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 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the Fiscal Year Ended December 31, 1994
[_] TRANSITION REPORT, PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
Commission file number 1-4654
Full title of Plan: WITCO CORPORATION EMPLOYEE RETIREMENT SAVINGS PLAN
Name of issuer of the securities held pursuant to the plan
and the address of its principal office:
WITCO CORPORATION
ONE AMERICAN LANE
GREENWICH, CONNECTICUT 06831-2559
<PAGE>
SIGNATURE
The Plan. Pursuant to the requirements of the Securities Exchange Act of
1934, the administrators of the Witco Corporation Employee Retirement Savings
Plan have duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
WITCO CORPORATION EMPLOYEE RETIREMENT SAVINGS PLAN
Date: June 27, 1995 By /s/ Michael D. Fullwood
--------------------------------------------
Michael D. Fullwood
Executive Vice President and Chief Financial
Officer of Witco Corporation and
Administrator of the Witco Corporation
Employee Retirement Savings Plan
<PAGE>
INDEX
Financial Statements and Exhibits Page
- --------------------------------- ----
Report of Independent Auditors .......................................... F-1
Financial Statements
Statements of Assets Available for Benefits
(Modified Cash Basis) as of December 31, 1994 and 1993 ................ F-2
Statements of Changes in Assets Available for Benefits
(Modified Cash Basis) for the Years Ended December 31, 1994 and 1993 .. F-3
Notes to Financial Statements ........................................... F-8
Supplemental Schedules
Schedule of Assets Held for Investment Purposes ......................... F-13
Schedule of Reportable Transactions ..................................... F-14
<PAGE>
Report of Independent Auditors
Management Committee of Witco Corporation
Witco Corporation
We have audited the accompanying statements of assets available for benefits
(modified cash basis) of the Witco Corporation Employee Retirement Savings Plan
(formerly the Witco Corporation Thrift Savings Plan) as of December 31, 1994 and
1993, and the related statements of changes in assets available for benefits
(modified cash basis) 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. These 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.
As described in Note 1, the financial statements and supplemental schedules were
prepared on a modified cash basis of accounting, which is a comprehensive basis
of accounting other than generally accepted accounting principles.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the assets available for benefits of the Witco
Corporation Employee Retirement Savings Plan as of December 31, 1994 and 1993,
and the changes in assets available for benefits for the years then ended, on
the basis of accounting described in Note 1.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules (modified cash
basis) of assets held for investment purposes as of December 31, 1994 and
reportable transactions for the year then ended 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 for
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. The Fund Information in the statement of
assets available for benefits and the statement of changes in assets available
for benefits is presented for purposes of additional analysis rather than to
present the assets available for plan benefits and changes in assets available
for plan benefits of each fund. The supplemental schedules and Fund Information
have been subjected to the auditing procedures applied in the audits 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.
ERNST & YOUNG LLP
June 26, 1995
F-1
<PAGE>
Witco Corporation Employee Retirement Savings Plan
Statements of Assets Available for Benefits,
with Fund Information
(Modified Cash Basis)
December 31
1994 1993
---------------------------
Assets:
Group annuity contract (Notes 1 and 4):
NY Life Ins. Co. GA# 06022 .................... $ 17,143,437 $ 18,921,884
Witco Stock Fund
(Units - 303,714 at a cost of $6,334,534) ...... -- 9,680,884
Witco Common Stock Fund
(Units - 1,273,388 at a cost of $10,242,814) .. 10,238,042 --
Mutual Funds:
Blended Income Fund (Notes 1 and 4):
(Units - 51,598,910 at a cost of $51,598,910) . 51,598,910 --
Fidelity Magellan Fund
(Units - 195,638 at a cost of $13,651,325) .... 13,068,605 --
Fidelity Asset Manager
(Units - 770,497 at a cost of $11,529,698) .... 10,655,972 --
Fidelity Short-Intermediate Government Fund
(Units - 647,960 at a cost of $6,266,499) ..... 5,922,354 --
Fidelity International Growth and Income Fund
(Units - 305,656 at a cost of $5,341,046) ..... 5,052,501 --
Fidelity Equity Income Fund
(Units - 149,896 at a cost of $4,878,362) ..... 4,601,805 --
Fidelity Asset Manager: Growth Fund
(Units - 339,451 at a cost of $4,639,765) ..... 4,358,553 --
Fidelity Growth Company Fund
(Units - 99,983 at a cost of $2,813,792) ...... 2,725,544 --
Fidelity Asset Manager: Income Fund
(Units - 142,796 at a cost of $1,538,479) ..... 1,487,932 --
Guaranteed Investment Fund Trust
(Units - 15,536,930 at a cost of $15,536,930) . -- 15,536,930
Dreyfus Liquid Assets, Inc.
(Units - 11,756,262 at a cost of $11,756,262) . -- 11,756,262
Dreyfus Fund, Inc.
(Units - 688,936 at a cost of $9,074,353) ..... -- 9,025,056
Dreyfus Growth Opportunity Fund, Inc.
