e11vk
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One)
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ANNUAL REPORT PURSUANT TO SECTION 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2007
OR
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TRANSITION REPORT PURSUANT TO 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934 |
For
the transition period from to
Commission file number 001-32395
CONOCOPHILLIPS STORE SAVINGS PLAN
(Full title of the Plan)
ConocoPhillips
(Name of issuer of securities)
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| 600 North Dairy Ashford |
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| Houston, Texas
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77079 |
| (Address of principal executive office)
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(Zip code) |
FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements
Financial statements of the ConocoPhillips Store Savings Plan, filed as a part of this annual
report, are listed in the accompanying index.
(b) Exhibits
Exhibit 23 Consent of Independent Registered Public Accounting Firm
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the ConocoPhillips Store
Savings Plan Committee has duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
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CONOCOPHILLIPS |
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STORE SAVINGS PLAN |
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/s/ J. W. Sheets |
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J. W. Sheets |
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Plan Financial Administrator |
June 20, 2008
1
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| Index To Financial Statements
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ConocoPhillips |
| And Schedule
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Store Savings Plan |
2
Report of Independent Registered Public Accounting Firm
The ConocoPhillips Store Savings Plan Committee
ConocoPhillips Store Savings Plan
We have audited the accompanying statements of net assets available for benefits of ConocoPhillips
Store Savings Plan as of December 31, 2007 and 2006, and the related statement of changes in net
assets available for benefits for the year ended December 31, 2007. 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 the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. We
were not engaged to perform an audit of the Plan’s internal control over financial reporting. Our
audits included consideration of internal control over financial reporting as a basis for designing
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Plan’s internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and 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, 2007 and 2006, and the
changes in its net assets available for benefits for the year ended December 31, 2007, in
conformity with U.S. generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the financial statements taken
as a whole. The accompanying supplemental schedule of assets (held at end of year) as of December
31, 2007, is presented for purposes of additional analysis and is not a required part of the
financial statements but is 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. This supplemental schedule is the responsibility of the Plan’s management. The supplemental
schedule has been subjected to the auditing procedures applied in our audits of the financial
statements and, in our opinion, is fairly stated in all material respects in relation to the
financial statements taken as a whole.
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/s/ ERNST & YOUNG LLP |
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ERNST & YOUNG LLP |
Houston, Texas
June 20, 2008
3
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| Statements of Net Assets
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ConocoPhillips |
| Available for Benefits
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Store Savings Plan |
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Thousands of Dollars |
| At December 31 |
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2007 |
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2006 |
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Assets |
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Investments, at fair value |
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Mutual funds |
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$ |
19,161 |
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$ |
21,334 |
Plan interest in Master Trusts: |
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Stable Value Fund |
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1,545 |
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1,619 |
ConocoPhillips Stock
Fund |
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4,293 |
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3,619 |
DuPont Stock Fund |
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65 |
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72 |
Loans to Plan participants |
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164 |
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195 |
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Total assets |
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25,228 |
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26,839 |
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Net assets available for
benefits, at fair value |
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25,228 |
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26,839 |
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Adjustment from fair value to contract
value for fully benefit-responsive
investment contracts |
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(13 |
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20 |
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Net assets available for
benefits |
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$ |
25,215 |
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$ |
26,859 |
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See Notes to Financial Statements.
4
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| Statement of Changes In Net
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ConocoPhillips |
| Assets Available for Benefits
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Store Savings Plan |
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Thousands |
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| Year Ended December 31, 2007 |
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of Dollars |
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Additions |
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Contributions |
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Active employee deposits |
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$ |
463 |
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Employer Contributions |
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17 |
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Rollovers |
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97 |
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Total contributions |
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577 |
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Investment income |
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Interest and dividend income |
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720 |
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Interest on participant loans |
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12 |
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Plan interest in Master Trusts
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Stable Value Fund |
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79 |
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ConocoPhillips Stock Fund |
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897 |
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DuPont Stock Fund |
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(4 |
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Net appreciation in fair value
of investments – mutual funds |
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515 |
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Total investment income |
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2,219 |
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Other additions |
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2 |
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Total additions |
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2,798 |
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Deductions |
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Distributions to participants
or their beneficiaries |
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4,440 |
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Administrative expenses |
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1 |
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Other deductions |
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1 |
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Total deductions |
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4,442 |
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Net decrease |
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(1,644 |
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Net assets available for benefits |
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Beginning of year |
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26,859 |
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End of year |
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$ |
25,215 |
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See Notes to Financial Statements.
