-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, oQRIqMM9rtoCassKQ5KiBrF/xTekDK0FGIvOMnLqPfkabH2XEEdWgXgSy0+a1GHo b6N2YLe4LeWHHzzLZGgiYQ== 0000026172-94-000006.txt : 19940706 0000026172-94-000006.hdr.sgml : 19940706 ACCESSION NUMBER: 0000026172-94-000006 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19931231 FILED AS OF DATE: 19940628 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CUMMINS ENGINE CO INC CENTRAL INDEX KEY: 0000026172 STANDARD INDUSTRIAL CLASSIFICATION: 3510 IRS NUMBER: 350257090 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-04949 FILM NUMBER: 94536072 BUSINESS ADDRESS: STREET 1: 500 JACKSON ST STREET 2: BOX 3005 MAIL CODE 60701 CITY: COLUMBUS STATE: IN ZIP: 47202-3005 BUSINESS PHONE: 8123775000 MAIL ADDRESS: STREET 1: BOX 3005 MAIL CODE 60701 CITY: COLUMBUS STATE: IN ZIP: 47202-3005 - - -----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, kMAWnLiWZeVJOf/k2qE1e8WVGJRNKRY/Oxt+qh4qyFCjM21xrTfriST0GTMV2tT1 J1seAo7gmDXZ6ColKW1zIw== 0000026172-94-000006.txt : 19940701 0000026172-94-000006.hdr.sgml : 19940701 ACCESSION NUMBER: 0000026172-94-000006 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19931231 FILED AS OF DATE: 19940628 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CUMMINS ENGINE CO INC CENTRAL INDEX KEY: 0000026172 STANDARD INDUSTRIAL CLASSIFICATION: 3510 IRS NUMBER: 350257090 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-04949 FILM NUMBER: 94536072 BUSINESS ADDRESS: STREET 1: 500 JACKSON ST STREET 2: BOX 3005 MAIL CODE 60701 CITY: COLUMBUS STATE: IN ZIP: 47202-3005 BUSINESS PHONE: 8123775000 MAIL ADDRESS: STREET 1: BOX 3005 MAIL CODE 60701 CITY: COLUMBUS STATE: IN ZIP: 47202-3005 11-K 1 11-K REPORT CUMMINS ENGINE COMPANY, INC. AND AFFILIATES RETIREMENT AND SAVINGS PLANS INDEX TO FINANCIAL STATEMENTS Page ~~~~ Report of Independent Public Accountants 2 Combining Statements of Net Assets by Plan 3 Combining Statements of Changes in Net Assets by Plan 7 Combining Statements of Net Assets by Fund 11 Combining Statements of Changes in Net Assets by Fund 15 Notes to Financial Statements 19 Signature 30 Schedules ~~~~~~~~ Schedule I - Assets Held for Investment Purposes 25 Schedule II - Matching Contribution Formulas 27 Exhibit ~~~~~~~ 23 - Consent of Independent Public Accountants REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ To the Pension Policy Committee of Cummins Engine Company, Inc.: We have audited the accompanying combining statements of net assets by plan and by fund, of the CUMMINS ENGINE COMPANY, INC. AND AFFILIATES RETIREMENT AND SAVINGS PLANS as of December 31, 1993 and 1992, and the related statements of changes in net assets by plan and by fund, for the years ended December 31, 1993 and 1992. These financial statements and the schedules referred to below are the responsibility of the plan's management. Our responsibility is to express an opinion on these financial statements and schedules based on our audit. 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 of the Plans as of December 31, 1993 and 1992, and the changes in their net assets for the years ended December 31, 1993 and 1992, 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 and matching contribution formulas are presented for purposes of additional analysis. They are not a required part of the basic financial statements but contain 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 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. ARTHUR ANDERSEN & CO. Chicago, Illinois June 10, 1994 CUMMINS ENGINE COMPANY, INC. AND AFFILIATES RETIREMENT AND SAVINGS PLANS COMBINING STATEMENTS OF NET ASSETS BY PLAN DECEMBER 31, 1993 SALARIED BARGAINING ONAN ~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~~ Assets Cash and investments: Cash & short-term investments $ 328,685 $ - $ - Guaranteed investment contracts 72,788,095 93,361,040 15,691,005 Wellington mutual funds 55,003,648 32,495,620 15,820,919 Vanguard U.S. Growth Fund mutual funds 17,586,368 5,620,077 5,283,722 Vanguard Index Trust mutual funds 24,009,361 10,301,987 7,058,607 Investment in common stock of Cummins Engine Co., Inc. 131,980,775 6,035,210 1,543,540 Participant loan receivable 5,130,161 3,517,829 1,599,264 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ Total cash & investments 306,827,093 151,331,763 46,997,057 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ Receivables: Employer contributions 4,097,201 1,457,591 265,993 Employee contributions 1,730,978 1,377,332 618,696 Accrued income 523 - - ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ Total receivables 5,828,702 2,834,923 884,689 ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ Total assets 312,655,795 154,166,686 47,881,746 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ Liabilities: Interest payable 3,094,470 - - Note payable - ESOP 70,650,000 - - ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ Total liabilities 73,744,470 - - ~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~ Net assets $238,911,325 $154,166,686 $ 47,881,746 ~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~~ The accompanying notes are an integral part of these statements. CUMMINS ENGINE COMPANY, INC. AND AFFILIATES RETIREMENT AND SAVINGS PLANS COMBINING STATEMENTS OF NET ASSETS BY PLAN DECEMBER 31, 1993 LUBRICON CDC TOTAL ~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~~ Assets Cash and investments: Cash & short-term investments $ - $ 328,685 Guaranteed investment contracts 103,310 4,950,119 186,893,569 Wellington mutual funds 161,980 2,769,269 106,251,436 Vanguard U.S. Growth Fund mutual funds 48,042 1,050,410 29,588,619 Vanguard Index Trust mutual funds 38,593 1,616,380 43,024,928 Investment in common stock of Cummins Engine Co., Inc. 9,669 610,445 140,179,639 Participant loan receivable 12,143 746,443 11,005,840 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ Total cash & investments 373,737 11,743,066 517,272,716 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ Receivables: Employer contributions 18,216 563,986 6,402,987 Employee contributions 1,795 183,540 3,912,341 Accrued income - - 523 ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ Total receivables 20,011 747,526 10,315,851 ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Total assets 393,748 12,490,592 527,588,567 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ Liabilities: Interest payable - - 3,094,470 Note payable - ESOP - - 70,650,000 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ Total liabilities - - 73,744,470 ~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~~ Net assets $ 393,748 $ 12,490,592 $453,844,097 ~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~~ The accompanying notes are