-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, L0ZwYady7worw+kZJ0wgMljsS2i/mgD4EQNGyykkNIyVux14v5K2A5t4zRNt8vVX ydx/JL/bvBnOtf63PhDQIw== 0000033073-98-000006.txt : 19980629 0000033073-98-000006.hdr.sgml : 19980629 ACCESSION NUMBER: 0000033073-98-000006 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980626 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENVIRODYNE INDUSTRIES INC CENTRAL INDEX KEY: 0000033073 STANDARD INDUSTRIAL CLASSIFICATION: PLASTICS PRODUCTS, NEC [3089] IRS NUMBER: 952677354 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 000-05485 FILM NUMBER: 98654766 BUSINESS ADDRESS: STREET 1: 701 HARGER ROAD STE 190 CITY: OAK BROOK STATE: IL ZIP: 60521 BUSINESS PHONE: 7085718800 FORMER COMPANY: FORMER CONFORMED NAME: MGN INC DATE OF NAME CHANGE: 19790425 11-K 1 FORM 11K ENVIRODYNE INDUSTRIES, INC. ENVIRODYNE INDUSTRIES, INC. RETIREMENT SAVINGS PLAN Chicago, Illinois FINANCIAL STATEMENTS December 31, 1997 and 1996 TABLE OF CONTENTS PAGE INDEPENDENT AUDITOR'S REPORT 1 FINANCIAL STATEMENTS Statements of Net Assets Available for Benefits with Fund Information 2 Statements of Changes in Net Assets Available for Benefits with Fund Information 4 Notes to Financial Statements 6 SUPPLEMENTAL INFORMATION 15 Schedule of Assets Held for Investment Purposes - Item 27(a), Form 5500 16 Schedule of Reportable Transactions - Item 27(d), Form 5500 17 NOTE: Supplemental schedules required by the Employee Retirement Income Security Act of 1974 that have not been included herein are not applicable to the Envirodyne Retirement Savings Plan. Plan Administrator Envirodyne Industries, Inc. Retirement Savings Plan Chicago, Illinois Independent Auditor's Report We have audited the accompanying statements of net assets available for benefits with fund information of Envirodyne Industries, Inc. Retirement Savings Plan as of December 31, 1997 and 1996, and the related statements of changes in net assets available for benefits with fund information for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 1997 and 1996, and the changes in net assets available for benefits for the years then ended, in conformity with generally accepted accounting principles. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental Schedule of Assets Held for Investment Purposes - item 27(a), Form 5500 and Schedule of Reportable Transactions - item 27(d), Form 5500 are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The Fund Information in the statements of net assets available for benefits and the statements of changes in net assets available for benefits is presented for purposes of additional analysis rather than to present the net assets available for plan benefits and change in net assets available for plan benefits of each fund. The supplemental schedules and Fund Information have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. CLIFTON GUNDERSON L.L.C. Oak Brook, Illinois June 12, 1998 ENVIRODYNE INDUSTRIES, INC. RETIREMENT SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION - PART 1 December 31, 1997
Fidelity 20th Warburg Warburg Guaranteed Growth Fidelity Century Growth & Inter- Long Term Advisor Puritan Ultra Income national ----------- ----------- ---------- ---------- -------- ---------- $ $ $ $ $ $ ASSETS: Investments, at fair value: Cash transaction account Pooled investment accounts (Cost, $6,150,679) 3,149,066 1,019,375 787,073 465,770 503,028 386,604 Common stock (Cost, $882,749) Participant notes receivable ----------- ----------- ---------- ---------- ---------- --------- Total investments 3,149,066 1,019,375 787,073 465,770 503,028 386,604 ----------- ----------- ---------- ---------- ---------- -------- Receivables: Employer's contribution 40,500 7,593 7,307 4,970 4,721 4,340 Participants' contributions ----------- ----------- ---------- ---------- ---------- -------- Total receivables 40,500 7,593 7,307 4,970 4,721 4,340 ----------- ----------- ---------- ---------- ---------- -------- NET ASSETS AVAILABLE FOR BENEFITS 3,189,566 1,026,968 794,380 470,740 507,749 390,944 =========== =========== ========== ========== ========== ======== These financial statements should be read only in connection with the accompanying notes to financial statements. /TABLE ENVIRODYNE INDUSTRIES, INC. RETIREMENT SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION - PART 2 December 31, 1997
Envirodyne Lifetime Lifetime Lifetime Lifetime Stock Loan 20 30 40 50 Fund Fund Other Total ---------- -------- ----------- -------- --------- -------- -------- ---------- $ $ $ $ $ $ $ $ ASSETS: Investments, at fair value: Cash transaction account Pooled investment accounts (Cost, $6,150,679) 95,893 173,370 122,223 187,941 6,890,343 Common stock (Cost, $882,749) 954,312 954,312 Participant notes receivable 324,253 324,253 ---------- --------- ---------- --------- -------- -------- ------ ---------- Total investments 95,893 173,370 122,223 187,941 954,312 324,253 8,168,908 ---------- --------- ---------- --------- -------- -------- ------ ---------- Receivables: Employer's contribution 1,551 2,873 1,852 1,837 8,957 86,501 Participants' contributions ---------- -------- ---------- --------- -------- -------- ------ ---------- Total receivables 1,551 2,873 1,852 1,837 8,957 86,501 ---------- -------- ---------- --------- -------- -------- ------ ---------- NET ASSETS AVAILABLE FOR BENEFITS 97,444 176,243 124,075 189,778 963,269 324,253 8,255,409 ========== ======== ========== ========= ======== ======== ====== ========== These financial statements should be read only in connection with the accompanying notes to financial statements.
