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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1997
[_] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission file number 333-04963
------------------------
CASE CORPORATION RETIREMENT SAVINGS PLAN
(Full Title of the Plan)
CASE CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 76-0433811
(State of Incorporation) (I.R.S. Employer Identification Number)
700 State Street
Racine, Wisconsin 53404
414-636-6011
(Address, including zip code, and telephone number, including area code,
of registrant's principal executive offices)
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Item 1. Financial Statements and Exhibits
---------------------------------
Listed below are the financial statements and exhibits filed as a part
of this annual report:
(a) Financial Statements-
(i) Report of Independent Public Accountants
(ii) Statements of Net Assets Available for Benefits With Fund
Information:
As of December 31, 1997 and 1996
(iii) Statement of Changes in Net Assets Available for
Benefits With Fund Information:
For the Year Ended December 31, 1997
(iv) Notes to Financial Statements
(v) Supplemental Schedules:
Schedule I - Item 27(a): Schedule of Assets Held for
Investment Purposes
Schedule II - Item 27(d): Schedule of Reportable
Transactions
(b) Exhibit-
(i) Exhibit 1 - Consent of Independent Public Accountants
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this annual report to be signed on its behalf by the
undersigned thereunto duly authorized.
CASE CORPORATION
RETIREMENT SAVINGS PLAN
/s/ Marc J. Castor
By ___________________________________
Marc J. Castor
Vice President, Human Resources
Date: June 24, 1998
CASE CORPORATION RETIREMENT SAVINGS PLAN
----------------------------------------
FINANCIAL STATEMENTS AS OF DECEMBER 31, 1997 AND 1996
-----------------------------------------------------
TOGETHER WITH REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
------------------------------------------------------
CASE CORPORATION RETIREMENT SAVINGS PLAN
----------------------------------------
FINANCIAL STATEMENTS
--------------------
DECEMBER 31, 1997 AND 1996
--------------------------
TABLE OF CONTENTS
-----------------
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
FINANCIAL STATEMENTS
Statements of Net Assets Available for Benefits With Fund Information -
December 31, 1997 and 1996
Statement of Changes in Net Assets Available for Benefits With Fund
Information For the Year Ended December 31, 1997
NOTES TO FINANCIAL STATEMENTS
SUPPLEMENTAL SCHEDULES
Schedule I - Item 27(a) - Schedule of Assets Held for Investment Purposes
Schedule II - Item 27(d) - Schedule of Reportable Transactions
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Administrator of the
Case Corporation Retirement Savings Plan
We have audited the accompanying statements of net assets available for plan
benefits of THE CASE CORPORATION RETIREMENT SAVINGS PLAN as of December 31, 1997
and 1996 and the related statement of changes in net assets available for plan
benefits, with fund information, for the year ended December 31, 1997. These
financial statements and the supplemental schedules, as listed in the
accompanying table of contents, are the responsibility of the Plan's management.
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 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, with fund
information, of the Plan as of December 31, 1997 and 1996 and the changes in its
net assets available for plan benefits, with fund information, for the year
ended December 31, 1997 in conformity with generally accepted accounting
principles.
Our audits were performed for the purpose of forming an opinion on the Plan's
basic financial statements taken as a whole. The supplemental schedules, as
listed in the accompanying table of contents, are presented for 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
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 plan benefits and the statement of changes in net assets
available for plan 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
Milwaukee, Wisconsin,
June 24, 1998.
CASE CORPORATION
----------------
RETIREMENT SAVINGS PLAN
-----------------------
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
--------------------------------------------------------------------
AS OF DECEMBER 31, 1997
-----------------------
Participant Directed
-------------------------------------------------------------------
Northern Trust BZW BZW
Collective Barclays Capital Barclays
Short-Term U.S. Debt Guardian U.S. U.S. Equity
Investment Fund Index Fund Balanced Fund Index Fund
------------------ ------------ --------------- -------------
ASSETS
------
Investments, at Fair Market Value $ 118,852,267 $ 7,430,021 $ 36,047,617 $ 53,618,453
Loans to Participants - - - -
Employer's Contribution Receivable 8,596,424 121,393 426,649 698,421
Investment Income Receivable 241,358 - - -
----------------- ------------ --------------- -------------
Total Assets 127,690,049 7,551,414 36,474,266 54,316,874
LIABILITIES
-----------
Accounts Payable 27,797 1,917 8,047 11,988
----------------- ------------ --------------- -------------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 127,662,252 $ 7,549,497 $ 36,466,219 $ 54,304,886
================= ============ =============== =============
The accompanying notes are an integral part of this statement.
