<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1996
COMMISSION FILE NUMBER: 1-1927
---------
CELERON CORPORATION
EMPLOYEE SAVINGS PLAN
(FULL TITLE OF THE PLAN)
---------
THE GOODYEAR TIRE & RUBBER COMPANY
(NAME OF ISSUER OF THE SECURITIES)
1144 EAST MARKET STREET
AKRON, OHIO 44316-0001
(ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICE)
<PAGE> 2
CELERON CORPORATION
EMPLOYEE SAVINGS PLAN
ITEM 1. Not applicable.
ITEM 2. Not applicable.
ITEM 3. Not applicable.
ITEM 4. FINANCIAL STATEMENTS OF THE PLAN
The Financial Statements of the Celeron Corporation Employee Savings
Plan for the fiscal year ended December 31, 1995, together with the report of
Price Waterhouse LLP, independent accountants, are attached to this Annual
Report on Form 11-K as Annex A, and are by specific reference incorporated
herein and filed as a part of hereof. The Financial Statements and the Notes
thereto are presented in lieu of the financial statements required by Items 1, 2
and 3 of Form 11-K and were prepared in accordance with the financial reporting
requirements of the Employee Retirement Income Security Act of 1974.
EXHIBIT. CONSENT OF INDEPENDENT ACCOUNTANTS (EXHIBIT NO. 23)
Consent of Price Waterhouse LLP, independent accountants, to
incorporation by reference of their report set forth at page 2 of Annex A to
this Form 11-K in Registration Statement No. 33-65185 on Form S-8.
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934,
THE PLAN ADMINISTRATOR HAS DULY CAUSED THIS ANNUAL REPORT TO BE SIGNED BY THE
UNDERSIGNED THEREUNTO DULY AUTHORIZED.
SAVING
THE GOODYEAR TIRE & RUBBER COMPANY
(AS THE ISSUER) AND CELERON CORPORATION,
PLAN ADMINISTRATOR OF THE CELERON
CORPORATION EMPLOYEE S PLAN
Dated: June 26, 1997 By: /s/ Richard W Hauman
---------------------------------------
Richard W Hauman,
Vice President and Treasurer
of
The Goodyear Tire & Rubber Company
and
Assistant Treasurer and Assistant Comptroller
of
Celeron Corporation
<PAGE> 3
ANNEX A
TO
Form 11-K
CELERON CORPORATION
-------------------
EMPLOYEE SAVINGS PLAN
---------------------
* * * * *
FINANCIAL STATEMENTS
--------------------
DECEMBER 31, 1996 AND 1995
--------------------------
<PAGE> 4
CELERON CORPORATION
-------------------
EMPLOYEE SAVINGS PLAN
---------------------
INDEX TO FINANCIAL STATEMENTS
-----------------------------
DECEMBER 31, 1996 AND 1995
--------------------------
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Report of Independent Accountants 2
Financial Statements:
Statement of Net Assets Available for Plan Benefits,
with Fund Information at December 31,
1996 and 1995 3-4
Statement of Changes in Net Assets Available for Plan
Benefits, with Fund Information for the Years
Ended December 31, 1996 and 1995 3-4
Notes to Financial Statements 5-14
</TABLE>
Note: Certain schedules required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement
Income Security Act of 1974 have been omitted because of the absence of
the conditions under which they are required.
<PAGE> 5
REPORT OF INDEPENDENT ACCOUNTANTS
---------------------------------
June 25, 1997
To the Plan Administrator and Participants
of the Celeron Corporation Employee Savings
Plan (sponsored by Celeron Corporation)
In our opinion, the accompanying statement of net assets available for plan
benefits and the related statement of changes in net assets available for plan
benefits present fairly, in all material respects, the net assets available for
benefits of the Celeron Corporation Employee Savings Plan (sponsored by Celeron
Corporation) at December 31, 1996 and 1995, and the changes in net assets
available for plan benefits for the years then ended, in conformity with
generally accepted accounting principles. 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 of these statements in accordance with generally accepted auditing
standards which 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, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for the opinion expressed above.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The Fund Information in the statement of
net assets available for plan benefits and the statement 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
changes in net assets available for plan benefits of each fund. The Fund
Information has been subjected to the auditing procedures applied in the audits
of the basic financial statements and, in our opinion, is fairly stated in all
material respects in relation to the basic financial statements taken as a
whole.
