-----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, U9Opy/8hIBK0/SdhQg+Z8PRgLkEkAyEj3S0Pkb6aKnsYllVXsFAMw2Sz4fPeXj90 P7umQ3Q5twqMCWEX8Xsxhw== 0001047469-98-025802.txt : 19980630 0001047469-98-025802.hdr.sgml : 19980630 ACCESSION NUMBER: 0001047469-98-025802 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980629 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: OGDEN CORP CENTRAL INDEX KEY: 0000073902 STANDARD INDUSTRIAL CLASSIFICATION: AIRPORTS, FLYING FIELDS & AIRPORT TERMINAL SERVICES [4581] IRS NUMBER: 135549268 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 001-03122 FILM NUMBER: 98656778 BUSINESS ADDRESS: STREET 1: TWO PENNSYLVANIA PLZ - 25TH FLR CITY: NEW YORK STATE: NY ZIP: 10121 BUSINESS PHONE: 2128686100 MAIL ADDRESS: STREET 1: TWO PENNSYLVANIA PLZ - 25TH FLR CITY: NEW YORK STATE: NY ZIP: 10121 11-K 1 FORM 11-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 11-K /X/ Annual Report pursuant to Section 15(d) of the Securities and Exchange Act of 1934 for the fiscal year ended December 31, 1997. / / Transition report pursuant to Section 15(d) of the Securities Exchange Act of 1934 for the transition period from to -------- -------- Commission file number: 1-3122 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: Ogden 401(k) B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: Ogden Corporation Two Pennsylvania Plaza New York, New York 10121 Signature Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the Ogden 401(k) Plan) have duly caused this annual report to be signed by the undersigned thereunto duly authorized. OGDEN PROFIT SHARING PLAN ADMINISTRATIVE COMMITTEE By: /s/ Robert M. DiGia ------------------------------- Robert M. DiGia Chairman of the Ogden 401(K) Plan Administrative Committee Date: June 29, 1998 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 11-K /X/ Annual report pursuant to Section 15(d) of the Securities and Exchange Act of 1934 For the fiscal year ended December 31, 1997 / / Transition report pursuant to Section 15(d) of the Securities Exchange Act of 1934 for the transition period from to ------ ------ Commission file number: 1-3122 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: Ogden Projects Profit Sharing Plan 40 Lane Road P.O. Box 2615 Fairfield, NJ 07007-2615 B. Name of the issuer of the securities held pursuant to the plan and the address of its principal executive office: Ogden Corporation Two Pennsylvania Plaza New York, NY 10121 Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the Ogden Projects Profit Sharing Plan) have duly caused this annual report to be signed by the undersigned thereunto duly authorized. OGDEN PROJECTS PROFIT SHARING PLAN ADMINISTRATIVE COMMITTEE By: /s/ Andrea R. Ehrlich ----------------------------- Andrea R. Ehrlich Member of the Ogden Projects Profit Sharing Plan Administrative Committee Date: June 29, 1998 The Ogden 401(k) Plan Financial Statements for the Years Ended December 31, 1997 and 1996, and Independent Auditors' Report THE OGDEN 401(k) PLAN TABLE OF CONTENTS - ------------------------------------------------------------------------------- Page INDEPENDENT AUDITORS' REPORT 1 FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996: Statements of Net Assets Available for Benefits 2 Statements of Changes in Net Assets Available for Benefits 3 Notes to Financial Statements 4-13 SUPPLEMENTAL SCHEDULES FOR THE YEAR ENDED DECEMBER 31, 1997: Item 27a - Schedule of Assets Held for Investment Purposes 14 Item 27d - Schedule of Reportable Transactions 15 INDEPENDENT AUDITORS' REPORT The Ogden 401(k) Plan We have audited the accompanying statements of net assets available for benefits of The Ogden 401(k) Plan (the "Plan") as of December 31, 1997 and 1996, and the related statements of changes in net assets available for 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, such financial statements present fairly, in all material respects, the net assets available for benefits of the Plan at 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 conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules listed in the Table of Contents 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. These schedules are the responsibility of the Plan's management. Such schedules have been subjected to the auditing procedures applied in our audit of the basic 1997 financial statements and, in our opinion, are fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole. June 23, 1998 THE OGDEN 401(k) PLAN STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1997 AND 1996 - --------------------------------------------------------------------------------
1997 1996 ------------ ------------ ASSETS: Investments (Note 3): Interest bearing cash $ 12,661,819 $ 17,682,975 Ogden common stock 11,874,801 10,440,000 Common/collective trust 41,768,882 23,343,753 Registered investment companies 46,720,932 37,177,255 Participant notes receivable 7,357,863 7,127,250 Investment contracts with insurance companies 28,408,372 32,824,977 ------------ ------------ Total investments 148,792,669 128,596,210 ------------ ------------ Receivables: Employer 275,462 266,510 Employee 624,174 562,265 Accrued income 1,221,352 1,372,452 ------------ ------------ Total receivables 2,120,988 2,201,227 ------------ ------------ Total assets 150,913,657 130,797,437 LIABILITIES -- 46,256 ------------ ------------ NET ASSETS AVAILABLE FOR BENEFITS (Note 4) $150,913,657 $130,751,181 ------------ ------------ ------------ ------------
See notes to financial statements. 2 THE OGDEN 401(k) PLAN STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS YEARS ENDED DECEMBER 31, 1997 AND 1996
1997 1996 ------------- ------------- EARNINGS/(LOSSES) ON INVESTMENTS (Note 5): Net investment gain from master trust: Interest and dividends $ -- $ 2,486,140 Net realized and unrealized appreciation of assets -- 2,540,772 Administrative expenses -- (352,262) ------------- ------------- Net investment gain from master trust -- 4,674,650 ------------- ------------- Net investment gain from registered investment companies: Interest and dividends 4,348,601 1,319,134 Net realized and unrealized appreciation of assets 2,401,957 2,209,316 ------------- ------------- Net investment gain from registered investment companies 6,750,558 3,528,450 ------------- ------------- Net investment gain from Ogden common stock: Interest and dividends 606,281 709,593 Net realized and unrealized appreciation (depreciation) of assets 4,394,744 (381,147) ------------- ------------- Net investment gain from Ogden common stock 5,001,025 328,446 Net realized and unrealized appreciation from common/collective trust 8,126,086 2,696,070 Interest on participant notes receivable 523,259 292,539 Interest on investment contracts with insurance companies 2,196,730 1,563,803 Interest on interest-bearing cash (including money markets) 414,218 479,282 ------------- ------------- Total earnings on investments 23,011,876 13,563,240 ------------- ------------- CONTRIBUTIONS (Note 5): Employer 3,205,335 4,322,131 Employee 8,071,526 9,073,036 Rollovers 77,840 96,042 ------------- ------------- Total contributions 11,354,701 13,491,209 DISTRIBUTIONS TO PARTICIPANTS (Note 5) (14,075,292) (16,415,613) EXPENSES (362,131) (132,605) NET TRANSFER (TO) FROM OTHER PLANS (Note 6) 233,322 (17,159,653) ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS AVAILABLE FOR BENEFITS 20,162,476 (6,653,422) NET ASSETS AVAILABLE FOR BENEFITS, BEGINNING OF YEAR (Note 4) 130,751,181 137,404,603 ------------- ------------- NET ASSETS AVAILABLE FOR BENEFITS, END OF YEAR (Note 4) $ 150,913,657 $ 130,751,181 ------------- ------------- ------------- -------------
