-----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, O0jCaLZMY7FQm8XLRkO6WZRPWic8Lh/t+IcsjvPINOc4yiP709ZdmbHOmMCVVhyr 8pkOL5BWAzTxcEOTvdzATw== 0000950152-98-005617.txt : 19980629 0000950152-98-005617.hdr.sgml : 19980629 ACCESSION NUMBER: 0000950152-98-005617 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980626 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: RUBBERMAID INC CENTRAL INDEX KEY: 0000085627 STANDARD INDUSTRIAL CLASSIFICATION: PLASTICS PRODUCTS, NEC [3089] IRS NUMBER: 340628700 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 001-04188 FILM NUMBER: 98655207 BUSINESS ADDRESS: STREET 1: 1147 AKRON RD CITY: WOOSTER STATE: OH ZIP: 44691-6000 BUSINESS PHONE: 2162646464 MAIL ADDRESS: STREET 1: 1147 AKRON RD CITY: WOOSTER STATE: OH ZIP: 44691-6000 11-K 1 RUBBERMAID RETIREMENT PLAN 11-K 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ----------------------------------------------------------- FORM 11-K ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TWELVE-MONTH PERIOD ENDED DECEMBER 31, 1997 ----------------------------------------------------------- For the twelve-month period ended December 31, 1997. Commission file number: 1-4188 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: RUBBERMAID RETIREMENT PLAN B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: Rubbermaid Incorporated 1147 Akron Road Wooster, Ohio 44691-6000 2 Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Plan has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. RUBBERMAID RETIREMENT PLAN Dated: June 26, 1998 /s/ William R. Connor ------------------------- William R. Connor 3 [KPMG Peat Marwick LLP Letterhead] INDEPENDENT AUDITORS' CONSENT ----------------------------- The Board of Directors Rubbermaid Incorporated: We consent to incorporation by reference in the registration statement (No. 33-61817) on Form S-8 of Rubbermaid Incorporated of our report dated June 17, 1998, relating to the statements of assets available for benefits of the Rubbermaid Retirement Plan as of December 31, 1997 and 1996, and the related statement of changes in assets available for benefits for the year ended December 31, 1997, which report appears in the December 31, 1997 annual report on Form 11-K of Rubbermaid Incorporated. KPMG Peat Marwick LLP /s/ KPMG Peat Marwick LLP Cleveland, Ohio June 23, 1998 4 [KPMG LOGO] RUBBERMAID RETIREMENT PLAN Financial Statements December 31, 1997 and 1996 (With Independent Auditors' Report Thereon) 5 RUBBERMAID RETIREMENT PLAN Table of Contents ----------------- Independent Auditors' Report Financial Statements: Statements of Assets Available for Benefits, with Fund Information - December 31, 1997 and 1996 Statement of Changes in Assets Available for Benefits, with Fund Information - Year ended December 31, 1997 Notes to Financial Statements 6 [KPMG Peat Marwick LLP Letterhead] INDEPENDENT AUDITORS' REPORT ---------------------------- Plan Administrator of Rubbermaid Retirement Plan: We have audited the accompanying statements of assets available for benefits of the Rubbermaid Retirement Plan (Plan) as of December 31, 1997 and 1996, and the related statement of changes in assets available for benefits for the year ended December 31, 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 assets available for benefits of the Plan as of December 31, 1997 and 1996, and the changes in assets available for benefits for the year ended December 31, 1997, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements of the Plan taken as a whole. The Fund Information in the statements of assets available for benefits and the statement of changes in assets available for benefits is presented for purposes of additional analysis rather than to present the assets available for benefits and changes in assets available for benefits of each fund. The supplemental 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. /s/ KPMG PEAT MARWICK LLP Cleveland, Ohio June 17, 1998 7 RUBBERMAID RETIREMENT PLAN Statement of Assets Available for Benefits, with Fund Information December 31, 1997
