Audited Financial Statements
Wilson Color Profit Sharing Plan
and Trust
December 31, 1993 and 1992
Report of Independent Auditors
Committee for Employee Benefits Administration
Wilson Color Profit Sharing Plan and Trust
We have audited the accompanying statements of net assets
available for plan benefits of the Wilson Color Profit
Sharing 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 the 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
Wilson Color Profit Sharing Plan and Trust
Statement of Net Assets Available for Plan Benefits
December 31, 1993
Wells Fargo Mutual Funds
----------------------------------------------------------------
U.S.
Asset Bond Treasury Money
Sweep Allocation Index S&P 500 Allocation Market
Account Fund Fund Stock Fund Fund Fund
------------ ------------ ------------ ------------ ------------ ------------
Assets
Investments at fair value $236 $374,931 $28,342 $549,335 $85,991 $437,107
Employer's contribution receivable 22,987 3,626 24,959 4,858 43,479
Employees' contribution receivable 3,407 518 4,600 481 4,708
Participant loans
------------ ------------ ------------ ------------ ------------ ------------
Net assets available for plan benefits $236 $401,325 $32,486 $578,894 $91,330 $485,294
============ ============ ============ ============ ============ ============
See notes to financial statements.
Tilts & M.A. Hanna
Timing Company
Fund Stock Fund Loans Total
------------ ------------ ------------ ------------
Assets
Investments at fair value
Employer's contribution receivable $109,705 $194,945 $1,780,592
Employees' contribution receivable 6,887 16,062 122,858
Participant loans 1,154 392 15,260
$233,375 233,375
Net assets available for plan benefits ------------ ------------ ------------ ------------
$117,746 $211,399 $233,375 $2,152,085
============ ============ ============ ============
Wilson Color Profit Sharing Plan and Trust
Statement of Net Assets Available for Plan Benefits
December 31, 1992
Wells Fargo Collective Investment Funds
-----------------------------------------------------------------------------
Three Way Daily U.S.
Asset Bond Treasury Tilts & Money
Allocation Index S&P 500 Allocation Timing Market
Fund Fund Stock Fund Fund Fund Fund
------------ ------------ ------------ ------------ ------------ ------------
Assets
Investments at fair value $21,068 $2,365 $26,214 $2,953 $5,176 $24,411
Employer's contribution receivable 884 113 888 119 235 995
Employees' contribution receivable 3,894 502 4,731 570 1,010 4,525
------------ ------------ ------------ ------------ ------------ ------------
Net assets available for plan benefits $25,846 $2,980 $31,833 $3,642 $6,421 $29,931
============ ============ ============ ============ ============ ============
See notes to financial statements.
Money Market M.A. Hanna
Transition Company
Fund Stock Fund Total
------------ ------------ ------------
Assets
Investments at fair value $1,541,116 $27,422 $1,650,725
Employer's contribution receivable 3,720 6,954
Employees' contribution receivable 1,680 16,912
------------ ------------ ------------
Net assets available for plan benefits $1,541,116 $32,822 $1,674,591
============ ============ ============
Wilson Color Profit Sharing Plan and Trust
Statement of Changes in Net Assets Available for Plan Benefits
Wells Fargo Collective Investment Funds
-----------------------------------------------------------------------------
Three Way Daily U.S.
Asset Bond Treasury Tilts & Money
Sweep Allocation Index S&P 500 Allocation Timing Market
Account Fund Fund Stock Fund Fund Fund Fund
------------ ------------ ------------ ------------ ------------ ------------ ------------
Net assets available for plan benefits
as of January 1, 1993 $0 $25,846 $2,980 $31,833 $3,642 $6,421 $29,931
Investment income:
Net realized and unrealized appreciation
(depreciation) in fair value of
investments 13,313 1,190 8,114 3,528 8,924
Interest 4,065
Dividends
------------ ------------ ------------ ------------ ------------ ------------
13,313 1,190 8,114 3,528 8,924 4,065
Contributions:
Employer 3,469 477 4,133 481 12,946 4,102
Employee 15,255 2,120 21,929 2,323 13,045 18,976
------------ ------------ ------------ ------------ ------------ ------------
18,724 2,597 26,062 2,804 25,991 23,078
Distributions to employees partially and
wholly withdrawn from the Plan (150) (11,838) (83) (25,141) (1,777) (2,834) (28,898)
Net transfers from (to) other funds 386 (46,045) (6,684) (40,868) (8,197) 79,257 (28,176)
Transfers (out) in
Administrative expenses (13)
------------ ------------ ------------ ------------ ------------ ------------ ------------
236 (25,846) (2,980) (31,833) (3,642) 111,325 (29,931)
------------ ------------ ------------ ------------ ------------ ------------ ------------
Net assets available for plan benefits
as of December 31, 1993 $236 $0 $0 $0 $0 $117,746 $0
============ ============ ============ ============ ============ ============ ============
See notes to financial statements.
