<PAGE>
UNITED STATES
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 fiscal year ended August 31, 1996 or
Transition Report Pursuant to Section 15(d) of the Securities Exchange
Act of 1934
For the transition period from to
Commission file number: 33-33305
DEKALB Genetics Corporation
Savings and Investment Plan
(Full title of the plan)
DEKALB GENETICS CORPORATION
3100 Sycamore Road
DeKalb, Illinois 60115
(Name of Issuer of the securities held pursuant to the plan
and address of its principal executive office)
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amendment to be signed on its behalf by the
undersigned, thereunto duly authorized.
DEKALB Genetics Corporation
(Registrant)
By: Bruce P. Bickner
Bruce P. Bickner
Chairman and Chief
Executive Officer
Date: February 28, 1997
<PAGE>
DEKALB GENETICS CORPORATION
SAVINGS AND INVESTMENT PLAN
FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
AS OF AUGUST 31, 1997 AND 1996
TOGETHER WITH AUDITORS' REPORT
EMPLOYER IDENTIFICATION NUMBER 36-3586793
PLAN NUMBER 002
<PAGE>
DEKALB GENETICS CORPORATION
SAVINGS AND INVESTMENT PLAN
FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
AUGUST 31, 1997 AND 1996
INDEX
REPORT OF INDEPENDENT ACCOUNTANTS
FINANCIAL STATEMENTS:
Statement of Net Assets Available for Benefits,
With Fund Information, as of August 31, 1997
Statement of Net Assets Available for Benefits,
With Fund Information, as of August 31, 1996
Statement of Changes in Net Assets Available for
Benefits, With Fund Information, for the Year
Ended August 31, 1997
Statement of Changes in Net Assets Available for
Benefits, With Fund Information, for the Year
Ended August 31, 1996
NOTES TO FINANCIAL STATEMENTS
SUPPLEMENTAL SCHEDULES:
Item 27a--Schedule of Assets Held for Investment
Purposes as of August 31, 1997
Item 27d--Schedule of Reportable Transactions
for the Year Ended August 31, 1997
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Administrative Committee of the
DEKALB Genetics Corporation Savings and Investment Plan:
We have audited the accompanying financial statements and schedules of the
DEKALB GENETICS CORPORATION SAVINGS AND INVESTMENT PLAN (the `Plan'') as of
August 31, 1997 and 1996, and for the years then ended, as listed in the
accompanying index. These financial statements and schedules are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements and schedules 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 of the Plan as of August 31, 1997 and 1996,
and changes in net assets available for benefits for the years then ended, in
conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules, as listed in
the accompanying index, are presented for the purpose of additional analysis and
are not a required part of the basic 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 fund information in the statements of net assets available for
benefits and changes in net assets available for benefits is presented for
-- 2
purposes of additional analysis rather than to present 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 the 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
February 10, 1998
<PAGE>
<TABLE>
DEKALB GENETICS CORPORATION SAVINGS AND INVESTMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
AS OF AUGUST 31, 1997
<CAPTION>
Table 1 of 2 FUND INFORMATION
MONEY FIXED
EQUITY MARKET INCOME
FUND FUND FUND
<S> <C> <C> <C>
ASSETS:
Investments, at fair
market value or
contract value-
DEKALB Genetics
Corporation common
stock $ 0 $ 0 $ 0
Common stocks 56,160,636 0 0
Mutual funds 29,231,852 0 13,796,505
Short-term fixed 5,739,040 9,322,630 908,961
income fund
U.S. Treasury bonds 0 0 2,903,592
and notes
Participation
accumulation fund 0 0 0
Participant loans 0 0 0
Total 91,131,528 9,322,630 17,609,058
investments
-- 3
Receivables-
Company contribution 954,928 148,399 183,424
Accrued interest and 111,439 23,318 26,947
