1
FORM 11-K
(Mark one)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1993
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 #33-4333
RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN A
Ryder System, Inc.
3600 N.W. 82 Avenue
Miami, Florida 33166
2
Independent Auditors' Report
----------------------------
The Participants and Administrator
Ryder System, Inc. Employee Savings Plan A:
We have audited the accompanying statements of financial position with
fund information of Ryder System, Inc. Employee Savings Plan A as of December
31, 1993 and 1992, and the related statements of income and changes in plan
equity with fund information for each of the three years in the period ended
December 31, 1993. 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 net assets available for benefits of the Plan as of
December 31, 1993 and 1992, and the changes in net assets available for
benefits for each of the three years in the period ended December 31, 1993, in
conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental Schedules of
Investments and Schedule of 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 Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. The fund information in
the statements of financial position with fund information and statements of
income and changes in plan equity with fund information is presented for
purposes of additional analysis rather than to present the financial position
and changes in plan equity of each fund. The supplemental schedules and fund
information have been
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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.
KPMG PEAT MARWICK
June 29, 1994
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Ryder System, Inc. Employee Savings Plan A
Statement of Financial Position, with Fund Information
December 31, 1993
Assets Fund A Fund B Fund C Fund D Fund E Fund F Fund G
------------ ------------ ------------ ------------ ------------ ------------ ------------
Investments:
Fixed income investments,
at cost $ 87,019 100,673 33,622 38,611 17,967 8,700
Group annuity insurance
contracts, at contract
value 37,992,114
Pooled investment funds
(cost, $27,141,548) 3,550,153 7,172,703 15,734,448 3,639,562 2,878,836
Securities of
participating employer
(cost, $11,443,532) 11,019,753
Other Securities
(cost, $1,688,959)
Participant loans receivable
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total investments 11,106,772 38,092,787 3,550,153 7,206,325 15,773,059 3,657,529 2,887,536
Dividends and interest
receivable 208 516,479 7,871 27,099 574,615 339,161 4,157
Contributions receivable
and other 42,818 193,195 24,380 31,497 67,579 12,987 10,522
Interfund transfers
receivable (payable) 18,587 (204,637) (31,931) (2,066) 20,584 11,666 110,739
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total assets $ 11,168,385 38,597,824 3,550,473 7,262,855 16,435,837 4,021,343 3,012,954
============ ============ ============ ============ ============ ============ ============
Liabilities and Plan Equity
Other liabilities $ 146,051 955,622 47,532 85,841 714,087 370,791 51,273
Plan equity 11,022,334 37,642,202 3,502,941 7,177,014 15,721,750 3,650,552 2,961,681
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total liabilities
and plan equity $ 11,168,385 38,597,824 3,550,473 7,262,855 16,435,837 4,021,343 3,012,954
============ ============ ============ ============ ============ ============ ============
Number of units 4,799,428 24,322,241 1,916,938 2,053,299 3,072,642 2,070,460 1,750,584
============ ============ ============ ============ ============ ============ ============
Plan equity per unit $ 2.30 1.55 1.83 3.50 5.12 1.76 1.69
============ ============ ============ ============ ============ ============ ============
Assets Fund H Loan Fund Total
------------ ------------ ------------
Investments:
Fixed income investments,
at cost 286,592
Group annuity insurance
contracts, at contract
value 37,992,114
Pooled investment funds
(cost, $27,141,548) 32,975,702
Securities of
participating employer
(cost, $11,443,532) 11,019,753
Other Securities
(cost, $1,688,959) 1,603,189 1,603,189
Participant loans receivable 6,093,261 6,093,261
------------ ------------ ------------
Total investments 1,603,189 6,093,261 89,970,611
Dividends and interest
receivable 1,469,590
Contributions receivable
and other 32,297 415,275
Interfund transfers
receivable (payable) (22,728) 99,786 0
------------ ------------ ------------
Total assets 1,580,461 6,225,344 91,855,476
============ ============ ============
Liabilities and Plan Equity
Other liabilities 21,838 25,554 2,418,589
Plan equity 1,558,623 6,199,790 89,436,887
------------ ------------ ------------
Total liabilities
and plan equity 1,580,461 6,225,344 91,855,476
============ ============ ============
Number of units 789,329
============ ============ ============
Plan equity per unit 1.97
============
See accompanying note to financial statements.
