MDU Resources' 2006 11-K
UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
11-K
x
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE
ACT OF 1934
For
the fiscal year ended December 31, 2006
OR
£
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES
EXCHANGE
ACT OF 1934
For
the transition period from ______________ to
________________
Commission
file number 1-3480
MDU
RESOURCES GROUP, INC.
401(k)
RETIREMENT PLAN
(Full
title of the plan)
MDU
RESOURCES GROUP, INC.
(Name
of
issuer of securities held pursuant to the plan)
MDU
RESOURCES GROUP, INC.
1200
WEST CENTURY AVENUE
P.O.
BOX 5650
BISMARCK,
NORTH DAKOTA 58506-5650
(Address
of the plan and address of the issuer’s principal executive
offices)
CONTENTS
Required
Information
|
|
|
|
Financial
Statements:
|
|
|
|
Statements
of Net Assets Available for Benefits - December 31, 2006 and
2005
|
|
|
|
Statement
of Changes in Net Assets Available for Benefits - Year ended
December 31, 2006
|
|
|
|
Notes
to Financial Statements
|
|
|
|
Supplemental
Schedules:
|
|
|
|
Schedule
H, Line 4a - Schedule of Delinquent Participant Contributions -
Year Ended December 31, 2006
|
|
|
|
Schedule
H, Line 4i - Schedule of Assets (Held at End of Year)
|
|
|
|
Report
of Independent Registered Public Accounting Firm
|
|
|
|
Signature
|
|
|
|
Exhibit:
|
|
|
|
Consent
of Independent Registered Public Accounting Firm
|
|
MDU
RESOURCES GROUP, INC.
401(k)
RETIREMENT PLAN
STATEMENTS
OF NET ASSETS AVAILABLE FOR BENEFITS
December
31,
|
|
2006
|
|
2005
|
|
Assets:
|
|
|
|
|
|
Investments
at fair value (Notes 3 and 5)
|
|
$
|
563,665,565
|
|
$
|
480,222,303
|
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents (Note 4)
|
|
|
2,788,797
|
|
|
4,528,171
|
|
|
|
|
566,454,362
|
|
|
484,750,474
|
|
|
|
|
|
|
|
|
|
Receivables:
|
|
|
|
|
|
|
|
Employer
contributions
|
|
|
6,399,278
|
|
|
5,783,818
|
|
Participant
contributions
|
|
|
1,138,687
|
|
|
889,307
|
|
Dividends
|
|
|
1,552,348
|
|
|
1,499,677
|
|
|
|
|
|
|
|
|
|
Net
assets available for benefits at fair value
|
|
|
575,544,675
|
|
|
492,923,276
|
|
|
|
|
|
|
|
|
|
Adjustments
from fair value to contract value for fully benefit-responsive investment
contracts (Note 6)
|
|
|
499,315
|
|
|
451,118
|
|
|
|
|
|
|
|
|
|
Net
assets available for benefits
|
|
$
|
576,043,990
|
|
$
|
493,374,394
|
|
The
accompanying notes are an integral part of
these
financial statements.
MDU
RESOURCES GROUP, INC.
