PAGE
|
|
Report
of Independent Registered Public Accounting Firm
|
2
|
Financial
Statements
|
|
Statements
of Net Assets Available for Benefits at December 31, 2005 and
2004
|
3
|
Statement
of Changes in Net Assets Available for Benefits for the
Year
|
|
Ended December 31, 2005
|
5
|
Notes
to Financial Statements
|
6
|
Unallocated
|
Allocated
|
Total
|
||||||||
ASSETS
|
||||||||||
Investments
|
$
|
17,019
|
$
|
494,335
|
$
|
511,354
|
||||
Dividends
receivable
|
9
|
85
|
94
|
|||||||
Interfund
contributions receivable (payable)
|
(1,340
|
)
|
1,340
|
-
|
||||||
Other
assets
|
-
|
17
|
17
|
|||||||
Total
assets
|
15,688
|
495,777
|
511,465
|
|||||||
LIABILITIES
|
||||||||||
Notes
payable
|
25,163
|
-
|
25,163
|
|||||||
Total
liabilities
|
25,163
|
-
|
25,163
|
|||||||
Net
assets (deficit) available for benefits
|
$
|
(9,475
|
)
|
$
|
495,777
|
$
|
486,302
|
Unallocated
|
Allocated
|
Total
|
||||||||
ASSETS
|
||||||||||
Investments
|
$
|
14,589
|
$
|
411,830
|
$
|
426,419
|
||||
Dividends
receivable
|
111
|
-
|
111
|
|||||||
Interfund
contributions receivable (payable)
|
(828
|
)
|
828
|
-
|
||||||
Interfund
dividends receivable (payable)
|
(650
|
)
|
650
|
-
|
||||||
Other
assets
|
-
|
3
|
3
|
|||||||
Total
assets
|
13,222
|
413,311
|
426,533
|
|||||||
LIABILITIES
|
||||||||||
Notes
payable
|
31,550
|
-
|
31,550
|
|||||||
Interest
payable
|
72
|
-
|
72
|
|||||||
Total
liabilities
|
31,622
|
-
|
31,622
|
|||||||
Net
assets (deficit) available for benefits
|
$
|
(18,400
|
)
|
$
|
413,311
|
$
|
394,911
|
Unallocated
|
Allocated
|
Total
|
||||||||
Additions:
|
||||||||||
Additions
to net assets attributed to:
|
||||||||||
Investment
income:
|
||||||||||
Dividends
|
$
|
127
|
$
|
12,405
|
$
|
12,532
|
||||
Interest
|
3
|
357
|
360
|
|||||||
Net
appreciation in fair value of investments
|
7,898
|
82,952
|
90,850
|
|||||||
8,028
|
95,714
|
103,742
|
||||||||
Employee
contributions
|
-
|
21,248
|
21,248
|
|||||||
Employer
contributions
|
15,574
|
-
|
15,574
|
|||||||
Interfund
transfers
|
(12,258
|
)
|
12,258
|
-
|
||||||
Total
additions
|
11,344
|
129,220
|
140,564
|
|||||||
Deductions:
|
||||||||||
Deductions
from net assets attributed to:
|
||||||||||
Distributions
to terminating and withdrawing
|
||||||||||
participants
|
-
|
46,754
|
46,754
|
|||||||
Interest
expense
|
2,419
|
-
|
2,419
|
|||||||
Total
deductions
|
2,419
|
46,754
|
49,173
|
|||||||
Net
increase in net assets
|
||||||||||
available
for benefits
|
8,925
|
82,466
|
91,391
|
|||||||
Net
assets (deficit) available for benefits:
|
||||||||||
Beginning
of year
|
(18,400
|
)
|
413,311
|
394,911
|
||||||
End
of year
|
$
|
(9,475
|
)
|
$
|
495,777
|
$
|
486,302
|
1.
|
Plan
Description
and Basis of Presentation
|
a) |
the
accounts of participants with vested rights in allocated Company
stock and
other investments (allocated) and
|
b) |
the
Company’s stock not yet allocated to participants
(unallocated).
|
2.
|
Significant
Accounting Policies
|
3.
