SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
______________
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Mark One):
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1996
---------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
---------- ---------
Commission File Number 1-4085
POLAROID PROFIT SHARING RETIREMENT PLAN
__________________________________________________________
(Full title of the plan; address is the same as
that of the issuer named below)
POLAROID CORPORATION
549 TECHNOLOGY SQUARE
CAMBRIDGE, MASSACHUSETTS 02139
__________________________________________________________
_____________
(Name of issuer of securities held pursuant to the plan
and the address of its principal executive office)
<PAGE>
POLAROID PROFIT SHARING RETIREMENT PLAN
INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTARY SCHEDULES
Page
----
Report of Independent Accountants. . . . . . . . . . . . . . . F-1
FINANCIAL STATEMENTS
Statement of Net Assets Available for Benefits -
as of December 31, 1996 and 1995 . . . . . . . . . . F-2
Statement of Changes in Net Assets Available for Benefits -
Years ended December 31, 1996 and 1995 . . . . . . . F-3
Notes to Financial Statements. . . . . . . . . . . . . . . . . F-4
SUPPLEMENTARY SCHEDULES
Item 27a - Form 5500:
Schedule of Assets Held for Investment Purposes -
as of December 31, 1996 . . . . . . . . . F-10
Item 27d - Form 5500:
Schedule of Reportable Transactions
Year ended December 31, 1996 . . . . . . . F-17
EXHIBIT INDEX
Exhibit 23 Consent of KPMG Peat Marwick LLP.
-2-
<PAGE>
SIGNATURE
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.
POLAROID PROFIT SHARING RETIREMENT PLAN
----------------------------------------
(Name of plan)
July 28, 1997 /s/ William J. O'Neill, Jr.
- ----------- ----------------------------------------
William J. O'Neill, Jr.
Chairman
Fund Manager
-3-
<PAGE>
Independent Auditors' Report
-----------------------------
The Board of Trustees
Polaroid Profit Sharing Retirement Plan:
We have audited the accompanying statements of net assets available for
benefits of the Polaroid Profit Sharing Retirement Plan as of December 31,
1996 and 1995, 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, the financial statements referred to above present fairly,
in all material respects, the net assets available for benefits of the Plan
as of December 31, 1996 and 1995, and the changes in the net assets
available for benefits for the years then ended in conformity with
generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of
assets held for investment purposes and reportable transactions are
presented for purposes 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.
The supplemental schedules have been subjected to the auditing procedures
applied in the audits of the basic financial statements and, in our
opinion, are fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
/s/ KPMG Peat Marwick LLP
June 6, 1997
F-1
<PAGE>
POLAROID PROFIT SHARING RETIREMENT PLAN
Statements of Net Assets Available for Benefits
December 31, 1996 and 1995
Assets 1996 1995
------ ---- ----
Investments (note 4) $ 539,321,614 534,316,919
Receivables:
Accrued interest and dividends 1,148,251 1,647,442
Due from investments sold 427,639 69,943
----------- -----------
Total receivables 1,575,890 1,717,385
----------- -----------
Total assets 540,897,504 536,034,304
----------- -----------
Liabilities
-----------
Administrative fees payable 195,917 87,330
Income distribution payable 284,977 287,869
Payable for investments purchased 498,635 2,034,126
----------- -----------
Total liabilities 979,529 2,409,325
----------- -----------
Net assets available for benefits $ 539,917,975 533,624,979
=========== ===========
See accompanying notes to financial statements.
F-2
<PAGE>
POLAROID PROFIT SHARING RETIREMENT PLAN
Statements of Changes in Net Assets Available for Benefits
Years Ended December 31, 1996 and 1995
1996 1995
--- ----
Additions to net assets attributed to:
Contributions:
Employee 401(k) contributions $ 15,632,193 20,356,830
Employee voluntary contributions 289,837 1,129,820
Rollover contributions 524,435 564,255
---------- ----------
Total contributions 16,446,465 22,050,905
---------- ----------
Investment income:
Dividends 29,259,248 23,037,119
Interest 8,486,533 9,715,213
Net appreciation in fair market
value of investments (note 4) 27,730,850 70,149,670
---------- ----------
Total investment income 65,476,631 102,902,002
---------- ----------
Total additions 81,923,096 124,952,907
---------- ----------
Deductions from net assets attributed to:
Benefit payments 74,769,644 47,154,827
Administrative fees 860,456 862,791
---------- ----------
Total deductions 75,630,100 48,017,618
---------- ----------
Net increase in net assets 6,292,996 76,935,289
Net assets available for benefits:
Beginning of year 533,624,979 456,689,690
---------- ----------
End of year $ 539,917,975 533,624,979
=========== ===========
See accompanying notes to financial statements.
F-3
<PAGE>
POLAROID PROFIT SHARING RETIREMENT PLAN
Notes to Financial Statements
December 31, 1996 and 1995
(1) Plan Description
The Polaroid Profit Sharing Retirement Plan (the "Plan") is a
defined contribution plan sponsored by Polaroid Corporation (the
"Company") covering substantially all domestic employees. The Plan
is subject to the provisions of the Employee Retirement Income
Security Act of 1974 (ERISA). Plan assets are held in safekeeping
under a master trust contract with the Trustee, Boston Safe Deposit
and Trust Company. Fidelity Investments serves as a secondary
trustee of the Plan assets. The investment advisors for the Plan
are Fidelity Investments, Merganser Capital Management Corporation,
and Mellon Bank, N.A.
The following description of the Plan provides only general
information. Participants should refer to the Plan document for a
more complete description of the Plan's provisions:
(a) Employee 401(k) Contributions
Employees may make elective pre-tax contributions of up to 14
percent of their pre-tax compensation through payroll deductions,
subject to limitations established by the Internal Revenue Service.
For purposes of calculating these contributions, compensation is
limited to $150,000.
(b) Employee Voluntary Contributions
Employees may voluntarily elect to make after-tax contributions of
up to 10 percent of their compensation through payroll deductions,
subject to limitations established by the Internal Revenue Service.
For purposes of calculating these contributions, compensation is
limited to $150,000.
(c) Participation and Vesting
Employees become participants upon their first day of employment and
are 100 percent vested in their accounts at all times.
(d) Benefits
Participants with account balances over $3,500 can elect to have
benefits paid in the form of a life annuity, a lump sum cash
payment, periodic installments, or stock for the stock portion of
the payment. Participants with accounts balances of $3,500 or less,
will receive their benefits in the form of a lump sum cash payment.
A lump sum distribution is also mandated to alternate payees who
have received a finalized qualified domestic relations order.
(e) Administrative Expenses
Administrative expenses are paid by the Plan unless the Company
elects to pay them. In 1996 and 1995, this election was not made.
