-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NGbamvp8/gisJsUNwtjFkuDjfNR75mPfzMFnkZZkNWffnjhvHZBm6acRcPLGRgR0 aGpyGYScPSVDxUZrJNtB2Q== 0000914039-98-000258.txt : 19980630 0000914039-98-000258.hdr.sgml : 19980630 ACCESSION NUMBER: 0000914039-98-000258 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980629 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CUNO INC CENTRAL INDEX KEY: 0001019779 STANDARD INDUSTRIAL CLASSIFICATION: COATING, ENGRAVING & ALLIED SERVICES [3470] IRS NUMBER: 061159240 STATE OF INCORPORATION: DE FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 000-21109 FILM NUMBER: 98656309 BUSINESS ADDRESS: STREET 1: 400 RESEARCH PARKWAY CITY: HERIDEA STATE: CT ZIP: 06450 BUSINESS PHONE: 203-237-55 MAIL ADDRESS: STREET 1: 400 RESEARCH PARKWAY CITY: HERIDEA STATE: CT ZIP: 06450 11-K 1 FORM 11-K 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 11-K ANNUAL REPORT UNDER SECTION 15 (d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the year ended December 31, 1997 Commission file number 000-21109 CUNO INCORPORATED SAVINGS AND RETIREMENT PLAN (Full title of the plan ) CUNO INCORPORATED 400 RESEARCH PARKWAY MERIDEN, CONNECTICUT 06450 (Name and issuer of the securities held pursuant to the plan and the address of its principal executive office) 2 FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES CUNO INCORPORATED SAVINGS AND RETIREMENT PLAN Year ended December 31, 1997 and period from September 10 (date of adoption) to December 31, 1996 with Report of Independent Auditors 3 CUNO INCORPORATED SAVINGS AND RETIREMENT PLAN AUDITED FINANCIAL STATEMENTS
Page ---- Report of Independent Auditors Statements of Assets Available for Plan Benefits December 31, 1997 1 December 31, 1996 2 Statements of Changes in Assets Available for Plan Benefits Year ended December 31, 1997 3 Period from September 10, 1996 to December 31, 1996 4 Notes to Financial Statements 5-7 Schedules of Assets Held for Investment Purposes December 31, 1997 8 December 31, 1996 9 Exhibit 23 -- Consent of Independent Auditors 10
4 REPORT OF INDEPENDENT AUDITORS Administrative Committee CUNO Incorporated Savings and Retirement Plan We have audited the accompanying statements of assets available for plan benefits of the CUNO Incorporated Savings and Retirement Plan (the "Plan") as of December 31, 1997 and 1996, and the related statements of changes in assets available for plan benefits for the year ended December 31, 1997 and the period from September 10 (date of adoption) to December 31, 1996. Our audit also included the supplemental schedules of investments as of December 31, 1997 and 1996. These financial statements and supplemental schedules are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit 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 audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the assets available for plan benefits of the Plan at December 31, 1997 and 1996, and the changes in assets available for plan benefits for the year ended December 31, 1997 and the period from September 10 to December 31, 1996 in conformity with generally accepted accounting principles. Also, in our opinion, the related supplemental schedules of investments, when considered in relation to the financial statements taken as a whole, present fairly in all material respects, the information set forth therein. Our audit was performed for the purpose of forming an opinion on the financial statements taken as a whole. The fund information in the financial statements is presented for purposes of additional analysis rather than to present the assets available for benefits and changes in assets available for benefits of each fund. The fund information has been subjected to the auditing procedures applied in our audit of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. Hartford, Connecticut June 24, 1998 /s/ Ernst & Young LLP 5 CUNO INCORPORATED SAVINGS AND RETIREMENT PLAN STATEMENT OF ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION DECEMBER 31, 1997