Participant-Directed ------------------------------------------------------------ Spartan Stable U.S. Equity Fidelity Fidelity Value Index Puritan Magellan Fund Fund Fund Fund ----------- ---------- ---------- ---------- Assets: Investments, at fair value: Plan interest in investments of the Rubbermaid Master Trust $ 148,481,717 59,293,717 14,268,109 17,010,292 ----------- ---------- ---------- ---------- Total investments 148,481,717 59,293,717 14,268,109 17,010,292 Receivables: Employer contribution - - - - Participant contributions - - - - ----------- ---------- ---------- ---------- Assets available for benefits $ 148,481,717 59,293,717 14,268,109 17,010,292 =========== ========== ========== ==========
See accompanying notes to financial statements. 8
Participant-Directed - ----------------------------------------------------------------------------------------------- Fidelity Fidelity Rubbermaid Small Cap Diversified Unitized Fidelity Selector International Stock Loan Combined Contrafund Fund Fund Fund Fund Other Funds ---------- --------- --------- --------- --------- --------- ----------- 18,606,829 7,726,226 6,561,443 8,227,600 7,650,103 - 287,826,036 ---------- --------- --------- --------- --------- --------- ----------- 18,606,829 7,726,226 6,561,443 8,227,600 7,650,103 - 287,826,036 - - - - - 7,033,693 7,033,693 - - - - - 1,526,337 1,526,337 ---------- --------- --------- --------- --------- --------- ----------- 18,606,829 7,726,226 6,561,443 8,227,600 7,650,103 8,560,030 296,386,066 ========== ========= ========= ========= ========= ========= ===========
9 RUBBERMAID RETIREMENT PLAN Statement of Assets Available for Benefits, with Fund Information December 31, 1996
Participant-Directed ------------------------------------------------------------- Spartan Stable U.S. Equity Fidelity Fidelity Value Index Puritan Magellan Fund Fund Fund Fund --------------- ---------- ------ ------- Assets: Investments, at fair value: Investments in registered investment companies $ - 53,449,132 70,897 103,759 Plan interest in investments of the Rubbermaid Master Trust 205,516,576 - - - Participant loans receivable - - - - --------------- ---------- ------ ------- Total investments 205,516,576 53,449,132 70,897 103,759 Receivables: Employer contribution - - - - Participant contributions - - - - --------------- ---------- ------ ------- Assets available for benefits $ 205,516,576 53,449,132 70,897 103,759 =============== ========== ====== =======
See accompanying notes to financial statements. 10
Participant-Directed - ----------------------------------------------------------------------------------------------- Fidelity Fidelity Rubbermaid Small Cap Diversified Unitized Fidelity Selector International Stock Loan Combined Contrafund Fund Fund Fund Fund Other Funds ---------- -------- -------- --------- --------- --------- ----------- 104,393 37,015 49,467 3,452,621 - - 57,267,284 - - - - - - 205,516,576 - - - - 7,600,314 - 7,600,314 ------- ------ ------ --------- --------- --------- ----------- 104,393 37,015 49,467 3,452,621 7,600,314 - 270,384,174 - - - - - 5,700,097 5,700,097 - - - - - 2,468,839 2,468,839 ------- ------ ------ --------- --------- --------- ----------- 104,393 37,015 49,467 3,452,621 7,600,314 8,168,936 278,553,110 ======= ====== ====== ========= ========= ========= ===========
11 RUBBERMAID RETIREMENT PLAN Statement of Changes in Assets Available for Benefits, with Fund Information Year ended December 31, 1997
Participant-Directed ----------------------------------------------------------------- Spartan Stable U.S. Equity Fidelity Fidelity Value Index Puritan Magellan Fund Fund Fund Fund ----------------------------------------------------------------- Additions to assets attributed to: Excess of net proceeds over market value at beginning of year: Aggregate proceeds $ 239,656,995 45,913,153 5,013,649 3,845,566 Aggregate cost 235,605,622 41,313,514 4,757,880 3,711,474 --------------- ---------- ---------- ---------- Net excess 4,051,373 4,599,639 255,769 134,092 Net change in unrealized appreci- ation of securities - 9,404,684 1,002,476 1,505,328 Dividends 2,693,978 1,342,870 1,160,190 1,030,862 Interest 3,585,384 138,913 36,800 53,482 Loan repayments 1,213,138 618,658 142,438 227,939 --------------- ---------- ---------- ---------- 11,543,873 16,104,764 