1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(Mark One)
[X} ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 for the fiscal year ended March 31, 1999; or
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 for the transition period from _____________ to ______________
COMMISSION FILE NUMBER 001-13889
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
MacDermid, Incorporated Profit Sharing and Employee Stock Ownership
Plan
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
MacDermid, Incorporated
245 Freight Street
Waterbury, CT 06702-0671
REQUIRED INFORMATION
In accordance with the rules to Form 11-K, attached as Appendix 1 to this Form
11-K are the plan financial statements and schedules prepared in accordance with
the financial reporting requirements of ERISA and examined by an independent
accountant on a full scope basis.
EXHIBITS
23.1 Consent of KPMG LLP
2
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employee benefit plan) have duly
caused this annual report to be signed on its behalf by the undersigned
thereunto duly authorized.
MACDERMID, INCORPORATED PROFIT
SHARING AND EMPLOYEE STOCK
OWNERSHIP PLAN
By: MACDERMID, INCORPORATED
Date October 15, 1999 By: /s/ Marion L. Hubbard
------------------------ --------------------------------
Name: Marion L. Hubbard
Title: Plan Administrator
3
MACDERMID, INCORPORATED PROFIT SHARING
AND EMPLOYEE STOCK OWNERSHIP PLAN
(formerly known as the MacDermid, Incorporated
Employee Profit Sharing Plan)
Financial Statements and Supplemental Schedules
March 31, 1999, 1998 and 1997
(With Independent Auditors' Report Thereon)
4
MACDERMID, INCORPORATED PROFIT SHARING
AND EMPLOYEE STOCK OWNERSHIP PLAN
TABLE OF CONTENTS
PAGE
Independent Auditors' Report 1
Statement of Financial Condition with Fund Information as of March 31, 1999 3
Statement of Financial Condition with Fund Information as of March 31, 1998 5
Statement of Income and Changes in Plan Equity with Fund Information for the year ended
March 31, 1999 6
Statement of Income and Changes in Plan Equity with Fund Information for the year ended
March 31, 1998 8
Statement of Income and Changes in Plan Equity with Fund Information for the year ended
March 31, 1997 9
Notes to Financial Statements 11
SCHEDULES
1 Item 27a - Schedule of Assets Held for Investment Purposes 21
2 Item 27d - Schedule of Reportable Transactions 22
Note: Schedules of nonexempt transactions, loans or fixed income obligations,
leases in default or classified as uncollectible and assets held for
investment purposes which were both acquired and disposed of within the
plan year as required by Section 103(c)(5) of the Employee Retirement
Income Security Act of 1974 have not been included herein as the
information is not applicable.
5
INDEPENDENT AUDITORS' REPORT
Plan Administrator
MacDermid, Incorporated Profit
Sharing and Employee Stock Ownership Plan
Waterbury, Connecticut:
We have audited the accompanying statements of financial condition of MacDermid,
Incorporated Profit Sharing and Employee Stock Ownership Plan as of March 31,
1999 and 1998 and the related statements of income and changes in plan equity
for each of the years in the three-year period ended March 31, 1999. These
financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial condition of MacDermid, Incorporated Profit
Sharing and Employee Stock Ownership Plan as of March 31, 1999 and 1998 and its
income and changes in plan equity for each of the years in the three-year period
ended March 31, 1999 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 and reportable transactions 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
6
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. These supplemental schedules are the responsibility of the
Plan's management. The Fund Information in the statements of financial condition
and the statements of income and changes in plan equity is presented for
purposes of additional analysis rather than to present the financial condition
and income and changes in plan equity 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.
/s/ KPMG LLP
-------------------------------
August 20, 1999
Hartford, Connecticut
2
7
MACDERMID, INCORPORATED PROFIT SHARING
AND EMPLOYEE STOCK OWNERSHIP PLAN
Statement of Financial Condition with Fund Information
March 31, 1999
Participant Directed
------------------------------------------------------------------------------------------------------
Fidelity Fidelity Galaxy Fidelity Galaxy
Advisor Fleet Advisor Large Advisor Galaxy Small
Employer Equity Stable Fidelity Intermediate Company Growth Asset Company
Stock Income Asset Magellan Bond Index Opportunities Allocation Equity
Assets Fund Fund Fund Fund Fund Fund Fund Fund Fund
------------ -------- ------ -------- ------------ ------- ------------- ---------- -------
Investments, at current
value (notes 4 and 5):
MacDermid common stock $130,815,052 -- -- -- -- -- -- -- --
Other investments -- -- -- -- -- -- -- -- --
------------ ---- ---- ---- ---- ---- ---- ---- ----
Total investments 130,815,052 -- -- -- -- -- -- -- --
Cash (overdraft) -- -- -- -- -- -- -- -- --
Employer contribution
receivable -- -- -- -- -- -- -- -- --
Dividend and interest
receivable -- -- -- -- -- -- -- -- --
Other receivable -- -- -- -- -- -- -- -- --
------------ ---- ---- ---- ---- ---- ---- ---- ----
Total assets $130,815,052 -- -- -- -- -- -- -- --
============ ==== ==== ==== ==== ==== ==== ==== ====
Liabilities and
Plan Equity
Other payable $ -- -- -- -- -- -- -- -- --
Payable for securities
purchased -- -- -- -- -- -- -- -- --
Plan equity 130,815,052 -- -- -- -- -- -- -- --
------------ ---- ---- ---- ---- ---- ---- ---- ----
Total liabilities and
plan equity $130,815,052 -- -- -- -- -- -- -- --
============ ==== ==== ==== ==== ==== ==== ==== ====
Non-participant directed
--------------------------------
Loan Hercules
Assets Fund Stock Fund Other
--------- ---------- --------
Investments, at current
value (notes 4 and 5):
MacDermid common stock -- -- --
Other investments 2,056,900 364,233 --
--------- ------- -------
Total investments 2,056,900 364,233 --
Cash (overdraft) -- -- --
Employer contribution
receivable -- -- 436,345
Dividend and interest
receivable -- -- --
Other receivable -- -- --
--------- ------- -------
Total assets 2,056,900 364,233 436,345
========= ======= =======
Liabilities and
Plan Equity
Other payable -- -- --
Payable for securities
purchased -- -- --
Plan equity 2,056,900 436,345 364,233
--------- ------- -------
Total liabilities and
plan equity 2,056,900 436,345 364,233
========= ======= =======
See accompanying notes to financial statements.
3
8
MACDERMID, INCORPORATED PROFIT SHARING
AND EMPLOYEE STOCK OWNERSHIP PLAN
Statement of Financial Condition with Fund Information
March 31, 1999
Participant Directed
-----------------------------------------------------------------------------------------------
Norwest Prudential Prudential Prudential PIMCO Prudential
Oppenheimer Stable Prudential Equity Intermediate Stock Low Europe
Quest Value Equity Income Global Inc. Index Duration Growth
Assets Value A Fund 65 Fund A A A Z A A
---------- ---------- ---------- ---------- ------------ ---------- -------- ----------
Investments, at current value
(notes 4 and 5):
MacDermid common stock $ -- -- -- -- -- -- -- --
Other investments 7,988 10,121,617 4,728,400 224,001 5,801 2,240,380 220,003 20,188
------ ---------- --------- ------- ----- --------- ------- ------
Total investments 7,988 10,121,617 4,728,400 224,001 5,801 2,240,380 220,003 20,188
Cash (overdraft) -- -- -- -- -- -- -- --
Employer contribution receivable -- -- -- -- -- -- -- --
Dividend and interest receivable -- -- -- -- -- -- -- --
Other receivable -- -- -- -- -- -- -- --
------ ---------- --------- ------- ----- --------- ------- ------
Total assets $7,988 10,121,617 4,728,400 224,001 5,801 2,240,380 220,003 20,188
====== ========== ========= ======= ===== ========= ======= ======
LIABILITIES AND PLAN EQUITY
Other payable -- -- -- -- -- -- -- --
Payable for securities purchased -- -- -- -- -- -- -- --
Plan equity 7,988 10,121,617 4,728,400 224,001 5,801 2,240,380 220,003 20,188
------ ---------- --------- ------- ----- --------- ------- ------
Total liabilities and
plan equity $7,988 10,121,617 4,728,400 224,001 5,801 2,240,380 220,003 20,188
====== ========== ========= ======= ===== ========= ======= ======
Participant Directed
------------------------
Kemper-
Prudential Dreman Van Kampen Goldman Sachs AIM
World High Return American Government Income Balanced
Assets Fund Equity A Value Fund A Fund Fund A Total
---------- ----------- ------------ ----------------- -------- -----------
Investments, at current value
(notes 4 and 5):
MacDermid common stock -- -- -- -- -- 130,815,052
Other investments 4,918 5,687,355 452,927 3,470,650 753,077 30,358,438
----- --------- ------- --------- ------- -----------
Total investments 4,918 5,687,355 452,927 3,470,650 753,077 161,173,490
Cash (overdraft) -- -- -- -- -- --
Employer contribution receivable -- -- -- -- -- 436,345
Dividend and interest receivable -- -- -- -- -- --
Other receivable -- -- -- -- -- --
----- --------- ------- --------- ------- -----------
Total assets 4,918 5,687,355 452,927 3,470,650 753,077 161,609,835
===== ========= ======= ========= ======= ===========
LIABILITIES AND PLAN EQUITY
Other payable -- -- -- -- -- --
Payable for securities purchased -- -- -- -- -- --
Plan equity 4,918 5,687,355 452,927 3,470,650 753,077 161,609,835
----- --------- ------- --------- ------- -----------
Total liabilities and
plan equity 4,918 5,687,355 452,927 3,470,650 753,077 161,609,835
===== ========= ======= ========= ======= ===========
See accompanying notes to financial statements.
