-----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, FkfaiU4YsVbDhjR6Ruin/eq8OPQhcKTdPI+slvQQXUki9ukZ5LTah9sAyBZNwYEM 3XHqxrzWhltPldLnZkAXUg== 0000893220-96-001105.txt : 19960702 0000893220-96-001105.hdr.sgml : 19960702 ACCESSION NUMBER: 0000893220-96-001105 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960701 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: HERCULES INC CENTRAL INDEX KEY: 0000046989 STANDARD INDUSTRIAL CLASSIFICATION: PLASTICS, MATERIALS, SYNTH RESINS & NONVULCAN ELASTOMERS [2821] IRS NUMBER: 510023450 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-00496 FILM NUMBER: 96589407 BUSINESS ADDRESS: STREET 1: 1313 N MARKET ST STREET 2: HERCULES PLZ CITY: WILMINGTON STATE: DE ZIP: 19894 BUSINESS PHONE: 3025945000 MAIL ADDRESS: STREET 1: HERCULES PLAZA STREET 2: RM 8151 NW CITY: WILMINGTON STATE: DE ZIP: 19894-0001 FORMER COMPANY: FORMER CONFORMED NAME: HERCULES POWDER CO DATE OF NAME CHANGE: 19680321 11-K 1 FORM 11-K HERCULES INC. SAVINGS/INVESTMENT PLAN 1 COMMISSION FILE NO. 1-496 - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 11-K ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 1995 Title of the plan: --------------------------- HERCULES INCORPORATED SAVINGS AND INVESTMENT PLAN Issuer of the securities held pursuant to the plan: ----------------------------------------------------------------------- HERCULES INCORPORATED Hercules Plaza 1313 North Market Street Wilmington, Delaware 19894 2 HERCULES INCORPORATED SAVINGS AND INVESTMENT PLAN -------------------------------------------------------------- FINANCIAL STATEMENTS -------------------------------------------- STATEMENT OF ASSETS, LIABILITIES, AND PLAN EQUITY December 31, 1995 and 1994 STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY Years ended December 31, 1995, 1994, and 1993 For ANNUAL REPORT FORM 11-K 1 3 HERCULES INCORPORATED SAVINGS AND INVESTMENT PLAN STATEMENT OF ASSETS, LIABILITIES, AND PLAN EQUITY WITH FUND INFORMATION DECEMBER 31, 1995
HERCULES INCORPORATED BLENDED COMMON INTEREST RATE EQUITY BALANCED STOCK SAVINGS FUND FUND ASSET FUND --------------------------------------------------------------------- ASSETS Investments $100,439,798(a) $153,802,968 $30,778,359(b) $3,771,170(c) Receivable from Company (19,061) (45,125) 22,496 (1,219) Cash 1,538,304 4,599,287 182,040 31,468 ------------ ------------ ----------- ---------- Total Assets $101,959,041 $158,357,130 $30,982,895 $3,801,419 ============ ============ =========== ========== LIABILITIES & EQUITY Other Liabilities $ 0 $ 2,709,859 $ 401,477 $ 737 Plan Equity 101,959,041 155,647,271 30,581,418 3,800,682 ------------ ------------ ----------- ---------- Total Liabilities & Equity $101,959,041 $158,357,130 $30,982,895 $3,801,419 ============ ============ =========== ==========
FIDELITY MAGELLAN GOV'T FUND BOND FUND LOAN FUND TOTAL ----------------- --------------- ---------------- ----------------- ASSETS Investments $26,518,658(d) $2,726,446(e) $9,995,295(f) $328,032,694 Receivable from Company 26,010 448 0 (16,451) Cash 178,953 25,043 (39,658) 6,515,437 ------------ ---------- ---------- ------------ Total Assets $26,723,621 $2,751,937 $9,955,637 $334,531,680 =========== ========== =========== ============ LIABILITIES & EQUITY Other Liabilities $ 5,833 $ 63,032 $ 30,505 $ 3,211,443 Plan Equity 26,717,788 2,688,905 9,925,132 331,320,237 ------------ ----------- ----------- ------------ Total Liabilities & Equity $26,723,621 $2,751,937 $9,955,637 $334,531,680 =========== ========== ========== ============
(a) At fair value. Cost: $33,427,384. Shares: 1,781,637. (b) At fair value. Cost: $19,235,342. (c) At fair value. Cost: $3,580,959. (d) At fair value. Cost: $23,075,217. (e) At fair value. Cost: $2,516,930. (f) Represents loans to plan participants. The accompanying notes are an integral part of the financial statements. 2 4 HERCULES INCORPORATED SAVINGS AND INVESTMENT PLAN STATEMENT OF ASSETS, LIABILITIES, AND PLAN EQUITY WITH FUND INFORMATION DECEMBER 31, 1994
