Audited Financial Statements
Allied Color Industries, Inc.
Savings and Retirement Plan
for Associates of the Vonore, TN,
Kansas City, MO, San Fernando,
CA, and Vancouver, WA
Operations and Trust
(formerly the Avecor, Inc.
Savings and Retirement Plan
and Trust)
December 31, 1993 and 1992
Report ofIndependent Auditors
Committee for Employee Benefits Administration
Allied Color Industries, Inc. Savings and Retirement Plan for
Associates of the Vonore, TN, Kansas City, MO, San Fernando, CA,
and Vancouver, WA, Operations and Trust (formerly the Avecor, Inc.
Savings and Retirement Plan and Trust)
We have audited the accompanying statements of net assets available for
plan benefits of the Allied Color Industries, Inc. Savings and Retirement
Plan for Associates of the Vonore, TN, Kansas City, MO, San
Fernando, CA, and Vancouver, WA, Operations and Trust (formerly the
Avecor, Inc. Savings and Retirement Plan and Trust) as of December
31, 1993 and 1992, and the related statement of changes in net assets
available for plan benefits for the year ended December 31, 1993. 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 plan benefits of the
Plan at December 31, 1993 and 1992, and the changes in its net assets
available for plan benefits for the year ended December 31, 1993, 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 accompanying supplemental
schedules of assets held for investment as of December 31, 1993, and
transactions or series of transactions in excess of five percent of the
current value of plan assets for the year then ended, are presented for
purposes of complying with the Department of Labor's Rules and Regulations
for Reporting and Disclosure under the Employee Retirement Income Security
Act of 1974, and are not a required part of the basic financial
statements. The supplemental schedules have been subjected to the auditing
procedures applied in our audit of the 1993 financial statements and, in our
opinion, are fairly stated in all material respects in relation to the
1993 basic financial statements taken as a whole.
/s/ Ernst & Young
June 24, 1994
Allied Color Industries, Inc. Savings and Retirement Plan for Associates
of the Vonore,TN, Kansas City, MO, San Fernando, CA,
and Vancouver, WA Operations and Trust
Statement of Net Assets Available for Plan Benefits
December 31, 1993
Wells Fargo Mutual Funds
----------------------------------------------------------------
U.S.
Asset Growth Treasury Money M.A. Hanna
Allocation Stock S&P 500 Allocation Market Company
Fund Fund Stock Fund Fund Fund Stock Fund
------------ ------------ ------------ ------------ ------------ ------------
Assets
Investments at fair value $113,887 $40,869 $145,032 $49,729 $32,789 $13,802
Employer's contribution receivable 4,653 881 5,630 1,746 1,240 14,265
Employee's contribution receivable 2,065 150 2,434 725 583
Participant loans
------------ ------------ ------------ ------------ ------------ ------------
Net assets available for plan benefits $120,605 $41,900 $153,096 $52,200 $34,612 $28,067
============ ============ ============ ============ ============ ============
See notes to financial statements.
Loans Total
------------ ------------
Assets
Investments at fair value $396,108
Employer's contribution receivable 28,415
Employee's contribution receivable 5,957
Participant loans $16,146 16,146
------------ ------------
Net assets available for plan benefits $16,146 $446,626
============ ============
Allied Color Industries, Inc. Savings and Retirement Plan for Associates
of the Vonore,TN, Kansas City, MO, San Fernando,CA,
and Vancouver,WA Operations and Trust
Statement of Net Assets Available for Plan Benefits
December 31, 1992
Wells Fargo Collective Investment Funds
----------------------------------------------------------------
Three Way U.S.
Asset Growth Treasury Money M.A. Hanna
Allocation Stock S&P 500 Allocation Market Company
Fund Fund Stock Fund Fund Fund Stock Fund
------------ ------------ ------------ ------------ ------------ ------------
Assets
Investments at fair value $59,596 $16,429 $75,263 $29,107 $13,287
Employers' contribution receivable 4,592 713 5,598 2,121 1,212 $14,236
Employees' contribution receivable 597 351 888 515 249
Participant loans
------------ ------------ ------------ ------------ ------------ ------------
Net assets available for plan benefits $64,785 $17,493 $81,749 $31,743 $14,748 $14,236
============ ============ ============ ============ ============ ============
See notes to financial statements.