4
9
MACDERMID, INCORPORATED PROFIT SHARING
AND EMPLOYEE STOCK OWNERSHIP PLAN
Statement of Financial Condition with Fund Information
March 31, 1998
Participant Directed
-------------------------------------------------------------------------------------------
Fidelity Fidelity Galaxy Fidelity
Advisor Fleet Advisor Large Advisor
Employer Equity Stable Fidelity Intermediate Company Growth
Stock Income Asset Magellan Bond Index Opportunities
Assets Fund Fund Fund Fund Fund Fund Fund
------------ --------- --------- --------- ------------ -------- -------------
Investments, at current value
(notes 4 and 5):
MacDermid common stock $133,166,493 -- -- -- -- -- --
Other investments 881,606 3,631,227 4,713,393 4,194,698 443,289 461,776 1,081,923
------------ --------- --------- --------- -------- -------- ----------
Total investments 134,048,099 3,631,227 4,713,393 4,194,698 443,289 461,776 1,081,923
Cash (overdraft) -- 2,782 (22,877) 2,819 (19) (491) (622)
Employer contribution receivable -- -- -- -- -- -- --
Dividend and interest receivable 98,093 -- 25,245 -- 1,947 -- --
Other receivable 599,974 -- 21,735 -- 61 745 784
------------ --------- --------- --------- -------- -------- ----------
Total assets $134,746,166 3,634,009 4,737,496 4,197,517 445,278 462,030 1,082,085
============ ========= ========= ========= ======== ======== ==========
Liabilities and Plan Equity
Other payable $ 209,593 2,786 1,533 2,822 50 254 166
Payable for securities purchased -- -- -- -- -- -- --
Plan equity 134,536,573 3,631,223 4,735,963 4,194,695 445,228 461,776 1,081,919
------------ --------- --------- --------- -------- -------- ----------
Total liabilities and
plan equity $134,746,166 3,634,009 4,737,496 4,197,517 445,278 462,030 1,082,085
============ ========= ========= ========= ======== ======== ==========
Participant Directed
----------------------
Galaxy
Galaxy Small Non-participant directed
Asset Company ---------------------------------
Allocation Equity Loan
Assets Fund Fund Fund Other Total
---------- --------- --------- ------- -----------
Investments, at current value
(notes 4 and 5):
MacDermid common stock -- -- -- -- 133,166,493
Other investments 253,027 1,237,675 1,851,571 -- 18,750,185
------- --------- --------- ------- -----------
Total investments 253,027 1,237,675 1,851,571 -- 151,916,678
Cash (overdraft) 14 (23) 281 -- (18,136)
Employer contribution receivable -- -- -- 347,558 347,558
Dividend and interest receivable -- -- -- -- 125,285
Other receivable -- 81 -- -- 623,380
------- --------- --------- ------- -----------
Total assets 253,041 1,237,733 1,851,852 347,558 152,994,765
======= ========= ========= ======= ===========
Liabilities and Plan Equity
Other payable 15 58 25,660 -- 242,937
Payable for securities purchased -- -- -- -- --
Plan equity 253,026 1,237,675 1,826,192 347,558 152,751,828
------- --------- --------- ------- -----------
Total liabilities and
plan equity 253,041 1,237,733 1,851,852 347,558 152,994,765
======= ========= ========= ======= ===========
See accompanying notes to financial statements.
5
10
MACDERMID, INCORPORATED PROFIT SHARING
AND EMPLOYEE STOCK OWNERSHIP PLAN
Statement of Income and Changes in Plan Equity with Fund Information
Year ended March 31, 1999
Fidelity Galaxy
Advisor Fleet Fidelity Fidelity Large
Employer Equity Stable Magellan Advisor Company
Stock Income Asset Intermediate Bond Index
Fund Fund Fund Fund Fund Fund
------------- ---------- ---------- ------------ -------- --------
Investment income:
Dividends:
MacDermid common stock $ 230,500 -- -- -- -- --
Other securities -- 168,537 -- 213,168 -- 23,113
------------- ---------- ---------- ---------- -------- --------
230,500 168,537 -- 213,168 -- 23,113
Interest 41,399 -- 195,852 -- 45,174 --
Interest on participants loans 138,347 4,647 3,252 12,136 1,173 1,678
Other income -- -- -- -- -- --
------------- ---------- ---------- ---------- -------- --------
Total interest and dividends 410,246 173,184 199,104 225,304 46,347 24,791
------------- ---------- ---------- ---------- -------- --------
Realized gain (loss) from sales
of investments (note 7):
MacDermid common stock 38,190,087 -- -- -- -- --
Other securities -- 609,080 -- 1,514,057 11,418 151,040
------------- ---------- ---------- ---------- -------- --------
38,190,087 609,080 -- 1,514,057 11,418 151,040
Unrealized appreciation
(depreciation) of
investments (note 6) (13,366,944) (701,313) -- (1,178,030) (3,287) (81,550)
------------- ---------- ---------- ---------- -------- --------
Total investment income 25,233,389 80,951 199,104 561,331 54,478 94,281
Contributions:
Rollover 384,638 30,135 22,117 32,570 22,117 6,167
Employer 650,070 -- -- -- -- --
Employee 982,528 3,459 100 2,524 609 331
KSOP 401,748 -- -- -- -- --
401k 341,228 66,304 35,851 118,684 19,171 44,717
------------- ---------- ---------- ---------- -------- --------
Total additions 27,993,601 180,849 257,172 715,109 96,375 145,496
------------- ---------- ---------- ---------- -------- --------
Net loans (189,727) 2,110 3,158 (26,559) 3,577 4,064
Distribution to participants (27,698,863) (333,982) (6,412,690) (549,600) (385,620) (472,849)
Administrative expenses/credits (9,975) (456) (12,415) (1,593) (104) 150
Forfeitures (235,776) 5,228 8,162 8,479 1,494 2,885
------------- ---------- ---------- ---------- -------- --------
Total deductions (28,134,341) (327,100) (6,413,785) (569,273) (380,653) (465,750)
------------- ---------- ---------- ---------- -------- --------
Net increase (decrease) prior
to interfund transfers (140,740) (146,251) (6,156,613) 145,836 (284,278) (320,254)
Transfer from MacDermid Imaging
Technology Inc. 401K and Profit
Sharing Plan (note 1) 8,045,867 -- -- -- -- --
Net interfund transfers (11,626,648) (3,484,972) 1,420,650 (4,340,531) (160,950) (141,522)
------------- ---------- ---------- ---------- -------- --------
Net increase (decrease)
in plan equity (3,721,521) (3,631,223) (4,735,963) (4,194,695) (445,228) (461,776)
Plan equity at beginning of period 134,536,573 3,631,223 4,735,963 4,194,695 445,228 461,776
------------- ---------- ---------- ---------- -------- --------
Plan equity at end of period $ 130,815,052 -- -- -- -- --
============= ========== ========== ========== ======== ========
Fidelity Galaxy
Advisor Galaxy Small
Growth Asset Company
Opportunities Allocation Equity Loan
Fund Fund Fund Fund Other
------------- ---------- ---------- --------- --------
Investment income:
Dividends:
MacDermid common stock -- -- -- -- --
Other securities 69,542 13,557 -- -- --
---------- -------- ---------- --------- --------
69,542 13,557 -- -- --
Interest -- -- -- -- --
Interest on participants loans 2,548 2,794 5,012 -- --
Other income -- -- -- -- --
---------- -------- ---------- --------- --------
Total interest and dividends 72,090 16,351 5,012 -- --
---------- -------- ---------- --------- --------
Realized gain (loss) from sales
of investments (note 7):
MacDermid common stock -- -- -- -- --
Other securities 190,276 33,998 (215,662) -- --
---------- -------- ---------- --------- --------
190,276 33,998 (215,662) -- --
Unrealized appreciation
(depreciation) of
investments (note 6) (136,948) (18,138) 28,211 -- --
---------- -------- ---------- --------- --------
Total investment income 125,418 32,211 (182,439) -- --
Contributions:
Rollover 25,729 6,167 12,334 -- --
Employer -- -- -- -- 436,345
Employee 1,674 856 1,249 -- --
KSOP -- -- -- -- --
