Document qm6qKQrRRMaNVvJRKEGvoz7YK

N11788 AHSOkL REPOBT / ? r? fn ft Pursuant to Section 13 or 15(d) or the Securities Exchange Act of 193k For the Fiscal leex Gctober 31 195^ / W' -v SF- -Jp.. Tfi SLIDDEE CGK&&Y 1396 Union Ccasaarce Building, Cleveland, Ohio Title of Class CesEBon Stock, without par value t- Baas of each exchange ' on which registered .. * law York Stock Exchange- Item 2>. Sfuaber of Holders of iSqulty Securities . Title of Class Bumbetr of holders Common Stock, without par value 19,119 Item 3. Parents and Subsidiaries of Registrant Ko chengea since previous report. ... items V - 9; Inclusive : /} The registrant has filed with the Caamission, pursuant to Regulation and Ihile X-ll*A-3, definitive copies of the proxy statement and annual report sutedtted to stockholders covering the saoe period as that of this report. - Item 10. Financial Statements and Exhibits / The following fitiancikl: stataaesta cf the registrantand sub sidiaries contained in the simual report of the registrant to its stockholders for the year ended October 31, 193&, furnished to the Securities and Ebceh&nge Ctenaiaeion pvorsuant: to. the Co^snission'fl Rule' l-l^A-3, are incorporated herein by .reference;, ; s' . -* . .. .. ' v v ;' , ._Consolidated balance sheet - October 31 195k. tatsm.ent of consolidated Income- and earnings retained for use in the business - Year ended October 31, 195^ Botes to the financial 'Stateraentfl and certain financial schedules, as listed on page F-l hereinafter, arc.submitted in the following section of this report. !MividxuBl;'finacl8^ s^tewea^:afvi^ ..have been omitted herefrom, as permitted by the Inotanictioas, as the regis- .* trant is primarily an operating company and the. consolidated sub sidiaries are totally'held. .. . Pursuant .to the requirements of the Securities exchange Act . of_ 193^'r, -the registrant has duly caused this annual report to be signed", on its behalf by the undersigned thereunto duly authorised. t e 2 GLimsB c c s ipah y ; Febraafy 25,- 1955 FINANCIAL DATA ' ' FOR ANNUAL REPORT ON FORM 10-K THE GLIDDEN COMPANY Year ended October 31 ,"195^ Consolidated financial statements have been incorporated .herein by reference, as set forth in.response to . Item 10 of this- report,, . " The: following consolidated financial data is submitted herewith: Accountants11 report Notes to financial statements Schedule V Property, plant, and equipment- ,, Schedule VI - Reserves for depreciation, depletion, and amortization of property, planty and V equipment '-VV"I ^ ^Schedule XII - Reserves . 1Schedule XVI; - .Supplementary profit and loss information The following financial statements and schedules for which provision.is made in the applicable regulation of the Securities and Exchange Commission hav.e been, omitted for the-, reasons, given: . -* Schedules I, II, III, IX, XIII, and. XVII are not. required . : . under the related instructions. Schedules IV, VII, VIII, X, XI, XIV, and XV pertain to i;-/. ' subject matter which is not present in the financial' . statementso V I' ERNST a ERNST NOTES TO FINANCIAL* STATEMENTS THE. GBIDDEN COMPANY AND SUBSIDIABIES Year ended October 31, 1954. - Note A~- -Principles, of consolidation: . The accounts of the Company and its two subsidiaries have been consolidated in the-financial statements as in the pre ceding year. Upon consolidation, all inter-company accounts and . transactions have been eliminated. Inter-company profit in the inventories is insignificant in amount hnd has not been elimina.ted. .Accounts of the Canadian subsidiary /.have . been, consolidated. : at par.of exchange, . The equity of the Company in"the net assets of the subsidiaries at October 31, 195*+? was $4,550,863 greater than the Company's investment in the subsidiaries, which difference has ^ been included upon./consolidation in earnings retained for use ini'' the business. Note B -- Inventories:1 ,r . \ ' as follows: Inventories at December 31, 1954, were classified. Raw materials : Supplies In-process and finished goods TOTAL $13,*826,'570 . 