EXHIBIT 25(c)
TO FORM 10-K
ANNUAL REPORT
OF
VULCAN MATERIALS COMPANY
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1993
UNDER THE SECURITIES EXCHANGE ACT OF 1934
FINANCIAL STATEMENTS REQUIRED BY FORM 11-K WITH
RESPECT TO THE VULCAN MATERIALS COMPANY CHEMICALS
DIVISION HOURLY EMPLOYEES SAVINGS PLAN FOR THE
FISCAL YEAR ENDED DECEMBER 31, 1993, AND THE INDEPENDENT
CERTIFIED ACCOUNTANTS' CONSENT WITH RESPECT THERETO
FILED AS AN AMENDMENT TO THE VULCAN MATERIALS
COMPANY ANNUAL REPORT ON FORM 10-K FOR THE
FISCAL YEAR ENDED DECEMBER 31, 1993,
AS PERMITTED BY RULE 15d-21
UNDER THE SECURITIES EXCHANGE ACT OF 1934
VULCAN MATERIALS COMPANY
VULCAN MATERIALS COMPANY
CHEMICALS DIVISION HOURLY
EMPLOYEES SAVINGS PLAN
FINANCIAL STATEMENTS FOR THE YEARS
ENDED DECEMBER 31, 1993 AND 1992, AND
INDEPENDENT AUDITORS' REPORT.
VULCAN MATERIALS COMPANY
CHEMICALS DIVISION HOURLY EMPLOYEES SAVINGS PLAN
Table of Contents
Page
Independent Auditors' Report
Financial Statements of the Vulcan Materials Company
Chemicals Division Hourly Employees Savings Plan:
Statements of Net Assets Available for Benefits
as of December 31, 1993 and 1992
Statements of Changes in Net Assets Available
for Benefits for the Years Ended
December 31, 1993 and 1992
Notes to Financial Statements
Independent Auditors' Consent
VULCAN MATERIALS COMPANY
CHEMICALS DIVISION
HOURLY EMPLOYEES SAVINGS PLAN
Financial Statements for the Years
Ended December 31, 1993 and 1992
and Independent Auditors' Report
INDEPENDENT AUDITORS' REPORT
To the Administrative Committee of Vulcan Materials Company
Chemicals Division Hourly Employees Savings Plan:
We have audited the accompanying statements of net assets available for
benefits of the Vulcan Materials Company Chemicals Division Hourly Employees
Savings Plan as of December 31, 1993 and 1992, and the related statements of
changes in net assets available for 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, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan at December 31,
1993 and 1992, and the changes in net assets available for benefits for the
years then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information by fund
is presented for the purpose of additional analysis of the basic financial
statements rather than to present information regarding the net assets
available for benefits and changes in net assets available for benefits of the
individual funds, and is not a required part of the basic financial
statements. This supplemental information is the responsibility of the Plan's
management. Such supplemental information by fund has been subjected to the
auditing procedures applied in our audits of the basic financial statements
and, in our opinion, is fairly stated in all material respects when considered
in relation to the basic financial statements taken as a whole.
/s/ Deloitte & Touche
Birmingham, Alabama
June 15, 1994
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement
No. 33-24051 of Vulcan Materials Company on Form S-8 of our reports dated
February 4, 1994 and June 15, 1994, appearing in the Annual Report on Form
10-K of Vulcan Materials Company for the year ended December 31, 1993
and in the Annual Report on Form 11-K of the Vulcan Materials Company
Chemicals Division Hourly Employees Savings Plan for the year ended
December 31, 1993, respectively. We also consent to the reference to us
under the heading "Experts" in the Registration Statement.
