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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
ANNUAL REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1993 Commission file number 1-4416
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SPS TECHNOLOGIES, INC.
(Exact name of Registrant as specified in its Charter)
PENNSYLVANIA 23-1116110
(State of incorporation) (I.R.S. Employer Identification No.)
101 Greenwood Avenue, Suite 470 19046
Jenkintown, Pennsylvania (Zip Code)
(Address of principal executive offices)
(215) 517-2000
(Registrant's telephone number, including area code)
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE
SECURITIES EXCHANGE ACT OF 1934:
Title of Each Class Name of Each Exchange
Common Stock, Par Value $1.00 on Which Registered
Per Share New York Stock Exchange
Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K is not contained herein, and will not be
contained, to the best of Registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form
10-K or any amendment to this Form 10-K. /X/
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the Registrant was required to file such reports) and (2) has
been subject to such filing requirements for the past 90 days.
Yes X No
---------- ---------
The aggregate market value of the voting stock held by non-affiliates
of the Registrant at March 7, 1994 was approximately $111,554,994.
The number of shares of Registrant's Common Stock outstanding on March
7, 1994 was 5,107,292.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the 1993 Annual Report to Shareholders of the Registrant
are incorporated by reference in Parts I, II and IV of this Report.
Portions of the Definitive Proxy Statement of Registrant, if filed with
the Securities and Exchange Commission within 120 days after December 31,
1993, are incorporated by reference in Part III of this report. To the
extent not so filed, such information will be provided on a Form 10-K/A
filed with the Securities and Exchange Commission.
2
PART I
Item I. BUSINESS (Thousands of Dollars)
SPS Technologies, Inc. (the Company) was incorporated in Pennsylvania
in 1903. The Company is engaged in the design, manufacture and marketing
of high-strength precision mechanical fasteners, precision components,
fastening systems and assembly systems (fasteners), and superalloys in
ingot form and magnetic materials (materials).
During 1993, the Company proceeded with its restructuring plan by
reducing the number of non-direct employees, consolidating certain
fastener manufacturing operations in the United States, disposing of
certain distribution and marketing operations in Europe and placing the
corporate headquarters facility in Newtown, Pennsylvania and the Company
aircraft on the market for sale. Modifications from the 1992 plan included
the fourth quarter 1993 decision to retain the European industrial
fastener businesses in Coventry and Smethwick, England, and Barcelona,
Spain; the Unbrako fastener distribution business in Koblenz, Germany; and
the hard ferrite magnetic materials business in Sevierville, Tennessee. In
addition, the Company has decided to either sell the Assembly Systems
Division, which is a fastener segment product line, or liquidate the
computer-controlled fastener tightening systems part of this division and
only operate the hand wrenchs, spare parts and service portion. Additional
information regarding the restructuring plan is provided in Item 7,
"Management's Discussion and Analysis of Financial Condition and Results
of Operations" and in Note 3 to the Company's Consolidated Financial
Statements on page 9 in the 1993 Annual Report to Shareholders and is
incorporated herein by reference.
The Company is multinational in operation. In addition to 10
manufacturing plants in the United States, it operates seven manufacturing
facilities in four different countries: the United Kingdom, Ireland,
Australia and Spain. The Company also has a 50 percent interest in a
manufacturing operation in Adelanto, California, and minority interests in
manufacturing operations in Brazil and India. Marketing operations are
carried on by subsidiaries and an affiliate in five other countries.
The Company sells directly to original equipment manufacturers and
industrial, commercial and governmental users, and also sells through
independent stocking distributors and dealers. There were no changes in
these methods of distribution during 1993.
Principal fastener markets include aerospace, machine tool and
industrial machinery, automotive, and off-highway equipment. Principal
markets for materials include the precision investment casting, powdered
metal, aerospace, medical equipment, automotive, computer and
communications industries.
Principal fastener products are SPS(Reg) aerospace fasteners,
MULTIPHASE(Reg) alloy fasteners, and other aerospace fasteners;
UNBRAKO(Reg) brand socket screws, hex keys, dowel pins, shaft collars,
spring pins and pressure plugs; engineered fasteners for gasoline and
diesel engines, other critical automotive applications, and off-highway
3
equipment; and HI-LIFE(Reg) thread roll dies and other metal-working
tools.
