SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------------
FORM 11-K
--------------------
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Mark One)
[ X ] ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED, EFFECTIVE OCTOBER 7, 1996].
For the fiscal year ended December 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from .................... to ....................
Commission file number: (1-13888)
---------------------------------------------------------
UCAR CARBON SAVINGS PLAN
(Full title of the plan)
---------------------------------------------------------
UCAR INTERNATIONAL INC.
-----------------------
(Name of issuer of the securities held pursuant to the plan)
3102 WEST END AVENUE, SUITE 1100, NASHVILLE, TN 37203
-----------------------------------------------------
(Address of principal executive office)
<PAGE>
TABLE OF CONTENTS
FINANCIAL STATEMENTS:
Statements of Net Assets Available for Plan Benefits
as of December 31, 1998 and 1997............................... Page 3
Statement of Changes in Net Assets Available for Plan Benefits
for the Year Ended December 31, 1998........................... Page 4
Notes to Financial Statements..................................... Page 5
SUPPLEMENTAL SCHEDULES:
Schedule I: Line 27a - Schedule of Assets Held for Investment Purposes
Page 14
Schedule II: Line 27d - Schedule of Reportable Transactions....... Page 15
INDEPENDENT AUDITORS' REPORT......................................... Page 16
INDEPENDENT AUDITORS' CONSENT........................................ Page 17
2
<PAGE>
UCAR CARBON SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1998 AND 1997
1998 1997
---- ----
ASSETS:
Investments, at fair value
Registered investment companies:
Vanguard Windsor II Fund....................... $ 21,211,071 $ 21,175,061
Vanguard 500 Index Fund........................ 16,202,910 12,004,011
Vanguard Retirement Savings Trust (UCAR
Stable Value Fund).......................... 14,674,700 6,509,670
Vanguard LifeStrategy Conservative Growth Fund. 4,950,827 4,400,488
Vanguard PRIMECAP Fund......................... 2,945,778 --
Vanguard LifeStrategy Moderate Growth Fund..... 2,440,818 --
Vanguard LifeStrategy Growth Fund.............. 1,328,690 --
Vanguard International Growth Fund............. 1,073,353 --
Vanguard LifeStrategy Income Fund.............. 1,057,725 --
UAM ICM Small Company Portfolio................ 1,081,300 --
------------ ------------
66,967,172 44,089,230
UCAR International Inc. Common Stock Fund........ 6,419,372 10,469,096
UCAR International Inc. Discounted Common
Stock Fund.................................... 1,156,207 1,507,521
Union Carbide Corp. Common Stock Fund............ 3,203,320 3,701,114
Praxair Inc. Common Stock Fund................... 2,821,090 4,118,112
Participant loans receivable..................... 3,372,564 4,149,523
------------ ------------
83,939,725 68,034,596
Investments, at contract value
Contracts with insurance companies (UCAR
Stable Value Fund)............................ 32,680,772 42,236,905
------------ ------------
Total investments........................... 116,620,497 110,271,501
Investment income receivable........................ -- 48,917
Cash and cash equivalents........................... -- 292,531
------------ ------------
Total assets................................ 116,620,497 110,612,949
LIABILITIES:
Other liabilities................................... -- --
------------ ------------
Net assets available for plan benefits...... $116,620,497 $110,612,949
============ ============
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, 1998
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
Contributions:
Employer................................................... $ 2,129,748
Participants............................................... 6,150,538
------------
Total contributions..................................... 8,280,286
------------
Investment income:
Interest and dividend income, investments.................. 3,174,458
Interest income, participant loans......................... 307,925
Net appreciation in fair value of investments.............. 537,988
------------
Total investment income................................. 4,020,371
------------
Transfers from other plans.................................... 5,352
------------
Total additions......................................... 12,306,009
------------
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
Distributions to participants................................. 6,296,378
Other deductions.............................................. 2,083
------------
Total deductions........................................ 6,298,461
------------
Net additions for the year.............................. 6,007,548
NET ASSETS AVAILABLE FOR PLAN BENEFITS:
Beginning of year............................................. 110,612,949
------------
End of year................................................... $116,620,497
============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
4
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(1) DESCRIPTION OF THE PLAN
The following brief description of the 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.
