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FORM 11-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
________________
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended: December 31, 1995
------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from to
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Commission file number 0-19725
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A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
Cumberland-Swan, Inc. Retirement Income Savings Plan
One Swan Drive
Smyrna, Tennessee 37167
B. Name of the issuer of the securities held pursuant to the plan and
the address of its principal executive office:
Perrigo Company
117 Water Street
Allegan, MI 49010
SIGNATURES
The Plan. 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.
Cumberland-Swan, Inc. Retirement Income Savings Plan
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(Name of Plan)
Date: June 19, 1996 /s/Steven M. Neil
- --------------------- -----------------------------------------------------
Steven M. Neil
Vice President - Finance, Treasurer and
Chief Financial Officer
Perrigo Company
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CUMBERLAND-SWAN, INC.
RETIREMENT INCOME SAVINGS PLAN
FINANCIAL STATEMENTS AND SCHEDULES
YEARS ENDED DECEMBER 31, 1995 AND 1994
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CUMBERLAND-SWAN, INC.
RETIREMENT INCOME SAVINGS PLAN
CONTENTS
INDEPENDENT AUDITORS' REPORT 3
FINANCIAL STATEMENTS
Statements of Net Assets Available for Benefits -
December 31, 1995 and 1994 4
Statements of Changes in Net Assets Available for
Benefits - Years Ended December 31, 1995 and 1994 5-6
Notes to Financial Statements 7-10
SUPPLEMENTAL SCHEDULES
Assets Held for Investment Purposes - December 31, 1995 11
Reportable Transactions - Year Ended December 31, 1995 12
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[BDO SEIDMAN LETTERHEAD]
INDEPENDENT AUDITORS' REPORT
Administrator of Cumberland-Swan, Inc.
Retirement Income Savings Plan
Smyrna, Tennessee
We have audited the accompanying statements of net assets available for
benefits of Cumberland-Swan, Inc. Retirement Income Savings Plan as of
December 31, 1995 and 1994, 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 administrator. 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
Cumberland-Swan, Inc. Retirement Income Savings Plan as of December 31,
1995 and 1994, and the changes in 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 financial
statements taken as a whole. The 1995 supplemental schedules of assets
held for investment purposes and reportable transactions are presented for
the purpose of additional analysis and are not a required part of the basic
financial statements, but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure
under the Employee Retirement Income Security Act of 1974. The fund
information in the statements of net assets available for benefits and the
statements of changes in net assets available for benefits is presented for
purposes of additional analysis rather than to present net assets available
for benefits and changes in net assets available for benefits for each
fund. The supplemental schedules and fund information 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/ BDO Seidman, LLP
May 1, 1996
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CUMBERLAND-SWAN, INC.
RETIREMENT INCOME SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
Perrigo
Fixed Equity Balanced Stock
December 31, 1995 Fund Fund Fund Fund Total
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Cash and equivalents $ 51,050 $ 40,164 $ 70,005 $ 4,000 $ 165,219
Investments, at fair value (Notes 2, 4 and 5):
Collective investment funds 5,114,596 2,346,013 717,460 - 8,178,069
Common stock of Perrigo Company - - - 318,238 318,238
Contributions receivable from employer 292,419 127,684 53,090 31,068 504,261
Contributions receivable from employee 511 (373) 71 238 447
Accrued interest receivable 480 249 350 52 1,131
- ------------------------------------------------------------------------------------------------------------------------
Total assets 5,459,056 2,513,737 840,976 353,596 9,167,365
Transfers in progress (91,700) 79,344 16,588 (4,232) -
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $ 5,367,356 $ 2,593,081 $ 857,564 $ 349,364 $ 9,167,365
- ------------------------------------------------------------------------------------------------------------------------
December 31, 1994 Fixed Equity Balanced Perrigo Total
Fund Fund Fund Stock
Fund
- ------------------------------------------------------------------------------------------------------------------------
ASSETS
Cash and equivalents $ 282,544 $ 96,928 $ 40,775 $ 64,647 $ 484,894
Investments, at fair value
(Notes 2, 4 and 5):
Collective investment funds 4,304,788 1,962,659 459,662 - 6,727,109
Common stock of Perrigo Company - - - 224,963 224,963
Contributions receivable from employer 301,882 137,133 38,252 47,947 525,214
Accrued interest receivable 1,258 275 233 223 1,989
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $ 4,890,472 $ 2,196,995 $ 538,922 $ 337,780 $ 7,964,169
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</TABLE>
See accompanying notes to financial statements.
