-----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, S9lXxxD+yQkfJMTXsKfoJXgazTawLlJXQ2+x2FL4x4GjwvaiZZrrMPzgZwyJO7+Y hcmwFiROQrs6b6mbS1f45g== 0000928385-98-001301.txt : 19980629 0000928385-98-001301.hdr.sgml : 19980629 ACCESSION NUMBER: 0000928385-98-001301 CONFORMED SUBMISSION TYPE: 11-K/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980626 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: ROUSE COMPANY CENTRAL INDEX KEY: 0000085388 STANDARD INDUSTRIAL CLASSIFICATION: OPERATORS OF NONRESIDENTIAL BUILDINGS [6512] IRS NUMBER: 520735512 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K/A SEC ACT: SEC FILE NUMBER: 001-11543 FILM NUMBER: 98655172 BUSINESS ADDRESS: STREET 1: 10275 LITTLE PATUXENT PKWY CITY: COLUMBIA STATE: MD ZIP: 21044-3456 BUSINESS PHONE: 4109926000 MAIL ADDRESS: STREET 1: 10275 LITTLE PATUXENT PARKWAY CITY: COLUMBIA STATE: MD ZIP: 21044 FORMER COMPANY: FORMER CONFORMED NAME: COMMUNITY RESEARCH & DEVELOPMENT INC DATE OF NAME CHANGE: 19660913 11-K/A 1 ANNUAL REPORT FOR THE ROUSE COMPANY SAVINGS PLAN UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 11-K/A [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the fiscal year ended December 31, 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 0-1743 ------ A. Full title of the plan and address of the plan: The Rouse Company Savings Plan c/o Personnel Division The Rouse Company Building 10275 Little Patuxent Parkway Columbia, Maryland 21044 B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive offices: The Rouse Company The Rouse Company Building 10275 Little Patuxent Parkway Columbia, Maryland 21044 THE ROUSE COMPANY SAVINGS PLAN FINANCIAL STATEMENTS DECEMBER 31, 1997 AND 1996 (WITH INDEPENDENT AUDITORS' REPORT THEREON) THE ROUSE COMPANY SAVINGS PLAN December 31, 1997 and 1996 Index ----- Independent Auditors' Report 1 Statements of Net Assets Available for Plan Benefits - December 31, 1997 and 1996 2 Statements of Changes in Net Assets Available for Plan Benefits - Years ended December 31, 1997 and 1996 3 Notes to Financial Statements - December 31, 1997 and 1996 5 Item 27a - Schedule of Assets Held for Investment Purposes - December 31, 1997 10 Item 27d - Schedule of Reportable Transactions - Year ended December 31, 1997 11 * * * * * * * The other schedules required by Item 27 of Department of Labor Form 5500 are inapplicable and are therefore omitted. Independent Auditors' Report ---------------------------- The Trustee The Rouse Company Savings Plan: We have audited the accompanying statements of net assets available for plan benefits of The Rouse Company Savings Plan as of December 31, 1997 and 1996 and the related statements of changes in net assets available for plan benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of The Rouse Company Savings Plan as of December 31, 1997 and 1996, and the changes in net assets available for plan benefits for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of assets held for investment purposes and reportable transactions are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The fund information in the statements of net assets available for plan benefits and the statements of changes in net assets available for plan benefits is presented for purposes of additional analysis rather than to present the net assets available for plan benefits and the changes in net assets available for plan benefits of each fund. The supplemental schedules and fund information have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. June 12, 1998 THE ROUSE COMPANY SAVINGS PLAN Statements of Net Assets Available for Plan Benefits December 31, 1997 and 1996
The Rouse Company T. Rowe Price --------------------------- ------------------------------------------------------------------------- Quarterly Income Ariel Blended Equity International Common Preferred Growth Balanced Stable Index Stock Stock Securities Fund Fund Value Fund Fund Fund ------------ ------------ ------------ ------------ ------------ ------------ ------------- 1997 Investments $ 26,829,506 626,521 411,620 2,405,026 1,583,269 4,035,131 3,871,934 Contributions receivable from: The Rouse Company 22,373 396 53 104 -- 323 30 Participants 7,311 72 776 2,431 -- 4,693 4,835 ------------ ------------ ------------ ------------ ------------ ------------ ------------ 29,684 468 829 2,535 -- 5,016 4,865 ------------ ------------ ------------ ------------ ------------ ------------ ------------ Net assets available for plan benefits $ 26,859,190 