Agrico
IMC-Agrico IMC-Agrico Fixed
Bond Fund Stock Fund Income Fund
----------------------------------
<S> <C> <C> <C>
Bond Fund of America $4,395,805 $ - $ -
IMC Global Inc. common stock - 8,405,762 -
M&I Stable Principal Fund - - 13,729,913
Guaranteed Investment Contracts:
CDC Investment Management Corp. - - 1,500,000
Rabobank Alternative - - 938,039
Sunamerica Life Capmac - - 3,343,745
Government Plus Synthetic - - 2,586,737
Ohio National - - 1,542,445
Sunamerica Life Synthetic - - 1,500,757
Connecticut General Life - - 1,519,315
General American Synthetic - - 1,517,803
Marshall Money Market Fund 86,098 104,275 145,405
Pending transactions - 89,751 -
Accrued interest and dividends 371 1,699 72,410
---------------------------------
Net assets $4,482,274 $8,601,487 $28,396,569
=================================
</TABLE>
<PAGE>
The assets of the pooled funds as of December 31, 1997, were as
follows:
<TABLE>
<CAPTION>
IMC-Agrico
IMC-Agrico IMC-Agrico Fixed
Bond Fund Stock Fund Income Fund
----------------------------------
<S> <C> <C> <C>
Bond Fund of America $4,109,791 $ - $ -
IMC Global Inc. common stock - 5,843,059 -
M&I Stable Principal Fund - - 1,900,000
LaSalle National Trust, N.A.
Income Plus Fund - - 15,370,663
Guaranteed Investment Contracts: - - -
Commonwealth Life Insurance
Company - - 1,915,973
CDC Investment Management Corp. - - 1,500,000
Rabobank Alternative - - 1,039,997
Sunamerica Life Capmac - - 3,123,827
Marshall Money Market Fund 100,694 206,121 236,330
Pending transactions - - (5,748)
Accrued interest and dividends 463 1,412 86,454
---------------------------------
Net assets $4,210,948 $6,050,592 $25,167,496
=================================
</TABLE>
<PAGE>
Changes in the pooled balances for the year ended December 31,
1998, are summarized as follows:
<TABLE>
<CAPTION>
IMC-Agrico
IMC-Agrico IMC-Agrico Fixed
Bond Fund Stock Fund Income Fund
----------------------------------------
<S> <C> <C> <C>
Interest and dividend
income $ 314,120 $ 97,003 $ 1,680,792
Net realized and
unrealized depreciation
in fair value of
investments (78,774) (2,297,412) -
Contributions and transfers
from other plans 2,921,167 19,496,739 24,287,771
----------------------------------------
3,156,513 17,296,330 25,968,563
Deductions
Benefits paid 2,885,187 14,679,071 22,707,640
Investment expenses - 66,363 31,850
----------------------------------------
2,885,187 14,745,434 22,739,490
----------------------------------------
Net increase in assets 271,326 2,550,896 3,229,073
Net assets, beginning
of year 4,210,948 6,050,591 25,167,496
----------------------------------------
Net assets, end of year $4,482,274 $8,601,487 $28,396,569
========================================
</TABLE>
<PAGE>
Changes in the pooled balances for the six-month period from July 1
through December 31, 1997, are summarized as follows:
<TABLE>
<CAPTION>
IMC-Agrico
IMC-Agrico IMC-Agrico Fixed
Bond Fund Stock Fund Income Fund
-----------------------------------------
<S> <C> <C> <C>
Additions
Interest and dividend
income $ 148,014 $ 28,754 $ 844,550
Net realized and
unrealized
appreciation in fair
value of investments 54,150 32,897 -
Contributions and
transfers from other
plans 1,017,532 7,068,104 6,273,118
----------------------------------------
1,219,696 7,129,755 7,117,668
Deductions
Benefits paid 729,815 4,979,069 8,037,667
Investment expenses 385,658 - 34,995
----------------------------------------
1,115,473 4,979,069 8,072,662
----------------------------------------
Net increase (decrease)
in assets 104,223 2,150,686 (954,994)
