-----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, iCe6XyqVGv0YJWQsGlcp8YKJMlT/NsnSrW8uYTPLJeSBm7HH1bkgsbh6z2koH6du zUBGsJPF0uLOnXa8RSI85w== 0000950144-95-001809.txt : 199506290000950144-95-001809.hdr.sgml : 19950629 ACCESSION NUMBER: 0000950144-95-001809 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19941231 FILED AS OF DATE: 19950628 SROS: CSX SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: RYDER SYSTEM INC CENTRAL INDEX KEY: 0000085961 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-AUTO RENTAL & LEASING (NO DRIVERS) [7510] IRS NUMBER: 590739250 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-04364 FILM NUMBER: 95549929 BUSINESS ADDRESS: STREET 1: 3600 NW 82ND AVE CITY: MIAMI STATE: FL ZIP: 33166 BUSINESS PHONE: 3055933726 MAIL ADDRESS: STREET 1: 3600 NW 82 AVENUE CITY: MIAMI STATE: FL ZIP: 33166 11-K 1 RYDER SYSTEM FORM 11-K (PLAN B) 12-31-94 1 FORM 11-K (Mark one) [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE 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 #33-4333 RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN B Ryder System, Inc. 3600 N.W. 82 Avenue Miami, Florida 33166 2 Independent Auditors' Report The Participants and Administrator Ryder System, Inc. Employee Savings Plan B: We have audited the accompanying statements of financial position with fund information of Ryder System, Inc. Employee Savings Plan B as of December 31, 1994 and 1993, and the related statements of income and changes in plan equity with fund information for each of the years in the two-year period ended December 31, 1994. 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 benefits of the Plan as of December 31, 1994 and 1993 and the changes in net assets available for benefits for each of the years in the two-year period ended December 31, 1994, 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 Investments and Schedule of 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's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The fund information in the statements of financial position with fund information and statements of income and changes in plan equity with fund information are presented for purposes of additional analysis rather than to present the financial position and changes in plan equity for 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. /s/ KPMG Peat Marwick LLP Miami, Florida June 12, 1995 3 RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN B STATEMENT OF FINANCIAL POSITION WITH FUND INFORMATION DECEMBER 31, 1994
Assets Fund A Fund B Fund C Fund D Fund E Fund F ----------- ---------- --------- ---------- ---------- ---------- Investments: Fixed income investments, at cost $ 196,711 118,163 22,191 46,058 35,488 73,810 Group annuity insurance contracts, at contract value 50,313,811 Pooled investment funds (cost, $63,472,127) 2,248,172 15,264,599 33,139,293 10,884,049 Securities of participating employer (cost, $22,643,220) 18,581,777 Other Securities (cost, $2,430,211) Participant loans receivable ----------- ---------- --------- ---------- ---------- ---------- Total investments 18,778,488 50,431,974 2,270,363 15,310,657 33,174,781 10,957,859 Dividends and interest receivable 368 298,653 130 138 67 160 Contributions receivable and other 490,581 1,166,449 112,811 448,795 1,023,972 488,542 Interfund transfers receivable (payable) 619,917 152,408 37,926 (164,803) (194,645) (111,954) ----------- ---------- --------- ---------- ---------- ---------- Total assets $19,889,354 52,049,484 2,421,230 15,594,787 34,004,175 11,334,607 =========== ========== ========= ========== ========== ========== Liabilities and Plan Equity Other liabilities $ 706,459 571,806 61,425 3,646 513,717 18,976 Plan equity 19,182,895 51,477,678 2,359,805 15,591,141 33,490,458 11,315,631 ----------- ---------- --------- ---------- ---------- ---------- Total liabilities and plan equity $19,889,354 52,049,484 2,421,230 15,594,787 34,004,175 11,334,607 =========== ========== ========= ========== ========== ========== Number of units 276,586 5,042,557 115,204 518,324 833,001 191,008 =========== ========== ========= ========== ========== ========== Plan equity per unit $ 69.36 10.21 20.48 30.08 40.20 59.24 =========== ========== ========= ========== ========== ========== Assets Fund G Fund H Loan Fund Total ---------- --------- --------- ----------- Investments: Fixed income investments, at cost 127,478 1,117 621,016 Group annuity insurance contracts, at contract value 50,313,811 Pooled investment funds (cost, $63,472,127) 10,025,537 71,561,650 Securities of participating employer (cost, $22,643,220) 18,581,777 Other Securities (cost, $2,430,211) 1,069,759 1,069,759 Participant loans receivable 7,931,900 7,931,900 ---------- --------- --------- ----------- Total investments 10,153,015 1,070,876 7,931,900 150,079,913 Dividends and interest receivable 192 16,739 115,040 431,487 Contributions receivable and other 519,619 6,995 380,243 4,638,007 Interfund transfers receivable (payable) (99,863) (23,391) (215,595) 0 ---------- --------- --------- ----------- Total assets 10,572,963 1,071,219 8,211,588 155,149,407 ========== ========= ========= =========== Liabilities and Plan Equity Other liabilities 75,204 1,308 1,952,541 Plan equity 10,497,759 1,069,911 8,211,588 153,196,866 ---------- --------- --------- ----------- Total liabilities and plan equity 10,572,963 1,071,219 8,211,588 155,149,407 ========== ========= ========= =========== Number of units 219,390 20,455 ========== ========= Plan equity per unit 47.85 52.31 ========== =========
See accompanying note to financial statements. 4 RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN B STATEMENT OF FINANCIAL POSITION WITH FUND INFORMATION DECEMBER 31, 1993
Assets Fund A Fund B Fund C Fund D Fund E Fund F ----------- ---------- --------- ---------- ---------- ---------- Investments: Fixed income investments, at cost $ 161,607 157,464 74,837 85,942 60,150 Group annuity insurance contracts, at contract value 46,532,755 Pooled investment funds (cost, $51,037,453) 2,136,004 14,228,186 30,178,166 8,886,848 Securities of participating employer (cost, $18,671,027) 18,152,666 Other Securities (cost, $2,733,724) Participant loans receivable ----------- ---------- --------- ---------- ---------- ---------- Total investments 18,314,273 46,690,219 2,136,004 14,303,023 30,264,108 8,946,998 Dividends and interest receivable 387 807,825 6,979 60,317 1,278,981 1,135,452 Contributions receivable and other 79,520 302,177 21,620 70,106 150,419 43,479 Transfers from other plan 42,033 186,473 42,341 272,502 (109,692) (45,788) Interfund transfers receivable (payable) 34,518 (380,041) (59,301) (3,837) 38,226 21,664 ----------- ---------- --------- ---------- ---------- ---------- Total assets $18,470,731 47,606,653 2,147,643 14,702,111 31,622,042 10,101,805 =========== ========== ========= ========== ========== ========== Liabilities and Plan Equity Other liabilities $ 271,238 1,494,691 42,151 191,065 1,589,418 1,241,342 Plan equity 18,199,493 46,111,962 2,105,492 14,511,046 30,032,624 8,860,463 ----------- ---------- --------- ---------- ---------- --------- Total liabilities and plan equity $18,470,731 47,606,653 2,147,643 14,702,111 31,622,042 10,101,805 =========== ========== ========= ========== ========== ========== Number of units 7,963,512 29,907,092 1,162,904 4,157,225 5,885,285 5,031,216 =========== ========== ========= ========== ========== ========== Plan equity per unit $ 2.29 1.54 1.81 3.49 5.10 1.76 =========== ========== ========= ========== ========== ========== Assets Fund G Fund H Loan Fund Total --------- --------- --------- ----------- Investments: Fixed income investments, at cost 26,100 566,100 Group annuity insurance contracts, at contract value 46,532,755 Pooled investment funds (cost, $51,037,453) 7,135,855 62,565,059 Securities of participating employer (cost, $18,671,027) 18,152,666 Other Securities (cost, $2,733,724) 2,593,783 2,593,783 Participant loans receivable 7,279,566 7,279,566 --------- --------- --------- ----------- Total investments 7,161,955 2,593,783 7,279,566 137,689,929 Dividends and interest receivable 12,470 3,302,411 Contributions receivable and other 31,565 37,914 736,800 Transfers from other plan (109,898) 277,971 Interfund transfers receivable (payable) 205,659 (42,209) 185,321 0 --------- --------- --------- ----------- Total assets 7,301,751 2,551,574 7,502,801 142,007,111 ========= ========= ========= =========== Liabilities and Plan Equity Other liabilities 153,820 35,631 29,999 5,049,355 Plan equity 7,147,931 2,515,943 7,472,802 136,957,756 --------- --------- --------- ----------- Total liabilities and plan equity 7,301,751 2,551,574 7,502,801 142,007,111 ========= ========= ========= =========== Number of units 4,251,264 1,280,825 ========= ========= Plan equity per unit 1.68 1.96 ========= =========
