Document M54jV35Gg2z5aorwv2z9z6M

Ptiroacct to Section 13 or 15 (d) of the Securities Exchange Act of 193k* /* For. the Fisteal Tear Ended October 3i, 1952. ,, . ! THE OUDDEH COMPACT 1396 Onion Coamerce- Building, Cleveland, Ohio 4. mi cf ,v. mamIMm' Comm Stock, uitkont poreiloa t,m,m Itea 2. I Parnate end s^etdtarlea of lai stLlJUJBU. MI State of MMgS^ . fk (Hidden Cen^ceqr, United (l)... *. 0Hedc? (3.S.4., Ine. <l).. Barkae &ms fooda, Zee. (?)..*. jEla^rUIflr (3) Growth Pradaeis Qef@$mr i3 ). .*.. Ontario florid TtHraat* Florida Kltsiuippi Stock 0m . All All All m -m (1) Active stbeldiUrtfi* included in ccnaolldated financial Btaisasair, (2) UaBstiTB subsidiary. (3) Active cubddiari** which have not been inolodad in ary groqp dr consolidated statenests waA ter Which separate atetenests arc Dot filed. ^ The aggregatcacaota cf all ansecoaltrifited ssfegldlarloa for which etatesaactsw.-. arc not filed de act Md 15# of tb# total aaaota of tha registrant asd v its cc3S^Udaitd ecfeeWlajrino to shown bp the regletrait'a consolidated bul- " aisco ehact filed with thin. report. She aggregate gretaronane of all'Bsess- - \sol^4ed ^jn&iddla^^ not exceed.15# of the aggregate pees revma'ot./- th" registrant'abdlLi*' eJ8lidifccd euheidierlea aa ehoairkjr the registrant's . 'eiwlfidated .profit cod1' lass. etateacat filed with this report. Iton 3*'. . Changes la the BcslBoca . _ Thar* were so ratarlaliy important dunagee within tha.flocal.pear ended October 31* 1P2>2, In the business of the registrant and lie subsidiaries. iftttife ; y '- 'Share wane 'no' katertaUy lB^ertant, doveledacuta during the fiscaL-ye&r ended October 31 1952, in any notarial 'ponding legal proceedings of a character required to ho described in an application on Pora 10 or in a /report on; ra:'8-. ; , mm of director - or offleer Adrian-B -Joyce Caplate mujl < eg/T - `^ ^ _______ .....jwmim--^ ,,, - ^ 1'* , i , 'V^W -^*s .. 135 Union Csaserce Building Director end'Cbarah' of to" ' Clcvclsnd, Ohio Board of Directors Osflght P. Joyce. Clifton W.. Kolb . - e. Villiaa J. CBrlon 1396 Union Ceaworoo Building Cloveliad, Ohio 11315 Lake Avenue Cleveland, Ohio 1396 Union Commerce Boilding Cleveland, Ohio 'and?Chief Executive Officer. Director; Preeldest and Cteaeral Manager, *d ' "* ": if: -JEsoestlw - Cowiittae-^-;# Director *1 "1 Director and fice .President Xi' "f Paul E. Sprague 1396 Union Cesserc Boilding .Director, Vice President and . Cleveland, Ohio , nsenber of Exsssflv* Css&itiea John A. Peters 1396 Union Coesaeroe Building Cleveland, Ohio Director, Tice President and Treasurer, and number of Executive Coagalttec .. John P. Hath 13S>6 Union CoraKcrcc Building Director, Vice President and Cleveland, Ohio neither of Executive Canalttoe Ralph 0. Golsetfa 19?5 S. Laranie Avenue Chicago, Illinois Director and Vico President __ Alexander D. Duncan. 110Q1 Madison Avenue Cleveland* Ohio Director and Vice President Beauford JSaxey. **' v *_ , " ``J. * '. ** John H.` weeks ,v 13?6 Union Commerce Boilding Cleveland, Ohio . 1396 Union Cooaisroe Building Cleveland, Ohio .Robert D. Berner .: ' .*> v. 1396 Union Cossaorce Building Cleveland, Ohio . Director and Controller Director and Director of. Personnel Relations Secretary ' Kevell Beatty 2900 fifth Street Berkeley, California Vice President Lovell T. Pulliaa Ford' K. Ferguson 1303 5. Shelby Street Louisville, Kentucky 1825 k. taraade Avenue Chicago, Illinois Vice President < Vice President 1 Item of director or offloop 0 V. 0. Phillip ft.'St Warner R. E. Dorfiaeyer Complete nailing addnese* - ' J v Positions cad "T offices h"*ld ;:1100r: IMieca Avenue Cleveland, Ohic #crir**ni Tr*-?*- -nan. Nadirsn Arprve ^ ClarrelsBd,%Ohio Asristert GcxA ' T.r . 139^ Union Corsserae Pitildiug Cleveland, Ohio ^AvsM)s' -tis' -(t?a! nt WS-JeV'*c. rsUry Item 6. Business Ettortoncw of Executive Officers: , ....... ,, ,, ' ,, All executive officers of the registrant have been previously reported as such an officer. x$**7SRfr "Item 7. Indemnifiestion of Directors and Officers '/ Bo arrangeaants except those reported in Annual Report on Fern 10-E for the fiscal year ended October 31* 19h9 Item 8. Remuneration Of Directors and Offloera of Individual and Capaaity in which Remuneration wee Reoeived or Identity of Group Fees and Salaries Bonuses Paid or Set Aside Amount of Company** Contribution Under Retire ment Plan Adrian D. Joyce Chairman of the Board and Chief Executive ` Officer and Director ,'>V' Dwight P; Joyce & .