SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 11-K [ X ] ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED] For the fiscal year ended December 31, 1994 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] For the transition period from ........... to .............. Commission file number 1-4982 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: PARKER-HANNIFIN CORPORATION 17325 EUCLID AVENUE CLEVELAND, OHIO 44112 THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN INDEX OF FINANCIAL STATEMENTS PAGE Report of Independent Accountants F-1 Financial Statements: Statements of Financial Condition at December 31, 1994 and 1993 F-2 Statements of Income and Changes in Plan Equity for the years ended December 31, 1994 and 1993 F-2 Notes to Financial Statements F-3 to F-16 Coopers Coopers & Lybrand L.L.P. &Lybrand a professional services firm REPORT OF INDEPENDENT ACCOUNTANTS To the Shareholders and Board of Directors Parker Hannifin Corporation We have audited the accompanying statements of financial condition of the Parker-Hannifin Employees' Savings Plus Stock Ownership Plan as of December 31, 1994 and 1993, and the related statements of income and changes in plan equity for the years then ended. 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 in accordance with generally accepted auditing standards. Those standards 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. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial condition of the Parker-Hannifin Employees' Savings Plus Stock Ownership Plan as of December 31, 1994 and 1993, and the results of its operations and changes in its plan equity for the years then ended, in conformity with generally accepted accounting principles. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule listed in the accompanying index is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedule 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. Cleveland, Ohio June 26, 1995 F-1 THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN STATEMENTS OF FINANCIAL CONDITION CONSOLIDATED - ------------ December 31, 1994 December 31, 1993 ----------------- ----------------- Assets Investments at market value (Notes 1 & 4) $ 305,176,374 $ 296,425,483 Participant loans receivable 14,659,980 Certus Blended Pool (Note 1) 158,629,321 128,948,016 Contributions receivable 895,147 977,092 Investment income receivable 1,049,790 1,014,458 Security sales receivable 34,920 Other receivables 33,610 33,610 Total assets $ 480,479,142 $ 427,398,659 Liabilities & Plan Equity Dividends payable to participants (Note 5) $ 2,394,461 $ 2,042,676 Security purchases payable 791,787 87,863 Notes payable (Note 3) 19,733,000 31,367,000 Total liabilities 22,919,248 33,497,539 Plan equity 457,559,894 393,901,120 Total liabilities & plan equity $ 480,479,142 $ 427,398,659 STATEMENTS OF INCOME AND CHANGES IN PLAN EQUITY Year ended Year ended December 31, 1994 December 31, 1993 ----------------- ----------------- Contributions (Notes 1 & 2): Employees' payroll deductions $ 32,662,751 $ 30,106,738 Lump-sum contributions 256,483 60,922 Transfers from other plans (Note 2) 364,557 2,181,388 Total employees' contributions and transfers 33,283,791 32,349,048 Employer's contributions 16,341,467 15,417,456 Interest income 12,399,247 14,871,923 Dividend income - net 1,878,701 2,187,877 Net appreciation in the fair value of investments (Notes 1 & 4) 32,983,650 41,029,364 Withdrawals and terminations (30,278,307) (29,069,292) Interest expense (Note 3) (2,399,541) (3,307,612) Trustee fees and expenses (550,234) (430,723) Increase in plan equity 63,658,774 73,048,041 Beginning plan equity 393,901,120 320,853,079 Ending plan equity $ 457,559,894 $ 393,901,120 The accompanying notes are an integral part of the financial statements. F-2 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INVESTMENT VALUATION The investments in Parker-Hannifin Corporation (the Company) common shares, non-convertible corporate bonds, U.S. Government