SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
[ X ] ANNUAL REPORT PURSUANT TO SECTION 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM .........TO ........
COMMISSION FILE NUMBER 1-7867
-------------
WEATHERFORD ENTERRA, INC. 401(K)
SAVINGS PLAN
-------------
WEATHERFORD ENTERRA, INC.
1360 POST OAK BOULEVARD
SUITE 1000
HOUSTON, TEXAS 77056
WEATHERFORD ENTERRA, INC. 401(K) SAVINGS PLAN
FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
<TABLE>
<CAPTION>
PAGE
<S> <C>
Report of Independent Public Accountants .......................................................................... F-1
Statements of Net Assets Available for Plan Benefits, with Fund Information -
December 31, 1995 and 1994 ..................................................................................... F-2 to F-3
Statements of Changes in Net Assets Available for Plan Benefits - For Each of the
Three Years in the Period Ended December 31, 1995 ............................................................... F-4 to F-6
Notes to Financial Statements ..................................................................................... F-7
SUPPLEMENTAL SCHEDULES:
Schedule I - Item 27(a) - Schedule of Assets Held for Investment
Purposes -
December 31, 1995 ...................................................................................... F-13
Schedule II - Item 27(d) - Schedule of Reportable Transactions -
For the Year Ended December 31, 1995 ................................................................... F-14
</TABLE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Administrative Committee of the Weatherford Enterra, Inc. 401(k) Savings
Plan:
We have audited the accompanying statements of net assets available
for plan benefits of the Weatherford Enterra, Inc. 401(k) Savings Plan as of
December 31, 1995 and 1994, and the related statements of changes in net assets
available for plan benefits for each of the three years in the period ended
December 31, 1995. These financial statements and supplemental schedules
referred to below are the responsibility of the plan administrative committee.
Our responsibility is to express an opinion on these financial statements and
supplemental 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 the plan administrative committee, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the net assets available for plan benefits of
the Weatherford Enterra, Inc. 401(k) Savings Plan as of December 31, 1995 and
1994, and the changes in net assets available for plan benefits for each of the
three years in the period ended December 31, 1995, 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 listed
in the accompanying index are presented for purposes of additional analysis and
are not a required part of the basic financial statements but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The supplemental schedules 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
Houston, Texas
June 24, 1996
F-1
WEATHERFORD ENTERRA, INC. 401(k) SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
Merrill Lynch
Merrill Lynch Corporate Davis Merrill Lynch
Global Merrill Lynch Bond Fund Merrill Lynch New York Retirement
Allocation Equity Index Investment Capital Fund Venture Fund Preservation
Fund Class A Trust 1 Grade Class A Class A Inc. Trust
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at Market Value:
Common Stock of Weatherford
Enterra, Inc. .........................
(cost of $2,885,035) .................. $ -- -- -- -- -- --
Merrill Lynch Global Alloca
tion Fund
(cost of $1,307,425) .................. 1,396,624 -- -- -- -- --
Merrill Lynch Equity Index Trust 1
(cost of $2,209,078) .................. -- 2,897,864 -- -- -- --
Merrill Lynch Corporate Bond Fund
Investment Grade Class A (cost of
$ 558,188) -- -- 603,532 -- -- --
Merrill Lynch Capital Fund Class A
(cost of $5,731,118) .................. -- -- -- 6,330,429 -- --
Davis New York Venture Fund, Inc. ....... -- -- -- -- 1,921,455 --
(cost of $1,651,052)
Merrill Lynch Retirement Preservation
Trust (cost equals market) ............ -- -- -- -- -- 9,773,602
Merrill Lynch USA Government Reserve
Fund (cost equals market) ............. -- -- -- -- -- --
Participant loans ....................... -- -- -- -- -- --
-----------------------------------------------------------------------------------------
Total investments ..................... 1,396,624 2,897,864 603,532 6,330,429 1,921,455 9,773,602
Contributions receivable --
Company ............................... 2,885 5,200 1,300 8,772 3,492 20,735
Participant ........................... 13,153 23,925 7,081 39,295 15,798 89,269
Accrued income receivable ............... -- -- -- -- -- --
Cash .................................... -- -- -- -- -- --
-----------------------------------------------------------------------------------------
Total Assets .......................... 1,412,662 2,926,989 611,913 6,378,496 1,940,745 9,883,606
-----------------------------------------------------------------------------------------
LIABILITIES
Administrative fees payable and other ... -- -- -- -- -- --
-----------------------------------------------------------------------------------------
Net assets available for plan benefits. $1,412,662 2,926,989 611,913 6,378,496 1,940,745 9,883,606
=========================================================================================
</TABLE>
<TABLE>
<CAPTION>
Merrill Lynch Weatherford
USA Enterra, Inc.