2,597,673 2,951,703 Contributions: Employer contribution 3,219,670 1,601,648 469,879 654,662 Participant contributions 2,339,806 1,735,316 650,676 924,323 --------------- ---------- ---------- ---------- 5,559,476 3,336,964 1,120,555 1,578,985 --------------- ---------- ---------- ---------- Total additions 17,103,349 19,441,728 3,718,228 4,530,688 --------------- ---------- ---------- ---------- Deductions from assets attributed to: Benefits paid to participants 25,589,973 5,105,479 691,964 1,098,184 Loan disbursements 2,602,037 899,363 158,468 267,115 Miscellaneous 477,444 57,125 9,292 7,016 --------------- ---------- ---------- ---------- Total deductions 28,669,454 6,061,967 859,724 1,372,315 --------------- ---------- ---------- ---------- Net increase (decrease) prior to transfers (11,566,105) 13,379,761 2,858,504 3,158,373 Net transfers (to) from other plans (614,601) (841,453) (258,531) (256,909) Interfund transfers (44,854,153) (6,693,723) 11,597,239 14,005,069 --------------- ---------- ---------- ---------- Net increase (decrease) (57,034,859) 5,844,585 14,197,212 16,906,533 Assets available for benefits: Beginning of year 205,516,576 53,449,132 70,897 103,759 --------------- ---------- ---------- ---------- End of year $ 148,481,717 59,293,717 14,268,109 17,010,292 =============== ========== ========== ==========
See accompanying notes to financial statements. 12
Participant-Directed - ----------------------------------------------------------------------------------------------- Fidelity Fidelity Rubbermaid Small Cap Diversified Unitized Fidelity Selector International Stock Loan Combined Contrafund Fund Fund Fund Fund Other Funds ---------- --------- --------- --------- --------- --------- ----------- 4,552,329 2,137,603 3,037,942 4,824,896 - - 308,982,133 4,414,695 2,097,937 2,837,889 3,969,251 - - 298,708,262 ---------- --------- --------- --------- --------- --------- ----------- 137,634 39,666 200,053 855,645 - - 10,273,871 848,149 627,018 322,633 4,325,145 - - 18,035,433 1,785,024 543,120 238,924 (3,356) - - 8,791,612 43,517 16,100 21,526 9,320 - - 3,905,042 184,218 69,220 93,996 43,086 (2,592,693) - - ---------- --------- --------- --------- --------- --------- ----------- 2,998,542 1,295,124 877,132 5,229,840 (2,592,693) - 41,005,958 653,268 246,520 350,574 180,566 - 1,333,596 8,710,383 998,929 360,440 479,472 213,044 - (942,502) 6,759,504 ---------- --------- --------- --------- --------- --------- ----------- 1,652,197 606,960 830,046 393,610 - 391,094 15,469,887 ---------- --------- --------- --------- --------- --------- ----------- 4,650,739 1,902,084 1,707,178 5,623,450 (2,592,693) 391,094 56,475,845 ---------- --------- --------- --------- --------- --------- ----------- 839,366 384,323 508,016 592,539 1,263,199 - 36,073,043 268,431 62,302 108,011 79,047 (4,444,774) - - 6,948 5,540 2,326 6,893 498,565 - 1,071,149 ---------- --------- --------- --------- --------- --------- ----------- 1,114,745 452,165 618,353 678,479 (2,683,010) - 37,144,192 ---------- --------- --------- --------- --------- --------- ----------- 3,535,994 1,449,919 1,088,825 4,944,971 90,317 391,094 19,331,653 (342,777) (125,592) (171,555) 1,153,249 (40,528) - (1,498,697) 15,309,219 6,364,884 5,594,706 (1,323,241) - - - ---------- --------- --------- --------- --------- --------- ----------- 18,502,436 7,689,211 6,511,976 4,774,979 49,789 391,094 17,832,956 104,393 37,015 49,467 3,452,621 7,600,314 8,168,936 278,553,110 ---------- --------- --------- --------- --------- --------- ----------- 18,606,829 7,726,226 6,561,443 8,227,600 7,650,103 8,560,030 296,386,066 ========== ========= ========= ========= ========= ========= ===========
