-----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, FqD5UEEu9daAc98ueI6QVzJyhpEa5k2CAJRTgBpRM7O+HZhHwnNF76ZcpGT+wmz2 iUxk96bUWovnEHZmchnSzw== 0000950129-96-001278.txt : 19960621 0000950129-96-001278.hdr.sgml : 19960621 ACCESSION NUMBER: 0000950129-96-001278 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960620 SROS: CSE SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BROWNING FERRIS INDUSTRIES INC CENTRAL INDEX KEY: 0000014827 STANDARD INDUSTRIAL CLASSIFICATION: REFUSE SYSTEMS [4953] IRS NUMBER: 741673682 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06805 FILM NUMBER: 96583545 BUSINESS ADDRESS: STREET 1: 757 N ELDRIDGE CITY: HOUSTON STATE: TX ZIP: 77079 BUSINESS PHONE: 7138708100 11-K 1 BROWNING-FERRIS INDUSTRIES, INC. DATED 12/31/95 1 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 [FEE REQUIRED] For the fiscal year ended December 31, 1995 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] For the transition period from ____________ to ____________ Commission file number 1-6805 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: BFI Employee Stock Ownership and Savings Plan (the "Plan") B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: Browning-Ferris Industries, Inc., a Delaware corporation 757 N. Eldridge Houston, Texas 77079 2 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Benefits Administration Committee of the BFI Employee Stock Ownership and Savings Plan: We have audited the accompanying statements of net assets available for benefits of the BFI Employee Stock Ownership and Savings Plan as of December 31, 1995 and 1994, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements and the schedules referred to below are the responsibility of the Plan Administrator. 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 benefits of the BFI Employee Stock Ownership and Savings Plan as of December 31, 1995 and 1994, and the changes in its net assets available for benefits for the years then ended in conformity with generally accepted accounting principles. Our audits were made 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 as of December 31, 1995 and reportable transactions for the year ended December 31, 1995 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 supplemental schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. ARTHUR ANDERSEN LLP Houston, Texas June 20, 1996 -2- 3 BFI EMPLOYEE STOCK OWNERSHIP AND SAVINGS PLAN STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS - ----------------------------------------------------------------- December 31, ------------------------------ 1995 1994 ------------- ------------ ASSETS: Investments, at fair value - Common stock of Browning-Ferris Industries, Inc. $100,499,553 $ 87,635,287 Equity investment funds 111,841,460 75,180,548 Other investments 2,159,729 272,123 ------------ ------------ 214,500,742 163,087,958 Investments, at contract value - Guaranteed investment contracts 46,497,123 46,666,648 Other investment contracts 5,107,006 -- ------------ ------------ 266,104,871 209,754,606 ------------ ------------ Receivables - Employer contribution 983,793 1,236,362 Employee contributions 2,867,186 3,515,250 Dividends receivable 580,392 526,355 ------------ ------------ 4,431,371 5,277,967 ------------ ------------ 270,536,242 215,032,573 ------------ ------------ LIABILITIES: Accrued expenses 68,828 103,247 ------------ ------------ NET ASSETS AVAILABLE FOR BENEFITS $270,467,414 $214,929,326 ============ ============ The accompanying notes are an integral part of these financial statements. -3- 4 BFI EMPLOYEE STOCK OWNERSHIP AND SAVINGS PLAN STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS - ------------------------------------------------------------------ December 31, ------------------------------ 1995 1994 ------------ ------------ ADDITIONS TO NET ASSETS ATTRIBUTED TO: Investment income - Net appreciation in fair value of investments $ 21,554,215 $ 2,145,663 Interest income 3,316,942 2,874,198 Dividends on common stock of Browning-Ferris Industries, Inc. 2,257,672 2,016,375 Dividends and gain distributions on equity investment funds 5,001,087 3,674,606 ------------ ------------ 32,129,916 10,710,842 ------------ ------------ Contributions - Employer 10,886,898 9,728,505 Employee 33,826,941 28,779,643 ------------ ------------ 44,713,839 38,508,148 ------------ ------------ Total additions 76,843,755 49,218,990 ------------ ------------ DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO: Distributions to participants 21,064,025 17,389,177 Administrative expenses 241,642 297,765 ------------ ------------ Total deductions 21,305,667 17,686,942 ------------ ------------ Net increase 55,538,088 31,532,048 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 214,929,326 183,397,278 ------------ ------------ End of year $270,467,414 $214,929,326 ============ ============ The accompanying notes are an integral part of these financial statements. -4- 5 BFI EMPLOYEE STOCK OWNERSHIP AND SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS (1) Description of the Plan - - ---------------------------- Organization and administration - Browning-Ferris Industries, Inc. ("the Company") established the BFI Employee Stock Ownership and Savings Plan ("the Plan") effective January 1, 1980. The Plan is a defined contribution plan covering all United States and certain expatriate personnel of the Company with one or more years of service, except certain employees subject to collective bargaining agreements. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"), as amended. Management of the Plan is provided by the Benefits Administration Committee ("the Plan Administrator"), which is currently composed of six members, all of whom are management employees of the Company. Members of the Plan Administrator do not receive any compensation from the Plan. Fees charged by the trustee and certain other expenses are reflected in the accompanying financial statements. Certain other costs associated with internal administration are paid by the Company and are not charged to the Plan. Fidelity Management Trust Company ("Fidelity") is the sole trustee of the Plan's assets under a trust agreement dated April 12, 1993. Amendments - Effective December 30, 1994, the Plan was amended and restated in its entirety to incorporate amendments dated June 12, 1985 through September 7, 1993, dealing with, among other matters, compliance with the Tax Reform Act of 1986, subsequent legislation and various regulations and rulings issued by government agencies thereon. There were no other significant amendments to the Plan during the period January 1, 1994 through December 31, 1995. Investment programs - The following details the investment options available to each Plan participant: Fund 1 Guaranteed Investment Contract Fund Fund 2 Fidelity Balanced Fund Fund 3 Fidelity Growth and Income Portfolio Fund 4 Fidelity Growth Company Fund Fund 5 BFI Common Stock Participants may currently invest their contributions in any or all of the five funds in increments of five percent; however, no -5- 6 more than twenty-five percent of a participant's contributions can be invested in Fund 5. A participant may contribute up to five percent of his total earnings as a "Basic Contribution" and up to an additional ten percent as a "Supplemental Contribution" subject to Internal Revenue Service ("IRS") limitations. The Company's matching contributions (defined as fifty percent of the Basic Contribution subject to IRS limitations) are invested in Fund 5. Participants can change the allocation of their savings contributions in these five funds not more than once monthly, or they can discontinue, increase, or decrease their savings participation rate within the 1 to 15 percent contribution levels permitted by the Plan, by giving at least thirty (30) days written notice, prior to the end of a calendar quarter. Participant accounts - Each participant's account is credited with the participant's contribution, the Company's matching contribution and allocation of Plan earnings. Plan earnings are allocated by fund in proportion to the participant's balances in each fund. Administrative expenses are allocated equally to each participant. Vesting - Participants are fully vested in all amounts reflected in their accounts. Distribution of benefits - Benefits are payable to participants or to a designated beneficiary only at the time of their retirement, death or termination of employment. In limited circumstances, account withdrawals may be made for financial hardship in accordance with IRS guidelines for such withdrawals. Distribution of a participant's account balance depends largely on the value of the account and the Fund from which the distribution is paid. If the account balance is $3,500 or less, the distribution is lump-sum cash. If the account balance is greater than $3,500, the participant has the option to defer receipt in accordance with the Plan or take a lump-sum cash payment. In either case, with certain requirements, the participant may elect to roll all or a portion of such distribution to a qualified retirement plan. In addition, Funds 1 through 4 are distributed in cash only, and are based on the account balances as of the date the distribution is processed. For Fund 5, the participant determines whether the form of distribution will be either the shares of the Company's common stock with uninvested amounts in cash or in a lump-sum cash distribution. The market value of the Company's common stock at the date the shares are sold for cash is used to determine the amount of the distribution. The amount allocated