SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
Annual Report Pursuant to Section 13 or 15(d) of The
X Securities Exchange Act of 1934 (Fee Required)
--------
For the fiscal year ended January 1, 1995
Transition Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934 (No Fee Required)
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For the transition period from _____ to _____
Commission File Number 1-6832
BIC CORPORATION
(Exact name of registrant as specified in its charter)
New York 06-0735597
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
500 BIC Drive, Milford, Connecticut 06460
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (203) 783-2000
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Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange
Title of each class on which registered
----------------------- -------------------------
Common shares, New York Stock Exchange
$1.00 par value
Securities registered pursuant to Section 12(g) of the Act:
None
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes X No
----------- -----------
Indicate by check mark if disclosure of delinquent filers pursuant
to Item 405 of Regulation S-K is not contained herein, and will
not be contained, to the best of registrant's knowledge in definitive
proxy or information statements incorporated by reference in Part III
of this Form 10-K or any amendment to this Form 10-K X .
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At February 22, 1995, there were 23,559,244 common shares of the
registrant outstanding, and the aggregate market value of the common
shares held by non-affiliates of the registrant was $166,939,192.
Documents Incorporated by Reference:
Registrant incorporates by reference in Part III of this Annual Report
the definitive proxy statement to be issued in connection with the 1995
Annual Meeting of Shareholders.
<PAGE>
BIC CORPORATION AND SUBSIDIARIES
--------------------------------
PART I
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Item 1 - Business
-----------------
The term "Corporation" refers to BIC Corporation, a New York
corporation which was incorporated in 1958, and its subsidiaries,
unless the context indicates otherwise.
The Corporation's primary focus is the manufacture and sale of
high-quality, low-cost consumer products. These products include
stationery products, lighters and shavers. The Corporation also
distributes sailboards which are purchased from a foreign
affiliate. While most of the Corporation's operations are
conducted in the United States, operations are also conducted at
other locations in North and Central America. Societe BIC, S.A.
is the Corporation's majority shareholder.
The following table sets forth the net sales and income (loss)
before income taxes and cumulative effect of changes in
accounting principles for each of the Corporation's principal
products for the periods indicated:
(In millions) 1994 1993 1992
------------- ---- ---- ----
Net Sales
---------
Stationery Products $256.8 $233.3 $216.2
Lighters 108.9 102.3 101.0
Shavers 105.4 98.6 94.6
Sport 4.0 5.1 5.6
------ ------ ------
$475.1 $439.3 $417.4
====== ====== ======
Income (Loss) Before Income Taxes and
Cumulative Effect of Changes in
Accounting Principles
-------------------------------------
Stationery Products $ 46.9 $ 37.2 $ 34.4
Lighters 11.4 11.4 8.5
Shavers 29.8 23.8 24.2
Sport (0.9) 1.6 .2
------ ------ ------
$ 87.2 $ 74.0 $ 67.3
====== ====== ======
Products
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The principal products of the Corporation are as follows:
Stationery Products
-------------------
The Corporation is the largest manufacturer and distributor of
ball pen writing instruments in North America. These pens, which
are marketed under trademarks owned by the Corporation, are
available in both nonretractable, nonrefillable models and
retractable, refillable models. The pens are available in
various ink and barrel colors and point sizes. In addition to
ball pens, the Corporation manufactures highlighting markers,
roller pens and correction fluids and distributes mechanical
pencils. Based on market research studies and other public
information, the number of ball pens sold by the Corporation in
1994 represents approximately 40% of the office products market
in the United States. In the over-the-counter market, the
Corporation holds the number one position in ball pens, roller
pens and mechanical pencils.
<PAGE>
Stationery Products (Continued)
-------------------------------
In 1992, the Corporation acquired Wite-Out Products, Inc., the
second largest manufacturer of correction fluid in the United
States. During the fourth quarter of 1993, the Corporation
introduced four performance-based correction fluids formulated to
meet the specific needs of individual consumers: For Everything(R)
Quick Dry, For Everything Extra Coverage, For Everything Super
Smooth and Water Base. This line contains no chemicals known to
deplete the ozone layer. The new Wite-Out line was
enthusiastically received by the trade in 1994 and will continue
to be supported with special consumer and trade promotions during
1995.
During 1994, the Corporation successfully increased its sales
and distribution of Soft Feel(R) pens. In the fourth quarter of
1994, the Corporation introduced two new Soft Feel pens, Soft
Feel Clear and Soft Feel Fashion; and a new Citation(R) pen, a
retractable, refillable pen with chrome trim. In BIC
Wavelengths(R), a line of fashion pens and mechanical pencils
featuring a variety of colorful designs, images and ink colors,
several new designs were introduced. These designs include Play
Sports(TM), pens with sports illustrations; Polar Blast(TM),
retractable pens with frosty-clear barrels and Old World(TM),
retractable pens with classic Old World map drawings.
Lighters
--------
The Corporation is the leading manufacturer and distributor of
disposable lighters in North America. Based on market research
studies and other public information, BIC lighters continue to
maintain their market leadership position despite the importation
of low-quality, inexpensive lighters from the Far East.
During 1992, the Corporation introduced to the market its BIC
Lighter with Child Guard(R). This model, now in its second
version, makes it even more difficult for children to light and
exceeds the United States Consumer Product Safety Commission
standard that went into effect on July 12, 1994.
During the second quarter of 1994, the Corporation introduced
its latest design in its Limited Edition series, BIC Limited
Edition Psychedelics. Like its predecessors (Marbles, Sports,
Country Western, etc.), the Psychedelics line is designed to
appeal to adult consumers' interest in unique and distinctive new
lighter designs.
Shavers
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The Corporation continues to share the number one position in
the one-piece shaver market, which consists of over 1.2 billion
units annually. One-piece shavers, the only type sold by the
Corporation, account for well over 50% of the total wet-shave
market. These statistics are based on market research studies
and other public information.
During 1994, the Corporation continued to expand sales and
distribution of its line of BIC twin blade shavers which features
precise twin blade orientation for different skin types, a
slimmer shaver head, a long, tapered handle and a reusable guard.
Sport
-----
The principal sport product distributed by the Corporation is
the BIC Sailboard. These sailboards are purchased from a foreign
affiliate.
<PAGE>
Sales/Marketing
---------------
The Corporation's principal products are sold through the
Corporation's sales force and manufacturer representative groups
to approximately 18,000 accounts, which include food, drug,
wholesale club, superstore, variety and retail outlets, as well
as tobacco, drug and stationery wholesalers, who in turn
distribute the products to retail outlets. Sales to commercial
customers are generated both by the Corporation's own sales force
and by selected manufacturer representative groups who sell to
office supply distributors and retailers. Stationery products,
lighters and shavers carrying the purchaser's name, trademark,
corporate symbol or other imprint are sold to customers for
advertising specialty or premium purposes by the Corporation's
Special Markets Division.
The Corporation relies upon advertising on national television
networks, in national publications with broad circulation and in
publications for specialized audiences. The Corporation also
maintains a cooperative advertising program pursuant to which it
shares the cost of certain advertising with retailers. In
addition, the Corporation provides a wide variety of product
displays, sales promotion materials and other advertising and
merchandising aids to retail outlets.
During 1994, BIC launched the first multiproduct television
campaign in the Corporation's history. The campaign theme, "BIC.
Worth Every Penny."(TM) collectively supports stationery products,
lighters and shavers. This campaign features six BIC products:
the BIC Classic Stic(R) pen, the BIC Wavelength(R) pen, BIC Lighter,
BIC Shaver, BIC Twin Select(R) Normal Skin Shaver and BIC Twin
Pastel(R) Shaver.
International Operations
------------------------
The Corporation's international operations consist of the
operations of its subsidiaries in Canada, Mexico, Guatemala and
Puerto Rico. Sales by foreign subsidiaries were approximately
15% of consolidated net sales in 1994 and 1993, and 16% in 1992.
International operations are subject to certain risks,
including changes in currency exchange rates and imposition of
foreign exchange controls. During 1994, the Corporation's
Mexican subsidiary recorded a $9.5 million foreign currency
translation loss as a separate component of shareholders' equity.
This loss resulted from a devaluation of the Mexican peso of
approximately 37%, as compared to the U.S. dollar in 1994.
Competition
-----------
Although the Corporation is the leading domestic manufacturer
of ball pen writing instruments and disposable lighters, it is
subject to intense competition in all areas of its business.
Competitors include both smaller specialized firms and larger
diversified companies, some of which have broader product lines
and substantially greater financial resources than the
Corporation. The Corporation's major competitor in stationery
products is Gillette Company. Major competitors in lighters are
Scripto Tokai Corporation, Swedish Match Corporation and
importers of low-quality, inexpensive lighters from the Far East.
In shavers, major competitors are Gillette Company and the Schick
Division of Warner Lambert Company.
Trademarks
----------
The Corporation owns a number of trademarks relating to its
products which are the subject of intensive advertising and
marketing programs. The principal registered trademarks, which
the Corporation believes are important to its business, are BIC, (Logo of
BIC), "Flick My BIC", (Logo of BIC Wavelength) and (Logo of BIC
Wite-Out).
<PAGE>
Employee Relations
------------------
At January 1, 1995, the Corporation had approximately 2,600
employees, of whom approximately 560 were unionized personnel at
the Corporation's facility in Milford, Connecticut. These
unionized personnel are represented under a collective bargaining
agreement which expires on November 29, 1997. The Corporation
considers its employee relations to be good.
