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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 11-K
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ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended June 30, 1996
-----------------------------------
Commission file number: 33-60032
BUCKEYE RETIREMENT PLUS SAVINGS PLAN
-----------------------------------
Buckeye Cellulose Corporation
1001 Tillman Street, Memphis, TN 38112
901-320-8100
Plan Number 333/001
Internal Revenue Service -- Employer Identification No. 62-1518973
June 30, 1996 and 1995
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<PAGE>
BUCKEYE RETIREMENT PLUS SAVINGS PLAN
Form 5500--Item 26b
Audited Financial Statements and Supplemental Schedules
Years ended June 30, 1996 and 1995
Contents
Report of Independent Auditors.............................................1
Financial Statements
Statements of Net Assets Available for Benefits,
with Fund Information....................................................2
Statement of Changes in Net Assets Available for Benefits,
with Fund Information....................................................4
Notes to Financial Statements..............................................5
Supplemental Schedules
Item 27a--Schedule of Assets Held for Investment Purposes..................10
Item 27d--Schedule of Reportable Transactions..............................11
<PAGE>
Report of Independent Auditors
To the Buckeye Investment Committee
We have audited the accompanying statements of net assets available for benefits
of the Buckeye Retirement Plus Savings Plan (the Plan) as of June 30, 1996 and
1995, and the related statement of changes in net assets available for benefits
for the year ended June 30, 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. These standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan at June
30, 1996 and 1995 and the changes in net assets available for benefits for the
year ended June 30, 1996 in conformity with generally accepted accounting
principles.
Our audits were performed for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment purposes as of June 30, 1996, and reportable transactions
for the year then ended are presented for purposes of complying with the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974, and are not a required part
of the financial statements. The Fund Information in the statements of net
assets available for benefits as of June 30, 1996 and 1995 and the statement of
changes in net assets available for benefits for the year ended June 30, 1996 is
presented for purposes of additional analysis rather than to present the net
assets available for benefits and changes in net assets available for benefits
of each fund. The supplemental schedules and Fund Information have been
subjected to the auditing procedures applied in our audits of the financial
statements and, in our opinion, are fairly stated in all material respects in
relation to the financial statements taken as a whole.
December 6, 1996
1
<PAGE>
<TABLE>
<CAPTION>
Buckeye Retirement Plus Savings Plan
Statements of Net Assets Available for Benefits,
with Fund Information
June 30, 1996
Money Stock Growth Buckeye
Market Bond Balanced Index Stock Value Stock
Fund Fund Fund Fund Fund Fund Fund Total
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair
value--Note 3:
Mutual funds:
Money Market Fund $408,590 $ $ $ $ $ $ $ 408,590
Bond Fund 274,524 274,524
Balanced Fund 1,214,842 1,214,842
Stock Index Fund 2,063,777 2,063,777
Growth Stock Fund 6,245,364 6,245,364
Value Fund 1,676,435 1,676,435
Buckeye Stock Fund 1,119,828 1,119,828
--------------------------------------------------------------------------------------------------------
Total investments 408,590 274,524 1,214,842 2,063,777 6,245,364 1,676,435 1,119,828 13,003,360
Contributions receivable:
Employer 759 279 1,289 2,305 9,521 2,221 2,379,605 2,395,979
Employee 1,842 2,267 26,408 64,275 170,074 102,191 67,704 434,761
--------------------------------------------------------------------------------------------------------
2,601 2,546 27,697 66,580 179,595 104,412 2,447,309 2,830,740
Cash 300 1,311 3,006 2,453,060 2,457,677
Accrued income 1,951 11 40 71 246 24 1,436 3,779
--------------------------------------------------------------------------------------------------------
Net assets available for
benefits $413,142 $277,381 $1,242,579 $2,131,739 $6,428,211 $1,780,871 $6,021,633 $18,295,556
========================================================================================================
</TABLE>
See accompanying notes.
