<PAGE>
UNITED STATES
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 (FEE REQUIRED)
For the fiscal year ended. . . . . . . . . .December 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from ________________ to ________________
Commission file number ____________________________________________
A. FMC CORPORATION 401 (k) PLAN FOR EMPLOYEES' COVERED BY A
COLLECTIVE BARGAINING AGREEMENT
(Full title of the Plan)
B. FMC CORPORATION
200 East Randolph Drive, Chicago, Illinois 60601
(Name and Address of Issuer)
SIGNATURES
----------
The Plan. Pursuant to the requirements of the Securities Exchange Act of
1934, FMC Corporation, as Plan Administrator, has duly caused this annual
report to be signed on its behalf by the undersigned duly authorized.
FMC CORPORATION 401 (k) PLAN FOR
EMPLOYEES COVERED BY A COLLECTIVE
BARGAINING AGREEMENT
By /s/ Steven H. Shapiro
-------------------------
Associate General Counsel and
Assistant Secretary
Dated: September 1, 1998
<PAGE>
FMC CORPORATION 401(k) PLAN
FOR EMPLOYEES COVERED BY A
COLLECTIVE BARGAINING AGREEMENT
<TABLE>
<CAPTION>
TABLE OF CONTENTS
===================================================================================
Page(s)
-------
<S> <C> <C>
Independent Auditors' Report.................................... 1
Statement of Net Assets Available for Plan Benefits
with Fund Information--December 31, 1997...................... 2
Statement of Net Assets Available for Plan Benefits
with Fund Information--December 31, 1996...................... 3
Statement of Changes in Net Assets Available for Plan Benefits
with Fund Information--year ended December 31, 1997........... 4-5
Statement of Changes in Net Assets Available for Plan Benefits
with Fund Information--year ended December 31, 1996........... 6
Notes to Financial Statements................................... 7-12
Schedule
--------
Item 27a--Schedule of Assets Held for Investment Purposes....... 1 13
Item 27d--Schedule of 5% Reportable Transactions................ 2 14
</TABLE>
<PAGE>
Independent Auditors' Report
----------------------------
The Employee Welfare Benefits Plan
Committee of FMC Corporation:
We have audited the accompanying statements of net assets available for plan
benefits of FMC Corporation 401(k) Plan for Employees Covered by a Collective
Bargaining Agreement (the Plan) as of December 31, 1997 and 1996, and the
related statements of changes in net assets available for plan benefits 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 plan benefits of the Plan as
of December 31, 1997 and 1996, and the changes in net assets available for plan
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 schedules of assets
held for investment purposes and reportable 5% transactions 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 plan benefits and the statements of
changes in net assets available for plan benefits is presented for purposes of
additional analysis rather than to present the net assets available for plan
benefits and the changes in net assets available for plan benefits of each fund.
The supplemental schedules and Fund information have been subjected to the
auditing procedures applied in the audits of the basic financial statements and,
in our opinion, are fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
The schedule of assets held for investment purposes that accompanies the Plan's
financial statements does not disclose the historical cost of certain plan
assets held by the Plan trustee. Disclosure of this information is required by
the Department of Labor's Rules and Regulations for Reporting and Disclosure
under the Employee Retirement Income Security Act of 1974.
/s/ KPMG Peat Marwick LLP
Chicago, Illinois
June 26, 1998
<PAGE>
FMC CORPORATION 401(k) PLAN
FOR EMPLOYEES COVERED BY A
COLLECTIVE BARGAINING AGREEMENT
Statement of Net Assets Available for Plan Benefits with Fund Information
December 31, 1997
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
FMC Stable Mutual Fidelity Fidelity Low-Priced
Stock Value Clipper Qualified(Z) Sequoia Puritan Blue Chip Stock
Fund Fund Fund Fund Fund Fund Growth Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investments at fair value $2,099,645 7,467,394 237,109 63,515 417,409 498,189 6,741,818 576,756
Participants' loans receivable - - - - - - - -
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets available for benefits $2,099,645 7,467,394 237,109 63,515 417,409 498,189 6,741,818 576,756
=================================================================================================================================
- ------------------------------------------------------------------------------------------------------
Retirement
Diversified Government U. S.