Government CommonStock Participant Cash
Reserve Fund Fund Loans Fund Combined
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at Market Value:
Common Stock of Weatherford
Enterra, Inc.
(cost of $2,885,035) ............................ -- $4,635,679 -- -- 4,635,679
Merrill Lynch Global Alloca
tion Fund
(cost of $1,307,425) ............................ -- -- -- -- 1,396,624
Merrill Lynch Equity Index Trust 1
(cost of $2,209,078) ............................ -- -- -- -- 2,897,864
Merrill Lynch Corporate Bond Fund
Investment Grade Class A (cost of
$ 558,188) ...................................... -- -- -- -- 603,532
Merrill Lynch Capital Fund Class A
(cost of $5,731,118) ............................ -- -- -- -- 6,330,429
Davis New York Venture Fund, Inc.
(cost of $1,651,052) ............................ -- -- -- -- 1,921,455
Merrill Lynch Retirement Preservation
Trust (cost equals market) ...................... -- -- -- -- 9,773,602
Merrill Lynch USA Government Reserve
Fund (cost equals market) ....................... 147,223 -- -- -- 147,223
Participant loans ................................. -- -- 1,510,142 -- 1,510,142
-------------------------------------------------------------------------
Total investments ............................... 147,223 4,635,679 1,510,142 -- 29,216,550
Contributions receivable --
Company ......................................... 268 719,723 -- -- 762,375
Participant ..................................... 1,216 39,392 -- -- 229,129
Accrued income receivable ......................... -- -- -- 129 129
Cash .............................................. -- -- -- 6,817 6,817
-------------------------------------------------------------------------
Total Assets .................................... 148,707 5,394,794 1,510,142 6,946 30,215,000
-------------------------------------------------------------------------
LIABILITIES
Administrative fees payable and other ............. -- -- -- -- --
-------------------------------------------------------------------------
Net assets available for plan benefits .......... 148,707 5,394,794 1,510,142 6,946 30,215,000
=========================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
F-2
WEATHERFORD ENTERRA, INC. 401(k) SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
Merrill Lynch
Merrill Lynch Corporate Davis
Global Merrill Lynch Bond Fund Merrill Lynch New York
Allocation Equity Index Investment Capital Fund Venture Fund
Fund Class A Trust 1 Grade Class A Class A Inc.
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at Market Value:
Common Stock of Weatherford
International Incorporated (cost of
$ 2,187,265) ..................................... $ -- -- -- -- --
Merrill Lynch Global Allocation Fund
(cost of $504,387) ................................ 466,908 -- -- -- --
Merrill Lynch Equity Index Trust 1 (cost of
$ 1,851,520) ...................................... -- 1,864,104 -- -- --
Merrill Lynch Corporate Bond Fund
Investment Grade Class A (cost of
$ 183,316) ........................................ -- -- 178,082 -- --
Merrill Lynch Capital Fund Class A
(cost of $3,174,176) ........................... -- -- -- 2,949,273 --
Davis New York Venture Fund , Inc.
(cost of $389,632) ........................... -- -- -- -- 371,284
Merrill Lynch Retirement Preservation
Trust (cost equals market) ....................... -- -- -- -- --
Merrill Lynch USA Government Reserve
Fund (cost equals market) ........................ -- -- -- -- --
Participant loans .................................. -- -- -- -- --
------------------------------------------------------------------------
Total investments ................................ 466,908 1,864,104 178,082 2,949,273 371,284
Contributions receivable --
Company .......................................... 15,066 41,577 5,250 61,330 7,954
Participant ...................................... 9,802 19,788 3,843 31,762 5,777
Transfer receivable from H & H Plan .............. 559,951 -- 247,686 1,662,633 722,450
Accrued income receivable .......................... -- -- -- -- --
Cash ............................................... -- -- -- -- --
------------------------------------------------------------------------
Total Assets ..................................... 1,051,727 1,925,469 434,861 4,704,998 1,107,465
------------------------------------------------------------------------
LIABILITIES
Administrative fees payable and other .............. -- -- -- -- --
------------------------------------------------------------------------
Net assets available for plan benefits ........... $1,051,727 1,925,469 434,861 4,704,998 1,107,465
========================================================================
</TABLE>
<TABLE>
<CAPTION>
Merrill Lynch Merrill Lynch Weatherford
Retirement USA Common
Preservation Government Stock Participant Cash
Trust Reserve Fund Fund Loans Fund Combined
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at Market Value:
Common Stock of Weatherford
International Incorporated (cost of
$ 2,187,265) ...................................... $ -- -- 2,692,351 -- -- 2,692,351
Merrill Lynch Global Allocation Fund
(cost of $504,387) ................................. -- -- -- -- -- 466,908
Merrill Lynch Equity Index Trust 1 (cost of
$1,851,520) ........................................ -- -- -- -- -- 1,864,104
Merrill Lynch Corporate Bond Fund
Investment Grade Class A (cost of
$ 183,316) ........................................ -- -- -- -- -- 178,082
Merrill Lynch Capital Fund Class A
(cost of $3,174,176) ............................ -- -- -- -- -- 2,949,273
Davis New York Venture Fund , Inc.
