SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
[ X ] ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1994
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from ........... to ..............
Commission file number 1-4982
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 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
PAGE
Report of Independent Accountants F-1
Financial Statements:
Statements of Financial Condition at December 31, 1994 and 1993 F-2
Statements of Income and Changes in Plan Equity for the years
ended December 31, 1994 and 1993 F-2
Notes to Financial Statements F-3 to F-16
<PAGE>
Coopers Coopers & Lybrand L.L.P.
&Lybrand a professional services firm
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, 1994 and 1993, and the related statements of income and changes in plan
equity for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial condition of the Parker-Hannifin
Employees' Savings Plus Stock Ownership Plan as of December 31, 1994 and
1993, 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 additional
analysis and is not a required part of the basic financial statements but
is supplementary information required by the Department of Labor's Rules
and Regulations for Reporting and Disclosure under the Employee Retirement
Income Security Act of 1974. The supplemental schedule has been subjected
to the auditing procedures applied in the 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.
Cleveland, Ohio
June 26, 1995
F-1
<PAGE>
THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN
STATEMENTS OF FINANCIAL CONDITION
CONSOLIDATED
- ------------
December 31, 1994 December 31, 1993
----------------- -----------------
Assets
Investments at market value (Notes 1 & 4) $ 305,176,374 $ 296,425,483
Participant loans receivable 14,659,980
Certus Blended Pool (Note 1) 158,629,321 128,948,016
Contributions receivable 895,147 977,092
Investment income receivable 1,049,790 1,014,458
Security sales receivable 34,920
Other receivables 33,610 33,610
Total assets $ 480,479,142 $ 427,398,659
Liabilities & Plan Equity
Dividends payable to participants (Note 5) $ 2,394,461 $ 2,042,676
Security purchases payable 791,787 87,863
Notes payable (Note 3) 19,733,000 31,367,000
Total liabilities 22,919,248 33,497,539
Plan equity 457,559,894 393,901,120
Total liabilities & plan equity $ 480,479,142 $ 427,398,659
STATEMENTS OF INCOME AND CHANGES IN PLAN EQUITY
Year ended Year ended
December 31, 1994 December 31, 1993
----------------- -----------------
Contributions (Notes 1 & 2):
Employees' payroll deductions $ 32,662,751 $ 30,106,738
Lump-sum contributions 256,483 60,922
Transfers from other plans (Note 2) 364,557 2,181,388
Total employees' contributions
and transfers 33,283,791 32,349,048
Employer's contributions 16,341,467 15,417,456
Interest income 12,399,247 14,871,923
Dividend income - net 1,878,701 2,187,877
Net appreciation in the fair
value of investments (Notes 1 & 4) 32,983,650 41,029,364
Withdrawals and terminations (30,278,307) (29,069,292)
Interest expense (Note 3) (2,399,541) (3,307,612)
Trustee fees and expenses (550,234) (430,723)
Increase in plan equity 63,658,774 73,048,041
Beginning plan equity 393,901,120 320,853,079
Ending plan equity $ 457,559,894 $ 393,901,120
The accompanying notes are an integral part of the financial statements.
F-2
<PAGE>
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, Key Trust Employee
Benefits Value Equity Fund and the Key Trust Employee Benefits Fixed Income
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.
Investments in contracts issued by Certus and the Key Trust Employee
Benefits Money Market Fund are valued at market, which approximates cost.
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 with 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.
Company contributions are invested solely in the ESOP Fund.
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, as well as investment advisory fees,
are charged to the Funds to which they relate and netted against interest
income. 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.
Effective January 1, 1994 the Company added a loan provision to the Plan.
This allows an active participant to borrow a minimum of $500 and up to a
maximum of a) 50% of their account balance or b) $50,000 minus the
largest outstanding loan balance they had in the last 12 months,
whichever is less. The loan must be repaid, with interest equal to the
prime rate at the time the loan is entered into 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.
RECLASSIFICATIONS
Certain items in the prior year financial statements have been reclassified
to conform to the current year presentation.
