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
For the fiscal year ended December 31, 1993
Commission file number 1-4982
A. Full title of the Plan and the address of the Plan, if
different from that of the issuer named below:
PARKER-HANNIFIN EMPLOYEES'
SAVINGS PLUS STOCK OWNERSHIP PLAN
B. Name of the issuer of the securities held pursuant to the
Plan and the address of its principal executive office:
PARKER-HANNIFIN CORPORATION
17325 EUCLID AVENUE
CLEVELAND, OHIO 44112
<PAGE>
THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN
INDEX OF FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE
PAGE
Report of Independent Accountants F-1
Financial Statements:
Statements of Financial Condition at December 31, 1993 and 1992 F-2
Statements of Income and Changes in Plan Equity for the years
ended December 31, 1993 and 1992 F-2
Notes to Financial Statements F-3 to F-15
Supplemental Schedule:
Item 27d - Schedule of Reportable Transactions
for the year ended December 31, 1993 F-16
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and
Board of Directors
Parker Hannifin Corporation
We have audited the accompanying statements of financial condition of the
Parker-Hannifin Employees' Savings Plus Stock Ownership Plan as of December
31, 1993 and 1992, and the related statements of income and changes in plan
equity for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial condition of the Parker-Hannifin
Employees' Savings Plus Stock Ownership Plan as of December 31, 1993 and
1992, and the results of its operations and changes in its plan equity for
the years then ended, in conformity with generally accepted accounting
principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule listed in the
accompanying index is presented for the purpose of a 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 audits
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.
COOPERS & LYBRAND
COOPERS & LYBRAND
Cleveland, Ohio
June 24, 1994
F-1
<PAGE>
THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN
STATEMENTS OF FINANCIAL CONDITION
CONSOLIDATED
- - - ------------ December 31, 1993 December 31, 1992
----------------- -----------------
Assets
Investments at market value (Notes 1 & 4) $ 320,531,439 $ 227,756,135
New York Life Annuity Contract (Note 1) 39,858,084
Certus Blended Pool (Note 1) 104,842,060 96,152,476
Contributions receivable 977,092 675,250
Investment income receivable 1,014,458 890,619
Other receivables 33,610 33,610
Total assets $ 427,398,659 $ 365,366,174
Liabilities & Plan Equity
Accrued benefit disbursements $ $ 280,906
Dividends payable to participants (Note 5) 2,042,676 1,721,051
Security purchases payable 87,863 616,138
Notes payable (Note 3) 31,367,000 41,895,000
Total liabilities 33,497,539 44,513,095
Plan equity 393,901,120 320,853,079
Total liabilities & plan equity $ 427,398,659 $ 365,366,174
STATEMENTS OF INCOME AND CHANGES IN PLAN EQUITY
Year ended Year ended
December 31, 1993 December 31, 1992
Contributions (Notes 1 & 2): ----------------- -----------------
Employees' payroll deductions $ 30,106,738 $ 28,560,721
Lump-sum contributions 60,922 72,285
Transfers of Profit Sharing Balances (Note 2) 9,651
Transfers from Other Plans (Note 2) 2,181,388
Total employees' contributions
and transfers 32,349,048 28,642,657
Employer's contributions 15,417,456 15,138,158
Interest income 14,871,923 14,574,682
Dividend income - net 2,187,877 2,444,769
Net appreciation (depreciation) in the fair
value of investments (Notes 1 & 4) 41,029,364 (712,955)
Withdrawals and terminations (29,069,292) (24,881,821)
Interest expense (Note 3) (3,307,612) (4,166,934)
Trustee fees and expenses (430,723) (311,575)
Increase in plan equity 73,048,041 30,726,981
Beginning plan equity 320,853,079 290,126,098
Ending plan equity $ 393,901,120 $ 320,853,079
The accompanying notes are an integral part of the financial statements.
F-2
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Investment Valuation
- - - --------------------
The investments in Parker Hannifin Corporation (the Company) common shares,
non-convertible corporate bonds, U.S. Government bonds, Society National
Bank Employee Benefits Value Equity Fund, Society National Bank
Government Mortgage Fund, Society National Bank Employee Benefits
Balanced Fund and the Franklin Institutional U.S. Securities Fund are valued
as of the last reported trade price on the last business day of the period.
