<PAGE> 1
FORM 11-K
(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, 1994
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from ___ to ___.
Commission file number #33-4333
RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN B
Ryder System, Inc.
3600 N.W. 82 Avenue
Miami, Florida 33166
<PAGE> 2
Independent Auditors' Report
The Participants and Administrator
Ryder System, Inc. Employee Savings Plan B:
We have audited the accompanying statements of financial position with fund
information of Ryder System, Inc. Employee Savings Plan B as of December 31,
1994 and 1993, and the related statements of income and changes in plan equity
with fund information for each of the years in the two-year period ended
December 31, 1994. 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, 1994 and 1993 and the changes in net assets available for benefits
for each of the years in the two-year period ended December 31, 1994, 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
Investments and Schedule of 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 financial position with fund information and statements of
income and changes in plan equity with fund information are presented for
purposes of additional analysis rather than to present the financial position
and changes in plan equity 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/ KPMG Peat Marwick LLP
Miami, Florida
June 12, 1995
<PAGE> 3
RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN B
STATEMENT OF FINANCIAL POSITION WITH FUND INFORMATION
DECEMBER 31, 1994
<TABLE>
<CAPTION>
Assets Fund A Fund B Fund C Fund D Fund E Fund F
----------- ---------- --------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investments:
Fixed income investments,
at cost $ 196,711 118,163 22,191 46,058 35,488 73,810
Group annuity insurance
contracts, at contract value 50,313,811
Pooled investment funds
(cost, $63,472,127) 2,248,172 15,264,599 33,139,293 10,884,049
Securities of
participating employer
(cost, $22,643,220) 18,581,777
Other Securities
(cost, $2,430,211)
Participant loans receivable
----------- ---------- --------- ---------- ---------- ----------
Total investments 18,778,488 50,431,974 2,270,363 15,310,657 33,174,781 10,957,859
Dividends and interest
receivable 368 298,653 130 138 67 160
Contributions receivable
and other 490,581 1,166,449 112,811 448,795 1,023,972 488,542
Interfund transfers
receivable (payable) 619,917 152,408 37,926 (164,803) (194,645) (111,954)
----------- ---------- --------- ---------- ---------- ----------
Total assets $19,889,354 52,049,484 2,421,230 15,594,787 34,004,175 11,334,607
=========== ========== ========= ========== ========== ==========
Liabilities and Plan Equity
Other liabilities $ 706,459 571,806 61,425 3,646 513,717 18,976
Plan equity 19,182,895 51,477,678 2,359,805 15,591,141 33,490,458 11,315,631
----------- ---------- --------- ---------- ---------- ----------
Total liabilities
and plan equity $19,889,354 52,049,484 2,421,230 15,594,787 34,004,175 11,334,607
=========== ========== ========= ========== ========== ==========
Number of units 276,586 5,042,557 115,204 518,324 833,001 191,008
=========== ========== ========= ========== ========== ==========
Plan equity per unit $ 69.36 10.21 20.48 30.08 40.20 59.24
=========== ========== ========= ========== ========== ==========
<CAPTION>
Assets Fund G Fund H Loan Fund Total
---------- --------- --------- -----------
<S> <C> <C> <C> <C>
Investments:
Fixed income investments,
at cost 127,478 1,117 621,016
Group annuity insurance
contracts, at contract value 50,313,811
Pooled investment funds
(cost, $63,472,127) 10,025,537 71,561,650
Securities of
participating employer
(cost, $22,643,220) 18,581,777
Other Securities
(cost, $2,430,211) 1,069,759 1,069,759
Participant loans receivable 7,931,900 7,931,900
---------- --------- --------- -----------
Total investments 10,153,015 1,070,876 7,931,900 150,079,913
Dividends and interest
receivable 192 16,739 115,040 431,487
Contributions receivable
and other 519,619 6,995 380,243 4,638,007
Interfund transfers
receivable (payable) (99,863) (23,391) (215,595) 0
---------- --------- --------- -----------
Total assets 10,572,963 1,071,219 8,211,588 155,149,407
========== ========= ========= ===========
Liabilities and Plan Equity
Other liabilities 75,204 1,308 1,952,541
Plan equity 10,497,759 1,069,911 8,211,588 153,196,866
---------- --------- --------- -----------
Total liabilities
and plan equity 10,572,963 1,071,219 8,211,588 155,149,407
========== ========= ========= ===========
Number of units 219,390 20,455
========== =========
Plan equity per unit 47.85 52.31
========== =========
</TABLE>
See accompanying note to financial statements.