(cost of $389,632) ............................ -- -- -- -- -- 371,284
Merrill Lynch Retirement Preservation
Trust (cost equals market) ........................ 8,163,840 -- -- -- -- 8,163,840
Merrill Lynch USA Government Reserve
Fund (cost equals market) ......................... -- 54,962 -- -- -- 54,962
Participant loans ................................... -- -- -- 945,567 -- 945,567
--------------------------------------------------------------------------
Total investments ................................. 8,163,840 54,962 2,692,351 945,567 -- 17,686,371
Contributions receivable --
Company ........................................... 252,527 1,528 71,670 -- -- 456,902
Participant ....................................... 92,370 357 34,898 -- -- 198,597
Transfer receivable from H & H Plan ............... 279,613 -- 103,082 297,589 -- 3,873,004
Accrued income receivable ........................... -- -- -- -- 2,024 2,024
Cash ................................................ -- -- -- -- 390 390
--------------------------------------------------------------------------
Total Assets ...................................... 8,788,350 56,847 2,902,001 1,243,156 2,414 22,217,288
--------------------------------------------------------------------------
LIABILITIES
Administrative fees payable and other ............... -- -- -- -- -- --
--------------------------------------------------------------------------
Net assets available for plan benefits ............ $8,788,350 56,847 2,902,001 1,243,156 2,414 22,217,288
==========================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
F-3
WEATHERFORD ENTERRA, INC. 401(k) SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
For the Year Ended December 31, 1995
<TABLE>
<CAPTION>
Merrill Lynch
Merrill Lynch Corporate Davis Merrill Lynch
Global Merrill Lynch Bond Fund Merrill Lynch New York Retirement
Allocation Equity Index Investment Capital Fund Venture Fund Preservation
Fund Class A Trust 1 Grade Class A Class A Inc. Trust
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Company .............................. $ 34,873 62,659 12,622 112,952 34,805 227,276
Participants ......................... 157,163 282,817 66,652 492,239 155,329 1,179,693
Rollovers ............................ 38,280 20,468 30,376 59,852 20,058 84,123
Investment income ...................... 117,702 5,986 36,806 663,647 146,435 595,465
Withdrawals by participants ............ (35,143) (149,590) (31,499) (450,908) (66,422) (673,062)
Increase in unrealized
appreciation of investments .......... 111,890 676,986 49,473 773,715 272,262 --
Realized gain on sale of
investments .......................... 26,010 67,043 6,021 107,385 49,878 --
Transfers among funds .................. (90,195) 35,332 6,601 (85,320) 220,654 (311,652)
Other .................................. 355 (181) -- (64) 281 (6,587)
-----------------------------------------------------------------------------------------
Increase in net assets available
for plan benefits .................... 360,935 1,001,520 177,052 1,673,498 833,280 1,095,256
Net assets available for plan
benefits at beginning of year ........ 1,051,727 1,925,469 434,861 4,704,998 1,107,465 8,788,350
-----------------------------------------------------------------------------------------
Net assets available for plan
benefits at end of year .............. $ 1,412,662 2,926,989 611,913 6,378,496 1,940,745 9,883,606
=========================================================================================
</TABLE>
<TABLE>
<CAPTION>
Merrill Lynch
USA Weatherford
Government Common Stock Participant Cash
Reserve Fund Fund Loans Fund Combined
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Contributions:
Company ..................................... 2,408 812,160 -- -- 1,299,755
Participants ................................ 10,624 476,812 -- -- 2,821,329
Rollovers ................................... 4,778 82,732 -- -- 340,667
Investment income ............................. 3,461 11,293 -- 129 1,580,924
Withdrawals by participants ................... (37,919) (187,766) (76,753) -- (1,709,062)
Increase in unrealized
appreciation of investments ................. -- 1,245,486 -- -- 3,129,812
Realized gain on sale of
investments ................................. -- 280,673 -- -- 537,010
Transfers among funds ......................... 108,403 (226,675) 343,739 (887) --
Other ......................................... 105 (1,922) -- 5,290 (2,723)
----------------------------------------------------------------------------------
Increase in net assets available
for plan benefits ........................... 91,860 2,492,793 266,986 4,532 7,997,712
Net assets available for plan
benefits at beginning of year ............... 56,847 2,902,001 1,243,156 2,414 22,217,288
----------------------------------------------------------------------------------
Net assets available for plan
benefits at end of year ..................... 148,707 5,394,794 1,510,142 6,946 30,215,000
==================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
F-4
WEATHERFORD ENTERRA, INC. 401(k) SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
For the Year Ended December 31, 1994
<TABLE>
<CAPTION>
Merrill Lynch
Merrill Lynch Corporate Davis
TCB Global Merrill Lynch Bond Fund Merrill Lynch New York
Consolidated Allocation Equity Index Investment Capital Fund Venture Fund
Funds Fund Class A Trust 1 Grade Class A Class A Inc.
