Document Xz3pGYoBE49ReVMwxQ0OND8dd

Net sales_________________ _ 100.00 Cost of sales-------------------------------------- 52.95 56.80 54.18 Selling, general Sc other expenses___ 27.33 27.98 24.61 Operating profit 19.73 15.22 21.21 Other income 0.28 0.31 0.67 Total income 20.01 15.53 21.88 Income deductions _________________ 0.54 0.64 0.45 Balance 19.47 14.89 21.43 Income taxes Sc surtax______________ 10.14 7.40 10.84 Tax adjustment--prior years 0.24 Net income to surplus______________ _ 9.09 7.49 10.59 O]Dividends disbursed during fiscal year, Sfi)Price ranges for calendar years ended three months after fiscal years. UPaid, after 2-for-l split in Oct., 1955 and prior to 5% in stock Sept. 28, 1956, Depreciation includes amount charged to expense in lieu of depreciation. Includes $1.59 paid prior to 2-for-l split. 100.00 57.59 21.61 20.80 0.34 21.14 0.46 20.68 10.61 10.07 100.00 60.44 21.78 17.78 0.14 17.92 0.47 17.46 8.92 8.53 60.14 23.06 16.00 0.30 17.10 0.61 16.40 8.45 8.04 Also 2% in stock. Includes $1.50 paid prior to 5% stock Sept. 27, 1955. DUAfter 2-for-l split; before, 78-4814. bcr$aaa28cd1ad1pLdteo7309o,arbnaanafOrTPC4a,6s0(t((-inp8ldttdtte3v1N27e%teeNenerao9soriE,))a)orts5dddoicrb1oGgacfc$-mt,h$9h1vPA$aol0$e$Stl1eAiJc76N91e.d01l15fdale5a8foe6u,0,yTpd,a02ot1p3,3i3idnpnaL0efavld,7,t.r2Ev,0u0lyscn0etsnont.a5ir0.0.10don0eRioo,ddadp,,nn9002-10e02dot13:ln60,M,re0cti0AeN'nA,0de-2nfb0is0s0l11ofa,,td.apd:ae1uae,o99o,lc4ris93tolr51gt-53wDtnreahp!4-1.$O93d2a-%4t.-cadn84aE25c-ol;Hen1%c-l:u%1Y0rc3(A%yu.-s,Bpbseeiao0,,,-tesap5ours-pta,1amTm1-bs0,rn%barptn9gr-lofyr9en0aeua-ikool6pnylo.Sp6ta-ne0ounenl7;stas5etarilbee.tesddLtnte,1tbAdeebnralesps,ieti$aila,nesJacu,aetcef,$s2.scedsefgu1gdt'1$2uddotf-hdes9d,$,o13.o5.lcu5rurdeyu5dI240,icpelo0n0A1ttee7u,l01eMSskio0l,0,-n3so,0tuep60,.0oe1w1,0d71u1sAns3N00a9r,p09N97S.Art0,0s.a5nrp06roa5tw%10ee9.:ouu9l7ereivn91,anp.v-.-cpg,.5taa5c6w3stc.aA$tr.4.3c9eni0i11o1h1ntoo)1,.h,n19,nl;33v,c,rln,6Coi0,lukipoA8ne11115sd,1taoai5999m9a-aco;9pe.6n366615sloy6slll6r3e73,d99o.dd:y6-t.;,.;;,57.1cA4AnsSs2f1dscs5cCr995,eho0hheoteeuoU12P2aA180CtsaAmaa5bpsg3m0.,Tsna4rr0no__ttptP.smee..,d0HT_ag_ro1mahs;0ISi11n6ehroOfnTa;r11ecp0$oedaengrn,,Arh1Raepn:eDea1apn10fLsB1tuIpdss9r.3p9nteZtya,f;hno57eal--2DficgauaE3lr9n5a0m-Srdemrp.er0n-.cvircDt-vaeTe.dalsk-aeoo(e5(2i-s--rs(hO4drCd-1$ym08$st-:&af$19te11,-2-sC3arhn$1-e5rff1c95no,9oeo1l--09crtKi26oe1esd.opmDes2a0,4r59ropntn-0_sa%2lfnpenatadlles,R_t6es.0recsoarg$-ampb:0reookJ1ryrvr0la(csepb0eialfce2itSsohY0cedlroendos2c0%iar2eamsaen.r..hdoyMpr55psr)-tate-ae3noe0;e0fhsaftfroa(s.1roeonswdsreif,)d"rn3bno)rtrrsi.s-n0io-t1nuylv;lilto,e$91md1ogfioO5d1a9)9t2oacsb59p22$eccctuk-,5a2$5e2t.ntftwuit3._2--5us.soo.dspd_.5rhpie.rtnr1lsrs.aipaf.a-lr7en,)p.uulen.n,ra;in.gnnaes.ds,r1.4tdo.a2ri9p,$.8eCfnna9..5enouo0.16tl6xgs.5oiiodnd0t.,,8rt;l--.,- iBank Credit: Agreement provides for max 1026__ 2.00 imum borrowings until Feb. 1, 1960 of $3,000,- (no par shares) 000, evidenced by 5-year notes, with interest 1927__ 0.80 at 14% above prime rate but not less than 3% 1930__ 1.20 1928-- 0.95 1931-36 nil 1929__ 1.50 1937... L75 nor more than 4% and repayable in multiples 1938__ 0.50 1939__ 1.00 1940__ 1.35 1948-- 8.00 0)1952-54 2.00 1948.. 2j S0 . 1950-81 (On $1 par shares) 0)1955- 1.50 (On $1 par shares after 2-for-l stock split) 4* 1955 0.25 0)1856-- 1.25 0)1957--.- 1M- 1958-- 1.70 1959 1.00 I ' \T-.' 1lu5(.9O..._n._..5.0..0.c.6e..0n..t..s.hares'after 2-for-l split) ...... CDAlso stock dividends: 1920, 312%%v 1953, and 1954, 3%; 1955 to 1957,5<X Dividends payable quarterly j_______ to stock of record about Mhr. DabIVovIDe.END RESTBICTIONS^-Sve;e ' _* VOTING RIGHTS--One vote per share.' PREEMPTIVE RIGHTS--NonA^ 'uuuTM- LISTED--New York Stock Exchange;'1 ^fSTMorgENT_MOrgaa 6ua^ RDEIVGTIOSETNRDARS--PBAaYnIkNeGrs TArGuEstNCTo.