SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
X ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
--- SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1999
or
--- TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from _____ to _____
_______________
SALARY DEFERRAL SAVINGS PLAN OF ENGELHARD CORPORATION
-----------------------------------------------------
(Full title of the plan)
ENGELHARD CORPORATION
(Exact name of issuer as specified in its charter)
101 WOOD AVENUE, ISELIN, NEW JERSEY 08830
- ----------------------------------- ---------
(Address of principal executive offices) (Zip code)
DELAWARE 22-1586002
- ------------------------------- ----------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
1
Salary Deferral Savings Plan
of Engelhard Corporation
Table of Contents
Description Page
----------- ----
Report of Independent Accountants 3-4
Statements of Financial Condition 5-10
at December 31, 1999 and 1998
Statements of Income and Changes in Plan Equity 11-19
for each of the three years in the period
ended December 31, 1999
Notes to Financial Statements 20-29
Supplemental Schedule
Schedule of Investments at December 31, 1999 and 1998 30-31
Consent of Independent Public Accountants 32-33
2
Report of Independent Accountants
---------------------------------
To the Pension and Employee Benefit Committee of Engelhard Corporation:
We have audited the accompanying Statement of Financial Condition of the
Salary Deferral Savings Plan of Engelhard Corporation (the "Plan") as of
December 31, 1999 and the related Statement of Income and Changes in Plan Equity
for the year ended December 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 audit.
We conducted our audit 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 audit provides 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 the Plan as of December 31,
1999, and the income and changes in plan equity for the year ended December 31,
1999, in conformity with accounting principles generally accepted in the United
States.
Our audit was made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental Schedule of Investments
is presented for purposes of additional analysis and is not a required part of
the basic financial statements but is 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 supplemental
schedule is the responsibility of the Plan's management. The supplemental
schedule has been subjected to the auditing procedures applied in the audit of
the basic financial statements and, in our opinion, is fairly stated in all
material respects in relation to the basic financial statements taken as a
whole.
ARTHUR ANDERSEN LLP
New York, New York
June 20, 2000
3
Report of Independent Accountants
---------------------------------
To the Pension and Employee Benefit Plans Committee of Engelhard Corporation:
In our opinion, the Statement of Financial Condition as of December 31,
1998 and the related Statements of Income and Changes in Plan Equity for each of
the two years in the period ended December 31, 1998 listed on the Table of
Contents on page 2 of this Form 11-K present fairly, in all material respects,
the financial condition and the income and changes in plan equity of the Salary
Deferral Savings Plan of Engelhard Corporation at December 31, 1998 and for each
of the two years in the period ended December 31, 1998, in conformity with
accounting principles generally accepted in the United States. 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 of these statements in accordance with auditing standards
generally accepted in the United States, which 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,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for the opinion expressed
above.
Our audits were performed for the purpose of forming an opinion on the
basic financial statements taken as a whole. The supplemental schedule listed in
the Table of Contents on page 2 of this Form 11-K is presented for the purpose
of additional analysis and is not a required part of the basic financial
statements but is 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. This supplemental schedule is the
responsibility of the Plan's management. The supplemental schedule as of
December 31, 1998 has been subjected to the auditing procedures applied in the
audits of the basic financial statements and, in our opinion, is fairly stated
in all material respects in relation to the basic financial statements taken as
a whole.
We have not audited the financial statements and the supplemental schedule
of the Salary Deferral Savings Plan of Engelhard Corporation for any period
subsequent to December 31, 1998.
PRICEWATEHOUSECOOPERS
New York, New York
June 18, 2000
4
Salary Deferral Savings Plan
of Engelhard Corporation
Statement of Financial Condition
at December 31, 1999
(Page 1 of 3)
Company Fixed Windsor II Windsor Equity
Stock Income Growth Growth Balanced Index
Fund Fund Fund Fund Fund Fund
----------- ----------- ------------ ----------- ----------- -----------
Assets:
Investments, at fair value
(combined cost of $165,596,502) $46,599,093 $29,270,606 $4,554,032 $25,595,624 $15,147,280 $25,078,115
Contributions Receivable:
Participants 125,811 107,080 46,547 124,191 76,662 119,452
Engelhard Corporation 259,088 - - - - -
Promissory notes from participants - - - - - -
----------- ----------- ----------- ----------- ---------- ----------
Total assets $46,983,992 $29,377,686 $4,600,579 $25,719,815 $15,223,942 $25,197,567
=========== =========== =========== =========== =========== ===========
Plan equity:
Plan equity $46,983,992 $29,377,686 $4,600,579 $25,719,815 $15,223,942 $25,197,567
=========== =========== =========== =========== =========== ===========
See Accompanying Notes to Financial Statements
5
Salary Deferral Savings Plan
of Engelhard Corporation
Statement of Financial Condition
at December 31, 1999
(Page 2 of 3)
Life Life
International Small Short-Term Prime Strategy Strategy
Growth Cap Bond Cap Growth Income
Fund Fund Fund Fund Fund Fund
------------- ---------- ---------- --------- --------- ----------
Assets:
Investments, at fair value
(combined cost of $165,596,502) $4,347,535 $3,406,357 $1,821,626 $9,685,868 $3,449,469 $505,578
Contributions receivable:
Participants 28,322 20,258 11,986 61,337 46,688 4,388
Engelhard Corporation - - - - - -
Promissory notes from participants - - - - - -
---------- ---------- ---------- ---------- ---------- --------
Total assets $4,375,857 $3,426,615 $1,833,612 $9,747,205 $3,496,157 $509,966
