SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year Ended December 31, 1995
_________________
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
FINANCIAL STATEMENTS
AS OF DECEMBER 31, 1995 AND 1994
TOGETHER WITH AUDITORS' REPORT
(Full title of the plan)
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
INDEX TO FINANCIAL STATEMENTS
Page
____
Report of Independent Public Accountants 3
Combining Statements of Net Assets by Plan 4-5
Combining Statements of Changes in Net Assets by Plan 6-7
Combining Statements of Net Assets by Fund 8-9
Combining Statements of Changes in Net Assets by Fund 10-11
Notes to Financial Statements 12-17
Signature 27
Schedule
________
Assets Held for Investment Purposes I
Reportable Transactions II
Matching Contribution Formulas III
Employing Locations by Plan IV
Loans or Fixed Income Obligations V
Exhibit
_______
Consent of Independent Public Accountants 23
<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, 1995 and
1994, and the related statements of changes in net assets by plan
and by fund, for the years ended December 31, 1995 and 1994. 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, 1995 and 1994, and the changes in the net assets for
the years ended December 31, 1995 and 1994, 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, matching contribution formulas, employee locations by
plan, and loans or fixed income obligations 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 Fund Information in the statement of net
assets and the statement of changes in net assets is presented for
purposes of additional analysis rather than to present the net
assets and changes in net assets available for plan benefits of each
fund. The supplemental schedules and Fund Information 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 11, 1996.
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF NET ASSETS BY PLAN
DECEMBER 31, 1995
(stated in OOO's)
<TABLE>
<CAPTION>
Salaried Bargaining Onan Lubricon CDC TOTAL
________ __________ _______ ________ _______ ________
<S> <C> <C> <C> <C> <C> <C>
Assets
______
Cash and investments:
The Northern Trust Company
Short-Term Investment Fund $ 1,156 $ - $ - $ - $ - $ 1,156
Cummins Engine Company, Inc.
Fixed Income Fund 89,546 110,828 19,251 82 5,104 224,811
Vanguard Wellington Fund 67,646 40,998 21,159 103 3,716 133,622
Vanguard U.S. Growth Fund 31,366 10,322 9,393 74 2,218 53,373
Vanguard Index Trust Fund 39,208 16,324 11,728 82 2,593 69,935
Vanguard Explorer Fund 5,911 1,727 1,238 19 271 9,166
Vanguard International Fund 5,396 1,221 1,098 46 178 7,939
Cummins Engine Company, Inc.
Common Stock 94,522 7,356 2,480 14 1,193 105,565
Participant Loans 5,439 3,587 1,632 23 897 11,578
________ ________ _______ ____ _______ ________
Total cash and investments 340,190 192,363 67,979 443 16,170 617,145
________ ________ _______ ____ _______ ________
Receivables:
Employer contributions 3,528 1,454 280 20 575 5,857
Employee contributions 1,758 1,485 631 4 248 4,126
Employee loan repayments 319 216 136 2 70 743
Accrued interest 4 - - - - 4
________ ________ _______ ____ _______ ________
Total receivables 5,609 3,155 1,047 26 893 10,730
________ ________ _______ ____ _______ ________
Total assets 345,799 195,518 69,026 469 17,063 627,875
________ ________ _______ ____ _______ ________
Liabilities
___________
Interest payable 2,953 - - - - 2,953
Note payable - ESOP 68,050 - - - - 68,050
________ ________ _______ ____ _______ ________
Total liabilities 71,003 - - - - 71,003
________ ________ _______ ____ _______ ________
Net Assets $274,796 $195,518 $69,026 $469 $17,063 $556,872
________ ________ _______ ____ _______ ________
________ ________ _______ ____ _______ ________
The accompanying notes and schedules are an integral part of these statements.
</TABLE>
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF NET ASSETS BY PLAN
DECEMBER 31, 1994
(stated in OOO's)
<TABLE>
<CAPTION>
Salaried Bargaining Onan Lubricon CDC TOTAL
________ __________ _______ ________ _______ ________
<S> <C> <C> <C> <C> <C> <C>
Assets
______
Cash and investments:
The Northern Trust Company
Short-Term Investment Fund $ 865 $ - $ - $ - $ - $ 865
Cummins Engine Company, Inc.
