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Cwmm. Stock, par value 43.O per share '
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She Glidden Cmpaay, Limited (1) Hastate Famous Foods, Xnc. (2) CSLiddsa International, C. A. (3)
Floes of
Stock of Clhsidiariei
Incorporation : ' ; Owned by Ro&lstraafe
Ohio Ontario Hlinoio Venezuela
All AU . AJUL /
\ ' Active subsidiary included la consolidated financial stotcssats.
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V' (a)
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" V . ,V.^ (3) Active subsidiary for which asperate etatcaents axe not filed.
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This eubeidicxy is not a "significant subsidiary" as defined
. ., . by Buie X-12B-2. :.'; .
- 9 inclusive
She registrant has' filed with the CoaaiBSion pursuant to Regulation X-lh and Buie XlhA3> definitive copies, of the prosy statement and annual report sndsnittcd to stockholders covering tto-'seas period, fes that of this
Ifcca lO. Fiaanciea Statements and Esfeiblts
The following financial statements ofLths registrant and sub-, oldieries contained in the annual report , of the registrant to its stockhdlSers for the^year ended August 31* 1$57 fumishsd to the Becurltioffi . end 'feadutag* CcttESiosion pursuant to the Ccesissioa's . Buie' X-lhA-3, - ere, incorporated: herein by reference i .
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tesct - mgaxb 31, 1$ST.
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isdivldQBl financial ststcaeBte of tilt
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Pareuant to thus requircsoeate of the securities Exchange Act
of 193bt the regletroot has duly caused this annual report to be
oa
THE GLUmt COUPAHY
W. P. Assistant
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DecasDber'30, 1957
c
ERNST a ERNST
FINANCIAL DATA . FOR
ANNUAL REPORT ON FORM 10-K
--
THE GLIDDEN COMPANY AND CANADIAN SUBSIDIARY
For the year ended August 31* 1957'
.
%
Consolidated financial statements have been incorporated herein by.reference, as set forth in response to Item 10 of this report.
herewith:
The following consolidated financial information is submitted
Accountants1 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
` ..
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 regula tion of the Securities and Exchange Commission are not required under .the re lated instructions or are inapplicable, and therefore havebeen omitted..
CLEVELAND
Shareholders and Board of Directors, The Glidden Company, Cleveland, Ohio.
We have examined the consolidated financial statements of The Glidden Company and its Canadian subsidiary for the-year ended August 31, 1957 and the notes to consolidated financial statements "and the schedules listed on the preceding page. Our examination was made in accordance with generally ac cepted auditing standards, and accordingly included such:tests; of the account ing records and such other auditing procedures as we considered necessary in the circumstances.
In our opinion, the consolidated balance sheet and statements of consolidated income'and earnings retained for use: in'the business' included in the annua 1 report of The Glidden Company, to; its shareholders for the year ~ ended August 31, 1957, present fairly the consolidated financial position of . the Company and its Canadian subsidiary at August 31, 1957, and the consolidated results of their operations for the 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 notes and : schedules submitted herewith, in compliance with the applicable accounting regulation of the Securities and Exchange Commission, present fairly the information required to be stated therein.
.V
..Cleveland, Ohio October 15, 1957
Certified Public Accdiintants
NOTES TO CONSOLIDATED FINANCIAL-STATEMENTS THE GLIDDEN COMPANY AND CANADIAN SUBSIDIARY
Year ended August'31, 1957
Note A - Principles of consolidation
The accounts of the Company and its Canadian subsidiary have been ' consolidated in the financial statements as in the preceding year. Upon .consolidation/ all inter-compariy accounts and transactions have been eliminated. Inter-company profit in the inventories is insignificant in amount and has not been eliminated. Accounts of the subsidiary have been stated in United States dollars on a dollar-for-dollar basis.
The equity of the Company in the net assets of the subsidiary at August 31, 1957, was $5,530,754 greater than the Company's investment-in the subsidiary, which difference has been included upon consolidation in earnings I:
^retained for use in the business.
,
The Company has one unconsolidated subsidiary, which is not significant
as to either assets or operations.
-"
Note*B - Inventories
'
... ' . .