-, Nb6wUrY|SiaSjtd'<13 Trust Co., Baltimore, Md. , , ,, j, OFFERED--38,376 shares of common-fnb'par) - at $19 per share in November, 1935 by Lehman BYroorsk..,' STthonise o&ffWereinbgstedridanndbBtlo^drgmet,mInFc..^Nue4w -;| pany financing. * Stock Options options held b; of $50,000. Proceeds to be used for addition to 1941__ 1.80 1942-43 1.60 1944__ 2.00 ees on 43424 Hampstead, Md., plant. 1945__ 1.60 1946__ 2.30 1947-- 2.50 $25.3125 per share. CAPITAL STRUCTURE LONG TERM DEBT Issue 1. Debenture 4%s, 1983 ________ CAPITAL STOCK Issue 1. Common__________________________ THE 6LIDDEN COMPANY Rating A Amount Outstanding $30,000,000 Times Charges Earned 1959 1958 12.89 8.91 Interest Dates M&N 1 Par Value $10 Amount Outstanding 2,307,850 shs. Earned per Sh. 1959 1958 $3.31 $2.64 Divs. per Sh. 1959 1958 $2.00 $2.00 CaR Price m~ Call Price -- Price Range - 1959 1932-59 104%-97% Sllp4%-97%f ' Price Range 1959 1932-59 9 50`4-41% HJ50(4-17% [TjSee text. U)Range since issuance. EIRange since 2-for-l split in 1947; range from 1932 and to the split in 1947, 56(4-3(4. HISTORY Incorporated in Ohio, Dec. 11,1917 to acquire the business and assets of Glidden Varnish Co. of Cleveland, founded In 1875, and its sub sidiary, The Glidden Co., Ltd., Toronto. On Dec. 30. 1919 was reorganized and ac quired the following paint and varnish manu- essing Corp., processors of crude gums at Jacksonville, Fla. (disposed of in 1957) In 1950, company acquired entire common stock of E. W. Colledge G. S. A. Inc. of Jacksonville, Fla. (dissolved in 1957). In 1954. company acquired assets of Mound City Paint & Color Co., St. Louis. In Apr., 1955, acquired Zapon Industrial mainly of bulk shortenings, hard butters, specialty edible oil products, spices; pigments and metal powders; naval stores, terpene ; chemicals, tall oil products and resins. Sub sidiaries engaged in production of paints, var- . nishes, lacquers, enamels. '' Business of company and subsidiaries as . now constituted comprises four principal' Company, location, founded. Adams & Elting Co., Chicago, 1892. American Paint Works, New Orleans, 1900. T. L. Blood & Co., St. Paul. 1897. Campbell Paint & Varnish Co., St. Louis, 1879. Forest City Paint Sc Varnish Co., Cleveland, 1864. Heath & Milligan Mfg. Co., Chicago, 1851. Heath & Milligan Mfg. Co. of California, San Francisco, 1899. Nubian. Paint Sc Varnish Co., Chicago, 1879. Twin City Varnish Co., Minneapolis, 1900. A. Wilhelm Co., Reading, Pa.. 1857. In 1920 formed Glidden Food Products Co. a wholly-owned subsidiary to refine vegetable oils, manufacture oleomargarine, etc. In 1921 formed Chemical & Pigment Co., Inc. a wholly-owned subsidiary to manufac ture lithopone (now operated as a division). On Jan. 1, 1936 acquired all the assets of seventeen wholly owned subsidiaries, includ ing all ten paint companies acquired in 1919, Durkee Famous Foods, Inc., The Chemical & Pigment Co., Die., The Diamond Paint Co., Euston Lead Co., The Glidden Co. of Oregon, Metals Refining Co. and the Mamolith Carbon Paint Co., Inc. On May 9, 1936 acquired the paint and varnish buissilnress and' pa'in't and' varni's*h i'nven tories and some movable equipment of modest value of Certain-teed Products. Corp. and on Oct. 7. 1938, the paint and varnish Inventories and business of the Billings-Chapin Co. of Finishes Division of Atlas Powder Co. In 1955, organized Glidden International C. A., wholly-owned subsidiary in Venezuela, to handle licensing, manufacture, and distri bution of Glidden products in foreign mar kets. In June, 1958, acquired domestic paint busi ness of General Paint Corp., including plants at Tulsa, Okla. and Portland, Ore. and 21 branches for $850,000. On Sept. 1, 1958. sold soybean processing and grain merchandising business to Central Soya Co., Inc. for $3,760,000. Production facil ities and grain elevators at Chicago, India napolis, Lockport and Seneca, 111., have been leased to Central Soya for three years with option to purchase at Aug. 31, 1961 for $8,550,000. In 1958 acquired R. C. Pauli & Sons, San Francisco, a bulk spice processor. In 1959, Glidden Co. Ltd. (subsidiary) ac quired Douglas Paint Co., Ltd., Vancouver and Mowat-Grant, Ltd., Victoria, Can. SUBSIDIARIES Functions primarily as an operating com pany. As of Aug. 31 1959, owned 100% of the voting control of the following: Name, place of Incorporation and business: Glidden. International, C. A.