Document KJ7dk05wJG9pZNegnwd14OEOw
N11792
For the Fiscal Year Ended August 31* 1959
.^r - S`?"'T ' ..-v, ' &
THE GLIDDM, CCMPAHY
900 Union Comerce
Cl^eland, Ohio*
4, -
i
J.'SGSI X. ixtcum>3.g Jncrfc;Jdg ycnat \*u
(1) TilJj o of class",
-
Comma Stocky par value $10 per share
43A$ Sinking Fund ]fcbenfcure Dae November T, 1983
\tysA.
<Jf *
iCtiiriri.T s
Erase of each eachaasgs. ::
can ffaich fogiateBWL v1
Mnr teak Stock Esctesge-
sk* V' Hew York Stock Esshenge
Item So Ruaber of Holders of Equity Securities
Title of Class
.Hunbar of Holders
Ccramon Stock, per value $U> per share
20,993
k-3/4^ Sinking Fuad Debenture Ike Hovtsaber X, 1983
Unknown `
Item 3. Parents and Subsidiaries of Registrant There has `been no ~ change In the list as last previously reported.
Items k"9 Inclusive
/. ___
The registrant has filed with the Commission pursuant to Regulation X-lt end Rule ji*2A&-3, definitive copies of the proxy statement and annual report submitted to stodt&alfiero covering .
-the .same period as that of this report.
Item 10. Financial Statements and Exhibits
(a) Financial Statements:
The following financial statements of the registrant end .
subsidiaries contained in the annual report of the registrant to its
stockholders far the year ended August 31, 1959 furnished to the
Securities and krehenge (kmtf&ieeloa pursuant to the Coamission'o
Rule X-lM-3, are incorporsted herein by reference: .
Consolidated balance sheet - August 31, 1959* .
Statement of ccmsoiidated income and earnings retained for use in the business - Year ended August 31* 1959*
Rotes to the financial steteiBjsnts^^nd^certain financial schedules, go .listed in-page F1 hereinafter, are submitted in j$uch following section of,this report.
Individual financial statementa-of .the registrant have been omitted herefrom, as permitted by the Instructions, as the registrant is primarily an operating coqpany and the consolidated
subsidiary is totally held..
\u) xasoxorcs:
Attached hereto end inaesporeted herein by reference as a psrt of this report er the ftolloarlsg: `
Exhibit A Kroflb-eherlng and deferred contingent' cora-
peaimtien - Agreement between regietreat. cad JS% Dwifiht
JoySe*-'V.
: ..v' :;'
Kt&ibit B - Deferred contingent compensation Agreement and Mr. Alexander D. Duncan.
Exhibit C - Deferred contingent coa&eneetlon Agreement between registrant hi Mr, Harvey L* Sjjiaghter.
Exhibit D - Deferred contingent oasqpenaatlon Agreeoent Wfcween registrant and Mr. John H. eeka.
SIQHAIURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorised.
THE GUDEEN COMPANY
v/-
. December'28," 1959*
K. K. Dutton Assistant Secretary
FINANCIAL DATA FOR ANNUAL REPORT ON FORM 10-K THE GLIDDEN COMPANY AND CANADIAN SUBSIDIARY Year ended August 31, 1959' '
'
:M.- '
Consolidated financial statements are incorporated herein by
-reference, as set forth in response>-to- item--,LO of--this-report-.--------
herewith*
The following consolidated financial .information is submitted
^'-?.:;'tAccduht&ntS;r'-repdxt f
- :'
' f.'r
- 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 other schedules (Nos. I, II, III, IV, VII, VIII, IX, X,XI, XIII, XIV, XV, and XVII) for which provision is made in the applicable
regulation.of the Securities and Exchange Commission are not required.under the related instructions or are inapplicable, and therefore have been om.itted.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS '
,-'
(Reference is made to the printed annual report for information oh Chemurgy properties, dividend restrictions, stock .options,
. ' and retirement plans)
THE GLIDDEN COMPANY AND CANADIAN SUBSIDIARY
;
- Year end&d August 31, 1959
, Note A - Principles of consolidation
''--y.y.
^
,, , .. . . . .... .
.....
. .. .. . .....
