Document N2LjMX6N4Xj7n33r8BM4jzgNb

tmt 10-K \?vnwm% to Section 13 or 15 (A) of U par tbe Pineal tr Sated Octsrfeer 31# 1990 - CCWAM - 1396 tteion ceaaerc* Building Clovaleiid* c~r,1ii--jrfr.r'it':; ' 'V.wi.'i ! ' ,l.-4^; l'`v ^.^j j mk s k $$$$ -I ?I 'ft) , 'v. ;' - f $tt3* r*' S*;;VOBmw N* lV*lSW5tt% -: -jwr TOixsffl^_ QmntklbtMt freS&WPoA Stock,, ^ CoraalAtiw $$&$> Uk p Vela* AMSHB& - mm\ h**` oocurltto* of osioaaed t'lgl**''", 4-i->( MMmmssL 4 i i.nlBSWBSfirTrrii^SS^i J!#S U9$h,5W S1 Boro* 4 ` St*-" Uasefc tfeack IfKS * -* H> Sg^K4r44- ., HS&Jj* -*% Stato of SK^p SMIv q . Stock ns&| eoesaor* utt*4 (l) 8. ^ ColtcggB, &*.A.. Hie* (1) ................ B fiSpelta coj&oasr (8J ............................. .. free Coopasgr of CUlaoia (2) * >................. i# oc ($} **-,<>.*. ;oeMU5ar (3) * **' Gmtm& Pr&vota CoK^Mtugr {3) .......... Oatarlo nflrtdo Oteto . nitsoii florido * . lS.Bsi#stppi" 7 AU Ml All All All 58 .'. : CD Actito .B^eidlorlws- inci^oa lo^ooeoitdotod ftoonctsl w ,(2'X. iMctive ooboSAisrtaB laeloSed to oil ototemoto. - {%) Aeti* etbelglortoe ofcick lam ooi booa lceloted to..aigr _ - 6ro^orcowolld6'bodrtafceBtoM;f^ * not ftlei* - *!& oesgojp^^ Bcoaool1flato& 2>- : otAiW!^' 15$ of tfea. 'iter rigirtMBifc ^oat . :' fibm by tto ro^traat^ coi^ltfto^ bolaoc* ek**t filed with this :zogjH^*:^1i^Hpr0al*;;gra^ dooo cst exceed 15$ of .tfe ^aSP!Bt*; grese '*war:of end its coasolidoted eobeMIsrlee.** show* by ttorngUftemst'* eoa^ 4^ Xtea t.. 7 -4m tM (. nearo M'Oatirtclly'ilapca^oni.;*^^ to ^'loetoeM ;of :tbo :roeo^^ ;^SafeSjwpS^sw^;-K-4^:. - >;-,::"4> ^;-':r';;.-:::4':.:/;''v.;4--4;-4 <4, 89 of director - - Collate millm m officer ' Mriea.d. Joyce 139$ tJndos Ocaaerco Building Street: end Clteirisao Ctsvtltadf <M f yet Board cf Kl- ^ restore JSQCi{!C7v Might ?- Jcye* 139$ t&lott e-wnwrce BntMiag , Director, Praei&set e&S. cieroltyea, Ohio ........................ 8*esf9A`lteaB?*'^*&-" ~ ....awfeer of fiweafciw Clifton Jt. Jtelb 139$ Sale Cleveland, Ohio Building Director, Senior Vice Pretidaat, twttey, of Iteeutlve Fasti Spragoe 139$ Mo b Cowarce Baildiag Clcrclcsd, O&lo ;-;.^: ' Director, "flea FreetSost, Aealetant to the Preet- '^,.J!SM9Cl!rtlrtW*-; CCMittOO- ' .; '* t HUUn J. 0*3rtea , 23$ BatMiag ; Streetcar ea&Viee Freslta* U Beatty ; W'. ; j , . - * . K-y.- . sm& :riftb Street ; Brfaeler> t^ll^ereia' ^UOSL' MUtfoa Clmlaoty Ohio - Vie* President director sad Tice Freetdsat' Lovell ?. Falllea .1393 6. Shelby .Street -' Louijwin*^'^ : Vice Freel&eet Jain ?. Stttfc : attend, CMo BolMin ^^Mreetor 5. BffitcoU. a. Soleetb ,,,, ^ - 139$ Sal^'Ceancrce Building cterelaad, (ftic' o* 51$t If. tfe&taf Street ;Oble^pf.nitaai*'';- ilKS0l\ Director end General Salsa Pood Jeehg9 Products DiTieto "Tice - PrifiHii: SliillllSllK v?-v5 or ofgfasr. B. 8* SI W, W CoaOBt '; - ' ' !v.*_ - B. B. fisrotr *V - *7< 'A I 11001 fttefiisoa *vaa ' &**&** &*/[,s' -i 133$ tfelea Owntrco Kalldtag : Cl4WiaM, (Mb' , \'? ' - * msii* - ' ------- " *5'5S#S|0<,^tj-...,.'.......W... '. c *\vi ** Bwlag Vise 1mt tin yars all of the eascutiw ..tittime*'. of~tte - Oos&oagr tem boss* cctivtl^ engagsd i& tbs basiwcs iwAiUEfblro of t&s Coagwtisyj, 4tb tte omeeptl&a of Hr. ft* $. Ctoleotfe abe Bait boo pwwiosm- ly wmarteed. co a Blrsctw e& Vico frowiasat off tfca rogfsfcroat, 'la Fera 10(a) for tbs flow! yoar coded October &> Xtca 7. lagamlflcatiett of Btrcetaara m& Officers. o rmigSBSfcta those r^)rt0& la Jamaal leporfc oa Fowa 10(E) far tM fleetl year faded. etaber 31, .* '' Itca 3. scaaoargtloa of Btrocteare waft Officere* '' maa oflt^lvtSaalaad > 0opacity la ablcb iaeaamxatloa tme Eceetiiwl, - . car Heatfty of Proas ^ Assmct of Hail : ,. ceayeay* .---, :EetttM to/ Coatrilmtion be Feygbl la* Afiptt@Bte Oder ' tlj 8fR& of ftoBroegft&twv^ flaw .----;:. aotl3rcm^t(all ': ": 'Cbair--of Vm BearA-'end ^HSbSaf^ :^f"ead:::Jfccbe^^ V';.r:; SOatt:i`' So bs Otrlgfet i*. Joyce /flfrectdeat flwf Cei&ejral. - Haas? ad Bteeeter 75,300.00 - $ t,l40.00 $u,c^.oo Ciiftoa H. SoJ ; :Sealer-- Vice Proci&Kft m& ~ ~ -y Blroctor _^355S`00 Focal is. Ssarefto* . - -/ ' ' Vied Fresldeefc cod- Bisector W,5Q0.0O \ . t : -# '. 7^35.46 10,675-63 ^ ':-V. >.