Principal materials products are air and vacuum-melted iron, cobalt,
and nickel-based superalloys, including CMSX(Reg) single-crystal alloys;
and metallic and ceramic permanent magnets, wound and pressed powder
magnetic components, and magnetic ultra-thin foil and strip products.
The Company's business is highly competitive. Competition is based
primarily on technology, price, service, product quality and performance.
The Company believes that its favorable competitive position is based upon
its high-quality product performance and service to its customers,
supported by its commitment to research and development which has yielded
proprietary products to the extent indicated below.
No material part of the Company's business is dependent upon a single
customer. In 1993, the five largest customers accounted for 18 percent of
the Company's reported consolidated net sales.
The backlog of orders at December 31 was:
1993 1992
------------------------
Fastener segment ....................... $72,389 $65,152
Materials segment ...................... 16,584 19,328
------------------------
Total ................................ $88,973 $84,480
========================
No material portion of the Company's business in either segment is
seasonal.
The principal sources of raw materials for the fastener and materials
segments include major and specialty steel producers, and non-ferrous
metal producers, converters and distributors. The Company anticipates it
will have no significant problem with respect to sources or availability
of the raw materials essential to the conduct of its business.
The Company considers its proprietary position important to the two
segments of its business. During 1993, approximately 31% of Company sales,
principally in the fasteners segment, were related to patents and licenses
held, and manufacturing know-how. Generally, the patents and licenses of
the Company expire at various times over the next 17 years.
Total expenditures during 1993, 1992 and 1991 for Company-sponsored
research and development were $5,050, $6,604 and $6,930, respectively. In
1993, approximately 73% of the expenditures were for the Company's
fastener segment.
Capital expenditures for property, plant and equipment are planned at
$13 million in 1994, exclusive of any business acquisition.
There were approximately 3,038 and 641 persons employed by the Company
at December 31, 1993 in the fastener and materials segments, respectively.
4
For financial information concerning industry segments and the foreign
and domestic operations, see Note 17 to the Company's Consolidated
Financial Statements on pages 13 to 15 in the 1993 Annual Report to
Shareholders, which is incorporated herein by reference.
Item 2. PROPERTIES
The Company owns or leases the manufacturing properties described
below. All properties are in good condition.
Location
Owned Square Feet
--------------------------------------------------
Jenkintown, Pennsylvania............ 683,000(a)
Cleveland, Ohio .................... 413,000(a)
Santa Ana, California............... 305,000(a)(i)
Salt Lake City, Utah ............... 86,000(a)
Marengo, Illinois .................. 442,000(b)
Muskegon, Michigan ................. 110,000(b)
Norfolk, Nebraska .................. 103,000(b)
Sevierville, Tennessee ............. 65,000(b)
Ogallala, Nebraska ................. 26,000(b)
Anasco, Puerto Rico................. 129,000(a)(j)
Coventry, England .................. 240,000(a)
Birmingham, England ................ 137,000(a)
Leicester, England ................. 88,000(a)
Melbourne, Australia ............... 44,000(a)
Leased Lease Expires Square Feet
------------------------------------------------------------
Walled Lake, Michigan April 30, 1994 21,000(a)
Leicester, England (c) (d) 90,000(a)
Shannon, Ireland (e) (f) (g) 233,000(a)
Barcelona, Spain April 20, 2005 129,000(a)
Tarragona, Spain (h) 11,000(a)
----------
(a) Fastener segment
(b) Materials segment
(c) Lease for 38,000 square feet expires January 12, 1997.
(d) Lease for 52,000 square feet expires July 1, 1995.
(e) Lease for 54,000 square feet expires April 1, 1996.
(f) Lease for 75,000 square feet expires November 15, 2010.
(g) Lease for 104,000 square feet expires November 13, 2010.
(h) Lease expires November 1, 1994, with biennial renewal options.
(i) Approximately 70,000 square feet used for manufacturing purposes, with
the remaining 235,000 square feet held for lease.
(j) Closed and held for sale.
