FORM 11-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
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ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 |
For the Year Ended December 31, 2008
OR
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TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number 1-3880
NATIONAL FUEL GAS COMPANY
TAX-DEFERRED SAVINGS PLAN
FOR NON-UNION EMPLOYEES
(Full title of the Plan)
NATIONAL FUEL GAS COMPANY
(Name of issuer of the securities held pursuant to the Plan)
6363 Main Street, Williamsville, New York 14221
(Address of principal executive office)
REQUIRED INFORMATION
1. |
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Plan financial statements and schedules prepared in accordance with financial reporting
requirements of ERISA. |
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See accompanying Index on next page. |
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2. |
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Signatures |
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3. |
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Exhibit |
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Exhibit Number |
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Description of Exhibit |
23
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Consent of Independent Registered Public Accounting Firm |
NATIONAL FUEL GAS COMPANY
TAX-DEFERRED SAVINGS PLAN
FOR NON-UNION EMPLOYEES
INDEX TO FINANCIAL STATEMENTS AND SCHEDULE
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Number |
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Report of Independent Registered Public Accounting Firm |
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1 |
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Financial Statements: |
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Statements of Net Assets Available for
Benefits at December 31, 2008 and 2007 |
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2 |
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Statements of Changes in Net Assets
Available for Benefits for the Years Ended
December 31, 2008 and 2007 |
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3 |
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Notes to Financial Statements |
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4 - 11 |
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Supplemental Schedule: |
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Schedule of Assets (Held at End of Year) as of December 31, 2008 |
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12 |
Report of Independent Registered Public Accounting Firm
To the Participants and
Plan Administrator of the
National Fuel Gas Company
Tax-Deferred Savings Plan for
Non-Union Employees
We have audited the accompanying statements of net assets available for benefits of the National
Fuel Gas Company Tax-Deferred Savings Plan for Non-Union Employees as of December 31, 2008 and
2007, and the related statements of changes in net assets available for benefits for the years then
ended. These financial statements are the responsibility of the Plans management. Our
responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards as established by
the Auditing Standards Board (United States) and in accordance with the auditing 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. The Plan is not required to have, nor were we engaged to perform,
an audit of its internal control over financial reporting. Our audit 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 Plans 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, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the net assets available for benefits of the National Fuel Gas Company Tax-Deferred
Savings Plan for Non-Union Employees as of December 31, 2008 and 2007, 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.
Our audits were performed for the purpose of forming an opinion on the basic financial statements
taken as a whole. The accompanying supplemental schedule 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 Labors Rules and Regulations for Reporting
and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental
schedule is the responsibility of the Plans management. The supplemental schedule has been
subjected to the auditing procedures applied in the audits of the financial statements and, in our
opinion, is fairly stated in all material respects in relation to the basic financial statements
taken as a whole.
Bonadio & Co., LLP
June 25, 2009
Williamsville, New York
1
NATIONAL FUEL GAS COMPANY
TAX-DEFERRED SAVINGS PLAN
FOR NON-UNION EMPLOYEES
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
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December 31, |
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2008 |
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2007 |
Assets: |
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Investments at fair value: |
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National Fuel Gas Company Employee
Stock Ownership Plan (ESOP) Fund |
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$ |
80,017,420 |
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$ |
116,282,146 |
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Vanguard 500 Index Fund |
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31,292,575 |
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51,379,091 |
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Vanguard Retirement Savings Trust |
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16,013,738 |
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14,912,436 |
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Vanguard Total Bond Market Index Fund |
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15,671,130 |
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13,742,047 |
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Vanguard Prime Money Market Fund |
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7,877,263 |
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8,629,131 |
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Vanguard European Stock Index Fund |
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5,870,766 |
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12,031,576 |
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Vanguard STAR Fund |
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5,055,816 |
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6,152,814 |
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Vanguard Extended Market Index Fund |
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4,961,834 |
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9,215,001 |
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Vanguard Pacific Stock Index Fund |
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2,881,884 |
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4,406,718 |
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Participant Loan Account |
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2,219,317 |
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2,387,943 |
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171,861,743 |
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239,138,903 |
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Receivables: |
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Employer Contributions |
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268,640 |
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251,590 |
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Participant Contributions |
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5,483 |
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173,708 |
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Dividends Receivable |
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53,216 |
