<PAGE>
===============================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-------------------
FORM 11-K
(Mark One)
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
/x/ SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1993
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 1-8940
--------------------------
Entenmann's, Inc. Employee Savings Plan
55 Paradise Lane, Bay Shore, New York 11706
(Full title of the plan)
PHILIP MORRIS COMPANIES INC.
120 Park Avenue
New York, New York 10017
(Name of issuer of the securities held pursuant to the plan
and address of its principal executive office.)
===============================================================================
<PAGE>
ENTENMANN'S, INC. EMPLOYEE SAVINGS PLAN
ANNUAL REPORT ON FORM 11-K
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1993
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page(s)
-------
<S> <C>
Report of Independent Accountants.............................. 3
Financial Statements:
Statements of Financial Condition as of December 31,
1993 and 1992............................................... 4-5
Statements of Income and Changes in Plan Equity for
the years ended December 31, 1993, 1992 and 1991............ 6-8
Notes to Financial Statements................................ 9-17
Signatures..................................................... 18
Schedules:
Schedule I - Investments as of December 31, 1993............. S-1-4
</TABLE>
Other schedules are omitted because the information required
is contained in the financial statements.
Exhibits:
23. Consent of Independent Accountants.
-2-
<PAGE>
REPORT of INDEPENDENT ACCOUNTANTS
To: The Corporate Employee Plans Investment
Committee of Philip Morris Companies Inc.,
the Corporate Employee Benefit Committee of
Philip Morris Companies Inc., the Management
Committee for Employee Benefits of Kraft General
Foods, Inc., the Entenmann's, Inc. Employee Savings
Plan Committee and all Participants as a group
(but not individually) of the Entenmann's, Inc. Employee
Savings Plan:
We have audited the accompanying statements of financial condition of the
Entenmann's, Inc. Employee Savings Plan (the "Plan") as of December 31, 1993 and
1992, and the related statements of income and changes in plan equity for each
of the three years in the period ended December 31, 1993 and the schedule of
investments as of December 31, 1993. These financial statements and the
financial statement schedule are the responsibility of the fiduciaries of the
Plan appointed by Philip Morris Companies Inc., Kraft General Foods, Inc. or
Entenmann's, Inc. (or their delegates). Our responsibility is to express an
opinion on these financial statements and the financial statement schedule 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 position of the Plan as of December 31,
1993 and 1992, and the income and changes in plan equity for each of the three
years in the period ended December 31, 1993, in conformity with generally
accepted accounting principles. In addition, in our opinion, the financial
statement schedule referred to above, when considered in relation to the basic
financial statements taken as a whole, presents fairly, in all material
respects, the information required to be included therein.
COOPERS & LYBRAND
Chicago, Illinois
March 30, 1994
-3-
<PAGE>
ENTENMANN'S, INC. EMPLOYEE SAVINGS PLAN
STATEMENT of FINANCIAL CONDITION
as of December 31, 1993
(in thousands of dollars)
----------
<TABLE>
<CAPTION>
Diversified
Equity Interest Participants'
Index Income Philip Morris Loan
Fund Fund Stock Fund Account Total
----------- -------- ------------- ------------- -------
<S> <C> <C> <C> <C> <C>
ASSETS:
Trust net assets $2,461 $11,157 $30,551 $1,207 $45,376
Employer contributions
receivable (payable) 145 (16) 574 703
Employee contributions
receivable (payable) 59 (6) 171 224
Participants' loan
repayments receivable
(payable) 17 37 218 (187) 85
Interfund receivables
(payables) 326 91 (417) -
------ ------- ------- ------ -------
Total assets 3,008 11,263 31,097 1,020 46,388
------ ------- ------- ------ -------
LIABILITIES:
Distributions and
withdrawals payable
(receivable) (12) 76 166 6 236
Undistributed
participants' loans 2 19 28 (49) -
------ ------- ------- ------ -------
Total liabilities (10) 95 194 (43) 236
------ ------- ------- ------ -------
Plan equity $3,018 $11,168 $30,903 $1,063 $46,152
====== ======= ======= ====== =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
-4-
<PAGE>
ENTENMANN'S, INC. EMPLOYEE SAVINGS PLAN
STATEMENT of FINANCIAL CONDITION
as of December 31, 1992
(in thousands of dollars)
----------
