SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(MARK ONE)
X Annual Report Pursuant to Section 15(d) of the
---
Securities Exchange Act of 1934
For the fiscal year ended December 31, 1995
OR
Transition Report Pursuant to Section 15(d) of the
---
Securities Exchange Act of 1934 for the
transition period from _________ to __________
Commission File # 1-4252
UIC 401(K) RETIREMENT SAVINGS PLAN
-----------------------------------
(Full title of the plan)
UNITED INDUSTRIAL CORPORATION
-----------------------------
(Name of the issuer of the securities held pursuant to the plan)
United Industrial Corporation
18 East 48th Street
New York, New York 10017
--------------------------
(Address of principal executive office)
<PAGE>
REQUIRED INFORMATION
Item 4.
-------
The financial statements and schedules of the UIC 401(k) Retirement
Savings Plan for the year ended December 31, 1995 (attached).
Exhibits
--------
23.1 Consent of Ernst & Young LLP.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the 401(k) Committee of the UIC 401(k) Retirement Savings Plan (the
"Plan"), which administers the Plan, has duly caused this annual
report to be signed on its behalf by the undersigned, thereunto duly
authorized, on the 28th day of June, 1996.
UIC 401(K) RETIREMENT SAVINGS PLAN
By: /s/ Paul J. Michaud
--------------------------------------------
Paul J. Michaud
Committee Member
<PAGE>
Audited Financial Statements and Schedules
UIC 401(k) Retirement Savings Plan
Years ended December 31, 1995 and 1994
with Report of Independent Auditors
<PAGE>
UIC 401(k) Retirement Savings Plan
Audited Financial Statements and Schedules
Years ended December 31, 1995 and 1994
CONTENTS
Report of Independent Auditors .......................................1
Financial Statements
Statements of Net Assets Available for Plan Benefits...................2
Statements of Changes in Net Assets Available for Plan Benefits........3
Notes to Financial Statements..........................................4
Department of Labor Schedules
Item 27a--Schedule of Assets Held for Investment Purposes.............10
Item 27d--Schedule of Reportable Transactions.........................11
<PAGE>
ERNST & YOUNG LLP *One North Charles *Phone: 410 539 7940
Baltimore, Maryland 21201
Report of Independent Auditors
Administrative Committee
UIC 401(k) Retirement Savings Plan
We have audited the accompanying statements of net assets available for plan
benefits of the UIC 401(k) Retirement Savings Plan (the "Plan") as of December
31, 1995 and 1994, and the related statements of changes in net assets available
for plan benefits for the years 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 audits.
We conducted our audits in accordance with generally accepted auditing
standards. 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 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 plan benefits of the Plan at
December 31, 1995 and 1994, and the changes in its net assets available for plan
benefits for the years then ended, in conformity with generally accepted
accounting principles.
Our audits were made for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment purposes as of December 31, 1995 and reportable transactions
for the year then ended are presented for purposes of complying with the
Department of Labor's Rule and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974, and are not a required part
of the financial statements. The supplemental schedules have been subjected to
the auditing procedures applied in our audit of the 1995 financial statements
and, in our opinion, are fairly stated in all material respects in relation to
the 1995 financial statements taken as a whole.
ERNST & YOUNG LLP
June 7, 1996
Ernst & Young LLP is a member of Ernst & Young International, Ltd.
1
<PAGE>
<TABLE>
<CAPTION>
UIC 401(k) Retirement Savings Plan
Statements of Net Assets Available for Plan Benefits
DECEMBER 31
1995 1994
------------ -----------
<S> <C> <C>
ASSETS
Investments, stated at fair value:
Fidelity Magellan Fund $23,897,306 $16,558,075
Fidelity Managed Income Portfolio 18,627,395 17,766,454
Fidelity Growth & Income Fund 5,945,845 2,988,589
Fidelity Retirement Government Money Market Fund 1,181,631 721,253
Fidelity Contrafund 2,377,157 646,463
Fidelity Investment Grade Bond Fund 407,306 46,628
United Industrial Corporation Common Stock 231,465 67,025
Participant loans 1,276,836 837,497
----------- -----------
Net assets available for Plan benefits $53,944,941 $39,631,984
=========== ===========
</TABLE>
See accompanying notes.
