-----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, Q+BagAQZHIivX6UqSIFMC/PaS/af5HJCyCIsB7brPYuvJ06jVzabgcT8t+CK5Euf P7F58qKgc2zBjVw1npENBA== 0000891554-96-000390.txt : 19960702 0000891554-96-000390.hdr.sgml : 19960702 ACCESSION NUMBER: 0000891554-96-000390 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960701 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: WITCO CORP CENTRAL INDEX KEY: 0000107889 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL ORGANIC CHEMICALS [2860] IRS NUMBER: 131870000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-04654 FILM NUMBER: 96589670 BUSINESS ADDRESS: STREET 1: ONE AMERICAN WAY CITY: GREENWICH STATE: CT ZIP: 06831 BUSINESS PHONE: 2126053800 MAIL ADDRESS: STREET 1: ONE AMERICAN LANE CITY: GREENWICH STATE: CT ZIP: 06831 FORMER COMPANY: FORMER CONFORMED NAME: WITCO CHEMICAL CORP DATE OF NAME CHANGE: 19851117 FORMER COMPANY: FORMER CONFORMED NAME: WITCO CHEMICAL CO INC DATE OF NAME CHANGE: 19681203 11-K 1 ANNUAL REPORT 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 [ X ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED] For the Fiscal Year Ended December 31, 1995 [ ] TRANSITION REPORT, PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] Commission file number 1-4654 Full title of Plan: WITCO CORPORATION EMPLOYEE RETIREMENT SAVINGS PLAN Name of issuer of the securities held pursuant to the plan and the address of its principal office: WITCO CORPORATION ONE AMERICAN LANE GREENWICH, CONNECTICUT 06831-2559 SIGNATURE The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the administrators of the Witco Corporation Employee Retirement Savings Plan have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. WITCO CORPORATION EMPLOYEE RETIREMENT SAVINGS PLAN Date: June 28, 1996 By /s/ Michael D. Fullwood ---------------------------------- Michael D. Fullwood Executive Vice President and Chief Financial Officer of Witco Corporation and Administrator of the Witco Corporation Employee Retirement Savings Plan Witco Corporation Employee Retirement Savings Plan Financial Statements And Supplemental Schedules Years Ended December 31, 1995 and 1994
Contents Report of Independent Auditors............................................................................................ F-1 Financial Statements Statements of Assets Available for Benefits, with Fund Information (Modified Cash Basis) as of December 31, 1995 and 1994....................................................................................... F-2 Statements of Changes in Assets Available for Benefits, with Fund Information (Modified Cash Basis) for the Years Ended December 31, 1995 and 1994................................................... F-3 Notes to Financial Statements............................................................................................. F-11 Supplemental Schedules Schedule of Assets Held for Investment Purposes........................................................................... F-17 Schedule of Reportable Transactions....................................................................................... F-18
Report of Independent Auditors Management Committee of Witco Corporation Witco Corporation We have audited the accompanying statements of assets available for benefits (modified cash basis) of the Witco Corporation Employee Retirement Savings Plan as of December 31, 1995 and 1994, and the related statements of changes in assets available for benefits (modified cash basis) for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. These 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. As described in Note 1, the financial statements and supplemental schedules were prepared on a modified cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles. In our opinion, the financial statements referred to above present fairly, in all material respects, the assets available for benefits of the Witco Corporation Employee Retirement Savings Plan as of December 31, 1995 and 1994, and the changes in assets available for benefits for the years then ended, on the basis of accounting described in Note 1. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules (modified cash basis) of assets held for investment purposes as of December 31, 1995 and reportable transactions for the year then ended 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 for Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The Fund Information in the statement of assets available for benefits and the statement of changes in assets available for benefits is presented for purposes of additional analysis rather than to present the assets available for plan benefits and changes in 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. /s/ Ernst & Young LLP June 24, 1996 F-1 Witco Corporation Employee Retirement Savings Plan Statements of Assets Available for Benefits, with Fund Information (Modified Cash Basis)