Item 2 - Properties
-------------------
At January 25, 1995, the Corporation owned and operated
manufacturing plants in the United States, Mexico, Canada and
Guatemala. Manufacturing areas, including related office and
service areas of the Corporation, are as follows:
Square
Feet
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Milford, Connecticut 800,000
Fountain Inn, South Carolina 157,000
Duncan, South Carolina 144,000
Gaffney, South Carolina 113,000
Clearwater, Florida 89,000
Cuautitlan, Mexico 151,000
Toronto, Ontario, Canada 81,000
Guatemala City, Guatemala 15,000
The Corporation leases sales offices and warehouse space at
various other locations and owns or leases such machinery and
equipment as is necessary for the operation of its business. In
general, the machinery and plants are in good condition,
adequately meet the Corporation's needs and operate at reasonable
levels of production capacity.
Item 3 - Legal Proceedings
--------------------------
The Corporation has significant contingent liabilities with
respect to pending litigation, claims and disputes, principally
relating to its lighters, which arise in the ordinary course of
its business.
BIC has been named a Potentially Responsible Party at a
superfund site. Refer to Part II, Item 7 - Management's
Discussion and Analysis of Financial Condition and Results of
Operations for further discussion.
While the ultimate liability with respect to the above matters,
including any additional liability not provided for, is not
presently determinable, it is the opinion of management, after
consultation with counsel to the Corporation, that any
liabilities resulting therefrom will not have a material adverse
effect on the Corporation's consolidated financial position or on
its results of operations if such operations continue at the
present level.
In 1985, the United States District Court, Southern District of
New York (the "District Court"), in connection with pending
patent actions between BIC Sport U.S.A. Inc. and Windsurfing
International, ruled that Windsurfing's sailboard patent was
valid and was infringed by BIC boards. The patent in question
expired in January 1987.
<PAGE>
Item 3 - Legal Proceedings (Continued)
--------------------------------------
By decision dated April 8, 1991, the District Court awarded
damages of lost profits to Windsurfing International based upon a
market share theory. BIC appealed the decision and on August 4,
1993, the United States Court of Appeal for the Federal Circuit
reversed the District Court's award based on lost profits and
remanded the case to the District Court for a determination of
damages based upon a reasonable royalty. On November 4, 1994,
BIC and Windsurfing International entered into a settlement
agreement whereby BIC paid $1.3 million to Windsurfing
International in full and final settlement of this matter.
In November 1992, a state court jury in Creek County, Oklahoma,
in a 9 to 3 verdict, awarded $11 million in actual damages and
$11 million in punitive damages against the Corporation in
connection with a case involving a cigarette lighter. On May 3,
1994, the Court of Appeals of Oklahoma reduced the amount of
punitive damages by $8 million. On May 23, 1994, BIC filed a
petition for writ of certiorari with the Oklahoma Supreme Court
and on July 13, 1994, the Oklahoma Supreme Court denied BIC's
petition, thereby concluding this matter. This decision did not
have a significant effect on the Corporation's consolidated
financial position or on its results of operations.
In May 1994, BIC filed a petition with the United States
Department of Commerce ("DOC") and United States International
Trade Commission for the imposition of antidumping duties against
disposable lighters from Thailand and China. The petition
charged that disposable lighters from Thailand and China are
being "dumped" or sold in the United States at less than fair
value. During October and December of 1994, the DOC ruled
favorably on BIC's petition in preliminary decisions imposing
antidumping duties on disposable lighters imported from Thailand
and China, respectively. Final determinations are expected in
1995.
Item 4 - Submission of Matters to a Vote of Security Holders
------------------------------------------------------------
No matters were submitted during the fourth quarter of fiscal
year 1994 to a vote of security holders through solicitation of
proxies or otherwise.
PART II
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Item 5 - Market for Registrant's Common Shares and Related
Shareholder Matters
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Set forth below is the range of sales prices of the
Corporation's common shares on the New York Stock Exchange for
each quarter during 1994 and 1993.
1994 1993
---- ----
High Low High Low
---- --- ---- ----
First $31 7/8 $28 First $41 $30 7/8
Second 29 1/4 26 1/2 Second 33 7/8 26
Third 30 7/8 28 Third 31 3/8 27
Fourth 30 25 5/8 Fourth 33 5/8 27
The Corporation paid quarterly cash dividends which totaled
$0.80 in 1994 and $0.72 in 1993. During the first quarter of
1995, the Board of Directors voted an increase in the regular
quarterly dividend from $0.20 per share to $0.23 per share,
effective with the dividend paid on February 1, 1995, to
shareholders of record on January 18, 1995.
In 1993, the Corporation amended its Certificate of
Incorporation to increase the number of authorized common shares,
$1 par value, from 25,000,000 to 50,000,000.
<PAGE>
Item 5 - Market for Registrant's Common Shares and Related
Shareholder Matters (Continued)
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As of January 25, 1995, there were approximately 1,400
shareholders of record of the Corporation's Common Shares.
Item 6 - Selected Financial Data
--------------------------------
The following selected consolidated financial data for the five
fiscal years ended January 1, 1995, insofar as it relates to the
1994, 1993 and 1992 fiscal years, should be read in conjunction
with the Corporation's consolidated financial statements included
herein.
FISCAL YEAR
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(In thousands,
except for
per share data) 1994 1993 1992 1991 1990
---------------- ---- ---- ---- ---- ----
Net sales $475,118 $439,311 $417,377 $369,171 $329,246
Income before
income taxes,
extraordinary
credit and
cumulative
effect of
changes in
accounting
principles 87,207 73,986 67,278 46,616 41,067
Net income 51,021 34,964 39,935 28,059 24,055
Total assets 358,687 336,216 308,466 280,205 257,107
Per share: (1)
Income before
extraordinary
credit and
cumulative effect
of changes in
accounting
principles $2.19 $1.90 $1.70 $1.12 $0.92
Net income 2.17 1.48 1.70 1.16 0.99
Cash dividends 0.80 0.72 1.06 0.56 1.06
______________________________
(1) Per share amounts have been retroactively restated to reflect
the 1992 share split effected in the form of a 100% share
dividend. Cash dividends per share represent the total
dividends paid each year. The 1992 and 1990 dividends included
a special cash dividend of $0.50 per share.
Item 7 - Management's Discussion and Analysis of Financial
Condition and Results of Operations
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Liquidity and Capital Resources
-------------------------------
The cash required by the Corporation for working capital,
capital expenditures and dividend payments was generated
primarily from operations. The Corporation expects to continue
to satisfy most of its cash requirements through internally
generated funds. The Corporation's current ratio was 2.24 in
1994 and 1.87 in 1993, reflecting the Corporation's highly liquid
position and ability to finance its current operations without
significant short-term borrowings.
Trade and other receivables, net of allowance for doubtful
accounts, were $62.9 million at January 1, 1995, as compared with
$52.0 million at January 2, 1994. The increase is primarily due
to a 16.7% increase in net sales for the fourth quarter of 1994,
as compared to the same period in the prior year.
As reflected in the Consolidated Balance Sheets, inventories
decreased by $5.1 million in 1994. This decrease was largely
attributable to a reduction in the inventory valuation of the
Corporation's Mexican subsidiary due to the translation effect of
the peso devaluation. Average inventory turnover was 4.3 times in
1994 and 4.0 times in 1993.
<PAGE>
Liquidity and Capital Resources (Continued)
-------------------------------------------
At January 1, 1995, the Corporation had no bank borrowings,
while at January 2, 1994, bank borrowings totaled $6.7 million.
The 1993 bank borrowings primarily reflected borrowings by the
Corporation's United States operations. Information concerning
the Corporation's bank borrowings is contained in Note 5 of Notes
to Consolidated Financial Statements.
As reflected in the Consolidated Statements of Cash Flows,
accounts payable and accrued expenses increased by $9.0 million
in 1994 and decreased by $2.8 million in 1993. The 1994 increase
is largely due to an increase in accrued advertising and
promotion costs and accrued income taxes, in the United States.
The increase also includes an increase in the Corporation's
Mexican subsidiary's accounts payable balance. The 1993 decrease
was primarily due to the timing of income tax payments by the
Corporation's Canadian subsidiary.
Capital spending decreased in 1994 and 1993. Purchases of
property, plant and equipment were $21.7 million in 1994 and
$41.2 million in 1993. Capital spending in 1994 included
purchases of machinery and equipment for the new child-resistant
lighter manufacturing process, a new ink dye manufacturing
process in stationery products (the Corporation previously
purchased ink dye from Societe BIC S.A., the Corporation's
majority shareholder). 1994 spending was also for capacity,
productivity and product quality improvements in stationery
products, and productivity increases and improvements in shavers.
Spending in 1993 included purchases of machinery and equipment
for productivity increases and quality improvements in stationery
products and lighters; capacity increases in stationery products
and new stationery products; expansions of the Duncan, South
Carolina; Fountain Inn, South Carolina; Clearwater, Florida and
Cuautitlan, Mexico facilities and building improvements for the
Gaffney, South Carolina facility.
In July 1993, the U.S. Environmental Protection Agency ("EPA")
issued its final volumetric ranking of Potentially Responsible
Parties ("PRPs") for the Solvents Recovery Service of New England
("SRSNE") Superfund Site in Southington, Connecticut. The
Corporation has been notified that it is a PRP at the Site and
has been ranked, by the EPA, number 192 of a total of 1,659 PRPs.