GENERAL
The Plan is a defined contribution plan consisting of several separate
investment funds as described below.
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
contributions are subject to applicable Internal Revenue Code limitations.
The Company contributes on behalf of each participating employee an amount
equal to 50% of the employee's basic contributions. Prior to 1998, the
Company contributed on behalf of each participant 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) plans can be made for financial hardship, after
age 59 1/2, retirement or other termination of employment or 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.
5
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
PARTICIPANT LOANS
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 a fixed interest rate based on current lending
rates. Interest is added to the participant's account.
TRUSTEE AND RECORDKEEPER
Effective December 31, 1997, the Plan changed its trustee from State Street
Bank and Trust Company to Vanguard Fiduciary Trust Company and its
recordkeeper from William M. Mercer Inc. to The Vanguard Group. In
conjunction with the change, participant assets were transferred and
automatically invested in some of the Plan's new investment options. The
new investment options are discussed below under Investment Options.
INVESTMENT OPTIONS
During the plan year ending December 31, 1998, participants were able to
allocate their basic and supplemental contributions in one percentage point
increments in any or all of the following investment options:
VANGUARD WINDSOR II FUND: Seeks to provide long-term growth of capital
and income from dividends by investing in a diversified group of
out-of-favor stocks of large-capitalization companies. The stocks
generally sell at prices below the overall market average compared to
their dividend income and future return potential.
VANGUARD 500 INDEX FUND: Seeks to provide long-term growth of capital
and income from dividends by holding all of the 500 stocks that make up
the unmanaged Standard & Poor's 500 Composite Stock Price Index, a
widely recognized benchmark of U.S. stock market performance.
VANGUARD LIFESTRATEGY CONSERVATIVE GROWTH FUND: Seeks to provide a high
level of income and moderate long-term growth of capital and income by
investing in five Vanguard funds: a domestic stock fund, an
international stock fund, two bond funds, and an asset allocation fund.
The fund's asset allocation ranges are expected to be 25%-50% stocks,
50%-75% bonds, and 0%-25% cash investments.
VANGUARD PRIMECAP FUND: Seeks long-term growth of capital by investing
in stocks of companies with above-average prospects for continued
earnings growth, strong industry positions, and skilled management
teams.
VANGUARD LIFESTRATEGY MODERATE GROWTH FUND: Seeks to provide a
reasonable level of income and long-term growth of capital and income
by investing in four Vanguard funds: a domestic stock fund, an
international stock fund, a bond fund, and an asset allocation fund.
The fund's asset allocation ranges are expected to be 45%-70% stocks,
30%-55% bonds, and 0%-25% cash investments.
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
VANGUARD LIFESTRATEGY GROWTH FUND: Seeks to provide long-term growth of
capital by investing in four other Vanguard funds: a domestic stock
fund, an international stock fund, a bond fund, and an asset allocation
fund. The fund's asset allocation ranges are expected to be 65%-90%
stocks, 10%-35% bonds, and 0%-25% cash investments.
VANGUARD INTERNATIONAL GROWTH FUND: Seeks to provide long-term growth
of capital by investing in stocks of high-quality, seasoned companies
based outside the United States. Stocks are selected from more than 15
countries.
VANGUARD LIFESTRATEGY INCOME FUND: Seeks to provide a high level of
income by investing in four Vanguard funds: a stock fund, two bond
funds, and an asset allocation fund. The fund's asset allocation ranges
are expected to be 5%-30% stocks, 70%-95% bonds, and 0%-25% cash
investments.
UAM ICM SMALL COMPANY PORTFOLIO: Seeks long-term total return,
consistent with reasonable risk. The fund invests at least 80% of
assets in common stocks of companies with market capitalizations
between $50 million and $700 million.