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45,719 |
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Total Assets |
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172,189,082 |
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239,609,920 |
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Liabilities: |
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Dividends Payable to Participants |
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53,216 |
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45,719 |
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Net Assets Available for Benefits at Fair
Value |
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172,135,866 |
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239,564,201 |
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Adjustment from Fair Value to Contract
Value for Fully Benefit-Responsive
Investment Contracts |
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209,352 |
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(112,832 |
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Net Assets Available for Benefits |
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$ |
172,345,218 |
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$ |
239,451,369 |
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The accompanying notes are an integral part of these financial statements
2
NATIONAL FUEL GAS COMPANY
TAX-DEFERRED SAVINGS PLAN
FOR NON-UNION EMPLOYEES
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007
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December 31, |
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2008 |
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2007 |
Investment Income From National Fuel Gas Company
ESOP Fund |
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$ |
3,157,401 |
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$ |
3,063,055 |
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Interest and Dividend Income |
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800,114 |
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820,153 |
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Investment Income from Mutual Funds |
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2,829,021 |
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2,886,100 |
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Total Investment Income |
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6,786,536 |
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6,769,308 |
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Net Appreciation (Depreciation) in Fair Value of
Investments |
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(69,182,723 |
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25,048,663 |
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Employer Contributions |
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3,149,859 |
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2,976,042 |
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Participant Contributions |
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6,992,841 |
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6,637,758 |
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Participant Purchase and Loan Fees |
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(10,980 |
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(5,345 |
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Rollovers and Other Individual Transfers Out |
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323,481 |
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170,150 |
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Dividend Payments to Participants |
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(187,167 |
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(85,111 |
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Payments to Participants or Beneficiaries |
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(14,977,998 |
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(16,155,922 |
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Increase (Decrease) In Net Assets Available for Benefits |
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(67,106,151 |
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25,355,543 |
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Net Assets Available for Benefits: |
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Beginning of Year |
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239,451,369 |
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214,095,826 |
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End of Year |
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$ |
172,345,218 |
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$ |
239,451,369 |
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The accompanying notes are an integral part of these financial statements
3
NATIONAL FUEL GAS COMPANY
TAX-DEFERRED SAVINGS PLAN
FOR NON-UNION EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
NOTE 1 DESCRIPTION OF PLAN
General:
The following is a brief description of the National Fuel Gas Company Tax-Deferred Savings
Plan For Non-Union Employees (the Plan) provided for general information purposes only.
Participants should refer to the Plan document for more complete information. The Plan is a
defined contribution plan as permitted under Section 401(k) of the Internal Revenue Code. The Plan
was adopted July 26, 1984, effective as of July 1, 1984, and has been amended and restated since
that time. It is subject to the Employee Retirement Income Security Act of 1974 (ERISA), as
amended.
During 2003, the Board of Directors of the Company approved the merger of the National Fuel
Gas Company Employees Thrift Plan (the Thrift Plan) into the Plan, in part, and into another
plan, in part. Specifically, the account balances contained in the Thrift Plans Government Bond
Fund and the Pooled Investment Contract Fund were merged into the Plan. The account balances
containing the employer directed investment fund of the Thrift Plan, which consisted of National
Fuel Gas Company Common Stock, were merged into another plan. The merger was effective as of
August 1, 2003. Funds previously invested in the Government Bond Fund were initially invested in
the Vanguard Total Bond Market Index Fund, and funds previously invested in the Pooled Investment
Contract Fund were initially invested in the Vanguard Retirement Savings Trust. Former Thrift Plan
participants have the option to move these funds into other investment options offered by the Plan
and retain the same rights and features of the former Thrift Plan. Former Thrift Plan funds are
kept separate from any funds that a participant invests directly into the Plan.
Effective July 1, 2003, an additional Retirement Savings Account benefit was provided to
certain participants in the Plan. Participants should refer to the Plan document for more complete
information.
Effective September 28, 2007, the Plan was amended such that the portion of the Trust invested
in National Fuel Gas Company Stock Fund A and National Fuel Gas Company Stock Fund B was designated
as an Employee Stock Ownership Plan (ESOP). The ESOP portion of the Plan is intended to be a
stock bonus plan as defined in Treasury Regulations section 1.401-1(b)(1)(iii) and a non-leveraged
employee stock ownership plan under the requirements of sections 401(a) and 4975(e) of the Internal
Revenue Code. Cash dividends paid with respect to shares of stock held in the ESOP as of the
record date for such dividends shall be, at the election of the participant or beneficiary, either
(i) paid or distributed in cash to the participant or beneficiary, or (ii) paid to the applicable
National Fuel Gas Company ESOP Fund and reinvested in National Fuel Gas Company common stock.
