SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year ended December 31, 1995
OWENS CORNING
SAVINGS AND SECURITY PLAN
OWENS CORNING
Fiberglas Tower
Toledo, Ohio 43659
Commission File No. 1-3660
- -------------------------------------------------------------
REQUIRED INFORMATION
(a) Financial Statements.
1. Report of Independent Public Accountants
2. Statements of Net Assets Available for Benefits - as
of December 31, 1995 and 1994
3. Statements of Changes in Net Assets
Available for Benefits -
for the years ended December 31, 1995, 1994 and 1993
4. Notes to Financial Statements
5. Supplemental Schedules:
Schedule I - Item 27a - Schedule of Assets Held for
Investment Purposes as of December 31, 1995
Schedule II - Item 27d - Schedule of Reportable
Transactions for the Year Ended December 31, 1995
(b) Exhibit.
Consent of Arthur Andersen LLP
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the trustees (or other persons who administer the
Plan) have duly caused this annual report to be signed on its
behalf by the undersigned hereunto duly authorized.
OWENS CORNING
SAVINGS AND SECURITY PLAN
By /s/ Michael I. Miller
Michael I. Miller
Chairman, Investment Review
Committee
Dated: June 20, 1996
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Plan Administrator,
Owens Corning
Savings and Security Plan:
We have audited the accompanying statements of net assets
available for benefits of the OWENS CORNING SAVINGS AND
SECURITY PLAN as of December 31, 1995 and 1994, and the
related statements of changes in net assets available for
benefits for each of the three years in the period ended
December 31, 1995. These financial statements and
supplemental schedules are the responsibility of the plan
administrator. Our responsibility is to express an opinion
on these financial statements and supplemental schedules
based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audits 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
the plan administrator, 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 benefits of the Owens Corning Savings and
Security Plan as of December 31, 1995 and 1994, and the
changes in its net assets available for benefits for each of
the three years in the period ended December 31, 1995, in
conformity with generally accepted accounting principles.
Our audits were performed for the purpose of forming an
opinion on the basic financial statements taken as a whole.
The supplemental schedules of assets held for investment
purposes as of December 31, 1995, and reportable transactions
for the year ended December 31, 1995, are presented for the
purpose of additional analysis and are not a required part of
the basic financial statements, but are supplemental
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 Fund Information
in the statements of net assets available for benefits and
the statements of changes in net assets available for
benefits is presented for purposes of additional analysis
rather than to present the net assets available for plan
benefits and changes in net assets available for plan
benefits of each fund. The supplemental schedules and Fund
Information have been subjected to the auditing procedures
applied in the audits 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.
ARTHUR ANDERSEN LLP
Toledo, Ohio,
June 10, 1996.
-1-
OWENS CORNING
SAVINGS AND SECURITY PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 1995 AND 1994
1 9 9 5
Supplemental Information By Fund
--------------------------------------------
Company Managed Indexed Fixed
Stock Equity Equity Income
Fund Fund Fund Fund
------------ ----------- --------- ---------
ASSETS:
Investments (Notes 1, 2, 3 and 4):
Short-term investments $ 623,025 $ - $ - $ -
Owens Corning common stock,
702,975 shares at $44.875 per
share (cost $22,295,934) 31,546,003 - - -
Investment in master trust collective
funds - 7,326,491 2,036,894 6,177,196
Accrued interest income 647 - - -
Due from Owens Corning(Note 1) 544,755 75,086 22,066 55,222
------------ ------------ ------------------------
Total assets $ 32,714,430 $ 7,401,577 $ 2,058,960$ 6,232,418
============ ============ ========================
LIABILITIES (Notes 1 and 5):
Accounts payable to brokers and others $ 639,642 $ 4,831 $ 1,442$ 4,121
------------ ------------ ------------------------
NET ASSETS AVAILABLE FOR BENEFITS
(Notes 1 and 5) 32,074,788 7,396,746 2,057,518 6,228,297
------------ ------------ ------------------------
Total liabilities and net assets
available for benefits $ 32,714,430 $ 7,401,577 $ 2,058,960$ 6,232,418
============ ============ ========================
The accompanying notes are an integral part of these statements.