to accounts of participants who have withdrawn from participation in the earnings and operations of the Plan for the Plan years ended December 31, 1995 and 1994 was less than 2% of net assets available for benefits for each of the two years. -6- 7 The Company may terminate the Plan at any time by appropriate resolution of its board of directors. If the Plan is so terminated, all amounts credited to the accounts of each participant shall be paid after payment of all appropriate expenses. (2) Summary of significant accounting policies - - ----------------------------------------------- The assets of the Plan are reflected at quoted market value, if available. Investments that have no quoted market price are shown at cost which approximates estimated market value. Investments in guaranteed and other investment contracts are reported at contract value. The financial statements are presented on the accrual basis whereby interest and dividend income are recognized as earned and expenses are recorded as incurred. (3) Guaranteed and other investment contracts - - ---------------------------------------------- Investments in guaranteed and other investment contracts are fully benefit-responsive, and therefore, are reported at contract value which represents the principal balance of the investment contracts plus accrued interest at the stated contract rate (the crediting interest rate), less payments received and contract charges by the insurance company. A fully benefit-responsive investment contract provides a liquidity guarantee by a financially responsible third party of principal and previously accrued interest for liquidations, transfers, loans or hardship withdrawals initiated by Plan participants under terms of the ongoing Plan. The fair value of these investments was $53,254,053 and $45,672,141 as of December 31, 1995 and 1994, respectively. The crediting interest rate for the guaranteed investment contracts is established at the time of the purchase of the contract and does not vary throughout the duration of the contract. The crediting interest rate of the other investment contracts is reset on a quarterly basis based upon the terms of the contract and the performance of the underlying assets; however, the minimum crediting interest rate is zero under these contracts. As of December 31, 1995 and 1994, the crediting interest rate for the Guaranteed Investment Contract Fund was 6.46% and 6.45%, respectively. The average yields of this fund were 6.76% and 6.81% for the years ended December 31, 1995 and 1994, respectively. There are limitations on returns of certain of the guaranteed and other investment contracts upon certain changes to the Plan's provisions or upon the termination or partial termination of the investment contracts by the Company or Fidelity. (4) Federal income taxes - - ------------------------- The Plan obtained its latest determination letter on October 7, 1988, in which the IRS stated that the Plan, as then designed, was in compliance with the applicable requirements of the IRS Code. Although the Plan has been amended since receiving the -7- 8 determination letter, the Plan Administrator believes that the Plan is currently designed and being operated in compliance with the applicable requirements of the IRS Code and that the Plan is qualified and the related trust is tax-exempt. Neither the Company's contributions nor the income of the trust fund are taxable to the participants prior to distribution. (5) Investments - - ---------------- Investments that represent 5% or more of the Plan's net assets are separately identified in the following table. ------------------------------------------------- December 31, 1995 December 31, 1994 ------------------------------------------------- Number of Number of Shares Fair Value/ Shares Fair Value/ or Contract or Contract Units Value Units Value ----------------------- ----------------------- Common Stock of Browning-Ferris Industries, Inc. 3,421,261 $100,499,553 3,088,468 $ 87,635,287 ------------ ------------ Equity Investment Funds - Fidelity Growth and Income Portfolio 1,657,124 44,825,201 1,362,280 28,730,491 Fidelity Balanced Fund 2,169,317 29,329,172 1,979,803 24,331,779 Fidelity Growth Company Fund 1,038,498 37,687,087 811,382 22,118,278 ------------ ------------ 111,841,460 75,180,548 ------------ ------------ Short Term Investment Funds 2,159,729 272,123 ------------ ------------ Guaranteed Investment Contracts 46,497,123 46,666,648 ------------ ------------ Other Investment Contracts 5,107,006 -- ------------ ------------ Total $266,104,871 $209,754,606 ============ ============ -8- 9 During 1995 and 1994, the Plan's investments (including investments bought, sold and held during the year) appreciated (depreciated) in value as follows: ------------------------------ 1995 1994 ------------ ------------ Common Stock of Browning-Ferris Industries, Inc. $ 2,274,127 $ 6,997,699 Equity Investment Funds 19,280,088 (4,852,036) ----------- ----------- Net Appreciation $21,554,215 $ 2,145,663 =========== =========== (6) Reconciliation of Financial Statements to IRS Form 5500 - - -------------------------------------------------------------- The following is a reconciliation of net assets available for benefits per the financial statements to the IRS Form 5500 as of December 31, 1995: Net assets available for benefits per the financial statements $270,467,414 Difference between fair value and contract value of investment contracts 1,649,924 ------------ Net assets available for benefits per the IRS Form 5500 $272,117,338 ============ -9- 10 (7) Allocation to investment programs - - ---------------------------------------- The following schedules reflect the allocation of net assets available for benefits and changes in net assets available for benefits to the separate investment programs for the respective periods: - ---------------------------------------------------------------------------- ALLOCATION OF NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS DECEMBER 31, 1995 - ---------------------------------------------------------------------------- Fund 1 Fund 3 Guaranteed Fund 2 Fidelity Investment Fidelity Growth and Contract Balanced Income Fund Fund Portfolio - ---------------------------------------------------------------------------- ASSETS: Investments, at fair value - Common stock of Browning- Ferris Industries, Inc. $ -- $ -- $ -- Equity investment funds -- 29,329,172 44,825,201 Other investments 2,159,729 -- -- ----------- ----------- ----------- 2,159,729 29,329,172 44,825,201 Investments, at contract value - Guaranteed investment contracts 46,497,123 -- -- Other investment contracts 5,107,006 -- -- ----------- ----------- ----------- 53,763,858 29,329,172 44,825,201 ----------- ----------- ----------- Receivables - Employer contribution -- -- -- Employee contributions 679,067 418,867 646,352 Dividends receivable -- -- -- ----------- ----------- ----------- 679,067 418,867 646,352 ----------- ----------- ----------- 54,442,925 29,748,039 45,471,553 ----------- ----------- ----------- LIABILITIES: Accrued expenses 54,644 6,471 4,969 ----------- ----------- ----------- NET ASSETS AVAILABLE FOR BENEFITS $54,388,281 $29,741,568 $45,466,584 =========== =========== =========== (Remaining Funds and Total on following page.) -10- 11 - ---------------------------------------------------------------------------- ALLOCATION OF NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS DECEMBER 31, 1995 (Continued) - ---------------------------------------------------------------------------- Fund 4 Fidelity Fund 5 Growth BFI Company Common Fund Stock (A) Total - ---------------------------------------------------------------------------- ASSETS: Investments, at fair value - Common stock of Browning- Ferris Industries, Inc. $ -- $100,499,553 $100,499,553 Equity investment funds 37,687,087 -- 111,841,460 Other investments -- -- 2,159,729 ----------- ------------ ------------ 37,687,087 100,499,553 214,500,742 Investments, at contract value - Guaranteed investment contracts -- -- 46,497,123 Other investment contracts -- -- 5,107,006 ----------- ------------ ------------ 37,687,087 100,499,553 266,104,871 ----------- ------------ ------------ Receivables - Employer contribution -- 983,793 983,793 Employee contributions 637,578 485,322 2,867,186 Dividends receivable -- 580,392 580,392 ----------- ------------ ------------ 637,578 2,049,507 4,431,371 ----------- ------------ ------------ 38,324,665 102,549,060 270,536,242 ----------- ------------ ------------ LIABILITIES: Accrued expenses 1,784 960 68,828 ----------- ------------ ------------ NET ASSETS AVAILABLE FOR BENEFITS $38,322,881 $102,548,100 $270,467,414 =========== ============ ============ ((A) on following page) -11- 12 - ---------------------------------------------------------------------------- ALLOCATION OF NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS DECEMBER 31, 1995 (Continued) - ---------------------------------------------------------------------------- (A) The following table separately identifies participant-directed and non participant-directed Net Assets Available for Benefits of Fund 5: Non Participant- Participant- Directed Directed Total ------------ ------------ ------------ ASSETS: Common stock of Browning- Ferris Industries, Inc. $34,899,622 $65,599,931 $100,499,553 Contributions receivable 485,322 983,793 1,469,115 Dividends receivable 202,075 378,317 580,392 ----------- ----------- ------------ 35,587,019 66,962,041 102,549,060 ----------- ----------- ------------ LIABILITIES: Accrued expenses 960 -- 960 ----------- ----------- ------------ NET ASSETS AVAILABLE FOR BENEFITS (Fund 5) $35,586,059 $66,962,041 $102,548,100 =========== =========== ============ -12- 13 - --------------------------------------------------------------------------- ALLOCATION OF NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS DECEMBER 31, 1994 - ---------------------------------------------------------------------------- Fund 1 Fund 3 Guaranteed Fund 2 Fidelity Investment Fidelity Growth and Contract Balanced Income Fund Fund Portfolio - ---------------------------------------------------------------------------- ASSETS: Investments, at fair value - Common stock of Browning- Ferris Industries, Inc. $ -- $ -- $ -- Equity investment funds -- 24,331,779 28,730,491 Other investments 272,123 -- -- ----------- ----------- ----------- 272,123 24,331,779 28,730,491 Investments, at contract value - Guaranteed investment contracts 46,666,648 -- -- ----------- ----------- ----------- 46,938,771 24,331,779 28,730,491 ----------- ----------- ----------- Receivables - Employer contribution -- -- -- Employee contributions 962,900 571,873 738,358 Dividends receivable -- -- -- ----------- ----------- ----------- 962,900 571,873 738,358 ----------- ----------- ----------- 47,901,671 24,903,652 29,468,849 ----------- ----------- ----------- LIABILITIES: Accrued expenses 74,338 14,455 9,292 ----------- ----------- ----------- NET ASSETS AVAILABLE FOR BENEFITS $47,827,333 $24,889,197 $29,459,557 =========== =========== =========== (Remaining Funds and Total on following page.) -13- 14 - ---------------------------------------------------------------------------- ALLOCATION OF NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS DECEMBER 31, 1994 (Continued) - ---------------------------------------------------------------------------- Fund 4 Fidelity Fund 5 Growth BFI Company Common Fund Stock (A) Total - ---------------------------------------------------------------------------- ASSETS: Investments, at fair value - Common stock of Browning- Ferris Industries, Inc. $ -- $87,635,287 $ 87,635,287 Equity investment funds 22,118,278 -- 75,180,548 Other investments -- -- 272,123 ----------- ----------- ------------ 22,118,278 87,635,287 163,087,958 Investments, at contract value - Guaranteed investment contracts -- -- 46,666,648 ----------- ----------- ------------ 22,118,278 87,635,287 209,754,606 ----------- ----------- ------------ Receivables - Employer contribution -- 1,236,362 1,236,362 Employee contributions 630,943 611,176 3,515,250 Dividends receivable -- 526,355 526,355 ----------- ----------- ------------ 630,943 2,373,893 5,277,967 ----------- ----------- ------------ 22,749,221 90,009,180 215,032,573 ----------- ----------- ------------ LIABILITIES: Accrued expenses 3,097 2,065 103,247 ----------- ----------- ------------ NET ASSETS AVAILABLE FOR BENEFITS $22,746,124 $90,007,115 $214,929,326 =========== =========== ============ ((A) on following page) -14- 15 - --------------------------------------------------------------------------- ALLOCATION OF NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS DECEMBER 31, 1994 (Continued) - ---------------------------------------------------------------------------- (A) The following table separately identifies participant-directed and non participant-directed Net Assets Available for Benefits of Fund 5: Non Participant- Participant- Directed Directed Total ------------ ------------ ----------- ASSETS: Common stock of Browning- Ferris Industries, Inc. $31,085,546 $56,549,741 $87,635,287 Contributions receivable 611,176 1,236,362 1,847,538 Dividends receivable 186,610 339,745 526,355 ----------- ----------- ----------- 31,883,332 58,125,848 90,009,180 ----------- ----------- ----------- LIABILITIES: Accrued expenses 2,065 -- 2,065 ----------- ----------- ----------- NET ASSETS AVAILABLE FOR BENEFITS (Fund 5) $31,881,267 $58,125,848 $90,007,115 =========== =========== =========== -15- 16 - --------------------------------------------------------------------------- ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS YEAR ENDED DECEMBER 31, 1995 - ---------------------------------------------------------------------------- Fund 1 Fund 3 Guaranteed Fund 2 Fidelity Investment Fidelity Growth and Contract Balanced Income Fund Fund Portfolio - ---------------------------------------------------------------------------- ADDITIONS TO NET ASSETS ATTRIBUTED TO: Investment income - Net appreciation (depreciation) in fair value of investments $ -- $ 2,545,906 $ 8,932,314 Interest income 3,316,942 -- -- Dividends on common stock of Browning-Ferris Industries, Inc. -- -- -- Dividends & gain distributions on equity investments -- 1,181,148 2,125,182 ----------- ----------- ----------- 3,316,942 3,727,054 11,057,496 ----------- ----------- ----------- Contributions - Employer -- -- -- Employee 9,652,974 5,075,921 6,961,129 ----------- ----------- ----------- 9,652,974 5,075,921 6,961,129 ----------- ----------- ----------- Total additions 12,969,916 8,802,975 18,018,625 ----------- ----------- ----------- DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO: Distributions to participants 5,816,523 2,280,085 2,718,736 Administrative expenses 173,490 30,645 22,233 ----------- ----------- ----------- Total deductions 5,990,013 2,310,730 2,740,969 ----------- ----------- ----------- TRANSFERS BETWEEN FUNDS (418,955) (1,639,874) 729,371 ----------- ----------- ----------- Net increase 6,560,948 4,852,371 16,007,027 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 47,827,333 24,889,197 29,459,557 ----------- ----------- ----------- End of year $54,388,281 $29,741,568 $45,466,584 =========== =========== =========== (Remaining Funds and Total on following page.) -16- 17 - ---------------------------------------------------------------------------- ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS YEAR ENDED DECEMBER 31, 1995 (Continued) - --------------------------------------------------------------------------- Fund 4 Fidelity Fund 5 Growth BFI Company Common Fund Stock (A) Total - ---------------------------------------------------------------------------- ADDITIONS TO NET ASSETS ATTRIBUTED TO: Investment income - Net appreciation (depreciation) in fair value of investments $ 7,801,868 $ 2,274,127 $ 21,554,215 Interest income -- -- 3,316,942 Dividends on common stock of Browning-Ferris Industries, Inc. -- 2,257,672 2,257,672 Dividends & gain distributions on equity investments 1,694,757 -- 5,001,087 ----------- ------------ ------------ 9,496,625 4,531,799 32,129,916 ----------- ------------ ------------ Contributions - Employer -- 10,886,898 10,886,898 Employee 6,480,673 5,656,244 33,826,941 ----------- ------------ ------------ 6,480,673 16,543,142 44,713,839 ----------- ------------ ------------ Total additions 15,977,298 21,074,941 76,843,755 ----------- ------------ ------------ DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO: Distributions to participants 2,266,657 7,982,024 21,064,025 Administrative expenses 8,049 7,225 241,642 ----------- ------------ ------------ Total deductions 2,274,706 7,989,249 21,305,667 ----------- ------------ ------------ TRANSFERS BETWEEN FUNDS 1,874,165 (544,707) -- ----------- ------------ ------------ Net increase 15,576,757 12,540,985 55,538,088 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 22,746,124 90,007,115 214,929,326 ----------- ------------ ------------ End of year $38,322,881 $102,548,100 $270,467,414 =========== ============ ============ ((A) on following page) -17- 18 - --------------------------------------------------------------------------- ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS YEAR ENDED DECEMBER 31, 1995 (Continued) - --------------------------------------------------------------------------- (A) The following table separately identifies participant-directed and non participant-directed Changes in Net Assets Available for Benefits of Fund 5: Non Participant- Participant- Directed Directed Total ------------ ------------ ----------- ADDITIONS TO NET ASSETS ATTRIBUTED TO: Investment income - Net appreciation in fair value of investments $ 907,167 $ 1,366,960 $ 2,274,127 Dividends on common stock of Browning-Ferris Industries, Inc. 790,038 1,467,634 2,257,672 ----------- ----------- ------------ 1,697,205 2,834,594 4,531,799 ----------- ----------- ------------ Contributions 5,656,244 10,886,898 16,543,142 ----------- ----------- ------------ Total additions 7,353,449 13,721,492 21,074,941 ----------- ----------- ------------ DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO: Distributions to participants 3,101,571 4,880,453 7,982,024 Administrative expenses 2,379 4,846 7,225 ----------- ----------- ------------ Total deductions 3,103,950 4,885,299 7,989,249 ----------- ----------- ------------ TRANSFERS BETWEEN FUNDS (544,707) -- (544,707) ----------- ----------- ------------ Net increase 3,704,792 8,836,193 12,540,985 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 31,881,267 58,125,848 90,007,115 ----------- ----------- ------------ End of year $35,586,059 $66,962,041 $102,548,100 =========== =========== ============ -18- 19 - --------------------------------------------------------------------------- ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS YEAR ENDED DECEMBER 31, 1994 - ---------------------------------------------------------------------------- Fund 1 Fund 3 Guaranteed Fund 2 Fidelity Investment Fidelity Growth and Contract Balanced Income Fund Fund Portfolio - ---------------------------------------------------------------------------- ADDITIONS TO NET ASSETS ATTRIBUTED TO: Investment income - Net appreciation (depreciation) in fair value of investments $ -- $(2,066,662) $(1,456,527) Interest income 2,874,198 -- -- Dividends on common stock of Browning-Ferris Industries, Inc. -- -- -- Dividends & gain distributions on equity investments -- 759,392 2,045,885 ----------- ----------- ----------- 2,874,198 (1,307,270) 589,358 ----------- ----------- ----------- Contributions - Employer -- -- -- Employee 8,429,379 4,717,517 5,672,027 ----------- ----------- ----------- 8,429,379 4,717,517 5,672,027 ----------- ----------- ----------- Total additions 11,303,577 3,410,247 6,261,385 ----------- ----------- ----------- DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO: Distributions to participants 4,766,348 2,248,528 1,985,071 Administrative expenses 218,537 41,588 25,761 ----------- ----------- ----------- Total deductions 4,984,885 2,290,116 2,010,832 ----------- ----------- ----------- TRANSFERS BETWEEN FUNDS 77,197 (351,023) 189,865 ----------- ----------- ----------- Net increase 6,395,889 769,108 4,440,418 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 41,431,444 24,120,089 25,019,139 ----------- ----------- ----------- End of year $47,827,333 $24,889,197 $29,459,557 =========== =========== =========== (Remaining Funds and Total on following page.) -19- 20 - --------------------------------------------------------------------------- ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS YEAR ENDED DECEMBER 31, 1994 (Continued) - --------------------------------------------------------------------------- Fund 4 Fidelity Fund 5 Growth BFI Company Common Fund Stock (A) Total - ---------------------------------------------------------------------------- ADDITIONS TO NET ASSETS ATTRIBUTED TO: Investment income - Net appreciation (depreciation) in fair value of investments $(1,328,847) $ 6,997,699 $ 2,145,663 Interest income -- -- 2,874,198 Dividends on common stock of Browning-Ferris Industries, Inc. -- 2,016,375 2,016,375 Dividends & gain distributions on equity investments 869,329 -- 3,674,606 ----------- ----------- ------------ (459,518) 9,014,074 10,710,842 ----------- ----------- ------------ Contributions - Employer -- 9,728,505 9,728,505 Employee 4,996,447 4,964,273 28,779,643 ----------- ----------- ------------ 4,996,447 14,692,778 38,508,148 ----------- ----------- ------------ Total additions 4,536,929 23,706,852 49,218,990 ----------- ----------- ------------ DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO: Distributions to participants 1,539,629 6,849,601 17,389,177 Administrative expenses 9,052 2,827 297,765 ----------- ----------- ------------ Total deductions 1,548,681 6,852,428 17,686,942 ----------- ----------- ------------ TRANSFERS BETWEEN FUNDS 347,895 (263,934) -- ----------- ----------- ------------ Net increase 3,336,143 16,590,490 31,532,048 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 19,409,981 73,416,625 183,397,278 ----------- ----------- ------------ End of year $22,746,124 $90,007,115 $214,929,326 =========== =========== ============ ((A) on following page) -20- 21 - --------------------------------------------------------------------------- ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS YEAR ENDED DECEMBER 31, 1994 (Continued) - --------------------------------------------------------------------------- (A) The following table separately identifies participant-directed and non participant-directed Changes in Net Assets Available for Benefits of Fund 5: Non Participant- Participant- Directed Directed Total ------------ ------------ ----------- ADDITIONS TO NET ASSETS ATTRIBUTED TO: Investment income - Net appreciation in fair value of investments $ 2,582,557 $ 4,415,142 $ 6,997,699 Dividends on common stock of Browning-Ferris Industries, Inc. 720,305 1,296,070 2,016,375 ----------- ----------- ----------- 3,302,862 5,711,212 9,014,074 ----------- ----------- ----------- Contributions 4,964,273 9,728,505 14,692,778 ----------- ----------- ----------- Total additions 8,267,135 15,439,717 23,706,852 ----------- ----------- ----------- DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO: Distributions to participants 2,837,766 4,011,835 6,849,601 Administrative expenses 2,207 620 2,827 ----------- ----------- ----------- Total deductions 2,839,973 4,012,455 6,852,428 ----------- ----------- ----------- TRANSFERS BETWEEN FUNDS (263,934) -- (263,934) ----------- ----------- ----------- Net increase 5,163,228 11,427,262 16,590,490 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 26,718,039 46,698,586 73,416,625 ----------- ----------- ----------- End of year $31,881,267 $58,125,848 $90,007,115 =========== =========== =========== -21- 22 SCHEDULE I ---------- BFI EMPLOYEE STOCK OWNERSHIP AND SAVINGS PLAN SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1995 - ----------------------------------------------------------------------------- Number of Cost/ Shares or Contract Current Identity of Issue/Description Units Value Value - ---------------------------------------------------------------------------- Common Stock of Browning-Ferris Industries, Inc. * 3,421,261 $ 85,222,264 $100,499,553 ------------ ------------ Equity Investment Funds: Fidelity Growth and Income Portfolio * 1,657,124 36,139,090 44,825,201 Fidelity Balanced Fund * 2,169,317 27,656,893 29,329,172 Fidelity Growth Company Fund * 1,038,498 30,894,102 37,687,087 ------------ ------------ Total Equity Investment Funds 94,690,085 111,841,460 ------------ ------------ Guaranteed Investment Contracts (a): Protective Life GIC, 01/31/98, 7.58% 2,457,334 2,564,160 CNA Insurance Company GIC, 01/31/98, 7.59% 3,266,045 3,402,001 Metropolitan Life Insurance GIC, 04/30/96, 8.10% 3,597,060 3,629,106 Pacific Mutual Life Insurance GIC, 08/29/97, 6.32% 2,459,357 2,496,341 Lincoln National Life Insurance GIC, 04/30/97, 6.55% 3,666,075 3,723,495 Peoples Security Life GIC, 04/30/98, 4.60% 2,204,038 2,165,916 Provident Life GIC, 04/30/98, 4.59% 1,990,147 1,940,212 Sun Life of Canada GIC, 01/31/98, 5.72% 3,417,796 3,445,679 John Hancock Mutual GIC, 03/31/99, 7.68% 4,022,187 4,300,449 Combined Insurance GIC, 07/30/98, 7.76% 3,545,491 3,752,767 New York Life GIC, 07/30/99, 7.13% 5,234,435 5,535,452 Principal Mutual GIC, 01/31/2000, 7.15% 3,783,628 4,019,955 Safeco Life Insurance GIC, 10/30/98, 6.18% 2,724,946 2,775,653 Sunamerica Life Insurance GIC, 07/30/97, 7.00% 2,615,184 2,675,390 Transamerican Life & Annuity GIC, 01/31/2000, 6.08% 1,513,400 1,539,343 ------------ ------------ Total Guaranteed Investment Contracts 46,497,123 47,965,919 ------------ ------------ -22- 23 SCHEDULE I ---------- BFI EMPLOYEE STOCK OWNERSHIP AND SAVINGS PLAN SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1995 (Continued) - ----------------------------------------------------------------------------- Number of Cost/ Shares or Contract Current Identity of Issue/Description Units Value Value - ---------------------------------------------------------------------------- Other Investment Contracts (a): Peoples Security Life Asset Backed Security, 07/07/98 2,712,898 2,798,037 Peoples Security Life Mortgage Backed Security, 11/15/2000 2,394,108 2,490,097 ------------ ------------ 5,107,006 5,288,134 ------------ ------------ Other Investments: Fidelity Short Term Investment Fund * 2,159,729 2,159,729 ------------ ------------ Total Assets Held for Investment Purposes $233,676,207 $267,754,795 ============ ============ * Party in Interest (a) These amounts are recorded at contract value in the accompanying financial statements. -23- 24 SCHEDULE II ----------- BFI EMPLOYEE STOCK OWNERSHIP AND SAVINGS PLAN SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1995 The following table presents series of transactions which were greater than 5% of the Plan's assets as of January 1, 1995: Purchase Selling Cost of Description Price *(a) Price * (a) Asset Net Gain - ----------- ----------- ----------- ----------- ----------- Common Stock of Browning-Ferris Industries, Inc. $21,008,041 $10,417,821 $ 8,210,031 $2,207,790 Fidelity Balanced Fund 6,711,212 4,259,726 4,180,223 79,503 Fidelity Growth and Income Portfolio 11,209,630 4,047,234 3,577,878 469,356 Fidelity Growth Company Fund 10,907,786 3,140,846 2,735,218 405,628 Fidelity Short Term Investment Fund 33,974,742 32,148,686 32,148,686 -- * Expenses incurred are netted against purchase/selling price, as applicable. (a) Amounts represent current value at the date of transaction. -24- 25 CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS As independent public accountants, we hereby consent to the incorporation by reference of our report dated June 20, 1996 included in this Annual Report on Form 11-K, into the Browning-Ferris Industries, Inc. previously filed Form S-8 Registration Statement File No. 33-56583. ARTHUR ANDERSEN LLP Houston, Texas June 20, 1996 -25- 26 SIGNATURES The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the Benefits Administration Committee, which administers the employee benefit plan, has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. BFI EMPLOYEE STOCK OWNERSHIP AND SAVINGS PLAN June 20, 1996 /s/ Gerald K. Burger --------------------------------- Gerald K. Burger /s/ Jeffrey E. Curtiss --------------------------------- Jeffey E. Curtiss /s/ Ronald E. Long --------------------------------- Ronald E. Long /s/ J. Gregory Muldoon --------------------------------- J. Gregory Muldoon /s/ Bruce E. Ranck --------------------------------- Bruce E. Ranck /s/ Craig W. Wasserman --------------------------------- Craig W. Wasserman The Members of the Benefits Administration Committee -----END PRIVACY-ENHANCED MESSAGE-----