<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, 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 ____.
Commission file number #________
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,
1995 and 1994, and the related statements of income and changes in plan equity
with fund information for each of the years in the three-year period ended
December 31, 1995. 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, 1995 and 1994, and the changes in net assets available for
benefits for each of the years in the three-year period ended December 31,
1995, 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 statement
of financial position with fund information and statement 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 14, 1996
<PAGE> 3
RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN B
STATEMENT OF FINANCIAL POSITION WITH FUND INFORMATION
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Assets Fund A Fund B Fund C Fund D Fund E Fund F Fund G
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investments:
Fixed income investments,
at cost $ 779,262 7,122,281 0 268,153 580,997 268,165 134,075
Group annuity insurance
contracts, at cost 0 65,086,146 0 0 0 0 0
Pooled investment funds
(cost, $94,496,116) 0 0 0 25,936,796 57,518,443 21,226,632 12,642,366
Securities of
participating employer
(cost, $23,995,480) 20,649,019 0 0 0 0 0 0
Participant loans receivable 0 0 0 0 0 0 0
------------------------------------------------------------------------
Total investments 21,428,281 72,208,427 0 26,204,949 58,099,440 21,494,797 12,776,441
Dividends and interest
receivable 3,767 394,067 0 89,515 0 405 228,407
Contributions receivable
and other 55,972 197,891 1,760 65,875 144,896 50,939 37,574
Interfund transfers
receivable (payable) 682,002 (71,997) 103 (45,492) 118,529 20,276 (432)
------------------------------------------------------------------------
Total assets $22,170,022 72,728,388 1,863 26,314,847 58,362,865 21,566,417 13,041,990
========================================================================
Liabilities and Plan Equity
Other liabilities $ 342,838 215,340 1,863 42,505 90,727 31,125 23,715
Plan equity 21,827,184 72,513,048 0 26,272,342 58,272,138 21,535,292 13,018,275
------------------------------------------------------------------------
Total liabilities
and plan equity $22,170,022 72,728,388 1,863 26,314,847 58,362,865 21,566,417 13,041,990
========================================================================
Number of units 272,574 6,613,336 0 657,858 1,026,469 286,159 234,418
========================================================================
Plan equity per unit $ 80.08 10.96 0.00 39.94 56.77 75.26 55.53
========================================================================
</TABLE>
<TABLE>
<CAPTION>
Assets Fund H Fund I Fund J Fund K Loans Total
---------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investments:
Fixed income investments,
at cost 750,251 0 0 0 0 9,903,184
Group annuity insurance
contracts, at cost 0 0 0 0 0 65,086,146
Pooled investment funds
(cost, $94,496,116) 0 591,543 386,041 265,388 0 118,567,209
Securities of
participating employer
(cost, $23,995,480) 0 0 0 0 0 20,649,019
Participant loans receivable 0 0 0 0 12,643,324 12,643,324
--------------------------------------------------------
Total investments 750,251 591,543 386,041 265,388 12,643,324 226,848,882
Dividends and interest
receivable 2,431 0 0 0 233,563 952,155
Contributions receivable
and other 0 969 1,431 846 398,880 957,033
Interfund transfers
receivable (payable) (682,494) 0 0 (20,495) 0 0
--------------------------------------------------------
Total assets 70,188 592,512 387,472 245,739 13,275,767 228,758,070
========================================================
Liabilities and Plan Equity
Other liabilities 70,188 0 0 0 445,379 1,263,680
Plan equity 0 592,512 387,472 245,739 12,830,388 227,494,390
--------------------------------------------------------
Total liabilities
and plan equity 70,188 592,512 387,472 245,739 13,275,767 228,758,070
=================================
Number of units 0 6,959 4,762 3,100
=================================
Plan equity per unit 0.00 85.14 81.37 79.27
=================================
</TABLE>
See accompanying notes to financial statements.
