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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 11-K

 


 

ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

x                ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the fiscal year ended December 31, 2014

 

or

 

o                   TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

for the transition period from to

 

Commission file number 1-10888

 


 

TOTAL PETROCHEMICALS & REFINING USA, INC.

CAPITAL ACCUMULATION PLAN

1201 Louisiana Street Suite 1800

Houston, Texas 77002

 

TOTAL S.A.

2, place Jean Millier

La Défense

92400 Courbevoie

France

 

 

 



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TOTAL PETROCHEMICALS & REFINING USA, INC.
CAPITAL ACCUMULATION PLAN

 

Table of Contents

 

 

 

 

Page

 

 

Report of Independent Registered Public Accounting Firm – 2014

1

 

 

Report of Independent Registered Public Accounting Firm – 2013

2

 

 

Statements of Net Assets Available for Benefits – December 31, 2014 and 2013

3

 

 

Statements of Changes in Net Assets Available for Benefits – Years ended December 31, 2014 and 2013

4

 

 

Notes to Financial Statements

5

 

 

Supplemental Schedules

 

 

 

Schedule I – Schedule H, Line 4a – Schedule of Delinquent Participant Contributions – Year ended December 31, 2014

17

 

 

Schedule II – Schedule H, Line 4i – Schedule of Assets (Held at End of Year) – December 31, 2014

18

 

 

Supplemental schedules, other than those listed above, are omitted because of the absence of the conditions under which they are required.

 



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Report of Independent Registered Public Accounting Firm

 

To the Benefits Administrative Committee of

Total Petrochemicals & Refining USA, Inc. Capital Accumulation Plan

 

We have audited the accompanying statement of net assets available for benefits of Total Petrochemicals & Refining USA, Inc. Capital Accumulation Plan (the Plan) as of December 31, 2014, and the related statement of changes in net assets available for benefits for the year then ended.  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 audit.  The financial statements of the Plan as of and for the year ended December 31, 2013, were audited by other auditors whose report dated June 27, 2014, expressed an unmodified opinion on these statements.

 

We conducted our audit in accordance with the 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.  An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides 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 Plan as of December 31, 2014, and the changes in net assets available for benefits for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

 

The supplemental information in the accompanying Schedule H, Line 4a – Schedule of Delinquent Participant Contributions for the year ended December 31, 2014, and Schedule H, Line 4i – Schedule of Assets (Held at End of Year) as of December 31, 2014, have been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial statements.  The supplemental information is presented for the purpose of additional analysis and is not a required part of the financial statements but includes supplemental information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974.  The supplemental information is the responsibility of the Plan’s management.  Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information.  In forming our opinion on the supplemental information in the accompanying schedules, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974.  In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole.

 

/s/ BRIGGS & VESELKA CO.    

Briggs & Veselka Co.

Houston, Texas

 

June 26, 2015

 

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Report of Independent Registered Public Accounting Firm

 

 

The Benefits Administrative Committee
Total Petrochemicals & Refining USA, Inc. Capital Accumulation Plan:

 

We have audited the accompanying statement of net assets available for benefits of the Total Petrochemicals & Refining USA, Inc. Capital Accumulation Plan (the Plan) as of December 31, 2013, and the related statement of changes in net assets available for benefits for the year then ended. 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 audit.

 

We conducted our audit in accordance with the 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. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit 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 Plan as of December 31, 2013, and the changes in net assets available for benefits for the year then ended, in conformity with U.S. generally accepted accounting principles.

 

/s/ KPMG LLP

KPMG LLP
Houston, Texas

 

June 27, 2014

 

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TOTAL PETROCHEMICALS & REFINING USA, INC.

CAPITAL ACCUMULATION PLAN

 

Statements of Net Assets Available for Benefits

 

December 31, 2014 and 2013

 

 

 

 

 

2014

 

 

 

2013

 

Assets:

 

 

 

 

 

 

 

 

Investments, at fair value

 

$

530,794,923

 

 

$

505,756,264

 

 

 

 

 

 

 

 

 

 

Receivables:

 

 

 

 

 

 

 

 

Notes receivable from participants

 

 

10,684,650

 

 

 

9,314,277

 

Employer contributions receivable

 

 

379,909

 

 

 

183,774

 

Employee contributions receivable

 

 

583,671

 

 

 

268,224

 

Dividend receivable

 

 

1,506,667

 

 

 

1,648,639

 

Due from trustee for securities sold

 

 

515,062

 

 

 

1,003,555

 

 

 

 

 

 

 

 

 

 

Total receivables

 

 

13,669,959

 

 

 

12,418,469

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

544,464,882

 

 

 

518,174,733

 

 

 

 

 

 

 

 

 

 

Net assets reflecting investments at fair value

 

 

544,464,882

 

 

 

518,174,733

 

 

 

 

 

 

 

 

 

 

Adjustment from fair value to contract value for fully benefit-responsive investment contracts

 

 

(929,029

)

 

 

(961,594

)

 

 

 

 

 

 

 

 

 

Net assets available for benefits

 

$

543,535,853

 

 

$

517,213,139

 

 

 

See accompanying notes to financial statements.

