<PAGE> 1
================================================================================
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K/A
ANNUAL REPORT PURSUANT TO SECTION 13 OF
THE SECURITIES EXCHANGE ACT OF 1934
(MARK ONE)
[X] REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF
1934 FOR THE FISCAL YEAR ENDED JANUARY 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO
COMMISSION FILE NUMBER: 1-11592
HAYES LEMMERZ INTERNATIONAL, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE
(STATE OR OTHER JURISDICTION
OF INCORPORATION OR ORGANIZATION)
13-3384636
(I.R.S. EMPLOYER IDENTIFICATION NO.)
38481 HURON RIVER DRIVE, ROMULUS, MICHIGAN
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
48174
(ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (734) 941-2000
SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:
9 1/8% SERIES B SENIOR SUBORDINATED NOTES DUE 2007
SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT:
COMMON STOCK, PAR VALUE $.01 PER SHARE
INDICATE BY CHECK MARK WHETHER THE REGISTRANT (1) HAS FILED ALL REPORTS REQUIRED
TO BE FILED BY SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 DURING
THE PRECEDING 12 MONTHS (OR FOR SUCH SHORTER PERIOD THAT THE REGISTRANT WAS
REQUIRED TO FILE SUCH REPORTS) AND (2) HAS BEEN SUBJECT TO SUCH FILING
REQUIREMENTS FOR THE PAST 90 DAYS. YES [X] NO [ ]
INDICATE BY CHECK MARK IF DISCLOSURE OF DELINQUENT FILERS PURSUANT TO ITEM 405
OF REGULATION S-K IS NOT CONTAINED HEREIN, AND WILL NOT BE CONTAINED, TO THE
BEST OF REGISTRANT'S KNOWLEDGE, IN DEFINITIVE PROXY OR INFORMATION STATEMENTS
INCORPORATED BY REFERENCE IN PART III OF THIS FORM 10-K OR ANY AMENDMENT TO THIS
FORM 10-K. [X]
THE AGGREGATE MARKET VALUE OF VOTING STOCK HELD BY NON-AFFILIATES OF THE
REGISTRANT AS OF APRIL 23, 1998 WAS APPROXIMATELY $298 MILLION.
THE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING AS OF APRIL 24, 1998 WAS
30,090,845 SHARES.
DOCUMENTS INCORPORATED BY REFERENCE
NONE.
================================================================================
<PAGE> 2
The undersigned Registrant hereby amends the following items, financial
statements, exhibits or other portions of its Annual Report on Form 10-K for the
fiscal year ended January 31, 1998, as follows:
Item 14 of the report is amended by adding the following exhibits to
Section (a) 3 of Item 14:
1. Exhibit 28: Annual Report on Form 11-K with respect to the
Registrant's Retirement Savings Plan for the year ended December 31,
1997.
As so amended, Item 14 reads as follows in its entirety:
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
The following documents are filed as part of this report:
(a) 1. Financial Statements
The following financial statements of the Registrant are filed herewith as
part of this report:
(1) Independent Auditors' Report
(2) Consolidated Statements of Operations for the years ended January 31,
1998, 1997 and 1996
(3) Consolidated Balance Sheets at January 31, 1998 and 1997
(4) Consolidated Statements of Changes in Stockholders' Equity (Deficit)
for the years ended January 31, 1998, 1997 and 1996
(5) Consolidated Statements of Cash Flows for the years ended January 31,
1998, 1997 and 1996
(6) Notes to Consolidated Financial Statements
2. Financial Statement Schedules for fiscal 1997, 1996 and 1995
Schedule II Valuation and Qualifying Accounts. All other schedules are
omitted because the information required to be contained therein is disclosed
elsewhere in the financial statements or the amounts involved are not sufficient
to require submission or the schedule is otherwise not required to be submitted.
3. Exhibits
<TABLE>
<S> <C> <C>
(E) 2.1 Agreement and Plan of Merger, dated as of March 28, 1996,
between the Company and MWC Holdings, Inc. ("Holdings").
(H) 2.2 Purchase Agreement, dated as of June 6, 1997, among the
Company, Cromodora Wheels S.p.A., Lemmerz Holding GmbH and
the shareholders of Lemmerz Holding GmbH.
(F) 3.1 Restated Certificate of Incorporation of the Company and
Certificate of Correction thereof.
(F) 3.2 Amended and Restated By-Laws of the Company.
(F) 3.3 Certificate of Merger of Holdings into the Company, filed
with the Secretary of State of Delaware on July 2, 1996.
(K) 3.4 Certificate of Amendment to Restated Certificate of
Incorporation of the Company.
(A) 4.1 Reference is made to Exhibits 3.1 and 3.2.
(B) 4.2 Indenture, dated as of November 15, 1992, between the
Company and Manufacturers and Traders Trust Company, as
Trustee ($100,000,000 principal amount of 9 1/4% Senior
Notes due 2002), including all exhibits thereto.
(B) 4.3 Form of Senior Note issued pursuant to the Indenture filed
as Exhibit 4.2 hereto.
(F) 4.4 First Supplemental Indenture, dated as of June 20, 1996, to
the Indenture filed as Exhibit 4.2.
(F) 4.5 Second Supplemental Indenture, dated as of June 26, 1996, to
the Indenture filed as Exhibit 4.2.
(E) 4.6 Form of Subscription Agreement between the Company and the
New Investors.
(I) 4.7 Indenture, dated as of June 30, 1997, among the Company, as
issuer, certain subsidiaries, as guarantors, and The Bank of
New York as Trustee.
</TABLE>
1
<PAGE> 3
<TABLE>
<S> <C> <C>
(J) 4.8 Registration Rights Agreement, dated as June 30, 1997, among
the Company, certain subsidiaries, CIBC Wood Gundy
Securities Corp., Merrill Lynch Pierce Fenner & Smith
Incorporated, Bear, Stearns & Co. Inc., Morgan Stanley & Co.
Inc. and Salomon Brothers Inc.
(J) 4.9 Indenture, dated as of July 22, 1997, among the Company, as
issuer, certain subsidiaries, as guarantors, and The Bank of
New York as Trustee.
(J) 4.10 Registration Rights Agreement, dated as July 22, 1997, among
the Company, certain subsidiaries, CIBC Wood Gundy
Securities Corp. and Merrill Lynch Pierce Fenner & Smith
Incorporated.
(A) 10.1 Management Services Agreement between the Company and K-H
Corporation ("K-H").
(A) 10.2 Tax Sharing Agreement among the Company, Kelsey-Hayes
Company and K-H.
(B) 10.3 Conveyance and Transfer Agreement, dated as of December 15,
1992, between the Company and Kelsey-Hayes Company.
(A) 10.4 Lease Agreement between the Company and K-H Corporation.
(A) 10.5 Michigan Workers' Compensation Claims Payment Guarantee
between the Company and Kelsey-Hayes Company.
(A) 10.6* 1992 Incentive Stock Option Plan.
(A) 10.7* Long-Term Savings Plan.
(A) 10.8 Non-competition Agreement between the Company and Varity
Corporation.
(A) 10.9* Employment Agreement, dated February 1, 1993, between Hayes
Wheels, S.p.A. and Giancarlo Dallera.
(B) 10.10 Joint Venture Agreement (the "Joint Venture Agreement"),
dated as of February 16, 1993, by and between the Company
and Nova Hut a.s. ("NH").
(C) 10.11 Amendment No. 1, dated August 17, 1993, to the Joint Venture
Agreement.
