SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1998
OR
TRANSITION REPORT PURSUANT TO SECTION 15 (D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission file number 001-00052
SUNBEAM CORPORATION
401(k) SAVINGS AND PROFIT SHARING PLAN
(Full title of the plan)
SUNBEAM CORPORATION
2381 Executive Center Drive
Boca Raton, FL 33431
(Name and address of issuer)
ANNUAL REPORT
Pursuant to Section 15 (d) of the
Securities Exchange Act of 1934
The following Financial Statements, Financial Statement Schedules and
Exhibits are provided herewith as the Annual Report filed pursuant to Section 15
(d) of the Securities Exchange Act of 1934 by the Sunbeam Corporation 401(k)
Savings and Profit Sharing Plan:
FINANCIAL STATEMENTS AND SCHEDULES PAGE
Independent Auditors' Reports.................................. F-1
Statements of Net Assets Available for Benefits
as of December 31, 1998 and 1997............................... F-3
Statements of Changes in Net Assets Available for
Benefits for the years ended December 31, 1998, 1997 and 1996.. F-4
Notes to Financial Statements.................................. F-5
Schedule II - Allocation of Net Assets Available for
Benefits to Investment Programs as
of December 31, 1998 and 1997............................. F-12
Schedule III - Allocation of Changes in Net Assets
Available for Benefits to Investment Programs
for the Years ended December 31, 1998, 1997 and 1996...... F-13
SIGNATURES
EXHIBITS
Consent of Deloitte & Touche LLP
Consent of Arthur Andersen LLP
INDEPENDENT AUDITORS' REPORT
To the Administrative Committee of the
Sunbeam Corporation 401(k) Savings
and Profit Sharing Plan:
We have audited the accompanying statement of net assets available for benefits
of the Sunbeam Corporation 401(k) Savings and Profit Sharing Plan (the "Plan")
as of December 31, 1998, and the related statement of changes in net assets
available for benefits for the year then ended. Our audit also included the
financial statement schedules as of and for the year ended December 31, 1998,
listed in the Index. These financial statements and financial statement
schedules are the responsibility of the Plan's management. Our responsibility is
to express an opinion on these financial statements and financial statement
schedules 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, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan as of December 31,
1998, and the changes in net assets available for benefits for the year then
ended in conformity with generally accepted accounting principles. Also, in our
opinion, such financial statement schedules as of and for the year ended
December 31, 1998, when considered in relation to the basic financial statements
taken as a whole, present fairly in all material respects the information set
forth therein.
DELOITTE & TOUCHE LLP
Certified Public Accountants
Fort Lauderdale, Florida
July 9, 1999
F-1
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Administrative Committee of the
Sunbeam Corporation 401(k) Savings
and Profit Sharing Plan:
We have audited the accompanying statements of net assets available for benefits
of the Sunbeam Corporation 401(k) Savings and Profit Sharing Plan (the "Plan",
formerly the Sunbeam-Oster Company, Inc. 401(k) Savings and Profit Sharing Plan)
as of December 31, 1997 and 1996, and the related statements of changes in net
assets available for benefits for the years then ended. These financial
statements and the supplemental schedules referred to below 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, 1997 and 1996, and the changes in its net assets available for
benefits for the years then ended, in conformity with generally accepted
accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental schedules
listed in the table of contents are presented for purposes of additional
analysis and are not a required part of the basic financial statements. This
information has been subjected to the auditing procedures applied in our 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.
ARTHUR ANDERSEN LLP
Fort Lauderdale, Florida
June 5, 1998
F-2
SUNBEAM CORPORATION
401(k) SAVINGS AND PROFIT SHARING PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
December 31,
1998 1997
------------- -------------
ASSETS:
Investments, at fair value:
Common collective trust funds (cost $39,638,428 and $32,368,132
in 1998 and 1997, respectively)............................................. $ 44,108,999 $ 37,029,881
Registered investment companies (cost $15,308,652 and $26,408,918
in 1998 and 1997, respectively)............................................. 18,107,814 28,809,504
Sunbeam Corporation common shares (cost $2,166,197 and $838,389
in 1998 and 1997, respectively)............................................. 728,433 969,126
Sunbeam Corporation stock pool (cost $967,670 and $2,257,413
in 1998 and 1997, respectively)............................................. 955,097 2,494,681
Participant loans receivable (cost $3,212,029 and $3,342,139
in 1998 and 1997, respectively)............................................. 3,212,029 3,342,139
------------- -------------
Total investments............................................................ 67,112,372 72,645,331
Employer contributions receivable................................................ - 703,979
Employee contributions receivable................................................ 174,812 207,813
------------- -------------
Net assets available for benefits..................................... $ 67,287,184 $ 73,557,123
============= =============
The accompanying notes to financial statements
are an integral part of this statement.
