<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, 1995, 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,
1995."
"Exhibit 28.2 - Annual Report on Form 11-K for The Brown & Sharpe Savings
and Retirement Plan for the year ended December 31, 1995."
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, 1995
-----------------
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 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
24 day of June, 1996.
- -- ----------
BROWN & SHARPE SAVINGS & RETIREMENT
PLAN FOR MANAGEMENT EMPLOYEES
By: /s/ Alfred J. Corso
---------------------------------------
Alfred J. Corso
Controller
(Principal Accounting Officer)
2
<PAGE>
BROWN & SHARPE SAVINGS AND RETIREMENT PLAN FOR MANAGEMENT EMPLOYEES
Table of Contents
Page
-----
Report of Ernst & Young LLP, Independent Auditors 4
Financial Statements:
Statements of Net Assets Available for Plan Benefits
at December 31, 1995 and 1994 5
Statements of Changes in Net Assets Available for Plan
Benefits for the Years Ended December 31, 1995 and 1994 5
Notes to Financial Statements 6-13
Supplemental Schedules:
Schedule of Reportable Transactions 14
Schedule of Assets Held for Investment Purposes at December 31, 1995 15-19
Consent of Independent Auditors 20
3
<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 statements of net assets available for plan
benefits of the Brown & Sharpe Savings and Retirement Plan for Management
Employees (the Plan) as of December 31, 1995 and 1994, and the related
statements of changes in net assets available for plan benefits for the years
then ended. These financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. 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, the financial statements referred to above present fairly,
in all material respects, the net assets available for benefits of the Plan at
December 31, 1995 and 1994, and the changes in its net assets available for
benefits for the years 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, 1995, 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 audits of the financial
statements and, in our opinion, are fairly stated in all material respects in
relation to the financial statements taken as a whole.
ERNST & YOUNG LLP
June 24, 1996
4
<PAGE>
THE BROWN & SHARPE SAVINGS & RETIREMENT PLAN FOR MANAGEMENT EMPLOYEES
---------------------------------------------------------------------
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
----------------------------------------------------
<TABLE>
<CAPTION>
As of December 31,
-------------------------------
1995 1994
------------- -------------
<S> <C> <C>
Assets:
Investments (Notes 2 and 5) $21,861,765 $18,115,193
Dividends and interest receivable 86,842 72,413
Employer contribution receivable 759,023 618,050
Plan loans receivable 260,451 257,669
----------- -----------
Net Assets Available for Plan Benefits $22,968,081 $19,063,325
=========== ===========
</TABLE>
STATEMENTS OF INCOME AND CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
--------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the years ended December 31,
----------------------------------
1995 1994
---------------- ----------------
<S> <C> <C>
Additions
- ---------
Contributions:
Employer $ 788,389 $ 641,425
Employee 1,195,789 892,263
----------- -----------
1,984,178 1,533,688
Investment income:
Interest 744,736 723,338
Dividends 36,276 93,572
----------- -----------
781,012 816,910
Net appreciation (depreciation)
in fair value of investments 2,815,217 (255,446)
----------- -----------
Total additions 5,580,407 2,095,152
Deductions
- ----------
Payments to participants (1,720,895) (3,678,814)
Loan defaults - (2,490)
Fees (12,402) (38,014)
----------- -----------
Total deductions (1,733,297) (3,719,318)
Transfers
- ---------
From Brown & Sharpe Employee Stock Owner-
ship & Profit Participation Plan 11,383 24,994
(ESOP)
From (To) Brown & Sharpe Savings
& Retirement Plan (SARP) 46,263 (2,726)
----------- -----------
Net transfers 57,646 22,268
----------- -----------
Net increase (decrease) in assets 3,904,756 (1,601,898)
Net assets, beginning of year 19,063,325 20,665,223
----------- -----------
Net assets, end of year $22,968,081 $19,063,325
=========== ===========
</TABLE>
See notes to the financial statements.
5
<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.
As a result of the Company's acquisition of DEA S.p.A. on September 28,
1994, participants of the Digital Electronic Automation, Inc. Tax-Deferred
Savings Plan (the DEA Plan) became eligible to participate in the Plan on
April 1, 1995. Pursuant to the terms of the DEA Plan, former DEA employees
may select an annuity as a distribution option under the Plan. In May 1996,
approximately $1,947,740 of net assets were transferred from the DEA Plan to
the Plan.
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
1995 and in 1994, (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 1995 and 1994 were $759,023 and $618,050, 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
1995 and 1994 were $29,366 and $23,375, 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.
6
<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
1995 and 1994, 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.
7
<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 $3,148,482 at December 31, 1995.
