SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES AND EXCHANGE ACT OF 1934
For the Fiscal Year ended December 31, 1993
OWENS-CORNING FIBERGLAS CORPORATION
SAVINGS AND DEFERRAL INVESTMENT PLAN
OWENS-CORNING FIBERGLAS CORPORATION
Fiberglas Tower
Toledo, Ohio 43659
Commission File No. 1-3660
- - ---------------------------------------------------------------
REQUIRED INFORMATION
(a) Financial Statements.
1. Report of Independent Public Accountants
2. Statements of Participants' Equity - as of December
31, 1993 and 1992
3. Statements of Changes in Participants' Equity - for
the years ended December 31, 1993, 1992 and 1991
4. Notes to Financial Statements
(b) Exhibit.
Consent of Arthur Andersen & Co.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the trustees (or other persons who administer the Plan) have
duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
OWENS-CORNING FIBERGLAS CORPORATION
SAVINGS AND DEFERRAL INVESTMENT PLAN
By /s/ Michael I. Miller
---------------------
Michael I. Miller
Chairman, Investment Review Committee
DATED: June 30, 1994<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Plan Administrator,
Owens-Corning Fiberglas Corporation
Savings and Deferral Investment Plan:
We have audited the accompanying statements of participants' equity
of the OWENS-CORNING FIBERGLAS CORPORATION SAVINGS AND DEFERRAL
PLAN as of December 31, 1993 and 1992, and the related statements
of changes in participants' equity for each of the three years in
the period ended December 31, 1993. These financial statements are
the responsibility of the plan administrator. 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 audits 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 the plan administrator, 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 participants' equity of the
Owens-Corning Fiberglas Corporation Savings and Deferral Investment
Plan as of December 31, 1993 and 1992, and the changes in its
participants' equity for each of the three years in the period
ended December 31, 1993, in conformity with generally accepted
accounting principles.
Toledo, Ohio,
June 9, 1994.
PAGE
<PAGE>
<TABLE>
OWENS-CORNING FIBERGLAS CORPORATION
SAVINGS AND DEFERRAL INVESTMENT PLAN
STATEMENTS OF PARTICIPANTS' EQUITY
AS OF DECEMBER 31, 1993 AND 1992
1 9 9 3
--------------------------------------------------------------------
Loans to
Company Managed Indexed Fixed Partici-
Stock Equity Equity Income pants
Fund Fund Fund Fund (Note 3) Total
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments (Notes 1, 2, 4 and 5):
Short-term investments $ 847,100 $ - $ - $ - $ - $ 847,100
Owens-Corning Fiberglas Corporation
common stock, 5,079,001 shares at
$44.375 per share (cost $21,068,063)
(Note 8) 225,380,669 - - - - 225,380,669
Investment in master trust collective
funds - 51,493,798 9,290,932 42,028,759 - 102,813,489
Loans to participants (Note 3) - - - - 8,205,726 8,205,726
Accrued interest on loans to participants
(Note 3) - - - - 44,743 44,743
Due from Owens-Corning Fiberglas
Corporation (Note 1) 435,956 5,307 900 (5,021) - 437,142
Accrued interest income 450 - - - - 450
------------ ----------- ----------- ----------- ----------- ------------
Total assets $226,664,175 $51,499,105 $ 9,291,832 $42,023,738 $ 8,250,469 $337,729,319
============ =========== =========== =========== =========== ============
LIABILITIES (Notes 1 and 6):
Accrued expense $ 799,390 $ 2,287 $ 2,075 $ 4,641 $ - $ 808,393
----------- ----------- ----------- ----------- ----------- ------------
PARTICIPANTS' EQUITY (Notes 1 and 6) 225,864,785 51,496,818 9,289,757 42,019,097 8,250,469 336,920,926
----------- ----------- ----------- ----------- ----------- ------------
Total liabilities and
participants' equity $226,664,175 $51,499,105 $ 9,291,832 $42,023,738 $ 8,250,469 $337,729,319
=========== =========== =========== =========== =========== ============
The accompanying notes are an integral part of these statements.
</TABLE>
PAGE
<PAGE>
<TABLE>
OWENS-CORNING FIBERGLAS CORPORATION
SAVINGS AND DEFERRAL INVESTMENT PLAN
STATEMENTS OF PARTICIPANTS' EQUITY
AS OF DECEMBER 31, 1993 AND 1992
(Continued)
1 9 9 2
-----------------------------------------------------------------------
Loans to
Company Managed Indexed Fixed Partici-
Stock Equity Equity Income pants
Fund Fund Fund Fund (Note 3) Total
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments (Notes 1, 2, 4 and 5):
Short-term investments $ 271,599 $ - $ - $ - $ - $ 271,599
Owens-Corning Fiberglas Corporation
common stock, 5,518,159 shares at
$36 per share (cost $27,545,384) 198,652,724 - - - - 198,653,724
Investment in master trust collective
funds - 32,711,112 8,028,800 37,880,360 - 78,620,272
Loans to participants (Note 3) - - - - 7,255,733 7,255,733
Accrued interest on loans to participants
(Note 3) - - - - 46,023 46,023
Due from Owens-Corning Fiberglas
Corporation (Note 1) 545,276 152 206 1,974 - 547,608
Accrued interest income 536 - - - - 536
------------ ----------- ----------- ----------- ----------- ------------
Total assets $199,471,135 $32,711,264 $ 8,029,006 $37,882,334 $ 7,301,756 $285,395,495
============ =========== =========== =========== =========== ============
LIABILITIES (Notes 1 and 6):
Accrued expense $ 213,075 $ 1,653 $ 1,887 $ 2,865 $ - $ 219,480
----------- ----------- ----------- ----------- ----------- ------------
PARTICIPANTS' EQUITY (Notes 1 and 6) 199,258,060 32,709,611 8,027,119 37,879,469 7,301,756 285,176,015
----------- ----------- ----------- ----------- ----------- ------------
Total liabilities and
participants' equity $199,471,135 $32,711,264 $ 8,029,006 $37,882,334 $ 7,301,756 $285,395,495
=========== =========== =========== =========== =========== ============
PARTICIPANTS' UNITS (Note 7) 16,268,932 7,067,315 1,995,994 13,550,253
UNIT VALUES (Note 7) $ 12.2478 $ 4.6283 $ 4.0216 $ 2.7955
The accompanying notes are an integral part of these statements.