F-3
SUNBEAM CORPORATION
401(k) SAVINGS AND PROFIT SHARING PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Year Ended December 31,
1998 1997 1996
--------------- ------------- --------------
ADDITIONS:
Contributions:
Employer............................................... $ 699,591 $ 1,370,341 $ 1,707,550
Employee............................................... 2,056,721 2,812,072 4,218,168
Rollovers.............................................. 315,128 286,753 371,905
--------------- ------------- --------------
Total............................................. 3,071,440 4,469,166 6,297,623
--------------- ------------- --------------
Investment Income:
Interest and dividends................................. 1,556,766 3,364,050 2,290,641
Net realized gain (loss) on investments................ (46,041) 3,111,418 1,544,176
Net appreciation in fair value of investments.......... 2,527,608 3,219,510 5,445,880
--------------- ------------- --------------
Total............................................. 4,038,333 9,694,978 9,280,697
--------------- ------------- --------------
Total additions................................... 7,109,773 14,164,144 15,578,320
--------------- ------------- --------------
DEDUCTIONS:
Benefits paid to participants.......................... (12,209,596) (35,031,265) (12,674,427)
Administrative......................................... (58,063) (124,238) (29,371)
Transfers to unrelated company benefit plan............ (1,112,053) (355,772) -
--------------- -------------- --------------
Total deductions.................................. (13,379,712) (35,511,275) (12,703,798)
--------------- -------------- --------------
Net (decrease) increase in net assets
available for benefits.............................. (6,269,939) (21,347,131) 2,874,522
NET ASSETS AVAILABLE FOR BENEFITS,
beginning of year...................................... 73,557,123 94,904,254 92,029,732
--------------- ------------- --------------
NET ASSETS AVAILABLE FOR BENEFITS,
end of year............................................ $ 67,287,184 $ 73,557,123 $ 94,904,254
=============== ============= ==============
The accompanying notes to financial statements
are an integral part of this statement.
F-4
SUNBEAM CORPORATION
401(k) SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
1. PLAN DESCRIPTION
The following description of the Sunbeam Corporation 401(k) Savings and Profit
Sharing Plan (the "Plan", formerly the Sunbeam-Oster Company, Inc. 401(k)
Savings and Profit Sharing Plan), provides only general information.
Participants should refer to the Plan document for a more complete description
of the Plan.
BACKGROUND
The Plan was established effective January 1, 1991, and is sponsored by Sunbeam
Americas Holdings, Limited ("SAHL") and administered by Sunbeam Corporation
("Sunbeam" or the "Company"). The Plan, as amended, is a defined contribution
plan commonly known as an Internal Revenue Code ("IRC") section 401(k) profit
sharing plan and is subject to the Employee Retirement Income Security Act of
1974 ("ERISA"), as amended.
PARTICIPATION IN THE PLAN
Employees are eligible to participate in the Plan after (a) completing 1,000 or
more hours of employment during the twelve-month period following employment and
(b) attaining the age 21. After the first anniversary of an employee's hire
date, hours for eligibility purposes are counted based on the calendar year.
Employees may enter the Plan on the first day of any calendar month after
eligibility requirements have been met.
Plan entry for rehired employees who were formerly eligible employees of the
Plan occurs immediately upon reemployment. Employees who have been rehired and
were not formerly participants in the Plan are treated as new employees for
purposes of determining eligibility. The Plan is open to all U.S. employees of
Sunbeam except employees who are covered under a collective bargaining agreement
(unless coverage is specifically negotiated) and hourly employees earnings
benefits under a defined benefit pension plan sponsored by SAHL.
CONTRIBUTIONS TO THE PLAN
There are four active sources of contributions to the Plan. These sources
include (1) employee basic before-tax contributions, (2) employee supplemental
before-tax contributions, (3) employer matching contributions and (4) employer
profit sharing contributions.
EMPLOYEE BASIC AND SUPPLEMENTAL BEFORE-TAX CONTRIBUTIONS
Employees who are participants in the Plan may elect to contribute 1% to 4%
(basic) and up to an additional 6% (supplemental) of their eligible
compensation, as defined in the Plan, through payroll deductions. Qualified
employees could contribute up to $10,000 in 1998 and $9,500 in 1997 and 1996
subject to certain Plan and IRC limitations. Amounts contributed by participants
are fully vested at all times.
EMPLOYER MATCHING AND DISCRETIONARY PROFIT SHARING CONTRIBUTIONS
Employer matching contributions are amounts funded by the Company and are based
on employees' contributions. The Company's policy is to make matching
contributions equal to 100% of the first 2% of participants' basic before-tax
contributions and 50% of the next 2% (or up to 3% of participants' eligible
compensation, as defined in the Plan) for the applicable Plan year.
F-5
SUNBEAM CORPORATION
401(k) SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS-(CONTINUED)
1. PLAN DESCRIPTION - (CONTINUED)
EMPLOYER MATCHING AND DISCRETIONARY PROFIT SHARING CONTRIBUTIONS - CONTINUED
Each Plan year, the Company may make discretionary profit sharing contributions
to the Plan. The contributions, if any, would be based on the performance of
Sunbeam and of each business unit or division. Additionally, on November 12,
1996, the Plan was amended to provide that employer matching contributions made
on or after January 1, 1997, and employer discretionary profit sharing
contributions made on or after January 1, 1996, can be made in cash or in shares
of the Company's common stock, at the option of the Company. Employer
contributions made in common stock will be non-participant directed. In 1996,
employer matching contributions were made in cash, and there were no employer
discretionary profit sharing contributions made. In 1997, employer matching
contributions and employer discretionary profit sharing contributions were made
in stock. In 1998, employer matching contributions were made in stock ($453,715)
and cash ($245,876). The Company did not make a discretionary profit sharing
contribution in 1998.
Forfeited nonvested accounts totaled $705,887 and $197,585 at December 31, 1998
and 1997, respectively. These accounts will be and have been used to reduce
future employer contributions. As of December 31, 1998, $222,614 of the
forfeited nonvested accounts was set aside for the Company's fourth quarter 1998
matching contribution. Employer contributions were reduced by $222,614, $544,229
and $367,679 in 1998, 1997 and 1996, respectively, from forfeited nonvested
accounts.
