<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
------ ------
Commission file number: 0-23876
JEFFERSON SMURFIT CORPORATION SAVINGS PLAN
JEFFERSON SMURFIT CORPORATION HOURLY SAVINGS PLAN
SMURFIT PACKAGING CORPORATION SAVINGS PLAN
(Full title of the plans)
JEFFERSON SMURFIT CORPORATION
8182 Maryland Avenue
St. Louis, Missouri 63105
(Name of issuer of the securities held pursuant to the plans
and address of its principal executive office)
<PAGE> 2
INDEX
Financial Statements and Supplemental Schedules for the years ended December 31,
1997 and 1996 for:
- Jefferson Smurfit Corporation Savings Plan
- Jefferson Smurfit Corporation Hourly Savings Plan
- Smurfit Packaging Corporation Savings Plan
Exhibit 23.1 Consent of Independent Auditors
2
<PAGE> 3
Financial Statements
and Supplemental Schedules
Jefferson Smurfit Corporation
Savings Plan
Years ended December 31, 1997 and 1996
with Report of Independent Auditors
3
<PAGE> 4
Jefferson Smurfit Corporation
Savings Plan
Financial Statements
and Supplemental Schedules
Years ended December 31, 1997 and 1996
CONTENTS
<TABLE>
<CAPTION>
<S> <C>
Report of Independent Auditors................................................... 5
Financial Statements
Statements of Net Assets Available for Plan Benefits............................. 6
Statements of Changes in Net Assets Available for Plan Benefits.................. 16
Notes to Financial Statements.................................................... 26
Supplemental Schedules
Line 27a - Assets Held for Investment............................................ 34
Line 27d - Transactions or Series of Transactions in Excess of 5%
of the Current Value of Plan Assets........................................... 35
</TABLE>
4
<PAGE> 5
Report of Independent Auditors
Administrative Committee
Jefferson Smurfit Corporation Retirement Plans
We have audited the accompanying statements of net assets available for plan
benefits of Jefferson Smurfit Corporation Savings Plan as of December 31, 1997
and 1996, and the related statements of changes in net 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 net assets available for plan benefits at December
31, 1997 and 1996, and the changes in its net 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 financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment as of December 31, 1997 and transactions or series of
transactions in excess of 5 percent of the current value of plan assets 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 plan benefits and the statements of changes in net assets
available for plan benefits is presented for purposes of additional analysis
rather than to represent the net assets available for plan benefits and 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 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.
/s/ Ernst & Young LLP
June 19, 1998
5
<PAGE> 6
5
Jefferson Smurfit Corporation Savings Plan
Statements of Net Assets Available for Plan Benefits
December 31, 1997
<TABLE>
<CAPTION>
T. ROWE PRICE
T. ROWE PRICE ARCH PERSONAL
JS COMMON JS GROUP EQUITY INCOME BALANCED STRATEGY
STOCK FUND STOCK FUND FUND FUND BALANCED FUND SUBTOTAL
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value $27,613,176 $26,666,426 $107,782,570 $ - $24,956,545 $187,018,717
Participant loans - - - - - -
---------------------------------------------------------------------------------------------------
27,613,176 26,666,426 107,782,570 - 24,956,545 187,018,717
Receivables:
Accrued employer
contributions 28,764 - - - - 28,764
---------------------------------------------------------------------------------------------------
Net assets available for
plan benefits $27,641,940 $26,666,426 $107,782,570 $ - $24,956,545 $187,047,481
===================================================================================================
</TABLE>
See accompanying notes.
6
<PAGE> 7
Jefferson Smurfit Corporation Savings Plan
Statements of Net Assets Available for Plan Benefits (continued)
December 31, 1997
<TABLE>
<CAPTION>
PREVIOUS AETNA VIP ARCH
PAGE INTEREST MOBIL STOCK CONTRACT EMERGING
SUBTOTAL INCOME FUND FUND FUND GROWTH FUND SUBTOTAL
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value $187,018,717 $ - $104,319,212 $ - $ - $291,337,929
Participant loans - - - - - -
-------------------------------------------------------------------------------------------------
187,018,717 - 104,319,212 - - 291,337,929
Receivables:
Accrued employer
contributions 28,764 - - - - 28,764
-------------------------------------------------------------------------------------------------
Net assets available for
plan benefits $187,047,481 $ - $104,319,212 $ - $ - $291,366,693
=================================================================================================
</TABLE>
See accompanying notes.
7
<PAGE> 8
Jefferson Smurfit Corporation Savings Plan
Statements of Net Assets Available for Plan Benefits (continued)
December 31, 1997
<TABLE>
<CAPTION>
T. ROWE
PREVIOUS PRICE NEW T. ROWE PRICE
PAGE HORIZONS INTERNATIONAL FIDELITY FIDELITY VALUE
SUBTOTAL FUND STOCK FUND CONTRA FUND FUND SUBTOTAL
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value $291,337,929 $16,388,957 $4,783,744 $1,321,344 $967,629 $314,799,603
Participant loans - - - - - -
-----------------------------------------------------------------------------------------------------
291,337,929 16,388,957 4,783,744 1,321,344 967,629 314,799,603
Receivables:
Accrued employer
contributions 28,764 - - - - 28,764
-----------------------------------------------------------------------------------------------------
Net assets available for
plan benefits $291,366,693 $16,388,957 $4,783,744 $1,321,344 $967,629 $314,828,367
=====================================================================================================
</TABLE>
See accompanying notes.
8
<PAGE> 9
Jefferson Smurfit Corporation Savings Plan
Statements of Net Assets Available for Plan Benefits (continued)
December 31, 1997
<TABLE>
<CAPTION>
T. ROWE T. ROWE PRICE
PREVIOUS PUTNAM NEW PRICE BLENDED EQUITY PERSONAL
PAGE OPPORTUNITIES STABLE VALUE INDEX TRUST STRATEGY
SUBTOTAL FUND FUND (S&P 500) INCOME FUND SUBTOTAL
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value $314,799,603 $ 3,153,006 $57,834,386 $3,761,275 $1,117,981 $380,666,251
Participant loans - - - - - -
---------------------------------------------------------------------------------------------------
314,799,603 3,153,006 57,834,386 3,761,275 1,117,981 380,666,251
Receivables:
Accrued employer
contributions 28,764 - - - - 28,764
---------------------------------------------------------------------------------------------------
Net assets available for
plan benefits $314,828,367 $ 3,153,006 $57,834,386 $3,761,275 $1,117,981 $380,695,015
===================================================================================================
</TABLE>
See accompanying notes.
9
<PAGE> 10
Jefferson Smurfit Corporation Savings Plan
Statements of Net Assets Available for Plan Benefits (continued)
December 31, 1997
<TABLE>
<CAPTION>
T. ROWE T. ROWE
T. ROWE PRICE PRICE SUMMIT PRICE
PREVIOUS PERSONAL CASH SPECTRUM T. ROWE PRICE
PAGE STRATEGY RESERVES INCOME BLUE CHIP
SUBTOTAL GROWTH FUND FUND FUND GROWTH FUND SUBTOTAL
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value $380,666,251 $ 1,302,955 $1,007,171 $1,566,866 $6,383,661 $390,926,904
Participant loans - - - - - -
----------------------------------------------------------------------------------------------------
380,666,251 1,302,955 1,007,171 1,566,866 6,383,661 390,926,904
Receivables:
Accrued employer
contributions 28,764 - - - - 28,764
----------------------------------------------------------------------------------------------------
Net assets available for
plan benefits $380,695,015 $ 1,302,955 $1,007,171 $1,566,866 $6,383,661 $390,955,668
====================================================================================================
</TABLE>
See accompanying notes.
10
<PAGE> 11
Jefferson Smurfit Corporation Savings Plan
Statements of Net Assets Available for Plan Benefits (continued)
December 31, 1997
<TABLE>
<CAPTION>
PREVIOUS
PAGE PARTICIPANT
SUBTOTAL LOANS TOTAL
--------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments, at fair value $390,926,904 $ - $390,926,904
Participant loans - 6,015,381 6,015,381
--------------------------------------------------
390,926,904 6,015,381 396,942,285
Receivables:
Accrued employer
contributions 28,764 - 28,764
--------------------------------------------------
Net assets available for plan
benefits $390,955,668 $ 6,015,381 $396,971,049
==================================================
</TABLE>
See accompanying notes.
11
<PAGE> 12
Jefferson Smurfit Corporation Savings Plan
Statements of Net Assets Available for Plan Benefits (continued)
December 31, 1996
<TABLE>
<CAPTION>
ARCH GROWTH T. ROWE ARCH
JS COMMON JS GROUP AND INCOME PRICE EQUITY BALANCED
STOCK FUND STOCK FUND FUND INCOME FUND FUND SUBTOTAL
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value $24,715,398 $30,638,249 $ 21,616 $85,366,398 $17,065 $140,758,726
Participant loans - - - - - -
-------------------------------------------------------------------------------------------------
24,715,398 30,638,249 21,616 85,366,398 17,065 140,758,726
Receivables:
Accrued investment income
receivable 262 1,379 1,746 3,320,443 284 3,324,114
Due from other funds 51,265 - - 157,208 - 208,473
-------------------------------------------------------------------------------------------------
51,527 1,379 1,746 3,477,651 284 3,532,587
Cash and cash equivalents 597,469 97,452 109,552 217,845 37,561 1,059,879
-------------------------------------------------------------------------------------------------
Total assets 25,364,394 30,737,080 132,914 89,061,894 54,910 145,351,192
LIABILITIES
Accrued administrative fees 15,352 - 81 53,919 33 69,385
Due to other funds - 51,265 132,833 24,375 54,698 263,171
-------------------------------------------------------------------------------------------------
Total liabilities 15,352 51,265 132,914 78,294 54,731 332,556
-------------------------------------------------------------------------------------------------
Net assets available for plan
benefits $25,349,042 $30,685,815 $ - $88,983,600 $ 179 $145,018,636
=================================================================================================
</TABLE>
See accompanying notes.
12
<PAGE> 13
Jefferson Smurfit Corporation Savings Plan
Statements of Net Assets Available for Plan Benefits (continued)
December 31, 1996
<TABLE>
<CAPTION>
T. ROWE
PRICE
PERSONAL
PREVIOUS STRATEGY INTEREST MOBIL AETNA VIP
PAGE BALANCED INCOME STOCK CONTRACT
SUBTOTAL FUND FUND FUND FUND SUBTOTAL
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value $140,758,726 $21,877,304 $51,603,617 $93,370,515 $9,747,131 $317,357,293
Participant loans - - - - - -
--------------------------------------------------------------------------------------------
140,758,726 21,877,304 51,603,617 93,370,515 9,747,131 317,357,293
Receivables:
Accrued investment income
receivable 3,324,114 526,767 34,724 4,028 48,107 3,937,740
Due from other funds 208,473 54,698 - - - 263,171
--------------------------------------------------------------------------------------------
3,532,587 581,465 34,724 4,028 48,107 4,200,911
Cash and cash equivalents 1,059,879 64,155 170,548 913,628 55,218 2,263,428
--------------------------------------------------------------------------------------------
Total assets 145,351,192 22,522,924 51,808,889 94,288,171 9,850,456 323,821,632
LIABILITIES
Accrued administrative fees 69,385 13,627 54,847 57,184 25,974 221,017
Due to other funds 263,171 - - - - 263,171
--------------------------------------------------------------------------------------------
Total liabilities 332,556 13,627 54,847 57,184 25,974 484,188
--------------------------------------------------------------------------------------------
Net assets available for plan
benefits $145,018,636 $22,509,297 $51,754,042 $94,230,987 $9,824,482 $323,337,444
============================================================================================
</TABLE>
See accompanying notes.
13
<PAGE> 14
Jefferson Smurfit Corporation Savings Plan
Statements of Net Assets Available for Plan Benefits (continued)
December 31, 1996
<TABLE>
<CAPTION>
ARCH T. ROWE T. ROWE
PREVIOUS EMERGING PRICE ARCH PRICE
PAGE GROWTH NEW HORIZONS INTERNATIONAL INTERNATIONAL
SUBTOTAL FUND FUND FUND STOCK FUND SUBTOTAL
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value $317,357,293 $ - $13,507,311 $ - $3,017,169 $333,881,773
Participant loans - - - - - -
------------------------------------------------------------------------------------------------
317,357,293 - 13,507,311 - 3,017,169 333,881,773
Receivables:
Accrued investment income
receivable 3,937,740 16 1,358,797 22 83,082 5,379,657
Due from other funds 263,171 - - - 4,799 267,970
------------------------------------------------------------------------------------------------
4,200,911 16 1,358,797 22 87,881 5,647,627
Cash and cash equivalents 2,263,428 - 89,742 2,519 22,202 2,377,891
------------------------------------------------------------------------------------------------
Total assets 323,821,632 16 14,955,850 2,541 3,127,252 341,907,291
LIABILITIES
Accrued administrative
fees 221,017 - 9,070 - 1,894 231,981
Due to other funds 263,171 - - 2,541 2,258 267,970
------------------------------------------------------------------------------------------------
Total liabilities 484,188 - 9,070 2,541 4,152 499,951
------------------------------------------------------------------------------------------------
Net assets available for
plan benefits $323,337,444 $ 16 $14,946,780 $ - $3,123,100 $341,407,340
================================================================================================
</TABLE>
See accompanying notes.
14
<PAGE> 15
Jefferson Smurfit Corporation Savings Plan
Statements of Net Assets Available for Plan Benefits (continued)
December 31, 1996
<TABLE>
<CAPTION>
PREVIOUS
PAGE PARTICIPANT
SUBTOTAL LOANS TOTAL
-----------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments, at fair value $333,881,773 $ - $333,881,773
Participant loans - 6,055,248 6,055,248
-----------------------------------------------------
333,881,773 6,055,248 339,937,021
Receivables:
Accrued investment income
receivable 5,379,657 - 5,379,657
Due from other funds 267,970 - 267,970
-----------------------------------------------------
5,647,627 - 5,647,627
Cash and cash equivalents 2,377,891 - 2,377,891
-----------------------------------------------------
Total assets 341,907,291 6,055,248 347,962,539
LIABILITIES
Accrued administrative fees 231,981 - 231,981
Due to other funds 267,970 - 267,970
-----------------------------------------------------
Total liabilities 499,951 - 499,951
-----------------------------------------------------
Net assets available for plan
benefits $341,407,340 $6,055,248 $347,462,588
=====================================================
</TABLE>
See accompanying notes.
15
<PAGE> 16
Jefferson Smurfit Corporation Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits
Year ended December 31, 1997
<TABLE>
<CAPTION>
T. ROWE T. ROWE PRICE
PRICE ARCH PERSONAL
JS COMMON JS GROUP EQUITY BALANCED STRATEGY
STOCK FUND STOCK FUND INCOME FUND FUND BALANCED FUND SUBTOTAL
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees $ 664,649 $ - $ 5,566,233 $ - $ 1,663,345 $ 7,894,227
Employer 6,927,257 - - - - 6,927,257
Net investment income:
Interest on guaranteed group
annuity contracts - - - - - -
Other investment income - 441,833 10,766,932 - 1,286,708 12,495,473
------------------------------------------------------------------------------------------------
7,591,906 441,833 16,333,165 - 2,950,053 27,316,957
Net realized and unrealized
appreciation (depreciation) of
investments (3,593,270) (2,263,188) 14,001,563 - 2,519,609 10,664,714
Transfers by participants (506,330) (203,718) (5,281,030) (179) (1,250,206) (7,241,463)
Transfers to JS Common Stock Fund
from JS Group Stock Fund 441,833 (441,833) - - - -
Transfer of participant accounts
from Jefferson Smurfit
Corporation Hourly Savings Plan
and Smurfit Packaging
Corporation Savings Plan 27,734 8,063 30,637 - 9,538 75,972
Forfeitures (187,695) (42,320) - - - (230,015)
Withdrawals by participants (1,554,740) (1,518,207) (7,124,809) - (1,983,630) (12,181,386)
Loan repayments by participants 77,090 - 871,597 - 216,779 1,165,466
Administrative expenses (3,630) (19) (32,153) - (14,895) (50,697)
------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets available for plan 2,292,898 (4,019,389) 18,798,970 (179) 2,447,248 19,519,548
benefits
Net assets available for plan
benefits, beginning of year 25,349,042 30,685,815 88,983,600 179 22,509,297 167,527,933
------------------------------------------------------------------------------------------------
Net assets available for plan
benefits, end of year $27,641,940 $26,666,426 $107,782,570 $ - $24,956,545 $187,047,481
================================================================================================
</TABLE>
See accompanying notes.