<PAGE> 6
THE GOODYEAR TIRE & RUBBER COMPANY
----------------------------------
EMPLOYEE SAVINGS PLAN FOR CELERON EMPLOYEES
-------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS,
----------------------------------------------------
WITH FUND INFORMATION
---------------------
<TABLE>
<CAPTION>
(Dollars in Thousands) December 31, 1996
-------------------------------------------------------------------------------
Fund Information
-----------------------------------------------------------------
Conservative Moderate Aggressive S&P 500
Stable Asset Asset Asset Equity
Value Allocation Allocation Allocation Index
Total Fund Fund Fund Fund Fund
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Plan's Interest in Master Trust
Representing Total Assets
Available for Plan Benefits $ 8,424 $ 1,867 $ 12 $ 134 $ 33 $ 2,804
======= ======= ======= ======= ======= =======
<CAPTION>
(Dollars in Thousands) December 31, 1996
----------------------------------------------------------------------
Fund Information
----------------------------------------------------------------------
Large Small International
Capitalization Capitalization Stock Company
Equity Equity Equity Stock Loan
Fund Fund Fund Fund Fund
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Plan's Interest in Master Trust
Representing Total Assets
Available for Plan Benefits $ 109 $ 259 $ 84 $ 2,568 $ 554
======= ======= ======= ======= =======
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS,
---------------------------------------------------------------
WITH FUND INFORMATION
---------------------
<TABLE>
<CAPTION>
(Dollars in Thousands) For the Year Ended December 31, 1996
--------------------------------------------------------------------------------
Fund Information
-------------------------------------------------------------------
Conservative Moderate Aggressive S&P 500
Stable Asset Asset Asset Equity
Value Allocation Allocation Allocation Index
Total Fund Fund Fund Fund Fund
-------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Increase in Assets:
Contributions:
Employer $ 143 $ -- $ -- $ -- $ -- $ --
Employee 451 138 6 20 13 227
------- ------- ------- ------- ------- -------
594 138 6 20 13 227
Investment Income from Plan's
Interest in Master Trust 1,055 107 1 10 4 492
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries 352 107 -- -- -- 92
Administrative Expenses 7 3 -- -- -- 3
------- ------- ------- ------- ------- -------
359 110 -- -- -- 95
Transfers:
Transfers Between Plans 2 -- -- -- -- --
Transfers Between Funds (1) (197) 47 16 (211)
Loan Transfers To or From Plan -- -- -- -- -- --
Loans to Participants 1 (137) (1) (8) (6) (202)
Loan Repayments: -- -- -- -- -- --
Principal (1) 55 4 6 5 119
Interest 1 15 2 2 1 23
------- ------- ------- ------- ------- -------
2 (264) 5 47 16 (271)
------- ------- ------- ------- ------- -------
Increase in Assets During the Year 1,292 (129) 12 77 33 353
Net Assets at Beginning of Year 7,132 1,996 -- 57 -- 2,451
------- ------- ------- ------- ------- -------
Net Assets at End of Year $ 8,424 $ 1,867 $ 12 $ 134 $ 33 $ 2,804
======= ======= ======= ======= ======= =======
<CAPTION>
(Dollars in Thousands) December 31, 1996
-------------------------------------------------------------------------
Fund Information
-------------------------------------------------------------------------
Large Small International
Capitalization Capitalization Stock Company
Equity Equity Equity Stock Loan
Fund Fund Fund Fund Fund
------- ------- ------- ------- -------
Increase in Assets:
Contributions:
Employer $ -- $ -- $ -- $ 143 $ --
Employee 12 30 5 -- --
------- ------- ------- ------- -------
12 30 5 143 --
Investment Income from Plan's
Interest in Master Trust 10 27 6 355 43
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries 16 -- -- 137 --
Administrative Expenses -- -- -- 1 --
------- ------- ------- ------- -------
16 -- -- 138 --
Transfers:
Transfers Between Plans -- -- -- 2 --
Transfers Between Funds 109 212 69 (46) --
Loan Transfers To or From Plan -- -- -- -- --
Loans to Participants (10) (26) -- -- 391
Loan Repayments: -- -- -- -- --
Principal 3 13 3 -- (209)
Interest 1 3 1 -- (47)
------- ------- ------- ------- -------
103 202 73 (44) 135
------- ------- ------- ------- -------
Increase in Assets During the Year 109 259 84 316 178
Net Assets at Beginning of Year -- -- -- 2,252 376
------- ------- ------- ------- -------
Net Assets at End of Year $ 109 $ 259 $ 84 $ 2,568 $ 554
======= ======= ======= ======= =======
</TABLE>
The accompanying notes are an integral part of these statements.
