<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------------------
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
--------------------------
COMMISSION FILE NUMBER: 0-22098
--------------------------
FOR FISCAL YEAR ENDED
DECEMBER 31, 1997
--------------------------
A. Full Title of the Plan and the Address of the Plan:
Insilco Corporation Employee Thrift Plan
425 Metro Place North, Fifth Floor
Dublin, Ohio 43017
B. Name of the Issuer of the Securities Held Pursuant to the Plan and the
Address of its Principal Executive Officer:
Insilco Corporation
425 Metro Place North, Fifth Floor
Dublin, Ohio 43017
<PAGE> 2
INSILCO CORPORATION
EMPLOYEE THRIFT PLAN
Financial Statements and Supplemental Schedules
December 31, 1997 and 1996
(With Independent Auditors' Report Thereon)
<PAGE> 3
INSILCO CORPORATION
EMPLOYEE THRIFT PLAN
<TABLE>
<CAPTION>
INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
- ---------------------------------------------------------------------------------------------------------------------------
Page(s)
-------
<S> <C>
Independent Auditors' Report ................................................................................. 1
Financial Statements:
Statements of Net Assets Available for Benefits,
December 31, 1997 and 1996 ........................................................................... 2
Statements of Changes in Net Assets Available for Benefits with Fund Information,
Years ended December 31, 1997 and 1996 ............................................................... 3-4
Notes to Financial Statements ................................................................................ 5-8
Supplemental Schedules:
Schedule I - Line 27(a) - Schedule of Assets Held for Investment Purposes ............................... 9
Schedule II - Line 27(d) - Schedule of Reportable Transactions .......................................... 10
</TABLE>
<PAGE> 4
INDEPENDENT AUDITORS' REPORT
To the Participants and Administrator of the
Insilco Corporation Employee Thrift Plan:
We have audited the accompanying statements of net assets available for
benefits of the Insilco Corporation Employee Thrift Plan (the Plan) as of
December 31, 1997 and 1996, and the related statements of changes in net
assets available for benefits with fund information for the years ended
December 31, 1997 and 1996. 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
from 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, 1997 and 1996, and the changes in net assets available
for benefits with fund information for the years ended December 31, 1997
and 1996 in conformity with generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the
basic financial statements taken as a whole. The 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 changes in net assets available
for plan benefits is presented for purposes of additional analysis rather
than to present the changes in net assets available for plan benefits of
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.
KPMG Peat Marwick LLP
June 16, 1998
1
<PAGE> 5
INSILCO CORPORATION
EMPLOYEE THRIFT PLAN
Statements of Net Assets Available for Benefits
December 31, 1997 and 1996
<TABLE>
<CAPTION>
===========================================================================================================================
1997 1996
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investments, at fair value (note 3):
Shares of registered investment companies:
Twentieth Century Ultra Fund $10,052,697 8,140,610
Twentieth Century International Fund 1,852,768 1,430,639
American Century Value Fund 5,289,367 4,303,251
Masterworks S&P 500 Stock Fund 5,417,691 3,768,137
Benham Premium Bond Fund 1,081,655 1,136,652
Benham Premium Government Reserve Fund 3,827,427 3,612,419
JPM Pierpont Diversified Fund 17,848,098 -
Insilco Company Stock Fund 511,526 517,475
Participant loans 1,006,527 512,273
- ---------------------------------------------------------------------------------------------------------------------------
46,887,756 23,421,456
Participants' contribution receivable 246,675 212,794
Employers' contribution receivable 62,497 78,291
Profit sharing contribution receivable 1,482,277 -
- ---------------------------------------------------------------------------------------------------------------------------
Total assets 48,679,205 23,712,541
Participants' contribution payable [note 1(b)] (77,857) (187,753)
- ---------------------------------------------------------------------------------------------------------------------------
Net assets available for benefits $48,601,348 23,524,788
===========================================================================================================================
</TABLE>
See accompanying notes to financial statements.