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Company .................................. $ -- 32,744 96,567 11,327 146,665 17,289
Participants ............................. -- 93,101 301,921 35,475 440,387 53,053
Rollovers ................................ 20,023 78,119 26,132 66,083 71,423 57,233
Investment Income .......................... 5,801 31,515 4,231 6,620 269,477 18,612
Withdrawals by Participants ................ -- (8,854) (174,082) (966) (242,073) (4,461)
Increase (decrease) in unrealized
appreciation of investments .............. -- (37,954) 12,480 (5,134) (224,803) (19,024)
Realized gain (loss) on sale of
investments .............................. 16,494 (4,883) (11,331) (504) (8,074) (1,391)
Transfer of assets from former Trustee ..... (11,752,510) -- 2,004,074 -- 2,820,550 --
Transfer from H&H Plan ..................... -- 559,951 -- 247,686 1,662,633 722,450
Transfers among funds ...................... -- 308,204 (334,208) 74,321 (233,413) 263,847
Other ...................................... (18,372) (216) (315) (47) 2,226 (143)
------------------------------------------------------------------------------------
Increase (decrease) in net assets
available for plan benefits .............. (11,728,564) 1,051,727 1,925,469 434,861 4,704,998 1,107,465
Net assets available for plan
benefits at beginning of year ............ 11,728,564 -- -- -- -- --
------------------------------------------------------------------------------------
Net assets available for plan
benefits at end of year .................. $ -- 1,051,727 1,925,469 434,861 4,704,998 1,107,465
====================================================================================
</TABLE>
<TABLE>
<CAPTION>
Merrill Lynch Merrill Lynch
Retirement USA Weatherford
Preservation Government Common Stock Participant Cash
Trust Reserve Fund Fund Loans Fund Combined
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Company ...................................... 498,259 2,132 151,991 -- -- 956,974
Participants ................................. 1,226,006 3,126 440,310 -- -- 2,593,379
Rollovers .................................... 173,150 8,710 51,598 -- -- 552,471
Investment Income .............................. 442,638 743 8,257 -- 2,024 789,918
Withdrawals by Participants .................... (624,991) (20) (110,147) (52,970) -- (1,218,564)
Increase (decrease) in unrealized
appreciation of investments .................. -- -- (183,980) -- -- (458,415)
Realized gain (loss) on sale of
investments .................................. -- -- 42,094 -- -- 32,405
Transfer of assets from former Trustee ......... 6,927,602 -- -- -- 284 --
Transfer from H&H Plan ......................... 279,613 -- 103,082 297,589 -- 3,873,004
Transfers among funds .......................... (125,821) 42,156 (228,894) 234,473 (665) --
Other .......................................... (8,106) -- (160) (22,551) 771 (46,913)
------------------------------------------------------------------------------------
Increase (decrease) in net assets
available for plan benefits .................. 8,788,350 56,847 274,151 456,541 2,414 7,074,259
Net assets available for plan
benefits at beginning of year ................ -- -- 2,627,850 786,615 -- 15,143,029
------------------------------------------------------------------------------------
Net assets available for plan
benefits at end of year ...................... 8,788,350 56,847 2,902,001 1,243,156 2,414 22,217,288
====================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
F-5
WEATHERFORD ENTERRA, INC. 401(K) SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND
INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1993
<TABLE>
<CAPTION>
Weatherford
Fixed Common
Income Equity Stock Balanced Participant
FUND FUND FUND FUND LOANS COMBINED
----------- ----------- ----------- ----------- --------- ------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Company ................... $ -- $ -- $ 895,887 $ -- $ -- $ 895,887
Participants .............. 1,224,151 288,027 347,740 483,050 -- 2,342,968
Rollovers ................. 2,592,314 363,503 399,483 2,598,707 83,408 6,037,415
Investment income .................. 155,131 3,493 2,611 10,637 43,786 215,658
Withdrawals by participants ........ (543,548) (174,407) (272,622) (539,332) (49,472) (1,579,381)
Increase in unrealized
appreciation of investments -- 18,562 468,705 -- -- 487,267
Realized gain on sale of