3
<PAGE> 7
THE GOODYEAR TIRE & RUBBER COMPANY
----------------------------------
EMPLOYEE SAVINGS PLAN FOR CELERON EMPLOYEES
-------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
--------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Dollars in Thousands) December 31, 1995
--------------------------------------------------------------------------------------
Fund Information
--------------------------------------------------------------------------------------
Company Fixed Stock
Stock Interest Equity Balanced Loan
Total Fund Fund Fund Fund Fund
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Plan's Interest in Master Trust
Representing Total Assets
Available for Plan Benefits $ 7,132 $ 2,252 $ 1,996 $ 2,451 $ 57 $ 376
=========== =========== =========== =========== =========== ===========
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
-------------------------------------------------------------------------------------
(Dollars in Thousands) For the Year Ended December 31, 1995
--------------------------------------------------------------------------------------
Fund Information
--------------------------------------------------------------------------------------
Company Fixed Stock
Stock Interest Equity Balanced Loan
Total Fund Fund Fund Fund Fund
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Increase in Assets:
Contributions:
Employer $ 244 $ 244 $ -- $ -- $ -- $ --
Employee 537 -- 238 281 18 --
----------- ----------- ----------- ----------- ----------- -----------
781 244 238 281 18 --
Investment Income from Plan's
Interest in Master Trust 1,428 601 130 667 8 22
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries 616 204 231 173 (1) 9
Administrative Expenses -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
616 204 231 173 (1) 9
Transfers:
Transfers Between Plans (2) (2) -- -- -- --
Transfers Between Funds -- -- 18 (20) 2 --
Transfers To or From Plan -- -- (110) (93) (2) 205
Loans to Participants -- -- -- -- -- --
Loan Repayments: -- -- -- -- -- --
Principal -- -- 74 85 8 (167)
Interest -- -- 10 11 1 (22)
----------- ----------- ----------- ----------- ----------- -----------
(2) (2) (8) (17) 9 16
----------- ----------- ----------- ----------- ----------- -----------
Increase in Assets During the Year 1,591 639 129 758 36 29
Net Assets at Beginning of Year 5,541 1,613 1,867 1,693 21 347
----------- ----------- ----------- ----------- ----------- -----------
Net Assets at End of Year $ 7,132 $ 2,252 $ 1,996 $ 2,451 $ 57 $ 376
=========== =========== =========== =========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these statements.
4
<PAGE> 8
CELERON CORPORATION
-------------------
EMPLOYEE SAVINGS PLAN
---------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
DECEMBER 31, 1996 AND 1995
--------------------------
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
- -------------------------------------------
Basis of Accounting
- -------------------
The accounts of the Celeron Corporation Employee Savings Plan (the "Plan") are
maintained on the accrual basis of accounting and in accordance with The
Northern Trust Company (the "Trustee") Trust Agreement, effective November 1,
1995. The trust was amended effective November 1, 1995 to change the Trustee of
the Plan from Bankers Trust Company to The Northern Trust Company. All assets of
the Plan in the master trust were transferred accordingly.
Trust Assets
- ------------
Savings plans sponsored by The Goodyear Tire & Rubber Company and certain
subsidiaries (the "Company") maintain their assets in a master trust
administered by the Trustee. At December 31, 1996 and 1995 the Company
sponsored six savings plans. The Plan's undivided interest in the trust is
presented in the accompanying financial statements in accordance with the
allocation made by the Trustee. At December 31, 1996 and 1995, the Plan's
undivided interest in the master trust was .5%.
Asset Valuation
- ---------------
The majority of the assets of the Plan are valued at the current market value.
Investments in the Company Stock Fund are valued at the last reported sales
price on the last business day of the month. If no sales were reported on that
date, the shares are valued at the last bid price. Investments held in the
Stable Value Fund are invested in various instruments that have a rate of
return, and are reported at contract value. Investments in the Conservative
Asset Allocation Fund, Moderate Asset Allocation Fund, Aggressive Asset
Allocation Fund, S&P 500 Index Stock Equity Fund, Small Capitalization Stock
Equity Fund, Large Capitalization Stock Equity Fund, and the International Stock
Equity Fund are valued based on units of participation in a commingled fund as
reported by the fund manager. The allocation of assets, interest and dividend
income, and realized and unrealized appreciation and depreciation is made based
upon contributions received and benefits paid by each participating plan on a
monthly basis.
5
<PAGE> 9
Income Recognition
- ------------------
Employer and employee contributions are recognized in Plan equity on the accrual
basis of accounting.
Dividend income is recorded on the ex-dividend date.
Interest income is recorded as earned.
Appreciation or depreciation on Company common stock distributed to participants
is the difference between the weighted average cost and the market value on the
monthly valuation date preceding the distribution.
Concentration of Credit Risk
- ----------------------------
The Stable Value Fund of the Plan invests part of the fund in guaranteed
investment contracts of financial institutions with strong credit ratings and
has established guidelines relative to diversification and maturities that
maintain safety and liquidity.
Use of Estimates
- ----------------
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the basic financial statements and related notes
to financial statements. Changes in such estimates may affect amounts reported
in future years.
GENERAL DESCRIPTION AND OPERATION OF THE PLAN:
- ----------------------------------------------
Inception
- ---------
The Plan is a defined contribution plan which became effective April l, 1985.
Eligibility
- -----------
All employees, including officers, of the Celeron Corporation are eligible to
participate in the Plan after completing one year of continuous service. At the
end of the 1996 plan year, approximately 132 employees of the Company were
eligible (135 in 1995), with approximately 112 employees participating in the
Plan (111 in 1995).
Vesting
- -------
Employee contributions are fully vested. Employer matching contributions become
vested after the participant has completed four years of continuous service
with the Company.
