-----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, MT2BpWtsR86VxJ5sEJQyYZhJNnHE+unyQrTfU4OLxfiDpUcXBalHeeytVXQgNVnb hrGB1plHv4QNad2tUNXCsg== 0000950144-96-003940.txt : 19960705 0000950144-96-003940.hdr.sgml : 19960705 ACCESSION NUMBER: 0000950144-96-003940 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960702 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: 96590459 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 EMPLOYEE SAVINGS PLAN B FORM 11-K 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, 1995 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 #________ 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, 1995 and 1994, and the related statements of income and changes in plan equity with fund information for each of the years in the three-year period ended December 31, 1995. 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, 1995 and 1994, and the changes in net assets available for benefits for each of the years in the three-year period ended December 31, 1995, 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 statement of financial position with fund information and statement 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 14, 1996 3 RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN B STATEMENT OF FINANCIAL POSITION WITH FUND INFORMATION DECEMBER 31, 1995
Assets Fund A Fund B Fund C Fund D Fund E Fund F Fund G ------------------------------------------------------------------------ Investments: Fixed income investments, at cost $ 779,262 7,122,281 0 268,153 580,997 268,165 134,075 Group annuity insurance contracts, at cost 0 65,086,146 0 0 0 0 0 Pooled investment funds (cost, $94,496,116) 0 0 0 25,936,796 57,518,443 21,226,632 12,642,366 Securities of participating employer (cost, $23,995,480) 20,649,019 0 0 0 0 0 0 Participant loans receivable 0 0 0 0 0 0 0 ------------------------------------------------------------------------ Total investments 21,428,281 72,208,427 0 26,204,949 58,099,440 21,494,797 12,776,441 Dividends and interest receivable 3,767 394,067 0 89,515 0 405 228,407 Contributions receivable and other 55,972 197,891 1,760 65,875 144,896 50,939 37,574 Interfund transfers receivable (payable) 682,002 (71,997) 103 (45,492) 118,529 20,276 (432) ------------------------------------------------------------------------ Total assets $22,170,022 72,728,388 1,863 26,314,847 58,362,865 21,566,417 13,041,990 ======================================================================== Liabilities and Plan Equity Other liabilities $ 342,838 215,340 1,863 42,505 90,727 31,125 23,715 Plan equity 21,827,184 72,513,048 0 26,272,342 58,272,138 21,535,292 13,018,275 ------------------------------------------------------------------------ Total liabilities and plan equity $22,170,022 72,728,388 1,863 26,314,847 58,362,865 21,566,417 13,041,990 ======================================================================== Number of units 272,574 6,613,336 0 657,858 1,026,469 286,159 234,418 ======================================================================== Plan equity per unit $ 80.08 10.96 0.00 39.94 56.77 75.26 55.53 ========================================================================
Assets Fund H Fund I Fund J Fund K Loans Total --------------------------------------------------------- Investments: Fixed income investments, at cost 750,251 0 0 0 0 9,903,184 Group annuity insurance contracts, at cost 0 0 0 0 0 65,086,146 Pooled investment funds (cost, $94,496,116) 0 591,543 386,041 265,388 0 118,567,209 Securities of participating employer (cost, $23,995,480) 0 0 0 0 0 20,649,019 Participant loans receivable 0 0 0 0 12,643,324 12,643,324 -------------------------------------------------------- Total investments 750,251 591,543 386,041 265,388 12,643,324 226,848,882 Dividends and interest receivable 2,431 0 0 0 233,563 952,155 Contributions receivable and other 0 969 1,431 846 398,880 957,033 Interfund transfers receivable (payable) (682,494) 0 0 (20,495) 0 0 -------------------------------------------------------- Total assets 70,188 592,512 387,472 245,739 13,275,767 228,758,070 ======================================================== Liabilities and Plan Equity Other liabilities 70,188 0 0 0 445,379 1,263,680 Plan equity 0 592,512 387,472 245,739 12,830,388 227,494,390 -------------------------------------------------------- Total liabilities and plan equity 70,188 592,512 387,472 245,739 13,275,767 228,758,070 ================================= Number of units 0 6,959 4,762 3,100 ================================= Plan equity per unit 0.00 85.14 81.37 79.27 =================================
