________________________________________________________________________________
________________________________________________________________________________
FORM 11-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[ X ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1996
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [NO FEE REQUIRED]
For the transition period from .................... to ....................
Commission file number: (1-13888)
---------------------------------------------------------
UCAR CARBON SAVINGS PLAN
(Full title of the plan)
---------------------------------------------------------
UCAR INTERNATIONAL INC.
(Name of issuer of the securities held pursuant to the plan)
39 OLD RIDGEBURY ROAD, J-4, DANBURY, CONNECTICUT 06817-0001
(Address of principal executive office)
________________________________________________________________________________
________________________________________________________________________________
<PAGE>
TABLE OF CONTENTS
FINANCIAL STATEMENTS:
- --------------------
Statements of Net Assets Available for Plan Benefits
as of December 31, 1996 and 1995.............................. Page 3
Statement of Changes in Net Assets Available for Plan Benefits
for the Year Ended December 31, 1996.......................... Page 4
Notes to Financial Statements.................................... Page 5
SUPPLEMENTAL SCHEDULES:
- ----------------------
Schedule I: Line 27a - Schedule of Assets Held for
Investment Purposes........................................... Page 13
Schedule II: Line 27a - Schedule of Assets Held for
Investment Purposes Which Were Both Acquired and
Disposed of Within the Plan Year ............................. Page 14
Schedule III: Line 27d - Schedule of Reportable Transactions..... Page 15
INDEPENDENT AUDITORS' REPORT....................................... Page 16
- ----------------------------
INDEPENDENT AUDITORS' CONSENT...................................... Page 17
- -----------------------------
<PAGE>
UCAR CARBON SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
December 31, 1996 and 1995
1996 1995
---- ----
ASSETS:
Investments:
At fair value:
Fidelity Magellan Fund...................... $ 8,154,624 $ 7,756,495
Fidelity Equity Income Fund................. 5,839,616 3,207,525
State Street Global Advisors' Domestic
Index Fund................................ 7,363,267 3,988,147
State Street Global Advisors' Daily Bond
Market Fund............................... 1,041,591 601,564
Union Carbide Corp. common stock............ 3,914,721 3,988,013
Praxair Inc. common stock................... 4,636,162 3,786,948
UCAR International Inc. common stock ....... 11,490,374 9,743,929
United States Savings Bonds, Series "EE".... - 43,700
At contract value:
Contracts with insurance companies......... 45,686,856 41,069,962
----------- -----------
Total investments....................... 88,127,211 74,186,283
Receivable for investments sold.................. 752 585,377
Contributions receivable (payable)............... 206,826 (384)
Investment income receivable..................... 30,913 182,228
Transfers receivable from other plans............ - 35,769
Loans receivable................................. 3,803,963 3,459,511
Cash and cash equivalents........................ 3,031,070 4,354,597
Other receivable................................. 132,721 -
----------- -----------
Total assets............................ 95,333,456 82,803,381
LIABILITIES:
Investments purchased payable.................... 72,640 18,904
Other liabilities................................ 14,828 -
----------- -----------
Net assets available for plan benefits.. $ 95,245,988 $ 82,784,477
=========== ===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
3
<PAGE>
UCAR CARBON SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
YEAR ENDED DECEMBER 31, 1996
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
Transfers from other plans.................................. $ 232,219
------------
Investment income:
Dividends............................................... 1,644,513
Interest................................................ 2,390,332
Net realized and unrealized gains on investments........ 5,484,823
------------
Total investment income.............................. 9,519,668
------------
Contributions:
Employer ............................................... 1,183,502
Employees............................................... 5,790,914
Other contributions..................................... 39,997
------------
Total contributions.................................. 7,014,413
------------
Total additions...................................... 16,766,300
------------
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
Distributions to participants............................... 4,280,789
Administrative fees......................................... 24,000
------------
Total deductions..................................... 4,304,789
------------
Net additions for the year........................... 12,461,511
NET ASSETS AVAILABLE FOR PLAN BENEFITS:
Beginning of year........................................... 82,784,477
------------
End of year................................................ $ 95,245,988
============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
4
<PAGE>
UCAR CARBON SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(1) DESCRIPTION OF THE PLAN
The following brief description of UCAR Carbon Savings Plan (herein
referred to as the "Plan") is provided for general information only.
Participants should refer to the plan document for more complete
information.
ADMINISTRATION
The Plan is administered by the Savings Plan Administrative Committee.
PARTICIPATION
The Plan is available to all regular employees of UCAR Carbon Company
Inc. and participating affiliate companies (collectively, the "Company").
