SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
-------------
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
(MARK ONE):
[X] ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF
1934 [NO FEE REQUIRED, EFFECTIVE OCTOBER 7, 1996].
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 [NO FEE REQUIRED].
FOR THE TRANSITION PERIOD FROM __________ TO __________
COMMISSION FILE NUMBER 1-14130
A. FULL TITLE OF THE PLAN AND THE ADDRESS OF THE PLAN, IF DIFFERENT FROM
THAT OF THE ISSUER NAMED BELOW: SID TOOL SAVINGS PLAN
B. NAME OF ISSUER OF THE SECURITIES HELD PURSUANT TO THE PLAN AND THE
ADDRESS OF ITS PRINCIPAL EXECUTIVE OFFICE: MSC INDUSTRIAL DIRECT CO., INC., 75
MAXESS ROAD, MELVILLE, NEW YORK 11747
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Plan Administrator has duly caused this annual report to be signed on its behalf
by the undersigned hereunto duly authorized.
SID TOOL SAVINGS PLAN
Date: June 13, 2001
\s\ Barbara Schwartz
---------------------------
Barbara Schwartz
Plan Administrator
SID TOOL SAVINGS PLAN
PLAN NUMBER: 003
PLAN EIN: 13-5526506
FINANCIAL STATEMENTS
DECEMBER 31, 2000 AND 1999
TOGETHER WITH AUDITORS' REPORT
SID TOOL SAVINGS PLAN
PLAN NUMBER: 003
PLAN EIN: 13-5526506
INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
DECEMBER 31, 2000 AND 1999
Page(s)
--------------
Report of Independent Public Accountants 1
Financial Statements:
Statements of Net Assets Available for Benefits as of December 31, 2000 and 1999 2
Statement of Changes in Net Assets Available for Benefits for the Year Ended 3
December 31, 2000
Notes to Financial Statements 4-10
Supplemental Schedules:
Form 5500 - Schedule of Assets Held for Investment Purposes as of December 31, 2000 11
Form 5500 - Schedule of Loans in Default as of December 31, 2000 12
All other schedules are omitted as they are not applicable or are not required
based on the disclosure requirements of the Employee Retirement Income Security
Act of 1974, as amended, and applicable regulations issued by the Department of
Labor.
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Plan Administrator and Trustee of the
Sid Tool Savings Plan:
We have audited the accompanying statements of net assets available for benefits
of the Sid Tool Savings Plan (the "Plan") as of December 31, 2000 and 1999, and
the related statement of changes in net assets available for benefits for the
year ended December 31, 2000. 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 auditing standards generally accepted
in the United States. 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 benefits of the Plan as of
December 31, 2000 and 1999, and the changes in its net assets available for
benefits for the year ended December 31, 2000, in conformity with accounting
principles generally accepted in the United States.
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 loans in default are presented for the purposes of
additional analysis and are not a required part of the basic financial
statements but are supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974, as amended. These supplemental schedules
are the responsibility of the Plan's management. The supplemental schedules 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.
Melville, New York
May 29, 2001
SID TOOL SAVINGS PLAN
PLAN NUMBER: 003
PLAN EIN: 13-5526506
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 2000 AND 1999
2000 1999
--------------- ----------------
Investments with custodian, at fair value $ 34,618,397 $ 34,464,345
--------------- ----------------
Receivables:
Employer contribution, net of forfeitures 72,265 19,856
Participant contributions 340,870 149,691
Participant loans 1,826,405 1,621,726
Accrued income 12,283 9,287
---------------- ----------------
Total receivables 2,251,823 1,800,560
---------------- ----------------
Net assets available for benefits $ 36,870,220 $ 36,264,905
=============== ================
The accompanying notes are an integral part of these statements.