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, which approximates
fair value. 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.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-----------------------------------------
5. INVESTMENTS
-----------
Investments held at December 31, 1995 and 1994 are as follows:
<TABLE>
<CAPTION>
Description Current Value Cost
- ----------- ------------------------ ------------------------
1995 1994 1995 1994
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Investments stated at fair value:
Company common stock $ 1,873,933 $ 1,109,342 $ 1,741,706 $ 1,630,513
Diversified investments:
Government securities 1,036,330 397,155 982,003 394,104
Common & preferred stock 8,643,280 6,225,859 6,481,257 5,396,028
Short-term investments (1) 882,338 919,677 882,338 919,677
Investments stated at contract value:
Guaranteed interest contracts 9,425,884 9,463,160 9,425,884 9,463,160
----------- ----------- ----------- -----------
Total investments $21,861,765 $18,115,193 $19,513,188 $17,803,482
=========== =========== =========== ===========
</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, 1995:
<TABLE>
<CAPTION>
Current Value
-------------
<S> <C> <C>
Investments stated at contract value:
1991 GIC Allstate Life Insurance Company $1,065,148
Contract #GA5052
1993 GIC Principal Mutual Life Insurance 5,996,330
Contract #GA88705-3
1994 GIC American International Life 1,552,305
Assurance Company
Contract #18181
Investments stated at fair value:
182,822.74 shares Brown & Sharpe Manufacturing 1,873,933
Company Common Stock Class A & B
</TABLE>
The following investments exceed 5% of Plan Assets at December 31, 1994:
<TABLE>
<CAPTION>
Current Value
-------------
<S> <C> <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
</TABLE>
9
<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, 1995, WITH FUND INFORMATION
-----------------------------------------------------------------------------------------------
Money Market Diversified(1) Company(1) Guaranteed(1)
Plan Loans Fund Fund Stock Fund Interest Fund Total
-------------- ------------- ------------------ -------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments $ - $602,217 $ 9,827,923 $1,919,432 $9,512,193 $21,861,765
Dividends and interest
receivable - 2,126 32,422 52 52,242 86,842
Employer contribution
receivable - 112,039 491,748 31,165 124,071 759,023
Plan loans receivable 260,451 - - - - 260,451
-------- -------- --------------- ---------- ---------- -----------
Net Assets Available for
Plan Benefits $260,451 $716,382 $10,352,093 $1,950,649 $9,688,506 $22,968,081
======== ======== =============== ========== ========== ===========
</TABLE>
- --------------
(1) Includes short-term investments of $148,313 in the Diversified Fund,
$45,499 in the Company Stock Fund, and $86,309 in the Guaranteed Interest
Fund.
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS AT DECEMBER 31, 1994, WITH FUND INFORMATION
-----------------------------------------------------------------------------------------------
Money Market Diversified(2) Company(2) Guaranteed
Plan Loans 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
receivable - 15 18,199 102 54,097 72,413
Employer contribution
receivable - 71,358 302,084 20,236 224,372 618,050
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>
- -----------------
(2) 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.
10
<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)
-----------
<TABLE>
<CAPTION>
STATEMENT OF INCOME AND CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS FOR THE YEAR ENDED DECEMBER 31, 1995,
---------------------------------------------------------------------------------------------------------------
WITH FUND INFORMATION
---------------------
Money Diversified Company Stock Guaranteed
Plan Loans Market Fund Fund Fund Interest Fund Total
---------------- -------------- ----------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employer $ - $112,039 $ 491,748 $ 60,531 $ 124,071 $ 788,389
Employee - 69,775 659,500 117,459 349,055 1,195,789
Loan repayments (121,146) 4,526 48,977 7,706 59,937 -
--------- -------- ----------- ---------- ----------- -----------
(121,146) 186,340 1,200,225 185,696 533,063 1,984,178
Investment income:
Interest - 38,695 76,710 2,281 627,050 744,736
Dividends - - 36,276 - - 36,276
--------- -------- ----------- ---------- ----------- -----------
- 38,695 112,986 2,281 627,050 781,012
Net appreciation
in fair value of
investments - - 2,051,965 763,252 - 2,815,217
--------- -------- ----------- ---------- ----------- -----------
Total income (121,146) 225,035 3,365,176 951,229 1,160,113 5,580,407
Disbursements
Payments to
participants - (61,407) (249,068) (148,196) (1,262,224) (1,720,895)
Loans to participants 119,450 (16,972) (76,715) (4,019) (21,744) -
Fees - (88) (10,215) (367) (1,732) (12,402)
--------- -------- ----------- ---------- ----------- -----------
Total disbursements 119,450 (78,467) (335,998) (152,582) (1,285,700) (1,733,297)
Transfers
Transfers (to) from
ESOP - 622 138 (2,105) 12,728 11,383
Transfers from SARP 4,478 - 11,234 1,383 29,168 46,263
Transfers between funds - 42,564 (3,913) (16,470) (22,181) -
--------- -------- ----------- ---------- ----------- -----------
Net transfers 4,478 43,186 7,459 (17,192) 19,715 57,646
--------- -------- ----------- ---------- ----------- -----------
Net increase (decrease) 2,782 189,754 3,036,637 781,455 (105,872) 3,904,756
Net assets, beginning of
year 257,669 526,628 7,315,456 1,169,194 9,794,378 19,063,325
--------- -------- ----------- ---------- ----------- -----------
Net assets, end of year $ 260,451 $716,382 $10,352,093 $1,950,649 $ 9,688,506 $22,968,081
========= ======== =========== ========== =========== ===========
</TABLE>
11
<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)
-----------
<TABLE>
<CAPTION>
STATEMENT OF INCOME AND CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS FOR THE YEAR ENDED DECEMBER 31, 1994,
---------------------------------------------------------------------------------------------------------------
WITH FUND INFORMATION
---------------------
Money Diversified Company Stock Guaranteed
Plan Loans Market Fund Fund 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
investments - - (80,279) (175,167) - (255,446)
--------- --------- ----------- ---------- ----------- -----------
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) -
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>
12
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-----------------------------------------
7. TRANSACTIONS WITH PARTIES-IN-INTEREST
-------------------------------------
<TABLE>
<CAPTION>
DURING THE YEARS ENDED DECEMBER 31, 1995 AND 1994, THE PLAN ENTERED INTO THE FOLLOWING TRANSACTIONS WITH
PARTIES-IN-INTEREST:
December 31
-----------------------------------------------------------------------
1995 1994
---------------------------------- ----------------------------------
Units/Shares Amount Units/Shares Amount
----------------- ---------------- ----------------- ---------------
<S> <C> <C> <C> <C>
Fleet National Bank Money Market Fund:
- ----------------------------------------
Purchases of face amount -- $6,581,041 -- $12,270,546
Sales of face amount -- 6,814,326 -- 12,276,465
Investment income -- 17,253 -- 19,070
Brown & Sharpe Manufacturing Company Class A
- --------------------------------------------
Purchases of capital stock 2,939 $ 20,074 -- $ --
Distributions of capital stock to 4,518 43,224 -- --
participants
Sales of capital stock, at market value -- -- 10,635 73,711
</TABLE>
13
<PAGE>
BROWN & SHARPE SAVINGS & RETIREMENT PLAN FOR MANAGEMENT EMPLOYEES
SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
------------------------------------
<TABLE>
<CAPTION>
CURRENT VALUE OF
ASSET ON
IDENTITY OF PARTY INVOLVED DESCRIPTION OF ASSETS PURCHASE PRICE SELLING PRICE COST OF ASSET TRANSACTION DATE NET GAIN
- --------------------------- ---------------------- -------------- ----------------- ------------- ------------------- --------
<S> <C> <C> <C> <C> <C> <C>
Category (iii) A series of securities transactions in excess of 5% of plan assets
- --------------------------------------------------------------------------------------
Fleet National Bank* Fleet Money Market
Purchased $6,581,041
face amount in 265
transactions $6,581,041 $ -- $6,581,041 $6,581,041 $ --
Sold $6,814,326 face
amount in 207
transactions -- 6,814,326 6,814,326 6,814,326 --
Category (iii) Continued
- ----------------------------
Principal Mutual Life Principal Mutual GIC
Insurance Corporation #88705-3 - 6.38%,
12-31-97 Purchased
$406,019 face value
in 12 transactions. $ 406,019 $ -- $ 406,019 $ 406,019 $ --
Sold $1,024,743 face
value in 12
transactions. -- 1,024,743 1,024,743 1,024,743 --
</TABLE>
There were no category (i), (ii) or (iv) reportable transactions during 1995.