-2-
OWENS CORNING
SAVINGS AND SECURITY PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 1995 AND 1994
(Continued)
1 9 9 5
Supplemental Information By Fund
-------------------------------
Inter-
Balanced national
Fund Fund Total
--------- --------- ---------
ASSETS:
Investments (Notes 1, 2, 3 and 4):
Short-term investments $ - $ - $ 623,025
Owens Corning common stock, 702,975
shares at $44.875 per share
(cost $22,295,934) - - 31,546,003
Investment in master trust collective
funds 360,490 570,801 16,471,872
Accrued interest income - - 647
Due from Owens Corning(Note 1) 12,095 14,528 723,752
------------ ------------ ------------
Total assets $ 372,585 $ 585,329 $ 49,365,299
============ ============ ============
LIABILITIES (Notes 1 and 5):
Accounts payable to brokers and others $ 293 $ 468 $ 650,797
------------ ------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS
(Notes 1 and 5) $ 372,292 $ 584,861 $ 48,714,502
------------ ------------ ------------
Total liabilities and net assets
available for benefits $ 372,585 $ 585,329 $ 49,365,299
============ ============ ============
The accompanying notes are an integral part of these statements.
-3-
OWENS CORNING
SAVINGS AND SECURITY PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 1995 AND 1994
(Continued)
1 9 9 4
Supplemental Information By Fund
----------------------------------------------
Company Managed Indexed Fixed
Stock Equity Equity Income
Fund Fund Fund Fund
------------------ --------- ---------
ASSETS:
Investments (Notes 1, 2, 3 and 4):
Short-term investments $ 697,356 $ - $ - $ -
Owens Corning common stock,
580,259 shares at
$31.875 per share
(cost $17,486,064) 18,495,756 - - -
Investment in master trust
collective funds - 4,829,496 1,215,346 4,346,525
Accrued interest income 1,250 - - -
Due from Owens Corning (Note 1) 485,402 80,027 18,493 76,724
-------------------------------------------
Total assets $19,679,764 $4,909,523$ 1,233,839$ 4,423,249
===========================================
LIABILITIES (Notes 1 and 5):
Accounts payable to brokers and others$ 692,696 $ -$ -$ -
-------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS
(Notes 1 and 5) 18,987,068 4,909,523 1,233,839 4,423,249
-------------------------------------------
Total liabilities and net assets
available for benefits $19,679,764 $4,909,523$ 1,233,839$ 4,423,249
===========================================
The accompanying notes are an integral part of these statements.
-4-
OWENS CORNING
SAVINGS AND SECURITY PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 1995 AND 1994
(Continued)
1 9 9 4
Supplemental Information By Fund
--------------------------------
Inter-
Balanced national
Fund Fund Total
--------- --------- ---------
ASSETS:
Investments (Notes 1, 2, 3 and 4):
Short-term investments $ - $ - $ 697,356
Owens Corning common stock, 580,259
shares at $31.875 per share
(cost $17,486,064) - - 18,495,756
Investment in master trust collective
funds 80,687 185,781 10,657,835
Accrued interest income - - 1,250
Due from Owens Corning(Note 1) 4,275 11,209 676,130
------------ ------------ ------------
Total assets $ 84,962 $ 196,990 $ 30,528,327
============ ============ ============
LIABILITIES (Notes 1 and 5):
Accounts payable to brokers and others $ - $ - $ 692,696
------------ ------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS
(Notes 1 and 5) $ 84,962 $ 196,990 $ 29,835,631
------------ ------------ ------------
Total liabilities and net assets
available for benefits $ 84,962 $ 196,990 $ 30,528,327
============ ============ ============
The accompanying notes are an integral part of these statements.
-5-
OWENS CORNING
SAVINGS AND SECURITY PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
1 9 9 5
Supplemental Information By Fund
--------------------------------------------
Company Managed Indexed Fixed
Stock Equity Equity Income
Fund Fund Fund Fund
------------ ------------ ------------ ------------
INVESTMENT INCOME (Notes 2, 3, and 4):
Interest $ 13,998 $ - $ - $ -
Net interest in master trust
investment income (loss) - 1,118,015 485,399 562,797
Realized gain on disposition of
investments 105,409 - - -
Unrealized appreciation (depreciation) of
investment in Owens Corning common stock 8,240,377 - - -
------------ ------------ ------------ ------------
8,359,784 1,118,015 485,399 562,797
------------ ------------ ------------ ------------
CONTRIBUTIONS (Notes 1 and 5):
Participants 4,552,962 2,107,032 450,693 1,645,528
Owens Corning 3,902,075 - - -
------------ ------------ ------------ ------------
8,455,037 2,107,032 450,693 1,645,528
------------ ------------ ------------ ------------
OTHER:
Distributions to participants (Note 5) (2,387,229) (676,740) (197,526) (881,878)
Election of redistribution among
funds (Note 1) (674,119) (29,606) 95,354 496,324
Administrative expenses (Note 1) (147,924) (31,478) (10,241) (27,132)
Rollovers and other (517,829) - - 9,409
------------ ------------ ------------ ------------
(3,727,101) (737,824) (112,413) (403,277)
------------ ------------ ------------ ------------
Net increase 13,087,720 2,487,223 823,679 1,805,048
------------ ------------ ------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS -
beginning of year 18,987,068 4,909,523 1,233,839 4,423,249
------------ ------------ ------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS -
end of year $ 32,074,788 $ 7,396,746 $ 2,057,518 $ 6,228,297
============ ============ ============ ============
The accompanying notes are an integral part of these statements.
