ENVIRODYNE INDUSTRIES, INC.
RETIREMENT SAVINGS PLAN
Chicago, Illinois
FINANCIAL STATEMENTS
December 31, 1997 and 1996
<PAGE>
TABLE OF CONTENTS
PAGE
INDEPENDENT AUDITOR'S REPORT 1
FINANCIAL STATEMENTS
Statements of Net Assets Available
for Benefits with Fund Information 2
Statements of Changes in Net Assets
Available for Benefits with Fund Information 4
Notes to Financial Statements 6
SUPPLEMENTAL INFORMATION 15
Schedule of Assets Held for Investment
Purposes - Item 27(a), Form 5500 16
Schedule of Reportable Transactions -
Item 27(d), Form 5500 17
NOTE: Supplemental schedules required by the Employee Retirement
Income Security Act of 1974 that have not been included
herein are not applicable to the Envirodyne Retirement
Savings Plan.
<PAGE>
Plan Administrator
Envirodyne Industries, Inc. Retirement Savings Plan
Chicago, Illinois
Independent Auditor's Report
We have audited the accompanying statements of net assets available
for benefits with fund information of Envirodyne Industries, Inc.
Retirement Savings Plan as of December 31, 1997 and 1996, and the
related statements of changes in net assets available for benefits
with fund information for the years then ended. These financial
statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements
based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the net assets available for
benefits of the Plan as of December 31, 1997 and 1996, and the
changes in net assets available for benefits for the years then
ended, 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
Schedule of Assets Held for Investment Purposes - item 27(a), Form
5500 and Schedule of Reportable Transactions - item 27(d), Form 5500
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
statements of net assets available for benefits and the statements of
changes in net assets available for benefits is presented for
purposes of additional analysis rather than to present the net assets
available for plan benefits and change 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.
CLIFTON GUNDERSON L.L.C.
Oak Brook, Illinois
June 12, 1998
<PAGE>
<PAGE>
ENVIRODYNE INDUSTRIES, INC. RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION - PART 1
December 31, 1997
<TABLE>
<CAPTION>
Fidelity 20th Warburg Warburg
Guaranteed Growth Fidelity Century Growth & Inter-
Long Term Advisor Puritan Ultra Income national
----------- ----------- ---------- ---------- -------- ----------
$ $ $ $ $ $
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments,
at fair value:
Cash transaction
account
Pooled investment
accounts
(Cost, $6,150,679) 3,149,066 1,019,375 787,073 465,770 503,028 386,604
Common stock
(Cost, $882,749)
Participant
notes
receivable
----------- ----------- ---------- ---------- ---------- ---------
Total
investments 3,149,066 1,019,375 787,073 465,770 503,028 386,604
----------- ----------- ---------- ---------- ---------- --------
Receivables:
Employer's
contribution 40,500 7,593 7,307 4,970 4,721 4,340
Participants'
contributions
----------- ----------- ---------- ---------- ---------- --------
Total
receivables 40,500 7,593 7,307 4,970 4,721 4,340
----------- ----------- ---------- ---------- ---------- --------
NET ASSETS
AVAILABLE FOR
BENEFITS 3,189,566 1,026,968 794,380 470,740 507,749 390,944
=========== =========== ========== ========== ========== ========
<FN>
These financial statements should be read only in connection
with the accompanying notes to financial statements.
/TABLE
<PAGE>
<PAGE>
ENVIRODYNE INDUSTRIES, INC. RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION - PART 2
December 31, 1997
<TABLE>
<CAPTION>
Envirodyne
Lifetime Lifetime Lifetime Lifetime Stock Loan
20 30 40 50 Fund Fund Other Total
---------- -------- ----------- -------- --------- -------- -------- ----------
$ $ $ $ $ $ $ $
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments,
at fair value:
Cash transaction
account
Pooled investment
accounts
(Cost, $6,150,679) 95,893 173,370 122,223 187,941 6,890,343
Common stock
(Cost, $882,749) 954,312 954,312
Participant
notes
receivable 324,253 324,253
---------- --------- ---------- --------- -------- -------- ------ ----------
Total
investments 95,893 173,370 122,223 187,941 954,312 324,253 8,168,908
---------- --------- ---------- --------- -------- -------- ------ ----------
Receivables:
Employer's
contribution 1,551 2,873 1,852 1,837 8,957 86,501
Participants'
contributions
---------- -------- ---------- --------- -------- -------- ------ ----------
Total
receivables 1,551 2,873 1,852 1,837 8,957 86,501
---------- -------- ---------- --------- -------- -------- ------ ----------
NET ASSETS
AVAILABLE FOR
BENEFITS 97,444 176,243 124,075 189,778 963,269 324,253 8,255,409
========== ======== ========== ========= ======== ======== ====== ==========
<FN>
These financial statements should be read only in connection
with the accompanying notes to financial statements.