dividends
Fund transfers pending 246,241 (114,187) (2,919)
Total 1,312,608 57,530 207,452
receivables
Total assets 92,444,136 9,380,160 17,816,510
LIABILITIES:
Due to brokers (828,815) 0 0
Other liabilities (113,700) (19,977) (25,118)
Total (942,515) (19,977) (25,118)
liabilities
NET ASSETS AVAILABLE FOR
BENEFITS $91,501,621 $9,360,183 $17,791,392
</TABLE>
<TABLE>
<CAPTION>
Table 2 of 2 FUND INFORMATION
CAPITAL COMPANY PFIZER
PRESERVATION STOCK STOCK PARTICIPANT
FUND FUND FUND LOAN FUND TOTAL
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at fair market
value or contract value-
DEKALB Genetics
Corporation common stock
$ 0 $13,100,316 $ 0 $ 0 $ 13,100,316
Common stocks 0 0 188,933 0 56,349,569
Mutual funds 5,316,998 0 0 0 48,345,355
Short-term fixed income 1,059,949 98,668 44,157 0 17,173,405
fund
U.S. Treasury bonds and 0 0 0 0 2,903,592
notes
Participation accumulation
fund 12,360,445 0 0 0 12,360,445
Participant loans 0 0 0 1,012,920 1,012,920
Total investments 18,737,392 13,198,984 233,090 1,012,920 151,245,602
Receivables-
Company contribution 119,227 1,347,572 0 0 2,753,550
Accrued interest and 2,621 388 689 30 165,432
dividends
-- 3
Fund transfers pending (124,493) (4,642) 0 0 0
Total receivables (2,645) 1,343,318 689 30 2,918,982
Total assets 18,734,747 14,542,302 233,779 1,012,950 154,164,584
LIABILITIES:
Due to brokers 0 0 0 0 (828,815)
Other liabilities (17,542) (72,004) 0 (16,000) (264,341)
Total liabilities (17,542) (72,004) 0 (16,000) (1,093,156)
NET ASSETS AVAILABLE FOR
BENEFITS $18,717,205 $14,470,298 $233,779 $ 996,950 $153,071,428
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
<TABLE>
DEKALB GENETICS CORPORATION SAVINGS AND INVESTMENT PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
AS OF AUGUST 31, 1996
<CAPTION>
Table 1 of 2 FUND INFORMATION
MONEY FIXED
EQUITY MARKET INCOME
FUND FUND FUND
<S> <C> <C> <C>
ASSETS:
Investments, at fair
market value or
contract value-
DEKALB Genetics
Corporation common
stock $ 0 $ 0 $ 0
Common stocks 63,030,501 0 0
Corporate Bond and
Bond funds 0 0 5,820,567
Investment in common
trust funds 3,615,114 10,041,997 437,247
U.S. Treasury bonds
and notes 0 0 11,670,924
Participation
Accumulation Fund 0 0 0
Participant loans 0 0 0
Total 66,645,615 10,041,997 17,928,738
investments
-- 3
Receivables-
Company contribution 1,239,145 163,645 276,361
Accrued interest and 102,489 23,744 45,721
dividends
Fund transfers pending 173,993 443,376 (821,983)
Total 1,515,627 630,765 (499,901)
receivables
Total assets 68,161,242 10,672,762 17,428,837
LIABILITIES:
Other liabilities 65,564 12,419 18,100
NET ASSETS AVAILABLE FOR
BENEFITS $68,095,678 $10,660,343 $17,410,737
</TABLE>
<TABLE>
<CAPTION>
Table 2 of 2
CAPITAL COMPANY PFIZER
PRESERVATION STOCK STOCK PARTICIPANT
FUND FUND FUND LOAN FUND TOTAL
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at fair market
value or contract value-
DEKALB Genetics Corporation
common stock $ 0 $4,503,972 $ 0 $ 0 $ 4,503,972
Common stocks 0 0 120,984 0 63,151,485
Corporate Bond and Bond
funds 4,560,286 0 0 0 10,380,853
Investment in common trust
funds 257,302 39,804 10,379 0 14,401,843
U.S. Treasury bonds and
notes 0 0 0 0 11,670,924
Participation Accumulation
Fund 13,979,818 0 0 0 13,979,818
Participant loans 0 0 0 869,412 869,412
Total investments 18,797,406 4,543,776 131,363 869,412 118,958,307
Receivables-
Company contribution 190,918 363,530 0 0 2,233,599
Accrued interest and dividends 289 9,581 536 19 182,379
Fund transfers pending 203,122 1,492 0 0 0
-- 3
Total receivables 394,329 374,603 536 19 2,415,978
Total assets 19,191,735 4,918,379 131,899 869,431 121,374,285
LIABILITIES:
Other liabilities 13,523 22,444 0 16,000 148,050
NET ASSETS AVAILABLE FOR BENEFITS
$19,178,212 $4,895,935 $131,899 $853,431 $121,226,235
E>
The accompanying notes are an integral part of this statement.