-6-
OWENS CORNING
SAVINGS AND SECURITY PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
(Continued)
1 9 9 5
Supplemental Information By Fund
--------------------------------
Inter-
Balanced national
Fund Fund Total
------------ ------------ -----------
INVESTMENT INCOME (Notes 2, 3, and 4):
Interest $ - $ - $ 13,998
Net interest in master trust
investment income (loss) 42,115 36,337 2,244,663
Realized gain on disposition of
investments - - 105,409
Unrealized appreciation (depreciation) of
investment in Owens Corning common stock - - 8,240,377
------------ ------------ -----------
42,115 36,337 10,604,447
------------ ------------ -----------
CONTRIBUTIONS (Notes 1 and 5):
Participants 196,240 368,552 9,321,007
Owens Corning - - 3,902,075
------------ ------------ -----------
196,240 368,552 13,223,082
------------ ------------ -----------
OTHER:
Distributions to participants (Note 5) (27,312) (48,766) (4,219,451)
Election of redistribution among funds
(Note 1) 77,746 34,301 -
Administrative expenses (Note 1) (1,459) (2,553) (220,787)
Rollovers and other - - (508,420)
------------ ------------ -----------
48,975 (17,018) (4,948,658)
------------ ------------ -----------
Net increase 287,330 387,871 18,878,871
------------ ------------ -----------
NET ASSETS AVAILABLE FOR BENEFITS -
beginning of year 84,962 196,990 29,835,631
------------ ------------ -----------
NET ASSETS AVAILABLE FOR BENEFITS -
end of year $ 372,292 $ 584,861 $48,714,502
============ ============ ===========
The accompanying notes are an integral part of these statements.
-7-
OWENS CORNING
SAVINGS AND SECURITY PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 1995 1994 AND 1993
(Continued)
1 9 9 4
Supplemental Information By Fund
-------------------------------------------
Company Managed Indexed Fixed
Stock Equity Equity Income
Fund Fund Fund Fund
----------- ------------ ------------ ------------
INVESTMENT INCOME (Notes 2, 3, and 4):
Interest $ 8,607 $ - $ - $ -
Net interest in master trust
investment income (loss) - (331,597) 17,515 118,331
Realized gain on disposition of
investments 53,763 - - -
Unrealized appreciation (depreciation)
of investment in Owens Corning
common stock (5,327,966) - - -
----------- ------------ ------------ ------------
(5,265,596) (331,597) 17,515 118,331
----------- ------------ ------------ ------------
CONTRIBUTIONS (Notes 1 and 5):
Participants 4,362,861 2,110,553 429,578 1,512,410
Owens Corning 3,072,697 - - -
----------- ------------ ------------ ------------
7,435,558 2,110,553 429,578 1,512,410
----------- ------------ ------------ ------------
OTHER:
Distributions to participants (Note 5) (1,927,757) (630,131) (197,954) (682,076)
Election of redistribution among funds
(Note 1) 578,610 85,655 (148,570) (610,582)
Administrative expenses (Note 1) (83,295) (19,410) (7,330) (19,286)
Rollovers and other 20,664 10,143 3,267 1,416
----------- ------------ ------------ ------------
(1,411,778) (553,743) (350,587) (1,310,528)
----------- ------------ ------------ ------------
Net increase 758,184 1,225,213 96,506 320,213
----------- ------------ ------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS -
beginning of year 18,228,884 3,684,310 1,137,333 4,103,036
----------- ------------ ------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS -
end of year $18,987,068 $ 4,909,523 $ 1,233,839 $ 4,423,249
=========== ============ ============ ============
The accompanying notes are an integral part of these statements.
