SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 11-K
ANNUAL REPORT
Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
For the fiscal year ended December 31, 1993
Potlatch Corporation Savings Plan for Hourly Employees of the
Pulp and Paperboard and Consumer Products Divisions,
Lewiston, Idaho
Potlatch Corporation
One Maritime Plaza, San Francisco, California 94111
<PAGE>
POTLATCH CORPORATION SAVINGS PLAN FOR HOURLY EMPLOYEES OF THE
PULP AND PAPERBOARD AND CONSUMER PRODUCTS DIVISIONS,
LEWISTON, IDAHO
Table of Contents
-----------------
Page Numbers
------------
Independent Auditors' Report 1
Statements of Financial Condition 2
Statements of Income and Changes in Plan Equity 3 - 4
Notes to Financial Statements 5 - 6
Item 30a - Schedule of Assets Held for Investment Purposes 7
Item 30d - Schedule of Reportable Transactions 8
Signatures 9
Exhibit Index 10
<PAGE>
Independent Auditors' Report
----------------------------
Potlatch Corporation, Plan Administrator
Potlatch Corporation Savings Plan for Hourly
Employees of the Pulp and Paperboard and
Consumer Products Divisions, Lewiston, Idaho:
We have audited the statements of financial condition of Potlatch Corporation
Savings Plan for Hourly Employees of the Pulp and Paperboard and Consumer
Products Divisions, Lewiston, Idaho as of December 31, 1993 and 1992 and the
related statements of income and changes in plan equity for the years then
ended. These financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the aforementioned financial statements present fairly the
financial position of Potlatch Corporation Savings Plan for Hourly Employees
of the Pulp and Paperboard and Consumer Products Divisions, Lewiston, Idaho
as of December 31, 1993 and 1992 and the income and changes in plan equity
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 supplementary information
included in Schedules I and II is presented for the purpose of additional
analysis and is not a required part of the basic financial statements, but is
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The supplemental information has been subjected to the
auditing procedures applied in the audits of the basic financial statements
and, in our opinion, is fairly stated in all material respects in relation to
the basic financial statements taken as a whole.
KPMG PEAT MARWICK
April 8, 1994
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<PAGE>
POTLATCH CORPORATION SAVINGS PLAN FOR HOURLY
EMPLOYEES OF THE PULP AND PAPERBOARD AND
CONSUMER PRODUCTS DIVISIONS, LEWISTON, IDAHO
Statements of Financial Condition
At December 31, 1993 and 1992
<TABLE>
<CAPTION>
1993 1992 1993 1992
---- ---- ---- ----
<S> <C> <C> <S> <C> <C>
Assets: Liabilities and Equity:
Fixed Income Fund: Fixed Income Fund:
Putnam Fiduciary Trust Company
GIC Fund $ 5,634,364 $ 4,648,433 Fund equity $ 5,634,364 $ 4,648,433
----------- ----------- ----------- -----------
5,634,364 4,648,433 5,634,364 4,648,433
----------- ----------- ----------- -----------
George Putnam Fund: George Putnam Fund:
George Putnam Fund of Boston 305,441 15,175 Fund equity 305,441 15,175
----------- ----------- ----------- -----------
305,441 15,175 305,441 15,175
----------- ----------- ----------- -----------
Convertible Fund: Convertible Fund:
Putnam Convertible Income-Growth
Fund 2,624,299 2,199,232 Fund equity 2,624,299 2,199,232
----------- ----------- ----------- -----------
2,624,299 2,199,232 2,624,299 2,199,232
----------- ----------- ----------- -----------
Growth and Income Fund: Growth and Income Fund:
Putnam Fund for Growth and Income 652,395 29,292 Fund equity 652,395 29,292
----------- ----------- ----------- -----------
652,395 29,292 652,395 29,292
----------- ----------- ----------- -----------
Voyager Fund: Voyager Fund:
Putnam Voyager Fund 1,451,683 55,704 Fund equity 1,451,683 55,704
----------- ----------- ----------- -----------
1,451,683 55,704 1,451,683 55,704
----------- ----------- ----------- -----------
Stock Fund: Stock Fund:
Cash and equivalents 989 2,760 Forfeitures 989 2,759
Potlatch Corporation common
stock, 162,289 shares (135,416
shares in 1992) 7,647,862 6,229,158 Fund equity 7,647,862 6,229,159
----------- ----------- ----------- -----------
7,648,851 6,231,918 7,648,851 6,231,918
----------- ----------- ----------- -----------
$18,317,033 $13,179,754 $18,317,033 $13,179,754
=========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements.
