11-K 1 h16314e11vk.txt COOPER CAMERON CORP. - IND. ACCOUNT RET. PLAN SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 11-K ANNUAL REPORT [x] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2003 OR [_] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 1-13884 A. Full title of the Plan and the address of the Plan, if different from that of the issuer named below: INDIVIDUAL ACCOUNT RETIREMENT PLAN FOR BARGAINING UNIT EMPLOYEES AT THE COOPER CAMERON CORPORATION BUFFALO, NEW YORK PLANT B. Name of issuer of the securities held pursuant to the Plan and the address of the principal executive office: COOPER CAMERON CORPORATION 1333 West Loop South, Suite 1700 Houston, Texas 77027 FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE Individual Account Retirement Plan for Bargaining Unit Employees at the Cooper Cameron Corporation, Buffalo, New York Plant December 31, 2003 and 2002 and year ended December 31, 2003 Individual Account Retirement Plan for Bargaining Unit Employees at the Cooper Cameron Corporation, Buffalo, New York Plant Financial Statements and Supplemental Schedule December 31, 2003 and 2002 and year ended December 31, 2003 CONTENTS Report of Independent Registered Public Accounting Firm................................................. 1 Audited Financial Statements Statements of Net Assets Available for Benefits......................................................... 2 Statement of Changes in Net Assets Available for Benefits............................................... 3 Notes to Financial Statements........................................................................... 4 Supplemental Schedule Schedule H, Line 4(a) - Schedule of Delinquent Participant Contributions................................ 13 Signature............................................................................................... 14 Consent of Independent Registered Public Accounting Firm................................................ 15
Report of Independent Registered Public Accounting Firm Plans Administration Committee Individual Account Retirement Plan for Bargaining Unit Employees at the Cooper Cameron Corporation, Buffalo, New York Plant We have audited the accompanying statements of net assets available for benefits of the Individual Account Retirement Plan for Bargaining Unit Employees at the Cooper Cameron Corporation, Buffalo, New York Plant, as of December 31, 2003 and 2002, and the related statement of changes in net assets available for benefits for the year ended December 31, 2003. 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 the standards of the Public Company Accounting Oversight Board (United States). 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 at December 31, 2003 and 2002, and the changes in its net assets available for benefits for the year ended December 31, 2003, in conformity with U.S. generally accepted accounting principles. Our audits were performed for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedule of delinquent participant contributions for the year ended December 31, 2003, is presented for purposes of additional analysis and is not a required part of the financial statements but is 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 supplemental schedule is the responsibility of the Plan's management. The supplemental schedule has been subjected to the auditing procedures applied in our audits of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. /s/ Ernst & Young LLP Houston, Texas June 7, 2004 1 Individual Account Retirement Plan for Bargaining Unit Employees at the Cooper Cameron Corporation, Buffalo, New York Plant Statements of Net Assets Available for Benefits
DECEMBER 31 2003 2002 -------------------------------- ASSETS Employer contributions receivable $ 37,105 $ 30,843 Plan interest in Cooper Cameron Corporation Master Trust for Defined Contribution Plans 11,264,269 8,876,906 -------------------------------- Net assets available for benefits $ 11,301,374 $ 8,907,749 ================================