HERCULES INCORPORATED BLENDED COMMON INTEREST RATE EQUITY BALANCED STOCK SAVINGS FUND FUND ASSET FUND --------------------------------------------------------------------- ASSETS Investments $ 115,968,503(a) $297,707,734 $ 38,249,289(b) $ 3,803,098(c) Receivable from Company 21,469 (15,226) 2,083 48,519 Cash 690,490 12,275,974 346,172 40,308 ------------- ------------ ------------ ----------- Total Assets $116,680,462 $309,968,482 $38,597,544 $3,891,925 ============ ============ =========== ========== LIABILITIES & EQUITY Other Liabilities $ 0 $ 140,628 $ 305,446 $ 428 Advances from Company 28,559 0 0 37,540 Plan Equity 116,651,903 309,827,854 38,292,098 3,853,957 ------------- ------------ ----------- ---------- Total Liability & Equity $116,680,462 $309,968,482 $38,597,544 $3,891,925 ============ ============ =========== ==========
FIDELITY MAGELLAN GOV'T FUND BOND FUND LOAN FUND TOTAL ------------------------------------------------------------------ ASSETS Investments $ 24,599,610(d) $4,641,771(e) $18,072,657(f) $503,042,662 Receivable from Company (1,522) 2,371 0 57,694 Cash 281,788 52,402 40,489 13,727,623 ------------ ----------- ------------ ------------ Total Assets $ 24,879,876 $4,696,544 $18,113,146 $516,827,979 ============ ========== =========== ============ LIABILITIES & EQUITY Other Liabilities $ 27,773 $ 27,498 $ 30,506 $ 532,279 Advances from Company 0 0 0 66,099 Plan Equity 24,852,103 4,669,046 18,082,640 516,229,601 ----------- ----------- ------------ ------------ Total Liability & Equity $ 24,879,876 $4,696,544 $18,113,146 $516,827,979 ============ ========== =========== ============
(a) At fair value. Cost: $49,364,025. Shares: 3,012,168. (b) At fair value. Cost: $30,018,711. (c) At fair value. Cost: $3,979,476. (d) At fair value. Cost: $25,765,510. (e) At fair value. Cost: $4,515,388. (f) Represents loans to plan participants. The accompanying notes are an integral part of the financial statements. 3 5 HERCULES INCORPORATED SAVINGS AND INVESTMENT PLAN STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY WITH FUND INFORMATION YEAR ENDED DECEMBER 31, 1995
HERCULES INCORPORATED BLENDED COMMON INTEREST RATE EQUITY BALANCED STOCK SAVINGS FUND FUND ASSET FUND ---------------------------------------------------------------------- CONTRIBUTIONS: Participating Employees $ 2,044,372 $ 8,415,340 $ 2,098,708 $ 248,434 Company Contributions 5,430,975 0 0 0 -------------- -------------- ------------- ------------ Subtotal Contributions 7,475,347 8,415,340 2,098,708 248,434 Interplan Transfers 2,523,182 27,580,292 (400,632) 77,310 Investment Income: Cash Dividends 1,944,229 0 0 210,050 Interest 73,087 12,570,549 3,039 2,383 Change in Market Value 12,170,632 144,991 4,510,316 441,711 -------------- -------------- ------------- ------------ Total $ 24,186,477 $ 48,711,172 $ 6,211,431 $ 979,888 Withdrawals (32,742,728) (201,340,609) (16,544,774) (2,214,921) Interfund Transfers (6,136,611) (1,551,146) 2,622,663 1,181,758 -------------- -------------- ------------- ------------ Change in Plan Equity (14,692,862) (154,180,583) (7,710,680) (53,275) Plan Equity, Dec. 31, 1994 116,651,903 309,827,854 38,292,098 3,853,957 -------------- -------------- ------------- ------------ Plan Equity, Dec. 31, 1995 $101,959,041 $155,647,271 $ 30,581,418 $ 3,800,682 ============== ============== ============= =============
FIDELITY MAGELLAN GOV'T FUND BOND FUND LOAN FUND TOTAL --------------------------------------------------------------- CONTRIBUTIONS: Participating Employees $ 1,744,393 $ 296,892 $ 0 $ 14,848,139 Company Contributions 0 0 0 5,430,975 ------------ ----------- ------------- ------------- Subtotal Contributions 1,744,393 296,892 0 20,279,114 Interplan Transfers 618,841 84,315 0 30,483,308 Investment Income: Cash Dividends 1,486,463 0 0 3,640,742 Interest 0 474 906,993 13,556,525 Change in Market Value 4,884,536 190,947 0 22,343,133 ------------ ----------- ------------- ------------- Total $ 8,734,233 $ 572,628 $ 906,993 $ 90,302,822 Withdrawals (10,296,430) (2,833,580) (9,239,144) (275,212,186) Interfund Transfers 3,427,882 280,811 174,643 0 ------------ ----------- ------------- ------------- Change in Plan Equity 1,865,685 (1,980,141) (8,157,508) (184,909,364) Plan Equity, Dec. 31, 1994 24,852,103 4,669,046 18,082,640 516,229,601 ------------ ----------- ------------- ------------- Plan Equity, Dec. 31, 1995 $ 26,717,788 $ 2,688,905 $ 9,925,132 $ 331,320,237 ============= =========== ============= =============