The Parker Hannifin Employees' Savings Plus Stock Ownership Plan (the Plan)
presents in the Statement of Income and Changes in Plan Equity the net
appreciation (depreciation) in the fair value of its investments which
consists of the realized gains or losses from the sale of investments and
the unrealized appreciation (depreciation) on investments held by the Plan.
The investment in the Society National Bank Employee Benefits Money Market
Fund is valued at market value which equals cost.
The Group Annuity contract funds, which expired on December 31, 1993, were
held in the general funds of the New York Life Insurance Company and were
valued by them. The contract provided for guaranteed annual interest of
9.05% on contributions made during 1989. Upon contract expiration, the
funds were transferred to the blended pool portion in the Contract Income
Fund (formerly the Guaranteed Fund) managed by Certus Financial Corporation
consisting primarily of investment contracts issued by creditworthy
insurance companies and banks, unless participants specified that they be
transferred to another Savings Plan Fund.
Management believes that the Plan's investments are well diversified and do
not create a significant concentration of credit risk. Participants assume
all risk in connection with any decrease in the market price of any
securities in all the Funds. Although the annual rates of return with
respect to the contracts held in the Contract Income Fund are guaranteed by
major insurance and bank companies, the Company does not make any
representations as to the financial capability of such companies or their
ability to make payments under the contracts.
Contributions
- - - -------------
Contributions from employees and the Company are recorded in the period that
payroll deductions are made from Plan participants.
Other
- - - -----
Purchases of securities are recorded on a trade-date basis.
Dividend income is recorded on the ex-dividend date. Interest and other
income are recorded as earned on the accrual basis.
Costs incident to the purchase and sale of securities, such as brokerage
commissions and stock transfer taxes, are paid out of the assets of the
Funds to which they relate. All other costs and expenses incurred in
administering the Plan, including fees of the Trustee, are paid out of the
Plan's assets, unless the Company elects to pay such costs.
F-3
<PAGE>
NOTES TO FINANCIAL STATEMENTS (contd)
2. CONTRIBUTIONS AND TRANSFERS
Participant Payroll Deduction Contributions
- - - -------------------------------------------
A participant may elect to contribute, through payroll deductions, not less
that 1% nor more than 15% of his total compensation for a Plan year and may
change such percentage as of January 1, April 1, July 1, or October 1 of any
year. The amount which a highly compensated employee may contribute may be
limited in order to comply with IRC sections 401(k) and 401(m). A
participant may suspend his contributions at any time, but upon suspension
is not permitted to resume contributions until the January 1, April 1, July
1, or October 1 next following the completion of a six-month period
commencing on the date of such suspension. Upon enrollment or re-
enrollment, each participant stipulates his contributions to be invested in
accordance with the following investment options:
(a) 25% or 50% in the Company Stock Fund. The Company Stock Fund is
invested by the Trustee primarily in Common Shares of the Company purchased
on the open market.
(b) 25%, 50%, 75% or 100% in the Fixed Income Fund. The Fixed Income Fund
is invested by and at the discretion of the Trustee in Treasury bills,
bonds, preferred stocks, or other fixed income instruments of issuers other
than the Company.
(c) 25%, 50%, 75% or 100% in the Equity Fund. The Equity Fund is invested
by and at the discretion of the Trustee in common stock and other securities
convertible into common stock of issuers other than the Company.
(d) 25%, 50%, 75% or 100% in the Contract Income Fund. Investments in the
Contract Income Fund are invested and managed by Certus Financial
Corporation and invested in a pool of assets consisting primarily of
contracts providing for a guaranteed rate of return; the pool will provide a
blended rate of return from all the assets in the pool.
(e) 25%, 50%, 75% or 100% in the Balanced Fund. The Balanced Fund is
invested by and at the discretion of the Trustee primarily in bonds,
convertible securities, money market investments, and in common stocks of
issuers other than the Company.
Participant Lump-Sum Contributions
- - - ----------------------------------
Each year a participant may elect to make an annual voluntary lump-sum
contribution as of December 31, providing he is actively contributing to the
Plan. The amount of any lump-sum contribution, when added to a
participant's payroll deduction contributions during the plan year, may not
exceed an amount equal to 15% of his total compensation for the year. The
highly compensated employees may be prohibited from making such
contributions.