401(k)
RETIREMENT PLAN
STATEMENT
OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Year
ended December 31, 2006
Additions
to Net Assets Attributed to:
|
|
|
|
|
|
|
|
Investment
income:
|
|
|
|
Dividends
|
|
$
|
6,073,654
|
|
Interest
|
|
|
2,814,264
|
|
Net
realized/unrealized appreciation in fair value of investments (Note
3)
|
|
|
68,423,096
|
|
|
|
|
|
|
|
|
|
77,311,014
|
|
Contributions:
|
|
|
|
|
Employers
|
|
|
16,786,742
|
|
Employees
|
|
|
27,399,733
|
|
Employee
rollover
|
|
|
4,785,468
|
|
|
|
|
|
|
|
|
|
48,971,943
|
|
|
|
|
|
|
Total
additions
|
|
|
126,282,957
|
|
|
|
|
|
|
Deductions
from Net Assets Attributed to:
|
|
|
|
|
|
|
|
|
|
Distributions
to terminated participants
|
|
|
44,175,264
|
|
Administrative
expenses
|
|
|
77,570
|
|
|
|
|
|
|
Total
deductions
|
|
|
44,252,834
|
|
|
|
|
|
|
Net
increase in net assets available for benefits before plan
mergers
|
|
|
82,030,123
|
|
|
|
|
|
|
Transfer
of assets due to plan mergers (Note 7)
|
|
|
639,473
|
|
|
|
|
|
|
Net
assets available for benefits at beginning of year
|
|
|
493,374,394
|
|
|
|
|
|
|
Net
assets available for benefits at end of year
|
|
$
|
576,043,990
|
|
The
accompanying notes are an integral part of this financial
statement.
MDU
RESOURCES GROUP, INC.
401(k)
RETIREMENT PLAN
NOTES
TO FINANCIAL STATEMENTS
1. Description
of the Plan
The
following description of the MDU Resources Group, Inc. 401(k) Retirement Plan
(the Plan) provides only general information. Participants should refer to
the
plan document for a more complete description of the Plan’s
provisions.
General
The
Plan,
formerly the MDU Resources Group, Inc. Tax Deferred Compensation Savings Plan,
was initially adopted by the Board of Directors of MDU Resources Group, Inc.
(the Company) on August 4, 1983, to be effective January 1, 1984. The Plan
is a defined contribution plan. On January 1, 1999, the name was changed and
the
Plan was amended to reflect the merger of the MDU Resources Group, Inc. Tax
Deferred Compensation Savings Plan for Collective Bargaining Unit Employees
(the
Bargaining Plan) into the Plan. Each participant in the Bargaining Plan
automatically became a participant in the Plan. The merger and the transfer
of
assets were effectuated in accordance with Sections 401(a)(12), 411(d)(6) and
414(l) of the Internal Revenue Code of 1986, as amended (the Code), and the
regulations thereunder. On May 25, 2006, the Plan designated the portion of
the
Plan invested in MDU Resources Group, Inc. Common Stock Fund as an Employee
Stock Ownership Plan (ESOP).
The
Company and any of its direct or indirect subsidiaries that participate in
the
Plan are the Employers (the Employers). The fiscal year of the Plan is the
calendar year. The Plan is subject to the provisions of the Employee Retirement
Income Security Act of 1974 (ERISA), as amended.
The
Board
of Directors of the Company may, at any time, amend or modify the Plan. The
Company has delegated to the Employee Benefits Administrative Committee (the
Committee) the authority to amend or modify the Plan; however, certain
amendments identified in the plan document are subject to approval by the Board
of Directors of the Company.
Although
it has not expressed any intent to do so, the Board of Directors of the Company
has the right under the Plan to discontinue its contributions, at any time,
and
to terminate the plan subject to the provisions of ERISA. The Board of Directors
of any Employer may, at any time, terminate participation in the Plan with
respect to such Employer. In the event of a Plan termination, participants
would
become 100 percent vested in their employer contributions.
The
Committee is the plan administrator. The Committee consists of those individuals
serving from time to time in the position of or related position of the
following: Chief Administrative Officer of the Company, Chief Financial Officer
of the Company, Vice President - Human Resources of the Company, and any number
of other individuals appointed by the Chief Executive Officer of the Company
who
are employed by the Company or an affiliate of the Company. The recordkeeper
and
trustee of the Plan are New York Life Investment Management LLC (the
Recordkeeper) and New York Life Trust Company (the Trustee), respectively.
Eligibility
Generally,
employees may participate in the Plan upon hire if they are at least 18 years
of
age and regular full-time employees or part-time employees with at least 1,000
hours of service in a year.
