-----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, SjE/0BQEiB6Z7axTnmCy9Wu6dryaR2V/ZQIU5yssxzGjIwWoTbrWygt91u2RMSAg TuIt2LuBuIbu5hY5mWlzGg== 0000950109-98-002146.txt : 19980327 0000950109-98-002146.hdr.sgml : 19980327 ACCESSION NUMBER: 0000950109-98-002146 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19980326 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ARMSTRONG WORLD INDUSTRIES INC CENTRAL INDEX KEY: 0000007431 STANDARD INDUSTRIAL CLASSIFICATION: PLASTICS PRODUCTS, NEC [3089] IRS NUMBER: 230366390 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 001-02116 FILM NUMBER: 98573825 BUSINESS ADDRESS: STREET 1: P O BOX 3001 STREET 2: 313 W LIBERTY ST CITY: LANCASTER STATE: PA ZIP: 17604 BUSINESS PHONE: 7173970611 MAIL ADDRESS: STREET 1: P.O. BOX 3001 CITY: LANCASTER STATE: PA ZIP: 17604 FORMER COMPANY: FORMER CONFORMED NAME: ARMSTRONG CORK CO DATE OF NAME CHANGE: 19800611 11-K 1 RETIREMENT SAV. PLAN FOR HOURLY EMPLOYEES FORM 11-K SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 1997 ----------------------------------------------- OR [_] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________________ to __________________ Commission file number 1-2116 --------------------------------------------------- RETIREMENT SAVINGS PLAN FOR HOURLY-PAID EMPLOYEES OF ARMSTRONG WORLD INDUSTRIES, INC. (Full title of the Plan) ARMSTRONG WORLD INDUSTRIES, INC. Liberty and Charlotte Streets Lancaster, Pennsylvania 17604 (Name of issuer of the securities held pursuant to the Plan and the address of its principal executive office) Page No. ------- Item 1. Statements of Net Assets 4 ------------------------ September 30, 1997 and 1996 Item 2. Statements of Changes in Plan Equity 5-7 ------------------------------------ (a) Year ended September 30, 1997 (b) Year ended September 30, 1996 (c) Year ended September 30, 1995 Notes to Financial Statements 8-11 - ----------------------------- Item 3. Independent Auditors' Report 12 ---------------------------- Exhibits - -------- 24. Consent of Independent Auditors SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the members of the committee constituting the administrator which administers the plan have duly caused this annual report to be signed by the undersigned hereunto duly authorized. RETIREMENT SAVINGS PLAN FOR HOURLY-PAID EMPLOYEES OF ARMSTRONG WORLD INDUSTRIES, INC. March 23, 1998 By: /s/ George A. Lorch ------------------------------------------ George A. Lorch Chairman of the Retirement Committee RETIREMENT SAVINGS PLAN FOR HOURLY-PAID EMPLOYEES OF ARMSTRONG WORLD INDUSTRIES, INC. Statements of Net Assets September 30, 1997 and 1996
1997 Commingled Specialized Money Fixed Income Armstrong Equity Fund Equity Fund Market Fund Fund Stock Fund ----------- ----------- ----------- ------------ ----------- Assets: Investments in master trust $7,455,996 $11,265,055 $733,693 $45,727,952 $9,711,278 at fair value (note 3) ---------- ----------- -------- ----------- ---------- Total assets $7,455,996 $11,265,055 $733,693 $45,727,952 $9,711,278 ---------- ----------- -------- ------------ ---------- Plan equity $7,455,996 $11,265,055 $733,693 $45,727,952 $9,711,278 ========== =========== ======== =========== ========== "OTC" Asset Asset Mgr. Asset Mgr. Loan Portfolio Fd. Manager Fund Income Fund Growth Fund Portfolio Fund Total ------------- ------------ ----------- ------------ -------------- ----------- Assets: Investments in master trust $2,096,966 $966,047 $73,122 $992,028 $2,295,906 $81,318,043 at fair value (note 3) ---------- -------- ------- -------- ---------- ----------- Total assets $2,096,966 $966,047 $73,122 $992,028 $2,295,906 $81,318,043 ---------- -------- ------- -------- ---------- ----------- Plan equity $2,096,966 $966,047 $73,122 $992,028 $2,295,906 $81,318,043 ========== ======== ======= ======== ========== =========== 1996 Commingled Specialized Money Fixed Income Armstrong Equity Fund Equity Fund Market Fund Fund Stock Fund ----------- ----------- ----------- ------------ ----------- Assets: Investments in master trust $4,883,660 $8,578,636 $416,000 $43,406,405 $9,386,415 at fair value (note 3) ---------- ---------- -------- ----------- ---------- Total assets $4,883,660 $8,578,636 $416,000 $43,406,405 $9,386,415 ----------- ---------- -------- ----------- ---------- Plan equity $4,883,660 $8,578,636 $416,000 $43,406,405 $9,386,415 =========== ========== ======== =========== ========== "OTC" Asset Asset Mgr. Asset Mgr. Loan Portfolio Fd. Manager Fund Income Fund Growth Fund Portfolio Fund Total ------------- ------------ ------------ ------------ -------------- ----------- Assets: Investments in master trust $1,436,335 $699,182 $105,627 $709,448 $1,906,340 $71,528,048 at fair value (note 3) ---------- -------- -------- -------- ---------- ----------- Total assets $1,436,335 $699,182 $105,627 $709,448 $1,906,340 $71,528,048 ---------- -------- -------- -------- ---------- ----------- Plan equity $1,436,335 $699,182 $105,627 $709,448 $1,906,340 $71,528,048 ========== ======== ======== ======== ========== ===========
See accompanying notes to financial statements RETIREMENT SAVINGS PLAN FOR HOURLY-PAID EMPLOYEES OF ARMSTRONG WORLD INDUSTRIES, INC. Statements of Changes in Plan Equity Years ended September 30, 1997, 1996, and 1995
1997 Commingled Specialized Money Fixed Income Armstrong Equity Fund Equity Fund Market Fund Fund Stock Fund ----------- ----------- ----------- ---- ---------- Plan equity at October 1, 1996 $4,883,660 $8,578,636 $416,000 $43,406,405 $9,386,415 ---------- ---------- -------- ----------- ---------- Increases in plan equity: Contributions 396,153 925,416 82,926 3,529,199 552,192 Dividends 161,332 305,919 31,777 -- 244,989 Interest 13,762 29,295 4,814 2,900,183 25,355 Realized gain on investments (note 3) 351,366 260,242 -- -- 550,950 Unrealized appreciation of investments 1,580,784 2,365,599 -- -- 161,770 Loan activity, net (130,980) (126,204) (29,492) (115,061) (48,374) ---------- ---------- -------- ----------- ---------- 2,372,417 3,760,267 90,025 6,314,321 1,486,882 ---------- ---------- -------- ----------- ---------- Decreases in plan equity: Benefits paid (note 4) (374,928) (596,146) (51,747) (4,048,400) (548,329) Transfers (to) from other employee benefit plans of Armstrong World Industries, Inc. (1,542) (75,341) -- (20,335) (16,068) Interfund transfers, net 576,389 (402,361) 279,415 75,961 (597,622) ---------- ----------- -------- ----------- ---------- 199,919 (1,073,848) 227,668 (3,992,774) (1,162,019) ---------- ----------- -------- ----------- ---------- Plan equity at September 30, 1997 $7,455,996 $11,265,055 $733,693 $45,727,952 $9,711,278 ========== =========== ======== =========== ========== "OTC" Asset Asset Mgr. Asset Mgr. Loan Portfolio Fd. Manager Fund Income Fund Growth Fund Portfolio Fund ------------- ------------ ----------- ----------- -------------- Plan equity at October 1, 1996 $1,436,335 $699,182 $105,627 $709,448 $1,906,340 ---------- -------- -------- -------- ---------- Increases in plan equity: Contributions 217,619 62,467 11,615 121,049 -- Dividends 118,866 63,179 7,829 60,481 -- Interest 7,442 1,002 105 2,598 -- Realized gain on investments (note 3) 76,022 9,140 2,061 37,700 -- Unrealized appreciation of investments 305,789 108,924 2,094 127,853 -- Loan activity, net 4,074 (25,281) 460 (21,317) 492,175 ---------- -------- -------- -------- ---------- 729,812 219,431 24,164 328,364 492,175 ---------- -------- -------- -------- ---------- Decreases in plan equity: Benefits paid (note 4) (94,168) (24,466) (1,587) (49,821) -- Transfers (to) from other employee benefit plans of Armstrong World Industries, Inc. -- (12,062) -- (10,314) (102,609) Interfund transfers, net 24,987 83,962 (55,082) 14,351 -- ---------- -------- ------- -------- ---------- (69,181) 47,434 (56,669) (45,784) (102,609) ---------- -------- ------- -------- ---------- Plan equity at September 30, 1997 $2,096,966 $966,047 $73,122 $992,028 $2,295,906 ========== ======== ======= ======== ========== Total ----- Plan equity at October 1, 1996 $71,528,048 ----------- Increases in plan equity: Contributions 5,898,636 Dividends 994,372 Interest 2,984,556 Realized gain on investments (note 3) 1,287,481 Unrealized appreciation of investments 4,652,813 Loan activity, net -- ----------- 15,817,858 ----------- Decreases in plan equity: Benefits paid (note 4) (5,789,592) Transfers (to) from other employee benefit plans of Armstrong World Industries, Inc. (238,271) Interfund transfers, net -- ----------- (6,027,863) ----------- Plan equity at September 30, 1997 $81,318,043 ===========