bonds, Key Trust Employee Benefits Value Equity Fund and the Key Trust Employee Benefits Fixed Income Fund are valued as of the last reported trade price on the last business day of the period. The Parker-Hannifin Employees' Savings Plus Stock Ownership Plan (the Plan) presents in the Statement of Income and Changes in Plan Equity the net appreciation (depreciation) in the fair value of its investments which consists of the realized gains or losses from the sale of investments and the unrealized appreciation (depreciation) on investments held by the Plan. Investments in contracts issued by Certus and the Key Trust Employee Benefits Money Market Fund are valued at market, which approximates cost. Management believes that the Plan's investments are well diversified and do not create a significant concentration of credit risk. Participants assume all risk in connection with any decrease in the market price of any securities in all the Funds. Although the annual rates of return with respect to the contracts held in the Contract Income Fund are with major insurance and bank companies, the Company does not make any representations as to the financial capability of such companies or their ability to make payments under the contracts. CONTRIBUTIONS Contributions from employees and the Company are recorded in the period that payroll deductions are made from Plan participants. Company contributions are invested solely in the ESOP Fund. OTHER Purchases of securities are recorded on a trade-date basis. Dividend income is recorded on the ex-dividend date. Interest and other income are recorded as earned on the accrual basis. Costs incident to the purchase and sale of securities, such as brokerage commissions and stock transfer taxes, as well as investment advisory fees, are charged to the Funds to which they relate and netted against interest income. All other costs and expenses incurred in administering the Plan, including fees of the Trustee, are paid out of the Plan's assets, unless the Company elects to pay such costs. Effective January 1, 1994 the Company added a loan provision to the Plan. This allows an active participant to borrow a minimum of $500 and up to a maximum of a) 50% of their account balance or b) $50,000 minus the largest outstanding loan balance they had in the last 12 months, whichever is less. The loan must be repaid, with interest equal to the prime rate at the time the loan is entered into plus 1%, over a period from 1 year to 4 1/2 years for a general purpose loan and up to ten years for a residential loan. Once a loan is paid off, a participant must wait a full 3 months before applying for another loan. RECLASSIFICATIONS Certain items in the prior year financial statements have been reclassified to conform to the current year presentation. F-3 NOTES TO FINANCIAL STATEMENTS (contd) 2. CONTRIBUTIONS AND TRANSFERS PARTICIPANT PAYROLL DEDUCTION CONTRIBUTIONS A participant may elect to contribute, through payroll deductions, not less that 1% nor more than 15% of his total compensation for a Plan year and may change such percentage as of January 1, April 1, July 1, or October 1 of any year. The amount which a highly compensated employee may contribute may be limited in order to comply with IRC sections 401(k) and 401(m). A participant may suspend his contributions at any time, but upon suspension is not permitted to resume contributions until the January 1, April 1, July 1, or October 1 next following the completion of a six-month period commencing on the date of such suspension. Upon enrollment or re- enrollment, each participant stipulates his contributions to be invested in accordance with the following investment options: (a) 25% or 50% in the Company Stock Fund. The Company Stock Fund is invested by the Trustee primarily in Common Shares of the Company purchased on the open market. (b) 25%, 50%, 75% or 100% in the Fixed Income Fund. The Fixed Income Fund is invested by and at the discretion of the Trustee