/s/ Deloitte & Touche
Birmingham, Alabama
June 24, 1994
VULCAN MATERIALS COMPANY
CHEMICALS DIVISION HOURLY EMPLOYEES SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1993 AND 1992
1993 1992
Supplemental Information by Fund Supplemental Information by Fund
Vulcan Vulcan
Large Materials Large Materials
Guaranteed Companies Company Guaranteed Companies Company
Investment Common Common Investment Common Common
Total Contracts Stock Stock Total Contracts Stock Stock
ASSETS:
INVESTMENTS [Cost of $15,602,729
(1993) and $14,069,626 (1992)]
(Notes 1, 3 & 5):
Collective short-term
investments $15,595 $15,438 $8 $149 $15,748 $15,590 $6 $152
Guaranteed investment
contracts 13,119,928 13,119,928 12,027,962 12,027,962
Commingled funds holding
principally common stock 542,420 542,420 314,738 314,738
Fund holding principally
Vulcan Materials Company
common stock 2,269,969 2,269,969 2,058,828 2,058,828
Total investments 15,947,912 13,135,366 542,428 2,270,118 14,417,276 12,043,552 314,744 2,058,980
RECEIVABLE FROM
VULCAN MATERIALS
COMPANY:
Employer contributions 49,191 49,191 44,176 44,176
Employee contributions 138,284 88,834 10,736 38,714 139,138 89,142 8,746 41,250
Total receivable 187,475 138,025 10,736 38,714 183,314 133,318 8,746 41,250
TOTAL ASSETS 16,135,387 13,273,391 553,164 2,308,832 14,600,590 12,176,870 323,490 2,100,230
TRANSFERS IN PROCESS (28,700) 18,711 9,989
NET ASSETS AVAILABLE
FOR BENEFITS $16,135,387 $13,244,691 $571,875 $2,318,821 $14,600,590 $12,176,870 $323,490 $2,100,230
<FN>
See notes to financial statements.
VULCAN MATERIALS COMPANY
CHEMICALS DIVISION HOURLY EMPLOYEES SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 1993 AND 1992
1993 1992
Supplemental Information by Fund Supplemental Information by Fund
Vulcan Vulcan
Large Materials Large Materials
Guaranteed Companies Company Guaranteed Companies Company
Investment Common Common Investment Common Common
Total Contracts Stock Stock Total Contracts Stock Stock
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
INVESTMENT INCOME (LOSS):
Interest $817,064 $815,964 $140 $960 $944,332 $942,944 $260 $1,128
Dividends 57,930 57,930 35,318 35,318
Net investment gains (losses):
Realized 8,803 1,366 7,437 2,448 2,448
Unrealized (Note 4) (2,467) 68,041 (70,508) 407,564 34,797 372,767
Net investment income 881,330 815,964 69,547 (4,181) 1,389,662 942,944 37,505 409,213
CONTRIBUTIONS (Note 2):
Participants 1,329,129 843,136 95,016 390,977 1,347,090 922,786 100,080 324,224
Vulcan Materials Company 435,262 435,262 422,717 422,717
Total contributions 1,764,391 1,278,398 95,016 390,977 1,769,807 1,345,503 100,080 324,224
REDISTRIBUTION OF
PARTICIPANTS' INVESTMENT
OPTIONS UNDER THE PLAN (67,173) 101,349 (34,176) (720,703) 81,217 639,486
TOTAL ADDITIONS 2,645,721 2,027,189 265,912 352,620 3,159,469 1,567,744 218,802 1,372,923
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
WITHDRAWALS BY
PARTICIPANTS (Note 2) (1,110,924) (959,368) (17,527) (134,029) (804,088) (750,365) (4,032) (49,691)
NET INCREASE 1,534,797 1,067,821 248,385 218,591 2,355,381 817,379 214,770 1,323,232
NET ASSETS AVAILABLE
FOR BENEFITS:
BEGINNING OF YEAR 14,600,590 12,176,870 323,490 2,100,230 12,245,209 11,359,491 108,720 776,998
END OF YEAR $16,135,387 $13,244,691 $571,875 $2,318,821 $14,600,590 $12,176,870 $323,490 $2,100,230
<FN>
See notes to financial statements.
VULCAN MATERIALS COMPANY
CHEMICALS DIVISION HOURLY EMPLOYEES SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General - The financial statements of the Vulcan Materials Company Chemicals
Division Hourly Employees Savings Plan ("Plan") have been prepared on the
accrual basis of accounting. All assets of the Plan are held by The Northern
Trust Company, Chicago, Illinois ("Trustee"). Vulcan Materials Company
("Company") pays the administrative costs of the Plan, including the trustee's
fees and charges.
Valuation of Investments - Investments other than guaranteed investment
contracts are reported at market value. Investments in securities traded on
national and over-the-counter exchanges are valued at the closing bid price of
the security as of the last day of the year. Guaranteed investment contracts
are reported at their contract value, which is cost increased by interest
earned. The average cost of securities sold or distributed is used to
determine net investment gains (losses) realized. Security transactions are
recorded on the trade date. Distributions of common stock, if any, to
participants are recorded at the market value of such stock at the end of the
month prior to distribution.