2
<PAGE>
<TABLE>
<CAPTION>
UIC 401(k) Retirement Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits
YEAR ENDED DECEMBER 31
1995 1994
----------- ------------
<S> <C> <C>
ADDITIONS
Employee contributions $ 4,495,503 $ 3,775,610
Employer contributions 1,197,912 --
Rollover contributions 2,258,061 84,510
Investment income:
Fidelity Magellan Fund 1,385,264 647,391
Fidelity Managed Income Portfolio 1,096,507 964,737
Fidelity Growth & Income Fund 287,152 201,597
Fidelity Retirement Government Money Market Fund 64,807 27,156
Fidelity Contrafund 180,475 --
Fidelity Investment Grade Bond Fund 18,903 1,062
United Industrial Corporation Stock Fund 7,990 2,860
Interest on loans to participants 90,846 65,487
------------ ------------
Total investment income 3,131,944 1,910,290
------------ ------------
11,083,420 5,770,410
DEDUCTIONS
Withdrawals 3,020,175 2,383,518
Net realized gain (loss) on investments 609,241 (60,051)
Net unrealized appreciation (depreciation) in aggregate
fair value of investments 5,640,471 (1,042,459)
------------ ------------
Net increase 14,312,957 2,284,382
Net assets available for Plan benefits at beginning of
year 39,631,984 37,347,602
------------ ------------
Net assets available for Plan benefits at end of year $ 53,944,941 $ 39,631,984
============ ============
</TABLE>
See accompanying notes.
3
<PAGE>
UIC 401(k) Retirement Savings Plan
Notes to Financial Statements
1. SIGNIFICANT ACCOUNTING POLICIES
Investments in the Fidelity Magellan Fund, Fidelity Growth & Income Fund,
Fidelity Managed Income Portfolio, Fidelity Retirement Government Money Market
Fund, Fidelity Contrafund and Fidelity Investment Grade Bond Fund are reported
at current redemption value. The United Industrial Corporation Common Stock is
reported at market value, based on published market prices.
The change in the difference between cost and market value is reflected in the
statements of changes in net assets available for plan benefits as net
unrealized appreciation or depreciation in the aggregate fair value of
investments. The net realized gain or loss on investments is the difference
between the proceeds and the specific cost of the investments.
Rollover contributions represent transfers from other qualified retirement
plans.
Administrative expenses associated with the UIC 401(k) Retirement Savings Plan
(the "Plan"), including the amount paid to Fidelity Management Trust Co. for
acting as custodian of the investments of the Plan, were paid by United
Industrial Corporation (the "Company") in 1995 and 1994.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increases and decreases in net assets during the period.
Actual results could differ from those estimates.
2. DESCRIPTION OF THE PLAN
The Plan is a defined contribution plan. The purpose of the Plan is to encourage
employees to save regularly and to provide additional funds upon retirement.
Contributions are made by employees through payroll deductions and submitted to
Fidelity Management Trust Company Cash Reserve Fund, then subsequently deposited
in the investment option account(s) selected by the employee. The Company
matches employees' contributions and has a profit sharing provision as specified
in the Plan document. Employer contributions are vested after five years of
service. The Company is the named fiduciary which controls and manages the
operations of the Plan and acts as Administrator.
4
<PAGE>
UIC 401(k) Retirement Savings Plan
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
All employees aged 21 or more who have completed six months of continuous
employment and worked over 1,000 hours with the Company (including its
participating subsidiaries) are eligible to participate in the Plan.
Participating employees contribute to the Plan through payroll deductions in
amounts ranging from 2% to 15% of their earnings up to a limit of $9,240 for
1995 and 1994, respectively. Contributions to the Plan are invested in the
available investment options in accordance with the participants' elections. All
employee contributions to the Plan are immediately vested.
