-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, t1umytYgSqtJDHUmYXPtRhSo7DE1tEcaOdiqYYAlxDMn7vyoRSrTJJEbZTmkmRE1 Izx9EzpFVxkYZgbvljF7Iw== 0000950130-95-000806.txt : 19950428 0000950130-95-000806.hdr.sgml : 19950428 ACCESSION NUMBER: 0000950130-95-000806 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19941231 FILED AS OF DATE: 19950427 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PHILIP MORRIS COMPANIES INC CENTRAL INDEX KEY: 0000764180 STANDARD INDUSTRIAL CLASSIFICATION: CIGARETTES [2111] IRS NUMBER: 133260245 STATE OF INCORPORATION: VA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08940 FILM NUMBER: 95531885 BUSINESS ADDRESS: STREET 1: 120 PARK AVE CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 212-880-3870 MAIL ADDRESS: STREET 1: 120 PARK AVE CITY: NEW YORK STATE: NY ZIP: 10017 11-K 1 FORM 11-K =============================================================================== SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------- FORM 11-K (Mark One) ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE /x/ SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED] For the fiscal year ended December 31, 1994 OR TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE / / SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] For the transition period from to Commission file number 1-8940 -------------------------- Philip Morris Incorporated Deferred Profit-Sharing Plan for Craft Employees (Full title of the plan) PHILIP MORRIS COMPANIES INC. 120 Park Avenue New York, New York 10017 (Name of issuer of the securities held pursuant to the plan and address of its principal executive office.) =============================================================================== PHILIP MORRIS INCORPORATED DEFERRED PROFIT-SHARING PLAN FOR CRAFT EMPLOYEES ANNUAL REPORT ON FORM 11-K FOR THE FISCAL YEAR ENDED DECEMBER 31, 1994 TABLE OF CONTENTS
PAGE(S) ------- REPORT OF INDEPENDENT ACCOUNTANTS................................ 3 FINANCIAL STATEMENTS: Statements of Financial Condition as of December 31, 1994 and 1993................................................ 4-5 Statements of Income and Changes in Plan Equity for the years ended December 31, 1994, 1993 and 1992............. 6-8 Notes to Financial Statements.................................. 9-19 SIGNATURES....................................................... 20 SCHEDULES: Schedule I - Investments as of December 31, 1994............... S-1-8 Other schedules are omitted because the information required is contained in the financial statements. EXHIBITS: 23. Consent of Independent Accountants.
-2- REPORT OF INDEPENDENT ACCOUNTANTS To: The Corporate Employee Plans Investment Committee of Philip Morris Companies Inc., the Corporate Employee Benefit Committee of Philip Morris Companies Inc., the Philip Morris Management Committee for Employee Benefits, the Administrator and all Participants as a group (but not individually) of the Philip Morris Incorporated Deferred Profit-Sharing Plan for Craft Employees: We have audited the accompanying statements of financial condition of the Philip Morris Incorporated Deferred Profit-Sharing Plan for Craft Employees (the "Plan") as of December 31, 1994 and 1993, and the related statements of income and changes in plan equity for each of the three years in the period ended December 31, 1994 and the schedule of investments as of December 31, 1994. These financial statements and the financial statement schedule are the responsibility of the fiduciaries of the Plan appointed by Philip Morris Companies Inc. (or its delegate). Our responsibility is to express an opinion on these financial statements and the financial statement schedule 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 Plan as of December 31, 1994 and 1993, and the income and changes in plan equity for each of the three years in the period ended December 31, 1994, in conformity with generally accepted accounting principles. In addition, in our opinion, the financial statement schedule referred to above, when considered in relation to the basic financial statements taken as a whole, presents fairly, in all material respects, the information required to be included therein. COOPERS & LYBRAND L.L.P. New York, New York March 20, 1995 -3- PHILIP MORRIS INCORPORATED DEFERRED PROFIT-SHARING PLAN FOR CRAFT EMPLOYEES STATEMENT OF FINANCIAL CONDITION AS OF DECEMBER 31, 1994 (IN THOUSANDS OF DOLLARS) -----
U.S. EQUITY INTEREST GOVERNMENT PARTICIPANTS' INDEX INCOME OBLIGATIONS PHILIP MORRIS LOAN FUND FUND FUND STOCK FUND ACCOUNT TOTAL -------- --------- ----------- ------------- -------------- -------- ASSETS: Allocated share of Trust net assets $38,142 $70,749 $3,915 $52,328 $4,578 $169,712 Employer contributions receivable 2,054 3,853 1,085 3,281 10,273 Employee contributions receivable 64 120 4 105 293 Interfund receivables (payables) (161) (437) 598 - Participants' loan repayments receivables (payables) 27 44 15 38 (124) - ------- ------- ------ ------- ------ -------- Total assets 40,126 74,329 5,019 56,350 4,454 180,278 ------- ------- ------ ------- ------ -------- LIABILITIES: Distributions and withdrawals payable 34 184 7 225 Undistributed participants' loans 64 10 40 (114) - ------- ------- ------ ------- ------ -------- Total liabilities 98 194 - 47 (114) 225 ------- ------- ------ ------- ------ -------- Plan equity $40,028 $74,135 $5,019 $56,303 $4,568 $180,053 ======= ======= ====== ======= ====== ========
The accompanying notes are an integral part of these financial statements. -4- PHILIP MORRIS INCORPORATED DEFERRED PROFIT-SHARING PLAN FOR CRAFT EMPLOYEES STATEMENT OF FINANCIAL CONDITION AS OF DECEMBER 31, 1993 (IN THOUSANDS OF DOLLARS) -----
U.S. EQUITY INTEREST GOVERNMENT PARTICIPANTS' INDEX INCOME OBLIGATIONS PHILIP MORRIS LOAN FUND FUND FUND STOCK FUND ACCOUNT TOTAL -------- --------- ----------- ------------- -------------- -------- ASSETS: Allocated share of Trust net assets $37,568 $64,004 $3,146 $48,803 $4,253 $157,774 Employer contributions receivable 2,135 3,659 1,204 3,227 10,225 Employee contributions receivable 49 87 5 85 226 Interfund receivables (payables) (36) 917 (74) (807) - Participants' loan repayments receivables (payables) 28 50 15 42 (135) - ------- ------- ------ ------- ------ -------- Total assets 39,744 68,717 4,296 51,350 4,118 168,225 ------- ------- ------ ------- ------ -------- LIABILITIES: Distributions and withdrawals payable 63 343 9 46 461 Undistributed participants' loans 16 2 58 (76) - ------- ------- ------ ------- ------ -------- Total liabilities 79 345 9 104 (76) 461 ------- ------- ------ ------- ------ -------- Plan equity $39,665 $68,372 $4,287 $51,246 $4,194 $167,764 ======= ======= ====== ======= ====== ========