<PAGE>
</TABLE>
<TABLE>
DEKALB GENETICS CORPORATION SAVINGS AND INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED AUGUST 31, 1997
<CAPTION>
Table 1 of 2 FUND INFORMATION
MONEY FIXED
EQUITY MARKET INCOME
FUND FUND FUND
<S> <C> <C> <C>
$68,095,678 $10,660,343 $17,410,737
BALANCE AT AUGUST 31, 1996
Contributions-
Company 1,908,644 322,528 361,185
Participant 2,877,422 335,021 506,847
Interest income 242,769 562,457 346,861
Dividend income 1,678,304 0 592,211
Net appreciation in fair value of
investments 24,928,089 0 799,677
Distributions (7,241,211) (2,403,486) (2,107,374)
Transfers (550,212) (93,508) (38,009)
Participant loan distributions 0 0 0
Participant loan repayments 0 0 0
Fees and expenses (437,862) (23,172) (80,743)
Net additions
(deductions) 23,405,943 (1,300,160) 380,655
-- 2
BALANCE AT AUGUST 31, 1997 $91,501,621 $ 9,360,183 $17,791,392
</TABLE>
<TABLE>
<CAPTION>
Table 2 of 2 FUND INFORMATION
CAPITAL COMPANY PFIZER
PRESERVATION STOCK STOCK PARTICIPANT
FUND FUND FUND LOAN FUND TOTAL
<S> <C> <C> <C> <C> <C>
BALANCE AT AUGUST 31, 1996 $19,178,212 $4,895,935 $131,899 $ 853,431 $121,226,235
Contributions-
Company 230,923 1,787,298 0 0 4,610,578
Participant 368,782 707,646 0 0 4,795,718
Interest income 842,463 (6,928) 1,168 37,600 2,026,390
Dividend income 297,903 42,586 2,181 0 2,613,185
Net appreciation in fair value of
investments (1,192) 7,358,642 98,531 0 33,183,747
Distributions (2,639,418) (232,678) 0 (343,004) (14,967,171)
Transfers 445,213 (80,206) 0 316,722 0
Participant loan distributions 0 0 0 406,400 406,400
Participant loan repayments 0 0 0 (274,199) (274,199)
Fees and expenses (5,681) (1,997) 0 0 (549,455)
Net additions (deductions)
(461,007) 9,574,363 101,880 143,519 31,845,193
BALANCE AT AUGUST 31, 1997 $18,717,205 $14,470,298 $233,779 $ 996,950 $153,071,428
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
<TABLE>
DEKALB GENETICS CORPORATION SAVINGS AND INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED AUGUST 31, 1996
<CAPTION>
Table 1 of 2 FUND INFORMATION
MONEY FIXED
EQUITY MARKET INCOME
FUND FUND FUND
<S> <C> <C> <C>
BALANCE AT AUGUST 31, $55,860,361 $11,244,439 $16,439,447
1995
Contributions-
Company 1,973,807 303,429 452,303
Participant 2,140,326 268,943 434,511
Interest income 191,895 0 423,805
Dividend income 1,192,639 0 0
Net appreciation in
fair value of 8,338,682 0 (426,532)
investments
Net investment gain
on common trust 547,429 612,779 754,965
funds
Distributions (3,748,861) (1,283,150) (1,066,614)
Transfers 1,839,186 (483,488) 441,563
Participant loan (154,330) (29,249) (33,878)
-- 3
distributions
Participant loan 261,974 31,806 59,727
repayments
Fees and expenses (347,430) (5,166) (68,560)
Net additions
(deductions) 12,235,317 (584,096) 971,290
BALANCE AT AUGUST 31, $68,095,678 $10,660,343 $17,410,737
1996
The accompanying notes are an integral part of this statement.