5
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| Notes To Financial Statements
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ConocoPhillips |
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Store Savings Plan |
Note 1—Plan Description
The following description of the ConocoPhillips Store Savings Plan (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, 401(k) profit sharing plan. The Plan was established in 1985,
and has been amended and restated at various times since its formation. ConocoPhillips Company is
the Plan sponsor (Sponsor). The Vanguard Group, Inc. serves as recordkeeper. Vanguard Fiduciary
Trust Company (Vanguard) serves as trustee.
The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as
amended (ERISA).
Eligibility
An active employee of Kayo Oil Company (Company), a subsidiary of the Sponsor, is eligible to
participate upon the attainment of age 21 and the completion of one year of eligibility service as
defined in the Plan document.
Investment Funds
Plan assets are invested in a variety of investment funds, including ConocoPhillips Common Stock
(Company Stock); however, the DuPont Stock Fund is closed to new investment elections. Investments
in the Plan are participant-directed in 1% increments.
Active Employee Deposits
Active employees can deposit between 1% and 30% of their eligible pay, as defined in the Plan
document (Pay), to the Plan on a before-tax basis.
Active employees are eligible to make catch-up deposits to the Plan beginning in the year they
attain age 50. The active employee is allowed to elect catch-up deposits to be deducted as a
dollar amount from each paycheck up to the applicable dollar limit, as defined by the Plan, for
such Plan year. Elections to make catch-up deposits remain in effect until changed or revoked by
an active employee.
Company Contributions
The Company makes a matching contribution to the account of each retail store manager (this
includes a manager or manager in training but not an assistant manager) (Retail Store Manager) who
is making a deposit of 2% or more of Pay to the Plan. If a Retail Store Manager deposits 2% or
more of Pay, the 2% deposit is deemed a “matched before-tax deposit” and
6
the Retail Store Manager’s account receives a Company matching
contribution equal to 2% of Pay. Deposits by a Retail Store Manager in excess of the 2% matched
before-tax deposit and deposits of up to 30% of Pay by other active employees are deemed “regular
before-tax deposits,” and are not subject to Company matching contributions. The 2007 contributions
amount funded through the forfeiture account was $69,026.
Participant Accounts
Each participant’s account is credited with their deposits; Company contributions, if applicable;
and Plan earnings, and charged with an allocation of investment administrative expenses.
Allocations are based on participant earnings or account balances, as defined. The benefit to
which a participant is entitled is the benefit that could be provided from the participant’s vested
account.
Vesting
Participants are fully vested in regular before-tax deposits and matched before-tax deposits in
their accounts. The participating Retail Store Managers vest in the Company’s matching
contribution if 3 years of vesting service is satisfied by completing 1,000 hours of service each
year either by actually earning 1,000 hours of service in the year or receiving 190 hours of
service for each month served as an employee. Retail Store Managers can also vest in the
Company’s matching contribution if employment continues until the normal retirement date, which is
the 1st day of the month coincident with or immediately following a 65th
birthday, even if the Retail Store Manager has less than 3 years of service.
Forfeitures
The Company matching contribution attributable to the matched before-tax deposits of a
participating, non-vested Retail Store Manager is forfeited if the Retail Store Manager terminates
employment prior to satisfying the vesting requirements; provided, however, that if the non-vested
Retail Store Manager is rehired by the Company within five years, the prior service will be counted
toward the Plan’s vesting schedule. Forfeited amounts are applied against future Company
contributions.