The accompanying notes are an integral part of these financial statements. -5- PHILIP MORRIS INCORPORATED DEFERRED PROFIT-SHARING PLAN FOR CRAFT EMPLOYEES STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY FOR THE YEAR ENDED DECEMBER 31, 1994 (IN THOUSANDS OF DOLLARS) -----
U.S. EQUITY INTEREST GOVERNMENT PARTICIPANTS' INDEX INCOME OBLIGATIONS PHILIP MORRIS LOAN FUND FUND FUND STOCK FUND ACCOUNT TOTAL -------- --------- ------------ -------------- -------------- --------- ADDITIONS: Employer contributions $ 2,055 $ 3,856 $1,085 $ 3,282 $ 10,278 Employee contributions 622 1,087 46 950 2,705 Allocated share of Trust investment activities: Interest income 4,825 160 18 $ 273 5,276 Dividend income 3 2,677 2,680 Net appreciation (depreciation) in fair value of investments 619 (64) 1,278 1,833 ------- ------- ------ ------- ------- -------- 622 4,825 96 3,973 273 9,789 ------- ------- ------ ------- ------- -------- Total additions 3,299 9,768 1,227 8,205 273 22,772 ------- ------- ------ ------- ------- -------- DEDUCTIONS: Distributions and withdrawals (1,642) (6,016) (261) (2,656) (139) (10,714) General and administrative expenses (19) (42) (7) (20) (88) ------- ------- ------ ------- ------- -------- Total deductions (1,661) (6,058) (268) (2,676) (139) (10,802) ------- ------- ------ ------- ------- -------- Net transfers among funds (1,128) 1,882 (343) (411) - Net transfers between plans 3 248 (5) 66 7 319 Participants' loans (500) (686) (78) (601) 1,865 - Participants' loan repayments 350 609 199 474 (1,632) - ------- ------- ------ ------- ------- -------- Net additions 363 5,763 732 5,057 374 12,289 PLAN EQUITY: Beginning of year 39,665 68,372 4,287 51,246 4,194 167,764 ------- ------- ------ ------- ------- -------- End of year $40,028 $74,135 $5,019 $56,303 $ 4,568 $180,053 ======= ======= ====== ======= ======= ========
The accompanying notes are an integral part of these financial statements. -6- PHILIP MORRIS INCORPORATED DEFERRED PROFIT-SHARING PLAN FOR CRAFT EMPLOYEES STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY FOR THE YEAR ENDED DECEMBER 31, 1993 (IN THOUSANDS OF DOLLARS) -----
U.S. EQUITY INTEREST GOVERNMENT PARTICIPANTS' INDEX INCOME OBLIGATIONS PHILIP MORRIS LOAN FUND FUND FUND STOCK FUND ACCOUNT TOTAL -------- --------- ------------ -------------- -------------- --------- ADDITIONS: Employer contributions $ 2,206 $ 3,790 $1,112 $ 3,202 $ 10,310 Employee contributions 503 844 52 1,036 2,435 Allocated share of Trust investment activities: Interest income 1 4,345 114 10 $ 295 4,765 Dividend income 2,394 2,394 Net (depreciation) appreciation in fair value of investments 3,484 (2) (19,628) (16,146) ------- ------- ------ ------- ------- -------- 3,485 4,345 112 (17,224) 295 (8,987) ------- ------- ------ ------- ------- -------- Total additions 6,194 8,979 1,276 (12,986) 295 3,758 ------- ------- ------ ------- ------- -------- DEDUCTIONS: Distributions and withdrawals (1,004) (3,815) (18) (1,273) (102) (6,212) General and administrative expenses (16) (37) (5) (17) (75) ------- ------- ------ ------- ------- -------- Total deductions (1,020) (3,852) (23) (1,290) (102) (6,287) ------- ------- ------ ------- ------- -------- Net transfers among funds (286) 7,520 (680) (6,554) - Net transfers between plans 640 384 68 528 58 1,678 Participants' loans (510) (520) (35) (739) 1,804 - Participants' loan repayments 302 579 197 580 (1,658) - ------- ------- ------ ------- ------- -------- Net (deductions) additions 5,320 13,090 803 (20,461) 397 (851) PLAN EQUITY: Beginning of year 34,345 55,282 3,484 71,707 3,797 168,615 ------- ------- ------ ------- ------- -------- End of year $39,665 $68,372 $4,287 $51,246 $ 4,194 $167,764 ======= ======= ====== ======= ======= ========
The accompanying notes are an integral part of these financial statements. -7- PHILIP MORRIS INCORPORATED DEFERRED PROFIT-SHARING PLAN FOR CRAFT EMPLOYEES STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY FOR THE YEAR ENDED DECEMBER 31, 1992 (IN THOUSANDS OF DOLLARS) -----
U.S. EQUITY INTEREST GOVERNMENT PARTICIPANTS' INDEX INCOME OBLIGATIONS PHILIP MORRIS LOAN FUND FUND FUND STOCK FUND ACCOUNT TOTAL --------- --------- ------------ -------------- -------------- --------- ADDITIONS: Employer contributions $ 1,950 $ 3,390 $1,432 $ 4,812 $ 11,584 Employee contributions 628 949 49 1,340 2,966 Allocated share of Trust investment activities: Interest income 1 4,014 56 21 $ 320 4,412 Dividend income 1,968 1,968 Net appreciation (depreciation) in fair value of investments 2,422 (3) (1,874) 545 -------- ------- ------ ------- ------- -------- 2,423 4,014 53 115 320 6,925 -------- ------- ------ ------- ------- -------- Total additions 5,001 8,353 1,534 6,267 320 21,475 -------- ------- ------ ------- ------- -------- DEDUCTIONS: Distributions and withdrawals (410) (3,496) (1) (1,046) (153) (5,106) General and administrative expenses (15) (39) (2) (14) (70) -------- ------- ------ ------- ------- -------- Total deductions (425) (3,535) (3) (1,060) (153) (5,176) -------- ------- ------ ------- ------- -------- Net transfers among funds (10,120) (3,774) 782 13,112 - Net transfers between plans 76 428 170 24 698 Participants' loans (559) (405) (4) (578) 1,546 - Participants' loan repayments 295 520 128 566 (1,509) - -------- ------- ------ ------- ------- -------- Net additions (deductions) (5,732) 1,587 2,437 18,477 228 16,997 PLAN EQUITY: Beginning of year 40,077 53,695 1,047 53,230 3,569 151,618 -------- ------- ------ ------- ------- -------- End of year $ 34,345 $55,282 $3,484 $71,707 $ 3,797 $168,615 ======== ======= ====== ======= ======= ========
The accompanying notes are an integral part of these financial statements. -8- PHILIP MORRIS INCORPORATED DEFERRED PROFIT-SHARING PLAN FOR CRAFT EMPLOYEES NOTES TO FINANCIAL STATEMENTS 1. GENERAL DESCRIPTION OF THE PLAN: The Philip Morris Incorporated Deferred Profit-Sharing Plan for Craft Employees (the "Plan") is a defined contribution plan maintained for the benefit of eligible employees of Philip Morris Incorporated ("Philip Morris"), represented by the International Association of Machinists and Aerospace Workers and other unions. Philip Morris is a subsidiary of Philip Morris Companies Inc. (the "Company"). The Plan is designed to provide eligible employees with an opportunity to share in the profits of Philip Morris and to invest certain of their funds in a tax-advantaged manner. Eligible employees generally may make before-tax and after-tax contributions beginning on or after the January 1 following their respective dates of hire and become eligible for the Philip Morris contribution (the "Contribution") upon completion of twenty-four months of accredited service. Each year, Philip Morris makes the Contribution to the Plan in accordance with the formula described in Note 3. The provisions of the Plan are