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, 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 0-7469
A. Full title of the plan and the address of the plan, if
different from that of the issuer named below:
TJ INTERNATIONAL, INC.
INVESTMENT PLAN
B. Name of issuer of the securities held pursuant to the
plan and the address of its principal executive office:
TJ INTERNATIONAL, INC.
200 E. Mallard Drive
P.O. Box 65
Boise, ID 83707
<PAGE>
SIGNATURES
Pursuant to the requirements 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.
TJ International, Inc.
Investment Plan
---------------------------------
(Name of Plan)
Date: June 18, 1999 /s/ Valerie A. Heusinkveld
---------------------------------
(Signature)
Valerie A. Heusinkveld
Committee Member
TJ International, Inc. Investment
Plan Administrative Committee
<PAGE>
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the
incorporation of our report dated May 24, 1999, included in this
Form 11-K for the year ended December 31, 1998, into the
Company's previously filed Registration Statement on Form S-8
(33-21870).
/s/ ARTHUR ANDERSEN LLP
Boise, Idaho
June 18, 1999
<PAGE>
TJ INTERNATIONAL, INC.
INVESTMENT PLAN
FINANCIAL STATEMENTS
AS OF DECEMBER 31, 1998 AND 1997
TOGETHER WITH AUDITORS' REPORT
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Administrative Committee of the
TJ International, Inc. Investment Plan:
We have audited the accompanying statements of net assets
available for plan benefits by fund of the TJ International, Inc.
Investment Plan (the Plan) as of December 31, 1998 and 1997, and
the related statements of changes in net assets available for
plan benefits by fund for the years then ended. These financial
statements and the schedules referred to below are the
responsibility of the Plan's management. Our responsibility is
to express an opinion on these financial statements and schedules
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 by fund of the Plan as of December
31, 1998 and 1997, and the changes in net assets available for
plan benefits by fund for the years then ended in conformity with
generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion
on the basic financial statements taken as a whole. The
Supplemental Schedules of assets held for investment purposes and
reportable transactions are presented for purposes of additional
analysis and are not a required part of the basic financial
statements but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of
1974. The Fund Information in the statements of net assets
available for benefits by fund and the statements of changes in
net assets available for benefits by fund 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 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.
Boise, Idaho
May 24, 1999
<PAGE>
RESERVED FOR SUPPLEMENTAL SCHEDULE 1
TJ INTERNATIONAL, INC.
EIN: 82-0250992
INVESTMENT PLAN
PLAN NUMBER 002
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997
<PAGE>
RESERVED FOR SUPPLEMENTAL SCHEDULE 2
TJ INTERNATIONAL, INC.
EIN: 82-0250992
INVESTMENT PLAN
PLAN NUMBER 002
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN
BENEFITS BY FUND
FOR THE YEAR ENDED DECEMBER 31, 1998
<PAGE>
RESERVED FOR SUPPLEMENTAL SCHEDULE 3
TJ INTERNATIONAL, INC.
EIN: 82-0250992
INVESTMENT PLAN
PLAN NUMBER 002
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN
BENEFITS BY FUND
FOR THE YEAR ENDED DECEMBER 31, 1997
<PAGE>
TJ INTERNATIONAL, INC.
INVESTMENT PLAN
NOTES TO THE FINANCIAL STATEMENTS
1. PLAN DESCRIPTION:
-----------------
The following description of the TJ International, Inc. (the
"Company") Investment Plan (the "Plan") provides only general
information. Participants should refer to the Plan document for
a more complete description of the Plan's provisions.
General
- -------
The Plan is a defined contribution plan sponsored by the Company.
The Plan is administered by an Administrative Committee (the
"Committee") appointed by the Company's Board of Directors.
The Plan obtained its latest determination letter on June 13,
1997, in which the Internal Revenue Service (IRS) stated that the
Plan, as then designed, was in compliance with the applicable
requirements of the Internal Revenue Code. The Company believes
the Plan is designed and currently operates in accordance with
the Internal Revenue Code.
Participant Accounts
- --------------------
Substantially all eligible associates are participants in the
Plan. The following accounts are maintained by fund for each
participant:
* An elective contribution account consisting of participant
contributions in selected amounts up to 15% of participant's
eligible compensation, limited to a maximum contribution as
set by the IRS.
* A Company matching contribution account consisting of the
Company matching contribution equal to 100% of the first 2%
of a participant's contributed eligible compensation and 50%
of the next 4% of a participant's contributed eligible
compensation. The Company's maximum matching contribution
is 4% of a participant's eligible compensation.
* Three profit sharing contribution accounts consisting of a
general profit sharing account, an ESOP Common Stock account
and an ESOP Preferred Stock account. The annual Company
profit sharing contribution is determined by a formula based
on the Company's net income. The Company's Board of
Directors has discretionary powers to invest this
contribution in one or any combination of these profit
sharing accounts. A profit sharing contribution to the ESOP
Preferred Stock account results in interest and principal
payments on the leveraged ESOP loan releasing preferred
shares to be allocated to participant accounts. These
contributions, as well as any forfeitures, are allocated
using a formula based on participants' eligible
compensation.