in Treasury bills, bonds, preferred stocks, or other fixed income instruments of issuers other than the Company. (c) 25%, 50%, 75% or 100% in the Equity Fund. The Equity Fund is invested by and at the discretion of the Trustee in common stock and other securities convertible into common stock of issuers other than the Company. (d) 25%, 50%, 75% or 100% in the Contract Income Fund. Investments in the Contract Income Fund are invested and managed by Certus Financial Corporation and invested in a pool of assets consisting primarily of contracts providing for a contracted rate of return; the pool will provide a blended rate of return from all the assets in the pool. (e) 25%, 50%, 75% or 100% in the Balanced Fund. The Balanced Fund is invested by and at the discretion of the Trustee primarily in bonds, convertible securities, money market investments, and common stocks of issuers other than the Company. PARTICIPANT LUMP-SUM CONTRIBUTIONS Each year a participant may elect to make an annual voluntary lump-sum contribution as of December 31, providing he is actively contributing to the Plan. The amount of any lump-sum contribution, when added to a participant's payroll deduction contributions during the plan year, may not exceed an amount equal to 15% of his total compensation for the year. The highly compensated employees may be prohibited from making such contributions. A participant's voluntary lump-sum contribution may be invested in the same manner as payroll deduction contributions except that 25%, 50%, 75% or 100% of such contribution may be invested in the Company Stock Fund. TRANSFER OF PROFIT-SHARING ACCOUNT BALANCES A participant who has a Profit-Sharing account balance under the Retirement Plan may make an irrevocable election to have his entire account balance transferred to the Plan. The account balance may be transferred as of January 1, April 1, July 1 or October 1 and may only be invested in the Contract Income Fund under the Plan. TRANSFERS FROM OTHER PLANS As a result of acquisitions, $364,557 in 1994 and $2,181,388 in 1993, was transferred into the Plan from the account balances of the LDI Pneutronics and the TRW Stock Savings Plan, respectively. F-4 NOTES TO FINANCIAL STATEMENTS (contd) TRANSFERS AMONG SAVINGS PLAN FUNDS As of any January 1, April 1, July 1, or October 1, any participant may elect to transfer, in 25% increments, his account balances attributable to his contributions invested in the Company Stock Fund, the Equity Fund, the Fixed Income Fund, the Balanced Fund, or funds invested in the Contract Income Fund after January 1, 1990, to one or more of the other Funds (except transfers from the Contract Income Fund to the Fixed Income Fund may only occur as of any January 1). A participant age 55 or older, with 10 or more years of participation in the Plan, may transfer a portion of the shares of stock in the ESOP Fund to any of the investment funds within the Plan. A transfer may be made as of any April 1, July 1, October 1, and January 1. Only one transfer is permitted during any twelve-month period. PARKER-HANNIFIN CORPORATION CONTRIBUTIONS The Company makes monthly contributions equal to 100% of each participant's deferred compensation (before-tax) contributions attributable to the first 3% of his total compensation for a Plan year, plus 25% of his contributions in excess of 3%, but not in excess of 5%, of his total compensation for such year. In the event the participant makes only regular compensation (after-tax) contributions, the Company matches the first 1% contributed at 50%, and the excess, up to a total of 5% of the participant's total compensation, at 25%. The Company's matching contributions will be made only with respect to participant contributions relating to the first 5% of the participant's total compensation and Company contributions will match the before-tax contributions prior to the after-tax contributions. With regards to lump-sum contributions, the Company matches only participant