UCAR INTERNATIONAL INC. COMMON STOCK FUND and UCAR INTERNATIONAL
INC. DISCOUNTED COMMON STOCK FUND: Seek to provide the potential
for long-term growth through increases in the value of the common
stock of UCAR International Inc. (herein referred to as "UCAR
Stock"). The UCAR Discounted Stock Fund purchases UCAR Stock at 90%
of the market price. Because the stock is discounted, certain
restrictions apply. The restrictions include the following:
. Only employee contributions and the Company's matching
contribution 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.
UCAR Stock is publicly traded on the New York Stock Exchange and had a
closing price of $17 13/16 per share at December 31, 1998. At June 18,
1999, the closing price of UCAR Stock was $24 9/16.
UCAR STABLE VALUE FUND: Seeks to provide a high level of income and a
stable unit value of $1 in most cases. This fund invests in fixed
income contracts with highly rated insurance companies. As these
contracts expire and as new money is invested, the money is invested in
the Vanguard Retirement Savings Trust. This Trust invests primarily in
investment contracts issued and backed by financial institutions and in
alternative contracts backed by high quality bonds and bond mutual
funds owned by the Trust.
In addition to the preceding funds, two other funds from earlier plans
still exist (the Union Carbide Corp. Common Stock Fund and the Praxair Inc.
Common Stock Fund). Participants may no longer invest their contributions
in these funds or make transfers into these funds. Transfers out of these
funds are still allowed. These funds seek to provide the potential for
long-term growth through increases in the value of the common stock and
income from dividends of Union Carbide Corporation and Praxair
Incorporated. Dividends from both the Union Carbide Corp. Common Stock Fund
and the Praxair Inc. Common Stock Fund are automatically reinvested in the
UCAR Stable Value Fund.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The financial statements of the Plan are prepared under the accrual method
of accounting.
INVESTMENT VALUATION AND INCOME RECOGNITION
Investments are reported at market value, based upon quoted market prices,
except for the contracts with insurance companies within the UCAR Stable
Value Fund. These contracts with insurance companies are carried at
contract value since they are fully benefit-responsive (see note 7).
Unrealized appreciation or depreciation of investments carried at market
value 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.
PAYMENT OF BENEFITS
Benefits are recorded when paid.
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.
RECLASSIFICATIONS
Certain reclassifications have been made to the 1997 amounts in order to
conform to the 1998 presentation.
(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.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(4) PLAN EXPENSES
All costs and expenses, including transfer taxes and brokerage commissions
incurred in connection with the sale of stock of Union Carbide Corp. or
Praxair Inc. shall be deducted from the proceeds of such sale. Similar
costs and expenses incurred in connection with the sale or purchase of
stock in the UCAR International Inc. Common Stock Fund or UCAR
International Inc. Discounted Common Stock Fund are charged to the
applicable fund. For the year ended December 31, 1998, 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, except for certain loan origination fees and annual
loan maintenance fees bore by the participants. For the year ended December
31, 1997, 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.
(6) RELATED PARTY TRANSACTIONS
The Plan invests in shares of mutual funds managed by an affiliate of
Vanguard Fiduciary Trust Company ("VFTC"). VFTC acts as trustee for only
those investments as defined by the Plan. Transactions in such investments
qualify as party-in-interest transactions which are exempt from the
prohibited transactions rules.
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(7) INVESTMENT CONTRACTS WITH INSURANCE COMPANIES WITHIN THE UCAR STABLE
VALUE FUND
The following is a summary of investments in contracts with insurance
companies at contract value within the UCAR Stable Value Fund at December
31, 1998 and 1997. Contract value represents original deposits under the
contract credited with actual earnings and charged for expenses and
withdrawals. Contract value approximates fair value.