<PAGE> 4
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
----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investments:
Fixed income investments,
at cost $ 667,248 1,266,239 116,146 470,545 1,029,562
Group annuity insurance
contracts, at contract value 0 50,313,811 0 0 0
Pooled investment funds
(cost, $63,472,127) 0 0 2,248,172 15,264,599 33,139,293
Securities of
participating employer
(cost, $22,643,220) 18,581,777 0 0 0 0
Other Securities
(cost, $2,430,211) 0 0 0 0 0
Participant loans receivable 0 0 0 0 0
----------------------------------------------------------------
Total investments 19,249,025 51,580,050 2,364,318 15,735,144 34,168,855
Dividends and interest
receivable 368 298,653 130 138 67
Contributions receivable
and other 20,044 18,373 18,856 24,308 29,898
Interfund transfers
receivable (payable) 619,917 152,408 37,926 (164,803) (194,645)
----------------------------------------------------------------
Total assets $ 19,889,354 52,049,484 2,421,230 15,594,787 34,004,175
================================================================
Liabilities and Plan Equity
Other liabilities $ 706,459 571,806 61,425 3,646 513,717
Plan equity 19,182,895 51,477,678 2,359,805 15,591,141 33,490,458
----------------------------------------------------------------
Total liabilities
and plan equity $ 19,889,354 52,049,484 2,421,230 15,594,787 34,004,175
================================================================
Number of units 276,586 5,042,557 115,204 518,324 833,001
================================================================
Plan equity per unit $ 69.36 10.21 20.48 30.08 40.20
================================================================
</TABLE>
<TABLE>
<CAPTION>
Assets Fund F Fund G Fund H Loan Fund Total
----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investments:
Fixed income investments,
at cost 537,308 646,568 1,117 0 4,734,733
Group annuity insurance
contracts, at contract value 0 0 0 0 50,313,811
Pooled investment funds
(cost, $63,472,127) 10,884,049 10,025,537 0 0 71,561,650
Securities of
participating employer
(cost, $22,643,220) 0 0 0 0 18,581,777
Other Securities
(cost, $2,430,211) 0 0 1,069,759 0 1,069,759
Participant loans receivable 0 0 0 7,931,900 7,931,900
----------------------------------------------------------------
Total investments 11,421,357 10,672,105 1,070,876 7,931,900 154,193,630
Dividends and interest
receivable 160 192 16,739 115,040 431,487
Contributions receivable
and other 25,044 529 6,995 380,243 524,290
Interfund transfers
receivable (payable) (111,954) (99,863) (23,391) (215,595) 0
----------------------------------------------------------------
Total assets 11,334,607 10,572,963 1,071,219 8,211,588 155,149,407
================================================================
Liabilities and Plan Equity
Other liabilities 18,976 75,204 1,308 0 1,952,541
Plan equity 11,315,631 10,497,759 1,069,911 8,211,588 153,196,866
----------------------------------------------------------------
Total liabilities
and plan equity $11,334,607 10,572,963 1,071,219 8,211,588 155,149,407
================================================================
Number of units 191,008 219,390 20,455
==================================
Plan equity per unit 59.24 47.85 52.31
==================================
</TABLE>
See accompanying notes 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, 1995
<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 $ 590,297 0 0 2,892,143 3,035,211 2,409,941
Interest 15,642 4,599,014 36,897 18,771 40,670 14,078
----------------------------------------------------------------------
Net investment income 605,939 4,599,014 36,897 2,910,914 3,075,881 2,424,019
Realized gains/(losses) 901,883 0 0 111,744 1,081,927 174,229
Net change in
unrealized appreciation
on investments 1,677,760 0 0 2,726,812 11,126,677 1,100,934
Contributions:
Employer contributions 852,625 2,860,459 64,592 609,985 1,290,239 692,433
Employee contributions 2,757,697 7,381,015 102,217 2,541,017 5,305,673 2,908,670