-l'^ 9,asfc.32 . U,0k4>.C0 Jobs A. fetors freeearer sal treater 3$i$09*09 : ^iSSi.07 `'k'fOto.OQ ' milfflte f.;- >,f ' ;. * Vico Pre&&eat &' Mrocior : 7,167.04 U,&0.0O Ooba V.:Vtfe "" i; v;:VleO:i,fri8J4tef `aof^01reetor;':; J5#550'^^ 5*515.53 -11,0*0.00 'i, `* , ; \: -i^'&i ".. -r-...r... '~j~"jr--............ x mamt of aekaI I &m ef individoalacd - - cspmtr i&.vfetefe ;V/^ IMttaiii'MM,', ____ gUMMftWfcjfi ** 'i1. w ' -* ~$l? *&&* ^f> ;b*Pay* > **ral*e^^^ > >iSfo ggffiSlfflL. m*SS8*3iSS' Ja^agSSSlfeL' V 1 ' v v. '<'" - ' -f -t 'si* * -f -v'*1 '*V'+ ' Vice President oM'jsireetor #S7j iMvmll Y. Puma , Visa* President <od Birector 27,<*.$> Bwitar B. BttSolA Oenarsl Sale* Stagger food `L'Seehaot Protests Division t eed tractor 28,090.00 .. .,,. '^srsJ^ M \ \ c' ;* io*oto.co * '^S *" *('"'*'T t'y 'tfjr "A*' i iS^;i#SS|fl||iB4A 4^^$l 3,900.88 10,8*8.00 i^sd^W^Gelee^ .:, Vice ITesiteat and Director *0,503.00:: All directors sad ffleera as.. . grow (iKcluaing tboee . MWisbOM) iV6.Sl6.-n '. . ' .. ;, .". f 1 . .; , ' " .. - V ' 36,516.9* (a) Tfao lafareatioa <ilven in this celusn as to officers participating is the Ketirestent Plan in hosed on the xsayticn that each officers vlH continue to receive the ;prcaeni rots of aw^eesatloa until retiveoent at se- 65, that they fio not at ary tine frier to retirement date Ala -or vitfctatr froa Active service vith the Coapaay, and that the Cotqpanar continues Its eontributtoas to -the Hetlr*aat Flan on the present basis. Oaring the fiscal year ceded October Si* 19-58 so director nor officer of the registrant at *tey tine received re&naertttiea, directly esAodireetly, fro the registrant or ita shtasMisriee is the for of securities, t#^ ticss, rarr&ats, rights or other sm'qparty, or t&reogh the exercise or dis` :peeiti0ttv.thareoP4'''-except as stated in Item 13. !lsa.%- BcgaBeratloa of .Cortale;.Other 'Peraiocai :. * r * ;** * , -'"SEet fQ9lieihle- ' .= ' . 'lJ&t<?regt ot. r4^gKt :cM Otterc-la Ccrtaia frsasaettoaa. ,';;V -;. ^Sgpilcshls, ; .J ; ;;;.. ..' ../;,: .Itjrajyi. ^iBcigsl,,glders of Seditr Sccurttiea* : Be yorsoe is haovn hjr the regi^treat .to era hessfleisUy* 10Jl> of say class of equity securities of the registrant. is of hecea&er 1* 19^3 all directors, end c(Oifflfeiceerras of the registrant, as a 6rw^awnM 65,526 oherea of Coseson Ctoch vithout par value of the v corperatlcnL* cessUtutlag 3?1 of the ehsves eutataadlsg. 159 sharea of k?l/3& -cusml&ttve Preferred: Stock, verc /held:by -d^nectere and offiBr ; acd erastitute' loss thenr om; 9r' ceat - of the clasc. of share* mrtstaafit^. ` . .* ' .............................. ........................................................ .......... .............. v < ` 1 ~ v v ' ,,, * '< v ' ?.' -' > t.V` . V::;-';;>;`.-.`4V:f;?.!f* Coasos Staefc* vitfeout 1 p*jf \r,X5i Caavtirti-ble Preferred- Block*^'Ww Wt W* mSWSPefcWr * mwUe# W"M W* MP> k-l/2* GaoUUw, $50.00 V*** -< ** nc^'- t -*. m&M* In l$4t the ffl^way emm 51 offleer* wad bey eoplcyoee options to purchoee, at assy tls' prior t*> Mmlbev l, 1952* 13*200 atarco of. Gemma stock of the Cas^atsy at a price of $42.00 per shore. ` dfter cut* Swmmt to iv effect to the split*up of the oenjo $teek ta'l$h7* th 2$ stock dividend distributed on the Coamoa fteek in 19*$* end opticas exercised* there reoaissed owfc*rtmi&iB& as of October 31, 15$0* 14*09? shores of Sreaeury fftwh; sdb^eeb to optica &t 0 price ehieh is aotr $20.5$ per etee Sat option ore im-aeetjpM&le ad temtaete VItea the &raat ceeeea for e*y reason to be splayed by the Conpsoy, essespt that la tbs event the rat* diee* the option ay to exercised by heir* or pereeaal ropresmtoUvee no the earn my be vitbin three aths ftm the date of death. As of October 31, 1#5 options for the parches of 4&0 share (prior to o&Jastaeat for stock epUt at& stock dividend) have bees c&- celod because twe %lcyees holding; each optica loft the Oospsay* As' of October 31* 195$ the following persons mood la answer bo Itesa* 5 sad 11 held oyttscs: as: described' abovej - - ' iSwigfefc S'. Joyce fiO0-ihor- v>' R* Spregw - 300 shares h. If. Puaema- 400 oharas J. X'. Both ; .300 share* Jft. 0. Solsetli SO0 shares ScvllBcotty; 00 efcaree A* of October 31* 1950 uo"prbia held optima* wnrnti or rights ealilog for % or wore of'the total asovtot of stock of the Coopoey - subject \a options* vorraats or rights. -.. <f * ....0* Board of sirmtore, by resolutions 'duly adopted on March 10 and Beceafiber- l5, l&4*: t aside esd eomurhod for delivery to officers *ad key, eeployeea* ^100 ehers* of Comma Stockfhsa la the treasury of thS '6oopasy.': she ^0# creot optlocs for the purchase of thhsd' shares &t the. future but as of haeosdser 31* 1950 so . optloa* re eracted. by tbe-CImlrem/fett'^'t^ v idesiisated -7- . 