* Indicates party-in-interest to the Plan.
14
<PAGE>
BROWN & SHARPE SAVINGS & RETIREMENT PLAN FOR MANAGEMENT EMPLOYEES
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT DECEMBER 31, 1995
<TABLE>
<CAPTION>
FAIR COST OF
SHARES OR FACE VALUE DESCRIPTION VALUE INVESTMENT
================================================================================
<S> <C> <C> <C>
MONEY MARKET FUND
Short-Term Investments
5,111 Fleet Money Market $ 5,111 $ 5,111
597,106 Fidelity Retirement
Mny Mkt Prt 630 597,106 597,106
----------- ------------
Total Money Market Fund $ 602,217 $ 602,217
=========== ============
DIVERSIFIED FUND
Short-Term Investments
148,313 Fleet Money Market $ 148,313 $ 148,313
Government Securities
294,670 US Treas Notes 8.625
due 8/15/97 310,140 286,872
168,383 US Treas Notes 7.75
due 12/31/99 182,722 167,988
168,383 US Treas Notes 5.875
due 6/30/00 171,803 167,962
84,191 US Treas Notes 6.375
due 8/15/02 88,282 83,928
84,191 US Treas Bonds 11.125
due 8/15/03 112,974 111,343
168,383 US Treas Notes 5.75
due 8/15/03 170,409 163,910
---------- ------------
Total Government Securities 1,036,330 982,003
Common Equities
2,189 Alco Std Corp Com 99,872 57,734
3,031 Altera Corp 150,787 53,831
6,483 America West Airls
Inc. Cl B 110,207 86,493
1,852 Amerin Corp Com 49,547 32,506
1,684 Amr Corp Del Com 125,024 118,332
2,947 Analog Devices Inc. 104,240 107,295
3,368 Applied Materials
Inc. Com 132,602 83,366
4,546 Atlas Air Inc. Com 76,151 81,167
6,735 Atmel Corp 150,703 75,098
2,105 Bank of Boston Corp
Com 97,346 93,647
1,684 Bankamerica
Corp Com 109,028 85,830
3,789 Barnes &
Noble Inc. 109,870 107,976
3,157 Bay Networks Inc. Com 129,839 81,725
2,105 Borders Group Inc. Com 38,939 37,708
1,684 Cabletron Sys Inc. Com 136,390 79,335
</TABLE>
15
<PAGE>
BROWN & SHARPE SAVINGS & RETIREMENT PLAN FOR MANAGEMENT EMPLOYEES
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT DECEMBER 31, 1995
<TABLE>
<CAPTION>
FAIR COST OF
SHARES OR FACE VALUE DESCRIPTION VALUE INVESTMENT
================================================================================
<S> <C> <C> <C>
2,021 Canadian National Railway
Co. Com 30,309 29,085
6,062 Central Garden &
Pet Co. Com 57,587 43,783
2,694 Ceridian Corp 111,133 50,547
2,357 Chemical Banking Corp 138,495 128,994
1,684 Cisco Sys Inc. Com 125,656 85,486
2,273 Citicorp Com 152,871 91,391
3,368 Cognex Corp 117,026 48,121
4,210 Columbia/HCA Healthcare
Corp Com 213,636 83,910
2,947 Community Health
Sys Inc. 104,976 99,487
2,694 Corporate
Express Inc. Com 81,161 64,343
3,368 Danaher Corp 106,923 63,824
3,199 Danaka Business
Systems Plc Adr 118,373 91,706
2,694 Diamond Multimedia Sys
Inc. Com 96,652 84,191
842 Donaldson Lufkin &
Jenrette Inc. Com 26,310 23,704
4,210 Dovatron Intl Inc. 142,073 82,876
2,526 DSC Communications
Corp Com 93,137 89,777
1,684 Eckerd Jack Corp Del 75,141 60,326
1,094 Filenet Corp Com 51,441 49,925
505 Fore Systems 30,056 28,490
Inc. Com
2,778 FTP Software Inc. Com 80,571 89,371
2,273 GCR Hldgs Ltd Com 51,146 44,985
5,051 General Nutrition Cos
Inc. 116,184 92,032
1,684 Global Directmail Corp
Com 46,305 46,679
4,210 Gymboree Corp 86,822 94,498
1,263 Healthcare
Compare Corp 54,935 25,074
5,893 Healthsource Inc. 212,162 114,852
4,210 Healthsouth
Corporation 122,604 76,119
3,368 Hewlett Packard
Co Com 282,041 110,024
2,526 Hilfiger Tommy Corp 107,028 52,744
4,210 HyperionSoftware
Corp Com 89,453 84,849
5,220 Intel Corp Com 296,228 116,531
2,863 International
Rectifier Corp 71,563 46,389
421 Jones Apparel
Group Inc. 16,575 14,438
2,357 Kensey Nash Corp Com 29,467 30,056
1,684 KLA Instrs Corp 43,886 69,671
1,094 Kohls Corp 57,461 56,464
2,526 La Quinta Inns, Inc. 69,142 70,294
1,684 Lam Research Corporation 77,035 73,119
842 Linear Technology Corp 33,045 32,767
</TABLE>
16
<PAGE>
BROWN & SHARPE SAVINGS & RETIREMENT PLAN FOR MANAGEMENT EMPLOYEES
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT DECEMBER 31, 1995
<TABLE>
<CAPTION>
FAIR COST OF
SHARES OR FACE VALUE DESCRIPTION VALUE INVESTMENT
================================================================================
<S> <C> <C> <C>
2,526 LSI Logic Corp 82,718 101,558
842 Maxim Integrated 32,414 30,959
Prods Inc.
