Document 151OdKpJ1Vjq00b0dwJbYQzXZ

sssmmm am mmtmx camwm Washington 2$, B. e. 10-k AMUAL HEPO0T Pursuant to Ssetloa 13 or 15(d) of the .. Securities Exchange Act'of. 193^ / . For the Fiscal Year xm . , ; *_ ., ' > 1396 Union CoHsaeree Building, Cleveland, Ohio "" '--1\ ^ , .wV Ci.'S SlfiLii igetglttfeL^gtig.Ml m MmngaA Cl) gttio of class (2) tom, of eachaxtJtifflge . am thick roststoffed :: Oman - Stock, without par value Bar York,:Stock- Esehas* Item g. Stotor off Beiders as Equity Securities. Title of Class Bomber at holdarB Coman. Stock, without pm' -mXm XS,700 ' sv>^ ' <&$, . - l-K> Item 3* Barents and Subsidiaries of Bogistmat. Bo changes since previous report. Items k- 9 Induelvc. The registrant hoe filed vith the Caanisalan, pursuant-to itogul&tion X-lA and Buie X-14A-3, definitive copies of the proxy statement end annual report submitted to stockholders covering the sees period ns th|Rt of this report. 4 -item 10.: PlMaoiel Stnteaaaatfl and Exhibits. ; . , -.. . / Financial statements, separately hound, accompany this report. & CIGKmiEBS Pursuant to the requirements of the Securities Exchange Art of 1934, the registrant has duly caused this annual, report to ho signed on its behalf hy the undersigned thereunto duly *thcr^cd>^^ THE QI.TPPEW COMPANY . ':.n ,, kebruivy 26, 195&., :n. aA Cl hVd I ' VK fG . ^0 2LOCK ft81 SEbVfcUWEHJ. Ofc ERNST & ERNST wmmm '-A * * ,, _ / ^% a , , - -4 ,,*c \ r- ''": tT fr ITEM 14(a) * FINANCIAL: STATEMENTS ;MD: SCHEDULES SECURITIES AND EXCHANGE- COMMISSION FORM- 10-K _ . FOR CORPORATIONS V \ ..XF/A {'A A. ANNUAL REPORT ; A 'v ;T;A FOR YEAR ENDED OCTOBER 31? 1953 K^AA'^W ;; , . CLEVELAND, OHIO FINANCIAL STATEMENTS AND SCHEDULES The following financial statements and schedule are included: Consolidated balance sheet Statement of consolidated income Statement of consolidated surplus ^ Schedule" V - Property,' plant, and equipment . Schedule VI - Reserves for depreciation, depletion, and amortization'of property, plant, and equipment Schedule XII - Reserves Schedule XIII - Capital shares Schedule XVI - Supplementary profit'and loss information. The following financial statements'and schedule 'have been omitted for the reasons given: Schedules I, II, III, IX, and XVII are not required under the regulations. "' Schedules IV, VII, VIII, X, XI, XIV, and XV have been omitted"because the subject matter is not present. The Glidden Company (parent Company): All of the conditions outlined under Item 1. (c) of I ' instructions as to financial statements'for Form 10-N annual report are met in this instance and the financial statements and schedule^ of.the parent Company have been omitted.. .. ERNST & ERNST ; r-j CONSOLIDATED BILANCE SHEET ' -1 THE GLIDDEN COMPANY AND SUBSIDIARIES , .October 31, 1953 -\ &.