<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(Mark One)
[ X ] ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from ____________ to ____________
Commission file number 1-6805
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
BFI Employee Stock Ownership and Savings Plan
(the "Plan")
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
Browning-Ferris Industries, Inc.,
a Delaware corporation
757 N. Eldridge
Houston, Texas 77079
<PAGE> 2
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Benefits Administration Committee of the
BFI Employee Stock Ownership and Savings Plan:
We have audited the accompanying statements of net assets available for
benefits of the BFI Employee Stock Ownership and Savings Plan as of December
31, 1995 and 1994, and the related statements of changes in net assets
available for benefits for the years then ended. These financial statements
and the schedules referred to below are the responsibility of the Plan
Administrator. Our responsibility is to express an opinion on these financial
statements and schedules 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 BFI
Employee Stock Ownership and Savings Plan as of 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 audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
held for investment purposes as of December 31, 1995 and reportable
transactions for the year ended December 31, 1995 are presented for purposes
of additional analysis and are not a required part of the basic financial
statements but are supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. The supplemental schedules have been
subjected to the auditing procedures applied in the audits of the basic
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
ARTHUR ANDERSEN LLP
Houston, Texas
June 20, 1996
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<PAGE> 3
BFI EMPLOYEE STOCK OWNERSHIP AND SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
- -----------------------------------------------------------------
December 31,
------------------------------
1995 1994
------------- ------------
ASSETS:
Investments, at fair value -
Common stock of Browning-Ferris
Industries, Inc. $100,499,553 $ 87,635,287
Equity investment funds 111,841,460 75,180,548
Other investments 2,159,729 272,123
------------ ------------
214,500,742 163,087,958
Investments, at contract value -
Guaranteed investment contracts 46,497,123 46,666,648
Other investment contracts 5,107,006 --
------------ ------------
266,104,871 209,754,606
------------ ------------
Receivables -
Employer contribution 983,793 1,236,362
Employee contributions 2,867,186 3,515,250
Dividends receivable 580,392 526,355
------------ ------------
4,431,371 5,277,967
------------ ------------
270,536,242 215,032,573
------------ ------------
LIABILITIES:
Accrued expenses 68,828 103,247
------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS $270,467,414 $214,929,326
============ ============
The accompanying notes are an integral part of these financial statements.
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<PAGE> 4
BFI EMPLOYEE STOCK OWNERSHIP AND SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
- ------------------------------------------------------------------
December 31,
------------------------------
1995 1994
------------ ------------
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment income -
Net appreciation in fair
value of investments $ 21,554,215 $ 2,145,663
Interest income 3,316,942 2,874,198
Dividends on common stock
of Browning-Ferris
Industries, Inc. 2,257,672 2,016,375
Dividends and gain
distributions on equity
investment funds 5,001,087 3,674,606
------------ ------------
32,129,916 10,710,842
------------ ------------
Contributions -
Employer 10,886,898 9,728,505
Employee 33,826,941 28,779,643
------------ ------------
44,713,839 38,508,148
------------ ------------
Total additions 76,843,755 49,218,990
------------ ------------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Distributions to participants 21,064,025 17,389,177
Administrative expenses 241,642 297,765
------------ ------------
Total deductions 21,305,667 17,686,942
------------ ------------
Net increase 55,538,088 31,532,048
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 214,929,326 183,397,278
------------ ------------
End of year $270,467,414 $214,929,326
============ ============
The accompanying notes are an integral part of these financial statements.
-4-
<PAGE> 5
BFI EMPLOYEE STOCK OWNERSHIP AND SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(1) Description of the Plan -
- ----------------------------
Organization and administration -
Browning-Ferris Industries, Inc. ("the Company") established the BFI
Employee Stock Ownership and Savings Plan ("the Plan") effective January 1,
1980. The Plan is a defined contribution plan covering all United States and
certain expatriate personnel of the Company with one or more years of service,
except certain employees subject to collective bargaining agreements. The Plan
is subject to the provisions of the Employee Retirement Income Security Act of
1974 ("ERISA"), as amended.
Management of the Plan is provided by the Benefits Administration
Committee ("the Plan Administrator"), which is currently composed of six
members, all of whom are management employees of the Company. Members of the
Plan Administrator do not receive any compensation from the Plan. Fees charged
by the trustee and certain other expenses are reflected in the accompanying
financial statements. Certain other costs associated with internal
administration are paid by the Company and are not charged to the Plan.