--. president and General Vv-; Manager`and Director $100,550.00 125,500.00 Bone Bone Bone - P 7,327.00 Paul'S. Sprague 1 Tice President and Director li0,500.00(b) $12,000.00 11,013.00 John A. Peters Tice. President-Treasurer and Director . John P-. Ruth' Tice President and . Director 38,100.00" Rone' r.-C l5,55o.00(c) 12,000.00 ,12 152.00 9,Ui5.o o Alexander D. Duncan . Tice-President a^d, Director 1(>0,5SP. 00(d) 12,000.00 7,012.00 Annual Benefits Estimated to be Payable in the* Event of Retirement(e) /. ' .Bone I 10,950.00 0,980.00 J.0,980.00 10,980.00 - 10,980.00. jd C^aoity in whieh towiMMtlon'ms * - ^ . Received or Identity liof>Qrow> f t 1^ ,, U t ______ .. ftialjpkiQA*.ZQAetlm t*f+l!x..... .* Vice President end Director ---------i f Salarisf ' vV k t ' ___`....1 ' .r $ i,3c.00(c) $12,000.00 $ i*,l*li2.00 '$ io;?e . , Beauford W. Maxwy " " controller and Director 214,600.00(f) I*,000.00 2,362.00 5,380.0)1^^3$!? ' v All directors and officers as a group (including those nomas ** above) 637,850.00(g) 73,000.00- 86,960.00 117,1*53.52 (a) The information given in this column as to officers participating in the Retirement Plan is based on the assumption that such officers will continue to receive the present rate of compensation until retirement st age 65, that they do not at any time prior to retirement date die or withdraw from aotive service with the Company, and that the Company continues its contributions to the Retirement Flan on the present basis. (b) The aggregate remuneration shown for Mr. Paul E. Sprague exceeds/the . . corresponding amount for the year 1951 by $11,950.00. (0) The aggregate remuneration shown for Mr. John P. Ruth exceeds the corresponding amount for the year 1951 by $17,050.00. * (d) The aggregate remuneration shown for Mr. Alexander D. Duncan exceeds the corresponding amount for the year 1951 by $17,100.00. ^ " (e) The aggregate remuneration shown for Mr. Ralph 0. Qolseth exceeds the corresponding amount for the year 1951 by $16,850.00. '. ^ '>y ' (): The.aggregate remuneration shown for Mr. Beauford'hi. Maxey exceeds the 1 \ corresponding amount for.the year 1951 hf $10,100.00* .. (g) .The aggregate remuneration shown for all directors and officers exceeds the corresponding amount for the year 1951 by $73,716.68.. '' ` * * C The Company's contribution under its employees* Croup Life Insurance Plan on behalf of all officers and directors aggregated $1,1*95.90 during the fiscal year ended October 31, 1952. The maximum cost to the Company of insurance for any. , * director was $89.16 for this period; - V ~ . . r~" In 19U7 the Company granted 55 officers and key employees options' to purchase' ' at any time prior to November 1, 1952, 13200 shards of Common Stock of thtf Company at.a price.cf $1*2.00' per share. After the split-up of the Common Stock in-191*7 and the 2% stock dividend distributed on the Common Stock in 19l*9, the option price . was $20.59 per share. On February 25, 1952, Mr. Dwight P. Joyce exercised his option for 612 share* of Common Stock at a price of b2-^6oi.06. Tha approximate______ > market value of shares purchased, based on closing quotation on the New York Stock Exchange'on the date^of exercisethe option, was $22,950.00. _ .% Pursuant to the Stock Option Incentive Plan of the Company, Which was adopted by the.Board of Directors on December 21, 1951 and approved by stockholders of the wsmssm m < 4$.. " Company at a regular aaeting of the shareholders hsldes February lb, 1952* ilia Coapanyy so an incentive and to- encourgeA"stoek"e*i!wMs^^ ty Section 1301k of the Internal'Itororai GodV officer, directors and key e^logrm of, the 6oqpugCtd its subsidiaries options ;!eovrlng=`-3^!^autberiwd!sndiunlW a price of 135.00 par share. On the daWeptienewere fi; theetcokef CoBspany sold on. the Kew'Ycrk.StocksEMhanger-at,-pricea%@Bgii^''-^pm"f3&"|/B?;fco $36 $/Q per share. The officers sad directors of the' Company the received shy ''`of'the options end the respective number of shares called for byth options granted to officers and directors were as follows! DtrightP. Joyce,.President, '.and General K&nager,~and Director, 2000 riaares} Paul E. Sprague, Vico.President." and Director, 2000 shares} John A. Peters, Vice President and' Treesorer end Director, 2000 shares} Alexander D. Duncan, Tice President and Director, 2000 sh*jr| Jolm P. Euth, Tice' .President and Director, : 2000 ehare8} Ralph. GXtfe, Vice President and Director, 2090 shores} Beauford W. Kaxay, Controller and Director, 2000 shares} John H. Weeks, Director of Personnel Eolations and Director, 2000 shares} Robert D. Horner, Secretary, 700 .shares} Ford K. Ferguson, -Tice President, 1000 shares} Lovell Y. Pulliam, Vice President, 300 shares} Oeorge S. Warner, Assistant