****&* ^ % '-,V fSBSji -:~mm - ASSETS CURRENT ASSETS Cash . ^ Trade accounts receivable Less allowances-Schedule XII $17,970,535 . -459.010 Inventories: Raw materials In-process and finished goods $15,173,983' 16,830,^22 Supplies Principal raw materials are stated 1,302.653 at cost (last-in, first-out t----. method) which .did not. exceed re- ... . .. placement market;,,other items are . stated at the lower of cost (accumulated average) or re placement market Other current notes .and accounts : receivable, advances and investments . - TOTAL CURRENT.ASSETS $ 8,-230,545 17,511,525, ' 33,307,053 ^,380*345 429,973 OTHER ASSETS Cash surrender value of lifeinsurance Prepaid insurance and expenses Miscellaneous notes and accounts receivable, advances and investments SfPt 840,678 84o,2_?0 404.41T :, 035,3^1 V PROPERTY. PLANT'. AND EQUIPMENT '.Land., -at cost-Schedule V .2 ' /Buildings,.($17,560,535), .'- machinery-."'.; yv-?-^w'and*':;equipitf^t,:'.Vat.v'Cost-iSchectuie.-Y. . -. ' r` M. ' ' *' ' "'"''"Less accumulated depreciation, r -:depletion,^'and 'amortization-1 ' 'Schedule. VIV L'/b :.:4.-y >,,5; "".;V72 $ 3,207,499' 52,3.20,074 $55,527,573 ,22, ,293, ,3.3Q <, afssssj 3^r sssiaifl^^ ijfiiSi^^lteilii^llsii;^ * iL .CURRENT LIABILITIES LIABILITIES. CAPITAL STOCK. AND SURPLUS .Notes payable to banks: Short-term loans Serial notes maturing July 1, 1954- Accounts payable: ' <%> 0 4,000,000 1,500.000 Trade accounts Wages and commissions Payroll and withholding taxes Abcrued liabilities: 0 4-,267,^92 1,679,^75 ' 411,315 JK}Insurahcb.:;royalties, and miscellaneous other items ^Taxes," other than taxes on income ' .Interest, Federal, state, and dominion taxci on income-estimated 0 1,163,692 505.369' 2XJ.01 LONG-TERM DEBT* ,; O ' .--..S' V"-0 pr"'; TOTAL CURRENT LIABILITIES' id Serial notes payable,' mate 01.500,000 . annually in 1950 and 1956, and 0*+, 000,000. in 1957,- interest 30 $ 5,500,000 6,353,282 1,692.I62 ...- 7,62^832 21,425,27o - '7,000,000 CAPITAL STOCK AND SURPLUS Capital stock-Schedule XIII: j tid Common without par value: . .' hid ! ' Authorised 3,000,000 shares (100,000 \d shares, reserved: for, sale to key 'd , employees) . / Issued including treasury shares, ' 2,291,330 shares-. Stated ;C'APiital;'\;h.,v'7id;.h:'-:I.;:7 ' Capital surplus-see statement h ' / - ./ r- Vi " .7--"'.' -.'-V V or,E.arned``i6:a^lus."i^iinc,lud^ $4,'05t>, 570 of ^-,5 :'-surplus;.pfv Canadiaiidsubsidiary).- "see statement . . 733,033 . .'Less 53t treasury shares, at cost ... -... 12,222 $ 5,723,325 ^26425., 6,42 1532 603; 907 ltl.,220,35.It / 74.324.321 1^102, 749,597 .S.ee.'-principle&:-:-o.f;-on.s'blidation'/andj.no'tes;?,..:to.-fiiianciai.. . statements. ' ., -. 4. ERNST & ERNST. " STATEMENT OF CONSOLIDATED INCOME^ f/ THE GLIDDEN COMPANY AND SUBSIDIARIES Year ended October 31, 1953 Net sales Cost of goods sold,' selling, adminstrati've' and general expenses-Notes A, .B, and C: Cost of goods sold ^$170,492,456 Selling j-,administrative and general expenses 2^,636,577 Provision for doubtful accounts ($233,273) less recoveries (0135,843) on accounts charged off in prior: years-Schedule XII,;; 102,430 $211,758,522 j ,.12143.1,^3 : Other income / .ub4, vu $ 15,192,01 . Interesji,expense 7 ; $~l?:i|^272. r'.: INCOME BEFORE TAXES ON INCOME Taxes on income-estimated: Federal normal tax and surtax $ 7,150,000 .. Dominion and state' taxes 575.000 -ZJZil^QOO CONSOLIDATED.. NET-..INCOME , ^ 7,109,272 See principles of ".consolidation and, notes . to financial statements. ,1 ERNST ft ERNST \ STATEMENT 0? CONSOLIDATED SURPLUS THE GDIDDEH COMPANY AND SUBSIDIARIES Year ended October 31, 1953 ' . CAPITAL SURPLUS /.''".V 5 Balance at November 1, 1952, and October 31, .1953 EARNED SURPLUS Balance at November 1, 1952 Add net income for the year / Deduct dividends ;paid-$2 .per, share Balance at October 31, 1953 Sec .principles of consolidation and- notes to financial, statements. ERNST & ERNST _ PRINCIPLES OF CONSOLIDATION AND NOTES TO FINANCIAL STATEMENTS ' THE GLIDDEN COMPANY AND. SUBSIDIARIES October 31, 1953 Principles" of consolidation: (1) Inventories include small amounts of inter-company profit'' which are not significant anc^have not been eliminated -because it is not considered practicable- to do so. (2) The companies included In the consolidated financial statements at October 31, 1953, arid for the year then ended are the same companies included In the financial statements for the preceding year. (3) Inter-company sales have been eliminated. (4) The assets and liabilities of.the Canadian subsidiary are included In the consolidated balance sheet in, Canadian funds. (5) The equity of the parent Company In the,net. assets of. the" Canadian subsidiary, as shown by its books at October 31, 1953, exceeds the parent - Company's_ in- - . vestment by the amount of $4,056,570. This excess represents the undistributed earnings of the sub- ... sidiary since date of acquisition, and is included in earned surplus in the consolidated.statements. - - The equity of the parent Company.in the net ,assets of E.; W. Colledge, G.S.A., Inc., as shown by its books at ' October 31, 1953, exceeds the parent Company's invest- _ ment by the amount of $56,869. This excess represents the undistributed earnings of the subsidiary since - date of acquisition, and is included In earned surplus in the consolidated statements.' / '.'Note's: . :,. ; ' - Note A - Inventories at the beginning and end of. the year, , ;v^i-n .the.respective'amounts of $43,457,154 and $33,307,058, used " ,v.>-'-`in 'the -computation of: cost of goods sold have been priced, as ' described- under the inventory caption of the consolidated' . s':<'-balance sheet. - - Note B - Depreciation, depletion, obsolescence, and___ amortization: -\ The policy of the companies with re'spect to depreciation is to provide amounts considered by the manage ment, as fair and reasonable to cover wear, tear, obsolescence, and deterioration of the property by application of specific rates on the straight-1-iiie method. The companies do not : / believe it .practicable .to set forth' the rates in use as .such rates ..have been determined generally as applicable to" specific assets or- group - of assets in' various geographical- locations. NOTES TO FINANCIAL STATEMENTS-CONTINUED * Note B - Continued: Expenditures for maintenance and repairs are . charged to;operating expenses, and expenditures -for better ments and .renewals are: added to the property-accounts. - The costs of properties retired or sold (less proceeds) are charged against amounts accumulated for deprecia tion if such