Except with respect to hardship withdrawals, if a participant or beneficiary fails to make a proper
election with respect to a dividend, the participant or beneficiary shall be deemed to have elected
to have the dividend paid to the applicable National Fuel Gas Company ESOP Fund and reinvested in
National Fuel Gas Company common stock.
Eligibility and Participation:
Originally, the Plan was established for the benefit of professional, administrative or
executive (i.e. salaried) employees of National Fuel Gas Company and its subsidiaries (the
Company). Persons who were salaried employees on July 1, 1984, were eligible to participate at
that date. Effective on various dates since July 1, 1984, most non-union non-salaried employees of
the Company became eligible to participate in the Plan. New employees must complete 1,000 hours of
employment and have attained age 21 in order to become eligible to participate. There are four
groups of non-union employees who are eligible to participate in the Plan. Employer contributions
vary by group and employees years of service and contribution. Certain Plan participants who have
completed 12 months of employment, including at least 1,000 hours of service, attained age 21, and
whose first hour of service with the Company is credited on or after July 1, 2003 are eligible for
an additional Retirement Savings Account benefit. Effective as of July 1, 2005, part-time
employees known as Customer Support Representative I or Customer Support Representative II are
not eligible to make salary reduction contributions to the Plan.
4
Contributions:
Participants may direct the Company to reduce their base salaries by a specified full
percentage that ranges from 2% to 50%. These salary reductions are subject to certain Plan and
Internal Revenue Code limitations, and the Company remits them to the Plan Trustee on the
participants behalf. Participants may also contribute amounts representing distributions from
other qualified defined benefit or defined contribution plans. Participants direct the investment
of their contributions into various investment options offered by the Plan. Participants may
change their investment allocation on a daily basis. In addition, the Company makes an employer
matching contribution that ranges from 1% to 6% of the participants base salary, depending on
their participant group, years of service and rate of salary reduction contributions. Beginning
January 2004, participants eligible for the Retirement Savings Account benefit will receive a
Company contribution of 2% or 3% of the participants compensation (in addition to any employer
matching contribution under the Plan), depending on the participants years of service. The
Company contribution in the Retirement Savings Account is participant directed and can be directed
into any of the Plans investment options except for the Common Stock of National Fuel Gas Company.
Base salary is defined in the Plan generally to mean a participants base annual salary for
a payroll period. An individual participants salary reduction contributions to the Plan are
subject to ceilings imposed by the Internal Revenue Service. However, the Company matching
contributions are not subject to such ceilings. The ceiling is $16,500 for 2009 compared to
$15,500 for 2008. If a participant is age 50 or over, the ceiling increases to $22,000 for 2009
compared to $20,500 for 2008.
Participants accounts, including all salary reduction contributions, employer matching
contributions, and the earnings thereon, are at all times fully vested and nonforfeitable.
Participants accounts within the Retirement Savings Account are 100% vested following five years
of service for all pre-January 1, 2007 employer contributions, and following three years of service
for all employer contributions thereafter. Forfeitures will be used to reduce Company
contributions. There were no forfeitures for the year ended December 31, 2008. Forfeitures
amounted to $2,382 for the year ended December 31, 2007. Unused forfeitures amounted to $7,240
and $7,044 at December 31, 2008 and 2007, respectively.
Employer Matching Contributions:
Employer matching contributions are invested in a fund consisting primarily of the common
stock of National Fuel Gas Company (National Fuel Gas Company ESOP Fund). This fund also maintains
a small cash position in Vanguard Prime Money Market Fund and may also include receivables and/or
payables for unsettled security transactions and receivables for accrued dividends. A separate
account is maintained for each participant showing his/her interest in this fund.
Effective January 1, 2007, participants may exchange all or a portion of their National Fuel
Gas Company common stock (National Fuel Gas Company ESOP Fund) for an interest in another fund.
Withdrawals, Loans and Distributions:
Plan participants (or their beneficiaries) may receive distributions from the Plan upon death,
retirement, disability or other termination, in accordance with a qualified domestic relations
order, or in the event of hardship, subject to the Plans limitations and restrictions.
