<PAGE> 1
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, 1994
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from to
COMMISSION FILE NUMBER: 1-8247
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
SCHULLER INTERNATIONAL HOURLY EMPLOYEES THRIFT PLAN
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
Manville Corporation
717 17th Street
Denver, Colorado 80202
<PAGE> 2
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the trustees (or other persons who administer the Plan) have duly caused this
annual report to be signed by the undersigned hereunto duly authorized.
June 29, 1995
SCHULLER INTERNATIONAL HOURLY
EMPLOYEES THRIFT PLAN
By: /s/ Ann J. Henley
--------------------------------------
Ann J. Henley
Director, Benefits
<PAGE> 3
SCHULLER INTERNATIONAL HOURLY
EMPLOYEES THRIFT PLAN
------------------------
REPORT ON AUDIT OF FINANCIAL STATEMENTS
AS OF DECEMBER 31, 1994 AND 1993 AND FOR EACH OF THE THREE YEARS
IN THE PERIOD ENDED DECEMBER 31, 1994
<PAGE> 4
SCHULLER INTERNATIONAL HOURLY
EMPLOYEES THRIFT PLAN
INDEX TO FINANCIAL STATEMENTS
------------------------
<TABLE>
<CAPTION>
PAGES
----
<S> <C>
Report of Independent Accountants..................................................... 2
Financial Statements:
Statements of Net Assets Available for Benefits with Fund Information at
December 31, 1994 and 1993....................................................... 3-4
Statements of Changes in Net Assets Available for Benefits with Fund Information
for Each of the Three Years in the Period Ended December 31, 1994................ 5-8
Notes to Financial Statements....................................................... 9-14
</TABLE>
1
<PAGE> 5
REPORT OF INDEPENDENT ACCOUNTANTS
To the Compensation Committee
of the Board of Directors of Manville Corporation:
We have audited the accompanying statements of net assets available for
benefits of the Schuller International Hourly Employees Thrift Plan as of
December 31, 1994 and 1993 and the statements of changes in net assets available
for benefits for each of the three years in the period ended December 31, 1994.
These financial statements are the responsibility of the Company'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 Schuller
International Hourly Employees Thrift Plan at December 31, 1994 and 1993, and
the changes in net assets available for benefits for each of the three years in
the period ended December 31, 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 Fund Information in the
statement of net assets available for benefits and the statement 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
changes in net assets available for plan benefits of each fund. The Fund
Information has 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.
COOPERS & LYBRAND
Denver, Colorado
June 23, 1995
2
<PAGE> 6
SCHULLER INTERNATIONAL HOURLY
EMPLOYEES THRIFT PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
DECEMBER 31, 1994 AND 1993
<TABLE>
<CAPTION>
FIDELITY
RETIREMENT FIDELITY
GOVERNMENT MANAGED FIDELITY FIDELITY FIDELITY FIDELITY FIDELITY
MONEY INCOME ASSET DISCIPLINED VALUE MAGELLAN OTC
1994 MARKET PORTFOLIO II MANAGER EQUITY FUND FUND FUND PORTFOLIO
- ------------------------------------ ---------- ------------ ---------- ----------- -------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments (Notes 3, 4 and 5):
Commingled funds, at market value:
Fidelity Retirement Government
Money Market (cost $694,450)... $694,450
Managed Income Portfolio II
(cost $630,064)................ $630,064
Fidelity Asset Manager
(cost $1,038,388).............. $ 990,462
Fidelity Disciplined Equity
(cost $901,725)................ $ 898,593
Fidelity Value Fund
(cost $446,119)................ $431,552
Fidelity Magellan Fund
(cost $1,777,784).............. $1,760,584
Fidelity OTC Portfolio
(cost $223,007)................ $227,177
Fidelity International Growth &
Income Fund (cost $392,356)....
RVW Stock Pool (cost $6,347).......
Loans to Plan members, at cost.....
Due from associated funds........... 1,340 1,735 2,311 1,849 1,482 3,890 481
Contributions receivable:
Plan members....................... 16,460 13,397 27,941 21,322 11,402 47,859 6,478
Company............................ 2,420 1,830 3,281 2,603 1,311 5,935 865
Cash and accrued income receivable
(Note 3)...........................
-------- -------- ---------- --------- -------- ---------- --------
Total assets................. 714,670 647,026 1,023,995 924,367 445,747 1,818,268 235,001
LIABILITIES
Payable to associated funds.........
