-----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, MSzoCZ88HE/Eisp3NLFjr3/rHo0KDvy5g3GpvGUuWOfa9pE9OCc52WyceETGZRwO NIrqk09zM1TZKmtIVSAOkQ== 0000025890-98-000004.txt : 19980630 0000025890-98-000004.hdr.sgml : 19980630 ACCESSION NUMBER: 0000025890-98-000004 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980629 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CROWN CORK & SEAL CO INC CENTRAL INDEX KEY: 0000025890 STANDARD INDUSTRIAL CLASSIFICATION: METAL CANS [3411] IRS NUMBER: 231526444 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 001-02227 FILM NUMBER: 98656581 BUSINESS ADDRESS: STREET 1: ONE CROWN WAY CITY: PHILADELPHIA STATE: PA ZIP: 19154 BUSINESS PHONE: 215-698-5100 11-K 1 CROWN RETIREMENT THRIFT PLAN SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 11-K [ X ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 1997 Commission File Number 1-2227 A. Full title of the plan: Crown Cork & Seal Company, Inc. Retirement Thrift Plan B. Name of issuer of the Securities held pursuant to the plan and the address of its principal executive office: CROWN CORK & SEAL COMPANY, INC. ONE CROWN WAY PHILADELPHIA, PA 19154-4599 INDEX Pages Signatures.......................................................... 3 Report of Independent Accountants................................... 6 Audited Plan Financial Statements and Schedules in accordance with the Financial Reporting Requirements of ERISA........ 7 to 16 Exhibit 23 - Consent of Independent Accountants..................... 17 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Committee has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized Crown Cork & Seal Company, Inc. Retirement Thrift Plan By:/s/ James T. Malec ------------------ James T. Malec Member, Benefit Plan Committee Date: June 29, 1998 Crown Cork & Seal Company Inc. Retirement Thrift Plan Financial Statements as of and for the years ended December 31, 1997 and 1996 Crown Cork & Seal Company, Inc. Retirement Thrift Plan Table of Contents - ------------------------------------------------------------------------------- Page(s) Report of Independent Accountants 1 Financial Statements Statement of Net Assets Available for Benefits 2 Statement of Changes in Net Assets Available for Benefits 3 Notes to Financial Statements 4 - 9 Additional Information* Schedule I - Schedule of Assets Held for Investment Purposes 10 Schedule II - Schedule of Reportable Transactions(Transactions or Series of Transactions in Excess of 5% of Plan Assets) 11 * Other supplemental schedules required by Section 2520.103.10 of the Department of Labor Rules and Regulations for reporting and disclosure under ERISA have been omitted because they are not applicable. Report of Independent Accountants June 19, 1998 To the Benefit Plans Committee and Participants of the Crown Cork & Seal Company, Inc. Retirement Thrift Plan In our opinion, the accompanying statement of net assets for benefits and the related statement of changes in net assets available for benefits, present fairly, in all material respects, the net assets available for benefits of the Crown Cork & Seal Company, Inc. Retirement Thrift Plan (the "Plan") at December 31, 1997 and 1996, and the changes in net assets available for benefits for the years then ended, in conformity with generally accepted accounting principles. These financial statements are the responsibility of the Plan's administrator; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards which 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, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information included in Schedules I and II is presented for purposes of additional analysis and is not a required part of the basic financial statements but is additional information required by ERISA. Schedules I and II have been subjected to the auditing procedures applied in the audit 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. PRICE WATERHOUSE LLP Crown Cork & Seal Company, Inc. Retirement Thrift Plan Statement of Net Assets Available for Benefits - ------------------------------------------------------------------------------- As of December 31, ------------------------ 1997 1996 ---- ---- Investments, at fair value Registered investment companies: Vanguard Balanced Index Fund ................. $ 1,607,816 * $ 889,392 Vanguard Bond Index Fund - Total Bond Market Portfolio ................. 352,602 234,513 Vanguard Explorer Fund ....................... 1,491,357 * 939,853 Vanguard Index Trust - 500 Portfolio ......... 10,308,773 * 6,284,395 Vanguard International Growth Portfolio ...... 1,020,769 711,286 ----------- ----------- 14,781,317 9,059,439 Crown Cork & Seal Stock Fund ................... 2,141,542 * 2,198,250 Crown Cork & Seal Fixed Income Fund ............ 6,893,795 * 6,933,852 ----------- ----------- Total investments ......................... 