<PAGE>
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
Annual Report Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
[ X ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 [NO FEE REQUIRED]
For the Fiscal Year Ended December 31, 1996
Or
[ ] TRANSITION REPORT, PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from ____________ to ________________
Commission file number 1-4654
A. Full title of Plan: WITCO CORPORATION EMPLOYEE RETIREMENT SAVINGS PLAN
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
WITCO CORPORATION
ONE AMERICAN LANE
GREENWICH, CONNECTICUT 06831-2559
<PAGE>
<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 26, 1997 By /s/ Camillo J. DiFrancesco
--------------------------------
Camillo J. DiFrancesco
Senior Vice President and Chief
Financial Officer of Witco
Corporation and Administrator of
the Witco Corporation Employee
Retirement Savings Plan
<PAGE>
<PAGE>
INDEX
<TABLE>
<CAPTION>
Financial Statements and Exhibits Page
- --------------------------------- ----
<S> <C>
Report of Independent Auditors....................................................................F-1
Financial Statements
Statements of Assets Available for Benefits, with Fund Information (Modified Cash Basis)
as of December 31, 1996 and 1995................................................................F-2
Statements of Changes in Assets Available for Benefits with Fund Information
(Modified Cash Basis) for the Years Ended December 31, 1996 and 1995..............................F-3
Notes to Financial Statements....................................................................F-10
Supplemental Schedules
Schedule of Assets Held for Investment Purposes..................................................F-14
Schedule of Reportable Transactions..............................................................F-15
</TABLE>
<PAGE>
<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
as of December 31, 1996 and 1995, 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, 1996 and 1995,
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, 1996 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 of
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.
/s/ ERNST & YOUNG LLP
June 16, 1997
F-1
<PAGE>
<PAGE>
Witco Corporation Employee Retirement Savings Plan
Statements of Assets Available for Benefits,
with Fund Information
(Modified Cash Basis)
<TABLE>
<CAPTION>
DECEMBER 31
1996 1995
----------------------------------
<S> <C> <C>
ASSETS
Investments:
Witco Common Stock Fund $ 13,803,144 $ 12,938,708
Mutual Funds (Notes 2 and 4):
Blended Income Fund 61,452,217 64,484,308
Fidelity Magellan Fund 24,055,442 22,752,970
Fidelity Asset Manager Fund 13,289,473 12,354,038
Fidelity International Growth and Income Fund 6,126,794 5,335,672
Fidelity Equity Income Fund 14,651,837 8,811,794
Fidelity Asset Manager: Growth Fund 5,132,138 3,855,765
Fidelity Growth Company Fund 11,027,280 6,081,371
Fidelity Asset Manager: Income Fund 1,640,756 1,819,903
Fidelity Institutional Short-Intermediate Government Fund 6,408,743 6,816,871
Participant Loans Receivable 3,593,922 3,354,218
----------------------------------
Assets available for benefits $161,181,746 $148,605,618
==================================
</TABLE>
See notes to financial statements.
F-2
<PAGE>
<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, 1996
<TABLE>
<CAPTION>
Witco Fidelity
Common Stock Blended Magellan
Fund Income Fund Fund
----------------------------------------------------------
<S> <C> <C> <C>
Additions to assets attributed to:
Investment income
Net appreciation (depreciation)
in fair value of investments $ 1,225,979 $ -- $ (1,166,830)
Interest -- 3,734,996 --
Dividends -- -- 3,817,873
----------------------------------------------------------
1,225,979 3,734,996 2,651,043
----------------------------------------------------------
Contributions
Participants 1,464,149 2,936,697 2,353,542
Employer 398,016 890,702 673,301
----------------------------------------------------------
1,862,165 3,827,399 3,026,843
----------------------------------------------------------
Loan repayments (interest and
principal) 194,053 557,619 274,529
----------------------------------------------------------
Total additions 3,282,197 8,120,014 5,952,415
----------------------------------------------------------
Deductions from assets attributed to:
Withdrawals (1,454,628) (8,198,276) (2,296,514)
Administrative expenses (2,286) (28,949) (11,914)
Loan withdrawals (212,854) (512,494) (373,043)
----------------------------------------------------------
Total deductions (1,669,768) (8,739,719) (2,681,471)
----------------------------------------------------------
Net increase (decrease) prior to
interfund transfers 1,612,429 (619,705) 3,270,944
Interfund transfers (747,993) (2,412,386) (1,968,472)
----------------------------------------------------------
Net increase (decrease) 864,436 (3,032,091) 1,302,472
Assets available for benefits at
beginning of year 12,938,708 64,484,308 22,752,970
----------------------------------------------------------
Assets available for benefits at end
of year $ 13,803,144 $ 61,452,217 $ 24,055,442
==========================================================
</TABLE>
See notes to financial statements.