A participant's voluntary lump-sum contribution may be invested in the same
manner as payroll deduction contributions except that 25%, 50%, 75% or 100%
of such contribution may be invested in the Company Stock Fund.
Transfer of Profit-Sharing Account Balances
- - - -------------------------------------------
A participant who has a Profit-Sharing Account Balance under the Retirement
Plan may make an irrevocable election to have transferred his entire Account
Balance to the Plan. The Account Balance may be transferred as of January
1, April 1, July 1 or October 1 and may only be invested in the Contract
Income Fund under the Plan.
Transfers From Other Plans
- - - --------------------------
As a result of an acquisition, $2,181,388 was transferred into the Plan in
1993 from the account balances of the TRW Stock Savings Plan.
F-4
<PAGE>
NOTES TO FINANCIAL STATEMENTS (contd)
Transfers Among Savings Plan Funds
- - - ----------------------------------
As of any January 1, April 1, July 1, or October 1, any participant may
elect to transfer, in 25% increments, his account balances attributable to
his contributions invested in the Company Stock Fund, the Equity Fund, the
Fixed Income Fund, the Balanced Fund, or funds invested in the Contract
Income Fund after January 1, 1990, to one or more of the other Funds (except
transfers from the Contract Income Fund to the Fixed Income Fund may only
occur as of any January 1).
A participant age 55 or older, with 10 or more years of participation in the
Plan, may transfer a portion of the shares of stock in the ESOP Fund to any
of the other investment funds within the Plan. A transfer may be made as of
any April 1, July 1, October 1, and January 1. Only one transfer is
permitted for any year during this twelve-month period.
Parker Hannifin Corporation Contributions
- - - -----------------------------------------
The Company makes monthly contributions equal to 100% of each participant's
deferred compensation (before-tax) contributions attributable to the first
3% of his total compensation for a Plan year, plus 25% of his contributions
in excess of 3%, but not in excess of 5%, of his total compensation for such
year. In the event the participant makes only regular compensation (after-
tax) contributions, the Company matches the first 1% contributed at 50%, and
the excess, up to a total of 5% of the participant's total compensation, at
25%. The Company's matching contributions will be made only with respect to
participant contributions relating to the first 5% of the participant's
total compensation and Company contributions will match the before-tax
contributions prior to the after-tax contributions. With regards to lump-
sum contributions, the Company matches only participant contributions which,
when added to payroll deduction contributions for such Plan year, do not
exceed 5% of his total compensation for such year. Company contributions
are invested solely in the ESOP Fund.
Plan Participants
- - - -----------------
The number of active participants in each fund at December 31, 1993 and 1992
were as follows:
12/31/93 12/31/92
Company Stock Fund 3,807 4,035
Fixed Income Fund 3,265 2,987
Equity Fund 6,070 5,712
Contract Income Fund 8,247 9,236
Balanced Fund 2,911 2,211
The total number of participants in the Plan is less than the sum of the
number of participants shown above because many were participating in more
than one fund.
3. ESOP Fund Notes Payable
During May and June of 1989, the ESOP Fund borrowed $70 million to purchase
2.5 million shares of the Company's common stock on the open market.
Commencing July 1, 1989 and continuing over the period of the loan, the
shares purchased by the ESOP Fund will be allocated to participants making
contributions to the Plan (see Note 2). The ESOP Fund uses Company
contributions and cash dividends received on unallocated shares to repay the
loan plus interest (8.41% and 8.49% per annum for 1993 and 1992,
respectively). Graduated principal payments and related interest are due
semiannually, commencing December 31, 1989 and ending on July 1, 1996. The
loan is guaranteed by the Company. Principal amounts payable in the three
years ending December 31, 1994, through 1996 are $11,634,000, $12,838,000
and $6,895,000 respectively.
