FORM 11-K
FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE, SAVINGS
AND SIMILAR PLANS PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1995.
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from _____ to _____.
Commission file number 1-9993.
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below: Ashland Coal, Inc. Employee Thrift Plan.
B. Name of issuer of the securities to be held pursuant to the plan and
the address of its principal executive office: Ashland Coal, Inc., 2205
Fifth Street Road, Huntington, West Virginia 25701.
<PAGE>
Financial Statements and Exhibits
Financial Statements and Schedules
Report of Independent Auditors. . . . . . . . . . . . . 3
Statements of Financial Condition, with Fund Information . 4
Statements of Income and Changes in Plan Equity, with Fund
Information. . . . . . . . . . . . . . . . . . . . . . 5
Notes to Financial Statements . . . . . . . . . . . . . 6
Schedule of Assets Held for Investment Purposes . . . . 10
Schedule of Reportable Transactions . . . . . . . . . . 11
Exhibits
24 - The consent of Ernst & Young LLP, independent
auditors . . . . . . . . . . . . . . . . . . . . . . . 16
<PAGE>
Report of Independent Auditors
To the Administrator
Ashland Coal, Inc. Employee Thrift Plan
We have audited the accompanying statements of financial condition of the
Ashland Coal, Inc. Employee Thrift Plan as of December 31, 1995 and 1994,
and the related statements of income and changes in plan equity for the
years then ended. These financial statements are the responsibility of
the Plan's management. Our responsibility is to express an opinion on
these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of the Plan at December
31, 1995 and 1994, and the income and changes in plan equity for the years
then ended, in conformity with generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the
basic financial statements taken as a whole. The accompanying supplemental
schedules of assets held for investment purposes as of December 31, 1995
and reportable transactions for the year then ended are presented for
purposes of complying with the Department of Labor's Rules and Regulations
for Reporting and Disclosure under the Employee Retirement Income Security
Act of 1974 and are not a required part of the basic financial statements.
The Fund Information in the statements of financial condition and the
statements of income and changes in plan equity is presented for purposes
of additional analysis rather than to present the financial condition and
income and changes in plan equity 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.
May 23, 1996 /s/ERNST & YOUNG LLP
PAGE
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<TABLE>
<CAPTION>
ASHLAND COAL, INC. EMPLOYEE THRIFT PLAN
STATEMENTS OF FINANCIAL CONDITION, WITH FUND INFORMATION
Ashland Coal,
Inc. U.S. Ashland Inc. Twentieth Twentieth
Common Investment Government Diversified Common Century Century
Stock Contract Securities Equity Stock Growth Ultra
Total Fund Fund Fund Fund Fund Investors Investors
<S> <C> <C> <C> <C> <C> <C> <C> <C>
December 31, 1995
ASSETS
Cash $56,426 $49,246 $- $- $- $7,180 $- $-
Investments
Ashland Coal, Inc.
Common Stock (cost
- $2,207,059) 1,882,551 1,882,551 - - - - - -
Ashland Inc. Common
Stock (cost - $450,608) 873,839 - - - - 873,839 - -
Twentieth Century Growth
Investors (cost
- $1,754,385) 1,500,692 - - - - - 1,500,692 -
Twentieth Century Ultra
Investors (cost
- $2,438,310) 2,424,894 - - - - - - 2,424,894
Twentieth Century Vista
Investors (cost
- $1,702,520) 1,648,194 - - - - - - -
Twentieth Century Balanced
Investors (cost
- $970,522) 948,146 - - - - - - -
Twentieth Century U.S.
