-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Cbnc68Zh1mvHwtFXfEeLOrTBo70qAcq0kLuEAh0vlwetxyBcW4Ks4NCq/zVhtv9A JAB6AP2M+uauf+hpbc49bQ== 0000950152-97-004921.txt : 19970701 0000950152-97-004921.hdr.sgml : 19970701 ACCESSION NUMBER: 0000950152-97-004921 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970630 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: GOODYEAR TIRE & RUBBER CO /OH/ CENTRAL INDEX KEY: 0000042582 STANDARD INDUSTRIAL CLASSIFICATION: TIRES AND INNER TUBES [3011] IRS NUMBER: 340253240 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-01927 FILM NUMBER: 97632933 BUSINESS ADDRESS: STREET 1: 1144 E MARKET ST CITY: AKRON STATE: OH ZIP: 44316 BUSINESS PHONE: 2167962121 MAIL ADDRESS: STREET 1: 1144 E MARKET ST CITY: AKRON STATE: OH ZIP: 44316 11-K 1 GOODYEAR EMPLOYEE SAVINGS PLAN - HOURLY 11-K 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 -------- FORM 11-K ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 1996 COMMISSION FILE NUMBER: 1-1927 -------- THE GOODYEAR TIRE & RUBBER COMPANY EMPLOYEE SAVINGS PLAN FOR HOURLY EMPLOYEES (FULL TITLE OF THE PLAN) -------- THE GOODYEAR TIRE & RUBBER COMPANY (NAME OF ISSUER OF THE SECURITIES) 1144 EAST MARKET STREET AKRON, OHIO 44316-0001 (ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICE) 2 THE GOODYEAR TIRE & RUBBER COMPANY EMPLOYEE SAVINGS PLAN FOR HOURLY EMPLOYEES ITEM 1. Not applicable. ITEM 2. Not applicable. ITEM 3. Not applicable. ITEM 4. FINANCIAL STATEMENTS OF THE PLAN The Financial Statements of The Goodyear Tire & Rubber Company Employee Savings Plan for Hourly Employees for the fiscal year ended December 31, 1995, together with the report of Price Waterhouse LLP, independent accountants, are attached to this Annual Report on Form 11-K as Annex A, and are by specific reference incorporated herein and filed as a part of hereof. The Financial Statements and the Notes thereto are presented in lieu of the financial statements required by Items 1, 2 and 3 of Form 11-K and were prepared in accordance with the financial reporting requirements of the Employee Retirement Income Security Act of 1974. EXHIBIT. CONSENT OF INDEPENDENT ACCOUNTANTS (EXHIBIT NO. 23) Consent of Price Waterhouse LLP, independent accountants, to incorporation by reference of their report set forth at page 2 of Annex A to this Form 11-K in Registration Statement No. 33-65181 on Form S-8. SIGNATURES PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE PLAN ADMINISTRATOR HAS DULY CAUSED THIS ANNUAL REPORT TO BE SIGNED BY THE UNDERSIGNED THEREUNTO DULY AUTHORIZED. THE GOODYEAR TIRE & RUBBER COMPANY, PLAN ADMINISTRATOR OF THE GOODYEAR TIRE & RUBBER COMPANY EMPLOYEE SAVINGS PLAN FOR HOURLY EMPLOYEES Dated: June 26, 1997 By: /s/ Richard W Hauman -------------------------------------- Richard W Hauman, Vice President and Treasurer 1 3 ANNEX A TO Form 11-K THE GOODYEAR TIRE & RUBBER COMPANY ---------------------------------- EMPLOYEE SAVINGS PLAN --------------------- FOR HOURLY EMPLOYEES -------------------- * * * * * FINANCIAL STATEMENTS -------------------- DECEMBER 31, 1996 AND 1995 -------------------------- 4 THE GOODYEAR TIRE & RUBBER COMPANY ---------------------------------- EMPLOYEE SAVINGS PLAN FOR HOURLY EMPLOYEES ------------------------------------------ INDEX TO FINANCIAL STATEMENTS ----------------------------- DECEMBER 31, 1996 AND 1995 --------------------------
PAGE ---- Report of Independent Accountants 2 Financial Statements: Statement of Net Assets Available for Plan Benefits, with Fund Information at December 31, 1996 and 1995 3-4 Statement of Changes in Net Assets Available for Plan Benefits, with Fund Information for the Years Ended December 31, 1996 and 1995 3-4 Notes to Financial Statements 5-14
Note: Certain schedules required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because of the absence of the conditions under which they are required. 5 REPORT OF INDEPENDENT ACCOUNTANTS --------------------------------- June 25, 1997 To the Plan Administrator and Participants of the Employee Savings Plan for Hourly Employees (sponsored by The Goodyear Tire & Rubber Company) In our opinion, the accompanying statement of net assets available for plan benefits and the related statement of changes in net assets available for plan benefits present fairly, in all material respects, the net assets available for benefits of the Employee Savings Plan for Hourly Employees (sponsored by The Goodyear Tire & Rubber Company) at December 31, 1996 and 1995, and the changes in net assets available for plan benefits for the years then ended, in conformity with generally accepted accounting principles. These financial statements are the responsibility of the Plan's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The Fund Information in the statement of net assets available for plan benefits and the statement of changes in net assets available for plan benefits is presented for purposes of additional analysis rather than to present the net assets available for plan benefits and changes in net assets available for plan benefits of each fund. The Fund Information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. 6 THE GOODYEAR TIRE & RUBBER COMPANY ---------------------------------- EMPLOYEE SAVINGS PLAN FOR HOURLY EMPLOYEES ------------------------------------------ STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION --------------------------------------------------------------------------