========== ========== ========== ========== ========== ========
Plan equity:
Plan equity $4,375,857 $3,426,615 $1,833,612 $9,747,205 $3,496,157 $509,966
========== ========== ========== ========== ========== ========
See Accompanying Notes to Financial Statements
6
Salary Deferral Savings Plan
of Engelhard Corporation
Statement of Financial Condition
at December 31, 1999
(Page 3 of 3)
Life Strategy Vanguard Life Strategy
Conservative U.S. Moderate
Growth Growth Growth Loan
Fund Fund Fund Fund Combined
------------- ---------- ------------- ---------- ------------
Assets:
Investments, at fair value
(combined cost of 165,596,502) $1,131,393 $11,462,671 $2,889,310 $ - $184,944,557
Contributions receivable:
Participants 6,830 83,031 24,646 - 887,229
Engelhard Corporation - - - - 259,088
Promissory notes from participants - - - 8,362,942 8,362,942
---------- ----------- ---------- ---------- ------------
Total assets $1,138,223 $11,545,702 $2,913,956 $8,362,942 $194,453,816
========== =========== ========== ========== ============
Plan equity:
Plan equity $1,138,223 $11,545,702 $2,913,956 $8,362,942 $194,453,816
========== =========== ========== ========== ============
See Accompanying Notes to Financial Statements
7
Salary Deferral Savings Plan
of Engelhard Corporation
Statement of Financial Condition
at December 31, 1998
(Page 1 of 3)
Company Fixed Windsor Windsor II Equity
Stock Income Growth Growth Balanced Index
Fund Fund Fund Fund Fund Fund
----------- ----------- ------------ ----------- ----------- -----------
Assets:
Investments, at fair value
(combined cost of $142,886,268) $45,391,121 $27,603,965 $26,638,674 $4,907,253 $14,624,519 $18,577,286
Contributions Receivable:
Participants 148,215 115,885 152,035 50,738 84,517 117,023
Engelhard Corporation 264,995 - - - - -
Promissory notes from participants 64,354 38,946 37,640 6,966 20,666 26,265
----------- ----------- ----------- ---------- ---------- ----------
Total assets $45,868,685 $27,758,796 $26,828,349 $4,964,957 $14,729,702 $18,720,574
=========== =========== =========== ========== =========== ===========
Plan equity:
Plan equity $45,868,685 $27,758,796 $26,828,349 $4,964,957 $14,729,702 $18,720,574
=========== =========== =========== =========== =========== ===========
See Accompanying Notes to Financial Statements
8
Salary Deferral Savings Plan
of Engelhard Corporation
Statement of Financial Condition
at December 31, 1998
(Page 2 of 3)
Life Life
International Small Short-Term Prime Strategy Strategy
Growth Cap Bond Cap Growth Income
Fund Fund Fund Fund Fund Fund
------------- ---------- ---------- ------ --------- ----------
Assets:
Investments, at fair value
(combined cost of $142,886,286) $3,521,901 $2,894,830 $2,047,021 $2,589,252 $2,060,528 $483,341
Contributions receivable:
Participants 28,877 24,964 14,792 29,990 35,867 3,172
Engelhard Corporation - - - - - -
Promissory notes from participants 4,989 4,102 2,897 3,680 2,945 684
---------- --------- -------- ---------- -------- --------
Total assets $3,555,767 $2,923,896 $2,064,710 $2,622,922 $2,099,340 $487,197
========== ========== ======== ========== ========== ========
Plan equity:
Plan equity $3,555,767 $2,923,896 $2,064,710 $2,622,922 $2,099,340 $487,197
========== ========== ========== ========== ========== ========
See Accompanying Notes to Financial Statements
9
Salary Deferral Savings Plan
of Engelhard Corporation
Statement of Financial Condition
at December 31, 1998
(Page 3 of 3)
Life Strategy Vanguard Life Strategy
Conservative U.S. Moderate
Growth Growth Growth Loan
Fund Fund Fund Fund Combined
------------- ---------- ------------- --------- ------------
Assets:
Investments, at fair value
(combined cost of 142,886,268) $891,549 $6,325,365 $1,649,482 $ - $160,206,087
Contributions receivable:
Participants 10,265 66,474 23,419 - 906,233
Engelhard Corporation - - - - 264,995
Promissory notes from participants 1,267 8,980 2,350 7,493,128 7,719,859
-------- ---------- ---------- ---------- ------------
Total assets $903,081 $6,400,819 $1,675,251 $7,493,128 $169,097,174
======== ========== ========== ========== ============
Plan equity:
Plan equity $903,081 $6,400,819 $1,675,251 $7,493,128 $169,097,174
======== ========== ========== ========== ============
See Accompanying Notes to Financial Statements
10
Salary Deferral Savings Plan
of Engelhard Corporation
Statement of Income and Changes in Plan Equity
for the Year Ended December 31, 1999
(Page 1 of 3)
Company Fixed Windsor II Windsor Equity
Stock Income Growth Growth Balanced Index
Fund Fund Fund Fund Fund Fund
----------- ---------- ----------- ----------- ------------ ------------
Net investment income:
Dividends $ 870,089 $ - $ 575,361 $ 3,298,695 $ 1,131,379 $ 1,054,844
Interest - 1,662,939 - - - -
----------- ---------- ---------- ----------- ------------ ------------
870,089 1,662,939 575,361 3,298,695 1,131,379 1,054,844
Contributions and other receipts:
Participants 1,895,072 405,874 1,188,548 2,023,196 1,435,212 2,118,797
Engelhard Corporation 2,968,262 - - - - -
----------- ---------- ---------- ----------- ------------ ------------
4,863,334 405,874 1,188,548 2,023,196 1,435,212 2,118,797
Net realized gain (loss) on disposition
of investments 1,232,897 - (122,284) 301,646 594,599 1,043,816
Unrealized appreciation (depreciation)
of investments (2,322,572) - (813,849) (692,583) (955,994) 3,074,287
Distributions (3,194,340) (4,721,069) (403,530) (3,188,439) (997,098) (2,502,946)
Other Expenses (1,000) (3,500) (421) (920) (1,040) (159)
Transfers (333,101) 774,345 (788,203) (3,539,305) (1,132,442) 1,014,580
Transfer from Mearl Profit Sharing Plan - 3,500,301 - 689,176 419,624 673,774
------------ ------------ ---------- ----------- ------------ ------------
Change in net assets 1,115,307 1,618,890 (364,378) (1,108,534) 494,240 6,476,993
Plan equity, beginning of year 45,868,685 27,758,796 4,964,957 26,828,349 14,729,702 18,720,574
------------ ----------- ---------- ----------- ------------ ------------
Plan equity, end of year $46,983,992 $29,377,686 $4,600,579 $25,719,815 $15,223,942 $25,197,567
============ =========== ========== =========== ============ ============
See Accompanying Notes to Financial Statements
11
Salary Deferral Savings Plan
of Engelhard Corporation
Statement of Income and Changes in Plan Equity
for the Year Ended December 31, 1999
(Page 2 of 3)
Life Life
International Small Short-Term Prime Strategy Strategy
Growth Cap Bond Cap Growth Income
