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SCOTT TECHNOLOGIES INC
11-K, 2000-06-27
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

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FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

(Mark One):

[X]		ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED, EFFECTIVE OCTOBER 7, 1996].
For the fiscal year ended December 31, 1999
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 0-8591

    A. Full title of the plan and the address of the plan, if different from that of the issuer named below: Scott Technologies, Inc. 401(k) Savings Plan for Hourly Paid Employees.

    B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: Scott Technologies, Inc., One Chagrin Highlands, 2000 Auburn Drive, Suite 400, Beachwood, Ohio 44124.

SCOTT TECHNOLOGIES, INC.
401(k) SAVINGS PLAN FOR HOURLY PAID EMPLOYEES

FINANCIAL STATEMENTS
AS OF DECEMBER 31, 1999 AND 1998
TOGETHER WITH REPORT OF
INDEPENDENT PUBLIC ACCOUNTANTS

REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

To the Trustees of the
Scott Technologies, Inc.
401(k) Savings Plan for Hourly Paid Employees:

We have audited the accompanying statements of net assets available for plan benefits of the Scott Technologies, Inc. 401(k) Savings Plan for Hourly Paid Employees (the Plan) as of December 31, 1999 and 1998, and the related statement of changes in net assets available for plan benefits for the year ended December 31, 1999. These financial statements and schedule referred to below are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements and 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 audit provides 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, 1999 and 1998, and the changes in its net assets available for plan benefits for the year ended December 31, 1999 in conformity with generally accepted accounting principles 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 (Exhibit 1) as of December 31, 1999 is presented for purposes of additional analysis and is 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.

/s/ Arthur Andersen LLP

Cleveland, Ohio,
  May 11, 2000.

SCOTT TECHNOLOGIES, INC.

401(k) SAVINGS PLAN FOR HOURLY PAID EMPLOYEES

DECEMBER 31, 1999 AND 1998

INDEX

SCOTT TECHNOLOGIES, INC.

401(k) SAVINGS PLAN FOR HOURLY PAID EMPLOYEES

STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS

AS OF DECEMBER 31, 1999 AND 1998

				1999			1998
ASSETS:
	Cash and cash equivalents			$	—		$	516,783
	Investments at market value				1,867,369			809,114
	Employee contribution receivable				5,424			—
	Employer contribution receivable				2,068			—
	Accrued interest income				266			176
		NET ASSETS AVAILABLE FOR PLAN BENEFITS		$	1,875,127		$	1,326,073

The accompanying notes to financial statements are an integral part of these statements.

SCOTT TECHNOLOGIES, INC.

401(k) SAVINGS PLAN FOR HOURLY PAID EMPLOYEES

STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS

FOR THE YEAR ENDED DECEMBER 31, 1999

ADDITIONS:
	Contributions-
		Employee		$	323,646
		Employer			107,675
	Net appreciation in fair value of investments (see Note 5)				184,037
	Net investment income				57,201
	Other				14,318
		Total Additions			686,877
DEDUCTIONS:
	Benefits paid to participants				137,823
		Net additions			549,054
NET ASSETS AVAILABLE FOR PLAN BENEFITS, beginning of year					1,326,073
NET ASSETS AVAILABLE FOR PLAN BENEFITS, end of year				$	1,875,127

The accompanying notes to financial statements are an integral part of this statement.

SCOTT TECHNOLOGIES, INC.

401(k) SAVINGS PLAN FOR HOURLY PAID EMPLOYEES

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 1999 AND 1998

1. SUMMARY OF THE PLAN:

The Scott Technologies, Inc. 401(k) Savings Plan for Hourly Paid Employees (the Plan) was established on January 1, 1996, to provide retirement benefits to hourly paid employees (and their beneficiaries) hired after December 31, 1984 of certain participating divisions and subsidiaries of Scott Technologies, Inc. (the Company). The Plan was amended and restated in 1998 to allow for an increase in employee contribution percentage, employer matching contributions and new investment options. The Plan is a defined contribution pension plan.

The Plan provides that the Company shall have the right to amend or terminate the Plan at any time. Upon termination of the Plan, the assets then remaining in the Plan shall be allocated and distributed to participants in accordance with the terms and provisions of Section 4044 of ERISA, as amended.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Basis of Accounting

The accompanying statements of net assets available for plan benefits and statement of changes in net assets available for plan benefits are prepared on the accrual basis of accounting.

Net unrealized gains and realized gains on sale of investments were calculated based on the fair value of the investments at the beginning of the year or purchase price, if acquired in the current year. The amounts are included in net appreciation in fair value of investments in the accompanying statement of changes in net assets available for plan benefits.

Accounting Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management 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 revenues and expenses during the reporting period. Actual results could differ from those estimates.

Reclassifications

Certain reclassifications have been made to prior year financial statements to conform to current year presentation.

New Authoritative Pronouncements

The Accounting Standards Executive Committee issued Statement of Position 99-3, "Accounting for and Reporting of Certain Defined Contribution Plan Investments and other Disclosure Matters" (SOP 99-3), which eliminates the requirement for a defined contribution plan to disclose participant-directed investment programs. As required by SOP 99-3, the Plan adopted SOP 99-3 for the 1999 financial statements and reclassified certain amounts in the 1998 financial statements to eliminate the participant-directed fund investment program disclosures.

Administrative Expenses

All costs and expenses incurred in administering the Plan are paid by the Plan and are included as a reduction of investment income.

Contributions

The Plan provides that participants may elect to defer up to 15% of their annual compensation paid to them by the Company as a contribution. Such elected contributions are limited in any calendar year to a maximum as shall be prescribed by the Secretary of the Treasury. The Company matches 100% of the first 1% of each participant's elective contribution and then 25% of the next 4% of participant contribution. In addition, the Plan provides for transfer contributions to the Plan which constitute a rollover from another qualified plan on behalf of an eligible employee.