 

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TOTAL PETROCHEMICALS & REFINING USA, INC.

CAPITAL ACCUMULATION PLAN

 

Statements of Changes in Net Assets Available for Benefits

 

Years ended December 31, 2014 and 2013

 

 

 

 

 

2014

 

 

 

2013

 

Contributions:

 

 

 

 

 

 

 

 

Employee

 

$

19,402,366

 

 

$

16,933,695

 

Company

 

 

10,360,937

 

 

 

10,946,894

 

Rollover

 

 

1,482,818

 

 

 

863,655

 

 

 

 

 

 

 

 

 

 

Total contributions

 

 

31,246,121

 

 

 

28,744,244

 

 

 

 

 

 

 

 

 

 

Investment income:

 

 

 

 

 

 

 

 

Dividends and interest

 

 

29,711,224

 

 

 

16,768,400

 

Net appreciation (depreciation) in fair value of TOTAL S.A. ADS

 

 

(24,456,944

)

 

 

24,185,252

 

Net appreciation (depreciation) in fair value of mutual funds

 

 

(3,842,217

)

 

 

40,367,950

 

 

 

 

 

 

 

 

 

 

Total investment income

 

 

1,412,063

 

 

 

81,321,602

 

 

 

 

 

 

 

 

 

 

Interest income on notes receivable from participants

 

 

455,046

 

 

 

407,756

 

Payments to participants

 

 

(53,000,817

)

 

 

(51,655,434

)

Administrative expenses

 

 

(129,671

)

 

 

(81,937

)

 

 

 

 

 

 

 

 

 

Net increase (decrease) in net assets available for benefits prior to transfer in

 

 

(20,017,258

)

 

 

58,736,231

 

 

 

 

 

 

 

 

 

 

Transfer in

 

 

46,339,972

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase in net assets available for benefits

 

 

26,322,714

 

 

 

58,736,231

 

 

 

 

 

 

 

 

 

 

Net assets available for benefits:

 

 

 

 

 

 

 

 

Beginning of year

 

 

517,213,139

 

 

 

458,476,908

 

 

 

 

 

 

 

 

 

 

End of year

 

$

543,535,853

 

 

$

517,213,139

 

 

 

See accompanying notes to financial statements.

 

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TOTAL PETROCHEMICALS & REFINING USA, INC.
CAPITAL ACCUMULATION PLAN

 

Notes to Financial Statements

 

December 31, 2014 and 2013

 

(1)                  Description of the Plan

 

(a)                  General

 

The Total Petrochemicals & Refining USA, Inc. Capital Accumulation Plan, (the Plan) operates for the benefit of certain employees of Total Petrochemicals & Refining USA, Inc. and other participating employers, hereafter referred to as the “Company” or “employing companies”. The Company is an indirectly wholly owned subsidiary of TOTAL S.A., a French company whose shares are publicly traded on the New York Stock Exchange.

 

The Plan is a defined contribution plan and is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA). The following description of the Plan is provided for general purposes only. Participants should refer to the Plan document as amended for more complete information.

 

The Plan is administered by a Benefits Administrative Committee (the Committee) appointed by and acting on behalf of the board of directors of the Company. Pursuant to the Plan’s trust agreement, an independent trustee maintains custody of the Plan’s assets. Fidelity Management Trust Company (the Trustee) serves as the trustee and Fidelity Workplace Services LLC serves as the independent record keeper.

 

Effective January 1, 2014, the existing plan of Cray Valley USA, LLC merged into the Plan.

 

The Plan was amended on November 1, 2008 to include Total Petroleum Puerto Rico Corporation (USVI) as an employing company.

 

(b)                  Eligibility

 

An employee is eligible to participate in the Plan immediately upon employment. Effective January 1, 2010, collectively bargained new hires began receiving Non-Contributory contributions. Participants are eligible for Company matching contributions after one year of employment.