FUND INFORMATION ------------------------------------------------------------------------------------ AMERICAN AMERICAN AMERICAN BENHAM CENTURY CENTURY CENTURY INTERMEDIATE STRATEGIC STRATEGIC STRATEGIC BARCLAYS BENHAM TERM TREASURY ALLOCATION: ALLOCATION: ALLOCATION: EQUITY STABLE ASSET FIXED INCOME CONSERVATIVE MODERATE AGGRESSIVE INDEX FUND* FUND FUND FUND* FUND* FUND* ------------ ------------- ------------ ----------- ----------- ---------- Investments: Mutual funds $ 2,467,867 $ 691,866 $ 572,314 $ 1,490,694 $ 1,374,418 $2,182,462 CUNO Incorporated common stock -- -- -- -- -- -- Participant loans receivable -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ---------- 2,467,867 691,866 572,314 1,490,694 1,374,418 2,182,462 Receivables: Employer's contribution -- -- -- -- -- -- Participants' contributions 13,372 4,936 5,465 14,741 18,088 28,122 ----------- ----------- ----------- ----------- ----------- ---------- 13,372 4,936 5,465 14,741 18,088 28,122 ----------- ----------- ----------- ----------- ----------- ---------- Assets available for benefits $ 2,481,239 $ 696,802 $ 577,779 $ 1,505,435 $ 1,392,506 $2,210,584 =========== =========== =========== =========== =========== ==========
FUND INFORMATION ------------------------------------------------------------------------------------------ TWENTIETH AMERICAN TWENTIETH AMERICAN CENTURY CENTURY CUNO CUNO CENTURY CENTURY INTERNATIONAL EQUITY STOCK FUND: STOCK FUND: PARTICIPANT ULTRA VALUE GROWTH GROWTH PARTICIPANT EMPLOYER LOAN FUND* FUND FUND FUND DIRECTED* MATCH FUND ---------- -------- ------------- -------- ----------- ----------- ----------- Investments: Mutual funds $3,279,829 $211,977 $ 116,189 $251,038 -- -- -- CUNO Incorporated common stock -- -- -- -- $ 1,567,540 $ 107,896 -- Participant loans receivable -- -- -- -- -- -- $ 330,483 ---------- -------- ----------- -------- ----------- ----------- ----------- 3,279,829 211,977 116,189 251,038 1,567,540 107,896 330,483 Receivables: Employer's contribution -- -- -- -- -- 565,082 -- Participants' contributions 41,377 11,613 11,743 12,604 11,336 -- -- ---------- -------- ----------- -------- ----------- ----------- ----------- 41,377 11,613 11,743 12,604 11,336 565,082 -- ---------- -------- ----------- -------- ----------- ----------- ----------- Assets available for benefits $3,321,206 $223,590 $ 127,932 $263,642 $ 1,578,876 $ 672,978 $ 330,483 ========== ======== =========== ======== =========== =========== ===========
TOTAL ----------- Investments: Mutual funds $12,638,654 CUNO Incorporated common stock 1,675,436 Participant loans receivable 330,483 ----------- 14,644,573 Receivables: Employer's contribution 565,082 Participants' contributions 173,397 ----------- 738,479 ----------- Assets available for benefits $15,383,052 ===========
* An individual investment which represents more than 5% of the plan assets available for benefits. -1- See accompanying notes. 6 CUNO INCORPORATED SAVINGS AND RETIREMENT PLAN STATEMENT OF ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION DECEMBER 31, 1996
FUND INFORMATION -------------------------------------------------------------------------------- AMERICAN AMERICAN AMERICAN BENHAM CENTURY CENTURY CENTURY INTERMEDIATE STRATEGIC STRATEGIC STRATEGIC BENHAM TERM TREASURY ALLOCATION: ALLOCATION: ALLOCATION: STABLE ASSET FIXED INCOME CONSERVATIVE MODERATE AGGRESSIVE FUND* FUND* FUND FUND* FUND* ------------ ------------- ------------ ----------- ----------- Investments: Mutual funds $1,321,654 $ 350,373 $ 308,569 $ 740,506 $ 657,852 CUNO Incorporated common stock -- -- -- -- -- Participant loans receivable -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- 1,321,654 350,373 308,569 740,506 657,852 Receivables: Employer's contribution -- -- -- -- -- Participants' contributions 15,348 5,169 4,764 22,031 17,719 ---------- ---------- ---------- ---------- ---------- 15,348 5,169 4,764 22,031 17,719 ---------- ---------- ---------- ---------- ---------- Assets available for benefits $1,337,002 $ 355,542 $ 313,333 $ 762,537 $ 675,571 ========== ========== ========== ========== ==========
