<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For fiscal year ended December 31, 1993
Commission File Number I-8889
MORRISON KNUDSEN CORPORATION SAVINGS PLAN
----------------------------------------------
(Full Title of Plan)
MORRISON KNUDSEN CORPORATION
----------------------------------------------
(Name and Address of Issuer of the Securities)
MORRISON KNUDSEN PLAZA
BOISE, IDAHO 83729
----------------------------------------------
(Address of Principal Executive Office)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employee benefit plan) have duly
caused this annual report to be signed on its behalf by the undersigned hereunto
duly authorized.
Morrison Knudsen Corporation Savings Plan
/s/ Stephen G. Hanks
Date: June 29, 1994 _____________________________________
Stephen G. Hanks
Plan Committee Member
<PAGE>
MORRISON KNUDSEN CORPORATION
SAVINGS PLAN
____________________
FINANCIAL STATEMENTS
AND INDEPENDENT AUDITORS' REPORT
December 31, 1993 and 1992
<PAGE>
MORRISON KNUDSEN CORPORATION
SAVINGS PLAN
TABLE OF CONTENTS
PAGE
----
Independent Auditors' Report 2
Financial Statements:
Statements of Net Assets Available for
Benefits as of December 31, 1993 and 1992 3
Statements of Changes in Net Assets Available
for Benefits for the Years Ended
December 31, 1993 and 1992 4
Notes to Financial Statements 5-13
Supplemental Schedules:
Item 27(a) - Schedule of Assets Held for Investment Purposes
as of December 31, 1993 14
Item 27(d) - Schedule of Reportable Transactions
for the Year Ended December 31, 1993 15
<PAGE>
INDEPENDENT AUDITORS' REPORT
Administrative Committee
Morrison Knudsen Corporation Savings Plan
We have audited the accompanying statements of net assets available for benefits
of the Morrison Knudsen Corporation Savings Plan (the Plan) as of December 31,
1993 and 1992, and the related statements of changes in net assets available for
benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan as of December 31,
1993 and 1992, and the changes in net assets available for benefits for the
years then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules listed in the
Table of Contents are presented for the purpose of additional analysis and are
not a required part of the basic financial statements, but are 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. These schedules are the responsibility of the Plan's management. Such
schedules have been subjected to the auditing procedures applied in our audit of
the basic 1993 financial statements and, in our opinion, are fairly stated in
all material respects when considered in relation to the basic financial
statements taken as a whole.
DELOITTE & TOUCHE
June 17, 1994
<PAGE>
MORRISON KNUDSEN CORPORATION
SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE
FOR BENEFITS
December 31, 1993 and 1992
_______________
<TABLE>
<CAPTION>
ASSETS 1993 1992
---- ----
<S> <C> <C>
Cash $ 12,856 $ 142
Investments at fair value (Notes 3 and 9):
Mutual funds 93,342,876 74,924,360
Common stock 23,811,256 13,906,034
Participant notes receivable 2,741,306 -
------------- ------------
Total investments 119,895,438 88,830,394
------------- ------------
Receivables:
Participants' contributions 8,445 56,620
Employer's contributions 2,065 l3,609
------------- ------------
Total receivables 10,510 70,229
------------- ------------
NET ASSETS AVAILABLE FOR BENEFITS $ 119,918,804 $ 88,900,765
------------- ------------
------------- ------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
MORRISON KNUDSEN CORPORATION
SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS
Years Ended December 31, 1993 and 1992
_______________
<TABLE>
<CAPTION>
1993 1992
---- ----
<S> <C> <C>
Participants' contributions $21,756,386 $18,614,560
Employer's contributions 5,205,873 4,507,737
Investment income - net 6,403,872 4,782,070
Net appreciation (depreciation)
in fair value of investments 7,676,752 (651,263)
Participants' withdrawals (10,024,844) (8,209,586)
---------- ----------
Increase in net assets 31,018,039 19,043,518
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 88,900,765 69,857,247
------------ -----------
End of year $119,918,804 $88,900,765
------------ -----------
------------ -----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
MORRISON KNUDSEN CORPORATION
SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
_______________
1. DESCRIPTION OF THE PLAN
The Morrison Knudsen Corporation (the Company) Savings Plan (the Plan) is a
defined contribution plan covering all salaried employees of the Company and
its subsidiaries who (1) have attained the age of 21, (2) are citizens of
the United States of America, and (3) are not covered by a collective
bargaining agreement. The following description of the Plan provides only
general information. Participants should refer to the Plan agreement for a
more complete description of the Plan's provisions.
The Plan is subject to the provisions of the Employee Retirement Income
Security Act of 1974 (ERISA), as amended.
CONTRIBUTIONS: Participants can elect to contribute from 1 to 15 percent
of annual eligible pre-tax compensation to the Plan. The maximum allowable
annual contribution by a participant was $8,994 and $8,728 in 1993 and 1992,
respectively. Such contributions are tax deferred under sections 401(a) and
401(k) of the Internal Revenue code. Prior to January 1, 1989 participants
were also permitted to make after-tax, voluntary contributions to the Plan.
Compensation, as defined by the Plan, includes salaries, commissions,
bonuses, and overtime pay. Compensation does not include amounts deferred
into the Morrison Knudson Deferred Compensation Plan.
