EXHIBIT 99.1
FORM 11-K
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
X Annual Report Pursuant to Section 15(d) of the
Securities Exchange Act of 1934 [Fee Required]
For the Fiscal Year Ended December 31, 1996
___ Transition Report Pursuant to Section 15(d) of the
Securities Exchange Act of 1934 [No Fee Required]
For the Transition Period From ___________ To __________
Commission File Number 1-5502
ZURN RETIREMENT SAVINGS PLAN
(Full title of the Plan)
ZURN INDUSTRIES, INC.
One Zurn Place, Erie, Pennsylvania 16505
(Name and address of issuer of securities held pursuant to the Plan)
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Pension Committee
Zurn Industries, Inc.
Erie, Pennsylvania
We have audited the accompanying statements of net assets available for
benefits of the Zurn Retirement Savings Plan as of December 31, 1996 and 1995,
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 administrator. 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 the 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 Zurn
Retirement Savings Plan as of December 31, 1996 and 1995, and the changes in
its net assets available for benefits for the years then ended, in conformity
with generally accepted accounting principles.
Our audits were made for the purpose of expressing an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
held for investment purposes at December 31, 1996, and loans or fixed income
obligations for the year then ended, are presented for the purpose of
additional analysis and are not a required part of the basic financial
statements but are supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. The supplemental schedules have been
subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
/s/ Pashke Twargowski & Lee
Erie, Pennsylvania
June 26, 1997
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STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
ZURN RETIREMENT SAVINGS PLAN
December 31
1996 1995
ASSETS
Investments in T. Rowe Price Funds:
U.S. Treasury Money $ 2,458,129 $2,608,541
U.S. Treasury Intermediate 99,049 69,515
New Income 712,818 658,843
Balanced 355,925 223,059
Capital Appreciation 3,294,948 2,871,205
Equity Index 3,534,246 2,582,553
International Stock 546,469 424,092
Small-Cap Stock 588,538 205,270
Zurn Stock Fund 50,718
11,640,840 9,643,078
Contributions receivable 31,537 24,080
Participants' loans 258,072 210,856
NET ASSETS AVAILABLE FOR BENEFITS $11,930,449 $9,878,014
See notes to financial statements.
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STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
ZURN RETIREMENT SAVINGS PLAN
Year Ended December 31, 1996
T. Rowe Price Funds
U.S. Treasury New Capital
Money Intermediate Income Balanced Appreciation
ADDITIONS
Investment income:
Dividends $ 116,946 $ 5,162 $ 45,589 $ 13,808 $ 309,502
Net appreciation (depreciation)
in value of investments (2,713) (28,403) 24,903 168,524
116,946 2,449 17,186 38,711 478,026
Participants' contributions 433,845 35,603 147,238 113,200 482,575
Participants' loan interest 3,279 1,304 677 1,983 4,098
TOTAL ADDITIONS 554,070 39,356 165,101 153,894 964,699
BENEFITS PAID TO PARTICIPANTS 431,483 542 73,789 61,938 348,733
NET ADDITIONS 122,587 38,814 91,312 91,956 615,966
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 2,608,541 69,515 658,843 223,059 2,871,205
Transfers (272,999) (9,280) (37,337) 40,910 (192,223)
End of year $2,458,129 $99,049 $712,818 $355,925 $3,294,948
See notes to financial statements.
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/TABLE
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS - Continued
ZURN RETIREMENT SAVINGS PLAN
Year Ended December 31, 1996
T. Rowe Price Funds Zurn
Equity International Small-Cap Stock
Index Stock Stock Fund Other Total
ADDITIONS
Investment income:
Dividends $ 119,082 $ 14,639 $ 49,750 $ 674,478
Net appreciation in
value of investments 517,788 54,199 19,899 $ 4,341 758,538
636,870 68,838 69,649 4,341 1,433,016
Participants' contributions 448,986 129,052 118,209 11,740 $ 7,457 1,927,905
Participants' loan interest 5,833 577 341 18,092
TOTAL ADDITIONS 1,091,689 198,467 188,199 16,081 7,457 3,379,013
BENEFITS PAID TO PARTICIPANTS 286,908 79,704 13,538 29,943 1,326,578
NET ADDITIONS (DEDUCTIONS) 804,781 118,763 174,661 16,081 (22,486) 2,052,435
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 2,582,553 424,092 205,270 234,936 9,878,014
Transfers 146,912 3,614 208,607 34,637 77,159
End of year $3,534,246 $546,469 $588,538 $50,718 $289,609 $11,930,449
See notes to financial statements.
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/TABLE
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
ZURN RETIREMENT SAVINGS PLAN
Year Ended December 31, 1995
T. Rowe Price Funds
U.S. Treasury New Capital
Money Intermediate Income Balanced Appreciation
ADDITIONS
Investment income:
Dividends $ 125,150 $ 3,260 $ 36,488 $ 7,590 $ 224,572
Net appreciation in
value of investments 4,035 53,407 21,570 270,135
125,150 7,295 89,895 29,160 494,707
Participants' contributions 538,334 80,697 161,506 76,928 508,542
Participants' loan interest 2,972 1,006 577 1,036 3,788
TOTAL ADDITIONS 666,456 88,998 251,978 107,124 1,007,037
BENEFITS PAID TO PARTICIPANTS 275,850 764 52,008 3,998 128,003
NET ADDITIONS 390,606 88,234 199,970 103,126 879,034
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 2,232,858 26,922 445,518 58,186 2,070,228
Transfers (14,923) (45,641) 13,355 61,747 (78,057)
End of year $2,608,541 $ 69,515 $658,843 $223,059 $2,871,205
See notes to financial statements.