an integral part of these statements. CUMMINS ENGINE COMPANY, INC. AND AFFILIATES RETIREMENT AND SAVINGS PLANS COMBINING STATEMENTS OF NET ASSETS BY PLAN DECEMBER 31, 1992 SALARIED BARGAINING ONAN ~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~~ Assets Cash and investments: Cash & short-term investments $ 114,341 $ - $ - Guaranteed investment contracts 69,435,937 89,762,748 13,863,736 Wellington mutual funds 40,093,153 23,878,229 12,601,316 Vanguard U.S. Growth Fund mutual funds 17,034,355 5,879,896 5,567,243 Vanguard Index Trust mutual funds 18,058,189 7,683,622 5,690,486 Investment in common stock of Cummins Engine Co., Inc. 96,014,692 5,399,323 641,889 Participant loan receivable 4,609,149 2,620,830 1,262,885 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ Total cash & investments 245,359,816 135,224,648 39,627,555 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ Receivables: Employer contributions 4,135,439 - - Accrued income 257 - - ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ Total receivables 4,135,696 - - ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ Total assets 249,495,512 135,224,648 39,627,555 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ Liabilities: Interest payable 3,142,650 - - Note payable - ESOP 71,750,000 - - ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ Total liabilities 74,892,650 - - ~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~ Net assets $174,602,862 $135,224,648 $ 39,627,555 ~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~~ The accompanying notes are an integral part of these statements. CUMMINS ENGINE COMPANY, INC. AND AFFILIATES RETIREMENT AND SAVINGS PLANS COMBINING STATEMENTS OF NET ASSETS BY PLAN DECEMBER 31, 1992 LUBRICON CDC TOTAL ~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~~ Assets Cash and investments: Cash & short-term investments $ - $ - $ 114,341 Guaranteed investment contracts 77,078 4,644,234 177,783,733 Wellington mutual funds 71,894 2,352,933 78,997,525 Vanguard U.S. Growth Fund mutual funds 49,493 1,095,831 29,626,818 Vanguard Index Trust mutual funds 45,110 1,383,813 32,861,220 Investment in common stock of Cummins Engine Co., Inc. 6,023 273,613 102,335,540 Participant loan receivable 11,796 639,323 9,143,983 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ Total cash & investments 261,394 10,389,747 430,863,160 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ Receivables: Employer contributions - - 4,135,439 Accrued income - - 257 ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ Total receivables - - 4,135,696 ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Total assets 261,394 10,389,747 434,988,856 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ Liabilities: Interest payable - - 3,142,650 Note payable - ESOP - - 71,750,000 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ Total liabilities - - 74,892,650 ~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~ Net assets $ 261,394 $ 10,389,747 $360,106,206 ~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~~ The accompanying notes are an integral part of these statements. CUMMINS ENGINE COMPANY, INC. AND AFFILIATES RETIREMENT AND SAVINGS PLANS COMBINING STATEMENTS OF CHANGES IN NET ASSETS BY PLAN DECEMBER 31, 1993 SALARIED BARGAINING ONAN ~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~~ Net assets-beginning of year $174,602,862 $135,224,648 $ 39,627,555 ~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~~ Investment income: Interest income 5,318,260 6,848,527 1,168,900 Dividend income from mutual funds 3,990,921 2,242,700 1,216,205 Dividend income from investment in stock 489,589 22,980 5,229 Net realized & unrealized appreciation in the value of investments 39,732,459 3,746,072 1,370,769 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ Total investment income 49,531,229 12,860,279 3,761,103 Less: interest expense 6,188,940 - - administrative expenses 116,787 86,905 15,075 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ Net investment income 43,225,502 12,773,374 3,746,028 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ Contributions: Employer 7,086,975 1,457,590 265,992 Employee 19,346,598 13,716,542 5,981,731 Rollover 927,680 17,157 26,321 ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ Total contributions 27,361,253 15,191,289 6,274,044 ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ Participants' withdrawals 6,743,662 8,871,882 1,588,030 Inter-plan transfers 465,370 (150,743) (177,851) ~~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~~ Net assets - end of year $238,911,325 $154,166,686 $47,881,746 ~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~ The accompanying notes are an integral part of these statements. CUMMINS ENGINE COMPANY, INC. AND AFFILIATES RETIREMENT AND SAVINGS PLANS COMBINING STATEMENTS OF CHANGES IN NET ASSETS BY PLAN DECEMBER 31, 1993 LUBRICON CDC TOTAL ~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~~ Net assets-beginning of year $ 261,394 $ 10,389,747 $360,106,206 ~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~~ Investment income: Interest income 7,385 350,707 13,693,779 Dividend income from mutual funds 9,659 229,872 7,689,357 Dividend income from investment in stock 32 2,483 520,313 Net realized & unrealized appreciation in the value of investments 11,390 368,957 45,229,647 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ Total investment income 28,466 952,019 67,133,096 Less: interest expense - - 6,188,940 administrative expenses 95 4,887 223,749 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ Net investment income 28,371 947,132 60,720,407 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ Contributions: Employer 18,215 563,985 9,392,757 Employee 63,057 1,985,430 41,093,358 Rollover 1,100 3,076 975,334 ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ Total contributions 82,372 2,552,491 51,461,449 ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ Participants' withdrawals 20,228 1,220,163 18,443,965 Inter-plan transfers 41,839 (178,615) - ~~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~~ Net assets - end of year $ 393,748 $ 12,490,592 $453,844,097 ~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~ The accompanying notes are an integral part of these statements. CUMMINS ENGINE COMPANY, INC. AND AFFILIATES RETIREMENT AND SAVINGS PLANS COMBINING STATEMENTS OF CHANGES IN NET ASSETS BY PLAN DECEMBER 31, 1992 SALARIED BARGAINING ONAN ~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~~ Net assets-beginning of year $123,366,657 $114,659,163 $ 31,725,910 ~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~~ Investment income: Interest income 5,110,495 6,386,288 956,224 