The Company matches, on a dollar for dollar basis, the employees
contribution to the Plan up to 2% of their annual eligible compensation.
Additionally, the Company may make elective contributions to the Plan in
such amounts as it determines. Elective Company contributions and
participants' non-vested forfeitures are allocated to accounts established
on behalf of participants in the proportion each participant's compensation
bears to the total compensation of all participants. As of December 31,
1993, the Company has not made any elective contributions to the Plan.
VESTING: Participants vest 100% in their salary deferral and voluntary
contribution accounts. Participants vest in the Company contributions over
a five year period at 20 percent per year, or upon retirement, death or
disability.
PAYMENT OF BENEFITS: Upon a participant's retirement, death, or
separation from service, a distribution of benefits shall be made in the
form of a lump sum cash payment unless an election is made to retain the
account balance in the Plan. Upon a participant's retirement or separation
from service, a participant, with an account balance of up to $3,500, may
choose to retain their account balance in the Plan for up to one year. If a
participant's account balance is $3,500 or more, the participant may retain
the account balance in the Plan until age 65.
5
<PAGE>
2. SUMMARY OF ACCOUNTING POLICIES
The financial statements of the Plan are presented on the accrual basis of
accounting.
Investments are stated at fair value as determined by quoted market prices.
Dividend income is recorded on the ex-dividend date. Interest is recorded
as earned on the accrual basis.
Purchases and sales of investments are recorded on the trade date.
3. INVESTMENT OF FUNDS AND FUND PERFORMANCE
Participants' accounts are held in a trust and invested at the participants'
direction in investment funds selected by the Plan's Administrative
Committee (the Committee). The Committee also determines the manner in
which participants may direct the investment of their accounts. Each
participant must allocate Plan contributions among one or more of these
investment funds in 1% increments.
Except as otherwise indicated, T. Rowe Price is the investment manager for
each of the investment funds. Earnings (net of administrative expenses) for
each fund are allocated to a participant's account in that fund in the
proportion that the value of such account has to the value of all accounts
in that investment fund.
The Committee has selected the following investment funds:
1. THE UNRESTRICTED STOCK FUND. The Unrestricted Stock Fund invests in
common stock of the Company. This fund is not a diversified fund as its
performance will depend entirely on the performance of the common stock of
the Company, which may increase or decrease. Dividends received with
respect to the shares held in the Unrestricted Stock Fund will be
reinvested in the fund.
The following table sets forth the market price per share of Common Stock
of the Company, adjusted to give effect to the two-for-one stock split in
May, 1992.
<TABLE>
<CAPTION>
YEAR RANGE DURING YEAR AT DECEMBER 31 ANNUAL DIVIDENDS
<S> <C> <C> <C>
1984 $13.38-17.13 $17.00 $.70
1985 16.50-23.94 23.63 .74
1986 19.63-26.13 21.38 .74
1987 14.75-27.81 16.63 .74
1988 15.75-22.00 19.69 .74
1989 18.38-24.25 23.31 .74
1990 15.19-30.25 21.44 .74
1991 18.88-30.37 24.81 .74
1992 17.87-28.63 21.63 .80
1993 19.38-27.13 25.13 .80
</TABLE>
Fund assets were $3,392,496 and $2,563,240 at December 31, 1993 and 1992.
6
<PAGE>
2. RESTRICTED STOCK FUND. The Savings Plan also provides for a Restricted
Stock Fund which is invested in common stock of the Company. Each participant
in the Company's Employee Stock Ownership Plan ("ESOP") has shares of common
stock of the Company allocated to their ESOP accounts based on the participant's
salary deferral in the Plan's Restricted Stock Fund. Under these circumstances,
the greater the investment in the Restricted Stock Fund, generally the greater
the allocation in the ESOP. However, the Restricted Stock Fund is not a
diversified fund as its performance will depend entirely on the performance of
the common stock of the Company, which may increase or decrease. Dividends
received with respect to shares held in the Restricted Stock Fund will be
reinvested in the fund. Furthermore, amounts invested in the Restricted Stock
Fund may not be withdrawn, except in the case of financial hardship or until a
participant separates from service with the Company. The market price per share
of common stock of the Company is set forth above in the discussion of the
Unrestricted Stock Fund. Fund assets were $20,418,760 and $11,342,794 at
December 31, 1993 and 1992.
3. THE STABLE VALUE FUND. The Stable Value Fund invests primarily in a
portfolio of GICs, BICs and SICs, issued by U.S. and Canadian insurance
companies, banks and other issuers deemed to be creditworthy by the T. Rowe
Price Trust Company, the manager of the fund. Fund assets were $31,734,434
and $33,655,227 at December 31, 1993 and 1992.
4. INTERNATIONAL STOCK FUND. The International Stock Fund invests in common
stocks of non-United States companies. The portfolio is both geographically and
industrially diversified around the world. However, like any international
undertaking, the International Stock Fund can be subject to risks and market
cycles that cannot be controlled by the economic policies of the United States.
In addition, investment returns do not necessarily parallel those realized
through domestic investments. Fund assets were $5,178,697 and $3,045,607 at
December 31, 1993 and 1992.