Fixed Income Fund 83,459 105,128 17,531 88 5,658 211,864
Vanguard Wellington Fund 49,907 29,286 15,811 68 2,653 97,725
Vanguard U.S. Growth Fund 18,624 5,620 5,915 30 1,114 31,303
Vanguard Index Trust Fund 24,003 9,949 7,764 45 1,518 43,279
Vanguard Explorer Fund 2,692 712 458 10 149 4,021
Vanguard International Fund 6,525 1,922 1,433 65 321 10,266
Cummins Engine Company, Inc.
Common Stock 114,495 7,867 2,749 13 825 125,949
Participant Loans 5,130 3,773 1,583 24 859 11,369
________ ________ _______ ____ _______ ________
Total cash and investments 305,700 164,257 53,244 343 13,097 536,641
________ ________ _______ ____ _______ ________
Receivables:
Employer contributions 3,644 1,487 294 20 517 5,962
Employee contributions 1,691 1,264 609 5 213 3,782
Employee loan repayments 245 213 115 1 65 639
Accrued interest 3 - - - - 3
________ ________ _______ ____ _______ ________
Total receivables 5,583 2,964 1,018 26 795 10,386
________ ________ _______ ____ _______ ________
Total assets 311,283 167,221 54,262 369 13,892 547,027
________ ________ _______ ____ _______ ________
Liabilities
___________
Interest payable 2,935 - - - - 2,935
Note payable - ESOP 69,450 - - - - 69,450
________ ________ _______ ____ _______ ________
Total liabilities 72,385 - - - - 72,385
________ ________ _______ ____ _______ ________
Net Assets $238,898 $167,221 $54,262 $369 $13,892 $474,642
________ ________ _______ ____ _______ ________
________ ________ _______ ____ _______ ________
The accompanying notes and schedules are an integral part of these statements.
</TABLE
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF CHANGES IN NET ASSETS BY PLAN
DECEMBER 31, 1995
(stated in OOO's)
</TABLE>
<TABLE>
<CAPTION>
Salaried Bargaining Onan Lubricon CDC TOTAL
________ __________ _______ ________ _______ ________
<S> <C> <C> <C> <C> <C> <C>
Net Assets - beginning of year $238,898 $167,221 $54,262 $369 $13,892 $474,642
________ ________ _______ ____ _______ ________
Investment income:
Fund investment income 39,792 22,889 11,797 79 2,290 76,847
Interest income 28 - - - - 28
Dividend income 2,287 - - - - 2,287
Net realized & unrealized depreciation
in the value of investments (18,865) - - - - (18,865)
_________ ________ _______ ____ _______ _________
Total investment income 23,242 22,889 11,797 79 2,290 60,297
Less: investment advisory expense 70 25 4 - 2 101
interest expense 5,907 - - - - 5,907
________ ________ _______ ____ _______ ________
Net investment income 17,265 22,864 11,793 79 2,288 54,289
________ ________ _______ ____ _______ ________
Contributions:
Employer 5,390 1,462 286 20 592 7,750
Employee 21,602 13,946 5,903 59 2,213 43,723
Rollover 1,029 88 106 - 23 1,246
________ ________ _______ ____ _______ ________
Total contributions 28,021 15,496 6,295 79 2,828 52,719
________ ________ _______ ____ _______ ________
Participant withdrawals 9,896 10,006 3,265 57 1,554 24,778
Inter-plan transfers 508 (57) (59) (1) (391) -
________ _________ ________ _____ ________ ________
Net assets - end of year $274,796 $195,518 $69,026 $469 $17,063 $556,872
________ ________ _______ ____ _______ ________
________ ________ _______ ____ _______ ________
The accompanying notes and schedules are an integral part of these statements.
