Polymer Group
Retirement Savings Plan
Audited Financial Statements
and Other Financial Information
Years ended December 31, 1993 and 1992
Report of Independent Auditors
Polymer Group Retirement Savings Plan
We have audited the accompanying statements of assets available for
plan benefits of the Polymer Group Retirement Savings Plan (formerly
the Capital Accumulation and Savings Plan for Salaried Employees of Day
International Corporation) as of December 31, 1993 and 1992, and the
related statements of changes in assets available for plan 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 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 assets available for plan benefits
of the Plan at December 31, 1993 and 1992, and the changes in its assets
available for plan benefits for the years then ended, 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
assets held for investment as of December 31, 1993, and transactions or
series of transactions in excess of 5% of the current value of plan
assets for the year then ended 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 supplemental schedules have been subjected to the auditing
procedures applied in the audit 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/ Ernst & Young
May 13, 1994
Polymer Group Retirement Savings Plan
Statement of Assets Available for Plan Benefits
December 31, 1993
U.S.
Asset Bond S&P 500 Treasury Tilts & Money M.A. Hanna
Allocation Index Stock Allocation Timing Market Stock
Wellsfunds Wellsfunds Wellsfunds Wellsfunds Wellsfunds Wellsfunds Wellsfunds
------------ ------------ ------------ ------------ ------------ ------------ ------------
Assets
Investments at fair value $6,332,684 $1,364,416 $6,257,440 $10,548,377 $2,075,350 $7,584,959 $13,418,370
Interest receivable 18,345
Employer contribution receivable 433,107 104,106 313,530 86,339 174,568 212,538 $1,653,257
Employee contribution receivable 795 170 477 254 282 463 265
Loans to participants 1,856,547
------------ ------------ ------------ ------------ ------------ ------------ ------------
Assets available for plan benefits $6,766,586 $1,468,692 $6,571,447 $10,634,970 $2,250,200 $9,672,852 $15,071,892
============ ============ ============ ============ ============ ============ ============
See accompanying notes.
Total
------------
Assets
Investments at fair value $47,581,596
Interest receivable 18,345
Employer contribution receivable 2,977,445
Employee contribution receivable 2,706
Loans to participants 1,856,547
------------
Assets available for plan benefits $52,436,639
============
Polymer Group Retirement Savings Plan
Statement of Assets Available for Plan Benefits
December 31, 1992
U.S.
Asset Bond S&P 500 Treasury Tilts & Money
Allocation Index Stock Allocation Timing Market
Fund Fund Fund Fund Fund Fund
------------ ------------ ------------ ------------ ------------ ------------
Assets
Investments at fair value $4,297,253 $1,201,869 $5,076,031 $8,682,951 $1,539,514 $8,514,084
Employer contribution receivable 437,450 104,988 297,466 192,478 157,482 332,679
Employee contribution receivable 20,693 3,359 11,061 8,856 6,103 8,930
Loans to participants 1,210,428
------------ ------------ ------------ ------------ ------------ ------------
Assets available for plan benefits $4,755,396 $1,310,216 $5,384,558 $8,884,285 $1,703,099 $10,066,121
============ ============ ============ ============ ============ ============
See accompanying notes.
M.A. Hanna
Stock
Fund Total
------------ ------------
Assets
Investments at fair value $9,715,744 $39,027,446
Employer contribution receivable $1,604,721 3,127,264
Employee contribution receivable 8,987 67,989
Loans to participants 1,210,428
------------ ------------
Assets available for plan benefits $11,329,452 $43,433,127
============ ============
Polymer Group Retirement Savings Plan
Statement of Changes in Assets Available for Plan Benefits
Year ended December 31, 1993
U.S.