626,989 412,449 2,407,561 1,583,269 4,040,147 3,876,799 ============ ============ ============ ============ ============ ============ ============ 1996 Investments $ 28,128,526 229,725 40,047 1,986,558 -- 1,793,360 3,369,007 Contributions receivable from: The Rouse Company 128,032 -- -- -- -- -- -- Participants 41,301 3,429 2,402 11,398 -- 39,964 33,083 ------------ ------------ ------------ ------------ ------------ ------------ ------------ 169,333 3,429 2,402 11,398 -- 39,964 33,083 ------------ ------------ ------------ ------------ ------------ ------------ ------------ Net assets available for plan benefits $ 28,297,859 233,154 42,449 1,997,956 -- 1,833,324 3,402,090 ============ ============ ============ ============ ============ ============ ============ T. Rowe Price --------------------------------------------------------------------------------------- New America New Prime Small Spectrum Spectrum Growth Horizons Reserve Cap Value Income Growth Insurance Fund Fund Fund Fund Fund Fund Contracts ------------ ------------ ------------ ------------ ------------ ------------ ------------- 1997 Investments 5,518,203 6,961,821 4,004,373 3,363,952 1,994,570 5,648,184 5,789,962 Contributions receivable from: The Rouse Company 104 124 154 327 47 36 28 Participants 6,537 9,942 4,184 4,366 1,912 5,745 6,119 ------------ ------------ ------------ ------------ ------------ ------------ ------------ 6,641 10,066 4,338 4,693 1,959 5,781 6,147 ------------ ------------ ------------ ------------ ------------ ------------ ------------ Net assets available for plan benefits 5,524,844 6,971,887 4,008,711 3,368,645 1,996,529 5,653,965 5,796,109 ============ ============ ============ ============ ============ ============ ============ 1996 Investments 4,526,321 5,963,594 3,517,125 1,693,924 1,617,123 4,648,534 7,213,858 Contributions receivable from: The Rouse Company -- -- -- -- -- -- -- Participants 56,783 80,509 22,053 23,457 14,212 52,765 45,862 ------------ ------------ ------------ ------------ ------------ ------------ ------------ 56,783 80,509 22,053 23,457 14,212 52,765 45,862 ------------ ------------ ------------ ------------ ------------ ------------ ------------ Net assets available for plan benefits 4,583,104 6,044,103 3,539,178 1,717,381 1,631,335 4,701,299 7,259,720 ============ ============ ============ ============ ============ ============ ============ Participant Loans Total ------------ ------------ 1997 Investments 3,195,490 76,239,562 Contributions receivable from: The Rouse Company -- 24,099 Participants -- 58,923 ------------ ------------ -- 83,022 ------------ ------------ Net assets available for plan benefits 3,195,490 76,322,584 ============ ============ 1996 Investments 2,656,661 67,384,363 Contributions receivable from: The Rouse Company -- 128,032 Participants -- 427,218 ------------ ------------ -- 555,250 ------------ ------------ Net assets available for plan benefits 2,656,661 67,939,613 ============ ============
See accompanying notes to financial statements. 2 THE ROUSE COMPANY SAVINGS PLAN Statements of Changes in Net Assets Available for Plan Benefits Years ended December 31, 1997 and 1996
The Rouse Company T. Rowe Price --------------------------- ------------------------------------------------------------------------- Quarterly Income Ariel Blended Equity International Common Preferred Growth Balanced Stable Index Stock 1997 Stock Securities Fund Fund Value Fund Fund Fund - ---- ------------ ------------ ------------ ------------ ------------ ------------ ------------- Contributions from The Rouse Company 1,604,614 28,105 1,841 2,691 -- 6,569 2,052 Contributions from participants 638,497 29,798 56,388 186,670 -- 518,852 482,174 Investment income: Dividends and interest 816,108 49,608 34,989 93,644 -- 78,694 204,968 Net appreciation (depreciation) in fair values of investments 650,840 13,940 37,292 296,995 -- 731,010 (124,650) Interest on participant loans -- -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total investment income 1,466,948 63,548 72,281 390,639 -- 809,704 80,318 ------------ ------------ ------------ ------------ ------------ ------------ ------------ Distributions to participants (2,058,517) (4,084) (20,464) (264,740) -- (263,875) (208,724) Participant loans repaid as part of termination distributions -- -- -- -- -- -- -- Interprogram transfers, net (3,090,211) 276,468 259,954 94,345 1,583,269 1,135,573 118,889 ------------ ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets available for plan benefits (1,438,669) 393,835 370,000 409,605 1,583,269 2,206,823 474,709 Net assets available for plan benefits: Beginning of year 28,297,859 233,154 42,449 1,997,956 -- 1,833,324 3,402,090 ------------ ------------ ------------ ------------ ------------ ------------ ------------ End of year $ 26,859,190 626,989 412,449 2,407,561 1,583,269 4,040,147 3,876,799 ============ ============ ============ ============ ============ ============ ============ T. Rowe Price --------------------------------------------------------------------------------------- New America New Prime Small Spectrum Spectrum Growth Horizons Reserve Cap Value Income Growth Insurance Fund Fund Fund Fund Fund Fund Contracts ------------ ------------ ------------ ------------ ------------ ------------ ------------- Contributions from The Rouse Company 1,898 3,247 1,450 4,995 894 1,345 931 Contributions from participants 684,223 896,601 373,729 419,922 217,554 568,970 569,406 Investment income: Dividends and interest 260,477 168,457 196,963 212,445 134,990 570,468 429,016 Net appreciation (depreciation) in fair values of investments 662,976 454,870 -- 406,016 69,251 233,453 -- Interest on participant loans -- -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total investment income 923,453 623,327 196,963 618,461 204,241 803,921 429,016 ------------ ------------ ------------ ------------ ------------ ------------ ------------ Distributions to participants (277,128) (602,441) (428,173) (64,141) (153,840) (261,984) (923,557) Participant loans repaid as part of termination distributions -- -- -- -- -- -- -- Interprogram transfers, net (390,706) 7,050 325,564 672,027 96,345 (159,586) (1,539,407) ------------ ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets available for plan benefits 941,740 927,784 469,533 1,651,264 365,194 952,666 (1,463,611) Net assets available for plan benefits: Beginning of year 4,583,104 6,044,103 3,539,178 1,717,381 1,631,335 4,701,299 7,259,720 ------------ ------------ ------------ ------------ ------------ ------------ ------------ End of year 5,524,844 6,971,887 4,008,711 3,368,645 1,996,529 5,653,965 5,796,109 ============ ============ ============ ============ ============ ============ ============ Participant Loans Total ------------ ------------ Contributions from The Rouse Company -- 1,660,632 Contributions from participants -- 5,642,784 Investment income: Dividends and interest -- 3,250,827 Net appreciation (depreciation) in fair values of investments -- 3,431,993 Interest on participant loans 224,589 224,589 ------------ ------------ Total investment income 224,589 6,907,409 ------------ ------------ Distributions to participants -- (5,531,668) Participant loans repaid as part of termination distributions (296,186) (296,186) Interprogram transfers, net 610,426 -- ------------ ------------ Increase (decrease) in net assets available for plan benefits 538,829 8,382,971 Net assets available for plan benefits: Beginning of year 2,656,661 67,939,613 ------------ ------------ End of year 3,195,490 76,322,584 ============ ============ (continued)
See accompanying notes to financial statements. 3 THE ROUSE COMPANY SAVINGS PLAN Statements of Changes in Net Assets Available for Plan Benefits Years ended December 31, 1997 and 1996
The Rouse Company T. Rowe Price ------------------------------------------ ---------------------------------------------------------- Quarterly Convertible Income Ariel Equity International Common Preferred Preferred Growth Balanced Index Stock 1996 Stock Stock Securities Fund Fund Fund Fund - ---- ------------ ------------ ------------ ------------ ------------ ------------ ------------- Contributions from The Rouse Company $ 1,401,791 221,447 2,392 -- -- -- -- Contributions from participants 544,114 117,603 5,393 24,691 150,584 303,148 415,488 Conversions in from acquisiton of The Hughes Corporation (note 2) -- -- -- -- 1,271,004 -- 695,567 Investment income: Dividends and interest 744,888 91,098 5,304 2,113 47,738 56,967 89,575 Net appreciation (depreciation) in fair values of investments 10,130,241 (64,477) (2,064) 4,131 82,104 237,920 281,639 Interest on participant loans -- -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total investment income 10,875,129 26,621 3,240 6,244 129,842 294,887 371,214 ------------ ------------ ------------ ------------ ------------ ------------ ------------ Distributions to participants (2,248,936) (142,137) -- (1,556) (53,972) (232,808) (271,688) Participant