<PAGE> 1
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
For the fiscal year ended December 31, 1994
Commission File Number 1-977
THE KNOLL GROUP RETIREMENT SAVINGS PLAN
(Full title of the Plan)
Westinghouse Electric Corporation
Westinghouse Building, 11 Stanwix Street
Pittsburgh, Pennsylvania 15222
(Name of issuer of the securities held pursuant to the Plan
and the address of its principal executive office)
<PAGE> 2
THE KNOLL GROUP
RETIREMENT SAVINGS PLAN
FINANCIAL STATEMENTS
AND SUPPLEMENTAL SCHEDULES
YEARS ENDED DECEMBER 31, 1994 AND 1993
[LOGO]
<PAGE> 3
THE KNOLL GROUP
RETIREMENT SAVINGS PLAN
FINANCIAL STATEMENTS
AND SUPPLEMENTAL SCHEDULES
YEARS ENDED DECEMBER 31, 1994 AND 1993
<PAGE> 4
THE KNOLL GROUP
RETIREMENT SAVINGS PLAN
CONTENTS
INDEPENDENT AUDITORS' REPORT 3
FINANCIAL STATEMENTS
Statements of Net Assets Available for Benefits
with Fund Information 4-5
Statements of Changes in Net Assets Available
for Benefits with Fund Information 6-7
Notes to Financial Statements 8-15
SUPPLEMENTAL SCHEDULES
Schedule of Assets Held for Investment Purposes 17
Schedule of Reportable Transactions 18
2
<PAGE> 5
INDEPENDENT AUDITORS' REPORT
To the Board of Directors of the
The Knoll Group Retirement Savings Plan
We have audited the accompanying statement of net assets available for benefits
of the Knoll Group Retirement Savings Plan (the Plan) as of December 31, 1994,
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 Knoll
Group Retirement Savings Plan as of December 31, 1993 were audited by other
auditors whose report, dated June 17, 1994, expressed an unqualified opinion on
those statements.
We conducted our audit 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 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, 1994, and the changes in net assets available for benefits for the
year then ended in conformity with generally accepted accounting principles.
Our audit was performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information included in
the supplemental schedules is presented for purposes of additional analysis and
is not a required part of the basic financial statements, but is supplementary
information required by the Department of Labor Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The fund information in the statement of net assets available for
benefits and the statement of changes in net assets available for benefits is
presented for purposes of additional analysis rather than to present the net
assets available for Plan benefits and changes in net assets available for
Plan benefits of each fund. The supplemental schedules and fund information
have been subjected to the auditing procedures applied in the audit of the
basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements taken as a
whole.
BDO SEIDMAN
June 26, 1995
3
<PAGE> 6
<TABLE>
<CAPTION>
Westinghouse MAS Vanguard
Fixed Income Balanced Windsor II
December 31, 1994 Fund Fund Equity Fund
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments
Investments and loans receivable $26,542,693 $5,136,048 $8,748,199
Transfers in process 40,481 (81,072) 15,617
Loan repayments in progress 32,207 7,078 10,677
Loans in progress (27,685) (13,582) (11,603)
- ------------------------------------------------------------------------------------------------------------
26,587,696 5,048,472 8,762,890
Receivables
Employer's contribution 23,314 23,608 44,425
Participants' contribution 178,878 59,591 103,924
- ------------------------------------------------------------------------------------------------------------
202,192 83,199 148,349
- ------------------------------------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $26,789,888 $5,131,671 $8,911,239
============================================================================================================
</TABLE>
<PAGE> 7
THE KNOLL GROUP
RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
<TABLE>
<CAPTION>
Westinghouse Equitable Equitable Equitable
Common Fixed Balanced Common Loan
Stock Fund Fund Fund Stock Fund Fund Total
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1,571,400 $ - $ - $ - $2,487,198 $44,485,538
24,974 - - - - -
2,163 - - - (52,125) -
(530) - - - 53,400 -
- -------------------------------------------------------------------------------------------------
1,598,007 - - - 2,488,473 44,485,538
5,231 - - - - 96,578
13,445 - - - - 355,838
- -------------------------------------------------------------------------------------------------
18,676 - - - - 452,416
- -------------------------------------------------------------------------------------------------
$1,616,683 $ - $ - $ - $2,488,473 $44,937,954
=================================================================================================
</TABLE>
See accompanying notes to financial statements.