contributions which, when added to payroll deduction contributions for such Plan year, do not exceed 5% of his total compensation for such year. Company contributions are invested solely in the ESOP Fund. PLAN PARTICIPANTS The number of active participants in each fund at December 31, 1994 and 1993 are as follows: 1994 1993 ----- ----- Company Stock Fund 4,046 3,807 Fixed Income Fund 3,307 3,265 Equity Fund 6,591 6,070 Contract Income Fund 7,717 8,247 Balanced Fund 3,311 2,911 The total number of participants in the Plan is less than the sum of the number of participants shown above because many were participating in more than one fund. 3. ESOP FUND NOTES PAYABLE During May and June of 1989, the ESOP Fund borrowed $70 million to purchase 2.5 million shares of the Company's common stock on the open market. Commencing July 1, 1989 and continuing over the period of the loan, the shares purchased by the ESOP Fund will be allocated to participants making contributions to the Plan (see Note 2). The ESOP Fund uses Company contributions and cash dividends received on unallocated shares to repay the loan plus interest (8.41% per annum for 1994 and 1993). Graduated principal payments and related interest are due semiannually, commencing December 31, 1989 and ending on June 30, 1996. The loan is guaranteed by the Company. Principal amounts payable in the years ending December 31, 1995 and 1996 are $12,838,000 and $6,895,000 respectively. F-5 NOTES TO FINANCIAL STATEMENTS (contd) 4. INVESTMENTS
Investments held by the Plan at December 31, 1994 and 1993 are summarized as follows: December 31, 1994 December 31, 1993 Market Value Cost Market Value Cost ------------ ---------- ------------ ---------- Company Stock Fund - ------------------ Key Trust Employee Benefits Money Market Fund $ 745,563 $ 745,563 $ 447,554 $ 447,554 Parker-Hannifin Common Shares* 46,160,736 25,515,852 41,782,571 27,414,874 Total 46,906,299 26,261,415 42,230,125 27,862,428 Fixed Income Fund - ----------------- Key Trust Employee Benefits Money Market Fund 4,058,714 4,058,714 296,226 296,226 U.S. Government Securities** 12,017,627 12,997,776 15,984,440 15,889,651 Non-Convertible Corporate Bonds** 4,104,953 4,287,354 3,101,448 3,042,904 Total 20,181,294 21,343,844 19,382,114 19,228,781 Equity Fund - ----------- Key Trust Employee Benefits Money Market Fund 346,502 346,502 118,831 118,831 Key Trust Employee Benefits Value Equity Fund 60,988,910 41,853,579 54,673,788 35,360,976 Total 61,335,412 42,200,081 54,792,619 35,479,807 Contract Income Fund - -------------------- Key Trust Employee Benefits Money Market Fund 6,179,884 6,179,884 36,740,678 36,740,678 Total 6,179,884 6,179,884 36,740,678 36,740,678 Balanced Fund - ------------- Key Trust Employee Benefits Money Market Fund 158,512 158,512 39,786 39,786 Key Trust Employee Benefits Value Equity Fund 13,318,526 13,002,686 10,391,768 10,325,023 Key Trust Employee Benefits Fixed Income Fund 8,502,034 8,653,229 6,890,042 6,883,342 Total 21,979,072 21,814,427 17,321,596 17,248,151 ESOP Fund - --------- Key Trust Employee Benefits Money Market Fund 3,742,100 3,742,100 2,782,895 2,782,895 Parker-Hannifin Common Shares* Allocated 118,470,639 71,721,711 87,481,359 63,147,356 Unallocated 26,381,674 17,668,734 35,694,097 27,926,092 Total 148,594,413 93,132,545 125,958,351 93,856,343 Total Investments $ 305,176,374 $ 210,932,196 $ 296,425,483 $ 230,416,188 Contract Income Fund - -------------------- Certus Blended Pool $ 158,629,321 $ 158,629,321 $ 128,948,016 $ 129,207,999 * The number of Parker-Hannifin common shares held by the Plan were 4,210,904 at December 31, 1994 and 4,385,195 at December 31, 1993. **The principal amounts of the U.S. Government Securities, Non-Convertible Corporate Bonds and Corporate Debt held by the Plan were $16,973,720 at December 31, 1994 and $18,480,088 at December 31, 1993.
F-6 NOTES TO FINANCIAL STATEMENTS (contd)