(C) 10.12 Amendment No. 2, dated October 26, 1993, to the Joint
Venture Agreement.
(C) 10.13 Project Funds Agreement, dated November 12, 1993, between
Hayes Wheels Autokola NH, a.s. ("Autokola"), the Company and
International Finance Corporation ("IFC").
(C) 10.14 Fee Clawback Agreement, dated November 12, 1993, between
Autokola, the Company and IFC.
(C) 10.15 Subordination Agreement, dated November 12, 1993, between
Autokola, NH, the Company and IFC.
(C) 10.16 Investment Agreement, dated November 12, 1993, between
Autokola and IFC.
(A) 10.17* Employee Benefits Agreement.
(D) 10.18* Severance Agreements, each dated November 6, 1995, between
the Company and its officers and certain employees.
(E) 10.21 Registration Rights Agreement, dated as of March 28, 1996,
among the Company, Varity Corporation and K-H Corporation.
(F) 10.22 Form of Indemnification Agreement between the Company and
each of its directors (filed as Exhibit B to the
Stockholders' Agreement filed as Exhibit 2.2).
(G) 10.23* First Amendment to Employment Agreement, dated June 6, 1996,
between Hayes Wheels, S.p.A. and Giancarlo Dallera.
(H) 10.24 Consulting Agreement, dated as of June 6, 1997, between the
Company and H.K.L., L.L.C.
(H) 10.25 Consulting Agreement, dated as of June 6, 1997, between the
Company and Horst Kukwa-Lemmerz.
(I) 10.26 Amended and Restated Stockholders' Agreement, dated as of
June 30, 1997, among the Company, Joseph Littlejohn & Levy
Fund II, L.P., Chase Equity Associates, CIBC WG Argosy
Merchant Fund 2, L.L.C., Nomura Holding America, Inc. and
TSG Capital Fund II, L.P. and the shareholders of Lemmerz
Holding GmbH.
</TABLE>
2
<PAGE> 4
<TABLE>
<S> <C> <C>
(I) 10.27 Amended and Restated Credit Agreement, dated as of June 30, 1997, among the Company, the several
banks and financial institutions from time to time parties thereto. Canadian Imperial Bank of
Commerce, Merrill Lynch Capital Corporation and Dresdner Bank A.G.
(L) 10.28* Managing Director's Service Agreement, dated September 25, 1997, between Hayes Lemmerz Holding GmbH
and Klaus Junger.
(L) 12 Computation of Ratios.
(L) 22.1 Subsidiaries of the Company.
(L) 23 Consent of KPMG Peat Marwick LLP.
(G) 24 Powers of Attorney.
(L) 27 Financial Data Schedule.
(M) 28 Annual Report on Form 11-K with respect to the Company's Retirement Savings Plan for the year ended
December 31, 1997.
</TABLE>
- -------------------------
LEGEND FOR EXHIBITS
(A) Incorporated by reference from the Company's Registration Statement No.
33-53780 on Form S-1, filed with the SEC on October 27, 1992, as amended.
(B) Incorporated by reference from the Company's Annual Report on Form 10-K for
the fiscal Year Ended January 31, 1993, filed with the SEC.
(C) Incorporated by reference from the Company's Quarterly Report on Form 10-Q
for the quarter ended October 31, 1993, filed with the SEC.
(D) Incorporated by reference from the Company's Quarterly Report on Form 10-Q
for the quarter ended October 31, 1995, filed with the SEC.
(E) Incorporated by reference from the Company's Current Report on Form 8-K,
dated March 28, 1996, filed with the SEC.
(F) Incorporated by reference from the Company's Current Report on Form 8-K,
dated July 2, 1996, filed with the SEC.
(G) Incorporated by reference from the Company's Annual Report on Form 10-K for
the fiscal Year Ended January 31, 1997, filed with the SEC.
(H) Incorporated by reference from the Company's Current Report on Form 8-K,
dated June 6, 1997, filed with the SEC.
(I) Incorporated by reference from the Company's Current Report on Form 8-K,
dated June 30, 1997, filed with the SEC.
(J) Incorporated by reference from the Company's Registration Statement No.
333-34319 on Form S-4, filed with the SEC on August 24, 1997, as amended.
(K) Incorporated by reference from the Company's Registration Statement on Form
8-A, filed with the SEC on November 14, 1997.
(L) Incorporated by reference from the Company's Annual Report on Form 10-K for
the fiscal Year Ended January 31, 1998, filed with the SEC.
(M) Filed herewith.
* Denotes a compensatory plan, contract or arrangement.
The Company will furnish to any stockholder a copy of the above exhibits
upon the written request of such stockholder and the payment to the Company of
the reasonable expenses incurred by the Company in furnishing such copy.
(b) Reports on Form 8-K
The Company filed no Current Reports on Form 8-K with the SEC during the
quarter ended January 31, 1998.
3
<PAGE> 5
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this amendment to be signed on its behalf by the
undersigned, thereunto duly authorized, on the 14th day of July 1998.
HAYES LEMMERZ INTERNATIONAL, INC.
By: /s/ WILLIAM D. SHOVERS
------------------------------------
William D. Shovers
Vice President--Finance
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant in the capacities and on the dates indicated:
<TABLE>
<CAPTION>
SIGNATURE TITLE DATE
--------- ----- ----
<S> <C> <C>
/s/ RANKO CUCUZ* Chairman of the Board of Directors; July 14, 1998
- ------------------------------------------ Chief Executive Officer;
Ranko Cucuz Director
/s/ WILLIAM D. SHOVERS Chief Financial Officer July 14, 1998
- ------------------------------------------
William D. Shovers
/s/ D. N. VERMILYA Principal Accounting Officer July 14, 1998
- ------------------------------------------
D. N. Vermilya
/s/ CLEVELAND A. CHRISTOPHE* Director July 14, 1998
- ------------------------------------------
Cleveland A. Christophe
/s/ TIMOTHY J. CLARK* Director July 14, 1998
- ------------------------------------------
Timothy J. Clark
/s/ ANDREW R. HEYER* Director July 14, 1998
- ------------------------------------------
Andrew R. Heyer
/s/ HORST KUKWA-LEMMERZ* Director July 14, 1998
- ------------------------------------------
Horst Kukwa-Lemmerz
/s/ PAUL S. LEVY* Director July 14, 1998
- ------------------------------------------
Paul S. Levy
/s/ JEFFREY LIGHTCAP* Director July 14, 1998
- ------------------------------------------
Jeffrey Lightcap
/s/ WEINARD MEILICKE* Director July 14, 1998
- ------------------------------------------
Weinard Meilicke
/s/ JOHN S. RODEWIG* Director July 14, 1998
- ------------------------------------------
John S. Rodewig
/s/ DAVID YING* Director July 14, 1998
- ------------------------------------------
David Ying
*By /s/ PATRICK B. CAREY
- ------------------------------------
Patrick B. Carey
Attorney-in-fact
</TABLE>
4
<PAGE> 6
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT
NUMBER TITLE PAGE
- ------- ----- ----
<C> <S> <C>
28 Annual Report on Form 11-K with respect to the Registrant's
Retirement Savings Plan for the year ended December 31, 1997
</TABLE>
<PAGE> 1
EXHIBIT 28
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
(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, 1997.
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 1-11592
A. Full title of the plan and address of the plan, if different from that
of the issuer named below:
HAYES LEMMERZ INTERNATIONAL, INC.