5. NEW ASIA FUND. The New Asia Fund invests in companies in the newly
emerging countries of Asia and the Pacific Basin. Its goal is to take advantage
of the expected new growth opportunities in these countries which are in an
earlier, more dynamic stage of development than more mature economies such as
Japan. It is the most aggressive international fund offered. Fund assets were
$2,574,435 and $455,963 at December 31, 1993 and 1992.
6. GROWTH STOCK FUND. The Growth Stock Fund invests primarily in common
stocks of growth companies chosen by T. Rowe Price. The Growth Stock Fund
invests almost exclusively in common stocks and tends to have a price per share
that is somewhat less stable than that of the Equity Income Fund. Fund assets
were $14,107,936 and $11,954,048 at December 31, 1993 and 1992.
7. NEW ERA FUND. The New Era Fund focuses on companies which own or develop
natural resources like gold, oil, chemicals, forest products and other basic
commodities. It is designed to provide an inflation hedge with the potential
for high capital growth. Fund assets were $172,196 and $84,686 at December 31,
1993 and 1992.
7
<PAGE>
8. NEW HORIZONS FUND. The New Horizons Fund invests primarily in the common
stock of emerging growth companies. Investing in emerging growth companies can
be quite risky, and the New Horizons Fund can experience a high level of price
volatility. Fund assets were $5,023,236 and $3,178,823 at December 31, 1993 and
1992.
9. NEW INCOME FUND. The New Income Fund invests in investment-grade debt
securities. Focus is on longer-term U.S. Government issues, finance industry
bonds and other securities. The average maturity of the portfolio is adjusted
based on interest rate forecasts. Fund assets were $316,701 and $163,655 at
December 31, 1993 and 1992.
10. PRIME RESERVE FUND. The Prime Reserve Fund invests in a diversified
portfolio of domestic and foreign U.S. dollar-denominated money market
securities rated within the two highest credit categories assigned by
established rating agencies or, if not rated, of equivalent investment quality
as determined by T. Rowe Price. At least 65% of the Prime Reserve Fund total
assets is maintained in prime money market instruments with the highest credit
category assigned by an established rating agency. No further deposits were
allowed to be made to the Prime Reserve Fund after December 31, 1989. Fund
assets were $2,907,801 and $3,283,277 at December 31, 1993 and 1992.
11. SMALL-CAP VALUE FUND. The Small-Cap Value Fund targets
small-capitalization company stocks, which provide higher returns than
large-capitalization companies, but with greater risk. The Fund seeks to reduce
this risk through in-depth research to target small-cap companies whose values
are not reflected in their stock prices. Fund assets were $1,423,535 and
$435,492 at December 31, 1993 and 1992.
12. EQUITY INDEX FUND. The Equity Index Fund invests in common stocks that
compose the Standard & Poor's 500 Stock Index. It seeks capital appreciation
and performance in line with the overall U.S. stock market. Fund assets were
$586,649 and $305,597 at December 31, 1993 and 1992.
13. GLOBAL GOVERNMENT BOND FUND. The Global Government Bond Fund diversifies
its assets across a wide range of high-quality foreign and U.S. Government
bonds. This is the most conservative international fund offered and is designed
to take a prudent approach to delivering the highest yields available from
government bonds worldwide. Fund assets were $75,900 and $43,174 at December
31, 1993 and 1992.
14. U.S. TREASURY MONEY FUND. The U.S. Treasury Money Fund invests
exclusively in securities guaranteed by the full faith and credit of the U.S.
Government. The Fund generates income and provides capital protection. Fund
assets were $1,373,802 and $578,114 at December 31, 1993 and 1992.
8
<PAGE>
15. GROWTH AND INCOME FUND. The Growth and Income Fund searches out
opportunities in undervalued, out-of-favor stocks in order to provide both
capital growth and current income. It is expected to be less volatile than
stocks in general. Fund assets were $1,673,131 and $529,545 at December 31,
1993 and 1992.
16. SHORT-TERM BOND FUND. The Short-Term Bond Fund invests in short- and
intermediate-term securities, focusing on high-quality Treasuries, CDs and
finance industry bonds. It is designed to yield higher-than-money market income
and offers more stability than longer term bond funds. Fund assets were
$262,586 and $170,083 at December 31, 1993 and 1992.
17. HIGH YIELD FUND. The High Yield Fund invests aggressively in a wide
range of medium-to-lower quality, longer term bonds. It is designed for
investors seeking the highest yielding opportunities in the bond market and is
the highest yielding corporate fund offered. It is expected to be the most
volatile. Fund assets were $608,080 and $206,060 at December 31, 1993 and 1992.
18. NEW AMERICA GROWTH FUND. The New America Growth Fund invests in
companies in the financial services, health care, travel and leisure, food
service, airline, media, and computer software industries, as well as other
companies in the service sector. Fund assets were $2,101,296 and $877,848 at
December 31, 1993 and 1992.
19. SCIENCE & TECHNOLOGY FUND. The Science and Technology Fund invests in a
wide range of industries, including computers, genetic engineering,
communications, health care and waste management. Fund assets were $4,267,732
and $1,225,200 at December 31, 1993 and 1992.