Governments
Intermediate - Term
Bond (cost - $856,554) 880,034 - - - - - - -
Twentieth Century
Value (cost
- $1,842,896) 1,844,499 - - - - - - -
Twentieth Century
International Equity
(cost - $747,156) 777,351 - - - - - - -
Bankers Trust Stable
Value Government
Trust (cost
- $5,882,737) 5,882,737 - - - - - - -
BZW Barclays Global
Investors Equity
Index (cost-$1,306,803) 1,442,870 - - - - - - -
Amounts due from
participating employees
and employer
Employees 73,970 4,648 - - - - 8,280 11,321
Employer 37,314 2,345 - - - - 4,177 5,711
Notes receivable from
employees 207,011 - - - - - - -
PLAN EQUITY $20,480,528 $1,938,790 $- $- $- $881,019 $1,513,149 $2,441,926
December 31, 1994
ASSETS
Investments
Common Stock
Ashland Coal, Inc.
(cost - $1,984,417) $2,274,328 $2,274,328 $- $- $- $- $- $-
Ashland Inc.
(cost - $460,570) 877,266 - - - - 877,266 - -
Common Trust Funds
U.S. Government
Securities
(cost - $1,354,585) 1,485,011 - - 1,485,011 - - - -
Diversified Equity
(cost - $2,332,980) 2,685,697 - - - 2,685,697 - - -
Short-Term Investments
(cost approximates
market) 60,673 51,742 - - 2 8,929 - -
Investment Contracts
(held by Ashland Inc.
Collective Investment
Trust - cost
approximates market) 10,268,220 - 10,268,220 - - - - -
Amounts due from
participating employees
employer
Employees 61,822 10,663 30,738 6,487 13,934 - - -
Employer 32,018 5,894 16,355 3,227 6,542 - - -
Amounts receivable from
(due to) other funds - (15,760) 22,288 139 350 (7,017) - -
Accrued income receivable 57,391 2,369 54,734 178 86 24 - -
PLAN EQUITY $17,802,426 $2,329,236 $10,392,335 $1,495,042 $2,706,611 $879,202 $- $-
See accompanying notes.
<PAGE>
Bankers BZW
Twentieth Trust Barclays
Twentieth Twentieth Century U.S. Twentieth Stable Global
Century Century Governments Twentieth Century Value Investors Participant
Vista Balanced Intermediate - Century International Government Equity Loan
Investors Investors Term Bond Value Equity Trust Index Fund
December 31, 1995
ASSETS
Cash $- $- $- $- $- $- $- $-
Investments
Ashland Coal, Inc.
Common Stock
(cost - $2,358,765) - - - - - - - -
Ashland Inc.
Common Stock
(cost - $855,182) - - - - - - - -
Twentieth Century Growth
Investors (cost
- $1,754,385) - - - - - - - -
Twentieth Century Ultra
Investors (cost
- $2,438,310) - - - - - - - -
Twentieth Century Vista
Investors (cost
- $1,702,520) 1,648,194 - - - - - - -
Twentieth Century Balanced
Investors (cost
- $970,522) - 948,146 - - - - - -
Twentieth Century U.S.
Governments
Intermediate - Term
Bond (cost - $856,554) - - 880,034 - - - - -
Twentieth Century
Value (cost
- $1,842,896) - - - 1,844,499 - - - -
Twentieth Century
International Equity
(cost - $747,156) - - - - 777,351 - - -
Bankers Trust Stable
Value Government
Trust (cost
- $5,882,737) - - - - - 5,882,737 - -
BZW Barclays Global
Investors Equity
Index (cost
- $1,306,803) - - - - - - 1,442,870 -
Amounts due from
participating employees
and employer
Employees 8,769 4,592 2,484 9,165 5,022 12,135 7,554 -
Employer 4,423 2,316 1,253 4,623 2,533 6,122 3,811 -
Notes receivable from
employees - - - - - - - 207,011
PLAN EQUITY $1,661,386 $955,054 $883,771 $1,858,287 $784,906 $5,900,994 $1,454,235 $207,011
December 31, 1994
ASSETS
Investments
Common Stock
Ashland Coal, Inc.
(cost - $1,984,417) $- $- $- $- $- $- $- $-
Ashland Inc.