See notes to financial statements. 3 THE OGDEN 401(k) PLAN NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 1997 AND 1996 - ------------------------------------------------------------------------------- 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting and reporting policies followed in the preparation of the financial statements of The Ogden 401(k) Plan (the "Plan") are in conformity with generally accepted accounting principles. The following is a description of the more significant of these policies: a. Investment Funds - Effective June 3, 1996, the Plan retained the American Express Trust Company to serve as the Trustee (the "Trustee") of the Plan's assets. Prior to this date, the Plan's assets were held in a master trust by the Bank of New York Trust Company (the "Predecessor Trustee") as trustee for the benefit of various Ogden Corporation subsidiary plans. During 1997 and 1996, the Plan included the following funds in which participants could elect to invest their Plan assets: o Equity Fund - Investments in a diversified portfolio of equity securities. o Stock Fund - Investments in common stock of Ogden Corporation. o Fiduciary Capital Management Fixed Income Fund ("Fixed Income Fund") - Investment contracts with insurance companies and banks which provide for a guaranteed return on principal invested over a specified time period. o Merrill Lynch Treasury Fund ("Treasury Fund") - Investments in U.S. Treasury bills and notes generally with maturities of one year or less. o Fidelity Magellan Mutual Fund ("Magellan Fund") - Investments in a mutual fund consisting primarily of common stocks and securities convertible to common stock, under the management of Fidelity Investments. o T. Rowe Price International Stock Fund ("International Fund") - Investments in a mutual fund consisting of stocks of established, non-U.S. companies under the management of T. Rowe Price Associates. o American Express Equity Index Fund II ("AMEX Equity Fund") - Investments in a collective trust consisting of a diversified portfolio of equity securities under the management of American Express Trust Company. o IDS Mutual Fund Balanced Portfolio ("IDS Balanced Fund") - Investments in a mutual fund consisting primarily of common stock, preferred stock and debt securities under the management of IDS Mutual. o Templeton Foreign Fund ("Templeton Fund") - Investments in a mutual fund consisting primarily of established, non-U.S. companies under the management of Templeton Associates. 4 During 1997, the Plan announced the addition of the following funds in which participants could elect to invest their Plan assets: o IDS Growth Fund ("IDS Growth Fund")--Investments in a mutual fund seeking to provide long-term growth of capital primarily in growth, improving, and technology companies. o IDS New Dimensions Fund ("IDS Dimensions Fund")--Investments in a mutual fund which invests primarily in common stocks of U.S. and foreign companies in which economic and technical changes may take place. o U.S. Government Securities Fund II ("Government Securities Fund") --Investments in a collective money market fund, managed to provide maximum current income consistent with conserving capital and maintaining high liquidity. Also, during 1997, the Plan announced that the following funds would no longer be offered as investment options: o Merrill Lynch Treasury Fund o Fidelity Magellan Mutual Fund b. Investment Valuation--Investments in securities listed on national securities exchanges are valued at the closing composite prices published for the last business day of the year. Other investments in securities are stated at fair value as determined by the Trustee. Investments in guaranteed investment contracts included in the Fixed Income Fund are stated at cost plus accrued income. Investments in the Treasury Fund are stated at cost plus accrued income which approximates fair value. c. Investment Transactions and Investment Income--Investment transactions are accounted for on the date purchases or sales are executed. Realized and unrealized gains and losses are determined based on the fair market value of assets at the beginning of the Plan year. Dividend income is accounted for on the ex-dividend date. Interest income is recorded on the accrual basis as earned. d. United States Federal Income Taxes--The Internal Revenue Service has determined and informed the Company by letter dated June 14, 1995 that the Plan and related trust are designed in accordance with the applicable sections of the Internal Revenue Code (the "Code"). The Plan Administrator believes that the plan is currently being operated in compliance with the applicable requirements of the Code. Therefore, no provision for income taxes has been included in the Plan's financial statements. e. Use of Estimates--The preparation of the 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 at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 2. DESCRIPTION OF THE PLAN The following is a brief description of the Plan. Participants should refer to the Plan document for more complete information. 5 a. General Information - Effective June 3, 1996, the Company changed the Plan name from the Ogden Profit Sharing Plan to The Ogden 401(k) Plan. The Plan is an employee savings plan providing for both employer and employee contributions. The Plan was established as the Ogden Food Service Corporation Savings and Security Plan by Ogden Food Service Corporation on January 1, 1982. The Plan was amended and restated effective January 1, 1991 to conform with the Tax Reform Act of 1986. Subsequently, the Company amended and restated the plan again to comply with the requirements of: o The Omnibus Reconciliation Act of 1993 o The Unemployment Compensation Amendment of 1992 o Applicable revenue rulings and notices thereunder o Miscellaneous administrative policies and procedures Other amendments have been made since the Plan's inception to reflect changes in the Plan name and participating Ogden subsidiaries and affiliates adopting the Plan. Participating companies in the Plan include: o Ogden Services Corporation (the Sponsor of the Plan); o Ogden Management Services, Inc.; o All subsidiaries and affiliates of the participating companies which adopt the Plan. b. Administration of the Plan--Administrative and Investment Committees are appointed by the Board of Directors (the "Board") of Ogden Services Corporation (the "Company") and serve as fiduciaries of the Plan. The Administrative Committee has responsibility for administering the Plan and the Investment Committee has responsibility for reviewing the performance of the Plan's investments. Costs related to the administration of the Plan may be paid out of Plan assets if the Company does not pay such expenses directly. c. Participation--Full-time employees of participating companies who are not covered under a collective bargaining agreement with a recognized union and have attained age 21 are eligible to participate in the Plan on the first day of the calendar month following the date he or she has completed twelve months of employment and 1,000 hours of service. d. Contributions--Participants may elect to contribute to the Plan from one to fifteen percent of their annual compensation on a pre-tax basis. For 1997 and 1996, participant pre-tax contributions could not exceed $10,000 and $9,500, respectively. The Company matches 100 percent up to the first 3 percent of a participant's annual compensation for participants who are eligible and who elect to contribute. A participant's elective contributions and Company contributions are invested, at the direction of the participant, in accordance with one of the following options: o 100 percent in one of the Investment Funds; or o in more than one Investment Fund allocated in multiples of five percent. 6 If a participant does not make such an election, he or she is deemed to have elected investment in the Treasury Fund or the Government Securities Fund. e. Loans to Participants--Loans are made to participants at a minimum of $500 and up to the lesser of fifty percent of the vested balance or $50,000 not to exceed the limitations of the Tax Reform Act of 1986. The terms of the loans are a minimum of 6 months and a maximum of 5 years or 60 months (10 year maximum on loans for a primary residence). Participants are prohibited from borrowing funds accumulated in the Stock Fund. The interest rate charged is the Wall Street Journal's prime rate plus 1 percent as of the first business day of each month. f. Vesting--Employees eligible to participate in the Plan on December 31, 1990 remain 100 percent vested in all past and future Company contributions. Employees eligible to participate in the Plan after December 31, 1990 become 100 percent vested in Company contributions after 5 years of service. Participant contributions are immediately 100 percent vested. g. Retirement Dates--A participant's normal retirement date is the participant's sixty-fifth birthday. A participant may elect early retirement at age 55 with 10 years of credited service. h. Amendment or Discontinuance of the Plan--The Company expects to continue the Plan indefinitely, but reserves the right to modify, suspend or terminate the Plan at any time, which includes the right to vary the amount of, or to terminate, the Company's contributions to the Plan. In no event shall assets of the Plan be used for any purpose other than to benefit participants or beneficiaries. In the event of the Plan's termination or discontinuance of contributions thereunder, the interest of each participant to benefits accrued to such date, to the extent then funded, is fully vested and nonforfeitable. i. Form of Benefits--Benefits are paid in one lump sum. 3. INVESTMENTS The following is a summary of the Plan's investments held by the Trustee at December 31, 1997: Investments at fair value as determined by quoted market price: Stock Fund $ 12,088,890 IDS Growth Fund 24,671,817 AMEX Equity Fund 32,952,458 IDS Balanced Fund 11,640,044 Templeton Fund 7,726,933 IDS Dimensions Fund 2,682,138 Government Securities Fund 12,426,592 Investments at contract value as determined by the Trustee-- Fixed Income Fund 37,224,796 Investments at estimated fair value as determined by the Trustee-- Loan Fund 7,379,001 ------------ Total Plan assets held by the Trustee $148,792,669 ------------ ------------