Additionally, Plan participants may borrow from their accounts in accordance with certain Plan
rules. In certain cases, participants may postpone receipt of Plan distributions.
Former Thrift Plan Participants may, at any time, withdraw the entire value of those amounts
transferred to the Plan.
Participant Accounts:
Each participants account is credited with the participants contribution and an allocation
of (a) the Companys contribution, (b) Plan earnings, and (c) investment fees. 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 participants account.
5
Administration:
A Tax-Deferred Savings Plan Committee appointed by the Chief Executive Officer is the
Administrator of the Plan. The assets of the Plan are held by the Trustee, Vanguard Fiduciary
Trust Company (Vanguard).
Plan Termination:
National Fuel Gas Company reserves the right in its discretion to amend, suspend,
or terminate the Plan at such time as it deems appropriate, subject to the provisions of ERISA. In the event that the Plan is terminated, participants are entitled to
all salary reduction contributions, employer matching contributions and earnings thereon within their accounts. Participants with a Retirement Savings Account are entitled to the vested portion of such account.
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting:
The accompanying financial statements have been prepared in conformity with accounting
principles generally accepted in the United States.
As described in Financial Accounting Standards Board (FASB) 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. The
Plan invests in investment contracts through a common/collective trust. As required by the FSP,
the Statement of Net Assets Available for Benefits presents the fair value of the investment in the
common/collective trust as well as the adjustment of the investment in the common/collective trust
from fair value to contract value relating to the investment contracts. The Statement of Changes
in Net Assets Available for Benefits is prepared on a contract value basis. The requirement of the
FSP was applied to the Statement of Net Assets Available for Benefits as of December 31, 2006.
Adoption of the FSP had no effect on the Statement of Changes in Net Assets Available for Benefits
for any period presented.
Investment Valuation and Income Recognition:
Investments are reported at fair value. Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly transaction between market participants at
the measurement date. See Note 3 for discussion of fair value measurements.
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 investment income.
Risks and Uncertainties:
The Plan invests in various investment securities. 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 the values
of investment securities will occur in the near term and that such changes could materially affect
participants account balances and the amounts reported in the Statement of Net Assets Available
for Benefits.
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 changes therein, and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of additions and
deductions during the reporting period. Actual results could differ from those estimates.
6
Administrative expenses:
Expenses related to administration of the Plan and Trust are borne by the Company. The
Company paid Vanguard $32,618 and $30,749 for services rendered in connection with the Plan and
Trust for the years ended December 31, 2008 and December 31, 2007, respectively. Brokerage
commissions and similar costs of acquiring or selling securities (if any) that are incurred by the
investment funds are borne by the participant. Loan origination fees and annual maintenance fees
for each loan are also borne by the participant.
Payments of Benefits:
Benefit payments to participants are recorded upon distribution.
NOTE 3 FAIR VALUE MEASUREMENTS
On January 1, 2008, the Plan adopted the provisions of Statement of Financial Accounting
Standards No. 157, Fair Value Measurements (SFAS 157). SFAS 157 provides guidance for using fair
value to measure assets and liabilities. The pronouncement serves to clarify the extent to which
companies measure assets and liabilities at fair value, the information used to measure fair value,
and the effect the fair-value measurements have on earnings. SFAS 157 is to be applied whenever
another standard requires or allows assets or liabilities to be measured at fair value. SFAS 157
establishes a fair-value hierarchy, which prioritizes the inputs used in valuation techniques that
measure fair value. Those inputs are prioritized into three levels. Level 1 inputs are unadjusted
quoted prices in active markets for assets or liabilities that the Plan has the ability to access
at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level
1 that are observable for the asset or liability, either directly or indirectly at the measurement
date. Level 3 inputs are unobservable inputs for the asset or liability at the measurement date.
The Plans assessment of the significance of a particular input to the fair value measurement
requires judgment, and may affect the valuation of fair value assets and liabilities and their
placement within the fair value hierarchy levels. The adoption of SFAS 157 has not had a
significant impact on the Plans financial statements.
The following table sets forth, by level within the fair value hierarchy, the Plans
investments that were accounted for at fair value on a recurring basis as of December 31, 2008. As
required by SFAS 157, financial assets and liabilities are classified in their entirety based on
the lowest level of input that is significant to the fair value measurement.
