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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-K
/X/ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED: DECEMBER 31, 1993
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM _____________ TO _____________
COMMISSION FILE NUMBER: 0-16214
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ALBANY INTERNATIONAL CORP.
(Exact name of registrant as specified in its charter)
DELAWARE 14-0462060
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
1373 BROADWAY, ALBANY, NEW YORK 12204
(Address of principal executive (Zip Code)
offices)
Registrant's telephone number, including area code
518-445-2200
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of each exchange on which registered
CLASS A COMMON STOCK NEW YORK STOCK EXCHANGE AND
($0.001 PAR VALUE) PACIFIC STOCK EXCHANGE
Securities registered pursuant to Section 12(g) of the Act:
NONE
(Title of Class)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports,) and (2) has been subject to such
filing requirements for the past 90 days. Yes _X_ No ____
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. /X/
The aggregate market value of Class A Common Stock held on March 8, 1994 by
non-affiliates of the registrant was $509,232,549.
The registrant had 24,249,169 shares of Class A Common Stock and 5,655,251
shares of Class B Common Stock outstanding as of March 8, 1994.
DOCUMENTS INCORPORATED BY REFERENCE PART
Registrant's Annual Report to Shareholders for the year ended December 31, 1993. II
Registrant's Proxy Statement for the Annual Meeting of Shareholders to be held on
May 12, 1994. III
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PART I
ITEM 1. BUSINESS
The Registrant designs, manufactures and markets paper machine clothing for
each section of the paper machine. It is the largest producer of paper machine
clothing in the world. Paper machine clothing consists of large continuous belts
of custom designed and custom manufactured, engineered fabrics that are
installed on paper machines and carry the paper stock through each stage of the
paper production process. Paper machine clothing is a consumable product of
technologically sophisticated design that is made with synthetic monofilament
and fiber materials. The Registrant produces a substantial portion of its
monofilament requirements. The design and material composition of paper machine
clothing can have a considerable effect on the quality of paper products
produced and the efficiency of the paper machines on which it is used. In
addition to paper machine clothing, the Registrant manufactures other engineered
fabrics which include fabrics for the non-woven industry, corrugator belts,
filtration media and rapid roll doors.
Practically all press fabrics are woven tubular or endless from monofilament
yarns. After weaving, the base press fabric goes to a needling operation where a
thick fiber layer, called a batt, is laid on the base just before passing
through the needling machine. The needles are equipped with tiny barbs that grab
batt fibers locking them into the body of the fabric. After needling, the
fabrics are usually washed, and water is removed. The fabric then is heat set,
treatments may be applied, and it is measured and trimmed.
The Registrant's manufacturing process is similar for forming fabrics and
drying fabrics. Monofilament screens are woven on a loom. The fabrics are seamed
to produce an endless loop, and heat stabilized by running them around two large
cylinders under heat and drawn out by tension. After heat setting, the fabrics
are seamed and boxed.
INDUSTRY FACTORS
There are approximately 1,250 paper machines in the United States located in
approximately 490 paper mills. It is estimated that, excluding China, there are
8,100 paper machines in the world and approximately 1,000, mostly very small,
paper machines in China. Demand for paper machine clothing is tied to the volume
of paper production, which in turn reflects economic growth. According to
published data, world production volumes have grown in excess of 4% annually
over the last ten years. The Registrant anticipates continued growth for the
long-term in world paper production. The profitability of the paper machine
clothing business has generally been less cyclical than the profitability of the
papermaking industry. Papermaking capacity utilization does not vary
significantly because in periods of declining demand for paper, paper mills
still operate near capacity but at lower profitability.
Because the paper industry has been characterized by an evolving but
essentially stable manufacturing technology based on the wet forming papermaking
process, which requires a very large capital investment, the Registrant does not
believe that a commercially feasible substitute technology that does not employ
paper machine clothing is likely to be developed and incorporated into the paper
production process by paper manufacturers in the foreseeable future.
Accordingly, the prospects for continued stability of industry demand for paper
machine clothing appear excellent.
Over the last few years, paper manufacturers have generally reduced the
number of suppliers of paper machine clothing per machine position. This trend
has increased opportunities for market leaders to expand their market share.
INTERNATIONAL OPERATIONS
The Registrant maintains wholly-owned manufacturing facilities in Australia,
Brazil, Canada, Finland, France, Germany, Great Britain, Holland, Mexico, Sweden
and the United States. The Registrant has a 50% interest in a partnership in
South Africa which is engaged primarily in the paper machine clothing business
(see Note 1 of Notes to Consolidated Financial Statements).
2
The Registrant's geographically diversified operations allow it to serve the
world's paper markets more efficiently and to provide superior technical service
to its customers. The Registrant benefits from the transfer of research and
development product innovations between geographic regions. The worldwide scope
of the Registrant's manufacturing and marketing efforts also limits the impact
on the Registrant of economic downturns that are limited to a geographic region.
The Registrant's widespread presence subjects it to certain risks, including
controls on foreign exchange and the repatriation of funds. However, the
Registrant has been able to repatriate earnings in excess of working capital
requirements from each of the countries in which it operates without substantial
governmental restrictions and does not foresee any material changes in its
ability to continue to do so in the future. In addition, the Registrant believes
that the risks associated with its operations and locations outside the United
States are those normally associated with doing business in these locations. In
countries in which the Registrant operates that have experienced high inflation
rates, the Registrant frequently reprices its products. This practice has
enabled the Registrant to quickly pass on to its customers most of the increased
costs due to local inflation. Although government imposed price freezes have
occasionally occurred in some of the Registrant's markets, including the United
States, neither controls nor high inflation rates have had a long-term material
adverse impact on the Registrant's operating results.
MARKETING, CUSTOMERS AND BACKLOG
Paper machine clothing is custom designed for each user depending upon the
type, size and speed of the papermaking machine, the machine section, the grade
of paper being produced, and the quality of the pulp stock used. Judgment and
experience are critical in designing the appropriate clothing for each position
on the machine. As a result, the Registrant employs highly skilled sales and
technical service personnel in 21 countries who work directly with paper mill
operating management. The Registrant's technical service van program in the
United States gives its service engineers field access to the measurement and
analysis equipment needed for troubleshooting and application engineering.