Dividend income from mutual funds 2,920,270 1,557,963 926,598 Dividend income from investment in stock 244,219 10,635 1,453 Net realized & unrealized appreciation in the value of investments 30,580,141 1,944,510 662,672 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ Total investment income 38,855,125 9,899,396 2,546,947 Less: interest expense 6,285,300 - - administrative expenses 76,341 55,062 7,955 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ Net investment income 32,493,484 9,844,334 2,538,992 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ Contributions: Employer 7,200,070 1,475,306 263,611 Employee 18,113,151 14,439,827 5,733,837 Rollover 2,591,878 2,760,690 747,788 ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ Total contributions 27,905,099 18,675,823 6,745,236 ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ Payments for: Participants' withdrawals 9,162,378 7,954,672 1,382,583 ~~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~~ Net assets - end of year $174,602,862 $135,224,648 $39,627,555 ~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~ The accompanying notes are an integral part of these statements. CUMMINS ENGINE COMPANY, INC. AND AFFILIATES RETIREMENT AND SAVINGS PLANS COMBINING STATEMENTS OF CHANGES IN NET ASSETS BY PLAN DECEMBER 31, 1992 LUBRICON CDC TOTAL ~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~~ Net assets-beginning of year $ 178,544 $ 8,206,160 $278,136,434 ~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~~ Investment income: Interest income 3,900 325,906 12,782,813 Dividend income from mutual funds 3,838 163,760 5,572,429 Dividend income from investment in stock 9 611 256,927 Net realized & unrealized appreciation in the value of investments 3,234 160,853 33,351,410 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ Total investment income 10,981 651,130 51,963,579 Less: interest expense - - 6,285,300 administrative expenses 36 2,827 142,221 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ Net investment income 10,945 648,303 45,536,058 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ Contributions: Employer 22,933 589,242 9,551,162 Employee 60,359 2,207,931 40,555,105 Rollover - 44,085 6,144,441 ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ Total contributions 83,292 2,841,258 56,250,708 ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ Payments for: Participants' withdrawals 11,387 1,305,974 19,816,994 ~~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~~ Net assets - end of year $ 261,394 $ 10,389,747 $360,106,206 ~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~~ The accompanying notes are an integral part of these statements. CUMMINS ENGINE COMPANY, INC. AND AFFILIATES RETIREMENT AND SAVINGS PLANS COMBINING STATEMENTS OF NET ASSETS BY FUND DECEMBER 31, 1993 WELLINGTON U.S. GROWTH INDEX FUND FIXED INCOME ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ Assets Cash and investments: Cash and short-term investments $ - $ - $ - $ - Guaranteed investment contracts - - - 186,893,569 Wellington mutual funds 106,251,436 - - - Vanguard US Growth Fund mutual funds - 29,588,619 - - Vanguard Index Trust mutual funds - - 43,024,928 - Investment in common stock of Cummins Eng.Co.,Inc. - - - - Participant loan rec. - - - - ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ Total cash & investments 106,251,436 29,588,619 43,024,928 186,893,569 ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ Receivables: Employer contributions 588,278 231,420 281,703 1,190,247 Employee contributions 1,158,243 549,907 605,061 1,413,642 Accrued interest - - - - ~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Total receivables 1,746,521 781,327 886,764 2,603,889 ~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Total assets 107,997,957 30,369,946 43,911,692 189,497,458 ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Liabilities: Interest payable - - - - Note payable-ESOP - - - - ~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ Total liabilities - - - - ~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Net assets $107,997,957 $30,369,946 $43,911,692 $189,497,458 ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ The accompanying notes are an integral part of these statements. CUMMINS ENGINE COMPANY, INC. AND AFFILIATES RETIREMENT AND SAVINGS PLANS COMBINING STATEMENTS OF NET ASSETS BY FUND DECEMBER 31, 1993 CUMMINS LOAN FUND STOCK ESOP TOTAL ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ Assets Cash and investments: Cash and short-term investments $ - $ - $ 328,685 $ 328,685 Guaranteed investment contracts - - - 186,893,569 Wellington mutual funds - - - 106,251,436 Vanguard US Growth Fund mutual funds - - - 29,588,619 Vanguard Index Trust mutual funds - - - 43,024,928 Investment in common stock of Cummins Eng.Co.,Inc. - 15,200,731 124,978,908 140,179,639 Participant loan rec. 11,005,840 - - 11,005,840 ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ Total cash & investments 11,005,840 15,200,731 125,307,593 517,272,716 ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ Receivables: Employer contributions - 116,869 3,994,470 6,402,987 Employee contributions - 185,488 - 3,912,341 Accrued interest - - 523 523 ~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Total receivables - 302,357 3,994,993 10,315,851 ~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Total assets 11,005,840 15,503,088 129,302,586 527,588,567 ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Liabilities: Interest payable - - 3,094,470 3,094,470 Note payable-ESOP - - 70,650,000 70,650,000 ~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ Total liabilities - - 73,744,470 73,744,470 ~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Net assets $ 11,005,840 $15,503,088 $55,558,116 $453,844,097 ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ The accompanying notes are an integral part of these statements. CUMMINS ENGINE COMPANY, INC. AND AFFILIATES RETIREMENT AND SAVINGS PLANS COMBINING STATEMENTS OF NET ASSETS BY FUND DECEMBER 31, 1992 WELLINGTON U.S. GROWTH INDEX FUND FIXED INCOME ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ Assets Cash and investments: Cash and short-term investments $ - $ - $ - $ - Guaranteed investment contracts - - - 176,418,182 Wellington mutual funds 77,034,070 - - - Vanguard US Growth Fund mutual funds - 28,364,808 - - Vanguard Index Trust mutual funds - - 31,981,822 - Investment in common stock of Cummins Eng.Co.,Inc. - - - - Participant loan rec. - - - - ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ Total cash & investments 77,034,070 28,364,808 31,981,822 176,418,182 ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ Receivables: Employer contributions 529,792 273,634 292,865 1,238,098 Accrued income 860,848 444,622 475,870 1,733,148 Rollover contributions 40,789 31,763 10,423 66,127 Accrued interest - - - 6,355 Inter-fund transfers 685,988 527,949 151,418 ~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Total receivables 2,117,417 1,277,968 930,576 3,043,728 ~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Total assets 79,151,487 29,642,776 32,912,398 179,461,910 ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Liabilities: Withdrawals payable 153,963 15,959 51,178 417,351 Interest payable - - - - Note payable-ESOP - - - - Inter-fund transfers - - - 1,260,824 ~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ Total liabilities 153,963 15,959 51,178 1,678,175 ~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Net assets $ 78,997,524 $29,626,817 $32,861,220 $177,783,735 ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ The accompanying notes are an integral part of these statements. CUMMINS ENGINE COMPANY, INC. AND AFFILIATES RETIREMENT AND SAVINGS PLANS COMBINING STATEMENTS OF NET ASSETS BY FUND DECEMBER 31, 1992 CUMMINS LOAN FUND STOCK ESOP TOTAL ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ Assets Cash and investments: Cash and short-term investments $ - $ - $ 114,341 $ 114,341 Guaranteed investment contracts - - - 176,418,182 Wellington mutual funds - - - 77,034,070 Vanguard US Growth Fund mutual funds - - - 28,364,808 Vanguard Index Trust mutual funds - - - 31,981,822 Investment in common stock of Cummins Eng.Co.,Inc. - 11,275,805 91,039,728 102,315,533 Participant loan rec. 9,143,983 - - 9,143,983 ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ Total cash & investments 9,143,983 11,275,805 91,154,069 425,372,739 ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ Receivables: Employer contributions - 55,728 4,135,439 6,525,556 Accrued income - 90,551 - 3,605,039 Rollover contributions - 11,006 - 160,108 Accrued interest - 7,439 257 14,051 Inter-fund transfers - - - 1,365,355 ~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Total receivables - 164,724 4,135,696 11,670,109 ~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Total assets 9,143,983 11 440 529 95,289,765 437,042,848 ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Liabilities: Withdrawals payable - 40,186 - 678,637 Interest payable - - 3,142,650 3,142,650 Note payable-ESOP - - 71,750,000 71,750,000 Inter-fund transfers - 104,531 - 1,365,355 ~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ Total liabilities - 144,717 74,892,650 76,936,642 ~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Net assets $ 9,143,983 $11,295,812 $20,397,115 $360,106,206 ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ The accompanying notes are an integral part of these statements. CUMMINS ENGINE COMPANY, INC. AND AFFILIATES RETIREMENT AND SAVINGS PLANS COMBINING STATEMENTS OF CHANGES IN NET ASSETS BY FUND DECEMBER 31, 1993 WELLINGTON U.S. GROWTH INDEX FUND FIXED INCOME ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ Net assets - beginning of year $ 78,997,524 $29,626,817 $32,861,220 $177,783,735 ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ Investment income (loss): Interest income - - - 13,689,198 Dividend income from mutual funds 6,210,466 413,911 1,064,980 - Dividend income from investment in stock - - - - Net realized & unrealized appreciation in the value of investments 5,208,144 (872,201) 2,505,756 - ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Total investment income (loss) 11,418,610 (458,290) 3,570,736 13,689,198 Less: interest expense - - - - administrative exp. - - - 150,447 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Net investment income (loss) 11,418,610 (458,290) 3,570,736 13,538,751 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Contributions: Employer 588,279 231,420 281,703 1,190,239 Employee 12,038,643 6,065,512 6,653,884 14,923,408 Rollover 309,952 191,510 217,193 172,588 ~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Total contributions 12,936,874 6,488,442 7,152,780 16,286,235 ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Participants' loan repayments 1,305,821 655,318 704,539 1,840,057 ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Payments for Participants' withdrawals 3,245,402 995,362 1,140,196 12,120,414 Participant loan withdrawals 1,917,140 685,207 854,182 2,877,072 Inter-fund transfers (8,501,670) 4,261,772 (1,616,795) 4,953,834 ~~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ Total payments and transfers (3,339,128) 5,942,341 377,583 19,951,320 ~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Net assets - end of year $107,997,957 $30,369,946 $43,911,692 $189,497,458 ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ The accompanying notes are an integral part of these statements. CUMMINS ENGINE COMPANY, INC. AND AFFILIATES RETIREMENT AND SAVINGS PLANS COMBINING STATEMENTS OF CHANGES IN NET ASSETS BY FUND DECEMBER 31, 1993 CUMMINS LOAN FUND STOCK ESOP TOTAL ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ Net assets - beginning of year $ 9,143,983 $11,295,812 $20,397,115 $360,106,206 ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ Investment income (loss): Interest income - 2,706 1,875 13,693,779 Dividend income from mutual funds - - - 7,689,357 Dividend income from investment in stock - 54,821 465,492 520,313 Net realized & unrealized appreciation in the value of investments - 4,055,556 34,332,392 45,229,647 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Total investment income (loss) - 4,113,083 34,799,759 67,133,096 Less: interest expense - - 6,188,940 6,188,940 administrative exp. - 26,761 46,541 223,749 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Net investment income (loss) - 4,086,322 28,564,278 60,720,407 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Contributions: Employer - 116,867 6,984,249 9,392,757 Employee - 1,411,911 - 41,093,358 Rollover - 84,091 - 975,334 ~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Total contributions - 1,612,869 6,984,249 51,461,449 ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Participants' loan repayments (4,728,329) 222,594 - - ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Payments for Participants' withdrawals - 555,065 387,526 18,443,965 Participant loan withdrawals (6,590,186) 256,585 - - Inter-fund transfers - 902,859 - - ~~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ Total payments and transfers (6,590,186) 1,714,509 387,526 18,443,965 ~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Net assets - end of year $ 11,005,840 $15,503,088 $55,558,116 $453,844,097 ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ The accompanying notes are an integral part of these statements. CUMMINS ENGINE COMPANY, INC. AND AFFILIATES RETIREMENT AND SAVINGS PLANS COMBINING STATEMENTS OF CHANGES IN NET ASSETS BY FUND DECEMBER 31, 1992 WELLINGTON U.S. GROWTH INDEX FUND FIXED INCOME ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ Net assets - beginning of year $ 68,104,560 $21,793,212 $25,856,459 $166,628,704 ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ Investment income (loss): Interest income - - - 12,768,180 Dividend income from mutual funds 4,191,097 472,310 909,022 - Dividend income from investment in stock - - - - Net realized & unrealized appreciation in the value of investments 1,341,733 452,921 1,286,897 - ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Total investment income (loss) 5,532,830 925,231 2,195,919 12,768,180 Less: interest expense - - - - administrative exp. - - - 91,385 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Net investment income (loss) 5,532,830 925,231 2,195,919 12,676,795 ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Contributions: Employer 572,426 258,755 283,950 1,187,282 Employee 11,508,246 5,960,624 6,360,674 15,584,564 Rollover 396,711 264,563 207,295 1,387,538 ~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Total contributions 12,477,383 6,483,942 6,851,919 18,159,384 ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Payments for: Participants' withdrawals 3,330,466 878,094 1,022,348 13,871,192 Participant loan withdrawals 2,408,493 963,409 1,006,581 4,371,365 Inter-fund transfers 1,378,290 (2,265,935) 14,148 1,438,591 ~~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ Total payments and transfers 7,117,249 (424,432) 2,043,077 19,681,148 ~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Net assets - end of year $ 78,997,524 $29,626,817 $32,861,220 $177,783,735 ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ The accompanying notes are an integral part of these statements. CUMMINS ENGINE COMPANY, INC. AND AFFILIATES RETIREMENT AND SAVINGS PLANS COMBINING STATEMENTS OF CHANGES IN NET ASSETS BY FUND DECEMBER 31, 1992 CUMMINS LOAN FUND STOCK ESOP TOTAL ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ Net assets - beginning of year $ - $ 3,869,864 $(8,116,365) $278,136,434 ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ Investment income (loss): Interest income - 12,635 1,998 12,782,813 Dividend income from mutual funds - - - 5,572,429 Dividend income from investment in stock - 22,870 234,057 256,927 Net realized & unrealized appreciation in the value of investments - 2,479,053 27,790,806 33,351,410 ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Total investment income (loss) - 2,514,558 28,026,861 51,963,579 Less: interest expense - - 6,285,300 6,285,300 administrative exp. - 20,160 30,676 142,221 ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Net investment income (loss) - 2,494,398 21,710,885 45,536,058 ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Contributions: Employer - 70,659 7,178,090 9,551,162 Employee - 1,140,997 - 40,555,105 Rollover - 3,888,334 - 6,144,441 ~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Total contributions - 5,099,990 7,178,090 56,250,708 ~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Payments for Participants' withdrawals - 339,399 375,495 19,816,994 Participant loan withdrawals (9,143,983) 394,135 - - Inter-fund transfers - (565,094) - - ~~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ Total payments and transfers (9,143,983) 168,440 375,495 19,816,994 ~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~~ Net assets - end of year $ 9,143,983 $11,295,812 $20,397,115 $360,106,206 ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ The accompanying notes are an integral part of these statements. CUMMINS ENGINE COMPANY, INC. AND AFFILIATES RETIREMENT AND SAVINGS PLANS NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1993 AND 1992 1. MERGER OF EXISTING PLANS AND TRUSTS ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Effective January 1, 1992, various Cummins Engine Company, Inc. and Affiliates Qualified Savings Plans, the Onan Retirement Savings Plan, and various Cummins Engine Company, Inc. and Affiliates Deferred Income Plans were merged into one defined contribution plan for each of five employee groups restated and renamed as the Cummins Engine Company, Inc. and Affiliates Retirement and Savings Plans (the Plans). Basic plan provisions remained the same under the restated Plan document, with the addition of a new loan feature (as described in Note 2) and new employee investment options (as described in Note 2). On January 2, 1992, the assets maintained under the Qualified Savings Trust, Onan Retirement Savings Trust, and the Deferred Income Trust were transferred from their prior trustee, The Northern Trust Company, to their successor trustee, The Vanguard Fiduciary Trust Company (the Trustee) and are held in a single trust, The Retirement and Savings Trust (the Trust)(see Note 2). 2. SUMMARY OF ACCOUNTING POLICIES ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Basis of Combination ~~~~~~~~~~~~~~~~~~~~ The Combining Statements of Net Assets and Changes in Net Assets reflect the financial activity of the Retirement and Savings Plans of Cummins Engine Company, Inc. (the Company) and certain subsidiary companies (the Companies). These Plans include: Cummins Engine Company, Inc. and Affiliates Retirement and Savings Plan for Salaried and Non-Bargaining Hourly Employees (Salaried Plan) Cummins Engine Company, Inc. and Affiliates Retirement and Savings Plan for Bargaining Unit Employees (Bargaining Plan) Cummins Engine Company, Inc. Retirement and Savings Plan for Onan Corporation Employees (Onan Plan) Cummins Engine Company, Inc. Retirement and Savings Plan for Lubricant Consultants, Inc. Employees (Lubricon Plan) Cummins Engine Company, Inc. Retirement and Savings Plan for Consolidated Diesel Company Employees (CDC Plan). Certain reclassifications have been made in the prior year financial statements. These reclassifications were made to conform with current year presentations and have no impact on previously reported net assets. Trust Arrangements ~~~~~~~~~~~~~~~~~~ As stated in Note 1, a single trust arrangement is maintained with the Trustee for the administration of the primary investments in the Plans; however, a separate trust arrangement is maintained with The Northern Trust Company for the Employee Stock Ownership ("ESOP") portion of the Plans (as described in Note 3). Accounting Method ~~~~~~~~~~~~~~~~~ Accounting records are maintained by the Trustee on a modified cash basis. All material adjustments have been made to present