6
<PAGE> 10
Contributions
- -------------
Eligible employees may elect to contribute any whole percent from 1% to 16% of
earnings including wages, bonuses, commissions, overtime and vacation pay into
the Plan. Prior to February 1, 1996, participating employees could elect to have
their contribution invested in the Fixed Interest Fund, the Balanced Fund, the
Stock Equity Fund, or in any combination of these three funds in multiples of
10%. Beginning February 1, 1996, participating employees may elect to have their
contributions invested in the Stable Value Fund, Conservative Asset Allocation
Fund, Moderate Asset Allocation Fund, Aggressive Asset Allocation Fund, S&P 500
Index Stock Equity Fund, Small Capitalization Stock Equity Fund, Large
Capitalization Stock Equity Fund, the International Stock Equity Fund, or in any
combination of these eight funds in multiples of 1%. The Company calculates and
deducts employee contributions from gross earnings each pay period based on the
percent elected by the employee. Employees may change their contribution percent
up to the 15th day of the month for changes to be effective on the first day of
the following month. Employees may transfer amounts attributable to employee
contributions from one fund to the other on a daily. The minimum amount to be
transferred is $100. Eligible employees may enroll in the Plan effective on the
1st day of the month by enrolling by the 15th day of the prior month. Employees
may suspend their contributions at any time effective immediately.
Employees who are 52 years of age or older are able to transfer employer
contributions from the Company Stock Fund into the plan's other investment
funds.
The Plan has been established under section 401 of the Internal Revenue Code.
Therefore, employee and employer contributions to the Plan are not subject to
federal withholding tax, but are taxable when they are withdrawn from the Plan.
The Board of Directors of the Company determines the matching percent used as
the employer contribution for each Plan year. The Company matching
contributions are limited to the first 6% of employee contributions at the rate
of 50% and employee contributions are limited to $9,500 and $9,240 during 1996
and 1995, respectively.
Investments
- -----------
The Trustee of the Plan maintains the following ten funds under the Plan (The
following funds were added February 1, 1996 - Conservative Asset Allocation
Fund, Aggressive Asset Allocation Fund, Large Capitalization Stock Equity Fund,
Small Capitalization Stock Equity Fund, and the International Stock
Equity Fund).
* Stable Value Fund (formerly Fixed Interest Fund) - Employee contributions
are invested in various investment contracts which provide for rates of
return for particular periods of time.
7
<PAGE> 11
* Conservative Asset Allocation Fund - Employee contributions are invested in
a commingled fund containing a portfolio of U.S. common stocks and bonds
which provide an investment return similar to a portfolio invested 40% in
the Russell 3000 Index plus reinvested dividends and 60% in bonds which
compose the Lehman Aggregate Bond Index.
* Moderate Asset Allocation Fund (formerly Balanced Fund) - Employee
contributions are invested in a commingled fund containing a portfolio of
U.S. common stocks and bonds which provide an investment return similar to
a portfolio invested 60% in the Russell 3000 Index plus reinvested
dividends and 40% in bonds which compose the Lehman Aggregate Bond Index.
* Aggressive Asset Allocation Fund - Employee contributions are invested in a
commingled fund containing a portfolio of U.S. Common Stocks, international
stocks, and bonds which provide an investment return similar to a portfolio
invested 65% in the Russell 3000 Index plus reinvested dividends, 15% in
the EAFE Index, and 20% in bonds which compose the Lehman Aggregate Bond
Index.
* S&P 500 Index Stock Equity Fund (formerly a Stock Equity Fund) - Employee
contributions are invested in a commingled fund consisting of a portfolio
of common stocks which provide a return similar to the Standard and Poor's
Composite Index plus reinvested dividends.
* Large Capitalization Stock Equity Fund - Employee contributions are
invested in a commingled fund containing a portfolio of medium and large
companies. The objective of the fund is to invest in companies with
better-than-average prospects for appreciation.
* Small Capitalization Stock Equity Fund - Employee contributions are
invested in a commingled fund containing a portfolio of common stocks of
small companies that are expected to provide long term capital growth.
* International Stock Equity Fund - Employee contributions are invested in a
commingled fund containing a portfolio of common stocks and debt
obligations of companies and governments located outside of the United
States that are expected to provide long-term capital growth.
* Loan Investment Fund - Employee contributions are transferred from other
funds into the Loan Investment Fund, and then loaned to the participant.
The interest rate on the loan is determined by the Trustee.
* Company Stock Fund - Employer contributions are invested in Goodyear common
stock except for short-term investments needed for Plan operations. During
1996, the price per share of Goodyear common stock on The New York Stock
Exchange Composite Transactions ranged from $41.50 to $53.00 ($33.00 to
$47.50 during 1995). The closing price per share was $51.38 at December 31,
1996 ($45.38 at December 31, 1995).
8
<PAGE> 12
Participant Accounts
- --------------------
A Stable Value Fund, Conservative Asset Allocation Fund, Moderate Asset
Allocation Fund, Aggressive Asset Allocation Fund, S&P 500 Index Stock Equity
Fund, Small Capitalization Stock Equity Fund, Large Capitalization Stock Equity
Fund, the International Stock Equity Fund, Loan Investment Fund, and Company
Stock fund have been established for each participant in the Plan. All accounts
are valued daily by the Trustee.
Interest is automatically reinvested in each participant's respective accounts.
