-----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, Pqys8OF1X7YZS67uDoOCqgte0ypf1nheZpm95hq+zZbgaMRELCUVui3eqjp9bC++ I1jlW+Vl0OlWOe48L56jzQ== 0000950131-98-005058.txt : 19980902 0000950131-98-005058.hdr.sgml : 19980902 ACCESSION NUMBER: 0000950131-98-005058 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980901 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: FMC CORP CENTRAL INDEX KEY: 0000037785 STANDARD INDUSTRIAL CLASSIFICATION: CHEMICALS & ALLIED PRODUCTS [2800] IRS NUMBER: 940479804 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 001-02376 FILM NUMBER: 98702409 BUSINESS ADDRESS: STREET 1: 200 E RANDOLPH DR CITY: CHICAGO STATE: IL ZIP: 60601 BUSINESS PHONE: 3128616000 FORMER COMPANY: FORMER CONFORMED NAME: BEAN SPRAY PUMP CO DATE OF NAME CHANGE: 19670706 FORMER COMPANY: FORMER CONFORMED NAME: FOOD MACHINERY & CHEMICAL CORP DATE OF NAME CHANGE: 19670706 11-K 1 FORM 11-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 11-K [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED) For the fiscal year ended. . . . . . . . . .December 31, 1997 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 ____________________________________________ A. FMC CORPORATION 401 (k) PLAN FOR EMPLOYEES' COVERED BY A COLLECTIVE BARGAINING AGREEMENT (Full title of the Plan) B. FMC CORPORATION 200 East Randolph Drive, Chicago, Illinois 60601 (Name and Address of Issuer) SIGNATURES ---------- The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, FMC Corporation, as Plan Administrator, has duly caused this annual report to be signed on its behalf by the undersigned duly authorized. FMC CORPORATION 401 (k) PLAN FOR EMPLOYEES COVERED BY A COLLECTIVE BARGAINING AGREEMENT By /s/ Steven H. Shapiro ------------------------- Associate General Counsel and Assistant Secretary Dated: September 1, 1998 FMC CORPORATION 401(k) PLAN FOR EMPLOYEES COVERED BY A COLLECTIVE BARGAINING AGREEMENT
TABLE OF CONTENTS =================================================================================== Page(s) ------- Independent Auditors' Report.................................... 1 Statement of Net Assets Available for Plan Benefits with Fund Information--December 31, 1997...................... 2 Statement of Net Assets Available for Plan Benefits with Fund Information--December 31, 1996...................... 3 Statement of Changes in Net Assets Available for Plan Benefits with Fund Information--year ended December 31, 1997........... 4-5 Statement of Changes in Net Assets Available for Plan Benefits with Fund Information--year ended December 31, 1996........... 6 Notes to Financial Statements................................... 7-12 Schedule -------- Item 27a--Schedule of Assets Held for Investment Purposes....... 1 13 Item 27d--Schedule of 5% Reportable Transactions................ 2 14
Independent Auditors' Report ---------------------------- The Employee Welfare Benefits Plan Committee of FMC Corporation: We have audited the accompanying statements of net assets available for plan benefits of FMC Corporation 401(k) Plan for Employees Covered by a Collective Bargaining Agreement (the Plan) as of December 31, 1997 and 1996, and the related statements of changes in net assets available for plan benefits 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 plan benefits of the Plan as of December 31, 1997 and 1996, and the changes in net assets available for plan 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 schedules of assets held for investment purposes and reportable 5% transactions 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 plan benefits and the statements of changes in net assets available for plan benefits is presented for purposes of additional analysis rather than to present the net assets available for plan benefits and the changes 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. The schedule of assets held for investment purposes that accompanies the Plan's financial statements does not disclose the historical cost of certain plan assets held by the Plan trustee. Disclosure of this information is required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. /s/ KPMG Peat Marwick LLP Chicago, Illinois June 26, 1998 FMC CORPORATION 401(k) PLAN FOR EMPLOYEES COVERED BY A COLLECTIVE BARGAINING AGREEMENT Statement of Net Assets Available for Plan Benefits with Fund Information December 31, 1997
- --------------------------------------------------------------------------------------------------------------------------------- FMC Stable Mutual Fidelity Fidelity Low-Priced Stock Value Clipper Qualified(Z) Sequoia Puritan Blue Chip Stock Fund Fund Fund Fund Fund Fund Growth Fund Fund - --------------------------------------------------------------------------------------------------------------------------------- Investments at fair value $2,099,645 7,467,394 237,109 63,515 417,409 498,189 6,741,818 576,756 Participants' loans receivable - - - - - - - - - --------------------------------------------------------------------------------------------------------------------------------- Net assets available for benefits $2,099,645 7,467,394 237,109 63,515 417,409 498,189 6,741,818 576,756 ================================================================================================================================= - ------------------------------------------------------------------------------------------------------ Retirement Diversified Government U. S. International Money Market Equity Loan Fund Fund Index Pool Fund Total - ------------------------------------------------------------------------------------------------------ Investments at fair value 236,654 668,225 414,516 - $19,421,230 Participants' loans receivable - - - 855,963 855,963 - ------------------------------------------------------------------------------------------------------ Net assets available for benefits 236,654 668,225 414,516 855,963 $20,277,193 ======================================================================================================