</TABLE>
<PAGE>
<PAGE>
ENVIRODYNE INDUSTRIES, INC. RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION - PART 1
December 31, 1996
<TABLE>
<CAPTION>
Fidelity 20th Warburg Warburg
Guaranteed Growth Fidelity Century Growth & Inter-
Long Term Advisor Puritan Ultra Income national
----------- ----------- ---------- ---------- -------- ----------
$ $ $ $ $ $
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments,
at fair value:
Cash transaction
account
Pooled investment
accounts
(Cost, $5,097,388) 2,708,060 693,912 519,431 355,598 369,875 382,156
Common stock
(Cost, $346,000)
Participant
notes
receivable
----------- ----------- ---------- ---------- ---------- ---------
Total
investments 2,708,060 693,912 519,431 355,598 369,875 382,156
----------- ----------- ---------- ---------- ---------- --------
Receivables:
Employer's
contribution 59,692 10,726 11,186 6,678 7,739 6,556
Participants'
contributions 30,602 6,805 6,097 4,177 4,654 3,968
----------- ----------- ---------- ---------- ---------- --------
Total
receivables 90,294 17,531 17,283 10,855 12,393 10,524
----------- ----------- ---------- ---------- ---------- --------
NET ASSETS
AVAILABLE FOR
BENEFITS 2,798,354 711,443 536,714 366,453 382,268 392,680
=========== =========== ========== ========== ========== ========
<FN>
These financial statements should be read only in connection
with the accompanying notes to financial statements.
/TABLE
<PAGE>
<PAGE>
ENVIRODYNE INDUSTRIES, INC. RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION - PART 2
December 31, 1996
<TABLE>
<CAPTION>
Envirodyne
Lifetime Lifetime Lifetime Lifetime Stock Loan
20 30 40 50 Fund Fund Other Total
---------- -------- ----------- -------- --------- -------- -------- ----------
$ $ $ $ $ $ $ $
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments,
at fair value:
Cash transaction
account 1,847 1,847
Pooled investment
accounts
(Cost, $5,097,388) 94,125 144,466 87,980 155,851 5,511,454
Common stock
(Cost, $346,000) 375,197 375,197
Participant
notes
receivable 241,907 241,907
---------- --------- ---------- --------- -------- -------- ------ ----------
Total
investments 94,125 144,466 87,980 155,851 375,197 241,907 1,847 6,130,405
---------- --------- ---------- --------- -------- -------- ------ ----------
Receivables:
Employer's
contribution 2,566 4,761 2,513 2,765 3,983 119,165
Participants'
contributions 1,382 2,829 1,304 1,384 2,371 65,573
---------- -------- ----------- --------- -------- -------- ------ ----------
Total
receivables 3,948 7,590 3,817 4,149 6,354 184,738
---------- -------- ----------- --------- -------- -------- ------ ----------
NET ASSETS
AVAILABLE FOR
BENEFITS 98,073 152,056 91,797 160,000 381,551 241,907 1,847 6,315,143
========== ======== =========== ========= ======== ======== ====== ==========
<FN>
These financial statements should be read only in connection
with the accompanying notes to financial statements.
/TABLE
<PAGE>
<PAGE>
<TABLE>
ENVIRODYNE INDUSTRIES INC. RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION - PART 1
For the Year Ended December 31, 1997
<CAPTION>
Fidelity 20th Warburg Warburg
Guaranteed Growth Fidelity Century Growth & Inter-
Long Term Advisor Puritan Ultra Income national
----------- ----------- ---------- ---------- -------- ----------
$ $ $ $ $ $
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS TO
NET ASSETS
ATTRIBUTED TO:
Investment income:
Net unrealized
appreciation
(depreciation)
in fair value
of investments 172,870 80,044 97,092 41,126 94,552 (36,286)
Net realized gain
from sale
of investments 133,744 28,512 35,037 12,468 11,803
Interest income
---------- ----------- ---------- ---------- ---------- ---------
Total investment
income (loss) 172,870 213,788 125,604 76,163 107,020 (24,483)
---------- ----------- ---------- ---------- ---------- ---------
Contributions:
Employer 209,457 47,217 44,076 34,070 29,761 28,004
Participants 405,788 94,903 87,243 79,345 60,084 55,213
---------- ----------- ---------- ---------- ---------- ---------
Total
contributions 615,245 142,120 131,319 113,415 89,845 83,217
---------- ----------- ---------- ---------- ---------- ---------
Interfund transfers (202,940) 27,738 33,055 (44,688) (63,392) (20,194)