This ranking represents less than 1% of the total volume of waste
disposed at the SRSNE Site, with the first 191 PRPs representing
90% of the total volume.
The Corporation cannot predict with certainty the total costs
of cleanup, the Corporation's share of the total costs, the
extent to which contributions will be available from other
parties, the amount of time necessary to complete the cleanup, or
the availability of insurance coverage. Based on currently
available information, the Corporation believes that its share of
the ultimate cleanup costs at this Site will not have a material
adverse impact on the Corporation's financial position or on its
results of operations, if such operations continue at the present
level.
At January 1, 1995 and January 2, 1994, the Corporation carried
no long-term debt. At January 1, 1995, unused lines of credit
were $113.0 million and standby letters of credit were $29.6
million, which management believes is more than adequate to meet
the Corporation's current or future requirements if operations
continue at the present level.
In January 1994, the Corporation concluded negotiations with
its unionized employees, local utilities and local taxing
authorities. Concessions received through these negotiations
will result in a modest, but important, reduction in future
operating costs at its Milford, Connecticut facility. In
addition, the Corporation has accepted from the State of
Connecticut a $9 million grant and financing package to offset
capital spending for its Milford, Connecticut facility.
<PAGE>
Liquidity and Capital Resources (Continued)
-------------------------------------------
Consistent with common practice, the Corporation self-insures
to a degree against certain types of risk. The Corporation also
has in place risk management programs other than insurance to
minimize exposure to loss. The programs remained relatively
unchanged from the prior year. Management believes its overall
risk management and insurance programs are adequate to protect
its assets and earnings against significant loss, provided that
its results of operations continue at the present level.
Results of Operations
---------------------
In 1994, the Corporation's net sales increased by $35.8 million
to $475.1 million due to increased sales of stationery products
of $23.5 million, lighters of $6.6 million and shavers of $6.8
million, partially offset by a decline in sport products of $1.1
million. The increase in stationery products reflects an
increase in the number of units sold and higher average selling
prices of approximately 5% by its North American operations. The
Corporation's Special Markets Division made significant
contributions to these improvements. The improvement in lighters
primarily represents an increase in units sold and higher average
selling prices for the BIC fixed flame lighter in the United
States. The shaver improvement is attributable to an increase in
the number of BIC twin blade shaver units sold and higher average
selling prices.
In 1993, the Corporation's net sales increased by $21.9 million
to $439.3 million due to increased sales of stationery products
of $17.1 million, lighters of $1.3 million and shavers of $4.0
million, partially offset by a decline in sport products of $0.5
million. The increase in stationery products primarily
represented an increase in average selling prices of
approximately 9% by its North American operations. The increase
in lighters primarily reflected an increase in units sold of
approximately 3% by its United States operations. The shaver
increase was attributable to higher average selling prices of
approximately 10% in North America. This shaver increase was
partially offset by a slight decline in units sold.
Net sales of sport products decreased by $1.1 million in 1994
and by $0.5 million in 1993. These reductions primarily reflect
decreases in the number of units sold. Income (loss) before
income taxes and cumulative effect of changes in accounting
principles for sport products was $(0.9) million in 1994 and $1.6
million in 1993. The $2.5 million decrease in income is
primarily due to adjustments in the provision related to
sailboard litigation.
Foreign sales increased by approximately 4% in 1994, while
remaining relatively flat in 1993. The increase in 1994 is
primarily due to improvements in sales by the Corporation's
Canadian subsidiary, and also to increased export sales by the
United States operations. The Corporation's other foreign
operations also contributed to the sales improvements.
The Corporation's purchases from Societe BIC, S.A., the
Corporation's majority shareholder, and from other affiliated
companies were $41.1 million in 1994 and $42.2 million in 1993.
The Corporation purchases from Societe BIC, S.A. and other
affiliated companies, products that it does not presently
manufacture, certain component parts and machinery and equipment.
Information concerning the Corporation's transactions and
balances with Societe BIC, S.A. and other related parties is
contained in Note 13 of Notes to Consolidated Financial
Statements.
<PAGE>
Results of Operations (Continued)
---------------------------------
Gross profit as a percentage of net sales increased by 2.7
percentage points in 1994 and 0.4 percentage points in 1993. The
1994 increase primarily reflects improvements in the United
States and Mexican operations. In the United States, higher
average selling prices in each of the Corporation's core
operations (stationery products, lighters and shavers)
contributed to the gross profit increase. Lower unit costs in
stationery products and shavers also contributed to this
increase. These improvements were partially offset by slightly
higher unit costs in lighters. The lower unit costs in
stationery products were principally due to manufacturing
efficiencies. In shavers, the reduction was the result of
manufacturing efficiencies and favorable foreign exchange rates
associated with imports. Higher unit costs in lighters were due
to the conversion to BIC Lighter with Child Guard(R). The
improvements in the Mexican operations were largely due to higher
average selling prices and manufacturing efficiencies in
stationery products.
Advertising, selling, general and administrative, marketing and
research and development expenses increased by $11.8 million to
$145.5 million in 1994 and by $7.3 million to $133.7 million in
1993. The 1994 increase primarily reflects higher selling
expenses, a 9% increase in marketing expenses and an increase in
bad debt expense. The increase in selling expense is related to
higher sales levels. The higher marketing costs are attributable
to an increase in consumer promotions in the United States, and
to the launch of the twin blade shaver in Mexico. The 1993
increase reflected higher selling expenses and an 18% increase in
marketing expenses. These increases were partially offset by an
8% decrease in general and administrative expenses. The increase
in selling expense was attributable to higher sales levels. The
increase in marketing was related to the costs associated with
the promotion of the Corporation's line of twin blade shavers.
The decrease in general and administrative expenses reflected a
decrease in the provision for general liability and workers'
compensation insurance, relocation costs and bad debt expense.
These decreases were partially offset by an increase in the
amortization of intangibles associated with the purchase of Wite-
Out Products, Inc.
Other income - net decreased by $4.2 million in 1994 and
increased by $2.1 million in 1993. The 1994 decrease is due to
lower net foreign currency gains reported in 1994, and to a write
down of certain obsolete manufacturing machinery which occurred
in 1994. The 1993 increase was due to higher net foreign
currency gains partially offset by lower interest income and
higher interest expense in 1993.
The effective tax rate has varied each year as follows: 40.8%
in 1994, 39.5% in 1993 and 40.6% in 1992. Information concerning
the Corporation's income tax expense is contained in Note 11 of
Notes to Consolidated Financial Statements.
Income before cumulative effect of changes in accounting
principles increased by $6.9 million and by $4.8 million in 1994
and 1993, respectively. The 1994 increase primarily reflects
improvements in stationery products and shavers in the United
States. The Corporation's foreign operations also contributed to
the 1994 profit increases. The 1993 increase was primarily due
to improvements in core operations (stationery products, lighters
and shavers) in the United States.
In 1994, net income included a $0.6 million charge,
representing the cumulative effect of a change in accounting
principle which resulted from the adoption of Statement of
Financial Accounting Standards ("SFAS") 112, "Employers'
Accounting for Postemployment Benefits." Refer to New Accounting
Standards below for further discussion.
<PAGE>
Results of Operations (Continued)
---------------------------------
In 1993, net income included a $9.8 million charge,
representing the cumulative effect of a change in accounting
principle which resulted from the adoption of SFAS 106,
"Employers' Accounting for Postretirement Benefits Other Than
Pensions." Refer to New Accounting Standards below for further
discussion.
New Accounting Standards
------------------------
Effective January 3, 1994, the Corporation adopted SFAS 112,
"Employers' Accounting for Postemployment Benefits." This new
standard requires that the cost of benefits provided to former or
inactive employees be recognized on the accrual basis of
accounting. Previously, the Corporation recognized postemployment
benefits on a cash basis or at the date the event gave rise to
the payment of these benefits. In accordance with the provisions
of the Collective Bargaining Agreement between BIC Corporation
and Local 134 United Rubber, Cork, Linoleum and Plastic Workers
of America, the Corporation provides severance benefits to its
unionized employees. The Corporation also provides medical and
life insurance benefits to salaried employees receiving long-term
disability benefits. The cumulative effect of adopting SFAS 112
was a one-time after-tax charge of $0.6 million, or $0.02 per
share. The adoption of SFAS 112 had no effect on the
Corporation's cash flow.
Effective January 4, 1993, the Corporation adopted SFAS 106,
"Employers' Accounting for Postretirement Benefits Other Than
Pensions." The Corporation elected to recognize the cumulative
effect of this obligation on the immediate recognition basis.
The cumulative effect as of January 4, 1993 of adopting SFAS 106
was a one-time after tax charge of $9.8 million, or $0.42 per
share. The adoption of SFAS 106 had no effect on the
Corporation's cash flow.
Effective January 4, 1993, the Corporation adopted SFAS 109,
"Accounting for Income Taxes." Under SFAS 109, the deferred tax
provision is determined under the asset/liability method. Under
this method, deferred tax assets and liabilities are recognized
based on differences between financial statement and tax bases of
assets and liabilities using presently enacted tax rates. There
was no material cumulative effect on the Corporation's financial
position or on its results of operations by adopting SFAS 109.
Item 8 - Financial Statements and Supplementary Data
----------------------------------------------------
The consolidated financial statements and supplementary data
are set forth beginning on page 14 of this Annual Report.