The matching and profit sharing contributions are 100% vested if a participant
actively employed by the Company reaches his retirement date, dies or becomes
disabled. Otherwise, the matching and discretionary profit sharing contributions
are subject to the following vested schedule:
YEARS OF SERVICE VESTED PERCENTAGE
Less than 3 years 0%
3 but less than 4 years 25
4 but less than 5 years 50
5 or more years 100
In November 1996, the Company announced a restructuring plan. The restructuring
plan resulted is a significant reduction of the number of participants in the
Plan, primarily in 1997. The Company has assessed that this was deemed to be a
partial termination under IRC Regulations. Under a partial termination of the
Plan, participants terminated as part of the restructuring vested 100% in their
portion of employer contributions. The terminated employees became 100% vested
with respect to the employer matching contributions. In 1997, the Company's
information system ("IS") employees were spun-off to another unrelated company.
Accordingly, the IS employees' funds under the Plan were transferred to the
unrelated company's plan. Effective December 31, 1997, the Company outsourced
certain maintenance operations employees to an unrelated company. The Plan was
amended to allow for the employees' funds under the Plan to be transferred to
the other company's benefit plan during 1998. See the caption "Transfers to
unrelated company benefit plan" in the Statements of Changes in Net Assets
Available for Benefits.
Employer matching contributions are funded and credited to participants'
accounts quarterly. Employer discretionary profit sharing contributions are
funded and credited to participants' accounts by May of the calendar year
following the year in which basic and supplemental contributions are made. No
matching or profit sharing contributions will be credited to employees who
terminated employment (other than through retirement, disability or death) prior
to December 31 (the last day of the Plan year).
F-6
SUNBEAM CORPORATION
401(k) SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
1. PLAN DESCRIPTION - (CONTINUED)
PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the right
under the Plan to discontinue its contributions at any time and to terminate the
Plan subject to the provisions of ERISA. In the event of Plan termination,
participants will become fully vested in their accounts.
2. SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The financial statements of the Plan have been prepared using the accrual basis
of accounting.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets, liabilities, and changes therein, and
disclosure of contingent assets and liabilities. Actual results could differ
from those estimates.
CONTRIBUTIONS
Employer contributions are recorded in the financial statements when accrued by
the Company. Employee contributions are accrued at the time of employee
withholdings. Contributions are credited to participants' accounts based on
their investment elections effective as of the date the contributions are
actually paid.
INCOME RECOGNITION
Investment income consists of interest and dividends. Interest on investments is
recognized in the period earned, while dividends are recorded as of the
ex-dividend date.
Gains and losses on sales of investments are recognized when realized, while
unrealized gains and losses on investments are recognized daily based on
fluctuations in market value. Purchases and sales of investments are recorded on
a trade-date basis.
The income or loss of each fund, including the change in market value of
investments, is allocated to participants' accounts based on their proportionate
interest in the total assets of the Plan.
PAYMENT OF BENEFITS
Benefits are recorded when paid.
ADMINISTRATIVE EXPENSES
Certain administrative functions are performed by officers or employees of the
Company. No such officer or employee receives compensation from the Plan.
Administrative expenses for the Trustee's fees are paid by the Plan.
F-7
SUNBEAM CORPORATION
401(k) SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
3. INVESTMENTS
In accordance with a trust agreement between Sunbeam and American Express Trust
Company ("AMEX" or the "Trustee"), AMEX holds the Plan's investment funds. Each
participant's basic and supplemental contributions, employer matching and profit
sharing contributions, and any income attributable to each is invested by the
Trustee in accordance with the election made by the participant among those
investment funds selected and authorized by Sunbeam.
A participant may select from active investment funds in any increments of 1% to
total 100%. Contributions for participants who do not make an election are
automatically invested in the American Express Trust Income Fund II. As of
December 31, 1998, the following options were available to participants.
AMERICAN EXPRESS TRUST INCOME FUND II - A collective fund which invests
in guaranteed investment contracts, bank investment contracts, stable
value contracts and short-term investments. As of December 31, 1998,
1,920 plan participants elected to invest in this fund.
AMERICAN EXPRESS TRUST SHORT-TERM HORIZON (25:75) FUND - A collective
fund seeking a conservative risk profile investing in other AMEX
managed investment funds. As of December 31, 1998, 2 Plan participants
elected to invest in this fund.
AMERICAN EXPRESS TRUST MEDIUM-TERM HORIZON (50:50) FUND - A collective
fund seeking to create a diversified portfolio with a conservative risk
profile for individuals with medium-term time horizons by investing
proportionately in other AMEX managed investment funds. As of December
31, 1998, 856 plan participants elected to invest in this fund.
AMERICAN EXPRESS TRUST LONG-TERM HORIZON (80:20) FUND - A collective
fund seeking to create a diversified portfolio with a moderate risk
profile appropriate for individuals with long-term horizons by
investing proportionately in other AMEX managed investment funds. As of
December 31, 1998, 3 plan participants elected to invest in this fund.
AMERICAN EXPRESS TRUST EQUITY INDEX FUND II - A collective fund that
seeks to achieve a rate of return similar to the Standard & Poor's 500
stock index by investing primarily in common stock with sector/industry
weighting similar to the S&P 500. As of December 31, 1998, 97 plan
participants elected to invest in this fund.
IDS BOND FUND - A diversified mutual fund seeking current income
through investments in bonds and other debt securities issued by U.S.
and foreign corporations and governments. As of December 31, 1998, 21
plan participants elected to invest in this fund.
