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, 1995
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, 1995 and 1994 F-2
Statements of Income and Changes in Plan Equity for the years
ended December 31, 1995 and 1994 F-2
Notes to Financial Statements F-3 to F-17
<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, 1995 and 1994, 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, 1995 and 1994,
and the results of its operations and changes in its plan equity for the years
then ended, in conformity with generally accepted accounting principles.
Coopers & Lybrand L.L.P.
Cleveland, Ohio
June 26, 1996
F-1
<PAGE>
THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN
STATEMENTS OF FINANCIAL CONDITION
CONSOLIDATED
____________
December 31,
_____________________________
1995 1994
Assets
Investments at market value (Notes 1 & 4) $ 391,593,876 $ 305,176,374
Participant loans receivable 16,581,558 14,659,980
Investment contracts (Notes 1 & 5) 155,287,642 158,629,321
Contributions receivable 848,436 895,147
Investment income receivable 905,905 1,049,790
Security sales receivable 186 34,920
Other receivables 3,251 33,610
_____________ _____________
Total assets $ 565,220,854 $ 480,479,142
============= =============
Liabilities & Plan Equity
Dividends payable to participants (Note 6) $ 2,885,266 $ 2,394,461
Security purchases payable 447,208 791,787
Notes payable (Note 3) 6,895,000 19,733,000
_____________ _____________
Total liabilities 10,227,474 22,919,248
Plan equity 554,993,380 457,559,894
_____________ _____________
Total liabilities & plan equity $ 565,220,854 $ 480,479,142
============= =============
STATEMENTS OF INCOME AND CHANGES IN PLAN EQUITY
Year ended December 31,
______________________________
1995 1994
Contributions (Notes 1 & 2):
Employees' payroll deductions $ 39,120,731 $ 32,662,751
Lump-sum contributions 61,853 256,483
Transfers from other plans (Note 2) - 364,557
_____________ _____________
Total employees' contributions and transfers 39,182,584 33,283,791
Employer's contributions 18,200,977 16,341,467
Interest income 13,498,568 12,399,247
Dividend income - net 1,587,546 1,878,701
Net appreciation in the fair
value of investments (Notes 1 & 4) 57,593,264 32,983,650
Withdrawals and terminations (30,551,247) (30,278,307)
Interest expense (Note 3) (1,396,102) (2,399,541)
Trustee fees and expenses (682,104) (550,234)
_____________ _____________
Increase in plan equity 97,433,486 63,658,774
Beginning plan equity 457,559,894 393,901,120
_____________ _____________
Ending plan equity $ 554,993,380 $ 457,559,894
============= =============
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, 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 the Key Trust Employee Benefits Money Market Fund are
valued at market, which approximates cost. Refer to Note 5 for additional
information relating to funds held by Certus in the Contract Income 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.
Company contributions are invested solely in the ESOP Fund, which holds
Company stock and some cash.
OTHER
Purchases and sales of securities are reflected 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.
The Plan has a loan provision which allows an active participant to borrow
a minimum of $500 and 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 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. Refer to Note 11 for changes effective
in 1996.
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles requires management to make estimates
and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results could differ from those
estimates.
Participants should refer to the summary plan description or the plan
agreement for more complete information.
STOCK SPLIT
On April 13, 1995 the Board of Directors authorized a 3-for-2 split of the
Company's common shares, paid June 2, 1995. All per share amounts in the
financial statements and notes thereto have been restated to give effect
to the 3-for-2 split.
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 than 1% nor more than 15% of his total compensation for a Plan year
and, beginning in 1996, may change such percentage upon request. The
amount which a highly compensated employee may contribute may be limited
in order to comply with Internal Revenue Code sections 401(k) and 401(m).
A participant may suspend his contributions at any time. Upon enrollment
or re-enrollment, each participant stipulates his contributions to be
invested in accordance with the following investment options:
(a) Company Stock Fund - Invested primarily in Common Shares of the
Company purchased on the open market. A participant's contribution
is limited to 50% invested in this fund.
(b) Fixed Income Fund - Invested primarily in securities which have a
fixed rate of return such as government and high-quality corporate
bills, notes, bonds, and other similar investments of issuers other
than the Company.