2
<PAGE> 6
INSILCO CORPORATION
EMPLOYEE THRIFT PLAN
Statements of Changes in Net Assets Available for Benefits with Fund Information
Years ended December 31, 1997 and 1996
<TABLE>
<CAPTION>
==========================================================================================================================
1997
/--------------------- Participant-Directed -----------------------/
--------------------------------------------------------------------
Master-
Twentieth Twentieth American works Benham
Century Century Century S&P 500 Premium
Ultra International Value Stock Bond
Fund Fund Fund Fund Fund
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions:
Investment income:
Net appreciation (depreciation) in fair value
of investments $ (202,801) 37,842 258,415 1,092,940 19,392
Interest and dividends 2,070,824 254,782 856,772 192,689 72,959
- --------------------------------------------------------------------------------------------------------------------------
1,868,023 292,624 1,115,187 1,285,629 92,351
- --------------------------------------------------------------------------------------------------------------------------
Contributions:
Participants' 1,384,202 301,935 673,719 635,384 160,907
Employer's 518,415 125,221 252,314 265,505 65,993
Profit sharing - - - - -
- --------------------------------------------------------------------------------------------------------------------------
1,902,617 427,156 926,033 900,889 226,900
- --------------------------------------------------------------------------------------------------------------------------
Total additions 3,770,640 719,780 2,041,220 2,186,518 319,251
- --------------------------------------------------------------------------------------------------------------------------
Deductions:
Benefits paid to participants or beneficiaries 1,624,311 276,429 731,676 735,767 384,655
Administrative expenses 21,191 4,517 9,459 10,481 2,544
- --------------------------------------------------------------------------------------------------------------------------
Total deductions 1,645,502 280,946 741,135 746,248 387,199
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) prior to interfund transfers 2,125,138 438,834 1,300,085 1,440,270 (67,948)
Interfund transfers (163,104) (1,439) (290,054) 237,054 20,635
Profit sharing plan transfers (note 7) - - - - -
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 1,962,034 437,395 1,010,031 1,677,324 (47,313)
Net assets available for benefits:
Beginning of year 8,185,113 1,434,451 4,315,967 3,784,398 1,138,948
- --------------------------------------------------------------------------------------------------------------------------
End of year $10,147,147 1,871,846 5,325,998 5,461,722 1,091,635
==========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
==========================================================================================================================
1997
/------------------- Participant-Directed -------------------------/
--------------------------------------------------------------------
Benham
Premium JPM
Government Insilco Pierpont
Reserve Stock Loan Diversified
Fund Fund Fund Fund Total
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions:
Investment income:
Net appreciation (depreciation) in fair value
of investments - (94,732) - (97,661) 1,013,395
Interest and dividends 184,200 369 50,076 420,164 4,102,835
- --------------------------------------------------------------------------------------------------------------------------
184,200 (94,363) 50,076 322,503 5,116,230
- --------------------------------------------------------------------------------------------------------------------------
Contributions:
Participants' 271,154 132,337 - - 3,559,638
Employer's 383,913 54,670 - - 1,666,031
Profit sharing - - - 1,482,277 1,482,277
- --------------------------------------------------------------------------------------------------------------------------
655,067 187,007 - 1,482,277 6,707,946
- --------------------------------------------------------------------------------------------------------------------------
Total additions 839,267 92,644 50,076 1,804,780 11,824,176
- --------------------------------------------------------------------------------------------------------------------------
Deductions:
Benefits paid to participants or beneficiaries 541,644 33,991 102,682 - 4,431,155
Administrative expenses 14,005 353 - - 62,550
- --------------------------------------------------------------------------------------------------------------------------
Total deductions 555,649 34,344 102,682 - 4,493,705
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) prior to interfund transfers 283,618 58,300 (52,606) 1,804,780 7,330,471
Interfund transfers (66,760) (62,698) 326,366 - -
Profit sharing plan transfers (note 7) - - 220,494 17,525,595 17,746,089
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 216,858 (4,398) 494,254 19,330,375 25,076,560
Net assets available for benefits:
Beginning of year 3,625,010 528,628 512,273 - 23,524,788
- --------------------------------------------------------------------------------------------------------------------------
End of year 3,841,868 524,230 1,006,527 19,330,375 48,601,348
==========================================================================================================================
</TABLE>
3
<PAGE> 7
INSILCO CORPORATION
EMPLOYEE THRIFT PLAN