IDS NEW DIMENSIONS FUND - An equity growth mutual fund invested in a
portfolio of common stocks with an investment objective of long-term
capital growth. As of December 31, 1998, 1,014 plan participants
elected to invest in this fund.
FRANKLIN SMALL CAP GROWTH FUND - A mutual fund seeking long-term
capital growth by investing primarily in common stock equity securities
of small capitalization growth companies. As of December 31, 1998, 62
plan participants elected to invest in this fund.
F-8
SUNBEAM CORPORATION
401(k) SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
3. INVESTMENTS - (CONTINUED)
JANUS WORLDWIDE FUND - A mutual fund seeking long-term growth of
capital in a manner consistent with the preservation of capital by
investing primarily in common stock of companies of any size throughout
the world. As of December 31, 1998, 107 plan participants elected to
invest in this fund.
SUNBEAM CORPORATION STOCK POOL - A pooled fund which invests in units
of Sunbeam common stock. As of December 31, 1998, 425 plan participants
elected to invest in this fund.
SUNBEAM CORPORATION COMMON STOCK - A non-participant directed fund
which consists of employer match and/or discretionary Sunbeam common
stock. As of December 31, 1998, 2,088 plan participants held
investments in this fund.
The fair values of AMEX Common Collective Trust Funds are obtained from their
respective audited financial statements. All other investments, excluding the
Participant Loan Fund, are stated at fair value based on quotations obtained
from active markets (such as national securities exchanges or certain dealers
making a market in over-the-counter securities) as of the last business day of
the year. Participant Loan Fund investments are carried at cost, which
approximates fair market value.
The Plan held the following investments with AMEX:
DECEMBER 31, 1998 DECEMBER 31, 1997
------------------------------------------- --------------------------------------------
NUMBER NUMBER
OF SHARES, OF SHARES,
UNITS UNITS
OR PAR VALUE COST MARKET OR PAR VALUE COST MARKET
-------------- ------------- ------------ -------------- ------------- ------------
Common Collective Trust Funds:
American Express Trust Income Fund II.. 1,800,171 $29,251,333 $33,198,755* 2,127,030 $32,368,132 $37,029,881*
American Express Trust Short-Term
Horizon Fund........................ 805 12,393 12,600 - - -
American Express Trust Medium-Term
Horizon Fund........................ 534,793 9,496,850 9,925,217* - - -
American Express Trust Long-Term
Horizon Fund........................ 822 16,282 17,408 - - -
American Express Trust Equity Index II... 28,760 861,570 955,019 - - -
------------- ------------ ------------- ------------
39,638,428 44,108,999 32,368,132 37,029,881
------------- ------------ ------------- ------------
Registered Investment Companies:
IDS Mutual Fund........................ - - - 871,206 11,544,847 12,089,235*
IDS New Dimensions Fund................ 589,399 14,290,229 17,001,203* 650,746 13,466,574 15,365,142*
IDS Bond Fund.......................... 4,847 24,813 24,763 - - -
Templeton Foreign Fund................. - - - 136,185 1,397,497 1,355,127
Franklin Small Cap Growth Fund......... 13,707 309,347 309,374 - - -
Janus Worldwide Fund................... 16,311 684,263 772,474 - - -
------------- ------------ ------------- ------------
15,308,652 18,107,814 26,408,918 28,809,504
------------- ------------ ------------- ------------
Sunbeam Corporation:
Sunbeam Corporation Common Stock....... 104,062 2,166,197 728,433 23,007 838,389 969,126
Sunbeam Corporation Stock Pool......... 344,676 967,670 955,097 163,070 2,257,413 2,494,681
------------- ------------ ------------- ------------
3,133,867 1,683,530 3,095,802 3,463,807
------------- ------------ ------------- ------------
Participant Loan Fund.................... 3,212,029 3,212,029 3,212,029 3,342,139 3,342,139 3,342,139
------------- ------------ ------------- ------------
$61,292,976 $67,112,372 $65,214,991 $72,645,331
============= ============ ============= ============
* Investments that represent 5% or more of the Plan's net assets available for
benefits at December 31, 1998 and 1997.
F-9
SUNBEAM CORPORATION
401(k) SAVINGS AND PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
4. LOANS AND WITHDRAWALS
LOANS
Effective January 1, 1995, participants are permitted to borrow up to 50% of the
vested interest in their Plan accounts up to $50,000. Prior to 1995, the Plan
did not allow for the granting of loans.
WITHDRAWALS
Participants may make withdrawals from the Plan in accordance with Plan
provisions and the IRC. Withdrawals of employee before-tax contributions are
permitted in cases of financial hardship, as defined in the Plan, and are
subject to Federal tax withholding requirements and penalties. Withdrawals are
taken pro rata from the investment funds.
5. DISTRIBUTIONS
A final distribution may be paid to a participant in the Plan, or to the
participant's beneficiaries, in the event of retirement, death, total and
permanent disability, or other termination of employment, in accordance with the
terms of the Plan. Participants who terminate employment and have account
balances of less than $3,500 receive final distributions of the vested value of
their accounts as soon thereafter as practicable. Distributions prior to
retirement, death or disability are subject to Federal income tax withholding
requirements and penalties.
Distributions for participants who terminate, retire, die or become disabled are
paid in a lump sum, unless the participant specifically requests installment
payments. Sunbeam and the participant are responsible for ensuring that the
minimum required distribution rules of the IRC are met by participants over age
70-1/2.