Sales, service and technical expenses are major cost components of the
Registrant. The Registrant employs approximately 900 people in the sales and
technical functions combined, many of whom have engineering degrees or paper
mill experience.
The forming and pressing sections of the papermaking process have been
characterized by a greater frequency of technological and design innovations
that improve performance than has the drying section. The Registrant's market
leadership position in forming and pressing fabrics and the 1993 acquisition of
Mount Vernon which produces dryer fabrics, reflects the Registrant's commitment
to technological innovation.
Typically, the Registrant experiences its highest quarterly sales levels in
the fourth quarter of each fiscal year and its lowest levels in the first
quarter. The Registrant believes that this pattern only partially reflects
seasonal shifts in demand for its products but is more directly related to
purchasing policies of the Registrant's customers.
Payment terms granted to customers reflect general competitive practices.
Terms vary with product and competitive conditions, but generally require
payment within 30 to 90 days, depending on the country of operation.
Historically, bad debts have been insignificant. No single customer, or group of
related customers, accounted for more than 5% of the Registrant's sales of paper
machine clothing in any of the past three years. Management does not believe
that the loss of any one customer would have a material adverse effect on the
Registrant's business.
The Registrant's order backlogs at December 31, 1993 and 1992 were
approximately $407 million and $351 million, respectively. Orders recorded at
December 31, 1993 are expected to be invoiced during the next 12 months.
RESEARCH AND DEVELOPMENT
The Registrant invests heavily in research, new product development and
technical analysis to maintain its leadership in the paper machine clothing
industry. The Registrant's expenditures fall
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into two primary categories, research and development and technical
expenditures. Research and development expenses totaled $17.6 million in 1993
and $18.5 million in 1992 and 1991. While most research activity supports
existing products, the Registrant engages in research for new products. New
product research has focused primarily on more sophisticated paper machine
clothing and has resulted in a stream of new products such as DUOTEX-R- and
TRIOTEX-TM- forming fabrics, for which the technology has been licensed to
several competitors, the patented, on-machine-seamed press fabric, long nip
press belts which are essential to water removal in the press section and
Thermonetics-TM- a dryer fabric. Technical expenditures, primarily at the plant
level, totaled $21.4 million in 1993, $22.9 million in 1992, and $23.5 million
in 1991. Technical expenditures are focused on design, quality assurance and
customer support.
Although the Registrant has focused most of its research and development
efforts on paper machine clothing products and design, the Registrant also has
made considerable progress in developing non-paper machine clothing products.
Through its major research facility in Mansfield, Massachusetts, the Registrant
conducts research under contract for the U.S. government and major corporations.
In addition to its Mansfield facility, the Registrant has four other research
and development centers located at manufacturing locations in Halmstad, Sweden;
Selestat, France; Albany, New York; and Menasha, Wisconsin.
The Registrant has developed and is developing proprietary processes for
manufacturing structural and insulation products using polyimide and other
fibers, which have potential applications in aircraft, automotive and other
industries. A number of products that include properties such as thermal
stability, non-flammability, non-melting and low generation of smoke and toxic
gasses at high temperatures are currently being tested.
Another innovative engineered fabric development unrelated to paper machine
clothing is Primaloft, a synthetic down which is believed to have properties
superior to goose down. This product continues to gain acceptance in the
marketplace for cold weather clothing and bedding.
The Registrant holds a number of patents, trademarks and licenses, none of
which are material to the continuation of the Registrant's business. Consistent
with industry practice, the Registrant frequently licenses its patents to
competitors primarily to enhance customer acceptance of the new products. The
revenue from such licenses is less than 1 percent of consolidated net sales.
COMPETITION
While there are more than 50 paper machine clothing suppliers worldwide,
only six major paper machine clothing companies compete on a global basis.
Market shares vary depending on the country and the type of paper machine
clothing produced. In the paper machine clothing market, the Registrant believes
that it has a market share of approximately 26% in the United States and
Canadian markets, taken together, 16% in the rest of the world and approximately
20% in the world overall. Together, the United States and Canada constitute
approximately 38% of the total world market for paper machine clothing.
Competition is intense in all areas of the Registrant's business. While
price competition is, of course, a factor, the primary bases for competition are
the performance characteristics of the Registrant's products, which are
principally technology-driven, and the quality of customer service. The
Registrant, like its competitors, provides diverse services to customers through
its sales and technical service personnel including: (1) consulting on
performance of the paper machine; (2) consulting on paper machine
configurations, both new and rebuilt; (3) selection and custom manufacture of
the appropriate paper machine clothing; and (4) storing fabrics for delivery to
the user.
EMPLOYEES
The Registrant employs 5,286 persons, of whom approximately 75% are engaged
in manufacturing the Registrant's products. Wages and benefits are competitive
with those of other manufacturers in the geographic areas in which the
Registrant's facilities are located. The Registrant considers its relations with
its employees in general to be excellent.
4
EXECUTIVE OFFICERS OF REGISTRANT
The following table sets forth certain information with respect to the
executive officers of the Registrant:
NAME AGE POSITION
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J. Spencer Standish 68 Chairman of the Board and Director
Francis L. McKone 59 President, CEO and Director
Michael C. Nahl 51 Senior Vice President and Chief Financial
Officer
Manfred F. Kincaid 56 Senior Vice President
Thomas H. Richardson 58 Senior Vice President
Frank R. Schmeler 54 Senior Vice President
Charles B. Buchanan 62 Vice President, Secretary and Director
Richard A. Carlstrom 50 Vice President -- Controller
Raymond D. Dufresne 46 Vice President, Treasurer and Assistant
Secretary
William H. Dutt 58 Vice President -- Technical
Hugh A. McGlinchey 54 Vice President -- Information Systems
James W. Sherrer 58 Vice President -- Administration
Thomas H. Hagoort 61 General Counsel
J. SPENCER STANDISH joined the Registrant in 1952. He has served the
Registrant as Chairman of the Board since 1984, Vice Chairman from 1976 to 1984,
Executive Vice President from 1974 to 1976, and Vice President from 1972 to
1974. He has been a Director of the Registrant since 1958. He is a director of
Berkshire Life Insurance Company.