<PAGE> 4
RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN B
STATEMENT OF FINANCIAL POSITION WITH FUND INFORMATION
DECEMBER 31, 1993
<TABLE>
<CAPTION>
Assets Fund A Fund B Fund C Fund D Fund E Fund F
----------- ---------- --------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investments:
Fixed income investments,
at cost $ 161,607 157,464 74,837 85,942 60,150
Group annuity insurance
contracts, at contract value 46,532,755
Pooled investment funds
(cost, $51,037,453) 2,136,004 14,228,186 30,178,166 8,886,848
Securities of
participating employer
(cost, $18,671,027) 18,152,666
Other Securities
(cost, $2,733,724)
Participant loans receivable
----------- ---------- --------- ---------- ---------- ----------
Total investments 18,314,273 46,690,219 2,136,004 14,303,023 30,264,108 8,946,998
Dividends and interest
receivable 387 807,825 6,979 60,317 1,278,981 1,135,452
Contributions receivable
and other 79,520 302,177 21,620 70,106 150,419 43,479
Transfers from other plan 42,033 186,473 42,341 272,502 (109,692) (45,788)
Interfund transfers
receivable (payable) 34,518 (380,041) (59,301) (3,837) 38,226 21,664
----------- ---------- --------- ---------- ---------- ----------
Total assets $18,470,731 47,606,653 2,147,643 14,702,111 31,622,042 10,101,805
=========== ========== ========= ========== ========== ==========
Liabilities and Plan Equity
Other liabilities $ 271,238 1,494,691 42,151 191,065 1,589,418 1,241,342
Plan equity 18,199,493 46,111,962 2,105,492 14,511,046 30,032,624 8,860,463
----------- ---------- --------- ---------- ---------- ---------
Total liabilities
and plan equity $18,470,731 47,606,653 2,147,643 14,702,111 31,622,042 10,101,805
=========== ========== ========= ========== ========== ==========
Number of units 7,963,512 29,907,092 1,162,904 4,157,225 5,885,285 5,031,216
=========== ========== ========= ========== ========== ==========
Plan equity per unit $ 2.29 1.54 1.81 3.49 5.10 1.76
=========== ========== ========= ========== ========== ==========
<CAPTION>
Assets Fund G Fund H Loan Fund Total
--------- --------- --------- -----------
<S> <C> <C> <C> <C>
Investments:
Fixed income investments,
at cost 26,100 566,100
Group annuity insurance
contracts, at contract value 46,532,755
Pooled investment funds
(cost, $51,037,453) 7,135,855 62,565,059
Securities of
participating employer
(cost, $18,671,027) 18,152,666
Other Securities
(cost, $2,733,724) 2,593,783 2,593,783
Participant loans receivable 7,279,566 7,279,566
--------- --------- --------- -----------
Total investments 7,161,955 2,593,783 7,279,566 137,689,929
Dividends and interest
receivable 12,470 3,302,411
Contributions receivable
and other 31,565 37,914 736,800
Transfers from other plan (109,898) 277,971
Interfund transfers
receivable (payable) 205,659 (42,209) 185,321 0
--------- --------- --------- -----------
Total assets 7,301,751 2,551,574 7,502,801 142,007,111
========= ========= ========= ===========
Liabilities and Plan Equity
Other liabilities 153,820 35,631 29,999 5,049,355
Plan equity 7,147,931 2,515,943 7,472,802 136,957,756
--------- --------- --------- -----------
Total liabilities
and plan equity 7,301,751 2,551,574 7,502,801 142,007,111
========= ========= ========= ===========
Number of units 4,251,264 1,280,825
========= =========
Plan equity per unit 1.68 1.96
========= =========
</TABLE>
See accompanying note to financial statements.