International Money Market Equity Loan
Fund Fund Index Pool Fund Total
- ------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C>
Investments at fair value 236,654 668,225 414,516 - $19,421,230
Participants' loans receivable - - - 855,963 855,963
- ------------------------------------------------------------------------------------------------------
Net assets available for benefits 236,654 668,225 414,516 855,963 $20,277,193
======================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
FMC CORPORATION 401(k) PLAN
FOR EMPLOYEES COVERED BY A
COLLECTIVE BARGAINING AGREEMENT
Statement of Net Assets Available for Plan Benefits with Fund Information
December 31, 1996
<TABLE>
<CAPTION>
====================================================================================================================================
FMC Guaranteed First Money Active Stock International
Stock Interest Essex Market Balanced Index Stock
Fund Fund Fund Account Fund Z Fund Fund Z
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Cash and cash equivalents $ -- -- -- -- -- -- --
Investments at fair value 2,394,428 19,385,044 5,389,479 650,922 82,376 5,965,387 718,239
- ------------------------------------------------------------------------------------------------------------------------------------
Total investments 2,394,428 19,385,044 5,389,479 650,922 82,376 5,965,387 718,239
Participants' loans receivable -- -- -- -- -- -- --
Contribution receivable 5,008 34,940 20,098 2,656 175 8,883 2,572
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets available for benefits $ 2,399,436 19,419,984 5,409,577 653,578 82,551 5,974,270 720,811
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
Allocation Jennison Money Government
Balanced Growth Market Income Loan
Fund Z Fund Z Assets Z Fund Z Fund Total
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Cash and cash equivalents -- -- 257,923 -- -- $ 257,923
Investments at fair value 119,768 1,203,823 -- 69,729 -- 35,979,195
- ------------------------------------------------------------------------------------------------------------------------------------
Total investments 119,768 1,203,823 257,923 69,729 -- 36,237,118
Participants' loans receivable -- -- -- -- 791,867 791,867
Contribution receivable 477 4,028 448 115 -- 79,400
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets available for benefits 120,245 1,207,851 258,371 69,844 791,867 $ 37,108,385
====================================================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
FMC CORPORATION 401(k) PLAN
FOR EMPLOYEES COVERED BY A
COLLECTIVE BARGAINING AGREEMENT
Statement of Changes in Net Assets Available for Plan Benefits with Fund
Information
<TABLE>
<CAPTION>
Year ended December 31, 1997
=====================================================================================================================
FMC Stable Mutual Fidelity
Stock Value Clipper Qualified(Z) Sequoia Puritan
Fund Fund Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Net appreciation (depreciation)
in fair value of investments $ 138,684 -- 1,118 15,290 80,447 10,016
Interest and dividend income 4,217 581,659 30,333 6,791 3,527 45,385
Contributions 290,534 950,922 72,220 39,831 87,412 106,205
Loan repayments 18,124 54,157 1,566 858 3,084 3,960
- ---------------------------------------------------------------------------------------------------------------------
Total additions 451,559 1,586,738 105,237 62,770 174,470 165,566
- ---------------------------------------------------------------------------------------------------------------------
Deductions:
Distributions to participants 53,355 576,361 3,200 3,142 3,408 15,675
Loans issued 96,740 246,566 2,018 -- 3,302 14,938
Administrative expenses 67 -- 42 -- -- 25
- ---------------------------------------------------------------------------------------------------------------------
Total deductions 150,162 822,927 5,260 3,142 6,710 30,638
- ---------------------------------------------------------------------------------------------------------------------
Net additions prior to interfund
transfers and other changes 301,397 763,811 99,977 59,628 167,760 134,928
Interfund transfers (18,064) (2,754,075) 347,375 107,214 744,923 445,676
Net transferred in (out) (Note 5) (583,124) 9,457,658 (210,243) (103,327) (495,274) (82,415)
- ---------------------------------------------------------------------------------------------------------------------
Net additions (deductions) (299,791) 7,467,394 237,109 63,515 417,409 498,189
Net assets available for benefits
at beginning of year 2,399,436 -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------
Net assets available for benefits
at end of year $ 2,099,645 7,467,394 237,109 63,515 417,409 498,189
=====================================================================================================================
</TABLE>
<TABLE>
Retirement U.S.