7 The following is a summary of the Plan's cost of investments held by the Trustee at December 31, 1997 and 1996::
1997 1996 ------------ ------------ Stock Fund $ 8,611,836 $ 11,041,804 Magellan Fund -- 18,650,453 IDS Growth Fund 24,132,282 -- AMEX Equity Fund 26,310,007 21,091,088 IDS Balanced Fund 11,659,791 10,215,642 Templeton Fund 8,213,588 6,691,648 IDS Dimensions Fund 2,719,541 -- Government Securities Fund 12,426,592 -- Fixed Income Fund 37,152,812 36,025,144 Treasury Fund -- 14,231,069 Loan Fund 7,379,001 7,127,250 ------------ ------------ Total $138,605,450 $125,074,098 ------------ ------------ ------------ ------------
Loans to participants at December 31, 1997 and 1996, which comprise the Loan Fund, are reported at cost which approximates fair value. The Fixed Income Fund primarily invests in investment contracts providing a guaranteed return on principal invested over a specified time period. The crediting interest rates at December 31, 1997 and 1996 for the various investment contracts ranged from 4.82% to 8.16% and 4.75% to 8.16%, respectively. The average yields of the Fixed Income Fund for the years ended December 31, 1997 and 1996 were 6.36% and 6.44%, respectively. All investment contracts in the Fixed Income Fund are fully benefit-responsive and are recorded at contract value which equals principal plus accrued interest. If the investment contracts were reported at fair value, the investment contracts in the Fixed Income Fund would have approximated $29,051,310 at December 31, 1997 and the Plan's beneficial interest in the Fixed Income Fund would have approximated $35,122,438 at December 31, 1996. 8 4. ALLOCATION OF NET ASSETS AVAILABLE FOR BENEFITS The following is a summary of the allocation by fund of net assets available for benefits at December 31, 1997:
AMEX Fixed Equity Stock Income Loan Templeton Fund Fund Fund Fund Fund ------------ ------------ ------------ ------------ ------------ ASSETS: INVESTMENTS: Interest-bearing cash $ -- $ 214,089 $ -- $ 21,138 $ -- Ogden common stock -- 11,874,801 -- -- -- Common/collective trust 32,952,458 -- 8,816,424 -- -- Registered investment companies -- -- -- -- 7,726,933 Participant notes receivable -- -- -- 7,357,863 -- Investment contracts with insurance companies -- -- 28,408,372 -- -- ------------ ------------ ------------ ------------ ------------ Total investments 32,952,458 12,088,890 37,224,796 7,379,001 7,726,933 ------------ ------------ ------------ ------------ ------------ RECEIVABLES: Employer 63,234 19,341 37,321 -- 27,630 Employee 147,309 39,818 85,163 -- 64,126 Accrued income -- 138,182 1,032,409 50,761 -- ------------ ------------ ------------ ------------ ------------ Total receivables 210,543 197,341 1,154,893 50,761 91,756 ------------ ------------ ------------ ------------ ------------ TOTAL ASSETS 33,163,001 12,286,231 38,379,689 7,429,762 7,818,689 LIABILITIES--Other -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ NET ASSETS AVAILABLE FOR BENEFITS $ 33,163,001 $ 12,286,231 $ 38,379,689 $ 7,429,762 $ 7,818,689 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
IDS Government IDS IDS Balanced Securities Dimensions Growth Fund Fund Fund Fund Total ------------ ------------ ------------ ------------ ------------ ASSETS: INVESTMENTS: Interest-bearing cash $ -- $ 12,426,592 $ -- $ -- $ 12,661,819 Ogden common stock -- -- -- -- 11,874,801 Common/collective trust -- -- -- -- 41,768,882 Registered investment companies 11,640,044 -- 2,682,138 24,671,817 46,720,932 Participant notes receivable -- -- -- -- 7,357,863 Investment contracts with insurance companies -- -- -- -- 28,408,372 ------------ ------------ ------------ ------------ ------------ Total investments 11,640,044 12,426,592 2,682,138 24,671,817 148,792,669 ------------ ------------ ------------ ------------ ------------ RECEIVABLES: Employer 30,822 21,572 7,022 68,520 275,462 Employee 72,133 44,422 17,638 153,565 624,174 Accrued income -- -- -- -- 1,221,352 ------------ ------------ ------------ ------------ ------------ Total receivables 102,955 65,994 24,660 222,085 2,120,988 ------------ ------------ ------------ ------------ ------------ TOTAL ASSETS 11,742,999 12,492,586 2,706,798 24,893,902 150,913,657 LIABILITIES--Other -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ NET ASSETS AVAILABLE FOR BENEFITS $ 11,742,999 $ 12,492,586 $ 2,706,798 $ 24,893,902 $150,913,657 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
9 The following is a summary of the allocation by fund of net assets available for benefits at December 31, 1996:
AMEX Fixed Equity Stock Income Treasury Loan Fund Fund Fund Fund Fund ------------ ------------ ------------ ------------ ------------ ASSETS: INVESTMENTS: Interest-bearing cash $ -- $ 251,739 $ 3,200,167 $ 14,231,069 $ -- Ogden common stock -- 10,440,000 -- -- -- Common/collective trust 23,343,753 -- -- -- -- Registered investment companies -- -- -- -- -- Participant notes receivable -- -- -- -- 7,127,250 Investment contracts with insurance companies -- -- 32,824,977 -- -- ------------ ------------ ------------ ------------ ------------ Total investments 23,343,753 10,691,739 36,025,144 14,231,069 7,127,250 RECEIVABLES: Employer 56,744 18,901 40,433 21,711 -- Employee 120,159 38,849 86,931 44,206 -- Accrued income -- 220,389 1,056,853 58,226 36,984 ------------ ------------ ------------ ------------ ------------ Total receivables 176,903 278,139 1,184,217 124,143 36,984 ------------ ------------ ------------ ------------ ------------ TOTAL ASSETS 23,520,656 10,969,878 37,209,361 14,355,212 7,164,234 LIABILITIES--Other -- 46,033 -- 223 -- ------------ ------------ ------------ ------------ ------------ NET ASSETS AVAILABLE FOR BENEFITS $ 23,520,656 $ 10,923,845 $ 37,209,361 $ 14,354,989 $ 7,164,234 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
IDS Magellan Templeton Balanced Fund Fund Fund Total ------------ ------------ ------------ ------------ ASSETS: INVESTMENTS: Interest-bearing cash $ -- $ -- $ -- $ 17,682,975 Ogden common stock -- -- -- 10,440,000 Common/collective trust -- -- -- 23,343,753 Registered investment companies 19,993,500 6,963,227 10,220,528 37,177,255 Participant notes receivable -- -- -- 7,127,250 Investment contracts with insurance companies -- -- -- 32,824,977 ------------ ------------ ------------ ------------ Total investments 19,993,500 6,963,227 10,220,528 128,596,210 RECEIVABLES: Employer 68,716 27,378 32,627 266,510 Employee 142,301 60,079 69,740 562,265 Accrued income -- -- -- 1,372,452 ------------ ------------ ------------ ------------ Total receivables 211,017 87,457 102,367 2,201,227 ------------ ------------ ------------ ------------ TOTAL ASSETS 20,204,517 7,050,684 10,322,895 130,797,437 LIABILITIES--Other -- -- -- 46,256 ------------ ------------ ------------ ------------ NET ASSETS AVAILABLE FOR BENEFITS $ 20,204,517 $ 7,050,684 $ 10,322,895 $130,751,181 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
10 5. INFORMATION RELATED TO CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS The change in net assets available for benefits, by fund, for the year ended December 31, 1997 is as follows:
AMEX Fixed Equity Stock Income Treasury Loan Magellan Fund Fund Fund Fund Fund Fund ----------- ----------- ----------- ------------ ----------- ------------ Net investment gain from registered investment companies: Interest and dividends $ -- $ -- $ -- $ -- $ -- $ 533,321 Net realized and unrealized appreciation (depreciation) of assets -- -- -- -- -- 1,668,050 ----------- ----------- ----------- ------------ ----------- ------------ Net investment gain from registered investment companies -- -- -- -- -- 2,201,371 ----------- ----------- ----------- ------------ ----------- ------------ Net investment gain from Ogden common stock: Interest and dividends -- 606,281 -- -- -- -- Net realized and unrealized appreciation of assets -- 4,394,744 -- -- -- -- ----------- ----------- ----------- ------------ ----------- ------------ Net investment gain from Ogden common stock -- 5,001,025 -- -- -- -- ----------- ----------- ----------- ------------ ----------- ------------ Net realized and unrealized appreciation from common/collective trust 7,973,209 -- 152,877 -- -- -- Interest on participant notes receivable -- -- -- -- 523,259 -- Interest on investment contracts with insurance companies -- -- 2,196,730 -- -- -- Interest on interest-bearing cash (including money markets) -- 12,403 114,792 287,023 -- -- ----------- ----------- ----------- ------------ ----------- ------------ Total earnings on investments 7,973,209 5,013,428 2,464,399 287,023 523,259 2,201,371 ----------- ----------- ----------- ------------ ----------- ------------ Contributions: Employer 817,808 217,132 474,637 (208,868) -- 388,844 Employee 1,907,949 499,642 1,119,576 211,415 -- 789,209 Rollovers 13,705 6,503 -- 6,918 -- 1,062 ----------- ----------- ----------- ------------ ----------- ------------ Total contributions 2,739,462 723,277 1,594,213 9,465 -- 1,179,115 ----------- ----------- ----------- ------------ ----------- ------------ Distributions to participants (2,127,217) (1,325,619) (4,986,773) (831,695) (903,739) (563,208) Expenses (68,792) (25,114) (138,588) (11,140) -- (17,315) Transfers (to) from other plans -- -- -- -- -- -- Transfers to (from) the fund 1,125,683 (3,023,586) 2,237,077 (13,808,642) 646,008 (23,004,480) ----------- ----------- ----------- ------------ ----------- ------------ Net increase (decrease) in net assets available for benefit 9,642,345 1,362,386 1,170,328 (14,354,989) 265,528 (20,204,517) Net assets available for benefits, beginning of year 23,520,656 10,923,845 37,209,361 14,354,989 7,164,234 20,204,517 ----------- ----------- ----------- ------------ ----------- ------------ Net assets available for benefits, end of year $33,163,001 $12,286,231 $38,379,689 $ -- $ 7,429,762 $ -- ----------- ----------- ----------- ------------ ----------- ------------ ----------- ----------- ----------- ------------ ----------- ------------
IDS Government IDS IDS Templeton Balanced Securities Dimensions Growth Fund Fund Fund Fund Fund Totals ----------- ----------- ----------- ----------- ----------- ------------ Net investment gain from registered investment companies: Interest and dividends $ 847,715 $ 1,687,168 $ 374,988 $ 185,952 $ 719,457 $ 4,348,601 Net realized and unrealized appreciation (depreciation) of assets (335,133) 221,385 -- -- 847,655 2,401,957 ----------- ----------- ----------- ----------- ----------- ------------ Net investment gain from registered investment companies 512,582 1,908,553 374,988 185,952 1,567,112 6,750,558 ----------- ----------- ----------- ----------- ----------- ------------ Net investment gain from Ogden common stock: Interest and dividends -- -- -- -- -- 606,281 Net realized and unrealized appreciation of assets -- -- -- -- -- 4,394,744 ----------- ----------- ----------- ----------- ----------- ------------ Net investment gain from Ogden common stock -- -- -- -- -- 5,001,025 ----------- ----------- ----------- ----------- ----------- ------------ Net realized and unrealized appreciation from common/collective trust -- -- -- -- -- 8,126,086 Interest on participant notes receivable -- -- -- -- -- 523,259 Interest on investment contracts with insurance companies -- -- -- -- -- 2,196,730 Interest on interest-bearing cash (including money markets) -- -- -- -- -- 414,218 ----------- ----------- ----------- ----------- ----------- ------------ Total earnings on investments 512,582 1,908,553 374,988 185,952 1,567,112 23,011,876 ----------- ----------- ----------- ----------- ----------- ------------ Contributions: Employer 381,434 419,088 162,319 38,698 514,243 3,205,335 Employee 898,333 968,245 336,294 96,249 1,244,614 8,071,526 Rollovers 1,477 24,372 11,448 -- 12,355 77,840 ----------- ----------- ----------- ----------- ----------- ------------ Total contributions 1,281,244 1,411,705 510,061 134,947 1,771,212 11,354,701 ----------- ----------- ----------- ----------- ----------- ------------ Distributions to participants (447,117) (913,040) (842,126) (42,811) (1,091,947) (14,075,292) Expenses (18,056) (25,398) (17,873) (3,240) (36,615) (362,131) Transfers (to) from other plans -- -- 233,322 -- -- 233,322 Transfers to (from) the fund (560,648) (961,716) 12,234,214 2,431,950 22,684,140 -- ----------- ----------- ----------- ----------- ----------- ------------ Net increase (decrease) in net assets available for benefit 768,005 1,420,104 12,492,586 2,706,798 24,893,902 20,162,476 Net assets available for benefits, beginning of year 7,050,684 10,322,895 -- -- -- 130,751,181 ----------- ----------- ----------- ----------- ----------- ------------ Net assets available for benefits, end of year $ 7,818,689 $11,742,999 $12,492,586 $ 2,706,798 $24,893,902 $150,913,657 ----------- ----------- ----------- ----------- ----------- ------------ ----------- ----------- ----------- ----------- ----------- ------------
11 The change in net assets available for benefits, by fund, for the year ended December 31, 1996 is as follows:
AMEX Fixed Equity Equity Stock Income Treasury Loan Fund Fund Fund Fund Fund Fund ------------ ----------- ----------- ----------- ----------- ----------- Earnings on investments: Net investment gain from master trusts: Interest and dividends $ 575,890 $ -- $ 261,780 $ 1,189,254 $ 151,729 $ 248,773 Net realized and unrealized appreciation (depreciation) of assets 3,574,458 -- (1,676,220) -- -- -- Administrative expenses (193,251) -- (25,099) (103,748) (10,400) -- ------------ ----------- ----------- ----------- ----------- ----------- Net investment gain (loss) from master trust 3,957,097 -- (1,439,539) 1,085,506 141,329 248,773 ------------ ----------- ----------- ----------- ----------- ----------- Net investment gain from registered investment companies: Interest and dividends -- -- -- -- -- -- Net realized and unrealized appreciation of assets -- -- -- -- -- -- ------------ ----------- ----------- ----------- ----------- ----------- Net investment gain from registered investment companies -- -- -- -- -- -- -------- ----------- ----------- ----------- ----------- ----------- Net investment gain from Ogden common stock: Interest and dividends -- -- 709,593 -- -- -- Net realized and unrealized appreciation (depreciation) of assets -- -- (381,147) -- -- -- ------------ ----------- ----------- ----------- ----------- ----------- Net investment gain from Ogden common stock -- -- 328,446 -- -- -- ------------ ----------- ----------- ----------- ----------- ----------- Net realized and unrealized appreciation from common/collective trust -- 2,696,070 -- -- -- -- Interest on participant notes receivable -- -- -- -- -- 292,539 Interest on investment contracts with insurance companies -- -- -- 1,563,803 -- -- Interest on interest-bearing cash (including money markets) -- -- 20,289 62,880 396,113 -- ------------ ----------- ----------- ----------- ----------- ----------- Total earnings on investments 3,957,097 2,696,070 (1,090,804) 2,712,189 537,442 541,312 ------------ ----------- ----------- ----------- ----------- ----------- Contributions: Employer 561,464 435,247 455,563 1,127,556 392,149 -- Employee 1,120,483 970,156 918,619 2,330,799 739,318 -- Rollovers 29,195 1,892 (4,478) 30,430 3,253 (1,419) ------------ ----------- ----------- ----------- ----------- ----------- Total contributions 1,711,142 1,407,295 1,369,704 3,488,785 1,134,720 (1,419) Distributions to participants (1,134,481) (3,016,408) (1,420,460) (5,403,171) (1,112,320) (740,069) Expenses -- (16,774) (7,500) (69,722) (10,725) -- Transfers to (from) the fund (48,855,746) 24,066,233 (2,565,455) (3,841,129) 8,177,238 176,643 Transfers (to) from other plans -- (1,615,760) (2,868,430) (5,509,458) (1,701,536) (872,766) Net increase (decrease) in net assets available for benefit (44,321,988) 23,520,656 (6,582,945) (8,622,506) 7,024,819 (896,299) Net assets available for benefits, beginning of year 44,321,988 -- 17,506,790 45,831,867 7,330,170 8,060,533 ------------ ----------- ----------- ----------- ----------- ----------- Net assets available for benefits, end of year $ -- $23,520,656 $10,923,845 $37,209,361 $14,354,989 $ 7,164,234 ------------ ----------- ----------- ----------- ----------- ----------- ------------ ----------- ----------- ----------- ----------- -----------