CASE CORPORATION
----------------
RETIREMENT SAVINGS PLAN
-----------------------
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
--------------------------------------------------------------------
AS OF DECEMBER 31, 1997
-----------------------
(Continued)
Participant Directed
-------------------------------------------------------------------
Neuberger & Capital Guardian Metropolitan
Berman Putnam OTC U.S. Small Life Group
Manhattan Emerging Capitalization Annuity
Trust Growth Fund Fund Contracts
-------------- ------------- ------------------ --------------
ASSETS
------
Investments, at Fair Market Value $ 21,165,740 $ 57,290,014 $ 23,974,032 $ 15,521,492
Loans to Participants - - - -
Employer's Contribution Receivable 272,600 941,022 350,461 143
Investment Income Receivable - - - -
------------- ------------- ------------------ --------------
Total Assets 21,438,340 58,231,036 24,324,493 15,521,635
LIABILITIES
-----------
Accounts Payable 600 1,235 5,390 525
------------- ------------- ------------------ --------------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 21,437,740 $ 58,229,801 $ 24,319,103 $ 15,521,110
============= ============= ================== ==============
The accompanying notes are an integral part of this statement.
CASE CORPORATION
----------------
RETIREMENT SAVINGS PLAN
-----------------------
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
--------------------------------------------------------------------
AS OF DECEMBER 31, 1997
-----------------------
(Continued)
Non-Participant
Participant Directed Directed
--------------------------- ------------------------------------------
Templeton Participant
Foreign Case Stock Tenneco Loans &
Fund Fund Stock Fund Other Total
------------ ------------ ---------- ------------ -------------
ASSETS
------
Investments, at Fair Market Value $ 11,270,429 $ 59,904,535 $ - $ 621,409 $ 405,696,009
Loans to Participants - - - 7,031,526 7,031,526
Employer's Contribution Receivable 182,140 72,970 - - 11,662,223
Investment Income Receivable - 51,191 - 5,760 298,309
------------ ------------ ---------- ------------- -------------
Total Assets 11,452,569 60,028,696 - 7,658,695 424,688,067
LIABILITIES
-----------
Accounts Payable 2,832 15,097 - 765,764 841,192
------------ ------------ ---------- ------------- -------------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 11,449,737 $ 60,013,599 $ - $ 6,892,931 $ 423,846,875
============ ============ ========== ============= =============
The accompanying notes are an integral part of this statement.
CASE CORPORATION
----------------
RETIREMENT SAVINGS PLAN
-----------------------
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
--------------------------------------------------------------------
AS OF DECEMBER 31, 1996
-----------------------
Participant Directed
------------------------------------------------------------------
Northern Trust BZW BZW
Collective Barclays Capital Barclays
Short-Term U.S. Debt Guardian U.S. U.S. Equity
Investment Fund Index Fund Balanced Fund Index Fund
----------------- ------------ --------------- -------------
ASSETS
------
Investments, at Fair Market Value $ 106,060,966 $ 6,292,887 $ 24,621,961 $ 32,385,954
Loans to Participants - - - -
Employer's Contribution Receivable 8,566,278 130,977 461,727 681,763
Investment Income Receivable 221,833 - - -
----------------- ------------ --------------- -------------
Total Assets 114,849,077 6,423,864 25,083,688 33,067,717
LIABILITIES
-----------
Accounts Payable 24,066 1,667 5,919 7,717
----------------- ------------ --------------- -------------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 114,825,011 $ 6,422,197 $ 25,077,769 $ 33,060,000
================= ============ =============== =============
The accompanying notes are an integral part of this statement.