Controller, 500 shares} Robert K. Dorfmeyer, Assistant Secretary, 500 shares} adlliasi 0. Phillips, Assistant treasurer, 509 shares. The duration of such options is ten years from the date of granting. Certain notarial provisions of thee* options are as follower (1) the right to exorcise such options terminates immediately. if the employee ceases to be ah employee for any cause other-than death or retirement} (2) the options are not - transferable other than by will or by lavs of descent and distribution, and during a participant* lifetime are exercisable only by him} and (3) no shares shall be iosued pursuant.to an option until full payment therefor has been made and a participant shall have none of the rights of a stockholder until shares are' to him. Item 9. . Remuneration of Certain other Persons Rot applicable. /. Item 10. ' Interest of Management and Others in Certain Transactions. s'.'/' On'- December 15, 195 the Board of Directors approved a&.-agreament entered into as of Movember 1, 1950 between tho^Coapany and Hr. Dwight F. Joyce whereby Hr. Joyce' is to be employed as Qeneral Manager of the Company for a period of five years from November 1, 1950, at his present salary of $75,000 per year, plus U`of'the Cosspany'a net profits after taxes and all charges, and after the. deduction of the regular dividends on the Company** Convertible Preferred Stock, and an allowance of $1.00 per share on the Company's Common Stock out standing, subject to the limitation teat his additional compensation,' so com puted, shall in nocase exceed $50,000. The full text of the above described agreement is set forth as Exhibit "A" attached hereto and made a pert hereof. ... . Item 11. Principal Holders of Equity Securitise Mo person is known by the registrant to own beneficially, more than.10JS of any cites of equity.securities of the regietrent. ' -- t ^b* ii Vn * *- i^iJ~ ** t ' *Xi M V y. k "a 10. Itfs. ell directorr*W:cXa;Td^-fn^;'T4^ ..... Ufa ^awiy:,, r: ^Mm^t^fmsdm^. -' - i^nv'vv Adrian iC Jbgreav - ^ r* * C ,, > J,+ ! T'~Sr` |W 1396 Union Cewerct Building ^Bocnrd'ad-^ - ~* - c h w 1k I, Old1 ' ' ^ >^vjvi&jQg.' , B*ali*lljr Bwifht P. dbyee 1396 0%ien Goatnt Building! Cleveland, Ohio - Record and . ienefiaielly ^cites Clifton K. Kolb 11315 lake Avenue 4 . Cleveland,1 Okie Record M 1,000 ' Willis* jl'O'Brien ," < 1396 Onion CEerce Bsildlng Cleveland, Ohio " Record " " b,896 Patti E. Spraeoe 1396 Onion ~ $0^-^-C*-le' 'v"Te^-l;a-,;n^d;v,; -: ;,^Ohio vV r 1 John A. Petere ,1396 Onion Cleveland,. Ohio Building ' Building Record and -Bewfidlally iff1U ' 1 U,Mi7 Record 1,870 Johnvl AS!* P. Ruth. 1396 Onion Cleveland, Ohio Building Record l,*IA Ralph 0. Oolaeth . 1625 0.' Laramie Avenue - Chicago, Illinois ' t ' , * '>V' Alexander DV Danecn ;, 1 -&., 11001 Hadi*on Avenue Cleveland, Ohio & Record Record 160 820" : pl; Beaiiford TVTf../'Klteeaaasy - 1396 Oniomn Cocnnnacorco. Building Cleveland, Ohio Record m , John H. Weeks > 1396 Onion Conferee Building Cleveland, Ohio ;'VFJ5 Robert D. Homer 1396 Obion Come,roe Building . - Cleveland,.Ohio . Record Record 20k (. -1S0 < Rowell Beatty 2900 Fifth Street * .. Berkeley,' California - #. --v. Record' 5i6 ti s is  Ban# cad Address * 'Imll X.' MUtn ' _t * 1303' S. Shelby Street LoelaTlll,, Eentaefegr-* ?W'' V. fl. Phillip# 11001 Hsdlsoft Avehu# Cleveland, (Mo , 1 1 0, S. Wanir 11001 Kodlcsn Arena# Cleveland, Ohio ' c r - Item 12. Koaber of Haider# of Boulter Securities. \ 1 . f ' On January Hi, 1?>'3 there were the following number of holders of record of each class of equity securities of the registrant) ' Title of Claes ,;;V ; .' ! ; ' '.'iV.'' - iT'^" V'^% 7\\. VivV] ' "> >.- OoBBn Stoek, withQttt par valu ,. Humber of Holders '" ' ; v"V'. . vjVr:- 18,3)j 3 '. '''' . ,V/7r/7v';-ry'. Item 13. Options, Warrants and Righto Pursuant to the Stock Option Incentive Plan of the Company, which was adopted by the Board of Directors on Deoeniber 21, l?Sl end approved by stockholders of the Company at a regular meeting of the shareholder# held on February lb, 1952, - the Conpsny, as an incentive and to encourage stock ownership in e Banner non- teaplcted by Section 13Q1 of the Internal Revenue Coda, granted on Juno 2fc, 1952, to 83 officers, director* and key enqplcyee# of the Con^eny and its subsidiaries options covering 36,650 authorised and unissued shores of Cannon Stock of the Company et e price of 635*00 per share. On the date options were granted, the stock of the Company sold on the Kew.Xork Stock Exchange at prices ranging fres 636 5/8 to 636 7/8.per (hare. - The duration of ' sack; options is