(Units - 563,852 at a cost of $6,940,640) ..... -- 6,055,774
Dreyfus Short-Intermediate Government Fund, Inc.
(Units - 531,908 at a cost of $6,142,248) ..... -- 6,047,793
Dreyfus Global Investing Fund, Inc.
(Units - 211,650 at a cost of $3,017,887) ..... -- 3,394,870
Overnight Contract ............................... -- 17,580,530
Loans Receivable ................................. 2,653,086 --
----------------------------
Assets available for benefits .................... $129,506,741 $ 97,999,983
============================
See notes to financial statements.
F-2
<PAGE>
Witco Corporation Employee Retirement Savings Plan
Statement of Changes in Assets Available for Benefits,
with Fund Information
(Modified Cash Basis)
Year Ended December 31, 1994
<TABLE>
<CAPTION>
Group Group
Annuity Annuity
Contract: Contracts
New York (Including Witco Witco
Life Ins. Co. Overnight Stock Common
GA# 06022 Contract) Fund Stock Fund
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Additions to assets attributed to:
Investment income
Gains (losses) on investments
Unrealized $ -- $ -- $ -- $ (3,246,733)
Realized -- -- 33,354 925,164
Interest 1,460,748 4,270 -- 75,309
Dividends -- -- -- --
------------------------------------------------------------------------
1,460,748 4,270 33,354 (2,246,260)
------------------------------------------------------------------------
Contributions
Participants -- -- -- 1,704,729
Employer -- -- -- 678,831
------------------------------------------------------------------------
-- -- -- 2,383,560
------------------------------------------------------------------------
Transfer from predecessor plan -- -- -- --
Loan repayments (interest and principal) 184 -- -- 118,215
Other 19,572 -- 4,222 324
------------------------------------------------------------------------
Total additions 1,480,504 4,270 37,576 255,839
------------------------------------------------------------------------
Deductions from assets attributed to:
Withdrawals (1,649,158) (970,671) (157,171) (707,917)
Administrative expenses (8,996) -- -- (3,759)
Loan withdrawals (297,137) -- -- (323,180)
Other -- (4,226) -- --
------------------------------------------------------------------------
Total deductions (1,955,291) (974,897) (157,171) (1,034,856)
------------------------------------------------------------------------
Net increase (decrease) prior to interfund
transfers (474,787) (970,627) (119,595) (779,017)
Interfund transfers 17,618,224 (35,531,787) (9,561,289) 11,017,059
------------------------------------------------------------------------
Net increase (decrease) 17,143,437 (36,502,414) (9,680,884) 10,238,042
Assets available for benefits at beginning of
year -- 36,502,414 9,680,884 --
------------------------------------------------------------------------
Assets available for benefits at end
of year $ 17,143,437 $ -- $ -- $ 10,238,042
========================================================================
</TABLE>
See notes to financial statements.
F-3
<PAGE>
Witco Corporation Employee Retirement Savings Plan
Statement of Changes in Assets Available for Benefits,
with Fund Information
(Modified Cash Basis) (continued)
Year Ended December 31, 1994
<TABLE>
<CAPTION>
Fidelity Fidelity Fidelity
Short- International Fidelity Asset
Blended Fidelity Fidelity Intermediate Growth and Equity Manager:
Income Magellan Asset Government Income Income Growth
Fund Fund Manager Fund Fund Fund Fund
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to assets attributed to:
Investment income
Gains (losses) on investments
Unrealized $ -- $ (582,720) $ (873,726) $ (344,145) $ (288,545) $ (276,557) $ (281,212)
Realized -- (74,645) (201,242) (131,575) (20,613) (66,296) (540)
Interest 3,022,529 -- -- -- -- -- --
Dividends -- 462,197 403,654 371,534 155,119 378,566 117,762
---------------------------------------------------------------------------------------------------
3,022,529 (195,168) (671,314) (104,186) (154,039) 35,713 (163,990)
---------------------------------------------------------------------------------------------------
Contributions
Participants 3,302,445 1,628,587 1,712,351 903,426 758,235 273,482 229,770
Employer 1,493,850 669,535 708,757 400,926 309,136 105,008 70,043
---------------------------------------------------------------------------------------------------
4,796,295 2,298,122 2,421,108 1,304,352 1,067,371 378,490 299,813
---------------------------------------------------------------------------------------------------
Transfer from predecessor plan 25,227,374 -- -- 794,938 -- 2,891,030 --
Loan repayments (interest and
principal) 252,303 123,241 59,495 30,827 31,053 54,192 28,913
Other -- -- -- 8,811 45 -- --
---------------------------------------------------------------------------------------------------
Total additions 33,298,501 2,226,195 1,809,289 2,034,742 944,430 3,359,425 164,736
---------------------------------------------------------------------------------------------------
Deductions from assets attributed to:
Withdrawals (6,345,775) (631,664) (937,043) (535,460) (237,878) (238,196) (180,188)
Administrative expenses (176,417) (5,053) (5,711) (3,670) (1,330) (1,511) (1,462)
Loan withdrawals (921,379) (291,315) (217,206) (106,583) (159,144) (81,728) (89,091)
Other (63,803) (6,601) (70) -- -- (24,903) (44)
---------------------------------------------------------------------------------------------------
Total deductions (7,507,374) (934,633) (1,160,030) (645,713) (398,352) (346,338) (270,785)
---------------------------------------------------------------------------------------------------
Net increase (decrease) prior
to interfund transfers 25,791,127 1,291,562 649,259 1,389,029 546,078 3,013,087 (106,049)
Interfund transfers 25,807,783 11,777,043 10,006,713 4,533,325 4,506,423 1,588,718 4,464,602
---------------------------------------------------------------------------------------------------
Net increase (decrease) 51,598,910 13,068,605 10,655,972 5,922,354 5,052,501 4,601,805 4,358,553
Assets available for benefits
at beginning of year -- -- -- -- -- -- --
---------------------------------------------------------------------------------------------------
Assets available for benefits
at end of year $ 51,598,910 $ 13,068,605 $ 10,655,972 $ 5,922,354 $ 5,052,501 $ 4,601,805 $ 4,358,553
===================================================================================================
</TABLE>
F-4
<PAGE>
Witco Corporation Employee Retirement Savings Plan
Statement of Changes in Assets Available for Benefits,
with Fund Information
(Modified Cash Basis) (continued)
Year Ended December 31, 1994
<TABLE>
<CAPTION>
Fidelity Fidelity Asset
Growth Manager: Guaranteed Dreyfus
Company Income Investment Liquid
Fund Fund Fund Trust Assets, Inc.