----------------------------------------------------------------------
Total contributions 3,610,322 10,241,474 166,809 3,151,002 6,595,912 3,601,103
Participant loan repayments 555,485 1,570,060 16,744 485,329 1,121,031 456,057
Distributions and other (994,377) (5,011,788) (80,485) (644,943) (1,472,141) (571,587)
Transfer from plan A 1,602,759 9,479,382 852,637 1,147,496 2,339,258 1,077,097
Plan fees and expenses (65,865) (291,526) (1,895) (47,794) (87,683) (28,190)
Loans to participants (934,498) (2,886,601) (22,806) (833,551) (1,985,110) (704,573)
Interfund transfers (4,315,119) 3,335,355 (3,327,706) 1,674,192 2,985,928 2,690,572
----------------------------------------------------------------------
Net changes in
plan equity 2,644,289 21,035,370 (2,359,805)10,681,201 24,781,680 10,219,661
Plan equity at
beginning of period 19,182,895 51,477,678 2,359,805 15,591,141 33,490,458 11,315,631
----------------------------------------------------------------------
Plan equity at
end of period $ 21,827,184 72,513,048 0 26,272,342 58,272,138 21,535,292
======================================================================
</TABLE>
<TABLE>
<CAPTION>
Fund G Fund H Fund I Fund J Fund K Loan Fund Total
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net investment income:
Dividends 878,367 11,852 0 0 0 0 9,817,811
Interest 9,385 0 0 0 0 663,637 5,398,094
------------------------------------------------------------------------
Net investment income 887,752 11,852 0 0 0 663,637 15,215,905
Realized gains/(losses) (81,314) (404,454) 3,554 15,330 1,616 0 1,804,515
Net change in
unrealized appreciation
on investments 923,695 397,674 55,557 20,209 27,686 0 18,057,004
Contributions:
Employer contributions 637,377 0 46,512 31,774 7,953 0 7,093,949
Employee contributions 2,623,473 0 213,966 200,321 55,961 0 24,090,010
-----------------------------------------------------------------------
Total contributions 3,260,850 0 260,478 232,095 63,914 0 31,183,959
Participant loan repayments 396,807 3,655 11,706 3,972 4,943 (4,625,789) 0
Distributions and other (661,005) (42,121) (3,027) (897) (484) (508,480) (9,991,335)
Transfer from plan A 924,945 62,414 0 0 0 1,090,529 18,576,517
Plan fees and expenses (21,407) (4,681) 0 0 0 0 (549,041)
Loans to participants (569,428) (26,823) (27,106) (7,076) (1,331) 7,998,903 0
Interfund transfers (2,540,379) (1,067,427) 291,350 123,839 149,395 0 0
-----------------------------------------------------------------------
Net changes in
plan equity 2,520,516 (1,069,911) 592,512 387,472 245,739 4,618,800 74,297,524
Plan equity at
beginning of period 10,497,759 1,069,911 0 0 0 8,211,588 153,196,866
-----------------------------------------------------------------------
Plan equity at
end of period 13,018,275 0 592,512 387,472 245,739 12,830,388 227,494,390
=======================================================================
</TABLE>
See accompanying notes 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, 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 0 0 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 0 0 6,952 155,174 7,922
Net change in unrealized
(depreciation) on investments (3,543,082) 0 0 (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
============================================================================
</TABLE>
<TABLE>
<CAPTION>
Fund G Fund H Loan Fund Total
-----------------------------------------------------------
<S> <C> <C> <C> <C>
Net investment income:
Dividends 1,082,644 6,060 0 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 0 284,367
Net change in unrealized
(depreciation) on investments (1,050,127) (1,220,511) 0 (8,201,675)
Contributions:
Employer contributions 164,233 (278) 0 1,753,996
Employee contributions 1,978,315 0 0 16,890,990
-----------------------------------------------------------
Total contributions 2,142,548 (278) 0 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) 0 (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 notes to financial statements.