* An elective contribution account consisting of participants'
employee after-tax contributions made to the Plan prior to
1973.
* A rollover contribution account consisting of a
participant's distributions from a qualified employer plan.
<PAGE>
Contributions
- -------------
Employee contributions and the related Company matching
contributions are credited to the participants' accounts as
payrolls are processed throughout the year. The Company's profit
sharing and forfeiture reallocation contributions are credited to
the participants' accounts annually. The Company matching,
profit sharing and forfeiture reallocation are subject to vesting
provisions of the Plan as described in Note 5. The Company has
the discretion regarding the use of forfeitures inasmuch as the
Company can reduce Plan expenses, reduce future employer
contributions or reallocate the amount to the remaining
participants using a formula based on participants' eligible
compensation. Participants are 100% vested in their elective
contribution, pre-1973 after-tax contribution and rollover
contribution account balances.
Participants in the Plan may make elective contributions to any
of the participant directed investment options. Effective April
1, 1996, the Company's matching contributions began being
invested in the TJ Common Stock Fund.
The Company's Board of Directors, as allowed by the Plan,
directed the annual profit sharing contributions as follows:
* The Company made general profit sharing contributions of
$4,054,100 and $3,246,500 for 1998 and 1997, respectively.
This general profit sharing contribution is invested based
on the participant's elective contribution.
* The Company did not make an ESOP Common Stock profit sharing
contribution for 1998 and 1997.
* The Company made ESOP Preferred Stock profit sharing
contributions, based on principal loan payments, of $614,510
and $1,000,000 for 1998 and 1997, respectively. The
principal payments include additional amounts resulting in
the excess of preferred dividends over interest expense.
As of December 31, 1998 and 1997, the Plan consisted of
approximately 3,206 and 2,801 participants, respectively, some of
whom have elected to invest in more than one fund. The
approximate number of participants investing in each fund was:
December 31,
--------------
1998 1997
---- ----
Managed Income Fund 1,505 1,429
Puritan Fund 1,852 1,648
Spartan U.S. Equity Index Fund 1,386 1,021
Value Fund 1,696 1,584
Magellan Fund 1,648 1,263
TJ Common Stock Fund 2,968 2,601
ESOP Common Stock Fund 2,579 2,246
ESOP Preferred Stock Fund 2,547 2,220
Benefit Payments
- ----------------
On termination of employment for account balances equal to $5,000
or more, a participant may elect to receive an amount equal to
the value of the participant's vested interest in his or her
account balance in either a joint and survivor annuity, a
lump-sum payment or in annual installments over a maximum
ten-year period.
On termination of employment for account balances less than
$5,000, a participant will receive a lump-sum payment equal to
the value of the participant's vested interest in his or her
account balance.
<PAGE>
Participant Loans
- -----------------
Participants may borrow from their participant directed fund
accounts a minimum of $2,000 up to a maximum equal to the lesser
of $50,000 or 50% of their account balance, excluding Company
contributions. A participant's outstanding loan balance is
reported in the Participant Loans fund on the statements of net
assets available for plan benefits by fund. Loan terms range
from 1-5 years and bear interest at a rate equal to prime plus
one percent updated monthly. The loans are secured by the
balance in the participant's accounts. Interest rates range from
9% to 10%. Principal and interest is paid ratably through
bi-weekly payroll deductions.
Trustee and Investment Manager
- ------------------------------
The assets of the Plan are held in trust (the "Trust") by
Fidelity Management Trust Company (the "Trustee"). Fidelity also
provides investment management, asset custodianship and
recordkeeping services.
Investment of earnings or losses are allocated to each
participant based on account balances at the end of each business
day. The participant account balances in each fund are
determined based on the applicable closing prices adjusted for
any increase or decrease for interest, dividends and expenses
related to management of the funds.
The Plan's investment manager has discretionary authority to
invest the assets of the Plan consistent with the fund's
investment objectives. The investment manager's performance is
periodically reviewed and evaluated by the Committee.
Administrative Expenses
- -----------------------
The Plan provides that operating and administrative expenses,
investment asset management fees, brokerage commissions, trust
services and related expenses are payable from the assets of the
Plan unless stated otherwise. In addition, each participant is
charged an annual account fee determined by the Committee.
2. SIGNIFICANT ACCOUNTING POLICIES:
--------------------------------
Basis of Accounting
- -------------------
The financial statements of the Plan are prepared under the
accrual method of accounting.
Use of Estimates
- ----------------
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
Profit sharing contributions from the Company are recorded in
conformity with the Company's funding policy and were received
subsequent to year-end.
Investment Valuation and Income Recognition
- -------------------------------------------
Assets of the Plan are valued at fair value, except for the
individual insurance contracts within the Managed Income Fund,
which are valued at contract value at December 31, 1998 and 1997,
respectively. Market value fluctuations in the Managed Income
Fund reflect changes in the effective yield on the underlying
securities and have been included in interest income. The
investment funds are valued net of management fees. Net
appreciation (depreciation) in fair value of assets includes both
realized and unrealized gains and losses of the assets during the
Plan years.