ENVIRODYNE INDUSTRIES, INC. RETIREMENT SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION - PART 1 December 31, 1996
Fidelity 20th Warburg Warburg Guaranteed Growth Fidelity Century Growth & Inter- Long Term Advisor Puritan Ultra Income national ----------- ----------- ---------- ---------- -------- ---------- $ $ $ $ $ $ ASSETS: Investments, at fair value: Cash transaction account Pooled investment accounts (Cost, $5,097,388) 2,708,060 693,912 519,431 355,598 369,875 382,156 Common stock (Cost, $346,000) Participant notes receivable ----------- ----------- ---------- ---------- ---------- --------- Total investments 2,708,060 693,912 519,431 355,598 369,875 382,156 ----------- ----------- ---------- ---------- ---------- -------- Receivables: Employer's contribution 59,692 10,726 11,186 6,678 7,739 6,556 Participants' contributions 30,602 6,805 6,097 4,177 4,654 3,968 ----------- ----------- ---------- ---------- ---------- -------- Total receivables 90,294 17,531 17,283 10,855 12,393 10,524 ----------- ----------- ---------- ---------- ---------- -------- NET ASSETS AVAILABLE FOR BENEFITS 2,798,354 711,443 536,714 366,453 382,268 392,680 =========== =========== ========== ========== ========== ======== These financial statements should be read only in connection with the accompanying notes to financial statements. /TABLE ENVIRODYNE INDUSTRIES, INC. RETIREMENT SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION - PART 2 December 31, 1996
Envirodyne Lifetime Lifetime Lifetime Lifetime Stock Loan 20 30 40 50 Fund Fund Other Total ---------- -------- ----------- -------- --------- -------- -------- ---------- $ $ $ $ $ $ $ $ ASSETS: Investments, at fair value: Cash transaction account 1,847 1,847 Pooled investment accounts (Cost, $5,097,388) 94,125 144,466 87,980 155,851 5,511,454 Common stock (Cost, $346,000) 375,197 375,197 Participant notes receivable 241,907 241,907 ---------- --------- ---------- --------- -------- -------- ------ ---------- Total investments 94,125 144,466 87,980 155,851 375,197 241,907 1,847 6,130,405 ---------- --------- ---------- --------- -------- -------- ------ ---------- Receivables: Employer's contribution 2,566 4,761 2,513 2,765 3,983 119,165 Participants' contributions 1,382 2,829 1,304 1,384 2,371 65,573 ---------- -------- ----------- --------- -------- -------- ------ ---------- Total receivables 3,948 7,590 3,817 4,149 6,354 184,738 ---------- -------- ----------- --------- -------- -------- ------ ---------- NET ASSETS AVAILABLE FOR BENEFITS 98,073 152,056 91,797 160,000 381,551 241,907 1,847 6,315,143 ========== ======== =========== ========= ======== ======== ====== ========== These financial statements should be read only in connection with the accompanying notes to financial statements. /TABLE ENVIRODYNE INDUSTRIES INC. RETIREMENT SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION - PART 1 For the Year Ended December 31, 1997
Fidelity 20th Warburg Warburg Guaranteed Growth Fidelity Century Growth & Inter- Long Term Advisor Puritan Ultra Income national ----------- ----------- ---------- ---------- -------- ---------- $ $ $ $ $ $ ADDITIONS TO NET ASSETS ATTRIBUTED TO: Investment income: Net unrealized appreciation (depreciation) in fair value of investments 172,870 80,044 97,092 41,126 94,552 (36,286) Net realized gain from sale of investments 133,744 28,512 35,037 12,468 11,803 Interest income ---------- ----------- ---------- ---------- ---------- --------- Total investment income (loss) 172,870 213,788 125,604 76,163 107,020 (24,483) ---------- ----------- ---------- ---------- ---------- --------- Contributions: Employer 209,457 47,217 44,076 34,070 29,761 28,004 Participants 405,788 94,903 87,243 79,345 60,084 55,213 ---------- ----------- ---------- ---------- ---------- --------- Total contributions 615,245 142,120 131,319 113,415 89,845 83,217 ---------- ----------- ---------- ---------- ---------- --------- Interfund transfers (202,940) 27,738 33,055 (44,688) (63,392) (20,194) Participant loan payments received 79,418 11,687 17,180 3,869 7,353 6,227 ---------- ----------- ---------- ---------- ---------- --------- (123,522) 39,425 50,235 (40,819) (56,039) (13,967) ---------- ----------- ---------- ---------- ---------- --------- TOTAL ADDITIONS 664,593 395,333 307,158 148,759 140,826 44,767 ---------- ----------- ---------- ---------- ---------- --------- DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO: Benefits paid to participants 149,300 66,686 25,024 