Price fluctuations and dividends in common stock of the Company and companies in
the Conservative Asset Allocation Fund, Moderate Asset Allocation Fund,
Aggressive Asset Allocation Fund, S&P 500 Index Stock Equity Fund, Small
Capitalization Stock Equity Fund, Large Capitalization Stock Equity Fund, the
International Stock Equity Fund, and the Company Stock Fund are reflected in
the unit value of the fund which effects the value of the participant's
accounts.
Plan Withdrawals and Distributions
- ----------------------------------
Participants may withdraw vested amounts from their accounts if they:
* Attain the age of 59 1/2, or
* Qualify for a serious financial hardship.
The Internal Revenue Service (IRS) issued guidelines governing financial
hardship. Under the IRS guidelines, withdrawals are permitted for severe
financial hardship for the following reasons:
* Unreimbursed medical expense of participant, spouse, or dependent.
* Post-secondary education of participant, spouse, or dependent.
* Prevention of eviction from primary residence of participant.
* Personal liability for expenses arising out of the death of a member of
participant's family.
* Purchase of a primary residence of participant.
* Prevention of foreclosure on primary residence of participant.
Contributions to the Plan are suspended for 12 months subsequent to a financial
hardship withdrawal.
Participant vested amounts are payable upon retirement, death or other
termination of employment.
All withdrawals and distributions are valued as of the end of the month they are
processed, and are subject to federal income tax upon receipt. Any non-vested
Company contributions are forfeited and applied to reduce future contributions
by the Company. During 1996 and 1995, the Plan had forfeiture credits in the
amounts of $9,613 and $22,822, respectively.
9
<PAGE> 13
Loan Investment Fund
- --------------------
Eligible employees may borrow money from their participant accounts. The minimum
amount to be borrowed is $1,000. The maximum amount to be borrowed is the lesser
of $50,000 reduced by the highest outstanding balance of any loan during the
preceding twelve month period, or 50% of the participant's vested account
balance. Effective February 1, 1996, the maximum number of loans that a
participant may have outstanding was increased from one to two. The interest
rate charged will be a fixed rate which will be established at the time of the
loan application. The interest rates was 9.25% during 1996 and ranged from 8.75%
to 10.0% during 1995.
Loan repayments, with interest, are made through payroll deductions. If a loan
is not repaid when due, the loan balance will be treated as a taxable
distribution from the Plan.
Expenses
- --------
Expenses of administering the Plan, including the payment of Trustee's fees and
brokerage commissions associated with the Company Stock Fund, are paid by the
Company. Expenses related to the asset management of the Investment Fund are
paid from such Funds which reduces the investment return reported and credited
to participant accounts.
Termination Provisions
- ----------------------
The Company anticipates and believes that the Plan will continue without
interruption, but reserves the right to discontinue the Plan. In the event of
termination, the obligation of the Company to make further contributions ceases.
All participants' accounts would then be fully vested with respect to Company
contributions.
RELATED PARTY TRANSACTIONS:
- ---------------------------
The Trustee serves as the fund manager of the S&P Equity Index Fund.
The Company Stock Fund is designed primarily for investment in common stock of
the Company.
TAX STATUS OF PLAN:
- -------------------
The IRS has advised on August 15, 1995 that the Plan is qualified in accordance
with the appropriate sections of the Internal Revenue Code, and the trust
established with the Plan constitutes a qualified trust and is therefore exempt
from federal income taxes. The plan administrator does not anticipate that
changes in the Plan or other events occurring after the receipt of the IRS
ruling will affect the qualification of the Plan or the tax exempt status of the
Trust.
FINANCIAL DATA OF THE MASTER TRUST: (SEE PAGES 11-14)
- -----------------------------------
10
<PAGE> 14
THE GOODYEAR TIRE & RUBBER COMPANY
----------------------------------
MASTER TRUST
------------
STATEMENT OF NET ASSETS, WITH FUND INFORMATION
----------------------------------------------
<TABLE>
<CAPTION>
(Dollars in Thousands) December 31, 1996
----------------------------------------------------------------
Fund Information
------------------------------------------------
Conservative Moderate
Stable Asset Asset
Value Allocation Allocation
Total Fund Fund Fund
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Assets:
Investments at Fair Market Value:
State Street Income and Growth Fund,
