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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, 1995
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 #________
RYDER SYSTEM, INC. SAVINGS RESTORATION PLAN
Ryder System, Inc.
3600 N.W. 82 Avenue
Miami, Florida 33166
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Independent Auditors' Report
The Participants and Administrator
Ryder System, Inc. Savings Restoration Plan
We have audited the accompanying statements of financial position of Ryder
System, Inc. Savings Restoration Plan as of December 31, 1995, and the
related statement of income and changes in plan equity for the period from
April 1, 1995 (Date of Inception) to December 31, 1995. 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 audit.
We conducted our audit 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 audit provides 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, 1995 and the changes in net assets available for benefits for the
period from April 1, 1995 (Date of Inception) to December 31, 1995, in
conformity with generally accepted accounting principles.
/s/ KPMG PEAT MARWICK LLP
Miami, Florida
June 14, 1996
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Ryder System, Inc. Savings Restoration Plan
Statement of Financial Position
December 31, 1995
ASSETS
Receivable from Ryder System, Inc. (cost, $1,327,738) $1,406,232
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Total assets $1,406,232
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LIABILITIES AND PLAN EQUITY
Plan equity $1,406,232
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Total liabilities and plan equity $1,406,232
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See accompanying notes to financial statements.
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RYDER SYSTEM, INC. SAVINGS RESTORATION PLAN
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
FOR THE PERIOD FROM APRIL 1, 1995 (DATE OF INCEPTION) TO DECEMBER 31, 1995
Increase in receivable from
Ryder System, Inc. attributable to:
Net change in unrealized appreciation
on notional investments 78,494
Contributions:
Employer contributions 171,760
Employee contributions 1,155,978
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Total contributions 1,327,738
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Net increase in plan equity 1,406,232
Plan equity at date of inception 0
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Plan equity at end of period $1,406,232
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See accompanying notes to financial statements.
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RYDER SYSTEM, INC. SAVINGS RESTORATION PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER MATTERS
A. BASIS OF ACCOUNTING
The financial statements of the Ryder System, Inc. Savings Restoration
Plan (the "Plan") are prepared on the accrual basis of accounting.
B. USE OF ESTIMATES
The Plan administrator has made a number of estimates and assumptions
relating to the reporting of assets and liabilities and the disclosure of
contingent assets and liabilities to prepare these financial statements in
conformity with generally accepted accounting principles. Actual results
could differ from those estimates.
2. THE PLAN
The following description of the Plan reflects all Plan amendments through
December 31, 1995, and is provided for general purposes only. The Plan
was adopted effective April 1, 1995. The Plan allows certain employees of
Ryder System, Inc. (the "Company") who participate in either Ryder System,
Inc. Employee Savings Plan A or B (the "Savings Plan") to receive
contributions equal to amounts in excess of certain limitations on
contributions imposed by the Internal Revenue Code of 1986 (the "Code"),
as amended.
The Plan is unfunded and is intended to be exempt from the participation,
vesting, funding, and fiduciary requirements of Title I of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), but is
subject to certain reporting and disclosure requirements under ERISA.
Further, benefits under the Plan are not guaranteed under Title IV of
ERISA.
The right of a participant or his designated beneficiary to receive a
distribution under the Plan will be an unsecured claim against the general
assets of the Company, and neither the participant nor a designated
beneficiary will have any rights in or against any specific assets of the
Company. All amounts credited to a participant's account will constitute
general assets of the Company and may be disposed of by the Company at
such time and for such purposes as it may deem appropriate.
Participation in the Plan is voluntary. To participate in the Plan, an
employee must (i) be a participant in the Savings Plan, (ii) be part of a
select group of management or highly compensated employees within the
meaning of Sections 201(2), 301(a)(3) and 401 (a)(1) of ERISA, and (iii)
be an eligible employee of the Company whose tax-deferred contributions
or Company matching contributions under the Savings
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Plan are limited by reason of limitations imposed by Sections 402(g), 415
or 401(a)(17) of the Code.
3. PLAN ASSETS
The Plan has a receivable from the Company in which the cost basis is
equal to the deferral of participants' compensation and the related
company matching contributions. The market value of the receivable is
indexed to the market performance of the participants' elections among
the notional investment funds made available under the Plan less
administrative expenses, if any. The distribution of participants'
accounts based on their notional fund elections as of December 31, 1995
is as follows:
Fund A - 23
Fund B - 38
Fund C - 41
Fund D - 67
Fund E - 63
Fund F - 37
Participants may elect to contribute to, or transfer among, any of the
notional funds. Participants may change notional investment options on a
daily basis. Earnings are allocated daily based on units of notional
investment.
Notional Investment Fund A ("Fund A") -- 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.
Notional Investment Fund B ("Fund B") -- Fund B is comprised of high
quality investments including corporate notes, bonds and similar debt
instruments, commercial paper, time deposits, certificates of deposit,
bankers acceptances, repurchase agreements, variable and indexed interest
notes, and obligations of US government agencies.
Notional Investment Fund C ("Fund C") -- Fund C 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.
Notional Investment Fund D ("Fund D") -- Fund D 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.
Notional Investment Fund E ("Fund E") -- Fund E may be invested in
securities issued by US based companies that are selling below book value.
Up to 50% of the
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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 Plan inception, this
fund has been invested solely in shares of the Mutual Series Fund, Inc.,
Qualified Income Fund.