Voting Rights
As a beneficial owner of Company Stock, Plan participants and beneficiaries are entitled to direct
the trustee to vote the Company Stock attributable to their accounts. An active employee
participant on the voting valuation date may direct the trustee to vote the non-directed shares.
Diversification
Generally, participants may make unlimited exchanges out of any investment fund in any dollar
amount, whole percentages or shares of their account to another investment fund subject to the
exchange rules in the Plan document. In addition, using selected investment percentages, a
participant may request a reallocation of both the
7
existing account and future contribution allocations or a rebalancing of the participant’s existing
account.
Share Accounting Method for Company Stock
Any shares purchased or sold for the Plan on any business day are valued at the Participant
Transaction Price, which is calculated using the weighted-average price of the Company Stock traded
on that business day and any carryover impact as described in the Plan document.
Distributions
Total distributions from participant accounts can be made upon the occurrence of specified events,
including the attainment of age 591/2, death, disability, or termination of employment. Partial
distributions are permitted in cases of specified financial hardship.
Certain installment distribution options offered under previous plans were grandfathered into the
Plan.
Loans
Active employee participants can request a loan from their account in the Plan. The minimum loan
is $500. Generally, the maximum loan is the lesser of $50,000 or one-half of the vested value of
the participant’s account. For those eligible for loans, one outstanding loan is available at any
one time for a term of up to 58 months.
Trust Agreements
The trust agreement with Vanguard provides for the administration of certain assets in the Plan.
Additionally, there are three master trust agreements:
The ConocoPhillips Stock Fund Master Trust Agreement provides for the administration of the
ConocoPhillips Stock Fund. The trustee is Vanguard.
The Stable Value Fund (SVF) is managed under the Stable Value Fund Master Trust Agreement. The
assets in this fund include investment contracts and short-term investments. The trustee is State
Street Bank and Trust Company.
The DuPont Stock Fund Master Trust Agreement provides for the administration of the DuPont Stock
Fund. The trustee is Vanguard.
Administration
The Plan is administered by the ConocoPhillips Store Savings Plan Committee (Committee), a Plan
Financial Administrator, a Plan Benefits Administrator, and the Chief Financial Officer of the
Sponsor, collectively referred to as the Plan Administrators. The members of the Committee are
appointed by the Board of Directors of the Sponsor or its delegate. The Plan Financial
Administrator and Plan Benefits
Administrator are the persons who occupy, respectively, the Sponsor
8
positions of Vice President and
Treasurer, and Manager Global Compensation and Benefits. Members of the Committee and the Plan
Administrators serve without compensation, but are reimbursed by the Sponsor for necessary
expenditures incurred in the discharge of their duties. Administrative expenses of the Plan are
paid from assets of the Plan to the extent allowable by law, unless paid by the Sponsor.
Note 2—Significant Accounting Policies
Basis of Presentation
The Plan’s financial statements are presented on the accrual basis of accounting in conformity with
U.S. generally accepted accounting principles. Distributions to participants or their
beneficiaries are recorded when paid.
As described in Financial Accounting Standards Board Staff Position (FSP) AAG INV-1 and SOP 94-4-1,
Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies
Subject to the AICPA Investment Company Guide and Defined-Contribution Health and Welfare and
Pension Plans (the FSP), investment contracts held by a defined contribution plan are required to
be reported at fair value. However, contract value is the relevant measurement attribute for that
portion of the net assets available for benefits of a defined contribution plan attributable to
fully benefit-responsive investment contracts because contract value is the amount participants
would receive if they were to initiate permitted transactions under the terms of the Plan. As
required by the FSP, the statements of net assets available for benefits present the fair value of
the SVF and the adjustment from fair value to contract value. See Note 7 on Master Trusts for more
detail on the SVF including the fair value computation methodology. The contract value of the SVF
represents contributions plus earnings, less participant withdrawals and administrative expenses.