SID TOOL SAVINGS PLAN
PLAN NUMBER: 003
PLAN EIN: 13-5526506
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 2000
Additions to net assets attributed to:
Investment income:
Net depreciation in fair value of investments $ (5,054,688)
Dividend and interest income 2,919,644
----------------
(2,135,044)
----------------
Contributions:
Participant 5,187,897
Employer, net of forfeitures 458,328
Other 7,772
----------------
5,653,997
----------------
Total additions 3,518,953
----------------
Deductions from net assets attributed to:
Benefits paid to participants 2,693,870
Withdrawals and fees 206,623
Other, net 20,487
----------------
Total deductions 2,920,980
----------------
Transfers:
Plan rollovers 12,572
Loan transactions, net (5,230)
----------------
Total transfers 7,342
----------------
Net increase 605,315
Net assets available for benefits:
Beginning of year 36,264,905
----------------
End of year $ 36,870,220
================
The accompanying notes are an integral part of this statement.
SID TOOL SAVINGS PLAN
PLAN NUMBER: 003
PLAN EIN: 13-5526506
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2000 AND 1999
1. DESCRIPTION OF PLAN
The following description of the Sid Tool Savings Plan (the "Plan") provides
only general information. More complete information regarding the Plan's
provisions may be found in the plan agreement.
General
- -------
Effective January 1, 1989, Sid Tool Co., Inc. (the "Company") adopted the Sid
Tool Co., Inc. Employee 401(k) Savings Plan (the "401(k) Plan") for the benefit
of its employees ("associates"). Effective September 1993, the 401(k) Plan and
the Sid Tool Co., Inc. Profit Sharing Plan merged into the Plan. The Plan is a
continuation of the 401(k) Plan. Upon completion of the merger, all assets of
both plans were contributed to the Plan. The Plan is a defined contribution
plan. It is subject to the provisions of the Employee Retirement Income Security
Act of 1974 ("ERISA").
The Plan is administered by Merrill Lynch (the "Trustee"). The Trustee exercises
responsibility over the administration and investment of Plan assets. In
addition, the custodian and recordkeeping responsibilities for the Plan are
performed by Merrill Lynch (the "Custodian" and "Recordkeeper").
Eligibility
- -----------
An associate is eligible for participation in the Plan on the first day of the
month after completing one full calendar month of service.
Contributions and Vesting
- -------------------------
Participants may elect to contribute between 1% and 15% of their earnings into
the Plan. Participants are immediately vested in their contributions plus actual
earnings thereon. The maximum annual contribution a participant could make into
the Plan was $10,500 during 2000 and 1999.
Excess contributions occur when elective contributions on behalf of highly
compensated employees exceed those permitted under the special nondiscrimination
rule under IRS code 401(k). A plan is not disqualified provided that the excess
contributions are distributed to the highly compensated employees. There were no
excess contributions during 2000 and 1999.
The Company may make a discretionary matching contribution based on the
participant's contributions, limited to 4% of compensation. The Company may also
make a discretionary non-matching contribution to participants to be allocated
in the same ratio as each participant's compensation bears to the total of such
compensation of all eligible participants. Participants must have completed
1,000 hours of service and be employed on the last day of the Plan year to be
eligible to share in the allocation of non-matching employer contributions.
Participants vest in Company contributions as follows:
Completed Years of Service Vested Percentage
--------------------------- ---------------------
less than 2 0%
2 but less than 3 20%
3 but less than 4 40%
4 but less than 5 60%
5 but less than 6 80%
6 or more 100%
In 2000, the Company's discretionary matching contributions were $662,958,
including the payment of the December 31, 1999 contribution receivable and the
application of forfeitures of approximately $204,630. There were no
discretionary non-matching contributions in 2000.
SID TOOL SAVINGS PLAN
PLAN NUMBER: 003
PLAN EIN: 13-5526506
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2000 AND 1999
Forfeitures
- -----------
Forfeitures of non-vested employer contributions are used to reduce future
employer discretionary matching contributions. Vested and non-vested forfeitures
accumulated during 2000 were $42,886, with a forfeiture balance of $202,665 as
of December 31, 2000.
Participant Loans
- -----------------
The Plan has a loan provision, which allows participants to borrow from the
Plan. The minimum loan is $1,000, and the maximum loan is 50% of a participants'
total vested account balance, not to exceed $50,000. The interest rate is
established at the prime rate as of the beginning of each month at which the
loan is made. Interest rates on outstanding loans as of December 31, 2000 ranged
from 8.0% to 10.5%. Interest paid by a participant on an outstanding loan is
paid directly into the participant's account. Principal and interest is paid
ratably through payroll deductions. The repayment period cannot exceed five
years unless the loan is used to acquire a participant's principal residence. A
participant can only have two loans outstanding from the Plan at any given time.