|
Investments
|
December
31, 2005
|
December
31, 2004
|
||||||||||||
(Thousands
of dollars)
|
Shares/Units
|
Fair
Value
|
Shares/Units
|
Fair
Value
|
|||||||||
Kerr-McGee
Corporation Common Stock
|
|||||||||||||
Common stock fund
|
1,137,110
|
$
|
51,659
|
1,824,400
|
$
|
52,716
|
|||||||
ESOP - Allocated (a)
|
2,238,698
|
101,705
|
2,838,580
|
81,962
|
|||||||||
ESOP - Unallocated (a)
|
374,626
|
17,019
|
504,898
|
14,589
|
|||||||||
Total Kerr-McGee common stock
|
170,383
|
149,267
|
|||||||||||
Fidelity
Growth Company Fund
|
345,657
|
21,994
|
(b) |
361,092
|
20,246
|
||||||||
Fidelity
Balanced Fund
|
1,990,632
|
37,344
|
1,717,441
|
30,605
|
|||||||||
Fidelity
Diversified International Fund
|
862,271
|
28,058
|
690,105
|
19,765
|
|||||||||
Fidelity
Mid-Cap Stock Fund
|
-
|
-
|
(b) |
1,005,620
|
23,582
|
||||||||
Managed
Income Portfolio II
|
85,541,795
|
85,542
|
59,750,937
|
59,751
|
|||||||||
Spartan
U.S. Equity Index Fund
|
589,806
|
26,046
|
597,655
|
25,615
|
|||||||||
AIM
Basic Value Fund
|
1,504,308
|
51,477
|
1,340,974
|
43,474
|
(a) |
Fund
is nonparticipant-directed (see Note 4).
|
(b) |
Fair
value of the Plan's investment does not exceed 5% of net assets available
for benefits at the balance sheet date indicated, but is presented
for
comparative purposes.
|
Kerr-McGee
Corporation common stock
|
$
|
79,720
|
||
Registered
investment companies and common collective trusts
|
11,130
|
|||
$
|
90,850
|
4.
|
Nonparticipant-directed
Investments
|
December
31, 2005
|
||||||||||
Unallocated
|
Allocated
|
Total
|
||||||||
Net
Assets:
|
||||||||||
Kerr-McGee
Corporation common stock
|
$
|
17,019
|
$
|
101,705
|
$
|
118,724
|
||||
Dividends receivable
|
9
|
56
|
65
|
|||||||
Interfund contributions receivable (payable)
|
(1,340
|
)
|
1,340
|
-
|
||||||
Notes payable
|
(25,163
|
)
|
-
|
(25,163
|
)
|
|||||
Net
assets (deficit) available for benefits
|
$
|
(9,475
|
)
|
$
|
103,101
|
$
|
93,626
|
December
31, 2004
|
||||||||||
Unallocated
|
Allocated
|
Total
|
||||||||
Net
Assets:
|
||||||||||
Kerr-McGee
Corporation common stock
|
$
|
14,589
|
$
|
81,962
|
$
|
96,551
|
||||
Dividends receivable
|
111
|
-
|
111
|
|||||||
Interfund contributions receivable (payable)
|
(828
|
)
|
828
|
-
|
||||||
Interfund dividends receivable (payable)
|
(650
|
)
|
650
|
-
|
||||||
Notes payable
|
(31,550
|
)
|
-
|
(31,550
|
)
|
|||||
Interest payable
|
(72
|
)
|
-
|
(72
|
)
|
|||||
Net
assets (deficit) available for benefits
|
$
|
(18,400
|
)
|
$
|
83,440
|
$
|
65,040
|
Year
ended
|
||||||||||
December
31, 2005
|
||||||||||
Unallocated
|
Allocated
|
Total
|
||||||||
Changes
in Net Assets:
|
||||||||||
Dividends
|
$
|
127
|
$
|
1,454
|
$
|
1,581
|
||||
Interest
income
|
3
|
-
|
3
|
|||||||
Net
appreciation
|
7,898
|
44,068
|
51,966
|
|||||||
Employer
contributions
|
15,574
|
-
|
15,574
|
|||||||
Distributions
|
-
|
(11,154
|
)
|
(11,154
|
)
|
|||||
Loans
to participants
|
-
|
(22
|
)
|
(22
|
)
|
|||||
Interest
expense
|
(2,419
|
)
|
-
|
(2,419
|
)
|
|||||
Interfund
transfers
|
(12,258
|
)
|
12,258
|
-
|
||||||
Diversification
from ESOP
|
-
|
(26,943
|
)
|
(26,943
|
)
|
|||||
$
|
8,925
|
$
|
19,661
|
$
|
28,586
|
5.