Participant Directed Investments

Participants direct their contributions in 5% increments between the twelve funds and the Company stock fund. However, a participant's investment in the Company stock fund may not exceed, in aggregate, 25% of the participant's total contribution percentage.

Participants may also choose one of three Lifestyle options in which allocations are automatically selected for the participants. The Conservative Lifestyle option automatically becomes the investment choice for any Plan participant who does not submit an enrollment form, which includes a valid investment direction. The Plan offers an internet web page and a telephone voice response system, both of which allow participants to change allocations and contribution percentages on a daily basis.

Net Investment Income

Net investment income includes dividend and interest income earned from investments during the year, as well as interest earned from participant loans.

Vesting Requirements

Participant contributions and transfer contributions are fully vested when deposited into the Plan. Employer matching contributions vest to participants according to the following:

Employer discretionary contributions are fully vested at five years of service. For vesting purposes, the Plan provides that an employee shall be credited with one year of service for each plan year during which they have met the criteria of continuous service, as defined in the Plan document.

Distributions and Forfeitures

Upon termination from the Plan, a participant, or in the case of death, a participant's beneficiary will be entitled to receive the vested portion of the participant's account as a single lump-sum payment. For participants who are terminated, the nonvested account balance is forfeited, and the forfeitures are used to offset plan expenses and the employer matching contribution. If a participant retires, becomes disabled or dies while still employed, the entire balance in his or her account will be fully vested.

The Plan also allows for hardship withdrawals. Under certain hardship circumstances, as defined in the Plan document, a participant may withdraw up to 100% of the participant's before tax contributions.

Retirement

The Plan provides that the accrued benefit of a participant is nonforfeitable if the Company on or after the normal retirement date employs such participant. Each participant who ceases to be employed by the Company for any reason, other than death, on or after the normal retirement date shall be entitled to receive a normal retirement benefit. The normal retirement benefit is equal to the participant's accrued benefit as of the date of the distribution.

Participant Loans

The Plan allows participants to take loans from their account balance. A participant can borrow up to the lesser of 50% of their vested account balance or $50,000. The minimum loan requested amount is $1,000. Participants can have one outstanding loan at a time and loans can be requested for any reason. The interest rate is Prime rate plus one percentage point. Outstanding loans were $68,291 and $12,286 at December 31, 1999 and 1998, respectively, and are included in investments in the accompanying financial statements.

3. DISTRIBUTIONS TO PARTICIPANTS:

Distributions due to participants who have reached retirement age, withdrawn, or otherwise separated from the Plan amounted to $0 and $10,853 at December 31, 1999 and 1998, respectively.

4. TAX STATUS:

The Internal Revenue Service has determined and informed the Company by a letter dated November 18, 1996, that the Plan and related trust are designed in accordance with applicable sections of the Internal Revenue Code (IRC). The Plan has been amended and restated since receiving the determination letter. However, the Plan administration and the Plan's tax counsel believe that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC.

5. INVESTMENTS:

The following investments represent 5% or more of the Plan's net assets:

During 1999, the Plan's investments appreciated in value by $184,037 (including realized and unrealized gains and losses) as follows:

6. CHANGE OF TRUSTEE:

During 1999, all Plan assets were transferred from the Wilmington Trust Co. to the Chicago Trust Co. Accordingly, at December 31, 1998, many of the fund accounts held cash, as the investments were disposed of on December 30, 1998, to facilitate the transfer of assets to the new trustee.

EXHIBIT 1

SCOTT TECHNOLOGIES, INC.
401(k) SAVINGS PLAN FOR HOURLY PAID EMPLOYEES
ITEM 4i—SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1999
EMPLOYER IDENTIFICATION NUMBER: 52-1297376
PLAN NUMBER: 023

Identity of Issue and Description			Market Value
Chicago Trust Safety of Principle Fund			$	65,590
Pimco Total Return Fund				83,020
Chicago Trust Balanced Fund				133,508
Chicago Trust Growth & Income Fund				174,162
Oppenheimer Opportunity Fund				111,674
M & C Growth Fund				16,612
MFS Capital Opportunity Fund				154,660
Small Cap Blend Fund				47,534
GAM International Fund				63,695
Scott Technologies, Inc. Common Stock Fund				458,366
Conservative Lifestyle Fund				79,327
Moderate Lifestyle Fund				281,075
Aggressive Lifestyle Fund				129,490
Liquidity Fund				365
* Participant Loan Fund (interest rates ranged from 8.75% to 9.5% during 1999)				68,291
			$	1,867,369

The accompanying notes to financial statements are an integral part of this exhibit.

*

denotes party-in-interest

The 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.

SCOTT TECHNOLOGIES, INC.
401(k) SAVINGS PLAN FOR HOURLY PAID EMPLOYEES

By: Scott Technologies, Inc. (Plan Administrator)

/s/ Debra L. Kackley   


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  Debra L. Kackley,
  Vice President, General
  Counsel and Secretary

Date: June 27, 2000

EXHIBIT INDEX

23.1		Consent of Arthur Andersen LLP

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REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
SCOTT TECHNOLOGIES, INC.
401(k) SAVINGS PLAN FOR HOURLY PAID EMPLOYEES
DECEMBER 31, 1999 AND 1998
INDEX
SCOTT TECHNOLOGIES, INC. 401(k) SAVINGS PLAN FOR HOURLY PAID EMPLOYEES ITEM 4i—SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AS OF DECEMBER 31, 1999 EMPLOYER IDENTIFICATION NUMBER: 52-1297376 PLAN NUMBER: 023
EXHIBIT INDEX

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