16
<PAGE> 17
Jefferson Smurfit Corporation Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits (continued)
Year ended December 31, 1997
<TABLE>
<CAPTION>
PREVIOUS ARCH EMERGING
PAGE INTEREST MOBIL STOCK AETNA VIP GROWTH
SUBTOTAL INCOME FUND FUND CONTRACT FUND FUND SUBTOTAL
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees $ 7,894,227 $ - $ - $ - $ - $ 7,894,227
Employer 6,927,257 - - - - 6,927,257
Net investment income:
Interest on guaranteed group
annuity contracts - - - - - -
Other investment income 12,495,473 - 3,182,018 - - 15,677,491
------------------------------------------------------------------------------------------------
27,316,957 - 3,182,018 - - 30,498,975
Net realized and unrealized
appreciation (depreciation)
of investments 10,664,714 - 16,622,739 - - 27,287,453
Transfers by participants (7,241,463) (51,754,042) (2,239,524) (9,824,482) (16) (71,059,527)
Transfers to JS Common Stock Fund
from JS Group Stock Fund - - - - - -
Transfer of participant accounts
from Jefferson Smurfit
Corporation Hourly Savings Plan
and Smurfit Packaging
Corporation Savings Plan 75,972 - - - - 75,972
Forfeitures (230,015) - - - - (230,015)
Withdrawals by participants (12,181,386) - (7,476,384) - - (19,657,770)
Loan repayments by participants 1,165,466 - - - - 1,165,466
Administrative expenses (50,697) - (624) - - (51,321)
------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets available for plan 19,519,548 (51,754,042) 10,088,225 (9,824,482) (16) (31,970,767)
benefits
Net assets available for plan
benefits, beginning of year 167,527,933 51,754,042 94,230,987 9,824,482 16 323,337,460
------------------------------------------------------------------------------------------------
Net assets available for plan
benefits, end of year $187,047,481 $ - $104,319,212 $ - $ - $291,366,693
================================================================================================
</TABLE>
See accompanying notes.
17
<PAGE> 18
Jefferson Smurfit Corporation Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits (continued)
Year ended December 31, 1997
<TABLE>
<CAPTION>
T. ROWE T. ROWE
PREVIOUS PRICE NEW PRICE
PAGE HORIZONS INTERNATIONAL FIDELITY FIDELITY VALUE
SUBTOTAL FUND STOCK FUND CONTRA FUND FUND SUBTOTAL
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees $ 7,894,227 $ 2,477,996 $ 777,301 $ 141,452 $ 111,684 $ 11,402,660
Employer 6,927,257 - - - - 6,927,257
Net investment income:
Interest on guaranteed group
annuity contracts - - - - - -
Other investment income 15,677,491 395,945 249,634 108,501 130,501 16,562,072
--------------------------------------------------------------------------------------------------
30,498,975 2,873,941 1,026,935 249,953 242,185 34,891,989
Net realized and unrealized
appreciation (depreciation)
of investments 27,287,453 990,037 (170,003) 11,924 (78,332) 28,041,079
Transfers by participants (71,059,527) (1,830,422) 997,300 1,133,159 794,497 (69,964,993)
Transfers to JS Common Stock Fund
from JS Group Stock Fund - - - - - -
Transfer of participant accounts
from Jefferson Smurfit
Corporation Hourly Savings
Plan and Smurfit Packaging
Corporation Savings Plan 75,972 14,940 1,245 - - 92,157
Forfeitures (230,015) - - - - (230,015)
Withdrawals by participants (19,657,770) (915,551) (287,200) (88,486) (4,972) (20,953,979)
Loan repayments by participants 1,165,466 313,698 94,606 14,926 14,369 1,603,065
Administrative expenses (51,321) (4,466) (2,239) (132) (118) (58,276)
--------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets available for plan
benefits (31,970,767) 1,442,177 1,660,644 1,321,344 967,629 (26,578,973)
Net assets available for plan
benefits, beginning of year 323,337,460 14,946,780 3,123,100 - - 341,407,340
--------------------------------------------------------------------------------------------------
Net assets available for plan
benefits, end of year $291,366,693 $16,388,957 $4,783,744 $1,321,344 $967,629 $314,828,367
==================================================================================================
</TABLE>
See accompanying notes.
18
<PAGE> 19
Jefferson Smurfit Corporation Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits (continued)
Year ended December 31, 1997
<TABLE>
<CAPTION>
T. ROWE
PRICE T. ROWE PRICE
PREVIOUS PUTNAM NEW BLENDED EQUITY PERSONAL
PAGE OPPORTUNITIES STABLE VALUE INDEX TRUST STRATEGY
SUBTOTAL FUND FUND (S&P 500) INCOME FUND SUBTOTAL
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees $ 11,402,660 $ 565,311 $ 2,914,881 $ 344,687 $ 84,944 $ 15,312,483
Employer 6,927,257 - - - - 6,927,257
Net investment income:
Interest on guaranteed group
annuity contracts - - 3,553,843 - - 3,553,843
Other investment income 16,562,072 66,574 - 7 52,480 16,681,133
------------------------------------------------------------------------------------------------
34,891,989 631,885 6,468,724 344,694 137,424 42,474,716
Net realized and unrealized
appreciation (depreciation) of
investments 28,041,079 354,591 - 487,442 27,611 28,910,723
Transfers by participants (69,964,993) 2,103,222 56,306,243 2,996,662 953,641 (7,605,225)
Transfers to JS Common Stock Fund
from JS Group Stock Fund - - - - - -
Transfer of participant accounts
from Jefferson Smurfit
Corporation Hourly Savings Plan
and Smurfit Packaging
Corporation Savings Plan 92,157 16,374 52,954 - - 161,485
Forfeitures (230,015) - - - - (230,015)
Withdrawals by participants (20,953,979) (18,265) (5,458,824) (96,883) (12,727) (26,540,678)
Loan repayments by participants 1,603,065 65,298 524,396 30,013 12,618 2,235,390
Administrative expenses (58,276) (99) (59,107) (653) (586) (118,721)
------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets available for plan (26,578,973) 3,153,006 57,834,386 3,761,275 1,117,981 39,287,675
benefits
Net assets available for plan
benefits, beginning of year 341,407,340 - - - - 341,407,340
------------------------------------------------------------------------------------------------
Net assets available for plan
benefits, end of year $314,828,367 $3,153,006 $57,834,386 $3,761,275 $1,117,981 $380,695,015
================================================================================================
</TABLE>
See accompanying notes.
19
<PAGE> 20
Jefferson Smurfit Corporation Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits (continued)
Year ended December 31, 1997
<TABLE>
<CAPTION>
T. ROWE
T. ROWE PRICE PRICE SUMMIT
PREVIOUS PERSONAL CASH T. ROWE PRICE T. ROWE PRICE
PAGE STRATEGY RESERVES SPECTRUM BLUE CHIP
SUBTOTAL GROWTH FUND FUND INCOME FUND GROWTH FUND SUBTOTAL
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees $ 15,312,483 $ 373,603 $ 359,278 $ 158,345 $1,016,410 $ 17,220,119
Employer 6,927,257 - - - - 6,927,257
Net investment income:
Interest on guaranteed group
annuity contracts 3,553,843 - - - - 3,553,843
Other investment income 16,681,133 34,363 32,351 66,187 36,451 16,850,485
------------------------------------------------------------------------------------------------
42,474,716 407,966 391,629 224,532 1,052,861 44,551,704
Net realized and unrealized
appreciation (depreciation)
of investments 28,910,723 87,199 - 30,017 827,139 29,855,078
Transfers by participants (7,605,225) 792,399 904,637 1,439,635 4,468,554 -
Transfers to JS Common Stock Fund
from JS Group Stock Fund - - - - - -
Transfer of participant accounts
from Jefferson Smurfit
Corporation Hourly Savings Plan
and Smurfit Packaging
Corporation Savings Plan 161,485 - - - 26,448 187,933
Forfeitures (230,015) - 12,102 - - (217,913)
Withdrawals by participants (26,540,678) (20,115) (599,759) (141,913) (88,454) (27,390,919)
Loan repayments by participants 2,235,390 35,904 303,184 15,238 98,211 2,687,927
Administrative expenses (118,721) (398) (4,622) (643) (1,098) (125,482)
------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets available for plan 39,287,675 1,302,955 1,007,171 1,566,866 6,383,661 49,548,328
benefits
Net assets available for plan
benefits, beginning of year 341,407,340 - - - - 341,407,340
------------------------------------------------------------------------------------------------
Net assets available for plan
benefits, end of year $380,695,015 $1,302,955 $1,007,171 $1,566,866 $6,383,661 $390,955,668
================================================================================================
</TABLE>
See accompanying notes.
20
<PAGE> 21
Jefferson Smurfit Corporation Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits (continued)
Year ended December 31, 1997
<TABLE>
<CAPTION>
PREVIOUS
PAGE PARTICIPANT
SUBTOTAL LOANS TOTAL
-----------------------------------------------------
<S> <C> <C> <C>
Contributions:
Employees $ 17,220,119 $ - $ 17,220,119
Employer 6,927,257 - 6,927,257
Net investment income:
Interest on guaranteed group
annuity contracts 3,553,843 - 3,553,843
Other investment income 16,850,485 471,898 17,322,383
-----------------------------------------------------
44,551,704 471,898 45,023,602
Net realized and unrealized
appreciation (depreciation) of
investments 29,855,078 - 29,855,078
Transfers by participants - - -
Transfers to JS Common Stock Fund
from JS Group Stock Fund - - -
Transfer of participant accounts
from Jefferson Smurfit
Corporation Hourly Savings Plan
and Smurfit Packaging
Corporation Savings Plan 187,933 - 187,933
Forfeitures (217,913) - (217,913)
Withdrawals by participants (27,390,919) 2,176,162 (25,214,757)
Loan repayments by participants 2,687,927 (2,687,927) -
Administrative expenses (125,482) - (125,482)
-----------------------------------------------------
Net increase (decrease) in net
assets available for plan 49,548,328 (39,867) 49,508,461
benefits
Net assets available for plan
benefits, beginning of year 341,407,340 6,055,248 347,462,588
-----------------------------------------------------
Net assets available for plan
benefits, end of year $390,955,668 $ 6,015,381 $396,971,049
=====================================================
</TABLE>
See accompanying notes.
21
<PAGE> 22
Jefferson Smurfit Corporation Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits (continued)
Year ended December 31, 1996
<TABLE>
<CAPTION>
ARCH GROWTH T. ROWE PRICE ARCH
JS COMMON JS GROUP AND INCOME EQUITY INCOME BALANCED
STOCK FUND STOCK FUND FUND FUND FUND SUBTOTAL
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees $ 850,947 $ - $ 5,223,446 $ 1,365,681 $ 1,558,365 $ 8,998,439
Employer 6,379,285 - - - - 6,379,285
Net investment income:
Interest on guaranteed group
annuity contracts - - - - - -
Other investment income 9,286 698,176 889,069 3,320,443 438,756 5,355,730
------------------------------------------------------------------------------------------------
7,239,518 698,176 6,112,515 4,686,124 1,997,121 20,733,454
Net realized and unrealized
appreciation (depreciation) of
investments 8,562,282 6,724,587 12,649,055 (1,559,910) 1,703,900 28,079,914
Transfers by participants 222,006 (289,996) (83,966,062) 86,212,079 (21,564,390) 19,386,363)
Transfers to JS Common Stock Fund
from JS Group Stock Fund 689,408 (689,408) - - - -
Forfeitures (59,524) (38,788) - - - (98,312)
Withdrawals by participants (518,735) (1,695,600) (7,003,474) (300,774) (1,244,819) (10,763,402)
Loan repayments by participants 12,539 - 885,778 - 202,602 1,100,919
Administrative expenses (85,248) - (122,514) (53,919) (41,840) (303,521)
------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets available for plan 16,062,246 4,708,971 (71,444,702) 88,983,600 (18,947,426) 19,362,689
benefits
Net assets available for plan
benefits, beginning of year 9,286,796 25,976,844 71,444,702 - 18,947,605 125,655,947
------------------------------------------------------------------------------------------------
Net assets available for plan
benefits, end of year $25,349,042 $30,685,815 $ - $88,983,600 $ 179 $145,018,636
================================================================================================
</TABLE>
See accompanying notes.
22
<PAGE> 23
Jefferson Smurfit Corporation Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits (continued)
Year ended December 31, 1996
<TABLE>
<CAPTION>
T. ROWE PRICE
PERSONAL
PREVIOUS STRATEGY AETNA VIP
PAGE BALANCED INTEREST MOBIL STOCK CONTRACT
SUBTOTAL FUND INCOME FUND FUND FUND SUBTOTAL
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees $ 8,998,439 $ 424,500 $ 2,971,391 $ - $ 495,410 12,889,740
Employer 6,379,285 - - - - 6,379,285
Net investment income:
Interest on guaranteed group
annuity contracts - - 1,811,113 - 570,977 2,382,090
Other investment income 5,355,730 526,767 - 3,258,268 - 9,140,765
------------------------------------------------------------------------------------------------
20,733,454 951,267 4,782,504 3,258,268 1,066,387 30,791,880
Net realized and unrealized
appreciation (depreciation) of
investments 28,079,914 125,174 1,218,140 8,344,447 - 37,767,675
Transfers by participants (19,386,363) 21,620,255 (2,489,935) (259,755) (116,337) (632,135)
Transfers to JS Common Stock Fund
from JS Group Stock Fund - - - - - -
Forfeitures (98,312) - - - - (98,312)
Withdrawals by participants (10,763,402) (173,772) (6,190,601) (17,857,647) (1,198,585) (36,184,007)
Loan repayments by participants 1,100,919 - 855,145 434,133 69,281 2,459,478
Administrative expenses (303,521) (13,627) (61,885) (83,152) (8,773) (470,958)
------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets available for plan 19,362,689 22,509,297 (1,886,632) (6,163,706) (188,027) 33,633,621
benefits
Net assets available for plan
benefits, beginning of year 125,655,947 - 53,640,674 100,394,693 10,012,509 289,703,823
------------------------------------------------------------------------------------------------
Net assets available for plan
benefits, end of year $145,018,636 $22,509,297 $51,754,042 $ 94,230,987 $ 9,824,482 $323,337,444
================================================================================================
</TABLE>
See accompanying notes.
23
<PAGE> 24
Jefferson Smurfit Corporation Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits (continued)
Year ended December 31, 1996
<TABLE>
<CAPTION>
PREVIOUS ARCH T. ROWE PRICE ARCH T. ROWE PRICE
PAGE EMERGING NEW HORIZONS INTERNATIONAL INTERNATIONAL
SUBTOTAL GROWTH FUND FUND FUND STOCK FUND SUBTOTAL
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees $ 12,889,740 $ 2,169,904 $ 568,267 $ 551,428 $ 145,942 $ 16,325,281
Employer 6,379,285 - - - - 6,379,285
Net investment income:
Interest on guaranteed group 2,382,090 -
annuity contracts - - - 2,382,090
Other investment income 9,140,765 19,883 1,358,797 1,923 83,081 10,604,449
------------------------------------------------------------------------------------------------
30,791,880 2,189,787 1,927,064 553,351 229,023 35,691,105
Net realized and unrealized
appreciation (depreciation) of
investments 37,767,675 1,210,696 (1,328,735) 146,492 31,002 37,827,130
Transfers by participants (632,135) (14,521,771) 14,516,097 (2,238,193) 2,876,002 -
Transfers to JS Common Stock Fund
from JS Group Stock Fund - - - - - -
Forfeitures (98,312) - - - - (98,312)
Withdrawals by participants (36,184,007) (652,256) (147,925) (82,967) (11,033) (37,078,188)
Loan repayments by participants 2,459,478 84,312 - 8,014 - 2,551,804
Administrative expenses (470,958) (15,596) (19,721) (9,562) (1,894) (517,731)
------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets available for plan 33,633,621 (11,704,828) 14,946,780 (1,622,865) 3,123,100 38,375,808
benefits
Net assets available for plan
benefits, beginning of year 289,703,823 11,704,844 - 1,622,865 - 303,031,532
------------------------------------------------------------------------------------------------
Net assets available for plan
benefits, end of year $323,337,444 $ 16 $14,946,780 $ - $3,123,100 $341,407,340
================================================================================================
</TABLE>
See accompanying notes.
24
<PAGE> 25
Jefferson Smurfit Corporation Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits (continued)
Year ended December 31, 1996
<TABLE>
<CAPTION>
PREVIOUS
PAGE PARTICIPANT
SUBTOTAL LOANS TOTAL
--------------------------------------------------------
<S> <C> <C> <C>
Contributions:
Employees $ 16,325,281 $ - $ 16,325,281
Employer 6,379,285 - 6,379,285
Net investment income:
Interest on guaranteed group
annuity contracts 2,382,090 - 2,382,090
Other investment income 10,604,449 432,911 11,037,360
--------------------------------------------------------
35,691,105 432,911 36,124,016
Net realized and unrealized
appreciation (depreciation) of
investments 37,827,130 - 37,827,130
Transfers by participants - - -
Transfers to JS Common Stock Fund
from JS Group Stock Fund - - -
Forfeitures (98,312) - (98,312)
Withdrawals by participants (37,078,188) 2,333,541 (34,744,647)
Loan repayments by participants 2,551,804 (2,551,804) -
Administrative expenses (517,731) - (517,731)
--------------------------------------------------------
Net increase (decrease) in net
assets available for plan 38,375,808 214,648 38,590,456
benefits
Net assets available for plan
benefits, beginning of year 303,031,532 5,840,600 308,872,132
--------------------------------------------------------
Net assets available for plan
benefits, end of year $341,407,340 $ 6,055,248 $347,462,588
========================================================
</TABLE>
See accompanying notes.