Participant loan
payments received 79,418 11,687 17,180 3,869 7,353 6,227
---------- ----------- ---------- ---------- ---------- ---------
(123,522) 39,425 50,235 (40,819) (56,039) (13,967)
---------- ----------- ---------- ---------- ---------- ---------
TOTAL ADDITIONS 664,593 395,333 307,158 148,759 140,826 44,767
---------- ----------- ---------- ---------- ---------- ---------
DEDUCTIONS FROM NET
ASSETS ATTRIBUTED
TO:
Benefits paid to
participants 149,300 66,686 25,024 26,851 5,456 39,049
Administrative
fees 3,512 280 873 287 388 344
Loans to
participants 120,569 12,842 23,595 17,334 9,501 7,110
---------- ----------- ---------- ---------- ---------- ---------
TOTAL DEDUCTIONS 273,381 79,808 49,492 44,472 15,345 46,503
---------- ----------- ---------- ---------- ---------- ---------
NET INCREASE
(DECREASE) IN
NET ASSETS
AVAILABLE FOR
BENEFITS 391,212 315,525 257,666 104,287 125,481 (1,736)
NET ASSETS
AVAILABLE FOR
BENEFITS,
BEGINNING OF
YEAR 2,798,354 711,443 536,714 366,453 382,268 392,680
---------- ----------- ---------- ---------- ---------- ---------
NET ASSETS
AVAILABLE FOR
BENEFITS,
END OF YEAR 3,189,566 1,026,968 794,380 470,740 507,749 390,944
========== =========== ========== ========== ========== =========
<FN>
These financial statements should be read only in connection with the
notes to accompanying financial statements.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
ENVIRODYNE INDUSTRIES INC. RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION - PART 2
For the Year Ended December 31, 1997
<CAPTION>
Envirodyne
Lifetime Lifetime Lifetime Lifetime Stock Loan
20 30 40 50 Fund Fund Other Total
---------- -------- ----------- -------- --------- -------- -------- ----------
$ $ $ $ $ $ $ $
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS TO
NET ASSETS
ATTRIBUTED TO:
Investment income:
Net unrealized
appreciation
(depreciation)
in fair value
of investments 3,412 12,320 12,332 20,739 36,896 535,097
Net realized gain
from sale
of investments 14,793 9,235 2,238 2,922 23,768 274,520
Interest income 25,814 25,814
---------- --------- ---------- --------- -------- -------- ------ ----------
Total investment
income (loss) 18,205 21,555 14,570 23,661 60,664 25,814 835,431
---------- --------- ---------- --------- -------- -------- ------ ----------
Contributions:
Employer 9,529 14,305 11,089 9,855 48,272 485,635
Participants 25,382 26,327 19,703 15,139 107,809 976,936
---------- --------- ---------- --------- -------- -------- ------ ----------
Total
contributions 34,911 40,632 30,792 24,994 156,081 1,462,571
---------- --------- ---------- --------- -------- -------- ------ ----------
Interfund transfers (37,001) (22,285) (2,614) (12,899) 371,034 (25,814)
Participant loan
payments received 2,608 4,085 3,316 895 7,289 (143,927)
---------- --------- ---------- --------- -------- -------- ------ ----------
(34,393) (18,200) 702 (12,004) 378,323 (169,741)
---------- --------- ---------- --------- -------- -------- ------ ----------
TOTAL ADDITIONS 18,723 43,987 46,064 36,651 595,068 (143,927) 2,298,002
---------- --------- ---------- --------- -------- -------- ------ ----------
DEDUCTIONS FROM NET
ASSETS ATTRIBUTED
TO:
Benefits paid to
participants 15,677 6,624 6,343 1,953 280 6,172 1,847 351,262
Administrative
fees 127 199 147 80 237 6,474
Loans to
participants 3,548 12,977 7,296 4,480 12,833 (232,445)
---------- --------- ---------- --------- -------- -------- ------ ----------
TOTAL DEDUCTIONS 19,352 19,800 13,786 6,873 13,350 (226,273) 1,847 357,736
---------- --------- ---------- --------- -------- -------- ------ ----------
NET INCREASE
(DECREASE) IN
NET ASSETS
AVAILABLE FOR
BENEFITS (629) 24,187 32,278 29,778 581,718 82,346 (1,847) 1,940,266
NET ASSETS
AVAILABLE FOR
BENEFITS,
BEGINNING OF
YEAR 98,073 152,056 91,797 160,000 381 551 241,907 1,847 6,315,143
---------- --------- ---------- --------- -------- -------- ------ ----------
NET ASSETS
AVAILABLE FOR
BENEFITS,
END OF YEAR 97,444 176,243 124,075 189,778 963,269 324,253 8,255,409
========== ========= ========== ========= ======== ======== ====== ==========
<FN>
These financial statements should be read only in connection with the
notes to accompanying financial statements.
