<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, 1998
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 thereunto
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: June 25, 1999
<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, 1998..................... 2
Statement of Net Assets Available for Plan Benefits
with Fund Information - December 31, 1997..................... 3
Statement of Changes in Net Assets Available for Plan Benefits
with Fund Information - Year ended December 31, 1998.......... 4
Statement of Changes in Net Assets Available for Plan Benefits
with Fund Information - Year ended December 31, 1997.......... 5-6
Notes to Financial Statements................................... 7-12
<CAPTION>
Schedule
--------
<S> <C> <C>
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, 1998 and 1997, 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, 1998 and 1997, 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.
/s/ KPMG LLP
Chicago, Illinois
June 25, 1999
<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, 1998
<TABLE>
<CAPTION>
==================================================================================================================================
FMC Stable Mutual Fidelity Fidelity
Stock Value Clipper Qualified(Z) Sequoia Puritan Blue Chip
Fund Fund Fund Fund Fund Fund Growth Fund
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investments at fair value $ 1,298,934 6,171,030 304,472 31,108 1,326,441 590,756 6,173,909
Receivables from participants:
Contributions 2,287 14,030 1,860 104 6,334 2,569 15,266
Loans - - - - - - -
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets available for benefits $ 1,301,221 6,185,060 306,332 31,212 1,332,775 593,325 6,189,175
==================================================================================================================================
<CAPTION>
==================================================================================================================================
Retirement
Low-Priced Diversified Government U.S.
Stock International Money Market Equity Loan
Fund Fund Fund Index Pool Fund Total
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investments at fair value 380,642 265,207 465,389 556,469 - $ 17,564,357
Receivables from participants:
Contributions 1,563 864 1,998 1,686 - 48,561
Loans - - - - 915,120 915,120
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets available for benefits 382,205 266,071 467,387 558,155 915,120 $ 18,528,038
==================================================================================================================================
</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
<TABLE>
<CAPTION>
December 31, 1997
==================================================================================================================================
FMC Stable Mutual Fidelity Fidelity
Stock Value Clipper Qualified(Z) Sequoia Puritan Blue Chip
Fund Fund Fund Fund Fund Fund Growth Fund
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <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
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
==================================================================================================================================
<CAPTION>
December 31, 1997
===================================================================================================================================
Retirement
Low-Priced Diversified Government U. S.
Stock International Money Market Equity Loan
Fund Fund Fund Index Pool Fund Total
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investments at fair value 576,756 236,654 668,225 414,516 - $19,421,230
Participants' loans receivable - - - - 855,963 855,963
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets available for benefits 576,756 236,654 668,225 414,516 855,963 $20,277,193
===================================================================================================================================
</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, 1998
==================================================================================================================================
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 $ (269,416) - (5,167) (747) 161,670 18,114
Interest and dividend income 5,787 495,181 55,214 3,200 66,610 62,635
Contributions 188,160 919,300 102,608 16,013 240,651 154,339
Loan repayments 26,381 106,023 6,562 894 21,309 8,787
- ----------------------------------------------------------------------------------------------------------------------------------
Total additions (49,088) 1,520,504 159,217 19,360 490,240 243,875
- ----------------------------------------------------------------------------------------------------------------------------------
Deductions:
Distributions to participants 66,549 220,433 1,049 - 6,322 47,322
Loans issued 72,593 164,531 15,929 4,735 46,162 16,378
Administrative expenses 4,909 10,359 901 69 1,530 1,611
- ----------------------------------------------------------------------------------------------------------------------------------
Total deductions 144,051 395,323 17,879 4,804 54,014 65,311