(f) Participant Loans
Active employees of the Company who participate in the Plan are
eligible to take a loan from their account balance. Participants
may borrow up to 50% of their account balance, subject to a $1,000
minimum and $50,000 maximum loan amount. Loan balances are repaid
through after-tax payroll deductions and interest is charged on
outstanding loan balances at a rate of prime plus 1% (8.25%-8.5% in
1996 and 8.5%-9.0% in 1995).
(Continued)
F-4
<PAGE>
POLAROID PROFIT SHARING RETIREMENT PLAN
Notes to Financial Statements
(g) Participant Accounts
A separate account is established for each participant at the time
of enrollment in the Plan. Each participant's account is credited
with the participant's contribution and an allocation of Plan
earnings and charged with an allocation of administrative expenses.
Allocations are based on account balances. The participant's
contribution is credited in accordance with the directions given by
the participant in one or more of the following funds:
(h) Related Party Transactions
Certain Plan investments are shares of funds managed by Boston Safe
Deposit and Trust Company or Fidelity Investments. Boston Safe
Deposit and Trust Company is the trustee and Fidelity Investments is
the secondary trustee as defined by the Plan, and therefore, these
transactions qualify as party-in-interest.
Merganser Money Market Fund
---------------------------
The Fund's goal is to obtain the highest level of current income
possible, consistent with the preservation of capital and a stable
share price. The Fund invests in the highest quality money market
instruments of U.S. and foreign issuers, including short-term
corporate obligations, certificates of deposit, and U.S. government
obligations.
Fidelity Retirement Money Market Portfolio
------------------------------------------
The Fund strives to provide current income while maintaining a
stable investment value. It invests in high quality money market
instruments of U.S. and foreign issuers, including short-term
corporate obligations, U.S. government obligations and certificates
of deposit.
Merganser Conservative Bond Fund
--------------------------------
The Fund's goal is to earn returns that exceed inflation over a
market cycle with a low variability of returns and low risk of
principal loss. The Fund will maintain an average maturity of less
than three years and will invest in a diversified selection of fixed-
income securities of investment grade quality. The Fund was
formerly known as the Stable Income Fund.
Fidelity Investment Grade Bond Fund
-----------------------------------
The Fund seeks a rate of current income consistent with reasonable
risk. It invests in a broad array of fixed-income securities with
at least 65% of the Fund invested in debt securities.
Mellon/Merganser Balanced Fund
------------------------------
The Fund is designed to provide long-term growth through interest
and dividend income, plus appreciation from stocks. The Fund
invests approximately 50% of its assets in a S&P 500r index, and 50%
in high quality bonds.
Fidelity Growth & Income Portfolio
----------------------------------
The Fund seeks to provide long-term growth, current income, and
growth of income consistent with reasonable risk through investment
in mostly equity securities, from both the U.S. and abroad, that
offer growth of earnings while paying current dividends.
Fidelity Puritan(R) Fund
----------------------
The goal of the Fund is to provide as much income as possible while
preserving the value of the investments. Investments are made
across a variety of companies and industries, and its selection of
high yielding securities includes all types of common and preferred
stocks as well as bonds.
(Continued)
F-5
<PAGE>
POLAROID PROFIT SHARING RETIREMENT PLAN
Notes to Financial Statements
Mellon Common Stock Fund
------------------------
The Fund is designed to provide long-term growth of capital through
investment in companies that comprise the S&P 500(R).
Fidelity Blue Chip Growth Fund
------------------------------
The Fund seeks growth through investment in common stocks of well-
known, established growth companies that are generally considered
industry leaders.
Fidelity Contrafund
-------------------
The Fund is considered an aggressive growth fund and seeks to
achieve its objective of long-term capital growth by investing
primarily in common stocks from companies both in the U.S. and
abroad, which the Fund's manager believes are undervalued or out of
favor.
Fidelity Magellan(R) Fund
-----------------------
As an aggressive growth fund, the Fund attempts to achieve long-term
capital growth through investment in common and preferred stocks of
all types of companies in the U.S. and abroad.
Fidelity International Growth & Income Fund
-------------------------------------------
The Fund seeks both capital growth and current income through
investment in companies who mostly operate outside the United
States.
Fidelity Overseas Fund
----------------------
The Fund seeks capital growth through investment in common stock,
convertible securities, and debt instruments of companies that have
their principal business activity outside of the United States.
Mellon Asset Managed Fund
-------------------------
The Fund strives for long-term growth through investments in stocks,
bonds, and money market investments.
Fidelity Asset Manager TM
-------------------------
The Fund is designed to provide a high total return with reduced
risk over the long term. It is an aggressively managed asset
allocation fund with holdings in domestic and foreign (including
emerging markets) stocks, bonds, and short term investments.
Polaroid Stock Fund
-------------------
The assets of the Fund are invested in Polaroid Corporation common
stock. Participants may no longer designate contributions into this
Fund. Participants who are 55 or over may transfer amounts from
this Fund into other funds.
(2) Summary of Significant Accounting Policies
(a) Basis of Presentation
The accompanying financial statements have been prepared on an
accrual basis. Benefits payable at year-end are not required to be
accrued, as they are considered to be a component of the net assets
available for benefits.
(Continued)
F-6
<PAGE>
POLAROID PROFIT SHARING RETIREMENT PLAN
Notes to Financial Statements
(b) Investments
Investments are stated at fair market value. The fair market value
of marketable securities is based on quotations obtained from
national securities exchanges. Certain short-term obligations are
valued at cost, which when combined with accrued interest receivable
approximates fair market value. Participant loans are valued at
cost which approximates fair market value.
Securities transactions are recognized on the trade date (the date
the order to buy or sell is executed). Interest income is recorded
on the accrual basis and dividend income is recorded on the ex-
dividend date.
Net appreciation or depreciation of investments includes both
realized and unrealized gains and losses.
(c) Payment of Benefits
Benefits are recorded when paid.
(3) Federal Income Tax
On September 12, 1995, the Internal Revenue Service (the "IRS")
issued a Determination letter which stated that the Plan and its
underlying Trust qualify under Section 401(a) of the Internal
Revenue Code (the "Code") and therefore, is exempt from federal
income taxes under Section 501(a) of the Code.
(4) Investments
The following table presents investments at fair market value.