ten years fron the date of granting. Certain ^jnaterlal provisions of these options ore as follows) (1) the right to exercise such options terminates Immediately if the employee cesses to be an employee for' any cause other than death or retlreaentj (2) the options ore not transferable other than by-will or by laws, of descent and .distribution, and during a partici pant*s lifetime are exorcls&ble only by hlaj and (3) no shares shall- be issued pursuant to an optlon nntil full psynsnt therefor has been Bade and s pcrticipen shall have none of the rl^its of & stockholder until Shares are issued to hln. As of Ootober 31, 1952, the following persons naned in answer to Items 5. and ll. held an option as described above* - t Dwight P. Joyce Paul S. 'Sprague John A. Peters Alexander D. Duncan .. John F. Bath Ralph 0. Oqlseth Beauford W. Kaxey Jbhn H. Weeks Robert D. Horner . Basher of Shares '* -------: ...... 2000 7 2000 2000 2000 ' 2000 '' 2000 2000 2000;-v: y7yV- ^77747; 4 700 4 .*'s (r,; 't -c x Ford K. Ferguson Lcnrell X. Pulllaa tteorge.S. Varner _ f Robert S. Dorflseyer - vmiw 0. Phillips *' s , 'AV 'i&fc *vL J1 \ vi*x * >^ +,*6*)0*^ ii# Vvfrn v" * A *****- w l -` - ,500;";^ ^ / - -5 *' ' $00 *- ^ >-4V ^ " *. h '"tN1 *- ^ As of October 31, 1?>2, the following named personalia answer to Items 5. and 11. hold an option calling for 5? or nore of the total eneunt subject to ' optlonct Kane limber of Shares Dwight P. Joyce Paul E. Sprague John A. Patera Alexander B. Duncan John P. Ruth Ralph 8. Qolseth Beauford . Massey John H. Weeks 2000 2000 2000 2000 2000 2000 2000 2000 Item lb. . Financial Statements and Exhibits. (a) - Financial statements, separately*bound, accompany this report. (b) Exhibits - Exhibit nA" attached hereto. sxmvm /. Pursuant to the requirements of the Securities Exchange Act of l$3b, the.; registrant has duly caused this annual report to be sljghed on its behalf by the undersigned thereunto duly authorised. - .W * - & THE QXJDQM CCMPAMI Date February 17, 1?1?3-  , ', r ; ,,.. t h e mmMomPkw --1 . - 1396 Unicn Cemmrtm Buildings I;-,;(% * % A i%'-ww ^rjkm.f\d rv;' ^ /, v Adrian D. Joyce Chairmn' of the' Board Cleveland litf * .......... -' ....................... .................. ,lovwiieraX,,1550.iSSif;M . *V rf < ' ^ 4 isiiis Hr. Dwight P. Joyce President, The Olidden Company 1396 Dnion Commerce Building Cleveland 11;, Ohio This la to certify that as agraeoent has been reached between you and THE OLIDDEE COHPAHX tinder the terms of which you are to be esployed as Qsseral Manager of the Compaq? for a period of five (5) years from Kovesfeer 1, 1950, at your present salary of Seventy-five Thousand Dollars ($75,000.00) per onnos, pins One Percent (1JC) of the net profits after taxes and all charges,and after the deduction of the regular dividends on the Preferred Stock, and an allowance of One Dollar ($1*00) per eesaon share on the Common Stock oatstanding. This agreement is with the understanding that the additional compensation ever and above your present salary will in no case exceed fifty Thousand Dollars ($50,000.00) -per annua. . /TqjfcrAcceptance`to^ Agreement will be evidenced by your signature, -to two. identical copies of this aeaorandua. THE QLIDDiSS COHPAHT ACCEPTED] /s/ Dwight P. Joyce /a/ Adrian P. Jo t c o ' Chairman of ihe Board anJ Chief Executive Officer December 15, 1950. This is to certify ..that the above Agreement haa been approved at th..e....D....i.r.e...c..t.otr*#''V' Meeting held, this day. / / Clifton H. Eolb Secretary V ' V.` 18 , C' i. t ^ s* * 4 Ju\ K\ w .- i ^^ -FINANCIAL STATEMENTS AND SCHEDULES SECURITIES AND EXCHANGE COMMISSION FORM 10-K FOR CORPORATIONS NAcH^VAoRdrBU;ANI.V f bak er l Jbr ar y c o r po r at io n r ecor ds ' d iv is io n - ANNUAL REPORT FOR YEAR ENDED-OCTOBER 31, 1952 ` THE GLTDDEN COMPANY * , Cleveland, Ohio FIRAHCIAL STATEMEHTS AWD SCHEDULES- ', v- The following financial statements and schedules are included: Consolidated balance sheet `, Statement of consolidated Income ', Statement of- consolidated surplus ^ , Schedule 'V -Property, plant, and equipment' Schediile V- - Reserves for revaluation of property, ,, plant, and equipment' ' ^ ;v Schedule . VI <= Reserves for.-depreciation, depletion, jvfv and amortization of property,- plant, , and equipment.. Schedule XII -.Reserves . . Schedule XIII - Capital shares * - Schedule XVI - Supplementary profit and loss information r : ^he following financial statements and schedules have, been omitted, for the reasons given: Schedule!; 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 l.