<TABLE>
<CAPTION>
Diversified
Equity Interest Participants'
Index Income Philip Morris Loan
Fund Fund Stock Fund Account Total
----------- -------- ------------- ------------- -------
<S> <C> <C> <C> <C> <C>
ASSETS:
Trust net assets $1,668 $9,822 $41,330 $ 955 $53,775
Employer contributions
receivable 1 4 32 37
Employee contributions
receivable 6 22 68 96
Participants' loan
repayments receivable 4 13 17
------ ------ ------- ------ -------
Total assets 1,675 9,852 41,443 955 53,925
------ ------ ------- ------ -------
LIABILITIES:
Distributions and
withdrawals payable 61 296 573 930
Undistributed
participants' loans 2 48 (50) -
------ ------ ------- ------ -------
Total liabilities 61 298 621 (50) 930
------ ------ ------- ------ -------
Plan equity $1,614 $9,554 $40,822 $1,005 $52,995
====== ====== ======= ====== =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
-5-
<PAGE>
ENTENMANN'S, INC. EMPLOYEE SAVINGS PLAN
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
for the year ended December 31, 1993
(in thousands of dollars)
----------
<TABLE>
<CAPTION>
Diversified
Equity Interest Participants'
Index Income Philip Morris Loan
Fund Fund Stock Fund Account Total
----------- -------- ------------- ------------- -------
<S> <C> <C> <C> <C> <C>
ADDITIONS:
Employer contributions $ 116 $ 263 $ 1,473 $ 1,852
Employee contributions 362 917 2,579 3,858
Trust investment
activities:
Interest income 1 773 19 $ 101 894
Dividend income 1,377 1,377
Net (depreciation)
appreciation in
fair value of
investments 196 (11,416) (11,220)
------ ------- ------- ------ -------
197 773 (10,020) 101 (8,949)
------ ------- ------- ------ -------
Total (deductions)
additions 675 1,953 (5,968) 101 (3,239)
------ ------- ------- ------ -------
DEDUCTIONS:
Distributions and
withdrawals (349) (1,137) (2,084) (40) (3,610)
General and administrative
expenses 3 3
------ ------- ------- ------ -------
Total deductions (349) (1,134) (2,084) (40) (3,607)
------ ------- ------- ------ -------
Net transfers among funds 1,111 796 (1,907) -
Participants' loans (61) (114) (394) 569 -
Participants' loan repayments 28 113 434 (572) 3
------ ------- ------- ------ -------
Net (deductions)
additions 1,404 1,614 (9,919) 58 (6,843)
------ ------- ------- ------ -------
PLAN EQUITY:
Beginning of year 1,614 9,554 40,822 1,005 52,995
------ ------- ------- ------ -------
End of year $3,018 $11,168 $30,903 $1,063 $46,152
====== ======= ======= ====== =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
-6-
<PAGE>
ENTENMANN'S, INC. EMPLOYEE SAVINGS PLAN
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
FOR THE YEAR ENDED DECEMBER 31, 1992
(in thousands of dollars)
----------
<TABLE>
<CAPTION>
Diversified
Equity Interest Participants'
Index Income Philip Morris Loan
Fund Fund Stock Fund Account Total
----------- -------- ------------- ------------- -------
<S> <C> <C> <C> <C> <C>
ADDITIONS:
Employer contributions $ 34 $ 138 $ 1,388 $ 1,560
Employee contributions 220 903 2,869 3,992
Trust investment
activities:
Interest income 742 21 $ 66 829
Dividend income 1,272 1,272
Net (depreciation)
appreciation in
fair value of
investments 123 (1,662) (1,539)
------ ------- ------- ------ -------
123 742 (369) 66 562
------ ------- ------- ------ -------
Total additions 377 1,783 3,888 66 6,114
------ ------- ------- ------ -------
DEDUCTIONS:
Distributions and
withdrawals (245) (1,546) (6,139) (102) (8,032)
General and administrative
expenses (11) (11)
------ ------- ------- ------ -------
Total deductions (245) (1,557) (6,139) (102) (8,043)
------ ------- ------- ------ -------
Net transfers among funds 37 531 (568) -
Participants' loans (16) (163) (549) 728 -
Participants' loan repayments 15 77 243 (335) -
------ ------- ------- ------ -------
Net (deductions)
additions 168 671 (3,125) 357 (1,929)
PLAN EQUITY:
Beginning of year 1,446 8,883 43,947 648 54,924
------ ------- ------- ------ -------
End of year $1,614 $ 9,554 $40,822 $1,005 $52,995
====== ======= ======= ====== =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
-7-
<PAGE>
ENTENMANN'S, INC. EMPLOYEE SAVINGS PLAN
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
for the year ended December 31, 1991
(in thousands of dollars)
----------
<TABLE>
<CAPTION>
Diversified
Equity Interest Participants'
Index Income Philip Morris Loan
Fund Fund Stock Fund Account Total
----------- -------- ------------- ------------- -------
<S> <C> <C> <C> <C> <C>
ADDITIONS:
Employer contributions $ 19 $ 131 $ 1,274 $ 1,424
Employee contributions 181 1,005 2,546 3,732
Trust investment
activities:
Interest income 1 765 23 $ 47 836
Dividend income 1,017 1,017