Fidelity Low-Priced Diversified Government Equity
Blue Chip Stock International Money Market Index Pool Loan
Growth Fund Fund Fund Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Net appreciation (depreciation)
in fair value of investments 660,378 23,004 77,514 -- 1,189,243 --
Interest and dividend income 396,408 46,541 8,667 26,861 1,802 --
Contributions 833,878 60,950 93,055 155,113 242,250 --
Loan repayments 40,066 484 1,957 2,851 9,818 (216,314)
- -----------------------------------------------------------------------------------------------------------------------------------
Total additions 1,930,730 130,979 181,193 184,825 1,443,113 (216,314)
- -----------------------------------------------------------------------------------------------------------------------------------
Deductions:
Distributions to participants 121,883 -- 9,532 15,430 138,507 2,006
Loans issued 214,249 2,809 16,836 12,730 72,283 (830,290)
Administrative expenses 75 27 -- 8 33 --
- -----------------------------------------------------------------------------------------------------------------------------------
Total deductions 336,207 2,836 26,368 28,168 210,823 (828,284)
- -----------------------------------------------------------------------------------------------------------------------------------
Net additions prior to interfund
transfers and other changes 1,594,523 128,143 154,825 156,657 1,232,290 611,970
Interfund transfers 137,998 787,476 145,104 (258,228) 304,187 --
Net transferred in (out) (Note 5) 5,009,297 (338,863) (63,275) 769,796 (1,121,961) (547,874)
- -----------------------------------------------------------------------------------------------------------------------------------
Net additions (deductions) 6,741,818 576,756 236,654 668,225 414,516 64,096
Net assets available for benefits
at beginning of year -- -- -- -- -- 791,867
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets available for benefits
at end of year 6,741,818 576,756 236,654 668,225 414,516 855,963
===================================================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
continued
4
<PAGE>
FMC CORPORATION 401(k) PLAN
FOR EMPLOYEES COVERED BY A
COLLECTIVE BARGAINING AGREEMENT
<TABLE>
<CAPTION>
Statement of Changes in Net Assets Available for Benefits with Fund Information (continued)
Year ended December 31, 1997
- -----------------------------------------------------------------------------------------------------------------------------------
Harsco Guaranteed First Money Active Stock International
Stock Interest Essex Market Balanced Index Stock
Fund Fund Fund Account Fund Z Fund Fund Z
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions:
Net appreciation (depreciation)
in fair value of investments $ 129 -- 489,189 13,173 4,297 896,466 69,431
Interest and dividend income -- 530,432 3,076 607 71 1,936 229
Contributions -- 745,215 410,633 54,013 7,056 174,720 55,053
Loan repayments -- 55,776 7,690 3,040 140 6,985 694
- ----------------------------------------------------------------------------------------------------------------------------------
Total additions 129 1,331,423 910,588 70,833 11,564 1,080,107 125,407
- ----------------------------------------------------------------------------------------------------------------------------------
Deductions:
Distributions to participants -- 167,511 32,939 13,413 951 13,400 --
Loans issued -- 99,316 33,197 3,215 1,417 4,180 154
Administrative expenses -- 2,393 569 104 -- 30 --
- ----------------------------------------------------------------------------------------------------------------------------------
Total deductions -- 269,220 66,705 16,732 2,368 17,610 154
- ----------------------------------------------------------------------------------------------------------------------------------
Net additions prior to interfund
transfers and other changes 129 1,062,203 843,883 54,101 9,196 1,062,497 125,253
Interfund transfers -- (57,299) 59,805 (11,488) 1,206 (21,482) (8,889)
Net transferred in (out) (Note 5) (129) (20,424,888) (6,313,265) (696,191) (92,953) (7,015,285) (837,175)
- ----------------------------------------------------------------------------------------------------------------------------------
Net additions (deductions) -- (19,419,984) (5,409,577) (653,578) (82,551) (5,974,270) (720,811)
Net assets available for benefits at
beginning of year -- 19,419,984 5,409,577 653,578 82,551 5,974,270 720,811
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets available for benefits at
end of year $ -- -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
Allocation Jennison Money Government
Balanced Growth Market Income
Fund Z Fund Z Assets Z Fund Z Total
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions:
Net appreciation (depreciation)
in fair value of investments 4,549 168,323 -- (951) $ 3,840,300
Interest and dividend income 1,172 3,462 4,950 2,029 1,700,155
Contributions 13,616 84,800 16,369 4,118 4,947,963
Loan repayments 347 4,689 28 -- --
- ------------------------------------------------------------------------------------------------------------------
Total additions 19,684 261,274 21,347 5,196 10,038,418
- ------------------------------------------------------------------------------------------------------------------
Deductions:
Distributions to participants 924 -- -- -- 1,171,637
Loans issued 865 2,499 2,976 -- --
Administrative expenses -- -- 75 -- 3,448
- ------------------------------------------------------------------------------------------------------------------
Total deductions 1,789 2,499 3,051 -- 1,171,085
- ------------------------------------------------------------------------------------------------------------------
Net additions prior to interfund
transfers and other changes 17,895 258,775 18,296 5,196 8,863,333