20. U.S. TREASURY INTERMEDIATE FUND. The U.S. Treasury Intermediate Fund
invests in Government securities featuring higher-than-money market income, more
stability than long-term bonds and maximum credit safety. Fund assets were
$555,736 and $346,703 at December 31, 1993 and 1992.
21. U.S. TREASURY LONG-TERM FUND. The U.S. Treasury Long-Term Fund invests
primarily in long-term Treasury bonds to provide high income and maximum credit
safety. It is expected to earn the highest yields and have the greatest price
swings of any of the offered Treasury Funds. Fund assets were $407,752 and
$193,447 at December 31, 1993 and 1992.
22. GNMA FUND. The GNMA Fund invests in mortgage-backed securities that are
100 percent guaranteed for timely payment of principal and interest by the U.S.
Treasury. The Fund's share price and yield are not guaranteed. This Fund seeks
the highest current income that is consistent with preserving the investor's
capital and providing maximum credit protection. Fund assets were $538,291 and
$432,137 at December 31, 1993 and 1992.
23. EQUITY INCOME FUND. The Equity Income Fund invests primarily in
dividend-paying common stocks of companies chosen by T. Rowe Price. This fund
also has the flexibility to invest in corporate, government and municipal bonds,
preferred stock warrants and options. Fund assets were $14,469,607 and
$12,373,034 at December 31, 1993 and 1992.
9
<PAGE>
24. CAPITAL APPRECIATION FUND. The Capital Appreciation Fund invests in
undervalued and out-of-favor stocks and balances its aggressive approach with
prudent risk management. The Fund has the flexibility to move into short-term
money market investments during times of market uncertainty. The Fund's primary
goal is capital growth. Fund assets were $820,186 and $348,109 at December 31,
1993 and 1992.
25. INTERNATIONAL BOND FUND. The International Bond Fund invests primarily
in high-quality government and corporate bonds issued in foreign currencies. It
is designed to provide high current income, capital growth potential and the
benefits of diversifying investments worldwide. Fund assets were $405,213 and
$304,047 at December 31, 1993 and 1992.
26. EUROPEAN STOCK FUND. The European Stock Fund invests primarily in
European companies in markets and sectors which have strong growth potential.
The Fund's goal is long-term capital appreciation. Fund assets were $488,766
and $224,550 at December 31, 1993 and 1992.
27. SPECTRUM INCOME FUND. The Spectrum Income Fund is invested in a variety
of income instruments, including Treasuries, GNMAs, high-quality bonds,
high-yield bonds, foreign issues and dividend-producing stocks. It offers broad
diversification in meeting long-term goals. Fund assets were $507,028 and
$213,980 at December 31, 1993 and 1992.
28. SPECTRUM GROWTH FUND. The Spectrum Growth Fund invests in domestic and
international stocks with growth and income potential, and money market
securities to add stability. It primarily seeks capital growth and,
secondarily, income by diversifying investment. Fund assets were $762,150 and
$295,954 at December 31, 1993 and 1992.
Investments that represent 5 percent or more of the Plan's net assets are
separately identified below:
<TABLE>
<CAPTION>
DECEMBER 31, 1993 DECEMBER 31, 1992
----------------- -------------------
Number of Fair Number of Fair
Shares Value Shares Value
---------- ----------- ---------- -------
<S> <C> <C> <C> <C>
Investments at Fair Value
Stable Value Fund 31,734,434 $31,734,434 33,655,227 $33,655,227
Equity Income Fund 869,045 14,469,607 791,621 12,373,034
Growth Stock Fund 690,888 14,107,936 640,624 11,954,048
Morrison Knudsen Corporation
Restricted Stock Fund 812,687 20,418,760 404,870 11,342,794
</TABLE>
During 1993 and 1992, the Plan's investments (including investments bought,
sold, and held during the year) appreciated (depreciated) in value by $7,676,752
and $(651,263), respectively, as follows:
<TABLE>
<CAPTION>
1993 1992
---- ----
<S> <C> <C>
Mutual Funds $4,867,770 $ 592,270
Common Stock 2,808,982 (1,243,533)
---------- -----------
$7,676,752 $ (651,263)
---------- -----------
---------- -----------
</TABLE>
Following is a statement of changes in net assets available for benefits by fund
at December 31, 1993 and 1992.
