<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, 1997
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 their behalf by the
undersigned hereunto duly authorized.
WITCO CORPORATION EMPLOYEE RETIREMENT SAVINGS PLAN
Date: June 24, 1998 By /S/ Brian J. Dick
------------------------------------------
Brian J. Dick
Vice President and
Controller of
Witco Corporation
<PAGE>
<PAGE>
Financial Statements and Exhibits
Report of Independent Auditors..............................................F-1
Financial Statements
Statements of Assets Available for Benefits, with Fund Information
(Modified Cash Basis) as of December 31, 1997 and 1996....................F-2
Statements of Changes in Assets Available for Benefits, with Fund
Information (Modified Cash Basis) for the Years Ended December 31, 1997
and 1996..................................................................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
<PAGE>
<PAGE>
Report of Independent Auditors
Management Committee of 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, 1997 and 1996, 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, 1997 and 1996,
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 accompanying supplemental schedules
(modified cash basis) of assets held for investment purposes as of December 31,
1997 and reportable transactions for the year then ended are presented for
purposes of complying with the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974, and are not a required part of the basic financial statements. 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 benefits and
changes in assets available for benefits of each fund. The supplemental
schedules and Fund Information have been subjected to the auditing procedures
applied in our 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
Stamford, Connecticut
June 12, 1998
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
1997 1996
----------------------------
<S> <C> <C>
Assets
Investments:
Witco Common Stock Fund $ 18,245,434 $ 13,803,144
Managed Income Portfolio II 52,516,728 --
Blended Income Fund -- 61,452,217
Mutual Funds (Notes 2 and 4):
Fidelity Magellan Fund 29,181,410 24,055,442
Fidelity Asset Manager Fund 13,692,926 13,289,473
Fidelity International Growth and Income Fund 5,615,485 6,126,794
Fidelity Equity Income Fund 22,228,018 14,651,837
Fidelity Asset Manager: Growth Fund 6,810,220 5,132,138
Fidelity Growth Company Fund 12,394,428 11,027,280
Fidelity Asset Manager: Income Fund 1,629,018 1,640,756
Fidelity Institutional Short-Intermediate
Government Fund 5,636,394 6,408,743
Participant Loans Receivable 3,013,616 3,593,922
---------------------------
Assets available for benefits $170,963,677 $161,181,746
===========================
</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, 1997
<TABLE>
<CAPTION>
Witco Managed Fidelity
Common Blended Income Magellan
Stock Fund Income Fund Portfolio II Fund
-------------------------------------------------------------
<S> <C> <C> <C> <C>
Additions to assets attributed to:
Investment income
Net appreciation (depreciation)
in fair value of investments $ 4,657,944 $ -- $ -- $ 4,231,972
Interest -- 3,016,032 517,080 --
Dividends -- -- 19,193 1,874,822
-------------------------------------------------------------
4,657,944 3,016,032 536,273 6,106,794
-------------------------------------------------------------
Contributions
Participants 1,412,818 1,785,196 376,255 1,922,116
Employer 379,482 511,951 109,049 522,645
-------------------------------------------------------------
1,792,300 2,297,147 485,304 2,444,761
-------------------------------------------------------------
Loan repayments (interest and
principal) 229,191 434,479 74,541 273,120
-------------------------------------------------------------
Total additions 6,679,435 5,747,658 1,096,118 8,824,675
-------------------------------------------------------------
Deductions from assets attributed to:
Withdrawals (1,953,030) (10,936,077) (1,275,192) (4,472,061)
Administrative expenses (4,781) 44,340 (31,380) (5,192)
Loan withdrawals (220,554) (304,320) (58,823) (215,661)
-------------------------------------------------------------
Total deductions (2,178,365) (11,196,057) (1,365,395) (4,692,914)
-------------------------------------------------------------
Net increase (decrease) prior
to interfund transfers 4,501,070 (5,448,399) (269,277) 4,131,761
Interfund transfers (58,780) (56,003,818) 52,786,005 994,207
-------------------------------------------------------------
Net increase (decrease) 4,442,290 (61,452,217) 52,516,728 5,125,968
Assets available for
benefits at beginning of year 13,803,144 61,452,217 -- 24,055,442
-------------------------------------------------------------
Assets available for
benefits at end of year $ 18,245,434 $ -- $ 52,516,728 $ 29,181,410
=============================================================
</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>
$ 1,476,708 $ 89,767 $ 3,628,570 $ 656,907 $ 829,133
-- -- -- -- --
1,210,271 333,415 1,180,930 707,274 1,177,132
----------------------------------------------------------------------------
2,686,979 423,182 4,809,500 1,364,181 2,006,265
----------------------------------------------------------------------------
848,668 522,512 1,331,292 447,618 1,103,613
265,088 151,126 338,111 121,919 275,275
----------------------------------------------------------------------------