- Venezuela. The Glidden Co., Ltd., Ont., Manufactures paints, varnishes, etc. Durkee Famous Foods, Inc., HL, Inactive. classifications or subdivisions: Paint,. Food, ' Chemicals - Pigments - Metals and Organic Chemical. As of Aug. 31, 1959. net sales of various divisions comprised; Paint, 45% (1958, 36%); Food, 40% (1958, 39%); Chemicals-pigmentsMetals, 10% (1958, 6%); Chemurgy, (1958; 15%); Organic Chemical, 5% (1958, 4%). PRINCIPAL PLANTS A PROPERTIES Paint Division: Company owns and operates twelve plants in U. S. which are engaged in manufacture of consumer and industrial paints, varnishes, enamels, lacquers, waterthinned paints and protective coatings. Plants. ; located in Atlanta, Chicago (2), Cleveland, Reading. St. Louis, New Orleans, Minneapolis, ` Ins Angeles, San Francisco, Tulsa and Port land, Ore., Glidden Co., Ltd. (wholly-owned, subsidiary) owns and operates plants at Toronto and Montreal. Also operates 159 branch warehouses throughout United States and Canada for distribution of consumer products. Food Division: Edible oil refineries located at Chicago, Louisville, Berkeley, Cal. pro duce hydrogenated shortenings, bulk refined oils and specialty edible oil products,. Beth la-enhde- mc-,-o-c-P-o-a-n-.-u-p-t,la--Bnet Trpkkreeol'deuycep-slasnp tic-ae--sl-s-,.os.eparsood-nuicnegss- i margarine and salad products. Bakers' prod ucts produced at a second Chicagoplant. Chemical Division: At CoUinsville, HI., pro Cleveland, O. AFFILIATES On Aug. 31. 1940. organized (in Ohio) Nelio Resin Processing Corp. and transferred to it the assets and business of the former Neli raecsqiunirdeidv- isai"lol nasosfe.tGs liO-ddc.te. n--31c.om19p46a.nyN.eC.l.ioomRpeasniny Processing Carp, was dissolved and now op Fabrica Nacional de Finturas, S.A., Cuba Ishihara Sangyo KaiBha, Ltd.. Japan Pinturas Ico Ltda., Colombia (33(4% owned) Pintec, Ecuador (33(4% owned). BUSINESS A PRODUOT8 duces lithopone; Baltimore, Md.; titanium dioxide and cadmium pigments; Hammand, Ind., metal powders; Jacksonville, Fla., resin, terpene chemicals and other naval stores products; Port St. Joe, Fla., tall oil products. In 1959, acquired from American Metal Cli max, Inc., a large deposit of high grade ilme- erated as a division of company. Company is engaged principally In produc nite ore in Ocean County, N. J. Company- In 1949, acquired 80% (subsequently re- tion of paints, varnishes, lacquers, enamels plans to build concentrating and separating MOODY'S INDUSTRIAL MANUAL 635 Capital Expenditures: In 1959 totaled $7,607,000, over 50% of which was for titanium dioxide facilities. Capital expenditures in 1960 are expected to reach $10,000,000. G. S. Warner, Vice-President W. D. Stallcup, Vice-President W. von Fischer, Viee-Pres., Research J. W. Pollard, Jr., Vice-Pres., Eng. R D. Horner, Sec. & Gen. Counsel R. D. Homer. Cleveland W. G. Phillips, Cleveland W. C. Lighter, Cleveland G. M. Halsey, Baltimore W. D. Stallcup, Jacksonville, Fla. MANAGEMENT Officers: ... Dwight P. Joyce, Chmn. & President W. C. Lighter, Executive Vice-Pres. A. D. Duncan, Vice-President H. L. Slaughter, Vice-President B. W. Maxey, Vice-President, Finance J. H. Weeks, Vice-President, Personnel INCOME ^OUNTs'^COMPARATIVE W. G. Phillips, Treasurer D. E. Erskine, Controller R. K. Dutton, Asst. Secretary Directors: Dwight P. Joyce, Cleveland H. L. Slaughter. Cleveland John H. Weeks, Cleveland A. D. Duncan, Cleveland CONSBO. LWID. AMTaExDe"y,INCCleOvMelEandACCOUNT FOR G. S. Warner, Cleveland. W. P. Smith, Washington General Counsel: R. D. Horner. Auditors: Ernst & Ernst. Annual Meeting: Second Thursday in Dec. No. of Stockholders: Aug. 31. 