401k 88,109 22,706 69,254 -- --
---------- -------- ---------- --------- --------
Total additions 240,930 61,940 (99,602) -- 436,345
---------- -------- ---------- --------- --------
Net loans 6,888 10,916 15,795 147,291 --
Distribution to participants (102,243) (53,126) (526,506) (141,015) --
Administrative expenses/credits 95 (84) 60 -- --
Forfeitures 4,894 2,030 5,473 -- --
---------- -------- ---------- --------- --------
Total deductions (90,366) (40,264) (505,178) 6,276 --
---------- -------- ---------- --------- --------
Net increase (decrease) prior
to interfund transfers 150,564 21,675 (604,780) 6,276 436,345
Transfer from MacDermid Imaging
Technology Inc. 401K and Profit
Sharing Plan (Note 1) -- -- -- 224,432 --
Net interfund transfers (1,232,483) (274,701) (632,895) -- (347,558)
---------- -------- ---------- --------- --------
Net increase (decrease)
in plan equity (1,081,919) (253,026) (1,237,675) 230,708 88,787
Plan equity at beginning of period 1,081,919 253,026 1,237,675 1,826,192 347,558
---------- -------- ---------- --------- --------
Plan equity at end of period -- -- -- 2,056,900 436,345
========== ======== ========== ========= ========
See accompanying notes to financial statements.
6
11
MACDERMID, INCORPORATED PROFIT SHARING
AND EMPLOYEE STOCK OWNERSHIP PLAN
Statement of Income and Changes in Plan Equity with Fund Information
Year ended March 31, 1999
Oppenheimer Norwest Prudential Prudential Prudential PIMCO
Hercules Quest Stable Prudential Equity Intermediate Stock Low
Stock Value Value Equity Income Global Income Index Duration
Fund A Fund 65 Fund A A A Z A
-------- ------ -------- --------- ------- ------------- --------- ----------
Investment income:
Dividends:
MacDermid common stock $ -- -- -- -- -- -- -- --
Other securities 18 -- 4,015 -- 917 37 -- 7,433
-------- ----- ---------- --------- ------- ------ --------- --------
18 -- 4,015 -- 917 37 -- 7,433
Interest -- -- -- -- -- -- -- --
Interest on participants loans -- 220 8,019 1,555 316 195 1,206 39
Other income -- -- -- -- -- -- -- --
-------- ----- ---------- --------- ------- ------ --------- --------
Total interest and dividends 18 220 12,034 1,555 1,233 232 1,206 7,472
-------- ----- ---------- --------- ------- ------ --------- --------
Realized gain (loss) from sales of
investments (note 7):
MacDermid common stock -- -- -- -- -- -- -- --
Other securities (544) 4 5,940 (9,548) 2 (5) 6,427 (3,081)
-------- ----- ---------- --------- ------- ------ --------- --------
(544) 4 5,940 (9,548) 2 (5) 6,427 (3,081)
Unrealized appreciation
(depreciation)
of investments (note 6) (32,861) 115 203,441 18,881 444 (110) 91,435 (138)
-------- ----- ---------- --------- ------- ------ --------- --------
Total investment income (33,387) 339 221,415 10,888 1,679 117 99,068 4,253
Contributions:
Rollover -- -- -- -- -- -- -- --
Employer -- -- -- -- -- -- -- --
Employee -- 407 1,093 819 872 41 2,448 118
KSOP -- -- -- -- -- -- -- --
401k -- 6,776 15,504 11,401 5,378 5,281 37,525 1,377
-------- ----- ---------- --------- ------- ------ --------- --------
Total additions (33,387) 7,522 238,012 23,108 7,929 5,439 139,041 5,748
-------- ----- ---------- --------- ------- ------ --------- --------
Net loans (6,365) 680 5,855 3,223 946 495 3,167 353
Distribution to participants (9,579) (121) (104,927) (20,036) -- (116) (34,514) (2,002)
Administrative expenses/credits -- -- (923) (35) (31) (17) 165 --
Forfeitures -- -- (837) (1,464) -- -- (2,016) --
-------- ----- ---------- --------- ------- ------ --------- --------
Total deductions (15,944) 559 (100,832) (18,312) 915 362 (33,198) (1,649)
-------- ----- ---------- --------- ------- ------ --------- --------
Net increase (decrease) prior
to interfund transfers (49,331) 8,081 137,180 4,796 8,844 5,801 105,843 4,099
Transfer from MacDermid Imaging
Technology Inc. 401K and Profit
Sharing Plan (note 1) 413,564 -- 2,963,944 965,479 -- -- 1,173,024 661,879
Net interfund transfers -- (93) 7,020,493 3,758,125 215,157 -- 961,513 (445,975)
-------- ----- ---------- --------- ------- ------ --------- --------
Net increase (decrease)
in plan equity 364,233 7,988 10,121,617 4,728,400 224,001 5,801 2,240,380 220,003
Plan equity at beginning of period -- -- -- -- -- -- -- --
-------- ----- ---------- --------- ------- ------ --------- --------
Plan equity at end of period $364,233 7,988 10,121,617 4,728,400 224,001 5,801 2,240,380 220,003
======== ===== ========== ========= ======= ====== ========= ========
Kemper- Van Goldman
Prudential Dreman Kampen Sachs AIM
Europe Prudential High Return American Government Balanced
Growth World Equity Value Income Fund
A Fund A Fund A Fund A Total
------ ----- --------- ------- ---------- ------- -----------
Investment income:
Dividends:
MacDermid common stock -- -- -- -- -- -- 230,500
Other securities -- -- 30,975 -- 30,056 4,128 565,496
------ ----- --------- ------- --------- ------- -----------
-- -- 30,975 -- 30,056 4,128 718,417
Interest -- -- -- -- -- -- 282,425
Interest on participants loans 516 264 4,032 237 419 691 189,296
Other income -- -- -- -- -- -- --
------ ----- --------- ------- --------- ------- -----------
Total interest and dividends 516 264 35,007 237 30,475 4,819 1,267,717
------ ----- --------- ------- --------- ------- -----------
Realized gain (loss) from sales of
investments (note 7):
MacDermid common stock -- -- -- -- -- -- 38,190,087
Other securities (5) -- (27,274) (6,259) (1,414) 1,062 2,259,512
------ ----- --------- ------- --------- ------- -----------
(5) -- (27,274) (6,259) (1,414) 1,062 40,484,294
Unrealized appreciation
(depreciation)
of investments (note 6) (148) 24 (142,959) (6,717) 1,401 18,932 (15,305,849)
------ ----- --------- ------- --------- ------- -----------
Total investment income 363 288 (135,226) (12,739) 30,462 24,813 26,198,724
Contributions:
Rollover -- -- -- -- -- -- 541,974
Employer -- -- -- -- -- -- 1,086,415
Employee 1,099 94 3,015 836 1,068 520 1,005,760
KSOP -- -- -- -- -- -- 401,748
401k 12,352 3,880 51,490 5,902 3,726 11,939 978,555
------ ----- --------- ------- --------- ------- -----------
Total additions 13,814 4,262 (80,721) (6,001) 35,256 37,272 30,425,509
------ ----- --------- ------- --------- ------- -----------
Net loans 1,472 667 8,917 834 747 1,496 --
Distribution to participants (148) (11) (34,927) (5,191) -- (514) (36,888,580)
Administrative expenses/credits -- -- 100 (5) (63) (70) (25,201)
Forfeitures -- -- (6,588) (932) (237) (578) (209,783)
------ ----- --------- ------- --------- ------- -----------
Total deductions 1,324 656 (32,498) (5,294) 447 334 (37,123,564)
------ ----- --------- ------- --------- ------- -----------
Net increase (decrease) prior
to interfund transfers 15,138 4,918 (113,219) (11,295) 35,703 37,606 (6,698,055)
Transfer from MacDermid Imaging
Technology Inc. 401K and Profit
Sharing Plan (note 1) -- -- 705,140 -- -- 402,734 15,556,063
Net interfund transfers 5,050 -- 5,095,434 464,222 3,434,947 312,737 --
------ ----- --------- ------- --------- ------- -----------
Net increase (decrease)
in plan equity 20,188 4,918 5,687,355 452,927 3,470,650 753,077 8,858,007
Plan equity at beginning of period -- -- -- -- -- -- 152,751,828
------ ----- --------- ------- --------- ------- -----------
Plan equity at end of period 20,188 4,918 5,687,355 452,927 3,470,650 753,077 161,609,835
====== ===== ========= ======= ========= ======= ===========
See accompanying notes to financial statements.