The Company has the right to terminate the Plan at any time. In the event of a
termination, the participants accounts shall be distributed to them in cash or
in property or in any combination of cash and property.
Information about the Plan and the vesting and benefit provisions is contained
in the Summary Plan Description of the Plan. Copies are available from the Human
Resources Department of the Company.
3. INVESTMENTS
The fair value of individual investments that represent 5% or more of the Plan's
net assets available for Plan benefits was as follows:
DECEMBER 31
1995 1994
-------------- --------------
Fidelity Magellan Fund $23,897,306 $16,558,075
Fidelity Managed Income Portfolio 18,627,395 17,766,454
Fidelity Growth & Income Fund 5,945,845 2,988,589
4. INCOME TAX STATUS
The Internal Revenue Service has determined and informed the Plan by a letter
dated January 16, 1996 that the Plan and related trust are designed in
accordance with applicable sections of the Internal Revenue Code (IRC), and is
therefore not subject to tax under present income tax laws. The Plan sponsor
believes that the Plan continues to qualify and operate as designed.
5
<PAGE>
UIC 401(k) Retirement Savings Plan
Notes to Financial Statements (continued)
5. RECONCILIATION TO FORM 5500
The following differences were noted in comparing the Form 5500 for the year
ended December 31, 1995 to the accompanying financial statements:
<TABLE>
<CAPTION>
FORM 5500 AMOUNT PER
LINE NUMBER AMOUNT PER FINANCIAL
DESCRIPTION FORM 5500 STATEMENTS DIFFERENCE
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
32 b (4)(C) Net gain (loss) on sale of
assets $ 5,652 $ 609,241 $ (603,589)
32 b (5) Unrealized appreciation
(depreciation) of assets (13,026) 5,640,471 (5,653,497)
32 b (6) Net investment gain
from common/ collective
trusts 1,096,507 - 1,096,507
32 b (10) Net investment gain
from registered
investment companies 8,128,880 - 8,128,880
- - Investment income from
common/collective trusts
and registered investment
companies (excluding
money market funds) - 2,968,301 (2,968,301)
---------------------------------------------------------
$ 9,218,013 $ 9,218,013 $ -
=========================================================
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
UIC 401(k) Retirement Savings Plan
Notes to Financial Statements (continued)
6. STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
DECEMBER 31, 1995
--------------------------------------------------------------------------------------------------------------
FIDELITY
FIDELITY RETIREMENT FIDELITY
FIDELITY MANAGED GOVERNMENT FIDELITY INVESTMENT UIC
MAGELLAN INCOME MONEY MARKET GROWTH & FIDELITY GRADE BOND COMMON
FUND PORTFOLIO FUND INCOME FUND CONTRAFUND FUND STOCK FUND LOAN FUND TOTAL
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investments at fair
value $23,897,306 $18,627,395 $1,181,631 $5,945,845 $2,377,157 $407,306 $231,465 $52,668,105
Participant loans -- -- -- -- -- -- -- $1,276,836 1,276,836
--------------------------------------------------------------------------------------------------------------
Net assets available
for Plan benefits $23,897,306 $18,627,395 $1,181,631 $5,945,845 $2,377,157 $407,306 $231,465 $1,276,836 $53,944,941
==============================================================================================================
<CAPTION>
DECEMBER 31, 1994
--------------------------------------------------------------------------------------------------------------
FIDELITY
FIDELITY RETIREMENT FIDELITY
FIDELITY MANAGED GOVERNMENT FIDELITY INVESTMENT UIC
MAGELLAN INCOME MONEY MARKET GROWTH & FIDELITY GRADE BOND COMMON
FUND PORTFOLIO FUND INCOME FUND CONTRAFUND FUND STOCK FUND LOAN FUND TOTAL
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investments at fair
value $16,558,075 $17,766,454 $721,253 $2,988,589 $646,463 $46,628 $67,025 $38,794,487