F-3
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
Fidelity
Fidelity Fidelity Fidelity Asset Fidelity
Asset International Equity Manager: Growth
Manager Growth and Income Growth Company
Fund Income Fund Fund Fund Fund
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 521,198 $ 483,816 $ 1,421,367 $ 298,319 $ 880,732
- - - - -
1,048,583 200,185 846,230 429,641 471,495
----------------------------------------------------------------------------------
1,569,781 684,001 2,267,597 727,960 1,352,227
----------------------------------------------------------------------------------
1,265,916 656,747 973,971 378,219 861,675
381,534 188,670 261,603 105,736 225,989
----------------------------------------------------------------------------------
1,647,450 845,417 1,235,574 483,955 1,087,664
----------------------------------------------------------------------------------
149,165 76,243 133,235 41,907 80,419
----------------------------------------------------------------------------------
3,366,396 1,605,661 3,636,406 1,253,822 2,520,310
----------------------------------------------------------------------------------
(1,626,997) (577,806) (854,960) (337,705) (583,028)
(18,541) (508) (14,747) (2,415) (1,117)
(189,339) (72,424) (136,909) (49,933) (96,143)
----------------------------------------------------------------------------------
(1,834,877) (650,738) (1,006,616) (390,053) (680,288)
----------------------------------------------------------------------------------
1,531,519 954,923 2,629,790 863,769 1,840,022
(596,084) (163,801) 3,210,253 412,604 3,105,887
----------------------------------------------------------------------------------
935,435 791,122 5,840,043 1,276,373 4,945,909
12,354,038 5,335,672 8,811,794 3,855,765 6,081,371
----------------------------------------------------------------------------------
$13,289,473 $6,126,794 $14,651,837 $5,132,138 $11,027,280
==================================================================================
</TABLE>
F-4
<PAGE>
<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, 1996
<TABLE>
<CAPTION>
Fidelity
Institutional
Fidelity Asset Short-
Manager: Intermediate Participant
Income Government Loans
Fund Fund Receivable Total
---------------------------------------------------------------
<S> <C> <C> <C> <C>
Additions to assets attributed to:
Investment income
Net appreciation (depreciation) in
fair value of investments $ (231) $ (147,186) $ - $ 3,517,164
Interest - - - 3,734,996
Dividends 123,518 450,824 - 7,388,349
---------------------------------------------------------------
123,287 303,638 - 14,640,509
---------------------------------------------------------------
Contributions
Participants 90,855 739,590 - 11,721,361
Employer 22,247 221,186 - 3,368,984
---------------------------------------------------------------
113,102 960,776 - 15,090,345
---------------------------------------------------------------
Loan repayments (interest and
principal) 15,776 96,282 (1,266,710) 352,518
---------------------------------------------------------------
Total additions 252,165 1,360,696 (1,266,710) 30,083,372
---------------------------------------------------------------
Deductions from assets attributed to:
Withdrawals (246,344) (962,579) (285,687) (17,424,524)
Administrative expenses (2,223) (20) - (82,720)
Loan withdrawals (21,134) (127,828) 1,792,101 -
---------------------------------------------------------------
Total deductions (269,701) (1,090,427) 1,506,414 (17,507,244)
---------------------------------------------------------------
Net increase (decrease) prior to
interfund transfers (17,536) 270,269 239,704 12,576,128
Interfund transfers (161,611) (678,397) - -
---------------------------------------------------------------
Net increase (decrease) (179,147) (408,128) 239,704 12,576,128
Assets available for benefits at
beginning of year 1,819,903 6,816,871 3,354,218 148,605,618
---------------------------------------------------------------
Assets available for benefits at
end of year $1,640,756 $6,408,743 $3,593,922 $161,181,746
==============================================================
</TABLE>
F-5
See notes to financial statements.