</TABLE>
<TABLE><
CAPTION>
Table 2 of 2 FUND INFORMATION
CAPITAL COMPANY PFIZER
PRESERVATION STOCK STOCK PARTICIPANT
FUND FUND FUND LOAN FUND TOTAL
<S> <C> <C> <C> <C> <C>
BALANCE AT AUGUST 31, 1995 $21,353,808 $2,308,782 $ 92,555 $ 1,024,028 $108,323,420
Contributions-
Company 304,277 523,877 0 0 3,557,693
Participant 354,035 418,101 0 0 3,615,916
Interest income 934,348 3,277 0 115,169 1,668,494
Dividend income 0 35,008 1,465 0 1,229,112
Net appreciation in fair
value of investments 0 3,104,365 36,830 0 11,053,345
Net investment gain on
common trust funds 221,334 0 1,049 0 2,137,556
Distributions (3,492,405) (289,318) 0 (53,676) (9,934,024)
Transfers (543,352) (1,253,909) 0 0 0
Participant loan (16,584) (288) 0 234,329 0
distributions
Participant loan repayments 66,094 46,040 0 (465,641) 0
Fees and expenses (3,343) 0 0 (778) (425,277)
Net additions
(deductions) (2,175,596) 2,587,153 39,344 (170,597) 12,902,815
-- 3
BALANCE AT AUGUST 31, 1996 $19,178,212 $4,895,935 $131,899 $ 853,431 $121,226,235
The accompanying notes are an integral part of this statement.
</TABLE>
<PAGE>
DEKALB GENETICS CORPORATION
SAVINGS AND INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 1997 AND 1996
1. PLAN DESCRIPTION
The following brief description of the Plan is provided for general
information purposes only. Participants should refer to the Plan document
for more complete information.
GENERAL
The Plan, which was established effective September 1, 1982, is a defined
contribution plan covering substantially all employees of the Company and
its subsidiaries. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (``ERISA'), as amended.
CONTRIBUTIONS
All monies received by the Trustee of the Plan are invested at the direction
of the participants in accordance with the terms of the Trust Agreement.
Participant contributions (from 1% to 15% of covered compensation) are
invested in the equity fund, money market fund, fixed income fund, capital
preservation fund or Company common stock fund maintained by the Trustee.
Company contributions (50% matching of participant contributions from 1% to
6% of covered compensation) are invested in the various funds in proportion
to the participants' investment in such funds. The Company may elect to
contribute an additional amount at the discretion of the Board of Directors.
Effective September 1, 1995, the Plan was amended to provide for a
guaranteed Company contribution to the Plan equal to 1% of payroll for all
employees eligible to participate in the Plan. Effective September 1, 1996,
the Company increased the compensation-based contribution from 1% of pay to
2% of pay.
-- 3
VESTING
A participant is at all times fully vested in his employee contribution
account. His employer contribution account vests at the rate of 20% per
year.
FORFEITED ACCOUNTS
Termination of employment before the completion of five years of service
will result in forfeitures from the employer contribution account unless
such termination is due to the participant's attainment of age 65 or death
or disability. Forfeited nonvested accounts will be used to reduce Company
contributions.
BENEFITS
Distributions from the Plan are paid in cash as a lump sum provided that
distributions from the Company common stock fund may, at the participant's
election, be received in either whole shares of DEKALB Genetics Corporation
Class A common stock or cash.