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CUMBERLAND-SWAN, INC.
RETIREMENT INCOME SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
Perrigo
Fixed Equity Balanced Stock
Year ended December 31, 1995 Fund Fund Fund Fund Total
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ADDITIONS
Employer contributions $ 447,872 $ 207,739 $ 86,760 $ 55,826 $ 798,197
Employee contributions 529,776 315,971 139,049 86,626 1,071,422
Interest 15,595 4,858 4,006 1,932 26,391
Net gain from collective funds
(Note 4) 310,536 585,035 114,982 - 1,010,553
Net loss from Perrigo Company
common stock (Note 4) - - - (12,790) (12,790)
- ------------------------------------------------------------------------------------------------------------------------
Total additions 1,303,779 1,113,603 344,797 131,594 2,893,773
Distributions to participants (770,379) (683,603) (173,957) (62,638) (1,690,577)
- ------------------------------------------------------------------------------------------------------------------------
Net increase 533,400 430,000 170,840 68,956 1,203,196
INTERFUND TRANSFERS (56,516) (33,914) 147,802 (57,372) -
NET ASSETS AVAILABLE FOR BENEFITS,
beginning of year 4,890,472 2,196,995 538,922 337,780 7,964,169
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS
end of year $ 5,367,356 $ 2,593,081 $ 857,564 $ 349,364 $ 9,167,365
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
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CUMBERLAND-SWAN, INC.
RETIREMENT INCOME SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------
Perrigo
Fixed Equity Balanced Stock
Year ended December 31, 1994 Fund Fund Fund Fund Total
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ADDITIONS
Employer contributions $ 451,226 $ 212,267 $ 77,238 $ 71,521 $ 812,252
Employee contributions 447,373 288,652 107,413 100,522 943,960
Interest 7,954 3,417 1,860 1,268 14,499
Net gain from collective funds
(Note 4) 238,300 (138,477) (5,301) - 94,522
Net loss from Perrigo Company
common stock (Note 4) - - - (244,505) (244,505)
- ------------------------------------------------------------------------------------------------------------------------
Total additions 1,144,853 365,859 181,210 (71,194) 1,620,728
Distributions to participants (274,710) (115,923) (21,043) (20,163) (431,839)
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 870,143 249,936 160,167 (91,357) 1,188,889
INTERFUND TRANSFERS 45,984 (183,300) 31,335 105,981 -
NET ASSETS AVAILABLE FOR BENEFITS,
beginning of year 3,974,345 2,130,359 347,420 323,156 6,775,280
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS,
end of year $ 4,890,472 $ 2,196,995 $ 538,922 $ 337,780 $ 7,964,169
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
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CUMBERLAND-SWAN,INC.
RETIREMENT INCOME SAVINGS PLAN
Notes to Financial Statements
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1. DESCRIPTION OF PLAN The following brief description of the
Cumberland-Swan, Inc. Retirement Income Savings
Plan (Plan) is provided for general information
purposes only. Participants should refer to the
Plan document for more complete information.
GENERAL
The Plan is a defined contribution profit-sharing
plan, funded primarily by discretionary
participant and employer contributions. The Plan
covers substantially all qualified employees of
Perrigo Company of Tennessee (Employer) and
Cumberland Freight Lines, Inc. It is subject to
the provisions of the Employee Retirement Income
Security Act of 1974. The purpose of the Plan is
to provide the benefits of a qualified employee
retirement and savings plan to participants and
their beneficiaries. All employees are eligible
to participate in the Plan after reaching age 21
and completing three months of service. The Plan
is administered by an Administrative Committee
(Committee). Administrative expenses were paid by
the Employer for the years ended December 31, 1995
and 1994.