<PAGE> 5
RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN B
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
Fund A Fund B Fund C Fund D Fund E Fund F
----------- ---------- --------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net investment income:
Dividends $ 460,922 1,543,107 1,408,251 720,738
Interest 13,287 3,407,918 80,738 4,740 7,540 4,717
----------- ---------- --------- ---------- ---------- ----------
Net investment income 474,209 3,407,918 80,738 1,547,847 1,415,791 725,455
Realized gains 14,035 6,952 155,174 7,922
Net change in unrealized appreciation/
(depreciation) on investments (3,543,082) (954,368) (1,249,664) (183,923)
Contributions:
Employer contributions 205,995 521,882 55,627 194,034 441,567 170,936
Employee contributions 1,942,528 4,484,973 373,701 1,893,553 4,354,295 1,863,625
----------- ---------- --------- ---------- ---------- ----------
Total contributions 2,148,523 5,006,855 429,328 2,087,587 4,795,862 2,034,561
Participant loan repayments 484,978 1,281,105 112,997 387,657 973,470 369,492
Distributions and other (893,079) (1,910,026) (169,367) (367,340) (557,320) (452,187)
Transfer from (to) Plan A 1,088,554 (176,128) 17,065 (286,196) 35,467 38,180
Plan fees and expenses (31,244) (83,685) (4,885) (22,039) (40,689) (14,528)
Loans to participants (475,216) (1,521,645) (104,658) (407,977) (905,810) (307,356)
Interfund transfers 1,715,724 (638,678) (106,905) (912,028) (1,164,447) 237,552
----------- ---------- --------- ---------- ---------- ----------
Net changes in plan equity 983,402 5,365,716 254,313 1,080,095 3,457,834 2,455,168
Plan equity at beginning of
period 18,199,493 46,111,962 2,105,492 14,511,046 30,032,624 8,860,463
----------- ---------- --------- ---------- ---------- ----------
Plan equity at end of
period $19,182,895 51,477,678 2,359,805 15,591,141 33,490,458 11,315,631
=========== ========== ========= ========== ========== ==========
<CAPTION>
Fund G Fund H Loan Fund Total
---------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
Net investment income:
Dividends 1,082,644 6,060 5,221,722
Interest 3,273 4,181 435,436 3,961,830
---------- ---------- ---------- -----------
Net investment income 1,085,917 10,241 435,436 9,183,552
Realized gains 244 100,040 284,367
Net change in unrealized appreciation/
(depreciation) on investments (1,050,127) (1,220,511) (8,201,675)
Contributions:
Employer contributions 164,233 (278) 1,753,996
Employee contributions 1,978,315 16,890,990
---------- ---------- ---------- -----------
Total contributions 2,142,548 (278) 18,644,986
Participant loan repayments 343,523 1,101 (3,954,323) 0
Distributions and other (377,581) (52,743) (14,658) (4,794,301)
Transfer from (to) Plan A 411,225 (15,566) 227,174 1,339,775
Plan fees and expenses (13,570) (6,954) (217,594)
Loans to participants (280,103) (43,935) 4,046,700 0
Interfund transfers 1,087,752 (217,427) (1,543) 0
---------- ---------- ---------- -----------
Net changes in plan equity 3,349,828 (1,446,032) 738,786 16,239,110
Plan equity at beginning of
period 7,147,931 2,515,943 7,472,802 136,957,756
---------- ---------- ---------- -----------
Plan equity at end of
period 10,497,759 1,069,911 8,211,588 153,196,866
========== ========== ========== ===========
</TABLE>
See accompanying note to financial statements.