The accompanying notes are an integral part of the financial statements. 4 6 HERCULES INCORPORATED SAVINGS AND INVESTMENT PLAN STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY WITH FUND INFORMATION YEAR ENDED DECEMBER 31, 1994
HERCULES INCORPORATED BLENDED COMMON INTEREST RATE EQUITY BALANCED STOCK SAVINGS FUND FUND ASSET FUND ---------------------------------------------------------------------- Contributions: Participating Employees $ 2,399,459 $ 15,441,854 $ 3,368,547 $ 347,896 Company Contributions 8,688,258 0 0 0 -------------- ------------ ----------- ---------- Subtotal Contributions 11,087,717 15,441,854 3,368,547 347,896 Interplan Transfers 755,632 23,624,171 455,888 9,290 Investment Income: Cash Dividends 2,297,887 68,351 0 103,000 Interest 48,034 21,452,338 6,687 1,732 Change in Market Value 1,157,555 3,275 484,814 (184,911) -------------- ------------ ----------- ---------- Total $ 15,346,825 $ 60,589,989 $ 4,315,936 $ 277,007 Withdrawals (15,884,777) (76,175,789) (4,702,135) (185,420) Interfund Transfers (12,221,094) 5,842,845 (754,686) 1,407,738 -------------- ------------ ----------- ---------- Change in Plan Equity (12,759,046) (9,742,955) (1,140,885) 1,499,325 Plan Equity, Dec. 31, 1993 129,410,949 319,570,809 39,432,983 2,354,632 -------------- ------------ ----------- ---------- Plan Equity, Dec. 31, 1994 $ 116,651,903 $309,827,854 $38,292,098 $3,853,957 ============== ============ =========== ==========
FIDELITY MAGELLAN GOV'T FUND BOND FUND LOAN FUND TOTAL ------------------------------------------------------------------ Contributions: Participating Employees $ 2,450,782 $ 533,315 $ 0 $ 24,541,853 Company Contributions 0 0 0 8,688,258 ------------ ---------- ---------- -------------- Subtotal Contributions 2,450,782 533,315 0 33,230,111 Interplan Transfers (184,362) (149,227) (201,206) 24,310,186 Investment Income: Cash Dividends 928,900 0 0 3,398,138 Interest 3,778 1,451 1,461,538 22,975,558 Change in Market Value (1,425,825) 15,212 0 50,120 ------------ ---------- ---------- -------------- Total $ 1,773,273 $ 400,751 $ 1,260,332 $ 83,964,113 Withdrawals (1,930,882) (732,490) (1,227,730) (100,839,223) Interfund Transfers 6,148,138 (12,804) 410,137 0 ------------ ---------- ---------- -------------- Change in Plan Equity 5,990,529 (344,543) (377,535) (16,875,110) Plan Equity, Dec. 31, 1993 18,861,574 5,013,589 18,460,175 533,104,711 ------------ ---------- ----------- -------------- Plan Equity, Dec. 31, 1994 $24,852,103 $4,669,046 $18,082,640 $ 516,229,601 =========== ========== =========== ==============
The accompanying notes are an integral part of the financial statements. 5 7 HERCULES INCORPORATED SAVINGS AND INVESTMENT PLAN STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY WITH FUND INFORMATION YEAR ENDED DECEMBER 31, 1993
HERCULES INCORPORATED BLENDED COMMON INTEREST RATE EQUITY BALANCED STOCK SAVINGS FUND FUND ASSET FUND --------------------------------------------------------------------- Contributions: Participating Employees $ 1,556,211 $ 18,518,991 $ 4,114,550 $ 145,163 Company Contributions 10,906,326 0 0 0 -------------- ------------- ------------ ----------- Subtotal Contributions $ 12,462,537 $ 18,518,991 $ 4,114,550 $ 145,163 Interplan Transfers 1,064,589 23,299,237 2,096,507 0 Investment Income: Cash Dividends 2,907,669 0 0 13,330 Interest 48,612 22,000,435 10,102 1,806 Change in Market Value 62,819,424 0 3,673,129 22,270 -------------- ------------- ------------ ----------- Total $ 79,302,831 $ 63,818,663 $ 9,894,288 $ 182,569 Withdrawals (7,336,948) (28,698,002) (3,136,274) (36,837) Interfund Transfers (28,606,655) 12,572,960 236,266 2,208,900 -------------- ------------- ------------ ----------- Change in Plan Equity 43,359,228 47,693,621 6,994,280 2,354,632 Plan Equity, Dec. 31, 1992 86,051,721 271,877,188 32,438,703 0 -------------- ------------- ------------ ----------- Plan Equity, Dec. 31, 1993 $ 129,410,949 $ 319,570,809 $ 39,432,983 $ 2,354,632 ============== ============= ============ ===========