</TABLE>
-2-
<PAGE>
POTLATCH CORPORATION SAVINGS PLAN FOR HOURLY
EMPLOYEES OF THE PULP AND PAPERBOARD AND
CONSUMER PRODUCTS DIVISIONS, LEWISTON, IDAHO
Statements of Income and Changes in Plan Equity
For the Year Ended December 31, 1993
<TABLE>
<CAPTION>
Growth
Fixed George and
Income Putnam Convertible Income Voyager Stock
Fund Fund Fund Fund Fund Fund Total
------ ------ ----------- ------ ------- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Income on fund transactions:
Interest income $ 335,908 $ - $ - $ - $ - $ 46 $ 335,954
Dividend and other income - 18,902 205,939 39,548 49,398 226,160 539,947
---------- -------- ---------- -------- ---------- ---------- -----------
335,908 18,902 205,939 39,548 49,398 226,206 875,901
---------- -------- ---------- -------- ---------- ---------- -----------
Market value appreciation of assets - - 170,309 5,524 113,728 243,718 533,279
---------- -------- ---------- -------- ---------- ---------- -----------
Contributions (Note 2):
Employee 1,028,511 212,780 287,668 429,185 795,266 981,418 3,734,828
Employer - - - - - 695,816 695,816
---------- -------- ---------- -------- ---------- ---------- -----------
1,028,511 212,780 287,668 429,185 795,266 1,677,234 4,430,644
---------- -------- ---------- -------- ---------- ---------- -----------
Transfers from other funds 1,099,276 94,126 159,284 193,716 862,966 538,149 2,947,517
---------- -------- ---------- -------- ---------- ---------- -----------
Total increases 2,463,695 325,808 823,200 667,973 1,821,358 2,685,307 8,787,341
---------- -------- ---------- -------- ---------- ---------- -----------
Less distributions, forfeitures and
transfers to other accounts:
Distributions to participating
employees:
Cash 279,491 2,614 114,992 14,643 22,626 245,848 680,214
Market value of shares
distributed in settlement
of employees' accounts - - - - - 16,534 16,534
Forfeitures and other adjustments
to employer contributions - - - - - 995 995
Transfers to other funds 1,198,273 29,896 283,141 30,227 402,753 1,003,227 2,947,517
---------- -------- ---------- -------- ---------- ---------- -----------
1,477,764 32,510 398,133 44,870 425,379 1,266,604 3,645,260
---------- -------- ---------- -------- ---------- ---------- -----------
Market value depreciation of assets - 3,032 - - - - 3,032
---------- -------- ---------- -------- ---------- ---------- -----------
Total decreases 1,477,764 35,542 398,133 44,870 425,379 1,266,604 3,648,292
---------- -------- ---------- -------- ---------- ---------- -----------
Net increase in equity 985,931 290,266 425,067 623,103 1,395,979 1,418,703 5,139,049
Equity at beginning of period 4,648,433 15,175 2,199,232 29,292 55,704 6,229,159 13,176,995
---------- -------- ---------- -------- ---------- ---------- -----------
Equity at end of period $5,634,364 $305,441 $2,624,299 $652,395 $1,451,683 $7,647,862 $18,316,044
========== ======== ========== ======== ========== ========== ===========
The accompanying notes are an integral part of these financial statements.
