<PAGE>
COMMISSION FILE NUMBER 1-5881
-----------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K/A
AMENDMENT TO APPLICATION OR REPORT
FILED PURSUANT TO SECTION 12, 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
BROWN & SHARPE MANUFACTURING COMPANY
------------------------------------
(Exact name of registrant as specified in charter)
AMENDMENT NO. 1
The undersigned registrant hereby amends the following items, financial
statement, exhibits or other portions of its Annual Report for the year ended
December 31, 1994, on Form 10-K as set forth in the pages attached hereto:
The Exhibit Index and Exhibits are amended to reflect the addition of
the following:
"Exhibit 28.1 - Annual Report on Form 11-K for The Brown & Sharpe
Savings and Retirement Plan for Management Employees for the year ended December
31, 1994."
"Exhibit 28.2 - Annual Report on Form 11-K for The Brown & Sharpe
Savings and Retirement Plan for the year ended December 31, 1994."
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amendment to be signed on its behalf by the
undersigned, thereunto duly authorized.
Brown & Sharpe Manufacturing Company
By: /s/ Alfred J. Corso
---------------------------------------
Alfred J. Corso
Corporate Controller
(Principal Accounting Officer)
<PAGE>
Exhibit 28.1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 11-K
Annual Report Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
For the Fiscal Year Ended December 31, 1994
-----------------
Commission File Number 1-5881
------
THE BROWN & SHARPE SAVINGS AND RETIREMENT PLAN FOR MANAGEMENT EMPLOYEES
-----------------------------------------------------------------------
(Full Title of the Plan)
BROWN & SHARPE MANUFACTURING COMPANY
200 Frenchtown Road
North Kingstcown, Rhode Island 02852-1700
(401) 886-2000
(Name of Issuer and Address of its Principal Executive Office)
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Plan has duly caused this Annual Report to be signed on its behalf by the
undersigned, thereunto duly authorized, in North Kingstown, Rhode Island, on the
22nd day of June 1995.
BROWN & SHARPE SAVINGS & RETIREMENT
PLAN FOR MANAGEMENT EMPLOYEES
By: /s/ Alfred J. Corso
-------------------
Alfred J. Corso
Controller
(Principal Accounting Officer)
-i-
<PAGE>
BROWN & SHARPE SAVINGS AND RETIREMENT PLAN FOR MANAGEMENT EMPLOYEES
Table of Contents
<TABLE>
<CAPTION>
Page
----
<S> <C>
Report of Ernst & Young LLP, Independent Auditors 1
Financial Statements:
Statements of Net Assets Available for Plan Benefits
at December 31, 1994 and 1993 2
Statements of Changes in Net Assets Available for Plan
Benefits for the Years Ended December 31, 1994 and 1993 2
Notes to Financial Statements 3-10
Supplemental Schedules:
Schedule of Reportable Transactions 11
Schedule of Assets Held for Investment Purposes at December 31, 1994 12-14
Consent of Independent Auditors 15
</TABLE>
<PAGE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
-------------------------------------------------
Brown & Sharpe Savings and Retirement Plan
for Management Employees Committee
Brown & Sharpe Manufacturing Company
We have audited the accompanying statement of net assets available for plan
benefits of the Brown & Sharpe Savings and Retirement Plan for Management
Employees (the "Plan") as of December 31, 1994, and the related statement of
changes in net assets available for plan benefits for the year then ended.
These financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based on
our audit. The financial statements of the Brown & Sharpe Savings and
Retirement Plan for Management Employees for the year ended December 31, 1993,
were audited by other auditors whose report dated May 27, 1994, expressed an
unqualified opinion on those statements.
We conducted our audit 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 audit provides a reasonable basis for our opinion.
In our opinion, the 1994 financial statements referred to above present
fairly, in all material respects, information regarding the Plan's net assets
available for benefits at December 31, 1994, and the changes therein for the
year then ended, in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment purposes as of December 31, 1994, and reportable
transactions for the year then ended, are presented for purposes of complying
with the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974, and are
not a required part of the financial statements. The supplemental schedules have
been subjected to the auditing procedures applied in our audit of the 1994
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the 1994 financial statements taken as a whole.
ERNST & YOUNG LLP
June 16, 1995
-1-
<PAGE>
THE BROWN & SHARPE SAVINGS & RETIREMENT PLAN FOR MANAGEMENT EMPLOYEES
---------------------------------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
---------------------------------------------------
<TABLE>
<CAPTION>
As of December 31,
-------------------------------
1994 1993
---- ----
<S> <C> <C>
Assets:
Investments (Notes 2 and 5) $18,115,193 $19,780,548
Dividends and interest receivable 72,413 94,821
Employer contribution receivable 618,050 539,380
Plan loans receivable 257,669 250,474
----------- -----------
Net Assets Available for Plan Benefits $19,063,325 $20,665,223
=========== ===========
</TABLE>
STATEMENT OF INCOME AND CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the years ended December 31,
---------------------------------
1994 1993
---- ----
<S> <C> <C>
Additions
- ---------
Contributions:
Employer $ 641,425 $ 564,019
Employee 892,263 783,081
----------- -----------
1,533,688 1,347,100
Investment income:
Interest 723,338 911,147
Dividends 93,572 91,770
----------- -----------
816,910 1,002,917
Net appreciation (depreciation)
in fair value of investments (255,446) 1,003,969
----------- -----------
Total additions 2,095,152 3,353,986
Deductions
- ----------
Payments to participants (3,678,814) (2,585,750)
Loan defaults (2,490) (6,281)
Fees (38,014) (10,151)
----------- -----------
Total deductions (3,719,318) (2,602,182)
Transfers
- ---------
From Brown & Sharpe Employee Stock
Ownership & Profit Participation Plan 24,994 9,993
(ESOP)
From (To) Brown & Sharpe Savings
& Retirement Plan (SARP) (2,726) 41,719
----------- -----------
Net transfers 22,268 51,712
----------- -----------
Net (decrease) increase in assets (1,601,898) 803,516
Net assets, beginning of year 20,665,223 19,861,707
----------- -----------
Net assets, end of year $19,063,325 $20,665,223
=========== ===========
</TABLE>
See notes to the financial statements.
-2-
<PAGE>
THE BROWN & SHARPE SAVINGS & RETIREMENT PLAN FOR MANAGEMENT EMPLOYEES
---------------------------------------------------------------------
Notes To Financial Statements
-----------------------------
1. Plan Description
- --------------------
The following description of The Brown & Sharpe Savings and Retirement Plan
for Management Employees (the "Plan") provides only general information.
Participants should refer to the Summary Plan Description for more complete
details.
General
-------
The Plan is a defined contribution plan covering all eligible full-time
salaried employees of Brown & Sharpe Manufacturing Company (the "Company")
and its affiliated companies who participate in the Plan. Such employees are
immediately eligible to make deferred salary contributions to the Plan. One
year of service is required to become a participant receiving Company
contributions. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA), as amended.
Contributions
-------------
The Plan permits a participant to make deferred salary contributions to
the Plan equal to 2% to 16% of compensation up to a maximum of $9,240 in
1994 and $8,994 in 1993, (indexed in future years) which is not subject to
federal income tax until distributed. Contributions are invested at the
direction of the employee in one or more investment alternatives, or
"Funds," as described below.
The Company may, at the discretion of the Board of Directors, make a
supplemental contribution of 4% of annual compensation plus 4% of the amount
over the Social Security wage base to the account of each participant to be
invested as instructed by the participant. The Company's supplemental
contributions for 1994 and 1993 were $618,050 and $539,380, respectively.
In addition, the Plan provides for a Company contribution, or subsidy,
equal to one-quarter of the amount of each deferred salary contribution
invested directly in the Company Stock Fund. Such Company contributions for
1994 and 1993 were $23,375 and $24,639, respectively.
Participant Accounts
--------------------
A separate account is established for each participant when enrolled in
the Plan. Each participant's account is credited with participant salary
deferrals, Company contributions, and an allocation of earnings of the Funds
in which such participant's account is invested. Allocations, as determined
by a monthly valuation, are credited ratably among all participants in each
Fund.