Investments that represent 5 percent or more of the Plan's net
assets are separately identified:
1996 1995
---- ----
U.S. Government and Agency Obligations $ 8,001,109 10,019,489
Certificates of Deposit 500,753 2,013,750
Short-term Corporate Debt 57,573,980 48,571,399
Long-term Corporate Debt 49,656,651 57,430,643
Other Investments 5,172,350 4,804,025
Polaroid Corporation Common Stock 12,930,636 15,789,661
Pooled Funds
Mellon Daily Opening Asset
Allocation Fund 85,166,644 86,141,912
Mellon Daily Opening Stock
Index Fund 48,689,801 43,258,750
Other pooled funds 3,208,286 5,519,314
Mutual Funds:
Fidelity Contrafund 47,035,438 36,197,326
Fidelity Magellanr Fund 27,855,305 35,049,462
Fidelity Puritanr Fund 31,292,301 30,860,380
Fidelity Blue Chip Growth Fund 45,293,675 50,724,867
Fidelity Growth & Income Portfolio 40,990,730 28,344,192
Other mutual funds 64,419,257 68,037,428
Participant Loans 11,534,698 11,554,321
----------- -----------
Total investments $ 539,321,614 534,316,919
=========== ===========
(Continued)
F-7
<PAGE>
POLAROID PROFIT SHARING RETIREMENT PLAN
Notes to Financial Statements
Net appreciation (depreciation) in fair market value of investments for
the years ended December 31, 1996 and 1995, is as follows:
1996 1995
---- ----
U.S. Government and Agency Obligations $ 61,199 833,264
Certificates of Deposit (13,750) 22,842
Short-term Corporate Debt 143,239 88,493
Long-term Corporate Debt (255,829) 2,540,099
Municipal Debt Obligations - 199,443
Polaroid Corporation Common Stock (1,291,483) 4,973,742
Pooled Funds 17,089,303 (179,326)
Mutual Funds 11,998,171 61,671,113
---------- ----------
Net appreciation of investments $ 27,730,850 70,149,670
========== ==========
(5) Unit Valuation
Participants' accounts are maintained on the "unit accounting"
concept. Unit values and the total units (in 000s) used in valuing
participants' accounts for each quarter since December 31, 1995 are
listed below.
Merganser Money Fidelity Retirement
Market Fund Money Market Portfolio
---------------- ----------------------
Unit Unit
Units Value Units Value
December 31, 1995 52,393 $ 1.00 26,710 $ 1.00
March 31, 1996 49,506 1.00 24,391 1.00
June 30, 1996 47,721 1.00 23,404 1.00
September 30, 1996 51,080 1.00 25,450 1.00
December 31, 1996 56,670 1.00 26,225 1.00
Merganser Conservative Fidelity Investment
Bond Fund Grade Bond Fund
---------------- ----------------------
Unit Unit
Units Value Units Value
December 31, 1995 5,144 $ 1.00 1,427 $ 1.00
March 31, 1996 4,853 1.00 1,461 1.00
June 30, 1996 4,507 1.00 1,368 1.00
September 30, 1996 4,414 1.00 1,305 1.00
December 31, 1996 4,291 1.00 1,251 1.00
Mellon/Merganser Fidelity Growth &
Balanced Fund Income Portfolio
---------------- ----------------------
Unit Unit
Units Value Units Value
December 31, 1995 2,853 $ 12.46 1,048 $ 27.05
March 31, 1996 2,727 12.84 1,171 28.40
June 30, 1996 2,570 13.22 1,275 29.32
September 30, 1996 2,532 13.55 1,322 28.98
December 31, 1996 2,472 14.38 1,334 30.73
Fidelity Mellon Common
Puritan(R) Fund StockFund
---------------- ----------------------
Unit Unit
Units Value Units Value
December 31, 1995 1,814 $ 17.01 1,872 $ 13.40
March 31, 1996 1,765 17.64 1,841 14.10
June 30, 1996 1,728 17.68 1,853 14.71
September 30, 1996 1,836 16.48 1,865 15.16
December 31, 1996 1,815 17.24 1,872 16.40
Fidelity Blue Chip Fidelity
Growth Fund Contrafund
---------------- ----------------------
Unit Unit
Units Value Units Value
December 31, 1995 1,649 $ 30.77 952 $ 38.02
March 31, 1996 1,525 31.32 1,008 38.14
June 30, 1996 1,403 32.23 1,120 39.34
September 30, 1996 1,444 30.89 1,100 40.54
December 31, 1996 1,386 32.69 1,116 42.15
Fidelity Fidelity International
Magellan(R) Fund Growth & Income Fund
---------------- ----------------------
Unit Unit
Units Value Units Value
December 31, 1995 408 $ 85.98 326 $ 17.95
March 31, 1996 393 87.51 343 18.26
June 30, 1996 410 74.80 322 18.87
September 30, 1996 369 76.05 311 19.11
December 31, 1996 345 80.65 304 19.55
(Continued)
F-8
<PAGE>
POLAROID PROFIT SHARING RETIREMENT PLAN
Notes to Financial Statements
Fidelity Mellon Asset
Overseas Fund Managed Fund
---------------- ----------------------
Unit Unit
Units Value Units Value
December 31, 1995 251 $29.07 6,500 $ 13.35
March 31, 1996 273 30.12 6,297 13.72
June 30, 1996 287 31.18 5,907 14.06
September 30, 1996 290 31.41 5,735 14.46
December 31, 1996 289 30.84 5,528 15.45
Fidelity Polaroid
Asset ManagerTM Stock Fund
---------------- ----------------------
Unit Unit
Units Value Units Value
December 31, 1995 1,113 $ 15.85 1,117 $ 14.23
March 31, 1996 1,004 16.01 1,065 13.56
June 30, 1996 937 16.27 1,023 13.80
September 30, 1996 899 16.49 1,004 13.35
December 31, 1996 876 16.47 981 13.25
(6) Plan Termination
Although it has expressed no intent to do so, the Company has the
right under the Plan to terminate the Plan. If the Plan were
terminated, all participants would remain 100 percent vested in
their accounts. Upon termination of the Plan, all accounts would be
distributed to the participants or their beneficiaries.
(7) Plan Amendments
The Plan may be amended at any time by the Company. However, no
amendment can reduce the amount of any participant's account or the
participant's vested percentage on that account. In addition,
notices of all amendments shall be given in writing to each
participant, or beneficiary of deceased participants of the Plan.