The net realized gain (loss) on disposition of investments included in the Plan equity is as follows: Company Fixed Contract Stock Income Equity Income Balanced ESOP Fund Fund Fund Fund Fund Fund Total ------------ ----------- ------------ ------------- ----------- ------------ ------------ Year Ended December 31, 1994 - ---------------------------- Selling price $ 12,085,110 $ 9,569,472 $ 15,110,956 $ 75,448,242 $ 7,202,794 $ 28,778,421 $148,194,995 Cost* 10,239,542 9,665,838 13,809,017 75,443,070 7,203,931 27,344,813 143,706,211 Realized gain (loss) $ 1,845,568 $ (96,366) $ 1,301,939 $ 5,172 $ (1,137) $ 1,433,608 $ 4,488,784 Year Ended December 31, 1993 - ---------------------------- Selling price $ 4,982,930 $30,005,469 $ 10,309,037 $ 161,756,404 $38,048,862 $ 22,059,377 $267,162,079 Cost* 5,009,098 29,176,363 9,428,989 162,922,432 36,675,824 21,776,038 264,988,744 Realized gain (loss) $ (26,168) $ 829,106 $ 880,048 $ (1,166,028) $ 1,373,038 $ 283,339 $ 2,173,335 The net unrealized appreciation (depreciation) of investments included in the Plan equity is as follows: Company Fixed Contract Stock Income Equity Income Balanced ESOP Fund Fund Fund Fund Fund Fund Total ------------ ----------- ------------ ------------- ----------- ------------ ------------ Balance at December 31, 1992 $ 5,439,004 $ 822,763 $ 14,475,680 $ (31,444) $ 490,572 $ 5,696,708 $ 26,893,283 Change for the fiscal period 8,928,693 (669,430) 4,837,132 (228,539) (417,127) 26,405,300 38,856,029 Balance at December 31, 1993 14,367,697 153,333 19,312,812 (259,983) 73,445 32,102,008 65,749,312 Change for the fiscal period 6,277,187 (1,315,883) (177,481) 259,983 91,200 23,359,860 28,494,866 Balance at December 31, 1994 $ 20,644,884 $(1,162,550) $ 19,135,331 $ - $ 164,645 $ 55,461,868 $ 94,244,178 *Cost of securities sold is determined on an average historical cost basis.
F-7 NOTES TO FINANCIAL STATEMENTS (contd) 5. VESTING, WITHDRAWALS AND DISTRIBUTIONS A participant's interest in the Plan attributable to his own contributions and Company contributions is fully vested at all times. A participant may withdraw in cash a portion of his contributions, subject to certain limitations and restrictions. After a participant terminates employment for any reason, all amounts in his separate accounts are distributed to him or, if he is deceased, to his designated beneficiary. If his interest exceeds $3,500, he may defer his distribution up to his attainment of age 70 1/2. Distribution is either in a single payment or in quarterly installments or, if married, a 50% joint and survivor annuity or, if single, a straight life annuity. Amounts held in the Company Stock Fund and ESOP Fund are distributed in the form of Common Shares or if the participant so elects, in the form of cash. Amounts held in the Fixed Income, Equity, Contract Income or Balanced Funds are distributed in the form of cash. Dividends received by the ESOP Fund with respect to allocated Company shares are paid to participants subsequent to the end of each plan year. 6. TAX STATUS The United States Treasury Department advised on December 5, 1989, that the Plan, as restated as of January 1, 1989, constitutes a qualified trust under Section 401(a) of the Internal Revenue Code and is therefore exempt from federal income taxes under provisions of Section 501(a). Contributions matched by the Company and all earnings are not taxable until distributed to the participants. Participants are allowed to make deferred compensation contributions to the Plan in amounts up to 10% of their total compensation but not to exceed $9,240 in 1994 and $8,994 in 1993 (adjusted annually for cost-of-living increases), as mandated by the Tax Reform Act of 1986. Such contributions are made in accordance with a salary reduction arrangement under Section 401(k) of the Internal Revenue Code of 1986, as amended, and are treated for federal income tax purposes as Company contributions. Contributions by the highly compensated employees are limited by testing in accordance with said section 401(k). 