-3-
<PAGE>
Notes to Financial Statements (continued)
-----------------------------------------
Investments
-----------
Participants direct the trustee to put contributions in one or more of
the following investment alternatives in multiples of 10%:
(1) the Diversified Fund, managed by Frontier Capital Management, Inc.,
consisting primarily of a diversified portfolio of stock and fixed income
securities; (2) the Company Stock Fund, managed by Fleet National Bank,
consisting primarily of Company common stock; (3) the Money Market Fund,
invested by Fleet National Bank through Fidelity Management & Research
Company consisting primarily of obligations of the U.S. Government or its
agencies, banks and business corporations (other than the Company); or (4)
the Guaranteed Interest Fund, consisting primarily of guaranteed investment
contracts issued by American International Life Assurance Company of New
York in 1994, Principal Mutual Life Insurance Company in 1992 and 1993, and
Allstate Life Insurance Company in 1991. These guaranteed investment
contracts are agreements under which the issuer has agreed to pay the
investor a guaranteed rate of interest over terms ranging from 3 to 5 years.
The contracts automatically terminate at maturity date. A penalty is
imposed upon early termination of contract. The issuers of these contracts
are insurance companies, and because of this, the contracts are more
susceptible to factors adversely affecting the insurance industry than
similar contracts issued by parties other than insurance companies.
Transfers between investment funds can be made subject to certain rules.
The Plan assets and those of the Brown & Sharpe Savings and Retirement
Plan are held in a trust administered by Fleet National Bank as Trustee.
The assets and activity within this trust are allocated between the two
plans based on the underlying participant records of each plan.
In years when Company contributions are made, forfeitures are used
first to reduce Company contributions and then to pay Plan expenses. In
1994 and 1993, Plan expenses were paid entirely by the Company.
Benefits
--------
A participant is always vested 100% in deferred salary contributions
and Company stock purchased at a discount and becomes 100% vested in Company
contributions after 3 years of service.
Upon termination of service, participants are eligible to receive the
vested value of their account in a lump sum payment or, if retired, in equal
annual installments over a 10-year period or deferred until a future date no
later than age 70-1/2.
-4-
<PAGE>
Notes to Financial Statements (continued)
-----------------------------------------
While in service, a participant may apply for a hardship withdrawal of
funds subject to restrictive IRS rules and excise tax. The Plan also
permits a participant to borrow against his/her account and repay the loan
by payroll deduction.
Plan participants who are no longer employees of the Company but who
have elected to defer payment of their account balance are assessed an asset
management trust and recordkeeping fee based on actual cost. These
participant account balances amount to $2,429,044 at December 31, 1994.
2. Summary of Significant Accounting Policies
------------------------------------------
Investments, other than insurance contracts, are stated at fair value.
Investments in securities traded on a national securities exchange are valued at
the last reported sales price on the last business day of the year. Listed
securities and governmental obligations for which no sale was reported on that
date are valued at the last reported bid price. Investments in guaranteed
interest contracts with insurance companies are stated at contract value defined
as cost plus accrued interest less distributions to date. Purchases and sales
of securities are reflected on a trade-date basis. The Plan presents in the
statements of changes in net assets the net appreciation (depreciation) in the
fair value of its investments which consists of the realized gains or losses and
the unrealized appreciation (depreciation) on those investments. Dividend
income is accrued on the ex-dividend date. Income from other investments is
recorded as earned on an accrual basis.
3. Tax Status
----------
The Plan has received a favorable determination letter from the IRS (dated
May 9, 1995). This favorable determination by the IRS does apply on a
retroactive basis to periods including the financial statement date.
4. Plan Termination
----------------
The Company adopted this Plan with a view to maintaining it permanently.
However, the Company reserves the right to modify or amend the Plan from time to
time, or to terminate the Plan, and to discontinue making contributions
temporarily or permanently depending upon business and economic conditions. The
Company cannot amend the Plan so as to deprive any participant of benefits
already accrued under the Plan at the time of amendment, nor can the Company
take back any contributions which it has made to the Plan except in limited
circumstances involving factual error or contributions thought to be deductible
which are not deductible. Should the Plan terminate, accounts would become
fully vested, regardless of years of service, and would be paid to participants
as directed by the Committee administering the Plan.
-5-
<PAGE>
Notes to Financial Statements (continued)
-----------------------------------------
5. Investments
- ---------------
Investments held at December 31, 1994 and 1993 are as follows:
<TABLE>
<CAPTION>
Description Current Value Cost
- ----------- ------------- ----
1994 1993 1994 1993
---- ---- ---- ----
<S> <C> <C> <C> <C>
Investments stated at fair value:
Company common stock $ 1,109,342 $ 1,359,262 $ 1,630,513 $ 1,734,196
Diversified investments:
Government securities 397,155 452,826 394,104 402,379
Common & preferred stock 6,225,859 5,780,562 5,396,028 4,561,910
Short-term investments (1) 919,677 998,347 919,677 998,347
Investments stated at contract value:
Guaranteed interest contracts 9,463,160 11,189,551 9,463,160 11,189,551
----------- ----------- ----------- -----------
Total investments $18,115,193 $19,780,548 $17,803,482 $18,886,383
=========== =========== =========== ===========
</TABLE>
(1) Short-term investments include temporary investments made within each of
the available Funds.
The following investments exceed 5% of Plan assets at December 31, 1994:
<TABLE>
<CAPTION>
Current Value
-------------
<S> <C>
Investments stated at contract value:
1991 GIC Allstate Life Insurance Company $1,073,142
Contract #GA5052
1993 GIC Principal Mutual Life Insurance 6,525,546
Contract #GA88705-3
1994 GIC American International Life 1,021,841
Assurance Company
Contract #18181
Investments stated at fair value:
167,488 shares Brown & Sharpe Manufacturing 1,109,342
Company Common Stock Class A & B
The following investments exceed 5% of Plan assets at December 31, 1993:
Current Value
-------------
<S> <C>
Investments stated at contract value:
1989 GIC Aetna Benefit Accumulation $1,945,146
Contract #LT-10439
1991 GIC Allstate Life Insurance Company 1,078,676
Contract #GA5052
1993 GIC Principal Mutual Life Insurance 7,305,208
Contract #GA88705-3
Investments stated at fair value:
178,264 shares Brown & Sharpe Manufacturing 1,359,262
Company Common Stock Class A & B
</TABLE>
-6-
<PAGE>
Notes to Financial Statements (continued)
-----------------------------------------
6. Allocation of Statements of Net Assets Available for Plan Benefits and
----------------------------------------------------------------------
Statements of Income and Changes in Net Assets Available for Plan Benefits
--------------------------------------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS AT DECEMBER 31, 1994, WITH
- ------------------------------------------------------------------------------
FUND INFORMATION
----------------
<TABLE>
<CAPTION>
Money Diversified/(1)/ Company/(1)/ Guaranteed/(1)/
Plan Loans Market Fund Fund Stock Fund Interest Fund Total
---------- ----------- ---- ---------- ------------- -----
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments $ - $455,255 $6,995,173 $1,148,856 $9,515,909 $18,115,193
Dividends and interest - 15 18,199 102 54,097 72,413
receivable
Employer contribution - 71,358 302,084 20,236 224,372 618,050
receivable
Plan loans receivable 257,669 - - - - 257,669
-------- -------- ---------- ---------- ---------- -----------
Net Assets Available for
Plan Benefits $257,669 $526,628 $7,315,456 $1,169,194 $9,794,378 $19,063,325
======== ======== ========== ========== ========== ===========
</TABLE>
(1) Includes short-term investments of $372,159 in the Diversified Fund,
$39,514 in the Company Stock Fund, and $52,749 in the Guaranteed Interest
Fund.
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS AT DECEMBER 31, 1993, WITH
------------------------------------------------------------------------------
FUND INFORMATION
----------------
<TABLE>
<CAPTION>
Money Diversified/(2)/ Company/(2)/ Guaranteed
Plan Loans Market Fund Fund Stock Fund Interest Fund Total
---------- ----------- ---- ---------- ------------- -----
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments $ - $555,089 $6,657,315 $1,378,593 $11,189,551 $19,780,548
Dividends and interest - 1,414 25,428 38 67,941 94,821
receivable
Employer contribution - 36,698 334,647 13,457 154,578 539,380
receivable
Plan loans receivable 250,474 - - - - 250,474
-------- -------- ---------- ---------- ----------- -----------
Net Assets Available for
Plan Benefits $250,474 $593,201 $7,017,390 $1,392,088 $11,412,070 $20,665,223
======== ======== ========== ========== =========== ===========
</TABLE>
(2) Includes short-term investments of $423,927 in the Diversified Fund and
$19,331 in the Company Stock Fund.