detailed in the official Plan document which legally governs the operation of the Plan. The administration of the Plan has generally been delegated to the Corporate Employee Benefit Committee of the Company (the "Committee"), a Management Committee for Employee Benefits (the "Management Committee") comprised of certain members of the Committee, and the Senior Vice President, Human Resources and Administration of the Company (the "Administrator"). The Corporate Employee Plans Investment Committee of Philip Morris Companies Inc. (the "Investment Committee") (the Committee, the Management Committee, the Administrator and the Investment Committee, are hereinafter collectively referred to as the "Fiduciaries") is responsible for the selection of the investment options in which participants invest their assets in the Plan and monitors the performance of these investment options. Assets of the Plan are co-invested with the assets of the Philip Morris Incorporated Deferred Profit-Sharing Plan (the "Tobacco Workers Plan") and the assets of the Philip Morris Deferred Profit-Sharing Plan (the "DPS Plan") in a commingled investment fund known as the Philip Morris Deferred Profit- Sharing Trust Fund (the "Trust") (see Note 7). Participants have the option of investing their Plan Accounts (see Note 4) in 10% increments in four funds: EQUITY INDEX FUND - This fund is invested primarily in an index fund of stocks on a weighted average basis in approximately the same proportion as the Standard & Poor's Composite Index of 500 Stocks ("S&P 500"). INTEREST INCOME FUND - This fund consists primarily of investment contracts entered into by Bankers Trust Company (the "Trustee") with financial institutions, each of which agrees to repay in full the amounts invested with the institution, plus interest. The assets of the Interest Income Fund are also -9- PHILIP MORRIS INCORPORATED DEFERRED PROFIT-SHARING PLAN FOR CRAFT EMPLOYEES NOTES TO FINANCIAL STATEMENTS (CONTINUED) invested in pools of mortgage-backed and asset-backed securities, corporate bonds, and obligations of the United States government and its agencies. As an integral part of the purchase of each pool of these investments for the Interest Income Fund, a financial institution agrees to protect the pool to the extent its market value fluctuates, but not in the event of a default of any security in the pool. U.S. GOVERNMENT OBLIGATIONS FUND - This fund includes primarily direct obligations of the U.S. Government or its agencies, obligations guaranteed by the U.S. Government or its agencies, and fully insured bank deposits. PHILIP MORRIS STOCK FUND - This fund is invested in the common stock, $1 par value, of the Company (the "Common Stock") and short- term temporary investments. None of the foregoing funds guarantees a return to the participant. Prior to June 1, 1994, participants could change their investment elections three times during each calendar year. Effective June 1, 1994, participants can change their investment elections once each month. Any Contribution and participant contributions made to an Account established on and after April 1, 1992 for which no investment direction has been given are invested in the U.S. Government Obligations Fund. In all other cases, participant contributions made to an Account prior to April 1, 1992, for which no investment direction was given by the participant are invested in the Equity Index Fund. Each participant may vote all the shares of Common Stock held in his or her Accounts and invested in the Philip Morris Stock Fund. The Trustee will vote full and fractional shares of the Common Stock in accordance with each individual participant's instruction. The Trustee votes those shares of Common Stock for which no or inadequate voting instructions have been received in the same proportions as the shares for which instructions have been received. At December 31, 1994 and 1993, there were 1,315 and 1,362 participants, respectively, some of whom elected to invest in more than one fund. Set forth below is the number of participants investing in each fund.
DECEMBER 31, -------------- 1994 1993 ------ ------ Equity Index Fund 681 679 Interest Income Fund 807 799 U.S. Government Obligations Fund 172 177 Philip Morris Stock Fund 1,148 1,204
-10- PHILIP MORRIS INCORPORATED DEFERRED PROFIT-SHARING PLAN FOR CRAFT EMPLOYEES NOTES TO FINANCIAL STATEMENTS (CONTINUED) Each participant is at all times fully vested in the balance of all of his or her Accounts, which includes a Company Account and may include a Personal Before-Tax, Personal After-Tax, Rollover and PAYSOP Accounts. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: VALUATION OF TRUST INVESTMENTS: Investments in common trust funds of the General Employee Benefit Common Trust of Bankers Trust Company ("GEBT") are valued on the basis of the relative interest of each participating investor (including each participant) in the fair value of the underlying assets of each of the respective GEBT common trust funds. Investment contracts and the pools of mortgage-backed and asset-backed securities and other investments in the Interest Income Fund are recorded at their contract values, which represent contributions and reinvested income, less any withdrawals plus accrued interest. Securities listed on an exchange are valued at the closing price on the last business day of the year; listed securities for which no sale was reported on that date are recorded at the last reported bid price. Securities that are not listed on an exchange are generally traded in active markets and valued by the Trustee from quoted market prices. Short-term temporary investments are generally carried at cost, which approximates fair value. INVESTMENT TRANSACTIONS AND INVESTMENT INCOME OF THE TRUST: Investment transactions are accounted for on the dates purchases or sales are executed. Realized gains and losses are computed on the basis of average cost of investments sold. Dividend income is recorded on the ex- dividend date; interest income is recorded as earned on an accrual basis. In accordance with the policy of stating investments at fair value, the net appreciation (depreciation) in the fair value of investments reflects both realized gains or losses and the change in the unrealized appreciation of investments held at year-end (see Note 8). 