Net appreciation in
fair value of
investments 348 15,075 15,423
------ ------ ------- ---- -------
349 765 16,115 47 17,276
------ ------ ------- ---- -------
Total additions 549 1,901 19,935 47 22,432
------ ------ ------- ---- -------
DEDUCTIONS:
Distributions and
withdrawals (128) (1,187) (3,933) (31) (5,279)
General and administrative
expenses (12) (12)
------ ------ ------- ---- -------
Total deductions (128) (1,199) (3,933) (31) (5,291)
------ ------ ------- ---- -------
Net transfers among funds (157) (1,062) 1,219 -
Participants' loans (21) (123) (233) 377 -
Participants' loan repayments 13 78 167 (258) -
------ ------ ------- ---- -------
Net additions
(deductions) 256 (405) 17,155 135 17,141
PLAN EQUITY:
Beginning of year 1,190 9,288 26,792 513 37,783
------ ------ ------- ---- -------
End of year $1,446 $8,883 $43,947 $648 $54,924
====== ====== ======= ==== =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
-8-
<PAGE>
ENTENMANN'S INC. EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. General Description of the Plan:
The Entenmann's, Inc. Employee Savings Plan (the "Plan") is a defined
contribution plan designed to encourage employees to save for retirement by
providing eligible employees with an opportunity to invest a portion of their
compensation and to share in the profits of Entenmann's, Inc. ("Entenmann's")
by making such contribution. Entenmann's is a wholly owned subsidiary of
Kraft General Foods, Inc. ("KGF"), which, in turn, is a subsidiary of Philip
Morris Companies Inc. (the "Company").
Salaried and hourly employees of Entenmann's and certain of its domestic
subsidiaries (the "Entenmann's Companies") who are not represented by a
collective bargaining unit, are eligible to participate in the Plan, provided
they meet eligibility requirements. After completing one year of service,
eligible employees generally may make before-tax and after-tax contributions.
Matching contributions by Entenmann's from Entenmann's profits (the
"Entenmann's Contributions") are contributed to the Plan in accordance with
the formula described in Note 3. The provisions of the Plan are detailed in
the official Plan document which legally governs the operation of the Plan.
The administration of the Plan has generally been delegated to the
Management Committee for Employee Benefits of KGF (the "Committee") comprised
of employees of KGF. The Committee has appointed the Entenmann's, Inc.
Employee Savings Plan Committee (the "Administrative Committee") to handle
certain Plan administration matters. The Corporate Employee Plans Investment
Committee of Philip Morris Companies Inc. (the "Investment Committee") (the
Committee, the Administrative Committee and the Investment Committee,
collectively the "Fiduciaries") is responsible for the selection of the
investment options in which participants invest their assets in the Plan and
monitors the performance of these investment options.
Assets of the Plan are invested in an investment fund known as the
Entenmann's, Inc. Employee Savings Plan Trust (the "Trust") (Note 7).
Bankers Trust Company (the "Trustee") has been appointed Trustee of the
Trust.
Participants have the option of investing their Plan Accounts (Note 4) in
5% increments, with a 10% minimum, in the three funds listed below.
Effective July 1, 1991, participants may invest Entenmann's Contributions in
any of the three investment funds. Prior to July 1, 1991, Entenmann's
Contributions were invested in the Philip Morris Stock Fund and, once fully
vested, could be invested at the direction of the participant.
DIVERSIFIED EQUITY INDEX FUND - This fund is invested primarily in an
index fund of stocks on a weighted average basis in approximately the same
proportion as the Standard & Poor's Composite Index of 500 Stocks ("S&P
500").
-9-
<PAGE>
ENTENMANN'S, INC. EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(continued)
INTEREST INCOME FUND - This fund consists primarily of investment
contracts entered into by the Trustee with financial institutions, each
of which agrees to repay in full the amounts invested with the
institution, plus interest. Beginning January 1, 1993, the assets of the
Interest Income Fund have also been invested in pools of mortgage-backed
and asset-backed securities, corporate bonds, and obligations of the
United States government and its agencies. As an integral part of the
purchase of each pool of these investments for the Interest Income Fund,
a financial institution agrees to protect the pool to the extent its
market value fluctuates, but not in the event of a default of any
security in the pool.