-------- -------- ---------- --------- -------- ---------- --------
Net assets available for benefits... $714,670 $647,026 $1,023,995 $ 924,367 $445,747 $1,818,268 $235,001
======== ======== ========== ========= ======== ========== ========
<CAPTION>
FIDELITY
INTERNATIONAL RVW
GROWTH & STOCK LOAN COMBINED
1994 INCOME FUND POOL ACCOUNT TOTAL
- ------------------------------------ ------------- ------ -------- ----------
<S> <C> <C> <C> <C>
ASSETS
Investments (Notes 3, 4 and 5):
Commingled funds, at market value:
Fidelity Retirement Government
Money Market (cost $694,450)... $ 694,450
Managed Income Portfolio II
(cost $630,064)................ 630,064
Fidelity Asset Manager
(cost $1,038,388).............. 990,462
Fidelity Disciplined Equity
(cost $901,725)................ 898,593
Fidelity Value Fund
(cost $446,119)................ 431,552
Fidelity Magellan Fund
(cost $1,777,784).............. 1,760,584
Fidelity OTC Portfolio
(cost $223,007)................ 227,177
Fidelity International Growth &
Income Fund (cost $392,356).... $ 370,156 370,156
RVW Stock Pool (cost $6,347)....... $7,117 7,117
Loans to Plan members, at cost..... $322,726 322,726
Due from associated funds........... 828 13,916
Contributions receivable:
Plan members....................... 12,732 157,591
Company............................ 1,908 20,153
Cash and accrued income receivable
(Note 3)........................... 1,954 1,954
--------- ------ -------- ----------
Total assets................. 385,624 7,117 324,680 6,526,495
LIABILITIES
Payable to associated funds......... 13,916 13,916
--------- ------ -------- ----------
Net assets available for benefits... $ 385,624 $7,117 $310,764 $6,512,579
========= ====== ======== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE> 7
SCHULLER INTERNATIONAL HOURLY
EMPLOYEES THRIFT PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
DECEMBER 31, 1994 AND 1993
<TABLE>
<CAPTION>
U.S. IDS IDS IDS
GOVERNMENT IDS NEW BLUE CHIP ASSET TRUST RVW
SECURITIES STOCK DIMENSIONS ADVANTAGE ALLOCATION INCOME STOCK LOAN COMBINED
1993 FUND FUND FUND FUND FUND FUND II POOL ACCOUNT TOTAL
- --------------------------- ---------- -------- -------- --------- -------- ------------ ------ -------- ----------
ASSETS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investments (Notes 3, 4 and
5):
Commingled funds, at
market value:
U.S. Government
Securities
(approximates cost)... $641,575 $ 641,575
IDS Stock (cost
$528,211)............. $520,110 520,110
IDS New Dimensions (cost
$713,274)............. $746,024 746,024
IDS Blue Chip Advantage
(cost $301,879)....... $304,326 304,326
Asset Allocation (cost
$446,697)............. $453,010 453,010
Income (cost
$989,966)............. $ 988,922 988,922
RVW Stock Pool (cost
$6,783)................. $8,092 8,092
Loans to Plan members, at
cost (approximates
market)................. $141,651 141,651
Due from associated
funds..................... 634 543 1,584 344 956 1,921 5,982
Contributions receivable:
Plan members............ 24,054 21,693 39,100 17,879 18,225 34,319 155,270
Company................. 3,258 2,668 3,965 1,994 2,369 4,915 19,169
Cash and accrued income
receivable
(Note 3).................. 1,474 173 71 1,718
-------- -------- -------- -------- -------- ---------- ------ -------- ----------
Total assets........ 670,995 545,014 790,673 324,543 474,733 1,030,077 8,163 141,651 3,985,849
LIABILITIES
Payable to associated
funds..................... 5,982 5,982
Payable to trustee......... 430 430
-------- -------- -------- -------- -------- ---------- ------ -------- ----------
Total liabilities... 430 5,982 6,412
-------- -------- -------- -------- -------- ---------- ------ -------- ----------
Net assets available for
benefits.................. $670,995 $545,014 $790,673 $324,543 $474,733 $1,029,647 $8,163 $135,669 $3,979,437
======== ======== ======== ======== ======== ========== ====== ======== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE> 8
SCHULLER INTERNATIONAL HOURLY
EMPLOYEES THRIFT PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
WITH FUND INFORMATION
FOR EACH OF THE THREE YEARS IN THE PERIOD ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
FIDELITY
U.S. IDS IDS RETIREMENT
GOVERNMENT IDS NEW BLUE CHIP ASSET GOVERNMENT MANAGED
SECURITIES STOCK DIMENSIONS ADVANTAGE ALLOCATION INCOME MONEY INCOME
1994 FUND FUND FUND FUND FUND FUND MARKET PORTFOLIO
- --------------------------- ---------- --------- ---------- --------- ---------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment Income:
Dividend income........... $ 4,680 $ 1,081 $ 27,390
Interest income........... $ 4,898 $ 13,790 $ 18,918 3
Net appreciation
(depreciation) in fair
value of investments
(Note 3)................ (26,196) $ (28,702) (11,939) $ (17,456) (3) 0 0
-------- --------- --------- --------- --------- ---------- --------- ----------
Total investment income
(loss).................... 4,898 (21,516) (28,702) (10,858) (17,456) 13,787 18,918 27,393
-------- --------- --------- --------- --------- ---------- --------- ----------
Transfer from predecessor
trustee (Note 1).......... 667,006 1,031,160
-------- --------- --------- --------- --------- ---------- --------- ----------
Contributions (Note 6):
By Plan members........... 34,546 34,277 63,637 28,794 27,539 49,264 211,359 178,402
By the Company............ 4,858 4,169 6,439 3,215 3,614 7,322 31,404 24,252
-------- --------- --------- --------- --------- ---------- --------- ----------
39,404 38,446 70,076 32,009 31,153 56,586 242,763 202,654
-------- --------- --------- --------- --------- ---------- --------- ----------
Transfers into fund from
associated funds.......... 16,270 34,138 34,493 6,599 17,680 9,719 158,072 117,448
-------- --------- --------- --------- --------- ---------- --------- ----------
Transfers out of fund to
associated funds.......... (45,810) (10,567) (34,850) (9,163) (16,367) (41,768) (370,472) (728,337)
-------- --------- --------- --------- --------- ---------- --------- ----------
Transfer to successor
trustee (Note 1).......... (667,006) (574,793) (817,048) (333,146) (477,881) (1,031,160)
-------- --------- --------- --------- --------- ---------- --------- ----------
Withdrawals and forfeitures
(Note 7).................. (18,751) (10,722) (14,642) (9,984) (11,862) (36,811) (1,539) (3,254)
-------- --------- --------- --------- --------- ---------- --------- ----------
Administrative expenses.... (78) (38)
-------- --------- --------- --------- --------- ---------- --------- ----------
Net (decrease) increase.... (670,995) (545,014) (790,673) (324,543) (474,733) (1,029,647) 714,670 647,026
Net assets available for
benefits:
Beginning of year....... 670,995 545,014 790,673 324,543 474,733 1,029,647 0 0
-------- --------- --------- --------- --------- ---------- --------- ----------
End of year............. $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 714,670 $ 647,026
======== ========= ========= ========= ========= ========== ========= ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE> 9
SCHULLER INTERNATIONAL HOURLY
EMPLOYEES THRIFT PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
WITH FUND INFORMATION -- (CONTINUED)
FOR EACH OF THE THREE YEARS IN THE PERIOD ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
FIDELITY FIDELITY
FIDELITY DISCIPLINED FIDELITY FIDELITY FIDELITY INTERNATIONAL
ASSET EQUITY VALUE MAGELLAN OTC GROWTH &
1994 MANAGER FUND FUND FUND PORTFOLIO INCOME
- ------------------------------------------------- ---------- --------- ---------- ----------- -------- -------------
<S> <C> <C> <C> <C> <C> <C>
Investment Income:
Dividend income................................. $ 28,243 $ 35,465 $ 23,748 $ 37,594 $ 1,982 $ 11,213
Interest income................................. 3 3 1 7 1 1
Net appreciation (depreciation) in fair value of
investments (Note 3).......................... (44,361) 16,147 (14,138) (25,285) 4,304 (23,052)
---------- --------- ---------- ----------- -------- ---------
Total investment income (loss)................... (16,115) 51,615 9,611 12,316 6,287 (11,838)
---------- --------- ---------- ----------- -------- ---------
Transfer from predecessor trustee (Note 1)....... 477,881 907,939 0 817,048 0 0
---------- --------- ---------- ----------- -------- ---------
Contributions (Note 6):
By Plan members............................... 372,898 291,428 144,530 647,747 88,258 168,523
By the Company................................ 43,520 35,126 16,521 80,278 11,412 26,138
---------- --------- ---------- ----------- -------- ---------
416,418 326,554 161,051 728,025 99,670 194,661
---------- --------- ---------- ----------- -------- ---------
Transfer into fund from associated funds......... 399,775 200,045 332,306 625,100 157,114 283,834
---------- --------- ---------- ----------- -------- ---------
Transfer out of fund to associated funds......... (250,272) (554,062) (41,816) (350,916) (23,731) (79,749)
---------- --------- ---------- ----------- -------- ---------
Transfer to successor trustee (Note 1)...........