See accompanying notes. 2 Individual Account Retirement Plan for Bargaining Unit Employees at the Cooper Cameron Corporation, Buffalo, New York Plant Statement of Changes in Net Assets Available for Benefits Year ended December 31, 2003 Additions: Employer contributions $ 410,864 Employee contributions 517,290 Rollovers 127 Net investment gain from Cooper Cameron Corporation Master Trust for Defined Contribution Plans, net of expenses 1,728,032 --------------- Total additions 2,656,313 Deductions: Benefits paid to participants 262,688 --------------- Total deductions 262,688 --------------- Net increase 2,393,625 Net assets available for benefits at: Beginning of year 8,907,749 --------------- End of year $ 11,301,374 ===============
See accompanying notes. 3 Individual Account Retirement Plan for Bargaining Unit Employees at the Cooper Cameron Corporation, Buffalo, New York Plant Notes to Financial Statements December 31, 2003 1. DESCRIPTION OF THE PLAN The Individual Account Retirement Plan for Bargaining Unit Employees at the Cooper Cameron Corporation, Buffalo, New York Plant (the "Plan"), is a profit sharing plan which provides payments to eligible employees of Cooper Cameron Corporation and certain subsidiaries (the "Company") at termination, retirement, death, or disability. All union employees of the Company belonging to Local Lodge No. 330, District 76 of the International Association of Machinists and Aerospace Workers, are eligible for participation. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"). The Company contributes to each participant's account monthly based on hours actively worked and specific contribution rates as defined in the plan document. This contribution is also paid on each hour of overtime, vacation, or holiday, but excludes sick time for which the employee may be paid. Company contributions are made to the investment fund options that the employee elects. Vesting in employer contributions is on a graduated scale with 100% at five years. Amounts which are forfeited due to a participant's termination of employment prior to vesting in employer contributions made on the participant's behalf are used to reduce the required Company contribution in subsequent periods. Upon termination of the Plan, all remaining forfeitures are to be allocated to the participant accounts. The Plan allows for employee contributions based on hours actively worked and elected contribution rates. Electing to contribute is completely voluntary, and these contributions are immediately 100% vested. Participants may elect to have their contributions allocated in 1% increments to one or more of the investment fund options offered by the Plan. Allocations among the investment accounts may be changed at the participant's discretion on a daily basis. 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 would become 100% vested in their employer contributions. 4 Individual Account Retirement Plan for Bargaining Unit Employees at the Cooper Cameron Corporation, Buffalo, New York Plant Notes to Financial Statements (continued) 1. DESCRIPTION OF THE PLAN (CONTINUED) More detailed information about the Plan, including the funding, vesting, and benefit provisions, is contained in the Summary Plan Description. A copy of this pamphlet is available at the Company's corporate office. 2. SIGNIFICANT ACCOUNTING PRINCIPLES ACCOUNTING PRINCIPLES The accompanying financial statements of the Plan have been prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates that affect amounts reported in the financial statements and accompanying notes. Such estimates could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein. Benefit payments to participants are recorded upon distribution. INVESTMENTS The Plan's investments are held in the Cooper Cameron Corporation Master Trust for Defined Contribution Plans (the "Master Trust"). Nationwide Trust Company is the trustee. The Plan participates in only certain investment accounts of the Master Trust. The following is a summary of those investment accounts and the Plan's beneficial interest in those investment accounts as of December 31, 2003 and 2002.
BENEFICIAL INTEREST DECEMBER 31 2003 2002 ----------------------- Cooper Cameron Stock Fund 0.81% 0.59% Fidelity Growth Company Fund 100.00 100.00 PRIMCO Stable Value Fund 3.79 2.80