1959, 20.993. No. of Employees: Aug. 31, 1959, 6,022. Executive Office: 900 Union Commerce Bldg., Cleveland 14, O. STATED PERIODS INCOME AGOOUNTS ujjaraiuii ^ r,pnt.t, to Securities and Exchange Commission) ' (Excluding California mining companies) Year to Aug. 31,'59 Year to Aug. 31/58 Year to Aug. 31/57 Year to Aug. >1/56 Sales, less returns, discts. & allow.-- QlCost of sales----------- .-------------------- -- HQSelling, general Sc adm. expenses-- $195,764,389 142,534,797 36,803,888 $217,352,681 168,979,340 34,148,467 $225,537,291 177,151,928 33,168,829 177,764,374 31,947,320 Prov. lor doubtful accounts less rec-- Operating profit--------------- -------EJOther income -------------------------------- 16,425,704 839,745 14,224,874 902,452 15416.534 1,448,679 16,578,693 673,148 Total___ ---___________ Interest on long term debt--Bother income deductions- 17,265,449 1,339,918 15,127,326 1,562,025 1,215,239 16,665,213 1,277,776 17451,841 801,104 lOmos.to Aug. 31,55 $180,524,822 142,243,394 24,144,648 Not stated 14,136,780 480,287 14,617,067 292,500 Year to Oct. 31/54 $209,083,579 168,032,940 27,303,224 210,312 13,537,103 1,078,858 14,615,961 380,918 Year to Oct. 81/53 $211,758,522 170,492,456 26,636,577 102,430 14,527,059 664,985 15,192,044 357,772 - ^ Balance --------_____ ________ Provision for Federal taxes--------------Dominion & state Income taxes------- 15,925,531 7,696,000 596,000 12,350,062 5,818,000 469,000 15,387,437 7,620,000 503,000 16,450,737 7434,000 470,000 14,324,567 6,865,000 347,000 14,235,043 6,734,000 408,000 14,834,272 7,150,000 575,000 Net Income to surplus----------------Earned surplus beginning of year----- 7,633,531 54,460,366 6,068,062 52,993,644 7,264,437 50,323,547 8,146,737 46,768,245 7,112,567 44,244,266 7,093,043 41,733,083 7,109,272 29,202,349 Preferred dividends----------------------- -- Common dividends---------------------------- 4,609,795 4,596440 4,594,340 4,591,435 4,588,588 4,581,860 4,518,538 Earned surplus end of year___ -- $57,484,102 $54,460,366 $52,993,644 $50,323,547 $46,768,245 $44,244466 $41,733,083 SUPPLEMENTARY P. Sc L. DATA Maintenance & repairs-----------------Depreciation Sc depletion------------fflTaxes other than income--------- $3,085490 6,579,313 1,757,647 1,300,897 $3,262,923 5,838,032 1,944,432 1,120,468 $3,371,291 5,046,378 1,843,283 871,550 $2,756470 2,870,339 1497,655 692,148 $2,251,347 2,234,960 1,319,006 447,452 $2401,057 2432,685 1,408,960 556,458 $2,311,790 2,185,184 1,422,050 541,908 . Royalties------------------------- 140,485 158,586 182,034 130493 130,171 132,639 114,186 BBlncludes related portions of items shown under "Supplementary p. & 1. data" below statement. 1958: Abandonment of St. Helena plant. 1959: Includes $2,175,000 rental income from Chemurgy properties, after $2,100,056 de preciation. Blncludes payroll taxes: (1959, $732,062). General Notes (a) Inter-company sales have been elimi Record of Earnings, years ended Oct. 31 (in $): .......... Cost and Operating Year Net Sales 1*41_______ 68,901,706 1942 81.705,732 __ _ _ IMS._____ 97.144,617 1944 111,897,815 iSsi:.TM:: m,615,433 1946 122.439.119 1*47 165,753,246 1948.;_--. 202,318,794 1949____i_ 160,143,276 1959--- 188,607,966 1951--'__ ;__ 228,522,503 1952--______ 205,113,304 1953---.......... 