4
<PAGE> 8
<TABLE>
<CAPTION>
Westinghouse MAS Vanguard
Fixed Income Balanced Windsor II
December 31, 1993 Fund Fund Equity Fund
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments and loans receivable $ 18,590,177 $ 3,742,618 $ 5,719,171
Transfers in process 29,283 (16,729) 29,876
Loan repayments in progress 42,537 12,350 11,664
Loans in progress (27,276) (16,888) (8,381)
- ------------------------------------------------------------------------------------------------------------
18,634,721 3,721,351 5,752,330
LIABILITIES
Other (15,674) - -
- ------------------------------------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $ 18,619,047 $ 3,721,351 $ 5,752,330
============================================================================================================
</TABLE>
<PAGE> 9
THE KNOLL GROUP
RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
<TABLE>
<CAPTION>
Westinghouse Equitable Equitable Equitable
Common Fixed Balanced Common Loan
Stock Fund Fund Fund Stock Fund Fund Total
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 1,686,506 $ 5,668,497 $ 642,428 $ 1,312,573 $ 2,122,226 $ 39,484,196
(42,430) 35,969 (13,156) (22,813) - -
2,058 - - - (68,609) -
(346) (14,427) (4,537) (3,145) 75,000 -
- ----------------------------------------------------------------------------------------------
1,645,788 5,690,039 624,735 1,286,615 2,128,617 39,484,196
(2,250) - - - (8,054) (25,978)
- ----------------------------------------------------------------------------------------------
$ 1,643,538 $ 5,690,039 $ 624,735 $ 1,286,615 $ 2,120,563 $ 39,458,218
==============================================================================================
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 10
<TABLE>
<CAPTION>
Westinghouse MAS Vanguard
Fixed Income Balanced Windsor II
December 31, 1994 Fund Fund Equity Fund
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ADDITIONS
Contributions
Employer $ 775,072 $ 326,489 $ 420,962
Employee, pre- and post-tax 2,867,508 1,100,689 1,491,379
Rollover 47,459 53,723 6,288
- -------------------------------------------------------------------------------------------------------------
3,690,039 1,480,901 1,918,629
Interest 9,823 128 25
Dividends 1,061,439 326,884 505,214
Realized gain (loss) from sale of assets - (61,562) 28,423
Unrealized appreciation (depreciation) 447,869 (352,642) (642,020)
- -------------------------------------------------------------------------------------------------------------
Total Additions 5,209,170 1,393,709 1,810,271
DEDUCTIONS
Plan distributions 1,673,156 443,981 495,810
Administrative expenses 7,113 3 1
- -------------------------------------------------------------------------------------------------------------
Total Deductions 1,680,269 443,984 495,811
- -------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) Prior to Interfund Transfers 3,528,901 949,725 1,314,460
Interfund transfers 4,641,940 460,595 1,844,449
- -------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) 8,170,841 1,410,320 3,158,909
NET ASSETS AVAILABLE FOR BENEFITS, beginning of year 18,619,047 3,721,351 5,752,330
- -------------------------------------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS, end of year $ 26,789,888 $ 5,131,671 $ 8,911,239
============================================================================================================
</TABLE>
<PAGE> 11
THE KNOLL GROUP
RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE
FOR BENEFITS WITH FUND INFORMATION
<TABLE>
<CAPTION>
Westinghouse Equitable Equitable Equitable
Common Fixed Balanced Common Loan
Stock Fund Fund Fund Stock Fund Fund Total
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 44,670 $ - $ - $ - $ - $ 1,567,193
161,321 - - - - 5,620,897
2,347 - - - - 109,817
-----------------------------------------------------------------------------------------------
208,338 - - - - 7,297,907
1,247 - - - 144,438 155,661
23,822 190,018 - - - 2,107,377
(28,393) - 11,272 174,569 - 124,309
(187,197) - (53,408) (222,698) - (1,010,096)
-----------------------------------------------------------------------------------------------
17,817 190,018 (42,136) (48,129) 144,438 8,675,158
143,844 292,631 13,203 18,143 82,095 3,162,863
34 16,788 2,787 5,833 - 32,559
-----------------------------------------------------------------------------------------------
143,878 309,419 15,990 23,976 82,095 3,195,422
