-----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, tfStxJ3SdjSEwhMEYIIN6Yudb2NwXIgBAiMjJXVdHkPH9oNOzcZJMBhlXSi/YK1k YQRgEPSO1BPTRYVNqfWn8A== 0000950129-94-000024.txt : 19940119 0000950129-94-000024.hdr.sgml : 19940119 ACCESSION NUMBER: 0000950129-94-000024 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19930930 FILED AS OF DATE: 19940118 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DANIEL INDUSTRIES INC CENTRAL INDEX KEY: 0000026821 STANDARD INDUSTRIAL CLASSIFICATION: 3823 IRS NUMBER: 741547355 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 11-K SEC ACT: 34 SEC FILE NUMBER: 001-06098 FILM NUMBER: 94501584 BUSINESS ADDRESS: STREET 1: 9753 PINE LAKE DR CITY: HOUSTON STATE: TX ZIP: 77055 BUSINESS PHONE: 7134676000 11-K 1 DANIEL INDUSTRIES, INC. FORM 11-K 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 SEPTEMBER 30, 1993 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 1-6098 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: DANIEL INDUSTRIES, INC. EMPLOYEES' PROFIT SHARING AND SAVINGS PLAN B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: DANIEL INDUSTRIES, INC. 9753 PINE LAKE DRIVE HOUSTON, TEXAS 77055 ================================================================================ 2 SIGNATURES The Plan. 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. DANIEL INDUSTRIES, INC. EMPLOYEES' PROFIT SHARING AND SAVINGS PLAN By /s/ LARRY G. IRVING ______________________________________ Larry G. Irving Date January 11, 1994 Member of the Administrative Committee By /s/ BELA VACZI ______________________________________ Bela Vaczi Date January 11, 1994 Member of the Administrative Committee By /s/ MICHAEL R. YELLIN ______________________________________ Michael R. Yellin Date January 11, 1994 Member of the Administrative Committee
-2- 3 REPORT OF INDEPENDENT ACCOUNTANTS TO THE MEMBERS AND ADMINISTRATIVE COMMITTEE OF THE DANIEL INDUSTRIES, INC. EMPLOYEES' PROFIT SHARING AND SAVINGS PLAN In our opinion, the accompanying statements of financial condition and the related statements of income and changes in plan equity present fairly, in all material respects, the financial position of the Daniel Industries, Inc. Employees' Profit Sharing and Savings Plan at September 30, 1993 and 1992, and the results of its operations and the changes in its plan equity for each of the three years in the period ended September 30, 1993, in conformity with generally accepted accounting principles. These financial statements are the responsibility of the Plan's Administrative Committee; 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 made for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information included in the accompanying Schedules 1 and 2 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. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. PRICE WATERHOUSE Houston, Texas December 20, 1993 -3- 4 DANIEL INDUSTRIES, INC. EMPLOYEES' PROFIT SHARING AND SAVINGS PLAN STATEMENT OF FINANCIAL CONDITION
SEPTEMBER 30, 1993 ---------------------------------------------------------------------------- FIXED DISCRETIONARY EQUITY INCOME CASH COMPANY EMPLOYER ASSETS ASSETS EQUIVALENTS STOCK CONTRIBUTION FUND FUND FUND FUND ACCOUNT TOTAL --------- --------- --------- --------- ---------- ---------- ASSETS Investments at fair market value: Daniel Industries, Inc. common stock (456,416 shares at cost of $2,175,681)...... $ -- $ -- $ -- $2,467,039 $4,436,253 $6,903,292 Cash equivalents (cost is equivalent to market value).... 71,192 244,423 1,335,963 13,352 254,879 1,919,809 Fixed income assets (cost of $12,537,176)..... -- 2,368,875 -- -- 12,327,260 14,696,135 Equity assets (cost of $9,059,536)... 2,846,913 -- -- -- 8,297,400 11,144,313 --------- --------- --------- --------- ---------- ---------- Total investments at fair market value... 2,918,105 2,613,298 1,335,963 2,480,391 25,315,792 34,663,549 Employee contributions receivable.......... 37,775 32,843 18,113 12,083 -- 100,814 Employer contributions receivable.......... -- -- -- 21,276 765,000 786,276 Accrued interest and dividends........... 2,214 41,118 3,430 16 212,050 258,828 ---------- ---------- ---------- ---------- ----------- ----------- Total assets $2,958,094 $2,687,259 $1,357,506 $2,513,766 $26,292,842 $35,809,467 ---------- ---------- ---------- ---------- ----------- ----------- ---------- ---------- ---------- ---------- ----------- ----------- PLAN EQUITY Plan equity........... $2,958,094 $2,687,259 $1,357,506 $2,513,766 $26,292,842 $35,809,467 ---------- ---------- ---------- ---------- ----------- ----------- ---------- ---------- ---------- ---------- ----------- -----------
The accompanying notes are an integral part of the financial statements. -4- 5 DANIEL INDUSTRIES, INC. EMPLOYEES' PROFIT SHARING AND SAVINGS PLAN STATEMENT OF FINANCIAL CONDITION
SEPTEMBER 30, 1992 ---------------------------------------------------------------------------- FIXED DISCRETIONARY EQUITY INCOME CASH COMPANY EMPLOYER ASSETS ASSETS EQUIVALENTS STOCK CONTRIBUTION FUND FUND FUND FUND ACCOUNT TOTAL --------- --------- --------- --------- ---------- ---------- ASSETS Investments at fair market value: Daniel Industries, Inc. common stock (455,223 shares at cost of $2,154,826)...... $ -- $ -- $ -- $1,963,244 $3,556,335 5,519,579 Cash equivalents (cost is equivalent to market value).... 140,188 234,687 1,426,403 141 36,643 1,838,062 Fixed income assets (cost of $12,902,760)..... -- 1,901,771 -- -- 12,538,929 14,440,700 Equity assets (cost of $7,761,916)... 2,343,719 -- -- -- 8,424,037 10,767,756 ---------- ---------- ---------- ---------- ----------- ----------- Total investments at fair market value... 2,483,907 2,136,458 1,426,403 1,963,385 24,555,944 32,566,097 Employee contributions receivable.......... 33,247 28,085 19,171 13,423 -- 93,926 Employer contributions receivable....... -- -- -- 19,836 800,000 819,836 Receivables from sales of securities....... 58,319 -- -- -- 238,537 296,856 Accrued interest, dividends and other receivables......... 3,760 35,179 3,916 82 247,238 290,175 ---------- ---------- ---------- ---------- ----------- ----------- Total assets.... $2,579,233 $2,199,722 $1,449,490 $1,996,726 $25,841,719 $34,066,890 ---------- ---------- ---------- ---------- ----------- ----------- ---------- ---------- ---------- ---------- ---------- ----------- PLAN EQUITY Plan equity........... $2,579,233 $2,199,722 $1,449,490 $1,996,726 $25,841,719 $34,066,890 ---------- ---------- ---------- ---------- ----------- ----------- ---------- ---------- ---------- ---------- ----------- -----------