'
Inventories at August 31, 1957, were classified as follows:
In-process and finished goods Raw materials Supplies
/.A TOTAL,'
$29,735,020* . 15,279,533 ! * 2,373,052.
$47,387,605*
-,
/
' Inventories, used in computing cost of products sold for the year
'^'amounted''to ,^8,492,240 and $47,387,605 at the beginning and end of the year,
respe.ctivelyr
.
...
-Note C - Depreciation and'related policies
The policy of the companies is to provide for depreciation by systematic charges to income in amounts considered to be fair and reasonable to amortize the cost of the depreciable properties over their estimated useful lives. Useful lives have been estimated on the basis of the.anticipated wear, tear, obsolescence, and, deterioration of the properties. As to principal asset classifications, depreciation rates are predicated, in general, on useful lives of 20 to25.years for machinerv^-and equipment and of 40 y6ars for buildings. Cost of-grain-storage facilities placed in service in 1956' and 1957*is being amortized over a period of five years. Rqtes hav^-been applied by the straight-line method to properties acquired prior to .January^1, 1954, and to grain storage facilities acquired after that date, and by the sum-of-the-years digits method to other properti-es acquired on or after that date. . *
Expenditures for maintenance and repairs are charged to income. Expenditures'.for betterments' and renewals are added to the property accounts.'
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Note C - Depreciation and related policies - continued
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 retire ments or disposals were not so contemplatedj the costs_of the assets and the related accumulations for depreciation are eliminated--from the accounts and. the resulting gains or losses are credited'or'charged :to income.
Note D - Retirement plans
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The companies maintain, and absorb all the costs of, employee-retire ment plans that provide benefits to eligible employees in proportion to the . employee's basic earnings during stipulated periodsof service arid subject to certain maximums. At August 31, 1957, the unfunded'liability, for.past-service cost under the plans was estimated to be $3,800,000 and the annual currentservice cost (which does not include funding of the past-service cost) was estimated to be $1,100,000.
Note E - Stock options
Options to pujechasd^hares of unissued Common Stock of the Company
were granted to certain officers and employees on June 24, 1952, December 27,v
1954, March 14, 1955, and November 30, 1956. Such options are exercisable at
any. time within ten years from date ,of grant. . Option prices were not less than"
'95% of the market price (mean between the highest and.lowest^selling prices on
the New York Stock Exchange) on the day the options were granted.
.
.
. During, the year, 2,180 shares of Common Stock were sold at $35 a share to holders of options granted June 24, 1952. The market prices at dates options were exercised ra'nged from $32 to $36,50 a share, and aggregated $77,960. The : option, price.of the shares sold aggregated $76,300..
>V ` ' As. of August..31, 1957, options were outstanding as follows:
DATS OF
i ':.'
GRANTS vv.::
June 24, 1952
'
Dec. 27, 1954
Mar. 14, 1955
Nov. 30, 1956 1
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.
OPTION PRICE
.$ -'35 38 38 37
.... NUMBER OF SHARES
23,525 37,1-65
400 28,300
89,390
'
..In addition to the outstanding options for 89,390 shares,.3,770 spares
of unissued Common -Stock were reserved^ at, August 31, 1957, for options that may
be granted. V-
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.
, There have been no charges of credits to income in connection with
pptionv transactions. ` 1 ,..y .'y./. 1
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SCHEDULE V--PROPERTY, PLANT, AND EQUi:
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'THE GLIDDEN COMPANY AND CANADIAN SUBSII
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Year ended August 31, 1957
' ;p...)P9L^a .^' V- ' V;'.
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'COL.. B '
.
: COL. C
CLASSIFICATION
; j, v. r
Balance at Beginning ,/ of Period
Additions at Coat
c;v:_
:>..
: ' :Ore lands and leases,
. ' v M l;." '!'