211,758,522 Ex_4p.e7n22s.e92s7 77,367,361 90,545,686 106,085.525 104,618,321 112.208.590 183,450,770 187,265,191 150,005994 174,259,593 212,614,664 191,128,106 287,231,463 4P,1r7o8f,i7t79 4,338.371 6,5*8,931 5.812.290 6,998,117 10.230.529 22,302,476 15,053,603 10,137,282 14,348,373 15,907,839 13,985,198 14,527,059 Oth. Inc. & Ded. (Net) d 13,389 d 192,618 d 2,127,732 d 1.410.001 d 248,479 199.936 228,508 389916 11,641 89,287 93,029 218,607 307,213 Inc. Bef. Taxes 4,165,390 4,145,753 4,471,199 4,402.289 6,749,644 10.430.515 22,530,984 15,442,819 10,148,923 14,437,660 16,000,868 14,203,805 14,834,272 Income Taxes 1.155.000 2.292.000 4.473.000 2.285.000 4.402.000 4,715,500 8.773.000 6.166.000 3.957.000 5.876.000 7.687.000 7.255.000 7.725.000 nated. (b) In 1955. fiscal year changed to Aug. 31. (c) Principles of consolidation (see note (a) under balance sheet). Net Income 3,010990 1,853,753 1,998,199 2.117.289 2,347,644 5,715.015 13,757,984 9,276,819 6,191,923 8,561,660 8,313.868 6,948,805 7,109,272 Common Dividends 1,143,788 1,977,206 743,979 742.899 1,043,980 1,781,920 1,938,950 3,336,675 0)3,680,637 3,910,279 4,512,127 5,134,246 4,578,538 Com. Shs. Earn. Per Outstand. Com. Sh. 830,543 3.08 827,243 1.90 825.443 1.88 825.443 2.02 892,000 2.13 887.700 5.93 1,757,800 7.57 1,752,717 5.04 1,780,536 3.23 1,971,623 4.11 2,280.238 3.65 2,284,739 3.04 2,290,794 3.10 Blncludes $841,787 representing 2% paid in stock. BALANCE COMPARATIVE CONSOLIDATED BALANCE SHEET, AS OF i from reports to Securities and Exchange Commission: excluding California mining companies) ASSETS (huh _______________________________ Aug. 31/59 $8,868,172 Aug. 31/58 $9,295,760 Aug. 31/57 $9,581,466 Aug. 31/56 $5,512,638 Aug. 31/55 $13,233,718 Ocelt.31/54 $16,061,456 Short-term securities (cost)-------------- BNotes & accounts receivable----------- ngInventories ,, ,, ............. ......., S]Inventories of Chemurgy Div.------ Other current receivables--------;----- 7,957,140 16,904,805 39,588,415 f,094'742 20475,792 36,771,649 3,756,249 1,900,305 18'34,022 42,125,263 5,262,342 4,022,319 18,244,642 >8,492,240 1,593,612 17,080,926 33,701,460 15,914,940 32,454.157 7042,268 Prepaid insurance, expenses.------------ 708,912 Oct. 31/53 $8,230,545 17,511,525 33,307,058 87380,815 Tetal current assets___ _________ Cash surrender value of life insurance 'Recefvablei Sc other assets----------------- , plant & equipment-------BDeprec. & depletion res.___ - $75,122,186 1423,549 96,799,892 35,893,175 $72,508495 739,536 89,963,169 29.971.238 $79,334,412 720,023 89,176,622 29,659,661 $63,843,132 617,923 19440,016 26.426484 $65,405,090 710,092 64,421,382 24,427,903 $66,472,821 741.881 57,207,100 22.713454 $67,429,973 840,678 404,433 55.527,573 22,293,330 ;Ne$:property account--.---------------insurance, expenses, etc-------- 60,906,717 59,991,931 59,516,961 798,459 53,413,732 863,216 39,993,479 652,563 34,493,146 961,907 33434,243 840,270 $137452,452 $133,240,062 $140469,855 $118,738403 $106,762,124 $102,669,755 $102,749497 Notes payable----..Dividend payable Accounts payable. Accrued taxes, ins., etc.. Fed., Dom. Sc State income taxes-- $1,153,925 7,676,924 1449,489 6,493,507 $5,500,000 1,149,085 6,467,609 1,439,805 5479,725 $9,000400 1,149,085 8,002,714 1,639,224 7,241,716 $11,000,000 L147.995 6,824.354 1,429,106 7,745,839 $1400,000 1447,675 6446,925 1,307475 7,946432 $1,500,000 5,480,190 1,134442 7,132,415 $5,500,000 6,358482 1,692,162 7,874,832 Tetal current liabilities___ Long teem debt-------------------|Common stock__-- gCapital surplus________ l capital sto^aTsurplus------------ stTreasury stock (cost). $16,873,845 30,000,000 23,078400 10,116,005 57,484,102 90,678,607 $19,936,224 26,000,000 22,981,700 9,861,772 54,460,366 87,303,838 $27,032,739 27400,000 22.981.700 9,861,772 52,993,644 85437,116 $28,147484 7400,000 22,959.900 9,807472 50,323,547 83,090,719 $18449,107 9,000,000 22,953400 9,791,272 46,768,245 79,513,017 $15,247,147 10,500,000 5,733438 26,944,704 44,244466 76422,608 $21,425,276 7,000,000 5,728425 26475,642 41,733,083 74437,050 12,729 ,..vcrt capital stock Sc aurph $90,678,607 $87,303,838 $85,837,116 $83,090,719 $79,513,017 $76,922,608 $74,324421 ______ Net current assets-.-----------------PROPERTY ACCT.