The accompanying notes are an integral part of the financial statements. -5- 6 DANIEL INDUSTRIES, INC. EMPLOYEES' PROFIT SHARING AND SAVINGS PLAN STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
FISCAL YEAR ENDED SEPTEMBER 30, 1993 ---------------------------------------------------------------------------- FIXED DISCRETIONARY EQUITY INCOME CASH COMPANY EMPLOYER ASSETS ASSETS EQUIVALENTS STOCK CONTRIBUTION FUND FUND FUND FUND ACCOUNT TOTAL ---------- --------- --------- --------- ---------- ---------- Investment income: Cash dividends on Daniel Industries, Inc. common stock.. $ -- $ -- $ -- $ 29,467 $ 52,795 $ 82,262 Other cash dividends.......... 29,439 -- -- -- 99,296 128,735 Interest............ 5,521 160,710 45,681 1,500 921,384 1,134,796 ---------- ---------- ---------- ---------- ----------- ----------- Net investment income.......... 34,960 160,710 45,681 30,967 1,073,475 1,345,793 Net realized gain on sale of investments: Daniel Industries, Inc. common stock........... -- -- -- 12,650 -- 12,650 Other investments..... 66,562 -- -- -- 1,335,643 1,402,205 Unrealized appreciation (depreciation) of: Daniel Industries, Inc. common stock........... -- -- -- 482,940 879,918 1,362,858 Other investments..... 42,394 111,385 -- -- (453,823) (300,044) ---------- ---------- ---------- ---------- ----------- ----------- Total...... 143,916 272,095 45,681 526,557 2,835,213 3,823,462 Contributions: Participating employees....... 448,131 367,700 220,537 150,805 -- 1,187,173 Participating employers....... -- -- -- 250,159 765,000 1,015,159 Rollover from qualifed plan... 4,647 9,293 4,647 -- -- 18,587 Member distributions...... (296,705) (307,270) (279,639) (269,100) (3,149,090) (4,301,804) Member account transfers among funds.............. 78,872 145,719 (83,210) (141,381) -- -- Plan equity at beginning of period............. 2,579,233 2,199,722 1,449,490 1,996,726 25,841,719 34,066,890 ---------- ---------- ---------- ---------- ----------- ----------- Plan equity at end of period............. $2,958,094 $2,687,259 $1,357,506 $2,513,766 $26,292,842 $35,809,467 ---------- ---------- ---------- ---------- ----------- ----------- ---------- ---------- ---------- ---------- ----------- -----------
The accompanying notes are an integral part of the financial statements. -6- 7 DANIEL INDUSTRIES, INC. EMPLOYEES' PROFIT SHARING AND SAVINGS PLAN STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
FISCAL YEAR ENDED SEPTEMBER 30, 1992 ---------------------------------------------------------------------------- FIXED DISCRETIONARY EQUITY INCOME CASH COMPANY EMPLOYER ASSETS ASSETS EQUIVALENTS STOCK CONTRIBUTION FUND FUND FUND FUND ACCOUNT TOTAL --------- --------- --------- --------- ---------- ---------- Investment income: Cash dividends on Daniel Industries, Inc. common stock........... $ -- $ -- $ -- $ 28,439 $ 52,796 $ 81,235 Other cash dividends....... 27,214 -- -- -- 99,921 127,135 Interest........... 7,941 129,694 62,333 2,352 996,488 1,198,808 ---------- ---------- ---------- ---------- ----------- ----------- Net investment income....... 35,155 129,694 62,333 30,791 1,149,205 1,407,178 Net realized gain on sale of investments: Daniel Industries, Inc. common stock........... -- -- -- 1,577 -- 1,577 Other investments..... 141,991 1,876 -- -- 940,758 1,084,625 Unrealized appreciation (depreciation) of: Daniel Industries, Inc. common stock........... -- -- -- (785,873) (1,503,817) (2,289,690) Other investments..... (33,379) 90,945 -- -- 471,727 529,293 ---------- ---------- ---------- ---------- ----------- ----------- Total...... 143,767 222,515 62,333 (753,505) 1,057,873 732,983 Contributions: Participating employees....... 370,512 321,418 242,795 172,237 -- 1,106,962 Participating employers....... -- -- -- 235,736 800,000 1,035,736 Member reinstatements... -- -- -- -- 786 786 Member distributions...... (85,006) (40,160) (118,637) (135,217) (1,767,939) (2,146,959) Member account transfers among funds.............. (21,317) 219,254 (115,285) (82,652) -- -- Transfer from other plan............... -- -- -- -- 25,750,999 25,750,999 Plan equity at beginning of period............. 2,171,277 1,476,695 1,378,284 2,560,127 -- 7,586,383 ---------- ---------- ---------- ---------- ----------- ----------- Plan equity at end of period............. $2,579,233 $2,199,722 $1,449,490 $1,996,726 $25,841,719 $34,066,890 ---------- ---------- ---------- ---------- ----------- ----------- ---------- ---------- ---------- ---------- ----------- -----------
The accompanying notes are an integral part of the financial statements. -7- 8 DANIEL INDUSTRIES, INC. EMPLOYEES' PROFIT SHARING AND SAVINGS PLAN STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
FISCAL YEAR ENDED SEPTEMBER 30, 1991 ------------------------------------------------------------- FIXED EQUITY INCOME CASH COMPANY ASSETS ASSETS EQUIVALENTS STOCK FUND FUND FUND FUND TOTAL ---------- --------- --------- --------- --------- Investment income: Cash dividends on Daniel Industries, Inc. common stock.................. $ -- $ -- $ -- $ 25,288 $ 25,288 Other cash dividends............. 24,034 -- -- -- 24,034 Interest................. 10,511 106,271 91,375 5,176 213,333 ---------- ---------- ---------- ---------- ---------- Net investment income.... 34,545 106,271 91,375 30,464 262,655 Net realized loss on sale of investments............. (33,785) -- -- -- (33,785) Unrealized appreciation of: Daniel Industries, Inc. common stock.............. -- -- -- 43,417 43,417 Other investments........ 632,289 87,028 -- -- 719,317 ---------- ---------- ---------- ---------- ---------- Total......... 633,049 193,299 91,375 73,881 991,604 Contributions: Participating employees............ 321,205 264,177 276,215 168,728 1,030,325 Participating employers............ -- -- -- 224,621 224,621 Member distributions........ (255,823) (115,188) (157,473) (234,008) (762,492) Member account transfers among funds................ (41,108) 13,192 (25,467) 53,383 -- Plan equity at beginning of period............... 1,513,954 1,121,215 1,193,634 2,273,522 6,102,325 ---------- ---------- ---------- ---------- ---------- Plan equity at end of period....... $2,171,277 $1,476,695 $1,378,284 $2,560,127 $7,586,383 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