Fund Fund Fund Fund Fund Fund
------------- ---------- ---------- ----------- -------- --------
Net investment income:
Dividends $ 215,561 $ 307,895 $ 110,367 $ 644,262 $ 95,194 $ 25,989
Interest - - - - - -
---------- ---------- ---------- ---------- ---------- --------
215,561 307,895 110,367 644,262 95,194 25,989
Contributions and other receipts:
Participants 571,890 531,408 224,115 1,070,318 954,648 328,907
Engelhard Corporation - - - - - -
---------- ---------- ---------- ---------- ---------- --------
571,890 531,408 224,115 1,070,318 954,648 328,907
Net realized gain (loss) on
disposition of investments 165,646 15,374 (10,051) 158,175 66,654 5,868
Unrealized appreciation
(depreciation) of investments 527,452 319,072 (43,456) 1,304,969 316,441 (15,142)
Distributions (325,338) (406,007) (152,946) (527,651) (227,841) (53,674)
Other expenses (380) (6,127) (339) - (121) (58)
Transfers (430,541) (406,008) (430,883) 4,474,210 (14,184) (383,603)
Transfer from Mearl Profit Sharing
Plan 95,800 147,112 72,095 - 206,026 114,482
---------- ---------- ---------- ---------- ---------- ---------
Change in net assets 820,090 502,719 (231,098) 7,124,283 1,396,817 22,769
Plan equity, beginning of year 3,555,767 2,923,896 2,064,710 2,622,922 2,099,340 487,197
---------- ---------- ---------- ---------- ---------- --------
Plan equity, end of year $4,375,857 $3,426,615 $1,833,612 $9,747,205 $3,496,157 $509,966
========== ========== ========== ========== ========== ========
See Accompanying Notes to Financial Statements
12
Salary Deferral Savings Plan
of Engelhard Corporation
Statement of Income and Changes in Plan Equity
for the Year Ended December 31, 1999
(Page 3 of 3)
Life Life
Strategy Vanguard Strategy
Conservative U.S. Moderate
Growth Growth Growth Loan
Fund Fund Fund Fund Combined
------------ ---------- ----------- ---------- ------------
Net investment income:
Dividends $ 48,864 $ 556,294 $102,845 $ - $ 9,037,639
Interest - - - 668,384 2,331,323
---------- ---------- ---------- ---------- ------------
48,864 556,294 102,845 668,384 11,368,962
Contributions and other receipts:
Participants 179,838 1,189,732 1,287,998 2,386 15,407,939
Engelhard Corporation - - - - 2,968,262
---------- ---------- ---------- ---------- ------------
179,838 1,189,732 1,287,998 2,386 18,376,201
Net realized gain (loss) on
disposition of investments 13,886 199,138 51,720 - 3,717,084
Unrealized appreciation
(depreciation) of investments 13,351 1,187,375 128,885 - 2,028,236
Distributions (48,009) (436,153) (767,793) (374,253) (18,327,087)
Other expenses (80) (420) (365) - (14,930)
Transfers (205,240) 1,521,123 (2,791) (117,957) -
Transfer from Mearl Profit Sharing Plan 232,532 927,794 438,206 691,254 8,208,176
--------- ---------- ---------- ---------- ------------
Change in net assets 235,142 5,144,883 1,238,705 869,814 25,356,642
Plan equity, beginning of year 903,081 6,400,819 1,675,251 7,493,128 169,097,174
---------- ----------- ---------- ---------- ------------
Plan equity, end of year $1,138,223 $11,545,702 $2,913,956 $8,362,942 $194,453,816
========== =========== ========== ========== ============
See Accompanying Notes to Financial Statements
13
Salary Deferral Savings Plan
of Engelhard Corporation
Statement of Income and Changes in Plan Equity
for the Year Ended December 31, 1998
(Page 1 of 3)
Company Fixed Windsor II Windsor Equity
Stock Income Growth Growth Balanced Index
Fund Fund Fund Fund Fund Fund
----------- --------- ---------- ----------- ------------ ------------
Net investment income:
Dividends $ 867,717 $ - $ 480,958 $ 2,348,860 $ 1,061,504 $ 893,993
Interest - 1,554,014 - - - -
----------- ---------- ---------- ----------- ------------ ------------
+ 867,717 1,554,014 480,958 2,348,860 1,061,504 893,993
Contributions and other receipts:
Participants 1,985,958 2,192,249 1,104,066 2,722,046 1,579,287 2,414,546
Engelhard Corporation 2,737,289 - - - - -
----------- ---------- ---------- ----------- ------------ ------------
4,723,247 2,192,249 1,104,066 2,722,046 1,579,287 2,414,546
Net realized gain on
disposition of investments 1,296,766 - 36,947 688,133 369,087 442,270
Unrealized appreciation
(depreciation) of investments 4,043,066 - (95,848) (2,683,638) 1,338,686 1,930,598
Distributions (2,137,372) (2,127,811) (145,165) (1,236,865) (619,478) (611,951)
Transfers (5,494,181) 1,408,373 3,583,999 (5,535,552) 550,091 888,012
------------ ------------ ---------- ----------- ------------ -----------
Change in net assets 3,299,243 3,026,825 4,964,957 (3,697,016) 4,279,177 5,957,468
Plan equity, beginning of year 42,569,442 24,731,971 - 30,525,365 10,450,525 12,763,106
------------ ----------- ---------- ----------- ------------ ------------
Plan equity, end of year $45,868,685 $27,758,796 $4,964,957 $26,828,349 $14,729,702 $18,720,574
============ =========== ========== =========== ============ ============
See Accompanying Notes to Financial Statements
14
Salary Deferral Savings Plan
of Engelhard Corporation
Statement of Income and Changes in Plan Equity
for the Year Ended December 31, 1998
(Page 2 of 3)
Life Life
International Small Short-Term Prime Strategy Strategy
Growth Cap Bond Cap Growth Income
Fund Fund Fund Fund Fund Fund
------------- ---------- ---------- ------ -------- --------
Net investment income:
Dividends $ 68,741 $ 225,951 $ 85,641 $ 89,906 $ 66,175 $ 25,396
Interest - - - - - -
---------- ---------- -------- ---------- ---------- --------
68,741 225,951 85,641 89,906 66,175 25,396
Contributions and other receipts:
Participants 616,111 577,338 396,887 593,467 1,015,800 141,292
Engelhard Corporation - - - - - -
---------- ---------- --------- ---------- ---------- --------
616,111 577,338 396,887 593,467 1,015,800 141,292
Net realized gain on disposition
of investments 96,006 66,958 2,267 5,255 28,451 5,382
Unrealized appreciation
(depreciation) of investments 336,936 (335,259) 1,825 259,756 163,107 6,386
Distributions (294,106) (129,823) (43,909) (1,705) (44,657) (845)
Transfers (310,468) (247,396) 788,400 1,676,243 114,004 36,183
---------- ---------- ---------- ----------- ---------- --------
Change in net assets 513,220 157,769 1,231,111 2,622,922 1,342,880 213,794
Plan equity, beginning of year 3,042,547 2,766,127 833,599 - 756,460 273,403
---------- ---------- -------- ----------- -------- --------
Plan equity, end of year $3,555,767 $2,923,896 $2,064,710 $2,622,922 $2,099,340 $487,197
========== ========== ========== ========== ========== ========