Statements of Changes in Net Assets Available for Benefits with Fund
Information, Continued
<TABLE>
<CAPTION>
=============================================================================================================
1996 -- Participant-Directed
-------------------------------------------------------------------------
Vanguard
Money Columbia
Market Fixed Vanguard Twentieth Twentieth American
Reserves Income Quanti- Century Century Century
Prime Securities tative Ultra International Value
Portfolio Fund Portfolios Fund Fund Fund
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Investment income:
Net appreciation (depreci-
ation) in fair value of
investments $ - - - 482,574 20,882 372,211
Interest and dividends - - - 430,073 143,864 407,378
- -------------------------------------------------------------------------------------------------------------
- - - 912,647 164,746 779,589
- -------------------------------------------------------------------------------------------------------------
Contributions:
Participants' - - - 1,323,491 263,100 489,484
Employer's - - - 334,843 67,487 133,087
- -------------------------------------------------------------------------------------------------------------
- - - 1,658,334 330,587 622,571
- -------------------------------------------------------------------------------------------------------------
Total additions - - - 2,570,981 495,333 1,402,160
- -------------------------------------------------------------------------------------------------------------
Deductions:
Benefits paid to participants
or beneficiaries - - - 647,452 82,006 299,912
Administrative expenses - - - 21,841 4,541 8,817
- -------------------------------------------------------------------------------------------------------------
Total deductions - - - 669,293 86,547 308,729
- -------------------------------------------------------------------------------------------------------------
Net increase (decrease) prior
to interfund transfers - - - 1,901,688 408,786 1,093,431
Interfund transfers (3,370,213) (4,406,944) (4,438,426) (1,139,384) 1,012,757 3,194,673
Thermalex plan transfer (note 7) - - - 92,253 12,908 27,863
- -------------------------------------------------------------------------------------------------------------
Net increase (decrease) (3,370,213) (4,406,944) (4,438,426) 854,557 1,434,451 4,315,967
Net assets available for benefits:
Beginning of year 3,370,213 4,406,944 4,438,426 7,330,556 - -
- -------------------------------------------------------------------------------------------------------------
End of year $ - - - 8,185,113 1,434,451 4,315,967
=============================================================================================================
</TABLE>
<TABLE>
<CAPTION>
=============================================================================================================
1996 -- Participant-Directed
-------------------------------------------------------------------------
Master- Benham
works Benham Premium
S&P 500 Premium Government Insilco
Stock Bond Reserve Stock Loan
Fund Fund Fund Fund Fund Total
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Investment income:
Net appreciation (depreci-
ation) in fair value of
investments $ 562,238 (48,178) (9) 106,396 - 1,496,114
Interest and dividends 108,352 76,324 216,423 - 13,527 1,395,941
- -------------------------------------------------------------------------------------------------------------
670,590 28,146 216,414 106,396 13,527 2,892,055
- -------------------------------------------------------------------------------------------------------------
Contributions:
Participants' 470,758 163,193 201,279 106,855 - 3,018,160
Employer's 129,984 43,793 60,117 27,866 - 797,177
- -------------------------------------------------------------------------------------------------------------
600,742 206,986 261,396 134,721 - 3,815,337
- -------------------------------------------------------------------------------------------------------------
Total additions 1,271,332 235,132 477,810 241,117 13,527 6,707,392
- -------------------------------------------------------------------------------------------------------------
Deductions:
Benefits paid to participants
or beneficiaries 320,633 213,266 1,300,180 5,088 41,168 2,909,705
Administrative expenses 9,264 2,729 22,244 275 - 69,711
- -------------------------------------------------------------------------------------------------------------
Total deductions $ 329,897 215,995 1,322,424 5,363 41,168 2,979,416
- -------------------------------------------------------------------------------------------------------------
Net increase (decrease) prior
to interfund transfers 941,435 19,137 (844,614) 235,754 (27,641) 3,727,976
Interfund transfers 2,798,514 1,116,176 4,402,622 290,311 539,914 -
Thermalex plan transfer (note 7) 44,449 3,635 67,002 2,563 - 250,673
- -------------------------------------------------------------------------------------------------------------
Net increase (decrease) 3,784,398 1,138,948 3,625,010 528,628 512,273 3,978,649
Net assets available for benefits:
Beginning of year - - - - - 19,546,139
- -------------------------------------------------------------------------------------------------------------
End of year $3,784,398 1,138,948 3,625,010 528,628 512,273 23,524,788
=============================================================================================================
</TABLE>
See accompanying notes to financial statements.