PHILIP MORRIS STOCK FUND - This fund is invested in the common stock, $1
par value, of the Company (the "Common Stock") and short-term temporary
investments.
None of the foregoing funds guarantees a return to the participant.
Participants may change their options effective the first day of the calendar
quarter.
Each participant may vote all the shares of Common Stock held in his or her
Accounts and invested in the Philip Morris Stock Fund. The Trustee will vote
full and fractional shares of the Common Stock in accordance with each
individual participant's instruction. The Trustee votes those shares of
Common Stock for which no or inadequate voting instructions have been
received in the same proportions as the shares for which instructions have
been received.
At December 31, 1993 and 1992, there were 1,765 and 1,688 participants,
respectively, some of whom elected to invest in more than one fund. Set forth
below is the number of participants investing in each fund.
<TABLE>
<CAPTION>
DECEMBER 31,
------------
1993 1992
----- -----
<S> <C> <C>
Diversified Equity Index Fund 548 320
Interest Income Fund 1,140 725
Philip Morris Stock Fund 1,654 1,270
</TABLE>
Each participant is at all times fully vested in the balance of his or her
After-Tax Contributions Account, Before-Tax Contributions Account, Rollover
Account and in the balance of his or her Company Contribution Account
attributable to amounts contributed on or before December 31, 1985 (Note 4).
A participant shall be fully vested in the balance in
-10-
<PAGE>
ENTENMANN'S, INC. EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(continued)
his or her Company Contribution Account upon attainment of age 65,
retirement, termination due to work force reduction, permanent and total
disability or death. A participant who is employed by the Company or any
subsidiary shall be fully vested in his or her Company Contribution Account
upon completion of five years of service.
Forfeitures:
Entenmann's Contributions forfeited by terminated participants are used to
reduce future Entenmann's Contributions to the Plan.
2. Summary of Significant Accounting Policies:
Valuation of Trust Investments:
Investments in common trust funds of the General Employee Benefit Common
Trust of Bankers Trust Company ("GEBT") are valued on the basis of the
relative interest of each participating investor (including each
participant) in the fair value of the underlying assets of each of the
respective GEBT common trust funds. Investment contracts and the pools of
mortgage-backed and asset-backed securities and other investments held in
the Interest Income Fund are recorded at their contract values, which
represent contributions and reinvested income, less any withdrawals plus
accrued interest.
Securities listed on an exchange are valued at the closing price on the
last business day of the year; listed securities for which no sale was
reported on that date are recorded at the last reported bid price.
Securities that are not listed on an exchange are generally traded in
active markets and valued by the Trustee from quoted market prices.
Short-term temporary investments are generally carried at cost, which
approximates fair value.
Investment Transactions and Investment Income of the Trust:
Investment transactions are accounted for on the dates purchases or sales
are executed. Realized gains and losses are computed on the basis of
average cost of investments sold. Dividend income is recorded on the ex-
dividend date; interest income is recorded as earned on an accrual basis.
In accordance with the policy of stating investments at fair value, the
net appreciation (depreciation) in the fair value of investments reflects
both realized gains or losses and the change in the unrealized
appreciation of investments held at year-end (Note 8).
-11-
<PAGE>
ENTENMANN'S, INC. EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(continued)
3. Contributions:
No contribution is required from any eligible employee under the Plan.
Eligible employees may make contributions on a before-tax basis, an after-tax
basis, or in a combination of the two. Basic Contributions are those made on
an after-tax basis ("After-Tax Basic Contributions") and before-tax basis
("Before-Tax Basic Contributions") that are not in excess of 6% of each
compensation payment to the participant. Contributions in excess of 6% of
each compensation payment to the participant and up to 11% of each
compensation payment are referred to as Supplemental Contributions, which may
be made only on an after-tax basis. The percentage of compensation available
for both before-tax and after-tax contributions varies from year-to-year in
order that the aggregate contributions actually made by participants do not
cause the Plan to violate limitations on such contributions set forth in the
Internal Revenue Code of 1986, as amended (the "Code"). The Code also
imposes a dollar limitation on the amount of before-tax contributions for a
calendar year. For 1993, a participant's before-tax contributions were
limited to $8,994; for 1994, each participant's before-tax contributions will
be limited to $9,240.
Each year Entenmann's Contributions are based on the amount of each
participant's Basic Contributions to the Plan. Entenmann's Contributions are
equal to 50% of participants' Basic Contributions, subject to certain
limitations under the Code.