See accompanying note to financial statements. 5 RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN B STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY WITH FUND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1994
Fund A Fund B Fund C Fund D Fund E Fund F ----------- ---------- --------- ---------- ---------- ---------- Net investment income: Dividends $ 460,922 1,543,107 1,408,251 720,738 Interest 13,287 3,407,918 80,738 4,740 7,540 4,717 ----------- ---------- --------- ---------- ---------- ---------- Net investment income 474,209 3,407,918 80,738 1,547,847 1,415,791 725,455 Realized gains 14,035 6,952 155,174 7,922 Net change in unrealized appreciation/ (depreciation) on investments (3,543,082) (954,368) (1,249,664) (183,923) Contributions: Employer contributions 205,995 521,882 55,627 194,034 441,567 170,936 Employee contributions 1,942,528 4,484,973 373,701 1,893,553 4,354,295 1,863,625 ----------- ---------- --------- ---------- ---------- ---------- Total contributions 2,148,523 5,006,855 429,328 2,087,587 4,795,862 2,034,561 Participant loan repayments 484,978 1,281,105 112,997 387,657 973,470 369,492 Distributions and other (893,079) (1,910,026) (169,367) (367,340) (557,320) (452,187) Transfer from (to) Plan A 1,088,554 (176,128) 17,065 (286,196) 35,467 38,180 Plan fees and expenses (31,244) (83,685) (4,885) (22,039) (40,689) (14,528) Loans to participants (475,216) (1,521,645) (104,658) (407,977) (905,810) (307,356) Interfund transfers 1,715,724 (638,678) (106,905) (912,028) (1,164,447) 237,552 ----------- ---------- --------- ---------- ---------- ---------- Net changes in plan equity 983,402 5,365,716 254,313 1,080,095 3,457,834 2,455,168 Plan equity at beginning of period 18,199,493 46,111,962 2,105,492 14,511,046 30,032,624 8,860,463 ----------- ---------- --------- ---------- ---------- ---------- Plan equity at end of period $19,182,895 51,477,678 2,359,805 15,591,141 33,490,458 11,315,631 =========== ========== ========= ========== ========== ========== Fund G Fund H Loan Fund Total ---------- ---------- ---------- ----------- Net investment income: Dividends 1,082,644 6,060 5,221,722 Interest 3,273 4,181 435,436 3,961,830 ---------- ---------- ---------- ----------- Net investment income 1,085,917 10,241 435,436 9,183,552 Realized gains 244 100,040 284,367 Net change in unrealized appreciation/ (depreciation) on investments (1,050,127) (1,220,511) (8,201,675) Contributions: Employer contributions 164,233 (278) 1,753,996 Employee contributions 1,978,315 16,890,990 ---------- ---------- ---------- ----------- Total contributions 2,142,548 (278) 18,644,986 Participant loan repayments 343,523 1,101 (3,954,323) 0 Distributions and other (377,581) (52,743) (14,658) (4,794,301) Transfer from (to) Plan A 411,225 (15,566) 227,174 1,339,775 Plan fees and expenses (13,570) (6,954) (217,594) Loans to participants (280,103) (43,935) 4,046,700 0 Interfund transfers 1,087,752 (217,427) (1,543) 0 ---------- ---------- ---------- ----------- Net changes in plan equity 3,349,828 (1,446,032) 738,786 16,239,110 Plan equity at beginning of period 7,147,931 2,515,943 7,472,802 136,957,756 ---------- ---------- ---------- ----------- Plan equity at end of period 10,497,759 1,069,911 8,211,588 153,196,866 ========== ========== ========== ===========
See accompanying note to financial statements. 6 RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN B STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY WITH FUND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1993