- ----------------------------------------------------------------------------------------------------------------------------------
Net additions (deductions) prior to interfund
transfers and other changes (193,139) 1,125,181 141,338 14,556 436,226 178,564
Interfund transfers, net 40,735 (407,105) (20) (20,211) 694,213 45,648
Net transferred out (Note 5) (646,020) (2,000,410) (72,095) (26,648) (215,073) (129,076)
- ----------------------------------------------------------------------------------------------------------------------------------
Net additions (deductions) (798,424) (1,282,334) 69,223 (32,303) 915,366 95,136
Net assets available for benefits at
beginning of year 2,099,645 7,467,394 237,109 63,515 417,409 498,189
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets available for benefits at
end of year $1,301,221 6,185,060 306,332 31,212 1,332,775 593,325
==================================================================================================================================
<CAPTION>
Year ended December 31, 1998
====================================================================================================================================
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 1,536,025 (15,829) 18,967 - 120,940 -
Interest and dividend income 310,591 30,763 10,549 29,161 1,693 -
Contributions 1,006,119 106,438 79,237 131,853 128,346 -
Loan repayments 101,428 4,620 3,934 7,351 9,130 (296,419)
- -----------------------------------------------------------------------------------------------------------------------------------
Total additions 2,954,163 125,992 112,687 168,365 260,109 (296,419)
- -----------------------------------------------------------------------------------------------------------------------------------
Deductions:
Distributions to participants 250,662 2,260 11,414 40,127 13,098 3,957
Loans issued 228,663 12,696 10,326 15,565 19,922 (607,500)
Administrative expenses 7,865 514 710 1,187 760 -
- -----------------------------------------------------------------------------------------------------------------------------------
Total deductions 487,190 15,470 22,450 56,879 33,780 (603,543)
- -----------------------------------------------------------------------------------------------------------------------------------
Net additions (deductions) prior to interfund
transfers and other changes 2,466,973 110,522 90,237 111,486 226,329 307,124
Interfund transfers, net (248,929) (35,342) (4,090) (126,709) 61,810 -
Net transferred out (Note 5) (2,770,687) (269,731) (56,730) (185,615) (144,500) (247,967)
- -----------------------------------------------------------------------------------------------------------------------------------
Net additions (deductions) (552,643) (194,551) 29,417 (200,838) 143,639 59,157
Net assets available for benefits at
beginning of year 6,741,818 576,756 236,654 668,225 414,516 855,963
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets available for benefits at
end of year 6,189,175 382,205 266,071 467,387 558,155 915,120
===================================================================================================================================
<CAPTION>
Year ended December 31, 1998
=====================================================================
Total
- ---------------------------------------------------------------------
<S> <C>
Additions:
Net appreciation (depreciation) in
fair value of investments 1,564,557
Interest and dividend income 1,071,384
Contributions 3,073,064
Loan repayments -
- ---------------------------------------------------------------------
Total additions 5,709,005
- ---------------------------------------------------------------------
Deductions:
Distributions to participants 663,193
Loans issued -
Administrative expenses 30,415
- ---------------------------------------------------------------------
Total deductions 693,608
- ---------------------------------------------------------------------
Net additions(deductions) prior to interfund
transfers and other changes 5,015,397
Interfund transfers, net -
Net transferred out (Note 5) (6,764,552)
- ---------------------------------------------------------------------
Net additions (deductions) (1,749,155)
Net assets available for benefits at
beginning of year 20,277,193
- ---------------------------------------------------------------------
Net assets available for benefits at
end of year 18,528,038
=====================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<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
Year ended December 31, 1997
<TABLE>
<CAPTION>
=================================================================================================================================
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, net (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
=================================================================================================================================
<CAPTION>
=================================================================================================================================
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, net 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.