FUND INFORMATION ----------------------------------------------------------------------- BARCLAYS TWENTIETH CUNO CUNO EQUITY CENTURY STOCK FUND: STOCK FUND: PARTICIPANT INDEX ULTRA PARTICIPANT EMPLOYER LOAN FUND* FUND* DIRECTED* MATCH FUND TOTAL ---------- ---------- ----------- ----------- ----------- ---------- Investments: Mutual funds $ 770,155 $1,347,926 -- -- -- $5,497,035 CUNO Incorporated common stock -- -- $1,016,305 -- -- 1,016,305 Participant loans receivable -- -- -- -- $ 209,180 209,180 ---------- ---------- ---------- ---------- ---------- ---------- 770,155 1,347,926 1,016,305 -- 209,180 6,722,520 Receivables: Employer's contribution -- -- -- $ 131,255 -- 131,255 Participants' contributions 19,701 39,338 13,604 -- -- 137,674 ---------- ---------- ---------- ---------- ---------- ---------- 19,701 39,338 13,604 131,255 -- 268,929 ---------- ---------- ---------- ---------- ---------- ---------- Assets available for benefits $ 789,856 $1,387,264 $1,029,909 $ 131,255 $ 209,180 $6,991,449 ========== ========== ========== ========== ========== ==========
* An individual investment which represents more than 5% of the plan assets available for benefits. See accompanying notes. -2- 7 CUNO INCORPORATED SAVINGS AND RETIREMENT PLAN STATEMENT OF CHANGES IN ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION YEAR ENDED DECEMBER 31, 1997
FUND INFORMATION ------------------------------------------------------------------------------------ AMERICAN AMERICAN AMERICAN BENHAM CENTURY CENTURY CENTURY INTERMEDIATE STRATEGIC STRATEGIC STRATEGIC BENHAM TERM TREASURY ALLOCATION: ALLOCATION: ALLOCATION: STABLE ASSET FIXED INCOME CONSERVATIVE MODERATE AGGRESSIVE FUND FUND FUND FUND FUND ------------ ------------- ------------ ----------- ------------ ADDITIONS: Additions to net assets attributed to: Interest income Net realized and unrealized appreciation (depreciation) in fair value of investments -- $ 14,220 $ 3,985 $ 75,080 $ 82,401 Dividend income $ 102,540 27,375 46,866 75,474 64,675 ----------- ----------- ----------- ----------- ----------- 102,540 41,595 50,851 150,554 147,076 Less investment expenses 418 99 219 539 865 ----------- ----------- ----------- ----------- ----------- 102,122 41,496 50,632 150,015 146,211 ----------- ----------- ----------- ----------- ----------- Contributions: Participants 389,192 124,504 106,069 288,273 315,530 Employer -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- 389,192 124,504 106,069 288,273 315,530 ----------- ----------- ----------- ----------- ----------- Total Additions 491,314 166,000 156,701 438,288 461,741 ----------- ----------- ----------- ----------- ----------- DEDUCTIONS: Benefits paid to participants 94,396 7,566 3,024 13,636 25,886 ----------- ----------- ----------- ----------- ----------- Total deductions 94,396 7,566 3,024 13,636 25,886 ----------- ----------- ----------- ----------- ----------- Net increase prior to interfund transfers 396,918 158,434 153,677 424,652 435,855 Interfund transfers 747,319 182,826 110,769 318,246 281,080 ----------- ----------- ----------- ----------- ----------- Net increase 1,144,237 341,260 264,446 742,898 716,935 Assets at beginning of period 1,337,002 355,542 313,333 762,537 675,571 ----------- ----------- ----------- ----------- ----------- Assets at end of period $ 2,481,239 $ 696,802 $ 577,779 $ 1,505,435 $ 1,392,506 =========== =========== =========== =========== ===========
FUND INFORMATION --------------------------------------------------------------------------------- TWENTIETH AMERICAN TWENTIETH AMERICAN CENTURY CENTURY BARCLAYS CENTURY CENTURY INTERNATIONAL EQUITY EQUITY INDEX ULTRA VALUE GROWTH GROWTH FUND FUND FUND FUND FUND ------------ ----------- ----------- ------------- -------- ADDITIONS: Additions to net assets attributed to: Interest income Net realized and unrealized appreciation (depreciation) in fair value of investments $ 359,512 $ (253,463) $ (21,880) $ (18,206) $ (7,400) Dividend income 55 667,342 32,707 15,402 27,833 ----------- ----------- ----------- ----------- -------- 359,567 413,879 10,827 (2,804) 20,433 Less investment