(cost - $460,570) - - - - - - - -
Common Trust Funds
U.S. Government
Securities (cost
- $1,354,585) - - - - - - - -
Diversified Equity
(cost - $2,332,980) - - - - - - - -
Short-Term Investments
(cost approximates
market) - - - - - - - -
Investment Contracts
(held by Ashland Inc.
Collective Investment
Trust - cost
approximates market) - - - - - - - -
Amounts due from
participating employees
and employer
Employees - - - - - - - -
Employer - - - - - - - -
Amounts receivable from
(due to) other funds - - - - - - - -
Accrued income receivable - - - - - - - -
PLAN EQUITY $- $- $- $- $- $- $- $-
</TABLE>
PAGE
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<TABLE>
<CAPTION>
ASHLAND COAL, INC. EMPLOYEE THRIFT PLAN
STATEMENTS OF INCOME AND CHANGES IN PLAN EQUITY, WITH FUND INFORMATION
Ashland Coal,
Inc. U.S. Ashland Inc. Twentieth Twentieth
Common Investment Government Diversified Common Century Century
Stock Contract Securities Equity Stock Growth Ultra
Total Fund Fund Fund Fund Fund Investors Investors
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Year ended December 31, 1995
Additions to net assets
attributed to:
Net investment income (loss)
Interest and dividend income $1,371,379 $40,456 $399,600 $98 $196 $28,105 $205,301 $112,924
Net appreciation (depreciation)
in fair value of investments (132,184) (603,569) (37,006) 103,622 605,138 16,257 (269,358) (37,416)
1,239,195 (563,113) 362,594 103,720 605,334 44,362 (64,057) 75,508
Less investment management fees (1,076) (121) - - - - (75) (90)
1,238,119 (563,234) 362,594 103,720 605,334 44,362 (64,132) 75,418
Employee contributions 1,705,980 208,828 469,316 99,165 207,296 - 89,873 122,740
Employer contributions 838,673 110,238 242,149 48,352 96,730 - 40,898 57,801
2,544,653 319,066 711,465 147,517 304,026 - 130,771 180,541
Total additions 3,782,772 (244,168) 1,074,059 251,237 909,360 44,362 66,639 255,959
Withdrawals (1,104,670) (60,655) (360,684) (27,963) (49,828) (1,675) (5,809) (73,969)
Net increase (decrease) prior to
interfund transfers 2,678,102 (304,823) 713,375 223,274 859,532 42,687 60,830 181,990
Interfund transfers (net) - (85,623) (11,105,710) (1,718,316) (3,566,143) (40,870) 1,452,319 2,259,936
Net increase (decrease) in
plan equity 2,678,102 (390,446) (10,392,335) (1,495,042) (2,706,611) 1,817 1,513,149 2,441,926
Plan equity at beginning of year 17,802,426 2,329,236 10,392,335 1,495,042 2,706,611 879,202 - -
Plan equity at end of year $20,480,528 $1,938,790 $- $- $- $881,019 $1,513,149 $2,441,926
Year ended December 31, 1994
Additions to net assets
attributed to:
Net investment income (loss)
Interest and dividend income $698,003 $38,438 $632,313 $329 $215 $26,708 $- $-
Net appreciation (depreciation)
in fair value of investments (52,263) (130,747) - 14,018 48,449 16,017 - -
645,740 (92,309) 632,313 14,347 48,664 42,725 - -
Employee contributions 1,767,094 290,964 850,936 275,740 349,454 - - -
Employer contributions 784,518 149,546 385,374 82,962 166,636 - - -
2,551,612 440,510 1,236,310 358,702 516,090 - - -
Total additions 3,197,352 348,201 1,868,623 373,049 564,754 42,725 - -
Withdrawals (1,309,076) (111,875) (1,029,022) (59,712) (62,177) (46,290) - -
Net increase (decrease) prior to
interfund transfers 1,888,276 236,326 839,601 313,337 502,577 (3,565) - -
Interfund transfers (net) - (324,819) 3,284 121,021 231,270 (30,756) - -
Net increase (decrease) in
plan equity 1,888,276 (88,493) 842,885 434,358 733,847 (34,321) - -
Plan equity at beginning of year 15,914,150 2,417,729 9,549,450 1,060,684 1,972,764 913,523 - -
Plan equity at end of year $17,802,426 $2,329,236 $10,392,335 $1,495,042 $2,706,611 $879,202 $- $-
See accompanying notes.
