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Independent Auditors' Report | 2 |
INDEPENDENT AUDITORS' REPORT
To the Administrative Committee of Vulcan Materials Company
Thrift Plan for Salaried Employees:
We have audited the accompanying statements of net assets available for benefits of the Vulcan Materials Company Thrift Plan for Salaried Employees (the "Plan") as of December 31, 2002 and 2001, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. 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, such financial statements present fairly, in all material respects, the net assets available for benefits of the Plan at December 31, 2002 and 2001, and the changes in net assets available for benefits for the years then ended in conformity with accounting principles generally accepted in the United States of America.
/s/ DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
Birmingham, Alabama
June 13, 2003
VULCAN MATERIALS COMPANY | ||
ASSETS | 2002 | 2001 |
INVESTMENTS [Cost of $258,807,264 (2002) |
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VULCAN MATERIALS COMPANY | ||
ADDITIONS (DEDUCTIONS) TO NET ASSETS |
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INVESTMENT INCOME (LOSS): |
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DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO: |
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VULCAN MATERIALS COMPANY
THRIFT PLAN FOR SALARIED EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001
1. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||
General - The financial statements of the Vulcan Materials Company Thrift Plan for Salaried Employees (the "Plan") have been prepared on the accrual basis of accounting. All assets of the Plan are held by the Northern Trust Company of Chicago, Illinois (the "Trustee"). Vulcan Materials Company (the "Company") pays the administrative costs of the Plan, including the Trustee's fees and charges. | |||||||||||
2. | DESCRIPTION OF THE PLAN | ||||||||||
General - The Plan, established effective January 1, 1965 and most recently restated effective January 1, 2002, provides for accumulation of savings, including ownership of common stock of the Company, for salaried employees of the Company and its participating subsidiaries, Vulcan Gulf Coast Materials, Inc., RECO Transportation, LLC., Callaway Chemical Company, Vulcan Chemical Technologies, Inc., Vulcan Aggregates Co., LLC, Vulcan Construction Materials, LP, Vulcan Construction Materials, Inc., Vulcan Materials Finance Company, Tarmac Mid-Atlantic, Inc., Palomar Transit Mix, Inc., Azusa Rock, Inc., Triangle Rock Products, Inc., Reliance Transport Company, Western Environmental Contracting, CalMat Company, CalMat of New Mexico and CalMat of Central California (collectively, the "Participating Companies") through voluntary payroll deductions and contributions by the Participating Companies. | |||||||||||
3. | NET REALIZED INVESTMENT GAINS | ||||||||||
Aggregate | Aggregate | Net Realized | |||||||||
2002 |
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4. | INVESTMENTS | ||||||||||
The Plan's investment assets consist of an interest in one of the investment accounts of the Vulcan Materials Company Master Trust ("Master Trust") administered by Northern Trust Company. Use of the Master Trust permits the commingling of investment assets of a number of employee benefit plans of the Participating Companies. Although the assets are commingled, the Company maintains supporting records for the purpose of allocating the investment assets and the related net earnings to the various participating employee benefit plans. | |||||||||||
| 2002 | 2001 | |||||||||
The net assets of the Master Trust at December 31, 2002 and 2001 are summarized as follows: | |||||||||||
| 2002 | 2001 | |||||||||
The total investment income (loss) by type of the Master Trust for the years ended December 31, 2002 and 2001 is summarized as follows: | |||||||||||
| 2002 | 2001 | |||||||||
Investments held by the Plan at December 31, 2002 and 2001 and changes in unrealized appreciation (depreciation) of investments for the years then ended are summarized below: | |||||||||||
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| Market | Appreciation | ||||||||
5. | INVESTMENT PROGRAM | ||||||||||
All contributions of Participating Companies are invested in the fund which consists of the Company's common stock, except that retired or active employees over age 55 or disabled employees may transfer Company matching funds to the other investment funds. With respect to investment alternatives (1) the short-term money market fund, (2) the intermediate-term fixed income fund, (3) S&P 500 index fund, (4) the large-cap value index fund, (5) the small-cap value index fund, (6) the large-cap growth index fund, (7) the small-cap growth index fund, (8) the international equity fund, (9) the Vulcan Materials Company common stock fund, and (10) through (14) the balanced funds, investment managers have been appointed whose duty it is to advise the Trustee as to particular investments to be made. Included in the investment alternatives is a Select Retirement Account (a self-directed brokerage account) which allows the employee to invest in securities outside the standard fund. At December 31, 2 002, the investment managers were as follows: | |||||||||||
(1) Short-term money market fund | The Northern Trust Company | ||||||||||
6. | TAX STATUS | ||||||||||
The Plan obtained its latest determination letter on January 10, 2003, in which the Internal Revenue Service stated that the Plan, as then designed, was in compliance with the applicable requirements of the Internal Revenue Code. Therefore, no provision for income taxes has been included in the Plan's financial statements. |
SIGNATURES | |
THE PLAN. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustee (or other person who administers the employee benefit plan) has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. | |
| VULCAN MATERIALS COMPANY |