674 Medtronic Inc. 37,634 33,289
421 Micro Whse Inc. 18,206 20,480
1,852 Microchip Technology 67,606 74,611
Inc.
842 Microsoft Corp 73,878 83,349
674 MSC Indl Direct Inc. 18,522 12,797
CL A Com
1,684 Nationsbank Corp 117,237 78,805
337 Network Appliance 13,513 6,115
Inc. Com
674 Newbridge Networks Corp 27,867 27,971
3,452 Norrell corp GA Common 101,398 82,575
Stk
1,684 Norwest Corp 55,566 42,150
5,472 Officemax Inc. Com 122,446 85,786
5,809 Ornda Healthcorp 135,064 87,374
Com Stk
1,263 Oxford Health Plans 93,295 67,788
Inc.
589 Pacificare Health Sys 51,273 51,308
Inc.
4,294 Paging Network Inc. 104,661 102,571
842 Parametric Technology 55,987 30,259
Corp Com
2,189 Petiatric Svcs of 34,476 35,976
America Com
1,263 Physicians Health Svcs 46,726 48,250
Inc.
2,947 Platinum Technology 54,146 53,777
Inc.
842 Promus Hotel Corp Com 18,733 17,285
421 Qualcomm Inc. 18,101 18,179
4,210 Quorum Health Group Inc. 92,611 65,994
Com Stk
758 Regal Cinemas Inc. Com 22,542 20,888
2,610 SFX Broadcasting Inc. 78,951 75,186
1,263 Silicon Graphics Inc. 34,887 42,228
842 Sitel Corp Com 25,784 22,250
2,105 Sodak Gaming Inc. 43,411 41,876
3,368 Softkey Intl Inc. Com 77,877 94,516
1,684 Solectron Corp Com 74,299 44,922
2,526 Spectrian Corp Com 56,198 83,819
1,684 Sterling Healthcare 17,891 22,732
Group Inc. Com
253 Stratacom Inc. 18,564 18,091
2,021 Sun Microsystems 92,190 82,137
4,210 TCF Finl Corp 139,442 86,005
421 Tellabs Incorporated 15,575 16,585
3,368 Teradyne Common 84,612 40,710
2,189 Texas Instruments 112,732 141,344
Com
</TABLE>
17
<PAGE>
BROWN & SHARPE SAVINGS & RETIREMENT PLAN FOR MANAGEMENT EMPLOYEES
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT DECEMBER 31, 1995
<TABLE>
<CAPTION>
FAIR COST OF
SHARES OR FACE VALUE DESCRIPTION VALUE INVESTMENT
===================================================================================
<S> <C> <C> <C>
2,357 Trimble Nav Ltd. 43,906 53,612
2,947 US Office Prods Co. Com 67,037 44,108
3,789 United Healthcare Corp 247,681 94,348
5,051 United States Filtr Corp
New 134,496 87,179
2,526 USA Waste Svcs Inc. Com 47,673 49,973
1,010 Valudjet Inc. Com 25,005 17,975
1,936 Washington Mut Inc. Com 55,914 52,100
1,263 Worldcom Inc. GA Com 44,516 38,202
2,021 Xilinx Inc. 61,628 30,102
842 3 Com Corp 39,254 38,728
2,947 3-D Sys Corp Del 69,983 59,470
------------ ----------
Total Common Equities $ 8,643,280 $6,481,257
Total Diversified Fund $ 9,827,923 $7,611,573
============ ==========
COMPANY STOCK FUND
Short-Term Investments
45,499 Fleet Money Market $ 45,499 $ 45,499
Company Common Stock
182,822.74 Brown & Sharpe Mfg Co
Cl A & B $ 1,873,933 $1,741,706
------------ ----------
Total Company Common Stock $ 1,873,933 $1,741,706
Total Company Stock Fund $ 1,919,432 $1,787,205
============ ==========
Guaranteed Interest Contracts
Blended GIC Fleet Money Market $ 83,783 $ 83,783
A I Life GIC #18181 6.38%
due 12/31/99 1,552,305 1,552,305
Principal Mutual
GIC #88705-3
6.38% due 12/31/97 5,996,330 5,996,330
--------- ---------
Total Blended GIC $ 7,632,418 $ 7,632,418
1992 GIC Fleet Money Market $ 1,521 $ 1,521
Principal Mutual
GIC #(3)88705-02
6.80% due 12/31/96 812,101 812,101
--------- ---------
$ 813,622 $ 813,622
</TABLE>
18
<PAGE>
BROWN & SHARPE SAVINGS & RETIREMENT PLAN FOR MANAGEMENT EMPLOYEES
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT DECEMBER 31, 1995
<TABLE>
<CAPTION>
FAIR COST OF
SHARES OR FACE VALUE DESCRIPTION VALUE INVESTMENT
====================================================================================
<S> <C> <C> <C>
1991 GIC Fleet Money Market $ 1,005 $ 1,005
Allstate Life Ins.