2
<PAGE>
<TABLE>
<CAPTION>
Buckeye Retirement Plus Savings Plan
Statements of Net Assets Available for Benefits,
with Fund Information
June 30, 1995
Money Stock Growth
Market Bond Balanced Index Stock
Fund Fund Fund Fund Fund Total
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investments, at fair value--Note 3:
Mutual funds:
Money Market Fund $371,175 $ $ $ $ $ 371,175
Bond Fund 296,576 296,576
Balanced Fund 1,129,889 1,129,889
Stock Index Fund 1,275,380 1,275,380
Growth Stock Fund 5,564,195 5,564,195
---------------------------------------------------------------------------------------
Total investments 371,175 296,576 1,129,889 1,275,380 5,564,195 8,637,215
Contributions receivable:
Employer 130,445 80,067 293,226 330,885 1,252,412 2,087,035
Employee 9,409 15,993 97,780 99,065 478,741 700,988
---------------------------------------------------------------------------------------
139,854 96,060 391,006 429,950 1,731,153 2,788,023
Cash 1,082 985 7,603 83,423 14,789 107,882
Accrued income 14,758 10 59 5,468 154 20,449
---------------------------------------------------------------------------------------
Net assets available for benefits $526,869 $393,631 $1,528,557 $1,794,221 $7,310,291 $11,553,569
=======================================================================================
</TABLE>
See accompanying notes.
3
<PAGE>
<TABLE>
<CAPTION>
Buckeye Retirement Plus Savings Plan
Statement of Changes in Net Assets Available for Benefits,
with Fund Information
Year ended June 30, 1996
Money Stock Growth Buckeye
Market Bond Balanced Index Stock Value Stock
Fund Fund Fund Fund Fund Fund Fund Total
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions To Net Assets Attributed To:
Investment income (loss):
Net realized and unrealized
appreciation (depreciation) in
fair value of investments $ - $ (7,958) $ 74,446 $ 404,218 $1,001,738 $ 45,357 $ 212,040 $1,729,841
Interest and dividends 9,612 21,601 84,812 51,496 365,377 127,186 2,706 662,790
-------------------------------------------------------------------------------------------
9,612 13,643 159,258 455,714 1,367,115 172,543 214,746 2,392,631
Contributions:
Employer 759 700 4,943 7,383 31,609 5,152 2,379,605 2,430,151
Employee 89,047 58,024 242,940 398,227 1,258,147 292,316 201,767 2,540,468
-------------------------------------------------------------------------------------------
89,806 58,724 247,883 405,610 1,289,756 297,468 2,581,372 4,970,619
Total additions 99,418 72,367 407,141 861,324 2,656,871 470,011 2,796,118 7,363,250
Deductions From Net Assets Attributed To:
Benefits paid to participants 35,027 22,639 81,078 56,566 238,636 1,508 12,262 447,716
Administrative expenses 4,742 6,486 20,773 28,925 93,581 12,305 6,735 173,547
-------------------------------------------------------------------------------------------
Total deductions 39,769 29,125 101,851 85,491 332,217 13,813 18,997 621,263
-------------------------------------------------------------------------------------------
Net increase prior to interfund transfers 59,649 43,242 305,290 775,833 2,324,654 456,198 2,777,121 6,741,987
Interfund transfers (net) (173,376) (159,492) (591,268) (438,315)(3,206,734) 1,324,673 3,244,512 -
-------------------------------------------------------------------------------------------
Net increase (decrease) (113,727) (116,250) (285,978) 337,518 (882,080) 1,780,871 6,021,633 6,741,987
Net assets available for benefits at 526,869 393,631 1,528,557 1,794,221 7,310,291 - - 11,553,569
beginning of year
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Net assets available for benefits at $413,142 $277,381 $1,242,579 $2,131,739 $6,428,211 $1,780,871 $6,021,633 $18,295,556
end of year
===========================================================================================
</TABLE>
See accompanying notes.
4
<PAGE>
Buckeye Retirement Plus Savings Plan
Notes to Financial Statements
June 30, 1996
1. DESCRIPTION OF PLAN
- - ----------------------
The following description of the Buckeye Retirement Plus Savings Plan (the Plan)
provides only general information. Participants should refer to the Plan
agreement for a more complete description of the Plan's provisions.