Participants' contributions are recorded in the period in which they are
withheld by the Entenmann's Companies. Entenmann's Contributions for the
year are accrued by the Plan based upon the amount to be funded each year in
accordance with the Plan's formula noted above.
Entenmann's Contributions are discretionary. While Entenmann's has not
expressed any intent to discontinue making Entenmann's Contributions, it is
free to do so at any time. Entenmann's Contributions and participant
contributions are subject to specified limitations as described in the Code
and the Employee Retirement Income Security Act of 1974, as amended
("ERISA").
The Plan provides, in the event of a Change of Control (as defined in the
Plan) of the Company, for Entenmann's Contributions for the year in which the
Change of Control occurs and for two years thereafter (the "Control Period")
equal to $.50 for each $1 of the first 5% of the aggregate compensation of
the participants for each year during the Control Period.
-12-
<PAGE>
ENTENMANN'S, INC. EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(continued)
4. Valuation of Participant Accounts:
The Trustee maintains Accounts for each participant to reflect the source
and the participant's share of the funds invested in the Trust:
<TABLE>
<CAPTION>
Account Source
------- ------
<S> <C>
Company Contribution Account Entenmann's Contributions
Before-Tax Contributions Account Before-Tax Basic Contributions
After-Tax Contributions Account After-Tax Basic and Supplemental
Contributions
Rollover Account Amounts transferred (directly or
indirectly) from another plan
qualified under Section 401(a) of
the Code
Loan Account Outstanding loans obtained from the
Plan
</TABLE>
At the end of each month, the Trustee determines the current fair value of
each fund in the Trust. The fair value of each participant's share in the
Trust is determined with respect to their Company Contribution, Before-Tax
Contributions, After-Tax Contributions and Rollover Accounts on the basis of
their proportionate share in each fund.
5. Withdrawals and Distributions:
Participants may make withdrawals against their Company Contribution,
Before-Tax Contributions, After-Tax Contributions and Rollover Accounts under
limited circumstances in accordance with the provisions outlined in the Plan.
Upon termination of employment, including retirement, a participant has
several options available, as described in the Plan, with respect to the
distribution of his or her Accounts. Normally, distributions are made one
month after such termination.
-13-
<PAGE>
ENTENMANN'S INC. EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(continued)
In the event the Plan is terminated, distributions will be made in accordance
with the current value of participants' Accounts under the direction of the
Committee and in accordance with the Code.
6. Participants' Loans:
The loan program permits participants to borrow from their Before-Tax
Contributions Account in accordance with the provisions outlined in the Plan.
A participant's Loan Account equals the principal amount of his or her loans
outstanding. The principal amount of loan repayments reduce the Loan Account
and are added back to the participant's Before-Tax Contributions Account. The
repaid amount (including interest) is reinvested in the funds according to
the participant's current investment authorization.
Participants' loans are carried at the original principal amount less
principal repayments. Participants' loan repayments receivable represent
amounts withheld by the Entenmann's Companies from participants' compensation
and not yet remitted to the Plan. Amounts to be disbursed under employee
loan agreements are recorded as undistributed participants' loans as of the
loan agreement date.
7. Investments Held by the Trust:
The Trust is comprised solely of the assets of the Plan.
Most expenses incurred in administering the Plan are borne by Entenmann's,
with the exception of brokerage commissions, investment management fees and
transfer taxes, which are paid by the Trust. Expenses paid by Entenmann's
are not reflected in the financial statements of the Plan.
Investments that represented five percent or more of total Trust assets as
of December 31, 1993 and 1992 were:
<TABLE>
<CAPTION>
1993 1992
------- -------
<S> <C> <C>
Philip Morris Stock Fund
Common Stock $29,543 $40,548
Diversified Equity Index Fund $2,461 -
</TABLE>
The GEBT Equity Index Fund currently includes the Common Stock.