5 Individual Account Retirement Plan for Bargaining Unit Employees at the Cooper Cameron Corporation, Buffalo, New York Plant Notes to Financial Statements (continued) 2. SIGNIFICANT ACCOUNTING PRINCIPLES (CONTINUED)
BENEFICIAL INTEREST DECEMBER 31 2003 2002 ---------------------- State Street Bank S&P 500 Fund 2.01% -% Barclays Global Investors Equity Index Fund - 1.63 PIMCO Total Return A Fund - 4.59 PIMCO Total Return Administrative Shares Fund 4.76 4.59 Washington Mutual Investors Fund 4.49 4.40 MFS Massachusetts Investors Growth A Fund 3.10 3.28 Franklin Balance Sheet Investment A Fund 4.26 4.87 Lord Abbett Developing Growth A Fund 3.67 3.88 EuroPacific Growth Fund 4.16 4.20
The Master Trust's security transactions are accounted for on the date the securities are purchased or sold. Interest income is recorded as earned. Dividends are recorded as of the ex-dividend date. The Master Trust's investments in securities traded on the exchanges are valued at the last reported sale price on the valuation date. Money market funds are stated at cost, which approximates fair value. Investment contracts within the PRIMCO Stable Value Fund, with varying contract rates and maturity dates, are fully benefit responsive and are therefore stated at contract value. Contract value represents cost plus accrued income. Although it is management's intention to hold the investment contracts until maturity, certain investment contracts provide for adjustments to contract value for withdrawals made prior to maturity. The INVESCO Group Trust for Employee Benefit Plans is a 103-12 investment entity, in which the assets of multiple qualified plans are invested by the sponsor, INVESCO, and is comprised of bank-issued synthetic contracts. 6 Individual Account Retirement Plan for Bargaining Unit Employees at the Cooper Cameron Corporation, Buffalo, New York Plant Notes to Financial Statements (continued) 2. SIGNIFICANT ACCOUNTING PRINCIPLES (CONTINUED) RISKS AND UNCERTAINTIES The Master Trust provides for various investments which, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility risks. Due to the level of risk associated with certain investment securities, it is likely that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the statements of net assets available for benefits and participant account balances. 3. SEPARATE INVESTMENT ACCOUNTS OF THE COOPER CAMERON CORPORATION MASTER TRUST The purpose of the Master Trust is the collective investment of the assets of participating employee benefit plans of the Company. Master Trust assets are allocated among participating plans by assigning to each plan those transactions (primarily contributions, participant loan transactions, benefit payments, and certain administrative expenses) which can be specifically identified and by allocating among all plans, in proportion to the fair value of the assets assigned to each plan, the income and expenses resulting from the collective investment of the assets. The Master Trust includes assets of other employee benefit plans in addition to this Plan. 7 Individual Account Retirement Plan for Bargaining Unit Employees at the Cooper Cameron Corporation, Buffalo, New York Plant Notes to Financial Statements (continued) 3. SEPARATE INVESTMENT ACCOUNTS OF THE COOPER CAMERON CORPORATION MASTER TRUST (CONTINUED) The following table presents the fair value of investments for the separate investment accounts of the Master Trust:
MFS COOPER WASHINGTON MASSACHUSETTS CAMERON MUTUAL PRIMCO INVESTORS STOCK INVESTORS STABLE VALUE GROWTH A DECEMBER 31, 2003 FUND FUND FUND FUND -------------------------------------------------------------- Assets: Cash $ 2,194,772 $ - $ - $ - Net unsettled sales of investments 1,260,329 - - - Investments at fair value as determined by quoted market prices: Money market funds 124,167 - - - Cash Management Trust of America - - 1,703,313 - Cooper Cameron Corporation Common Stock 79,793,413 - - - Washington Mutual Investors Fund - 34,342,045 - - MFS Massachusetts Investors Growth A Fund - - - 27,095,921 Fidelity Growth Company Fund - - - - State