GIC #GA5052
8.60% due 04/01/96 1,065,148 1,065,148
------------ -----------
$ 1,066,153 $ 1,066,153
TOTAL GUARANTEED INTEREST CONTRACTS $ 9,512,193 $ 9,512,193
============ ===========
TOTAL INVESTMENTS $ 21,861,765 $19,513,188
PLAN LOANS RECEIVABLE $ 260,451 $ 260,451
------------ -----------
TOTAL ASSETS HELD FOR INVESTMENTS $ 22,122,216 $19,773,639
============ ===========
</TABLE>
19
<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 24, 1996, with respect to the
financial statements and schedule of the Brown & Sharpe Savings and Retirement
Plan included in this Annual Report (Form 11-K) for the year ended December 31,
1995.
ERNST & YOUNG LLP
Providence, Rhode Island
June 24, 1996
20
<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, 1995
-----------------
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
24th day of June 1996.
- ---- ---------
BROWN & SHARPE SAVINGS & RETIREMENT PLAN
By: /s/ Alfred J. Corso
-------------------------------
Alfred J. Corso
Controller
(Principal Accounting Officer)
2
<PAGE>
THE BROWN & SHARPE SAVINGS AND RETIREMENT PLAN
Table of Contents
Page
-----
Report of Ernst & Young LLP, Independent Auditors 4
Financial Statements:
Statements of Net Assets Available for Plan Benefits
at December 31, 1995 and 1994 5
Statements of Changes in Net Assets Available for Plan
Benefits for the Years Ended December 31, 1995 and 1994 5
Notes to Financial Statements 6-13
Supplemental Schedules:
Schedule of Reportable Transactions 14
Schedule of Assets Held for Investment Purposes
at December 31, 1995 15-18
Consent of Independent Auditors 19
3
<PAGE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
-------------------------------------------------
Brown & Sharpe Savings and Retirement Plan Committee
Brown & Sharpe Manufacturing Company
We have audited the accompanying statements of net assets available for plan
benefits of the Brown & Sharpe Savings and Retirement Plan (the Plan) as of
December 31, 1995 and 1994, and the related statements of changes in net assets
available for plan benefits for the years then ended. These financial
statements are the responsibility of the Plan's management. Our responsibility
is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. 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, the financial statements referred to above present fairly,
in all material respects, the net assets available for benefits of the Plan at
December 31, 1995 and 1994, and the changes in its net assets available for
benefits for the years 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, 1995, 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 audits of the financial
statements and, in our opinion, are fairly stated in all material respects in
relation to the financial statements taken as a whole.
ERNST & YOUNG LLP
June 24, 1996
4
<PAGE>
THE BROWN & SHARPE SAVINGS & RETIREMENT PLAN
--------------------------------------------
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
----------------------------------------------------
<TABLE>
<CAPTION>
As of December 31,
----------------------
1995 1994
---------- ----------
<S> <C> <C>
Assets:
Investments (Notes 2 and 5) $5,569,599 $5,132,173
Dividends and interest receivable 24,260 22,560
Employer contributions receivable 181,813 174,679
Plan loans receivable 70,355 69,241
---------- ----------
Net Assets Available for Plan $5,846,027 $5,398,653
Benefits ========== ==========
</TABLE>
STATEMENTS OF INCOME AND CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
- --------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the years ended December 31,
-----------------------------------
1995 1994
----------------- ----------------
<S> <C> <C>
Additions
- ---------
Contributions:
Employer $ 189,035 $ 180,795
Employee 295,062 234,428
---------- ----------
484,097 415,223
Investment income:
Interest 230,153 221,076
Dividends 7,202 16,649
---------- ----------
237,355 237,725
Net appreciation (depreciation)
in the fair value of investments 514,075 (53,660)
---------- ----------
Total additions 1,235,527 599,288
Deductions
- ----------
Payments to participants (744,842) (735,565)
Forfeitures (580) -
Loan Default - (3,595)
Fees (2,955) (5,071)
---------- ----------
Total deductions (748,377) (744,231)
Transfers
- ---------
From Brown & Sharpe Employee Stock Owner-
ship & Profit Participation Plan (ESOP) 6,487 3,700
(To) From Brown & Sharpe Savings & Retire-
ment Plan for Mgmt. Employees (SARPM) (46,263) 2,726
---------- ----------
Net transfers (39,776) 6,426
---------- ----------
Net increase (decrease) in assets 447,374 (138,517)
Net assets, beginning of year 5,398,653 5,537,170
---------- ----------
Net assets, end of year $5,846,027 $5,398,653
========== ==========
</TABLE>
See notes to the financial statements
5
<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
1995 and in 1994 (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 1995 and 1994 were $181,813 and $174,679 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
1995 and 1994 were $7,222 and $6,117 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.
6
<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, Principal Mutual Life Insurance Company, and Allstate Life Insurance
Company. 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
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
1995 forfeitures used to pay Plan expenses totaled $580. In 1994, 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.
7
<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 $950,142 at December 31, 1995.
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, which
approximates fair value.