See accompanying notes to financial statements. (Continued) RETIREMENT SAVINGS PLAN FOR HOURLY-PAID EMPLOYEES OF ARMSTRONG WORLD INDUSTRIES, INC. Statements of Changes in Plan Equity, Continued
1996 Commingled Specialized Money Fixed Income Armstrong Equity Fund Equity Fund Market Fund Fund Stock Fund ----------- ----------- ----------- ---- ---------- Plan equity at October 1, 1995 $5,767,464 $11,315,817 $540,741 $52,340,946 $10,507,047 ---------- ----------- -------- ----------- ----------- Increases in plan equity: Contributions 391,706 1,366,042 121,611 4,511,659 651,984 Dividends 175,391 2,450,944 31,527 -- 284,330 Interest 11,647 27,737 2,993 3,439,151 27,919 Realized gain on investments (note 3) 1,054,113 509,001 -- -- 1,338,682 Loan activity, net (43,609) (114,351) (24,188) (54,773) 40,571 ---------- ----------- -------- ----------- ----------- 1,589,248 4,239,373 131,943 7,896,037 2,343,486 ---------- ----------- -------- ----------- ----------- Decreases in plan equity: Unrealized appreciation (depreciation) of investments (105,009) (2,583,323) -- -- (69,393) Benefits paid (note 4) (746,345) (847,736) (114,511) (4,314,524) (681,467) Transfers (to) from other employee benefit plans of Armstrong World Industries, Inc. (1,847,282) (3,236,368) (120,751) (11,735,341) (2,512,660) Interfund transfers, net 225,584 (309,127) (21,422) (780,713) (200,598) ---------- ----------- -------- ----------- ----------- (2,473,052) (6,976,554) (256,684) (16,830,578) (3,464,118) ---------- ----------- -------- ----------- ----------- Plan equity at September 30, 1996 $4,883,660 $8,578,636 $416,000 $43,406,405 $9,386,415 ========== ========== ======== =========== ========== "OTC" Asset Asset Mgr. Asset Mgr. Loan Portfolio Fd. Manager Fund Income Fund Growth Fund Portfolio Fund ------------- ------------ ----------- ----------- -------------- Plan equity at October 1, 1995 $ 657,654 $850,760 $103,847 $733,731 $2,381,480 ---------- -------- -------- -------- ---------- Increases in plan equity: Contributions 174,556 91,334 12,725 123,321 -- Dividends 156,848 33,031 5,802 11,678 -- Interest 4,912 2,722 112 1,989 -- Realized gain on investments (note 3) 53,313 33,020 934 50,214 -- Loan activity, net 3,277 427 (717) (2,282) 195,645 ---------- -------- -------- -------- ---------- 392,906 160,534 18,856 184,920 195,645 ---------- -------- -------- -------- ---------- Decreases in plan equity: Unrealized appreciation (depreciation) of investments (6,112) 27,374 688 44,495 -- Benefits paid (note 4) (47,221) (96,915) (21,390) (35,812) -- Transfers (to) from other employee benefit plans of Armstrong World Industries, Inc. (433,448) (342,700) (10,568) (317,283) (670,785) Interfund transfers, net 872,556 100,129 14,194 99,397 -- ---------- -------- -------- -------- ---------- 385,775 (312,112) (17,076) (209,203) (670,785) ---------- -------- -------- -------- ---------- Plan equity at September 30, 1996 $1,436,335 $699,182 $105,627 $709,448 $1,906,340 ========== ======== ======== ======== ========== Total ----- Plan equity at October 1, 1995 $85,199,487 ----------- Increases in plan equity: Contributions 7,444,938 Dividends 3,149,551 Interest 3,519,182 Realized gain on investments (note 3) 3,039,277 Loan activity, net -- ----------- 17,152,948 ----------- Decreases in plan equity: Unrealized appreciation (depreciation) of investments (2,691,280) Benefits paid (note 4) (6,905,921) Transfers (to) from other employee benefit plans of Armstrong World Industries, Inc. (21,227,186) Interfund transfers, net -- ----------- (30,824,387) ----------- Plan equity at September 30, 1996 $71,528,048 ===========
See accompanying notes to financial statements (Continued) RETIREMENT SAVINGS PLAN FOR HOURLY-PAID EMPLOYEES OF ARMSTRONG WORLD INDUSTRIES, INC. Statements of Changes in Plan Equity, Continued