(e) of instructions as to financial statements for Form 10-K annual report are met in this instanofe .. and the financial statements and schedules of the parent Company have been omitted. __ 4 : P-3. ERNST St ERNST ' CONSOLIDATED BALANCE SHEET THE GLIDDEN COMPANY AND SUBSIDIARIES- October 31, 1952 V!: '. ;t - * -**.* " <,*. " 11 S , ^, j. ' `a ASSETS ^ > 'i ^CURRENT'-ASSETS ' - - Cash. - 5j 667,244.95 Trade accounts receivable Less allowances-Schedule XII $17,775,507.19 - 514.730.. 82: 17,260,776.37 .Inventories: Raw materials $24,609,058.00 In-process and finished goods Supplies 17,568,696.00 ' 1,279,400^00 43,457,154.00 *. . i .Principal raw materials are ' ' -'stated at cost (last-in, first-out method) which did not- exceed replacement market;; other items are stated'at the lower of cost - (accumulated average) or replacement market ' Other current/notes and accounts receivable, advances and investments TOTAL CURRENT'ASSETS , , . ^ 1,903.,3^.6,^ 68 288 532 2 OTHER ASSETS Prepaid insurance and expenses Cash surrender value of life $ 896,514.02 f. insurance 816,193.50 Miscellaneous notes and accounts receivable, advances and investments 562.826.88 . 2,275,53 , ?CURRI ""1161 Ac( t \ Ac< Fe LONG . Se CAPI Ca PROPERTY.,; PLANT. AND EQUIPMENT Land,* .'.'at c.bst-Schedule V ' . Buildings .(-$16^8_6o,434.00),' v-.' 'machinery, and equipment, 'at . ! cost-Sched\ile V Less accumulated depreciation,.' depletion-,-- and amortizationschedule ` VI $ 2,896,180.00 50.027 ."504.00 452,923,684.00 21.529.830.00 31', 3 93,854.00/ Cs Ec Le _3 . _____ .$101,957,920466; See vug- HasanIBK LIABILITIES. CAPITAL STOCK. ANB SURPLUS CURRENT* LIABILITIES _ *- ,Notes'payable to banks: Short-term loans - 4,000,000.00 i Serial notes maturing July 1, 1953 1.-500.000.00 5,500,000.00 -;1:'Accounts payable: Trade accounts 5,379,459.8? Wages and commissions 1,647,096.64 Pay roll and withholding taxes Accrued liabilities: --39Z*i23*ia 7,423,685.72 insurance, royalties, and miscellaneous ' other',!terns 855,491.95 . Taxes, other than taxes on income 430,414-. 31 Interest 25.000.00 ' 1,310,906.26 "Federal, state, and dominion taxes oh .'income-estimated .7-4Z?-,jj3146 TOTAL CURRENT LIABILITIES $21,8i.4f027.54 LONG-TERM DEBT '. . Serial notes payable, maturing $1,500,000.00 annually .1954 to .* 1956, inclusive, and $4,000,000.00 in 1957, interest .8,500,000.00 CAPITAL STOCK AND SURPLUS Capital stock-Schedule XIII: Common without par value: Authorized 3,000,000 shares .. (100,000 shares reserved for sale to key employees) "V Outstanding including treasury : / .sharpy- 2.291,.33Q shares Stated-capital - " ' -^.Capital .surplus-s`ee 'statement ' Earned surplus .(includes $3,556,36G-.57 of surplus of .Canadian subsidiary)-see - statement .Less 6,5,91 treasury shares, at cost ,, . ". S. $ 5,728,325.00 26.875.642.41 - $32,6031967. $39,202,349'.l5 ' , 162.423.44 39,039.925.71 ^ -71,643,8g342$!0i;957,920^66 See principles of 'consolidation and notes to financial statements-, . - ERNST St ERNST STATEMENT OF CONSOLIDATED INCOME THE GLIDDEN COMPANY AND SUBSIDIARIES Year ended October '31, 1952 Net ' sales Cost of goods sold, selling, . administrative and general expenses-Notes A, B, and C: Cost of goods sold' . -Selling ^.administrative and general expenses Provision for doubtful accounts $205,1131303 .-86; $164,889* 799-26' 25,986,575.59- ($409,776.95) less recoveries ($l58045."99)'--'on'..:'accounts charged off in prior years- ; Schedule XII 251,730_._96 1^128^10523x , $13,9lTl98^05' ' Other, income ` 556.696.99 ... f 14,541,695*0^ : .Interest expense ( Taxes on income-estimated: Federal normal tax and surtax Dominion' and state taxes - 338;090.26 ' INCOME BEFORE ' . .. TAXES ON 'INC OME $ l4,203,8o4.78 , ,6 800 000.00 455,000.00 7,255,000.00' CONSOLIDATED NET INCOME $' 6,948,804.78 See principles of consolidation and notes to financial statements. /. i ~ vr "i* ^ // - r*,Tyf ` 4 i; ERNST & ERNST: '"& ^ -/ V ^ 1^ ,,,, .STATEMENT OF CONSOLIDATED SURPLUS... 'T7" ' ' > ............... -** ...... * r -; ...... <?* *' " j'"i " i THE GLIDDEN COMPANY AND'SUBSIDIARIES ' ' " ' ...... ^ *'J Year ended October'31, 1952 CAPITAL SURPLUS ^ I'BalanceratjvNbyember,'-:!^ 19515 and October 31, 1952 EARNED SURPLUS .Balance.at "November 1, 1951 ' " ' Add hetliincomeifor: the year . - Deduct dividends, paid on common- stock-$2.25 per share h\n,4 Balance at October 31* 1952 p?c, P7< a l p hi o V/ s*# 1 -- * -- ~r= 78< 6,9'+3 , u-j". 1 o eLls336,59^65' 5,"134.245; 50 $39,202,349; 1 r'. See:"!nctes to financial statements. ERNST & ERNST -* TBINC v NOTES THE GLIDDEN-COMPANY Principles' of (1) Inventories include small amounts of-inter-company profr^^l^^ ...