1 0a Joty 21, 195 the Board of Wwsetore to perch*# e&mtm Coapaay at $aSK*.59 per star* w flM ft os at the electlea of tits coplcy* eeald be sjtfaotttuted Par t&* eld optica, fit* Mr optioawoBM perssit'th* e^lopoi to eearcise fels option &% iiarhtfc paste* ea the dot the epOcavaa of the present option price of $20.59 per taro*1:' wqr lie OMireiaei at wy tia tfcitete fit* year' fro* tb ' option is accepted fey th e^leywr end the espial*s surrendered, s bA gives th asploye the right to pop for over peribd of tea year by diving tits Cteaywty * bearing interest at 3 per eoctfc per esses and secured ty th.>ldG of tbs ttsele so parchaoed. to of October 31, 195 waibprM - elected to negate tbs new sftwn* of option by surreMcrisg fel* option to purctese the -tech. at $20*99 : s / boring the fiscal year,; Metes. B. BsteoM ead Be^b 6.' Geleeth have purchased asd sold Csssssm Stock of the Cosswny vttfcla ^ptalodh^^ in:asaths.i*^^ in profits;:^ th ti&wiw W. -BathcM..^ JiOoieetii, -. .bo';:thfti#-' iati*r:^>pre^ i6(b) of the Sccurttl^ ofi93&/swb's^flts' inm^e to the -beasfti ' ;the eeepasjr.-" to4-i;.sro:" recoverable by; the Cosgstyif. -suit- fori;;:.: ' the recovery thereof is t*tittttfi vitMa two years' after' sucb profits: ." were realised. -:' - She COBpaay, however, doca not, intend to:.- institute salt asaicst either of tteee- tw prntlcsweQ for the recovery ;of eeh profits, inaBOaefc euai all of the ptbw of Camoa Stock by tltea ^ariag-.th : perioSB'ias-olwid vere purcbaiseB froa the^ .pursyest to option fcteeinabov referred to granted/to then by the " ia %$&Ttv and tha a^se#eat' believes' that. the; '-'profits- mlisd fey on tbe si^k bo purcfeiSCii 'vesre. earned Ijy tte and that they ere- mn&slto to reteiniauch;/^^ S.\-r-` ; 'ites' i^.:,;;'?ineacini ^feafewfe&s' and, 'g&shibltcy' (a) - l^oataciol otatosests* ac^omteXy bound, eseo^iassy this report. ' - / agsau ;r..^ Pornasmt to tfee ro^nireneste of tbe Securities XatebM^e Act of < 193^ > the registrant has duty caused this ennual report to be signed oa its behalf by tbs. uMersi^jaed thoreuato duty eotherieed. SEB GLIDBKS! CCNP^I <. ty Clifton M. ioib'' /" : Cenior vics-E*eidat acd-Secretcry; Consolidated balance sheet' - ', Statement-of consolidated profit and loss . ' Statement of-consolidated surplus ' Schedule V - Property, plant, and equipment Schedule V-A - Reserves for revaluation of property, plant, and- `equipment ' Schedule VI - Reserves for depreciation, depletion, and amortization of property, plant, and equipment . Schedule XII - Reserves ` Schedule :XIIc.-:;^Capital^shares Schedule XVI - Supplementary profit and loss informatics ' v. \ .' , . {, / ` -, ' :-`- omitted: The following statements and schedules have been Schedules I, 'II, III, and XVII, are not required under -the .regulations. Subject matter for SchedulesIV, VII, VIII, IX, X, XI, . XIV, and XV is not present* The Glidden Company (parent Company): All of the conditions outlined under Item l(c) of instructions as to financial statements for F>rm 10-K annual report are met in this instance and the finan. cial statements and schedules of the parent Company have, been omitted. Board of Directors, The Glidden Company, -Cleveland,. Ohio. ' 1 ' ` r We have examined the consolidated.balance sheet of The Glidden Company and subsidiaries as of October 31, 1950, and the related statements of consolidated profit and loss and. surplus for the'fiscal year then ended, and the schedules. 