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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
FOR THE PLAN YEAR ENDED DECEMBER 31, 2000
PROTEIN TECHNOLOGIES INTERNATIONAL, INC.
SAVINGS INVESTMENT PLAN
(FULL TITLE OF THE PLAN)
PROTEIN TECHNOLOGIES INTERNATIONAL, INC.
1034 DANFORTH DRIVE
ST. LOUIS, MISSOURI 63102
(NAME AND ADDRESS OF PRINCIPAL EXECUTIVE OFFICE OF ISSUER)
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Pursuant to the requirements of the Securities and Exchange Act of 1934, Protein
Technologies International, Inc. has duly caused this Annual Report to be signed
by the undersigned hereunto duly authorized.
Protein Technologies International, Inc
Savings Investment Plan
Date: June 27, 2001
BY /s/ James M. Fales
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James M. Fales
Chief Financial Officer
Page Number
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Report of Independent Accountants 1
Basic Financial Statements
Statement of Net Assets Available for Benefits 2
Statement of Changes in Net Assets Available for Benefits 3
Notes to Financial Statements 4 - 7
Additional Information *
Schedule I - Schedule of Assets (Held at End of Year) 8
Schedule II - Schedule of Reportable Transactions
(Nonparticipant-Directed Transactions or Series of
Transactions in Excess of 5% of Plan Assets) 9
* Other supplemental schedules required by Section 2520.103-10 of the Department
of Labor Rules and Regulations for Reporting and Disclosure under ERISA have
been omitted because they are not applicable.
Report of Independent Accountants
To the Participants and Administrator of
Protein Technologies International Savings Investment Plan
In our opinion, the accompanying statements of net assets available for benefits
and the related statements of changes in net assets available for benefits
present fairly, in all material respects, the net assets available for benefits
of Protein Technologies International Savings Investment Plan (the "Plan") at
December 31, 2000 and 1999, and the changes in net assets available for benefits
for the years then ended in conformity with accounting principles generally
accepted in the United States of America. 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 of these statements in accordance with auditing standards generally
accepted in the United States of America, which 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,
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.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
(held at end of year) and reportable transactions 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. These supplemental schedules are the
responsibility of the Plan's management. The supplemental schedules 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.
/S/ PRICEWATERHOUSECOOPERS LLP
June 19, 2001
1
PROTEIN TECHNOLOGIES INTERNATIONAL SAVINGS
INVESTMENT PLAN
Statement of Net Assets Available for Benefits
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As of December 31,
2000 1999
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Investments, at fair value Registered investment companies:
Vanguard 500 Index Fund * $ 12,920,970 * $ 13,041,780
Vanguard Explorer Fund 2,293,189 1,315,877
Vanguard Federal Money Market Fund * 11,519,889 * 10,463,837
Vanguard International Growth Fund 2,086,225 1,979,021
Vanguard Wellington Fund * 4,455,059 * 4,744,483
Vanguard Windsor II Fund * 5,973,253 * 5,830,687
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39,248,585 37,375,685
Vanguard Retirement Savings Trust 1,055,487 1,113,580
Conoco Stock Fund 169,478 188,761
Dupont Stock Fund # 8,700,218 # 5,953,933
Participant Loans 1,745,380 1,540,365
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Net assets available for benefits $ 50,919,148 $ 46,172,324
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* Represents an investment 5% or more of net assets available for benefits.
# Represents a nonparticipant-directed investment 5% or more of net assets
available for benefits.
The accompanying notes are an integral part of financial statements.
2
PROTEIN TECHNOLOGIES INTERNATIONAL SAVINGS
INVESTMENT PLAN
Statement of Changes in Net Assets Available for Benefits
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Year Ended December 31,
2000 1999
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Additions
Investment income:
Interest and dividend income, investments $ 2,342,278 $ 2,157,767
Interest income, participant loans 157,064 126,357
Net appreciation/(depreciation) in fair value
of investments (3,181,882) 2,015,162
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(682,540) 4,299,286
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Contributions:
Employer 3,088,572 2,679,018
Participant 5,441,906 4,611,753
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8,530,478 7,290,771
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Asset transfers in - 250,716
Other additions - 4,501
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Total additions 7,847,938 11,845,274
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Deductions
Payment of benefits 3,083,937 1,984,080
Administrative expenses 17,177 13,764
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Total deductions 3,101,114 1,997,844
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Net increase 4,746,824 9,847,430
Net assets available for plan benefits:
Beginning of year 46,172,324 36,324,894
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End of year $ 50,919,148 $ 46,172,324
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The accompanying notes are an integral part of the financial statements.
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PROTEIN TECHNOLOGIES INTERNATIONAL SAVINGS
INVESTMENT PLAN
Notes to Financial Statements
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Note 1 - Description of Plan
The following description of the Protein Technologies International (the
"Company") Savings Investment Plan (the "Plan") provides only general
information. Participants should refer to the Plan agreement for a more complete
description of the Plan's provisions.