FIDELITY MAGELLAN GOV'T FUND BOND FUND LOAN FUND TOTAL ----------------------------------------------------------------- Contributions: Participating Employees $ 1,118,723 $ 643,499 $ 0 $ 26,097,137 Company Contributions 0 0 0 10,906,326 ------------ ----------- ----------- ------------- Subtotal Contributions $ 1,118,723 $ 643,499 $ 0 $ 37,003,463 Interplan Transfers 4,051,278 6,260 1,546,388 32,064,259 Investment Income: Cash Dividends 1,089,151 0 0 4,010,150 Interest 7,053 68,460 1,506,651 23,643,119 Change in Market Value 266,814 121,165 0 66,902,802 ------------ ----------- ----------- ------------- Total $ 6,533,019 $ 839,384 $ 3,053,039 $163,623,793 Withdrawals (252,772) (827,037) (585,535) (40,873,405) Interfund Transfers 12,581,327 (20,387) 1,027,589 0 ------------ ----------- ----------- ------------- Change in Plan Equity 18,861,574 (8,040) 3,495,093 122,750,388 Plan Equity, Dec. 31, 1992 0 5,021,629 14,965,082 410,354,323 ------------ ----------- ----------- ------------- Plan Equity, Dec. 31, 1993 $ 18,861,574 $ 5,013,589 $18,460,175 $533,104,711 ============ =========== =========== ============
The accompanying notes are an integral part of the financial statements. 6 8 NOTES TO FINANCIAL STATEMENTS 1. Summary of Significant Accounting Policies The Hercules Incorporated Savings and Investment Plan (the Plan) is a defined-contribution plan subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). The preparation of financial statements in conformity with generally accepted accounting principles requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Plan provides for various investment options in any combination of stocks, bonds, fixed income securities, mutual funds, and other investment securities. Investment securities are exposed to various risks, such as interest rate, market, and credit. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is at least reasonably possible that changes in risks in the near term would materially affect participants' account balances and the amounts reported in the statement of assets, liabilities, and plan equity and the statement of income and changes in plan equity. The financial statements of the Plan are prepared under the accrual method of accounting. Investments in the Plan are carried at fair value. The fair value of the common stock of Hercules Incorporated is based upon the price at which the stock closed on the New York Stock Exchange on the last business day of the year. The Blended Interest Rate Savings Fund is carried at cost plus accrued interest, which is equivalent to contract value, which approximates fair value. The market value of the Equity Fund, the Balanced Asset Fund, the Government Bond Fund and the Fidelity Magellan Fund is based on the fair value of the underlying securities held by the fund. Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis and dividends are recorded on the ex-dividend date. Withdrawals are recorded upon distribution. The Plan provides that participants who retire from the Company may elect, upon retirement, an Optional Valuation Date (OVD) for determining their final withdrawal. The OVD is the last business day of any month following retirement up to age 70 in which the distribution is requested. The Plan presents in the statement of income and changes in plan equity the net appreciation (depreciation) in fair value of its investments (under the caption Change in Market Value), which consists of the realized gains or losses and the change in unrealized appreciation (depreciation) on those investments. The unrealized appreciation (depreciation) for all investments at December 31, 1995, December 31, 1994, December 31, 1993, and January 1, 1993 was $82,398,598, $73,619,161, $87,056,699, and $35,861,479, respectively. 2. INVESTMENT PROGRAM Upon hire, employees are immediately eligible to participate in the Plan and obtain immediate, nonforfeitable (vested) rights to the full market value of their account. At time of enrollment in the Plan, a participant, by giving written notice to the Trustee, shall direct the investment of his monthly savings in any of the following medium, or a combination thereof, providing his monthly savings in any one medium selected is not less than 20% of the total amount saved and is stated in 5% increments. During May 1993, the Money Market Fund was eliminated and a U.S. Government Bond Fund, a Balanced Asset Management Fund and a Long-Term Capital Appreciation (Fidelity Magellan) Fund were added as investment media under the Plan. Participants with balances in the Money Market Fund were provided the option to transfer their balances to other investment funds or have their balances automatically transferred to the new U.S. Government Bond Fund. The following investment medium are available under the Savings and Investment Plan. 1. Hercules Incorporated Common Stock. 