The accrual basis of accounting requires that purchases and sales
of securities be recorded on a trade date basis. Accordingly,
dividends are accrued when declared, and allocated in conformity
with the Plan. Benefits are recorded when paid.
3. INVESTMENTS:
------------
<PAGE>
The following is a brief description of the investment funds:
* Managed Income Fund is a stable value fund. The assets are
invested in Fidelity's Managed Income Portfolio and in
individual insurance contracts that were purchased for the
Fund in previous years. All investment contracts and fixed
income securities must meet the high credit quality
standards of the portfolio's manager. Although the
individual investment contracts are backed by the issuer,
units of this investment are not backed by the Trustee, the
Plan sponsor or insured by the FDIC. The Fund's goal is to
maintain a stable $1 unit price, but there is no guarantee
that it will do so. The yield will fluctuate. This Fund is
not a mutual fund and is managed by the Trustee.
At December 31, 1998 and 1997, the Managed Income Fund
invested in insurance contracts with stated interest rates
ranging from 7.00% to 7.92%. The effective yields during
these periods were 6.11% and 6.23% for 1998 and 1997,
respectively. At December 31, 1998 and 1997, the fair value
of the individual insurance contracts which are presented at
contract value was $1,826,460 and $2,669,969, respectively.
* Puritan Fund is a growth and income fund. It seeks as much
income as possible, consistent with preservation of capital,
by investing in a broadly diversified portfolio of domestic
and foreign common stocks, preferred stocks and bonds,
including lower-quality, high-yield debt securities.
Dividend amounts will vary. The Fund's share price and
return will fluctuate.
* Spartan U.S. Equity Index Fund is a growth and income fund.
It seeks investment results that try to duplicate the
composition and total return of the S&P 500, which is
comprised of common stocks. Dividend amounts will vary.
The Fund's share price and return will fluctuate.
* Value Fund is a growth fund. It seeks long-term capital
appreciation by investing in the securities of companies
with valuable fixed assets, or in the securities of
companies that its investment adviser believes are
undervalued in relation to the Company's assets, earnings or
growth potential. The Fund's share price and return will
fluctuate.
* Magellan Fund is a growth fund. It seeks long-term capital
appreciation by investing in the stocks of both well-known
and lesser-known companies with potentially above-average
growth potential and a correspondingly higher level of risk.
Securities may be of foreign, domestic, and multinational
companies. The Fund's share price and return will
fluctuate.
* TJ Common Stock Fund invests primarily in TJ International,
Inc. Common Stock and in a small amount of short-term
investments that allows the Fund to handle exchanges,
withdrawals and distributions. Investment in the Fund
allows eligible associates to become stockholders and
part owners of the Company and allow eligible Associates to
participate in the Company's financial future. The Fund is
not a mutual fund and is an unmanaged, non-diversified
investment.
* ESOP Common and Preferred Stock Funds invest primarily in TJ
International, Inc. common and preferred stock and a small
amount in short term investments that allows the Fund to
handle exchanges, withdrawals and distributions. The
Company has discretionary powers to invest the annual profit
sharing, forfeiture reallocation and debt service on the
ESOP loan to buy shares of common stock and/or release
shares of preferred stock for allocation to participants
based on eligible compensation. Investment in these funds
allow eligible associates to become stockholders and part
owners of the Company and allow eligible associates to
participate in the Company's financial future. These funds
are not mutual funds and are unmanaged, non-diversified
investments.
4. CONVERTIBLE PREFERRED STOCK AND ESOP LOAN:
------------------------------------------
On September 21, 1990, the former TJ International, Inc. Employee
Stock Ownership Plan (the "ESOP") acquired 1,269,842 shares of
Preferred Stock for $15,000,009, or $11.8125 per share, using the
proceeds of the ESOP loan made to the Trustee by the Company.
<PAGE>
Preferred Stock is convertible into Company common stock or cash,
at the Company's option, at a redemption ratio or value equal to
one share of common stock for each share of Preferred Stock.
However, the Preferred Stock cannot be redeemed for a value less
than the liquidation preference of $11.8125 per share. The
Preferred Stock pays an annual dividend of $1.063125 per share.
The Preferred Stock is redeemable at the Company's option after
December 31, 2000, and under certain circumstances prior to that
date. The Preferred Stock is held solely by the Trustee for the
Plan and is not available for trading outside the Plan. Upon
redemption by the Company, the shares of Preferred Stock are
permanently retired.