Payment of Benefits
- -------------------
On termination of service due to death, disability or retirement, a participant
may elect to receive either a lump-sum amount equal to the value of the
participant's vested interest in his or her account, or annual installments over
a ten-year period. For termination of service for other reasons, a participant
will receive the value of the vested interest in his or her account as a
lump-sum distribution.
Plan Expenses
- -------------
Expenses for recordkeeping, investment and other costs are paid by the Plan.
Accounting fees are paid by the Company.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
- -------------------
The financial statements of the Plan for 2000 and 1999 are prepared in
accordance with Accounting Principles Generally Accepted in the United States
("GAAP") and are based upon data provided by the Recordkeeper and/or Custodian,
adjusted for accruals for contributions receivable and excess contribution
payments due to participants based on the results of ERISA limit testing.
In September 1999, the American Institute of Certified Public Accountants issued
Statement of Position ("SOP") 99-3 "Accounting for and Reporting of Certain
Defined Contribution Plan Investments and Other Disclosure Matters." SOP 99-3
establishes standards for the reporting and disclosure of participant-directed
investment programs, which are no longer required to disclose amounts relating
to those individual programs as a separate fund in the financial statements, or
in the related disclosures. The Plan adopted the provisions of SOP 99-3 in 1999.
Investments
- -----------
The Plan's investments are stated at fair value. Quoted market prices are used
to value investments. Shares of mutual funds are valued at the net asset value
of shares held by the Plan at year-end.
Purchases and sales of securities are recorded on a trade-date basis. Dividends
are recorded on the ex-dividend date.
SID TOOL SAVINGS PLAN
PLAN NUMBER: 003
PLAN EIN: 13-5526506
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2000 AND 1999
Use of Estimates
- ----------------
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
3. INVESTMENTS
The fair value of individual investments that represent 5% or more of the Plan's
net assets are as follows:
December 31,
----------------- -------------
2000 1999
------------- -------------
ML Equity Index Trust Class A $ 5,375,204 $ 6,199,416
ML Retirement Preservation Trust 5,174,874 4,462,315
Federated Bond Fund Class A 2,405,771 2,136,072
Oppenheimer Global Fund 3,632,157 3,450,471
ML Growth Fund Class A 4,627,576 5,664,121
MFS Mass. Investors Trust Class A 1,860,046 2,020,736
ML Balanced Capital Fund Class A 2,142,821 2,378,515
4. INVESTMENT OPTIONS
Participants may allocate their contributions into the Plan among the following
27 options in 2000 (including a number of Merrill Lynch ("ML") options):
1) MSC Industrial Direct Inc. Class A Common Stock - The Plan Trustee will be
permitted to acquire, with amounts directed by participants to be invested
in the MSC Industrial Direct Co., Inc. Stock Fund, shares of Class A Common
Stock ("Common Stock") directly from the Company.
The Plan Trustee may acquire (sell) shares of Common Stock by purchasing
(selling) such shares on the principal national securities exchange on
which shares of Common Stock are traded on that date, and the cost of such
shares will be the weighted average purchase price (weighted average sale
price) paid by the Plan Trustee during a day. The price includes
commissions incurred in the purchase or sale. Alternatively, the Plan
Trustee may acquire shares of Common Stock directly from the Company. If
acquired directly from the Company, the cost of the shares of Common Stock
will be the average of the high and low of the Common Stock as traded on
the principal national securities exchange on which such shares are traded
on the date issued by the Company. The Plan Trustee may acquire shares of
Common Stock in a single purchase or over time, as they determine in their
sole discretion.
If circumstances so require, the Plan Trustee may suspend the purchase and
sale of shares of Common Stock. Such suspension will last until the Plan
Trustee determines that the circumstances causing the suspension have
ceased to exist. During the suspension period, the Plan Trustee will hold
all of the contributions directed to be invested in the fund in the ML
Retirement Preservation Trust.