-14-
<PAGE>
ENTENMANN'S, INC. EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(in thousands of dollars, except per unit data)
(continued)
At December 31, 1993 and 1992 the financial position of the Trust was:
<TABLE>
<CAPTION>
1993 1992
------- -------
<S> <C> <C>
Assets:
Investments at fair value:
Diversified Equity Index Fund
(cost $1,621 and $927) $ 2,461 $ 1,668
Philip Morris Stock Fund:
Common stock
(cost $14,109 and $13,268) 29,543 40,548
Short-term temporary investments
(cost approximates fair value) 660 437
Interest Income Fund:
Investment contracts
(cost approximates fair value) 10,365 8,903
Short-term temporary investments
(cost approximates fair value) 725 854
Participants' Loan Account:
Loans to participants 1,175 956
------- -------
Total investments 44,929 53,366
Receivables:
Interest income 101 65
Dividend income 346 344
------- -------
Net assets $45,376 $53,775
======= =======
</TABLE>
The number of employee participation units and the net asset value per unit
for the funds at December 31, 1993 and 1992 were:
<TABLE>
<CAPTION>
Diversified
Equity Interest Participants'
Index Income Philip Morris Loan
Fund Fund Stock Fund Account Total
----------- -------- ------------- ------------- -------
<S> <C> <C> <C> <C> <C>
1993:
Net assets $2,461 $11,157 $30,551 $1,207 $45,376
Number of
participation units 490 3,974 3,973
Net asset value per
unit $5.0224 $2.8075 $7.6897
1992:
Net assets $1,668 $9,822 $41,330 $955 $53,775
Number of
participation units 362 3,775 4,064
Net asset value per
unit $4.6077 $2.6019 $10.1698
</TABLE>
-15-
<PAGE>
ENTENMANN'S, INC. EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(in thousands of dollars)
(continued)
8. Net (Depreciation) Appreciation in Fair Value of Trust Investments:
The realized gains and losses on disposals and changes in unrealized
appreciation of investments in the Trust for the years ended December 31,
1993, 1992 and 1991 were:
<TABLE>
<CAPTION>
Diversified
Equity
Index Philip Morris
Fund Stock Fund Total
----------- ------------- -------
<S> <C> <C> <C>
1993
----
Realized gains:
Proceeds $265 $ 1,189 $ 1,454
Cost 168 759 927
---- ------- -------
Net realized gains 97 430 527
---- ------- -------
Unrealized appreciation:
Beginning of year 741 27,280 28,021
End of year 840 15,434 16,274
---- ------- -------
(Decrease) increase 99 (11,846) (11,747)
---- ------- -------
Net (depreciation)
appreciation in
fair value of
investments $196 ($11,416) ($11,220)
==== ======= =======
1992
----
Realized gains:
Proceeds $210 $ 3,439 $ 3,649
Cost 116 1,372 1,488
---- ------- -------
Net realized gains 94 2,067 2,161
---- ------- -------
Unrealized appreciation:
Beginning of year 712 31,009 31,721
End of year 741 27,280 28,021
---- ------- -------
Increase (decrease) 29 (3,729) (3,700)
---- ------- -------
Net appreciation
(depreciation) in
fair value of
investments $123 ($ 1,662) ($ 1,539)
==== ======= =======
</TABLE>
-16-
<PAGE>
ENTENMANN'S, INC. EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(in thousands of dollars)
(concluded)
<TABLE>
<CAPTION>
Diversified
Equity
Index Philip Morris
Fund Stock Fund Total
----------- ------------- -------
<S> <C> <C> <C>
1991
----
Realized gains:
Proceeds $458 $ 7,819 $ 8,277
Cost 372 6,234 6,606
---- ------- -------
Net realized gains 86 1,585 1,671
---- ------- -------
Unrealized appreciation:
Beginning of year 450 17,519 17,969
End of year 712 31,009 31,721
---- ------- -------
Increase 262 13,490 13,752
---- ------- -------
Net appreciation
in fair value of
investments $348 $15,075 $15,423
==== ======= =======
</TABLE>
9. Tax Status:
The U.S. Treasury Department has determined that the Plan, as amended and in
effect as of November 18, 1986, constitutes a qualified plan under Section
401(a) of the Code and the related Trust is, therefore, exempt from Federal
income taxes under the provisions of Section 501(a) of the Code. The Plan has
been amended since that date. These amendments have been drafted to comply
with the provisions of the Code applicable to qualified plans. The
Fiduciaries believe that the Plan, as so amended, continues to comply with
the applicable provisions of the Code and that the Plan continues to be
administered in accordance with the applicable provisions of the Code.
Participants will not be subject to income tax on Entenmann's Contributions,
before-tax contributions made on their behalf by the Entenmann's Companies or
with respect to rollover contributions when made to the Trust, nor on
earnings credited to their Accounts until withdrawn or distributed.
-17-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Management Committee for Employee Benefits of Kraft General Foods, Inc., having
administrative responsibility of the Plan, has duly caused this annual report to
be signed by the undersigned thereunto duly authorized.
ENTENMANN'S, INC.
EMPLOYEE SAVINGS PLAN
(Name of Plan)
By /s/ DANIEL M. DRESSEL
-------------------------------------
Daniel M. Dressel, Chairman,
Management Committee for Employee
Benefits of Kraft General Foods, Inc.
