SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year Ended December 31, 1994
_________________
CUMMINS ENGINE COMPANY, INC.
(Name of issuer of the securities held pursuant to the plan)
Commission File Number 1-4949.
_______
Incorporated in the State of Indiana I.R.S. Employer Identification
No. 35-0257090
500 Jackson Street, Box 3005, Columbus, Indiana 47202-3005
(Address of Principal Executive Office)
Telephone Number: (812) 377-5000
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
(Full title of the plan)
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
INDEX TO FINANCIAL STATEMENTS
Pages
_____
Report of Independent Public Accountants 3
Combining Statements of Net Assets by Plan 4-7
Combining Statements of Changes in Net Assets by Plan 8-11
Combining Statements of Net Assets by Fund 12-17
Combining Statements of Changes in Net Assets by Fund 18-23
Notes to Financial Statements 24-29
Signature 37
Schedules
_________
Schedule I - Assets Held for Investment Purposes 30-32
Schedule II - Reportable Transactions 33
Schedule III - Matching Contribution Formulas 34-36
Exhibit
_______
23 - Consent of Independent Public Accountants
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
________________________________________
To the Pension Policy Committee
of Cummins Engine Company, Inc.:
We have audited the accompanying combining statements of net assets
by plan and by fund, of the CUMMINS ENGINE COMPANY, INC. AND
AFFILIATES RETIREMENT AND SAVINGS PLANS as of December 31, 1994 and
1993, and the related statements of changes in net assets by plan
and by fund, for the years ended December 31, 1994 and 1993. These
financial statements and the schedules referred to below are the
responsibility of the Plan's management. 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 of the Plans as of
December 31, 1994 and 1993, and the changes in the net assets for
the years ended December 31, 1994 and 1993, in conformity with
generally accepted accounting principles.
Our audits were performed 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, reportable
transactions and matching contribution formulas are presented for
the purpose 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
Chicago, Illinois
June 9, 1995.
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF NET ASSETS BY PLAN
DECEMBER 31, 1994
Salaried Bargaining Onan
____________ ____________ ____________
Assets
______
Cash and investments:
The Northern Trust Company
Short-Term Investment Fund $ 864,862 $ - $ -
Cummins Engine Company, Inc.
Fixed Income Fund 83,459,484 105,127,676 17,531,029
Vanguard Wellington Fund 49,907,017 29,285,706 15,810,805
Vanguard U.S. Growth Fund 18,623,556 5,619,719 5,915,367
Vanguard Index Trust Fund 24,002,785 9,948,550 7,764,266
Vanguard Explorer Fund 2,692,444 712,074 458,268
Vanguard International Fund 6,524,522 1,922,256 1,432,810
Cummins Engine Company, Inc.
Common Stock 114,494,782 7,868,558 2,749,142
Participant Loans 5,130,460 3,772,332 1,582,428
___________ ___________ __________
Total cash & investments 305,699,912 164,256,871 53,244,115
___________ ___________ __________
Receivables:
Employer contributions 3,644,360 1,486,954 293,845
Employee contributions 1,690,559 1,263,478 608,717
Employee loan repayments 245,107 213,310 115,543
Accrued interest 2,918 - -
___________ __________ __________
Total receivables 5,582,944 2,963,742 1,018,105
___________ ___________ __________
Total assets 311,282,856 167,220,613 54,262,220
___________ ___________ __________
Liabilities
____________
Interest payable 2,935,151 - -
Note payable - ESOP 69,450,000 - -
___________ ___________ __________
Total liabilities 72,385,151 - -
___________ ___________ __________
Net Assets $238,897,705 $167,220,613 $ 54,262,220
____________ ____________ ____________
____________ ____________ ____________
The accompanying notes are an integral part of these statements.
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF NET ASSETS BY PLAN
DECEMBER 31, 1994
Lubricon CDC Total
____________ ____________ ____________
Assets
______
Cash and investments:
The Northern Trust Company
Short-Term Investment Fund $ - $ - $ 864,862
Cummins Engine Company, Inc.
Fixed Income Fund 87,659 5,658,121 211,863,969
Vanguard Wellington Fund 67,539 2,653,124 97,724,191
Vanguard U.S. Growth Fund 30,240 1,114,166 31,303,048
Vanguard Index Trust Fund 45,034 1,517,919 43,278,554
Vanguard Explorer Fund 9,878 148,461 4,021,125
Vanguard International Fund 64,833 321,374 10,265,795
Cummins Engine Company, Inc.
Common Stock 13,153 825,247 125,950,882
Participant Loans 24,285 858,952 11,368,457
___________ ___________ __________
Total cash & investments 342,621 13,097,364 536,640,883
___________ ___________ ___________
Receivables:
Employer contributions 20,182 516,902 5,962,243
Employee contributions 4,578 213,246 3,780,578
Employee loan repayments 1,270 65,509 640,739
Accrued interest - - 2,918
___________ __________ __________
Total receivables 26,030 795,657 10,386,478
___________ __________ ___________
Total assets 368,651 13,893,021 547,027,361
___________ ___________ ___________
Liabilities
___________
Interest payable - - 2,935,151
Note payable - ESOP - - 69,450,000
___________ ___________ __________
Total liabilities - - 72,385,151
___________ ___________ __________
Net Assets $ 368,651 $ 13,893,021 $474,642,210
____________ ____________ ____________
____________ ____________ ____________
The accompanying notes are an integral part of these statements.
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF NET ASSETS BY PLAN
DECEMBER 31, 1993
Salaried Bargaining Onan
____________ ____________ ____________
Assets
______
Cash and investments:
The Northern Trust Company
Short-Term Investment Fund $ 328,685 $ - $ -
Cummins Engine Company, Inc.
Fixed Income Fund 72,788,095 93,361,040 15,691,005
Vanguard Wellington Fund 55,003,648 32,495,620 15,820,919
Vanguard U.S. Growth Fund 17,586,368 5,620,077 5,283,722
Vanguard Index Trust Fund 24,009,361 10,301,987 7,058,607
Vanguard Explorer Fund - - -
Vanguard International Fund - - -
Cummins Engine Company, Inc.
Common Stock 131,980,775 6,035,210 1,543,540
Participant Loans 5,130,161 3,517,829 1,599,264
___________ ___________ __________
Total cash & investments 306,827,093 151,331,763 46,997,057
___________ ___________ ___________
Receivables:
Employer contributions 4,097,201 1,457,591 265,993
Employee contributions 1,516,057 1,230,214 535,889
Employee loan repayments 214,921 147,118 82,807
Accrued interest 523 - -
___________ __________ __________
Total receivables 5,828,702 2,834,923 884,689
___________ ___________ __________
Total assets 312,655,795 154,166,686 47,881,746
___________ ___________ __________
Liabilities
___________
Interest payable 3,094,470 - -
Note payable - ESOP 70,650,000 - -
___________ ___________ __________
Total liabilities 73,744,470 - -
___________ ___________ __________
Net Assets $238,911,325 $154,166,686 $ 47,881,746
____________ ____________ ____________
____________ ____________ ____________
The accompanying notes are an integral part of these statements.