-7-
<PAGE>
Notes to Financial Statements (continued)
-----------------------------------------
6. Allocation of Statements of Net Assets Available for Plan Benefits and
----------------------------------------------------------------------
Statements of Income and Changes in Net Assets Available for Plan Benefit
-------------------------------------------------------------------------
(continued)
-----------
STATEMENT OF INCOME AND CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS FOR
-----------------------------------------------------------------------------
THE YEAR ENDED DECEMBER 31, 1994, WITH FUND INFORMATION
-------------------------------------------------------
<TABLE>
<CAPTION>
Money Diversified Company Guaranteed
Plan Loans Market Fund Fund Stock Fund Interest Fund Total
---------- ----------- ---- ---------- ------------- -----
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employer $ - $ 71,358 $ 302,084 $ 43,611 $ 224,372 $ 641,425
Employee - 34,170 481,534 96,049 280,510 892,263
Loan repayments (101,915) 7,014 46,441 9,235 39,225 -
--------- --------- ----------- ---------- ----------- -----------
(101,915) 112,542 830,059 148,895 544,107 1,533,688
Investment income:
Interest - 16,824 66,312 2,173 638,029 723,338
Dividends - - 93,572 - - 93,572
--------- --------- ----------- ---------- ----------- -----------
- 16,824 159,884 2,173 638,029 816,910
Net depreciation
in fair value of - - (80,279) (175,167) - (255,446)
investments --------- --------- ----------- ---------- ----------- -----------
Total income (101,915) 129,366 909,664 (24,099) 1,182,136 2,095,152
Disbursements
Payments to participants - (144,510) (1,837,684) (93,826) (1,602,794) (3,678,814)
Loans to participants 111,600 (1,818) (88,563) (629) (20,590) 0
Loan defaults (2,490) - - - - (2,490)
Fees - (384) (24,486) (6,995) (6,149) (38,014)
--------- --------- ----------- ---------- ----------- -----------
Total disbursements 109,110 (146,712) (1,950,733) (101,450) (1,629,533) (3,719,318)
Transfers
Transfers from ESOP - 6,026 17,468 - 1,500 24,994
Transfers from (to) SARP - - 2,666 (5,850) 458 (2,726)
Transfers between funds - (55,253) 1,319,001 (91,495) (1,172,253) -
--------- --------- ----------- ---------- ----------- -----------
Net transfers - (49,227) 1,339,135 (97,345) (1,170,295) 22,268
--------- --------- ----------- ---------- ----------- -----------
Net increase (decrease) 7,195 (66,573) 298,066 (222,894) (1,617,692) (1,601,898)
Net assets, beginning of year 250,474 593,201 7,017,390 1,392,088 11,412,070 20,665,223
--------- --------- ----------- ------------ ----------- -----------
Net assets, end of year $ 257,669 $ 526,628 $ 7,315,456 $ 1,169,194 $ 9,794,378 $19,063,325
========= ========= =========== ============ =========== ===========
</TABLE>
-8-
<PAGE>
Notes to Financial Statements (continued)
-----------------------------------------
6. Allocation of Statements of Net Assets Available for Plan Benefits and
----------------------------------------------------------------------
Statements of Income and Changes in Net Assets Available for Plan Benefit
-------------------------------------------------------------------------
(continued)
-----------
STATEMENT OF INCOME AND CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS FOR
-----------------------------------------------------------------------------
THE YEAR ENDED DECEMBER 31, 1993, WITH FUND INFORMATION
-------------------------------------------------------
<TABLE>
<CAPTION>
Money Diversified Company Guaranteed
Plan Loans Market Fund Fund Stock Fund Interest Fund Total
---------- ----------- ---- ---------- ------------- -----
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employer $ - $36,698 $334,647 $38,096 $154,578 $ 564,019
Employee - 31,370 364,706 98,427 288,578 783,081
Loan repayments (91,835) 6,290 44,514 9,995 31,036 -
--------- -------- ---------- ---------- ----------- -----------
(91,835) 74,358 743,867 146,518 474,192 1,347,100
Investment income:
Interest - 13,349 79,592 2,975 815,231 911,147
Dividends - - 91,770 - - 91,770
-------- -------- ---------- ---------- ----------- -----------
- 13,349 171,362 2,975 815,231 1,002,917
Net appreciation
in fair value of - - 826,381 177,588 - 1,003,969
investments -------- -------- ---------- ---------- ----------- -----------
Total income (91,835) 87,707 1,741,610 327,081 1,289,423 3,353,986
Disbursements
Payments to - (53,150) (412,427) (204,414) (1,915,759) (2,585,750)
participants
Loans to participants 83,862 (8,443) (33,884) (18,496) (23,039) -
Loan defaults (6,281) - - - - (6,281)
Fees - (62) (8,140) 6,134 (8,083) (10,151)
-------- -------- ---------- ---------- ----------- -----------
Total disbursements 77,581 (61,655) (454,451) (216,776) (1,946,881) (2,602,182)
Transfers
Transfers from ESOP - - 9,495 - 498 9,993
Transfers from (to) SARP - 216 176 294 41,033 41,719
Transfers between funds - 164,531 875,369 (33,803) (1,006,097) -
-------- ---------- ---------- ---------- ----------- -----------
Net transfers - 164,747 885,040 (33,509) (964,566) 51,712
--------- ---------- ---------- ---------- ----------- -----------
Net increase (decrease) (14,254) 190,799 2,172,199 76,796 (1,622,024) 803,516
Net assets, beginning of year 264,728 402,403 4,845,191 1,315,292 13,034,093 19,861,707
--------- ---------- ---------- ---------- ----------- -----------
Net assets, end of year $ 250,474 $ 593,201 $7,017,390 $1,392,088 $11,412,070 $20,665,223
========= ========== ========== ========== =========== ===========
</TABLE>
-9-
<PAGE>
Notes to Financial Statements (continued)
-----------------------------------------
7. Transactions with Parties-In-Interest
-------------------------------------
During the years ended December 31, 1994 and 1993, the Plan entered into the
following transactions with parties-in-interest:
<TABLE>
<CAPTION>
December 31
------------------------------------------
1994 1993
------------------------- ---------------------------
Units/Shares Amount Units/Shares Amount
------------ ------ ------------ ------
Fleet National Bank Money Market Fund:
- --------------------------------------
<S> <C> <C> <C> <C>
Purchases of face amount -- $12,270,546 -- $16,006,835
Sales of face amount -- 12,276,465 -- 16,171,346
Investment income -- 19,070 -- 22,698
Brown & Sharpe Manufacturing Company Class A
- --------------------------------------------
Purchases of capital stock -- $ -- 12,235 $ 105,706
Distributions of capital stock to participants -- -- 17,353 166,748
Sales of capital stock, at market value 10,635 73,711 -- --
</TABLE>
-10-
<PAGE>
BROWN & SHARPE SAVINGS & RETIREMENT PLAN FOR MANAGEMENT EMPLOYEES
SCHEDULE OF REPORTABLE TRANSACTIONS
For the Year Ended December 31, 1994
------------------------------------
<TABLE>
<CAPTION>
PURCHASE PRICE
--------------
IDENTITY OF PARTY INVOLVED DESCRIPTION OF ASSETS SELLING PRICE
--------------------------- --------------------- -------------
Category (i) A single transaction in excess of 5% of plan assets
- ------------------------------------------------------------------
<S> <C> <C> <C>
Aetna Life Insurance Company Aetna Capital
GIC Lt. 10439
Sold $1,945,146 face amount $ -- $ 1,945,146
Fleet National Bank* Fleet Money Market
Purchased $1,961,681 face amount 1,961,681 --
Purchased $1,274,329 face amount 1,274,329 --
Sold $1,283,560 face amount -- 1,283,560
Sold $1,274,329 face amount -- 1,274,329
Sold $1,274,329 face amount -- 1,274,329
Purchased $1,257,682 face amount 1,257,682 --
<CAPTION>
Category (iii) A series of securities transactions in excess of 5% of plan assets
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
Fleet National Bank* Fleet Money Market Purchased
$12,270,546 face amount in 278 transactions $12,270,546 $ --
Sold $12,276,465 face amount in 171 transactions -- 12,276,465
American International Life A1 Life GIC #18181 5.12%, due 12/31/98
Assurance Company of New York Purchased $1,021,841 face amount in 17 transactions 1,021,841 --
Principal Mutual Life Principal Mutual GIC 88705-3, 6.38%,
Insurance Company 12/31/95, 98, & 97
Sold $1,213,816 face amount in 9 transactions -- 1,213,816
<CAPTION>
CURRENT VALUE OF ASSET
----------------------
COST OF ASSET ON TRANSACTION DATE
------------- -------------------
IDENTITY OF PARTY INVOLVED NET GAIN
--------------------------- --------
<S> <C> <C> <C>
Category (i) A single transaction in excess of 5% of plan assets
- ------------------------------------------------------------------
Aetna Life Insurance Company
$ 1,945,146 $ 1,945,146 $ --
Fleet National Bank*
1,961,681 1,961,681 --
1,274,329 1,274,329 --
1,283,560 1,283,560 --
1,274,329 1,274,329 --
1,274,329 1,274,329 --
1,257,682 1,257,682 --
Category (iii) A series of securities transactions in excess
- --------------------------------------------------------------
of 5% of plan assets
- --------------------
Fleet National Bank* $
$12,270,546 $12,270,546 --
12,276,465 12,276,465 --
American International Life
Assurance Company of New York
1,021,841 1,021,841 --
Principal Mutual Life
Insurance Company
1,213,816 1,213,816 --
</TABLE>
There were no category (ii) or (iv) reportable transactions during 1994.