1998 1997
---- ----
Metropolitan Life Insurance Company:
Contract No. 13919, 7.84%, due 3/31/01....... $ 2,110,650 $ 2,327,756
Transamerica Life Insurance:
Contract No. GIC, 6.23%, due 10/01/01........ 3,786,127 4,246,761
Life of Virginia:
Contract No. 2832, 8.14%, due 10/02/00....... 1,432,363 2,369,006
The Protective Life Insurance Company:
Contract No. 1, 6.05%, due 9/30/99........... 498,836 1,119,550
Contract No. 916, 5.39%, due 3/31/00......... 845,602 1,429,378
New York Life Insurance Company:
Contract No. 06740, 5.70%, due 3/31/99....... 1,259,724 2,819,609
Allstate Life Insurance Company:
Contract No. 5618, 7.22%, due 10/01/01....... 3,296,804 3,671,148
Principal Mutual:
Contract No. 10081, 5.20%, due 10/02/00...... 2,371,794 4,029,496
CNA:
Contract No. 12972, 7.12%, due 9/29/00....... 2,119,627 3,529,709
Combined Insurance Company of America:
Contract No. 1061, 6.45%, due 3/31/02........ 2,642,517 2,959,570
People Security Life:
Contract No. 00614FR, 6.83%, due 10/01/01.... 1,950,265 2,176,008
Contract No. 00625FR, 6.94%, due 10/01/01.... 1,955,643 2,179,376
Sunamerica Life Insurance Co.:
Contract No. 4677, 6.56%, due 3/31/02........ 2,559,343 2,863,710
Contract No. 4714, 7.12%, due 9/30/02........ 1,931,749 2,148,537
John Hancock:
Contract No. 8910, 6.95%, due 09/30/02....... 3,919,728 4,367,291
----------- -----------
Total contracts with insurance companies....... $32,680,772 $42,236,905
=========== ===========
The crediting interest rates, shown above, are determined at the inception
of the contracts. The average yield for contracts with investment companies
was 6.7% and 6.6% for the years ended December 31, 1998 and 1997,
respectively.
At December 31, 1998 and 1997, the remainder of the UCAR Stable Value Fund
is invested in the Vanguard Retirement Savings Trust which is a collective,
commingled trust. The Plan owns 14,780,901 and 6,509,670 shares in the
Trust at December 31, 1998 and 1997, respectively. As the above contracts
with insurance companies expire and new monies are received, the funds will
be invested in this Trust.
10
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
(8) CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND
The allocation of changes in net assets available for plan benefits for the year
ended December 31, 1998 is as follows:
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
- ------------------------------------------------------------------------------------------------------------------------------------
Vanguard Vanguard
Vanguard Vanguard LifeStrategy Vanguard LifeStrategy Vanguard Vanguard Vanguard
Windsor II 500 Index Conservative PRIMECAP Moderate LifeStrategy International LifeStrategy
Fund Fund Growth Fund Fund Growth Fund Growth Fund Growth Fund Income Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Contributions:
Employer $ 416,815 $ 242,044 $ 96,550 $ 72,930 $ 47,284 $ 41,047 $ 17,445 $ 9,613
Participant 1,243,606 779,092 285,261 254,329 145,557 120,242 55,091 27,033
Participant loan
repayments - 67 - - - - - -
------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
1,660,421 1,021,203 381,811 327,259 192,841 161,289 72,536 36,646
------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
Investment income:
Interest and dividend
income, investments 2,137,311 250,187 266,107 106,763 103,462 45,490 20,194 53,517
Interest income,
participant loans - - - - - - - -
Net realized gain (loss)
on sale of investments 335,749 323,082 84,857 (22,869) 5,052 (1,097) (5,314) 2,383
Net unrealized apprec.