Interfund transfers (1,657) (20,022) 70,240 -- --
Net transferred in (out) (Note 5) (136,483) (1,446,604) (346,907) (75,040) (25,694,525)
- ------------------------------------------------------------------------------------------------------------------
Net additions (deductions) (120,245) (1,207,851) (258,371) (69,844) (16,831,192)
Net assets available for benefits at
beginning of year 120,245 1,207,851 258,371 69,844 37,108,385
- ------------------------------------------------------------------------------------------------------------------
Net assets available for benefits at
end of year -- -- -- -- $ 20,277,193
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
FMC CORPORATION 401(k) PLAN
FOR EMPLOYEES COVERED BY A
COLLECTIVE BARGAINING AGREEMENT
<TABLE>
<CAPTION>
Statement of Changes in Net Assets Available for Plan Benefits with Fund Information
Year ended December 31, 1996
FMC Guaranteed First Money Money Active Stock
Stock Interest Essex Market Market Income Balanced Balanced Index
Fund Fund Fund Account Fund Fund Fund Fund Z Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Additions:
Net appreciation (depreciation) in
fair value of investments $ 82,413 -- 1,039,553 29,313 -- (2,900) 3,481 5,769 989,898
Interest and dividend income -- 1,170,461 -- -- 10,488 2,557 2,177 2,373 88,741
Contributions 280,242 2,093,874 921,743 140,380 17,742 7,757 17,421 17,883 451,717
Loan repayments 6,199 165,410 11,971 2,066 41 -- 9,341 72 31,329
- ------------------------------------------------------------------------------------------------------------------------------------
Total additions 368,854 3,429,745 1,973,267 171,759 28,271 7,414 32,420 26,097 1,561,685
- ------------------------------------------------------------------------------------------------------------------------------------
Deductions:
Distributions to participants 85,337 1,018,485 76,449 -- 10,411 -- -- -- 325,411
Loans issued -- -- -- -- -- -- -- -- --
Administrative expenses 167 41,234 2,814 979 -- -- -- 106 3,003
- ------------------------------------------------------------------------------------------------------------------------------------
Total deductions 85,504 1,059,719 79,263 979 10,411 -- -- 106 328,414
- ------------------------------------------------------------------------------------------------------------------------------------
Net additions (deductions) prior to
interfund transfers 283,350 2,370,026 1,894,004 170,780 17,860 7,414 32,420 25,991 1,233,271
Interfund transfers (73,632) (383,928) 35,662 (87,987) (415,919) (64,139) (102,645) (12,085 39,552
- ------------------------------------------------------------------------------------------------------------------------------------
Net additions (deductions) 209,718 1,986,098 1,929,666 82,793 (398,059) (56,725) (70,225) 13,906 1,272,823
Net assets available for benefits at
beginning of year 2,189,718 17,433,886 3,479,911 570,785 398,059 56,725 70,225 68,645 4,701,447
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets available for benefits at
end of year $2,399,436 19,419,984 5,409,577 653,578 -- -- -- 82,551 5,974,270
- ------------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Interna-
Growth tional Allocation Jennison Money Government
Stock Stock Balanced Growth Market Income Loan
Fund Fund Z Fund Z Fund Z Assets Z Fund Z Fund Total
- ----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C>
Additions:
Net appreciation (depreciation) in
fair value of investments 112,187 85,659 5,392 50,311 -- 1,243 -- $ 2,402,319
Interest and dividend income -- 9,597 836 -- 3,472 1,273 -- 1,291,975
Contributions 139,674 134,615 7,571 51,807 5,553 3,431 -- 4,291,410
Loan repayments 29,492 17,535 257 5,691 42 -- (222,454) 56,992
- ----------------------------------------------------------------------------------------------------------------------------------
Total additions 281,353 247,406 14,056 107,809 9,067 5,947 (222,454) 8,042,696
- ----------------------------------------------------------------------------------------------------------------------------------
Deductions:
Distributions to participants 39,794 6,697 -- 203 4,261 168 -- 1,567,216
Loans issued -- -- -- -- -- -- 188,206 188,206
Administrative expenses 7 169 129 135 191 75 -- 49,009
- ----------------------------------------------------------------------------------------------------------------------------------
Total deductions 39,801 6,866 129 338 4,452 243 188,206 1,804,431
- ----------------------------------------------------------------------------------------------------------------------------------
Net additions (deductions) prior to
interfund transfers 241,552 240,540 13,927 107,471 4,615 5,704 (410,660) 6,238,265
Interfund transfers (1,004,914) 43,520 106,318 1,100,380 253,756 64,140 501,921 --
- ----------------------------------------------------------------------------------------------------------------------------------
Net additions (deductions) (763,362) 284,060 120,245 1,207,851 258,371 69,844 91,261 6,238,265
Net assets available for benefits at
beginning of year 763,362 436,751 -- -- -- -- 700,606 30,870,120
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets available for benefits at
end of year -- 720,811 120,245 1,207,851 258,371 69,844 791,867 $37,108,385
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
FMC CORPORATION 401(k) PLAN
FOR EMPLOYEES COVERED BY A
COLLECTIVE BARGAINING AGREEMENT
Notes to Financial Statements
December 31, 1997 and 1996
================================================================================
(1) Summary of the Plan
The following summary of the FMC Corporation 401(k) Plan for Employees
Covered by a Collective Bargaining Agreement (the Plan) is provided for
general information purposes only. Participants should refer to the Plan
document for a more complete description of the Plan's provisions.