General
- - -------
The Plan was formed on March 16, 1993 as the Buckeye Profit Sharing Plan. The
Plan was significantly amended on July 1, 1993 and the name was changed to the
Buckeye Retirement Plus Savings Plan. As amended, the Plan is a
multiple-employer contributory defined contribution plan covering all full-time
salaried and hourly employees of Buckeye Cellulose Corporation and Buckeye
Florida Limited Partnership (the Companies). On the close of business on June
30, 1996, the multiple-employer plan was converted to a single-employer plan,
with a single asset pool. Employees are eligible upon completion of 1,000 hours
of service during their first year of employment or during any plan year (July 1
to June 30).
Contributions
- - -------------
Employer--The Companies may make a contribution equal to 4% of each
participant's annual gross compensation if certain financial goals are met.
Employee--All eligible participants may contribute up to 10% of gross
compensation to the Plan. Participants may also contribute a portion or all of
incentive compensation, provided total employee contributions do not exceed
$9,500 and $9,240 for calendar years 1996 and 1995, respectively.
Participant Accounts
- - --------------------
Each participant's account is credited with the participant's contributions,
employer contribution, and allocations of Plan earnings and administrative
expenses.
Vesting
- - -------
Participants are immediately vested in all contributions to the Plan plus actual
earnings thereon.
5
<PAGE>
Buckeye Retirement Plus Savings Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF PLAN (CONTINUED)
- - ----------------------------------
Investment Options
- - ------------------
Upon enrollment in the Plan, a participant may direct employer and employee
contributions in 10% increments in any of the following five investment options:
Money Market Fund--Funds are invested through a mutual fund in money market
instruments backed by the U.S. government.
Bond Fund--Funds are invested through a mutual fund in a diversified
portfolio of primarily U.S. government securities and high quality corporate
bonds.
Balanced Fund--Funds are invested through a mutual fund in a combination of
common stocks, bonds and cash.
Stock Index Fund--Funds are invested through a mutual fund in stocks of the
Standard & Poor's 500 Index.
Growth Stock Fund--Funds are invested through a mutual fund in common stock
of companies with growth potential.
Value Fund--Funds are invested through a mutual fund in equity securities.
Buckeye Stock Fund--Funds are invested in Buckeye Cellulose Corporation
(BCC) common stock.
Participants may change their investment options quarterly.
2. SIGNIFICANT ACCOUNTING POLICIES
- - ----------------------------------
Investments
- - -----------
Investments are stated at fair market value (based on quoted market prices) with
the change in carrying value reported as the net change in unrealized
appreciation or depreciation in aggregate fair value of investments. Purchases
and sales of investments are recorded on a trade-date basis. Interest income is
recorded on the accrual basis.
6
<PAGE>
Buckeye Retirement Plus Savings Plan
Notes to Financial Statements (continued)
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
- - ----------------------------------------------
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 amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
3. INVESTMENTS
- - --------------
Investments that represent 5 percent or more of the Plan's net assets are
separately identified.