RETIREMENT SAVINGS PLAN
B. Name of issuer of securities held pursuant to the plan and the address
of its principal executive office:
Hayes Lemmerz International, Inc.
38481 Huron River Drive
Romulus, Michigan 48174
<PAGE> 2
The following financial statements and exhibits are filed as part of this
report:
(a) Financial statements
(1) Independent Auditors' Report
(2) Statements of Net Assets Available for Plan Benefits, with Fund
Information, as of December 31, 1997 and 1996
(3) Statements of Changes in Net Assets Available for Plan Benefits
with Fund Information for the year ended December 31, 1997 and
1996
(4) Notes to Financial Statements
(b) Exhibit 23 -- Consent of Independent Auditors
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of
1934, this annual report has been duly signed on behalf of the Plan by the
undersigned, thereunto duly authorized.
HAYES LEMMERZ INTERNATIONAL, INC.
RETIREMENT SAVINGS PLAN
By: /s/ KURT M. SUCKOW
------------------------------------
Kurt M. Suckow
Plan Administrator
Date: July 14, 1998
<PAGE> 3
HAYES LEMMERZ INTERNATIONAL, INC.
RETIREMENT SAVINGS PLAN
(FORMERLY HAYES WHEELS INTERNATIONAL, INC. RETIREMENT SAVINGS PLAN)
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE(S)
-------
<S> <C>
Independent Auditors' Report................................ 2
Statement of Assets Available for Plan Benefits with Fund
Information as of December 31, 1997....................... 3-4
Statement of Assets Available for Plan Benefits with Fund
Information as of December 31, 1996....................... 5
Statement of Changes in Assets Available for Plan Benefits
with Fund Information for the year ended December 31,
1997...................................................... 6-7
Statement of Changes in Assets Available for Plan Benefits
with Fund Information for the year ended December 31,
1996...................................................... 8
Notes to Financial Statements............................... 9-13
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE
--------
<S> <C>
Item 27a -- Schedule of Assets Held for Investment Purposes
as of December 31, 1997................................... 1
Item 27d -- Schedule of Reportable Transactions for the year
ended December 31, 1997................................... 2
</TABLE>
All other schedules required to be filed in accordance with the Employee
Retirement Income Security Act of 1974 are not applicable and, accordingly, have
been omitted.
1
<PAGE> 4
INDEPENDENT AUDITORS' REPORT
To the Retirement Committee of the
Hayes Lemmerz International, Inc.
Retirement Savings Plan:
We have audited the accompanying statements of assets available for plan
benefits of Hayes Lemmerz International, Inc. Retirement Savings Plan (formerly
Hayes Wheels International, Inc. Retirement Savings Plan) as of December 31,
1997 and 1996, and the related statements of changes in assets available for
plan benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the assets available for plan benefits as of December
31, 1997 and 1996, and the changes in assets available for plan benefits for the
years then ended, 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 as
listed in the accompanying table of contents 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 assets available for plan benefits and the statements of changes in assets
available for plan benefits is presented for purposes of additional analysis
rather than to present the assets available for plan benefits and changes in
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.
The schedule of assets held for investment purposes that accompanies the
Plan's financial statements does not disclose the historical cost of certain
plan assets held by the Plan trustee. Disclosure of this information is required
by the Department of Labor's Rules and Regulations for Reporting and Disclosure
under the Employee Retirement Income Security Act of 1974.
/s/ KPMG Peat Marwick LLP
Detroit, Michigan
July 7, 1998
2
<PAGE> 5
HAYES LEMMERZ INTERNATIONAL, INC.
RETIREMENT SAVINGS PLAN
(FORMERLY HAYES WHEELS INTERNATIONAL, INC. RETIREMENT SAVINGS PLAN)
STATEMENT OF ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
DECEMBER 31, 1997
<TABLE>
<CAPTION>
STRATEGIC STRATEGIC
INTERNATIONAL LONG-TERM ULTRA EQUITY CAPITAL ALLOCATION ALLOCATION
GROWTH BOND INVESTORS INDEX PRESERVATION FUND: FUND:
FUND FUND FUND FUND TRUST CONSERVATIVE MODERATE
------------- --------- --------- ------ ------------ ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets:
Cash............................. $ -- $ -- $ -- $ -- $ -- $ -- $ --
Investments, at fair value:
American Century International
Growth Fund.................. 5,145,484 -- -- -- -- -- --
American Century Long-Term Bond
Fund......................... -- 2,099,396 -- -- -- -- --
American Century Ultra
Investors Fund............... -- -- 17,410,799 -- -- -- --
American Century Equity Index
Fund......................... -- -- -- 4,322 -- -- --
American Century Strategic
Allocation Fund:
Conservative................. -- -- -- -- -- 182,736 --
American Century Strategic
Allocation Fund: Moderate.... -- -- -- -- -- -- 5,671,751
American Century Strategic
Allocation Fund:
Aggressive................... -- -- -- -- -- -- --
American Century Equity Income
Fund......................... -- -- -- -- -- -- --
American Century Value Fund.... -- -- -- -- -- -- --
Vanguard Index Trust -- 500
Portfolio.................... -- -- -- -- -- -- --
Stable Asset Fund.............. -- -- -- -- -- -- --
Hayes Lemmerz International,
Inc. common stock............ -- -- -- -- -- -- --
Comerica Short-Term Fund....... -- -- -- -- -- -- --
Comerica Core Growth Stock
Equity Fund.................. -- -- -- -- -- -- --
Loans to participants.......... -- -- -- -- -- -- --
---------- ---------- ----------- ------ ---- -------- ----------
5,145,484 2,099,396 17,410,799 4,322 -- 182,736 5,671,751
Investments, at contract value:
Bankers Trust Capital
Preservation Trust........... -- -- -- -- 431 -- --
Comerica GIC Fund.............. -- -- -- -- -- -- --
---------- ---------- ----------- ------ ---- -------- ----------
Total investments......... 5,145,484 2,099,396 17,410,799 4,322 431 182,736 5,671,751
Contributions receivable:
Employer....................... 48,759 15,877 112,846 -- -- 3,528 35,552
Employee....................... 28,528 9,643 77,832 -- -- 1,550 24,051
Other............................ -- -- -- -- -- -- --
Interfund receivable (payable)... -- -- -- -- -- -- --
---------- ---------- ----------- ------ ---- -------- ----------
Assets available for plan
benefits................ $5,222,771 $2,124,916 $17,601,477 $4,322 $431 $187,814 $5,731,354
========== ========== =========== ====== ==== ======== ==========
<CAPTION>
STRATEGIC
ALLOCATION EQUITY
FUND: INCOME
AGGRESSIVE FUND
---------- ------
<S> <C> <C>
Assets:
Cash............................. $ -- $ --
Investments, at fair value:
American Century International
Growth Fund.................. -- --
American Century Long-Term Bond
Fund......................... -- --
American Century Ultra
Investors Fund............... -- --
American Century Equity Index
Fund......................... -- --
American Century Strategic
Allocation Fund:
Conservative................. -- --
American Century Strategic
Allocation Fund: Moderate.... -- --
American Century Strategic
Allocation Fund:
Aggressive................... 535,632 --
American Century Equity Income
Fund......................... -- 1,734,679
American Century Value Fund.... -- --
Vanguard Index Trust -- 500
Portfolio.................... -- --
Stable Asset Fund.............. -- --
Hayes Lemmerz International,
Inc. common stock............ -- --
Comerica Short-Term Fund....... -- --
Comerica Core Growth Stock
Equity Fund.................. -- --
Loans to participants.......... -- --
-------- ----------
535,632 1,734,679
Investments, at contract value:
Bankers Trust Capital
Preservation Trust........... -- --
Comerica GIC Fund.............. -- --
-------- ----------
Total investments......... 535,632 1,734,679
Contributions receivable:
Employer....................... 19,341 23,200
Employee....................... 8,198 11,789
Other............................ -- --
Interfund receivable (payable)... -- --
-------- ----------
Assets available for plan
benefits................ $563,171 $1,769,668