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF NET ASSETS BY PLAN
DECEMBER 31, 1993
Lubricon CDC Total
____________ ____________ ____________
Assets
______
Cash and investments:
The Northern Trust Company
Short-Term Investment Fund $ - $ - $ 328,685
Cummins Engine Company, Inc.
Fixed Income Fund 103,310 4,950,119 186,893,569
Vanguard Wellington Fund 161,980 2,769,269 106,251,436
Vanguard U.S. Growth Fund 48,042 1,050,410 29,588,619
Vanguard Index Trust Fund 38,593 1,616,380 43,024,928
Vanguard Explorer Fund - - -
Vanguard International Fund - - -
Cummins Engine Company, Inc.
Common Stock 9,669 610,445 140,179,639
Participant Loans 12,143 746,443 11,005,840
___________ __________ ___________
Total cash & investments 373,737 11,743,066 517,272,716
___________ __________ ___________
Receivables:
Employer contributions 18,216 563,986 6,402,987
Employee contributions 1,568 153,169 3,436,897
Employee loan repayments 227 30,371 475,444
Accrued interest - - 523
___________ __________ ___________
Total receivables 20,011 747,526 10,315,851
___________ __________ ___________
Total assets 393,748 12,490,592 527,588,567
___________ ___________ ___________
Liabilities
___________
Interest payable - - 3,094,470
Note payable - ESOP - - 70,650,000
___________ ___________ ___________
Total liabilities - - 73,744,470
___________ ___________ ___________
Net Assets $ 393,748 $ 12,490,592 $453,844,097
____________ ____________ ____________
____________ ____________ ____________
The accompanying notes are an integral part of these statements.
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF CHANGES IN NET ASSETS BY PLAN
DECEMBER 31, 1994
Salaried Bargaining Onan
____________ ____________ ____________
Net assets-beginning of year $238,911,325 $154,166,686 $ 47,881,746
____________ ____________ ____________
Investment income:
Fund investment income (loss) 5,234,515 6,033,655 1,167,475
Interest income 12,658 - -
Dividend income 1,439,965 - -
Net realized & unrealized
appreciation in the
value of investments (19,687,908) - -
___________ ___________ __________
Total investment income (13,000,770) 6,033,655 1,167,475
Less: administrative expense 86,300 44,753 7,463
interest expense 5,969,352 - -
___________ ___________ __________
Net investment income (19,056,422) 5,988,902 1,160,012
___________ ___________ __________
Contributions:
Employer 6,389,432 1,533,717 298,407
Employee 20,708,446 13,125,606 6,390,058
Rollover 821,614 206,436 273,847
___________ ___________ __________
Total contributions 27,919,492 14,865,759 6,962,312
___________ ___________ __________
Participant withdrawals 8,887,419 7,640,655 2,058,325
Inter-plan transfers 10,729 (160,079) 316,475
___________ ____________ __________
Net assets - end of year $238,897,705 $167,220,613 $54,262,220
____________ ____________ ___________
____________ ____________ ___________
The accompanying notes are an integral part of these statements.
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF CHANGES IN NET ASSETS BY PLAN
DECEMBER 31, 1994
Lubricon CDC Total
____________ ____________ ____________
Net assets-beginning of year $ 393,748 $ 12,490,592 $453,844,097
___________ ___________ ___________
Investment income:
Fund investment income (loss) (25,674) 257,872 12,667,843
Interest income - - 12,658
Dividend income - - 1,439,965
Net realized & unrealized
appreciation in the
value of investments - - (19,687,908)
___________ __________ __________
Total investment income (25,674) 257,872 (5,567,442)
Less: administrative expense 37 2,409 140,962
interest expense - - 5,969,352
___________ __________ __________
Net investment income (25,711) 255,463 (11,677,756)
___________ __________ ___________
Contributions:
Employer 21,228 523,398 8,766,182
Employee 100,535 2,221,367 42,546,012
Rollover 893 17,082 1,319,872
___________ __________ __________
Total contributions 122,656 2,761,847 52,632,066
___________ __________ __________
Participant withdrawals 125,975 1,443,823 20,156,197
Inter-plan transfers 3,933 (171,058) -
____________ __________ ___________
Net assets - end of year $ 368,651 $ 13,893,021 $474,642,210
____________ ____________ ____________
____________ ____________ ____________
The accompanying notes are an integral part of these statements.
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF CHANGES IN NET ASSETS BY PLAN
DECEMBER 31, 1993
Salaried Bargaining Onan
____________ ____________ ____________
Net assets-beginning of year $174,602,862 $135,224,648 $ 39,627,555
____________ ____________ ____________
Investment income:
Fund investment income (loss) 14,731,470 12,860,279 3,761,103
Interest income 1,875 - -
Dividend income 465,492 - -
Net realized & unrealized
appreciation in the
value of investments 34,332,392 - -
___________ ___________ __________
Total investment income 49,531,229 12,860,279 3,761,103
Less: administrative expense 116,787 86,905 15,075
interest expense 6,188,940 - -
___________ ___________ __________
Net investment income 43,225,502 12,773,374 3,746,028
___________ ___________ __________
Contributions:
Employer 7,086,975 1,457,590 265,992
Employee 19,346,598 13,716,542 5,981,731
Rollover 927,680 17,157 26,321
___________ __________ __________
Total contributions 27,361,253 15,191,289 6,274,044
___________ __________ __________
Participant withdrawals 6,743,662 8,871,882 1,588,030
Inter-plan transfers 465,370 (150,743) (177,851)
____________ _____________ ____________
Net assets - end of year $238,911,325 $154,166,686 $47,881,746
____________ ____________ ___________
____________ ____________ ___________
The accompanying notes are an integral part of these statements.
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF CHANGES IN NET ASSETS BY PLAN
DECEMBER 31, 1993
Lubricon CDC Total
____________ ____________ ____________
Net assets-beginning of year $ 261,394 $ 10,389,747 $360,106,206
____________ ____________ ____________
Investment income:
Fund investment income (loss) 28,466 952,019 32,333,337
Interest income - - 1,875
Dividend income - - 465,492
Net realized & unrealized
appreciation in the
value of investments - - 34,332,392
___________ __________ __________
Total investment income 28,466 952,019 67,133,096
Less: administrative expense 95 4,887 223,749
interest expense - - 6,188,940
___________ __________ __________
Net investment income 28,371 947,132 60,720,407
___________ __________ __________
Contributions:
Employer 18,215 563,985 9,392,757
Employee 63,057 1,985,430 41,093,358
Rollover 1,100 3,076 975,334
___________ __________ __________
Total contributions 82,372 2,552,491 51,461,449
___________ __________ __________
Participant withdrawals 20,228 1,220,163 18,443,965
Inter-plan transfers 41,839 (178,615) -
____________ __________ ___________
Net assets - end of year $ 393,748 $ 12,490,592 $453,844,097
____________ ____________ ____________
____________ ____________ ____________
The accompanying notes are an integral part of these statements.