The value of the MSC Industrial Direct Co., Inc. Stock Fund is subject to
fluctuation in the market price of the shares of Common Stock. There is no
guarantee of investment performance. Likewise, there is no guarantee that
the Company will pay dividends in the future. The fair market value of the
shares of Common Stock will be equal to the closing price of the Common
Stock as reported on the principal national securities exchange on which
such shares are traded on the date of valuation.
SID TOOL SAVINGS PLAN
PLAN NUMBER: 003
PLAN EIN: 13-5526506
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2000 AND 1999
2) ML Goal Manager Model Portfolios - Model Portfolios are composed of
investment options, with each model consisting of a different mix and,
therefore, a different risk and potential return profile. There are five
Goal Manager Model Portfolios available and these models utilize the funds
earmarked below in varying degrees.
3) ML Equity Index Trust Class A - Seeks to provide investment results that,
before expenses, replicate the total return of the Standard & Poor's 500
Composite Stock Price Index ("S&P 500"). In seeking to replicate the total
return of the S&P 500, management generally will allocate investments among
common stocks in approximately the same weighting as the index. Typically,
most of the assets will be comprised of all, or nearly all, 500 stocks in
the index in weightings closely aligned with those of the index. This fund
is also included in the Goal Manager Model Portfolios option.
4) ML Retirement Preservation Trust - Seeks to provide preservation of
capital, liquidity and current income at levels that are typically higher
than those provided by money market funds. The trust invests primarily in a
broadly diversified portfolio of Guaranteed Investment Contracts and in
obligations of U.S. government and government-agency securities. The trust
also invests in high-quality money market securities. Participants purchase
units that the trust seeks to maintain at $1.00 per unit, although this
cannot be assured. This fund is also included in the Goal Manager Model
Portfolios option.
5) MFS Emerging Growth Fund Class A - Seeks long-term growth of capital. The
fund invests primarily in small and medium-sized companies with growth
rates expected to be well above the growth rate of the overall economy and
the rate of inflation. Typically these companies are early in their life
cycles and have the potential to become major enterprises. The fund may
also invest in companies based on special factors such as new management,
new products or changes in consumer demand.
6) Davis Ser Inc. Real Estate Fund Class A - Seeks growth and income. The fund
normally invests at least 65% of its assets in securities of companies that
are principally engaged in the real-estate industry, that own significant
real-estate assets, that primarily invest in real-estate assets, or that
primarily invest the balance of assets in securities or other types of
companies. The fund may also invest in securities of foreign issuers.
7) ML Latin America Fund Class A - Seeks long-term capital appreciation
through investments in Latin American equity and debt securities. The
fund's objective reflects the belief that investment opportunities may
result in Latin America from an evolving longer-term international trend
encouraging greater market orientation and diminishing governmental
intervention in economic affairs. It is expected that, under normal
conditions, at least 65% of the fund's total assets will be invested in
Latin American securities. The fund may attempt to hedge against market and
currency risk through the use of options, futures, options on futures and
forward currency transactions.
8) Federated Bond Fund Class A - Seeks income consistent with preservation of
capital. The fund normally invests at least 65% of its assets in
investment-grade corporate bonds, U.S. government securities, preferred
stock, convertibles and cash. It may invest up to 35% of assets in debt
rated as low as B; it may invest up to 25% in debt securities of foreign
governments. This fund is also included in the Goal Manager Model
Portfolios option.
9) ML S&P 500 Index Fund Class A - Seeks to match the performance of the
Standard & Poor's 500 Composite Stock Price Index (the "S&P 500") as
closely as possible before the deduction of fund expenses. The fund invests
in the common stocks represented in the S&P 500 in roughly the same
proportions as their weightings in the S&P 500. The fund may also invest in
derivative instruments linked to the S&P 500. At times the fund may not
invest in all of the common stocks in the S&P 500, nor, in the same
weightings as the S&P 500. At those times, the fund chooses instruments so
that the market capitalization, industry weighting and other fundamental
characteristics of the stocks and derivative instruments chosen are similar
to the S&P as a whole. The fund may also engage in securities lending.