======== ==========
</TABLE>
See accompanying notes to financial statements
3
<PAGE> 6
Continued from preceding page
<TABLE>
<CAPTION>
HAYES
STABLE LEMMERZ SHORT-TERM
VALUE INDEX 500 ASSET STOCK GIC GOVERNMENT
FUND FUND FUND FUND FUND FUND
----- --------- ------ ------- ---- ----------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Cash............................................. $ -- $ -- $ -- $ 3,320 $ -- $ 1,109
Investments, at fair value:
American Century International Growth Fund..... -- -- -- -- -- --
American Century Long-Term Bond Fund........... -- -- -- -- -- --
American Century Ultra Investors Fund.......... -- -- -- -- -- --
American Century Equity Index Fund............. -- -- -- -- -- --
American Century Strategic Allocation Fund:
Conservative................................. -- -- -- -- -- --
American Century Strategic Allocation Fund:
Moderate..................................... -- -- -- -- -- --
American Century Strategic Allocation Fund:
Aggressive................................... -- -- -- -- -- --
American Century Equity Income Fund............ -- -- -- -- -- --
American Century Value Fund.................... 2,338,324 -- -- -- -- --
Vanguard Index Trust -- 500 Portfolio.......... -- 17,931,900 -- -- -- --
Stable Asset Fund.............................. -- -- 21,369,049 -- -- --
Hayes Lemmerz International, Inc. common
stock........................................ -- -- -- 3,739,768 -- --
Comerica Short-Term Fund....................... -- -- -- -- 1,040,749 245,406
Comerica Core Growth Stock Equity Fund......... -- -- -- -- -- --
Loans to participants.......................... -- -- -- -- -- --
---------- ----------- ----------- ---------- ---------- --------
2,338,324 17,931,900 21,369,049 3,739,768 1,040,749 245,406
Investments, at contract value:
Bankers Trust Capital Preservation Trust....... -- -- -- -- -- --
Comerica GIC Fund.............................. -- -- -- -- 5,371 --
---------- ----------- ----------- ---------- ---------- --------
Total investments......................... 2,338,324 17,931,900 21,369,049 3,739,768 1,046,120 245,406
Contributions receivable:
Employer....................................... 31,591 134,680 213,136 62,401 -- --
Employee....................................... 15,187 70,370 48,325 26,730 -- --
Other............................................ -- -- -- 4,931 -- (2,567)
Interfund receivable (payable)................... -- -- -- (676) (170) (102)
---------- ----------- ----------- ---------- ---------- --------
Assets available for plan benefits........ $2,385,102 $18,136,950 $21,630,510 $3,836,474 $1,045,950 $243,846
========== =========== =========== ========== ========== ========
<CAPTION>
EQUITY LOAN
FUND FUND TOTAL
------ ---- -----
<S> <C> <C> <C>
Assets:
Cash............................................. $ 33,263 $ -- $ (154,266)
Investments, at fair value:
American Century International Growth Fund..... -- -- 5,145,484
American Century Long-Term Bond Fund........... -- -- 2,099,396
American Century Ultra Investors Fund.......... -- -- 17,410,799
American Century Equity Index Fund............. -- -- 4,322
American Century Strategic Allocation Fund:
Conservative................................. -- -- 182,736
American Century Strategic Allocation Fund:
Moderate..................................... -- -- 5,671,751
American Century Strategic Allocation Fund:
Aggressive................................... -- -- 535,632
American Century Equity Income Fund............ -- -- 1,734,679
American Century Value Fund.................... -- -- 2,338,324
Vanguard Index Trust -- 500 Portfolio.......... -- -- 17,931,900
Stable Asset Fund.............................. -- -- 21,369,049
Hayes Lemmerz International, Inc. common
stock........................................ -- -- 3,739,768
Comerica Short-Term Fund....................... 1,288,008 -- 2,766,121
Comerica Core Growth Stock Equity Fund......... 1,228 -- 1,228
Loans to participants.......................... -- 3,079,752 3,079,752
---------- ---------- -----------
1,289,236 3,079,752 84,010,941
Investments, at contract value:
Bankers Trust Capital Preservation Trust....... -- -- 431
Comerica GIC Fund.............................. -- -- 5,371
---------- ---------- -----------
Total investments......................... 1,289,236 3,079,752 84,016,743
Contributions receivable:
Employer....................................... -- -- 700,911
Employee....................................... -- -- 322,203
Other............................................ 11,014 -- 13,378
Interfund receivable (payable)................... 948 -- --
---------- ---------- -----------
Assets available for plan benefits........ $1,334,461 $3,079,752 $84,898,969
========== ========== ===========
</TABLE>
4
<PAGE> 7
HAYES LEMMERZ INTERNATIONAL, INC.
RETIREMENT SAVINGS PLAN
(FORMERLY HAYES WHEELS INTERNATIONAL, INC. RETIREMENT SAVINGS PLAN)
STATEMENT OF ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
DECEMBER 31, 1996
<TABLE>
<CAPTION>
INTERNATIONAL BALANCED ULTRA
GROWTH INVESTORS LONG-TERM INVESTORS EQUITY
FUND FUND BOND FUND FUND INDEX FUND
------------- --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C>
Assets:
Investments, at fair value:
American Century International Growth Fund...... $ 977,105 $ -- $ -- $ -- $ --
American Century Balanced Investors Fund........ -- 1,025,960 -- -- --
American Century Long-Term Bond Fund............ -- -- 275,197 -- --
American Century Ultra Investors Fund........... -- -- -- 2,961,660 --
American Century Equity Index Fund.............. -- -- -- -- 1,116,859
Chase Manhattan Bank Trust for Employee Benefit
Plans II Cash Investment Fund................. -- -- -- -- --
Hayes Wheels International, Inc. common stock... -- -- -- -- --
Loans to participants........................... -- -- -- -- --
---------- ---------- -------- ---------- ----------
977,105 1,025,960 275,197 2,961,660 1,116,859
Investment, at contract value:
Bankers Trust Capital Preservation Trust........ -- -- -- -- --
---------- ---------- -------- ---------- ----------
Total investments.......................... 977,105 1,025,960 275,197 2,961,660 1,116,859
Contributions receivable:
Employer........................................ 52,445 41,716 14,700 132,863 62,657
Employee........................................ 13,370 15,797 3,756 38,571 16,271
Accrued income.................................... -- -- -- -- --
Interfund receivable (payable).................... 701 1,155 401 4,480 464
---------- ---------- -------- ---------- ----------
Assets available for plan benefits......... $1,043,621 $1,084,628 $294,054 $3,137,574 $1,196,251
========== ========== ======== ========== ==========
<CAPTION>
HAYES
CAPITAL WHEELS
PRESERVATION STOCK LOAN
TRUST FUND FUND TOTAL
------------ ------ ---- -----
<S> <C> <C> <C> <C>
Assets:
Investments, at fair value:
American Century International Growth Fund...... $ -- $ -- $ -- $ 977,105
American Century Balanced Investors Fund........ -- -- -- 1,025,960
American Century Long-Term Bond Fund............ -- -- -- 275,197
American Century Ultra Investors Fund........... -- -- -- 2,961,660
American Century Equity Index Fund.............. -- -- -- 1,116,859
Chase Manhattan Bank Trust for Employee Benefit
Plans II Cash Investment Fund................. -- 535 -- 535
Hayes Wheels International, Inc. common stock... -- 320,435 -- 320,435
Loans to participants........................... -- -- 170,387 170,387
---------- -------- -------- ----------
-- 320,970 170,387 6,848,138
Investment, at contract value:
Bankers Trust Capital Preservation Trust........ 1,205,932 -- -- 1,205,932
---------- -------- -------- ----------
Total investments.......................... 1,205,932 320,970 170,387 8,054,070
Contributions receivable:
Employer........................................ 182,258 50,200 -- 536,839
Employee........................................ 7,571 8,962 -- 104,298
Accrued income.................................... -- 13 -- 13
Interfund receivable (payable).................... 608 7,848 (15,657) --
---------- -------- -------- ----------
Assets available for plan benefits......... $1,396,369 $387,993 $154,730 $8,695,220
========== ======== ======== ==========
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 8
HAYES LEMMERZ INTERNATIONAL, INC.