loans repaid as part of termination distributions -- -- -- -- -- -- -- Interprogram transfers, net 170,996 (1,579,617) 222,129 13,070 (7,877) 275,426 168,095 ------------ ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets available for plan benefits 10,743,094 (1,356,083) 233,154 42,449 1,489,581 640,653 1,378,676 Net assets available for plan benefits: Beginning of year 17,554,765 1,356,083 -- -- 508,375 1,192,671 2,023,414 ------------ ------------ ------------ ------------ ------------ ------------ ------------ End of year $ 28,297,859 -- 233,154 42,449 1,997,956 1,833,324 3,402,090 ============ ============ ============ ============ ============ ============ ============ T. Rowe Price --------------------------------------------------------------------------------------- New America New Prime Small Spectrum Spectrum Growth Horizons Reserve Cap Value Income Growth Insurance Fund Fund Fund Fund Fund Fund Contracts ------------ ------------ ------------ ------------ ------------ ------------ ------------- Contributions from The Rouse Company -- -- -- -- -- -- -- Contributions from participants 485,725 837,975 208,044 255,184 196,936 468,703 653,572 Conversions in from acquisiton of The Hughes Corporation (note 2) 2,652,254 -- 1,830,162 -- 142,197 1,429,921 -- Investment income: Dividends and interest 377,059 550,334 99,332 84,100 114,588 323,063 440,290 Net appreciation (depreciation) in fair values of investments (56,716) 297,169 -- 208,845 (4,928) 242,991 -- Interest on participant loans -- -- -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total investment income 320,343 847,503 99,332 292,945 109,660 566,054 440,290 ------------ ------------ ------------ ------------ ------------ ------------ ------------ Distributions to participants (157,683) (797,842) (540,291) (172,155) (119,241) (256,505) (1,772,318) Participant loans repaid as part of termination distributions -- -- -- -- -- -- -- Interprogram transfers, net 80,368 241,349 86,619 359,440 (150,773) 253,738 (538,602) ------------ ------------ ------------ ------------ ------------ ------------ ------------ Increase (decrease) in net assets available for plan benefits 3,381,007 1,128,985 1,683,866 735,414 178,779 2,461,911 (1,217,058) Net assets available for plan benefits: Beginning of year 1,202,097 4,915,118 1,855,312 981,967 1,452,556 2,239,388 8,476,778 ------------ ------------ ------------ ------------ ------------ ------------ ------------ End of year 4,583,104 6,044,103 3,539,178 1,717,381 1,631,335 4,701,299 7,259,720 ============ ============ ============ ============ ============ ============ ============ Participant Loans Total ------------ ------------ Contributions from The Rouse Company -- 1,625,630 Contributions from participants -- 4,667,160 Conversions in from acquisiton of The Hughes Corporation (note 2) 79,394 8,100,499 Investment income: Dividends and interest -- 3,026,449 Net appreciation (depreciation) in fair values of investments -- 11,356,855 Interest on participant loans 168,017 168,017 ------------ ------------ Total investment income 168,017 14,551,321 ------------ ------------ Distributions to participants -- (6,767,132) Participant loans repaid as part of termination distributions (247,904) (247,904) Interprogram transfers, net 405,639 -- ------------ ------------ Increase (decrease) in net assets available for plan benefits 405,146 21,929,574 Net assets available for plan benefits: Beginning of year 2,251,515 46,010,039 ------------ ------------ End of year 2,656,661 67,939,613 ============ ============
See accompanying notes to financial statements. 4 THE ROUSE COMPANY SAVINGS PLAN Notes to Financial Statements December 31, 1997 and 1996 (1) Summary of Significant Accounting Policies ------------------------------------------ (a) Basis of presentation --------------------- The financial statements of The Rouse Company Savings Plan (the Plan) have been prepared on the accrual basis and present the net assets available for benefits and the changes in those net assets. (b) Investments ----------- Investments in the common stock and quarterly income preferred securities of The Rouse Company and the T. Rowe Price and other mutual funds are carried at fair values determined by quoted market prices. Investments in the insurance contracts are carried at contract value (representing contributions made plus interest credited less distributions) as the insurance contracts held by the Plan are "fully benefit-responsive," as