The accounts of the Company-and its Canadian subsidiary'have been
v - consolidated" in ?the.;ifinancial- statements;.'as in the,preceding; year. Upon consoli-
* ::;V -
'.dation,. all inter-company'accounts 'and transactions have `been.' eliminatedi ; Inter-
'.^ company profit ; in :the inventories is insignificant ' in',amount;and has; not^been \/. ;:y;|M
eliminated.:;' f
- t"-. V:. i4-:':y'^;tS|
Accounts of the; Canadian, subsidiary have been, stated in United
States dollars, on a 'dollar-for-dollar basis. The equity of the Company. in the , `V `. f. it
net assets of the subsidiary at August 31, 1959, was $5,072,840 greater than the `,^-;y
..investment in the subsidiary, which-difference has been included upon consoli-
,
dation in earnings retained.for use in the business.
. .v'-y-
The Company has one unconsolidated subsidiary, which is not signi- .
.Vt v
. ficant as to assets, operations, or. investment therein.
'
- ; . ,, V,\-
Note B - Stock Options (supplementing information in printed annua 1 report.) .
- .v: ,,
Information relative to options granted, exercised,.and canceled
.during the year and options outstanding at the end, of the year ,is /summarized in ' -/>; >;
the following table:
-V-;'. -ji ;V
NUMB'ER
% ; V;
4y:i
; V.'-4-..': ,`-:L
f'
; OF
OPTION PRICE
' MARKET PRICE '
- i- ' : SHARES RANGE PER SHARE TOTAL " . RANGE PER SHARE TOTAL
Options granted;:' v ` *7,0^0 $41-50 .;-
: $ 292,575 $43.50 . v
\ $306,675 .''V.'/.
-.Options _exercised,. ^\9,^804 35.00; to $38-00 . 351,033 39.0(T'to $49-75 451,095
... Options,'.canceled
2,240 35.00'to' 38.00
83,430 ..
' 1; : -
, . Options outstanding
" 'it'
at year-end.
82.640 -35-00 to 41-50 .-3,088,383
-.-yv-
,.;V .
There, have been no charges or credits to income in connection with
the options.
:
Note C - Cost of products sold
"
Inventories .(generally aj^the lower,,of accumulated-average cost,or replacement market) used.in computing cost of products sold for the year amounted ..to;, $36,7.71,649:113 nd $39,588,415-sat -the beginning anc^end of-the year, respectively.
NOTES TO CONSOLIDATED FINANCIAt' STATEMMfSr- CONTINUED:
Note D - Ifepfeciatlorr and related policies .---...................
.. ... - .....
The policy of the companies is to provide for depreciation by
.systematic charges to income in `amounts considefbd'Ho-be ..fair and-reasonablei'to .yv
. .amortize the cost-of the depreciable properties over their estimated useful lives;'---
Usefur\liyes;have been vest ima ted on the basis of theanticipated wear, tear,
Vtv
;.obsplescence,:.and- deterioration of the properties. As to principaiVasset class!- `
fications, depreciation rates are predicated, in general, on useful lives of 20 :
Vto: 25; yearsVtorVmaphihery and1; equipment and of 40 years . for buildings. Cost1-of -.V.V
.Vgraih-storage.:;^
(pertaining to the Chemurgy Division) placed; in service
since 1954 is being ^amortized over a period of five'years. Rates have been
` . "!
applied .by the straight-line method to properties acquired prior to January 1,
1954,. arid to grain storageVfaciliti.es acquired after that date, and by the sum- V-
qf-the-years-digits method; to other properties acquired oh o`r after .that date,
IHg
. Expenditures for maintenance and repairs are charged`to income. Expenditures for betterments and fenewals are added to the property accounts.
.. - "v 'V;
-- The costs, of properties retired or sol'd (less proceeds) are charged
^:gai'hsTimountS'.ac:eUmOlat.ed 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 ac
cumulations for depreciation are'eliminated from the accounts and the resulting.
gains or losses are credited or charged to income.
/
Note E - Supplementary profit and loss information
V . ^ V: ..
..
Reference is marie to Schedule XVI for information' regarding
^
maintenance and repairs, depreciation and amortization, taxes other than taxes.*
on income,; rents *-;ahd . royalties.
4 &
..... .... ...... , .
.
, C :o
I
-" re l*!