The accompanying notes are an integral part of these financial statements. 2 FMC CORPORATION 401(k) PLAN FOR EMPLOYEES COVERED BY A COLLECTIVE BARGAINING AGREEMENT Statement of Net Assets Available for Plan Benefits with Fund Information December 31, 1996
==================================================================================================================================== FMC Guaranteed First Money Active Stock International Stock Interest Essex Market Balanced Index Stock Fund Fund Fund Account Fund Z Fund Fund Z - ------------------------------------------------------------------------------------------------------------------------------------ Cash and cash equivalents $ -- -- -- -- -- -- -- Investments at fair value 2,394,428 19,385,044 5,389,479 650,922 82,376 5,965,387 718,239 - ------------------------------------------------------------------------------------------------------------------------------------ Total investments 2,394,428 19,385,044 5,389,479 650,922 82,376 5,965,387 718,239 Participants' loans receivable -- -- -- -- -- -- -- Contribution receivable 5,008 34,940 20,098 2,656 175 8,883 2,572 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets available for benefits $ 2,399,436 19,419,984 5,409,577 653,578 82,551 5,974,270 720,811 ====================================================================================================================================
==================================================================================================================================== Allocation Jennison Money Government Balanced Growth Market Income Loan Fund Z Fund Z Assets Z Fund Z Fund Total - ------------------------------------------------------------------------------------------------------------------------------------ Cash and cash equivalents -- -- 257,923 -- -- $ 257,923 Investments at fair value 119,768 1,203,823 -- 69,729 -- 35,979,195 - ------------------------------------------------------------------------------------------------------------------------------------ Total investments 119,768 1,203,823 257,923 69,729 -- 36,237,118 Participants' loans receivable -- -- -- -- 791,867 791,867 Contribution receivable 477 4,028 448 115 -- 79,400 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets available for benefits 120,245 1,207,851 258,371 69,844 791,867 $ 37,108,385 ====================================================================================================================================
The accompanying notes are an integral part of these financial statements. 3 FMC CORPORATION 401(k) PLAN FOR EMPLOYEES COVERED BY A COLLECTIVE BARGAINING AGREEMENT Statement of Changes in Net Assets Available for Plan Benefits with Fund Information
Year ended December 31, 1997 ===================================================================================================================== FMC Stable Mutual Fidelity Stock Value Clipper Qualified(Z) Sequoia Puritan Fund Fund Fund Fund Fund Fund - --------------------------------------------------------------------------------------------------------------------- Additions: Net appreciation (depreciation) in fair value of investments $ 138,684 -- 1,118 15,290 80,447 10,016 Interest and dividend income 4,217 581,659 30,333 6,791 3,527 45,385 Contributions 290,534 950,922 72,220 39,831 87,412 106,205 Loan repayments 18,124 54,157 1,566 858 3,084 3,960 - --------------------------------------------------------------------------------------------------------------------- Total additions 451,559 1,586,738 105,237 62,770 174,470 165,566 - --------------------------------------------------------------------------------------------------------------------- Deductions: Distributions to participants 53,355 576,361 3,200 3,142 3,408 15,675 Loans issued 96,740 246,566 2,018 -- 3,302 14,938 Administrative expenses 67 -- 42 -- -- 25 - --------------------------------------------------------------------------------------------------------------------- Total deductions 150,162 822,927 5,260 3,142 6,710 30,638 - --------------------------------------------------------------------------------------------------------------------- Net additions prior to interfund transfers and other changes 301,397 763,811 99,977 59,628 167,760 134,928 Interfund transfers (18,064) (2,754,075) 347,375 107,214 744,923 445,676 Net transferred in (out) (Note 5) (583,124) 9,457,658 (210,243) (103,327) (495,274) (82,415) - --------------------------------------------------------------------------------------------------------------------- Net additions (deductions) (299,791) 7,467,394 237,109 63,515 417,409 498,189 Net assets available for benefits at beginning of year 2,399,436 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------- Net assets available for benefits at end of year $ 2,099,645 7,467,394 237,109 63,515 417,409 498,189 =====================================================================================================================
