<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 [NO FEE REQUIRED]
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1997
COMMISSION FILE NUMBER 1-9037
A. Full title of the Plan and the address of the Plan, if different from that
of the issuer named below: The IT Corporation Retirement Plan.
B. Name of issuer of the securities held pursuant to the Plan and the address
of its principal executive office: International Technology Corporation,
2790 Mosside Boulevard, Monroeville, PA 15146.
<PAGE> 2
Audited Financial Statements
and Supplemental Schedules
The IT Corporation Retirement Plan
Years ended December 31, 1997 and 1996
with Report of Independent Auditors
<PAGE> 3
The IT Corporation Retirement Plan
Audited Financial Statements
and Supplemental Schedules
Years ended December 31, 1997 and 1996
CONTENTS
Report of Independent Auditors.........................................1
Audited Financial Statements
Statements of Net Assets Available for Benefits........................2
Statements of Changes in Net Assets Available for Benefits.............3
Notes to Financial Statements..........................................4
Supplemental Schedules
Item 27a--Schedule of Assets Held for Investment Purposes.............14
Item 27d--Schedule of Reportable Transactions.........................15
<PAGE> 4
Report of Independent Auditors
IT Corporation
as Plan Administrator of
The IT Corporation Retirement Plan
We have audited the accompanying statements of net assets available for benefits
of The IT Corporation Retirement Plan (the Plan) as of December 31, 1997 and
1996, and the related statements of changes in net assets available for benefits
for the years then ended. These financial statements are the responsibility of
the Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan at
December 31, 1997 and 1996, and the changes in its net assets available for
benefits for the years then ended, in conformity with generally accepted
accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental schedule of
assets held for investment purposes as of December 31, 1997, and schedule of
reportable transactions for the year then ended, are presented for purposes of
complying with the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974, and are
not a required part of the basic financial statements. The supplemental
schedules have been subjected to the auditing procedures applied in our 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.
Ernst & Young LLP
Pittsburgh, Pennsylvania
May 28, 1998
-1-
<PAGE> 5
The IT Corporation Retirement Plan
Statements of Net Assets Available for Benefits
<TABLE>
<CAPTION>
DECEMBER 31
1997 1996
---------------------------------
<S> <C> <C>
ASSETS
Investments, at fair value $105,679,016 $88,262,190
Receivables:
Employer contributions 2,310,561 1,643,637
Employee contributions 561,728 507,807
------------ -----------
2,872,289 2,151,444
------------ -----------
Net assets available for benefits $108,551,305 $90,413,634
============ ===========
</TABLE>
See accompanying notes.
-2-
<PAGE> 6
The IT Corporation Retirement Plan
Statements of Changes in Net Assets Available for Benefits
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
1997 1996
---------------------------------
<S> <C> <C>
Additions to net assets attributed to:
Investment income:
Interest and dividend income $ 6,356,791 $ 8,735,917
Net appreciation in market value of investments 11,942,887 403,261
------------ -----------
Net investment income 18,299,678 9,139,178
Contributions:
Employer contributions 3,582,958 3,608,665
Employee contributions 6,844,668 6,020,201
Transfers in 2,233,886 315
------------ -----------
Total additions 30,961,190 18,768,359
Deductions from net assets attributed to benefit
and withdrawal payments to participants 12,823,519 8,247,221
------------ -----------
Net increase in net assets available for benefits 18,137,671 10,521,138
Net assets available for benefits:
Beginning of year 90,413,634 79,892,496
------------ -----------
End of year $108,551,305 $90,413,634
============ ===========
</TABLE>
See accompanying notes.
-3-
<PAGE> 7
The IT Corporation Retirement Plan
Notes to Financial Statements
December 31, 1997
1. DESCRIPTION OF PLAN
The following description of The IT Corporation Retirement Plan (the Plan)
provides only general information. Participants should refer to the plan
agreement for a more complete description of the Plan's provisions.
GENERAL
The IT Corporation Retirement Plan is a defined contribution profit sharing plan
which covers substantially all employees of International Technology Corporation
(the Company). The Plan is subject to the provisions of the Employee Retirement
Income Security Act of 1974 (ERISA).
CONTRIBUTIONS
The Plan requires a minimum annual employee contribution of 3% of participants'
eligible compensation, and a maximum annual contribution of up to 15% of
eligible compensation. Additionally, the Company contributes up to 2% of
participants' eligible compensation by matching 50% of each participant's
contribution (up to 4% of eligible compensation) to the Plan.
