<PAGE>
FORM 10-K/A
AMENDMENT TO FORM 10-K ANNUAL REPORT
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
AMENDMENT NO. 1
[ X ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1994
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period ended___________________________
Commission File Number 1-7211
Ionics, Incorporated
(Exact name of registrant as specified in it charter)
Massachusetts 04-2068530
State or other jurisdiction of (I.R.S. Employer
incorporation or organization Identification Number)
65 Grove Street, Watertown, Massachusetts 02172
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 617-926-2500
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of each exchange on which registered
Common Stock, $1 par value New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act:
None
(Title of Class)
<PAGE>
The undersigned registrant hereby amends the following items,
financial statements, exhibits or other portions of its Annual Report
on Form 10-K for the fiscal year ended December 31, 1994 as set forth
in the pages attached hereto:
1. Item 14(a) 3. of Part IV of said report on Form 10-K is amended to
list Form 11-K, Annual Report of the Ionics Section 401(k) Stock
Savings Plan for the year ended December 31, 1994, as Exhibit 13(b)
thereto. The Annual Report of the Ionics Section 401(k) Stock Savings
Plan on Form 11-K for the year ended December 31, 1994 is hereby filed
pursuant to rule 15d-21 and General Instruction F to Form 10-K as an
Exhibit to said Annual Report on Form 10-K.
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this amendment to be signed on
its behalf by the undersigned, thereunto duly authorized.
IONICS, INCORPORATED
(Registrant)
Date: June 26, 1995 By /s/Stephen Korn
Stephen Korn
Vice President and
General Counsel
<PAGE>
PART IV
Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND
REPORTS ON FORM 8-K
(a) 1. Financial Statements
See Index to Financial Statements and Financial Statement
Schedules on page IV-7. The Financial Statement Schedules are
filed as part of this Annual Report on Form 10-K.
2. Financial Statement Schedules
See Index to Financial Statements and Financial Statement
Schedules on page IV-7.
<TABLE>
3. Exhibits
<CAPTION>
Exhibit Page
No. Description No.
<S> <C> <C>
3.0 Articles of Organization and By-Laws
3.1 Restated Articles of Organization (filed *
as Exhibit 3(a) to Form 10-K for year
ended December 31, 1986).
3.1(a) Amendment to the Restated Articles of *
Organization (filed as Exhibit 3(b) to
Form 10-K for year ended December 31, 1987).
3.1(b) Amendment to Restated Articles of *
Organization (filed as Exhibit 3.1(b) to
Registration Statement No. 33-38290 on
Form S-2 effective January 24, 1991).
3.2 By-Laws, as amended (filed as Exhibit 19 to *
Form 10-Q for the quarter ended September 30,
1989).
4.0 Instruments defining the rights of security holders,
including indentures
4.1 Agreement for a loan payable by a consolidated **
subsidiary to a bank in Australia in the principal
amount of 725,000 Australian dollars guaranteed
by Registrant, and related documents.
4.2 Rights Agreement, dated as of December 22, 1987, *
as amended and restated as of August 15, 1989,
between Registrant and The First National Bank
of Boston (filed as Exhibit 1 to Registrant's
Current Report on Form 8-K dated August 30, 1989).
</TABLE>
IV-1
<PAGE>
<TABLE>
<S> <C> <C>
4.3 Indenture, dated as of December 22, 1987, between *
Registrant and The First National Bank of Boston,
relating to Rights Agreement (filed as Exhibit 2
to Registrant's Current Report on Form 8-K dated
December 22, 1987).
4.4 Form of Common Stock Certificate (filed as Exhibit *
4.10 to Registrant's Annual Report on Form 10-K
for the year ended December 31, 1990).
10. Material Contracts
10.1 1979 Stock Option Plan, as amended through *
February 17, 1994 (filed as Exhibit 10.1 to
Registrant's Annual Report on Form 10-K for
the year ended December 31, 1993).