(c) Equity Fund - Invested primarily in common stock of high-quality
medium and large capitalization companies other than the Company.
(d) Contract Income Fund - Invested primarily in high-quality fixed
income investments such as contracts issued by insurance companies
and banks which provide a return guaranteed by the issuer, and debt
securities such as notes and bonds issued by Federal agencies or
mortgage backed securities, with each of these investments
typically providing a stable rate of return for a specific period
of time. Refer to Note 5 for a description of assets managed by
Certus.
(e) Balanced Fund - Invested primarily in bonds, convertible
securities, money market investments, and common stocks of high-
quality medium and large capitalization companies other than the
Company.
(f) Small Capitalization Fund (Available January 1, 1996) - Invested
primarily in equity securities of small companies that have
demonstrated or have the potential for above-average capital
growth.
(g) International Fund (Available January 1, 1996) - Invested primarily
in common stocks, preferred stocks, warrants and rights to
subscribe to common stocks on non-U.S. issuers.
(h) S&P 500 Index Fund (Available January 1, 1996) - Invested in stocks
which comprise the S&P 500 Index, most of which are listed on the
New York Stock Exchange.
PARTICIPANT LUMP-SUM CONTRIBUTIONS
Through December 31, 1995 a participant could elect to make an annual
voluntary lump-sum contribution as of year end, 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, could not exceed an amount equal to
15% of his total compensation for the year. The highly compensated
employees may have been prohibited from making such contributions. A
participant's voluntary lump-sum contribution could be invested in the
same manner as payroll deduction contributions except that up to 100%
of such contribution could be invested in the Company Stock Fund. The
right to make a voluntary lump sum contribution has been eliminated
beginning with the 1996 Plan year.
TRANSFER OF PROFIT-SHARING ACCOUNT BALANCES
A participant who has an account attributable to the old Profit-Sharing
Plan (replaced by the Retirement Plan) may make an irrevocable election
to have his entire account balance transferred to the Plan. The
account balance may be transferred upon request.
F-4
<PAGE>
NOTES TO FINANCIAL STATEMENTS (contd)
TRANSFERS FROM OTHER PLANS
As a result of an acquisition in 1994, $364,557 was transferred into
the Plan from the account balances of the LDI Pneutronics Stock Savings
Plan.
TRANSFERS AMONG SAVINGS PLAN FUNDS
A participant may elect to reallocate, upon request, his account balances
attributable to his contributions invested in any Fund (other than the
ESOP Fund) to one or more of the other Funds. Prior to 1996, any such
change could be made quarterly. Effective in 1996, such changes may be
made daily.
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. Beginning in 1996, such
transfer may be made anytime during the year.
PARKER-HANNIFIN CORPORATION CONTRIBUTIONS
The Company makes monthly matching contributions equal to the first 5% of
a participant's deferred compensation (before-tax) contributions. The
Company contributes an amount equal to 100% of the first 3% of the monthly
before-tax contributions and an amount equal to 25% of the 4% and 5% of
the contribution. If the contribution is on an after-tax basis only, the
Company contributes an amount equal to 50% of the first 1% of the after-
tax contribution and 25% of the next 2%, 3%, 4%, and 5% of the
contribution. Company contributions will match the before-tax
contributions prior to the after-tax contributions. With regards to lump-
sum contributions made through 1995, 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.
Effective in 1996, the Company will eliminate the match on the first 3% of
after-tax contribution and will match only the 4% and 5% at 25%.
PLAN PARTICIPANTS
The number of active participants in each fund at December 31, 1995 and
1994 are as follows:
1995 1994
_____ _____
Company Stock Fund 6,051 4,046
Fixed Income Fund 3,597 3,307
Equity Fund 8,139 6,591
Contract Income Fund 7,702 7,717
Balanced Fund 3,908 3,311
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 3.75 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 are being 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 1995 and
1994). 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. The principal amount payable in
the year ending December 31, 1996 is $6,895,000.