CASE CORPORATION
----------------
RETIREMENT SAVINGS PLAN
-----------------------
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
--------------------------------------------------------------------
AS OF DECEMBER 31, 1996
-----------------------
(Continued)
Participant Directed
-------------------------------------------------------------------
Neuberger & Capital Guardian Metropolitan
Berman Putnam OTC U.S. Small Life Group
Manhattan Emerging Capitalization Annuity
Trust Growth Fund Fund Contracts
------------- ------------- ------------------ --------------
ASSETS
------
Investments, at Fair Market Value $ 11,641,411 $ 64,109,586 $ 12,635,431 $ 14,335,927
Loans to Participants - - - -
Employer's Contribution Receivable 279,423 1,338,316 295,216 72,518
Investment Income Receivable 844,156 - - -
------------- ------------- ------------------ --------------
Total Assets 12,764,990 65,447,902 12,930,647 14,408,445
LIABILITIES
-----------
Accounts Payable 500 1,572 2,999 536
------------- ------------- ------------------ --------------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 12,764,490 $ 65,446,330 $ 12,927,648 $ 14,407,909
============= ============= ================== ==============
The accompanying notes are an integral part of this statement.
CASE CORPORATION
----------------
RETIREMENT SAVINGS PLAN
-----------------------
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
--------------------------------------------------------------------
AS OF DECEMBER 31, 1996
-----------------------
(Continued)
Participant Directed Non-Participant Directed
--------------------------- ----------------------------
Templeton Participant
Foreign Case Stock Tenneco Loans &
Fund Fund Stock Fund Other
----------- ------------- ------------ -------------
ASSETS
------
Investments, at Fair Market Value $ 6,704,233 $ $42,109,761 $ 36,414,222 $ 332,745
Loans to Participants - - - 6,072,453
Employer's Contribution Receivable 167,769 63,043 - -
Investment Income Receivable - 39,717 5,938 2,684
----------- ------------- ------------ -------------
Total Assets 6,872,002 42,212,521 36,420,160 6,407,882
LIABILITIES
-----------
Accounts Payable 1,650 10,669 6,031 324,008
----------- ------------- ------------ -------------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 6,870,352 $ 42,201,852 $ 36,414,129 $ 6,083,874
=========== ============= ============ =============
The accompanying notes are an integral part of this statement.
CASE CORPORATION
----------------
RETIREMENT SAVINGS PLAN
-----------------------
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
--------------------------------------------------------------------
AS OF DECEMBER 31, 1996
-----------------------
(Continued)
Total
--------------
ASSETS
------
Investments, at Fair Market Value $ 357,645,084
Loans to Participants 6,072,453
Employer's Contribution Receivable 12,057,030
Investment Income Receivable 1,114,328
--------------
Total Assets 376,888,895
LIABILITIES
-----------
Accounts Payable 387,334
--------------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 376,501,561
==============
The accompanying notes are an integral part of this statement.
CASE CORPORATION
----------------
RETIREMENT SAVINGS PLAN
-----------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
- -------------------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1997
------------------------------------
Participant Directed
--------------------------------------------------------------------
Northern Trust BZW BZW
Collective Barclays Capital Barclays
Short-Term U.S. Debt Guardian U.S. Equity Index
Investment Fund Index Fund Balanced Fund Fund
----------------- ------------ --------------- --------------
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Net Appreciation (Depreciation)
in the Fair Value of Investments $ 3,137,334 $ 585,392 $ 6,333,324 $ 12,487,340
Investment Income
Interest Income 2,867,150 - - -
Dividend Income - - - -
----------------- ------------ --------------- --------------
2,867,150 - - -
----------------- ------------ --------------- --------------
Contributions
Employer's Contributions 8,466,590 114,315 400,592 657,735
Participants' Contributions 3,911,035 443,671 1,777,038 2,934,797
----------------- ------------ --------------- --------------
12,377,625 557,986 2,177,630 3,592,532
----------------- ------------ --------------- --------------
Total Additions 18,382,109 1,143,378 8,510,954 16,079,872
----------------- ------------ --------------- --------------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Benefits Paid to Participants 19,038,017 647,736 1,687,272 3,454,410
Administrative Expenses 293,894 20,618 85,399 123,553
----------------- ------------ --------------- -------------
Total Deductions 19,331,911 668,354 1,772,671 3,577,963
----------------- ------------ --------------- -------------
Net Increase (Decrease) (949,802) 475,024 6,738,283 12,501,909
TRANSFERS BETWEEN FUNDS 13,787,043 652,276 4,650,167 8,742,977
TRANSFERS FROM OTHER PLANS - - - -
NET ASSETS AVAILABLE FOR
PLAN BENEFITS
Beginning of Year 114,825,011 6,422,197 25,077,769 33,060,000
----------------- ------------ --------------- --------------
End of Year $ 127,662,252 $ 7,549,497 $ 36,466,219 $ 54,304,886
================= ============ =============== ==============
The accompanying notes are an integral part of this statement.