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Additions to assets attributed to:
Investment income
Gains (losses) on investments
Unrealized $ (88,249) $ (50,547) $ -- $ --
Realized (3,109) (2,186) -- --
Interest -- -- -- --
Dividends 98,736 59,918 4,389 --
------------------------------------------------------------------------
7,378 7,185 4,389 --
------------------------------------------------------------------------
Contributions
Participants 123,530 32,985 -- --
Employer 44,496 12,045 -- --
------------------------------------------------------------------------
168,026 45,030 -- --
------------------------------------------------------------------------
Transfer from predecessor plan -- -- -- --
Loan repayments (interest and
principal) 9,926 5,226 -- --
Other -- -- -- --
------------------------------------------------------------------------
Total additions 185,330 57,441 4,389 --
------------------------------------------------------------------------
Deductions from assets attributed to:
Withdrawals (123,702) (201,331) (359,528) (432,453)
Administrative expenses (357) (565) -- --
Loan withdrawals (63,337) (10,700) -- --
Other (68) -- (9,821) (46,022)
------------------------------------------------------------------------
Total deductions (187,464) (212,596) (369,349) (478,475)
------------------------------------------------------------------------
Net increase (decrease) prior to
interfund transfers (2,134) (155,155) (364,960) (478,475)
Interfund transfers 2,727,678 1,643,087 (15,171,970) (11,277,787)
------------------------------------------------------------------------
Net increase (decrease) 2,725,544 1,487,932 (15,536,930) (11,756,262)
Assets available for benefits at
beginning of year -- -- 15,536,930 11,756,262
------------------------------------------------------------------------
Assets available for benefits at end of
year $ 2,725,544 $ 1,487,932 $ -- $ --
========================================================================
</TABLE>
See notes to financial statements.
F-5
<PAGE>
Witco Corporation Employee Retirement Savings Plan
Statement of Changes in Assets Available for Benefits,
with Fund Information
(Modified Cash Basis) (continued)
Year Ended December 31, 1994
<TABLE>
<CAPTION>
Dreyfus Dreyfus
Dreyfus Short- Global
Growth Intermediate Investing
Dreyfus Opportunity Government Fund, Loans to
Fund, Inc. Fund, Inc. Fund, Inc. Inc. Participants Total
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions to assets attributed to:
Investment income
Gains (losses) on investments
Unrealized $ 49,297 $ 884,865 $ 94,454 $ (376,983) $ -- $ (5,380,801)
Realized (49,297) (884,865) (94,454) 376,983 -- (193,321)
Interest -- -- -- -- -- 4,562,856
Dividends -- -- -- -- -- 2,051,875
--------------------------------------------------------------------------------------
-- -- -- -- -- 1,040,609
--------------------------------------------------------------------------------------
Contributions
Participants -- -- -- -- -- 10,669,540
Employer -- -- -- -- -- 4,492,627
--------------------------------------------------------------------------------------
-- -- -- -- -- 15,162,167
--------------------------------------------------------------------------------------
Transfer from predecessor plan -- -- -- -- 737,632 29,650,974
Loan repayments (interest and
principal) -- -- -- -- (584,904) 128,671
Other -- -- -- -- -- 32,974
--------------------------------------------------------------------------------------
Total additions -- -- -- -- 152,728 46,015,395
--------------------------------------------------------------------------------------
Deductions from assets attributed to:
Withdrawals (152,053) (73,245) (87,242) (53,178) (60,442) (14,134,295)
Administrative expenses -- -- -- -- -- (208,831)
Loan withdrawals -- -- -- -- 2,560,800 --
Other (1,748) (3,232) (4,052) (921) -- (165,511)
--------------------------------------------------------------------------------------
Total deductions (153,801) (76,477) (91,294) (54,099) 2,500,358 (14,508,637)
--------------------------------------------------------------------------------------
Net increase (decrease) prior to
interfund transfers (153,801) (76,477) (91,294) (54,099) 2,653,086 31,506,758
Interfund transfers (8,871,255) (5,979,297) (5,956,499) (3,340,771) -- --
--------------------------------------------------------------------------------------
Net increase (decrease) (9,025,056) (6,055,774) (6,047,793) (3,394,870) 2,653,086 31,506,758
Assets available for benefits at
beginning of year 9,025,056 6,055,774 6,047,793 3,394,870 -- 97,999,983
--------------------------------------------------------------------------------------
Assets available for benefits at
end of year $ -- $ -- $ -- $ -- $ 2,653,086 $ 129,506,741
======================================================================================
</TABLE>
F-6
<PAGE>
Witco Corporation Employee Retirement Savings Plan
Statement of Changes in Assets Available for Benefits, with Fund Information
(Modified Cash Basis)
Year Ended December 31, 1993
<TABLE>
<CAPTION>
Group Annuity Dreyfus
Contracts Short- Dreyfus
(Including Witco Dreyfus Intermediate Growth
Overnight Stock Liquid Assets, Government Dreyfus Opportunity
Contract) Fund Inc. Fund, Inc. Fund, Inc. Fund, Inc.