In addition, the Company may, in its sole discretion, contribute a discretionary
amount determined by the Company's board of directors based on the financial
success of the Company. This amount is allocated to participants' accounts based
on the amount of compensation deferred by each participant. No discretionary
contributions were made by the Company for the years ended December 31, 1997 or
1996.
PARTICIPANT ACCOUNTS
Each participant elects a fund or a combination of funds for the investment of
their account. The income of the Plan, together with any gains in the value of
the investments, increases participants' accounts proportionately based on their
account balances to total account balances. Losses reduce participants' accounts
in the same manner. Forfeited balances of terminated participants' nonvested
accounts are used to reduce future company contributions and to pay
administrative expenses of the Plan.
-4-
<PAGE> 8
The IT Corporation Retirement Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF PLAN (CONTINUED)
VESTING
Employees are eligible to become participants of the Plan one year after their
hire date. Participants are immediately vested in their contributions plus
actual earnings thereon. Participants become vested in employer contributions at
the rate of 20% after two years of service and an additional 20% for each year
of service thereafter until participants are 100% vested after six years of
service.
INVESTMENT OPTIONS
Upon enrollment in the Plan, a participant may direct employer and employee
contributions in any of nine investment options, all of which are managed by
Fidelity Investments:
Asset Manager Fund--Invests in domestic and foreign stocks, bonds and
short-term instruments of the U.S. and foreign issuers.
Asset Manager Growth Fund--Invests in stocks, bonds and short-term
instruments.
Asset Manager Income Fund--Invests in bonds and short-term instruments and
a small amount of common stock.
Company Stock Fund--Invests primarily in the common stock of International
Technology Corporation. The remainder is held in cash or short-term
instruments.
Equity Income Fund--Invests in income-producing common and preferred stocks
and bonds.
Intermediate Bond Fund--Invests in corporate debt obligations and U.S.
Government or agencies obligations.
Magellan Fund--Invests in common stocks and securities convertible to
common stock issued by companies operating in the U.S. or abroad.
Overseas Fund--Invests in common stocks and debt instruments of foreign
business and governments.
-5-
<PAGE> 9
The IT Corporation Retirement Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF PLAN (CONTINUED)
INVESTMENT OPTIONS (CONTINUED)
Retirement Money Market Fund--Invests in high quality, U.S.
dollar-denominated money market instruments of U.S. and foreign issuers.
Participants may change their investment options on a daily basis.
PARTICIPANT NOTES RECEIVABLE
Participants may borrow from their fund accounts a minimum of $1,000 up to a
maximum of the lesser of $50,000 or 50% of their vested account balance. Loan
terms range from six months to three years. The loans are secured by the balance
in the participant's account and bear interest at rates between 9.75% and 10%.
Principal and interest is paid ratably through monthly payroll deductions.
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% vested in their accounts.
2. SUMMARY OF ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The accounting records of the Plan are maintained on the accrual basis.
-6-
<PAGE> 10
The IT Corporation Retirement Plan
Notes to Financial Statements (continued)
2. SUMMARY OF ACCOUNTING POLICIES (CONTINUED)
INVESTMENT VALUATION AND INCOME RECOGNITION
The Plan's investments are stated at fair value. Investments in mutual funds and
common stock are valued at quoted market prices on the last business day of the
plan year. The participant notes receivable are valued at cost, which
approximates fair value.
INVESTMENT TRANSACTIONS GAINS AND LOSSES
Purchases and sales of investments are reflected on the trade dates. Realized
gains and losses from investment transactions represent the difference between
the proceeds received and the weighted average cost of the securities sold.
Unrealized gains and losses on investments are measured by the change in the
difference between the market value of the investments held at the beginning and
end of the plan year. Cash dividends are recorded on the ex-dividend dates and
interest is recorded as earned on the accrual basis.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates that affect the
amounts reported in the financial statements and accompanying notes. Actual
results could differ from those estimates.
3. INCOME TAX STATUS
The Plan has received a determination letter from the Internal Revenue Service
dated June 27, 1996 stating that the Plan is qualified under Section 401(a) of
the Internal Revenue Code of 1986 (the Code) and that the trust, therefore, is
exempt from taxation. Once qualified, the Plan is required to operate in
conformity with the Code and ERISA to maintain its tax-exempt status. The Plan
has been amended subsequent to the issuance of the determination letter;
however, the administrator is not aware of any course of action or series of
events that have occurred that might adversely affect the Plan's qualified
status.