FRANCIS L. MCKONE joined the Registrant in 1964. He has served the
Registrant as Chief Executive Officer since 1993, President since 1984,
Executive Vice President from 1983 to 1984, Group Vice President -- Papermaking
Products Group from 1979 to 1983, and prior to 1979 as a Vice President of the
Registrant and Division President -- Papermaking Products U.S. He has been a
Director of the Registrant since 1983.
MICHAEL C. NAHL joined the Registrant in 1981. He has served the Registrant
as Senior Vice President and Chief Financial Officer since 1983 and prior to
1983 as Group Vice President.
MANFRED F. KINCAID joined the Registrant in 1960. He has served the
Registrant as Senior Vice President since 1983, Vice President -- Papermaking
Products Europe from 1981 to 1983, and prior to 1981 as Vice President and
General Manager of the Appleton Wire Division.
THOMAS H. RICHARDSON joined the Registrant in 1965. He has served the
Registrant since 1993 as Senior Vice President -- International. Prior to 1993,
he served as Vice President and General Manager of Euroscan from 1986 to 1993,
as Senior Vice President -- Canada and Europe from 1983 to 1986, as Senior Vice
President -- International from 1981 to 1983, and prior to 1981 as General
Manager of Albany International Industria e Comercio Ltda. in Brazil.
FRANK R. SCHMELER joined the Registrant in 1964. He has served the
Registrant as Senior Vice President since 1988, as Vice President and General
Manager of the Felt Division from 1984 to 1988, as Division Vice President and
General Manager, Albany International Canada from 1978 to 1984 and as Vice
President of Marketing, Albany International Canada from 1976 to 1978.
5
CHARLES B. BUCHANAN joined the Registrant in 1957. He has served the
Registrant as Vice President and Secretary since 1980 and as Vice President and
Assistant to the President from 1976 to 1980. He has been a Director of the
Registrant since 1969. He is a Director of Fox Valley Corporation and of CMP
Industries, Inc.
RICHARD A. CARLSTROM joined the Registrant in 1972. He has served the
Registrant as Vice President -- Controller since 1993, as Controller since 1980,
as Controller of a U.S. division from 1975 to 1980, and prior to 1975 as
Financial Controller of Albany International Pty. in Australia.
RAYMOND D. DUFRESNE joined the Registrant in 1973. He has served the
Registrant as Vice President -- Treasurer since 1993, as Treasurer since 1985,
as Business Analyst and Assistant Treasurer from 1978 to 1985 and Financial
Manager of Albany International Industria e Comercio Ltda. in Brazil from 1975
to 1977.
WILLIAM H. DUTT joined the Registrant in 1958. He has served the Registrant
since 1983 as Vice President -- Technical, and prior to 1983 he served in
various technical, engineering, and research capacities including Director of
Research and Development and Vice President -- Operations for Albany Felt.
HUGH A. MCGLINCHEY joined the Registrant in 1991. He has served the
Registrant as Vice President -- Information Systems since 1993 and from 1991 to
1993 as Director -- Information Systems. Prior to 1991 he served as Director --
Corporate Information and Communications Systems for Avery Dennison Corporation.
JAMES W. SHERRER, SR. joined the Registrant in 1992. He has served the
Registrant since 1993 as Vice President -- Administration and from 1992 to 1993
as Vice President. Prior to joining the Registrant, he held various technical
and managerial positions with a company in the paper machine clothing business.
THOMAS H. HAGOORT joined the Registrant as General Counsel on January 1,
1991. From 1968 until December 31, 1990 he was a partner in Cleary, Gottlieb,
Steen and Hamilton, an international law firm with headquarters in New York
City, to which he became of counsel on January 1, 1991.
RAW MATERIALS AND INVENTORY
Primary raw materials for the Registrant's products are synthetic fibers,
which are generally available from a number of suppliers. The Registrant,
therefore, is not required to maintain inventories in excess of its current
needs to assure availability. In addition, the Registrant manufactures
monofilament, a basic raw material for all types of paper machine clothing, at
its facility in Homer, New York, which supplies approximately 25% of its
world-wide monofilament requirements. This manufacturing capability assists the
Registrant in its negotiations with monofilament producers for the balance of
its supply requirements, and enhances the ability of the Registrant to develop
proprietary products.
The Registrant believes it is in compliance with all Federal, State and
local provisions which have been enacted or adopted regarding the discharge of
materials into the environment, or otherwise relating to the protection of the
environment, and does not have knowledge of environmental regulations which do
or might have a material effect on future capital expenditures, earnings, or
competitive position.
The Registrant is incorporated under the laws of the State of Delaware and
is the successor to a New York corporation which was originally incorporated in
1895 and which was merged into the Registrant in August 1987 solely for the
purpose of changing the domicile of the corporation. Upon such merger, each
outstanding share of Class B Common Stock of the predecessor New York
corporation was changed into one share of Class B Common Stock of the
Registrant. References to the Registrant that relate to any time prior to the
August 1987 merger should be understood to refer to the predecessor New York
corporation.
6
ITEM 2. PROPERTIES
The Registrant's principal manufacturing facilities are located in the
United States, Canada, Europe, Brazil, Mexico and Australia. The aggregate
square footage of the Registrant's facilities in the United States and Canada is
approximately 2,407,000, of which 2,298,200 square feet are owned and 108,800
square feet are leased. Most of the leased facilities in the United States are
used for the warehousing of finished goods. The Registrant's facilities located
outside the United States and Canada comprise approximately 2,506,000 square
feet, of which 2,255,000 square feet are owned and 251,000 square feet are
leased. The Registrant considers these facilities to be in good condition and
suitable for their purpose. The capacity associated with these facilities is
adequate to meet production levels required and anticipated through 1994. The
Registrant's capital expenditures are expected to approximate $39 million during
1994 in order to meet anticipated sales growth.