<PAGE> 7
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> <C>
Net investment income:
Dividends $ 461,120 0 0 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 0 0 70,447 1,109,774 615,749
Net change in unrealized appreciation/
(depreciation) on investments 1,374,522 0 0 412,264 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 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) 0 0 0 0 0
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 0 0 0 0 0 0
period
------------------------------------------------------------------------------
Plan equity at end of
period $ 18,199,493 46,111,962 2,105,492 14,511,046 30,032,624 8,860,463
==============================================================================
</TABLE>
<TABLE>
<CAPTION>
Fund G Fund H Loan Fund Total
------------------------------------------------------
<S> <C> <C> <C> <C>
Net investment income:
Dividends 791,381 0 0 4,690,135
Interest 2,908 0 472,546 4,684,437
------------------------------------------------------
Net investment income 794,289 0 472,546 9,374,572
Realized gains 51,622 0 0 2,654,290
Net change in unrealized appreciation/
(depreciation) on investments 1,090,373 (139,941) 0 6,096,871
Contributions:
Employer contributions 131,122 0 0 2,248,415
Employee contributions 1,210,112 0 0 19,187,583
------------------------------------------------------
Total contributions 1,341,234 0 0 21,435,998
Participant loan repayments 248,464 0 (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) 0 0 (238,814)
Loans to participants (233,887) (2,663) 4,807,493 0
Transfer from Plan A 5,656,267 (61,549) 8,214,929 134,692,802
Equity transfer to Fund H 0 3,014,323 0 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 notes to financial statements.
<PAGE> 8
RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN B
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
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 fixed income investments, 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. RECLASSIFICATION
Certain 1994 financial statement amounts have been reclassified to conform
with the current year's presentation.
C. USE OF ESTIMATES
The Plan administrator has made a number of estimates and assumptions
relating to the reporting of assets and liabilities and the disclosure of
contingent assets and liabilities to prepare these financial statements in
conformity with generally accepted accounting principles. Actual results
could differ from those estimates.
2. THE PLAN
The following description of the Plan reflects all Plan amendments through
December 31, 1995, 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 transferred from the Ryder
System, Inc. Employee Savings Plan A. Effective January 1, 1995, field
hourly employees of Ryder Dedicated Logistics, Inc. and full-time employees
of Ryder Driver Leasing, Inc. became eligible for this Plan. Any related
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
<PAGE> 9
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 of Ryder System, Inc. (the "Company") must meet certain
eligibility requirements related to employment date, age and service hours.
In general, salaried employees of the Company and participating
affiliates, field hourly employees of Ryder Dedicated Logistics, Inc. and
full-time employees of Ryder Driver Leasing, Inc. 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 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,
1995 and 1994 is as follows:
<TABLE>
<CAPTION>
1995 1994
----- -----
<S> <C> <C>
Fund A 3,786 2,548
Fund B 8,006 3,104
Fund C 0 628
Fund D 3,272 2,041
Fund E 4,896 3,202
Fund F 3,146 1,776
Fund G 2,832 1,778
Fund H 0 2,010
Fund I 63 0
Fund J 168 0
Fund K 264 0
Loan Fund 2,328 1,351
</TABLE>
3. 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. Participants may transfer among
funds on a daily basis. Prior to April 17, 1995, earnings were 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
<PAGE> 10
accounts generally continue for a period of two to five years after their
inception. During 1995 and 1994, the yield on open funding contracts
ranged from 4.89% to 9.05% for both years.
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 were merged into Fund B and this fund was
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. 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 US 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 were transferred to the Templeton Foreign Fund. All investments
in the Templeton World Fund have been discontinued. Like the Templeton
World Fund, the Templeton Foreign Fund's objective is long-term capital
growth. The Templeton Foreign Fund maintains a flexible investment policy
and can invest in all types of securities in any foreign country, developed
or undeveloped.
Investment Fund H ("Fund H") - Fund H was invested in Aviall, Inc. Common
stock and was a frozen fund. Participants could not contribute to nor
transfer into the fund. Participants could transfer assets from Fund H to
any other investment fund of the Plan. Monies remaining in the fund at
December 31, 1995, were liquidated and reinvested in Fund A.
Investment Fund I ("Fund I") - Effective April 1, 1995, the Life Solutions
Growth Fund managed by State Street Bank was added as an investment option
in the Plan. This
<PAGE> 11
fund's primary objective is price appreciation; income is secondary. The
typical allocation (subject to current market conditions) is 65% US
equities, 15% international equities and 20% bonds.
