CRH Americas 401(k) PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 2018 and 2017
NOTE 1 - DESCRIPTION OF PLAN (Continued)
Notes Receivable from Participants: Participants may borrow from their pretax and rollover accounts a minimum of $1,000 up to a maximum of $50,000 or 50% of their pretax and rollover account balance, whichever is less. The loans are secured by the balance in the participant’s account. The interest rate charged to the participant on a loan is updated quarterly and effective on the first business day of the next calendar quarter. The rate is based on the Reuters prime rate with specific deltas. The delta rate is one percent added to, or subtracted from, the prime rate. Principal and interest are paid through payroll deductions.
Forfeitures: Participant forfeitures of Company profit sharing contributions are used to offset Plan expenses or future Company profit sharing contributions. For the Plan year ended December 31, 2018, $2,400,000 of forfeited profit sharing contributions were used to offset the funding of the profit sharing contribution for the prior Plan year reflected in the financial statements.
As of December 31, 2018, and 2017, the forfeiture account balance was $1,541,094 and $1,451,953, respectively.
Plan Mergers: There were mergers of four defined contribution plans; the Ash Grove Cement Company 401(k) Savings Plan, the Ash Grove Hourly 401(k) Savings Plan, the Lyman-Richey 401(k) Plan and the American Cement Company, LLC 401(k) plan effective December 31, 2018 with net assets of $134,098,960, $38,326,520, $28,323,292 and $3,547,853 respectively. The additional balance forward transfers of brokerage link and loan transfers in the amount of $2,079,295 are associated with the Ash Grove Plan mergers.
Subsequent Mergers: There was one subsequent merger of the EOCN Company 401(k) and Profit Sharing Plan that was effective on June 1, 2019 with assets of $4,917,903.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting: The financial statements of the Plan are prepared under the accrual basis of accounting.
Cash: Cash consists of highly liquid investments with an original maturity of three months or less.
Investment Valuation and Income Recognition: The Plan’s investments are reported at fair value as further described in Note 4. Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Net appreciation (depreciation) includes the Plan’s gains and losses on investments bought and sold as well as held during the year.
Notes Receivable from Participants: Notes receivable from participants are reported at their unpaid principal balance plus any accrued but unpaid interest, with no allowance for credit losses, as repayments of principal and interest are received through payroll deductions and the notes are collateralized by the participants’ account balances.
Payment of Benefits: Benefits are recorded when paid.
Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Plan administrator to make estimates and assumptions that affect certain reported amounts and disclosures, and actual results may differ from these estimates.
(Continued)
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