(Dollars in Thousands) December 31, 1996 ------------------------------------------------------------------------------------------- Fund Information ------------------------------------------------------------------------------ Conservative Moderate Aggressive S&P 500 Large Stable Asset Asset Asset Equity Capitalization Value Allocation Allocation Allocation Index Equity Total Fund Fund Fund Fund Fund Fund -------- -------- -------- -------- -------- -------- -------- Plan's Interest in Master Trust Representing Total Assets Available for Plan Benefits $ 33,756 $ 11,771 $ 61 $ 262 $ 167 $ 6,395 $ 361 ======== ======== ======== ======== ======== ======== ======== (Dollars in Thousands) December 31, 1996 -------------------------------------------------------- Fund Information -------------------------------------------------------- Small International Capitalization Stock Company Equity Equity Stock Loan Fund Fund Fund Fund -------- -------- -------- -------- Plan's Interest in Master Trust Representing Total Assets Available for Plan Benefits $ 1,594 $ 113 $ 9,797 $ 3,235 ======== ======== ======== ========
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, --------------------------------------------------------------- WITH FUND INFORMATION ---------------------
(Dollars in Thousands) For the Year Ended December 31, 1996 -------------------------------------------------------------------------------------------- Fund Information ------------------------------------------------------------------------------- Conservative Moderate Aggressive S&P 500 Large Stable Asset Asset Asset Equity Capitalization Value Allocation Allocation Allocation Index Equity Total Fund Fund Fund Fund Fund Fund -------- -------- -------- -------- -------- -------- -------- Increase in Assets: Contributions: Employer $ 599 $ -- $ -- $ -- $ -- $ -- $ -- Employee 2,017 1,273 12 47 21 555 38 -------- -------- -------- -------- -------- -------- -------- 2,616 1,273 12 47 21 555 38 Investment Income from Plan's Interest in Master Trust 4,280 824 3 44 14 1,281 21 Decrease in Assets: Benefits Paid to Participants or Their Beneficiaries 387 342 -- -- -- 6 -- Administrative Expenses 88 46 -- -- -- 19 -- -------- -------- -------- -------- -------- -------- -------- 475 388 -- -- -- 25 -- Transfers: Transfers Between Plans (1,156) (460) -- (6) -- (273) -- Transfers Between Funds -- (1,825) 45 (24) 129 632 310 Loan Transfers To or From Plan -- 81 -- -- -- 13 -- Loans to Participants -- (1,786) (3) (14) (4) (544) (31) Loan Repayments: -- -- -- -- -- -- -- Principal -- 596 3 15 6 259 18 Interest (1) 172 1 3 1 54 5 -------- -------- -------- -------- -------- -------- -------- (1,157) (3,222) 46 (26) 132 141 302 -------- -------- -------- -------- -------- -------- -------- Increase in Assets During the Year 5,264 (1,513) 61 65 167 1,952 361 Net Assets at Beginning of Year 28,492 13,284 -- 197 -- 4,443 -- -------- -------- -------- -------- -------- -------- -------- Net Assets at End of Year $ 33,756 $ 11,771 $ 61 $ 262 $ 167 $ 6,395 $ 361 ======== ======== ======== ======== ======== ======== ======== (Dollars in Thousands) For the Year Ended December 31, 1996 --------------------------------------------------- Fund Information --------------------------------------------------- Small International Capitalization Stock Company Equity Equity Stock Loan Fund Fund Fund Fund -------- -------- -------- -------- Increase in Assets: Contributions: Employer $ -- $ -- $ 599 $ -- Employee 55 16 -- -- -------- -------- -------- -------- 55 16 599 -- Investment Income from Plan's Interest in Master Trust 155 18 1,648 272 Decrease in Assets: Benefits Paid to Participants or Their Beneficiaries 3 -- 36 -- Administrative Expenses -- -- 23 -- -------- -------- -------- -------- 3 -- 59 -- Transfers: Transfers Between Plans -- (417) -- Transfers Between Funds 1,411 83 (761) -- Loan Transfers To or From Plan -- -- -- (94) Loans to Participants (61) (10) -- 2,453 Loan Repayments: -- -- -- -- Principal 31 5 -- (933) Interest 6 1 -- (244) -------- -------- -------- -------- 1,387 79 (1,178) 1,182 -------- -------- -------- -------- Increase in Assets During the Year 1,594 113 1,010 1,454 Net Assets at Beginning of Year -- -- 8,787 1,781 -------- -------- -------- -------- Net Assets at End of Year $ 1,594 $ 113 $ 9,797 $ 3,235 ======== ======== ======== ========
The accompanying notes are an integral part of these statements. 3 7 THE GOODYEAR TIRE & RUBBER COMPANY ---------------------------------- EMPLOYEE SAVINGS PLAN FOR HOURLY EMPLOYEES ------------------------------------------ STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION --------------------------------------------------------------------------