</TABLE>
PAGE
<PAGE>
<TABLE>
OWENS-CORNING FIBERGLAS CORPORATION
SAVINGS AND DEFERRAL INVESTMENT PLAN
STATEMENTS OF CHANGES IN PARTICIPANTS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 1993, 1992 AND 1991
1 9 9 3
----------------------------------------------------------------------------
Loans to
Company Managed Indexed Fixed Partici-
Stock Equity Equity Income pants
Fund Fund Fund Fund (Note 3) Total
---------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME (Note 2):
Interest $ 90,544 $ - $ - $ - $ - $ 90,544
Net interest in master trust
investment income - 11,337,955 824,124 2,185,004 - 14,347,083
Interest on loans to participants
(Note 3) - - - - 530,802 530,802
Realized gain on disposition of
investments (Note 4) 11,825,721 - - - - 11,825,721
Change in unrealized appreciation
of investment in Owens-Corning
Fiberglas Corporation common stock
(Note 5) 33,204,266 - - - - 33,204,266
------------ ----------- ----------- -------------------------------------
45,120,531 11,337,955 824,124 2,185,004 530,802 59,998,416
------------ ----------- ----------- ----------- ----------- ------------
CONTRIBUTIONS (Notes 1 and 6):
Participants 6,515,186 4,018,581 1,150,426 3,279,363 - 14,963,556
Owens-Corning Fiberglas Corporation 6,645,630 - - - - 6,645,630
------------ ----------- ----------- ----------- ----------- ------------
13,160,816 4,018,581 1,150,426 3,279,363 - 21,609,186
------------ ----------- ----------- ----------- ----------- ------------
OTHER:
Distributions to participants (Note 6) (21,810,682) (2,687,453) (545,593) (4,617,086) - (29,660,814)
Administrative expense (Note 1) (187,578) (28,077) (25,086) (57,472) - (298,213)
Election of redistribution of participants'
equity among funds (Note 1) (9,353,902) 5,924,033 (124,837) 3,592,050 (37,344) -
Participants loan activity (Note 3) (322,460) 132,133 (16,073) (248,855) 455,255 -
Rollovers and other - 90,035 (323) 6,624 - 96,336
------------ ----------- ----------- ----------- ----------- ------------
(31,674,622) (3,430,671) (711,912) (1,324,739) 417,911 (29,862,691)
------------ ----------- ----------- ----------- ----------- ------------
Net increase 26,606,725 18,787,207 1,262,638 4,139,628 948,713 51,744,911
PARTICIPANTS' EQUITY - beginning of year 199,258,060 32,709,611 8,027,119 37,879,469 7,301,756 285,176,015
------------ ----------- ----------- ----------- ----------- ------------
PARTICIPANTS' EQUITY - end of year $225,864,785 $51,496,818 $ 9,289,757 $42,019,097 $ 8,250,469 $336,920,926
============ =========== =========== =========== =========== ============
The accompanying notes are an integral part of these statements.
</TABLE>
PAGE
<PAGE>
<TABLE>
OWENS-CORNING FIBERGLAS CORPORATION
SAVINGS AND DEFERRAL INVESTMENT PLAN
STATEMENTS OF CHANGES IN PARTICIPANTS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 1993, 1992 AND 1991
(Continued)
1 9 9 2
----------------------------------------------------------------------------
Loans to
Company Managed Indexed Fixed Partici-
Stock Equity Equity Income pants
Fund Fund Fund Fund (Note 3) Total
---------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME (Note 2):
Interest $ 21,827 $ - $ - $ - $ - $ 21,827
Net interest in master trust
investment income 158 6,160,456 560,698 2,368,043 - 9,089,355
Interest on loans to participants
(Note 3) - - - - 526,355 526,355
Realized gain on disposition of
investments (Note 4) 5,362,724 - - - - 5,362,724
Change in unrealized appreciation
of investment in Owens-Corning
Fiberglas Corporation common stock
(Note 5) 71,221,910 - - - - 71,221,910
------------ ----------- ----------- -------------------------------------
76,606,619 6,160,456 560,698 2,368,043 526,355 86,222,171
------------ ----------- ----------- ----------- ----------- ------------
CONTRIBUTIONS (Notes 1 and 6):
Participants 6,441,474 3,459,832 1,093,402 3,432,796 - 14,427,504
Owens-Corning Fiberglas Corporation 6,484,729 - - - - 6,484,729
------------ ----------- ----------- ----------- ----------- ------------
12,926,203 3,459,832 1,093,402 3,432,796 - 20,912,233
------------ ----------- ----------- ----------- ----------- ------------
OTHER:
Distributions to participants (Note 6) (12,036,710) (1,580,163) (601,685) (4,207,951) - (18,426,509)
Administrative expense (Note 1) (155,514) (20,084) (23,795) (41,694) - (241,087)
Election of redistribution of participants'
equity among funds (Note 1) (6,103,022) 1,544,236 691,667 4,392,201 (525,082) -
Participants loan activity (Note 3) (934,468) (126,614) (62,957) (601,219) 1,725,258 -
Rollovers and other 44,162 - (323) - - 44,162
------------ ----------- ----------- ----------- ----------- ------------
(19,185,552) (182,625) 3,230 (458,663) 1,200,176 (18,623,434)
------------ ----------- ----------- ----------- ----------- ------------
Net increase 70,347,270 9,437,663 1,657,330 5,342,176 1,726,531 88,510,970
PARTICIPANTS' EQUITY - beginning of year 128,910,790 23,271,948 6,369,789 32,537,293 5,575,225 196,665,045
------------ ----------- ----------- ----------- ----------- ------------
PARTICIPANTS' EQUITY - end of year $199,258,060 $32,709,611 $ 8,027,119 $37,879,469 $ 7,301,756 $285,176,015
============ =========== =========== =========== =========== ============
The accompanying notes are an integral part of these statements.
</TABLE>
PAGE
<PAGE>
<TABLE>
OWENS-CORNING FIBERGLAS CORPORATION
SAVINGS AND DEFERRAL INVESTMENT PLAN
STATEMENTS OF CHANGES IN PARTICIPANTS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 1993, 1992 AND 1991
(Continued)
1 9 9 1
----------------------------------------------------------------------------
Loans to
Company Managed Indexed Fixed Partici-
Stock Equity Equity Income pants
Fund Fund Fund Fund (Note 3) Total
---------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME (Note 2):
Interest $ 35,437 $ - $ - $ - $ - $ 35,437
Net interest in master trust
investment income 730 6,887,153 1,364,693 2,430,613 - 10,683,189
Interest on loans to participants
(Note 3) - - - - 437,414 437,414
Realized gain on disposition of
investments (Note 4) 5,307,879 - - - - 5,307,879
Change in unrealized appreciation
of investment in Owens-Corning
Fiberglas Corporation common stock
(Note 5) 33,098,650 - - - - 33,098,650
------------ ----------- ----------- -------------------------------------
38,442,696 6,887,153 1,364,693 2,430,613 437,414 49,562,569
------------ ----------- ----------- ----------- ----------- ------------
CONTRIBUTIONS (Notes 1 and 6):
Participants 6,731,734 2,630,849 801,818 3,504,886 - 13,669,287
Owens-Corning Fiberglas Corporation 6,157,263 - - - - 6,157,263
------------ ----------- ----------- ----------- ----------- ------------
12,888,997 2,630,849 801,818 3,504,886 - 19,826,550
------------ ----------- ----------- ----------- ----------- ------------
OTHER:
Distributions to participants (Note 6) (7,560,898) (851,790) (304,886) (1,285,899) - (10,003,473)
Administrative expense (Note 1) (137,696) (15,548) (16,596) (60,400) - (230,240)
Election of redistribution of participants'
equity among funds (Note 1) (5,996,722) 1,068,553 463,873 4,892,115 (427,819) -
Participants loan activity (Note 3) (670,300) (174,123) (50,617) (815,168) 1,710,208 -
Rollovers and other 34,122 - - - - 34,122
------------ ----------- ----------- ----------- ----------- ------------
(14,331,494) 27,092 91,774 2,730,648 1,282,389 (10,199,591)
------------ ----------- ----------- ----------- ----------- ------------
Net increase 37,000,199 9,545,094 2,258,285 8,666,147 1,719,803 59,189,528
PARTICIPANTS' EQUITY - beginning of year 91,910,591 13,726,854 4,111,504 23,871,146 3,855,422 137,475,517
------------ ----------- ----------- ----------- ----------- ------------
PARTICIPANTS' EQUITY - end of year $128,910,790 $23,271,948 $ 6,369,789 $32,537,293 $ 5,575,225 $196,665,045
============ =========== =========== =========== =========== ============
The accompanying notes are an integral part of these statements.