1,113,756 673,638 1,669,403 569,537 1,378,888
----------------------------------------------------------------------------
153,123 75,688 216,617 81,507 136,289
----------------------------------------------------------------------------
3,953,858 1,172,508 6,695,520 2,015,225 3,521,442
----------------------------------------------------------------------------
(2,958,851) (1,099,848) (2,602,461) (897,408) (1,648,611)
(5,261) (217) (5,953) (722) (531)
(146,815) (71,313) (151,228) (48,715) (93,278)
----------------------------------------------------------------------------
(3,110,927) (1,171,378) (2,759,642) (946,845) (1,742,420)
----------------------------------------------------------------------------
842,931 1,130 3,935,878 1,068,380 1,779,022
(439,478) (512,439) 3,640,303 609,702 (411,874)
----------------------------------------------------------------------------
403,453 (511,309) 7,576,181 1,678,082 1,367,148
13,289,473 6,126,794 14,651,837 5,132,138 11,027,280
----------------------------------------------------------------------------
$ 13,692,926 $ 5,615,485 $ 22,228,018 $ 6,810,220 $ 12,394,428
============================================================================
</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, 1997
<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 $ 76,792 $ (4,278) $ -- $ 15,643,515
Interest -- -- -- 3,533,112
Dividends 112,314 387,777 -- 7,003,128
----------------------------------------------------------------
189,106 383,499 -- 26,179,755
----------------------------------------------------------------
Contributions
Participants 85,974 415,212 -- 10,251,274
Employer 25,105 136,729 -- 2,836,480
----------------------------------------------------------------
111,079 551,941 -- 13,087,754
----------------------------------------------------------------
Loan repayments (interest and
principal) 13,596 74,962 (1,439,806) 323,307
----------------------------------------------------------------
Total additions 313,781 1,010,402 (1,439,806) 39,590,816
----------------------------------------------------------------
Deductions from assets attributed to:
Withdrawals (433,484) (999,208) (522,200) (29,798,431)
Administrative expenses (662) (95) -- (10,454)
Loan withdrawals (7,417) (63,576) 1,381,700 --
----------------------------------------------------------------
Total deductions (441,563) (1,062,879) 859,500 (29,808,885)
----------------------------------------------------------------
Net increase (decrease) prior
to interfund transfers (127,782) (52,477) (580,306) 9,781,931
Interfund transfers 116,044 (719,872) -- --
----------------------------------------------------------------
Net increase (decrease) (11,738) (772,349) (580,306) 9,781,931
Assets available for
benefits at beginning of year 1,640,756 6,408,743 3,593,922 161,181,746
----------------------------------------------------------------
Assets available for
benefits at end of year $ 1,629,018 $ 5,636,394 $ 3,013,616 $ 170,963,677
================================================================
</TABLE>
See notes to financial statements.
F-5
<PAGE>
<PAGE>
Page left blank intentionally
F-6
<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 Blended Magellan
Stock 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-7
<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-8
<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>
See notes to financial statements.
F-9
<PAGE>
<PAGE>
Witco Corporation Employee Retirement Savings Plan
Notes to Financial Statements
Years Ended December 31, 1997 and 1996
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 guaranteed investment
contracts within the Blended Income Fund 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 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. The Company's matching contribution is 50%
of the basic employee contributions up to 6% of their base salary except for
certain bargaining employees whose participation is based upon the terms of
their respective bargaining agreements. In addition, employees may elect to make
voluntary contributions of 1% to 9% of their base salary except for certain
bargaining employees who are limited based upon the terms of their respective
bargaining agreements.
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.
Witco Common Stock Fund - invests 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 stable value fund (Managed Income Portfolio II)
to provide liquidity. During 1997, the investment contracts matured and
these funds were transferred to various other funds and the Managed Income
Portfolio II was maintained as a separate investment option.
Managed Income Portfolio II - is a stable value fund. It seeks to provide
a competitive level of income over time while preserving the value of
investments by purchasing investment contracts issued by major insurance
companies and banks and short-term instruments.
Fidelity Magellan Fund - is a growth fund. It seeks long-term capital
appreciation by investing in the stocks of 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 stocks, bonds and short-term and money market
instruments.
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
moderate 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 and
money market 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 and money market
instruments.
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.