(Dollars in Thousands) December 31, 1995 -------------------------------------------------------------------------------- Fund Information -------------------------------------------------------------------------------- Company Fixed Stock Stock Interest Equity Balanced Loan Total Fund Fund Fund Fund Fund ---------- ---------- ---------- ---------- ---------- ---------- Plan's Interest in Master Trust Representing Total Assets Available for Plan Benefits $ 28,492 $ 8,787 $ 13,284 $ 4,443 $ 197 $ 1,781 ========== ========== ========== ========== ========== ========== STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION ------------------------------------------------------------------------------------- (Dollars in Thousands) For the Year Ended December 31, 1995 -------------------------------------------------------------------------------- Fund Information -------------------------------------------------------------------------------- Company Fixed Stock Stock Interest Equity Balanced Loan Total Fund Fund Fund Fund Fund ---------- ---------- ---------- ---------- ---------- ---------- Increase in Assets: Contributions: Employer $ 614 $ 614 $ -- $ -- $ -- $ -- Employee 1,982 -- 1,471 497 14 -- ---------- ---------- ---------- ---------- ---------- ---------- 2,596 614 1,471 497 14 -- Investment Income from Plan's Interest in Master Trust 4,383 2,343 864 1,040 36 100 Decrease in Assets: Benefits Paid to Participants or Their Beneficiaries 710 163 606 (46) (24) 11 Administrative Expenses 1 -- -- -- 1 -- ---------- ---------- ---------- ---------- ---------- ---------- 711 163 606 (46) (23) 11 Transfers: Transfers Between Plans (396) (115) (237) (33) -- (11) Transfers Between Funds -- -- (352) 380 (28) -- Transfers To or From Plan -- -- -- -- -- -- Loans to Participants -- -- (800) (96) (8) 904 Loan Repayments: -- -- -- -- -- -- Principal -- -- 590 157 7 (754) Interest -- -- 80 22 1 (103) ---------- ---------- ---------- ---------- ---------- ---------- (396) (115) (719) 430 (28) 36 ---------- ---------- ---------- ---------- ---------- ---------- Increase in Assets During the Year 5,872 2,679 1,010 2,013 45 125 Net Assets at Beginning of Year 22,620 6,108 12,274 2,430 152 1,656 ---------- ---------- ---------- ---------- ---------- ---------- Net Assets at End of Year $ 28,492 $ 8,787 $ 13,284 $ 4,443 $ 197 $ 1,781 ========== ========== ========== ========== ========== ==========
The accompanying notes are an integral part of these statements 4 8 THE GOODYEAR TIRE & RUBBER COMPANY ---------------------------------- EMPLOYEE SAVINGS PLAN FOR HOURLY EMPLOYEES ------------------------------------------ NOTES TO FINANCIAL STATEMENTS ----------------------------- DECEMBER 31, 1996 AND 1995 -------------------------- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: - ------------------------------------------- Basis of Accounting - ------------------- The accounts of The Goodyear Tire & Rubber Company Employee Savings Plan for Hourly Employees (the "Plan") are maintained on the accrual basis of accounting and in accordance with The Northern Trust Company (the "Trustee") Trust Agreement, effective November 1, 1995. The trust was amended effective November 1, 1995 to change the Trustee of the Plan from Bankers Trust Company to The Northern Trust Company. All assets of the Plan in the master trust were transferred accordingly. Trust Assets - ------------ Savings plans sponsored by The Goodyear Tire & Rubber Company and certain subsidiaries (the "Company") maintain their assets in a master trust administered by the Trustee. At December 31, 1996 and 1995, the Company sponsored six savings plans. The Plan's undivided interest in the trust is presented in the accompanying financial statements in accordance with the allocation made by the Trustee. At December 31, 1996 and 1995, the Plan's undivided interest in the master trust was 2.1%. Asset Valuation - --------------- The majority of the assets of the Plan are valued at the current market value. Investments in the Company Stock Fund are valued at the last reported sales price on the last business day of the month. If no sales were reported on that date, the shares are valued at the last bid price. Investments held in the Stable Value Fund are invested in various instruments that have a rate of return, and are reported at contract value. Investments in the Conservative Asset Allocation Fund, Moderate Asset Allocation Fund, Aggressive Asset Allocation Fund, S&P 500 Index Stock Equity Fund, Small Capitalization Stock Equity Fund, Large Capitalization Stock Equity Fund, and the International Stock Equity Fund are valued based on units of participation in a commingled fund as reported by the fund manager. Investments in the Balanced Fund are valued based on units of participation in a commingled fund as reported by the fund manager. The allocation of assets, interest and dividend income, and realized and unrealized appreciation and depreciation is made based upon contributions received and benefits paid by each participating plan on a monthly basis. 