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.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-----------------------------------------
5. INVESTMENTS
-----------
Investments held at December 31, 1995 and 1994 are as follows:
<TABLE>
<CAPTION>
Description Current Value Cost
- ----------- ---------------------- ----------------------
1995 1994 1995 1994
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Investments stated at fair value:
Company common stock $ 373,420 $ 251,883 $ 347,071 $ 370,218
Diversified investments:
Government securities 194,591 79,494 184,390 78,884
Common & preferred stock 1,622,939 1,246,167 1,216,984 1,080,069
Short-term investments (1) 197,381 245,244 197,381 245,244
Investments stated at contract value:
Guaranteed interest contracts 3,181,268 3,309,385 3,181,268 3,309,385
---------- ---------- ---------- ----------
Total investments $5,569,599 $5,132,173 $5,127,094 $5,083,800
========== ========== ========== ==========
</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, 1995:
<TABLE>
<CAPTION>
Current Value
------------------
Investments stated at contract value:
<S> <C>
1991 GIC Allstate Life Insurance Company $ 347,351
Contract #GA5052
1993 GIC Principal Mutual Life Insurance 2,045,067
Contract #GA88705-03
1994 GIC American International Life 529,418
Assurance Company Contract #18181
Investment stated at fair value
36,431.26 shares Brown & Sharpe Manufacturing 373,420
Company Common
Stock Class A & B
</TABLE>
The following investments exceed 5% of Plan assets at December 31, 1994:
<TABLE>
<CAPTION>
Current Value
------------------
Investments stated at contract value:
<S> <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
1994 GIC American International Life 361,629
Assurance Company Contract #18181
</TABLE>
9
<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, 1995, 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 $ - $131,413 $1,845,379 $382,150 $3,210,657 $5,569,599
Dividends and interest
receivable - 418 6,130 11 17,701 24,260
Plan loans receivable 70,355 - - - - 70,355
Employer contributions
receivable - 8,915 105,720 6,491 60,687 181,813
-------- -------- ---------- -------- ---------- ----------
Net Assets Available
for Plan Benefits $ 70,355 $140,746 $1,957,229 $388,652 $3,289,045 $5,846,027
======== ======== ========== ======== ========== ==========
</TABLE>
(1) Includes short-term investments of $27,849 in the Diversified Fund, $8,730
in the Company Stock Fund, and $29,389 in the Guaranteed Interest Fund.
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS AT DECEMBER 31, 1994, 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 $ - $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>
(2) 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.
10
<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)
-----------
<TABLE>
<CAPTION>
STATEMENT OF INCOME AND CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS FOR THE YEAR ENDED DECEMBER 31, 1994,
WITH FUND INFORMATION
- ------------------------------------------------------------------------------------------------------------------------------------
Plan Money Mkt. Diversified Company Stock Guaranteed
Loans Fund Fund Fund Interest Fund Total
----------- ------------ ----------- ------------ ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employer $ - $ 8,915 $ 105,720 $ 13,713 $ 60,687 $ 189,035
Employee - 8,505 119,517 28,889 138,151 295,062
Loan repayments (23,752) - 7,184 5,873 10,695 -
-------- -------- ---------- -------- ---------- ----------
(23,752) 17,420 232,421 48,475 209,533 484,097
Investment income:
Interest - 8,230 15,211 1,451 205,261 230,153
Dividends - - 7,202 - - 7,202
-------- -------- ---------- -------- ---------- ----------
- 8,230 22,413 1,451 205,261 237,355
Net appreciation
in the fair value
of investments - - 386,160 127,915 - 514,075
-------- -------- ---------- -------- ---------- ----------
Total income (23,752) 25,650 640,994 177,841 414,794 1,235,527
Disbursements
Payments to participants - (33,741) (142,189) (41,176) (527,736) (744,842)
Loans to participants 29,344 (946) (18,245) - (10,153) -
Forfeitures - (580) - - - (580)
Fees - (17) (1,370) (3) (1,565) (2,955)
-------- -------- ---------- -------- ---------- ----------
Total disbursements 29,344 (35,284) (161,804) (41,179) (539,454) (748,377)
Transfers
Transfers (to) from ESOP - 1,575 - (258) 5,170 6,487
Transfers to SARPM (4,478) - (11,234) (1,383) (29,168) (46,263)
Transfers between funds - - 18,608 (9,481) (9,127) -
-------- -------- ---------- -------- ---------- ----------
Net transfers (4,478) 1,575 7,374 (11,122) (33,125) (39,776)
-------- -------- ---------- -------- ---------- ----------
Net increase (decrease) 1,114 (8,059) 486,564 125,540 (157,785) 447,374
Net assets, beginning of 69,241 148,805 1,470,665 263,112 3,446,830 5,398,653
year -------- -------- ---------- -------- ---------- ----------
Net assets, end of year $ 70,355 $140,746 $1,957,229 $388,652 $3,289,045 $5,846,027
======== ======== ========== ======== ========== ==========
</TABLE>
11
<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)
-----------
<TABLE>
<CAPTION>
STATEMENT OF INCOME AND CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS FOR THE YEAR ENDED DECEMBER 31, 1994,
---------------------------------------------------------------------------------------------------------------
WITH FUND INFORMATION
---------------------
Plan Money Mkt. Diversified Company Stock Guaranteed
Loans Fund Fund 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) - - (2,666) 5,850 (458) 2,726
SARPM
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>
12
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
-----------------------------------------
7. TRANSACTIONS WITH PARTIES-IN-INTEREST
-------------------------------------
<TABLE>
<CAPTION>
DURING THE YEARS ENDED DECEMBER 31, 1995 AND 1994, THE PLAN ENTERED INTO THE FOLLOWING TRANSACTIONS WITH PARTIES-IN-INTEREST:
December 31
----------------------------------------------------------------------
1995 1994
---------------------------------- ----------------------------------
Units/Shares Amount Units/Shares Amount
----------------- --------------- ----------------- ---------------
<S> <C> <C> <C> <C>
Fleet National Bank Money Market Fund:
- ----------------------------------------
Purchases of face amount -- $1,539,816 -- $2,785,511
Sales of face amount -- 1,577,038 -- 2,786,177
Investment income -- 3,991 -- 4,476
Brown & Sharpe Manufacturing Company
- ------------------------------------
Class A
- -------
Purchases of capital stock 661 $ 4,517 -- $ --
Distributions of capital stock to 593 5,645 -- --
participants
Sales of capital stock, at market value -- -- 2,436 16,880
</TABLE>
13
<PAGE>
BROWN & SHARPE SAVINGS & RETIREMENT PLAN
SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
------------------------------------
<TABLE>
<CAPTION>
CURRENT VALUE OF
---------------
ASSET ON TRANSACTION
--------------------
IDENTITY OF PARTY INVOLVED DESCRIPTION OF ASSETS PURCHASE PRICE SELLING PRICE COST OF ASSET DATE NET GAIN
- --------------------------- ---------------------- -------------- --------------- ------------- --------------------- --------
Category (iii) A series of securities transactions in excess of 5% of plan assets
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Fleet National Bank* Fleet Money Market
Purchased $1,539,816
face amount in
265 transactions $1,539,816 $ -- $1,539,816 $1,539,816 $ --
Sold $1,577,038 in
207 transactions -- 1,577,038 1,577,038 1,577,038 --
Principal Mutual Life Principal Mutual GIC
Insurance Corporation #88705-3, 6.38%,
12-31-97
Purchased $114,718
face amount in 12
transactions. $ 114,718 $ -- $ 114,718 $ 114,718 $ --
Sold $289,535 face
amount in
12 transactions. -- 289,535 289,535 289,535 --
</TABLE>
There were no category (i), (ii) or (iv) reportable transactions during 1995.