</TABLE>
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF CHANGES IN NET ASSETS BY PLAN
DECEMBER 31, 1994
(stated in OOO's)
<TABLE>
<CAPTION>
Salaried Bargaining Onan Lubricon CDC TOTAL
________ __________ _______ ________ _______ ________
<S> <C> <C> <C> <C> <C> <C>
Net Assets - beginning of year $238,911 $154,167 $47,882 $394 $12,491 $453,845
________ ________ _______ ____ _______ ________
Investment income:
Fund investment income (loss) 5,234 6,034 1,167 (26) 257 12,666
Interest income 13 - - - - 13
Dividend income 1,440 - - - - 1,440
Net realized & unrealized depreciation
in the value of investments (19,688) - - - - (19,688)
_________ ________ _______ _____ _______ _________
Total investment income (loss) (13,001) 6,034 1,167 (26) 257 (5,569)
Less: investment advisory expense 86 45 7 - 2 140
interest expense 5,969 - - - - 5,969
________ ________ _______ _____ _______ ________
Net investment income (loss) (19,056) 5,989 1,160 (26) 255 (11,678)
_________ ________ _______ _____ _______ _________
Contributions:
Employer 6,389 1,534 298 21 523 8,765
Employee 20,708 13,126 6,390 101 2,221 42,546
Rollover 822 206 274 1 17 1,320
________ ________ _______ ____ _______ ________
Total contributions 27,919 14,866 6,962 123 2,761 52,631
________ ________ _______ ____ _______ ________
Participant withdrawals 8,887 7,641 2,058 126 1,444 20,156
Inter-plan transfers 11 (160) 316 4 (171) -
________ _________ ________ _____ ________ ________
Net assets - end of year $238,898 $167,221 $54,262 $369 $13,892 $474,642
________ ________ _______ ____ _______ ________
________ ________ _______ ____ _______ ________
The accompanying notes and schedules are an integral part of these statements.
</TABLE>
<PAGE>
<TABLE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF NET ASSETS BY FUND
DECEMBER 31, 1995
(stated in OOO's)
<CAPTION>
Fixed U.S. Index Explorer Cummins Loan
Income Wellington Growth Fund Fund Intl. Stock ESOP Fund Total
________ __________ _______ _______ ________ ______ _______ _______ _______ ________
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets
______
Cash and investments:
The Northern Trust Company
Short-Term Investment Fund $ - $ - $ - $ - $ - $ - $ - $ 1,156 $ - $ 1,156
Cummins Engine Company, Inc.
Fixed Income Fund 224,811 - - - - - - - - 224,811
Vanguard Wellington Fund - 133,622 - - - - - - - 133,622
Vanguard U.S. Growth Fund - - 53,373 - - - - - 53,373
Vanguard Index Trust Fund - - - 69,935 - - - - - 69,935
Vanguard Explorer Fund - - - - 9,166 - - - - 9,166
Vanguard International Fund - - - - - 7,939 - - - 7,939
Cummins Engine Company, Inc.
Common Stock - - - - - - 21,368 84,197 - 105,565
Participant Loans - - - - - - - - 11,578 11,578
________ ________ _______ _______ _______ ______ _______ _______ _______ ________
Total Cash and investments 224,811 133,622 53,373 69,935 9,166 7,939 21,368 85,353 11,578 617,145
________ ________ _______ _______ _______ ______ _______ _______ _______ ________
Receivables:
Employer contributions 1,269 524 266 307 45 40 93 3,313 - 5,857
Employee contributions 1,473 1,033 554 677 126 109 154 - - 4,126
Employee loan repayments 269 182 100 127 15 14 36 - - 743
Accrued interest - - - - - - - 4 - 4
________ ________ _______ _______ ______ ______ _______ _______ _______ ________
Total receivables 3,011 1,739 920 1,111 186 163 283 3,317 - 10,730
________ ________ _______ _______ ______ ______ _______ _______ _______ ________
Total assets 227,822 135,361 54,293 71,046 9,352 8,102 21,651 88,670 11,578 627,875
________ ________ _______ _______ ______ ______ _______ _______ _______ ________
Liabilities
___________
Interest payable - - - - - - - 2,953 - 2,953
Note payable - ESOP - - - - - - - 68,050 - 68,050
________ ________ _______ _______ ______ ______ _______ _______ _______ ________
Total liabilities - - - - - - - 71,003 - 71,003
________ ________ _______ _______ ______ ______ _______ _______ _______ ________
Net Assets $227,822 $135,361 $54,293 $71,046 $9,352 $8,102 $21,651 $17,667 $11,578 $556,872
________ ________ _______ _______ ______ ______ _______ _______ _______ ________
________ ________ _______ _______ ______ ______ _______ _______ _______ ________
The accompanying notes and schedules are an integral part of these statements.