5
<PAGE>
FMC CORPORATION 401(k) PLAN
FOR EMPLOYEES COVERED BY A
COLLECTIVE BARGAINING AGREEMENT
Statement of Changes in Net Assets Available for Benefits with Fund Information
(continued)
Year ended December 31, 1997
<TABLE>
<CAPTION>
================================================================================================================================
Harsco Guaranteed First Money Active Stock
Stock Interest Essex Market Balanced Index
Fund Fund Fund Account Fund Z Fund
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Net appreciation (depreciation) in
fair value of investments $ 129 - 489,189 13,173 4,297 896,466
Interest and dividend income - 530,432 3,076 607 71 1,936
Contributions - 745,215 410,633 54,013 7,056 174,720
Loan repayments - 55,776 7,690 3,040 140 6,985
- --------------------------------------------------------------------------------------------------------------------------------
Total additions 129 1,331,423 910,588 70,833 11,564 1,080,107
- --------------------------------------------------------------------------------------------------------------------------------
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
Administrative expenses - 2,393 569 104 - 30
- --------------------------------------------------------------------------------------------------------------------------------
Total deductions - 269,220 66,705 16,732 2,368 17,610
- --------------------------------------------------------------------------------------------------------------------------------
Net additions prior to interfund
transfers and other changes 129 1,062,203 843,883 54,101 9,196 1,062,497
Interfund transfers, net - (57,299) 59,805 (11,488) 1,206 (21,482)
Net transferred in (out) (Note 5) (129) (20,424,888) (6,313,265) (696,191) (92,953) (7,015,285)
- --------------------------------------------------------------------------------------------------------------------------------
Net additions (deductions) - (19,419,984) (5,409,577) (653,578) (82,551) (5,974,270)
Net assets available for benefits at
beginning of year - 19,419,984 5,409,577 653,578 82,551 5,974,270
- --------------------------------------------------------------------------------------------------------------------------------
Net assets available for benefits at
end of year $ - - - - - -
================================================================================================================================
<CAPTION>
===================================================================================================================================
International Allocation Jennison Money Government
Stock Balanced Growth Market Income
Fund Z Fund Z Fund Z Assets Z Fund Z Total
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Net appreciation (depreciation) in
fair value of investments $ 69,431 4,549 168,323 - (951) $ 3,840,300
Interest and dividend income 229 1,172 3,462 4,950 2,029 1,700,155
Contributions 55,053 13,616 84,800 16,369 4,118 4,497,963
Loan repayments 694 347 4,689 28 - -
- -----------------------------------------------------------------------------------------------------------------------------------
Total additions 125,407 19,684 261,274 21,347 5,196 10,038,418
- -----------------------------------------------------------------------------------------------------------------------------------
Deductions:
Distributions to participants - 924 - - - 1,171,637
Loans issued 154 865 2,499 2,976 - -
Administrative expenses - - - 75 - 3,448
- -----------------------------------------------------------------------------------------------------------------------------------
Total deductions 154 1,789 2,499 3,051 - 1,175,085
- -----------------------------------------------------------------------------------------------------------------------------------
Net additions prior to interfund
transfers and other changes 125,253 17,895 258,775 18,296 5,196 8,863,333
Interfund transfers, net (8,889) (1,657) (20,022) 70,240 - -
Net transferred in (out) (Note 5) (837,175) (136,483) (1,446,604) (346,907) (75,040) (25,694,525)
- -----------------------------------------------------------------------------------------------------------------------------------
Net additions (deductions) (720,811) (120,245) (1,207,851) (258,371) (69,844) (16,831,192)
Net assets available for benefits at
beginning of year 720,811 120,245 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.
<PAGE>
FMC CORPORATION 401(k) PLAN
FOR EMPLOYEES COVERED BY A
COLLECTIVE BARGAINING AGREEMENT
Notes to Financial Statements
December 31, 1998 and 1997
- --------------------------------------------------------------------------------
(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 is for 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, as amended (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 record keeper.
(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
Upon enrollment in the Plan, a participant may direct his or her
contributions 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 investment contracts offered
by insurance companies and other approved financial institutions. From
January 1, 1998 through December 31, 1998 the guaranteed effective
annual yield was approximately 6.99% and from June 1, 1997 through
December 31, 1997 the guaranteed effective annual yield was
approximately 7.2%.
3) Clipper Fund - Funds are invested in common stocks which are
considered undervalued by the fund manager 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.
7
<PAGE>
FMC CORPORATION 401(k) PLAN
FOR EMPLOYEES COVERED BY A
COLLECTIVE BARGAINING AGREEMENT
Notes to Financial Statements
December 31, 1998 and 1997
- --------------------------------------------------------------------------------
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 its agencies.
11) U.S. Equity Index Pool - Funds are invested primarily in common
stocks of the 500 companies that comprise the S&P 500.
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 once a year
after a participant reaches age 55.
Prior to June 1, 1997, a participant could direct his or her contributions
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, the 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.
4) Money Market Account - Funds were invested in high quality money
market instruments maturing in 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 - Funds were invested in equity securities intended
to provide investment results that correspond to the price and yield
performance of Standard & Poor's 500 Composite Stock Price Index.