<PAGE>
<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, 1995
<TABLE>
<CAPTION>
Group
Annuity
Contract:
New York Witco Fidelity
Life Ins. Co. Common Stock Blended Magellan
GA# 06022 Fund Income Fund Fund
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
Additions to assets attributed to:
Investment income
Net appreciation (depreciation)
in fair value of investments $ -- $ 2,461,902 $ -- $ 3,833,057
Interest -- -- 4,204,460 --
Dividends -- -- -- 1,290,511
-------------------------------------------------------------------
-- 2,461,902 4,204,460 5,123,568
-------------------------------------------------------------------
Contributions
Participants -- 1,771,835 3,320,227 2,220,699
Employer -- 565,342 1,185,414 695,597
-------------------------------------------------------------------
-- 2,337,177 4,505,641 2,916,296
-------------------------------------------------------------------
Loan repayments (interest and
principal) 12 207,371 484,956 304,211
Other -- 2,238 -- 10,143
-------------------------------------------------------------------
Total additions 12 5,008,688 9,195,057 8,354,218
-------------------------------------------------------------------
Deductions from assets attributed to:
Withdrawals (43,966) (1,148,693) (9,298,795) (1,388,027)
Administrative expenses -- (5,250) (187,455) (10,068)
Loan withdrawals -- (300,142) (884,839) (345,507)
Other (12) -- (107,023) --
-------------------------------------------------------------------
Total deductions (43,978) (1,454,085) (10,478,112) (1,743,602)
-------------------------------------------------------------------
Net increase (decrease) prior to
interfund transfers (43,966) 3,554,603 (1,283,055) 6,610,616
Interfund transfers (17,099,471) (853,937) 14,168,453 3,073,749
-------------------------------------------------------------------
Net increase (decrease) (17,143,437) 2,700,666 12,885,398 9,684,365
Assets available for benefits at
beginning of year 17,143,437 10,238,042 51,598,910 13,068,605
-------------------------------------------------------------------
Assets available for benefits at end
of year $ -- $ 12,938,708 $ 64,484,308 $ 22,752,970
===================================================================
</TABLE>
See notes to financial statements.
F-6
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
Fidelity Fidelity
Fidelity Short- Fidelity Fidelity Asset
Asset Intermediate International Equity Manager:
Manager Government Growth and Income Growth
Fund Fund Income Fund Fund Fund
-----------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,561,193 $ 242,739 $ 422,867 $1,263,284 $ 671,046
- - - - -
353,720 323,579 172,478 451,312 57,256
-----------------------------------------------------------------------
1,914,913 566,318 595,345 1,714,596 728,302
-----------------------------------------------------------------------
1,492,836 612,607 725,193 654,003 331,576
521,274 243,904 238,926 174,061 98,171
-----------------------------------------------------------------------
2,014,110 856,511 964,119 828,064 429,747
-----------------------------------------------------------------------
136,418 48,671 62,655 84,178 36,627
- - - - -
-----------------------------------------------------------------------
4,065,441 1,471,500 1,622,119 2,626,838 1,194,676
-----------------------------------------------------------------------
(806,978) (532,875) (504,775) (617,723) (385,188)
(11,177) (4,824) (1,210) (5,918) (2,230)
(160,251) (97,470) (63,682) (76,914) (67,222)
(1,846) (471) (1,476) (2,040) (941)
-----------------------------------------------------------------------
(980,252) (635,640) (571,143) (702,595) (455,581)
-----------------------------------------------------------------------
3,085,189 835,860 1,050,976 1,924,243 739,095
(1,387,123) (6,758,214) (767,805) 2,285,746 (1,241,883)
-----------------------------------------------------------------------
1,698,066 (5,922,354) 283,171 4,209,989 (502,788)
10,655,972 5,922,354 5,052,501 4,601,805 4,358,553
-----------------------------------------------------------------------
$12,354,038 $ - $5,335,672 $8,811,794 $ 3,855,765
============= ============= ============== ============= ==============
</TABLE>
F-7
<PAGE>
<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, 1995
<TABLE>
<CAPTION>
Fidelity
Institutional
Fidelity Fidelity Asset Short-
Growth Manager: Intermediate
Company Income Government
Fund Fund Fund
------------------------------------------------
<S> <C> <C> <C>
Additions to assets attributed to:
Investment income
Net appreciation (depreciation) in fair value of
investments $ 987,800 $ 167,333 $ 48,970
Interest - - 98,543
Dividends 271,278 76,697 59,620
------------------------------------------------
1,259,078 244,030 207,133
------------------------------------------------
Contributions
Participants 383,787 118,296 174,334
Employer 108,912 19,619 58,645
------------------------------------------------
492,699 137,915 232,979
------------------------------------------------
Loan repayments (interest and principal) 44,656 8,230 27,321
Other - - -
------------------------------------------------
Total additions 1,796,433 390,175 467,433
------------------------------------------------
Deductions from assets attributed to:
Withdrawals (409,846) (104,408) (126,840)
Administrative expenses (761) (1,497) (332)
Loan withdrawals (57,751) (8,721) (19,701)
Other - - -
------------------------------------------------
Total deductions (468,358) (114,626) (146,873)
------------------------------------------------
Net increase (decrease) prior to interfund transfers 1,328,075 275,549 320,560
Interfund transfers 2,027,752 56,422 6,496,311
------------------------------------------------
Net increase (decrease) 3,355,827 331,971 6,816,871
Assets available for benefits at beginning of year 2,725,544 1,487,932 -
------------------------------------------------
Assets available for benefits at end of year $6,081,371 $1,819,903 $6,816,871
================================================
</TABLE>
See notes to financial statements.