</TABLE
<PAGE>
</TABLE>
<TABLE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF NET ASSETS BY FUND
DECEMBER 31, 1994
(stated in OOO's)
<CAPTION>
Fixed U.S. Index Explorer Cummins Loan
Income Wellington Growth Fund Fund Intl. Stock ESOP Fund Total
________ __________ _______ _______ ________ _______ _______ _______ _______ ________
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets
______
Cash and investments:
The Northern Trust Company
Short-Term Investment Fund $ - $ - $ - $ - $ - $ - $ - $ 865 $ - $ 865
Cummins Engine Company, Inc.
Fixed Income Fund 211,864 - - - - - - - - 211,864
Vanguard Wellington Fund - 97,725 - - - - - - - 97,725
Vanguard U.S. Growth Fund - - 31,303 - - - - - 31,303
Vanguard Index Trust Fund - - - 43,279 - - - - - 43,279
Vanguard Explorer Fund - - - - 4,021 - - - - 4,021
Vanguard International Fund - - - - - 10,266 - - - 10,266
Cummins Engine Company, Inc.
Common Stock - - - - - - 21,946 104,003 - 125,949
Participant Loans - - - - - - - - 11,369 11,369
________ ________ _______ _______ _______ _______ _______ _______ _______ ________
Total Cash and investments 211,864 97,725 31,303 43,279 4,021 10,266 21,946 104,868 11,369 536,641
________ ________ _______ _______ _______ _______ _______ _______ _______ ________
Receivables:
Employer contributions 1,348 491 195 245 27 64 125 3,467 - 5,962
Employee contributions 1,488 918 419 526 78 163 190 - - 3,782
Employee loan repayments 251 172 68 85 8 18 37 - - 639
Accrued interest - - - - - - - 3 - 3
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
Total receivables 3,087 1,581 682 856 113 245 352 3,470 - 10,386
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
Total assets 214,951 99,306 31,985 44,135 4,134 10,511 22,298 108,338 11,369 547,027
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
Liabilities
___________
Interest payable - - - - - - - 2,935 - 2,935
Note payable - ESOP - - - - - - - 69,450 - 69,450
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
Total liabilities - - - - - - - 72,385 - 72,385
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
Net Assets $214,951 $ 99,306 $31,985 $44,135 $4,134 $10,511 $22,298 $35,953 $11,369 $474,642
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
The accompanying notes and schedules are an integral part of these statements.
</TABLE
<PAGE>
</TABLE>
<TABLE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF CHANGES IN NET ASSETS BY FUND
DECEMBER 31, 1995
(stated in OOO's)
<CAPTION>
Fixed U.S. Cummins Loan
Income Wellington Growth Index Explorer Intl. Stock ESOP Fund Total
________ __________ _______ _______ ________ _______ _______ _______ _______ ________
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Assets - beginning of year $214,951 $ 99,306 $31,985 $44,135 $4,134 $10,511 $22,298 $35,953 $11,369 $474,642
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
Investment income:
Fund investment income (loss) 15,416 31,854 13,383 17,250 1,429 770 (3,255) - - 76,847
Interest income - - - - - - - 28 - 28
Dividend income - - - - - - - 2,287 - 2,287
Net realized and unrealized
depreciation in the value
of investments - - - - - - - (18,865) - (18,865)
________ ________ _______ _______ ______ _______ _______ _______ _______ _________
Total investment income (loss) 15,416 31,854 13,383 17,250 1,429 770 (3,255) (16,550) - 60,297
Less: investment advisory expense 51 - - - - - - 50 - 101
interest expense - - - - - - - 5,907 - 5,907
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
Net investment income (loss) 15,365 31,854 13,383 17,250 1,429 770 (3,255) (22,507) - 54,289
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
Contributions:
Employer 1,309 526 268 309 45 40 96 5,157 - 7,750
Employee 16,125 10,654 5,579 6,694 1,175 1,489 2,007 - - 43,723
Rollover 254 262 235 291 68 62 74 - - 1,246
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
Total contributions 17,688 11,442 6,082 7,294 1,288 1,591 2,177 5,157 - 52,719
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
Participant loan repayments 2,994 1,835 945 1,137 151 204 461 - (7,727) -
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
Inter-fund transfers (6,077) (2,427) 4,462 4,288 2,792 (4,420) 1,382 - - -
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
Payments:
Participant withdrawals 13,912 4,811 1,651 1,922 298 361 887 936 - 24,778
Participant loan withdrawals 3,187 1,838 913 1,136 144 193 525 - (7,936) -
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
Total payments 17,099 6,649 2,564 3,058 442 554 1,412 936 (7,936) 24,778
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
Net assets - end of year $227,822 $135,361 $54,293 $71,046 $9,352 $ 8,102 $21,651 $17,667 $11,578 $556,872
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
The accompanying notes and schedules are an integral part of these statements.
