Document VG26o7Vyn6gL1JBy8XbB0RLoN

N11790 iiti Cconoa Stock, per value ^10 lr shore off each aMbM^~`' * > on ^efe/g1jFfeg:rcd . '- .- ' .. . ,' , * Jtew Yerfc Stock. SSceiHmge - xsssl L Title off Clegs ' Comon Stock, par wins; :' itaabcr' off holders 20,758 .& r Item 3*' Fu-esta aad r-tutia.1ta.<arlea of KeKfotrnnt PlaCO Of ; ; . . Stock off. Swfecidiarle Incorporation .: Owned by The Gliddea toapaay . a&roat and Registrant Ohio The Gllddea Cm$>my, Lissitad (1) Durkae Famous Foods, lac. (2) Gli&den international, C. A. (3) Jacksonville Prceeeaias; Corpora-! tion (3) Ontario Illinois Yenecuela Florida All All /. All' 50$ (i);^Activ Bv&eijfrary included la consolidated financial 3tateacnts. (4J' Inactive subsidiary. (3) - Active subsidiaries for vftich separate staiesente are not filed* Such subsidiaries are not "significant subsidiaries" as defined by Rule X-12B-2. . Itetag.^ - 9 Inclusive The registrant has filed with the Ccmlssion pursuant to Reflation X-lt and Rale ff-lhA-3, definitive copies off the proxystatement and.annual report submitted to stockholders covering tiki same period as that off this report.- v ; Xtea 10. Fia&aclsl Ot&teaioats cod Snlxlbltc ' . The foliotriaffi ffinahciil, etatemento of the registrant and sub sidiaries contained in the atunial report of the registrant to its atockholdcrfl for the year ended August 31, 195^ furnished to the... Securities. and 'IhtchsmgeCosKlesicn; paxsaaaTT/O: the. Cooaaisaioa * s Rule' ZlhA*i3, . .aore . iacoporoted.:iMareia by resffersneej ERNST & ERNST - nimjm im ANNUAL..REPORT ON FORM 10-K THE GLIDDEN COMPANY AND SUBSIDIARY - For the year ended August 31, 1956 . -< . . ... Consolidated financial statements'have been incorporated herein by reference, as set forth in response to Item lO^of this report." herewith: The following consolidated financial information is submitted _. . . '. : 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 ; . i'V- - Schedule XVI - Supplementary profit and loss information . All 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 regular.-' tion of the Securities and Exchange! Commission are not required under the re lated instructions .or -are inapplicable , and therefore have been omitted. ERNST a ERNST NQIEg_J.fi. fiONgOLIPATEP FINANCIAL .STATEMENTS THE GLIPDEN COMPANY AND SUBSIDIARY ' Year ended August 31, 1956 'JH1i"iIMsisi i' . msm ::;fS4tmKKKb ayllMiiS / "r^WmIL Note A -'Principles of. consolidation; The accounts of the Company and its subsidiary have been con solidated ,in the financial statements, as in the preceding year. During the . year E. W. Colledge, G.S.A., Inc., wholly owned,subsidiary consolidated in the preceding year, was dissolved, and its net assets transferred to the parent Company. Upon consolidation,, all- inter-company accounts and transac- tions have been eliminated'. Inter-company profit in the inventories is in significant in amount and has not been eliminated*. Accounts of the Canadian subsidiary have been included at Canadian dollars. The equity of the Company in the net assets of the subsidiary at.August 31, -1956, was $5,135,989 greater than the Company's investment in the subsidiary, which