<PAGE>
HARVARD INDUSTRIES, INC.
HARVARD CAPITAL ACCUMULATION PLAN
FINANCIAL STATEMENTS AND SCHEDULES
AS OF DECEMBER 31, 1999 AND 1998
EMPLOYER IDENTIFICATION NUMBER 21-0715310
TOGETHER WITH AUDITORS' REPORT
<PAGE>
INDEX
Page(s)
Report of Independent Public Accountants: 1
FINANCIAL STATEMENTS:
Statements of Net Assets Available for Benefits as of
December 31, 1999 and 1998 2
Statement of Changes in Net Assets Available for Benefits for the
Year Ended December 31, 1999 3
Notes to Financial Statements 4-8
SUPPLEMENTAL SCHEDULES*:
Schedule of Assets Held for Investment Purposes
for the Year Ended December 31, 1999 9
* Other schedules required by Section 2520.103-10 of the Department of Labor's
Rules and Regulations to Reporting and Disclosure under ERISA have been
omitted because they are not applicable.
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Board of Directors of
Harvard Industries, Inc. Harvard Capital Accumulation Plan:
We have audited the accompanying statements of net assets available for benefits
of the Harvard Industries, Inc. Harvard Capital Accumulation Plan (the "Plan")
as of December 31, 1999 and 1998 and the related statement of changes in net
assets available for benefits for the year ended December 31, 1999. These
financial statements and the schedule referred to below are the responsibility
of the Plan's management. Our responsibility is to express an opinion on these
financial statements and the schedule based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the net assets available for benefits of the Plan as of
December 31, 1999 and 1998, and the changes in net assets available for benefits
for the year ended December 31, 1999, in conformity with accounting principles
generally accepted in the United States.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule of Assets Held
for Investment Purposes is presented for the purpose of additional analysis and
not a required part of the basic financial statements but is 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 supplemental schedule has been subjected to the auditing procedures
applied in the audit 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.
Roseland, New Jersey
June 27, 2000
<PAGE>
HARVARD INDUSTRIES, INC.
HARVARD CAPITAL ACCUMULATION PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 1999 AND 1998
1999 1998
------------ -----------
INVESTMENTS, at contract value - (Notes 2 & 3) $ 2,836,056 $ 4,005,507
------------ -----------
INVESTMENTS, at fair value (Note 1) 45,023,339 59,402,208
------------ -----------
Total investments 47,859,395 63,407,715
------------ -----------
CONTRIBUTIONS RECEIVABLE:
Employer's 76,565 225,865
Employees' 153,155 295,397
------------ -----------
229,720 521,262
------------ -----------
NET ASSETS AVAILABLE FOR BENEFITS $48,089,115 $63,928,977
=========== ===========
The accompanying notes to financial statements are an integral part of these
financial statements.
2
<PAGE>
HARVARD INDUSTRIES, INC.
HARVARD CAPITAL ACCUMULATION PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1999
ADDITIONS:
Investment income-
Interest and dividends $ 2,658,733
Interest income, participant loans 25,385
Net appreciation in fair value of investments 3,011,826
------------
Total investment income 5,695,944
------------
Contributions:
Employer's 1,877,330
Employees' 3,882,357
------------
Total contributions 5,759,687
------------
Total additions 11,455,631
------------
DEDUCTIONS:
Payment of benefits 8,669,178
Administrative expenses and other 73,019
Transfer of assets (Note 1) 18,553,296
------------
Total deductions 27,295,493
------------
Net decrease (15,839,862)
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 63,928,977
------------
End of year $48,089,115
============
The accompanying notes to financial statements are an integral part of this
statement.
3
<PAGE>
HARVARD INDUSTRIES INC.
HARVARD CAPITAL ACCUMULATION PLAN
NOTES TO FINANCIAL STATEMENTS
1. DESCRIPTION OF PLAN
The following description of the Harvard Industries, Inc. Harvard Capital
Accumulation Plan (the "Plan") is provided for general information purposes
only. Participants should refer to the Plan document for more complete
information.