--ANALYSIS Additions at cost----------------. Retirements or sales DKPRXC. RESERVE--ANALYSIS Additions Charged to income____ _ .ggHrementi^rmiewals cbgd. to res. Stlierreductions --I------'--I-- REVAL. RESERVE--ANALYSIS Reductions. $137,552,452 $58,248,341 $7,607,001 818,907 $6,579,313 693,512 40,893 4,757 $133,240,062 $52472471 9,214.395 8,427,848 (6,524.801 6,213,224 $140469455 $52,301,673 $12,452,811 3,116,205 $5,046,379 1,800,397 12,604 $118,738,003 $35,695,848 $16,630,003 14U469 $470,339 871,958 $106,762,124 $47,155,983 $8,155,750 941,468 $2,234,960 521,011 107496 107496 $102,669,755 $51425,674 $4,020,936 4441,409 $2,332,685 X,912,854 793 $102,749,597 $46,004,697 $4,149,573 1445.684 $2,185,184 1.421.684 After reserves (1959, $511,868). I certain edible oils, and other commodities | 1959: Raw materials and work in process, JB~lMced at l`ower o*f average) or replacement c--os*t (a-c--c--u--m-- ulated j s-t-a--te--d----a--t---c-ost (. h-a--t---i-n--, firs--t---o- ut .method) market except for I in excess of replacement market. not [ 19,212,522; I $39,588,415. finished goods, $20,375,893; total. 636 MOODY'S INDUSTRIAL MANUAL aAt amount realized from sale thereof on Book Value Reserve principal assets classifications, de Sept 1, 1958; 1957, at lower of cost or market. Constr. in process. 1,4831531 rates are predicated, in ger "* IllPrincipal "capital surplus" changes fol Abandon, allow.-- low: Chemurgy props . 22,504,942 686.769 life of 20 to 25 years for 10.874.767 equipment and of 40 years 1 1955: After debiting $17,203,725 transferred pfsrain-Btarage facilities ph__________ to capital stock account resulting from Total ............... $96,799,892 $35,893,175 1954 Is being amortized over 5-yeaf-' change of common shares from no par to $10 ^Represented by: 1959, 2,307,850; 1958-57, Rates have been applied by strata par. 1111959- Ore, Id. & lease.. 2,298,170; 1956. 2,295,990; 1955, 2,295,350 $10 par method to properties acquired priortn- Book Value Reserves shares; 1954 and prior years by no par shares: 1854, and to grain storage facilities ; $229,535 $177,329 1954, 2,293,455; 1963. 2,291,330, Includes treasury after that date, and by sum-qf-yeanj Land Land Improve.___ R.R. sidings Buildings Mach. & equip. -- Furs. & fixtures_ 2,936,587 1,022,953 243,937 23,163,987 41,278,713 3,665,730 shares (see note B2 below). method to other properties acquired^ 438.298 HCommon shares; 1953, 536. after that date. , > ZT 56,513 Depreciation Policy: Depreciation is pro , , . General Notes 7,624,919 14.092,395 vided by amounts considered by company as fair and reasonable to amortize cost of depre (a) Glidden Co., LtfL, included to t dated statements. < , 1.780,589 ciable properties over estimated useful life, (b) Equity of company In net Ml Auto equip. 269,977 161.596 on basis of anticipated wear, tear, obsoles subsidiaries at Aug. 31, 1959, exceeded parent cence, and deterioration of properties. As to company's investment by $5,072,840. FINANCIAL * OPERATING DATA Statistical Record, Fiscal Years Earned per share--common-------------Dividends per share--common---------- Deb. 4%S, 1983 -------------------------------ElPrice range--common-------------------Net tangible assets per sh.--common Year to Aug. 31,'58 $2.64 $2.00 H]103%-102% 47-28 $37.99 S7%-29% $37.35 Year to AUg.3JjH 2D0 10 mos. to Aug. 31,'55 $340 $140 44)06% $34.64 Year to Oct 31, " ` DO Year' Oct. Times charges earned: Before income taxes---------------------After iticnme taxes____ .______ ____ Net tang, assets per 51,000 ig. tm. debt Net curr. assets per $1,000 lg. tm. debt Number of shares--common 8.91 4.88 $4,358 $2,022 2,298,170 13.04 6.69 $4,121 $1,902 2,298.170 Z1M 11.17 $12,079 ss* 49.97 25.32 $9,835 $5,240 2,295,350 38.37 19.62 IT,328 4,879 *,455 42.48 19.87 $14,879 Financial and Operating Ratios Curr. assets -4- curr. liab.------------------% cash Sc sec. to curr. assets---------------% inventory to curr. assets----------------% net curr. assets to net worth % property depreciated-- % annual depr. to gross property.-- 4.45 22.40 52.70 64.24 S7.08 6.80 3.64 12.82 55.89 60.22 33.32 6.49 2.93 12.08 59.73 60.93 33.26 5.66 M7 8.63 60.29 42.96 $3.10 MO 3.58 20.23 51.53 . 