 

(c)                   Contributions

 

Participants may elect to contribute up to 30% of their basic compensation on a pretax basis, up to 6% on an after-tax basis, or a combination of pretax and after-tax contributions not exceeding 30% of their basic compensation. For noncollectively bargained employees, basic “compensation” includes regular base salary or wages, plus bonus payments, overtime, callback pay, accrued vacation and night shift differential. For collectively bargained employees, basic “compensation” includes annual base pay only and does not include overtime or incentive payments or any other special forms of pay. Eligible employees are automatically deemed to have made a pretax election of 6% unless the employee has affirmatively elected to make no pretax contributions or elected to make pretax contributions in a different amount. A participant may elect to change his or her election under the Plan at any time. Participants who are age 50 or older before the close of the Plan year may elect to make a catch-up contribution subject to certain limitations under the Internal Revenue Code of 1986, as amended (the Code) ($5,500 per participant in 2014 and 2013). Eligible participants may also elect to rollover-qualified distributions as defined in the Plan document.

 

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For each eligible participant, the employing company will contribute 100% up to 6% of the participant’s total eligible compensation for the pay period. Participants must contribute a minimum of 3% of pretax contributions before the Company will match after-tax contributions. The Company does not match employee catch-up contributions. Employer contributions can be reduced by participants’ forfeitures.

 

Noncollectively bargained employees of Atotech USA, Inc. (Atotech) will receive a Company matching contribution equal to 100% up to 4% of the participant’s total eligible compensation for the pay period. Participants must contribute a minimum of 3% of pre-tax contributions before a match will be made on after tax contributions.

 

Noncollectively bargained employees of Total Specialties USA, Inc. (Specialties) will receive a Company matching contribution equal to 115% of pre-tax contributions up to 4% of the participant’s total eligible compensation for the pay period.

 

Noncollectively bargained employees of USVI will receive a Company matching contribution equal to 100% of pre-tax contributions up to 7% of the participant’s total eligible compensation for the pay period.

 

Participants hired after January 1, 2006 were eligible to receive a Non-Contributory contribution. The Non-Contributory contribution replaces the existing defined benefit plan benefits as the defined benefit plan was closed to new participants effective January 1, 2006. Employees were immediately eligible from their date of hire. The amount of the contribution is based on the employee’s years of service with the Company and varies from 5% to 8% of total eligible compensation.

 

The defined benefit plan was closed to all collectively bargained new hires on December 31, 2009. Collectively bargained employees hired as of January 1, 2010 are eligible to receive a Non-Contributory contribution.

 

Beginning July 1, 2013, the Non-Contributory contributions ended for non-collectively bargained employees. Employees continue to be vested in contributions made prior to July 1, 2013 based on the vesting schedule. Collectively bargained employees hired on or after July 1, 2013 will continue to be eligible for Non-Contributory contributions. Non-Collectively eligible employees will be enrolled in the Total Finance USA, Inc. Cash Balance Pension Plan.  The amount of the contribution is based on the employees years of service with the Company and varies from 6% to 7.5%.

 

Employee contributions and Company contributions, as described, are subject to various limitations imposed by the Code. Under the terms of the Plan, employee pretax contributions are limited to amounts provided under Sections 402(g) of the Code ($17,500 in 2014 and 2013).

 

Employee contributions, Company matching contributions, and Non-Contributory contributions are paid to the Trustee in cash.

 

(d)                  Vesting Provisions

 

Participants are vested immediately in all contributions plus actual earnings thereon except Non-Contributory contributions. Effective January 1, 2007, the 2006 Non-Contributory contributions vesting schedule was changed to a 4-year period. In addition, all subsequent Non-Contributory contributions are subject to a 3-year vesting period. A participant will have a vested interest in the portion of their matching contribution accounts attributable to the Cray Valley Plan in accordance with a two year vesting schedule.

 

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Participant Accounts

 

Each participant’s account is credited with his or her contribution, the Company matching contribution, the Non-Contributory contribution, and an allocation of plan earnings or losses and administrative expenses. Allocations are based on the proportion that each participant’s account balance bears to the total of all participant account balances. The benefit to which a participant is entitled is the vested portion of the benefit that can be provided from the participant’s account.

 

(e)                   Investment Options

 

The following investment options are available to participants:

 

·                             American Beacon Large Cap Value Fund

·                             American Beacon Small Cap Value Fund

·                             American Funds American Balanced Fund

·                             American Funds The Growth Fund of America

·                             Conestoga Small Cap Fund

·                             Fidelity Capital Appreciation Fund K

·                             Fidelity Diversified International Fund

·                             Fidelity Freedom K 2010 Fund

·                             Fidelity Freedom K 2020 Fund

·                             Fidelity Freedom K 2030 Fund

·                             Fidelity Freedom K 2040 Fund

·                             Fidelity Freedom K 2050 Fund

·                             Fidelity Freedom K Income Fund

·                             Fidelity Managed Income Portfolio II

·                             Hotchkis & Wiley Mid Cap Value Fund

·                             Oppenheimer Developing Markets Fund

·                             PIMCO Total Return Fund

·                             Royce Premier  Fund

·                             Third Avenue Real Estate Value Fund IS

·                             TOTAL S.A. ADS

·                             Vanguard Institutional Index Fund

·                             Vanguard Total Bond Market  Index Fund

 

The Fidelity Freedom K 2060 Fund was added in  2015. American Funds The Growth Fund of America  was removed in 2015.