(deprec.) of investments 608,685 2,954,545 353,540 274,180 150,478 93,491 27,189 22,748
------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
3,081,745 3,527,814 704,504 358,074 258,992 137,884 42,069 78,648
------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
Asset transfers in - - - - - - - -
------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
Total additions 4,742,166 4,549,017 1,086,315 685,333 451,833 299,173 114,605 115,294
------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
DEDUCTIONS:
Payment of benefits 528,233 436,991 156,173 35,182 19,653 8,844 2,316 2,791
Participant loan
withdrawals 154,074 61,045 85,552 3,386 20,760 35,914 - 29
Other deductions - - - - - - - -
------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
Total deductions 682,307 498,036 241,725 38,568 40,413 44,758 2,316 2,820
------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease)
prior to interfund
transfers 4,059,859 4,050,981 844,590 646,765 411,420 254,415 112,289 112,474
Interfund transfers (4,023,849) 147,918 (294,251) 2,299,013 2,029,398 1,074,275 961,064 945,251
------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) 36,010 4,198,899 550,339 2,945,778 2,440,818 1,328,690 1,073,353 1,057,725
Net assets available for
plan benefits:
Beginning of period 21,175,061 12,004,011 4,400,488 - - - - -
------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
End of period $ 21,211,071 $ 16,202,910 $ 4,950,827 $ 2,945,778 $ 2,440,818 $ 1,328,690 $ 1,073,353 $ 1,057,725
============ ============ =========== =========== =========== =========== =========== ===========
<CAPTION>
PARTICIPANT DIRECTED
- ------------------------------------------------------------------------------------------------------------------------------------
UAM ICM Union
Small UCAR UCAR Carbide Praxair
Company Common Discounted Common Common Participant UCAR Stable
Portfolio Stock Fund Stock Fund Stock Fund Stock Fund Loans Value Fund Total
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Contributions:
Employer $ 22,770 $ 31,006 $ 289,078 $ - $ - $ - $ 843,166 $ 2,129,748
Participant 107,166 88,559 566,853 - - - 2,477,749 6,150,538
Participant loan
repayments - - - - - (2,151,092) 2,151,025 -
------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
129,936 119,565 855,931 - - (2,151,092) 5,471,940 8,280,286
------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
Investment income:
Interest and dividend
income, investments 76,350 - - - - - 115,077 3,174,458
Interest income,
participant loans - - - - - 307,925 - 307,925
Net realized gain (loss)
on sale of investments (30,707) (975,934) (75,046) 48,499 19,623 - 335,654 43,932
Net unrealized apprec.
(deprec.) of investments (118,621) (4,518,610) (937,428) (40,188) (793,261) - 2,417,308 494,056
------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
(72,978) (5,494,544) (1,012,474) 8,311 (773,638) 307,925 2,868,039 4,020,371
------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
Asset transfers in - - - - - 5,352 - 5,352
------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
Total additions 56,958 (5,374,979) (156,543) 8,311 (773,638) (1,837,815) 8,339,979 12,306,009
------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
DEDUCTIONS:
Payment of benefits 4,176 255,983 12,418 257,794 246,837 156,961 4,172,026 6,296,378
Participant loan
withdrawals 224 20,046 - - - (1,219,900) 838,870 -
Other deductions - - - - - 2,083 - 2,083
------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
Total deductions 4,400 276,029 12,418 257,794 246,837 (1,060,856) 5,010,896 6,298,461
------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease)
prior to interfund
transfers 52,558 (5,651,008) (168,961) (249,483) (1,020,475) (776,959) 3,329,083 6,007,548
Interfund transfers 1,028,742 1,373,604 (247,204) (248,311) (276,547) - (4,769,103) -
------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) 1,081,300 (4,277,404) (416,165) (497,794) (1,297,022) (776,959) (1,440,020) 6,007,548
Net assets available for
plan benefits:
Beginning of period - 10,696,776 1,572,372 3,701,114 4,118,112 4,149,523 48,795,492 110,612,949
------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
End of period $ 1,081,300 $ 6,419,372 $ 1,156,207 $ 3,203,320 $ 2,821,090 $ 3,372,564 $47,355,472 $116,620,497
------------ ------------ ----------- ----------- ----------- ----------- ----------- -----------
</TABLE>
11
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
(9) NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
<TABLE>
<CAPTION>
Vanguard Vanguard
Vanguard Vanguard LifeStrategy Vanguard LifeStrategy Vanguard Vanguard Vanguard
Windsor II 500 Index Conservative PRIMECAP Moderate LifeStrategy International LifeStrategy
December 31, 1998 Fund Fund Growth Fund Fund Growth Fund Growth Fund Growth Fund Income Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments:
At fair value:
Vanguard Windsor II Fund $21,211,071 $ - $ - $ - $ - $ - $ - $ -
Vanguard 500 Index Fund - 16,202,910 - - - - - -
Vanguard Retirement Savings
Trust - - - - - - - -
Vanguard Lifestrategy
Conservative Growth Fund - - 4,950,827 - - - - -
Vanguard PRIMECAP Fund - - - 2,945,778 - - - -
Vanguard LifeStrategy
Moderate Growth Fund - - - - 2,440,818 - - -
Vanguard LifeStrategy
Growth Fund - - - - - 1,328,690 - -
Vanguard International
Growth Fund - - - - - - 1,073,353 -
Vanguard LifeStrategy
Income Fund - - - - - - - 1,057,725
UAM ICM Small Company
Portfolio - - - - - - - -
UCAR International Inc.