CONTRIBUTIONS
Employer contribution and supplemental
contribution accounts are maintained for
each active participant. Contributions are
allocated annually to the respective accounts of
active participants as of each December 31
valuation date. Active participants are required
to have at least 1,000 hours of credited service
each Plan year, and must either be employed on the
valuation date or have terminated employment due
to death or retirement. At its discretion, each
Plan year, the Company may contribute an amount
for the Plan year which bears a specific
relationship to each participant's elective
deferral. This contribution, as well as a
discretionary supplemental profit-sharing
contribution, are determined by the Board of
Directors and allocated based on eligible
compensation (as defined in the Plan).
The Plan provides that each eligible
participant may make an elective contribution
by entering into a salary reduction agreement with
the Employer which designates a contribution of
any whole percentage up to 15% of compensation
during a Plan year.
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CUMBERLAND-SWAN, INC.
RETIREMENT INCOME SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
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The aggregate amount of employee and Employer
contributions permitted for each participant is
limited to the lesser of $30,000 or 25% of the
participant's total nondeferred compensation.
PARTICIPANT ACCOUNTS
Participants' Employer, supplemental and
elective employee contributions are increased or
decreased on a pro rata basis, based on certain
formulas provided by the Plan, to reflect
respective shares of earnings or losses on
investments, expenses or charges incurred and the
unrealized appreciation or depreciation in the
fair value of investments.
VESTING
Participants are 100% vested in their Employer
contribution accounts and employee elective
contribution accounts. Employer matching and
supplemental contribution accounts become 50%
vested after the completion of three years
credited service, 75% vested after four years and
100% vested after five years. A year of service
for vesting purposes is any Plan year in which an
employee completes at least 1,000 hours of service
commencing on the date the employee first performs
one hour of service for the Employer. Participant
accounts also become fully vested in the event of
termination of the Plan, termination of employment
due to death or disability or when an employee
reaches eligible retirement age. Normal
retirement age is 65.
BENEFIT DISTRIBUTIONS
Benefit distributions equal to vested benefits
are payable to participants or their beneficiaries
upon retirement, death, disability or termination
of employment, except in the case of vested
benefits equal to or greater than $3,500 payable
to terminated participants, in which case the
distribution shall not be made prior to normal
retirement without the participant's written
consent. Benefits shall begin to be paid no later
than April 1 following either the calendar year in
which a participant attains age 70-1/2 or, if the
participant is other than a
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CUMBERLAND-SWAN, INC.
RETIREMENT INCOME SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
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5% owner of the outstanding stock of the Employer,
the calendar year in which the participant
retires. The method of distribution shall be
determined by the Committee in accordance with the
provisions of the Plan.
WITHDRAWALS
A participant may elect to withdraw up to an
amount equal to the balance in the participant's
elective contribution account on the allocation
date coinciding with or immediately preceding the
date of withdrawal, provided the Committee
determines that: (1) the purpose of the withdrawal
is to meet immediate and heavy financial need of
the participant; (2) the amount of the withdrawal
does not exceed such financial need and (3) the
amount of the withdrawal is not reasonably
available from other resources of the participant.
FORFEITURES
Forfeitures, resulting from termination of
employment under circumstances which do not
entitle the participant to be fully vested in his
Employer matching and supplemental contribution
accounts, are applied to reduce the Employer
contribution for the Plan year in which they
occur.
2. SUMMARY OF The financial statements of the Plan have been
SIGNIFICANT prepared on the accrual basis of accounting.
ACCOUNTING Investments are stated at fair value, as reported
POLICIES by the trustee for collective investment funds,
and by market quote for common stock. The fair
value of money market and cash funds is considered
equal to cost. Gains or losses realized from the
disposition of investments are reported based on
sale proceeds compared with the original cost when
acquired.
3. TRUSTEE Under the terms of the trust agreement with
SunTrust Bank, the trustee manages the trust fund
on behalf of the Plan. Suntrust Bank has
discretionary authority over the investments for
the trust fund except for the investments in the
common stock of Perrigo Company.
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CUMBERLAND-SWAN, INC.