-----------------------------------------------------------------------------------------------
(126,061) (119,401) (58,126) (72,105) 62,343 5,479,736
99,206 (5,570,638) (566,609) (1,214,510) 305,567 -
-----------------------------------------------------------------------------------------------
(26,855) (5,690,039) (624,735) (1,286,615) 367,910 5,479,736
1,643,538 5,690,039 624,735 1,286,615 2,120,563 39,458,218
-----------------------------------------------------------------------------------------------
$ 1,616,683 $ - $ - $ - $ 2,488,473 $ 44,937,954
===============================================================================================
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 12
<TABLE>
<CAPTION>
Westinghouse MAS Vanguard
Fixed Income Balanced Windsor II
December 31, 1993 Fund Fund Equity Fund
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ADDITIONS
Contributions
Employer $ 861,106 $ 320,304 $ 334,891
Employee, pre- and post-tax 3,000,857 1,114,949 1,285,041
Rollover 342,796 34,360 58,314
- ------------------------------------------------------------------------------------------------------------
4,204,759 1,469,613 1,678,246
Interfund transfers (295,121) (45,324) 412,895
Earnings from investments 1,227,492 399,724 301,519
Realized gain (loss) from sale of assets - 33,116 55,327
Unrealized appreciation (depreciation) - (134,927) 189,809
Changes in outstanding loan balances (140,181) 27,234 (78,307)
- ------------------------------------------------------------------------------------------------------------
Total Additions 4,996,949 1,749,436 2,559,489
DEDUCTIONS
Plan distributions (1,375,171) (341,552) (353,837)
Administrative expenses (5,976) - -
Other (4,689) (8,320) (12,477)
- ------------------------------------------------------------------------------------------------------------
Total Deductions (1,385,836) (349,872) (366,314)
Net Increase (Decrease) 3,611,113 1,399,564 2,193,175
NET ASSETS AVAILABLE FOR BENEFITS, beginning of year 15,007,934 2,321,787 3,559,155
- ------------------------------------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS, end of year $ 18,619,047 $ 3,721,351 $ 5,752,330
============================================================================================================
</TABLE>
<PAGE> 13
THE KNOLL GROUP
RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE
FOR BENEFITS WITH FUND INFORMATION
<TABLE>
<CAPTION>
Westinghouse Equitable Equitable Equitable
Common Fixed Balanced Common Loan
Stock Fund Fund Fund Stock Fund Fund Total
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 33,508 $ - $ - $ - $ - $ 1,549,809
123,964 - - - - 5,524,811
2,789 500 - - - 438,759
- -------------------------------------------------------------------------------------------------
160,261 500 - - - 7,513,379
(66,060) (46,475) (51,491) 91,576 - -
47,522 392,448 - - 143,970 2,512,675
(20,827) - - - - 67,616
108,980 - 76,639 210,205 - 450,706
(27,041) (252,891) (4,537) (3,145) 478,868 -
- -------------------------------------------------------------------------------------------------
202,835 93,582 20,611 298,636 622,838 10,544,376
(128,852) (442,608) (22,171) (52,366) (55,956) (2,772,513)
- (25,817) (5,513) (9,827) - (47,133)
(14,223) - - - (21,824) (61,533)
- -------------------------------------------------------------------------------------------------
(143,075) (468,425) (27,684) (62,193) (77,780) (2,881,179)
59,760 (374,843) (7,073) 236,443 545,058 7,663,197
1,583,778 6,064,882 631,808 1,050,172 1,575,505 31,795,021
- -------------------------------------------------------------------------------------------------
$1,643,538 $5,690,039 $624,735 $1,286,615 $2,120,563 $39,458,218
=================================================================================================
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 14
THE KNOLL GROUP
RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. DESCRIPTION OF PLAN
The following brief description of The Knoll Group Retirement Savings
Plan (the Plan) is provided for general information purposes only.
Participants should refer to the Summary Plan Description or the Plan agreement
for a more complete description of the Plan's provisions.
GENERAL
The Plan, established January 1, 1992, is a defined contribution plan
for all U.S. employees of The Knoll Group (the Company) who are not covered by
a collective bargaining agreement and who have completed 30 days of service.