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Recurring Fair Value Measures: |
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At fair value as of December 31, 2008 |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Investments: |
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National Fuel Gas Company
ESOP Fund |
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$ |
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$ |
80,017,420 |
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$ |
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$ |
80,017,420 |
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Mutual Funds |
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73,611,268 |
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73,611,268 |
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Common/Collective Trust Fund |
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16,013,738 |
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16,013,738 |
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Participant Loan Fund |
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2,219,317 |
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2,219,317 |
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Total |
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$ |
73,611,268 |
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$ |
96,031,158 |
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$ |
2,219,317 |
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$ |
171,861,743 |
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The fair value of the National Fuel Gas Company ESOP Fund is primarily based on the quoted
market value of National Fuel Gas Company common stock as well as the value of cash positions, such
as money market instruments, and receivables at the close of the Plan year. The mutual funds
reported in Level 1 are SEC registered investments. The fair values of the Plans mutual funds are
based on quoted market prices as these instruments have active markets. The fair value of the
Plans interest in investment contracts through a common/collective trust is based on information
reported by the investment advisor using the audited financial statements of the common/collective
trust at year-end. These audited financial statements reported the majority of the investments of
the common/collective trust in Level 2, which was the lowest level of input significant to the fair
value measurement. Participant loans are valued at their outstanding balances, an unobservable
input, which approximates fair value.
7
The preceding methods described may produce a fair value calculation that may not be
indicative of net realizable value or reflective of future fair values. Furthermore, although the
Plan believes its valuation methods are appropriate and consistent with other market participants,
the use of different methodologies or assumptions to determine the fair value of certain financial
instruments could result in a different fair value measurement at the reporting date.
The table listed below provides a reconciliation of the beginning and ending balances for the
Plans assets measured at fair value and classified as Level 3 for the year ended December 31,
2008.
|
|
|
|
|
Fair Value Measurements Using Unobservable Inputs (Level 3) |
|
Participant Loans |
|
|
|
|
|
|
Balance as of January 1, 2008 |
|
$ |
2,387,943 |
|
Issuances, Repayments and Settlements, Net |
|
|
(168,626 |
) |
|
|
|
|
Balance as of December 31, 2008 |
|
$ |
2,219,317 |
|
|
|
|
|
NOTE 4 INCOME TAXES
The Internal Revenue Service has determined in a letter dated September 9, 2002 that the Plan
and related trust are designed in accordance with applicable sections of the Internal Revenue Code.
Accordingly, no provision for income taxes has been recorded. Although the Plan has been amended
since receiving the determination letter, the Plan administrator and the Plans tax counsel believe
that the Plan is designed and is currently being operated in compliance with the applicable
requirements of the Internal Revenue Code.
NOTE 5 PARTIES-IN-INTEREST
The Plan invests in shares of mutual funds managed by an affiliate of Vanguard Fiduciary Trust
Company (VFTC). VFTC acts as trustee for only those investments as defined by the Plan. The Plan
also invests in common stock of National Fuel Gas Company. Transactions in such investments
qualify as party-in-interest transactions, which are exempt from the prohibited transaction rules.
Investment income from parties-in-interest amounted to $6,786,536 and $6,769,308 for the years
ended December 31, 2008 and December 31, 2007, respectively.