1995 Commingled Specialized Money Fixed Income Armstrong Equity Fund Equity Fund Market Fund Fund Stock Fund ----------- ----------- ----------- ---- ---------- Plan equity at October 1, 1994 $4,339,507 $8,048,324 $388,854 $46,899,355 $7,897,890 ---------- ---------- -------- ----------- ---------- Increases in plan equity: Contributions 397,587 1,247,900 127,916 4,594,075 672,227 Dividends 129,522 40,507 31,863 -- 253,220 Interest 8,584 21,711 2,991 3,359,315 22,584 Realized gain (loss) on investments (note 3) 106,949 301,571 -- -- 215,259 Unrealized appreciation of investments 1,056,790 2,752,180 -- -- 2,087,260 Loan activity, net (70,980) (114,131) (16,042) (296,146) (1,984) ---------- ---------- -------- ----------- ---------- 1,628,452 4,249,738 146,728 7,657,244 3,248,566 ---------- ---------- -------- ----------- ---------- Decreases in plan equity: Benefits paid (note 4) (231,803) (365,203) (25,866) (3,342,132) (302,964) Transfers (to) from other employee benefit plans of Armstrong World Industries, Inc. (9,970) (34,962) (1,150) (43,507) (6,126) Interfund transfers, net 41,278 (582,080) 32,175 1,169,986 (330,319) ---------- ---------- -------- ----------- ---------- (200,495) (982,245) 5,159 (2,215,653) (639,409) ---------- ---------- -------- ----------- ---------- Plan equity at September 30, 1995 $5,767,464 $11,315,817 $540,741 $52,340,946 $10,507,047 ========== =========== ======== =========== =========== "OTC" Asset Asset Mgr. Asset Mgr. Loan Portfolio Fd. Manager Fund Income Fund Growth Fund Portfolio Fund ------------- ------------ ----------- ----------- -------------- Plan equity at October 1, 1994 $451,130 $665,191 $79,890 $813,150 $1,899,989 -------- -------- ------- -------- ---------- Increases in plan equity: Contributions 95,414 119,337 20,887 150,368 -- Dividends 16,793 25,002 3,593 22,899 -- Interest 2,443 3,230 701 2,771 -- Realized gain (loss) on investments (note 3) 31,229 (6,672) (215) (17,965) -- Unrealized appreciation of investments 132,867 52,303 6,409 62,284 -- Loan activity, net 2,818 (7,583) (5) 3,381 500,672 -------- -------- ------- -------- ---------- 281,564 185,617 31,370 223,738 500,672 -------- -------- ------- -------- ---------- Decreases in plan equity: Benefits paid (note 4) (7,317) (20,156) -- (23,665) -- Transfers (to) from other employee benefit plans of Armstrong World Industries, Inc. (3,480) -- -- -- (19,181) Interfund transfers, net (64,243) 20,108 (7,413) (279,492) -- -------- -------- ------- -------- ---------- (75,040) (48) (7,413) (303,157) (19,181) -------- -------- ------- -------- ---------- Plan equity at September 30, 1995 $657,654 $850,760 $103,847 $733,731 $2,381,480 ======== ======== ======== ======== ========== Total ----- Plan equity at October 1, 1994 $71,483,280 ----------- Increases in plan equity: Contributions 7,425,711 Dividends 523,399 Interest 3,424,330 Realized gain (loss) on investments (note 3) 630,156 Unrealized appreciation of investments 6,150,093 Loan activity, net -- ----------- 18,153,689 ----------- Decreases in plan equity: Benefits paid (note 4) (4,319,106) Transfers (to) from other employee benefit plans of Armstrong World Industries, Inc. (118,376) Interfund transfers, net -- ----------- (4,437,482) ----------- Plan equity at September 30, 1995 $85,199,487 ===========
See accompanying notes to financial statements. RETIREMENT SAVINGS PLAN FOR HOURLY-PAID EMPLOYEES OF ARMSTRONG WORLD INDUSTRIES, INC. Notes to Financial Statements (1) Summary of Significant Accounting Policies (a) Basis of Presentation The accompanying financial statements have been prepared on the accrual basis. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from estimates recorded. (b) Investments in Master Trust The fair value of the commingled equity, specialized equity, over-the- counter portfolio, and Asset Manager funds is based on the underlying market value of the investments. The money market fund is stated at cost which approximates fair value. The fixed income fund is comprised of guaranteed interest rate contracts which are fully benefit responsive; and therefore are reflected at contract value plus credited interest in the financial statements. The value of the Armstrong stock fund is based on quoted market price. The value of the loan portfolio fund represents the unpaid principal of employee loans. Securities transactions are recognized on the settlement date (the date on which payment for a buy or sell order is made or received), since adjustment to a trade-date basis would not be material. Dividend income is recorded on the ex-dividend date. Realized gains and losses on investments are determined by the average cost method. (c) Expenses