See Accompanying Notes to Financial Statements
15
Salary Deferral Savings Plan
of Engelhard Corporation
Statement of Income and Changes in Plan Equity
for the Year Ended December 31, 1998
(Page 3 of 3)
Life Life
Strategy Vanguard Strategy
Conservative U.S. Moderate
Growth Growth Growth Loan
Fund Fund Fund Fund Combined
------------ ---------- --------- ---------- ------------
Net investment income:
Dividends $ 35,267 $ 378,919 $ 65,440 $ - $ 6,694,468
Interest - - - 510,419 2,064,433
-------- ---------- -------- ---------- ------------
35,267 378,919 65,440 510,419 8,758,901
Contributions and other receipts:
Participants 271,268 1,162,658 693,404 351,398 17,817,775
Engelhard Corporation - - - - 2,737,289
-------- ---------- ---------- ---------- ------------
271,268 1,162,658 693,404 351,398 20,555,064
Net realized gain on disposition
of investments 783 79,276 20,847 - 3,138,428
Unrealized appreciation
(depreciation) of investments 39,509 750,006 109,325 - 5,864,455
Distributions ( 22,359) (56,102) (118,744) (229,669) (7,820,561)
Transfers 355,457 2,213,195 136,728 (163,088) -
--------- ---------- --------- ----------- -------------
Change in net assets 679,925 4,527,952 907,000 469,060 30,496,287
Plan equity, beginning of year 223,156 1,872,867 768,251 7,024,068 138,600,887
-------- ---------- -------- ---------- ------------
Plan equity, end of year $903,081 $6,400,819 $1,675,251 $7,493,128 $169,097,174
======== ========== ========== ========== ============
See Accompanying Notes to Financial Statements
16
Salary Deferral Savings Plan
of Engelhard Corporation
Statement of Income and Changes in Plan Equity
for the Year Ended December 31, 1997
(Page 1 of 3)
Company Fixed Windsor Equity
Stock Income Growth Balanced Index
Fund Fund Fund Fund Fund
----------- --------- ---------- ----------- ----------
Net investment income:
Dividends $ 819,447 $ - $ 4,880,851 $ 791,374 $1,558,580
Interest - 1,517,387 - - -
----------- ---------- ----------- ----------- -----------
819,447 1,517,387 4,880,851 791,374 $1,558,580
Contributions and other receipts:
Participants 2,312,800 2,230,370 2,880,465 1,164,206 1,385,640
Engelhard Corporation 2,404,098 - - - -
----------- ---------- ----------- ----------- ------------
4,716,898 2,230,370 2,880,465 1,164,206 1,385,640
Net realized gain (loss) on disposition
of investments 1,299,661 - 703,758 252,369 249,513
Unrealized appreciation (depreciation)
of investments (5,192,044) - (436,574) 1,030,888 1,239,613
Transaction fees - - - - -
Distributions (2,077,923) (2,597,410) (1,466,096) (611,512) (536,238)
Transfers (2,413,985) (1,799,344) 1,233,660 657,446 753,675
------------ ------------ ----------- ------------ ------------
Change in net assets (2,847,946) (648,997) 7,796,064 3,284,771 4,650,783
Plan equity, beginning of year 45,417,388 25,380,968 22,729,301 7,165,754 8,112,323
------------ ----------- ----------- ------------ ------------
Plan equity, end of year $42,569,442 $24,731,971 $30,525,365 $10,450,525 $12,763,106
============ =========== =========== ============ ============
See Accompanying Notes to Financial Statements
17
Salary Deferral Savings Plan
of Engelhard Corporation
Statement of Income and Changes in Plan Equity
for the Year Ended December 31, 1997
(Page 2 of 3)
Life Life
International Small Short-Term Strategy Strategy
Growth Cap Bond Growth Income
Fund Fund Fund Fund Fund
------------- -------- ---------- -------- ---------
Net investment income:
Dividends $ 128,390 $157,508 $56,581 $ 26,828 $ 8,018
Interest - - - - -
---------- ---------- ------- -------- --------
128,390 157,508 56,581 26,828 8,018
Contributions and other receipts:
Participants 563,616 473,715 209,656 259,086 22,287
Engelhard Corporation - - - - -
---------- ---------- ------- -------- --------
563,616 473,715 209,656 259,086 22,287
Net realized gain (loss) on disposition
of investments 102,799 70,631 436 4,505 (7,823)
Unrealized appreciation
(depreciation) of investments (150,130) 193,843 4,357 33,100 5,394
Transaction fees - (10,442) - - -
Distributions (189,083) (253,681) (240,736) (39,348) (95,877)
Transfers 139,613 381,406 70,174 312,348 232,468
----------- ----------- -------- --------- ---------
Change in net assets 595,205 1,012,980 100,468 596,519 164,467
Plan equity, beginning of year 2,447,342 1,753,147 733,131 159,941 108,936
---------- ---------- ------- -------- --------
Plan equity, end of year $3,042,547 $2,766,127 $833,599 $756,460 $273,403
========== ========== ======== ======== ========
See Accompanying Notes to Financial Statements
18
Salary Deferral Savings Plan
of Engelhard Corporation
Statement of Income and Changes in Plan Equity
for the Year Ended December 31, 1997
(Page 3 of 3)
Life Life
Strategy Vanguard Strategy
Conservative U.S. Moderate
Growth Growth Growth Loan
Fund Fund Fund Fund Combined
------------ -------- --------- -------- ------------
Net investment income:
Dividends $ 13,432 $ 71,659 $ 31,473 $ - $ 8,544,141
Interest - - - 555,647 2,073,034
-------- -------- -------- ---------- ------------
13,432 71,659 31,473 555,647 10,617,175
Contributions and other receipts:
Participants 130,609 435,224 295,982 - 12,363,656
Engelhard Corporation - - - - 2,404,098
-------- -------- -------- ---------- ------------
130,609 435,224 295,982 - 14,767,754
Net realized gain (loss) on disposition
of investments 25,888 (22,168) 6,145 - 2,685,714
Unrealized appreciation
(depreciation) of investments 415 173,795 49,959 - (3,047,384)
Transaction fees - - - - (10,442)
Distributions (261,176) (43,745) (32,252) (330,664) (8,775,741)
Transfers 128,884 289,003 236,737 (222,085) -
-------- -------- -------- ---------- ------------
Change in net assets 38,052 903,768 588,044 2,898 16,237,076
Plan equity, beginning of year 185,104 969,099 180,207 7,021,170 122,363,811
-------- -------- -------- ---------- ------------
Plan equity, end of year $223,156 $1,872,867 $768,251 $7,024,068 $138,600,887
======== ========== ======== ========== ============
See Accompanying Notes to Financial Statements
19
Notes to Financial Statements
Note 1 - Description of the Plan
The Salary Deferral Savings Plan of Engelhard Corporation (the Plan), as
amended and restated as of April 6, 2000 is designed to provide eligible
employees of Engelhard Corporation (the Company) an opportunity to save part of
their income by having the Company reduce their compensation and contribute the
amount of the reduction to the Plan on a tax deferred and/or post-tax basis.