* Indicates party-in-interest to the Plan
14
<PAGE>
<TABLE>
<CAPTION>
BROWN & SHARPE SAVINGS & RETIREMENT PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT DECEMBER 31, 1995
SHARES OR FACE VALUE DESCRIPTION FAIR VALUE COST OF INVESTMENT
==================================================================================================================================
MONEY MARKET FUND
Short-Term Investments
<S> <C> <C> <C>
1,115 Fleet Money Market 1,115 1,115
130,298 Fidelity Retirement Mny Mkt Prt 630 130,298 130,298
-------- --------
Total Money Market Fund $131,413 $131,413
======== ========
DIVERSIFIED FUND
Short-Term Investments
27,849 Fleet Money Market 27,849 27,849
Government Securities
55,330 US Treas Notes 8.625 due 8/15/97 58,235 53,866
31,617 US Treas Notes 7.75 due 12/31/99 34,310 31,543
31,617 US Treas Notes 5.875 due 6/30/00 32,259 31,538
15,809 US Treas Notes 6.375 due 8/15/02 16,577 15,759
15,809 US Treas Bonds 11.125 due 8/15/03 21,213 20,907
31,617 US Treas Notes 5.75 due 8/15/03 31,997 30,777
-------- --------
Total Government Securities $194,591 $184,390
Common Equities
411 Alco Std Corp Com 18,753 10,841
569 Altera Corp 28,313 10,108
1,217 America West Airls Inc. Cl B 20,693 16,241
348 Amerin Corp Com 9,303 6,104
316 Amr Corp Del Com 23,476 22,219
553 Analog Devices Inc. 19,573 20,147
632 Applied Materials Inc. Com 24,898 15,654
854 Atlas Air Inc. Com 14,299 15,241
1,265 Atmel Corp 28,297 14,101
395 Bank of Boston Corp Com 18,279 17,584
316 Bankamerica Corp Com 20,472 16,116
711 Barnes & Noble Inc. 20,630 20,274
593 Bay Networks Inc. Com 24,380 15,345
395 Borders Group Inc. Com 7,311 7,080
316 Cabletron Sys Inc. Com 25,610 14,897
379 Canadian National Railway Co. Com 5,691 5,461
1,138 Central Garden & Pet Co. Com 10,813 8,221
506 Ceridian Corp 20,867 9,491
443 Chemical Banking Corp 26,005 24,221
316 Cisco Sys Inc. Com 23,594 16,052
</TABLE>
15
<PAGE>
BROWN & SHARPE SAVINGS & RETIREMENT PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES OR FACE VALUE DESCRIPTION FAIR VALUE COST OF INVESTMENT
=================================================================================================================================
<S> <C> <C> <C>
427 Citicorp Com 28,704 17,160
632 Cognex Corp 21,974 9,036
790 Columbia/HCA Healthcare Corp Com 40,114 15,756
553 Community Health Sys Inc. 19,711 18,681
506 Corporate Express Inc. Com 15,239 12,082
632 Danaher Corp 20,077 11,984
601 Danaka Business Systems Plc Adr 22,227 17,220
506 Diamond Multimedia Sys Inc. Com 18,148 15,809
158 Donaldson Lufkin & Jenrette Inc. Com 4,940 4,451
790 Dovatron Intl Inc. 26,677 15,561
474 DSC Communications Corp Com 17,488 16,857
316 Eckerd Jack Corp Del 14,109 11,327
206 Filenet Corp Com 9,659 9,374
95 Fore Systems Inc. Com 5,644 5,350
522 FTP Software Inc. Com 15,129 16,781
427 GCR Hldgs Ltd Com 9,604 8,447
949 General Nutrition Cos Inc. 21,816 17,281
316 Global Directmail Corp Com 8,695 8,765
790 Gymboree Corp 16,303 17,744
237 Healthcare Compare Corp 10,315 4,708
1,107 Healthsource Inc. 39,838 21,566
790 Healthsouth Corporation 23,021 14,293
632 Hewlett Packard Co Com 52,959 20,659
474 Hilfiger Tommy Corp 20,097 9,904
790 HyperionSoftware Corp Com 16,797 15,932
980 Intel Corp Com 55,622 21,881
537 International Rectifier Corp 13,437 8,710
79 Jones Apparel Group Inc. 3,112 2,711
443 Kensey Nash Corp Com 5,533 5,644
316 KLA Instrs Corp 8,240 13,082
206 Kohls Corp 10,789 10,602
474 La Quinta Inns, Inc. 12,983 13,199
316 Lam Research Corporation 14,465 13,729
158 Linear Technology Corp 6,205 6,153
474 LSI Logic Corp 15,532 19,069
158 Maxim Integrated Prods Inc. 6,086 5,813
126 Medtronic Inc. 7,066 6,251
79 Micro Whse Inc. 3,419 3,845
348 Microchip Technology Inc. 12,694 14,010
158 Microsoft Corp 13,872 15,650
126 MSC Indl Direct Inc. CL A Com 3,478 2,403
</TABLE>
16
<PAGE>