</TABLE
<PAGE>
</TABLE>
<TABLE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
COMBINING STATEMENTS OF CHANGES IN NET ASSETS BY FUND
DECEMBER 31, 1994
(stated in OOO's)
<CAPTION>
Fixed U.S. Cummins Loan
Income Wellington Growth Index Explorer Intl. Stock ESOP Fund Total
________ __________ _______ _______ ________ _______ _______ _______ _______ ________
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Assets - beginning of year $189,498 $107,998 $30,370 $43,912 $ 0 $ 0 $15,503 $55,558 $11,006 $453,845
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
Investment income:
Fund investment income (loss) 13,985 (644) 1,114 440 2 (60) (2,171) - - 12,666
Interest income - - - - - - - 13 - 13
Dividend income - - - - - - - 1,440 - 1,440
Net realized and unrealized
depreciation in the value
of investments - - - - - - - (19,688) - (19,688)
________ ________ _______ _______ ______ _______ _______ _______ _______ _________
Total investment income (loss) 13,985 (644) 1,114 440 2 (60) (2,171) (18,235) - (5,569)
Less: investment advisory expense 89 - - - - - - 51 - 140
interest expense - - - - - - - 5,969 - 5,969
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
Net investment income (loss) 13,896 (644) 1,114 440 2 (60) (2,171) (24,255) - (11,678)
________ ________ _______ _______ ______ _______ _______ _______ _______ _________
Contributions:
Employer 1,552 548 213 272 29 66 134 5,951 - 8,765
Employee 15,224 11,563 4,976 6,388 647 1,616 2,132 - - 42,546
Rollover 303 283 171 199 70 111 183 - - 1,320
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
Total contributions 17,079 12,394 5,360 6,859 746 1,793 2,449 5,951 - 52,631
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
Participant loan repayments 2,587 1,673 719 891 70 181 400 - (6,521) -
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
Inter-fund transfers 6,125 (16,307) (3,841) (5,691) 3,432 8,913 7,369 - - -
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
Payments:
Participant withdrawals 11,348 4,002 1,084 1,386 52 159 824 1,301 - 20,156
Participant loan withdrawals 2,886 1,806 653 890 64 157 428 - (6,884) -
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
Total payments 14,234 5,808 1,737 2,276 116 316 1,252 1,301 (6,884) 20,156
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
Net assets - end of year $214,951 $ 99,306 $31,985 $44,135 $4,134 $10,511 $22,298 $35,953 $11,369 $474,642
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
________ ________ _______ _______ ______ _______ _______ _______ _______ ________
The accompanying notes and schedules are an integral part of these statements.
</TABLE
<PAGE>
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995 AND 1994
1. SUMMARY OF THE PLAN
___________________
The Cummins Engine Company, Inc. and Affiliates Retirement and Savings
Plans (the Plan or the 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)
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 except for
its investment contracts which are stated at contract value and changes in
market value are reflected in Fund investment income (loss). Quoted market
prices are used to value investments.
The Fixed Income Fund consists primarily of insurance contracts and
bank investment contracts with various insurance companies. The insurance
companies maintain investment accounts for each contract. The accounts are
credited with earnings on the underlying investments at interest rates
ranging from 4.95% to 9.27% and charged for withdrawals and administrative
expenses by the insurance companies. The contracts are included in the
financial statements at contract value, which approximates fair value as
reported to the Plan by the investment administrator. Contract values
represent contributions made under the contracts, plus earnings, less Plan
withdrawals and administrative expenses.
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 consists 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.
Effective January, 1996, the Vanguard Institutional Index Fund
replaced Vanguard Index Trust-500 Fund. The Vanguard Institutional Index
Fund attempts to provide investment results that correspond to the price
and yield performance of publicly traded stocks, in the aggregate, as
represented by the Standard & Poor's 500 Composite Stock Price Index.