23,816,654 18,191,541 ----------- ----------- Receivables Employer's contributions ....................... 27,459 20,842 Participants' contributions .................... 317,440 235,076 ----------- ----------- Total receivables .......................... 344,899 255,918 ----------- ----------- Net assets available for benefits .............. $24,161,553 $18,447,459 =========== =========== * Represents 5% or more of net assets available for benefits. The accompanying notes are an integral part of the financial statements. 2 Crown Cork & Seal Company, Inc. Retirement Thrift Plan Statement of Changes in Net Assets Available for Benefits - ------------------------------------------------------------------------------- Year Ended December 31, ------------------------- 1997 1996 ------ ----- Additions Investment income: Interest and dividend income, investments ........$ 866,738 $ 616,232 Net appreciation in fair value of investments ... 2,112,948 1,522,388 ---------- ---------- 2,979,686 2,138,620 ---------- ---------- Contributions: Employer ....................................... 761,897 721,676 Participant .................................... 3,548,853 3,154,412 ---------- ---------- 4,310,750 3,876,088 ----------- ---------- Total additions ............................ 7,290,436 6,014,708 ----------- ---------- Deductions Payment of benefits ................................ 1,551,346 1,243,341 Administrative expenses ............................ 24,996 25,223 ----------- ---------- Total deductions ......................... 1,576,342 1,268,564 ----------- ---------- Net increase ...................................... 5,714,094 4,746,144 Net assets available for benefits: Beginning of period .......................... 18,447,459 13,701,315 ------------ ----------- End of period................................. $24,161,553 $18,447,459 ============ ============ The accompanying notes are an integral part of the financial statements. 3 Crown Cork & Seal Company, Inc. Retirement Thrift Plan Notes to Financial Statements - ------------------------------------------------------------------------------- Note 1 - Description of Plan The following description of the Crown Cork & Seal Company Inc. Retirement Thrift Plan ("Plan") provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan's provisions. General The Plan is a voluntary defined contribution plan which is designed to provide a convenient method by which eligible employees may save regularly through salary deferrals. Participation in the Plan is determined by an agreement among recognized collective bargaining units and Crown Cork & Seal Company, Inc. (the "Company") or as otherwise agreed upon between the Company and non-organized hourly employees. The Plan is administered by the Crown Cork & Seal Company, Inc. Benefit Plans Committee (the "Committee"). The Committee has appointed Vanguard Fiduciary Trust Company (the "Trustee") as the trustee of the Plan. The Plan provides certain employees the opportunity to purchase Company stock at a purchase price equal to the closing price on the day of deposit. Contributions Participants may elect to make basic and supplemental contributions (where permitted) each pay period, and basic contributions may be matched by the Company at various rates. Supplemental contributions (where permitted) are not matched by the Company. In addition, certain participants receive fixed contributions from the Company at varying rates. Participant Accounts Each participant's account is credited with the participant's contribution and allocations of (a) the Company's contribution, and (b) Plan earnings, and charged with an allocation of administrative expenses. Allocations are based on participant earnings or account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant's vested account. Vesting Participants are immediately vested in their contributions plus actual earnings thereon. Vesting in the Company's matching contribution portion of their accounts plus actual earnings thereon is based on various rates established in the collective bargaining agreements. A participant becomes 100% vested after completing 4 or 5 years of service. Payment of Benefits On termination of service due to retirement, attainment of age 65, permanent plant shutdown, permanent disability, or death, the participant automatically becomes fully vested in the Company contributions. Distributions to participants are generally paid only in a lump sum. Certain participants have the option of being paid through monthly installments. 