Deferred
Savings Contributions
The
Plan
allows participants who are highly compensated employees to elect pre-tax
deferral contributions varying from one percent through 22 percent and
participants who are not highly compensated employees to elect pre-tax deferral
contributions varying from one percent to 50 percent, in one percent
increments, of eligible compensation for each pay period, up to a maximum
pre-tax deferral contribution of $15,000 for the 2006 Plan year. The Plan also
allows participants who are eligible to make pre-tax deferral contributions
and
will have attained age 50 before the close of the Plan year to make
catch-up elective deferrals of up to $5,000 for 2006.
Employer
Matching Contributions
Each
participant’s Employer may elect to provide a standard matching contribution,
equal to a percentage of such participant’s monthly pre-tax deferral
contributions up to a specified percent of the participant’s compensation as
provided under the Plan or as adopted by the Employer and approved by the
Committee. In addition, the participant’s Employer may make an additional
discretionary variable matching contribution based on the Employer’s attainment
of pre-determined earnings levels. As of August 1, 2005, all matching
contributions are made in cash to the participant’s Matching Contribution
Account and invested as directed by the participant.
Profit
Sharing/Special Contributions
Profit
sharing contributions are made based on the discretion of the Board of Directors
of the Company or Board of Directors of any of the Employers. Special
contributions are nondiscretionary contributions made to certain eligible
employees equal to a certain percent of their eligible compensation or an amount
based on hours worked. Participants may choose to invest profit sharing/special
contributions allocated to their individual accounts in any or all of the
available investment options. Profit sharing/special contributions totaling
$7.4
million and $5.4 million were credited to participant accounts for the years
ended December 31, 2006 and 2005, respectively.
Rollover
Contributions
The
Plan
accepts rollover contributions from an eligible retirement plan or an individual
retirement account that holds only assets distributed from a qualified plan,
including after-tax employee contributions.
Participant
Accounts
The
Employers remit all authorized contributions made by the participants to the
Trustee to be held in trust and invested for the respective accounts of the
participants, pursuant to the terms of a trust agreement effective January
1,
1998, as amended. Individual accounts are maintained for each participant of
the
Plan. Each participant’s account is credited with deferred savings
contributions, employer matching contributions, profit sharing/special
contributions, rollover contributions and allocated investment earnings and
losses.
Investment
Options
An
election is made by each participant to allocate contributions in one percent
increments to any or all of the following 13 currently available investment
options:
- |
MDU
Resources Group, Inc. Common Stock Fund (MDU Resources Stock
Fund)
|
- |
New
York Life Insurance Anchor Account - Stable Value
Option
|
- |
American
Funds - EuroPacific Growth Fund - International Growth Mutual
Fund
|
- |
American
Funds - The Growth Fund of America - Growth Mutual
Fund
|
- |
Baron
Asset Fund - Growth Mutual Fund
|
- |
Davis
New York Venture Fund - Growth Mutual
Fund
|
- |
Dodge
& Cox Balanced Fund - Growth and Income Mutual
Fund
|
- |
Forward
Hoover Small Cap Equity Fund - Growth Mutual
Fund
|
- |
MainStay
Indexed Bond Fund - Income Mutual
Fund
|
- |
MainStay
S&P 500 Index Fund - Growth and Income Mutual
Fund
|
- |
MainStay
Small Cap Opportunity Fund - Growth Mutual
Fund
|
- |
Royce
Total Return Fund - Small-Cap Value
Fund
|
- |
AllianceBernstein
International Value Fund - International Value Mutual
Fund
|
In
February 2007, the Templeton Foreign Fund investment option was replaced with
the AllianceBernstein International Value Fund.
Contributions
to the MDU Resources Stock Fund are used by the Trustee to purchase shares
of
MDU Resources Group, Inc. common stock directly on the open market, or to
purchase shares of authorized but unissued common stock directly from the
Company if the Company chooses to issue new stock. Open market purchases may
be
made at such prices as the Trustee may determine in its sole and absolute
discretion.