(Continued)
F-9
<PAGE>
POLAROID PROFIT SHARING RETIREMENT PLAN
Notes to Financial Statements
(8) Net Assets Available for Benefits by Fund as of December 31, 1996:
Fidelity
Merganser Retirement
Money Market Money Market
Fund Portfolio
---------- ----------
Assets:
Investments $ 57,026,508 26,224,737
Receivables:
Accrued interest and dividends 390,977 -
Due from investments sold 236,727 -
---------- ----------
Total receivables 627,704 -
---------- ----------
Total assets 57,654,212 26,224,737
---------- ----------
Liabilities:
Administrative fees payable 195,921 -
Income distribution payable 284,977 -
Payable for investments purchased 503,467 -
---------- ----------
Total liabilities 984,365 -
---------- ----------
Net assets available for benefits $ 56,669,847 26,224,737
========== ==========
Fidelity
Merganser Investment
Conservative Grade
Bond Fund Bond Fund
---------- ----------
Assets:
Investments 49,416,913 8,908,543
Receivables:
Accrued interest and dividends 558,293 -
Due from investments sold 191,503 -
---------- ----------
Total receivables 749,796 -
---------- ----------
Total assets 50,166,709 8,908,543
---------- ----------
Liabilities:
Administrative fees payable - -
Income distribution payable - -
Payable for investments purchased (283) -
---------- ----------
Total liabilities (283) -
---------- ----------
Net assets available for benefits 50,166,992 8,908,543
========== ==========
Fidelity
Growth &
Mellon/Merganser Income
Balanced Fund Portfolio
---------- ----------
Assets:
Investments 35,344,701 40,990,730
Receivables:
Accrued interest and dividends 194,446 -
Due from investments sold 10,349 -
---------- ----------
Total receivables 204,795 -
---------- ----------
Total assets 35,549,496 40,990,730
---------- ----------
Liabilities:
Administrative fees payable - -
Income distribution payable - -
Payable for investments purchased (1,107) -
---------- ----------
Total liabilities (1,107) -
---------- ----------
Net assets available for benefits 35,550,603 40,990,730
========== ==========
Fidelity Mellon
Puritan(R) Common
Fund Stock Fund
---------- ----------
Assets:
Investments 31,292,301 30,705,180
Receivables:
Accrued interest and dividends - 1,185
Due from investments sold - -
---------- ----------
Total receivables - 1,185
---------- ----------
Total assets 31,292,301 30,706,365
---------- ----------
Liabilities:
Administrative fees payable - -
Income distribution payable - -
Payable for investments purchased - (632)
---------- ----------
Total liabilities - (632)
---------- ----------
Net assets available for benefits 31,292,301 30,706,997
========== ==========
Fidelity
Blue Chip
Growth
Fund
----------
Assets:
Investments 45,293,675
Receivables:
Accrued interest and dividends -
Due from investments sold -
----------
Total receivables -
----------
Total assets 45,293,675
----------
Liabilities:
Administrative fees payable -
Income distribution payable -
Payable for investments purchased -
----------
Total liabilities -
----------
Net assets available for benefits 45,293,675
==========
(Continued)
F-10
<PAGE>
POLAROID PROFIT SHARING RETIREMENT PLAN
Notes to Financial Statements
(8) Net Assets Available for Benefits by Fund as of
December 1, 1996 (continued):
Fidelity
Fidelity Magellan(R)
Contrafund Fund
---------- ----------
Assets:
Investments 47,035,438 27,855,305
Receivables:
Accrued interest and dividends - -
Due from investments sold - -
---------- ----------
Total receivables - -
---------- ----------
Total assets 47,035,438 27,855,305
---------- ----------
Liabilities:
Administrative fees payable - -
Income distribution payable - -
Payable for investments purchased - -
---------- ----------
Total liabilities - -
---------- ----------
Net assets available for benefits 47,035,438 27,855,305
========== ==========
Fidelity
International Fidelity
Growth & Overseas
Income Fund Fund
---------- ---------
Assets:
Investments 5,942,183 8,922,167
Receivables:
Accrued interest and dividends - -
Due from investments sold - -
---------- ----------
Total receivables - -
---------- ----------
Total assets 5,942,183 8,922,167
---------- ----------
Liabilities:
Administrative fees payable - -
Income distribution payable - -
Payable for investments purchased - -
---------- ----------
Total liabilities - -
---------- ----------
Net assets available for benefits 5,942,183 8,922,167
========== ==========
Mellon Fidelity
Asset Managed Asset
Fund ManagerTM
---------- ----------
Assets:
Investments 85,399,958 14,421,624
Receivables:
Accrued interest and dividends 3,076 -
Due from investments sold - -
---------- ----------
Total receivables 3,076 -
---------- ----------
Total assets 85,403,034 14,421,624
---------- ----------
Liabilities:
Administrative fees payable (4) -
Income distribution payable - -
Payable for investments purchased (2,810) -
---------- ----------
Total liabilities (2,814) -
---------- ----------
Net assets available for benefits 85,405,848 14,421,624
========== ==========
Polaroid Participant
Stock Fund Loan Fund
---------- ----------
Assets:
Investments 13,006,953 11,534,698
Receivables:
Accrued interest and dividends 274 -
Due from investments sold (10,940) -
---------- ----------
Total receivables (10,666) -
---------- ----------
Total assets 12,996,287 11,534,698
---------- ----------
Liabilities:
Administrative fees payable - -
Income distribution payable - -
Payable for investments purchased - -
---------- ----------
Total liabilities - -
---------- ----------
Net assets available for benefits 12,996,287 11,534,698
========== ==========
Total
-----------
Assets:
Investments 539,321,614
Receivables:
Accrued interest and dividends 1,148,251
Due from investments sold 427,639
-----------
Total receivables 1,575,890
-----------
Total assets 540,897,504
-----------
Liabilities:
Administrative fees payable 195,917
Income distribution payable 284,977
Payable for investments purchased 498,635
-----------
Total liabilities 979,529
-----------
Net assets available for benefits 539,917,975
===========
F-11
<PAGE>
POLAROID PROFIT SHARING RETIREMENT PLAN
Notes to Financial Statements
(9) Changes in Net Assets Available for Benefits by Fund for
the Year Ended December 31, 1996:
Fidelity
Merganser Retirement
Money Market Money Market
Fund Portfolio
--------- ---------
Additions to net assets attributed to:
Contributions:
Employee 401(k) contributions $1,071,126 633,707
Employee voluntary contributions - 39,373
Rollover contributions - 5,248
--------- ---------
Total contributions 1,071,126 678,328
Investment income:
Dividends 2,508,257 1,292,117
Interest 2,860,884 -
Net appreciation (depreciation) in
fair market value of investments (7,729) 2,166
--------- ---------
Total investment income (loss) 5,361,412 1,294,283
--------- ---------
Total additions 6,432,538 1,972,611
--------- ---------
Deductions from net assets attributed to:
Benefit payments 10,597,284 6,663,831
Administrative fees 132,263 1,560
--------- ---------
Total deductions 10,729,547 6,665,391
--------- ---------