-which/ are not- 'significant1 andT^have rrotybeens eliminatex because it ib not considered practicable to do so. mgmmi *^ ,, , * < ^ "4 (2) The companies included in the consolidated'financial staLs-. ments at October 31 > 1952, and for the year then ende*` are the same companies included in the financial state-, ments 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.dn 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 * 1952, exceeds the. parent Companyis investment by the amount of $3*556,360*57* This excess represents the -undistributed earnings of the subsidiary since date of acquisition, and is included : in earned: surplus: i-n 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? 1952, exceeds the parent' Company ' s in- . : vestment by the amount of $52,222.28. This excess represents the undistributed earnings of the subsidiary ;- ` since date of acquisition, "and is included in earned ' -.surp 1us in the: consolidated statements. - * - ' 'v ' Notes': " . . - Note A - Inventories at the beginning and end of the year, in the respective amounts of -$31,110,474.20 and $43,457,154^00.' usecM_n the` computation of cost of goods sold have beeir-fJric^d _ as described under'the. inventory caption of the consolidated- ^ balance sheet. '1 Note B. - Depreciation, depletion, obsolescence, and 'amorti- sation:.. ..... ...... , ._ ...... .............. ............ * ,.. . . The .policy of the companies with respect, to depreci-- 7 ation ls-.to provide amounts'considered-by the management as fair . and reasonable to cover wear, 'tear,' obsolescence,- and deterioration of'the property by application of specific rates on the straight- line method.' The companies'do not believe it practicable to. set' . forth .the rates in use as such rates'-hkve been determined- generally . as*appliable to specific assets or-group of assets in various :.-.geographical, locations ' `' .s ' Notes-continued: S|t >V'" Ill r. ^5r?a* c?rfJ*&r Note B - Continued:; mr' ! X- i>5 m Pr-ovision for depletion is competed for each unit of production, based upon estimated recoverable-or.e. r- Expenditures for maintenance and repairs are ' charged to operating expenses, and expenditures for betterments . and renewals are added to the property accounts. The costs of properties retired or sold (less pro.'\ceeds) are charged against amounts accumulated for depreciation ' if such retirements or disposals were contemplated in the de termination of depreciation rates. If such retiremerits dr dis posals 'were not contemplated, the asset accounts and related ac cumulations 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, deple tion and amortization, taxes (other than taxes on income), '* ^management and service contract fees, rents and royalties. ' Note D - The companies have in effect noncontribut^ry. retirement plans for employees. Eligibility provisions o`f- such plans specify minimum ages and periods of service. Benefits are m 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 on a ten-year ' * period. -On' this 'basis of funding, the peribd of which may be ' increased. ;at .the. option of the companies, the total annual cbzt: ' is1 estimated"'to b&f-approximately '$856,000.00, comprising 'Sf39.3;K0p0:00~"'for "past service, and $U63,000.00 for current service' costs'. At October 31? 1952, the unfunded portion of past service costs'is estimated to be approximately $2,7^-6,000.00. ' .I ) . ' , % `t 3 KRNET & ERNST SCHEDULE'- V---PROPERTY,' PLANT, AND EQUIPMENT THE 'GLtDDEN COMPANY AND SUBSIDIARIES ; ./ -Yfear' ended October : 31, 1952 ! ' jm V COL. A ' CLASSIFICATION^ Ore lands and leases :-* Land .r Land improvements Railroad' sidings Buildings ` A Machinery and equipment Furniture and fixtures . Automo ,ive equipment Construction in progress ' . -- ; COL. B -. Balance at Beginning of Period : COL. C | CO Additions at Coat j- Retii or TOTAL ; 452.28 2,632, 913.52 ^91, 300:50 , 19J' 500.80 16,715, 042.70 29*24-3, 632.61 1,^3, 725.36 334, 116.67 1*8ZZ 615.41 $53,207,299.85 { 4,583.32 $ ' 4 37,132.06 146 55,346.63 ' 3 .2,335.26 5 979,899.15 184 2,916,076.40 1,429 266 0*4.66 24 14,206.23 59 1.232.679.41*-^____ $3,042,934.30 $1,85$ Note A - Elimination of appreciation included In tjhesl* accounts. * Indicates red figures. j . I'C-lv - . . .v-./. ;; IDU^Ec V--PROPERTY, PLANT, AND EQUIPMENT iE &DIDDEN COMPANY ' AND i SUBSIDIARIES :: V. j r Year, ended: October 31, 1952 COL. B COL. C | COL. D coil. E COL. F J; I Balance at Beginning 1 of Period ' . j Additions at Cost j J. Retirements or Sales Other Changes-- 1 Debit and/or Creditj f Nd^scri^f 1 linr--------------------ITT* Balance at Close , ; of Period 235.635.00 $ 235,^52.28 2,632,913.52 4-91,300.50 ' 193,500.80 16,715,042.70 29 ,'243,632.61 ^,483,725.36 334,116.67 .. 