-7-
<PAGE> 11
The IT Corporation Retirement Plan
Notes to Financial Statements (continued)
4. INVESTMENTS
The fair value of individual investments that represent 5% or more of the Plan's
net assets is as follows:
<TABLE>
<CAPTION>
DECEMBER 31
1997 1996
-------------------------------
<S> <C> <C>
Equity Income Fund $30,652,302 $22,868,527
Intermediate Bond Fund 5,923,176 6,021,658
Magellan Fund 39,194,864 33,417,649
Retirement Money Market Fund 18,850,454 18,141,528
</TABLE>
-8-
<PAGE> 12
The IT Corporation Retirement Plan
Notes to Financial Statements (continued)
4. INVESTMENTS (CONTINUED)
The net assets available for benefits as of December 31, 1997 and 1996 for each
investment fund are as follows:
<TABLE>
<CAPTION>
DECEMBER 31, 1997 WITH FUND INFORMATION
------------------------------------------------------------------------------------
ASSET ASSET
ASSET MANAGER MANAGER COMPANY EQUITY INTERMEDIATE
MANAGER GROWTH INCOME STOCK INCOME BOND
FUND FUND FUND FUND FUND FUND
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair
value $1,045,857 $2,993,805 $444,825 $402,604 $30,652,302 $5,923,176
Participant notes
receivable -- -- -- -- -- --
------------------------------------------------------------------------------------
Total investments 1,045,857 2,993,805 444,825 402,604 30,652,302 5,923,176
------------------------------------------------------------------------------------
Receivables:
Employer's
contributions 33,287 97,242 11,623 11,738 524,674 106,442
Employees'
contributions 10,406 35,447 3,880 2,201 150,600 24,854
------------------------------------------------------------------------------------
Total receivables 43,693 132,689 15,503 13,939 675,274 131,296
------------------------------------------------------------------------------------
Net assets available
for benefits $1,089,550 $3,126,494 $460,328 $416,543 $31,327,576 $6,054,472
====================================================================================
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1997 WITH FUND INFORMATION
---------------------------------------------------------------------------
RETIREMENT
MONEY
MAGELLAN OVERSEAS MARKET LOAN
FUND FUND FUND FUND TOTAL
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair $39,194,864 $4,733,770 $18,850,454 $ -- $104,241,657
value
Participant notes
receivable -- -- -- 1,437,359 1,437,359
---------------------------------------------------------------------------
Total investments 39,194,864 4,733,770 18,850,454 1,437,359 105,679,016
---------------------------------------------------------------------------
Receivables:
Employer's
contributions 694,903 142,022 688,630 -- 2,310,561
Employees'
contributions 186,433 38,589 109,318 -- 561,728
---------------------------------------------------------------------------
Total receivables 881,336 180,611 797,948 -- 2,872,289
---------------------------------------------------------------------------
Net assets available
for benefits $40,076,200 $4,914,381 $19,648,402 $1,437,359 $108,551,305
===========================================================================
</TABLE>
-9-
<PAGE> 13
The IT Corporation Retirement Plan
Notes to Financial Statements (continued)
4. INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
DECEMBER 31, 1996 WITH FUND INFORMATION
-----------------------------------------------------------------------------------
ASSET ASSET
ASSET MANAGER MANAGER COMPANY EQUITY INTERMEDIATE
MANAGER GROWTH INCOME STOCK INCOME BOND
FUND FUND FUND FUND FUND FUND
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair $290,224 $1,299,593 $194,772 $371,249 $22,868,527 $6,021,658
value
Participant notes
receivable -- -- -- -- -- --
-----------------------------------------------------------------------------------
Total investments 290,224 1,299,593 194,772 371,249 22,868,527 6,021,658
-----------------------------------------------------------------------------------
Receivables:
Employer's
contributions 18,275 53,837 7,816 12,006 296,182 136,856
Employees'
contributions 4,621 15,590 1,930 2,945 125,479 30,976
-----------------------------------------------------------------------------------
Total receivables 22,896 69,427 9,746 14,951 421,661 167,832
-----------------------------------------------------------------------------------
Net assets available
for benefits $313,120 $1,369,020 $204,518 $386,200 $23,290,188 $6,189,490
===================================================================================
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1996 WITH FUND INFORMATION