Net assets, beginning
of period 4,106,725 3,899,906 26,122,490
----------------------------------------
Net assets, end
of period $4,210,948 $6,050,592 $25,167,496
========================================
</TABLE>
<PAGE>
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. $30,060,508 $17,457,166
Vanguard Wellington Fund, Inc. 6,149,712 4,332,933
Fidelity Magellan Fund, Inc. 11,253,966 5,570,754
Vanguard Index Trust 500 Fund, Inc. 5,018,118 -
Loans to participants 4,955,634 -
</TABLE>
5. Federal Income Tax Status
The Internal Revenue Service ruled May 15, 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 36-3888539
Plan #101
IMC-Agrico MP, 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. 541,143 $25,386,848 30,060,508
Vanguard Wellington Fund, Inc. 209,539 6,051,056 6,149,712
Fidelity Magellan Fund, Inc. 93,147 9,275,316 11,253,966
Templeton Foreign Fund, Inc. 28,293 268,966 237,379
Franklin Balance Sheet Inv. Fund, Inc. 14,531 492,547 459,165
Vanguard Index Trust 500 Fund, Inc. 44,038 4,420,843 5,018,118
Loans to participants (7.125%-10.5%) - 4,955,634
------------------------
$45,895,576 $58,134,482
========================
*Indicates party in interest to the Plan.
</TABLE>
<PAGE>
<TABLE>
EIN 36-3888539
Plan #101
IMC-Agrico MP, Inc. Profit Sharing and Savings Plan
Line 27b - Schedule of Loans or Fixed Income Obligations
Year ended December 31, 1998
<CAPTION>
Principal and
Identity of Party Original Interest Paid Collateral
(Social 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>
439-50-0834 $10,000 $ 912 12/31/93 12/20/98 9/17/98 7.00% Participant Account $ 72,521
424-54-4921 5,000 - 10/31/94 10/15/99 7/24/98 8.75 Participant Account 15,331
###-##-####
Loan 1 8,800 - 12/31/94 12/19/99 7/24/98 8.75 Participant Account 19,020
Loan 3 5,300 - 9/5/97 8/30/02 7/24/98 8.50 Participant Account 20,384
264-60-0995 20,000 1,223 3/15/96 3/15/01 7/24/98 8.25 Participant Account 175,780
</TABLE
<PAGE>
</TABLE>
<TABLE>
EIN 36-3888539
Plan #101
IMC-Agrico MP, Inc. Profit Sharing and Savings Plan
Line 27d - Schedule of Reportable Transactions
Year ended December 31, 1998
<CAPTION>
Current Value
of Asset on
Purchase Selling Cost of Transaction Net
Identity of Party Involved Description of Assets Price Price Asset Date Gain
- ---------------------------------------------------------------------------------------------------------------------------------
Category (iii) transactions - 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. $13,603,014 $ - $13,603,014 $13,603,014 $ -
- 17,827,972 13,653,848 17,827,972 4,174,124
Vanguard Wellington Fund, Inc. 4,049,739 - 4,049,739 4,049,739 -
- 4,589,615 3,766,276 4,589,615 823,339
Fidelity Magellan Fund, Inc. 8,490,778 - 8,490,778 8,490,778 -
- 7,826,025 6,589,683 7,826,025 1,236,342
Franklin Balance Sheet Inc.
Fund. Inc. 1,947,987 - 1,947,987 1,947,987 -
- 1,578,292 1,555,240 1,578,292 23,052
Vanguard Index Trust 500 Fund, Inc. 8,903,235 - 8,903,235 8,903,235 -
- 4,972,637 4,788,724 4,972,637 183,913
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.
IMC-Agrico MP, Inc.
Profit Sharing and Savings Plan
(Formerly the Investment Plan for Salaried Employees
of IMC-Agrico MP, 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. 33-59687) pertaining to the IMC-Agrico MP, Inc.
Profit Sharing and Savings Plan formerly known as the Investment Plan
for Salaried Employees of IMC-Agrico MP, Inc. of our report dated May
7, 1999, with respect to the financial statements and supplemental
schedules of the IMC-Agrico MP, Inc. 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