IDS Magellan International Templeton Balanced Fund Fund Fund Fund Totals ------------- ------------- ------------- ------------- ------------- Earnings on investments: Net investment gain from master trusts: Interest and dividends $ 58,640 $ 74 $ -- $ -- $ 2,486,140 Net realized and unrealized appreciation (depreciation) of assets 224,621 417,913 -- -- 2,540,772 Administrative expenses (12,946) (6,818) -- -- (352,262) ------------- ------------- ------------- ------------- ------------- Net investment gain (loss) from master trust 270,315 411,169 -- -- 4,674,650 ------------- ------------- ------------- ------------- ------------- Net investment gain from registered investment companies: Interest and dividends 147,777 -- 284,345 887,012 1,319,134 Net realized and unrealized appreciation of assets 1,739,949 -- 306,795 162,572 2,209,316 ------------- ------------- ------------- ------------- ------------- Net investment gain from registered investment companies 1,887,726 -- 591,140 1,049,584 3,528,450 ------------- ------------- ------------- ------------- ------------- Net investment gain from Ogden common stock: Interest and dividends -- -- -- -- 709,593 Net realized and unrealized appreciation (depreciation) of assets -- -- -- -- (381,147) ------------- ------------- ------------- ------------- ------------- Net investment gain from Ogden common stock -- -- -- -- 328,446 ------------- ------------- ------------- ------------- ------------- Net realized and unrealized appreciation from common/collective trust -- -- -- -- 2,696,070 Interest on participant notes receivable -- -- -- -- 292,539 Interest on investment contracts with insurance companies -- -- -- -- 1,563,803 Interest on interest-bearing cash (including money markets) -- -- -- -- 479,282 ------------- ------------- ------------- ------------- ------------- Total earnings on investments 2,158,041 411,169 591,140 1,049,584 13,563,240 ------------- ------------- ------------- ------------- ------------- Contributions: Employer 742,608 122,424 218,862 266,258 4,322,131 Employee 1,633,438 256,347 506,625 597,251 9,073,036 Rollovers 24,167 3,089 8,849 1,064 96,042 ------------- ------------- ------------- ------------- ------------- Total contributions 2,400,213 381,860 734,336 864,573 13,491,209 ------------- ------------- ------------- ------------- ------------- Distributions to participants (1,947,424) (111,842) (852,366) (677,072) (16,415,613) Expenses (15,602) -- (4,778) (7,504) (132,605) Transfers to (from) the fund 10,631,570 (5,306,817) 6,991,482 10,525,981 -- Transfers (to) from other plans (2,749,906) -- (409,130) (1,432,667) (17,159,653) Net increase (decrease) in net assets available for benefit 10,476,892 (4,625,630) 7,050,684 10,322,895 (6,653,422) Net assets available for benefits, beginning of year 9,727,625 4,625,630 -- -- 137,404,603 ------------- ------------- ------------- ------------- ------------- Net assets available for benefits, end of year $ 20,204,517 $ -- $ 7,050,684 $ 10,322,895 $ 130,751,181 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- -------------
12 6. TRANSFER TO UNICCO SERVICE COMPANY 401(k) PLAN During 1996, the Plan sponsor sold a portion of a subsidiary, Ogden Facility Services, to UNICCO Service Company effective June 28, 1996. As a result of the sale, 1,172 participants in the Plan became employees of UNICCO Service Company. Subsequently, the account balances of these former employees were transferred to the UNICCO Service Company 401(k) Plan. The value of assets transferred to the UNICCO Plan aggregated $18,378,139. ****** 13 THE OGDEN 401(k) PLAN FORM 5500 ITEM 27a SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1997 - --------------------------------------------------------------------------------
Shares/ Market Description of Investments Units Cost Value OGDEN CORPORATION COMMON STOCK INVESTMENTS 421,279 $ 8,397,747 $ 11,874,801 ------------ ------------ GUARANTEED INVESTMENT CONTRACTS: Allstate Life, GA-5336, 7.00%, due 3/31/98 -- 2,057,365 2,057,365 CNA Life Insurance, GP-13034, 7.74%, due 3/31/00 -- 3,721,065 3,721,065 Commonwealth Life, 302ST, 5.67%, various -- 506,164 506,164 Commonwealth Life, 597FR, 6.49%, due 9/30/98 -- 1,243,254 1,243,254 John Hancock Mutual Life, #7332, 4.82%, due 6/30/98 -- 788,527 788,527 Metropolitan Life, #14020, 8.16%, due 6/30/99 -- 6,059,127 6,059,127 New York Life, #002, 7.32%, due 3/31/01 -- 3,561,470 3,561,470 New York Life, #30009, 7.50%, due 9/30/99 -- 5,425,082 5,425,082 Prudential Life, GA-754-212, 5.01%, due 9/30/98 -- 933,221 933,221 Prudential Life, GA-7541-213, 5.59%, due 6/30/98 -- 599,334 599,334 Sun Life Assurance, #0929G, 6.15%, due 6/30/00 -- 2,585,671 2,585,671 Transamerica Life, #51132, 4.88%, due 9/30/98 -- 928,092 928,092 ------------ ------------ Total Investment Contract 28,408,372 28,408,372 ------------ ------------ MUTUAL FUND INVESTMENTS: IDS Growth Fund 776,087 24,132,282 24,671,817 IDS Mutual Fund Balanced Portfolio 847,905 11,659,791 11,640,044 IDS New Dimensions Fund 112,402 2,719,541 2,682,138 Templeton Foreign Fund 776,526 8,213,588 7,726,933 ------------ ------------ Total Mutual Fund Investments 46,725,202 46,720,932 ------------ ------------ SHORT-TERM INVESTMENTS: AMEX Money Market Fund I -- 235,227 235,227 U.S. Government Securities Fund II -- 12,426,592 12,426,592 ------------ ------------ Total Short-Term Investments 12,661,819 12,661,819 ------------ ------------ AMERICAN EXPRESS EQUITY INDEX FUND II 1,273,181 26,310,007 32,952,458 AMERICAN EXPRESS INCOME FUND II 506,866 8,744,440 8,816,424 PARTICIPANT PROMISSORY NOTE -- 7,357,863 7,357,863 ------------ ------------ TOTAL ASSETS HELD FOR INVESTMENT $138,605,450 $148,792,669 ------------ ------------ ------------ ------------
14 THE OGDEN 401(k) PLAN FORM 5500 ITEM 27d SCHEDULE OF REPORTABLE TRANSACTIONS YEAR ENDED DECEMBER 31, 1997 - --------------------------------------------------------------------------------
Purchase Selling Net Gain/ Description of Investments Price Price Cost Loss Fidelity Magellan Mutual Fund $ 2,951,043 $24,611,987 $22,944,543 $ 1,667,444 IDS Growth Fund 28,115,579 4,291,417 3,983,296 308,121 IDS Mutual Fund Balanced Portfolio 5,138,457 3,940,325 3,699,194 241,131 Merrill Lynch Treasury Fund 1,912,049 16,143,117 16,143,117 -- Ogden Corporation Stock 2,703,108 5,690,795 4,745,016 945,779 American Express Income Fund II 16,807,640 8,144,092 8,063,200 80,892 U.S. Government Securities Fund II 16,295,453 3,868,862 3,868,862 -- AMEX Equity Index Fund II 12,035,181 10,397,030 9,068,927 1,328,103 AMEX Money Market Fund I 9,397,782 9,435,432 9,435,432 -- AMEX Money Market Fund II 9,344,874 12,545,041 12,545,041 --
15 Ogden Projects Profit Sharing Plan Financial Statements for the Years Ended December 31, 1997 and 1996, Supplemental Schedules for the Year Ended December 31,1997, and Independent Auditors' Report OGDEN PROJECTS PROFIT SHARING PLAN TABLE OF CONTENTS - ------------------------------------------------------------------------------- Page INDEPENDENT AUDITORS' REPORT 1 FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996: Statements of Net Assets Available for Benefits 2 Statements of Changes in Net Assets Available for Benefits 3 Notes to Financial Statements 4-12 SUPPLEMENTAL SCHEDULES FOR THE YEAR ENDED DECEMBER 31, 1997: Item 27(a) -- Schedule of Assets Held for Investment Purposes 13 Item 27(d) -- Schedule of Reportable Transactions 14 INDEPENDENT AUDITORS' REPORT Ogden Projects Profit Sharing Plan: We have audited the accompanying statements of net assets available for benefits of the Ogden Projects Profit Sharing Plan (the "Plan") as of December 31, 1997 and 1996, and the related statements of changes in net assets available for 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, such financial statements 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 conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules listed in the Table of Contents 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. These schedules are the responsibility of the Plan's management. Such schedules have been subjected to the auditing procedures applied in our audit of the basic 1997 financial statements and, in our opinion, are fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole. May 29, 1998 OGDEN PROJECTS PROFIT SHARING PLAN STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1997 AND 1996 - --------------------------------------------------------------------------------
ASSETS 1997 1996 INVESTMENTS $ 33,431,346 $29,260,805 RECEIVABLES -- Employer contributions 2,172,065 1,340,692 ----------- ----------- NET ASSETS AVAILABLE FOR BENEFITS (Note 4) $35,603,411 $30,601,497 ----------- ----------- ----------- -----------
See notes to financial statements. 2 OGDEN PROJECTS PROFIT SHARING PLAN STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS YEARS ENDED DECEMBER 31, 1997 AND 1996 - --------------------------------------------------------------------------------
1997 1996 EARNINGS (LOSSES) ON INVESTMENTS (Note 5): Interest and dividends $ 2,668,266 $ 834,934 Net appreciation in the fair value of investments 3,099,475 2,700,363 Investment management fees (96,852) (124,323) ------------ ------------ Net investment earnings 5,670,889 3,410,974 ------------ ------------ CONTRIBUTIONS (Note 5): Employer 831,374 1,340,692 Employee 1,540,373 1,477,616 ------------ ------------ Total contributions 2,371,747 2,818,308 ------------ ------------ DISTRIBUTIONS TO PARTICIPANTS (Note 5) (3,057,099) (1,952,483) ------------ ------------ NET TRANSFER FROM (TO) OTHER PLANS 16,377 (7,879) ------------ ------------ NET INCREASE IN NET ASSETS AVAILABLE FOR BENEFITS 5,001,914 4,268,920 NET ASSETS AVAILABLE FOR BENEFITS, BEGINNING OF YEAR (Note 5) 30,601,497 26,332,577 ------------ ------------ NET ASSETS AVAILABLE FOR BENEFITS, END OF YEAR (Note 4) $ 35,603,411 $ 30,601,497 ------------ ------------ ------------ ------------