retirements or disposals were contemplated in the ' determination of depreciation rates. If such .retirements or disposals were not contemplated, the asset accounts and related accumulations -for depreciation are reduced by amounts included therein for such - properties;' gains or losses resulting from' such transactions are included in current income. Note C - Reference is made to Schedule. XVI for information as to charges for maintenance, and repairs, depreciation and amortization, taxes (other than, taxes on income), management and service contract fees, rents and royalties. - Note D--The companies have in effect noncontributory retirement plans for employees. Eligibility provisions, of such plans specify minimum ages and periods of service. .* Benefits, are in.proportion to basic: earnings for the ten highest consecutive years of service with certain maximum ` stipulations. The present program for funding past service costs is based oh a. ten-year per^o^..: On this basis ;of. .. funding, the period of vhich^nay t5e increased at the .option f of the companies,; the total annual cost, is estimated, to be. approximately $922,000, comprising $432,000 for past service and $+90,000 for current service. costs.. At October'31, 1953, the .unfunded portion of past service- costs I s - estimated to >e.': approximately .$2,.768,000. ______ -. v COL. A CLASSIFICATION V . ------; ------ -- Ore lands and leases Land J Land impr ovement Railroad |`sidings Building ;Ma chinery and ea6ipment .Furniture and fixtures. Automotiv equipment .. Construct^ on in progress SCHEDULE V--PROPERTY, PLANT, AND EQUIPMEN t h e ; GLIDDEN': COMPANY AND SUBSIDIARIES i.-r { '" ' a ;. Year fended October 31, 1953 COL. B Balance at Beginning of Period COL. C Additions at Cost TOTAL $ 235,635 2,117,576 542,969 184,218 16,860,434 >30,353,678 1,695.388 288,850 644,936 $52,923,684 -o- 257,418 60,901 19,478 780,972 2,044,007- 332,570 28,233 625,994 4,149,573 --RESERVES FOR DEPRECIATION, DEPLETION, AND AMORTIZATION OF PROPERTY, PLANT, AND EQUIPMENT THE G.LIDDEN COMPANY AND SUBSIDIARIES Year ended October 31? 1953 ,.B Beginning rlod 7h,010 55,371: 45,256 02,729 90*783 52,138 09,543 29-, 830 COL. C ADDITIONS CD (2) ChaLrogbedi otor Profit and Income' Charged to Other - Account*--Describe . , <i!' v -Or 4l,ll4 ; .5,418 485', 379 1,492,887 124,631; ___ 35.7 7 5JL $2,185 ,184 V. $ -o-o--o-o- ,-0- -0- -o- -o- COL. D COL. E , DEDUCTIONS FR(^M RESERVES 0): Retirement*, Renewale.and .. ( Replacement* ` (2) . Others-- Deecrlbe ' Balance at Cleee of Period < ir -o!3?122*. 356 '52,089 1,155,535 164,325 52_aloi_ $1,421,684 $ -O- $ 174,010 T -o- 299,607 "O-- 50,318 -o- 6,236,019 ; -o-o- 14,528,135 812,444 _______ -o- --. 192,797 $ -o- ,$22,293,330 1 svu; ?sr7'"7^'..............j i. --,if ._- _____ __ ____________ _ ni : _____ '.................. & ' \ . '1 . '.... *W ' . i.! J,' . ' . . j .'.'.I 1 *r?... ' t H J3D.ULE V--PROPERTY, PLANT, AND EQUIPMENT i '. ' ".' :. if; .' t V.C . / ; . THE ^GLIDDEN.COMPANY AND SUBSIDIARIES r i. .- . It; " .; ; : s^-Ye'ar .exided iiibctober 31, : 1953 i , ' COL. B COL. C Balance . of at Begins Period in*'.