|
Notes
Payable
|
Period
|
Outstanding
Principal
|
|||||||||
Installments
Due
|
2005
|
2004
|
||||||||
9.61%
Series B notes
|
July
1998 - January 2005
|
$
|
-
|
$
|
1,500
|
|||||
8.43%
Oryx Series A sponsor notes
|
January
1997 - July 2006
|
1,390
|
4,521
|
|||||||
8.71%
Oryx Series B sponsor notes
|
August
2005 - July 2008
|
8,864
|
9,856
|
|||||||
8.78%
Oryx Series C sponsor notes
|
August
2008 - July 2011
|
14,909
|
15,673
|
|||||||
$
|
25,163
|
$
|
31,550
|
6.
|
Tax
Status
|
7.
|
Party-in-Interest
Transactions
|
8.
|
Subsequent
Events
|
(c)
|
(e)
|
|||||||
(b)
|
Description
of investment including maturity date,
|
(d)
|
Current
|
|||||
(a)*
|
Identity
of issue, borrower, lessor or similar party
|
rate
of interest, collateral, par or maturity value
|
Cost
|
Value
|
||||
*
|
Kerr-McGee
Corporation
|
Common
stock (ESOP allocated) - 2,238,698 shares
|
$57,283
|
$101,705
|
||||
*
|
Kerr-McGee
Corporation
|
Common
stock (ESOP unallocated) - 374,626 shares
|
14,272
|
17,019
|
||||
*
|
Kerr-McGee
Corporation
|
Common
stock - 1,137,110 shares
|
nr
|
51,659
|
||||
*
|
Fidelity
Investments
|
Fidelity
Growth Company Fund - 345,657 shares
|
nr
|
21,994
|
||||
*
|
Fidelity
Investments
|
Fidelity
Balanced Fund - 1,990,632 shares
|
nr
|
37,344
|
||||
*
|
Fidelity
Investments
|
Fidelity
Diversified International Fund - 862,271 shares
|
nr
|
28,058
|
||||
*
|
Fidelity
Investments
|
Managed
Income Portfolio II - 85,541,795 shares
|
nr
|
85,542
|
||||
*
|
Fidelity
Investments
|
Spartan
U.S. Equity Index Fund - 589,806 shares
|
nr
|
26,046
|
||||
Pacific
Investment Management Company
|
Pimco
Total Return Fund- 1,323,972 shares
|
nr
|
13,902
|
|||||
BAMCO,
Inc.
|
Baron
Growth Fund - 328,437 shares
|
nr
|
14,911
|
|||||
Fleet
Investment Advisors Inc.
|
Columbia
Small-Cap Fund - 274,952 shares
|
nr
|
5,081
|
|||||
AIM
Advisors, Inc.
|
AIM
Basic Value Fund - 1,504,308 shares
|
nr
|
51,477
|
|||||
Artisan
Funds, Inc.
|
Artisan
Mid-Cap Fund - 720,537 shares
|
nr
|
22,279
|
|||||
Dreyfus
|
Dreyfus
Premier Small-Cap Value Fund - 224,657 shares
|
nr
|
4,821
|
|||||
Hotchkins
& Wiley
|
Hotchkins
& Wiley Mid-Cap Fund - 750,181 shares
|
nr
|
21,155
|
|||||
Hotchkins
& Wiley
|
Hotchkins
& Wiley Large-Cap Fund - 64,717 shares
|
nr
|
1,515
|
|||||
*
|
Various
Participants
|
Participant
loans - interest rates from 5% to 10.5%
|
nr
|
6,846
|
||||
$511,354
|
(h)
|
|||||||||||||||||||
(c)
|
(d)
|
(g)
|
Current
value
|
(i)
|
|||||||||||||||
(a)
|
(b)
|
Purchase
|
Selling
|
Cost
of
|
of
asset on
|
Net
gain
|
|||||||||||||
Identity
of party involved
|
Description
of asset
|
price
|
price
|
asset
|
transaction
date
|
or
(loss)
|
|||||||||||||
Category
(iii) - Series of transactions in excess of 5% of the Plan
assets:
|
|||||||||||||||||||
*Kerr-McGee
Corporation
|
Common
Stock
|
$
|
8,109
|
$
|
-
|
$
|
8,109
|
$
|
8,109
|
$
|
-
|
||||||||
*Kerr-McGee
Corporation
|
Common
Stock
|
$
|
-
|
$
|
35,650
|
$
|
22,424
|
$
|
35,650
|
$
|
13,226
|