The Registrant believes it has modern, efficient production equipment. In
the last five years, it has spent $280 million on new plants and equipment or
upgrading existing facilities, including the completion of, a dryer fabric plant
in Cowansville, Quebec, Canada, new forming fabric plants in Sweden and Holland
and new press fabric plants in Sweden and Finland.
ITEM 3. LEGAL PROCEEDINGS
There are no material pending legal proceedings, other than ordinary routine
litigation incidental to the business.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There were no matters submitted during the fourth quarter of 1993 to a vote
of security holders.
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS
"Stock and Shareholders" and "Quarterly Financial Data" on page 31 of the
Annual Report are incorporated herein by reference.
Restrictions on dividends and other distributions are described in Note 6,
on pages 20 and 21 of the Annual Report. Such description is incorporated herein
by reference.
ITEM 6. SELECTED FINANCIAL DATA
"Ten Year Summary" on page 32 of the Annual Report is incorporated herein by
reference.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
"Review of Operations" on pages 27 to 30 of the Annual Report is
incorporated herein by reference.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The following consolidated financial statements of the Registrant and its
subsidiaries, included on pages 15 to 18 in the Annual Report, are incorporated
herein by reference:
Consolidated Statements of Income and Retained Earnings -- years ended
December 31, 1993, 1992 and 1991
Consolidated Balance Sheets -- December 31, 1993 and 1992
Consolidated Statements of Cash Flows -- years ended December 31, 1993, 1992
and 1991
Notes to Consolidated Financial Statements
Report of Independent Accountants
7
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
a) DIRECTORS. The information set out in the section captioned "Election
of Directors" of the Proxy Statement is incorporated herein by reference.
b) EXECUTIVE OFFICERS OF REGISTRANT. Information about the officers of the
Registrant is set forth in Item 1 above.
ITEM 11. EXECUTIVE COMPENSATION
The information set forth in the sections of the Proxy Statement captioned
"Executive Compensation", "Summary Compensation Table", "Option/SAR Grants in
Last Fiscal Year", "Option/SAR Exercises during 1993 and Year-End Value",
"Pension Plan Table", "Compensation and Stock Option Committee Report on
Executive Compensation" and "Stock Performance Graph" is incorporated herein by
reference.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The information set out in the section captioned "Share Ownership" of the
Proxy Statement is incorporated herein by reference.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
None.
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
a)(1) FINANCIAL STATEMENTS. The consolidated financial statements included
in the Annual Report are incorporated by reference in Item 8.
a)(2) SCHEDULES. The following consolidated financial statement schedules
for each of the three years in the period ended December 31, 1993 are included
pursuant to Item 14(d):
Report of Independent Accountants on Financial Statement Schedules
Schedule V -- Property, plant and equipment
Schedule VI -- Accumulated depreciation and amortization of property,
plant and equipment
Schedule VIII -- Valuation and qualifying accounts
Schedule IX -- Short-term borrowings
a)(3)(b) No reports on Form 8-K were filed during the quarter ended
December 31, 1993.
8
(3) EXHIBITS
3(a) -- Certificate of Incorporation of Registrant. (4)
3(b) -- Bylaws of Registrant. (1)
4(a) -- Article IV of Certificate of Incorporation of Registrant (included in Exhibit
3(a)).
4(b) -- Specimen Stock Certificate for Class A Common Stock. (1)
MENASHA I
10(a)(i) -- Bank Loan Agreement, dated as of September 11, 1981, among the Registrant, the
City of Menasha, Wisconsin, and The Chase Manhattan Bank (National
Association). (1)
10(a)(ii) -- Loan Agreement, dated as of September 11, 1981, between the City of Menasha,
Wisconsin, and the Registrant. (1)
10(a)(iii) -- Guarantee, dated as of September 11, 1981, executed and delivered by the
Registrant to The Chase Manhattan Bank (National Association). (1)
10(a)(iv) -- Amendment Agreement, dated as of August 1, 1983, between the City of Menasha,
Wisconsin, and the Registrant, relating to the Loan Agreement referred to as
Exhibit 10(a)(ii). (1)
10(a)(v) -- Amendment, dated as of August 1, 1983, relating to the Guarantee referred to as
Exhibit 10(a)(iii), between the Registrant and The Chase Manhattan Bank
(National Association). (1)
10(a)(vi) -- Letter Agreement, dated January 27, 1986, among the Registrant, the City of
Menasha, Wisconsin, and The Chase Manhattan Bank (National Association),
further amending the Loan Agreement and the Guarantee referred to,
respectively, as Exhibits 10(a)(ii) and 10(a)(iii). (1)
10(a)(vii) -- Letter Agreement, dated June 19, 1987, among the Registrant, the City of
Menasha, Wisconsin, and The Chase Manhattan Bank (National Association),
further amending the Loan Agreement and the Guarantee referred to,
respectively, as Exhibits 10(a)(ii) and 10(a)(iii). (1)
10(a)(viii) -- Letter Agreement, dated July 10, 1987, among the Registrant, the City of
Menasha, Wisconsin, and The Chase Manhattan Bank (National Association),
further amending the Loan Agreement and the Guarantee referred to,
respectively, as Exhibits 10(a)(ii) and 10(a)(iii). (1)
10(a)(ix) -- Letter Agreement, dated December 7, 1987, among the Registrant, the City of
Menasha, Wisconsin, and The Chase Manhattan Bank (National Association),
further amending the Loan Agreement and the Guarantee referred to,
respectively, as Exhibits 10(a)(ii) and 10(a)(iii). (2)
10(a)(x) -- Letter Agreement, dated May 9, 1990, between the Registrant, the City of
Menasha, Wisconsin, and The Chase Manhattan Bank (National Association),
further amending the Loan Agreement and Guarantee referred to, respectively, as
Exhibits 10(a)(ii) and 10(a)(iii). (8)
PORTLAND I
10(b)(i) -- Bank Loan Agreement, dated as of December 16, 1981, among the Registrant, The
Industrial Development Board of the City of Portland, Tennessee, and The Chase
Manhattan Bank (National Association). (1)