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions to assets attributed to:
Investment income
Gains (losses) on investments
Unrealized $ -- $ 1,862,011 $ 147 $ (63,260) $ (110,007) $ (992,503)
Realized -- 59,979 -- 30,621 424,109 1,161,537
Interest 3,036,540 -- -- -- -- --
Dividends -- 250,428 280,126 348,786 195,258 --
--------------------------------------------------------------------------------------
3,036,540 2,172,418 280,273 316,147 509,360 169,034
--------------------------------------------------------------------------------------
Contributions
Participants -- 1,369,222 1,805,412 1,053,601 1,884,516 1,344,853
Employer, net of forfeitures of $126,879 -- 553,091 865,502 455,891 795,562 573,935
--------------------------------------------------------------------------------------
-- 1,922,313 2,670,914 1,509,492 2,680,078 1,918,788
--------------------------------------------------------------------------------------
Total additions 3,036,540 4,094,731 2,951,187 1,825,639 3,189,438 2,087,822
--------------------------------------------------------------------------------------
Deductions from assets attributed to:
Withdrawals (3,682,662) (502,846) (1,925,440) (309,464) (452,814) (203,517)
Administrative expenses (98,174) (10,931) (38,597) (6,681) (9,539) (6,382)
Other -- 113,628 (162,939) 21,728 26,524 24,011
--------------------------------------------------------------------------------------
Total deductions (3,780,836) (400,149) (2,126,976) (294,417) (435,829) (185,888)
--------------------------------------------------------------------------------------
Net increase (decrease) prior to
interfund transfers (744,296) 3,694,582 824,211 1,531,222 2,753,609 1,901,934
Interfund transfers (26,691) (174,261) (24,342,557) 2,901,354 3,581,817 2,142,822
--------------------------------------------------------------------------------------
Net increase (decrease) (770,987) 3,520,321 (23,518,346) 4,432,576 6,335,426 4,044,756
Assets available for benefits at
beginning of year 37,273,401 6,160,563 35,274,608 1,615,217 2,689,630 2,011,018
--------------------------------------------------------------------------------------
Assets available for benefits at end of
year $ 36,502,414 $ 9,680,884 $ 11,756,262 $ 6,047,793 $ 9,025,056 $ 6,055,774
======================================================================================
</TABLE>
<TABLE>
<CAPTION>
Dreyfus
Global Guaranteed
Investing Investment
Fund, Inc. Fund Trust Total
-----------------------------------------
<S> <C> <C> <C>
Additions to assets attributed to:
Investment income
Gains (losses) on investments
Unrealized $ 378,240 $ -- $ 1,074,628
Realized 128,853 -- 1,805,099
Interest -- -- 3,036,540
Dividends 14,392 744,868 1,833,858
-----------------------------------------
521,485 744,868 7,750,125
-----------------------------------------
Contributions
Participants 619,752 1,026,739 9,104,095
Employer, net of forfeitures of $126,879 262,260 476,351 3,982,592
-----------------------------------------
882,012 1,503,090 13,086,687
-----------------------------------------
Total additions 1,403,497 2,247,958 20,836,812
-----------------------------------------
Deductions from assets attributed to:
Withdrawals (101,508) (1,091,432) (8,269,683)
Administrative expenses (2,611) (16,182) (189,097)
Other 10,428 26,204 59,584
-----------------------------------------
Total deductions (93,691) (1,081,410) (8,399,196)
-----------------------------------------
Net increase (decrease) prior to
interfund transfers 1,309,806 1,166,548 12,437,616
Interfund transfers 1,547,134 14,370,382 --
-----------------------------------------
Net increase (decrease) 2,856,940 15,536,930 12,437,616
Assets available for benefits at
beginning of year 537,930 -- 85,562,367
-----------------------------------------
Assets available for benefits at end of
year $ 3,394,870 $ 15,536,930 $ 97,999,983
=========================================
</TABLE>
See notes to financial statements.