10.2 1986 Stock Option Plan for Non-Employee Directors, *
as amended through February 18, 1992 (filed as
Exhibit 10.2 to Registrant's Annual Report on
Form 10-K for the year ended December 31, 1991).
10.3 Amended and Restated Credit Agreement between *
Registrant and The First National Bank of Boston
dated as of December 31, 1992 (filed as Exhibit
10.3 to Registrant's Annual Report on Form 10-K
for the year ended December 31, 1992).
10.4 Operating Agreement dated as of September 27, *
1989 between Registrant and Aqua Cool Enter-
prises, Inc. (filed as Exhibit 10.4 to
Registrant's Annual Report on Form 10-K for the
year ended December 31, 1989).
10.5 Term Lease Master Agreement dated as of *
September 27, 1989 between Registrant and
Aqua Cool Enterprises, Inc. (filed as Exhibit
10.5 to Registrant's Annual Report on Form 10-K
for the year ended December 31, 1989).
10.6 Option Agreement dated as of September 27, 1989 *
among Registrant, Aqua Cool Enterprises, Inc.
and the other parties named therein (filed as
Exhibit 10.6 to Registrant's registration
statement on Form S-2, No. 33-38290,
effective January 24, 1991).
10.7 Agreement for Privatization of Water Supplies *
dated as of September 18, 1990 between the
Company and the City of Santa Barbara,
California (filed as Exhibit 10.7 to
Registrant's registration statement on Form S-2,
No. 33-38290, effective January 24, 1991).
</TABLE>
IV-2
<PAGE>
<TABLE>
<S> <S> <C> <C>
10.8 Amendment No. 1, dated as of January 3, 1992, to *
Agreement for Privatization of Water Supplies
dated as of September 18, 1990 between the Company
and the City of Santa Barbara, California (filed as
Exhibit 10.8 to Registrant's annual report on
Form 10-K for the year ended December 31, 1991).
10.9 Amendment No. 2, dated as of January 19, 1993, *
to Agreement for Privatization of Water Supplies
dated as of September 18, 1990 between the Company
and the City of Santa Barbara, California (filed as
Exhibit 10.9 to the Registrant's annual report on
Form 10-K for the year ended December 31, 1992).
10.10 Amendment No. 3, dated June 28, 1994, to Agreement *
for Privatization of Water Supplies dated as of
September 18, 1990 between the Company and the City
of Santa Barbara, California (filed electronically
as Exhibit 10.1 to the Registrant's Form 10-Q for
the period ended June 30, 1994).
10.11 Asset Purchase Agreement Among the Company, *
Resources Conservation Company, Resources
Conservation Co. International and Halliburton
NUS Corporation dated December 30, 1993 (filed as
Exhibit 2 to Registrant's current report on
Form 8-K dated February 7, 1994 and filed
electronically on the same date).
10.12 1994 Restricted Stock Plan.
11. Statement re Computation of Earnings Per Share.
13.(a) Annual Report to Stockholders of the Registrant for
the year ended December 31, 1994 (only pages 17
through 32 and the inside back cover constitute an
exhibit to this report).
13.(b) Form 11-K Annual Report of the Ionics Section 401(k)
Stock Savings Plan for the year ended December 31, 1994.
22. Subsidiaries of the Registrant.
24. Consents
24.1 Consent of Coopers & Lybrand L.L.P. to incorporation
by reference of that firm's report dated
February 22, 1995, which is included on page 31 of
the Registrant's Annual Report to Stockholders
for the year ended December 31, 1994.