25
<PAGE> 26
Jefferson Smurfit Corporation
Savings Plan
Notes to Financial Statements
December 31, 1997
1. SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Jefferson Smurfit Corporation Savings Plan (the
Plan) are reported on the accrual basis. The current values of investments have
been determined by T. Rowe Price as trustee for 1997 and by Mercantile Bank of
St. Louis, N.A. (Mercantile) as trustee for 1996 and have been based on closing
prices if traded on national stock exchanges or bid prices for bonds. The
immediate participation contracts and participant loans are valued at cost which
approximates market. The differences between the current value and the cost of
investments are reflected in the statements of changes in net assets available
for plan benefits as part of net realized and unrealized appreciation
(depreciation) of investments. The cost of securities sold is based on the
weighted average method.
As of January 1, 1997, the Plan changed the plan trustee from Mercantile to T.
Rowe Price. As of October 1, 1996, funds were transferred into an omnibus
account, and investment options were changed from the various Arch funds to T.
Rowe Price funds.
Administrative expenses are paid by the Plan. In 1997, the Plan changed its
allocation of administrative expenses to participant accounts from a prorated
method to allocating expenses to a participant's most stable fund.
The preparation of financial statements in conformity with generally accepted
accounting principles requires plan 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.
Certain reclassifications have been made to the 1996 financial statements to
conform to the 1997 presentation.
2. DESCRIPTION OF THE PLAN
The Plan is a contributory employee benefit plan of Jefferson Smurfit
Corporation (Company) and adopting subsidiaries and affiliates. The Plan is
composed of three components: (i) a cash or deferred compensation plan (401(k)
component); (ii) an after-tax voluntary contribution plan (ATC component); and
(iii) employer matching contributions.
26
<PAGE> 27
Jefferson Smurfit Corporation
Savings Plan
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
The Plan is administered by an Administrative Committee (Committee) of the
Company consisting of officers or other employees of the Company or its adopting
subsidiaries and affiliates. The Committee prescribes forms for use by
participants and may make administrative and procedural recommendations.
Employees eligible to participate in the Plan generally consist of all employees
of the Company and adopting subsidiaries and affiliates, except for (1) those
employees covered by a collective bargaining agreement which provides for
retirement benefits, (2) nonresident aliens, and (3) substantially all hourly
employees.
Under the 401(k) provisions, employees may elect to have a portion of their
salary deferred and contributed to the Plan to be invested in 1 or more of 15
investment options available under the Plan. The participants' ATC contributions
are invested in 1 or more of 15 investment options available under the Plan.
Contributions are made semimonthly.
Under the employer contribution provisions, each employer contributes, for each
of its employees who are participants, an amount equal to 65 percent and 60
percent of the 401(k) contributions authorized by such employee for 1997 and
1996, respectively, to a maximum of $4,750 in one calendar year, to the extent
the rate of such contributions, in effect from time to time, does not exceed 3.9
percent and 3.6 percent of the participant's compensation (matching
contributions) in 1997 and 1996, respectively. 401(k) contributions authorized
by a participant in excess of 6 percent of participant compensation for any pay
period are disregarded for purposes of matching contributions.
Participant contributions to the 401(k) plan which are made via payroll
withholdings are limited to the lesser of $9,500 or 15 percent of participant
compensation for calendar years 1997 and 1996. Participant contributions to the
ATC are limited to 15 percent of participant compensation, not to exceed 20
percent of participant compensation in total when combined with 401(k)
contributions. Total contributions credited to a participant's account (combined
401(k), ATC, and matching contributions components) are limited to the lesser of
$30,000 or 25 percent of compensation. These limitations are determined on a
calendar year basis.
Terminating participants of the Plan are paid the current value of their 401(k)
account, ATC account, and the vested portion of their employer match account.
Participants may elect a cash distribution or a stock distribution from the JS
Common Stock Fund or the Mobil Stock Fund. All other distributions are in cash.
27
<PAGE> 28
Jefferson Smurfit Corporation
Savings Plan
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
Each participant has a fully vested and nonforfeitable interest in the value of
his or her proportional share of the investment funds in which his or her 401(k)
contributions and ATC contributions are invested. Employer contributions vest
over a five-year period based on participant years of service. The nonvested
portion of a terminating participant's account constitutes a forfeiture and is
applied to reduce future employer contributions.
If a participant, who has forfeited all or a part of his or her account, is
reemployed before 60 months have elapsed after his or her employment ended, any
amount he or she forfeited will be restored to his or her account from amounts
forfeited currently by other participants.
Upon enrollment in the Plan, contributions may be directed into the following
funds by the participant or employer:
JS Common Stock Fund - Effective August 1, 1994, all employer
contributions are invested in shares of Jefferson Smurfit Corporation
common stock. Employees may elect to invest in shares of Jefferson
Smurfit Corporation common stock.
JS Group Stock Fund - Employer contributions prior to August 1, 1994
were invested in Jefferson Smurfit Group plc common stock.
Arch Growth and Income Fund - Employee contributions prior to October
1, 1996 were invested in shares of a registered investment company that
invests in common stocks of larger corporations.
Arch Balanced Fund - Employee contributions prior to October 1, 1996
were invested in shares of a registered investment company that invests
in common stocks, bonds, and money market securities to obtain a stable
long-term total return.
Interest Income Fund - Employee contributions prior to October 1, 1996
were invested in shares of a registered investment company that invests
in insurance contracts which provide a specified rate of investment
income for a specified period of time and under which the payment of
principal is guaranteed.
Aetna VIP Contract Fund - After-tax employee contributions prior to
January 1, 1997 were invested in "Immediate Participation Contracts"
issued by a legal reserve life insurance company selected by the
Company.
28
<PAGE> 29
Jefferson Smurfit Corporation
Savings Plan
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
Arch Emerging Growth Fund - Employee contributions prior to October 1,
1996 were invested in shares of a registered investment company that
invests in the common stock of emerging or established small to
medium-sized companies with a primary objective of capital appreciation
rather than current income.
Arch International Fund - Employee contributions prior to October 1,
1996 were invested in shares of a registered investment company that
invests in a diversified portfolio of international stocks (non-U.S.
companies) operating in a variety of industries.
T. Rowe Price Equity Income Fund - Effective October 1, 1996, employee
contributions are invested in shares of a registered investment company
that invests in common stocks of established companies that have
long-term capital appreciation and dividend income.
T. Rowe Price Personal Strategy Balanced Fund - Effective October 1,
1996, employee contributions are invested in shares of a registered
investment company that invests in common stocks, bonds, and money
market securities to provide return over time consistent with an
emphasis on both capital appreciation and income.
T. Rowe Price New Horizons Fund - Effective October 1, 1996, employee
contributions are invested in shares of a registered investment company
that invests in common stocks of small growth companies in a broad
range of industries.
T. Rowe Price International Stock Fund - Effective October 1, 1996,
employee contributions are invested in shares of a registered
investment company that invests in common stocks of established
non-U.S. companies.
Fidelity Contra Fund - Effective January 1, 1997, employee
contributions are invested in shares of a registered investment company
that invests in common stocks that are considered undervalued with
potential for capital growth.
Fidelity Value Fund - Effective January 1, 1997, employee contributions
are invested in shares of a registered investment company that invests
in the stock of companies that possess valuable assets or are
considered undervalued.
29
<PAGE> 30
Jefferson Smurfit Corporation
Savings Plan
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
Putnam New Opportunities Fund - Effective January 1, 1997, employee
contributions are invested in shares of a registered investment company
that invests in stocks of emerging industries offering long-term
growth.
T. Rowe Price Blended Stable Value Fund - Effective January 1, 1997,
employee contributions are invested in shares of a registered
investment company that invests in high-quality insurance companies and
banks seeking to maintain a stable $1 per share price.
Equity Index Trust (S&P 500) - Effective January 1, 1997, employee
contributions are invested in shares of the stocks that make up the
Standard & Poor's 500 Index.
T. Rowe Price Personal Strategy Income Fund - Effective January 1,
1997, employee contributions are invested in shares of a registered
investment company that invests in bonds, common stocks, and money
market securities to provide the highest total return over time
consistent with a primary emphasis on income and a secondary emphasis
on capital appreciation.
T. Rowe Price Personal Strategy Growth Fund - Effective January 1,
1997, employee contributions are invested in shares of a registered
investment company that invests in common stocks, bonds, and money
market securities to provide the highest total return over time with an
emphasis on capital appreciation.
T. Rowe Price Summit Cash Reserves Fund - Effective January 1, 1997,
employee contributions are invested in shares of a registered
investment company that invests in high-quality money market securities
seeking to maintain a stable $1 per share price.
T. Rowe Price Spectrum Income Fund - Effective January 1, 1997,
employee contributions are invested in shares of a registered
investment company that invests in four domestic bond funds, an
international bond fund, an income-oriented bond fund, and a money
market fund to provide a high level of current income.
30
<PAGE> 31
Jefferson Smurfit Corporation
Savings Plan
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
T. Rowe Price Blue Chip Growth Fund - Effective January 1, 1997,
employee contributions are invested in shares of a registered
investment company that invests in common stocks of large, well-known
companies in growing markets.
In addition to the above, former employees of Container Corporation of America
may have a portion of their plan investment held in shares of Mobil Corporation
common stock. Contributions are no longer permitted into this fund.
3. INVESTMENTS
The fair value of individual investments that represent 5 percent or more of the
Plan's net assets is as follows:
<TABLE>
<CAPTION>
DECEMBER 31
1997 1996
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C>
Jefferson Smurfit Corporation common stock
(1,954,915 and 1,538,654 shares) $ 27,613,176 $24,715,398
JS Group shares
(9,568,834 and 10,161,940 shares) 26,666,426 30,638,249
Mobil Corporation common stock shares
(1,445,115 and 763,767 shares) 104,319,212 93,370,515
T. Rowe Price Equity Income Fund
(4,134,352 and 3,787,329 shares) 107,782,570 85,366,398
T. Rowe Price Personal Strategy Balanced Fund
(1,683,977 and 1,646,148 shares) 24,956,545 21,877,304
T. Rowe Price Blended Stable Value Fund
(57,834,386 shares) 57,834,386 -
</TABLE>
31
<PAGE> 32
Jefferson Smurfit Corporation
Savings Plan
Notes to Financial Statements (continued)
4. PLAN TAX STATUS
The Internal Revenue Service ruled on May 30, 1996 that the Plan continues to
qualify under Section 401(a) and meets the requirements under Section 401(k) of
the Internal Revenue Code (IRC), and therefore, the related trust is not subject
to tax under present income tax law. The Administrative Committee is not aware
of any course of action or series of events that has occurred that might
adversely affect the Plan's qualified status.
Participants are not subject to federal income tax on amounts contributed to
their 401(k) or employer matching contribution accounts under the Plan or on
earnings attributable to such contributions, until such time as these amounts
are distributed to or withdrawn by them.
5. YEAR 2000 (UNAUDITED)
Computer programs that have time-sensitive software may recognize a date using
"00" as the year 1900 rather than the year 2000. Beginning in the year 2000,
this could result in a system failure or miscalculations causing disruptions of
operations, including a temporary inability to process transactions or engage in
normal business activities.
The Plan is completing testing for its internal systems that impact the
processing of employee benefits. The only major system related to the Plan that
is noncompliant is the payroll system, which is currently in the process of
being updated to a new year 2000-compliant system. The payroll system and all
other systems are expected to be year 2000-complaint by the end of 1998.
The Plan has initiated formal communications with its service providers to
determine the extent to which the Plan's interface systems are vulnerable to
those third parties' failure to resolve their own year 2000 issues. This process
is expected to be completed near the end of 1998.
The entire cost of the year 2000 inquiries and the systems updates are being
paid by the Company with no effect on plan assets. The Plan believes the
necessary modifications and replacement of computer systems will be completed in
a timely manner, and as a result, the year 2000 issue is not expected to pose
significant operational or financial problems for the Plan.
32
<PAGE> 33
SUPPLEMENTAL SCHEDULES
33
<PAGE> 34
Jefferson Smurfit Corporation Savings Plan
Line 27a - Assets Held for Investment
December 31, 1997
<TABLE>
<CAPTION>
SHARES/ CURRENT
DESCRIPTION UNITS VALUE COST
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Jefferson Smurfit Corporation Common Stock* 1,954,915 $ 27,613,176 $ 28,236,583
JS Group Stock Fund* 9,568,834 26,666,426 23,115,007
Mobil Stock Fund 1,445,115 104,319,212 33,493,240
T. Rowe Price Equity Income Fund 4,134,352 107,782,570 95,257,910
T. Rowe Price Personal Strategy Balanced Fund 1,683,977 24,956,545 22,697,717
T. Rowe Price New Horizons Fund 703,389 16,388,957 15,362,951
T. Rowe Price International Stock Fund 356,464 4,783,744 5,000,733
Fidelity Contra Fund 28,337 1,321,344 1,321,774
Fidelity Value Fund 17,906 967,629 1,049,995
Putnam New Opportunities Fund 64,810 3,153,006 2,851,659
T. Rowe Price Blended Stable Value Fund 57,834,386 57,834,386 57,834,386
Equity Index Trust (S&P 500) 151,787 3,761,275 3,320,368
T. Rowe Price Personal Strategy Income Fund 89,798 1,117,981 1,097,082
T. Rowe Price Personal Strategy Growth Fund 78,871 1,302,955 1,224,823
T. Rowe Price Summit Cash Reserves Fund 1,007,171 1,007,171 1,007,171
T. Rowe Price Spectrum Income Fund 134,380 1,566,866 1,542,000
T. Rowe Price Blue Chip Growth Fund 264,115 6,383,661 5,588,381
Participant Loans* - 6,015,381 -
--------------------------------------
$396,942,285 $300,001,780
======================================
</TABLE>
* Parties in interest. The interest rate on participant loans issued during the
year ended December 31, 1997 ranged from 8.0 percent to 10.3 percent.
34
<PAGE> 35
Jefferson Smurfit Corporation Savings Plan
Line 27d - Transactions or Series of Transactions in Excess of
5% of the Current Value of Plan Assets
Year ended December 31, 1997
<TABLE>
<CAPTION>
CURRENT VALUE
OF ASSET ON
DESCRIPTION OF PURCHASE SELLING COST TRANSACTION NET GAIN
IDENTITY OF PARTY INVOLVED ASSETS PRICE PRICE OF ASSET DATE (LOSS)
- -----------------------------------------------------------------------------------------------------------------------------------
Category (iii) - Series of transactions in excess of 5% of the current value of plan assets
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Jefferson Smurfit Common Stock Company stock $ 30,914,456 $ - $ 30,914,456 $ 30,914,456 $ -
Company stock (2,837,403) (3,296,282) (2,837,403) (3,296,282) 458,879
Jefferson Smurfit Group Stock Company stock 24,581,900 - 24,581,900 24,581,900 -
Company stock (1,469,996) (1,751,802) (1,469,996) 1,751,802 281,806
Mobil Stock Company stock 33,459,377 - 33,459,377 33,459,377 -
Company stock (2,957,246) (9,610,904) (2,957,246) (9,610,904) 6,653,658
Putnam New Opportunities Fund Mutual fund 3,240,514 - 3,240,514 3,240,514 -
Mutual fund (407,332) (439,725) (407,332) (439,725) 32,393
T. Rowe Price Blended Stable GIC 69,526,439 - 69,526,439 69,526,439 -
Value Fund GIC (1,690,614) (1,690,614) (1,690,614) (1,690,614) -
T. Rowe Price Personal Strategy Mutual fund 26,367,816 - 26,367,816 26,367,816 -
Balanced Fund Mutual fund (3,731,910) (3,929,997) (3,731,910) (3,929,997) 198,087
T. Rowe Price New Horizons Fund Mutual fund 19,150,355 - 19,150,355 19,150,355 -
Mutual fund (3,777,676) (3,751,267) (3,777,676) (3,751,267) 26,409
T. Rowe Price Equity Income Fund Mutual fund 105,894,489 - 105,894,489 105,894,489 -
Mutual fund (11,089,976) (12,111,723) (11,089,976) (12,111,723) 1,021,747
</TABLE>
Categories (i), (ii), and (iv) were not applicable.