Investment Fund J ("Fund J") - Effective April 1, 1995, the Life Solutions
Balanced Growth Fund managed by State Street Bank was added as an
investment option in the Plan. This fund's primary objective is to provide
both current income and opportunities for price appreciation. The typical
allocation (subject to current market conditions) is 50% US equities, 10%
international equities and 40% bonds.
Investment Fund K ("Fund K") - Effective April 1, 1995, the Life Solutions
Income & Growth Fund managed by State Street Bank was added as an
investment option in the Plan. This fund's primary objective is to provide
a high level of income and more limited opportunities for price
appreciation. The typical allocation (subject to current market conditions)
is 35% US equities, 5% international equities and 60% bonds.
4. 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.
Effective April 1, 1995, the Company matches 50% of the employee's annual
contribution not to exceed the greater of (1) 50% of the first $1,200 in
contributions for any plan year, or, (2) 50% of the first 3% of the
employee's compensation for any plan year. 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.
5. 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 1995 and 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.
<PAGE> 12
<TABLE>
<CAPTION>
1995 1994
-------- -------
<C> <C> <C>
Fund A $ 23,394 49,221
Fund B 119,839 205,931
Fund C 0 34,788
Fund D 9,538 23,353
Fund E 16,587 63,623
Fund F 9,310 34,909
Fund G 11,090 25,947
Fund H 0 3,527
Fund I 4,637 36,088
Fund J 3,393 0
Fund K 0 0
Loan Fund 4,334 0
-------- -------
Total $202,122 477,387
======== =======
</TABLE>
6. 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.
7. DISTRIBUTIONS TO AVIALL 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.
8. 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.
<PAGE> 13
9. 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.
10. 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. The Company requested
in March, 1995 a tax determination letter from the IRS for the Ryder
System, Inc. Employee Savings Plan B but has not yet received a response.
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.
11. 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.
<PAGE> 14
12. NET REALIZED GAINS OR LOSSES
Net realized gains or losses on investments covering each of the last two
years are as follows:
FOR THE YEAR ENDED DECEMBER 31, 1995:
<TABLE>
<CAPTION>
NET
AGGREGATE AGGREGATE REALIZED
PROCEEDS COST GAIN/(LOSS)
--------- ----------- -----------
<S> <C> <C> <C>
Fund A $ 3,052,947 2,151,064 901,883
Fund D 1,057,007 945,263 111,744
Fund E 3,158,219 2,076,292 1,081,927
Fund F 1,021,856 847,627 174,229
Fund G 15,406,810 15,488,124 (81,314)
Fund H 1,323,316 1,727,770 (404,454)
Fund I 67,853 64,299 3,554
Fund J 410,114 394,784 15,330
Fund K 36,743 35,127 1,616
----------- ---------- ---------
$25,534,865 23,730,350 1,804,515
=========== ========== =========
FOR THE YEAR ENDED DECEMBER 31, 1994:
NET
AGGREGATE AGGREGATE REALIZED
PROCEEDS COST GAIN/(LOSS)
----------- ---------- -----------
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
=========== ========== =======
FOR THE YEAR ENDED DECEMBER 31, 1993:
NET
AGGREGATE AGGREGATE REALIZED
PROCEEDS COST GAIN/(LOSS)
--------- ----------- -----------
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> 15
13. SUBSEQUENT EVENTS
The change in net unrealized gains or losses arising in the various funds
of the Plan after December 31, 1995, and prior to May 1, 1996, are as
follows:
<TABLE>
<CAPTION>
UNREALIZED UNREALIZED NET CHANGE IN
APPRECIATION APPRECIATION UNREALIZED
AT DECEMBER 31, 1995 AT APRIL 30, 1996 APPRECIATION
-------------------- ----------------- -------------------