3. CONTRIBUTIONS: The Contribution for the year is accrued by the Plan based upon the amount to be funded each year in accordance with the defined contribution formula noted below. Participants' contributions are recorded in the period in which they are withheld by Philip Morris. -11- PHILIP MORRIS INCORPORATED DEFERRED PROFIT-SHARING PLAN FOR CRAFT EMPLOYEES NOTES TO FINANCIAL STATEMENTS (CONTINUED) For the year ended December 31, 1994, the Contribution on behalf of eligible employees of Philip Morris who have met the twenty-four month service requirement is an amount equal to the lesser of (1) three percent of Operating Profit (defined below), less the amounts allocated for participants in the DPS Plan and the Tobacco Workers Plan and (2) fifteen percent of the aggregate participant compensation for such year of the participants employed by Philip Morris among whom the Contribution is to be allocated. The Contribution to the Plan and contributions to the DPS Plan and the Tobacco Workers Plan may not be more than three percent of consolidated earnings of the Company and its subsidiaries before income taxes and cumulative effect of any accounting change and provision for deferred profit-sharing and incentive compensation plans. Operating Profit is defined as the earnings of Philip Morris, before cumulative effect of any accounting changes, discontinued operations and extraordinary items, interest and other debt expense, income taxes, amortization of goodwill, minority interest, unallocated corporate expenses, the amount of any deduction used in computing such earnings for the Contribution to the Plan and the contributions to the DPS Plan and the Tobacco Workers Plan and contributions to any incentive compensation plan. For the years ended December 31, 1993 and 1992, the Contribution was an amount equal to the lesser of (1) three percent of consolidated earnings of the Company and its subsidiaries before income taxes and cumulative effect of any accounting change and provisions for deferred profit-sharing and incentive compensation plans, less the amounts allocated for participants in the DPS Plan and the Tobacco Workers Plan and (2) fifteen percent of the aggregate participant compensation as defined by the Plan. No contribution is required from any participant under the Plan. Participants may make contributions on a before-tax and after-tax basis to the Plan. If a participant has not made the maximum after-tax contribution, he or she may, subject to certain statutory limits, make a lump sum contribution which may not exceed the maximum amount of personal after-tax contributions permitted for all calendar years after January 1, 1971 in which he or she was a participant, less the aggregate of all of such contributions previously made. The percentage of compensation available for these contributions varies from year-to-year in order that the aggregate contributions actually made by participants do not cause the Plan to violate limitations on such contributions set forth in the Internal Revenue Code of 1986, as amended (the "Code"). The Code also imposes a dollar limitation on the amount of before-tax contributions for a calendar year. For 1994, each participant's before-tax contribution was limited to $9,240; for 1995, each participant's before-tax contribution will again be limited to $9,240, with a limitation in each year of eight percent of compensation on the total amount of before-tax and after-tax contributions. -12- PHILIP MORRIS INCORPORATED DEFERRED PROFIT-SHARING PLAN FOR CRAFT EMPLOYEES NOTES TO FINANCIAL STATEMENTS (CONTINUED) While Philip Morris has not expressed any intent to discontinue making the Contribution, it is free to do so at any time. The Contribution and participant contributions are subject to specified limitations as described in the Code and the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). 4. VALUATION OF PARTICIPANT ACCOUNTS: The Trustee maintains Accounts for each participant to reflect the source and the participant's share of the funds invested in the Trust: Account Source ------- ------ Company Account Contributions Personal Before-Tax Account Before-tax contributions Personal After-Tax Account After-tax contributions Rollover Account Amounts transferred, directly or indirectly, from another plan qualified under Section 401(a) of the Code PAYSOP Account The account balance transferred from the Philip Morris Union Employees' Stock Ownership Plan Loan Account Outstanding loans obtained from the Plan At the end of each month, the Trustee determines the current fair value of each fund in the Trust. The fair value of each participant's share in the Trust is determined with respect to their Company, Personal Before-Tax, Personal After-Tax, Rollover and PAYSOP Accounts on the basis of their proportionate share in each fund. 5. WITHDRAWALS AND DISTRIBUTIONS: Participants may make withdrawals against their Company, Personal Before-Tax, Personal After-Tax, Rollover and PAYSOP Accounts in accordance with the provisions outlined in the Plan. All withdrawals by participants are subject to approval of the Committee (or other administrator of the Plan acting pursuant to the Committee's delegated authority) and will not be permitted if they would have the effect of disqualifying the Plan and the related Trust from exemption from taxation. -13- PHILIP MORRIS INCORPORATED DEFERRED PROFIT-SHARING PLAN FOR CRAFT EMPLOYEES NOTES TO FINANCIAL STATEMENTS (IN THOUSANDS OF DOLLARS) (CONTINUED) Only 50% of a participant's Company Account as of December 31, 1988 is available for hardship withdrawals as defined by the Plan. Any withdrawal will reduce the amount for future withdrawals. The portion of a Company Account eligible for withdrawal will be unavailable if it serves as collateral for an outstanding loan. Distributions are made only in the event that a person ceases to be a participant. Upon termination of employment, including retirement, a participant has several options available, as described in the Plan, with respect to his or her Company, Personal Before-Tax, Personal After-Tax, Rollover and PAYSOP Accounts. Normally, distributions are made one month after such termination. In the event the Plan is terminated, distributions will be made in accordance with the current value of participants' Accounts under the direction of the Committee and in accordance with the Code. 6. PARTICIPANTS' LOANS: The loan program permits participants to borrow from their Company, Personal Before-Tax, Personal After-Tax, Rollover and PAYSOP Accounts under the Plan in accordance with the provisions outlined in the Plan. A participant's Loan Account equals the principal amount of his or her loans outstanding. The principal amount of loan repayments reduce the Loan Account and are added back to the participant's Accounts originally used as the source of the loan. The repaid amount (including interest) is reinvested in the funds according to the participant's current investment authorization. Participants' loans are carried at the original principal amount less principal repayments. Participants' loan repayments receivable represent amounts withheld by Philip Morris from participants' compensation and not yet remitted to the Plan. Amounts to be disbursed under employee loan agreements are recorded as undistributed participants' loans as of the loan agreement date. 7. INVESTMENTS HELD BY THE TRUST: In 1994 and 1993, $319 and $1,678 were transferred into the Plan, net of transfers out of the Plan, respectively, from the DPS Plan and the Tobacco Workers Plan as a result of employees being transferred between hourly and salaried status or between the International Association of Machinists and Aerospace Workers and other unions and the Bakery, Confectionery and Tobacco Workers Union. -14- PHILIP MORRIS INCORPORATED DEFERRED PROFIT-SHARING PLAN FOR CRAFT EMPLOYEES NOTES TO FINANCIAL STATEMENTS (IN THOUSANDS OF DOLLARS) (CONTINUED) The Plan's allocated share of the Trust's net assets and investment activities is based upon the total of each individual participant's share of the Trust. The Plan's approximate allocated share of the Trust and its approximate allocated share of the net assets of each fund in the Trust at December 31, 1994 and 1993, were:
1994 1993 ----- ----- Trust 8% 7% Equity Index Fund 6% 6% Interest Income Fund 8% 8% U.S. Government Obligations Fund 5% 5% Philip Morris Stock Fund 9% 8% Participants' Loan Account 4% 4%
The Plan's approximate allocated share of the Trust's investment activities for the years ended December 31, 1994, 1993 and 1992, was 8%, 8% and 7%, respectively. Taxes and fees incurred by the Trust and most of the costs of administering the Plan and Trust paid to third parties are paid by the Trust. The following expenses are paid from the Plan's assets: investment management fees, brokerage commissions, trustee's fees, audit fees, recordkeeping fees and legal fees. For 1994 and 1993, the approximate amount of such expenses, expressed as a percentage of the average net assets of each fund under the Plan, are as follows:
1994 1993 ----- ----- Equity Index Fund 0.05% 0.04% Interest Income Fund 0.06% 0.06% U.S. Government Obligations Fund 0.15% 0.13% Philip Morris Stock Fund 0.04% 0.04%
Investments that represented five percent or more of total Trust assets as of December 31, 1994 and 1993, were:
1994 1993 -------- -------- Philip Morris Stock Fund Common Stock $575,890 $583,717 GEBT Equity Index Fund $599,219 $611,007 Massachusetts Mutual Life Insurance Co. $121,809 $114,812 Commonwealth Life Insurance Co. $142,303 -
The GEBT Equity Index Fund currently includes Common Stock. -15- PHILIP MORRIS INCORPORATED DEFERRED PROFIT-SHARING PLAN FOR CRAFT EMPLOYEES NOTES TO FINANCIAL STATEMENTS (IN THOUSANDS OF DOLLARS) (CONTINUED) At December 31, 1994 and 1993, the financial position of the Trust was:
1994 1993 ---------- ---------- Assets: Investments at fair value: Equity Index Fund: GEBT Equity Index Fund (cost $589,262 and $378,818) $ 599,219 $ 611,007 Short-term temporary investments (cost approximates fair value) 552 1,632 Interest Income Fund: Investment contracts (cost approximates fair value) 865,384 814,023 Short-term temporary investments (cost approximates fair value) 13,432 11,879 U.S. Government Obligations Fund: Federal agency obligations (cost $6,669 and $12,240) 6,582 12,290 Government securities (cost $57,299 and $40,047) 56,632 40,050 Corporate obligations (cost $1,636) - 1,660 Short-term temporary investments (cost approximates fair value) 10,326 13,240 Philip Morris Stock Fund: Common stock (cost $388,051 and $391,987) 575,890 583,717 Short-term temporary investments (cost approximates fair value) 4,240 1,012 Participants' Loan Account: Loans to participants 102,894 106,306 ---------- ---------- Total investments 2,235,151 2,196,816 Receivables: Interest income 1,469 1,071 Dividend income 8,267 6,898 ---------- ---------- Total assets 2,244,887 2,204,785 Liabilities: Other payables 107 363 ---------- ---------- Net assets $2,244,780 $2,204,422 ========== ==========
-16- PHILIP MORRIS INCORPORATED DEFERRED PROFIT-SHARING PLAN FOR CRAFT EMPLOYEES NOTES TO FINANCIAL STATEMENTS (IN THOUSANDS OF DOLLARS, EXCEPT PER UNIT DATA) (CONTINUED) The changes in the Trust net assets for the years ended December 31, 1994, 1993 and 1992, were:
1994 1993 1992 ----------- ----------- ----------- Additions: Employer contributions $ 156,080 $ 169,173 $ 164,444 Employee contributions 29,484 30,289 31,496 Investment activities: Interest 63,760 60,694 54,772 Dividends 31,039 30,052 27,537 Interest on participant loans 6,379 7,199 7,586 ---------- ---------- ---------- 101,178 97,945 89,895 Net appreciation (depreciation) in fair value of investments 22,530 (203,526) 11,303 ---------- ---------- ---------- Net investment activities 123,708 (105,581) 101,198 Deductions: Distributions and withdrawals (267,720) (217,387) (82,158) General and administrative expenses (1,194) (1,106) (1,060) ---------- ---------- ---------- Increase (decrease) in Trust net assets 40,358 (124,612) 213,920 Net assets: Beginning of year 2,204,422 2,329,034 2,115,114 ---------- ---------- ---------- End of year $2,244,780 $2,204,422 $2,329,034 ========== ========== ==========
The number of employee participation units and the net asset value per unit for the funds at December 31, 1994 and 1993, were:
U.S. EQUITY INTEREST GOVERNMENT PARTICIPANTS' INDEX INCOME OBLIGATIONS PHILIP MORRIS LOAN FUND FUND FUND STOCK FUND ACCOUNT TOTAL -------- -------- ----------- ------------- ------------- ---------- 1994: Net assets $599,746 $878,797 $74,339 $588,459 $103,439 $2,244,780 Number of participation units 143,186 291,597 32,217 163,839 Net asset value per unit $4.1886 $3.0137 $2.3074 $3.5917 1993: Net assets $612,574 $825,882 $67,656 $591,415 $106,895 $2,204,422 Number of participation units 146,575 293,146 29,406 175,318 Net asset value per unit $4.1793 $2.8173 $2.3008 $3.3734
-17- PHILIP MORRIS INCORPORATED DEFERRED PROFIT-SHARING PLAN FOR CRAFT EMPLOYEES NOTES TO FINANCIAL STATEMENTS (IN THOUSANDS OF DOLLARS) (CONTINUED) 8. NET APPRECIATION (DEPRECIATION) IN FAIR VALUE OF TRUST INVESTMENTS: The realized gains and losses on disposals and changes in unrealized appreciation or depreciation of investments in the Trust for the years ended December 31, 1994, 1993 and 1992, were:
U.S. EQUITY GOVERNMENT INDEX OBLIGATIONS PHILIP MORRIS FUND FUND STOCK FUND TOTAL ---------- ------------ -------------- ----------- 1994 - ---- Realized gains (losses): Proceeds $712,663 $195,232 $161,885 $1,069,780 Cost 481,914 195,625 142,757 820,296 -------- -------- -------- ---------- Net realized gains (losses) 230,749 (393) 19,128 249,484 -------- -------- -------- ---------- Unrealized appreciation (depreciation): Beginning of year 232,189 78 191,729 423,996 End of year 9,957 (753) 187,838 197,042 -------- -------- -------- ---------- (Decrease) (222,232) (831) (3,891) (226,954) -------- -------- -------- ---------- Net appreciation (depreciation) in fair value of investments $ 8,517 ($ 1,224) $ 15,237 $ 22,530 ======== ======== ======== ========== 1993 - ---- Realized gains: Proceeds $120,081 $465,701 $256,282 $ 842,064 Cost 87,110 465,217 216,219 768,546 -------- -------- -------- ---------- Net realized gains 32,971 484 40,063 73,518 -------- -------- -------- ---------- Unrealized appreciation: Beginning of year 205,950 554 494,536 701,040 End of year 232,189 78 191,729 423,996 -------- -------- -------- ---------- (Decrease) increase 26,239 (476) (302,807) (277,044) -------- -------- -------- ---------- Net (depreciation) appreciation in fair value of investments $ 59,210 $ 8 ($262,744) ($ 203,526) ======== ======== ======== ==========