35
<PAGE> 36
Financial Statements
and Supplemental Schedules
Jefferson Smurfit Corporation
Hourly Savings Plan
Years ended December 31, 1997 and 1996
with Report of Independent Auditors
36
<PAGE> 37
Jefferson Smurfit Corporation
Hourly Savings Plan
Financial Statements
and Supplemental Schedules
Years ended December 31, 1997 and 1996
CONTENTS
Report of Independent Auditors............................................ 38
Financial Statements
Statements of Net Assets Available for Plan Benefits...................... 39
Statements of Changes in Net Assets Available for Plan Benefits........... 46
Notes to Financial Statements............................................. 54
Supplemental Schedules
Line 27a - Assets Held for Investment..................................... 62
Line 27d - Transactions or Series of Transactions in Excess of
5% of the Current Value of Plan Assets................................. 63
37
<PAGE> 38
Report of Independent Auditors
Administrative Committee
Jefferson Smurfit Corporation
Retirement Plans
We have audited the accompanying statements of net assets available for plan
benefits of Jefferson Smurfit Corporation Hourly Savings Plan as of December 31,
1997 and 1996, and the related statements of changes in net 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 net assets available for plan benefits at December
31, 1997 and 1996, and the changes in its net 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 financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment as of December 31, 1997 and transactions or series of
transactions in excess of 5 percent of the current value of plan assets 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 plan benefits and the statements of changes in net assets
available for plan benefits is presented for purposes of additional analysis
rather than to present the net assets available for plan benefits and 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
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.
/s/ Ernst & Young LLP
June 19, 1998
38
<PAGE> 39
Jefferson Smurfit Corporation Hourly Savings Plan
Statements of Net Assets Available for Plan Benefits
December 31, 1997
<TABLE>
<CAPTION>
ARCH T. ROWE PRICE
JS JS GROWTH T. ROWE PRICE PERSONAL
COMMON GROUP AND EQUITY STRATEGY
STOCK STOCK INCOME INCOME BALANCED
FUND FUND FUND FUND FUND SUBTOTAL
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value $6,310,843 $1,398,913 $ - $18,030,372 $6,581,829 $32,321,957
-------------------------------------------------------------------------------------------------
Net assets available for
plan benefits $6,310,843 $1,398,913 $ - $18,030,372 $6,581,829 $32,321,957
=================================================================================================
</TABLE>
See accompanying notes.
39
<PAGE> 40
Jefferson Smurfit Corporation Hourly Savings Plan
Statements of Net Assets Available for Plan Benefits (continued)
December 31, 1997
<TABLE>
<CAPTION>
T. ROWE PRICE T. ROWE PRICE
PREVIOUS INTEREST NEW INTERNATIONAL
PAGE INCOME HORIZONS STOCK FIDELITY
SUBTOTAL FUND FUND FUND CONTRA FUND SUBTOTAL
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments, at fair value $32,321,957 $ - $7,457,600 $1,158,467 $223,177 $41,161,201
-------------------------------------------------------------------------------------------------
Net assets available for
plan benefits $32,321,957 $ - $7,457,600 $1,158,467 $223,177 $41,161,201
=================================================================================================
</TABLE>
See accompanying notes.
40
<PAGE> 41
Jefferson Smurfit Corporation Hourly Savings Plan
Statements of Net Assets Available for Plan Benefits (continued)
December 31, 1997
<TABLE>
<CAPTION>
PREVIOUS PUTNAM NEW T. ROWE PRICE EQUITY
PAGE FIDELITY OPPORTUNITIES BLENDED STABLE INDEX TRUST
SUBTOTAL VALUE FUND FUND VALUE FUND (S&P 500) SUBTOTAL
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value $41,161,201 $57,612 $576,468 $7,895,802 $461,272 $50,152,355
-------------------------------------------------------------------------------------------------
Net assets available for
plan benefits $41,161,201 $57,612 $576,468 $7,895,802 $461,272 $50,152,355
=================================================================================================
</TABLE>
See accompanying notes.
41
<PAGE> 42
Jefferson Smurfit Corporation Hourly Savings Plan
Statements of Net Assets Available for Plan Benefits (continued)
December 31, 1997
<TABLE>
<CAPTION>
T. ROWE PRICE T. ROWE PRICE
PREVIOUS PERSONAL PERSONAL T. ROWE PRICE T. ROWE PRICE
PAGE STRATEGY STRATEGY SUMMIT CASH SPECTRUM
SUBTOTAL INCOME FUND GROWTH FUND RESERVES FUND INCOME FUND SUBTOTAL
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value $50,152,355 $36,727 $150,697 $177,422 $108,157 $50,625,358
-------------------------------------------------------------------------------------------------
Net assets available for
plan benefits $50,152,355 $36,727 $150,697 $177,422 $108,157 $50,625,358
=================================================================================================
</TABLE>
See accompanying notes.
42
<PAGE> 43
Jefferson Smurfit Corporation Hourly Savings Plan
Statements of Net Assets Available for Plan Benefits (continued)
December 31, 1997
<TABLE>
<CAPTION>
PREVIOUS T. ROWE PRICE
PAGE BLUE CHIP GROWTH
SUBTOTAL FUND TOTAL
----------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments, at fair value $50,625,358 $1,392,823 $52,018,181
----------------------------------------------------
Net assets available for
plan benefits $50,625,358 $1,392,823 $52,018,181
====================================================
</TABLE>
See accompanying notes.
43
<PAGE> 44
Jefferson Smurfit Corporation Hourly Savings Plan
Statements of Net Assets Available for Plan Benefits (continued)
December 31, 1996
<TABLE>
<CAPTION>
ARCH T. ROWE PRICE
JS JS GROWTH AND EQUITY ARCH
COMMON GROUP INCOME INCOME BALANCED
STOCK FUND STOCK FUND FUND FUND FUND SUBTOTAL
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value $5,077,748 $1,560,985 $ - $11,397,912 $ - $18,036,645
Receivables:
Accrued investment income
receivable 18 126 189 443,466 53 443,852
Due from other funds 422 - - - - 422
-----------------------------------------------------------------------------------------------
440 126 189 443,466 53 444,274
Cash and cash equivalents 60,399 18,534 1,804 142,098 6,479 229,314
-----------------------------------------------------------------------------------------------
Total assets 5,138,587 1,579,645 1,993 11,983,476 6,532 18,710,233
LIABILITIES
Accrued administrative fees 7,917 - - 18,464 12 26,393
Due to other funds - 422 - - 6,520 6,942
-----------------------------------------------------------------------------------------------
Total liabilities 7,917 422 - 18,464 6,532 33,335
-----------------------------------------------------------------------------------------------
Net assets available for
plan benefits $5,130,670 $1,579,223 $1,993 $11,965,012 $ - $18,676,898
===============================================================================================
</TABLE>
See accompanying notes.
44
<PAGE> 45
Jefferson Smurfit Corporation Hourly Savings Plan
Statements of Net Assets Available for Plan Benefits (continued)
December 31, 1996
<TABLE>
<CAPTION>
T. ROWE PRICE T. ROWE PRICE T. ROWE PRICE
PREVIOUS PERSONAL INTEREST NEW INTERNATIONAL
PAGE STRATEGY INCOME HORIZONS STOCK
SUBTOTAL BALANCED FUND FUND FUND FUND TOTAL
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value $18,036,645 $4,759,499 $6,883,690 $4,903,802 $734,531 $35,318,167
Receivables:
Accrued investment income
receivable 443,852 114,600 3,178 493,308 20,226 1,075,164
Due from other funds 422 6,520 - - - 6,942
---------------------------------------------------------------------------------------------
444,274 121,120 3,178 493,308 20,226 1,082,106
Cash and cash equivalents 229,314 53,795 76,286 87,974 16,238 463,607
---------------------------------------------------------------------------------------------
Total assets 18,710,233 4,934,414 6,963,154 5,485,084 770,995 36,863,880
LIABILITIES
Accrued administrative fees 26,393 7,593 16,834 8,450 1,188 60,458
Due to other funds 6,942 - - - - 6,942
---------------------------------------------------------------------------------------------
Total liabilities 33,335 7,593 16,834 8,450 1,188 67,400
---------------------------------------------------------------------------------------------
Net assets available for plan
benefits $18,676,898 $4,926,821 $6,946,320 $5,476,634 $769,807 $36,796,480
=============================================================================================
</TABLE>
See accompanying notes.
45
<PAGE> 46
Jefferson Smurfit Corporation Hourly Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits
Year ended December 31, 1997
<TABLE>
<CAPTION>
T. ROWE PRICE
JS JS ARCH T. ROWE PRICE PERSONAL
COMMON GROUP GROWTH AND EQUITY STRATEGY
STOCK STOCK INCOME INCOME BALANCED
FUND FUND FUND FUND FUND SUBTOTAL
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees $ 348,322 $ - $ - $ 3,334,620 $1,222,108 $ 4,905,050
Employer 1,910,160 - - - - 1,910,160
Net investment income:
Interest on guaranteed group
annuity contracts - - - - - -
Other investment income - 22,928 - 1,721,965 321,710 2,066,603
-------------------------------------------------------------------------------------------------
2,258,482 22,928 - 5,056,585 1,543,818 8,881,813
Net realized and unrealized
appreciation
(depreciation) of
investments (809,405) (116,714) - 1,998,643 603,828 1,676,352
Transfers by participants (47,416) (4,370) (1,993) (395,669) (241,953) (691,401)
Transfers to JS Common Stock
Fund from JS Group Stock Fund 22,928 (22,928) - - - -
Transfers of participant
accounts (to)/from Jefferson
Smurfit Savings Plan and
other plans (29,148) (8,063) - (39,323) (9,867) (86,401)
Forfeitures (4,656) (1,186) - - - (5,842)
Withdrawals by participants (210,132) (49,977) - (535,777) (227,888) (1,023,774)
Administrative expenses (480) - - (19,099) (12,930) (32,509)
-------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets available for
plan benefits 1,180,173 (180,310) (1,993) 6,065,360 1,655,008 8,718,238
Net assets available for plan
benefits, beginning of year 5,130,670 1,579,223 1,993 11,965,012 4,926,821 23,603,719
-------------------------------------------------------------------------------------------------
Net assets available for plan
benefits, end of year $6,310,843 $1,398,913 $ - $18,030,372 $6,581,829 $32,321,957
=================================================================================================
</TABLE>
See accompanying notes.
46
<PAGE> 47
Jefferson Smurfit Corporation Hourly Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits (continued)
Year ended December 31, 1997
<TABLE>
<CAPTION>
PREVIOUS INTEREST T. ROWE PRICE T. ROWE PRICE
PAGE INCOME NEW HORIZONS INTERNATIONAL FIDELITY
SUBTOTAL FUND FUND STOCK FUND CONTRA FUND SUBTOTAL
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees $ 4,905,050 $ - $2,169,060 $ 475,652 $ 90,640 $ 7,640,402
Employer 1,910,160 - - - - 1,910,160
Net investment income:
Interest on guaranteed
group annuity contracts - - - - - -
Other investment income 2,066,603 - 178,918 60,415 18,157 2,324,093
--------------------------------------------------------------------------------------------------
8,881,813 - 2,347,978 536,067 108,797 11,874,655
Net realized and unrealized
appreciation
(depreciation) of
investments 1,676,352 - 418,049 (48,212) 5,142 2,051,331
Transfers by participants (691,401) (6,946,320) (487,491) (51,166) 111,762 (8,064,616)
Transfers to JS Common Stock
Fund from JS Group Stock
Fund - - - - - -
Transfers of participant
accounts (to)/from
Jefferson Smurfit Savings
Plan and other plans (86,401) - (15,895) (1,245) - (103,541)
Forfeitures (5,842) - - - - (5,842)
Withdrawals by participants (1,023,774) - (279,217) (45,748) (2,253) (1,350,992)
Administrative expenses (32,509) - (2,458) (1,036) (271) (36,274)
--------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets available for
plan benefits 8,718,238 (6,946,320) 1,980,966 388,660 223,177 4,364,721
Net assets available for plan
benefits, beginning of year 23,603,719 6,946,320 5,476,634 769,807 - 36,796,480
--------------------------------------------------------------------------------------------------
Net assets available for plan
benefits, end of year $32,321,957 $ - $7,457,600 $1,158,467 $223,177 $41,161,201
==================================================================================================
</TABLE>
See accompanying notes.
47
<PAGE> 48
Jefferson Smurfit Corporation Hourly Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits (continued)
Year ended December 31, 1997
<TABLE>
<CAPTION>
T. ROWE PRICE
PREVIOUS PUTNAM NEW BLENDED EQUITY
PAGE FIDELITY VALUE OPPORTUNITIES STABLE VALUE INDEX TRUST
SUBTOTAL FUND FUND FUND (S&P 500) SUBTOTAL
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees $ 7,640,402 $25,893 $231,432 $1,435,503 $123,067 $ 9,456,297
Employer 1,910,160 - - - - 1,910,160
Net investment income:
Interest on guaranteed
group annuity contracts - - - 442,259 - 442,259
Other investment income 2,324,093 7,246 12,121 - - 2,343,460
-----------------------------------------------------------------------------------------------
11,874,655 33,139 243,553 1,877,762 123,067 14,152,176
Net realized and unrealized
appreciation
(depreciation) of
investments 2,051,331 (3,261) 57,828 - 45,411 2,151,309
Transfers by participants (8,064,616) 28,605 293,906 6,508,158 297,890 (936,057)
Transfers to JS Common Stock
Fund from JS Group Stock
Fund - - - - - -
Transfers of participant
accounts (to)/from
Jefferson Smurfit Savings
Plan and other plans (103,541) - (16,374) (58,163) - (178,078)
Forfeitures (5,842) - - - - (5,842)
Withdrawals by participants (1,350,992) (795) (2,260) (418,549) (4,537) (1,777,133)
Administrative expenses (36,274) (76) (185) (13,406) (559) (50,500)
-----------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets available for
plan benefits 4,364,721 57,612 576,468 7,895,802 461,272 13,355,875
Net assets available for plan
benefits, beginning of year 36,796,480 - - - - 36,796,480
-----------------------------------------------------------------------------------------------
Net assets available for plan
benefits, end of year $41,161,201 $57,612 $576,468 $7,895,802 $461,272 $50,152,355
===============================================================================================
</TABLE>
See accompanying notes.
48
<PAGE> 49
Jefferson Smurfit Corporation Hourly Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits (continued)
Year ended December 31, 1997
<TABLE>
<CAPTION>
T. ROWE PRICE T. ROWE PRICE
PREVIOUS PERSONAL PERSONAL T. ROWE PRICE T. ROWE PRICE
PAGE STRATEGY STRATEGY SUMMIT CASH SPECTRUM
SUBTOTAL INCOME FUND GROWTH FUND RESERVES FUND INCOME FUND SUBTOTAL
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees $ 9,456,297 $25,484 $ 70,631 $ 51,928 $ 55,383 $ 9,659,723
Employer 1,910,160 - - - - 1,910,160
Net investment income:
Interest on guaranteed
group annuity contracts 442,259 - - - - 442,259
Other investment income 2,343,460 1,557 3,888 16,259 4,297 2,369,461
--------------------------------------------------------------------------------------------
14,152,176 27,041 74,519 68,187 59,680 14,381,603
Net realized and unrealized
appreciation
(depreciation) of
investments 2,151,309 1,133 6,035 - 1,927 2,160,404
Transfers by participants (936,057) 8,863 70,853 59,588 47,868 (748,885)
Transfers to JS Common Stock
Fund from JS Group Stock
Fund - - - - - -
Transfers of participant
accounts (to)/from
Jefferson Smurfit Savings
Plan and other plans (178,078) - - 51,021 - (127,057)
Forfeitures (5,842) - - - - (5,842)
Withdrawals by participants (1,777,133) - (187) (200) (626) (1,778,146)
Administrative expenses (50,500) (310) (523) (1,174) (692) (53,199)
--------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets available for
plan benefits 13,355,875 36,727 150,697 177,422 108,157 13,828,878
Net assets available for plan
benefits, beginning of year 36,796,480 - - - - 36,796,480
--------------------------------------------------------------------------------------------
Net assets available for plan
benefits, end of year $50,152,355 $36,727 $150,697 $177,422 $108,157 $50,625,358
============================================================================================
</TABLE>
See accompanying notes.
49
<PAGE> 50
Jefferson Smurfit Corporation Hourly Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits (continued)
Year ended December 31, 1997
<TABLE>
<CAPTION>
PREVIOUS T. ROWE PRICE
PAGE BLUE CHIP GROWTH
SUBTOTAL FUND TOTAL
----------------------------------------------------------
<S> <C> <C> <C>
Contributions:
Employees $ 9,659,723 $ 526,805 $10,186,528
Employer 1,910,160 - 1,910,160
Net investment income:
Interest on guaranteed group
annuity contracts 442,259 - 442,259
Other investment income 2,369,461 7,900 2,377,361
----------------------------------------------------------
14,381,603 534,705 14,916,308
Net realized and unrealized
appreciation
(depreciation) of
investments 2,160,404 148,815 2,309,219
Transfers by participants (748,885) 748,885 -
Transfers to JS Common Stock
Fund from JS Group Stock Fund - - -
Transfers of participant
accounts (to)/from Jefferson
Smurfit Savings Plan and
other plans (127,057) (26,448) (153,505)
Forfeitures (5,842) - (5,842)
Withdrawals by participants (1,778,146) (11,370) (1,789,516)
Administrative expenses (53,199) (1,764) (54,963)
----------------------------------------------------------
Net increase (decrease) in
net assets available for
plan benefits 13,828,878 1,392,823 15,221,701
Net assets available for plan
benefits, beginning of year 36,796,480 - 36,796,480
----------------------------------------------------------
Net assets available for plan
benefits, end of year $50,625,358 $1,392,823 $52,018,181
==========================================================
</TABLE>
See accompanying notes.