Street Bank S&P 500 - - - - PIMCO Total Return Administrative Shares Fund - - - - Franklin Balance Sheet Investment A Fund - - - - Lord Abbett Developing Growth A Fund - - - - EuroPacific Growth Fund - - - - Investments at estimated fair value or contract value: Investment contracts - - 3,962,702 - INVESCO Group Trust for Employee Benefit Plans - - 51,091,470 - Real estate - - - - -------------------------------------------------------------- Total investments 79,917,580 34,342,045 56,757,485 27,095,921 -------------------------------------------------------------- Total assets 83,372,681 34,342,045 56,757,485 27,095,921 Liabilities: Other payables 151,260 - - - Net unsettled purchases of investments 219,387 - - - -------------------------------------------------------------- Net assets available to participating plans $ 83,002,034 $ 34,342,045 $ 56,757,485 $ 27,095,921 ============================================================== FIDELITY PIMCO TOTAL STATE STREET GROWTH RETURN REAL ESTATE BANK S&P 500 COMPANY ADMINISTRATIVE DECEMBER 31, 2003 FUND FUND FUND SHARES FUND -------------------------------------------------------------- Assets: Cash $ - $ - $ - $ - Net unsettled sales of investments - - - - Investments at fair value as determined by quoted market prices: Money market funds 555,791 - - - Cash Management Trust of America - - - - Cooper Cameron Corporation Common Stock - - - - Washington Mutual Investors Fund - - - - MFS Massachusetts Investors Growth A Fund - - - - Fidelity Growth Company Fund - - 1,859,891 - State Street Bank S&P 500 - 23,431,470 - - PIMCO Total Return Administrative Shares Fund - - - 37,329,286 Franklin Balance Sheet Investment A Fund - - - - Lord Abbett Developing Growth A Fund - - - - EuroPacific Growth Fund - - - - Investments at estimated fair value or contract value: Investment contracts - - - - INVESCO Group Trust for Employee Benefit Plans - - - - Real estate 238,788 - - - ------------------------------------------------------------- Total investments 794,579 23,431,470 1,859,891 37,329,286 ------------------------------------------------------------- Total assets 794,579 23,431,470 1,859,891 37,329,286 Liabilities: Other payables - - - - Net unsettled purchases of investments - - - - ------------------------------------------------------------- Net assets available to participating plans $ 794,579 $ 23,431,470 $ 1,859,891 $ 37,329,286 ============================================================= FRANKLIN LORD ABBETT BALANCE SHEET DEVELOPING INVESTMENT A GROWTH A EUROPACIFIC DECEMBER 31, 2003 FUND FUND GROWTH FUND TOTAL ------------------------------------------------------------- Assets: Cash $ - $ - $ - $ 2,194,772 Net unsettled sales of investments - - - 1,260,329 Investments at fair value as determined by quoted market prices: Money market funds - - - 679,958 Cash Management Trust of America - - - 1,703,313 Cooper Cameron Corporation Common Stock - - - 79,793,413 Washington Mutual Investors Fund - - - 34,342,045 MFS Massachusetts Investors Growth A Fund - - - 27,095,921 Fidelity Growth Company Fund - - - 1,859,891 State Street Bank S&P 500 - - - 23,431,470 PIMCO Total Return Administrative Shares Fund - - - 37,329,286 Franklin Balance Sheet Investment A Fund 20,827,351 - - 20,827,351 Lord Abbett Developing Growth A Fund - 11,815,487 - 11,815,487 EuroPacific Growth Fund - - 15,341,145 15,341,145 Investments at estimated fair value or contract value: Investment contracts - - - 3,962,702 INVESCO Group Trust for Employee Benefit Plans - - - 51,091,470 Real estate - - - 238,788 ------------------------------------------------------------- Total investments 20,827,351 11,815,487 15,341,145 309,512,240 ------------------------------------------------------------- Total assets 20,827,351 11,815,487 15,341,145 312,967,341 Liabilities: Other payables - - - 151,260 Net unsettled purchases of investments - - - 219,387 ------------------------------------------------------------- Net assets available to participating plans $ 20,827,351 $ 11,815,487 $ 15,341,145 $ 312,596,694 =============================================================