F-5
<PAGE>
NOTES TO FINANCIAL STATEMENTS (contd)
4. INVESTMENTS
<TABLE>
<CAPTION>
Investments held by the Plan at December 31, 1993 and 1992 are summarized
as follows:
December 31, 1993 December 31, 1992
Market Value Cost Market Value Cost
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Company Stock Fund
- - - ------------------
Parker-Hannifin Common Shares* $ 41,782,571 $ 27,414,874 $ 31,652,560 $ 26,213,556
Society National Bank Employee
Benefits Money Market Fund 447,554 447,554 587,821 587,821
Total 42,230,125 27,862,428 32,240,381 26,801,377
Fixed Income Fund
- - - -----------------
U.S. Government Securities** 15,984,440 15,889,651 10,078,033 9,620,853
Non-Convertible Corporate Bonds** 3,101,448 3,042,904 914,917 860,388
Society National Bank Employee
Benefits Money Market Fund 296,226 296,226 3,456,084 3,456,084
Society National Bank Employee
Benefits Government Mortgage
Fund 1,500,238 1,189,184
Total 19,382,114 19,228,781 15,949,272 15,126,509
Equity Fund
- - - -----------
Society National Bank Employee
Benefits Value Equity Fund 54,673,788 35,360,976 41,549,027 27,073,347
Society National Bank Employee
Benefits Money Market Fund 118,831 118,831 1,231,271 1,231,271
Total 54,792,619 35,479,807 42,780,298 28,304,618
Contract Income Fund
- - - --------------------
Society National Bank Employee
Benefits Money Market Fund 36,868,151 36,868,151 23,874,990 23,874,990
U.S. Government Securities** 18,062,183 18,281,448
Corporate Debt Instruments** 5,916,300 5,957,018
Franklin Institutional U.S.
Securities Fund 3,901,267 3,932,711
Total 60,846,634 61,106,617 27,776,257 27,807,701
Balanced Fund
- - - -------------
Society National Bank Employee
Benefits Value Equity Fund 10,391,768 10,325,023
Society National Bank Employee
Benefits Fixed Income Fund 6,890,042 6,883,342
Society National Bank Employee
Benefits Money Market Fund 39,786 39,786 1,694,826 1,694,826
Society National Bank Employee
Benefits Balanced Fund 6,905,314 6,414,742
Total 17,321,596 17,248,151 8,600,140 8,109,568
ESOP Fund
- - - ---------
Parker-Hannifin Common Shares*
Allocated 87,481,359 63,147,356 59,565,654 54,503,703
Unallocated 35,694,097 27,926,092 38,322,337 37,687,580
Society National Bank Employee
Benefits Money Market Fund 2,782,895 2,782,895 2,521,796 2,521,796
Total 125,958,351 93,856,343 100,409,787 94,713,079
Total Investments $320,531,439 $254,782,127 $227,756,135 $200,862,852
<FN>
* The number of Parker-Hannifin common shares held by the Plan were 4,385,195
at December 31, 1993 and 4,392,359 at December 31, 1992.
** The principal amounts of the U.S. Government Securities, Non-Convertible
Corporate Bonds and Corporate Debt held by the Plan were $42,680,088 at
December 31, 1993 and $10,535,000 at December 31, 1992.
</TABLE>
F-6
<PAGE>
NOTES TO FINANCIAL STATEMENTS (contd)
<TABLE>
<CAPTION>
The net realized gain (loss) on disposition of investments included in the
Plan equity is as follows:
Company Fixed Contract
Stock Income Equity Income Balanced ESOP
Fund Fund Fund Fund Fund Fund Total
----------- ------------ ------------ ------------- ------------ ------------ -------------
Year Ended December 31, 1993
- - - ----------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Selling price $ 4,982,930 $ 30,005,469 $ 10,309,037 $ 161,756,404 $ 38,048,862 $ 22,059,377 $ 267,162,079
Cost* 5,009,098 29,176,363 9,428,989 162,922,432 36,675,824 21,776,038 264,988,744
Realized gain (loss) $ (26,168) $ 829,106 $ 880,048 $ (1,166,028) 1,373,038 $ 283,339 $ 2,173,335
Year Ended December 31, 1992
- - - ----------------------------
Selling price $ 5,390,808 $ 6,529,553 $ 9,601,621 $ 43,719,123 6,419,252 $ 23,100,590 $ 94,760,947
Cost* 5,130,262 6,529,979 9,077,247 43,727,170 6,414,264 22,792,628 93,671,550
Realized gain (loss) $ 260,546 $ (426) $ 524,374 $ (8,047) 4,988 $ 307,962 $ 1,089,397
</TABLE>
<TABLE>
<CAPTION>
The net unrealized appreciation (depreciation) of investments included in the
Plan equity is as follows:
Company Fixed Contract
Stock Income Equity Income Balanced ESOP
Fund Fund Fund Fund Fund Fund Total
----------- ------------ ------------ ------------- ------------ ------------ -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at
December 31, 1991 $ 6,673,887 $ 774,411 $ 12,075,987 $ $ $ 9,171,350 $ 28,695,635
Change for the
fiscal period (1,234,883) 48,352 2,399,693 (31,444) 490,572 (3,474,642) (1,802,352)
Balance at
December 31, 1992 5,439,004 822,763 14,475,680 (31,444) 490,572 5,696,708 26,893,283
Change for the
fiscal period 8,928,693 (669,430) 4,837,132 (228,539) (417,127) 26,405,300 38,856,029
Balance at
December 31, 1993 $14,367,697 $ 153,333 $ 19,312,812 $ (259,983) $ 73,445 $ 32,102,008 $ 65,749,312
<FN>
*Cost of securities sold is determined on an average historical cost basis.