the financial statements under the accrual basis of accounting as required by generally accepted accounting principles. All investments included in the Combining Statements of Net Assets and Schedule I, and the related income included in the Combining Statements of Changes in Net Assets reflect amounts obtained from and certified by the respective trustees as being complete and accurate. At December 31, 1992, the total asset balances in the Combining Statements of Net Assets by Plan do not agree with the total asset balances in the Combining Statements of Net Assets by Fund. Contributions and withdrawals and the related effect on investment balances were recorded in the Combining Statements of Net Assets by Plan in the period contributions and withdrawals were elected by the participants. Conversely, the Combining Statements of Net Assets by Fund recorded the activity in the period cash was transferred and the transaction was completed with an accrual for contributions and withdrawals elected but not completed at December 31, 1992. The difference in accounting affects the classification of assets between the two statements but does not affect net assets. At December 31, 1993, both the Combining Statements of Net Assets by Plan and Fund recorded activity in the period cash was transferred and include all accruals necessary for the statements to be in accordance with generally accepted accounting principles. Investments ~~~~~~~~~~~ Investments held by the Trust are stated at market value and changes in market value are reflected in net investment income (loss). Quoted market prices are used to value investments. Assets of the Trust are segregated into five investment funds: the Wellington Fund, the Vanguard U.S. Growth Fund, the Vanguard Index 500 Trust Fund, the Fixed Income Fund, and the Cummins Common Stock Fund. Maintenance of separate funds provides investment alternatives to participants in the Plans; the allocation of investments between the funds is at the direction of participants. The assets of the Wellington Fund consist primarily of equity, fixed income, and cash equivalent marketable securities. The Vanguard U.S. Growth Fund consists primarily of long-term domestic and foreign capital growth stock. The Vanguard Index 500 Trust Fund consists primarily of equity and cash equivalent marketable securities whose investment results should correspond to the performance of the Standard & Poor's 500 Composite Stock Price (S & P 500) Index. The Fixed Income Fund consists primarily of insurance and bank investment contracts. The Cummins Stock Fund consists of investments in Company common stock. The ESOP Fund consists of matching contributions in the form of common stock for certain plans. Net investment income (loss) of each fund is allocated to each Plan based on the relationship of each Plan's investment in the fund to the total investment in the fund. Net investment income (loss) is likewise allocated to participants based on the relationship of participant account balances in each fund to the total balance in each fund. Participant Loan Receivable ~~~~~~~~~~~~~~~~~~~~~~~~~~~ The Plans permit participants to borrow portions of their accounts subject to Department of Labor regulations. Participants may take out loans limited to the lessor of $50,000 or 50 percent of the present value of their accounts (excluding ESOP accounts) over a period not to exceed 54 months. The annual interest rate is the Prime Rate as quoted in the Wall Street Journal plus 1 percent. The amount used to secure a loan is 50 percent of the participant's account balance. Participant loan activity is reported in the Combining Statements of Net Assets and Changes in Net Assets by Fund in the Loan Fund. Administrative Expenses and Investment Advisory Fees ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Administrative expenses such as record keeping fees are paid by the Companies. Investment advisory fees for portfolio management of Vanguard Funds are paid directly from fund earnings and will not reduce assets of the Plans. Investment advisory fees for the Fixed Income Fund are paid directly from the fund and will reduce assets of the Plans. The trust agreement entitles the Trustee to receive reasonable compensation for services rendered and expenses incurred in the administration and execution of the Plans. 3. DESCRIPTION OF THE PLANS ~~~~~~~~~~~~~~~~~~~~~~~~ Participation ~~~~~~~~~~~~~ Substantially all full-time, domestic employees of the Company and designated subsidiaries are eligible to participate in one of the Plans on the first day of the month following the 60th day after date of employment. Nonresident aliens employed by the Company or a foreign subsidiary are eligible to participate if the Company owns at least 80 percent of the foreign subsidiary's common stock. The Plans encourage voluntary savings through regular payroll deductions. Subject to limitations contained in the Internal Revenue Code and Regulations, participants may contribute up to 15 percent of gross pay (10 percent with respect to certain highly compensated participants) as pre- tax contributions, and 10 percent of gross pay as after-tax contributions (not to exceed 20% in total). In addition, participants are permitted to make voluntary additional after-tax contributions once each year. At the end of each plan year, the Companies make matching contributions for each participant's pre-tax and after-tax contributions that remain in the Plans at the end of the plan year. The formulas for these matches, as set forth in the Plans, vary for each Company (see Schedule II). Certain groups of participants receive cash matches and other groups participate in the ESOP (as described below) and receive matching contributions in the form of Company common stock. All matching cash contributions, ESOP shares, and earnings thereon are immediately vested and nonforfeitable. In July 1989, the Company established the ESOP Trust and sold 2,362,206 of its common stock at $31.75 per share (amounts reflect two-for-one common stock split) to the ESOP Trust in exchange for a $75 million promissory note (the Note) secured by the shares. In December 1990, the ESOP Trust prepaid its then-current indebtedness to the Company with proceeds from the issuance of $72,750,000 of 8.76 percent ESOP Notes due 1998 and guaranteed by the Company (see Note 6). The arrangement requires the Companies to contribute an aggregate annual amount to the ESOP Trust equal to the annual principal and interest payable under the terms of the Note after application of dividends paid on shares held in the ESOP Trust. As the ESOP Trust's indebtedness is repaid from these sources of funds, shares are