</TABLE>
-3-
<PAGE>
POTLATCH CORPORATION SAVINGS PLAN FOR HOURLY
EMPLOYEES OF THE PULP AND PAPERBOARD AND
CONSUMER PRODUCTS DIVISIONS, LEWISTON, IDAHO
Statements of Income and Changes in Plan Equity
For the Year Ended December 31, 1992
<TABLE>
<CAPTION>
Growth
Fixed George and
Income Putnam Convertible Income Voyager Stock
Fund Fund Fund Fund Fund Fund Total
------ ------ ----------- ------ ------- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Income on fund transactions:
Interest income $ 269,633 $ - $ 199 $ - $ - $ 1,680 $ 271,512
Dividend and other income - - 103,963 - 1,405 169,210 274,578
---------- ------- ---------- ------- ------- ---------- -----------
269,633 - 104,162 - 1,405 170,890 546,090
---------- ------- ---------- ------- ------- ---------- -----------
Market value appreciation of assets 33 35 242,217 275 - 840,609 1,083,169
---------- ------- ---------- ------- ------- ---------- -----------
Contributions (Note 2):
Employee 1,310,293 15,140 470,687 29,017 54,621 1,049,581 2,929,339
Employer - - - - - 628,669 628,669
---------- ------- ---------- ------- ------- ---------- -----------
1,310,293 15,140 470,687 29,017 54,621 1,678,250 3,558,008
Transfers from other funds 243,618 - 72,886 - - 89,939 406,443
---------- ------- ---------- ------- ------- ---------- -----------
Total increases 1,823,577 15,175 889,952 29,292 56,026 2,779,688 5,593,710
---------- ------- ---------- ------- ------- ---------- -----------
Less distributions, forfeitures and
transfers to other accounts:
Distributions to participating
employees:
Cash 301,674 - 67,933 - - 295,202 664,809
Market value of shares
distributed in settlement
of employees' accounts - - - - - 8,427 8,427
Forfeitures and other adjustments
to employer contributions - - - - - 657 657
Transfers to other funds 87,880 - 92,976 - - 225,587 406,443
---------- ------- ---------- ------- ------- ---------- -----------
389,554 - 160,909 - - 529,873 1,080,336
---------- ------- ---------- ------- ------- ---------- -----------
Market value depreciation of assets - - - - 322 - 322
---------- ------- ---------- ------- ------- ---------- -----------
Total decreases 389,554 - 160,909 - 322 529,873 1,080,658
---------- ------- ---------- ------- ------- ---------- -----------
Net increase in equity 1,434,023 15,175 729,043 29,292 55,704 2,249,815 4,513,052
Equity at beginning of period 3,214,410 - 1,470,189 - - 3,979,344 8,663,943
---------- ------- ---------- ------- ------- ---------- -----------
Equity at end of period $4,648,433 $15,175 $2,199,232 $29,292 $55,704 $6,229,159 $13,176,995
========== ======= ========== ======= ======= ========== ===========
The accompanying notes are an integral part of these financial statements.
</TABLE>
-4-
<PAGE>
POTLATCH CORPORATION SAVINGS PLAN FOR HOURLY EMPLOYEES OF THE
PULP AND PAPERBOARD AND CONSUMER PRODUCTS DIVISIONS,
LEWISTON, IDAHO
Notes to Financial Statements
Years Ended December 31, 1993 and 1992
Note 1. Principal Accounting Policies
- - --------------------------------------
Investments are presented at current market value in the accompanying
statements. Current market value is determined at the financial statement date
by the plan trustee and is generally based on quoted market prices. The
financial statements presented herein are prepared on the accrual basis of
accounting.
Note 2. General
- - ----------------
The plan is subject to the provisions of the Employee Retirement Income
Security Act of 1974.
Effective December 1, 1992, Putnam Fiduciary Trust Company became
trustee of the plan's assets. Prior to that date, Wells Fargo Bank, N.A. was
trustee. Also effective December 1, 1992, the plan added three investment
options and made other significant changes to plan provisions. A discussion
of the new investment options and other plan changes is included in the
following paragraphs.