investments ............... 173,591 87,814 70,337 449,108 -- 780,850
Transfers among funds .............. (150,460) 196,158 (64,633) (142,534) 161,469 --
Other .............................. 4,098 634 683 (17,009) 12,589 995
----------- ----------- ----------- ----------- --------- ------------
Increase in net assets available
for plan benefits ......... 3,455,277 783,784 1,848,191 2,842,627 251,780 9,181,659
Net assets available for plan
benefits at beginning of
year ...................... 3,415,560 1,231,316 779,659 -- 534,835 5,961,370
----------- ----------- ----------- ----------- --------- ------------
Net assets available for plan
benefits at end of year ... $ 6,870,837 $ 2,015,100 $ 2,627,850 $ 2,842,627 $ 786,615 $ 15,143,029
=========== =========== =========== =========== ========= ============
</TABLE>
The accompanying notes are an integral part of these
financial statements.
F-6
WEATHERFORD ENTERRA, INC. 401(K) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -
BASIS OF ACCOUNTING -
The accompanying financial statements of the Weatherford Enterra, Inc.
401(k) Savings Plan (the "Plan") have been prepared on the accrual basis of
accounting.
On October 5, 1995, Weatherford International Incorporated completed a
merger with Enterra Corporation (the "Enterra Merger") and changed its name to
"Weatherford Enterra, Inc." (the "Company"). Contemporaneous with the Enterra
Merger, the Company effected a one-for-two reverse stock split of its Common
Stock. In this report, all per-share amounts and numbers of shares of Common
Stock have been restated to reflect the reverse stock split.
The preparation of financial statements in conformity with generally
accepted accounting principles requires the Plan's management to use estimates
and assumptions that affect the accompanying financial statements and
disclosures. Actual results could differ from these estimates.
ASSET VALUATION -
The Plan's investments in Company common stock (the "Common Stock"),
mutual funds, collective trusts and money market funds are reported in the
accompanying Statements of Net Assets Available for Plan Benefits at their
reported market value at the date of such statement. Differences between the
market value and the value of the assets at the beginning of the plan year or at
the time of purchase, if acquired during the year, are reported as an increase
(decrease) in unrealized appreciation in the accompanying Statements of Changes
in Net Assets Available for Plan Benefits. Withdrawals of assets from the Plan
are reported in the Statements of Changes in Net Assets Available for Plan
Benefits at market value.
EXPENSES -
All expenses related to the administration of the Plan may be paid by
the Company if it chooses to do so and, if not so paid, will be paid by The
Merrill Lynch Trust Companies, the trustee of the Plan (the "Trustee"), using
Plan assets. Effective January 1, 1994, The Merrill Lynch Trust Companies
replaced Texas Commerce Bank, N.A. ("TCB") as Trustee. The Trustee receives
compensation for its services in amounts agreed upon between the Company and the
Trustee. For the years ended December 31, 1995, 1994 and 1993, all
administrative expenses and compensation to the Trustee for services were paid
by the Company.
F-7
(2) PROVISIONS OF THE PLAN -
GENERAL -
The Plan is maintained for the exclusive benefit of the participants in
the Plan and is intended to aid the participants in providing for their
retirement. Listed below are the options available for selection by participants
with the number of members in each fund as of December 31, 1995, shown in
parentheses:
MERRILL LYNCH GLOBAL ALLOCATION FUND CLASS A - a mutual fund that
invests in equity, debt and money market securities. (256)
MERRILL LYNCH EQUITY INDEX TRUST 1 - a collective trust that invests
primarily in a portfolio of equity securities.(359)
MERRILL LYNCH CORPORATE BOND FUND INVESTMENT GRADE CLASS A - a mutual
fund that invests primarily in taxable fixed income securities. (161)
MERRILL LYNCH CAPITAL FUND CLASS A - a mutual fund that invests
primarily in equity securities, corporate bonds and/or money market
securities. (626)
DAVIS NEW YORK VENTURE FUND, INC. - a mutual fund that invests
primarily in common stocks and/or convertible securities. (277)
MERRILL LYNCH RETIREMENT PRESERVATION TRUST - a collective trust that
invests primarily in Government investment contracts, obligations of
United States governmental securities and money market securities.