The Company also owns a 63,000 square-foot corporate headquarters
facility in Newtown, Pennsylvania. This facility is currently held for
sale. Industrial Development Revenue Bonds were issued to finance the
acquisition and improvement of the Salt Lake City, Utah, facility. These
bonds are collateralized by a first mortgage on this facility and a bank
letter of credit.
5
Item 3. LEGAL PROCEEDINGS
For discussion of legal proceedings, see Note 14 to the Company's
Consolidated Financial Statements on page 12 in the 1993 Annual Report to
Shareholders which is incorporated herein by reference.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matter was submitted to a vote of security holders during the
fourth quarter of 1993.
6
EXECUTIVE OFFICERS OF THE REGISTRANT
All executive officers of the Company are named below and are
appointed by the Board of Directors. The date that each officer was first
appointed to his present position is indicated. No officer listed was
appointed as a result of any arrangement between him and any other person
as that phrase is understood under the Securities Exchange Act
regulations. No family relationship exists among the executive officers of
the Company.
Name Experience and Position Held Age
-------------------------------------------------------------------------------------------------------
Charles W. Grigg Chairman and Chief Executive Officer since December 1993. Previously, 54
President and Chief Operating Officer, Watts Industries, Inc., a
manufacturer of valve products, since 1986.
Harry J. Wilkinson President and Chief Operating Officer since April 1986. Previously, 56
Group Vice President, Aerospace, Automated Systems and Industrial
Products since March 1985. Previously, Group Vice President, Domestic
Operations since January 1984.
Harry W. Antes Vice President, Research and Development since September 1986. 63
Previously, Director of Research since 1980.
John P. McGrath Vice President, Corporate Services since August 1988. Previously, 54
President, Latin America/Pacific Operations since 1982.
Aaron Nerenberg Vice President, Corporate Counsel and Secretary since August 1988. 53
Previously, Corporate Counsel and Secretary since July 1986. Previously,
Associate Counsel and Patent Counsel since 1981.
John M. Morrash Treasurer since February 1988. Previously, Controller, Automated Systems 39
Division since 1984.
Charles E. Myslinski Director, Corporate Credit and Collections and Assistant Secretary since 64
February 1988. Previously, Treasurer and Assistant Secretary since
December 1979. Previously, Assistant Secretary since 1978.
William M. Shockley Corporate Controller, since September 1992. Previously, Assistant 32
Controller since November 1991. Previously, Manager, Coopers & Lybrand
since 1988.
7
PART II
Item 5. MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED SHAREHOLDER
MATTERS
Information regarding the principal markets on which SPS Technologies
common stock is traded, the high and low sales price for the stock on the
New York Stock Exchange for each quarterly period during the past two
years, the quarterly cash dividends declared by SPS Technologies with
respect to its common stock during the past two years, and the approximate
number of holders of common stock at March 7, 1994 is included under the
caption entitled "Common Stock Information" on page 21 in the 1993
Annual Report to Shareholders and is incorporated herein by reference.
Item 6. SELECTED FINANCIAL DATA
A summary of selected financial data for SPS Technologies for the
years and year ends specified is included under the caption entitled
"Selected Financial Data" on page 23 in the 1993 Annual Report to
Shareholders and is incorporated herein by reference.
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Information regarding SPS Technologies financial condition, changes in
financial condition and results of operations is included under the
caption entitled "Management's Discussion and Analysis of Financial
Condition and Results of Operations" on pages 24 to 27 in the 1993 Annual
Report to Shareholders and is incorporated herein by reference.
Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Consolidated Financial Statements for SPS Technologies included on
pages 4 through 19 in the 1993 Annual Report to Shareholders, together
with required supplementary data that is included in Footnote 23,
"Summary of Quarterly Results" on page 20 in the 1993 Annual Report to
Shareholders, are incorporated herein by reference.
Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.
PART III
Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
(a) Identification of directors:
Information regarding directors is incorporated by reference to
the Definitive Proxy Statement, Election of Directors, if filed with
the Securities and Exchange Commission (SEC) within 120 days after
December 31, 1993. To the extent not so filed, such information will
be provided on a Form 10-K/A filed with the SEC.