The following plan description is provided for general information
purposes. Participants of the Plan should refer to the Plan Document for more
detailed and complete information.
Eligibility
- -----------
Except as specifically included or excluded by the Board of Directors of the
Company (the Board), United States salaried employees of the Company and its
wholly-owned (directly or indirectly) domestic subsidiaries and all non-
collectively bargained hourly employees are eligible to participate in the Plan.
Contributions
- -------------
The Plan permits eligible employees participating in the Plan the opportunity
to defer up to 15 percent of their compensation, as defined, subject to certain
restrictions and limitations, and to have that amount contributed to the Plan
and the related taxes deferred. Employees may also contribute, subject to
certain restrictions and limitations, up to 10 percent of compensation to the
Plan on a post-tax basis.
Matching Contributions
- ----------------------
The Company will contribute, on a monthly basis, subject to certain limitations
and exclusions, either cash or common stock of the Company in an amount equal to
50 percent of the first 6 percent contributed by the Participants. Participants
must have completed one year of service to be eligible for a matching
contribution.
Investments
- -----------
All contributions to the Plan are held and invested by Vanguard Fiduciary Trust
Company (the Trustee). The Trustee maintains fifteen separate investment funds
within the Plan:
a) The Company Stock Fund consists of assets invested or held
for investment in the common stock of the Company. In the
event the assets cannot be immediately invested in Company
common stock, the funds are invested in short-term securities
pending investment in Company common stock.
b) The Fixed Income Fund consists of assets invested in shares
of the Vanguard Retirement Savings Trust. In the event the
assets cannot be immediately invested in such shares or
deposited as specified above, the assets are invested in
direct obligations of the United States Government or agencies
thereof or in obligations guaranteed as to the payment of
principal and interest by the United States Government.
20
c) The Windsor II Fund consists of assets invested in the
Vanguard Windsor II fund, which invests primarily in stocks
which seeks long-term growth and income from dividends.
d) The Windsor Growth Fund consists of assets invested in the
Vanguard Windsor Fund, which invests primarily in common
stocks for the purpose of realizing long-term growth of
capital and income.
e) The Balanced Fund consists of assets invested in the
Vanguard Asset Allocation Fund, which invests in stocks,
bonds and cash reserves for the purpose of maximizing long-
term total return with less volatility than a portfolio of
common stock.
f) The Equity Index Fund consists of assets invested in
the Vanguard Growth and Income Portfolio, which invests
primarily in common stocks for the purpose of realizing a
total return greater than the Standard & Poor's 500 Index
while maintaining fundamental investment characteristics
similar to such Index.
g) The International Growth Fund consists of assets
invested in shares of the Vanguard International Growth
Portfolio or such other mutual fund or funds which invest
primarily in common stocks of companies based outside the
United States that have above-average growth potential for
the purpose of realizing long-term capital growth.
h) The Small Cap Fund consists of assets invested in
shares of the Vanguard Index Trust - Small Cap Stock Portfolio
or such other mutual fund or funds which invest primarily in
common stocks of small-sized companies for the purpose of
providing a comparatively low-cost method of passively
capturing the investment returns of small-sized companies and
attempting to provide investment results that parallel the
performance of the unmanaged Russell 2000 Small Stock Index.
i) The Short-Term Bond Fund consists of assets invested
in shares of the Vanguard Fixed Income Fund or Short-Term
Corporate Portfolio of the Vanguard Fixed Income Securities
Fund or such other mutual fund or funds which invest primarily
in relatively short maturity investment-grade bonds for the
purpose of providing a level of current income consistent with
a two to three year average maturity while helping to preserve
capital.
j) The Prime Cap Fund consists of assets invested in the
Vanguard Prime Cap fund and seeks long-term growth of capital.
k) The Life Strategy Growth Fund consists of assets invested in
the Vanguard Life Strategy Growth Portfolio. This fund
invests in other Vanguard mutual funds representing a
combination of stocks, bonds and reserves in order to provide
growth of capital.
21
l) The Life Strategy Income Fund consists of assets invested in
the Vanguard Life Strategy Income Portfolio. This fund
invests in other Vanguard mutual funds representing a
combination of stocks, bonds and reserves in order to provide
current income.
m) The Life Strategy Conservative Growth Fund consists of assets
invested in the Vanguard Life Strategy Conservative Growth
portfolio. This fund invests in other Vanguard mutual funds
representing a combination of stocks, bonds, and reserves in
order to provide current income and a low to moderate growth
of capital.
n) The Vanguard U.S. Growth portfolio seeks to provide long-term
capital appreciation by investing in common stocks of
companies with above-average growth potential for the purpose
of seeking long-term capital growth.
o) The Life Strategy Moderate Growth Fund consists of assets
invested in the Vanguard Life Strategy Moderate Growth Fund.
This fund invests in other Vanguard mutual funds representing
a combination of stocks, bonds and reserves in order to
provide growth of capital and a reasonable level of current
income.
Participants have the right to elect, subject to restrictions, the
investment fund or funds in which their contributions are invested. All matching
contributions are initially invested in the Company Stock Fund. The Participants
matching contributions are intially restricted and become unrestricted at the
rate of 25 percent per year. Once unrestricted funds may be moved to one of the
other investment funds.
The number of Participants in each fund was as follows at December 31:
Participants 1999 1998
------------ ----- -----
Company Stock Fund 2,620 2,598
Fixed Income Fund 1,031 1,070
Growth Fund (Windsor II) 480 398
Growth Fund (Windsor) 1,287 1,412
Balanced Fund 930 928
Equity Index Fund 1,230 1,137
International Growth Fund 485 507
Small Cap Fund 395 410
Short-Term Bond Fund 216 211
Prime Cap Fund 514 270
Life Strategy Growth Fund 342 295
Life Strategy Income Fund 67 52
Life Strategy Conservative Growth Fund 103 92
Vanguard U.S. Growth Fund 762 578
Life Strategy Moderate Growth Fund 249 208
The total number of Participants in the Plan was less than the sum of the
number of Participants shown above because many were participating in more than
one fund.