Retirement U.S. Fidelity Low-Priced Diversified Government Equity Blue Chip Stock International Money Market Index Pool Loan Growth Fund Fund Fund Fund Fund Fund - ----------------------------------------------------------------------------------------------------------------------------------- Additions: Net appreciation (depreciation) in fair value of investments 660,378 23,004 77,514 -- 1,189,243 -- Interest and dividend income 396,408 46,541 8,667 26,861 1,802 -- Contributions 833,878 60,950 93,055 155,113 242,250 -- Loan repayments 40,066 484 1,957 2,851 9,818 (216,314) - ----------------------------------------------------------------------------------------------------------------------------------- Total additions 1,930,730 130,979 181,193 184,825 1,443,113 (216,314) - ----------------------------------------------------------------------------------------------------------------------------------- Deductions: Distributions to participants 121,883 -- 9,532 15,430 138,507 2,006 Loans issued 214,249 2,809 16,836 12,730 72,283 (830,290) Administrative expenses 75 27 -- 8 33 -- - ----------------------------------------------------------------------------------------------------------------------------------- Total deductions 336,207 2,836 26,368 28,168 210,823 (828,284) - ----------------------------------------------------------------------------------------------------------------------------------- Net additions prior to interfund transfers and other changes 1,594,523 128,143 154,825 156,657 1,232,290 611,970 Interfund transfers 137,998 787,476 145,104 (258,228) 304,187 -- Net transferred in (out) (Note 5) 5,009,297 (338,863) (63,275) 769,796 (1,121,961) (547,874) - ----------------------------------------------------------------------------------------------------------------------------------- Net additions (deductions) 6,741,818 576,756 236,654 668,225 414,516 64,096 Net assets available for benefits at beginning of year -- -- -- -- -- 791,867 - ----------------------------------------------------------------------------------------------------------------------------------- Net assets available for benefits at end of year 6,741,818 576,756 236,654 668,225 414,516 855,963 ===================================================================================================================================
The accompanying notes are an integral part of these financial statements. continued 4 FMC CORPORATION 401(k) PLAN FOR EMPLOYEES COVERED BY A COLLECTIVE BARGAINING AGREEMENT
Statement of Changes in Net Assets Available for Benefits with Fund Information (continued) Year ended December 31, 1997 - ----------------------------------------------------------------------------------------------------------------------------------- Harsco Guaranteed First Money Active Stock International Stock Interest Essex Market Balanced Index Stock Fund Fund Fund Account Fund Z Fund Fund Z - ---------------------------------------------------------------------------------------------------------------------------------- Additions: Net appreciation (depreciation) in fair value of investments $ 129 -- 489,189 13,173 4,297 896,466 69,431 Interest and dividend income -- 530,432 3,076 607 71 1,936 229 Contributions -- 745,215 410,633 54,013 7,056 174,720 55,053 Loan repayments -- 55,776 7,690 3,040 140 6,985 694 - ---------------------------------------------------------------------------------------------------------------------------------- Total additions 129 1,331,423 910,588 70,833 11,564 1,080,107 125,407 - ---------------------------------------------------------------------------------------------------------------------------------- Deductions: Distributions to participants -- 167,511 32,939 13,413 951 13,400 -- Loans issued -- 99,316 33,197 3,215 1,417 4,180 154 Administrative expenses -- 2,393 569 104 -- 30 -- - ---------------------------------------------------------------------------------------------------------------------------------- Total deductions -- 269,220 66,705 16,732 2,368 17,610 154 - ---------------------------------------------------------------------------------------------------------------------------------- Net additions prior to interfund transfers and other changes 129 1,062,203 843,883 54,101 9,196 1,062,497 125,253 Interfund transfers -- (57,299) 59,805 (11,488) 1,206 (21,482) (8,889) Net transferred in (out) (Note 5) (129) (20,424,888) (6,313,265) (696,191) (92,953) (7,015,285) (837,175) - ---------------------------------------------------------------------------------------------------------------------------------- Net additions (deductions) -- (19,419,984) (5,409,577) (653,578) (82,551) (5,974,270) (720,811) Net assets available for benefits at beginning of year -- 19,419,984 5,409,577 653,578 82,551 5,974,270 720,811 - ---------------------------------------------------------------------------------------------------------------------------------- Net assets available for benefits at end of year $ -- -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------- Allocation