</TABLE>
PAGE
<PAGE>
OWENS-CORNING FIBERGLAS CORPORATION
SAVINGS AND DEFERRAL INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
(1) SUMMARY OF SIGNIFICANT PROVISIONS OF THE PLAN AND ACCOUNTING
POLICIES
Operations of the Plan
- - ----------------------
The Owens-Corning Fiberglas Corporation Savings and Deferral
Investment Plan (the Plan) principally benefits salaried employees
of Owens-Corning Fiberglas Corporation (the Company) and certain
designated subsidiaries. An eligible employee may elect to enroll
in the Plan as of the beginning of any calendar month after date of
hire.
Administrative expenses of the Plan are charged to the Plan and
include professional fees, accounting and other administrative
expenses.
The following descriptions of the Plan provide only general
information. Participants should refer to the Plan agreement for
a more complete description of the Plan provisions.
Plan Contributions
- - ------------------
Participants may contribute up to 15% of their base pay to the
Plan. All or a portion of the participants' contributions may be
designated at the participants' option as deferred income which,
pursuant to Section 401(k) of the Internal Revenue Code, is not
subject to Federal income tax until such amounts are distributed to
the participants. The Plan requires participant contributions to
be remitted to the plan's trustee, Citibank N.A., New York, (the
Trustee) on a monthly basis.
The Company contributes a 50% matching contribution for participant
contributions up to 10% of base salary.
The Company may, at its option, make Company contributions in the
form of cash or shares of common stock of the Company which are
valued at the market value of the shares on the date of
contribution. Contributions are remitted to the Trustee on or
before the last day of the month following employee contributions.
The Company satisfied a portion of its plan liability through
contributions of common stock of the Company. These contributions
totaled 14,218 shares valued at $560,000 in 1993, 45,628 shares
valued at $1,526,000 in 1992 and 25,697 shares valued at $514,000
in 1991.
Plan Investment Options
- - -----------------------
Each participant elects to have his contribution invested in 10%
increments among the investment funds made available under the
Plan. Currently, the following four investment funds are available
to participants:
Company Stock Fund
- - ------------------
Consists primarily of investments in Owens-Corning Fiberglas
Corporation common stock.
Managed Equity Fund
- - -------------------
Presently invested primarily in shares of the Acorn Fund, Inc.,
which invests principally in common stocks, but may also include
securities convertible into common stocks and equity securities of
a class different than common stock.
Indexed Equity Fund
- - -------------------
Presently invested primarily in a group trust maintained by Wells
Fargo Bank, N.A. which consists of a portfolio of equity securities
maintained to approximate the total rate of return of the
securities of the companies whose stocks make up the Standard &
Poors' Composite Index.
Fixed Income Fund
- - -----------------
Presently invests in insurance contracts, bond funds, money market
funds and other instruments providing for the payment of interest
at a fixed rate over a specified period. The return on this fund
will be a blend of the various investments held by the fund. The
income credited to each account is the prorated share of the income
received by the fund.
The Company contributions are invested only in Company common
stock. The Trustee, at its sole discretion subject to any
provisions in the trust agreement, may hold any portion of any
contributions in cash which it considers necessary to meet
anticipated disbursements.
Participants may change their investment options and contribution
rate on a monthly basis and redistribute their account balances
quarterly. Participants may discontinue their contributions to the
Plan at any time.
The number of employees with a portion of their account invested in
each fund at December 31, 1993, was as follows:
Company Managed Indexed Fixed
Stock Equity Equity Income
Fund Fund Fund Fund
- - -------- ------- ------- -------
3,386 1,727 812 1,669
Basis of Accounting
- - -------------------
The accompanying financial statements have been prepared on the
accrual basis. Investments in the common stock of the Company are
reported at quoted market value. Participants' withdrawal requests
received by the plan administrator before yearend but not yet
distributed to the participants are included as a component of
participants' equity.
Income Taxes
- - ------------
The Internal Revenue Service has issued a determination letter
dated March 31, 1989, stating that the Plan meets the requirements
of Section 401(a) of the Internal Revenue Code (the Code) and that
the trust is exempt from taxation under Section 501(a) of the Code.
In the opinion of the plan administrator, subsequent amendments
have not affected the tax status of the Plan. Participants
generally are not subject to Federal income tax on Company
contributions or fund earnings until those amounts are distributed
to them. Participants may elect to designate all or a portion of
their contributions to the Plan as deferred income pursuant to
Section 401(k) of the Code. This election permits the participants
to exclude from gross taxable income for Federal tax purposes that
portion of their contribution so designated until such time as it
is withdrawn from the Plan.
Proceedings in the Event of Plan Termination
- - --------------------------------------------
Although it has not expressed any intent to do so, the Company has
the right to terminate the Plan. In the event of termination or
upon a permanent discontinuance of Company contributions, the
equity of each participant not previously vested would fully vest.
Participants would receive their contributions to the Plan as well
as Company contributions to the Plan on their behalf and the
earnings on those contributions.
(2) INVESTMENTS
Investments of the Plan are held in the Owens-Corning Fiberglas
Corporation Savings Plans Master Trust (Master Trust) maintained by
the Trustee for the Plan and another savings plan of the Company.
Investments in the Company Stock Fund are separately identified to
the Plan. Investments in the Managed Equity Fund, Indexed Equity
Fund and Fixed Income Fund are commingled for investment purposes.
The Plan has a proportionate claim on the net assets of the
commingled funds and receives a proportionate share of the
investment income of said funds. Following is a summary of the
Master Trust financial statements for the commingled funds and the
Plan's interest in net assets by fund as of and for the year ended
December 31, 1993:
<PAGE>
<TABLE>
Shares/ Current or
Contract Contract Plan
Value Cost Value Interest
--------- ------ ----------- ----------
<C> <S> <S> <S> <S>
ASSETS:
Investments-
Managed Equity Fund:
- - --------------------
Liquid Reserve Fund
Commingled Employee
Benefit Trust $ 46,338 $ 46,338 $ 46,338 .9339
Acorn Fund, Inc. 3,949,269 35,701,971 55,092,303 .9339
Accrued interest and
dividends N/A N/A 152 .9342
Indexed Equity Fund:
- - --------------------
Liquid Reserve Fund
Commingled Employee
Benefit Trust 145,997 145,997 145,997 .8919
Wells Fargo Bank, N.A.
Index Equity Fund 99,753 7,338,028 10,271,060 .8919
Accrued interest and
dividends N/A N/A 113 .8947
Fixed Income Fund:
- - ------------------
Liquid Reserve Fund
Commingled Employee
Benefit Trust 329,678 329,678 329,678 .9119
Wells Fargo Money
Market Fund 24,918,407 24,918,407 24,918,407 .9119
Wells Fargo 1-3 Year
Government Bond Index
Fund 175,715 8,665,141 8,545,379 .9119
Principal Mutual Life
Insurance Company 12,133,667 N/A 12,133,667 .9119
Accrued interest and
dividends N/A N/A 163,501 .9119
------------
Net assets in Master Trust $111,646,595
============
/TABLE
<PAGE>
<TABLE>
Managed Indexed Fixed
Equity Equity Income
Fund Fund Fund Total
-------- -------- ------- -------
<C> <S> <S> <S> <S>
INVESTMENT INCOME:
Interest $ 15,612 $ 5,024 $2,452,724 $ 2,473,360
Dividends 2,391,153 262,096 - 2,653,249
Realized gain
on disposition of
investments 315,289 - - 315,289
Change in unrealized
appreciation
of investments 9,357,478 648,373 (87,664) 9,918,187
----------- -------- ---------- -----------
$12,079,532 $915,493 $2,365,060 $15,360,085
=========== ======== ========== ===========
/TABLE
<PAGE>
Investments are reported at quoted market value in all funds except
guaranteed investment contracts in the Fixed Income Fund which are
valued at the contract value (Contract Value). Changes in
unrealized appreciation and depreciation are reflected as changes
in participants' equity. Purchase and sales are recorded on the
trade date basis. Realized gain and loss on sale of investments is
computed using average cost.