Item 9 - Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure
-----------------------------------------------------------------
There were no changes in accountants, or disagreements with
accountants on accounting principles or practices, or financial
statement disclosure.
PART III
--------
Item 10 - Directors and Executive Officers of the Registrant*
-------------------------------------------------------------
Item 11 - Executive Compensation*
---------------------------------
Item 12 - Security Ownership of Certain Beneficial Owners and
Management*
------------------------------------------------------------------
<PAGE>
Item 13 - Certain Relationships and Related Transactions*
---------------------------------------------------------
*Responses to Items 10 through 13 are omitted since the
Corporation will, no later than 120 days after January 1, 1995,
the close of its most recent fiscal year, file a definitive proxy
statement pursuant to Regulation 14(a) of the General Rules and
Regulations under the Securities Exchange Act of 1934.
PART IV
-------
Item 14 - Exhibits, Financial Statement Schedules and Reports on
Form 8-K
------------------------------------------------------------------
(a) 1. Financial Statements:
See the attached Index to Consolidated Financial
Statements and Financial Statement Schedules.
2. Financial Statement Schedules:
See the attached Index to Consolidated Financial
Statements and Financial Statement Schedules.
3. Exhibits:
3. a. Restated Certificate of Incorporation, as filed May
5, 1993. (1)
b. By-Laws, as amended. (2)
4. Instruments relating to long-term debt
are not filed, but the Registrant agrees to file a copy
of such instruments upon the request of the Securities
and Exchange Commission.
9. a. Voting Trust Agreement, dated February 5,
1991, by and among Societe BIC, S.A., Marcel L. Bich,
Neil A. Polio, Bruno Bich, Francois Bich and BIC
Corporation, as amended February 3, 1992, for the
purpose of naming Alexander Alexiades as successor
voting trustee. (3)
b. Amendment to Voting Trust Agreement, dated July 5,
1993. (1)
10. a. Selected Executive Retirement Plan, as amended. (1)
b. Agreement, dated July 1, 1971, including
amendments, between Societe BIC, S.A. and BIC Pen
Corporation. (3)
21. Subsidiaries of the Registrant.
23. Consent of Independent Auditors.
_________________________
(1) Incorporated by reference to the Corporation's Annual Report on
Form 10-K for its fiscal year ended January 2, 1994.
(2) Incorporated by reference to the Corporation's Annual Report on
Form 10-K for its fiscal year ended January 3, 1993.
(3) Incorporated by reference to the Corporation's Annual Report on
Form 10-K for its fiscal year ended December 30, 1990.
Shareholders may obtain a copy of any exhibit not contained
herein by writing to the Secretary, BIC Corporation, 500 BIC
Drive, Milford, CT 06460. A charge of 50 cents per page to
cover the cost of copying and handling will be imposed.
(b) No reports on Form 8-K were filed by the Corporation during
the last quarter of its fiscal year ended January 1, 1995.
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
BIC CORPORATION
By: BRUNO BICH
Bruno Bich, Chairman and Chief Executive Officer
Date: March 9, 1995
Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons
on behalf of the Registrant and in the capacities and on the
dates indicated.
SIGNATURE AND TITLE DATE
------------------- ----
BRUNO BICH March 9, 1995
----------------------------------------
(Bruno Bich)
Chairman and Chief Executive Officer and
Director
(Chief Executive Officer)
RAYMOND WINTER March 9, 1995
-----------------------------------------
(Raymond Winter)
President and Chief Operating Officer and
Director
(Chief Operating Officer)
ROBERT L. MACDONALD March 9, 1995
-----------------------------------------
(Robert L. Macdonald)
Vice President-Finance and Treasurer
(Principal Financial and Accounting
Officer)
ALEXANDER ALEXIADES March 9, 1995
-----------------------------------------
(Alexander Alexiades)
Director
ROBERT E. ALLEN March 9, 1995
-----------------------------------------
(Robert E. Allen)
Director
DAVID W. HELENIAK March 9, 1995
-----------------------------------------
(David W. Heleniak)
Director
ANTOINE G. TREUILLE March 9, 1995
-----------------------------------------
(Antoine G. Treuille)
Director
<PAGE>
BIC CORPORATION AND SUBSIDIARIES
--------------------------------
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
AND FINANCIAL STATEMENT SCHEDULES
------------------------------------------
PAGE
Report of Independent Auditors 15
Consolidated Financial Statements:
----------------------------------
Consolidated Balance Sheets, January 1, 1995 and 16
January 2, 1994
Statements of Consolidated Income for the 1994, 17
1993 and 1992 Fiscal Years
Statements of Consolidated Retained Earnings for 17
the 1994, 1993 and 1992 Fiscal Years
Statements of Consolidated Cash Flows for the 18
1994, 1993 and 1992 Fiscal Years
Notes to Consolidated Financial Statements 19
Consolidated Financial Statement Schedule for the
Years Ended January 1, 1995, January 2, 1994
and January 3, 1993:
------------------------------------------------
II - Consolidated Valuation Accounts 32
All other financial statement schedules have been omitted
because the conditions requiring the filing thereof do not exist
or because the required information is shown in the consolidated
financial statements or notes thereto.
<PAGE>
(LOGO OF DELOITTE & TOUCHE)
REPORT OF INDEPENDENT AUDITORS
To the Shareholders of BIC Corporation:
We have audited the accompanying consolidated financial
statements and related financial statement schedule of BIC
Corporation and its subsidiaries (the "Corporation") listed in
the preceding Index to Consolidated Financial Statements and
Financial Statement Schedule of the Annual Report on Form 10-K of
the Corporation for the year ended January 1, 1995. These
consolidated financial statements and financial statement
schedule are the responsibility of the Corporation's management.
Our responsibility is to express an opinion on the consolidated
financial statements and financial statement schedule 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 management, as well as evaluating
the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, such consolidated financial statements present
fairly, in all material respects, the financial position of BIC
Corporation and its subsidiaries at January 1, 1995 and January
2, 1994 and the consolidated results of their operations and
their cash flows for each of the three fiscal years in the period
ended January 1, 1995 in conformity with generally accepted
accounting principles. Also, in our opinion, such consolidated
financial statement schedule, when considered in relation to the
basic consolidated financial statements taken as a whole,
presents fairly in all material respects, the information set
forth therein.
As described in Note 1 to the consolidated financial statements,
the Corporation changed its method of accounting for
postemployment benefits in 1994 and for postretirement benefits
other than pensions in 1993.
DELOITTE & TOUCHE LLP
New Haven, Connecticut
January 27, 1995
<PAGE>
BIC CORPORATION AND SUBSIDIARIES
--------------------------------
CONSOLIDATED BALANCE SHEETS
JANUARY 1, 1995 and JANUARY 2, 1994
-----------------------------------
(Dollars in thousands, except January 1, January 2,
for share data) 1995 1994
----------------------------- ---------- ----------
ASSETS:
-------
Current Assets:
---------------
Cash and Cash Equivalents $ 48,091 $ 24,094
Receivables - Trade and Other (Net of
Allowance for Doubtful Accounts 1994 -
$4,530 and 1993 - $4,084) 62,867 52,019
Inventories 54,363 59,426
Deferred Income Taxes 18,549 16,809
Other 10,575 13,637
-------- --------
Total Current Assets 194,445 165,985
Property, Plant and Equipment - Net 132,553 140,317
Other Assets 31,689 29,914
-------- --------
Total $358,687 $336,216
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY:
-------------------------------------
Current Liabilities:
--------------------
Bank Borrowings $ 6,731
Accounts Payable - Trade and Other $ 18,915 21,179
Accrued Expenses:
-----------------
Federal and State Income Taxes 8,526 8,085
Insurance 23,261 22,739
Payroll and Payroll Taxes 7,200 6,108
Other 28,727 23,911
-------- --------
Total Current Liabilities 86,629 88,753
-------- --------
Noncurrent Liabilities:
-----------------------
Postretirement Benefits Other Than Pensions 19,882 17,854
Other 4,259 2,921
-------- --------
Total Noncurrent Liabilities 24,141 20,775
-------- --------
Contingencies and Commitments (See Note 12)
-------------------------------------------
Shareholders' Equity:
---------------------
Preferred Shares ($1 Par Value; Authorized
- 1,000,000; No Shares Issued or
Outstanding)
Common Shares ($1 Par Value; Authorized
- 50,000,000; Outstanding - 23,559,244) 23,559 23,559
Retained Earnings 238,076 205,902
Foreign Currency Translation Adjustment (13,718) (2,773)
-------- --------
Total Shareholders' Equity 247,917 226,688
-------- --------
Total $358,687 $336,216
======== ========
See Notes to Consolidated Financial Statements.