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF NET ASSETS BY FUND
DECEMBER 31, 1994
Fixed Income Wellington U.S. Growth Index Fund
____________ ___________ ___________ ___________
Assets
______
Cash and investments:
The Northern Trust Co.
Short-Term Invest. Fund $ - $ - $ - $ -
Cummins Engine Co.,Inc.
Fixed Income Fund 211,863,969 - - -
Vanguard Wellington Fund - 97,724,191 - -
Vanguard U.S. Growth Fund - - 31,303,048 -
Vanguard Index Trust Fund - - - 43,278,554
Vanguard Explorer Fund - - - -
Vanguard Intl. Fund - - - -
Cummins Engine Co., Inc.
Common Stock - - - -
Participant Loans - - - -
___________ __________ __________ __________
Total cash & investments 211,863,969 97,724,191 31,303,048 43,278,554
___________ __________ __________ __________
Receivables:
Employer contributions 1,348,208 490,978 194,415 245,236
Employee contributions 1,487,969 917,808 418,519 525,527
Employee loan repayments 251,037 171,833 68,190 85,413
Accrued interest - - - -
___________ __________ __________ __________
Total receivables 3,087,214 1,580,619 681,124 856,176
___________ __________ __________ __________
Total assets 214,951,183 99,304,810 31,984,172 44,134,730
___________ __________ __________ __________
Liabilities
___________
Interest payable - - - -
Note payable-ESOP - - - -
___________ __________ __________ __________
Total liabilities - - - -
___________ __________ __________ __________
Net Assets $214,951,183 $99,304,810 $31,984,172 $44,134,730
____________ ___________ ___________ ___________
____________ ___________ ___________ ___________
The accompanying notes are an integral part of these statements.
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF NET ASSETS BY FUND
DECEMBER 31, 1994
Explorer Fund International Cummins Stock
_____________ _____________ _____________
Assets
______
Cash and investments:
The Northern Trust Co.
Short-Term Invest. Fund $ - $ - $ -
Cummins Engine Co.,Inc.
Fixed Income Fund - - -
Vanguard Wellington Fund - - -
Vanguard U.S. Growth Fund - - -
Vanguard Index Trust Fund - - -
Vanguard Explorer Fund 4,021,125 - -
Vanguard Intl. Fund - 10,265,795 -
Cummins Engine Co., Inc.
Common Stock - - 21,946,924
Participant Loans - - -
_________ __________ __________
Total cash & investments 4,021,125 10,265,795 21,946,924
_________ __________ __________
Receivables:
Employer contributions 27,353 63,821 124,927
Employee contributions 77,512 163,456 189,787
Employee loan repayments 8,710 18,601 36,955
Accrued interest - - -
_________ __________ __________
Total receivables 113,575 245,878 351,669
_________ __________ __________
Total assets 4,134,700 10,511,673 22,298,593
_________ __________ __________
Liabilities
___________
Interest payable - - -
Note payable-ESOP - - -
_________ __________ __________
Total liabilities - - -
_________ __________ __________
Net Assets $4,134,700 $10,511,673 $22,298,593
__________ ___________ ___________
__________ ___________ ___________
The accompanying notes are an integral part of these statements.
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF NET ASSETS BY FUND
DECEMBER 31, 1994
ESOP Loan Fund Total
___________ ___________ ____________
Assets
______
Cash and investments:
The Northern Trust Co.
Short-Term Invest. Fund $ 864,862 $ - $ 864,862
Cummins Engine Co.,Inc.
Fixed Income Fund - - 211,863,969
Vanguard Wellington Fund - - 97,724,191
Vanguard U.S. Growth Fund - - 31,303,048
Vanguard Index Trust Fund - - 43,278,554
Vanguard Explorer Fund - - 4,021,125
Vanguard Intl. Fund - - 10,265,795
Cummins Engine Co., Inc.
Common Stock 104,003,958 - 125,950,882
Participant Loans - 11,368,457 11,368,457
___________ __________ ___________
Total cash & investments 104,868,820 11,368,457 536,640,883
___________ __________ ___________
Receivables:
Employer contributions 3,467,305 - 5,962,243
Employee contributions - - 3,780,578
Employee loan repayments - - 640,739
Accrued interest 2,918 - 2,918
___________ __________ ___________
Total receivables 3,470,223 - 10,386,478
___________ __________ ___________
Total assets 108,339,043 11,368,457 547,027,361
___________ __________ ___________
Liabilities
___________
Interest payable 2,935,151 - 2,935,151
Note payable-ESOP 69,450,000 - 69,450,000
___________ __________ ___________
Total liabilities 72,385,151 - 72,385,151
___________ __________ ___________
Net Assets $35,953,892 $11,368,457 $474,642,210
___________ ___________ ___________
___________ ___________ ___________
The accompanying notes are an integral part of these statements.
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF NET ASSETS BY FUND
DECEMBER 31, 1993
Fixed Income Wellington U.S. Growth Index Fund
____________ ___________ ___________ ___________
Assets
______
Cash and investments:
The Northern Trust Co.
Short-Term Invest. Fund $ - $ - $ - $ -
Cummins Engine Co.,Inc.
Fixed Income Fund 186,893,569 - - -
Vanguard Wellington Fund - 106,251,436 - -
Vanguard U.S. Growth Fund - - 29,588,619 -
Vanguard Index Trust Fund - - - 43,024,928
Vanguard Explorer Fund - - - -
Vanguard Intl. Fund - - - -
Cummins Engine Co., Inc.
Common Stock - - - -
Participant Loans - - - -
___________ ___________ __________ __________
Total cash & investments 186,893,569 106,251,436 29,588,619 43,024,928
___________ ___________ __________ __________
Receivables:
Employer contributions 1,190,247 588,278 231,420 281,703
Employee contributions 1,236,581 1,023,772 483,362 536,243
Employee loan repayments 177,061 134,471 66,545 68,818
Accrued interest - - - -
___________ __________ __________ __________
Total receivables 2,603,889 1,746,521 781,327 886,764
___________ __________ __________ __________
Total assets 189,497,458 107,997,957 30,369,946 43,911,692
___________ ___________ __________ __________
Liabilities
___________
Interest payable - - - -
Note payable-ESOP - - - -
___________ ___________ __________ __________
Total liabilities - - - -
___________ ___________ __________ __________
Net Assets $189,497,458 $107,997,957 $30,369,946 $43,911,692
____________ ___________ ___________ ___________
____________ ___________ ___________ ___________
The accompanying notes are an integral part of these statements.
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF NET ASSETS BY FUND
DECEMBER 31, 1993
Explorer Fund International Cummins Stock
_____________ _____________ _____________
Assets
______
Cash and investments:
The Northern Trust Co.