1.877.615.41 ; r: 4,583.32 ; 37,132.06 55,3 *+6.63 .2,335.26 : 979,899.15 . 2,916,076.4o 266 034.66 14,206.23 ;13.,20334222.,.69b73y9y4...H431g0^* 146,795.08 : 405,674^50*142 ,117,576.00 hj 542.969.00 i,' 3,678.13 5;704.69 1184 .446.26 1,429j879.55 241912.17 59,472.90 ;'i:^91313mm 650,061.59* 16 376,151.46* 30 ^29,459.85* 1 ............ -o-... 184 218.00 ; 860,434.0C 1353,678.00 695 388.00 288.850.00 i -v0. $1,859,289.38 , "Si, -0-1 467,260177*$52 .923,684:00 ^35?7,299.85 - included in ^he s e*account s kj -V ' --g II SCHEDULE V-A-RESERVES FOR REVALUATION TEE GLIDDEN COMPANY AND SUBSIDIARIES Year ended October 31, 1952 COL. A CLASSIFICATION Land . . Buildings Machinery and equipment . Furniture and fixtures Railroad sidings TOTAL COL. B_________COL. C ' - COL. D________ COL. E BALANCE AT BALANCE AT- ' BEGINNING . END OF ` OF PERIOD - ADDITIONS DEDUCTIONS PERIOD <4. (NOTE A). $ 432,548.99 $ 1,491,859.75 1,073,406.34 -o- $ ' 432,548.99 Z -o- 1,491,859.75 : -0- 1,073,406.34 ;-0- ' -o- -0- '31,501.57 6,339.77 $3,035,-656.42 $ --O-- ` -0- 31,501.57 6.339.77 -o- $3,03 5,6 56 42 $; -o- - Note A - These reserves were provided by charges to capital surplus (charges transferred to earned surplus in 1946)'and reserves for depreciation, to eliminate appreciation of property, - plant, and equipment, and to reduce recorded .amount to estimated basis of value during 1932 as determined by the Board of. Directors. As of November 1, 1951, the portion included herein-' :to eliminateappreciation ($1,467,260.77) has been applied.directly _ to the related asset accounts (see Schedule V). As the balances ..in these reserves then represented the equivalent of depreciation' .-^accumulated since 1932 on the write-down, such amounts ($1,568,395^65) * . were transferred to accumulated depreciation accounts (see / Schedule VI). ' / . '. I " p' - i ;* ` flSERYES FOR DEPRECIATION, DEPLETION, AND AMORTIZATION T` H. EOP'(^iPLIRDODPEENRvTOYM, PPLAA'NNYT:',':A'.ANNDDE''!QSUUBIPSMIDEIANHTIESt''!':V:,';;r.`r:::;i:":''.'.':-!-',H'r;.;:.'!:': .... : v".... !',.... , . v- [.... ' -.Year ended October 31, 1952 mag .- V " ,V - ' . COL. C . i COL. D - ADDITIONS | mine ' (1) . Charged to Profit and Loss or Income- (2) ` ! Charged to Other 1 Accounts--Describe (NOTE A) 9-36. '3.31 '8.66 12.73 a. 09 >5.7 8 >0.74 )l'.72: 18,191.25 $ ' 08.26 Mo. 91 223,586.79 ,568,459.29 87,984.39 56.968.18 -o- 26,874.49: 426.40 841,798.16 697,254.88 2,o4i,,72 -0" - $ 1,965,339-07 $1,568,395.65 'd e d u c t io n s f r o m r e s e r v e s ' i Cl) Retirements, ^ : Renewala,and Replacements & .61 ? f. 3,`315.06 2,709.97 , ,' 115,998.73 1 088 772.26 19,453.89 5l,31i^g. $1,281,566.44 (2) , Other-- * Describe -o-o-' > -o-o- -O- -o- "O- -o- COL. E ir Balance at Cloas , of Period > a- 255,371.00," 45,256.00:v:v ,138. 209 T 543. 00 $2!, 529^83^.00 )r revaluation. I'fllslf ERNST 6 ERNST * i. SCHEDULE VI--RESERVESFOR DEPRECIATION, DEPLETION; AND AN ^ , ,, ,,,,j., OFLTROPERTY, PLANT, AND EQUIPMENT , i t h e Gl id d e n c o mp a n y a n d s u b s id ia r ie s ... .- -v- - <~y i . '! ' ..Year, ended October '31, 1952 ' COL. A J! -O | DESCRIPTION 1U1 1. 1 , i* V* Vj .LUilU U UJ.iVU Land improvements. ' Railroad sidings t Buildings -| Machine y and! equipment Furniture and! fixtures''""'A Automotive equipment * | j. TOTAL COL. B COL. C <b r j ADDITIONS D1 Balance at Beginning' of Period (1) Charged to Profit and Loss or Income 1 <2> M,, Charged to Other Accounts--Describe (NOTE A) ^ Re . Rei Rei 226,503*31 42 -698.66 JX.tzy # ^,4,0\0.-*8-9-.-12-__-6_- -u26,78\47i24*6/'.1'-.44\.*90s-. ," 4,853!-342.78 223,586.79 84i;798.l6 1 13 013 841.09 W 565.78 1,568 459.29 87*98h -.39 697,254.88, *1,0 2,04i.72,-. 203T890.?4s^x 56.968.18 -o------l _ $19,277,661.72 $ 12965,339.07 $1,568,395.65 *$1,2 Note A - Transferred,.from |re serves for revaluation. K* T ' s 11 mm 1 . ERRNNtjffTl & ERNST 1A ' iiss rtTTsr\ftT 1? YTT-L]' ' lMotej a - xransierrea irom-reserves l'or revaluation. ' ' r: ^ ,, ;A' liggl ERNST a ERNST V COL. JS 1 | ,1 ^' r' ." d e s c r ip t io n 1 / ,! - ------------------- -4--. ---. -1 1 SCHEDULE XII--RESERVES . THE GLIDDEN COMPANY AND SUBSIDIARIES Year ended October 31, 1952 '; .. COL. B Balance at Beginning ,-s. of Period K,, COL. C ADDITIONS (0 Charged to Profit and - . Char Loss or Income Accou ALLOWANCES DEDUCTED FROM ASSETS -For doubtful accounts, discounts, A..-:.a .etc. : ' $ 523,330). 