*Indicates party-in-interest to the Plan.
<PAGE>
BROWN & SHARPE SAVINGS & RETIREMENT PLAN FOR MANAGEMENT EMPLOYEES
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT DECEMBER 31, 1994
<TABLE>
<CAPTION>
SHARES OR CURRENT COST
FACE VALUE DESCRIPTION VALUE OF INVESTMENT
===========================================================================================================
MONEY MARKET FUND
Short-Term Investments
<S> <C> <C> <C> <C>
6,928 Fleet Money Market $ 6,928 $ 6,928
448,327 Fidelity Retirement Mny Mkt Prt 630 448,327 448,327
------------- ---------------
Total Money Market Fund $ 455,255 $ 455,255
DIVERSIFIED FUND
Short-Term Investments
372,159 Fleet Money Market $ 372,159 $ 372,159
Government Securities
291,628 US Treas Notes 8.625% due 8/15/97 297,143 283,910
83,322 US Treas Bonds 11.125% due 8/15/03 100,013 110,194
------------- ---------------
Total Government Securities 397,155 394,104
Preferred Equities
1,000 Chrysler Corp Dep shs Repstg 1/4 PFD 137,107 49,993
833 Ford Mtr Co. Del Dep shs Repstg PFD A 76,656 81,747
------------- ---------------
Total Preferred Equities 213,763 131,741
Common Equities
2,500 Advanta Corp Cl B com 63,117 52,493
3,833 Airtouch Communications Inc. 111,631 85,300
2,083 Alco Std Corp Com 130,712 109,881
2,500 Allied Group Inccomstk 61,867 69,834
1,250 Altera Corp 52,337 35,500
625 Amer Internationsl Group Inc. Com 61,242 39,160
2,500 Applebees Intl Inc. 33,433 36,148
2,500 Applied Mterials Inc. 105,611 123,759
2,500 Aps Hldg Corp 70,616 38,745
3,750 Atmel Corp 125,608 83,613
4,166 Baker Inc. 62,492 83,478
4,166 Barnes & Noble Inc. 130,191 118,734
4,166 Brinker Intl Inc. 75,511 91,551
833 Cabletron Sys Inc.Com 38,745 39,141
3,333 Ceridian Corp 89,571 62,531
2,083 Citicorp Com 86,186 76,961
833 Coastal Healthcare Group Inc. Com 22,809 24,997
833 Compuware Corp 29,996 28,499
1,250 Cordis Corp 75,615 58,698
1,666 Covenant Trans Inc Cla A Com 32,496 33,531
2,351 D R Horton Inc. 21,456 31,622
1,666 Danaher Corp 87,072 63,165
3,333 Danka Business Sys Plc Adr 72,074 71,830
4,166 Dovatron Intl Inc. 107,277 82,020
2,916 EMC Corp Mass 64,068 58,639
417 First USA Inc 13,696 14,819
5,833 Ford Mtr Co Del 162,583 179,125
1,666 General Elec Co Com 84,989 87,398
1,666 Healthsource Inc 68,116 70,264
4,999 Healthtrust Inc-The Hospital Co 158,729 87,694
2,500 Healthwise Amer Inc Co. 82,489 47,494
1,666 Hewlett Packard Co Com 166,436 108,888
</TABLE>
-12-
<PAGE>
BROWN & SHARPE SAVINGS & RETIREMENT PLAN FOR MANAGEMENT EMPLOYEES
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT DECEMBER 31, 1994
<TABLE>
<CAPTION>
SHARES OR CURRENT COST
FACE VALUE DESCRIPTION VALUE OF INVESTMENT
===========================================================================================================
<S> <C> <C> <C> <C>
2,083 Home Depot Inc. 95,821 92,599
833 Homedco Group Inc. 31,350 31,246
4,166 Humana Inc 94,258 82,572
1,666 Huntco Inc. 36,662 39,119
1,666 Idex Corp 70,407 41,744
2,250 Inland Steel Company 79,021 79,511
1,666 Integrated Health Sves 65,825 40,484
2,500 Intel Corp com 159,666 78,328
2,916 Kellwood Co 61,242 52,491
1,250 Lam Research Corporation 46,556 48,067
2,083 Landstar Sys Inc Com 68,220 63,117
8,332 Libbey Inc. 145,814 132,847
1,666 Lincare Hldgs Inc. 48,327 44,463
833 Mariner Health Group Inc. 18,018 18,331
3,490 Mark IV Inds Inc. 68,935 38,940
833 Microsoft Corp 50,931 50,367
6,249 Mid Atlantic Med Svcs Inc 142,950 118,508
2,083 Motorola Inc. Com 120,817 91,252
1,666 Nationsbank Corp 75,198 77,991
1,666 Norwest Corp 38,953 41,715
2,500 Noven Pharmaceuticals Inc. 30,933 37,929
3,333 Officemax Inc Com 88,322 75,634
2,166 Ornda Healthcorp Com Stk 27,080 32,200
2,000 Parametric Technology Corp Com 68,991 71,892
2,500 Phsician Corp of Amer 51,243 68,533
1,666 Physicians Health Svcs Inc 45,411 38,785
2,500 Quantum Health Res Inc 71,865 91,315
4,166 Quorum Health Group Inc Com Stk 79,156 65,313
4,166 Reliance Stl & Alum Co Com 52,597 61,618
2,916 Roper Inds Inc New 73,636 84,586
2,500 Scherer R P Corp Del 113,422 93,165
1,666 Sealed Air corp Com 60,409 53,131
2,500 Sensormatic Electronics Com 89,988 83,081
2,416 Silicon Graphics Inc. 75,284 76,433
1,666 Solectron Corp 45,827 44,458
2,500 Southwest Airlaines Common 41,869 56,945
3,750 Sports & Rec Inc 96,550 78,979
2,916 Sun Healthcare Group Inc 74,001 58,475
1,666 TCF Finl Corp 68,741 67,931
2,416 Teradyne Common 81,854 58,420
3,333 Tower Automotive Inc com 29,996 40,082
2,083 Tractor Supply Co Com 43,744 50,150
5,499 US Can Corp 104,486 88,092
2,500 US Xpress Enterprises Inc. Com 28,746 36,366
3,750 United Healthcare Corp 169,196 93,374
833 Value Health Inc 31,038 27,867
2,500 Wellcare Mgmt Group Inc 61,242 53,105
2,500 Wescast Inds Inc Com 23,122 27,496
2,500 West one Bancorp 66,241 52,493
833 Xilinx Inc 49,364 37,235
-------------- ---------------
Total Common Equities 6,013,096 5,264,287
Total Diversified Fund $ 6,995,173 $ 6,162,291
============== ===============
</TABLE>
-13-
<PAGE>
BROWN & SHARPE SAVINGS & RETIREMENT PLAN FOR MANAGEMENT EMPLOYEES
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT DECEMBER 31, 1994
<TABLE>
<CAPTION>
SHARES OR CURRENT COST
FACE VALUE DESCRIPTION VALUE OF INVESTMENT
===========================================================================================================
<S> <C> <C> <C>
COMPANY STOCK FUND
Short-Term Investments
39,514 Fleet Money Market $ 39,514 $ 39,514
Company Comm
42,984 Brown & Sharpe Mfg Co Cl B $ 284,770 $ 437,659
124,464 Brown & Sharpe Mfg Co Cl A 824,572 1,192,854
-------------- ---------------
Total Company Common Stock $ 1,109,342 $ 1,630,513
Total Company Stock Fund $ 1,148,856 $ 1,670,027
============== ===============
Guaranteed Interest Contracts
Blended GIC 52749 Fleet Money Market $ 52,749 $ 52,749
A I Life GIC #18181 5.12% due 12/31/98 1,021,841 1,021,841
Prin Mut GIC #88705-3 6.38% due 12/31/97 6,525,546 6,525,546
-------------- ---------------
Total Blended GIC $ 7,600,136 $ 7,600,136
1992 GIC Prin Mut GIC 6.80% due 12/31/96 $ 842,631 $ 842,631
1991 GIC Allstate Life Ins. Gic 8.60% due 04/01/96 $ 1,073,142 $ 1,073,142
-------------- ---------------
TOTAL GUARANTEED INTEREST CONTRACTS $ 9,515,909 $ 9,515,909
============== ===============
TOTAL INVESTMENTS $ 18,115,193 $ 17,803,482
============== ===============
PLAN LOANS RECEIVABLE $ 257,669 $ 257,669
-------------- ---------------
TOTAL ASSETS HELD FOR INVESTMENTS $ 18,372,862 $ 18,061,151
============== ===============
</TABLE>
-14-
<PAGE>
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statements
(Form S-8 Nos. 2-33676, 2-56621, 2-60398, 2-77219, 2-77575, 2-83637, 2-
97935, 33-17831, 33-23601, 33-23603, 33-30927, and 33-54496) of Brown &
Sharpe Manufacturing Company of our report dated June 16, 1995, with
respect to the financial statements and schedules of the Brown & Sharpe
Savings and Retirement Plan for Management Employees included in this
Annual Report (Form 11-K) for the year ended December 31, 1994.