10
<PAGE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1993
Non-Participant Directed Funds
Participant -----------------------------------------------------------------
Directed Stable International New Growth
Funds Value Stock Asia Stock
<S> <C> <C> <C> <C> <C>
ADDITIONS TO (DEDUCTIONS FROM)
NET ASSETS ATTRIBUTED TO:
Participants' Contributions $8,370,864 $3,092,811 $693,114 $355,191 $1,382,003
Employer's Contributions 286,107 1,164,412 256,887 115,939 506,060
Investment income- net 593,517 1,956,058 125,164 50,228 750,943
Net appreciation (depreciation)
in fair value of investments 2,808,982 - 1,211,624 739,804 1,152,699
Participants' withdrawals (1,924,972) (4,532,535) (205,339) (96,816) (779,935)
Interfund transfers 2,512,030 (3,601,539) 51,640 954,126 (857,882)
--------------- --------------- --------------- --------------- ---------------
Increase (decrease) in net assets 12,646,528 (1,920,793) 2,133,090 2,118,472 2,153,888
NET ASSETS AVAILABLE
FOR BENEFITS:
Beginning of year 13,906,034 33,655,227 3,045,607 455,963 11,954,048
--------------- --------------- --------------- --------------- ---------------
End of year $26,552,562 $31,734,434 $5,178,697 $2,574,435 $14,107,936
--------------- --------------- --------------- --------------- ---------------
--------------- --------------- --------------- --------------- ---------------
<CAPTION>
---------------------------------------------------------------------------------
New New New Prime Small-Cap
Era Horizons Income Reserve Value
<C> <C> <C> <C> <C>
ADDITIONS TO (DEDUCTIONS FROM)
NET ASSETS ATTRIBUTED TO:
Participants' Contributions $56,206 $767,244 $155,852 $244,987 $370,808
Employer's Contributions 24,057 299,339 30,606 110,578 114,783
Investment income- net 11,786 711,225 17,501 77,272 43,473
Net appreciation (depreciation)
in fair value of investments 6,902 143,132 4,199 (2) 154,986
Participants' withdrawals (11,430) (228,434) (31,938) (343,783) (49,926)
Interfund transfers (11) 151,907 (23,174) (464,528) 353,919
--------------- --------------- --------------- --------------- ---------------
Increase (decrease) in net assets 87,510 1,844,413 153,046 (375,476) 988,043
NET ASSETS AVAILABLE
FOR BENEFITS:
Beginning of year 84,686 3,178,823 163,655 3,283,277 435,492
--------------- --------------- --------------- --------------- ---------------
End of year $172,196 $5,023,236 $316,701 $2,907,801 $1,423,535
--------------- --------------- --------------- --------------- ---------------
--------------- --------------- --------------- --------------- ---------------
<CAPTION>
-------------------------------------------------------------------------------
Equity Global U.S. Growth & S/T
Index Govt. Bond Treasury Income Bond
<C> <C> <C> <C> <C>
ADDITIONS TO (DEDUCTIONS FROM)
NET ASSETS ATTRIBUTED TO:
Participants' Contributions $241,897 $43,824 $565,635 $576,184 $102,651
Employer's Contributions 83,615 9,937 282,807 171,698 41,091
Investment income- net 12,977 5,230 25,918 91,003 13,582
Net appreciation (depreciation)
in fair value of investments 27,593 211 - 42,168 (194)
Participants' withdrawals (28,389) (7,118) (105,139) (57,533) (7,948)
Interfund transfers (56,641) (19,358) 26,467 320,066 (56,679)
--------------- --------------- --------------- --------------- ---------------
Increase (decrease) in net assets 281,052 32,726 795,688 1,143,586 92,503
NET ASSETS AVAILABLE
FOR BENEFITS:
Beginning of year 305,597 43,174 578,114 529,545 170,083
--------------- --------------- --------------- --------------- ---------------
End of year $586,649 $75,900 $1,373,802 $1,673,131 $262,586
--------------- --------------- --------------- --------------- ---------------
--------------- --------------- --------------- --------------- ---------------
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
High New Science & US Treasury US Treasury
Yield America Technology Intermediate Long-Term
<S> <C> <C> <C> <C> <C>
ADDITIONS TO (DEDUCTIONS FROM)
NET ASSETS ATTRIBUTED TO:
Participants' Contributions $215,957 $524,656 $950,992 $201,186 $149,701
Employer's Contributions 75,075 191,330 360,648 80,536 70,842
Investment income- net 40,122 83,700 491,291 28,693 29,658
Net appreciation (depreciation)
in fair value of investments 37,832 183,315 134,243 6,281 2,866
Participants' withdrawals (43,925) (79,231) (151,273) (99,901) (22,073)
Interfund transfers 76,959 319,678 1,256,631 (7,762) (16,689)
--------------- --------------- --------------- --------------- ---------------
Increase (decrease) in net assets 402,020 1,223,448 3,042,532 209,033 214,305
NET ASSETS AVAILABLE
FOR BENEFITS:
Beginning of year 206,060 877,848 1,225,200 346,703 193,447
--------------- --------------- --------------- --------------- ---------------
End of year $608,080 $2,101,296 $4,267,732 $555,736 $407,752
--------------- --------------- --------------- --------------- ---------------
--------------- --------------- --------------- --------------- ---------------
<CAPTION>
---------------------------------------------------------------------------------
Ginnie Equity Capital International European
Mae Income Appreciation Bond Stock
<C> <C> <C> <C> <C>
ADDITIONS TO (DEDUCTIONS FROM)
NET ASSETS ATTRIBUTED TO:
Participants' Contributions $153,679 $1,622,292 $256,492 $141,641 $124,827