The number of units representing Participant interests in each fund and the
related net asset value per unit were as follows at December 31:
22
Participant Interests
Company Fixed Windsor II Windsor Equity Int'l Small
Stock Income Growth Growth Balanced Index Growth Cap
Fund Fund Fund Fund Fund Fund Fund Fund
--------- ---------- ---------- --------- --------- --------- -------- --------
1999:
Units 1,479,811 29,377,686 184,244 1,695,439 639,661 679,546 194,569 145,196
Value per unit $31.75 $1.00 $24.97 $15.17 $23.80 $37.08 $22.49 $23.60
1998:
Units 1,396,307 27,758,796 166,330 1,723,080 604,172 608,601 189,439 137,920
Value per unit $32.85 $1.00 $29.85 $15.57 $24.38 $30.76 $18.77 $21.20
Life Life
Life Life Strategy Vanguard Strategy
Short-Term Prime Strategy Strategy Conservative U.S. Moderate
Bond Cap Growth Income Growth Growth Growth
Fund Fund Fund Fund Fund Fund Fund
---------- --------- --------- -------- ------------ -------- ---------
1999:
Units 174,132 157,036 163,296 39,779 75,379 265,236 160,284
Value per unit $10.53 $62.07 $21.41 $12.82 $15.10 $43.53 $18.18
1998:
Units 190,471 55,034 111,726 36,853 61,392 170,734 99,362
Value per unit $10.84 $47.66 $18.79 $13.22 $14.71 $37.49 $16.86
The accompanying Statement of Financial Condition as of December 31, 1999
includes all individual investments which exceed five percent of the Plan's
total assets at this date. The only non-participant directed investment is the
Engelhard Corp Stock Fund and is included in the accompanying Statement of
Financial Condition.
Included in the Engelhard Corporation Stock Fund is $6,739,752 at December
31, 1999 and $6,078,815 at December 31, 1998 of restricted
Company matching contributions.
Vesting
- -------
Participants at all times have a fully vested and non-forfeitable interest in
their contributions and in the matching contributions allocated to their
account.
Loan Provision
- --------------
The Plan allows Participants who have participated in the Plan for at least one
year to borrow funds from their accounts, subject to certain terms and
conditions, at a reasonable interest rate as determined by the Company in
accordance with applicable laws and regulations.
23
Termination
- -----------
The Company, although it expects and intends to continue the Plan indefinitely,
has reserved the right of the Board to terminate or amend the Plan.
Distributions and Withdrawals
- -----------------------------
All distributions and withdrawals from the Plan are made to Participants in a
lump sum cash payment except those amounts distributed from the Company Stock
Fund which may, at the Participant's election, be paid in full shares of the
Company's common stock with cash paid in lieu of fractional shares.
Note 2 - Accounting Policies
The accounts of the Plan are maintained on an accrual basis. Purchases and
sales of investments are reflected on a trade date basis. Assets of the Plan are
valued at fair value. Gains and losses on distributions to Participants and
sales of investments are based on average cost.
The preparation of the financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported. Actual results may differ from
those estimates.
The Plan provides for various investment options in any combination of
stocks or mutual funds. Investment securities are exposed to various risks, such
as interest rate, market and credit. Due to the level of risk associated with
certain investment securities and the level of uncertainty related to changes in
the value of investment securities, it is at least reasonably possible that
changes in risks in the near term would materially affect Participants' account
balances and the amounts reported in the Statement of Financial Condition and
the Statement of Income and Changes in Plan Equity.
Certain 1997 amounts have been reclassified to conform to 1998
classifications.
Note 3 - Income Tax Status
The Plan and the Trust created thereunder are intended to qualify under
Sections 401(a) and 501(a) of the Internal Revenue Code of 1986, as amended (the
Code) and the Plan includes a cash or deferred arrangement intended to meet the
requirements of Section 401(k) of the Code. The Internal Revenue Service has
issued a favorable determination letter as to the Plan's qualified status under
the Code. Amounts contributed to and earned by the Plan are not taxed to the
employee until a distribution from the Plan is made. In addition, the unrealized
appreciation on any shares of common stock of the Company distributed to an
employee is not taxed until the time of disposition of such shares. The Plan has
been amended since receiving the determination letter. However, the Plan
Administrator believes the Plan is designed and is currently operating in
compliance with the Internal Revenue Code.
Note 4 - Administrative Expenses
All expenses of the Plan, with the exception of loan application and loan
administration fees, are paid for by the Company. Investment advisory fees for
portfolio management of the Vanguard funds are paid directly from fund earnings.
24
Advisory fees are included in the fund expense ratio and will not reduce the
assets of the Plan. Brokerage commissions paid to purchase Engelhard Corporation
common stock are being charged against each Participant's fund unit value.
Note 5 - Concentrations of Credit Risk
Financial instruments which potentially subject the Plan to concentrations
of credit risk consist principally of investment contracts with insurance and
other financial institutions. The Plan places its investment contracts with
high-credit quality institutions and, by policy, limits the amount of credit
exposure to any one financial institution.
Note 6 - Investments
Investments in the common stock of the Company are valued at the
readily-available, quoted market price as of the valuation date and investments
in Vanguard Funds are valued based on the quoted net asset value (redemption
value) of the respective investment fund as of the valuation date.
The net realized gain (loss) on disposition of investments was computed as follows:
Net realized gain (loss)
Company Fixed Windsor II Windsor Equity Int'l
Stock Income Growth Growth Balanced Index Growth
Fund Fund Fund Fund Fund Fund Fund
----------- ----------- ----------- ----------- ---------- ----------- ----------
Year ended December 31, 1999 -
Amount realized $13,552,330 $19,984,245 $2,864,090 $9,003,497 $3,634,251 $5,767,060 $5,213,659
Cost-average 12,319,433 19,984,245 2,986,374 8,701,851 3,039,652 4,723,244 5,048,013
Net realized gain (loss) 1,232,897 - (122,284) 301,646 594,599 1,043,816 165,646
Life
Life Life Strategy Vanguard
Small Short-term Prime Strategy Strategy Conservative U.S.