SID TOOL SAVINGS PLAN
PLAN NUMBER: 003
PLAN EIN: 13-5526506
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2000 AND 1999
10) PIMCO Long Term U.S. Government - Seeks total return consistent with
preservation of capital and prudent investment management. This fund
invests primarily in U.S. government securities, maintaining a minimum
portfolio duration of eight years. It may also invest in corporate bonds,
mortgage and asset-backed securities, variable-rate securities, futures and
options contracts, and cash equivalents.
11) AIM International Equity Fund Class A - Seeks long-term growth of capital
by investing in a diversified portfolio of international equity securities.
The fund will invest at least 70% of its total assets in marketable equity
securities. It may also invest up to 20% of its total assets in securities
that are convertible into equity securities of foreign companies which are
listed on a recognized foreign securities exchange or traded on a foreign
over-the-counter market. The fund's assets will be invested in the
securities of foreign companies located in at least four countries outside
the United States. It will emphasize investment in foreign companies in the
developed countries of Western Europe and the Pacific Basin and may also
invest to a limited extent in the securities of companies located in
developing countries in various regions of the world. This fund is also
included in the Goal Manager Model Portfolios option.
12) Alliance Corporate Bond Fund Class A - Seeks income; capital appreciation
is secondary. The fund normally invests at least 65% of its assets in
investment-grade debt securities. It may hold corporate bonds,
convertibles, U.S. government obligations and dollar-denominated foreign
debt.
13) Van Kampen Emerging Growth Fund Class A - Seeks capital appreciation. This
fund normally invests at least 65% of its assets in common stocks of
emerging-growth companies, and may invest up to 20% of its total assets in
securities of foreign issuers. This Fund may also invest in certain
derivative instruments such as options, futures, and options on futures,
which may subject the fund to additional risks. This fund is also included
in the Goal Manager Model Portfolios option.
14) Seligman Communication and Information Fund Class A - Seeks capital
appreciation. The fund normally invests at least 80% of its assets in
common stocks issued by companies that operate in the communication,
information and related industries. It invests in large, established media
corporations, as well as in smaller companies with rapidly changing
technologies and expansion characteristics. The fund may invest up to 10%
of its assets in foreign securities; this restriction does not apply to
depository receipts.
15) Oppenheimer Global Fund - Seeks capital appreciation. The fund invests
primarily in common stocks and convertible securities issued by U.S. and
foreign companies. It ordinarily maintains investments in at least three
countries. The fund may invest in securities of companies in cyclical
industries and special situations.
16) Alliance Quasar Fund Class A - Seeks growth of capital. The fund follows
aggressive investment policies and invests primarily in equity securities.
It may invest in new or established, listed or unlisted, and foreign or
domestic securities. The fund may engage in short sales and other
derivatives transactions. This fund is also included in the Goal Manager
Model Portfolios option.
17) ML Eurofund Class A - Seeks capital appreciation through investment
primarily in equities of corporations domiciled in Europe. The fund expects
that, under normal market conditions, at least 80% of the fund's net assets
will be invested in European corporate securities, primarily in common
stocks, debt and preferred securities convertible into common stocks.
Investments in foreign securities involve special risks, including foreign
currency risk and the possibility of substantial volatility due to adverse
political, economic or other developments.
SID TOOL SAVINGS PLAN
PLAN NUMBER: 003
PLAN EIN: 13-5526506
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2000 AND 1999
18) ML Growth Fund Class A - Seeks growth of capital and, secondarily, income
through a diversified portfolio of primarily equity securities, with
principal emphasis on issues believed by fund management to be undervalued.
The fund invests in securities that many investors consider to be
out-of-favor, but which fund management believes may have underlying value
that is not immediately apparent. In selecting securities believed to be
undervalued, the fund emphasizes securities of issuers with a market
capitalization of $500 million or greater, but the fund also has the
flexibility to invest in issues of smaller-capitalization companies with
similar value characteristics. The fund may invest up to 40% of its total
assets in foreign securities.