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 contracted 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 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 his entire account balance
transferred 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 acquisitions, $364,557 in 1994 and $2,181,388 in 1993, was
transferred into the Plan from the account balances of the LDI Pneutronics
and the TRW Stock Savings Plan, respectively.
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 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 during any 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, 1994 and
1993 are as follows:
1994 1993
----- -----
Company Stock Fund 4,046 3,807
Fixed Income Fund 3,307 3,265
Equity Fund 6,591 6,070
Contract Income Fund 7,717 8,247
Balanced Fund 3,311 2,911
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% per annum for 1994 and 1993). Graduated
principal payments and related interest are due semiannually, commencing
December 31, 1989 and ending on June 30, 1996. The loan is guaranteed by
the Company. Principal amounts payable in the years ending December 31,
1995 and 1996 are $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, 1994 and 1993 are summarized
as follows:
December 31, 1994 December 31, 1993
Market Value Cost Market Value Cost
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
Company Stock Fund
- ------------------
Key Trust Employee Benefits
Money Market Fund $ 745,563 $ 745,563 $ 447,554 $ 447,554
Parker-Hannifin Common Shares* 46,160,736 25,515,852 41,782,571 27,414,874
Total 46,906,299 26,261,415 42,230,125 27,862,428
Fixed Income Fund
- -----------------
Key Trust Employee Benefits
Money Market Fund 4,058,714 4,058,714 296,226 296,226
U.S. Government Securities** 12,017,627 12,997,776 15,984,440 15,889,651
Non-Convertible
Corporate Bonds** 4,104,953 4,287,354 3,101,448 3,042,904
Total 20,181,294 21,343,844 19,382,114 19,228,781
Equity Fund
- -----------
Key Trust Employee Benefits
Money Market Fund 346,502 346,502 118,831 118,831
Key Trust Employee Benefits
Value Equity Fund 60,988,910 41,853,579 54,673,788 35,360,976
Total 61,335,412 42,200,081 54,792,619 35,479,807
Contract Income Fund
- --------------------
Key Trust Employee Benefits
Money Market Fund 6,179,884 6,179,884 36,740,678 36,740,678
Total 6,179,884 6,179,884 36,740,678 36,740,678
Balanced Fund
- -------------
Key Trust Employee Benefits
Money Market Fund 158,512 158,512 39,786 39,786
Key Trust Employee Benefits
Value Equity Fund 13,318,526 13,002,686 10,391,768 10,325,023
Key Trust Employee Benefits
Fixed Income Fund 8,502,034 8,653,229 6,890,042 6,883,342
Total 21,979,072 21,814,427 17,321,596 17,248,151
ESOP Fund
- ---------
Key Trust Employee Benefits
Money Market Fund 3,742,100 3,742,100 2,782,895 2,782,895
Parker-Hannifin Common Shares*
Allocated 118,470,639 71,721,711 87,481,359 63,147,356
Unallocated 26,381,674 17,668,734 35,694,097 27,926,092
Total 148,594,413 93,132,545 125,958,351 93,856,343
Total Investments $ 305,176,374 $ 210,932,196 $ 296,425,483 $ 230,416,188
Contract Income Fund
- --------------------
Certus Blended Pool $ 158,629,321 $ 158,629,321 $ 128,948,016 $ 129,207,999
<FN>
* The number of Parker-Hannifin common shares held by the Plan were
4,210,904 at December 31, 1994 and 4,385,195 at December 31, 1993.
**The principal amounts of the U.S. Government Securities, Non-Convertible
Corporate Bonds and Corporate Debt held by the Plan were $16,973,720 at
December 31, 1994 and $18,480,088 at December 31, 1993.