CONTRIBUTIONS
Participating employees can contribute 1% to 7.5% of their compensation
into the Plan as basic contributions. An additional 0.5% to 10% of
employee compensation may be contributed as supplemental contributions.
Employee 401(k) contributions are subject to applicable Internal Revenue
Code limitations.
The Company contributes on behalf of each participating employee an
amount equal to 30% of the employee's basic contributions.
VESTING AND DISTRIBUTIONS
Participants are immediately vested in 100% of their account balance
(including employer contributions plus actual earnings thereon).
Withdrawals from the 401(k) investment programs are made at retirement or
other termination of employment and may be deferred under the terms of
the Plan. Other savings plan withdrawals are subject to conditions stated
in the Plan.
PARTICIPANT ACCOUNTS
Participants' accounts are credited with participant contributions,
contributions from the Company and an allocation of investment income
from the Plan. The allocations of investment income are based upon
participants' account balances.
The Plan permits participants to borrow money from their accounts. A
minimum account balance of $2,000 is required to qualify for a loan. The
minimum loan is $ 1,000 and the maximum loan is 50% of a participants'
account balance up to a maximum loan of $50,000. Participants are
required to repay the loan plus interest. Interest is added to the
participant's account.
5
<PAGE>
UCAR CARBON SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
INVESTMENT PROGRAMS
Participants may invest their basic and supplemental contributions in one
percentage point increments in any or all of: the Equity Growth Fund, the
Equity Income Fund, the Equity Indexed Fund, the Balanced Fund, the UCAR
Stock Fund, the UCAR Discounted Stock Fund, or the Fixed Income Fund.
Earnings and dividends on investments are reinvested in the corresponding
fund. A brief description of the funds is as follows:
EQUITY GROWTH FUND - This fund currently invests in the Fidelity
Magellan Fund. The Fidelity Magellan Fund invests primarily in
common stocks spread across many sectors of the market, with above
average growth potential and a correspondingly higher level of risk.
EQUITY INCOME FUND - This fund currently invests in a Fidelity
Equity Income Fund. It aims for a yield better than the Standard &
Poor's Composite Index of 500 Stocks (the "S&P 500 Index").
EQUITY INDEXED FUND - This fund mirrors the S&P 500 Index and is
managed by State Street Global Advisors, the institutional
investment management affiliate of State Street Bank and Trust
Company (the Plan's Trustee). This fund currently invests in the
State Street Global Advisors' Domestic Index Fund.
BALANCED FUND - This fund seeks a high level, long-term rate of
return while being cautious about investment risk. The fund is
managed by State Street Global Advisors. It invests 50% in stocks of
the S&P 500 Index and 50% in bonds that correspond to those in the
Lehman Corporate and Government Bond Index. Currently this fund
invests in the State Street Global Advisors' Domestic Index and
Daily Bond Market Funds.
UCAR STOCK FUND AND UCAR DISCOUNTED STOCK FUND - On August 15, 1995,
UCAR International Inc. became a publicly held company with common
stock listed on the New York Stock Exchange. As a result, the
Company added two investment options to the Plan: the UCAR Stock
Fund and the UCAR Discounted Stock Fund.
The UCAR Stock Fund invests primarily in common stock of UCAR
International Inc. (herein referred to as "UCAR Stock"). The UCAR
Discounted Stock Fund purchases UCAR Stock at 90% of market price.
Because the stock is discounted, certain restrictions apply. The
restrictions include the following:
- Only the employee contributions and the Company's matching
contributions may be used to invest in this fund.
- Any units purchased must remain in the fund for at least twelve
months.
- Supplemental deposits or loan repayments may not be invested in
this fund.
FIXED INCOME FUND - This fund mainly invests in fixed income
contracts with highly rated insurance companies.
6
<PAGE>
UCAR CARBON SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
In addition to the preceding funds, two other funds from earlier plans
still exist (the UCC Stock Fund and the Praxair Stock Fund). Participants
may no longer invest their contributions in these funds.
Prior to February 25, 1991, the Company was a subsidiary of Union Carbide
Corporation ("UCC") and employees of the Company were eligible to
participate in the UCC plans, which included a UCC common stock
investment option. A common stock fund was established solely for the
transfer of existing investments in UCC common stock into the Plan.
On June 30, 1992, UCC spun-off its industrial gases subsidiary, Praxair
Inc. ("Praxair"). Under the terms of the spin-off, UCC distributed to
holders of its common stock one share of Praxair common stock for each
share of UCC common stock. A separate common stock fund was established
for shares of Praxair common stock awarded to Plan participants pursuant
to the spin-off.