INVESTMENT OPTIONS
Contributions from participants are credited directly to their account in
each fund. Employee contributions are invested in multiples of 10%.
Transfers of account balances must be in whole percentages. Rollovers from
prior qualified plans are invested at the employee's discretion. Company
matching contributions and any discretionary Company matching contributions
are invested in the investment funds in the same proportions as the
participant employee's pretax contributions. A participant may change his
investment direction with respect to his current account and future
contributions no more than four times per year (March 1, June 1, September 1
and December 1 of each year) by giving the Plan's administrative committee
written notice in the prescribed form. Changes in investment direction of
the current account balance will become effective as of the first day in the
-- 4
next Plan quarter. Changes in investment direction of future contributions
become effective as of the first payroll pay date in the next Plan quarter.
There are currently five investment funds available to participants. These
five funds are described briefly below:
EQUITY FUND--The equity fund is a pooled fund invested primarily in
common stocks. There are no guarantees with respect to principal or
investment return.
MONEY MARKET FUND--The money market fund is a pooled fund maintained and
managed by the Trustee that is invested in short-term debt securities
such a commercial paper and certificates of deposit. There are no
guarantees with respect to principal or investment return.
FIXED INCOME FUND--The fixed income fund is a pooled fund invested
primarily in corporate and government bonds of intermediate (e.g., five
to seven years) term. There are no guarantees with respect to principal
or investment return.
CAPITAL PRESERVATION FUND--The capital preservation fund is underwritten
by the Aetna Insurance Company. The underlying investments are medium-
term debt securities with an average investment life of four to five
years. The investment portfolio includes commercial paper, medium-term
bonds and private debt placements. The investments in the fund are
valued at contract value. There are no guarantees with respect to
payment of income or principal.
COMPANY COMMON STOCK FUND--The Company common stock fund enables
participants to purchase DEKALB Genetics Corporation Class A common
stock. The per share purchase price equals the average of the per share
closing price of Class B common stock as quoted on the National
Association of Securities Dealers Automated Quotation System/National
Market System (NASDAQ/NMS) on the last ten trading days prior to the date
of purchase. The Board of Directors has authorized up to 100,000 shares
-- 5
of Class A common stock as available for purchase by the Plan. There are
no guarantees with respect to principal or investment return.
A sixth fund, the Pfizer stock fund, was created solely for the purpose of
holding common stock of Pfizer, Inc. received by the Plan through employee
rollover contributions. No additional contributions may be made to this
fund.
A seventh fund, the participant loan fund, was created for the purpose of
recording participant loans and related activity. Interest on these loans
is accumulated at the prime rate plus 1%, determined at the date the loan is
granted.
LOANS TO PARTICIPANTS
Participants may apply for a loan from the Plan. The total loan amount is
limited to the lesser of $50,000 or one half of the participant's vested
account balance. Loan repayments are made by the participant through
payroll deductions. The minimum loan amount is $1,000 and only one loan per
Plan year to a participant is allowed.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The accompanying financial statements are prepared on the accrual basis of
accounting. The preparation of the financial statements in conformity with
generally accepted accounting principles requires the Plan's management to
use estimates and assumptions that affect the accompanying financial
statements and disclosures. Actual results could differ from these
estimates.
CONTRIBUTIONS
Contributions to DEKALB Genetics Corporation Savings and Investment Plan
(the ``Plan') from participants are recorded on an accrual basis and are
deposited directly in the appropriate fund on a biweekly basis.
-- 6
Contributions made by DEKALB Genetics Corporation (the ``Company') are
accrued on the basis of participants' contributions and are made quarterly.
INVESTMENTS VALUATION
Investments in securities (U.S. Treasury bonds and notes, corporate bond and
bond investment funds, and common stocks) traded on a national securities
exchange are valued at the last reported sales price on the last business
day of the Plan's year; securities in collective short-term investment funds
and money market funds are stated at fair value as determined by the Trustee
of such funds. The capital preservation fund is valued at contract value.