General
The Plan is a defined contribution plan subject to the provisions of the
Employee Retirement Income Security Act of 1974 ("ERISA"). In general, an
employee of Harvard Industries, Inc. and its U.S. subsidiaries (the "Company"),
whose terms and conditions of employment are not determined by a collective
bargaining agreement, is eligible to participate in the Plan on the first day of
the month after 6 months of service have been completed. Participation in the
Plan is voluntary.
Effective September 30, 1999, the Company sold substantially all of the assets
and assigned certain liabilities of its Kingston-Warren subsidiary to a
subsidiary of Hutchinson S.A. On this date, participant's accounts in the Plan
for employees of the Company's Kingston-Warren subsidiary were transferred, in
whole, to a plan of Hutchinson S.A.
Contributions
Participants may contribute from 2 percent to 18 percent of their pretax annual
compensation as defined by the Plan, in increments of one percentage point. The
amount of the Company's matching contribution is equal to 100 percent of that
portion of a participant's contribution which does not exceed 3 percent of the
participant's compensation and 50 percent of that portion of a participant's
contribution which exceeds 3 percent but is not in excess of 5 percent of the
participant's compensation. The matching contribution made on behalf of each
participant begins upon the participant obtaining credit for 1,000 hours of
service.
Participant Accounts
A separate account is maintained for each type of contribution by or for the
participant and contributions are allocated among the investment options as
directed by the participant. Plan earnings are allocated and credited daily
based on the balance of each participant's account, as defined in the plan
document. Each participant is charged with an allocation of administrative
expenses on a quarterly basis.
Vesting
Participants are immediately vested in their contributions, earnings thereon and
the Company's matching contributions.
Investment Options
Upon enrollment in the Plan, a participant may direct employee contributions
in any of the following investment options-
Vanguard 500 Index Fund: Seeks to provide long-term growth of capital and
income from dividends by holding all of the 500 stocks that make up the
unmanaged Standard & Poor's 500 Composite Stock Price Index, a widely
recognized benchmark of U.S. stock market performance.
4
<PAGE>
HARVARD INDUSTRIES INC.
HARVARD CAPITAL ACCUMULATION PLAN
NOTES TO FINANCIAL STATEMENTS
Vanguard Asset Allocation Fund: Seeks to provide long-term growth of capital
and income by investing in common stocks, long-term U.S. Treasury bonds, and
money market instruments. The mix of assets changes from time to time,
depending on which mix appears to offer the best combination of expected
returns and risk.
Vanguard Federal Money Market Fund: Seeks to provide high income and a
stable share price of $1 by investing in short-term securities that are
backed by the full faith and credit of the U.S. government or by an agency
of the government.
Vanguard Growth Index Fund: Seeks to provide long-term growth of capital by
holding all of the stocks in the unmanaged Standard & Poor's/BARRA Growth
Index in approximately the same proportions as those stocks represent in the
index.
Vanguard International Growth Fund: Seeks to provide long-term growth of
capital by investing in stocks of high-quality, seasoned companies based
outside the United States. Stocks are selected from more than 15 countries.
Vanguard Pacific Stock Index Fund: Seeks to provide long-term growth of
capital by attempting to match the performance of the unmanaged Morgan
Stanley Capital International Pacific Free Index, which is made up of stocks
from companies in Japan (a significant majority), Australia, New Zealand and
Singapore.
Vanguard Small-Cap Index Fund: Seeks to provide long-term growth of capital
by investing in a sample of stocks in the Russell 2000 Index, an unmanaged
index of smaller companies.
Vanguard Wellington Fund: Seeks to provide income and long-term growth of
capital without undue risk to capital by investing about 65% of its assets in
stocks and the remaining 35% in bonds.
Vanguard Retirement Savings Trust: Seeks stability of principal and a high
level of current income consistent with a two- to three-year average
maturity. The trust is a tax-exempt collective trust invested primarily in
investment contracts issued by insurance companies and commercial banks, and
similar types of fixed-principal investments. The trust intends to maintain a
constant net asset value of $1.00 per share.
Harvard Industries Common Stock Fund: Seeks to provide the potential for
long-term growth through increases in the value of the stock and reinvestment
of its dividends. Effective June 15, 1997, this investment option is no
longer available. Subsequent to December 31, 1998, this Fund was liquidated.
Fixed Fund: Seeks to provide a high level of income and a stable unit value
of $1 in most cases through investment contracts with insurance companies.