1,187,611 17,4-39.976' $32,454,157 Inventories used In computing cost of goods'- sold ,'.f;6r^thei year" aisbunted to $33,307,058 and $32,454,157 at the be ginning-and'end of the,year, respectively. - Note C - Depreciation and related policies: The policy of the companies is to provide for .. depreciation by regular charges to income in amounts considered ; to be fair and .'reasonable "to amortize the cost of the depreciable .'properties over their estimated useful lives.,.; Useful vlivea*have-pf ' been estimated on the basis of the expected, wear,- tear, obsolescence arid deteriation .of the properties. ; In general,.-lives have been - ------- determined for specific asserts or groups of assets in many specific, locations, and,- therefore it is considered to be impracticable td set forth a. summary of them, or. o-f tlie depreciation rates. Rates 'have been applied by the straight-line- method ,to properties ac- ' quired prior to January 1, 1954, and by the sum-of-the-years digits method to properties/ acquired on or after that;date." vrVP; Adoption of' the new method for'.1954. additions had ho 'material affect, on-the 'financial . statements. . .-. ' -i'-Vi-ti ERNST a ERNST ^NiQJ-ESj;i$'0:f?lM!WCtAL--'S!i?ATEkE]^5-C6lCT'jjTUEbl '..nil'' *; ( - J^^tU/Kmeak 1 T&. ^ Note. C - Depreciation and related policies-continued: Expenditures for maintenance and repairs are charged to income' Expenditures for betterments and renewals are added to the-property accounts.' ^ '- ~ The costs of properties retired or s'old (less pro ceeds) 'are charged against amounts accumulated: for depreciation if such retirements or disposals were contemplated in the de termination of depreciation rates. If such retirements or dis posals were not so contemplated, 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. -- V'Note D -' Retirement .plans: 1 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 October 31, 195^, the unfunded liability for past-service . : cost under the plans was estimated to be $1,710,000 and the ' annual current-service cost (which does not include funding of V the past-service cost) was estimated to be $360,000. Note E - Stock options: /. ` - On June 24, 1952, the Company granted options to certain officers and employees to purchase unissued Common Stock of the Company^at $35 a share within ten years. The market.. .- price of the' shares at that date was $36.75r At October 31 i- 195^, .'options, were.-^.outstanding to purchase 30,125 shares. During: the' year" ended-Octte&er 31,. 195^ options for 2,125-* shares were exercised' at ' the "option 'prices aggregating $7*+,375. Market price ' o'f th'e'2,125 shares aggregated $o3,31+1+ at the date the options -were- exercised. There have been no charges: or. credits to income ' in connection with`option transactions". . In addition to the outstanding options for.30,12-5 shares,`67,750 shares, of unissued Common Stock were'reserved at ; October 31, 195*+ for options - that may -be granted.-: : . ; 1 -4 t r. it' ERNST & ERNST SCHEDULE 'V--PROPERTY, PLANT, AND EQU P iTHE.GLIDDEN COMPANY AND SUBSIDIAR- I- J : '' Year ended October 31 195^ COL. A S' CLASSIFICATION Ore lands and leases. 0 the if land Land j, improvements Rallpbad sidings Buildings Ma qh is re ry and e quipmeirt\ Furniture and-fixtures Automotive equipment Construction in\progress COL. B Balance at Beginning of Period COL. C Addition! at Cost Note - The additions for the year amounted to $4-,020,936'and the ret.. : to $2,3^+1?^09, neither of which amounts is more than .lO^spf: the closing hi; information for Columns B, IC, D,-'and E has therefore (been omitted." : . ..17.'...- /......... . 7 . ... . '*..................... I. ........ '................! I. I * .'H . C ERNST & ERNST is; SCHEDULED V--PROPERTY, PLANT, AND EQUIPMENT ; l * V < - : SI- . ; THE j^LIDDEN COMPANY AND SUBSIDIARIES . ^Year ended October 31? 