Loans Total
------------ ------------
Assets
Investments at fair value $193,682
Employers' contribution receivable 28,472
Employees' contribution receivable 2,600
Participant loans $2,676 2,676
------------ ------------
Net assets available for plan benefits $2,676 $227,430
============ ============
Allied Color Industries, Inc. Savings and Retirement Plan for Associates
of the Vonore,TN, Kansas City, MO, San Fernando, CA,
and Vancouver,WA Operations and Trust
Statement of Changes in Net Assets Available for Plan Benefits
Wells Fargo Collective Investment Funds
----------------------------------------------------------------
Three Way U.S.
Asset Growth Treasury Money
Sweep Allocation Stock S&P 500 Allocation Market
Account Fund Fund Stock Fund Fund Fund
------------ ------------ ------------ ------------ ------------ ------------
Net assets available for plan benefits
as of January 1, 1993 $0 $64,785 $17,493 $81,749 $31,743 $14,748
Investment income:
Net realized and unrealized appreciation
(depreciation) in fair value of
investments 6,284 337 3,103 3,837
Interest 4 294
Dividends
------------ ------------ ------------ ------------ ------------ ------------
4 6,284 337 3,103 3,837 294
Contributions:
Employer
Employee 26,460 9,115 34,467 11,572 8,497
------------ ------------ ------------ ------------ ------------
26,460 9,115 34,467 11,572 8,497
Distributions to employees partially and
wholly withdrawn from the Plan (12,524) (136) (9,816) (4,212) (1,658)
Net transfers from (to) other funds (4) (84,971) (26,797) (109,393) (42,925) (21,845)
Administrative expenses (34) (12) (110) (15) (36)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) 0 (64,785) (17,493) (81,749) (31,743) (14,748)
------------ ------------ ------------ ------------ ------------ ------------
Net assets available for plan benefits
as of December 31, 1993 $0 $0 $0 $0 $0 $0
============ ============ ============ ============ ============ ============
See notes to financial statements.
Wells Fargo Mutual Funds
----------------------------------------------------------------
U.S.
Asset Growth Treasury Money M.A. Hanna
Allocation Stock S&P 500 Allocation Market Company
Fund Fund Stock Fund Fund Fund Stock Fund
------------ ------------ ------------ ------------ ------------ ------------
Net assets available for plan benefits
as of January 1, 1993 $0 $0 $0 $0 $0 $14,236
Investment income:
Net realized and unrealized appreciation
(depreciation) in fair value of
investments 2,149 3,177 5,207 (815) 1,793
Interest
Dividends 2,787 1,189 1,676 2,602 418
------------ ------------ ------------ ------------ ------------ ------------
4,936 4,366 6,883 1,787 418 1,793
Contributions:
Employer 4,653 881 5,630 1,746 1,240 14,265
Employee 37,047 5,910 40,646 12,563 14,704
------------ ------------ ------------ ------------ ------------ ------------
41,700 6,791 46,276 14,309 15,944 14,265
Distributions to employees partially and
wholly withdrawn from the Plan (2,236) (5,013) (2,346) (2,574) (2,230)
Net transfers from (to) other funds 76,269 30,767 105,170 38,464 20,863 3
Administrative expenses (64) (24) (220) (14) (39)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) 120,605 41,900 153,096 52,200 34,612 13,831
------------ ------------ ------------ ------------ ------------ ------------
Net assets available for plan benefits
as of December 31, 1993 $120,605 $41,900 $153,096 $52,200 $34,612 $28,067
============ ============ ============ ============ ============ ============
Loans Total
------------ ------------
Net assets available for plan benefits
as of January 1, 1993 $2,676 $227,430
Investment income:
Net realized and unrealized appreciation
(depreciation) in fair value of
investments 25,072
Interest 669 967
Dividends 8,672
------------ ------------
669 34,711
Contributions:
Employer 28,415
Employee 200,981
------------
229,396
Distributions to employees partially and
wholly withdrawn from the Plan (1,598) (44,343)
Net transfers from (to) other funds 14,399 0
Administrative expenses (568)
------------ ------------
Net increase (decrease) 13,470 219,196
------------ ------------
Net assets available for plan benefits
as of December 31, 1993 $16,146 $446,626
============ ============
Allied Color Industries, Inc. Savings and Retirement Plan for
Associates of the Vonore, TN, Kansas City, MO, San Fernando, CA
and Vancouver, WA, Operations and Trust
December 31, 1993 and 1992
Notes to Financial Statements
A. Significant Accounting Policies
The accounting records of the Allied Color Industries, Inc. Savings and
Retirement Plan for Associates of the Vonore, TN, Kansas City, MO, San
Fernando, CA, and Vancouver, WA, Operations and Trust (the Plan) are
maintained on the accrual basis.