-8-
OWENS CORNING
SAVINGS AND SECURITY PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
(Continued)
1 9 9 4
Supplemental Information By Fund
----------------------------
Inter-
Balanced national
Fund Fund Total
------------ ------------ ------------
INVESTMENT INCOME (Notes 2, 3, and 4):
Interest $ - $ - $ 8,607
Net interest in master trust
investment income (loss) 693 (3,332) (198,390)
Realized gain on disposition of
investments - - 53,763
Unrealized appreciation (depreciation) of
investment in Owens Corning common stock - - (5,327,966)
------------ ------------ ------------
693 (3,332) (5,463,986)
------------ ------------ ------------
CONTRIBUTIONS (Notes 1 and 5):
Participants 58,031 136,176 8,609,609
Owens Corning - - 3,072,697
------------ ------------ ------------
58,031 136,176 11,682,306
------------ ------------ ------------
OTHER:
Distributions to participants (Note 5) (2,904) (882) (3,441,704)
Election of redistribution among funds (Note 1)29,390 65,497 -
Administrative expenses (Note 1) (248) (469) (130,038)
Rollovers and other - - 35,490
------------ ------------ ------------
26,238 64,146 (3,536,252)
------------ ------------ ------------
Net increase 84,962 196,990 2,682,068
------------ ------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS -
beginning of year - - 27,153,563
------------ ------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS -
end of year $ 84,962 $ 196,990 $ 29,835,631
============ ============ ============
The accompanying notes are an integral part of these statements.
-9-
OWENS CORNING
SAVINGS AND SECURITY PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
(Continued)
1 9 9 3
Supplemental Information By Fund
------------------------------------------------
Company Managed Indexed Fixed
Stock Equity Equity Income
Fund Fund Fund Fund Total
--------------------- ---------- ---------- ---------
INVESTMENT INCOME (Notes 2, 3, and 4):
Interest $ 4,014$ - $ - $ -$ 4,014
Net interest in master trust
investment income - 741,576 91,369 180,056 1,013,001
Unrealized appreciation of investment
in Owens Corning common stock 2,766,520 - - - 2,766,520
--------------------- ---------- ---------------------
2,770,534 741,576 91,369 180,056 3,783,535
--------------------- ---------- ---------------------
CONTRIBUTIONS (Notes 1 and 5):
Participants 3,369,881 1,144,432 414,042 1,557,351 6,485,706
Owens Corning 2,194,422 - - - 2,194,422
--------------------- ---------- ---------------------
5,564,303 1,144,432 414,042 1,557,351 8,680,128
--------------------- ---------- ---------------------
OTHER:
Distributions to participants (Note 5)(1,366,525) (250,355) (107,059) (470,393)(2,194,332)
Election of redistribution among funds
(Note 1) (171,299) 69,855 (59,598) 161,042 -
Administrative expenses (Note 1) (87,246) (12,336) (6,462) (18,067) (124,111)
Rollovers and other - 10,339 - - 10,339
--------------------- ---------- ---------------------
(1,625,070) (182,497) (173,119) (327,418)(2,308,104)
--------------------- ---------- ---------------------
Net increase 6,709,767 1,703,511 332,292 1,409,989 10,155,559
--------------------- ---------- ---------------------
NET ASSETS AVAILABLE FOR BENEFITS -
beginning of year 11,519,117 1,980,799 805,041 2,693,047 16,998,004
--------------------- ---------- ---------------------
NET ASSETS AVAILABLE FOR BENEFITS -
end of year $18,228,884$3,684,310 $1,137,333 $4,103,036$27,153,563
===================== ========== =====================
The accompanying notes are an integral part of these statements.
-10-
OWENS CORNING
SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS
(1) SUMMARY OF SIGNIFICANT PROVISIONS OF THE PLAN AND ACCOUNTING POLICIES
Operations of the Plan
----------------------
The Owens Corning Savings and Security Plan (the Plan) which was adopted
effective January 1, 1990, benefits designated groups of employees of
Owens Corning (the Company) and certain subsidiaries. An eligible
employee may elect to participate in the Plan on the first day of any
month after employment commences by filing an election to participate by
the 25th day of the preceding month.
Administrative expenses of the Plan including professional fees,
accounting fees and other administrative expenses are paid by the Plan
or the Company at the discretion of the Company. The Plan paid all of
administrative expenses in 1995, 1994 and 1993.
The following descriptions of the Plan provide only general information.
Participants should refer to the Plan agreement for a more complete
description of the Plan provisions.
Plan Contributions
------------------
Participants may contribute up to 15% of their base pay. All or a
portion of the participants' contributions may be designated at the
participants' option as deferred income which, pursuant to Section
401(k) of the Internal Revenue Code, is not subject to federal income
tax until such amounts are distributed to the participants. The Plan
requires participant contributions to be remitted to the Plan's trustee,
Citibank N.A., New York, (the Trustee) on a monthly basis.
The Company makes up to a 50% matching contribution for participant
contributions up to 7% of the participant's base pay at certain plant
locations.