Use of Estimates
The preparation of financial statements requires management to make estimates that affect the
amounts reported in the financial statements and accompanying notes. Actual results could differ
from those estimates.
Note 3—Investments
Investment Valuation and Income Recognition
Common stock and mutual fund securities are valued at fair value. Common stock values are based on
their quoted market prices. Mutual funds are valued using quoted market prices which represent the
net asset values of shares held by the Plan at year-end. The assets in the SVF include investment
contracts and short-term investments. The investment contracts are backed by fixed income
instruments, units of common
collective trusts (CCTs), and assets in an insurance company’s general or separate account. The
investment contracts are fully benefit-
9
responsive, and, as required by the FSP, are valued at fair
value and then adjusted to contract value which represents contributions, plus interest credited,
less distributions and expenses. The short-term investment fund is valued at amortized cost, which
approximates fair value. (See Note 7 on Master Trusts for more detail on the SVF including the
fair value computation methodology.) Participant loans are valued at carrying value, which
approximates fair value.
Purchases and sales of investments are recorded on a trade date basis. Dividends are recorded on
the ex-dividend date. Interest income is recorded on the accrual basis.
Investment securities are exposed to various risks, such as interest rate, market, and credit
risks. Due to the level of risk associated with certain investment securities, it is at least
reasonably possible that changes in values of investments will occur in the near term and that such
changes could materially affect participants’ account balances and the amounts reported in the
Statements of Net Assets Available for Benefits.
Investments that comprised 5% or more of the fair value of net assets available for benefits for
the years ended December 31, 2007, and 2006, are as follows:
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Thousands of Dollars |
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| At December 31 |
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2007 |
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2006 |
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Mutual funds: |
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Vanguard Balanced Index Fund |
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$ |
— |
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$ |
4,025 |
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Vanguard Balanced Index Signal Fund |
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3,215 |
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— |
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Vanguard Prime Money Market Fund |
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7,163 |
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7,720 |
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Vanguard Total International Stock
Index Fund |
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2,862 |
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|
2,787 |
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Vanguard Value Index Fund |
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— |
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5,187 |
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Vanguard Value Index Signal Fund |
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|
4,219 |
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— |
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Plan interest in Master Trusts: |
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Stable Value Fund |
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1,545 |
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|
1,619 |
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ConocoPhillips Stock Fund |
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4,293 |
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|
3,619 |
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Net Appreciation
During 2007, fair value of the Plan’s investments in mutual funds (including gains and losses on
investments bought and sold, as well as held during the year) appreciated $515,000.
Note 4—Tax Status
The Plan received a determination letter from the Internal Revenue Service dated March 23, 2004,
stating that the Plan, as amended and restated as of October 3, 2003, is qualified under Section
401(a) of the Internal Revenue Code (the Code) and, therefore, the related trust is
exempt from taxation. Subsequent to this determination by the Internal Revenue Service, the Plan
was amended. Once qualified, the Plan is required to operate in conformity with the Code to
maintain its
10
qualification. The Committee believes the Plan is being operated in compliance with
the applicable requirements of the Code and, therefore, believes the Plan, as amended, is qualified
and the related trust is tax exempt.
Note 5—Related-Party Transactions
A portion of the Plan’s assets is invested in Company Stock. Because ConocoPhillips is the parent
of the Sponsor, transactions involving Company Stock qualify as related-party transactions. In
addition, certain investments of the Plan are in shares of mutual funds managed by Vanguard.
Because Vanguard is the Plan’s trustee, these transactions qualify as related-party transactions.
All of these types of transactions are exempt from the prohibited transaction rules.
Note 6—Plan Termination
Although it has not expressed any intent to do so, the Sponsor has the right under the Plan to
terminate the Plan subject to the provisions of ERISA. In the event of Plan termination,
participants will become 100% vested in their accounts.