expenses 616 1,167 48 15 28 ----------- ----------- ----------- ----------- -------- 358,951 412,712 10,779 (2,819) 20,405 ----------- ----------- ----------- ----------- -------- Contributions: Participants 420,158 693,542 33,520 24,166 32,020 Employer -- -- -- -- -- ----------- ----------- ----------- ----------- -------- 420,158 693,542 33,520 24,166 32,020 ----------- ----------- ----------- ----------- -------- Total Additions 779,109 1,106,254 44,299 21,347 52,425 ----------- ----------- ----------- ----------- -------- DEDUCTIONS: Benefits paid to participants 26,967 110,111 16 134 16 ----------- ----------- ----------- ----------- -------- Total deductions 26,967 110,111 16 134 16 ----------- ----------- ----------- ----------- -------- Net increase prior to interfund transfers 752,142 996,143 44,283 21,213 52,409 Interfund transfers 668,586 937,799 179,307 106,719 211,233 ----------- ----------- ----------- ----------- -------- Net increase 1,420,728 1,933,942 223,590 127,932 263,642 Assets at beginning of period 789,856 1,387,264 -- -- -- ----------- ----------- ----------- ----------- -------- Assets at end of period $ 2,210,584 $ 3,321,206 $ 223,590 $ 127,932 $263,642 =========== =========== =========== =========== ========
FUND INFORMATION -------------------------------------------------- CUNO CUNO STOCK FUND: STOCK FUND: PARTICIPANT PARTICIPANT EMPLOYER LOAN DIRECTED MATCH FUND TOTAL ----------- ----------- ------------ ----------- ADDITIONS: Additions to net assets attributed to: Interest income $ 19,699 $ 19,699 Net realized and unrealized appreciation (depreciation) in fair value of investments $ 1,972,583 $ (10,960) -- 2,195,872 Dividend income 104,370 -- -- 1,164,639 ----------- ----------- ----------- ----------- 2,076,953 (10,960) 19,699 3,380,210 Less investment expenses 85 -- -- 4,099 ----------- ----------- ----------- ----------- 2,076,868 (10,960) 19,699 3,376,111 ----------- ----------- ----------- ----------- Contributions: Participants 2,447,274 -- -- 4,874,248 Employer -- 565,082 -- 565,082 ----------- ----------- ----------- ----------- 2,447,274 565,082 -- 5,439,330 ----------- ----------- ----------- ----------- Total Additions 4,524,142 554,122 19,699 8,815,441 ----------- ----------- ----------- ----------- DEDUCTIONS: Benefits paid to participants 136,679 5,407 423,838 ----------- ----------- ----------- ----------- Total deductions 136,679 5,407 -- 423,838 ----------- ----------- ----------- ----------- Net increase prior to interfund transfers 4,387,463 548,715 19,699 8,391,603 Interfund transfers (3,838,496) (6,992) 101,604 -- ----------- ----------- ----------- ----------- Net increase 548,967 541,723 121,303 8,391,603 Assets at beginning of period 1,029,909 131,255 209,180 6,991,449 ----------- ----------- ----------- ----------- Assets at end of period $ 1,578,876 $ 672,978 $ 330,483 $15,383,052 =========== =========== =========== ===========
See accompanying notes. -3- 8 CUNO INCORPORATED SAVINGS AND RETIREMENT PLAN STATEMENT OF CHANGES IN ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION PERIOD FROM SEPTEMBER 10 TO DECEMBER 31, 1996
FUND INFORMATION --------------------------------------------------------------------- AMERICAN AMERICAN BENHAM CENTURY CENTURY INTERMEDIATE STRATEGIC STRATEGIC BENHAM TERM TREASURY ALLOCATION: ALLOCATION: STABLE ASSET FIXED INCOME CONSERVATIVE MODERATE FUND FUND FUND FUND ------------ ------------- ------------ ------------ ADDITIONS: Additions to net assets attributed to Investment income: Net realized and unrealized appreciation (depreciation) in fair value of investments -- $ (1,717) $ (605) $ 26 Dividend income $ 1,327 262 52 91 ----------- ----------- ----------- ----------- 1,327 (1,455) (553) 117 Less investment expenses -- -- -- -- ----------- ----------- ----------- ----------- 1,327 (1,455) (553) 117 ----------- ----------- ----------- ----------- Contributions: Participants 1,335,660 356,997 313,886 762,487 Employer -- -- -- -- ----------- ----------- ----------- ----------- 1,335,660 356,997 313,886 762,487 ----------- ----------- ----------- ----------- Total Additions 1,336,987 355,542 313,333 762,604 ----------- ----------- ----------- ----------- Interfund transfers 15 -- -- (67) ----------- ----------- ----------- ----------- Net increase 1,337,002 355,542 313,333 762,537 Assets at beginning of period -- -- -- -- ----------- ----------- ----------- ----------- Assets at end of period $ 1,337,002 $ 355,542 $ 313,333 $ 762,537 =========== =========== =========== ===========