Asset Bond S&P 500 Treasury Tilts & Money
Allocation Index Stock Allocation Timing Market
Wellsfunds Wellsfunds Wellsfunds Wellsfunds Wellsfunds Wellsfunds
------------ ------------ ------------ ------------ ------------ ------------
Additions
Investment income:
Interest $0 $0 $0 $0 $0 $149,028
Dividends 163,833 40,158 75,515 589,596 0 99,988
Contributions:
Day International Corporation 199,687 48,773 142,494 93,955 145,350 100,609
Employees of Day International Corporation 356,159 86,967 254,060 167,456 252,844 179,507
Transfers between accounts 5,776 (3,724) 1,094 (5,119) (1,003) (15,877)
------------ ------------ ------------ ------------ ------------ ------------
725,455 172,174 473,163 845,888 397,191 513,255
Deductions
Benefit payments and withdrawals 49,594 20,736 45,864 213,198 28,783 268,691
Administrative expenses 1,328 355 1,250 843 658 1,637
------------ ------------ ------------ ------------ ------------ ------------
50,922 21,091 47,114 214,041 29,441 270,328
Net realized and unrealized appreciation
(depreciation) in fair value of
investments 160,974 (6,872) 257,200 (82,877) 194,391 0
------------ ------------ ------------ ------------ ------------ ------------
Net additions(deductions) 835,507 144,211 683,249 548,970 562,141 242,927
Assets available for plan benefits
at beginning of year 0 0 0 0 1,703,099 0
Transfers from previously held funds 5,931,079 1,324,481 5,888,198 10,086,000 (15,040) 9,429,925
------------ ------------ ------------ ------------ ------------ ------------
Assets available for plan benefits
at end of year $6,766,586 $1,468,692 $6,571,447 $10,634,970 $2,250,200 $9,672,852
============ ============ ============ ============ ============ ============
See accompanying notes.
U.S.
M.A. Hanna Asset Bond Treasury
Stock Allocation Index S&P 500 Allocation
Fund Fund Fund Stock Fund Fund
------------ ------------ ------------ ------------ ------------
Additions
Investment income:
Interest $0 $0 $0 $0 $0
Dividends 0 0 0 0 0
Contributions:
Day International Corporation 1,709,425 228,114 51,416 160,375 130,126
Employees of Day International Corporation 526,280 385,262 88,142 274,343 222,717
Transfers between accounts 40,306 3,284 (4,228) (2,666) (6,102)
------------ ------------ ------------ ------------ ------------
2,276,011 616,660 135,330 432,052 346,741
Deductions
Benefit payments and withdrawals 480,308 361,462 8,938 45,416 328,202
Administrative expenses 2,396 874 232 879 570
------------ ------------ ------------ ------------ ------------
482,704 362,336 9,170 46,295 328,772
Net realized and unrealized appreciation
(depreciation) in fair value of
investments 1,753,905 448,870 98,536 195,203 1,056,078
------------ ------------ ------------ ------------ ------------
Net additions(deductions) 3,547,212 703,194 224,696 580,960 1,074,047
Assets available for plan benefits
at beginning of year 11,329,452 4,755,396 1,310,216 5,384,558 8,884,285
Transfers from previously held funds 195,228 (5,458,590) (1,534,912) (5,965,518) (9,958,332)
------------ ------------ ------------ ------------ ------------
Assets available for plan benefits
at end of year $15,071,892 $0 $0 $0 $0
============ ============ ============ ============ ============
Money
Market
Fund Total
------------ ------------
Additions
Investment income:
Interest $114,361 $263,389
Dividends 0 969,090
Contributions:
Day International Corporation 109,565 3,119,889
Employees of Day International Corporation 186,052 2,979,789
Transfers between accounts (11,741) 0
------------ ------------
398,237 7,332,157
Deductions
Benefit payments and withdrawals 540,410 2,391,602
Administrative expenses 1,429 12,451
------------ ------------
541,839 2,404,053
Net realized and unrealized appreciation
(depreciation) in fair value of
investments 0 4,075,408
------------ ------------
Net additions(deductions) (143,602) 9,003,512
Assets available for plan benefits
at beginning of year 10,066,121 43,433,127
Transfers from previously held funds (9,922,519) 0
------------ ------------
Assets available for plan benefits
at end of year $0 $52,436,639
============ ============
Polymer Group Retirement Savings Plan
Statement of Changes in Assets Available for Plan Benefits
Year ended December 31, 1992
U.S.