Participant loans -- -- -- -- -- -- -- $837,497 837,497
--------------------------------------------------------------------------------------------------------------
Net assets available
for Plan benefits $16,558,075 $17,766,454 $721,253 $2,988,589 $646,463 $46,628 $67,025 $837,497 $39,631,984
==============================================================================================================
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
UIC 401(k) Retirement Savings Plan
Notes to Financial Statements (continued)
7. STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
YEAR ENDED DECEMBER 31, 1995
-------------------------------------------------------------------------------------------------------
FIDELITY
FIDELITY RETIREMENT FIDELITY
FIDELITY MANAGED GOVERNMENT FIDELITY INVESTMENT UIC
MAGELLAN INCOME MONEY GROWTH & FIDELITY GRADE BOND COMMON
FUND PORTFOLIO MARKET FUND INCOME FUND CONTRAFUND FUND STOCK FUND LOAN FUND TOTAL
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS
Employee contributions $1,784,582 $1,371,997 $154,438 $719,572 $336,221 $99,987 $28,706 $4,495,503
Employer contributions 453,605 378,525 50,821 187,476 86,331 32,277 8,877 1,197,912
Rollover contributions 444,335 577,324 338,381 434,188 285,378 123,958 26,385 $28,112 2,258,061
Investment income 1,385,264 1,096,507 64,807 287,152 180,475 18,903 7,990 90,846 3,131,944
-------------------------------------------------------------------------------------------------------
4,067,786 3,424,353 608,447 1,628,388 888,405 275,125 71,958 118,958 11,083,420
DEDUCTIONS
Withdrawals (1,108,839) (1,241,677) (74,133) (378,642) (81,932) (68,298) (3,387) (63,267) (3,020,175)
Net realized gain (loss) on
investments 452,708 -- -- 116,668 41,956 2,181 (4,272) -- 609,241
Net unrealized appreciation
(depreciation) in
aggregate fair value of
investments 4,430,608 -- -- 996,958 200,851 15,156 (3,102) -- 5,640,471
Interfund transfers, net (503,032) (1,321,735) (73,936) 593,884 681,414 136,514 103,243 383,648 --
-------------------------------------------------------------------------------------------------------
Net increase 7,339,231 860,941 460,378 2,957,256 1,730,694 360,678 164,440 439,339 14,312,957
Net assets available for
Plan benefits at
beginning of year 16,558,075 17,766,454 721,253 2,988,589 646,463 46,628 67,025 837,497 39,631,984
-------------------------------------------------------------------------------------------------------
Net assets available for
Plan benefits at end of
year $23,897,306 $18,627,395 $1,181,631 $5,945,845 $2,377,157 $407,306 $231,465 $1,276,836 $53,944,941
=======================================================================================================
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
UIC 401(k) Retirement Savings Plan
Notes to Financial Statements (continued)
7. STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION (CONTINUED)
YEAR ENDED DECEMBER 31, 1994
-------------------------------------------------------------------------------------------------------
FIDELITY
FIDELITY RETIREMENT FIDELITY
FIDELITY MANAGED GOVERNMENT FIDELITY INVESTMENT UIC
MAGELLAN INCOME MONEY GROWTH & FIDELITY GRADE BOND COMMON
FUND PORTFOLIO MARKET FUND INCOME FUND CONTRAFUND FUND STOCK FUND LOAN FUND TOTAL
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS
Employee contributions $1,633,999 $1,384,307 $101,643 $529,581 $94,512 $13,558 $18,010 -- $3,775,610
Rollover contributions 17,434 7,385 -- -- -- -- 453 $59,238 84,510
Investment income 647,391 964,737 27,156 201,597 -- 1,062 2,860 65,487 1,910,290
-------------------------------------------------------------------------------------------------------
2,298,824 2,356,429 128,799 731,178 94,512 14,620 21,323 124,725 5,770,410
DEDUCTIONS
Withdrawals (903,634) (1,139,240) (93,584) (182,109) (6,938) -- (2,674) (55,339) (2,383,518)