<PAGE>
BIC CORPORATION AND SUBSIDIARIES
--------------------------------
STATEMENTS OF CONSOLIDATED INCOME
FOR THE 1994, 1993 AND 1992 FISCAL YEARS
----------------------------------------
(In thousands, except for per share data) 1994 1993 1992
----------------------------------------- ---- ---- ----
Net Sales $475,118 $439,311 $417,377
Cost of Goods Sold 242,457 235,820 225,806
-------- -------- --------
Gross Profit 232,661 203,491 191,571
Advertising, Selling, General and
Administrative, Marketing and Research
and Development Expenses 145,495 133,732 126,445
-------- -------- --------
Income from Operations 87,166 69,759 65,126
Other Income - Net 41 4,227 2,152
-------- -------- --------
Income Before Income Taxes and Cumulative
Effect of Changes in Accounting
Principles 87,207 73,986 67,278
Provision for Income Taxes 35,563 29,206 27,343
-------- -------- --------
Income Before Cumulative Effect of
Changes in Accounting Principles 51,644 44,780 39,935
Cumulative Effect of Changes in
Accounting Principles for:
-------------------------------
Postemployment Benefits, Net of
Taxes of $410 (623)
Postretirement Benefits Other
Than Pensions, Net of Taxes of
$6,384 (9,816)
-------- -------- --------
Net Income $ 51,021 $ 34,964 $ 39,935
======== ======== ========
Earnings Per Common Share:
Income Before Cumulative Effect of
Changes in Accounting Principles $2.19 $1.90 $1.70
Cumulative Effect of Changes in
Accounting Principles (0.02) (0.42)
-------- -------- --------
Net Income $2.17 $1.48 $1.70
======== ======== ========
STATEMENTS OF CONSOLIDATED RETAINED EARNINGS
FOR THE 1994, 1993 AND 1992 FISCAL YEARS
--------------------------------------------
(In thousands) 1994 1993 1992
-------------- ---- ---- ----
Balance - Beginning of Year $205,902 $187,900 $183,416
Net Income 51,021 34,964 39,935
Dividends - Cash (18,847) (16,962) (24,973)
- Common Share Split Effected
in the Form of a 100% Share
Dividend (10,478)
-------- -------- --------
Balance - End of Year $238,076 $205,902 $187,900
======== ======== ========
See Notes to Consolidated Financial Statements.
<PAGE>
BIC CORPORATION AND SUBSIDIARIES
--------------------------------
STATEMENTS OF CONSOLIDATED CASH FLOWS
FOR THE 1994, 1993 AND 1992 FISCAL YEARS
----------------------------------------
(In thousands) 1994 1993 1992
-------------- ---- ---- ----
CASH FLOWS FROM OPERATING ACTIVITIES:
-------------------------------------
Net Income $51,021 $34,964 $39,935
Adjustments to Reconcile Net Income
to Net Cash Provided by Operating
Activities:
-----------------------------------
Depreciation and Amortization 23,801 20,881 15,703
Provision for Losses on Receivables
- Trade and Other 1,467 85 2,286
Effects of Foreign Currency Transactions (208) 753 (264)
Deferred Income Taxes (2,680) (1,177) 369
Cumulative Effect of Changes in
Accounting Principles 623 9,816
Other 2,771 2,063 (354)
Changes in Operating Assets and Liabilities:
--------------------------------------------
(Increase) in Receivables - Trade
and Other (15,474) (1,915) (4,308)
(Increase) Decrease in Inventories 1,538 (1,266) (10,945)
(Increase) Decrease in Other Assets 2,566 (778) (477)
Increase (Decrease) in Accounts
Payable and Accrued Expenses 9,017 (2,790) 5,520
-------- -------- --------
Net Cash Provided by Operating Activities 74,442 60,636 47,465
-------- -------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
-------------------------------------
Purchases of Property, Plant and
Equipment (21,674) (41,181) (44,908)
Proceeds from Sale of Property,
Plant and Equipment 1,248 672 965
Purchases of Trademarks and Patents (841) (724) (775)
Purchase of Investment (2,000)
Purchase of Wite-Out Products, Inc.,
Net of Cash Acquired (19,307)
Deferred Charges, Deposits and Other 60 (2,114) (1,834)
-------- -------- --------
Net Cash Used in Investing Activities (23,207) (43,347) (65,859)
-------- -------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
-------------------------------------
Net Increase (Decrease) in Bank Borrowings (6,716) (878) 7,687
Dividends Paid (18,847) (16,962) (24,973)
-------- -------- --------
Net Cash Used in Financing Activities (25,563) (17,840) (17,286)
-------- -------- --------
Effect of Exchange Rate Changes on Cash (1,675) (589) (627)
-------- -------- --------
Increase (Decrease) in Cash and Cash
Equivalents 23,997 (1,140) (36,307)
Cash and Cash Equivalents, Beginning
of Year 24,094 25,234 61,541
-------- -------- --------
Cash and Cash Equivalents, End of Year $48,091 $24,094 $25,234
======== ======== ========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
--------------------------------------------------
Cash Paid during the Year for:
------------------------------
Interest $ 907 $ 635 $ 443
======== ======== ========
Income Taxes $35,678 $34,245 $26,339
======== ======== ========
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING ACTIVITIES:
-------------------------------------------------------
In 1992, the Corporation purchased
all the capital stock of Wite-Out
Products, Inc. for $19,848.
Fair Value of Assets Acquired $20,875
Cash Paid (19,848)
--------
Liabilities Assumed $ 1,027
========
See Notes to Consolidated Financial Statements.
<PAGE>
BIC CORPORATION AND SUBSIDIARIES
--------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
------------------------------------------------
A summary of significant accounting policies for BIC
Corporation and its subsidiaries (the "Corporation"),
manufacturers and distributors of high-quality, low-cost consumer
products, is as follows:
Consolidation
-------------
The consolidated financial statements include the accounts of
BIC Corporation and its subsidiaries. An investment in an
affiliated company is accounted for on the equity method. All
significant intercompany balances and transactions have been
eliminated.
Cash and Cash Equivalents
-------------------------
The Corporation's cash management policy is to invest in highly
liquid, short-term financial instruments. Cash equivalents
consist of U.S. Government obligations, time deposits, overnight
securities and other short-term, highly liquid securities with
original maturities of three months or less.
Inventories
-----------
Inventories are valued at the lower of cost (determined on the
first-in, first-out basis) or market.
Property, Plant and Equipment
-----------------------------
Property, plant and equipment is recorded at cost.
Depreciation, principally on the declining balance method, is
provided over the estimated useful lives of the assets as
follows:
Buildings and improvements 10-50 years
Machinery and equipment 3-12 years
Expenditures for maintenance and repairs are charged to
operations as incurred. Expenditures for betterments and major
renewals are capitalized. Costs of assets sold or retired and
the related amounts of accumulated depreciation are eliminated
from the accounts in the year of disposal and any resulting gains
or losses are included in income.
Intangibles
-----------
Costs pertaining to goodwill and patents are amortized on the
straight-line method over five to seventeen years. Trademarks
are amortized over five to forty years.
Accrued Expenses - Insurance
----------------------------
Accrued expenses - insurance represents the estimated costs of
known and anticipated claims under the Corporation's product
liability (principally relating to its lighters) and workers'
compensation insurance policies. For each claim, the Corporation
maintains self-insurance up to the estimated amount of the
probable claim or the amount of the deductible, whichever is
lower. At each financial reporting date, probable claim amounts,
individually or in the aggregate, were not expected to materially
exceed the deductible. Claims are generally settled within five
years of origination.
<PAGE>
BIC CORPORATION AND SUBSIDIARIES
--------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
------------------------------------------------------
Employee Benefit Plans
----------------------
Substantially all employees in the United States and Canada are
covered by defined benefit pension plans. The plans are
noncontributory and provide for pension benefits based on average
pay and years of service to the Corporation. Funding for the
pension plans is based on a review of the specific requirements
and an evaluation of the assets and liabilities of each plan.
The Corporation has a share purchase plan for substantially all
full-time United States unionized employees who elect to
participate and a 401(k) Savings and Investment Plan for
unionized and non-unionized United States employees. The
Corporation's Canadian subsidiary has a Group Registered
Retirement Plan for its employees. Some plans provide that the
Corporation match a portion of participant contributions.
The Corporation provides certain postretirement medical and
life insurance benefits for qualifying retired and active
unionized and non-unionized employees in the United States. Most
retirees outside the United States are covered by government
sponsored and administered programs.
Effective January 3, 1994, the Corporation adopted SFAS 112,
"Employers' Accounting for Postemployment Benefits." This new
standard requires that the cost of benefits provided to former or
inactive employees be recognized on the accrual basis of
accounting. Previously, the Corporation recognized postemployment
benefits on a cash basis or at the date the event gave rise to
the payment of these benefits. In accordance with the provisions
of the Collective Bargaining Agreement between BIC Corporation
and Local 134 United Rubber, Cork, Linoleum and Plastic Workers
of America, the Corporation provides severance benefits to its
unionized employees. The Corporation also provides medical and
life insurance benefits to salaried employees receiving long-term
disability benefits. The cumulative effect of adopting SFAS 112
was a one-time after-tax charge of $0.6 million, or $0.02 per
share. Aside from the one-time effect of the cumulative
adjustment, adoption of SFAS 112 was not material to the
Corporation's 1994 consolidated results of operations.
In 1993, the Corporation adopted Statement of Financial
Accounting Standards ("SFAS") 106, "Employers' Accounting for
Postretirement Benefits Other Than Pensions." The Corporation
elected to recognize the cumulative effect of this obligation on
the immediate recognition basis. The cumulative effect as of
January 4, 1993 of adopting SFAS 106 was a one-time after-tax
charge of $9.8 million, or $0.42 per share. Aside from the one-
time effect of the cumulative adjustment, adoption of SFAS 106
was not material to the Corporation's 1994 and 1993 consolidated
results of operations.
Foreign Currency
----------------
Assets and liabilities of certain foreign subsidiaries, whose
local currency is the functional currency, are translated at
exchange rates in effect at the balance sheet date. Translation
gains and losses are not included in the Statements of
Consolidated Income, but are accumulated in a separate component
of shareholders' equity. Gains and losses from foreign currency
transactions are included in the Statements of Consolidated
Income.