difference has been included upon consolidation-in earn ings retained -for, use in the business. ,- Note B Inventories:. Inventories at August 31, 1956, were classified as-follows: Raw materials . $12,771,576. . - " - Supplies 2,736,123 In-process and finished goods 22,984.541 TOTAL $38,492,2^0 Inventories used in computing cost of goods sold for the year amounted to $33,701,460 and $38,492,240 at the beginning and end of the year, y' respectively. `~ Note C - Depreciation and related policies-: V'The policy of the companies is to provide for depreciation by regular-.charge's &,' income in amounts considered to be fair and reasonable to amortize-the'co.st of the depreciable properties over their estimated useful lives. Useful lives have been estimated on the basis of the expected wear,- tear, obsolescence, and deterioration 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: se.t forth a summapy'Trfv them, or-of the depreciation rates . Rates have been applied, by the Slfraight-\y"" line method to properties acquired prior to January'1, 1954* and.by the sum-ofthe-years digits method to properties acquired on or after that date. Expenditures-for ..maintenance and-repairs are charged to income.-- -Expenditures for betterments ancL-renewals are added to the property accounts. The costs'of properties, retired or sold (less proceeds) are 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 depreciati on-^a.re el iminated, front the accounts and;,the resulting, gains or losses are credited or charged to income. ERNST ft ERNST IffiS^ClI^S.OLIMIED FINANCIAL STATEMENTS-CONTINUEDi - : Note D ~ Retirement plans: The companies maintain and 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 maximums. At August 31, 1956, the unfunded liability.for past- ; service cost under the plans was estimated to be $4,000,000 and the annual' current service cost (which does not include funding of the past-service cost) . was estimated to be $860,000. Note E~ Stock options: Options to purchase shares of unissued Common Stock, of the Company were granted to certain officers and employees on June 24, 1952, December 27, 1954, and March 14, 1955; no options were granted during the year ended August 31, 1956. Such options, are exercisable within ten years from date of grant. Option prices, were not less .'than 95$ of the. fair, market price (mean between; the highest and lowest- selling prices on the New York Stock Exchange) on the day the options were granted. - . /: : : ' " dat e of g r ant ~ ' . ; JUNE 24.1952 DEC..2.7.1.954 MR.,14.1955 Options exercised: ; No., of shares 640 -0- -0- Range of market prices) at dates options ) 37-5/8 tO --O-- 40-3/4 . . -O- r "0" -<v- exercised ). Aggregate amount: At option price .. At market prices $22,400 $$4,395 V ' - ---o -- -0- . -0- f . - -0- Options outstanding at . August 3.1, 1956 (total 69,'-770 shares) . 27,205 42,165 - '400 \ ' v: In. addition, to the outstanding options for 69,770 shares,* 25,570 shareS/df unissued Common -Stock were reserved at -August 31, 1956, .for options. tha-E'-may. be',grantedI', :.;. ', I,--'-/:>J.. , There have been no charges or credits to income accounts in-1' connection with option transactions. ...... - r. ERNST ft ERNST SCHEDUL^ V--PROPERTY, PLANT, AID EQUIPMENT 'T'TT'T" ' V ' y..