<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
For the fiscal year ended December 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
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, 1996 and 1995, 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, 1996 and 1995, 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, 1996 and reportable
transactions for the year ended December 31, 1996 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 24, 1997
-2-
<PAGE> 3
BFI EMPLOYEE STOCK OWNERSHIP AND SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
December 31,
------------------------------
1996 1995
------------- ------------
<S> <C> <C>
ASSETS:
Investments, at fair value -
Common stock of Browning-Ferris
Industries, Inc. $100,451,500 $100,499,553
Equity investment funds 141,433,700 111,841,460
Other investments 2,452,695 2,159,729
------------ ------------
244,337,895 214,500,742
------------ ------------
Investments, at contract value -
Guaranteed investment contracts 52,011,824 46,497,123
Other investment contracts 5,095,160 5,107,006
------------ ------------
57,106,984 51,604,129
------------ ------------
301,444,879 266,104,871
------------ ------------
Receivables -
Employer contribution 1,361,386 983,793
Employee contributions 3,935,981 2,867,186
Dividends receivable 646,552 580,392
------------ ------------
5,943,919 4,431,371
------------ ------------
307,388,798 270,536,242
------------ ------------
LIABILITIES:
Accrued expenses 92,576 68,828
Distributions payable 144,884 --
------------ ------------
237,460 68,828
------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS $307,151,338 $270,467,414
============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
-3-
<PAGE> 4
BFI EMPLOYEE STOCK OWNERSHIP AND SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------
For the Years Ended December 31,
--------------------------------
1996 1995
------------ ------------
<S> <C> <C>
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment income -
Net appreciation in fair
value of investments $ 1,500,373 $ 21,554,215
Interest income 3,592,632 3,316,942
Dividends on common stock
of Browning-Ferris
Industries, Inc. 2,489,968 2,257,672
Dividends and gain
distributions on equity
investment funds 6,501,077 5,001,087
------------ ------------
14,084,050 32,129,916
------------ ------------
Contributions -
Employer 12,239,687 10,886,898
Employee 36,238,952 33,826,941
------------ ------------
48,478,639 44,713,839
------------ ------------
Total additions 62,562,689 76,843,755
------------ ------------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Distributions to participants 25,590,156 21,064,025
Administrative expenses 288,609 241,642
------------ ------------
Total deductions 25,878,765 21,305,667
------------ ------------
Net increase 36,683,924 55,538,088
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 270,467,414 214,929,326
------------ ------------
End of year $307,151,338 $270,467,414
============ ============
</TABLE>
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 -
During 1996, the Plan was amended to (i) allow participants who have
reached age 55 to transfer the total balance associated with the Company's
matching contributions from BFI Common Stock to other funds, and (ii) allow
participants who have reached age 65 and continue to be employed by the Company
to receive distributions from their account. There were no other significant
amendments to the Plan during the period January 1, 1995 through December 31,
1996.
Investment programs -
The following details the investment options available to each Plan
participant:
Fund 1 Fixed Income 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 more than twenty-five
percent of a participant's contributions can be invested in Fund 5. A
participant may contribute up to five
-5-
<PAGE> 6
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. During 1996, the Plan
was amended to allow participants who have reached age 55 to transfer the total
balance associated with the Company's matching contributions from BFI Common
Stock to other funds.
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. During
1996, the Plan was amended to allow participants who have reached age 65 and
continue to be employed by the Company to receive distributions from their
account. 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
-6-
<PAGE> 7
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, 1996 and 1995 was less than 2% of net assets available for
benefits for each of the two years.
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 estimated fair value
of these investments was $57,684,416 and $53,254,053 as of December 31, 1996
and 1995, 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, 1996 and 1995, the crediting interest rate for
the Fixed Income Fund was 6.30% and 6.46%, respectively. The average yields of
this fund were 6.58% and 6.76% for the years ended December 31, 1996 and 1995,
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.
-7-
<PAGE> 8
(4) Federal income taxes -
The Plan obtained its latest determination letter on November 13, 1996, 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 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.