<PAGE> 6
RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN B
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1993
<TABLE>
<CAPTION>
Fund A Fund B Fund C Fund D Fund E Fund F
----------- ----------- --------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net investment income:
Dividends $ 461,120 1,309,263 1,161,789 966,582
Interest 4,066 4,102,694 87,650 3,462 6,508 4,603
----------- ----------- --------- ---------- ---------- ----------
Net investment income 465,186 4,102,694 87,650 1,312,725 1,168,297 971,185
Realized gains 806,698 70,447 1,109,774 615,749
Net change in unrealized appreciation/
(depreciation) on investments 1,374,522 412,264 3,015,777 343,876
Contributions:
Employer contributions 230,514 877,893 94,141 221,841 505,875 187,029
Employee contributions 1,829,759 7,140,217 550,594 2,061,728 4,614,359 1,780,814
----------- ----------- --------- ---------- ---------- ----------
Total contributions 2,060,273 8,018,110 644,735 2,283,569 5,120,234 1,967,843
Participant loan repayments 466,061 1,698,669 129,588 437,145 959,997 308,985
Distributions and other (762,260) (2,905,166) (154,904) (643,819) (1,259,366) (408,485)
Distribution to other plan (1,279,973) (13,098,988) (902,341) (1,654,146) (4,735,903) (4,167,222)
Plan fees and expenses (38,574) (84,828) (8,487) (26,823) (47,555) (18,356)
Loans to participants (641,183) (1,911,788) (199,888) (388,003) (1,101,295) (328,786)
Transfer from (to) Plan A 20,647,725 49,771,601 2,887,754 13,031,525 26,577,146 7,967,404
Equity Transfer to fund H (3,014,323)
Interfund transfers (1,884,659) 521,658 (378,615) (323,838) (774,482) 1,608,270
----------- ----------- --------- ---------- ---------- ----------
Net changes in plan equity 18,199,493 46,111,962 2,105,492 14,511,046 30,032,624 8,860,463
Plan equity at beginning of
period 0 0 0 0 0 0
----------- ----------- --------- ---------- ---------- ----------
Plan equity at end of
period $18,199,493 46,111,962 2,105,492 14,511,046 30,032,624 8,860,463
=========== =========== ========= ========== ========== ==========
<CAPTION>
Fund G Fund H Loan Fund Total
---------- --------- ---------- -----------
<S> <C> <C> <C> <C>
Net investment income:
Dividends 791,381 4,690,135
Interest 2,908 472,546 4,684,437
---------- --------- ---------- -----------
Net investment income 794,289 472,546 9,374,572
Realized gains 51,622 2,654,290
Net change in unrealized appreciation/
(depreciation) on investments 1,090,373 (139,941) 6,096,871
Contributions:
Employer contributions 131,122 2,248,415
Employee contributions 1,210,112 19,187,583
---------- --------- ---------- -----------
Total contributions 1,341,234 21,435,998
Participant loan repayments 248,464 (4,248,909) 0
Distributions and other (465,509) (39,317) 8,044 (6,630,782)
Distribution to other plan (2,590,927) (214,737) (1,782,944) (30,427,181)
Plan fees and expenses (14,191) (238,814)
Loans to participants (233,887) (2,663) 4,807,493 0
Transfer from (to) Plan A 5,656,267 (61,549) 8,214,929 134,692,802
Equity Transfer to fund H 3,014,323 0
Interfund transfers 1,270,196 (40,173) 1,643 0
---------- --------- ---------- -----------
Net changes in plan equity 7,147,931 2,515,943 7,472,802 136,957,756
Plan equity at beginning of
period 0 0 0 0
---------- --------- ---------- -----------
Plan equity at end of
period 7,147,931 2,515,943 7,472,802 136,957,756
========== ========= ========== ===========
</TABLE>
See accompanying note to financial statements.
<PAGE> 7
RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN B
NOTE TO FINANCIAL STATEMENTS
DECEMBER 31, 1994
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER MATTERS
A. BASIS OF ACCOUNTING
The financial statements of the Ryder System, Inc. Employee Savings Plan
B (the "Plan") are prepared on the accrual basis of accounting. Plan
assets, except for participant loan receivables and group annuity
insurance contracts which are valued at contract value, are stated at
market value (quoted market prices) as determined by the Plan's trustee.
Purchases and sales of securities are recorded on a trade date basis.
Cost is determined based on historical average cost.
B. THE PLAN
The following description of the Plan reflects all plan amendments
through December 31, 1994, and is provided for general purposes only. As
of January 1, 1993, the Ryder System, Inc. Employee Savings Plan B was
established for active salaried employees and active employees, whether
salaried or hourly, of the Aviation Services Division. Such employees
and their participating account balances were transfered from the Ryder
System, Inc. Employee Savings Plan A. Effective January 1, 1995, hourly
field employees of Ryder Dedicated Logistics, Inc. and hourly employees
of Ryder Driver Leasing, Inc. became eligible for this Plan. Any existing
account balances in the Ryder System, Inc. Employee Savings Plan A were
transferred to the Ryder System, Inc. Employee Savings Plan B.