The change in the difference between fair value and cost of investments is
reflected in the statement of changes in net assets available for plan
benefits as unrealized appreciation (depreciation).
The Wells Fargo Collective Investment Funds ("the Funds") invest in units
of Wells Fargo Institutional Trust Company ("WFITC") Collective Trust Funds
for Employee Benefit Trusts ("the Master Funds") which have similar
investment objectives to the Funds. The Funds also invest in the Money Market
Fund as a short-term investment vehicle.
Effective July 2, 1993 The Wells Fargo Collective Investment Funds were
converted to the Stagecoach Inc. Mutual Funds of Wells Fargo ("the Funds").
Wells Fargo Bank, N.A. ("Wells Fargo") is the Trustee and Investment
Manager of the Funds. WFITC is the Trustee and Investment Manager of the
Master Funds and receives investment advice from Wells Fargo Nikko
Investment Advisors.
The following is a summary of significant accounting policies
consistently followed by Wells Fargo:
Fund Valuation
Valuation of the Funds' units occurs daily. Unit values are determined by
dividing the fair market value of each Fund's net assets by the number of
units outstanding on the valuation date.
Units of the Master Funds are valued on the basis of the unit value
established by WFITC for each fund at each valuation date.
Valuation of Investments
Securities traded on exchanges are valued at the last reported sales price
on the valuation date, or in the absence of any sales, at the last reported
bid price on the valuation date. Securities traded over-the-counter are
valued at the final bid price on the valuation date. Securities not traded
are valued on the basis of quotations from pricing services or securities
dealers.
U.S. Treasury obligations are valued daily at the mean of bid and ask
prices.
Investment Transactions and Investment Income
Investment transactions are accounted for on the trade date. Dividend
income is recognized on the ex-dividend date, and interest income is
recognized on the accrual basis. The cost of investments sold is
computed on an average cost basis.
B. Description of the Plan
The Plan is a defined contribution plan which covers substantially all
employees of the Vonore, TN, Kansas City, MO, San Fernando, CA, and
Vancouver, WA operations of Avecor, Incorporated (Allied Color
Industries, Inc. effective January 1, 1994) (the Company),
effective February 1, 1992. Each participant may elect to voluntarily
contribute up to 15% of his aggregate compensation subject to certain annual
limits. Employer contributions will total 25% of each participant's
before-tax contributions except that no match is made on contributions in
excess of 4% of the participant's aggregate compensation. Contributions may
be allocated by participants among investment options selected by the
plan administrator. One-half of the employer match is automatically
directed to the M.A. Hanna Company Stock Fund. Employer contributions
are made annually.
Participants are fully vested in their accounts at all times. Employer
contributions become vested at the end of the calendar year in which the
contributions are made, provided the participant is employed on the last day
of the calendar year.
