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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, 2001
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 27, 2002
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
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 4-6
Additional Information *
Schedule I - Schedule of Assets (Held at End of Year) 7
* 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,
2001 and 2000, 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
Philadelphia, Pennsylvania
June 14, 2002
PIONEER HI-BRED INTERNATIONAL, INC. SAVINGS PLAN
Statements of Net Assets Available for Benefits
As of December 31,
2001 2000
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Investments, at fair value
Registered investment companies:
T. Rowe Price Foreign Equity Fund $ 3,413,269 $ 4,610,803
T. Rowe Price New Horizons Fund 2,999,509 3,085,499
T. Rowe Price Small-Cap Stock Fund 10,135,579 8,869,316
Vanguard 500 Index Fund 34,086,165 * 38,471,005 *
Vanguard International Growth Fund 2,491,942 2,994,118
Vanguard Prime Money Market Fund 18,122,393 * 15,544,046 *
Vanguard PRIMECAP Fund 17,756,294 * 19,981,870 *
Vanguard Total Bond Market Index Fund 12,606,316 7,548,543
Vanguard Total Stock Market Index Fund 5,196,300 4,943,174
Vanguard Windsor II Fund 6,210,135 4,413,995
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113,017,902 110,462,369
Investment Pools:
Pioneer Hi-Bred International, Inc. Mix 1 20,390,759 * 21,156,825 *
Pioneer Hi-Bred International, Inc. Mix 2 17,876,856 * 18,809,617 *
Pioneer Hi-Bred International, Inc. Mix 3 69,199,945 * 75,582,312 *
Pioneer Hi-Bred International, Inc. Mix 4 39,609,859 * 44,225,185 *
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147,077,419 159,773,939
DuPont Company Stock Fund 10,069,459 10,565,417
Participant Loans 4,950,816 4,899,386
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Net assets available for benefits $275,115,596 $285,701,111
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* Represents an investment that is 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
Year Ended December 31,
2001 2000
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Additions
Investment income:
Interest and dividend income, investments $ 2,809,713 $ 5,531,594
Interest income, participant loans 424,081 389,550
Net depreciation in fair value of investments (21,012,761) (12,329,906)
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(17,778,967) (6,408,762)
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Contributions:
Employer 4,823,397 4,872,424
Participant 16,024,916 16,917,672
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20,848,313 21,790,096
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Total additions 3,069,346 15,381,334
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Deductions
Payment of benefits 13,556,710 13,494,726
Administrative expenses 98,151 127,479
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Total deductions 13,654,861 13,622,205
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Net (decrease) increase (10,585,515) 1,759,129
Net assets available for plan benefits:
Beginning of period 285,701,111 283,941,982
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End of period $ 275,115,596 $ 285,701,111
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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
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.
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").
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
Participants may designate 1% to 15% (increased to 50%, effective January 1,
2002) 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 vested 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 7% to
10.25%, which are commensurate with local prevailing rates as determined by the
Plan administrator (the Company). 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 Plan administrator.
4
PIONEER HI-BRED INTERNATIONAL, INC. SAVINGS PLAN
Notes to Financial Statements
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 $0 and $157,800 were used to offset Company contributions during
the years ended December 31, 2001 and 2000, respectively. At December 31, 2001
and 2000, forfeited nonvested accounts totaled $53,649 and $15,014,
respectively.
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.
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.
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 changes therein, and disclosure of contingent assets and
liabilities. 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 (defined as the year-end market price
of DuPont common stock plus the uninvested cash position). Investment pools are
valued at the net asset value of 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.
5
PIONEER HI-BRED INTERNATIONAL, INC. SAVINGS PLAN
Notes to Financial Statements
NOTE 3 - INVESTMENTS
During 2001 and 2000, the Plan's investments (including gains and losses on
investments bought, sold, and held during the year) depreciated in value as
follows:
Year Ended December 31,
2001 2000
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Registered Investment Companies $(19,941,356) $(10,199,253)
Common Stock Fund (1,071,405) (2,130,653)
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$(21,012,761) $(12,329,906)
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NOTE 4 - RELATED PARTY TRANSACTIONS
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. E. I. du Pont de Nemours
and Company ("DuPont"), as the parent company of the Company, is a related party
to the Plan. The Plan offers the DuPont Company Stock Fund investment option.
Transactions in these investments qualify as party-in-interest transactions
which are exempt from the prohibited transaction rules.
NOTE 5 - PLAN EXPENSES
The Company pays a portion of the expenses for services necessary for the
administration of the Plan.
NOTE 6 - TAX STATUS
The Internal Revenue Service determined and informed the Company by letter dated
July 20, 1995 that the Plan was qualified under Internal Revenue Code ("IRC")
Section 401(a). The Plan has subsequently been amended and restated since
receiving the determination letter. The Plan has filed an application for a new
determination letter, which is currently pending. However, the Company believes
the Plan is designed and is currently being operated in compliance with the
applicable requirements of the IRC.
6
PIONEER HI-BRED INTERNATIONAL, INC. SAVINGS PLAN Schedule I
Schedule of Assets (Held at End of Year)
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 33,856,820
T. Rowe Price New Horizons Fund Registered Investment Company 2,999,509
T. Rowe Price Small-Cap Stock Fund Registered Investment Company 36,752,369
* Vanguard 500 Index Fund Registered Investment Company 87,051,295
* Vanguard International Growth Fund Registered Investment Company 2,491,942
* Vanguard Prime Money Market Fund Registered Investment Company 26,278,697
* Vanguard PRIMECAP Fund Registered Investment Company 17,756,294
* Vanguard Total Bond Market Index Fund Registered Investment Company 41,501,960
* Vanguard Total Stock Market Index Fund Registered Investment Company 5,196,300
* Vanguard Windsor II Fund Registered Investment Company 6,210,135
* E. I. du Pont de Nemours and Company Common Stock 10,069,459
Pioneer Hi-Bred International, Inc. Savings Plan Participant Loans (7.00%-10.25%) 4,950,816
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Total assets $275,115,596
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* Party in Interest
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