Common Stock - - - - - - - -
Union Carbide Corp.
Common Stock - - - - - - - -
Praxair Inc. Common Stock - - - - - - - -
At contract value:
Contracts with insurance
companies - - -
----------- ----------- ---------- ---------- ---------- ---------- ---------- ----------
Total Investments 21,211,071 16,202,910 4,950,827 2,945,778 2,440,818 1,328,690 1,073,353 1,057,725
Investment income receivable - - - - - - - -
Participant loans receivable - - - - - - - -
Cash and cash equivalents - - - - - - - -
----------- ----------- ---------- ---------- ---------- ---------- ---------- ----------
Total assets 21,211,071 16,202,910 4,950,827 2,945,778 2,440,818 1,328,690 1,073,353 1,057,725
Net assets available
for plan benefits 21,211,071 16,202,910 4,950,827 2,945,778 2,440,818 1,328,690 1,073,353 1,057,725
=========== =========== ========== ========== ========== ========== ========== ==========
<CAPTION>
UAM ICM Union
Small UCAR UCAR Carbide Praxair Total
Company Common Discounted Common Common Participant UCAR Stable Savings
December 31, 1998 Portfolio Stock Fund Stock Fund Stock Fund Stock Fund Loans Value Fund Plan
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments:
At fair value:
Vanguard Windsor II Fund $ - $ - $ - $ - $ - $ - $ - $ 21,211,071
Vanguard 500 Index Fund - - - - - - - 16,202,910
Vanguard Retirement Savings
Trust - - - - - - 14,674,700 14,674,700
Vanguard Lifestrategy
Conservative Growth Fund - - - - - - - 4,950,827
Vanguard PRIMECAP Fund - - - - - - - 2,945,778
Vanguard LifeStrategy
Moderate Growth Fund - - - - - - - 2,440,818
Vanguard LifeStrategy
Growth Fund - - - - - - - 1,328,690
Vanguard International
Growth Fund - - - - - - - 1,073,353
Vanguard LifeStrategy
Income Fund - - - - - - - 1,057,725
UAM ICM Small Company
Portfolio 1,081,300 - - - - - - 1,081,300
UCAR International Inc.
Common Stock - 6,419,372 1,156,207 - - - - 7,575,579
Union Carbide Corp.
Common Stock - - - 3,203,320 - - - 3,203,320
Praxair Inc. Common Stock - - - - 2,821,090 - - 2,821,090
At contract value:
Contracts with insurance
companies - - - - - - 32,680,772 32,680,772
---------- ---------- ---------- ---------- ---------- ---------- ----------- ------------
Total Investments 1,081,300 6,419,372 1,156,207 3,203,320 2,821,090 - 47,355,472 113,247,933
Investment income receivable - - - - - - - -
Participant loans receivable - - - - - 3,372,564 - 3,372,564
Cash and cash equivalents - - - - - - - -
---------- ---------- ---------- ---------- ---------- ---------- ----------- ------------
Total assets 1,081,300 6,419,372 1,156,207 3,203,320 2,821,090 3,372,564 47,355,472 116,620,497
Net assets available
for plan benefits $1,081,300 $6,419,372 $1,156,207 $3,203,320 $2,821,090 $3,372,564 $47,355,472 $116,620,497
========== ========== ========== ========== ========== ========== =========== ============
</TABLE>
12
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
(9) NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
<TABLE>
<CAPTION>
Vanguard
Vanguard Vanguard LifeStrategy UCAR UCAR
Windsor II 500 Index Conservative Common Discounted
December 31, 1997 Fund Fund Growth Fund Stock Fund Stock Fund
----------- ----------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments:
At fair value:
Vanguard Windsor II Fund $21,175,061 $ - $ - $ - $ -
Vanguard 500 Index Fund - 12,004,011 - - -
Vanguard Retirement Savings Trust - - - - -
Vanguard Lifestrategy Conservative Growth Fund - - 4,400,488 - -
UCAR International Inc. Common Stock - - - 10,469,096 1,507,521
Union Carbide Corp. Common Stock - - - - -
Praxair Inc. Common Stock - - - - -
At contract value:
Contracts with insurance companies - - - - -