See accompanying notes to financial statements. 4 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 ---------------------------------------------------------------- Investments: Fixed income investments, at cost $ 667,248 1,266,239 116,146 470,545 1,029,562 Group annuity insurance contracts, at contract value 0 50,313,811 0 0 0 Pooled investment funds (cost, $63,472,127) 0 0 2,248,172 15,264,599 33,139,293 Securities of participating employer (cost, $22,643,220) 18,581,777 0 0 0 0 Other Securities (cost, $2,430,211) 0 0 0 0 0 Participant loans receivable 0 0 0 0 0 ---------------------------------------------------------------- Total investments 19,249,025 51,580,050 2,364,318 15,735,144 34,168,855 Dividends and interest receivable 368 298,653 130 138 67 Contributions receivable and other 20,044 18,373 18,856 24,308 29,898 Interfund transfers receivable (payable) 619,917 152,408 37,926 (164,803) (194,645) ---------------------------------------------------------------- Total assets $ 19,889,354 52,049,484 2,421,230 15,594,787 34,004,175 ================================================================ Liabilities and Plan Equity Other liabilities $ 706,459 571,806 61,425 3,646 513,717 Plan equity 19,182,895 51,477,678 2,359,805 15,591,141 33,490,458 ---------------------------------------------------------------- Total liabilities and plan equity $ 19,889,354 52,049,484 2,421,230 15,594,787 34,004,175 ================================================================ Number of units 276,586 5,042,557 115,204 518,324 833,001 ================================================================ Plan equity per unit $ 69.36 10.21 20.48 30.08 40.20 ================================================================
Assets Fund F Fund G Fund H Loan Fund Total ---------------------------------------------------------------- Investments: Fixed income investments, at cost 537,308 646,568 1,117 0 4,734,733 Group annuity insurance contracts, at contract value 0 0 0 0 50,313,811 Pooled investment funds (cost, $63,472,127) 10,884,049 10,025,537 0 0 71,561,650 Securities of participating employer (cost, $22,643,220) 0 0 0 0 18,581,777 Other Securities (cost, $2,430,211) 0 0 1,069,759 0 1,069,759 Participant loans receivable 0 0 0 7,931,900 7,931,900 ---------------------------------------------------------------- Total investments 11,421,357 10,672,105 1,070,876 7,931,900 154,193,630 Dividends and interest receivable 160 192 16,739 115,040 431,487 Contributions receivable and other 25,044 529 6,995 380,243 524,290 Interfund transfers receivable (payable) (111,954) (99,863) (23,391) (215,595) 0 ---------------------------------------------------------------- Total assets 11,334,607 10,572,963 1,071,219 8,211,588 155,149,407 ================================================================ Liabilities and Plan Equity Other liabilities 18,976 75,204 1,308 0 1,952,541 Plan equity 11,315,631 10,497,759 1,069,911 8,211,588 153,196,866 ---------------------------------------------------------------- Total liabilities and plan equity $11,334,607 10,572,963 1,071,219 8,211,588 155,149,407 ================================================================ Number of units 191,008 219,390 20,455 ================================== Plan equity per unit 59.24 47.85 52.31 ==================================
See accompanying notes 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, 1995
Fund A Fund B Fund C Fund D Fund E Fund F ---------------------------------------------------------------------- Net investment income: Dividends $ 590,297 0 0 2,892,143 3,035,211 2,409,941 Interest 15,642 4,599,014 36,897 18,771 40,670 14,078 ---------------------------------------------------------------------- Net investment income 605,939 4,599,014 36,897 2,910,914 3,075,881 2,424,019 Realized gains/(losses) 901,883 0 0 111,744 1,081,927 174,229 Net change in unrealized appreciation on investments 1,677,760 0 0 2,726,812 11,126,677 1,100,934 Contributions: Employer contributions 852,625 2,860,459 64,592 609,985 1,290,239 692,433 Employee contributions 2,757,697 7,381,015 102,217 2,541,017 5,305,673 2,908,670 ---------------------------------------------------------------------- Total contributions 3,610,322 10,241,474 166,809 3,151,002 6,595,912 3,601,103 Participant loan repayments 555,485 1,570,060 16,744 485,329 1,121,031 456,057 Distributions and other (994,377) (5,011,788) (80,485) (644,943) (1,472,141) (571,587) Transfer from plan A 1,602,759 9,479,382 852,637 1,147,496 2,339,258 1,077,097 Plan fees and expenses (65,865) (291,526) (1,895) (47,794) (87,683) (28,190) Loans to participants (934,498) (2,886,601) (22,806) (833,551) (1,985,110) (704,573) Interfund transfers (4,315,119) 3,335,355 (3,327,706) 1,674,192 2,985,928 2,690,572 ---------------------------------------------------------------------- Net changes in plan equity 2,644,289 21,035,370 (2,359,805)10,681,201 24,781,680 10,219,661 Plan equity at beginning of period 19,182,895 51,477,678 2,359,805 15,591,141 33,490,458 11,315,631 ---------------------------------------------------------------------- Plan equity at end of period $ 21,827,184 72,513,048 0 26,272,342 58,272,138 21,535,292 ======================================================================