WITHDRAWALS AND TRANSFERS
Withdrawals of participant and employer contributions can be made subject to
certain specified restrictions and tax consequences. Participants may elect
to transfer all or part of their balance of funds to other funds as the Plan
allows on a quarterly basis. Transfers between the capital preservation
fund and the money market funds are prohibited as are transfers of
participant balances to the company stock fund.
INCOME RECOGNITION
Purchases and sales of securities are reflected on a trade-date basis.
Dividend income is recorded on the ex-dividend date. Income from other
investments are recorded as earned on an accrual basis.
NET APPRECIATION (DEPRECIATION) IN FAIR VALUE OF INVESTMENTS
The Plan presents, in the statements of changes in net assets available for
benefits, the net appreciation (depreciation) in fair value of its
investments which consists of realized gains or losses and the unrealized
appreciation (depreciation) on those investments.
ADMINISTRATIVE EXPENSES
Trustee fees and investment management fees were paid by the Plan in 1997
and 1996. All other administrative fees are paid by the Company.
-- 7
3. INVESTMENTS
Individual investments (at fair value or contract value) representing 5% or
more of net assets available for benefits in 1997 and 1996 are summarized as
follows:
<TABLE>
<CAPTION>
DESCRIPTION 1997 1996
<S> <C> <C>
Harris Bank Common Stock Fund $22,932,664 $15,447,645
Citibank Liquid Reserve Fund 9,322,630 9,974,392
Harris Bank Collective
Marketable Bond Fund 13,796,505 11,670,924
Aetna Fixed Income Contract 12,360,445 13,858,294
DEKALB Genetics Corporation 13,100,316 0
stock
</TABLE>
The Plan's investments (including investments bought and sold, as well as
held, during the year) appreciated in value $33,183,747 and $11,053,345 for
the years ended August 31, 1997 and 1996, respectively, summarized as
follows:
<TABLE>
<CAPTION>
1997 1996
<S> <C> <C>
DEKALB Genetics
Corporation common stock $ 7,358,642 $
3,104,365
Common stocks 25,026,620 8,375,512
U.S. Treasury bonds and 799,677 (426,532)
notes
Participation Accumulation (1,192) 0
Fund
$33,183,747 $11,053,345
</TABLE>
<PAGE>
4.TAX STATUS
The Plan obtained its latest determination letter dated April 28, 1995, in
which the Internal Revenue Service stated that the Plan, as then designed,
was in compliance with the applicable requirements of the Internal Revenue
Code. The Plan has been amended since receiving the determination letter.
However, the Plan administrator and the Plan's tax counsel believe that the
Plan is currently designed and being operated in compliance with the
applicable requirements of the Internal Revenue Code.
5. PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the right
under the Plan to discontinue its contributions at any time and to terminate
the Plan subject to the provisions of ERISA. In the event of Plan
termination, participants will become fully vested in their account
balances.
6. RECONCILIATION TO FORM 5500
As of August 31, 1997 and 1996, the Plan had approximately $6,318,267 and
$2,914,312, respectively, of pending distributions to participants who
elected to withdraw from the operation and earnings of the Plan. These
amounts are recorded as a liability in the Plan's Form 5500, however, these
amounts are not recorded as a liability in the accompanying statements of
net assets available for plan benefits in accordance with generally accepted
accounting principles.
The following table reconciles net assets available for benefits per the
financial statements to the Form 5500 as filed by the Company for the years
ended August 31, 1997 and 1996:
<TABLE>
<CAPTION>
NET ASSETS AVAILABLE
BENEFITS FOR PLAN BENEFITS,
PAYABLE TO BENEFITS AUGUST 31
PARTICIPANTS PAID 1997 1996
<S> <C> <C> <C> <C>
Per financial $ 0 $14,967,171 $153,071,428 $121,226,235
statements
Accrued benefit
payments 6,318,267 6,318,267 (6,318,267) (2,914,312)
Reversal of 1996
accrual for benefit 0 (2,914,312) 0 0
payments
Per Form 5500 $6,318,267 $18,371,126 $146,753,161 $118,311,923
</TABLE>
7. SUBSEQUENT EVENT
On January 1, 1998, the Plan changed trustees from Citibank, N.A. to T. Rowe
Price Trust Company.