- Additions at Cost IOTA] ^35 $ 23 5, 2,117, 576 542, 969 184, 218 16,860, 434 *' 30,353, 678 1,695, 388 288, 850 644, 936 $52,923. 684 $ -c257,418 60,901 19,478 780,972 2,044,007 332,570 28,233 625,994 $4,149,573 '.. 1 s. COL. D Retirements ' it or Sales COL. E Other Changes-- Debit and/or Credit*-- Describe COL. F . Balance at Close :> of Period $ -071 ,0-0001,432 80,871 r, 184,072 '. 201,054 71,255 -0- $1,545,684 $ t\ e -O- -O- -0-0-0-0-0 -0-0- -0- $ 235,635` 2,367,994 603,870 202? 264 C1C- > 17,560,535- 31,213,613 1,826,904 245,828 1,270,930, $55,527,573? ; .v-4;5'.V: 7.. o:v4 ' 11` ` 1 ~ i < -4^ v 4. a ,, i ^ ft ^ . ^ 7 * t# ~ ERNST A ERNST I SCHEDULE VI--RESERVES FOR DEPRECIATION, DEPLETION, AN OF PROPERTY, PLANT, AND EQUIPMENT 1 . " `_ ... . 1 . 'i '.'f * ...> ' THE GLIDDEN COMPANY AND SUBSIDIARIES 1 , Year ended October 31, 1953 " ' COL. A DESCRIPTION COL. B COL. C 'V. ' ADDITIONS | Balance at Becinnlng .- of Period . Charted to Profit and ' Loaa or Income ' . 1 Charted to Other Account*--Deecribe /'//M/-V/ ' Ore lands and le.ases ` { Land improvements ' Railroad, sidings ' . Buildings . Machinery and equipment" Furniture and fixtures. Automotive eauipment | |* ` '' . /TOTAL '$ 174,010 255,371 45,256 5,302,729 /i 14,190-, 783- V 852,138' \ 209,543.: , 5^,529,830' * Indicates red .figure; $ , . -o-' j 4l>,ll4 ' ' .5,418 485,379- 1,492,887 124,631; 35,755 $2,185,184 _ $ -0-0- , ` -O.............. -b- -0- ` -0- ,$ -0- . I ERNST ft ERNST o o G*H o *rt W ou wq &| :Q C<s5y'. O CO ' P H, M O' o P-I: C/3 :W > (O \s\ Hco . o\- Q w M3 P CO i--i co o X ,w.' 14: D Q 4MH ' u to >1 : ov cd p. O' +> C3 c op o CD P - rq ' CD o. Prah -c3 ' CD tH m .j o o H H-i E-i `-'C2 *C o 6 oQ *a Ai w> c MP O -C o < TJ G tt> UO5 go KH Q. G ou ^o qlu3, owto 43 cj bt _c "5 c `M'S U o, m'Caj *P. aj R-t uO C cq -4 Zo H HPa p5 o CJ U C/J a n 1AII - P-.- :IIII' ''v. 1 II ' I! II I! II ^ vo ccqo iIiI 11^- COH II c^- \arssopO-". iIurL-r^/J-,. CM . II P II *0. if II II II II l 0 IIII 1 II II II II II IIIIII. IIII co II II CM *V IIII co: II CO CM . r--I CO Cs l1--evI CD ;:h w CO sCO o cq 4a P pi 3 o. Mao C-H o O a CD ,. P Q H V :M to W-P CO &-P a s'. : -. fiT o , p o CJ . T3 w rls'1: ' f~c P o O, p p. p El CM 03 to fl) P -P M a fH-t a ~'U 'O CD S' . t> o a a*. -p a a c \i ss a `s cm O 03 0) CD o H. ..CD OP P p rl O T.J P CD s:(aDD O f-i " <0 P -sii--HCDI '-T* t ' '.pin t/) -P ; 9 ' 3 o oo o t/1 o rH : - 1 .ffr <D ; -P ,9 ; <D *P , r--i i il , 1 . " ' . V V ' -V ' ' , 5 "r` : 1 - 1 . * : -V : -r/' -a .. a . .. ..IV fcRNSTA ERN0T 1, : P-11 SCHEDULE Xni--CAPITAL SHARES : --r- /* - ^ THE. GLIDDEN COMPANY AND SUBSIDIARIES October 31, 1953 ll:'111141' 311: llll-v; - 1. ' / COL. A COL. B COL. C COL. D CO NAME OP ISSUER AND TITLE OP ISSUE - Number of Share* Authorized by Charter ... NUMBER 07 SHARES INCLUDED IN COL. C WHICH ARE Number of Share* I**ued ^ 1.1- (1) . and Not Retired or Cancelled Held by or for Account oflRiner Thereof. r:\ v ' -1 ' . (2) Not Held by or for Account of Iieuer Thereof SHARES OUT SHOWN ON OI RELATED BA .UNDER i "CAPITA! 