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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 FISCAL YEAR ENDED DECEMBER 31, 2000
PIONEER HI-BRED INTERNATIONAL, INC. SAVINGS PLAN
(FULL TITLE OF THE PLAN)
PIONEER HI-BRED INTERNATIONAL, INC.
800 CAPITAL SQUARE 400 LOCUST STREET
DES MOINES, IOWA 50309
(NAME AND ADDRESS OF PRINCIPAL EXECUTIVE OFFICE OF ISSUER)
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Signatures
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Administrative Committee formed under the Pioneer Hi-Bred International, Inc.
Savings Plan has duly caused the Annual Report to be signed by the undersigned
hereunto duly authorized.
Pioneer Hi-Bred International, Inc.
Savings Plan
Dated: June 28, 2001
By: /s/ Frank Ross
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Frank Ross
Vice President & Chief Financial Officer
PIONEER HI-BRED INTERNATIONAL, INC. SAVINGS PLAN
Table of Contents
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Page Number
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Report of Independent Accountants 1
Basic Financial Statements
Statements of Net Assets Available for Benefits 2
Statements 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
* 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
Pioneer Hi-Bred International, Inc. Savings 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 Pioneer Hi-Bred International, Inc. Savings 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 schedule of assets (held
at end of year) is presented for the purpose of additional analysis and is not a
required part of the basic 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
the audits of the basic financial statements and, in our opinion, is fairly
stated in all material respects in relation to the basic financial statements
taken as a whole.
/S/ PRICEWATERHOUSECOOPERS LLP
Minneapolis, Minnesota
June 12, 2001
PIONEER HI-BRED INTERNATIONAL, INC. SAVINGS PLAN
Statements 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:
T. Rowe Price Foreign Equity Fund $ 4,610,803 $ 5,543,553
T. Rowe Price New Horizons Fund 3,085,499 1,384,838
T. Rowe Price Small-Cap Stock Fund 8,869,316 7,434,546
Vanguard 500 Index Fund * 38,471,005 * 43,837,740
Vanguard International Growth Fund 2,994,118 2,746,059
Vanguard Prime Money Market Fund * 15,544,046 * 14,370,770
Vanguard PRIMECAP Fund * 19,981,870 11,971,119
Vanguard Total Bond Market Index Fund 7,548,543 7,102,851
Vanguard Total Stock Market Index Fund 4,943,174 5,518,530
Vanguard Windsor II Fund 4,413,995 3,501,530
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110,462,369 103,411,536
Investment Pools:
Pioneer Hi-Bred International, Inc. Mix 1 * 21,156,825 * 23,470,720
Pioneer Hi-Bred International, Inc. Mix 2 * 18,809,617 * 19,376,383
Pioneer Hi-Bred International, Inc. Mix 3 * 75,582,312 * 79,066,211
Pioneer Hi-Bred International, Inc. Mix 4 * 44,225,185 * 46,248,779
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159,773,939 168,162,093
DuPont Company Stock Fund 10,565,417 7,988,540
Participant Loans 4,899,386 4,379,813
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Net assets available for benefits $ 285,701,111 $ 283,941,982
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* Represents an investment 5% or more of net assets available for benefits.
The accompanying notes are an integral part of the financial statements.
2
PIONEER HI-BRED INTERNATIONAL, INC. SAVINGS PLAN
Statements 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 $ 5,921,144 $ 4,347,012
Net (depreciation) appreciation in fair value of investments (12,329,906) 41,541,588
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(6,408,762) 45,888,600
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Contributions:
Employer 4,872,424 4,833,613
Participant 16,917,672 16,259,388
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21,790,096 21,093,001
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Other additions - 20,136
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Total additions 15,381,334 67,001,737
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Deductions
Payment of benefits 13,494,726 7,985,757
Administrative expenses 127,479 103,025
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Total deductions 13,622,205 8,088,782
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Net increase 1,759,129 58,912,955
Net assets available for plan benefits:
Beginning of period 283,941,982 225,029,027
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End of period $ 285,701,111 $ 283,941,982
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The accompanying notes are an integral part of the financial statements.
3
PIONEER HI-BRED INTERNATIONAL, INC. SAVINGS PLAN
Notes to Financial Statements
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NOTE 1 - DESCRIPTION OF PLAN
The following description of the Pioneer Hi-Bred International, Inc. (the
"Company") Savings Plan (the "Plan") provides only general information.
Participants should refer to their employees' handbooks for a more complete
description of the Plan's provisions. In connection with a purchase transaction
on October 1, 1999, the Company became a wholly owned subsidiary of E. I. du
Pont de Nemours and Company ("DuPont"). Prior to October 1, 1999 the Company was
20% owned by DuPont.