Fidelity Management Trust Company ("Fidelity") is the sole trustee of the
Plan's assets under a trust agreement dated April 12, 1993.
Amendments -
Effective December 30, 1994, the Plan was amended and restated in its
entirety to incorporate amendments dated June 12, 1985 through September 7,
1993, dealing with, among other matters, compliance with the Tax Reform Act of
1986, subsequent legislation and various regulations and rulings issued by
government agencies thereon. There were no other significant amendments to the
Plan during the period January 1, 1994 through December 31, 1995.
Investment programs -
The following details the investment options available to each Plan
participant:
Fund 1 Guaranteed Investment Contract Fund
Fund 2 Fidelity Balanced Fund
Fund 3 Fidelity Growth and Income Portfolio
Fund 4 Fidelity Growth Company Fund
Fund 5 BFI Common Stock
Participants may currently invest their contributions in any
or all of the five funds in increments of five percent; however, no
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<PAGE> 6
more than twenty-five percent of a participant's contributions can be invested
in Fund 5. A participant may contribute up to five percent of his total
earnings as a "Basic Contribution" and up to an additional ten percent as a
"Supplemental Contribution" subject to Internal Revenue Service ("IRS")
limitations. The Company's matching contributions (defined as fifty percent of
the Basic Contribution subject to IRS limitations) are invested in Fund 5.
Participants can change the allocation of their savings contributions in
these five funds not more than once monthly, or they can discontinue,
increase, or decrease their savings participation rate within the 1 to 15
percent contribution levels permitted by the Plan, by giving at least thirty
(30) days written notice, prior to the end of a calendar quarter.
Participant accounts -
Each participant's account is credited with the participant's
contribution, the Company's matching contribution and allocation of Plan
earnings. Plan earnings are allocated by fund in proportion to the
participant's balances in each fund. Administrative expenses are allocated
equally to each participant.
Vesting -
Participants are fully vested in all amounts reflected in their accounts.
Distribution of benefits -
Benefits are payable to participants or to a designated beneficiary only
at the time of their retirement, death or termination of employment. In
limited circumstances, account withdrawals may be made for financial hardship
in accordance with IRS guidelines for such withdrawals.
Distribution of a participant's account balance depends largely on the
value of the account and the Fund from which the distribution is paid. If the
account balance is $3,500 or less, the distribution is lump-sum cash. If the
account balance is greater than $3,500, the participant has the option to
defer receipt in accordance with the Plan or take a lump-sum cash payment. In
either case, with certain requirements, the participant may elect to roll all
or a portion of such distribution to a qualified retirement plan. In addition,
Funds 1 through 4 are distributed in cash only, and are based on the account
balances as of the date the distribution is processed. For Fund 5, the
participant determines whether the form of distribution will be either the
shares of the Company's common stock with uninvested amounts in cash or in a
lump-sum cash distribution. The market value of the Company's common stock at
the date the shares are sold for cash is used to determine the amount of the
distribution. The amount allocated to accounts of participants who have
withdrawn from participation in the earnings and operations of the Plan for
the Plan years ended December 31, 1995 and 1994 was less than 2% of net assets
available for benefits for each of the two years.
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<PAGE> 7
The Company may terminate the Plan at any time by appropriate resolution
of its board of directors. If the Plan is so terminated, all amounts credited
to the accounts of each participant shall be paid after payment of all
appropriate expenses.
(2) Summary of significant accounting policies -
- -----------------------------------------------
The assets of the Plan are reflected at quoted market value, if
available. Investments that have no quoted market price are shown at cost
which approximates estimated market value. Investments in guaranteed and other
investment contracts are reported at contract value.
The financial statements are presented on the accrual basis whereby
interest and dividend income are recognized as earned and expenses are
recorded as incurred.
(3) Guaranteed and other investment contracts -
- ----------------------------------------------
Investments in guaranteed and other investment contracts are fully
benefit-responsive, and therefore, are reported at contract value which
represents the principal balance of the investment contracts plus accrued
interest at the stated contract rate (the crediting interest rate), less
payments received and contract charges by the insurance company. A fully
benefit-responsive investment contract provides a liquidity guarantee by a
financially responsible third party of principal and previously accrued
interest for liquidations, transfers, loans or hardship withdrawals initiated
by Plan participants under terms of the ongoing Plan. The fair value of these
investments was $53,254,053 and $45,672,141 as of December 31, 1995 and 1994,
respectively. The crediting interest rate for the guaranteed investment
contracts is established at the time of the purchase of the contract and does
not vary throughout the duration of the contract. The crediting interest rate
of the other investment contracts is reset on a quarterly basis based upon the
terms of the contract and the performance of the underlying assets; however,
the minimum crediting interest rate is zero under these contracts. As of
December 31, 1995 and 1994, the crediting interest rate for the Guaranteed
Investment Contract Fund was 6.46% and 6.45%, respectively. The average yields
of this fund were 6.76% and 6.81% for the years ended December 31, 1995 and
1994, respectively. There are limitations on returns of certain of the
guaranteed and other investment contracts upon certain changes to the Plan's
provisions or upon the termination or partial termination of the investment
contracts by the Company or Fidelity.