10(b)(ii) -- Loan Agreement, dated as of December 16, 1981, between the Registrant and The
Industrial Development Board of the City of Portland, Tennessee. (1)
10(b)(iii) -- Guarantee, dated as of December 16, 1981, delivered by the Registrant to The
Chase Manhattan Bank (National Association). (1)
9
10(b)(iv) -- Amendment Agreement, dated as of August 1, 1983, between the Registrant and The
Industrial Development Board of the City of Portland, Tennessee, relating to
the Loan Agreement referred to as Exhibit 10(b)(ii). (1)
10(b)(v) -- Amendment, dated as of August 1, 1983, between the Registrant and The Chase
Manhattan Bank (National Association), relating to the Guarantee referred to as
Exhibit 10(b)(iii). (1)
10(b)(vi) -- Letter Agreement, dated January 27, 1986, among the Registrant, The Industrial
Development Board of the City of Portland, Tennessee, and The Chase Manhattan
Bank (National Association), further amending the Loan Agreement and the
Guarantee referred to, respectively, as Exhibits 10(b)(ii) and 10(b)(iii). (1)
10(b)(vii) -- Letter Agreement, dated June 19, 1987, among the Registrant, The Industrial
Development Board of the City of Portland, Tennessee, and The Chase Manhattan
Bank (National Association), further amending the Loan Agreement and the
Guarantee referred to, respectively, as Exhibits 10(b)(ii) and 10(b)(iii). (1)
10(b)(viii) -- Letter Agreement, dated July 10, 1987, among the Registrant, The Industrial
Development Board of Portland, Tennessee, and The Chase Manhattan Bank
(National Association), further amending the Loan Agreement and the Guarantee
referred to, respectively, as Exhibits 10(b)(ii) and 10(b)(iii). (1)
10(b)(ix) -- Letter Agreement, dated December 7, 1987, among the Registrant, The Industrial
Development Board of Portland, Tennessee, and The Chase Manhattan Bank
(National Association), further amending the Loan Agreement and the Guarantee
referred to, respectively, as Exhibits 10(b)(ii) and 10(b)(iii). (2)
10(b)(x) -- Letter Agreement, dated May 9, 1990, between the Registrant, The Industrial
Development Board of the City of Portland, Tennessee, and The Chase Manhattan
Bank (National Association), further amending the Loan Agreement and Guarantee
referred to, respectively, as Exhibits 10(b)(ii) and 10(b)(iii). (8)
PORTLAND II
10(c)(i) -- Bank Loan Agreement, dated as of November 21, 1983, among the Registrant, The
Industrial Development Board of the City of Portland, Tennessee, and Morgan
Guaranty Trust Company of New York. (1)
10(c)(ii) -- Loan Agreement, dated as of November 21, 1983, between the Registrant and the
Industrial Development Board of the City of Portland, Tennessee. (1)
10(c)(iii) -- Contingent Purchase Agreement, dated as of November 21, 1983, between the
Registrant and Morgan Guaranty Trust Company of New York. (1)
10(c)(iv) -- Letter Agreement, dated as of January 27, 1986, among the Registrant, The
Industrial Development Board of the City of Portland, Tennessee, and Morgan
Guaranty Trust Company of New York, amending the Contingent Purchase Agreement
referred to as Exhibit 10(c)(iii). (1)
10(c)(v) -- Letter Agreement, dated as of December 12, 1986, among the Registrant, The
Industrial Development Board of the City of Portland, Tennessee, and Morgan
Guaranty Trust Company of New York, further amending the Contingent Purchase
Agreement referred to as Exhibit 10(c)(iii). (1)
10(c)(vi) -- Letter Agreement, dated April 27, 1990, between the Registrant and Morgan
Guaranty Trust Company of New York, further amending the Contingent Purchase
Agreements referred to, respectively, as Exhibits 10(c)(iii) and 10(d)(iii).
(8)
10
MENASHA II
10(d)(i) -- Bank Loan Agreement, dated as of November 5, 1984, among the Registrant, the
City of Menasha, Wisconsin, and Morgan Guaranty Trust Company of New York. (1)
10(d)(ii) -- Loan Agreement, dated as of November 5, 1984, between the Registrant and the
City of Menasha, Wisconsin. (1)
10(d)(iii) -- Contingent Purchase Agreement, dated as of November 5, 1984, between the
Registrant and Morgan Guaranty Trust Company of New York. (1)
10(d)(iv) -- Letter Agreement, dated as of January 27, 1986, among the Registrant, the City
of Menasha, Wisconsin, and Morgan Guaranty Trust Company of New York, amending
the Contingent Purchase Agreement referred to as Exhibit 10(d)(iii). (1)
10(d)(v) -- Letter Agreement, dated as of December 12, 1986, among the Registrant, the City
of Menasha, Wisconsin, and Morgan Guaranty Trust Company of New York, further
amending the Contingent Purchase Agreement referred to as Exhibit 10(d)(iii).
(1)
PORTLAND III
10(e)(i) -- Bank Loan Agreement, dated as of November 14, 1985, among the Registrant, The
Industrial Development Board of the City of Portland, Tennessee, and Norstar
Bank of Upstate NY. (1)
10(e)(ii) -- Loan Agreement, dated as of November 14, 1985, between the Registrant and The
Industrial Development Board of the City of Portland, Tennessee. (1)
10(e)(iii) -- Contingent Purchase Agreement, dated as of November 14, 1985, between the
Registrant and Norstar Bank of Upstate NY. (1)
10(e)(iv) -- Letter Agreement, dated January 27, 1986, among the Registrant, The Industrial
Development Board of the City of Portland, Tennessee, and Norstar Bank of
Upstate NY, amending the Contingent Purchase Agreement referred to as Exhibit
10(e)(iii). (1)
10(e)(v) -- Letter Agreement, dated December 12, 1986, among the Registrant, The Industrial
Development Board of the City of Portland, Tennessee, and Norstar Bank of
Upstate NY, further amending the Contingent Purchase Agreement referred to as
Exhibit 10(e)(iii). (1)
10(e)(vi) -- Letter Agreement, dated May 10, 1990, between the Registrant and Norstar Bank
of Upstate NY, further amending the Contingent Purchase Agreement referred to
as Exhibit 10(e)(iii). (8)
EAST GREENBUSH
10(f)(i) -- Installment Sale Agreement, dated as of July 1, 1987, between the Registrant
and Rensselaer County Industrial Development Authority. (1)
10(f)(ii) -- Letter of Credit Agreement, dated as of July 1, 1987, between the Registrant
and Norstar Bank of Upstate NY. (1)
10(f)(iii) -- Letter Agreement, undated, between the Registrant and Norstar Bank of Upstate
NY, amending the Letter of Credit Agreement referred to as Exhibit 10(f)(ii).