The accompanying notes are an integral part of the financial statements. -8- 9 NOTES TO FINANCIAL STATEMENTS NOTE 1 -- PLAN MERGER The Daniel Industries, Inc. Employees' Savings Plan (the "Savings Plan") was initially established effective October 1, 1982, as a stock purchase plan and was amended to become a pre-tax savings plan effective April 1, 1984. The Savings Plan was amended from time to time to reflect certain changes in the Internal Revenue Code, as amended (the "Code"). The Daniel Industries, Inc. Employees' Profit Sharing and Retirement Plan (the "Profit Sharing Plan") was initially established effective September 30, 1953. The Profit Sharing Plan was amended from time to time to reflect certain changes in the Code. Effective October 1, 1991, in order to administer more efficiently the benefits provided under the plans, thereby reducing administrative costs, the Profit Sharing Plan was merged into the Savings Plan. As a result of the merger of the former plans, net assets of $25,750,999 were transferred into the Savings Plan. The Savings Plan was thereafter called the Daniel Industries, Inc. Employees' Profit Sharing and Savings Plan (the "Plan"). NOTE 2 -- DESCRIPTION OF THE PLAN The following description provides only general information relating to the Plan, following the merger of the plans referred to above, and is qualified by the terms of the Plan. Capitalized terms which are not otherwise defined herein are defined in the Plan. Members should refer to the Summary Plan Description of each -9- 10 of the prior plans or the Plan document for a more complete explanation of the Plan's provisions. The Plan document is controlling at all times. Participation The Plan is a defined contribution plan in which each employee of Daniel Industries, Inc. (the "Company"), Daniel Flow Products, Inc., Daniel En-Fab Systems, Inc., Daniel Industrial, Inc. (formerly Daniel Bolt & Gasket, Inc. and Daniel Flange Company), Daniel Oil Tools Company and Daniel Valve Company (together with the Company, the "Employers") is initially eligible to participate on the Entry Date (October 1, the first day of the Plan Year) coincident with or next following the date such employee was first employed by an Employer. Effective October 1, 1992, Daniel Flange Company, Inc. and Daniel Bolt and Gasket, Inc. were merged into a new company, Daniel Industrial, Inc. On that date, all employees at Daniel Industrial, Inc. either continued to participate or became eligible to participate in the Plan. Contributions The Plan provides for Discretionary Employer Contributions in such amount, if any, that shall be determined by the Employers. These contributions are allocated to Active Members in the proportion which the Considered Compensation of each such Member for the Plan Year bears to the total Considered Compensation of all such Members for that Plan Year. -10- 11 A summary of Discretionary Employer Contributions for the Plan Year ended September 30, 1993 is as follows:
DISCRETIONARY EMPLOYER CONTRIBUTIONS FOR PLAN YEAR ENDED SEPTEMBER 30, EMPLOYER 1993 ------------------------------------------------------------- -------- Daniel Industries, Inc. and Daniel Flow Products, Inc........ $495,000 Daniel Industrial, Inc....................................... 50,000 Daniel En-Fab Systems, Inc................................... 60,000 Daniel Valve Company......................................... 160,000 -------- $765,000 -------- --------
- --------------- NOTE: The Discretionary Employer Contributions to the Plan for the Plan Year ended September 30, 1992 and employer contributions to the Profit Sharing Plan for the Plan Year ended September 30, 1991 totalled $800,000 and $800,000, respectively. Further, an eligible employee may choose, by completing and returning to the Administrative Committee of the Plan (the "Administrative Committee") a Salary Deferral Agreement, to authorize his Employer to reduce his Considered Compensation by a certain amount and to contribute on his behalf such amount to a trust (the "Trust") created under the Plan. The maximum reduction in compensation that an employee participating in the Plan may elect for contribution to the Plan is determined by the Administrative Committee; the nontaxable portion of each employee's annual salary deferral contribution is limited to the maximum amount permitted by the Secretary of the Treasury ($8,994 for the 1993 calendar year). In addition, such contributions by eligible employees who are "highly compensated employees" (within the meaning of Section 414(q) of the Code) are subject to nondiscrimination limitations that are affected by contributions made by all other eligible employees. -11- 12 Employers make contributions ("Salary Deferral Contributions") for each Member employed by such Employer in amounts equal to the amount by which each such Member's Considered Compensation was reduced pursuant to his Salary Deferral Agreement. In addition, each Employer is required to make a matching contribution (an "Employer Matching Contribution") for each Member employed by such Employer in an amount equal to the lesser of 1.5% of such Member's Considered Compensation or 25% of the Salary Deferral Contributions made by such Employer for such Member. Under certain circumstances, a