50
<PAGE> 51
Jefferson Smurfit Corporation Hourly Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits (continued)
Year ended December 31, 1996
<TABLE>
<CAPTION>
JS
COMMON ARCH GROWTH T. ROWE PRICE ARCH
STOCK JS GROUP AND INCOME EQUITY INCOME BALANCED
FUND STOCK FUND FUND FUND FUND SUBTOTAL
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees $ 406,291 $ - $ 2,442,817 $ 825,545 $ 984,258 $ 4,658,911
Employer 1,771,590 - - - - 1,771,590
Net investment income 2,566 35,396 101,318 443,466 84,907 667,653
--------------------------------------------------------------------------------------------
2,180,447 35,396 2,544,135 1,269,011 1,069,165 7,098,154
Net realized and unrealized
appreciation
(depreciation) of
investments 1,636,606 338,838 1,447,524 (61,976) 330,207 3,691,199
Transfers by participants 6,917 (886) (10,348,449) 10,784,880 (4,524,852) (4,082,390)
Transfers to JS Common Stock
Fund from JS Group Stock
Fund 35,902 (35,902) - - - -
Forfeitures (2,322) (422) - - - (2,744)
Withdrawals by participants (71,720) (53,429) (598,820) (8,439) (242,673) (975,081)
Administrative expenses (32,206) - (21,740) (18,464) (10,168) (82,578)
--------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets available for
plan benefits 3,753,624 283,595 (6,977,350) 11,965,012 (3,378,321) 5,646,560
Net assets available for plan
benefits, beginning of year 1,377,046 1,295,628 6,979,343 - 3,378,321 13,030,338
--------------------------------------------------------------------------------------------
Net assets available for plan
benefits, end of year $5,130,670 $1,579,223 $ 1,993 $11,965,012 $ - $18,676,898
============================================================================================
</TABLE>
See accompanying notes.
51
<PAGE> 52
Jefferson Smurfit Corporation Hourly Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits (continued)
Year ended December 31, 1996
<TABLE>
<CAPTION>
T. ROWE PRICE ARCH T. ROWE PRICE
PREVIOUS PERSONAL INTEREST EMERGING NEW
PAGE STRATEGY INCOME GROWTH HORIZONS
SUBTOTAL BALANCED FUND FUND FUND FUND SUBTOTAL
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees $ 4,658,911 $ 303,365 $1,606,457 $ 1,697,846 $ 536,214 $ 8,802,793
Employer 1,771,590 - - - - 1,771,590
Net investment income 667,653 114,600 5,386 7,585 493,309 1,288,533
----------------------------------------------------------------------------------------------
7,098,154 417,965 1,611,843 1,705,431 1,029,523 11,862,916
Net realized and unrealized
appreciation
(depreciation) of
investments 3,691,199 28,684 380,923 370,911 (482,503) 3,989,214
Transfers by participants (4,082,390) 4,515,609 (175,641) (5,226,210) 4,964,018 (4,614)
Transfers to JS Common Stock
Fund from JS Group Stock
Fund - - - - - -
Forfeitures (2,744) - - - - (2,744)
Withdrawals by participants (975,081) (27,844) (530,725) (200,529) (21,640) (1,755,819)
Administrative expenses (82,578) (7,593) (19,745) (8,367) (12,764) (131,047)
----------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets available for
plan benefits 5,646,560 4,926,821 1,266,655 (3,358,764) 5,476,634 13,957,906
Net assets available for plan
benefits, beginning of year 13,030,338 - 5,679,665 3,358,764 - 22,068,767
----------------------------------------------------------------------------------------------
Net assets available for plan
benefits, end of year $18,676,898 $4,926,821 $6,946,320 $ - $5,476,634 $36,026,673
==============================================================================================
</TABLE>
See accompanying notes.
52
<PAGE> 53
Jefferson Smurfit Corporation Hourly Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits (continued)
Year ended December 31, 1996
<TABLE>
<CAPTION>
PREVIOUS ARCH T. ROWE PRICE
PAGE INTERNATIONAL INTERNATIONAL
SUBTOTAL FUND STOCK FUND TOTAL
-----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Contributions:
Employees $ 8,802,793 $ 299,733 $107,340 $ 9,209,866
Employer 1,771,590 - - 1,771,590
Net investment income 1,288,533 376 20,226 1,309,135
-----------------------------------------------------------------------
11,862,916 300,109 127,566 12,290,591
Net realized and unrealized
appreciation (depreciation)
of investments 3,989,214 32,320 7,755 4,029,289
Transfers by participants (4,614) (636,772) 641,386 -
Transfers to JS Common
Stock Fund from JS Group
Stock Fund - - - -
Forfeitures (2,744) - - (2,744)
Withdrawals by participants (1,755,819) (21,572) (4,212) (1,781,603)
Administrative expenses (131,047) (2,446) (2,688) (136,181)
-----------------------------------------------------------------------
Net increase (decrease) in net
assets available for plan
benefits 13,957,906 (328,361) 769,807 14,399,352
Net assets available for plan
benefits, beginning of year 22,068,767 328,361 - 22,397,128
-----------------------------------------------------------------------
Net assets available for plan
benefits, end of year $36,026,673 $ - $769,807 $36,796,480
=======================================================================
</TABLE>
See accompanying notes.
53
<PAGE> 54
Jefferson Smurfit Corporation
Hourly Savings Plan
Notes to Financial Statements
December 31, 1997
1. SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Jefferson Smurfit Corporation Hourly Savings
Plan (the Plan) are reported on the accrual basis. The current values of
investments have been determined by T. Rowe Price as trustee for 1997 and by
Mercantile Bank of St. Louis, N.A., (Mercantile) for 1996 as trustee and have
been based on closing prices if traded on national stock exchanges or bid prices
for bonds. The differences between the current value and the cost of investments
are reflected in the statements of changes in net assets available for plan
benefits as part of net realized and unrealized appreciation (depreciation) of
investments. The cost of securities sold is based on the weighted average
method.
As of January 1, 1997, the Plan changed the plan trustee from Mercantile to T.
Rowe Price. As of October 1, 1996, funds were transferred into an omnibus
account, and investment options were changed from the various Arch funds to T.
Rowe Price funds.
Administrative expenses are paid by the Plan. In 1997, the Plan changed the
allocation of administrative expenses to participant accounts from a prorated
method to allocating expenses to a participant's most stable fund.
The preparation of financial statements in conformity with generally accepted
accounting principles requires plan 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.
Certain reclassifications have been made to the 1996 financial statements to
conform to the 1997 presentation.
2. DESCRIPTION OF THE PLAN
The Plan was established January 1, 1992 and is a contributory employee benefit
plan of Jefferson Smurfit Corporation (Company) and adopting subsidiaries and
affiliates. The Plan is composed of two components: (i) a cash or deferred
compensation plan (401(k) component) and (ii) employer matching contributions.
The Plan is administered by an Administrative Committee (Committee) of the
Company consisting of officers or other employees of the Company or its adopting
subsidiaries and affiliates. The Committee prescribes forms for use by
participants and may make administrative and procedural recommendations.
54
<PAGE> 55
Jefferson Smurfit Corporation
Hourly Savings Plan
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
Employees eligible to participate in the Plan consist of those hourly employees
of the Company and adopting subsidiaries and affiliates to whom the terms of the
Plan have been extended including those covered by a collective bargaining
agreement which provides for participation in the Plan.
Under the 401(k) provisions, employees may elect to have a portion of their
wages deferred and contributed to the Plan to be invested in one or more of 15
investment options available under the Plan. Contributions are made every two
weeks or weekly depending upon the plant location.
For those employee groups covered by a collective bargaining agreement providing
for employer contributions, each employer contributes, for each of its employees
who are participants, an amount equal to 50 percent of the 401(k) contributions
authorized by such employee to a maximum dollar amount during one calendar year,
as provided in the collective bargaining agreement.
Participant contributions to the 401(k) which are made via payroll withholdings
are limited to the lesser of $9,500 or 15 percent of participant compensation
for 1997 and 1996. Total contributions credited to a participant's account
(combined 401(k) and matching contributions components) are limited to the
lesser of $30,000 or 25 percent of compensation. These limitations are
determined on a calendar year basis.
Terminated participants of the Plan are paid the current value of their 401(k)
account and the vested portion of their employer match account. Participants may
elect a cash distribution or a stock distribution from the JS Common Stock Fund.
All other distributions are in cash.
Each participant has a fully vested and nonforfeitable interest in the value of
his or her proportional share of the investment funds in which his or her 401(k)
contributions are invested. Employer contributions vest over a five-year period
based on participant years of service. The nonvested portion of a terminating
participant's account constitutes a forfeiture and is applied to reduce future
employer contributions. If a participant, who has forfeited all or a part of his
or her account, is reemployed before 60 months have elapsed after his or her
employment ended, any amount he or she forfeited will be restored to his or her
account from amounts forfeited currently by other participants.
55
<PAGE> 56
Jefferson Smurfit Corporation
Hourly Savings Plan
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
Upon enrollment in the Plan, contributions may be directed into the following
funds by the participant or employer:
JS Common Stock Fund - Effective August 1, 1994, all employer contributions
are invested in shares of Jefferson Smurfit Corporation common stock.
Effective January 1, 1995, employees may elect to invest in shares of
Jefferson Smurfit Corporation common stock.
JS Group Stock Fund - Employer contributions prior to August 1, 1994 were
invested in Jefferson Smurfit Group plc common stock.
Arch Growth and Income Fund - Employee contributions prior to October 1,
1996 were invested in shares of a registered investment company that
invests in common stocks of larger corporations.
Arch Balanced Fund - Employee contributions prior to October 1, 1996 were
invested in shares of a registered investment company that invests in
common stocks, bonds, and money market securities to obtain a stable
long-term total return.
Interest Income Fund - Employee contributions prior to October 1, 1996 were
invested in shares of a registered investment company that invests in
insurance contracts which provide a specified rate of investment income for
a specified period of time and under which the payment of principal is
guaranteed.
Arch Emerging Growth Fund - Employee contributions prior to October 1, 1996
were invested in shares of a registered investment company that invests in
the common stock of emerging or established small to medium-sized companies
with a primary objective of capital appreciation rather than current
income.
Arch International Fund - Employee contributions prior to October 1, 1996
were invested in shares of a registered investment company that invests in
a diversified portfolio of international stocks (non-U.S. companies)
operating in a variety of industries.
56
<PAGE> 57
Jefferson Smurfit Corporation
Hourly Savings Plan
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
T. Rowe Price Personal Strategy Balanced Fund - Effective October 1, 1996,
employee contributions are invested in shares of a registered investment
company that invests in common stocks, bonds, and money market securities
to provide total return over time consistent with an emphasis on both
capital appreciation and income.
T. Rowe Price Equity Income Fund - Effective October 1, 1996, employee
contributions are invested in shares of a registered investment company
that invests in common stocks of established companies that have long-term
capital appreciation and dividend income.
T. Rowe Price International Stock Fund - Effective October 1, 1996,
employee contributions are invested in shares of a registered investment
company that invests in common stocks of established non-U.S. companies.
T. Rowe Price New Horizons Fund - Effective October 1, 1996, employee
contributions are invested in shares of a registered investment company
that invests in common stocks of small growth companies in a broad range of
industries.
Fidelity Contra Fund - Effective January 1, 1997, employee contributions
are invested in shares of a registered investment company that invests in
common stocks that are considered undervalued with potential for capital
growth.
Fidelity Value Fund - Effective January 1, 1997, employee contributions are
invested in shares of a registered investment company that invests in the
stock of companies that possess valuable assets or are considered
undervalued.
Putnam New Opportunities Fund - Effective January 1, 1997, employee
contributions are invested in shares of a registered investment company
that invests in stocks of emerging industries offering long-term growth.
T. Rowe Price Blended Stable Value Fund - Effective January 1, 1997,
employee contributions are invested in shares of a registered investment
company that invests in high-quality insurance companies and banks seeking
to maintain a stable $1 per share price.
57
<PAGE> 58
Jefferson Smurfit Corporation
Hourly Savings Plan
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
Equity Index Trust (S&P 500) - Effective January 1, 1997, employee
contributions are invested in shares of the stocks that make up the
Standard & Poor's 500 Index.
T. Rowe Price Personal Strategy Income Fund - Effective January 1, 1997,
employee contributions are invested in shares of a registered investment
company that invests in bonds, common stocks, and money market securities
to provide the highest total return over time consistent with a primary
emphasis on income and a secondary emphasis on capital appreciation.
T. Rowe Price Personal Strategy Growth Fund - Effective January 1, 1997,
employee contributions are invested in shares of a registered investment
company that invests in common stocks, bonds, and money market securities
to provide the highest total return over time with an emphasis on capital
appreciation.
T. Rowe Price Summit Cash Reserves Fund - Effective January 1, 1997,
employee contributions are invested in shares of a registered investment
company that invests in high-quality money market securities seeking to
maintain a stable $1 per share price.
T. Rowe Price Spectrum Income Fund - Effective January 1, 1997, employee
contributions are invested in shares of a registered investment company
that invests in four domestic bond funds, an international bond fund, an
income-oriented bond fund, and a money market fund to provide a high level
of current income.
T. Rowe Price Blue Chip Growth Fund - Effective January 1, 1997, employee
contributions are invested in shares of a registered investment company
that invests in common stocks of large, well-known companies in growing
markets.
58
<PAGE> 59
Jefferson Smurfit Corporation
Hourly Savings Plan
Notes to Financial Statements (continued)
3. INVESTMENTS
The fair value of individual investments that represent 5 percent or more of the
Plan's net assets is as follows:
<TABLE>
<CAPTION>
DECEMBER 31
1997 1996
--------------------------------------
<S> <C> <C>
Jefferson Smurfit Corporation
common stock
(446,785 and 316,115 shares) $ 6,310,843 $ 5,077,748
American Express Trust Company Income
Fund A (87,704 shares) - 3,724,338
T. Rowe Price Blended Stable Value Fund
(7,895,802 and 3,159,352 shares) 7,895,802 3,159,352
T. Rowe Price New Horizons Fund
(320,069 and 225,255 shares) 7,457,600 4,903,802
T. Rowe Price Personal Strategy Balanced Fund
(444,118 and 358,126 shares) 6,581,829 4,759,499
T. Rowe Price Equity Income Fund
(691,614 and 505,675 shares) 18,030,272 11,397,912
</TABLE>
4. PLAN TAX STATUS
The Internal Revenue Service ruled on June 17, 1996 that the Plan continues to
qualify under Section 401(a) and meets the requirements under Section 401(k) of
the Internal Revenue Code (IRC), and therefore, the related trust is not subject
to tax under present income tax law. The Administrative Committee is not aware
of any course of action or series of events that has occurred that might
adversely affect the Plan's qualified status.
Participants are not subject to federal income tax on amounts contributed to
their 401(k) or employer matching contribution amounts under the Plan or on
earnings attributable to such contributions, until such time as these amounts
are distributed to or withdrawn by them.
59
<PAGE> 60
Jefferson Smurfit Corporation
Hourly Savings Plan
Notes to Financial Statements (continued)
5. YEAR 2000 (UNAUDITED)
Computer programs that have time-sensitive software may recognize a date using
"00" as the year 1900 rather than the year 2000. Beginning in the year 2000,
this could result in a system failure or miscalculations causing disruptions of
operations, including a temporary inability to process transactions or engage in
normal business activities.
The Plan is completing testing for its internal systems that impact the
processing of employee benefits. The only major system related to the Plan that
is noncompliant is the payroll system, which is currently in the process of
being updated to a new year 2000-compliant system. The payroll system and all
other systems are expected to be year 2000-complaint by the end of 1998.
The Plan has initiated formal communications with its service providers to
determine the extent to which the Plan's interface systems are vulnerable to
those third parties' failure to resolve their own year 2000 issues. This process
is expected to be completed near the end of 1998.
The entire cost of the year 2000 inquiries and the systems updates are being
paid by the Company with no effect on plan assets. The Plan believes the
necessary modifications and replacement of computer systems will be completed in
a timely manner, and as a result, the year 2000 issue is not expected to pose
significant operational or financial problems for the Plan.