</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, 1994
- ----------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Selling price $ 12,085,110 $ 9,569,472 $ 15,110,956 $ 75,448,242 $ 7,202,794 $ 28,778,421 $148,194,995
Cost* 10,239,542 9,665,838 13,809,017 75,443,070 7,203,931 27,344,813 143,706,211
Realized gain (loss) $ 1,845,568 $ (96,366) $ 1,301,939 $ 5,172 $ (1,137) $ 1,433,608 $ 4,488,784
Year Ended December 31, 1993
- ----------------------------
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
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, 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
Change for
the fiscal period 6,277,187 (1,315,883) (177,481) 259,983 91,200 23,359,860 28,494,866
Balance at
December 31, 1994 $ 20,644,884 $(1,162,550) $ 19,135,331 $ - $ 164,645 $ 55,461,868 $ 94,244,178
<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 to participants subsequent to the end of each 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 $9,240 in 1994 and $8,994 in 1993 (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. 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 1993 financial statements.
F-8
<PAGE>
NOTES TO FINANCIAL STATEMENTS (contd)
8. ACCOUNTING CHANGES (contd)
The amounts, by fund, that would have been reflected as benefits payable at
December 31, 1993 are as follows:
1993
-----------
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
9. 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:
1994 1993
------------- -------------
Plan Equity per Form 5500 $ 455,848,656 $ 392,825,287
Distributions payable that are allocated
but unpaid to former participants 1,711,238 1,075,833
Plan Equity per financial statements $ 457,559,894 $ 393,901,120
Distributions to former participants
per Form 5500 $ 30,913,712 $ 30,145,125
Distributions payable that are allocated
but unpaid to former participants (1,711,238) (1,075,833)
Prior year distributions payable that
were paid to former participants in
the current year 1,075,833 -
Distributions to former participants per
financial statements $ 30,278,307 $ 29,069,292
10. ASSET ALLOCATION
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 follows on pages F-10 through
F-16.
F-9
<PAGE>
THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN
STATEMENTS OF FINANCIAL CONDITION
COMPANY STOCK FUND
- ------------------
December 31, 1994 December 31, 1993
----------------- -----------------
Assets
Investments at market value $ 46,906,299 $ 42,230,125
Contributions receivable 70,584 44,799
Investment income receivable 3,366 1,482
Other receivables 3,251 3,251
Total assets $ 46,983,500 $ 42,279,657
Liabilities & Fund Equity
Security purchases payable $ 359,674 $
Total liabilities 359,674
Fund equity 46,623,826 42,279,657
Total liabilities & fund equity $ 46,983,500 $ 42,279,657
STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY
Year ended Year ended
December 31, 1994 December 31, 1993
----------------- -----------------
Contributions:
Employees' payroll deductions $ 3,658,367 $ 3,439,537
Lump-sum contributions 43,873 7,201
Transfers from other plans 26,115 201,450
Total employees' contributions 3,728,355 3,648,188
and transfers
Transfers from other Savings Plan Funds 760,170 79,538
Interest income 23,394 11,639
Dividend income 1,065,064 1,064,212
Net appreciation in the fair
value of investments 8,122,755 8,902,525
Withdrawals and terminations (2,957,562) (2,521,494)
Trustee fees and expenses (23,419) (19,675)
Transfers to other Savings Plan Funds (6,374,588) (1,155,203)
Increase in fund equity 4,344,169 10,009,730
Beginning fund equity 42,279,657 32,269,927
Ending fund equity $ 46,623,826 $ 42,279,657
F-10
<PAGE>
THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN
STATEMENTS OF FINANCIAL CONDITION
FIXED INCOME FUND
- -----------------
December 31, 1994 December 31, 1993
----------------- -----------------
Assets