8 Individual Account Retirement Plan for Bargaining Unit Employees at the Cooper Cameron Corporation, Buffalo, New York Plant Notes to Financial Statements (continued) 3. SEPARATE INVESTMENT ACCOUNTS OF THE COOPER CAMERON CORPORATION MASTER TRUST (CONTINUED) The following table presents the fair value of investments for the separate investment accounts of the Master Trust:
COOPER WASHINGTON MFS CAMERON MUTUAL PRIMCO MASSACHUSETTS STOCK INVESTORS STABLE VALUE INVESTORS REAL ESTATE DECEMBER 31, 2002 FUND FUND FUND GROWTH A FUND FUND ---------------------------------------------------------------------------- Assets: Cash $ 741,715 $ - $ - $ - $ - Net unsettled sales of investments 63,504 - - - - Investments at fair value as determined by quoted market prices: Money market funds 207,964 - - - 608,745 Cash Management Trust of America - - 2,119,566 - - Cooper Cameron Corporation Common Stock 83,466,086 - - - - Washington Mutual Investors Fund - 25,461,905 - - - MFS Massachusetts Investors Growth A Fund - - - 21,587,483 - Barclays Global Investors Equity Index Fund - - - - - PIMCO Total Return A Fund - - - - - PIMCO Total Return Administrative Shares Fund - - - - - Fidelity Growth Company Fund - - - - - Franklin Balance Sheet Investment A Fund - - - - - Lord Abbett Developing Growth A Fund - - - - - EuroPacific Growth Fund - - - - - Investments at estimated fair value or contract value: Investment contracts - - 27,320,820 - - INVESCO Group Trust for Employee Benefit Plans - - 32,267,564 - - Real estate - - - - 238,788 ---------------------------------------------------------------------------- Total investments 83,674,050 25,461,905 61,707,950 21,587,483 847,533 ---------------------------------------------------------------------------- Total assets 84,479,269 25,461,905 61,707,950 21,587,483 847,533 Liabilities: Net unsettled purchases of investments 708,968 - - - - ---------------------------------------------------------------------------- Net assets available to participating plans $ 83,770,301 $ 25,461,905 $ 61,707,950 $ 21,587,483 $ 847,533 ============================================================================ BARCLAYS GLOBAL PIMCO TOTAL INVESTORS RETURN EQUITY INDEX PIMCO TOTAL ADMINISTRATIVE FIDELITY GROWTH DECEMBER 31, 2002 FUND RETURN A FUND SHARES FUND COMPANY FUND --------------------------------------------------------------- Assets: Cash $ - $ - $ - $ - Net unsettled sales of investments - - - - Investments at fair value as determined by quoted market prices: Money market funds - - - - Cash Management Trust of America - - - - Cooper Cameron Corporation Common Stock - - - - Washington Mutual Investors Fund - - - - MFS Massachusetts Investors Growth A Fund - - - - Barclays Global Investors Equity Index Fund 19,851,519 - - - PIMCO Total Return A Fund - 19,763,056 - - PIMCO Total Return Administrative Shares Fund - - 17,822,277 - Fidelity Growth Company Fund - - - 1,386,418 Franklin Balance Sheet Investment A Fund - - - - Lord Abbett Developing Growth A Fund - - - - EuroPacific Growth Fund - - - - Investments at estimated fair value or contract value: Investment contracts - - - - INVESCO Group Trust for Employee Benefit Plans - - - - Real estate - - - - -------------------------------------------------------------- Total investments 19,851,519 19,763,056 17,822,277 1,386,418 -------------------------------------------------------------- Total assets 19,851,519 19,763,056 17,822,277 1,386,418 Liabilities: Net unsettled purchases of investments - - - - -------------------------------------------------------------- Net assets available to participating plans $ 19,851,519 $ 19,763,056 $ 17,822,277 $ 1,386,418 ============================================================== FRANKLIN LORD ABBETT BALANCE SHEET DEVELOPING INVESTMENT A GROWTH A EUROPACIFIC DECEMBER 31, 2002 FUND FUND GROWTH FUND TOTAL ------------------------------------------------------------ Assets: Cash $ - $ - $ - $ 741,715 Net unsettled sales of investments - - - 63,504 Investments at fair value as determined by quoted market prices: Money market funds - - - 816,709 Cash Management Trust of America - - - 2,119,566 Cooper Cameron