F-5
<PAGE>
NOTES TO FINANCIAL STATEMENTS (contd)
4. INVESTMENTS
<TABLE>
<CAPTION>
Investments held by the Plan at December 31, 1995 and 1994 are summarized
as follows:
December 31, 1995 December 31, 1994
_____________________________ _____________________________
Market Value Cost Market Value Cost
<S> <C> <C> <C> <C>
Company Stock Fund
__________________
Key Trust Employee Benefits
Money Market Fund $ 519,372 $ 519,372 $ 745,563 $ 745,563
Parker-Hannifin Common Shares* 56,391,221 30,557,724 46,160,736 25,515,852
_____________ _____________ _____________ _____________
Total 56,910,593 31,077,096 46,906,299 26,261,415
_____________ _____________ _____________ _____________
Fixed Income Fund
_________________
Key Trust Employee Benefits
Money Market Fund 548,845 548,845 4,058,714 4,058,714
U.S. Government Securities** 18,600,406 17,947,389 12,017,627 12,997,776
Non-Convertible Corporate Bonds** 6,217,809 6,110,887 4,104,953 4,287,354
_____________ _____________ _____________ _____________
Total 25,367,060 24,607,121 20,181,294 21,343,844
_____________ _____________ _____________ _____________
Equity Fund
___________
Key Trust Employee Benefits
Money Market Fund - - 346,502 346,502
Value Equity Fund 95,862,263 54,426,496 60,988,910 41,853,579
_____________ _____________ _____________ _____________
Total 95,862,263 54,426,496 61,335,412 42,200,081
_____________ _____________ _____________ _____________
Contract Income Fund
____________________
Key Trust Employee Benefits
Money Market Fund 14,609,536 14,609,536 6,179,884 6,179,884
_____________ _____________ _____________ _____________
Total 14,609,536 14,609,536 6,179,884 6,179,884
_____________ _____________ _____________ _____________
Balanced Fund
_____________
Key Trust Employee Benefits
Money Market Fund - - 158,512 158,512
Key Trust Employee Benefits
Value Equity Fund 21,166,896 15,871,671 13,318,526 13,002,686
Key Trust Employee Benefits
Fixed Income Fund 11,971,679 10,507,590 8,502,034 8,653,229
_____________ _____________ _____________ _____________
Total 33,138,575 26,379,261 21,979,072 21,814,427
_____________ _____________ _____________ _____________
ESOP Fund
_________
Key Trust Employee Benefits
Money Market Fund 4,987,792 4,987,792 3,742,100 3,742,100
Parker-Hannifin Common Shares*
Allocated 149,536,973 80,354,809 118,470,639 71,721,711
Unallocated 11,181,084 7,510,710 26,381,674 17,668,734
_____________ _____________ _____________ _____________
Total 165,705,849 92,853,311 148,594,413 93,132,545
_____________ _____________ _____________ _____________
Total Investments $ 391,593,876 $ 243,952,821 $ 305,176,374 $ 210,932,196
============= ============= ============= =============
Contract Income Fund
____________________
Investment contracts $ 155,287,642 $ 155,287,642 $ 158,629,321 $ 158,629,321
============= ============= ============= =============
<FN>
* The number of Parker-Hannifin common shares held by the Plan were
6,960,706 at December 31, 1995 and 6,316,356 at December 31, 1994.
** The principal amounts of the U.S. Government Securities,
Non-Convertible Corporate Bonds held by the Plan were $23,541,079 at
December 31, 1995 and $16,973,720 at December 31, 1994.