---------- --------- ---------- ----------- -------- ---------
Withdrawals and forfeitures (Note 7)............. (3,632) (7,698) (15,390) (13,279) (4,335) (1,280)
---------- --------- ---------- ----------- -------- ---------
Administrative expenses.......................... (60) (26) (15) (26) (4) (4)
---------- --------- ---------- ----------- -------- ---------
Net (decrease) increase.......................... 1,023,995 924,367 445,747 1,818,268 235,001 385,624
Net assets available for benefits:
Beginning of year............................... 0 0 0 0 0 0
---------- --------- ---------- ----------- -------- ---------
End of year..................................... $1,023,995 $ 924,367 $ 445,747 $ 1,818,268 $235,001 $ 385,624
========== ========= ========== =========== ======== =========
<CAPTION>
RVW
STOCK LOAN COMBINED
1994 POOL ACCOUNT TOTAL
- ------------------------------------------------- ------- --------- -----------
<S> <C> <C> <C>
Investment Income:
Dividend income................................. $ 171,396
Interest income................................. $ 14,045 51,670
Net appreciation (depreciation) in fair value of
investments (Note 3).......................... (171,179)
$ (498)
------- --------- -----------
Total investment income (loss)................... (498) 14,045 51,887
------- --------- -----------
Transfer from predecessor trustee (Note 1)....... 7,807 176,722 4,085,563
------- --------- -----------
Contributions (Note 6):
By Plan members............................... 2,341,202
By the Company................................ 298,268
------- --------- -----------
0 0 2,639,470
------- --------- -----------
Transfer into fund from associated funds......... 279,093 2,671,686
------- --------- -----------
Transfer out of fund to associated funds......... (548) (113,258) (2,671,686)
------- --------- -----------
Transfer to successor trustee (Note 1)........... (7,807) (176,722) (4,085,563)
------- --------- -----------
Withdrawals and forfeitures (Note 7)............. (4,785) (157,964)
------- --------- -----------
Administrative expenses.......................... (251)
------- --------- -----------
Net (decrease) increase.......................... (1,046) 175,095 2,533,142
Net assets available for benefits:
Beginning of year............................... 8,163 135,669 3,979,437
------- --------- -----------
End of year..................................... $ 7,117 $ 310,764 $ 6,512,579
======= ========= ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE> 10
SCHULLER INTERNATIONAL HOURLY
EMPLOYEES THRIFT PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
WITH FUND INFORMATION
FOR EACH OF THE THREE YEARS IN THE PERIOD ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
U.S. IDS IDS IDS
GOVERNMENT IDS NEW BLUE CHIP ASSET TRUST
SECURITIES STOCK DIMENSIONS ADVANTAGE ALLOCATION INCOME
1993 FUND FUND FUND FUND FUND FUND II
- ------------------------------------------------ ----------- --------- ---------- --------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Investment Income:
Interest income................................ $ 14,301 $ 48,861
Dividend income................................ $ 56,668 $ 35,872 $ 21,774 $ 27,106
Net appreciation (depreciation) in fair value
of investments (Note 3)...................... 3,693 30,436 2,485 1,144 (46)
---------- --------- --------- -------- --------- -----------
Total investment income......................... 14,301 60,361 66,308 24,259 28,250 48,815
---------- --------- --------- -------- --------- -----------
Contributions (Note 6):
By Plan members................................ 246,128 202,543 367,008 163,934 184,773 347,321
By the Company................................. 31,861 24,307 36,169 17,423 23,109 49,147
---------- --------- --------- -------- --------- -----------
277,989 226,850 403,177 181,357 207,882 396,468
---------- --------- --------- -------- --------- -----------
Transfers into fund from associated funds....... 84,030 72,468 116,162 19,669 26,548 77,355
---------- --------- --------- -------- --------- -----------
Transfers out of fund to associated funds....... (105,122) (77,857) (81,132) (23,363) (47,659) (120,055)
---------- --------- --------- -------- --------- -----------
Transfer to successor trustee (Note 2).......... (1,335,155) (379,050) (427,272) (207,199) (249,739) (1,033,310)
---------- --------- --------- -------- --------- -----------
Withdrawals and forfeitures (Note 7)............ (12,781) (5,086) (10,017) (474) (4,574) (23,100)
---------- --------- --------- -------- --------- -----------
Net (decrease) increase......................... (1,076,738) (102,314) 67,226 (5,751) (39,292) (653,827)
Net assets available for benefits:
Beginning of year............................ 1,747,733 647,328 723,447 330,294 514,025 1,683,474
---------- --------- --------- -------- --------- -----------
End of year.................................. $ 670,995 $ 545,014 $ 790,673 $324,543 $ 474,733 $ 1,029,647
========== ========= ========= ======== ========= ===========
<CAPTION>
RVW
STOCK LOAN COMBINED
1993 POOL ACCOUNT TOTAL
- ------------------------------------------------ -------- -------- -----------
<S> <C> <C> <C>
Investment Income:
Interest income................................ $ 7,665 $ 70,827
Dividend income................................ 141,420
Net appreciation (depreciation) in fair value
of investments (Note 3)...................... $ 1,462 39,174
-------- -------- -----------
Total investment income......................... 1,462 7,665 251,421
-------- -------- -----------
Contributions (Note 6):
By Plan members................................ 1,511,707