Short-Term Invest. Fund $ - $ - $ -
Cummins Engine Co.,Inc.
Fixed Income Fund - - -
Vanguard Wellington Fund - - -
Vanguard U.S. Growth Fund - - -
Vanguard Index Trust Fund - - -
Vanguard Explorer Fund - - -
Vanguard Intl. Fund - - -
Cummins Engine Co., Inc.
Common Stock - - 15,200,731
Participant Loans - - -
_________ __________ __________
Total cash & investments - - 15,200,731
_________ __________ __________
Receivables:
Employer contributions - - 116,869
Employee contributions - - 156,939
Employee loan repayments - - 28,549
Accrued interest - - -
_________ __________ _________
Total receivables - - 302,357
_________ __________ __________
Total assets - - 15,503,088
_________ __________ __________
Liabilities
___________
Interest payable - - -
Note payable-ESOP - - -
_________ __________ __________
Total liabilities - - -
_________ __________ __________
Net Assets $ - $ - $15,503,088
__________ ___________ ___________
__________ ___________ ___________
The accompanying notes are an integral part of these statements.
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF NET ASSETS BY FUND
DECEMBER 31, 1993
ESOP Loan Fund Total
___________ ___________ ____________
Assets
______
Cash and investments:
The Northern Trust Co.
Short-Term Invest. Fund $ 328,685 $ - $ 328,685
Cummins Engine Co.,Inc.
Fixed Income Fund - - 186,893,569
Vanguard Wellington Fund - - 106,251,436
Vanguard U.S. Growth Fund - - 29,588,619
Vanguard Index Trust Fund - - 43,024,928
Vanguard Explorer Fund - - -
Vanguard Intl. Fund - - -
Cummins Engine Co., Inc.
Common Stock 124,978,908 - 140,179,639
Participant Loans - 11,005,840 11,005,840
___________ __________ ___________
Total cash & investments 125,307,593 11,005,840 517,272,716
___________ __________ ___________
Receivables:
Employer contributions 3,994,470 - 6,402,987
Employee contributions - - 3,436,897
Employee loan repayments - - 475,444
Accrued interest 523 - 523
___________ __________ ___________
Total receivables 3,994,993 - 10,315,851
___________ __________ ___________
Total assets 129,302,586 11,005,840 527,588,567
___________ __________ ___________
Liabilities
___________
Interest payable 3,094,470 - 3,094,470
Note payable-ESOP 70,650,000 - 70,650,000
__________ __________ ___________
Total liabilities 73,744,470 - 73,744,470
__________ __________ ___________
Net Assets $55,558,116 $11,005,840 $453,844,097
___________ ___________ ___________
___________ ___________ ___________
The accompanying notes are an integral part of these statements.
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF CHANGES IN NET ASSETS BY FUND
DECEMBER 31, 1994
Fixed Income Wellington U.S. Growth Index
____________ ___________ ___________ ___________
Net Assets - beginning
of year $189,497,458 $107,997,957 $30,369,946 $43,911,692
____________ ____________ ___________ ___________
Investment income:
Fund investment income
(loss) 13,985,080 (644,090) 1,114,263 440,071
Interest income - - - -
Dividend income - - - -
Net realized & unrealized
appreciation in the value
of investments - - - -
___________ ___________ __________ __________
Total investment income 13,985,080 (644,090) 1,114,263 440,071
Less: admin. expense 90,191 - - -
interest expense - - - -
___________ ___________ __________ __________
Net investment income 13,894,889 (644,090) 1,114,263 440,071
___________ ___________ __________ __________
Contributions:
Employer 1,552,288 547,696 213,021 272,326
Employee 15,224,068 11,562,925 4,976,097 6,388,363
Rollover 303,713 282,269 171,042 198,830
___________ __________ __________ __________
Total contributions 17,080,069 12,392,890 5,360,160 6,859,519
___________ __________ __________ __________
Participant loan repayments 2,587,469 1,673,280 718,515 890,849
___________ __________ __________ __________
Inter-fund transfers 6,124,784 (16,307,770) (3,840,873) (5,691,398)
___________ __________ __________ __________
Payments:
Participant withdrawals 11,348,094 4,001,881 1,084,249 1,385,829
Participant loan withdrawals 2,885,392 1,805,576 653,590 890,174
__________ __________ __________ __________
Total payments 14,233,486 5,807,457 1,737,839 2,276,003
___________ __________ __________ __________
Net assets - end of year $214,951,183 $99,304,810 $31,984,172 $44,134,730
____________ ___________ ___________ ___________
____________ ___________ ___________ ___________
The accompanying notes are an integral part of these statements.
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF CHANGES IN NET ASSETS BY FUND
DECEMBER 31, 1994
Explorer International Cummins Stock
__________ _____________ _____________
Net Assets - beginning
of year $ 0 $ 0 $15,503,088
__________ ___________ ___________
Investment income:
Fund investment income
(loss) 2,595 (59,464) (2,170,612)
Interest income - - -
Dividend income - - -
Net realized & unrealized
appreciation in the value
of investments - - -
__________ ____________ ____________
Total investment income 2,595 (59,464) (2,170,612)
Less: admin. expense - - -
interest expense - - -
__________ ____________ ____________
Net investment income 2,595 (59,464) (2,170,612)
__________ ____________ ____________
Contributions:
Employer 28,786 66,478 133,691
Employee 646,563 1,615,587 2,132,409
Rollover 70,492 110,793 182,733
__________ ___________ ___________
Total contributions 745,841 1,792,858 2,448,833
__________ ___________ ___________
Participant loan repayments 69,998 181,036 400,109
__________ ___________ ___________
Inter-fund transfers 3,432,807 8,913,648 7,368,802
__________ ___________ ___________
Payments:
Participant withdrawals 52,131 158,850 824,451
Participant loan withdrawals 64,410 157,555 427,176
__________ ___________ ___________
Total payments 116,541 316,405 1,251,627
__________ ___________ ___________
Net assets - end of year $4,134,700 $10,511,673 $22,298,593
__________ ___________ ___________
__________ ___________ ___________
The accompanying notes are an integral part of these statements.
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF CHANGES IN NET ASSETS BY FUND
DECEMBER 31, 1994
ESOP Loan Fund Total
___________ ___________ ____________
Net Assets - beginning
of year $55,558,116 $11,005,840 $453,844,097
___________ ___________ ____________
Investment income:
Fund investment income
(loss) - - 12,667,843
Interest income 12,658 - 12,658
Dividend income 1,439,965 - 1,439,965
Net realized & unrealized
appreciation in the value
of investments (19,687,908) - (19,687,908)
____________ ___________ _____________
Total investment income (18,235,285) - ( 5,567,442)
Less: admin. expense 50,771 - 140,962
interest expense 5,969,352 - 5,969,352
___________ ___________ _____________
Net investment income (24,255,408) - (11,677,756)
____________ ___________ ____________
Contributions:
Employer 5,951,896 - 8,766,182
Employee - - 42,546,012
Rollover - - 1,319,872
___________ ___________ ____________
Total contributions 5,951,896 - 52,632,066
___________ ___________ ____________
Participant loan repayments - (6,521,256) -
___________ ____________ ____________
Inter-fund transfers - - -
___________ ___________ ____________
Payments:
Participant withdrawals 1,300,712 - 20,156,197
Participant loan withdrawals - (6,883,873) -
___________ ____________ ____________
Total payments 1,300,712 (6,883,873) 20,156,197
___________ ____________ ____________
Net assets - end of year $35,953,892 $11,368,457 $474,642,210
___________ ___________ ____________
___________ ___________ ____________
The accompanying notes are an integral part of these statements.