NOTE 6 INVESTMENTS
The following investments comprised more than 5% of Plan assets at:
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
2008 |
|
2007 |
|
|
|
|
|
|
|
|
|
National Fuel Gas Company ESOP
Fund (Participant Directed) |
|
$ |
80,017,420 |
|
|
$ |
116,282,146 |
|
Vanguard 500 Index Fund |
|
|
31,292,575 |
|
|
|
51,379,091 |
|
Vanguard Retirement Savings Trust |
|
|
16,013,738 |
|
|
|
14,912,436 |
|
Vanguard Total Bond Market Index Fund |
|
|
15,671,130 |
|
|
|
13,742,047 |
|
Vanguard European Stock Index Fund* |
|
|
5,870,766 |
|
|
|
12,031,576 |
|
|
|
|
* |
|
Note: The Vanguard European Stock Index Fund listed above, represents more than 5% of Plan assets
for the year ended December 31, 2007, but not for the year ended December 31, 2008. It is listed
here for comparative purposes. |
8
The net appreciation (depreciation) in fair value of investments including realized gains
(losses) on investments sold during the years ended December 31, 2008 and 2007 are as follows:
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended |
|
|
|
December 31, |
|
|
|
2008 |
|
|
2007 |
|
|
|
|
|
|
|
|
|
|
National Fuel Gas Company ESOP
Fund (Participant Directed) |
|
$ |
(37,157,342 |
) |
|
$ |
21,938,667 |
|
Vanguard 500 Index Fund |
|
|
(19,558,240 |
) |
|
|
1,737,095 |
|
Vanguard European Stock Index Fund |
|
|
(5,364,350 |
) |
|
|
975,198 |
|
Vanguard Extended Market Index Fund |
|
|
(3,337,771 |
) |
|
|
187,703 |
|
Vanguard STAR Fund |
|
|
(2,197,391 |
) |
|
|
(95,666 |
) |
Vanguard Pacific Stock Index Fund |
|
|
(1,560,951 |
) |
|
|
78,438 |
|
Vanguard Total Bond Market Index Fund |
|
|
(6,678 |
) |
|
|
227,228 |
|
|
|
|
|
|
|
|
|
|
$ |
(69,182,723 |
) |
|
$ |
25,048,663 |
|
|
|
|
|
|
|
|
NOTE 7 INVESTMENT PROGRAMS
The funds listed below are the investment options for salary reduction contributions as of
December 31, 2008.
National Fuel Gas Company ESOP Fund:
The National Fuel Gas Company ESOP Fund seeks long-term growth of capital. The fund invests
in National Fuel Gas Company common stock to provide investors the possibility of long-term growth
through increases in the value of the stock and the reinvestment of dividends. A small portion of
the fund may also be invested in cash investments, such as money market instruments, to help
accommodate daily transactions.
Vanguard 500 Index Fund:
The Vanguard 500 Index Fund seeks to track the performance of a benchmark index that measures
the investment return of large-capitalization stocks. The fund employs a passive management or
indexing investment approach designed to track the performance of the Standard & Poors 500 Index,
a widely recognized benchmark of U.S. stock market performance that is dominated by the stocks of
large U.S. companies. The fund attempts to replicate the target index by investing all, or
substantially all, of its assets in the stocks that make up the index, holding each stock in
approximately the same proportion as its weighting in the index.
Vanguard Retirement Savings Trust:
The Vanguard Retirement Savings Trust seeks to provide current and stable income, while
maintaining a stable share value of $1. The fund invests primarily in investment contracts issued
by insurance companies, banks or other financial institutions, including investment contracts
backed by high-quality fixed income securities. The fund seeks to achieve its objective by
diversifying among high credit-quality investments and investment contracts, which are structured
to smooth market gains and losses over time.
Vanguard Total Bond Market Index Fund:
The Vanguard Total Bond Market Index Fund seeks to track the performance of a broad,
market-weighted bond index. The fund employs a passive management or indexing investment
designed to track the performance of the Lehman Brothers Aggregate Bond Index. This index measures
a wide spectrum of public, investment-grade, taxable, fixed income securities in the United States.
This includes government, corporate, and international dollar-denominated bonds, as well as
mortgage-backed and asset-backed securities, all with maturities of more than one year.
Vanguard European Stock Index Fund:
The Vanguard European Stock Index Fund seeks to track the performance of a benchmark index
that measures the investment return of stocks issued by companies located in the major markets of
Europe. The fund employs a passive management or indexing investment approach by investing all,
or substantially all, of its assets
9
in the common stocks included in the Morgan Stanley Capital International (MSCI) Europe Index. The
MSCI Europe Index is made up of common stocks of companies located in sixteen European countries,
mostly companies in the United Kingdom, France, Switzerland, and Germany. Other countries
represented in the index include Austria, Belgium, Denmark, Finland, Greece, Ireland, Italy, the
Netherlands, Norway, Portugal, Spain, and Sweden.