June 30
1996 1995
-----------------------------
Investments at fair value as determined by
quoted market price:
Federated Short Term U.S. Government
Treasury, 408,590 and 371,175 shares,
respectively $ 408,590 $ 371,175
Strong Government Securities Fund, 26,809
and 28,326 shares, respectively 274,524 296,576
Fidelity Balanced Fund, 86,848 shares - 1,129,889
Vanguard Index Trust 500 Portfolio, 24,934
shares - 1,275,380
Janus Fund, Inc., 245,494 and 254,305
shares, respectively 6,245,364 5,564,195
Dodge and Cox Balance Fund, 21,532 shares 1,214,842 -
Vanguard Institutional Index Fund, 32,634
shares 2,063,777 -
MAS Value Fund, 111,169 shares 1,676,435 -
Buckeye Cellulose Corporation common stock,
40,721 shares 1,119,828 -
--------------------------------
$13,003,360 $8,637,215
================================
7
<PAGE>
Buckeye Retirement Plus Savings Plan
Notes to Financial Statements (continued)
3. INVESTMENTS (CONTINUED)
- - --------------------------
During 1996, the Plan's investments (including investments bought, sold, and
held during the year) appreciated (depreciated) in value as follows:
Year ended
June 30, 1996
-----------------
Investments at fair value as determined by
quoted market price:
Strong Government Securities Fund $ (7,958)
Dodge and Cox Balanced Fund 74,446
Vanguard Institutional Index Fund 182,519
Vanguard Index Trust 500 Portfolio 221,699
Janus Fund, Inc. 1,001,738
MAS Value Fund 45,357
Buckeye Cellulose Corporation common stock 212,040
-----------------
$1,729,841
=================
4. RELATED PARTY TRANSACTIONS
- - -----------------------------
The Plan purchased 40,721 shares of BCC common stock during the year. The stock
had a market value of $1,119,828 at June 30, 1996. There were no other
transactions with related parties.
5. DIFFERENCES BETWEEN FINANCIAL STATEMENTS AND FORM 5500
- - ---------------------------------------------------------
The following is a reconciliation of net assets available for benefits per the
financial statements to the Form 5500:
June 30, 1996
----------------
Net assets available for benefits per the financial statements $18,295,556
Amounts allocated to withdrawn participants (153,033)
----------------
Net assets available for benefits per the Form 5500 $18,142,523
================
8
<PAGE>
Buckeye Retirement Plus Savings Plan
Notes to Financial Statements (continued)
5. DIFFERENCES BETWEEN FINANCIAL STATEMENTS AND FORM 5500 (CONTINUED)
- - ---------------------------------------------------------------------
The following is a reconciliation of benefits paid to participants per the
financial statements to the Form 5500:
Year ended
June 30, 1996
----------------
Benefits paid to participants per the financial statements $447,716
Amounts allocated on Form 5500 to withdrawn participants
at June 30, 1996 153,033
================
Benefits paid to participants per the Form 5500 $600,749
================
6. PLAN TERMINATION
- - -------------------
Although they have not expressed any intent to do so, the Companies have the
right to terminate the Plan subject to the provisions of the Employee Retirement
Income Security Act of 1974 (ERISA). In the event of plan termination,
participants will be entitled to 100 percent of the value in their accounts.
7. INCOME TAX STATUS
- - --------------------
The Internal Revenue Service (IRS) has ruled that the Plan qualifies under the
applicable sections of the Internal Revenue Code (IRC) and is, therefore, not
subject to tax under present income tax law. Once qualified, the Plan is
required to operate in conformity with the IRC to maintain its qualification.
Management is not aware of any course of action or series of events that have
occurred that might adversely affect the Plan's qualified status.
9
<PAGE>
<TABLE>
<CAPTION>
Buckeye Retirement Plus Savings Plan
Item 27a--Schedule of Assets Held for Investment Purposes
June 30, 1996
Description of Investment
Including Maturing Date, Number
Rate of Interest, of Current
Par or Maturity Value Shares Cost Value
- - -------------------------------------------------------------------------------
<S> <C> <C> <C>
Federated Short Term U.S. Government
Treasury 408,590 $ 408,590 $ 408,590
Strong Government Securities Fund 26,809 280,771 274,524
Dodge and Cox Balanced Fund 21,532 1,115,282 1,214,842
Vanguard Institutional Index Fund 32,634 1,915,698 2,063,777
Janus Fund, Inc. 245,494 5,542,774 6,245,364
MAS Value Fund 111,169 924,537 1,676,435
*Buckeye Cellulose Corporation common
stock 40,721 909,783 1,119,828
----------------------------
$11,097,435 $13,003,360
============================
</TABLE>
* Denotes party-in-interest of the Plan.