<TABLE>
<CAPTION>
-------------------------------------------------
December 31, 1996 December 31, 1995
-------------------------------------------------
Number of Number of
Shares Fair Value/ Shares Fair Value/
or Contract or Contract
Units Value Units Value
----------------------- -----------------------
<S> <C> <C> <C> <C>
Common Stock of
Browning-Ferris
Industries, Inc. 3,826,724 $100,451,500 3,421,261 $100,499,553
------------ ------------
Equity Investment Funds -
Fidelity Growth
and Income
Portfolio 1,949,856 59,919,075 1,657,124 44,825,201
Fidelity Balanced
Fund 2,270,275 31,965,474 2,169,317 29,329,172
Fidelity Growth
Company Fund 1,224,645 49,549,151 1,038,498 37,687,087
------------ ------------
141,433,700 111,841,460
------------ ------------
Short Term Investment
Funds 2,452,695 2,159,729
------------ ------------
Guaranteed Investment
Contracts 52,011,824 46,497,123
------------ ------------
Other Investment Contracts 5,095,160 5,107,006
------------ ------------
Total $301,444,879 $266,104,871
============ ============
</TABLE>
-8-
<PAGE> 9
During 1996 and 1995, the Plan's investments (including investments
bought, sold and held during the year) appreciated (depreciated) in value as
follows:
<TABLE>
<CAPTION>
-----------------------------
1996 1995
------------ -----------
<S> <C> <C>
Common Stock of Browning-Ferris
Industries, Inc. $(11,190,841) $ 2,274,127
Equity Investment Funds 12,691,214 19,280,088
------------ -----------
Net Appreciation $ 1,500,373 $21,554,215
============ ===========
</TABLE>
-9-
<PAGE> 10
(6) 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, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Fund 3
Fund 1 Fund 2 Fidelity
Fixed Fidelity Growth and
Income Balanced Income
Fund Fund Portfolio
- ----------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investments, at fair value -
Common stock of Browning-
Ferris Industries, Inc. $ -- $ -- $ --
Equity investment funds -- 31,965,474 59,919,075
Other investments 2,452,695 -- --
----------- ----------- -----------
2,452,695 31,965,474 59,919,075
----------- ----------- -----------
Investments, at contract value -
Guaranteed investment
contracts 52,011,824 -- --
Other investment contracts 5,095,160 -- --
----------- ----------- -----------
57,106,984 -- --
----------- ----------- -----------
59,559,679 31,965,474 59,919,075
----------- ----------- -----------
Receivables -
Employer contribution -- -- --
Employee contributions 927,722 540,550 928,916
Dividends receivable -- -- --
----------- ----------- -----------
927,722 540,550 928,916
----------- ----------- -----------
60,487,401 32,506,024 60,847,991
----------- ----------- -----------
LIABILITIES:
Accrued expenses 59,351 13,673 12,765
Distributions payable 22,806 17,125 49,984
----------- ----------- -----------
82,157 30,798 62,749
----------- ----------- -----------
NET ASSETS AVAILABLE FOR
BENEFITS $60,405,244 $32,475,226 $60,785,242
=========== =========== ===========
</TABLE>
(Remaining Funds and Total on following page.)