0) . Number TITE GLIDDEN COMPANY : , Common without, par - value V 5 "s u b s id ia r ie s .c o n s o l id a t e d The Hidden Company, Lfcd-'.-cOminpii'j:.'par:.-'..:. :,value $100.00 a share 3,000,000 2,291,330 : 536. 1 2,290,79** 2,291,330 ;V'. ill 1, 200 . 1,200 ;; Rone 4,200 ' /;'l : None - , ll./E.. W. Colleage, G.S.A., 1 . Inc. - common; par 11 value $100.00 a share 50 50 3 - ` 4-7 ; L'one 1;;11 '11-1 1:1 7':;:1 1" MilllTl'llil . ' ' ->V' 1 , -v > ` ` <0r- '-'Ill/ 'I :.ll ' 'vlL ;':1. 11111 / v Ivvi / ; ... ;-> x. I'l; il t ]-J_L;=:l < 341vl?::|l;; f:CVilli'': V7:`>7L;-:.''' ,,;U"v- * j ;1 'illn li'i u** v ! 1;1 vi'-.'l ll;l \ '* t I'i'- 4' r^'r ' &' - '< ' A ;v'- i* ' . H v:- 4ll;'il-1l t V iHH Pilfer'' IfS-fiSCN >? n3iv L.D IF SHARES ) IN COL. C K ARB (2) Not Held by or for Account of leaner Thereof COL. E SHARES OUTSTANDING AS SHOWN ON OR INCLUDED IN RELATED BALANCE SHEET UNDER CAPTION r.APTTAT. RWARF.K" 0) Number (2) Amount it Which Carried COL. F " . COL.H NUMBER OF SHARES HELD BY AFFILIATES FOR WHICH STATEMWERNPTff.SWATTRWE FILED <i) Persons .. Included in s Coniolldated Statements (2)^ Others Number of Shares Reserved for Officers and Employees COL. Q Number of Shares Reserved for Options, Warrants, . Conversions, and Other Rights 2,290,79!+ 2,291,330 S<t^1 rJT j nnQ oorf. Hone : " : none; ' 100,000:. None ' 4,200 ; None j -0- 4, 200 . None' :: None : 2 None.. h? jTonc-> . --0-. v:; 47.-' ' None i,'o:ic . .None : '. , .0/ - 2v''*- . 2-3:3'HSf Nf'2 2\-33:i'Y'' V. - ; "33s-"-- J'!:33il3i|;33; ;2, -. . 1. . /. v'l ,v. . j 3f-. YI-aN 2333:32223y3; Y'Y-';:% V. i ... . f-- . .Y.2.2; 2' V.. ; '\2- ' V. ; . to ... ~ -c. . - 4 > " 1 . *! ' ' . T""7 ' -if ' % SCHEDULE XVI--SUPPLEMENTARY PROFIT AND LOSS INFC THE 'GILDDEN COMPANY AND SUBSIDIARIES . " -V 1 COL. A !i \\ 5 ' v-" ' ......... - ;| V . - . X - * |- 5 ITEM : . . ; ' j -"v,t Year ended October 31, 1953 COL. B CHARGED DIRECTLY TO PROFIT AND LOSS To C(1o)st o,f Goods Sold or Operating Expenses (2) Other , Maintenance and repairs Depreciation and amortization - "Taxes: . . j.......... Payroll ] Real and personal and miscellaneous Rents-Note A `Royalties Management and service contr'act fees $2,203,753 2,185,184 ,$ 235,629 615,303 $ 850 932 121-, 87*!* :114',186 -o- $ 108,037' --o-- $ 168,984; 402.134 $ ffi TiS 420,034 -o-o- : Note A - The aggregate 'annual amWnt of .rentals upon real property now lea the -Company and its subsidiaries5 for tjbrms .expiring more than three years after date of filing is hot significant,; . -v- 1- 00 l-1 31-1 XVI--SUPPLEMENTARY PROFIT AND LOSS INFORMATION THE GILDDEN COMPANY 4ND: SUBSIDIARIES ; : | :' ;' j4 Year ended October 31, 1953 !. .B CHARGED DIRECTLY TO PROFIT AND LOSS To C(Dost o,f Goods Sold or Operating Expenses (2) . Other $2,203,753 2,185,184 108,037 -o- $ 235,629 6liaQl_. 850,932 121,874% -llM,l86 -a-. ' $ 168,984 "T$f 4c50m721.,11t31i 4s!' 420,034 - O'- -o- COL. C CHARGED TO OTHER ACCOUNTS a> Account (2) Amount P *$ $ -O- -O- -o-o- o- -o-o-o- mt of .rentals upon real, property now leased to >rms expir.ing more than three.years after the COL. D Total $2,311,790 2,185,184 $ 404,613 1.017.4-37 - 1I>*22^50 . 541,908 114!186 * -o-