FORM 11-K
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
X Annual Report Pursuant to Section 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]
For the Transition Period From ___________ To __________
Commission File Number 1-5502
ZURN/NEPCO RETIREMENT SAVINGS PLAN
(Full title of the Plan)
ZURN INDUSTRIES, INC.
One Zurn Place, Erie, Pennsylvania 16505
(Name and address of issuer of securities held pursuant to the Plan)
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Pension Committee
Zurn Industries, Inc.
Erie, Pennsylvania
We have audited the accompanying statements of net assets available for
benefits of the Zurn/NEPCO Retirement Savings Plan as of December 31, 1994 and
1993, and the related statements of changes in net assets available for
benefits for the years then ended. These financial statements are the
responsibility of the Plan's administrator. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by the administrator, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Zurn/NEPCO
Retirement Savings Plan as of December 31, 1994 and 1993, and the changes in
its net assets available for benefits for the years then ended in conformity
with generally accepted accounting principles.
Our audits were made for the purpose of expressing an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
held for investment purposes at December 31, 1994, and loans or fixed income
obligations 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 supplemental schedules have been
subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
/s/ Pashke Twargowski & Lee
Erie, Pennsylvania
October 11, 1995
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STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
ZURN/NEPCO RETIREMENT SAVINGS PLAN
December 31
1994 1993
ASSETS
Investments in T. Rowe Price Funds:
U.S. Treasury Money $ 960,357 $ 906,824
U.S. Treasury Intermediate 14,646
New Income 219,579 256,413
Balanced 77,858
Capital Appreciation 1,757,743 1,424,286
Equity Index 1,226,294 1,126,505
International Stock 360,970
OTC 55,369
4,672,816 3,714,028
Participants' loans 221,555 117,626
Contributions receivable:
Participants' 38,184 57,742
Employers' 10,470 17,068
TOTAL ASSETS 4,943,025 3,906,464
FORFEITED EMPLOYERS' CONTRIBUTIONS 23,562 27,865
NET ASSETS AVAILABLE FOR BENEFITS $4,919,463 $3,878,599
See notes to financial statements.
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<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
ZURN/NEPCO RETIREMENT SAVINGS PLAN
Year Ended December 31, 1994
<CAPTION>
T. Rowe Price Funds
U.S. Treasury New Capital
Money Intermediate Income Balanced Appreciation
<S> <C> <C> <C> <C> <C>
ADDITIONS
Investment income (loss):
Dividends $ 32,619 $ 587 $ 16,328 $ 3,750 $ 139,112
Net (depreciation) in
value of investments (700) (21,794) (4,164) (80,215)
32,619 (113) (5,466) (414) 58,897
Contributions:
Participants' 228,335 2,486 98,460 15,795 414,694
Employers' 68,708 877 26,818 3,955 106,452
Participants' loan interest 2,147 391 233 3,725
TOTAL ADDITIONS 331,808 3,250 120,203 19,569 583,768
DEDUCTIONS
Benefits paid to participants 155,576 85 29,041 415 172,703
Forfeited employers' contributions 9,993 6,185 171 22,776
TOTAL DEDUCTIONS 165,569 85 35,226 586 195,479
NET ADDITIONS 166,239 3,165 84,977 18,983 388,289
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 906,824 256,413 1,424,286
Transfers (112,707) 11,481 (121,811) 58,875 (54,832)
End of year $ 960,357 $ 14,646 $ 219,579 $ 77,858 $1,757,743
See notes to financial statements.
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<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS - Continued
ZURN/NEPCO RETIREMENT SAVINGS PLAN
Year Ended December 31, 1994
<CAPTION>
T. Rowe Price Funds
Equity International
Index Stock OTC Other Total
<S> <C> <C> <C> <C> <C>
ADDITIONS
Investment income (loss):
Dividends $ 45,759 $ 22,134 $ 5,716 $ 266,005
Net (depreciation) in
value of investments (33,620) (32,242) (5,426) (178,161)
12,139 (10,108) 290 87,844
Contributions:
Participants' 306,932 131,710 15,218 $ (19,558) 1,194,072
Employers' 78,827 28,297 4,138 1,768 319,840
Participants' loan interest 2,962 468 109 10,035
TOTAL ADDITIONS 400,860 150,367 19,755 (17,790) 1,611,791
DEDUCTIONS
Benefits paid to participants 125,159 13,566 219 11,216 507,980
Forfeited employers' contributions 16,414 3,290 55 4,063 62,947
TOTAL DEDUCTIONS 141,573 16,856 274 15,279 570,927
NET ADDITIONS (DEDUCTIONS) 259,287 133,511 19,481 (33,069) 1,040,864
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 1,126,505 164,571 3,878,599
Transfers (159,498) 227,459 35,888 115,145
End of year $1,226,294 $ 360,970 $ 55,369 $ 246,647 $4,919,463
See notes to financial statements.