Vesting
A
participant’s interest in a Deferred Savings Contribution Account, Matching
Contribution Account or a Rollover Account is at all times fully vested and
nonforfeitable. Generally, a participant’s interest in a Profit Sharing/Special
Contribution Account is 100 percent vested after completing three years of
service; however, certain grandfathered vesting schedules are maintained due
to
plan mergers. Participants are 100% vested in the dividends paid on the MDU
Resources Stock Fund regardless of years of service. Participant accounts are
valued on a daily basis.
Distributions
and Withdrawals
The
amount credited to a participant’s Deferred Savings Contribution Account,
Matching Contributions Account and Rollover Account shall become payable to
the
participant or the participant’s beneficiary/beneficiaries, as applicable, upon
death, retirement, disability, or other termination of employment with the
Employers. The distribution of such amounts will be in accordance with the
Plan,
based on the method of payment elected by the participant or designated
beneficiary/ beneficiaries. Generally, the Plan only allows single-sum
distributions or annual installments over a period of time, not to exceed five
years; however, certain grandfathered distribution features are maintained
due
to plan mergers.
Distributions
with respect to investment options other than the MDU Resources Stock Fund
are
in the form of cash. Distributions with respect to the MDU Resources Stock
Fund
are in the form of stock certificates, except for distributions of fractional
shares which are in the form of cash. Any MDU Resources Group, Inc. Common
Stock
included in a direct transfer to an individual retirement account or other
qualified plan will be electronically transferred to the individual retirement
account or to the qualified plan’s custodian.
A
participant may make in-service withdrawals (hardship or age 59 1/2) under
certain conditions. Distributions from a participant’s Rollover Account may be
elected at any time.
Participant
Loans
A
participant may be eligible to obtain a loan from the Plan. The maximum amount
available for a loan is the lesser of $50,000 or one-half of the participant’s
vested account balance, subject to certain limitations. Loans must be repaid
over specified periods through payroll deduction and bear interest at a
commercially reasonable rate in effect at the time the loan is made, as
determined by the Committee.
Forfeited
Accounts
The
total
forfeited non-vested Profit Sharing Account funds used to reduce employer profit
sharing contributions to the Plan for 2006 were approximately $293,000.
2. Summary
of Significant Accounting Policies
Basis
of Accounting
The
financial statements of the Plan are maintained on an accrual
basis.
Investment
Valuation
Investments
held by the Plan are carried at fair value. Fair value for the MainStay Cash
Reserves Fund approximates cost. The Plan’s other investment valuations, as
determined by the Trustee, are based on published market quotations with the
exception of the fully benefit-responsive investment contract. The fully
benefit-responsive investment contract is stated at fair value and then adjusted
to contract value.
Fair
value of the contract is calculated by discounting the related cash flows of
the
contract based on the yield of the underlying investments at December 31.
Participant loans are valued based upon remaining unpaid principal balance
plus
any accrued but unpaid interest.
New
Accounting Standards
The
financial statements reflect the retroactive adoption of Financial Accounting
Standards Board Staff Position Nos. 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”). As required by the FSP, the statements of net assets available for
benefits presents investment contracts at fair value as well as an additional
line item showing an adjustment of fully benefit-responsive contracts from
fair
value to contract value. The statement of changes in net assets available for
benefits is presented on a contract value basis and was not affected by the
adoption of the FSP. The adoption of the FSP did not impact the amount of net
assets available for benefits at December 31, 2005.
Benefit
Payments
Distributions
to Plan participants are recorded when paid.
Contributions
Employer
and participant contributions are recorded by the Plan when received or
determined to be receivable. Participant contributions are deposited with the
Plan by the Employers through payroll reductions.