98s $ *<09,776/95 5 t *v | *\ >, l . ^ -s ,, Not; A.- Adjustment, for cinadiaL exchange. at October 31`, 1951. \ ate. i Note B - Discounts allowed In excess of amount provided during the year/sii^i* Note C - Accounts charged off, V. - SCHEDULE XII--RESERVES ' GLIDDEN COMPANY AND SUBSIDIARIES Year ended October 31, 1952 COL. B - COL. c ! COL. D Balance at Beginning' . of Period 't , ADDITIONS - 0) | (2) Deductions from Reserves--Describe : Charged to Profit and . Charged to Other : v ;. Loss or Income : | Account's--Describe ............. . .1 *1 181181111 t-A -b&x COL. E ........... , ---- - ~................ Balance at Close . of Period |P& 523,330,98 N. $ 409,776.95 ge .'at O.ctober 31, 1951. . amount provided during the year. l,004r36A $ 33,712.28B .......... ,.... 385,669,190 $ 51^,730.82 , s ms&Bh ' * IfiftttSiiiSilW lifcliiiii ; .............- '''-'"' i',"*i"~-"i'>tMi"wii*^twiHi".iwiMJitiiiiwiiea(|H*">Wi!ia*i!uiiii s*naf4i!.wmniMH'wc'7 . s&!.,!aL,?'-'&'> r^fte BlilNHNMtf hhhhni "* vRRKtfiT *4*ERv N\S,,T *fr j> ~ s& ., ? r ** j w s. i ^ SCHEDULE XIII--CAPITAL SHAKES THE GLIDDEN COMPANY AND SUBSIDIARIES ^>-1 A ^ ii October 31, 1952 ts .-4 it^ss'fc-j^Sgrs^* COL. A NAME OF ISSUER AND TITLE OF ISSUE , COL.B Number of Shares Authorized by Charter COL. C Nmftber of .r : Shares Issued and Not Retired or Cancelled:. CQL.D - ' _ r-- NUMBER OF SHARES *' INCLUDED IN COL C ' ' WHICH ARE . SHf SHO1 - REL Cl) Held by or . for Account / of Issuer Thereof (2) _ > Not Held by or for Account of -. -Issuer Thereof. (1 Num THE GLIDDEN COMPANY -: Common without par value SUBSIDIARIES CONSOLIDATED The Glidden Company, Ltd.-common, par value $100.00 a share E. W. Colledge, G.S.A., Inc.-common, par value $100.00 a share 3,000,000 2,291,330 *+,200 50 4, 200 50 6,591 2,284,739 None 3- 4,200 47 2,291 'n o No B?*85SS gggg3S|ggJ5g=s! .v, ' r, ' C ^ *, * ' ^ "J. s f> -'*H. *r*-.**. r v m % ,, *, i ,v<v> V -5 **..* ******.* ' *jjt# *dLr'&*f&* .< ^-3 Wl<ftojS*iw>? iisast IBfesfas SUs HI Sttf //>/ - . f~ r~"" H*sits*ifSiS2^^ />.4 ' '' " , ,v-''/V-' ',%/-|fp " HHiHJv H// *N' ^ ' *J * t . 'V1 "t fMMThi + k * *. m- - ,, ^ " 7 ^ i # N ^ ^ "VC'V , COL, D . NUMBER OF SHARES ,' INCLUDED IN COL. C WHICH ARE Cl> ;ld by or Account tIssuer 'hereof ? ; (2) Not Held by or , for Account of Issuer Thereof COL. E SHARES OUTSTANDING AS ' SHOWN ON OR INCLUDED IN RELATED BALANCE SHEET UNDER CAPTION . "CAPITAL SHARES" - . (1> ~ . Number ` (2) Amount at Which Carried COL.F COL. b ` c o j bH: NUMBER OF SHARES HELD BY AFFILIATES FOR WHICH STATEMENTS ARE FILED HEREWITH ..................... ^%T CD (2)' s Persons Included in Consolidated ,_ Statements ;* Others * '? Number of- . Number of Shares - Reserved for : Officers and . Employees ....Shares Reserved for Options. Warrants, Conversions, and Other V RIffhts > .,591 2,284,739 1 2,291,330 . $5,728,325.00 /None None 100,000 None one 4,200' IBBI ilBBli H h-v;: ?'H^. 'jXx'-& None -0- 4,200 None -0- liliillllllSiHl!li| ' *+7 None None " None None . None . ,, 'None . HfsfSISlH/ * . f /<S>' `V ' ^ fc '' * k a ERNST ft ERNST SCHEDULE XVI--SUPPLEMENTARY PROFIT AND LOSS INFO s TIJE fGLIDDEN COMPANY AND SIJBSIDIARII ;Yea:c ended October 31, 1952 COL. A V ITEM 1 COL. B CHARGED DIRECTLY TO PROFIT AND LOSS im j Ta Cost* or j Operating Expenses Maintenance and repair-" I Depreciation,'depletion,-and amor tizatibn Taxes: ! . Pay rqldj taxes: Re AT -.ana' per sorml... aiicl~rni s c ellaneou s - Rents-- ote A Royalties .--- - m t Management;and -service -contrac fc . fees;: I` $2,598,943.52 1,965,339.07 259,395.79 564.944.37 $-.824,340.16 65,311-79 145,528.24 -o- 102,444.87 -o- * 172,631.63 - 324,651.59 $ 497,283.27 394,189.30 --O'* -O- Note A - The aggregate! annual 'amount of rentals upon real `property now If to the Company and 3 ts subsidiaries for t t'-rnu expiring-morq than three years a ' the.date of filing is'not .significant. ` -.4.-1 > `4-.t K* c am SUPPLEMENTARY PROFIT AND LOSS INFORMATION m $UDDEN COMPANY AND, SUBSID1AR IES: i i-. ' . ?' Year ended October 31, 195?- e.. <t7 _ . COL. B i CHARGED DIRECTLY TO ! PROFIT AND LOSS .'i- a) i To Costa or | Operating Expenses (2) 3; Other 598,943.52 1,965,339.07 31 259,395.79 564.944; 17 $4 ,824,340.3 6 65?3H.79 145,528.24 -0- | 102,444.87 , -o- $ 172,631.68 - 324.651.59 $ 497,281.27 394,189.36 -0_0" . COL.G ...'f'W'-.' COL. D ! CHARGED TO OTHER ACCOUNTS r. CD Account .. (2) Amount Total 1 . ' : . i . . :. ~0" "O" $2,701,383.39 1,965,339.07 ` ijp 0 $ 432,027.47 . - 889.595.96 $ -0- $1,321,623.43 ' -o'. -0- 459,501.09 145,528:24 ' -b- -0- rentals upon real property:now,leased expiring-,more* than three years after