(2)
10(f)(iv) -- Letter Agreement, dated May 10, 1990, between the Registrant and Norstar Bank
of Upstate NY, further amending the Letter of Credit Agreement referred to as
Exhibit 10(f)(ii). (8)
10(g)(i) -- Loan Agreement, dated April 27, 1989, between the Registrant and New York State
Urban Development Corporation. (6)
11
D.I.A.L. LOAN
10(h)(i) -- Loan Agreement, dated August 31, 1988, between the Registrant and The Chase
Manhattan Bank (National Association). (5)
10(h)(ii) -- Letter Agreement, dated as of February 1, 1991, between the Registrant and
Harris Trust and Savings Bank, amending the Loan Agreement referred to as
Exhibit 10(h)(i). (9)
MORGAN CREDIT AGREEMENT
10(i)(i) -- Credit Agreement, dated as of July 16, 1992, among the Registrant, certain
banks listed therein, and Morgan Guaranty Trust Company of New York, as Agent.
(13)
INTEREST RATE CAP/SWAP AGREEMENTS
10(j)(i) -- Interest Rate Swap agreements, dated August 29, 1990, between the Registrant
and Security Pacific National Bank. (9)
EQUIPMENT LEASES
10(k)(i) -- Equipment Lease Agreement, dated December 29, 1988, between Registrant and
Fleet Credit Corporation. (6)
10(k)(ii) -- Master Lease Agreement, dated August 17, 1987, between Registrant and
BancBoston Leasing. (6)
10(k)(iii) -- Master Lease of Personal Property, dated November 19, 1987, between Registrant
and Security Pacific Equipment Leasing, Inc. (6)
10(k)(iv) -- Master Lease of Personal Property No. 20910, dated August 31, 1989, between the
Registrant and Security Pacific Equipment Leasing, Inc. (7)
PARENT GUARANTEES
10(l)(i) -- Guarantee, dated June 15, 1989, delivered by Registrant to Bank of Montreal
related to Albany International Canada, Inc. (6)
10(l)(ii) -- Guarantee, dated August 10, 1989, delivered by Registrant to National Australia
Bank Limited related to Albany International Pty Ltd. (6)
10(l)(iii) -- Limited Guaranty, dated as of December 5, 1989, delivered by the Registrant to
The First National Bank of Boston, guarantying certain repayment obligations of
six subsidiaries of the Company. (9)
10(l)(iv) -- Corporate Continuing Guaranty, dated August 8, 1990, delivered by the
Registrant to Citicorp and/or Citibank, N.A., guarantying certain repayment
obligations of seven subsidiaries of the Company. (9)
10(l)(v) -- Corporate Continuing Guaranty, dated September 20, 1990, delivered by the
Registrant to Citicorp and/or Citibank, N.A., guarantying certain repayment
obligations of Albany International S.A. De C.V. (9)
12
STOCK OPTIONS
10(m)(i) -- Form of Stock Option Agreement, dated as of August 1, 1983, between the
Registrant and each of five employees, together with schedule showing the names
of such employees and the material differences among the Stock Option
Agreements with such employees. (1)
10(m)(ii) -- Form of Amendment of Stock Option Agreement, dated as of July 1, 1987, between
the Registrant and each of the five employees identified in the schedule
referred to as Exhibit 10(m)(i). (1)
10(m)(iii) -- 1988 Stock Option Plan. (3)
10(m)(iv) -- 1992 Stock Option Plan. (13)
EXECUTIVE COMPENSATION
10(n) -- Pension Equalization Plan adopted April 16, 1986, naming two current executive
officers and one former executive officer of Registrant as "Participants"
thereunder. (1)
10(o)(i) -- Form of Executive Deferred Compensation Plan adopted September 1, 1985, and
Forms of Election Agreement. (1)
10(o)(ii) -- Form of Directors' Deferred Compensation Plan adopted September 1, 1985, and
Form of Election Agreement. (1)
10(o)(iii) -- Executive Deferred Compensation Plan. (3)
10(o)(iv) -- Directors' Deferred Compensation Plan. (3)
OTHER AGREEMENTS
10(p) -- Joint venture agreement, dated as of June 29, 1990, between the Registrant and
Lenzing A.G. (8)
10(q) -- Merchandise Orders Purchase and Sale Agreement, dated as of January 28, 1991,
among the Registrant, CXC Incorporated and Citicorp North America, Inc., as
Agent. (10)
10(q)(i) -- Amendment No. 1 to Merchandise Orders Purchase and Sale Agreement, dated as of
April 26, 1991, among the Registrant, CXC Incorporated and Citicorp North
America, Inc., as Agent, amending the Merchandise Orders Purchase and Sale
Agreement referred to as Exhibit 10(q). (11)
10(r) -- Assets Purchase Agreement, dated as of December 15, 1992, between the
Registrant and Mount Vernon Mills, Inc. (13)
10(s) -- Asset Purchase Agreement, dated as of June 30, 1993, by and among the
Registrant, Albany International Canada Inc. and Albany International Ltd. and
Thermo Fibertek Inc., Thermo Electron (Canada) Inc. and Winterburn Limited.
(14)
10(t) -- Stock Purchase Agreement, dated as of June 30, 1993 between the Registrant and
Thermo Fibertek Inc. (14)
11 -- Statement re Computation of Per-Share Earnings.
13 -- Annual Report to Security Holders for the year ended December 31, 1993.
22 -- Subsidiaries of Registrant.
24 -- Consent of Coopers & Lybrand.
25 -- Powers of Attorney. (12)
13
All other schedules and exhibits are not required or are inapplicable and,
therefore, have been omitted.