defined in Statement of Position 94-4, Reporting of Investment Contracts Held by Health and Welfare Benefit Plans and Defined-Contribution Pension Plans. Loans to participants are carried at cost, which approximates fair value. Security transactions are recognized on a trade date basis. Unrealized appreciation and depreciation in the fair values of investments are recognized in the periods in which the changes occur. (c) Administrative expenses ----------------------- The Rouse Company pays all administrative expenses incurred on behalf of the Plan. Terminated participants who have left their account balances in the Plan are required to reimburse the Company for administrative expenses relating to their accounts. Participants requesting loans from the Plan are required to pay an administrative fee to the Company for the processing of such loans. (d) Use of estimates ---------------- The preparation of financial statements in conformity with generally accepted accounting principles requires the Plan's management to make estimates and judgments that affect the reported amounts of net assets and disclosures of contingencies at the date of the financial statements and changes in net assets recognized during the reporting period. Actual results could differ from those estimates. The following brief description of the Plan summarizes the principal provisions of the Plan and is provided for general information purposes only. Participants should refer to the Plan agreement for more complete information. 5 THE ROUSE COMPANY SAVINGS PLAN ------------------------------ Notes to Financial Statements (2) General Description of the Plan ------------------------------- The Plan was established effective June 1, 1983 to provide employees of The Rouse Company and certain of its subsidiaries and affiliates (the Company) an incentive to save for retirement and for financial emergencies. Generally, employees who are not covered under a collective bargaining agreement, who are at least 21 years of age and who have completed 1,000 hours of service in one year are eligible to participate in the Plan. On June 12, 1996, the Company acquired all of the outstanding equity interests in The Hughes Corporation and its affiliated partnership, Howard Hughes Properties, Limited Partnership (together, Hughes). Under the merger agreement, participants in the Hughes 401(k) Savings Plan (Hughes employees) became eligible to participate in the Plan as of the closing date, subject to the terms of the Plan. Accordingly, account balances of Hughes employees who elected to participate in the Plan were transferred from the Hughes 401(k) Savings Plan to the Plan in 1996 and were allocated among the various investment programs based on the similarity of investment objectives. The merger agreement also provides that the Company will consider participants' service with Hughes prior to the closing date for eligibility and vesting purposes. Basic contributions to the Plan are made pursuant to salary reduction agreements between the Company and participants. Participants may elect to reduce their compensation, as defined in the Plan, by amounts ranging from 1% to 19% of such compensation, subject to an annual limitation. Employees may also make supplemental contributions to the Plan in amounts up to 9% of compensation, as defined. The supplemental contributions are not pursuant to salary reduction agreements. Aggregate basic and supplemental contributions may not exceed 19% of compensation, as defined. Participants are able to defer payment of income taxes on their basic contributions to the Plan, related contributions by the Company and all income realized on accounts maintained under the Plan. Participants' contributions to the Plan are allocated among the various investment programs based on their instructions, subject to certain limitations defined in the Plan. Participants may change their allocation instructions and transfer accumulated savings between funds on a monthly basis, subject to certain limitations defined in the Plan. Matching contributions are made by the Company to each participant's account in an amount equal to $1.00 for every $2.00 of a participant's basic contribution up to 6% of such participant's base salary. Until December 31, 1996, the Company's matching contributions were invested in the Company's common stock, convertible preferred stock or quarterly income preferred securities based on participants' instructions. Effective January 1, 1997 