-10-
<PAGE> 11
- --------------------------------------------------------------------------------
ALLOCATION OF NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS
DECEMBER 31, 1996 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Fund 4
Fidelity Fund 5
Growth BFI
Company Common
Fund Stock (A) Total
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Investments, at fair value -
Common stock of Browning-
Ferris Industries, Inc. $ -- $100,451,500 $100,451,500
Equity investment funds 49,549,151 -- 141,433,700
Other investments -- -- 2,452,695
----------- ------------ ------------
49,549,151 100,451,500 244,337,895
----------- ------------ ------------
Investments, at contract value -
Guaranteed investment
contracts -- -- 52,011,824
Other investment contracts -- -- 5,095,160
----------- ------------ ------------
-- -- 57,106,984
----------- ------------ ------------
49,549,151 100,451,500 301,444,879
----------- ------------ ------------
Receivables -
Employer contribution -- 1,361,386 1,361,386
Employee contributions 913,790 625,003 3,935,981
Dividends receivable -- 646,552 646,552
----------- ------------ ------------
913,790 2,632,941 5,943,919
----------- ------------ ------------
50,462,941 103,084,441 307,388,798
----------- ------------ ------------
LIABILITIES:
Accrued expenses 4,363 2,424 92,576
Distributions payable 39,089 15,880 144,884
----------- ------------ ------------
43,452 18,304 237,460
----------- ------------ ------------
NET ASSETS AVAILABLE
FOR BENEFITS $50,419,489 $103,066,137 $307,151,338
=========== ============ ============
</TABLE>
((A) on following page)
-11-
<PAGE> 12
- --------------------------------------------------------------------------------
ALLOCATION OF NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS
DECEMBER 31, 1996 (Continued)
- --------------------------------------------------------------------------------
(A) The following table separately identifies participant-directed and non
participant-directed Net Assets Available for Benefits of Fund 5:
<TABLE>
<CAPTION>
Non
Participant- Participant-
Directed Directed Total
------------ ------------ -----------
<S> <C> <C> <C>
ASSETS:
Common stock of Browning-
Ferris Industries, Inc. $34,195,464 $66,256,036 $100,451,500
Contributions receivable 625,003 1,361,386 1,986,389
Dividends receivable 220,391 426,161 646,552
----------- ----------- ------------
35,040,858 68,043,583 103,084,441
----------- ----------- ------------
LIABILITIES:
Accrued expenses 2,424 -- 2,424
Distributions payable 15,880 -- 15,880
----------- ----------- -----------
18,304 -- 18,304
----------- ----------- -----------
NET ASSETS AVAILABLE FOR
BENEFITS (Fund 5) $35,022,554 $68,043,583 $103,066,137
=========== =========== ============
</TABLE>
-12-
<PAGE> 13
- --------------------------------------------------------------------------------
ALLOCATION OF NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Fund 3
Fund 1 Fund 2 Fidelity
Fixed Fidelity Growth and
Income Balanced Income
Fund Fund Portfolio
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
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 -- --
----------- ----------- -----------
51,604,129 -- --
----------- ----------- -----------
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
=========== =========== ===========
</TABLE>
(Remaining Funds and Total on following page.)
-13-
<PAGE> 14
- --------------------------------------------------------------------------------
ALLOCATION OF NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS
DECEMBER 31, 1995 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Fund 4
Fidelity Fund 5
Growth BFI
Company Common
Fund Stock (A) Total
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
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
----------- ------------ ------------
-- -- 51,604,129
----------- ------------ ------------
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
=========== ============ ============
</TABLE>
((A) on following page)
-14-
<PAGE> 15
- --------------------------------------------------------------------------------
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:
<TABLE>
<CAPTION>
Non
Participant- Participant-
Directed Directed Total
------------ ------------ ------------
<S> <C> <C> <C>
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
=========== =========== ============
</TABLE>
-15-
<PAGE> 16
- --------------------------------------------------------------------------------
ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE
FOR BENEFITS TO INVESTMENT PROGRAMS
YEAR ENDED DECEMBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Fund 3
Fund 1 Fund 2 Fidelity
Fixed Fidelity Growth and
Income Balanced Income
Fund Fund Portfolio
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment income -
Net appreciation
(depreciation) in fair
value of investments $ -- $ 1,307,023 $ 6,774,993
Interest income 3,592,632 -- --
Dividends on common stock
of Browning-Ferris
Industries, Inc. -- -- --
Dividends & gain distributions
on equity investments -- 1,425,165 2,916,806
----------- ----------- -----------
3,592,632 2,732,188 9,691,799
----------- ----------- -----------
Contributions -
Employer -- -- --
Employee 9,294,417 5,159,783 8,058,088
----------- ----------- -----------
9,294,417 5,159,783 8,058,088
----------- ----------- -----------
Total additions 12,887,049 7,891,971 17,749,887
----------- ----------- -----------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Distributions to
participants 5,939,524 3,176,481 4,583,738
Administrative expenses 176,966 44,094 40,544
----------- ----------- -----------
Total deductions 6,116,490 3,220,575 4,624,282
----------- ----------- -----------
TRANSFERS BETWEEN FUNDS (753,596) (1,937,738) 2,193,053
----------- ----------- -----------
Net increase 6,016,963 2,733,658 15,318,658
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 54,388,281 29,741,568 45,466,584
----------- ----------- -----------
End of year $60,405,244 $32,475,226 $60,785,242
=========== =========== ===========
</TABLE>
(Remaining Funds and Total on following page.)