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 Loans
_________________
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 1995 plan year, 675,994
shares were allocated and 1,599,593 remain unallocated in the ESOP Trust.
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.
Participant 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 70 1/2. 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.
Effective January 1, 1996, the after-tax match for OCU employees
hired after June 19, 1990 and OCU-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.
Effective January 1, 1996, the after-tax match for Atlas hourly
employees (Bargaining Plan) was replaced by a pre-tax match of $1 for every
$1 contributed up to 2% 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 $1.5 million, $1.6 million and $1.7 million are due in 1996,
1997, and 1998 respectively. The final principal payment, $63.3 million,
is due on July 15, 1998.
7. PARTIES-IN-INTEREST AND REPORTABLE TRANSACTIONS
_______________________________________________
Party-in-interest transactions during the plan year ended December 31,
1995 are included in Schedules I and II of these statements.
Reportable transactions during the plan year ended December 31, 1995
are included in Schedule II of these statements.
<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, 1995
(cost and market value amounts stated in 000's)
ISSUER/DESCRIPTION SHARES COST MARKET VALUE
_______________________________ _________ ________ ____________
Salaried:
The Northern Trust Company
Short-Term Investment Fund $ 1,156 $ 1,156
Cummins Engine Company, Inc.
Fixed Income Fund 89,546 89,546
Vanguard Wellington Fund 55,592 67,646
Vanguard U.S. Growth Fund 25,260 31,366
Vanguard Index Trust Fund 30,936 39,208
Vanguard Explorer Fund 5,565 5,911
Vanguard International Fund 5,469 5,396
Cummins Engine Company, Inc.
Common Stock*** 3,705,752 86,625 94,522
Participant Loans (9.5%-10.0%) 5,439 5,439
_________ ________ ________
3,705,752 $305,588 $340,190
_________ ________ ________
Bargaining:
The Northern Trust Company
Short-Term Investment Fund $ - $ -
Cummins Engine Company, Inc.
Fixed Income Fund 110,828 110,828
Vanguard Wellington Fund 33,692 40,998
Vanguard U.S. Growth Fund 8,313 10,322
Vanguard Index Trust Fund 12,880 16,324
Vanguard Explorer Fund 1,626 1,727
Vanguard International Fund 1,238 1,221
Cummins Engine Company, Inc.
Common Stock*** 1,018,843 6,741 7,356
Participant Loans (9.5%-10.0%) 3,587 3,587
_________ ________ ________
1,018,843 $178,905 $192,363
_________ ________ ________
Onan:
The Northern Trust Company
Short-Term Investment Fund $ - $ -
Cummins Engine Company, Inc.
Fixed Income Fund 19,251 19,251
Vanguard Wellington Fund 17,388 21,159
Vanguard U.S. Growth Fund 7,565 9,393
Vanguard Index Trust Fund 9,254 11,728
Vanguard Explorer Fund 1,166 1,238
Vanguard International Fund 1,112 1,098
Cummins Engine Company, Inc.
Common Stock*** 343,406 2,273 2,480
Participant Loans (9.5%-10.0%) 1,632 1,632
_________ ________ ________
343,406 $ 59,641 $ 67,979
_________ ________ ________
Lubricon:
The Northern Trust Company
Short-Term Investment Fund $ - $ -
Cummins Engine Company, Inc.
Fixed Income Fund 81 82
Vanguard Wellington Fund 85 103
Vanguard U.S. Growth Fund 60 74
Vanguard Index Trust Fund 65 82
Vanguard Explorer Fund 18 19
Vanguard International Fund 48 46
Cummins Engine Company, Inc.
Common Stock*** 1,962 12 14
Participant Loans (9.5%-10.0%) 23 23
_________ ________ ________
1,962 $ 392 $ 443
_________ ________ ________
CDC:
The Northern Trust Company
Short-Term Investment Fund $ - $ -
Cummins Engine Company, Inc.
Fixed Income Fund 5,105 5,104
Vanguard Wellington Fund 3,054 3,716
Vanguard U.S. Growth Fund 1,786 2,218
Vanguard Index Trust Fund 2,046 2,593
Vanguard Explorer Fund 255 271
Vanguard International Fund 180 178
Cummins Engine Company, Inc.