The Preferred Stock is held in a separate "ESOP Suspense Account"
pending release to participants and is pledged as collateral for
the ESOP loan. The number of shares allocated to Plan
participants for a Plan year is determined by a formula that
divides principal and interest to be paid for the current Plan
year by the sum of the remaining total principal and interest
payments due, including amounts due in the current year, and
multiplied by the shares in the suspense account. Shares are
released from the ESOP Suspense Account as principal and interest
is paid. Below is the detail of the allocation of share balances
in the ESOP Preferred Stock Fund as of December 31, 1998 and
1997, respectively:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Historical Fair
1998 Shares Cost Market Value
- ---- ------ ---- ------------
Unallocated 610,284 $ 7,208,980 $15,135,043
Allocated 514,564 6,078,287 12,761,187
Retired 144,994 1,712,742 3,595,851
--------- ----------- -----------
Total 1,269,842 $15,000,009 $31,492,081
========= =========== ===========
Historical Fair
1997 Shares Cost Market Value
- ---- ------ ---- ------------
Unallocated 689,760 $ 8,147,790 $16,666,326
Allocated 457,459 5,403,734 11,053,353
Retired 122,623 1,448,485 2,962,878
--------- ----------- -----------
Total 1,269,842 $15,000,009 $30,682,557
========= =========== ===========
</TABLE>
The ESOP loan represents an unconditional promise from the Plan
to the Company to repay $15,000,009 plus interest. The ESOP loan
is to be repaid by the Trustee from a combination of cash
contributions from the Company and dividends from Preferred Stock
held by the Plan. The ESOP loan is guaranteed by the Company and
accrues interest at a 9% rate per annum on the outstanding
principal amount without compounding. The interest is payable on
December 31 of each year. The ESOP loan requires no principal
payment until the maturity date of the loan, March 31, 2011, and
imposes no penalty for prepayment of the principal prior to the
maturity date. For 1998 and 1997, principal payments of
$1,357,850 and $1,341,709 were paid on the ESOP loan.
<PAGE>
5. VESTING:
--------
Upon termination of employment, participants are entitled to
receive elective contributions, pre-1973 after tax contributions,
rollover contributions and any vested portion of the Company's
contributions. Participants become vested as follows:
Completed Years 7 or 2 or
of Vesting Service More 6 5 4 3 less
- ------------------ -----------------------------------
Vested Percentage 100% 80% 60% 40% 20% 0%
In the event employment terminates prior to the completion of
seven years of vested service for any reason other than
retirement, death or disability, a participant forfeits the
non-vested portion in his or her account balance. The Plan's
break in service provisions provide that the forfeiture of
non-vested participant's account balance and credited years of
service will occur in the year that Plan participation ceases.
Total forfeitures were immaterial in 1998 and 1997.
In the event of a Plan termination, the accounts of all
participants affected by such termination shall become fully
vested and thereafter not subject to forfeiture.
6. ESOP DIVERSIFICATION:
---------------------
In compliance with the Tax Reform Act of 1986, the Company's ESOP
participants age 55 or older and with at least ten years of ESOP
participation have the opportunity to diversify their investment
from ESOP stock funds to any of the six participant directed
investment options. Eligible ESOP participants may elect to
transfer all or a portion of their account balance. Eligible
participants elected to irrevocably transfer their account
balances totaling $572,595 and $625,894 in 1998 and 1997,
respectively, from the ESOP funds to the participant directed
investment options.
7. RELATED PARTY TRANSACTIONS:
---------------------------
Fidelity acts as the Trustee and Investment Manager as defined in
Note 1. Transactions conducted by Fidelity include detailed
maintenance of individual participants' accounts. This
maintenance involves allocation of contributions and earnings,
computation and payment of withdrawals, and reporting of account
activity to participants and to the Company. These transactions
qualify as party-in-interest transactions.
Participants elected to contribute to the TJ Common Stock Fund.
Employer discretionary contributions to the Plan were made in TJ
International preferred stock (ESOP Preferred Stock Fund). These
transactions qualify as party-in-interest transactions.
8. SUBSEQUENT EVENTS:
------------------
Effective January 1, 1999, the Plan was amended to change the
vesting schedule in Company contributions. Pursuant to the
amendment, participants will be immediately 100% vested in the
Company matching contributions. Participants will become vested
in Company profit sharing contributions, as follows:
Completed Years 5 or
Of Vesting Service More 4 3 2 1
- ------------------ ------------------------------
Vested Percentage 100% 80% 60% 40% 20%
<PAGE>
<TABLE>
<CAPTION>
TJ INTERNATIONAL, INC.
EIN: 82-0250992
INVESTMENT PLAN
PLAN NUMBER 002
ITEM 27(a) - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1998
<S> <C> <C> <C>
Contract Fair
Identity of Issue Description of InvestmentValue Value
- ------------------------------------------------------------------------------
Managed Income Fund:
Fidelity Investments*Fidelity Institutional
Money Market account $ 913,080$ 913,080
======================
New York Life Guaranteed investment contract
number GA-30214-3, 7.00% rate
of return, August 27, 1999
maturity date $ 447,587$ 446,515
Principal Mutual Guaranteed investment contract
number GA4-14925, 7.92% rate of
return, December 9, 1999
maturity date 1,379,889 1,379,945
Fidelity Investments*Fidelity Income Portfolio Fund
24,321,513 participation units,
interest rates and due dates
variable 24,321,513 24,321,513
----------- -----------
Total Managed Income Fund
investments $26,148,989$26,147,973
=========== ===========
*Known party-in-interest
The accompanying notes are an integral part of these schedules.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TJ INTERNATIONAL, INC.