</TABLE>
F-7
<PAGE>
NOTES TO FINANCIAL STATEMENTS (contd)
5. VESTING, WITHDRAWALS AND DISTRIBUTIONS
A participant's interest in the Plan attributable to his own contributions
and Company contributions is fully vested at all times. A participant may
withdraw in cash a portion of his contributions, subject to certain
limitations and restrictions.
After a participant terminates employment for any reason, all amounts in his
separate accounts are distributed to him or, if he is deceased, to his
designated beneficiary. If his interest exceeds $3,500, he may defer his
distribution up to his attainment of age 70 1/2. Distribution is either in
a single payment or in quarterly installments or, if married, a 50% joint
and survivor annuity or, if single, a straight life annuity. Amounts held
in the Company Stock Fund and ESOP Fund are distributed in the form of
Common Shares or if the participant so elects, in the form of cash. Amounts
held in the Fixed Income, Equity, Contract Income or Balanced Funds are
distributed in the form of cash.
Dividends received by the ESOP Fund with respect to allocated Company shares
are paid annually to participants subsequent to the end of the plan year.
6. TAX STATUS
The United States Treasury Department advised on December 5, 1989, that the
Plan, as restated as of January 1, 1989, constitutes a qualified trust under
Section 401(a) of the Internal Revenue Code and is therefore exempt from
federal income taxes under provisions of Section 501(a).
Contributions matched by the Company and all earnings are not taxable until
distributed to the participants. Participants are allowed to make deferred
compensation contributions to the Plan in amounts up to 10% of their total
compensation but not to exceed $8,994 per year (adjusted annually for cost-
of-living increases), as mandated by the Tax Reform Act of 1986. Such
contributions are made in accordance with a salary reduction arrangement
under Section 401(k) of the Internal Revenue Code of 1986, as amended, and
are treated for federal income tax purposes as Company contributions.
Contributions by the highly compensated employees are limited by testing in
accordance with said section 401(k).
7. PLAN TERMINATION
The Company, by action of its Board of Directors, without further approval
by the shareholders, has the right to amend, modify, suspend, or terminate
the Plan in its entirety, or as to any subsidiary or operating location. No
amendment, modification, suspension, or termination shall provide that
assets held in trust by the Trustee may be used for or diverted to purposes
other than for the exclusive benefit of participants or their beneficiaries.
If the Plan is terminated, the Company contributions credited to each
affected participant shall continue to be fully vested.
8. LOAN PROVISION
Effective January 1, 1994 the Company added a loan provision to the Plan.
This allows an active participant to borrow a minimum of $500 up to a
maximum of a) 50% of his account balance or b) $50,000 minus the largest
outstanding loan balance he had in the last 12 months, whichever is less.
The loan must be repayed with interest equal to the prime rate plus 1% over
a period from 1 year to 4 1/2 years for a general purpose loan and up to ten
years for a residential loan. Once a loan is paid off, a participant must
wait a full 3 months before applying for another loan.