7
12
MACDERMID, INCORPORATED PROFIT SHARING
AND EMPLOYEE STOCK OWNERSHIP PLAN
Statement of Income and Changes in Plan Equity with Fund Information
Year ended March 31, 1998
Fidelity Fidelity Galaxy
Advisor Advisor Large
Employer Equity Stable Fidelity Intermediate Company
Stock Income Asset Magellan Bond Index
Fund Fund Fund Fund Fund Fund
------------ --------- ---------- --------- ------------ -------
Investment income:
Dividends:
MacDermid common stock $ 342,798 -- -- -- -- --
Other securities -- 246,984 -- 250,231 -- 25,028
------------ --------- ---------- --------- ------- -------
342,798 246,984 -- 250,231 -- 25,028
Interest 45,466 -- 208,851 -- 22,038 --
Interest on participants loans 111,688 7,348 5,513 17,648 2,495 1,933
Other income 269,892 -- 27,293 -- 2,398 --
------------ --------- ---------- --------- ------- -------
Total interest and dividends 769,844 254,332 241,657 267,879 26,931 26,961
------------ --------- ---------- --------- ------- -------
Realized gain (loss) from sales of
investments (note 7):
MacDermid common stock 16,502,202 -- -- -- -- --
Other securities -- 323,387 -- 215,045 5,162 11,259
------------ --------- ---------- --------- ------- -------
16,502,202 323,387 -- 215,045 5,162 11,259
Unrealized appreciation
depreciation) of
investments (note 6) 70,875,442 551,838 -- 861,955 8,050 79,197
------------ --------- ---------- --------- ------- -------
Total investment income 88,147,488 1,129,557 241,657 1,344,879 40,143 117,417
Contributions:
Rollover 5,758 1,761 5,141 -- -- 15,004
Employer 498,102 -- -- -- -- --
Employee 1,044,871 4,185 750 2,010 738 167
401k 254,200 83,984 56,135 129,271 25,889 51,391
------------ --------- ---------- --------- ------- -------
Total additions 89,950,419 1,219,487 303,683 1,476,160 66,770 183,979
------------ --------- ---------- --------- ------- -------
Net loans (481,166) (22,945) 6,813 (44,083) 5,896 (2,030)
Distribution to participants (9,243,587) (374,746) (2,718,982) (318,841) (86,257) (5,333)
Administrative expenses/credits (19,771) (1,507) (14,325) (657) (62) 396
Forfeitures (73,970) 6,399 10,199 10,963 1,717 3,481
------------ --------- ---------- --------- ------- -------
Total deductions (9,818,494) (392,799) (2,716,295) (352,618) (78,706) (3,486)
------------ --------- ---------- --------- ------- -------
Net increase (decrease)
prior to interfund transfers 80,131,925 826,688 (2,412,612) 1,123,542 (11,936) 180,493
Net interfund transfers (6,959,130) (12,802) 5,511,778 27,005 88,656 155,142
------------ --------- ---------- --------- ------- -------
Net increase (decrease)
in plan equity 73,172,795 813,886 3,099,166 1,150,547 76,720 335,635
Plan equity at beginning of period 61,363,778 2,817,337 1,636,797 3,044,148 368,508 126,141
------------ --------- ---------- --------- ------- -------
Plan equity at end of period $134,536,573 3,631,223 4,735,963 4,194,695 445,228 461,776
============ ========= ========== ========= ======= =======
Fidelity Galaxy
Advisor Galaxy Small
Growth Asset Company
Opportunities Allocation Equity Loan
Fund Fund Fund Fund Other Total
------------- ---------- --------- --------- -------- -----------
Investment income:
Dividends:
MacDermid common stock -- -- -- -- -- 342,798
Other securities 64,192 20,987 120,607 -- -- 728,029
--------- ------- --------- --------- -------- -----------
64,192 20,987 120,607 -- -- 1,070,827
Interest -- -- -- -- -- 276,355
Interest on participants loans 2,845 4,112 6,073 -- -- 159,655
Other income -- -- -- -- -- 299,583
--------- ------- --------- --------- -------- -----------
Total interest and dividends 67,037 25,099 126,680 -- -- 1,806,420
--------- ------- --------- --------- -------- -----------
Realized gain (loss) from sales of
investments (note 7):
MacDermid common stock -- -- -- -- -- 16,502,202
Other securities 9,805 2,060 (13,900) -- -- 552,818
--------- ------- --------- --------- -------- -----------
9,805 2,060 (13,900) -- -- 17,055,020
Unrealized appreciation
depreciation) of
investments (note 6) 136,495 20,358 7,278 -- -- 72,540,613
--------- ------- --------- --------- -------- -----------
Total investment income 213,337 47,517 120,058 -- -- 91,402,053
Contributions:
Rollover 31,137 -- 1,707 -- -- 60,508
Employer -- -- -- -- 347,558 845,660
Employee 2,059 963 1,639 -- -- 1,057,382
401k 98,590 35,209 93,580 -- -- 828,249
--------- ------- --------- --------- -------- -----------
Total additions 345,123 83,689 216,984 -- 347,558 94,193,852
--------- ------- --------- --------- -------- -----------
Net loans 3,668 6,128 21,402 506,317 -- --
Distribution to participants (9,758) (1,738) (3,297) (67,324) -- (12,829,863)
Administrative expenses/credits 633 22 265 -- -- (35,006)
Forfeitures 6,193 2,529 6,220 -- -- (26,269)
--------- ------- --------- --------- -------- -----------
Total deductions 736 6,941 24,590 438,993 -- (12,891,138)
--------- ------- --------- --------- -------- -----------
Net increase (decrease)
prior to interfund transfers 345,859 90,630 241,574 438,993 347,558 81,302,714
Net interfund transfers 567,841 57,636 837,426 -- (273,552) --
--------- ------- --------- --------- -------- -----------
Net increase (decrease)
in plan equity 913,700 148,266 1,079,000 438,993 74,006 81,302,714
Plan equity at beginning of period 168,219 104,760 158,675 1,387,199 273,552 71,449,114
--------- ------- --------- --------- -------- -----------
Plan equity at end of period 1,081,919 253,026 1,237,675 1,826,192 347,558 152,751,828
========= ======= ========= ========= ======== ===========
See accompanying notes to financial statements.