 

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(f)                     Notes Receivable from Participants

 

A participant may borrow from his or her account an amount which, when added to the greater of the total outstanding balance of all other loans to such participant from the Plan or the highest outstanding balance of all such loans for the one year period ending the day before the date of the loan, does not exceed the lesser of $50,000 or 50% of the participant’s vested account balance. Participants must wait 90 days after paying off an existing loan before requesting a new loan of the same type (i.e., general purpose loan or primary residential loan). Any such loan made to a participant shall be evidenced by a promissory note payable to the Plan, shall bear a reasonable rate of interest, shall be secured by the borrowing participant’s vested interest under the Plan and shall be repayable within five years; provided, however, that if such loan is to be used to acquire or construct any dwelling unit which within a reasonable time is to be used as a principal residence of the participant, the Committee may direct the Trustee to make such loan repayable over such period greater than five years. No withdrawal pursuant to any of the withdrawal provisions of the Plan may be made by a participant to whom a loan is outstanding from the Plan unless the Committee is satisfied that such loan will remain nontaxable and fully secured by the withdrawing participant’s vested interest under the Plan following such withdrawal. Interest rates range from  4.25% to 9.5% at December 31, 2014. Loan maturity dates range from January  4, 2015 to November 30, 2033 at December 31, 2014.

 

(g)                  Distributions and Forfeitures

 

Distributions are made in a lump sum or for balances greater than $5,000 in installment payments as elected by the participant after termination of employment. The Plan requires automatic distribution of participant accounts of amounts less than $5,000 upon termination without the participant’s consent. In the event the distribution is greater than $1,000 and the participant has failed to make a distribution election the Plan will pay the distribution to an individual retirement account for the benefit of the participant designated by the plan administrator. Amounts less than $1,000 will be distributed directly to participants upon termination.

 

An active participant may withdraw after-tax contributions and matching contributions made before 1984 and earnings thereon. At any time, a participant age 59 1/2 or older may withdraw his or her total account (other than Company Non-Contributory contributions). An active participant whose account balance in the Cray Valley Plan was transferred the Plan as of January 2, 2014 is permitted to request a hardship withdrawal from his before-tax Contribution Account.  A distribution will be on account of hardship only if the distribution is necessary to satisfy an immediate and heavy financial need of the participant.

 

Participants age 50 and older may request an optional form of distribution, systematic withdrawal payments, that allow their entire vested account balance to be paid in substantially equal annual or more frequent installments over a period that does not extend beyond the life expectancy of the participant, spouse or beneficiary. Upon the participant’s death, any unpaid vested balance will be paid to the participant’s spouse or beneficiary.

 

Forfeited balances will be applied first to one of the following purposes as determined by the Committee in its discretion: to pay the expenses of administering the Plan, to reinstate any forfeitures that must be reinstated in accordance with the Plan or to reduce participating employer contributions. At December 31, 2014 and 2013, forfeitures totaled approximately $7,391 and $183,026 respectively. During 2014, a total of $251,113 of forfeitures was used to reduce employer contributions.

 

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(h)                  Plan Termination

 

Although they have not expressed any intent to do so, the employing companies have the right under the Plan to discontinue their contributions at any time and to terminate the Plan subject to the provisions of ERISA.

 

(i)                      Expenses of Administering the Plan

 

All external costs and expenses incurred in administering the Plan, including the fees and expenses of the Trustee, the fees of its counsel, accounting fees, and record keeper fees, are the responsibility of the Plan. In addition, certain investment related expenses reduce investment income in the accompanying Statements of Changes in Net Assets Available for Benefits.

 

(2)                  Summary of Significant Accounting Policies

 

(a)                  Basis of Accounting

 

The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).

 

Investments 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. As required, the statements of net assets available for benefits presents the fair value of the investment contracts as well as the adjustment of the fully benefit responsive investment contracts from fair value to contract value. The statements of changes in net assets available for benefits are prepared on a contract value basis.