(a) General
The Plan was established on April 1, 1987 to provide retirement and certain
other benefits for eligible hourly employees of FMC Corporation (the
Company). The Plan was amended and restated as of January 1, 1989 to
reflect changes in the Internal Revenue Code. The Plan is a qualified
salary reduction plan under Section 401(k) of the Internal Revenue Code.
The Plan covers employees covered by a collective bargaining agreement at
fourteen of the Company's locations. Employee eligibility in the Plan
varies by location, as set forth in the Plan document. The Plan is a
defined contribution plan and is funded by employees' contributions. The
Plan is subject to the provisions of the Employee Retirement Income
Security Act of 1974 (ERISA). The Plan is administered by the FMC Employee
Welfare Benefits Plan Committee.
(b) Trust Agreement
Effective June 1, 1997, the Company and Fidelity Management Trust Company
(the Trustee) established a trust (the Trust) for investment purposes as
part of the Plan. The Trust replaced a predecessor trust established with
Prudential Defined Contributions Services (Prudential). At the same time,
the Trustee also became the Plan's recordkeeper.
(c) Contributions
Participants may currently elect to have their compensation reduced by an
amount between 1% and 15% of the participant's compensation in the
aggregate, subject to adjustments to reflect changes in the cost of living.
The aggregate amount of such reductions is contributed to the Plan trust on
a pretax basis, subject to Internal Revenue Service (IRS) limitations.
Provisions of the Plan agreement regarding contributions are the same for
all locations covered by the Plan. Participant contributions are
nonforfeitable.
(d) Investment Options
Prior to June 1, 1997
---------------------
From January 1, 1996 through May 31, 1997, upon enrollment in the Plan, a
participant could direct his or her contribution in 1% increments in any of
the following investment options:
1) FMC Stock Fund -- Funds are invested in common stock of FMC
Corporation.
2) Guaranteed Interest Fund -- Funds were invested in guaranteed interest
contracts with the Prudential Insurance Company of America. From
January 1, 1997 through May 31, 1997, guaranteed effective annual yield
was approximately 6.4%.
3) First Essex Fund -- Funds were invested in common stocks of major, well
established companies listed on the New York Stock Exchange.
7
<PAGE>
FMC CORPORATION 401(k) PLAN
FOR EMPLOYEES COVERED BY A
COLLECTIVE BARGAINING AGREEMENT
Notes to Financial Statement
December 31, 1997 and 1996
================================================================================
4) Money Market Account -- Funds were invested in high quality money
market instruments maturing in a short period of time (less than 12
months).
5) Active Balanced Fund Z -- Funds were invested in a combination of
stocks, bonds, and lower risk money market instruments, such as short-
term U.S. Treasury securities.
6) Stock Index Fund -- The investment objective was to provide investment
results that correspond to the price and yield performance of Standard
& Poor's 500 Composite Stock Price Index.
7) International Stock Fund Z -- Funds were invested in a diversified
portfolio of securities which consist of equity securities of foreign
issuers.
8) Money Market Fund (through September 19, 1996) -- Funds were invested
in a Prudential institutional fund which sought to achieve a high level
of income, preservation of principal, and maintenance of liquidity.
9) Income Fund (through September 19, 1996) -- Funds were invested
primarily in U.S. Government securities, including U.S. Treasury bills,
notes, bonds, and other debt securities issued by the U.S. Treasury.
10) Balanced Fund (through September 20, 1996) -- Funds were invested in a
mix of equity securities, fixed income securities, and high quality
money market instruments.
11) Growth Stock Fund (through September 20, 1996) -- Funds were invested
primarily in securities of established companies with above average
growth prospects.