General
The Plan is a defined contribution plan covering all full-time employees and all
temporary employees of the Company who have completed at least 1,000 hours of
service during a consecutive twelve-month period. The Plan is subject to the
provisions of the Employee Retirement Income Security Act of 1974 ("ERISA").
Contributions
Participants may designate 1% to 15% of their eligible earnings up to the annual
maximum amount as stated by the Internal Revenue Service for deposit in the
Plan. In addition, the Company matches participant contributions at a rate of
50% of the first 6% contributed by a participant, up to a maximum of $3,000 per
year.
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. 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
Upon entering the Plan, participants are fully vested in their voluntary
contributions plus earnings thereon. Participants vest in the Company matching
contributions at a rate of 20% per year and are fully vested after five years of
service. Participants also become fully vested if they die, become totally and
permanently disabled, or reach age 65.
Participant Loans
Participants may borrow up to 50% of their account balance, subject to the
Plan's guidelines. The loan shall provide for periodic repayment over a period
not to exceed five years. The loans are collateralized by the balance in the
participant's account and bear interest at rates that range from 8% to 9%, which
are commensurate with local prevailing rates as determined by the Plan
administrator. The interest rate on any participant loan is fixed for the term
of the loan. Principal and interest are paid ratably through payroll deductions.
Payment of Benefits
Upon termination, retirement, death or disability, a participant may elect to
receive a lump-sum distribution equal to the vested value of the participant's
account or, if the account value is greater than $5,000, the participant may
leave the balance in the account and obtain a distribution at a later date. For
accounts with a value of less than $5,000, an immediate lump-sum distribution
may be made at the discretion of the Company.
4
PIONEER HI-BRED INTERNATIONAL, INC. SAVINGS PLAN
Notes to Financial Statements
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Forfeited Accounts
Upon the participant's termination of employment, any Company matching
contributions and the 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 of $157,800 and $0 were used to offset Company contributions during
the years ended December 31, 2000 and 1999, respectively. At December 31, 2000,
forfeited accounts totaled $15,014.
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 100% vested in their accounts.
Plan Expenses
The Company pays a portion of the expenses for services necessary for the
administration of the Plan.
Investment Options
All investments are participant-directed. During the plan years ended December
31, 2000 and 1999, participants were able to allocate their contributions among
the following investment options:
T. Rowe Price Foreign Equity Fund: Seeks long-term growth of capital
through investments, primarily in common stocks of established, non-U.S.
companies, in developed, newly industrialized, and emerging countries.
T. Rowe Price New Horizons Fund: Seeks to provide long-term growth.
Dividend income is incidental.
T. Rowe Price Small-Cap Stock Fund: Seeks long-term growth of capital by
investing primarily in stocks of small to medium-sized companies.
Vanguard 500 Index Fund: Seeks to provide long-term growth of capital and
income from dividends by holding all of the 500 stocks that make up the
unmanaged Standard & Poor's 500 Composite Stock Price Index, a widely
recognized benchmark of U.S. stock market performance.
Vanguard International Growth Fund: Seeks to provide long-term growth of
capital by investing in stocks of high-quality, seasoned companies based
outside the United States. Stocks are selected from more than 15 countries.
Vanguard Prime Money Market Fund: Seeks to provide high income and a stable
share price of $1 by investing in short-term, high-quality money market
instruments issued by financial institutions, nonfinancial corporations,
the U.S. government, and federal agencies.
Vanguard PRIMECAP Fund: Seeks long-term growth of capital by investing in
stocks of companies with above-average prospects for continued earnings
growth, strong industry positions, and skilled management teams.
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PIONEER HI-BRED INTERNATIONAL, INC. SAVINGS PLAN
Notes to Financial Statements
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Vanguard Total Bond Market Index Fund: Seeks to provide a high level of
interest income by attempting to match the performance of the unmanaged
Lehman Brothers Aggregate Bond Index, which is a widely recognized measure
of the entire taxable U.S. bond market.
Vanguard Total Stock Market Index Fund: Seeks to provide long-term growth
of capital and income by attempting to match the investment results of the
Wilshire 5000 Equity Index, an unmanaged index that covers all regularly
traded U.S. stocks.
Vanguard Windsor II Fund: Seeks to provide long-term growth of capital and
income from dividends by investing in a diversified group of out-of-favor
stocks of large-capitalization companies. The stocks generally sell at
prices below the overall market average compared to their dividend income
and future return potential.
