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 Northwest Paper Division
Potlatch Corporation
One Maritime Plaza, San Francisco, California 94111
<PAGE>
POTLATCH CORPORATION SAVINGS PLAN FOR HOURLY EMPLOYEES
OF THE NORTHWEST PAPER DIVISION
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 Northwest Paper Division:
We have audited the statements of financial condition of Potlatch Corporation
Savings Plan for Hourly Employees of the Northwest Paper Division 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 Northwest Paper Division 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 NORTHWEST PAPER DIVISION
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:
Cash and equivalents $ - $ 78
Accounts receivable
Participating employees 2,545 1,107
Putnam Fiduciary Trust Company
GIC Fund 8,423,489 7,403,373 Fund equity $ 8,426,034 $ 7,404,558
----------- ----------- ----------- -----------
8,426,034 7,404,558 8,426,034 7,404,558
----------- ----------- ----------- -----------
George Putnam Fund: George Putnam Fund:
Accounts receivable
Participating employees 107 390
George Putnam Fund of Boston 366,050 16,813 Fund equity 366,157 17,203
----------- ----------- ----------- -----------
366,157 17,203 366,157 17,203
----------- ----------- ----------- -----------
Convertible Fund: Convertible Fund:
Accounts receivable
Participating employees 272 352
Putnam Convertible Income-
Growth Fund 5,109,442 4,026,629 Fund equity 5,109,714 4,026,981
----------- ----------- ----------- -----------
5,109,714 4,026,981 5,109,714 4,026,981
----------- ----------- ----------- -----------
Growth and Income Fund: Growth and Income Fund:
Accounts receivable
Participating employees 363 198
Putnam Fund for Growth and Income 664,788 32,998 Fund equity 665,151 33,196
----------- ----------- ----------- -----------
665,151 33,196 665,151 33,196
----------- ----------- ----------- -----------
Voyager Fund: Voyager Fund:
Accounts receivable
Participating employees 540 842
Putnam Voyager Fund 1,318,099 62,111 Fund equity 1,318,639 62,953
----------- ----------- ----------- -----------
1,318,639 62,953 1,318,639 62,953
----------- ----------- ----------- -----------
Stock Fund: Stock Fund:
Cash and equivalents 864 1,861 Forfeitures 139 1,176
Accounts receivable
Participating employees 537 974
Potlatch Corporation common stock,
209,925 shares (175,524 shares
in 1992) 9,892,712 8,074,101 Fund equity 9,893,974 8,075,760
----------- ----------- ----------- -----------
9,894,113 8,076,936 9,894,113 8,076,936
----------- ----------- ----------- -----------
$25,779,808 $19,621,827 $25,779,808 $19,621,827
=========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements.
</TABLE>
-2-
<PAGE>
POTLATCH CORPORATION SAVINGS PLAN FOR HOURLY
EMPLOYEES OF THE NORTHWEST PAPER DIVISION
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 $ 527,740 $ - $ - $ - $ - $ 40 $ 527,780
Dividend and other income - 20,214 393,902 38,036 46,207 292,129 790,488
---------- -------- ---------- -------- ---------- ---------- -----------
527,740 20,214 393,902 38,036 46,207 292,169 1,318,268
---------- -------- ---------- -------- ---------- ---------- -----------
Market value appreciation of assets - - 312,984 3,913 116,211 270,470 703,578
---------- -------- ---------- -------- ---------- ---------- -----------
Contributions (Note 2):
Employee 1,193,394 239,426 452,215 452,136 825,291 1,193,934 4,356,396
Employer - - - - - 736,535 736,535
---------- -------- ---------- -------- ---------- ---------- -----------
1,193,394 239,426 452,215 452,136 825,291 1,930,469 5,092,931
---------- -------- ---------- -------- ---------- ---------- -----------
Transfers from other funds 539,410 107,542 160,159 173,073 399,928 170,553 1,550,665
---------- -------- ---------- -------- ---------- ---------- -----------
Total increases 2,260,544 367,182 1,319,260 667,158 1,387,637 2,663,661 8,665,442
---------- -------- ---------- -------- ---------- ---------- -----------
Less distributions, forfeitures and
transfers to other accounts:
Distributions to participating
employees:
Cash 562,229 1,712 94,272 6,216 4,866 266,379 935,674
Market value of shares
distributed in settlement
of employees' accounts - - - - - 15,066 15,066
Forfeitures and other adjustments
to employer contributions - - - - - 868 868
Transfers to other funds 676,839 12,365 142,255 28,987 127,085 563,134 1,550,665
---------- -------- ---------- -------- ---------- ---------- -----------
1,239,068 14,077 236,527 35,203 131,951 845,447 2,502,273
---------- -------- ---------- -------- ---------- ---------- -----------
Market value depreciation of assets - 4,151 - - - - 4,151
---------- -------- ---------- -------- ---------- ---------- -----------
Total decreases 1,239,068 18,228 236,527 35,203 131,951 845,447 2,506,424
---------- -------- ---------- -------- ---------- ---------- -----------
Net increase in equity 1,021,476 348,954 1,082,733 631,955 1,255,686 1,818,214 6,159,018
Equity at beginning of period 7,404,558 17,203 4,026,981 33,196 62,953 8,075,760 19,620,651
---------- -------- ---------- -------- ---------- ---------- -----------
Equity at end of period $8,426,034 $366,157 $5,109,714 $665,151 $1,318,639 $9,893,974 $25,779,669
========== ======== ========== ======== ========== ========== ===========
The accompanying notes are an integral part of these financial statements.