Member may make additional Rollover Contributions and Voluntary Employee Contributions to the Trust. Effective October 1, 1993, the Plan was amended to change the Employer Matching Contribution from the lesser of 1.5% of a Member's Considered Compensation or 25% of the Member's Salary Deferral Contributions, to the lesser of 1.5% of a Member's Considered Compensation or 50% of the Member's Salary Deferral Contributions. Salary Deferral Contributions, Employer Matching Contributions and Discretionary Employer Contributions made on behalf of each Member are credited to the Member's Salary Deferral Contribution Account, Employer Matching Contribution Account and Discretionary Employer Contribution Account, respectively. Each of such Accounts reflects the contributions, and the appreciation or depreciation in the value of the Trust Fund, allocated to such Account. A Member's Discretionary Employer Contribution Account, Salary Deferral Contribution Account, Employer Matching Contribution Account, -12- 13 Rollover Contribution Account and Voluntary Employee Contribution Account are referred to collectively as a Member's Accounts. A summary of Members' Salary Deferral Contributions and a summary of Employer Matching Contributions for the Plan Year ended September 30, 1993, 1992 and 1991 are as follows:
MEMBERS' SALARY DEFERRAL CONTRIBUTIONS FOR PLAN YEARS ENDED SEPTEMBER 30, ------------------------------------- EMPLOYER 1993 1992 1991 - ------------------------------------------------------- --------- --------- --------- Daniel Industries, Inc................................. $ 142,500 $ 123,077 $ 119,285 Daniel Industrial, Inc................................. 68,256 64,537 76,611 Daniel En-Fab Systems, Inc............................. 69,695 75,086 77,308 Daniel Flow Products, Inc.............................. 668,987 604,840 535,239 Daniel Oil Tools Company............................... -- 7,282 22,307 Daniel Valve Company................................... 237,735 232,140 199,575 ---------- ---------- ---------- $1,187,173 $1,106,962 $1,030,325 ---------- ---------- ---------- ---------- ---------- ----------
EMPLOYER MATCHING CONTRIBUTIONS FOR PLAN YEARS ENDED SEPTEMBER 30, ------------------------------------- EMPLOYER 1993 1992 1991 - ------------------------------------------------------- --------- --------- --------- Daniel Industries, Inc................................. $ 28,932 $ 25,309 $ 26,689 Daniel Industrial, Inc................................. 15,718 16,138 19,152 Daniel En-Fab Systems, Inc............................. 15,190 16,825 17,751 Daniel Flow Products, Inc.............................. 138,244 124,738 111,704 Daniel Oil Tools Company............................... -- 1,821 5,578 Daniel Valve Company................................... 52,075 50,905 43,747 --------- --------- --------- $ 250,159 $ 235,736 $ 224,621 --------- --------- --------- --------- --------- ---------
Investments The Plan provides for assets that are held by the Plan as a result of Discretionary Employer Contributions and Voluntary Employee Contributions to be invested and reinvested in investments specified in the Plan document. The Plan further provides that assets held by the Plan as a result of Salary Deferral Contributions and Rollover Contributions shall be invested and reinvested in one or more of four investment funds: Equity Assets -13- 14 Fund, Fixed Income Assets Fund, Cash Equivalents Fund and Company Stock Fund. These funds are limited to certain categories of investments specified in the Plan document. The assets in each of these four funds may be held temporarily in cash or cash equivalents. Earnings from investments for each quarter are allocated among the Members' accounts in the proportion which the balance of each Member in each account at the beginning of the quarter bears to the total of all Members' balances in each such account at the beginning of the quarter. All amounts allocated to a Member's Employer Matching Contribution Account are invested in the Company Stock Fund. Each Member is required to designate the percentage of his share of Salary Deferral Contributions and Rollover Contributions to be invested in each fund. The percentage to be invested in any fund must be 0%, 25%, 50%, 75% or 100%. A Member has the right to change the percentage of his share of Salary Deferral Contributions to be invested in a particular fund once during any calendar quarter. In addition, a Member has the right to change the percentage of the then present interest in his Salary Deferral Contribution Account and his Rollover Contribution Account that is invested in the respective funds once during any calendar quarter. These rights may be exercised by notifying the Administrative Committee in writing, but need not be exercised simultaneously. Any such change is effective on the first day of the calendar quarter to occur not less than 15 days following receipt of appropriate written instructions by the Administrative Committee. -14- 15 As Employer Matching Contributions are allocated to the Company Stock Fund, all Members become participants in such fund. Members may participate in all four funds simultaneously. Vesting A Member is always 100% vested in all of his Accounts except his Discretionary Employer Contribution Account. For all Members with an employment date which occurred on or before September 30, 1989, the balance in the Discretionary Employer Contribution Account vests with each of the Members in 10% annual increments beginning with such Member's first employment anniversary date and continuing through the fourth employment anniversary date and in 20% annual increments beginning with such Member's fifth employment anniversary date. For all Members with an employment date occurring after September 30, 1989, the balance in the Discretionary Employer Contribution Account vests with each of those Members in 20% annual increments beginning with such Member's third employment anniversary date. Accordingly, in both those cases, Members