Each eligible hourly employee who elects to participate in the plan
makes deferred contributions, up to 15% of monthly earnings. Deferred
contributions are deducted before income taxes are withheld. Participants
may invest in any combination of six investment funds: a fixed income fund, a
stock fund and four mutual funds. The four mutual funds are: the Putnam
Convertible Income-Growth Trust, the Putnam Fund for Growth and Income, the
Putnam Voyager Fund and the George Putnam Fund of Boston. The latter three
funds were added effective December 1, 1992. The Fixed Income Fund is also a
Putnam Fund (the Putnam Fiduciary Trust Company GIC Fund) and became an
investment option at December 1, 1992, replacing the IDS Trust Income Fund
maintained at Wells Fargo Bank. Employer matching contributions to the plan
on behalf of each participant equal 50% of the participant's deferred
contributions, provided that in no event may the employer match more than 3%
of the participant's earnings. Employer matching contributions are invested
in company stock. Federal tax rules place certain limitations on employee
and employer contributions.
Effective December 1, 1992, the plan provides that an eligible employee
may make a rollover contribution to the plan equal to all or part of a prior
distribution from another employer's qualified plan, subject to certain
restrictions.
Separate accounts are maintained for each participant's deferred and
rollover employee contributions by investment fund and a matching account is
maintained for each participant's employer matching contributions. The
accounts are credited with contributions and earnings or losses attributable
to such contributions.
-5-
<PAGE>
Note 2. General (cont.)
- - ------------------------
A participant may transfer past deferred and rollover contributions
among funds at any time. Prior to December 1, 1992, a participant could
transfer past deferred contributions at the end of each quarter.
A participant's interest in his or her deferred accounts is fully vested
and nonforfeitable at all times. A participant's interest in the matching
account becomes vested based on the participant's years of service as defined
in the plan. A participant's matching account will become 100% vested
without regard to the participant's years of service if the plan terminates,
or if the participant attains age 65 as an employee of the company, becomes
totally and permanently disabled, or dies while an employee. Participants
will also become 100% vested if the participant has completed 10 or more
years of service and attains age 55 as an employee. The portion of a
participant's matching account not vested will be forfeited when the
participant's employment terminates. As of the end of each year, forfeitures
and the earnings of such forfeitures not used to restore the matching
accounts of former participants rehired during the year will be credited
against the amount of matching contributions for the following year.
On April 20, 1992, the employer sold its Packaging Operations, whose
employees were eligible to participate in the plan, to Tetra Pak Inc.
Participating employees of the Packaging Operations had the option of rolling
over their account balances in the plan to a plan administered by Tetra Pak
Inc., or remaining in the plan. Those participants remaining in the plan
are not allowed to make contributions to the plan after April 20, 1992.
Participants should refer to the plan prospectus for a more complete
description of the plan's provisions.
Note 3. Federal Income Taxes
- - -----------------------------
The Commissioner of Internal Revenue has ruled that the plan, effective
July 1, 1987, meets the requirements of a plan qualified under Section 401(a)
of the Internal Revenue Code (the "Code"), including a cash or deferred
arrangement qualified under Section 401(k) of the Code.
-6-
<PAGE>
Schedule I
----------
POTLATCH CORPORATION SAVINGS PLAN FOR HOURLY EMPLOYEES OF THE
PULP AND PAPERBOARD AND CONSUMER PRODUCTS DIVISIONS,
LEWISTON, IDAHO
Item 30a - Schedule of Assets Held for Investment Purposes
At December 31, 1993
<TABLE>
<CAPTION>
Party-In- Current
Interest Issue Description Cost<1> Value
- - --------- ----- ----------- ---- -------
<S> <C> <C> <C> <C>
Putnam Funds Putnam Fiduciary Trust
Company GIC Fund $5,634,364 $5,634,364
Putnam Funds George Putnam Fund of
Boston 309,297 305,441
Putnam Funds Putnam Convertible Income
Growth Trust 2,460,667 2,624,299
Putnam Funds The Putnam Fund for
Growth and Income 649,045 652,395
Putnam Funds The Putnam Voyager Fund 1,339,186 1,451,683
* Potlatch Corporation Common Stock 6,194,019 7,647,862
<FN>
<1> Effective December 1, 1992, Putnam Fiduciary Trust Company became
trustee of the plan's assets. Prior to that date, Wells Fargo Bank,
N.A. was trustee. With respect to the Putnam Convertible Income
Growth Trust shown above, cost for such fund represents fair market
value at date of transfer adjusted by subsequent activity.