Benefits Payable - In 1993, the Plan changed its method of accounting for
benefits payable to comply with the 1993 AICPA Audit and Accounting Guide,
"Audits of Employee Benefit Plans." The new guidance requires that benefits
payable to persons who have withdrawn from participation in a defined
contribution plan be disclosed in the footnotes to the financial statements
rather than be recorded as a liability of the Plan. Such amounts as of
December 31, 1992 have been reclassified to net assets available for benefits.
As of December 31, 1993 and 1992, benefits of $55,517 and $30,809,
respectively, were due to participants who had elected to receive a
distribution from the Plan.
2. DESCRIPTION OF THE PLAN
General - The Plan was established effective January 1, 1972 and was most
recently restated as of May 1, 1991. The purpose of the Plan is to provide
for accumulation of savings for qualifying hourly paid employees of the
Chemicals Division of Vulcan Materials Company ("Employer") who are
represented by collective bargaining units which have specifically adopted the
Plan.
Participation and Vesting - Chemicals Division Hourly employees, with one year
of service covered by a collective bargaining unit which has adopted the Plan,
are eligible for participation. Participants are fully vested at all times.
The number of participants in the Plan at December 31, 1993 and 1992
was as follows:
1993 1992
Total participants 551 555
Participants included in the above total who have
transferred to a bargaining unit not covered by the
Plan, or are no longer employed by the Company,
but who have vested benefits under the Plan 29 41
Funding - The Plan is funded through participants' and Company contributions.
Participants contribute to the Plan through weekly payroll deductions at a
rate dependent upon the participant's years of service. A participant may
make weekly matched contributions, in multiples of $1 with a minimum weekly
matched contribution of $1 and a maximum weekly matched contribution as stated
in the plan document for the participants' collective bargaining unit.
Company contributions equal a percentage of participants' contributions, such
percentage being defined in the plan document for the collective bargaining
unit covering the participant. In addition to the matched contributions,
participants may make weekly unmatched contributions in multiples of $1 with a
minimum of $1 and a maximum as stated in the applicable plan document for the
participants' collective bargaining agreement.
Allocation and Determination of Accounts - Separate accounts are maintained
for each participant for matched, unmatched, deductible supplemental, Company
contributions and accumulated earnings on each. Additionally, subaccounts are
maintained for matched and unmatched accounts for the portion of each account
that is attributable to pre-tax contributions and the portion attributable to
after-tax contributions. Monthly net earnings are allocated to each
participant's account in the ratio of the participant's account balance to
total participants' account balances.
Distributions and Withdrawals - A participant's total account is distributed
upon retirement, disability, death or termination of employment unless the
account value is greater than $3,500, in which case the participant may defer
until age 70-1/2. Prior to a termination of employment, participants may make
partial withdrawals or may withdraw their total account, except that if a
participant has not maintained a participant contribution account for the 60
months immediately preceding the voluntary withdrawal, no Company
contributions which have been on deposit less than 24 months will be
distributed until 24 months after the earlier of the employee's withdrawal
date or the employee's termination of employment. In addition, any in-service
distribution from a participant's pre-tax contributions must meet the
requirements of a "hardship withdrawal," as set forth in the Plan document.
Investments - Participants' contributions are invested in three separate
investment funds (see Note 5) of the Plan in proportions elected by the
participant. The Company's matching contributions are invested in the fund
which invests primarily in guaranteed investment contracts.
Plan Termination - In the event it becomes necessary to terminate the Plan,
participants will receive a distribution of the amounts held for their
accounts.
3. INVESTMENTS
The Plan's investment assets consist of an interest in one of the investment
accounts of the Vulcan Materials Company Master Trust ("Master Trust")
administered by Northern Trust Company. Use of the Master Trust permits the
commingling of investment assets of a number of employee benefit plans of the
Participating Companies. Although the assets are commingled, the Company
maintains supporting records for the purpose of allocating the investment
assets and the related net earnings to the various participating employee
benefit plans.