Payment of Benefits
Upon retirement, disability, death, or other termination of employment,
participants or their beneficiaries may elect to receive the balance in their
account in a lump sum payment. There is no provision for periodic distributions.
5
<PAGE>
HARVARD INDUSTRIES INC.
HARVARD CAPITAL ACCUMULATION PLAN
NOTES TO FINANCIAL STATEMENTS
Administrative Expenses and Other
The Company may, at its discretion, pay the expenses of the Plan. Administrative
expenses of the Plan in the amount of $73,019 and $79,531 for the years ended
December 31, 1999 and 1998, respectively, were allocated and charged to the
participants' accounts on a quarterly basis.
Participant Loans
Plan participants may borrow from their accounts a minimum of $1,000 with a
maximum loan amount equal to the lesser of $50,000 or one-half of their vested
account balance. Loan terms range from one to five years or for the purchase of
a primary residence, a reasonable period of time not to exceed fifteen years. A
participant loan is secured by the participant's account and is anticipated to
bear a fixed interest rate. Principal and interest are paid through payroll
withholding according to the terms of the loan agreement. A participant may not
have more than one loan outstanding at any time.
2. SUMMARY OF ACCOUNTING POLICIES
Basis of Accounting
The financial statements of the Plan are prepared under the accrual basis of
accounting.
Use of Estimates
The preparation of the Plan's financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and disclosures of
contingent assets at the date of the financial statements and the reported
amounts of changes in assets during the reporting period. Actual results could
differ from those estimates.
Investment Valuation and Income Recognition
The Fixed Fund is stated at contract value, which approximates fair value and
other investments are stated at fair value based upon quoted market price or net
asset value (redemption value).
Purchases and sales of securities are recorded on a trade date basis. Interest
income is recorded on the accrual basis. Dividends are recorded on the
ex-dividend date.
Payment of Benefits
Benefits are recorded when paid.
6
<PAGE>
HARVARD INDUSTRIES INC.
HARVARD CAPITAL ACCUMULATION PLAN
NOTES TO FINANCIAL STATEMENTS
New Accounting Standard
In September 1999, the AICPA issued SOP No.99-3, "Accounting for and Reporting
of Certain Defined Contribution Benefit Plan Investments and Other Disclosure
Matters." SOP No.99-3 eliminates the previous requirement for a defined
contribution plan to present investments by general type for participant -
directed investments in the statement of changes in net assets applicable at
participants' equity.
SOP No.99-3 is effective for financial statements for the plan years ending
after December 15, 1999. Earlier application is encouraged for fiscal years for
which annual financial statements have not been issued. The Plan has adopted SOP
No.99-3 as of January 1, 1999.
3. INVESTMENT
The following table presents investments that represent 5% or more of the
Plans net assets.
<TABLE>
<CAPTION>
1999 1998
---------- ----------
<S> <C> <C>
Vanguard 500 Index Fund, 143,549; 231,114 shares respectively 19,426,064 26,335,469
Vanguard Wellington Fund, 374,632; 462,644 shares respectively 10,474,713 13,578,605
Vanguard Retirement Savings Trust, 10,194,219; 14,296,659 shares respectively 10,194,219 14,296,659
Vanguard Federal Money Market Fund, 3,759,225; 4,274,781 shares respectively 3,759,225 4,274,781
Investment Contract With Insurance Company (Fixed Fund), 2,836,056; 4,005,507 shares respectively 2,836,056 4,005,507
</TABLE>
4. INVESTMENT CONTRACT WITH
INSURANCE COMPANY (FIXED FUND)
The Plan has entered into an investment contract with Aetna Life Insurance and
Annuity Company ("Aetna"). Aetna maintains the contributions in a pooled
separate account. The account is credited with earnings on the underlying
investments and charged for plan withdrawals and administrative expenses charged
by Aetna. The contract is included in the financial statements at contract
value, which represents contributions made under the contract, plus earnings,
less withdrawals and administrative expenses, because it is fully benefit
responsive. For example, participants may ordinarily direct the withdrawal or
transfer of all or a portion of their investment at contract value. There are no
reserves against contract value for credit risk of the contract issuer or
otherwise. The fair value of the investment contract at December 31, 1999 and
1998 approximates its contract value as reported to the Plan by Aetna. The
average yield was approximately 5.1 and 5.3 percent for 1999 and 1998,
respectively, and the crediting interest rate was approximately 5.1 percent for
1999. The crediting interest rate is based on an agreed-upon formula with the
issuer, but cannot be less than 3 percent.