4 Crown Cork & Seal Company, Inc. Retirement Thrift Plan Notes to Financial Statements (continued) - ------------------------------------------------------------------------------ Forfeited Accounts Total unallocated forfeitures were $46,670 and $36,850 at December 31, 1997 and 1996, respectively. These amounts will be used to reduce future employer contributions. Plan Termination The Company reserves the right to amend or modify any of the provisions of the Plan in any respect retroactively in order to qualify or maintain the Plan as a plan meeting the requirements of the Employee Retirement Income Security Act of 1974 (ERISA) or any other applicable legislation. The Plan is subject to the provisions of ERISA. 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. Investment Options During the period ending December 31, 1997, participants were able to allocate their contributions among the following investment options: Vanguard Balanced Index Fund: Seeks to provide income and long-term growth of capital and income by dividing its assets between indexed portfolios of stocks (60%) and bonds (40%). Vanguard Bond Index Fund - Total Bond Market Portfolio: Seeks to provide a high level of interest income by attempting to match the performance of the unmanaged Lehman Brothers Aggregate Bond Index, a widely recognized measure of the entire taxable U.S. bond market. Vanguard Explorer Fund: Seeks to provide long-term growth of capital by investing in a diversified group of small-company stocks with prospects for above-average growth. Vanguard Index Trust - 500 Portfolio: Seeks to provide long-term growth of capital and income from dividends by holding all of the 500 stocks that make up the unmanaged Standard & Poor's 500 Composite Stock Price Index, a widely recognized benchmark of U.S. stock market performance. Vanguard International Growth Portfolio: Seeks to provide long-term growth of capital by investing in stocks of high-quality, seasoned companies based outside the United States. Stocks are selected from more than 15 countries. Crown Cork & Seal Stock Fund: Invests in Crown Cork & Seal stock to provide the possibility of long-term growth through increases in the value of the stock and the reinvestment of its dividends. Crown Cork & Seal Fixed Income Fund: Seeks to preserve the value of the original investment and provide an attractive level of interest by investing primarily in investment contracts issued by insurance companies and banks and other types of fixed principal investments. It is designed to maintain a constant $1.00 share value. 5 Crown Cork & Seal Company, Inc. Retirement Thrift Plan Notes to Financial Statements (continued) - ------------------------------------------------------------------------------ Note 2 - Summary of Accounting Policies The following accounting policies, which conform with generally accepted accounting principles, have been used consistently in the preparation of the Plan's financial statements: Basis of Accounting The financial statements of the Plan are prepared under the accrual method of accounting. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of additions and deductions during the reporting period. Actual results could differ from those estimates. Investment Valuation and Income Recognition The Plan's investments are stated at fair value. Shares of registered investment companies are valued at quoted market prices which represent the net asset value of shares held by the Plan at year-end. The Company stock fund(s) is valued at its year-end unit closing price (comprised of year-end market price plus uninvested cash position.) Units of the Company's fixed income fund are valued at net asset value at year end. Purchases and sales of investments are recorded on a trade-date basis. Interest income is accrued when earned. Dividend income is recorded on the ex-dividend date. Capital gain distributions are included in dividend income. Payment of Benefits Benefits are recorded when paid. Note 3 - Crown Cork & Seal Fixed Income Fund The Crown Cork & Seal Fixed Income Fund consists of guaranteed investment contracts (GICs) valued at contract value, which approximates fair value. Interest rates ranged from 5.07 percent to 6.96 percent and 3.5 percent to 7.75 percent at December 31, 1997 and 1996, respectively. Average yield was 6.07 percent and 5.6 percent for the years ended December 31, 1997 and 1996, respectively. Note 4 - Related Party Transactions The Plan invests in shares of mutual funds managed by an affiliate of Vanguard Fiduciary Trust Company ("VFTC"). VFTC acts as trustee for only those investments as defined by the Plan. Transactions in such investments qualify as party-in-interest transactions which are exempt from the prohibited transaction rules. 6 Crown Cork & Seal Company, Inc. Retirement Thrift Plan Notes to Financial Statements (continued) - ------------------------------------------------------------------------------- Note 5 - Tax Status The Plan was amended and restated, effective January 1, 1994, to comply with all provisions of the Internal Revenue Code (IRC) and ERISA. The Committee has represented that the Plan has been administered in accordance with all provisions of the IRC and ERISA. The Plan has received a favorable determination letter dated February 13, 1996 from the Internal Revenue Service (IRS) and accordingly, the Plan is not subject to federal or local income taxes. 7 Crown Cork & Seal Company, Inc. Retirment Thrift Plan Notes to Financial Statements (continued) - ------------------------------------------------------------------------------ Note 6 - Changes in Net Assets Available for Benefits by Investment Fund The allocation of changes in net assets available for plan benefits for the period ended December 31, 1997 is as follows:
Participant Directed ------------------------------------------------------------------------------------ Vanguard Crown Vanguard Bond Index Vanguard Vanguard Cork & Seal Balanced Fund-Total Vanguard Index International Crown Fixed Index Bond Market Explorer Trust-500 Growth Cork & Seal Income Fund Portfolio Fund Portfolio Portfolio Stock Fund Fund Total Additions Investment income: Interest and dividend income, investments ....... $ 57,165 $ 18,567 $ 145,962 $ 207,644 $ 44,813 $ 39,697 $ 352,890 $ 866,738 Net realized gain (loss) on sale of investments .... 6,325 445 4,901 118,004 5,762 (13,187) -- 122,250 Net unrealized apprec (deprec.)of investments .... 169,098 7,676 11,735 1,999,300 (31,680) (165,431) -- 1,990,698 ----------- ----------- ----------- ----------- ----------- ----------- ----------- --------- 232,588 26,688 162,598 2,324,948 18,895 (138,921) 352,890 2,979,686 ----------- ----------- ----------- ----------- ----------- ----------- ----------- --------- Contributions: Employer ................ 40,070 19,690 64,832 211,305 45,415 191,109 189,476 761,897 Participant ............. 225,689 98,433 319,148 1,592,766 272,432 170,930 869,455 3,548,853 ----------- ----------- ---------- ----------- ----------- ----------- ----------- --------- 265,759 118,123 383,980 1,804,071 317,847 362,039 1,058,931 4,310,750 ----------- ----------- ----------- ----------- ----------- ----------- ----------- --------- Total additions .......... 498,347 144,811 546,578 4,129,019 336,742 223,118 1,411,821 7,290,436 ----------- ----------- ----------- ----------- ----------- ----------- ----------- --------- Deductions Payment of benefits ........ 38,936 6,213 32,513 472,771 33,560 175,941 791,412 1,551,346 Administrative expenses .... 1,344 530 1,842 8,436 1,257 2,877 8,710 24,996 ----------- ----------- ----------- ----------- ----------- ----------- ----------- --------- Total deductions ......... 40,280 6,743 34,355 481,207 34,817 178,818 800,122 1,576,342 ----------- ----------- ----------- ----------- ----------- ----------- ----------- --------- Net increase prior to interfund transfers ....... 458,067 138,068 512,223 3,647,812 301,925 44,300 611,699 5,714,094 Interfund transfers ........ 267,776 (17,749) 48,686 426,618 18,851 (98,062) (646,120) -- ----------- ----------- ----------- ----------- ----------- ----------- ---------- --------- Net increase (decrease) .... 725,843 120,319 560,909 4,074,430 320,776 (53,762) (34,421) 5,714,094 Net assets available for benefits: Beginning of period ..... 904,460 241,832 961,095 6,383,464 727,857 2,220,638 7,008,113 18,447,459 ----------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- End of period ...........$ 1,630,303 $ 362,151 $ 1,522,004 $10,457,894 $ 1,048,633 $ 2,166,876 $ 6,973,692 $24,161,553 =========== =========== =========== =========== =========== =========== ========== ===========
8 Crown Cork & Seal Company, Inc. Retirement Thrift Plan Notes to Financial Statements (continued) - ------------------------------------------------------------------------------- Note 6 - Changes in Net Assets Available for Benefits by Investment Fund The allocation of changes in net assets available for plan benefits for the period ended December 31, 1996 is as follows:
Participant Directed ---------------------------------------------------------------------------------------- Vanguard Crown Vanguard Bond Index Vanguard Vanguard Cork & Seal Balanced Fund-Total Vanguard Index International Crown Fixed Index Bond Market Explorer Trust-500 Growth Cork & Seal Income Fund Portfolio Fund Portfolio Portfolio Stock Fund Fund Total Additions Investment income: Interest and dividend income, investments ....... $ 35,715 $ 11,816 $ 50,739 $ 128,992 $ 30,567 $ 35,357 $ 323,046 $ 616,232 Net realized gain (loss on sale of investments .... 2,063 (2,650) 3,280 28,714 2,715 23,982 58,104 Net unrealized apprec (deprec.) of investments .. 58,277 (2,399) 24,969 887,288 37,243 458,906 -- 1,464,284 ----------- ----------- ----------- ----------- ----------- ----------- ----------- --------- 96,055 6,767 78,988 1,044,994 70,525 518,245 323,046 2,138,620 ----------- ----------- ----------- ----------- ----------- ----------- ----------- --------- Contributions: Employer ................. 