ERNST & YOUNG LLP
Providence, Rhode Island
June 21, 1995
-15-
<PAGE>
Exhibit 28.2
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 11-K
Annual Report Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
For the Fiscal Year Ended December 31, 1994
-----------------
Commission File Number 1-5881
------
THE BROWN & SHARPE SAVINGS AND RETIREMENT PLAN
----------------------------------------------
(Full Title of the Plan)
BROWN & SHARPE MANUFACTURING COMPANY
200 Frenchtown Road
North Kingstown, Rhode Island 02852-1700
(401) 886-2000
(Name of Issuer and Address of its Principal Executive Office)
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Plan has duly caused this Annual Report to be signed on its behalf by the
undersigned, thereunto duly authorized, in North Kingstown, Rhode Island, on the
22nd day of June, 1995.
BROWN & SHARPE SAVINGS & RETIREMENT PLAN
By: /s/ Alfred J. Corso
-------------------
Alfred J. Corso
Controller
(Principal Accounting Officer)
-i-
<PAGE>
THE BROWN & SHARPE SAVINGS AND RETIREMENT PLAN
Table of Contents
<TABLE>
<CAPTION>
Page
----
<S> <C>
Report of Ernst & Young LLP, Independent Auditors 1
Financial Statements:
Statements of Net Assets Available for Plan Benefits
at December 31, 1994 and 1993 2
Statements of Changes in Net Assets Available for Plan
Benefits for the Years Ended December 31, 1994 and 1993 2
Notes to Financial Statements 3-10
Supplemental Schedules:
Schedule of Reportable Transactions 11
Schedule of Assets Held for Investment Purposes
at December 31, 1994 12-14
Consent of Independent Auditors 15
</TABLE>
<PAGE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
-------------------------------------------------
Brown & Sharpe Savings and Retirement Plan Committee
Brown & Sharpe Manufacturing Company
We have audited the accompanying statement of net assets available for
plan benefits of the Brown & Sharpe Savings and Retirement Plan (the "Plan") as
of December 31, 1994, and the related statement of changes in net assets
available for plan benefits for the year then ended. These financial statements
are the responsibility of the Plan's management. Our responsibility is to
express an opinion on these financial statements based on our audit. The
financial statements of the Brown & Sharpe Savings and Retirement Plan for the
year ended December 31, 1993, were audited by other auditors whose report dated
May 27, 1994, expressed an unqualified opinion on those statements.
We conducted our audit 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 audit provides a reasonable basis for our opinion.
In our opinion, the 1994 financial statements referred to above present
fairly, in all material respects, information regarding the Plan's net assets
available for benefits at December 31, 1994, and the changes therein for the
year then ended, in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment purposes as of December 31, 1994, and reportable
transactions for the year then ended, are presented for purposes of complying
with the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974, and are
not a required part of the financial statements. The supplemental schedules have
been subjected to the auditing procedures applied in our audit of the 1994
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the 1994 financial statements taken as a whole.
ERNST & YOUNG LLP
June 16, 1995
-1-
<PAGE>
THE BROWN & SHARPE SAVINGS & RETIREMENT PLAN
--------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
---------------------------------------------------
<TABLE>
<CAPTION>
As of December 31,
----------------------
1994 1993
---- ----
<S> <C> <C>
Assets:
Investments (Notes 2 and 5) $5,132,173 $5,277,880
Dividends and interest receivable 22,560 26,538
Employer contributions receivable 174,679 165,820
Plan loans receivable 69,241 66,932
---------- ----------
Net Assets Available for Plan Benefits $5,398,653 $5,537,170
========== ==========
</TABLE>
STATEMENT OF INCOME AND CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
-------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the years ended December 31,
-----------------------------------
1994 1993
---- ----
<S> <C> <C>
Additions
- ---------
Contributions:
Employer $ 180,795 $ 173,178
Employee 234,428 209,797
---------- ----------
415,223 382,975
Investment income:
Interest 221,076 276,568
Dividends 16,649 16,366
---------- ----------
237,725 292,934
Net appreciation (depreciation)
in the fair value of investments (53,660) 190,082
---------- ----------
Total aditions 599,288 865,991
Deductions
- ----------
Payments to participants (735,565) (552,798)
Loan defaults (3,595) -
Fees (5,071) (7,673)
---------- ----------
Total deductions (744,231) (560,471)
Transfers
- ---------
From Brown & Sharpe Employee Stock Owner-
ship & Profit Participation Plan (ESOP) 3,700 12,346
From (To) Brown & Sharpe Savings & Retire-
ment Plan for Mgmt. Employees (SARPM) 2,726 (41,719)
---------- ----------
Net transfers 6,426 (29,373)
---------- ----------
Net (decrease) increase in assets (138,517) 276,147
Net assets, beginning of year 5,537,170 5,261,023
---------- ----------
Net assets, end of year $5,398,653 $5,537,170
========== ==========
</TABLE>
See notes to the financial statements
-2-
<PAGE>
THE BROWN & SHARPE SAVINGS & RETIREMENT PLAN
--------------------------------------------
Notes To Financial Statements
-----------------------------
1. Plan Description
- --------------------
The following description of the Brown & Sharpe Savings and Retirement
Plan (the "Plan") provides only general information. Participants should refer
to the Summary Plan Description for more complete details.
General
-------
The Plan, which began on October 1, 1987, is a defined contribution
plan covering all eligible full-time employees covered by a collective
bargaining agreement of Brown & Sharpe Manufacturing Company (the
"Company") and its affiliated companies who participate in the Plan. Such
employees are immediately eligible to make deferred salary contributions to
the Plan. One year of service is required to become a participant receiving
Company contributions. The Plan is subject to the provisions of the
Employee Retirement Income Security Act of 1974 (ERISA) as amended.
Contributions
-------------
The Plan permits a participant to make deferred salary contributions
to the Plan equal to 2% to 16% of compensation up to a maximum of $9,240 in
1994 and $8,994 in 1993 (indexed in future years) which is not subject to
federal income tax until distributed. Contributions are invested at the
direction of the employee in one or more investment alternatives, or
"Funds," as described below.
The Company may, at the discretion of the Board of Directors, make a
supplemental contribution of 4% of annual compensation plus 4% of the
amount over the Social Security wage base to the account of each
participant to be invested as instructed by the participant. The Company's
supplemental contributions for 1994 and 1993 were $174,678 and $165,820
respectively.
In addition, the Plan provides for a Company contribution, or
subsidy, equal to one-quarter of the amount of each deferred salary
contribution invested directly in the Company Stock Fund. Such Company
contributions for 1994 and 1993 were $6,117 and $7,358, respectively.
Participant Accounts
--------------------
A separate account is established for each participant when enrolled
in the Plan. Each participant's account is credited with participant salary
deferrals, Company contributions, and an allocation of earnings of the
Funds in which such participant's account is invested. Allocations, as
determined by a monthly valuation, are credited ratably among all
participants in each Fund.