4
<PAGE> 8
INSILCO CORPORATION
EMPLOYEE THRIFT PLAN
Notes to Financial Statements
December 31, 1997 and 1996
================================================================================
(1) DESCRIPTION OF PLAN
The following brief description of the Insilco Corporation Employee
Thrift Plan (the Plan) provides only general information. Participants
should refer to the booklet entitled Employee Thrift Plan for a
description of the Plan, a copy of which is available to each
participant from the Plan Administrator.
(a) GENERAL
The Plan is a defined-contribution plan covering substantially all
nonunion and certain union employees of Insilco Corporation (Insilco)
and of participating subsidiaries and divisions of Insilco (the
Employers). Employees who have completed six months of service are
eligible for membership. The Plan is administered by the Pension
Committee of the Board of Directors of Insilco (Plan Administrator) and
is subject to the provisions of the Employee Retirement Income Security
Act of 1974 (ERISA).
(b) CONTRIBUTIONS AND FORFEITURES
Each year participants may contribute up to 10% of their pretax annual
compensation, as defined in the Plan. The Employers make a matching
contribution equal to 50% of the first 3% of annual compensation
contributed by the Plan participants. Additionally, the Employers, at
their discretion, may make profit sharing contributions to eligible
participants. Contributions are subject to certain limitations. In 1997
and 1996, certain highly compensated employees exceeded contributions
limitations and were refunded $77,857 and $187,753, respectively, in the
following Plan year. These amounts are disclosed as participants'
contributions payable in the statements of net assets available for
benefits and as a reduction in participants' contributions in the
statements of changes in net assets available for benefits with fund
information.
Forfeitures of nonvested profit sharing account balances may be used to
pay administrative expenses or shall be allocated as an additional
profit sharing contribution in the Plan year following the forfeiture.
Forfeitures of nonvested employer matching contribution account balances
may be used to pay administrative expenses or to reduce the Employers'
future contributions.
(c) PARTICIPANT ACCOUNTS
Each participant's account is credited with the participant's
contributions, the Employers' matching and profit sharing contributions,
an allocation of investment earnings and charged with an allocation of
administrative expense. Allocations are based on participant earnings or
account balances, as defined. Profit sharing contributions are based on
the participant's annual compensation. The benefit to which a
participant is entitled is the benefit that can be provided from the
participant's vested account.
(d) VESTING
A participant is vested immediately in his or her contributions and any
related investment earnings and vests in the Employers' matching
contributions and related investment earnings according to the schedule
below:
===============================================================
Completed Years of Service Vested Percentage
---------------------------------------------------------------
Less than 2 years 0%
2 years but less than 3 25%
3 years but less than 4 50%
4 years but less than 5 75%
5 years or more 100%
===============================================================
5
<PAGE> 9
INSILCO CORPORATION
EMPLOYEE THRIFT PLAN
Notes to Financial Statements
================================================================================
(e) INVESTMENT OPTIONS
Upon enrollment in the Plan, a participant may direct contributions into
any of the following investment options, excluding the JPM Pierpont
Diversified Fund:
o TWENTIETH CENTURY INTERNATIONAL FUND--Funds are invested in
shares of a registered investment company that invests mainly in
common stocks of foreign companies.
o TWENTIETH CENTURY ULTRA FUND--Funds are invested in shares of a
registered investment company that invests mainly in common stocks
of domestic companies.
o AMERICAN CENTURY VALUE FUND--Funds are invested in shares of a
registered investment company that invests mainly in common stocks
of domestic companies.