FUND INFORMATION -------------------------------------------------------------------- AMERICAN CENTURY STRATEGIC TWENTIETH CUNO ALLOCATION: BARCLAYS CENTURY STOCK FUND: AGGRESSIVE EQUITY INDEX ULTRA PARTICIPANT FUND FUND FUND DIRECTED ----------- ------------ ----------- ----------- ADDITIONS: Additions to net assets attributed to Investment income: Net realized and unrealized appreciation (depreciation) in fair value of investments $ (1,316) $ (15,465) $ (31,761) $ (1,534) Dividend income 199 -- 2,749 -- ----------- ----------- ----------- ----------- (1,117) (15,465) (29,012) (1,534) Less investment expenses -- -- -- -- ----------- ----------- ----------- ----------- (1,117) (15,465) (29,012) (1,534) ----------- ----------- ----------- ----------- Contributions: Participants 676,755 805,539 1,416,167 1,031,215 Employer -- -- -- -- ----------- ----------- ----------- ----------- 676,755 805,539 1,416,167 1,031,215 ----------- ----------- ----------- ----------- Total Additions 675,638 790,074 1,387,155 1,029,681 ----------- ----------- ----------- ----------- Interfund transfers (67) (218) 109 228 ----------- ----------- ----------- ----------- Net increase 675,571 789,856 1,387,264 1,029,909 Assets at beginning of period -- -- -- -- ----------- ----------- ----------- ----------- Assets at end of period $ 675,571 $ 789,856 $ 1,387,264 $ 1,029,909 =========== =========== =========== ===========
FUND INFORMATION ----------------------------- CUNO STOCK FUND: PARTICIPANT EMPLOYER LOAN MATCH FUND TOTAL ----------- ----------- ----------- ADDITIONS: Additions to net assets attributed to Investment income: Net realized and unrealized appreciation (depreciation) in fair value of investments -- -- $ (52,372) Dividend income -- -- 4,680 ----------- ----------- ----------- -- -- (47,692) Less investment expenses -- -- -- ----------- ----------- ----------- -- -- (47,692) ----------- ----------- ----------- Contributions: Participants -- $ 209,180 6,907,886 Employer $ 131,255 -- 131,255 ----------- ----------- ----------- 131,255 209,180 7,039,141 ----------- ----------- ----------- Total Additions 131,255 209,180 6,991,449 ----------- ----------- ----------- Interfund transfers -- -- -- ----------- ----------- ----------- Net increase 131,255 209,180 6,991,449 Assets at beginning of period -- -- -- ----------- ----------- ----------- Assets at end of period $ 131,255 $ 209,180 $ 6,991,449 =========== =========== ===========
See accompanying notes. -4- 9 CUNO Incorporated Savings and Retirement Plan Notes to Financial Statements December 31, 1997 1. DESCRIPTION OF PLAN The CUNO Incorporated Savings and Retirement Plan (the "Plan") consists of a pre-tax savings program, a post-tax savings program, and an employer matching program. The Plan was adopted as of September 10, 1996. All employees of CUNO Incorporated (the "Company" or "Plan Sponsor" or "Employer") that have been credited with at least 500 hours of service within a six month period following their initial date of employment, or have completed one year of service recognized by the Plan, are eligible to participate in the Plan. The Plan is subject to the applicable provisions of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). Under the pre-tax program, participants may elect to contribute up to 15 percent of their compensation, on a tax-deferred basis, to the Plan. Under the post-tax program, participants may elect to contribute up to an additional 10 percent of their compensation. These contributions are made with after-tax dollars and do not receive Company matching contributions. Participants may