'listed in the accompanying index. Our examination was made in accordance with generally accepted auditing standards, and ac" cordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the -circumstances. In our opinion, the accompanying balance sheet and statements of profit and loss and surplus present fairly the consolidated financial position of The Glidden Comps?hy and subsidiaries at October 31, 1950, and the consolidated results of their operations for the fiscal year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that' of the preceding year. ..Further, it is our- . opinion-that, the schedules referred to present fairly the-information- Jtherein set forth. J v Cleveland, Ohio . ;` December ' i8, 1950 Y CL-'-'X-Y -r u ERNST & ERNST . Certified Public Accountants C ONSOLIDATED BALANCE SHEET THE GLIDDEN COMPANY AND SUBSIDIARIES ''V October 31, 1950 K S@S%4 ASSETS CURRENT ASSETS ^ Cash on hand and demand deposits 'Dominion of Canada Victory Loan Bonds, - at cost (approximate market) $ 5,^12,295.09 143,898.34 CURRENT t&^Accour "'Wages ;/- Pay-jrc Trade .notes receivable $ 242-, 736.9*+ v>: fpT>urlD o/*rrnTrh c ' , receivable 15,010,532.32 $15,253,269.26 '^ . - Other - Accrue i - Tax* Less allowances for doubtful Roy; v accounts-Schedule XII , 505,718.79 14,747,550.47- Ins- Inventories: Feder. Raw materials $16,929,992.95 Finished merchandise (includes minor amount forwork in process) 13,485,796.33 Supplies 679.222.64 31.095.011.92 RESERVE For c Principal raw materials are stated at cost (last-in, first-out method); other items are stated at the lower of cost (ac cumulated average) or replacement market Other current notes and accounts receivable, CAPITAL -Capit Co d a advances and investments ,2,-638,,325..OS TOTAL CURRENT ASSETS $54,037,130.91 OTHER ASSETS Advance payment on account of possi- . Cor ble federal income tax assessment 1,000,000.00 Cash surrender value of life insurance 765,605.00 ; 1-V.f.: . ( Miscellaneous investments, at cost or less (no quoted market prices) 129,729.00 ' ] r Miscellaneous notes and accounts receivable and advances 558,267.02^ _ . t. Estimated refund of federal and 4 ... '`Capi dominion taxes on income of prior years 248.511.17- -- 2.702.112419' Earn PROPERTY, PLANT, AND EQUIPMENT-Note A Land,--buildings, machinery, and - equipment at cost or. \- appraisedamount- .. '' Schedule. V-. _ ^ $48,708,103.39 "Le'ss..reserves for. dr-- su ac ' Less - sh sh of 'revaluation- Schedule V-A ' 3.153,921.75 $45,554,181.64 Less reserves for depreciation, de pletion, and amorti- zation-Schedule VI 18,632.139.78 26,922,041.86 See pi DEFERRED CHARGES note Prepaid, insurance and expenses 649.968.61 - $84,3-11,253.57  LIABILITIES. CAPITAL SHARES: AND SURPLUS CURRENT LIABILITIES Accounts payable, trade ' ,f $ 7,104-,321S36 Wages-and commissions . : - Pay roll and wi thholding taxes - ' ,TM - 1,02258825 67lf^ ^ 304.';176* mother.- -current -liabilities ` 89.060.67 $'''8,520, Accrued liabilities: Taxes $;. ^390,169^2.2# Royalties, water rent, etc. Insurance ~. : '135,959.55^:^ 24-2,939.21.. - 769 Federal, state and dominion taxes on income, estimated : R27 T OTAL CURRENT'LIABILITIES *' ' $15,617 RESERVE-Schedule XII - For contingencies-Note B J;'2,56o CAPITAL SHARES AND SURPLUS . v Capital.stock: Convertible preferred 4-$ cumulative, par value $50.00 "a share redeemable at $52.50 a share (aggregate, /amount $10,4-75,850.00) each share convertible into approximately 1.4-98 shares of common stock: Authorized 200,000 shares Issued and outstanding 199,540 shares Common without par value: Authorized 3,000,000 shares Outstanding, including treasury shares 1,994,585 shares Reserved for, conversion of preferred stock 298.9H shares Stated, capital Capital surplus-see accompanying statement '$ 9,977,000*00 " - .. 4,986,462.50 17.7^2.. 104.40 Earned surplus (Includes $2:677,34-4-. 52/of ; surplus of Canadian subsidiary)-see ".