5
Ryder System, Inc. Employee Savings Plan A
Statement of Financial Position, with Fund Information
December 31, 1992
Assets Fund A Fund B Fund C Fund D Fund E Fund F Fund G
------------ ------------ ------------ ------------ ------------ ------------ ------------
Investments:
Fixed income investments,
at cost $ 198,590 460,186 91,868 183,261 118,204 77,228
Group annuity insurance
contracts, at contract
value 79,232,409
Pooled investment funds
(cost, $69,356,332) 6,291,269 18,669,368 38,577,218 9,019,719 7,232,860
Securities of
participating employer
(cost, $35,569,632) 32,452,448
Participant loans receivable
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total investments 32,651,038 79,692,595 6,291,269 18,761,236 38,760,479 9,137,923 7,310,088
Dividends and interest
receivable 504 537,367 15,230 91,014 1,786,990 409,187 44,071
Contributions receivable
and other 14,456 320,232 19,920 19,858 71,830 17,911 12,621
Interfund transfers
receivable (payable) (186,231) (732,162) (286,638) 348,191 324,565 494,119 (351,573)
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total assets $ 32,479,767 79,818,032 6,039,781 19,220,299 40,943,864 10,059,140 7,015,207
============ ============ ============ ============ ============ ============ ============
Liabilities and Plan Equity
Other liabilities $ 251,584 585,626 95,021 274,169 2,042,174 472,986 79,932
Plan equity 32,228,183 79,232,406 5,944,760 18,946,130 38,901,690 9,586,154 6,935,275
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total liabilities
and plan equity $ 32,479,767 79,818,032 6,039,781 19,220,299 40,943,864 10,059,140 7,015,207
============ ============ ============ ============ ============ ============ ============
Number of units 16,084,509 55,258,272 3,352,450 6,129,610 9,006,816 6,650,453 5,464,485
============ ============ ============ ============ ============ ============ ============
Plan equity per unit $ 2.00 1.43 1.77 3.09 4.32 1.44 1.27
============ ============ ============ ============ ============ ============ ============
Assets Loan Fund Total
------------ ------------
Investments:
Fixed income investments,
at cost 1,129,337
Group annuity insurance
contracts, at contract
value 79,232,409
Pooled investment funds
(cost, $69,356,332) 79,790,434
Securities of
participating employer
(cost, $35,569,632) 32,452,448
Participant loans receivable 12,575,509 12,575,509
------------ ------------
Total investments 12,575,509 205,180,137
Dividends and interest
receivable 2,884,363
Contributions receivable
and other 75,324 552,152
Interfund transfers
receivable (payable) 389,729
------------ ------------
Total assets 13,040,562 208,616,652
============ ============
Liabilities and Plan Equity
Other liabilities 68,739 3,870,231
Plan equity 12,971,823 204,746,421
------------ ------------
Total liabilities
and plan equity 13,040,562 208,616,652
============ ============
Number of units
Plan equity per unit
See accompanying note to financial statements.