60
<PAGE> 61
SUPPLEMENTAL SCHEDULES
61
<PAGE> 62
Jefferson Smurfit Corporation Hourly Savings Plan
Line 27a - Assets Held for Investment
December 31, 1997
<TABLE>
<CAPTION>
SHARES/ CURRENT
DESCRIPTION UNITS VALUE COST
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
JS Common Stock Fund* 446,785 $ 6,310,843 $ 6,181,718
JS Group Stock Fund* 501,978 1,398,913 1,155,400
T. Rowe Price Equity Income Fund 691,614 18,030,372 16,162,502
T. Rowe Price Personal Strategy Balanced Fund 441,118 6,581,829 6,014,252
T. Rowe Price New Horizons Fund 320,069 7,457,600 7,029,420
T. Rowe Price International Stock Fund 86,324 1,158,467 1,215,002
Fidelity Contra Fund 4,786 223,177 219,525
Fidelity Value Fund 1,066 57,612 61,135
Putnam New Opportunities Fund 11,849 576,468 521,705
T. Rowe Price Blended Stable Value Fund 7,895,802 7,895,802 7,895,802
Equity Index Trust (S&P 500) 18,615 461,272 416,596
T. Rowe Price Personal Strategy Income Fund 2,950 36,727 36,351
T. Rowe Price Personal Strategy Growth Fund 9,122 150,697 144,751
T. Rowe Price Summit Cash Reserves Fund 177,422 177,422 177,422
T. Rowe Price Spectrum Income Fund 9,276 108,157 106,300
T. Rowe Price Blue Chip Growth Fund 57,626 1,392,823 1,256,285
------------------- -----------------
$52,018,181 $48,594,166
=================== =================
</TABLE>
* Parties in interest.
62
<PAGE> 63
Jefferson Smurfit Corporation Hourly Savings Plan
Line 27d - Transactions or Series of Transactions in Excess of
5% of the Current Value of Plan Assets
Year ended December 31, 1997
<TABLE>
<CAPTION>
CURRENT VALUE
DESCRIPTION OF PURCHASE SELLING COST OF ASSET ON NET GAIN
IDENTITY OF PARTY INVOLVED ASSETS PRICE PRICE OF ASSET TRANSACTION DATE (LOSS)
- ------------------------------------------------------------------------------------------------------------------------------------
Category (iii) - Series of transactions in excess of 5% of the current value of plan assets
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
JS Common Stock Fund Company stock $ 6,631,472 $ - $ 6,631,472 $ 6,631,472 $ -
Company stock (328,222) (392,598) (328,222) (392,598) 64,376
T. Rowe Price Blended Stable Value Fund GIC 8,831,970 - 8,831,970 8,831,970 -
GIC (936,169) (936,169) (936,169) (936,169) -
T. Rowe Price Personal Strategy
Balanced Fund Mutual fund 6,572,906 - 6,572,906 6,572,906 -
Mutual fund (565,153) (594,793) (565,153) (594,793) 29,640
T. Rowe Price New Horizons Fund Mutual fund 7,998,095 - 7,998,095 7,998,095 -
Mutual fund (971,271) (958,494) (971,271) (958,494) (12,777)
T. Rowe Price Equity Income Fund Mutual fund 17,250,242 - 17,250,242 17,250,242 -
Mutual fund (1,096,817) (1,194,387) (1,096,817) (1,194,387) 97,570
</TABLE>
Categories (i), (ii), and (iv) are not applicable
63
<PAGE> 64
Financial Statements
and Supplemental Schedules
Smurfit Packaging Corporation
Savings Plan
Years ended December 31, 1997 and 1996
with Report of Independent Auditors
64
<PAGE> 65
Smurfit Packaging Corporation
Savings Plan
Financial Statements
and Supplemental Schedules
Years ended December 31, 1997 and 1996
CONTENTS
Report of Independent Auditors......................................... 66
Financial Statements
Statements of Net Assets Available for Plan Benefits................... 67
Statements of Changes in Net Assets Available for Plan Benefits........ 77
Notes to Financial Statements.......................................... 87
Supplemental Schedules
Line 27a - Assets Held for Investment.................................. 95
Line 27d - Transactions or Series of Transactions in Excess of 5%
of the Current Value of Plan Assets................................. 97
65
<PAGE> 66
Report of Independent Auditors
Administrative Committee
Jefferson Smurfit Corporation Retirement Plans
We have audited the accompanying statements of net assets available for plan
benefits of Smurfit Packaging Corporation Savings Plan as of December 31, 1997
and 1996, and the related statements of changes in net 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 net assets available for plan benefits at December
31, 1997 and 1996, and the changes in its net 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 financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment as of December 31, 1997 and transactions or series of
transactions in excess of 5 percent of the current value of plan assets 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 plan benefits and the statements of changes in net assets
available for plan benefits is presented for purposes of additional analysis
rather than to represent the net assets available for plan benefits and 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 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.
/s/ Ernst & Young LLP
June 19, 1998
66
<PAGE> 67
Smurfit Packaging Corporation Savings Plan
Statements of Net Assets Available for Plan Benefits
December 31, 1997
<TABLE>
<CAPTION>
ARCH T. ROWE PRICE
GROWTH T. ROWE PRICE PERSONAL
AND EQUITY STRATEGY
JS COMMON JS GROUP INCOME INCOME BALANCED
STOCK FUND STOCK FUND FUND FUND FUND SUBTOTAL
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value $1,832,770 $1,138,843 $ - $5,012,922 $1,031,873 $9,016,408
Participant loans - - - - - -
-------------------------------------------------------------------------------------------
Net assets available for
plan benefits $1,832,770 $1,138,843 $ - $5,012,922 $1,031,873 $9,016,408
===========================================================================================
</TABLE>
See accompanying notes.
67
<PAGE> 68
Smurfit Packaging Corporation Savings Plan
Statements of Net Assets Available for Plan Benefits (continued)
December 31, 1997
<TABLE>
<CAPTION>
ARCH
PREVIOUS INTEREST MOBIL AETNA VIP EMERGING
PAGE INCOME STOCK CONTRACT GROWTH
SUBTOTAL FUND FUND FUND FUND SUBTOTAL
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value $9,016,408 $ - $5,156,589 $ - $ - $14,172,997
Participant loans - - - - - -
------------------------------------------------------------------------------------------------
Net assets available for
plan benefits $9,016,408 $ - $5,156,589 $ - $ - $14,172,997
================================================================================================
</TABLE>
See accompanying notes.
68
<PAGE> 69
Smurfit Packaging Corporation Savings Plan
Statements of Net Assets Available for Plan Benefits (continued)
December 31, 1997
<TABLE>
<CAPTION>
T. ROWE
PRICE ARCH T. ROWE
PREVIOUS NEW INTER- PRICE FIDELITY
PAGE HORIZONS NATIONAL INTERNATIONAL CONTRA
SUBTOTAL FUND FUND STOCK FUND FUND SUBTOTAL
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value $14,172,997 $808,989 $ - $243,763 $86,580 $15,312,329
Participant loans - - - - - -
------------------------------------------------------------------------------------------------
Net assets available for
plan benefits $14,172,997 $808,989 $ - $243,763 $86,580 $15,312,329
================================================================================================
</TABLE>
See accompanying notes.
69
<PAGE> 70
Smurfit Packaging Corporation Savings Plan
Statements of Net Assets Available for Plan Benefits (continued)
December 31, 1997
<TABLE>
<CAPTION>
T. ROWE
PUTNAM PRICE
NEW BLENDED EQUITY
PREVIOUS FIDELITY OPPOR- STABLE INDEX
PAGE VALUE TUNITIES VALUE TRUST
SUBTOTAL FUND FUND FUND (S&P 500) SUBTOTAL
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value $15,312,329 $45,685 $155,784 $2,861,069 $259,790 $18,634,657
Participant loans - - - - - -
------------------------------------------------------------------------------------------------
Net assets available for
plan benefits $15,312,329 $45,685 $155,784 $2,861,069 $259,790 $18,634,657
================================================================================================
</TABLE>
See accompanying notes.
70
<PAGE> 71
Smurfit Packaging Corporation Savings Plan
Statements of Net Assets Available for Plan Benefits (continued)
December 31, 1997
<TABLE>
<CAPTION>
T. ROWE T. ROWE
PRICE PRICE
PERSONAL PERSONAL T. ROWE T. ROWE PRICE
PREVIOUS STRATEGY STRATEGY PRICE SUMMIT SPECTRUM
PAGE INCOME GROWTH CASH RESERVES INCOME
SUBTOTAL FUND FUND FUND FUND SUBTOTAL
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value $18,634,657 $19,013 $82,724 $51,523 $23,192 $18,811,109
Participant loans - - - - - -
------------------------------------------------------------------------------------------------
Net assets available for
plan benefits $18,634,657 $19,013 $82,724 $51,523 $23,192 $18,811,109
================================================================================================
</TABLE>
See accompanying notes.
71
<PAGE> 72
Smurfit Packaging Corporation Savings Plan
Statements of Net Assets Available for Plan Benefits (continued)
December 31, 1997
<TABLE>
<CAPTION>
PREVIOUS T. ROWE PRICE
PAGE BLUE CHIP GROWTH PARTICIPANT
SUBTOTAL FUND LOANS TOTAL
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments, at fair value $18,811,109 $469,102 $ - $19,280,211
Participant loans - - 411,615 411,615
---------------------------------------------------------------------
Net assets available for
plan benefits $18,811,109 $469,102 $411,615 $19,691,826
=====================================================================
</TABLE>
See accompanying notes.
72
<PAGE> 73
Smurfit Packaging Corporation Savings Plan
Statements of Net Assets Available for Plan Benefits (continued)
December 31, 1996
<TABLE>
<CAPTION>
ARCH T. ROWE PRICE
GROWTH EQUITY ARCH
JS COMMON JS GROUP AND INCOME INCOME BALANCED
STOCK FUND STOCK FUND FUND FUND FUND SUBTOTAL
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value $1,678,977 $1,278,892 $ - $3,619,033 $33,126 $6,610,028
Participant loans - - - - - -
-----------------------------------------------------------------------------------------------
1,678,977 1,278,892 - 3,619,033 33,126 6,610,028
Receivables:
Accrued investment
income receivable 17 123 89 140,271 30 140,530
Due from other funds 2,788 - - - - 2,788
-----------------------------------------------------------------------------------------------
2,805 123 89 140,271 30 143,318
Cash and cash equivalents 28,722 16,742 15,936 12,076 16,622 90,098
-----------------------------------------------------------------------------------------------
Total assets 1,710,504 1,295,757 16,025 3,771,380 49,778 6,843,444
LIABILITIES
Accrued administrative
fees 1,649 - 15 3,642 48 5,354
Due to other funds - 2,788 - - 49,730 52,518
-----------------------------------------------------------------------------------------------
Total liabilities 1,649 2,788 15 3,642 49,778 57,872
-----------------------------------------------------------------------------------------------
Net assets available for
plan benefits $1,708,855 $1,292,969 $16,010 $3,767,738 $ - $6,785,572
===============================================================================================
</TABLE>
See accompanying notes.
73
<PAGE> 74
Smurfit Packaging Corporation Savings Plan
Statements of Net Assets Available for Plan Benefits (continued)
December 31, 1996
<TABLE>
<CAPTION>
T. ROWE PRICE
PERSONAL
PREVIOUS STRATEGY INTEREST AETNA VIP
PAGE BALANCED INCOME MOBIL CONTRACT
SUBTOTAL FUND FUND STOCK FUND FUND SUBTOTAL
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value $6,610,028 $792,071 $2,768,158 $4,199,165 $204,238 $14,573,660
Participant loans - - - - - -
-----------------------------------------------------------------------------------------------
6,610,028 792,071 2,768,158 4,199,165 204,238 14,573,660
Receivables:
Accrued investment
income receivable 140,530 19,072 2,674 344 1,024 163,644
Due from other funds 2,788 50,022 - - - 52,810
-----------------------------------------------------------------------------------------------
143,318 69,094 2,674 344 1,024 216,454
Cash and cash equivalents 90,098 3,802 26,761 78,951 972 200,584
-----------------------------------------------------------------------------------------------
Total assets 6,843,444 864,967 2,797,593 4,278,460 206,234 14,990,698
LIABILITIES
Accrued administrative
fees 5,354 787 2,702 4,133 699 13,675
Due to other funds 52,518 292 - - - 52,810
-----------------------------------------------------------------------------------------------
Total liabilities 57,872 1,079 2,702 4,133 699 66,485
-----------------------------------------------------------------------------------------------
Net assets available for
plan benefits $6,785,572 $863,888 $2,794,891 $4,274,327 $205,535 $14,924,213
===============================================================================================
</TABLE>
See accompanying notes.
74
<PAGE> 75
Smurfit Packaging Corporation Savings Plan
Statements of Net Assets Available for Plan Benefits (continued)
December 31, 1996
<TABLE>
<CAPTION>
T. ROWE
PRICE
ARCH T. ROWE PRICE INTER-
PREVIOUS EMERGING NEW ARCH NATIONAL
PAGE GROWTH HORIZONS INTERNATIONAL STOCK
SUBTOTAL FUND FUND FUND FUND SUBTOTAL
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value $14,573,660 $ - $624,138 $ - $115,664 $15,313,462
Participant loans - - - - - -
-----------------------------------------------------------------------------------------------
14,573,660 - 624,138 - 115,664 15,313,462
Receivables:
Accrued investment
income receivable 163,644 - 62,787 - 3,185 229,616
Due from other funds 52,810 - - - - 52,810
-----------------------------------------------------------------------------------------------
216,454 - 62,787 - 3,185 282,426
Cash and cash equivalents 200,584 403 5,024 52 1,304 207,367
-----------------------------------------------------------------------------------------------
Total assets 14,990,698 403 691,949 52 120,153 15,803,255
LIABILITIES
Accrued administrative
fees 13,675 - 668 - 116 14,459
Due to other funds 52,810 - - - - 52,810
-----------------------------------------------------------------------------------------------
Total liabilities 66,485 - 668 - 116 67,269
-----------------------------------------------------------------------------------------------
Net assets available for
plan benefits $14,924,213 $403 $691,281 $52 $120,037 $15,735,986
===============================================================================================
</TABLE>
See accompanying notes.
75
<PAGE> 76
Smurfit Packaging Corporation Savings Plan
Statements of Net Assets Available for Plan Benefits (continued)
December 31, 1996
<TABLE>
<CAPTION>
PREVIOUS
PAGE
SUBTOTAL PARTICIPANT LOANS TOTAL
---------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments, at fair value $15,313,462 $ - $15,313,462
Participant loans - 307,835 307,835
---------------------------------------------------------
15,313,462 307,835 15,621,297
Receivables:
Accrued investment
income receivable 229,616 - 229,616
Due from other funds 52,810 - 52,810
---------------------------------------------------------
282,426 - 282,426
Cash and cash equivalents 207,367 - 207,367
---------------------------------------------------------
Total assets 15,803,255 307,835 16,111,090
LIABILITIES
Accrued administrative
fees 14,459 - 14,459
Due to other funds 52,810 - 52,810
---------------------------------------------------------
Total liabilities 67,269 - 67,269
---------------------------------------------------------
Net assets available for
plan benefits $15,735,986 $307,835 $16,043,821
=========================================================
</TABLE>
See accompanying notes.
76
<PAGE> 77
Smurfit Packaging Corporation Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits
Year ended December 31, 1997
<TABLE>
<CAPTION>
T. ROWE
T. ROWE PRICE
ARCH PRICE PERSONAL
GROWTH AND EQUITY STRATEGY
JS COMMON JS GROUP INCOME INCOME BALANCED
STOCK FUND STOCK FUND FUND FUND FUND SUBTOTAL
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees $ 43,598 $ - $ - $ 369,143 $ 129,253 $ 541,994
Employer 591,607 - - - - 591,607
Net investment income:
Interest on guaranteed group
annuity contracts - - - - - -
Other investment income - 18,956 - 491,975 52,232 563,163
-------------------------------------------------------------------------------------------
635,205 18,956 - 861,118 181,485 1,696,764
Net realized and unrealized
appreciation (depreciation) of
investments (209,684) (92,283) - 606,726 98,961 403,720
Transfers by participants (260,356) (8,584) (16,010) (22,371) (42,012) (349,333)
Transfers to JS Common Stock Fund
from JS Group Stock Fund 18,956 (18,956) - - - -
Transfers of participant accounts
from Jefferson Smurfit
Corporation Savings Plan and
Smurfit Packaging Corporation
401(k) Savings Plan 15,473 - - 1,369 329 17,171
Forfeitures (20,024) (4,397) - - - (24,421)
Withdrawals by participants (55,694) (48,862) - (286,155) (77,756) (468,467)
Loan repayments by participants 122 - - 85,835 8,652 94,609
Administrative expenses (83) - - (1,338) (1,674) (3,095)
-------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets available for plan
benefits 123,915 (154,126) (16,010) 1,245,184 167,985 1,366,948
Net assets available for plan
benefits, beginning of year 1,708,855 1,292,969 16,010 3,767,738 863,888 7,649,460
-------------------------------------------------------------------------------------------
Net assets available for plan
benefits, end of year $1,832,770 $1,138,843 $ - $5,012,922 $1,031,873 $9,016,408
===========================================================================================
</TABLE>
See accompanying notes.