-----------------------------------------------------------------------
RETIREMENT
MONEY
MAGELLAN OVERSEAS MARKET LOAN
FUND FUND FUND FUND TOTAL
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair $33,417,649 $4,285,942 $18,141,528 $ -- $86,891,142
value
Participant notes
receivable -- -- -- 1,371,048 1,371,048
-----------------------------------------------------------------------
Total investments 33,417,649 4,285,942 18,141,528 1,371,048 88,262,190
-----------------------------------------------------------------------
Receivables:
Employer's
contributions 757,711 143,011 217,943 - 1,643,637
Employees'
contributions 181,084 35,445 109,737 - 507,807
----------------------------------------------------------------------
Total receivables 938,795 178,456 327,680 - 2,151,444
----------------------------------------------------------------------
Net assets available
for benefits $34,356,444 $4,464,398 $18,469,208 $1,371,048 $90,413,634
======================================================================
</TABLE>
<PAGE> 14
The IT Corporation Retirement Plan
Notes to Financial Statements (continued)
4. INVESTMENTS (CONTINUED)
For the years ended December 31, 1997 and 1996, the changes in net assets
available for plan benefits of each investment fund are as follows:
<TABLE>
<CAPTION>
DECEMBER 31, 1997
--------------------------------------------------------------------------------------
ASSET ASSET
ASSET MANAGER MANAGER COMPANY EQUITY INTERMEDIATE
MANAGER GROWTH INCOME STOCK INCOME BOND
FUND FUND FUND FUND FUND FUND
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income:
Interest and dividends $ 87,712 $ 315,257 $ 27,884 $ 1,460 $ 1,716,831 $ 378,809
Net appreciation
(depreciation)
in market value
of investments 64,723 220,153 12,681 (38,564) 5,515,753 45,358
Contributions:
Employer 49,680 150,650 17,958 18,993 658,037 137,066
Employee 136,566 356,433 108,579 29,356 1,710,270 331,768
Transfers in 201,810 -- -- (50) 1,417,340 --
---------------------------------------------------------------------------------------
Total additions 540,491 1,042,493 167,102 11,195 11,018,231 893,001
Deductions from net assets
attributed to:
Benefit and withdrawal
payments 60,425 337,843 11,345 19,846 4,046,276 630,640
---------------------------------------------------------------------------------------
Increase (decrease)
prior to interfund
transfers 480,066 704,650 155,757 (8,651) 6,971,955 262,361
Interfund transfers
(net) 296,364 1,052,824 100,053 38,994 1,065,433 (397,379)
---------------------------------------------------------------------------------------
Net increase (decrease) 776,430 1,757,474 255,810 30,343 8,037,388 (135,018)
Net assets available
for benefits:
Beginning of year 313,120 1,369,020 204,518 386,200 23,290,188 6,189,490
---------------------------------------------------------------------------------------
End of year $1,089,550 $3,126,494 $460,328 $ 416,543 $31,327,576 $ 6,054,472
=======================================================================================
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1997
------------------------------------------------------------------------------------
RETIREMENT
MONEY
MAGELLAN OVERSEAS MARKET LOAN
FUND FUND FUND FUND TOTAL
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income:
Interest and dividends $ 2,576,723 $ 247,496 $ 1,004,619 $ -- $ 6,356,791
Net appreciation
(depreciation)
in market value
of investments 5,861,194 261,589 -- -- 11,942,887
Contributions:
Employer 973,530 204,504 1,372,540 -- 3,582,958
Employee 2,220,758 500,659 1,450,279 -- 6,844,668
Transfers in 574,931 -- 39,855 -- 2,233,886
------------------------------------------------------------------------------------
Total additions 12,207,136 1,214,248 3,867,293 -- 30,961,190
Deductions from net assets
attributed to:
Benefit and withdrawal
payments 3,812,541 696,269 2,923,122 285,212 12,823,519
------------------------------------------------------------------------------------
Increase (decrease)
prior to interfund
transfers 8,394,595 517,979 944,171 (285,212) 18,137,671
Interfund transfers
(net) (2,674,839) (67,996) 235,023 351,523 --
------------------------------------------------------------------------------------
Net increase (decrease) 5,719,756 449,983 1,179,194 66,311 18,137,671
Net assets available
for benefits:
Beginning of year 34,356,444 4,464,398 18,469,208 1,371,048 90,413,634
------------------------------------------------------------------------------------
End of year $ 40,076,200 $ 4,914,381 $19,648,402 $ 1,437,359 $108,551,305