7. PLAN TERMINATION The Company, by action of its Board of Directors, without further approval by the shareholders, has the right to amend, modify, suspend, or terminate the Plan in its entirety, or as to any subsidiary or operating location. No amendment, modification, suspension, or termination shall provide that assets held in trust by the Trustee may be used for or diverted to purposes other than for the exclusive benefit of participants or their beneficiaries. If the Plan is terminated, the Company contributions credited to each affected participant shall continue to be fully vested. 8. ACCOUNTING CHANGES The American Institute of Certified Public Accountants Audit and Accounting Guide for Audits of Employee Benefits Plans, with conforming changes as of May 1, 1993, no longer allows amounts allocated to accounts of persons who have elected to withdraw from the Plan but have not yet been paid as of the Plan's year end to be reflected as Plan liabilities in the Statements of Financial Condition. The cumulative effect of such change was immaterial to the 1993 financial statements. F-8 NOTES TO FINANCIAL STATEMENTS (contd) 8. ACCOUNTING CHANGES (contd) The amounts, by fund, that would have been reflected as benefits payable at December 31, 1993 are as follows: 1993 ----------- Company Stock $ 116,270 Fixed Income 81,940 Equity 84,425 Contract Income 500,006 Balanced 23,308 ESOP 269,884 Total $ 1,075,833 9. RECONCILIATION WITH FORM 5500 The Department of Labor requires that amounts owed to withdrawing but unpaid former participants be classified as a plan liability on Form 5500, while these amounts are not reported as a liability in the Statements of Financial Condition. As a result, the following reconciliations were prepared: 1994 1993 ------------- ------------- Plan Equity per Form 5500 $ 455,848,656 $ 392,825,287 Distributions payable that are allocated but unpaid to former participants 1,711,238 1,075,833 Plan Equity per financial statements $ 457,559,894 $ 393,901,120 Distributions to former participants per Form 5500 $ 30,913,712 $ 30,145,125 Distributions payable that are allocated but unpaid to former participants (1,711,238) (1,075,833) Prior year distributions payable that were paid to former participants in the current year 1,075,833 - Distributions to former participants per financial statements $ 30,278,307 $ 29,069,292 10. ASSET ALLOCATION As described in Note 2, the participants may elect to invest their contributions in five investment funds and Company contributions are invested in the ESOP Fund. The allocation of assets, liabilities, income and changes in plan equity, among the funds follows on pages F-10 through F-16. F-9 THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN STATEMENTS OF FINANCIAL CONDITION COMPANY STOCK FUND - ------------------ December 31, 1994 December 31, 1993 ----------------- ----------------- Assets Investments at market value $ 46,906,299 $ 42,230,125 Contributions receivable 70,584 44,799 Investment income receivable 3,366 1,482 Other receivables 3,251 3,251 Total assets $ 46,983,500 $ 42,279,657 Liabilities & Fund Equity Security purchases payable $ 359,674 $ Total liabilities 359,674 Fund equity 46,623,826 42,279,657 Total liabilities & fund equity $ 46,983,500 $ 42,279,657 STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY Year ended Year ended December 31, 1994 December 31, 1993 ----------------- ----------------- Contributions: Employees' payroll deductions $ 3,658,367 $ 3,439,537 Lump-sum contributions 43,873 7,201 Transfers from other plans 26,115 201,450 Total employees' contributions 3,728,355 3,648,188 and transfers Transfers from other Savings Plan Funds 760,170 79,538 Interest income 23,394 11,639 Dividend income 1,065,064 1,064,212 Net appreciation in the fair value of investments 8,122,755 8,902,525 Withdrawals and terminations (2,957,562) (2,521,494) Trustee fees and expenses (23,419) (19,675) Transfers to other Savings Plan Funds (6,374,588) (1,155,203) Increase in fund equity 4,344,169 10,009,730 