Pioneer Hi-Bred International, Inc. Mix 1: An institutional investment pool
that invests in the following registered investment companies: T. Rowe
Price Foreign Equity Fund, Vanguard 500 Index Fund, Vanguard Prime Money
Market Fund, and Vanguard Total Bond Market Index Fund.
Pioneer Hi-Bred International, Inc. Mix 2: An institutional investment pool
that invests in the following registered investment companies: T. Rowe
Price Foreign Equity Fund, T. Rowe Price Small-Cap Stock Fund, Vanguard 500
Index Fund, and Vanguard Total Bond Market Index Fund.
Pioneer Hi-Bred International, Inc. Mix 3: An institutional investment pool
that invests in the following registered investment companies: T. Rowe
Price Foreign Equity Fund, T. Rowe Price Small-Cap Stock Fund, Vanguard 500
Index Fund, and Vanguard Total Bond Market Index Fund.
Pioneer Hi-Bred International, Inc. Mix 4: An institutional investment pool
that invests in the following registered investment companies: T. Rowe
Price Foreign Equity Fund, T. Rowe Price Small-Cap Stock Fund, and Vanguard
500 Index Fund.
Each of the four pre-defined Mixes consists of a different percentage of
the registered investment companies, has a different level of expected
volatility, is diversified because each is composed of a combination of the
individual registered investment companies, and is periodically re-
balanced.
DuPont Company Stock Fund: Seeks to provide the possibility of long-term
growth through increases in the value of DuPont stock and the reinvestment
of its dividends.
NOTE 2 - SUMMARY OF ACCOUNTING POLICIES
The following accounting policies, which conform to accounting principles
generally accepted in the United States of America, 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.
6
PIONEER HI-BRED INTERNATIONAL, INC. SAVINGS PLAN
Notes to Financial Statements
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Use of Estimates
The preparation of financial statements, in conformity with accounting
principles generally accepted in the United States of America, 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. The DuPont Company Stock Fund is
valued at its year-end unit closing price (comprised of year-end market price
plus uninvested cash position). Investment pools are valued at the net asset
value of its underlying investments and other assets and liabilities.
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 dividend income.
Payment of Benefits
Benefits are recorded when paid.
NOTE 3 - INVESTMENTS
During 2000 and 1999, the Plan's investments (including gains and losses on
investments bought, sold, and held during the year) (depreciated) appreciated in
value as follows:
Year Ended December 31,
2000 1999
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Registered Investment Companies $ (10,199,253) $ 34,846,286
Common Stock (2,130,653) 6,695,302
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$ (12,329,906) $ 41,541,588
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NOTE 4 - RELATED PARTY TRANSACTIONS
The Plan invests in shares of mutual funds managed by an affiliate of Vanguard
Fiduciary Trust Company ("VFTC"). VFTC acts as trustee for investments as
defined by the Plan. Transactions in such investments qualify as party-in-
interest transactions and are exempt from the prohibited transaction rules.
NOTE 5 - TAX STATUS
The Internal Revenue Service has determined and informed the Company by letter
dated July 20, 1995 that the Plan is qualified under Internal Revenue Code
("IRC") Section 401(a). The Plan has been amended since receiving the
determination letter. However, the Company believes the Plan is designed and is
currently being operated in compliance with the applicable requirements of the
IRC.
7
PIONEER HI-BRED INTERNATIONAL, INC. SAVINGS PLAN Schedule I
Schedule of Assets (Held at End of Year)
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Pioneer Hi-Bred International, Inc. Savings Plan, EIN 51-0391677
Attachment to Form 5500, Schedule H, Part IV, line i
Identity of Issue Investment Type Current Value
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T. Rowe Price Foreign Equity Fund Registered Investment Company $ 37,723,287
T. Rowe Price New Horizons Fund Registered Investment Company 3,085,499
T. Rowe Price Small-Cap Stock Fund Registered Investment Company 39,420,608
Vanguard 500 Index Fund Registered Investment Company 94,918,064
Vanguard International Growth Fund Registered Investment Company 2,994,118
Vanguard Prime Money Market Fund Registered Investment Company 24,109,747
Vanguard PRIMECAP Fund Registered Investment Company 19,981,870
Vanguard Total Bond Market Index Fund Registered Investment Company 38,645,946
Vanguard Total Stock Market Index Fund Registered Investment Company 4,943,174
Vanguard Windsor II Fund Registered Investment Company 4,413,995
E.I. du Pont de Nemours and Company. Common Stock 10,565,417
Pioneer Hi-Bred International, Inc. Savings Plan Participant loans (8.00% - 9.00%) 4,899,386
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Total assets $ 285,701,111
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* Party in Interest
8