-16-
<PAGE> 17
- --------------------------------------------------------------------------------
ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE
FOR BENEFITS TO INVESTMENT PROGRAMS
YEAR ENDED DECEMBER 31, 1996 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Fund 4
Fidelity Fund 5
Growth BFI
Company Common
Fund Stock (A) Total
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment income -
Net appreciation
(depreciation) in fair
value of investments $ 4,609,198 $(11,190,841) $ 1,500,373
Interest income -- -- 3,592,632
Dividends on common stock
of Browning-Ferris
Industries, Inc. -- 2,489,968 2,489,968
Dividends & gain
distributions on equity
investments 2,159,106 -- 6,501,077
----------- ------------ ------------
6,768,304 (8,700,873) 14,084,050
----------- ------------ ------------
Contributions -
Employer -- 12,239,687 12,239,687
Employee 7,859,779 5,866,885 36,238,952
----------- ------------ ------------
7,859,779 18,106,572 48,478,639
----------- ------------ ------------
Total additions 14,628,083 9,405,699 62,562,689
----------- ------------ ------------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Distributions to
participants 3,806,517 8,083,896 25,590,156
Administrative expenses 15,659 11,346 288,609
----------- ------------ ------------
Total deductions 3,822,176 8,095,242 25,878,765
----------- ------------ ------------
TRANSFERS BETWEEN FUNDS 1,290,701 (792,420) --
----------- ------------ ------------
Net increase 12,096,608 518,037 36,683,924
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 38,322,881 102,548,100 270,467,414
----------- ------------ ------------
End of year $50,419,489 $103,066,137 $307,151,338
=========== ============ ============
</TABLE>
((A) on following page)
-17-
<PAGE> 18
- --------------------------------------------------------------------------------
ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE
FOR BENEFITS TO INVESTMENT PROGRAMS
YEAR ENDED DECEMBER 31, 1996 (Continued)
- --------------------------------------------------------------------------------
(A) The following table separately identifies participant-directed and non
participant-directed Changes in Net Assets Available for Benefits of Fund 5:
<TABLE>
<CAPTION>
Non
Participant- Participant-
Directed Directed Total
------------ ------------ ------------
<S> <C> <C> <C>
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment income -
Net depreciation in fair
value of investments $(3,748,520) $(7,442,321) $(11,190,841)
Dividends on common
stock of Browning-
Ferris Industries,
Inc. 851,196 1,638,772 2,489,968
----------- ------------ ------------
(2,897,324) (5,803,549) (8,700,873)
----------- ------------ ------------
Contributions 5,866,885 12,239,687 18,106,572
----------- ------------ ------------
Total additions 2,969,561 6,436,138 9,405,699
----------- ------------ ------------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Distributions to
participants 3,076,413 5,007,483 8,083,896
Administrative expenses 4,635 6,711 11,346
----------- ----------- ------------
Total deductions 3,081,048 5,014,194 8,095,242
----------- ----------- ------------
TRANSFERS BETWEEN FUNDS (452,018) (340,402) (792,420)
----------- ----------- ------------
Net increase(decrease) (563,505) 1,081,542 518,037
NET ASSETS AVAILABLE FOR
BENEFITS:
Beginning of year 35,586,059 66,962,041 102,548,100
----------- ----------- ------------
End of year $35,022,554 $68,043,583 $103,066,137
=========== =========== ============
</TABLE>
-18-
<PAGE> 19
- --------------------------------------------------------------------------------
ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE
FOR BENEFITS TO INVESTMENT PROGRAMS
YEAR ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Fund 3
Fund 1 Fund 2 Fidelity
Fixed Fidelity Growth and
Income Balanced Income
Fund Fund Portfolio
- ----------------------------------------------------------------------------
<S> <C> <C> <C>
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
=========== =========== ===========
</TABLE>
(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, 1995 (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Fund 4
Fidelity Fund 5
Growth BFI
Company Common
Fund Stock (A) Total
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