Dividends from both the UCC Stock Fund and the Praxair Stock Fund are
automatically reinvested in the Fixed Income Fund. Participants cannot
elect to invest any future contributions in either stock fund.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The financial statements have been prepared on the accrual basis of
accounting.
INVESTMENTS
Investments are reported at market value, based upon quoted market
prices, except for the Fixed Income Fund. Fixed Income Fund investments
currently consist of investment contracts with insurance companies which
are carried at contract value since they are fully benefit responsive
(see note 7). Unrealized appreciation or depreciation of investments is
recognized currently in the financial statements. Purchases and sales of
investments are recorded on the trade date. Interest income is recorded
on the accrual basis. Dividends are recorded on the ex-dividend date.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of additions to net assets
and deductions from net assets during the reporting period. Actual
results could differ from those estimates.
7
<PAGE>
UCAR CARBON SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
(3) FEDERAL INCOME TAXES
On December 7, 1995, the Plan secured a favorable determination as a
qualified plan under Section 401(a) of the Internal Revenue Code (IRC),
and that the trust created under the Plan is exempt from Federal income
tax under Section 501(a) of the IRC. This determination letter was
applicable for amendments adopted on March 17, 1995. The Plan has been
amended since March 17, 1995. However, the Plan administrator believes
that the Plan is designed and is currently being operated in compliance
with the applicable provisions of the IRC.
Employees are not subject to income tax on their salary reduction
contributions, Company payments or other accumulations in their accounts
until a distribution is made from the Plan. Employee after-tax
contributions are generally not subject to income tax upon distribution
from the Plan. An employee may withdraw an amount equal to his/her
after-tax contributions made prior to 1987 without incurring any income
tax. However, in the case of employee after-tax contributions made after
1986 an employee may exclude from income only the portion of the
distribution that bears the same ratio to the total distribution as the
employee's after-tax contributions bears to the total value of the
employee's after-tax account. For employees making deferred contributions
to the Plan in accordance with Internal Revenue Service Code Section
401(k), distributions are generally taxed as ordinary income subject to
special tax treatment afforded certain distributions that qualify as lump
sum distributions under the Internal Revenue Code.
(4) EXPENSES
All costs and expenses, including transfer taxes and brokerage
commissions incurred in connection with (i) the sale and redemption of
bonds in the U.S. Savings Bond Fund or stock of UCC or Praxair or (ii)
the purchase and sale of stock in the UCAR Stock Fund or UCAR Discounted
Stock Fund, shall be deducted from the proceeds of such stock or bonds
and in the case of purchases for the UCAR Stock Fund or UCAR Discounted
Stock Fund, charged to the applicable fund. Fees of the Fixed Income Fund
investment managers are paid by the Plan. For the year ended December 31,
1996 and 1995, the Company paid all costs of administration and bore the
expenses of collecting and distributing amounts from and to the
participants and of keeping the records of the Plan.
(5) PLAN TERMINATION
Although it has not expressed any intent to do so, the Company reserves
the right to amend, modify, suspend or terminate the Plan. In the event
of Plan termination, participants would receive the full value of their
accounts.
8
<PAGE>
<TABLE>
UCAR CARBON SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
(6) NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
<CAPTION>
EQUITY EQUITY EQUITY UCC PRAXAIR UCAR
GROWTH INCOME INDEXED BALANCED STOCK STOCK STOCK
DECEMBER 31, 1996 FUND FUND FUND FUND FUND FUND FUND
----------------- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments:
At fair value:
Fidelity Magellan Fund .................... $8,154,624 $ -- $ -- $ -- $ -- $ -- $ --
Fidelity Equity Income Fund ............... -- 5,839,616 -- -- -- -- --
State Street Global Advisors':
Domestic Index Fund...................... -- -- 6,055,907 1,307,360 -- -- --
Daily Bond Market Fund .................. -- -- -- 1,041,591 -- -- --
Union Carbide Corp. common stock .......... -- -- -- -- 3,914,721 -- --
Praxair Inc. common stock ................. -- -- -- -- -- 4,636,162 --
UCAR International Inc. common stock ...... -- -- -- -- -- -- 10,608,745
At contract value:
Contracts with insurance companies ........ -- -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- ----------
Total investments ....................... 8,154,624 5,839,616 6,055,907 2,348,951 3,914,721 4,636,162 10,608,745
Receivable for investments sold ................ -- -- -- -- -- -- --
Contributions receivable (payable).............. 21,898 13,882 13,990 8,019 -- -- 3,964
Investment income receivable ................... -- -- -- -- -- -- 1,566