</FN>
</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
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended December 31, 1995
Selling price $ 12,065,247 $ 24,803,683 $ 16,226,629 $ 42,486,268 $ 6,299,761 $ 30,462,561 $ 132,344,149
Cost* 10,728,720 25,087,417 15,003,111 42,486,268 6,124,555 28,717,691 128,147,762
____________ ____________ ____________ ____________ ___________ ____________ _____________
Realized gain (loss) $ 1,336,527 $ (283,734) $ 1,223,518 - $ 175,206 $ 1,744,870 $ 4,196,387
============ ============ ============ ============ =========== ============ =============
Year Ended December 31, 1994
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
============ ============ ============ ============ =========== ============ =============
</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, 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 8,494,866
____________ ____________ ____________ ____________ ___________ ____________ _____________
Balance at December 31, 1994 20,644,884 (1,162,550) 19,135,331 - 164,645 55,461,868 94,244,178
Change for the fiscal period 5,188,613 1,922,489 22,300,436 - 6,594,669 17,390,670 53,396,877
____________ ____________ ____________ ____________ ___________ ____________ _____________
Balance at December 31, 1995 $ 25,833,497 $ 759,939 $ 41,435,767 $ - $ 6,759,314 $ 72,852,538 $ 147,641,055
============ ============ ============ ============ =========== ============ =============
<FN>
* Cost of securities sold is determined on an average historical cost basis.
</FN>
</TABLE>
F-7
<PAGE>
NOTES TO FINANCIAL STATEMENTS (contd)
5. CONTRACT INCOME FUND
Reported in the aggregate for the Contract Income Fund at December 31:
1995 1994
------------- -------------
Contract Value of Assets $ 169,961,276 $ 165,135,412
Fair Value of Assets $ 172,323,519 $ 157,477,576
Average Yield of Assets 6.35% 6.51%
Return on assets for the
12 months ended December 31 6.44% 6.52%
Duration 2.38 years 2.72 years
The above information is provided in compliance with the AICPA Statement
of Position 94-4 (SOP 94-4). SOP 94-4 requires that fair value be based
upon the standard discounted cash flow methodology as referred to in the
Statement of Financial Accounting Standards No. 107. To arrive at the
above aggregate fair value, comparable duration Wall Street Journal
Guaranteed Investment Contract (GIC) Index rates were used as the discount
factor within the discounted cash flow formula. A standard present value
calculation has been employed to arrive at a current value for each cash
flow within a contract. The sum of the present values for each contract's
cash flows is the estimated total fair value for that contract. All of
the contract fair values are then added together to arrive at the above
aggregate fair value for the portfolio.
The Contract Income Fund contains a managed synthetic GIC. This is a
portfolio of securities owned by the Fund with a benefit-responsive, book-
value "wrap" contract associated with the portfolio. The wrap contract
assures that book-value, benefit-responsive payments can be made for
participant withdrawals. The managed synthetic GIC included in the above
amounts at December 31, 1995 and 1994 had a contract value of $44,176,639
and $41,790,738, while the fair value was $44,678,558 and $38,463,187,
respectively. The crediting rate on the managed synthetic GIC resets at
least quarterly and will have an interest rate of no less than 0%.
The Contract Income Fund contains non-benefit responsive contracts. SOP
94-4 recommends that these contracts be carried at a fair value. However,
the Fund's non-benefit responsive contracts are not a large enough
representation of the portfolio (1.6% and 3.4% at December 31, 1995 and
1994) to result in a material impact on the Contract Income Fund.
Therefore, these contracts have been reported at contract value in the
financial statements.
It is important to note that, in the absence of an actively traded market,
discounted cash flows are only an estimate of the contract's economic
value. These values are not a useful value for participant statement
purposes nor are they representative of the value which may be received
from these contracts in either a participant disbursement or an early
termination of the contract.
6. 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 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,
quarterly installments or, by purchase of an annuity. Amounts held in the
Company Stock Fund and ESOP Fund are distributed in the form of Common
Shares or cash, as the participant elects. All other amounts are
distributed in the form of cash or annuity.
Dividends received by the ESOP Fund with respect to allocated Company
shares are paid to participants subsequent to the end of each plan year.
F-8
<PAGE>
NOTES TO FINANCIAL STATEMENTS (contd)
7. TAX STATUS
The United States Treasury Department advised on July 24, 1995, that the
Plan, as restated as of January 1, 1992, 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 (15% as of January 1, 1996) but not to exceed
$9,240 in 1995 and 1994 (may be 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 highly compensated employees are limited by testing in accordance with
section 401(k).
8. 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.