26,851 5,456 39,049 Administrative fees 3,512 280 873 287 388 344 Loans to participants 120,569 12,842 23,595 17,334 9,501 7,110 ---------- ----------- ---------- ---------- ---------- --------- TOTAL DEDUCTIONS 273,381 79,808 49,492 44,472 15,345 46,503 ---------- ----------- ---------- ---------- ---------- --------- NET INCREASE (DECREASE) IN NET ASSETS AVAILABLE FOR BENEFITS 391,212 315,525 257,666 104,287 125,481 (1,736) NET ASSETS AVAILABLE FOR BENEFITS, BEGINNING OF YEAR 2,798,354 711,443 536,714 366,453 382,268 392,680 ---------- ----------- ---------- ---------- ---------- --------- NET ASSETS AVAILABLE FOR BENEFITS, END OF YEAR 3,189,566 1,026,968 794,380 470,740 507,749 390,944 ========== =========== ========== ========== ========== ========= These financial statements should be read only in connection with the notes to accompanying financial statements.
ENVIRODYNE INDUSTRIES INC. RETIREMENT SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION - PART 2 For the Year Ended December 31, 1997
Envirodyne Lifetime Lifetime Lifetime Lifetime Stock Loan 20 30 40 50 Fund Fund Other Total ---------- -------- ----------- -------- --------- -------- -------- ---------- $ $ $ $ $ $ $ $ ADDITIONS TO NET ASSETS ATTRIBUTED TO: Investment income: Net unrealized appreciation (depreciation) in fair value of investments 3,412 12,320 12,332 20,739 36,896 535,097 Net realized gain from sale of investments 14,793 9,235 2,238 2,922 23,768 274,520 Interest income 25,814 25,814 ---------- --------- ---------- --------- -------- -------- ------ ---------- Total investment income (loss) 18,205 21,555 14,570 23,661 60,664 25,814 835,431 ---------- --------- ---------- --------- -------- -------- ------ ---------- Contributions: Employer 9,529 14,305 11,089 9,855 48,272 485,635 Participants 25,382 26,327 19,703 15,139 107,809 976,936 ---------- --------- ---------- --------- -------- -------- ------ ---------- Total contributions 34,911 40,632 30,792 24,994 156,081 1,462,571 ---------- --------- ---------- --------- -------- -------- ------ ---------- Interfund transfers (37,001) (22,285) (2,614) (12,899) 371,034 (25,814) Participant loan payments received 2,608 4,085 3,316 895 7,289 (143,927) ---------- --------- ---------- --------- -------- -------- ------ ---------- (34,393) (18,200) 702 (12,004) 378,323 (169,741) ---------- --------- ---------- --------- -------- -------- ------ ---------- TOTAL ADDITIONS 18,723 43,987 46,064 36,651 595,068 (143,927) 2,298,002 ---------- --------- ---------- --------- -------- -------- ------ ---------- DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO: Benefits paid to participants 15,677 6,624 6,343 1,953 280 6,172 1,847 351,262 Administrative fees 127 199 147 80 237 6,474 Loans to participants 3,548 12,977 7,296 4,480 12,833 (232,445) ---------- --------- ---------- --------- -------- -------- ------ ---------- TOTAL DEDUCTIONS 19,352 19,800 13,786 6,873 13,350 (226,273) 1,847 357,736 ---------- --------- ---------- --------- -------- -------- ------ ---------- NET INCREASE (DECREASE) IN NET ASSETS AVAILABLE FOR BENEFITS (629) 24,187 32,278 29,778 581,718 82,346 (1,847) 1,940,266 NET ASSETS AVAILABLE FOR BENEFITS, BEGINNING OF YEAR 98,073 152,056 91,797 160,000 381 551 241,907 1,847 6,315,143 ---------- --------- ---------- --------- -------- -------- ------ ---------- NET ASSETS AVAILABLE FOR BENEFITS, END OF YEAR 97,444 176,243 124,075 189,778 963,269 324,253 8,255,409 ========== ========= ========== ========= ======== ======== ====== ========== These financial statements should be read only in connection with the notes to accompanying financial statements. /TABLE ENVIRODYNE INDUSTRIES INC. RETIREMENT SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION - PART 1 For the Year Ended December 31, 1996
Fidelity 20th Warburg Warburg Guaranteed Growth Fidelity Century Growth & Inter- Long Term Advisor Puritan Ultra Income national ----------- ----------- ---------- ---------- -------- ---------- $ $ $ $ $ $ ADDITIONS TO NET ASSETS ATTRIBUTED TO: Investment income: Net unrealized appreciation (depreciation) in fair value of investments 153,700 37,591 39,933 12,111 (32,460) 9,628 Net realized gain (loss) from sale of investments 74,957 22,693 23,222 20,704 25,541 Interest income ----------- ----------- ---------- ---------- ---------- --------- Total investment income (loss) 153,700 112,548 62,626 35,333 (11,756) 35,169 ----------- ----------- ---------- ---------- ---------- --------- Contributions: Employer 214,405 48,824 44,666 26,048 36,688 35,088 Participants 392,611 100,072 83,895 58,490 78,040 78,251 ----------- ----------- ---------- ---------- ---------- --------- Total contributions 607,016 148,896 128,561 84,538 114,728 113,339 ----------- ----------- ---------- ---------- ---------- --------- Interfund transfers (260,188) (17,984) (16,770) 79,272 (50,303) (35,131) Participant loan payments received 29,280 4,949 5,367 2,428 3,584 3,164 ----------- ----------- ---------- ---------- ---------- --------- (230,908) (13,035) (11,403) 81,700 (46,719) (31,967) ----------- ----------- ---------- ---------- ---------- --------- TOTAL ADDITIONS 529,808 248,409 179,784 201,571 56,253 116,541 ----------- ----------- ---------- ---------- ---------- --------- DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO: Benefits paid to participants 123,116 35,310 29,988 27,118 70,707 61,820 Administrative fees 3,932 473 740 219 247 381 Loans to participants 130,048 24,942 32,989 5,060 15,908 17,035 ----------- ----------- ---------- ---------- ---------- --------- TOTAL DEDUCTIONS 257,096 60,725 63,717 32,397 86,862 79,236 ----------- ----------- ---------- ---------- ---------- --------- NET INCREASE (DECREASE) IN NET ASSETS AVAILABLE FOR BENEFITS 272,712 187,684 116,067 169,174 (30,609) 37,305 NET ASSETS AVAILABLE FOR BENEFITS, BEGINNING OF YEAR 2,525,642 523,759 420,647 197,279 412,877 355,375 ----------- ----------- ---------- ---------- ---------- --------- NET ASSETS AVAILABLE FOR BENEFITS, END OF YEAR 2,798,354 711,443 536,714 366,453 382,268 392,680 =========== =========== ========== ========== ========== ========= These financial statements should be read only in connection with the notes to accompanying financial statements.
ENVIRODYNE INDUSTRIES INC. RETIREMENT SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION - PART 2 For the Year Ended December 31, 1996
Envirodyne Lifetime Lifetime Lifetime Lifetime Stock Loan 20 30 40 50 Fund Fund Other Total ---------- -------- ----------- -------- --------- -------- -------- ---------- $ $ $ $ $ $ $ $ ADDITIONS TO NET ASSETS ATTRIBUTED TO: Investment income: Net unrealized appreciation (depreciation) in fair value of investments 5,122 8,603 (3,091) (5,376) 29,195 254,956 Net realized gain (loss) from sale of investments 3,931 4,041 12,741 26,071 1 213,902 Interest income 10,455 10,455 ---------- --------- ---------- --------- -------- -------- ------ ---------- Total investment income (loss) 9,053 12,644 9,650 20,695 29,196 10,455 479,313 ---------- --------- ---------- --------- -------- -------- ------ ---------- Contributions: Employer 9,994 16,205 9,234 11,384 5,216 457,752 Participants 19,392 30,180 14,695 18,735 5,076 1,847 881,284 ---------- --------- ---------- --------- -------- -------- ------ ---------- Total contributions 29,386 46,385 23,929 30,119 10,292 1,847 1,339,036 ---------- --------- ---------- --------- -------- -------- ------ ---------- Interfund transfers (5,650) 4,427 (1,969) (27,122) 341,873 (10,455) Participant loan payments received 1,814 2,677 938 67 190 (54,458) ---------- --------- ---------- --------- -------- -------- ------ ---------- (3,836) 7,104 (1,031) (27,055) 342,063 (64,913) ---------- --------- ---------- --------- -------- -------- ------ ---------- TOTAL ADDITIONS 34,603 66,133 32,548 23,759 381,551 (54,458) 1,847 1,818,349 ---------- --------- ---------- --------- -------- -------- ------ ---------- DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO: Benefits paid to participants 248 12,753 3,878 41,611 4,959 411,508 Administrative fees 139 227 82 140 6,580 Loans to participants 3,922 8,554 7,781 1,137 (247,376) ---------- --------- ---------- --------- -------- -------- ------ ---------- TOTAL DEDUCTIONS 4,309 21,534 11,741 42,888 (242,417) 418,088 ---------- --------- ---------- --------- -------- -------- ------ ---------- NET INCREASE (DECREASE) IN NET ASSETS AVAILABLE FOR BENEFITS 30,294 44,599 20,807 (19,129) 381,551 187,959 1,847 1,400,261 NET ASSETS AVAILABLE FOR BENEFITS, BEGINNING OF YEAR 67,779 107,457 70,990 179,129 53,948 4,914,882 ---------- --------- ---------- --------- -------- -------- ------ ---------- NET ASSETS AVAILABLE FOR BENEFITS, END OF YEAR 98,073 152,056 91,797 160,000 381,551 241,907 1,847 6,315,143 ========== ========= ========== ========= ======== ======== ====== ========== These financial statements should be read only in connection with the notes to accompanying financial statements.