By the Company................................. 182,016
-------- -------- -----------
1,693,723
-------- -------- -----------
Transfers into fund from associated funds....... 112,181 508,413
-------- -------- -----------
Transfers out of fund to associated funds....... (1,087) (52,138) (508,413)
-------- -------- -----------
Transfer to successor trustee (Note 2).......... (18,550) (122,362) (3,772,637)
-------- -------- -----------
Withdrawals and forfeitures (Note 7)............ (237) (4,422) (60,691)
-------- -------- -----------
Net (decrease) increase......................... (18,412) (59,076) (1,888,184)
Net assets available for benefits:
Beginning of year............................ 26,575 194,745 5,867,621
-------- -------- -----------
End of year.................................. $ 8,163 $135,669 $ 3,979,437
======== ======== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE> 11
SCHULLER INTERNATIONAL HOURLY
EMPLOYEES THRIFT PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
WITH FUND INFORMATION
FOR EACH OF THE THREE YEARS IN THE PERIOD ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
U.S. IDS IDS IDS
GOVERNMENT IDS NEW BLUE CHIP ASSET TRUST RVW
SECURITIES STOCK DIMENSIONS ADVANTAGE ALLOCATION INCOME STOCK
1992 FUND FUND FUND FUND FUND FUND II POOL
- ----------------------------------------------- ---------- --------- ---------- --------- ---------- ---------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment Income:
Interest income............................... $ 30,225 $ 139 $ 75,585
Dividend income............................... 63,827 $ 39,265 $ 14,677 $ 22,263
Net appreciation (depreciation) in fair value
of investments (Note 3)..................... (28,203) 17,463 2,035 11,776 $ (866)
---------- --------- --------- -------- -------- ---------- -------
Total investment income (loss)................. 30,225 35,763 56,728 16,712 34,039 75,585 (866)
---------- --------- --------- -------- -------- ---------- -------
Contributions (Note 6):
By Plan members............................... 487,310 324,196 543,613 280,855 260,482 706,647
By the Company................................ 92,243 57,422 91,230 49,328 43,050 134,942
---------- --------- --------- -------- -------- ---------- -------
579,553 381,618 634,843 330,183 303,532 841,589
---------- --------- --------- -------- -------- ---------- -------
Plan to plan transfers in...................... 792,467
---------- --------- --------- -------- -------- ---------- -------
Transfers into fund from associated funds...... 68,554 71,744 319,546 25,388 48,985 336,435 35,986
---------- --------- --------- -------- -------- ---------- -------
Transfers out of fund to associated funds...... (208,772) (111,605) (275,152) (34,483) (74,548) (365,300) (7,923)
---------- --------- --------- -------- -------- ---------- -------
Withdrawals and forfeitures (Note 7)........... (39,640) (14,025) (12,518) (7,506) (5,282) (45,836) (622)
---------- --------- --------- -------- -------- ---------- -------
Net increase................................... 1,222,387 363,495 723,447 330,294 306,726 842,473 26,575
Net assets available for benefits:
Beginning of year........................... 525,346 283,833 207,299 841,001
---------- --------- --------- -------- -------- ---------- -------
End of year................................. $1,747,733 $ 647,328 $ 723,447 $330,294 $514,025 $1,683,474 $26,575
========== ========= ========= ======== ======== ========== =======
<CAPTION>
LOAN COMBINED
1992 ACCOUNT TOTAL
- ----------------------------------------------- -------- -----------
<S> <C> <C>
Investment Income:
Interest income............................... $ 5,364 $ 111,313
Dividend income............................... 140,032
Net appreciation (depreciation) in fair value
of investments (Note 3)..................... 2,205
-------- -----------
Total investment income (loss)................. 5,364 253,550
-------- -----------
Contributions (Note 6):
By Plan members............................... 2,603,103
By the Company................................ 468,215
-------- -----------
3,071,318
-------- -----------
Plan to plan transfers in...................... 792,467
-------- -----------
Transfers into fund from associated funds...... 224,869 1,131,507
-------- -----------
Transfers out of fund to associated funds...... (53,724) (1,131,507)
-------- -----------
Withdrawals and forfeitures (Note 7)........... (125,429)
-------- -----------
Net increase................................... 176,509 3,991,906
Net assets available for benefits:
Beginning of year........................... 18,236 1,875,715
-------- -----------
End of year................................. $194,745 $ 5,867,621
======== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE> 12
SCHULLER INTERNATIONAL HOURLY
EMPLOYEES THRIFT PLAN
NOTES TO FINANCIAL STATEMENTS
1. PLAN DESCRIPTION:
The Schuller International Hourly Employees Thrift Plan (the "Plan"),
formerly the Manville Hourly Employees Thrift Plan, provides eligible union
hourly employees a convenient means for regular and systematic savings with
several investment options. The Plan was offered as part of collective
bargaining agreements between unions and Schuller International, (the
"Company"). Plan participants have the option of directing the investment of
their contributions and related Company contributions into any one or a
combination of separate funds. From 1992 through March 31, 1994, IDS Trust, the
trustee of the Plan's assets, administered, managed and reported the Plan's
investment transactions. Beginning April 1, 1994, these responsibilities were
transferred to Fidelity Institutional Retirement Services Company ("Fidelity").