77
<PAGE> 78
Smurfit Packaging Corporation Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits (continued)
Year ended December 31, 1997
<TABLE>
<CAPTION>
AETNA ARCH
PREVIOUS INTEREST MOBIL VIP EMERGING
PAGE INCOME STOCK CONTRACT GROWTH
SUBTOTAL FUND FUND FUND FUND SUBTOTAL
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees $ 541,994 $ - $ - $ - $ - $ 541,994
Employer 591,607 - - - - 591,607
Net investment income:
Interest on guaranteed
group annuity contracts - - - - - -
Other investment income 563,163 - 149,455 - - 712,618
----------------------------------------------------------------------------------------
1,696,764 - 149,455 - - 1,846,219
Net realized and unrealized
appreciation (depreciation)
of investments 403,720 - 772,060 - - 1,175,780
Transfers by participants (349,333) (2,794,891) 3,082 (205,535) (403) (3,347,080)
Transfers to JS Common Stock
Fund from JS Group Stock
Fund - - - - - -
Transfers of participant
accounts from Jefferson
Smurfit Corporation Savings
Plan and Smurfit Packaging
Corporation 401(k) Savings
Plan 17,171 - - - - 17,171
Forfeitures (24,421) - - - - (24,421)
Withdrawals by participants (468,467) - (42,259) - - (510,726)
Loan repayments by participants 94,609 - - - - 94,609
Administrative expenses (3,095) - (76) - - (3,171)
----------------------------------------------------------------------------------------
Net increase (decrease) in net
assets available for plan
benefits 1,366,948 (2,794,891) 882,262 (205,535) (403) (751,619)
Net assets available for plan
benefits, beginning of year 7,649,460 2,794,891 4,274,327 205,535 403 14,924,616
----------------------------------------------------------------------------------------
Net assets available for plan
benefits, end of year $9,016,408 $ - $5,156,589 $ - $ - $14,172,997
==========================================================================================
</TABLE>
See accompanying notes.
78
<PAGE> 79
Smurfit Packaging Corporation Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits (continued)
Year ended December 31, 1997
<TABLE>
<CAPTION>
T. ROWE
T. ROWE PRICE
PRICE ARCH INTER-
PREVIOUS NEW INTER- NATIONAL FIDELITY
PAGE HORIZONS NATIONAL STOCK CONTRA
SUBTOTAL FUND FUND FUND FUND SUBTOTAL
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees $ 541,994 $ 187,863 $ - $ 53,722 $ 24,473 $ 808,052
Employer 591,607 - - - - 591,607
Net investment income:
Interest on guaranteed
group annuity contracts - - - - - -
Other investment income 712,618 19,504 - 12,816 7,118 752,056
--------------------------------------------------------------------------------------------
1,846,219 207,367 - 66,538 31,591 2,151,715
Net realized and unrealized
appreciation (depreciation)
of investments 1,175,780 69,435 - (12,265) 1,425 1,234,375
Transfers by participants (3,347,080) 11,599 (52) 88,561 53,568 (3,193,404)
Transfers to JS Common Stock
Fund from JS Group Stock
Fund - - - - - -
Transfers of participant
accounts from Jefferson
Smurfit Corporation Savings
Plan and Smurfit Packaging
Corporation 401(k) Savings
Plan 17,171 955 - - - 18,126
Forfeitures (24,421) - - - - (24,421)
Withdrawals by participants (510,726) (210,728) - (20,404) - (741,858)
Loan repayments by participants 94,609 39,153 - 1,296 10 135,068
Administrative expenses (3,171) (73) - - (14) (3,258)
---------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets available for plan
benefits (751,619) 117,708 (52) 123,726 86,580 (423,657)
Net assets available for plan
benefits, beginning of year 14,924,616 691,281 52 120,037 - 15,735,986
--------------------------------------------------------------------------------------------
Net assets available for plan
benefits, end of year $ 14,172,997 $ 808,989 $ - $ 243,763 $ 86,580 $ 15,312,329
============================================================================================
</TABLE>
See accompanying notes.
79
<PAGE> 80
Smurfit Packaging Corporation Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits (continued)
Year ended December 31, 1997
<TABLE>
<CAPTION>
T. ROWE
PRICE
PREVIOUS PUTNAM NEW BLENDED EQUITY INDEX
PAGE FIDELITY OPPORTUNITIES STABLE VALUE TRUST (S&P
SUBTOTAL VALUE FUND FUND FUND 500) SUBTOTAL
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees $ 808,052 $ 8,887 $ 66,588 $ 182,435 $ 18,298 $ 1,084,260
Employer 591,607 - - - 591,607
Net investment income:
Interest on guaranteed
group annuity contracts - - - 178,207 - 178,207
Other investment income 752,056 6,095 3,403 - - 761,554
-------------------------------------------------------------------------------------------
2,151,715 14,982 69,991 360,642 18,298 2,615,628
Net realized and unrealized
appreciation (depreciation)
of investments 1,234,375 (3,862) 14,783 - 28,382 1,273,678
Transfers by participants (3,193,404) 35,198 70,691 2,633,150 183,797 (270,568)
Transfers to JS Common Stock
Fund from JS Group Stock
Fund - - - - - -
Transfers of participant
accounts from Jefferson
Smurfit Corporation Savings
Plan and Smurfit Packaging
Corporation 401(k) Savings
Plan 18,126 - - 5,125 66,432 89,683
Forfeitures (24,421) - - - - (24,421)
Withdrawals by participants (741,858) (643) (1,456) (145,989) (37,250) (927,196)
Loan repayments by participants 135,068 10 1,794 16,767 157 153,796
Administrative expenses 3,258 - (19) (8,626) (26) (11,929)
-------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets available for plan
benefits (423,657) 45,685 155,784 2,861,069 259,790 2,898,671
Net assets available for plan
benefits, beginning of year 15,735,986 - - - - 15,735,986
-------------------------------------------------------------------------------------------
Net assets available for plan
benefits, end of year $15,312,329 $45,685 $155,784 $2,861,069 $259,790 $18,634,657
==========================================================================================
</TABLE>
See accompanying notes.
80
<PAGE> 81
Smurfit Packaging Corporation Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits (continued)
Year ended December 31, 1997
<TABLE>
<CAPTION>
T. ROWE T. ROWE
PRICE PRICE T. ROWE T. ROWE
PREVIOUS PERSONAL PERSONAL PRICE SUMMIT PRICE
PAGE STRATEGY STRATEGY CASH SPECTRUM
SUBTOTAL INCOME FUND GROWTH FUND RESERVES FUND INCOME FUND SUBTOTAL
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees $ 1,084,260 $14,712 $56,517 $12,904 $16,209 $ 1,184,602
Employer 591,607 - - - - 591,607
Net investment income:
Interest on guaranteed
group annuity contracts 178,207 - - - - 178,207
Other investment income 761,554 851 2,521 1,705 1,100 767,731
------------------------------------------------------------------------------------------
2,615,628 15,563 59,038 14,609 17,309 2,722,147
Net realized and unrealized
appreciation (depreciation)
of investments 1,273,678 417 5,293 - 731 1,280,119
Transfers by participants (270,568) (524) 17,971 16,323 6,415 (230,383)
Transfers to JS Common Stock
Fund from JS Group Stock
Fund - - - - - -
Transfers of participant
accounts from Jefferson
Smurfit Corporation Savings
Plan and Smurfit Packaging
Corporation 401(k) Savings
Plan 89,683 - - 932 - 90,615
Forfeitures (24,421) - - - - (24,421)
Withdrawals by participants (927,196) - - (7,070) (1,110) (935,376)
Loan repayments by participants 153,796 3,646 625 27,027 - 185,094
Administrative expenses (11,929) (89) (203) (298) (153) (12,672)
------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets available for plan
benefits 2,898,671 19,013 82,724 51,523 23,192 3,075,123
Net assets available for plan
benefits, beginning of year 15,735,986 - - - - 15,735,986
------------------------------------------------------------------------------------------
Net assets available for plan
benefits, end of year $18,634,657 $19,013 $82,724 $51,523 $23,192 $18,811,109
==========================================================================================
</TABLE>
See accompanying notes.
81
<PAGE> 82
Smurfit Packaging Corporation Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits (continued)
Year ended December 31, 1997
<TABLE>
<CAPTION>
T. ROWE
PREVIOUS PRICE
PAGE BLUE CHIP PARTICIPANT
SUBTOTAL GROWTH FUND LOANS TOTAL
---------------------------------------------------------------
<S> <C> <C> <C> <C>
Contributions:
Employees $ 1,184,602 $180,120 $ - $ 1,364,722
Employer 591,607 - - 591,607
Net investment income:
Interest on guaranteed
group annuity contracts 178,207 - - 178,207
Other investment income 767,731 2,672 27,821 798,224
---------------------------------------------------------------
2,722,147 182,792 27,821 2,932,760
Net realized and unrealized
appreciation (depreciation)
of investments 1,280,119 52,989 - 1,333,108
Transfers by participants (230,383) 230,383 - -
Transfers to JS Common Stock
Fund from JS Group Stock
Fund - - - -
Transfers of participant
accounts from Jefferson
Smurfit Corporation Savings
Plan and Smurfit Packaging
Corporation 401(k) Savings
Plan 90,615 - - 90,615
Forfeitures (24,421) - - (24,421)
Withdrawals by participants (935,376) (2,294) 266,724 (670,946)
Loan repayments by participants 185,094 5,671 (190,765) -
Administrative expenses (12,672) (439) - (13,111)
---------------------------------------------------------------
Net increase (decrease) in net
assets available for plan
benefits 3,075,123 469,102 103,780 3,648,005
Net assets available for plan
benefits, beginning of year 15,735,986 - 307,835 16,043,821
---------------------------------------------------------------
Net assets available for plan
benefits, end of year $18,811,109 $469,102 $ 411,615 $19,691,826
===============================================================
</TABLE>
See accompanying notes.
82
<PAGE> 83
Smurfit Packaging Corporation Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits (continued)
Year ended December 31, 1996
<TABLE>
<CAPTION>
ARCH T. ROWE
GROWTH PRICE
AND EQUITY ARCH
JS COMMON JS GROUP INCOME INCOME BALANCED
STOCK FUND STOCK FUND FUND FUND FUND SUBTOTAL
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees $ 43,120 $ - $ 309,650 $ 75,435 $ 92,424 $ 520,629
Employer 417,450 - - - - 417,450
Net investment income:
Interest on guaranteed
group annuity contracts - - - - - -
Other investment income 840 30,449 38,954 140,326 17,501 228,070
-------------------------------------------------------------------------------------------
461,410 30,449 348,604 215,761 109,925 1,166,149
Net realized and unrealized
appreciation (depreciation)
of investments 590,853 273,269 543,896 (60,463) 97,491 1,445,046
Transfers by participants 43,303 (10,303) (3,635,813) 3,670,383 (825,577) (758,007)
Transfers to JS Common Stock
Fund from JS Group Stock
Fund 29,558 (29,558) - - - -
Forfeitures (6,346) (2,788) - - - (9,134)
Withdrawals by participants (66,052) (111,163) (355,707) (54,301) (155,776) (742,999)
Loan repayments by participants 1,218 - 53,639 - 19,397 74,254
Administrative expenses (9,264) - (5,780) (3,642) (1,846) (20,532)
-------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets available for plan
benefits 1,044,680 149,906 (3,051,161) 3,767,738 (756,386) 1,154,777
Net assets available for plan
benefits, beginning of year 664,175 1,143,063 3,067,171 - 756,386 5,630,795
-------------------------------------------------------------------------------------------
Net assets available for plan
benefits, end of year $1,708,855 $1,292,969 $ 16,010 $3,767,738 $ - $6,785,572
===========================================================================================
</TABLE>
See accompanying notes.
83
<PAGE> 84
Smurfit Packaging Corporation Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits (continued)
Year ended December 31, 1996
<TABLE>
<CAPTION>
T. ROWE
PRICE
PERSONAL AETNA
STRATEGY INTEREST MOBIL VIP
PREVIOUS PAGE BALANCED INCOME STOCK CONTRACT
SUBTOTAL FUND FUND FUND FUND SUBTOTAL
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees $ 520,629 $ 25,388 $ 172,958 $ - $ 17,716 $ 736,691
Employer 417,450 - - - - 417,450
Net investment income:
Interest on guaranteed
group annuity contracts - - - - 14,012 14,012
Other investment income 228,070 19,072 2,944 169,185 - 419,271
-------------------------------------------------------------------------------------------
1,166,149 44,460 175,902 169,185 31,728 1,587,424
Net realized and unrealized
appreciation (depreciation)
of investments 1,445,046 5,128 178,927 437,003 - 2,066,104
Transfers by participants (758,007) 818,402 (61,512) - (6,511) (7,628)
Transfers to JS Common Stock
Fund from JS Group Stock
Fund - - - - - -
Forfeitures (9,134) - - - - (9,134)
Withdrawals by participants (742,999) (3,315) (665,714) (2,115,546) (76,057) (3,603,631)
Loan repayments by participants 74,254 - 38,788 36,045 400 149,487
Administrative expenses (20,532) (787) (4,855) (7,486) (1,242) (34,902)
-------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets available for plan
benefits 1,154,777 863,888 (338,464) (1,480,799) (51,682) 147,720
Net assets available for plan
benefits, beginning of year 5,630,795 - 3,133,355 5,755,126 257,217 14,776,493
-------------------------------------------------------------------------------------------
Net assets available for plan
benefits, end of year $6,785,572 $863,888 $2,794,891 $4,274,327 $205,535 $14,924,213
===========================================================================================
</TABLE>
See accompanying notes.
84
<PAGE> 85
Smurfit Packaging Corporation Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits (continued)
Year ended December 31, 1996
<TABLE>
<CAPTION>
ARCH T. ROWE PRICE T. ROWE PRICE
EMERGING NEW ARCH INTERNATIONAL
PREVIOUS PAGE GROWTH HORIZONS INTERNATIONAL STOCK
SUBTOTAL FUND FUND FUND FUND SUBTOTAL
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees $ 736,691 $ 136,695 $ 35,443 $ 33,362 $ 8,497 $ 950,688
Employer 417,450 - - - - 417,450
Net investment income:
Interest on guaranteed
group annuity contracts 14,012 - - - - 14,012
Other investment income 419,271 972 62,786 40 3,185 486,254
-------------------------------------------------------------------------------------------
1,587,424 137,667 98,229 33,402 11,682 1,868,404
Net realized and unrealized
appreciation (depreciation)
of investments 2,066,104 52,614 (62,561) 6,035 1,786 2,063,978
Transfers by participants (7,628) (652,114) 659,307 (106,308) 106,743 -
Transfers to JS Common Stock
Fund from JS Group Stock
Fund - - - - - -
Forfeitures (9,134) - - - - (9,134)
Withdrawals by participants (3,603,631) (28,835) (2,817) (6,599) - (3,641,882)
Loan repayments by participants 149,487 5,561 - 419 - 155,467
Administrative expenses (34,902) (1,141) (877) (528) (174) (37,622)
-------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets available for plan
benefits 147,720 (486,248) 691,281 (73,579) 120,037 399,211
Net assets available for plan
benefits, beginning of year 14,776,493 486,651 - 73,631 - 15,336,775
-------------------------------------------------------------------------------------------
Net assets available for plan
benefits, end of year $14,924,213 $ 403 $691,281 $ 52 $120,037 $15,735,986
===========================================================================================
</TABLE>
See accompanying notes.
85
<PAGE> 86
Smurfit Packaging Corporation Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits (continued)
Year ended December 31, 1996
<TABLE>
<CAPTION>
PREVIOUS
PAGE PARTICIPANT
SUBTOTAL LOANS TOTAL
----------------------------------------------------
<S> <C> <C> <C>
Contributions:
Employees $ 950,688 $ - $ 950,688
Employer 417,450 - 417,450
Net investment income:
Interest on guaranteed group
annuity contracts 14,012 - 14,012
Other investment income 486,254 19,847 506,101
----------------------------------------------------
1,868,404 19,847 1,888,251
Net realized and unrealized
appreciation (depreciation) of
investments 2,063,978 - 2,063,978
Transfers by participants - - -
Transfers to JS Common Stock Fund
from JS Group Stock Fund - - -
Forfeitures (9,134) - (9,134)
Withdrawals by participants (3,641,882) 176,735 (3,465,147)
Loan repayments by participants 155,467 (155,467) -
Administrative expenses (37,622) - (37,622)
----------------------------------------------------
Net increase (decrease) in net
assets available for plan
benefits 399,211 41,115 440,326
Net assets available for plan
benefits, beginning of year 15,336,775 266,720 15,603,495
----------------------------------------------------
Net assets available for plan
benefits, end of year $15,735,986 $ 307,835 $16,043,821
====================================================
</TABLE>
See accompanying notes.
86
<PAGE> 87
Smurfit Packaging Corporation
Savings Plan
Notes to Financial Statements
December 31, 1997
1. SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Smurfit Packaging Corporation Savings Plan (the
Plan) are reported on the accrual basis. The current values of investments have
been determined by T. Rowe Price as trustee for 1997 and by Mercantile Bank of
St. Louis, N.A., (Mercantile) as trustee for 1996 and have been based on closing
prices if traded on national stock exchanges or bid prices for bonds. The
immediate participation contracts and participant loans are valued at cost which
approximates market. The differences between the current value and the cost of
investments are reflected in the statements of changes in net assets available
for plan benefits as part of net realized and unrealized appreciation
(depreciation) of investments. The cost of securities sold is based on the
weighted average method.