/TABLE
<PAGE>
<PAGE>
<TABLE>
ENVIRODYNE INDUSTRIES INC. RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION - PART 1
For the Year Ended December 31, 1996
<CAPTION>
Fidelity 20th Warburg Warburg
Guaranteed Growth Fidelity Century Growth & Inter-
Long Term Advisor Puritan Ultra Income national
----------- ----------- ---------- ---------- -------- ----------
$ $ $ $ $ $
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS TO
NET ASSETS
ATTRIBUTED TO:
Investment income:
Net unrealized
appreciation
(depreciation)
in fair value
of investments 153,700 37,591 39,933 12,111 (32,460) 9,628
Net realized gain
(loss) from sale
of investments 74,957 22,693 23,222 20,704 25,541
Interest income
----------- ----------- ---------- ---------- ---------- ---------
Total investment
income (loss) 153,700 112,548 62,626 35,333 (11,756) 35,169
----------- ----------- ---------- ---------- ---------- ---------
Contributions:
Employer 214,405 48,824 44,666 26,048 36,688 35,088
Participants 392,611 100,072 83,895 58,490 78,040 78,251
----------- ----------- ---------- ---------- ---------- ---------
Total
contributions 607,016 148,896 128,561 84,538 114,728 113,339
----------- ----------- ---------- ---------- ---------- ---------
Interfund transfers (260,188) (17,984) (16,770) 79,272 (50,303) (35,131)
Participant loan
payments received 29,280 4,949 5,367 2,428 3,584 3,164
----------- ----------- ---------- ---------- ---------- ---------
(230,908) (13,035) (11,403) 81,700 (46,719) (31,967)
----------- ----------- ---------- ---------- ---------- ---------
TOTAL ADDITIONS 529,808 248,409 179,784 201,571 56,253 116,541
----------- ----------- ---------- ---------- ---------- ---------
DEDUCTIONS FROM
NET ASSETS
ATTRIBUTED TO:
Benefits paid to
participants 123,116 35,310 29,988 27,118 70,707 61,820
Administrative
fees 3,932 473 740 219 247 381
Loans to
participants 130,048 24,942 32,989 5,060 15,908 17,035
----------- ----------- ---------- ---------- ---------- ---------
TOTAL DEDUCTIONS 257,096 60,725 63,717 32,397 86,862 79,236
----------- ----------- ---------- ---------- ---------- ---------
NET INCREASE
(DECREASE) IN
NET ASSETS
AVAILABLE FOR
BENEFITS 272,712 187,684 116,067 169,174 (30,609) 37,305
NET ASSETS
AVAILABLE FOR
BENEFITS,
BEGINNING OF
YEAR 2,525,642 523,759 420,647 197,279 412,877 355,375
----------- ----------- ---------- ---------- ---------- ---------
NET ASSETS
AVAILABLE FOR
BENEFITS,
END OF YEAR 2,798,354 711,443 536,714 366,453 382,268 392,680
=========== =========== ========== ========== ========== =========
<FN>
These financial statements should be read only in connection with the
notes to accompanying financial statements.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
ENVIRODYNE INDUSTRIES INC. RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION - PART 2
For the Year Ended December 31, 1996
<CAPTION>
Envirodyne
Lifetime Lifetime Lifetime Lifetime Stock Loan
20 30 40 50 Fund Fund Other Total
---------- -------- ----------- -------- --------- -------- -------- ----------
$ $ $ $ $ $ $ $
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS TO
NET ASSETS
ATTRIBUTED TO:
Investment income:
Net unrealized
appreciation
(depreciation)
in fair value
of investments 5,122 8,603 (3,091) (5,376) 29,195 254,956
Net realized gain
(loss) from sale
of investments 3,931 4,041 12,741 26,071 1 213,902
Interest income 10,455 10,455
---------- --------- ---------- --------- -------- -------- ------ ----------
Total investment
income (loss) 9,053 12,644 9,650 20,695 29,196 10,455 479,313
---------- --------- ---------- --------- -------- -------- ------ ----------
Contributions:
Employer 9,994 16,205 9,234 11,384 5,216 457,752
Participants 19,392 30,180 14,695 18,735 5,076 1,847 881,284
---------- --------- ---------- --------- -------- -------- ------ ----------
Total
contributions 29,386 46,385 23,929 30,119 10,292 1,847 1,339,036
---------- --------- ---------- --------- -------- -------- ------ ----------
Interfund transfers (5,650) 4,427 (1,969) (27,122) 341,873 (10,455)
Participant loan
payments received 1,814 2,677 938 67 190 (54,458)
---------- --------- ---------- --------- -------- -------- ------ ----------
(3,836) 7,104 (1,031) (27,055) 342,063 (64,913)
---------- --------- ---------- --------- -------- -------- ------ ----------
TOTAL ADDITIONS 34,603 66,133 32,548 23,759 381,551 (54,458) 1,847 1,818,349
---------- --------- ---------- --------- -------- -------- ------ ----------
DEDUCTIONS FROM
NET ASSETS
ATTRIBUTED TO:
Benefits paid to
participants 248 12,753 3,878 41,611 4,959 411,508
Administrative
fees 139 227 82 140 6,580
Loans to
participants 3,922 8,554 7,781 1,137 (247,376)
---------- --------- ---------- --------- -------- -------- ------ ----------
TOTAL DEDUCTIONS 4,309 21,534 11,741 42,888 (242,417) 418,088
---------- --------- ---------- --------- -------- -------- ------ ----------
NET INCREASE
(DECREASE) IN
NET ASSETS
AVAILABLE FOR
BENEFITS 30,294 44,599 20,807 (19,129) 381,551 187,959 1,847 1,400,261
NET ASSETS
AVAILABLE FOR
BENEFITS,
BEGINNING OF
YEAR 67,779 107,457 70,990 179,129 53,948 4,914,882
---------- --------- ---------- --------- -------- -------- ------ ----------
NET ASSETS
AVAILABLE FOR
BENEFITS,
END OF YEAR 98,073 152,056 91,797 160,000 381,551 241,907 1,847 6,315,143
========== ========= ========== ========= ======== ======== ====== ==========
<FN>
These financial statements should be read only in connection with the
notes to accompanying financial statements.