<PAGE>
Bankers BZW
Twentieth Trust Barclays
Twentieth Twentieth Century U.S. Twentieth Stable Global
Century Century Governments Twentieth Century Value Investors Participant
Vista Balanced Intermediate - Century International Government Equity Loan
Investors Investors Term Bond Value Equity Trust Index Fund
Year ended December 31, 1995
Additions to net assets
attributed to:
Net investment income (loss)
Interest and dividend income $110,402 $71,391 $31,554 $174,100 $734 $196,207 $260 $51
Net appreciation (depreciation)
in fair value of investments (66,925) (28,461) 19,212 (5,998) 21,285 3,704 147,331 -
43,477 42,930 50,766 168,102 22,019 199,911 147,591 51
Less investment management fees (95) (39) (80) (76) (38) (377) (85) -
43,382 42,891 50,686 168,026 21,981 199,534 147,506 51
Employee contributions 99,787 48,372 25,639 77,801 64,335 126,422 66,406 -
Employer contributions 43,902 23,076 12,595 35,680 27,352 66,423 33,477 -
143,689 71,448 38,234 113,481 91,687 192,845 99,883 -
Total additions 187,071 114,339 88,920 281,507 113,668 392,379 247,389 51
Withdrawals (9,329) (594) (12,680) (24,098) (21,537) (430,077) (25,772) -
Net increase (decrease) prior
to interfund transfers 177,742 113,745 76,240 257,409 92,131 (37,698) 221,617 51
Interfund transfers (net) 1,483,644 841,309 807,531 1,600,878 692,775 5,938,692 1,232,618 206,960
Net increase (decrease) in
plan equity 1,661,386 955,054 883,771 1,858,287 784,906 5,900,994 1,454,235 207,011
Plan equity at beginning of year - - - - - - - -
Plan equity at end of year $1,661,386 $955,054 $883,771 $1,858,287 $784,906 $5,900,994 $1,454,235 $207,011
Year ended December 31, 1994
Additions to net assets
attributed to:
Net investment income (loss)
Interest and dividend income $- $- $- $- $- $- $- $-
Net appreciation (depreciation)
in fair value of investments - - - - - - - -
- - - - - - - -
Employee contributions - - - - - - - -
Employer contributions - - - - - - - -
- - - - - - - -
Total additions - - - - - - - -
Withdrawals - - - - - - - -
Net increase (decrease) prior to
interfund transfers - - - - - - - -
Interfund transfers (net) - - - - - - - -
Net increase (decrease) in
plan equity - - - - - - - -
Plan equity at beginning of year - - - - - - - -
Plan equity at end of year $- $- $- $- $- $- $- $-
</TABLE>
<PAGE>
<PAGE>
ASHLAND COAL, INC. EMPLOYEE THRIFT PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 1995
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES
The accounts of the Ashland Coal, Inc. Employee Thrift Plan (the Plan) are
maintained on the accrual basis of accounting. Contributions from employees
and related employer contributions are recorded when the employer makes
payroll deductions from Plan participants.
Investments are accounted for at market value based on the closing market
price for investments traded on an exchange, on bid price for other listed
investments and at cost (which approximates market) for investment
contracts and short-term investment funds. The cost of investments
disposed of is determined on the basis of average historical cost.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
NOTE 2-CHANGE OF TRUSTEE
The Chase Manhattan Bank, N.A. (successor to U.S. Trust Company) was
appointed as the Plan's new Trustee to hold the Plan's investments under a
trust agreement effective August 1, 1995. Prior to that time Key Trust
Company of Ohio, N.A. (formerly Society National Bank) was the Trustee and
held the Plan's investments under a trust agreement.