Fund G Fund H Fund I Fund J Fund K Loan Fund Total ------------------------------------------------------------------------ Net investment income: Dividends 878,367 11,852 0 0 0 0 9,817,811 Interest 9,385 0 0 0 0 663,637 5,398,094 ------------------------------------------------------------------------ Net investment income 887,752 11,852 0 0 0 663,637 15,215,905 Realized gains/(losses) (81,314) (404,454) 3,554 15,330 1,616 0 1,804,515 Net change in unrealized appreciation on investments 923,695 397,674 55,557 20,209 27,686 0 18,057,004 Contributions: Employer contributions 637,377 0 46,512 31,774 7,953 0 7,093,949 Employee contributions 2,623,473 0 213,966 200,321 55,961 0 24,090,010 ----------------------------------------------------------------------- Total contributions 3,260,850 0 260,478 232,095 63,914 0 31,183,959 Participant loan repayments 396,807 3,655 11,706 3,972 4,943 (4,625,789) 0 Distributions and other (661,005) (42,121) (3,027) (897) (484) (508,480) (9,991,335) Transfer from plan A 924,945 62,414 0 0 0 1,090,529 18,576,517 Plan fees and expenses (21,407) (4,681) 0 0 0 0 (549,041) Loans to participants (569,428) (26,823) (27,106) (7,076) (1,331) 7,998,903 0 Interfund transfers (2,540,379) (1,067,427) 291,350 123,839 149,395 0 0 ----------------------------------------------------------------------- Net changes in plan equity 2,520,516 (1,069,911) 592,512 387,472 245,739 4,618,800 74,297,524 Plan equity at beginning of period 10,497,759 1,069,911 0 0 0 8,211,588 153,196,866 ----------------------------------------------------------------------- Plan equity at end of period 13,018,275 0 592,512 387,472 245,739 12,830,388 227,494,390 =======================================================================
See accompanying notes 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, 1994
Fund A Fund B Fund C Fund D Fund E Fund F ---------------------------------------------------------------------------- Net investment income: Dividends $ 460,922 0 0 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 0 0 6,952 155,174 7,922 Net change in unrealized (depreciation) on investments (3,543,082) 0 0 (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 0 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 0 284,367 Net change in unrealized (depreciation) on investments (1,050,127) (1,220,511) 0 (8,201,675) Contributions: Employer contributions 164,233 (278) 0 1,753,996 Employee contributions 1,978,315 0 0 16,890,990 ----------------------------------------------------------- Total contributions 2,142,548 (278) 0 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) 0 (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 notes to financial statements. 7 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 0 0 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 0 0 70,447 1,109,774 615,749 Net change in unrealized appreciation/ (depreciation) on investments 1,374,522 0 0 412,264 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 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) 0 0 0 0 0 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 0 0 0 0 0 0 period ------------------------------------------------------------------------------ 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 0 0 4,690,135 Interest 2,908 0 472,546 4,684,437 ------------------------------------------------------ Net investment income 794,289 0 472,546 9,374,572 Realized gains 51,622 0 0 2,654,290 Net change in unrealized appreciation/ (depreciation) on investments 1,090,373 (139,941) 0 6,096,871 Contributions: Employer contributions 131,122 0 0 2,248,415 Employee contributions 1,210,112 0 0 19,187,583 ------------------------------------------------------ Total contributions 1,341,234 0 0 21,435,998 Participant loan repayments 248,464 0 (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) 0 0 (238,814) Loans to participants (233,887) (2,663) 4,807,493 0 Transfer from Plan A 5,656,267 (61,549) 8,214,929 134,692,802 Equity transfer to Fund H 0 3,014,323 0 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 notes to financial statements. 8 RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN B NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995 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 fixed income investments, 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. RECLASSIFICATION Certain 1994 financial statement amounts have been reclassified to conform with the current year's presentation. C. USE OF ESTIMATES The Plan administrator has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with generally accepted accounting principles. Actual results could differ from those estimates. 