8
13
MACDERMID, INCORPORATED PROFIT SHARING
AND EMPLOYEE STOCK OWNERSHIP PLAN
Statement of Income and Changes in Plan Equity with Fund Information
Year ended March 31, 1997
Individual
Company
Commingled Matched Employer
Company Stock Stock Equity
Stock Fund Fund Fund Fund
----------- ----------- ---------- ----------
Investment income:
Dividends:
MacDermid common stock $ -- -- 359,007 --
Other securities -- -- -- --
----------- ----------- ---------- ----------
-- -- 359,007 --
Interest -- -- 15,917 --
Interest on participants loans -- -- 39,666 --
Other income -- -- 3,965 --
----------- ----------- ---------- ----------
Total interest and dividends -- -- 418,555 --
----------- ----------- ---------- ----------
Realized gain (loss) from sales of
investments (note 7):
MacDermid common stock -- -- 2,128,199 --
Other securities -- -- -- 594,356
----------- ----------- ---------- ----------
-- -- 2,128,199 594,356
----------- ----------- ---------- ----------
Unrealized appreciation (depreciation)
of investments (note 6) 9,167 48,883 20,437,306 (563,654)
----------- ----------- ---------- ----------
Contributions and distributions:
Contributions:
Employer -- -- 470,443 --
Employee (after tax) 2,100 -- 983,640 --
Employee 401(k) (pretax) (2,017) -- 222,959 1,135
Forfeitures in (out) -- -- -- --
Distributions to participants (5,084) (15,147) (3,835,348) (2,000)
Administrative expense (75) 2,562 (18,698) --
Net loans to participants -- -- (1,055,675) --
----------- ----------- ---------- ----------
(5,076) (12,585) (3,232,679) (865)
----------- ----------- ---------- ----------
Net increase (decrease) prior to transfers 4,091 36,298 17,204,627 (564,519)
Transfer from MacDermid, Incorporated Employee Stock
Ownership Plan, net -- -- 10,211,531 --
Net interfund transfers (5,224,631) (26,038,490) 31,400,866 (2,827,214)
----------- ----------- ---------- ----------
Net increase (decrease) in plan equity (5,220,540) (26,002,192) 58,817,024 (3,391,733)
Plan equity at beginning of period 5,220,540 26,002,192 -- 2,797,377
----------- ----------- ---------- ----------
Plan equity at end of period $ -- -- 58,817,024 (594,356)
=========== =========== ========== ==========
Fidelity Retirement
Advisor Government Fleet
Equity Money Stable Fidelity
Income Market Asset Magellan
Fund Fund Fund Fund
--------- ---------- --------- ---------
Investment income:
Dividends:
MacDermid common stock -- -- -- --
Other securities 109,811 -- -- 538,593
--------- ---------- --------- ---------
109,811 -- -- 538,593
Interest 244 288 100,389 10
Interest on participants loans 3,552 -- 2,489 7,247
Other income -- -- -- --
--------- ---------- --------- ---------
Total interest and dividends 113,607 288 102,878 545,850
--------- ---------- --------- ---------
Realized gain (loss) from sales of
investments (note 7):
MacDermid common stock -- -- -- --
Other securities 18,759 -- -- 83,677
--------- ---------- --------- ---------
18,759 -- -- 83,677
--------- ---------- --------- ---------
Unrealized appreciation (depreciation)
of investments (note 6) 149,475 4,513 -- (287,896)
--------- ---------- --------- ---------
Contributions and distributions:
Contributions:
Employer -- -- -- --
Employee (after tax) 4,808 -- 1,177 2,437
Employee 401(k) (pretax) 94,110 29 59,956 133,621
Forfeitures in (out) (132) -- -- --
Distributions to participants (219,630) (15,262) (420,551) (341,447)
Administrative expense (1,486) (4,513) (4,379) (1,199)
Net loans to participants (68,592) -- (69,775) (221,521)
--------- ---------- --------- ---------
(190,922) (19,746) (433,572) (428,109)
--------- ---------- --------- ---------
Net increase (decrease) prior to transfers (41,447) (15,233) (433,572) (716,005)
Transfer from MacDermid, Incorporated Employee Stock
Ownership Plan, net -- -- -- --
Net interfund transfers 2,726,418 (1,996,301) 1,967,491 (223,565)
--------- ---------- --------- ---------
Net increase (decrease) in plan equity 2,684,971 (2,011,534) 1,533,919 (939,570)
Plan equity at beginning of period -- 2,011,246 -- 3,354,191
--------- ---------- --------- ---------
Plan equity at end of period 2,684,971 (288) 1,533,919 2,414,621
========= ========== ========= =========
See accompanying notes to financial statements.
9
14
MACDERMID, INCORPORATED PROFIT SHARING
AND EMPLOYEE STOCK OWNERSHIP PLAN
Statement of Income and Changes in Plan Equity with Fund Information
Year ended March 31, 1997
Participant Directed
-------------------------------------------------------------
Fidelity Galaxy Fidelity
Advisor Large Advisor Galaxy
Intermediate Company Growth Asset
Intermediate Bond Index Opportunities Allocation
Bond Fund Fund Fund Fund Fund
------------ ----------- ------- ------------- ----------
Investment income:
Dividends:
MacDermid common stock $ -- -- -- -- --
Other investments -- 22,538 3,160 4,322 4,318
--------- ------- ------- ------- -------
-- 22,538 3,160 4,322 4,318
Interest -- 342 -- -- --
Interest on participants loans -- 1,216 628 1,174 2,016
Other income -- -- -- -- --
--------- ------- ------- ------- -------
Total interest and dividends -- 24,096 3,788 5,496 6,334
--------- ------- ------- ------- -------
Realized gain (loss) from sales of
investments (note 7):
MacDermid common stock -- -- -- -- --
Other investments 2,190 519 433 197 297
--------- ------- ------- ------- -------
2,190 519 433 197 297
--------- ------- ------- ------- -------
Unrealized appreciation (depreciation) of
investments (note 6) (1,912) (4,763) 2,353 453 (2,220)
--------- ------- ------- ------- -------
Contributions and distributions:
Contributions:
Employer -- 1,045 448 2,588 1,031
Employee (after tax) 262 24,555 42,151 97,928 41,288
Employee 401(k) (pretax) -- -- -- -- --
Forfeitures in (out) (1,000) (4,386) (906) (488) (992)
Distributions to participants -- (67) (14) (65) (1,248)
Administrative expense -- (21,979) 1,660 386 2,670
Net loans to participants (738) (832) 43,339 100,349 42,749
--------- ------- ------- ------- -------
Net increase (decrease) prior to transfers (1,476) (1,664) 86,678 200,698 85,498
Transfer from MacDermid, Incorporated Employee Stock
Ownership Plan, net -- -- -- -- --
Net interfund transfers (417,956) 349,488 76,228 61,724 57,600
--------- ------- ------- ------- -------
Net increase (decrease) in plan equity (419,432) 347,824 162,906 262,422 143,098
Plan equity at beginning of period 418,416 -- -- -- --
--------- ------- ------- ------- -------
Plan equity at end of period $ (1,016) 347,824 162,906 262,422 143,098
========= ======= ======= ======= =======
Participant Directed
---------------------
Galaxy Non-
Small participant
Company directed
Equity Loan -----------
Fund Fund Other Total
------- --------- ------- ----------
Investment income:
Dividends:
MacDermid common stock -- -- -- 359,007
Other investments 18,083 -- -- 700,825
------- --------- ------- ----------
18,083 -- -- 1,059,832
Interest -- -- -- 117,190
Interest on participants loans 1,433 -- -- 59,421
Other income -- -- -- 3,965
------- --------- ------- ----------
Total interest and dividends 19,516 -- -- 1,240,408
------- --------- ------- ----------
Realized gain (loss) from sales of
investments (note 7):
MacDermid common stock -- -- -- 2,128,199
Other investments (1,325) -- -- 699,103
------- --------- ------- ----------
(1,325) -- -- 699,103
------- --------- ------- ----------
Unrealized appreciation (depreciation) of
investments (note 6) (35,489) -- -- 19,756,216
------- --------- ------- ----------
Contributions and distributions:
Contributions:
Employer 1,421 -- 273,552 743,995
Employee (after tax) 84,699 -- -- 1,000,695
Employee 401(k) (pretax) -- -- -- 800,676
Forfeitures in (out) (158) (43,322) -- (132)
Distributions to participants (636) -- -- (4,905,721)
Administrative expense 2,305 1,430,521 -- (29,818)
Net loans to participants 87,631 1,387,199 273,552 (2,390,305)
------- --------- ------- ----------
Net increase (decrease) prior to transfers 175,262 2,774,398 547,104 (4,780,610)
Transfer from MacDermid, Incorporated Employee Stock
Ownership Plan, net -- -- -- 10,211,531
Net interfund transfers 88,342 -- -- --
------- --------- ------- ----------
Net increase (decrease) in plan equity 263,604 2,774,398 547,104 5,430,921
Plan equity at beginning of period -- -- -- 39,803,962
------- --------- ------- ----------
Plan equity at end of period 263,604 2,774,398 547,104 45,234,883
======= ========= ======= ==========
See accompanying notes to financial statements.