ENVIRODYNE INDUSTRIES, INC. RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS December 31, 1997 and 1996 NOTE 1 - DESCRIPTION OF THE PLAN - -------------------------------- The following description of the Envirodyne Industries, Inc. Retirement Savings Plan ("the Plan") provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan's provisions. General The Plan is a defined contribution plan established to provide deferred compensation benefits to eligible employees. Under the Plan, all of the employees of Envirodyne Industries, Inc. ("Employer") and its participating subsidiaries who have met eligibility requirements may elect to participate in the Plan. Employees who are covered by a collective bargaining agreement will be eligible only if their participation is provided for in the agreement. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). Participation Eligible employees may become Plan members on the first day of January, April, July or October following six months from their date of hire. Contributions Participating employees, by means of authorized payroll deductions, make contributions to the Plan in amounts based upon a percentage of their compensation. These contributions cannot be less than two percent (2%) nor greater than fifteen percent (15%) of the participant's compensation. Employer contributions to the Plan are made in varying proportions and are based upon the percent of the participant's contributions and the participant's years of credited service. At the discretion of the Employer, there also may be an employer profit sharing contribution for active participants at the end of the plan year. Vesting Participant contributions plus the earnings thereon are fully vested. Vesting in the Employer contributions and the earnings thereon is based on years of credited service. A participant is 100% vested after five years of credited service. If a participant attains age 65, or becomes permanently and totally disabled, or dies, the full value of the Employer contribution account becomes immediately vested and is nonforfeitable. Allocations Investment income is allocated based on account balances as defined by the Plan. The Employer profit sharing contribution is allocated to participants based upon their annual compensation as a percentage of the total annual compensation for all participants. Amounts allocated to accounts of persons who have elected to withdraw from the Plan but have not been paid as of December 31, 1997 and 1996 are $3,732 and $33,932, respectively. Participant Notes Receivable Participants may borrow from their fund accounts a maximum equal to the lesser of $50,000 or 50% of their vested account balance. All loans must be repaid within five years. The loans are secured by the balance in the participant's account and bear interest at a rate determined by the plan administrator equal to 1% over the prime interest rate. Principal and interest is paid ratably through payroll deductions. Payment of Benefits Distribution of account balance is made in a single sum payment. Rollover Contributions The rollover contributions represent lump sum benefits received by certain employees from another organization's pension or profit sharing plan, or from the Envirodyne Employee Thrift Plan. The Plan allows a participant to contribute these benefits in 10% increments to the plan funds. Rollover contributions are included in employee contributions in the statement of changes in net assets available for benefits with fund information. A rollover contribution is payable upon retirement, termination of employment, death or disability. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - --------------------------------------------------- Use of Estimates in Preparing Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of additions and deductions during the reporting period. Actual results could differ from those estimates. Investments Quoted market prices are used to value investments. Investments are stated at fair value. Participant notes receivable are valued at cost which approximates market value. Investment transactions are reflected on a trade-date basis. Realized gains or losses on sales of securities are based on revalued cost. Income from investments is recorded as earned on an accrual basis. Cost is determined on an average-cost basis. Risks and Uncertainties The Plan provides for various investment options in any combination of Envirodyne Industries, Inc. common stock and numerous pooled investment accounts. Investment securities are exposed to various risks, such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants' account balances and the amounts reported in the statement of net assets available for benefits with fund information. Administrative Expenses Expenses of the Plan other than brokerage commissions, which are