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:
1995 1994
_____________ _____________
Plan Equity per Form 5500 $ 552,376,550 $ 455,848,656
Distributions payable that are allocated
but unpaid to former participants 2,616,830 1,711,238
_____________ _____________
Plan Equity per financial statements $ 554,993,380 $ 457,559,894
============= =============
Distributions to former participants
per Form 5500 $ 31,456,839 $ 30,913,712
Distributions payable that are allocated
but unpaid to former participants (2,616,830) (1,711,238)
Prior year distributions payable that
were paid to former participants
in the current year 1,711,238 1,075,833
_____________ _____________
Distributions to former participants
per financial statements $ 30,551,247 $ 30,278,307
============= =============
10. ASSET ALLOCATION
As described in Note 2, the participants may elect to invest their
contributions in five investment funds (eight in 1996) 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-11 through F-17.
F-9
<PAGE>
NOTES TO FINANCIAL STATEMENTS (contd)
11. SUBSEQUENT EVENT
Effective January 1, 1996, certain changes were made to the Plan. Several
of these changes are as follows:
* Plan is now valued daily
* Participants may change contribution percentages and future investment
elections upon request
* Funds may be reallocated upon request
* An interactive voice response system has been implemented
* Investment elections may be allocated in whole percentage increments
(limited to 50% in the Stock Fund)
* Three new funds have been added (Small Capitalization, International,
and S&P 500 Index Funds)
* The maximum before-tax contribution has been increased from 10% to 15%
* Eligibility begins 3 months after date of hire
* Diversification of ESOP shares is allowed anytime during the year
(subject to age and service requirements)
* After-tax withdrawal is available upon request
* Participant is allowed two loans at a time
* Lump sum contributions have been eliminated
* The after-tax match on the first 3% of after-tax contributions has been
eliminated and the Company now matches only the 4% and 5% at 25%
* Plan name has been changed to the Parker Retirement Savings Plan
For a more complete explanation of the Plan, participants should refer to the
summary plan description.
F-10
<PAGE>
THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN
STATEMENTS OF FINANCIAL CONDITION
COMPANY STOCK FUND
__________________
December 31,
___________________________
1995 1994
Assets
Investments at market value $ 56,910,593 $ 46,906,299
Contributions receivable 120,400 70,584
Investment income receivable 3,353 3,366
Other receivables 3,251 3,251
____________ ____________
Total assets $ 57,037,597 $ 46,983,500
============ ============
Liabilities & Fund Equity
Security purchases payable $ 199,966 $ 359,674
____________ ____________
Total liabilities 199,966 359,674
Fund equity 56,837,631 46,623,826
____________ ____________
Total liabilities & fund equity $ 57,037,597 $ 46,983,500
============ ============
STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY
Year ended December 31,
____________________________
1995 1994
Contributions:
Employees' payroll deductions $ 5,904,379 $ 3,658,367
Lump-sum contributions 17,711 43,873
Transfers from other plans - 26,115
____________ ____________
Total employees' contributions and transfers 5,922,090 3,728,355
Transfers from other Savings Plan Funds 1,711,350 760,170
Interest income 28,807 23,394
Dividend income 1,118,664 1,065,064
Net appreciation in the fair
value of investments 6,525,140 8,122,755
Withdrawals and terminations (3,070,697) (2,957,562)
Trustee fees and expenses (39,712) (23,419)
Transfers to other Savings Plan Funds (1,981,837) (6,374,588)
____________ ____________
Increase in fund equity 10,213,805 4,344,169
Beginning fund equity 46,623,826 42,279,657
____________ ____________
Ending fund equity $ 56,837,631 $ 46,623,826
============ ============
F-11
<PAGE>
THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN
STATEMENTS OF FINANCIAL CONDITION
FIXED INCOME FUND
_________________
December 31,
____________________________
1995 1994
Assets
Investments at market value $ 25,367,060 $ 20,181,294
Contributions receivable 37,930 75,837