(4) Federal income taxes -
- -------------------------
The Plan obtained its latest determination letter on October 7, 1988, in
which the IRS stated that the Plan, as then designed, was in compliance with
the applicable requirements of the IRS Code. Although the Plan has been
amended since receiving the
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<PAGE> 8
determination letter, the Plan Administrator believes that the Plan is
currently designed and being operated in compliance with the applicable
requirements of the IRS Code and that the Plan is qualified and the related
trust is tax-exempt. Neither the Company's contributions nor the income of the
trust fund are taxable to the participants prior to distribution.
(5) Investments -
- ----------------
Investments that represent 5% or more of the Plan's net assets are
separately identified in the following table.
-------------------------------------------------
December 31, 1995 December 31, 1994
-------------------------------------------------
Number of Number of
Shares Fair Value/ Shares Fair Value/
or Contract or Contract
Units Value Units Value
----------------------- -----------------------
Common Stock of
Browning-Ferris
Industries, Inc. 3,421,261 $100,499,553 3,088,468 $ 87,635,287
------------ ------------
Equity Investment Funds -
Fidelity Growth
and Income
Portfolio 1,657,124 44,825,201 1,362,280 28,730,491
Fidelity Balanced
Fund 2,169,317 29,329,172 1,979,803 24,331,779
Fidelity Growth
Company Fund 1,038,498 37,687,087 811,382 22,118,278
------------ ------------
111,841,460 75,180,548
------------ ------------
Short Term Investment
Funds 2,159,729 272,123
------------ ------------
Guaranteed Investment
Contracts 46,497,123 46,666,648
------------ ------------
Other Investment Contracts 5,107,006 --
------------ ------------
Total $266,104,871 $209,754,606
============ ============
-8-
<PAGE> 9
During 1995 and 1994, the Plan's investments (including investments
bought, sold and held during the year) appreciated (depreciated) in value as
follows:
------------------------------
1995 1994
------------ ------------
Common Stock of Browning-Ferris
Industries, Inc. $ 2,274,127 $ 6,997,699
Equity Investment Funds 19,280,088 (4,852,036)
----------- -----------
Net Appreciation $21,554,215 $ 2,145,663
=========== ===========
(6) Reconciliation of Financial Statements to IRS Form 5500 -
- --------------------------------------------------------------
The following is a reconciliation of net assets available for benefits
per the financial statements to the IRS Form 5500 as of December 31, 1995:
Net assets available for
benefits per the financial
statements $270,467,414
Difference between fair
value and contract value
of investment contracts 1,649,924
------------
Net assets available for
benefits per the IRS Form 5500 $272,117,338
============
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<PAGE> 10
(7) Allocation to investment programs -
- ----------------------------------------
The following schedules reflect the allocation of net assets available
for benefits and changes in net assets available for benefits to the separate
investment programs for the respective periods:
- ----------------------------------------------------------------------------
ALLOCATION OF NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS
DECEMBER 31, 1995
- ----------------------------------------------------------------------------
Fund 1 Fund 3
Guaranteed Fund 2 Fidelity
Investment Fidelity Growth and
Contract Balanced Income
Fund Fund Portfolio
- ----------------------------------------------------------------------------
ASSETS:
Investments, at fair value -
Common stock of Browning-
Ferris Industries, Inc. $ -- $ -- $ --
Equity investment funds -- 29,329,172 44,825,201
Other investments 2,159,729 -- --
----------- ----------- -----------
2,159,729 29,329,172 44,825,201
Investments, at contract value -
Guaranteed investment
contracts 46,497,123 -- --
Other investment contracts 5,107,006 -- --
----------- ----------- -----------
53,763,858 29,329,172 44,825,201
----------- ----------- -----------
Receivables -
Employer contribution -- -- --
Employee contributions 679,067 418,867 646,352
Dividends receivable -- -- --
----------- ----------- -----------
679,067 418,867 646,352
----------- ----------- -----------
54,442,925 29,748,039 45,471,553
----------- ----------- -----------
LIABILITIES:
Accrued expenses 54,644 6,471 4,969
----------- ----------- -----------
NET ASSETS AVAILABLE FOR
BENEFITS $54,388,281 $29,741,568 $45,466,584
=========== =========== ===========
(Remaining Funds and Total on following page.)