-18- PHILIP MORRIS INCORPORATED DEFERRED PROFIT-SHARING PLAN FOR CRAFT EMPLOYEES NOTES TO FINANCIAL STATEMENTS (IN THOUSANDS OF DOLLARS) (CONCLUDED)
U.S. EQUITY GOVERNMENT INDEX OBLIGATIONS PHILIP MORRIS FUND FUND STOCK FUND TOTAL ---------- ------------ -------------- ----------- 1992 - ---- Realized gains: Proceeds $169,470 $97,959 $232,729 $500,158 Cost 141,824 97,889 216,234 455,947 -------- ------- -------- -------- Net realized gains 27,646 70 16,495 44,211 -------- ------- -------- -------- Unrealized appreciation: Beginning of year 191,418 433 542,097 733,948 End of year 205,950 554 494,536 701,040 -------- ------- -------- -------- (Decrease) increase 14,532 121 (47,561) (32,908) -------- ------- -------- -------- Net appreciation (depreciation) in fair value of investments $ 42,178 $ 191 ($ 31,066) $ 11,303 ======== ======= ======== ========
9. TAX STATUS: The U.S. Treasury Department has determined that the Tobacco Workers Plan, as amended and in effect as of January 1, 1988, constitutes a qualified plan under Section 401(a) of the Code and the related Trust is, therefore, exempt from Federal income taxes under the provisions of Section 501(a) of the Code. The Tobacco Workers Plan has been amended several times since that date. These amendments have been drafted to comply with the provisions of the Code applicable to qualified plans. The Fiduciaries believe that the Tobacco Workers Plan, as so amended, continues to comply with the applicable provisions of the Code and that the Tobacco Workers Plan continues to be administered in accordance with the applicable provisions of the Code. The Plan is identical in all material respects to the Tobacco Workers Plan. The Plan was recently submitted to the Internal Revenue Service for a determination that the Plan and the related Trust meet the requirements of Section 401(a) of the Code and that the related Trust is exempt from Federal income taxes under the provisions of Section 501(a) of the Code. Participants will not be subject to income tax on the Contribution and before-tax contributions made on their behalf by Philip Morris, nor on earnings credited to their Accounts until withdrawn or distributed. -19- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Corporate Employee Benefit Committee of Philip Morris Companies Inc., having administrative responsibility of the Plan, has duly caused this annual report to be signed by the undersigned thereunto duly authorized. PHILIP MORRIS INCORPORATED DEFERRED PROFIT-SHARING PLAN FOR CRAFT EMPLOYEES (Name of Plan) By /s/ LARRY A. GATES ------------------------------------ Larry A. Gates, Chairman, Corporate Employee Benefit Committee of Philip Morris Companies Inc. Date: April 26, 1995 -20- PHILIP MORRIS DEFERRED PROFIT-SHARING TRUST FUND SCHEDULE I - INVESTMENTS AS OF DECEMBER 31, 1994
COLUMN A COLUMN B COLUMN C COLUMN D -------- --------------- ------------ ------------ FACE AMOUNT COST OR NUMBER BASIS OF NAME OF ISSUER AND TITLE OF ISSUE OF SHARES/UNITS INVESTMENTS FAIR VALUE - --------------------------------- --------------- ------------ ------------ EQUITY INDEX FUND -- 26.83% GEBT Equity Index Fund -- 26.81% 596,952,542 $589,262,285 $599,219,171 SHORT-TERM INVESTMENTS -- 0.02% GEBT Short-Term Investment Fund 552,122 552,122 552,122 ------------ ------------ TOTAL EQUITY INDEX FUND 589,814,407 599,771,293 ------------ ------------ PHILIP MORRIS STOCK FUND -- 25.96% COMMON STOCK -- 25.77% TOBACCO -- 25.77% Philip Morris Companies Inc. 10,015,471 388,050,974 575,889,582 SHORT-TERM INVESTMENTS -- 0.19% GEBT Short-Term Investment Fund 4,240,152 4,240,152 4,240,152 ------------ ------------ TOTAL PHILIP MORRIS STOCK FUND 392,291,126 580,129,734 ------------ ------------ INTEREST INCOME FUND -- 39.32% INVESTMENT CONTRACTS -- 38.72% PARTICIPATION CONTRACTS WITH INSTITUTIONS -- 27.75% Allstate Life Insurance Company No. GA-4603 9.18% matures 1/1/95 5,024,244 5,024,244 5,024,244 Prudential Asset Management Company No. 5880 9.42% matures 3/31/95 2,623,672 2,623,672 2,623,672 John Hancock Mutual Life Insurance Company No. 4688 8.54% matures 10/31/95 2,192,903 2,192,903 2,192,903 Metropolitan Life Insurance Company GAC No. 9893-9 9.32% matures 11/1/95 15,880,249 15,880,249 15,880,249 Massachusetts Mutual Life Insurance Company No. 6200 9.20% matures 3/1/96 17,053,415 17,053,415 17,053,415
S-1 PHILIP MORRIS DEFERRED PROFIT-SHARING TRUST FUND SCHEDULE I - INVESTMENTS AS OF DECEMBER 31, 1994
COLUMN A COLUMN B COLUMN C COLUMN D -------- --------------- ------------ ------------ FACE AMOUNT COST OR NUMBER BASIS OF NAME OF ISSUER AND TITLE OF ISSUE OF SHARES/UNITS INVESTMENTS FAIR VALUE - --------------------------------- --------------- ------------ ------------ PARTICIPATION CONTRACTS WITH INSTITUTIONS (CONTINUED) CNA Insurance Company GP 35000-B 4.71% matures 3/8/96 271,799 $ 271,799 $ 271,799 Provident National Assurance Company No. 0270425303A 8.93% matures 3/15/96 35,135,404 35,135,404 35,135,404 Massachusetts Mutual Life Insurance Company No. 6280 9.55% matures 6/30/96 14,375,226 14,375,226 14,375,226 Prudential Insurance Company of America No. GA 5905-213 9.50% matures 8/31/96 3,941,452 3,941,452 3,941,452 New York Life Insurance Company No. GA-20012 6.25% matures 9/17/96 28,511,997 28,511,997 28,511,997 Massachusetts Mutual Life Insurance Company No. 10403 6.59% matures 9/30/96 90,380,223 90,380,223 90,380,223 John Hancock Mutual Life Insurance Company No. 6435 6.95% matures 12/2/96 29,013,127 29,013,127 29,013,127 Prudential Asset Management Company No. 5905-215 9.19% matures 12/31/96 16,378,500 16,378,500 16,378,500 Prudential Asset Management Company No. 5905-211 8.29% matures 2/1/97 4,578,686 4,578,686 4,578,686 Bank of America No. SP1 212 9.47% matures 7/31/97 20,884,732 20,884,732 20,884,732 Hartford Life Insurance Company GA No. 9067 8.60% matures 9/30/97 34,609,601 34,609,601 34,609,601 Prudential Life Insurance Company No. 5905-216 9.45% matures 9/30/97 20,694,588 20,694,588 20,694,588 Commonwealth Life Insurance Company No. 00343 FR 8.68% matures 2/28/98 23,595,435 23,595,435 23,595,435 New York Life Insurance Company No. 06121 8.50% matures 3/1/98 46,766,426 46,766,426 46,766,426 Principal Mutual Life Insurance Company GAC No. 748-112 8.87% matures 5/1/98 62,181,303 62,181,303 62,181,303