Transfers receivable (payable) ................. (43,902) 40,322 45,803 142 -- -- 15,194
Loans receivable ............................... -- -- -- -- -- -- --
Cash and cash equivalents ...................... -- 289,898 4,623 -- 491 213 352,089
Other receivable ............................... 307 94,423 344 -- 8,093 6,096 19,682
--------- --------- --------- --------- --------- --------- ----------
Total assets ............................ 8,132,927 6,278,141 6,120,667 2,357,112 3,923,305 4,642,471 11,001,240
LIABILITIES:
Investments purchased payable .................. -- -- -- -- -- -- 72,640
Other liabilities -- -- -- 7,431 -- -- --
--------- --------- --------- --------- --------- --------- ----------
Total liabilities -- -- -- 7,431 -- -- 72,640
Net assets available for plan benefits... $8,132,927 $6,278,141 $6,120,667 $2,349,681 $3,923,305 $4,642,471 $10,928,600
========= ========= ========= ========= ========= ========= ==========
<CAPTION>
UCAR
DISCOUNTED FIXED TOTAL
STOCK INCOME SAVINGS
DECEMBER 31, 1996 FUND FUND LOANS PLAN
----------------- ---- ---- ---- -----
<S> <C> <C> <C> <C>
ASSETS:
Investments:
At fair value:
Fidelity Magellan Fund ..................... $ -- $ -- $ -- $ 8,154,624
Fidelity Equity Income Fund ................ -- -- -- 5,839,616
State Street Global Advisors':
Domestic Index Fund ...................... -- -- -- 7,363,267
Daily Bond Market Fund ................... -- -- -- 1,041,591
Union Carbide Corp. common stock ........... -- -- -- 3,914,721
Praxair Inc. common stock .................. -- -- -- 4,636,162
UCAR International Inc. common stock ....... 881,629 -- -- 11,490,374
At contract value:
Contracts with insurance companies ......... -- 45,686,856 -- 45,686,856
---------- ----------- ---------- -----------
Total investments ........................ 881,629 45,686,856 -- 88,127,211
Receivable for investments sold ................. 752 -- -- 752
Contributions receivable (payable)............... 24,201 120,872 -- 206,826
Investment income receivable .................... -- 29,347 -- 30,913
Transfers receivable (payable) .................. -- (11,151) (46,408) --
Loans receivable ................................ -- -- 3,803,963 3,803,963
Cash and cash equivalents ....................... -- 2,323,964 59,792 3,031,070
Other receivable................................. 3,521 255 -- 132,721
---------- ----------- ---------- ---------
Total Assets 910,103 48,150,143 3,817,347 95,333,456
LIABILITIES:
Investments purchased payable ................... -- -- -- 72,640
Other liabilities................................ 571 6,826 -- 14,828
---------- ----------- ---------- -----------
Total Liabilities......................... 571 6,826 -- 87,468
Net assets available for plan benefits ... $ 909,532 $ 48,143,317 $ 3,817,347 $ 95,245,988
========== =========== ========== ===========
9
</TABLE>
<PAGE>
<TABLE>
UCAR CARBON SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
(6) NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND (Continued)
<CAPTION>
EQUITY EQUITY EQUITY UCC PRAXAIR UCAR
GROWTH INCOME INDEXED BALANCED STOCK STOCK STOCK
DECEMBER 31, 1995 FUND FUND FUND FUND FUND FUND FUND
----------------- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments:
At fair value:
Fidelity Magellan Fund .................... $7,756,495 $ -- $ -- $ -- $ -- $ -- $ --
Fidelity Equity Income Fund ............... -- 3,207,525 -- -- -- -- --
State Street Global Advisors':
Domestic Index Fund...................... -- -- 3,295,545 692,602 -- -- --
Daily Bond Market Fund .................. -- -- -- 601,564 -- -- --
Union Carbide Corp. common stock .......... -- -- -- -- 3,988,013 -- --
Praxair Inc. common stock ................. -- -- -- -- -- 3,786,948 --
UCAR International Inc. common stock ...... -- -- -- -- -- -- 9,615,375
United States Savings Bonds, Series "EE"... -- -- -- -- -- -- --
At contract value:
Contracts with insurance companies ........ -- -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- ---------
Total investments ....................... 7,756,495 3,207,525 3,295,545 1,294,166 3,988,013 3,786,948 9,615,375
Receivable for investments sold ................ -- -- -- -- -- -- 34,984
Contributions receivable (payable).............. -- -- -- -- -- -- --
Investment income receivable ................... -- -- -- -- -- -- --
Transfers receivable from other plans .......... 7,598 8,841 -- 294 -- -- 9,420
Transfers receivable (payable) ................. 9,811 310,478 17,268 9,712 1,167 (6,720) 27,986
Loans receivable ............................... -- -- -- -- -- -- --
Cash and cash equivalents ...................... 1,054 2,655 2,000 -- 6,210 11,060 16,558
--------- --------- --------- --------- --------- --------- ---------
Total assets ............................ 7,774,958 3,529,499 3,314,813 1,304,172 3,995,390 3,791,288 9,704,323
LIABILITIES:
Investments purchased payable .................. -- -- -- -- -- -- 18,904
--------- --------- --------- --------- --------- --------- ---------
Net assets available for plan benefits... $7,774,958 $3,529,499 $3,314,813 $1,304,172 $3,995,390 $3,791,288 $9,685,419
========= ========= ========= ========= ========= ========= =========
<CAPTION>
UCAR U.S.