Asset Bond Treasury Tilts & Money
Allocation Index S&P 500 Allocation Timing Market
Fund Fund Stock Fund Fund Fund Fund
------------ ------------ ------------ ------------ ------------ ------------
Additions
Investment income:
Interest $0 $0 $0 $0 $0 $437,152
Contributions:
Day International Corporation 439,685 104,988 301,269 234,334 158,522 333,859
Employees of Day International Corporation 705,716 169,785 489,587 299,610 248,784 404,222
Transfers between accounts 3,463,145 1,017,986 (1,601,587) 2,271,996 1,262,450 (964,918)
------------ ------------ ------------ ------------ ------------ ------------
4,608,546 1,292,759 (810,731) 2,805,940 1,669,756 210,315
Deductions
Benefit payments and withdrawals 65,945 33,016 419,129 946,335 34,350 1,376,313
Administrative expenses 152 47 225 111 40 2,255
------------ ------------ ------------ ------------ ------------ ------------
66,097 33,063 419,354 946,446 34,390 1,378,568
Net realized and unrealized appreciation
(depreciation) in fair value of
investments 212,947 50,520 386,358 507,740 67,733 0
------------ ------------ ------------ ------------ ------------ ------------
Net additions(deductions) 4,755,396 1,310,216 (843,727) 2,367,234 1,703,099 (1,168,253)
Assets available for plan benefits
at beginning of year 0 0 0 0 0 0
Transfers from previously held funds 0 0 6,228,285 6,517,051 0 11,234,374
------------ ------------ ------------ ------------ ------------ ------------
Assets available for plan benefits
at end of year $4,755,396 $1,310,216 $5,384,558 $8,884,285 $1,703,099 $10,066,121
============ ============ ============ ============ ============ ============
See accompanying notes.
M.A. Hanna Guaranteed
Stock Interest
Fund Fund Total
------------ ------------ ------------
Additions
Investment income:
Interest $0 $107,736 $544,888
Contributions:
Day International Corporation 1,607,557 0 3,180,214
Employees of Day International Corporation 482,623 0 2,800,327
Transfers between accounts 1,928,405 (7,377,477) 0
------------ ------------ ------------
4,018,585 (7,269,741) 6,525,429
Deductions
Benefit payments and withdrawals 650,807 0 3,525,895
Administrative expenses 259 0 3,089
------------ ------------ ------------
651,066 0 3,528,984
Net realized and unrealized appreciation
(depreciation) in fair value of
investments 2,510,903 0 3,736,201
------------ ------------ ------------
Net additions(deductions) 5,878,422 (7,269,741) 6,732,646
Assets available for plan benefits
at beginning of year 0 0 0
Transfers from previously held funds 5,451,030 7,269,741 36,700,481
------------ ------------ ------------
Assets available for plan benefits
at end of year $11,329,452 $0 $43,433,127
============ ============ ============
Polymer Group
Retirement Savings Plan
Notes to Financial Statements
December 31, 1993
1. Plan Information
Plan Sponsor
Cadillac Plastic Group, Inc., formerly called Day
International Corporation (the Company), a subsidiary of the
M. A. Hanna Company, is the legal sponsor of the Plan.
Plan Restatement
Effective January 1, 1992, the Capital Accumulation and
Savings Plan for Salaried Employees of Day International
Corporation was amended and restated to become the Polymer
Group Retirement Savings Plan (the Plan). A successor trustee
was also appointed.
As of January 1, 1992, the Plan provides for employee
contributions to be invested in seven separate daily-valued
Wells Fargo Investment Funds for Retirement Plans. The seven
funds are: the Asset Allocation Wellsfunds, the Bond Index
Wellsfunds, the U.S. Treasury Allocation Wellsfunds, the S&P
500 Stock Wellsfunds, the M.A. Hanna Stock Wellsfunds, the
Money Market Wellsfunds, and the Tilts & Timing Wellsfunds.
The allocation of each participant's contribution and the
employer's discretionary contribution is made to these funds
as directed by the participant. In 1993 and 1992, the
Company's matching contribution is invested in the M. A. Hanna
stock fund. As of January 1, 1994 and every two years
thereafter, participants shall be provided with at least a
two-week window in which they can direct the Company's
matching contribution. The qualified nonelective contribution
made in 1993 and 1992 is invested according to the
participant's investment election on the date of contribution.