Other land
\
.$ 229,535' ' 2,894,920
. /Land improvements
: , .!-
. Railroad, sidings , f. ; /:". \ /
Buildings
_'
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Machinery and 'equipment
... t
- ..Furniture and fixtures. . J'
'i :
Automotive'equipment . `
( j i
Construction in progress
763,604 . 326,699
28,219,303 35,677,129
3,057,601
171,375= ' 1 8,499,850
{'
,
;
TOTALS
$79,840,016
$ -o60,788
173,067 120,505 3,929,541 7,284,666 499,811
54,170 330,263-A
$12,452,811
1
1 '
A - Represents net increase in the account after
reclassification of completed construction as
additions to other classifications of property. :
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\
vi--r e s e r v e s f o r d e p r e c i a t t o n , d e p l e t io n , a n d a mo r t iz a t io n
OF PROPERTY. PLANT. AND EQUIPMENT
IJIE GLIDDEN COMPANY- AND CANADIAN SUBSIDIARY
*?* - i
'
Year ended August 31, 1957
:o l . B
COL. C
COL. D
e at Beginning if Period
ADDITIONS
(i) ! Charged to Profit and ]
Loss or Income
(2)
Charged to Other Accounts'.--Describe
!
j. j
i 177,329 402,571 66,832
7,644,202 16,689,442
1,302,205 - 143,703
J26,426,284
,
$ -o65,697
| 35,817
j-1,801,397 1 2,833,925 . 284,253
25,289
I$5,046,378
1 "o- . -0-0-
, -0- .
. , -o- ' . "0 *" '
- --0-- V
$ -o-
DEDUCTIONS FROM RESERVES
. CO
Renewals, and Replacements
(2) jOther--
$ -o4,876 3,109
334,041 1,339,582
87,892 30.897.
$1,800,397
,,
$ -or -o-o-
-o-
12,604 -o-
-0-
$ 12,604
acement
COL. E
Balance at Close ;
of Period
1
i 177,329 463,392 99,540
9,111,558 18,171,181
1,498,566 138*095
$29,659,66i
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*
SCHEDULE V--PROPERTY, PLANT, AND EQUIPMENT
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: THE,GLIDDEN'COMPANY AND CANADIAN SUBSIDIARY '
Year ended August 31, 1957
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COL. B
Balance at Beginning of Period
TOTALS
$ 229,535 2,894,920 763,604 326,699
28,219,303 35,677,129
3,057,601 171,375=
18,499,850
$79,840,016
COL. C
Additions at Cost
$ -O60,788
173,067 120,505 3,929,541 7,284,666 499,811 ' 54,170 330,263-A $12,452,811
1 COL. D
1 : Retirements I - - or Bales
-1
' |$1"" *-o16,185 20,908
7,491 688,620
; 2,206,413 127,290
! 30,737
18,561
$3,116,205 '
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COL. E Other Changes-- Debit and/or Credit*--
Describe:
COL. F
Balance at Close of Period
$ -o-.0- - '
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TO-
$ 229,535 2,939,523 915,763 439,713
31,460,224 40,755,382
3,430,1^21 194,808'
8,811,552
$89,176,622 '
7
ERNST & ERNST
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SCHEDULE VI--RESERVES FOR DEPRECIATION, DEPLETION, AND A ! OF PROPERTY, PLANT, AND EQUIPMENT',
iTHE GLIDDEN COMPANY AND CANADIAN SUBSIDIARY
St- . ...... ii
-.
. .
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Year ended August 31, 1957
!
COL. A
DESCRIPTION
Ore lands and leases ..Land improvements .
Railroad sidings \ .;
Buildings
/ ,.,
-
Machinery .and elguipnfient
Furniture and fixtures .
Automotive equipment- - -
. -
COL. B
COL. C
Balance at Beginning of Period
ADDITIONS
- (1)
Charged to Profit and Loss or Income
(2)
Charged to Other Accounts--Describe
I TOTALS
$ 177,329 402,571 66,832 y
7,644,202 16,689,442
1,302,205
____1431202 _ $26,426,284
P ... ~o~ 65,697 35,817
1,801,397 2,833,925
284,253 ___ 35., 28,9...
1^5,046,378
-o-
-o-
-0-
-0-0-
-0-0-
-0-
The .amount shown in Column D.(2i is a replacement cost .charged to the-allowance account.