F-7
<PAGE>
Witco Corporation Employee Retirement Savings Plan
Notes to Financial Statements
Years Ended December 31, 1994 and 1993
1. Significant Accounting Policies
Accounting Basis
The accompanying financial statements have been prepared on a modified basis of
cash receipts and disbursements; consequently, contributions, interest income
and the related assets are recognized when received rather than when earned, and
certain expenses are recognized when paid rather than when the obligation is
incurred. Accordingly, the accompanying financial statements are presented on a
comprehensive basis of accounting other than generally accepted accounting
principles.
Investment Valuation
Investments are stated at fair or contract value. Group annuity contracts and
fully benefit responsive guaranteed investment contracts are valued at contract
value. Contract value represents contributions made under the contract, plus
interest at the contract rate less withdrawals. Fair value of the other
investments is determined by quoted market prices on an active market or
redemption values, which approximates market value.
Gains/(Losses)
The change in the difference between the fair value and the cost of investments
is reflected as unrealized gains/(losses) in the aggregate fair value of
investments. Realized gains and losses on the disposal of investments are
calculated as the difference between the proceeds received and the average cost
of investments sold.
2. Description of the Plan
The Witco Corporation Employee Retirement Savings Plan ("Plan") (formerly the
Witco Corporation Thrift Savings Plan) is a defined contribution plan
established for the purpose of encouraging and assisting eligible employees of
Witco Corporation and subsidiary companies ("Witco" or "Company") in following a
systematic savings program. Effective January 1, 1994, the Company amended the
Plan to incorporate changes in investment options, administrative procedures,
and provision enhancements. The investment options, trustee and record keeping
responsibilities of the Plan were transferred to Fidelity Investments. The Plan
provision enhancements include an employee loan provision, the removal of
certain restrictions on withdrawals of employee and company matched funds, the
allowance of daily transactions for all of the funds, adoption of the
unitization for the Witco Common Stock Fund and certain administrative changes
resulting from the conversion to Fidelity Investments.
An employee becomes eligible to participate in the Plan on the first day of the
month following 31 days of service. Eligible employees may make a basic
contribution under the Plan in amounts equal to 1%, 2% or 3% of their base pay.
Witco makes monthly contributions in an amount equal to 100% of these basic
employee contributions except for certain bargaining employees whose
participation is based upon terms of their respective collective bargaining
agreement. In addition, employees may elect to make voluntary supplemental
contributions of 1% to 12% of their base pay except for certain bargaining
employees who are limited to 7%. Witco does not make contributions with respect
to any portion of the voluntary supplemental contributions.
F-8
<PAGE>
Witco Corporation Employee Retirement Savings Plan
Notes to Financial Statements (continued)
2. Description of the Plan (continued)
Effective December 31, 1993, the Sherex Chemical Company, Inc. Employee Thrift
Plan ("Sherex") was merged into the Plan. The assets of the Sherex plan totaling
$29,650,974 were transferred to Fidelity Investments and invested in similar
funds managed by Fidelity Investments in early 1994. The Sherex participants
became subject to the provisions of the Plan as of the effective date for all
future contributions. Certain provisions have been "grandfathered" for
investments prior to the merge date.
The Plan permits pre-tax and after-tax contributions by participants. Certain
bargaining employees are excluded from making after-tax contributions.
Participants may direct the pre-tax contributions and after tax contributions,
including Company matching contributions, to be invested in one or more of ten
funds, excluding the Group Annuity Contract. The ten funds include a Witco
Common Stock Fund, and various diversified bond and equity funds as described
below.
Group Annuity Contract: New York Life Insurance Company - represents an
investment in the New York Life Insurance Company Group Annuity Contract,
which matured January 3, 1995. These funds were transferred to the Blended
Income Fund on January 4, 1995.
Witco Common Stock Fund - are investments primarily in Witco company stock,
a portion of which was transferred from the former Witco Stock Fund with
the remaining amount invested in money market instruments for liquidity.
Blended Income Fund - seeks to preserve capital and provide a competitive
level of income over time. It purchases high-quality short- and long-term
investment contracts issued by insurance companies (GICs) and banks (BICs),
"synthetics" and a short-term money market position to provide liquidity.
Fidelity Magellan Fund - is a growth fund. It seeks long-term capital
appreciation by investing in the stocks of both well-known and lesser known
companies.
Fidelity Asset Manager - is an asset allocation fund. It seeks high total
return with reduced risk over the long-term by allocating its assets among
domestic and foreign equities, bonds and short-term instruments.
Fidelity Short-Intermediate Government Fund - is an income fund. It seeks
as high a level of current income as is consistent with preservation of
principal by investing in U.S. government securities.
Fidelity International Growth and Income Fund - seeks capital growth and
current income, by investing principally in foreign equity securities.