2. Significant Accounting Policies
Basis of Accounting
The accounting records of the Plan are maintained on an
accrual basis in conformity with generally accepted accounting
principles.
Valuation of Investments
Investments are carried at current value as determined by the
valuation at market of net assets applicable to outstanding
units of the Wells Fargo Investment Funds for Retirement
Plans.
3. Description of the Plan
The Plan is a defined contribution plan which covers
substantially all salaried employees of the Company and
certain related companies. The Plan is subject to the
provisions of the Employee Retirement Income Security Act of
1974 (ERISA).
The Company's annual contribution to the Plan is comprised of
two elements, a discretionary contribution and a matching
contribution.
The Company's discretionary contribution is computed as the
sum of the participants' compensation for the accounting year
ending on the December 31 valuation date multiplied by a
predetermined percentage (3.5% for the accounting years ended
December 31, 1993 and 1992). Contributions to participants'
accounts are subject to certain limitations as defined by the
Plan.
The Company's matching contribution is computed as the sum of
the matchable contributions (contributions not exceeding 6% of
the participant's current compensation) made by the
participants to the Plan during the year multiplied by a
predetermined percentage which is based on the fully diluted
earnings per share of the M. A. Hanna Company. Participants
are not required to make contributions to the Plan. They may,
however, voluntarily contribute to their own account an amount
not exceeding 11% of their compensation received while a
participant during the year.
Under the provisions of the plan agreement, the Company is
also permitted to make a qualified nonelective contribution.
This contribution is made in amounts necessary to keep the
Plan from violating certain Internal Revenue Code
nondiscriminatory regulations. When made, these contributions
are allocated to non-highly-compensated participants as
designated by the Company and are immediately 100% vested. The
Plan has met the minimum funding requirements of ERISA.
Participants are immediately vested in the employee
contributions and the Company's matching contributions made to
the Plan. Each participant's account is also credited with an
allocation of (a) the Company's contributions and (b) plan
earnings. Allocations are based on participant earnings,
account balances, and employee contributions as defined by the
Plan. Participants are vested in this portion of their account
based on their years of service. A participant is 100% vested
after five years of credited service. Upon termination of
service, a participant may receive either a lump-sum amount
equal to the value of his or her account or monthly payments
over a period of time as defined by the plan agreement.
Forfeitures of terminated participants' nonvested accounts are
used to offset future Company contributions.
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 will become 100% vested in their accounts.
All expenses of the Plan, except investment management fees
and loan fees, are paid by the Company. Information about the
plan agreement, including the vesting and benefit provisions,
is available from the Plan's Committee for Employee Benefits
Administration.
4. Investments
The following table presents individual investments that
represented 5% or more of the fair value of net assets
available for plan benefits for the year ended December 31:
1993 1992
Asset Allocation Fund $ - $4,297,253
S&P 500 Stock Fund - 5,076,031
U.S. Treasury Allocation Fund - 8,682,951
Money Market Fund - 8,514,084
Asset Allocation Wellsfunds 6,332,684 -
S&P 500 Stock Wellsfunds 6,257,440 -
U.S. Treasury Allocation Wellsfunds 10,548,377 -
Money Market Wellsfunds 7,584,959 -
M.A. Hanna Stock Fund 13,418,370 9,715,744
5. Income Tax Status
The Internal Revenue Service has ruled that the Plan qualifies
under Section 401(a) of the Internal Revenue Code (IRC) and
is, therefore, not subject to tax under present income tax
law. Once qualified, the Plan is required to operate in
conformity with the IRC to maintain its qualification.
Subsequent to qualification under Section 401(a), the Plan has
been amended to comply with changes required by the Tax Reform
Act of 1986 and has filed for approval of plan changes to
maintain its qualification. The Committee for Employee
Benefits Administration of the Company is not aware of any
course of action or series of events that have occurred that
might adversely affect the Plan's qualified status.
6. Transactions with Parties-In-Interest
The Plan had substantially all of the M. A. Hanna stock fund
assets at December 31, 1993 and 1992 invested in the common
stock of the M. A. Hanna Company. Under the provisions of the
plan agreement, the Company may direct the trustee to acquire
and hold M.A. Hanna Company stock in an amount equal to up to
100% of the sum of all Participants' Matching Accounts.