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF CHANGES IN NET ASSETS BY FUND
DECEMBER 31, 1993
Fixed Income Wellington U.S. Growth Index
____________ ___________ ___________ ___________
Net Assets - beginning
of year $177,783,735 $ 78,997,524 $29,626,817 $32,861,220
____________ ____________ ___________ ___________
Investment income:
Fund investment income
(loss) 13,689,198 11,418,610 (458,290) 3,570,736
Interest income - - - -
Dividend income - - - -
Net realized & unrealized
appreciation in the value
of investments - - - -
___________ __________ ___________ __________
Total investment income 13,689,198 11,418,610 (458,290) 3,570,736
Less: admin. expense 150,447 - - -
interest expense - - - -
___________ __________ ___________ __________
Net investment income 13,538,751 11,418,610 (458,290) 3,570,736
___________ __________ ___________ __________
Contributions:
Employer 1,190,239 588,279 231,420 281,703
Employee 14,923,408 12,038,643 6,065,512 6,653,884
Rollover 172,588 309,952 191,510 217,193
___________ __________ __________ __________
Total contributions 16,286,235 12,936,874 6,488,442 7,152,780
___________ __________ __________ __________
Participant loan repayments 1,840,057 1,305,821 655,318 704,539
___________ __________ __________ __________
Inter-fund transfers (4,953,834) 8,501,670 (4,261,772) 1,616,795
____________ __________ ___________ __________
Payments:
Participant withdrawals 12,120,414 3,245,402 995,362 1,140,196
Participant loan withdrawals 2,877,072 1,917,140 685,207 854,182
___________ __________ __________ __________
Total payments 14,997,486 5,162,542 1,680,569 1,994,378
___________ ___________ __________ __________
Net assets - end of year $189,497,458 $107,997,957 $30,369,946 $43,911,692
____________ ___________ ___________ ___________
____________ ___________ ___________ ___________
The accompanying notes are an integral part of these statements.
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF CHANGES IN NET ASSETS BY FUND
DECEMBER 31, 1993
Explorer International Cummins Stock
__________ _____________ _____________
Net Assets - beginning
of year $ - $ - $11,295,812
__________ ___________ ___________
Investment income:
Fund investment income
(loss) - - 4,113,083
Interest income - - -
Dividend income - - -
Net realized & unrealized
appreciation in the value
of investments - - -
__________ ___________ ___________
Total investment income - - 4,113,083
Less: admin. expense - - 26,761
interest expense - - -
__________ ___________ ___________
Net investment income - - 4,086,322
__________ ___________ ___________
Contributions:
Employer - - 116,867
Employee - - 1,411,911
Rollover - - 84,091
__________ ___________ ___________
Total contributions - - 1,612,869
__________ ___________ ___________
Participant loan repayments - - 222,594
__________ ___________ ___________
Inter-fund transfers - - (902,859)
__________ ___________ ____________
Payments:
Participant withdrawals - - 555,065
Participant loan withdrawals - - 256,585
__________ ___________ ___________
Total payments - - 811,650
__________ ___________ ___________
Net assets - end of year - - $15,503,088
__________ ___________ ___________
__________ ___________ ___________
The accompanying notes are an integral part of these statements.
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF CHANGES IN NET ASSETS BY FUND
DECEMBER 31, 1993
ESOP Loan Fund Total
___________ ___________ ____________
Net Assets - beginning
of year $20,397,115 $ 9,143,983 $360,106,206
___________ ___________ ____________
Investment income:
Fund investment income
(loss) - - 32,333,337
Interest income 1,875 - 1,875
Dividend income 465,492 - 465,492
Net realized & unrealized
appreciation in the value
of investments 34,332,392 - 34,332,392
___________ ___________ ____________
Total investment income 34,799,759 - 67,133,096
Less: admin. expense 46,541 - 223,749
interest expense 6,188,940 - 6,188,940
___________ ___________ ____________
Net investment income 28,564,278 - 60,720,407
___________ ___________ ____________
Contributions:
Employer 6,984,249 - 9,392,757
Employee - - 41,093,358
Rollover - - 975,334
___________ ___________ ____________
Total contributions 6,984,249 - 51,461,449
___________ ___________ ____________
Participant loan repayments - (4,728,329) -
___________ ____________ ____________
Inter-fund transfers - - -
___________ ___________ ____________
Payments:
Participant withdrawals 387,526 - 18,443,965
Participant loan withdrawals - (6,590,186) -
___________ ____________ ____________
Total payments 387,526 (6,590,186) 18,443,965
___________ ____________ ____________
Net assets - end of year $55,558,116 $11,005,840 $453,844,097
___________ ___________ ____________
___________ ___________ ____________
The accompanying notes are an integral part of these statements.
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1994 AND 1993
1. SUMMARY OF THE PLAN
___________________
The Cummins Engine Company, Inc. and Affiliates Retirement and Savings
Plans are defined contribution plans that cover five employee groups (as
described in Note 2). Participants have the opportunity to make pre-tax
and after-tax contributions to the plan and can choose from seven different
investment options (investment options and details of the plans are
described in Note 2 and Note 3, respectively).
2. SUMMARY OF ACCOUNTING POLICIES
______________________________
Basis of Combination
____________________
The Combining Statements of Net Assets and Changes in Net Assets
reflect the financial activity of the Retirement and Savings Plans of
Cummins Engine Company, Inc. (the Company) and certain subsidiary companies
(the Companies). These Plans include:
Cummins Engine Company, Inc. and Affiliates Retirement and Savings Plan
for Salaried and Non-Bargaining Hourly Employees (Salaried Plan)
Cummins Engine Company, Inc. and Affiliates Retirement and Savings Plan
for Bargaining Unit Employees (Bargaining Plan)
Cummins Engine Company, Inc. Retirement and Savings Plan for Onan
Corporation Employees (Onan Plan)
Cummins Engine Company, Inc. Retirement and Savings Plan for Lubricant
Consultants, Inc. Employees (Lubricon Plan)
Cummins Engine Company, Inc. Retirement and Savings Plan for Consolidated
Diesel Company Employees (CDC Plan)
Certain reclassifications have been made in the prior year financial
statements. These reclassifications were made to conform with current year
presentations and have no impact on previously reported net assets.