allocated to the accounts of participants in the ESOP in relative proportion to each participant's contributions to the Plans as well as dividends received on shares previously allocated to the participant's account in the ESOP Trust. For the 1993 plan year, 458,161 shares were allocated and 1,867,028 remain unallocated in the ESOP Trust. On October 12, 1993, the Company announced a two-for- one common stock split that was distributed on November 11, 1993, to shareholders of record on October 25, 1993. All references to the number of shares have been adjusted to reflect the stock split on a retroactive basis. Participant and Company cash matching contributions are deposited in the Trust and then invested in the five investment funds in accordance with participant elections. Account balances and contributions can be invested in one or more of the five investment funds in multiples of 10 percent. Investment direction can be changed once each month. Common stock account balances in the ESOP account can not be redirected. Investment experience is allocated to participant accounts on a monthly basis. Plan Withdrawals ~~~~~~~~~~~~~~~~ Participants are permitted to withdraw their after-tax contributions, the Company cash matching contributions for their after-tax contributions, and accumulated earnings thereon. Participants are also permitted to take out loans (see Note 2). In the event of financial hardship, participants are permitted to withdraw pre-tax contributions and accumulated earnings thereon. Each hardship withdrawal request, including proof of financial hardship, is reviewed individually by the Plans' Administrator. In-service withdrawals from the ESOP account are prohibited under any circumstance. Plan Payouts ~~~~~~~~~~~~ Upon termination of employment, immediate distribution is made to those participants with account balances less than or equal to $3,500. Terminating participants with account balances greater than $3,500 must consent to any payment prior to the attainment of age 65. Participants who do not consent to immediate distribution may subsequently elect in writing to begin receiving benefits as soon as is practical, provided that in any event the distribution commences no later than April 1 of the Plan year following the Plan year in which age 70 1/2 occurs. Account balances remaining in the Plans will continue to share in the earnings of the investments prior to distribution. Distributions from the ESOP portion of the Plans are in whole shares of stock allocated to participant accounts, with cash for partial shares unless participants elect to receive the entire distribution in cash at current market value. 4. PLAN AMENDMENTS ~~~~~~~~~~~~~~~ Effective April 1, 1992, Kuss union employees became eligible to participate in the Bargaining Plan. Effective May 1, 1992, the pre-tax match for Diesel ReCon Los Angeles union employees was revised to $.50 per $1.00 contributed up to 4 percent (up from 3 percent) of gross pay. 5. TAX STATUS ~~~~~~~~~~ The Company is currently relying on the favorable determinations received for the Cummins Engine Company, Inc. and Affiliates Qualified Savings Plans, the Onan Retirement Savings Plan, and the Cummins Engine Company, Inc. and Affiliates Deferred Income Plans for the qualified and exempt status of the Plans. The Company intends to request the Internal Revenue Service to issue separate determination letters for the Plans. The Plans' Administrator and the Plans' Tax Counsel believe that the Plans are currently designed and being operated in compliance with applicable requirements of the Internal Revenue Code. Therefore they believe that the Plans are qualified and the related trusts are tax exempt. 6. LONG-TERM DEBT ~~~~~~~~~~~~~~ The ESOP Trust has issued $72,750,000 of ESOP Notes due 1998 with an annual interest rate of 8.76 percent payable semi-annually to the Note holders (see Note 3). Principal payments of $1.2 million, $1.4 million, $1.5 million, $1.6 million, and $1.7 million are due in 1994, 1995, 1996, 1997, and 1998 respectively. 7. PARTIES-IN-INTEREST TRANSACTIONS ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ There were no transactions with parties-in-interest (as defined in ERISA Section 3(14) and regulations under that section) during the plan years ended December 31, 1993 and 1992. 8. REPORTABLE TRANSACTIONS ~~~~~~~~~~~~~~~~~~~~~~~ There were no reportable transactions (as defined in ERISA Section 3(I) and regulations under that Section) during the year ended December 31, 1993. 9. SUBSEQUENT EVENTS ~~~~~~~~~~~~~~~~~ The Company stock price per share was $53.75 at December 31, 1993 and was $41.87 at June 10, 1994. SCHEDULE I (Page 1 of 2) CUMMINS ENGINE COMPANY, INC. AND AFFILIATES RETIREMENT AND SAVINGS PLANS EIN 35-0257090 ITEM 27 A: SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AS OF DECEMBER 31, 1993 DESCRIPTION SHARES COST MARKET VALUE ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ Salaried: Short-Term Investment Funds $ 328,685 $ 328,685 Guaranteed Investment Contracts 72,788,095 72,788,095 Wellington Fund 51,381,395 55,003,648 Vanguard U.S. Growth Fund 17,618,011 17,586,368 Vanguard Index Trust Fund 22,074,862 24,009,361 Cummins Engine Company, Inc. Common stock 2,455,456 77,947,883 131,980,775 Participant Loan Receivable 5,130,161 5,130,161 ~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ 2,455,456 247,269,092 306,827,093 ~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ Bargaining: Short-Term Investment Funds - - Guaranteed Investment Contracts 93,361,040 93,361,040 Wellington Fund 30,355,628 32,495,620 Vanguard U.S. Growth Fund 5,630,189 5,620,077 Vanguard Index Trust Fund 9,471,928 10,301,987 Cummins Engine Company, Inc. Common Stock 112,283 3,553,914 6,035,210 Participant Loan Receivable 3,517,829 3,517,829 ~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ 112,283 145,890,528 151,331,763 ~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ ONAN: Short-Term Investment Funds - - Guaranteed Investment Contracts 15,691,005 15,691,005 Wellington Fund 14,779,035 15,820,919 Vanguard U.S. Growth Fund 5,293,229 5,283,722 Vanguard Index Trust Fund 6,489,876 7,058,607 Cummins Engine Company, Inc. Common Stock 28,716 908,902 1,543,540 Participant Loan Receivable 1,599,264 1,599,264 ~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ 28,716 $44,761,311 $46,997,057 ~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ SCHEDULE I (Page 2 of 2) CUMMINS ENGINE COMPANY, INC. AND AFFILIATES RETIREMENT AND SAVINGS PLANS EIN 35-0257090 ITEM 27 A: SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AS OF DECEMBER 31, 1993 DESCRIPTION SHARES COST MARKET VALUE ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~ Lubricon: Short-Term Investment Funds $ - $ - Guaranteed Investment Contracts 103,310 103,310 Wellington Fund 151,314 161,980 Vanguard U.S. Growth Fund 48,128 48,042 Vanguard Index Trust Fund 35,483 38,593 Cummins Engine Company, Inc. Common stock 180 5,697 9,669 Participant Loan Receivable 12,143 12,143 ~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ 180 356,075 373,737 ~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ CDC: Short-Term Investment Funds - - Guaranteed Investment Contracts 4,950,119 4,950,119 Wellington Fund 2,586,900 2,769,269 Vanguard U.S. Growth Fund 1,052,300 1,050,410 Vanguard Index Trust Fund 1,486,144 1,616,380 Cummins Engine Company, Inc. Common Stock 11,357 359,465 610,445 Participant Loan Receivable 746,443 746,443 ~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ 11,357 11,181,371 11,743,066 ~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ TOTAL: Short-Term Investment Funds 328,685 328,685 Guaranteed Investment Contracts 186,893,569 186,893,569 Wellington Fund 99,254,272 106,251,436 Vanguard U.S. Growth Fund 29,641,857 29,588,619 Vanguard Index Trust Fund 39,558,293 43,024,928 Cummins Engine Company, Inc. Common Stock 2,607,992 82,775,861 140,179,639 Participant Loan Receivable 11,005,840 11,005,840 ~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ 2,607,992 $449,458,377 $517,272,716 ~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~ SCHEDULE II ~~~~~~~~~~~ CUMMINS ENGINE COMPANY, INC. AND AFFILIATES RETIREMENT AND SAVINGS PLANS SCHEDULE OF MATCHING CONTRIBUTION FORMULAS AS OF DECEMBER 31, 1993 LOC CASH ESOP STOCK EMPLOYING COMPANY CODE LOCATION NAME CONTRIBUTIONS CONTRIBUTION ~~~~~~~~~~~~~~~~~ ~~~~ ~~~~~~~~~~~~~ ~~~~~~~~~~~~~ ~~~~~~~~~~~~ Cummins Engine Company 110 Columbus Exempt No Yes(1)(2) " 120 Columbus DWU Yes(3)(4) No " 121 Walesboro DWU Yes(5)(6) No " 130 Columbus OCU Yes(3)(4) No " 131 OCU New Hires Yes(5) No " 132 Walesboro OCU Yes(5)(6) No " 135 Cols. Security No Yes(1)(2) " 136 Cols Sec New Hires Yes(4)(5) No Cummins Electronics 150 CELCO Union Yes(13)(6) No " 160 CELCO Exempt No Yes(1)(7) Cum.Military Systems 170 Cummins Military No No CADEC 190 CADEC Yes(13) No Cummins Engine Company 200 Charleston No Yes(1)(2) Combustion Technologies 210 CTI Georgia No Yes(1)(2) " 220 CTI Charleston No Yes(1)(2) Cummins Engine Company 240 CHS Headline No Yes(1)(2) " 250 CHS Recon No Yes(1)(2) " 260 CHS Engr. Svcs. No Yes(1)(2) McCord Heat Transfer 270 CHS McCord Heat No Yes (8) Transfer Cummins Engine Company 280 Precision Gear No Yes(1)(2) HPI 290 HPI No Yes(1)(2) Cummins Engine Company 291 Cummins Marine No Yes(1)(2) " 292 CHS Tool Svc. No Yes(1)(2) " 293 Kinetco No Yes(1)(2) " 300 Jamestown No Yes(1)(2) " 301 JEP New Hires Yes(5)6) No Cummins Natural Gas * 390 Cummins Natural Yes(13)(16 No Engine Gas Cummins Americas, Inc. 400 Miami PDC No Yes(1)(2) McCord Heat Transfer 430 McCord Wall Lake No Yes(8) 440 McCord Canton No Yes(8) Atlas Crankshaft 500 Atlas Salaried No Yes(1)(2) " 501 Atlas Corporate No Yes(1)(2) " ** 510 Atlas Union Yes(4) No Onan Corporation 550 Onan MN Salaried Yes(11) Yes(10) " 551 Onan Huntsville Yes(11) Yes(10) " 552 Onan OPE Salaried Yes(11) Yes(10) Fleetguard, Inc. 600 Fleetguard TN No Yes(1)(2) Salaried " 610 Fleetguard Lake No Yes(1)(2) Mills Salaried " 620 Fleetguard Lake No Yes(1)(2) Mills Hourly " 630 Fleetguard TN Hr Yes(12) No Lubricant Consultants 640 Lubricon Yes(14) No Kuss 650 Kuss Salaried No Yes(1)(2) Kuss 651 Kuss Union No Yes(1)(2) Fleetguard, Inc. 655 Separation Tech. No Yes(1)(2) Cummins Engine Company 700 DRC Salaried No Yes(1)(2) " * 720 DRC TN Union Yes(13) No " * 730 DRC LA Union Yes(15) No " * 740 DRC LA Union Yes(15) No " 750 Cum. Tool Svc. No Yes(1)(2) Cummins Diesel Intl. 810 CDIL No Yes(1)(2) Consolidated Diesel Co. 900 Consol. Diesel Co. Yes(13)(9) No Holset Engr. Company 950 Holset MI No Yes(1)(2) " 951 Holset CHS No Yes(1)(2) Cummins Engine Company 960 Cum O-T-A No Yes(1)(2) *Participants at locations 390, 720, 730 and 740 are not eligible to make Basic Savings Contributions. **Participants at location 510 are not eligible to make Pre-Tax Contributions. Matching Contribution Legend ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ( 1) ESOP Stock Contribution based on 50% of 1st 2% of pay contributed as a Pre-Tax Contribution. ( 2) ESOP Stock Contribution based on 50% of 1st $900 of pay contributed as a Basic Savings Contribution. ( 3) Cash Contribution of 50% (up to a maximum of $325) of 1st 2% of pay contributed as a Pre-tax Contribution. ( 4) Cash Contribution of 50% of the 1st $900 of pay contributed as a Basic Savings Contribution. ( 5) Cash Contribution of $325 per year to Pre-Tax Contribution account, regardless of % of pay contributed. ( 6) Cash Contribution of 100% on 1st $450 of pay contributed as a Basic Savings Contribution. ( 7) ESOP Stock Contribution based on 100% of 1st $900 of pay contributed as a Basic Savings Contribution. ( 8) ESOP Stock Contribution based on 100% of the 1st 2.5% of pay contributed as a Pre-Tax Contribution. ( 9) Cash Contribution based on 50% (up to a maximum of $900) on 1st $1,800 of pay contributed as a Basic Savings Contribution. (10) ESOP Stock Contribution based on 100% of 1st $250, 75% of next $250, 50% of next $1,000, and 25% of next $1,000 (maximum stock match = $1,187.50). NOTE: Applies to Pre-Tax Contributions. (11) Cash Contribution of 25% of the 1st $1,000 of pay contributed as a Basic Savings Contribution. (12) Cash Contribution of 50% of the 1st 2% of pay contributed as a Pre-Tax Contribution with a minimum of $200 if at least 2% is contributed. (13) Cash Contribution of 50% of 1st 2% of pay contributed as a Pre-Tax Contribution. (14) Cash Contribution of 100% of 1st 2.5% of pay contributed as a Pre-Tax Contribution. (15) Cash Contribution of 50% of 1st 4% of pay contributed as a Pre-Tax Contribution. (16) Discretionary Cash Contribution. SIGNATURES ~~~~~~~~~~ Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. CUMMINS ENGINE COMPANY, INC. RETIREMENT AND SAVINGS PLAN ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ (Name of Plan) By /s/ Carol K. Smalley ~~~~~~~~~~~~~~~~~~~~~~~~ Carol K. Smalley Secretary - Pension Policy Committee EX-23 2 EXHIBIT 23 FOR 11-K REPORT EXHIBIT 23 CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ As independent public accountants, we hereby consent to the incorporation of our report dated June 10, 1994, included in this Form 11-K, into the Company's previously filed Registration Statement File Nos. 2-32091, 2-53247, 2-58696, 33-2161, 33-8842, 33-31095, 33-37690, 33-46096, 33-46097, 33-46098 and 33-50665. ARTHUR ANDERSEN & CO. Chicago, Illinois June 23, 1994 -----END PRIVACY-ENHANCED MESSAGE-----