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<PAGE> 11
- ----------------------------------------------------------------------------
ALLOCATION OF NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS
DECEMBER 31, 1995 (Continued)
- ----------------------------------------------------------------------------
Fund 4
Fidelity Fund 5
Growth BFI
Company Common
Fund Stock (A) Total
- ----------------------------------------------------------------------------
ASSETS:
Investments, at fair value -
Common stock of Browning-
Ferris Industries, Inc. $ -- $100,499,553 $100,499,553
Equity investment funds 37,687,087 -- 111,841,460
Other investments -- -- 2,159,729
----------- ------------ ------------
37,687,087 100,499,553 214,500,742
Investments, at contract value -
Guaranteed investment
contracts -- -- 46,497,123
Other investment contracts -- -- 5,107,006
----------- ------------ ------------
37,687,087 100,499,553 266,104,871
----------- ------------ ------------
Receivables -
Employer contribution -- 983,793 983,793
Employee contributions 637,578 485,322 2,867,186
Dividends receivable -- 580,392 580,392
----------- ------------ ------------
637,578 2,049,507 4,431,371
----------- ------------ ------------
38,324,665 102,549,060 270,536,242
----------- ------------ ------------
LIABILITIES:
Accrued expenses 1,784 960 68,828
----------- ------------ ------------
NET ASSETS AVAILABLE FOR
BENEFITS $38,322,881 $102,548,100 $270,467,414
=========== ============ ============
((A) on following page)
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<PAGE> 12
- ----------------------------------------------------------------------------
ALLOCATION OF NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS
DECEMBER 31, 1995 (Continued)
- ----------------------------------------------------------------------------
(A) The following table separately identifies participant-directed and non
participant-directed Net Assets Available for Benefits of Fund 5:
Non
Participant- Participant-
Directed Directed Total
------------ ------------ ------------
ASSETS:
Common stock of Browning-
Ferris Industries, Inc. $34,899,622 $65,599,931 $100,499,553
Contributions receivable 485,322 983,793 1,469,115
Dividends receivable 202,075 378,317 580,392
----------- ----------- ------------
35,587,019 66,962,041 102,549,060
----------- ----------- ------------
LIABILITIES:
Accrued expenses 960 -- 960
----------- ----------- ------------
NET ASSETS AVAILABLE FOR
BENEFITS (Fund 5) $35,586,059 $66,962,041 $102,548,100
=========== =========== ============
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<PAGE> 13
- ---------------------------------------------------------------------------
ALLOCATION OF NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS
DECEMBER 31, 1994
- ----------------------------------------------------------------------------
Fund 1 Fund 3
Guaranteed Fund 2 Fidelity
Investment Fidelity Growth and
Contract Balanced Income
Fund Fund Portfolio
- ----------------------------------------------------------------------------
ASSETS:
Investments, at fair value -
Common stock of Browning-
Ferris Industries, Inc. $ -- $ -- $ --
Equity investment funds -- 24,331,779 28,730,491
Other investments 272,123 -- --
----------- ----------- -----------
272,123 24,331,779 28,730,491
Investments, at contract value -
Guaranteed investment
contracts 46,666,648 -- --
----------- ----------- -----------
46,938,771 24,331,779 28,730,491
----------- ----------- -----------
Receivables -
Employer contribution -- -- --
Employee contributions 962,900 571,873 738,358
Dividends receivable -- -- --
----------- ----------- -----------
962,900 571,873 738,358
----------- ----------- -----------
47,901,671 24,903,652 29,468,849
----------- ----------- -----------
LIABILITIES:
Accrued expenses 74,338 14,455 9,292
----------- ----------- -----------
NET ASSETS AVAILABLE FOR
BENEFITS $47,827,333 $24,889,197 $29,459,557
=========== =========== ===========
(Remaining Funds and Total on following page.)