</TABLE>
<PAGE>
ENVIRODYNE INDUSTRIES, INC. RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 1997 and 1996
NOTE 1 - DESCRIPTION OF THE PLAN
- --------------------------------
The following description of the Envirodyne Industries, Inc.
Retirement Savings Plan ("the Plan") provides only general
information. Participants should refer to the Plan agreement for
a more complete description of the Plan's provisions.
General
The Plan is a defined contribution plan established to provide
deferred compensation benefits to eligible employees. Under the
Plan, all of the employees of Envirodyne Industries, Inc.
("Employer") and its participating subsidiaries who have met
eligibility requirements may elect to participate in the Plan.
Employees who are covered by a collective bargaining agreement will
be eligible only if their participation is provided for in the
agreement. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA).
Participation
Eligible employees may become Plan members on the first day of
January, April, July or October following six months from their
date of hire.
Contributions
Participating employees, by means of authorized payroll deductions,
make contributions to the Plan in amounts based upon a percentage
of their compensation. These contributions cannot be less than two
percent (2%) nor greater than fifteen percent (15%) of the
participant's compensation. Employer contributions to the Plan are
made in varying proportions and are based upon the percent of the
participant's contributions and the participant's years of credited
service. At the discretion of the Employer, there also may be an
employer profit sharing contribution for active participants at the
end of the plan year.
Vesting
Participant contributions plus the earnings thereon are fully
vested. Vesting in the Employer contributions and the earnings
thereon is based on years of credited service. A participant is
100% vested after five years of credited service. If a participant
attains age 65, or becomes permanently and totally disabled, or
dies, the full value of the Employer contribution account becomes
immediately vested and is nonforfeitable.
Allocations
Investment income is allocated based on account balances as defined
by the Plan.
The Employer profit sharing contribution is allocated to
participants based upon their annual compensation as a percentage
of the total annual compensation for all participants.
Amounts allocated to accounts of persons who have elected to
withdraw from the Plan but have not been paid as of December 31,
1997 and 1996 are $3,732 and $33,932, respectively.
Participant Notes Receivable
Participants may borrow from their fund accounts a maximum equal to
the lesser of $50,000 or 50% of their vested account balance. All
loans must be repaid within five years. The loans are secured by
the balance in the participant's account and bear interest at a
rate determined by the plan administrator equal to 1% over the
prime interest rate. Principal and interest is paid ratably
through payroll deductions.
Payment of Benefits
Distribution of account balance is made in a single sum payment.
Rollover Contributions
The rollover contributions represent lump sum benefits received by
certain employees from another organization's pension or profit
sharing plan, or from the Envirodyne Employee Thrift Plan. The
Plan allows a participant to contribute these benefits in 10%
increments to the plan funds. Rollover contributions are included
in employee contributions in the statement of changes in net assets
available for benefits with fund information. A rollover
contribution is payable upon retirement, termination of employment,
death or disability.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
- ---------------------------------------------------
Use of Estimates in Preparing Financial Statements
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of additions and deductions during the reporting
period. Actual results could differ from those estimates.
Investments
Quoted market prices are used to value investments. Investments are
stated at fair value. Participant notes receivable are valued at
cost which approximates market value.
Investment transactions are reflected on a trade-date basis.
Realized gains or losses on sales of securities are based on
revalued cost. Income from investments is recorded as earned on an
accrual basis. Cost is determined on an average-cost basis.
Risks and Uncertainties
The Plan provides for various investment options in any combination
of Envirodyne Industries, Inc. common stock and numerous pooled
investment accounts. Investment securities are exposed to various
risks, such as interest rate, market, and credit risks. Due to the
level of risk associated with certain investment securities, it is
at least reasonably possible that changes in the values of
investment securities will occur in the near term and that such
changes could materially affect participants' account balances and
the amounts reported in the statement of net assets available for
benefits with fund information.
Administrative Expenses
Expenses of the Plan other than brokerage commissions, which are
included in the cost of the investments and loan fees, which are
paid directly by the Plan, are paid by the Employer. Although the
Employer has elected to pay these expenses, it is not obligated to
do so. If the Employer ceases to pay all or part of these expenses
in the future, they will be paid by the Plan's trustee out of the
assets of the Plan.