6
Ryder System, Inc. Employee Savings Plan A
Statement of Income and Changes in Plan Equity, with Fund Information
For the Year Ended December 31, 1993
Fund A Fund B Fund C Fund D Fund E Fund F Fund G
------------ ------------ ------------ ------------ ------------ ------------ -----------
Net investment income:
Dividends $ 248,296 588,220 521,963 288,719 263,794
Interest 2,190 2,623,034 98,840 1,555 2,924 1,375 969
------------ ------------ ------------ ------------ ------------ ------------ -----------
Net investment income 250,486 2,623,034 98,840 589,775 524,887 290,094 264,763
Realized gains 434,375 31,651 498,594 183,925 17,207
Net change in unrealized
appreciation/(depreciation)
on investments 740,128 185,220 1,354,915 102,716 363,458
Contributions:
Employer contributions 445,059 2,424,407 241,222 257,610 565,478 158,610 114,858
Employee contributions 1,123,867 5,611,608 630,263 883,386 1,942,571 610,970 391,051
------------ ------------ ------------ ------------ ------------ ------------ -----------
Total contributions 1,568,926 8,036,015 871,485 1,140,996 2,508,049 769,580 505,909
Participant loan repayments 274,494 1,312,672 142,951 263,280 537,845 116,988 83,623
Distributions and other (742,399) (2,192,949) (257,189) (416,114) (869,533) (137,845) (131,285)
Plan Fees and Expenses (20,771) (54,235) (9,570) (12,051) (21,366) (5,483) (4,730)
Loans to participants (425,449) (1,824,033) (196,712) (345,974) (719,156) (154,165) (100,223)
Transfer to Plan B (20,647,725) (49,771,601) (2,887,754) (13,031,525) (26,577,146) (7,967,404) (5,656,267)
Equity Transfer to Fund H (1,623,097)
Interfund transfers (1,014,817) 280,893 (203,870) (174,374) (417,029) 865,992 683,951
------------ ------------ ------------ ------------ ------------ ------------ -----------
Net changes in plan equity (21,205,849) (41,590,204) (2,441,819) (11,769,116) (23,179,940) (5,935,602) (3,973,594)
Plan equity at beginning of
period 32,228,183 79,232,406 5,944,760 18,946,130 38,901,690 9,586,154 6,935,275
------------ ------------ ------------ ------------ ------------ ------------ -----------
Plan equity at end of
period $ 11,022,334 37,642,202 3,502,941 7,177,014 15,721,750 3,650,552 2,961,681
============ ============ ============ ============ ============ ============ ===========
Fund H Loan Fund Total
------------ ------------ ------------
Net investment income:
Dividends 1,910,992
Interest 402,540 3,133,427
------------ ------------ ------------
Net investment income 402,540 5,044,419
Realized gains 1,165,752
Net change in unrealized
appreciation/(depreciation)
on investments (85,770) 2,660,667
Contributions:
Employer contributions 4,207,244
Employee contributions 11,193,716
------------ ------------ ------------
Total contributions 15,400,960
Participant loan repayments (2,731,853) 0
Distributions and other (18,152) 5,142 (4,760,324)
Plan Fees and Expenses (128,206)
Loans to participants (469) 3,766,181 0
Transfer to Plan B 61,549 (8,214,929) (134,692,802)
Equity Transfer to Fund H 1,623,097 0
Interfund transfers (21,632) 886 0
------------ ------------ ------------
Net changes in plan equity 1,558,623 (6,772,033) (115,309,534)
Plan equity at beginning of
period 0 12,971,823 204,746,421
------------ ------------ ------------
Plan equity at end of
period 1,558,623 6,199,790 89,436,887
============ ============ ============
See accompanying note to financial statements.
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Ryder System, Inc. Employee Savings Plan A
Statement of Income and Changes in Plan Equity, with Fund Information
For the Year Ended December 31, 1992
Fund A Fund B Fund C Fund D Fund E Fund F Fund G
------------ ------------ ------------ ----------- ------------ ------------ ------------
Net investment income:
Dividends $ 709,430 1,768,553 1,785,612 522,517 774,680
Interest 7,693 6,041,971 203,007 5,239 14,101 4,091 3,180
------------ ------------ ------------ ----------- ------------ ------------ ------------
Net investment income 717,123 6,041,971 203,007 1,773,792 1,799,713 526,608 777,860
Realized gains/(losses) 501,896 3,696 125,294 15,985 (11,203)
Net change in unrealized
appreciation/(depreciation)
on investments 8,164,538 228,966 1,570,611 1,018,016 (555,449)
Contributions:
Employer contributions 296,184 2,024,418 205,996 248,934 556,785 132,868 132,032
Employee contributions 2,070,474 10,835,266 1,165,468 2,273,185 5,266,153 1,473,662 1,348,957
------------ ------------ ------------ ----------- ------------ ------------ ------------
Total contributions 2,366,658 12,859,684 1,371,464 2,522,119 5,822,938 1,606,530 1,480,989
Participant loan repayments 574,762 2,716,768 299,825 530,388 1,177,743 272,016 287,161
Distributions and other (1,947,384) (6,101,957) (705,483) (1,113,263) (2,002,431) (470,969) (531,174)