Effective January 1, 1992, the Plan was amended to provide a retirement
contribution equal to a specified percentage of eligible pay (which
percentage varies by employee group) for participants who work at a
plant or business unit where a defined benefit pension plan is not
available.
The Company may, at its option, make Company contributions in the form
of cash or shares of common stock of the Company which are valued at the
market value of the shares on the tenth trading day of the month in
which the contribution is to be made. Contributions are remitted to the
Trustee on or before the last day of the month following employee
contributions. The Company satisfied a portion of its plan liability in
1994 through contribution of 29,559 shares of common stock of the
Company valued at $987,011. No Company contributions in the form of
shares of common stock were made in 1995 and 1993.
-11-
OWENS CORNING
SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS
(Continued)
(1) SUMMARY OF SIGNIFICANT PROVISIONS OF THE PLAN AND ACCOUNTING POLICIES
(Continued)
Plan Investment Options
-----------------------
Each participant elects to have his contribution invested in 10%
increments among the investment funds made available under the Plan.
Currently, the following six investment funds are available to
participants:
Company Stock Fund
------------------
Consists primarily of investments in Owens Corning common stock.
Managed Equity Fund
-------------------
Presently invested primarily in shares of the Acorn Fund, Inc., which
invests principally in domestic and foreign common stocks, but may also
include securities convertible into common stocks and equity securities
of a class different than common stock.
Indexed Equity Fund
-------------------
Presently invested primarily in a group trust maintained by Wells Fargo
Bank, N.A. which consists of a portfolio of equity securities maintained
to approximate the total rate of return of the securities of the
companies whose stocks make up the Standard & Poors' Composite Index.
Fixed Income Fund
-----------------
Presently invested primarily in the Pacific Investment Management
Company (PIMCO) Low Duration Fund, which invests in a variety of short-
term securities such as bonds, notes and debentures, having a maturity
of no longer than three years.
Balanced Fund
-------------
Presently invested primarily in the Dodge & Cox Balanced Fund, which
invests in both debt and equity securities.
International Fund
------------------
Presently invested primarily in the Templeton Group Foreign Fund, which
invests in stocks and debt securities of companies and governments
outside the United States.
-12-
OWENS CORNING
SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS
(Continued)
(1) SUMMARY OF SIGNIFICANT PROVISIONS OF THE PLAN AND ACCOUNTING POLICIES
(Continued)
The Company matching contributions are invested only in Company common
stock. The Trustee, at its sole discretion subject to any provisions in
the trust agreement, may hold any portion of any contributions in cash
which it considers necessary to meet anticipated disbursements. Company
contributions under the retirement contribution, for participants who
work at a plant or business unit where a defined benefit pension plan is
not available, are invested as participants direct among the plan's
investment funds.
Participants may change their investment options, contribution rate and
redistribute their account balances monthly. Participants may
discontinue their contributions to the Plan at any time.
The number of employees with a portion of their account invested in each
fund at December 31, 1995, was as follows:
Company Managed Indexed Fixed Inter-
Stock Equity Equity Income Balanced national
Fund Fund Fund Fund Fund Fund
------- -------- ------- ------- -------- --------
5,760 2,106 1,057 2,023 354 491
Basis of Accounting
-------------------
The accompanying financial statements have been prepared on the accrual
basis. Investments are reported at quoted market value. Participants'
withdrawal requests received by the plan administrator before year end
but not yet distributed to the participants are included as a component
of net assets available for benefits.
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management
to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Future
events could alter such estimates.
Income Taxes
------------
The Internal Revenue Service (IRS) has issued a determination
letter dated March 27, 1996 stating that the Plan meets the requirements
of Section 401(a) of the Internal Revenue Code (the Code) and that the
trust is exempt from taxation under Section 501(a) of the Code.
Participants generally are not subject to Federal income tax on Company
contributions or fund earnings until those amounts are distributed to
them. Participants may elect to designate all or a portion of their
contributions to the Plan as deferred income pursuant to Section 401(k)
of the Code. This election permits the participants to exclude from
gross taxable income for Federal tax purposes that portion of their
contribution so designated, subject to certain limitations, until such
time as it is withdrawn from the Plan.
-13-
OWENS CORNING
SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS
(Continued)
(1) SUMMARY OF SIGNIFICANT PROVISIONS OF THE PLAN AND ACCOUNTING POLICIES
(Continued)
Proceedings in the Event of Plan Termination
--------------------------------------------
Although it has not expressed any intent to do so, the Company
has the right to terminate the Plan. In the event of termination or
upon a permanent discontinuance of Company contributions, the plan
accounts of each participant not previously vested would fully vest.