also contribute amounts representing distributions from other qualified defined benefit or contribution plans. The Company makes an annual discretionary matching contribution, in the form of Company common stock, that represents a percentage of the participants' pre-tax contributions. The matching percentage is applied to each participant's pre-tax contributions not exceeding 6 percent of eligible compensation. All investment account dollars that result from employee contributions and related plan earnings are immediately vested. Company matching contributions plus actual earnings thereon vest based on years of continuous service. A participant is 100 percent vested after five years of credited service. Participants also become fully vested in Company matching contributions upon attainment of their normal retirement date, or upon their death or disability. If the participant's employment with the Company terminates for other reasons, and the participant elects to receive distribution of his or her account, the vested portion of his or her account is distributed to the participant and the non-vested portion of the participant's account is used to reduce the Company matching contribution. There were no non-vested assets attributed to terminated employees at December 31, 1997 or 1996. Fully-vested amounts allocated to accounts of persons who have elected to withdraw from the plan amounted to $713,190 at December 31, 1997 (none at December 31, 1996). -5- 10 The Plan provides for separate investment options in one or more funds as directed by the participants. These options include the Benham Stable Asset Fund, the Benham Intermediate-Term Treasury Fixed Income Fund, the Twentieth Century Strategic Allocation: Conservative Fund, the Twentieth Century Strategic Allocation: Moderate Fund, the Twentieth Century Strategic Allocation: Aggressive Fund, the Barclays Equity Index Fund, the Twentieth Century Ultra Fund, the Twentieth Century Value Fund, the Twentieth Century International Growth Fund, the Twentieth Century Equity Growth Fund, and the CUNO Stock Fund. The participants may change their investment alternatives semi-annually. The Plan is administered by the Administrative Committee (the "Committee") appointed by the Company's Board of Directors. Chase Manhattan Bank, N.A., an independent third-party bank, is the Plan's trustee. The Company has the sole right to appoint the trustee, and to terminate the Plan, subject to the provisions of ERISA. The Company pays all significant administrative expenses. Participants may borrow from their fund accounts up to a maximum equal to the lessor of $50,000 or 50 percent of their account balance. Loan transactions are treated as a transfer to/(from) the investment fund from/(to) the Participant Loan Fund. Loan terms range from 1-5 years, except for the purchase of a primary residence, which term may be a reasonable period of time that may exceed five years. The loans are secured by the balance in the participant's account and bear interest at a rate commensurate with local prevailing rates as determined by the Plan Administrator. Principal and interest is paid ratably through monthly payroll deductions. Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants will become 100 percent vested in their accounts. The foregoing description of the Plan provides only general information. Additional information about the plan agreement, forfeitures, and distributions from the Plan may be obtained from the Committee. 2. SIGNIFICANT ACCOUNTING POLICIES VALUATION OF INVESTMENTS Investments in common stock of CUNO Incorporated are carried at the closing market price on the last business day of the year. Participant loans receivable are valued at cost which approximates fair value. Investments in mutual funds are carried at the fair value of their underlying net assets as determined by their respective fund managers, based primarily on market data. Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. -6- 11 USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires the administrator to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. 