The investment accounts of the Master Trust at December 31, 1993 and 1992 are
summarized as follows:
1993 1992
Pension Investment Account $270,465,591 $248,841,858
Thrift Plan Investment Account 153,862,152 152,945,331
Chemicals Savings Account 16,135,387 14,600,590
Construction Savings Account 8,160,414 6,869,461
Net assets $448,623,544 $423,257,240
The net assets of the Master Trust at December 31, 1993 and 1992 are
summarized as follows:
1993 1992
Commingled fund holding principally
short-term fixed income investments,
and loans to participants $18,678,781 $18,906,750
Guaranteed investment contracts 19,803,668 17,783,818
Fund holding principally real estate
investments 12,044,398 15,171,552
Fund holding principally intermediate-
term fixed income investments 57,877,310 41,202,434
Commingled funds holding principally
common stock 157,489,866 172,504,398
Commingled funds holding principally
international equity instruments 73,558,068 47,716,502
Fund holding principally Vulcan Materials
Company common stock 109,171,453 109,971,786
Net assets $448,623,544 $423,257,240
The total investment income by type of the Master Trust at December 31, 1993
and 1992 are summarized as follows:
1993 1992
Interest, net $1,897,072 $2,112,527
Dividends 2,898,022 2,732,726
Other 69,745 60,668
Net investment gains:
Realized 24,636,203 9,181,194
Unrealized 5,391,112 35,673,442
$34,892,154 $49,760,557
Investments held by the Plan at December 31, 1993 and 1992 respectively, are
as follows:
1993 1992
Collective short-term investments
(cost and market) $15,595 $15,748
Guaranteed investment contracts (at contract value):
Insurance Contract Guaranteed
Company Year Rate* Maturity Dates 1993 1992
Metropolitan Life 1990 9.33% May 1, 1993 $4,137,672
Metropolitan Life 1991 6.09%** May 1, annually $13,119,928 7,890,290
Total $13,119,928 $12,027,962
<FN>
* Rates are net of insurance company charges.
** Interest rate was 8.22% from January 1 - April 30, 1992, 7.43% from
May 1, 1992 - April 30, 1993, and 6.09% from May 1 - December 31, 1993.
Upon maturity, the Company renegotiates new terms on these contracts.
Commingled funds:
1993 1992
Cost Market Cost Market
Commingled funds holding
principally common stock -
1,909.70 shares (1993) and
1,310.15 shares (1992) $430,363 $542,420 $270,722 $314,738
Fund holding principally Vulcan
Materials Company common
stock - 48,426 shares (1993)
and 42,670 shares (1992) $2,036,843 $2,269,969 $1,755,194 $2,058,828
4. CHANGES IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS
Investments held by the Plan at December 31, 1993 and 1992 and changes in
unrealized appreciation (depreciation) of investments for the years then ended
are summarized below:
Market or Current Year Prior Years
Contract Cumulative Appreciation Appreciation
Cost Value Appreciation (Depreciation) (Depreciation)
December 31, 1993:
Collective short-term
investments $15,595 $15,595
Guaranteed investment
contracts 13,119,928 13,119,928
Commingled funds
holding principally
common stock 430,363 542,420 $112,057 $68,041 $44,016
Fund holding principally
Vulcan Materials
Company common
stock 2,036,843 2,269,969 233,126 (70,508) 303,634
Total $15,602,729 $15,947,912 $345,183 ($2,467) $347,650
Market or Current Year Prior Years
Contract Cumulative Appreciation Appreciation
Cost Value Appreciation (Depreciation) (Depreciation)
December 31, 1992:
Collective short-term
investments $15,748 $15,748
Guaranteed investment
contracts 12,027,962 12,027,962
Commingled funds
holding principally
common stock 270,722 314,738 $44,016 $34,797 $9,219
Fund holding principally
Vulcan Materials
Company common
stock 1,755,194 2,058,828 303,634 372,767 (69,133)
Total $14,069,626 $14,417,276 $347,650 $407,564 ($59,914)
5. INVESTMENT PROGRAM
The number of participants electing each investment option is shown below:
As of December 31,
1993 1992
(a) A fund invested in guaranteed
investment contracts 245 253
(b) Commingled funds invested
primarily in common stocks
of large companies 6 6
(c) Common stock of Vulcan
Materials Company 31 28
(d) Any combination of (a),
(b) or (c) 269 268
Investment managers have been appointed whose duty is to advise the trustee as
to particular investments to be made. As of December 31, 1993, the investment
managers were as follows:
(1) Large companies Trinity Investment Management Corporation
common stock fund Ten Tremont Street
Boston, Massachusetts 02108
(2) Guaranteed investment The Northern Trust Company
contracts and Vulcan 50 South LaSalle Street
Materials Company Chicago, Illinois 60675
stock fund
6. TAX STATUS
The Plan obtained its latest determination letter on June 14, 1993, which the
Internal Revenue Service stated that the Plan, as then designed, was in
compliance with the applicable requirements of the Internal Revenue Code. The
Plan has been amended since receiving the determination letter. However, the
Plan administrator and the Plan's tax counsel believe that the Plan is
currently designed and being operated in compliance with the applicable
requirements of the Internal Revenue Code. Therefore, no provision for income
taxes has been included in the Plan's financial statements.