2. A Blended Interest Rate Savings Fund, wherein savings so directed are deposited with various major insurance companies, who guarantee the payment of principal. For 1995, the blended yield of these contracts was approximately 6.6%. 3. Equity Fund. This Fund is made up of substantially all the stocks that make up the Standard and Poor's 500 Index in such a mix as to track as closely as possible the movement of the Index. 4. U.S. Government Bond Fund, which invests in U.S. Treasury and Agency issues and fully insured savings bank deposits. 5. Balanced Asset Management Fund, which invests in a managed portfolio of stocks, bonds and money market instruments. 7 9 6. Fidelity Magellan Fund is a Long-Term Capital Appreciation (Fidelity) Fund, which invests in common stocks, and securities convertible to common stock, issued by companies operating in the U.S. and abroad as well as foreign companies. The Company contribution, as defined in the Plan, is equal to 50% of that portion of the participants' contribution which does not exceed 6% of earnings or base pay and must be invested in common stock of Hercules Incorporated. Total non-participant directed assets in the Hercules Incorporated Common Stock Fund were approximately $70,343,000 and $84,502,000 at December 31, 1995 and 1994, respectively. There were 4,808 participants at December 31, 1995 who participated in one or more of the six investment media. At December 31, 1995 the number of participants selecting each of the investment media for their contributions was as follows:
Hercules Incorporated Common Stock ......................... 4,347 Blended Interest Rate Savings Fund ......................... 4,120 Equity Fund................................................. 1,415 Balanced Asset Fund......................................... 308 Fidelity Magellan Fund...................................... 1,141 Government Bond Fund........................................ 423
3. INTERPLAN TRANSFERS Interplan transfers represent transfers from acquired company plans and the Hercules Incorporated Employee Savings Plan and rollovers of new employees' distributions from defined contribution plans. Effective January 1, 1993, the net assets of the Capital Accumulation Plan (approximately $31 MM) of the Aqualon Company (a wholly-owned subsidiary of Hercules Incorporated) were transferred to the Hercules Incorporated Savings and Investment Plan. Participant's benefits under the Plan were substantially unaffected by the transfer of net assets. 4. TAX STATUS The United States Treasury Department advised on June 21, 1995, that the Plan as amended through January 1, 1995 is a qualified trust under Section 401(a) of the Internal Revenue Code and is therefore exempt from Federal income taxes under provisions of Section 501(a) of the code. The Plan administrator believes that the Plan is currently being operated in compliance with the applicable provisions of the Internal Revenue Code. The Federal Income Tax status of the employee is covered under the caption "Federal Tax Aspects" of the Summary Plan Description dated November 1, 1990 and supplemented by periodic benefit updates. 5. INVESTMENTS Investments that represent five percent or more of Plan Equity at December 31, 1995 or 1994 are as follows:
1995 1994 ---- ---- Hercules Incorporated Common Stock $100,439,798 $115,968,503 Bankers Trust Equity Index Fund $30,778,359 $38,249,289 Group Annuity Contract with Peoples Life Insurance Company (#BDA 00002TR) $20,918,395 $36,743,923 Group Annuity Contract with Provident Life and Accident Insurance Company (#630-05537) $16,790,244 $29,629,378 Group Annuity Contract with Metropolitan Life Insurance Company (#12833) $17,635,628 -- GIC Prudential (#GA 8083) $23,286,112 --