Fund A Fund B Fund C Fund D Fund E Fund F ----------- ----------- --------- ---------- ---------- ---------- Net investment income: Dividends $ 461,120 1,309,263 1,161,789 966,582 Interest 4,066 4,102,694 87,650 3,462 6,508 4,603 ----------- ----------- --------- ---------- ---------- ---------- Net investment income 465,186 4,102,694 87,650 1,312,725 1,168,297 971,185 Realized gains 806,698 70,447 1,109,774 615,749 Net change in unrealized appreciation/ (depreciation) on investments 1,374,522 412,264 3,015,777 343,876 Contributions: Employer contributions 230,514 877,893 94,141 221,841 505,875 187,029 Employee contributions 1,829,759 7,140,217 550,594 2,061,728 4,614,359 1,780,814 ----------- ----------- --------- ---------- ---------- ---------- Total contributions 2,060,273 8,018,110 644,735 2,283,569 5,120,234 1,967,843 Participant loan repayments 466,061 1,698,669 129,588 437,145 959,997 308,985 Distributions and other (762,260) (2,905,166) (154,904) (643,819) (1,259,366) (408,485) Distribution to other plan (1,279,973) (13,098,988) (902,341) (1,654,146) (4,735,903) (4,167,222) Plan fees and expenses (38,574) (84,828) (8,487) (26,823) (47,555) (18,356) Loans to participants (641,183) (1,911,788) (199,888) (388,003) (1,101,295) (328,786) Transfer from (to) Plan A 20,647,725 49,771,601 2,887,754 13,031,525 26,577,146 7,967,404 Equity Transfer to fund H (3,014,323) Interfund transfers (1,884,659) 521,658 (378,615) (323,838) (774,482) 1,608,270 ----------- ----------- --------- ---------- ---------- ---------- Net changes in plan equity 18,199,493 46,111,962 2,105,492 14,511,046 30,032,624 8,860,463 Plan equity at beginning of period 0 0 0 0 0 0 ----------- ----------- --------- ---------- ---------- ---------- Plan equity at end of period $18,199,493 46,111,962 2,105,492 14,511,046 30,032,624 8,860,463 =========== =========== ========= ========== ========== ========== Fund G Fund H Loan Fund Total ---------- --------- ---------- ----------- Net investment income: Dividends 791,381 4,690,135 Interest 2,908 472,546 4,684,437 ---------- --------- ---------- ----------- Net investment income 794,289 472,546 9,374,572 Realized gains 51,622 2,654,290 Net change in unrealized appreciation/ (depreciation) on investments 1,090,373 (139,941) 6,096,871 Contributions: Employer contributions 131,122 2,248,415 Employee contributions 1,210,112 19,187,583 ---------- --------- ---------- ----------- Total contributions 1,341,234 21,435,998 Participant loan repayments 248,464 (4,248,909) 0 Distributions and other (465,509) (39,317) 8,044 (6,630,782) Distribution to other plan (2,590,927) (214,737) (1,782,944) (30,427,181) Plan fees and expenses (14,191) (238,814) Loans to participants (233,887) (2,663) 4,807,493 0 Transfer from (to) Plan A 5,656,267 (61,549) 8,214,929 134,692,802 Equity Transfer to fund H 3,014,323 0 Interfund transfers 1,270,196 (40,173) 1,643 0 ---------- --------- ---------- ----------- Net changes in plan equity 7,147,931 2,515,943 7,472,802 136,957,756 Plan equity at beginning of period 0 0 0 0 ---------- --------- ---------- ----------- Plan equity at end of period 7,147,931 2,515,943 7,472,802 136,957,756 ========== ========= ========== ===========
See accompanying note to financial statements. 7 RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN B NOTE TO FINANCIAL STATEMENTS DECEMBER 31, 1994 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER MATTERS A. BASIS OF ACCOUNTING The financial statements of the Ryder System, Inc. Employee Savings Plan B (the "Plan") are prepared on the accrual basis of accounting. Plan assets, except for participant loan receivables and group annuity insurance contracts which are valued at contract value, are stated at market value (quoted market prices) as determined by the Plan's trustee. Purchases and sales of securities are recorded on a trade date basis. Cost is determined based on historical average cost. B. THE PLAN The following description of the Plan reflects all plan amendments through December 31, 1994, and is provided for general purposes only. As of January 1, 1993, the Ryder System, Inc. Employee Savings Plan B was established for active salaried employees and active employees, whether salaried or hourly, of the Aviation Services Division. Such employees and their participating account balances were transfered from the Ryder System, Inc. Employee Savings Plan A. Effective January 1, 1995, hourly field employees of Ryder Dedicated Logistics, Inc. and hourly employees of Ryder Driver Leasing, Inc. became eligible for this