Employer's Contributions 65,040 579,062 78,393 50,340 42,642
Investment income- net 35,729 1,048,616 32,313 39,139 2,807
Net appreciation (depreciation)
in fair value of investments (5,857) 832,533 49,822 16,449 78,689
Participants' withdrawals (78,116) (922,735) (56,364) (33,923) (16,300)
Interfund transfers (64,321) (1,063,195) 111,421 (112,480) 31,551
--------------- --------------- --------------- --------------- ---------------
Increase (decrease) in net assets 106,154 2,096,573 472,077 101,166 264,216
NET ASSETS AVAILABLE
FOR BENEFITS:
Beginning of year 432,137 12,373,034 348,109 304,047 224,550
--------------- --------------- --------------- --------------- ---------------
End of year $538,291 $14,469,607 $820,186 $405,213 $488,766
--------------- --------------- --------------- --------------- ---------------
--------------- --------------- --------------- --------------- ---------------
<CAPTION>
---------------------------------------------------------------
Spectrum Spectrum
Income Growth Other Total
<C> <C> <C> <C>
ADDITIONS TO (DEDUCTIONS FROM)
NET ASSETS ATTRIBUTED TO:
Participants' Contributions $220,299 $223,568 ($48,175) $21,756,386
Employer's Contributions 51,911 71,376 (9,238) 5,205,873
Investment income- net 31,051 54,876 - 6,403,872
Net appreciation (depreciation)
in fair value of investments 8,005 40,470 - 7,676,752
Participants' withdrawals (65,459) (44,309) - (10,024,844)
Interfund transfers 47,241 120,215 10,408 0
--------------- --------------- --------------- ---------------
Increase (decrease) in net assets 293,048 466,196 (47,005) 31,018,039
NET ASSETS AVAILABLE
FOR BENEFITS:
Beginning of year 213,980 295,954 70,371 88,900,765
--------------- --------------- --------------- ---------------
End of year $507,028 $762,150 $23,366 $119,918,804
--------------- --------------- --------------- ---------------
--------------- --------------- --------------- ---------------
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1992
Non-Participant Directed Funds
Participant --------------------------------------------------------------------------------
Directed Stable International New Growth New
Funds Value Stock Asia Stock Era
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS TO (DEDUCTIONS FROM)
NET ASSETS ATTRIBUTED TO:
Participants' contributions $7,411,973 $4,090,307 $761,061 $186,456 $1,123,142 $21,072
Employer's contributions 399,503 801,992 224,465 54,322 809,100 42,548
Investment income- net 298,693 2,178,546 105,735 15,669 725,520 5,652
Net appreciation (depreciation)
in fair value of investments (1,243,534) - (210,243) 3,021 (49,116) (3,891)
Participants' withdrawals (1,144,312) (3,976,516) (349,051) (20,584) (926,618) (969)
Interfund Transfers 283,987 2,179,272 (160,609) 153,828 (143,464) (12,945)
--------------- --------------- --------------- --------------- --------------- ---------------
Increase in net assets 6,006,310 5,273,601 371,358 392,712 1,538,564 51,467
NET ASSETS AVAILABLE
FOR BENEFITS:
Beginning of year 7,899,724 28,381,626 2,674,249 63,251 10,415,484 33,219
--------------- --------------- --------------- --------------- --------------- ---------------
End of year $13,906,034 $33,655,227 $3,045,607 $455,963 $11,954,048 $84,686
--------------- --------------- --------------- --------------- --------------- ---------------
--------------- --------------- --------------- --------------- --------------- ---------------
<CAPTION>
-----------------------------------------------------------------------------------------------
New New Prime Small-Cap Equity Global Gov't
Horizons Income Reserve Value Index Bond
<C> <C> <C> <C> <C> <C>
ADDITIONS TO (DEDUCTIONS FROM)
NET ASSETS ATTRIBUTED TO:
Participants' contributions $621,906 $17,212 $290,637 $87,494 $82,938 $16,004
Employer's contributions 312,764 64,366 50,037 80,684 134,853 12,447
Investment income- net 319,741 7,298 111,034 8,367 5,858 1,476
Net appreciation (depreciation)
in fair value of investments (23,293) (2,804) - 38,422 12,901 (623)
Participants' withdrawals (235,117) (6,742) (296,282) (3,274) (12,906) (272)
Interfund Transfers (127,298) (21,324) (152,730) 172,528 2,255 12,018
--------------- --------------- --------------- --------------- --------------- ---------------
Increase in net assets 868,703 58,006 2,696 384,221 225,899 41,050
NET ASSETS AVAILABLE
FOR BENEFITS:
Beginning of year 2,310,120 105,649 3,280,581 51,271 79,698 2,124
--------------- --------------- --------------- --------------- --------------- ---------------
End of year $3,178,823 $163,655 $3,283,277 $435,492 $305,597 $43,174
--------------- --------------- --------------- --------------- --------------- ---------------
--------------- --------------- --------------- --------------- --------------- ---------------
<CAPTION>
------------------------------------------------
U.S. Growth & S/T
Treasury Income Bond
<C> <C> <C>
ADDITIONS TO (DEDUCTIONS FROM)
NET ASSETS ATTRIBUTED TO:
Participants' contributions $230,577 $101,844 $40,736
Employer's contributions 218,607 186,918 82,181
Investment income- net 10,171 18,929 6,239
Net appreciation (depreciation)
in fair value of investments - 33,329 (996)
Participants' withdrawals (29,148) (10,876) (1,345)
Interfund Transfers 47,614 133,378 35,317
--------------- --------------- ---------------