Trust Arrangements
__________________
A single trust arrangement is maintained with the Trustee for the
administration of the primary investments in the Plans; however, a separate
trust arrangement is maintained with The Northern Trust Company for the
Employee Stock Ownership ("ESOP") portion of the Plans (as described in
Note 3).
Accounting Method
_________________
Accounting records are maintained by the Trustee on a modified cash
basis. All material adjustments have been made to present the financial
statements under the accrual basis of accounting as required by generally
accepted accounting principles.
All investments included in the Combining Statements of Net Assets and
Schedule I, and the investment related income included in the Combining
Statements of Changes in Net Assets reflect amounts obtained from and
certified by the respective trustees as being complete and accurate.
Investments
___________
Investments held by the Trust are stated at market value and changes in
market value are reflected in Fund investment income (loss). Quoted market
prices are used to value investments.
Assets of the Trust are segregated into seven investment funds: the
Fixed Income Fund, the Wellington Fund, the Vanguard U.S. Growth Fund, the
Index 500 Trust Fund, the Explorer Fund, the International Fund, and the
Cummins Common Stock Fund. Maintenance of separate funds provides
investment alternatives to participants in the Plans; the allocation of
investments between the funds is at the direction of participants.
The assets of the Fixed Income Fund consist primarily of insurance and
bank investment contracts. The Wellington Fund consists primarily of
equity, fixed income, and cash equivalent marketable securities. The
Vanguard U.S. Growth Fund consists primarily of long-term domestic and
foreign capital growth stock. The Vanguard Index 500 Trust Fund consists
primarily of equity and cash equivalent marketable securities whose
investment results should correspond to the performance of the Standard &
Poor's 500 Composite Stock Price (S & P 500) Index. The Explorer Fund
consists of common stocks of small companies with favorable prospects for
above-average growth in market value. The International Fund consists of a
broadly diversified portfolio of non-U.S. equity securities selected on the
basis of relative value. The Cummins Common Stock Fund consists of
investments in Company common stock. The ESOP Fund consists of matching
contributions in the form of common stock for certain plans.
Net investment income (loss) of each fund is allocated to each Plan
based on the relationship of each Plan's investment in the fund to the
total investment in the fund. Net investment income (loss) is likewise
allocated to participants based on the relationship of participant account
balances in each fund to the total balance in each fund.
Participant Loan Receivable
___________________________
The Plans permit participants to borrow portions of their accounts
subject to Department of Labor regulations. Participants may take out
loans limited to the lessor of $50,000 or 50 percent of the present value
of their accounts (excluding ESOP accounts) over a period not to exceed 54
months. The annual interest rate is the Prime Rate as quoted in the Wall
Street Journal plus 1 percent. The amount used to secure a loan is 50
percent of the participant's account balance.
Participant loan activity is reported in the Combining Statements of
Net Assets and Changes in Net Assets by Fund in the Loan Fund.
Administrative Expenses and Investment Advisory Fees
____________________________________________________
Administrative expenses such as record keeping fees are paid by the
Companies. Investment advisory fees for portfolio management of Vanguard
Funds are paid directly from fund earnings. Investment advisory fees for
the Fixed Income Fund are paid directly from the fund. The trust agreement
entitles the Trustee to receive reasonable compensation for services
rendered and expenses incurred in the administration and execution of the
Plans.
3. DESCRIPTION OF THE PLANS
________________________
Participation
_____________
Substantially all full-time, domestic employees of the Company and
designated subsidiaries are eligible to participate in one of the Plans no
later than the first day of the month following the 60th day after date of
employment. Nonresident aliens employed by the Company or a foreign
subsidiary are eligible to participate if the Company owns at least 80
percent of the foreign subsidiary's common stock.
The Plans encourage voluntary savings through regular payroll
deductions. Subject to limitations contained in the Internal Revenue Code
and Regulations, participants may contribute up to 15 percent of gross pay
(10 percent with respect to certain highly compensated participants) as pre-
tax contributions, and 10 percent of gross pay as after-tax contributions
(not to exceed 20% in total). In addition, participants are
permitted to make voluntary additional after-tax contributions once each
year.
At the end of each Plan year, the Companies make matching contributions
for each participant's pre-tax and after-tax contributions that remain in
the Plans at the end of the Plan year. The formulas for these matches, as
set forth in the Plans, vary for each Company (see Schedule III). Certain
groups of participants receive cash matches and other groups participate in
the ESOP (as described below) and receive matching contributions in the
form of Company common stock. All matching cash contributions, ESOP
shares, and earnings thereon are immediately vested and nonforfeitable.
In July 1989, the Company established the ESOP Trust and sold 2,362,206
shares of its common stock at $31.75 per share (amounts reflect two-for-one
common stock split) to the ESOP Trust in exchange for a $75 million
promissory note (the Note) secured by the shares. In December 1990, the
ESOP Trust prepaid its then-current indebtedness to the Company with
proceeds from the issuance of $72,750,000 of 8.76 percent ESOP Notes due
1998 and guaranteed by the Company (see Note 6). The arrangement requires
the Companies to contribute an aggregate annual amount to the ESOP Trust
equal to the annual principal and interest payable under the terms of the
Note after application of dividends paid on shares held in the ESOP Trust.
As the ESOP Trust's indebtedness is repaid from these sources of funds,
shares are allocated to the accounts of participants in the ESOP in
relative proportion to each participant's contributions to the Plans as
well as dividends received on shares previously allocated to the
participant's account in the ESOP Trust. For the 1994 plan year, 565,059
shares were allocated and 1,733,371 remain unallocated in the ESOP Trust.
On October 12, 1993, the Company announced a two-for-one common stock
split that was distributed on November 11, 1993, to shareholders of record
on October 25, 1993. All references to the number of shares have been
adjusted to reflect the stock split on a retroactive basis.
Participant and Company cash matching contributions are deposited in
the Trust and then invested in the seven investment funds in accordance
with participant elections. Account balances and contributions can be
invested in one or more of the seven investment funds in multiples of 1
percent. Investment direction can be changed daily. Common stock account
balances in the ESOP account cannot be redirected. Investment experience
is allocated to participant accounts on a daily basis.
Plan Withdrawals
________________
Participants are permitted to withdraw their after-tax contributions,
the Company cash matching contributions (after remaining in the account for
two full plan years) and accumulated earnings thereon. Participants are
also permitted to take out loans (see Note 2). In the event of financial
hardship, participants are permitted to withdraw pre-tax contributions and
accumulated earnings thereon. Each hardship withdrawal request, including
proof of financial hardship, is reviewed individually by the Plans'
Administrator. In-service withdrawals from the ESOP account are prohibited
under any circumstance.
Plan Payouts
____________
Upon termination of employment, immediate distribution is made to those
participants with account balances less than or equal to $3,500.