3. INCOME TAX STATUS On December 31, 1996, the Internal Revenue Service ruled that the Plan qualifies under Section 401(a) of the Internal Revenue Code and is, therefore, not subject to tax under present income tax law. Once qualified, the Plan is required to operate in conformity with the Internal Revenue Code to maintain its qualification. The Plan Administrator is not aware of any course of action or series of events that have occurred that might adversely affect the Plan's qualified status. 4. TRANSACTIONS WITH PARTIES-IN-INTEREST The statements of changes in assets available for benefits reflect non cash matching contributions from the Company consisting of shares of the Company's common stock. Such shares are recorded based on their fair market value. 5. YEAR 2000 ISSUE (UNAUDITED) The Plan Sponsor has developed a plan to modify its internal information technology to be ready for the year 2000 and has begun converting critical data processing systems. The project also includes determining whether third party service providers have reasonable plans in place to become year 2000 compliant. The Plan Sponsor currently expects the project to be substantially complete by early 1999. The Plan Sponsor does not expect this project to have a significant effect on plan operations. -7- 12 CUNO INCORPORATED SAVINGS AND RETIREMENT PLAN SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1997
CURRENT IDENTITY OF PARTY DESCRIPTION OF INVESTMENT COST VALUE - ----------------- ------------------------- ---- ----- Benham Stable Asset Fund Units $ 2,467,867 $ 2,467,867 Benham Intermediate Term Treasury Fixed Income Fund Units 679,387 691,866 American Century Strategic Allocation: Conservative Fund Units 572,241 572,314 American Century Strategic Allocation: Moderate Fund Units 1,425,987 1,490,694 American Century Strategic Allocation: Aggressive Fund Units 1,310,485 1,374,418 Barclays Equity Index Fund Units 1,854,184 2,182,462 Twentieth Century Ultra Fund Units 3,597,396 3,279,829 American Century Value Fund Units 233,667 211,977 Twentieth Century International Growth Fund Units 133,990 116,189 American Century Equity Growth Fund Units 259,059 251,038 CUNO Incorporated Common stock 1,515,964 1,567,540 CUNO Incorporated Common stock 119,140 107,896 Participant Notes Loans receivable -- 330,483 ----------- ----------- $14,169,367 $14,644,573 =========== ===========
All of the above parties are considered parties-in-interest. -8- 13 CUNO INCORPORATED SAVINGS AND RETIREMENT PLAN SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1996
CURRENT IDENTITY OF PARTY DESCRIPTION OF INVESTMENT COST VALUE - ----------------- ------------------------- ---- ----- Benham Stable Asset Fund Units $1,321,654 $1,321,654 Benham Intermediate Term Treasury Fixed Income Fund Units 352,090 350,373 American Century Strategic Allocation: Conservative Fund Units 309,174 308,569 American Century Strategic Allocation: Moderate Fund Units 740,480 740,506 American Century Strategic Allocation: Aggressive Fund Units 659,168 657,852 Barclays Equity Index Fund Units 785,619 770,155 Twentieth Century Ultra Fund Units 1,379,687 1,347,926 CUNO Incorporated Common stock 1,017,840 1,016,305 Participant Notes Loans receivable -- 209,180 ---------- ---------- $6,565,712 $6,722,520 ========== ==========
All of the above parties are considered parties-in-interest. -9- EX-23 2 EXHIBIT 23 1 Exhibit 23 CONSENT OF INDEPENDENT AUDITORS We consent to the incorporation by reference in the Registration Statement (Form S-8 No. 333-39763) pertaining to the CUNO Incorporated 1996 Stock Incentive Plan, CUNO Incorporated Non-Employee Directors' Stock Option Plan and CUNO Incorporated Savings and Retirement Plan of our report dated June 24, 1998, with respect to the financial statements and schedules of the CUNO Incorporated Savings and Retirement Plan included in this Annual Report (Form 11-K) for the year ended December 31, 1997. Hartford, Connecticut June 29, 1998 /s/ Ernst & Young LLP -10- -----END PRIVACY-ENHANCED MESSAGE-----