The Plan now offers the following new funds as investment options: the
Retirement Government Money Market Portfolio, Managed Income Portfolio II, Asset
Manager, Disciplined Equity Fund, Value Fund, Magellan Fund, OTC Portfolio and
the International Growth & Income Fund. Participants elected from these new
funds where their existing account balances were transferred and how future
contributions will be directed. Activity, such as loans, withdrawals, and fund
transfers, was suspended for the existing funds from March 28, 1994 through May
1994. Plan participants with accounts having market values totalling $4,085,563
were transferred into the Fidelity funds. The transfer of existing account
balances into the Fidelity funds was completed on April 4, 1994. Summarized
information regarding eligibility, vesting, contributions and benefits is
provided in the Summary Plan Document.
In June 1992, Riverwood International Corporation ("Riverwood") a
subsidiary of the Company, completed an initial public offering of 12.1 million
shares of common stock. In connection with this offering, units in a stock pool
("RVW Stock Pool") containing shares of this stock became available as a Plan
investment option. This pool was initially comprised of approximately 90% stock
and 10% cash, although this allocation could vary in the future. Plan
participants could allocate up to 25% of their Plan account balances to
investment in this pool. Additional purchase of Riverwood stock is not being
offered by the Plan at this time. Investment in the Riverwood stock pool is
being held in the RVW Stock Pool.
The loan account holds loans made to eligible participants out of their
vested account balances. Principal and interest payments are reinvested in the
participant's investment funds (with the exception of the RVW Stock Pool) in
accordance with the participant's investment election in effect at the time the
payments are made.
At December 31, 1994, there were a total of 1,250 employees participating
in the Plan. They participated in one or more of the funds as follows: 333 in
the Retirement Government Money Market Portfolio, 342 in the Managed Income
Portfolio II, 596 in the Asset Manager, 548 in the Disciplined Equity Fund, 326
in the Value Fund, 853 in the Magellan Fund, 231 in the OTC Portfolio, 372 in
the International Growth & Income Fund, and 14 in the RVW Stock Pool.
Additionally, 197 participants had loans outstanding through the loan account at
December 31, 1994.
2. TRANSFER TO SUCCESSOR TRUSTEE:
On January 5, 1993, 736 Plan participants with accounts having market
values totalling $3,752,424 were transferred into the newly created (effective
on January 1, 1993) Riverwood International Corporation Hourly Employees Thrift
Plan. Also included are the accounts of participants who transferred to
Riverwood during 1993.
9
<PAGE> 13
SCHULLER INTERNATIONAL HOURLY
EMPLOYEES THRIFT PLAN
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Investments in the Fidelity funds are stated at current values based upon
the following:
<TABLE>
<S> <C>
Retirement Government Money
Market Portfolio.......... original cost plus accrued interest.
Managed Income
Portfolio II.............. contract value (original cost plus accrued interest and
contributions less withdrawals.)
Asset ManagerTM............. quotations obtained directly from mutual fund company.
Disciplined Equity Fund..... quotations obtained directly from mutual fund company.
Value Fund.................. quotations obtained directly from mutual fund company.
Magellan(R) Fund............ quotations obtained directly from mutual fund company.
OTC Portfolio............... quotations obtained directly from mutual fund company.
International Growth &
Income Fund............... quotations obtained directly from mutual fund company.
RVW Stock Pool.............. stock quotations obtained from New York Stock Exchange.
</TABLE>
Transactions in the various funds are accounted for using the trade date.
Realized gains or losses from such transactions are determined on the basis of
average cost. Accrued income receivable on investments consists of dividends
receivable based on the ex-dividend date and interest income receivable at
December 31, 1994 and 1993.
Cash totalling $244 is included in cash and accrued income receivable at
December 31, 1993.
The Plan is exposed to credit risk in the event of nonperformance by the
counterparties to financial instruments but has no off-balance-sheet credit risk
of accounting loss. The Plan anticipates, however, that counterparties will be
able to fully satisfy their obligations under the contract. The Plan does not
require collateral or other security to support investments with credit risk.
The Plan presents in the statements of changes in net assets available for
benefits with fund information the net appreciation (depreciation) in the fair
value of its investments which consists of the realized gains or losses and the
unrealized appreciation (depreciation) on those investments, including
derivatives. See Note 5.
Certain prior year information has been reclassified to conform with the
current presentation format.