The Plan merged assets of Company employees covered under the former Knoll
International, Inc., Employees Savings and Protection Plan, the former
Shaw-Walker Gain Plan and Company employees who previously participated in the
Westinghouse Personal Investment Plan. Participants in these former plans were
eligible for the Plan on January 1, 1992. The Company is a wholly-owned
subsidiary of Westinghouse Electric Corporation (Westinghouse). The Plan is
subject to the provisions of the Employee Retirement Income Security Act of
1974 (ERISA).
CONTRIBUTIONS
Plan participants can elect to defer up to 16 percent of their
compensation, subject to certain limitations, for the purpose of making
contributions to the Plan. The Company will match 40 percent of the first 6
percent of such participant contributions. Participants may also make
after-tax contributions to the Plan, subject to provisions in the Plan. In
addition, the Company may make discretionary contributions based on the
Company's performance. No such contributions were made during 1994 and 1993.
8
<PAGE> 15
THE KNOLL GROUP
RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
PARTICIPANT ACCOUNTS
Each participant's account is credited with the participant's
contribution, the Company's matching contribution, and allocation of Plan
earnings. Administrative expenses not paid by the Company are allocated to each
participant's account. Allocations are based on participant earnings or account
balances, as defined in the Plan Agreement. Forfeitures of participants'
nonvested Company contributions are used to reduce future Company contributions
to the Plan. The benefit to which a participant is entitled is the benefit that
can be provided from the participant's vested account.
VESTING
Amounts contributed by participants are fully vested and nonforfeitable.
Company contributions are vested in accordance with years of services. A
participant is 100 percent vested after five years of service. Plan
participants in the former Shaw-Walker Gain Plan and the Westinghouse Personal
Investment Plan are 100 percent vested in their accumulated Company
contributions as of January 1, 1992. Thereafter, vesting for Company
contributions is subject to the aforementioned vesting schedule.
INVESTMENT OPTIONS
Upon enrollment in the Plan, a participant may direct contributions in any of
four investment options.
Westinghouse Fixed Income Fund - Funds are invested in shares of a
trust that invests in a variety of U.S. government securities and guaranteed
investment contracts (GIC) with insurance companies or other financial
institutions that guarantee a fixed rate.
MAS Balanced Fund - Funds are invested in shares of a registered
investment company that invests primarily in a diversified portfolio of common
stocks and fixed income securities.
9
<PAGE> 16
THE KNOLL GROUP
RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
Vanguard Windsor II Equity Fund - Funds are invested in shares of a
registered investment company that invests primarily in common stocks.
Westinghouse Common Stock Fund - Funds are invested in common stock of
Westinghouse Electric Corporation.
Effective August 1, 1994, three funds, Equitable Fixed Fund, Equitable
Balanced Fund and the Equitable Common Stock Fund, which represented investment
options under the former Knoll International, Inc. Employees' Savings and
Protection Plan and merged with the Plan effective January 1, 1992, were
transferred to their similar investment options noted above.
ADMINISTRATION
The Knoll Group Retirement Plans Administration Committee (the Plan
Administrator) establishes rules for the administration of the Plan and has the
exclusive right to interpret the Plan and to decide any matters arising in
connection with the administration of the Plan.
BENEFITS
Any benefits provided by the Plan are paid by the trustee from assets
available for benefits. Plan members are entitled to benefits to the extent of
the balance of their account on any applicable valuation date. Each
participant's account is credited with the participant's contribution plus his
or her pro rata share of earnings (losses).
10
<PAGE> 17
THE KNOLL GROUP
RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
LOANS
Subject to limitations of the Plan agreement, the Plan may make loans
to participants. Principal and interest must be repaid over a period not to
exceed five years, unless the loan is used for a residential purchase. Interest
rates are established based on the prime rate provided by the Plan's trustee on
the last business day of the prior calendar quarter when the loan is requested,
plus 2 percent. All loans are collateralized by the participants' vested
account balance in the Plan and are repaid from payroll deductions.
2. SUMMARY OF ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The financial statements of the Plan are prepared using the accrual
basis of accounting.
INVESTMENTS
All of the Plan investments, with the exception of the Westinghouse Fixed
Income Fund, are presented at fair market value. The Westinghouse Fixed
Income Fund, composed of guaranteed investment contracts with insurance
companies and banks, is presented at contract value. Market value is determined
from market quotations and other sources as reported to the Plan by Wachovia
Bank of North Carolina, N.A., the Plan trustee. Interest income and dividend
income are recorded in the period earned.