are fully vested at the end of seven years. A Member's interest in the Discretionary Employer Contribution Account also becomes fully vested upon retirement or upon death or Separation on account of Total and Permanent Disability. Non-vested amounts are forfeited upon termination of employment and are used to restore any accounts required to be restored. Any excess forfeited balances at the end of the Plan Year are allocated to remaining Members on the same basis used to allocate Discretionary Employer Contributions of the Employers as described above. -15- 16 Distributions and Withdrawals Upon the death, Total and Permanent Disability, or retirement of a Member, or his termination of employment with his Employer, such Member or his validly designated Beneficiary is entitled to the vested interest of the amount in the Member's Accounts as of the end of the calendar quarter immediately following the date of such Member's death, or other Separation. Each Member who has completed five years of Vesting Service and who has given written notice to the Administrative Committee may withdraw, as of the end of the calendar quarter next following such notice, a specified amount of his Discretionary Employer Contribution Account, but not in excess of 25% of his vested interest in such account. The number of such withdrawals available to a Member is limited to one, prior to his completion of ten years of Vesting Service, and one subsequent to his completion of ten years of Vesting Service. A Member who is suffering a qualifying financial hardship may file a written request with the Administrative Committee to withdraw from his Salary Deferral Contribution Account, Employer Matching Contribution Account and Rollover Contribution Account an amount necessary to ease his hardship. However, a Member is not entitled to make a financial hardship withdrawal of any earnings credited to the Member's Salary Deferral Contribution Account or of any Employer Matching Contributions or earnings credited to the Member's Employer Matching Contribution Account after December 31, 1988. -16- 17 A Member who has reached age 60 and has completed 25 years of service may withdraw an amount not in excess of the total balance in his Accounts, determined as of the end of the calendar quarter next following the date on which the written notice of his intent to make such a withdrawal is given to the Administrative Committee. Effective October 1, 1993, the Plan was amended to allow a Member who has reached age 55 and has completed 25 years of service to make one withdrawal of an amount not in excess of the total balance in his Accounts other than his Salary Deferral Contribution Account. Upon reaching age 60 and completing 25 years of service, a Member may make one withdrawal of an amount not in excess of the total balance in his Accounts (exclusive of any Account(s) from which he made a prior withdrawal pursuant to this amendment). Subject to the limitations established by Section 401(a)(9) of the Code, distributions are payable in accordance with the Member's choice in cash or in kind, or both, in any one or a combination of the following manners: (i) in one lump sum; or (ii) in substantially equal periodic installments for a specified number of years not to exceed the greater of (a) 25 years or (b) the life expectancy of the Member or the joint and last survivor life expectancy of the Member and his spouse or other Beneficiary or (c) such shorter period as may result from the allocation of losses to his Accounts. Trustee and Investment Manager The Trustee under the Plan is Wachovia Bank of North Carolina, N.A. The Trustee's duties are to maintain custody of the assets of the Trust Fund, to invest and reinvest the assets of the Trust Fund subject to the instructions of the Administrative Committee, and, in accordance with the provisions of the Plan, to render certain reports to the Administrative Committee. The Trustee is appointed by the Board of Directors of the Company and serves as Trustee under the terms of the agreement relating to the Trust and the Plan -17- 18 until the termination of the Trust, the resignation of the Trustee or the removal of the Trustee by the Board of Directors of the Company. The Trustee has the right to vote the shares of the Company's common stock and other securities held in the Trust Fund, subject to instruction by the Administrative Committee. J. & W. Seligman & Co. Incorporated ("Seligman"), the Plan's investment manager, makes investment decisions regarding all of the Plan's investments except the Cash Equivalents Fund, the Company Stock Fund, Daniel Industries, Inc. common stock and cash or cash equivalents. The investment manager is appointed by the Plan's Administrative Committee which reviews its performance. William C. Morris, a member of the Company's Board of Directors, is Chairman of the Board of Directors and President of Seligman. Termination of the Plan The Company currently intends to continue the Plan indefinitely, but it may terminate the Plan at any time, withdraw from the Plan, or amend it in whole or in part. Any Employer that has adopted the Plan may terminate the Plan with respect to itself by executing and delivering to the Trustee a notice of termination that specifies the date on which the Plan will terminate. If the Plan is terminated, all amounts credited to the Accounts of each Member will be paid to such Member or his Beneficiary after payment of all expenses and adjustments. -18- 19 NOTE 3 -- SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation of Financial Statements The financial statements of the Plan are prepared on the accrual basis of accounting. Investments Cash equivalents are stated at cost, which approximates market value. All other securities are stated at their quoted market price as of the close of the Plan Year. Any change in the market value of the common stock of the Company and other securities held is recorded in the Statement of Income and Changes in Plan Equity as an increase or decrease in net unrealized appreciation or depreciation at year end. Dividends and interest income are recorded when earned. Administrative Expenses During the Plan Year ended September 30, 1990, the Company began paying the Plan's Trustee and other administrative expenses. NOTE 4 -- MEMBER DISTRIBUTION OBLIGATIONS During the Plan Year ended September 30, 1992, the Plan changed its method of accounting for pending distribution payments to Members in order to recognize distributions only upon payment. The effect of this change on the Plan's financial statements was not material. -19- 20 Obligations for distribution payments to Members are as follows:
MEMBER DISTRIBUTIONS PAYABLE SEPTEMBER 30, ------------------------ 1993 1992 -------- -------- Equity Assets Fund.................................. $ 31,501 $ 52,840 Fixed Income Assets Fund............................ 42,403 49,043 Cash Equivalents Fund............................... 12,808 27,274 Company Stock Fund.................................. 35,175 42,702 Discretionary Employer Contribution Account......... 617,945 471,813 -------- -------- Total..................................... $739,832 $643,672 -------- -------- -------- --------
These obligations are reflected as liabilities in the Form 5500 Annual Return/Report of Employee Benefit Plan. NOTE 5 -- FEDERAL INCOME TAX STATUS Management believes that the Plan is qualified under Section 401(a), and, therefore, the trust is exempt from taxation under Section 501(a) of the Code. The Internal Revenue Service granted a favorable letter of determination to the Plan on August 7, 1992. Generally, contributions to a qualified plan are deductible by the Company when made; earnings of the trust are tax exempt and Members are not taxed on their benefits until withdrawn from the Plan and not rolled over into another qualified plan or individual retirement account. NOTE 6 -- UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS AND REALIZED GAINS (LOSSES) ON SALE OF INVESTMENTS Unrealized appreciation (depreciation) of investments and realized gains (losses) on the sale of investments are determined on a historical cost basis. For purposes of presenting such information in the Plan's Form 5500 Annual Return/Report of -20- 21 Employee Benefit Plan, the current value method is used. Under the current value method, net unrealized appreciation of investments and net realized losses on sale of investments of $3,182,963 and $(725,125), respectively, were incurred during the year ended September 30, 1993, as calculated and provided by the Plan's Trustee. NOTE 7 - PLAN HOLDINGS WHICH REPRESENT 5% OR MORE OF NET ASSETS Investments that represent 5% or more of the Plan's net assets are as follows:
SEPTEMBER 30, 1993 ------------- Wachovia Bank of North Carolina Short-term Investment Fund.................................................. $ 1,919,809 Daniel Industries, Inc. Common Stock.................... 6,903,292 U.S. Treasury Bonds 8.75% 11/15/08-03*.................. 2,713,898 U.S. Treasury Notes 8.50% 2/15/00....................... 6,236,843
- --------------- * Maturity date November 15, 2008. Callable on November 15, 2003. -21- 22 SCHEDULE 1 (1 of 5) DANIEL INDUSTRIES, INC. EMPLOYEES' PROFIT SHARING AND SAVINGS PLAN ITEM 27a -- SCHEDULE OF ASSETS HELD FOR INVESTMENT AS OF SEPTEMBER 30, 1993
(a) (b) (c) (d) (e) - ---- ------------------------------------------------------- -------- ---------- ---------- DESCRIPTION OF INVESTMENT INCLUDING MATURITY DATE, RATE OF INTEREST, COLLATERAL, IDENTITY OF ISSUE, PAR OR BORROWER, LESSOR MATURITY CURRENT OR SIMILAR PARTY VALUE COST VALUE ------------------------------------------------------- -------- ---------- ---------- DISCRETIONARY EMPLOYER CONTRIBUTION ACCOUNT COMMON STOCKS SHARES -------- American International Group Inc....................... 2,100 $ 163,007 $ 206,059 Amoco Corp ............................................ 3,000 167,805 173,250 Baker Hughes Inc ...................................... 7,000 163,170 164,500 Block H&R Inc ......................................... 3,000 118,415 114,000 Century Tel Enterprises Inc ........................... 5,000 147,800 138,125 Circus Circus Enterprises Inc ......................... 5,550 178,254 255,300 Cisco Systems Inc ..................................... 2,500 115,000 125,000 Coca Cola Co .......................................... 7,000 130,849 295,750 Comcast Corp .......................................... 5,000 126,130 155,625 Crown Cork & Seal Inc ................................. 3,500 138,830 125,125 * Daniel Industries, Inc ................................ 293,306 402,513 4,436,253 E M C Corp Mass ....................................... 4,500 144,833 160,313 Enron Corp ............................................ 5,000 145,875 175,000 First Data Corp ....................................... 7,000 167,156 273,000 Fisher Scientific Intl Inc ............................ 5,000 156,170 175,000 Forest Labs ........................................... 5,000 178,271 187,500 General Electric Co ................................... 2,000 189,724 191,750 Gillette Co ........................................... 3,000 171,014 172,500 Harley Davidson Inc ................................... 5,000 175,801 235,000 Home Depot Inc ........................................ 6,000 69,452 231,000 Illinois Tool Works Inc ............................... 6,000 188,519 231,750 Informix Corp ......................................... 5,000 110,000 117,500 Intel Corp ............................................ 3,000 169,963 212,250 International Game Technology ......................... 5,500 94,962 219,313 Interpublic Group Cos Inc ............................. 6,000 100,585 186,000 Keycorp ............................................... 5,000 202,800 189,375 MCI Communications Corp ............................... 6,000 169,734 165,750 Microsoft Corp ........................................ 2,000 133,000 165,000 NationsBank Corp ...................................... 3,500 171,773 180,250 Nucor Corp ............................................ 6,000 141,910 322,500 Office Depot .......................................... 7,500 161,458 252,188 Pitney Bowes Inc ...................................... 4,000 161,240 153,000 Raychem Corp .......................................... 4,000 124,290 170,500 Reynolds & Reynolds Co ................................ 4,500 169,020 177,188 Schering -- Plough Corp ............................... 2,500 162,650 164,688 Schlumberger Ltd ...................................... 2,000 131,620 133,250 Service Corp Intl ..................................... 5,000 119,050 124,375 Sigma Aldrich Corp .................................... 3,000 84,032 145,500 Telephone & Data Systems Inc .......................... 3,000 140,130 158,250