5 9 Income Recognition - ------------------ Employer and employee contributions are recognized in Plan equity on the accrual basis of accounting. Dividend income is recorded on the ex-dividend date. Interest income is recorded as earned. Appreciation or depreciation on Company common stock distributed to participants is the difference between the weighted average cost and the market value on the monthly valuation date preceding the distribution. Concentration of Credit Risk - ---------------------------- The Stable Value Fund of the Plan invests part of the fund in guaranteed investment contracts of financial institutions with strong credit ratings and has established guidelines relative to diversification and maturities that maintain safety and liquidity. Use of Estimates - ---------------- The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the basic financial statements and related notes to financial statements. Changes in such estimates may affect amounts reported in future years. GENERAL DESCRIPTION AND OPERATION OF THE PLAN: - ---------------------------------------------- Inception - --------- The Plan is a defined contribution plan which became effective July 1, 1984. Eligibility - ----------- Certain hourly employees of the Company are eligible to participate in the Plan after completing one year of continuous service. At the end of the 1996 plan year, approximately 552 employees (594 in 1995) of the Company were eligible, with approximately 441 employees participating in the Plan in 1996 (479 in 1995). Vesting - ------- Employee contributions are fully vested. Employer matching contributions become vested after the participant has completed four years of continuous service with the Company. 6 10 Contributions - ------------- Eligible employees may elect to contribute any whole percent from 1% to 16% of earnings including wages, bonuses, commissions, overtime and vacation pay into the Plan. Prior to February 1, 1996, participating employees could elect to have their contribution invested in the Fixed Interest Fund, the Balanced Fund, the Stock Equity Fund, or in any combination of these three funds in multiples of 10%. Beginning February 1, 1996, participating employees may elect to have their contributions invested in the Stable Value Fund, Conservative Asset Allocation Fund, Moderate Asset Allocation Fund, Aggressive Asset Allocation Fund, S&P 500 Index Stock Equity Fund, Small Capitalization Stock Equity Fund, Large Capitalization Stock Equity Fund, the International Stock Equity Fund, or in any combination of these eight funds in multiples of 1%. The Company calculates and deducts employee contributions from gross earnings each pay period based on the percent elected by the employee. Employees may change their contribution percent any time up to the 15th day of the month for changes to be effective on the 1st day of the following month. Employees may transfer amounts attributable to employee contributions from one fund to the other on a daily basis. The minimum amount to be transferred is $100. Eligible employees may enroll in the Plan effective on the 1st day of the month by enrolling by the 15th day of the prior month. Employees may suspend their contributions at any time effective immediately. Employees who are 52 years of age or older are able to transfer employer contributions from the Company Stock Fund into the plan's other investment funds. The Plan has been established under section 401 of the Internal Revenue Code. Therefore, employee and employer contributions to the Plan are not subject to federal withholding tax, but are taxable when they are withdrawn from the Plan. The Board of Directors of the Company determines the matching percent used as the employer contribution for each Plan year. The Company matching contributions are limited to the first 6% of employee contributions at the rate of 50% and employee contributions are limited to $9,500 and $9,240 during 1996 and 1995, respectively. Investments - ----------- The Trustee of the Plan maintains the following ten funds under the Plan (The following funds were added February 1, 1996 - Conservative Asset Allocation Fund, Aggressive Asset Allocation Fund, Large Capitalization Stock Equity Fund, Small Capitalization Stock Equity Fund, and the International Stock Equity Fund). * Stable Value Fund (formerly Fixed Interest Fund) - Employee contributions are invested in various investment contracts which provide for rates of return for particular periods of time. 7 11 * Conservative Asset Allocation Fund - Employee contributions are invested in a commingled fund containing a portfolio of U.S. common stocks and bonds which provide an investment return similar to a portfolio invested 40% in the Russell 3000 Index plus reinvested dividends and 60 % in bonds which compose the Lehman Aggregate Bond Index. * Moderate Asset Allocation Fund (formerly Balanced Fund) - Employee contributions are invested in a commingled fund containing a portfolio of U.S. common stocks and bonds which provide an investment return similar to a portfolio invested 60% in the Russell 3000 Index plus reinvested dividends and 40% in bonds which compose the Lehman Aggregate Bond Index. * Aggressive Asset Allocation Fund - Employee contributions are invested in a commingled fund containing a portfolio of U.S. Common Stocks, international stocks, and bonds which provide an investment return similar to a portfolio invested 65% in the Russell 3000 Index plus reinvested dividends, 15% in the EAFE Index, and 20% in bonds which compose the Lehman Aggregate Bond Index. * S&P 500 Index Stock Equity Fund (formerly Stock Equity Fund) - Employee contributions are invested in a commingled fund consisting of a portfolio of common stocks which provide a return similar to the Standard and Poor's Composite Index plus reinvested dividends. * Large Capitalization Stock Equity Fund - Employee contributions are invested