Plan. Any existing account balances in the Ryder System, Inc. Employee Savings Plan A were transferred to the Ryder System, Inc. Employee Savings Plan B. Participants should refer to the Plan document for more complete information. The Plan is a defined contribution plan and, as such, is subject to some, but not all, of the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"). It is excluded from coverage under Title IV of ERISA, which generally provides for guaranty and insurance of retirement benefits; and it is not subject to the funding requirements of Title I of ERISA. The plan is, however, subject to those provisions of Title I and II of ERISA which, among other things, require that each participant be furnished with an annual financial report and a comprehensive description of the participant's rights under the Plan, set minimum standards of responsibility applicable to fiduciaries of the Plan, and establish minimum standards for participation and vesting. Participation in the Plan is voluntary. However, to participate in the Plan, an employee must meet certain eligibility requirements related to employment date, age and service hours. In general, salaried employees of the company and participating affiliates are eligible to participate in the Plan, however, an employee who is in a unit of employees represented by a collective bargaining agent is excluded from participation in the Plan unless the unit has negotiated coverage under the Plan. In 8 addition, employees eligible to participate under another company sponsored qualified savings plan, will be excluded from participation in the Plan. The number of participants' accounts in each of the funds at December 31, 1994 is as follows: Fund A - 2,548 Fund B - 3,104 Fund C - 628 Fund D - 2,041 Fund E - 3,202 Fund F - 1,776 Fund G - 1,778 Fund H - 2,010 Loans - 1,351
C. PLAN INVESTMENT FUNDS The Plan's trustee, State Street Bank and Trust Company, maintains Plan assets in separate investment funds. Participants may elect to contribute to, or transfer among, any of the funds. Earnings are allocated monthly based on units of investment. Effective April 17, 1995, earnings are allocated daily. Investment Fund A ("Fund A") - Fund A is invested in Ryder System, Inc. common stock, which is purchased on a regular and continuous basis. Dividends are automatically reinvested in the common stock. Investment Fund B ("Fund B") - Fund B consists of funding accounts established by contracts with various insurance companies. Participants' accounts are credited with interest based on a pooling of the returns of the various funding accounts. Funding accounts generally continue for a period of two to five years after their inception. During 1994 and 1993, the yield on open funding contracts ranged from 4.89% to 9.05% and 4.89% to 9.3%, respectively. Investment Fund C ("Fund C") - Fund C consists of a funding account established with the Ryder System Federal Credit Union. Effective April 1, 1995, the assets of this fund will be merged into Fund B and this fund will be discontinued as an Investment Fund under the Plan. Investment Fund D ("Fund D") - Fund D may normally be invested in a variety of common, preferred or capital stocks, but may include investments in bonds or securities convertible into common or capital stocks, similar types of equity investments and bonds. Since Plan inception, this fund has been invested solely in shares of the Lord, Abbett Affiliated Fund. Investment Fund E ("Fund E") - Fund E may be invested primarily in common or capital stocks, though it may invest in other types of securities, including convertible bonds, convertible preferred stock, warrants, preferred stock or debt securities. 