Beginning fund equity 42,279,657 32,269,927 Ending fund equity $ 46,623,826 $ 42,279,657 F-10 THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN STATEMENTS OF FINANCIAL CONDITION FIXED INCOME FUND - ----------------- December 31, 1994 December 31, 1993 ----------------- ----------------- Assets Investments at market value $ 20,181,294 $ 19,382,114 Contributions receivable 75,837 118,331 Investment income receivable 312,876 316,714 Other receivables 30,359 30,359 Total assets $ 20,600,366 $ 19,847,518 Liabilities & Fund Equity Fund equity $ 20,600,366 $ 19,847,518 Total liabilities & fund equity $ 20,600,366 $ 19,847,518 STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY Year ended Year ended December 31, 1994 December 31, 1993 ----------------- ----------------- Contributions: Employees' payroll deductions $ 3,262,850 $ 3,070,761 Lump-sum contributions 17,861 6,380 Transfers from other plans 47,877 595,715 Total employees' contributions and transfers 3,328,588 3,672,856 Transfers from other Savings Plan Funds 1,028,331 375,317 Interest income 1,221,043 1,071,224 Net (depreciation) appreciation in the fair value of investments (1,412,249) 159,676 Withdrawals and terminations (1,437,396) (1,448,286) Trustee fees and expenses (44,573) (43,191) Transfers to other Savings Plan Funds (1,930,896) (187,559) Increase in fund equity 752,848 3,600,037 Beginning fund equity 19,847,518 16,247,481 Ending fund equity $ 20,600,366 $ 19,847,518 F-11 THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN STATEMENTS OF FINANCIAL CONDITION EQUITY FUND - ----------- December 31, 1994 December 31, 1993 ----------------- ----------------- Assets Investments at market value $ 61,335,412 $ 54,792,619 Contributions receivable 182,699 199,971 Investment income receivable 2,019 137 Total assets $ 61,520,130 $ 54,992,727 Liabilities & Fund Equity Fund equity $ 61,520,130 $ 54,992,727 Total liabilities & fund equity $ 61,520,130 $ 54,992,727 STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY Year ended Year ended December 31, 1994 December 31, 1993 ----------------- ----------------- Contributions: Employees' payroll deductions $ 10,084,086 $ 8,104,632 Lump-sum contributions 35,600 25,677 Transfers from other plans 73,561 253,463 Total employees' contributions and transfers 10,193,247 8,383,772 Transfers from other Savings Plan Funds 3,288,501 1,839,135 Interest income 9,569 1,726 Net appreciation in the fair value of investments 1,124,458 5,717,180 Withdrawals and terminations (3,468,944) (3,437,061) Trustee fees and expenses (177,235) (164,705) Transfers to other Savings Plan Funds (4,442,193) (183,060) Increase in fund equity 6,527,403 12,156,987 Beginning fund equity 54,992,727 42,835,740 Ending fund equity $ 61,520,130 $ 54,992,727 F-12 THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN STATEMENTS OF FINANCIAL CONDITION CONTRACT INCOME FUND - -------------------- December 31, 1994 December 31, 1993 ----------------- ----------------- Assets Investments at market value $ 6,179,884 $ 36,740,678 Certus Blended Pool 158,629,321 128,948,016 Contributions receivable 41,803 25,835 Investment income receivable 681,597 665,433 Security sales receivable 34,920 Total assets $ 165,567,525 $ 166,379,962 Liabilities & Fund Equity Security purchases payable $ 432,113 $ 87,863 Total liabilities 432,113 87,863 Fund equity 165,135,412 166,292,099 Total liabilities & fund equity $ 165,567,525 $ 166,379,962 STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY Year ended Year ended December 31, 1994 December 31, 1993 ----------------- ----------------- Contributions: Employees' payroll deductions $ 10,615,311 $ 11,331,729 Lump-sum contributions 150,708 12,753 Transfers from other plans 194,938 906,519 Total employees' contributions and transfers 10,960,957 12,251,001 Transfers from other Savings Plan Funds 3,945,114 900,064 Interest income 10,353,520 13,622,763 Net appreciation (depreciation) in the fair value of investments 265,155 (1,394,567) Withdrawals