in a commingled fund containing a portfolio of medium and large companies. The objective of the fund is to invest in companies with better-than-average prospects for appreciation. * Small Capitalization Stock Equity Fund - Employee contributions are invested in a commingled fund containing a portfolio of common stocks of small companies that are expected to provide long term capital growth. * International Stock Equity Fund - Employee contributions are invested in a commingled fund containing a portfolio of common stocks and debt obligations of companies and governments located outside of the United States that are expected to provide long-term capital growth. * Loan Investment Fund - Employee contributions are transferred from other funds into the Loan Investment Fund, and then loaned to the participant. The interest rate on the loan is determined by the Trustee. * Company Stock Fund - Employer contributions are invested in Goodyear common stock except for short-term investments needed for Plan operations. During 1995, the price per share of Goodyear common stock on The New York Stock Exchange Composite Transactions ranged from $41.50 to $53.00 ($33.00 to $47.50 during 1995). The closing price per share was $51.38 at December 31, 1996 ($45.38 at December 31, 1995). 8 12 Participant Accounts - -------------------- A Stable Value Fund, Conservative Asset Allocation Fund, Moderate Asset Allocation Fund, Aggressive Asset Allocation Fund, S&P 500 Index Stock Equity Fund, Small Capitalization Stock Equity Fund, Large Capitalization Stock Equity Fund, the International Stock Equity Fund, Loan Investment Fund, and Company Stock fund have been established for each participant in the Plan. All accounts are valued daily by the Trustee. Interest is automatically reinvested in each participant's respective accounts. Price fluctuations and dividends in common stock of the Company and companies in the Conservative Asset Allocation Fund, Moderate Asset Allocation Fund, Aggressive Asset Allocation Fund, S&P 500 Index Stock Equity Fund, Small Capitalization Stock Equity Fund, Large Capitalization Stock Equity Fund, the International Stock Equity Fund, and the Company Stock Fund are reflected in the unit value of the fund which effects the value of the participant's accounts. Plan Withdrawals and Distributions - ---------------------------------- Participants may withdraw vested amounts from their accounts if they: * Attain the age of 59 1/2, or * Qualify for a serious financial hardship. The Internal Revenue Service (IRS) issued guidelines governing financial hardship. Under the IRS guidelines, withdrawals are permitted for severe financial hardship for the following reasons: * Unreimbursed medical expense of participant, spouse, or dependent. * Post-secondary education of participant, spouse, or dependent. * Prevention of eviction from primary residence of participant. * Personal liability for expenses arising out of the death of a member of participant's family. * Purchase of a primary residence of participant. * Prevention of foreclosure on primary residence of participant. Contributions to the Plan are suspended for 12 months subsequent to a financial hardship withdrawal. Participant vested amounts are payable upon retirement, death or other termination of employment. All withdrawals and distributions are valued as of the end of the month they are processed, and are subject to federal income tax upon receipt. Any non-vested Company contributions are forfeited and applied to reduce future contributions by the Company. The Plan had no forfeiture credits in 1996 and 1995. 9 13 Loan Investment Fund - -------------------- Eligible employees may borrow money from their participant accounts. The minimum amount to be borrowed is $1,000. The maximum amount to be borrowed is the lesser of $50,000 reduced by the highest outstanding balance of any loan during the preceding twelve month period, or 50% of the participant's vested account balance. Effective February 1, 1996, the maximum number of loans that a participant may have outstanding was increased from one to two. The interest rate charged will be a fixed rate which will be established at the time of the loan application. The interest rates was 9.25% during 1996 and 8.75% to 10.0% during 1995. Loan repayments, with interest, are made through payroll deductions. If a loan is not repaid when due, the loan balance will be treated as a taxable distribution from the Plan. Expenses - -------- Expenses of administering the Plan, including the payment of Trustee's fees and brokerage commissions associated with the Company Stock Fund, are paid by the Company. Expenses related to the asset management of the Investment Funds are paid from such Funds which reduces the investment return reported and credited to participant accounts. Termination Provisions - ---------------------- The Company anticipates and believes that the Plan will continue without interruption, but reserves the right to discontinue the Plan. In the event of termination, the obligation of the Company to make further contributions ceases. All participants' accounts would then be fully vested with respect to Company contributions. RELATED PARTY TRANSACTIONS: - --------------------------- The Trustee serves as the fund manager of