Administrative
Expenses
Administrative
expenses of the Plan related to Trustee, recordkeeping, legal and audit fees
are
paid primarily by the Employers. Fees or commissions associated with each of
the
investment options other than the MDU Resources Stock Fund are paid primarily
by
participants as a deduction from the amount invested or an offset to investment
earnings and were approximately $1.7 million for the year ended December 31,
2006. Administrative expenses of the Plan related to the MDU Resources Stock
Fund commissions and loan fees were paid by the Plan and were approximately
$78,000 for the year ended December 31, 2006. All other administrative
expenses were paid by the Company.
Use
of Estimates
The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and changes therein, and disclosure of contingent assets and
liabilities. Actual results could differ from those estimates.
Other
Securities
transactions are recorded on a trade date basis. Dividend income is recorded
on
the ex-dividend date. Interest income is recorded as earned.
3. Investments
The
following presents investments that represent 5 percent or more of the Plan’s
net assets at December 31:
|
|
2006
|
|
2005
|
|
MDU
Resources Stock Fund
|
|
$
|
295,071,299
|
|
$
|
259,113,947
|
|
New
York Life Insurance Anchor Account
|
|
|
52,523,195
|
|
|
47,223,309
|
|
Dodge
& Cox Balanced Fund
|
|
|
50,010,643
|
|
|
40,938,010
|
|
MainStay
S&P 500 Index Fund
|
|
|
32,772,736
|
|
|
27,971,664
|
|
The
Growth Fund of America
|
|
|
30,159,125
|
|
|
25,415,343
|
|
During
2006, the fair value of the Plan’s investments (including gains and losses on
investments bought and sold, as well as held during the year) appreciated as
follows:
MDU
Resources Stock Fund
|
|
$
|
44,936,243
|
|
Mutual
Funds
|
|
|
23,486,853
|
|
|
|
$
|
68,423,096
|
|
4. Cash
and Cash Equivalents
Cash
and
cash equivalents represent funds temporarily invested in the MainStay Cash
Reserves Fund to provide liquidity for fund reallocations and distributions
of
the MDU Resources Stock Fund.
5. Nonparticipant-directed
Investments
Beginning
August 1, 2005, all contributions are invested as directed by each participant.
There are no nonparticipant-directed assets at December 31, 2006 and 2005.
6. Investment
Contract with Insurance Company
The
Plan
has a fully benefit-responsive investment contract with New York Life Insurance
Company (NYL Insurance). NYL Insurance maintains the contributions in a general
account, which is credited with earnings on the underlying investments and
charged for participant withdrawals and administrative expenses. The contract
is
included in the financial statements at fair value and then adjusted to contract
value as reported to the Plan by NYL Insurance. Contract value represents
contributions made under the contract, plus interest and dividends credited,
less participant withdrawals and administrative expenses. Participants may
ordinarily direct the withdrawal or transfer of all or a portion of their
investment at contract value. The contract has certain restrictions that impact
the ability to collect the full contract value. For example, withdrawals due
to
events initiated by the Company including, but not limited to, total or partial
termination of the Plan, group lay-offs or early retirement incentives, may
result in a penalty if these withdrawals exceed limitations defined in the
contract. The Company believes that the occurrence of events that would cause
the plan to transact at less than contract value is not probable. NYL Insurance
may not terminate the contract at any amount less than contract
value.
NYL
Insurance is contractually obligated to pay the principal and any interest
and
dividends that have been credited to the Plan. The crediting interest rate
is
based on a formula agreed upon with the issuer, but may not be less than 0%.
Such interest rates are reviewed not less frequently than quarterly nor more
frequently than daily for resetting.
|
|
2006
|
|
2005
|
|
Average
yields:
|
|
|
|
|
|
Based
on annualized earnings *
|
|
|
5.09
|
%
|
|
4.60
|
%
|
Based
on interest rate credited to participants **
|
|
|
4.58
|
%
|
|
4.08
|
%
|
*
|
Computed
by dividing the annualized one-day actual earnings of the contract
on the
last day of the plan year by the fair value of the investments on
the same
date.
|
**
|
Computed
by dividing the annualized one-day earnings credited to participants
on
the last day of the plan year by the fair value of the investments
on the
same date. The difference between annualized earnings and the interest
rate credited to participants is due to a 50 basis point administrative
fee.
|
7. Plan
Mergers
On
December 1, 2006, the Granite City Ready Mix 401(k) Plan for Union Employees
(Granite City Union Plan) merged into the Plan. The net assets transferred
by
the Granite City Union Plan were $639,473.