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<PAGE> 14
- ----------------------------------------------------------------------------
ALLOCATION OF NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS
DECEMBER 31, 1994 (Continued)
- ----------------------------------------------------------------------------
Fund 4
Fidelity Fund 5
Growth BFI
Company Common
Fund Stock (A) Total
- ----------------------------------------------------------------------------
ASSETS:
Investments, at fair value -
Common stock of Browning-
Ferris Industries, Inc. $ -- $87,635,287 $ 87,635,287
Equity investment funds 22,118,278 -- 75,180,548
Other investments -- -- 272,123
----------- ----------- ------------
22,118,278 87,635,287 163,087,958
Investments, at contract value -
Guaranteed investment
contracts -- -- 46,666,648
----------- ----------- ------------
22,118,278 87,635,287 209,754,606
----------- ----------- ------------
Receivables -
Employer contribution -- 1,236,362 1,236,362
Employee contributions 630,943 611,176 3,515,250
Dividends receivable -- 526,355 526,355
----------- ----------- ------------
630,943 2,373,893 5,277,967
----------- ----------- ------------
22,749,221 90,009,180 215,032,573
----------- ----------- ------------
LIABILITIES:
Accrued expenses 3,097 2,065 103,247
----------- ----------- ------------
NET ASSETS AVAILABLE
FOR BENEFITS $22,746,124 $90,007,115 $214,929,326
=========== =========== ============
((A) on following page)
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<PAGE> 15
- ---------------------------------------------------------------------------
ALLOCATION OF NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS
DECEMBER 31, 1994 (Continued)
- ----------------------------------------------------------------------------
(A) The following table separately identifies participant-directed and non
participant-directed Net Assets Available for Benefits of Fund 5:
Non
Participant- Participant-
Directed Directed Total
------------ ------------ -----------
ASSETS:
Common stock of Browning-
Ferris Industries, Inc. $31,085,546 $56,549,741 $87,635,287
Contributions receivable 611,176 1,236,362 1,847,538
Dividends receivable 186,610 339,745 526,355
----------- ----------- -----------
31,883,332 58,125,848 90,009,180
----------- ----------- -----------
LIABILITIES:
Accrued expenses 2,065 -- 2,065
----------- ----------- -----------
NET ASSETS AVAILABLE FOR
BENEFITS (Fund 5) $31,881,267 $58,125,848 $90,007,115
=========== =========== ===========
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<PAGE> 16
- ---------------------------------------------------------------------------
ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE
FOR BENEFITS TO INVESTMENT PROGRAMS
YEAR ENDED DECEMBER 31, 1995
- ----------------------------------------------------------------------------
Fund 1 Fund 3
Guaranteed Fund 2 Fidelity
Investment Fidelity Growth and
Contract Balanced Income
Fund Fund Portfolio
- ----------------------------------------------------------------------------
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment income -
Net appreciation
(depreciation) in fair
value of investments $ -- $ 2,545,906 $ 8,932,314
Interest income 3,316,942 -- --
Dividends on common stock
of Browning-Ferris
Industries, Inc. -- -- --
Dividends & gain distributions
on equity investments -- 1,181,148 2,125,182
----------- ----------- -----------
3,316,942 3,727,054 11,057,496
----------- ----------- -----------
Contributions -
Employer -- -- --
Employee 9,652,974 5,075,921 6,961,129
----------- ----------- -----------
9,652,974 5,075,921 6,961,129
----------- ----------- -----------
Total additions 12,969,916 8,802,975 18,018,625
----------- ----------- -----------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Distributions to
participants 5,816,523 2,280,085 2,718,736
Administrative expenses 173,490 30,645 22,233
----------- ----------- -----------
Total deductions 5,990,013 2,310,730 2,740,969
----------- ----------- -----------
TRANSFERS BETWEEN FUNDS (418,955) (1,639,874) 729,371
----------- ----------- -----------
Net increase 6,560,948 4,852,371 16,007,027
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 47,827,333 24,889,197 29,459,557
----------- ----------- -----------
End of year $54,388,281 $29,741,568 $45,466,584
=========== =========== ===========
(Remaining Funds and Total on following page.)