Net increase (decrease) before
interfund transfers (4,297,009) (4,692,780)
Loans issued (588,667) (292,242)
Loans repaid 787,104 513,082
Exchanges in 35,356,054 16,851,364
Exchanges out (26,981,328) (12,864,867)
--------- ---------
Net transfers 8,573,163 4,207,337
--------- ---------
Net increase (decrease) 4,276,154 (485,443)
Net assets available for benefits:
Beginning of year 52,393,693 26,710,180
--------- ---------
End of year $ 56,669,847 26,224,737
========== ==========
Fidelity
Merganser Investment
Conservative Grade
Bond Fund Bond Fund
--------- ---------
Additions to net assets attributed to:
Contributions:
Employee 401(k) contributions $ 993,036 276,014
Employee voluntary contributions - 15,600
Rollover contributions - 28,234
--------- ---------
Total contributions 993,036 319,848
Investment income:
Dividends 12,596 637,155
Interest 3,418,626 -
Net appreciation (depreciation) in
fair market value of investments (692,997) (412,567)
--------- ---------
Total investment income (loss) 2,738,225 224,588
--------- ---------
Total additions 3,731,261 544,436
--------- ---------
Deductions from net assets attributed to:
Benefit payments 6,945,827 917,569
Administrative fees 109,427 1,227
--------- ---------
Total deductions 7,055,254 918,796
--------- ---------
Net increase (decrease) before
interfund transfers (3,323,993) (374,360)
Loans issued (450,148) (87,333)
Loans repaid 380,835 89,643
Exchanges in 2,443,536 2,188,598
Exchanges out (6,037,550) (3,437,858)
--------- ---------
Net transfers (3,663,327) (1,246,950)
--------- ---------
Net increase (decrease) (6,987,320) (1,621,310)
Net assets available for benefits:
Beginning of year 57,154,312 10,529,853
--------- ---------
End of year $ 50,166,992 8,908,543
========== ==========
Fidelity
Growth &
Mellon/Merganser Income
Balanced Fund Portfolio
--------- ---------
Additions to net assets attributed to:
Contributions:
Employee 401(k) contributions $ 769,184 1,238,491
Employee voluntary contributions - 38,453
Rollover contributions - 120,794
--------- ---------
Total contributions 769,184 1,397,738
Investment income:
Dividends 474,022 2,027,869
Interest 1,171,126 -
Net appreciation (depreciation) in
fair market value of investments 3,400,711 4,545,082
--------- ---------
Total investment income (loss) 5,045,859 6,572,951
--------- ---------
Total additions 5,815,043 7,970,689
--------- ---------
Deductions from net assets attributed to:
Benefit payments 4,280,368 5,646,563
Administrative fees 62,466 2,403
--------- ---------
Total deductions 4,342,834 5,648,966
--------- ---------
Net increase (decrease) before
interfund transfers 1,472,209 2,321,723
Loans issued (404,438) (399,334)
Loans repaid 240,733 329,529
Exchanges in 1,171,366 20,559,384
Exchanges out (2,477,688) (10,164,764)
--------- ---------
Net transfers (1,470,027) 10,324,815
--------- ----------
Net increase (decrease) 2,182 12,646,538
Net assets available for benefits:
Beginning of year 35,548,421 28,344,192
--------- ---------
End of year $ 35,550,603 40,990,730
========== ==========
Fidelity Mellon
Puritan(R) Common
Fund Stock Fund
--------- ---------
Additions to net assets attributed to:
Contributions:
Employee 401(k) contributions $ 1,040,934 784,043
Employee voluntary contributions 29,012 -
Rollover contributions 16,466 -
--------- ---------
Total contributions 1,086,412 784,043
Investment income:
Dividends 3,670,687 655,149
Interest - 41,556
Net appreciation (depreciation) in
fair market value of investments 642,573 4,921,127
--------- ---------
Total investment income (loss) 4,313,260 5,617,832
--------- ---------
Total additions 5,399,672 6,401,875
--------- ---------
Deductions from net assets attributed to:
Benefit payments 3,939,052 2,712,122
Administrative fees 17,922 20,520
--------- ---------
Total deductions 3,956,974 2,732,642
Net increase (decrease) before
interfund transfers 1,442,698 3,669,233
Loans issued (240,805) (340,248)
Loans repaid 333,170 257,088
Exchanges in 4,721,667 7,454,280
Exchanges out (5,824,809) 5,422,917)
--------- ---------
Net transfers (1,010,777) 1,948,203
--------- ---------
Net increase (decrease) 431,921 5,617,436
Net assets available for benefits:
Beginning of year 30,860,380 25,089,561
--------- ---------
End of year $ 31,292,301 30,706,997
========== ==========
Fidelity
Blue Chip
Growth
Fund
Additions to net assets attributed to:
Contributions:
Employee 401(k) contributions $ 2,053,392
Employee voluntary contributions 45,632
Rollover contributions 46,890
----------
Total contributions 2,145,914
Investment income:
Dividends 3,424,246
Interest -
Net appreciation (depreciation) in
fair market value of investments 3,041,296
----------
Total investment income (loss) 6,465,542
----------
Total additions 8,611,456
----------
Deductions from net assets attributed to:
Benefit payments 6,108,855
Administrative fees 1,890
----------
Total deductions 6,110,745
Net increase (decrease) before
interfund transfers 2,500,711
Loans issued (741,392)
Loans repaid 627,009
Exchanges in 4,524,502
Exchanges out (12,342,022)
----------
Net transfers (7,931,903)
----------
Net increase (decrease) (5,431,192)
Net assets available for benefits:
Beginning of year 50,724,867
----------
End of year $ 45,293,675
==========
(Continued)
F-12
<PAGE>
(9) Changes in Net Assets Available for
Benefits by Fund for the Year Ended
December 31, 1996 (continued):
Fidelity
Fidelity Magellan(R)
Contrafund Fund
--------- ---------
Additions to net assets attributed to:
Contributions:
Employee 401(k) contributions $ 1,776,629 1,600,918
Employee voluntary contributions 35,025 38,718
Rollover contributions 91,443 103,463
--------- ---------
Total contributions 1,903,097 1,743,099
Investment income:
Dividends 3,908,275 5,182,959
Interest - -
Net appreciation (depreciation) in
fair market value of investments 4,565,029 (1,996,249)
--------- ---------
Total investment income (loss) 8,473,304 3,186,710
--------- ---------
Total additions 10,376,401 4,929,809
--------- ---------
Deductions from net assets attributed to:
Benefit payments 6,614,744 3,925,037
Administrative fees 6,953 13,452
--------- ---------
Total deductions 6,621,697 3,938,489
--------- ---------
Net increase (decrease) before
interfund transfers 3,754,704 991,320
Loans issued (455,054) (504,319)
Loans repaid 439,866 454,723
Exchanges in 27,629,156 2,975,656
Exchanges out (20,530,560) (11,111,537)
--------- ---------
Net transfers 7,083,408 (8,185,477)
--------- ---------
Net increase (decrease) 10,838,112 (7,194,157)
Net assets available for benefits:
Beginning of year 36,197,326 35,049,462
---------- ---------
End of year $ 47,035,438 27,855,305
========== ==========
Fidelity
International Fidelity
Growth & Overseas
Income Fund Fund
--------- ---------
Additions to net assets attributed to:
Contributions:
Employee 401(k) contributions $ 303,092 503,852
Employee voluntary contributions 17,218 14,345
Rollover contributions 26,410 56,536
--------- ---------
Total contributions 346,720 574,733
Investment income:
Dividends 195,707 553,310