F-8
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
Participant
Loans
Receivable Total
- ----------------------------------
<S> <C>
$ - $ 11,660,191
- 4,303,003
- 3,056,451
- ----------------------------------
- 19,019,645
- ----------------------------------
- 11,805,393
- 3,909,865
- ----------------------------------
- 15,715,258
- ----------------------------------
(1,167,539) 277,767
40 12,421
- ----------------------------------
(1,167,499) 35,025,091
- ----------------------------------
(213,569) (15,581,683)
- (230,722)
2,082,200 -
- (113,809)
- ----------------------------------
1,868,631 (15,926,214)
- ----------------------------------
701,132 19,098,877
- -
- ----------------------------------
701,132 19,098,877
2,653,086 129,506,741
- ----------------------------------
$3,354,218 $148,605,618
==================================
</TABLE>
F-9
<PAGE>
<PAGE>
Witco Corporation Employee Retirement Savings Plan
Notes to Financial Statements
Years Ended December 31, 1996 and 1995
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. The Blended Income Fund is
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 cost of
investments sold.
USE OF ESTIMATES
The preparation of financial statements requires management to make estimates
and assumptions that affect the amounts reported in the financial statements.
Actual results could differ from those estimates.
2. DESCRIPTION OF THE PLAN
The Witco Corporation Employee Retirement Savings Plan ("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. Fidelity Investments is
the trustee and recordkeeper of the Plan.
An employee becomes eligible to participate in the Plan on the first day of the
month following 31 days of service. During the period from January 1, 1994 to
September 30, 1995, eligible employees could make a basic contribution under the
Plan in amounts up to 3% of their base salary with Witco making 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
salary 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. Effective October 1, 1995, the Company amended the Plan to change
the Company's matching contribution to 50% of the basic employee contributions
up to 6% of their base salary. In addition, employees may elect to make
voluntary contributions of 1% to 9% of their base salary. The respective
amendments do not impact certain bargaining employees as the terms of their
collective bargaining agreement has not changed.
F-10
<PAGE>
<PAGE>
Witco Corporation Employee Retirement Savings Plan
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
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. 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,
and a portion 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
foreign and domestic companies.
FIDELITY ASSET MANAGER FUND - 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 money market
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. These funds were
transferred into the Fidelity Institutional Short-Intermediate Government
Fund in 1995.
FIDELITY INTERNATIONAL GROWTH AND INCOME FUND - seeks capital growth and
current income, by investing in foreign and domestic equity and debt
securities as well as bonds.
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.
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.
F-11
<PAGE>
<PAGE>
Witco Corporation Employee Retirement Savings Plan
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
FIDELITY INSTITUTIONAL SHORT-INTERMEDIATE GOVERNMENT FUND - is an income
fund. It seeks a high level of current income consistent with preservation
of principal by investing exclusively in U.S. government 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.