<S> <C> <C> <C>
Fund A $(3,346,461) 221,755 3,568,216
Fund B 0 0 0
Fund C 0 0 0
Fund D 2,532,836 3,949,852 1,417,016
Fund E 19,211,210 25,334,066 6,122,856
Fund F 1,896,818 3,601,281 1,704,463
Fund G 326,777 1,280,955 954,178
Fund H 0 0 0
Fund I 55,557 88,097 32,540
Fund J 20,209 36,720 16,511
Fund K 27,686 27,823 137
Loan Fund 0 0 0
----------- ---------- ----------
$20,724,632 34,540,549 13,815,917
=========== ========== ==========
</TABLE>
<PAGE> 16
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> <C>
AT DECEMBER 31, 1995
Directed Account Short-Term
Investment Fund 9,903,184 9,903,184 9,903,184 0
Fund A 834,304 23,995,480 20,649,019 (3,346,461)
Fund B 65,086,146 65,086,146 65,086,146 0
Fund C 0 0 0 0
Fund D 2,237,860 23,403,960 25,936,796 2,532,836
Fund E 3,771,701 38,307,233 57,518,443 19,211,210
Fund F 713,740 19,329,814 21,226,632 1,896,818
Fund G 1,377,164 12,315,589 12,642,366 326,777
Fund H 0 0 0 0
Fund I 50,671 535,986 591,543 55,557
Fund J 33,905 365,832 386,041 20,209
Fund K 23,666 237,702 265,388 27,686
Loans 12,643,324 12,643,324 12,643,324 0
-------------------------
206,124,250 226,848,882 20,724,632
-------------------------
AT DECEMBER 31, 1994
Directed Account Short-Term
Investment Fund 4,734,733 4,734,733 4,734,733 0
Fund A 831,632 22,643,220 18,581,777 (4,061,443)
Fund B 50,313,811 50,313,811 50,313,811 0
Fund C 2,248,172 2,248,172 2,248,172 0
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)
Fund I 0 0 0 0
Fund J 0 0 0 0
Fund K 0 0 0 0
Loans 7,931,900 7,931,900 7,931,900 0
-------------------------
151,526,002 154,193,630 2,667,628
------------------------- ------------
Net appreciation included in
statement of income and
changes in plan equity 18,057,004
============
</TABLE>
<PAGE> 17
RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN B
SCHEDULE II -- SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
PROCEEDS
--------
<S> <C>
Transfer from Plan A
Fund B: Interest Income Fund $9,479,382
Loans to participants
Loan Fund: $7,998,903
</TABLE>
<PAGE> 18
Independent Auditors' Consent
The Participants and Administrator
Ryder System, Inc. Employee Savings Plan B:
We consent to incorporation by reference in the Registration Statement (No.
33-58003) on Form S-8 of Ryder System, Inc. covering the Ryder System, Inc.
Employee Savings Plan B, of our report dated June 14, 1996, relating to the
statements of financial position with fund information of the Ryder System, Inc.
Employee Savings Plan B as of December 31, 1995 and 1994, and the related
statements of income and changes in plan equity with fund information for each
of the years in the three-year period ended December 31, 1995, and related
schedules of investments as of December 31, 1995 and 1994, and schedule of
reportable transactions for the year ended December 31, 1995, which report
appears in the December 31, 1995 annual report on Form 11-K of the Ryder System,
Inc. Employee Savings Plan B filed by Ryder System, Inc.
/s/ KPMG PEAT MARWICK LLP
Miami, Florida
June 27, 1996
<PAGE> 19
REQUIRED INFORMATION
Financial Statements
Independent Auditors' Report
Statement of Financial Position, with Fund Information, as of
December 31, 1995 and 1994
Statement of Income & Changes in Plan Equity, with Fund Information,
for the years ending December 31, 1995, 1994, and 1993
Notes to Financial Statements
Exhibits
Schedule I - Schedule of Investments
as of December 31, 1995 and 1994
Schedule II - Schedule of Reportable Transactions
for the year ended December 31, 1995
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: July 2, 1996 By /s/ J. Ernest Riddle
--------------------------------------------------
J. Ernest Riddle
Member - Retirement Committee
President - International Division