(3) LOANS
Loans may be made from the Plan to active participants. The total
amount a participant may borrow is 50% of the participant's total
vested account limited to the total of the participant's
contributions designated as deferrals and related earnings. The
minimum amount available for a loan is $1,000 and the maximum is
$50,000, reduced for the highest loan balance outstanding in the
prior 12 months.
Loans advanced are repaid through regular payroll deductions with
interest equal to the prime rate in effect at the time of the
advance. Loans advanced between November 1, 1989 and December 31,
1990, are repaid with interest equal to the 5-year U.S. Treasury
note rate in effect at the time of the advance plus 2%. The
monthly loan payment cannot exceed 30% of the borrower's base pay.
A loan can be requested for any reason. A borrower has from one to
five years to repay the loan. Repayments of principal and interest
are invested in one of the four investment funds in accordance with
the borrower's election.
(4) REALIZED GAIN/LOSS
Gains or losses are realized when investments are sold. Cost of
investments sold is determined on an average cost basis.
Gains realized in the Company Stock Fund on the Company's common
stock are summarized below:
1 9 9 3 1 9 9 2 1 9 9 1
------- ------- -------
Proceeds $13,193,288 $6,153,187 $6,240,286
Cost 1,367,569 790,462 932,407
----------- ---------- ----------
$11,825,719 $5,362,724 $5,307,879
=========== ========== ==========
(5) UNREALIZED APPRECIATION/DEPRECIATION OF INVESTMENTS
Unrealized appreciation/depreciation, equal to the difference
between cost and quoted market value of investments, is recognized
in determining the value of each fund except guaranteed investment
contracts in the Fixed Income Fund which are carried at Contract
Value. The change in unrealized appreciation/depreciation during
each of the three years ended December 31, 1993, is set forth
below. The balances for the Managed Equity Fund, Indexed Equity
Fund and Fixed Income Fund are the commingled amounts in the Master
Trust, while the Company Stock Fund amounts are specific to the
Plan. See Note 2 for the Plan's ownership in the commingled funds.<PAGE>
<TABLE>
Company Managed Indexed Fixed
Stock Equity Equity Income
Fund Fund Fund Fund
-------- -------- --------- -------
<S> <C> <C> <C> <C>
Unrealized appreciation
(depreciation) at
January 1, 1991 $ 66,787,780 $(1,370,827) $ 764,236 $ -
Change in unrealized
appreciation during 1991 33,098,650 6,479,245 1,214,792 -
------------ ----------- ---------- ---------
Unrealized appreciation
at December 31, 1991 99,886,430 5,108,418 1,979,028 -
Change in unrealized
appreciation
(depreciation)
during 1992 71,221,910 4,924,431 305,631 (32,107)
------------ ----------- ---------- ---------
Unrealized appreciation
(depreciation) at
December 31, 1992 171,108,340 10,032,849 2,284,659 (32,107)
Change in unrealized
appreciation
(depreciation)
during 1993 33,204,266 9,357,478 648,373 (87,664)
------------ ----------- --------- --------
Unrealized appreciation
(depreciation) at
December 31, 1993 $204,312,606 $19,390,327 $2,933,032 $(119,771)
============ =========== ========== =========
/TABLE
<PAGE>
(6) VESTING, FORFEITURES AND DISTRIBUTIONS
Company contributions and dividends thereon vest at the rate of 20%
for each year of service by the participant with the Company.
Employees with at least 5 years of service are fully vested in all
Company contributions. Such amounts also become fully vested and
immediately distributable upon the participant attaining 65 years
of age, termination of the participant's employment due to
retirement, disability or death, or involuntary termination of the
participant's employment (other than for cause), termination of the
Plan, or permanent discontinuance of the prescribed Company
contributions to the Plan.
Participants may at any time withdraw all or any part of the value
of their contributions excluding contributions designated as
deferrals; however, participants who voluntarily terminate or are
terminated for cause will forfeit the nonvested portion of the
Company contributions and related earnings which are applicable to
the withdrawal. Forfeitures are applied to reduce subsequent
Company contributions to the Plan. The market value forfeited by
employees withdrawing from the Plan was $40,000 in 1993, $27,000 in
1992 and $34,000 in 1991. Prior to January 1, 1989, participants
were not permitted to withdraw any part of the value of their
contributions designated as deferrals or earnings thereon except in
the event of termination of employment with the Company or upon
proof of financial hardship deemed adequate by the plan
administrator. Beginning January 1, 1989, earnings on deferred
contributions made subsequent to December 31, 1988, may no longer
be withdrawn due to hardship and participants may withdraw deferred
contributions and earnings thereon upon attainment of age 59-1/2
years. Beginning January 1, 1990, Company contributions and
earnings thereon cannot be withdrawn by participants, even if
vested, unless terminated, retired or deceased.
Participants may elect to receive their distribution from the
Company Stock Fund in the form of cash or Company stock. These
distributions totaled 224,734 shares of stock valued at $9,610,000
in 1993, 248,682 shares of stock valued at $6,855,000 in 1992 and
372,701 shares of stock valued at $5,299,000 in 1991.
Participants' requests for withdrawals made prior to December 31,
1993, and subsequently paid were as follows:
Company Stock Fund $1,220,512
Managed Equity Fund 399,466
Indexed Equity Fund 35,786
Fixed Income Fund 411,880
----------
$2,067,644
==========
(7) UNIT VALUES
As of January 1, 1993, the interest of each participant in the
Company Stock Fund is represented by shares of Company stock and is
represented by dollars for each of the other investment funds.
Prior to January 1, 1993, the interest of each participant in the
Company Stock Fund was represented by Company stock units and the
interest of each participant in each of the other investment funds
was represented by investment fund units. On each valuation date
(month-end), the fund units were revalued by dividing the total
market value of each fund as of the valuation date by the number of
outstanding units for each fund as of the end of the prior month.
Contributions and dividends received on Company stock were
allocated to participants in units, the number of which was
calculated by dividing the amount allocated to each participant by
the investment fund's most recent unit valuation.