ADMINISTRATIVE EXPENSES
Administrative expenses are paid by Knoll North America, Inc., with the
exception of management investment fees for the three Equitable Funds and the
Westinghouse Fixed Income Fund, which are paid from Plan assets.
11
<PAGE> 18
THE KNOLL GROUP
RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
INVESTMENT IN BANK COMMON AND COMMINGLED TRUST FUNDS
The Plan's Fixed Income Fund net assets are commingled in a separate trust
fund with other Corporation employer benefit plan net assets. Units of
participation are assigned to the various plans by Bankers' Trust (the trustee)
based on the beneficial interest of each plan to the beneficial interests
of the participating plans at the beginning of each month and daily as of
October 9, 1994.
3. PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the
right to terminate the Plan at any time subject to the provisions of ERISA.
In the event of termination of the Plan, the trustee shall hold the funds for
distribution and distribute to the participants the full amount standing to
their credit on the date of such termination, less the administrative costs to
the trustee for such distribution, in accordance with the Plan provisions.
4. BENEFITS AND WITHDRAWALS-IN-PROCESS
Withdrawals-in-process at December 31, 1994 and 1993 are not included
in the respective years' statement of net assets available for benefits or
the statement of changes in net assets available for benefits. These December
withdrawals-in-process are as follows:
<TABLE>
<CAPTION>
December 31, 1994 1993
-----------------------------------------------------------------------
<S> <C> <C>
Westinghouse Fixed Income Fund $ 165,023 $ 121,555
MAS Balanced Fund 42,868 16,942
Vanguard Windsor II Equity Fund 110,081 21,929
Westinghouse Common Stock Fund 7,720 135
Equitable Fixed Fund - 16,889
Equitable Balanced Fund - 1,981
Equitable Common Stock Fund - 11,197
-----------------------------------------------------------------------
$ 325,692 $ 190,628
=======================================================================
</TABLE>
12
<PAGE> 19
THE KNOLL GROUP
RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
5. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for benefits
per the financial statements to the Form 5500:
<TABLE>
<CAPTION>
December 31, 1994 1993
<S> <C> <C>
Net assets available for benefits
per the financial statements $ 44,937,954 $ 39,458,218
Amounts allocated to withdrawing
participants (325,692) (190,628)
- -----------------------------------------------------------------------
Net Assets Available for Benefits
Per the Form 5500 $ 44,612,262 $ 39,267,590
=======================================================================
</TABLE>
The following is a reconciliation of benefits paid to participants per
the financial statements to the Form 5500:
<TABLE>
<CAPTION>
Year ended December 31, 1994
- -----------------------------------------------------------------------
<S> <C>
Benefits paid to participants per the financial
statements $ 3,162,863
Add: Amounts allocated to withdrawing
participants at December 31 of current year 325,692
Less: Amounts allocated to withdrawing
participants at December 31 of prior year (190,628)
- -----------------------------------------------------------------------
Benefits Paid to Participants Per Form 5500 $ 3,297,927
=======================================================================
</TABLE>
13
<PAGE> 20
THE KNOLL GROUP
RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
Amounts allocated to withdrawing participants are recorded on the Form
5500 for benefit claims that have been processed and approved for payment prior
to December 31, 1994, but not yet paid as of that date.
6. INVESTMENTS
The Plan's investments are held in a bank-administered trust fund. The
following table presents investments. Investments that represent 5% or more of
the Plan's net assets are separately identified.
<TABLE>
<CAPTION>
December 31, 1994 1993
-----------------------------------------------------------------------
<S> <C> <C>
INVESTMENTS AT FAIR VALUE AS
DETERMINED BY QUOTED MARKET PRICE
Common Stocks
Equitable Common Stock Fund $ -- $ 1,312,573
MAS Equity Fund 2,792,065 2,185,227
Vanguard Windsor II Equity 8,748,199 5,719,171
Fund, Inc.