24,476 17,232 39,339 190,044 29,129 177,226 244,230 721,676 Participant .............. 190,427 95,627 308,406 1,260,239 200,820 171,433 927,460 3,154,412 ----------- ---------- ----------- ----------- ----------- ----------- ----------- --------- 214,903 112,859 347,745 1,450,283 229,949 348,659 1,171,690 3,876,088 ----------- ----------- ----------- ----------- ----------- ----------- ----------- --------- Total additions ........... 310,958 119,626 426,733 2,495,277 300,474 866,904 1,494,736 6,014,708 ----------- ----------- ----------- ----------- ----------- ----------- ----------- --------- Deductions Payment of benefits ......... 40,680 24,010 37,721 299,457 16,578 99,735 725,160 1,243,341 Administrative expenses ..... 1,143 484 1,596 7,216 963 3,270 10,551 25,223 ----------- ----------- ----------- ----------- ----------- ----------- ----------- --------- Total deductions .......... 41,823 24,494 39,317 306,673 17,541 103,005 735,711 1,268,564 ----------- ----------- ----------- ----------- ----------- ----------- ----------- --------- Net increase prior to interfund transfers ........ 269,135 95,132 387,416 2,188,604 282,933 763,899 759,025 4,746,144 Interfund transfers ......... 43,875 (10,335) 70,239 201,114 111,002 (63,801) (352,094) -- ---------- ----------- ----------- ----------- ----------- ----------- ---------- --------- Net increase................. 313,010 84,797 457,655 2,389,718 393,935 700,098 406,931 4,746,144 Net assets available for benefits: Beginning of period ...... 591,450 157,035 503,440 3,993,746 333,922 1,520,540 6,601,182 13,701,315 ---------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- End of period ............$ 904,460 $ 241,832 $ 961,095 $6,383,464 $ 727,857 $ 2,220,638 $ 7,008,113 $18,447,459 =========== =========== =========== =========== =========== =========== ========== ===========
9 Crown Cork & Seal Company Inc. Schedule I Retirement Thrift Plan EIN 23-1526444 Schedule of Assets Held for Investment Purposes Attachment to Form 5500, Line 27(a) As of December 31, 1997 - -----------------------------------------------------------------------------
Current Identity of Issue Investment Type Cost Value * Vanguard Balanced Index Fund ...................................... Registered Investment Company $ 1,332,217 $ 1,607,816 * Vanguard Bond Index Fund Total Bond Market Portfolio .......................................Registered Investment Company 344,211 352,602 * Vanguard Explorer Fund ........................................... Registered Investment Company 1,449,139 1,491,357 * Vanguard Index Trust-500 Portfolio ................................ Registered Investment Company 6,888,535 10,308,773 * Vanguard International Growth Portfolio............................ Registered Investment Company 1,009,613 1,020,769 * Crown Cork & Seal Common Stock Fund ............................... Company Stock Fund 1,846,116 2,141,542 * Crown Cork & Seal Fixed Income Fund ............................... Unallocated Insurance Contracts 6,893,795 6,893,795 ----------- ----------- Total assets held for investment purposes ........................... $19,763,626 $23,816,654 =========== ===========
* Party in Interest 10 Crown Cork & Seal Company Inc. Schedule II Retirement Thrift Plan EIN 23-1526444 Schedule of Reportable Transactions Form 5500, Line 27(d) December 31, 1997 - -------------------------------------------------------------------------------
Current Value Historical of Asset on Historical Identity of Purchase Selling Cost Transaction Gain Party Involved Description of Asset Price Price of Asset Date (Loss) -------------- -------------------- ----- ----- -------- ---- ------ The Vanguard Group Vanguard Explorer Fund $ 759,870 $ 759,870 - The Vanguard Group Vanguard Explorer Fund $ 225,003 $ 214,445 225,003 $ 10,558 The Vanguard Group Vanguard Index Trust-500 Portfolio 2,748,177 2,748,177 The Vanguard Group Vanguard Index Trust-500 Portfolio 841,103 608,622 841,103 232,481 The Vanguard Group Crown Cork & Seal Fixed Income Fund 1,846,345 1,846,345 The Vanguard Group Crown Cork & Seal Fixed Income Fund 1,886,401 1,886,401 1,886,401 -
* Transactions or a series of transactions in excess of 5% of the current value of the Plan's assets as of the beginning of the Plan year as defined in section 2520.103-6 of the Department of Labor Rules and Regulations for Reporting and Disclosure under ERISA. 11 EX-23 2 CONSENT OF INDEPENDENT ACCOUNTANTS Consent of Independent Accountants We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 (No. 33-50369) of Crown Cork & Seal Company, Inc. of our report dated June 19, 1998 appearing on page 6 of this Form 11-K. PRICE WATERHOUSE LLP Philadelphia, Pennsylvania June 26, 1998 -----END PRIVACY-ENHANCED MESSAGE-----