59.31 37.91 3.47 4.96 24.16 , . ,,646M.50*+;,, 4.08 JCapitalization: 'o long term debt i common stock 8c surp.v-------- 24.86 75.14 4.94 22.95 77.05 5.36 24.26 75,74 4.76 $.28 01.78 5.88 10.17 89.83 5.88 12.01 87.99 6.44 es -7- Inventory----------------- -------------- Sales -i- receivables__________________ % sales to net assets ,, ]_llnM--in--mi % nsaelet isnteobtmofetb total assets---------------- net income to net worth___________ Analysis of Operations Ne' ts--a--l-e--s.._____ Cost of sales--------------------------------------- Sell., gen. & other exp------------------------ Operating profit-------------------------------- Other income------------------- --------------- Total Income ......____ ......_________ Interest on long term debt etc.-------- Income deductions---------------------------- Net income before inc. taxes------------- Income taxes------------------------------------- Net Income ERange on N.Y.S.E. ^Calendar years, 11.58 321.42 142.32 5.55 8.42 % 100.00 72.81 18.80 8.39 0.43 8.82 0.69 8.13 4.23 3.90 g Disregarding 10.77 362.30 163.13 4.55 6.94 % 100.00 77.74 15.71 6.55 0.41 6.96 0.72 0.56 5.68 2.89 2.79 preferred 12.30 12.40 1057 878.93 423.65 451.39 160.67 190.58 169.09 5.18 6.86 6.66 8.46 9.80 8.95 10^00 % 100.00 % 100.00 78.55 78.56 78.79 14.70 14.18 13.38 6.75 7.32 7.83 0.64 0.30 0.27 7.39 7.62 8.10 0.57 0.14 . 046 0.21 6*82 7.27 .94 3.60 3.67 4.00 3.22 3.60 3.94 dividends due to conversion or redemption 13.12 044.28 203.65 6.91 942 % : 100.00 SOM 1AM 6.47 ' ' 0.52 6.99 . 0.18 ' -'~o!it 3.42 - 8.39 ' of entire Issue. 8.01 01.39 LONG TERM DEBT L Glidden Co. debenture 4%s, due 1983: less thereafter funded debt would not exceed VOTING RIGHTS--Has one vote per abate: 35% of net tangible assets. DIVIDEND RESTRICTIONS--Company may Cumulative voting permitted in election of directors. Rating--A not pay cash dividends on or acquire stock in PREEMPTIVE RIGHTS--None. AUTHORIZED -- $30,000,000; outstanding, excess of consolidated net income after Aug. LISTED--On New York Stock Exchange Un $36,000,000. 31, 1958, plus $10,000,000, net proceeds of stock listed trading on Boston, Midwest, Pacific DATED--Nov. 1, 1958. MATURITY--Nov. 1, 1983, INTEREST--M&N1 at office of trustee. TRUSTEE AND REGISTRAR--First National sold and debt converted into stock after that date not in excess of cost of stock acquired or unless thereafter consolidated funded debt would not exceed 35% of consolidated net Coast, Philadelphia and Baltimore Stock Ex changes. TRANSFER AGENT--Chemical Bank New York Trust Co., New York and Cleveland City Trust Co,, New York. __ DENOMINATi 6n --Coupon, $1,000; register- foneriVilo aoente RIGHTS ON DEFAULT--In event of default Trust Co., Cleveland. REGISTRAR--Chase Manhattan Bank.' New able as to principal; fully registered, $1,000 and multiples thereof. . CALLABLE--As a whole or in part at any time on 30 days' notice to Oct. 31, incl., as f19W60__ 10..3..%.... 1966__ 103 1972__ 102% 1977-- 101% 1962.- 103% 1968__ 102% 1974__ 102 1978... 101% 1964__ 103% 1970__ 102% 1976__ 101% 1979-- 101 19__8__0_._..__1_0__0_%_ 1983___100 However, no debentures may be redeemed prior to Nov. 1, 1963, from proceeds of borrow ing at interest cost to company of less than i 82% Also callable on like notice at 100 for sink ing fund (which see). SINKING FUND--Annually, cash (or deben tures) to retire on each Nov. 1, 1964-82, not less than $1,500,000 nor more than $3,000,000 debentures at par; payments to retire entire issue by maturity. LEASE-BACK RESTRICTION--Company or a restricted subsidiary is not permitted to trans amount equal to greater of proceeds received or fair value at time of sale, or (2) total rental payments during initial term of lease and any renewal shall be deemed to be consoli dated funded debt and shall also be Included in consolidated net tangible assets. SECURITY--Not secured. Company or any restricted