8. Federal
Income Taxes
The
Internal Revenue Service (IRS) has determined and informed the Company by a
letter dated March 26, 2003, that the Plan and related trust are designed for
qualification as exempt from federal income taxes in accordance with applicable
sections of the Code. The IRS based its determination on the application the
Plan submitted on February 22, 2002. Although the Plan has been amended since
submitting the determination letter application, the Company believes that
the
Plan is designed and is currently being operated in compliance with the
applicable requirements of the Code.
On
January 30, 2007, an application was made to the IRS for determination on the
qualification of the Plan for those amendments that have occurred since the
prior determination letter. The Company believes that the Plan, as amended,
continues to meet the requirements for tax qualification. The Plan will take
all
necessary steps to maintain its qualified tax status.
9. Related-Party
Transactions
The
New
York Life Insurance Anchor Account, MainStay Indexed Bond Fund, MainStay S&P
500 Index Fund, MainStay Small Cap Opportunity Fund and MainStay Cash Reserves
Fund are managed by and are related parties to the Trustee. These arrangements
qualify as exempt party-in-interest transactions.
10. Prohibited
Transactions
There
were no nonexempt prohibited transactions, other than those listed in Schedule
H, Line 4a, Schedule of Delinquent Participant Contributions, with respect
to
the Plan during the plan year ended December 31, 2006.
11. Reconciliation
of the Financial Statements to the Form 5500
The
following is a reconciliation of net assets available for benefits per the
financial statements at December 31, 2006 to the Form 5500:
Net
assets available for benefits per the financial statements
|
|
$
|
576,043,990
|
|
Deemed
distributions
|
|
|
(52,182
|
)
|
Net
assets available for benefits per the Form 5500
|
|
$
|
575,991,808
|
|
The
following is a reconciliation of distributions to participants per the financial
statements at December 31, 2006 to the Form 5500:
Total
distributions to participants per the financial statements
|
|
$
|
44,175,264
|
|
Add
deemed distributions
|
|
|
52,182
|
|
Total
distributions to participants per the Form 5500
|
|
$
|
44,227,446
|
|
SUPPLEMENTAL
SCHEDULES
MDU
RESOURCES GROUP, INC.
401(k)
RETIREMENT PLAN
EMPLOYER
IDENTIFICATION NUMBER (41-0423660) - PLAN NUMBER (004)
SCHEDULE
H, LINE 4a - SCHEDULE OF DELINQUENT PARTICIPANT
CONTRIBUTIONS
Year
Ended December 31, 2006
|
|
Participant
Contributions
Transferred
Late to Plan
|
Total
That Constitute Nonexempt
Prohibited
Transactions
|
|
|
$39,318
|
$39,318
|
MDU
RESOURCES GROUP, INC.
401(k)
RETIREMENT PLAN
EMPLOYER
IDENTIFICATION NUMBER (41-0423660) - PLAN NUMBER (004)
SCHEDULE
H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)
December
31, 2006
Issuer
|
Description
|
Cost
|
Current
Value
|
|
|
|
|
MDU
Resources Group, Inc.