Participants should refer to the Plan document for more complete
information. The Plan is a defined contribution plan and, as such, is
subject to some, but not all, of the provisions of the Employee
Retirement Income Security Act of 1974 ("ERISA"). It is excluded from
coverage under Title IV of ERISA, which generally provides for guaranty
and insurance of retirement benefits; and it is not subject to the
funding requirements of Title I of ERISA. The plan is, however, subject
to those provisions of Title I and II of ERISA which, among other things,
require that each participant be furnished with an annual financial
report and a comprehensive description of the participant's rights under
the Plan, set minimum standards of responsibility applicable to
fiduciaries of the Plan, and establish minimum standards for
participation and vesting.
Participation in the Plan is voluntary. However, to participate in the
Plan, an employee must meet certain eligibility requirements related to
employment date, age and service hours. In general, salaried employees of
the company and participating affiliates are eligible to participate in
the Plan, however, an employee who is in a unit of employees represented
by a collective bargaining agent is excluded from participation in the
Plan unless the unit has negotiated coverage under the Plan. In
<PAGE> 8
addition, employees eligible to participate under another company
sponsored qualified savings plan, will be excluded from participation in
the Plan.
The number of participants' accounts in each of the funds at December 31,
1994 is as follows:
<TABLE>
<S> <C> <C>
Fund A - 2,548
Fund B - 3,104
Fund C - 628
Fund D - 2,041
Fund E - 3,202
Fund F - 1,776
Fund G - 1,778
Fund H - 2,010
Loans - 1,351
</TABLE>
C. PLAN INVESTMENT FUNDS
The Plan's trustee, State Street Bank and Trust Company, maintains Plan
assets in separate investment funds. Participants may elect to
contribute to, or transfer among, any of the funds. Earnings are
allocated monthly based on units of investment. Effective April 17, 1995,
earnings are allocated daily.
Investment Fund A ("Fund A") - Fund A is invested in Ryder System, Inc.
common stock, which is purchased on a regular and continuous basis.
Dividends are automatically reinvested in the common stock.
Investment Fund B ("Fund B") - Fund B consists of funding accounts
established by contracts with various insurance companies. Participants'
accounts are credited with interest based on a pooling of the returns of
the various funding accounts. Funding accounts generally continue for a
period of two to five years after their inception. During 1994 and 1993,
the yield on open funding contracts ranged from 4.89% to 9.05% and 4.89%
to 9.3%, respectively.
Investment Fund C ("Fund C") - Fund C consists of a funding account
established with the Ryder System Federal Credit Union. Effective April
1, 1995, the assets of this fund will be merged into Fund B and this fund
will be discontinued as an Investment Fund under the Plan.
Investment Fund D ("Fund D") - Fund D may normally be invested in a
variety of common, preferred or capital stocks, but may include
investments in bonds or securities convertible into common or capital
stocks, similar types of equity investments and bonds. Since Plan
inception, this fund has been invested solely in shares of the Lord,
Abbett Affiliated Fund.
Investment Fund E ("Fund E") - Fund E may be invested primarily in common
or capital stocks, though it may invest in other types of securities,
including convertible bonds, convertible preferred stock, warrants,
preferred stock or debt securities.
<PAGE> 9
Since Plan inception, this fund has been invested solely in shares of the
Putnam Voyager Fund.
Investment Fund F ("Fund F") - Fund F may be invested in securities
issued by U.S. based companies that are selling below book value. Up to
50% of the fund's portfolio may consist of securities of companies
involved in prospective mergers, consolidations, liquidations and
reorganizations. The fund may also engage in covered call option writing.
The primary objective of the fund is capital appreciation and not
necessarily the attainment of a balanced investment program. Since Plan
inception, this fund has been invested solely in shares of the Mutual
Series Fund, Inc., Qualified Income Fund.
Investment Fund G ("Fund G") - Fund G may be invested in all types of
securities, including stocks and debt securities of companies and
governments of all nations. The fund's investment objective is long-term
capital growth. Since Plan inception, this fund has been invested solely
in shares of the Templeton World Fund. Effective April 1, 1995, assets in
this fund will be transferred to the Templeton Foreign Fund. All
investments in the Templeton World Fund will be discontinued.