P
R-
R
^ES FOR DEPRECl A'kON.XJEPI.&TldN, AND AMORTIZATION PROPERTY, PLANT, AND EQUIPMENT
GLIDDEN COMPANY. AND CANADIAN' SUBSIDIARY Year ended August 31, 195V
COL. C
ADDITIONS
" (I).
! (2)
1
Charged to Profit and ! Charged to Other j
Loss or Income
Accounts--Describe j
$ -0-
65,697
35,817
1,801,397
2,833,925
1 284,253
... 1
25.289
1^5,046,378
$ -0-0 -0" -o-o-o-o-
$ -0-
COL. D
COL. E
DEDUCTIONS FROM RESERVES
<l>
Retirements,
.
> ; j
Renewals, and . |
Replacements
i.
(2)
Other--
Describe .
$ -o4,876
3,109 334,041 1,339,582
87,892 30.897.
f
$ . -o- , . v -o- .. .:
-o -o-
12,604 . . -o -0-
$1,800,397 . ' $ 12,604
Balance at Close of Period
$ 177,329 . 463,392 99,540 9,111,553
18,171 #81 1,498,566 . 138.095
$29,659,661
i:
ERNST & ERjtfST
COL. A
.- j
DESCRIPTION
. \
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.;
For doubtful accpunts, discounts, etc.
SCHEDULE XII--RESERVES THE GLIDDEN COMPANY AND CANADIAN SUBSIDIARY -
- Year ended August 31, 1957
COL. B
COL. C
t -.
ADDITIO:
Balance at Beginning of Period
Charged to Profit and . Loss or Income
A
'K,
;. , \
" .V
$ 477,131
$ 302,040
A -- Accounts charged off
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SCHEDULE XII--RESERVES NCOMPANY AND CANADIAN:SUBSIDIARY
ear ended August 31, 1957
COL, B
COL. C
COL. D
COL. E
Balance at Beginning of Period
ADDITIONS ,
(1) /A':%Y
. Charged to Profit and . Lo bs or Income
(2)
Charged to Other Accounts--Describe
Deductions from Reserves--Describe
'
sv
$ 477,131
.',Y,V:. $302,040
. '' , A'
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$ -o-
$ 273,550A
Balance at Close of Period
! ' I.
i;--,. v,,,.:'
'$505,621
ERNST & ERNST
SCHEDULE XVI--SUPPLEMENTARY PROFIT AND LOSS II THE GLIDDEN COMPANY AND CANADIAN SUBSIDIA) Year ended August'31, 3,957
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COL. t
A.
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COL. R
CHARGED DIRECTLY TO PROFIT AND LOSS
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(1)
-
To Cost of
Goods Sold or
Operating Expenses
(2) Other
. .Maintenance and repairs-..
. .. \
.-'Depreciation and amortization
Taxes:/
. . . -..
. /[ .
Payroll
`
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Real' and personal property and)
miscellaneous '
'
' Management , `and
service
contract |fees
Rents
. j"
Royalties
.
.. !
13,217,622 -o-
$ 35,85>
923,634'
.,276,487 Jo-
79,579 177,737
153,669' 5,046,378
252,375
314,421 :
566,796 -o-
791,971 4,297,
SUPPLEMENTARY PROFIT AND LOSS INFORMATION
5 GLIDDEN COMPANY AND CANADIAN SUBSIDIARY '
..
Year ended August* 31, 1,957
<
COL. B
CHARGED DIRECTLY TO PROFIT AND LOSS
i 0)
To Cost of Goods Sold or
Operating Expenses
<z)
Other
$3,217,622 , -Q-
$ 153,669 5,046,378
$ 3^2,85>
$ .252,375
923,634
314,421
$1,276,487 -o-
79,579 177,737.
",$ 566,796 -o-
791,971 4,297,
. A
, -)
COL. C
CHARGED TO OTHER ACCOUNTS
(1)
Account
(2) 1
Amount
!
COL. D
0
Total
-
'* 1 $
$
-o-o-
-0-
-o-
01 o1 o1 o1
1 I I1
$3,371,291 ; ^ 5,046,378 ^
.$ 605,228 -
1,238,055
$1,843,283 -0--
871,550' 182,934
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