8
(b) Identification of executive officers:
Information regarding executive officers is contained in Part I of
this report (page 5).
Item 11. EXECUTIVE COMPENSATION
Information regarding executive compensation is incorporated by
reference to the Definitive Proxy Statement, Executive Compensation and
Board Meetings, Committees and Compensation, if filed with the SEC within
120 days after December 31, 1993. To the extent not so filed, such
information will be provided on a Form 10-K/A filed with the SEC.
Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
Information regarding security ownership of certain beneficial owners
and management is incorporated by reference to the Definitive Proxy
Statement, Ownership of Voting Securities, if filed with the SEC within
120 days after December 31, 1993. To the extent not so filed, such
information will be provided on a Form 10-K/A filed with the SEC.
Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
None.
PART IV
Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K
(a) Documents filed as part of this Report:
1. The Consolidated Financial Statements and related Notes set forth
on pages 4 through 19 of the 1993 Annual Report to Shareholders are
incorporated by reference (See Exhibit 13). The Report of Independent
Accountants, which covers both the Consolidated Financial Statements
and the financial statement schedules, appears on page 11 of this
report.
2. Financial Statement Schedules:
The following supplemental schedules are located in this report on the
pages indicated.
Page
----
V Property, Plant and Equipment 12
VI Accumulated Depreciation and Amortization of Property,
Plant and Equipment 13
VIII Valuation and Qualifying Accounts 14
IX Short-Term Borrowings 14
X Supplementary Income Statement Information 14
9
Schedules other than those listed above are omitted for the reason
that they are either not applicable or not required or because the
information required is contained in the financial statements or notes
thereto.
3. Exhibits:
3a Amended and Restated Articles of Incorporation. Exhibit 3a to the Annual
Report on Form 10-K for the year ended December 31, 1990, is hereby
incorporated by reference.
3b By-Laws as amended, effective April 29, 1993. Exhibit 3 to the Quarterly
Report on Form 10-Q for the quarter ended March 31, 1993, is hereby
incorporated by reference.
4 Rights Agreement dated November 11, 1988, is incorporated by reference
to Form 8-K filed November 17, 1988. Amendment No. 1 to Rights Agreement
dated January 22, 1991, is incorporated by reference to Form 8-K filed
January 25, 1991.
10a SPS 1988 Long Term Incentive Stock Plan as amended, effective February
2, 1989. Exhibit 10a to the Annual Report on Form 10-K for the year
ended December 31, 1988, is hereby incorporated by reference.
10b SPS Exempt Employees Savings and Investment Plan as Amended and
Restated, effective November, 1991. Exhibit 10b to the Annual Report on
Form 10-K for the year ended December 31, 1991, is hereby incorporated
by reference.
10c SPS Technologies, Inc. Non-Exempt Employees Savings and Investment Plan
as Amended and Restated, effective November, 1991. Exhibit 10c to the
Annual Report on Form 10-K for the year ended December 31, 1991, is
hereby incorporated by reference.
10d SPS Technologies, Inc. Management Incentive Plan as Amended and
Restated, effective March 7, 1991. Exhibit 10d to the Annual Report on
Form 10-K for the year ended December 31, 1990, is hereby incorporated
by reference.
10e SPS Technologies, Inc. Executive Incentive Plan as Amended and Restated,
effective March 7, 1991. Exhibit 10e to the Annual Report on Form 10-K
for the year ended December 31, 1990, is hereby incorporated by
reference.
10f Retirement Benefit Agreement, dated February 28, 1979. Exhibit 10f to
the Annual Report on Form 10-K for the year ended December 31, 1991, is
hereby incorporated by reference.
10g Fee Arrangement with Former Directors, effective November 29, 1984.
Exhibit 10g to the Annual Report on Form 10-K for the year ended
December 31, 1990, is hereby incorporated by reference.
10
10h Form of Employment Agreements between SPS Technologies, Inc. and certain
employees, as amended and restated effective December 14, 1992. Exhibit
10h to the Annual Report on Form 10-K for the year ended December 31,
1992, is hereby incorporated by reference.