8
<PAGE>
FMC CORPORATION 401(k) PLAN
FOR EMPLOYEES COVERED BY A
COLLECTIVE BARGAINING AGREEMENT
Notes to Financial Statements
December 31, 1998 and 1997
- --------------------------------------------------------------------------------
7) International Stock Fund Z - Funds were invested in a diversified
portfolio of securities which consist of equity securities of foreign
issuers.
8) Allocation Balanced Fund Z - Funds were invested in a diversified
portfolio of equity securities, debt obligations, and money market
instruments.
9) 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.
10) Money Market Assets Z - Funds were invested in high quality money
market instruments with maturities of 13 months or less.
11) 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.
(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,
1998, 1,751 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 $5,000 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.
9
<PAGE>
FMC CORPORATION 401(k) PLAN
FOR EMPLOYEES COVERED BY A
COLLECTIVE BARGAINING AGREEMENT
Notes to Financial Statements
December 31, 1998 and 1997
- --------------------------------------------------------------------------------
(i) Withdrawals and Participants Loans
Certain locations covered under the Plan allow participants to make
hardship cash withdrawals (subject to the Plan's provision's, 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 is $1,000. The maximum that may be borrowed is the lesser of
$50,000, as adjusted, or 50% of the participant's vested account balance.
Loans must be repaid over 60 months with interest at the prevailing market
rates or some other reasonable rate as determined by the Company.
Participant loans outstanding as of December 31, 1998 and 1997, which are
reported under the Loan Fund, were $915,120 and $855,963, respectively.
(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.
(b) Investment Transactions
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.
10
<PAGE>
FMC CORPORATION 401(k) PLAN
FOR EMPLOYEES COVERED BY A
COLLECTIVE BARGAINING AGREEMENT
Notes to Financial Statements
December 31, 1998 and 1997
- --------------------------------------------------------------------------------
(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,
------------------------------
1998 1997
- --------------------------------------------------------------------------------
<S> <C> <C>
FMC Stock Fund $1,298,934 $2,099,645
Stable Value Fund 6,171,030 7,467,394
Sequoia Fund 1,326,441 -
Blue Chip Stock Fund 6,173,909 6,741,818
- --------------------------------------------------------------------------------
</TABLE>
During 1998 and 1997, the Plan's investments (including investments bought,
sold, and held during the year) appreciated (depreciated) as follows:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Year ended December 31,
--------------------------------
1998 1997
- --------------------------------------------------------------------------------
<S> <C> <C>
FMC Stock Fund $ (269,416) $ 138,684
Clipper Fund (5,167) 1,118
Mutual Qualified (Z) Fund (747) 15,290
Sequoia Fund 161,670 80,447
Fidelity Puritan Fund 18,114 10,016
Fidelity Blue Chip Stock Fund 1,536,025 660,378
Low-Priced Stock Fund (15,829) 23,004
Diversified International Fund 18,967 77,514
U.S. Equity Index Pool Fund 120,940 1,189,243
Harsco Stock Fund - 129
First Essex Fund - 489,189
Money Market Account - 13,173
Active Balanced Fund Z - 4,297
Stock Index Fund - 896,466
International Stock Fund Z - 69,431
Allocation Balanced Fund Z - 4,549
Jennison Growth Fund Z - 168,323
Government Income Fund Z - (951)
- --------------------------------------------------------------------------------
$1,564,557 $3,840,300
- --------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
FMC CORPORATION 401(k) PLAN
FOR EMPLOYEES COVERED BY A
COLLECTIVE BARGAINING AGREEMENT
Notes to Financial Statements
December 31, 1998 and 1997
- --------------------------------------------------------------------------------
(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. The plan
administrator will amend the plan, if necessary, in order to achieve
compliant status.
(5) Plan Merger and Asset Transfers
During 1998, four of the Company's bargaining employee units at Pocatello,
ID, Kemmerer, WY, Lawrence, KS, and Carteret, NJ were merged into the FMC
Employees' Thrift and Stock Purchase Plan (the FMC Salaried Plan). As a
result, the plan transferred assets value of $6,470,448 to the FMC Salaried
Plan. In addition, the Plan transferred $294,104 to other plans and
retirement accounts due to employee transfers and turnover, and to the FMC
Salaried Plan due to moving certain hourly employees to salaried employee
status.