Plan Fees and Expenses (54,114) (126,810) (17,670) (33,864) (57,985) (17,486) (16,191)
Loans to participants (898,715) (3,486,508) (341,921) (759,888) (1,624,379) (326,301) (322,593)
Interfund transfers (1,532,566) 512,683 (555,645) 428,001 826,648 490,497 (169,618)
------------ ------------ ------------ ----------- ------------ ------------ ------------
Net changes in plan equity 7,892,198 12,415,831 253,577 3,579,947 7,638,152 3,114,896 939,782
Plan equity at beginning of
period 24,335,985 66,816,575 5,691,183 15,366,183 31,263,538 6,471,258 5,995,493
------------ ------------ ------------ ----------- ------------ ------------ ------------
Plan equity at end of
period $ 32,228,183 79,232,406 5,944,760 18,946,130 38,901,690 9,586,154 6,935,275
============ ============ ============ =========== ============ ============ ============
Loan Fund Total
------------ ------------
Net investment income:
Dividends 5,560,792
Interest 875,466 7,154,748
------------ ------------
Net investment income 875,466 12,715,540
Realized gains/(losses) 635,668
Net change in unrealized
appreciation/(depreciation)
on investments 10,426,682
Contributions:
Employer contributions 3,597,217
Employee contributions 24,433,165
------------ ------------
Total contributions 28,030,382
Participant loan repayments (5,858,663)
Distributions and other (23,949) (12,896,610)
Plan Fees and Expenses (324,120)
Loans to participants 7,760,305
Interfund transfers
------------ ------------
Net changes in plan equity 2,753,159 38,587,542
Plan equity at beginning of
period 10,218,664 166,158,879
------------ ------------
Plan equity at end of
period 12,971,823 204,746,421
============ ============
See accompanying note to financial statements.
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Ryder System, Inc. Employee Savings Plan A
Statement of Income and Changes in Plan Equity, with Fund Information
For the Year Ended December 31, 1991
Fund A Fund B Fund C Fund D Fund E Fund F Fund G
------------ ------------ ------------ ------------ ------------ ------------ ------------
Net investment income:
Dividends $ 769,569 1,032,808 1,436,514 289,738 619,249
Interest 9,486 5,347,752 292,166 6,572 11,271 4,130 3,722
------------ ------------ ------------ ------------ ------------ ------------ ------------
Net investment income 779,055 5,347,752 292,166 1,039,380 1,447,785 293,868 622,971
Realized gains/(losses) 90,223 832 (18,617) 130,294 (19,352) (12,838)
Net change in unrealized
appreciation/(depreciation)
on investments 6,715,642 (579) 1,695,230 7,935,825 738,883 633,430
Contributions:
Employer contributions 231,277 2,041,977 250,475 225,985 266,097 74,962 52,712
Employee contributions 2,177,171 10,324,732 1,085,591 2,223,868 3,630,250 1,354,651 1,249,838
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total contributions 2,408,448 12,366,709 1,336,066 2,449,853 3,896,347 1,429,613 1,302,550
Participant loan repayments 474,105 1,995,410 207,883 398,244 685,986 171,707 166,796
Distributions and other (1,799,211) (5,592,865) (472,819) (1,013,355) (2,013,753) (403,952) (372,081)
Plan Fees and Expenses (49,629) (123,375) (17,399) (32,163) (48,736) (15,514) (14,440)
Loans to participants (729,562) (3,243,129) (326,551) (571,256) (1,133,564) (275,018) (235,380)
Interfund transfers (3,076,755) 732,417 (245,272) (328,169) 2,970,667 (71,612) 18,724
------------ ------------ ------------ ------------ ------------ ------------ ------------
Net changes in plan equity 4,812,316 11,483,172 774,074 3,619,147 13,870,851 1,848,623 2,109,732
Plan equity at beginning of
period 19,523,669 55,333,403 4,917,109 11,747,036 17,392,687 4,622,635 3,885,761
------------ ------------ ------------ ------------ ------------ ------------ ------------
Plan equity at end of
period $ 24,335,985 66,816,575 5,691,183 15,366,183 31,263,538 6,471,258 5,995,493
============ ============ ============ =========== =========== =========== ===========
Loan Fund Total
------------ ------------
Net investment income:
Dividends 4,147,878
Interest 713,098 6,388,197
------------ ------------
Net investment income 713,098 10,536,075
Realized gains/(losses) 170,542
Net change in unrealized
appreciation/(depreciation)
on investments 17,718,431
Contributions:
Employer contributions 3,143,485
Employee contributions 22,046,101
------------ ------------
Total contributions 25,189,586
Participant loan repayments (4,100,131)
Distributions and other (83,316) (11,751,352)
Plan Fees and Expenses (301,256)
Loans to participants 6,514,460
Interfund transfers
------------ ------------
Net changes in plan equity 3,044,111 41,562,026
Plan equity at beginning of
period 7,174,553 124,596,853
------------ ------------
Plan equity at end of
period 10,218,664 166,158,879
============ ============
See accompanying note to financial statements.