CASE CORPORATION
----------------
RETIREMENT SAVINGS PLAN
-----------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
- -------------------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1997
------------------------------------
(Continued)
Participant Directed
---------------------------------------------------------------------
Neuberger & Capital Guardian Metropolitan
Berman Putnam OTC U.S. Small Life Group
Manhattan Emerging Capitalization Annuity
Trust Growth Fund Fund Contracts
------------- ------------- ------------------ --------------
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Net Appreciation (Depreciation)
in the Fair Value of Investments $ 4,051,782 $ 5,114,638 $ 3,667,904 $ -
Investment Income
Interest Income - - - 991,459
Dividend Income - - - -
------------- ------------- ------------------ --------------
- - - 991,459
------------- ------------- ------------------ --------------
Contributions
Employer's Contributions 254,555 889,570 337,377 (72,375)
Participants' Contributions 1,213,383 4,411,102 1,340,805 1,292,483
------------- ------------- ------------------ --------------
1,467,938 5,300,672 1,678,182 1,220,108
------------- ------------- ------------------ --------------
Total Additions 5,519,720 10,415,310 5,346,086 2,211,567
------------- ------------- ------------------ --------------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Benefits Paid to Participants 733,388 3,505,494 835,882 913,186
Administrative Expenses 6,683 15,662 52,300 6,391
------------- ------------- ------------------ --------------
Total Deductions 740,071 3,521,156 888,182 919,577
------------- ------------- ------------------ --------------
Net Increase (Decrease) 4,779,649 6,894,154 4,457,904 1,291,990
TRANSFERS BETWEEN FUNDS 3,893,601 (14,110,683) 6,933,551 (178,789)
TRANSFERS FROM OTHER PLANS - - - -
NET ASSETS AVAILABLE FOR
PLAN BENEFITS
Beginning of Year 12,764,490 65,446,330 12,927,648 14,407,909
------------- ------------- ------------------ --------------
End of Year $ 21,437,740 $ 58,229,801 $ 24,319,103 $ 15,521,110
============= ============= ================== ==============
The accompanying notes are an integral part of this statement.
CASE CORPORATION
----------------
RETIREMENT SAVINGS PLAN
-----------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
- -------------------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1997
------------------------------------
(Continued)
Participant Directed Non-Participant Directed
--------------------------- --------------------------------
Templeton Participant
Foreign Case Stock Tenneco Stock Loans &
Fund Fund Fund Other
------------ ------------ --------------- --------------
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Net Appreciation (Depreciation)
in the Fair Value of Investments $ 221,277 $ 4,760,309 $ (1,865,714) $ -
Investment Income
Interest Income - 22,470 113,543 656,713
Dividend Income 342,877 174,974 740,041 -
------------ ------------ --------------- -------------
342,877 197,444 853,584 656,713
------------ ------------ --------------- -------------
Contributions
Employer's Contributions 170,856 12,371,403 - -
Participants' Contributions 912,448 176,515 - 1,047,910
------------ ------------ --------------- -------------
1,083,304 12,547,918 - 1,047,910
------------ ------------ --------------- -------------
Total Additions 1,647,458 17,505,671 (1,012,130) 1,704,623
------------ ------------ --------------- -------------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Benefits Paid to Participants 933,985 2,455,976 4,626,979 895,566
Administrative Expenses 23,021 156,966 62,259 -
------------ ------------ --------------- -------------
Total Deductions 957,006 2,612,942 4,689,238 895,566
------------ ------------ --------------- -------------
Net Increase (Decrease) 690,452 14,892,729 (5,701,368) 809,057
TRANSFERS BETWEEN FUNDS 3,888,933 2,919,018 (30,712,761) (465,333)
TRANSFERS FROM OTHER PLANS - - - 465,333
NET ASSETS AVAILABLE FOR
PLAN BENEFITS
Beginning of Year 6,870,352 42,201,852 36,414,129 6,083,874
------------ ------------ --------------- -------------
End of Year $ 11,449,737 $ 60,013,599 $ - $ 6,892,931
============ ============ =============== =============
The accompanying notes are an integral part of this statement.