<PAGE>
<TABLE>
DEKALB GENETICS CORPORATION SAVINGS AND INVESTMENT PLAN
ITEM 27A--SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF AUGUST 31, 1997
(EMPLOYER IDENTIFICATION NUMBER 36-3586793, PLAN NUMBER 002)
<CAPTION>
DESCRIPTION OF INVESTMENT,
INCLUDING MATURITY DATE,
IDENTITY OF ISSUE, BORROWER, RATE OF INTEREST, COLLATERAL
LESSOR OR SIMILAR PARTY PAR OR MATURITY VALUE COST MARKET
<S> <C> <C> <C>
*DEKALB Genetics Corp. Common stock, 333,766 shares $ 13,100,316 $ 13,100,316
Common Stock-
AMP Incorporated Common stock, 35,000 shares 1,274,454 1,750,000
Anheuser Busch Common stock, 29,000 shares 1,276,735 1,236,125
Boeing Company Common stock, 10,000 shares 188,474 545,000
Bristol Meyers & Co. Squibb Company
Common stock, 16,000 shares 814,467 1,216,000
Burlington Resources, Inc. Common stock, 56,000 shares 2,282,636 2,838,528
Corning, Incorporated Common stock, 15,000 shares 365,574 793,125
Dana Corporation Common stock, 33,000 shares 1,028,290 1,520,079
Dover Corp. Common stock, 40,000 shares 1,016,494 2,762,520
Eastman Chemical Company Common stock, 15,000 shares 997,225 897,195
Eaton Corporation Common stock, 13,000 shares 709,424 1,170,819
Exel Limited Common stock, 28,000 shares 583,167 1,536,500
Exxon Corp. Common stock, 32,000 shares 842,497 1,958,016
Flour Corporation Common stock, 24,600 shares 1,292,905 1,380,675
Genuine Parts Co. Common stock, 60,000 shares 1,328,568 1,852,500
General Signal Corp. Common stock, 14,000 shares 560,696 607,250
Grainger WW Incorporated Common stock, 18,000 shares 1,104,665 1,598,634
Hasbro Incorporated Common stock, 59,000 shares 1,413,706 1,585,625
Hercules Incorporated Common stock, 20,000 shares 813,601 1,033,760
Int'l Flavor & Frangrances Common stock, 16,000 shares 769,496 818,000
International Business Machines Corp.
-2-
DESCRIPTION OF INVESTMENT,
INCLUDING MATURITY DATE,
IDENTITY OF ISSUE, BORROWER, RATE OF INTEREST, COLLATERAL
LESSOR OR SIMILAR PARTY PAR OR MATURITY VALUE COST MARKET
Common stock, 18,000 shares 990,740 1,824,750
Marsh & McLennan Co's Inc. Common stock, 38,000 shares 1,406,182 2,593,500
MBIA Inc. Common stock, 13,000 shares 782,990 1,472,250
McGraw-Hill Companies, Inc. Common stock, 31,000 shares 1,283,107 1,900,703
National Service Industries Common stock, 15,000 shares 583,896 663,750
Pall Corporation Common stock, 43,000 shares 1,035,635 1,018,584
Pitney Bowes, Inc. Common stock, 20,000 shares 906,361 1,527,500
Pfizer, Inc. Common stock, 3,408 shares 55,806 188,933
Raytheon Company Common stock, 35,000 shares 874,652 1,925,000
Common Stock (continued)-
Royal Dutch Petroleum Co. N.Y.