Vanguard Extended Market Index Fund:
The Vanguard Extended Market Index Fund seeks to track the performance of a benchmark index
that measures the investment return of small and mid-capitalization stocks. The fund employs a
passive management or indexing investment approach designed to track the performance of the
Standard & Poors Completion Index, a broadly diversified index of small and medium sized U.S.
companies. The Standard & Poors Completion Index contains all of the U.S. common stocks regularly
traded on the New York and American Stock Exchanges, and the NASDAQ over-the-counter market, except
those stocks included in the Standard & Poors 500 Index. The fund invests all, or substantially
all, of its assets in stocks of its target index, with nearly 80% of its assets invested in the
1,200 largest stocks in its target index (covering nearly 80% of the indexs total market
capitalization), and the rest of its assets in a representative sample of the remaining stocks.
Vanguard Prime Money Market Fund:
The Vanguard Prime Money Market Fund seeks to provide current income while maintaining
liquidity and a stable share price of $1. The fund invests in high-quality, short-term money
market instruments, including certificates of deposit, bankers acceptances, commercial paper, and
other money market securities. To be considered high-quality, a security generally must be rated
in one of the two highest credit-quality categories for short-term securities by at least two
nationally recognized rating services (or by one, if only one rating service has rated the
security). If not rated, the security must be determined by Vanguard to be of quality equivalent
to those in the two highest credit-quality categories. The fund will invest more than 25% of its
assets in securities issued by companies in the financial services industry. The fund will
maintain a dollar-weighted average maturity of 90 days or less.
Vanguard STAR Fund:
The Vanguard STAR Fund seeks to provide long-term capital appreciation and income. The STAR
Fund invests in a diversified group of other Vanguard mutual funds, rather than in individual
securities. The fund follows a balanced investment approach by placing 60% to 70% of its assets in
common stocks through eight stock funds; 20% to 30% of its assets in bonds through two bond funds;
and 10% to 20% of its assets in short-term investments through a short-term bond fund. The funds
stock holdings emphasize large-capitalization stocks of domestic companies and, to a lesser extent,
a diversified group of stocks in companies located outside the United States. The funds bond
holdings focus predominately on short and long-term investment-grade corporate bonds and GNMA
mortgage-backed securities.
Vanguard Pacific Stock Index Fund:
The Vanguard Pacific Stock Index Fund seeks to track the performance of a benchmark index that
measures the investment return of stocks issued by companies located in the major markets of the
Pacific region. The fund employs a passive management or indexing investment approach by
investing all, or substantially all, of its assets in the common stocks included in the MSCI
Pacific Index. The MSCI Pacific Index consists of common stocks of companies located in Japan,
Australia, Hong Kong, Singapore, and New Zealand.
NOTE 8 RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for benefits per the financial
statements at December 31, 2008 and 2007 to Form 5500:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2008 |
|
2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets available for benefits per the financial statements |
|
$ |
172,345,218 |
|
|
$ |
239,451,369 |
|
|
|
|
|
Adjustment from contract value to fair value for fully
benefit-responsive investment contracts |
|
|
(209,352 |
) |
|
|
112,832 |
|
|
|
|
|
|
|
|
Net assets available for benefits per Form 5500 |
|
$ |
172,135,866 |
|
|
$ |
239,564,201 |
|
|
|
|
|
|
|
|
10
The following is a reconciliation of the statement of changes in net assets available for
benefits per the financial statements at December 31, 2008 and 2007 to Form 5500:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2008 |
|
2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in net assets available for benefits per
the financial statements |
|
$ |
(67,106,151 |
) |
|
$ |
25,355,543 |
|
|
|
|
|
Change in adjustment from contract value to fair value
for fully benefit-responsive investment contracts |
|
|
(322,184 |
) |
|
|
239,858 |
|
|
|
|
|
|
|
|
Increase (decrease) in net assets available for benefits
per Form 5500 |
|
$ |
(67,428,335 |
) |
|
$ |
25,595,401 |
|
|
|
|
|
|
|
|
NOTE 9 RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In June 2006, the FASB issued Interpretation No. 48, Accounting for Uncertainty in Income
Taxes an interpretation of FASB Statement No. 109, Accounting for Income Taxes (FIN 48). This
interpretation addresses the determination of whether tax benefits claimed or expected to be
claimed on a tax return should be recorded in the financial statements, and applies to all
entities, including employee benefit plans. In accordance with FASB Staff Position No. FIN 48-3,
the Company has elected to defer the application of FIN 48 for the Plan until 2009, and currently
accounts for evaluating uncertain tax positions in accordance with generally accepted accounting
principles related to accounting for contingencies. The Company is currently evaluating the impact
of adopting the provisions of FIN 48, but does not anticipate it will have a material effect on the
Plans financial statements.