CASE CORPORATION
----------------
RETIREMENT SAVINGS PLAN
-----------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
- -------------------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 1997
------------------------------------
(Continued)
Total
------------
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Net Appreciation (Depreciation)
in the Fair Value of Investments $ 38,493,586
Investment Income
Interest Income 4,651,335
Dividend Income 1,257,892
------------
5,909,227
------------
Contributions
Employer's Contributions 23,590,618
Participants' Contributions 19,461,187
------------
43,051,805
------------
Total Additions 87,454,618
------------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
Benefits Paid to Participants 39,727,891
Administrative Expenses 846,746
------------
Total Deductions 40,574,637
------------
Net Increase (Decrease) 46,879,981
TRANSFERS BETWEEN FUNDS -
TRANSFERS FROM OTHER PLANS 465,333
NET ASSETS AVAILABLE FOR
PLAN BENEFITS
Beginning of Year 376,501,561
------------
End of Year $423,846,875
============
The accompanying notes are an integral part of this statement.
CASE CORPORATION RETIREMENT SAVINGS PLAN
----------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
DECEMBER 31, 1997 AND 1996
--------------------------
1. Description of the Plan
-----------------------
The following description of the Case Corporation (the "Company") Retirement
Savings Plan (the "Plan") provides only general information. Participants
should refer to the Plan Agreement for a more complete description of the
Plan's provisions.
a. General
-------
The Plan is a defined contribution plan covering all employees of the
Company who are neither leased employees nor represented by a collective
bargaining unit (unless the collective bargaining agreement stipulates
participation). Participants are eligible to make contributions to the
Plan upon date of hire, however, Company contributions do not begin until
after participants have completed one year of qualified service. The Plan
was established on July 1, 1994, and complies with Sections 401(a),
401(k) and 401(m) of the Internal Revenue Code. The Plan is subject to
the provisions of the Employee Retirement Income Security Act of 1974
(ERISA).
b. Contributions
-------------
The following is a brief description of the contributions applicable to
various segments of participants:
Participant Company
----------- -------
Salaried (excluding sales Ranges from 0% to 100% match of
representatives at a maximum of 8% participant contributions
Company-owned stores, of eligible
Concord, and Midwest compensation
Consulting Services)
Salaried (excluding 4% of participant's
Concord and Midwest eligible compensation
Consulting Services)
Salaried (excluding Discretionary profit
Concord and Midwest sharing ranging from
Consulting Services) 0 to 8% of eligible
compensation
Midwest Consulting Ranges from 0% to None
Services and Concord Plant a maximum of 15%
of eligible
compensation
Midwest Consulting 3% of participant's
Services and Concord Plant eligible compensation
Wichita Plant Ranges from 0% to 100% match of participant
a maximum of 8% contributions to a maximum
of eligible of 7% of eligible compensation
compensation
-1-
Participant Company
--------------------- --------------------
Steiger Plant Ranges from 0% to None
a maximum of 20% of
eligible compensation
United Auto Ranges from 0% to a Negotiated cents per
Workers maximum of 20% of hour factor times
(UAW) eligible compensation annual hours worked
The Company's matching contribution is made in the form of Case
Corporation stock. Under the Plan, the Company's fixed contributions are
made to the Northern Trust Collective Short-Term Investment Fund and may
be redirected by the participant to any of the other investment fund
options other than the Case Stock Fund. The Company's discretionary
profit sharing contribution is allocated to the same investment options
as the participant directed contributions. For 1997, the Company profit
sharing contribution was $4,432,380 or 2.5% of participant's base salary.