13 RUBBERMAID RETIREMENT PLAN Notes to Financial Statements December 31, 1997 and 1996 (1) DESCRIPTION OF THE PLAN The following brief description of the Rubbermaid Retirement Plan (Plan) is provided for general information purposes only. Participants should refer to the Plan document for more complete information. (a) GENERAL The Plan is a defined contribution profit sharing plan with a 401(k) feature covering salaried and non-bargaining hourly associates, as defined by the Plan, of Rubbermaid Incorporated and Affiliated Companies that adopt the Plan (Company). Participation in the Plan begins on January 1 coincident with or following an associate's date of hire. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). (b) EMPLOYER CONTRIBUTIONS For Plan years beginning on or after January 1, 1995, but prior to January 1, 1997 (see note 6), as defined in the Plan document, depending upon the location at which the participant is employed, the participant will receive Company contributions equal to either the 5 Percent or the 7 Percent Contribution Formula. The major provisions of each contribution are described below: - 5 PERCENT CONTRIBUTION FORMULA - For those participants employed at locations listed in Section B of Schedule I to the Plan, the Company contributes to the Plan a minimum of 3 percent of the aggregate eligible compensation plus an additional amount (not to exceed 2.5 percent based in 1995 and 1996 on return on net assets (RONA) and in 1997 on the level of Economic Value Added Improvement (EVA) that is achieved by the Company for the Plan year) of the aggregate eligible compensation. Such contribution is then allocated to eligible participants based on units credited during the Plan year (one unit is credited for each full $100 of compensation, one additional unit is credited for each $100 of compensation in excess of the Social Security taxable wage base, and one unit is credited for each full year of service). A participant must be employed by the Company at the end of the Plan year and complete at least 1,000 hours during the Plan year in order to be eligible to receive a Company contribution, subject to limited exceptions. - 7 PERCENT CONTRIBUTION FORMULA - For those non-highly compensated participants employed at locations listed in Section A of Schedule I to the Plan, the Company contributes to the Plan a minimum of 3 percent of the aggregate eligible compensation plus an additional amount (not to exceed 4.7 percent based in 1995 and 1996 on RONA and in 1997 on the level of EVA that is achieved by the Company for the Plan year) of the aggregate eligible compensation. Such contribution is then allocated to non-highly compensated eligible participants based on units credited during the Plan year (one unit is credited for each full $100 of compensation, and one unit is credited for each full year of service). Highly compensated eligible participants (Continued) 14 2 RUBBERMAID RETIREMENT PLAN Notes to Financial Statements receive an amount equal to 5 percent of compensation plus 5 percent of compensation in excess of the Social Security taxable wage base for the Plan year. A participant must be employed by the Company at the end of the Plan year and complete at least 1,000 hours during the Plan year in order to be eligible to receive a Company contribution, subject to limited exceptions. In addition, certain locations of the Company pay out to each Eligible Employee a payout of 0 percent to 8 percent of base pay (plus overtime) determined exclusively by the division's or location's performance on Improvement Sharing Plan measures. This payout will occur annually and can be paid in cash or deferred to the participant's account in the Plan, as a 401(k) contribution. The amount of deferral contributions to be made to the Plan on behalf of an Eligible Employee by the Company shall be fully vested. (c) EMPLOYEE SALARY DEFERRAL CONTRIBUTIONS A 401(k) salary deferral feature is included in the Plan, allowing participants to make pretax salary deferrals of base compensation or wages and bonus compensation paid through the Improvement Sharing Plan. (d) PARTICIPANT ACCOUNTS Separate accounts are maintained for each participant. Contributions are invested, as instructed by the participants, in one or more of the available investment funds. Each participant's account is credited with contributions, if any, and earnings. (e) VESTING Participants are 100 percent vested in the portion of their accounts attributable to 401(k) contributions (plus earnings). Vesting in the remainder of their accounts is based upon a seven-year graduated vesting schedule. A participant becomes 100 percent vested after completing seven years of vesting