25. Power of Attorney.
________________________________
<PAGE>
<FN>
* incorporated herein by reference
** copies of which will be filed by Registrant with the
Securities and Exchange Commission upon its request
</TABLE>
IV-3
<PAGE>
Exhibit No. 13(b) to Annual Report on Form 10-K
of Ionics, Incorporated for the year ended December 31, 1994
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(Mark One)
[X] Annual report pursuant to Section 15(d) of the Securities
Exchange Act of 1934 (Fee Required)
For the fiscal year ended ________December 31, 1994 _________
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 1-7211
A. Full title of the plan and the address of the plan, if
different from that of the issuer named below:
Ionics Section 401(k) Stock Savings Plan
B. Name of issuer of the securities held pursuant to the plan
and the address of its principal executive office:
IONICS, INCORPORATED
65 Grove Street
Watertown, Massachusetts 02172
<PAGE>
IONICS, INCORPORATED
SECTION 401(k) STOCK SAVINGS PLAN
INDEX OF FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
For the years ended December 31, 1994 and 1993
________
Page(s)
Report of Independent Accountants 2
Financial Statements:
Statements of Financial Condition with Fund
Information at December 31, 1994 and 1993 3-4
Statements of Income and Changes in Plan Equity
with Fund Information for the years ended
December 31, 1994 and 1993 5-6
Notes to Financial Statements 7-10
Supplemental Schedules:
Schedule of Assets Held for Investment Purposes, at
December 31, 1994 11
Schedule of Reportable Transactions
for the year ended December 31, 1994 12
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Administrators of the Ionics Section 401(k) Stock Savings Plan:
We have audited the accompanying statements of financial condition
of the Ionics Section 401(k) Stock Savings Plan as of December 31, 1994 and
1993 and the related statements of income and changes in plan equity 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 financial condition of the Ionics
Section 401(k) Stock Savings Plan as of December 31, 1994 and 1993, and the
income and changes in plan equity 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
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 Employment Retirement Income Security
Act of 1974. The Fund Information in the statements of financial condition
and the related statements of income and changes in plan equity is
presented for purposes of additional analysis rather than to present the
financial condition and income and changes in plan equity 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/Coopers & Lybrand L.L.P.
Boston, Massachusetts
May 26, 1995
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<PAGE>
<TABLE>
IONICS SECTION 401(k) STOCK SAVINGS PLAN
STATEMENTS OF FINANCIAL CONDITION WITH FUND INFORMATION
<CAPTION>
IONICS,INC ASSET BT PARTIC-
COMMON PURITAN MANAGER CONTRAFUND PYRAMID IPANT CONDUIT
STOCK FUND FUND FUND FUND GIC FUND LOANS ACCOUNT TOTAL
DECEMBER 31, 1994
-----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
INVESTMENTS, AT MARKET (SEE NOTES 2 & 6)
IONICS, INCORPORATED COMMON STOCK:
138,691 SHARES @ $62.75 PER SHARE $8,702,860 $ 8,702,860
FIDELITY INVESTMENTS:
PURITAN FUND:
58620.372 SHARES @ $14.81 PER SHARE $868,168 868,168
ASSET MANAGER FUND:
14,771.251 SHARES @ $13.83 PER SHARE $204,286 204,286
CONTRAFUND FUND:
19,295.65 SHARES @ $30.28 PER SHARE $584,272 584,272
BT PYRAMID GIC FUND $788,297 788,297
CASH AND CASH EQUIVALENTS 241 $90,768 91,009
ACCRUED INCOME 65 65
AMOUNTS RECEIVABLE FROM
