Document KJ6Ma6Eq2yZzg02bjb52qGbZX

N11789 ..... . . Item 1. Securities Reeftstered on f,,v M1 UJ Title,of Claes Cession Stock, without par value S^L- ~ (a) *h . of. each <ffnVtg, - `~m tdlcb rvgiet&a^ ` 'rv 1 J J 1 'l * 1 IV ^ 1 ' ;,J` BewXbtJc Stodc awehange. Item. 2. v, tober of BoM-sra of Sgalty Securities Title of Ctoas JfcBsber of holders . Canaan Stock, without par -value 20,019 -X& Item 3. - Parents mad Subsidiaries of Registrant, Ko;change sine previous report. : Item 4. >' 9 :lael3lii^8i: i ;i 1 ..; The registrant has filed with the Commiesion, pursuant to regulation X*]A and Rule X-14A-3, definitive copies of the proxy statement and annual report submitted to stockholders covering ; .the; mm period a that of this report. - Item 10. Financial Steteramfca sad Exhibits The following financial statements of the registrant ond*sub sidiaries ccaatoined in the annual report of the registrant to its stockholders for the year ended August 31, 1955(a period of 10 aontha), fimiiahed to tto Sec\rltim Ehschange CoBsaieslon purct^irt to the Coassissicm's Rule' 2-lUA3, are incorporated herein by reference: -s? y,Consolidated balance sheet - August 31, 19?5 " Statement' of/ consolidated income and earnings retained . - for.use in tbs business - Year ended August-'31, 1955 - .. / States to the financial statementb * and certain financial schedules, as listed on page F-l hereinafter, are submitted in the following section of this report. individual financial statements of the registrant have been omitted herefrom, as permitted by the instructions, as tbs regis trant ia primarily an operating company and the consolidated sub sidiaries sre totally held. --^ SIGMTU11ES :( Pursuant to tbs requirements of the Securities Exchange Act" of 193^, the registrant has duly caused this armuEl. report to be signed on its behalf by the undersigned thereunto duly authorised. THS 3LBJDKN COHBAMX v -%A is Astic ERNST & ERNST FINANCIAL DATA' FOR ANNUAL REPORT ON FORM 10-K THE GLIDDEN COMPANY AND SUBSIDIARIES Ten months ended August 31, 1955 * Consolidated financial statements have been incorporated herein by reference, as set forth in response to Item 10 of^this report. The following consolidated financial data i-s submitted herewith: Accountants' report - \ . Notes to consolidated financial statements Schedule V - Property, plant, and equipment Schedule VI- Reserves for depreciation, depletion, and amortization of property, plant, and equipment Schedule XII - Reserves - 'Schedule XVI - Supplementary profit and loss information The follotiffig financial statements and schedules for which provision is made in the applicable regulation of the Securities and Exchange Commission have been omitted for the reasons given: * Schedules I, II, III, IX, XIII, and XVII are not.required under the related instructions. r : ' Schedules IV, VII, VIII, X, XI,' XIV, and XV pertain to subject matter which is not present in the financial statements. ERNST a ERNST - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ' THE GLIDDEN COMPANY AND SUBSIDIARIES Ten months ended August 31?. 1955 Map Note A ~ Principles of consolidations The accounts of the Company and its two subsidiaries have been: consolidated in the financial statements as in the preceding year. Upon consolidation, all inter-company accounts and transactions have been-eliminated. Inter-company profit in the inventories is insignificant: in amount and has'not - been eliminated. Accounts of the Canadian subsidiary have been consolidated. . at par of exchange. >> . - - - The equity of the Company in the net assets of the subsidiaries at August 31, 1955, was $4,881,285 greater than the Company's investment in the subsidiaries, which difference has been included upon consolidation in earnings retained for use in the business. Note B - Inventories: Inventories at August 31, 1955, were classified as follows: Raw materials $13,278,490 . Supplies 1,200,645 In-process and.finished goods 19,222,325... TOTAL $33,701,460 Inventories used in computing cost of goods sold for the ten month period amounted to $32,454,157 and $33,701,460 at the beginning and end of the ten'month period, respectively. ' . Note C - Depreciation and related