For 1996, the profit sharing contribution was $4,990,265, or 3.0% of
participant's base salary. The applicable cents per hour factor relevant
to United Automobile, Aerospace and Agricultural Implement Workers of
America (the "UAW") participants was $.36 for the two plan years ending
December 31, 1997. Tax deferred savings contributions are limited to
$9,500 for the years ended December 31, 1997 and 1996, subject to any
adjustment made in accordance with Section 402 of the Internal Revenue
Code.
c. Vesting
-------
Participants are immediately vested in their contributions plus actual
earnings thereon. Participants employed by the Company as of June 30,
1994, are 100% vested in the Company's matching, fixed and discretionary
contributions and the related earnings thereon. Salaried participants
hired subsequent to that date and Midwest Consulting Services, Concord
plant and Wichita plant participants are fully vested in the Company's
contributions after five or more years of service. A UAW participant's
interest in his account is fully vested and non-forfeitable at all times.
d. Investment Options
------------------
Participants may direct their tax deferred savings contributions and
Company discretionary contributions in any one or more of nine investment
options below. Participants may direct the Company fixed contribution in
any one or more of the investment options below except the Case Stock
Fund:
1. Northern Trust Collective Short-Term Investment Fund
This fund invests in a portfolio of high-grade money market
instruments with short maturities, as well as a guaranteed investment
contract with an insurance company.
2. BZW Barclays U.S. Debt Index Fund
This fund is composed primarily of U.S. government and corporate
bonds, and also includes asset-backed securities and high quality
mortgage pass-throughs.
-2-
3. Capital Guardian U.S. Balanced Fund
This fund invests in U.S. stocks and bonds.
4. BZW Barclays Equity Index Fund
This fund invests in a broad range of U.S. common stocks.
5. Neuberger & Berman Manhattan Trust
This fund is composed primarily of common stocks and securities
convertible into or exchangeable for common stock. Preferred stocks
and debt securities may also be held.
6. Putnam OTC Emerging Growth Fund
This fund invests in common stocks of small- to medium-sized emerging-
growth companies traded in the over-the-counter ("OTC") market. The
fund may invest up to 20% of its assets in international securities.
7. Capital Guardian U.S. Small Capitalization Fund
This fund is invested primarily in equity securities of companies with
capital between $50 and $750 million at time of purchase.
8. Templeton Foreign Fund
This fund is invested primarily in stocks and debt obligations of
companies and governments outside the United States. Beginning in
February, 1996, participants were able to elect this fund as an
investment option.
9. Case Stock Fund
This fund consists almost solely of Case Corporation common stock.
All Company matching contributions are invested in the Case Stock Fund.
Two additional investment funds exist, however, not all participants may
direct their contributions into these options. No new contributions may
be directed to the Tenneco Stock Fund, which consists of Tenneco Inc.
common stock and short-term investments which were transferred to this
Plan from a predecessor plan in 1994. Effective December 15, 1997, the
Tenneco Stock Fund was eliminated as an investment option. Any
participant account balances that had not been transferred from the
Tenneco Stock Fund prior to December 31, 1997, were transferred to the
Money Market Demand Account within the Northern Trust Collective Short-
Term Investment Fund. The Metropolitan Life Insurance Group Annuity
Contracts Fund, which consists of a guaranteed investment contract, is
available only to employees represented by a collective bargaining unit.
-3-
e. Loans to Participants
---------------------
Participants may borrow from their accounts a minimum of $1,000 up to a
maximum equal to the lesser of $50,000 or 50 percent of their vested
account balance. Loan terms range from one to five years, or up to 15
years for the purchase of a primary residence. The loans are secured by
the balance of the participant's account and bear interest at market
rates as determined by the Plan administrator. The interest rates on
loans outstanding at December 31, 1997 and 1996 ranged from 7% to 11%.
f. Payment of Benefits
-------------------
On termination of service, a participant may receive the value of the
vested interest in his or her account under a variety of payment options.
Participants may elect to have the portion of their accounts invested in
the Case Stock Fund distributed in either stock or cash.
g. Forfeitures
-----------
Forfeited nonvested accounts will be used to reduce future Company
contributions. During 1997 and 1996, the forfeited nonvested accounts
used for this purpose totaled $12,970 and $0, respectively. At December
31, 1997 and 1996, forfeited nonvested accounts totaled $268,285 and
$17,768, respectively.
2. Plan Name Change
----------------
Effective December 31, 1996, the Plan's name was changed from the Case
Corporation Retirement Savings Plan: Profit Sharing Plan to the Case
Corporation Retirement Savings Plan.
3. Transfer of Assets
------------------
Effective December 31, 1996, the Case Corporation Retirement Savings Plan:
Money Purchase Pension Plan was merged into the Plan. Asset transfers
related to this merger totaled $17,049,845.
Effective January 31, 1997, the Concord Savings and Retirement Plan was
merged into the Plan. Asset transfers related to this merger totaled
$465,333.