RETIREMENT SAVINGS PLAN
(FORMERLY HAYES WHEELS INTERNATIONAL, INC. RETIREMENT SAVINGS PLAN)
STATEMENT OF CHANGES IN ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
DECEMBER 31, 1997
<TABLE>
<CAPTION>
INTERNATIONAL BALANCED LONG-TERM ULTRA EQUITY CAPITAL
GROWTH INVESTORS BOND INVESTORS INDEX PRESERVATION
FUND FUND FUND FUND FUND TRUST
------------- --------- --------- --------- ------ ------------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Investment income:
Interest and dividends......... $ 704,837 $ 10,697 $ 37,924 $ 3,552,448 $ -- $ 71,972
Net realized and unrealized
appreciation (depreciation)
in fair value of
investments.................. (417,331) 99,831 (10,198) (2,701,471) 275,957 --
---------- ---------- ---------- ----------- ----------- -----------
Total investment income... 287,506 110,528 27,726 850,977 275,957 71,972
---------- ---------- ---------- ----------- ----------- -----------
Contributions:
Employer....................... 221,266 94,678 60,841 557,664 115,598 546,640
Employee....................... 267,356 141,366 70,588 697,526 144,499 152,316
Rollover....................... 29,556 18,377 -- 22,392 34,266 65,970
---------- ---------- ---------- ----------- ----------- -----------
Total contributions....... 518,178 254,421 131,429 1,277,582 294,363 764,926
---------- ---------- ---------- ----------- ----------- -----------
Total additions........... 805,684 364,949 159,155 2,128,559 570,320 836,898
---------- ---------- ---------- ----------- ----------- -----------
Deductions:
Benefit payments................. 125,505 23,577 10,272 241,957 38,627 170,625
Other............................ 83,976 14,032 32,738 260,514 45,476 1,689
---------- ---------- ---------- ----------- ----------- -----------
Total deductions.......... 209,481 37,609 43,010 502,471 84,103 172,314
Transfers in from merged plans
(note 1)......................... 3,589,390 -- 1,628,049 13,183,829 7,346 --
Net transfers (to) from other
funds............................ (6,443) (1,411,968) 86,668 (346,014) (1,685,492) (2,060,522)
---------- ---------- ---------- ----------- ----------- -----------
Net increase (decrease)... 4,179,150 (1,084,628) 1,830,862 14,463,903 (1,191,929) (1,395,938)
Assets available for plan benefits:
Beginning of year................ 1,043,621 1,084,628 294,054 3,137,574 1,196,251 1,396,369
---------- ---------- ---------- ----------- ----------- -----------
End of year...................... $5,222,771 $ -- $2,124,916 $17,601,477 $ 4,322 $ 431
========== ========== ========== =========== =========== ===========
<CAPTION>
STRATEGIC STRATEGIC STRATEGIC
ALLOCATION ALLOCATION ALLOCATION EQUITY
FUND: FUND: FUND: INCOME
CONSERVATIVE MODERATE AGGRESSIVE FUND
------------ ---------- ---------- ------
<S> <C> <C> <C> <C>
Additions:
Investment income:
Interest and dividends......... $ 8,677 $ 218,993 $ 25,126 $ 259,162
Net realized and unrealized
appreciation (depreciation)
in fair value of
investments.................. (6,859) (71,921) (14,891) (188,383)
-------- ---------- -------- ----------
Total investment income... 1,818 147,072 10,235 70,779
-------- ---------- -------- ----------
Contributions:
Employer....................... 3,736 138,237 24,320 28,845
Employee....................... 2,660 159,391 24,551 26,411
Rollover....................... 2,208 13,242 2,208 5,705
-------- ---------- -------- ----------
Total contributions....... 8,604 310,870 51,079 60,961
-------- ---------- -------- ----------
Total additions........... 10,422 457,942 61,314 131,740
-------- ---------- -------- ----------
Deductions:
Benefit payments................. 600 77,488 493 4,734
Other............................ 1,678 113,418 8,048 15,108
-------- ---------- -------- ----------
Total deductions.......... 2,278 190,906 8,541 19,842
Transfers in from merged plans
(note 1)......................... 198,999 4,098,927 453,114 1,479,659
Net transfers (to) from other
funds............................ (19,329) 1,365,391 57,284 178,111
-------- ---------- -------- ----------
Net increase (decrease)... 187,814 5,731,354 563,171 1,769,668
Assets available for plan benefits:
Beginning of year................ -- -- -- --
-------- ---------- -------- ----------
End of year...................... $187,814 $5,731,354 $563,171 $1,769,668
======== ========== ======== ==========
</TABLE>
See accompanying notes to financial statements
6
<PAGE> 9
Continued from preceding page
<TABLE>
<CAPTION>
HAYES
LEMMERZ SHORT-TERM
VALUE INDEX 500 STABLE ASSET STOCK GIC GOVERNMENT
FUND FUND FUND FUND FUND FUND
----- --------- ------------ ------- ---- ----------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Investment income:
Interest and dividends.................... $ 345,506 $ 8,346 $ 168,129 $ 871 $ -- $ --
Net realized and unrealized appreciation
(depreciation) in fair value of
investments............................. (268,555) 768,015 -- (392,940) -- --
---------- ----------- ----------- ---------- ---------- --------
Total investment income.............. 76,951 776,361 168,129 (392,069) -- --
---------- ----------- ----------- ---------- ---------- --------
Contributions:
Employer.................................. 44,118 265,353 558,717 286,955 -- --
Employee.................................. 38,558 244,698 38,571 259,112 -- --
Rollover.................................. 19,677 16,942 -- 23,291 -- --
---------- ----------- ----------- ---------- ---------- --------
Total contributions.................. 102,353 526,993 597,288 569,358 -- --
---------- ----------- ----------- ---------- ---------- --------
Total additions...................... 179,304 1,303,354 765,417 177,289 -- --
---------- ----------- ----------- ---------- ---------- --------
Deductions:
Benefit payments............................ 2,718 68,123 158,795 39,441 -- --
Other....................................... 19,771 180,251 31,402 79,464 -- --
---------- ----------- ----------- ---------- ---------- --------
Total deductions..................... 22,489 248,374 190,197 118,905 -- --
Transfer in from merging plans (note 1)....... 1,773,147 15,063,510 20,730,860 2,935,618 1,045,950 243,846
Net transfers (to) from other funds........... 455,140 2,018,460 324,430 454,479 -- --
---------- ----------- ----------- ---------- ---------- --------
Net increase (decrease).............. 2,385,102 18,136,950 21,630,510 3,448,481 1,045,950 243,846
Assets available for plan benefits:
Beginning of year........................... -- -- -- 387,993 -- --
---------- ----------- ----------- ---------- ---------- --------
End of year................................. $2,385,102 $18,136,950 $21,630,510 $3,836,474 $1,045,950 $243,846
========== =========== =========== ========== ========== ========
<CAPTION>
EQUITY LOAN
FUND FUND TOTAL
------ ---- -----
<S> <C> <C> <C>
Additions:
Investment income:
Interest and dividends.................... $ $ 18,470 $ 5,431,158
Net realized and unrealized appreciation
(depreciation) in fair value of
investments............................. -- -- (2,928,746)
---------- ---------- -----------
Total investment income.............. -- 18,470 2,502,412
---------- ---------- -----------
Contributions:
Employer.................................. -- -- 2,946,968
Employee.................................. -- -- 2,267,603
Rollover.................................. -- -- 253,834
---------- ---------- -----------
Total contributions.................. -- -- 5,468,405
---------- ---------- -----------
Total additions...................... -- 18,470 7,970,817
---------- ---------- -----------
Deductions:
Benefit payments............................ -- 16,007 978,962
Other....................................... -- 177,322 1,064,887
---------- ---------- -----------
Total deductions..................... -- 193,329 2,043,849
Transfer in from merging plans (note 1)....... 1,334,461 2,510,076 70,276,781
Net transfers (to) from other funds........... -- 589,805 --
---------- ---------- -----------
Net increase (decrease).............. 1,334,461 2,925,022 76,203,749
Assets available for plan benefits:
Beginning of year........................... -- 154,730 8,695,220
---------- ---------- -----------
End of year................................. $1,334,461 $3,079,752 $84,898,969
========== ========== ===========
</TABLE>
7
<PAGE> 10
HAYES LEMMERZ INTERNATIONAL, INC.