10
15
MACDERMID, INCORPORATED PROFIT SHARING
AND EMPLOYEE STOCK OWNERSHIP PLAN
Notes to Financial Statements
March 31, 1999, 1998 and 1997
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) BASIS OF PRESENTATION
The accompanying financial statements have been prepared on an
accrual basis. Current values of investments are determined using
quoted market prices and current yields. Purchases and sales of
securities are recorded on a trade-date basis. The cost of
investments sold is determined on an average cost basis.
(b) TRUST FUND
Fleet National Bank was the Trustee of the Plan through December
31, 1998. As of January 1, 1999, Fleet National Bank was replaced
by Prudential Investment Services as Trustee. Under the terms of a
trust agreement between the Trustee and the MacDermid,
Incorporated Employees Profit Sharing and Employee Stock Ownership
Plan (the Plan), the Trustee manages a trust fund on behalf of the
Plan. The Plan Trustee has discretionary authority concerning
purchases and sales of investments in the trust fund. The
investments and changes therein of this trust fund have been
reported to the Plan by the Trustee as having been determined
through the use of current values for all assets and liabilities.
(c) PLAN MERGER
On January 1, 1998, MacDermid Incorporated merged its wholly-owned
subsidiary MacDermid Imaging Technology, Inc. into the parent
organization. As a result, the MacDermid Imaging Technology, Inc.
401(k) and Profit Sharing Plan was merged, into the Plan effective
January 1, 1999.
(d) USE OF ESTIMATES
The preparation of financial statements in conformity with
generally accepted accounting principles requires the plan
administrator to make estimates and assumptions that affect the
reported amounts of assets, liabilities, and changes therein, and
the disclosure of contingent assets and liabilities. Actual
results could differ from those estimates.
(2) PLAN PROVISIONS
The Plan, as amended and restated, is a defined contribution plan
sponsored by MacDermid, Incorporated (the Company).
Effective January 1, 1999, the ESOP provision of the plan was changed to
allow participants to contribute to the plan using pre-tax dollars. This
provision is referred to as a KSOP.
(Continued)
11
16
MACDERMID, INCORPORATED PROFIT SHARING
AND EMPLOYEE STOCK OWNERSHIP PLAN
Notes to Financial Statements
March 31, 1999, 1998 and 1997
Under the terms of the Plan, employees who have completed three months of
service are eligible to contribute under the KSOP, 401(k) and after-tax
options. Participating employees may elect to have any percentage up to
3% deducted from their after-tax wages and used to purchase MacDermid,
Inc. stock. The Company will match 50% of the employee's contribution, up
to a maximum of 3.5% of the employee's compensation. Employees may elect
to make pre-tax contributions under the KSOP and 401(k) options of up to
15% of eligible compensation up to the IRS limit of $10,000 in 1999
($10,000 in 1998 and $9,500 in 1997). Employees can also choose to have
after-tax contributions invested in the same investment options as the
401(k) arrangement.
The Company may make profit-sharing contributions to the Plan. This is a
discretionary contribution determined by the Board of Directors. In order
to be eligible for the profit-sharing contributions, employees must be at
least 21 years of age, have completed one year of service, and must have
completed at least 1,000 hours of employment with the Company within a
12-month period. Employees will be eligible for profit sharing as of the
April 1st nearest to their completion of the above requirements.
Employees vest immediately as to their contributions. Full vesting with
respect to the Company's contributions requires five years of credited
service, except that full vesting will apply when an employee attains age
55, dies or becomes totally disabled. Any forfeited amounts related to
the maximum additional 3.5% of compensation allocated to the MacDermid,
Inc. Stock Fund are used to reduce the cash contribution required by the
Company in the following year. All other forfeitures are allocated on a
pro rata basis to Plan participants with at least one year of
participation in the Plan based on eligible compensation. Forfeitures
used to reduce the cash contribution were $47,818, $68,060 and $24,387 in
Plan years 1999, 1998 and 1997, respectively.
Distribution of participants' interests upon separation shall be paid in
(a) a lump sum, (b) equal installments over a period not to exceed 15
years, or (c) through the purchase of a single premium annuity contract
as the participant elects but subject to the approval of the Plan
Administrator.
The Company expects to continue the Plan indefinitely, but necessarily
reserves the right to amend, modify or terminate the Plan at any time. If
it is necessary to discontinue the Plan, the assets in the Trust Fund
will be used to provide benefits in accordance with the provisions of the
Plan document.
(3) FEDERAL INCOME TAXES
The Plan has received a tax determination letter from the Internal
Revenue Service (IRS) dated July 13, 1995 indicating that the Plan
qualifies under the provisions of Section 501(a) of the Internal Revenue
Code (IRC) and is exempt from federal income taxes. The Plan has been
amended since receiving the determination letter. However, the Company
believes the Plan is designed and is currently being operated in
compliance with the applicable sections of the IRC.
(Continued)
12
17
MACDERMID, INCORPORATED PROFIT SHARING
AND EMPLOYEE STOCK OWNERSHIP PLAN
Notes to Financial Statements
March 31, 1999, 1998 and 1997
Plan participants are taxed on plan benefits at the time of distribution
to the extent such distribution exceeds a participant's post-tax
contribution to the Plan. Effective January 1, 1993, the Plan withholds
the mandatory 20% federal tax from all taxable distributions which are
not direct rollovers. The tax consequences to the participant will depend
on the type of distribution (lump sum, annuity or installments).
(4) INVESTMENT PROGRAMS
Plan participants may elect among fourteen separate investment funds in
which to have their contributions and a portion of the Company's
contributions invested. Company contributions in excess of 5% of a
participant's annual salary must be invested in the Employer Stock Fund.
The fourteen investment funds as of March 31, 1999 are as follows:
(1) EMPLOYER STOCK FUND - This fund consists primarily of common stock
of the Company.
(2) NORWEST STABLE VALUE FUND 65 - This fund seeks to provide safety of
principal, adequate liquidity and returns superior to shorter
maturity alternatives.
(3) PRUDENTIAL EQUITY FUND A - This fund's primary objective is to seek
long-term growth of Capital by investing in common stocks of major
established corporations.
(4) PRUDENTIAL INTERMEDIATE GLOBAL INCOME A - This fund's primary
objective is to seek current income and capital appreciation.
(5) GOLDMAN SACHS GOVERNMENT INCOME FUND - This fund seeks income
through investment in U.S. Government securities and related
repurchase agreements.
(6) PRUDENTIAL EQUITY INCOME A - This fund seeks both current income and
Capital appreciation by investing in various assets of domestic and
foreign origin.
(7) PIMCO LOW DURATION A - This fund seeks total return and normally
invests in debt with an average duration between one and three
years.
(8) AIM BALANCED FUND A - This fund seeks total return and invests in
both equities and investment grade fixed income securities.
(9) KEMPER-DREMAN HIGH RETURN EQUITY A - This fund seeks total return
and invests primarily in common stocks that pay high dividends
relative to the dividend yield of the Standard & Poor's 500 Index.
(10) OPPENHEIMER QUEST VALUE A - This fund seeks capital appreciation and
invests in companies that are judged to be undervalued relative to
assets, earnings, growth potential and cash flows.
(Continued)
13
18
MACDERMID, INCORPORATED PROFIT SHARING
AND EMPLOYEE STOCK OWNERSHIP PLAN
Notes to Financial Statements
March 31, 1999, 1998 and 1997
(11) PRUDENTIAL STOCK INDEX Z - The fund seeks to replicate the
performance of the Standard & Poor's 500 Index by investing in
companies that appear in the Index.
(12) VAN KAMPEN AMERICAN VALUE FUND A - This fund seeks long term return
by investing in companies with market capitalizations of $1 billion
or less.
(13) PRUDENTIAL EUROPE GROWTH A - This fund seeks long term growth of
capital by investing in equities issued in European countries.
(14) PRUDENTIAL WORLD FUND - This fund seeks long term capital growth
with income becoming secondary. The fund invests in domestic and
foreign common stocks.