Interest - -
Net appreciation (depreciation) in
fair market value of investments 510,616 493,193
--------- ---------
Total investment income (loss) 706,323 1,046,503
--------- ---------
Total additions 1,053,043 1,621,236
--------- ---------
Deductions from net assets attributed to:
Benefit payments 987,422 988,601
Administrative fees 209 766
--------- ---------
Total deductions 987,631 989,367
--------- ---------
Net increase (decrease) before
interfund transfers 65,412 631,869
Loans issued (61,927) (143,851)
Loans repaid 83,248 118,568
Exchanges in 1,493,882 3,633,450
Exchanges out (1,494,113) (2,613,858)
--------- ---------
Net transfers 21,090 994,309
--------- ---------
Net increase (decrease) 86,502 1,626,178
Net assets available for benefits:
Beginning of year 5,855,681 7,295,989
--------- ---------
End of year $ 5,942,183 8,922,167
========== ==========
Mellon Fidelity
Asset Managed Asset
Fund Manager TM
--------- ---------
Additions to net assets attributed to:
Contributions:
Employee 401(k) contributions $ 2,040,443 547,332
Employee voluntary contributions - 16,461
Rollover contributions - 28,951
--------- ---------
Total contributions 2,040,443 592,744
Investment income:
Dividends 3,353,242 1,176,218
Interest 39,086 -
Net appreciation (depreciation) in
fair market value of investments 9,400,872 609,211
--------- ---------
Total investment income (loss) 12,793,200 1,785,429
--------- ---------
Total additions 14,833,643 2,378,173
--------- ---------
Deductions from net assets attributed to:
Benefit payments 9,941,335 1,972,389
Administrative fees 488,919 479
--------- ---------
Total deductions 10,430,254 1,972,868
--------- ---------
Net increase (decrease) before
interfund transfers 4,403,389 403,305
Loans issued (787,701) (202,213)
Loans repaid 703,665 212,596
Exchanges in 5,968,702 826,442
Exchanges out (11,650,891) (4,465,863)
--------- ---------
Net transfers (5,766,225) (3,629,038)
--------- ---------
Net increase (decrease) (1,362,836) (3,223,733)
Net assets available for benefits:
Beginning of year 86,768,684 17,645,357
--------- ---------
End of year $ 85,405,848 14,421,624
========== ==========
Participant
Polaroid Loan
Stock Fund Fund
--------- ---------
Additions to net assets attributed to:
Contributions:
Employee 401(k) contributions $ - -
Employee voluntary contributions - -
Rollover contributions - -
--------- ---------
Total contributions - -
Investment income:
Dividends 187,439 -
Interest 2,583 952,672
Net appreciation (depreciation) in
fair market value of investments (1,291,484) -
--------- ---------
Total investment income (loss) (1,101,462) 952,672
--------- ---------
Total additions (1,101,462) 952,672
--------- ---------
Deductions from net assets attributed to:
Benefit payments 1,431,319 1,097,326
Administrative fees - -
--------- ---------
Total deductions 1,431,319 1,097,326
--------- ---------
Net increase (decrease) before
interfund transfers (2,532,781) (144,654)
Loans issued - 5,699,672
Loans repaid - (5,570,859)
Exchanges in - -
Exchanges out (377,414) -
--------- ---------
Net transfers (377,414) 128,813
--------- ---------
Net increase (decrease) (2,910,195) (15,841)
Net assets available for benefits:
Beginning of year 15,902,700 11,554,321
--------- ---------
End of year $ 12,992,505 11,538,480
========== ==========
Total
----------
Additions to net assets attributed to:
Contributions:
Employee 401(k) contributions $ 15,632,193
Employee voluntary contributions 289,837
Rollover contributions 524,435
----------
Total contributions 16,446,465
Investment income:
Dividends 29,259,248
Interest 8,486,533
Net appreciation (depreciation) in
fair market value of investments 27,730,850
----------
Total investment income (loss) 65,476,631
----------
Total additions 81,923,096
----------
Deductions from net assets attributed to:
Benefit payments 74,769,644
Administrative fees 860,456
----------
Total deductions 75,630,100
----------
Net increase (decrease) before
interfund transfers 6,292,996
Loans issued -
Loans repaid -
Exchanges in 137,798,039
Exchanges out (137,798,039)
----------
Net transfers -
----------
Net increase (decrease) 6,292,996
Net assets available for benefits:
Beginning of year 533,624,979
----------
End of year $ 539,917,975
==========
F-13
<PAGE>
POLAROID PROFIT SHARING RETIREMENT PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
December 31, 1996
Issuer Rate Maturity Par/Shares Cost Fair Value
- --------------------- ------ -------- ---------- --------- ----------
U.S. GOVERNMENT AND
AGENCY OBLIGATIONS:
FHLMC Group #87-0069 8.000% 04/01/08 614,626 $ 646,894 $626,259
FHLMC Group #16-1056 9.250% 09/01/08 7,127 6,944 7,550
FHLMC Group #85-0082 9.000% 10/01/05 1,485,542 1,590,459 1,540,974
FHLMC Group #54-4327 7.000% 05/01/06 189,891 195,587 188,661
FNMA Pool #0025278 8.250% 07/01/97 14,473 14,880 14,799
FNMA Pool #0028928 5.250% 12/01/98 155,136 155,911 151,505
FNMA Pool #0049622 6.000% 07/01/14 690,101 703,903 672,877
FNMA Pool #0107048 7.500% 08/01/04 1,021,556 1,066,249 1,021,901
FNMA Pool #0173835 6.500% 11/01/02 357,322 366,478 350,885
GNMA Pool #0024840 8.250% 05/15/08 55,160 51,955 56,625
Guaranteed Expt Trust 5.200% 10/15/04 711,111 711,111 680,371
Guaranteed Expt Trust 8.187% 12/15/04 2,193,338 2,265,649 2,330,140
Resolution Trust
Corp 92-15 CLAI 6.730% 07/25/27 360,592 360,310 358,562
--------- ---------
Total U.S. Government
and Agency Obligations 8,136,330 8,001,109
--------- ---------
CERTIFICATES OF DEPOSIT:
Potomac Electric Power 6.720% 05/26/97 500,000 500,753 500,753
--------- ---------
Total Certificates of Deposit 500,753 500,753
SHORT-TERM CORPORATE DEBT:
African Dev Bank 10.000% 11/01/97 500,000 516,382 516,382
Associates Corporation
North America 6.750% 07/15/97 752,000 755,588 755,588
BBL North America - 01/07/97 445,000 444,594 444,594
Bank of Montreal Discount - 01/10/97 3,000,000 2,995,762 2,995,762
Bell South Telecom Discount - 01/14/97 1,000,000 997,906 997,906
CFAC Grantor 9.400% 03/15/97 527,035 545,967 537,484
CFAC Grantor 6.450% 12/15/97 525,975 530,002 526,667
CFC Grantor Tr 11
Asset Bckd 8.900% 08/15/97 250,762 268,002 253,810
Capital Hldg Corp 9.790% 10/06/97 750,000 771,241 771,241
Cargill Inc Disc Variable 01/17/97 500,000 498,722 498,722
Caterpillar Finl Mtn 7.850% 02/23/97 1,300,000 1,302,169 1,302,169
Central Ill Lt Co Disc - 01/30/97 1,300,000 1,293,988 1,293,988
Chubb Cap Corp Disc - 01/06/97 2,500,000 2,498,108 2,498,108
Ciesco - 01/16/97 554,000 552,661 552,661
Commercial Cr Group 8.125% 03/01/97 1,000,000 1,003,688 1,003,688
COOP Assn Tractor Disc - 01/31/97 2,000,000 1,990,417 1,990,417
Corporate Ast Fdg Disc - 01/10/97 1,670,000 1,667,654 1,667,654
Ford Motor Co. 5.200% 01/01/97 500,000 500,000 500,000
General Electric Cap Disc - 01/27/97 500,000 498,361 498,361
General Electric Cap Disc - 01/02/97 1,100,000 1,099,832 1,099,832
General Electric Cap Disc - 01/03/97 550,000 549,832 549,832
General Electric Cap
Corp. Amort Note 6.200% 03/15/97 660,600 652,601 667,513
See accompanying auditors' report.