9 Since Plan inception, this fund has been invested solely in shares of the Putnam Voyager Fund. Investment Fund F ("Fund F") - Fund F may be invested in securities issued by U.S. based companies that are selling below book value. Up to 50% of the fund's portfolio may consist of securities of companies involved in prospective mergers, consolidations, liquidations and reorganizations. The fund may also engage in covered call option writing. The primary objective of the fund is capital appreciation and not necessarily the attainment of a balanced investment program. Since Plan inception, this fund has been invested solely in shares of the Mutual Series Fund, Inc., Qualified Income Fund. Investment Fund G ("Fund G") - Fund G may be invested in all types of securities, including stocks and debt securities of companies and governments of all nations. The fund's investment objective is long-term capital growth. Since Plan inception, this fund has been invested solely in shares of the Templeton World Fund. Effective April 1, 1995, assets in this fund will be transferred to the Templeton Foreign Fund. All investments in the Templeton World Fund will be discontinued. Investment Fund H ("Fund H") - Fund H is invested in Aviall, Inc. Common stock and is a frozen fund. Participants cannot contribute to nor transfer into that fund. Participants can transfer assets from Fund H to any other investment fund of the Plan. Monies remaining in that fund at December 31, 1995 will be liquidated and reinvested in Fund A. Effective April 1, 1995, three asset allocation funds will be added as investment options in the Plan. Asset allocation funds are professionally-managed combinations of investment vehicles designed to achieve a specific investment goal. The three asset allocation funds will be Life Solutions-Income & Growth, Life Solutions-Balanced Growth and Life Solutions-Growth. D. CONTRIBUTIONS Participants may elect to contribute to the Plan by having their compensation reduced by a minimum of 1% of compensation up to a maximum of the lesser of a) 10% or 15% of compensation, depending on an individual's annual salary level, b) $9,240, or c) such other amount as shall be determined by the Company's Retirement Committee from time to time. The Company matches 50% of the employee's annual contribution up to $200 or $400 per person based on certain requirements. Some eligible employees receive company contributions that include $400 of basic fully vested contribution, plus 100% match to the first $300 of employee fully vested contribution and 50% match to the next $400 or $800 of employee contribution. Participants are fully vested in the earnings of their individual contributions to the Plan and vest 25% per year in the Company contributions and the earnings attributable to such contributions. Upon participant's distribution, related, non-vested Company contributions are forfeited and are used to offset future company contributions. Effective April 1, 1995, the company matching contribution 10 schedule for some employees is amended to provide a 50% match of employee contributions to the greater of $1,200 or 3% of eligible compensation. E. DISTRIBUTIONS On termination of service, if a participant's account balance is greater than $3,500, a participant's account is distributed to the participant in the form of a single lump-sum payment upon receipt of participant's consent. Terminated participants whose account balance is less than $3,500 receive automatic distributions. The 1994 Plan Equity on the Statement of Financial Position includes the following amounts allocated to accounts of terminated persons who have not yet been paid.
1994 ---- Fund A $ 49,221 Fund B 205,931 Fund C 34,788 Fund D 23,353 Fund E 63,623 Fund F 34,909 Fund G 25,947 Fund H 3,527 Loan Fund 36,088 -------- Total $477,387 ========
F. WITHDRAWALS A participant may request a withdrawal of all or a portion of his elective contribution account balance if he can demonstrate financial hardship. The Plan Administrator must approve the request, and the amount withdrawn cannot be subsequently repaid to the Plan. Such amounts will be considered distributions to the participant for tax purposes. G. DISTRIBUTIONS TO OTHER PLAN On December 7, 1993, Ryder System, Inc. completed the spin-off of its Aviation Division, Aviall, Inc. ("Aviall"). Under the terms of the spin-off, the Company distributed to its holders of common stock one share of Aviall common stock for each four shares of Ryder System, Inc. common stock held. Participants in the Savings Plan who were invested in the Ryder System, Inc. common stock fund on this date received the equivalent of one share of Aviall common stock for each four shares of Ryder System, Inc. common stock held. As a result of the spin-off a new "Fund H" was created. The investment fund balances of Aviall employees in the Plan at December 7, 1993 were transferred to a newly established plan for employees of Aviall. 