----------- ----------- ---------- ----------- ----------
Total Investments 21,175,061 12,004,011 4,400,488 10,469,096 1,507,521
Investment income receivable - - - - -
Participant loans receivable - - - - -
Cash and cash equivalents - - - 227,680 64,851
----------- ----------- ---------- ----------- ----------
Total assets 21,175,061 12,004,011 4,400,488 10,696,776 1,572,372
Net assets available for plan benefits $21,175,061 $12,004,011 $4,400,488 $10,696,776 $1,572,372
=========== =========== ========== =========== ==========
<CAPTION>
Union
Carbide Praxair Total
Common Common Participant UCAR Stable Savings
December 31, 1997 Stock Fund Stock Fund Loans Value Fund Plan
---------- ---------- ---------- ----------- ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments:
At fair value:
Vanguard Windsor II Fund $ - $ - $ - $ - $ 21,175,061
Vanguard 500 Index Fund - - - - 12,004,011
Vanguard Retirement Savings Trust - - - 6,509,670 6,509,670
Vanguard Lifestrategy Conservative Growth Fund - - - - 4,400,488
UCAR International Inc. Common Stock - - - - 11,976,617
Union Carbide Corp. Common Stock 3,701,114 - - - 3,701,114
Praxair Inc. Common Stock - 4,118,112 - - 4,118,112
At contract value:
Contracts with insurance companies - - - 42,236,905 42,236,905
---------- ---------- ---------- ----------- ------------
Total Investments 3,701,114 4,118,112 - 48,746,575 106,121,978
Investment income receivable - - 48,917 48,917
Participant loans receivable - - 4,149,523 - 4,149,523
Cash and cash equivalents - - - - 292,531
---------- ---------- ---------- ----------- ------------
Total assets 3,701,114 4,118,112 4,149,523 48,795,492 110,612,949
Net assets available for plan benefits $3,701,114 $4,118,112 $4,149,523 $48,795,492 $110,612,949
========== ========== ========== =========== ============
</TABLE>
13
<PAGE>
SCHEDULE I
UCAR CARBON SAVINGS PLAN
LINE 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1998
<TABLE>
<CAPTION>
MARKET
DESCRIPTION COST VALUE
--------------------------------------------------- ------------ ------------
<S> <C> <C>
* Vanguard Windsor II Fund, 710,589 shares........... $20,602,386 $ 21,211,071
* Vanguard 500 Index Fund, 142,193 shares............ 13,248,368 16,202,910
* Vanguard LifeStrategy Conservative Growth Fund,
336,562 shares.................................. 4,597,288 4,950,827
* Vanguard PRIMECAP Fund, 61,808 shares.............. 2,671,598 2,945,778
* Vanguard LifeStrategy Moderate Growth Fund,
144,770 shares.................................. 2,290,340 2,440,818
* Vanguard LifeStrategy Growth Fund, 70,713 shares... 1,235,199 1,328,690
* Vanguard International Growth Fund, 57,184 shares.. 1,046,164 1,073,353
* Vanguard LifeStrategy Income Fund, 80,009 shares... 1,034,977 1,057,725
* UAM ICM Small Company Portfolio, 44,352 shares..... 1,199,920 1,081,300
* UCAR International Inc. Common Stock, 360,386
shares, par value $.01.......................... 9,202,837 6,419,372
* UCAR International Inc. Discounted Common Stock,
64,909 shares, par value $.01................... 2,082,376 1,156,207
* Union Carbide Corp. Common Stock, 75,372 shares,
par value $1.................................... 650,262 3,203,320
* Praxair Inc. Common Stock, 80,031 shares, par
value $.01...................................... 971,609 2,821,090
* UCAR Stable Value Fund............................. 44,938,226 47,355,472
* Participant loans.................................. 3,372,564 3,372,564
------------ ------------
Total..................................... $109,144,114 $116,620,497
============ ============
</TABLE>
* - REPRESENTS PARTY-IN-INTEREST.