Investments at market value $ 20,181,294 $ 19,382,114
Contributions receivable 75,837 118,331
Investment income receivable 312,876 316,714
Other receivables 30,359 30,359
Total assets $ 20,600,366 $ 19,847,518
Liabilities & Fund Equity
Fund equity $ 20,600,366 $ 19,847,518
Total liabilities & fund equity $ 20,600,366 $ 19,847,518
STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY
Year ended Year ended
December 31, 1994 December 31, 1993
----------------- -----------------
Contributions:
Employees' payroll deductions $ 3,262,850 $ 3,070,761
Lump-sum contributions 17,861 6,380
Transfers from other plans 47,877 595,715
Total employees' contributions
and transfers 3,328,588 3,672,856
Transfers from other Savings Plan Funds 1,028,331 375,317
Interest income 1,221,043 1,071,224
Net (depreciation) appreciation in
the fair value of investments (1,412,249) 159,676
Withdrawals and terminations (1,437,396) (1,448,286)
Trustee fees and expenses (44,573) (43,191)
Transfers to other Savings Plan Funds (1,930,896) (187,559)
Increase in fund equity 752,848 3,600,037
Beginning fund equity 19,847,518 16,247,481
Ending fund equity $ 20,600,366 $ 19,847,518
F-11
<PAGE>
THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN
STATEMENTS OF FINANCIAL CONDITION
EQUITY FUND
- -----------
December 31, 1994 December 31, 1993
----------------- -----------------
Assets
Investments at market value $ 61,335,412 $ 54,792,619
Contributions receivable 182,699 199,971
Investment income receivable 2,019 137
Total assets $ 61,520,130 $ 54,992,727
Liabilities & Fund Equity
Fund equity $ 61,520,130 $ 54,992,727
Total liabilities & fund equity $ 61,520,130 $ 54,992,727
STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY
Year ended Year ended
December 31, 1994 December 31, 1993
----------------- -----------------
Contributions:
Employees' payroll deductions $ 10,084,086 $ 8,104,632
Lump-sum contributions 35,600 25,677
Transfers from other plans 73,561 253,463
Total employees' contributions
and transfers 10,193,247 8,383,772
Transfers from other Savings Plan Funds 3,288,501 1,839,135
Interest income 9,569 1,726
Net appreciation in the fair
value of investments 1,124,458 5,717,180
Withdrawals and terminations (3,468,944) (3,437,061)
Trustee fees and expenses (177,235) (164,705)
Transfers to other Savings Plan Funds (4,442,193) (183,060)
Increase in fund equity 6,527,403 12,156,987
Beginning fund equity 54,992,727 42,835,740
Ending fund equity $ 61,520,130 $ 54,992,727
F-12
<PAGE>
THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN
STATEMENTS OF FINANCIAL CONDITION
CONTRACT INCOME FUND
- --------------------
December 31, 1994 December 31, 1993
----------------- -----------------
Assets
Investments at market value $ 6,179,884 $ 36,740,678
Certus Blended Pool 158,629,321 128,948,016
Contributions receivable 41,803 25,835
Investment income receivable 681,597 665,433
Security sales receivable 34,920
Total assets $ 165,567,525 $ 166,379,962
Liabilities & Fund Equity
Security purchases payable $ 432,113 $ 87,863
Total liabilities 432,113 87,863
Fund equity 165,135,412 166,292,099
Total liabilities & fund equity $ 165,567,525 $ 166,379,962
STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY
Year ended Year ended
December 31, 1994 December 31, 1993
----------------- -----------------
Contributions:
Employees' payroll deductions $ 10,615,311 $ 11,331,729
Lump-sum contributions 150,708 12,753
Transfers from other plans 194,938 906,519
Total employees' contributions
and transfers 10,960,957 12,251,001
Transfers from other Savings Plan Funds 3,945,114 900,064
Interest income 10,353,520 13,622,763
Net appreciation (depreciation) in
the fair value of investments 265,155 (1,394,567)
Withdrawals and terminations (14,715,938) (17,739,703)
Trustee fees and expenses (240,743) (154,139)
Transfers to other Savings Plan Funds (11,724,752) (4,951,584)