Net realized gain (loss) on
investments (54,420) -- -- (5,552) (787) -- 708 -- (60,051)
Net unrealized depreciation
in aggregate fair value
of investments (887,068) -- -- (140,214) (7,671) (1,327) (6,179) -- (1,042,459)
Interfund transfers, net (419,835) (570,551) (24,659) 390,865 567,347 33,335 14,409 9,089 --
-------------------------------------------------------------------------------------------------------
Net increase 33,867 646,638 10,556 794,168 646,463 46,628 27,587 78,475 2,284,382
Net assets available for
Plan benefits at
beginning of year 16,524,208 17,119,816 710,697 2,194,421 -- -- 39,438 759,022 37,347,602
-------------------------------------------------------------------------------------------------------
Net assets available for
Plan benefits at end of
year $16,558,075 $17,766,454 $721,253 $2,988,589 $646,463 $46,628 $67,025 $837,497 $39,631,984
=======================================================================================================
</TABLE>
9
<PAGE>
Department of Labor Schedules
<PAGE>
<TABLE>
<CAPTION>
UIC 401(k) Retirement Savings Plan
Item 27a--Schedule of Assets Held for Investment Purposes
December 31, 1995
DESCRIPTION CURRENT
IDENTITY OF ISSUE OF INVESTMENT COST VALUE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Fidelity Magellan Fund 277,940 shares $19,775,951 $23,897,306
Fidelity Managed Income Portfolio 18,627,395 shares 18,627,395 18,627,395
Fidelity Growth & Income Fund 219,809 shares 4,981,892 5,945,845
Fidelity Retirement Government Money Market
Fund 1,181,631 shares 1,181,631 1,181,631
Fidelity Contrafund 62,524 shares 2,184,474 2,377,157
Fidelity Investment Grade Bond Fund 55,190 shares 393,476 407,306
United Industrial Corporation Common Stock 40,255 shares 246,342 231,465
Participant loans $1,276,836 principal
balance; interest
rates from 7% to
14.5%; maturities to
10/18/10 1,276,836 1,276,836
-----------------------------------------
Total assets held for investment purposes $48,667,997 $53,944,941
=========================================
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
UIC 401(k) Retirement Savings Plan
Item 27d--Schedule of Reportable Transactions
Year Ended December 31, 1995
CURRENT
VALUE OF
ASSET ON
IDENTITY OF PARTY PURCHASE SELLING COST OF TRANSACTION
INVOLVED DESCRIPTION OF ASSETS PRICE PRICE ASSET DATE NET GAIN
- -----------------------------------------------------------------------------------------------------------------------------------
Category (iii)--Series of transactions in excess of 5% of plan assets
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Fidelity Investments Magellan Fund $5,302,985 $5,302,985
Fidelity Investments Magellan Fund $2,847,069 $2,394,361 2,847,069 $452,708
Fidelity Investments Contrafund 1,801,115 1,801,115
Fidelity Investments Contrafund 313,229 271,273 313,229 41,956
Fidelity Investments Growth & Income Fund 2,843,706 2,843,706
Fidelity Investments Growth & Income Fund 1,000,076 883,408 1,000,076 116,668
Fidelity Investments Managed Income Portfolio 4,623,924 4,623,924
Fidelity Investments Managed Income Portfolio 3,762,983 3,762,983 3,762,983 -
<FN>
There were no category (i), (ii) or (iv) reportable transactions during 1995.
</FN>
</TABLE>
11
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
----------- -----------
23.1 Consent of Independent Auditors
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement (Form
S-8, Reg. No. 33-57065) pertaining to the UIC 401(k) Retirement Savings Plan of
United Industrial Corporation and in the related Prospectus of our report dated
June 7, 1996, with respect to the financial statements and supplemental
schedules of the UIC 401(k) Retirement Savings Plan included in this Annual
Report (Form 11-K) for the year ended December 31, 1995.
ERNST & YOUNG LLP
Baltimore, Maryland
June 24, 1996