Investment Fund H ("Fund H") - Fund H is invested in Aviall, Inc. Common
stock and is a frozen fund. Participants cannot contribute to nor
transfer into that fund. Participants can transfer assets from Fund H to
any other investment fund of the Plan. Monies remaining in that fund at
December 31, 1995 will be liquidated and reinvested in Fund A.
Effective April 1, 1995, three asset allocation funds will be added as
investment options in the Plan. Asset allocation funds are
professionally-managed combinations of investment vehicles designed to
achieve a specific investment goal. The three asset allocation funds will
be Life Solutions-Income & Growth, Life Solutions-Balanced Growth and
Life Solutions-Growth.
D. CONTRIBUTIONS
Participants may elect to contribute to the Plan by having their
compensation reduced by a minimum of 1% of compensation up to a maximum
of the lesser of a) 10% or 15% of compensation, depending on an
individual's annual salary level, b) $9,240, or c) such other amount as
shall be determined by the Company's Retirement Committee from time to
time. The Company matches 50% of the employee's annual contribution up to
$200 or $400 per person based on certain requirements. Some eligible
employees receive company contributions that include $400 of basic fully
vested contribution, plus 100% match to the first $300 of employee fully
vested contribution and 50% match to the next $400 or $800 of employee
contribution. Participants are fully vested in the earnings of their
individual contributions to the Plan and vest 25% per year in the Company
contributions and the earnings attributable to such contributions. Upon
participant's distribution, related, non-vested Company contributions are
forfeited and are used to offset future company contributions. Effective
April 1, 1995, the company matching contribution
<PAGE> 10
schedule for some employees is amended to provide a 50% match of employee
contributions to the greater of $1,200 or 3% of eligible compensation.
E. DISTRIBUTIONS
On termination of service, if a participant's account balance is greater
than $3,500, a participant's account is distributed to the participant in
the form of a single lump-sum payment upon receipt of participant's
consent. Terminated participants whose account balance is less than
$3,500 receive automatic distributions. The 1994 Plan Equity on the
Statement of Financial Position includes the following amounts allocated
to accounts of terminated persons who have not yet been paid.
<TABLE>
<CAPTION>
1994
----
<S> <C>
Fund A $ 49,221
Fund B 205,931
Fund C 34,788
Fund D 23,353
Fund E 63,623
Fund F 34,909
Fund G 25,947
Fund H 3,527
Loan Fund 36,088
--------
Total $477,387
========
</TABLE>
F. WITHDRAWALS
A participant may request a withdrawal of all or a portion of his
elective contribution account balance if he can demonstrate financial
hardship. The Plan Administrator must approve the request, and the amount
withdrawn cannot be subsequently repaid to the Plan. Such amounts will be
considered distributions to the participant for tax purposes.
G. DISTRIBUTIONS TO OTHER PLAN
On December 7, 1993, Ryder System, Inc. completed the spin-off of its
Aviation Division, Aviall, Inc. ("Aviall"). Under the terms of the
spin-off, the Company distributed to its holders of common stock one
share of Aviall common stock for each four shares of Ryder System, Inc.
common stock held. Participants in the Savings Plan who were invested in
the Ryder System, Inc. common stock fund on this date received the
equivalent of one share of Aviall common stock for each four shares of
Ryder System, Inc. common stock held. As a result of the spin-off a new
"Fund H" was created. The investment fund balances of Aviall employees in
the Plan at December 7, 1993 were transferred to a newly established plan
for employees of Aviall.
<PAGE> 11
H. PARTICIPANT LOANS
Plan participants are able to request loans against their Plan account
balances subject to certain limitations as to amount and repayment term.
Loans accrue interest at a rate which is comparable to those of most
major lending institutions and all principal and interest payments are
allocated to the Plan's investment funds based on the participant's
investment elections at the time of payment. Loans which are granted and
repaid in compliance with the Plan provisions will not be considered
distributions to the participant for tax purposes.