Wells Fargo Mutual Funds
----------------------------------------------------------------
U.S.
Money Market Asset Bond Treasury Money
Transition Allocation Index S&P 500 Allocation Market
Fund Fund Fund Stock Fund Fund Fund
------------ ------------ ------------ ------------ ------------ ------------
Net assets available for plan benefits
as of January 1, 1993 $1,541,116 $0 $0 $0 $0 $0
Investment income:
Net realized and unrealized appreciation
(depreciation) in fair value of
investments 7,772 (33) 22,559 (957)
Interest 7,064
Dividends 9,517 887 6,691 4,760 5,743
------------ ------------ ------------ ------------ ------------ ------------
7,064 17,289 854 29,250 3,803 5,743
Contributions:
Employer 59,378 5,915 43,434 7,483 69,804
Employee 91,479 3,440 31,196 3,296 32,865
------------ ------------ ------------ ------------ ------------
150,857 9,355 74,630 10,779 102,669
Distributions to employees partially and
wholly withdrawn from the Plan (2,082) (1,967) (24,209)
Net transfers from (to) other funds (1,547,680) 325,771 22,279 477,032 76,753 401,165
Transfers (out) in (500) (90,464)
Administrative expenses (46) (2) (51) (5) (74)
------------ ------------ ------------ ------------ ------------ ------------
(1,541,116) 401,325 32,486 578,894 91,330 485,294
------------ ------------ ------------ ------------ ------------ ------------
Net assets available for plan benefits
as of December 31, 1993 $0 $401,325 $32,486 $578,894 $91,330 $485,294
============ ============ ============ ============ ============ ============
M.A. Hanna
Company
Stock Fund Loans Total
------------ ------------ ------------
Net assets available for plan benefits
as of January 1, 1993 $32,822 $0 $1,674,591
Investment income:
Net realized and unrealized appreciation
(depreciation) in fair value of
investments 40,635 105,045
Interest 16,605 27,734
Dividends 27,598
------------ ------------ ------------
40,635 16,605 160,377
Contributions:
Employer 53,504 265,126
Employee 10,567 246,491
------------ ------------
64,071 511,617
Distributions to employees partially and
wholly withdrawn from the Plan (5,716) (1) (104,696)
Net transfers from (to) other funds 162,593 132,414 0
Transfers (out) in (82,998) 84,357 (89,605)
Administrative expenses (8) (199)
------------ ------------ ------------
178,577 233,375 477,494
------------ ------------ ------------
Net assets available for plan benefits
as of December 31, 1993 $211,399 $233,375 $2,152,085
============ ============ ============
Wilson Color Profit Sharing Plan and Trust
Notes to Financial Statements
December 31, 1993 and 1992
A. Significant Accounting Policies
The accounting records of the Wilson Color Profit Sharing Plan
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.
The Daily Bond Index Fund invests in units of the WFITC
Government/Corporate Bond Index Fund ("Bond Master
Fund"). The Bond Master Fund's units are valued
approximately once every five business days ("Master Fund
Valuation Date"). Daily valuations of the Bond Master
Fund are calculated by adjusting its unit value on the most
recent Master Fund Valuation Date for subsequent
changes in the Lehman Brothers
Government/Corporate Bond Index.
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 an 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 Wilson Color,
Incorporated division of M.A. Hanna Company (the Company)
effective July 1, 1992. Each participant may elect to
voluntarily contribute up to 12% of his aggregate
compensation subject to certain annual limits. Employer
contributions represent a 50% match of each participant's
before tax contributions except that no match is made on
contributions in excess of 6% of his 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
following each pay period. Participant's 401(k)
contributions and accounts are 100% vested at all times.
"Discretionary Employer Retirement" contributions and
accounts vest at 20% per year over five years for eligible
associates employed on the last day of the 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,
forfeiture and benefit provisions, is contained in the
Wilson Color Profit Sharing Plan and Trust. 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 as follows:
1993 1992
M.A. Hanna Company Stock Fund $194,945
Wells Fargo Mutual Funds:
Asset Allocation Fund 374,931
S & P 500 Stock Fund 549,335
Money Market Fund 437,107
Wells Fargo Collective Investment Fund:
Tilts and Timing Fund 109,705
Money Market Transition Fund $1,541,116
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.