EIN: 82-0250992
INVESTMENT PLAN
PLAN NUMBER 002
ITEM 27(a) - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1998
<S> <C> <C> <C>
Fair
Identity of Issue Description of InvestmentCost Value
- ------------------------------------------------------------------------------
Fidelity Investments*:Cash Equivalents $ (234,414)$ (234,414)
======================
Puritan Fund, 1,683,884
participation units $30,498,575$33,795,551
======================
Spartan U.S. Equity
Index Fund, 417,762
participation units $12,833,634$18,364,816
======================
Value Fund, 460,991
participation units $24,267,122$21,366,939
======================
Magellan Fund, 197,131
participation units $17,315,640$23,817,322
======================
TJ International,
Inc.*: TJ Common Stock Fund,
1,218,511 shares common stock$25,631,015$31,300,507
======================
ESOP - Common Stock Fund,
584,227 shares common stock$ 4,404,936$15,007,325
======================
ESOP - Preferred Stock Fund,
1,124,848 shares convertible
preferred stock $13,287,267$27,896,229
======================
Participant Loans*: Participant Loans, maturing
through 2003, 9-10% $ 2,569,953$ 2,569,953
======================
*Known party-in-interest
The accompanying notes are an integral part of these schedules.
</TABLE>
<PAGE>
RESERVED FOR SUPPLEMENTAL SCHEDULE 4
TJ INTERNATIONAL, INC.
EIN: 82-0250992
INVESTMENT PLAN
PLAN NUMBER 002
ITEM 27(d) - SCHEDULE OF TRANSACTIONS OR SERIES OF TRANSACTIONS
IN EXCESS OF 5% OF THE CURRENT VALUE OF PLAN ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1998
<PAGE>
<TABLE>
<CAPTION>
SUPPLEMENTAL SCHEDULE 1
TJ INTERNATIONAL, INC. 1 of 4
EIN: 82-0250992
INVESTMENT PLAN
PLAN NUMBER 002
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
AS OF DECEMBER 31, 1998 AND 1997
<S> <C> <C> <C>
Participant Directed
------------------------------------
Managed Spartan U.S.
Income Puritan Equity
As of December 31, 1998 Fund Fund Index Fund
- ----------------------- ------------------------------------
ASSETS
Investments, at fair value $24,321,513$33,795,551$18,364,816
Investment, at contract value 1,827,476 -- --
Cash and cash equivalents 913,080 -- --
Employer contributions receivable 608,793 871,002 589,038
Participant loans -- -- --
----------------------------------
27,670,862 34,666,553 18,953,854
----------------------------------
LIABILITIES
ESOP loan -- -- --
----------------------------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS$27,670,862$34,666,553$18,953,854
==================================
Managed Spartan U.S.
Income Puritan Equity
As of December 31, 1997 Fund Fund Index Fund
- ----------------------- ------------------------------------
ASSETS
Investments, at fair value $15,633,091$31,799,704$12,145,399
Investment, at contract value 2,730,097 -- --
Cash and cash equivalents 1,024,721 -- --
Employer contributions receivable 489,831 793,271 374,941
Participant loans -- -- --
----------------------------------
19,877,740 32,592,975 12,520,340
----------------------------------
LIABILITIES
ESOP loan -- -- --
----------------------------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS$19,877,740$32,592,975$12,520,340
==================================
<PAGE>
2 of 4
<S> <C> <C> <C>
Participant Directed
------------------------------------
Value Magellan TJ Common
As of December 31, 1998 Fund Fund Stock Fund
- ----------------------- ------------------------------------
ASSETS
Investments, at fair value $21,366,939$23,817,322$31,300,507
Investment, at contract value -- -- --
Cash and cash equivalents -- -- (471,978)
Employer contributions receivable 625,046 842,451 517,770
Participant loans -- -- --
----------------------------------
21,991,985 24,659,773 31,346,299
----------------------------------
LIABILITIES
ESOP loan -- -- --
----------------------------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS$21,991,985$24,659,773$31,346,299
==================================
Value Magellan TJ Common
As of December 31, 1997 Fund Fund Stock Fund
- ----------------------- ------------------------------------
ASSETS
Investments, at fair value $25,090,691$14,508,580$25,990,629
Investment, at contract value -- -- --
Cash and cash equivalents -- -- 85,794
Employer contributions receivable 581,043 581,405 426,010
Participant loans -- -- --
----------------------------------
25,671,734 15,089,985 26,502,433
----------------------------------
LIABILITIES
ESOP loan -- -- --
----------------------------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS$25,671,734$15,089,985$26,502,433
==================================
<PAGE>
3 of 4
<S> <C> <C>
Participant Directed
--------------------
ESOP
Participant Common
As of December 31, 1998 Loans Stock Fund
- ----------------------- ------------------------------------
ASSETS
Investments, at fair value $ -- $15,007,325
Investment, at contract value -- --
Cash and cash equivalents -- 138,634
Employer contributions receivable -- --