o MASTERWORKS S&P 500 STOCK FUND--Funds are invested in shares of a
registered investment company that invests in the common stocks of
the S&P 500.
o BENHAM PREMIUM BOND FUND--Funds are invested in shares of a
registered investment company that invests in longer-term bonds
and other debt instruments.
o BENHAM PREMIUM GOVERNMENT RESERVE FUND--Funds are invested in
shares of a registered investment company that invests in bonds of
the U.S. governments and its agencies.
o COMPANY STOCK FUND--Funds are invested in the common stock of
Insilco Corporation.
o CHARLES SCHWAB INDIVIDUALLY DIRECTED RETIREMENT
ACCOUNT--Participants with at least $2,500 may elect to
self-direct the investment of part or all of his/her account.
o JPM PIERPONT DIVERSIFIED FUND--Funds are invested in a balanced
portfolio containing shares of a registered investment company
that invests in common stocks of domestic and international
companies and fixed-income securities.
Investments in the JPM Pierpont Diversified Fund consistent solely of
non-participant directed profit sharing contributions. Additionally,
participant's who are represented by the United Steelworkers of America
Local No. 3875 are not able to contribute into the Company Stock Fund or
Charles Schwab Individually Directed Retirement Account.
(f) PAYMENTS OF BENEFITS
On termination of service due to retirement on or after age 65,
disability or death, a participant will become fully vested with his/her
account. If a portion of a participant's account is related to
contributions made before January 1, 1996, the participant may elect to
receive that portion of his/her account in the form of a single lump-sum
payment, a single life annuity, a joint and 50% survivor annuity, or a
joint and 100% survivor annuity. The portion of a participant's account
that is related to contributions made after January 1, 1996 will
automatically be paid in the form of a lump sum payment.
A participant's beneficiary will receive the participant's account
balance in the event of a participant's death. Employees may withdraw
their vested interest in the Plan under certain hardship conditions, as
defined in the Plan. Terminated participants will be paid their vested
interest in the Plan.
(f) PARTICIPANT LOANS
Participants who are not represented by the United Steelworkers of
America Local No. 3875 may borrow from their accounts. The maximum
amount a participant may borrow is equal to the lesser of (a) 50% of
his/her vested account, or (b) $50,000 reduced by the highest
outstanding balance of a loan outstanding during the previous 12-month
period. The minimum amount a participant may borrow is $1,000. Interest
on the loan is equal to 1% above the prime rate published in the Wall
Street Journal on the last day of the
(Continued)
6
<PAGE> 10
INSILCO CORPORATION
EMPLOYEE THRIFT PLAN
Notes to Financial Statements
================================================================================
month before the loan is requested. The loan must be repaid in equal
installments each regular pay period amortized over a term of no more
than 5 years (or 10 years if the loan is for the purchase of a principal
residence), and is secured by a pledge on the nonborrowed portion of a
participant's account.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) BASIS OF PRESENTATION
The accompanying financial statements have been prepared on the accrual
basis of accounting.
(b) INVESTMENT VALUATION AND INCOME RECOGNITION
Investments are stated at fair value, as determined by quoted market
prices, which represent the net asset value of shares held by each
investment fund of the Plan at year-end. Cost is determined using the
average cost method. Purchases and sales of securities are recorded on a
trade-date basis. Interest income is recorded on the accrual basis.
Dividends are recorded on the ex-dividend date.
(c) PAYMENT OF BENEFITS
Benefits are recorded when paid.
(d) USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of changes in net assets
available for benefits during the reporting period. Actual results could
differ from those estimates.