RETIREMENT SAVINGS PLAN
(FORMERLY HAYES WHEELS INTERNATIONAL, INC. RETIREMENT SAVINGS PLAN)
STATEMENT OF CHANGES IN ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
DECEMBER 31, 1996
<TABLE>
<CAPTION>
INTERNATIONAL BALANCED LONG-TERM ULTRA EQUITY CAPITAL
GROWTH INVESTORS BOND INVESTORS INDEX PRESERVATION
FUND FUND FUND FUND FUND TRUST
------------- --------- --------- --------- ------ ------------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Investment income:
Interest and dividends...................... $ 99,103 $ 102,758 $ 17,108 $ 171,660 $ -- $ 50,925
Net realized and unrealized appreciation
(depreciation) in fair value of
investments............................... 17,358 11,299 (8,363) 166,149 196,818 149
---------- ---------- -------- ---------- ---------- ----------
Total investment income................... 116,461 114,057 8,745 337,809 196,818 51,074
---------- ---------- -------- ---------- ---------- ----------
Contributions:
Employer.................................... 131,791 114,832 36,901 343,844 152,971 308,571
Employee.................................... 171,273 178,011 37,861 481,063 188,429 97,308
Rollover.................................... 8,742 6,284 13,494 16,882 4,668 75,811
---------- ---------- -------- ---------- ---------- ----------
Total contributions....................... 311,806 299,127 88,256 841,789 346,068 481,690
---------- ---------- -------- ---------- ---------- ----------
Total additions........................... 428,267 413,184 97,001 1,179,598 542,886 532,764
---------- ---------- -------- ---------- ---------- ----------
Deductions:
Benefit payments.............................. 99,015 111,388 25,449 385,528 184,605 129,663
Other......................................... 6,689 5,586 1,501 17,877 6,004 5,019
---------- ---------- -------- ---------- ---------- ----------
Total deductions.......................... 105,704 116,974 26,950 403,405 190,609 134,682
---------- ---------- -------- ---------- ---------- ----------
Net transfers (to) from other funds and plans... 57,837 8,186 45,307 347,798 70,081 229,014
---------- ---------- -------- ---------- ---------- ----------
Net increase (decrease)................... 380,400 304,396 115,358 1,123,991 422,358 627,096
Assets available for plan benefits:
Beginning of year............................. 663,221 780,232 178,696 2,013,583 773,893 769,273
---------- ---------- -------- ---------- ---------- ----------
End of year................................... $1,043,621 $1,084,628 $294,054 $3,137,574 $1,196,251 $1,396,369
========== ========== ======== ========== ========== ==========
<CAPTION>
HAYES
WHEELS
STOCK LOAN
FUND FUND TOTAL
------ ---- -----
<S> <C> <C> <C>
Additions:
Investment income:
Interest and dividends...................... $ 2,571 $ 8,808 $ 452,933
Net realized and unrealized appreciation
(depreciation) in fair value of
investments............................... 196,002 -- 579,412
--------- --------- ----------
Total investment income................... 198,573 8,808 1,032,345
--------- --------- ----------
Contributions:
Employer.................................... 117,923 -- 1,206,833
Employee.................................... 139,869 -- 1,293,814
Rollover.................................... 17,119 -- 143,000
--------- --------- ----------
Total contributions....................... 274,911 2,643,647
--------- --------- ----------
Total additions........................... 473,484 8,808 3,675,992
--------- --------- ----------
Deductions:
Benefit payments.............................. 14,731 20,737 971,116
Other......................................... 1,841 -- 44,517
--------- --------- ----------
Total deductions.......................... 16,572 20,737 1,015,633
--------- --------- ----------
Net transfers (to) from other funds and plans... (638,043) 54,394 174,574
--------- --------- ----------
Net increase (decrease)................... (181,131) 42,465 2,834,933
Assets available for plan benefits:
Beginning of year............................. 569,124 112,265 5,860,287
--------- --------- ----------
End of year................................... $ 387,993 $ 154,730 $8,695,220
========= ========= ==========
</TABLE>
See accompanying notes to financial statements
8
<PAGE> 11
HAYES LEMMERZ INTERNATIONAL, INC.
RETIREMENT SAVINGS PLAN
(FORMERLY HAYES WHEELS INTERNATIONAL, INC. RETIREMENT SAVINGS PLAN)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 AND 1996
(1) DESCRIPTION OF THE PLAN
The Hayes Lemmerz International, Inc. Retirement Savings Plan (formerly
Hayes Wheels International, Inc. Retirement Savings Plan) (the Plan) was
established effective January 1, 1993. The Plan is a contributory,
defined-contribution plan designed to provide eligible salaried employees of a
participating plant, division, or subsidiary of Hayes Lemmerz International,
Inc. (the Company), with a vehicle to systematically save funds for retirement.
The Plan is subject to the provisions of the Employee Retirement Income Security
Act of 1974 (ERISA).
Employees of the following facilities are eligible to participate in the
plan: LaMirada, California; Howell, Michigan; Huntington, Indiana (effective May
1, 1996); Gainsville, Georgia (effective October 1, 1996); Dallas, Texas
(effective January 1, 1997); and Romulus, Michigan.
Effective December 31, 1997, Hayes Lemmerz International, Inc. Savings Plan
for Represented Employees, Hayes Lemmerz International, Inc. Employee Savings
Plan, and Motor Wheel Corporation Employee Retirement Savings Plan (merged
plans) were merged into the Plan. All assets were transferred to the Plan as of
the merger date.