the S&P 500 Equity Index Fund. The Company Stock Fund is designed primarily for investment in common stock of the Company. TAX STATUS OF PLAN: - ------------------- The IRS has advised on May 22, 1995 that the Plan is qualified in accordance with the appropriate sections of the Internal Revenue Code, and the trust established with the Plan constitutes a qualified trust and is therefore exempt from federal income taxes. The plan administrator does not anticipate that changes in the Plan or other events occurring after the receipt of the IRS ruling will affect the qualification of the Plan or the tax exempt status of the Trust. FINANCIAL DATA OF THE MASTER TRUST: (SEE PAGES 11 - 14) - ----------------------------------- 14 THE GOODYEAR TIRE & RUBBER COMPANY ---------------------------------- MASTER TRUST ------------ STATEMENT OF NET ASSETS, WITH FUND INFORMATION ----------------------------------------------
(Dollars in Thousands) December 31, 1996 --------------------------------------------------------------- Fund Information ----------------------------------------------- Conservative Moderate Stable Asset Asset Value Allocation Allocation Total Fund Fund Fund ---------- ---------- ---------- ---------- Assets: Investments at Fair Market Value: State Street Income and Growth Fund, Cost $6,870 - 675,788 Units $ 7,363 $ -- $ 7,363 $ -- State Street Moderate Asset Allocation Fund, Cost $30,809 - 2,951,057 Units 35,076 -- -- 35,076 State Street Life Solutions Growth A, Cost $11,639 - 949,240 Units 12,772 -- -- -- Collective Daily Stock Index Fund, Cost $231,718 - 16,369,098 Units 290,060 -- -- -- Twentieth Century Investors Income Ultra Fund, Cost $25,304 - 909,122 Units 25,537 -- -- -- Franklin Strategic Series Small Cap Growth Fund, Cost $42,224 - 2,188,282 Units 45,341 -- -- -- Templeton Foreign Fund, Cost $15,889 - 1,639,127 Units 16,981 -- -- -- Common Stock of The Goodyear Tire & Rubber Company, Cost $206,299 - 8,448,371 Shares 434,035 -- -- -- Short-Term Investments 29,439 22,775 -- -- Promissory Notes 80,906 -- -- -- ---------- ---------- ---------- ---------- 977,510 22,775 7,363 35,076 ---------- ---------- ---------- ---------- Investments at Contract Value: Guaranteed Investment Contracts 644,122 644,122 -- -- ---------- ---------- ---------- ---------- Receivables: Employee Contributions 28 16 -- 1 Employer Contributions 70 (13) -- -- Transfers -- 117 -- (61) Accrued Interest and Dividends 2,555 1,065 11 53 Pending Security Sales 2,481 -- -- -- ---------- ---------- ---------- ---------- 5,134 1,185 11 (7) ---------- ---------- ---------- ---------- Total Assets 1,626,766 668,082 7,374 35,069 ---------- ---------- ---------- ---------- Liabilities: Administrative Expenses Payable 899 452 -- -- Distributions Payable 504 232 2 11 Forfeiture Credits -- -- -- -- ---------- ---------- ---------- ---------- Total Liabilities 1,403 684 2 11 ---------- ---------- ---------- ---------- Net Assets $1,625,363 $ 667,398 $ 7,372 $ 35,058 ========== ========== ========== ========== (Dollars in Thousands) December 31, 1996 ----------------------------------------------------------------- Fund Information ----------------------------------------------------------------- Aggressive S&P 500 Large Small Asset Equity Capitalization Capitalization Allocation Index Equity Equity Fund Fund Fund Fund ---------- ---------- ---------- ---------- Assets: Investments at Fair Market Value: State Street Income and Growth Fund, Cost $6,870 - 675,788 Units $ -- $ -- $ -- $ -- State Street Moderate Asset Allocation Fund, Cost $30,809 - 2,951,057 Units -- -- -- -- State Street Life Solutions Growth A, Cost $11,639 - 949,240 Units 12,772 -- -- -- Collective Daily Stock Index Fund, Cost $231,718 - 16,369,098 Units -- 290,060 -- -- Twentieth Century Investors Income Ultra Fund, Cost $25,304 - 909,122 Units -- -- 25,537 -- Franklin Strategic Series Small Cap Growth Fund, Cost $42,224 - 2,188,282 Units -- -- -- 45,341 Templeton Foreign Fund, Cost $15,889 - 1,639,127 Units -- -- -- -- Common Stock of The Goodyear Tire & Rubber Company, Cost $206,299 - 8,448,371 Shares -- -- -- -- Short-Term Investments -- -- -- -- Promissory Notes -- -- -- -- ---------- ---------- ---------- ---------- 12,772 290,060 25,537 45,341 ---------- ---------- ---------- ---------- Investments at Contract Value: Guaranteed Investment Contracts -- -- -- -- ---------- ---------- ---------- ---------- Receivables: Employee Contributions -- 10 -- 1 Employer Contributions -- -- -- -- Transfers (42) (328) 42 317 Accrued Interest and Dividends 20 440 39 69 Pending Security Sales -- -- -- -- ---------- ---------- ---------- ---------- (22) 122 81 387 ---------- ---------- ---------- ---------- Total Assets 12,750 290,182 25,618 45,728 ---------- ---------- ---------- ---------- Liabilities: Administrative Expenses Payable -- 192 -- -- Distributions Payable 4 90 8 14 Forfeiture Credits -- -- -- -- ---------- ---------- ---------- ---------- Total Liabilities 4 282 8 14 ---------- ---------- ---------- ---------- Net Assets $ 12,746 $ 289,900 $ 25,610 $ 45,714 ========== ========== ========== ========== (Dollars in Thousands) December 31, 1996 ------------------------------------------------ Fund Information ------------------------------------------------ International Stock