IONICS, INCORPORATED AND
PLAN PARTICIPANTS 77,926 77,926
AMOUNTS PAYABLE TO
PLAN PARTICIPANTS (14,994) (14,994)
LOANS RECEIVABLE FROM
PLAN PARTICIPANTS $235,321 235,321
$8,703,166 $868,168 $204,286 $584,272 $788,297 $235,321 $153,700 $11,537,210
========== ======== ======== ========= ======== ======== ======== ===========
LIABILITIES AND PLAN EQUITY:
PLAN EQUITY $8,703,166 $868,168 $204,286 $584,272 $788,297 $235,321 $153,700 $11,537,210
========== ======== ======== ========= ======== ========= ======== ===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
</TABLE>
-3-
<PAGE>
<TABLE>
IONICS SECTION 401(k) STOCK SAVINGS PLAN
STATEMENTS OF FINANCIAL CONDITION WITH FUND INFORMATION
<CAPTION>
IONICS, INC. EQUITY CASH
COMMON INCOME RESERVES PURITAN
STOCK FUND FUND FUND FUND TOTAL
<S> <C> <C> <C> <C> <C>
DECEMBER 31, 1993
ASSETS:
INVESTMENTS, AT MARKET(SEE NOTE 2 & 6):
IONICS, INCORPORATED COMMON STOCK:
127,379 SHARES @ $49.625 PER SHARE $6,321,183 $6,321,183
FIDELITY INVESTMENTS:
EQUITY INCOME FUND:
29,736 SHARES @ $33.84 PER SHARE $1,006,251 1,006,251
CASH RESERVES:
242,898 SHARES @ $1.00 PER SHARE $ 242,898 242,898
PURITAN FUND:
43,122 SHARES @ $15.75 PER SHARE $679,171 679,171
CASH AND CASH EQUIVALENTS 60,767 11,852 3,489 9,464 85,572
ACCRUED INCOME 78 5 1 4 88
RECEIVABLE FROM IONICS, INCORPORATED
AND PLAN PARTICIPANTS 40,949 5,921 1,480 6,349 54,699
$6,422,977 $1,024,029 $247,868 $694,988 $8,389,862
LIABILITIES AND PLAN EQUITY:
PLAN EQUITY $6,422,977 $1,024,029 $247,868 $694,988 $8,389,862
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
</TABLE>
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<PAGE>
<TABLE>
IONICS SECTION 401(k) STOCK SAVINGS PLAN
STATEMENTS OF INCOME AND CHANGES IN PLAN EQUITY WITH FUND INFORMATION
<CAPTION>
IONICS,INC. EQUITY CASH ASSET BT PARTIC-
COMMON INCOME RESERVES PURITAN MANAGER PYRAMID IPANT CONDUIT
STOCK FUND FUND FUND FUND FUND CONTRAFUND GIC FUND LOANS ACCOUNT TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
YEAR ENDED DECEMBER 31, 1994
PLAN EQUITY - BEGINNING
OF YEAR $6,422,977 $1,024,029 $247,868 $694,988 - - - - - $8,389,862
NET INVESTMENT INCOME,
PRINCIPALLY INTEREST
AND DIVIDENDS 927 8,048 2,681 27,347 3,317 - 28,966 6,932 3,482 81,700
NET APPRECIATION (DEPREC-
IATION) IN THE FAIR VALUE
OF INVESTMENTS 1,819,681 (27,132) - (17,184) (6,110) 10,239 - - - 1,779,494
CONTRIBUTIONS:
PARTICIPANTS 213,552 55,981 9,595 57,457 - - - - 1,208,544 1,545,129
IONICS, INCORPORATED 106,777 - - - - - - - 325,998 432,775
FORFEITURES USED TO
REDUCE COMPANY'S
CONTRIBUTIONS (29,279) - - - - - - - (27,814) (57,093)
LOAN REPAYMENTS - - - - - - - (28,939) 28,939 -
TRANSFERS 241,802 (1,056,080) (258,212) 113,345 207,079 574,033 760,767 257,328 (840,062) -
WITHDRAWALS BY AND
DISTRIBUTIONS TO
PARTICIPANTS (73,271) (4,846) (1,932) (7,785) - - (1,436) - (545,387 (634,657)
NET CHANGES IN
PLAN EQUITY 2,280,189 (1,024,029) (247,868) 173,180 204,286 584,272 788,297 235,321 153,700 3,147,348
PLAN EQUITY -
END OF YEAR $8,703,166 - - $868,168 $204,286 $584,272 $788,297 $235,321 $153,700 $11,537,210
=========== ========== ======== ======== ======== ========= ======== ======== ========= ===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
</TABLE>
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<PAGE>
<TABLE>
IONICS SECTION 401(k) STOCK SAVINGS PLAN
STATEMENTS OF INCOME AND CHANGES IN PLAN EQUITY WITH FUND INFORMATION
<CAPTION>
IONICS, INC. EQUITY CASH
COMMON INCOME RESERVES PURITAN
STOCK FUND FUND FUND FUND TOTAL
<S> <C> <C> <C> <C> <C>
YEAR ENDED DECEMBER 31, 1993