3) INVESTMENTS
The following table presents investments at fair value which represent
5% or more of the Plan's net assets:
<TABLE>
<CAPTION>
====================================================================================================================
1997 1996
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Twentieth Century Ultra Fund; 368,231 shares in 1997
(289,805 shares in 1996) $10,052,697 8,140,610
Twentieth Century International Fund; 226,223 shares
in 1997 (179,729 shares in 1996) 1,852,768 1,430,639
American Century Value Fund; 761,060 shares in 1997
(652,997 shares in 1996) 5,289,367 4,303,251
Masterworks S&P 500 Stock Fund; 265,704 shares in
1997 (236,841 shares in 1996) 5,417,691 3,768,137
Benham Premium Government Reserve Fund;
3,827,427 shares in 1997 (3,612,419 shares in 1996) 3,827,427 3,612,419
JPM Pierpont Diversified Fund; 1,305,639 shares
in 1997 17,848,098 -
====================================================================================================================
</TABLE>
(Continued)
7
<PAGE> 11
INSILCO CORPORATION
EMPLOYEE THRIFT PLAN
Notes to Financial Statements
================================================================================
(4) PLAN TERMINATION
Although it has not expressed any intent to do so, the Employers have
the right under the Plan to discontinue its contributions at any time
and to terminate the Plan subject to the provisions of ERISA. In the
event of a Plan termination, participants will become fully vested in
their accounts.
(5) TAX STATUS OF THE PLAN
The Internal Revenue Service (IRS) has determined and informed the
Company by a letter dated December 15, 1995, that the Plan is designed
in accordance with applicable sections of the Internal Revenue Code
(IRC). The Plan has been amended since receiving that determination
letter. The plan administrator has been informed by the IRS that a
favorable determination was made; however, a current determination
letter has yet to be received. The plan administrator believes the Plan
is designed and is currently being operated in compliance with the
applicable requirements of the IRC.
During 1992, the Employers discovered that certain employees who were
eligible for participation in the Plan were inadvertently excluded from
notification of their eligibility to participate in the Plan. The
Employers notified the IRS of the failure to notify these employees of
their eligibility to participate, and asked for their assistance in
curing the error under the Voluntary Compliance Resolution Program (VCR
Program). In December 1994, the IRS notified Insilco that it was no
longer eligible to participate in the VCR Program. Insilco subsequently
requested a district office of the IRS to consider this matter under its
"Walk-In" Closing Agreement Program. Insilco reached a settlement with
the IRS which requires the Employers to make additional contributions to
the Plan with respect to the employees erroneously excluded from
participation in the Plan. The Employers paid $863,141 in 1997 and will
pay an additional $184,991 during 1998 under the settlement agreement.
The Plan and the Plan administrator believe that the Plan's tax exempt
status will not be affected and, accordingly, no provision for federal
income taxes in the accompanying financial statements has been made.
(6) RELATED PARTY TRANSACTIONS
The Plan's investments consist of seven mutual funds and one company
stock fund. Of the seven mutual funds, five (Twentieth Century
International Fund, Twentieth Century Ultra Fund, American Century Value
Fund, Benham Premium Bond Fund, and Benham Premium Government Reserve
Fund) are managed by American Century Corporation Services. American
Century Corporation Services is the recordkeeper of the Plan, and
Insilco is the sponsor of the Plan; therefore, these transactions
qualify as party-in-interest.
(7) PLAN AMENDMENT AND MERGERS
Effective January 1, 1996, the employees of Thermalex, Inc. became
eligible to participate in the Plan. In 1996, net assets of $250,673
were transferred into the Plan from the Thermalex, Inc. Employee Thrift
Plan 401(k).
Effective January 1, 1997, the Thrift Plan was amended and restated
primarily to (a) add a new profit sharing component, (b) provide special
provisions for transferred profit sharing accounts, (c) revise how
limits on participants elective deferrals and matching contributions are
calculated, (d) enable employees represented by the United Steelworkers
of America Local No. 3875 to participate in the Plan, and (e) make other
mandated changes to reflect legislative changes. As a result of these
design changes, net assets totaling $17,746,089 were transferred during
1997 from the existing profit sharing plans for Stewart Connector
Systems, Inc., Stewart Stamping Corporation, Thermal Components
Division, Inc., Romac Metals, Inc., and General Thermodynamics, Inc.
into the Plan.