DISCOUNTED SAVINGS FIXED TOTAL
STOCK BOND INCOME SAVINGS
DECEMBER 31, 1995 FUND FUND FUND LOANS PLAN
----------------- ---- ---- ---- ----- ----
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments:
At fair value:
Fidelity Magellan Fund ..................... $ -- $ -- $ -- $ -- $ 7,756,495
Fidelity Equity Income Fund ................ -- -- -- -- 3,207,525
State Street Global Advisors':
Domestic Index Fund ...................... -- -- -- -- 3,988,147
Daily Bond Market Fund ................... -- -- -- -- 601,564
Union Carbide Corp. common stock ........... -- -- -- -- 3,988,013
Praxair Inc. common stock .................. -- -- -- -- 3,786,948
UCAR International Inc. common stock ....... 128,554 -- -- -- 9,743,929
United States Savings Bonds, Series "EE" ... -- 43,700 -- -- 43,700
At contract value:
Contracts with insurance companies ......... -- -- 41,069,962 -- 41,069,962
---------- ----------- ----------- ----------- -----------
Total investments ........................ 128,554 43,700 41,069,962 -- 74,186,283
Receivable for investments sold ................. 15,300 -- 535,093 -- 585,377
Contributions receivable (payable)............... -- -- (384) -- (384)
Investment income receivable .................... -- -- 179,495 2,733 182,228
Transfers receivable from other plans ........... -- -- 9,616 -- 35,769
Transfers receivable (payable) .................. (12,966) (22,800) (298,806) (35,130) --
Loans receivable ................................ -- -- -- 3,459,511 3,459,511
Cash and cash equivalents ....................... 1,716 3,000 3,689,056 621,288 4,354,597
---------- ----------- ----------- ----------- -----------
Total assets ............................. 132,604 23,900 45,184,032 4,048,402 82,803,381
LIABILITIES:
Investments purchased payable ................... -- -- -- -- 18,904
---------- ----------- ----------- ----------- -----------
Net assets available for plan benefits ... $ 132,604 $ 23,900 $ 45,184,032 $ 4,048,402 $ 82,784,477
========== =========== =========== =========== ===========
10
</TABLE>
<PAGE>
UCAR CARBON SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
(7) FIXED INCOME FUND
The following is a summary of investments in contracts with insurance
companies at contract value within the Fixed Income Fund at December 31,
1996 and 1995. Contract value represents original deposits under the
contract credited with actual earnings and charged for expenses and
withdrawals. Contract value approximates fair value.
1996 1995
---- ----
Metropolitan Life Insurance Company:
Contract No. 13919, 7.84%, due 3/31/01....... $ 2,873,811 $ 3,239,783
Transamerica Life Insurance:
Contract No. GIC, 6.23%, due 10/01/01........ 6,945,121 5,501,663
Life of Virginia:
Contract No. 2832, 8.14%, due 9/30/00........ 2,845,013 3,197,999
The Protective Life Insurance Company:
Contract No. 1, 6.05%, due 9/30/99........... 2,066,179 2,369,271
Contract No. 916, 5.39%, due 3/31/00......... 1,762,978 2,034,347
The Prudential Insurance Company:
Contract No. 6820-211, 8.27%, due 3/15/96.... - 3,100,517
New York Life Insurance Company:
Contract No. 06740, 5.70%, due 3/31/99....... 5,189,007 5,970,272
Allstate Life Insurance Company:
Contract No. 5618, 7.22%, due 9/30/00........ 4,448,289 5,043,232
Principal Mutual:
Contract No. 10081, 5.20%, due 9/30/00....... 4,979,195 5,755,400
CNA:
Contract No. 12972, 7.12%, due 9/30/00....... 4,279,990 4,857,478
Combined Insurance Company of America:
Contract No. CG1061, 6.45%, due 3/31/97...... 1,510,827 -
People Security Life
Contract No. 00614FR, 6.83%, due 9/30/01..... 2,646,565 -
Providian Capital
Contract No. 625FR, 6.94%, due 9/30/01....... 2,647,851 -
Sunamerica Life Insurance Co.