See notes to financial statements. 3 OGDEN PROJECTS PROFIT SHARING PLAN NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 1997 AND 1996 - ------------------------------------------------------------------------------- 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting and reporting policies followed in the preparation of the financial statements of the Ogden Projects Profit Sharing Plan (the "Plan") are in conformity with generally accepted accounting principles. The following is a description of the more significant of these policies: a. Investment Funds--During 1996, the Plan included the following funds in which participants could elect to invest their Plan assets: o Equity Fund--Investments in a diversified portfolio of equity securities. o Stock Fund--Investments in common stock of Ogden Corporation. o Fixed Income Fund--Investment contracts with insurance companies and banks which provide for a guaranteed return on principal invested over a specified time period. o Merrill Lynch Treasury Fund ("Treasury Fund")--Investments in U.S. Treasury bills and notes generally with maturities of one year or less. o Fidelity Magellan Mutual Fund ("Magellan Fund")--Investments in the Magellan Fund, consisting primarily of common stocks and securities convertible to common stock, under the management of Fidelity Investments. o T. Rowe Price International Stock Fund ("International Fund")-- Investments in the International Fund, consisting of stocks of established, non-U.S. companies, under the management of T. Rowe Price Associates. Effective May 1996 the monies invested in the Fixed Income Fund were invested in the American Express Trust Income Fund II. o American Express Trust Income Fund II ("Amex Fund")--Investments in the Amex Fund, consisting primarily of insurance investment contracts, bank investment contracts, stable value contracts and short-term investments under the management of American Express. Prior to January 1, 1997, the Plan's beneficial interest in the Ogden Corporation Profit Sharing Group Trust (the "Trust") represented its share of the master trust assets held by The Bank of New York Trust Company as trustee (the "Previous Trustee") for the benefit of various Ogden Corporation subsidiary plans (see Note 3). The common stock of Ogden Corporation held as a result of investments in the Stock Fund was held on behalf of the Trust by the Previous Trustee. Shares in group trust funds were determined on the basis of the initial asset contribution to the Trust by each participating plan, adjusted for subsequent contributions, distributions and allocated income and realized and unrealized gains and losses. Allocation of income, realized and 4 unrealized gains and losses, and administrative expenses were determined monthly on the basis of each plan's proportionate share in the Trust assets stated at fair value. Effective January 1, 1997, the Plan was no longer invested in the Trust. The Plan's beneficial interest in the Trust on that date was transferred to T. Rowe Price Trust Company as the new trustee (the "Trustee"). In addition the following funds in which participants could elect to invest their plan assets changed: The Equity Fund was transferred to the T. Rowe Price Equity Income Fund ("Equity Income Fund"), which invests in a diversified portfolio of equity securities; and the Amex fund was transferred to the T. Rowe Price Stable Value Fund ("Stable Value Fund"), which primarily invests in guaranteed investment contracts, bank investment contracts and structured investment contracts. All other investment funds remained in tact. Also, effective January 1, 1997, the T. Rowe Price Balanced Fund ("Balanced Fund"), which invests in equity securities and fixed income securities, was added. The Stable Value Fund primarily invests in investment contracts providing a guaranteed return on principal invested over a specified time period. The credited interest rates at December 31, 1997 for the various investment contracts ranged from 4.77% to 8.41%. The average yields of the Stable Value Fund for the year ended December 31, 1997 was 6.26%. All investment contracts in the Stable Value Found are fully benefit responsive and are recorded at contract value. b. Investment Valuation - Investments in securities listed on national securities exchanges are valued at closing composite prices published for the last business day of the year. Investments in guaranteed investment contracts included in the Stable Value Fund are stated at contract value. Investments in the Treasury Fund are stated at cost plus investment income which approximates fair value. Other investments are stated at fair value as determined by the Trustee. c. Investment Transactions and Investment Income--Investment transactions are accounted for on the date purchases or sales are executed. Realized and unrealized gains and losses are determined based on the fair value of assets at the beginning of the Plan year. Dividend income is accounted for on the ex-dividend date. Interest income is recorded on the accrual basis as earned. d. United States Federal Income Taxes--The Plan is intended to be qualified under Section 401(a) and tax exempt under Section 501(a) of the Internal Revenue Code (the "Code"). The Plan received a favorable determination letter from the Internal Revenue Service dated June 16, 1995. The Plan Administrator believes that the Plan is currently designed and being operated in compliance with the applicable requirements of the Code. Therefore, no provision for income taxes has been included in the Plan's financial statements. e. Distributions to Participants--Benefits are recorded when paid. f. General--The financial statements are prepared in conformity with generally accepted accounting principles. These principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of changes in net assets available for benefits during the reporting period. Actual results could differ from those estimates. 5 2. DESCRIPTION OF THE PLAN The following is a brief description of the Plan. Participants should refer to the Plan document for more complete information. a. General Information--The Plan is an employee savings plan providing for both employer and employee contributions. The Plan includes pre-tax and after-tax savings features which are intended to qualify under Sections 401(k) and 401(a) of the Code, respectively. The Plan is intended to conform with the requirements of the Tax Reform Act of 1986 (TRA) and the Technical and Miscellaneous Revenue Act of 1988 (TAMRA). b. Administration of the Plan--The Administrative Committee is appointed by the Board of Directors (the "Board") of Ogden Corporation ("Ogden") and serves as a fiduciary of the Plan. The Administrative Committee has general responsibility for the administration and interpretation of the Plan. Prior to November 1, 1997, the Ogden Corporate Investment Committee had the authority to appoint investment advisors and to review the performance of the investment portfolio. Effective November 1, 1997, the OPI Investment Committee was established and charged with appointing investment advisors and reviewing the performance of the investment portfolio. Costs related to the administration of the Plan are paid by the participants out of Plan assets. c. Participation--Each employee who was, as of December 31, 1988, a participant in the Plan continued to be a participant if he/she was in the employ of the Company on such date. Each other employee who performs an hour of service after December 31, 1988 becomes a participant on the first day of the month coinciding with or next following the earlier of (i) the last day of a period of 6 months of continuous employment and (ii) the close of (a) a twelve-month period if he/she has at least 1,000 hours of service or (b) a Plan year during which he/she has at least 1,000 hours of service. d. Vesting--Vesting of employer contributions to the Plan is determined based on the period of vesting service by participants commencing on their date of hire to their date of termination of service in accordance with the following schedule:
Percent Years of Vesting Service in the Plan Vested Less than one year of vesting service 0% One but less than two years of vesting service 20 Two but less than three years of vesting service 40 Three but less than four years of vesting service 60 Four but less than five years of vesting service 80 Five or more years of vesting service 100