-"yyv : 'V:;-' : THE' GLIDDEN COMPANY AND SUBSIDIARY . '! i Year ended August 31, 1956 .. * col :a COL. B . . COL. C V CLASSIFICATION * ' N Ore lands and leases Other land Land improvements Railroad sidings . Buildings Machinery.and equipment Furniture arid fixtures Automotive equipment / Construption in progies's . ji ' V1 *: ' ....O< .. ! "1 i /"nA. . Mj ; ' . > . ' " . " .: - : . - , < -'.I'"; ... ` TOTALS . Balance at Beginning : of Period . $ ' 229,535 2,716,546 660,077 199,295 23,689,062 32,273,821 2,541,295 * . 223,942 1.887.809 $64,421,382 .. . . Additions at Cost $ -0IV ,374 K:,245 1! 1,590 4,7/6,570 4,2:5,629 ` 591,643 18,911 6.612.041A $16,630,003 - - ... * Indicates red figures* ' , ' : Note A - .Represents net change in account . during the year* . v; - . 1/ Note B - Represents certain assets* 1 reclassifjication -V:;yy6y:y oil S * * J ' / . ^ " ' siiilsi1 s c . . :> . '< . t . 1 '\ t.:- .'>-*<./-2''*.:! TO .7' ; v V.- V; yV V: vyy y: ........ f .. .. yi- .j -V ^ V: ' : : i . :.V- | ` , i? c CNBT ft ERNST .-I k\ \ P., i .. ...* . .. . . .* -: " ,-/] ; t 1 - $1 * t 2DULE V--PROPERTY, PLANT, AND EQUIPMENT ' ` ` THE* GLIDDEN COMPANY AND SUBSIDIARY : . i Year ended August 31, 1956 <; A. COL. B Balance at Beginning of Period COL. C Additions at Cost t 229,535 2,716,546 660,077 199,295 23,689,062 32,273,821 2,541,295 r 223,942 1o887.809 ALS ,421,382 -o- 178,374 123,245 121,590 4,746,570 4,237,629 ' 591,643 18,911 Li $16,630,003- COL. D Retirements or Sales j -o- -0- 19,718' 1,183 212,895 830,758 75,337 '71,478 -0- > $1,211,369 r~ COL. E Other Changes-- ` Debit and/or Credit*-- Describe COL. P Balance at Close of Period ; -o- -0- -O- 6,997B 3,434*B 3,563*B -o~ r . -o- .-o-__ -o- I 229,535' 2,894,920 - vnIn 763,604 326,699 28,219,303 35,677,129' 3,057,601 171,375 _8,-499,8jg, $79,840,016 s. r '.SERVES FOR DEPRECIATION.' DEPLETION, AND AMORTIZATION msmm wmsSSM :--iV-jc- * certain assets. m- ERNST & ERNST \ . / v/ ;i '; SCHEDULE VI--RESERVES FOR DEPRECI ATION, DEPLETION, AND AW .7 OF PROPERTY, PLANT, AND EQUIPMENT ! TV THE -GLIDDEN COMPANY AND-SUBSIDIARY Year ended August 31, 1956 v COL. A DESCRIPTION . ' {i . ................ Ore lands and leases. Land improvements / . Railroad siding | Buildings .. Machinery and equipment Furniture and fixtures Automotive equipment ' 1 COL. B v ,:'l . COL. C ; / j , ` '' " j ; ' ; ' 7" ADDITIONS d e: 1 . ' Balance at Beginning I of Period ' (1) (2) Charged to Profit and ;; Charged to Other ; Loss or Income | Accounts--Describe Reti Rene Repl ; : 1 "7 O 1 1' , 1 1, TOTALS $ 169,534 37(4- $ 064. , . 57,810 7,161,427 15,326,613 ' 1,145,385 193,070 $24,427,903 ` |- , ' $ 7,795 ' 1 43,182 5,204 680,134 1,900,216 217,301 16,507 $2^870,^39 -0- 5,108A -0-0-0-0- $ 5,108 ssussassss: Note A - Represents - reclassification of ^certain assqts. mSilj;:;, tt i'fav ' *' - ' ' )' .E$ERVES FOR DEPRECIATION, DEPLETION, AND AMORTIZATION OF PROPERTY, PLANT, AND EQUIPMENT , i. i ! THE GLIDDEN COMPANY AND SUBSIDIARY ' 'p .. Year ended August 31, 1956: 8 COL. C ginning >d ADDITIONS .: (l) Charged to Profit and Loss or Income i (2) Charged to Other Accounts--^Describe >,534 t- s 064 ',810 i 3,613 3,385 3,070 t, $ 7,795 43,182 5,204 680,134 1,900,216 217,303 16,507 . $ -0-0- 5,103A -0- -c-- --0-- -0- 7,903 f>2',870,5$9 ' . * 5,108 in assets. COL. D DEDUCTIONS FROM RESERVES 0) Retirements,. Renewals, and Replacements . -014,675 1,290 195,814 533,824. . 