Contract No. 4667, 6.56%, due 3/31/02........ 3,492,030 -
----------- -----------
Total contracts with
insurance companies................... $ 45,686,856 $ 41,069,962
=========== ===========
The crediting interest rates, shown above, are determined at the
inception of the contracts. The average yield for contracts with
investment companies in the aggregate was 6.9% and 6.3% for the years
ended December 31, 1996 and 1995, respectively.
11
<PAGE>
<TABLE>
UCAR CARBON SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
(8) CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
<CAPTION>
EQUITY EQUITY EQUITY UCC PRAXAIR
GROWTH INCOME INDEXED BALANCED STOCK STOCK
YEAR ENDED DECEMBER 31, 1996 FUND FUND FUND FUND FUND FUND
---------------------------- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
Transfer from other plans .......................... $ 34,583 $ 24,709 $ 21,334 $ 16,099 $ -- $ --
--------- --------- --------- --------- --------- ---------
Investment income:
Dividends ........................................ 1,288,205 356,308 -- -- -- --
Interest ......................................... -- -- -- -- -- --
Net realized and unrealized gain on investments... (384,432) 588,880 992,763 237,819 394,217 1,372,149
--------- --------- --------- --------- --------- ---------
Total investment income ..................... 903,773 945,188 992,763 237,819 394,217 1,372,149
--------- --------- --------- --------- --------- ---------
Contributions:
Employer ......................................... 127,372 63,303 59,060 37,300 -- --
Employees ........................................ 676,105 328,808 313,613 195,846 -- --
Other contributions............................... -- 39,997 -- -- -- --
--------- --------- --------- --------- --------- ---------
Total contributions ......................... 803,477 432,108 372,673 233,146 -- --
--------- --------- --------- --------- --------- ---------
Loan repayment ..................................... 72,809 24,581 34,396 11,511 -- --
Transfer between funds ............................. (1,169,194) 1,416,828 1,487,952 634,480 (444,485) (505,926)
--------- --------- --------- --------- --------- ---------
Total additions ............................. 645,448 2,843,414 2,909,118 1,133,055 (50,268) 866,223
--------- --------- --------- --------- --------- ---------
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
Distributions to participants ...................... 231,183 57,895 41,355 41,439 15,629 9,795
Loans to participants .............................. 56,296 36,877 61,909 46,107 6,188 5,245
Administrative fees ................................ -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total deductions ............................ 287,479 94,772 103,264 87,546 21,817 15,040
--------- --------- --------- --------- --------- ---------
Net additions for the year .................. 357,969 2,748,642 2,805,854 1,045,509 (72,085) 851,183
NET ASSETS AVAILABLE FOR PLAN BENEFITS:
Beginning of the year .............................. 7,774,958 3,529,499 3,314,813 1,304,172 3,995,390 3,791,288
--------- --------- --------- --------- --------- ---------
End of year ........................................ $8,132,927 $6,278,141 $6,120,667 $2,349,681 $3,923,305 $4,642,471
========= ========= ========= ========= ========= =========
<CAPTION>
UCAR U.S.
UCAR DISCOUNTED SAVINGS FIXED TOTAL
STOCK STOCK BOND INCOME SAVINGS
YEAR ENDED DECEMBER 31, 1996 FUND FUND FUND FUND LOANS PLAN
---------------------------- ---- ---- ---- ---- ----- ----
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
Transfer from other plans .......................... $ 84,858 $ 670 $ -- $ 49,966 $ -- $ 232,219
---------- ------- ------ ---------- --------- ----------
Investment income:
Dividends ........................................ -- -- -- -- -- 1,644,513
Interest ......................................... -- -- 12,891 2,079,523 297,918 2,390,332
Net realized and unrealized gain on investments... 1,128,824 4,524 -- 1,147,743 2,336 5,484,823
---------- ------- ------ ---------- --------- ----------
Total investment income ..................... 1,128,824 4,524 12,891 3,227,266 300,254 9,519,668
---------- ------- ------ ---------- --------- ----------
Contributions:
Employer ......................................... 20,836 171,424 676 703,531 -- 1,183,502
Employees ........................................ 93,867 614,398 -- 3,568,277 -- 5,790,914