WJHT JtRHrr
SCHEDULE V--PROPERTY, PLANT, AND EQUIPMENT
\ THE;'.GL'IDDEN COMPANY AND CANADIAN SUBSIDIARY'
'
\ Year ended August 31, 1959
-'
"I.;-'
------------ ---- -------- -------- -
:----- ----------
COL. A.
CLASSIFICATION
. .,, -
. :
,,tt i
COL. B
COLIC
Balance at Beginning of Period
. Additions1** Copt;!;-
Properties utilised in Glidden operations:
Ore lands and*leases
Other land ; .
V'\. v-.;-
. Land improvements > ;/.
Railroad sidings
Buildings A
' Machinery and equipment , >
Furniture and fixtures
.-Automotive equipment
:
Coristructaop in progress's'
Chemurgy .propsrties [led s.ed f::to. Centra 1.Soya Co.
Land
;j.
Land improvements. '
- Railroad- sidings
Bui ldings j.
. Machinery a nd e.quipment
Furniture: and' fixtures .
Automotive equipment
TOTAL PF
:
*
Note - Addition's to proper ty, plant,'and equipment during the year amounted to $7,607,001,
or sales amounted to $813,907 The`information required by Columns B, C, D,, and E, is.therefore
because neither the additions n or the deductions amounted to more than' 10$ of tHe closing balarn
` \ ERNST & ERKtfT .
C
'*
'
`,
SCHEDULE VI--RESERVES FOR DEPRECIATE
OE PROPERTY, PLANT,
* * T ,l 'll t'Vl '
THF.GTTDDEN COMPANY AND C
TOTAL PROPE!
Note - Additions to property, plant, and equipment during:the^year amounted to $7,607,001, and or sales amounted to;$8l8,907.. I'The information required - by Columns. Bj C^ D,; and E is therefore omi because"neither^: the 'addiiions nor :the deductions, amduoted to more .than 10^- of the closinq" balahce.
CHNUT a'tRMrf |
SCHEDULE VI--RESERVES FOR DEPRECI ATION, DEPLETION, AND AM /OF PROPERTY. PLANT, AND EQUIPMENT /f*.
THE^LIDDEN COMPANY AND CANADIAN SUBSIDIARY;
Year ended August 31, 1959
COL. A
COL. B
COL. C
ADDITIONS
DE
DESCRIPTION
TReserves 'for properties -utiliz ed.
in Glidden opera/tions:
I- .
Ore lands and leases 1
'
' Land improvements "
.; Railroad sidings ' . . : '
, Buildings
Machinery and equipment,
Furniture and fixtures ."
Balance at Beginning of Period
(1) Charged to Profit and
Loss or Income
<3) ,-dv;*
Charged to Other : Accounts--Describe
!/ Reti i Rene : RepI
$ 177,329 391,596 53,288 . 6,793,451 11,371,115 1,531,895
$ -0-
62,325' 8,753
958,860
3,107,421 307,202
1 -0-
r-
-0-019,888
4,757
$ -.
. .15,
I 5, 1127, 401,
Automotive equipment Allowance-, xo - reduce: Abandoned V
148,742
) '^ 34,696.
7,808
, 71,
*
-0- . *
21,
*l - \ \
-, St."Helena plant to estimated
realizable value ,
686.769
-0- * _o_.
Reserves for properties leased tol Central Soya Co.:-
$21,154,185
$4,479,257
$ 32,453 ** t
$ 642,
Land improvements Railroad sidings " r-A' Buildings Machinery and equipment' - " Furniture and fixtures ' . Automotive equipment
` rn
; .. . TOTALS
. $ ' 86,918 76,686
3,'272,895 - 5,130,586
' 240,296 9.672
'$ 8.817-.053 $29,971,238
$ 19^379* ,
27,251 1,105,673- - `
909,475 ' . 35,104 3.174
$2.100.056 '
$6,579,313
, 1 -o~ -0-
.&
7,368
1,072
' 48,
-0- .
. 1,
-o- i .* -1 14''
$ 8.440 i 40,893
$ *5Q, "$ 693,
. v^ The amount's; shown in'-Columns .C(2) and D( ?:):. represent, miscellaneous ,adjustments and
.f'i'C.
C-- -
.