December 31 1995 1994 ------------ ------------ Assets: Group Annuity Contract (Notes 2 and 4): NY Life Ins. Co. GA# 06022 $ -- $ 17,143,437 Witco Common Stock Fund 12,938,708 10,238,042 Mutual Funds (Notes 2 and 4): Blended Income Fund 64,484,308 51,598,910 Fidelity Magellan Fund 22,752,970 13,068,605 Fidelity Asset Manager Fund 12,354,038 10,655,972 Fidelity ShortBIntermediate Government Fund -- 5,922,354 Fidelity International Growth and Income Fund 5,335,672 5,052,501 Fidelity Equity Income Fund 8,811,794 4,601,805 Fidelity Asset Manager: Growth Fund 3,855,765 4,358,553 Fidelity Growth Company Fund 6,081,371 2,725,544 Fidelity Asset Manager: Income Fund 1,819,903 1,487,932 Fidelity Institutional Short-Intermediate Government Fund 6,816,871 -- Participant Loans Receivable 3,354,218 2,653,086 ------------ ------------ Assets available for benefits $148,605,618 $129,506,741 ============ ============
See notes to financial statements. F-2 Witco Corporation Employee Retirement Savings Plan Statement of Changes in Assets Available for Benefits, with Fund Information (Modified Cash Basis) Year Ended December 31, 1995
Group Annuity Contract: New York Witco Fidelity Life Ins. Co. Common Blended Magellan GA# 06022 Stock Fund Income Fund Fund ----------------------------------------------------------------------- Additions to assets attributed to: Investment income Gains (losses) on investments Unrealized $ -- $ 1,823,755 $ -- $ 3,392,926 Realized -- 638,147 -- 440,131 Interest -- -- 4,204,460 -- Dividends -- -- -- 1,290,511 ----------------------------------------------------------------------- -- 2,461,902 4,204,460 5,123,568 ----------------------------------------------------------------------- Contributions Participants -- 1,771,835 3,320,227 2,220,699 Employer -- 565,342 1,185,414 695,597 ----------------------------------------------------------------------- -- 2,337,177 4,505,641 2,916,296 ----------------------------------------------------------------------- Loan repayments (interest and principal) 12 207,371 484,956 304,211 Other -- 2,238 -- 10,143 ----------------------------------------------------------------------- Total additions 12 5,008,688 9,195,057 8,354,218 ----------------------------------------------------------------------- Deductions from assets attributed to: Withdrawals (43,966) (1,148,693) (9,298,795) (1,388,027) Administrative expenses -- (5,250) (187,455) (10,068) Loan withdrawals -- (300,142) (884,839) (345,507) Other (12) -- (107,023) -- ----------------------------------------------------------------------- Total deductions (43,978) (1,454,085) (10,478,112) (1,743,602) ----------------------------------------------------------------------- Net increase (decrease) prior to interfund transfers (43,966) 3,554,603 (1,283,055) 6,610,616 Interfund transfers (17,099,471) (853,937) 14,168,453 3,073,749 ----------------------------------------------------------------------- Net increase (decrease) (17,143,437) 2,700,666 12,885,398 9,684,365 Assets available for benefits at beginning of year 17,143,437 10,238,042 51,598,910 13,068,605 ----------------------------------------------------------------------- Assets available for benefits at end of year $ -- $ 12,938,708 $ 64,484,308 $ 22,752,970 =======================================================================
See notes to financial statements. F-3
Fidelity Fidelity Fidelity Short- Fidelity Fidelity Asset Asset Intermediate International Equity Manager: Manager Government Growth and Income Growth Fund Fund Income Fund Fund Fund - ---------------------------------------------------------------------------- $ 1,580,649 $ 344,146 $ 428,289 $1,195,911 $ 630,723 (19,456) (101,407) (5,422) 67,373 40,323 -- -- -- -- -- 353,720 323,579 172,478 451,312 57,256 - --------------------------------------------------------------------------- 1,914,913 566,318 595,345 1,714,596 728,302 - --------------------------------------------------------------------------- 1,492,836 612,607 725,193 654,003 331,576 521,274 243,904 238,926 174,061 98,171 - --------------------------------------------------------------------------- 2,014,110 856,511 964,119 828,064 429,747 - --------------------------------------------------------------------------- 136,418 48,671 62,655 84,178 36,627 -- -- -- -- -- - --------------------------------------------------------------------------- 4,065,441 1,471,500 1,622,119 2,626,838 1,194,676 - --------------------------------------------------------------------------- (806,978) (532,875) (504,775) (617,723) (385,188) (11,177) (4,824) (1,210) (5,918) (2,230) (160,251) (97,470) (63,682) (76,914) (67,222) (1,846) (471) (1,476) (2,040) (941) - --------------------------------------------------------------------------- (980,252) (635,640) (571,143) (702,595) (455,581) - --------------------------------------------------------------------------- 3,085,189 835,860 1,050,976 1,924,243 739,095 (1,387,123) (6,758,214) (767,805) 2,285,746 (1,241,883) - --------------------------------------------------------------------------- 1,698,066 (5,922,354) 283,171 4,209,989 (502,788) 10,655,972 5,922,354 5,052,501 4,601,805 4,358,553 - --------------------------------------------------------------------------- $12,354,038 $ -- $ 5,335,672 $ 8,811,794 $ 3,855,765 ===========================================================================
F-4 Witco Corporation Employee Retirement Savings Plan Statement of Changes in Assets Available for Benefits, with Fund Information (Modified Cash Basis) (continued) Year Ended December 31, 1995