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RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN A
NOTE TO FINANCIAL STATEMENTS
DECEMBER 31, 1993
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER MATTERS
a. BASIS OF ACCOUNTING
The financial statements of the Ryder System, Inc. Employee Savings Plan A
(the "Plan") are prepared on the accrual basis of accounting. Plan
assets, except for participant loan receivables and group annuity
insurance contracts which are valued at contract value, are stated at
market value (quoted market prices) as determined by the Plan's trustee.
Purchases and sales of securities are recorded on a trade date basis.
Cost is determined based on historical average cost.
b. THE PLAN
The following description of the Plan reflects all plan amendments through
December 31, 1993, and is provided for general purposes only. As of
January 1, 1993, active salaried employees and active employees, whether
salaried or hourly, of the Aviation Services Division were excluded from
participation in the Ryder System, Inc. Employee Savings Plan A. Such
employees and their participating account balances were transferred to the
Ryder System, Inc. Employee Savings Plan B.
Participants should refer to the Plan document for more complete
information. The Plan is a defined contribution plan and, as such, is
subject to some, but not all, of the provisions of the Employee Retirement
Income Security Act of 1974 ("ERISA"). It is excluded from coverage under
Title IV of ERISA, which generally provides for guaranty and insurance of
retirement benefits; and it is not subject to the funding requirements of
Title I of ERISA. The Plan is, however, subject to those provisions of
Title I and II of ERISA which, among other things, require that each
participant be furnished with an annual financial report and a
comprehensive description of the participant's rights under the Plan, set
minimum standards of responsibility applicable to fiduciaries of the Plan,
and establish minimum standards for participation and vesting.
Participation in the Plan is voluntary. However, to participate in the
Plan, an employee must meet certain eligibility requirements related to
employment date, age and service hours. In general, non-salaried
employees of the Company and participating affiliates are eligible to
participate in the Plan, however, an employee who is in a unit of
employees represented by a collective bargaining agent is excluded from
participation in the Plan unless the unit has negotiated coverage under
the Plan. In addition, employees eligible to participate under another
Company sponsored qualified savings plan will be excluded from
participation in the Plan.
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The number of participants' accounts in each of the funds at December 31,
1993 was as follows:
Fund A - 4,572
Fund B - 7,753
Fund C - 1,589
Fund D - 2,413
Fund E - 3,607
Fund F - 1,564
Fund G - 1,199
Fund H - 4,542
Loans - 1,937
c. PLAN INVESTMENT FUNDS
The Plan's trustee, Bankers Trust Company, maintains Plan assets in
separate investment funds. Participants may elect to contribute to, or
transfer among, any of the funds. Earnings are allocated monthly based on
units of investment.
Investment Fund A ("Fund A") - Company Stock Fund: Fund A is invested in
Ryder System, Inc. common stock, which is purchased on a regular and
continuous basis. Dividends are automatically reinvested in the common
stock.
Investment Fund B ("Fund B") - Interest Income Fund previously called
Guaranteed Investment Contract: Fund B consists of funding accounts
established by contracts with various insurance companies. Participants'
accounts are credited with interest based on a pooling of the returns of
the various funding accounts. Funding accounts generally continue for a
period of two to five years after their inception. During 1993, 1992 and
1991, the yield on open funding contracts ranged from 4.89% to 9.3%, 6.4%
to 9.3% and 7.5% to 9.3%, respectively.
Investment Fund C ("Fund C") - Ryder Money Market Fund: Fund C consists of
a funding account established with the Ryder System Federal Credit Union.
Investment Fund D ("Fund D") - Conservative Growth Fund: Fund D may
normally be invested in a variety of common, preferred or capital stocks,
but may include investments in bonds or securities convertible into common
or capital stocks, similar types of equity investments and bonds. Since
Plan inception, this fund has been invested solely in shares of the Lord,
Abbett Affiliated Fund.