service. Upon death, disability, or attainment of age 65, participants become 100 percent vested. (f) INVESTMENTS All investments are participant-directed, and participants may elect to invest their account in the Plan in one or more of the eight investment funds held by the Plan. Currently, the available investment funds include: (a) Stable Value Fund, comprised primarily of guaranteed principal and interest contracts with major financial institutions and insurance companies; (b) Spartan U.S. Equity Index Fund, which invests primarily in the 500 companies that comprise the Standard & Poor's 500 and in other securities that are based on the value of the index; (c) Fidelity Puritan Fund, which invests in a broadly diversified portfolio of high-yielding equity and debt securities; (d) Fidelity Magellan Fund, which invests primarily in equity securities of domestic, foreign, and multinational issuers of all sizes that offer potential for growth; (e) Fidelity Contrafund, which invests mainly in equity securities of companies that are undervalued or out-of-favor; (f) Fidelity Small Cap Selector Fund, which invests mainly in equity securities of companies with small market capitalizations that are determined to be undervalued compared to others in their industries; (g) Fidelity Diversified International Fund, which invests mainly in foreign equity (Continued) 15 3 RUBBERMAID RETIREMENT PLAN Notes to Financial Statements securities that are determined to be undervalued compared to others in their industries and countries; and (h) Rubbermaid Unitized Stock Fund, which invests in common stock of Rubbermaid Incorporated. For investment purposes only, investments of the Plan are commingled with the investments of the Rubbermaid Retirement Plan for Collectively-Bargained Associates. Collectively, such funds comprise the Rubbermaid Master Trust (Master Trust) with Fidelity Management Trust Company as the trustee. Allocation of the Master Trust investments and income among plans is determined on the basis of the value of the participant accounts attributed to each plan. (g) PAYMENT OF BENEFITS A participant is eligible to receive a distribution upon termination of employment, in either a lump-sum cash payment equal to the value of his or her vested account or periodic payments in such amounts as elected by the participant (subject to provisions of the Plan). The amount paid shall not exceed the participant's vested interest. (h) PARTICIPANT LOANS Loans of up to 50 percent of the vested portion of the participant's individual account may be obtained by qualified participants. The maximum loan permissible is generally the lesser of $50,000 or one-half of the participant's vested balance. (i) FORFEITED ACCOUNTS Employer contributions were eligible to be reduced by forfeited nonvested accounts totaling approximately $1,395,000 in 1997 and $2,339,000 in 1996. (2) SIGNIFICANT ACCOUNTING POLICIES (a) BASIS OF PRESENTATION The accompanying financial statements have been prepared on the accrual basis of accounting. (b) INVESTMENT VALUATION AND INCOME RECOGNITION Unrealized appreciation or depreciation, equal to the difference between the cost and the market value of investments at the applicable valuation date, is recognized in determining the value of participant accounts. The excess (deficiency) of net proceeds over market value calculation methodology is based on the revalued cost of assets instead of historical cost. The revalued cost is the market value of an asset at the beginning of the Plan year or at the time of purchase during the year. The Plan's investments are stated at fair value except for the guaranteed principal and interest contracts included in the Stable Value Fund, which are stated at contract value (see note 2[c]). Purchases and sales of securities are recorded on a trade date basis. (Continued) 16 4 RUBBERMAID RETIREMENT PLAN Notes to Financial Statements (c) GUARANTEED PRINCIPAL AND INTEREST CONTRACTS The Master Trust has guaranteed principal and interest contracts with major financial institutions and insurance companies, as discussed in note 5. These investments are part of the Stable Value Fund at December 31, 1997 and 1996. These