6. RECONCILIATION TO FORM 5500
The Plan's Form 5500 for the year ended December 31, 1998 includes contributions
receivable of $911,792 from the previous year in order to convert the Plan's
Form 5500 from a modified cash basis used in previous years to the accrual basis
of accounting used in the current year.
7. QUALIFICATION OF THE PLAN
The Plan has received a favorable determination letter from the Internal Revenue
Service dated September 21, 1995 stating that the Plan is designed in accordance
with the applicable provisions of the Internal Revenue Code. The Plan
administrator believes that the Plan is currently designed and being operated in
compliance with the applicable requirements of the Internal Revenue Code.
Accordingly, no provision for income taxes has been included in these financial
statements and participants are not subject to Federal income taxes on employer
or employee before-tax contributions or plan earnings until withdrawn under the
terms of the Plan.
8. SUBSEQUENT EVENT
In 1998, the Company acquired an indirect controlling interest in The Coleman
Company, Inc. and all the outstanding common stock of Signature Brands USA, Inc.
and First Alert, Inc. (the "Acquired Companies"). Effective January 1, 1999, the
Plan was amended to allow for the merger of the defined contribution plans of
the Acquired Companies into the Sunbeam Plan. Upon completion of the merger, the
plans of the Acquired Companies ceased to exist.
F-10
8. SUBSEQUENT EVENT
Effective January 1, 1999, the Plan was also amended for the following:
PARTICIPATION IN THE PLAN: Employees will be eligible to participate in
the Plan upon attainment of age 18 and upon completion of six months of
service, provided the employee has completed 500 hours of service
during this time period.
VESTING: Employer matching and discretionary profit sharing
contributions will vest at 20% per year based upon years of service.
F-11
SUNBEAM CORPORATION
401 (k) SAVINGS AND PROFIT SHARING PLAN
SCHEDULE II - ALLOCATION OF NET ASSETS AVAILABLE
FOR BENEFITS TO INVESTMENT PROGRAMS
Participant Directed
---------------------------------------------------------------------------
December 31, 1998 AMEX AMEX AMEX AMEX AMEX
Income Short-Term Medium-Term Long-Term Equity
Fund II Horizon Fund Horizon Fund Horizon Fund Index II
----------- ----------- ----------- ----------- -----------
ASSETS:
Beneficial interest in investment funds $33,198,755 $ 12,600 $ 9,925,217 $ 17,408 $ 955,019
Employee receivable 67,841 863 23,976 87 6,517
----------- ----------- ----------- ----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $33,266,596 $ 13,463 $ 9,949,193 $ 17,495 $ 961,536
=========== =========== =========== =========== ===========
Participant Directed
---------------------------------------------------------------------------
December 31, 1998 IDS New IDS Franklin Janus Sunbeam
Dimensions Bond Small Cap Worldwide Corporation
Fund Fund Growth Fund Fund Stock Pool
----------- ----------- ----------- ----------- -----------
ASSETS:
Beneficial interest in investment funds $17,001,203 $ 24,763 $ 309,374 $ 772,474 $ 955,097
Employee receivable 52,039 867 2,397 7,328 12,897
----------- ----------- ----------- ----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $17,053,242 $ 25,630 $ 311,771 $ 779,802 $ 967,994
=========== =========== =========== =========== ===========
Participant Non-Participant
Directed Directed
----------- -----------
December 31, 1998 Participant Sunbeam
Loan Corporation
Fund Common Stock Total
----------- ----------- -----------
ASSETS:
Beneficial interest in investment funds $ 3,212,029 $ 728,433 $67,112,372
Employee receivable -- -- 174,812
----------- ----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $ 3,212,029 $ 728,433 $67,287,184
=========== =========== ===========
Participant Directed
---------------------------------------------------------------------------
December 31, 1997 IDS
AMEX IDS New Templeton Sunbeam
Income Mutual Dimensions Foreign Corporation
Fund II Fund Fund Fund Stock Pool
----------- ----------- ----------- ----------- -----------
ASSETS:
Beneficial interest in investment funds $37,029,881 $12,089,235 $15,365,142 $ 1,355,127 $ 2,494,681
Employer receivable -- -- -- -- --
Employee receivable 90,150 35,073 57,670 8,992 15,928
----------- ----------- ----------- ----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $37,120,031 $12,124,308 $15,422,812 $ 1,364,119 $ 2,510,609
=========== =========== =========== =========== ===========
Participant Non-Participant
Directed Directed
----------- -----------
December 31, 1997 Sunbeam
Participant Corporation
Loan Common
Fund Stock Total
----------- ----------- -----------
ASSETS:
Beneficial interest in investment funds $ 3,342,139 $ 969,126 $72,645,331
Employer receivable -- 703,979 703,979
Employee receivable -- -- 207,813
----------- ----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $ 3,342,139 $ 1,673,105 $73,557,123
=========== =========== ===========
F-12
SUNBEAM CORPORATION
401(k) SAVINGS AND PROFIT SHARING PLAN
SCHEDULE III - ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
TO INVESTMENT PROGRAMS FOR THE YEAR ENDED DECEMBER 31, 1998
Participant Directed