Participants would, in accordance with the terms of the Plans, receive
their contributions to the Plan as well as Company contributions to the
Plan on their behalf and the earnings on those contributions.
(2) INVESTMENTS
Investments of the Plan are held in the Owens Corning Savings
Plans Master Trust (Master Trust) maintained by the Trustee for the
Plan and another savings plan of the Company. Investments in the
Company Stock Fund are separately identified to the Plan. Investments
in the Managed Equity Fund, Indexed Equity Fund, Fixed Income Fund,
Balanced Fund, and International Fund are commingled for investment
purposes.
The Plan has a proportionate claim on the net assets of the
commingled funds and receives a proportionate share of the investment
income of said funds. Following is a summary of the Master Trust
financial statements for the commingled funds and the Plan's interest
in net assets by fund as of and for the year ended December 31, 1995:
-14-
OWENS CORNING
SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS
(Continued)
(2) INVESTMENTS (Continued)
Shares/ Current or
Contract Contract Plan
Value Cost Value Interest
--------- ------ ----------- --------
ASSETS:
Investments-
Managed Equity Fund:
- --------------------
Liquid Reserve Fund
Commingled Employee
Benefit Trust $ 211,625 $ 211,625 $ 211,625 .1242
Acorn Fund, Inc. 4,322,946 43,260,104 58,792,069 .1242
Accrued interest and
dividends N/A N/A 880 .1239
-----------
$59,004,574
-----------
Indexed Equity Fund:
- --------------------
Liquid Reserve Fund
Commingled Employee
Benefit Trust $ 55,737 $ 55,737 $ 55,737 .1337
Wells Fargo Bank, N.A.
Index Equity Fund 840,567 11,570,307 15,181,052 .1337
Accrued interest and
dividends N/A N/A 242 .1322
-----------
$15,237,031
-----------
-15-
OWENS CORNING
SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS
(Continued)
(2) INVESTMENTS (Continued)
Shares/ Current or
Contract Contract Plan
Value Cost Value Interest
--------- ------ ----------- --------
Fixed Income Fund:
- ------------------
Liquid Reserve Fund
Commingled Employee
Benefit Trust $127,222 $ 127,222 $ 127,222 .1476
Pacific Investment
Management Company
Low Duration Fund 4,126,568 40,997,798 41,719,601 .1476
Accrued interest and
dividends N/A N/A 155 .1484
-----------
$ 41,846,978
-----------
Balanced Fund
- -------------
Liquid Reserve Fund
Commingled Employee
Benefit Trust $ 32,266 $ 32,266 $ 32,266 .0708
Dodge & Cox Balanced
Fund 92,598 4,680,620 5,055,872 .0708
Accrued interest and
dividends N/A N/A 170 .0706
-----------
$ 5,088,308
-----------
International Fund
- ------------------
Liquid Reserve Fund
Commingled Employee
Benefit Trust $ 45,277 $ 45,277 $ 45,277 .1059
Templeton Foreign Fund 582,137 5,485,980 5,344,021 .1059
Accrued interest and
dividends N/A N/A 215 .1070
-----------
$ 5,389,513
-----------
Net assets in Master Trust $126,566,404
===========
-16-
OWENS CORNING
SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS
(Continued)
(2) INVESTMENTS (Continued)
1995
Managed Indexed Fixed Inter-
Equity Equity Income Balanced national
Fund Fund Fund Fund Fund Total
---------- ---------- ------ ----------- --------------------
INVESTMENT INCOME:
Interest $ 16,316 $ 4,477 $ 72,623 $ 2,788 $ 4,080 $ 100,284
Dividends 4,640,843 365 2,446,454 199,294 293,823 7,580,779
Realized gain (loss)
on disposition of
investments 511,398 8,103 (88,712) (96) - 430,693
Change in unrealized
appreciation
(depreciation)
of investments 4,356,335 3,704,936 1,649,809 398,945 31,093 10,141,118
---------- -------------------------------- ----------------------
$9,524,892 $3,717,881 $ 4,080,174 $600,931 $ 328,996 $18,252,874
========== ================================ ======================
-17-
OWENS CORNING
SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS
(Continued)
(2) INVESTMENTS (Continued)
1994
Managed Indexed Fixed Inter-
Equity Equity Income Balanced national
Fund Fund Fund Fund Fund Total
---------- ---------- ------ ----------- --------------------
INVESTMENT INCOME:
Interest $ 9,459 $ 3,122 $ 699,169 $ 542 $ 986 $ 713,278
Dividends 2,483,356 201,648 1,668,162 39,283 123,017 4,515,466
Realized gain
(loss) on
disposition of
investments 1,697,490 2,958,570 (363,796) 2,558 - 4,294,822
Change in unrealized
appreciation
(depreciation)
of investments (8,214,698)(3,027,224) (808,234) (23,694) (173,051)(12,246,901)
---------- -------------------------------- ----------------------
$(4,024,393)$ 136,116$ 1,195,301$ 18,689$ (49,048)$(2,723,335)
========== ================================ ======================