Cost $6,870 - 675,788 Units $ 7,363 $ -- $ 7,363 $ --
State Street Moderate Asset Allocation
Fund, Cost $30,809 - 2,951,057 Units 35,076 -- -- 35,076
State Street Life Solutions Growth A,
Cost $11,639 - 949,240 Units 12,772 -- -- --
Collective Daily Stock Index Fund, Cost
$231,718 - 16,369,098 Units 290,060 -- -- --
Twentieth Century Investors Income
Ultra Fund, Cost $25,304 - 909,122 Units 25,537 -- -- --
Franklin Strategic Series Small Cap
Growth Fund, Cost $42,224 - 2,188,282 Units 45,341 -- -- --
Templeton Foreign Fund, Cost
$15,889 - 1,639,127 Units 16,981 -- -- --
Common Stock of The Goodyear Tire & Rubber
Company, Cost $206,299 - 8,448,371 Shares 434,035 -- -- --
Short-Term Investments 29,439 22,775 -- --
Promissory Notes 80,906 -- -- --
---------- ---------- ---------- ----------
977,510 22,775 7,363 35,076
---------- ---------- ---------- ----------
Investments at Contract Value:
Guaranteed Investment Contracts 644,122 644,122 -- --
---------- ---------- ---------- ----------
Receivables:
Employee Contributions 28 16 -- 1
Employer Contributions 70 (13) -- --
Transfers -- 117 -- (61)
Accrued Interest and Dividends 2,555 1,065 11 53
Pending Security Sales 2,481 -- -- --
---------- ---------- ---------- ----------
5,134 1,185 11 (7)
---------- ---------- ---------- ----------
Total Assets 1,626,766 668,082 7,374 35,069
---------- ---------- ---------- ----------
Liabilities:
Administrative Expenses Payable 899 452 -- --
Distributions Payable 504 232 2 11
Forfeiture Credits -- -- -- --
---------- ---------- ---------- ----------
Total Liabilities 1,403 684 2 11
---------- ---------- ---------- ----------
Net Assets $1,625,363 $ 667,398 $ 7,372 $ 35,058
========== ========== ========== ==========
<CAPTION>
(Dollars in Thousands) December 31, 1996
-----------------------------------------------------------------
Fund Information
-----------------------------------------------------------------
Aggressive S&P 500 Large Small
Asset Equity Capitalization Capitalization
Allocation Index Equity Equity
Fund Fund Fund Fund
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Assets:
Investments at Fair Market Value:
State Street Income and Growth Fund,
Cost $6,870 - 675,788 Units $ -- $ -- $ -- $ --
State Street Moderate Asset Allocation
Fund, Cost $30,809 - 2,951,057 Units -- -- -- --
State Street Life Solutions Growth A,
Cost $11,639 - 949,240 Units 12,772 -- -- --
Collective Daily Stock Index Fund, Cost
$231,718 - 16,369,098 Units -- 290,060 -- --
Twentieth Century Investors Income
Ultra Fund, Cost $25,304 - 909,122 Units -- -- 25,537 --
Franklin Strategic Series Small Cap
Growth Fund, Cost $42,224 - 2,188,282 Units -- -- -- 45,341
Templeton Foreign Fund, Cost
$15,889 - 1,639,127 Units -- -- -- --
Common Stock of The Goodyear Tire & Rubber
Company, Cost $206,299 - 8,448,371 Shares -- -- -- --
Short-Term Investments -- -- -- --
Promissory Notes -- -- -- --
---------- ---------- ---------- ----------
12,772 290,060 25,537 45,341
---------- ---------- ---------- ----------
Investments at Contract Value:
Guaranteed Investment Contracts -- -- -- --
---------- ---------- ---------- ----------
Receivables:
Employee Contributions -- 10 -- 1
Employer Contributions -- -- -- --
Transfers (42) (328) 42 317
Accrued Interest and Dividends 20 440 39 69
Pending Security Sales -- -- -- --
---------- ---------- ---------- ----------
(22) 122 81 387
---------- ---------- ---------- ----------
Total Assets 12,750 290,182 25,618 45,728
---------- ---------- ---------- ----------
Liabilities:
Administrative Expenses Payable -- 192 -- --
Distributions Payable 4 90 8 14
Forfeiture Credits -- -- -- --
---------- ---------- ---------- ----------
Total Liabilities 4 282 8 14
---------- ---------- ---------- ----------
Net Assets $ 12,746 $ 289,900 $ 25,610 $ 45,714
========== ========== ========== ==========
<CAPTION>
(Dollars in Thousands) December 31, 1996
------------------------------------------------
Fund Information
------------------------------------------------
International
Stock Company
Equity Stock Loan
Fund Fund Fund
---------- ---------- ----------
<S> <C> <C> <C>
Assets:
Investments at Fair Market Value:
State Street Income and Growth Fund,
Cost $6,870 - 675,788 Units $ -- $ -- $ --
State Street Moderate Asset Allocation
Fund, Cost $30,809 - 2,951,057 Units -- -- --
State Street Life Solutions Growth A,
Cost $11,639 - 949,240 Units -- -- --
Collective Daily Stock Index Fund, Cost
$231,718 - 16,369,098 Units -- -- --
Twentieth Century Investors Income
Ultra Fund, Cost $25,304 - 909,122 Units -- -- --
Franklin Strategic Series Small Cap
Growth Fund, Cost $42,224 - 2,188,282 Units -- -- --
Templeton Foreign Fund, Cost
$15,889 - 1,639,127 Units 16,981 -- --
Common Stock of The Goodyear Tire & Rubber
Company, Cost $206,299 - 8,448,371 Shares -- 434,035 --
Short-Term Investments -- 6,664 --