Note 7—Master Trusts
Three investment options of the Plan are held in master trusts and administered under master trust
agreements. These investment options include the SVF, ConocoPhillips Stock Fund, and DuPont Stock
Fund. These investment options provided by the Plan are also available to participants in the
ConocoPhillips Savings Plan. Each plan’s beneficial interest in the master trust funds is based on
that plan’s proportionate share, determined by participant-directed balances, of the value of the
total net assets in the master trust. Investment income for each plan is calculated using this
same basis.
Stable Value Fund
The Plan’s proportionate share of SVF master trust net assets was approximately 0.1% as of December
31, 2007, and December 31, 2006.
The SVF consists of guaranteed investment contracts (GICs), separate account guaranteed investment
contracts (SAGICs), synthetic investment contracts (SYNs), and short-term investments. In a
traditional GIC, the insurance company uses SVF deposits to purchase investments that are held in
the insurance company’s general account. The insurance company is contractually obligated to repay
the principal and a specified rate of interest guaranteed to the SVF master trust. In a SAGIC, the
investments are backed by the assets of an insurance company’s separate account rather than its
general account, and are held for the exclusive
benefit of the plans participating in the separate account. In a SYN structure, the underlying
investments are owned by the SVF master trust and held in trust for Plan participants. The
underlying investments of the SYNs in the SVF master trust consist of CCTs, short-term
11
investments,
and U.S. Treasury notes. The SVF master trust purchases a wrapper contract from an insurance
company or bank to provide market and cash flow protection to the Plan. The wrapper contract
amortizes the realized and unrealized gains and losses on the underlying fixed income investments,
typically over the duration of the investment, through adjustments to the future interest crediting
rate. The issuer of the wrapper contract provides assurance that the adjustments to the interest
crediting rate do not result in a future interest crediting rate that is less than zero.
There are no reserves against contract value for credit risk of the contract issuers or otherwise.
The crediting rates for GICs are set at the time of purchase and are fixed for the specified
contract period. The crediting rates for most SAGICs and SYNs are reset monthly or quarterly and
are based on the fair value of the underlying portfolio of assets backing these contracts.
Key factors influencing future interest crediting rates for a wrapper contract include:
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the level of market interest rates |
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the amount and timing of participant contributions, transfers, and withdrawals
into/out of the wrapper contract |
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• |
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the investment returns generated by the fixed income investments that back the
wrapper contract, and |
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• |
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the duration of the underlying investments backing the wrapper contract. |
While there may be slight variations from one wrapper contract to another, the formula for
determining interest crediting rate resets is based on the characteristics of the underlying fixed
income portfolio. Over time, the crediting rate formula amortizes the SVF’s realized and
unrealized fair value gains and losses over the duration of the underlying investments. The
resulting gains and losses in the fair value of the underlying investments relative to the wrapper
contract value are represented in the SVF asset values as the “Adjustment from fair value to
contract value for fully benefit-responsive contracts.”