 

(b)                  Valuation of Investments

 

Investments are reported at fair value. The TOTAL S.A. American Depositary Shares (ADS) and mutual funds are valued based upon quoted market prices. The Plan’s investment in the Fidelity Managed Income Portfolio II, which is fully benefit responsive, is presented in the statements of net assets available for benefits at the fair value of units held by the Plan as of December 31, 2014 and 2013, with separate disclosure of the adjustment from fair value to contract value, which is equal to principal balance plus accrued interest. The fair value of the Fidelity Managed Income Portfolio II is calculated by the issuer utilizing quoted market prices, most recent bid prices in the principal market in which the securities are normally traded, pricing services and dealer quotes. The fair value of underlying wrapper contracts is calculated by the issuer using a discounted cash flow model which considers (i) recent fee bids as determined by recognized dealers, (ii) discount rate and (iii) the duration of the underlying portfolio securities.

 

The statements of net assets available for benefits includes the fair value of the underlying assets and wrap contracts of the Fidelity Managed Income Portfolio II based on the proportionate ownership of the Plan.

 

As of December 31, 2014 and 2013, there were no reserves against the wrap contracts’ carrying values due to credit risks of the issuers. Interest rates are reviewed on a monthly basis for resetting instead of being reviewed on a quarterly basis. Certain events could limit the ability of the Plan to transact at contract value with the issuers of the contracts held by the Fidelity Managed Income Portfolio II. Such events could include, but are not limited to, the following: the establishment of a defined contribution plan that competes with the Plan for contributions, substantive modification to the Fidelity Managed Income Portfolio II or the administration

 

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of the Fidelity Managed Income Portfolio II, change in law, regulation or administrative ruling applicable to the Plan that could have a material adverse effect on cash flow, transfer to a competing investment option, and failure of the Plan to qualify under the applicable sections of the Code. Withdrawals initiated by the Plan will normally be provided at contract value as soon as practicable within twelve months following written notice. The Plan does not believe that the occurrence of any of these events, which could limit the Plan’s ability to transact at contract value with participants, is probable.

 

The average yields earned by the Fidelity Managed Income Portfolio II were approximately 1.70% and 1.59% at December 31, 2014 and 2013, respectively. The average yields earned by the Fidelity Managed Income Portfolio II based on the actual interest rates credited to participants were approximately 1.38% and 1.14% at December 31, 2014 and 2013, respectively. Security transactions are recorded on a trade date basis. Interest is recorded as earned, and dividends are recorded on the ex- dividend’s date.

 

Net appreciation (depreciation) in the fair value of investments includes realized gains (losses) on the sale of investments and unrealized appreciation (depreciation) in the fair value of investments.

 

(c)                   Notes Receivable from Participants

 

Notes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest. Interest income is recorded on the accrual basis. Delinquent participant loans are reclassified as distributions based upon the terms of the Plan document.

 

(d)                  Use of Estimates

 

The preparation of financial statements in conformity with U.S. GAAP 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. Actual results could differ from those estimates.

 

(e)                   Payment of Benefits

 

Payments to participants are recorded as the benefits are paid.

 

(f)                     Risks and Uncertainties

 

The Plan provides for investments in TOTAL S.A. ADS, mutual funds, and a common/collective trust fund. Investment securities, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility risk. Due to the level of risk associated with certain investment securities, it is reasonably possible that significant 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 statements of net assets available for benefits.

 

The Plan invests, through its investment in the common/collective trust fund, in securities with contractual cash flows, such as asset-backed securities, collateralized mortgage obligations and commercial mortgage-backed securities, including securities backed by subprime mortgage loans. The value, liquidity and related income of those securities are sensitive to changes in economic conditions, including real estate value, delinquencies or defaults, or both, and may be adversely affected by shifts in the market’s perception of the issuers and changes in interest rates.

 

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(g)                  Subsequent Events

 

We have evaluated significant events and transactions that occurred after the financial statement date through June 26, 2015, which is the date the financial statements were issued (See note 11).

 

 

 

 

(3)      Fair Value Measurements

 

U.S. GAAP for fair value measurements establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels. The fair value hierarchy gives the highest priority to quoted market prices (unadjusted) in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). Level 2 inputs are inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. The Plan must use Level 1 inputs when available as Level 1 inputs generally provide the most reliable evidence of fair value. There were no transfers between levels 1, 2, or 3 during 2014 or 2013. Additionally, there were no level 3 investments in 2014 or 2013.

 

Certain investments are reported at fair value on a recurring basis in the statements of net assets available for benefits. The following methods and assumptions were used to estimate the fair values:

 

Mutual funds and TOTAL S.A. ADS – These investments consists of publicly traded mutual funds and common stock. The fair values are based on quoted market prices.