<PAGE>
BIC CORPORATION AND SUBSIDIARIES
--------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
------------------------------------------------------
Foreign Currency (Continued)
----------------------------
The Corporation enters into forward exchange contracts
denominated in foreign currencies providing protection from
currency fluctuations affecting certain inventory and equipment
purchase commitments denominated in foreign currencies. Gains
and losses associated with these transactions are deferred and
included in the determination of the cost of the assets acquired.
Income Taxes
------------
Effective January 4, 1993, the Corporation adopted SFAS 109,
"Accounting for Income Taxes." Under SFAS 109, the deferred tax
provision is determined under the asset/liability method. Under
this method, deferred tax assets and liabilities are recognized
based on differences between financial statement and tax bases of
assets and liabilities using presently enacted tax rates. There
was no material effect on the Corporation's financial position or
results of operations by adopting SFAS 109.
The Corporation does not provide for Federal or state income
taxes on the accumulated earnings and profits of its foreign
subsidiaries, to the extent that the current intention of the
Corporation is to allow its foreign subsidiaries to reinvest
these earnings, or to the extent that any Federal or state taxes
attributable to the repatriation of such earnings would be
substantially offset by foreign tax credits.
Earnings Per Common Share
-------------------------
Earnings per common share are based on the weighted average
number of shares outstanding in each year. The weighted average
number of shares outstanding was 23,559,244 during 1994, 1993 and
1992.
Fiscal Year
-----------
The Corporation's fiscal year is the 52 or 53 weeks ending on
the Sunday closest to December 31.
Reclassifications
-----------------
The consolidated financial statements for years prior to 1994
have been reclassified to conform with the 1994 financial
statement presentation.
2. INVENTORIES:
-----------------
Inventories consist of the following:
January 1, January 2,
(In thousands) 1995 1994
-------------- ---------- ---------
Work in process, finished stock
and packaging materials $46,503 $49,363
Raw materials 7,860 10,063
---------- ---------
Total $54,363 $59,426
========== =========
<PAGE>
BIC CORPORATION AND SUBSIDIARIES
--------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
------------------------------------------------------
3. PROPERTY, PLANT AND EQUIPMENT - NET:
-----------------------------------------
Property, plant and equipment - net consists of the following:
January 1, January 2,
(In thousands) 1995 1994
-------------- ---------- ----------
Land $ 2,706 $ 2,841
Buildings and improvements 57,722 57,428
Machinery and equipment 204,556 193,234
Construction in progress 18,934 24,742
---------- ----------
Total 283,918 278,245
Less accumulated depreciation 151,365 137,928
---------- ----------
Total $132,553 $140,317
========== ==========
4. OTHER ASSETS:
------------------
Other assets consist of the following:
January 1, January 2,
(In thousands) 1995 1994
-------------- ---------- ----------
Intangibles (net of accumulated
amortization 1994 - $7,090 and
1993 - $4,716) $15,658 $17,192
Other 16,031 12,722
---------- ----------
Total $31,689 $29,914
========== ==========
5. BANK BORROWINGS:
---------------------
Information with respect to the Corporation's bank borrowings
is as follows:
January 1, January 2,
(In thousands) 1995 1994
-------------- ---------- ----------
Weighted average interest rate
at balance sheet date 6.1%
Weighted average interest rate
(actual interest expense on bank
borrowings divided by average
daily outstanding balance) 5.1% 4.3%
Unused lines of credit $112,996 $99,711
Standby letters of credit 29,571 35,488
6. OTHER CURRENT LIABILITIES:
-------------------------------
Other current liabilities consist of the following:
January 1, January 2,
(In thousands) 1995 1994
-------------- ---------- ----------
Accrued advertising and promotion $17,731 $14,242
Other 10,996 9,669
---------- ----------
Total $28,727 $23,911
========== ==========
<PAGE>
BIC CORPORATION AND SUBSIDIARIES
--------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
------------------------------------------------------
7. EMPLOYEE BENEFIT PLANS:
----------------------------
The Corporation's net periodic pension cost for 1994, 1993 and
1992 is summarized as follows:
(In thousands) 1994 1993 1992
-------------- ------- ------- -------
Service cost - benefits earned during
the period $(2,242) $(1,797) $(1,608)
Interest cost on projected benefit
obligation (4,316) (3,988) (3,641)
Actual return on plan assets (2,545) 5,151 6,060
Net amortization and deferral 8,383 107 (1,152)
------- ------- -------
Net periodic pension cost $ (720) $ (527) $ (341)
======= ======= =======
The following table sets forth the funded status at January 1,
1995 and January 2, 1994 of the Corporation's defined benefit
pension plans:
January 1, January 2,
1995 1994
---------- ----------
Over- Under- Over- Under-
(In thousands) Funded Funded Funded Funded
-------------- ------- ------- ------- -------
Fair value of plan assets $30,924 $24,923 $33,491 $27,425
Projected benefit
obligation for
services rendered
to date (26,319) (31,593) (28,150) (32,173)
------- ------- ------- -------
Excess of plan assets over
projected benefit
obligation (excess of
projected benefit
obligation over
plan assets) 4,605 (6,670) 5,341 (4,748)
Unrecognized net (gain) loss 472 2,747 (252) 2,595
Prior service costs not
yet recognized in net
periodic pension costs 384 1,014 682 20
Unrecognized net asset (2,239) (533) (2,666) (666)
------- ------- ------- -------
Prepaid pension (pension
liability) $ 3,222 $(3,442) $ 3,105 $(2,799)
======= ======= ======= =======
Actuarial present value of
benefit obligations:
--------------------------
Vested benefit obligation $20,832 $31,395 $21,822 $31,908
======= ======= ======= =======
Accumulated benefit
obligation $21,691 $31,476 $22,662 $31,993
======= ======= ======= =======
Prior service costs primarily relate to plan amendments which
retroactively increase benefits to plan participants. These
costs are recognized in net periodic pension cost over
appropriate periods.
The following assumptions were used in developing the above
benefit obligation amounts:
January 1, January 2,
1995 1994
---------- ----------
Assumed discount rate 8.0% 7.0%
Assumed rate of compensation increase 4.0% 4.0%
Expected rate of return on plan assets 10.0% 10.0%
<PAGE>
BIC CORPORATION AND SUBSIDIARIES
--------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
------------------------------------------------------
7. EMPLOYEE BENEFIT PLANS (Continued):
----------------------------------------
The plan assets were invested as follows:
January 1, January 2,
1995 1994
---------- ----------
Equity securities 63.9% 65.0%
United States Government securities 12.7 13.7
Cash equivalents and debt securities 23.4 21.3
---------- ----------
Total 100.0% 100.0%
========== ==========
Contributions under the employees share purchase plans, the
401(k) Savings and Investment Plans and the Group Registered
Retirement Plan were approximately $857,000, $728,000 and
$406,000 in 1994, 1993 and 1992, respectively.
8. POSTRETIREMENT BENEFITS OTHER THAN PENSIONS:
-------------------------------------------------
The Corporation provides certain postretirement medical and
life insurance benefits for qualifying retired and active
unionized and non-unionized employees in the United States. Most
retirees outside the United States are covered by government
sponsored and administered programs. Postretirement benefits are
not pre-funded and are paid by the Corporation as incurred.
The Corporation's net periodic postretirement benefit cost for
1994 and 1993 included the following components:
(In thousands) 1994 1993
-------------- ---- ----
Service cost - benefits attributed to
employee service during the period $1,487 $1,144
Interest cost on accumulated
postretirement benefit obligation 1,329 1,338
Unrecognized net loss 63
------ -------
Net periodic postretirement
benefit cost $2,879 $2,482
====== ======
The following table sets forth the status at January 1, 1995
and January 2, 1994 of postretirement benefits:
January 1, January 2,
(In thousands) 1995 1994
-------------- ---------- ----------
Accumulated postretirement benefit obligation:
----------------------------------------------
Retirees $ 9,088 $ 9,590
Fully eligible active plan participants 2,404 3,507
Other active plan participants 7,399 8,568
-------- --------
18,891 21,665
Unamortized net gain (loss) 991 (3,811)
-------- --------
Total $19,882 $17,854
======== ========
<PAGE>
BIC CORPORATION AND SUBSIDIARIES
--------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
------------------------------------------------------
8. POSTRETIREMENT BENEFITS OTHER THAN PENSIONS (Continued):
-------------------------------------------------------------
For measurement purposes, a 14.0% annual rate of increase in
the per capita cost was assumed for 1994 and 1993. The rate was
assumed to decrease gradually to 5.5% through the year 2009 and
remain at that level thereafter. The discount rate used in
determining the accumulated postretirement benefit obligation was
8.0% at January 1, 1995 and 7.0% at January 2, 1994. The
unamortized net gain (loss) represents a change in actuarial
assumptions (discount rate) that will be amortized over future
periods.
A 1% increase in the assumed health care cost trend rate for
each year would increase the accumulated postretirement benefit
obligation as of January 1, 1995 by $2.6 million and the net
periodic postretirement benefit cost by $523,000.
9. SHAREHOLDERS' EQUITY:
--------------------------
The Corporation declared and paid cash dividends of $0.80 per
share in 1994 and $0.72 per share in 1993. The Corporation
increased its regular quarterly dividend from $0.20 per share to
$0.23 per share, effective with the dividend payable on February
1, 1995, to shareholders of record on January 18, 1995.