23 SCHEDULE 1 (2 of 5)
(a) (b) (c) (d) (e) - ---- ------------------------------------------------------- ------------- ---------- ---------- DESCRIPTION OF INVESTMENT INCLUDING MATURITY DATE IDENTITY OF ISSUE, RATE OF INTEREST, BORROWER, LESSOR COLLATERAL, PAR OR CURRENT OR SIMILAR PARTY MATURITY VALUE COST VALUE ------------------------------------------------------- -------------- ---------- ---------- Teleflex Inc .......................................... 5,000 149,675 163,750 Telefonos De Mexico L ADR ............................. 3,500 154,648 177,188 Time Warner Inc ....................................... 3,000 123,555 122,250 Tyco Labs Inc ......................................... 2,500 107,338 108,125 U S Healthcare Inc .................................... 2,400 120,300 121,800 United Healthcare Corp ................................ 1,600 103,303 109,800 UST, Inc .............................................. 5,000 69,429 134,375 Varity Corp ........................................... 4,500 152,708 161,438 Wheelabrator Technologies Inc ......................... 10,000 200,749 176,250 ---------- ---------- Total Common Stocks ............................. 7,168,510 12,733,653 ---------- ----------
GOVERNMENT AND GOVERNMENTAL AGENCY BONDS AND NOTES
DUE PRINCIPAL CURRENT RATE DATE AMOUNT COST VALUE ----- ------------ ----------- ----------- ----------- U.S. Treasury Bonds......... 8.00% 11/15/21 $ 250,000 $ 262,418 $ 306,602 U.S. Treasury Bonds......... 8.75% 11/15/08-03 2,000,000 1,995,625 2,467,180 U.S. Treasury Bonds......... 8.375% 08/15/08-03 500,000 491,094 600,705 U.S. Treasury Notes......... 8.00% 05/15/01 1,000,000 987,188 1,175,310 U.S. Treasury Notes......... 7.75% 02/15/01 500,000 507,813 578,280 U.S. Treasury Notes......... 8.375% 04/15/95 800,000 793,125 854,872 U.S. Treasury Notes......... 8.50% 02/15/00 4,750,000 4,746,562 5,642,858 U.S. Treasury Notes......... 7.50% 11/15/01 150,000 152,320 171,843 U.S. Treasury Notes......... 6.25% 02/15/03 500,000 514,063 529,610 ----------- ----------- Total Government and Governmental Agency Bonds and Notes.......... 10,450,208 12,327,260 ----------- -----------
CASH EQUIVALENTS
UNITS ----------- * Wachovia Bank of North Carolina Short-Term Investment Fund..................................... 254,879 254,879 254,879 ----------- ----------- Total Discretionary Employer Contribution Account... $17,873,597 $25,315,792 ----------- ----------- ----------- -----------
EQUITY ASSETS FUND
COMMON STOCKS SHARES ----------- American International Group Inc ................... 750 $58,218 $73,589 Amoco Corp ......................................... 1,000 55,935 57,750 Baker Hughes Inc ................................... 2,000 46,620 47,000 Block H&R Inc ...................................... 1,000 39,490 38,000
24 SCHEDULE 1 (3 of 5)
(a) (b) (c) (d) (e) - ---- ------------------------------------------------------- -------- ---------- ---------- DESCRIPTION OF INVESTMENT INCLUDING MATURITY DATE, RATE OF INTEREST, COLLATERAL, IDENTITY OF ISSUE, PAR OR BORROWER, LESSOR MATURITY CURRENT OR SIMILAR PARTY VALUE COST VALUE ------------------------------------------------------- -------- ---------- ---------- Century Tel Enterprises Inc ........................... 1,700 50,252 46,964 Circus Circus Enterprises Inc ......................... 1,800 57,051 82,800 Cisco Systems Inc. .................................... 900 41,400 45,000 Coca Cola Co .......................................... 2,200 38,429 92,950 Comcast Corp .......................................... 2,000 50,250 62,250 Crown Cork & Seal Inc ................................. 1,500 59,435 53,625 Dillard Dept Stores Inc................................ 1,800 40,031 64,800 E M C Corp Mass........................................ 1,500 43,775 53,438 Enron Corp............................................. 2,000 58,350 70,000 First Data Corp........................................ 2,000 47,759 78,000 Fisher Scientific Intl Inc ............................ 1,500 46,762 52,500 Forest Labs............................................ 2,000 71,240 75,000 General Electric Co ................................... 600 56,917 57,525 General Re Corp........................................ 400 51,824 49,200 Harley Davidson Inc ................................... 1,500 52,757 70,500 Home Depot Inc ........................................ 2,300 27,182 88,550 Illinois Tool Works Inc................................ 2,000 63,746 77,250 Informix Corp ......................................... 2,000 41,000 47,000 Intel Corp............................................. 1,000 56,845 70,750 International Game Technology ......................... 2,000 34,636 79,750 Interpublic Groups Cos Inc ............................ 2,000 44,580 62,000 Keycorp................................................ 1,400 56,784 53,025 MCI Communications Corp................................ 2,000 56,578 55,250 Microsoft Corp ........................................ 500 33,250 41,250 NationsBank Corp....................................... 1,000 49,060 51,500 Nucor Corp............................................. 2,400 56,742 129,000 Office Depot Inc....................................... 2,250 48,437 75,656 Pitney Bowes Inc....................................... 1,400 56,434 53,550 Raychem Corp .......................................... 