(1,222)
MERRILL LYNCH USA GOVERNMENT RESERVE FUND - a money market mutual fund
that invests in United States treasury bills and notes. (22)
WEATHERFORD ENTERRA, INC. COMMON STOCK FUND - a fund that invests in
the Company's Common Stock. (953)
Participants have the option of investing their contributions in more
than one fund. Therefore, the sum of the participants in each individual fund is
greater than the number of participants of the Plan. There were 1,358 active
participants in the Plan as of December 31, 1995.
Effective December 31, 1994, the H & H Oil Tool Co., Inc. 401(k)
Savings Plan (the "H & H Plan") was merged into the Plan. As a result of this
plan merger, the net assets of the H & H Plan totaling $3,873,004, representing
131 former H & H Oil Tool Co., Inc. employees, were transferred into the Plan
during 1995. In addition, participants made rollover contributions totaling
$340,667 and $552,471 in 1995 and 1994, respectively, primarily relating to
participants whose former employers' businesses were acquired by the Company.
F-8
ADMINISTRATION -
The Plan is administered by the plan administrative committee (the
"Committee") of one or more persons appointed from time to time by the Board of
Directors of the Company.
ELIGIBILITY -
All employees are immediately eligible for participation in the Plan,
except for employees who are subject to collective bargaining agreements,
employees who are nonresident aliens and who receive no U.S. source income from
the Company and employees who are members of other retirement plans sponsored by
the Company or one of its subsidiaries outside the United States.
PARTICIPANT CONTRIBUTIONS -
An eligible employee may elect to contribute, by payroll deductions, 1%
to 16% of his base earnings to the Plan on a pre-tax basis subject to certain
limitations. An employee may also elect to contribute up to 16% of base
after-tax earnings subject to certain limitations. The combination of these
contributions, however, cannot exceed 16% of base earnings.
COMPANY CONTRIBUTIONS -
The Company contributes an amount equal to 33 1/3% of the first 6% of
each participant's pre-tax contributions after such participant has completed
one year of active service.
Pre-tax contributions up to 6% of a participant's compensation,
excluding any amount that a participant has contributed to the Company's
Employee Stock Purchase Plan, are eligible for Company matching contributions.
In addition, the Company, solely at the discretion of the Board of Directors,
may make discretionary contributions to the Plan. The Company made discretionary
contributions to the Plan totaling $711,587, $412,926, and $390,914 for 1995,
1994 and 1993, respectively.
Participants may allocate their contribution to the various available
investment funds at their discretion. The Company matching contribution may, at
the option of the Company, be made in cash or Company Common Stock. If the match
is made in cash, it is allocated to the various investment funds that the
participant has elected on a pro rata basis to the participant contributions.
The participants in the Plan are allowed to change their allocation and transfer
all or part of their accumulated balance in a particular fund to another fund at
any time. Any earnings on a fund's investments are reinvested in the same fund.
Earnings and losses are allocated to the participants' accounts based on the
number of units/shares held by the participant at the time the earnings and
losses were achieved.
F-9
VESTING AND FORFEITURE -
Each participant is 100% vested in his participant contribution and
related income. A participant's vested interest in the Company matching
contributions and related income is determined by his years of vesting service
in accordance with the following schedule:
YEARS OF
VESTING SERVICE VESTED INTEREST
Less than 2 years 0%
2 years 25%
3 years 50%
4 years 75%
5 years or more 100%
Nonvested amounts are forfeited upon termination of employment by
participants. The forfeited amounts are used to reduce future Company
contributions. There were $45,000 of forfeitures used to reduce employer
contributions during the Plan year ended December 31, 1995; however, no
forfeitures were used to reduce employer contributions during the Plan years
ended December 31, 1994 and 1993. Unutilized forfeitures were $32,502 and
$47,348 at December 31, 1995 and 1994, respectively.