and terminations (14,715,938) (17,739,703) Trustee fees and expenses (240,743) (154,139) Transfers to other Savings Plan Funds (11,724,752) (4,951,584) (Decrease) increase in fund equity (1,156,687) 2,533,835 Beginning fund equity 166,292,099 163,758,264 Ending fund equity $ 165,135,412 $ 166,292,099 F-13 THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN STATEMENTS OF FINANCIAL CONDITION BALANCED FUND - ------------- December 31, 1994 December 31, 1993 ----------------- ----------------- Assets Investments at market value $ 21,979,072 $ 17,321,596 Contributions receivable 99,575 190,929 Investment income receivable 1,526 5,698 Total assets $ 22,080,173 $ 17,518,223 Liabilities & Fund Equity Fund equity $ 22,080,173 $ 17,518,223 Total liabilities & fund equity $ 22,080,173 $ 17,518,223 STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY Year ended Year ended December 31, 1994 December 31, 1993 ----------------- ----------------- Contributions: Employees' payroll deductions $ 5,042,137 $ 4,160,079 Lump-sum contributions 8,441 8,911 Transfers from other plans 22,066 224,241 Total employees' contributions and transfers 5,072,644 4,393,231 Transfers from other Savings Plan Funds 2,219,126 3,875,617 Interest income 7,961 7,502 Net appreciation in the fair value of investments 90,063 955,911 Withdrawals and terminations (1,131,326) (349,879) Trustee fees and expenses (64,264) (49,013) Transfers to other plans Transfers to other Savings Plan Funds (1,632,254) (1,278) Increase in fund equity 4,561,950 8,832,091 Beginning fund equity 17,518,223 8,686,132 Ending fund equity $ 22,080,173 $ 17,518,223 F-14 THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN STATEMENTS OF FINANCIAL CONDITION LOAN FUND - --------- December 31, 1994 ----------------- Assets Participant Loans Receivable $ 14,659,980 Total assets $ 14,659,980 Liabilities & Fund Equity Fund equity $ 14,659,980 Total liabilities & fund equity $ 14,659,980 STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY Year ended December 31, 1994 ----------------- Transfers from other Savings Plan Funds $ 17,347,100 Interest income 537,177 Withdrawals and terminations (354,616) Transfers to other Savings Plan Funds (2,869,681) Increase in fund equity 14,659,980 Beginning fund equity - Ending fund equity $ 14,659,980 F-15 THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN STATEMENTS OF FINANCIAL CONDITION ESOP FUND - --------- December 31, 1994 December 31, 1993 ----------------- ----------------- Assets Investments at market value $ 148,594,413 $ 125,958,351 Contributions receivable 424,649 397,227 Investment income receivable 48,406 24,994 Total assets $ 149,067,468 $ 126,380,572 Liabilities & Fund Equity Dividends payable to participants $ 2,394,461 $ 2,042,676 Notes payable 19,733,000 31,367,000 Total liabilities 22,127,461 33,409,676 Fund equity 126,940,007 92,970,896 Total liabilities & fund equity $ 149,067,468 $ 126,380,572 STATEMENTS OF INCOME AND CHANGES IN FUND EQUITY Year ended Year ended December 31, 1994 December 31, 1993 ----------------- ----------------- Contributions: Employer's contributions $ 16,341,467 $ 15,417,456 Transfers from other Savings Plan Funds 1,493,719 331 Interest income 246,583 157,069 Dividend income - net 813,637 1,123,665 Net appreciation in the fair value of investments 24,793,468 26,688,639 Withdrawals and terminations (6,212,525) (3,572,869) Interest expense (2,399,541) (3,307,612) Transfers to other Savings Plan Funds (1,107,697) (591,318) Increase in fund equity 33,969,111 35,915,361 Beginning fund equity 92,970,896 57,055,535 Ending fund equity $ 126,940,007 $ 92,970,896 F-16 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Administrator of the Plan has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. THE PARKER-HANNIFIN EMPLOYEES' SAVINGS PLUS STOCK OWNERSHIP PLAN BY: ______Michael J. Hiemstra______________ Michael J. Hiemstra Vice President-Finance & Administration & Chief Financial Officer June 26, 1995