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<PAGE> 17
- ----------------------------------------------------------------------------
ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE
FOR BENEFITS TO INVESTMENT PROGRAMS
YEAR ENDED DECEMBER 31, 1995 (Continued)
- ---------------------------------------------------------------------------
Fund 4
Fidelity Fund 5
Growth BFI
Company Common
Fund Stock (A) Total
- ----------------------------------------------------------------------------
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment income -
Net appreciation
(depreciation) in fair
value of investments $ 7,801,868 $ 2,274,127 $ 21,554,215
Interest income -- -- 3,316,942
Dividends on common stock
of Browning-Ferris
Industries, Inc. -- 2,257,672 2,257,672
Dividends & gain distributions
on equity investments 1,694,757 -- 5,001,087
----------- ------------ ------------
9,496,625 4,531,799 32,129,916
----------- ------------ ------------
Contributions -
Employer -- 10,886,898 10,886,898
Employee 6,480,673 5,656,244 33,826,941
----------- ------------ ------------
6,480,673 16,543,142 44,713,839
----------- ------------ ------------
Total additions 15,977,298 21,074,941 76,843,755
----------- ------------ ------------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Distributions to
participants 2,266,657 7,982,024 21,064,025
Administrative expenses 8,049 7,225 241,642
----------- ------------ ------------
Total deductions 2,274,706 7,989,249 21,305,667
----------- ------------ ------------
TRANSFERS BETWEEN FUNDS 1,874,165 (544,707) --
----------- ------------ ------------
Net increase 15,576,757 12,540,985 55,538,088
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 22,746,124 90,007,115 214,929,326
----------- ------------ ------------
End of year $38,322,881 $102,548,100 $270,467,414
=========== ============ ============
((A) on following page)
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<PAGE> 18
- ---------------------------------------------------------------------------
ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE
FOR BENEFITS TO INVESTMENT PROGRAMS
YEAR ENDED DECEMBER 31, 1995 (Continued)
- ---------------------------------------------------------------------------
(A) The following table separately identifies participant-directed and non
participant-directed Changes in Net Assets Available for Benefits of Fund 5:
Non
Participant- Participant-
Directed Directed Total
------------ ------------ -----------
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment income -
Net appreciation in fair
value of investments $ 907,167 $ 1,366,960 $ 2,274,127
Dividends on common stock
of Browning-Ferris
Industries, Inc. 790,038 1,467,634 2,257,672
----------- ----------- ------------
1,697,205 2,834,594 4,531,799
----------- ----------- ------------
Contributions 5,656,244 10,886,898 16,543,142
----------- ----------- ------------
Total additions 7,353,449 13,721,492 21,074,941
----------- ----------- ------------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Distributions to participants 3,101,571 4,880,453 7,982,024
Administrative expenses 2,379 4,846 7,225
----------- ----------- ------------
Total deductions 3,103,950 4,885,299 7,989,249
----------- ----------- ------------
TRANSFERS BETWEEN FUNDS (544,707) -- (544,707)
----------- ----------- ------------
Net increase 3,704,792 8,836,193 12,540,985
NET ASSETS AVAILABLE FOR
BENEFITS:
Beginning of year 31,881,267 58,125,848 90,007,115
----------- ----------- ------------
End of year $35,586,059 $66,962,041 $102,548,100
=========== =========== ============
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<PAGE> 19
- ---------------------------------------------------------------------------
ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE
FOR BENEFITS TO INVESTMENT PROGRAMS
YEAR ENDED DECEMBER 31, 1994
- ----------------------------------------------------------------------------
Fund 1 Fund 3
Guaranteed Fund 2 Fidelity
Investment Fidelity Growth and
Contract Balanced Income
Fund Fund Portfolio
- ----------------------------------------------------------------------------
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment income -
Net appreciation
(depreciation) in fair
value of investments $ -- $(2,066,662) $(1,456,527)
Interest income 2,874,198 -- --
Dividends on common stock
of Browning-Ferris
Industries, Inc. -- -- --
Dividends & gain distributions
on equity investments -- 759,392 2,045,885
----------- ----------- -----------
2,874,198 (1,307,270) 589,358
----------- ----------- -----------
Contributions -
Employer -- -- --
Employee 8,429,379 4,717,517 5,672,027
----------- ----------- -----------
8,429,379 4,717,517 5,672,027
----------- ----------- -----------
Total additions 11,303,577 3,410,247 6,261,385
----------- ----------- -----------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Distributions to
participants 4,766,348 2,248,528 1,985,071
Administrative expenses 218,537 41,588 25,761
----------- ----------- -----------
Total deductions 4,984,885 2,290,116 2,010,832
----------- ----------- -----------
TRANSFERS BETWEEN FUNDS 77,197 (351,023) 189,865
----------- ----------- -----------
Net increase 6,395,889 769,108 4,440,418
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 41,431,444 24,120,089 25,019,139
----------- ----------- -----------
End of year $47,827,333 $24,889,197 $29,459,557
=========== =========== ===========
(Remaining Funds and Total on following page.)