PLAN EQUITY-BEGINNING OF YEAR $7,924,284 $ 765,421 $277,237 $473,938 $9,440,880
NET INVESTMENT INCOME, PRINCIPALLY
INTEREST AND DIVIDENDS 2,167 32,080 8,234 25,554 68,035
NET APPRECIATION(DEPRECIATION)
IN THE FAIR VALUE OF INVESTMENTS (2,043,967) 134,633 - 78,509 (1,830,825)
CONTRIBUTIONS:PARTICIPANTS 613,976 145,575 40,637 122,116 922,304
IONICS, INCORPORATED 306,987 - - - 306,987
FORFEITURES USED TO REDUCE
COMPANY'S CONTRIBUTIONS - - - - -
TRANSFERS - 19,418 (67,884) 48,466 -
WITHDRAWALS BY AND
DISTRIBUTIONS TO PARTICIPANTS (380,470) (73,098) (10,356) (53,595) (517,519)
NET CHANGES IN PLAN EQUITY (1,501,307) 258,608 (29,369) 221,050 (1,051,018)
PLAN EQUITY-END OF YEAR $6,422,977 $1,024,029 $247,868 $694,988 $8,389,862
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
</TABLE>
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<PAGE>
IONICS SECTION 401(k) STOCK SAVINGS PLAN
Notes to Financial Statements
Note 1: The Plan and Its Provisions
The Ionics Section 401(k) Stock Savings Plan (the "Plan") became effective
January 1, 1986. Effective May 1, 1994, the Plan was amended to provide a
broader range of investment selections for plan participants and the
opportunity to change investment elections on a quarterly basis. Other
amendments to the Plan were also adopted, including provisions to permit
participants to borrow from their accounts. In addition, the Plan trustee
was changed from the Bank of Boston to the PNC Bank, New England.
Funds
Prior to the May 1, 1994 amendment, the following investments were
available to participants::
a. Ionics, Incorporated Common Stock Fund - This fund invests
directed contributions solely in common stock of the Company.
b. Fidelity Equity Income Fund - This mutual fund maintains a
broadly-based diversified investment portfolio of stocks, bonds
and convertible securities with its primary objective of producing
current income and capital appreciation.
c. Fidelity Cash Reserves - This mutual fund is essentially a money
market fund which invests principally in prime commercial paper,
high-grade corporate obligations, U.S. Government obligations and
Certificates of Deposit issued by major banks.
d. Fidelity Puritan Fund - This mutual fund maintains a broadly based
conservatively managed diversified investment portfolio which is
primarily income oriented with a secondary emphasis on growth.
Its portfolio consists principally of high yielding common and
preferred stocks and corporate bonds.
The May 1, 1994 amendment changed the investment options by eliminating
the Fidelity Equity Income Fund and the Fidelity Cash Reserves and adding
the following options:
a. Fidelity Asset Manager Fund - This mutual fund maintains an
investment portfolio of stocks, bonds and short-term instruments
of U.S. and foreign issuers, and has a primary objective of high
total return with reduced risk over the long term.
b. Fidelity Contrafund - This mutual fund invests primarily in common
stocks and securities convertible into common stocks, and has
capital appreciation as its investment objective.
-7-
<PAGE>
c. BT Pyramid GIC Fund - This fund, administered by The Bankers Trust
Company, invests primarily in Guaranteed Investment Contracts and
Bank Investment Contracts and Bankers Trust Commingled short-term
investment funds, and has as its objectives safety of principal,
stability, superior yields and a predictable annual return. The
fund sets an estimated range of return on an annual basis, but
because results can be affected by economic or market conditions,
it does not guarantee the rate.