Notional Investment Fund F ("Fund F") -- Fund F may be invested in all
types of securities. The fund invests primarily in common stock of
companies outside the United States. The fund maintains a flexible
investment policy and can invest in all types of securities in any foreign
country, developed or undeveloped. The fund's investment objective is
long-term capital growth. Since Plan inception, this fund has been
invested solely in shares of the Templeton Foreign Fund.
The 1995 performance of participant's notional investment funds is as
follows:
Fund A 4.57%
Fund B 3.92%
Fund C 15.75%
Fund D 25.68%
Fund E 12.02%
Fund F 4.95%
4. CONTRIBUTIONS
Participants may elect to defer compensation by an amount equal to the
excess of (i) a minimum of 1% and a maximum of 10% of compensation, over
(ii) the amount of their tax-deferred contributions under the Savings Plan
for the Plan year, after taking into account Savings Plan limitations. In
no event shall any amounts be deferred under the Plan for any Plan year
until the participant's tax deferred contributions under the Savings Plan
have reached the Savings Plan limitation for the Plan year. Compensation
deferral agreements are effective on a Plan year basis, and must be filed
before the beginning of the Plan year. The Company matches 50% of employee
contributions up to 3% of compensation, offset by any Company match
received during the Plan year in the Savings Plan. Participants are fully
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.
5. DISTRIBUTIONS
The vested portion of a participant's account, less any applicable
withholding, shall be distributed at the participant's election, subject
to the limitations described in Note 2, as either a) a lump sum or b) up
to ten annual installments. Distributions shall be paid on the January
1 immediately following a participant's separation from employment, or as
soon as administratively practical thereafter.
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6. 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 Committee appointed by the Board of Directors to administer the Plan
(the "Committee") must approve the request, and the amount withdrawn
cannot be subsequently repaid to the Company. Such amounts will be
considered distributions to the participant for tax purposes.
7. PARTICIPANT LOANS
Participants are not permitted under the Plan to borrow from the Company
any portion of the amount credited to their participant's account under the
Plan.
8. 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 Plan termination, Plan
assets are payable to each participant on the January 1 immediately
following a participant's separation from employment in accordance with
the participant's most recent participant election and enrollment form
which is effective at least one year prior to the date of separation of
employment. No additional credits of contributions shall be made to the
participant's account for periods after termination of the Plan, but the
Committee shall continue to credit gains and losses to the participant's
account, until the balance has been fully distributed.
9. FEDERAL INCOME TAX EFFECTS OF THE PLAN
A participant generally will not be taxed on the tax-deferred
contributions or the Company matching contributions to the Savings
Restoration Plan, or earnings thereon, allocable to his participant's
account until such amounts are distributed to the participant or his
beneficiary under the Plan. The value of the participant's account,
including any earnings, are deductible by the Company for federal tax
purposes in the year in which those amounts become taxable to the
participant or his beneficiary.
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. Since the Plan is not qualified
under Section 401(a) of the Code, distributions from the Plan will not
qualify for any of the favorable tax rulings applicable to qualified tax
distributions, such as tax-deferred rollovers of five year averaging. On
the other hand, distributions from the Plan will not be subject to various
excise taxes applicable to qualified plan distributions, such as 10%
excise tax on distribution prior to age 59 1/2, or the 15% excise tax on
excess benefit payments.
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An employee's tax-deferred contributions to the Plan are subject to
federal Social Security and Medicare taxes and federal unemployment taxes
when earned, and Company matching contributions, and any earnings thereon
prior to the time such amounts become vested, are subject to those taxes
as and when they become vested.
10. PLAN FEES AND EXPENSES
Although all expenses of administration relating to the Plan may be
charged against a participant's account, at the present time, the Company
has elected to pay all administrative and marketing expenses.
11. SUBSEQUENT EVENTS
The change in net unrealized gains or losses arising in the various
notional investment funds of the Plan after December 31, 1995 and prior
to May 1, 1996 are as follows:
UNREALIZED UNREALIZED NET CHANGE IN
APPRECIATION APPRECIATION UNREALIZED
AT DECEMBER 31, 1995 AT APRIL 30, 1996 APPRECIATION
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$78,494 145,826 67,332
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Independent Auditors' Consent
The Participants and Administrator
Ryder System, Inc. Savings Restoration Plan:
We consent to incorporation by reference in the Registration Statement (No.
33-58045) on Form S-8 of Ryder System, Inc. covering the Ryder System, Inc.
Savings Restoration Plan, of our report dated June 14, 1996, relating to the
statement of financial position of the Ryder System, Inc. Savings Restoration
Plan as of December 31, 1995, and the related statement of income and changes
in plan equity for the period from April 1, 1995 (Date of Inception) to
December 31, 1995, which report appears in the December 31, 1995 annual report
on Form 11-K of the Ryder System, Inc. Savings Restoration Plan filed by Ryder
System, Inc.
/s/ KPMG PEAT MARWICK LLP
Miami, Florida
June 27, 1996
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REQUIRED INFORMATION
Financial Statements
Independent Auditors' Report
Statement of Financial Position as of December 31, 1995
Statement of Income & Changes in Plan Equity, for the period from
April 1, 1995 (Date of Inception) to December 31, 1995
Notes to Financial Statements
Exhibits
Independent Auditors' Consent
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Ryder
System, Inc. Retirement Committee has duly caused this annual report to be
signed by the undersigned thereunto duly authorized.
RYDER SYSTEM, INC. SAVINGS RESTORATION PLAN
Date: July 2, 1996 By: /s/ J. Ernest Riddle
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J. Ernest Riddle
Member - Retirement Committee
President - International Division