5. TRUSTEE
Under the terms of a trust agreement between Vanguard Fiduciary Trust Company
(the "Trustee"), and the Plan, the Trustee manages the trust on behalf of the
Plan. The Trustee invests in various funds as designated by the participants and
maintains detailed records for each participant's account.
6. INCOME TAXES
The Internal Revenue Service has determined and informed the Company by a letter
dated March 17, 1999, that the Plan met the requirements of Section 401(a) of
the Internal Revenue Code and was exempt from federal income tax under Section
501(a) of the Code. The plan administrator and the Plan's tax counsel believe
that the Plan is currently designed and operated in compliance with the
applicable requirements of the Internal Revenue Code. Therefore, no provision
for income taxes has been included in the Plan's financial statements.
7. PARTIES-IN-INTEREST TRANSACTIONS
Certain plan investments are shares of mutual funds managed by The Vanguard
Group. The Vanguard Group is the trustee as defined in the Plan and, therefore,
these transactions qualify as exempt party-in-interest transactions. Fees paid
by the Plan for investment management services amounted to $73,019 and $79,531
for the years ended December 31, 1999 and 1998, respectively.
7
<PAGE>
HARVARD INDUSTRIES INC.
HARVARD CAPITAL ACCUMULATION PLAN
NOTES TO FINANCIAL STATEMENTS
8. PLAN TERMINATION
The Company anticipates continuing the Plan indefinitely, but reserves the right
to discontinue contributions at any time and to terminate the Plan at any time
subject to the provisions of ERISA.
8
<PAGE>
HARVARD INDUSTRIES, INC. SCHEDULE I
HARVARD CAPITAL ACCUMULATION PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
FOR THE YEAR ENDED DECEMBER 31, 1999
EMPLOYER IDENTIFICATION NUMBER 21-0715310
PLAN #021
<TABLE>
<CAPTION>
Current
Identity of Issue Description of Investment Value
------------------------------ ------------------------- -------
<S> <C> <C>
Investments, at contract value:
* Fixed Fund Unallocated Insurance
Contract $2,836,056
Investments, at fair value:
* Vanguard 500 Index Fund Registered Investment Co. 19,426,064
* Vanguard Asset Allocation Fund Registered Investment Co. 273,838
* Vanguard Federal Money Market Fund Registered Investment Co. 3,759,225
* Vanguard Growth Index Fund Registered Investment Co. 23,289
* Vanguard International Growth Index Fund Registered Investment Co. 126,576
* Vanguard Pacific Stock Index Fund Registered Investment Co. 5,004
* Vanguard Small-Cap Index Fund Registered Investment Co. 350,865
* Vanguard Wellington Fund Registered Investment Co. 10,474,713
* Vanguard Retirement Savings Trust Common/Collective Trust 10,194,219
* Harvard Industries Common Stock Fund Company Stock Fund 34
* Participant loans 8.25% - 10% 389,512
-----------
45,023,339
-----------
Total assets held for investment purposes $47,859,395
===========
</TABLE>
* Denotes party-in-interest
The accompanying notes to financial statements are an integral part of this
schedule.
9
<PAGE>
SIGNATURES
The Plan: Pursuant to the requirements of the Securities Exhchange Act of 1934,
the trustees (or other persons who administer the employee benefit plan) have
duly caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
HARVARD CAPITAL ACCUMULATION PLAN
HARVARD INDUSTRIES, INC.
PLAN ADMINISTRATOR
Date: June 28, 2000 By: /s/ Gerald G. Tighe
Name: Gerald G. Tighe
Title: Senior Vice President & General Counsel
10
<PAGE>
EXHIBIT INDEX
FILED AS PART OF THIS ANNUAL REPORT ON FORM 11-K
Exhibit No. Description Page No.
----------- ----------- --------
23.1 Consent of Arthur Andersen LLP dated June 28, 2000 19-20
11