-18-
OWENS CORNING
SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS
(Continued)
(2) INVESTMENTS (Continued)
1993
Managed Indexed Fixed
Equity Equity Income
Fund Fund Fund Total
----------- ----------------------------------
INVESTMENT INCOME:
Interest $ 15,612 $ 5,024 $ 2,452,724 $ 2,473,360
Dividends 2,391,153 262,096 - 2,653,249
Realized gain (loss)
on disposition of
investments 315,289 - - 315,289
Change in unrealized
appreciation
(depreciation)
of investments 9,357,478 648,373 (87,664) 9,918,187
----------- ---------- ------------ ------------
$12,079,532 $ 915,493 $ 2,365,060 $15,360,085
=========== ===================== ============
-19-
OWENS CORNING
SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS
(Continued)
(2)INVESTMENTS (Continued)
Investments are reported at quoted market value in all
funds in 1995, 1994 and 1993 except guaranteed investment
contracts in the Fixed Income Fund which were valued at the
contract value (Contract Value) in 1994 and 1993. Changes
in unrealized appreciation and depreciation are reflected
as changes in net assets available for benefits. Purchase
and sales are recorded on the trade date basis. Realized
gain and loss on sale of investments is computed using
average cost.
(3)UNREALIZED APPRECIATION/DEPRECIATION OF INVESTMENTS
Unrealized appreciation/depreciation, equal to the
difference between cost and quoted market value of
investments, is recognized in determining the value of each
fund except for certain investments in the Fixed Income
Fund which were carried at Contract Value in 1994 and 1993.
The change in unrealized appreciation/depreciation during
each of the three years ended December 31, 1995, is set
forth below. The balances for the Managed Equity Fund,
Indexed Equity Fund, Fixed Income Fund, Balanced Fund and
International Fund are the commingled amounts in the Master
Trust, while the Company Stock Fund amounts are specific to
the Plan. See Note 2 for the Plan's ownership in the
commingled funds.
-20-
OWENS CORNING
SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS
(Continued)
(3) UNREALIZED APPRECIATION/DEPRECIATION OF INVESTMENTS (Continued)
1995
Company Managed Indexed Fixed Inter-
Stock Equity Equity Income Balanced national
Fund Fund Fund Fund Fund Fund
---------------------- --------- --------- --------- ---------
Unrealized
appreciation
(depreciation)
at January 1,
1993 $3,571,138 $10,032,849 $2,284,659 $(32,107) $ - $ -
Change in
unrealized
appreciation
(depreciation)
during 1993 2,766,520 9,357,478 648,373 (87,664) - -
---------------------- ----------------------------------------
Unrealized
appreciation
(depreciation) at
December 31, 1993 6,337,658 19,390,327 2,933,032 (119,771) - -
Change in unrealized
appreciation
(depreciation)
during 1994 (5,327,966) (8,214,698)(3,027,224) (808,234) (23,694) (173,051)
---------------------- ----------------------------------------
Unrealized appreci-
ation (depreci-
ation) at December
31, 1994 1,009,692 11,175,629 (94,192) (928,005) (23,694)(173,051)
Change in unrealized
appreciation
(depreciation)
during 1995 8,240,377 4,356,335 3,704,936 1,649,809 398,945 31,093
---------------------- ----------------------------------------
Unrealized appreci-
ation (depreciation)
at December 31,
1995 $ 9,250,069 $15,531,964 $3,610,744 $721,804 $ 375,251$(141,958)
====================== ========================================
-21-
OWENS CORNING
SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS
(Continued)
(4) REALIZED GAINS/LOSSES
Gains or losses are realized when investments are sold.
(5) VESTING, FORFEITURES AND DISTRIBUTIONS
Company contributions and earnings thereon vest at the
rate of 20% on each year following date of hire by the
participant with the Company. Employees with at least
five years of employment are fully vested in all Company
contributions. Such amounts also become fully vested
upon the participant attaining 65 years of age,
termination of the participant's employment due to a
permanent plant closing, retirement, disability or
death, termination of the Plan, or permanent
discontinuance of the prescribed Company contributions
to the Plan. Such vested contributions and earnings
thereon are automatically distributable upon attaining
65 years of age or death. If termination of employment
occurs for any reason other than attaining 65 years of
age or death, the participant's account will become
distributable at 65 years of age or death unless an
election for immediate distribution is filed within 60
days of termination with the Plan administrator.