F-8
<PAGE>
NOTES TO FINANCIAL STATEMENTS (contd)
9. ACCOUNTING CHANGES
The American Institute of Certified Public Accountants' Audit and Accounting
Guide for Audits of Employee Benefits Plans, with conforming changes as of
May 1, 1993, no longer allows amounts allocated to accounts of persons who
have elected to withdraw from the Plan but have not yet been paid as of the
Plan's year end to be reflected as Plan liabilities in the Statements of
Financial Condition. The cumulative effect of such change was immaterial to
the financial statements. The amounts, by fund, that would have been
reflected as benefits payable at December 31, 1993 are as follows:
Company Stock $ 116,270
Fixed Income 81,940
Equity 84,425
Contract Income 500,006
Balanced 23,308
ESOP 269,884
Total $ 1,075,833
10. RECONCILIATION WITH FORM 5500
The Department of Labor requires that amounts owed to withdrawing but unpaid
former participants be classified as a plan liability on Form 5500, while
these amounts are not reported as a liability in the Statements of Financial
Condition. As a result, the following reconciliations were prepared:
Plan Equity per Form 5500 $ 392,825,287
Add: 1993 distributions payable that are allocated
but unpaid to former participants 1,075,833
Plan Equity per financial statements $ 393,901,120
Distributions to former participants per Form 5500 $ 30,145,125
Less: 1993 distributions payable that are allocated
but unpaid to former participants (1,075,833)
Distributions to former participants per
financial statements $ 29,069,292
11. ALLOCATION OF PLAN ACTIVITY AMONG INVESTMENT FUNDS
As described in Note 2, the participants may elect to invest their
contributions in five investment funds and Company contributions are
invested in the ESOP Fund. The allocation of assets, liabilities, income,
and changes in plan equity among the funds was as follows:
Fund Page No.
Company Stock F-10
Fixed Income F-11
Equity F-12
Contract Income F-13
Balanced F-14
ESOP F-15
F-9
<PAGE>
THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN
STATEMENTS OF FINANCIAL CONDITION
COMPANY STOCK FUND
- - - ------------------
December 31, 1993 December 31, 1992
----------------- -----------------
Assets
Investments at market value $ 42,230,125 $ 32,240,381
Contributions receivable 44,799 51,926
Investment income receivable 1,482 1,380
Other receivables 3,251 3,251
Total assets $ 42,279,657 $ 32,296,938
Liabilities & Fund Equity
Accrued benefit disbursements $ $ 27,011
Fund equity 42,279,657 32,269,927
Total liabilities & fund equity $ 42,279,657 $ 32,296,938
STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY
Year ended Year ended
December 31, 1993 December 31, 1992
Contributions: ----------------- -----------------
Employees' payroll deductions $ 3,439,537 $ 3,411,842
Lump-sum contributions 7,201 1,846
Transfers from other plans 201,450
Total employees' contributions and transfers 3,648,188 3,413,688
Transfers from other Savings Plan Funds 79,538 387,312
Interest income 11,639 11,340
Dividend income 1,064,212 1,013,617
Net appreciation (depreciation) in the fair
value of investments 8,902,525 (974,337)
Withdrawals and terminations (2,521,494) (2,791,563)
Trustee fees and expenses (19,675) (19,505)
Transfers to other Savings Plan Funds (1,155,203) (1,534,972)
Increase (decrease) in fund equity 10,009,730 (494,420)
Beginning fund equity 32,269,927 32,764,347
Ending fund equity $ 42,279,657 $ 32,269,927
F-10
<PAGE>
THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN
STATEMENTS OF FINANCIAL CONDITION
FIXED INCOME FUND
- - - -----------------
December 31, 1993 December 31, 1992
----------------- -----------------
Assets
Investments at market value $ 19,382,114 $ 15,949,272
Contributions receivable 118,331 76,403
Investment income receivable 316,714 203,631
Other receivables 30,359 30,359
Total assets $ 19,847,518 $ 16,259,665
Liabilities & Fund Equity
Accrued benefit disbursements $ $ 12,184
Fund equity 19,847,518 16,247,481
Total liabilities & fund equity $ 19,847,518 $ 16,259,665
STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY
Year ended Year ended
December 31, 1993 December 31, 1992
Contributions: ----------------- -----------------
Employees' payroll deductions $ 3,070,761 $ 2,582,730