Fidelity Institutional Fidelity Asset Short- Fidelity Manager: Intermediate Growth Income Government Company Fund Fund Fund ----------------------------------------------------- Additions to assets attributed to: Investment income Gains (losses) on investments Unrealized $ 874,044 $ 159,899 $ 48,151 Realized 113,756 7,434 819 Interest -- -- 98,543 Dividends 271,278 76,697 59,620 ----------------------------------------------------- 1,259,078 244,030 207,133 ----------------------------------------------------- Contributions Participants 383,787 118,296 174,334 Employer 108,912 19,619 58,645 ----------------------------------------------------- 492,699 137,915 232,979 ----------------------------------------------------- Loan repayments (interest and principal) 44,656 8,230 27,321 Other -- -- -- ----------------------------------------------------- Total additions 1,796,433 390,175 467,433 ----------------------------------------------------- Deductions from assets attributed to: Withdrawals (409,846) (104,408) (126,840) Administrative expenses (761) (1,497) (332) Loan withdrawals (57,751) (8,721) (19,701) Other -- -- -- ----------------------------------------------------- Total deductions (468,358) (114,626) (146,873) ----------------------------------------------------- Net increase (decrease) prior to interfund transfers 1,328,075 275,549 320,560 Interfund transfers 2,027,752 56,422 6,496,311 ----------------------------------------------------- Net increase (decrease) 3,355,827 331,971 6,816,871 Assets available for benefits at beginning of year 2,725,544 1,487,932 -- ----------------------------------------------------- Assets available for benefits at end of year $ 6,081,371 $ 1,819,903 $ 6,816,871 =====================================================
See notes to financial statements. F-5
Participant Loans Total - ------------------------------ $ -- $10,478,493 -- 1,181,698 -- 4,303,003 -- 3,056,451 - ------------------------------ -- 19,019,645 - ------------------------------ -- 11,805,393 -- 3,909,865 - ------------------------------ -- 15,715,258 - ------------------------------ (1,167,539) 277,767 40 12,421 - ------------------------------ (1,167,499) 35,025,091 - ------------------------------ (213,569) (15,581,683) -- (230,722) 2,082,200 -- -- (113,809) - ------------------------------ 1,868,631 (15,926,214) - ------------------------------ 701,132 19,098,877 -- -- - ------------------------------ 701,132 19,098,877 2,653,086 129,506,741 - ------------------------------ $ 3,354,218 $ 148,605,618 ==============================
F-6 Witco Corporation Employee Retirement Savings Plan Statement of Changes in Assets Available for Benefits, with Fund Information (Modified Cash Basis) Year Ended December 31, 1994
Group Group Annuity Annuity Contract: Contracts New York (Including Witco Witco Life Ins. Co. Overnight Stock Common GA# 06022 Contract) Fund Stock Fund ----------------------------------------------------------------------- Additions to assets attributed to: Investment income Gains (losses) on investments Unrealized $ -- $ -- $ -- $ (3,246,733) Realized -- -- 33,354 925,164 Interest 1,460,748 4,270 -- 75,309 Dividends -- -- -- -- ----------------------------------------------------------------------- 1,460,748 4,270 33,354 (2,246,260) ----------------------------------------------------------------------- Contributions Participants -- -- -- 1,704,729 Employer -- -- -- 678,831 ----------------------------------------------------------------------- -- -- -- 2,383,560 ----------------------------------------------------------------------- Transfer from predecessor plan -- -- -- -- Loan repayments (interest and principal) 184 -- -- 118,215 Other 19,572 -- 4,222 324 ----------------------------------------------------------------------- Total additions 1,480,504 4,270 37,576 255,839 ----------------------------------------------------------------------- Deductions from assets attributed to: Withdrawals (1,649,158) (970,671) (157,171) (707,917) Administrative expenses (8,996) -- -- (3,759) Loan withdrawals (297,137) -- -- (323,180) Other -- (4,226) -- -- ----------------------------------------------------------------------- Total deductions (1,955,291) (974,897) (157,171) (1,034,856) ----------------------------------------------------------------------- Net increase (decrease) prior to interfund transfers (474,787) (970,627) (119,595) (779,017) Interfund transfers 17,618,224 (35,531,787) (9,561,289) 11,017,059 ----------------------------------------------------------------------- Net increase (decrease) 17,143,437 (36,502,414) (9,680,884) 10,238,042 Assets available for benefits at beginning of year -- 36,502,414 9,680,884 -- ----------------------------------------------------------------------- Assets available for benefits at end of year $17,143,437 $ -- $ -- $ 10,238,042 =======================================================================
See notes to financial statements F-7