participants may direct the Company's matching contributions to any of the investment vehicles offered under the Plan. In addition, the Company may make additional contributions to the Plan under certain circumstances. Such additional contributions are 6 THE ROUSE COMPANY SAVINGS PLAN ------------------------------ Notes to Financial Statements (2) General Description of the Plan, Continued ------------------------------------------ distributed to accounts of participants pursuant to guidelines set forth in the Plan. Participants who joined the Plan prior to January 1, 1989 obtain an immediate and fully vested interest in all contributions made by the Company. Participants who joined the Plan on or after January 1, 1989 are required to complete two years of service, as defined in the Plan, to become fully vested in the Company's contributions. Forfeitures of nonvested Company contributions may be used by the Company to satisfy future matching contribution requirements. Participants or their beneficiaries are eligible for distributions upon retirement, disability, termination of employment or death of the participant. In addition, participants may make withdrawals from their accounts upon attainment of age 59-1/2. Participants may also make withdrawals of their basic contributions by reason of financial hardship, under specific guidelines set forth in the Plan. Subject to certain limitations, supplemental contributions may be withdrawn by participants for any reason. Generally, participants may borrow from the Plan up to the lesser of $50,000 or 50% of their vested account balances. Interest on such borrowings and repayment schedules are determined pursuant to guidelines in the Plan. Generally, borrowings bear interest at the prime rate of a designated commercial bank at the time of the loan application and must be repaid to the Plan over a period not to exceed five years. While the Company has not expressed any intent to terminate the Plan, it is free to do so at any time. In the event of termination of the Plan, the Plan's assets would be distributed to the participants in accordance with the Plan agreement. 7 THE ROUSE COMPANY SAVINGS PLAN ------------------------------ Notes to Financial Statements (3) Investments ----------- Information relating to investments, including individual investments which represent 5% or more of net assets available for plan benefits, is summarized as follows at December 31:
1997 1996 ------------------------- ------------------------- Contract Contract Number of or fair Number of or fair shares value shares value --------- -------------- --------- -------------- The Rouse Company: Common stock 819,251 $ 26,829,506 882,598 $ 28,128,526 Quarterly income preferred securities 23,924 626,521 9,053 229,725 T. Rowe Price and other Mutual Funds: Equity Index Fund 152,962 4,035,131 88,169 1,793,360 International Stock Fund 288,520 3,871,934 244,131 3,369,007 New America Growth Fund 124,874 5,518,203 117,965 4,526,321 New Horizons Fund 298,791 6,961,821 273,936 5,963,594 Prime Reserve Fund 4,004,373 4,004,373 3,517,125 3,517,125 Spectrum Growth Fund 354,563 5,648,184 307,239 4,648,534 --------- --------- Other 9,758,437 5,337,652 -------------- -------------- 39,798,083 29,155,593 -------------- -------------- Insurance contracts 5,789,962 7,213,858 Participant loans 3,195,490 2,656,661 -------------- -------------- $ 76,239,562 $ 67,384,363 ============== ==============
The investments in insurance contracts consist of guaranteed income contracts offered by various insurance companies. The Plan deals only with highly rated insurance companies and does not expect that any of them will fail to meet their obligations under the contracts. The contracts in effect at December 31, 1997, provide for interest at rates ranging from 4.93% to 7.40% and mature at various dates to 2001. The average yield on the contracts was 6.14% in 1997 and 6.22% in 1996. The aggregate contract value of the contracts in effect at December 31, 1997 approximates their aggregate estimated fair value based on current market interest rates for contracts with similar maturities and credit quality. 8 THE ROUSE COMPANY SAVINGS PLAN ------------------------------ Notes to Financial Statements (4) Federal Income Tax Status ------------------------- The Internal Revenue Service has determined and informed the Company by a letter dated August 11, 1995 that the Plan and related trust are designed in accordance with applicable sections of the Internal Revenue Code (IRC) and, accordingly, are tax-exempt. The Plan's management believes that the Plan continues to qualify and to operate in accordance with applicable provisions of the IRC. (5) Reconciliation to Form 5500 --------------------------- Amounts due to terminated participants for benefits payable of $125,113 at December 31, 1997 and $86,374 at December 31, 1996 are reported as liabilities in the Plan's Annual Report on Department of Labor Form 5500, but are included in net assets available for plan benefits in the financial statements. 9 THE ROUSE COMPANY SAVINGS PLAN Item 27a - Schedule of Assets Held for Investment Purposes December 31, 1997