----------------------------------------------------------------------
AMEX AMEX AMEX AMEX
Income Short-Term Medium-Term Long-Term
Fund II Horizon Fund Horizon Fund Horizon Fund
------------ ------------ ------------ ------------
ADDITIONS:
Contributions:
Employer $ -- $ -- $ -- $ --
Employee 803,398 905 46,188 129
Rollovers 105,517 -- -- --
------------ ------------ ------------ ------------
Total 908,915 905 46,188 129
------------ ------------ ------------ ------------
Investment Income:
Interest and dividends 1,710 -- -- --
Net realized gain (loss) on investments 429,279 -- (1,206) --
Net appreciation (depreciation) in fair value of
investments 1,584,572 206 428,857 1,126
------------ ------------ ------------ ------------
Total 2,015,561 206 427,651 1,126
------------ ------------ ------------ ------------
Total additions 2,924,476 1,111 473,839 1,255
------------ ------------ ------------ ------------
DEDUCTIONS:
Benefits paid to participants (7,180,274) -- (221,832) --
Administrative expenses (52,199) -- (408) --
Transfer to unrelated company benefit plans (616,080) -- -- --
------------ ------------ ------------ ------------
Total deductions (7,848,553) -- (222,240) --
------------ ------------ ------------ ------------
INTERFUND TRANSFERS 1,070,642 12,352 9,697,594 16,240
------------ ------------ ------------ ------------
Net (decrease) increase in net assets
available for benefits (3,853,435) 13,463 9,949,193 17,495
NET ASSETS AVAILABLE FOR BENEFITS,
Beginning of year 37,120,031 -- -- --
------------ ------------ ------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS,
End of year $ 33,266,596 $ 13,463 $ 9,949,193 $ 17,495
============ ============ ============ ============
Participant Directed
---------------------------------------------------------------------
AMEX IDS IDS New IDS
Equity Mutual Dimensions Bond
Index II Fund Fund Fund
------------ ------------ ------------ ------------
ADDITIONS:
Contributions:
Employer $ -- $ -- $ -- $ --
Employee 26,395 299,677 629,253 4,051
Rollovers 6,075 14,849 36,741 --
------------ ------------ ------------ ------------
Total 32,470 314,526 665,994 4,051
------------ ------------ ------------ ------------
Investment Income:
Interest and dividends 33 275,264 983,136 3,353
Net realized gain (loss) on investments 16,054 538,318 704,089 (227)
Net appreciation (depreciation) in fair value of
investments 87,080 -- 2,230,157 (450)
------------ ------------ ------------ ------------
Total 103,167 813,582 3,917,382 2,676
------------ ------------ ------------ ------------
Total additions 135,637 1,128,108 4,583,376 6,727
------------ ------------ ------------ ------------
DEDUCTIONS:
Benefits paid to participants (216,621) (1,288,318) (2,378,142) (58,947)
Administrative expenses (57) (754) (3,405) (29)
Transfer to unrelated company benefit plans -- (187,073) (196,255) --
------------ ------------ ------------ ------------
Total deductions (216,678) (1,476,145) (2,577,802) (58,976)
------------ ------------ ------------ ------------
INTERFUND TRANSFERS 1,042,577 (11,776,271) (375,144) 77,879
------------ ------------ ------------ ------------
Net (decrease) increase in net assets
available for benefits 961,536 (12,124,308) 1,630,430 25,630
NET ASSETS AVAILABLE FOR BENEFITS,
Beginning of year -- 12,124,308 15,422,812 --
------------ ------------ ------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS,
End of year $ 961,536 $ -- $ 17,053,242 $ 25,630
============ ============ ============ ============
SUNBEAM CORPORATION
401(k) SAVINGS AND PROFIT SHARING PLAN
SCHEDULE III - ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
TO INVESTMENT PROGRAMS FOR THE YEAR ENDED DECEMBER 31, 1998 - (CONTINUED)
Participant Directed
------------------------------------------------------------------
Templeton Franklin Janus Sunbeam
Foreign Small Cap Worldwide Corporation
Fund Growth Fund Fund Stock Pool
------------ ------------ ------------ ------------
ADDITIONS:
Contributions:
Employer $ -- $ -- $ -- $ --
Employee 9,070 18,897 46,522 167,235
Rollovers -- 18,228 102,883 29,482
------------ ------------ ------------ ------------
Total 9,070 37,125 149,405 196,717
------------ ------------ ------------ ------------
Investment Income:
Interest and dividends 46,766 4,425 3,017 989
Net realized gain (loss) on investments (61,476) (9,113) (47,070) (1,468,765)
Net appreciation (depreciation) in fair value of
investments -- (2,468) 67,883 (284,867)
------------ ------------ ------------ ------------
Total (14,710) (7,156) 23,830 (1,752,643)
------------ ------------ ------------ ------------
Total additions (5,640) 29,969 173,235 (1,555,926)
------------ ------------ ------------ ------------
DEDUCTIONS:
Benefits paid to participants (186,859) (7,355) (11,353) (71,844)
Administrative expenses (277) (12) (50) (337)
Transfer to unrelated company benefit plans (13,957) -- -- (19,749)
------------ ------------ ------------ ------------
Total deductions (201,093) (7,367) (11,403) (91,930)
------------ ------------ ------------ ------------
INTERFUND TRANSFERS (1,157,386) 289,169 617,970 105,241
------------ ------------ ------------ ------------
Net (decrease) increase in net assets
available for benefits (1,364,119) 311,771 779,802 (1,542,615)