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
=========== ============ ============
</TABLE>
((A) on following page)
-20-
<PAGE> 21
- --------------------------------------------------------------------------------
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:
<TABLE>
<CAPTION>
Non
Participant- Participant-
Directed Directed Total
------------ ------------ -----------
<S> <C> <C> <C>
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
=========== =========== ============
</TABLE>
-21-
<PAGE> 22
SCHEDULE I
BFI EMPLOYEE STOCK OWNERSHIP AND SAVINGS PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1996
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------
Number of Cost/ Current/
Shares or Contract Contract
Identity of Issue/Description Units Value Value
- ----------------------------------------------------------------------------
<S> <C> <C> <C>
Common Stock of Browning-Ferris
Industries, Inc. * 3,826,724 $ 97,165,675 $100,451,500
------------ ------------
Equity Investment Funds:
Fidelity Growth and Income
Portfolio * 1,949,856 45,714,373 59,919,075
Fidelity Balanced Fund * 2,270,275 29,220,788 31,965,474
Fidelity Growth Company Fund * 1,224,645 39,155,252 49,549,151
------------ ------------
Total Equity Investment Funds 114,090,413 141,433,700
------------ ------------
Guaranteed Investment Contracts (a):
Protective Life GIC,
01/31/98, 7.58% 2,644,129 2,644,129
CNA Insurance Company GIC,
01/31/98, 7.59% 3,513,992 3,513,992
Pacific Mutual Life Insurance GIC,
08/29/97, 6.32% 2,614,788 2,614,788
Lincoln National Life Insurance GIC,
04/30/97, 6.55% 3,906,203 3,906,203
Peoples Security Life GIC,
04/30/98, 4.60% 2,305,567 2,305,567
Provident Life GIC,
04/30/98, 4.59% 2,081,516 2,081,516
Sun Life of Canada GIC,
01/31/98, 5.72% 3,613,294 3,613,294
John Hancock Mutual GIC,
03/31/99, 7.68% 4,331,091 4,331,091
Combined Insurance GIC,
07/30/98, 7.76% 3,820,622 3,820,622
New York Life GIC,
07/30/99, 7.13% 5,607,735 5,607,735
Principal Mutual GIC,
01/31/2000, 7.15% 4,054,554 4,054,554
Safeco Life Insurance GIC,
10/30/98, 6.18% 2,892,882 2,892,882
Sunamerica Life Insurance GIC,
07/30/97, 7.00% 2,798,204 2,798,204
Transamerican Life & Annuity GIC,
01/31/2000, 6.08% 2,666,422 2,666,422
Ohio National Life Insurance GIC,
01/31/2000, 6.52% 2,355,145 2,355,145
United of Omaha GIC
04/30/97, 6.00% 2,805,680 2,805,680
------------ ------------
Total Guaranteed Investment Contracts 52,011,824 52,011,824
------------ ------------
</TABLE>
-22-
<PAGE> 23
SCHEDULE I
BFI EMPLOYEE STOCK OWNERSHIP AND SAVINGS PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1996 (Continued)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------
Number of Cost/ Current/
Shares or Contract Contract
Identity of Issue/Description Units Value Value
- ----------------------------------------------------------------------------
<S> <C> <C>
Other Investment Contracts (a):
Peoples Security Life Asset
Backed Security, 07/07/98 2,674,845 2,674,845
Peoples Security Life Mortgage
Backed Security, 11/15/2000 2,420,315 2,420,315
------------ ------------
5,095,160 5,095,160
------------ ------------
Other Investments:
Fidelity Short Term
Investment Fund * 2,452,695 2,452,695
------------ ------------
Total Assets Held for
Investment Purposes $270,815,767 $301,444,879
============ ============
</TABLE>
* 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, 1996
The following table presents series of transactions which were greater
than 5% of the Plan's assets as of January 1, 1996:
<TABLE>
<CAPTION>
Purchase Selling Cost of
Description Price *(a) Price * (a) Asset Net Gain
- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Common Stock of
Browning-Ferris
Industries, Inc. $21,198,027 $10,054,815 $ 9,254,616 $ 800,199
Fidelity Growth and
Income Portfolio 14,488,868 6,169,988 4,913,585 1,256,403
Fidelity Growth
Company Fund 12,546,962 5,294,096 4,285,812 1,008,284
Fidelity Short Term
Investment Fund 17,283,958 17,105,692 17,105,692 --
</TABLE>
* 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 24, 1997 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 24, 1997
-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 24, 1997 /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
-26-