NOTE 3-DESCRIPTION OF THE PLAN
The Plan was established as a savings and retirement plan covering eligible
employees of Ashland Coal, Inc. (Ashland Coal) or its participating
subsidiaries.
Subject to applicable limitations, participating employees may contribute
an amount up to 16% of their salaries or wages to the Plan, on either a
before- or after-tax basis. Ashland Coal or its participating subsidiaries
currently contribute an amount equal to 70% of the amount of "Basic
Contributions". "Basic Contributions" are amounts contributed by employees
up to 6% of their salaries or wages.
Investment income (or loss), less investment management fees, is allocated
to participants' accounts on the basis of each participant's proportionate
interest in the fund. The value of the fund and the value of each
participant's interest will fluctuate with the market value of the
securities in which the fund is invested.
For all of 1994 and 1995, participants of the Plan had the following funds
in which their balances could be invested:
Ashland Coal, Inc. Funds are invested in Ashland Coal's common stock.
Common Stock
Fund
<PAGE>
ASHLAND COAL, INC. EMPLOYEE THRIFT PLAN
NOTES TO FINANCIAL STATEMENTS - CONTINUED
NOTE 3-DESCRIPTION OF THE PLAN--Continued
Ashland Inc. Funds are invested in common stock of Ashland Inc. These
Common Stock funds represent funds which were invested in certain
Fund Ashland Inc. benefit plans prior to being transferred to
the Plan. Except for similar transfers, no other
amounts under the Plan may be invested in this fund.
Beginning in March 1990, investment income earned by
participants from this fund is allocated to the
participants' other investment funds proportionately based
on the participants' current investment elections.
For all of 1994 and through July 31, 1995, participants of the Plan also
had the following funds in which their balances could be invested:
Investment Funds were invested in a portfolio of investment contracts
Contract with a number of insurance companies. The principal
Fund amount invested in the fund was guaranteed by the
insurance companies, but there was no predetermined fixed
interest rate over a specified period. These funds were
invested in the Ashland Inc. Collective Investment Trust.
The Plan held a 3.0% interest in this fund as of December
31, 1994. The remaining interests at December 31, 1994,
were held by the Ashland Inc. Employee Thrift Plan, the
SuperAmerica Hourly Associates Savings Plan, the Coal-Mac,
Inc. Savings and Retirement Plan, and the Mingo Logan Coal
Company Retirement Plan and Mingo Logan Hourly Employees
Savings Plan. The average yield relative to the
investment contract fund was 6.6% for the year ended
December 31, 1994, and the average crediting interest rate
was 6.8% as of December 31, 1994.
U.S. Government Funds were invested in a common trust fund, which was
Securities Fund invested in obligations of the United States Government
and its agencies and instrumentalities with maximum
maturities of four years.
Diversified Funds were invested in a common trust fund, which was
Equity Fund invested primarily in common stocks of large, well
capitalized corporations.
Subsequent to July 31, 1995, in addition to the Ashland Coal, Inc. and
Ashland Inc. Common Stock Funds, employees also have the following funds in
which their balances may be invested:
Twentieth An equity fund that seeks capital growth over time by
Century Growth investing in common stocks considered by Twentieth Century
Investors to have better-than-average prospects for appreciation.
Stocks in Growth's portfolio are not required to pay
dividends.
Twentieth An aggressive equity fund that seeks capital growth over
Century Ultra time by investing in common stocks considered by Twentieth
Investors Century to have better-than-average prospects for
appreciation. Ultra typically invests in small- to
medium-sized companies.