Forfeitures
Forfeitures are recorded as a reduction to the aggregate Employer
contributions in the year they occur. For the years ended December
31, 1997 and 1996, forfeitures amounted to $13,961 and $2,567,
respectively.
Payment of Benefits
Benefits are recorded when paid.
NOTE 3 - INVESTMENT PROGRAM
- ---------------------------
The Plan provides for investment election alternatives allowing
participant contributions to be invested in certain individual
programs as directed by each participant in 10% increments.
Participants may change their investment elections up to four times
a year as provided in the Plan. Employer contributions are invested
in the same proportion as the participants' contributions. The
investment options are as follows:
GUARANTEED LONG TERM FUND - The assets of this account are invested
in a diversified portfolio of high quality, fixed income
instruments (primarily intermediate bonds and commercial mortgages
within Connecticut General's General Account). Principal and
interest are fully guaranteed by the Connecticut General Life
Insurance Company. The objective of this account is to provide
stable returns and to preserve the principal investment.
FIDELITY GROWTH ADVISOR - The assets of this account are
exclusively invested in the Fidelity Advisory Growth Opportunities
Fund which invests mostly in common stocks and also in preferred
stocks and bonds. This account seeks to provide long-term capital
appreciation.
FIDELITY PURITAN FUND - The assets of this account are exclusively
invested in the Fidelity Puritan Fund which invests in a
diversified portfolio of securities including stocks, bonds and
short-term investments. The objective of this account is to
preserve capital and provide current income while seeking long-term
growth of capital and income.
TWENTIETH CENTURY ULTRA - The assets of this account are
exclusively invested in the American Century-Twentieth Century
Ultra Fund which invests primarily in common stocks of companies
with accelerating earnings and revenues. This account seeks to
provide capital growth over time.
WARBURG GROWTH AND INCOME - The assets of this account are
exclusively invested in the Warburg Pincus Advisor Growth & Income
Fund which invests in dividend-paying equity securities, including
common stocks and other marketable securities as well as fixed
income securities. This account seeks to provide long-term capital
appreciation.
WARBURG INTERNATIONAL - The assets of this account are exclusively
invested in the Warburg Pincus Advisor International Equity Account
which invests primarily in common stocks, debt securities and
preferred stocks of companies based outside the United States. The
objective of the account is to achieve long-term capital
appreciation through international diversification.
LIFETIME 20 - The assets of this account are invested 80% in stocks
and 20% in bonds. The stock accounts are CIGNA separate accounts
which invest in Fidelity Advisor Growth Opportunities, Warburg
Pincus Advisor Emerging Growth and Warburg Pincus Advisor
International Equity. The bond separate accounts are CIGNA Actively
Managed (Core) Fixed Income and CIGNA High Yield Bond Fund. This
account seeks to provide long-term capital appreciation.
LIFETIME 30 - The assets of this account are invested 70% in stocks
and 30% in bonds. The stock accounts are CIGNA separate accounts
which invest in Fidelity Advisor Growth Opportunities, CIGNA Growth
& Income, Warburg Pincus Advisor Emerging Growth and Warburg Pincus
Advisor International Equity. The bond separate accounts are CIGNA
Actively Managed (Core) Fixed Income and CIGNA High Yield Bond
Fund. This account seeks to provide long-term capital appreciation.
LIFETIME 40 - The assets of this account are invested 65% in stocks
and 35% in bonds. The stock accounts are CIGNA separate accounts
which invest in Fidelity Advisor Growth Opportunities, CIGNA Growth
& Income, Vanguard Quantitative Portfolios, Warburg Pincus Advisor
Emerging Growth and Warburg Pincus Advisor International Equity.
The bond separate accounts are CIGNA Actively Managed (Core) Fixed
Income and CIGNA High Yield Bond Fund. This account seeks to
provide long-term capital appreciation with a secondary emphasis on
income and capital stability.
LIFETIME 50 - The assets of this account are invested 55% in stocks
and 45% in bonds. The stock accounts are CIGNA separate accounts
which invest in Fidelity Advisor Growth Opportunities, CIGNA Growth
& Income, Vanguard Quantitative Portfolios, Warburg Pincus Advisor
Emerging Growth and Warburg Pincus Advisor International Equity.
The bond separate accounts are CIGNA Actively Managed (Core) Fixed
Income and CIGNA High Yield Bond Fund.
ENVIRODYNE STOCK FUND - The assets of the Envirodyne Stock Fund are
exclusively invested in Envirodyne Industries, Inc. Common Stock.