Jennison Money Government Balanced Growth Market Income Fund Z Fund Z Assets Z Fund Z Total - ------------------------------------------------------------------------------------------------------------------ Additions: Net appreciation (depreciation) in fair value of investments 4,549 168,323 -- (951) $ 3,840,300 Interest and dividend income 1,172 3,462 4,950 2,029 1,700,155 Contributions 13,616 84,800 16,369 4,118 4,947,963 Loan repayments 347 4,689 28 -- -- - ------------------------------------------------------------------------------------------------------------------ Total additions 19,684 261,274 21,347 5,196 10,038,418 - ------------------------------------------------------------------------------------------------------------------ Deductions: Distributions to participants 924 -- -- -- 1,171,637 Loans issued 865 2,499 2,976 -- -- Administrative expenses -- -- 75 -- 3,448 - ------------------------------------------------------------------------------------------------------------------ Total deductions 1,789 2,499 3,051 -- 1,171,085 - ------------------------------------------------------------------------------------------------------------------ Net additions prior to interfund transfers and other changes 17,895 258,775 18,296 5,196 8,863,333 Interfund transfers (1,657) (20,022) 70,240 -- -- Net transferred in (out) (Note 5) (136,483) (1,446,604) (346,907) (75,040) (25,694,525) - ------------------------------------------------------------------------------------------------------------------ Net additions (deductions) (120,245) (1,207,851) (258,371) (69,844) (16,831,192) Net assets available for benefits at beginning of year 120,245 1,207,851 258,371 69,844 37,108,385 - ------------------------------------------------------------------------------------------------------------------ Net assets available for benefits at end of year -- -- -- -- $ 20,277,193 - ------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 5 FMC CORPORATION 401(k) PLAN FOR EMPLOYEES COVERED BY A COLLECTIVE BARGAINING AGREEMENT
Statement of Changes in Net Assets Available for Plan Benefits with Fund Information Year ended December 31, 1996 FMC Guaranteed First Money Money Active Stock Stock Interest Essex Market Market Income Balanced Balanced Index Fund Fund Fund Account Fund Fund Fund Fund Z Fund - ------------------------------------------------------------------------------------------------------------------------------------ Additions: Net appreciation (depreciation) in fair value of investments $ 82,413 -- 1,039,553 29,313 -- (2,900) 3,481 5,769 989,898 Interest and dividend income -- 1,170,461 -- -- 10,488 2,557 2,177 2,373 88,741 Contributions 280,242 2,093,874 921,743 140,380 17,742 7,757 17,421 17,883 451,717 Loan repayments 6,199 165,410 11,971 2,066 41 -- 9,341 72 31,329 - ------------------------------------------------------------------------------------------------------------------------------------ Total additions 368,854 3,429,745 1,973,267 171,759 28,271 7,414 32,420 26,097 1,561,685 - ------------------------------------------------------------------------------------------------------------------------------------ Deductions: Distributions to participants 85,337 1,018,485 76,449 -- 10,411 -- -- -- 325,411 Loans issued -- -- -- -- -- -- -- -- -- Administrative expenses 167 41,234 2,814 979 -- -- -- 106 3,003 - ------------------------------------------------------------------------------------------------------------------------------------ Total deductions 85,504 1,059,719 79,263 979 10,411 -- -- 106 328,414 - ------------------------------------------------------------------------------------------------------------------------------------ Net additions (deductions) prior to interfund transfers 283,350 2,370,026 1,894,004 170,780 17,860 7,414 32,420 25,991 1,233,271 Interfund transfers (73,632) (383,928) 35,662 (87,987) (415,919) (64,139) (102,645) (12,085 39,552 - ------------------------------------------------------------------------------------------------------------------------------------ Net additions (deductions) 209,718 1,986,098 1,929,666 82,793 (398,059) (56,725) (70,225) 13,906 1,272,823 Net assets available for benefits at beginning of year 2,189,718 17,433,886 3,479,911 570,785 398,059 56,725 70,225 68,645 4,701,447 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets available for benefits at end of year $2,399,436 19,419,984 5,409,577 653,578 -- -- -- 82,551 5,974,270 - ------------------------------------------------------------------------------------------------------------------------------------ - ---------------------------------------------------------------------------------------------------------------------------------- Interna- Growth tional Allocation Jennison Money Government Stock Stock Balanced Growth Market Income Loan Fund Fund Z Fund Z Fund Z Assets Z Fund Z Fund Total - ---------------------------------------------------------------------------------------------------------------------------------- Additions: Net appreciation (depreciation) in fair value of investments 112,187 85,659 5,392 50,311 -- 1,243 -- $ 2,402,319 Interest and dividend income -- 9,597 836 -- 3,472 1,273 -- 1,291,975 Contributions 139,674 134,615 7,571 51,807 5,553 3,431 -- 4,291,410 Loan repayments 29,492 17,535 257 5,691 42 -- (222,454) 56,992 - ---------------------------------------------------------------------------------------------------------------------------------- Total additions 281,353 247,406 14,056 107,809 9,067 5,947 (222,454) 8,042,696 - ---------------------------------------------------------------------------------------------------------------------------------- Deductions: Distributions to participants 39,794 6,697 -- 203 4,261 168 -- 1,567,216 Loans issued -- -- -- -- -- -- 188,206 188,206 Administrative expenses 7 169 129 135 191 75 -- 49,009 - ---------------------------------------------------------------------------------------------------------------------------------- Total deductions 39,801 6,866 129 338 4,452 243 188,206 1,804,431 - ---------------------------------------------------------------------------------------------------------------------------------- Net additions (deductions) prior to interfund transfers 241,552 240,540 13,927 107,471 4,615 5,704 (410,660) 6,238,265 Interfund transfers (1,004,914) 43,520 106,318 1,100,380 253,756 64,140 501,921 -- - ---------------------------------------------------------------------------------------------------------------------------------- Net additions (deductions) (763,362) 284,060 120,245 1,207,851 258,371 69,844 91,261 6,238,265 Net assets available for benefits at beginning of year 763,362 436,751 -- -- -- -- 700,606 30,870,120 - ---------------------------------------------------------------------------------------------------------------------------------- Net assets available for benefits at end of year -- 720,811 120,245 1,207,851 258,371 69,844 791,867 $37,108,385 - ----------------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. FMC CORPORATION 401(k) PLAN FOR EMPLOYEES COVERED BY A COLLECTIVE BARGAINING AGREEMENT Notes to Financial Statements December 31, 1997 and 1996 ================================================================================ (1) Summary of the Plan The following summary of the FMC Corporation 401(k) Plan for Employees Covered by a Collective Bargaining Agreement (the Plan) is provided for general information purposes only. Participants should refer to the Plan document for a more complete description of the Plan's provisions. (a) General The Plan was established on April 1, 1987 to provide retirement and certain other benefits for eligible hourly employees of FMC Corporation (the Company). The Plan was amended and restated as of January 1, 1989 to reflect changes in the Internal Revenue Code. The Plan is a qualified salary reduction plan under Section 401(k) of the Internal Revenue Code. The Plan covers employees covered by a collective bargaining agreement at fourteen of the Company's locations. Employee eligibility in the Plan varies by location, as set forth in the Plan document. The Plan is a defined contribution plan and is funded by employees' contributions. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). The Plan is administered by the FMC Employee Welfare Benefits Plan Committee. (b) Trust Agreement Effective June 1, 1997, the Company and Fidelity Management Trust Company (the Trustee) established a trust (the Trust) for investment purposes as part of the Plan. The Trust replaced a predecessor trust established with Prudential Defined Contributions Services (Prudential). At the same time, the Trustee also became the Plan's recordkeeper. (c) Contributions Participants may currently elect to have their compensation reduced by an amount between 1% and 15% of the participant's compensation in the aggregate, subject to adjustments to reflect changes in the cost of living. The aggregate amount of such reductions is contributed to the Plan trust on a pretax basis, subject to Internal Revenue Service (IRS) limitations. Provisions of the Plan agreement regarding contributions are the same for all locations covered by the Plan. Participant contributions are nonforfeitable. (d) Investment Options Prior to June 1, 1997 --------------------- From January 1, 1996 through May 31, 1997, upon enrollment in the Plan, a participant could direct his or her contribution in 1% increments in any of the following investment options: 1) FMC Stock Fund -- Funds are invested in common stock of FMC Corporation. 2) Guaranteed Interest Fund -- Funds were invested in guaranteed interest contracts with the Prudential Insurance Company of America. From January 1, 1997 through May 31, 1997, guaranteed effective annual yield was approximately 6.4%. 3) First Essex Fund -- Funds were invested in common stocks of major, well established companies listed on the New York Stock Exchange. 7 FMC CORPORATION 401(k) PLAN FOR EMPLOYEES COVERED BY A COLLECTIVE BARGAINING AGREEMENT Notes to Financial Statement December 31, 1997 and 1996 ================================================================================ 4) Money Market Account -- Funds were invested in high quality money market instruments maturing in a short period of time (less than 12 months). 5) Active Balanced Fund Z -- Funds were invested in a combination of stocks, bonds, and lower risk money market instruments, such as short- term U.S. Treasury securities. 6) Stock Index Fund -- The investment objective was to provide investment results that correspond to the price and yield performance of Standard & Poor's 500 Composite Stock Price Index. 