2. THE PLAN The following description of the Plan reflects all Plan amendments through December 31, 1995, 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 transferred from the Ryder System, Inc. Employee Savings Plan A. Effective January 1, 1995, field hourly employees of Ryder Dedicated Logistics, Inc. and full-time employees of Ryder Driver Leasing, Inc. became eligible for this Plan. Any related 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 9 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 of Ryder System, Inc. (the "Company") must meet certain eligibility requirements related to employment date, age and service hours. In general, salaried employees of the Company and participating affiliates, field hourly employees of Ryder Dedicated Logistics, Inc. and full-time employees of Ryder Driver Leasing, Inc. 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 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, 1995 and 1994 is as follows:
1995 1994 ----- ----- Fund A 3,786 2,548 Fund B 8,006 3,104 Fund C 0 628 Fund D 3,272 2,041 Fund E 4,896 3,202 Fund F 3,146 1,776 Fund G 2,832 1,778 Fund H 0 2,010 Fund I 63 0 Fund J 168 0 Fund K 264 0 Loan Fund 2,328 1,351
3. 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. Participants may transfer among funds on a daily basis. Prior to April 17, 1995, earnings were 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 10 accounts generally continue for a period of two to five years after their inception. During 1995 and 1994, the yield on open funding contracts ranged from 4.89% to 9.05% for both years. 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 were merged into Fund B and this fund was 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. 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 US 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 were transferred to the Templeton Foreign Fund. All investments in the Templeton World Fund have been discontinued. Like the Templeton World Fund, the Templeton Foreign Fund's objective is long-term capital growth. The Templeton Foreign Fund maintains a flexible investment policy and can invest in all types of securities in any foreign country, developed or undeveloped. Investment Fund H ("Fund H") - Fund H was invested in Aviall, Inc. Common stock and was a frozen fund. Participants could not contribute to nor transfer into the fund. Participants could transfer assets from Fund H to any other investment fund of the Plan. Monies remaining in the fund at December 31, 1995, were liquidated and reinvested in Fund A. Investment Fund I ("Fund I") - Effective April 1, 1995, the Life Solutions Growth Fund managed by State Street Bank was added as an investment option in the Plan. This 11 fund's primary objective is price appreciation; income is secondary. The typical allocation (subject to current market conditions) is 65% US equities, 15% international equities and 20% bonds. Investment Fund J ("Fund J") - Effective April 1, 1995, the Life Solutions Balanced Growth Fund managed by State Street Bank was added as an investment option in the Plan. This fund's primary objective is to provide both current income and opportunities for price appreciation. The typical allocation (subject to current market conditions) is 50% US equities, 10% international equities and 40% bonds. Investment Fund K ("Fund K") - Effective April 1, 1995, the Life Solutions Income & Growth Fund managed by State Street Bank was added as an investment option in the Plan. This fund's primary objective is to provide a high level of income and more limited opportunities for price appreciation. The typical allocation (subject to current market conditions) is 35% US equities, 5% international equities and 60% bonds. 4. 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. Effective April 1, 1995, the Company matches 50% of the employee's annual contribution not to exceed the greater of (1) 50% of the first $1,200 in contributions for any plan year, or, (2) 50% of the first 3% of the employee's compensation for any plan year. 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. 5. 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 1995 and 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. 12
1995 1994 -------- ------- Fund A $ 23,394 49,221 Fund B 119,839 205,931 Fund C 0 34,788 Fund D 9,538 23,353 Fund E 16,587 63,623 Fund F 9,310 34,909 Fund G 11,090 25,947 Fund H 0 3,527 Fund I 4,637 36,088 Fund J 3,393 0 Fund K 0 0 Loan Fund 4,334 0 -------- ------- Total $202,122 477,387 ======== =======
6. 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. 7. DISTRIBUTIONS TO AVIALL 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. 8. 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. 13 9. 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. 10. 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. The Company requested in March, 1995 a tax determination letter from the IRS for the Ryder System, Inc. Employee Savings Plan B but has not yet received a response. 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. 11. 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. 14 12. 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, 1995:
NET AGGREGATE AGGREGATE REALIZED PROCEEDS COST GAIN/(LOSS) --------- ----------- ----------- Fund A $ 3,052,947 2,151,064 901,883 Fund D 1,057,007 945,263 111,744 Fund E 3,158,219 2,076,292 1,081,927 Fund F 1,021,856 847,627 174,229 Fund G 15,406,810 15,488,124 (81,314) Fund H 1,323,316 1,727,770 (404,454) Fund I 67,853 64,299 3,554 Fund J 410,114 394,784 15,330 Fund K 36,743 35,127 1,616 ----------- ---------- --------- $25,534,865 23,730,350 1,804,515 =========== ========== ========= 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 =========== ========== =========
15 13. SUBSEQUENT EVENTS The change in net unrealized gains or losses arising in the various funds of the Plan after December 31, 1995, and prior to May 1, 1996, are as follows:
UNREALIZED UNREALIZED NET CHANGE IN APPRECIATION APPRECIATION UNREALIZED AT DECEMBER 31, 1995 AT APRIL 30, 1996 APPRECIATION -------------------- ----------------- ------------------- Fund A $(3,346,461) 221,755 3,568,216 Fund B 0 0 0 Fund C 0 0 0 Fund D 2,532,836 3,949,852 1,417,016 Fund E 19,211,210 25,334,066 6,122,856 Fund F 1,896,818 3,601,281 1,704,463 Fund G 326,777 1,280,955 954,178 Fund H 0 0 0 Fund I 55,557 88,097 32,540 Fund J 20,209 36,720 16,511 Fund K 27,686 27,823 137 Loan Fund 0 0 0 ----------- ---------- ---------- $20,724,632 34,540,549 13,815,917 =========== ========== ==========
16 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, 1995 Directed Account Short-Term Investment Fund 9,903,184 9,903,184 9,903,184 0 Fund A 834,304 23,995,480 20,649,019 (3,346,461) Fund B 65,086,146 65,086,146 65,086,146 0 Fund C 0 0 0 0 Fund D 2,237,860 23,403,960 25,936,796 2,532,836 Fund E 3,771,701 38,307,233 57,518,443 19,211,210 Fund F 713,740 19,329,814 21,226,632 1,896,818 Fund G 1,377,164 12,315,589 12,642,366 326,777 Fund H 0 0 0 0 Fund I 50,671 535,986 591,543 55,557 Fund J 33,905 365,832 386,041 20,209 Fund K 23,666 237,702 265,388 27,686 Loans 12,643,324 12,643,324 12,643,324 0 ------------------------- 206,124,250 226,848,882 20,724,632 ------------------------- AT DECEMBER 31, 1994 Directed Account Short-Term Investment Fund 4,734,733 4,734,733 4,734,733 0 Fund A 831,632 22,643,220 18,581,777 (4,061,443) Fund B 50,313,811 50,313,811 50,313,811 0 Fund C 2,248,172 2,248,172 2,248,172 0 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) Fund I 0 0 0 0 Fund J 0 0 0 0 Fund K 0 0 0 0 Loans 7,931,900 7,931,900 7,931,900 0 ------------------------- 151,526,002 154,193,630 2,667,628 ------------------------- ------------ Net appreciation included in statement of income and changes in plan equity 18,057,004 ============
17 RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN B SCHEDULE II -- SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1995
PROCEEDS -------- Transfer from Plan A Fund B: Interest Income Fund $9,479,382 Loans to participants Loan Fund: $7,998,903
18 Independent Auditors' Consent The Participants and Administrator Ryder System, Inc. Employee Savings Plan B: We consent to incorporation by reference in the Registration Statement (No. 33-58003) on Form S-8 of Ryder System, Inc. covering the Ryder System, Inc. Employee Savings Plan B, of our report dated June 14, 1996, relating to the statements of financial position with fund information of the Ryder System, Inc. Employee Savings Plan B as of December 31, 1995 and 1994, and the related statements of income and changes in plan equity with fund information for each of the years in the three-year period ended December 31, 1995, and related schedules of investments as of December 31, 1995 and 1994, and schedule of reportable transactions for the year ended December 31, 1995, which report appears in the December 31, 1995 annual report on Form 11-K of the Ryder System, Inc. Employee Savings Plan B filed by Ryder System, Inc. /s/ KPMG PEAT MARWICK LLP Miami, Florida June 27, 1996 19 REQUIRED INFORMATION Financial Statements Independent Auditors' Report Statement of Financial Position, with Fund Information, as of December 31, 1995 and 1994 Statement of Income & Changes in Plan Equity, with Fund Information, for the years ending December 31, 1995, 1994, and 1993 Notes to Financial Statements Exhibits Schedule I - Schedule of Investments as of December 31, 1995 and 1994 Schedule II - Schedule of Reportable Transactions for the year ended December 31, 1995 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: July 2, 1996 By /s/ J. Ernest Riddle -------------------------------------------------- J. Ernest Riddle Member - Retirement Committee President - International Division -----END PRIVACY-ENHANCED MESSAGE-----