Terminating participants with account balances greater than $3,500 must
consent to any payment prior to the attainment of age 65. Participants who
do not consent to immediate distribution may subsequently elect in writing
to begin receiving benefits as soon as is practical, provided that in any
event the distribution commences no later than April 1 of the Plan year
following the Plan year in which age 70 1/2 occurs. Account balances
remaining in the Plans will continue to share in the earnings of the
investments prior to distribution. Distributions from the ESOP portion
of the Plans are in whole shares of stock allocated to participant
accounts, with cash for partial shares unless participants elect to receive
the entire distribution in cash at current market value.
4. PLAN AMENDMENTS
_______________
Effective January 1, 1995, the after-tax match for DWU-CMEP employees
(Bargaining Plan) was replaced by a pre-tax match of $1 for every $1
contributed up to 2% of gross pay and $.25 for every $1 contributed up to
the next 4% of gross pay.
5. TAX STATUS
__________
The Company has filed a request for the Internal Revenue Service to
issue favorable determination letters for the Cummins Engine Company, Inc.
and Affiliates Retirement and Savings Plans. The Plans' Administrator and
the Plans' Tax Counsel believe that the Plans are currently designed and
being operated in compliance with applicable requirements of the Internal
Revenue Code. Therefore they believe that the Plans are qualified and the
related trusts are tax exempt.
6. LONG-TERM DEBT
______________
The ESOP Trust has issued $72,750,000 of ESOP Notes due in 1998 with an
annual interest rate of 8.76 percent payable semi-annually to the Note
holders (see Note 3). Effective January 1, 1993, the interest rate on the
notes was reduced to 8.68 percent due to a tax law change. Principal
payments of $1.4 million, $1.5 million, $1.6 million and $1.7 million are
due in 1995, 1996, 1997, and 1998 respectively. The final principal
payment, $63.3 million, is due on July 15, 1998.
7. PARTIES-IN-INTEREST TRANSACTIONS
________________________________
There were no transactions with parties-in-interest (as defined in
ERISA Section 3(14) and regulations under that section) during the Plan
years ended December 31, 1994 and 1993.
<PAGE>
SCHEDULE I
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
EIN 35-0257090
ITEM 27 A: SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1994
ISSUER/DESCRIPTION SHARES COST MARKET VALUE
_______________________________ _________ ___________ ____________
Salaried:
The Northern Trust Company
Short-Term Investment Fund $ 864,862 $ 864,862
Cummins Engine Company, Inc.
Fixed Income Fund 83,459,484 83,459,484
Vanguard Wellington Fund 52,303,978 49,907,017
Vanguard U.S. Growth Fund 18,198,789 18,623,556
Vanguard Index Trust Fund 24,447,877 24,002,785
Vanguard Explorer Fund 2,812,897 2,692,444
Vanguard International Fund 6,785,218 6,524,522
Cummins Engine Company, Inc.
Common Stock 3,485,177 87,250,596 114,494,782
Participant Loans (7.0%-9.5%) 5,130,460 5,130,460
_________ ___________ ___________
3,485,177 $281,254,161 $305,699,912
_________ ___________ ___________
Bargaining:
The Northern Trust Company
Short-Term Investment Fund $ - $ -
Cummins Engine Company, Inc.
Fixed Income Fund 105,127,676 105,127,676
Vanguard Wellington Fund 30,692,256 29,285,706
Vanguard U.S. Growth Fund 5,491,544 5,619,719
Vanguard Index Trust Fund 10,133,030 9,948,550
Vanguard Explorer Fund 743,930 712,074
Vanguard International Fund 1,999,062 1,922,256
Cummins Engine Company, Inc.
Common Stock 890,109 5,996,224 7,868,558
Participant Loans (7.0%-9.5%) 3,772,332 3,772,332
_________ ___________ ___________
890,109 $163,956,054 $164,256,871
_________ ___________ ___________
Onan:
The Northern Trust Company
Short-Term Investment Fund $ - $ -
Cummins Engine Company, Inc.
Fixed Income Fund 17,531,029 17,531,029
Vanguard Wellington Fund 16,570,174 15,810,805
Vanguard U.S. Growth Fund 5,780,449 5,915,367
Vanguard Index Trust Fund 7,908,242 7,764,266
Vanguard Explorer Fund 478,770 458,268
Vanguard International Fund 1,490,060 1,432,810
Cummins Engine Company, Inc.
Common Stock 310,990 2,094,980 2,749,142
Participant Loans (7.0%-9.5%) 1,582,428 1,582,428
_________ ___________ ___________
310,990 $ 53,436,132 $ 53,244,115
_________ ___________ ___________
Lubricon:
The Northern Trust Company
Short-Term Investment Fund $ - $ -
Cummins Engine Company, Inc.
Fixed Income Fund 87,659 87,659
Vanguard Wellington Fund 70,783 67,539
Vanguard U.S. Growth Fund 29,550 30,240
Vanguard Index Trust Fund 45,869 45,034
Vanguard Explorer Fund 10,320 9,878
Vanguard International Fund 67,424 64,833
Cummins Engine Company, Inc.
Common Stock 1,492 10,023 13,153
Participant Loans (7.0%-9.5%) 24,285 24,285
_________ ___________ ___________
1,492 $ 345,913 $ 342,621
_________ ___________ ___________
CDC:
The Northern Trust Company
Short-Term Investment Fund $ - $ -
Cummins Engine Company, Inc.
Fixed Income Fund 5,658,121 5,658,121
Vanguard Wellington Fund 2,780,550 2,653,124
Vanguard U.S. Growth Fund 1,088,754 1,114,166
Vanguard Index Trust Fund 1,546,066 1,517,919
Vanguard Explorer Fund 155,103 148,461
Vanguard International Fund 334,215 321,374
Cummins Engine Company, Inc.
Common Stock 93,354 628,878 825,247
Participant Loans (7.0%-9.5%) 858,952 858,952
_________ ___________ ___________
93,354 $ 13,050,639 $ 13,097,364
_________ ___________ ___________
Total:
The Northern Trust Company
Short-Term Investment Fund $ 864,862 $ 864,862
Cummins Engine Company, Inc.
Fixed Income Fund 211,863,969 211,863,969
Vanguard Wellington Fund 102,417,741 97,724,191
Vanguard U.S. Growth Fund 30,589,086 31,303,048
Vanguard Index Trust Fund 44,081,084 43,278,554
Vanguard Explorer Fund 4,201,020 4,021,125
Vanguard International Fund 10,675,979 10,265,795
Cummins Engine Company, Inc.