8 10 6. DIVESTITURE On March 15, 1995 Hercules completed the sale of its Aerospace business to Alliant Techsystems Inc. (Alliant). The sale agreement provided for a transfer of plan assets (approximately $200 million) and assumption of plan obligations to Alliant as of April 1, 1995. 7. RECLASSIFICATION Amounts allocated to persons who have elected to withdraw from the Plan but have not been paid as of year end are reported as part of plan equity. Previously these amounts were reported in liability for withdrawals. The 1994 information has been restated to conform with the 1995 presentation. 8. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500 The following is a reconciliation of plan equity per the financial statements to the Form 5500:
DECEMBER 31, ------------------------------- 1995 1994 ---- ---- Plan equity per the financial statements $331,320,237 $516,229,601 Amounts allocated to withdrawing participants (4,921,995) (8,682,887) ------------ ------------ Plan equity per the Form 5500 $326,398,242 $507,546,714 ============ ============
The following is a reconciliation of withdrawals per the financial statements to the Form 5500:
YEAR ENDED DECEMBER 31, 1995 ----------------- Withdrawals per the financial statements $275,212,186 Add: Amounts allocated to withdrawing participants at December 31, 1995 4,921,995 Less: Amounts allocated to withdrawing participants at December 31, 1994 (8,682,887) ------------- Withdrawals per the Form 5500 $271,451,294 ============
Amounts allocated to withdrawing participants are recorded on the Form 5500 for benefit claims that have been processed and approved for payment prior to December 31 but not yet paid as of that date. 9 11 REPORT OF INDEPENDENT ACCOUNTANTS To the Board of Directors, Hercules Incorporated, Wilmington, Delaware We have audited the accompanying statements of assets, liabilities, and plan equity with fund information of Hercules Incorporated Savings and Investment Plan as of December 31, 1995 and 1994, and the related statements of income and changes in plan equity with fund information for each of the three years in the period ended December 31, 1995. These financial statements are the responsibility of the Plan's administrators. 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 financial position of Hercules Incorporated Savings and Investment Plan as of December 31, 1995 and 1994, and its income and changes in plan equity for each of the three years in the period ended December 31, 1995 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 fund information in the accompanying statements of assets, liabilities, and plan equity of the Hercules Incorporated Savings and Investment Plan and the related statements of income and changes in plan equity is presented for purposes of additional analysis rather than to present the financial position and income and changes in plan equity of each fund. The fund information has 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. Coopers & Lybrand L.L.P 2400 Eleven Penn Center Philadelphia, Pennsylvania 19103 June 28, 1996 10 12 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the Plan) have duly caused this annual report to be signed by the undersigned hereunto duly authorized. HERCULES INCORPORATED SAVINGS AND INVESTMENT PLAN H. Eugene McBrayer ------------------------------------------------- H. Eugene McBrayer, Chairman Finance Committee, Hercules Incorporated, Plan Administrator Date: June 28, 1996 11 13 EXHIBIT INDEX Number Description 23 Consent of Independent Accountants. 12 EX-23 2 CONSENT OF INDEPENDENT ACCOUNTANTS 1 EXHIBIT 23. CONSENT OF INDEPENDENT ACCOUNTANTS. We consent to the incorporation by reference in the registration statement of Hercules Incorporated on Form S-8 (Registration No. 33-37279) of our report dated June 28, 1996 on our audits of the financial statements of Hercules Incorporated Savings and Investment Plan as of December 31, 1995 and 1994 and for each of the three years in the period ended December 31, 1995, which report is included in this Annual Report on Form 11-K. Coopers & Lybrand L.L.P 2400 Eleven Penn Center Philadelphia, Pennsylvania 19103 June 28, 1996 13 -----END PRIVACY-ENHANCED MESSAGE-----