included in the cost of the investments and loan fees, which are paid directly by the Plan, are paid by the Employer. Although the Employer has elected to pay these expenses, it is not obligated to do so. If the Employer ceases to pay all or part of these expenses in the future, they will be paid by the Plan's trustee out of the assets of the Plan. Forfeitures Forfeitures are recorded as a reduction to the aggregate Employer contributions in the year they occur. For the years ended December 31, 1997 and 1996, forfeitures amounted to $13,961 and $2,567, respectively. Payment of Benefits Benefits are recorded when paid. NOTE 3 - INVESTMENT PROGRAM - --------------------------- The Plan provides for investment election alternatives allowing participant contributions to be invested in certain individual programs as directed by each participant in 10% increments. Participants may change their investment elections up to four times a year as provided in the Plan. Employer contributions are invested in the same proportion as the participants' contributions. The investment options are as follows: GUARANTEED LONG TERM FUND - The assets of this account are invested in a diversified portfolio of high quality, fixed income instruments (primarily intermediate bonds and commercial mortgages within Connecticut General's General Account). Principal and interest are fully guaranteed by the Connecticut General Life Insurance Company. The objective of this account is to provide stable returns and to preserve the principal investment. FIDELITY GROWTH ADVISOR - The assets of this account are exclusively invested in the Fidelity Advisory Growth Opportunities Fund which invests mostly in common stocks and also in preferred stocks and bonds. This account seeks to provide long-term capital appreciation. FIDELITY PURITAN FUND - The assets of this account are exclusively invested in the Fidelity Puritan Fund which invests in a diversified portfolio of securities including stocks, bonds and short-term investments. The objective of this account is to preserve capital and provide current income while seeking long-term growth of capital and income. TWENTIETH CENTURY ULTRA - The assets of this account are exclusively invested in the American Century-Twentieth Century Ultra Fund which invests primarily in common stocks of companies with accelerating earnings and revenues. This account seeks to provide capital growth over time. WARBURG GROWTH AND INCOME - The assets of this account are exclusively invested in the Warburg Pincus Advisor Growth & Income Fund which invests in dividend-paying equity securities, including common stocks and other marketable securities as well as fixed income securities. This account seeks to provide long-term capital appreciation. WARBURG INTERNATIONAL - The assets of this account are exclusively invested in the Warburg Pincus Advisor International Equity Account which invests primarily in common stocks, debt securities and preferred stocks of companies based outside the United States. The objective of the account is to achieve long-term capital appreciation through international diversification. LIFETIME 20 - The assets of this account are invested 80% in stocks and 20% in bonds. The stock accounts are CIGNA separate accounts which invest in Fidelity Advisor Growth Opportunities, Warburg Pincus Advisor Emerging Growth and Warburg Pincus Advisor International Equity. The bond separate accounts are CIGNA Actively Managed (Core) Fixed Income and CIGNA High Yield Bond Fund. This account seeks to provide long-term capital appreciation. LIFETIME 30 - The assets of this account are invested 70% in stocks and 30% in bonds. The stock accounts are CIGNA separate accounts which invest in Fidelity Advisor Growth Opportunities, CIGNA Growth & Income, Warburg Pincus Advisor Emerging Growth and Warburg Pincus Advisor International Equity. The bond separate accounts are CIGNA Actively Managed (Core) Fixed Income and CIGNA High Yield Bond Fund. This account seeks to provide long-term capital appreciation. LIFETIME 40 - The assets of this account are invested 65% in stocks and 35% in bonds. The stock accounts are CIGNA separate accounts which invest in Fidelity Advisor Growth Opportunities, CIGNA Growth & Income, Vanguard Quantitative Portfolios, Warburg Pincus Advisor Emerging Growth and Warburg Pincus Advisor International Equity. The bond separate accounts are CIGNA Actively Managed (Core) Fixed Income and CIGNA High Yield Bond Fund. This account seeks to provide long-term capital appreciation with a secondary emphasis on income and capital stability. LIFETIME 50 - The assets of this account are invested 55% in stocks and 45% in bonds. The stock accounts are CIGNA separate accounts which invest in Fidelity Advisor Growth Opportunities, CIGNA Growth & Income, Vanguard Quantitative