policies: The policy of the companies is to provide for depreciation by regular charges to income in amounts considered to be fair and^reasonable to amortize the cost of the depreciable properties over their estimated useful lives. Useful lives have been estimated on the basis of the expected wear, tear, obsolescence, and deteriation of the properties. In general, lives have been determined for specific assets or groups of assets in many specific locations, and therefore it is considered to be impracticable to set forth a summary of them, or of the depreciation rates. Rates have'been applied by the straight- .linetmethod .to-properties acquired prior .to January 1, 1954,; and:by the sum-of- thV-.years dig'i.ts rft^thod to properties acquired on or after that date. _ Expenditures for maintenance and repairs are charged to income. Expenditures for betterments and renewals are added to theproperty accounts. : The costs of properties retired or sold (less proceeds) charged against amounts accumulated for depreciation.if such retirements or .disposals were contemplated in the determination of depreciation rates. If . such retirements or disposals were not so contemplated, the costs of the assets and the related accumulations for depreciation are eliminated from the accounts and the resulting gains or losses are credited or charged to income.. , Note' D - Retirement, plans: < . ^ The companies maintain, "ancl absorb all the costs of .employee- retirement plans that provide benefits to eligible employees in-proportion to the employee's basic' earnings during stipulated periods of service and subject to certain rnaximums. At August 31, 1955, the unfunded liability for past- service cost under the plans;was estimated to be^$T7500,000 and the annual current^servic^co'St (which^does not include funding of, the past-service cost) was estimated to be $86,800. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-CONTINUED .. Note ,E ---Stock options:".. . .- Options to purchase shares of unissued Common Stock of the Company were granted to certain officers and employees on June'24, 1952, December 27, 1954, and March 14, 1955. Such options are exercisable within ten years from' date of grant. Option price may not be less than 95%%of the fair market price (mean between the highest and lowest selling prices on the New.York Stock Exchange) on the day the option is granted. Options granted during year , No. of shares Option price: Per share In aggregate Market price: ' 11. Per share In aggregate DATE OF GRANT JUNE 24,1952 DEC. 27, 1954 MAR. 14,1955 - . 42,500 1 38 $1,615,000 400 1 38 ,$ 15,200 $ : 39.88 $' 39.44 $1,694,900 $ 15,776 Options exercised: No. of shares . Range of market prices at dates options exercised Aggregate amount: At option price At market prices 1,860 . 35 39-3/8 to ' 41-1/4 to 43-5/8 43-1/8 $ 65,100 $ 1,330 1 76,974 $ 1,463 -0` -o~ / . -0- Options outstanding at Aug. 31, 1955 (total 71,130 shares) 28,265 42,465 . 400 > iy*' In addition to the outstanding options for 71,130 shares, 24,850 share's of unissued C&mmon Stock was reserved at August 31 ,---1955, for options thaf.-Ai.ay'be granted. -- ' . There have been no charges or credits to income accounts in connection with options transaction. I JHE GLIDDEN COMPANY AND SUBSIDIARIES Ten months ended August 31, -.955 ! ,---------------- :-------------------Tf---------------------------- ;---------------- . 1 A: i '.- i I]!1 v 11:;' . 1 COL.. > : . ; |;V CIA i _ .v i:. , ..j, . ' >:..'. * . {: -'li COL. B Balance at Beginning of Period COL. C Additions at Cost v Ore lands and leases Other land If. . , : Land improvements Railroad sidings' >' - /CV\- Buildings , Jj / Machinery anp equipment Furniture ar& fixtures ' Automotive Equipment' Construction!)in progress TOTALS I 229,535 2,307,429 630,971 . 200,666 ` '*9,504,967 31,373,253 2,133,104 231,352 _____ 5.95,$23. $57,207,100 Indicates red figures. ' Note A Represents net change in .account durir ,g--the ten month* period. Note BJ Represents reclassification oi certain asst Its. $ -o- ' - 476,301 11,022 507 , 4,428,239 1,733,439 208,229 6,027 1.291.986A , - ' $8,155,750 $ 2 5 ' $9 ; ` .:. ' J ' | - '* * ' ' ' I ** 1 J ' ,1 > 1 - .*- .