The Company has reserved the right under the Plan to discontinue
contributions at any time and terminate the Plan. In the event of a
complete termination of the Plan, all participant accounts shall become 100%
vested and the net assets of the Plan are to be set aside for distribution
to all Plan participants. The Plan administrator has received notice
that the Plan is not covered by the Pension Benefit Guaranty Corporation.
Details of the Plan agreement, including vesting and benefit provisions, is
contained in the Allied Color Industries, Inc. Savings and Retirement Plan.
Copies of this agreement are available from the Committee for Employee
Benefits Administration.
C. Investments
The individual investments that represent 5% or more of the fair value of
net assets available for plan benefits at December 31, 1993 and 1992 are:
1993 1992
Bank Common Trust Funds:
Wells Fargo Mutual Funds:
Asset Allocation Fund $113,887
Growth Stock Fund 40,869
S&P 500 Stock Fund 145,032
U.S. Treasury Allocation Fund 49,729
Money Market Fund 32,789
Wells Fargo Collective
Investment Funds:
Three Way Asset Allocation Fund $59,596
Growth Stock Fund 16,429
S&P 500 Stock Fund 75,263
U.S. Treasury Allocation Fund 29,107
Money Market Fund 13,287
D. Transactions with Parties-in-Interest
All expenses of administering the plan are paid by the Company.
Investment management fees are paid by participants in that
management fees reduce the investment return reported and credited to
participants.
E. Income Tax Status
The Plan has not received a favorable determination letter from the
Internal Revenue Service as to the tax qualified status of the Plan; such a
letter has been requested. The Plan administrator believes that the Plan is
in operational compliance with the Internal Revenue Code and, therefore,
will remain qualified and exempt from income taxes.
Allied Color Industries, Inc. Savings and Retirement Plan for Associates
of the Vonore,TN, Kansas City, MO, San Fernando, CA,
and Vancouver,WA Operations and Trust
Schedule 27(a) - Schedule of Assets Held for Investment Purposes
December 31, 1993
Identity of Issue, Borrower, Lessor Description of Current
or Similar Party Investment Cost Value
- - ----------------------------------------- ------------------------- ------------ ------------
M.A. Hanna Stock Fund 820 units $12,037 $13,802
Wells Fargo Mutual Funds:
Asset Allocation Fund 11,089 units 112,007 113,887
Growth Stock Fund 3,712 units 37,725 40,869
S&P 500 Stock Fund 13,892 units 140,178 145,032
U.S. Treasury Allocation Fund 5,008 units 50,579 49,729
Money Market Fund 32,789 units 32,789 32,789
------------ ------------
373,278 382,306
Participant Loans Various personal loans
at 7% interest with
terms of 1 to 5 years 16,146 16,146
------------ ------------
$401,461 $412,254
============ ============
Allied Color Industries, Inc. Savings and Retirement Plan for Associates
of the Vonore,TN, Kansas City, MO, San Fernando, CA
and Vancouver, WA Operations and Trust
Schedule 27(d) - Schedule of Reportable Transactions
Year Ended December 31, 1993
Series Of Transactions
Purchases Sales
------------------------- -------------------------
Identity of Party Involved Description Number Amount Number Cost
- - ----------------------------------------- ----------------------------------- ------------ ------------ ------------ ------------
Wells Fargo Bank, N.A. M.A. Hanna Company Stock Fund 3 $14,238 12 $2,202
Collective Investment Funds
-----------------------------------
Wells Fargo Bank, N.A. Three Way Asset Allocation Fund 30 31,337 17 89,244