<PAGE>
ASHLAND COAL, INC. EMPLOYEE THRIFT PLAN
NOTES TO FINANCIAL STATEMENTS - CONTINUED
NOTE 3-DESCRIPTION OF THE PLAN--Continued
Twentieth An aggressive equity fund that seeks capital growth over
Century Vista time by investing in common stocks considered by Twentieth
Investors Century to have better-than-average prospects for
appreciation.
Twentieth A balanced fund that seeks capital growth and current
Century income by investing approximately 60% of its assets in
Balanced growth stocks and the remainder in fixed income
Investors securities. This combination of equity and fixed income
investments is designed to provide investors with current
income as they invest for growth.
Twentieth The fund invests in securities issued by the U.S.
Century government and its agencies, including mortgage-backed
U.S. securities. The weighted average maturity of the fund is
Governments between three and ten years.
Intermediate-
Term Bond
Twentieth A conservative equity fund that seeks long-term capital
Century Value growth. Income is a secondary objective. To pursue its
objective, the fund invests primarily in equity securities
of well-established companies that are believed by
Twentieth Century to be undervalued at the time of
purchase.
Twentieth The fund seeks capital growth over time by investing in
Century common stocks of foreign companies considered by Twentieth
International Century to have better-than-average prospects for
Equity appreciation. To find the best opportunitites for growth,
the fund spreads its investments across many countries and
continents. The fund may invest in U.S. companies when
circumstances warrant, but its primary purpose is to
diversify investments across a broad range of overseas
companies.
Bankers Trust The trust seeks to provide current income, while
Stable Value maintaining a stable share price. By investing
Government exclusively in BT Pyramid Stable Value Government Fund,
Trust the trust attempts to provide investors with yields that
are higher than money market funds and certificates of
deposit, as well as to provide a relatively predictable
annual return.
BZW Barclays The fund seeks the long-term capital appreciation
Global potential of large capitalization Blue Chip stocks while
Investors minimizing risk through broad diversification. The fund
Equity Index invests in BZW Barclays Global Investors Equity Index Fund
(formerly Wells E, a highly diversified portfolio of the stocks included
Fargo Equity in the Standard & Poor's 500 Composite Stock Price Index
Index) (S&P 500 Index).
<PAGE>
ASHLAND COAL, INC. EMPLOYEE THRIFT PLAN
NOTES TO FINANCIAL STATEMENTS - CONTINUED
NOTE 3-DESCRIPTION OF THE PLAN--Continued
Ashland Coal has the right to discontinue its contributions at any time or
to terminate the Plan. In the event of a termination of the Plan, the Plan
and related trust shall be continued until such time as all accounts have
been fully distributed, at which time the Plan and trust shall terminate.
Information about benefits and other provisions of the Plan are contained
in its summary plan description, copies of which are available from Ashland
Coal.
NOTE 4-TAX STATUS OF THE PLAN
To its best knowledge and belief, Ashland Coal believes the Plan is being
operated in compliance with applicable law and that the Plan was qualified
and the related trust was tax-exempt as of the financial statement date.
Certain administrative errors have been discovered with respect to one of
the years in question and certain prior years. A filing has been made
under the Internal Revenue Service Voluntary Compliance Resolution Program
in regard thereto. It is contemplated that the proposed correction methods
will be accepted and that the errors will not impact the qualification of
the plan.
The most recent favorable determination letter pertaining to the Plan was
dated August 4, 1989. That letter confirmed that the provisions of the plan
document, as they existed on that date (including certain proposed
amendments submitted to the Internal Revenue Service on June 14, 1989),
were in compliance with the applicable requirements of the Internal Revenue
Code. The Plan has been amended several times since the 1989 determination
letter was issued and has been amended to bring it into compliance with
subsequent changes in the law. The Plan as amended and restated effective
October 1, 1989, has been submitted to the Internal Revenue Service for an
updated determination letter and the Plan, as amended and restated
effective August 1, 1995 (or through the date of filing), will be submitted
to the Internal Revenue Service for an updated determination letter no
later than September 16, 1996. Neither Ashland Coal nor its benefits
counsel have any reason to believe that the Plan, as revised, will not
receive favorable determination letters or that revisions cannot be made
that would allow favorable determination letters to be issued.