10i SPS Technologies, Inc. Executive Deferred Compensation Plan, as amended
and restated, effective December 14, 1992. Exhibit 10i to the Annual
Report on Form 10-K for the year ended December 31, 1992, is hereby
incorporated by reference.
10j SPS Technologies, Inc. Executive Deferred Compensation Plan II, as
amended and restated effective December 1, 1993.
10k SPS Technologies, Inc. Supplemental Executive Retirement Plan, as
amended and restated effective December 14, 1992. Exhibit 10k to the
Annual Report on Form 10-K for the year ended December 31, 1992, is
hereby incorporated by reference.
10l Employment Agreement between SPS Technologies, Inc. and Charles W.
Grigg, Chairman and Chief Executive Officer, effective December 1, 1993.
10m Form of Indemnification Agreements between SPS Technologies, Inc. and
officers and directors dated February 2, 1987. Exhibit 10m to the Annual
Report on Form 10-K for the period ended December 31, 1992, is hereby
incorporated by reference.
10n Split Dollar Insurance Agreements regarding certain officers and
directors effective April 2, 1990, and November 27, 1991. Exhibit 10n to
the Annual Report on Form 10-K for the year ended December 31, 1991, is
hereby incorporated by reference.
10o SPS Technologies, Inc. Senior Executive Severance Plan, effective
December 14, 1992. Exhibit 10o to the Annual Report on Form 10-K for the
year ended December 31, 1992, is hereby incorporated by reference.
10p Agreement with Retiring Executive, approved December 14, 1992. Exhibit
10p to the Annual Report on Form 10-K for the year ended December 31,
1992, is hereby incorporated by reference.
10q SPS Technologies, Inc. Benefit Equalization Plan, as amended and
restated effective December 14, 1992. Exhibit 10 to the Quarterly Report
on Form 10-Q for the quarter ended March 31, 1993, is hereby
incorporated by reference.
11 Computation of dilution (anti-dilution) of earnings per share resulting
from common stock equivalents.
13 1993 Annual Report to Shareholders (With the exception of the
information expressly incorporated by reference in items 1, 3, 5, 6, 7,
8 and 14 of Form 10-K, the 1993 Annual Report to Shareholders is not
deemed "filed" with the SEC or otherwise subject to the liabilities of
Section 18 of the Securities and Exchange Act of 1934).
21 Subsidiaries of the Registrant.
23 Consent of Independent Accountants.
11
(b) Reports on Form 8-K:
Form 8-K was filed on December 1, 1993 stating that the Board of
Directors had elected Charles W. Grigg as Chairman of the Board and
Chief Executive Officer, and a Director of the Company, effective
December 1, 1993.
12
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
SPS TECHNOLOGIES, INC.
------------------------------------
(Registrant)
DATE: March 28, 1994
/s/ WILLIAM M. SHOCKLEY
------------------------------------
William M. Shockley
Controller
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of
the registrant and in the capacities and on the dates indicated.
Signature Title Date
-------------------------------------------------------------------------------------
/s/ CHARLES W. GRIGG Chairman, Chief Executive March 28, 1994
-------------------------------- Officer and Director
Charles W. Grigg (Principal Executive Officer)
/s/ HARRY J. WILKINSON President, Chief Operating March 28, 1994
-------------------------------- Officer and Director
Harry J. Wilkinson
/s/ WILLIAM M. SHOCKLEY Controller (Principal March 28, 1994
-------------------------------- Financial Officer)
William M. Shockley
/s/ F. JAMES SKINNER Director March 28, 1994
--------------------------------
F. James Skinner
/s/ ALLEN C. MENKE Director March 28, 1994
--------------------------------
Allen C. Menke
/s/ PAUL F. MILLER, JR. Director March 28, 1994
--------------------------------
Paul F. Miller, Jr.