Participant loans 2,569,953 --
----------- ------------
2,569,953 15,145,959
----------- ------------
LIABILITIES
ESOP loan -- --
----------- ------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS$ 2,569,953 $15,145,959
=========== ============
Participant Directed
--------------------
ESOP
Participant Common
As of December 31, 1997 Loans Stock Fund
- ----------------------- ------------------------------------
ASSETS
Investments, at fair value $ -- $15,517,820
Investment, at contract value -- --
Cash and cash equivalents -- 133,975
Employer contributions receivable -- --
Participant loans 2,797,352 --
----------- ------------
2,797,352 15,651,795
----------- ------------
LIABILITIES
ESOP loan -- --
----------- ------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS$ 2,797,352 $15,651,795
=========== ============
<PAGE>
4 of 4
<S> <C> <C> <C>
Allocated Unallocated
------------------------------------
ESOP ESOP
Preferred Preferred
As of December 31, 1998 Stock FundStock FundTotal Plan
- ----------------------- ------------------------------------
ASSETS
Investments, at fair value $12,761,186$15,135,043$195,870,202
Investment, at contract value -- -- 1,827,476
Cash and cash equivalents 98,930 -- 678,666
Employer contributions receivable 614,510 -- 4,668,610
Participant loans -- -- 2,569,953
----------------------------------
13,474,626 15,135,043 205,614,907
----------------------------------
LIABILITIES
ESOP loan -- 8,978,749 8,978,749
----------------------------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS$13,474,626$ 6,156,294$196,636,158
==================================
Allocated Unallocated
------------------------------------
ESOP ESOP
Preferred Preferred
As of December 31, 1997 Stock FundStock FundTotal Plan
- ----------------------- ------------------------------------
ASSETS
Investments, at fair value $11,053,353$16,666,326$168,405,593
Investment, at contract value -- -- 2,730,097
Cash and cash equivalents 86,220 -- 1,330,710
Employer contributions receivable 1,000,000 -- 4,246,501
Participant loans -- -- 2,797,352
----------------------------------
12,139,573 16,666,326 179,510,253
----------------------------------
LIABILITIES
ESOP loan -- 10,336,598 10,336,598
----------------------------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS$12,139,573$ 6,329,728$169,173,655
==================================
The accompanying notes and Supplemental Schedules are an integral
part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SUPPLEMENTAL SCHEDULE 2
TJ INTERNATIONAL, INC. 1 of 4
EIN: 82-0250992
INVESTMENT PLAN
PLAN NUMBER 002
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
FOR THE YEAR ENDED DECEMBER 31, 1998
<S> <C> <C> <C>
Participant Directed
------------------------------------
Managed Spartan U.S.
Income Puritan Equity
For the Year Ended December 31, 1998 Fund Fund Index Fund
- ------------------------------------------------------------------------
Investment income:
Interest income $ 1,345,760$ 2,535,840$ 155,241
Dividend income -- 1,105,177 214,204
Net appreciation (depreciation) in
fair value of assets -- 1,481,077 3,495,506
Contributions:
Employee 1,162,482 1,758,139 1,258,725
Employer 608,792 871,002 589,038
Plan benefit claims distributions
during the year (1,406,812) (2,209,398) (611,456)
Interest expense on ESOP loan -- -- --
Administrative fees and other (22,051) (10,893) (4,531)
Loans initiated, net of repayments
and interest (73,534) 58,844 37,852
Transfer among funds, net 6,178,485 (3,516,210) 1,298,935
----------------------------------
Net increase (decrease) during the year 7,793,122 2,073,578 6,433,514
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
beginning of year 19,877,740 32,592,975 12,520,340
----------------------------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
end of year $27,670,862$34,666,553$18,953,854
=================================
<PAGE>
2 of 4
<S> <C> <C> <C>
Participant Directed
------------------------------------
Value Magellan TJ Common
For the Year Ended December 31, 1998 Fund Fund Stock Fund
- ------------------------------------------------------------------------
Investment income:
Interest income $ 2,875,809$ 955,519$ 286,479
Dividend income 219,324 122,212 249,081
Net appreciation (depreciation) in
fair value of assets (3,120,561) 4,409,150 925,616
Contributions:
Employee 1,589,729 1,750,061 1,134,596
Employer 625,046 842,450 4,518,548
Plan benefit claims distributions
during the year (1,576,171) (610,043) (1,059,131)
Interest expense on ESOP loan -- -- --
Administrative fees and other (2,281) (1,808) (25,118)
Loans initiated, net of repayments
and interest 53,554 (20,429) (19,112)
Transfer among funds, net (4,344,198) 2,122,676 (1,167,093)
----------------------------------
Net increase (decrease) during the year (3,679,749) 9,569,788 4,843,866
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
beginning of year 25,671,734 15,089,985 26,502,433