1,300 42,561 55,413 Reynolds & Reynolds Co................................. 1,500 56,340 59,063 Schering - Plough Corp. ............................... 900 58,554 59,288 Schlumberger Ltd....................................... 700 36,991 46,638 Service Corp Intl...................................... 1,800 42,858 44,775 Sigma Aldrich Corp .................................... 1,200 32,063 58,200 Telephone & Data Systems Inc .......................... 1,300 52,728 68,575 Teleflex Inc .......................................... 2,000 62,620 65,500 Telefonos De Mexico L ADR ............................. 1,000 45,660 50,625 Time Warner Inc........................................ 1,000 41,183 40,750 United Healthcare Corp. ............................... 600 38,739 41,175 UST Inc................................................ 1,500 25,191 40,313 U.S. Healthcare Inc ................................... 900 45,113 45,675 Varity Corp............................................ 1,500 50,903 53,813 Wheelabrator Technologies Inc ......................... 3,500 70,266 61,688 ---------- ---------- Total Common Stocks ................................... 2,293,539 2,846,913 ---------- ----------
25 SCHEDULE 1 (4 of 5)
(a) (b) (c) (d) (e) - ---- ------------------------------------------------------- -------- ---------- ---------- DESCRIPTION OF INVESTMENT INCLUDING MATURITY DATE, RATE OF INTEREST, COLLATERAL, IDENTITY OF ISSUE, PAR OR BORROWER, LESSOR MATURITY CURRENT OR SIMILAR PARTY VALUE COST VALUE ------------------------------------------------------- -------- ---------- ----------
CASH EQUIVALENTS
UNITS ----------- * Wachovia Bank of North Carolina Short-Term Investment Fund..................................... 71,192 71,192 71,192 ----------- ----------- Total Equity Assets Fund............................ $ 2,364,731 $ 2,918,105 ----------- ----------- ----------- -----------
FIXED INCOME ASSETS FUND GOVERNMENT AND GOVERNMENTAL AGENCY BONDS AND NOTES
DUE PRINCIPAL RATE DATE AMOUNT ----- ------------ ----------- U.S. Treasury Bonds......... 7.875% 11/15/07-02 $ 100,000 $ 99,813 $ 115,828 U.S. Treasury Bonds......... 8.75% 11/15/08-03 200,000 199,563 246,718 U.S. Treasury Bonds......... 7.50% 11/15/16 250,000 252,016 287,070 U.S. Treasury Bonds......... 8.00% 11/15/21 100,000 104,969 122,641 U.S. Treasury Notes......... 8.00% 05/15/01 100,000 98,719 117,531 U.S. Treasury Notes......... 6.375% 06/30/97 100,000 103,578 106,516 U.S. Treasury Notes......... 6.25% 02/15/03 200,000 205,625 211,844 U.S. Treasury Notes......... 8.375% 04/15/95 200,000 199,750 213,718 U.S. Treasury Notes......... 8.50% 02/15/00 500,000 496,520 593,985 U.S. Treasury Notes......... 8.50% 03/31/94 175,000 174,883 179,540 U.S. Treasury Notes......... 7.75% 02/15/01 150,000 151,532 173,484 ----------- ----------- Total Government and Governmental Agency Bonds and Notes................... 2,086,968 2,368,875 ----------- -----------
CASH EQUIVALENTS
UNITS ----------- * Wachovia Bank of North Carolina Short-Term Investment Fund..................................... 244,423 244,423 244,423 ----------- ----------- Total Fixed Income Assets Fund...................... $ 2,331,391 $ 2,613,298 ----------- ----------- ----------- -----------
CASH EQUIVALENTS FUND CASH EQUIVALENTS
UNITS ----------- * Wachovia Bank of North Carolina Short-Term Investment Fund..................................... 1,335,963 $ 1,335,963 $ 1,335,963 ----------- ----------- Total Cash Equivalents Fund......................... $ 1,335,963 $ 1,335,963 ----------- ----------- ----------- -----------
26 SCHEDULE 1 (5 of 5)
(a) (b) (c) (d) (e) - ---- ------------------------------------------------------- -------- ---------- ---------- DESCRIPTION OF INVESTMENT INCLUDING MATURITY DATE, RATE OF INTEREST, COLLATERAL, IDENTITY OF ISSUE, PAR OR BORROWER, LESSOR MATURITY CURRENT OR SIMILAR PARTY VALUE COST VALUE ------------------------------------------------------- -------- ---------- ----------
COMPANY STOCK FUND COMMON STOCKS
SHARES ----------- * Daniel Industries, Inc.............................. 163,110 $ 1,773,168 $ 2,467,039 ----------- ----------- Total Common Stocks................................. 1,773,168 2,467,039 ----------- -----------
CASH EQUIVALENTS
UNITS ----------- * Wachovia Bank of North Carolina Short-Term Investment Fund..................................... 13,352 13,352 13,352 ----------- ----------- Total Company Stock Fund............................ $ 1,786,520 $ 2,480,391 ----------- ----------- ----------- ----------- Total Assets Held for Investment Purposes........... $25,692,202 $34,663,549 ----------- ----------- ----------- -----------
* Represents a party in interest. 27 SCHEDULE 2 DANIEL INDUSTRIES, INC. EMPLOYEES' PROFIT SHARING AND SAVINGS PLAN ITEM 27D-SCHEDULE OF REPORTABLE TRANSACTIONS YEAR ENDED SEPTEMBER 30, 1993
(a) (b) (c) (d) (e) (f) (g) (h) (i) - ------------------ ------------- ---------- ----------- ------- ---------- --------- ----------- --------- DESCRIPTION OF ASSET (INCLUDE INTERST CURRENT RATE AND EXPENSES VALUE OF IDENTITY MATURITY INCURRED ASSET ON OF PARTY IN CASE PURCHASE SELLING LEASE WITH COST TRANSACTION NET GAIN INVOLVED OF A LOAN) PRICE PRICE RENTAL TRANSACTION OF ASSET DATE OR (LOSS) - ------------------- ------------- ----------- ----------- -------- ----------- -------- ----------- --------- Wachovia Bank of Short-Term North Carolina Investment Fund........ $ 8,863,399 $ 8,863,399 Wachovia Bank of Short-Term North Carolina Investment Fund........ $ 8,781,652 $8,781,652 $ 8,781,652
28 CONSENT OF INDEPENDENT ACCOUNTANTS We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 (No. 2-79399), including all Post-Effective Amendments thereto filed prior to the date of this consent, of Daniel Industries, Inc. of our report dated December 20, 1993 appearing on Page 3 of this Annual Report on Form 11-K. PRICE WATERHOUSE Houston, Texas January 13, 1994 -----END PRIVACY-ENHANCED MESSAGE-----