|
|
|
|
Common
Stock *
|
11,508,241 shares
|
$131,098,033
|
$295,071,299
|
|
|
|
|
Mutual
Funds:
|
|
|
|
American
Funds - EuroPacific Growth Fund
|
296,841
units
|
11,732,015
|
13,648,765
|
American
Funds - The Growth Fund of America
|
923,427
units
|
24,658,521
|
30,159,125
|
Baron
Asset Fund
|
287,656
units
|
14,746,099
|
17,201,858
|
Davis
New York Venture Fund
|
365,667
units
|
11,310,981
|
14,085,505
|
Dodge
& Cox Balanced Fund
|
574,307
units
|
43,520,165
|
50,010,643
|
Forward
Hoover Small Cap Equity Fund
|
383,366
units
|
7,703,557
|
7,847,508
|
MainStay
Indexed Bond Fund *
|
1,223,287
units
|
13,241,733
|
13,040,235
|
MainStay
S&P 500 Index Fund *
|
1,002,531
units
|
28,540,755
|
32,772,736
|
MainStay
Small Cap Opportunity Fund *
|
581,152
units
|
11,136,471
|
12,122,838
|
Royce
Total Return Fund
|
532,065
units
|
6,465,746
|
7,315,887
|
Templeton
Foreign Fund
|
603,849
units
|
7,096,545
|
8,236,495
|
|
|
|
|
Money
Market Fund:
|
|
|
|
MainStay
Cash Reserves Fund *
|
2,788,797
units
|
2,788,797
|
2,788,797
|
|
|
|
|
Investment
Contract:
|
|
|
|
New
York Life Insurance Anchor Account *
|
52,523,195 units
|
52,523,195
|
52,523,195
|
|
|
|
|
Participant
Loan Funds *
|
5.00% to 11.50%**
|
---
|
10,128,791
|
|
|
|
|
|
|
$366,562,613
|
$566,953,677
|
*
Indicates party-in-interest investment.
**
Loan
maturities range from January 1, 2007 through November 5, 2021.
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
MDU
Resources Group, Inc.:
We
have
audited the accompanying statements of net assets available for benefits of
the
MDU Resources Group, Inc. 401(k) Retirement Plan (the "Plan") as of
December 31, 2006 and 2005, and the related statement of changes in net
assets available for benefits for the year ended December 31, 2006. These
financial statements are the responsibility of the Plan’s management. Our
responsibility is to express an opinion on these financial statements based
on
our audits.
We
conducted our audits 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. The Plan is not required to have,
nor were we engaged to perform, an audit of its internal control over financial
reporting. Our audits 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 Plan’s 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, such financial statements present fairly, in all material respects,
the
net assets available for benefits of the Plan as of December 31, 2006 and
2005, and the changes in net assets available for benefits for the year ended
December 31, 2006, in conformity with accounting principles generally
accepted in the United States of America.
Our
audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules as listed
in
the table of contents are presented for the purpose of additional analysis
and
are not a required part of the basic financial statements, but are supplementary
information required by the Department of Labor’s Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act
of
1974, as amended. These schedules are the responsibility of the Plan’s
management. Such schedules have been subjected to the auditing procedures
applied in our audit of the basic 2006 financial statements and, in our opinion,
are fairly stated in all material respects when considered in relation to the
basic financial statements taken as whole.
/s/
DELOITTE & TOUCHE LLP
Minneapolis,
MN
June
28,
2007
SIGNATURE
The
Plan.
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Employee Benefits Administrative Committee has duly caused this annual report
to
be signed on its behalf by the undersigned hereunto duly
authorized.
MDU
Resources
Group, Inc.
401(k)
Retirement Plan
Date:
June
28, 2007 By
/s/
Cindy C. Redding
Cindy
C.
Redding
Chairman,
Employee
Benefits
Administrative
Committee
CONSENT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We
consent to the incorporation by reference in Registration Statement
No. 333-139156 of MDU Resources Group, Inc. on Form S-8 of our report dated
June 28, 2007, appearing in this Annual Report on Form 11-K of the MDU Resources
Group, Inc. 401(k) Retirement Plan for the year ended December 31,
2006.
/s/
DELOITTE & TOUCHE LLP
Minneapolis,
MN
June
28,
2007