13
REPORT OF INDEPENDENT ACCOUNTANTS
THE SHAREHOLDERS AND BOARD OF DIRECTORS
SPS TECHNOLOGIES, INC.:
We have audited the consolidated financial statements of SPS
Technologies, Inc. and subsidiaries as of December 31, 1993 and 1992 and
for each of the three years in the period ended December 31, 1993, which
financial statements are included on pages 4 through 19 of the 1993 Annual
Report to Shareholders of SPS Technologies, Inc. and subsidiaries and
incorporated by reference herein. We have also audited the financial
statement schedules as listed in Item 14(a)2 of this Form 10-K. These
financial statements and financial statement schedules are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements and financial statement
schedules 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 consolidated financial position of
SPS Technologies, Inc. and subsidiaries as of December 31, 1993 and 1992,
and the consolidated results of their operations and their cash flows for
each of the three years in the period ended December 31, 1993, in
conformity with generally accepted accounting principles. In addition, in
our opinion, the financial statement schedules referred to above, when
considered in relation to the basic financial statements taken as a whole,
present fairly, in all material respects, the information required to be
included therein.
As discussed in Note 2 to the consolidated financial statements, the
Company changed its method of accounting for income taxes and
postretirement benefits other than pensions in 1992.
/s/ COOPERS & LYBRAND
-------------------------
COOPERS & LYBRAND
2400 Eleven Penn Center
Philadelphia, Pennsylvania 19103
March 2, 1994, except as to Note 12 for
which the date is March 21, 1994
14
SCHEDULE V
SPS TECHNOLOGIES, INC. AND SUBSIDIARIES
Property, Plant and Equipment
Years ended December 31, 1993, 1992 and 1991
(Thousands of dollars)
Depreciation is provided substantially on a straight-line basis over
the estimated useful lives of the respective assets, generally as follows:
Buildings, 5 to 50 years; Machinery and equipment, 3 to 20 years.
Balance at Other changes Balance at
beginning Additions Retirements ------------------- end
CLASSIFICATION of year at cost or sales Debit Credit of year
-----------------------------------------------------------------------------------------------------------------------
Year ended
December 31, 1993:
Land .................................. $ 4,787 $ $ 26 $ 14(a) $ 19(b) $ 4,487
269(c)
Buildings ............................. 39,722 52 1,259(a) 77(b) 40,841
11(c)
Machinery and equipment ............... 136,360 903 14,767 8,586(a) 4,017(b) 127,318
253(c)
Construction in progress ............. 9,046 11,345 27(c) 12,729(a) 7,526
163(b)
------------------------------------------------------------------------
Total property, plant
and equipment ...................... $189,915 $12,248 $14,845 $10,139 $17,285 $180,172
========================================================================
Year ended
December 31, 1992:
Land ................................. $ 4,946 $ 59(d) $ $ $ 178(b) $ 4,787
40(c)
Buildings ............................ 38,939 765(d) 51 992(a) 697(b) 39,722
226(c)
Machinery and equipment .............. 138,096 2,694(d) 12,076 15,748(a) 8,201(b) 136,360
99(c)
Construction in progress ............. 10,026 10,937 146 11,440(a) 9,046
331(b)
------------------------------------------------------------------------
Total property, plant
and equipment ...................... $192,007 $14,455 $12,273 $16,839 $21,113 $189,915
========================================================================
Year ended
December 31, 1991:
Land ................................. $ 7,518 $ $ 41 $ 32(a) $ 30(b) $ 4,946
2,533(c)
Buildings ............................ 45,780 24 688 2,467(a) 113(b) 38,939
8,531(c)
Machinery and equipment .............. 141,763 2,162 12,561 8,542(a) 1,231(b) 138,096
579(c)
Construction in progress ............. 13,135 8,932 43 40(b) 12,027(a) 10,026
11(c)
------------------------------------------------------------------------
Total property, plant
and equipment ...................... $208,196 $11,118 $13,333 $11,081 $25,055 $192,007
========================================================================
----------
The 1992 and 1991 amounts have been reclassified (see Note 3 to the
Consolidated Financial Statements)
(a) Transfers among accounts and miscellaneous adjustments, net.
(b) Translation adjustments.
(c) The May 3, 1991, balances, and subsequent additions, retirements and
translation adjustments reclassified to net assets held for sale.
(d) Amounts include $59 of land, $757 of buildings and $2,084 of machinery
and equipment related to the acquisition of a bonded magnet business
in December 1992.