Participants may elect to transfer amounts from one investment fund
to another, up to once per day, using a voice mail response system.
(5) INVESTMENTS
The following table represents the cost and fair value of investments.
Investments that represent 5% or more the Plan's net assets are
separately identified:
MARCH 31, 1999 MARCH 31, 1998
---------------------------- ---------------------------
FAIR FAIR
COST VALUE COST VALUE
----------- ------------ ----------- ------------
MacDermid common stock $25,458,888 130,815,052 14,443,385 133,166,493
Mutual Funds:
Norwest Stable Value
Fund 65 9,918,176 10,121,617 -- --
Other 20,288,522 20,236,821 16,659,130 18,750,185
----------- ------------ ----------- ------------
$55,665,585 161,173,490 31,102,515 151,916,678
=========== ============ =========== ============
(Continued)
14
19
MACDERMID, INCORPORATED EMPLOYEES PROFIT SHARING
AND EMPLOYEE STOCK OWNERSHIP PLAN
Notes to Financial Statements
March 31, 1999, 1998 and 1997
(6) UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS
The net unrealized appreciation (depreciation) of investments included
in Plan equity is as follows:
Individual FIDELITY Retirement
Commingled Company Advisor Government Fleet
Company Matched Employer Equity Money Stable
Stock Stock Stock Equity Income Market Asset
Fund Fund Fund Fund Fund Fund Fund
------------ ------------ ------------ --------- --------- ---------- ---------
Balance, March 31, 1996 $ 3,112,297 17,324,116 -- 563,654 -- (4,513) --
Net change for 1997 (3,112,297) (17,324,116) 47,847,666 (563,654) 149,475 4,513 --
----------- ------------ ------------ --------- --------- -------- ---------
Balance, March 31, 1997 -- -- 47,847,666 -- 149,475 -- --
Net change for 1998 -- -- 70,875,442 -- 551,838 -- --
----------- ------------ ------------ --------- --------- -------- ----------
Balance, March 31, 1998 -- -- 118,723,108 -- 701,313 -- --
Appreciation (depreciation) -- -- (13,366,944) -- (701,313) -- --
----------- ------------ ------------ --------- --------- --------- ----------
Balance, March 31, 1999 $ -- -- 105,356,164 -- -- -- --
=========== ============ ============ ========= ========= ========= ==========
Fleet
Advisor Galaxy Fleet Galaxy
Inter- Inter- Large Advisor Galaxy Small
Fidelity mediate mediate Company Growth Asset Company
Magellan Bond Bond Index Opportunities Allocation Equity
Fund Fund Fund Fund Fund Fund Fund
----------- --------- --------- ---------- ------------ ---------- ---------
Balance, March 31, 1996 603,971 1,912 -- -- -- -- --
Net change for 1997 (287,896) (1,912) (4,763) 2,353 453 (2,220) (35,489)
----------- --------- -------- ---------- ---------- -------- -------
Balance, March 31, 1997 316,075 -- (4,763) 2,353 453 (2,220) (35,489)
Net change for 1998 861,955 -- 8,050 79,197 136,495 20,358 7,278
----------- --------- -------- ---------- ---------- -------- -------
Balance, March 31, 1998 1,178,030 -- 3,287 81,550 136,948 18,138 (28,211)
Appreciation (depreciation) (1,178,030) -- (3,287) (81,550) (136,948) (18,138) 28,211
----------- --------- -------- --------- ---------- -------- --------
Balance, March 31, 1999 -- -- -- -- -- -- --
=========== ========= ========= ========= ========== ======== ========
15
20
MACDERMID, INCORPORATED PROFIT SHARING
AND EMPLOYEE STOCK OWNERSHIP PLAN
Notes to Financial Statements
March 31, 1999, 1998 and 1997
(6) UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS
The net unrealized appreciation (depreciation) of investments included
in Plan equity is as follows:
Oppenheimer Norwest Prudential Prudential Prudential PIMCO
Hercules Quest Stable Prudential Equity Intermediate Stock Low
Stock Value Value Equity Income Global Income Index Duration
Fund A Fund 65 Fund A A A Z A
---------- ----------- -------- --------- --------- ------------- --------- ---------
Balance, March 31, 1996 $ -- -- -- -- -- -- -- --
Net change for 1997 -- -- -- -- -- -- -- --
---------- ------ -------- -------- --------- -------- --------- -------
Balance, March 31, 1997 -- -- -- -- -- -- -- --
Net change for 1998 -- -- -- -- -- -- -- --
---------- ------ -------- -------- --------- -------- --------- -------
Balance, March 31, 1998 -- -- -- -- -- -- -- --
Appreciation (depreciation) (32,861) 115 203,441 18,881 444 (110) 91,435 (138)
---------- ------ -------- -------- --------- -------- --------- --------
Balance, March 31, 1999 $ (32,861) 115 203,441 18,881 444 (110) 91,640 (138)
========== ====== ======== ======== ========= ======== ========= ========
Kemper-
Prudential Dreman Van Kampen Goldman
Europe Prudential High Return American Sachs AIM
Growth World Equity Value Government Income Balanced
A Fund A Fund A Fund Fund Total
---------- --------- ----------- --------- ----------------- -------- ------------
Balance, March 31, 1996 -- -- -- -- -- -- 21,601,437
Net change for 1997 -- -- -- -- -- -- 26,672,113
------- -------- ---------- --------- -------- -------- ------------
Balance, March 31, 1997 -- -- -- -- -- -- 48,273,550
Net change for 1998 -- -- -- -- -- -- 72,540,613
------- -------- ---------- --------- -------- -------- ------------
Balance, March 31, 1998 -- -- -- -- -- -- 120,814,163
Appreciation (depreciation) (148) 24 (142,959) (6,717) 1,401 18,932 1,530
------- -------- ---------- --------- -------- -------- ------------
Balance, March 31, 1999 (148) 24 (142,959) (6,717) 1,401 18,932 105,507,904
======= ======== ========== ========= ======== ======== ============
16
21
MACDERMID, INCORPORATED PROFIT SHARING
AND EMPLOYEE STOCK OWNERSHIP PLAN
Notes to Financial Statements
March 31, 1999, 1998 and 1997
(7) REALIZED GAIN (LOSS) FROM SALES OF INVESTMENTS
YEAR ENDED MARCH 31, 1999
-------------------------------------------
PROCEEDS COST GAIN (LOSS)
----------- ---------- -----------
Employer Stock Fund:
MacDermid Common Stock $44,515,627 6,325,540 38,190,087
Fidelity Advisor Equity Income Fund:
Other Securities 4,845,613 4,236,533 609,080
Fidelity Magellan Fund:
Other Securities 6,177,418 4,663,361 1,514,057
Fidelity Advisor Intermediate Bond Fund:
Other Securities 4,173,395 4,161,977 11,418
Galaxy Large Company Index Fund:
Other Securities 1,851,273 1,700,233 151,040
Fidelity Advisor Growth Opportunities Fund:
Other Securities 2,610,195 2,419,919 190,276
Galaxy Asset Allocation Fund:
Other Securities 523,300 489,302 33,998
Galaxy Small Company Equity Fund:
Other Securities 1,333,358 1,549,020 (215,662)
Hercules Stock Fund:
Other Securities 15,944 16,488 (544)
Oppenheimer Quest Value A:
Other Securities 213 209 4
Norwest Stable Value Fund 65:
Other Securities 898,605 892,665 5,940
Prudential Equity Fund A:
Other Securities 445,861 455,409 (9,548)
Prudential Equity Income A:
Other Securities 104 102 2
Prudential Intermediate Global Income A:
Other Securities 133 138 (5)
Prudential Stock Index Z:
Other Securities 188,799 182,372 6,427
PIMCO Low Duration A:
Other Securities 447,978 451,059 (3,081)
(Continued)
17
22
MACDERMID, INCORPORATED PROFIT SHARING
AND EMPLOYEE STOCK OWNERSHIP PLAN
Notes to Financial Statements
March 31, 1999, 1998 and 1997
YEAR ENDED MARCH 31, 1999
-------------------------------------------
PROCEEDS COST GAIN (LOSS)
----------- ---------- -----------
Prudential Europe Growth A:
Other Securities 148 153 (5)
Kemper-Dreman High Return Equity A:
Other Securities 716,140 743,414 (27,274)
Van Kampen American Value Fund A:
Other Securities 86,887 93,146 (6,259)
Goldman Sachs Government Income Fund:
Other Securities 112,424 113,838 (1,414)