Other contributions .............................. -- -- -- -- -- 39,997
---------- ------- ------ ---------- --------- ----------
Total contributions ......................... 114,703 785,822 676 4,271,808 -- 7,014,413
---------- ------- ------ ---------- --------- ----------
Loan repayment ..................................... 9,355 -- -- 1,912,176 (2,064,828) --
Transfer between funds ............................. 100,608 (4,552) (24,906) (1,490,805) -- --
---------- ------- ------ ---------- --------- ----------
Total additions ............................. 1,438,348 786,464 (11,339) 7,970,411 (1,764,574) 16,766,300
---------- ------- ------ ---------- --------- ----------
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
Distributions to participants ...................... 120,112 9,536 12,561 3,592,604 148,680 4,280,789
Loans to participants .............................. 75,055 -- -- 1,394,522 (1,682,199) --
Administrative fees ................................ -- -- -- 24,000 -- 24,000
---------- ------- ------ ---------- --------- ----------
Total deductions ............................ 195,167 9,536 12,561 5,011,126 (1,533,519) 4,304,789
---------- ------- ------ ---------- --------- ----------
Net additions for the year .................. 1,243,181 776,928 (23,900) 2,959,285 (231,055) 12,461,511
NET ASSETS AVAILABLE FOR PLAN BENEFITS:
Beginning of the year .............................. 9,685,419 132,604 23,900 45,184,032 4,048,402 82,784,477
---------- ------- ------ ---------- --------- ----------
End of year ........................................ $10,928,600 $909,532 $ -- $48,143,317 $3,817,347 $95,245,988
========== ======= ====== ========== ========= ==========
12
</TABLE>
<PAGE>
<TABLE>
SCHEDULE I
UCAR CARBON SAVINGS PLAN
LINE 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1996
<CAPTION>
MARKET
DESCRIPTION COST VALUE
----------- ---- -----
<S> <C> <C>
* UCAR International Inc. common stock, 305,392 shares, par value $.01... $ 8,922,372 $ 11,490,374
Union Carbide Corp. common stock, 95,773 shares, par value $1.......... 855,943 3,914,721
Praxair Inc. common stock, 100,513 shares, par value $.01.............. 1,229,776 4,636,162
Fidelity Equity Income Fund, 136,344 shares............................ 5,047,798 5,839,616
Fidelity Magellan Fund, 101,111 shares................................. 7,821,467 8,154,624
* State Street Global Advisors' Daily Bond Market Fund,
75,818 shares................................................... 963,128 1,041,591
* State Street Global Advisors' Domestic Index Fund, 61,667 shares....... 5,450,189 7,363,267
Contracts with insurance companies, at contract value:
Metropolitan Life Insurance Company:
Contract No. 13919, 7.84%, due 3/31/01.......................... 2,873,811 2,873,811
The Transamerica Life Co.:
Contract No. GIC, 6.23 %, due 10/01/01.......................... 6,945,121 6,945,121
Life Of Virginia:
Contract No. 2832, 8.14%, due 9/30/00........................... 2,845,013 2,845,013
Protective Insurance Company:
Contract No. 1, 6.05%, due 9/30/99.............................. 2,066,179 2,066,179
Contract No. 916 , 5.39%, due 3/31/00........................... 1,762,978 1,762,978
New York Life Insurance:
Contract No. 06740, 5.70% due 3/31/99........................... 5,189,007 5,189,007
Allstate Life Insurance Company:
Contract No. 5618, 7.22%, due 9/30/00........................... 4,448,289 4,448,289
Principal Mutual:
Contract No. 10081, 5.20%, due 9/30/00.......................... 4,979,195 4,979,195
CNA:
Contract No. 12972, 7.12%, due 9/30/00.......................... 4,279,990 4,279,990
Combined Insurance Company of America:
Contract No. CG1061, 6.45%, due 3/31/97......................... 1,510,827 1,510,827
People Security Life:
Contract No. 00614FR, 6.83%, due 9/30/01........................ 2,646,565 2,646,565
Providian Capital:
Contract No. 625FR, 6.94%, due 9/30/01.......................... 2,647,851 2,647,851
Sunamerica Life Insurance Co.
Contract No. 4667, 6.56%, due 3/31/02........................... 3,492,030 3,492,030
----------- -----------
Subtotal..................................................... 75,977,529 88,127,211
Loans to participants.................................................... 3,817,347 3,817,347
----------- -----------
Total.................................................. $ 79,794,876 $ 91,944,558
=========== ===========
</TABLE>
* REPRESENTS PARTY-IN-INTEREST.