Fidelity Equity Income Fund - is a growth and income fund. It seeks
reasonable income with the potential for capital appreciation. The Fund
tries to achieve a yield that exceeds the composite yield of the S&P 500.
Fidelity Asset Manager: Growth Fund - is an asset allocation fund. It seeks
to maximize total return over the long-term by allocating its assets among
and across domestic and foreign stocks, bonds, and short-term instruments.
F-9
<PAGE>
Witco Corporation Employee Retirement Savings Plan
Notes to Financial Statements (continued)
2. Description of the Plan (continued)
Fidelity Growth Company Fund - is a growth fund. It seeks long-term capital
appreciation by investing primarily in common stocks and securities
convertible into common stocks.
Fidelity Asset Manager: Income Fund - is an asset allocation fund. It seeks
a high level of current income by allocating its assets among domestic and
foreign stocks, bonds, and short-term instruments.
Prior to transferring participant accounts to Fidelity, the Plan permitted
contributions in the following funds:
Group Annuity Contracts -- After-tax contributions were invested in group
annuity contracts in which payments of principal and interest at a fixed
rate are guaranteed by the issuer of each investment contract for a
specified period. For group annuity contracts expiring after January 1,
1993, the participants were allowed to transfer their investment to any of
the other funds available. Effective January 1, 1993, a Guaranteed
Investment Fund Trust (GIFT) replaced the expired group annuity contracts
as an investment option for both pre-tax and after-tax contributions. On
December 31, 1993, the Metropolitan Life Group Annuity Contract totaling
$17,580,530 expired and the assets were temporarily held in an overnight
contract until they could be allocated to the participant's choice of funds
on January 3, 1994.
Witco Stock Fund -- Contributions are invested solely in Witco Corporation
Common Stock.
Guaranteed Investment Fund Trust (GIFT) -- is a collective investment fund
with a primary objective of high current income and stability of principal.
The fund invests primarily in guaranteed investment contracts. The trustee
and portfolio manager of the GIFT is LaSalle National Trust.
Dreyfus Liquid Assets, Inc. -- is a diversified open-end money market
mutual fund managed by Dreyfus. The fund's objective is to provide as high
a level of current income as is consistent with the preservation of
capital. The fund invests in money market instruments including U.S.
Government securities, time deposits, certificates of deposit, banker's
acceptances and other short-term corporate obligations.
Dreyfus Fund, Inc. -- is a diversified, open-end mutual fund with a primary
objective of long term capital appreciation consistent with preservation of
capital. The fund invests primarily in common stocks.
Dreyfus Growth Opportunity Fund, Inc. -- is a diversified open-end mutual
fund that seeks long-term capital growth by investing principally in common
stocks of domestic issuers and securities of foreign companies and
governments.
Dreyfus Short-Intermediate Government Fund, Inc. -- is a fund that offers
as high a level of income as is consistent with the preservation of
capital. The fund invests in a portfolio of securities issued or guaranteed
by the U.S. Government, its agencies or instrumentalities, and repurchase
agreements relating to them.
F-10
<PAGE>
Witco Corporation Employee Retirement Savings Plan
Notes to Financial Statements (continued)
2. Description of the Plan (continued)
Dreyfus Global Investing Fund, Inc. -- is an open-end, nondiversified
mutual fund whose goal is capital growth. The fund invests primarily in
publicly traded common stocks of foreign and domestic issuers as well as
convertible securities, preferred stocks and debt securities.
Participants are immediately vested in contributions made by them and become
fully vested in the contributions made by Witco after they have completed three
consecutive years of participation in the Plan or five years of service to
Witco. All former Sherex participants are immediately vested in contributions
made by Witco. Participants who have been terminated for reasons beyond their
own control become fully vested in Witco's contributions upon their termination.
Non-vested contributions by Witco which have been forfeited by participants are
applied to reduce future contributions by Witco. Terminated participants whose
account balance is at least $3,500 may elect to defer receipt of such amounts
until the required distribution date.
Employees participating in the Plan will not be subject to federal income tax on
amounts contributed to the Plan by Witco and earnings allocated to their
accounts until such time that their participating interest in the Plan is
distributed to them. The Plan provides that participants may elect to have their
pre-tax contributions subject to certain limitations, excluded from taxable
income pursuant to Section 401(k) of the Internal Revenue Code.
Employees are permitted to make hardship withdrawals if certain criteria are
met. Only one hardship withdrawal a year is permitted.
The Plan was amended in 1994 to allow for a loan provision. Employees may borrow
up to the lesser of $50,000 or 50% of their vested account balance at an
interest rate of 1% above prime. Loan repayments are made automatically through
payroll deductions.
Witco, by action of its Board of Directors, may suspend the operation of the
Plan for any year by omitting all or part of the employer contributions. In
addition, Witco may terminate or amend the Plan for any reason, at any time,
provided that no such termination or amendment shall permit any of the funds
established pursuant to this Plan to be used for any purpose other than the
exclusive benefit of the participating employees. Upon termination of the Plan,
the rights of members to the benefits accrued under the Plan to the date of
termination shall be nonforfeitable.