8
<PAGE> 12
INSILCO CORPORATION Schedule I
EMPLOYEE THRIFT PLAN
EIN: 06-0635844
Plan Number: 333
Line 27(a) - Schedule of Assets Held for Investment Purposes
December 31, 1997
<TABLE>
<CAPTION>
====================================================================================================================================
(a) (b) (c) (d) (e)
- -----------------------------------------------------------------------------------------------------------------------------------
Identity of issue, Description of investment including
borrower, lessor, maturity date, rate of interest, Current
or similar party collateral, par or maturity value Cost value
- ------------ --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
* American Century Ultra Fund; 368,231 shares $10,243,899 10,052,697
* American Century International Fund; 226,223 shares 1,850,950 1,852,768
* American Century Value Fund; 761,060 shares 4,881,686 5,289,367
* American Century Government Reserve Fund; 3,827,427 shares 3,827,427 3,827,427
* American Century Premium Bond Fund; 106,567 shares 1,080,966 1,081,655
Barclays PLC Bank S&P 500 Stock Fund; 265,704 shares 4,017,948 5,417,691
J.P. Morgan Pierpont Diversified Fund; 1,305,639 shares 17,966,114 17,848,098
* Insilco Corporation Common Stock Fund; 15,499 shares 518,236 511,526
* - Participant Loans - + 1,006,527
- -----------------------------------------------------------------------------------------------------------------------------------
Total $44,387,226 46,887,756
====================================================================================================================================
</TABLE>
* Party-in-interest
+ Cost of participant loans is $0 as indicated in the instructions to Form 5500,
Line 27(a).
See accompanying independent auditors' report.
9
<PAGE> 13
INSILCO CORPORATION Schedule II
EMPLOYEE THRIFT PLAN
EIN: 06-0635844
Plan Number: 333
Line 27(d) - Schedule of Reportable Transactions
Year ended December 31, 1997
<TABLE>
<CAPTION>
====================================================================================================================================
Series transactions, when aggregated, involving an amount in excess of 5% of the current value of Plan assets:
- ------------------------------------------------------------------------------------------------------------------------------------
(a) (b) (c) (d) (g) (h) (i)
- ------------------------------------------------------------------------------------------------------------------------------------
Current value
of asset on Net
Identity of Description Purchase Selling Cost of transaction gain or
party involved of asset price price asset date (loss)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
JPM Pierpont Diversified Fund Mutual fund $17,945,759 - 17,945,759 17,945,759 -
* Twentieth Century Ultra Fund Mutual fund 5,115,290 3,000,402 7,766,958 8,115,692 348,734
* American Century Value Fund Mutual fund 2,296,881 1,569,180 3,701,415 3,866,061 164,646
Masterworks S&P 500 Stock Fund Mutual fund 1,714,702 1,158,088 2,672,156 2,872,790 200,634
* Benham Premium Government
Reserve Fund Mutual fund 2,161,543 1,946,535 4,108,078 4,108,078 -
====================================================================================================================================
</TABLE>
Note: Columns E (Lease rental) and F (Expense incurred with transaction) have
been omitted because there is no information to report.
* Party-in-interest
See accompanying independent auditors' report.
10
<PAGE> 14
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the trustee of the Insilco Corporation Employee Thrift Plan has duly caused this
annual report to be signed on its behalf by the undersigned hereunto duly
authorized.
INSILCO CORPORATION EMPLOYEE THRIFT PLAN
BY: UMB BANK, TRUSTEE
Date: June 30, 1998 By: /s/ DALE McALLISTER
----------------------------------------------
Dale McAllister, Assistant Vice President
<PAGE> 1
CONSENT OF INDEPENDENT AUDITORS'
The Plan Administrator
Insilco Corporation Employee Thrift Plan 401(k):
We consent to incorporation by reference in the Registration Statement No.
33-80971 on Form S-8 of Insilco Corporation of our report dated June 16, 1998,
relating to the statements of net assets available for benefits as of December
31, 1997 and 1996 of the Insilco Corporation Employee Thrift Plan 401(k), and
the related statements of changes in assets available for benefits with fund
information for the years ended December 31, 1997 and 1996, which report appears
in the Form 11-K for Insilco Corporation Employee Thrift Plan 401(k).
KPMG Peat Marwick LLP
June 29, 1998