AIM Balanced Fund:
Other Securities 55,428 54,366 1,062
----------- ---------- -----------
Total $68,998,840 28,549,244 40,484,294
=========== ========== ===========
YEAR ENDED MARCH 31, 1998
-------------------------------------------
PROCEEDS COST GAIN (LOSS)
----------- ---------- -----------
Employer Stock Fund:
MacDermid Common Stock $18,855,959 2,353,757 16,502,202
Fidelity Advisor Equity Income Fund:
Other Securities 1,989,638 1,666,251 323,387
Fidelity Magellan Fund:
Other Securities 929,012 713,967 215,045
Fidelity Advisor Intermediate Bond Fund:
Other Securities 627,760 622,598 5,162
Galaxy Large Company Index Fund:
Other Securities 111,248 99,989 11,259
Fidelity Advisor Growth Opportunities Fund:
Other Securities 111,212 101,407 9,805
Galaxy Asset Allocation Fund:
Other Securities 49,442 47,382 2,060
Galaxy Small Company Equity Fund:
Other Securities 112,161 126,061 (13,900)
----------- --------- -----------
Total $22,786,432 5,731,412 17,055,020
=========== ========= ===========
(Continued)
18
23
MACDERMID, INCORPORATED PROFIT SHARING
AND EMPLOYEE STOCK OWNERSHIP PLAN
Notes to Financial Statements
March 31, 1999, 1998 and 1997
YEAR ENDED MARCH 31, 1997
-------------------------------------------
PROCEEDS COST GAIN (LOSS)
----------- ---------- ----------
Employer Stock Fund:
MacDermid Common Stock $ 3,033,059 904,860 2,128,199
Other securities 2,512,872 2,512,872 --
----------- --------- ----------
5,545,931 3,417,732 2,128,199
----------- --------- ----------
Equity Fund:
Other securities 2,738,572 2,144,216 594,356
Fidelity Advisor Equity Income Fund:
Other Securities 419,041 400,282 18,759
Fidelity Magellan Fund:
Other Securities 985,420 901,743 83,677
Intermediate Bond Fund:
Other Securities 299,182 296,992 2,190
Fidelity Advisor Intermediate Bond Fund:
Other Securities 206,371 205,852 519
Galaxy Large Company Index Fund:
Other Securities 6,577 6,144 433
Fidelity Advisor Growth Opportunities Fund:
Other Securities 6,567 6,370 197
Galaxy Asset Allocation Fund:
Other Securities 19,947 19,650 297
Galaxy Small Company Equity Fund:
Other Securities 39,456 40,781 (1,325)
----------- --------- ----------
Total $10,267,064 7,439,762 2,827,302
=========== ========= ==========
(8) PLAN MERGER
On April 1, 1996, the MacDermid, Inc. Employee Stock Ownership Plan (ESOP)
merged into the MacDermid, Incorporated Employees Profit Sharing Plan. At
the time of this merger, the plan was renamed the MacDermid, Incorporated
Employees Profit Sharing and Employee Stock Ownership Plan. In April 1996,
all securities of the ESOP were transferred to the Plan. MacDermid,
Incorporated common stock transferred to the Plan retained its historical
cost.
19
(Continued)
24
MACDERMID, INCORPORATED PROFIT SHARING
AND EMPLOYEE STOCK OWNERSHIP PLAN
Notes to Financial Statements
March 31, 1999, 1998 and 1997
(9) PARTICIPANT NOTES RECEIVABLE
Participants may borrow from their fund accounts a minimum of $1,000 up
to a maximum equal to the lesser of $50,000 or 50% of their vested
account balance. Loan transactions are treated as a transfer to (from)
the investment fund from (to) the Loan fund. Loan terms range from 1-5
years or up to 10 years for the purchase of a primary residence. The
loans are secured by the balance in the participant's account and bear
interest at a rate commensurate with local prevailing rates as determined
quarterly by the Plan administrator. Interest rates range from 8.75% to
10.50% at March 31, 1999. Principal and interest is paid ratably through
regular payroll deductions.
(10) PARTICIPANT VALUATIONS
In reconciling the year end balances, it was discovered there was a
discrepancy in the price used in valuing certain assets in the Trust and
the participants' account balances. This discrepancy, in MacDermid Inc.
common stock, was caused by an error in the program used to determine the
daily unit value for participant accounts.
Fleet Bank repriced the units and reprocessed the participants' accounts
before being removed as Trustee on December 31, 1998. The calculated
shortfall was approximately $20,000 with the Plan being made whole before
the assets in the trust were transferred to Prudential Investment
Services, the new trustee.
(11) SUBSEQUENT EVENT INFORMATION
On July 1, 1999, MacDermid Incorporated removed the Norwest Stable Value
Fund 65 from its list of choices in the Plan. This fund was replaced by
the following:
PIMCO TOTAL RETURN A: The fund seeks a total return that is
consistent with preservation of capital by investing in debt
securities, which include US Government and Corporate Bonds.
PRUDENTIAL MONEYMART ASSETS: The fund seeks to maximize
current income with stability of capital and the maintenance
of liquidity by investing in money market instruments that
mature in thirteen months or less.
20
25
MACDERMID, INCORPORATED PROFIT SHARING
AND EMPLOYEES STOCK OWNERSHIP PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
Year ended March 31, 1999
DESCRIPTION OF INVESTMENT
INCLUDING MATURITY DATE
IDENTITY OF ISSUER, BORROWER, RATE OF INTEREST, COLLATERAL, CURRENT
LESSOR, OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
- -------------------------------- ---------------------------- ----------- -----------
*Employer Stock Fund 3,854,644 shares $25,458,888 130,815,052
*Prudential Equity Fund A 238,207 shares 4,709,519 4,728,400
*Prudential Equity Income Fund A 12,267.30 shares 223,657 224,001
*Prudential Intermediate Global
Income A 744 shares 5,911 5,801
*Prudential Stock Index Z 77,496 shares 2,148,945 2,240,380
*Prudential Europe Growth A 1,095 shares 20,336 20,188
*Prudential World Fund 271 shares 4,894 4,918
Oppenheimer Quest Value A 377 shares 7,873 7,988
PIMCO Low Duration A 21,782 shares 220,141 220,003
Kemper-Dreman High Return Equity A 171,823 shares 5,830,314 5,687,355
Van Kampen American Value Fund A 23,311 shares 459,644 452,927
Goldman Sachs Government Income Fund 244, 412 shares 3,469,249 3,470,650
AIM Balanced Fund A 26,184.8822 shares 734,145 753,077
Hercules Stock Fund 14,425 shares 397,094 364,233
Norwest Stable Value Fund 65 379,592 shares 9,918,176 10,121,617
Participant Loans 7.3%-10.5% 2,056,900 2,056,900
----------- -----------
Grand total $55,665,585 161,173,490
=========== ===========
*Represents a party-in-interest.
21
26
Schedule 2
MACDERMID, INCORPORATED PROFIT SHARING
AND EMPLOYEE STOCK OWNERSHIP PLAN
Item 27d - Schedule of Reportable Transactions
For the year ended March 31, 1999
Description
of assets Expenses
(include interest Number included
rate and maturity ---------------- Purchase Selling Lease with
Description in case of a loan) Purchase Sales price price rental transaction
- ------------------------- ----------------- -------- ------ ----------- ---------- -------- -----------
*Fleet Stable Asset Fund Mutual Fund 92 69 $10,122,617 14,836,009 -- --
*MacDermid, Incorporated Common Stock 38 45 14,937,096 44,515,628 -- --
*Norwest Stable Value
Fund 65 Mutual Fund 20 17 10,898,571 898,605 -- --
*Indicates a party-in-interest.
Cost of asset Current value of asset
------------------------- on transaction date Net
Description Purchase Sales Purchase Sales (loss)
- ------------------------- ----------- ---------- ----------- ---------- ----------
*Galaxy Stable Asset Fund 10,122,617 14,836,009 10,122,617 14,836,009 --
*MacDermid, Incorporated 14,937,096 44,515,628 14,937,096 44,515,628 38,190,087
*Stable Value Fund 10,898,571 892,665 10,898,571 898,605 5,940
*Indicates a party-in-interest.
22