11 H. PARTICIPANT LOANS Plan participants are able to request loans against their Plan account balances subject to certain limitations as to amount and repayment term. Loans accrue interest at a rate which is comparable to those of most major lending institutions and all principal and interest payments are allocated to the Plan's investment funds based on the participant's investment elections at the time of payment. Loans which are granted and repaid in compliance with the Plan provisions will not be considered distributions to the participant for tax purposes. I. TERMINATION While it has not expressed any intention to do so, the Company may amend or terminate the Plan at any time. In the event of termination, Plan assets are payable to each participant in a lump sum equal to the balance in the participant's account. J. FEDERAL INCOME TAX EFFECTS OF THE PLAN The Plan qualifies as a profit sharing plan under Section 401(a) of the Internal Revenue Code of 1986, as amended, (the "Code") and also qualifies as a cash or deferred arrangement under Section 401(k) of the Code and, therefore, is exempt from federal income taxes under Section 501(a) of the Code. A favorable tax determination letter was obtained on August 21, 1986 for the Ryder System, Inc. Employee Savings Plan A. Since the transfer of plan assets from the Ryder System, Inc. Employee Savings Plan A to the Ryder System, Inc. Employee Savings Plan B on January 1, 1993, the company has not requested a tax determination letter for the Ryder System, Inc. Employee Savings Plan B. However, management believes the plan is a qualified plan within the meaning of Sections 401(a) and 501(a) of the Internal Revenue Code and, accordingly, is exempt from Federal Income Tax. Under a plan qualified pursuant to Sections 401(a) and (k) of the Code, participants generally will not be taxed on contributions or matching contributions, or earnings thereon, until such amounts are distributed to participants or their beneficiaries under the Plan. The tax-deferred contributions and matching contributions are deductible by the company for tax purposes when those contributions are made, subject to certain limitations set forth in Section 404 of the Code. Participants or their beneficiaries will be taxed, at ordinary income tax rates, on the amount they receive as a distribution from the Plan at the time they receive the distribution. However, if the participant or beneficiary receives a lump sum payment of the balance under the Plan in a single taxable year, and the distribution is made by reason of death, disability or termination of employment of the participant, or after the participant has attained age 59 1/2, then certain special tax rules may be applicable. 12 K. PLAN FEES AND EXPENSES Generally, Plan fees and expenses are paid by the Plan. At its discretion, the Company may elect to pay some administrative and marketing expenses. L. NET REALIZED GAINS OR LOSSES Net realized gains or losses on investments covering each of the last two years are as follows:
FOR THE YEAR ENDED DECEMBER 31, 1994: NET AGGREGATE AGGREGATE REALIZED PROCEEDS COST GAIN/(LOSS) ---------- --------- ----------- Fund A $ 4,039,960 4,025,925 14,035 Fund D 2,618,082 2,611,130 6,952 Fund E 5,539,933 5,384,759 155,174 Fund F 2,543,826 2,535,904 7,922 Fund G 3,333,805 3,333,561 244 Fund H 742,829 642,789 100,040 ----------- ---------- ------- $18,818,435 18,534,068 284,367 =========== ========== =======
FOR THE YEAR ENDED DECEMBER 31, 1993: NET AGGREGATE AGGREGATE REALIZED PROCEEDS COST GAIN/(LOSS) ---------- --------- ----------- Fund A $ 4,973,090 4,166,392 806,698 Fund D 3,808,556 3,738,109 70,447 Fund E 7,731,536 6,621,762 1,109,774 Fund F 5,262,837 4,647,088 615,749 Fund G 2,775,031 2,723,409 51,622 ----------- ---------- --------- $24,551,050 21,896,760 2,654,290 =========== ========== =========
13 M. SUBSEQUENT EVENTS The change in net unrealized gains or losses arising in the various funds of the Plan after December 31, 1994 and prior to June 1, 1995 are as follows:
UNREALIZED UNREALIZED NET CHANGE IN GAINS/(LOSSES) GAINS/(LOSSES) UNREALIZED AT DECEMBER 31, 1994 AT MAY 31, 1995 GAINS/(LOSSES) -------------------- --------------- -------------- Fund A $(4,061,443) (1,448,338) 2,613,105 Fund B 0 0 0 Fund C 0 0 0 Fund D (193,976) 1,902,614 2,096,590 Fund E 8,084,533 11,504,813 3,420,280 Fund F 795,884 2,309,378 1,513,494 Fund G (596,918) 613,393 1,210,311 Fund H (1,360,452) (1,216,930) 143,522 Loan Fund $ 0 0 0
14 RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN B SCHEDULE I SCHEDULE OF INVESTMENTS
NUMBER OF SHARES, UNITS UNREALIZED OR PRINCIPAL MARKET APPRECIATION AMOUNTS COST VALUE (DEPRECIATION) ------------- ------------ ----------- -------------- AT DECEMBER 31, 1994 Directed Account Short-Term Investment Fund 621,016 $ 621,016 621,016 Fund A 831,632 22,643,220 18,581,777 (4,061,443) Fund B 50,313,811 50,313,811 50,313,811 Fund C 2,248,172 2,248,172 2,248,172 Fund D 1,551,496 15,458,575 15,264,599 (193,976) Fund E 2,920,261 25,054,760 33,139,293 8,084,533 Fund F 414,102 10,088,165 10,884,049 795,884 Fund G 707,519 10,622,455 10,025,537 (596,918) Fund H 142,596 2,430,211 1,069,759 (1,360,452) Loan Fund 7,931,900 7,931,900 ------------ ----------- ---------- $147,412,285 150,079,913 2,667,628 ------------ ----------- ---------- AT DECEMBER 31, 1993 Directed Account Short-Term Investment Fund 566,100 $ 566,100 566,100 Fund A 682,525 18,671,027 18,152,666 (518,361) Fund B 46,532,755 46,532,755 46,532,755 Fund C 2,136,004 2,136,004 2,136,004 Fund D 1,333,476 13,467,794 14,228,186 760,392 Fund E 2,516,944 20,843,969 30,178,166 9,334,197 Fund F 329,142 7,907,041 8,886,848 979,807 Fund G 454,223 6,682,646 7,135,855 453,209 Fund H 170,084 2,733,724 2,593,783 (139,941) Loan Fund 7,279,566 7,279,566 7,279,566 ------------ ----------- ---------- $126,820,626 137,689,929 10,869,303 ------------ ----------- ---------- Net appreciation/(depreciation) included in Statement of Income and Changes in Plan Equity for the Year Ended December 31, 1994 $(8,201,675) ===========
15 RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN B SCHEDULE II SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1994 The are no reportable transactions during the year ended December 31, 1994 16 Independent Auditor's Consent ----------------------------- The Participant and Administrator Ryder System, Inc. Employee Savings Plan B: We consent to incorporation by reference in the Registration Statement (No. 33-4333) on Form S-8 of Ryder System, Inc. covering the Ryder System, Inc. Employee Savings Plan B, of our report dated June 12, 1995, relating to the statements of financial position with fund information of the Ryder System, Inc. Employee Savings Plan B as of December 31, 1994 and 1993, and the related statements of income and changes in plan equity with fund information for each of the years in the two-year period ended December 31, 1994, and related schedules of investments as of December 31, 1994 and 1993, and schedule of reportable transactions for the year ended December 31, 1994, which report appears in the December 31, 1994 annual report on Form 11-K of the Ryder System, Inc. Employee Savings Plan B filed by Ryder System, Inc. KPMG Peat Marwick LLP Miami, Florida June 26, 1995 17 REQUIRED INFORMATION Financial Statements Independent Auditors' Report Statement of Financial Position, with Fund Information, as of December 31, 1994 and 1993 Statement of Income & Changes in Plan Equity, with Fund Information, for the year ending December 31, 1994 and 1993 Notes to Financial Statements Exhibits Schedule I - Schedule of Investments as of December 31, 1994 and 1993 Schedule II - Schedule of Reportable Transactions Independent Auditors' Consent SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Ryder System, Inc. Retirement Committee has duly caused this annual report to be signed by the undersigned thereunto duly authorized. RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN B ------------------------------------------ Date: June 27, 1995 By /s/ Thomas E. McKinnon ------------------------------------------- Thomas E. McKinnon Chairman, Ryder System, Inc. Retirement Committee Executive Vice President, Human Resources Ryder System, Inc. -----END PRIVACY-ENHANCED MESSAGE-----