10
<PAGE>
<TABLE>
<CAPTION>
Buckeye Retirement Plus Savings Plan
Item 27d--Schedule of Reportable Transactions
Year ended June 30, 1996
Current
Value of
Identity Description Number Asset on Net
of of of Purchase Selling Cost of Transaction Gain or
Party Involved Investment Transactions Price Price Asset Date (Loss)
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Category (i)--single transaction in excess of
5 percent of plan assets
Purchases of assets:
First Tennessee Bank* Dodge & Cox Balanced Fund 1 $924,025 $ $924,025 $924,025 $
Dodge & Cox Balanced Fund 1 620,245 620,245 620,245
Janus Fund 1 927,440 927,440 927,440
MAS Value Fund 1 833,885 833,885 833,885
Fidelity Balanced Fund 1 979,939 979,939 979,939
Fidelity Balanced Fund 1 1,436,083 1,436,083 1,436,083
Fidelity Balanced Fund 1 617,473 617,473 617,473
Fidelity Balanced Fund 1 1,014,002 1,014,012 1,014,012
Vanguard Institutional Index Fund 1 1,339,826 1,339,826 1,339,826
Vanguard Institutional Index Fund 1 828,157 828,157 828,157
Sales of assets:
First Tennessee Bank* Janus Fund 1 777,622 685,019 739,809 37,813
Janus Fund 1 969,102 804,437 862,463 106,639
Janus Fund 1 604,957 500,053 534,689 70,268
Vanguard Index Trust 500 Portfolio 1 1,339,826 1,114,206 1,210,479 129,347
Vanguard Index Trust 500 Portfolio 1 828,157 687,556 749,780 78,377
Fidelity Balanced Fund 1 957,550 957,550 957,550
Fidelity Balanced Fund 1 610,518 610,518 610,518
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
Buckeye Retirement Plus Savings Plan
Item 27d--Schedule of Reportable Transactions (continued)
Current
Value of
Identity Description Number Asset on Net
of of of Purchase Selling Cost of Transaction Gain or
Party Involved Investment Transactions Price Price Asset Date (Loss)
- - -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Category (iii)--series of transactions in excess of
5 percent of plan assets
Purchases of assets:
First Tennessee Bank* Buckeye Cellulose Corp. 69 $ 909,783 $ $ 909,783 $ 909,783 $
Dodge & Cox Balanced Fund 73 1,868,408 1,868,408 1,868,408
Janus Fund 95 3,275,003 3,275,003 3,275,003
MAS Value Fund 73 1,847,149 1,847,149 1,847,149
Vanguard Institutional Index Fund 52 2,388,954 2,388,954 2,388,954
Vanguard Index Trust Fund 59 866,672 866,672 866,672
Fidelity Balanced Fund 612 3,370,723 3,370,723 3,370,723
Sales of assets:
First Tennessee Bank* Dodge & Cox Balanced Fund 20 728,821 723,785 753,127 (24,306)
Janus Fund 25 3,595,518 3,062,889 3,296,370 299,148
Vanguard Index Trust 500 Portfolio 13 2,363,854 1,967,013 2,142,155 221,699
Fidelity Balanced Fund 388 3,400,519 3,400,519 3,400,519
</TABLE>
* Denotes party-in-interest of the plan.
There were no category (ii) or (iv) reportable transactions during 1996.
12
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Retirement Plan Committee of the Employee Retirement Plans for Buckeye Cellulose
Corporation has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BUCKEYE RETIREMENT PLUS SAVINGS PLAN
By: /s/ DAVID H. WHITCOMB
------------------------------------
David H. Whitcomb,
Vice President and Comptroller
Date: December 20, 1996
13
BUCKEYE RETIREMENT PLUS SAVINGS PLAN
Exhibit Index
Exhibit No. Description
23 Consent of Independent Auditors
<PAGE>
Exhibit 23
Consent of Independent Auditors
We consent to the incorporation by reference in the Registration Statement (Form
S-8, Number 33-80865) pertaining to the Buckeye Retirement Plus Savings Plan of
our report dated December 6, 1996 with respect to the financial statements and
schedules of the Buckeye Retirement Plus Savings Plan included in this Annual
Report (Form 11-K) for the year ended June 30, 1996.
Ernst & Young LLP
Memphis, Tennessee
December 17, 1996