General
The Plan is a defined-contribution plan covering all domestic regular full-time
and part-time sales, administrative and clerical, production and maintenance
employees of the Company. Participants may contribute to the Plan upon
enrollment; however, one year of covered service is required in order to receive
Company matching contributions (see "Contributions" below). The Plan is subject
to the provisions of the Employee Retirement Income Security Act of 1974
("ERISA").
The Company sold the Fiber Sales & Development Corporation division on August
25, 2000. The Company vested all employees from the sold division in the Plan.
The Plan is administered by the Company. Vanguard Fiduciary Trust Company
("VFTC") is the Trustee of the assets of the Plan. As Trustee, VFTC has the
authority to hold, manage and protect the assets of the Plan in accordance with
the provisions of the Plan and the trust agreements.
Contributions
Each year, participants may contribute up to 12% of annual compensation on a
pre-tax basis, or up to 10% of compensation on an after-tax basis with a
combined total not to exceed 15% of compensation, subject to certain limits
imposed by the Internal Revenue Service ("IRS") and the Plan terms. Basic
contributions not exceeding 6% of the participant's compensation are matched
100% by the Company after one year of service.
Participant accounts
Each participant's account is credited with the participant's contribution and
allocations of (a) the Company's contribution and (b) Plan earnings and charged
with an allocation of administrative expenses, if any. Allocations are based on
participant earnings or account balances, as defined. The benefit to which a
participant is entitled is the benefit that can be provided from the
participant's vested account.
Vesting
Participants are immediately vested in their contributions plus actual earnings
thereon. Vesting in the Company's matching contribution portion of their
accounts plus actual earnings thereon occurs upon the participant's completion
of five years of credited service.
Participant Loans
Participants may borrow from their fund accounts subject to the provisions of
the Plan. Loans are limited to the lesser of $50,000 or 50% of the vested amount
in the participant's account, reduced by other outstanding participant loan
balances on the date of the loan. The minimum loan amount is $1,000.
Participants pay interest on such loans at a fixed rate of 1 percentage point
above the prime rate on the date of the loan. Participant loans can be short or
long-term, up to a maximum loan period of 5 years for general purpose loans and
10 years for the purpose of a principal residence. Loan repayments are made
through payroll deduction each pay period. A promissory note in the amount of
the loan must be delivered to VFTC, and in the event of the participant's
termination, the unpaid balance and accrued interest become due immediately
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PROTEIN TECHNOLOGIES INTERNATIONAL SAVINGS
INVESTMENT PLAN
Notes to Financial Statements
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and payable in full.
Payment of Benefits
Plan withdrawals of before-tax contributions may be made prior to termination or
retirement for cases of financial hardship or at the age of 59 1/2. Hardship
distributions are limited to the amount required to meet the need created by the
hardship and are made at the discretion of the Plan administrator. After-tax
contributions and earnings thereon may be withdrawn at any time.
Forfeitures
Upon the participant's termination of employment, any Company matching
contributions and earnings thereon which are not vested will be forfeited, but
will be restored and eligible for additional vesting if the participant again
becomes an eligible employee within five years after termination and completes
the required years of service. Forfeitures, net of amounts restored, are used to
reduce future Company contributions required under the Plan. Forfeitures were
$20,340 and $48,553 for the years ended December 31, 2000 and 1999,
respectively. At December 31, 2000, forfeited non-vested accounts totaled
$83,201.
Plan Termination
The Company may, by action of its Board of Directors, terminate the Plan with
respect to all participating companies. In case of such termination,
participants shall be fully vested in Company matching contributions credited to
their accounts and, subject to Plan provisions and applicable law, the total
amount in each participant's account shall be distributed to the participant or
for the participant's benefit.
Note 2 - Summary of Accounting Policies
The following accounting policies, which conform with accounting principles
generally accepted in the United States, have been used consistently in the
preparation of the Plan's financial statements:
Basis of Accounting
The financial statements of the Plan are prepared under the accrual method of
accounting.
Use of Estimates
The preparation of financial statements, in conformity with accounting
principles generally accepted in the United States, 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, as well as reported amounts of additions and
deductions during the reporting period. Actual results could differ from those
estimates.
Investment Valuation and Income Recognition
The Plan's investments are stated at fair value. Shares of registered investment
companies are valued at quoted market prices which represent the net asset value
of shares held by the Plan at year-end. Units of the Retirement Savings Trust
are valued at net asset value at year-end. The Conoco and DuPont stock funds are
valued at their year-end unit closing prices (comprised of common stock at year-
end market price plus uninvested cash position). Participant loans are valued at
cost which approximates fair value.
Purchases and sales of investments are recorded on a trade-date basis. Interest
income is accrued when earned. Dividend income is recorded on the ex-dividend
date. Capital gain distributions are included in
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PROTEIN TECHNOLOGIES INTERNATIONAL SAVINGS
INVESTMENT PLAN
Notes to Financial Statements
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dividend income.