Effective September 21, 1996, the Money Market Fund, the Income Fund, the
Balanced Fund, and the Growth Stock fund were deleted from the investment
options. As a result, the assets in those funds were transferred to the
remaining funds on the basis of comparable investment options in terms of
risk and return. In addition, in September 1996, the following new funds
were added in as the investment options:
1) Allocation Balanced Fund Z -- Funds were invested in a diversified
portfolio of equity securities, debt obligations, and money market
instruments.
2) Jennison Growth Fund Z -- Funds were invested primarily in equity
securities (common stock, preferred stock, and securities convertible
into common stock) of established companies with above average growth
prospects.
3) Money Market Assets Z -- Funds were invested in high quality money
market instruments with maturities of 13 months or less.
4) Government Income Fund Z -- Funds were invested primarily in U.S.
Government securities, including U.S. Treasury bills, notes, bonds, and
other debt securities issued by the U.S. Treasury.
8
<PAGE>
FMC CORPORATION 401(k) PLAN
FOR EMPLOYEES COVERED BY A
COLLECTIVE BARGAINING AGREEMENT
Notes to Financial Statement
December 31, 1997 and 1996
================================================================================
After May 31, 1997
------------------
Upon enrollment in the Plan, a participant may direct his or her
contribution in 1% increments in any of the following investment options:
1) FMC Stock Fund -- Funds are invested in common stock of FMC
Corporation.
2) Stable Value Fund -- Funds are invested in investments contracts
offered by insurance companies and other approved financial
institutions. From June 1, 1997 through December 31, 1997, the
guaranteed effective annual yield was approximately 7.2%.
3) Clipper Fund -- Funds are invested in undervalued common stocks and in
long-term bonds.
4) Mutual Qualified (Z) Fund -- Funds are invested primarily in common and
preferred stocks which are considered undervalued by the fund manager.
5) Sequoia Fund -- Fund investments are concentrated in a relatively small
number of mostly U. S. headquartered companies with long-term growth
potential.
6) Fidelity Puritan Fund -- Funds are invested in high-yielding U.S. and
foreign securities, including those in emerging markets.
7) Fidelity Blue Chip Growth Fund -- Funds are invested primarily in
common stocks of well-known and established companies.
8) Low-Priced Stock Fund -- Funds are heavily invested in undervalued
stocks or out-of-favor stocks.
9) Diversified International Fund -- Funds are invested primarily in
stocks of companies located outside the U. S. that are included in the
Morgan Stanley EAFE Index.
10) Retirement Government Money Market Fund -- Funds are invested in short-
term obligations of the U. S. Government or it agencies.
11) U. S. Equity Index Pool -- Funds are invested primarily in common
stocks of the 500 companies that make up the S&P 500.
Upon the change in the trusteeship from Prudential to the Fidelity
Management Trust Company, the assets of the Plan, except for the assets
held in the FMC Common Stock Fund, were transferred to the new funds
offered by Fidelity on the basis of comparable investment options in terms
of risk and return.
The participants may change their investment options and move their account
balances within the funds as frequently as they choose except with respect
to the FMC Stock Fund, where the value of account can be moved when a
participant reaches age 55.
9
<PAGE>
FMC CORPORATION 401(k) PLAN
FOR EMPLOYEES COVERED BY A
COLLECTIVE BARGAINING AGREEMENT
Notes to Financial Statement
December 31, 1997 and 1996
================================================================================
(e) Participant Accounts
Each participant's account is credited with the participant's contribution
and Plan earnings and charged with an allocation of administrative
expenses. The benefit to which a participant is entitled is the benefit
that can be provided from the participant's vested account. At December 31,
1997, 2,434 current and former employees participated in the Plan.
(f) Eligibility and Vesting
Depending on the collective bargaining group, employees are eligible to
participate in the plan either immediately upon hire or after a waiting
period of up to one year. Participants are immediately vested in their
elective contributions plus actual earnings thereon.
(g) Payment of Benefits
On termination of service or attainment of age 59 1/2, any participant may
elect to immediately receive a lump-sum distribution equal to the vested
interest in his or her account. Participants age 55 or older or whose
accounts are valued at not less than $3,500 may, upon termination, elect to
defer their lump-sum distribution or receive annual installments over a
ten-year period.
(h) Expenses
The compensation and expenses of the Trustee are paid by the Company. All
other expenses of the Plan may be paid by the Trustee out of the assets of
the Plan and constitute a charge upon the respective investment funds or
upon the individual participants' accounts as provided in the Plan.