`accompanying statement ' 'Less: common- stock in treasury 22,962 shares,vat`cost (including 19,197 share res ei/Ved, foi^?sale to certain & officers and-key- .employees) [33,988,203.01. v `' 4-89--.6lO.25 ^3r498f592;76~ 66,19 See principles ..of consolidation and . notes-to financial statements. - HSiSSiiiSiSiiiH ` ' LIABILITIES. CAPITAL SHARES. AND SURPLUS' ILITIES ayable, trade $ 7,104-,321.36 commissions nd withholding taxes 1,022,882.67' ' ' _ \ 304,176.44- ent liabilities . " 89,060.67 $ 8,520,44-iaV/' abilities: t 390,169.4-2 ~ -- s, water rent, etc. . . :e ' - . ^ 135,959.55 ' ' - ` ^ 24-2.939.21- 769,061.18 :tate and dominion taxes on income,'estimated --6*3Z*584^t i-,, TOTAL CURRENT LIABILITIES $15,617,093.91; dule XII lgencies-Note B , , . '2 500 000 00 1ES AND SURPLUS ' v" ;ock: * ' Lble preferred 4$ cumulative, par value $50.00 :e redeemable at $52.50 a share (aggregate ; $10,4-75,850.00) each share convertible into cimately 1.4-98 shares of common stock: aorized- - 200,000 shares red and"outstanding 199,540 shares without par value: rized- / - 3,000,000 shares anding, including treasury res. 1,994,585 shares ved for conversion of preferred ck 298.911 shares d capital urplus-see accompanying: statement rplus (Includes $2,677,34-4-.52 of of Canadian subsidiary)-see .nying" 'statement $33,988,203.01 ion- stock in treasury 22,962 at cost' (including 19,197 reserved for .bo ..cer-ta-^n *s and. key, employees.). L. _ ^ 489 T 610.25 $ 9,977,000.00 4-, 986,4-62.50' 17,73.2,104^.40. $32 695,566.90- . 33,4.98,592.76. / .. 66,194,159.66 pies of consolidation and' f inane ia 1statements. \\ Gross sales, less'discounts, returns and allowances ................- Cost of goods sold, selling, adminis trative and general expense's- Notes C and D: Cost of,,_goods sold Selling, administrative and - general expenses Provision for doubtful accounts ($352,784.08) less recoveries ($135174.66) on accounts charged off in prior years- Schedule XII $188, 607,965.'92^ \ $151,877,859*^4 22,164,123.99 'l_L ' ' Other income: Profit on storage, processing, purchases and sales of miscellaneous merchandise $ '128,276.93 Miscellaneous 256.587.30 - 384.864.23 - 1 14,733 237.30 Other deductions: Loss on advances .to and investments ' in affiliated companies $ 214,966.13- 1 Interest on notes and loans . . ^ ___ 80.611,09 . 295,T 577.22 PROFIT BEFORE TAXES ON. INCOME^ . $ 14,437,660.08 Taxes on income, estimated: _' * Federal income taxes-Note E $ 5600,000.j00 / Dominion and state taxes ______ 276,000.00 5,876,000.00 CONSOLIDATED NET PROFIT $^8,561,660.08 .S'e'fi' pr Inc.ip.les,of consolidation and " ': note s'" to fancial,statements. STATEMENT OF CONSOLIDATED SURPLUS'v W-V 'U' 11 i " ii m mm iib n> tm i ' THE GLIDDEN COMPANY AND SUBSIDIARIES' Fiscal year ended October 31, 1950 CAPITAL SURPLUS Balance at November 1, 1949 Add proceeds of sale of 178,535' shares of common stock In excess of stated value of shares, issued . , Balance at October 31, 1950 . $13,270,513.,,4l ^ " 4.461. 590.99 * $17,732,105140 EARNED SURPLUS Balance at November 1, 19*+9 Add net profit for the fiscal year $29,785,805.32 8.561.660.08 S3B, 357^65750 Deduct dividends paid: "Convertible preferred-$2.25 per share$ 448,983.29 Common-$2.10 per share - 3.910.279.10- 4,3^9.262,39' Balanc-e'at October 31, 1950 $33,96B72037oi See notes to financial statements. PRINCIPLES OF CONSOLIDATION AND ' *- , NOTES TO FINANCIAL STATEMENTS , THE GLIDDEN COMPANY AND SUBSIDIARIES October 31, `1950 - 8*JfS8 .'-- "V W 1 ' M ,1.L, Principles of consolidation: ,, ' v *" v s ' lr*" " '"* (a) Inventories include small amounts f-inter-company profit which are not significant and have not been-eliminated because it is no't considered practicable to do so. (b) .During, the year the parent Company acquired by purchase all of the'stock of E.-W. Colledge,"-G. S. A., Inc. The companies included in the consolidated`financial state ments at October 31, 1950, and for the 'fiscal year then ended include.the above mentioned company in addition to the companies included in the -financial statements for the preceding year. '~ ` Inter-company sales have been eliminated. .^ .(d)Assets of Canadian subsidiary included herein comprise net current assets and miscellaneous other assets. ' $1,896,553-77, after adjusting for exchange at October 31, 1950, and property, plant, and equipment, $563,989*03, at cost to the subsidiary. The net profit of Canadian sub sidiary/ included in the consolidated profit .and loss '. . statement amounts to $37^,331-91 after reflecting ex- -change adjustments. (e) The equity of the parent Company In the net assets of`. the Canadian subsidiary^ as- shown;by Its books/at:October; 31, 1950, after appropriate adjustments for exchange* exceeds the parent Company's investment by the sum ,f. $2,677,3*+^ 52 This excess represents ;the:undistributed earnings of thd subsidiary since date of acquisition, and is_added to > / earned surplus in the consolidated .statements. Reali- * . zation .of such undistributed earnings in United States funds is subject to restrictions upon exchange, and may . - 'be reduced through .deduction of"income taxes payable .there- . ' on upon receipt by parent Company. -' '"`I''' The' equity of-the parent Company in the/met assets' of E. W.' , ' 'tCoiledge, G. S.