Cap Bond Cap Growth Income Growth Growth
Fund Fund Fund Fund Fund Fund Fund
---------- ----------- ----------- ----------- ----------- ------------ -----------
Year ended December 31, 1999 -
Amount realized $1,623,944 $1,626,617 $2,927,966 $896,470 $1,696,189 $825,695 $3,789,056
Cost-average 1,608,570 1,636,668 2,769,791 829,816 1,690,321 811,809 3,589,918
Net realized gain (loss) 15,374 (10,051) 158,175 66,654 5,868 13,886 199,138
Life
Strategy
Moderate
Growth
Fund Combined
----------- -----------
Year ended December 31, 1999 -
Amount realized 1,056,995 $74,462,064
Cost-average 1,005,275 70,744,980
Net realized gain (loss) 51,720 3,717,084
25
Company Fixed Windsor II Windsor Equity Int'l
Stock Income Growth Growth Balanced Index Growth
Fund Fund Fund Fund Fund Fund Fund
------------ ----------- ----------- --------- ------------ ----------- -----------
Year ended December 31, 1998 -
Amount realized $20,045,192 $10,796,138 $1,764,356 $10,014,411 $2,503,355 $4,417,345 $4,716,648
Cost-average 18,748,426 10,796,138 1,727,409 9,326,278 2,134,268 3,975,075 4,620,642
Net realized gain 1,296,766 - 36,947 688,133 369,087 442,270 96,006
Life Life
Life Vanguard Strategy Strategy
Small Short-term Prime Strategy U.S. Income Conservative
Cap Bond Cap Growth Growth Growth Growth
Fund Fund Fund Fund Fund Fund Fund
----------- ----------- ----------- ------------ ----------- ----------- ------------
Year ended December 31, 1998 -
Amount realized $1,534,209 $2,644,925 $1,309,019 $357,992 $1,750,108 $5,862,331 $ 373,171
Cost-average 1,467,251 2,642,658 1,303,764 329,541 1,670,832 5,856,949 372,388
Net realized gain 66,958 2,267 5,255 28,451 79,276 5,382 783
Life
Strategy
Moderate
Growth
Fund Combined
---------- -----------
Year ended December 31, 1998 -
Amount realized $359,160 $68,448,360
Cost-average 338,313 65,309,932
Net realized gain 20,847 3,138,428
Company Fixed Windsor Equity Int'l Small
Stock Income Growth Balanced Index Growth Cap
Fund Fund Fund Fund Fund Fund Fund
----------- ----------- ----------- ---------- ----------- ----------- ----------
Year ended December 31, 1997 -
Amount realized $39,601,904 $9,844,450 $18,957,239 $5,191,173 $10,324,840 $7,200,253 $3,786,809
Cost-average 38,302,243 9,844,450 18,253,481 4,938,804 10,075,327 7,097,454 3,716,178
Net realized gain (loss) 1,299,661 - 703,758 252,369 249,513 102,799 70,631
Life Life
Vanguard Life Strategy Strategy Life
Short-term U.S. Strategy Conservative Moderate Strategy
Bond Growth Growth Growth Growth Income
Fund Fund Fund Fund Fund Fund Combined
----------- ------------ ----------- ------------- -------- -------- ------------
Year ended December 31, 1997 -
Amount realized $14,604,327 $6,117,191 $1,241,894 $1,189,027 $837,015 $4,522,250 $123,418,372
Cost-average 14,603,891 6,139,359 1,237,389 1,163,139 830,870 4,530,073 120,732,658
Net realized gain (loss) 436 (22,168) 4,505 25,888 6,145 (7,823) 2,685,714
26
The net unrealized appreciation (depreciation) of investments held was computed as follows:
Net unrealized appreciation (depreciation)
Company Windsor II Windsor Equity Int'l Small
Stock Growth Growth Balanced Index Growth Cap
Fund Fund Fund Fund Fund Fund Fund
----------- ---------- ----------- ----------- ----------- ---------- ----------
Year ended December 31, 1999 -
Balance, beginning of year $7,354,735 $(95,848) $ (18,949) $3,415,997 $4,646,357 $449,768 $ 13,960
Net change (2,322,572) (813,849) (692,583) (955,994) 3,074,287 527,452 319,072
Balance, end of year 5,032,163 (909,697) (711,532) 2,460,003 7,720,644 977,220 333,032
Life Life
Life Life Strategy Vanguard Strategy
Short-term Prime Strategy Strategy Conservative U.S. Moderate
Bond Cap Growth Income Growth Growth Growth
Fund Fund Fund Fund Fund Fund Fund
----------- ----------- ---------- ---------- ------------ ----------- ----------
Year ended December 31, 1999 -
Balance, beginning of year $ 6,516 $ 259,756 $200,585 $ 7,018 $41,390 $ 875,867 $162,667
Net change (43,456) 1,304,969 316,441 (15,142) 13,351 1,187,375 128,885
Balance, end of year (36,940) 1,564,725 517,026 (8,124) 54,741 2,063,242 291,552
Combined
------------
Year ended December 31, 1999 -
Balance, beginning of year $17,319,819
Net change 2,028,236
Balance, end of year 19,348,055
Company Windsor Equity Int'l Small Windsor II
Stock Growth Balanced Index Growth Cap Growth
Fund Fund Fund Fund Fund Fund Fund
----------- ---------- ---------- ----------- -------- ---------- -----------
Year ended December 31, 1998 -
Balance, beginning of year $ 3,311,669 $2,664,689 $2,077,311 $2,715,759 $112,832 $349,219 $ -
Net change 4,043,066 (2,683,638) 1,338,686 1,930,598 336,936 (335,259) (95,848)
Balance, end of year 7,354,735 (18,949) 3,415,997 4,646,357 449,768 13,960 (95,848)
Life Life
Life Life Strategy Vanguard Strategy
Strategy Strategy Conservative U.S. Moderate Short-term Prime
Growth Income Growth Growth Growth Bond Cap
Fund Fund Fund Fund Fund Fund Fund
----------- ---------- ------------ ----------- -------- --------- ------------
Year ended December 31, 1998 -
Balance, beginning of year $ 37,478 $ 632 $ 1,881 $125,861 $ 53,342 $4,691 -
Net change 163,107 6,386 39,509 750,006 109,325 1,825 $259,756
Balance, end of year 200,585 7,018 41,390 875,867 162,667 6,516 259,756
Combined
-----------
Year ended December 31, 1998 -
Balance, beginning of year $11,455,364
Net change 5,864,455
Balance, end of year 17,319,819
27
Company Windsor Equity Int'l Small Short-term
Stock Growth Balanced Index Growth Cap Bond
Fund Fund Fund Fund Fund Fund Fund
----------- ---------- ---------- ----------- -------- --------- -----------
Year ended December 31, 1997 -
Balance, beginning of year $ 8,503,713 $3,101,263 $1,046,423 $1,476,146 $262,962 $155,376 $ 334
Net change (5,192,044) (436,574) 1,030,888 1,239,613 (150,130) 193,843 4,357
Balance, end of year 3,311,669 2,664,689 2,077,311 2,715,759 112,832 349,219 4,691
Life Life
Life Life Strategy Vanguard Strategy
Strategy Strategy Conservative U.S. Moderate
Growth Income Growth Growth Growth
Fund Fund Fund Fund Fund Combined
----------- ---------- ------------ ----------- -------- ------------
Year ended December 31, 1997 -
Balance, beginning of year $ 4,378 $(4,762) $1,466 $(47,934) $ 3,383 $14,502,748
Net change 33,100 5,394 415 173,795 49,959 (3,047,384)
Balance, end of year 37,478 632 1,881 125,861 53,342 11,455,364
28
Note 7 - Related Party Transactions
For the 1999 plan year, the Company transferred 154,351 treasury stock
shares (representing a contribution dollar amount of $2,968,262) to Vanguard to
fund the employer match. The number of shares transferred each month represented
the employer matching contribution divided by the closing market price on the
day the contribution was remitted.