Fidelity Fidelity Fidelity Short- International Fidelity Fidelity Asset Blended Fidelity Asset Intermediate Growth and Equity Manager: Income Magellan Manager Government Income Income Growth Fund Fund Fund Fund Fund Fund Fund - ----------------------------------------------------------------------------------------------------------------------- $ -- $ (582,720) $ (873,726) $ (344,145) $ (288,545) $ (276,557) $ (281,212) -- (74,645) (201,242) (131,575) (20,613) (66,296) (540) 3,022,529 -- -- -- -- -- -- -- 462,197 403,654 371,534 155,119 378,566 117,762 - ----------------------------------------------------------------------------------------------------------------------- 3,022,529 (195,168) (671,314) (104,186) (154,039) 35,713 (163,990) - ----------------------------------------------------------------------------------------------------------------------- 3,302,445 1,628,587 1,712,351 903,426 758,235 273,482 229,770 1,493,850 669,535 708,757 400,926 309,136 105,008 70,043 - ----------------------------------------------------------------------------------------------------------------------- 4,796,295 2,298,122 2,421,108 1,304,352 1,067,371 378,490 299,813 - ----------------------------------------------------------------------------------------------------------------------- 25,227,374 -- -- 794,938 -- 2,891,030 -- 252,303 123,241 59,495 30,827 31,053 54,192 28,913 -- -- -- 8,811 45 -- -- - ----------------------------------------------------------------------------------------------------------------------- 33,298,501 2,226,195 1,809,289 2,034,742 944,430 3,359,425 164,736 - ----------------------------------------------------------------------------------------------------------------------- (6,345,775) (631,664) (937,043) (535,460) (237,878) (238,196) (180,188) (176,417) (5,053) (5,711) (3,670) (1,330) (1,511) (1,462) (921,379) (291,315) (217,206) (106,583) (159,144) (81,728) (89,091) (63,803) (6,601) (70) -- -- (24,903) (44) - ----------------------------------------------------------------------------------------------------------------------- (7,507,374) (934,633) (1,160,030) (645,713) (398,352) (346,338) (270,785) - ----------------------------------------------------------------------------------------------------------------------- 25,791,127 1,291,562 649,259 1,389,029 546,078 3,013,087 (106,049) 25,807,783 11,777,043 10,006,713 4,533,325 4,506,423 1,588,718 4,464,602 - ----------------------------------------------------------------------------------------------------------------------- 51,598,910 13,068,605 10,655,972 5,922,354 5,052,501 4,601,805 4,358,553 -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------- $51,598,910 $ 13,068,605 $ 10,655,972 $ 5,922,354 $ 5,052,501 $ 4,601,805 $ 4,358,553 =======================================================================================================================
F-8 Witco Corporation Employee Retirement Savings Plan Statement of Changes in Assets Available for Benefits, with Fund Information (Modified Cash Basis) (continued) Year Ended December 31, 1994
Fidelity Fidelity Asset Growth Manager: Guaranteed Dreyfus Company Income Investment Liquid Fund Fund Fund Trust Assets, Inc. --------------------------------------------------------------------------- Additions to assets attributed to: Investment income Gains (losses) on investments Unrealized $ (88,249) $ (50,547) $ -- $ -- Realized (3,109) (2,186) -- -- Interest -- -- -- -- Dividends 98,736 59,918 4,389 -- --------------------------------------------------------------------------- 7,378 7,185 4,389 -- --------------------------------------------------------------------------- Contributions Participants 123,530 32,985 -- -- Employer 44,496 12,045 -- -- --------------------------------------------------------------------------- 168,026 45,030 -- -- --------------------------------------------------------------------------- Transfer from predecessor plan -- -- -- -- Loan repayments (interest and principal) 9,926 5,226 -- -- Other -- -- -- -- --------------------------------------------------------------------------- Total additions 185,330 57,441 4,389 -- --------------------------------------------------------------------------- Deductions from assets attributed to: Withdrawals (123,702) (201,331) (359,528) (432,453) Administrative expenses (357) (565) -- -- Loan withdrawals (63,337) (10,700) -- -- Other (68) -- (9,821) (46,022) --------------------------------------------------------------------------- Total deductions (187,464) (212,596) (369,349) (478,475) --------------------------------------------------------------------------- Net increase (decrease) prior to interfund transfers (2,134) (155,155) (364,960) (478,475) Interfund transfers 2,727,678 1,643,087 (15,171,970) (11,277,787) --------------------------------------------------------------------------- Net increase (decrease) 2,725,544 1,487,932 (15,536,930) (11,756,262) Assets available for benefits at beginning of year -- -- 15,536,930 11,756,262 --------------------------------------------------------------------------- Assets available for benefits at end of year $ 2,725,544 $ 1,487,932 $ -- $ -- ===========================================================================
See notes to financial statements. F-9