(Decrease) increase in fund equity (1,156,687) 2,533,835
Beginning fund equity 166,292,099 163,758,264
Ending fund equity $ 165,135,412 $ 166,292,099
F-13
<PAGE>
THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN
STATEMENTS OF FINANCIAL CONDITION
BALANCED FUND
- -------------
December 31, 1994 December 31, 1993
----------------- -----------------
Assets
Investments at market value $ 21,979,072 $ 17,321,596
Contributions receivable 99,575 190,929
Investment income receivable 1,526 5,698
Total assets $ 22,080,173 $ 17,518,223
Liabilities & Fund Equity
Fund equity $ 22,080,173 $ 17,518,223
Total liabilities & fund equity $ 22,080,173 $ 17,518,223
STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY
Year ended Year ended
December 31, 1994 December 31, 1993
----------------- -----------------
Contributions:
Employees' payroll deductions $ 5,042,137 $ 4,160,079
Lump-sum contributions 8,441 8,911
Transfers from other plans 22,066 224,241
Total employees' contributions
and transfers 5,072,644 4,393,231
Transfers from other Savings Plan Funds 2,219,126 3,875,617
Interest income 7,961 7,502
Net appreciation in the fair
value of investments 90,063 955,911
Withdrawals and terminations (1,131,326) (349,879)
Trustee fees and expenses (64,264) (49,013)
Transfers to other plans
Transfers to other Savings Plan Funds (1,632,254) (1,278)
Increase in fund equity 4,561,950 8,832,091
Beginning fund equity 17,518,223 8,686,132
Ending fund equity $ 22,080,173 $ 17,518,223
F-14
<PAGE>
THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN
STATEMENTS OF FINANCIAL CONDITION
LOAN FUND
- ---------
December 31, 1994
-----------------
Assets
Participant Loans Receivable $ 14,659,980
Total assets $ 14,659,980
Liabilities & Fund Equity
Fund equity $ 14,659,980
Total liabilities & fund equity $ 14,659,980
STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY
Year ended
December 31, 1994
-----------------
Transfers from other Savings
Plan Funds $ 17,347,100
Interest income 537,177
Withdrawals and terminations (354,616)
Transfers to other Savings Plan Funds (2,869,681)
Increase in fund equity 14,659,980
Beginning fund equity -
Ending fund equity $ 14,659,980
F-15
<PAGE>
THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN
STATEMENTS OF FINANCIAL CONDITION
ESOP FUND
- ---------
December 31, 1994 December 31, 1993
----------------- -----------------
Assets
Investments at market value $ 148,594,413 $ 125,958,351
Contributions receivable 424,649 397,227
Investment income receivable 48,406 24,994
Total assets $ 149,067,468 $ 126,380,572
Liabilities & Fund Equity
Dividends payable to participants $ 2,394,461 $ 2,042,676
Notes payable 19,733,000 31,367,000
Total liabilities 22,127,461 33,409,676
Fund equity 126,940,007 92,970,896
Total liabilities & fund equity $ 149,067,468 $ 126,380,572
STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY
Year ended Year ended
December 31, 1994 December 31, 1993
----------------- -----------------
Contributions:
Employer's contributions $ 16,341,467 $ 15,417,456
Transfers from other Savings Plan Funds 1,493,719 331
Interest income 246,583 157,069
Dividend income - net 813,637 1,123,665
Net appreciation in the fair
value of investments 24,793,468 26,688,639
Withdrawals and terminations (6,212,525) (3,572,869)
Interest expense (2,399,541) (3,307,612)
Transfers to other Savings Plan Funds (1,107,697) (591,318)
Increase in fund equity 33,969,111 35,915,361
Beginning fund equity 92,970,896 57,055,535
Ending fund equity $ 126,940,007 $ 92,970,896
F-16
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Administrator of the Plan has duly caused this annual report
to be signed on its behalf by the undersigned hereunto duly authorized.
THE PARKER-HANNIFIN EMPLOYEES'
SAVINGS PLUS STOCK OWNERSHIP PLAN
BY: ______Michael J. Hiemstra______________
Michael J. Hiemstra
Vice President-Finance & Administration
& Chief Financial Officer
June 26, 1995