The Plan provides that any nonvested interests in a participants'
accounts shall become fully vested upon the occurrence of a "change of control"
of the Company that is not approved, recommended or supported by the Company's
Board of Directors. A change of control is defined for purposes of the Plan as
either a third person becoming the beneficial owner of 20% or more of the voting
securities of the Company or a situation where, as a result of, or in connection
with, a cash tender or exchange offer, merger or other business combination,
sale of assets or contested election of directors, or any combination of such
transactions, where the persons who were directors of the Company before the
transaction cease to constitute a majority of the Board of Directors.
WITHDRAWALS AND TERMINATION OF EMPLOYMENT -
A participant may withdraw the value of his after-tax contributions to
the Plan at any time and for any reason during the year, with a minimum
withdrawal of $500. The participants' pre-tax contributions and the vested
account balances from the Company matching contributions will be available to
the participant upon termination of employment or severe and immediate financial
hardship.
In the event of normal retirement, total and permanent disability or
death while actively employed, the full value of the participant's account
balance, including nonvested interests in such accounts, will be distributed to
the participant or his beneficiaries. In the event of severe and immediate
financial hardship, the entire value or a portion of the value of the
participant's account balance may be distributed to the participant, with a
minimum withdrawal of $500.
Distributions from the Weatherford Enterra, Inc. Common Stock Fund may
be in the Company's Common Stock or cash, as elected by the participant. Plan
assets allocated to accounts of participants who
F-10
have withdrawn from participation in the earnings and operations of the Plan
were not material at December 31, 1995 and 1994.
LOANS TO PARTICIPANTS -
Upon application by any participant of the Plan who has been a
participant for at least two years, and subject to such rules as the Committee
may establish, the Committee may in its discretion direct the Trustee to make a
loan to such participant, not to exceed 50% of the participant's vested balance,
but never more than $50,000.
Any loan made pursuant to the Plan will bear interest, to be determined
quarterly by the Committee, which was prime plus 1% during 1995, 1994 and 1993.
The rate on loans made to participants averaged 9.8%, 7.7% and 7.0% for 1995,
1994 and 1993, respectively.
The Trustee funds a participant's loan by liquidating, on a pro rata
basis, the investments of the portions of the assets of the account or accounts
from which the participant's loan is to be made. The loan is secured by a pledge
of such participant's vested balance. As a condition to authorizing any loan,
the Committee requires the participant to authorize the Company to make payroll
deductions payable to the Trustee in repayment of such participant's loan plus
interest. Any such loan requires level amortization with payments not less
frequently than quarterly and must be repaid within five years unless the loan
is to be used to acquire the principal residence of the participant, in which
case the loan must be repaid within ten years.
THE TRUSTEE AND PURCHASES OF INVESTMENTS -
The Trustee maintains custody of the Plan's assets and uses participant
and Company contributions to make investments in accordance with the Plan
agreement. The Company's Common Stock may be purchased on the open market or
from the Company by the Trustee at a price equal to the closing price of the
Common Stock on the national securities exchange on which the Common Stock is
then listed. The market value per share of Common Stock was $29.00 on December
31, 1995 and $19.50 on December 31, 1994. On June 24, 1996, the market value per
share of Common Stock was $30.25.
AMENDMENT, SUSPENSION AND TERMINATION -
Although the Company has not expressed an intent to do so, it has the
right to suspend or terminate any or all provisions of the Plan at any time,
except that no such action shall be taken which will, in the Committee's
judgement, retroactively affect the rights of participants adversely.
(3) FEDERAL INCOME TAX STATUS -
The Plan obtained its latest determination letter on November 19, 1994,
in which the Internal Revenue Service stated that the Plan, as then designed,
was in compliance with the applicable requirements of the Internal Revenue Code.
The Plan has been amended since receiving the determination letter. However, the
Committee believes that the Plan is currently designed and being operated in
compliance with the applicable requirements of the Internal Revenue Code.
Therefore, they believe that the Plan was qualified and the related trust was
tax exempt as of the financial statement dates.