RETIREMENT INCOME SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
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4. NET APPRECIATION The plan's investments (including investments
(DEPRECIATION) OF bought, sold and held during the year) appreciated
INVESTMENTS (depreciated) in fair value as follows:
<TABLE>
<CAPTION>
Year ended December 31, 1995 1994
---------------------------------------------------------------------------------------
<S> <C> <C>
SunTrust Employee Benefit Stable
Asset Fund $ 314,053 $ 245,020
SunTrust Corporate Equity Fund 660,163 (154,264)
SunTrust Retirement Intermediate
Bond Fund - 2,254
SunTrust Retirement Fixed Income Fund 21,443 1,512
SunTrust Retirement Short-Term Fund 14,894 -
Perrigo Company common stock (12,790) (244,505)
---------------------------------------------------------------------------------------
$ 997,763 $ (149,983)
=======================================================================================
</TABLE>
5. INVESTMENTS
Investments that represent 5% or more of total
Plan assets are as follows:
<TABLE>
<CAPTION>
December 31, 1995 1994
---------------------------------------------------------------------------------------
<S> <C> <C>
SunTrust Employee Benefit Stable
Asset Fund $ 5,185,381 $ 435,315
SunTrust Corporate Equity Fund 2,693,388 2,180,214
SunTrust Retirement Reserve Fund - 475,350
=======================================================================================
</TABLE>
6. INCOME TAX STATUS The Plan obtained its latest determination
letter on March 1992, in which the Internal Revenue
Service stated that the Plan, as then designed, was
in compliance with the applicable requirements of
the Internal Revenue Code. The Plan has been
amended since receiving the determination letter.
However, the Plan administrator and the Plan's tax
counsel believe that the Plan is currently designed
and being operated in compliance with the
applicable requirements of the Internal Revenue
Code.
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CUMBERLAND-SWAN, INC.
RETIREMENT INCOME SAVINGS PLAN
LINE 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
- -------------------------------------------------------------------------------
EIN: 62-0634170
Plan Number: 002
<TABLE>
<CAPTION>
December 31, 1995
- --------------------------------------------------------------------------------------------------
Current
Description of investment Shares Cost value
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FIXED FUND
SunTrust Employee Benefit Stable Asset Fund 235,262 $ 3,914,741 $ 5,114,596
EQUITY FUND
SunTrust Employee Benefit Stable Asset Fund 346 7,491 7,522
SunTrust Corporate Equity Fund 18,687 1,503,831 2,338,491
BALANCED FUND
SunTrust Employee Benefit Stable Asset Fund 2,910 57,428 63,263
SunTrust Retirement Fixed Income Fund 2,343 131,132 152,445
SunTrust Retirement Bond Fund 2,315 131,050 146,854
SunTrust Corporate Equity Fund 2,836 282,350 354,898
PERRIGO STOCK FUND
Common stock of Perrigo Company 26,799 463,156 318,238
- --------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS $ 6,491,179 $ 8,496,307
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SUNTRUST RETIREMENT RESERVE FUND
(included in cash and equivalents) 181,992 $ 181,992 $ 181,992
- --------------------------------------------------------------------------------------------------
</TABLE>
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CUMBERLAND-SWAN, INC.
RETIREMENT INCOME SAVINGS PLAN
LINE 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
================================================================================
EIN: 62-0634170
Plan Number: 002
<TABLE>
<CAPTION>
Year ended December 31, 1995
- ------------------------------------------------------------------------------------------------------------
Purchases Sales
------------------------- --------------------------------------------------------
Description of asset Shares Purchase Shares Selling Cost of Realized
purchased price (a) sold price (a) asset (a) gain
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SunTrust Retirement
Reserve Fund 3,745,662 $ 3,745,662 4,039,020 $ 4,039,020 $ 4,039,020 $ -
SunTrust Employee
Benefit Stable
Asset Fund 38,832 813,385 13,704 295,214 228,478 66,736
SunTrust Corporate
Equity Fund 4,274 472,879 5,650 619,836 435,276 184,560
- ------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Fair value at date of transaction.
12