====================================================================================
</TABLE>
-11-
<PAGE> 15
The IT Corporation Retirement Plan
Notes to Financial Statements (continued)
4. INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
DECEMBER 31, 1996
--------------------------------------------------------------------------------
ASSET ASSET
ASSET MANAGER MANAGER COMPANY EQUITY INTERMEDIATE
MANAGER GROWTH INCOME STOCK INCOME BOND
FUND FUND FUND FUND FUND FUND
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions to net
assets attributed to:
Investment income:
Interest and dividends $ 19,006 $ 103,271 $ 5,396 $ 438 $ 1,415,255 $ 440,716
Net appreciation
(depreciation) in
market value of
investments (831) 6,111 (79) (69,515) 2,333,378 (211,654)
Contributions:
Employer 23,349 69,065 9,952 15,858 438,171 159,205
Employee 34,533 109,419 34,097 28,794 1,334,840 399,875
Transfers in -- -- -- -- 305 --
---------------------------------------------------------------------------------
Total additions (deductions) 76,057 287,866 49,366 (24,425) 5,521,949 788,142
Deductions from net assets
attributed to:
Benefit and withdrawal
payments 12,125 40,729 4,265 2,874 1,682,896 785,201
---------------------------------------------------------------------------------
Increase (decrease)
prior to interfund
transfers 63,932 247,137 45,101 (27,299) 3,839,053 2,941
Interfund transfers (net) 247,372 1,120,806 159,102 413,499 3,339,222 (659,483)
---------------------------------------------------------------------------------
Net increase (decrease) 311,304 1,367,943 204,203 386,200 7,178,275 (656,542)
Net assets available for
benefits:
Beginning of year 1,816 1,077 315 -- 16,111,913 6,846,032
---------------------------------------------------------------------------------
End of year $ 313,120 $1,369,020 $ 204,518 $ 386,200 $23,290,188 $ 6,189,490
=================================================================================
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1996
------------------------------------------------------------------------
RETIREMENT
MONEY
MAGELLAN OVERSEAS MARKET LOAN
FUND FUND FUND FUND TOTAL
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions to net
assets attributed to:
Investment income:
Interest and dividends $ 5,554,604 $ 267,210 $ 930,021 $ -- $ 8,735,917
Net appreciation
(depreciation) in
market value of
investments (1,867,263) 213,114 -- -- 403,261
Contributions:
Employer 1,023,894 185,034 1,684,137 -- 3,608,665
Employee 2,339,139 434,732 1,304,772 -- 6,020,201
Transfers in -- -- 10 -- 315
------------------------------------------------------------------------
Total additions (deductions) 7,050,374 1,100,090 3,918,940 -- 18,768,359
Deductions from net assets
attributed to:
Benefit and withdrawal
payments 2,999,928 319,275 2,266,382 133,546 8,247,221
------------------------------------------------------------------------
Increase (decrease)
prior to interfund
transfers 4,050,446 780,815 1,652,558 (133,546) 10,521,138
Interfund transfers (net) (3,981,246) 462,579 (1,780,130) 678,279 --
------------------------------------------------------------------------
Net increase (decrease) 69,200 1,243,394 (127,572) 544,733 10,521,138
Net assets available for
benefits:
Beginning of year 34,287,244 3,221,004 18,596,780 826,315 79,892,496
------------------------------------------------------------------------
End of year $ 34,356,444 $4,464,398 $18,469,208 $1,371,048 $90,413,634
========================================================================
</TABLE>
-12-
<PAGE> 16
The IT Corporation Retirement Plan
Notes to Financial Statements (continued)
5. SUBSEQUENT EVENTS
Subsequent to December 31, 1997, approximately $9,372,000 of participant
accounts were transferred into the Plan, in connection with the Company's
acquisitions of Pacific Environmental Group, Inc. and Jellinek, Schwartz, and
Connolly, Inc. In addition, approximately $2,372,000 of participant accounts
were transferred out of the Plan in February 1998 in connection with the
Company's divestiture of its Wilmington, California remediation services
division.
In February 1998, the Company acquired OHM Corporation, a publicly-traded
provider of technology-based, on-site hazardous waste remediation services in
the United States. The Company plans to merge the participant accounts from OHM
Corporation's Retirement Savings Plan into The IT Corporation Retirement Plan
effective January 1, 1999. Net assets available for benefits in the OHM
Corporation Retirement Savings Plan approximated $51,233,000 as of December 31,
1997 (unaudited).