(Continued)
F-14
<PAGE>
POLAROID PROFIT SHARING RETIREMENT PLAN
Item 27a - Schedule of Assets Held for Investment Purposes (Continued)
Issuer Rate Maturity Par/Shares Cost Fair Value
- --------------------- ------ -------- ---------- --------- ----------
Heinz H J Co Disc - 01/13/97 910,000 $ 908,347 $ 908,347
Hitachi America Ltd Disc - 02/25/97 1,500,000 1,487,281 1,487,281
Hitachi Cr America Disc - 01/16/97 1,000,000 997,625 997,625
IMI Fed Corp USA Disc - 01/16/97 1,000,000 997,654 997,654
International Lease
Fin Corp 5.500% 03/03/97 500,000 499,735 499,735
International Lease
Fin Corp 8.060% 01/15/97 500,000 500,414 500,414
International Lease
Fin Corp 5.500% 04/01/97 300,000 299,757 299,757
KFW International
Fin Inc Disc - 01/10/97 2,400,000 2,396,610 2,396,610
Korea Dev Bank Disc - 01/23/97 713,000 710,603 710,603
Korea Dev Bank Disc - 02/13/97 916,000 909,435 909,435
Korea Dev Bank
Mtn TR00027 7.940% 03/25/97 1,100,000 1,105,552 1,105,552
La Caisse Central Disc - 01/13/97 3,850,000 3,839,887 3,839,887
Lehman Bros Inc
Sr Sub Notes 7.000% 05/15/97 1,000,000 1,005,000 1,003,860
Lucent Tech Inc Disc - 01/17/97 1,000,000 997,444 997,444
Merrill Lynch Co Disc - 01/17/97 1,100,000 1,097,189 1,097,189
Merrill Lynch Co Disc - 01/07/97 930,000 929,151 929,151
Merrill Lynch & Co
Inc Sr Note 7.250% 05/15/97 505,000 507,732 507,732
National Westmster
Bank Disc - 01/16/97 700,000 698,337 698,337
New Zealand Government
of Disc - 02/19/97 2,380,000 2,361,373 2,361,373
Norwest Financial 6.000% 08/15/97 ,2000,000 1,977,290 2,003,860
Otter Tail Pwr Co Disc - 01/08/97 1,561,000 1,559,164 1,559,164
Rabobank Nederland
Med Dep Notes 6.625% 05/26/97 1,000,000 1,014,661 1,014,661
St Michael Financial Disc - 02/05/97 2,000,000 1,988,722 1,988,722
St Paul Cos Inc Note 9.375% 06/15/97 400,000 406,456 406,456
Smith Barney Hldgs
Inc New Note 6.000% 03/15/97 1,600,000 1,600,310 1,600,310
Sweden Kingdom Disc - 02/03/97 500,000 497,479 497,479
UBS Fin Del Inc Disc - 01/09/97 600,000 599,200 599,200
Bank Tokyo Disc - 03/17/97 1,000,000 988,042 988,041
Sanwa Bank Ltd Disc - 01/16/97 1,750,000 1,745,837 1,745,837
Bank Tokyo IB Note 5.680% 02/12/97 1,000,000 999,885 999,885
---------- ----------
Total Short-Term Corporate Debt 57,559,649 57,573,980
LONG-TERM CORPORATE DEBT:
European Coal & Steel 5.330% 01/14/98 1,500,000 1,389,750 1,493,970
American Re Corp
Sr Sub Deb 10.875% 09/15/04 1,250,000 1,349,152 1,349,152
Associates Corp
Sr 00119 8.180% 02/15/05 1,000,000 1,051,250 1,076,250
Associates Corp NA
Sr 00242 5.990% 12/15/00 3,000,000 3,003,720 2,947,500
Case Equip Ln Tr
94-C A-2 8.100% 06/15/01 931,064 927,136 946,852
ChaseCredit Card Master
Tr 96-3CLA 7.090% 02/15/09 1,000,000 999,844 1,025,342
Chevy Chase Auto
Rectr-1 6.000% 12/15/01 1,373,086 1,372,657 1,375,309
College & University
Fac Ln 4.000% 06/01/99 197,569 189,574 196,202
Daiwa Mortgage Acceptance
Corporation 7.875% 10/25/19 111,958 113,085 111,949
Deutsche Bank Finl
Bk GTD 6.700% 12/13/06 1,000,000 996,910 981,250
Discover Card Corp
Ser II 9.000% 04/01/98 900,000 933,939 932,625
First Security
Tr 95-A 6.250% 01/15/01 1,156,414 1,155,872 1,161,871
Fleet Financial Home
Equity Tr 91-1A 8.450% 04/17/06 330,469 347,405 335,954
Fleet Financial Home
Equity 90-1 A-1 6.700% 01/16/06 661,878 672,820 661,922
See accompanying auditors' report.