----------------------------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
end of year $21,991,985$24,659,773$31,346,299
=================================
<PAGE>
3 of 4
<S> <C> <C>
Participant Directed
--------------------
ESOP
Participant Common
For the Year Ended December 31, 1998 Loans Stock Fund
- ------------------------------------------------------------------------
Investment income:
Interest income $ -- $ 134,811
Dividend income -- 132,673
Net appreciation (depreciation) in
fair value of assets -- 478,397
Contributions:
Employee -- --
Employer -- --
Plan benefit claims distributions
during the year (190,224) (721,153)
Interest expense on ESOP loan -- --
Administrative fees and other -- (14,721)
Loans initiated, net of repayments
and interest (37,175) --
Transfer among funds, net -- (515,843)
----------- ------------
Net increase (decrease) during the year (227,399) (505,836)
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
beginning of year 2,797,352 15,651,795
----------- ------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
end of year $ 2,569,953 $15,145,959
=========== ============
<PAGE>
4 of 4
<S> <C> <C> <C>
Allocated Unallocated
------------------------------------
ESOP ESOP
Preferred Preferred
For the Year Ended December 31, 1998Stock FundStock FundTotal Plan
- ------------------------------------------------------------------------
Investment income:
Interest income $ --$ -- $ 8,289,459
Dividend income 462,691 745,703 3,251,065
Net appreciation (depreciation) in
fair value of assets (672,957) 1,439,743 8,435,971
Contributions:
Employee -- -- 8,653,732
Employer 614,510 -- 8,669,386
Plan benefit claims distributions
during the year (512,715) -- (8,897,103)
Interest expense on ESOP loan -- (850,544) (850,544)
Administrative fees and other (8,060) -- (89,463)
Loans initiated, net of repayments
and interest -- -- --
Transfer among funds, net 1,451,584(1,508,336) --
----------------------------------
Net increase (decrease) during the year 1,335,053 (173,434) 27,462,503
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
beginning of year 12,139,573 6,329,728169,173,655
----------------------------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
end of year $13,474,626$6,156,294 $196,636,158
================================
The accompanying notes and Supplemental Schedules are an integral
part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SUPPLEMENTAL SCHEDULE 3
TJ INTERNATIONAL, INC. 1 of 4
EIN: 82-0250992
INVESTMENT PLAN
PLAN NUMBER 002
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
FOR THE YEAR ENDED DECEMBER 31, 1997
<S> <C> <C> <C>
Participant Directed
------------------------------------
Managed Spartan U.S.
Income Puritan Equity
For the Year Ended December 31, 1997 Fund Fund Index Fund
- ------------------------------------------------------------------------
Investment income:
Interest income $ 1,168,489$ 1,580,344$ 141,258
Dividend income -- 1,057,475 135,081
Net appreciation (depreciation) in
fair value of assets -- 3,322,830 2,409,149
Contributions:
Employee 1,041,045 1,523,169 895,669
Employer 489,831 793,271 374,941
Plan benefit claims distributions
during the year (1,469,446) (1,721,488) (423,598)
Interest expense on ESOP loan -- -- --
Administrative fees and other (20,870) (8,142) (2,863)
Loans initiated, net of repayments
and interest (71,343) 33,777 44,592
Transfer among funds, net 526,255 (297,397) 1,483,495
----------------------------------
Net increase (decrease) during the year 1,663,961 6,283,839 5,057,724
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
beginning of year 18,213,779 26,309,136 7,462,616
----------------------------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
end of year $19,877,740$32,592,975$12,520,340
=================================
<PAGE>
2 of 4
<S> <C> <C> <C>
Participant Directed
------------------------------------
Value Magellan TJ Common
For the Year Ended December 31, 1997 Fund Fund Stock Fund
- ------------------------------------------------------------------------
Investment income:
Interest income $ 3,263,393$ 781,511$ 227,177
Dividend income 192,921 175,533 229,832
Net appreciation (depreciation) in
fair value of assets 822,247 1,972,196 2,210,562
Contributions:
Employee 1,465,521 1,432,823 1,119,479
Employer 581,043 581,405 4,050,262
Plan benefit claims distributions
during the year (1,297,261) (438,315) (993,104)
Interest expense on ESOP loan -- -- --
Administrative fees and other (2,210) (1,345) (30,387)
Loans initiated, net of repayments
and interest (33,591) 40,804 (171,580)
Transfer among funds, net 830,174 (279,647) (1,835,598)
----------------------------------
Net increase (decrease) during the year 5,822,237 4,264,965 4,806,643
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
beginning of year 19,849,497 10,825,020 21,695,790
----------------------------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