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/TABLE
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS - Continued
ZURN RETIREMENT SAVINGS PLAN
Year Ended December 31, 1995
T. Rowe Price Funds
Equity International Small-Cap
Index Stock Stock Other Total
ADDITIONS
Investment income:
Dividends $ 99,425 $ 12,780 $ 23,671 $ 532,936
Net appreciation in
value of investments 553,875 25,783 14,782 943,587
653,300 38,563 38,453 1,476,523
Participants' contributions 444,790 120,500 53,309 $ (6,289) 1,978,317
Participants' loan interest 4,871 530 55 14,835
TOTAL ADDITIONS 1,102,961 159,593 91,817 (6,289) 3,469,675
BENEFITS PAID TO PARTICIPANTS 117,529 3,424 1,476 1,729 584,781
NET ADDITIONS (DEDUCTIONS) 985,432 156,169 90,341 (8,018) 2,884,894
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 1,611,665 306,343 84,488 156,912 6,993,120
Transfers (14,544) (38,420) 30,441 86,042
End of year $2,582,553 $424,092 $205,270 $234,936 $9,878,014
See notes to financial statements.
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/TABLE
NOTES TO FINANCIAL STATEMENTS
ZURN RETIREMENT SAVINGS PLAN
December 31, 1996
PLAN DESCRIPTION
The Zurn Retirement Savings Plan is a defined contribution plan providing
retirement benefits through participant-directed investments to participants
in the Zurn Industries Retirement Plan and Cosco Fire Protection Plan for
Salaried Employees. It is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA).
The Company has agreed to contribute participants' elective deferrals of up to
20% of eligible compensation. Participants also may contribute non-taxed
distributions from other employers' qualified plans and they may borrow from
their accounts subject to specified limitations.
Information about the Plan agreement and the benefit provisions is contained
in the "Summary Plan Description" which may be obtained from Zurn Industries,
Inc., the Plan Administrator.
SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price Investments The investments are stated at market value as
determined by the funds.
Zurn Stock Fund Zurn Industries, Inc. common stock (1,893 shares) is stated
at its quoted market value. A percentage of the Fund is invested in the T.
Rowe Price Prime Reserve Fund ($1,076) for investment diversification
liquidity. Dividend income from these investments is included in investment
income as a component of the net appreciation in the value of investments.
Investment Transactions Investment transactions are recorded as of the date
the order to buy or sell is executed with realized gains and losses being
included in investment income as a component of the net appreciation
(depreciation) in the value of investments.
Participants' Loans Participants' loans are stated at the principal amount
due from the participants.
Dividends Dividend income is recognized on the ex-dividend date.
Expenses Administrative expenses are paid by the Plan Administrator.
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INCOME TAX STATUS
The Internal Revenue Service has ruled that the Plan qualifies under Section
401(a) of the Internal Revenue Code and is, therefore, not subject to tax
under present income tax law. Once qualified, the Plan is required to operate
in conformity with the Code to maintain its qualification. The Plan
Administrator is not aware of any course of action or series of events that
might adversely affect the Plan's qualified status.
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SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
ZURN RETIREMENT SAVINGS PLAN
December 31, 1996
ASSETS OWNED AT YEAR-END
Cost Current Value
T. Rowe Price Funds:
U.S. Treasury Money $2,458,129 $2,458,129
U.S. Treasury Intermediate 99,100 99,049
New Income 717,891 712,818
Balanced 317,794 355,925
Capital Appreciation 2,962,705 3,294,948
Equity Index 2,533,257 3,534,246
International Stock 499,914 546,469
Small-Cap Stock 566,351 588,538
Zurn Stock Fund 46,377 50,718
Participants' loans - 7% to 10% interest -0- 258,072
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SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
ZURN RETIREMENT SAVINGS PLAN
Year Ended December 31, 1996
Amount Received
Original During The Year Unpaid Amount Overdue
Amount Principal Interest Balance Principal Interest
Michael P. Higgins $6,000 $ 40 $16 $-0- $5,109 $-0-
2766 Rippling Participant loan - 8.25%
Brook Place Distributed to participant
Ontario, CA 91761
Robert V. Seibel 6,000 170 16 -0- 2,483 -0-
5650 Gardner Drive Participant loan - 7%
Erie, PA 16509 3,000 120 18 -0- 2,065 -0-
Participant loan - 10%
Distributed to participant
James M. Wittmaak 3,000 93 28 -0- 2,078 -0-
5973 Buman Road Participant loan - 7.75%
McKean, PA 16426 Distributed to participant
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Pension Committee of Zurn Industries, Inc. has duly caused this
annual report to be signed on its behalf by the undersigned thereunto duly
authorized.
ZURN RETIREMENT SAVINGS PLAN
(Plan)
June 26, 1997 /s/ James A. Zurn
James A. Zurn, Chairman
Pension Committee of
Zurn Industries, Inc.
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CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement on
Form S-8 No. 333-00823 pertaining to the Zurn Retirement Savings Plan of our
report dated June 26, 1997 with respect to the financial statements and
supplemental schedules included in the Annual Report on Form 11-K of the Zurn
Retirement Savings Plan.
/s/ Pashke Twargowski & Lee
Erie, Pennsylvania
June 27, 1997
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