Date: April 12, 1994
-18-
<PAGE>
ENTENMANN'S, INC. EMPLOYEE SAVINGS PLAN
SCHEDULE I - INVESTMENTS as of December 31, 1993
<TABLE>
<CAPTION>
Column A Column B Column C Column D
-------- --------------- ----------- -----------
Face Amount Cost
or Number Basis of
Name of Issuer and Title of Issue of Shares/Units Investments Fair Value
- --------------------------------- --------------- ----------- -----------
<S> <C> <C> <C>
PHILIP MORRIS STOCK FUND -- 67.2%
Common Stock -- 65.7%
Tobacco -- 65.7%
Philip Morris Companies Inc. 531,111 $14,108,788 $29,543,049
Short-Term Investments -- 1.5%
GEBT Pyramid Directed
Account Cash Fund 659,703 659,703 659,703
----------- -----------
Total Philip Morris Stock Fund 14,768,491 30,202,752
----------- -----------
DIVERSIFIED EQUITY INDEX FUND -- 5.5%
GEBT Pyramid Equity Index Fund -- 5.5% 2,489 1,620,622 2,460,636
----------- -----------
Total Diversified Equity Index Fund 1,620,622 2,460,636
----------- -----------
INTEREST INCOME FUND -- 24.7%
Investment Contracts -- 23.1%
Participation Contracts with Institutions -- 19.3%
Aetna Life Ins.
#LT 10218 DYA 1988 8.94%
matures 1/3/94 1,409,497 1,409,497 1,409,497
Confederation Life Ins. Co.
GIC# 61702 9.85%
matures 3/15/94 1,051,398 1,051,398 1,051,398
New York Life Ins. Co.
#05939 9.35%
matures 8/26/95 1,516,350 1,516,350 1,516,350
Provident Mutual Life Ins. Co.
#8142-001 8.72%
matures 12/31/95 955,932 955,932 955,932
</TABLE>
S-1
<PAGE>
ENTENMANN'S, INC. EMPLOYEE SAVINGS PLAN
SCHEDULE I - INVESTMENTS as of December 31, 1993
<TABLE>
<CAPTION>
Column A Column B Column C Column D
-------- --------------- ----------- ----------
Face Amount Cost
or Number Basis of
Name of Issuer and Title of Issue of Shares/Units Investments Fair Value
- --------------------------------- --------------- ----------- ----------
<S> <C> <C> <C>
Participation Contracts with Institutions (continued)
Ohio National Life Co.
#5265 8.47%
matures 3/1/96 428,242 $ 428,242 $ 428,242
Prudential Insurance Co. of America
GA-7270 6.05%
matures 6/30/96 2,176,138 2,176,138 2,176,138
Metropolitan Life Ins. Co.
Acct# 12891 6.64%
matures 12/15/96 1,120,246 1,120,246 1,120,246
---------- ----------
Total Contracts 8,657,803 8,657,803
---------- ----------
Financial Institution Pools -- 3.8%
National Westminster Bank
No. SAM 0104C 5.80%
GEBT Short-Term Investment Fund 684 684 684
Federal Home Loan Mtg. Corporation
matures 6/15/99 6.00% 82,500 82,168 82,168
Federal National Mortgage Association
matures 6/25/2005 6.25% 44,000 44,302 44,302
Federal Home Loan Mtg. Corporation
matures 8/15/2005 6.25% 22,000 22,421 22,421
Federal National Mortgage Association
matures 8/25/2005 6.00% 9,625 9,565 9,565
Federal National Mortgage Association
matures 8/25/2005 6.00% 68,200 67,883 67,883
Federal National Mortgage Association
matures 11/25/2005 7.00% 121,000 124,962 124,962
Federal Home Loan Mtg. Corporation
matures 3/15/2007 6.75% 33,000 34,060 34,060
Federal Home Loan Mtg. Corporation
matures 5/15/2007 6.25% 53,350 53,381 53,381
Federal Home Loan Mtg. Corporation
matures 4/15/2008 6.50% 13,750 13,809 13,809
Federal Home Loan Mtg. Corporation
matures 8/15/2008 6.50% 68,904 69,544 69,544
</TABLE>
S-2
<PAGE>
ENTENMANN'S, INC. EMPLOYEE SAVINGS PLAN
SCHEDULE I - INVESTMENTS as of December 31, 1993
<TABLE>
<CAPTION>
Column A Column B Column C Column D
-------- --------------- ----------- ----------
Face Amount Cost
or Number Basis of
Name of Issuer and Title of Issue of Shares/Units Investments Fair Value
- --------------------------------- --------------- ----------- ----------
<S> <C> <C> <C>
Financial Institution Pools (continued)
Federal Home Loan Mtg. Corporation
matures 4/15/2011 5.00% 44,000 $ 43,998 $ 43,998