Company Equity Stock Loan Fund Fund Fund ---------- ---------- ---------- Assets: Investments at Fair Market Value: State Street Income and Growth Fund, Cost $6,870 - 675,788 Units $ -- $ -- $ -- State Street Moderate Asset Allocation Fund, Cost $30,809 - 2,951,057 Units -- -- -- State Street Life Solutions Growth A, Cost $11,639 - 949,240 Units -- -- -- Collective Daily Stock Index Fund, Cost $231,718 - 16,369,098 Units -- -- -- Twentieth Century Investors Income Ultra Fund, Cost $25,304 - 909,122 Units -- -- -- Franklin Strategic Series Small Cap Growth Fund, Cost $42,224 - 2,188,282 Units -- -- -- Templeton Foreign Fund, Cost $15,889 - 1,639,127 Units 16,981 -- -- Common Stock of The Goodyear Tire & Rubber Company, Cost $206,299 - 8,448,371 Shares -- 434,035 -- Short-Term Investments -- 6,664 -- Promissory Notes -- -- 80,906 ---------- ---------- ---------- 16,981 440,699 80,906 ---------- ---------- ---------- Investments at Contract Value: Guaranteed Investment Contracts -- -- -- ---------- ---------- ---------- Receivables: Employee Contributions -- -- -- Employer Contributions -- 83 -- Transfers 33 (222) 144 Accrued Interest and Dividends 26 708 124 Pending Security Sales -- 2,481 -- ---------- ---------- ---------- 59 3,050 268 ---------- ---------- ---------- Total Assets 17,040 443,749 81,174 ---------- ---------- ---------- Liabilities: Administrative Expenses Payable -- 255 -- Distributions Payable 5 138 -- Forfeiture Credits -- -- -- ---------- ---------- ---------- Total Liabilities 5 393 -- ---------- ---------- ---------- Net Assets $ 17,035 $ 443,356 $ 81,174 ========== ========== ==========
11 15 THE GOODYEAR TIRE & RUBBER COMPANY ---------------------------------- MASTER TRUST ------------ STATEMENT OF NET ASSETS, WITH FUND INFORMATION ----------------------------------------------
(Dollars in Thousands) December 31, 1995 ---------------------------------------------------------------------------- Fund Information ---------------------------------------------------------------------------- Company Fixed Stock Stock Interest Equity Balanced Loan Total Fund Fund Fund Fund Fund ---------- ---------- ---------- ---------- ---------- ---------- Assets: Investments at Fair Market Value: Common Stock of The Goodyear Tire & Rubber Company, Cost $220,265 - 9,196,871 Shares 417,309 417,309 -- -- -- -- State Street Moderate Asset, Cost $18,164 - 1,815,442 Units, 18,809 -- -- -- 18,809 -- Collective Daily Stock Index Fund, Cost $202,938 - 14,834,407 Units 213,765 -- -- 213,765 -- -- Short-Term Investments 61,352 1,199 60,153 -- -- -- Promissory Notes 43,952 -- -- -- -- 43,952 ---------- ---------- ---------- ---------- ---------- ---------- 755,187 418,508 60,153 213,765 18,809 43,952 ---------- ---------- ---------- ---------- ---------- ---------- Investments at Contract Value: Guaranteed Investment Contracts 601,512 -- 601,512 -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- Receivables: Employee Contributions 6,344 -- 5,766 284 294 -- Employer Contributions 2,968 2,968 -- -- -- -- Transfers -- -- -- -- -- -- Loan Repayments -- -- 2,436 869 69 (3,374) Accrued Interest and Dividends 267 9 258 -- -- -- Reimbursement for Expenses 22 22 -- -- -- -- Distribution Receivable 112 20 92 -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- 9,713 3,019 8,552 1,153 363 (3,374) ---------- ---------- ---------- ---------- ---------- ---------- Total Assets 1,366,412 421,527 670,217 214,918 19,172 40,578 ---------- ---------- ---------- ---------- ---------- ---------- Liabilities: Distributions Payable -- -- -- -- -- -- Forfeiture Credits 41 41 -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- Total Liabilities 41 41 -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- Net Assets $1,366,371 $ 421,486 $ 670,217 $ 214,918 $ 19,172 $ 40,578 ========== ========== ========== ========== ========== ==========
12 16 THE GOODYEAR TIRE & RUBBER COMPANY ---------------------------------- MASTER TRUST ------------ STATEMENT OF CHANGES IN NET ASSETS, WITH FUND INFORMATION ---------------------------------------------------------
(Dollars in Thousands) For the Year Ended December 31, 1996 ------------------------------------------------------------------------------------ Fund Information ------------------------------------------------------------------ Conservative Moderate Aggressive Stable Asset Asset Asset Value Allocation Allocation Allocation Total Fund Fund Fund Fund ----------- ----------- ----------- ----------- ----------- Increase in Assets: Contributions: Employer $ 37,939 $ 306 $ -- $ -- $ -- Employee 113,952 68,429 666 4,966 1,628 ----------- ----------- ----------- ----------- ----------- 151,891 68,735 666 4,966 1,628 Interest and Dividend Income 55,195 38,334 7 32 10 Net Appreciation (Depreciation) in Fair Market Value of Assets 117,457 246 516 3,807 1,165 ----------- ----------- ----------- ----------- ----------- 172,652 38,580 523 3,839 1,175 Decrease in Assets: Benefits Paid to Participants or Their Beneficiaries 63,857 35,330 171 1,039 289 Administrative Expenses 1,694 1,077 -- -- -- ----------- ----------- ----------- ----------- ----------- 65,551 36,407 171 1,039 289 Transfers: Transfers Between Plans -- -- -- -- -- Transfers Between Funds -- (48,299) 6,349 8,568 10,270 Loan Transfers To or