All legal, accounting and administrative expenses associated with Plan operations are paid by the Company. (2) Plan Description Armstrong World Industries, Inc. (the Company) has adopted the Retirement Savings Plan for Hourly-Paid Employees of Armstrong World Industries, Inc. (the Plan). The Plan is a defined contribution plan established for the purpose of providing to eligible hourly-paid employees a means for long- term savings intended for the accumulation of retirement income in addition to that provided under other retirement plans maintained for the benefit of employees. Participants may elect to make contributions to the Plan in each of the following methods: 1. Up to 15% of their before-tax compensation, as deferred compensation as permitted under Section 401(k) of the Internal Revenue Code. 2. Up to 10% of their after-tax compensation. Separate accounts are maintained for contributions made by or on behalf of a participant. The accounts in each fund reflect the participants' contributions together with dividends, interest, other income, and realized and unrealized gains and losses allocated thereon. Participants have an immediate 100 percent vested interest with respect to their contributions and are fully vested with regard to any previously made matching company contributions. RETIREMENT SAVINGS PLAN FOR HOURLY-PAID EMPLOYEES OF ARMSTRONG WORLD INDUSTRIES, INC. Notes to Financial Statements, (Continued) (3) Investments in Master Trust Assets are held in a Master Trust administered by Fidelity Management Trust Co., as Trustee, and are segregated into nine investment options: a commingled equity mutual fund (Fidelity U.S. Equity Index Portfolio), a specialized equity mutual fund (Fidelity Magellan), a money market mutual fund (Fidelity Return Money Market Portfolio), three Asset Manager mutual funds, an over-the-counter mutual fund (OTC Portfolio Fund), a fixed income fund, and an Armstrong stock fund. The Plan utilizes the Trustee and associated investment managers to direct investment activity. The Plan participates in all nine investment alternatives. The following is a description of the investment funds to which Plan participants can elect to allocate their contributions. 1. Commingled Equity Fund - This fund is principally a portfolio of common stocks constructed and maintained with the objective of providing investment results which approximate the overall performance of the common stocks included in the Standard & Poor's Composite Index of 500 stocks. At September 30, 1997, there were 410 active participants in this investment fund. 2. Specialized Equity Fund - This fund invests in common stocks of companies having substantial growth prospects as determined by independent investment managers. At September 30, 1997, there were 675 active participants in this investment fund. 3. Money Market Fund - This fund invests in short-term (less than one year maturity) fixed income instruments such as U.S. Treasury Bills, bank certificates of deposit, and high grade commercial paper. At September 30, 1997, there were 87 active participants in this investment fund. 4. Fixed Income Fund - Contributions to this fund are invested in the general accounts of insurance companies and are credited at contracted interest rates. At September 30, 1997, the interest rates ranged between 5.53% and 8.26%. Invested principal and accumulated interest amounts are guaranteed against loss by the insurance company. At September 30, 1997, there were 1,919 active participants in this investment fund. 5. Armstrong Stock Fund - Amounts invested in this fund, along with dividend earnings thereon, are invested in Armstrong common stock. At September 30, 1997, there were 1,137 active participants in this investment fund. Common stock shares held by the fund at September 30, 1997 and 1996 were 144,808 and150,484, respectively. 