contracts are included in the financial statements at contract value, as noted above, because they are fully benefit-responsive. (d) PAYMENT OF BENEFITS Benefits are recorded when paid. (e) ADMINISTRATIVE EXPENSES All normal costs and expenses of administering the Plan and Trust are paid by the Plan. Any cost resulting from a participant obtaining a loan may be borne by such participant or charged to the participant's individual account. (f) USE OF ESTIMATES 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 at the date of the financial statements and the reported amounts of changes in assets available for benefits during the reporting period. Actual results could differ from those estimates. (3) PLAN TERMINATION Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants will become 100 percent vested in their accounts, and the Trustee shall distribute the assets in accordance with the terms of the Plan and the trust agreement. (4) TAX STATUS The Internal Revenue Service has determined and informed the Company by letter dated November 20, 1996, that the Plan and related trust are designed in accordance with applicable sections of the Internal Revenue Code (IRC). Therefore, no provision for income taxes has been included in the Plan's financial statements. The Plan was amended effective January 1, 1997 and also, as described in note 6, at January 1, 1998. The plan administrator and the Plan's tax counsel do not believe that these amendments will have any negative impact on compliance with the applicable requirements of the IRC. (Continued) 17 5 RUBBERMAID RETIREMENT PLAN Notes to Financial Statements (5) MASTER TRUST FINANCIAL INFORMATION As described in note 1(f), all of the Plan's investments as of December 31, 1997, and a portion of the Plan's investments as of December 31, 1996, are contained in a Master Trust in which they are combined for investment purposes with the assets of the Rubbermaid Retirement Plan for Collectively-Bargained Associates. The Master Trust fund assets at December 31, 1997 and 1996, are as follows:
1997 1996 ------------------------- ------------------------- Plan's Plan's Percentage Percentage Market Interest Market Interest Value (Rounded) Value (Rounded) ------------- --------- ----------- ----------- Stable Value Fund $ 210,402,030 71% 305,726,826 67% Spartan U.S. Equity Index Fund 105,294,786 56 - Fidelity Puritan Fund 21,806,761 65 - Fidelity Magellan Fund 26,393,970 64 - Fidelity Contrafund 25,337,061 73 - Fidelity Small Cap Selector Fund 8,764,941 88 - Fidelity Diversified International Fund 9,583,013 68 - Rubbermaid Unitized Stock Fund 9,212,167 89 - Equity Index Fund - 31,823,616 0 Fixed Income Fund - 3,863,162 0 Stock Fund - 1,728,946 0 Loan Fund 9,293,110 82 1,823,586 0 ------------- ----------- Total investments held by the Master Trust fund $ 426,087,839 68% 344,966,136 60% ============= ===========
The Master Trust has investment contracts with major financial institutions and insurance companies with respect to the Stable Value Fund. Fidelity Management Trust Company maintains the contributions in a pooled account. The account is credited with actual earnings on the underlying investments and charged for Plan withdrawals and administration expenses charged by Primco, the investment manager. The contract is included in the financial statements at contract value, which approximates fair values. Contract value represents contributions made under the contract, plus earnings, less Plan withdrawals and administrative expenses. There are no reserves against contract value for credit risk of the contract issuer or otherwise. At December 31, 1997 and 1996, the fair value of the guaranteed principal and interest contracts of the Rubbermaid Retirement Plan was $42,858,567 and $108,163,199, respectively, and the corresponding contract value was $42,695,507 and $107,815,653, respectively. Both the average yield and the crediting interest rate were 6.03 percent as of December 31, 1997 and were 6.52 percent as of December 31, 1996. On November 1, 1996, the assets of the Plan except those of the Stable Value Fund were transferred from National City Bank to Fidelity Management Trust Company (Fidelity). As of