* * " ' I,
*
' "v -
`*V- /
'
` $22,504.-942 , -'y
. -/
TOTAL PROPERTY, PLANT, AND EQUiPWiENt;"/: l96.799;892l^::?v'.
id equipment during the year;amounted to $7',;607.,001and.retirements''-'V ...i-
tion required: by Columns B, Cj D,'and E is therefore omitted,
'.
liOns.emqunted to mere than 1C$ of the closing'balance.
Vi:1
//4;. Ir; /T'd///
rI--RESERVES FOR DEPRECIATION, DEPLETION, AND AMORTIZATION . /OR PROPERTY. PLANT, AND EQUIPMENT
; TH8%LIDDEN COMPANY AND CANADIAN SUBSIDIARY
. ;'
Year. ended August 31, 1959
OL. B
at Beginning Period .
COL. C
ADDITIONS
(1)
Charged to Profit and Log* or Income
Charged to Other ..Accounts--Describe
COL. D
DEDUCTIONS FROM RESERVES
, a) /,
: Retirements,: Renewals, and Replacements
. Other-- ' Describe ...
7,329 >1,596' .'3,288 0,451 '1,115 31,895
18,742
; -062,325' 8,753
958,860 3,107,421
307,202
)H 34 ,'696 .
_o_
r" -o-
o--.. 19,888 4,757 . 7,808
-o-
, -o-
15,623 5,528
127,215 401,706
< 71,073 21,842
-o-
-o--
-o-
1774,323
-0-o--
COL, E
Balance at Close of Period
f--: bi ,^
* 177,329 438,298 56,513
7,624,919 14,092,395
1,780,589 161,596
36.769 34,185
-0 $4,479,257
t -0-'' "
$ 32,453
.
-o- $ 642,987
-0, $ 4,500
686.769 t25,018,408 '
36,918 . $ ' 19,^79*
/6,6s6.
27,251
.<
/2,895
' 1,105,673'
30,586
909,475 *
4.0,296...-
35,104
9,.672
3.174
17,053
$2,100,056
/l,238
$6,579,313
. $ '-o"0~
7,368 1,072
-0-
--o$ 8.440
.1 40,893
;
$ , -o-- -0"
939 ' 48,178
1,408 -o-
$ 50.525 $ 693,512
*
.
21:^represent.miscellaneous-adjustments and reclassifications.:
-0' 0-- ; --o-- '
257 -o -o-'
257'
4,757
$ 106',-297- 1*1188
103,937
4,384,^97 5,992*698
jjjjj
273,992 siisjji 12,846 igtjgg
10.874.767'*
$35,893,175
wr
ll-'
7T*~r--------- ------- ------------ -------- ------- ---------
T. '
\n
; ' SCHEDULE XII--RESERVES'.'.-
THE.G1IDDEN COMPANY AND.CANADIAN SUBSIDIARY
,fv Year ended August 31 1959- (
COL. B
Balance .at Beginning
> ol Period
COL. C
ADDITIONS ,
d)
Charged to Profit and Loos or Tacome
(2)
Charged to Other Accounts--Describe
COL. D
Deductions from . Reserves--Describe
$ 425,042
f 216,836
. f> "0"
( 225,064A
COL. E
-'-..Balance at Close ;l Period,
m. l4-6.8l4-!a
E-7
A. ! XVI--SUPPLEMENTARY PROFIT AND LOSS INFORMATION : JHE GLIDDEN COMPANY AND; CANADIAN SUBSIDIARY 1 \
Year ended August 31, 1959
COL. B
CHARGED DIRECTLY TO PROFIT AND LOSS
0)
To Co*t of
Goods Sold or Operating Expenses
(2> . Other
.
$2,849,913
... 4,146,731
l I'l 380*362
801.858' .,182,220
f . 235,677. 2,432,582
I 351,700 223.727
;> 575,427
-0-. '
200,619 " 140,485,
--o-
1,'100,278 j
-o-
; 4, ; COL; C
4444,1
CHARGED TO OTHER ACCOUNTS
*
(1) Account
<2) Amount
COL.D ,
, 'Total \ ,
$3,085,590 *ri ` ' --o-- 6,579,313.
-o-
$ 732,062.
-0- _____liQ25ii>8.S -0- $1,757,647
-0-
-o-
14 J