Wilson Color Profit Sharing Plan 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
- - ----------------------------------------- ------------------------- ------------ ------------
Cash $236 $236
M.A. Hanna Company Stock Fund 11,583 units 170,629 194,945
Wells Fargo Mutual Funds:
Asset Allocation Fund 36,507 units 369,455 374,931
Bond Index Fund 2,851 units 28,581 28,342
S&P 500 Stock Fund 52,618 units 527,907 549,335
U.S. Treasury Allocation Fund 8,660 units 86,973 85,991
Money Market Fund 437,107 units 437,107 437,107
------------ ------------
1,450,023 1,475,706
Wells Fargo Collective Investment Funds:
Tilts & Timing Fund 8,031 units 102,685 109,705
Participant Loans Various personal loans
ranging from 7 to 11.5%
with terms of 1 - 5 years 233,375 233,375
------------ ------------
$1,956,948 $2,013,967
============ ============
Wilson Color Profit Sharing Plan and Trust
Schedule 27(d) - Schedule of Reportable Transactions
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 28 $334,377 15 $189,407
Collective Investment Funds
-----------------------------------
Wells Fargo Bank, N.A. Three Way Asset Allocation Fund 17 320,865 18 341,917
Wells Fargo Bank, N.A. Daily Bond Index Fund 9 45,961 3 48,316
Wells Fargo Bank, N.A. S&P 500 Stock Fund 17 533,200 15 559,714
Wells Fargo Bank, N.A. U.S. Treasury Allocation Fund 13 82,281 9 85,215
Wells Fargo Bank, N.A. Tilts & Timing Fund 24 152,270 13 54,803
Wells Fargo Bank, N.A. Money Market Fund 15 456,970 13 485,446
Wells Fargo Bank, N.A. Money Market Transition Fund 12 7,785 3 1,544,524
Mutual Funds
-----------------------------------
Wells Fargo Bank, N.A. Asset Allocation Fund 22 478,657 7 109,203
Wells Fargo Bank, N.A. Bond Index Fund 15 56,372 1 27,791
Wells Fargo Bank, N.A. S&P 500 Stock Fund 15 574,198 11 46,291
Wells Fargo Bank, N.A. U.S. Treasury Allocation Fund 16 88,137 2 1,164
Wells Fargo Bank, N.A. Money Market Fund 17 480,346 14 48,098
Single Transactions
Purchases Sales
------------------------- --------------------------
Identity of Party Involved Description Date Amount Date Cost
- - ----------------------------------------- ----------------------------------- ------------ ------------ ------------ ------------
Wells Fargo Bank, N.A. M.A. Hanna Company Stock Fund 2/26/93 $217,905
Collective Investment Funds
-----------------------------------
Wells Fargo Bank, N.A. Three Way Asset Allocation Fund 2/26/93 273,592 7/2/93 $298,355
Wells Fargo Bank, N.A. S&P 500 Stock Fund 2/26/93 474,537 7/2/93 501,337
Wells Fargo Bank, N.A. Tilts & Timing Fund 2/26/93 94,609
Wells Fargo Bank, N.A. Money Market Fund 2/26/93 409,739 7/2/93 407,275
Mutual Funds
-----------------------------------
Wells Fargo Bank, N.A. Asset Allocation Fund 7/2/93 310,869
Wells Fargo Bank, N.A. Asset Allocation Fund 8/16/93 90,464 8/13/93 88,676
Wells Fargo Bank, N.A. Money Market Fund 7/2/93 407,275
Wells Fargo Bank, N.A. S&P 500 Stock Fund 7/2/93 508,587
Series of Transactions
-------------------------
Selling
Identity of Party Involved Description Price Net Gain
- - ----------------------------------------- ----------------------------------- ------------ ------------
Wells Fargo Bank, N.A. M.A. Hanna Company Stock Fund $207,489 $18,082
Collective Investment Funds
-----------------------------------
Wells Fargo Bank, N.A. Three Way Asset Allocation Fund 355,245 13,328
Wells Fargo Bank, N.A. Daily Bond Index Fund 49,516 1,200
Wells Fargo Bank, N.A. S&P 500 Stock Fund 567,528 7,814
Wells Fargo Bank, N.A. U.S. Treasury Allocation Fund 88,762 3,547
Wells Fargo Bank, N.A. Tilts & Timing Fund 56,665 1,862
Wells Fargo Bank, N.A. Money Market Fund 485,446 0
Wells Fargo Bank, N.A. Money Market Transition Fund 1,544,524 0
Mutual Funds
-----------------------------------
Wells Fargo Bank, N.A. Asset Allocation Fund 111,498 2,295
Wells Fargo Bank, N.A. Bond Index Fund 27,997 206
Wells Fargo Bank, N.A. S&P 500 Stock Fund 47,421 1,130
Wells Fargo Bank, N.A. U.S. Treasury Allocation Fund 1,189 25
Wells Fargo Bank, N.A. Money Market Fund 48,098 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 $310,869 $12,514
Wells Fargo Bank, N.A. S&P 500 Stock Fund 508,587 7,250
Wells Fargo Bank, N.A. Tilts & Timing Fund
Wells Fargo Bank, N.A. Money Market Fund 407,275 0
Mutual Funds
-----------------------------------
Wells Fargo Bank, N.A. Asset Allocation Fund
Wells Fargo Bank, N.A. Asset Allocation Fund 90,464 1,788
Wells Fargo Bank, N.A. Money Market Fund
Wells Fargo Bank, N.A. S&P 500 Stock Fund