Unit values used in the allocation of contributions, forfeitures,
transfers and withdrawals to participants during 1992 follow:
<PAGE>
Company Managed Indexed Fixed
Stock Equity Equity Income
Fund Fund Fund Fund
--------- -------- ------- --------
January $ 8.8701 $3.8427 $3.6020 $2.5885
February 12.5860 3.9832 3.6462 2.6037
March 11.4144 3.9549 3.5761 2.6191
April 11.7930 3.8351 3.6789 2.6353
May 11.2078 3.8493 3.6953 2.6511
June 10.1203 3.7555 3.6397 2.6671
July 11.9134 3.8964 3.7884 2.6842
August 10.9934 3.8350 3.7106 2.6996
September 10.9534 3.9017 3.7538 2.7148
October 10.2443 4.1083 3.7670 2.7257
November 11.2055 4.3511 3.8952 2.7374
December 12.0423 4.5282 3.9409 2.7529
Unit values used in the allocation of contributions, forfeitures,
transfers and withdrawals to participants during 1991 follow:
Company Managed Indexed Fixed
Stock Equity Equity Income
Fund Fund Fund Fund
--------- ----------- --------- -------
January $ 7.2648 $2.6169 $2.9379 $2.3883
February 8.5212 2.8327 3.1358 2.4028
March 8.1879 2.9481 3.2099 2.4196
April 7.9840 3.0459 3.2337 2.4367
May 9.5364 3.1884 3.3731 2.4533
June 8.9103 3.0509 3.2204 2.4688
July 10.7931 3.1923 3.3696 2.4863
August 11.5437 3.3119 3.4583 2.5031
September 11.2941 3.3155 3.3904 2.5206
October 7.3728 3.4207 3.4383 2.5382
November 5.9082 3.3235 3.2953 2.5552
December 7.4992 3.6452 3.6712 2.5731
(8) SUBSEQUENT EVENT
Subsequent to December 31, 1993, the market value of the Company's
common stock decreased. This decrease caused a reduction of
approximately 27% in the market value of the Company's common stock
held by the Plan as of June 9, 1994.
<PAGE>
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the
incorporation by reference of our report, dated June 9, 1994,
included in Owens-Corning Fiberglas Corporation Savings and
Deferral Investment Plan's annual report on Form 11-K for the year
ended December 31, 1993, into the Company's previously filed
Registration Statement on Form S-8 (File Nos. 33-9986 and 33-
27209).
Toledo, Ohio,
June 29, 1994.
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES AND EXCHANGE ACT OF 1934
For the Fiscal Year ended December 31, 1993
OWENS-CORNING FIBERGLAS CORPORATION
SAVINGS AND SECURITY PLAN
OWENS-CORNING FIBERGLAS CORPORATION
Fiberglas Tower
Toledo, Ohio 43659
Commission File No. 1-3660
- - ---------------------------------------------------------------
REQUIRED INFORMATION
(a) Financial Statements.
1.Report of Independent Public Accountants
2.Statements of Participants' Equity - as of December 31,
1993 and 1992
3.Statements of Changes in Participants' Equity - for the
years ended December 31, 1993, 1992 and 1991
4. Notes to Financial Statements
(b) Exhibit.
Consent of Arthur Andersen & Co.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the trustees (or other persons who administer the Plan) have
duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
OWENS-CORNING FIBERGLAS CORPORATION
SAVINGS AND DEFERRAL INVESTMENT PLAN
By/s/ Michael I. Miller
---------------------
Michael I. Miller
Chairman, Investment Review Committee
DATED: June 30, 1994<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Plan Administrator,
Owens-Corning Fiberglas Corporation
Savings and Security Plan:
We have audited the accompanying statements of participants' equity
of the OWENS-CORNING FIBERGLAS CORPORATION SAVINGS AND SECURITY
PLAN as of December 31, 1993 and 1992, and the related statements
of changes in participants' equity for each of the three years in
the period ended December 31, 1993. These financial statements are
the responsibility of the plan administrator. 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 audits 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 the plan administrator, 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 participants' equity of the
Owens-Corning Fiberglas Corporation Savings and Security Plan as of
December 31, 1993 and 1992, and the changes in its participants'
equity for each of the three years in the period ended December 31,
1993, in conformity with generally accepted accounting principles.
Toledo, Ohio,
June 9, 1994.
PAGE
<PAGE>
<TABLE>
OWENS-CORNING FIBERGLAS CORPORATION
SAVINGS AND SECURITY PLAN
STATEMENTS OF PARTICIPANTS' EQUITY
AS OF DECEMBER 31, 1993 AND 1992
1 9 9 3
----------------------------------------------------------
Company Managed Indexed Fixed
Stock Equity Equity Income
Fund Fund Fund Fund Total
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments (Notes 1, 2, 3 and 4):
Short-term investments $ 138,062 $ - $ - $ - $ 138,062
Owens-Corning Fiberglas Corporation common stock,
402,693 shares at $44.375 per share
(cost $11,531,843) (Note 7) 17,869,502 - - - 17,869,502
Investment in master trust collective funds - 3,644,995 1,126,239 4,061,874 8,833,108
Accrued interest income 206 - - - 206
Due from Owens-Corning Fiberglas Corporation (Note 1) 351,071 39,315 11,094 41,162 442,642
----------- ----------- ----------- ----------- -----------
Total assets $18,358,841 $ 3,684,310 $ 1,137,333 $ 4,103,036 $27,283,520
=========== =========== =========== =========== ===========
LIABILITIES (Notes 1 and 5):
Accrued expenses $ 129,957 $ - $ - $ - $ 129,957
----------- ----------- ----------- ----------- -----------
PARTICIPANTS' EQUITY (Notes 1 and 5) 18,228,884 3,684,310 1,137,333 4,103,036 27,153,563
----------- ----------- ----------- ----------- -----------
Total liabilities and participants' equity $18,358,841 $ 3,684,310 $ 1,137,333 $ 4,103,036 $27,283,520
=========== =========== =========== =========== ===========
The accompanying notes are an integral part of these statements.
</TABLE>
PAGE
<PAGE>
<TABLE>
OWENS-CORNING FIBERGLAS CORPORATION
SAVINGS AND SECURITY PLAN
STATEMENTS OF PARTICIPANTS' EQUITY
AS OF DECEMBER 31, 1993 AND 1992
(Continued)
1 9 9 2
----------------------------------------------------------
Company Managed Indexed Fixed
Stock Equity Equity Income
Fund Fund Fund Fund Total
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments (Notes 1, 2, 3 and 4):
Short-term investments $ 97,873 $ - $ - $ - $ 97,873
Owens-Corning Fiberglas Corporation common stock,
312,899 shares at $36 per share
(cost $7,693,226) 11,264,364 - - - 11,264,364
Investment in master trust collective funds - 1,953,166 794,194 2,656,698 5,404,058
Accrued interest income 266 - - - 266
Due from Owens-Corning Fiberglas Corporation (Note 1) 252,587 27,633 10,847 36,349 327,416
----------- ----------- ----------- ----------- -----------
Total assets $11,615,090 $ 1,980,799 $ 805,041 $ 2,693,047 $17,093,977
=========== =========== =========== =========== ===========
LIABILITIES (Notes 1 and 5):
Accrued expenses $ 95,973 $ - $ - $ - $ 95,973
----------- ----------- ----------- ----------- -----------
PARTICIPANTS' EQUITY (Notes 1 and 5) 11,519,117 1,980,799 805,041 2,693,047 16,998,004
----------- ----------- ----------- ----------- -----------
Total liabilities and participants' equity $11,615,090 $ 1,980,799 $ 805,041 $ 2,693,047 $17,093,977
=========== =========== =========== =========== ===========
PARTICIPANTS' UNITS (Note 6) 8,586,222 1,220,210 555,320 2,128,717
=========== =========== =========== ===========
UNIT VALUES (Note 6) 1.3416 1.6233 1.4497 1.2651
=========== =========== =========== ===========
The accompanying notes are an integral part of these statements.