Promissory Notes -- -- 80,906
---------- ---------- ----------
16,981 440,699 80,906
---------- ---------- ----------
Investments at Contract Value:
Guaranteed Investment Contracts -- -- --
---------- ---------- ----------
Receivables:
Employee Contributions -- -- --
Employer Contributions -- 83 --
Transfers 33 (222) 144
Accrued Interest and Dividends 26 708 124
Pending Security Sales -- 2,481 --
---------- ---------- ----------
59 3,050 268
---------- ---------- ----------
Total Assets 17,040 443,749 81,174
---------- ---------- ----------
Liabilities:
Administrative Expenses Payable -- 255 --
Distributions Payable 5 138 --
Forfeiture Credits -- -- --
---------- ---------- ----------
Total Liabilities 5 393 --
---------- ---------- ----------
Net Assets $ 17,035 $ 443,356 $ 81,174
========== ========== ==========
</TABLE>
11
<PAGE> 15
THE GOODYEAR TIRE & RUBBER COMPANY
----------------------------------
MASTER TRUST
------------
STATEMENT OF NET ASSETS, WITH FUND INFORMATION
----------------------------------------------
<TABLE>
<CAPTION>
(Dollars in Thousands) December 31, 1995
----------------------------------------------------------------------------
Fund Information
----------------------------------------------------------------------------
Company Fixed Stock
Stock Interest Equity Balanced Loan
Total Fund Fund Fund Fund Fund
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments at Fair Market Value:
Common Stock of The Goodyear Tire
& Rubber Company, Cost
$220,265 - 9,196,871 Shares 417,309 417,309 -- -- -- --
State Street Moderate Asset
Allocation Fund, Cost
$18,164 - 1,815,442 Units 18,809 -- -- -- 18,809 --
Collective Daily Stock
Index Fund, Cost
$202,938 - 14,834,407 Units 213,765 -- -- 213,765 -- --
Short-Term Investments 61,352 1,199 60,153 -- -- --
Promissory Notes 43,952 -- -- -- -- 43,952
---------- ---------- ---------- ---------- ---------- ----------
755,187 418,508 60,153 213,765 18,809 43,952
---------- ---------- ---------- ---------- ---------- ----------
Investments at Contract Value:
Guaranteed Investment Contracts 601,512 -- 601,512 -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Receivables:
Employee Contributions 6,344 -- 5,766 284 294 --
Employer Contributions 2,968 2,968 -- -- -- --
Transfers -- -- -- -- -- --
Loan Repayments -- -- 2,436 869 69 (3,374)
Accrued Interest and Dividends 267 9 258 -- -- --
Reimbursement for Expenses 22 22 -- -- -- --
Distribution Receivable 112 20 92 -- -- --
---------- ---------- ---------- ---------- ---------- ----------
9,713 3,019 8,552 1,153 363 (3,374)
---------- ---------- ---------- ---------- ---------- ----------
Total Assets 1,366,412 421,527 670,217 214,918 19,172 40,578
---------- ---------- ---------- ---------- ---------- ----------
Liabilities:
Distributions Payable -- -- -- -- -- --
Forfeiture Credits 41 41 -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Total Liabilities 41 41 -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Net Assets $1,366,371 $ 421,486 $ 670,217 $ 214,918 $ 19,172 $ 40,578
========== ========== ========== ========== ========== ==========
</TABLE>
12
<PAGE> 16
THE GOODYEAR TIRE & RUBBER COMPANY
----------------------------------
MASTER TRUST
------------
STATEMENT OF CHANGES IN NET ASSETS, WITH FUND INFORMATION
---------------------------------------------------------
<TABLE>
<CAPTION>
(Dollars in Thousands) For the Year Ended December 31, 1996
------------------------------------------------------------------------------------
Fund Information
------------------------------------------------------------------
Conservative Moderate Aggressive
Stable Asset Asset Asset
Value Allocation Allocation Allocation
Total Fund Fund Fund Fund
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Increase in Assets:
Contributions:
Employer $ 37,939 $ 306 $ -- $ -- $ --
Employee 113,952 68,429 666 4,966 1,628
----------- ----------- ----------- ----------- -----------
151,891 68,735 666 4,966 1,628
Interest and Dividend Income 55,195 38,334 7 32 10
Net Appreciation (Depreciation)
in Fair Market Value of Assets 117,457 246 516 3,807 1,165
----------- ----------- ----------- ----------- -----------
172,652 38,580 523 3,839 1,175
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries 63,857 35,330 171 1,039 289
Administrative Expenses 1,694 1,077 -- -- --
----------- ----------- ----------- ----------- -----------
65,551 36,407 171 1,039 289
Transfers:
Transfers Between Plans -- -- -- -- --
Transfers Between Funds -- (48,299) 6,349 8,568 10,270
Loan Transfers To or From Plan -- 1 -- (1) --
Loans to Participants -- (45,793) (153) (1,258) (413)
Loan Repayments:
Principal -- 16,441 133 671 312
Interest -- 3,923 25 140 63
----------- ----------- ----------- ----------- -----------
-- (73,727) 6,354 8,120 10,232
----------- ----------- ----------- ----------- -----------