Bonds
MAS Special Purpose Fund 2,343,983 1,557,391
Equitable Fixed Fund -- 5,668,497
Equitable Balanced Fund -- 642,428
INVESTMENT AT CONTRACT VALUE
Westinghouse Fixed Income Fund 26,542,693 18,590,177
</TABLE>
7. INVESTMENT IN MASTER TRUST
At, December 31, 1993, the Knoll Group Retirement Savings Plan had a
beneficial interest in the assets of the Westinghouse Savings Program Master
Trust. In 1994, Knoll's parent, Westinghouse Electric Corporation,
restructured its Westinghouse Personal Savings Plan and Westinghouse Personal
Investment Plan into the Westinghouse Savings Plan. Upon completion of the
restructuring on September 30, 1994, the operations of the Westinghouse Savings
Program Master Trust were discontinued. The Knoll Group Retirement Savings Plan
continues to have a beneficial interest in the Fixed
14
<PAGE> 21
THE KNOLL GROUP
RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
Income Fund maintained by Bankers Trust, through its trustee, Wachovia
Bank of North Carolina, N.A. (see note 2).
8. TAX STATUS
The Plan obtained its latest determination letter on September 18, 1986,
in which the Internal Revenue Service (IRS) stated that the Plan, as then
designed, was in compliance with the applicable requirements of the Internal
Revenue Code (IRC). The Plan has been amended, effective January 1, 1992,
since receiving the 1986 determination letter. An application for an updated
determination letter has been filed. The Plan administrator believes that the
Plan, as is currently designed and being operated, is in compliance with the
applicable requirements of the IRC, and, as such, believes the Plan was
qualified and the related trust was tax-exempt as of December 31, 1994.
15
<PAGE> 22
SUPPLEMENTAL SCHEDULES
<PAGE> 23
THE KNOLL GROUP
RETIREMENT SAVINGS PLAN
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
<TABLE>
<CAPTION>
EIN: 36-2645676
December 31, 1994 Plan Number: 510
- ------------------------------------------------------------------------------------------------------------
Current
Description Cost Value
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks
MAS Equity Fund $ 3,070,497 $ 2,792,065
Vanguard Windsor II Equity Fund Inc. 9,038,693 8,748,199
Westinghouse Electric Corporation* 2,125,134 1,548,258
Bonds
Westinghouse Fixed Income Fund 25,941,268 26,389,137
MAS Special Purpose Fund 2,531,126 2,343,983
Miscellaneous
Wachovia Bank Diversified Trust Fund -
Short-Term Investment Fund 176,698 176,698
Participant loans, 8.0% - 11.5% 2,847,198 2,487,198
- ------------------------------------------------------------------------------------------------------------
$45,730,614 $44,485,538
============================================================================================================
</TABLE>
*Party-in-interest
17
<PAGE> 24
THE KNOLL GROUP
RETIREMENT SAVINGS PLAN
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
<TABLE>
<CAPTION>
EIN: 36-2645676
Year ended December 31, 1994 Plan Number: 510
- ------------------------------------------------------------------------------------------------------------
Current Value
of Asset on
Purchase Selling Cost Transaction Gain
Description of Asset Price Price of Asset Date (Loss)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Sales
Wachovia Bank Diversified
Trust Fund - Short-Term
Investment Fund $ - $4,983,943 $4,983,943 $4,983,943 $ -
Equitable Fixed Fund - 5,998,059 5,998,059 5,998,059 -
Purchases
Wachovia Bank Diversified
Trust Fund - Short-Term
Investment Fund 4,911,870 - 4,911,870 4,911,870 -
Westinghouse Fixed
Income Fund 7,639,025 - 7,639,025 7,639,025 -
MAS Equity Fund 1,586,055 - 1,586,055 1,586,055 -
Vanguard Windsor II
Equity Fund, Inc. 4,406,205 - 4,406,205 4,406,205 -
</TABLE>
18
<PAGE> 25
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan
Administrator has duly caused this annual report to be signed on behalf of the
Plan by the undersigned thereunto duly authorized.
The Knoll Group Retirement
Savings Plan
Dated: June 29, 1995 By: /S/ BARBARA E. ELLIXSON
_______________________
Name: Barbara E. Ellixson
Title: Plan Administrator
<PAGE> 26
EXHIBIT INDEX
<TABLE>
<CAPTION>
Sequential
Exhibit No. Description Page No.
<S> <C> <C>
23 Consent of Independent Accountants 27
</TABLE>
<PAGE> 1
EXHIBIT 23
Consent of Independent Accountants
----------------------------------
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (No. 33-46051) of our report dated June 26, 1995,
included in the Annual Report of The Knoll Group Retirement Savings Plan on
Form 11-K for the year ended December 31, 1994.
/s/ BDO Seidman
801 West Norton Avenue
Muskegon, Michigan
June 28, 1995