December 31, 1996, National City Bank was the trustee of the Master Trust, which comprised the Stable Value Fund of the Plan commingled with the investments of the Rubbermaid Retirement Plan for Collectively-Bargained Associates. On September 1, 1997, the Stable Value Fund of the Plan along with all the assets of the Rubbermaid Retirement Plan for Collectively-Bargained Associates maintained by National City Bank Master Trust, were transferred to (Continued) 18 6 RUBBERMAID RETIREMENT PLAN Notes to Financial Statements Fidelity, the new trustee of the Master Trust. As of December 31, 1997, the Master Trust maintained by Fidelity is comprised of all the assets of the Plan commingled with all the assets of the Rubbermaid Retirement Plan for Collectively-Bargained Associates. A summary of Master Trust investment activity is as follows:
Equity Fixed Stable Spartan U.S. Fidelity Index Income Value Stock Equity Index Puritan Fund Fund Fund Fund Fund Fund ------------ ---------- ----------- --------- ----------- ---------- Balance at December 31, 1996 $ 31,823,616 3,863,162 305,726,826 1,728,946 - - Contributions: Employer 777,152 244,384 5,640,103 22,702 1,601,648 469,879 Participants 104,007 4,051 2,791,553 1,592 1,866,680 671,115 Net appreciation (depreciation) in fair value 7,949,708 20,643 6,093,312 (686,919) 17,074,352 1,273,039 Dividends - 171,935 4,299,640 28,926 1,903,418 1,388,924 Interest 11,725 1,705 5,393,533 613 154,535 38,765 Loan repayments 171,453 15,033 1,784,601 662 693,067 148,628 Benefit payments (2,413,794) (67,168) (45,838,418) (138,923) (5,235,225) (718,941) Loan disbursements (330,258) (29,549) (3,012,159) (17,731) (962,302) (162,267) Interfund (37,943,462) (4,206,242) (71,192,238) (935,443) 35,648,210 18,894,587 Transfers (102,782) (8,292) (660,740) (2,899) (841,604) (258,573) Other (47,365) (9,662) (623,983) (1,526) 53,392,007 61,605 ------------ ---------- ----------- --------- ----------- ---------- Balance at December 31, 1997 $ - - 210,402,030 - 105,294,786 21,806,761 ============ ========== =========== ========= =========== ==========
Fidelity Fidelity Rubbermaid Fidelity Small Cap Diversified Unitized Magellan Fidelity Selector International Stock Loan Fund Contrafund Fund Fund Fund Fund Totals ----------- ---------- --------- --------- --------- --------- ----------- Balance at December 31, 1996 $ - - - - - 1,823,586 344,966,136 Contributions: Employer 654,662 653,268 246,520 350,574 180,566 - 10,841,458 Participants 964,069 1,022,285 365,534 492,510 216,421 - 8,499,817 Net appreciation (depreciation) in fair value 1,411,014 486,020 616,283 468,313 6,051,860 - 40,757,625 Dividends 1,427,844 2,340,217 603,028 354,438 (3,356) - 12,515,014 Interest 58,344 46,398 17,042 24,232 9,856 117,545 5,874,293 Loan repayments 244,642 196,570 71,621 101,534 43,600 (3,471,411) - Benefit payments (1,122,056) (845,155) (391,895) (517,159) (595,828) (1,185,025) (59,069,587) Loan disbursements (268,997) (284,669) (62,787) (114,720) (79,759) 5,325,198 - Interfund 23,184,698 21,967,459 7,393,769 8,547,719 (1,210,170) (148,887) - Transfers (256,993) (342,777) (125,592) (171,569) 1,153,249 (40,528) (1,659,100) Other 96,743 97,445 31,418 47,141 3,445,728 6,872,632 63,362,183 ----------- ---------- --------- --------- --------- --------- ----------- Balance at December 31, 1997 $26,393,970 25,337,061 8,764,941 9,583,013 9,212,167 9,293,110 426,087,839 =========== ========== ========= ========= ========= ========= =========== (Continued)
19 7 RUBBERMAID RETIREMENT PLAN Notes to Financial Statements (6) SUBSEQUENT EVENTS Effective January 1, 1998, the Plan was amended to provide a Company contribution equal to 6 percent of a participant's (other than Everything Rubbermaid Store employees) eligible compensation with an opportunity for an additional 3 percent of the participant's eligible compensation based on "EVA Targets." Additionally, effective April 1, 1998, the Plan shall provide for a fully vested Company matching contribution equal to 50 percent (100 percent during the second quarter of 1998) of the first 6 percent of a participant's salary deferred into the Plan and shall provide for rollovers. -----END PRIVACY-ENHANCED MESSAGE-----