Corporation Common Stock - - - 83,466,086 Washington Mutual Investors Fund - - - 25,461,905 MFS Massachusetts Investors Growth A Fund - - - 21,587,483 Barclays Global Investors Equity Index Fund - - - 19,851,519 PIMCO Total Return A Fund - - - 19,763,056 PIMCO Total Return Administrative Shares Fund - - - 17,822,277 Fidelity Growth Company Fund - - - 1,386,418 Franklin Balance Sheet Investment A Fund 14,252,382 - - 14,252,382 Lord Abbett Developing Growth A Fund - 6,818,756 - 6,818,756 EuroPacific Growth Fund - - 10,406,841 10,406,841 Investments at estimated fair value or contract value: Investment contracts - - - 27,320,820 INVESCO Group Trust for Employee Benefit Plans - - - 32,267,564 Real estate - - - 238,788 ------------------------------------------------------------ Total investments 14,252,382 6,818,756 10,406,841 283,580,170 ------------------------------------------------------------ Total assets 14,252,382 6,818,756 10,406,841 284,385,389 Liabilities: Net unsettled purchases of investments - - - 708,968 ------------------------------------------------------------ Net assets available to participating plans $ 14,252,382 $ 6,818,756 $ 10,406,841 $ 283,676,421 ============================================================
9 Individual Account Retirement Plan for Bargaining Unit Employees at the Cooper Cameron Corporation, Buffalo, New York Plant Notes to Financial Statements (continued) 3. SEPARATE INVESTMENT ACCOUNTS OF THE COOPER CAMERON CORPORATION MASTER TRUST (CONTINUED) Investment income and net appreciation (depreciation) in fair value of investments (including gains and losses on investments bought and sold as well as held during the year) for the separate investment accounts of the Master Trust are as follows:
NET APPRECIATION INTEREST AND YEAR ENDED DECEMBER 31, 2003 (DEPRECIATION) DIVIDENDS TOTAL --------------------------------------------------- Cooper Cameron Stock Fund $ (4,883,170) $ 1,072 $ (4,882,098) Fidelity Growth Company Fund 550,717 - 550,717 PRIMCO Stable Value Fund - 2,600,472 2,600,472 Scudder Institutional Equity 500 Index Fund (18) - (18) PIMCO Total Return A Fund 213,835 402,533 616,368 PIMCO Total Return Administrative Shares Fund (70,032) 1,401,322 1,331,290 Barclays Global Investors Equity Index Fund 4,364,027 - 4,364,027 Washington Mutual Investors Fund 5,998,021 827,910 6,825,931 MFS Massachusetts Investors Growth A Fund 4,956,525 - 4,956,525 Franklin Balance Sheet Investment A Fund 4,273,218 208,745 4,481,963 Lord Abbett Developing Growth A Fund 2,921,328 - 2,921,328 EuroPacific Growth Fund 3,442,061 158,298 3,600,359 Real Estate Fund - 3,338 3,338 State Street Bank S&P 500 Index Fund 940,713 - 940,713 --------------------------------------------------- $ 22,707,225 $ 5,603,690 $ 28,310,915 ===================================================
Administrative expenses paid by the Master Trust and allocated to the participating plans totaled $542,630 for the year ended December 31, 2003. 10 Individual Account Retirement Plan for Bargaining Unit Employees at the Cooper Cameron Corporation, Buffalo, New York Plant Notes to Financial Statements (continued) 3. SEPARATE INVESTMENT ACCOUNTS OF THE COOPER CAMERON CORPORATION MASTER TRUST (CONTINUED) PRIMCO STABLE VALUE FUND ("STABLE VALUE FUND") The Stable Value Fund invests in actively managed synthetic bank and insurance company investment contracts ("SICs") and in guaranteed investment contracts ("GICs"). The GICs are promises by insurance companies or banks to repay the principal plus accrued income at contract maturity. SICs differ from GICs in that the assets supporting the SICs are owned by the Master Trust. A bank or insurance company issues a wrapper contract that allows participant-directed transactions to be made at contract value. Wrapper contracts are valued as the difference between the fair value of the supporting assets and the contract value. The assets supporting the SICs owned by the Master Trust are comprised primarily of a U.S. Treasury Note and 103-12 investment entities with a total fair value of $54,998,649 and $60,119,483 at December 31, 2003 and 2002, respectively. The contract