Lump-sum contributions 6,380 2,755
Transfers from other plans 595,715
Total employees' contributions and transfers 3,672,856 2,585,485
Transfers from other Savings Plan Funds 375,317 1,992,480
Interest income 1,071,224 848,409
Net appreciation in the fair
value of investments 159,676 47,926
Withdrawals and terminations (1,448,286) (1,358,955)
Trustee fees and expenses (43,191) (34,771)
Transfers to other Savings Plan Funds (187,559) (114,743)
Increase in fund equity 3,600,037 3,965,831
Beginning fund equity 16,247,481 12,281,650
Ending fund equity $ 19,847,518 $ 16,247,481
F-11
<PAGE>
THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN
STATEMENTS OF FINANCIAL CONDITION
EQUITY FUND
- - - -----------
December 31, 1993 December 31, 1992
----------------- -----------------
Assets
Investments at market value $ 54,792,619 $ 42,780,298
Contributions receivable 199,971 80,270
Investment income receivable 137 133
Total assets $ 54,992,727 $ 42,860,701
Liabilities & Fund Equity
Accrued benefit disbursements $ $ 24,961
Fund equity 54,992,727 42,835,740
Total liabilities & fund equity $ 54,992,727 $ 42,860,701
STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY
Year ended Year ended
December 31, 1993 December 31, 1992
Contributions: ----------------- -----------------
Employees' payroll deductions $ 8,104,632 $ 7,068,451
Lump-sum contributions 25,677 12,197
Transfers from other plans 253,463
Total employees' contributions and transfers 8,383,772
Transfers from other Savings Plan Funds 1,839,135 2,230,802
Interest income 1,726 4,219
Net appreciation in the fair
value of investments 5,717,180 2,924,067
Withdrawals and terminations (3,437,061) (2,460,395)
Trustee fees and expenses (164,705) (131,894)
Transfers to other Savings Plan Funds (183,060) (517,350)
Increase in fund equity 12,156,987 9,130,097
Beginning fund equity 42,835,740 33,705,643
Ending fund equity $ 54,992,727 $ 42,835,740
F-12
<PAGE>
THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN
STATEMENTS OF FINANCIAL CONDITION
CONTRACT INCOME FUND
- - - --------------------
December 31, 1993 December 31, 1992
----------------- -----------------
Assets
Investments at market value $ 60,846,634 $ 27,776,257
New York Life Annuity Contract 39,858,084
Certus Blended Pool 104,842,060 96,152,476
Contributions receivable 25,835 12,602
Investment income receivable 665,433 658,759
Total assets $ 166,379,962 $ 164,458,178
Liabilities & Fund Equity
Accrued benefit disbursements $ $ 83,776
Security purchases payable 87,863 616,138
Total liabilities 87,863 699,914
Fund equity 166,292,099 163,758,264
Total liabilities & fund equity $ 166,379,962 $ 164,458,178
STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY
Year ended Year ended
December 31, 1993 December 31, 1992
Contributions: ----------------- -----------------
Employees' payroll deductions $ 11,331,729 $ 12,560,081
Lump-sum contributions 12,753 50,181
Transfers of Profit Sharing Balances 9,651
Transfers from other plans 906,519
Total employees' contributions and
transfers 12,251,001 12,619,913
Transfers from other Savings Plan Funds 900,064 931,036
Interest income 13,622,763 13,520,967
Net depreciation in the fair
value of investments (1,394,567) (39,491)
Withdrawals and terminations (17,739,703) (14,591,291)
Trustee fees and expenses (154,139) (106,844)
Transfers to other Savings Plan Funds (4,951,584) (8,517,256)
Increase in fund equity 2,533,835 3,817,034
Beginning fund equity 163,758,264 159,941,230
Ending fund equity $ 166,292,099 $ 163,758,264
F-13
<PAGE>
THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN
STATEMENTS OF FINANCIAL CONDITION
BALANCED FUND
- - - -------------
December 31, 1993 December 31, 1992
----------------- -----------------
Assets
Investments at market value $ 17,321,596 $ 8,600,140
Contributions receivable 190,929 87,127
Investment income receivable 5,698 85
Total assets $ 17,518,223 $ 8,687,352
Liabilities & Fund Equity
Accrued benefit disbursements $ $ 1,220
Fund equity 17,518,223 8,686,132
Total liabilities & fund equity $ 17,518,223 $ 8,687,352
STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY
Year ended Year ended
December 31, 1993 December 31, 1992
Contributions: ----------------- -----------------