13
<PAGE>
SCHEDULE II
UCAR CARBON SAVINGS PLAN
LINE 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
WHICH WERE BOTH ACQUIRED AND DISPOSED OF WITHIN THE PLAN YEAR
DECEMBER 31, 1996
COST OF PROCEEDS OF
DESCRIPTION ACQUISITION DISPOSITION
----------- ----------- -----------
Safeco Life Insurance Co.:
GIC, 6.86%, due 9/30/01........... $ 2,814,288 $ 2,814,288
14
<PAGE>
<TABLE>
SCHEDULE III
UCAR CARBON SAVINGS PLAN
LINE 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
DECEMBER 31, 1996
<CAPTION>
EXPENSE CURRENT
INCURRED VALUE
DESCRIPTION PURCHASE SELLING LEASE WITH COST OF TRANSACTION GAIN
PARTY INVOLVED OF ASSETS PRICE PRICE RENTAL TRANSACTION ASSETS DATE (LOSS)
-------------- --------- ----- ----- ------ ----------- ------ ---- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Transamerica Life Co. GIC Fund $2,796,536 $ - $ - $ - $2,796,536 $2,796,536 $ -
Transamerica Life Co. GIC Fund - 1,353,078 - - 1,353,078 1,353,078 -
--------- ---------- ---- --------- --------- --------- -------
Total (14 Purchases, 9 Sales) $2,796,536 $1,353,078 $ - $ - $4,149,614 $4,149,614 $ -
Safeco Life Insurance Co. GIC Fund $2,814,288 $ - $ - $ - $2,814,288 $2,814,288 $ -
Safeco Life Insurance Co. GIC Fund - 2,814,288 - - 2,814,288 2,814,288 -
--------- --------- ---- --------- --------- --------- -------
Total (3 Purchases, 1 Sale) $2,814,288 $2,814,288 $ - $ - $5,628,576 $5,628,576 $ -
* UCAR International Inc. stock Common Stock $4,418,448 $ - $ - $ - $4,418,448 $4,418,448 $ -
* UCAR International Inc. Stock Common Stock - 4,546,023 - - 4,165,841 4,546,023 380,182
--------- --------- ---- --------- --------- --------- -------
Total (100 Purchases, 94 Sales) $4,418,448 $4,546,023 $ - $ - $8,584,289 $8,964,471 $ 380,182
Fidelity Investments Fidelity Magellan Fund $3,659,325 $ - $ - $ - $3,659,325 $3,659,325 $ -
Fidelity Investments Fidelity Magellan Fund - 2,882,941 - - 3,028,428 2,882,941 (145,487)
--------- --------- ---- --------- --------- --------- -------
Total (88 Purchases, 132 Sales) $3,659,325 $2,882,941 $ - $ - $6,687,753 $6,542,266 $(145,487)
</TABLE>
* REPRESENTS PARTY-IN-INTEREST.
15
<PAGE>
UCAR CARBON SAVINGS PLAN
INDEPENDENT AUDITORS' REPORT
To the Plan Administrators of the UCAR Carbon Savings Plan:
We have audited the accompanying statements of net assets available for plan
benefits of the UCAR Carbon Savings Plan as of December 31, 1996 and 1995, and
the related statement of changes in net assets available for plan benefits for
the year ended December 31, 1996. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free 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 of the Plan as of
December 31, 1996 and 1995, and the changes in net assets available for plan
benefits for the year ended December 31, 1996 in conformity with generally
accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules I, II and III
are presented for the purpose of additional analysis and are not a required part
of the basic financial statements but are supplementary information required by
the Department of Labor's Rules and Regulations for Reporting and Disclosure
under the Employee Retirement Income Security Act of 1974. The supplemental
schedules have been subjected to the auditing procedures applied in the audits
of the basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements taken as a
whole.
/s/ KPMG Peat Marwick LLP
- -------------------------
KPMG Peat Marwick LLP
Stamford, Connecticut
June 26, 1997
16
<PAGE>
UCAR CARBON SAVINGS PLAN
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in the Registration Statement on
Form S-8 (No. 33-95548) of UCAR International Inc. of our report dated June 20,
1997 appearing on page 16 of this Annual Report on Form 11-K for the year ended
December 31, 1996.
/s/ KPMG Peat Marwick LLP
- -------------------------
KPMG Peat Marwick LLP
Stamford, Connecticut
June 26, 1997
17
<PAGE>
UCAR CARBON SAVINGS PLAN
SIGNATURE
Pursuant to the requirement of the Securities Exchange Act of 1934, the trustees
(or other persons who administer the employee benefit plan) have duly caused
this annual report to be signed on its behalf by the undersigned hereunto duly
authorized.
UCAR CARBON SAVINGS PLAN
Date: June 26, 1997 By: /s/ Fred C. Wolf
-----------------
Fred C. Wolf
VICE PRESIDENT, ADMINISTRATION
AND STRATEGIC PROJECTS
MEMBER OF THE SAVINGS PLAN
ADMINISTRATIVE COMMITTEE
18