Payment of Benefits
Benefits are recorded when paid.
Note 3 - Nonparticipant-Directed Investments
Information about the components of the changes in net assets relating to the
DuPont Stock Fund, a nonparticipant-directed investment, is as follows:
Year ended December 31,
2000 1999
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Changes in Net Assets:
Interest & dividend income $ 180,988 $ 79,383
Net appreciation/(depreciation) (1,701,507) 836,651
Contributions 3,819,047 3,225,184
Distributions (418,367) (123,570)
Asset transfers in - 99,127
Transfers 869,640 (104,489)
Other (3,516) 3,464
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$ 2,746,285 $ 4,015,750
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Note 4 - Investments
During 2000 and 1999, the Plan's investments (including gains and losses on
investments bought and sold, as well as held during the year) appreciated
(depreciated) in value as follows:
Year Ended December 31,
2000 1999
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Registered Investment Companies $ (1,502,317) $ 1,178,512
Common Stock (1,679,565) 836,650
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$ (3,181,882) $ 2,015,162
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Note 5 - Related Party Transactions
DuPont, as the parent company of Protein Technologies International, Inc., the
Plan's sponsor, is a related party to the Plan. At December 31, 2000, the Plan
held shares of DuPont common stock with a market value
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PROTEIN TECHNOLOGIES INTERNATIONAL SAVINGS
INVESTMENT PLAN
Notes to Financial Statements
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of $8,700,218. Additionally, the cost of purchases and the proceeds of sales of
DuPont common stock during 2000 were $4,597,027 and $4,250,390, respectively.
The Plan invests in shares of mutual funds managed by an affiliate of VFTC. VFTC
acts as trustee for investments as defined by the Plan. Transactions in such
investments qualify as party-in-interest transactions, which are exempt from the
prohibited transaction rules.
Note 6 - Plan Expenses
The Company pays a portion of expenses related to administering and operating
the Plan. Loan fees are deducted annually from the accounts of participants
with outstanding loan balances.
Note 7 - Tax Status
The Internal Revenue Service has determined and informed the Company by a letter
dated April 24, 2000, that the Plan is a qualified employees' trust under
Section 401(a) of the Internal Revenue Code ("Code"). As such, the Plan is
exempt from federal income taxes under Section 501(a).
Note 8 - Subsequent Event
The Company has announced a voluntary layoff program on February 6, 2001.
Approximately 90 employees will leave the Plan in 2001 under this program and
will become fully vested regardless of their years of service. As a result, the
vesting provision will require an amendment to the Plan.
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PROTEIN TECHNOLOGIES INTERNATIONAL SAVINGS INVESTMENT PLAN Schedule I
Schedule of Assets (Held at End of Year)
As of December 31, 2000
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Protein Technologies International Savings Investment Plan, EIN 43-0470580
Attachment to Form 5500, Schedule H, Part IV, Line i
Identity of Issue Investment Type Current Value
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* Vanguard 500 Index Fund Registered Investment Company $ 12,920,970
* Vanguard Explorer Fund Registered Investment Company 2,293,189
* Vanguard Federal Money Market Fund Registered Investment Company 11,519,889
* Vanguard International Growth Fund Registered Investment Company 2,086,225
* Vanguard Wellington Fund Registered Investment Company 4,455,059
* Vanguard Windsor II Fund Registered Investment Company 5,973,253
* Vanguard Retirement Savings Trust Common/Collective Trust 1,055,487
* Conoco, Inc. Common Stock 169,478
* E.I. DuPont de Nemours and Company, Inc.** Common Stock 8,700,218
Protein Technologies International Savings Investment Plan Participant Loans (7.00%-10.50%) 1,745,380
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Total assets held for investment purposes $ 50,919,148
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Party Interest
* A nonparticipant-directed investment, for which cost is $9,818,534.
8
PROTEIN TECHNOLOGIES INTERNATIONAL SAVINGS INVESTMENT PLAN Schedule II
Schedule of Reportable Transactions *
Year Ended December 31, 2000
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Protein Technologies International Savings Investment Plan, EIN 43-0470580
Attachment to Form 5500, Schedule H, Part IV, Line j
Description of Asset (include Current Value of Historical
Identity of Party interest rate and maturity in Historical Cost of Asset on Gain
Involved the case of a loan) Purchase Price Selling Price Asset Transaction (Loss)
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The Vanguard Group Dupont Stock Fund $ 8,698,071 $ 8,698,071
The Vanguard Group Dupont Stock Fund $ 4,250,390 $ 4,597,027 4,250,390 $ (346,637)
* Nonparticipant-directed transactions or a series of transactions in excess of
5% of the current value of the Plan's assets as of the beginning of the plan
year as defined in section 2520.103-6 of the Department of Labour Rules and
Regulations for Reporting and Disclosure under ERISA.
9