19) ML Global Allocation Fund Class A - Seeks high total investment return
consistent with prudent risk. The fund has a fully managed investment
policy utilizing U.S. and foreign equity, debt and money market securities,
the combination of which will be varied from time to time, both with
respect to types of securities and markets, in response to changing market
and economic trends. This investment approach provides the fund with the
opportunity to benefit from anticipated shifts in the relative performance
of different types of securities and different capital markets. The fund
may invest up to 35% of its total assets in non-investment-grade debt
securities (high-yield or "junk" bonds.)
20) ML Developing Capital Markets Fund Class A - Seeks long-term capital
appreciation by investing in securities, primarily equities, of issuers in
countries having smaller capital markets. It is currently expected that,
under normal conditions, at least 65% of the fund's net assets will be
invested in equity securities. The fund may employ a variety of investments
and techniques to hedge against market and currency risk, including
options, futures, options on futures and forward currency transactions.
21) AIM Equity Constellation Fund - Seeks capital appreciation. To work toward
this goal, the fund invests in small-to-medium-sized emerging growth
companies. Fund management will be particularly interested in companies
that are likely to benefit from new or innovative products, services or
processes that should enhance such companies' prospects for future growth
in earnings. The market prices of many of the securities purchased and held
by the fund may fluctuate widely.
22) MFS Mass. Investors Trust Class A - Seeks current income and long-term
growth of capital and income. The fund invests primarily in common stocks
and convertibles. It may invest up to 35% of its assets in foreign
securities; this limit does not apply to American Depositary Receipts. The
fund may invest a portion of the assets in debt securities and cash
equivalents. It may invest up to 15% of its assets in liquid securities.
This fund is also included in the Goal Manager Model Portfolios option.
23) MFS Research Fund - Seeks long-term growth of capital and future income.
The fund primarily invests in common stocks and convertible securities. It
may also invest in fixed-income securities; it may not invest more than 10%
of assets in securities rated below investment-grade. The fund may invest
up to 20% of its assets directly in foreign securities; it may also invest
in American Depository Receipts.
24) ML Balanced Capital Fund Class A - Seeks the highest total investment
return consistent with prudent risk primarily through a fully managed
investment policy that permits management of the fund to vary investment in
equity, debt and convertible securities based on its evaluation of changes
in economic and market trends. The fund invests in high-quality stocks,
corporate bonds and cash equivalents, and may invest up to 25% of its
assets in foreign securities.
25) ML Corporate Bond High Income Portfolio Fund Class A - Seeks a high level
of current income consistent with the investment policies of the portfolio
and with prudent investment management. As a secondary objective the fund
seeks capital appreciation, when consistent with its primary objective. The
fund invests substantially all of its assets in fixed-income securities
that are rated in the lower rating categories of the established rating
services or in unrated securities of comparable quality.
26) ML Pacific Fund Class A - The fund seeks long-term capital appreciation by
investing primarily in the equities of companies in the Far Eastern and
Western Pacific countries, including Japan, Australia, Hong Kong and
SID TOOL SAVINGS PLAN
PLAN NUMBER: 003
PLAN EIN: 13-5526506
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2000 AND 1999
Singapore. The Pacific Basin is one of the most rapidly growing regions in
the world, and its stock markets have often reflected that growth. The fund
is designed for investors who want to achieve diversification by investing
in economies of Far Eastern and Western Pacific countries. To hedge the
fund's portfolio against market and currency risk, fund management may
employ strategies that include the use of currency options and futures,
options on such futures and forward foreign-currency transactions. Such
strategies involve special risks and there can be no assurance that they
will be successful.
27) Davis New York Venture Fund Class A - Seeks growth of capital. To work
toward this goal, the fund normally invests in common stocks and
convertible securities that management believes to have above-average
appreciation potential. The fund may also invest up to 10% of its assets in
securities of foreign issuers and up to 10% of its assets in restricted
securities.
5. INCOME TAX STATUS
The Internal Revenue Service has determined and informed the Company, by a
letter dated March 27, 1997, that the Plan and the related trust are designed in
accordance with the applicable sections of the Internal Revenue Code (the
"Code"). The Company believes that the Plan is currently designed and being
operated in compliance with all sections of the Code for the year ended December
31, 2000.