-19-
<PAGE> 20
- ---------------------------------------------------------------------------
ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE
FOR BENEFITS TO INVESTMENT PROGRAMS
YEAR ENDED DECEMBER 31, 1994 (Continued)
- ---------------------------------------------------------------------------
Fund 4
Fidelity Fund 5
Growth BFI
Company Common
Fund Stock (A) Total
- ----------------------------------------------------------------------------
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment income -
Net appreciation
(depreciation) in fair
value of investments $(1,328,847) $ 6,997,699 $ 2,145,663
Interest income -- -- 2,874,198
Dividends on common stock
of Browning-Ferris
Industries, Inc. -- 2,016,375 2,016,375
Dividends & gain distributions
on equity investments 869,329 -- 3,674,606
----------- ----------- ------------
(459,518) 9,014,074 10,710,842
----------- ----------- ------------
Contributions -
Employer -- 9,728,505 9,728,505
Employee 4,996,447 4,964,273 28,779,643
----------- ----------- ------------
4,996,447 14,692,778 38,508,148
----------- ----------- ------------
Total additions 4,536,929 23,706,852 49,218,990
----------- ----------- ------------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Distributions to
participants 1,539,629 6,849,601 17,389,177
Administrative expenses 9,052 2,827 297,765
----------- ----------- ------------
Total deductions 1,548,681 6,852,428 17,686,942
----------- ----------- ------------
TRANSFERS BETWEEN FUNDS 347,895 (263,934) --
----------- ----------- ------------
Net increase 3,336,143 16,590,490 31,532,048
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 19,409,981 73,416,625 183,397,278
----------- ----------- ------------
End of year $22,746,124 $90,007,115 $214,929,326
=========== =========== ============
((A) on following page)
-20-
<PAGE> 21
- ---------------------------------------------------------------------------
ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE
FOR BENEFITS TO INVESTMENT PROGRAMS
YEAR ENDED DECEMBER 31, 1994 (Continued)
- ---------------------------------------------------------------------------
(A) The following table separately identifies participant-directed and non
participant-directed Changes in Net Assets Available for Benefits of Fund 5:
Non
Participant- Participant-
Directed Directed Total
------------ ------------ -----------
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment income -
Net appreciation in fair
value of investments $ 2,582,557 $ 4,415,142 $ 6,997,699
Dividends on common stock
of Browning-Ferris
Industries, Inc. 720,305 1,296,070 2,016,375
----------- ----------- -----------
3,302,862 5,711,212 9,014,074
----------- ----------- -----------
Contributions 4,964,273 9,728,505 14,692,778
----------- ----------- -----------
Total additions 8,267,135 15,439,717 23,706,852
----------- ----------- -----------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Distributions to participants 2,837,766 4,011,835 6,849,601
Administrative expenses 2,207 620 2,827
----------- ----------- -----------
Total deductions 2,839,973 4,012,455 6,852,428
----------- ----------- -----------
TRANSFERS BETWEEN FUNDS (263,934) -- (263,934)
----------- ----------- -----------
Net increase 5,163,228 11,427,262 16,590,490
NET ASSETS AVAILABLE FOR
BENEFITS:
Beginning of year 26,718,039 46,698,586 73,416,625
----------- ----------- -----------
End of year $31,881,267 $58,125,848 $90,007,115
=========== =========== ===========
-21-
<PAGE> 22
SCHEDULE I
----------
BFI EMPLOYEE STOCK OWNERSHIP AND SAVINGS PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1995
- -----------------------------------------------------------------------------
Number of Cost/
Shares or Contract Current
Identity of Issue/Description Units Value Value
- ----------------------------------------------------------------------------
Common Stock of Browning-Ferris
Industries, Inc. * 3,421,261 $ 85,222,264 $100,499,553
------------ ------------
Equity Investment Funds:
Fidelity Growth and Income
Portfolio * 1,657,124 36,139,090 44,825,201
Fidelity Balanced Fund * 2,169,317 27,656,893 29,329,172
Fidelity Growth Company Fund * 1,038,498 30,894,102 37,687,087