Rollover contributions and participant after-tax contributions or transfers
into the Plan are not permitted.
4. Summary of Significant Accounting Policies
------------------------------------------
Financial Statements
--------------------
The Plan's financial statements have been prepared on the accrual basis of
accounting.
Accounting Estimates
--------------------
The preparation of financial statements in conformity with generally accepted
accounting principles requires the Plan's administrator to make estimates and
assumptions that affect the accompanying financial statements. Actual
results could differ from these estimates.
5. Trustee
-------
The trustee of the Plan is The Northern Trust Company (the "Trustee").
Hewitt Associates maintains records of individual account balances for each
participant.
-4-
6. Investments
Investments are stated at fair market value as determined by the Trustee by
reference to published market data, except for the guaranteed investment
contracts that are benefit responsive as defined by SOP 94-4 ("Reporting of
Investment Contracts Held by Health and Welfare Benefit Plans and Defined
Contribution Pension Plans") and are stated at contract value as determined
by the Trustee. Under the terms of the investment contracts, the crediting
interest rate is determined semi-annually based on the insurance company's
applicable rate schedule. The crediting interest rates ranged from 6.65% to
6.75% as of December 31, 1997, and from 6.55% to 6.60% as of December 31,
1996. The fair value of the investment contracts as of December 31, 1997 and
1996 was $19,660,185 and $17,744,538, respectively.
The Trustee of the Plan holds the Plan's investments and executes
transactions therein.
The Plan's investments are valued daily, and units which reflect the daily
valuations are assigned to participants. At the Plan's inception, all
investment options were assigned a unit value of $10.00, with the exception
of the Northern Trust Collective Short-Term Investment Fund and the
Metropolitan Life Insurance Group Annuity Contracts, which were assigned a
unit value of $1.00. The number of units outstanding and the net asset value
per unit as of December 31, 1997, is as follows:
Net Asset
Fund No. of Units Value per Unit
---- ------------ --------------
Capital Guardian
U.S. Balanced Fund 1,995,992.06 $ 18.06
Capital Guardian U.S. Small
Capitalization Tax-Exempt Trust 1,312,207.59 18.27
Case Corporation
Common Stock 983,880 60.4375
Metropolitan Life Insurance
Group Annuity Contracts 19,174,375.62 1.00
Neuberger & Berman
Manhattan Trust Fund 1,556,304.37 13.60
Northern Trust Collective
Short-Term Investment Fund 38,589,588.38 1.471
Northern Trust Collective
Short-Term Investment Fund 59,496,795.66 1.00
- Money Market Demand Account
Putnam OTC Emerging
Growth Fund 3,556,177.15 16.11
-5-
BZW Barclays Daily U.S.
Debt Index Fund 572,420.67 12.98
BZW Barclays Daily U.S.
Equity Index Fund 2,051,988.28 26.13
Templeton Foreign Fund 1,132,706.43 9.95
Net realized/unrealized gains(losses) on the Plan's investments during 1997 are
included in "Net Investment Appreciation (Depreciation) in the Fair Value of
Investments".
The market value of the assets held in the Trust as of December 31, 1997, as
certified by the Trustee are:
Short-Term Investments $116,262,080
Mortgages, Notes and Contracts 26,604,396
Common Stock 262,829,533
------------
Total Assets $405,696,009
============
Income for the year ended December 31, 1997, is allocated to the investment
types as follows:
Short-Term Investments $ 6,004,484
Mortgages, Notes and Contracts 1,648,172
Common Stock 36,750,157
-----------
Total Income $44,402,813
===========
7. Income Tax Status
The plan has obtained a determination letter from the Internal Revenue
Service dated August 19, 1996, approving the Plan as qualified for tax-exempt
status. It is management's opinion that no event has occurred that would
disqualify the Plan's tax-exempt status.
8. Related Party Transactions
Administrative fees are borne by the Plan.
-6-
The Plan periodically invests in common funds managed by the Trustee.
The above transactions are not considered prohibited transactions by
statutory exemptions under the ERISA regulations.
9. Plan Termination
Although it has not expressed any intent to do so, the Company has the right
under the Plan to discontinue its contributions at any time and to terminate
the Plan subject to the provisions of ERISA. In the event of Plan
termination, participants will become 100% vested in their accounts.