The following is a brief description of the Plan. Participants should refer
to the plan agreement for more complete information.
ELIGIBILITY
Salaried employees not covered under a Company-sponsored pension plan are
eligible to participate in the Plan. An employee is eligible on the first day of
the month following 30 days of full-time employment.
PARTICIPANT CONTRIBUTIONS
A participant may elect to make a basic deferred contribution of between 2
percent and 15 percent of the participant's compensation subject to certain
limitations. The participants may elect the percentage of the participant's
contribution to be allocated to each investment fund.
EMPLOYER CONTRIBUTION
Employer contributions consist of matching contributions and retirement
contributions. The matching contribution is 50 percent of the first 2 percent of
the participant's compensation contributed and 25 percent of the next 4 percent
of the participant's compensation contributed. The Company makes a retirement
contribution quarterly to each nonbargaining member actively employed as of the
last day of a calendar quarter. The retirement contribution equals 5 percent of
compensation until the participant's year-to-date compensation reaches the
Social Security taxable wage base. After reaching the taxable wage base, the
contribution equals 8 percent of compensation. The participants may elect the
percentage of the employer contribution to be allocated to each investment fund.
9
<PAGE> 12
HAYES LEMMERZ INTERNATIONAL, INC.
RETIREMENT SAVINGS PLAN
(FORMERLY HAYES WHEELS INTERNATIONAL, INC. RETIREMENT SAVINGS PLAN)
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
DECEMBER 31, 1997 AND 1996
(1) DESCRIPTION OF THE PLAN -- CONTINUED
VESTING
Participants are fully vested in their basic contributions at all times.
Vesting of the employer matching and retirement contributions is based on years
of eligible service as follows:
<TABLE>
<CAPTION>
YEARS OF ELIGIBLE PERCENTAGE
SERVICE VESTED
----------------- ----------
<S> <C>
Less than 1................................................. 0%
1 but less than 2........................................... 25
2 but less than 3........................................... 50
3 but less than 4........................................... 75
4 or more................................................... 100
</TABLE>
FORFEITURES
Nonvested employer contributions of terminated employees become forfeitures
after a one-year break in service -- unless the nonvested balance is greater
than $3,500, in which case they would become a forfeiture after a five-year
break in service -- and are used to reduce future employer contributions.
PARTICIPANT ACCOUNTS
Each participant's account is credited with the participant's contribution,
the employer's contribution, and an allocation of plan earnings. Allocations are
computed at the end of each calendar quarter based on the participant's account
balance.
Upon retirement, disability, or death, the entire balance of the
participant's account becomes payable to the participant or the participant's
beneficiary. Upon any other termination of employment, the participant receives
the vested portion of their account. Withdrawals are also permitted for
financial hardship or upon attainment of age 59 1/2 under certain provisions of
the Plan. All benefits are payable in lump sum.
Participants may borrow up to the lesser of $50,000 or 50 percent of the
vested portion of their account. When a loan is made, the participants'
investment fund(s) assets are decreased on a pro-rata basis and the loan
receivable is reflected in the Loan Fund. Loan repayments are redeposited into
the participants' accounts based on current election directives. Loans must be
repaid within 5 years and bear interest at market rates.
ADMINISTRATIVE EXPENSES
The Company pays all administrative expenses associated with the Plan.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The accompanying financial statements are presented on the accrual basis of
accounting such that all income, benefits, and expenses are recognized in the
period to which they relate.
10
<PAGE> 13
HAYES LEMMERZ INTERNATIONAL, INC.
RETIREMENT SAVINGS PLAN
(FORMERLY HAYES WHEELS INTERNATIONAL, INC. RETIREMENT SAVINGS PLAN)
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
DECEMBER 31, 1997 AND 1996
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -- CONTINUED
VALUATION OF INVESTMENTS
Investments in all common collective trust funds, except the Capital
Preservation Trust and Comerica GIC Fund, are stated at their aggregate fair
value based upon quoted market prices of the underlying investments within the
funds. Unrealized and realized gains or losses are reflected currently in the
statement of changes in net assets available for plan benefits. Purchases and
sales of fund units or securities are recorded on a trade-date basis.
The Plan's Capital Preservation Fund and GIC Fund are valued at the
aggregate contract values of the GICs held by the funds, as the funds investment
is fully benefit responsive. Contract value represents contributions made under
the contract, plus interest at the contract rate, less funds used to pay
benefits under the Plan.
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 revenues and expenses during the
reporting period. Actual results could differ from those estimates.
11
<PAGE> 14
HAYES LEMMERZ INTERNATIONAL, INC.
RETIREMENT SAVINGS PLAN
(FORMERLY HAYES WHEELS INTERNATIONAL, INC. RETIREMENT SAVINGS PLAN)
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
DECEMBER 31, 1997 AND 1996
(3) INVESTMENT FUNDS
Participants direct their accounts to be invested in various investment
funds. American Century maintains the following funds under the Plan:
<TABLE>
<CAPTION>
FUND DESCRIPTION
---- -----------
<S> <C>
Balanced Investors Fund Seeks capital growth and current income by investing
approximately 60 percent of its assets in growth stocks and
the remainder in fixed-income securities
International Growth Fund Seeks capital growth over time by investing in common stocks
of a broad range of foreign companies
Long-Term Bond Fund Seeks to provide a high level of income by investing in a
diversified portfolio of longer-term corporate, government,
and mortgage-backed bonds
Ultra Investors Fund Seeks capital growth over time by investing in common stocks
considered by management to have better-than-average
prospects for appreciation, typically small to medium-size
companies
Equity Index Fund Seeks long-term capital appreciation. The fund invests
primarily in Wells Fargo's Equity Index Fund E, a highly
diversified portfolio consisting of stocks included in the
Standard & Poor's 500 Composite Stock Price Index
Capital Preservation Trust A stable value income fund in which the participants'
principal is protected from market volatility. Invests
exclusively in the BT Pyramid GIC Fund, a diversified pool
of high-quality fixed-income securities, and attempts to
provide investors with yields that are higher than money
market funds and CDs
Strategic Allocation Fund: Seeks high level of capital appreciation and income through
Conservative investments in bonds (45%), stocks (40%), and money market
securities (15%)
Strategic Allocation Fund: Moderate Seeks high level of capital appreciation and income through
investments in stocks (60%), bonds (30%), and money market
securities (10%)
Strategic Allocation Fund: Aggressive Seeks high level of capital appreciation and income with
portfolio of stocks (75%), bonds (20%), and money market
securities (5%)
Equity Income Fund Seeks current income with capital appreciation to exceed the
yield of securities comprising the S&P 500 Composite Index
Value Fund Seeks long-term capital growth through investment in stocks
Index 500 Fund Seeks current income with capital appreciation to exceed the
yield of securities comprising the S&P 500 Composite Index
Stable Asset Fund Seeks to protect principal from market volatility with
yields higher than money market funds. Invests in Benham
Presentation Fund and Benham Stable Asset Fund
Hayes Lemmerz Stock Fund Invests primarily in the common stock of the Company
Loan Fund Participant loans are maintained within this fund
</TABLE>
12
<PAGE> 15
HAYES LEMMERZ INTERNATIONAL, INC.