</TABLE>
-3-
<PAGE>
POTLATCH CORPORATION SAVINGS PLAN FOR HOURLY
EMPLOYEES OF THE NORTHWEST PAPER DIVISION
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 $ 435,498 $ - $ 369 $ - $ - $ 2,157 $ 438,024
Dividend and other income - - 192,219 - 1,717 223,035 416,971
---------- ------- ---------- ------- ------- ---------- -----------
435,498 - 192,588 - 1,717 225,192 854,995
---------- ------- ---------- ------- ------- ---------- -----------
Market value appreciation of assets 31 45 448,856 330 - 1,114,704 1,563,966
---------- ------- ---------- ------- ------- ---------- -----------
Contributions (Note 2):
Employee 1,791,988 17,158 801,333 32,866 61,668 1,199,194 3,904,207
Employer - - - - - 699,496 699,496
---------- ------- ---------- ------- ------- ---------- -----------
1,791,988 17,158 801,333 32,866 61,668 1,898,690 4,603,703
---------- ------- ---------- ------- ------- ---------- -----------
Transfers from other funds 375,600 - 83,407 - - 181,133 640,140
---------- ------- ---------- ------- ------- ---------- -----------
Total increases 2,603,117 17,203 1,526,184 33,196 63,385 3,419,719 7,662,804
---------- ------- ---------- ------- ------- ---------- -----------
Less distributions, forfeitures and
transfers to other accounts:
Distributions to participating
employees:
Cash 236,883 - 102,815 - - 176,413 516,111
Market value of shares
distributed in settlement
of employees' accounts - - - - - 7,476 7,476
Forfeitures and other adjustments
to employer contributions - - - - - 960 960
Transfers to other funds 193,568 - 113,590 - - 332,982 640,140
---------- ------- ---------- ------- ------- ---------- -----------
430,451 - 216,405 - - 517,831 1,164,687
---------- ------- ---------- ------- ------- ---------- -----------
Market value depreciation of assets - - - - 432 - 432
---------- ------- ---------- ------- ------- ---------- -----------
Total decreases 430,451 - 216,405 - 432 517,831 1,165,119
---------- ------- ---------- ------- ------- ---------- -----------
Net increase in equity 2,172,666 17,203 1,309,779 33,196 62,953 2,901,888 6,497,685
Equity at beginning of period 5,231,892 - 2,717,202 - - 5,173,872 13,122,966
---------- ------- ---------- ------- ------- ---------- -----------
Equity at end of period $7,404,558 $17,203 $4,026,981 $33,196 $62,953 $8,075,760 $19,620,651
========== ======= ========== ======= ======= ========== ===========
The accompanying notes are an integral part of these financial statements.
</TABLE>
-4-
<PAGE>
POTLATCH CORPORATION SAVINGS PLAN FOR HOURLY EMPLOYEES
OF THE NORTHWEST PAPER DIVISION
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. For this purpose, years of service are determined by excluding
any period prior to July 1, 1987. 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, dies while an
employee, or completes ten 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.
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
January 1, 1988, 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 NORTHWEST PAPER DIVISION
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 $8,423,489 $8,423,489
Putnam Funds George Putnam Fund of
Boston 370,672 366,050
Putnam Funds Putnam Convertible Income
Growth Trust 4,790,855 5,109,442
Putnam Funds The Putnam Fund for Growth
and Income 661,374 664,788
Putnam Funds The Putnam Voyager Fund 1,215,954 1,318,099
* Potlatch Corporation Common Stock 8,012,128 9,892,712
<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 NORTHWEST PAPER DIVISION
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
---------------------------
Northwest Paper Division
------------------------
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 NORTHWEST PAPER DIVISION
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 Northwest Paper Division:
We consent to incorporation by reference in the Registration
Statement (No. 33-25352) 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 Northwest
Paper Division 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 Northwest Paper Division.
KPMG PEAT MARWICK
June 24, 1994
Exhibit (23)