</TABLE>
PAGE
<PAGE>
<TABLE>
OWENS-CORNING FIBERGLAS CORPORATION
SAVINGS AND SECURITY PLAN
STATEMENTS OF CHANGES IN PARTICIPANTS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 1993, 1992 AND 1991
1 9 9 3
----------------------------------------------------------
Company Managed Indexed Fixed
Stock Equity Equity Income
Fund Fund Fund Fund Total
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME (Notes 1, 2, 3 and 4):
Interest $ 4,014 $ - $ - $ - $ 4,014
Net interest in master trust investment income - 741,576 91,369 180,056 1,013,001
Change in unrealized appreciation of investment in
Owens-Corning Fiberglas Corporation common stock
(Note 3) 2,766,520 - - - 2,766,520
----------- ----------- ----------- ----------- -----------
2,770,534 741,576 91,369 180,056 3,783,535
----------- ----------- ----------- ----------- -----------
CONTRIBUTIONS (Notes 1 and 5):
Participants 3,369,881 1,144,432 414,042 1,557,351 6,485,706
Owens-Corning Fiberglas Corporation 2,194,422 - - - 2,194,422
----------- ----------- ----------- ----------- -----------
5,564,303 1,144,432 414,042 1,557,351 8,680,128
----------- ----------- ----------- ----------- -----------
OTHER:
Distributions to participants (Note 5) (1,366,525) (250,355) (107,059) (470,393) (2,194,332)
Election of redistribution of participants' equity
among funds (Note 1) (171,299) 69,855 (59,598) 161,042 -
Administrative expenses (Note 1) (87,246) (12,336) (6,462) (18,067) (124,111)
Rollovers and other - 10,339 - - 10,339
----------- ----------- ----------- ----------- -----------
(1,625,070) (182,497) (173,119) (327,418) (2,308,104)
----------- ----------- ----------- ----------- -----------
Net increase 6,709,767 1,703,511 332,292 1,409,989 10,155,559
PARTICIPANTS' EQUITY - beginning of year 11,519,117 1,980,799 805,041 2,693,047 16,998,004
----------- ----------- ----------- ----------- -----------
PARTICIPANTS' EQUITY - end of year $18,228,884 $ 3,684,310 $ 1,137,333 $ 4,103,036 $27,153,563
=========== =========== =========== =========== ===========
The accompanying notes are an integral part of these statements.
</TABLE>
PAGE
<PAGE>
<TABLE>
OWENS-CORNING FIBERGLAS CORPORATION
SAVINGS AND SECURITY PLAN
STATEMENTS OF CHANGES IN PARTICIPANTS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 1993, 1992 AND 1991
(Continued)
1 9 9 2
----------------------------------------------------------
Company Managed Indexed Fixed
Stock Equity Equity Income
Fund Fund Fund Fund Total
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME (Notes 1, 2, 3 and 4):
Interest $ 5,676 $ - $ - $ - $ 5,676
Net interest in master trust investment income - 325,944 51,336 134,525 511,805
Change in unrealized appreciation of investment in
Owens-Corning Fiberglas Corporation common stock
(Note 3) 3,325,111 - - - 3,325,111
----------- ----------- ----------- ----------- -----------
3,330,787 325,944 51,336 134,525 3,842,592
----------- ----------- ----------- ----------- -----------
CONTRIBUTIONS (Notes 1 and 5):
Participants 2,285,322 806,023 364,749 1,231,778 4,687,872
Owens-Corning Fiberglas Corporation 1,625,860 - - - 1,625,860
----------- ----------- ----------- ----------- -----------
3,911,182 806,023 364,749 1,231,778 6,313,732
----------- ----------- ----------- ----------- -----------
OTHER:
Distributions to participants (Note 5) (706,191) (134,470) (100,065) (269,573) (1,210,299)
Election of redistribution of participants' equity
among funds (Note 1) (63,329) 10,326 (33,033) 86,036 -
Administrative expenses (Note 1) (54,317) (6,863) (4,689) (11,981) (77,850)
----------- ----------- ----------- ----------- -----------
(823,837) (131,007) (137,787) (195,518) (1,288,149)
----------- ----------- ----------- ----------- -----------
Net increase 6,418,132 1,000,960 278,298 1,170,785 8,868,175
PARTICIPANTS' EQUITY - beginning of year 5,100,985 979,839 526,743 1,522,262 8,129,829
----------- ----------- ----------- ----------- -----------
PARTICIPANTS' EQUITY - end of year $11,519,117 $ 1,980,799 $ 805,041 $ 2,693,047 $16,998,004
=========== =========== =========== =========== ===========
The accompanying notes are an integral part of these statements.
</TABLE>
PAGE
<PAGE>
<TABLE>
OWENS-CORNING FIBERGLAS CORPORATION
SAVINGS AND SECURITY PLAN
STATEMENTS OF CHANGES IN PARTICIPANTS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 1993, 1992 AND 1991
(Continued)
1 9 9 1
----------------------------------------------------------
Company Managed Indexed Fixed
Stock Equity Equity Income
Fund Fund Fund Fund Total
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME (Notes 1, 2, 3 and 4):
Interest $ 5,821 $ - $ - $ - $ 5,821
Net interest in master trust investment income - 221,728 90,147 84,371 396,246
Change in unrealized appreciation of investment in
Owens-Corning Fiberglas Corporation common stock
(Note 3) 704,842 - - - 704,842
----------- ----------- ----------- ----------- -----------
710,663 221,728 90,147 84,371 1,106,909
----------- ----------- ----------- ----------- -----------
CONTRIBUTIONS (Notes 1 and 5):
Participants 1,587,360 503,731 291,143 953,628 3,335,862
Owens-Corning Fiberglas Corporation 1,136,943 - - - 1,136,943
----------- ----------- ----------- ----------- -----------
2,724,303 503,731 291,143 953,628 4,472,805
----------- ----------- ----------- ----------- -----------
OTHER:
Distributions to participants (Note 5) (380,564) (56,537) (48,835) (124,244) (610,180)
Election of redistribution of participants' equity
among funds (Note 1) (89,633) 4,812 (851) 85,672 -
Administrative expenses (Note 1) (30,625) (4,033) (4,238) (6,084) (44,980)
----------- ----------- ----------- ----------- -----------
(500,822) (55,758) (53,924) (44,656) (655,160)
----------- ----------- ----------- ----------- -----------
Net increase 2,934,144 669,701 327,366 993,343 4,924,554
PARTICIPANTS' EQUITY - beginning of year 2,166,841 310,138 199,377 528,919 3,205,275
----------- ----------- ----------- ----------- -----------
PARTICIPANTS' EQUITY - end of year $ 5,100,985 $ 979,839 $ 526,743 $ 1,522,262 $ 8,129,829
=========== =========== =========== =========== ===========
The accompanying notes are an integral part of these statements.
</TABLE>
PAGE
<PAGE>
OWENS-CORNING FIBERGLAS CORPORATION
SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS
(1) SUMMARY OF SIGNIFICANT PROVISIONS OF THE PLAN AND ACCOUNTING
POLICIES
Operation of the Plan
---------------------
The Owens-Corning Fiberglas Corporation Savings and
Security Plan (the Plan) which was adopted effective
January 1, 1990, benefits designated groups of hourly
employees of Owens-Corning Fiberglas Corporation (the
Company) and certain subsidiaries. An eligible employee
may elect to participate in the Plan on the first day of
February or August by filing an election to participate by
the 25th day of the preceding month. Six months of
employment prior to the first day of February or August is
required for eligibility.