15
SCHEDULE VI
SPS TECHNOLOGIES, INC. AND SUBSIDIARIES
Accumulated Depreciation and Amortization of Property, Plant and Equipment
Years ended December 31, 1993, 1992 and 1991
(Thousands of dollars)
Balance at Other changes Balance at
beginning Additions Retirements ----------------- end
CLASSIFICATION of year at cost or sales Debit Credit of year
----------------------------------------------------------------------------------------------------------------------
Year ended
December 31, 1993:
Buildings .................... $23,214 $ 1,601 $ 43 $ 69(a) $ $24,480
29(b)
194(c)
Machinery and
equipment .................. 75,123 12,043 14,096 3,005(a) 186(c) 68,734
1,517(b)
--------------------------------------------------------------------------------
Total accumulated
depreciation and
amortization ............... $98,337 $13,644 $14,139 $4,814 $ 186 $93,214
================================================================================
Year ended
December 31, 1992:
Buildings .................... $21,955 $ 1,758 $ 28 $ 251(b) $ 7(a) $23,214
227(c)
Machinery and
equipment .................. 74,352 12,172 11,512 4,952(b) 5,017(a) 75,123
46(c)
--------------------------------------------------------------------------------
Total accumulated
depreciation and
amortization ............... $96,307 $13,930 $11,540 $5,430 $5,070 $98,337
================================================================================
Year ended
December 31, 1991:
Buildings .................... $23,256 $ 1,695 $ 279 $ 38(b) $21,955
2,679(c)
Machinery and
equipment .................. 74,447 13,089 10,834 1,031(a) 74,352
971(b)
348(c)
--------------------------------------------------------------------------------
Total accumulated
depreciation and
amortization ............... $97,703 $14,784 $11,113 $5,067 $96,307
================================================================================
----------
The 1992 and 1991 amounts have been reclassified (see Note 3 to the
Consolidated Financial Statements).
(a) Transfers among accounts and miscellaneous adjustments, net.
(b) Translation adjustments.
(c) The May 3, 1991, balances, and subsequent additions, retirements and
translation adjustments reclassified to net assets held for sale.
16
SPS TECHNOLOGIES, INC. AND SUBSIDIARIES
Years ended December 31, 1993, 1992 and 1991
(Thousands of dollars)
SCHEDULE VIII
Valuation and Qualifying Accounts
Balance at Additions Balance
beginning charged to costs Translation at end
Description of year and expenses Other adjustment of year
-------------------------------------------------------------------
Year ended December 31, 1993:
Allowance for doubtful receivables ............ $1,329 $668 $ (780)(a) $ (32) $1,185
=================================================================
Year ended December 31, 1992:
$ (570)(a)
Allowance for doubtful receivables ............ $1,609 $485 $ (27)(b) $(168) $1,329
=================================================================
Year ended December 31, 1991:
$(1,016)(a)
Allowance for doubtful receivables ............ $1,939 $796 $ (74)(b) $ (36) $1,609
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The 1992 and 1991 amounts have been reclassified (see Note 3 to the
Consolidated Financial Statements).
(a) Uncollectible receivables less recoveries.
(b) Transfers to net assets held for sale.
17
SCHEDULE IX
Short-Term Borrowings
Maximum Average Weighted
Category Weighted amount amount average
of aggregate Balance average outstanding outstanding interest rate
short-term at end of interest during the during the during the
borrowings period rate period period (b) period (c)
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December 31, 1993
Notes payable to banks(a) .......... $2,262 10.7% $ 3,200 $2,668 15.0%
December 31, 1992
Notes payable to banks(a) .......... $2,110 15.6% $ 4,300 $2,007 10.1%
December 31, 1991
Notes payable to banks ............. $4,021 13.9% $11,223 $7,988 15.7%
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(a) For general terms, see Note 10 to the Consolidated Financial
Statements.
(b) The average amount outstanding during each period is the average of
the month end balances.
(c) The weighted average interest rate during the period is determined by
dividing interest expense related to short-term borrowings by the
average of the month end balances.
18
SCHEDULE X
Supplementary Income Statement Information
Charged to Costs and Expenses
ITEM 1993 1992 1991
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Maintenance and Repairs .......... $9,096 $8,925 $9,920
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