Investment income receivable 534,564 312,876
Other receivables - 30,359
____________ ____________
Total assets $ 25,939,554 $ 20,600,366
============ ============
Liabilities & Fund Equity
Fund equity $ 25,939,554 $ 20,600,366
____________ ____________
Total liabilities & fund equity $ 25,939,554 $ 20,600,366
============ ============
STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY
Year ended December 31,
____________________________
1995 1994
Contributions:
Employees' payroll deductions $ 3,799,019 $ 3,262,850
Lump-sum contributions 5,235 17,861
Transfers from other plans - 47,877
____________ ____________
Total employees' contributions and transfers 3,804,254 3,328,588
Transfers from other Savings Plan Funds 730,040 1,028,331
Interest income 1,476,593 1,221,043
Net appreciation (depreciation) in
the fair value of investments 1,638,755 (1,412,249)
Withdrawals and terminations (1,240,139) (1,437,396)
Trustee fees and expenses (53,784) (44,573)
Transfers to other Savings Plan Funds (1,016,531) (1,930,896)
____________ ____________
Increase in fund equity 5,339,188 752,848
Beginning fund equity 20,600,366 19,847,518
____________ ____________
Ending fund equity $ 25,939,554 $ 20,600,366
============ ============
F-12
<PAGE>
THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN
STATEMENTS OF FINANCIAL CONDITION
EQUITY FUND
___________
December 31,
___________________________
1995 1994
Assets
Investments at market value $ 95,862,263 $ 61,335,412
Contributions receivable 133,392 182,699
Investment income receivable 219 2,019
____________ ____________
Total assets $ 95,995,874 $ 61,520,130
============ ============
Liabilities & Fund Equity
Fund equity $ 95,995,874 $ 61,520,130
____________ ____________
Total liabilities & fund equity $ 95,995,874 $ 61,520,130
============ ============
STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY
Year ended December 31,
___________________________
1995 1994
Contributions:
Employees' payroll deductions $ 12,441,882 $ 10,084,086
Lump-sum contributions 23,545 35,600
Transfers from other plans - 73,561
____________ ____________
Total employees' contributions and transfers 12,465,427 10,193,247
Transfers from other Savings Plan Funds 4,430,954 3,288,501
Interest income 22,401 9,569
Net appreciation in the fair
value of investments 23,523,954 1,124,458
Withdrawals and terminations (3,445,167) (3,468,944)
Trustee fees and expenses (266,125) (177,235)
Transfers to other Savings Plan Funds (2,255,700) (4,442,193)
____________ ____________
Increase in fund equity 34,475,744 6,527,403
Beginning fund equity 61,520,130 54,992,727
____________ ____________
Ending fund equity $ 95,995,874 $ 61,520,130
============ ============
F-13
<PAGE>
THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN
STATEMENTS OF FINANCIAL CONDITION
CONTRACT INCOME FUND
____________________
December 31,
_____________________________
1995 1994
Assets
Investments at market value $ 14,609,536 $ 6,179,884
Investment contracts 155,287,642 158,629,321
Contributions receivable - 41,803
Investment income receivable 311,154 681,597
Security sales receivable 186 34,920
_____________ _____________
Total assets $ 170,208,518 $ 165,567,525
============= =============
Liabilities & Fund Equity
Security purchases payable $ 247,242 $ 432,113
_____________ _____________
Total liabilities 247,242 432,113
Fund equity 169,961,276 165,135,412
_____________ _____________
Total liabilities & fund equity $ 170,208,518 $ 165,567,525
============= =============
STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY
Year ended December 31,
_____________________________
1995 1994
Contributions:
Employees' payroll deductions $ 11,625,898 $ 10,615,311
Lump-sum contributions 7,950 150,708
Transfers from other plans - 194,938
_____________ _____________
Total employees' contributions and transfers 11,633,848 10,960,957
Transfers from other Savings Plan Funds 4,427,582 3,945,114
Interest income 10,436,961 10,353,520
Net appreciation in the fair
value of investments - 265,155
Withdrawals and terminations (14,864,629) (14,715,938)
Trustee fees and expenses (217,250) (240,743)
Transfers to other Savings Plan Funds (6,590,648) (11,724,752)
_____________ _____________
Increase (decrease) increase in fund equity 4,825,864 (1,156,687)