Increase (Decrease) in Assets During Year 258,992 (2,819) 7,372 15,886 12,746
Net Assets at Beginning of Year 1,366,371 670,217 -- 19,172 --
----------- ----------- ----------- ----------- -----------
Net Assets at End of Year $ 1,625,363 $ 667,398 $ 7,372 $ 35,058 $ 12,746
=========== =========== =========== =========== ===========
<CAPTION>
(Dollars in Thousands) For the Year Ended December 31, 1996
------------------------------------------------------------------------------------------
Fund Information
-----------------------------------------------------------------------------------------
S&P 500 Large Small International
Equity Capitalization Capitalization Stock Company
Index Equity Equity Equity Stock Loan
Fund Fund Fund Fund Fund Fund
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Increase in Assets:
Contributions:
Employer $ -- $ -- $ -- $ -- $ 37,633 $ --
Employee 30,665 2,793 3,231 1,574 -- --
----------- ----------- ----------- ----------- ----------- -----------
30,665 2,793 3,231 1,574 37,633 --
Interest and Dividend Income 448 25 182 434 9,806 5,917
Net Appreciation (Depreciation)
in Fair Market Value of Assets 49,982 1,726 5,074 1,371 53,570 --
----------- ----------- ----------- ----------- ----------- -----------
50,430 1,751 5,256 1,805 63,376 5,917
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries 7,217 284 487 230 18,810 --
Administrative Expenses 389 -- -- -- 228 --
----------- ----------- ----------- ----------- ----------- -----------
7,606 284 487 230 19,038 --
Transfers:
Transfers Between Plans -- -- -- -- -- --
Transfers Between Funds 9,530 21,622 38,117 13,943 (60,100) --
Loan Transfers To or From Plan (1) 1 -- -- -- --
Loans to Participants (15,397) (977) (1,161) (350) -- 65,502
Loan Repayments:
Principal 6,001 589 633 247 -- (25,027)
Interest 1,359 115 125 46 -- (5,796)
----------- ----------- ----------- ----------- ----------- -----------
1,492 21,350 37,714 13,886 (60,100) 34,679
----------- ----------- ----------- ----------- ----------- -----------
Increase (Decrease) in Assets
During Year 74,981 25,610 45,714 17,035 21,871 40,596
Net Assets at Beginning of Year 214,919 -- -- -- 421,485 40,578
----------- ----------- ----------- ----------- ----------- -----------
Net Assets at End of Year $ 289,900 $ 25,610 $ 45,714 $ 17,035 $ 443,356 $ 81,174
=========== =========== =========== =========== =========== ===========
</TABLE>
13
<PAGE> 17
THE GOODYEAR TIRE & RUBBER COMPANY
----------------------------------
MASTER TRUST
------------
STATEMENT OF CHANGES IN NET ASSETS, WITH FUND INFORMATION
---------------------------------------------------------
<TABLE>
<CAPTION>
(Dollars in Thousands) For the Year Ended December 31, 1995
-------------------------------------------------------------------------------
Fund Information
-------------------------------------------------------------------------------
Company Fixed Stock
Stock Interest Equity Balanced Loan
Total Fund Fund Fund Fund Fund
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Increase in Assets:
Contributions:
Employer $ 37,870 $ 37,537 $ 333 $ -- $ -- $ --
Employee 112,285 -- 78,683 29,646 3,956 --
---------- ---------- ---------- ---------- ---------- ----------
150,155 37,537 79,016 29,646 3,956 --
Interest and Dividend Income 53,593 8,556 42,610 239 104 2,084
Net Appreciation in Fair Market
Value of Assets 160,228 102,944 130 53,965 3,189 --
---------- ---------- ---------- ---------- ---------- ----------
213,821 111,500 42,740 54,204 3,293 2,084
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries 52,215 14,330 31,014 5,487 422 962
Administrative Expenses 73 -- -- -- 73 --
---------- ---------- ---------- ---------- ---------- ----------
52,288 14,330 31,014 5,487 495 962
Transfers:
Transfers Between Plans 1 2 (42) 42 -- (1)
Transfers Between Funds -- -- (2,867) 3,190 (323) --
Transfers To or From Plan -- -- 294 (145) (149) --
Loans to Participants -- -- (17,337) (4,489) (274) 22,100
Loan Repayments:
Principal -- -- 13,110 4,138 356 (17,604)
Interest -- -- 1,690 510 45 (2,245)
---------- ---------- ---------- ---------- ---------- ----------
1 2 (5,152) 3,246 (345) 2,250
---------- ---------- ---------- ---------- ---------- ----------
Increase in Assets During Year 311,689 134,709 85,590 81,609 6,409 3,372
Net Assets at Beginning of Year 1,054,682 286,777 584,627 133,309 12,763 37,206
---------- ---------- ---------- ---------- ---------- ----------
Net Assets at End of Year $1,366,371 $ 421,486 $ 670,217 $ 214,918 $ 19,172 $ 40,578
========== ========== ========== ========== ========== ==========
</TABLE>
14
<PAGE> 1
EXHIBIT 23
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (No. 33-65185) of The Goodyear Tire & Rubber Company of
our report dated June 25, 1997 appearing at page 2 of Annex A of this Form 11-K.
/s/ Price Waterhouse LLP
PRICE WATERHOUSE LLP
Cleveland, Ohio
June 26, 1997