Common Stock 4,781,122 95,980,701 125,950,882
Participant Loans (7.0%-9.5%) 11,368,457 11,368,457
_________ ___________ ___________
4,781,122 $512,042,899 $536,640,883
_________ ___________ ___________
<PAGE> Schedule II
___________
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1994
Number of Par Value or
Description of Issue Transactions Principal Amount Purchased Cost
____________________ ____________ ________________ ______________
Fixed Income Fund 263 N/A $51,197,817
Fixed Income Fund 241 N/A 26,192,630
Wellington Fund 170 N/A 20,841,393
Wellington Fund 357 N/A 24,675,090
Description of Issue Sales Proceeds Current Value Gain or (Loss)
____________________ ______________ _____________ ______________
Fixed Income Fund - $51,197,817 $ -
Fixed Income Fund $26,192,630 - -
Wellington Fund - 20,841,393 -
Wellington Fund 24,129,372 - (545,718)
<PAGE>
Schedule III
____________
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
SCHEDULE OF MATCHING CONTRIBUTION FORMULAS
AS OF DECEMBER 31, 1994
LOC CASH ESOP STOCK
EMPLOYING COMPANY CODE LOCATION NAME CONTRIBUTIONS CONTRIBUTION
_________________ ____ _____________ _____________ ____________
Cummins Engine Company 110 Columbus Exempt No Yes(1)(2)
" 120 Columbus DWU Yes(3)(4) No
" 121 Walesboro DWU Yes(5)(6) No
" 130 Columbus OCU Yes(3)(4) No
" 131 OCU New Hires Yes(5) No
OCU Levels 4 & 5 Yes(17) No
" 132 Walesboro OCU Yes(5)(6) No
" 135 Cols. Security No Yes(1)(2)
" 136 Cols Sec.New Hires Yes(4)(5) No
Cummins Electronics 150 CELCO Union Yes(13)(6) No
" 160 CELCO Exempt No Yes(1)(7)
Cum.Military Systems 170 Cummins Military No No
CADEC 190 CADEC Yes(13) No
Cummins Engine Company 200 Charleston No Yes(1)(2)
Combustion Technologies 210 CTI Georgia No Yes(1)(2)
" 220 CTI Charleston No Yes(1)(2)
Cummins Engine Company 240 CHS Headline No Yes(1)(2)
" 250 CHS Recon No Yes(1)(2)
" 260 CHS Engr. Svcs. No Yes(1)(2)
Cummins Engine Company 280 Precision Gear No Yes(1)(2)
" 290 Fuel Systems No Yes(1)(2)
" 291 Cummins Marine No Yes(1)(2)
" 292 Quality Custom Comp No Yes(1)(2)
" 300 Jamestown Yes(16) Yes(1)(2)
" 301 JEP New Hires Yes(5)(6)(16) No
Cummins Natural Gas 390 Cummins Natural Yes(15)(16 No
Engines Gas
Cummins Americas, Inc. 400 Miami PDC No Yes(1)(2)
Atlas Crankshaft 500 Atlas Salaried No Yes(1)(2)
" 510 Atlas Union Yes(4) No
Onan Corporation 550 Onan-Multiple Loc. Yes(11) Yes(10)
" 551 Onan Huntsville Yes(11) Yes(10)
" 552 Onan OPE St. Peter Yes(11) Yes(10)
Fleetguard, Inc. 600 Fleetguard TN No Yes(1)(2)
Salaried
" 610 Fleetguard Lake No Yes(1)(2)
Mills Salaried
" 620 Fleetguard Lake No Yes(1)(2)
Mills Hourly
" 630 Fleetguard TN Hr Yes(12) No
Lubricant Consultants 640 Lubricon Yes(14) No
Kuss 650 Kuss Salaried No Yes(1)(2)
Kuss 651 Kuss Union No Yes(1)(2)
Fleetguard, Inc. 655 Separation Tech. No Yes(1)(2)
Cummins Engine Company 700 DRC Salaried No Yes(1)(2)
" * 720 DRC TN Union Yes(13) No
" * 730 DRC LA Union Yes(15) No
" * 740 DRC LA Union Yes(15) No
Cummins Diesel Intl. 810 CDIL No Yes(1)(2)
Consolidated Diesel Co. 900 Consol. Diesel Co. Yes(13)(9) No
Holset Engr. Company 950 Holset MI No Yes(1)(2)
" 951 Holset CHS No Yes(1)(2)
*Participants at locations 720, 730 and 740 are not eligible
to make Basic Savings Contributions.
Matching Contribution Legend
____________________________
( 1) ESOP Stock Contribution based on 50% of 1st 2% of pay
contributed as a Pre-Tax Contribution.
( 2) ESOP Stock Contribution based on 50% of 1st $900 of pay
contributed as a Basic Savings Contribution.
( 3) Cash Contribution of 50% (up to a maximum of $325) of 1st 2%
of pay contributed as a Pre-tax Contribution.
( 4) Cash Contribution of 50% of the 1st $900 of pay contributed
as a Basic Savings Contribution.
( 5) Cash Contribution of $325 per year to Pre-Tax Contribution
account, regardless of % of pay contributed.
( 6) Cash Contribution of 100% on 1st $450 of pay contributed as a
Basic Savings Contribution.
( 7) ESOP Stock Contribution based on 100% of 1st $900 of pay
contributed as a Basic Savings Contribution.
( 8) ESOP Stock Contribution based on 100% of the 1st 2.5% of pay
contributed as a Pre-Tax Contribution.
( 9) Cash Contribution based on 50% (up to a maximum of $900) on
1st $1,800 of pay contributed as a Basic Savings Contribution.
(10) ESOP Stock Contribution based on 100% of 1st $250, 75% of next
$250, 50% of next $1,000, and 25% of next $1,000 (maximum
stock match = $1,187.50). NOTE: Applies to Pre-Tax
Contributions.
(11) Cash Contribution of 25% of the 1st $1,000 of pay contributed
as a Basic Savings Contribution.
(12) Cash Contribution of 50% of the 1st 2% of pay contributed as a
Pre-Tax Contribution with a minimum of $200 if at least 2% is
contributed.
(13) Cash Contribution of 50% of 1st 2% of pay contributed as a
Pre-Tax Contribution.
(14) Cash Contribution of 100% of 1st 2.5% of pay contributed as
a Pre-Tax Contribution.
(15) Cash Contribution of 50% of 1st 4% of pay contributed as a
Pre-Tax Contribution.
(16) Discretionary Cash Contribution.
(17) Cash Contribution of $400 per year to Pre-Tax Contribution account,
regardless of % of pay contributed.
<PAGE>
SIGNATURES
__________
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employee benefit plan) have duly
caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
CUMMINS ENGINE COMPANY, INC.
RETIREMENT AND SAVINGS PLAN
____________________________
(Name of Plan)
By /s/ Carol K. Smalley
____________________
Carol K. Smalley
Secretary - Pension
Policy Committee
EXHIBIT 23
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
_________________________________________
As independent public accountants, we hereby consent to the
incorporation of our report dated June 9, 1995, included in this Form
11-K, into the Company's previously filed Registration Statement File
Nos. 2-32091, 2-53247, 2-58696, 33-2161, 33-8842, 33-31095,
33-37690, 33-46096, 33-46097, 33-46098, 33-50665 and 33-56115.
ARTHUR ANDERSEN LLP
Chicago, Illinois
June 28, 1995.