Common stock, 48,000 shares $ 980,628 $ 2,436,000
Rubbermaid Incorported Common stock, 55,000 shares 1,290,423 1,375,000
Schering-Plough Corp. Common stock, 25,000 shares 395,886 1,200,000
Service Corp. International Common stock, 48,900 shares 1,115,673 1,564,800
Sherwin Williams Co. Common stock, 77,000 shares 1,468,148 2,112,726
State Street Boston Corporation Common stock, 33,000 shares 548,287 1,645,875
UST Incorporated Common stock, 34,000 shares 965,579 981,750
Wachovia Corporation Common stock, 15,000 shares 540,403 933,750
Whitman Corporation Common stock, 69,000 shares 1,293,479 1,694,847
Xerox Corporation Common stock, 29,000 shares 1,393,853 2,189,500
Total Common Stock 36,574,802 56,349,569
Harris Trust & Savings Bank Mutual Funds-
-3-
DESCRIPTION OF INVESTMENT,
INCLUDING MATURITY DATE,
IDENTITY OF ISSUE, BORROWER, RATE OF INTEREST, COLLATERAL
LESSOR OR SIMILAR PARTY PAR OR MATURITY VALUE COST MARKET
*Common Stock Fund Common stock, 879,421 shares 9,375,669 22,932,664
*Small Capital Value Fund Common stock, 86,570 shares 2,449,438 2,929,524
*Convertible Funds Common stock, 57,299 shares 1,670,962 1,822,684
*International Fund Common stock, 98,283 shares 1,602,779 1,546,980
*Enhanced Liquidity Fund Common Trust Fund, 261,648 shares
5,425,592 5,316,998
*Marketable Bond Fund Common Trust Fund, 615,743 shares
12,844,707 13,796,505
*Short-term Investment Fund
Money Market 17,173,405 17,173,405
Total Collective Investment
Funds 50,542,552 65,518,760
U.S. Treasury bonds and notes:
U.S. Treasury note $300,000 par, 8.25%, due 5/15/05
278,063 314,532
U.S. Treasury note $200,000 par, 8,875%, due 2/15/99
195,000 208,156
U.S. Treasury note $50,000 par, 8.875%, due 11/15/97
50,500 50,313
U.S. Treasury note $200,000 par, 8.5%, due 2/15/00 227,250 210,968
U.S. Treasury note $400,000 par, 7.5%, due 5/15/02 401,125 420,500
U.S. Treasury note $500,000 par, 5.875%, due 2/15/04
-4-
DESCRIPTION OF INVESTMENT,
INCLUDING MATURITY DATE,
IDENTITY OF ISSUE, BORROWER, RATE OF INTEREST, COLLATERAL
LESSOR OR SIMILAR PARTY PAR OR MATURITY VALUE COST MARKET
483,516 488,905
U.S. Treasury bond $400,000 par, 7.625%, due 2/15/07
403,812 418,124
U.S. Treasury bond $400,000 par, 9.375%, due 2/15/06
$ 406,069 $ 477,376
U.S. Treasury bond $300,000 par, 7.75%, due 2/15/01
309,703 314,718
Total U.S. Treasury bonds and
notes 2,755,038 2,903,592
Aetna Participant Accumulation Fund #DC-
13591 12,360,445 12,360,445
Plan participants Participant loans, with interest rates
from 7% to 12.5% 0 1,012,920
$115,333,153 $151,245,602
</TABLE>*
Party in interest.
The accompanying notes are an integral part of this schedule.
<PAGE>
<TABLE>
DEKALB GENETICS CORPORATION SAVINGS AND INVESTMENT PLAN
ITEM 27D--SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED AUGUST 31, 1997
(EMPLOYER IDENTIFICATION NUMBER 36-3586793, PLAN NUMBER 002)
<CAPTION>
CURRENT NET
IDENTITY DESCRIPTION NUMBER OF PURCHASE SELLING COST VALUE GAIN
OF PARTY OF ASSETS TRANSACTIONS PRICE PRICE OF ASSET OF ASSET OR LOSS
<S> <C> <C> <C> <C> <C> <C> <C>
*Citibank, N.A. Liquid Reserve 554 $33,323,56 $ $33,323,56 $33,323,56 $0
Fund 6 0 6 6
269 0 30,671,081 30,671,081 30,671,081 0
</TABLE>
*Party-in-interest transaction.