Common Stock*** 165,200 1,093 1,193
Participant Loans (9.5%-10.0%) 897 897
_________ ________ ________
165,200 $ 14,416 $ 16,170
_________ ________ ________
Total:
The Northern Trust Company
Short-Term Investment Fund $ 1,156 $ 1,156
Cummins Engine Company, Inc.
Fixed Income Fund 224,811 224,811
Vanguard Wellington Fund 109,811 133,622
Vanguard U.S. Growth Fund 42,984 53,373
Vanguard Index Trust Fund 55,181 69,935
Vanguard Explorer Fund 8,630 9,166
Vanguard International Fund 8,047 7,939
Cummins Engine Company, Inc.
Common Stock*** 5,235,163 96,744 105,565
Participant Loans (9.5%-10.0%) 11,578 11,578
_________ ________ ________
5,235,163 $558,942 $617,145
_________ ________ ________
***Identifies known party-in-interest to the plan
<PAGE>
</TABLE>
<TABLE>
Schedule II
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
(amounts stated in 000's)
<CAPTION>
Par Value
Number of or Principal Purchased Sales Current Gain or
Description of Issue Transactions Amount Cost Proceeds Value (Loss)
____________________ ____________ ____________ _________ ________ _______ _______
<S> <C> <C> <C> <C> <C> <C>
Fixed Income Fund 158 N/A $57,725 $ - $57,725 $ -
Fixed Income Fund 167 N/A 44,739 44,739 - -
Wellington Fund 151 N/A 27,315 - 27,315 -
Wellington Fund 159 N/A 15,111 16,731 - 1,620
U.S. Growth Fund 167 N/A 16,694 - 16,694 -
U.S. Growth Fund 135 N/A 4,924 5,822 - 898
Index Trust Fund 168 N/A 18,457 - 18,457 -
Index Trust Fund 138 N/A 6,665 7,442 - 777
Cummins Stock Fund*** 159 N/A 20,460 - 20,460 -
Cummins Stock Fund*** 148 N/A 15,083 17,270 - 2,187
***Identifies known party-in-interest to the plan
</TABLE
<PAGE>
Schedule III
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
SCHEDULE OF MATCHING CONTRIBUTION FORMULAS
AS OF DECEMBER 31, 1995
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(17) No
" 130 Columbus OCU Yes(3)(4) No
" 131 OCU New Hires Yes(5) No
" 132 Walesboro OCU Yes(5)(6) No
" 133 OCU Levels 4 & 5 Yes(16) No
" 135 Cols. Security No Yes(1)(2)
" 136 Cols Sec. New Hires Yes(4)(5) No
Cummins Electronics 150 CELCO Union Yes(12)(6) No
" 160 CELCO Exempt No Yes(1)(7)
CADEC 190 CADEC Yes(12) No
Cummins Engine Company 200 Chs Mgmt. Services 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 Cylinder Head No Yes(1)(2)
" 250 Chs Recon No Yes(1)(2)
" 260 Chs Engr Test Svcs. No Yes(1)(2)
Cummins Engine Company 280 Precision Gear Train 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 No Yes(1)(2)
" 301 JEP New Hires Yes(5)(6) No
Cummins Natural Gas 390 Cummins Natural Gas Yes(14)(15) No
Engines
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(10) Yes(9)
" 551 Onan Huntsville Yes(10) Yes(9)
" 552 Onan OPE St. Peter Yes(10) Yes(9)
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(11) No
Lubricant Consultants 640 Lubricon Yes(13) 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(12) No
" * 730 DRC LA Union Yes(14) No
" * 740 DRC LA Union Yes(14) No
Cummins Diesel Intl. 810 CDIL No Yes(1)(2)
Cummins Engine Company 815 CKEC No Yes(1)(2)
Consolidated Diesel Co. 900 Consol. Diesel Co. Yes(12)(8) 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) Cash Contribution based on 50% (up to a maximum of $900) on
1st $1,800 of pay contributed as a Basic Savings Contribution.
( 9) 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.
(10) Cash Contribution of 25% of the 1st $1,000 of pay contributed
as a Basic Savings Contribution.
(11) 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.
(12) Cash Contribution of 50% of 1st 2% of pay contributed as a
Pre-Tax Contribution.