(1) Previously filed as an Exhibit to the Company's Registration Statement on
Form S-1, No. 33-16254, as amended, declared effective by the Securities and
Exchange Commission on September 30, 1987, which previously-filed Exhibit is
incorporated by reference herein.
(2) Previously filed as an Exhibit to the Company's Registration Statement on
Form S-1, No. 33-20650, declared effective by the Securities and Exchange
Commission on March 29, 1988, which previously-filed Exhibit is incorporated
by reference herein.
(3) Previously filed as an Exhibit to the Registrant's Current Report on Form
8-K dated August 8, 1988, which previously-filed Exhibit is incorporated by
reference herein.
(4) Previously filed as an Exhibit to the Registrant's Registration Statement on
Form 8-A, File No. 1-10026, declared effective by the Securities and
Exchange Commission on August 26, 1988 (as to The Pacific Stock Exchange,
Inc.), and on September 7, 1988 (as to The New York Stock Exchange, Inc.),
which previously-filed Exhibit is incorporated by reference herein.
(5) Previously filed as an Exhibit to the Registrant's Current Report on Form
8-K dated January 6, 1989, which previously-filed Exhibit is incorporated by
reference herein.
(6) Previously filed as an Exhibit to the Registrant's Registration Statement on
Form S-1, No. 33-30581, declared effective by the Securities and Exchange
Commission on September 26, 1989, which previously-filed Exhibit is
incorporated by reference herein.
(7) Previously filed as an Exhibit to the Registrant's Annual Report on Form
10-K for the fiscal year ended December 31, 1989, which previously-filed
Exhibit is incorporated by reference herein.
(8) Previously filed as an Exhibit to the Registrant's Current Report on Form
8-K dated June 29, 1990, which previously-filed Exhibit is incorporated by
reference herein.
(9) Previously filed as an Exhibit to the Registrant's Current Report on Form
8-K dated February 28, 1991, which previously-filed Exhibit is incorporated
by reference herein.
(10) Previously filed as an Exhibit to the Registrant's Current Report on Form
8-K dated April 8, 1991, which previously-filed Exhibit is incorporated by
reference herein.
(11) Previously filed as an Exhibit to the Registrant's Current Report on Form
8-K dated May 28, 1991, which previously-filed Exhibit is incorporated by
reference herein.
(12) Previously filed as an Exhibit to the Registrant's Quarterly Report on Form
10Q dated November 8, 1991, which previously-filed Exhibit is incorporated
by reference herein.
(13) Previously filed as an Exhibit to the Registrant's Current Report on Form
8-K dated January 18, 1993, which previously-filed Exhibit is incorporated
by reference herein.
(14) Previously filed as an Exhibit to the Registrant's Current Report on Form
8-K dated July 21, 1993, which previously-filed Exhibit is incorporated by
reference herein.
14
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.
SIGNATURE TITLE DATE
- --------------------------------------------------- ---------------------------------------- ------------------
*
---------------------------------------- Chairman of the Board and Director March 22, 1994
(J. Spencer Standish)
*
---------------------------------------- President and Director (Chief Executive March 22, 1994
(Francis L. McKone) Officer)
/s/ MICHAEL C. NAHL Senior Vice President and Chief
---------------------------------------- Financial Officer (Principal Financial March 22, 1994
(Michael C. Nahl) Officer)
*
---------------------------------------- Vice President -- Controller (Principal March 22, 1994
(Richard A. Carlstrom) Accounting Officer)
*
---------------------------------------- Vice President, Secretary and Director March 22, 1994
(Charles B. Buchanan)
*
---------------------------------------- Director March 22, 1994
(Paul Bancroft III)
*
---------------------------------------- Director March 22, 1994
(Thomas R. Beecher, Jr.,)
*
---------------------------------------- Director March 22, 1994
(Stanley I. Landgraf)
*
---------------------------------------- Director March 22, 1994
(Allan Stenshamn)
*
---------------------------------------- Director March 22, 1994
(Barbara P. Wright)
*By /s/ MICHAEL C. NAHL
----------------------------------
Michael C. Nahl
Attorney-in-fact
15
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized on the 22nd day of
March, 1994.
ALBANY INTERNATIONAL CORP.
by ______/s/ MICHAEL C. NAHL_____
Michael C. Nahl
Principal Financial Officer
Senior Vice President
and Chief Financial Officer
16
SCHEDULES
REPORT OF INDEPENDENT ACCOUNTANTS
ON FINANCIAL STATEMENT SCHEDULES
To The Shareholders and Board of Directors
Albany International Corp.
Our report on the consolidated financial statements of Albany International
Corp. has been incorporated by reference in this form 10-K from page 14 of the
1993 Annual Report to Shareholders of Albany International Corp. In connection
with our audits of such financial statements, we have also audited the related
financial statement schedules listed in the index on page 8 of this Form 10-K.
In our opinion, the financial statement schedules referred to above, when
considered in relation to the basic financial statements taken as a whole,
present fairly, in all material respects, the information required to be
included therein.