Investment Fund E ("Fund E") - Aggressive Growth Fund: Fund E may be
invested primarily in common or capital stocks, though it may invest in
other types of securities, including convertible bonds, convertible
preferred stock, warrants, preferred stock or debt securities. Since Plan
inception, this fund has been invested solely in shares of the Putnam
Voyager Fund.
Investment Fund F ("Fund F") - Mutual Series Fund: Fund F may be invested
in securities issued by U.S. based companies that are selling below book
value. Up to 50% of the
11
fund's portfolio may consist of securities of companies involved in
prospective mergers, consolidations, liquidations and reorganizations.
The fund may also engage in covered call option writing. The primary
objective of the fund is capital appreciation and not necessarily the
attainment of a balanced investment program. Since 1989, following
adoption by the Plan, this fund has been invested solely in shares of the
Mutual Series Fund, Inc., Qualified Income Fund.
Investment Fund G ("Fund G") - Templeton World Fund: Fund G may be
invested in all types of securities, including stocks and debt
securities of companies and governments of all nations. The fund's
investment objective is long-term capital growth. Since 1989, following
adoption by the Plan, this fund has been invested solely in shares of
the Templeton World Fund.
Investment Fund H ("Fund H") - Aviall Common Stock Fund: Fund H is
invested in Aviall, Inc. Common stock and is a frozen fund. Participants
cannot contribute to nor transfer into that fund. Participants can
transfer assets from Fund H to any other investment fund of the Plan.
Monies remaining in that fund at December 31, 1995 will be liquidated and
reinvested in Fund A.
d. CONTRIBUTIONS
Participants may elect to contribute to the Plan by having their
compensation reduced by a minimum of 1% of compensation up to a maximum of
the lesser of a) 10% or 15% of compensation, depending on an individual's
annual salary level, b) $8,994, or c) such other amount as shall be
determined by the Company's Retirement Committee from time to time. The
Company matches 50% of the employee's annual contribution up to $200 or
$400 per person based on certain requirements. Some eligible employees
receive Company contributions that include $400 of basic contribution,
plus 100% match to the first $300 of employee contribution and 50% match
to the next $400 of employee contribution. Effective January 1, 1992,
certain eligible employees do not receive a Company contribution.
Participants are immediately 100% vested in the earnings of their
individual contributions to the Plan and vest 25% per year in the Company
contributions and the earnings attributable to such contributions. Upon
participant's distribution, related, non-vested Company contributions are
forfeited and are used to offset future Company contributions.
e. DISTRIBUTIONS
On termination of service, if a participant's account balance is greater
than $3,500, a participant's account is distributed to the participant in
the form of a single lump-sum payment upon receipt of participant's
consent. Terminated participants whose account balance is less than
$3,500 receive automatic distributions.
f. WITHDRAWALS
A participant may request a withdrawal of all or a portion of his elective
contribution account balance if he can demonstrate financial hardship.
The Plan Administrator
12
must approve the request, and the amount withdrawn cannot be subsequently
repaid to the Plan. Such amounts will be considered distributions to the
participant for tax purposes.
g. DISTRIBUTIONS TO OTHER PLAN
On December 7, 1993, Ryder System, Inc. completed the spin-off of its
Aviation Division, Aviall, Inc. ("Aviall"). Under the terms of the
spin-off, the Company distributed to its holders of common stock one
share of Aviall common stock for each four shares of Ryder System, Inc.
common stock held. Participants in the Plan who were invested in the
Ryder System, Inc. common stock fund on this date received the equivalent
of one share of Aviall common stock for each four shares of Ryder System,
Inc. common stock held. As a result of the spin-off a new "Fund H" was
created. The investment fund balances of Aviall employees in the Plan at
December 7, 1993, were transferred to a newly established plan for
employees of Aviall.
h. PARTICIPANT LOANS
Plan participants are able to request loans against their Plan account
balances subject to certain limitations as to amount and repayment term.