12
The SVF values as of December 31, 2007, and December 31, 2006, were as follows:
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Thousands of Dollars |
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| At December 31 |
|
2007 |
|
|
2006 |
|
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|
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SVF, at fair value |
|
|
|
|
|
|
|
|
GICs |
|
$ |
32,572 |
|
|
$ |
95,467 |
|
SAGICs |
|
|
— |
|
|
|
14,835 |
|
Short-term investments |
|
|
41,147 |
|
|
|
58,631 |
|
SYNs: |
|
|
|
|
|
|
|
|
CCTs |
|
|
1,805,831 |
|
|
|
1,744,369 |
|
Short-term investments |
|
|
51 |
|
|
|
612 |
|
U.S. Treasury notes |
|
|
36,404 |
|
|
|
35,323 |
|
Wrapper contracts |
|
|
— |
|
|
|
42 |
|
| |
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Total assets |
|
|
1,916,005 |
|
|
|
1,949,279 |
|
|
|
|
|
|
|
|
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Total liabilities |
|
|
— |
|
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|
— |
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Net assets, at fair value |
|
|
1,916,005 |
|
|
|
1,949,279 |
|
|
|
|
|
|
|
|
|
|
Adjustment from fair value to
contract value for fully
benefit-responsive
investment contracts |
|
|
(16,600 |
) |
|
|
24,772 |
|
| |
|
Net assets |
|
$ |
1,899,405 |
|
|
$ |
1,974,051 |
|
| |
|
|
|
|
|
|
|
|
|
|
Ratio of year-end market
value yield to investments,
at fair value |
|
|
5.374 |
% |
|
|
5.147 |
% |
|
|
|
|
|
|
|
|
|
Ratio of year-end crediting
rate to investments, at
fair value |
|
|
4.997 |
% |
|
|
5.118 |
% |
Fair value of GICs and SAGICs is determined using a discounted cash flow method. Based on its
duration, the estimated cash flow of each contract is discounted using a yield curve interpolated
from swap rates and is adjusted for liquidity and credit quality. For those GICs and SAGICs with
no stated payment dates, the projected value at the end of the required days notice period is
assumed to pay in full and this payment is then discounted following the process described above.
The CCTs are valued at fair value using the net asset value as determined by the issuer based on
the current values of the underlying assets of such trust. The short-term investment fund is
valued at amortized cost, which approximates fair value. The U.S. Treasury notes are valued at
market price plus accrued interest. The fair value of wrapper contracts is determined by
calculating the present value of excess future wrap fees. When the replacement cost of the wrapper
contracts (a re-pricing provided annually by the contract issuer) is
13
greater than the current wrap
fee, the difference is converted into the implied additional fee payment cash flows for the
duration of the holding. The present value of that cash flow stream is calculated using a swap
curve yield that is based on the duration of the holding, and adjusted for the holding’s credit
quality rating.
The significant components of the changes in net assets relating to the SVF are as follows:
| |
|
|
|
|
| |
|
Thousands |
|
| |
|
of Dollars |
|
Year Ended December 31, 2007 |
|
|
|
|
Contributions |
|
$ |
49,942 |
|
Interest income (net) |
|
|
94,757 |
|
Interfund transfers in |
|
|
297,801 |
|
Other additions |
|
|
103 |
|
Distributions |
|
|
(241,487 |
) |
Participant loans |
|
|
(3,696 |
) |
Other deductions |
|
|
(9 |
) |
Interfund transfers out |
|
|
(272,057 |
) |
| |
Net decrease |
|
|
(74,646 |
) |
Beginning of year |
|
|
1,974,051 |
|
| |
End of year |
|
$ |
1,899,405 |
|
| |
In certain circumstances, the amount withdrawn from investment contracts would be payable at fair
value rather than contract value. These events include termination of the Plan, a material adverse
change to the provisions of the Plan, a decision by the administrators of the Plan to withdraw from
an investment contract in order to switch to a different investment provider, or in the event of a
spin-off or sale of a division if the terms of a successor plan do not meet the investment contract
issuer’s underwriting criteria for issuance of a clone investment contract. However, the events
described above are not probable of occurring in the foreseeable future.
Examples of events that would permit a contract issuer to terminate an investment contract upon
short notice include the Plan’s loss of its qualified tax status, un-cured material breaches of
responsibilities, or material and adverse changes to the provisions of the Plan. If one of these
occurred, the investment contract issuer could terminate the investment contract at fair value.
The Plan Administrators do not anticipate any of these events are probable of occurring.
ConocoPhillips Stock Fund
The ConocoPhillips Stock Fund is comprised of Company Stock held in a
master trust, the ConocoPhillips Stock Fund Master Trust. The Plan’s proportionate share of
ConocoPhillips Stock Fund master trust net assets was approximately 0.1% as of December 31, 2007,
and December 31, 2006.