</TABLE>
-7-
<PAGE>
Schedule II
-----------
POTLATCH CORPORATION SAVINGS PLAN FOR HOURLY EMPLOYEES OF THE
PULP AND PAPERBOARD AND CONSUMER PRODUCTS DIVISIONS,
LEWISTON, IDAHO
Item 30d - Schedule of Reportable Transactions
For the Year Ended December 31, 1993
The plan shares in five percent reportable transactions with the other Potlatch
Corporation hourly savings plans. Five percent reportable transactions for all
hourly plans as certified by Putnam Fiduciary Trust Company for the year ended
December 31, 1993 are detailed below.
<TABLE>
<CAPTION>
Number of Description Cost of Current Value at
Transactions of Assets Asset Date of Transaction Net Gain
- - ------------ ----------- ------- ------------------- --------
<S> <C> <C> <C> <C>
Putnam Fiduciary Trust
Company GIC Fund
----------------------
203 Purchases 5,788,409 Units $5,788,409 $5,788,409 $ -
230 Sales 3,227,195 Units 3,227,195 3,227,195 -
George Putnam Fund
of Boston
------------------
118 Purchases 67,560 Shares 949,578 949,578 -
60 Sales 3,479 Shares 48,772 49,600 828
Putnam Convertible
Income Growth Fund, Inc.
------------------------
138 Purchases 107,562 Shares 2,095,190 2,095,190 -
109 Sales 38,441 Shares 697,591 746,213 48,622
The Putnam Fund for
Growth and Income
-------------------
145 Purchases 125,097 Shares 1,696,868 1,696,868 -
67 Sales 6,211 Shares 82,986 85,445 2,459
The Putnam
Voyager Fund
------------
170 Purchases 340,732 Shares 3,743,310 3,743,310 -
91 Sales 53,154 Shares 555,211 567,995 12,784
Potlatch Common Stock
---------------------
161 Purchases 134,583 Shares 6,082,249 6,082,249 -
232 Sales 50,611 Shares 1,881,461 2,330,792 449,331
</TABLE>
-8-
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
administrator of the plan has duly caused this annual report to be signed by
the undersigned thereunto duly authorized:
Potlatch Corporation Savings Plan
---------------------------------
for Hourly Employees of the Pulp and
------------------------------------
Paperboard and Consumer Products
--------------------------------
Divisions, Lewiston, Idaho
--------------------------
By Terry L. Carter
--------------------------------
Terry L. Carter, Controller
Potlatch Corporation
Date: June 24, 1994
-9-
<PAGE>
POTLATCH CORPORATION SAVINGS PLAN FOR HOURLY EMPLOYEES OF THE
PULP AND PAPERBOARD AND CONSUMER PRODUCTS DIVISIONS,
LEWISTON, IDAHO
Exhibit Index
-------------
Exhibit
- - -------
(23) Consent of Independent Auditors.
-10-
Consent of Independent Auditors
-------------------------------
Potlatch Corporation, Plan Administrator
Potlatch Corporation Savings Plan for Hourly
Employees of the Pulp and Paperboard and
Consumer Products Divisions, Lewiston, Idaho:
We consent to incorporation by reference in the Registration
Statement (No. 33-12809) on Form S-8 of our report dated April 8,
1994 relating to the statement of financial condition of Potlatch
Corporation Savings Plan for Hourly Employees of the Pulp and
Paperboard and Consumer Products Divisions, Lewiston, Idaho as of
December 31, 1993 and 1992 and the related statements of income and
changes in plan equity for the years then ended which report
appears in the December 31, 1993 annual report on Form 11-K of
Potlatch Corporation Savings Plan for Hourly Employees of the Pulp
and Paperboard and Consumer Products Divisions, Lewiston, Idaho.
KPMG PEAT MARWICK
June 24, 1994
Exhibit (23)