Increase in net assets 477,821 463,522 162,132
NET ASSETS AVAILABLE
FOR BENEFITS:
Beginning of year 100,293 66,023 7,951
--------------- --------------- ---------------
End of year $578,114 $529,545 $170,083
--------------- --------------- ---------------
--------------- --------------- ---------------
</TABLE>
<TABLE>
<CAPTION>
--------------- -------------------------------------------------------------------------------
Govt. Invest. High New Science & US Treasury US Treasury
Contract Yield America Technology Intermediate Long-Term
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS TO (DEDUCTIONS FROM)
NET ASSETS ATTRIBUTED TO:
Participants' contributions - $79,088 $271,828 $477,829 $121,019 $115,238
Employer's contributions - 72,704 200,329 205,875 80,380 45,668
Investment income- net - 12,766 6,062 71,107 15,141 10,450
Net appreciation (depreciation)
in fair value of investments - 1,227 59,428 89,466 (867) (2,809)
Participants' withdrawals - (6,561) (25,710) (34,242) (4,390) (5,309)
Interfund Transfers (3,879,846) 21,660 136,279 247,907 93,707 3,912
--------------- --------------- --------------- --------------- --------------- ---------------
Increase in net assets (3,879,846) 180,884 648,216 1,057,942 304,990 167,150
NET ASSETS AVAILABLE
FOR BENEFITS:
Beginning of year 3,879,846 25,176 229,632 167,258 41,713 26,297
--------------- --------------- --------------- --------------- --------------- ---------------
End of year $0 $206,060 $877,848 $1,225,200 $346,703 $193,447
--------------- --------------- --------------- --------------- --------------- ---------------
--------------- --------------- --------------- --------------- --------------- ---------------
<CAPTION>
------------------------------------------------------------------------------------------------
Ginnie Equity Capital International European Spectrum
Mae Income Appreciation Bond Stock Income
<C> <C> <C> <C> <C> <C>
ADDITIONS TO (DEDUCTIONS FROM)
NET ASSETS ATTRIBUTED TO:
Participants' contributions $73,799 $1,735,359 $134,596 $109,505 $131,602 $97,488
Employer's contributions 98,032 156,296 53,321 26,477 9,080 28,771
Investment income- net 22,729 753,378 18,580 18,137 3,944 11,191
Net appreciation (depreciation)
in fair value of investments (1,925) 686,842 858 (16,613) (18,856) (486)
Participants' withdrawals (1,888) (1,080,241) (6,907) (21,726) (2,621) (348)
Interfund Transfers 75,257 557,552 67,214 124,140 67,028 50,364
--------------- --------------- --------------- --------------- --------------- ---------------
Increase in net assets 266,004 2,809,186 267,662 239,920 190,177 186,980
NET ASSETS AVAILABLE
FOR BENEFITS:
Beginning of year 166,133 9,563,848 80,447 64,127 34,373 27,000
--------------- --------------- --------------- --------------- --------------- ---------------
End of year $432,137 $12,373,034 $348,109 $304,047 $224,550 $213,980
--------------- --------------- --------------- --------------- --------------- ---------------
--------------- --------------- --------------- --------------- --------------- ---------------
<CAPTION>
------------------------------------------------
Spectrum
Growth Other Total
<C> <C> <C>
ADDITIONS TO (DEDUCTIONS FROM)
NET ASSETS ATTRIBUTED TO:
Participants' contributions $136,434 $47,416 $18,614,560
Employer's contributions 42,409 13,608 4,507,737
Investment income- net 19,657 - 4,782,070
Net appreciation (depreciation)
in fair value of investments (701) - (651,263)
Participants' withdrawals (5,631) - (8,209,586)
Interfund Transfers 37,423 (4,424) 0
--------------- --------------- ---------------
Increase in net assets 229,591 56,600 19,043,518
NET ASSETS AVAILABLE
FOR BENEFITS:
Beginning of year 66,363 13,771 69,857,247
--------------- --------------- ---------------
End of year $295,954 $70,371 $88,900,765
--------------- --------------- ---------------
--------------- --------------- ---------------
</TABLE>
12
<PAGE>
4. WITHDRAWALS PAYABLE
As of December 31, 1993 and 1992, net assets available for benefits included
benefits of $771,843 and $305,676, respectively, due to participants who have
withdrawn from participation in the Plan.
5. TAX STATUS
The Internal Revenue Service has determined and informed the Company by
letter dated March 29, 1988, that the Plan is qualified under Section 401(a)
of the Internal Revenue Code and, accordingly, income of the Plan is exempt
from Federal income taxes under provisions of section 501(a) of the Code.
The Plan Administrator and its qualified tax counsel do not anticipate that
changes in the Plan after the date of the amendments covered by the Internal
Revenue Service determination letter will affect the qualified status of the
Plan.
6. PLAN TERMINATION
Although the Company has not expressed any intent to do so, the Company
retains the right under the Plan to discontinue contributions to or terminate
the Plan at any time, subject to the provisions of ERISA. In the event of
Plan termination, participants become 100% vested in their accounts.
7. RELATED PARTY TRANSACTIONS
The Company incurred approximately $110,523 and $109,068 of general and
administrative expenses of the Plan for 1993 and 1992, respectively.
8. UNALLOCATED ASSETS
At December 31, 1993 and 1992, contributions receivable of $10,510 and
$70,229 respectively, were not allocated to participant accounts.