RETIREMENT SAVINGS PLAN
(FORMERLY HAYES WHEELS INTERNATIONAL, INC. RETIREMENT SAVINGS PLAN)
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
DECEMBER 31, 1997 AND 1996
(3) INVESTMENT FUNDS -- CONTINUED
Assets held by Comerica Bank are held in the following funds under the
Plan:
<TABLE>
<CAPTION>
FUND DESCRIPTION
---- -----------
<S> <C>
GIC Fund............................... Invests in high-quality investment contracts issued by
selected insurance companies and banks
Short-Term Government Fund............. Short-term fixed-income fund that invests only in U.S.
Treasury obligations and in repurchase agreements
collecteralized by U.S. Treasury obligations
Equity Fund............................ Invests in the common stocks of high-quality companies
with consistent and superior earnings-per-share growth
</TABLE>
(4) TAX STATUS
The Internal Revenue Service, in a letter dated July 22, 1996, determined
that the Plan meets the requirements of section 401(a) of the Internal Revenue
Code (IRC) and is exempt from federal income tax under section 501(a) of the
Code. The Plan has been amended since receiving the determination letter,
however, the Plan administrator believes the Plan is designed and is currently
being operated in compliance with the applicable requirements of the IRC.
(5) TERMINATION OF THE PLAN
The Company has reserved the right to terminate or amend the Plan at any
time. In the event of complete or partial termination of the Plan, participants
become 100 percent vested in their accounts and the balance in the participant's
account will be distributed at the discretion of the committee which administers
the Plan.
(6) RELATED PARTY TRANSACTIONS
American Century serves as the Plan's recordkeeper and trustee. The Plan
has invested $35,123,123 and $6,356,781 of assets in American Century-sponsored
funds at December 31, 1997 and 1996, respectively.
Comerica Bank serves as trustee for the Hayes Lemmerz International, Inc.
Savings Plan for Represented Employees, one of the merged plans. The Plan has
invested $2,772,720 of assets in Comerica Bank-sponsored funds at December 31,
1997.
13
<PAGE> 16
SCHEDULE 1
HAYES LEMMERZ INTERNATIONAL, INC.
RETIREMENT SAVINGS PLAN
(FORMERLY HAYES WHEELS INTERNATIONAL, INC. RETIREMENT SAVINGS PLAN)
ITEM 27A -- SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1997
<TABLE>
<CAPTION>
DESCRIPTION OF
INVESTMENT, INCLUDING
MATURITY DATE, RATE OF
IDENTITY OF ISSUE, BORROWER, INTEREST, COLLATERAL, PAR
LESSOR, OR SIMILAR PARTY OR MATURITY VALUE CURRENT VALUE
---------------------------- ------------------------- -------------
<S> <C> <C>
American Century* International Growth Fund 5,145,484
American Century* Long-Term Bond Fund 2,099,396
American Century* Ultra Investors Fund 17,410,799
American Century* Equity Index Fund 4,322
American Century* Strategic Allocation Fund: Conservative 182,736
American Century* Strategic Allocation Fund: Moderate 5,671,751
American Century* Strategic Allocation Fund: Aggressive 535,632
American Century* Equity Income Fund 1,734,679
American Century* Value Fund 2,338,324
Vanguard Index Trust -- 500 Portfolio 17,931,900
American Century* Stable Asset Fund 21,369,049
Hayes Lemmerz International, Inc.* Common Stock 3,739,768
Comerica Bank* Short Term Fund 2,766,121
Comerica Bank* Core Growth Stock Equity Fund 1,228
Plan Participants Participant Loans 3,079,752
----------
84,010,941
==========
</TABLE>
- -------------------------
* Denotes a party-in-interest
<PAGE> 17
SCHEDULE 2
HAYES LEMMERZ INTERNATIONAL, INC.
RETIREMENT SAVINGS PLAN
(FORMERLY HAYES WHEELS INTERNATIONAL, INC. RETIREMENT SAVINGS PLAN)
ITEM 27d -- SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
CURRENT VALUE
PURCHASE SELLING OF ASSET ON NET GAIN
IDENTITY OF PARTY INVOLVED DESCRIPTION OF ASSET PRICE PRICE COST TRANSACTION DATE (LOSS)
- -------------------------- -------------------- -------- ------- ---- ---------------- --------
<S> <C> <C> <C> <C> <C> <C>
American Century* Balanced Investors Fund $ 869,287 $ N/A $ N/A $ 869,287 $ N/A
Barclays PLC Bank Barclays Equity Index 1,177,122 N/A N/A 1,177,122 N/A
SEI Trust Company Bankers Capital
Preservation Trust 1,378,561 N/A N/A 1,378,561 N/A
American Century* Long-Term Bond Fund 1,436,798 N/A N/A 1,436,798 N/A
American Century* Equity Income Fund 2,218,196 N/A N/A 2,218,196 N/A
American Century* Stable Assets Fund 72,576,394 N/A N/A 72,576,394 N/A
American Century* International Growth
Fund 3,459,346 N/A N/A 3,459,346 N/A
Hayes Lemmerz
International, Inc.* Common stock 4,261,598 N/A N/A 4,261,598 N/A
American Century* Strategic Aggressive 689,512 N/A N/A 689,512 N/A
American Century* Strategic Conservative 254,376 N/A N/A 254,376 N/A
American Century* Strategic Moderate 6,289,504 N/A N/A 6,289,504 N/A
American Century* Ultra Investors Fund 13,017,064 N/A N/A 13,017,064 N/A
American Century* Value Fund 2,824,694 N/A N/A 2,824,694 N/A
Vanguard Index Trust - 500
Portfolio 35,255,623 N/A N/A 35,255,623 N/A
American Century* Balanced Investors Fund N/A 5,118,310 4,609,682 5,118,310 508,628
Barclays PLC Bank Barclays Equity Index N/A 6,216,963 4,092,399 6,216,963 2,124,564
SEI Trust Company Bankers Capital
Preservation Trust N/A 2,583,483 2,583,484 2,583,483 (1)
American Century* Long-Term Bond Fund N/A 564,996 556,713 564,996 8,284
American Century* Equity Income Fund N/A 346,315 337,760 346,315 8,555
American Century* Stable Assets Fund N/A 37,488,090 57,309,170 37,488,090 (19,821,081)
American Century* International Growth
Fund N/A 1,115,992 1,021,977 1,115,992 94,015
Hayes Lemmerz
International, Inc.* Common stock N/A 1,703,512 1,765,000 1,703,512 (61,488)
American Century* Strategic Aggressive N/A 150,390 148,069 150,390 2,321
American Century* Strategic Conservative N/A 67,005 66,871 67,005 134
American Century* Strategic Moderate N/A 709,353 682,158 709,353 27,195
American Century* Ultra Investors Fund N/A 4,590,170 5,694,010 4,590,170 (1,103,841)
American Century* Value Fund N/A 287,534 280,898 287,534 6,636
Vanguard Index Trust - 500
Portfolio N/A 11,659,717 18,523,590 11,659,717 (6,863,874)
</TABLE>
- -------------------------
* Denotes party-in-interest
<PAGE> 18
EXHIBIT 23
INDEPENDENT ACCOUNTANT'S CONSENT
The Board of Directors
Hayes Lemmerz International, Inc.:
We consent to the incorporation by reference in the Registration Statement on
Form S-8 (Number 333-08079) of our report dated July 7, 1998, with respect to
the financial statements of Hayes Lemmerz International, Inc. Retirement Savings
Plan for the year ended December 31, 1997, included in this Annual Report on
Form 11-K.
/s/ KPMG Peat Marwick LLP
Detroit, Michigan
July 15, 1998