F-11
<PAGE>
<PAGE>
Witco Corporation Employee Retirement Savings Plan
Notes to Financial Statements (continued)
2. Description of the Plan (continued)
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 in excess of $3,500 may elect to defer receipt of such
amounts until the required distribution date. Effective April 1, 1998, this
limit was increased to $5,000.
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 Employee Benefits 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
1997 1996
--------------------------
<S> <C> <C>
Witco Common Stock Fund* $18,245,434 $13,803,144
Managed Income Portfolio II 52,516,728 --
Fidelity Magellan Fund 29,181,410 24,055,442
Fidelity Asset Manager Fund 13,692,926 13,289,473
Fidelity Equity Income Fund 22,228,018 14,651,837
Fidelity Growth Company Fund 12,394,428 11,027,280
Blended Income Fund:
Managed Income Portfolio II -- 55,851,469
Fidelity Short Term Investment Fund -- 1,733,611
Confederation GIC #62545 at 8.42% through July 31, 1996 -- 1,002,480
Ohio National Life GIC #GA5359 at 8.47% through January 7, 1997 -- 1,551,215
Ohio National Life GIC #GA5481 at 6.36% through April 30, 1997 -- 656,721
Ohio National Life GIC #GA5482 at 6.36% through July 30, 1997 -- 656,721
--------------------------
-- 61,452,217
</TABLE>
*Party-in-interest investment
5. Year 2000 Issue (Unaudited)
The Plan Sponsor is currently in the process of addressing date sensitive issues
associated with year 2000. The project also includes determining whether the
third party service provider has reasonable plans in place to become year 2000
compliant. The Plan Sponsor expects the project to be completed in mid-1999 and
does not expect this project to have a significant effect on plan operations.
F-13
<PAGE>
<PAGE>
Supplemental Schedules
F-14
<PAGE>
<PAGE>
Witco Corporation Employee Retirement Savings Plan
Schedule of Assets Held for Investment Purposes
December 31, 1997
<TABLE>
<CAPTION>
Shares,
Units Or
Principal Current
Description Amount Cost Value
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
Witco Common Stock Fund* 1,251,401 $13,358,583 $18,245,434
Managed Income Portfolio II 52,516,728 52,516,728 52,516,728
Fidelity Magellan Fund 306,302 24,519,355 29,181,410
Fidelity Asset Manager Fund 746,209 11,850,262 13,692,926
Fidelity International Growth and Income Fund 285,050 5,231,159 5,615,485
Fidelity Equity Income Fund 424,118 17,437,789 22,228,018
Fidelity Asset Manager: Growth Fund 368,518 5,860,646 6,810,220
Fidelity Growth Company Fund 286,113 10,792,627 12,394,428
Fidelity Asset Manager: Income Fund 133,745 1,523,896 1,629,018
Fidelity Institutional Short-Intermediate
Government Fund 598,343 5,686,795 5,636,394
Participant Loans Receivable 3,013,616 3,013,616
</TABLE>
*Party-in-interest investment
F-15
<PAGE>
<PAGE>
Witco Corporation Employee Retirement Savings Plan
Schedule of Reportable Transactions
Year Ended December 31, 1997
Series of transactions during the year ended December 31, 1997, 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 1997.
<TABLE>
<CAPTION>
Number Aggregate Number Aggregate
of Value of of Value of Cost of
Description Purchase Purchases/ Sales Sales/ Sales/
Identity of Party Involved of Asset Transactions Deposits* Transactions Withdrawals Withdrawals Gain
*
- -----------------------------------------------------------------------------------------------------------------------------------
Category (iii)--Series of transactions in excess of 5% of plan assets:
<S> <C> <C> <C> <C> <C> <C> <C>
Witco Corporation Witco Common Stock Fund 247 $12,145,016 226 $12,360,671 $10,686,220 $ 1,674,450
Fidelity Investments Blended Income Fund 217 19,452,576 212 80,904,793 80,904,793 --
Fidelity Investments Managed Income Portfolio II 39 55,220,062 36 2,703,334 2,703,334 --
Fidelity Investments Magellan Fund 245 9,166,967 231 8,272,972 7,209,140 1,063,831
Fidelity Investments Equity Income Fund 237 9,650,458 195 5,702,848 4,777,446 925,401
Fidelity Investments Growth Company Fund 240 5,512,480 207 4,974,465 4,315,194 659,270
</TABLE>
* Current value at date of transaction.
F-16
<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 12, 1998, 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,
1997.
/s/ ERNST & YOUNG LLP
Stamford, Connecticut
June 19, 1998