Dreyfus Dreyfus Dreyfus Short- Global Growth Intermediate Investing Dreyfus Opportunity Government Fund, Participant Fund, Inc. Fund, Inc. Fund, Inc. Inc. Loans Total - --------------------------------------------------------------------------------------------------- $ 49,297 $ 884,865 $ 94,454 $ (376,983) $ -- $ (5,380,801) (49,297) (884,865) (94,454) 376,983 -- (193,321) -- -- -- -- -- 4,562,856 -- -- -- -- -- 2,051,875 - -------------------------------------------------------------------------------------------------- -- -- -- -- -- 1,040,609 - -------------------------------------------------------------------------------------------------- -- -- -- -- -- 10,669,540 -- -- -- -- -- 4,492,627 - -------------------------------------------------------------------------------------------------- -- -- -- -- -- 15,162,167 - -------------------------------------------------------------------------------------------------- -- -- -- -- 737,632 29,650,974 -- -- -- -- (584,904) 128,671 -- -- -- -- -- 32,974 - -------------------------------------------------------------------------------------------------- -- -- -- -- 152,728 46,015,395 - -------------------------------------------------------------------------------------------------- (152,053) (73,245) (87,242) (53,178) (60,442) (14,134,295) -- -- -- -- -- (208,831) -- -- -- -- 2,560,800 -- (1,748) (3,232) (4,052) (921) -- (165,511) - -------------------------------------------------------------------------------------------------- (153,801) (76,477) (91,294) (54,099) 2,500,358 (14,508,637) - -------------------------------------------------------------------------------------------------- (153,801) (76,477) (91,294) (54,099) 2,653,086 31,506,758 (8,871,255) (5,979,297) (5,956,499) (3,340,771) -- -- - -------------------------------------------------------------------------------------------------- (9,025,056) (6,055,774) (6,047,793) (3,394,870) 2,653,086 31,506,758 9,025,056 6,055,774 6,047,793 3,394,870 -- 97,999,983 - -------------------------------------------------------------------------------------------------- $ -- $ -- $ -- $ -- $ 2,653,086 $ 129,506,741 ==================================================================================================
F-10 Witco Corporation Employee Retirement Savings Plan Notes to Financial Statements Years Ended December 31, 1995 and 1994 1. Significant Accounting Policies Accounting Basis The accompanying financial statements have been prepared on a modified basis of cash receipts and disbursements; consequently, contributions, interest income and the related assets are recognized when received rather than when earned, and certain expenses are recognized when paid rather than when the obligation is incurred. Accordingly, the accompanying financial statements are presented on a comprehensive basis of accounting other than generally accepted accounting principles. Investment Valuation Investments are stated at fair or contract value. The group annuity contract and fully benefit responsive guaranteed investment contracts are valued at contract value. Contract value represents contributions made under the contract, plus interest at the contract rate less withdrawals. Fair value of the other investments is determined by quoted market prices on an active market or redemption values, which approximates market value. Gains/(Losses) The change in the difference between the fair value and the cost of investments is reflected as unrealized gains/(losses) in the aggregate fair value of investments. Realized gains and losses on the disposal of investments are calculated as the difference between the proceeds received and the average cost of investments sold. Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. 2. Description of the Plan The Witco Corporation Employee Retirement Savings Plan ("Plan") is a defined contribution plan established for the purpose of encouraging and assisting eligible employees of Witco Corporation and subsidiary companies ("Witco" or "Company") in following a systematic savings program. Effective January 1, 1994, the Company amended the Plan to incorporate changes in investment options, administrative procedures, and provision enhancements. The investment options, trustee and record keeping responsibilities of the Plan were transferred to Fidelity Investments. The Plan provision enhancements include an employee loan provision, the removal of certain restrictions on withdrawals of employee and company matched funds, the allowance of daily transactions for all of the funds, adoption of the unitization for the Witco Common Stock Fund and certain administrative changes resulting from the conversion to Fidelity Investments. F-11 Witco Corporation Employee Retirement Savings Plan Notes to Financial Statements (continued) 2. Description of the Plan (continued) An employee becomes eligible to participate in the Plan on the first day of the month following 31 days of service. During the period from January 1, 1994 to September 30, 1995, eligible employees could make a basic contribution under the Plan in amounts up to 3% of their base salary with Witco making monthly contributions in an amount equal to 100% of these basic employee contributions except for certain bargaining employees whose participation is based upon terms of their respective collective bargaining agreement. In addition, employees may elect to make voluntary supplemental contributions of 1% to 12% of their base salary except for certain bargaining employees who are limited to 7%. Witco does not make contributions with respect to any portion of the voluntary supplemental contributions. Effective October 1, 1995, the Company amended the Plan to change the Company's matching contribution to 50% of the basic employee contributions up to 6% of their base salary. In addition, employees may elect to make voluntary contributions