(i) Withdrawals and Participants Loans
Certain locations covered under the Plan allow participants to make
hardship cash withdrawals (subject to income taxation and IRS penalties) of
some or all of their vested account balances. Additionally, at certain
locations, eligible participants may also receive money from the Plan in
the form of loans. The minimum that may be borrowed from $1,000 to the
maximum is the lesser of $50,000, as adjusted, or 50% of the participant's
vested account balance. Loans must be repaid within 60 months with interest
at the prevailing market rates or some other reasonable rate as determined
by the Plan's Trustee. Participant loans outstanding as of December 31,
1997 and 1996 were $855,963 and $791,867, respectively, and they are
reported under the Loan Fund.
(j) Plan Termination
Although it has not expressed any intent to do so, the Company has the
right under the Plan to terminate the Plan subject to the provisions of the
Plan and ERISA.
(2) Summary of Significant Accounting Policies
The following are the significant accounting policies followed by the Plan:
(a) Basis of Accounting
The Plan's financial statements are prepared on the accrual basis of
accounting.
10
<PAGE>
FMC CORPORATION 401(k) PLAN
FOR EMPLOYEES COVERED BY A
COLLECTIVE BARGAINING AGREEMENT
Notes to Financial Statement
December 31, 1997 and 1996
================================================================================
(b) Investments
Security transactions are recorded in the financial statements on a
settlement-date basis, which does not differ materially from a trade-date
basis.
(c) Valuation of Investments
Quoted or estimated market prices are used to value investments except for
certain contracts with banks and insurance companies which guarantee
repayment of principal with interest at a fixed or fixed minimum rate for a
specified period of time. These contracts are valued at contract value
which approximates fair value.
(d) Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires the plan administrator 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 changes in net
assets and liabilities during the reporting period. Actual results could
differ from these estimates, but the plan administrator does not believe
such differences will materially affect the Plan's net assets available for
benefits or changes in net assets available for benefits.
(3) Investments
Investments at fair value which represent 5% or more of the Plan's net
assets available for benefits are separately identified below:
<TABLE>
<CAPTION>
==============================================================================
December 31,
------------------------------
1997 1996
- ------------------------------------------------------------------------------
<S> <C> <C>
FMC Stock Fund $2,099,645 2,394,428
Stable Value Fund 7,467,394 -
Blue Chip Stock Fund 6,741,818 -
First Essex Fund - 5,389,479
Guaranteed Interest Fund - 19,385,044
Stock Index Fund - 5,965,387
==============================================================================
</TABLE>
11
<PAGE>
FMC CORPORATION 401(k) PLAN
FOR EMPLOYEES COVERED BY A
COLLECTIVE BARGAINING AGREEMENT
Notes to Financial Statements
December 31, 1997 and 1996
<TABLE>
<CAPTION>
=====================================================================================
During 1997 and 1996, the Plan's investments (including investments bought,
sold, and held during the year) appreciated (depreciated) as follows:
=====================================================================================
Year ended December 31,
-------------------------------
1997 1996
- -------------------------------------------------------------------------------------
<S> <C> <C>
FMC Stock Fund $ 138,684 82,413
Harsco Stock Fund 129 -
First Essex Fund 489,189 1,039,553
Money Market Account 13,173 29,313
Income Fund - (2,900)
Balanced Fund - 3,481
Active Balanced Fund Z 4,297 5,769
Stock Index Fund 896,466 989,898
Growth Stock Fund - 112,187
International Stock Fund Z 69,431 85,659
Allocation Balanced Fund Z 4,549 5,392
Jennison Growth Fund Z 168,323 50,311
Government Income Fund Z (951) 1,243
Clipper Fund 1,118 -
Mutual Qualified (Z) Fund 15,290 -
Sequoia Fund 80,447 -
Fidelity Puritan Fund 10,016 -
Fidelity Blue Chip Stock Fund 660,378 -
Low-Priced Stock Fund 23,004 -
Diversified International Fund 77,514 -
U. S. Equity Index Pool Fund 1,189,243 -
- -------------------------------------------------------------------------------------
$3,840,300 2,402,319
=====================================================================================
</TABLE>
(4) Federal Income Tax Status
The Company has not submitted the Plan to the IRS for consideration of the
Plan's tax status. However, the plan administrator and the Plan's counsel
intend to apply for a determination letter with the IRS and believe the
Plan is designed and is currently being operated in compliance with the
applicable requirements of the Internal Revenue Code.