As of January 1, 1997, the Plan changed the Plan's trustee from Mercantile to T.
Rowe Price. As of October 1, 1996, funds were transferred into an omnibus
account, and investment options were changed from the various Arch funds to T.
Rowe Price funds.
Administrative expenses are paid by the Plan. In 1997, the Plan changed the
allocation of administrative expenses to participant accounts from a prorated
method to allocating expenses to a participant's most stable fund.
The preparation of financial statements in conformity with generally accepted
accounting principles requires plan 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.
Certain reclassifications have been made to the 1996 financial statements to
conform to the 1997 presentation.
2. DESCRIPTION OF THE PLAN
The Plan is a contributory employee benefit plan of Smurfit Packaging
Corporation (Company) and adopting subsidiaries and affiliates. The Plan is
composed of three components: (i) a cash or deferred compensation plan (401(k)
component); (ii) an after-tax voluntary contribution plan (ATC component); and
(iii) employer matching contributions.
87
<PAGE> 88
Smurfit Packaging Corporation
Savings Plan
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
The Plan is administered by an Administrative Committee (Committee) consisting
of officers or other employees of the Company or its adopting subsidiaries and
affiliates. The Committee prescribes forms for use by participants and may make
administrative and procedural recommendations.
Employees eligible to participate in the Plan generally consist of all employees
of the Company and adopting subsidiaries and affiliates, except for (1) those
employees covered by a collective bargaining agreement which provides for
retirement benefits, (2) nonresident aliens, and (3) substantially all hourly
employees.
Under the 401(k) provisions, employees may elect to have a portion of their
salary deferred and contributed to the Plan to be invested in 1 or more of 15
investment options available under the Plan. The participants' ATC contributions
are invested in an immediate participation contract or in 1 or more of 15 and 6
investment options available under the Plan in 1997 and 1996, respectively.
Contributions are made bimonthly.
Under the employer contribution provisions, each employer contributes, for each
of its employees who are participants, an amount equal to 65 percent and 60
percent of the 401(k) contributions authorized by such employee for 1997 and
1996, respectively, to a maximum of $4,750 during one calendar year, to the
extent the rate of such contributions, in effect from time to time, does not
exceed 3.9 percent and 3.6 percent in 1997 and 1996, respectively, of the
participant's compensation (matching contributions). 401(k) contributions
authorized by a participant in excess of 6 percent of participant compensation
for any pay period are disregarded for purposes of matching contributions.
Participant contributions to the 401(k) plan which are made via payroll
withholdings are limited to the lesser of $9,500 or 15 percent of participant
compensation for calendar years 1997 and 1996. Participant contributions to the
ATC are limited to 15 percent of participant compensation, not to exceed 20
percent of participant compensation in total when combined with 401(k)
contributions. Total contributions credited to a participant's account (combined
401(k), ATC, and matching contributions components) are limited to the lesser of
$30,000 or 25 percent of compensation. These limitations are determined on a
calendar year basis.
Terminated participants of the Plan are paid the current value of their 401(k)
account, ATC account, and the vested portion of their employer match account.
Participants may elect a cash distribution or a stock distribution from the JS
Common Stock Fund or the Mobil Stock Fund. All other distributions are in cash.
88
<PAGE> 89
Smurfit Packaging Corporation
Savings Plan
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
Each participant has a fully vested and nonforfeitable interest in the value of
his or her proportional share of the investment funds in which his or her 401(k)
contributions and ATC contributions are invested. Employer contributions vest
over a five-year period based on participant years of service. The nonvested
portion of a terminating participant's account constitutes a forfeiture and is
applied to reduce future employer contributions. If a participant, who has
forfeited all or a part of his or her account, is reemployed before 60 months
have elapsed after his or her employment ended, any amount he or she forfeited
will be restored to his or her account from amounts forfeited currently by other
participants.
Upon enrollment in the Plan, contributions may be directed into the following
funds by the participant or employer:
JS Common Stock Fund - Effective August 1, 1994, all employer contributions
are invested in shares of Jefferson Smurfit Corporation common stock.
Employees may elect to invest in shares of Jefferson Smurfit Corporation
common stock.
JS Group Stock Fund - Employer contributions prior to August 1, 1994 were
invested in Jefferson Smurfit Group plc common stock.
Arch Growth and Income Fund - Employee contributions prior to October 1,
1996 were invested in shares of a registered investment company that
invests in common stocks of larger corporations.
Interest Income Fund - Employee contributions prior to October 1, 1996 were
invested in shares of a registered investment company that invests in
insurance contracts which provide a specified rate of investment income for
a specified period of time and under which the payment of principal is
guaranteed.
Aetna VIP Contract Fund - After-tax employee contributions prior to January
1, 1997 were invested in "Immediate Participation Contracts" issued by a
legal reserve life insurance company selected by the Company.
89
<PAGE> 90
Smurfit Packaging Corporation
Savings Plan
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
Arch Emerging Growth Fund - Employee contributions prior to October 1, 1996
were invested in shares of a registered investment company that invests in
the common stock of emerging or established small to medium-sized companies
with a primary objective of capital appreciation rather than current
income.
Arch International Fund - Employee contributions prior to October 1, 1996
were invested in shares of a registered investment company that invests in
a diversified portfolio of international stocks (non-U.S. companies)
operating in a variety of industries.
T. Rowe Price Personal Strategy Balanced Fund - Effective October 1, 1996,
employee contributions are invested in shares of a registered investment
company that invests in common stocks, bonds, and money market securities
to provide the highest total return over time consistent with an emphasis
on both capital appreciation and income.
T. Rowe Price Equity Income Fund - Effective October 1, 1996, employee
contributions are invested in shares of a registered investment company
that invests in common stocks of established companies that have long-term
capital appreciation and dividend income.
T. Rowe Price New Horizons Fund - Effective October 1, 1996, employee
contributions are invested in shares of a registered investment company
that invests in common stocks of small growth companies in a broad range of
industries.
T. Rowe Price International Stock Fund - Effective October 1, 1996,
employee contributions are invested in shares of a registered investment
company that invests in common stocks of established non-U.S. companies.
Fidelity Contra Fund - Effective January 1, 1997, employee contributions
are invested in shares of a registered investment company that invests in
common stocks that are considered undervalued with potential for capital
growth.
Fidelity Value Fund - Effective January 1, 1997, employee contributions are
invested in shares of a registered investment company that invests in the
stock of companies that possess valuable assets or are considered
undervalued.
90
<PAGE> 91
Smurfit Packaging Corporation
Savings Plan
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
Putnam New Opportunities Fund - Effective January 1, 1997, employee
contributions are invested in shares of a registered investment company
that invests in stocks of emerging industries offering long-term growth.
T. Rowe Price Blended Stable Value Fund - Effective January 1, 1997,
employee contributions are invested in shares of a registered investment
company that invests in high-quality insurance companies and banks seeking
to maintain a stable $1 per share price.
Equity Index Trust (S&P 500) - Effective January 1, 1997, employee
contributions are invested in shares of the stocks that make up the
Standard & Poor's 500 Index.
T. Rowe Price Personal Strategy Income Fund - Effective January 1, 1997,
employee contributions are invested in shares of a registered investment
company that invests in bonds, common stocks, and money market securities
to provide the highest total return over time consistent with a primary
emphasis on income and a secondary emphasis on capital appreciation.
T. Rowe Price Personal Strategy Growth Fund - Effective January 1, 1997,
employee contributions are invested in shares of a registered investment
company that invests in common stocks, bonds, and money market securities
to provide the highest total return over time with an emphasis on capital
appreciation.
T. Rowe Price Summit Cash Reserves Fund - Effective January 1, 1997,
employee contributions are invested in shares of a registered investment
company that invests in high-quality money market securities seeking to
maintain a stable $1 per share price.
T. Rowe Price Spectrum Income Fund - Effective January 1, 1997, employee
contributions are invested in shares of a registered investment company
that invests in four domestic bond funds, an international bond fund, an
income-oriented bond fund, and a money market fund to provide a high level
of current income.
T. Rowe Price Blue Chip Growth Fund - Effective January 1, 1997, employee
contributions are invested in shares of a registered investment company
that invests in common stocks of large, well-known companies in growing
markets.
In addition to the above, former employees of Container Corporation of America
may have a portion of their plan investment held in shares of Mobil Corporation
common stock. Contributions are no longer permitted into this fund.
91
<PAGE> 92
Smurfit Packaging Corporation
Savings Plan
Notes to Financial Statements (continued)
3. INVESTMENTS
The fair value of individual investments that represent 5 percent or more of the
Plan's net assets is as follows:
<TABLE>
<CAPTION>
DECEMBER 31
1997 1996
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Jefferson Smurfit Corporation common stock
(129,754 and 104,524 shares) $1,832,770 $1,678,977
JS Group shares
(408,655 and 424,176 shares) 1,138,843 1,278,892
T. Rowe Price Blended Stable Value Fund
(2,861,069 and 2,765,686 shares) 2,861,069 2,765,686
Mobil Corporation common stock shares
(71,433 and 34,349 shares) 5,156,589 4,199,165
T. Rowe Price Equity Income Fund
(192,287 and 159,988 shares) 5,012,922 3,619,033
T. Rowe Price Personal Strategy Balanced Fund
(69,627 shares) 1,031,873 -
</TABLE>
4. PLAN TAX STATUS
The Internal Revenue Service ruled on May 30, 1996 that the Plan qualifies under
Section 401(a) and meets the requirements under Section 401(k) of the Internal
Revenue Code (IRC), and therefore, the related trust is 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. The Administrative
Committee is not aware of any course of action or series of events that has
occurred that might adversely affect the Plan's qualified status.
Participants are not subject to federal income tax on amounts contributed to
their 401(k) or employer matching contribution amounts under the Plan or on
earnings attributable to all contributions, until such time as these amounts are
distributed to or withdrawn by participants.
92
<PAGE> 93
Smurfit Packaging Corporation
Savings Plan
Notes to Financial Statements (continued)
5. YEAR 2000 (UNAUDITED)
Computer programs that have time-sensitive software may recognize a date using
"00" as the year 1900 rather than the year 2000. Beginning in the year 2000,
this could result in a system failure or miscalculations causing disruptions of
operations, including a temporary inability to process transactions or engage in
normal business activities.
The Plan is completing testing for its internal systems that impact the
processing of employee benefits. The only major system related to the Plan that
is noncompliant is the payroll system, which is currently in the process of
being updated to a new year 2000-compliant system. The payroll and all other
systems are expected to be year 2000-compliant by the end of 1998.
The Plan has initiated formal communications with its service providers to
determine the extent to which the Plan's interface systems are vulnerable to
those third parties' failure to resolve their own year 2000 issues.
This process is expected to be completed near the end of 1998.
The entire cost of the year 2000 inquiries and the systems updates are being
paid by the Company with no effects of plan assets. The Plan believes the
necessary modifications and replacement of computer systems will be completed in
a timely manner, and as a result, the year 2000 issue is not expected to pose
significant operational or financial problems for the Plan.
93
<PAGE> 94
SUPPLEMENTAL SCHEDULES
94
<PAGE> 95
Smurfit Packaging Corporation Savings Plan
Line 27a - Assets Held for Investment
December 31, 1997
<TABLE>
<CAPTION>
SHARES/ CURRENT
DESCRIPTION UNITS VALUE COST
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
JS Common Stock Fund:
Jefferson Smurfit Common Stock* 129,754 $1,832,770 $1,186,793
JS Group Stock Fund:
JS Group shares* 408,655 1,138,843 979,042
T. Rowe Price Blended Stable Value Fund 2,861,069 2,861,069 2,861,069
Shares of Mobil Corporation common stock 71,433 5,156,589 1,638,609
T. Rowe Price International Stock Fund 18,164 243,763 257,694
T. Rowe Price New Horizons Fund 34,721 808,989 760,434
T. Rowe Price Personal Strategy Balanced Fund 69,627 1,031,873 937,447
T. Rowe Price Equity Income Fund 192,287 5,012,922 4,445,563
Fidelity Value Fund 845 45,685 49,603
Fidelity Contra Fund 1,857 86,580 85,155
Putnam New Opportunities Fund 3,202 155,784 141,317
Equity Index Trust (S&P 500) 10,484 259,790 235,702
</TABLE>
95
<PAGE> 96
Smurfit Packaging Corporation Savings Plan
Line 27a - Assets Held for Investment (continued)
December 31, 1997
<TABLE>
<CAPTION>
SHARES/ CURRENT
DESCRIPTION UNITS VALUE COST
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
T. Rowe Price Personal Strategy Income Fund 1,527 19,013 18,606
T. Rowe Price Personal Strategy Growth Fund 5,008 82,724 78,093
T. Rowe Price Summit Cash Reserves Fund 51,523 51,523 51,523
T. Rowe Price Spectrum Income Fund 1,989 23,192 22,511
T. Rowe Price Blue Chip Growth Fund 19,408 469,102 426,565
Participant Loans* - 411,615 -
---------------- -----------------
$19,691,826 $14,175,726
================ =================
</TABLE>
* Parties in interest. The interest rate on participant loans issued during the
year ended December 31, 1997 ranged from 8.0 percent to 10.3 percent.
96
<PAGE> 97
Smurfit Packaging Corporation Savings Plan
Line 27d - Transactions or Series of Transactions in Excess of
5% of the Current Value of Plan Assets
Year ended December 31, 1997
<TABLE>
<CAPTION>
CURRENT VALUE
DESCRIPTION OF PURCHASE SELLING COST OF ASSET ON NET GAIN
IDENTITY OF PARTY INVOLVED ASSETS PRICE PRICE OF ASSET TRANSACTION DATE (LOSS)
- ------------------------------------------------------------------------------------------------------------------------------------
Category (iii) - Series of transactions in excess of 5% of the current value of plan assets
- -------------------------------------------------------------------------------------------
<S> <S> <C> <C> <C> <C>
JS Common Stock Fund Company stock $2,148,598 $ - $2,148,598 $2,148,598 $ -
Company stock (288,202) (316,742) (288,202) (316,742) 28,540
JS Group Stock Fund Company stock 1,027,619 - 1,027,619 1,027,619 -
Company stock (48,183) (61,844) (48,183) (61,844) 13,661
Mobil Stock Fund Company stock 1,502,151 - 1,502,151 1,502,151 -
Company stock (14,210) (42,829) (14,210) (42,829) 28,619
T. Rowe Price Blended Stable GIC 3,487,154 - 3,487,154 3,487,154 -
Value Fund GIC (626,079) (626,079) (626,079) (626,079) -
T. Rowe Price Personal Strategy Mutual fund 1,060,013 - 1,060,013 1,060,013 -
Balanced Fund Mutual fund (122,749) (127,088) (122,749) (127,088) 4,339
T. Rowe Price New Horizons Mutual fund 953,099 - 953,099 953,099 -
Fund Mutual fund (193,867) (213,533) (193,867) (213,533) 19,666
T. Rowe Price Equity Income Mutual fund 4,870,894 - 4,870,894 4,870,894 -
Fund Mutual fund (432,381) (464,668) (432,381) (464,668) 32,287
</TABLE>
Categories (i), (ii), and (iv) are not applicable.
97
<PAGE> 98
SIGNATURE
The Plans. Pursuant to the requirements of the Securities Exchange Act
of 1934, the trustees (or other persons who administer the Jefferson Smurfit
Corporation Savings Plan, the Jefferson Smurfit Corporation Hourly Savings Plan
and the Smurfit Packaging Corporation Savings Plan) have duly caused this annual
report to be signed by the undersigned thereunto duly authorized.
Jefferson Smurfit Corporation Savings Plan
Date: June 29, 1998 By: /s/ Patrick J. Moore
--------------------
Patrick J. Moore
Title: Member, Administrative Committee of
Jefferson Smurfit Corporation Retirement Plans
Jefferson Smurfit Corporation Hourly Savings Plan
Date: June 29, 1998 By: /s/ Patrick J. Moore
--------------------
Patrick J. Moore
Title: Member, Administrative Committee of
Jefferson Smurfit Corporation Retirement Plans
Smurfit Packaging Corporation Savings Plan
Date: June 29, 1998 By: /s/ Patrick J. Moore
--------------------
Patrick J. Moore
Title: Member, Administrative Committee of
Jefferson Smurfit Corporation Retirement Plans
<PAGE> 1
EXHIBIT 23.1
Consent of Independent Accountants
We consent to the incorporation by reference in the Registration Statement (Form
S-8 No. 33-82578) pertaining to the Jefferson Smurfit Corporation Savings Plan,
the Jefferson Smurfit Corporation Hourly Savings Plan, and the Smurfit Packaging
Corporation Savings Plan of our reports dated June 19, 1998, with respect to the
financial statements and schedules of Jefferson Smurfit Corporation Savings
Plan, the Jefferson Smurfit Corporation Hourly Savings Plan, and the Smurfit
Packaging Corporation Savings Plan included in this Annual Report (Form 11-K)
for the year ended December 31, 1997.
/s/ Ernst & Young LLP
St. Louis, Missouri
June 26, 1998