Employees' payroll deductions $ 4,160,079 $ 2,937,617
Lump-sum contributions 8,911 5,306
Transfers from other plans 224,241
Total employees' contributions and transfers 4,393,231 2,942,923
Transfers from other Savings Plan Funds 3,875,617 5,601,522
Interest income 7,502 12,506
Net appreciation in the fair
value of investments 955,911 495,560
Withdrawals and terminations (349,879) (272,348)
Trustee fees and expenses (49,013) (18,561)
Transfers to other Savings Plan Funds (1,278) (75,470)
Increase in fund equity 8,832,091 8,686,132
Beginning fund equity 8,686,132
Ending fund equity $ 17,518,223 $ 8,686,132
F-14
<PAGE>
THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN
STATEMENTS OF FINANCIAL CONDITION
ESOP FUND
- - - ---------
December 31, 1993 December 31, 1992
----------------- -----------------
Assets
Investments at market value $ 125,958,351 $ 100,409,787
Contributions receivable 397,227 366,922
Investment income receivable 24,994 26,631
Total assets $ 126,380,572 $ 100,803,340
Liabilities & Fund Equity
Accrued benefit disbursements $ $ 131,754
Dividends payable to participants 2,042,676 1,721,051
Notes payable 31,367,000 41,895,000
Total liabilities 33,409,676 43,747,805
Fund equity 92,970,896 57,055,535
Total liabilities & fund equity $ 126,380,572 $ 100,803,340
STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY
Year ended Year ended
December 31, 1993 December 31, 1992
Contributions: ----------------- -----------------
Employer's contributions $ 15,417,456 $ 15,138,158
Transfers from other Savings Plan Funds 331 150,400
Interest income 157,069 177,241
Dividend income - net 1,123,665 1,431,152
Net appreciation (depreciation) in the
fair value of investments 26,688,639 (3,166,680)
Withdrawals and terminations (3,572,869) (3,407,269)
Interest expense (3,307,612) (4,166,934)
Transfers to other Savings Plan Funds (591,318) (533,761)
Increase in fund equity 35,915,361 5,622,307
Beginning fund equity 57,055,535 51,433,228
Ending fund equity $ 92,970,896 $ 57,055,535
F-15
<PAGE>
THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
for the year ended December 31, 1993
<TABLE>
<CAPTION>
The following schedule represents Plan transactions or series of transactions in excess of 5% of current value of Plan
assets for the year ended December 31, 1993.
Realized
Purchases Sales Cost Gain/(Loss)
Number of Number of
Transactions Dollars Transactions Dollars
------------------------ ------------------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
LESOP Allocated Fund
Society National Bank Employee
Benefits Money Market Fund * 23 $ 5,589,400 36 $ 5,328,301 $ 5,328,301 $ -
LESOP Unallocated Fund
Society National Bank Employee
Benefits Money Market Fund * 51 15,519,191 5 15,519,191 15,519,191 -
Fixed Income Fund
Society National Bank Employee
Benefits Money Market Fund * 75 14,194,632 60 17,354,490 17,354,490 -
Company Stock Fund
Society National Bank Employee
Benefits Money Market Fund * 56 4,620,457 52 4,760,725 4,760,725 -
Contract Income Fund
Society National Bank Employee
Benefits Money Market Fund * 144 96,025,026 100 83,031,866 83,031,866 -
Equity Fund
Society National Bank Employee
Benefits Money Market Fund * 67 6,760,714 59 7,873,154 7,873,154 -
Balanced Fund
Society National Bank Employee
Benefits Money Market Fund * 61 20,842,422 56 38,048,862 38,048,862 -
---------------------- --------------------- ------------- ------------
Total Money Market Fund 477 $ 163,551,842 368 $ 171,916,589 $ 171,916,589 $ -
Society National Bank Employee
Benefits Balanced Fund * 27 $ 15,544,214 $ 14,171,173 $ 1,373,041
New York Life Insurance
Contract GA-05218
9.05% due 12/31/93 26 $ 43,222,066 $ 43,222,066 $ -
<FN>
* Indicates party-in-interest to the Plan.
NOTE: There is no separate determination of expense related to the above transactions.
</TABLE>
F-16
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Administrator of the Plan has duly caused this Report to be signed on its
behalf by the undersigned, thereto duly authorized.
THE PARKER-HANNIFIN EMPLOYEES'
SAVINGS PLUS STOCK OWNERSHIP PLAN
PARKER-HANNIFIN CORPORATION
By: Michael J. Hiemstra
Michael J. Hiemstra
Vice President-Finance and
Administration and
Chief Financial Officer
June 24, 1994