Loans accrue interest at a rate which is comparable to those of most major
lending institutions and all principal and interest payments are
allocated to the Plan's investment funds based on the participant's
investment elections at the time of payment. Loans which are granted
and repaid in compliance with the Plan provisions will not be considered
distributions to the participant for tax purposes.
i. TERMINATION
While it has not expressed any intention to do so, the Company may amend
or terminate the Plan at any time. In the event of termination, Plan
assets are payable to each participant in a lump sum equal to the balance
in the participant's account.
j. FEDERAL INCOME TAX EFFECTS OF THE PLAN
The Plan qualifies as a profit sharing plan under Section 401(a) of the
Internal Revenue Code of 1986, as amended, (the "Code") and also
qualifies as a cash or deferred arrangement under Section 401(k) of the
Code and, therefore, is exempt from federal income taxes under Section
501(a) of the Code. The last favorable tax determination letter obtained
was dated August 21, 1986.
Under a plan qualified pursuant to Sections 401(a) and (k) of the Code,
participants generally will not be taxed on contributions or matching
contributions, or earnings thereon, until such amounts are distributed to
participants or their beneficiaries under the Plan. The tax-deferred
contributions and matching contributions are deductible by the Company for
tax purposes when those contributions are made, subject to certain
limitations set forth in Section 404 of the Code.
Participants or their beneficiaries generally will be taxed, at ordinary
income rates, on the amount they receive as a distribution from the Plan at
the time they receive the distribution. However, if the participant or
beneficiary receives a lump sum payment of the balance under the Plan in a
single taxable year, and the distribution
13
is made by reason of death, disability or termination of employment of
the participant, or after the participant has attained age 59 1/2, then
certain special tax rules may be applicable.
k. PLAN FEES AND EXPENSES
All commissions, brokerage fees and expenses incident to the income or
assets of the trust, the purchase or sale of securities by the trustee and
distribution to participants are paid by the Plan. Trustee and basic
recordkeeping fees are paid by the Plan. All other expenses of the Plan
are paid by the Company.
l. NET REALIZED GAINS OR LOSSES
Net realized gains or losses on investments covering the last three years
are as follows:
AT DECEMBER 31, 1993:
NET
AGGREGATE AGGREGATE REALIZED
PROCEEDS COST GAIN
-------------- ------------- ------------
Fund A $ 2,677,817 2,243,442 434,375
Fund D 1,711,091 1,679,440 31,651
Fund E 3,473,588 2,974,994 498,594
Fund F 1,572,016 1,388,091 183,925
Fund G 925,010 907,803 17,207
-------------- ------------- ------------
$ 10,359,522 9,193,770 1,165,752
============== ============= ============
AT DECEMBER 31, 1992:
NET
AGGREGATE AGGREGATE REALIZED
PROCEEDS COST GAIN/(LOSS)
-------------- ------------- ------------
Fund A $ 8,875,863 8,373,967 501,896
Fund D 3,019,097 3,015,401 3,696
Fund E 9,159,810 9,034,516 125,294
Fund F 2,667,113 2,651,128 15,985
Fund G 2,109,251 2,120,454 (11,203)
-------------- ------------- ------------
$ 25,831,134 25,195,466 635,668
============== ============= ============
14
AT DECEMBER 31, 1991:
NET
AGGREGATE AGGREGATE REALIZED
PROCEEDS COST GAIN/(LOSS)
-------------- ------------- ------------
Fund A $ 11,051,497 10,623,900 427,597
Fund B 1,228,300 1,205,892 22,408
Fund D 3,404,156 3,455,624 (51,468)
Fund E 5,950,287 5,917,527 32,760
Fund F 6,453,255 6,515,076 (61,821)
Fund G 4,345,112 4,388,746 (43,634)
-------------- ------------- ------------
$ 32,432,607 32,106,765 325,842
============== ============= ============
m. SUBSEQUENT EVENTS
The change in net unrealized gains or losses arising in the various funds
of the Plan after December 31, 1993 and prior to June 1, 1994 are as
follows:
UNREALIZED UNREALIZED NET CHANGE IN
GAINS/(LOSSES) GAINS/(LOSSES) UNREALIZED
AT DECEMBER 31, 1993 AT MAY 31, 1994 GAINS/(LOSSES)