 

Common/collective trust fund – The fair value is calculated by the issuer utilizing quoted market prices, most recent bid prices in the principal market in which the securities are normally traded, pricing services and dealer quotes. The fair value of the underlying wrapper contracts is calculated using a discounted cash flow model which considers recent fee bids as determined by recognized dealers, discount rate and the duration of the underlying portfolio securities. The fair value of the Plan’s holdings in this fund is based on the Plan’s proportionate ownership of the underlying investments.

 

The methods described above may produce a fair value calculation that may not be indicative of net asset value or reflective of future fair value. Furthermore, while management believes that the Plan’s 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 different estimates of fair value at the reporting date.

 

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Fair value information for investments that are measured at fair value on a recurring basis is as follows at December 31, 2014:

 

 

 

 

 

 

 

 

 

 

Fair value

 

 

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

measurement

 

 

 

 

 

 

 

 

 

 

 

Common/collective trust fund

$

—   

$

64,549,567

$

$

64,549,567  

 

 

 

 

 

 

 

 

 

 

 

Mutual funds:

 

 

 

 

 

 

 

 

 

Large Cap Growth

 

21,364,592  

 

 

 

21,364,592  

 

Large Cap Blend

 

58,683,532  

 

 

 

58,683,532  

 

Large Cap Value

 

12,828,509  

 

 

 

12,828,509  

 

Mid Cap Blend

 

25,387,660  

 

 

 

25,387,660  

 

Mid Cap Value

 

25,281,361  

 

 

 

25,281,361  

 

Small Cap Growth

 

7,081,763  

 

 

 

7,081,763  

 

Small Cap Value

 

8,635,296  

 

 

 

8,635,296  

 

Foreign

 

25,481,474  

 

 

 

25,481,474  

 

Diversified Emerging Mkts

 

19,492,663  

 

 

 

19,492,663  

 

Specialty

 

7,116,168  

 

 

 

7,116,168  

 

Bond/Managed Income

 

28,556,226  

 

 

 

28,556,226  

 

Blended Future Investments

 

106,520,378  

 

 

 

106,520,378  

 

 

 

 

 

 

 

 

 

 

 

Total mutual funds

 

346,429,622  

 

 

 

346,429,622  

 

 

 

 

 

 

 

 

 

 

 

TOTAL S.A. ADS

 

119,815,734  

 

 

 

119,815,734  

 

 

 

 

 

 

 

 

 

 

 

Total investments at fair value

$

466,245,356  

$

64,549,567

$

$

530,794,923  

 

 

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Table of Contents

 

Fair value information for investments that are measured at fair value on a recurring basis is as follows at December 31, 2013:

 

 

 

 

 

 

 

 

 

 

Fair value

 

 

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

measurement

 

 

 

 

 

 

 

 

 

 

 

Common/collective trust fund

$

—   

$

68,312,492

$

$

68,312,492  

 

 

 

 

 

 

 

 

 

 

 

Mutual funds:

 

 

 

 

 

 

 

 

 

Large Cap Growth

 

27,341,321  

 

 

 

27,341,321  

 

Large Cap Blend

 

38,685,424  

 

 

 

38,685,424  

 

Large Cap Value

 

7,607,518  

 

 

 

7,607,518  

 

Mid Cap Blend

 

25,968,948  

 

 

 

25,968,948  

 

Mid Cap Value

 

21,687,809  

 

 

 

21,687,809  

 

Small Cap Growth

 

3,152,572  

 

 

 

3,152,572  

 

Small Cap Value

 

8,023,807  

 

 

 

8,023,807  

 

Foreign

 

26,120,381  

 

 

 

26,120,381  

 

Diversified Emerging Mkts

 

24,343,639  

 

 

 

24,343,639  

 

Specialty

 

5,454,535  

 

 

 

5,454,535  

 

Bond/Managed Income

 

26,019,452  

 

 

 

26,019,452  

 

Blended Future Investments

 

76,161,250  

 

 

 

76,161,250  

 

 

 

 

 

 

 

 

 

 

 

Total mutual funds

 

290,566,656  

 

68,312,492

 

 

290,566,656  

 

 

 

 

 

 

 

 

 

 

 

TOTAL S.A. ADS

 

146,877,116  

 

 

 

146,877,116  

 

 

 

 

 

 

 

 

 

 

 

Total investments, at fair value

$

437,443,772  

$

68,312,492

$

$

505,756,264  

 

 

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Table of Contents

 

(4)      Investments

 

The fair values of individual assets that represent 5% or more of the Plan’s net assets at December 31, 2014 and 2013 are as follows:

 

 

 

2014:

 

 

 

Vanguard Institutional Index Fund

$

47,850,527   

 

Fidelity Managed Income Portfolio II

 

64,553,122   

 

(contract value $63,620,538)

 

 

 

TOTAL S.A. ADS

 

119,815,734   

 

 

 

 

 

2013:

 

 

 

Vanguard Institutional Index Fund

$

38,685,424   

 

Royce Premier Fund

 

25,968,948   

 

Fidelity Diversified International Fund

 

26,120,381   

 

Fidelity Managed Income Portfolio II

 

68,312,492   

 

(contract value $67,350,898)

 

 

 

TOTAL S.A. ADS

 

146,877,116   

 

 

 

 

(5)      Concentration of Investments

 

The Plan’s investment in TOTAL S.A. ADS represents 23% and 29% of total investments as of December 31, 2014 and 2013, respectively. TOTAL S.A. is an international integrated oil and gas and specialty chemical company, which engages in all areas of the petroleum industry, from exploration and production to refining and shipping.

 

(6)      Tax Status

 

The Plan has obtained from the Internal Revenue Service (IRS) a determination letter dated March 25, 2015 indicating that the Plan qualifies under the provision of Section 401(a) of the Code and, accordingly, is exempt from federal income taxes under Section 501(a) of the Code. The Plan has been amended since receiving the letter; however, Plan management believes that the Plan is designed and continues to operate in accordance with the applicable provisions of the Code.

 

U.S. GAAP requires Plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. The Plan administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2014, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The Plan administrator believes it is no longer subject to income tax examinations for years prior to 2011.

 

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Table of Contents

 

(7)      Reconciliation to Form 5500

 

The following is a reconciliation of net assets available for benefits per the financial statements at Decemeber 31, 2014 and 2013 to the Form 5500:

 

 

 

 

December 31

 

 

 

2014

 

2013

 

Net assets available for benefits per the financial statements

$

543,535,853   

$

517,213,139   

 

Less adjustment from fair value to contract value for fully benefit responsive investment contracts

 

929,029   

 

961,594   

 

 

 

 

 

 

 

Net assets available for benefits per the Form 5500

$

544,464,882   

$

518,174,733   

 

 

The following is a reconciliation of investment income  per the financial statements to the Form 5500:

 

 

 

 

December 31

 

 

 

2014

 

2013

 

Total investment income per the financial statements

$

1,412,063   

$

81,321,602   

 

Interest income on notes receivable from participants

 

455,046   

 

407,756   

 

Add adjustment from fair value to contract value for fully benefit-responsive investment contracts at December 31, 2014 and 2013

 

929,029   

 

961,594   

 

Less adjustment from fair value to contract value for fully benefit-responsive investment contracts at December 31, 2013 and 2012

 

(961,594)  

 

(1,663,116)  

 

 

 

 

 

 

 

Total investment income per the Form 5500

$

1,834,544   

$

81,027,836   

 

 

 

 

Fully benefit- responsive investment contracts are recorded on the Form 5500 at fair value but are adjusted to contract value for financial statement presentation.

 

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Table of Contents

 

(8)      Related-Party Transactions and Party –in-Interest  Transactions

 

The Plan engaged in investment transactions with funds managed by Fidelity Investments, an affiliate of the trustee. In addition, the Plan invests in TOTAL S.A. ADS, which are shares and units of the parent company of the plan sponsor. These transactions qualify as party-in-interest transactions and are covered by an exemption from the “prohibited transaction” provisions of ERISA and the Code.

 

(9)      Delinquent Participant Contributions

 

As reported on Schedule H, Line 4a – Schedule of Delinquent Participant Contributions for the year ended December 31, 2014, certain participant contributions were not remitted to the trust within the time frame specified by  ERISA section 2510.3-102, thus constituting a nonexempt transaction between the Plan and the Company.

 

(10)   Subsequent Events

 

The Plan was amended and restated effective January 1, 2015.

 

Effective January 1, 2015, the TOTAL S.A. ADS was no longer offered as an investment option to participants.  Participants have until December 31, 2015 to transfer their balances to any of the remaining funds in the Plan. If the TOTAL S.A. shares are not transferred by this date, the remaining account balance will be mapped to the age appropriate Fidelity Freedom K fund.

 

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Table of Contents

 

Schedule I

TOTAL PETROCHEMICALS & REFINING USA, INC.