NOTE 5-TRANSACTIONS WITH PARTIES-IN-INTEREST
Ashland Coal engages the services of a third party service provider to
assist it in carrying out certain administrative and record keeping
functions under the Plan. All expenses of administering the Plan are paid
by Ashland Coal. The Plan is not charged for administrative services
performed on its behalf by Ashland Coal.
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<TABLE>
<CAPTION>
ASHLAND COAL, INC. EMPLOYEE THRIFT PLAN
ASSETS HELD FOR INVESTMENT PURPOSES
(Line 27(a) of Form 5500)
December 31, 1995
Shares,
Units or Fair
Description of Investments Face Value Cost Value
<S> <C> <C> <C>
Ashland Coal, Inc. Common Stock 88,073 $2,207,059 $1,882,551
Ashland Inc. Common Stock 24,878 450,608 873,839
Twentieth Century Growth Investors 77,395 1,754,385 1,500,692
Twentieth Century Ultra Investors 92,872 2,438,310 2,424,894
Twentieth Century Vista Investors 112,890 1,702,520 1,648,194
Twentieth Century Balanced
Investors 55,806 970,522 948,146
Twentieth Century U.S. Governments
Intermediate-Term Bond 86,788 856,554 880,034
Twentieth Century Value 312,627 1,842,896 1,844,499
Twentieth Century International
Equity 99,917 747,156 777,351
Bankers Trust Stable Value
Government Trust 5,882,737 5,882,737 5,882,737
BZW Barclays Global Investors
Equity Index 102,989 1,306,803 1,442,870
Total Investments $20,159,550 $20,105,807
</TABLE>
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<TABLE>
<CAPTION>
ASHLAND COAL, INC. EMPLOYEE THRIFT PLAN
SCHEDULE OF REPORTABLE TRANSACTIONS
Year Ended December 31, 1995
Current
Value of
Expenses Asset on Net
Number of Purchase Selling Incurred with Cost of Transaction Gain
Investment Manager Description of Asset Transactions Price Price Transaction Asset Date (Loss)
Category (i)--Single transactions in excess of 5% of plan assets
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Society National Bank Investment Contract Fund 1 $- $10,124,000 Net $10,124,000 $10,124,000 None
Investment Contract Fund 1 - 1,127,854 Net 1,127,854 1,127,854 None
Employee Benefits Reserve
Fund 1 - 1,689,276 Net 1,461,465 1,689,276 $227,811
Employee Benefits Value
Equity Fund 1 - 3,451,600 Net 2,532,333 3,451,600 919,267
Twentieth Century Twentieth Century Growth
Investors 1 1,208,429 - Net 1,208,429 1,208,429 N/A
Twentieth Century Ultra
Investors 1 1,808,601 - Net 1,808,601 1,808,601 N/A
Twentieth Century Vista
Investors 1 1,255,680 - Net 1,255,680 1,255,680 N/A
Twentieth Century Value 1 1,476,345 - Net 1,476,345 1,476,345 N/A
Bankers Trust Stable Value
Government Trust 1 5,697,183 - Net 5,697,183 5,697,183 N/A
BZW Barclays Global
Investors Equity Index 1 1,132,062 - Net 1,132,062 1,132,062 N/A
Category (iii)--Summary of transactions
Society National Bank Employee Benefits Money
Market Fund 93 791,117 - Net 791,117 791,117 N/A
Employee Benefits Money
Market Fund 81 - 851,790 Net 851,790 851,790 None
<PAGE>
ASHLAND COAL, INC. EMPLOYEE THRIFT PLAN
SCHEDULE OF REPORTABLE TRANSACTIONS
Year Ended December 31, 1995
Current
Value of
Expenses Asset on Net
Number of Purchase Selling Incurred with Cost of Transaction Gain