All cash transactions, including contributions, fund purchases, fund
liquidations, loans, distributions, etc are made through a conduit account,
which is an interest bearing cash account with the PNC Bank, New England.
Participant Contributions
Employees who meet certain length of service requirements may elect to
become participants in the Plan and contribute, on a pre-tax basis, from 1%
to 12% of their compensation as defined by the Plan. The annual amounts so
contributed by employees are subject to certain federal income tax
limitations.
Company Contributions
The terms and conditions of the Plan provide for the Company to
contribute 50% of the first 6% an employee elects to invest in common stock
of the Company (subject to certain limitations). The maximum annual amount
that the Company may contribute on behalf of employees is currently
$450,000, and that limit is set by the Board of Directors of the Company.
Non-vested Company contributions may, subject to certain restrictions, be
forfeited upon withdrawal of the employee from the Plan and be used as a
credit to reduce future Company contributions. No forfeited shares are
included in the investment of the Ionics, Incorporated Common Stock Fund at
December 31, 1994 and 1,150 forfeited shares with a market value of
approximately $57,000 were included at December 31, 1993.
Investments
Contributions made by employees to the Plan may be used to purchase
either common stock of the Company or may be directed to be invested in any
of the available funds (see preceding "Funds"). Matching Company
contributions under the Plan are invested solely in common stock of the
Company.
The Plan presents in the statement of income and changes in plan equity
the net appreciation(depreciation) in the fair value of its investments
which consists of realized gains or losses and the unrealized
appreciation(depreciation) of these investments.
Vesting
All participant contributions are 100% vested when made. Company
-8-
<PAGE>
matching contributions are vested in increasing percentages based on the
years of service of the individual employee, from 33 1/3% after
two years to 100% after four years.
Plan Expenses
The Plan provides that all expenses of the Plan and its administration
shall be paid by the Company.
Withdrawals
A participant can make a hardship withdrawal of their own
contributions, subject to Internal Revenue Service restrictions. A
participant may withdraw the entire vested amount due to their own
contributions after attaining age 59 1/2.
Loans
A participant can borrow money from their vested account subject to
certain rules including a minimum amount of $1,000 and a maximum amount not
to exceed the lesser of 50% of the participant's total vested account
balance or $50,000.
Note 2: Basis of Presentation and Significant Accounting Policies
The financial statements are presented in conformity with generally
accepted accounting principles.
Investments
Investment of the Plan in Ionics, Incorporated common stock is stated
at market, market being the last sale price on December 31, 1994 of Ionics,
Incorporated common stock as reported on the New York Stock Exchange.
Investments in the Plan of the three (3) Fidelity Funds and the BT Pyramid
GIC Fund are stated at the Net Asset Value of the funds reported as of
December 31, 1994.
<TABLE>
The following is a summary of the Investments in the funds at December
31, 1994 and 1993, respectively:
<CAPTION>
Market Value Cost
Fund 1994 1993 1994 1993
<S> <C> <C> <C> <C>
Ionics, Incorporated
Common Stock $8,702,860 $6,321,183 $3,993,545 $3,174,341
Fidelity Funds:
Equity Income - 1,006,251 809,176
Cash Reserves - 242,898 242,898
Puritan 868,168 679,171 879,599 619,726
Asset Manager 204,286 - 212,900 -
Contrafund 584,272 - 575,294 -
BT Pyramid GIC Fund 788,297 - 788,297 -
-9-
</TABLE>
<PAGE>
Note 3: Taxes
The United States Treasury Department issued a letter on April 15,
1987 indicating that the original Plan was considered to be exempt from
federal income taxes under provisions of Section 501(a). The amended Plan
has been submitted for a determination letter.
Note 4: Plan Termination
Although it has not expressed any intent to do so, the Company has the
right under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of ERISA. In the event of
Plan termination, participants will become 100 percent vested in their
accounts.