NET ASSETS AVAILABLE FOR BENEFITS,
Beginning of year 1,364,119 -- -- 2,510,609
------------ ------------ ------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS,
End of year $ -- $ 311,771 $ 779,802 $ 967,994
============ ============ ============ ============
SUNBEAM CORPORATION
401(k) SAVINGS AND PROFIT SHARING PLAN
SCHEDULE III - ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
TO INVESTMENT PROGRAMS FOR THE YEAR ENDED DECEMBER 31, 1998 (CONTINUED)
Non-Participant
Participant Directed Directed
------------------------------ ------------
IDS Participant Sunbeam
Equity Loan Corporation
Select Fund Fund Common Stock Total
------------ ------------ ------------ ------------
ADDITIONS:
Contributions:
Employer $ -- $ -- $ 699,591 $ 699,591
Employee 5,001 -- -- 2,056,721
Rollovers 1,353 -- -- 315,128
------------ ------------ ------------ ------------
Total 6,354 -- 699,591 3,071,440
------------ ------------ ------------ ------------
Investment Income:
Interest and dividends 189 236,705 1,179 1,556,766
Net realized gain (loss) on investments 520 -- (146,444) (46,041)
Net appreciation (depreciation) in fair value of
investments -- -- (1,584,488) 2,527,608
------------ ------------ ------------ ------------
Total 709 236,705 (1,729,753) 4,038,333
------------ ------------ ------------ ------------
Total additions 7,063 236,705 (1,030,162) 7,109,773
------------ ------------ ------------ ------------
DEDUCTIONS:
Benefits paid to participants -- (503,150) (84,901) (12,209,596)
Administrative expenses -- -- (535) (58,063)
Transfer to unrelated company benefit plans -- (50,482) (28,457) (1,112,053)
------------ ------------ ------------ ------------
Total deductions -- (553,632) (113,893) (13,379,712)
------------ ------------ ------------ ------------
INTERFUND TRANSFERS (7,063) 186,817 199,383 --
------------ ------------ ------------ ------------
Net (decrease) increase in net assets
available for benefits -- (130,110) (944,672) (6,269,939)
NET ASSETS AVAILABLE FOR BENEFITS,
Beginning of year -- 3,342,139 1,673,105 73,557,123
------------ ------------ ------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS,
End of year $ -- $ 3,212,029 $ 728,433 $ 67,287,184
============ ============ ============ ============
F-13
SUNBEAM CORPORATION
401(k) SAVINGS AND PROFIT SHARING PLAN
SCHEDULE III - ALLOCATION OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS
FOR THE YEAR ENDED DECEMBER 31, 1997
Participant Directed
------------------------------------------------------------------
IDS
AMEX IDS New Sunbeam
Income Mutual Dimensions Corporation
Fund II Fund Fund Stock Pool
------------ ------------ ------------ ------------
ADDITIONS:
Contributions:
Employer $ -- $ -- $ -- $ --
Employee 1,203,733 475,164 786,199 225,362
Rollovers 20,924 37,923 95,190 88,953
------------ ------------ ------------ ------------
Total 1,224,657 513,087 881,389 314,315
------------ ------------ ------------ ------------
Investment Income:
Interest and dividends 212 1,746,940 1,158,114 5,659
Net realized gain on investments 724,939 301,459 1,151,491 876,665
Net appreciation (depreciation) in fair
value of investments 1,942,797 (58,052) 979,890 325,927
------------ ------------ ------------ ------------
Total 2,667,948 1,990,347 3,289,495 1,208,251
------------ ------------ ------------ ------------
Total additions 3,892,605 2,503,434 4,170,884 1,522,566
------------ ------------ ------------ ------------
DEDUCTIONS:
Benefits paid to participants (23,235,970) (3,433,690) (5,387,641) (497,264)
Administrative (113,544) (4,209) (4,728) (905)
Transfers to spun-off companies (149,960) (16,189) (176,574) (7,918)
------------ ------------ ------------ ------------
Total deductions (23,499,474) (3,454,088) (5,568,943) (506,087)
------------ ------------ ------------ ------------
INTERFUND TRANSFERS (1,341,329) 529,503 1,132,426 (789,070)
Net (decrease) increase in net assets
available for benefits (20,948,198) (421,151) (265,633) 227,409
NET ASSETS AVAILABLE FOR BENEFITS,
beginning of year 58,068,229 12,545,459 15,688,445 2,283,200
------------ ------------ ------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS,
end of year $ 37,120,031 $ 12,124,308 $ 15,422,812 $ 2,510,609
============ ============ ============ ============
SUNBEAM CORPORATION
401(k) SAVINGS AND PROFIT SHARING PLAN
SCHEDULE III - ALLOCATION OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS
FOR THE YEAR ENDED DECEMBER 31, 1997 - (CONTINUED)
Non-Participant
Participant Directed Directed
------------------------------ ------------
Sunbeam
Templeton Corporation
Foreign Loan Common
Fund Fund Stock Total
------------ ------------ ------------ ------------
ADDITIONS:
Contributions:
Employer $ -- $ -- $ 1,370,341 $ 1,370,341
Employee 121,614 -- -- 2,812,072
Rollovers 43,763 -- -- 286,753
------------ ------------ ------------ ------------
Total 165,377 -- 1,370,341 4,469,166
------------ ------------ ------------ ------------
Investment Income:
Interest and dividends 149,737 302,409 979 3,364,050
Net realized gain on investments 42,784 -- 14,080 3,111,418
Net appreciation (depreciation) in fair
value of investments (100,339) -- 129,287 3,219,510
------------ ------------ ------------ ------------