values of the SICs at December 31, 2003 and 2002, are $52,820,142 and $57,364,691, respectively. Interest crediting rates on the GICs in the Stable Value Fund are generally determined at the time of purchase. Interest crediting rates on the SICs are reset periodically based on the yields of the supporting assets. At December 31, 2003, the interest crediting rates for all investment contracts range from 1.46% to 9.86%. At December 31, 2002, the interest crediting rates for all investment contracts range from 2.11% to 9.52%. For 2003 and 2002, the average annual yield for the investment contracts in the Stable Value Fund was 4.16% and 5.06%, respectively. At December 31, 2003 and 2002, fair value of the investment contracts in the Stable Value Fund was estimated to be approximately 104% and 105% of contract value, respectively. Fair value of the GICs is estimated by discounting the weighted average of the Stable Value Fund's cash flows at the then-current interest crediting rate for a comparable maturity investment contract. Fair value of the SICs is based on the market value of the assets supporting the SICs. 11 Individual Account Retirement Plan for Bargaining Unit Employees at the Cooper Cameron Corporation, Buffalo, New York Plant Notes to Financial Statements (continued) 4. INCOME TAX STATUS The Plan has been designed to meet the requirements of the Internal Revenue Code ("IRC") under Section 401(a) and, therefore, the related trust is exempt from taxation. A favorable determination letter was received from the Internal Revenue Service on September 3, 2002. Since receiving the determination letter, the Plan has been amended. Once qualified, the Plan is required to operate in conformity with the IRC to maintain its qualification. The plan administrator believes the Plan is being operated in compliance with the applicable requirements of the IRC and, therefore, believes that the Plan, as amended, is qualified and the related trust is tax exempt. 5. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500 The following is a reconciliation of net assets available for benefits per the financial statements at December 31, 2003 to Form 5500:
2003 --------------- Net assets available for benefits per the financial statements $ 11,301,374 Amounts allocated to withdrawing participants (9,963) --------------- Net assets available for benefits per the Form 5500 $ 11,291,411 ===============
The following is a reconciliation of benefits paid to participants per the financial statements for the year ended December 31, 2003, to Form 5500: Benefits paid to participants per the financial statements $ 262,688 Add: Amounts allocated to withdrawing participants at December 31, 2003 9,963 --------------- Benefits paid to participants per Form 5500 $ 272,651 ===============
Amounts allocated to withdrawing participants are recorded on the Form 5500 for benefit claims that have been processed and approved for payment prior to December 31, 2003, but not yet paid as of that date. 12 Supplemental Schedule Individual Account Retirement Plan for Bargaining Unit Employees at the Cooper Cameron Corporation, Buffalo, New York Plant Schedule H, Line 4(a) - Schedule of Delinquent Participant Contributions EIN: 76-0451843 PN: 005 Year ended December 31, 2003
PARTICIPANT CONTRIBUTIONS TOTAL THAT CONSTITUTES NONEXEMPT TRANSFERRED LATE TO PLAN PROHIBITED TRANSACTIONS ------------------------ --------------------------------- $100 $100
Note: Delinquent participant contributions of $100 were corrected outside of the Voluntary Fiduciary Compliance Program in August 2003 13 SIGNATURES The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the members of the Plan Administration Committee have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. INDIVIDUAL ACCOUNT RETIREMENT PLAN FOR BARGAINING UNIT EMPLOYEES AT THE COOPER CAMERON CORPORATION BUFFALO, NEW YORK PLANT /s/ Jane C. Schmitt ----------------------------------------- By: Jane C. Schmitt Member of the Plan Administration Committee Date: June 28, 2004 14 EXHIBIT INDEX
EXHIBIT DESCRIPTION ------- ----------- 23.1 Consent of independent Registered Public Accounting Firm.