6. OTC Portfolio Fund - This fund invests in securities traded in the over-the-counter securities market with the objective of maximizing capital appreciation. Over-the-counter securities include common and preferred stocks, securities convertible into common stock, warrants, and debt instruments. At September 30, 1997, there were 195 active participants in this investment fund. 7. Asset Manager Fund - An asset allocation fund which invests in a portfolio of stocks, bonds, and short-term instruments. The fund has a balanced investment strategy with a goal of high total return with reduced risk over the long term. At September 30, 1997, there were 91 active participants in this investment fund. 8. Asset Manager Income Fund - An asset allocation fund which invests in a diversified portfolio of stocks, bonds, and short-term instruments. The fund has a conservative investment strategy focusing on bonds and short-term instruments to achieve a high level of current income and capital preservation. At September 30, 1997, there were 19 active participants in this investment fund. 9. Asset Manager Growth Fund - An asset allocation fund invested in a diversified mix of stocks, bonds, and short-term instruments. The fund's investment strategy is an aggressive one emphasizing stocks with the goal of maximum total return over the long term. At September 30, 1997, there were 127 active participants in this investment fund. RETIREMENT SAVINGS PLAN FOR HOURLY-PAID EMPLOYEES OF ARMSTRONG WORLD INDUSTRIES, INC. Notes to Financial Statements, (Continued) The Loan Portfolio Fund represents the unpaid principal balances of loans made by Plan participants in accordance with established loan provision guidelines. At September 30, 1997, there were 453 loans outstanding. The following table presents the cost and fair values of the investments in securities of the Master Trust at September 30, 1997 and 1996:
September 30, 1997 September 30, 1996 ------------------ ------------------ Investment Cost Fair Value Cost Fair Value ---------- ---- ---------- ---- ---------- Commingled equity $4,055,518 $7,455,996 $3,063,966 $4,883,660 Specialized equity 8,303,434 11,265,055 7,982,614 8,578,636 Money market 733,693 733,693 416,000 416,000 Fixed income 45,727,952 45,727,952 43,406,405 43,406,405 Armstrong stock 6,051,944 9,711,278 5,888,851 9,386,415 OTC portfolio 1,677,453 2,096,966 1,322,611 1,436,335 Asset manager 808,434 966,047 650,493 699,182 Asset manager income 66,872 73,122 101,471 105,627 Asset manager growth 773,850 992,028 619,123 709,448 Loan portfolio 2,295,906 2,295,906 1,906,340 1,906,340 ----------- ----------- ----------- ----------- $70,495,056 $81,318,043 $65,357,874 $71,528,048 =========== =========== =========== ===========
The amounts of realized gain (loss) on investments in securities of the Master Trust for the years ended September 30, 1997, 1996, and 1995 are presented below:
Aggregate Aggregate Realized --------- --------- -------- 1997 Proceeds Cost Gain (Loss) ---- -------- ---- ----------- Commingled equity $1,225,383 $874,017 $351,366 Specialized equity 3,517,283 3,257,041 260,242 Armstrong stock 1,497,284 946,334 550,950 OTC portfolio 3,026,966 2,950,944 76,022 Asset manager 116,680 107,540 9,140 Asset manager income 80,693 78,632 2,061 Asset manager growth 253,077 215,377 37,700 ---------- ---------- ---------- $9,717,366 $8,429,885 $1,287,481 ========== ========== ========== 1996 ---- Commingled equity $2,844,308 $1,790,195 $1,054,113 Specialized equity 8,058,491 7,549,490 509,001 Armstrong stock 3,660,766 2,322,084 1,338,682 OTC portfolio 1,393,457 1,340,144 53,313 Asset manager 514,737 481,717 33,020 Asset manager income 54,345 53,411 934 Asset manager growth 453,629 403,415 50,214 ----------- ----------- ---------- $16,979,733 $13,940,456 $3,039,277 =========== =========== ==========
RETIREMENT SAVINGS PLAN FOR HOURLY-PAID EMPLOYEES OF ARMSTRONG WORLD INDUSTRIES, INC. Notes to Financial Statements, (Continued) 1995 Aggregate Aggregate Realized ---- --------- --------- -------- Proceeds Cost Gain (Loss) -------- ---- ----------- Commingled equity $472,019 $365,070 $106,949 Specialized equity 5,448,317 5,146,746 301,571 Armstrong stock 826,591 611,332 215,259 OTC portfolio 246,546 215,317 31,229 Asset manager 176,640 183,312 (6,672) Asset manager income 24,947 25,162 (215) Asset manager growth 391,525 409,490 (17,965) ---------- ---------- -------- $7,586,585 $6,956,429 $630,156 ========== ========== ========