Total 92,182 302,409 144,346 9,694,978
------------ ------------ ------------ ------------
Total additions 257,559 302,409 1,514,687 14,164,144
------------ ------------ ------------ ------------
DEDUCTIONS:
Benefits paid to participants (979,923) (1,438,261) (58,516) (35,031,265)
Administrative (720) -- (132) (124,238)
Transfers to spun-off companies (5,131) -- -- (355,772)
------------ ------------ ------------ ------------
Total deductions (985,774) (1,438,261) (58,648) (35,511,275)
------------ ------------ ------------ ------------
INTERFUND TRANSFERS 481,867 (230,463) 217,066 --
Net (decrease) increase in net assets
available for benefits (246,348) (1,366,315) 1,673,105 (21,347,131)
NET ASSETS AVAILABLE FOR BENEFITS,
beginning of year 1,610,467 4,708,454 -- 94,904,254
------------ ------------ ------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS,
end of year $ 1,364,119 $ 3,342,139 $ 1,673,105 $ 73,557,123
============ ============ ============ ============
F-14
SUNBEAM CORPORATION
401(k) SAVINGS AND PROFIT SHARING PLAN
SCHEDULE III - ALLOCATION OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS
FOR THE YEAR ENDED DECEMBER 31, 1996
Participant Directed
------------------------------------------------------------------
IDS
AMEX IDS New Sunbeam
Income Mutual Dimensions Corporation
Fund II Fund Fund Stock Pool
------------ ------------ ------------ ------------
ADDITIONS
Contributions:
Employer $ 776,226 $ 311,494 $ 462,855 $ 80,487
Employee 2,015,248 705,983 1,106,386 203,465
Rollovers 131,371 17,236 124,518 75,232
------------ ------------ ------------ ------------
Total 2,922,845 1,034,713 1,693,759 359,184
------------ ------------ ------------ ------------
Investment Income:
Interest and dividends 378 1,201,884 602,269 3,337
Net realized gain on investments 430,159 135,771 710,957 242,935
Net appreciation in fair
value of investments 2,915,959 242,775 1,713,991 447,548
------------ ------------ ------------ ------------
Total 3,346,496 1,580,430 3,027,217 693,820
------------ ------------ ------------ ------------
Total additions 6,269,341 2,615,143 4,720,976 1,053,004
------------ ------------ ------------ ------------
DEDUCTIONS
Benefits paid to participants (8,115,096) (1,518,701) (2,250,866) (57,504)
Administrative (23,794) (2,652) (2,576) (162)
Transfers to spun-off companies -- -- -- --
------------ ------------ ------------ ------------
Total deductions (8,138,890) (1,521,353) (2,253,442) (57,666)
------------ ------------ ------------ ------------
INTERFUND TRANSFERS (124,215) (1,519,723) 534,044 581,951
Net (decrease) increase in net assets
available for benefits (1,993,764) (425,933) 3,001,578 1,577,289
NET ASSETS AVAILABLE FOR BENEFITS,
beginning of year 60,061,993 12,971,392 12,686,867 705,911
------------ ------------ ------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS,
end of year $ 58,068,229 $ 12,545,459 $ 15,688,445 $ 2,283,200
============ ============ ============ ============
SUNBEAM CORPORATION
401(k) SAVINGS AND PROFIT SHARING PLAN
SCHEDULE III - ALLOCATION OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS
FOR THE YEAR ENDED DECEMBER 31, 1996 - (CONTINUED)
Participant Directed
------------------------------
Templeton
Foreign Loan
Fund Fund Total
------------ ------------ ------------
ADDITIONS
Contributions:
Employer $ 76,488 $ -- $ 1,707,550
Employee 187,086 -- 4,218,168
Rollovers 23,548 -- 371,905
------------ ------------ ------------
Total 287,122 -- 6,297,623
------------ ------------ ------------
Investment Income:
Interest and dividends 68,986 413,787 2,290,641
Net realized gain on investments 24,354 -- 1,544,176
Net appreciation in fair
value of investments 125,607 -- 5,445,880
------------ ------------ ------------
Total 218,947 413,787 9,280,697
------------ ------------ ------------
Total additions 506,069 413,787 15,578,320
------------ ------------ ------------
DEDUCTIONS
Benefits paid to participants (241,329) (490,931) (12,674,427)
Administrative (187) -- (29,371)
Transfers to spun-off companies -- -- --
------------ ------------ ------------
Total deductions (241,516) (490,931) (12,703,798)
------------ ------------ ------------
INTERFUND TRANSFERS 347,100 180,843 --
Net (decrease) increase in net assets
available for benefits 611,653 103,699 2,874,522
NET ASSETS AVAILABLE FOR BENEFITS,
beginning of year 998,814 4,604,755 92,029,732
------------ ------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS,
end of year $ 1,610,467 $ 4,708,454 $ 94,904,254
============ ============ ============
F-15
SIGNATURES
THE PLAN. Pursuant to the requirements of the Securities Exchange Act of 1934,
the trustees (or other persons who administer the Sunbeam Corporation 401(k)
Savings and Profit Sharing Plan) have duly caused this annual report to be
signed on its behalf by the undersigned hereunto duly authorized.
SUNBEAM CORPORATION
401(k) SAVINGS AND PROFIT SHARING PLAN
By: Sunbeam Corporation, the Plan
Administrator
Dated: July 27, 1999
BY: /S/ KAREN K. CLARK
----------------------
Karen K. Clark, Senior Vice
President, Finance
EXHIBIT INDEX
EXHIBIT DESCRIPTION
- ------- -----------
23.1 Consent of Deloitte & Touche LLP
23.2 Consent of Arthur Andersen LLP