14
The ConocoPhillips Stock Fund values as of December 31, 2007, and December 31, 2006, were as
follows:
| |
|
|
|
|
|
|
|
|
| |
|
Thousands of Dollars |
|
| At December 31 |
|
2007 |
|
|
2006 |
|
| |
|
|
ConocoPhillips Stock Fund |
|
$ |
3,262,620 |
|
|
$ |
2,851,509 |
|
| |
End of year |
|
$ |
3,262,620 |
|
|
$ |
2,851,509 |
|
| |
The significant components of the changes in net assets relating to the ConocoPhillips Stock Fund
are as follows:
| |
|
|
|
|
| |
|
Thousands |
|
| |
|
of Dollars |
|
ConocoPhillips Stock Fund
|
|
|
|
|
Year Ended December 31, 2007 |
|
|
|
|
Contributions |
|
$ |
115,096 |
|
Dividend income |
|
|
63,022 |
|
Net appreciation in fair value of Company Stock |
|
|
631,326 |
|
Interfund transfers in |
|
|
422,105 |
|
Other additions |
|
|
24 |
|
Distributions |
|
|
(208,917 |
) |
Participant loans |
|
|
(22,767 |
) |
Other deductions |
|
|
(673 |
) |
Interfund transfers out |
|
|
(588,105 |
) |
| |
Net increase |
|
|
411,111 |
|
Beginning of year |
|
|
2,851,509 |
|
| |
End of year |
|
$ |
3,262,620 |
|
| |
DuPont Stock Fund
The DuPont Stock Fund is comprised of DuPont stock held in a master trust, the DuPont Stock Fund
Master Trust. This option is closed to new investment elections. The Plan’s proportionate share
of DuPont Stock Fund master trust net assets was approximately 0.1% as of December 31, 2007, and
December 31, 2006.
The DuPont Stock Fund values as of December 31, 2007, and December 31, 2006, were as follows:
| |
|
|
|
|
|
|
|
|
| |
|
Thousands of Dollars |
|
| At December 31 |
|
2007 |
|
|
2006 |
|
| |
|
|
DuPont Stock Fund |
|
$ |
105,273 |
|
|
$ |
136,055 |
|
| |
End of year |
|
$ |
105,273 |
|
|
$ |
136,055 |
|
| |
15
The significant components of the changes in net assets relating to the DuPont Stock Fund are as
follows:
| |
|
|
|
|
| |
|
Thousands |
|
| |
|
of Dollars |
|
DuPont Stock Fund
|
|
|
|
|
Year Ended December 31, 2007 |
|
|
|
|
Dividend income |
|
$ |
3,868 |
|
Net depreciation in fair value of stock |
|
|
(10,439 |
) |
Distributions |
|
|
(8,731 |
) |
Participant loans |
|
|
(95 |
) |
Other deductions |
|
|
(26 |
) |
Interfund transfers out |
|
|
(15,359 |
) |
| |
Net decrease |
|
|
(30,782 |
) |
Beginning of year |
|
|
136,055 |
|
| |
End of year |
|
$ |
105,273 |
|
| |
Note 8—Reconciliation of Financial Statements to Form 5500
The following is a reconciliation of net assets available for benefits as of December 31, 2007 and
2006, as reflected in these financial statements, to the amounts reflected in the Plan’s Form 5500:
| |
|
|
|
|
|
|
|
|
| |
|
Thousands of Dollars |
|
| |
|
2007 |
|
|
2006 |
|
| |
|
|
Net assets available for benefits as
reported in the financial statements |
|
$ |
25,215 |
|
|
$ |
26,859 |
|
Adjustment from fair value to
contract value for certain fully
benefit-responsive investment contracts |
|
|
13 |
|
|
|
(20 |
) |
| |
Net assets available for benefits
as reported in the Form 5500 |
|
$ |
25,228 |
|
|
$ |
26,839 |
|
| |
The following is a reconciliation of net decrease for the year ended December 31, 2007, as
reflected in these financial statements, to the amounts reflected in the Plan’s Form 5500:
| |
|
|
|
|
| |
|
Thousands |
|
| |
|
of Dollars |
|
Year Ended December 31, 2007 |
|
|
|
|
|
|
|
|
|
Net decrease as reported in the
financial statements |
|
$ |
(1,644 |
) |
Adjustment from fair value to contract
value for certain fully benefit-responsive
investment contracts at December 31, 2007 |
|
|
13 |
|
Reverse adjustment from fair value to contract
value for certain fully benefit-responsive
investment contracts at December 31, 2006 |
|
|
20 |
|
| |
Net loss as reported
in the Form 5500 |
|
$ |
(1,611 |
) |
| |
16
Note 9—New Accounting Standards
In September 2006, the Financial Accounting Standards Board issued Statement of Financial
Accounting Standards No. 157 (FAS 157), Fair Value Measurement. This standard clarifies the
definition of fair value for financial reporting, establishes a framework for measuring fair value
and requires additional disclosures about the use of fair value measurement. FAS 157 is effective
for financial statements issued for fiscal years beginning after November 15, 2007. Plan
management is currently evaluating the effect that the provisions of FAS 157 will have on the
Plan’s financial statements.