CAPITAL ACCUMULATION PLAN

 

EIN# 75-0990403 Plan: 002

 

Schedule H, Line 4a – Schedule of Delinquent Participant Contributions

 

Year ended December 31, 2014

 

 

 

Total that constitute nonexempt prohibited

 

 

 

 

transactions

 

 

 

 

 

 

 

 

 

 

Total fully

 

 

 

 

 

 

Contributions

 

corrected

 

 

 

 

Contributions

 

pending

 

under

Participant contributions transferred late to plan

 

Contributions

 

corrected

 

correction in

 

VFCP and

Check here if late participant loan repayments are included:o

 

not corrected

 

outside VFCP

 

VFCP

 

PTE 2002 51

 

 

 

 

 

 

 

 $

45,343

 

 

See accompanying report of independent registered public accounting firm.

 

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Table of Contents

 

Schedule II

 

TOTAL PETROCHEMICALS & REFINING USA, INC.

CAPITAL ACCUMULATION PLAN

 

EIN# 75-0990403 Plan: 002

 

Schedule H, Line 4i – Schedule of Assets (Held at end of Year)

 

December 31, 2014

 

Party-in-Interest

 

Identity of issue

 

Description of Investments

 

Costs

 

Current value

 

 

 

American Beacon Large Cap Value Fund

 

Mutual Fund

 

**

$  

 

12,828,509

 

 

 

American Beacon Small Cap Value Fund

 

Mutual Fund

 

**

 

8,635,296

 

 

 

American Funds American Balanced Fund

 

Mutual Fund

 

**

 

25,376,389

 

 

 

American Funds Growth Fund of America

 

Mutual Fund

 

**

 

21,364,592

 

 

 

Conestoga Small Cap

 

Mutual Fund

 

**

 

7,081,763

 

*

 

Fidelity Capital Appreciation Fund K

 

Mutual Fund

 

**

 

10,833,005

 

*

 

Fidelity Diversified International Fund

 

Mutual Fund

 

**

 

25,481,474

 

*

 

Fidelity Freedom K 2010 Fund

 

Mutual Fund

 

**

 

5,765,877

 

*

 

Fidelity Freedom K 2020 Fund

 

Mutual Fund

 

**

 

26,937,368

 

*

 

Fidelity Freedom K 2030 Fund

 

Mutual Fund

 

**

 

22,523,881

 

*

 

Fidelity Freedom K 2040 Fund

 

Mutual Fund

 

**

 

16,415,309

 

*

 

Fidelity Freedom K 2050 Fund

 

Mutual Fund

 

**

 

8,477,884

 

*

 

Fidelity Freedom K Income Fund

 

Mutual Fund

 

**

 

1,023,670

 

*

 

Fidelity Managed Income Portfolio II

 

Collective Trust Fund

 

**

 

64,549,567

 

 

 

Hotchkis and Wiley Mid-Cap Value Fund

 

Mutual Fund

 

**

 

25,281,361

 

 

 

Oppenheimer Developing Markets Fund

 

Mutual Fund

 

**

 

19,492,663

 

 

 

PIMCO Total Return Fund

 

Mutual Fund

 

**

 

16,495,383

 

 

 

Royce Premier Institutional Fund

 

Mutual Fund

 

**

 

25,387,660

 

 

 

Third Avenue Real Estate Value Fund

 

Mutual Fund

 

**

 

7,116,168

 

 

 

Vanguard Institutional Index Fund

 

Mutual Fund

 

**

 

47,850,527

 

 

 

Vanguard Total Bond Market Institutional

 

Mutual Fund

 

**

 

12,060,843

 

*

 

TOTAL S.A - ADS

 

 

 

 

 

119,815,734

 

 

 

 

 

 

 

 

 

 

*

 

Participant Loans

 

Interest Rate Range: 4.25% - 9.50%

-      

 

10,684,650

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$  

 

541,479,573

 

 

 

 

 

 

 

*

Indicates a party in interest.

 

 

**

Cost information is not required as these assets are participant-directed.

 

 

 

 

 

 

 

 

See accompanying report of independent registered public accounting firm.

 

18



Table of Contents

 

Signature

 

 

The Plan. Pursuant to the requirements for the Securities Exchange Act of 1934, the Benefits Administrative Committee has duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

TOTAL PETROCHEMICALS & REFINING USA,

 

INC. CAPITAL ACCUMULATION PLAN

 

 

 

 

 

 

Dated: June 26, 2015

/s/ ISABELLE KIEFFER

 

 

 

Isabelle Kieffer,

 

Vice President and CFO

 



Table of Contents

 

Index to Exhibits

 

 

 

Exhibit
Number

 

Description

 

 

 

23.1

 

Consent of Independent Registered Public Accounting Firm

23.2

 

Consent of Independent Registered Public Accounting Firm