From Plan -- 1 -- (1) -- Loans to Participants -- (45,793) (153) (1,258) (413) Loan Repayments: Principal -- 16,441 133 671 312 Interest -- 3,923 25 140 63 ----------- ----------- ----------- ----------- ----------- -- (73,727) 6,354 8,120 10,232 ----------- ----------- ----------- ----------- ----------- Increase (Decrease) in Assets During Year 258,992 (2,819) 7,372 15,886 12,746 Net Assets at Beginning of Year 1,366,371 670,217 -- 19,172 -- ----------- ----------- ----------- ----------- ----------- Net Assets at End of Year $ 1,625,363 $ 667,398 $ 7,372 $ 35,058 $ 12,746 =========== =========== =========== =========== =========== (Dollars in Thousands) For the Year Ended December 31, 1996 ------------------------------------------------------------------------------------------ Fund Information ----------------------------------------------------------------------------------------- S&P 500 Large Small International Equity Capitalization Capitalization Stock Company Index Equity Equity Equity Stock Loan Fund Fund Fund Fund Fund Fund ----------- ----------- ----------- ----------- ----------- ----------- Increase in Assets: Contributions: Employer $ -- $ -- $ -- $ -- $ 37,633 $ -- Employee 30,665 2,793 3,231 1,574 -- -- ----------- ----------- ----------- ----------- ----------- ----------- 30,665 2,793 3,231 1,574 37,633 -- Interest and Dividend Income 448 25 182 434 9,806 5,917 Net Appreciation (Depreciation) in Fair Market Value of Assets 49,982 1,726 5,074 1,371 53,570 -- ----------- ----------- ----------- ----------- ----------- ----------- 50,430 1,751 5,256 1,805 63,376 5,917 Decrease in Assets: Benefits Paid to Participants or Their Beneficiaries 7,217 284 487 230 18,810 -- Administrative Expenses 389 -- -- -- 228 -- ----------- ----------- ----------- ----------- ----------- ----------- 7,606 284 487 230 19,038 -- Transfers: Transfers Between Plans -- -- -- -- -- -- Transfers Between Funds 9,530 21,622 38,117 13,943 (60,100) -- Loan Transfers To or From Plan (1) 1 -- -- -- -- Loans to Participants (15,397) (977) (1,161) (350) -- 65,502 Loan Repayments: Principal 6,001 589 633 247 -- (25,027) Interest 1,359 115 125 46 -- (5,796) ----------- ----------- ----------- ----------- ----------- ----------- 1,492 21,350 37,714 13,886 (60,100) 34,679 ----------- ----------- ----------- ----------- ----------- ----------- Increase (Decrease) in Assets During Year 74,981 25,610 45,714 17,035 21,871 40,596 Net Assets at Beginning of Year 214,919 -- -- -- 421,485 40,578 ----------- ----------- ----------- ----------- ----------- ----------- Net Assets at End of Year $ 289,900 $ 25,610 $ 45,714 $ 17,035 $ 443,356 $ 81,174 =========== =========== =========== =========== =========== ===========
13 17 THE GOODYEAR TIRE & RUBBER COMPANY ---------------------------------- MASTER TRUST ------------ STATEMENT OF CHANGES IN NET ASSETS, WITH FUND INFORMATION ---------------------------------------------------------
(Dollars in Thousands) For the Year Ended December 31, 1995 ------------------------------------------------------------------------------- Fund Information ------------------------------------------------------------------------------- Company Fixed Stock Stock Interest Equity Balanced Loan Total Fund Fund Fund Fund Fund ---------- ---------- ---------- ---------- ---------- ---------- Increase in Assets: Contributions: Employer $ 37,870 $ 37,537 $ 333 $ -- $ -- $ -- Employee 112,285 -- 78,683 29,646 3,956 -- ---------- ---------- ---------- ---------- ---------- ---------- 150,155 37,537 79,016 29,646 3,956 -- Interest and Dividend Income 53,593 8,556 42,610 239 104 2,084 Net Appreciation in Fair Market Value of Assets 160,228 102,944 130 53,965 3,189 -- ---------- ---------- ---------- ---------- ---------- ---------- 213,821 111,500 42,740 54,204 3,293 2,084 Decrease in Assets: Benefits Paid to Participants or Their Beneficiaries 52,215 14,330 31,014 5,487 422 962 Administrative Expenses 73 -- -- -- 73 -- ---------- ---------- ---------- ---------- ---------- ---------- 52,288 14,330 31,014 5,487 495 962 Transfers: Transfers Between Plans 1 2 (42) 42 -- (1) Transfers Between Funds -- -- (2,867) 3,190 (323) -- Transfers To or From Plan -- -- 294 (145) (149) -- Loans to Participants -- -- (17,337) (4,489) (274) 22,100 Loan Repayments: Principal -- -- 13,110 4,138 356 (17,604) Interest -- -- 1,690 510 45 (2,245) ---------- ---------- ---------- ---------- ---------- ---------- 1 2 (5,152) 3,246 (345) 2,250 ---------- ---------- ---------- ---------- ---------- ---------- Increase (Decrease) in Assets During Year 311,689 134,709 85,590 81,609 6,409 3,372 Net Assets at Beginning of Year 1,054,682 286,777 584,627 133,309 12,763 37,206 ---------- ---------- ---------- ---------- ---------- ---------- Net Assets at End of Year $1,366,371 $ 421,486 $ 670,217 $ 214,918 $ 19,172 $ 40,578 ========== ========== ========== ========== ========== ==========
14 EX-23 2 EXHIBIT 23 1 EXHIBIT 23 CONSENT OF INDEPENDENT ACCOUNTANTS We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 (No. 33-65181) of The Goodyear Tire & Rubber Company of our report dated June 25, 1997 appearing at page 2 of Annex A of this Form 11-K. /s/ Price Waterhouse LLP PRICE WATERHOUSE LLP Cleveland, Ohio June 26, 1997 -----END PRIVACY-ENHANCED MESSAGE-----