17
|
|
|
| Schedule of Assets (Held at End of Year)
|
|
ConocoPhillips |
| Schedule H, Line 4i
|
|
Store Savings Plan |
|
|
|
EIN 73-0400345, Plan 027 |
At December 31, 2007
| |
|
|
|
|
|
|
|
|
|
| (a)(b) Identity of |
|
(c) Description of investment |
|
|
|
|
|
|
| issue, borrower, |
|
including maturity date, |
|
Thousands of Dollars |
| lessor, or similar |
|
rate of interest, collateral, |
|
|
(d) Historical |
|
(e) Current |
| party |
|
par or maturity value |
|
|
Cost |
|
Value |
| |
|
|
|
|
|
|
|
|
|
| The Vanguard Group* |
|
6,035 units, Vanguard
500 Index Signal Fund |
|
|
|
** |
|
$ |
674 |
| |
|
|
|
|
|
|
|
|
|
| |
|
147,591 units, Vanguard
Balanced Index Signal Fund |
|
|
|
** |
|
|
3,215 |
| |
|
|
|
|
|
|
|
|
|
| |
|
12,450 units, Vanguard Extended
Market Index Signal Fund |
|
|
|
** |
|
|
427 |
| |
|
|
|
|
|
|
|
|
|
| |
|
10,684 units, Vanguard
Growth Index Signal Fund |
|
|
|
** |
|
|
329 |
| |
|
|
|
|
|
|
|
|
|
| |
|
7,162,697 units, Vanguard
Prime Money Market Fund |
|
|
|
** |
|
|
7,163 |
| |
|
|
|
|
|
|
|
|
|
| |
|
26,785 units, Vanguard Total
Bond Market Index Signal Fund |
|
|
|
** |
|
|
272 |
| |
|
|
|
|
|
|
|
|
|
| |
|
143,920 units, Vanguard Total
International Stock Index Fund |
|
|
|
** |
|
|
2,862 |
| |
|
|
|
|
|
|
|
|
|
| |
|
156,255 units, Vanguard
Value Index Signal Fund |
|
|
|
** |
|
|
4,219 |
| |
|
|
|
|
|
|
|
|
|
| Participants* |
|
Loans to Plan participants,
Interest rates ranging
from 4.0% to 8.5% |
|
|
— |
|
|
164 |
| |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
$ |
19,325 |
| |
|
|
|
| |
| * |
|
Party-in-interest |
| |
| ** |
|
Historical cost information is not required for participant-directed investments. |
18
|
|
|
|
Exhibit Index
|
|
ConocoPhillips |
|
|
|
Store Savings Plan |
| |
|
|
| |
|
|
| Exhibit |
|
|
| Number |
|
Description |
| |
23
|
|
Consent of Independent Registered Public Accounting Firm |
19