Federal National Mortgage Association
matures 8/25/2012 5.60% 29,425 29,519 29,519
Federal National Mortgage Association
matures 8/25/2013 6.70% 77,000 77,196 77,196
Federal National Mortgage Association
matures 9/25/2015 6.00% 44,000 44,833 44,833
Federal Home Loan Mtg. Corporation
matures 12/15/2015 6.50% 53,350 54,566 54,566
Federal National Mortgage Association
matures 6/25/2016 5.70% 81,400 82,076 82,076
Federal National Mortgage Association
matures 7/25/2016 5.65% 43,670 43,880 43,880
Federal National Mortgage Association
matures 6/15/2018 7.00% 5,830 6,110 6,110
Federal National Mortgage Association
matures 1/25/2020 7.00% 77,000 79,780 79,780
Federal Home Loan Mtg. Corporation
matures 5/15/2021 6.50% 14,300 13,916 13,916
-------- --------
Total National Westminster Bank Contract 998,653 998,653
-------- --------
Provident Life & Accident
GAC No. 63005582 5.50%
GEBT Short-Term Investment Fund 10,640 10,640 10,640
Federal Home Loan Mtg. Corporation
matures 9/15/2002 4.85% 57,500 58,360 58,360
Federal Home Loan Mtg. Corporation
matures 1/15/2008 5.78% 57,500 57,171 57,171
Federal Home Loan Mtg. Corporation
matures 9/15/2008 6.00% 53,680 55,202 55,202
Federal Home Loan Mtg. Corporation
matures 10/15/2008 5.90% 65,320 65,630 65,630
Federal National Mortgage Association
matures 6/25/2013 5.00% 52,900 53,639 53,639
</TABLE>
S-3
<PAGE>
ENTENMANN'S, INC. EMPLOYEE SAVINGS PLAN
SCHEDULE I - INVESTMENTS as of December 31, 1993
<TABLE>
<CAPTION>
Column A Column B Column C Column D
-------- --------------- ----------- -----------
Face Amount Cost
or Number Basis of
Name of Issuer and Title of Issue of Shares/Units Investments Fair Value
- --------------------------------- --------------- ----------- -----------
<S> <C> <C> <C>
Financial Institution Pools (continued)
Federal National Mortgage Association
matures 11/25/2013 5.50% 57,500 $ 57,680 $ 57,680
Federal National Mortgage Association
matures 3/25/2018 5.75% 57,500 58,604 58,604
Federal National Mortgage Association
matures 9/25/2019 5.50% 57,500 56,979 56,979
Federal National Mortgage Association
matures 10/25/2022 5.40% 60,950 62,821 62,821
Federal National Mortgage Association Pool
matures 4/1/2023 6.50% 57,500 58,112 58,112
Federal National Mortgage Association
matures 8/25/2023 3.00% 64,400 56,188 56,188
Federal Home Loan Mtg. Corporation
matures 10/15/2023 7.00% 55,532 57,619 57,619
----------- -----------
Total Provident Life & Accident Contract 708,645 708,645
----------- -----------
Total Pools 1,707,298 1,707,298
----------- -----------
Total Investment Contracts 10,365,101 10,365,101
----------- -----------
Short-term Investments -- 1.6%
GEBT Pyramid Discretionary Cash Fund 724,832 724,832 724,832
----------- -----------
Total Interest Income Fund 11,089,933 11,089,933
----------- -----------
PARTICIPANTS' LOAN ACCOUNT -- 2.6%
GEBT Pyramid Discretionary Fund 12 12 12
Participants' Loans 1,175,400 1,175,400
----------- -----------
Total Participants' Loan Account 1,175,412 1,175,412
----------- -----------
TOTAL INVESTMENTS $28,654,458 $44,928,733
=========== ===========
</TABLE>
S-4
<PAGE>
Exhibit 23
CONSENT of INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the Philip Morris Companies
Inc. registration statement on Form S-8 (File No. 33-38781) of the Entenmann's,
Inc. Employee Savings Plan of our report dated March 30, 1994, on our audits of
the financial statements of the Entenmann's, Inc. Employee Savings Plan as of
December 31, 1993 and 1992 and for the years ended December 31, 1993, 1992 and
1991, and the financial statement schedule as of December 31, 1993, which report
is included in this annual report on Form 11-K.
COOPERS & LYBRAND
Chicago, Illinois
April 13, 1994