Wells Fargo Bank, N.A. Growth Stock Fund 27 12,369 6 27,209
Wells Fargo Bank, N.A. S&P 500 Stock Fund 36 42,519 19 114,343
Wells Fargo Bank, N.A. U.S. Treasury Allocation Fund 33 13,938 12 42,378
Wells Fargo Bank, N.A. Money Market Fund 28 16,542 14 30,122
Mutual Funds
-----------------------------------
Wells Fargo Bank, N.A. Asset Allocation Fund 35 120,488 10 8,480
Wells Fargo Bank, N.A. Growth Stock Fund 30 38,212 2 487
Wells Fargo Bank, N.A. S&P 500 Stock Fund 35 150,705 9 10,527
Wells Fargo Bank, N.A. U.S. Treasury Allocation Fund 31 52,652 2 2,073
Wells Fargo Bank, N.A. Money Market Fund 28 40,278 4 7,854
Single Transactions Purchases Sales
------------------------- -------------------------
Identity of Party Involved Description Date Amount Date Cost
- - ----------------------------------------- ----------------------------------- ------------ ------------ ------------ ------------
Wells Fargo Bank, N.A. M.A. Hanna Company Stock Fund 2/8/93 $13,982
Collective Investment Funds
-----------------------------------
Wells Fargo Bank, N.A. Three Way Asset Allocation Fund 7/2/93 $75,311
Wells Fargo Bank, N.A. Growth Stock Fund 7/2/93 26,317
Wells Fargo Bank, N.A. S&P 500 Stock Fund 7/2/93 99,579
Wells Fargo Bank, N.A. U.S. Treasury Allocation Fund 7/2/93 32,338
Wells Fargo Bank, N.A. Money Market Fund 7/2/93 25,505
Mutual Funds
-----------------------------------
Wells Fargo Bank, N.A. Asset Allocation Fund 7/2/93 83,492
Wells Fargo Bank, N.A. Growth Stock Fund 7/2/93 28,487
Wells Fargo Bank, N.A. S&P 500 Stock Fund 7/2/93 106,667
Wells Fargo Bank, N.A. U.S. Treasury Allocation Fund 7/2/93 36,374
Wells Fargo Bank, N.A. Money Market Fund 7/2/93 25,872
Series of Transactions
--------------------------
Selling
Identity of Party Involved Description Price Net Gain
- - ----------------------------------------- ----------------------------------- ------------ ------------
Wells Fargo Bank, N.A. M.A. Hanna Company Stock Fund $2,230 $28
Collective Investment Funds
-----------------------------------
Wells Fargo Bank, N.A. Three Way Asset Allocation Fund 97,258 8,014
Wells Fargo Bank, N.A. Growth Stock Fund 29,135 1,926
Wells Fargo Bank, N.A. S&P 500 Stock Fund 120,885 6,542
Wells Fargo Bank, N.A. U.S. Treasury Allocation Fund 46,882 4,504
Wells Fargo Bank, N.A. Money Market Fund 30,122 0
Mutual Funds
-----------------------------------
Wells Fargo Bank, N.A. Asset Allocation Fund 8,751 271
Wells Fargo Bank, N.A. Growth Stock Fund 519 32
Wells Fargo Bank, N.A. S&P 500 Stock Fund 10,879 352
Wells Fargo Bank, N.A. U.S. Treasury Allocation Fund 2,108 35
Wells Fargo Bank, N.A. Money Market Fund 7,854 0
Single Transactions
--------------------------
Selling
Identity of Party Involved Description Price Net Gain
- - ----------------------------------------- ----------------------------------- ------------ ------------
Wells Fargo Bank, N.A. M.A. Hanna Company Stock Fund
Collective Investment Funds
-----------------------------------
Wells Fargo Bank, N.A. Three Way Asset Allocation Fund $82,298 $6,987
Wells Fargo Bank, N.A. Growth Stock Fund 28,208 1,891
Wells Fargo Bank, N.A. S&P 500 Stock Fund 105,248 5,669
Wells Fargo Bank, N.A. U.S. Treasury Allocation Fund 36,001 3,663
Wells Fargo Bank, N.A. Money Market Fund 25,505 0
Mutual Funds
-----------------------------------
Wells Fargo Bank, N.A. Asset Allocation Fund
Wells Fargo Bank, N.A. Growth Stock Fund
Wells Fargo Bank, N.A. S&P 500 Stock Fund
Wells Fargo Bank, N.A. U.S. Treasury Allocation Fund
Wells Fargo Bank, N.A. Money Market Fund