14
<PAGE>
SCHEDULE II
UCAR CARBON SAVINGS PLAN
LINE 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
EXPENSE HISTORICAL CURRENT VALUE
DESCRIPTION PURCHASE SELLING LEASE INCURRED 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>
The Vanguard Group Vanguard 500 Index Fund $ 6,509,574 $ - $ - $ - $ 6,509,574 $ 6,509,574 $ -
The Vanguard Group Vanguard 500 Index Fund - 5,588,301 - - 5,265,821 5,588,301 322,480
----------- ----------- ----- ----- ----------- ----------- ---------
$ 6,509,574 $ 5,588,301 $ - $ - $11,775,395 $12,097,875 $ 322,480
The Vanguard Group Vanguard PRIMECAP Fund $ 4,317,222 $ - $ - $ - $ 4,317,222 $ 4,317,222 $ -
The Vanguard Group Vanguard PRIMECAP Fund - 1,622,755 - - 1,645,624 1,622,755 (22,869)
----------- ----------- ----- ----- ----------- ----------- ---------
$ 4,317,222 $ 1,622,755 $ - $ - $ 5,962,846 $ 5,939,977 $ (22,869)
The Vanguard Group Vanguard Windsor II Fund $ 7,018,586 $ - $ - $ - $ 7,018,586 $ 7,018,586 $ -
The Vanguard Group Vanguard Windsor II Fund - 7,927,010 - - 7,591,877 7,927,010 335,133
----------- ----------- ----- ----- ----------- ----------- ---------
$ 7,018,586 $ 7,927,010 $ - $ - $14,610,463 $14,945,596 $ 335,133
The Vanguard Group UCAR Stable Value Fund $16,961,655 $ - $ - $ - $16,961,655 $16,961,655 $ -
The Vanguard Group UCAR Stable Value Fund - 21,154,640 - - 20,822,869 21,154,640 331,771
----------- ----------- ----- ----- ----------- ----------- ---------
$16,961,655 $21,154,640 $ - $ - $37,784,524 $38,116,295 $ 331,771
N/A UCAR Common Stock Fund $ 6,603,055 $ - $ - $ - $ 6,603,055 $ 6,603,055 $ -
N/A UCAR Common Stock Fund - 5,385,914 - - 6,140,745 5,385,914 (754,831)
----------- ----------- ----- ----- ----------- ----------- ---------
$ 6,603,055 $ 5,385,914 $ - $ - $12,743,800 $11,988,969 $(754,831)
</TABLE>
15
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Plan Administrator 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 (the "Plan") as of December 31, 1998
and 1997, and the related statement of changes in net assets available for plan
benefits for the year ended December 31, 1998. 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, 1998 and 1997, and the changes in net assets available for plan
benefits for the year ended December 31, 1998, 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 and II 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. These supplemental
schedules are the responsibility of the Plan's management. 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.
KPMG LLP
Nashville, Tennessee
June 18, 1999
16
<PAGE>
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 28, 1999 By: /S/ Corrado DeGasperis
---------------------------
Corrado DeGasperis
Controller
Member of the Savings Plan
Administrative Committee
17
<PAGE>
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 18,
1999, relating to the statements of net assets avaliable for plan benefits of
the UCAR Carbon Savings Plan as of December 31, 1998 and 1997, and the related
statements of changes in net assets avaliable for plan benefits for the year
ended December 31, 1998, and all related schedules, which report appears on page
16 of this Annual Report on Form 11-K for the year ended December 31, 1998.
/s/ KPMG LLP
KPMG LLP
Nashville, Tennessee
June 18, 1999