6. YEAR 2000 (UNAUDITED)
The Company has initiated formal communications with its significant service
provider (plan trustee and recordkeeper) to determine the extent to which the
Plan's systems or operations are vulnerable to the service provider's failure to
resolve its own Year 2000 issues. In addition, the Company completed a review of
its internal systems that impact the processing of employee benefits. IT
Corporation was notified by the vendor that provides its internal systems that
their systems are Year 2000 compliant.
The Plan's service provider has indicated that it is presently taking steps to
ensure that the Plan's systems and operations will be Year 2000 compliant.
-13-
<PAGE> 17
SUPPLEMENTAL SCHEDULES
<PAGE> 18
The IT Corporation Retirement Plan
EIN #94-1259053 Plan #002
Item 27a--Schedule of Assets Held for Investment Purposes
December 31, 1997
<TABLE>
<CAPTION>
NUMBER CURRENT
DESCRIPTION OF INVESTMENT OF SHARES COST VALUE
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Fidelity Funds:
- ---------------
*Fidelity Asset Manager Fund 56,995 $ 1,001,509 $ 1,045,857
*Fidelity Asset Manager Growth Fund 162,002 2,885,458 2,993,805
*Fidelity Asset Manager Income Fund 36,521 435,114 444,825
*Fidelity Equity Income Fund 584,856 22,266,572 30,652,302
*Fidelity Intermediate Bond Fund 582,417 5,955,938 5,923,176
*Fidelity Magellan Fund 411,408 31,209,617 39,194,864
*Fidelity Overseas Fund 145,475 4,329,333 4,733,770
*Fidelity Retirement Money Market Fund 18,850,454 18,850,454 18,850,454
*Company Stock Fund 59,481 497,741 402,604
Participant loans (9.75% to 10%) -- -- 1,437,359
---------------------------------
Total assets held for investment purposes $87,431,736 $105,679,016
=================================
*Party-in-interest
</TABLE>
-14-
<PAGE> 19
The IT Corporation Retirement Plan
EIN #94-1259053 Plan #002
Item 27d--Schedule of Reportable Transactions
Year ended December 31, 1997
<TABLE>
<CAPTION>
CURRENT VALUE
OF ASSET ON
IDENTITY OF PARTY TRANSACTION
AND ASSET DESCRIPTION PURCHASES SALES COST OF ASSET DATE NET GAIN
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Category (iii)--Series of transactions in excess of 5% of plan assets:
- ----------------------------------------------------------------------
Fidelity Equity Income Fund $12,293,753 $ -- $12,293,753 $12,293,753 $ --
Fidelity Equity Income Fund -- 10,025,730 8,324,755 10,025,730 1,700,975
Fidelity Magellan Fund 10,531,562 -- 10,531,562 10,531,562 --
Fidelity Magellan Fund -- 10,615,541 9,187,001 10,615,541 1,428,540
Fidelity Overseas Fund 5,861,475 -- 5,861,475 5,861,475 --
Fidelity Overseas Fund -- 5,675,236 5,478,740 5,675,236 196,496
Fidelity Retirement Money Market Fund 12,716,674 -- 12,716,674 12,716,674 --
Fidelity Retirement Money Market Fund -- 12,007,747 12,007,747 12,007,747 --
</TABLE>
There were no category (i), (ii) or (iv) reportable transactions during the
year ended 1997.
-15-
<PAGE> 20
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Plan's sponsors have duly caused this annual report to be signed on
their behalf by the undersigned thereunto duly authorized.
The IT Corporation Retirement Plan
Date: June 29, 1998
/s/ ANTHONY J. DELUCA
-------------------------------------
Anthony J. DeLuca
Chief Executive Officer and President
-16-
<PAGE> 1
Exhibit 23
Consent of Independent Auditors
We consent to the incorporation by reference in the Registration Statement (Form
S-8 No. 333-00651) pertaining to the IT Corporation Retirement Plan of our
report dated May 28, 1998, with respect to the financial statements and
schedules of the IT Corporation Retirement Plan included in this Annual Report
(Form 11-K) for the year ended December 31, 1997.
Ernst & Young LLP
Pittsburgh, Pennsylvania
June 25, 1998
-17-