Administrative expenses of the Plan including professional
fees, accounting fees and other administrative expenses are
paid by the Plan or the Company at the discretion of the
Company. The Company paid approximately 100% of
administrative expenses in 1993, 50% in 1992 and 25% in
1991.
The following descriptions of the Plan provide only general
information. Participants should refer to the Plan
agreement for a more complete description of the Plan
provisions.
Plan Contributions
------------------
Participants may contribute up to 15% of their base pay.
All or a portion of the participants' contributions may be
designated at the participants' option as deferred income
which, pursuant to Section 401(k) of the Internal Revenue
Code, is not subject to federal income tax until such
amounts are distributed to the participants. The Plan
requires participant contributions to be remitted to the
Plan's trustee, Citibank N.A., New York, (the Trustee) on
a monthly basis.
The Company makes up to a 50% matching contribution for
participant contributions up to 4% of the participant's
base pay at certain plant locations.
Effective January 1, 1992, the Plan was amended to provide
a retirement contribution equal to 2% of eligible pay for
participants who work at a plant or business unit where a
pension plan is not available.
The Company may, at its option, make Company contributions
in the form of cash or shares of common stock of the
Company which are valued at the market value of the shares
on the fifteenth trading day of the month in which the
contribution is to be made. Contributions are remitted to
the Trustee on or before the last day of the month
following employee contributions. No contributions in the
form of shares of common stock were made in 1993, 1992 or
1991.
<PAGE>
Plan Investment Options
-----------------------
Each participant elects to have his contribution invested
in 10% increments among the investment funds made available
under the Plan. Currently, the following four investment
funds are available to participants:
Company Stock Fund
------------------
Consists primarily of investments in Owens-Corning
Fiberglas Corporation common stock.
Managed Equity Fund
-------------------
Presently invested primarily in shares of the Acorn Fund,
Inc., which invests principally in common stocks, but may
also include securities convertible into common stocks and
equity securities of a class different than common stock.
Indexed Equity Fund
-------------------
Presently invested primarily in a group trust maintained by
Wells Fargo Bank, N.A. which consists of a portfolio of
equity securities maintained to approximate the total rate
of return of the securities of the companies whose stocks
make up the Standard & Poor's Composite Index.
Fixed Income Fund
-----------------
Presently invests in insurance contracts and other
instruments providing for the payment of interest at a
fixed rate over a specified period. The return on this
fund will be a blend of the various investments held by the
fund. The income credited to each account is the prorated
share of the income received by the fund.
The Company contributions are invested only in Company
common stock. The Trustee, at its sole discretion subject
to any provisions in the trust agreement, may hold any
portion of any contributions in cash which it considers
necessary to meet anticipated disbursements.
Participants may change their investment options,
contribution rate and redistribute their account balances
twice a year. Participants may discontinue their
contributions to the Plan at any time.
The number of employees with a portion of their account
invested in each fund at December 31, 1993, was as follows:
Company Managed Indexed Fixed
Stock Equity Equity Income
Fund Fund Fund Fund
-------- -------- -------- --------
5,406 1,446 828 1,693
Basis of Accounting
-------------------
The accompanying financial statements have been prepared on
the accrual basis. Investments in the common stock of the
Company are reported at quoted market value. Participants'
withdrawal requests received by the plan administrator
before yearend but not yet distributed to the participants
are included as a component of participants' equity.
Income Taxes
------------
The Plan administrator intends to request a determination
letter from the Internal Revenue Service stating that the
Plan meets the requirements of Section 401(a) of the
Internal Revenue Code (the Code) and that the trust is
exempt from taxation under Section 501(a) of the Code. The
Plan administrator believes that the Plan meets the
Internal Revenue Service requirements. Participants in
plans that meet the requirements of the Code generally are
not subject to Federal income tax on Company contributions
or fund earnings until those amounts are distributed to
them. Participants may elect to designate all or a portion
of their contributions to the Plan as deferred income
pursuant to Section 401(k) of the Code. This election
permits the participants to exclude from gross taxable
income for Federal tax purposes that portion of their
contribution so designated until such time as it is
withdrawn from the Plan.
Proceedings in the Event of Plan Termination
--------------------------------------------
Although it has not expressed any intent to do so, the
Company has the right to terminate the Plan. In the event
of termination or upon a permanent discontinuance of
Company contributions, the equity of each participant not
previously vested would fully vest. Participants would
receive their contributions to the Plan as well as Company
contributions to the Plan on their behalf and the earnings
on those contributions.
(2) INVESTMENTS
-----------
Investments of the Plan are held in the Owens-Corning
Fiberglas Corporation Savings Plans Master Trust (Master
Trust) maintained by the Trustee for the Plan and another
savings plan of the Company. Investments in the Company
Stock Fund are separately identified to the Plan.
Investments in the Managed Equity Fund, Indexed Equity Fund
and Fixed Income Fund are commingled for investment
purposes.
The Plan has a proportionate claim on the net assets of the
commingled funds and receives a proportionate share of the
investment income of said funds. Following is a summary of
the Master Trust financial statements for the commingled
funds and the Plan's interest in net assets by fund as of
and for the year ended December 31, 1993:
<PAGE>
<TABLE>
Shares/ Current or
Contract Contract Plan
Value Cost Value Interest
--------- --------- ---------- ---------
<S> <C> <C> <C> <C>
ASSETS:
Investments-
Managed Equity Fund:
--------------------
Liquid Reserve Fund
Commingled Employee
Benefit Trust $ 46,338 $ 46,338 $ 46,338 .0661
Acorn Fund, Inc. 3,949,269 35,701,971 55,092,303 .0661
Accrued interest and
dividends N/A N/A 152 .0658
Indexed Equity Fund:
--------------------
Liquid Reserve Fund
Commingled Employee
Benefit Trust 145,997 145,997 145,997 .1081
Wells Fargo Bank, N.A.
Index Equity Fund 99,753 7,338,028 10,271,060 .1081
Accrued interest and
dividends N/A N/A 113 .1053
Fixed Income Fund:
------------------
Liquid Reserve Fund
Commingled Employee
Benefit Trust 329,678 329,678 329,678 .0881
Wells Fargo Money
Market Fund 24,918,407 24,918,407 24,918,407 .0881
Wells Fargo 1-3 Year
Government Bond Index
Fund 175,715 8,665,141 8,545,379 .0881
Principal Mutual Life
Insurance Company 12,133,667 N/A 12,133,667 .0881
Accrued interest and
dividends N/A N/A 163,501 .0881
------------
Net assets in Master Trust $111,646,595
============
/TABLE
<PAGE>
<TABLE>
Managed Indexed Fixed
Equity Equity Income
Fund Fund Fund Total
--------- --------- ---------- ---------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 15,612 $ 5,024 $ 2,452,724 $ 2,473,360
Dividends 2,391,153 262,096 - 2,653,249
Realized gain on
disposition of
investments 315,289 - - 315,289
Change in unrealized
appreciation (depreciation)
of investments 9,357,478 648,373 (87,664) 9,918,187
----------- ----------- ----------- -----------
$12,079,532 $ 915,493 $ 2,365,060 $15,360,085
=========== =========== =========== ===========
/TABLE
<PAGE>
Investments are reported at quoted market value in all
funds except guaranteed investment contracts in the Fixed
Income Fund which are valued at the contract value
(Contract Value). Changes in unrealized appreciation and
depreciation are reflected as changes in participants'
equity. Purchase and sales are recorded on the trade date
basis. Realized gain and loss on sale of investments is
computed using average cost.