(13) Cash Contribution of 100% of 1st 2.5% of pay contributed as
a Pre-Tax Contribution.
(14) Cash Contribution of 50% of 1st 4% of pay contributed as a
Pre-Tax Contribution.
(15) Discretionary Cash Contribution.
(16) Cash Contribution of $400 per year to Pre-Tax Contribution account,
regardless of % of pay contributed.
(17) Cash Contribution of $1 for $1 up to 2% of gross pay; $.25 on dollar
up to next 4% of gross pay for pretax.
<PAGE>
Schedule IV
Cummins Engine Company, Inc. and Affiliates
Retirement and Savings Plans
Employing Locations by Plan
Cummins Engine Company, Inc. and Affiliates Retirement and Savings Plan for
Salaried and Non-Bargaining Hourly Employees
EIN # 35-0257090
Plan 020
- ---------------------------------------------------------------------------
110 Columbus Exempt 300 Jamestown
135 Columbus Security 301 Jamestown New Hires
136 Columbus Security New Hires 390 Cummins Natural Gas Engines
160 CELCO Exempt 400 Miami PDC
190 CADEC 500 Atlas Salaried
200 Charleston Management Svcs. 600 Fleetguard TN Salaried
210 CTI Georgia 610 Fleetguard Lake Mills Salaried
220 CTI Charleston 620 Fleetguard Lake Mills Hourly
240 Chs Headline 650 Kuss Salaried
250 Chs Recon 655 Separation Tech
260 Chs Engr. Test Services 700 DRC Salaried
280 Precision Gear 810 CDIL
290 FSB 815 Cummins Komatsu
291 Cummins Marine 950 Holset MI
292 Quality Custom Comp 951 Holset Chs
Cummins Engine Company, Inc. Retirement and Savings Plan for
Onan Corporation Employees
EIN # 41-0965373
Plan 025
- --------------------------------------------------------------------------
550 Onan Multiple Locations 552 Onan OPE St. Peter
551 Onan Huntsville
Cummins Engine Company, Inc. Retirement and Savings Plan for
Consolidated Diesel Company Employees
EIN # 56-1896727
Plan 020
- -------------------------------------------------------------------------
900 Consolidated Diesel Company
Cummins Engine Company, Inc. Retirement and Savings Plan for
Lubricant Consultants, Inc. Employees
EIN # 22-2083361
Plan 020
- -------------------------------------------------------------------------
640 Lubricon
Cummins Engine Company, Inc. and Affiliates Retirement and Savings Plan for
Bargaining Unit Employees
EIN # 35-0257090
Plan 030
- ---------------------------------------------------------------------------
120 Columbus DWU 510 Atlas Union
121 Walesboro DWU 630 Fleetguard TN Hour
130 Columbus OCU 651 Kuss Union
131 OCU New Hires 720 DRC TN Union
132 Walesboro OCU 730 DRC LA Union
133 OCU Levels 4 & 5 740 DRC LA Union
150 CELCO Union
Schedule V
CUMMINS ENGINE COMPANY, INC. AND AFFILIATES
RETIREMENT AND SAVINGS PLANS
EIN 35-0257090
ITEM 27B: SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
AS OF DECEMBER 31, 1995
(amounts stated in 000's)
PRINCIPAL
ORIGINAL RECEIVED UNPAID
AMOUNT OF DURING PRINCIPAL AMOUNT
PLAN LOAN THE YEAR AT 12/31/95 OVERDUE
__________ _________ _________ ___________ _______
Salaried $77 $2 $68 $10
Bargaining 34 4 12 3
Onan 65 9 43 9
CDC 7 1 5 1
Participants may borrow amounts contributed up to 50% of the participant's
account balance, not to exceed $50,000. Loans must be repaid at least
quarterly over a period not to exceed five years. Interest rates vary
depending upon the time the loans are requested. A collection policy has been
implemented to tax all delinquent loans greater than 90 days past due as
distributions to the participant
<PAGE>
SIGNATURE
__________
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
</TABLE>
EXHIBIT 23
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
_________________________________________
As independent public accountants, we hereby consent to the
incorporation of our report dated June 11, 1996, 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, 33-56115 and
33-32165.
ARTHUR ANDERSEN LLP
Chicago, Illinois
June 11, 1996.