-3-
<PAGE>
Notes to Financial Statements (continued)
-----------------------------------------
Investments
-----------
Participants direct the trustee to put contributions in one or more
of the following investment alternatives in multiples of 10%:
(1) the Diversified Fund, managed by Frontier Capital Management, Inc.,
consisting primarily of a diversified portfolio of stock and fixed income
securities; (2) the Company Stock Fund, managed by Fleet National Bank,
consisting primarily of Company common stock and cash; (3) the Money Market
Fund, invested by Fleet National Bank through Fidelity Management &
Research Company, consisting primarily of obligations of the U.S.
Government or its agencies, banks and business corporations (other than the
Company); or (4) the Guaranteed Interest Fund, consisting primarily of
guaranteed investment contracts issued by American International Life
Assurance Company of New York in 1994, Principal Mutual Life Insurance
Company in 1993 and 1992, and Allstate Life Insurance Company in 1991.
These guaranteed investment contracts are agreements under which the issuer
has agreed to pay the investor a guaranteed rate of interest over terms
ranging from 3 to 5 years. The contracts automatically terminate at
maturity date. A penalty is imposed upon early termination of contract. The
issuers of these contracts are insurance companies, and because of this,
the contracts are more susceptible to factors adversely affecting the
insurance industry than similar contracts issued by parties other than
insurance companies. Transfers between investment funds can be made subject
to certain rules.
The Plan assets, and those of the Brown & Sharpe Savings and
Retirement Plan for Management Employees are held in a trust administered
by Fleet Bank as Trustee. The assets and activity within this trust are
allocated between the two plans based on the underlying participant records
of each plan.
In years when Company contributions are made, forfeitures are used
first to reduce Company contributions and then to pay Plan expenses. In
1994 and 1993, Plan expenses were paid entirely by the Company.
Benefits
--------
A participant is always vested 100% in deferred salary contributions
and Company stock purchased at a discount and becomes 100% vested in
Company contributions after 3 years of service.
Upon termination of service, participants are eligible to receive the
vested value of their account in a lump sum payment or, if retired, in
equal annual installments over a 10-year period or deferred until a future
date no later than age 70-1/2.
While in service, a participant may apply for a hardship withdrawal
of funds subject to restrictive IRS rules and excise tax. The Plan also
permits a participant to borrow against his/her account and repay the loan
by payroll deduction.
-4-
<PAGE>
Notes to Financial Statements (continued)
-----------------------------------------
Plan participants who are no longer employees of the Company but who
have elected to defer payment of their account balance are assessed an
asset management trust and recordkeeping fee based on actual cost. These
participant account balances amount to $2,123,277 at December 31, 1994.
2. Summary of Significant Accounting Policies
- ----------------------------------------------
Investments, other than insurance contracts, are stated at fair value.
Investments in securities traded on a national securities exchange are valued at
the last reported sales price on the last business day of the year. Listed
securities and governmental obligations for which no sale was reported on that
date are valued at the last reported bid price. Investments in guaranteed
interest contracts with insurance companies are stated at contract value
determined as cost plus accrued interest, less distributions to date.
Purchases and sales of securities are reflected on a trade-date basis. The
Plan presents in the statements of changes in net assets the net appreciation
(depreciation) in the fair value of its investments which consists of the
realized gains or losses and the unrealized appreciation (depreciation) on those
investments. Dividend income is accrued on the ex-dividend date. Income from
other investments is recorded as earned on an accrual basis.
3. Tax Status
- --------------
The Plan has received a favorable determination letter from the IRS (dated
April 11, 1995). This favorable determination by the IRS does apply on a
retroactive basis to periods including the financial statement date.
4. Plan Termination
- --------------------
The Company adopted this Plan with a view to maintaining it permanently.
However, the Company reserves the right to modify or amend the Plan from time to
time, or to terminate the Plan, and to discontinue making contributions
temporarily or permanently depending upon business and economic conditions. The
Company cannot amend the Plan so as to deprive any participant of benefits
already accrued under the Plan at the time of amendment, nor can the Company
take back any contributions which it has made to the Plan except in limited
circumstances involving factual error or contributions thought to be deductible
which are not deductible. Should the Plan terminate, accounts would become
fully vested, regardless of years of service, and would be paid to participants
as directed by the Committee administering the Plan.
-5-
<PAGE>
Notes to Financial Statements (Continued)
-----------------------------------------
5. Investments
- ---------------
Investments held at December 31, 1994 and 1993 are as follows:
<TABLE>
<CAPTION>
Description Current Value Cost
- ----------- ------------- ----
1994 1993 1994 1993
---- ---- ---- ----
<S> <C> <C> <C> <C>
Investments stated at fair value:
Company common stock $ 251,883 $ 307,098 $ 370,218 $ 391,807
Diversified investments:
Government securities 79,494 79,461 78,884 70,609
Common & preferred stock 1,246,167 1,014,359 1,080,069 800,509
Short-term investments (1) 245,244 189,284 245,244 189,284
Investments stated at contract
value:
Guaranteed interest contracts 3,309,385 3,687,678 3,309,385 3,687,678
---------- ---------- ---------- ----------
Total investments $5,132,173 $5,277,880 $5,083,800 $5,139,887
========== ========== ========== ==========
</TABLE>
(1) Short-term investments include temporary investments made within each of
the Funds.
The following investments exceed 5% of Plan assets at December 31, 1994:
<TABLE>
<CAPTION>
Current Value
-------------
Investments stated at contract value:
<S> <C> <C>
1991 GIC Allstate Life Insurance Company $ 366,905
Contract #GA5052
1992 GIC Principal Mutual Life Insurance 271,463
Contract #GA88705-02
1993 GIC Principal Mutual Life Insurance 2,309,388
Contract #GA88705-03
Investments stated at fair value:
1994 GIC American International Life Assurance Company 361,629
Contract #18181
</TABLE>
The following investments exceed 5% of Plan assets at December 31, 1993:
<TABLE>
<CAPTION>
Current Value
-------------
Investments stated at contract value:
<S> <C> <C>
1989 GIC Aetna Benefit Accumulation $ 352,342
Contract #LT-10439
1991 GIC Allstate Life Insurance Company 396,815
Contract #GA5052
1992 GIC Principal Mutual Life Insurance 302,370
Contract #GA88705-02
1993 GIC Principal Mutual Life Insurance 2,636,151
Contract #GA88705-03
Investments stated at fair value:
40,275 shares Brown & Sharpe Manufacturing 307,098
Company Common Stock Class A & B
</TABLE>
-6-
<PAGE>
Notes to Financial Statements (continued)
-----------------------------------------
6. Allocation of Statements of Net Assets Available for Plan Benefits and
----------------------------------------------------------------------
Statements of Income and Changes in Net Assets Available for Plan Benefits
--------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS AT DECEMBER 31, 1994, WITH FUND INFORMATION
-----------------------------------------------------------------------------------------------
Money Guaranteed /(1)/
Plan Market Diversified/(1)/ Company/(1)/ Interest
Loans Fund Fund Stock Fund Fund Total
----- ---- ---- ---------- ---- -----
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments $ - $ 143,114 $1,400,152 $ 260,855 $3,328,052 $5,132,173
Dividends and interest receivable - 5 3,642 23 18,890 22,560
Plan loans receivable 69,241 - - - - 69,241
Employer contributions receivable - 5,686 66,871 2,234 99,888 174,679
-------- --------- ---------- --------- ---------- ----------
Net Assets Available for
Plan Benefits $ 69,241 $ 148,805 $1,470,665 $ 263,112 $3,446,830 $5,398,653
======== ========= ========== ========= ========== ==========
</TABLE>
(1) Includes short-term investments of $74,491 in the Diversified Fund, $8,972
in the Company Stock Fund, and $18,667 in the Guaranteed Interest Fund.
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS AT DECEMBER 31, 1993, WITH FUND INFORMATION
-----------------------------------------------------------------------------------------------
Money Guaranteed
Plan Market Diversified/(2)/ Company/(2)/ Interest
Loans Fund Fund Stock Fund Fund Total
----- ---- ---- ---------- ---- -----
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments $ - $ 110,525 $1,168,209 $ 311,468 $3,687,678 $5,277,880
Dividends and interest receivable - 282 4,462 7 21,787 26,538
Plan loans receivable 66,932 - - - - 66,932
Employer contributions receivable - 7,558 75,897 3,208 79,157 165,820
-------- --------- ---------- --------- ---------- ----------
Net Assets Available for
Plan Benefits $ 66,932 $ 118,365 $1,248,568 $ 314,683 $3,788,622 $5,537,170
======== ========= ========== ========= ========== ==========
</TABLE>
(2) Includes short-term investments of $74,389 in the Diversified Fund and
$4,370 in the Company Stock Fund.