Beginning fund equity 165,135,412 166,292,099
_____________ _____________
Ending fund equity $ 169,961,276 $ 165,135,412
============= =============
F-14
<PAGE>
THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN
STATEMENTS OF FINANCIAL CONDITION
BALANCED FUND
_____________
Year ended December 31,
___________________________
1995 1994
Assets
Investments at market value $ 33,138,575 $ 21,979,072
Contributions receivable 56,248 99,575
Investment income receivable 73 1,526
____________ ____________
Total assets $ 33,194,896 $ 22,080,173
============ ============
Liabilities & Fund Equity
Fund equity $ 33,194,896 $ 22,080,173
____________ ____________
Total liabilities & fund equity $ 33,194,896 $ 22,080,173
============ ============
STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY
Year ended December 31,
___________________________
1995 1994
Contributions:
Employees' payroll deductions $ 5,349,553 $ 5,042,137
Lump-sum contributions 7,412 8,441
Transfers from other plans - 22,066
____________ ____________
Total employees' contributions and transfers 5,356,965 5,072,644
Transfers from other Savings Plan Funds 1,645,891 2,219,126
Interest income 4,718 7,961
Net appreciation in the fair
value of investments 6,769,875 90,063
Withdrawals and terminations (867,112) (1,131,326)
Trustee fees and expenses (105,233) (64,264)
Transfers to other Savings Plan Funds (1,690,381) (1,632,254)
____________ ____________
Increase in fund equity 11,114,723 4,561,950
Beginning fund equity 22,080,173 17,518,223
____________ ____________
Ending fund equity $ 33,194,896 $ 22,080,173
============ ============
F-15
<PAGE>
THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN
STATEMENTS OF FINANCIAL CONDITION
LOAN FUND
_________
December 31,
___________________________
1995 1994
Assets
Participant Loans Receivable $ 16,581,558 $ 14,659,980
____________ ____________
Total assets $ 16,581,558 $ 14,659,980
============ ============
Liabilities & Fund Equity
Fund equity 16,581,558 14,659,980
____________ ____________
Total liabilities & fund equity $ 16,581,558 $ 14,659,980
============ ============
STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY
Year ended December 31,
___________________________
1995 1994
Transfers from other Savings Plan Funds $ 7,912,590 $ 17,347,100
Interest income 1,182,681 537,177
Withdrawals and terminations (544,271) (354,616)
Transfers to other Savings Plan Funds (6,629,422) (2,869,681)
____________ ____________
Increase in fund equity 1,921,578 14,659,980
Beginning fund equity 14,659,980 -
____________ ____________
Ending fund equity $ 16,581,558 $ 14,659,980
============ ============
F-16
<PAGE>
THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN
STATEMENTS OF FINANCIAL CONDITION
ESOP FUND
_________
December 31,
_____________________________
1995 1994
Assets
Investments at market value $ 165,705,849 $ 148,594,413
Contributions receivable 500,466 424,649
Investment income receivable 56,542 48,406
_____________ _____________
Total assets $ 166,262,857 $ 149,067,468
============= =============
Liabilities & Fund Equity
Dividends payable to participants $ 2,885,266 $ 2,394,461
Notes payable 6,895,000 19,733,000
_____________ _____________
Total liabilities 9,780,266 22,127,461
Fund equity 156,482,591 126,940,007
_____________ _____________
Total liabilities & fund equity $ 166,262,857 $ 149,067,468
============= =============
STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY
Year ended December 31,
_____________________________
1995 1994
Contributions:
Employer's contributions $ 18,200,977 $ 16,341,467
Transfers from other Savings Plan Funds 68,971 1,493,719
Interest income 346,407 246,583
Dividend income - net 468,882 813,637
Net appreciation in the fair
value of investments 19,135,540 24,793,468
Withdrawals and terminations (6,519,232) (6,212,525)
Interest expense (1,396,102) (2,399,541)
Transfers to other Savings Plan Funds (762,859) (1,107,697)
_____________ _____________
Increase in fund equity 29,542,584 33,969,111
Beginning fund equity 126,940,007 92,970,896
_____________ _____________
Ending fund equity $ 156,482,591 $ 126,940,007
============= =============
F-17
<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, 1996