(Continued)
F-15
<PAGE>
POLAROID PROFIT SHARING RETIREMENT PLAN
Item 27a - Schedule of Assets Held for Investment Purposes (Continued)
Issuer Rate Maturity Par/Shares Cost Fair Value
- --------------------- ------ -------- ---------- --------- ----------
Ford Motor Company
1992-A 6.875% 01/15/99 2,400,000 $2,400,980 $2,400,980
Ford Motor Company
Tr 00612 5.990% 02/27/01 2,000,000 1,954,480 1,952,500
Ford Motor Company
Tr 00613 6.620% 02/27/06 1,000,000 949,850 972,500
GE Home Equity Loan A/B
CTF 91-1 7.200% 09/15/11 577,684 595,014 581,547
Mid-St Trust II Mortgage
Backed NT C-A3 9.350% 04/01/98 1,680,000 1,732,956 1,714,944
Mobil Oil Corporation
ESOP 9.170% 02/29/00 519,500 554,700 542,228
Nationsbank Corp Sub
Notes 7.750% 08/15/15 500,000 527,812 515,625
Navistar Financial
95-A CL A-2 6.550% 11/20/01 1,488,680 1,487,983 1,500,595
Pemex Expt Grantor Tr
Ser 95-A 7.660% 08/15/01 2,274,906 2,267,581 2,349,234
Quebec Province
Canada 8.690% 02/22/01 2,900,000 3,205,834 3,110,250
SPNB Home Equity
LnCtf 91-2-A 8.100% 06/15/20 212,857 219,315 213,480
Salomon Inc Mtn
Sr 00070 6.625% 11/30/00 2,500,000 2,499,500 2,484,375
Shawmut National
Remic 92-A 6.400% 09/15/06 32,032 32,014 32,062
Standared Credit Card
1994-1 4.650% 03/07/99 500,000 498,653 498,653
Standard Credit Card
1990-3 9.500% 07/10/98 500,000 506,341 506,341
Swiss Banks Corp-NY
Sub Notes 7.250% 09/01/06 1,000,000 996,480 1,023,750
Travelers Mtg Sec Ser
84-1 2-2 12.000% 03/01/14 604,577 685,250 670,970
US Home Equity Loan
Ctf 91-2-A 8.500% 04/15/21 174,605 183,035 177,215
Yamaha Mtr Trd 1996-1 6.200% 05/15/03 3,000,000 2,992,500 2,970,320
---------- ----------
Total Long-Term Corporate Debt 49,477,200 49,656,651
POLAROID CORPORATION COMMON STOCK:
Polaroid Corporation* 297,256 9,698,336 12,930,636
PARTICIPANT LOANS:
1,817 outstanding loans
(interest rate 8.25%-8.5%)* 11,534,698 11,534,698 11,534,698
OTHER INVESTMENTS:
Israel State Notes 6.375% 12/15/05 700,000 675,290 661,500
Koreas Dev Bank Notes 6.250% 05/01/00 2,500,000 2,502,000 2,478,125
Midland Bank Plc
Shelf 1 7.625% 06/15/06 1,000,000 997,620 1,035,000
Texas Agriculture Tax
Cp Notes 5.460% 01/16/97 1,000,000 997,725 997,725
---------- ----------
Total Other Investments 5,172,635 5,172,350
POOLED FUNDS:
The Boston Company Daily
Liquidity Fund* 3,208,037 3,208,037 3,208,037
Mellon Temporary Investment Fund* 249 249 249
Mellon Daily Opening Stock Index Fund* 267,770 32,156,419 48,689,801
Mellon Daily Opening Asset
Allocation Fund* 598,349 61,567,735 85,166,644
---------- ----------
Total Pooled Funds 96,932,440 137,064,731
MUTUAL FUNDS:
Fidelity International
Growth & Income Fund* 303,948 5,373,010 5,942,185
Fidelity Asset ManagerTM* 875,630 12,935,736 14,421,625
Fidelity Contrafund* 1,115,906 38,807,285 47,035,438
Fidelity Investment Grade Bond Fund* 1,251,200 8,867,323 8,908,543
Fidelity Magellanr Fund* 345,385 26,006,733 27,855,305
Fidelity Retirement Money
Market Portfolio* 26,224,737 26,224,737 26,224,737
Fidelity Overseas Fund* 289,305 8,432,059 8,922,167
Fidelity Puritanr Fund* 1,815,099 28,506,742 31,292,301
Fidelity Growth & Income Portfolio* 1,333,899 33,527,966 40,990,730
Fidelity Blue Chip Growth Fund* 1,385,551 37,829,007 45,293,675
------------- ------------
Total Mutual Funds 226,510,598 256,886,706
------------- ------------
Total Assets Held for Investment Purposes $ 465,522,639 $539,321,614
============== ============
See accompanying auditors' report.
*Party-in-interest
F-16
<PAGE>
<TABLE>
<CAPTION>
POLAROID PROFIT SHARING RETIREMENT PLAN
Item 27d - Schedule of Reportable Transactions
Year Ended December 31, 1996
(f) Current Value
(a) Identity of (b) Description (c) Purchase (d) Selling (e) Cost of of Asset on (g) Net Gain
Party Involved of Asset Price Price Asset Transaction Date or (Loss)
- --------------------- ---------------- -------------- ------------ ----------- ---------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Mellon Trust* Daily Liquidity Fund $ 447,472,132 447,472,132 447,472,132
Mellon Trust* Daily Liquidity Fund 449,783,409 449,783,409 449,783,409 -
Fidelity Investments* Fidelity Puritanr Fund 9,812,058 9,812,058 9,812,058
10,022,588 9,233,437 10,022,588 789,151
Fidelity Investments* Fidelity Magellanr Fund 10,371,398 10,371,398 10,371,398
15,554,346 15,129,780 15,554,346 424,566
Fidelity Investments* Fidelity Contrafund 33,890,536 33,890,536 33,890,536
27,607,311 29,051,696 27,607,311 (1,555,615)
Fidelity Investments* Fidelity Investment Grade 3,235,243 3,235,243 3,235,243
Bond Fund 4,457,065 4,463,871 4,457,065 (6,806)
Fidelity Investments* Fidelity Growth & Income 24,314,520 24,314,520 24,314,520
Portfolio 16,219,722 14,620,835 16,219,722 1,598,887
Fidelity Investments* Fidelity Overseas Fund 4,880,06 4,880,062 4,880,062
3,753,908 3,604,345 3,753,908 149,563
Fidelity Investments* Fidelity International 2,119,557 2,119,557 2,119,557
Growth & Income Fund 2,545,274 2,430,857 2,545,274 114,417
Fidelity Investments* Fidelity Blue Chip 10,736,453 10,736,453 10,736,453
Growth Fund 19,194,158 17,179,806 19,194,158 2,014,352
Fidelity Investments* Fidelity Asset Manager 2,807,998 2,807,998 2,807,998
6,668,199 6,076,691 6,668,199 591,508
Fidelity Investments* Fidelity Retirement 19,337,053 19,337,053 19,337,053
Money Market Portfolio 19,822,497 19,822,497 19,822,497 -
</TABLE>
*Denotes party-in-interest
See accompanying auditors' report.
F-17
EXHIBIT 23
Independent Auditors' Consent
The Board of Directors
Polaroid Corporation:
We consent to the use of our report included herein.
/s/ KPMG Peat Marwick LLP
KPMG Peat Marwick LLP
Boston, Massachusetts
July 28, 1997