subsidiary may not have any lien oh tangible assets unless debentures are equally and ratably secured; excepted are purchase money liens up to 66%% of lesser of cost or fair value and other permitted liens. CREATION OF ADDITIONAL DEBT--Com pany may not (1) create (except for refund ing) funded debt (other than the debentures); (2) permit any. restricted subsidiary to create certain secured funded debt; (3) permit any (30 day grace period for interest payment), trustee or 25% of debentures may declare principal due and payable. INDENTURE MODIFICATION -- Indenture may be modified, except as provided, with consent of 66%% of debentures. LISTED--On New York Stock Exchange. LEGAL--For savings banks in New Jersey. PURPOSE--Proceeds to reduce bank loans by $15,000,000; to retire $6,000,000 notes due 1959-62 and reimburse treasury for debt incurred in financing working capital. OFFERED--($30,000,000) at 99 (proceeds to company, 97%) on Oct. 29, 1958, by Blyth & Co., Inc., New York, and associates. CAPITAL STOCK 1. The Glidden Co. common; par $10: AUTHORIZED--3,000,000 shares; outstanding, Aug. 31, 1959, 2,307,850 shares; reserved for options, 183,480 shares; no par (no par shares split 2-for-l Oct. 24, 1947; changed from no par to $10 par Feb. 10, 1955, share for share). (In reorganization, on Dec. SO, 1919, 8 no par shares were issued for each share of $100 oar stock.) Dividend Record (in $) (Calendar Years) ($100 par shares) 1017-19 nil .. (no par shares before 2-for-l_spIit) 1921__ 0.50 nil 1926__ 2.00 1929__ 0)2.00 1933__ 0.25 1936__ 2.00 1940-- 1.00 1943-44 0.90 1927__ 1.00 1930__ 011.80 1934__ 0.90 ' 1937__ 2.60 1941-- 1.50 1945---- 1.20 1928__ 1931-32 1935-- 1938-39 1942__ 1946__ nil nil 1.60 0.50 0.80 2.00 1947-- 2.20 (no par shares after 2-for-l split) 1948___ L90 1949-- BB1.60 1950-- 2.10 1951-52 2.25 1953-54 2.00 1955-- 1.00 ($10 oar shares) 1955... 1.00 1956-59 2.00 (51960-- 0.50 York and Central National Bank, Cleveland. DIVIDEND DISBURSING AGENT--Compas OFFERED--87-920 shares at $36 per share Jan., 1920 by w. F. Ladd & Co., New Yen Hayden Miner Ac Co.. Cleveland. (63,148 shares) at $31 per share (proceeds to company $30 per share) on May 25, 1945 by a syndicate headed by Blyth St Co., Inc* New York. 25,000 shares (unsubscribed portUa^of TIt.- 535 shares offered to stockholders) at $28.75 per share (proceeds to company $27.75 per share) on Iter. 30, 1950 by Blyth & Co. Inc,, New York and associates. ISSUED--In reorganization dated Dee. 30,1919, 160,000 shares were issued in exchange for old $100 par stock on the basis of 8 new Chares for each old share; 52.000 shares were issued for part purchase price to acquire Nubian Paint & varnish Co. and 97.460 shares were sold to underwriters to provide cash for-part purchase price of constituent companies, and for working capital. At Itoe same time 15,000 shares of 7% cumulative preferred stock were issued for a like number of: shares of pre ferred; 24,849 preferred shares were iasuedas part payment for stocks Of acquired compa nies and 20,238 preferred shares were sold' to underwriters to provide cash for part pur chase price of constituent companies, and for working capital In 1920, 11,470 common shares were sold to employees. -' In May, 1925, 37,045 common shares-were sold for the company's account in the open market. In July, 1935 offered 46,000 common shares to- officers and key men at $22 per share. In May, 1945, sold 63,148 shares. Net proceeds were added to working capital, to be used for increased inventories and accounts re ceivable. Stock Options; Outstanding, Aug. 31, 1959, corporation to become a restricted subsidiary fflPlus 1% in stock. options held by certain officers, directors and if on consolidated basis ratio of funded debt (51Plus 2% stock Jan. 3, 1950. employees on 82,640 common shares at prices to net tangible assets would be increased un (3|To Jan. 5. from $35 to $41.50 per share.