BROWN & SHARPE SAVINGS & RETIREMENT PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES OR FACE VALUE DESCRIPTION FAIR VALUE COST OF INVESTMENT
=================================================================================================================================
<S> <C> <C> <C>
316 Nationsbank Corp 22,013 14,797
63 Network Appliance Inc. Com 2,537 1,148
126 Newbridge Networks Corp 5,233 5,252
648 Norrell Corp GA Common Stk 19,039 15,505
316 Norwest Corp 10,434 7,915
1,028 Officemax Inc. Com 22,992 16,108
1,091 Ornda Healthcorp Com Stk 25,361 16,406
237 Oxford Health Plans Inc. 17,518 12,728
111 Pacificare Health Sys Inc. 9,627 9,634
806 Paging Network Inc. 19,652 19,260
158 Parametric Technology Corp Com 10,513 5,682
411 Petiatric Svcs of America Com 6,474 6,755
237 Physicians Health Svcs Inc. 8,774 9,060
553 Platinum Technology Inc. 10,167 10,098
158 Promus Hotel Corp Com 3,517 3,246
79 Qualcomm Inc. 3,399 3,414
790 Quorum Health Group Inc. Com Stk 17,389 12,392
142 Regal Cinemas Inc. Com 4,233 3,922
490 SFX Broadcasting Inc. 14,824 14,118
237 Silicon Graphics Inc. 6,551 7,929
158 Sitel Corp Com 4,841 4,178
395 Sodak Gaming Inc. 8,151 7,863
632 Softkey Intl Inc. Com 14,623 17,747
316 Solectron Corp Com 13,951 8,435
474 Spectrian Corp Com 10,552 15,739
316 Sterling Healthcare Group Inc.. Com 3,359 4,268
47 Stratacom Inc. 3,486 3,397
379 Sun Microsystems 17,310 15,423
790 TCF Finl Corp 26,183 16,149
79 Tellabs Incorporated 2,925 3,114
632 Teradyne Common 15,888 7,644
411 Texas Instruments Com 21,168 26,540
443 Trimble Nav Ltd. 8,244 10,067
553 US Office Prods Co. Com 12,588 8,282
711 United Healthcare Corp 46,507 17,716
949 United States Filtr Corp New 25,254 16,370
474 USA Waste Svcs Inc. Com 8,952 9,383
190 Valudjet Inc. Com 4,695 3,375
364 Washington Mut Inc. Com 10,499 9,783
237 Worldcom Inc. GA Com 8,359 7,173
379 Xilinx Inc. 11,572 5,652
158 3 Com Corp 7,371 7,272
553 3-D Sys Corp Del 13,139 11,167
---------- ----------
Total Common Equities $1,622,939 $1,216,984
Total Diversified Fund $1,845,379 $1,429,223
========== ==========
</TABLE>
17
<PAGE>
BROWN & SHARPE SAVINGS & RETIREMENT PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT DECEMBER 31, 1995
<TABLE>
<CAPTION>
SHARES OR FACE VALUE DESCRIPTION FAIR VALUE COST OF INVESTMENT
===================================================================================================================================
<S> <C> <C> <C>
COMPANY STOCK FUND
Short-Term Investments
8,730 Fleet Money Market $ 8,730 $ 8,730
Company Common Stock
36,431.26 Brown & Sharpe Mfg Co Cl A & B $ 373,420 $ 347,071
---------- ----------
Total Company Common Stock $ 373,420 $ 347,071
Total Company Stock Fund $ 382,150 $ 355,801
========== ==========
Guaranteed Interest Contracts
Blended GIC Fleet Money Market $ 28,575 $ 28,575
A I Life GIC #18181 6.38% due 529,418 529,418
12/31/99
Principal Mutual GIC #88705-3 2,045,067 2,045,067
6.38% due 12/31/97
---------- ----------
Total Blended GIC $2,603,060 $2,603,060
1992 GIC Fleet Money Market $ 486 $ 486
Principal Mutual GIC - 259,432 259,432
#(3)88705-02 6.80% due 12/31/96
---------- ----------
$ 259,918 $ 259,918
1991 GIC Fleet Money Market $ 328 $ 328
Allstate Life Ins. GIC - #GA 5052 347,351 347,351
8.60% due 04/01/96
---------- ----------
$ 347,679 $ 347,679
TOTAL GUARANTEED INTEREST CONTRACTS $3,210,657 $3,210,657
========== ==========
TOTAL INVESTMENTS $5,569,599 $5,127,094
PLAN LOANS RECEIVABLE $ 70,355 $ 70,355
---------- ----------
TOTAL ASSETS HELD FOR INVESTMENTS $5,639,954 $5,197,449
========== ==========
</TABLE>
18
<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 24, 1996, with respect to the
financial statements and schedule of the Brown & Sharpe Savings and
Retirement Plan included in this Annual Report (Form 11-K) for the year
ended December 31, 1995.
ERNST & YOUNG LLP
Providence, Rhode Island
June 24, 1996
19