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/TABLE
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
ZURN/NEPCO RETIREMENT SAVINGS PLAN
Year Ended December 31, 1993
<CAPTION>
T. Rowe Price Funds
U.S. Treasury New Capital
Money Income Appreciation
<S> <C> <C> <C>
ADDITIONS
Investment income:
Dividends $ 19,276 $ 9,610 $ 54,732
Net appreciation (depreciation)
in value of investments (900) 102,774
19,276 8,710 157,506
Contributions:
Participants' 329,838 105,059 476,166
Employers' 99,380 24,166 119,756
Participants' loan interest 1,633 82 1,973
TOTAL ADDITIONS 450,127 138,017 755,401
DEDUCTIONS
Benefits paid to participants 81,663 5,159 68,395
Forfeited employers' contributions (16,272) 811 7,919
TOTAL DEDUCTIONS 65,391 5,970 76,314
NET ADDITIONS 384,736 132,047 679,087
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 616,154 54,523 751,845
Transfers (94,066) 69,843 (6,646)
End of year $ 906,824 $ 256,413 $1,424,286
See notes to financial statements.
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/TABLE
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS - Continued
ZURN/NEPCO RETIREMENT SAVINGS PLAN
Year Ended December 31, 1993
<CAPTION>
T. Rowe
Price Fund
Equity
Index Other Total
<S> <C> <C> <C>
ADDITIONS
Investment income:
Dividends $ 23,988 $ 107,606
Net appreciation in
value of investments 59,931 161,805
83,919 269,411
Contributions:
Participants' 340,675 $ 10,202 1,261,940
Employers' 94,551 6,113 343,966
Participants' loan interest 2,735 6,423
TOTAL ADDITIONS 521,880 16,315 1,881,740
DEDUCTIONS
Benefits paid to participants 99,461 7,771 262,449
Forfeited employers' contributions 7,542 29,769 29,769
TOTAL DEDUCTIONS 107,003 37,540 292,218
NET ADDITIONS (DEDUCTIONS) 414,877 (21,225) 1,589,522
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 726,397 140,158 2,289,077
Transfers (14,769) 45,638
End of year $1,126,505 $ 164,571 $3,878,599
See notes to financial statements.
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NOTES TO FINANCIAL STATEMENTS
ZURN/NEPCO RETIREMENT SAVINGS PLAN
December 31, 1994
PLAN DESCRIPTION
The Zurn/NEPCO Retirement Savings Plan is a defined contribution plan
providing retirement benefits through participant-directed investments to
participants in the National Energy Production Corporation Pension Plan. It
is subject to the provisions of the Employee Retirement Income Security Act of
1974 (ERISA).
The Company has agreed to contribute participants' elective deferrals of up to
18% of eligible compensation plus one-half of such amounts up to 2% of
eligible compensation. Participants also may contribute non-taxed
distributions from other employers' qualified plans and they may borrow from
their accounts subject to specified limitations.
Information about the Plan agreement and the benefit provisions is contained
in the "Summary Plan Description" which may be obtained from Zurn Industries,
Inc., the Plan Administrator.
SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price Investments The investments are stated at market value as
determined by the funds.
Investment Transactions Investment transactions are recorded as of the date
the order to buy or sell is executed with realized gains and losses being
included in investment income as a component of the net appreciation
(depreciation) in the value of investments.
Participants' Loans Participants' loans are stated at the principal amount
due from the participants.
Dividends Dividend income is recognized on the ex-dividend date.
Expenses Administrative expenses are paid by the Plan Administrator.
INCOME TAX STATUS
The Internal Revenue Service has ruled that the Plan qualifies under Section
401(a) of the Internal Revenue Code and is, therefore, not subject to tax
under present income tax law. Once qualified, the Plan is required to operate
in conformity with the Code to maintain its qualification. The Plan
Administrator is not aware of any course of action or series of events that
might adversely affect the Plan's qualified status.
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SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
ZURN/NEPCO RETIREMENT SAVINGS PLAN
December 31, 1994
ASSETS OWNED AT YEAR-END
Cost Current Value
T. Rowe Price Funds:
U.S. Treasury Money $ 960,357 $ 960,357
U.S. Treasury Intermediate 15,343 14,646
New Income 235,478 219,579
Balanced 81,812 77,858
Capital Appreciation 1,771,691 1,757,743
Equity Index 1,181,544 1,226,294
International Stock 393,681 360,970
OTC 60,798 55,369
Participants' loans - 7% to 9.5% interest -0- 221,555
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SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
ZURN/NEPCO RETIREMENT SAVINGS PLAN
Year Ended December 31, 1994
Amount Received
Original During The Year Unpaid Amount Overdue
Amount Principal Interest Balance Principal Interest
John R. Bunch $1,422 $91 $9 $1,331 $1,331 $-0-
1059 Military Turnpike Participant loan - 7%
Plattsburgh, NY 12901 Distributed to participant
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Pension Committee of Zurn Industries, Inc. has duly caused this
annual report to be signed on its behalf by the undersigned thereunto duly
authorized.
ZURN/NEPCO RETIREMENT SAVINGS PLAN
(Plan)
February 7, 1996 /s/ James A. Zurn
James A. Zurn, Chairman
Pension Committee of
Zurn Industries, Inc.
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CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement on
Form S-8 pertaining to the Zurn/NEPCO Retirement Savings Plan of our report
dated October 11, 1995 with respect to the financial statements and
supplemental schedules included in the Annual Report on Form 11-K of the
Zurn/NEPCO Retirement Savings Plan.
/s/ Pashke Twargowski & Lee
Erie, Pennsylvania
February 7, 1996
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