- A., Inc., as shown by its books at .. ' October'31, 1950,.exceeds the parent Company's investment'; - by the sum of $17,058.95_ which amount represents the un'distributed earnings o'f ' this subsidiary since date of * ^acquisition,' and is' added to earned surplus in - the -' ."consolidated statements. . . . . .- Notes: " '- x.. .......................... . ", , _ ... iV . * .. .... * ,r Note A - Property, plafit, 'and equipment .are- stated at- cost or appraised amount les's revaluation- and accumulated depreciation, depletion, and-amortization. The remaining portion of "unrealized appreciation -.(approximately. $1-, 60CT,00.-00) included, in the gross amount of these . assets is - off set by. a portion of the .revaluation reserve' which reserve was also provided to further reduce the recorded amount of certain assets from cost to estimated, values . prevailing." during the year; 1932-as- determiixs'd. by the-Board of Directors. _Q$st of property, plant, and equipment represents principally, cash expenditures, although certain properties'-were- acquired for stock. The .net amount- appearing in the consolidated' balance sheet is not intended-to represent the .present Values of -- the properties'. . . - .` ' NOTES'TO FINANCIAL STATEMENTS Note B - -The reserve for contingencies has been provided primarily for possible additional assessment of federal taxes on income of prior years. Note C J- Inventories at the beginning and end of-the fiscal year, in the respective amounts of $29,124-,601.28 and $31,095,011.92 used, in the computation of cost of goods sold-, have been priced as described, under the inventory caption of the consolidated balance' sheet. -~ : Note D - Depreciation, depletion, obsolescence, and amortization: The policy of the companies with respect to depreci- _ ation is to provide amounts considered by the management, as fair and reasonable to cover wear, tear, and deterioration of the property on a basis of specific rates as determined. It is not certain as' to what extent obsolescence is covered in-the provisions, as changes in art may result in shortening the useful life of the' property. ' 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. * Provision for depletion is computed for each unit " of production, based upon estimated recoverable ore^ ." Expenditures for maintenance, repairs, and renewals are charged to' operating expenses, and expenditures-"for betterments are added to the property accounts. - The recorded amounts of properties retired or sold ar,e^charged/to. related reserves for depreciation and revaluation . ijifOsuch :'re.t'ir^ent s or disposals were/ contemplated . in: the. determi- /: .nation-/o-f depreciation rates. -.If such retirement s<.-or-/disposals/'. \tere mo t - /contemplated, the as set accounts and . related /reser..Ves for/' / depreciation and revaluation are reduced.by amounts included~ therein -for-such properties. Note E - Federal- taxes on income have been estimatedtLh accordance with provisions of the'.Revenue Act of 1950- "The Company does not anticipate that retroactive tax legislation will require* -any significant change In such estimate. > >1 -, r ! Note F - Reference is-made -to ^Schedule XVI for information a-s to charge's, .for maintenance, and repairs, depletion, de>r eci a tion and- amortization, .taxes (other than>income taxes), management and service contract-fees, ..rents and -royalties. I + 4* .' ` , V SCHEDULE. V--PROPERTY, PLANT, AND EQUIPMENT i , t' , , i t i't'-'Hu , , ,,t 1^~, 1.- 11!'KfSj'v <i`:- ' 'S.?!:'!i;* r\tv:Ti j " - THE'GLIDDEN COMPANY AND SUBSIDIARIES ?s - Fiscal year ended October 31,`1950 1 COL. A 1 I *11 i N> . CLASSIFICATION. 