At December 31, 1997 and 1996, there were 470 and 455 participants,
respectively, invested in one or more of the Plan's investment
accounts. Following is the number of participants investing in
each account:
1997 1996
-------- --------
Guaranteed Long-Term Fund 415 389
Fidelity Growth Advisor 137 118
Fidelity Puritan Fund 153 134
20th Century Ultra Fund 101 76
Warburg Growth & Income 85 80
Warburg International 95 94
Lifetime 20 36 28
Lifetime 30 57 47
Lifetime 40 32 29
Lifetime 50 24 19
Envirodyne Stock Fund 106 25
The number of units and the net asset value per unit for each
account are as follows:
1997 1996
------------------ ------------------
Net Asset Net Asset
Number Value Number Value
of Units Per Unit of Units Per Unit
-------- -------- -------- --------
Guaranteed Long-Term Fund 103,577 $ 30 94,527 $ 29
Fidelity Growth Advisor 16,682 61 14,519 48
Fidelity Puritan Fund 30,289 26 24,202 21
20th Century Ultra Fund 12,102 38 11,263 32
Warburg Growth & Income 24,038 21 22,821 16
Warburg International 17,556 22 16,422 23
Lifetime 20 5,825 16 6,602 14
Lifetime 30 10,593 16 10,252 14
Lifetime 40 7,703 16 6,416 14
Lifetime 50 12,070 16 11,519 14
Envirodyne Stock Fund 135,332 7 66,702 6
Participants may direct contributions to the Envirodyne Stock Fund
which invests in Envirodyne Industries, Inc. common stock, a
security of a participating employer. Investments in Envirodyne
Industries, Inc. common stock as of December 31, 1997 and 1996 were
$954,312 and $375,197, respectively. For the years ended December
31, 1997 and 1996, income from Envirodyne Industries, Inc. common
stock was $0; net unrealized appreciation in fair value of
Envirodyne Industries, Inc. common stock was $36,896 and $29,195,
respectively; and net realized gain from sale of Envirodyne
Industries, Inc. common stock was $23,768 and $1, respectively.
The following table presents the fair market value and book value
of the investments:
1997 1996
---------- ----------
Market Value $7,844,655 $5,886,651
Cost, net of previously recognized
appreciation and depreciation 7,309,558 5,631,695
---------- ----------
Net unrealized appreciation in fair
value of investments $ 535,097 $ 254,956
========== ==========
NOTE 4 - CONTRIBUTIONS
- ----------------------
Contributions to the Plan by Clear Shield National, Inc. and
Envirodyne Industries, Inc. are as follows:
1997
----------------------------------------------
Clear Shield Envirodyne
National, Inc. Industries, Inc. Total
------------- --------------- ----------
Employer $ 446,988 $ 38,647 $ 485,635
Participant 868,421 108,515 976,936
---------- -------- ----------
$1,315,409 $147,162 $1,462,571
========== ======== ==========
1996
----------------------------------------------
Clear Shield Envirodyne
National, Inc. Industries, Inc. Total
------------- --------------- ----------
Employer $ 419,511 $ 38,241 $ 457,752
Participant 767,570 113,714 881,284
---------- -------- ----------
$1,187,081 $151,955 $1,339,036
========== ======== ==========
NOTE 5 - FEDERAL INCOME TAXES
- -----------------------------
The Internal Revenue Service has determined and informed the
Employer by a letter dated July 9, 1997, that the Plan is qualified
and the trust established under the Plan is tax-exempt, under the
appropriate sections of the Code.
The following rules, among others, apply to distributions from the
Plan to participants under income tax laws in effect at December
31, 1997:
(i) A participant will not be subject to federal income
tax on Employer contributions or on the income or
gains realized on investments credited to his
account until such time as a distribution from the
Plan is paid or made available to him.
(ii) Upon the distribution to a participant of his
entire interest in the Plan within a single
calendar year, the total amount distributed, after
excluding the amount of the participant's
contributions, will be subject to federal income
tax as ordinary income in the year of distribution.
(iii) An additional tax equal to 10% of the taxable amount
will be imposed in most instances where the
distribution is payable to a recipient below the
age of 59-1/2 for reasons other than death,
disability, or to pay deductible medical expenses.