11
SCHEDULE I
NATIONAL FUEL GAS COMPANY
TAX-DEFERRED SAVINGS PLAN FOR NON-UNION EMPLOYEES
SCHEDULE OF ASSETS (HELD AT END OF YEAR)
DECEMBER 31, 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) Description of Investment |
|
|
|
|
|
|
(b) Identity of Issue, |
|
Including Maturity Date, Rate |
|
|
|
|
|
|
Borrower, Lessor |
|
of Interest, Collateral, Par |
|
|
|
(e) Current |
(a) |
|
or Similar Party |
|
or Maturity Value |
|
(d) Cost |
|
Value |
|
|
|
|
|
|
|
|
|
|
|
*
|
|
National Fuel Gas Company
|
|
ESOP Fund (3,583,718 units)
|
|
**
|
|
$ |
80,017,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mutual Funds: |
|
|
|
|
|
|
|
|
*
|
|
Vanguard Group of
Investment Companies
|
|
500 Index Fund
(376,611 units)
|
|
**
|
|
|
31,292,575 |
|
|
|
|
|
|
|
|
|
|
|
|
*
|
|
Vanguard Group of
Investment Companies
|
|
Total Bond Market Index Fund
(1,539,404 units)
|
|
**
|
|
|
15,671,130 |
|
|
|
|
|
|
|
|
|
|
|
|
*
|
|
Vanguard Group of
Investment Companies
|
|
Prime Money Market Fund
(7,877,263 units)
|
|
**
|
|
|
7,877,263 |
|
|
|
|
|
|
|
|
|
|
|
|
*
|
|
Vanguard Group of
Investment Companies
|
|
European Stock Index Fund
(287,642 units)
|
|
**
|
|
|
5,870,766 |
|
|
|
|
|
|
|
|
|
|
|
|
*
|
|
Vanguard Group of
Investment Companies
|
|
STAR Fund
(350,368 units)
|
|
**
|
|
|
5,055,816 |
|
|
|
|
|
|
|
|
|
|
|
|
*
|
|
Vanguard Group of
Investment Companies
|
|
Extended Market Index Fund
(206,657 units)
|
|
**
|
|
|
4,961,834 |
|
|
|
|
|
|
|
|
|
|
|
|
*
|
|
Vanguard Group of
Investment Companies
|
|
Pacific Stock Index Fund
(351,449 units)
|
|
**
|
|
|
2,881,884 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Vanguard Mutual Funds
|
|
|
|
|
153,628,688 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common/Collective Trust (1): |
|
|
|
|
|
|
|
|
*
|
|
Vanguard Group of
Investment Companies
|
|
Retirement Savings Trust
(16,223,090 units)
|
|
**
|
|
|
16,013,738 |
|
|
|
|
|
|
|
|
|
|
|
|
*
|
|
National Fuel Gas Company
Tax Deferred Savings Plan
For Non-Union Employees
|
|
Participant Loan Account
(Interest rates range from
4.25% to 12.0%).
|
|
|
|
|
2,219,317 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
|
|
|
|
|
|
$ |
171,861,743 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Denotes known party-in-interest to the Plan. |
|
** |
|
Investments are participant directed, thus cost information is not required. |
(1) |
|
The audited annual report for the Vanguard Retirement Savings Trust has been filed with the
Department of Labor by the Vanguard Fiduciary Trust Company. The entitys tax identification number is
23-2186884. |
12
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or
other persons who administer the employee benefit plan) have duly caused this annual report to be
signed on its behalf by the undersigned hereunto duly authorized.
NATIONAL FUEL GAS COMPANY
TAX DEFERRED SAVINGS PLAN
FOR NON-UNION EMPLOYEES
(Name of Plan)
|
|
|
|
|
|
|
|
By |
/s/ R.J. Tanski
|
|
|
R.J. Tanski |
|
|
Treasurer and Principal Financial Officer |
|
|
|
|
|
|
By |
/s/ K.M. Camiolo
|
|
|
K.M. Camiolo |
|
|
Controller and Principal Accounting Officer |
|
|
|
Date: June 25, 2009
13
EXHIBIT INDEX
|
|
|
Exhibit Number |
|
Description of Exhibit |
23
|
|
Consent of Independent Registered Public Accounting Firm |
14