Investment Manager Description of Asset Transactions Price Price Transaction Asset Date (Loss)
Society National Bank Employee Benefits Reserve
Fund 21 $162,502 $- Net $162,502 $162,502 N/A
Employee Benefits Reserve
Fund 12 - 1,751,119 Net 1,517,088 1,751,119 $234,031
Employee Benefits Value
Equity Fund 22 351,319 - Net 351,319 351,319 N/A
Employee Benefits Value
Equity Fund 9 - 3,642,154 Net 2,684,299 3,642,154 957,855
Investment Contract Fund 8 - 11,252,354 Net 11,252,354 11,252,354 None
Twentieth Century Twentieth Century Growth
Investors 34 1,587,743 - Net 1,587,743 1,587,743 N/A
Twentieth Century Growth
Investors 14 - 38,766 Net 38,659 38,766 107
Twentieth Century Ultra
Investors 34 2,430,257 - Net 2,430,257 2,430,257 N/A
Twentieth Century Ultra
Investors 16 - 109,724 Net 104,870 109,724 4,854
Twentieth Century Vista
Investors 33 1,657,437 - Net 1,657,437 1,657,437 N/A
Twentieth Century Vista
Investors 12 - 63,978 Net 63,406 63,978 572
Twentieth Century Balanced
Investors 30 943,887 - Net 943,887 943,887 N/A
Twentieth Century Balanced
Investors 6 - 39,719 Net 38,612 39,719 1,107
<PAGE>
ASHLAND COAL, INC. EMPLOYEE THRIFT PLAN
SCHEDULE OF REPORTABLE TRANSACTIONS
Year Ended December 31, 1995
Current
Value of
Expenses Asset on Net
Number of Purchase Selling Incurred with Cost of Transaction Gain
Investment Manager Description of Asset Transactions Price Price Transaction Asset Date (Loss)
Twentieth Century Twentieth Century Value 25 $1,804,743 $- Net $1,804,743 $1,804,743 N/A
Twentieth Century Value 15 - 124,514 Net 123,389 124,514 $1,125
Twentieth Century
International Equity 25 913,362 - Net 913,362 913,362 N/A
Twentieth Century
International Equity 17 - 166,918 Net 165,469 166,918 1,449
Bankers Trust Stable Value
Government Trust 30 6,516,305 - Net 6,516,305 6,516,305 N/A
Bankers Trust Stable Value
Government Trust 23 - 776,444 Net 776,444 776,444 None
BZW Barclays Global
Investors Equity Index 27 1,406,134 - Net 1,406,134 1,406,134 N/A
BZW Barclays Global
Investors Equity Index 15 - 105,600 Net 99,373 105,600 6,227
Note: There were no category (ii) or (iv) reportable transactions during the year ended December 31, 1995.
</TABLE>
<PAGE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
Ashland Coal, Inc. has duly caused this annual report to be signed on its
behalf by the undersigned hereunto duly authorized.
ASHLAND COAL, INC. EMPLOYEE
THRIFT PLAN
By:ASHLAND COAL, INC. as Plan
Administrator
Date: June 25, 1996 By:/s/ Roy F. Layman
Roy F. Layman,
Administrative Vice President/Secretary
<PAGE>
INDEX TO EXHIBITS
Exhibit Item Page
24 Consent of Independent Auditors 16
<PAGE>
Exhibit 24
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement
(Form S-8, No. 33-26549) pertaining to the Ashland Coal, Inc. Employee
Thrift Plan and in the related Prospectus of our report dated May 23, 1996,
with respect to the financial statements and schedules of the Ashland Coal,
Inc. Employee Thrift Plan included in this Annual Report (Form 11-K) for
the year ended December 31, 1995.
/s/ERNST & YOUNG LLP
Louisville, Kentucky
June 20, 1996
<PAGE>