3. Income Tax Status
The Company has applied for an updated determination letter from the Internal
Revenue Service stating that the amendment of the Plan incorporates new
provisions and complies with current tax regulations meeting the requirements of
a qualified plan as defined by the Internal Revenue Code (IRC) and, therefore,
the related trust is not subject to income tax. Once qualified, the Plan is
required to operate in conformity with the IRC to maintain its qualification.
The Management Committee of Witco Corporation is not aware of any course of
action or series of events that have occurred that might adversely affect the
Plan's qualified status.
F-11
<PAGE>
Witco Corporation Employee Retirement Savings Plan
Notes to Financial Statements (continued)
4. Investments
The fair value of individual investments that represent 5% or more of the Plan's
net assets are as follows:
<TABLE>
<CAPTION>
December 31
-----------------------------------
1994 1993
<S> <C> <C>
Blended Income Fund:
Fidelity IPL $38,230,612 $ --
Fidelity Short Term Investment Fund 1,451,997 --
Northwestern National Life GIC #GA-21661-5 at 9.05% through
March 31, 1995 1,415,100 --
Northwestern National Life GIC #GA-21646-1 at 8.95% through
July 31, 1995 2,575,484 --
Confederation GIC #62545 at 8.42% through July 31, 1996 1,035,068 --
Protective Life GIC #GA582 at 8.6% through October 2, 1996 1,531,419 --
Penn Mutual GIC #GIC-91178 at 8.44% through October 2, 1996 1,324,877 --
Ohio National Life GIC #GA5359 at 8.47% through January 7, 1997 1,318,416 --
Ohio National Life GIC #GA5481 at 6.36% through April 30, 1997 580,530 --
Ohio National Life GIC #GA5482 at 6.36% through July 30, 1997 580,530 --
Reliance Insurance Fund Reliance Standard Life GIC #270745 at
8.95% through September 9, 1999 1,554,877 --
-----------
51,598,910
Group Annuity Contract: New York Life Insurance Co.
Contract #06022 at 8.83% through January 3, 1995 17,143,437 18,921,884
Fidelity Magellan Fund 13,068,605 --
Fidelity Asset Manager 10,655,972 --
Witco Common Stock Fund* 10,238,042 --
Metropolitan Life Insurance Co.
Overnight Contract at 3% through January 3, 1994 -- 17,580,530
Guaranteed Investment Fund Trust -- 15,536,930
Dreyfus Liquid Assets, Inc. -- 11,756,262
Dreyfus Fund, Inc. -- 9,025,056
Dreyfus Growth Opportunity Fund, Inc. -- 6,055,774
Dre yfus Short-Intermediate Government Fund, Inc. -- 6,047,793
Witco Stock Fund* -- 9,680,884
</TABLE>
*Party-in-interest investment
5. Other
In January 1994, the Plan distributed approximately $2,500,000 to participants
who withdrew funds or terminated from the Plan at December 31, 1993.
F-12
<PAGE>
Supplemental Schedules
<PAGE>
Witco Corporation Employee Retirement Savings Plan
Schedule of Assets Held for Investment Purposes
December 31, 1994
<TABLE>
<CAPTION>
Shares,
Units Or
Principal Current
Description Amount Cost Value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Blended Income Fund:
Fidelity IPL 38,230,612 $38,230,612 $38,230,612
Fidelity Short Term Investment Fund 1,451,997 1,451,997 1,451,997
Northwestern National Life GIC #GA-21661-5 at
9.05% through March 31, 1995 1,415,100 1,415,100 1,415,100
Northwestern National Life GIC #GA-21646-1 at
8.95% through July 31, 1995 2,575,484 2,575,484 2,575,484
Confederation GIC #62545 at 8.42% through
July 31, 1996 1,035,068 1,035,068 1,035,068
Protective Life GIC #GA582 at 8.6% through
October 2, 1996 1,531,419 1,531,419 1,531,419
Penn Mutual GIC #GIC-91178 at 8.44% through
October 2, 1996 1,324,877 1,324,877 1,324,877
Ohio National Life GIC #GA5359 at 8.47%
through January 7, 1997 1,318,416 1,318,416 1,318,416
Ohio National Life GIC #GA5481 at 6.36%
through April 30, 1997 580,530 580,530 580,530
Ohio National Life GIC #GA5482 at 6.36%
through July 30, 1997 580,530 580,530 580,530
Reliance Insurance Fund Reliance Standard Life
GIC #270745 at 8.95% through September 9, 1999 1,554,877 1,554,877 1,554,877
------------------------------------------------------
51,598,910 51,598,910 51,598,910
Group Annuity Contract: New York Life Ins. Co.