-7-
<PAGE>
Notes to Financial Statements (continued)
-----------------------------------------
6. Allocation of Statements of Net Assets Available for Plan Benefits and
----------------------------------------------------------------------
Statements of Income and Changes in Net Assets Available for Plan Benefits
--------------------------------------------------------------------------
(continued)
-----------
STATEMENT OF INCOME AND CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS FOR
-----------------------------------------------------------------------------
THE YEAR ENDED DECEMBER 31, 1994, WITH FUND INFORMATION
-------------------------------------------------------
<TABLE>
<CAPTION>
Plan Money Mkt. Diversified Company Guaranteed
Loans Fund Fund Stock Fund Interest Fund Total
----- ---- ---- ---------- ------------- -----
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employer $ $ 5,686 $ 66,871 $ 8,351 $ 99,887 $180,795
Employee 3,079 86,790 24,467 120,092 234,428
Loan repayments (20,581) - 6,183 5,509 8,889 -
-------- -------- ----------- ---------- ---------- --------
(20,581) 8,765 159,844 38,327 228,868 415,223
Investment income:
Interest - 5,197 2,878 1,519 211,482 221,076
Dividends - - 16,649 - - 16,649
-------- -------- ----------- ---------- ---------- --------
- 5,197 19,527 1,519 211,482 237,725
Net depreciation
in the fair value of
investments - - (14,284) (39,376) - (53,660)
-------- -------- ----------- ---------- ---------- --------
Total income (20,581) 13,962 165,087 470 440,350 599,288
Disbursements
Payments to participants - (20,379) (123,972) (8,939) (582,275) (735,565)
Loans to participants 26,485 - (11,642) (275) (14,568) -
Loan defaults (3,595) - - - - (3,595)
Fees - (31) (2,754) (134) (2,152) (5,071)
-------- -------- ----------- ---------- ---------- --------
Total disbursements 22,890 (20,410) (138,368) (9,348) (598,995) (744,231)
Transfers
Transfers from ESOP - - 1,824 - 1,876 3,700
Transfers from (to) SARPM - - (2,666) 5,850 (458) 2,726
Transfers between funds - 36,888 196,220 (48,543) (184,565) -
-------- -------- ----------- ---------- ---------- --------
Net transfers - 36,888 195,378 (42,693) (183,147) 6,426
-------- -------- ----------- ---------- ---------- --------
Net increase (decrease) 2,309 30,440 222,097 (51,571) (341,792) (138,517)
Net assets, beginning of year 66,932 118,365 1,248,568 314,683 3,788,622 5,537,170
-------- -------- ----------- ---------- ---------- ----------
Net assets, end of year $ 69,241 $148,805 $ 1,470,665 $263,112 $3,446,830 $5,398,653
======== ======== =========== ========== ========== ==========
</TABLE>
-8-
<PAGE>
Notes to Financial Statements (continued)
-----------------------------------------
6. Allocation of Statements of Net Assets Available for Plan Benefits and
----------------------------------------------------------------------
Statements of Income and Changes in Net Assets Available for Plan Benefits
--------------------------------------------------------------------------
(continued)
-----------
STATEMENT OF INCOME AND CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS FOR
-----------------------------------------------------------------------------
THE YEAR ENDED DECEMBER 31, 1993, WITH FUND INFORMATION
-------------------------------------------------------
<TABLE>
<CAPTION>
Plan Money Mkt. Diversified Company Guaranteed
Loans Fund Fund Stock Fund Interest Fund Total
----- ---- ---- ---------- ------------- -----
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employer $ - $ 7,558 $ 75,897 $ 10,566 $ 79,157 $ 173,178
Employee - 7,140 52,649 29,433 120,575 209,797
Loan repayments (21,037) - 2,665 5,543 12,829 -
--------- -------- ---------- ---------- ----------- ----------
(21,037) 14,698 131,211 45,542 212,561 382,975
Investment income:
Interest - 3,118 13,008 1,451 258,991 276,568
Dividends - - 16,366 - - 16,366
--------- -------- ---------- ---------- ----------- ----------
- 3,118 29,374 1,451 258,991 292,934
Net appreciation
in the fair value of
investments - - 150,902 39,180 - 190,082
--------- -------- ---------- ----------- ----------- ----------
Total income (21,037) 17,816 311,487 86,173 471,552 865,991
Disbursements
Payments to participants - (12,025) (64,784) (15,582) (460,407) (552,798)
Loans to participants 31,100 - (12,709) - (18,391) -
Loan defaults - - - - - -
Fees - (55) (3,460) (246) (3,912) (7,673)
--------- -------- ---------- ---------- ---------- ----------
Total disbursements 31,100 (12,080) (80,953) (15,828) (482,710) (560,471)
Transfers
Transfers from ESOP - 1,397 6,740 - 4,209 12,346
Transfers from (to) SARPM - (216) (176) (294) (41,033) (41,719)
Transfers between funds - 680 28,981 (8,359) (21,302) -
--------- -------- ---------- ---------- ---------- ----------
Net transfers - 1,861 35,545 (8,653) (58,126) (29,373)
--------- -------- ---------- ---------- ---------- ----------
Net increase (decrease) 10,063 7,597 266,079 61,692 (69,284) 276,147
Net assets, beginning of year 56,869 110,768 982,489 252,991 3,857,906 5,261,023
--------- ---------- ----------- ---------- ---------- ----------
Net assets, end of year $ 66,932 $ 118,365 $ 1,248,568 $ 314,683 $3,788,622 $5,537,170
========= ========== =========== ========== ========== ==========
</TABLE>
-9-
<PAGE>
Notes to Financial Statements (continued)
-----------------------------------------
7. Transactions with Parties-In-Interest
-------------------------------------
During the years ended December 31, 1994 and 1993, the Plan entered into the
following transactions with parties-in-interest:
<TABLE>
<CAPTION>
December 31
-----------------------------------------------
1994 1993
-------------------------- --------------------------
Units/Shares Amount Units/Shares Amount
------------ ------ ------------ ------
<S> <C> <C> <C> <C>
Fleet National Bank Money Market Fund:
- --------------------------------------
Purchases of face amount -- $2,785,511 -- $6,773,745
Sales of face amount -- 2,786,177 -- 6,842,011
Investment income -- 4,476 -- 4,573
Brown & Sharpe Manufacturing Company Class A
- --------------------------------------------
Purchases of capital stock -- $ -- 2,765 $ 23,895
Distributions of capital stock to participants -- -- 1,484 14,330
Sales of capital stock, at market value 2,436 16,880 -- --
</TABLE>
-10-
<PAGE>
BROWN & SHARPE SAVINGS & RETIREMENT PLAN
SCHEDULE OF REPORTABLE TRANSACTIONS
For the Year Ended December 31, 1994
------------------------------------
<TABLE>
<CAPTION>
CURRENT VALUE OF
---------------
PURCHASE SELLING COST OF ASSET ON
-------- ------- ------- --------
IDENTITY OF PARTY INVOLVED DESCRIPTION OF ASSETS PRICE PRICE ASSET TRANSACTION DATE NET GAIN
- -------------------------- --------------------- ----- ----- ----- ---------------- --------
<S> <C> <C> <C> <C> <C> <C>
Category (i) A single transaction in excess of 5% of plan assets
- -----------------------------------------------------------------
Aetna Life Insurance Aetna Capital GIC
Company Lt. 10439 Sold $352,342
face amount $ -- $ 352,342 $ 352,342 $ 352,342 $ --
Fleet National Bank* Fleet Money Market
Sold $354,353 face amount 354,353 -- 354,353 354,353 --
Category (iii) A series of securities transactions in excess of 5% of plan assets
- -----------------------------------------------------------------------------------
Fleet National Bank* Fleet Money Market
Purchased $2,785,511 face
amount in 277 transactions $2,785,511 $ -- $2,785,511 $2,785,511 $ --
Sold $2,786,177 in 169
transactions -- 2,786,177 2,786,177 2,786,177 --
American International AI Life GIC #18181
Life Assurance Company 5.12%, due 12/31/98
of New York Purchased $361,638 face
amount in 17 transactions 361,638 -- 361,638 361,638 --
Principal Mutual Life Principal Mutual GIC 88705-
Insurance Company 3,6.38%, 12/31/95, 96, & 97
Sold $429,585 in 9 -- 429,585 429,585 429,585 --
transactions
</TABLE>
There were no category (ii) or (iv) reportable transactions during 1994.