4. INVESTMENTS:
The number of units and market value per unit at December 31, were as
follows:
<TABLE>
<CAPTION>
1994 1993
-------- --------
<S> <C> <C>
U.S. GOVERNMENT SECURITIES FUND
Units........................................................ 641,575
Market value per unit........................................ $ 1.00
IDS STOCK FUND
Units........................................................ 26,381
Market value per unit........................................ $ 19.72
IDS NEW DIMENSIONS FUND
Units........................................................ 52,024
Market value per unit........................................ $ 14.34
</TABLE>
10
<PAGE> 14
SCHULLER INTERNATIONAL HOURLY
EMPLOYEES THRIFT PLAN
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
4. INVESTMENTS, CONTINUED:
<TABLE>
<CAPTION>
1994 1993
-------- --------
<S> <C> <C>
IDS BLUE CHIP ADVANTAGE FUND
Units........................................................ 47,790
Market value per unit........................................ $ 6.37
ASSET ALLOCATION FUND
Units........................................................ 29,862
Market value per unit........................................ $ 15.17
IDS TRUST INCOME FUND II
Units........................................................ 71,791
Market value per unit........................................ $ 13.78
RVW STOCK POOL
Units........................................................ 635 680
Market value per unit........................................ $ 11.21 $ 11.91
LOAN ACCOUNT
Remaining principal balance, at cost (approximates market)... $322,726 $141,651
FIDELITY RETIREMENT GOVERNMENT MONEY MARKET*
Units........................................................ 694,450
Market value per unit........................................ $ 1.00
FIDELITY MANAGED INCOME PORTFOLIO II*
Units........................................................ 630,064
Market value per unit........................................ $ 1.00
FIDELITY DISCIPLINED EQUITY FUND*
Units........................................................ 50,089
Market value per unit........................................ $ 17.94
FIDELITY ASSET MANAGER*
Units........................................................ 71,617
Market value per unit........................................ $ 13.83
FIDELITY VALUE FUND*
Units........................................................ 10,575
Market value per unit........................................ $ 40.81
FIDELITY MAGELLAN FUND*
Units........................................................ 26,356
Market value per unit........................................ $ 66.80
FIDELITY OTC PORTFOLIO
Units........................................................ 9,763
Market value per unit........................................ $ 23.27
FIDELITY INTERNATIONAL GROWTH & INCOME FUND*
Units........................................................ 22,393
Market value per unit........................................ $ 16.53
</TABLE>
- ---------------
* Represents at least 5% of net assets available for benefits at December 31,
1994.
11
<PAGE> 15
SCHULLER INTERNATIONAL HOURLY
EMPLOYEES THRIFT PLAN
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
5. DERIVATIVE FINANCIAL INSTRUMENTS:
At December 31, 1994, the Plan has only limited involvement with derivative
financial instruments and does not use them for trading purposes.
The fair value of derivatives is estimated as the amounts the Plan would
receive or pay to terminate the contracts at the reporting date, taking into
account the current unrealized gains or losses on open contracts. Market or
dealer quotes are available for many derivatives; otherwise, pricing or
valuation models are applied to current market information to estimate fair
value.
Investments in the Fidelity funds consist of various derivative financial
instruments such as futures, forward, swap or option contracts. At December 31,
1994, derivative transactions in these funds include domestic and international
equity futures, structured notes and foreign exchange forward contracts.
The objective of the funds' investments ("long positions") in domestic
equity futures is to remain fully invested as well as to maintain liquidity. The
funds' short positions in domestic equity futures represent the sale of
financial instruments which function as hedges against declines in equity
prices. Futures contracts are settled on a daily basis using funds set aside in
separate accounts.
Structured notes are created with terms that are linked to underlying
markets or changes in economic conditions. The structured notes are utilized
because they allow the funds to invest in certain investments that are otherwise
unavailable.
Foreign exchange forward contracts are entered into to manage foreign
currency exchange exposures and to hedge the funds' investments against currency
fluctuations.
An immaterial portion of the total assets of the Asset Manager Fund, the
Disciplined Equity Fund and the Value Fund, has been invested in derivative
financial instruments. The International Growth & Income Fund, however, has
approximately 40 percent of its total assets invested in derivatives, of which
approximately 90 percent of those derivative instruments represent foreign
exchange forward contracts. Because the International Growth & Income Fund
invests primarily in international markets, it is reasonable to conclude that
its foreign currency exposure is normally higher than for most domestic funds.
6. CONTRIBUTIONS, ELIGIBILITY AND VESTING:
Pre-tax Contributions -- From January 1, 1994 -- March 31, 1994, an
eligible employee could contribute to the Plan through a reduction in wages on a
pre-tax basis (a "401(k)" Plan), depending on each participating location's
collective bargaining agreements, from 1% to 6% of wages (defined as regular
fixed compensation plus commissions, bonuses, overtime pay and profit sharing
distributions).
As of April 1, 1994, the Plan provided for two pre-tax contribution
formulas, to be included in each participating location's collective bargaining
agreement:
Eligible employees at participating locations could continue to
contribute to the Plan, through a reduction in wages on a pre-tax basis,
from 1% to 6% of wages (defined as regular fixed compensation plus
commissions, bonuses, overtime pay and profit sharing distributions).
OR
Eligible employees at participating locations could contribute to the
Plan, through a reduction in wages on a pre-tax basis, from 1% to 9% (8%
for highly compensated employees) of wages (defined as regular fixed
compensation plus commissions, bonuses, overtime pay and profit sharing
distributions).
12
<PAGE> 16
SCHULLER INTERNATIONAL HOURLY
EMPLOYEES THRIFT PLAN
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
6. CONTRIBUTIONS, ELIGIBILITY AND VESTING, CONTINUED:
After-tax Contributions -- From January 1, 1994 -- March 31, 1994 employees
could elect to contribute 1% to 10% (in increments of 1%) of wages on an
after-tax basis regardless of the percentage of pre-tax contributions.