7) International Stock Fund Z -- Funds were invested in a diversified portfolio of securities which consist of equity securities of foreign issuers. 8) Money Market Fund (through September 19, 1996) -- Funds were invested in a Prudential institutional fund which sought to achieve a high level of income, preservation of principal, and maintenance of liquidity. 9) Income Fund (through September 19, 1996) -- Funds were invested primarily in U.S. Government securities, including U.S. Treasury bills, notes, bonds, and other debt securities issued by the U.S. Treasury. 10) Balanced Fund (through September 20, 1996) -- Funds were invested in a mix of equity securities, fixed income securities, and high quality money market instruments. 11) Growth Stock Fund (through September 20, 1996) -- Funds were invested primarily in securities of established companies with above average growth prospects. Effective September 21, 1996, the Money Market Fund, the Income Fund, the Balanced Fund, and the Growth Stock fund were deleted from the investment options. As a result, the assets in those funds were transferred to the remaining funds on the basis of comparable investment options in terms of risk and return. In addition, in September 1996, the following new funds were added in as the investment options: 1) Allocation Balanced Fund Z -- Funds were invested in a diversified portfolio of equity securities, debt obligations, and money market instruments. 2) Jennison Growth Fund Z -- Funds were invested primarily in equity securities (common stock, preferred stock, and securities convertible into common stock) of established companies with above average growth prospects. 3) Money Market Assets Z -- Funds were invested in high quality money market instruments with maturities of 13 months or less. 4) Government Income Fund Z -- Funds were invested primarily in U.S. Government securities, including U.S. Treasury bills, notes, bonds, and other debt securities issued by the U.S. Treasury. 8 FMC CORPORATION 401(k) PLAN FOR EMPLOYEES COVERED BY A COLLECTIVE BARGAINING AGREEMENT Notes to Financial Statement December 31, 1997 and 1996 ================================================================================ After May 31, 1997 ------------------ Upon enrollment in the Plan, a participant may direct his or her contribution in 1% increments in any of the following investment options: 1) FMC Stock Fund -- Funds are invested in common stock of FMC Corporation. 2) Stable Value Fund -- Funds are invested in investments contracts offered by insurance companies and other approved financial institutions. From June 1, 1997 through December 31, 1997, the guaranteed effective annual yield was approximately 7.2%. 3) Clipper Fund -- Funds are invested in undervalued common stocks and in long-term bonds. 4) Mutual Qualified (Z) Fund -- Funds are invested primarily in common and preferred stocks which are considered undervalued by the fund manager. 5) Sequoia Fund -- Fund investments are concentrated in a relatively small number of mostly U. S. headquartered companies with long-term growth potential. 6) Fidelity Puritan Fund -- Funds are invested in high-yielding U.S. and foreign securities, including those in emerging markets. 7) Fidelity Blue Chip Growth Fund -- Funds are invested primarily in common stocks of well-known and established companies. 8) Low-Priced Stock Fund -- Funds are heavily invested in undervalued stocks or out-of-favor stocks. 9) Diversified International Fund -- Funds are invested primarily in stocks of companies located outside the U. S. that are included in the Morgan Stanley EAFE Index. 10) Retirement Government Money Market Fund -- Funds are invested in short- term obligations of the U. S. Government or it agencies. 11) U. S. Equity Index Pool -- Funds are invested primarily in common stocks of the 500 companies that make up the S&P 500. Upon the change in the trusteeship from Prudential to the Fidelity Management Trust Company, the assets of the Plan, except for the assets held in the FMC Common Stock Fund, were transferred to the new funds offered by Fidelity on the basis of comparable investment options in terms of risk and return. The participants may change their investment options and move their account balances within the funds as frequently as they choose except with respect to the FMC Stock Fund, where the value of account can be moved when a participant reaches age 55. 9 FMC CORPORATION 401(k) PLAN FOR EMPLOYEES COVERED BY A COLLECTIVE BARGAINING AGREEMENT Notes to Financial Statement December 31, 1997 and 1996 ================================================================================ (e) Participant Accounts Each participant's account is credited with the participant's contribution and Plan earnings and charged with an allocation of administrative expenses. The benefit to which a participant is entitled is the benefit that can be provided from the participant's vested account. At December 31, 1997, 2,434 current and former employees participated in the Plan. (f) Eligibility and Vesting Depending on the collective bargaining group, employees are eligible to participate in the plan either immediately upon hire or after a waiting period of up to one year. Participants are immediately vested in their elective contributions plus actual earnings thereon. (g) Payment of Benefits On termination of service or attainment