1954 COL. B Balance at Beg inning of Period COL. C Additions at Cost COL. D i Retirements '-h -j or Sales' - , c o l !, e COL. F Other Changes-- 1 Balance at Close Debit and/or Credit*-- Describe V of Period '' t < . V- TOTAL t 229,535 2,307,429. 630,971*?; 200,666vSx 19,504,967 1 31,373,253. 2,133,104.. 231 352 ' 595*023 :* !?Zi?2Zil22 r amounted to $4,020,936' and the retirements and sales ts is more than. 10$ -^f. the closing balance. The E' has therefore (been omitted.' sasssiliKliP lUf 11888SHI **i `4^1tz.imA'i'" iHFiwiBroJitJiRtfOTaraswEnttfsimiBffltyBSJniiiEaaifsisiKHin^s **' < ? < , 8 ' ' j. *> < - / V' si. V ** ! .. .... .! , y.l.. ;.u,''*4 ...: - VI--RESERVES FOR DEPRECIATION, DEPLETION, AND AMORTIZATION ' OF PROPERTY, PLANT, AND EQUIPMENT . THE GLIDDEN COMPANY AND SUBSIDIARIES Year ended October 31, 1954 :o l . B COL. C e at Beginning if Period ADDITIONS (1) , Charged to Profit and ' Loss or Income (Z) Charged to Other Accounts--Describe COL. D DEDUCTIONS FROM RESERVES <X) - Retirements, Renewals, and .. Replacements <2> Other-- ^ - ' Describe 174,010 299,607 50,318 6,236,019 4,528,13'5 812,444 192,797 '2,293,330 $ -039,635 5,297- . 578^737 . 553,540 13 5", 388 20,,038 ' $ .$2,332,685 $ ` 793' 793 $ 6,100. 3,005 1,278 113,865 1 764,370 -0'24.236 . ' - $1 912,854 A COL. E '. Balance at Close of Period $ 167,910^ 336,337 54,337, 6,700,94r 14,317,305 948 625 188,599 $22,713,954 *> J . r. ERNST ft ERNST :'V \ .; i :'V SCHEDULE VI--RESERVES FOR DEPRECIATION, DEPLETION , ! OF PROPERTY, PLANT, AND EQUIPMENT THE GLIDDEN COMPANY AND SUBSIDIARIE Year ended October 31, 195^ i ERNST & ERNST '> COL. A DESCRIPTION V * , V* - "' ` ... - * - . r SCHEDULE XII--RESERVES j THEf GLlDDEN COMPANY AND SUBSIDIARIES 44Tear. ended October 31, 195*+ COL. B Balance at Beginning of Period COL. ADDITI (1) Charged to Profit and Loia or Income For doubtf^u. accounts, discounts | etc. $ >+59,010 V Note A - Accounts charged off. Note B -Discounts allowed in excess of amount : charged dir, ctly to income. $ 315,89^  !- - i;';7;: /;%i:a;7fi;77-:*77f7a77 "7 rrr . .' .: 77 .' .:. ' '' . ': 7-77 "7, ; ' 'I. 77:;: :[; # XViiSl:: v-c w777;7;i~;7; 777777? '777...7...;.-..7.7.7..7.7...7...'r" .' .:;v;7777777j;Sffi|l|yaSli;S:ili 77777777:77; ` f7 ; t1 > l .7'7) 77iT7* ' ,,i si SCHEDULE XII--RESERVES if4ji;7. 7 S<i-.isjfk:, "I;.7 7 -'4 ' ";: Vs1': ;v! 77;., DEN COMPANY AND SUBSIDIARIES ended October 31, 195^ COL. B lalance at Beginning of Period ,t COL. C ADDITIONS (1) Charged to^Profit and (2) Charged to Other Accounts--Describe COL. D 1 5 . ' - i . 7 - Deductions from Reserves--Describe * .- ' - ' ' V ' . COL. E .- :. ' .- .. ' Balance at Close of Period s 459,010 $ 315,894 $.302,427A 30,688B '^ $ 441,789 ^ SiliSSPs, a: ifs-s-a- Vw. 17. . 7`7, ' ssawiiSiiBgiB p^nHPftR < 'Va;*v r , ,, PPLEMENTARY. PROFIT AND LOSS INFORMATION r nMmnTV arm CTTOSTTlTSPTTi'.R' I ERNST & ERNST SCHEDULE XVI-liuPPLEMENTARY PROFIT AND LOSS INFOR] t h e ' g l id d e n c o mp a n y a n d s u b s id ia r ie s I k -, 't t , ; . . .. ,-v I. .^e,'Year* ended October 31? 195^ .-! COL. A j COL. B :v 'jm - ; ' ! .', ; | . CHARGED DIRECTLY TO PROFIT AND LOSS ; ; ITEM : j -V V' ' -:v v V, '- .v- To IC1o)st o.f Goods Sold or Operating Expenses (2) Other ,'fyj C Maintenance and repairs Payroll '/ j Real and personal property and miscellaneous I, Management and service contract fees. Rents Royalties . I $2,381,203 2,332,685 $ 119,854' -o- 'V 9 253,3^3 $ 184,295 ....-6--7--8--.-7--9--4----------------- ?-.9?.,5?8 $ 932,137 9 476,823 -0" 104,676 451,782 132,639 -o- : 'PLEMENTARY PROFIT AND LOSS INFORMATION DDEN COMPANY AND SUBSIDIARIES ar.-ended October 31, 1954 COL. B CHARGED DIRECTLY TO PROFIT AND LOSS (1) , To Cost of Goods Sold or Operating Expenses '. ; (2) Other v COL. C CHARGED TO OTHER ACCOUNTS Account (2) : Amount COL. D Total OO $2,381,203 2,332,685 1 ,$ 253,343 678.704 $ 932,137 -O" 104,676 132,639 1> $ 119,854 -- 0" $ 184,295 202.528 $ 476,823 -0451,782 -0- *4 vl'lyl ** * . v 01 1y.l : v 01 1 -1 11 $2,501,057 2,332., 685 $ *+37,638 ` ' 971.322 $ -0- $1,408,960 -0- -0-O- 556,458 -0- 132,639 - s. t ' ) 1 \ i! 5 i |i