Par value or number of Current Name of issuer and title of issue shares Cost (note 1) value - --------------------------------- ------------ ------------- ---------- The Rouse Company: Common stock 819,251 $17,166,862 26,829,506 Quarterly income preferred securities 23,924 616,464 626,521 Ariel Growth Fund 10,321 373,746 411,620 T. Rowe Price Funds: Balanced Fund 145,407 2,051,551 2,405,026 Blended Stable Value Fund 1,583,269 1,583,269 1,583,269 Equity Index Fund 152,962 3,006,430 4,035,131 International Stock Fund 288,520 3,714,022 3,871,934 New America Growth Fund 124,874 4,782,469 5,518,203 New Horizons Fund 298,791 5,649,522 6,961,821 Prime Reserve Fund 4,004,373 4,004,373 4,004,373 Small Cap Value Fund 143,759 2,724,137 3,363,952 Spectrum Income Fund 171,061 1,897,319 1,994,570 Spectrum Growth Fund 354,563 5,044,321 5,648,184 ============ Insurance Contracts: Principal Mutual Life Insurance Company 842,316 842,316 Hartford Life Insurance Company 1,097,601 1,097,601 John Hancock Mutual Life Insurance Company 1,119,619 1,119,619 Life of Georgia Life Insurance Company 978,703 978,703 American International Group Life Insurance Company 1,751,723 1,751,723 Participant loans 3,195,490 3,195,490 ----------- ---------- Total investments $61,599,937 76,239,562 =========== ==========
Notes: (1) Cost of the securities of The Rouse Company and the T. Rowe Price and other mutual funds includes reinvested dividends or interest credited, as applicable. Cost of the insurance contracts is equal to contract value, representing contributions made plus interest credited less distributions. (2) T. Rowe Price Retirement Plan Services, Inc. and The Rouse Company represent parties in interest. 10 THE ROUSE COMPANY SAVINGS PLAN Item 27d - Schedule of Reportable Transactions (Note 1) Year ended December 31, 1997
Current value of Redemption asset on Purchase or selling Cost of transaction Net gain Description of assets price price asset dates (loss) - --------------------- ------------ ------------ ------------ ------------ ------------ The Rouse Company - common stock $ 3,852,221 --- --- 3,852,221 --- The Rouse Company - common stock --- 5,802,081 4,016,031 5,802,081 1,786,050
Notes: (1) Reportable transactions are presented in accordance with Department of Labor regulations relating to requirements for employee benefit plan annual reports filed under the Employee Retirement Income Security Act of 1974. (2) The purchases and sales represent series of transactions; however, it is not practical to determine the number of individual transactions involved. (3) The Rouse Company is a party in interest. 11 Signatures ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the Plan) have duly caused this amendment to be signed on its behalf by the undersigned, thereunto duly authorized. THE ROUSE COMPANY SAVINGS PLAN Date: June 26, 1998 By /s/ WILLIAM D. BODEN -------------------- William D. Boden Administrator and Date: June 26, 1998 By /s/ GEORGE L. YUNGMANN ---------------------- George L. Yungmann Trustee 12 EX-23.1 2 CONSENT OF KPMG PEAT MARWICK Consent of Independent Certified Public Accountants --------------------------------------------------- The Board of Directors The Rouse Company: We consent to the incorporation by reference in the Registration Statement (No. 2-83612) on Form S-8 of The Rouse Company of our report dated June 12, 1998, relating to the statements of net assets available for plan benefits of The Rouse Company Savings Plan as of December 31, 1997 and 1996, the related statements of changes in net assets available for plan benefits for the years then ended and the related schedules for the year ended December 31, 1997, which report appears elsewhere in this Form 11-K/A. /s/ KPMG Peat Marwick LLP KPMG PEAT MARWICK LLP Baltimore, Maryland June 26, 1998 -----END PRIVACY-ENHANCED MESSAGE-----