Polymer Group Retirement Savings Plan
Schedule of Assets Held for Investment
December 31, 1993
Description of Current
Investment Units Cost Value
- - ----------------------------------------- ------------------------- ------------ ------------
Asset Allocation Wellsfunds 616,619.628 $6,187,117 $6,332,684
Bond Index Wellsfunds 137,265.209 1,373,788 1,364,416
S&P 500 Stock Wellsfunds 599,371.652 6,006,904 6,257,440
U.S. Treasury Allocation Wellsfunds 1,602,273.573 10,646,830 10,548,377
Tilts & Timing Fund 151,928.989 1846612 2075350
Money Market Wellsfunds 7,584,958.980 7,584,959 7,584,959
M.A. Hanna Stock Fund 797,288.787 10,950,931 13,418,370
------------ ------------
$44,597,141 $47,581,596
============ ============
Polymer Group Retirement Savings Plan
Transactions or Series of Transactions in Excess
of 5% of the Current Value of Plan Assets
Year Ended December 31, 1993
Number of Purchase Number of
Identity of Party Involved Description of Assets Purchases Price Sales
- - -------------------------------------------------- ----------------------------------- ------------ ------------ ------------
Category (i) - A Single Transaction in Excess of
5% of Plan Assets
Asset Allocation Fund Participating Units 1
S&P 500 Stock Fund Participating Units 1
U.S. Treasury Allocation Fund Participating Units 1
Money Market Fund Participating Units 1
Asset Allocation Wellsfunds Participating Units 1 $5,817,919
Money Market Wellsfunds Participating Units 1 7,459,879
S&P 500 Stock Wellsfunds Participating Units 1 5,869,364
U.S. Treasury Allocation Wellsfunds Participating Units 1 10,032,187
Category (iii) - A Series of Transaction in Excess
of 5% of Plan Assets
Asset Allocation Fund Participating Units 31
S&P 500 Stock Fund Participating Units 44
U.S. Treasury Allocation Fund Participating Units 62
Money Market Fund Participating Units 79
Asset Allocation Wellsfunds Participating Units 73 6,518,902
Money Market Wellsfunds Participating Units 61 8,031,258
S&P 500 Stock Wellsfunds Participating Units 73 6,270,614
U.S. Treasury Allocation Wellsfunds Participating Units 63 11,081,239
M.A. Hanna Funds:
M.A. Hanna Stock Fund Participating Units 129 3,225,249
There were no reportable Category (ii) or (iv) transactions for the year.
Historical Selling Net Gain
Identity of Party Involved Description of Assets Cost Price (Loss)
- - -------------------------------------------------- ----------------------------------- ------------ ------------ ------------
Category (i) - A Single Transaction in Excess
of 5% of Plan Assets
Asset Allocation Fund Participating Units $5,219,876 $5,816,581 $596,705
S&P 500 Stock Fund Participating Units 5,423,419 5,868,788 445,369
U.S. Treasury Allocation Fund Participating Units 8,563,755 10,031,753 1,467,998
Money Market Fund Participating Units 7,459,029 7,459,029 0
Asset Allocation Wellsfunds Participating Units
Money Market Wellsfunds Participating Units
S&P 500 Stock Wellsfunds Participating Units
U.S. Treasury Allocation Wellsfunds Participating Units
Category (iii) - A Series of Transaction in Excess
of 5% of Plan Assets
Asset Allocation Fund Participating Units 5,567,292 6,199,018 631,726
S&P 500 Stock Fund Participating Units 5,756,561 6,228,930 472,369
U.S. Treasury Allocation Fund Participating Units 8,926,801 10,437,805 1,511,004
Money Market Fund Participating Units 9,035,690 9,035,690 0
Asset Allocation Wellsfunds Participating Units
Money Market Wellsfunds Participating Units
S&P 500 Stock Wellsfunds Participating Units
U.S. Treasury Allocation Wellsfunds Participating Units
M.A. Hanna Funds:
M.A. Hanna Stock Fund Participating Units