(3) UNREALIZED APPRECIATION/DEPRECIATION OF INVESTMENTS
Unrealized appreciation/depreciation, equal to the
difference between cost and quoted market value of
investments, is recognized in determining the value of each
fund except for certain investments in the Fixed Income
Fund which are carried at Contract Value. The change in
unrealized appreciation/depreciation during each of the
three years ended December\31, 1993, is set forth below.
The balances for the Managed Equity Fund, Indexed Equity
Fund and Fixed Income Fund are the commingled amounts in
the Master Trust, while the Company Stock Fund amounts are
specific to the Plan. See Note 2 for the Plan's ownership
in the commingled funds.
<PAGE>
<TABLE>
Company Managed Indexed Fixed
Stock Equity Equity Income
Fund Fund Fund Fund
--------- --------- ---------- ---------
<S> <C> <C> <C> <C>
Unrealized appreciation
(depreciation) at
January 1, 1991 $ (458,815)$(1,370,827) $ 764,236 $ -
Change in unrealized
appreciation (depreciation)
during 1991 704,842 6,479,245 1,214,792 -
----------- ----------- ----------- -----------
Unrealized appreciation
at December 31, 1991 246,027 5,108,418 1,979,028 -
Change in unrealized
appreciation
(depreciation)
during 1992 3,325,111 4,924,341 305,631 (32,107)
----------- ----------- ----------- -----------
Unrealized appreciation
(depreciation) at
December 31, 1992 3,571,138 10,032,849 2,284,659 (32,107)
Change in unrealized
appreciation (depreciation)
during 1993 2,766,520 9,357,478 648,373 (87,664)
----------- ----------- ----------- -----------
Unrealized appreciation
(depreciation) at
December 31, 1993 $ 6,337,658 $19,390,327 $ 2,933,032 $ (119,771)
=========== =========== =========== ===========
/TABLE
<PAGE>
(4) REALIZED GAINS/LOSSES
Gains or losses are realized when investments are sold.
(5) VESTING, FORFEITURES AND DISTRIBUTIONS
Company contributions and earnings thereon vest at the rate
of 20% on each year following date of hire by the
participant with the Company. Employees with at least five
years of service are fully vested in all Company
contributions. Such amounts also become fully vested upon
the participant attaining 65 years of age, termination of
the participant's employment due to a permanent plant
closing, retirement, disability or death, termination of
the Plan, or permanent discontinuance of the prescribed
Company contributions to the Plan. Such vested
contributions and earnings thereon are automatically
distributable upon attaining 65 years of age or death. If
termination of employment occurs for any reason other than
attaining 65 years of age or death, the participant's
account will become distributable at 65 years of age or
death unless an election for immediate distribution is
filed within 90 days of termination with the Plan
administrator.
Participants may elect to withdraw all or any part of the
value of their contributions excluding contributions
designated as deferrals on a semi-annual basis.
Withdrawals of deferrals may only be made upon proof of
financial hardship deemed adequate by the Plan
administrator. Upon attainment of age 59-1/2 years,
participants may elect to withdraw deferrals and earnings
thereon. Participants who voluntarily terminate or are
terminated for cause will forfeit the nonvested portion of
the Company contributions and related earnings which are
applicable to the distribution. Forfeitures are applied to
reduce subsequent Company contributions to the Plan. The
market value forfeited by employees receiving distributions
from the Plan was approximately $7,000 in 1993 and $6,000
in 1992 and $4,000 in 1991.
Participants may elect to receive their distributions from
the Company Stock Fund in the form of cash or Company
stock. These distributions totaled 2,166 shares of stock
valued at $90,000 in 1993, 1,753 shares of stock valued at
$49,000 in 1992 and 2,405 shares of stock valued at $46,000
in 1991.
Participants' requests for withdrawals made prior to
December 31, 1993, and subsequently paid were as follows:
Company Stock Fund $133,573
Managed Equity Fund 39,784
Indexed Equity Fund 7,716
Fixed Income Fund 31,048
---------
$212,121
=========
(6) UNIT VALUES
As of January 1, 1993, the interest of each participant in
the Company Stock Fund was represented by shares of Company
stock and was represented by dollars for each of the other
investment funds.
Prior to January 1, 1993, the interest of each participant
in the Company Stock Fund was represented by Company stock
units and the interest of each participant in each of the
other investment funds was represented by investment fund
units. On each valuation date (month-end), the fund units
were revalued by dividing the total market value of each
fund as of the valuation date by the number of outstanding
units for each fund as of the end of the prior month.
Contributions and dividends received on Company stock were
allocated to participants in units, the number of which was
calculated by dividing the amount allocated to each
participant by the investment fund's most recent unit
valuation.
Unit values used in the allocation of contributions,
forfeitures, transfers and withdrawals to participants
during 1992 are as follow:
<PAGE>
<TABLE>
Company Managed Indexed Fixed
Stock Equity Equity Income
Fund Fund Fund Fund
--------- --------- ---------- ---------
<S> <C> <C> <C> <C>
January $0.9919 $1.3729 $1.3289 $1.1880
February 1.4006 1.4243 1.3466 1.1950
March 1.2733 1.4141 1.3204 1.2016
April 1.3143 1.3702 1.3589 1.2089
May 1.2499 1.3744 1.3642 1.2156
June 1.1292 1.3397 1.3419 1.2225
July 1.3274 1.3901 1.3969 1.2299
August 1.2223 1.3661 1.3647 1.2360
September 1.2177 1.3091 1.3804 1.2429
October 1.1404 1.4638 1.3849 1.2475
November 1.2441 1.5491 1.4304 1.2529
December 1.3385 1.6129 1.4466 1.2594
/TABLE
<PAGE>
Unit values used in the allocation of contributions,
forfeitures, transfers and withdrawals to participants
during 1991 follow:
<PAGE>
<TABLE>
Company Managed Indexed Fixed
Stock Equity Equity Income
Fund Fund Fund Fund
--------- --------- ---------- ---------
<S> <C> <C> <C> <C>
January $0.8166 $0.9276 $1.0825 $1.0959
February 0.9572 1.0103 1.1643 1.1038
March 0.9188 1.0527 1.1925 1.1118
April 0.8935 1.0871 1.1938 1.1195
May 1.0673 1.1390 1.2485 1.1277
June 0.9979 1.0884 1.1899 1.1353
July 1.2064 1.1392 1.2449 1.1434
August 1.2917 1.1842 1.2773 1.1520
September 1.2639 1.1852 1.2558 1.1600
October 0.8305 1.2230 1.2699 1.1678
November 0.6628 1.1849 1.2155 1.1726
December 0.8412 1.3015 1.3565 1.1798
/TABLE
<PAGE>
(7) SUBSEQUENT EVENT
Subsequent to December 31, 1993, the market value of the
Company's common stock decreased. This decrease caused a
reduction of approximately 27% in the market value of the
Company's common stock held by the Plan as of June 9, 1994.
<PAGE>
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the
incorporation by reference of our report, dated June 9, 1994,
included in Owens-Corning Fiberglas Corporation Savings and
Security Plan's annual report on Form 11-K for the year ended
December 31, 1993, into the Company's previously filed Registration
Statement on Form S-8 (File No. 33-31687).
Toledo, Ohio,
June 29, 1994.