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 other plans and retirement
accounts due to employee transfers and turnover, and to the FMC Salaried
Plan due to moving certain hourly employees to salaried employee status.
(6) Impact of Year 2000 Issue
The Year 2000 (Y2K) issue refers to the risk that systems, products, and
equipment using data sensitive software or computer chips with two digit
date fields will recognize a date using "00" as the year 1900 rather than
the year 2000. This could result in system failures, miscalculations, and
business interruptions that, if not addressed, could have a materially
adverse impact on the Plan.
The majority of the Plan's applications are already Y2K-compliant, and the
remainder will be before December 31, 1999. The Plan outsources most of its
critical computing operations to professional outsource service providers.
The Plan has confirmed or is confirming that each of its outsourcers is
either already Y2K-compliant or has a detailed program in place to achieve
compliance within an acceptable time frame. The plan will not bear any
costs associated with making the systems Y2K-compliant.
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
December 31, 1998
<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 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FMC Common Stock Fund FMC Corporation Stock $ 1,165,906 1,298,934
Party in Interest 23,195 shares
Stable Value Fund Portfolio includes investment contracts
offered by major insurance companies 6,171,032 6,171,030
and other approved financial institutions
Clipper Fund Stock Long-term Growth Fund 316,228 304,472
Mutual Qualified (Z) Fund Stock Long-term Growth Fund 34,408 31,108
Sequoia Fund Stock Long-term Growth Fund 1,158,427 1,326,441
Fidelity Puritan Fund Stock and Bond Fund 572,450 590,756
Fidelity Blue Chip Growth Fund Large Companies Stock Fund 4,753,266 6,173,909
Low-Priced Stock Fund Growth Mutual Fund 409,523 380,642
Diversified International Fund Growth Mutual Fund of Foreign
Companies 253,280 265,207
Retirement Government Money Market Fund Money Market Mutual Fund 465,389 465,389
U. S. Equity Index Pool Stock Index Fund 426,530 556,469
Participants' loans receivable Varying rate of interest 7.2% - 10.0% 915,120 915,120
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets held for investment purposes $16,641,559 18,479,477
====================================================================================================================================
</TABLE>
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, 1998
<TABLE>
<CAPTION>
=========================================================================================================================
Expenses
Description Purchase Selling incurred Cost of
Identity of party involved of security price price with trades security
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Fidelity Institutional Retirement Stable Value Fund $ 2,193,100 3,489,463 - 3,489,463
Services Company
Number of Transactions: 318
Fidelity Institutional Retirement Sequoia Fund 1,111,830 364,467 - 331,405
Services Company
Number of Transactions: 215
Fidelity Institutional Retirement FMC Stock Fund* 317,960 849,255 - 636,584
Services Company
Number of Transactions: 214
Fidelity Institutional Retirement Blue Chip Growth Fund 2,013,890 4,117,824 - 3,641,854
Services Company
Number of Transactions: 332
=========================================================================================================================
<CAPTION>
==========================================================================
Current
value of asset
on transaction
date Net gain
- --------------------------------------------------------------------------
<S> <C> <C>
Fidelity Institutional Retirement 3,489,463 -
Services Company
Number of Transactions: 318
Fidelity Institutional Retirement 364,467 33,062
Services Company
Number of Transactions: 215
Fidelity Institutional Retirement 849,255 212,671
Services Company
Number of Transactions: 214
Fidelity Institutional Retirement 4,117,824 475,970
Services Company
Number of Transactions: 332
==========================================================================
</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).
23.1 Consent of KPMG LLP
<PAGE>
EXHIBIT 23.1
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The Employee Welfare Benefits Plan
Committee of FMC Corporation:
We consent to incorporation by reference in the registration statement (No. 333-
62683) on Form S-8 of FMC Corporation of our report dated June 25, 1999,
relating 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, 1998 and December 31, 1997, 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, 1998, which report
appears in the December 31, 1998 annual report on Form 11-K of FMC Corporation
401(k) Plan for Employees Covered by a Collective Bargaining Agreement for the
fiscal year ended December 31, 1998.
/s/ KPMG LLP
Chicago, Illinois
June 25, 1999