As of April 1, 1994, the Plan provided for two after tax contribution
formulas to be included in each participating location's collective bargaining
agreement:
If the agreement set forth the 1% -- 6% pre-tax contribution, eligible
employees could continue to contribute to the Plan on an after-tax basis,
from 1% to 10% of wages, regardless of whether or not the employee elected
to make pre-tax contributions.
OR
If the agreement set for the 1% -- 9% (8% for highly compensated
employees) pre-tax contribution, eligible employees could contribute to the
Plan, on an after-tax basis, from 1% to 7% of wages, regardless of whether
or not the employee elected to make pre-tax contributions.
Company Contributions -- The Company contribution is based upon fixed
matches of the first 6% of pre-tax contributions, also pursuant to collective
bargaining agreements. Voluntary after-tax contributions and rollover
contributions are not matched by the Company. The Company's annual contribution
made on behalf of any employee is subject to certain maximums as specified in
the Plan and regulated by the Internal Revenue Service.
Eligibility -- Full-time union hourly employees may become participants of
the Plan upon completing one year of service or immediately upon reemployment if
previously an eligible employee. If the employee is not a regular full-time
employee, such employee becomes eligible to participate after completing at
least 1,000 hours and one year of service.
Vesting -- Employee contributions and earnings thereon vest to the
participant immediately. Company contributions and the earnings thereon vest to
the participant with the earlier of five years service or three years
participation in the Plan.
7. WITHDRAWALS AND FORFEITURES AND LOANS
Rollover contributions which have been in the Plan at least 24 months and
all vested amounts (except those relating to participant pre-tax contributions
and earnings thereon) may be withdrawn by the participant at any time. Employee
pre-tax contributions and earnings thereon may not be withdrawn until the
participant attains age 59 1/2 or furnishes satisfactory proof of financial
hardship.
If a participant's employment is terminated for reasons other than death,
disability or retirement, the participant forfeits any unvested Company
contributions and earnings.
Forfeitures serve to reduce future contributions of the Company. A
participant who is terminated and subsequently rehired by the Company within
five years has the option of repaying to the Plan, within two years of the
reemployment date, cash in one lump sum equal to the full amount received from
the Plan at termination. If such repayment is made, the Company will restore to
the participant's account the amounts previously forfeited.
A participant who retires or becomes disabled can elect to defer the
distribution of funds credited to the participant in the Plan until April of the
year following the year in which the participant attains age 70 1/2 or, in the
event of death, the beneficiary can elect to defer distribution for a period of
60 months from date of death.
13
<PAGE> 17
SCHULLER INTERNATIONAL HOURLY
EMPLOYEES THRIFT PLAN
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
7. WITHDRAWALS AND FORFEITURES AND LOANS, CONTINUED:
Subsequent to withdrawal, Company contributions are suspended for the
greater of three months or the time period during which the employee does not
make contributions. Hardship withdrawals are subject to one year suspension of
both employee contributions. Suspension does not occur if the withdrawal is
limited to after-tax contributions and the related earnings thereon.
The Plan's loan provisions allow a participant to borrow up to specified
limits of the value of their vested account balances; however, in no event
within the previous 12 month period can the participant's aggregate loan balance
exceed $50,000. All loans are collateralized by the participant's account
balances and bear interest at one percent over the prime rate.
8. TAX STATUS:
The Plan is designed to constitute a qualified trust under Section 401(a)
of the Internal Revenue Code and is therefore considered to be exempt from
federal income tax under provisions of Section 501(a). An application was filed
with the Internal Revenue Service on December 28, 1992 for a determination as to
whether the Plan meets the qualification requirements of Section 401(a) of the
Internal Revenue Code of 1986, as amended, with respect to the Plan's amendments
and restatements resulting from the Plan's transfers to Riverwood's trustee (see
Note 2). On August 24, 1993, the Company received a favorable tax qualification
determination letter, retroactive to January 1, 1989, from the Internal Revenue
Service. Participants in the Plan will not be taxed on pre-tax contributions,
rollover contributions, Company contributions to the Plan on their behalf or on
earnings credited to their accounts until such contributions and earnings are
distributed or otherwise made available to them.
9. TERMINATION OF THE PLAN:
It is the intent of the Company to continue the Plan; however, in the event
that the Plan is terminated by the Company, accounts would automatically be
fully vested. The assets of the Plan would be distributed to the participants
based on their account balances. In addition, any previously forfeited amounts
which had not been applied to reduce Company contributions would be credited
ratably to the accounts of the participants remaining in the Plan at the time of
such termination.
10. ADMINISTRATIVE EXPENSES PAID BY COMPANY:
The Company paid approximately $33,000, $22,000, and $26,000 in 1994, 1993,
and 1992, respectively, of administrative expenses to the Plan's trustee on
behalf of the Plan, which are not included in the financial statements.
14