In 1993, the Corporation amended its Certificate of
Incorporation to increase the number of authorized common shares,
$1 par value, from 25,000,000 to 50,000,000 shares.
Foreign currency translation adjustments included in
shareholders' equity were $(10,945,000), $(680,000), and
$(1,111,000) for the fiscal years 1994, 1993 and 1992,
respectively. The 1994 translation adjustment was primarily due
to the Corporation's Mexican subsidiary recording a $9,500,000
translation loss in shareholders' equity due to the translation
effect of the Mexican peso devaluation.
10. OTHER INCOME - NET:
------------------------
Other income - net consists of the following:
(In thousands) 1994 1993 1992
---- ---- ----
Income (Expense):
-----------------
Interest expense $ (353) $(1,185) $ (447)
Interest income 1,202 810 1,480
Net foreign currency gains 222 1,431 689
Miscellaneous - net (1,030) 3,171 430
------ ------- -------
Total $ 41 $ 4,227 $ 2,152
====== ======= =======
<PAGE>
BIC CORPORATION AND SUBSIDIARIES
--------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
------------------------------------------------------
11. INCOME TAXES:
------------------
The provision (credit) for income taxes consists of the
following:
(In thousands) 1994 1993 1992
-------------- ---- ---- ----
Federal:
-------
Current $27,975 $20,896 $18,365
Deferred (2,448) 227 (1,198)
------- ------- -------
Total Federal 25,527 21,123 17,167
------- ------- -------
Foreign:
--------
Current 5,212 4,016 4,334
Deferred (770) (1,137) 1,567
------- ------- -------
Total Foreign 4,442 2,879 5,901
------- ------- -------
State 5,594 5,204 4,275
------- ------- -------
Total $35,563 $29,206 $27,343
======= ======= =======
The total income tax provision shown in the Statements of
Consolidated Income differed from the total income tax expense as
computed by applying the statutory United States Federal
("Federal") income tax rate to income before income taxes and
cumulative effect of changes in accounting principles as follows:
1994 1993 1992
---- ---- ----
Statutory Federal income tax rate 35.0% 35.0% 34.0%
Increase due to:
----------------
Effect of foreign subsidiaries'
income tax rates in excess
of the statutory Federal
tax rate 1.0
State income taxes, net of
Federal tax benefit 4.2 4.6 4.2
Other - net 1.6 (0.1) 1.4
----- ----- -----
Effective income tax rate 40.8% 39.5% 40.6%
===== ===== =====
Federal income taxes have not been provided for on cumulative
unremitted earnings of foreign subsidiaries of approximately
$5,358,000 at January 1, 1995, $16,076,000 at January 2, 1994 and
$14,051,000 at January 3, 1993.
The provision for deferred Federal income taxes consists of the
following:
(In thousands) 1994 1993 1992
-------------- ---- ---- ----
Tax effect of temporary
differences arising from:
---------------------------
Depreciation $ 605 $ (94) $ 387
Insurance (311) 16 (2,757)
Accrued compensation (293) (50) 1,073
Postretirement benefits (1,049) (527) 15
Inventory valuation (612) (598) 1,071
Advertising and promotion (1,167) (512) 168
Provision for doubtful accounts (153) 405 (1,073)
Other 532 1,587 (82)
------- ------- -------
Total $(2,448) $ 227 $(1,198)
======= ======= =======
The provision for deferred foreign income taxes consists
primarily of temporary differences related to the Corporation's
Mexican subsidiary's inventory.
<PAGE>
BIC CORPORATION AND SUBSIDIARIES
--------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
------------------------------------------------------
Deferred income taxes at January 1, 1995 and January 2, 1994
consist of the following:
January 1, January 2,
(In thousands) 1995 1994
-------------- ---------- ----------
Deferred tax assets:
--------------------
Insurance $ 9,653 $ 9,342
Accrued compensation 1,629 923
Postretirement benefits 8,471 7,445
Inventory valuation 1,225
Advertising and promotion 3,052 1,885
Provision for doubtful accounts 1,726 1,563
Other 331 830
------- -------
Total 26,087 21,988
------- -------
Deferred tax liabilities:
-------------------------
Depreciation 6,382 5,720
Inventory valuation 194
------- -------
Total 6,382 5,914
------- -------
Net deferred tax asset $19,705 $16,074
======= =======
At January 1, 1995, current deferred tax assets of $18.5
million and current deferred tax liabilities of $1.3 million were
included in Deferred Income Taxes and Accrued Expenses - Other,
respectively. In addition, noncurrent deferred tax assets of
$2.5 million were included in Other Assets.
12. CONTINGENCIES AND COMMITMENTS:
-----------------------------------
The Corporation has significant contingent liabilities with
respect to pending litigation, claims and disputes, principally
relating to its lighters, which arise in the ordinary course of
its business.
In July 1993, the U.S. Environmental Protection Agency ("EPA")
issued its final volumetric ranking of Potentially Responsible
Parties ("PRPs") for the Solvents Recovery Service of New England
("SRSNE") Superfund Site in Southington, Connecticut. The
Corporation has been notified that it is a PRP at the Site and
has been ranked, by the EPA, number 192 of a total of 1,659 PRPs.
This ranking represents less than 1% of the total volume of waste
disposed at the SRSNE Site, with the first 191 PRPs representing
90% of the total volume.
The Corporation cannot predict with certainty the total costs
of cleanup, the Corporation's share of the total costs, the
extent to which contributions will be available from other
parties, the amount of time necessary to complete the cleanup, or
the availability of insurance coverage. Based on currently
available information, the Corporation believes that its share of
the ultimate cleanup costs at this Site will not have a material
adverse impact on the Corporation's financial position or on its
results of operations, if such operations continue at the present
level.
<PAGE>
BIC CORPORATION AND SUBSIDIARIES
--------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
------------------------------------------------------
12. CONTINGENCIES AND COMMITMENTS (Continued):
----------------------------------------------
In November 1992, a state court jury in Creek County, Oklahoma,
in a 9 to 3 verdict, awarded $11 million in actual damages and
$11 million in punitive damages against the Corporation in
connection with a case involving a cigarette lighter. On May 3,
1994, the Court of Appeals of Oklahoma reduced the amount of
punitive damages by $8 million. On May 23, 1994, BIC filed a
petition for writ of certiorari with the Oklahoma Supreme Court
and on July 13, 1994, the Oklahoma Supreme Court denied BIC's
petition, thereby concluding this matter. This decision did not
have a significant effect on the Corporation's consolidated
financial position or on its results of operations.
While the ultimate liability with respect to the above matters,
including any additional liability not provided for, is not
presently determinable, it is the opinion of management, after
consultation with counsel to the Corporation, that any
liabilities resulting therefrom will not have a material adverse
effect on the Corporation's consolidated financial position or on
its results of operations if such operations continue at the
present level.
13. RELATED PARTY TRANSACTIONS AND BALANCES:
---------------------------------------------
Material transactions and balances with the Corporation's
majority shareholder, Societe BIC, S.A. and with other related
parties are as follows:
(In thousands) 1994 1993 1992
-------------- ---- ---- ----
Transactions
------------
Sales to:
---------
Societe BIC, S.A. $ 1,727 $ 1,389 $ 807
Other affiliated companies 10,654 10,017 9,717
Purchases from:
--------------
Societe BIC, S.A. 24,712 25,237 27,151
Other affiliated companies 16,414 16,966 16,820
January 1, January 2,
(In thousands) 1995 1994
-------------- ---------- ----------
Balances
--------
Included in receivables:
------------------------
Societe BIC, S.A. $ 403 $ 233
Other affiliated companies 3,943 2,787
Employees 51
Included in payables:
---------------------
Societe BIC, S.A. 4,479 6,153
Other affiliated companies 2,601 3,237
<PAGE>
BIC CORPORATION AND SUBSIDIARIES
--------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
------------------------------------------------------
14. FINANCIAL INSTRUMENTS:
---------------------------
The following disclosure of the estimated fair value of
financial instruments is made in accordance with the requirements
of SFAS 107, "Disclosure about Fair Value of Financial
Instruments." The estimated fair value amounts have been
determined by the Corporation, using available market information
and appropriate valuation methodologies. However, considerable
judgment is necessarily required in interpreting market data to
develop the estimates of fair value. Accordingly, the estimates
presented herein are not necessarily indicative of the amounts
that the Corporation could realize in a current market exchange.
January 1, 1995 January 2, 1994
--------------- ---------------
Carrying Estimated Carrying Estimated
or Contract Fair or Contract Fair
(In thousands) Amount Value Amount Value
-------------- ----------- --------- ----------- ---------
Assets:
-------
Cash and cash
equivalents $48,091 $48,091 $24,094 $24,094
Liabilities:
------------
Bank borrowings 6,731 6,731
Off-balance sheet
financial instruments:
------------------------
Forward foreign
currency contracts 23,165 23,384
Unused lines of credit 112,996 See Below 99,711 See Below
Standby letters of
credit 29,571 See Below 35,488 See Below
Cash and Cash Equivalents
-------------------------
The Corporation compared the interest rates of cash equivalents
at the contract dates to the prevailing interest rates at January
1, 1995 and January 2, 1994 and determined that there were no
significant differences. Therefore, the carrying amounts of
these items are a reasonable estimate of their fair value.
Bank Borrowings
---------------
Due to the relatively short period of time between the
origination of the bank borrowings and their repayments, the
carrying amounts approximate their estimated fair value.