of 1% to 9% of their base salary. The respective amendments do not impact certain bargaining employees as the terms of their collective bargaining agreement has not changed. Effective December 31, 1993, the Sherex Chemical Company, Inc. Employee Thrift Plan ("Sherex") was merged into the Plan. The assets of the Sherex plan totaling $29,650,974 were transferred to Fidelity Investments and invested in similar funds managed by Fidelity Investments in early 1994. The Sherex participants became subject to the provisions of the Plan as of the effective date for all future contributions. The Plan permits pre-tax and after-tax contributions by participants. Certain bargaining employees are excluded from making after-tax contributions. Participants may direct the pre-tax contributions and after tax contributions, including Company matching contributions, to be invested in one or more of ten funds, excluding the Group Annuity Contract. The ten funds include a Witco Common Stock Fund, and various diversified bond and equity funds as described below. Group Annuity Contract: New York Life Insurance Company - represents an investment in the New York Life Insurance Company Group Annuity Contract, which matured January 3, 1995. These funds were transferred to the Blended Income Fund on January 4, 1995. Witco Common Stock Fund - are investments primarily in Witco company stock, and a portion in money market instruments for liquidity. Blended Income Fund - seeks to preserve capital and provide a competitive level of income over time. It purchases high-quality short- and long-term investment contracts issued by insurance companies (GICs) and banks (BICs), "synthetics" and a short-term money market position to provide liquidity. F-12 Witco Corporation Employee Retirement Savings Plan Notes to Financial Statements (continued) 2. Description of the Plan (continued) Fidelity 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. Fidelity Asset Manager - is an asset allocation fund. It seeks high total return with reduced risk over the long-term by allocating its assets among domestic and foreign equities, bonds and short-term instruments. Fidelity Short-Intermediate Government Fund - is an income fund. It seeks as high a level of current income as is consistent with preservation of principal by investing in U.S. government securities. These funds were transferred into the Fidelity Institutional Short-Intermediate Government Fund in 1995. Fidelity International Growth and Income Fund - seeks capital growth and current income, by investing principally in foreign equity securities. Fidelity Equity Income Fund - is a growth and income fund. It seeks reasonable income with the potential for capital appreciation. The Fund tries to achieve a yield that exceeds the composite yield of the S&P 500. Fidelity Asset Manager: Growth Fund - is an asset allocation fund. It seeks to maximize total return over the long-term by allocating its assets among and across domestic and foreign stocks, bonds, and short-term instruments. Fidelity Growth Company Fund - is a growth fund. It seeks long-term capital appreciation by investing primarily in common stocks and securities convertible into common stocks. Fidelity Asset Manager: Income Fund - is an asset allocation fund. It seeks a high level of current income by allocating its assets among domestic and foreign stocks, bonds, and short-term instruments. Fidelity Institutional Short-Intermediate Government Fund - is an income fund. It seeks a high level of current income consistent with preservation of principal by investing exclusively in U.S. government securities. Prior to transferring participant accounts to Fidelity, the Plan permitted contributions in the following funds: Group Annuity Contracts -- After-tax contributions were invested in group annuity contracts in which payments of principal and interest at a fixed rate are guaranteed by the issuer of each investment contract for a specified period. For group annuity contracts expiring after January 1, 1993, the participants were allowed to transfer their investment to any of the other funds available. Effective January 1, 1993, a Guaranteed Investment Fund Trust (GIFT) replaced the expired group annuity contracts as an investment option for both pre-tax and after-tax contributions. On December 31, 1993, the Metropolitan Life Group Annuity Contract totaling $17,580,530 expired and the assets were temporarily held in an overnight contract until they could be allocated to the participant's choice of funds on January 3, 1994. F-13 Witco Corporation Employee Retirement Savings Plan Notes to Financial Statements (continued) 2. Description of the Plan (continued) Witco Stock Fund-- Contributions are invested solely in Witco Corporation Common Stock. Guaranteed Investment Fund Trust (GIFT) -- is a collective investment fund with a primary objective of high current income and stability of principal. The fund invests primarily in guaranteed investment contracts. The trustee and portfolio manager of the GIFT is LaSalle National Trust. Dreyfus Liquid Assets, Inc.-- is a diversified open-end money market mutual fund managed by Dreyfus. The fund's objective is to provide as high a level of current income as is consistent with the preservation of capital. The fund invests in money market instruments including U.S. Government securities, time deposits, certificates of deposit, banker's acceptances and other short-term corporate obligations. Dreyfus Fund, Inc.