I. TERMINATION
While it has not expressed any intention to do so, the Company may amend
or terminate the Plan at any time. In the event of termination, Plan
assets are payable to each participant in a lump sum equal to the balance
in the participant's account.
J. FEDERAL INCOME TAX EFFECTS OF THE PLAN
The Plan qualifies as a profit sharing plan under Section 401(a) of the
Internal Revenue Code of 1986, as amended, (the "Code") and also
qualifies as a cash or deferred arrangement under Section 401(k) of the
Code and, therefore, is exempt from federal income taxes under Section
501(a) of the Code. A favorable tax determination letter was obtained on
August 21, 1986 for the Ryder System, Inc. Employee Savings Plan A. Since
the transfer of plan assets from the Ryder System, Inc. Employee Savings
Plan A to the Ryder System, Inc. Employee Savings Plan B on January 1,
1993, the company has not requested a tax determination letter for the
Ryder System, Inc. Employee Savings Plan B. However, management believes
the plan is a qualified plan within the meaning of Sections 401(a) and
501(a) of the Internal Revenue Code and, accordingly, is exempt from
Federal Income Tax.
Under a plan qualified pursuant to Sections 401(a) and (k) of the Code,
participants generally will not be taxed on contributions or matching
contributions, or earnings thereon, until such amounts are distributed to
participants or their beneficiaries under the Plan. The tax-deferred
contributions and matching contributions are deductible by the company
for tax purposes when those contributions are made, subject to certain
limitations set forth in Section 404 of the Code.
Participants or their beneficiaries will be taxed, at ordinary income tax
rates, on the amount they receive as a distribution from the Plan at the
time they receive the distribution. However, if the participant or
beneficiary receives a lump sum payment of the balance under the Plan in
a single taxable year, and the distribution is made by reason of death,
disability or termination of employment of the participant, or after the
participant has attained age 59 1/2, then certain special tax rules may
be applicable.
<PAGE> 12
K. PLAN FEES AND EXPENSES
Generally, Plan fees and expenses are paid by the Plan. At its
discretion, the Company may elect to pay some administrative and
marketing expenses.
L. NET REALIZED GAINS OR LOSSES
Net realized gains or losses on investments covering each of the last
two years are as follows:
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1994:
NET
AGGREGATE AGGREGATE REALIZED
PROCEEDS COST GAIN/(LOSS)
---------- --------- -----------
<S> <C> <C> <C>
Fund A $ 4,039,960 4,025,925 14,035
Fund D 2,618,082 2,611,130 6,952
Fund E 5,539,933 5,384,759 155,174
Fund F 2,543,826 2,535,904 7,922
Fund G 3,333,805 3,333,561 244
Fund H 742,829 642,789 100,040
----------- ---------- -------
$18,818,435 18,534,068 284,367
=========== ========== =======
</TABLE>
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1993:
NET
AGGREGATE AGGREGATE REALIZED
PROCEEDS COST GAIN/(LOSS)
---------- --------- -----------
<S> <C> <C> <C>
Fund A $ 4,973,090 4,166,392 806,698
Fund D 3,808,556 3,738,109 70,447
Fund E 7,731,536 6,621,762 1,109,774
Fund F 5,262,837 4,647,088 615,749
Fund G 2,775,031 2,723,409 51,622
----------- ---------- ---------
$24,551,050 21,896,760 2,654,290
=========== ========== =========
</TABLE>
<PAGE> 13
M. SUBSEQUENT EVENTS
The change in net unrealized gains or losses arising in the various funds
of the Plan after December 31, 1994 and prior to June 1, 1995 are as
follows:
<TABLE>
<CAPTION>
UNREALIZED UNREALIZED NET CHANGE IN
GAINS/(LOSSES) GAINS/(LOSSES) UNREALIZED
AT DECEMBER 31, 1994 AT MAY 31, 1995 GAINS/(LOSSES)
-------------------- --------------- --------------
<S> <C> <C> <C>
Fund A $(4,061,443) (1,448,338) 2,613,105
Fund B 0 0 0
Fund C 0 0 0
Fund D (193,976) 1,902,614 2,096,590
Fund E 8,084,533 11,504,813 3,420,280
Fund F 795,884 2,309,378 1,513,494