of age 59 1/2, any participant may elect to immediately receive a lump-sum distribution equal to the vested interest in his or her account. Participants age 55 or older or whose accounts are valued at not less than $3,500 may, upon termination, elect to defer their lump-sum distribution or receive annual installments over a ten-year period. (h) Expenses The compensation and expenses of the Trustee are paid by the Company. All other expenses of the Plan may be paid by the Trustee out of the assets of the Plan and constitute a charge upon the respective investment funds or upon the individual participants' accounts as provided in the Plan. (i) Withdrawals and Participants Loans Certain locations covered under the Plan allow participants to make hardship cash withdrawals (subject to income taxation and IRS penalties) of some or all of their vested account balances. Additionally, at certain locations, eligible participants may also receive money from the Plan in the form of loans. The minimum that may be borrowed from $1,000 to the maximum is the lesser of $50,000, as adjusted, or 50% of the participant's vested account balance. Loans must be repaid within 60 months with interest at the prevailing market rates or some other reasonable rate as determined by the Plan's Trustee. Participant loans outstanding as of December 31, 1997 and 1996 were $855,963 and $791,867, respectively, and they are reported under the Loan Fund. (j) Plan Termination Although it has not expressed any intent to do so, the Company has the right under the Plan to terminate the Plan subject to the provisions of the Plan and ERISA. (2) Summary of Significant Accounting Policies The following are the significant accounting policies followed by the Plan: (a) Basis of Accounting The Plan's financial statements are prepared on the accrual basis of accounting. 10 FMC CORPORATION 401(k) PLAN FOR EMPLOYEES COVERED BY A COLLECTIVE BARGAINING AGREEMENT Notes to Financial Statement December 31, 1997 and 1996 ================================================================================ (b) Investments Security transactions are recorded in the financial statements on a settlement-date basis, which does not differ materially from a trade-date basis. (c) Valuation of Investments Quoted or estimated market prices are used to value investments except for certain contracts with banks and insurance companies which guarantee repayment of principal with interest at a fixed or fixed minimum rate for a specified period of time. These contracts are valued at contract value which approximates fair value. (d) Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires the plan administrator 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 changes in net assets and liabilities during the reporting period. Actual results could differ from these estimates, but the plan administrator does not believe such differences will materially affect the Plan's net assets available for benefits or changes in net assets available for benefits. (3) Investments Investments at fair value which represent 5% or more of the Plan's net assets available for benefits are separately identified below:
============================================================================== December 31, ------------------------------ 1997 1996 - ------------------------------------------------------------------------------ FMC Stock Fund $2,099,645 2,394,428 Stable Value Fund 7,467,394 - Blue Chip Stock Fund 6,741,818 - First Essex Fund - 5,389,479 Guaranteed Interest Fund - 19,385,044 Stock Index Fund - 5,965,387 ==============================================================================
11 FMC CORPORATION 401(k) PLAN FOR EMPLOYEES COVERED BY A COLLECTIVE BARGAINING AGREEMENT Notes to Financial Statements December 31, 1997 and 1996
===================================================================================== During 1997 and 1996, the Plan's investments (including investments bought, sold, and held during the year) appreciated (depreciated) as follows: ===================================================================================== Year ended December 31, ------------------------------- 1997 1996 - ------------------------------------------------------------------------------------- FMC Stock Fund $ 138,684 82,413 Harsco Stock Fund 129 - First Essex Fund 489,189 1,039,553 Money Market Account 13,173 29,313 Income Fund - (2,900) Balanced Fund - 3,481 Active Balanced Fund Z 4,297 5,769 Stock Index Fund 896,466 989,898 Growth Stock Fund - 112,187 International Stock Fund Z 69,431 85,659 Allocation Balanced Fund Z 4,549 5,392 Jennison Growth Fund Z 168,323 50,311 Government Income Fund Z (951) 1,243 Clipper Fund 1,118 - Mutual Qualified (Z) Fund 15,290 - Sequoia Fund 80,447 - Fidelity Puritan Fund 10,016 - Fidelity Blue Chip Stock Fund 660,378 - Low-Priced Stock Fund 23,004 - Diversified International Fund 77,514 - U. S. Equity Index Pool Fund 1,189,243 - - ------------------------------------------------------------------------------------- $3,840,300 2,402,319 =====================================================================================