Participant contributions are immediately 100 percent vested. e. Contributions--Contributions paid by the Company are determined by the Board. The Board's determination may be expressed in terms of a stated percentage of the Company's annual net profit, as a fixed dollar amount or as a percentage of total compensation paid to each participant. The contribution may not exceed the amount deductible by the Company for Federal income tax 6 purposes and may be made only out of its current or accumulated earnings and profits. The allocation of the contributions to individual participants is based on the relationship of compensation paid to each participant to the compensation paid to all participants. Participants may contribute one to ten percent of their annual compensation on a pre-tax and/or after-tax basis. For 1997 and 1996, participant pre-tax contributions could not exceed $9,500 in accordance with IRS Regulations. f. Distribution from the Plan because of Hardship--Withdrawals are permitted if a participant establishes, to the satisfaction of the Administrative Committee, a financial need for funds for which there is no other money available such as (i) to purchase a primary residence, (ii) to pay uninsured medical expenses for the participant or immediate family, (iii) to prevent mortgage foreclosure on, or eviction from his/her primary residence, or (iv) to pay post-secondary educational expenses for the participant, spouse, children or dependents. g. Payments from the Plan's Trust--The value of a participant's interest in the Plan is payable upon retirement, disability, death, or termination of employment, as follows: i) Upon termination of service of a participant on or after his/her retirement date or by reason of his/her death or disability, an amount equal to the value of the participant's account as of the valuation date next following the date of his/her termination of service, whether or not such participant has a vested interest in such account, is paid from the Trust. Participants may elect to receive the distribution valued as of any month after the date of termination of service but not later than the April 1st of the year following the year the participant attains age 70-1/2. ii) Upon the termination of service of any participant which occurs other than on his/her retirement date and for any reason other than death or disability, the terminated participant is paid in a lump sum amount equal to the value, as of the valuation date coincident with or following the date of his/her termination of service, of his/her vested interest, if any, in his/her account. Such payment is made to the participant as soon as practicable after his/her termination of service. Participants may elect to receive the distribution valued as of any month after the date of termination of service but not later than April 1st of the year following the year the participant attains age 70-1/2. Any benefit payable under the Plan pursuant to (i) above is paid as one lump sum payment from the Trust, with a supplemental payment to be made as promptly as possible in respect to any contribution allocated to the participant's account for the Plan year. h. Loans--In accordance with Plan policy, participants can borrow against the vested portion of their account balance. Borrowings are limited to the lesser of $50,000 or 50 percent of the participant's vested balance (not to exceed certain limitations). While such loans do not represent a reduction of the participant's account balance, participants are prohibited from receiving allocations (earnings) based on the loan amounts, although when the loans are repaid, the interest expense incurred by the participant is added to the participant's account balance. The interest rate on such loans is the Trustee's prime lending rate plus one percent. i. Amendment, Suspension and Termination--The Board or the Administrative Committee may amend the Plan at any time. No such amendment, however, may have the effect of diverting to the Company any part of the Plan or of diverting any part of the Plan for any purpose other than for 7 the exclusive benefit of the participants. Likewise, an amendment may not reduce the interest of any participant in the Plan accrued prior to such amendment. The Board or the Administrative Committee may, however, make such amendments to the extent required to conform the Plan to ERISA or to maintain the continued qualified status of the Plan under the Internal Revenue Code. The Company expects to continue the Plan indefinitely, but reserves the right to suspend contributions or to modify or terminate the Plan at any time. Upon termination of the Plan or discontinuance of contributions thereunder, the interest of each participant is fully vested and nonforfeitable. 3. INVESTMENTS Prior to January 1, 1997, the Plan participated in the Trust with other Ogden Corporation subsidiary plans. Effective June 3, 1996 certain Ogden Corporation subsidiary plans withdrew their beneficial interest from the Trust. The following is a summary of the Trust's investments as prepared by the Previous Trustee and the Plan's beneficial interest in such investments at December 31, 1996:
Investments at fair value as determined by quoted market price: Equity Fund $ 13,646,146 Stock Fund 892,236 Magellan Fund 3,602,908 International Fund 3,127,811 Investments at contract value as determined by Trustee: Amex Fund 7,882,191 Investments at cost plus accrued income, which approximates fair value as determined by the Trustee: Treasury Fund 1,445,704 Loan Fund 1,239,476 ------------ Total Trust assets $ 31,836,472 ------------ ------------ Plan's beneficial interest therein (Note 4) $ 29,260,805 ------------ ------------ Plan's beneficial interest percentage therein 91.9 % ------- ------- Trust's net appreciation in fair value of investments $ 5,505,678 ------------ ------------ Plan's beneficial interest therein (Note 5) $ 2,700,363 ------------ ------------ Total Trust interest and dividend income as determined by the Trustee $ 3,393,266 ------------ ------------ Plan's beneficial interest therein (Note 5) $ 834,934 ------------ ------------ *Total investment management fees charged to the Trust $ (494,839) ------------ ------------ Plan's beneficial interest therein (Note 5) $ (124,323) ------------ ------------
8 4. NET ASSETS AVAILABLE FOR BENEFITS BY FUND The following is a summary of the allocation by fund of net assets available for benefits at December 31, 1997 and 1996:
Equity Stable Income Stock Value Treasury Loan Fund Fund Fund Fund Fund INVESTMENTS $15,283,551 $ 1,288,995 $ 6,245,734 $ 1,458,630 $ 1,131,752 RECEIVABLES - Employer contributions 862,853 85,752 305,604 99,461 -- TRANSFERS - Receivables (payables) from (to) other funds 1,527 (1,527) -- -- -- ----------- ----------- ----------- ----------- ----------- NET ASSETS AVAILABLE FOR BENEFITS $16,147,931 $ 1,373,220 $ 6,551,338 $ 1,558,091 $ 1,131,752 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Magellan International Balanced Fund Fund Fund Total INVESTMENTS $ 4,670,162 $ 2,595,024 $ 757,498 $33,431,346 RECEIVABLES - Employer contributions 434,881 325,074 58,440 2,172,065 TRANSFERS - Receivables (payables) from (to) other funds -- -- -- -- ----------- ----------- ----------- ----------- NET ASSETS AVAILABLE FOR BENEFITS $ 5,105,043 $ 2,920,098 $ 815,938 $35,603,411 ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
December 31, 1996:
Equity Stock Amex Treasury Loan Fund Fund Fund Fund Fund INVESTMENTS - Value of interest in master trust $ 12,222,839 $ 892,236 $ 7,016,903 $ 1,158,632 $ 1,239,476 RECEIVABLES - Employer contributions 515,036 45,045 244,783 38,976 -- TRANSFERS - Receivables (payables) from (to) other funds (7,731) (9,632) 19,656 1,091 -- ------------ ------------ ------------ ------------ ------------ NET ASSETS AVAILABLE FOR BENEFITS $ 12,730,144 $ 927,649 $ 7,281,342 $ 1,198,699 $ 1,239,476 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Magellan International Fund Fund Total INVESTMENTS - Value of interest in master trust $ 3,602,908 $ 3,127,811 $ 29,260,805 RECEIVABLES - Employer contributions 264,767 232,085 1,340,692 TRANSFERS - Receivables (payables) from (to) other funds (13,140) 9,756 -- ------------ ------------ ------------ NET ASSETS AVAILABLE FOR BENEFITS $ 3,854,535 $ 3,369,652 $ 30,601,497 ------------ ------------ ------------ ------------ ------------ ------------
9 5. CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS BY FUND The changes in net assets available for benefits, by fund, for the year ended December 31, 1997, were as follows:
Equity Stable Income Stock Value Treasury Loan Fund Fund Fund Fund Fund EARNINGS (LOSSES) ON INVESTMENTS: Interest and dividends $ 1,580,482 $ 44,701 $ 402,787 $ 63,144 $ 95,550 Net appreciation (depreciation) in fair value of investments 2,026,696 420,410 -- -- -- Investment management fees (51,377) (3,289) (15,744) (4,083) -- ------------ ------------ ------------ ------------ ------------ Net investment earnings 3,555,801 461,822 387,043 59,061 95,550 ------------ ------------ ------------ ------------ ------------ CONTRIBUTIONS: Employer 347,817 40,707 60,822 60,485 -- Employee 579,858 38,110 282,460 50,944 -- ------------ ------------ ------------ ------------ ------------ Total contributions 927,675 78,817 343,282 111,429 -- ------------ ------------ ------------ ------------ ------------ DISTRIBUTIONS TO PARTICIPANTS (981,783) (125,281) (1,191,860) (21,230) -- ------------ ------------ ------------ ------------ ------------ TRANSFERS FROM OTHER PLANS 600 -- -- -- 15,777 ------------ ------------ ------------ ------------ ------------ TRANSFERS (TO) FROM OTHER FUNDS (84,506) 30,213 (268,469) 210,132 (219,051) ------------ ------------ ------------ ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS AVAILABLE FOR BENEFITS 3,417,787 445,571 (730,004) 359,392 (107,724) NET ASSETS AVAILABLE FOR BENEFITS, BEGINNING OF YEAR 12,730,144 927,649 7,281,342 1,198,699 1,239,476 ------------ ------------ ------------ ------------ ------------ NET ASSETS AVAILABLE FOR BENEFITS, END OF YEAR $ 16,147,931 $ 1,373,220 $ 6,551,338 $ 1,558,091 $ 1,131,752 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Magellan International Balanced Fund Fund Fund Total EARNINGS (LOSSES) ON INVESTMENTS: Interest and dividends $ 313,190 $ 150,070 $ 18,342 $ 2,668,266 Net appreciation (depreciation) in fair value of investments 682,384 (69,207) 39,192 3,099,475 Investment management fees (14,252) (7,610) (497) (96,852) ------------ ------------ ------------ ------------ Net investment earnings 981,322 73,253 57,037 5,670,889 ------------ ------------ ------------ ------------ CONTRIBUTIONS: Employer 170,114 92,989 58,440 831,374 Employee 321,121 248,984 18,896 1,540,373 ------------ ------------ ------------ ------------ Total contributions 491,235 341,973 77,336 2,371,747 ------------ ------------ ------------ ------------ DISTRIBUTIONS TO PARTICIPANTS (469,240) (267,705) -- (3,057,099) ------------ ------------ ------------ ------------ TRANSFERS FROM OTHER PLANS -- -- -- 16,377 ------------ ------------ ------------ ------------ TRANSFERS (TO) FROM OTHER FUNDS 247,191 (597,075) 681,565 -- ------------ ------------ ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS AVAILABLE FOR BENEFITS 1,250,508 (449,554) 815,938 5,001,914 ------------ ------------ ------------ ------------ NET ASSETS AVAILABLE FOR BENEFITS, BEGINNING OF YEAR 3,854,535 3,369,652 -- 30,601,497 ------------ ------------ ------------ ------------ NET ASSETS AVAILABLE FOR BENEFITS, END OF YEAR $ 5,105,043 $ 2,920,098 $ 815,938 $ 35,603,411 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
10 The changes in net assets available for benefits, by fund, for the year ended December 31, 1996, were as follows:
Fixed Equity Stock Income Amex Treasury Fund Fund Fund Fund Fund EARNINGS (LOSSES) ON INVESTMENTS: Interest and dividends $ 321,054 $ 68,159 $ 202,165 $ 267 $ 59,219 Net appreciation (depreciation) in fair value of investments 1,965,603 (148,406) -- 293,414 -- Investment management fees (84,345) (3,176) (17,009) (6,260) (2,480) ------------ ------------ ------------ ------------ ------------ Net investment gain from master trust 2,202,312 (83,423) 185,156 287,421 56,739 ------------ ------------ ------------ ------------ ------------ CONTRIBUTIONS: Employer 515,036 45,045 -- 244,783 38,976 Employee 456,575 55,211 244,178 138,373 54,215 ------------ ------------ ------------ ------------ ------------ Total contributions 971,611 100,256 244,178 383,156 93,191 ------------ ------------ ------------ ------------ ------------ DISTRIBUTIONS TO PARTICIPANTS (816,137) (178,442) (381,561) (273,014) (18,066) ------------ ------------ ------------ ------------ ------------ TRANSFERS TO OTHER PLANS (3,990) (2,434) -- -- -- ------------ ------------ ------------ ------------ ------------ TRANSFERS (TO) FROM OTHER FUNDS 1,303,730 (225,817) (8,129,017) 6,883,779 (111,967) ------------ ------------ ------------ ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS AVAILABLE FOR BENEFITS 3,657,526 (389,860) (8,081,244) 7,281,342 19,897 ------------ ------------ ------------ ------------ ------------ NET ASSETS AVAILABLE FOR BENEFITS, BEGINNING OF YEAR 9,072,618 1,317,509 8,081,244 -- 1,178,802 ------------ ------------ ------------ ------------ ------------ NET ASSETS AVAILABLE FOR BENEFITS, END OF YEAR $ 12,730,144 $ 927,649 $ -- $ 7,281,342 $ 1,198,699 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Loan Magellan International Fund Fund Fund Total EARNINGS (LOSSES) ON INVESTMENTS: Interest and dividends $ 94,175 $ 49,691 $ 40,204 $ 834,934 Net appreciation (depreciation) in fair value of investments -- 311,052 278,700 2,700,363 Investment management fees -- (7,212) (3,841) (124,323) ------------ ------------ ------------ ------------ Net investment gain from master trust 94,175 353,531 315,063 3,410,974 ------------ ------------ ------------ ------------ CONTRIBUTIONS: Employer -- 264,767 232,085 1,340,692 Employee -- 349,949 179,115 1,477,616 ------------ ------------ ------------ ------------ Total contributions -- 614,716 411,200 2,818,308 ------------ ------------ ------------ ------------ DISTRIBUTIONS TO PARTICIPANTS (12,886) (227,163) (45,214) (1,952,483) ------------ ------------ ------------ ------------ TRANSFERS TO OTHER PLANS -- (1,455) -- (7,879) ------------ ------------ ------------ ------------ TRANSFERS (TO) FROM OTHER FUNDS (5,276) (803,843) 1,088,411 -- ------------ ------------ ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS AVAILABLE FOR BENEFITS 76,013 (64,214) 1,769,460 4,268,920 ------------ ------------ ------------ ------------ NET ASSETS AVAILABLE FOR BENEFITS, BEGINNING OF YEAR 1,163,463 3,918,749 1,600,192 26,332,577 ------------ ------------ ------------ ------------ NET ASSETS AVAILABLE FOR BENEFITS, END OF YEAR $ 1,239,476 $ 3,854,535 $ 3,369,652 $ 30,601,497 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
11 6. SUBSEQUENT EVENT Effective January 1, 1998, participants in the Plan may not elect to, nor continue to, make after-tax contributions to the Plan. Any after-tax contributions made by a participant on or before December 31, 1997 and credited to his or her after-tax contribution account shall remain in such after-tax contribution account and will continue to be adjusted in accordance with the provisions of the Plan document. ****** 12 OGDEN PROJECTS PROFIT SHARING PLAN ITEM 27(a) - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1997 - --------------------------------------------------------------------------------
Description of Number Current Identity of Issue Investment of Shares Cost Value MUTUAL FUNDS: T. Rowe Price Equity Income Fund Mutual Fund 584,493 $13,490,059 $15,283,551 T. Rowe Price Stable Value Fund Mutual Fund 6,245,735 6,245,734 6,245,734 Merrill Lynch Treasury Fund Mutual Fund 1,458,630 1,458,630 1,458,630 Fidelity Magellan Fund Mutual Fund 48,666 4,071,503 4,670,162 T. Rowe Price International Stock Fund Mutual Fund 194,015 2,697,238 2,595,024 T. Rowe Price Balanced Fund Mutual Fund 45,798 719,587 757,498 ----------- ----------- 28,682,751 31,010,599 COMMON STOCKS: *Ogden Corporation Common Stock 45,051 1,024,432 1,288,995 PARTICIPANT LOANS: Participant Loans Loans N/A 1,131,752 1,131,752 ----------- ----------- TOTAL ASSETS HELD FOR INVESTMENTS $30,838,935 $33,431,346 ----------- ----------- ----------- -----------
*Party-in-interest 13 OGDEN PROJECTS PROFIT SHARING PLAN ITEM 27(d) - SCHEDULE OF REPORTABLE TRANSACTIONS YEAR ENDED DECEMBER 31, 1997 - --------------------------------------------------------------------------------
Description Purchase Selling Cost of Net Gain Identity of Issue of Assets Price Price Asset (Loss) SINGLE TRANSACTIONS: Fidelity Magellan Mutual Fund $ 3,583,464 $ -- $ -- $ -- T. Rowe Price Stable Value Fund Mutual Fund 6,867,124 -- -- -- T. Rowe Price International Stock Fund Mutual Fund 3,136,091 -- -- -- T. Rowe Price Equity Income Fund Mutual Fund 12,100,332 -- -- -- T. Rowe Price Equity Income Fund Mutual Fund 1,580,483 -- -- -- SERIES OF TRANSACTIONS INVOLVING SECURITIES OF THE SAME ISSUE: Merrill Lynch Treasury Fund Mutual Fund 1,817,114 -- -- -- Fidelity Magellan Mutual Fund 5,043,746 -- -- -- T. Rowe Price Stable Value Fund Mutual Fund 8,857,645 -- -- -- T. Rowe Price Stable Value Fund Mutual Fund -- 2,367,127 2,367,127 -- T. Rowe Price International Stock Fund Mutual Fund 4,132,226 -- -- -- T. Rowe Price Equity Income Fund Mutual Fund 13,204,137 -- -- -- T. Rowe Price Equity Income Fund Mutual Fund 2,432,245 2,199,042 233,203
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