Note 5: Distributions Payable
In accordance with generally accepted accounting principles, the Plan
does not recognize as a liability, in the statement of financial
condition, amounts allocated to participants who have withdrawn from the
Plan as of year end, but for which disbursement of related funds has not
been made by year end. At December 31, 1994 and 1993, $298,949 and
$164,052, respectively of distributions payable were included in the
assets listed on the statement of financial condition rather than recorded
as a liability.
Note 6: Subsequent Events
The investment in Ionics, Incorporated Common Stock does not reflect a
2-for-1 stock split effected by a 100% stock dividend paid on January 6,
1995.
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<PAGE>
<TABLE>
ATTACHMENT TO FORM 5500
ITEM 27A
EIN: 04-2068530
PN: 003
<CAPTION>
IONICS, INCORPORATED
SECTION 401(k) STOCK SAVINGS PLAN
ITEM 27A
SCHEDULE OF ASSETS HELD
FOR INVESTMENT PURPOSES
December 31, 1994
Security Description Shares Cost Value
<S> <C> <C> <C>
Cash and Cash Equivalents - $ 91,009 $ 91,009
Ionics, Incorporated
Common Stock 138,691 3,993,545 8,702,860
Fidelity Investments
Puritan Fund 58,620 879,599 868,168
Asset Manager Fund 14,771 212,900 204,286
Contrafund 19,296 575,294 584,272
BT Pyramid GIC Fund - 788,297 788,297
Participant Loans
(Rate of Interest 8.75% to 10.0%) - - 235,321
Total Funds Invested 231,378 $6,540,644 $11,474,213
</TABLE>
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<PAGE>
<TABLE>
ATTACHMENT TO FORM 5500
ITEM 27D
EIN: 04-2068530
PN: 003
IONICS, INCORPORTED
SECTION 401(k) STOCK SAVINGS PLAN
ITEM 27D
SCHEDULE OF REPORTABLE TRANSACTIONS
for the year ended December 31, 1994
<CAPTION>
a. Type of b. Identity of c. Description d. Purchase f. Cost g. Net gain
Transaction Party Involved of Asset Price Cost e. Proceeds of Asset ( Loss)
<S> <C> <C> <C> <C> <C> <C>
INDIVIDUAL TRANSACTIONS
Purchase Bankers Trust BT Pyramid GIC Fund $ 775,521
Sale Fidelity Investments 32,483 shares of Equity
Income Fund $1,039,120 900,860 138,260
SERIES OF TRANSACTIONS
Purchase Fidelity Investments 1,534 shares of Equity
Income Fund 51,988
Purchase Fidelity Investments 22,683 shares of
Contrafund 676,640
Purchase Company Stock 22,543 shares of Ionics,
Inc. Common Stock 1,090,868
Purchase Bankers Trust BT Pyramid GIC Fund 1,085,314
Sale Fidelity Investments 3,387 shares of
Contrafund 102,607 101,346 1,261
Sale Company Stock 10,757 shares of Ionics,
Inc. Common Stock 517,406 260,199 257,207
Sale Bankers Trust BT Pyramid GIC Fund 324,547 324,547 -
</TABLE>
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<PAGE>
SIGNATURES
Ionics Section 401(k) Stock Savings Plan. Pursuant to the requirements of
the Securities Exchange 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.
IONICS SECTION 401(k)
STOCK SAVINGS PLAN
Date: June 26, 1995 By /s/Marianne Manzon Winsser
Marianne Manzon Winsser
Administrator
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<PAGE>
EXHIBIT 1
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the registration
statement of the Ionics Section 401(k) Stock Savings Plan on Form S-8
(Registration No. 33-2092) of our report dated May 26, 1995 on our
audits of the financial statements of the Ionics Section 401(k) Stock
Savings Plan as of December 31, 1994, which report is included in this
Annual Report on Form 11-K of the Plan which is being filed as Exhibit
13(b) to the Annual Report on Form 10-K of Ionics, Incorporated for
the year ended December 31, 1994.
/s/Coopers & Lybrand L.L.P.
Boston, Massachusetts
June 23, 1995
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