Note 8 - Transfer from Mearl Corporation Employee's Profit Sharing Plan
The Mearl Corporation Employee's Profit Sharing Plan was terminated on
March 31, 1999. All Participants were given the option to a) receive a cash
payment, b) transfer their balance to an Individual Retirement Account, or
c) transfer their balance to one of the Engelhard Corporation 401K Plans. All
amounts transferred under option "c" above are shown on the Statement of
Income and Changes in the Plan Equity for the year ended December 31, 1999.
Note 9 - Voluntary Compliance Resolution Program
During 1999 the Company discovered possible compliance violations with
certain administrative practices of the Plan. The Company has filed under a
Voluntary Compliance Resolution Program (VCRP) with the Internal Revenue Service
on behalf of the Plan. The Compliance issues involve failure to distribute
required minimum distributions from the Plan with respect to certain
Participants who have reached the age of 70 1/2. The issue effected
approximately 10 Participants in the Plan. The VCRP is pending approval from the
Internal Revenue Service. The Company has taken corrective actions to prevent
any further occurrences of this issue. The Company and Plan Administrator do not
believe the issues will have a material effect on the financial statements.
29
Salary Deferral Savings Plan of Engelhard Corporation
Schedule of Investments
at December 31, 1999
Approximate
Cost Market Value
------------ --------------
Common Stock of Engelhard Corporation $41,566,930 $ 46,599,093
(2,499,584 shares)
Vanguard Retirement Savings Trust 29,270,606 29,270,606
Vanguard Windsor II Fund 5,463,729 4,554,032
Vanguard Windsor Fund 26,307,156 25,595,624
Vanguard Asset Allocation Fund 12,687,277 15,147,280
Vanguard Growth and Income Portfolio 17,357,471 25,078,115
Vanguard International Growth Portfolio 3,370,315 4,347,535
Vanguard Index Trust 3,073,325 3,406,357
Vanguard Fixed Income Securities Fund 1,858,566 1,821,626
Vanguard Life Strategy Growth Portfolio 2,932,443 3,449,469
Vanguard Prime Cap Fund 8,121,143 9,685,868
Vanguard Life Strategy Income Portfolio 513,702 505,578
Vanguard Life Strategy Conservative Growth Portfolio 1,076,652 1,131,393
Vanguard U.S. Growth Fund 9,399,429 11,462,671
Vanguard Life Strategy Moderate Growth Portfolio 2,597,758 2,889,310
------------ ------------
Total $165,596,502 $184,944,557
============ ============
30
Salary Deferral Savings Plan of Engelhard Corporation
Schedule of Investments
at December 31, 1998
Approximate
Cost Market Value
------------ --------------
Common Stock of Engelhard Corporation $38,036,386 $ 45,391,121
(2,327,750 shares)
Vanguard Retirement Savings Trust 27,603,965 27,603,965
Vanguard Windsor II Fund 5,003,101 4,907,253
Vanguard Windsor Fund 26,657,623 26,638,674
Vanguard Asset Allocation Fund 11,208,522 14,624,519
Vanguard Growth and Income Portfolio 13,930,929 18,577,286
Vanguard International Growth Portfolio 3,072,133 3,521,901
Vanguard Index Trust 2,880,870 2,894,830
Vanguard Fixed Income Securities Fund 2,040,505 2,047,021
Vanguard Life Strategy Growth Portfolio 1,859,943 2,060,528
Vanguard Prime Cap Fund 2,329,496 2,589,252
Vanguard Life Strategy Income Portfolio 476,323 483,341
Vanguard Life Strategy Conservative Growth Portfolio 850,159 891,549
Vanguard U.S. Growth Fund 5,449,498 6,325,365
Vanguard Life Strategy Moderate Growth Portfolio 1,486,815 1,649,482
------------ ------------
Total $142,886,268 $160,206,087
============ ============
31
CONSENT OF INDEPENDENT ACCOUNTANTS
----------------------------------
As independent public accountants, we hereby consent to the incorporation
of our report dated June 20, 2000 on the financial statements and financial
statement schedule as of, and for the year ended December 31, 1999 of the
Salary Deferral Savings Plan of the Engelhard Corporation into the Company's
previously filed Registration Statements on Form S-8 File Nos.: 2-72830
2-81559
2-84477
2-89747
33-28540
33-37724
33-40365
33-40338
33-43934
33-65990
333-02643
333-71439
/s/ Arthur Andersen L.L.P.
New York, New York
June 20, 2000
32
Consent of Independent Accountants
We hereby consent to the incorporation by reference in the Registration
Statements on Form S-8 (File Nos. 2-72830, 2-81559, 2-84477, 2-89747, 33-28540,
33-37724, 33-40365, 33-40338, 33-43934, 33-65990, 333-02643 and 333-71439) of
Engelhard Corporation and Subsidiaries of our report dated June 18, 2000
relating to the financial statements and financial statement schedule of the
Salary Deferral Savings Plan of Engelhard Corporation as of December 31, 1998,
and for each of the two years in the period ended December 31, 1998 which
appears in this Form 11-K.
New York, New York /S/PRICEWATERHOUSECOOPERS
June 18, 2000
33
Signature
---------
Form 11-K
Salary Deferral Savings Plan of Engelhard Corporation
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Pension and Employee Benefit Plans Committee of Engelhard Corporation has
duly caused this annual report to be signed on its behalf by the undersigned,
thereunto duly authorized, in Iselin, New Jersey on this 20th day of June,
2000.
/s/ John C. Hess
-------------
By: John C. Hess
Secretary to the Committee and
Vice President of Human Resources
34