Fund G (596,918) 613,393 1,210,311
Fund H (1,360,452) (1,216,930) 143,522
Loan Fund $ 0 0 0
</TABLE>
<PAGE> 14
RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN B SCHEDULE I
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
NUMBER OF
SHARES, UNITS UNREALIZED
OR PRINCIPAL MARKET APPRECIATION
AMOUNTS COST VALUE (DEPRECIATION)
------------- ------------ ----------- --------------
<S> <C> <C> <C> <C>
AT DECEMBER 31, 1994
Directed Account Short-Term
Investment Fund 621,016 $ 621,016 621,016
Fund A 831,632 22,643,220 18,581,777 (4,061,443)
Fund B 50,313,811 50,313,811 50,313,811
Fund C 2,248,172 2,248,172 2,248,172
Fund D 1,551,496 15,458,575 15,264,599 (193,976)
Fund E 2,920,261 25,054,760 33,139,293 8,084,533
Fund F 414,102 10,088,165 10,884,049 795,884
Fund G 707,519 10,622,455 10,025,537 (596,918)
Fund H 142,596 2,430,211 1,069,759 (1,360,452)
Loan Fund 7,931,900 7,931,900
------------ ----------- ----------
$147,412,285 150,079,913 2,667,628
------------ ----------- ----------
AT DECEMBER 31, 1993
Directed Account Short-Term
Investment Fund 566,100 $ 566,100 566,100
Fund A 682,525 18,671,027 18,152,666 (518,361)
Fund B 46,532,755 46,532,755 46,532,755
Fund C 2,136,004 2,136,004 2,136,004
Fund D 1,333,476 13,467,794 14,228,186 760,392
Fund E 2,516,944 20,843,969 30,178,166 9,334,197
Fund F 329,142 7,907,041 8,886,848 979,807
Fund G 454,223 6,682,646 7,135,855 453,209
Fund H 170,084 2,733,724 2,593,783 (139,941)
Loan Fund 7,279,566 7,279,566 7,279,566
------------ ----------- ----------
$126,820,626 137,689,929 10,869,303
------------ ----------- ----------
Net appreciation/(depreciation) included in
Statement of Income and Changes in Plan
Equity for the Year Ended December 31, 1994 $(8,201,675)
===========
</TABLE>
<PAGE> 15
RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN B SCHEDULE II
SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1994
The are no reportable transactions during the year
ended December 31, 1994
<PAGE> 16
Independent Auditor's Consent
-----------------------------
The Participant and Administrator
Ryder System, Inc. Employee Savings Plan B:
We consent to incorporation by reference in the Registration Statement (No.
33-4333) on Form S-8 of Ryder System, Inc. covering the Ryder System, Inc.
Employee Savings Plan B, of our report dated June 12, 1995, relating to the
statements of financial position with fund information of the Ryder System,
Inc. Employee Savings Plan B as of December 31, 1994 and 1993, and the related
statements of income and changes in plan equity with fund information for each
of the years in the two-year period ended December 31, 1994, and related
schedules of investments as of December 31, 1994 and 1993, and schedule of
reportable transactions for the year ended December 31, 1994, which report
appears in the December 31, 1994 annual report on Form 11-K of the Ryder
System, Inc. Employee Savings Plan B filed by Ryder System, Inc.
KPMG Peat Marwick LLP
Miami, Florida
June 26, 1995
<PAGE> 17
REQUIRED INFORMATION
Financial Statements
Independent Auditors' Report
Statement of Financial Position, with Fund Information, as of
December 31, 1994 and 1993
Statement of Income & Changes in Plan Equity, with Fund Information, for
the year ending December 31, 1994 and 1993
Notes to Financial Statements
Exhibits
Schedule I - Schedule of Investments
as of December 31, 1994 and 1993
Schedule II - Schedule of Reportable Transactions
Independent Auditors' Consent
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Ryder
System, Inc. Retirement Committee has duly caused this annual report to be
signed by the undersigned thereunto duly authorized.
RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN B
------------------------------------------
Date: June 27, 1995 By /s/ Thomas E. McKinnon
-------------------------------------------
Thomas E. McKinnon
Chairman, Ryder System, Inc. Retirement Committee
Executive Vice President, Human Resources
Ryder System, Inc.