end of year $25,671,734$15,089,985$26,502,433
=================================
<PAGE>
3 of 4
<S> <C> <C>
Participant Directed
--------------------
ESOP
Participant Common
For the Year Ended December 31, 1997 Loans Stock Fund
- ------------------------------------------------------------------------
Investment income:
Interest income $ -- $ 107,332
Dividend income -- 141,819
Net appreciation (depreciation) in
fair value of assets -- 819,885
Contributions:
Employee -- --
Employer -- --
Plan benefit claims distributions
during the year (283,973) (556,013)
Interest expense on ESOP loan -- --
Administrative fees and other -- (20,856)
Loans initiated, net of repayments
and interest 157,341 --
Transfer among funds, net -- (440,562)
----------- ------------
Net increase (decrease) during the year (126,632) 51,605
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
beginning of year 2,923,984 15,600,190
----------- ------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
end of year $ 2,797,352 $15,651,795
=========== ===========
<PAGE>
4 of 4
<S> <C> <C> <C>
Allocated Unallocated
------------------------------------
ESOP ESOP
Preferred Preferred
For the Year Ended December 31, 1997Stock FundStock FundTotal Plan
- ------------------------------------------------------------------------
Investment income:
Interest income $ --$ -- $ 7,269,504
Dividend income 385,693 843,151 3,161,505
Net appreciation (depreciation) in
fair value of assets (415,932) 2,447,719 13,588,656
Contributions:
Employee -- -- 7,477,706
Employer 1,000,000 -- 7,870,753
Plan benefit claims distributions
during the year (347,230) -- (7,530,428)
Interest expense on ESOP loan -- (965,082) (965,082)
Administrative fees and other (9,235) -- (95,908)
Loans initiated, net of repayments
and interest -- -- --
Transfer among funds, net 1,850,474(1,837,194) --
----------------------------------
Net increase (decrease) during the year 2,463,770 488,594 30,776,706
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
beginning of year 9,675,803 5,841,134138,396,949
----------------------------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
end of year $12,139,573$6,329,728 $169,173,655
================================
The accompanying notes and Supplemental Schedules are an integral
part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SUPPLEMENTAL SCHEDULE 4
TJ INTERNATIONAL, INC. 1 of 4
EIN: 82-0250992
INVESTMENT PLAN
PLAN NUMBER 002
ITEM 27(d) - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
Type (3) - Series of Transactions Were Calculated as 5% of Beginning Net
Assets or $8,458,683
<S> <C> <C>
Number of
Identity of Description of Assets, Interest Purchase
Party Involved Rate and Maturity Date Transactions
- --------------------------------------------------------------------
Series of Transactions
Fidelity Management Institutional Money Market ** 205
Trust Company *
Fidelity Investments * Income Portfolio Fund **, 205
interest rates and maturity
dates variable
Fidelity Investments * Puritan Fund ** 222
Fidelity Investments * Spartan U.S. Equity Index Fund ** 228
Fidelity Investments * Value Fund ** 209
Fidelity Investments * Magellan Fund ** 220
TJ International, Inc. * TJ Common Stock Fund ** 249
<PAGE>
2 of 4
<S> <C> <C> <C>
Total Total
Number of Dollar Dollar
Sales Value of Value of
Transactions Purchases Sales
------------ --------- ------------
Series of Transactions
Fidelity Management 181 $51,043,151 $51,199,467
Trust Company *
Fidelity Investments * 181 25,222,414 17,615,265
Fidelity Investments * 190 10,473,969 9,957,660
Fidelity Investments * 170 10,919,482 8,195,571
Fidelity Investments * 179 9,484,998 10,088,188
Fidelity Investments * 171 9,906,839 5,007,247
TJ International, Inc. * 225 36,035,555 32,434,669
<PAGE>
3 of 4
<S> <C> <C>
Costs of Cost of
Assets Purchased Assets Sold
---------------- -----------
Series of Transactions
Fidelity Management $51,043,151 $51,199,467
Trust Company *
Fidelity Investments * 25,222,414 17,615,265
Fidelity Investments * 10,473,969 9,197,882
Fidelity Investments * 10,919,482 7,520,234
Fidelity Investments * 9,484,998 10,208,853
Fidelity Investments * 9,906,839 4,651,169
TJ International, Inc. * 36,035,555 30,607,276
<PAGE>
4 of 4
<S> <C> <C> <C>
Fair Value Fair Value
of Purchased of Sold
Assets on Assets on
Transaction Transaction
Date Date Net Gain
------------ ----------- ------------
Series of Transactions
Fidelity Management $51,043,151 $51,199,467 $ --
Trust Company *
Fidelity Investments * 25,222,414 17,615,265 --
Fidelity Investments * 10,473,969 9,957,660 759,778
Fidelity Investments * 10,919,482 8,195,571 675,337
Fidelity Investments * 9,484,998 10,088,188 (120,665)
Fidelity Investments * 9,906,839 5,007,247 356,078
TJ International, Inc. * 36,035,555 32,434,669 1,827,393
* Known party-in-interest
** There were no category 1, 2, or 4 transactions during 1998
The accompanying notes are an integral part of these schedules.
</TABLE>