9. PARTICIPANT NOTES RECEIVABLE
Beginning January 1, 1993, participants may borrow from their fund accounts
a minimum of $1,000 up to a maximum equal to the lessor of $50,000 or 50
percent of their account balance. Loan transactions are treated as a
transfer to (from) the investment fund from (to) the Participant Notes Fund.
Loan terms range from 1 to 5 years or up to 10 years for the purchase of a
primary residence. The loans are secured by the balance in the participant's
account and bear interest at a rate of one percent above prime at the time of
the loan. The interest rate is 7 percent for participants' notes outstanding
at December 31, 1993. Principal and interest are paid ratably through
bi-weekly payroll deductions.
13
<PAGE>
SCHEDULE 1
MORRISON KNUDSEN CORPORATION SAVINGS PLAN
ITEM 27 (a) - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1993
<TABLE>
<CAPTION>
Identity of Description of
Borrower Investment Cost Current Value
- - ----------- -------------- ------------ -------------
Common Stock
- - -------------
<S> <C> <C> <C>
Morrison Knudsen Corporation(1) Unrestricted Stock $ 3,137,677 $ 3,392,496
Morrison Knudsen Corporation(2) Restricted Stock 18,859,918 20,418,760
------------ -------------
$ 21,997,595 $ 23,811,256
------------ ------------
------------ ------------
MUTUAL FUNDS
T. Rowe Price Stable Value Fund $ 31,734,434 $ 31,734,434
T. Rowe Price International Stock Fund 4,245,187 5,178,697
T. Rowe Price New Asia Fund 1,887,762 2,574,435
T. Rowe Price Growth Stock Fund 12,120,156 14,107,936
T. Rowe Price New Era Fund 170,542 172,196
T. Rowe Price New Horizons Fund 4,566,071 5,023,236
T. Rowe Price New Income Fund 313,904 316,701
T. Rowe Price Prime Reserve Fund 2,907,801 2,907,801
T. Rowe Price Small-Cap Value Fund 1,257,683 1,423,535
T. Rowe Price Equity Index Fund 550,155 586,649
T. Rowe Price Global Government Bond Fund 76,814 75,900
T. Rowe Price U.S. Treasury Money Fund 1,373,801 1,373,802
T. Rowe Price Growth and Income Fund 1,614,415 1,673,131
T. Rowe Price Short-Term Bond Fund 263,674 262,586
T. Rowe Price High Yield Fund 574,790 608,080
T. Rowe Price New America Growth Fund 1,862,154 2,101,296
T. Rowe Price Science & Technology Fund 4,069,955 4,267,732
T. Rowe Price U.S. Treasury Inter. Fund 552,590 555,736
T. Rowe Price U.S. Treasury Long-Term Fund 409,090 407,752
T. Rowe Price GNMA Fund 543,271 538,291
T. Rowe Price Equity Income Fund 12,753,518 14,469,607
T. Rowe Price Capital Appreciation Fund 780,855 820,186
T. Rowe Price International Bond Fund 401,105 405,213
T. Rowe Price European Stock Fund 428,372 488,766
T. Rowe Price Spectrum Income Fund 502,679 507,028
T. Rowe Price Spectrum Growth Fund 730,515 762,150
------------ ------------
$ 86,691,293 $ 93,342,876
------------ ------------
------------ ------------
Participant Notes Receivable Promissory Notes $ 2,741,306 $ 2,741,306
------------ ------------
------------ ------------
(1) There were 135,025 shares of Morrison Knudsen Corporation stock held at
December 31, 1993.
(2) There were 812,687 shares of Morrison Knudsen Corporation stock held at
December 31, 1993.
</TABLE>
14
<PAGE>
SCHEDULE 2
MORRISON KNUDSEN CORPORATION SAVINGS PLAN
ITEM 27 (d) - SCHEDULE OF REPORTABLE TRANSACTIONS
SERIES OF SECURITY TRANSACTIONS IN EXCESS OF FIVE PERCENT
OF PLAN ASSETS AT THE BEGINNING OF THE YEAR
YEAR ENDED DECEMBER 31, 1993
<TABLE>
<CAPTION>
Identity of Description of Purchase Selling Cost of Net Gain
Party Involved Asset Price Price Asset or (Loss)
- - --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Morrison Knudsen
Corporation:
Restricted Stock Stock $ 8,193,906 $ 8,193,906 -
T. Rowe Price:
Stable Value Fund Pooled Investment $ 7,093,217 $ 7,093,217 -
T. Rowe Price:
Stable Value Fund Pooled Investment $ 9,014,011 $ 9,014,011 -
</TABLE>
15
<PAGE>
Exhibit 23
INDEPENDENT AUDITORS' CONSENT
To the Stockholders and Board of Directors
Morrison Knudsen Corporation
We consent to the incorporation by reference in Post-Effective Amendment No. 2
to Registration Statement No. 33-32415 of Morrison Knudsen Corporation on Form
S-8, dated December 3, 1991, of our report dated June 17, 1994 appearing in this
Annual Report on Form 11-K of the Morrison Knudsen Corporation Savings Plan for
the year ended December 31, 1993.
/s/ Deloitte & Touche
DELOITTE & TOUCHE
Boise, Idaho
June 17, 1994