* 7' . . : `' `.' ' M':': : ' '; v ' '..../; . , :V ; 1 T vj5 /' ; SCHEDULE'V--PROPERTY, PLANT, AND EQUIPMENT .' ( ........ ...B!iS'fc,as " - : ' i:: . : , ; :f'3 L?"''; : GLIDDEN COMPANY AND.SUBSIDIARIES <Tm-~mrvtHs ended August 31, 1955 COL. B y^.- c o l . c ' Balance at Beginning of Period Additions at Cost : TOTALS ' $ 229,535 2,307,429630,971 200,666 ' L-9,504,967 31,373,253 2,133,lp4 231,352 535.ML $57,207 ,l|00 $ . -o476,301 11,022 . 507 4,428,239 1,733,439 208,229 6,027 _U29L, 9.86A i, 155,750 COL. D Retirements i ; or Sales / - " '. | CO L. E Other Changes-- Debit and/or Credit*-- Describe COL. F , Balance at Close of Period 67,i84 75 1,878 225,985 561,352 71V557 13,437 ........ -o- $ 941,468 -o- 18,159B -o- 18,159#B ^27r,5'l9#B 271,519B $ 229,535 2,716,546' 660,077 199,295 23,689,062 32,273,821 2,541,295 . 223,942 _l.88Z.gQa $64,421,382 ViJ, mm SCHEDULE -VI--RESERVES FOR DEPRECIATION, DEPLETI , , j OF PROPERTY, PLANT, AND EQUIPM] j ." THE GLID. DHN COMPANY AND SUBSID*IARI r ' 'Ten months ended August 31, 1955 COL. A DESCRIPTION -O Ore lands and leases Land Improvements' Railroad sjidings Buildings , Machinery'and equipment Furniture, and fixtures Automotive equipment . '' ^j ` COL. B , Balance at Beginning of Period COL. C ADDITIONS (1) (2) Charged to Profit and Charged to Other Loss or Income Accounts--Descril !. T(DTALS. $ ; 167,910 336,237, 54,337 6,700,941' 14,317,305 948,625 `_____ L88.599 $22,713,954 r $ 1,624 36,527 4,383 563,256 1,461,537 151,456 16.177 $2,234,960 $ -0- 1,366 -0-o-0- 106.03C -0- $ 107,396 Note A - Represents reclassifiication of certain assets.?- *5.' ' 2 VI--RESERVES FOR DEPRECIATION, DEPLETION, AND AMORTIZATION OF PROPERTY, PLANT, AND EQUIPMENT THE GLfDDEN COMPANY AND, 'SUBSIDIARIES : j , : . r% -Ten months ended August 31, 1955 . ;, v |' ' ' ' V COL. B 'V - . ice at Beginning of Period COL. C ADDITIONS (1) (2) Charged to Profit and Loss or Income Charged to Other Accounts--Describe ; ' 167,910 4 1,624 336,237 36,527 54,337 4,383 6,700,941 14,317,305 1 563,256 1,461,537 948,625 151,456 188.599 16.177 *?22,713,954 $2,234,960 $ -O- 1,366A .-o- . -0. -o- 106.030A $ 107,396 COL. D DEDUCTIONS FROM RESERVES v. O) Retirements, Renewals, and - Replacement* (2) .. Other-- Describe. $ -o- - 66 910 101,404 ' 346,199 60,726 f 11.706 $ 521,011 $ , -O-0- -Olf366A 106,030A -0- ' -O$ 107,396 COL. E Balance at Close of Period $ 169,534 ' / 374,064 ^ .57,810- ^ 7,161,427. 15,326,613 1,145,385- ' 193.070 $24,427,903 .5 1 . s'.' t' to. W > Pi w co W w ..p D P W S o CO wT. zKUl a z < . Ul, 4 / ./ .0 to tO OCD X0 .)- . MOh `CH 06o1 TJ O* *D ' <CDD' SOUCZO , 5d) .Hc rI--oHI *Op 4<r.-o0. P">t* * co COoP O0P *QfHn) ^ ` to T> o <. Qrt X0>) 1 CD mM to 40~>) pai xo: 2o: 2A 4pc3 o* ' <S0 DULE XII--RESERVES COMPANY.AND SUBSIDIARIES s ended August 31, 1955 iL. B PiteBrieogdinning COL. C ADDITIONS 0) Charged to Profit and Doss or Income (2) Charged to Other Accounts--Describe .,789 . $ 85,344 COL. D Deductions from Reserves--Describe COL. E BalaonfcPeeart<ioCdloi se ' * 12?,443A 4,446b . $ 400,244 . ' ,* * ERNST 6 ERNST 4* SCHEDULE xVl--SUPPLEMENTARY PROFIT AND LOSS INFO THfe GLIDDEN COMPANY AND SUBSIDIARIES $-, ' Ten months ended August 31, 1955 -- . ,. 'V - COL: A . ITEM * .... i > V 1 ki ! . Maintenance and repairs , Depreciation and amortizatron^ Taxes: . .. Payroll / Real- and personal property and miscellaneous Management and service contract, fees Rents 'Royalties COL. B CHARGED DIRECTLY TO PROFIT AND LOSS To C<oDst of OpGeroaotdinsgSEoxldpeonrses w (2) Other $2,156,404 2,234,960 r-253,418 626.137 $ 879,555 --o44,451 130,171 H $ 94,943 -0- $. 182,969 256.482 $ 439,451 403,001 -0- u Vl^-SUPPLEMENTARY PROFIT AND LOSS INFORMATION ,'THfe GLIDDENCOMPANY AN0;SUBSIDIARIES : : '**Ten months ended August. 31', 1955 ! > COL. B CHARGED DIRECTLY TO PROFIT AND LOSS : OpGerToaootdinsC(g1oS)Esotxldpoefonrses Ij|| (2) Other $2,156,4.04 2,234,960 $V 253,418 626.137 >. $ 879,555 -0- 44,451 130,171 ^ $ 94,943 -0- $. 182,969 256.482 439,451 --o~ 403,001 COL. C ~ CHARGED TO OTHER ACCOUNTS (1) Account ... . (2) ' Amount COL. D Total ^ i s' , $ -0-0- $ . -0- -0- . $ -0- * -0'0? ' -0- -0- $2,251,347 2,234,960 '$ 436,387 "882.619 $1,319,006 <-0-- 447,452 130,171 s.