1 j: "it* . ' ; s* ; ', - ' w ' COL. B j COL. C ; Balance at Beginning of Period Additions at Cost''' >Ore lands and leases' . Land i . Land improvements ,t Railroad sidings .Buildings? i Machinery and ' equipmeivt' - Furniture and'fixtures Automotive equipment . Construction in process < , i . s Note A - Total additions and deductions for the fiscal year amounted to $3,330,050.64- and-$707,365o9*+ respectivelyAs neither the additions nor the deductions amounted to more than 10# of the closing balance, information required by Columns B, C, D and E have been omitted. UI^E V--PROPERTY, PLANT, AND EQUIPMENT 3LIDDEN COMPANY AND SUBSIDIARIES cal year ended October 31, 1950 '4*1 . : - j '-ft /'V-"'r'` . '. av , v/V ' '. COL. B Balance at Beginning o Period COL. C Additions at Cost COL. D Retirements ^.or Sales's;;/:#^:?#:' Other Changes-- Debit and/or Credit*-- Describe COL.F Bala.ce at Clone 0 Period , 1 lor the fiscal year amounted .......... y. As neither the additions of the closing balance, E have been omit'ted. :' . -. v ^ ........ .- .. . ,.s... ...t .Vi....-.'!,...,4....:....,,.-, ...1 I.:, , $ 240,034.84 ` > , 2,671,718.^1 1 424,296 061 a 196 ,.042.161 15,77i; 588.26 26,579,970.01 . 1,351,432.04 * 272;254.33 1.200:767.47 TOTAL $48,708,103.39, ----,------- ---- ^ i mSMm eHi> illBhi ERNST tk ERNST -;v`Vv ^:-,* 7\V:;`iV':-^'v."':r^'^\7 v ,.'-V SCHEDULE V-A - RESERVES FOR REVALUATION THE GLIDDEN COMPANY AND SUBSIDIARIES - Fiscal year ended October 31, 1950 00 COL. A CLASSIFICATION COL. B -- BALANCE AT BEGINNING OF THE ' FISCAL YEAR AS PER . ACCOUNTS COL. C . coL. fi ` * ' .> RETIREMENTS ADDITIONS . RENEWALS BALANCE AT TO AND MAJOR' CLOSE OF THE- RESERVES REPAIRS FISCAL YEAR Land $ 454,718.99 $ -0- $ -0- $ 454,718.99 Buildings 1,547,379.17 -0- 5,861.39 1,541,517.78 Machinery and equipment 1,126,555.01 -0-. 4,145.19 1,122,409.82 ~ Furniture and fixtures 28,935.39 -0- -0- 28,935.39 Railroad sidings 6.139.77 -0- . -0- 6.339.77 '' TOTAL' $3,163,928.33 $ -0- $ 10,006.58.$3,153,921.75 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 cf values during 1932 as determined by the Board of Directors,, ERNST & ERNST 5;::..V \ -1 - t SCHEDULE VI--RESERVES FOR DEPRECIATION,.DEPLETION, /' SCH ! OF PROPERTY, PI, ANT, AND EQUIPMENT THE GLIDDEN COMPANY AND SUBSIDIARIES . i .l V. . v - . . . J . > 4** Fiscal year ende i October 31, 1950 'VV . ; ''-v " p 'r2-: J P7; p- "'HPp f.., -Pi!. rv. ' v;P-; V/P 7*. -, COL. A ^----------:--;--------- ------------------------- p jm - ' . , DESCRIPTION \ , COL. B , Balance at Beginning of Period COL< 0 '. . ADDITIONS CD Charged to Profit and . Lo bb or Income (2)- Charged to Other Accounts--ODeicribe s; 'Ore lands ajnd leases Land improvements . Railroad sidings l Buildings Machinery and equipment Furniture and fixtures Automotive equipment ki TOTAL S 12l'701o13 182,017 <=04 ' '34,959.92 4,358,849* >+5 11,937,026,,01 . 691,000.63 ' 147 f. 712.18 $17,473,266.36 5 16,136.5- 21,960.9!'' V4,012.3' 375,104.71 1,215,284.8j 71,973.62 49,372.4.-. $1,753,845.41!_ mmm -ow - it -O- -o-o-o-o-o- VE3 FOR DEPRECIATION, DEPLETION, AND AMORTIZATION I. PROPERTY, PLANT, AND EQUIPMENT j L]d d e n c o mp a n y a n d s u b s id ia r ie s zil year ended October 31, 1950 H? O O '1 ADDITI: O:rN-S . Cl) Charged to Profit and Loss or Income r (2) Charged to Other Accounts--Describe - COL.D 1 * ,j t ,, DEDUCTIONS FROM RESERVES (1) Retirements, Renewals, and Replacements | 1 (2) I 1 Other-- j., j Describe ' * " COL.E " / 1 tl " Balance at Close of Period ;; 16 I360 51 21,960,,95 r 4,012,31 375,104,71 1,215,284,82 71,973.62 49 872,49 01s753,845,41 P -o-o- 9,893?94 4 -.0- 215,68 -0- 84 j 596o64 -o- . 444,255,13 -o- 39,815,33.. -o- 16:195,27 -o- 5. 594,971,99 '$ C" -o- p 137,837.64 -o- , 194,084o05 -O" , 38,756.55 -o- 4,649,357.52' ;. -o- 12,'7__0_8,7 0-- 55:7a0. ..........'... * -o- 723,158,92 -o- 180,889.40 ::,, $1!i 532,i 39.78 1/ v. Si totCooD Oto toi ,PO5 cCDt 3o c+ CD to S 1 O . ta I1 > 1 o pCD tPtoo* CD to . . ' fr' O>' no P 'H P tino. " 'Oto *CI * .... O PP**' .~:: Po -.. -0 C4D.