Contract #06022 at 8.83% through January 3, 1995 17,143,437 17,143,437 17,143,437
Fidelity Magellan Fund 195,638 13,651,325 13,068,605
Fidelity Asset Manager 770,497 11,529,698 10,655,972
Witco Common Stock Fund* 1,273,388 10,242,814 10,238,042
Fidelity Short-Intermediate Government Fund 647,960 6,266,499 5,922,354
Fidelity International Growth and Income Fund 305,656 5,341,046 5,052,501
Fidelity Equity Income Fund 149,896 4,878,362 4,601,805
Fidelity Asset Manager: Growth Fund 339,451 4,639,765 4,358,553
Fidelit y Growth Company Fund 99,983 2,813,792 2,725,544
Fidelity Asset Manager: Income Fund 142,796 1,538,479 1,487,932
</TABLE>
*Party-in-interest investment
F-13
<PAGE>
Witco Corporation Employee Retirement Savings Plan
Schedule Of Reportable Transactions
Year Ended December 31, 1994
Transactions or series of transactions during the year ended December 31, 1994,
exceeding 5% of the current value of Plan assets reportable per Department of
Labor regulations 2520.103-6 are listed below. A series of transactions may
include single transactions that are in excess of 5% of the current value of
Plan assets reportable per Department of Labor regulations. There were no
category (ii) or (iv) reportable transactions during 1994.
<TABLE>
<CAPTION>
Number Aggregate Number Aggregate
of Value of of Value of Cost of
Purchase Purchases/ Sales Sales/ Sales/ Gain
Identity of Party Involved Description of Asset Transactions Deposits* Transactions Withdrawals* Withdrawals (Loss)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Category (i)--Individual transaction
in excess of 5% of plan assets:
Metropolitan Life
Insurance Company Overnight Investment Contract -- -- 1 $17,580,530 $17,580,530 $--
Guaranteed Investment
Fund Trust Mutual Fund -- -- 1 15,171,970 15,171,970 --
Blended Income Fund GIC Fund -- -- 1 18,164,208 18,164,208 --
Fidelity Magellan Fund Mutual Fund 1 $6,199,735 -- -- -- --
Fidelity Short-Intermediate
Government Fund Mutual Fund -- -- 1 5,956,499 5,956,499 --
Dreyfus Fund, Inc. Mutual Fund -- -- 1 8,871,255 8,871,255 --
Dreyfus Liquid Assets, Inc. Money Market -- -- 1 11,174,183 11,174,183 --
Dreyfus Growth Opportunity
Fund, Inc. Mutual Fund -- -- 1 5,979,297 5,979,297 --
</TABLE>
*Current value at date of transaction.
F-14
<PAGE>
Witco Corporation Employee Retirement Savings Plan
Schedule Of Reportable Transactions
Year Ended December 31, 1994
Transactions or series of transactions during the year ended December 31, 1994,
exceeding 5% of the current value of Plan assets reportable per Department of
Labor regulations 2520.103-6 are listed below. A series of transactions may
include single transactions that are in excess of 5% of the current value of
Plan assets reportable per Department of Labor regulations.
<TABLE>
<CAPTION>
Number Aggregate Number Aggregate
of Value of of Value of Cost of
Purchase Purchases/ Sales Sales/ Sales/ Gain
Identity of Party Involved Description of Asset Transactions Deposits* Transactions Withdrawals* Withdrawals (Loss)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Category (iii)--Series of transaction
in excess of 5% of plan assets:
Blended Income Fund GIC Fund 201 $11,494,248 195 $28,299,178 $28,299,178 $ --
Witco Common Stock Fund Stock Fund 194 12,745,664 170 3,428,014 2,502,850 925,164
Fidelity Magellan Fund Mutual Fund 189 16,539,583 174 2,813,613 2,888,258 (74,645)
Fidelity Equity Income Fund Mutual Fund 154 6,568,017 100 1,623,360 1,689,656 (66,296)
Fidelity International
Growth and Income Fund Mutual Fund 169 6,931,341 142 1,569,682 1,590,295 (20,613)
Fidelity Asset Manager Mutual Fund 192 16,184,637 177 4,453,696 4,654,938 (201,242)
Fidelity Asset Manager:
Growth Fund Mutual Fund 144 5,233,270 94 592,964 593,504 (540)
Fidelity Short-Intermediate
Government Fund Mutual Fund 172 10,177,706 155 3,779,632 3,911,207 (131,575)
Dreyfus Liquid Assets, Inc. Money Market 25 24,234 7 11,629,358 11,629,358 --
Guaranteed Investment Fund Trust Mutual Fund 1 4,389 6 15,541,319 15,541,319 --
Dreyfus Short-Intermediate
Government Fund Mutual Fund -- -- 4 6,047,793 6,047,793 --
Dreyfus Fund, Inc. Mutual Fund -- -- 4 9,025,056 9,025,056 --
Dreyfus Growth Opportunity
Fund, Inc. Mutual Fund -- -- 4 6,055,774 6,055,774 --
</TABLE>
* Current value at date of transaction.
F-15
Exhibit 23
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement (Form
S-8, No. 33-48806) pertaining to the Witco Corporation Employee Retirement
Savings Plan of our report dated June 26, 1995, with respect to the financial
statements and schedules of the Witco Corporation Employee Retirement Savings
Plan included in this Annual Report (Form 11-K) for the year ended December 31,
1994.
ERNST & YOUNG LLP
Stamford, Connecticut
June 26, 1995