-------------------- --------------- --------------
Fund A 740,128 (1,247,016) (1,987,144)
Fund B 0 0 0
Fund C 0 0 0
Fund D 185,220 236,900 51,680
Fund E 1,354,915 3,668,019 2,313,104
Fund F 102,716 387,753 285,037
Fund G 363,458 227,042 (136,416)
Fund H (85,770) (160,190) (74,420)
Loan Fund 0 0 0
15
Ryder System, Inc. Employee Savings Plan A Schedule I
Schedule of Investments
Number of
Shares, Units Unrealized
or Principal Market Appreciation
Amounts Cost Value (Depreciation)
------------ ------------ ------------ --------------
At December 31, 1993:
Directed Account Short-Term
Investment Fund 286,592 $ 286,592 286,592
Fund A 418,321 11,443,532 11,019,753 (423,779)
Fund B 37,992,114 37,992,114 37,992,114
Fund C 3,550,153 3,550,153 3,550,153
Fund D 672,231 6,789,374 7,172,703 383,329
Fund E 1,312,298 10,867,736 15,734,448 4,866,712
Fund F 134,799 3,238,287 3,639,562 401,275
Fund G 183,249 2,695,997 2,878,836 182,839
Fund H 105,127 1,688,959 1,603,189 (85,770)
Loan Fund 6,093,261 6,093,261
------------ ------------ -----------
$ 84,646,006 89,970,611 5,324,605
------------ ------------ -----------
At December 31, 1992:
Directed Account Short-Term
Investment Fund (Net of amounts
transferred to Plan B) 395,268 $ 395,268 395,268
Fund A 448,434 13,495,838 12,331,930 (1,163,907)
Fund B 30,900,640 30,900,640 30,900,640
Fund C 3,334,373 3,334,373 3,334,373
Fund D 609,271 6,059,100 6,257,209 198,109
Fund E 1,256,709 9,708,780 13,220,577 3,511,797
Fund F 107,273 2,322,130 2,620,689 298,559
Fund G 159,201 2,259,786 2,079,167 (180,619)
Loan Fund 5,784,734 5,784,734 5,784,734
------------ ------------ -----------
$ 74,260,649 76,924,587 2,663,938
------------ ------------ -----------
Net appreciation included in
statement of income and
changes in plan equity $ 2,660,667
===========
16
Schedule II
Ryder System, Inc. Employee Savings Plan A
Schedule of Reportable Transactions
For the Year Ended December 31, 1993
Market
Proceeds Value
-------- ------
Employee contributions to
Fund B: Interest Income Fund $5,611,608
Transfer of assets to Plan B
(see note to financial statements 1(b)) $134,692,802
17
Independent Auditors' Consent
The Participants and Administrator
Ryder System, Inc. Employee Savings Plan A:
We consent to incorporation by reference in the Registration Statement
(No. 33-4333) on Form S-8 of Ryder System, Inc. covering the Ryder System, Inc.
Employee Savings Plan A, of our report dated June 29, 1994, relating to the
statements of financial position with fund information of the Ryder System,
Inc. Employee Savings Plan A as of December 31, 1993 and 1992 and the related
statements of income and changes in plan equity with fund information for each
of the years in the three-year period ended December 31, 1993 and related
schedules of investments as of December 31, 1993 and 1992 for each of the years
in the three-year period ended December 31, 1993 and schedule of reportable
transactions for the year ended December 31, 1993, which report appears in the
December 31, 1993 annual report on Form 11-K of the Ryder System, Inc.
Employee Savings Plan A filed by Ryder System, Inc.
KPMG PEAT MARWICK
June 29, 1994
18
REQUIRED INFORMATION
Financial Statements
Independent Auditors' Report
Statements of Financial Position, with Fund Information
as of December 31, 1993 and 1992
Statements of Income & Changes in Plan Equity, with Fund
Information for the years ending December 31, 1993,
1992 and 1991
Notes to Financial Statements
Exhibits
Schedule I - Schedule of Investments
as of December 1993 and 1992
Schedule II - Schedule of Reportable Transactions
Independent Auditors' Consent
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Ryder
System, Inc. Employee Savings Plan Committee has duly caused this annual report
to be signed by the undersigned thereunto duly authorized.
RYDER SYSTEM, INC. EMPLOYEE SAVINGS PLAN A
Date: June 29, 1994 By: C. ROBERT CAMPBELL
-------------------------------
C. Robert Campbell
Chairman, Ryder System, Inc.
Employee Savings Plan Committee
Executive Vice President,
Human Resources and Administration
Ryder System, Inc.