-7-
SCHEDULE I
CASE CORPORATION RETIREMENT SAVINGS PLAN
----------------------------------------
DECEMBER 31, 1997
-----------------
Item 27(a) - Schedule of Assets Held for Investment Purposes
------------------------------------------------------------
Identity of Issuer Description Cost Current Value
------------------- ------------------ -------------- ---------------
* Case Corporation Case Corporation $ 7,031,525.74 $ 7,031,525.74
Retirement Savings Participant Loans
Plan (Interest rates
ranging from 7%
to 11%)
Capital Guardian Capital Guardian U.S. $25,398,340.35 $36,047,616.51
Investments Balanced Fund
Capital Guardian Capital Guardian U.S. $19,270,725.32 $23,974,032.67
Investments Small Capitalization
Tax Exempt Trust
* Case Corporation Case Corporation $40,619,752.49 $59,463,247.50
Common Stock
Metropolitan Life Metropolitan Life $19,174,375.62 $19,174,375.62
Insurance Insurance Group
Annuity Contracts
Neuberger & Berman Neuberger & Berman $20,437,009.60 $21,165,739.43
Management, Inc. Manhattan Trust Fund
* Northern Trust Northern Trust $59,496,795.66 $59,496,795.66
Corporation Collective Short-
Term Investment Fund
* Northern Trust Northern Trust $51,000,000.00 $56,765,284.51
Corporation Collective Short-
Term Investment Fund
Putnam Investments Putnam OTC $49,096,792.81 $57,290,013.89
Emerging Growth Fund
*Represents a party in interest.
SCHEDULE I (Continued)
CASE CORPORATION RETIREMENT SAVINGS PLAN
----------------------------------------
DECEMBER 31, 1997
-----------------
Item 27(a) - Schedule of Assets Held for Investment Purposes
------------------------------------------------------------
Identity of Issuer Description Cost Current Value
- ------------------- ---------------------- --------------- ---------------
Barclays Global Investors BZW Barclays Daily $ 6,492,916.10 $ 7,430,020.30
U.S. Debt Index Fund
Barclays Global Investors BZW Barclays Daily $ 36,924,031.12 $ 53,618,453.76
U.S. Equity Index Fund
Franklin Templeton Templeton $ 11,845,582.42 $ 11,270,429.00
Foreign Fund
--------------- ---------------
$346,787,847.23 $412,727,534.59
=============== ===============
SCHEDULE II
CASE CORPORATION RETIREMENT SAVINGS PLAN
----------------------------------------
DECEMBER 31, 1997
-----------------
Item 27(d) Schedule of Reportable Transactions
-----------------------------------------------
Identity Purchase Selling Cost of Current Net
Of Issuer Description Price Price Expenses Asset Value Gain (Loss)
- ------------ ----------------- --------- --------- ----------- ---------------- ---------------- --------------
Putnam Investments Putnam OTC $ 14.9179 N/A N/A $ 11,766,992.11 $ 11,766,992.11 N/A
Emerging
Growth Fund
(89 Purchases)
Putnam Investments Putnam OTC N/A $ 14.6514 N/A $ 21,946,237.50 $ 23,701,201.77 $ 1,754,964.27
Emerging
Growth Fund
(164 Sales)
Tenneco, Inc. Tenneco, Inc. N/A $ 40.7882 $ 33,559.02 $ 25,399,303.15 $ 26,702,815.92 $ 1,269,953.75
Common Stock
(23 Sales)
Barclays Global BZW Barclays $ 22.6363 N/A N/A $ 19,534,954.49 $ 19,534,954.49 N/A
Investors Daily U.S. Equity
Index Fund
(149 Purchases)
Barclays Global BZW Barclays N/A $ 23.3092 N/A $ 7,808,428.57 $ 10,814,899.37 $ 3,006,470.80
Investors Daily U.S. Equity
Index Fund
(96 Sales)
Northern Trust Northern Trust $ 1.00 N/A N/A $ 117,256,280.44 $ 117,256,280.44 N/A
Corporation Collective
Short-Term
Investment Fund
(322 Purchases)
Northern Trust Northern Trust N/A $ 1.00 N/A $ 109,476,517.51 $ 109,476,517.51 N/A
Corporation Collective
Short-Term
Investment Fund
(447 Sales)