Forward Foreign Currency Contracts
----------------------------------
The fair value of foreign currency contracts was the amount as
of January 2, 1994 at which contracts with the same date of
maturity as existing contracts could be purchased, based on
estimates obtained from dealers.
Unused Lines of Credit and Standby Letters of Credit
----------------------------------------------------
There is no annual cost of maintaining the unused lines of
credit. The annual cost of maintaining standby letters of credit
is estimated based on fees of 1/4% to 3/4% of the amount of the
letter of credit, which would be currently charged for similar
arrangements.
<PAGE>
BIC CORPORATION AND SUBSIDIARIES
--------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
------------------------------------------------------
15. FOREIGN OPERATIONS:
------------------------
A summary of information about the Corporation's operations in
different geographic areas is as follows (see Note 13 for sales
to affiliated companies):
<TABLE>
<CAPTION>
<C> <C> <C> <C> <C> <C>
United Other Adjustments &
(In thousands) States Canada Mexico Areas Eliminations Consolidated
-------------- -------- -------- -------- -------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
1994:
-----
Net sales $405,968 $ 29,678 $ 33,086 $ 6,386 $475,118
Transfers between
geographic
areas <F1> 15,305 212 15,077 105 $(30,699)
-------- -------- -------- -------- -------- --------
Total revenues $421,273 $ 29,890 $ 48,163 $ 6,491 $(30,699) $475,118
======== ======== ======== ======== ======== ========
Income before
income taxes and
cumulative effect
of change in
accounting
principle $ 74,382 $ 5,039 $ 6,742 $ 1,020 $ 24 $ 87,207
======== ======== ======== ======== ======== ========
Identifiable
assets $313,079 $ 13,932 $ 22,991 $ 8,685 $358,687
======== ======== ======== ======== ======== ========
1993:
-----
Net sales $372,459 $ 28,625 $ 32,677 $ 5,550 $439,311
Transfers between
geographic
areas <F1> 16,234 61 11,493 21 $(27,809)
-------- -------- -------- -------- -------- --------
Total revenues $388,693 $ 28,686 $ 44,170 $ 5,571 $(27,809) $439,311
======== ======== ======== ======== ======== ========
Income before
income taxes and
cumulative effect
of change in
accounting
principle $ 64,716 $ 4,643 $ 4,438 $ 508 $ (319) $ 73,986
======== ======== ======== ======== ======== ========
Identifiable
assets $285,661 $ 10,172 $ 34,269 $ 6,114 $336,216
======== ======== ======== ======== ======== ========
1992:
-----
Net sales $351,803 $ 28,947 $ 32,165 $ 4,462 $417,377
Transfers between
geographic
areas <F1> 16,742 3 13,888 225 $(30,858)
-------- -------- -------- -------- -------- --------
Total revenues $368,545 $ 28,950 $ 46,053 $ 4,687 $(30,858) $417,377
======== ======== ======== ======== ======== ========
Income before
income taxes and
cumulative effect
of change in
accounting
principle $ 53,307 $ 6,742 $ 6,730 $ 929 $ (430) $ 67,278
======== ======== ======== ======== ======== ========
Identifiable
assets $261,605 $ 15,733 $ 25,807 $ 5,321 $308,466
======== ======== ======== ======== ======== ========
<FN>
<F1> Transfers between geographic areas are generally accounted for
at a range of cost to cost plus 10%.
<FN>
</TABLE>
<PAGE>
BIC CORPORATION AND SUBSIDIARIES
--------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
------------------------------------------------------
16. SELECTED QUARTERLY FINANCIAL DATA (Unaudited):
---------------------------------------------------
Net Income
Net (Loss)
(In thousands except Net Gross Income Per Common
for per share data) Sales Profit (Loss)(1),(2) Share (1),(2)
--------------------- ----- ------ ----- ----------
Quarter ended:
--------------
April 3, 1994 $102,777 $49,665 $ 9,091 $ 0.39
July 3, 1994 138,839 68,532 16,266 0.69
October 2, 1994 127,720 64,295 14,794 0.63
January 1, 1995 105,782 50,169 10,870 0.46
--------------- -------- ------- ------- ------
Quarter ended:
--------------
April 4, 1993 $101,199 $46,173 $ (730) $(0.03)
July 4, 1993 124,437 56,356 13,518 0.57
October 3, 1993 123,056 56,999 13,228 0.56
January 2, 1994 90,619 43,963 8,948 0.38
--------------- -------- ------- ------- ------
________________________
(1) The quarter ended April 3, 1994 includes a decrease in net
earnings for the cumulative effect of a change in accounting for
postemployment benefits of $623 or $0.02 per share.
(2) The quarter ended April 4, 1993 includes a decrease in net
earnings for the cumulative effect of a change in accounting for
postretirement benefits other than pensions of $9,816 or $0.42
per share.
<PAGE>
SCHEDULE II
-----------
BIC CORPORATION AND SUBSIDIARIES
--------------------------------
CONSOLIDATED VALUATION ACCOUNTS
FOR THE FISCAL YEARS ENDED JANUARY 1, 1995,
JANUARY 2, 1994 AND JANUARY 3, 1993
-------------------------------------------
Classification Balance Additions (Additions)
at Charged Deductions Balance
Beginning to Profit from at End
(In thousands) of Year and Loss Reserves (1) of Year
-------------- --------- --------- ----------- -------
Allowance for Doubtful Accounts:
--------------------------------
1994 $4,084 $1,467 $1,021 $4,530
1993 5,076 85 1,077 4,084
1992 2,420 2,286 (370) 5,076
______________________
(1) Principally accounts written off, less recoveries.
EXHIBIT 21
SUBSIDIARIES
------------
Set forth below are the names of BIC Corporation's subsidiaries as of
March 1, 1995.
NAME Place of Incorporation
---- ----------------------
BIC Sport U.S.A. Inc. Connecticut
BIC Inc. Canada
Industrial de Cuautitlan, S.A. de C.V. Mexico
No Sabe Fallar, S.A. de C.V. Mexico
BIC de Guatemala S.A. Guatemala
BIC Puerto Rico Inc. Puerto Rico
Xenia Insurance Company Ltd. Bermuda
Wite-Out Products, Inc. Delaware
Exhibit 23
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Post-Effective
Amendment No. 1 to Registration Statement No. 2-83363 and in
Registration Statements No. 33-57738 and No. 33-22204 of BIC
Corporation on Form S-8 of our report dated January 27, 1995,
appearing in this Annual Report on Form 10-K of BIC Corporation
for the year ended January 1, 1995.
Deloitte & Touche, L.L.P.
New Haven, Connecticut
March 27, 1995
[ARTICLE] 5
[CIK] 0000011975
[NAME] BIC CORPORATION
[MULTIPLIER] 1000
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] JAN-01-1995
[PERIOD-END] JAN-01-1995
[CASH] 48,091
[SECURITIES] 0
[RECEIVABLES] 67,397
[ALLOWANCES] 4,530
[INVENTORY] 54,363
[CURRENT-ASSETS] 194,445
[PP&E] 283,918
[DEPRECIATION] 151,365
[TOTAL-ASSETS] 358,687
[CURRENT-LIABILITIES] 86,629
[BONDS] 0
[COMMON] 23,559
[PREFERRED-MANDATORY] 0
[PREFERRED] 0
[OTHER-SE] 224,358
[TOTAL-LIABILITY-AND-EQUITY] 358,687
[SALES] 475,118
[TOTAL-REVENUES] 475,118
[CGS] 242,457
[TOTAL-COSTS] 242,457
[OTHER-EXPENSES] 0
[LOSS-PROVISION] 1,467
[INTEREST-EXPENSE] 353
[INCOME-PRETAX] 87,207
[INCOME-TAX] 35,563
[INCOME-CONTINUING] 51,644
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] (623)
[NET-INCOME] 51,021
[EPS-PRIMARY] 2.17
[EPS-DILUTED] 2.17
</TABLE>
Form 10-K
For the fiscal year ended Commission File No. 1-6832
January 1, 1995
BIC CORPORATION
EXHIBIT INDEX
-------------
Exhibit No.
-----------
3. a. Restated Certificate of Incorporation, as
filed May 5, 1993. (1)
b. By-Laws, as amended. (2)
4. Instruments relating to long-term debt are
not filed, but the Registrant agrees to file a copy of such
instruments upon request of the Securities and Exchange
Commission.
9. a. Voting Trust Agreement, dated February 5,
1991, by and among Societe BIC, S.A., Marcel L. Bich, Neil
A. Pollio, Bruno Bich, Francois Bich and BIC Corporation, as
amended February 3, 1992, for the purpose of naming
Alexander Alexiades as successor voting trustee. (3)
b. Amendment to Voting Trust Agreement, dated
July 5, 1993. (1)
10. a. Selected Executive Retirement Plan, as
amended. (1)
b. Agreement, dated July 1, 1971, including
amendments, between Societe BIC, S.A. and BIC Pen
Corporation. (3)
21. Subsidiaries of the Registrant.
23. Consent of Independent Auditors.
___________________________________
(1) Incorporated by reference to the Corporation's Annual
Report on Form 10-K for its fiscal year ended January
2, 1994.
(2) Incorporated by reference to the Corporation's Annual
Report on Form 10-K for its fiscal year ended January
3, 1993.
(3) Incorporated by reference to the Corporation's Annual
Report on Form 10-K for its fiscal year ended December
30, 1990.