* Indicates party-in-interest to the Plan
-11-
<PAGE>
BROWN & SHARPE SAVINGS & RETIREMENT PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT DECEMBER 31, 1994
<TABLE>
<CAPTION>
Shares or Current Cost
Face Value Description Value of Investment
============================================================================================================
<S> <C> <C> <C>
MONEY MARKET FUND
Short-Term Investments
2,178 Fleet Money Market $ 2,178 $ 2,178
140,936 Fidelity Retirement Mny Mkt Prt 630 140,936 140,936
----------------- ------------------
Total Money Market Fund $ 143,114 $ 143,114
DIVERSIFIED FUND
Short-Term Investments
74,491 Fleet Money Market $ 74,491 $ 74,491
Government Securities
58,327 US Trees Notes 8.625% due 8/15/97 59,476 56,827
16,678 US Trees Bonds 11.125% due 8/15/03 20,018 22,056
----------------- ------------------
Total Government Securities 79,494 78,884
Preferred Equities
200 Chrysler Crop Dep shs Pepstg 1/4 PFD 27,443 10,007
167 Ford Mtr Co. Del Dep shs Repstg PFD A 15,344 16,362
------------------ ------------------
Total Preferred Equities 42,787 26,369
Common Equities
500 Advanta Crop Cl B Com 12,633 10,507
767 Airtouch Communications Inc. 22,344 17,074
417 Alco Std Corp Com 26,163 21,944
500 Allied Group Inc Comstk 12,383 13,978
250 Altera Corp 10,476 7,106
125 Amer International Group Inc. Com 12,258 7,838
500 Applebees Intl Inc. 6,692 7,235
500 Applied Mterials Inc. 21,139 24,771
500 Aps Hldg Crop 14,134 7,755
750 Atmel Crop 25,142 16,736
834 Baker Inc. 12,508 16,709
834 Barnes & Noble Inc. 26,059 23,766
834 Brinker Intl Inc. 15,114 18,325
167 Cabletron Sys Inc. Com 7,755 7,834
667 Ceridian Crop 17,929 12,516
417 Citicorp Com 17,251 15,404
167 Coastal Healthcare Group Inc. Com 4,566 5,003
167 Compuware Corp 6,004 5,704
250 Cordis Corp 15,135 11,749
334 Covenant Trans Inc Cla A Com 6,504 6,711
471 D R Horton Inc. 4,295 6,330
334 Danaher Corp 17,428 12,643
667 Danka Business Sys Plc Adr 14,426 14,378
834 Dovatron Intl Inc. 21,473 16,417
584 EMC Corp Mass 12,824 11,737
83 First USA Inc 2,741 2,966
1,167 Ford Mtr Co Del 32,542 35,854
334 General Elec Co Com 17,011 17,494
334 Healthsource Inc 13,634 14,064
1,001 Healthtrust Inc- The Hospital Co 31,771 17,553
500 Healthwise Amer Inc Co. 16,511 9,506
334 Hewlett Packard Co Com 33,314 21,795
417 Home Depot Inc. 19,179 18,535
</TABLE>
-12-
<PAGE>
BROWN & SHARPE SAVINGS & RETIREMENT PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT DECEMBER 31, 1994
<TABLE>
<CAPTION>
Shares or Current Cost
Face Value Description Value of Investment
==============================================================================================================
<S> <C> <C> <C>
167 Homedco Group In 6,275 6,254
834 Humana Inc 18,867 16,528
334 Huntco Inc. 7,338 7,830
334 Idex Corp 14,093 8,355
450 Inland Steel Com 15,817 15,915
334 Integrated Health Svcs Inc. 13,175 8,103
500 Intel Corp Com 31,959 15,678
584 Kellwood Co 12,258 10,506
250 Lam Research Corporation 9,319 9,621
417 Landstar Sys Inccom 13,655 12,633
1,667 Libbey Inc. 29,186 26,591
334 Lincare Hldgs Inc. 9,673 8,900
167 Mariner Health Group Inc. 3,607 3,669
699 Mark IV Inds Inc. 13,798 7,794
167 Microsoft corp 10,194 10,082
1,251 Mid Atlantic Med Svcs Inc 28,613 23,721
417 Motorola Inc. Com 24,183 18,265
334 Nationsbank Corp 15,052 15,611
334 Norwest Corp 7,797 8,350
500 Noven Pharmaceuticals Inc. 6,192 7,592
667 Officemax Inc Com 17,678 15,139
434 Ornda Healthcorp Com Stk 5,420 6,445
400 Parametric Technology Corp Com 13,809 14,390
500 Phsician Corp of Amer 10,257 13,717
334 Physicians Healt Svcs Inc 9,089 7,763
500 Quantum Health Res Inc 14,385 18,278
834 Quorum Health Group Inc Com Stk 15,844 13,073
834 Reliance Stl & alum Co Com 10,528 12,333
584 Roper Inds Inc New 14,739 16,931
500 Scherer R P Corp Del 22,703 18,648
334 Sealed Air corp Com 12,091 10,635
500 Sensormatic Electronics Com 18,012 16,629
484 Silicon Graphics Inc. 15,069 15,299
334 Solectron Corp 9,173 8,899
500 Southwest Airlaines Common 8,381 11,398
750 Sports & Rec Inc 19,325 15,808
584 Sun Healthcare Group Inc 14,812 11,704
334 TCF Finl Corp 13,759 13,597
484 Teradyne Common 16,384 11,693
667 Tower Automotive Inc com 6,004 8,023
417 Tractor Supply Co Com 8,756 10,038
1,101 US Can corp 20,914 17,633
500 US Xpress Enterprises Inc. Com 5,754 7,279
750 United Healthcare Corp 33,866 18,690
167 Value Health Inc 6,212 5,578
500 Wellcare Mgmt Group Inc 12,258 10,630
500 Wescast inds Inc Com 4,628 5,504
500 West one Bancorp 13,259 10,507
167 Xilinx Inc 9,882 7,454
---------------- ------------------
Total Common Equities 1,203,380 1,053,700
Total Diversified Fund $ 1,400,152 $ 1,233,444
================ ==================
</TABLE>
-13-
<PAGE>
BROWN & SHARPE SAVINGS & RETIREMENT PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT DECEMBER 31, 1994
<TABLE>
<CAPTION>
Shares or Current Cost
Face Value Description Value of Investment
===========================================================================================================
<S> <C> <C> <C>
COMPANY STOCK FUND
Short-Term Investments
8,972 Fleet Money Market $ 8,972 $ 8,972
Company Common Stock
9,760 Brown & Sharpe Mfg Co Cl B $ 64,659 $ 99,373
28,260 Brown & Sharpe Mfg Co Cl A 187,224 270,845
------------- ---------------
Total Company Common Stock $ 251,883 $ 370,218
Total Company Stock Fund $ 260,855 $ 379,190
============= ===============
Guaranteed Interest Contracts
Blended GIC 18,667 Fleet Money Market $ 18,667 $ 18,667
A I Life GIC #18181 5.12% due 12/31/98 361,629 361,629
Prin Mut GIC #88705-3 6.38% due 12/31/97 2,309,388 2,309,388
------------- ---------------
Total Blended GIC $ 2,689,684 $ 2,689,684
1992 GIC Prin Mut GIC 6.80% due 12/31/96 $ 271,463 $ 271,463
1991 GIC Allstate Life Ins. Gic 8.60% due 04/01/96 $ 366,905 $ 366,905
Total Guaranteed Interest Contracts $ 3,328,052 $ 3,328,052
============= ===============
TOTAL INVESTMENTS $ 5,132,173 $ 5,083,800
============= ===============
Plan Loans Receivable $ 69,241 $ 69,241
------------- ---------------
TOTAL ASSETS HELD FOR INVESTMENTS $ 5,201,414 $ 5,153,041
============= ===============
</TABLE>
<PAGE>
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statements
(Form S-8 Nos. 2-33676, 2-56621, 2-60398, 2-77219, 2-77575, 2-83637, 2-97935,
33-17831, 33-23601, 33-23603, 33-30927, and 33-54496) of Brown & Sharpe
Manufacturing Company of our report dated June 16, 1995, with respect to the
financial statements and schedules of the Brown & Sharpe Savings and Retirement
Plan included in this Annual Report (Form 11-K) for the year ended December 31,
1994.
ERNST & YOUNG LLP
Providence, Rhode Island
June 21, 1995
-15-