-'. ' to to hto" O P ; .. PPD>. ' CP-li.pin c+" 3CD P CP OP} P O .0PP3 tPo- to P P tPo pQ4w-'' \opP too. p . ptwo* . oo p pccn+ O4 . oP* opC0D) 3p" p o ct- ppr < cd PCD to. tOCoD ;op; too pos3in 'PP<*.PpCD' O' CD c+ P Or+ P POCD i Opttoo.! Mo , to 03 HCD OC. T0O3 05 P4 P* P CD . *-p4. opCD cCD+ 'c03+ p to p MC+ 03 c+ , Ho.- t40o3- "O0o3 Or+vPPs1. PH g i-3 '.0OO3 tao.; O P .CPt/o3. o --Hi' to Oto . srw.' CD ocO.+ Oin PO .4.tCoD cCnD oP'- .- Q. P c1P+6: ' PCD 3 OP" cPCD+'.. .. p P" .'KPcn 3CD HP - P . v. >GO:.. - HPWi .CO MH Q CQ: O -. S5 0o1 ew. * * - CD P' Xo pp* . - TpCO:DV ;. p CD OXCiinnD O to ' IlIlII >l\) IIIIIIIHVOOJC II O . .' ^ / P 3op ccPn+ l. II O IIII o II o IIIIII o II '^ -7 f- M v4> 3 CO . *v4 n --<ri VCOOO^OJ ..... v0 n . 0IV) Oa J O O .0O o o ON O ro ro o o lO/Nj' -r -o U) oCD . oo H . P ii m " ,HH ii ii O . ii ii CD ii cto ii n' ii i II o II I 11 ii 1 o oi o1 o1' OJ svcton ~O<3D o-r oCO II Sip l11l I1I pSl'll'rJBiffltlf 1II. -r IIII IiIl o1 ii i ii o1 o11 o\1 ! O1 nJr o-r IO o; ll ini 'lili IBflP , . = ii ii ini ii gimnai snH ONUiCO ii vTH/vT ii niI:Iii oii PesHii^iPslii --oPoOsVrOo-O<J] vo j ioO oHWo 0Oo*vOt3oMvoOWOo : +v+n. oooo o o to v*tConD OoHODNVoOO7NN1 ~roouo> O to iSiiffta ii ilSlSilPi ii ro <3 o .cMOn oPPPPM - . 2T. O o to: W 3 2.S . .'! n j. fo02t,.0Wft^ otM. w 5' wH5i` ' J:' * vL-s3 nis e.. . rr- ft Tv m ! >t ,. Ui 'oXv 22.rW > o oPH HpH (T : os s t-* oczo o' ` - wAw HW ;*.v<H<f*t' QOQ0t {A if o o r d i w ' :THE; GLIDDEN COMPANY AND SUBSIDIARIES ' %FlscaJ. ye a r ended O ctober 31, 1950 4 ERNST h EJtftrr' - F-12 _ .' SCHEDULE XIII--CAPITAL SHARES TEE GLIDDEN COMPANY AND SUBSIDIARIES. October 31, 1950 %*MMmSMBiBar mm fyeevS*,<<%M? WMM. m^^^SSBmSmm - ^gBsSKm - JPBf * COL. A - NAME OF ISSUES AND TITLE OF ISSUE COL.B Number of Shares Authorized ' i by Charter . COL.C -Number of Shares Issued and Not Retifed . or Cancelled COL. D . - NUMBER OF SHARES INCLUDED IN COL. C WHICH ARE .<0 Held by or for Account .of Issuer '/Thereof . (2) Not Held by or for Account of Itsuer Thereof c SHARES O'. . SHOWN ON RELATED] - -- UNDE ,,. v c a p h <D .Number j THE GLIDDEN COMPANY Convertible preferred , stock cumulative, par value $50.00 n share 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 200,000 3,000,000 4-, 200 47 . v V- 199,54o None - 199,540 199,540 1,994,585 22j.962 . 1,971,623. 1,994,585 TOTAL 4,200 None 4,200 . None C*s J- 1 | 47 None'*' None T / 199,540 199,540 $ 9,977,000o00 2 1,971,62S ' '1,994.585 ^ 4,986,462.50 TOTAL 114,963,462.50 None 1,000 None None None . 19,197 None 2.91 ^ 8'"S,9'" 1: 4,200 None $ -0- 4,200 None None None 47 None -0- 47 None Alone--- -- - Non. e* ERNST ft ERNST SCHEDULE XVI--^SUPPLEMENTARY PROFIT AND LOSS INFO THE Gljl^DEN COMPANY AND SUBSIDIARIES Fiscal-year ended October 31,. 1950 COL. A ITEM COL. B CHARGED DIRECTLY TO PROFIT AND LOSS , (1) To Cost! or Operating Expenses Other Maintenanie and repair^fv'j ..........., Depreciation and depletion | Taxes: *' / . .1 ; Pay roll taxes 1 ! , ............ Real and personal-and miscellaneous taxes . v i . (, . . ' TOTAL'TAXES Rents-Note A , Royalties # . Management and service contract fees $2,282,03^.66- $ 95,798.31 ^1,753,845.41 $ 254,755.99 $ 138,065.30 ; 472.137.51 226.925.50 60,912.34 180,467^4 .i 319,093.37 5. -o- 1 i .^ ^ * * * .^ * ,* . Note A -< The aggregate1 annual`amount Of re'ritals upon-,real property now leased to the [Company and it's' subsidiaries for terms expiring more than three years after the date of filing is hot significant. wm ms LE XVI--SUPPLEMENTARY PROFIT AND LOSS INFORMATION1 THE GLIJ3DEN' COMPANY AND'SUBSIDIARIES ' Fiscal year ended October 31? .1950. ' , COL. B CHARGED DIRECTLY TO PROFIT AND LOSS (1) (2) \ To Costf or Operating Expenses Other $2,282,034.66 ` 1*753,845-41 $ 95,798.31 -0- $ 254,755.99 .. -/ 472.187.51 TAXES : $ 726,893.50 . 60,912.34 1 180,467.44 I -0- $ 138,065.30 226.928. 50 $ 364,993.80 - 319,093.37 -0-0- i' COL..C ^ I , i *1 CHARGED TO OTHER ACCOUNTS , j <D . . Account (2)' Amount 1V $ 0l V"'--V" r'.-.-lC.: ...O. L. D ` *^ * Total' .** *> v * ~ _ $2,377,83^97'/'. 1,753,845.41 11 1 O f . -0- $ 392,821.29 1 -0- 699.b66.01/ $ -0- $1,091,887.30 . ^ -0- . 380,005'.71 -0- 180,467.64 -0- ;ount of rentals upon rea1 id its subsidiaries lor after the date' of filing" ' V* .* 5- iV*#/ ti -i -