S-2 PHILIP MORRIS DEFERRED PROFIT-SHARING TRUST FUND SCHEDULE I - INVESTMENTS AS OF DECEMBER 31, 1994
COLUMN A COLUMN B COLUMN C COLUMN D -------- --------------- ------------ ------------ FACE AMOUNT COST OR NUMBER BASIS OF NAME OF ISSUER AND TITLE OF ISSUE OF SHARES/UNITS INVESTMENTS FAIR VALUE - --------------------------------- --------------- ------------ ------------ PARTICIPATION CONTRACTS WITH INSTITUTIONS (CONTINUED) Allstate Life Insurance Company No. GA-5421 6.47% matures 4/7/99 26,448,877 $26,448,877 $26,448,877 New York Life Insurance Company No. GA-06989 7.33% matures 7/31/99 23,773,758 23,773,758 23,773,758 Principal Mutual Life Insurance Company GAC No. 3-748-114 5.82% matures 9/6/99 31,831,814 31,831,814 31,831,814 Security Life of Denver No. FA 0147 9.10% matures 12/31/99 3,437,343 3,437,343 3,437,343 Metropolitan Life Insurance Company No. 12861 5.60% 60,680,643 60,680,643 60,680,643 ------------ ------------ TOTAL CONTRACTS 620,265,417 620,265,417 ------------ ------------ FINANCIAL INSTITUTION POOLS -- 10.97% Provident Life & Accident GAC No. 63005580 5.45% GEBT Short-Term Investment Fund 389,243 389,243 U. S. Treasury Note matures 3/31/96 5.13% 4,356,218 4,356,218 U. S. Treasury Note matures 6/30/96 6.00% 2,163,331 2,163,331 U. S. Treasury Note matures 11/30/98 5.13% 3,537,250 3,537,250 U. S. Treasury Note matures 8/15/2002 6.38% 2,155,588 2,155,588 Federal Home Loan Mtg. Corporation matures 9/15/2002 4.85% 2,568,495 2,568,495 Federal National Mortgage Association Remic matures 7/25/2003 5.40% 2,685,483 2,685,483 U. S. Treasury Note matures 8/15/2003 5.75% 640,091 640,091 Federal Home Loan Mtg. Corporation matures 9/15/2008 6.00% 1,630,945 1,630,945 Federal Home Loan Mtg. Corporation matures 11/1/2008 6.00% 2,389,981 2,389,981 Federal National Mortgage Association Pool matures 7/1/2009 6.00% 2,398,255 2,398,255 Federal National Mortgage Association matures 9/25/2019 5.50% 2,449,935 2,449,935
S-3 PHILIP MORRIS DEFERRED PROFIT-SHARING TRUST FUND SCHEDULE I - INVESTMENTS AS OF DECEMBER 31, 1994
COLUMN A COLUMN B COLUMN C COLUMN D -------- --------------- ------------ ------------ FACE AMOUNT COST OR NUMBER BASIS OF NAME OF ISSUER AND TITLE OF ISSUE OF SHARES/UNITS INVESTMENTS FAIR VALUE - --------------------------------- --------------- ------------ ------------ FINANCIAL INSTITUTION POOLS (CONTINUED) Provident Life & Accident Contract (continued) Federal National Mortgage Association matures 8/25/2023 3.00% $ 2,296,384 $ 2,296,384 Federal National Mortgage Association Pool matures 6/1/2024 6.50% 2,374,298 2,374,298 ----------- ----------- Total Provident Life & Accident Contract 32,035,497 32,035,497 ----------- ----------- National Westminster Bank No. SAM 0104A 5.80% GEBT Short-Term Investment Fund 629,078 629,078 Federal National Mortgage Association Remic matures 6/25/2005 6.25% 1,790,003 1,790,003 Federal Home Loan Mtg. Corporation matures 8/15/2005 6.25% 891,669 891,669 Federal National Mortgage Association matures 8/25/2005 6.00% 386,440 386,440 Federal Home Loan Mtg. Corporation matures 8/15/2008 6.50% 2,517,005 2,517,005 Federal National Mortgage Association Pool matures 5/1/2009 7.00% 2,151,659 2,151,659 Federal National Mortgage Association Pool matures 5/1/2009 6.50% 2,148,622 2,148,622 Federal Home Loan Mtg. Corporation Pool matures 6/1/2009 6.50% 2,139,170 2,139,170 Federal Home Loan Mtg. Corporation Pool matures 7/1/2009 7.00% 2,239,435 2,239,435 Federal Home Loan Mtg. Corporation Pool matures 4/15/2011 5.00% 1,815,824 1,815,824 Federal National Mortgage Association matures 8/25/2012 5.60% 1,197,166 1,197,166 Federal Home Loan Mtg. Corporation matures 8/25/2013 6.70% 3,222,772 3,222,772 Federal National Mortgage Association matures 9/25/2015 6.00% 1,762,341 1,762,341 Federal Home Loan Mtg. Corporation matures 12/15/2015 6.50% 2,191,422 2,191,422 Federal National Mortgage Association matures 6/25/2016 5.70% 3,326,636 3,326,636 Federal National Mortgage Association matures 7/25/2016 5.65% 1,778,616 1,778,616 Federal Home Loan Mtg. Corporation matures 1/15/2018 6.00% 3,307,805 3,307,805 Federal National Mortgage Association matures 6/15/2018 7.00% 237,896 237,896
S-4 PHILIP MORRIS DEFERRED PROFIT-SHARING TRUST FUND SCHEDULE I - INVESTMENTS AS OF DECEMBER 31, 1994
COLUMN A COLUMN B COLUMN C COLUMN D -------- --------------- ------------ ------------ FACE AMOUNT COST OR NUMBER BASIS OF NAME OF ISSUER AND TITLE OF ISSUE OF SHARES/UNITS INVESTMENTS FAIR VALUE - --------------------------------- --------------- ------------ ------------ FINANCIAL INSTITUTION POOLS (CONTINUED) National Westminster Bank Contract (continued) Federal National Mortgage Association matures 1/25/2020 7.00% $ 3,261,761 $ 3,261,761 Government National Mortgage Association matures 5/15/2024 6.50% 2,764,456 2,764,456 ----------- ----------- Total National Westminster Bank Contract 39,759,776 39,759,776 ----------- ----------- Commonwealth Life Insurance Company No. ADA 00043 TR 6.02% GEBT Short-Term Investment Fund 3,954,649 3,954,649 U. S. Treasury Note matures 6/30/96 6.00% 10,701,245 10,701,245 Standard Credit Card Master Trust matures 8/7/96 5.88% 2,791,397 2,791,397 U. S. Treasury Note matures 10/31/98 4.75% 3,297,951 3,297,951 MBNA Master Credit Card Trust matures 8/15/99 6.20% 2,621,055 2,621,055 Federal Home Loan Mtg. Corporation matures 8/15/2005 4.00% 4,066,758 4,066,758 U. S. Treasury Note matures 8/15/2003 5.75% 2,830,193 2,830,193 Federal National Mortgage Association matures 9/9/2003 5.97% 264,248 264,248 Federal Home Loan Mtg. Corporation matures 11/15/2003 5.50% 5,090,285 5,090,285 Federal Home Loan Mtg. Corporation matures 2/15/2005 6.65% 5,127,953 5,127,953 Federal National Mortgage Association Remic matures 5/25/2005 6.70% 5,095,753 5,095,753 Federal Home Loan Mtg. Corporation matures 8/15/2005 6.70% 5,124,791 5,124,791 Federal National Mortgage Association Remic matures 1/25/2006 7.00% 3,536,863 3,536,863 Federal Home Loan Mtg. Corporation matures 4/15/2006 6.75% 5,789,369 5,789,369 Federal National Mortgage Association Remic matures 4/25/2006 6.25% 4,885,188 4,885,188 Federal National Mortgage Association Remic matures 8/25/2006 6.00% 4,690,954 4,690,954 Federal Home Loan Mtg. Corporation Pool matures 7/1/2008 7.00% 5,925,738 5,925,738 Federal National Mortgage Association Pool matures 5/1/2009 7.00% 7,775,187 7,775,187
S-5 PHILIP MORRIS DEFERRED PROFIT-SHARING TRUST FUND SCHEDULE I - INVESTMENTS AS OF DECEMBER 31, 1994