Portfolios, Warburg Pincus Advisor Emerging Growth and Warburg Pincus Advisor International Equity. The bond separate accounts are CIGNA Actively Managed (Core) Fixed Income and CIGNA High Yield Bond Fund. ENVIRODYNE STOCK FUND - The assets of the Envirodyne Stock Fund are exclusively invested in Envirodyne Industries, Inc. Common Stock. At December 31, 1997 and 1996, there were 470 and 455 participants, respectively, invested in one or more of the Plan's investment accounts. Following is the number of participants investing in each account: 1997 1996 -------- -------- Guaranteed Long-Term Fund 415 389 Fidelity Growth Advisor 137 118 Fidelity Puritan Fund 153 134 20th Century Ultra Fund 101 76 Warburg Growth & Income 85 80 Warburg International 95 94 Lifetime 20 36 28 Lifetime 30 57 47 Lifetime 40 32 29 Lifetime 50 24 19 Envirodyne Stock Fund 106 25 The number of units and the net asset value per unit for each account are as follows: 1997 1996 ------------------ ------------------ Net Asset Net Asset Number Value Number Value of Units Per Unit of Units Per Unit -------- -------- -------- -------- Guaranteed Long-Term Fund 103,577 $ 30 94,527 $ 29 Fidelity Growth Advisor 16,682 61 14,519 48 Fidelity Puritan Fund 30,289 26 24,202 21 20th Century Ultra Fund 12,102 38 11,263 32 Warburg Growth & Income 24,038 21 22,821 16 Warburg International 17,556 22 16,422 23 Lifetime 20 5,825 16 6,602 14 Lifetime 30 10,593 16 10,252 14 Lifetime 40 7,703 16 6,416 14 Lifetime 50 12,070 16 11,519 14 Envirodyne Stock Fund 135,332 7 66,702 6 Participants may direct contributions to the Envirodyne Stock Fund which invests in Envirodyne Industries, Inc. common stock, a security of a participating employer. Investments in Envirodyne Industries, Inc. common stock as of December 31, 1997 and 1996 were $954,312 and $375,197, respectively. For the years ended December 31, 1997 and 1996, income from Envirodyne Industries, Inc. common stock was $0; net unrealized appreciation in fair value of Envirodyne Industries, Inc. common stock was $36,896 and $29,195, respectively; and net realized gain from sale of Envirodyne Industries, Inc. common stock was $23,768 and $1, respectively. The following table presents the fair market value and book value of the investments: 1997 1996 ---------- ---------- Market Value $7,844,655 $5,886,651 Cost, net of previously recognized appreciation and depreciation 7,309,558 5,631,695 ---------- ---------- Net unrealized appreciation in fair value of investments $ 535,097 $ 254,956 ========== ========== NOTE 4 - CONTRIBUTIONS - ---------------------- Contributions to the Plan by Clear Shield National, Inc. and Envirodyne Industries, Inc. are as follows: 1997 ---------------------------------------------- Clear Shield Envirodyne National, Inc. Industries, Inc. Total ------------- --------------- ---------- Employer $ 446,988 $ 38,647 $ 485,635 Participant 868,421 108,515 976,936 ---------- -------- ---------- $1,315,409 $147,162 $1,462,571 ========== ======== ========== 1996 ---------------------------------------------- Clear Shield Envirodyne National, Inc. Industries, Inc. Total ------------- --------------- ---------- Employer $ 419,511 $ 38,241 $ 457,752 Participant 767,570 113,714 881,284 ---------- -------- ---------- $1,187,081 $151,955 $1,339,036 ========== ======== ========== NOTE 5 - FEDERAL INCOME TAXES - ----------------------------- The Internal Revenue Service has determined and informed the Employer by a letter dated July 9, 1997, that the Plan is qualified and the trust established under the Plan is tax-exempt, under the appropriate sections of the Code. The following rules, among others, apply to distributions from the Plan to participants under income tax laws in effect at December 31, 1997: (i) A participant will not be subject to federal income tax on Employer contributions or on the income or gains realized on investments credited to his account until such time as a distribution from the Plan is paid or made available to him. (ii) Upon the distribution to a participant of his entire interest in the Plan within a single calendar year, the total amount distributed, after excluding the amount of the participant's contributions, will be subject to federal income tax as ordinary income in the year of distribution. (iii) An additional tax equal to 10% of the taxable amount will be imposed in most instances where the distribution is payable to a recipient below the age of 59-1/2 for reasons other than death, disability, or to pay deductible medical expenses. NOTE 6 - NET REALIZED GAIN FROM SALE OF INVESTMENTS - --------------------------------------------------- The net realized gain from sale of investments was computed as follows: 1997 1996 ----------- ----------- Proceeds from sale $ 1,592,360 $ 1,894,846 Cost 1,317,840 1,680,944 ----------- ----------- Net realized gain $ 274,520 $ 213,902 =========== =========== NOTE 7 - INVESTMENTS REPRESENTING FIVE PERCENT OR MORE OF NET ASSETS AVAILABLE FOR BENEFITS - --------------------------------------------------------------- Investments representing five percent or more of net assets available for plan benefits were as follows:
December 31, 1997 ----------------- Identity of Issue Description Value - ---------------------------- --------------------------------- ------------- Connecticut General Life Ins. Guaranteed Long Term Fund $3,149,066 Connecticut General Life Ins. Fidelity Growth Advisor 1,019,375 Connecticut General Life Ins. Fidelity Puritan Fund 787,073 Connecticut General Life Ins. Twentieth Century Ultra Fund 465,770 Connecticut General Life Ins. Warburg Growth & Income 503,028 Envirodyne Industries, Inc. Envirodyne Stock Fund 954,312
December 31, 1996 ----------------- Identity of Issue Description Value - ---------------------------- --------------------------------- ------------- Connecticut General Life Ins. Guaranteed Long Term Fund $2,708,060 Connecticut General Life Ins. Fidelity Growth Advisor 693,912 Connecticut General Life Ins. Fidelity Puritan Fund 519,431 Connecticut General Life Ins. Twentieth Century Ultra Fund 355,598 Connecticut General Life Ins. Warburg Growth & Income 369,875 Connecticut General Life Ins. Warburg International 382,156 Envirodyne Industries, Inc. Envirodyne Stock Fund 375,197 /TABLE NOTE 8 - PLAN TERMINATION - ------------------------- The Employer reserves the right to alter, amend, or terminate the Plan. In the event of Plan termination, participants will become 100% vested in their accounts. Presently, there is no intention on the part of the Employer to terminate the Plan. NOTE 9 - SUBSEQUENT EVENT - ------------------------- Subsequent to December 31, 1997, the Employer entered into an agreement with an unrelated party which is intended to result in the ultimate sale of one of the sponsoring employers to the unrelated party. This information is an integral part of the accompanying financial statements.
SUPPLEMENTAL INFORMATION ------------------------ ENVIRODYNE INDUSTRIES, INC. RETIREMENT SAVINGS PLAN SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES - ITEM 27(a) FORM 5500 December 31, 1997 Plan Name: Envirodyne Retirement Savings Plan EIN: 95-2677354 Plan Number: 002 (a) Asterisk if party-in (b) Identity of issue, borrower, (e) Fair Interest lessor or similar party (c) Description (d) Cost Value - ---------- ---------------------------------- ----------------------------------------- ----------- ------------- * Connecticut General Life Ins. Guaranteed Long Term Fund $3,149,066 $3,149,066 * Connecticut General Life Ins. Fidelity Growth Advisor 803,786 1,019,375 * Connecticut General Life Ins. Fidelity Puritan Fund 591,293 787,073 * Connecticut General Life Ins. Twentieth Century Ultra Fund 375,372 465,770 * Connecticut General Life Ins. Warburg Growth & Income 395,469 503,028 * Connecticut General Life Ins. Warburg International 368,387 386,604 * Connecticut General Life Ins. Lifetime 20 75,572 95,893 * Connecticut General Life Ins. Lifetime 30 135,712 173,370 * Connecticut General Life Ins. Lifetime 40 104,267 122,223 * Connecticut General Life Ins. Lifetime 50 151,755 187,941 * Envirodyne Industries, Inc. Envirodyne Industries, Inc. Stock Fund 882,749 954,312 Outstanding Participant Loan - 324,253 ---------- ---------- $7,033,428 $8,168,908 ========== ========== /TABLE ENVIRODYNE INDUSTRIES, INC. RETIREMENT SAVINGS PLAN SCHEDULE OF REPORTABLE TRANSACTIONS - ITEM 27(d), FORM 5500 December 31, 1997 Plan Name: Envirodyne Retirement Savings Plan EIN: 95-2677354 Plan Number: 002
(b) Current value of (a) Identity assets on of party (b) Description (c) Purchase (d) Selling (g) Cost of transaction (i) Net gain Involved of Asset Price Price Asset date or (loss) - ------------ --------------------------------- --------------- --------------- ----------- ----------- ------------- CGLIC Guaranteed Long Term Fund $1,409,974 Not Applicable $1,409,974 $1,409,974 $0 CGLIC Guaranteed Long Term Fund Not Applicable $1,141,837 $1,141,837 $1,141,837 $0 CGLIC Fidelity Growth Advisor $907,046 Not Applicable $907,046 $907,046 $0 CGLIC Fidelity Growth Advisor Not Applicable $796,484 $662,739 $796,484 $133,745 CGLIC Fidelity Puritan Fund $261,696 Not Applicable $261,696 $261,696 $0 CGLIC Fidelity Puritan Fund Not Applicable $119,509 $90,997 $119,509 $28,512 CGLIC Twentieth Century Ultra Fund $232,950 Not Applicable $232,950 $232,950 $0 CGLIC Twentieth Century Ultra Fund Not Applicable $198,595 $163,559 $198,595 $35,036 Envirodyne Industries, Inc. $658,641 Not Applicable $658,641 $658,641 $0 Envirodyne Industries, Inc. Not Applicable $145,661 $121,894 $145,661 $23,767
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