6. RELATED PARTY TRANSACTIONS
Certain Plan investments are shares of mutual funds managed by ML. ML is the
trustee as defined by the Plan and, therefore, these transactions qualify as
party-in-interest transactions. Fees paid by the Plan for investment management
services amounted to $7,665 for the year ended December 31, 2000.
7. PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the right to
terminate the Plan at any time, subject to the provisions of ERISA.
SID TOOL SAVINGS PLAN
PLAN NUMBER: 003
PLAN EIN: 13-5526506
FORM 5500 - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 2000
Identity of Issuer Description Cost Current Value
- ------------------------ ------------------------------------------------------------- -------------------- -----------------
Merrill Lynch * MSC Industrial Direct Inc. Class A Common Stock $ 1,634,791 $ 1,717,500
Merrill Lynch * ML Equity Index Trust Class A 4,631,205 5,375,204
Merrill Lynch * ML Retirement Preservation Trust 5,174,874 5,174,874
Merrill Lynch * MFS Emerging Growth Fund Class A 1,123,302 975,765
Merrill Lynch * Davis Ser Inc Real Estate Fund A 21,346 22,153
Merrill Lynch * ML Latin America Fund Class A 22,349 22,116
Merrill Lynch * Federated Bond Fund Class A 2,619,931 2,405,771
Merrill Lynch * ML S&P 500 Index Fund Class A 558,375 541,786
Merrill Lynch * PIMCO Long Term US Government 48,855 51,169
Merrill Lynch * AIM International Equity Fund Class A 706,538 591,784
Merrill Lynch * Alliance Corporate Bond Fund Class A 51,269 49,452
Merrill Lynch * Van Kampen Emerging Growth Fund Class A 1,600,544 1,085,096
Merrill Lynch * Seligman Communication and Information Fund Class A 2,192,316 1,426,748
Merrill Lynch * Oppenheimer Global Fund 3,442,926 3,632,157
Merrill Lynch * Alliance Quasar Fund Class A 771,568 709,998
Merrill Lynch * ML Eurofund Class A 115,640 117,241
Merrill Lynch * ML Growth Fund Class A 5,782,461 4,627,576
Merrill Lynch * ML Global Allocation Fund Class A 252,315 237,709
Merrill Lynch * ML Developing Capital Markets Fund Class A 12,689 10,583
Merrill Lynch * AIM Equity Constellation Fund 835,020 661,460
Merrill Lynch * MFS Mass. Investors Trust Class A 1,886,169 1,860,046
Merrill Lynch * MFS Research Fund 219,038 195,605
Merrill Lynch * ML Balanced Capital Fund Class A 2,364,043 2,142,821
Merrill Lynch * ML Corporate Bond High Income Portfolio Fund Class A 138,020 109,605
Merrill Lynch * ML Pacific Fund Class A 96,361 73,005
Merrill Lynch * Davis New York Venture Fund Class A 671,771 692,964
Merrill Lynch * Cash Fund/CMA Money Fund N/A 57,619
Merrill Lynch * Pending Settlement Fund 50,590 50,590
Participant Loans * A commercial bank's fixed rate mortgage
(8.0% - 10.5% for 2000) N/A 1,826,405
-----------------
$ 36,444,802
=================
* Parties-in-interest
This schedule should be read in conjunction with the accompanying financial
statements and notes thereto.
SID TOOL SAVINGS PLAN
PLAN NUMBER: 003
PLAN EIN: 13-5526506
FORM 5500 - SCHEDULE OF LOANS IN DEFAULT
AS OF DECEMBER 31, 2000
Unpaid Balances
------------------------ ---------------------- --------------------
Identity of Obligor Original Loan Amount at End of Year Interest Rate
-------------------------------------- ------------------------ ---------------------- --------------------
111 Participant Loans $342,700 $202,367 8.0% - 10.5%
Consent of Independent Public Accountants
As independent public accountants, we hereby consent to the incorporation
of our report included in this Form 11-K, into the Company's previously filed
Registration Statement Nos. 33-98832, 333-10833, 333-31837, 333-46273, 333-48901
and 333-70293.
Arthur Andersen LLP
Melville, New York
June 13, 2001