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 Internal Revenue Service ruled that the Plan qualifies under Section 401(k)
of the Internal Revenue Code (IRC) and, therefore, the related trust is not
subject to tax under present income tax law. 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-12
<PAGE>
<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
1996 1995
------------------------------
<S> <C> <C>
Witco Common Stock Fund* $13,803,144 $12,938,708
Blended Income Fund:
Managed Income Portfolio Fund II 55,851,469 56,964,316
Fidelity Short Term Investment Fund 1,733,611 1,872,423
Confederation GIC #62545 at 8.42% through July 31, 1996 1,002,480 1,002,480
Protective Life GIC #GA582 at 8.6% through October 2, 1996 - 1,020,927
Penn Mutual GIC #GIC-91178 at 8.44% through October 2, 1996 - 959,171
Ohio National Life GIC #GA5359 at 8.47% through January 7, 1997 1,551,215 1,430,087
Ohio National Life GIC #GA5481 at 6.36% through April 30, 1997 656,721 617,452
Ohio National Life GIC #GA5482 at 6.36% through July 30, 1997 656,721 617,452
------------------------------
61,452,217 64,484,308
Fidelity Magellan Fund 24,055,442 22,752,970
Fidelity Asset Manager Fund 13,289,473 12,354,038
Fidelity Equity Income Fund 14,651,837 8,811,794
Fidelity Growth Company Fund 11,027,280 6,081,371
</TABLE>
*Party-in-interest investment
F-13
<PAGE>
<PAGE>
Supplemental Schedules
<PAGE>
<PAGE>
Witco Corporation Employee Retirement Savings Plan
Schedule of Assets Held for Investment Purposes
December 31, 1996
<TABLE>
<CAPTION>
SHARES,
UNITS OR
PRINCIPAL CURRENT
DESCRIPTION AMOUNT COST VALUE
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Witco Common Stock Fund* 1,296,070 $11,899,787 $13,803,144
Blended Income Fund:
Managed Income Portfolio Fund II 55,851,469 55,851,469 55,851,469
Fidelity Short Term Investment Fund 1,733,611 1,733,611 1,733,611
Confederation GIC #62545 at 8.42% through
July 31, 1996 1,002,480 1,002,480 1,002,480
Ohio National Life GIC #GA5359 at 8.47% through
January 7, 1997 1,551,215 1,551,215 1,551,215
Ohio National Life GIC #GA5481 at 6.36% through
April 30, 1997 656,721 656,721 656,721
Ohio National Life GIC #GA5482 at 6.36% through
July 30, 1997 656,721 656,721 656,721
---------------------------------------------
61,452,217 61,452,217 61,452,217
Fidelity Magellan Fund 298,270 22,561,528 24,055,442
Fidelity Asset Manager Fund 806,890 12,331,155 13,289,473
Fidelity International Growth and Income Fund 313,391 5,581,795 6,126,794
Fidelity Equity Income Fund 342,093 12,564,777 14,651,837
Fidelity Asset Manager: Growth Fund 313,892 4,600,447 5,132,138
Fidelity Growth Company Fund 272,548 9,595,341 11,027,280
Fidelity Asset Manager: Income Fund 141,323 1,556,918 1,640,756
Fidelity Institutional Short-Intermediate Government Fund 680,334 6,485,278 6,408,743
Participant Loans Receivable 3,593,922 3,593,922
</TABLE>
*Party-in-interest investment
F-14
<PAGE>
<PAGE>
Witco Corporation Employee Retirement Savings Plan
Schedule of Reportable Transactions
Year Ended December 31, 1996
Series of transactions during the year ended December 31, 1996, exceeding 5% of
the current value of Plan assets reportable per Department of Labor regulations
2520.103-6 are listed below. There were no category (i), (ii), or (iv)
reportable transactions during 1996.
<TABLE>
<CAPTION>
Number Aggregate Number Aggregate
of Value of of Value of Cost of
Description Purchase Purchases/ Sales Sales/ Sales/ Gain
Identity of Party Involved of Asset Transactions Deposits* Transactions Withdrawals* Withdrawals (Loss)
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CATEGORY (iii)--SERIES OF TRANSACTIONS IN EXCESS OF 5% OF PLAN ASSETS:
Blended Income Fund GIC Fund 176 $24,623,051 249 $27,611,454 $27,611,454 $ --
Witco Common Stock Fund Stock Fund 245 6,647,105 236 7,008,648 5,867,043 1,141,605
Fidelity Magellan Fund Mutual Fund 247 9,532,835 237 7,063,534 6,914,072 149,462
Fidelity Equity Income Fund Mutual Fund 235 6,847,262 161 2,428,586 2,174,925 253,661
Fidelity Growth Company Fund Mutual Fund 242 6,254,175 161 2,188,998 1,954,410 234,588
</TABLE>
* Current value at date of transaction.
F-15
<PAGE>
<PAGE>
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 16, 1997, 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,
1996.
/s/ ERNST & YOUNG LLP
Stamford, Connecticut
June 20, 1997
<PAGE>