(4) Benefits -------- Under terms of the Plan, a participant (or a beneficiary) is eligible for benefits upon retirement, termination of employment, or death before retirement. Disbursement of the total amount credited to a participant's account is payable (i) in a lump sum or (ii) in the case of retirement, in such other manner as requested by the participant and approved by the Plan Administrator. In addition, a participant may elect to withdraw all or any part of his account attributable to his contributions. If the amount of a withdrawal exceeds the amount of contributions made by the participant and not previously withdrawn, the participant shall be ineligible to make contributions for a specified period, except that a participant may elect to withdraw all or any portion of his account attributable to tax deductible contributions. Under the rules of the Plan, the participant may borrow up to 90 percent of his account, other than amounts attributable to tax deductible contributions or amounts invested in the Armstrong Stock Fund, with the approval of the Plan Administrator. The amount of the loan is transferred to a Loan Reserve pledged as security for the loan and is evidenced by a promissory note payable to the Plan. Interest rates are determined periodically by the Retirement Savings Plan Committee in accordance with prevailing interest rates. The loans are reflected in the Loan Portfolio investment fund. Loan repayments are made by payroll deductions or in a manner agreed to by the employee and the Plan Administrator. (5) Obligation for Benefits All the funds of the Plan are held by investing institutions appointed by the Company under a trust agreement or investment contract. Benefits under the Plan are payable only out of these funds. The Company has no legal obligation to make any direct payment of benefits accrued under the Plan. Except as may be provided in an investment contract, neither the Company nor any investing institution guarantees the funds of the Plan against any loss or depreciation or guarantees the payment of any benefit hereunder. Although the Company has not expressed any intent to terminate the Plan, it may do so at any time. In case of termination or partial termination, the total amount in each employee's account will be distributed as the Plan Administrator directs. (6) Federal Income Taxes By a letter dated February 13, 1996, the Internal Revenue Service has determined and informed the Company that the Plan qualifies under the applicable provisions of the Internal Revenue Code and is therefore exempt from federal income taxes. Independent Auditors' Report ---------------------------- The Retirement Committee Armstrong World Industries, Inc.: We have audited the accompanying statements of net assets of the Retirement Savings Plan for Hourly-Paid Employees of Armstrong World Industries, Inc. as of September 30, 1997 and 1996 and the related statements of changes in plan equity for each of the years in the three-year period ended September 30, 1997. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Retirement Savings Plan for Hourly-Paid Employees of Armstrong World Industries, Inc. as of September 30, 1997 and 1996 and the changes in its plan equity for each of the years in the three-year period ended September 30, 1997, 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 statements of net assets and the statements of changes in plan equity is presented for purposes of additional analysis rather than to present the net assets 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, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. KPMG PEAT MARWICK LLP Philadelphia, Pennsylvania March 23, 1998 EXHIBIT INDEX 24 Consent of Independent Auditors EX-24 2 CONSENT OF INDEPENDENT AUDITORS Consent of Independent Auditors ------------------------------- The Retirement Committee Armstrong World Industries, Inc.: We consent to incorporation by reference in Registration Statement No. 33-18997 on Form S-8 of Armstrong World Industries, Inc. of our report dated March 23, 1998, relating to the statements of net assets of the Retirement Savings Plan for Hourly-Paid Employees of Armstrong World Industries, Inc. as of September 30, 1997 and 1996 and the related statements of changes in plan equity for each of the years in the three-year period ended September 30, 1997, which report is included herein. KPMG PEAT MARWICK LLP Philadelphia, Pennsylvania March 23, 1998 -----END PRIVACY-ENHANCED MESSAGE-----