(5) Plan Merger and Asset Transfers
On June 1, 1997 the Plan received $227,303 from the Moorco International
Inc. Incentive Savings Plan for union hourly employees as a result of the
plans' merger. On October 7, 1997, the Plan transferred $23,780,184 to the
United Defense, L. P. York Union Employees' Thrift and Stock Purchase Plan
due to the sale of FMC Corporation's defense business to the Carlyle Group.
In addition, the Plan transferred $2,141,644 to alternative funding
agencies due to employee transfers and turnover, and to the FMC Salaried
Employees' Thrift and Stock Purchase Plan due to moving certain hourly
employees to salaried employee status.
12
<PAGE>
FMC CORPORATION 401(k) PLAN Schedule 1
FOR EMPLOYEES COVERED BY A
COLLECTIVE BARGAINING AGREEMENT
Item 27a--Schedule of Assets Held for Investment Purposes
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
Description of investment including Current value
Identity of issue, borrower, lessor maturity date, rate of interest at December 31,
or similar party collateral, par, or maturity value Cost 1997
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FMC Common Stock Fund FMC Corporation Stock $ * 2,099,645
Party in Interest 31,192 shares
Stable Value Fund Portfolio includes investment contracts
offered by major insurance companies * 7,467,394
and other approved financial institutions
Clipper Fund Stock Long-term Growth Fund * 237,109
Mutual Qualified (Z) Fund Stock Long-term Growth Fund * 63,515
Sequoia Fund Stock Long-term Growth Fund * 417,409
Fidelity Puritan Fund Stock and Bond Fund * 498,189
Fidelity Blue Chip Growth Fund Large Companies Stock Fund * 6,741,818
Low-Priced Stock Fund Growth Mutual Fund * 576,756
Diversified International Fund Growth Mutual Fund of Foreign
Companies * 236,654
Retirement Government Money Market
Portfolio Money Market Mutual Fund * 668,225
U. S. Equity Index Pool Stock Index Fund * 414,516
Participants' loans receivable Varying rate of interest 7.2% - 10.0% * 855,963
- --------------------------------------------------------------------------------------------------------------------------
Total assets held for investment purposes $ -- 20,277,193
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Cost information not available
See accompanying independent auditors' report.
13
<PAGE>
FMC CORPORATION 401(k) PLAN Schedule 2
FOR EMPLOYEES COVERED BY A
COLLECTIVE BARGAINING AGREEMENT
Item 27d--Schedule of 5% Reportable Transactions
Year ended December 31, 1997
<TABLE>
<CAPTION>
================================================================================================================================
Current
value of
Expenses asset on
Description Purchase Selling incurred Cost of transaction Net gain
Identity of party involved of security price price with trade security date (loss)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Fidelity Institutional Retirement Stable Value Fund $21,805,797 14,422,875 -- 14,422,875 14,422,875 --
Services Company
Number of Transactions: 213
Fidelity Institutional Retirement FMC Stock Fund * 3,536,150 -- -- -- -- --
Services Company
Number of Transactions: 83
Fidelity Institutional Retirement Blue Chip Growth Fund 9,886,609 3,805,169 -- 3,511,687 3,805,169 293,482
Services Company
Number of Transactions: 188
Fidelity Institutional Retirement U.S. Equity Index Fund 8,034,127 8,808,855 -- 7,671,377 8,808,855 1,137,478
Services Company
Number of Transactions: 139
================================================================================================================================
</TABLE>
* Party in Interest
See accompanying independent auditors' report.
14
<PAGE>
================================================================================
EXHIBIT INDEX
NUMBER IN
EXHIBIT TABLE DESCRIPTION
- ------------- -----------
10.1 FMC Employees' 401(k) Plan for Employees Covered by a
Collective Bargaining Agreement (incorporated by reference
from Exhibit 4.5 to the Form S-8 filed on September 1, 1998).
10.2 Consent of KPMG Peat Marwick LLP
<PAGE>
EXHIBIT 10.2
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The Employee Welfare Benefits Plan
Committee of FMC Corporation:
We consent to incorporation by reference herein of our report dated June 26,
1998, related to the statements of net assets available for plan benefits of FMC
Corporation 401(k) Plan for Employees Covered by a Collective Bargaining
Agreement (the Plan) as of December 31, 1997 and December 31, 1996, and the
related statements of changes in net assets available for plan benefits for each
of the years in the two year period ended December 31, 1997, which report
appears in the December 31, 1997 annual report on Form 11-K of FMC Corporation
401(k) Plan for Employees Covered by a Collective Bargaining Agreement for the
year ended December 31, 1997.
/s/ KPMG Peat Marwick LLP
Chicago, Illinois
August 31, 1998