(4) Federal Income Tax Status The Company has not submitted the Plan to the IRS for consideration of the Plan's tax status. However, the plan administrator and the Plan's counsel intend to apply for a determination letter with the IRS and believe the Plan is designed and is currently being operated in compliance with the applicable requirements of the Internal Revenue Code. (5) Plan Merger and Asset Transfers On June 1, 1997 the Plan received $227,303 from the Moorco International Inc. Incentive Savings Plan for union hourly employees as a result of the plans' merger. On October 7, 1997, the Plan transferred $23,780,184 to the United Defense, L. P. York Union Employees' Thrift and Stock Purchase Plan due to the sale of FMC Corporation's defense business to the Carlyle Group. In addition, the Plan transferred $2,141,644 to alternative funding agencies due to employee transfers and turnover, and to the FMC Salaried Employees' Thrift and Stock Purchase Plan due to moving certain hourly employees to salaried employee status. 12 FMC CORPORATION 401(k) PLAN Schedule 1 FOR EMPLOYEES COVERED BY A COLLECTIVE BARGAINING AGREEMENT Item 27a--Schedule of Assets Held for Investment Purposes
- --------------------------------------------------------------------------------------------------------------------------- Description of investment including Current value Identity of issue, borrower, lessor maturity date, rate of interest at December 31, or similar party collateral, par, or maturity value Cost 1997 - ---------------------------------------------------------------------------------------------------------------------------- FMC Common Stock Fund FMC Corporation Stock $ * 2,099,645 Party in Interest 31,192 shares Stable Value Fund Portfolio includes investment contracts offered by major insurance companies * 7,467,394 and other approved financial institutions Clipper Fund Stock Long-term Growth Fund * 237,109 Mutual Qualified (Z) Fund Stock Long-term Growth Fund * 63,515 Sequoia Fund Stock Long-term Growth Fund * 417,409 Fidelity Puritan Fund Stock and Bond Fund * 498,189 Fidelity Blue Chip Growth Fund Large Companies Stock Fund * 6,741,818 Low-Priced Stock Fund Growth Mutual Fund * 576,756 Diversified International Fund Growth Mutual Fund of Foreign Companies * 236,654 Retirement Government Money Market Portfolio Money Market Mutual Fund * 668,225 U. S. Equity Index Pool Stock Index Fund * 414,516 Participants' loans receivable Varying rate of interest 7.2% - 10.0% * 855,963 - -------------------------------------------------------------------------------------------------------------------------- Total assets held for investment purposes $ -- 20,277,193 - --------------------------------------------------------------------------------------------------------------------------
* Cost information not available See accompanying independent auditors' report. 13 FMC CORPORATION 401(k) PLAN Schedule 2 FOR EMPLOYEES COVERED BY A COLLECTIVE BARGAINING AGREEMENT Item 27d--Schedule of 5% Reportable Transactions Year ended December 31, 1997
================================================================================================================================ Current value of Expenses asset on Description Purchase Selling incurred Cost of transaction Net gain Identity of party involved of security price price with trade security date (loss) - -------------------------------------------------------------------------------------------------------------------------------- Fidelity Institutional Retirement Stable Value Fund $21,805,797 14,422,875 -- 14,422,875 14,422,875 -- Services Company Number of Transactions: 213 Fidelity Institutional Retirement FMC Stock Fund * 3,536,150 -- -- -- -- -- Services Company Number of Transactions: 83 Fidelity Institutional Retirement Blue Chip Growth Fund 9,886,609 3,805,169 -- 3,511,687 3,805,169 293,482 Services Company Number of Transactions: 188 Fidelity Institutional Retirement U.S. Equity Index Fund 8,034,127 8,808,855 -- 7,671,377 8,808,855 1,137,478 Services Company Number of Transactions: 139 ================================================================================================================================
* Party in Interest See accompanying independent auditors' report. 14 ================================================================================ EXHIBIT INDEX NUMBER IN EXHIBIT TABLE DESCRIPTION - ------------- ----------- 10.1 FMC Employees' 401(k) Plan for Employees Covered by a Collective Bargaining Agreement (incorporated by reference from Exhibit 4.5 to the Form S-8 filed on September 1, 1998). 10.2 Consent of KPMG Peat Marwick LLP EX-23.1 2 CONSENT OF KPMG PEAT MARWICK LLP EXHIBIT 10.2 CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS The Employee Welfare Benefits Plan Committee of FMC Corporation: We consent to incorporation by reference herein of our report dated June 26, 1998, related to the statements of net assets available for plan benefits of FMC Corporation 401(k) Plan for Employees Covered by a Collective Bargaining Agreement (the Plan) as of December 31, 1997 and December 31, 1996, and the related statements of changes in net assets available for plan benefits for each of the years in the two year period ended December 31, 1997, which report appears in the December 31, 1997 annual report on Form 11-K of FMC Corporation 401(k) Plan for Employees Covered by a Collective Bargaining Agreement for the year ended December 31, 1997. /s/ KPMG Peat Marwick LLP Chicago, Illinois August 31, 1998 -----END PRIVACY-ENHANCED MESSAGE-----