------------ ------------
Total Equity Investment Funds 94,690,085 111,841,460
------------ ------------
Guaranteed Investment Contracts (a):
Protective Life GIC,
01/31/98, 7.58% 2,457,334 2,564,160
CNA Insurance Company GIC,
01/31/98, 7.59% 3,266,045 3,402,001
Metropolitan Life Insurance GIC,
04/30/96, 8.10% 3,597,060 3,629,106
Pacific Mutual Life Insurance GIC,
08/29/97, 6.32% 2,459,357 2,496,341
Lincoln National Life Insurance GIC,
04/30/97, 6.55% 3,666,075 3,723,495
Peoples Security Life GIC,
04/30/98, 4.60% 2,204,038 2,165,916
Provident Life GIC,
04/30/98, 4.59% 1,990,147 1,940,212
Sun Life of Canada GIC,
01/31/98, 5.72% 3,417,796 3,445,679
John Hancock Mutual GIC,
03/31/99, 7.68% 4,022,187 4,300,449
Combined Insurance GIC,
07/30/98, 7.76% 3,545,491 3,752,767
New York Life GIC,
07/30/99, 7.13% 5,234,435 5,535,452
Principal Mutual GIC,
01/31/2000, 7.15% 3,783,628 4,019,955
Safeco Life Insurance GIC,
10/30/98, 6.18% 2,724,946 2,775,653
Sunamerica Life Insurance GIC,
07/30/97, 7.00% 2,615,184 2,675,390
Transamerican Life & Annuity GIC,
01/31/2000, 6.08% 1,513,400 1,539,343
------------ ------------
Total Guaranteed Investment
Contracts 46,497,123 47,965,919
------------ ------------
-22-
<PAGE> 23
SCHEDULE I
----------
BFI EMPLOYEE STOCK OWNERSHIP AND SAVINGS PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1995 (Continued)
- -----------------------------------------------------------------------------
Number of Cost/
Shares or Contract Current
Identity of Issue/Description Units Value Value
- ----------------------------------------------------------------------------
Other Investment Contracts (a):
Peoples Security Life Asset
Backed Security, 07/07/98 2,712,898 2,798,037
Peoples Security Life Mortgage
Backed Security, 11/15/2000 2,394,108 2,490,097
------------ ------------
5,107,006 5,288,134
------------ ------------
Other Investments:
Fidelity Short Term
Investment Fund * 2,159,729 2,159,729
------------ ------------
Total Assets Held for
Investment Purposes $233,676,207 $267,754,795
============ ============
* Party in Interest
(a) These amounts are recorded at contract value in the
accompanying financial statements.
-23-
<PAGE> 24
SCHEDULE II
-----------
BFI EMPLOYEE STOCK OWNERSHIP AND SAVINGS PLAN
SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
The following table presents series of transactions which were greater
than 5% of the Plan's assets as of January 1, 1995:
Purchase Selling Cost of
Description Price *(a) Price * (a) Asset Net Gain
- ----------- ----------- ----------- ----------- -----------
Common Stock of
Browning-Ferris
Industries, Inc. $21,008,041 $10,417,821 $ 8,210,031 $2,207,790
Fidelity Balanced
Fund 6,711,212 4,259,726 4,180,223 79,503
Fidelity Growth and
Income Portfolio 11,209,630 4,047,234 3,577,878 469,356
Fidelity Growth
Company Fund 10,907,786 3,140,846 2,735,218 405,628
Fidelity Short Term
Investment Fund 33,974,742 32,148,686 32,148,686 --
* Expenses incurred are netted against purchase/selling price,
as applicable.
(a) Amounts represent current value at the date of transaction.
-24-
<PAGE> 25
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation by
reference of our report dated June 20, 1996 included in this Annual Report on
Form 11-K, into the Browning-Ferris Industries, Inc. previously filed Form S-8
Registration Statement File No. 33-56583.
ARTHUR ANDERSEN LLP
Houston, Texas
June 20, 1996
-25-
<PAGE> 26
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934,
the Benefits Administration Committee, which administers the employee benefit
plan, has duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
BFI EMPLOYEE STOCK OWNERSHIP
AND SAVINGS PLAN
June 20, 1996 /s/ Gerald K. Burger
---------------------------------
Gerald K. Burger
/s/ Jeffrey E. Curtiss
---------------------------------
Jeffey E. Curtiss
/s/ Ronald E. Long
---------------------------------
Ronald E. Long
/s/ J. Gregory Muldoon
---------------------------------
J. Gregory Muldoon
/s/ Bruce E. Ranck
---------------------------------
Bruce E. Ranck
/s/ Craig W. Wasserman
---------------------------------
Craig W. Wasserman
The Members of the Benefits Administration Committee