-- is a diversified, open-end mutual fund with a primary objective of long term capital appreciation consistent with preservation of capital. The fund invests primarily in common stocks. Dreyfus Growth Opportunity Fund, Inc. -- is a diversified open-end mutual fund that seeks long-term capital growth by investing principally in common stocks of domestic issuers and securities of foreign companies and governments. Dreyfus Short-Intermediate Government Fund, Inc. -- is a fund that offers as high a level of income as is consistent with the preservation of capital. The fund invests in a portfolio of securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities, and repurchase agreements relating to them. Dreyfus Global Investing Fund, Inc. -- is an open-end, nondiversified mutual fund whose goal is capital growth. The fund invests primarily in publicly traded common stocks of foreign and domestic issuers as well as convertible securities, preferred stocks and debt securities. Participants are immediately vested in contributions made by them and become fully vested in the contributions made by Witco after they have completed three consecutive years of participation in the Plan or five years of service to Witco. All former Sherex participants are immediately vested in contributions made by Witco. Participants who have been terminated for reasons beyond their own control become fully vested in Witco's contributions upon their termination. Non-vested contributions by Witco which have been forfeited by participants are applied to reduce future contributions by Witco. Terminated participants whose account balance is at least $3,500 may elect to defer receipt of such amounts until the required distribution date. Employees participating in the Plan will not be subject to federal income tax on amounts contributed to the Plan by Witco and earnings allocated to their accounts until such time that their participating interest in the Plan is distributed to them. The Plan provides that participants may elect to have their pre-tax contributions subject to certain limitations, excluded from taxable income pursuant to Section 401(k) of the Internal Revenue Code. F-14 Witco Corporation Employee Retirement Savings Plan Notes to Financial Statements (continued) 2. Description of the Plan (continued) Employees are permitted to make hardship withdrawals if certain criteria are met. Only one hardship withdrawal a year is permitted. The Plan was amended in 1994 to allow for a loan provision. Employees may borrow up to the lesser of $50,000 or 50% of their vested account balance at an interest rate of 1% above prime. Loan repayments are made automatically through payroll deductions. Witco, by action of its Board of Directors, may suspend the operation of the Plan for any year by omitting all or part of the employer contributions. In addition, Witco may terminate or amend the Plan for any reason, at any time, provided that no such termination or amendment shall permit any of the funds established pursuant to this Plan to be used for any purpose other than the exclusive benefit of the participating employees. Upon termination of the Plan, the rights of members to the benefits accrued under the Plan to the date of termination shall be nonforfeitable. 3. Income Tax Status The Internal Revenue Service ruled that the Plan qualifies under Section 401(k) of the Internal Revenue Code (IRC) and, therefore, the related trust is not subject to tax under present income tax law. Once qualified, the Plan is required to operate in conformity with the IRC to maintain its qualification. The Management Committee of Witco Corporation is not aware of any course of action or series of events that have occurred that might adversely affect the Plan's qualified status. F-15 Witco Corporation Employee Retirement Savings Plan Notes to Financial Statements (continued) 4. Investments The fair value of individual investments that represent 5% or more of the Plan's net assets are as follows:
December 31 1995 1994 ------------ ---------- Witco Common Stock Fund* $12,938,708 $10,238,042 Blended Income Fund: Managed Income Portfolio Fund II 56,964,316 -- Fidelity IPL -- 38,230,612 Fidelity Short Term Investment Fund 1,872,423 1,451,997 Northwestern National Life GIC #GA-21661-5 at 9.05% through March 31, 1995 -- 1,415,100 Northwestern National Life GIC #GA-21646-1 at 8.95% through July 31, 1995 -- 2,575,484 Confederation GIC #62545 at 8.42% through July 31, 1996 1,002,480 1,035,068 Protective Life GIC #GA582 at 8.6% through October 2, 1996 1,020,927 1,531,419 Penn Mutual GIC #GIC-91178 at 8.44% through October 2, 1996 959,171 1,324,877 Ohio National Life GIC #GA5359 at 8.47% through January 7, 1997 1,430,087 1,318,416 Ohio National Life GIC #GA5481 at 6.36% through April 30, 1997 617,452 580,530 Ohio National Life GIC #GA5482 at 6.36% through July 30, 1997 617,452 580,530 Reliance Insurance Fund Reliance Standard Life GIC #270745 at 8.95% through July 31, 1995 -- 1,554,877 ----------- ----------- 64,484,308 51,598,910 Group Annuity Contract: New York Life Insurance Co. Contract #06022 at 8.83% through January 3, 1995 -- 17,143,437 Fidelity Magellan Fund 22,752,970 13,068,605 Fidelity Asset Manager Fund 12,354,038 10,655,972 Fidelity Equity Income Fund 8,811,794 --