60,481 65,874 $ 871,958 (2) . Other-- . )... f Describe :> ' > " ' ! ..... |* .I j 1 ' p- ,'. -. II |* -0-0-0- I,545A 3,563A -0--0-- 5,108 COL. E Balance at Cl of Period $ 177,329 402,571 66,832 7,644,202 16,689,442 1,302,205 143,703 $26,426,284 TI l - O' *! ** - H ' ; r . aV*7f 5. Note A - Amounts provided ini prior years by charge to income; these amounts were classified as accounts pay' able out may now be settled by offset with account re- ceivaDle balances. .. 'w.- Note B - Accounts charged off. SCHEDULE XII--RESERVES , .JHE GLIDDEN COMPANY AND SUBSIDIARY Year ended August 31, 1956 COL. B . COL. C Balance at Beginning of Period ADDITIONS (U Charged to Profit and Lo g s or Income (2) ; Charged to Other Accounts--Describe -1. COL. D Deductions from. Reserves--Describe * 400,244 $ 190,246 $' 59,349* $ 172,708B 'v , ars hr charge s ascf'JTfcs pay- <.c court re- COL, E Balance at Close of Period $ 477,131 A. ,c ,I - ' " ; ' -"'f> 7; - Vi' 7,7 \ ' ' ' `' : v-.,77' ...v./.-'...- '.i*..vv.-o'.-! ";.":.: ' 777 7'7.77' 77.7;777:7777, 777 1' , T*v- 7- : 77"; .* ; 7- ' -K!: . '* ' ' !' 7` ,7777;.7:v:;--f v - --- ..V 77,:77v777.7'"7 W7-- ' TV y '" " - - ........................ ** , .. ? ' ' ' :7` 7 !7 ' . . . - , Vi .? y: 7- -! ; -77- 7- 77 V 'V7. y..7 77 . 7> 7-~ <i 7 ' 7. ' : . 7 ' :"'J;'7VV- '-:... 7 V ' .'7" - .V-7J7-' ' -V 7: . y-1 7 .. ^ -.77.. .V >1 '. i ' ' 7 :.7.7:"-;:7;7' aERNST ERNST 'V 7 V :W 7 \7 '' . V77 ; 77 7:7v "7. 77,7/ . v.'; -'y:-v :,vT v:y=;i;> : . . SCHEDULE XVI--SUPPLEMENTARY PROFIT AND Li -7' ' X 7 , . ' 7- * . -77. v :7 ' -7 V ' v- ' N' -7 7'%7" ; 7. ; -77. THE GLIDDEN COMPANY AND SUBS I. -7. v7: 7'..'7 v 7 7'.' Year ended August 31* 19 ! : -;v- : ....>777. * ;-7 * 77'7 7,' 7T- v-- 'v ; ? col-, a 7"v'.--.. n '7- '-`77-`:. COL. B ITEk CHARGED DIRECTLY TO PROFIT AND LOSS 7: ; To Cost of Goods Sold or . Operating Expenses 7f|77772>j7 77iiiii'0'*CT7 Maintenance and repairs Depreciation and amortization Taxes: _ . Payroll Real and personal property andj, miscellaneous : .. 1 ** * * | ' Management and service contract fees- Rents ' i* Royalties $2,626,644 2,870,339 $ pi,if9 712^468 $1,043,947 * -0-- 83,909 ,130,893 I $ 129,92 -0 $ 240,97 312,73 - $ 553,70 *. J. -o 608,23 I ' ' i- - I <f c - , 7. ss^*iwagssps!|i waiiwiiii wmmmssm ' te. ' V' . EDULE XVI--SUPPLEMENTARY PROFIT AND LOSS INFORMATION THE GLIDDEN COMPANY AND SUBSIDIARY : . . - Year ended August 31, 1956 . . ' / : v COI CHARGED DIRECTLY TO PROFIT AND LOSS I To CUo)st of Goods Sciid or Operating Expenses (2) Other $2,626s644 2,870,339 $ p 1,4>9 712/468 .,043,947 -O'": 83,909 ,130,893 V. $ 129,926 -o- $ 240,973 312.735 553,708 -o608,239 -o- COL. C CHARGED TO OTHER ACCOUNTS <D Account (2) $ 1 Amount -o-o- -o- -o- > --0" -0-o-o- COL. D Total $2,756,570 ' *n 2,870,339 i(S $ 572,452 1.025,203'