NOTE 6 - NET REALIZED GAIN FROM SALE OF INVESTMENTS
- ---------------------------------------------------
The net realized gain from sale of investments was computed as
follows:
1997 1996
----------- -----------
Proceeds from sale $ 1,592,360 $ 1,894,846
Cost 1,317,840 1,680,944
----------- -----------
Net realized gain $ 274,520 $ 213,902
=========== ===========
<PAGE>
<PAGE>
NOTE 7 - INVESTMENTS REPRESENTING FIVE PERCENT OR MORE OF NET
ASSETS AVAILABLE FOR BENEFITS
- ---------------------------------------------------------------
Investments representing five percent or more of net assets available
for plan benefits were as follows:
<TABLE>
<CAPTION>
December 31, 1997
-----------------
Identity of Issue Description Value
- ---------------------------- --------------------------------- -------------
<S> <C> <C>
Connecticut General Life Ins. Guaranteed Long Term Fund $3,149,066
Connecticut General Life Ins. Fidelity Growth Advisor 1,019,375
Connecticut General Life Ins. Fidelity Puritan Fund 787,073
Connecticut General Life Ins. Twentieth Century Ultra Fund 465,770
Connecticut General Life Ins. Warburg Growth & Income 503,028
Envirodyne Industries, Inc. Envirodyne Stock Fund 954,312
</TABLE>
<TABLE>
<CAPTION>
December 31, 1996
-----------------
Identity of Issue Description Value
- ---------------------------- --------------------------------- -------------
<S> <C> <C>
Connecticut General Life Ins. Guaranteed Long Term Fund $2,708,060
Connecticut General Life Ins. Fidelity Growth Advisor 693,912
Connecticut General Life Ins. Fidelity Puritan Fund 519,431
Connecticut General Life Ins. Twentieth Century Ultra Fund 355,598
Connecticut General Life Ins. Warburg Growth & Income 369,875
Connecticut General Life Ins. Warburg International 382,156
Envirodyne Industries, Inc. Envirodyne Stock Fund 375,197
/TABLE
<PAGE>
NOTE 8 - PLAN TERMINATION
- -------------------------
The Employer reserves the right to alter, amend, or terminate the
Plan. In the event of Plan termination, participants will become
100% vested in their accounts. Presently, there is no intention on
the part of the Employer to terminate the Plan.
NOTE 9 - SUBSEQUENT EVENT
- -------------------------
Subsequent to December 31, 1997, the Employer entered into an
agreement with an unrelated party which is intended to result in
the ultimate sale of one of the sponsoring employers to the
unrelated party.
This information is an integral part of the accompanying financial
statements.
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
SUPPLEMENTAL INFORMATION
------------------------
ENVIRODYNE INDUSTRIES, INC. RETIREMENT SAVINGS PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES - ITEM 27(a) FORM 5500
December 31, 1997
Plan Name: Envirodyne Retirement Savings Plan
EIN: 95-2677354
Plan Number: 002
(a)
Asterisk if
party-in (b) Identity of issue, borrower, (e) Fair
Interest lessor or similar party (c) Description (d) Cost Value
- ---------- ---------------------------------- ----------------------------------------- ----------- -------------
<S> <C> <C> <C> <C>
* Connecticut General Life Ins. Guaranteed Long Term Fund $3,149,066 $3,149,066
* Connecticut General Life Ins. Fidelity Growth Advisor 803,786 1,019,375
* Connecticut General Life Ins. Fidelity Puritan Fund 591,293 787,073
* Connecticut General Life Ins. Twentieth Century Ultra Fund 375,372 465,770
* Connecticut General Life Ins. Warburg Growth & Income 395,469 503,028
* Connecticut General Life Ins. Warburg International 368,387 386,604
* Connecticut General Life Ins. Lifetime 20 75,572 95,893
* Connecticut General Life Ins. Lifetime 30 135,712 173,370
* Connecticut General Life Ins. Lifetime 40 104,267 122,223
* Connecticut General Life Ins. Lifetime 50 151,755 187,941
* Envirodyne Industries, Inc. Envirodyne Industries, Inc. Stock Fund 882,749 954,312
Outstanding Participant Loan - 324,253
---------- ----------
$7,033,428 $8,168,908
========== ==========
/TABLE
<PAGE>
<PAGE>
<TABLE>
ENVIRODYNE INDUSTRIES, INC. RETIREMENT SAVINGS PLAN
SCHEDULE OF REPORTABLE TRANSACTIONS - ITEM 27(d), FORM 5500
December 31, 1997
Plan Name: Envirodyne Retirement Savings Plan
EIN: 95-2677354
Plan Number: 002
<CAPTION>
(b) Current
value of
(a) Identity assets on
of party (b) Description (c) Purchase (d) Selling (g) Cost of transaction (i) Net gain
Involved of Asset Price Price Asset date or (loss)
- ------------ --------------------------------- --------------- --------------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
CGLIC Guaranteed Long Term Fund $1,409,974 Not Applicable $1,409,974 $1,409,974 $0
CGLIC Guaranteed Long Term Fund Not Applicable $1,141,837 $1,141,837 $1,141,837 $0
CGLIC Fidelity Growth Advisor $907,046 Not Applicable $907,046 $907,046 $0
CGLIC Fidelity Growth Advisor Not Applicable $796,484 $662,739 $796,484 $133,745
CGLIC Fidelity Puritan Fund $261,696 Not Applicable $261,696 $261,696 $0
CGLIC Fidelity Puritan Fund Not Applicable $119,509 $90,997 $119,509 $28,512
CGLIC Twentieth Century Ultra Fund $232,950 Not Applicable $232,950 $232,950 $0
CGLIC Twentieth Century Ultra Fund Not Applicable $198,595 $163,559 $198,595 $35,036
Envirodyne Industries, Inc. $658,641 Not Applicable $658,641 $658,641 $0
Envirodyne Industries, Inc. Not Applicable $145,661 $121,894 $145,661 $23,767
</TABLE>