*Party-in-interest investment 5. Other In January 1996, the Plan distributed approximately $1,900,000 to participants who withdrew funds or terminated from the Plan at December 31, 1995. F-16 Supplemental Schedules Witco Corporation Employee Retirement Savings Plan Schedule of Assets Held for Investment Purposes December 31, 1995
Shares, Units Or Principal Current Description Amount Cost Value - ---------------------------------------------------------------------------------------------------------------------------------- Witco Common Stock Fund* 1,310,913 $11,119,725 $12,938,708 Blended Income Fund: Managed Income Portfolio Fund II 56,964,316 56,964,316 56,964,316 Fidelity Short Term Investment Fund 1,872,423 1,872,423 1,872,423 Confederation GIC #62545 at 8.42% through July 31, 1996 1,002,480 1,002,480 1,002,480 Protective Life GIC #GA582 at 8.6% through October 2, 1996 1,020,927 1,020,927 1,020,927 Penn Mutual GIC #GIC-91178 at 8.44% through October 2, 1996 959,171 959,171 959,171 Ohio National Life GIC #GA5359 at 8.47% through January 7, 1997 1,430,087 1,430,087 1,430,087 Ohio National Life GIC #GA5481 at 6.36% through April 30, 1997 617,452 617,452 617,452 Ohio National Life GIC #GA5482 at 6.36% through July 30, 1997 617,452 617,452 617,452 ---------- ----------- ----------- 64,484,308 64,484,308 64,484,308 Fidelity Magellan Fund 264,631 19,942,764 22,752,970 Fidelity Asset Manager Fund 779,435 11,647,115 12,354,038 Fidelity International Growth and Income Fund 297,252 5,195,929 5,335,672 Fidelity Equity Income Fund 232,317 7,892,440 8,811,794 Fidelity Asset Manager: Growth Fund 254,170 3,506,253 3,855,765 Fidelity Growth Company Fund 167,577 5,295,576 6,081,371 Fidelity Asset Manager: Income Fund 156,888 1,710,552 1,819,903 Fidelity Institutional Short-Intermediate Government Fund 707,879 6,768,719 6,816,871
*Party-in-interest investment F-17 Witco Corporation Employee Retirement Savings Plan Schedule Of Reportable Transactions Year Ended December 31, 1995 Transactions or series of transactions during the year ended December 31, 1995, exceeding 5% of the current value of Plan assets reportable per Department of Labor regulations 2520.103-6 are listed below. A series of transactions may include single transactions that are in excess of 5% of the current value of Plan assets reportable per Department of Labor regulations. There were no category (ii) or (iv) reportable transactions during 1995.
Number Aggregate Number Aggregate of Value of of Value of Cost of Description Purchase Purchases/ Sales Sales/ Sales/ Gain Identity of Party Involved of Asset Transactions Deposits* Transactions Withdrawals* Withdrawals (Loss) - --------------------------------------- ----------- ------------ ----------- ------------ ------------ ----------- ------ Category (i)--Individual transaction in excess of 5% of plan assets: Blended Income Fund GIC Fund 1 $17,099,471 $ -- $ -- $ -- $ -- Fidelity Short-Intermediate Government Fund Mutual Fund -- -- 1 6,581,266 6,581,266 -- New York Life Fund Mutual Fund -- -- 1 17,099,471 17,099,471 -- Fidelity Institutional Short-Intermediate Government Fund Mutual Fund 1 $6,581,266 -- -- -- --
*Current value at date of transaction. F-18 Witco Corporation Employee Retirement Savings Plan Schedule Of Reportable Transactions Year Ended December 31, 1995 Transactions or series of transactions during the year ended December 31, 1995, exceeding 5% of the current value of Plan assets reportable per Department of Labor regulations 2520.103-6 are listed below. A series of transactions may include single transactions that are in excess of 5% of the current value of Plan assets reportable per Department of Labor regulations.
Number Aggregate Number Aggregate of Value of of Value of Cost of Description Purchase Purchases/ Sales Sales/ Sales/ Gain Identity of Party Involved of Asset Transactions Deposits* Transactions Withdrawals Withdrawals (Loss) - --------------------------------------- ----------- ------------ ----------- ------------ ------------ ----------- ------ Category (iii)--Series of transactions in excess of 5% of plan assets: Blended Income Fund GIC Fund 531 $81,687,213 773 $85,945,252 $85,945,252 $ -- Witco Common Stock Fund Stock Fund 247 4,403,809 232 4,165,045 3,526,898 638,147 Fidelity Magellan Fund Mutual Fund 245 10,073,335 225 4,222,027 3,781,896 440,131 Fidelity Short-Intermediate Government Fund Mutual Fund 175 1,725,236 162 7,890,328 7,991,735 (101,407) Fidelity Institutional Short-Intermediate Government Fund Mutual Fund 51 7,067,794 47 299,894 299,075 819
* Current value at date of transaction. F-19 EX-23 2 CONSENT OF INDEPENDENT AUDITORS Exhibit 23 CONSENT OF INDEPENDENT AUDITORS We consent to the incorporation by reference in the Registration Statement (Form S-8, No. 33-48806) pertaining to the Witco Corporation Employee Retirement Savings Plan of our report dated June 24, 1996, with respect to the financial statements and schedules of the Witco Corporation Employee Retirement Savings Plan included in this Annual Report (Form 11-K) for the year ended December 31, 1995. /s/ ERNST & YOUNG LLP Stamford, Connecticut June 24, 1996 -----END PRIVACY-ENHANCED MESSAGE-----