Participants may elect to withdraw all or any part of
the value of their contributions excluding contributions
designated as deferrals on a semi-annual basis.
Withdrawals of deferrals may only be made prior to
termination of employment upon proof of financial
hardship deemed adequate by the Plan administrator.
However, upon attainment of age 59-1/2 years,
participants may elect to withdraw deferrals and
earnings thereon. Participants who voluntarily
terminate or are terminated for cause will forfeit the
nonvested portion of the Company contributions and
related earnings which are applicable to the
distribution. Forfeitures are applied to reduce
subsequent Company contributions to the Plan. The
market value forfeited by employees receiving
distributions from the Plan was approximately $24,000 in
1995, $19,000 in 1994 and $7,000 in 1993.
Participants may elect to receive their distributions
from the Company Stock Fund in the form of cash or
Company stock. Stock distributions totaled 15,252
shares of stock valued at $521,000 in 1995, 9,638 shares
of stock valued at $350,000 in 1994, and 2,166 shares of
stock valued at $90,000 in 1993.
Participants' requests for cash withdrawals made prior
to December 31, 1995, and subsequently paid were as
follows:
Company Stock Fund $ 57,556
Managed Equity Fund 13,306
Indexed Equity Fund -
Fixed Income Fund 49,585
Balanced Fund 898
International Fund 2,444
----------
$ 123,789
==========
-22-
OWENS CORNING
SAVINGS AND SECURITY PLAN
NOTES TO FINANCIAL STATEMENTS
(Continued)
(5) VESTING, FORFEITURES AND DISTRIBUTIONS (Continued)
Participants' requests for distributions in the form of
Company stock made prior to December 31, 1995, and
subsequently distributed were 121 shares of stock valued
at $5,400.
(6) SUBSEQUENT EVENT
Subsequent to year end Owens Corning adopted several
amendments revising the Savings and Security Plan. The
most significant amendments affect the Company matching
and profit sharing contributions and the vesting
schedule applicable to certain employee groups.
Effective January 1, 1996, the Company's matching
contribution will be lowered from 50% to 35% of
participant contributions up to 10% of base salary for
certain covered employee groups. Also effective in the
1996 plan year, the Company may, at its discretion, make
an annual Profit Sharing Contribution to the plan on
behalf of one or more covered employee groups. One-half
of the Company's annual Profit Sharing Contribution, if
any, will be invested exclusively in Company stock.
Effective January 1, 1996, a new vesting schedule was
adopted whereby certain covered employee groups become
100% vested in Company contributions and earnings
thereon after three years of completed service, however,
affected employees with less than three years of service
on the effective date will continue to vest at the rate
of 20% per year until they reach three years of service
at which time they will become 100% vested
-23-
OWENS CORNING
SAVING AND SECURITY PLAN
EIN: 34-4323452 PN: 014 SCHEDULE
I
Item 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1995
Current
Identity of Issuer Description of Investment Cost Value
*Citibank, N.A. 623,025 shares of Liquid $ 623,025 $ 623,025
Reserve Fund Commingled
Employee Benefit Trust
*Owens Corning 702,975 shares of common $22,295,934 $31,546,003
stock
*Citibank, N.A. Investment in master trust $13,943,072 $16,471,872
collective funds
$36,862,031 $48,640,900
* Represents a party in interest
-24-
OWENS CORNING
SAVING AND SECURITY PLAN
EIN: 34-4323452 PN: 014 SCHEDULE II
Item 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
Current
Value at
Description Purchase Sales Cost of Transaction Net Gain/
Party Involved of Asset Transactions Price Price Asset Date (Loss)
*Citibank, N.A. Purchase of 51 $8,035,641 N/A$8,035,641$8,035,641 N/A
shares of
Liquid Reserve
Fund Commingled
Employee
Benefit Trust
*Citibank, N.A. Sale of 47 N/A$8,109,972$8,109,972$8,109,972 $-
8,109,972
Shares of
Liquid Reserve
Fund Commingled
Employee
Benefit Trust
*Owens Corning Purchase of 19 $5,725,337 N/A$5,725,337 $5,725,337 N/A
150,724
shares of
Owens Corning
common stock.
*Owens Corning Sale of 12,756 1 N/A $500,018$ 394,609 $500,018 $105,409
shares of Owens
Corning Common
Stock