F-11
SCHEDULE I
WEATHERFORD ENTERRA, INC. 401(K) SAVINGS PLAN
ITEM 27(A) - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
NUMBER
OF UNITS/ HISTORICAL
IDENTITY OF ISSUE DESCRIPTION OF INVESTMENT SHARES COST MARKET
<S> <C> <C> <C> <C> <C>
The Merrill Lynch Trust Companies(1) Merrill Lynch Global Allocation Fund
Class A 100,621 1,307,425 1,396,624
The Merrill Lynch Trust Companies(1) Merrill Lynch Equity Index Trust 1 72,280 2,209,078 2,897,864
The Merrill Lynch Trust Companies(1) Merrill Lynch Corporate Bond Fund
Investment Grade Class A 50,974 558,188 603,532
The Merrill Lynch Trust Companies(1) Merrill Lynch Capital Fund Class A 207,215 5,731,118 6,330,429
Davis Venture Group(1) Davis New York Venture Fund, Inc. 132,332 1,651,052 1,921,455
----------- ------------- -------------
TOTAL MUTUAL FUNDS 563,422 11,456,861 13,149,904
----------- ------------- -------------
The Merrill Lynch Trust Companies(1) Merrill Lynch Retirement Preservation
Trust 9,773,602 9,773,602 9,773,602
The Merrill Lynch Trust Companies(1) Merrill Lynch USA Government
Reserve Fund 147,223 147,223 147,223
----------- ------------- -------------
TOTAL MONEY MARKET FUNDS 9,920,825 9,920,825 9,920,825
----------- ------------- -------------
Weatherford Enterra, Inc.(1) Common Stock of Weatherford
Enterra, Inc. 159,851 2,885,035 4,635,679
----------- ------------- ------------
The Plan(1) PARTICIPANT LOANS-interest rates ranging
from 6.75% to 11% per annum 1,510,142 1,510,142 1,510,142
----------- ------------- -------------
TOTAL ASSETS HELD FOR INVESTMENT
PURPOSES $ 25,772,863 $ 29,216,550
============= =============
</TABLE>
(1) Party-in-interest
F-12
SCHEDULE II
WEATHERFORD ENTERRA, INC. 401(K) SAVINGS PLAN
ITEM 27(D) - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
Single and series of transactions during the year in excess of 5
percent of current value of plan assets as of January 1, 1995 are as follows:
<TABLE>
<CAPTION>
PURCHASE TRANSACTIONS SALES TRANSACTIONS
TOTAL TOTAL HISTORICAL
IDENTITY OF PARTY NUMBER OF PURCHASE NUMBER OF SELLING COST OF NET
INVOLVED DESCRIPTION OF ASSET TRANSACTIONS PRICE (2) TRANSACTIONS PRICE (2) ASSETS SOLD GAIN(LOSS)
---------- ---------------------- ------------ ----------- ----------- --------- ----------- ----------
SERIES OF TRANSACTIONS:
----------------------
<S> <C> <C> <C> <C> <C> <C> <C>
The Merrill Lynch Common Stock of Weatherford
Trust Companies(1) Enterra, Inc. 188 $1,422,488 157 $ 921,107 $ 716,633 $ 204,474
The Merrill Lynch Merrill Lynch Global Allocation
Trust Companies(1) Fund Class A 144 1,115,029 132 323,213 311,991 11,222
The Merrill Lynch Merrill Lynch Equity Index
Trust Companies(1) Trust 1 195 717,481 205 427,751 359,924 67,827
The Merrill Lynch Merrill Lynch Capital Fund
Trust Companies(1) Class A 258 3,426,241 302 912,727 854,877 57,850
The Merrill Lynch Merrill Lynch Retirement
Trust Companies(1) Preservation Trust 493 3,804,503 358 2,194,741 2,194,741 --
The Merrill Lynch Davis New York Venture Fund
Trust Companies(1) Class A 173 1,516,493 117 288,462 255,073 33,389
SINGLE TRANSACTIONS:
--------------------
The Merrill Lynch Merrill Lynch Capital Fund
Trust Companies(1) Class A 1 1,662,633 -- -- -- --
</TABLE>
(1) Party-in-interest transactions.
(2) Current value at transaction date.
F-13
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Plan Administrative Committee has duly caused this annual report to
be signed on its behalf by the undersigned hereunto duly authorized.
WEATHERFORD ENTERRA, INC. 401(k) SAVINGS PLAN
June 28, 1996 By NORMAN W. NOLEN
Norman W. Nolen
Senior Vice President, Chief Financial
Officer and Treasurer of Weatherford Enterra, Inc.
Member of the Plan Administrative Committee
F-14
EXHIBIT 24
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation by
reference of our report dated June 24, 1996 on the financial statements and
supplemental schedules of the Weatherford Enterra, Inc. 401(k) Savings Plan as
of December 31, 1995 and 1994 and for each of three years in the period ended
December 31, 1995, included in this Form 11-K, into the previously filed
Weatherford Enterra, Inc. Form S-8 Registration Statements (File No. 33-54842
and 2-88509).
ARTHUR ANDERSEN LLP
Houston, Texas
June 28, 1996
F-15