COLUMN A COLUMN B COLUMN C COLUMN D -------- --------------- ------------ ------------ FACE AMOUNT COST OR NUMBER BASIS OF NAME OF ISSUER AND TITLE OF ISSUE OF SHARES/UNITS INVESTMENTS FAIR VALUE - --------------------------------- --------------- ------------ ------------ FINANCIAL INSTITUTION POOLS (CONTINUED) Commonwealth Life Insurance Company (continued) Federal National Mortgage Association Remic matures 7/25/2011 5.50% $ 7,690,750 $ 7,690,750 Federal Home Loan Mtg. Corporation matures 12/15/2011 5.25% 5,258,286 5,258,286 Federal Home Loan Mtg. Corporation matures 5/15/2014 5.40% 5,125,581 5,125,581 Federal Home Loan Mtg. Corporation matures 12/15/2018 6.00% 2,454,000 2,454,000 Federal National Mortgage Association Remic matures 12/25/2018 4.75% 4,644,244 4,644,244 Federal Home Loan Mtg. Corporation matures 1/25/2019 6.25% 1,874,104 1,874,104 Government National Mortgage Association Pool matures 5/15/2024 6.50% 8,091,410 8,091,410 ------------ ------------ Total Commonwealth Life Insurance Company Contract 118,707,952 118,707,952 ------------ ------------ Peoples Life Insurance Company No. 106873 6.30% GEBT Short-Term Investment Fund 1,282,409 1,282,409 U. S. Treasury Note matures 2/15/97 4.75% 4,578,431 4,578,431 PRAT matures 5/2/98 6.45% 576,003 576,003 Federal Home Loan Mtg. Corporation Remic matures 12/15/98 5.50% 1,817,908 1,817,908 U. S. Treasury Note matures 2/28/99 5.50% 4,022,458 4,022,458 AMXMT matures 7/15/2001 5.38% 1,052,070 1,052,070 Federal Home Loan Mtg. Corporation Pool matures 11/1/2001 8.00% 483,334 483,334 Federal Home Loan Mtg. Corporation Remic matures 1/15/2002 4.75% 1,821,671 1,821,671 U. S. Treasury Note matures 8/15/2003 5.75% 3,824,819 3,824,819 Standard Credit Card Master Trust matures 11/7/2003 8.25% 568,832 568,832 U. S. Treasury Note matures 2/15/2004 5.88% 4,266,221 4,266,221 Federal National Mortgage Association Pool matures 11/1/2005 10.5% 1,886,068 1,886,068 Federal Home Loan Mtg. Corporation matures 2/15/2007 4.25% 4,101,725 4,101,725
S-6 PHILIP MORRIS DEFERRED PROFIT-SHARING TRUST FUND SCHEDULE I - INVESTMENTS AS OF DECEMBER 31, 1994
COLUMN A COLUMN B COLUMN C COLUMN D -------- --------------- ------------ ------------ FACE AMOUNT COST OR NUMBER BASIS OF NAME OF ISSUER AND TITLE OF ISSUE OF SHARES/UNITS INVESTMENTS FAIR VALUE - --------------------------------- --------------- ------------ ------------ FINANCIAL INSTITUTION POOLS (CONTINUED) Peoples Life Insurance Company (continued) Federal Home Loan Mtg. Corporation Pool matures 5/1/2009 6.00% $ 2,190,706 $ 2,190,706 Federal Home Loan Mtg. Corporation Pool matures 6/1/2009 6.50% 3,026,862 3,026,862 Federal National Mortgage Association Pool matures 7/1/2009 6.00% 1,240,280 1,240,280 Federal National Mortgage Association Pool matures 7/1/2009 7.00% 1,262,313 1,262,313 Federal Home Loan Mtg. Corporation matures 12/15/2010 5.25% 917,798 917,798 Federal National Mortgage Association matures 3/25/2012 5.00% 1,321,825 1,321,825 Federal Home Loan Mtg. Corporation Remic matures 1/15/2014 5.75% 1,330,777 1,330,777 Federal Home Loan Mtg. Corporation matures 1/15/2014 5.25% 3,993,205 3,993,205 Government National Mortgage Association matures 9/15/2019 9.00% 83,944 83,944 Federal National Mortgage Association matures 12/15/2019 6.00% 415,959 415,959 Government National Mortgage Association matures 12/15/2019 9.00% 821,063 821,063 Government National Mortgage Association matures 1/15/2020 9.00% 242,463 242,463 Government National Mortgage Association matures 6/15/2020 9.00% 421,196 421,196 Government National Mortgage Association matures 9/15/2020 9.00% 2,096,619 2,096,619 Government National Mortgage Association matures 10/20/2021 9.50% 1,503,081 1,503,081 Government National Mortgage Association matures 8/15/2022 9.00% 1,209,366 1,209,366 Government National Mortgage Association matures 5/15/2024 6.50% 2,140,140 2,140,140 Government National Mortgage Association matures 1/15/2025 9.00% 115,392 115,392 ------------ ------------ Total Peoples Life Insurance Company Contract 54,614,938 54,614,938 ------------ ------------ TOTAL POOLS 245,118,163 245,118,163 ------------ ------------ TOTAL INVESTMENT CONTRACTS 865,383,580 865,383,580 ------------ ------------
S-7 PHILIP MORRIS DEFERRED PROFIT-SHARING TRUST FUND SCHEDULE I - INVESTMENTS AS OF DECEMBER 31, 1994
COLUMN A COLUMN B COLUMN C COLUMN D -------- --------------- -------------- -------------- FACE AMOUNT COST OR NUMBER BASIS OF NAME OF ISSUER AND TITLE OF ISSUE OF SHARES/UNITS INVESTMENTS FAIR VALUE - --------------------------------- --------------- -------------- -------------- SHORT-TERM INVESTMENTS -- 0.60% GEBT Short-Term Investment Fund 13,432,391 $ 13,432,391 $ 13,432,391 -------------- -------------- TOTAL INTEREST INCOME FUND 878,815,971 878,815,971 -------------- -------------- U.S. GOVERNMENT OBLIGATIONS FUND -- 3.29% GOVERNMENT SECURITIES -- 2.53% United States Treasury Notes 4.125% due 5/31/95 30,000,000 29,800,000 29,723,400 United States Treasury Notes 4.125% due 6/30/95 10,000,000 10,046,875 9,882,800 United States Treasury Notes 4.00% due 1/31/96 7,500,000 7,461,621 7,241,025 United States Treasury Notes 6.00% due 6/30/96 10,000,000 9,990,625 9,784,400 -------------- -------------- TOTAL GOVERNMENT SECURITIES 57,299,121 56,631,625 -------------- -------------- FEDERAL AGENCY OBLIGATIONS -- 0.30% Federal Home Loan Mtg Corporation Multiclass Mtg Partn CTFS GTD SER 1304 CL 1304-F Var Rt 6/15/97 1,749,928 1,749,928 1,736,243 Student Loan Marketing Association Medium Term Note SER97 BB 8.29% 12/22/97 3,500,000 3,500,000 3,498,587 Federal Home Loan Mtg Corporation Multiclass Mtg Partn CTFS GTD SER 1296 CL 1296-I Var Rt 7/15/99 1,424,980 1,418,746 1,347,490 -------------- -------------- TOTAL FEDERAL AGENCY OBLIGATIONS 6,668,674 6,582,320 -------------- -------------- SHORT-TERM INVESTMENTS -- 0.46% GEBT Short-Term Investment Fund 10,325,806 10,325,806 10,325,806 -------------- -------------- TOTAL U.S. GOVERNMENT OBLIGATIONS FUND 74,293,601 73,539,751 -------------- -------------- PARTICIPANTS' LOAN ACCOUNT -- 4.60% Participants' Loans 102,894,433 102,894,433 102,894,433 -------------- -------------- TOTAL INVESTMENTS $2,038,109,538 $2,235,151,182 ============== ==============
S-8 EX-23 2 CONSENT OF INDEPENDENT ACCOUNTANTS EXHIBIT 23 CONSENT OF INDEPENDENT ACCOUNTANTS We consent to the incorporation by reference in the Philip Morris Companies Inc. registration statement on Form S-8 (File No. 33-40110) of the Philip Morris Incorporated Deferred Profit-Sharing Plan for Craft Employees of our report dated March 20, 1995, on our audits of the financial statements of the Philip Morris Incorporated Deferred Profit-Sharing Plan for Craft Employees as of December 31, 1994 and 1993 and for the years ended December 31, 1994, 1993 and 1992, and the financial statement schedule as of December 31, 1994, which report is included in this annual report on Form 11-K. COOPERS & LYBRAND L.L.P. New York, New York April 26, 1995 -----END PRIVACY-ENHANCED MESSAGE-----