Albany, New York
January 27, 1994
SCHEDULE V
ALBANY INTERNATIONAL CORP. AND SUBSIDIARIES
PROPERTY, PLANT AND EQUIPMENT
(DOLLARS IN THOUSANDS)
COLUMN B COLUMN F
----------- COLUMN C COLUMN D COLUMN E -----------
COLUMN A BALANCE AT ------------- ----------- --------------- BALANCE AT
- ----------------------------------------- BEGINNING ADDITIONS RETIREMENTS OTHER END OF
DESCRIPTION OF PERIOD AT COST OR SALES CHANGES(A) PERIOD
- ----------------------------------------- ----------- ------------- ----------- --------------- -----------
Year ended December 31, 1993:
Land & Improvements...................... $ 19,304 $ 820 $ 1,168 $ (807) $ 18,149
Buildings................................ 133,168 12,702 6,431 (7,059) 132,380
Machinery & equipment.................... 334,537 52,832 22,317 (24,396) 340,656
----------- ------------- ----------- --------------- -----------
$ 487,009 $ 66,354(B) $ 29,916 $ (32,262) $ 491,185
----------- ------------- ----------- --------------- -----------
----------- ------------- ----------- --------------- -----------
Year ended December 31, 1992:
Land & Improvements...................... $ 19,958 $ 478 $ 118 $ (1,014) $ 19,304
Buildings................................ 140,331 1,487 532 (8,118) 133,168
Machinery & equipment.................... 361,054 19,467 5,499 (40,485) 334,537
----------- ------------- ----------- --------------- -----------
$ 521,343 $ 21,432(C) $ 6,149 $ (49,617)(D) $ 487,009
----------- ------------- ----------- --------------- -----------
----------- ------------- ----------- --------------- -----------
Year ended December 31, 1991:
Land & Improvements...................... $ 16,385 $ 3,527 $ 18 $ 64 $ 19,958
Buildings................................ 149,247 10,725 168 (19,473)(F) 140,331
Machinery & equipment.................... 329,137 27,415 10,725 15,227(F) 361,054
----------- ------------- ----------- --------------- -----------
$ 494,769 $ 41,667(E) $ 10,911 $ (4,182) $ 521,343
----------- ------------- ----------- --------------- -----------
----------- ------------- ----------- --------------- -----------
(A) Other changes represent translation adjustments unless otherwise noted.
(B) Includes assets acquired of $35,413.
(C) Includes assets acquired of $1,212.
(D) Includes assets revalued in accordance with FAS No. 109 of $8,498.
(E) Includes capitalized interest of $1,600.
(F) Includes a reclassification of $19,150 from buildings to machinery &
equipment.
DEPRECIATION ESTIMATED
METHOD USEFUL LIVES
--------------- -------------
Land and Improvements..................... S/L 10
Buildings................................. S/L 25
Machinery and equipment................... S/L 3-10
SCHEDULE VI
ALBANY INTERNATIONAL CORP. AND SUBSIDIARIES
ACCUMULATED DEPRECIATION AND AMORTIZATION
(DOLLARS IN THOUSANDS)
COLUMN B COLUMN C COLUMN F
----------- ----------- COLUMN D COLUMN E -----------
COLUMN A BALANCE AT CHARGED TO ----------- ----------- BALANCE AT
- ------------------------------------------------ BEGINNING COSTS AND RETIREMENTS OTHER END OF
DESCRIPTION OF PERIOD AT COST OR SALES CHANGES(A) PERIOD
- ------------------------------------------------ ----------- ----------- ----------- ----------- -----------
Year ended December 31, 1993:
Land & Improvements............................. $ 1,215 $ 666 $ 329 $ (62) $ 1,490
Buildings....................................... 20,131 5,276 2,261 (1,313) 21,833
Machinery & equipment........................... 157,045 35,344 15,877 (11,479) 165,033
----------- ----------- ----------- ----------- -----------
$ 178,391 $ 41,286 $ 18,467 $ (12,854) $ 188,356
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
Year ended December 31, 1992:
Land & Improvements............................. $ 890 $ 442 $ 8 $ (109) $ 1,215
Buildings....................................... 17,249 5,352 376 (2,094) 20,131
Machinery & equipment........................... 140,748 39,043 4,185 (18,561) 157,045
----------- ----------- ----------- ----------- -----------
$ 158,887 $ 44,837 $ 4,569 $ (20,764) $ 178,391
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
Year ended December 31, 1991:
Land & Improvements............................. $ 510 $ 367 $ 7 $ 20 $ 890
Buildings....................................... 12,392 4,261 131 727 17,249
Machinery & equipment........................... 116,309 35,956 9,552 (1,965) 140,748
----------- ----------- ----------- ----------- -----------
$ 129,211 $ 40,584 $ 9,690 $ (1,218) $ 158,887
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
(A) Other changes represent translation adjustments unless otherwise noted.
SCHEDULE VIII
ALBANY INTERNATIONAL CORP. AND SUBSIDIARIES
VALUATION AND QUALIFYING ACCOUNTS
(DOLLARS IN THOUSANDS)
COLUMN B COLUMN C
----------- ----------- COLUMN E
COLUMN A BALANCE AT ADDITIONS COLUMN D -------------
- ----------------------------------------------------------- BEGINNING CHARGED TO ------------- BALANCE AT
DESCRIPTION OF PERIOD EXPENSE DEDUCTIONS(A) END OF PERIOD
- ----------------------------------------------------------- ----------- ----------- ------------- -------------
Allowance for doubtful accounts
Year ended December 31:
1993................................................... $ 4,800 $ 1,667 $ 1,888 $ 4,579
1992................................................... $ 5,289 $ 1,320 $ 1,809 $ 4,800
1991................................................... $ 5,342 $ 792 $ 845 $ 5,289
(A) Includes accounts written off as uncollectible, recoveries and the effect
of currency exchange rates.
SCHEDULE IX
ALBANY INTERNATIONAL CORP. AND SUBSIDIARIES
SHORT TERM BORROWINGS
YEAR ENDED DECEMBER 31, 1993
(DOLLARS IN THOUSANDS)
COLUMN D COLUMN E COLUMN F
----------- ----------- -------------
COLUMN B COLUMN C MAXIMUM AVERAGE WEIGHTED
----------- --------------- AMOUNT AMOUNT AVERAGE
COLUMN A BALANCE AT WEIGHTED OUTSTANDING OUTSTANDING INTEREST RATE
- ---------------------------------------------- END OF AVERAGE DURING DURING DURING
CATEGORY OF AGGREGATE BORROWINGS YEAR INTEREST RATE THE YEAR THE YEAR(2) THE YEAR(2)
- ---------------------------------------------- ----------- --------------- ----------- ----------- -------------
Notes and loans principally to banks: (1)
1993........................................ $ 8,560 5.85% $ 23,222 $ 14,025 5.71 %
1992........................................ $ 19,003 5.67% $ 19,003 $ 10,728 7.99 %
1991........................................ $ 12,471 9.74% $ 25,107 $ 18,644 9.27 %
(1) Short-term borrowings are generally available in accordance with informal
banking arrangements.
(2) Calculated on the month end balances for each year.