Page
|
||||
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
|
3 | |||
STATEMENT
OF NET ASSETS AVAILABLE FOR BENEFITS
|
4 | |||
At
December 31, 2007 and 2006
|
||||
STATEMENT
OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
|
5 | |||
For
the years ended December 31, 2007 and 2006
|
||||
NOTES
TO FINANCIAL STATEMENTS
|
6 | |||
SUPPLEMENTAL
SCHEDULES
|
||||
Schedule
H, Part IV, Item 4(i) – Assets Held for Investment
Purposes
|
13 | |||
Schedule
H, Part IV, Item 4(j) – Reportable Transactions
|
14 | |||
EXHIBIT
INDEX
|
16 |
December
31,
|
||||||||
2007
|
2006
|
|||||||
ASSETS:
|
||||||||
Investments
(at fair value) (Note 3)
|
$ | 396,636 | $ | 386,988 | ||||
Employee
Loans Receivable (Note 3)
|
4,463 | 3,896 | ||||||
Total
(at fair value)
|
401,099 | 390,884 | ||||||
Contributions
receivable
|
7,180 | 7,531 | ||||||
Total
assets
|
$ | 408,279 | $ | 398,415 | ||||
LIABILITIES:
|
||||||||
Loan
payable (Note 6)
|
18,192 | 28,297 | ||||||
Total
liabilities
|
18,192 | 28,297 | ||||||
Net
assets reflecting all investments at fair value
|
390,087 | 370,118 | ||||||
Adjustment
from fair value to contract value for fully benefit – responsive
investment contract
|
(590 | ) | 727 | |||||
NET ASSETS AVAILABLE FOR
BENEFITS
|
$ | 389,497 | $ | 370,845 |
Year
Ended
December
31,
|
||||||||
2007
|
2006
|
|||||||
ADDITIONS:
|
||||||||
Increase
to net assets attributed to:
|
||||||||
Investment
income
|
||||||||
Net
(depreciation) appreciation in fair value of
investments (Note 3)
|
$ | (17 | ) | $ | 57,719 | |||
Interest
|
3,715 | 3,694 | ||||||
Dividends
|
15,452 | 9,831 | ||||||
Contributions:
|
||||||||
Participants
|
13,874 | 12,869 | ||||||
Employer
|
15,201 | 18,757 | ||||||
Transfers
from other plans
|
9 | 10 | ||||||
Total
Additions
|
48,234 | 102,880 | ||||||
DEDUCTIONS:
|
||||||||
Deductions
from net assets attributed to:
|
||||||||
Benefits
paid to participants
|
27,231 | 46,034 | ||||||
Transfers
to other plans (Note 9)
|
— | 11,139 | ||||||
Administrative
expenses
|
96 | 26 | ||||||
Interest
Expense
|
2,255 | 2,397 | ||||||
Total
Deductions
|
29,582 | 59,596 | ||||||
Net
Increase
|
18,652 | 43,284 | ||||||
NET ASSETS AVAILABLE FOR
BENEFITS:
|
||||||||
Beginning
of year
|
370,845 | 327,561 | ||||||
End
of year
|
$ | 389,497 | $ | 370,845 |
Adjustment
to
|
||||||||||||
Fair
Value
|
Contract
Value
|
Contract
Value
|
||||||||||
December
31, 2007
|
$ | 78,037 | $ | (590 | ) | $ | 77,447 | |||||
December
31, 2006
|
75,523 | 727 | 76,250 |
2007
|
2006
|
|||||||
* Vanguard
500 Index Fund
|
$ | 45,638 | $ | 45,167 | ||||
Vanguard
Explorer Fund
|
9,613 | 10,517 | ||||||
Vanguard
Extended Market Index Fund
|
7,796 | 7,727 | ||||||
* Vanguard
Growth & Income Fund
|
24,331 | 25,551 | ||||||
* Vanguard
International Growth Fund
|
25,940 | 19,708 | ||||||
* Vanguard
PRIMECAP Fund
|
44,263 | 42,351 | ||||||
Vanguard
Small-Cap Value Index Fund
|
9,630 | 12,627 | ||||||
Vanguard
Total Bond Market Index Fund
|
19,133 | 14,392 | ||||||
* Vanguard
Windsor II Fund
|
27,349 | 27,476 | ||||||
* Hercules
Common Stock Fund
|
74,524 | 82,445 | ||||||
* Vanguard
Retirement Savings Trust
|
78,037 | — | ||||||
* Hercules
Blended Interest Fund
|
— | 75,523 | ||||||
Vanguard
Target Retirement 2005 Fund
|
4,021 | 1,628 | ||||||
Vanguard
Target Retirement 2010 Fund
|
224 | — | ||||||
Vanguard
Target Retirement 2015 Fund
|
10,408 | 10,356 | ||||||
Vanguard
Target Retirement 2020 Fund
|
352 | — | ||||||
Vanguard
Target Retirement 2025 Fund
|
9,358 | 7,793 | ||||||
Vanguard
Target Retirement 2030 Fund
|
124 | — | ||||||
Vanguard
Target Retirement 2035 Fund
|
3,058 | 2,426 | ||||||
Vanguard
Target Retirement 2040 Fund
|
89 | — | ||||||
Vanguard
Target Retirement 2045 Fund
|
1,212 | 724 | ||||||
Vanguard
Target Retirement 2050 Fund
|
26 | — | ||||||
Vanguard
Target Retirement Income
|
1,510 | 577 | ||||||
$ | 396,636 | $ | 386,988 | |||||
Employee
Loans Receivable
|
4,463 | 3,896 | ||||||
Total
|
$ | 401,099 | $ | 390,884 | ||||
* Represents
at least 5% of the Plan’s net assets at December 31, 2007 or
2006
|
2007
|
2006
|
|||||||
Hercules
Common Stock
|
$ | 253 | $ | 38,555 | ||||
Mutual
Funds
|
(270 | ) | 19,164 | |||||
Net
appreciation (depreciation) in fair value of investments
|
$ | (17 | ) | $ | 57,719 |
4.
|
Employer
Contributions Received and
Receivable
|
Stock
|
Cash
|
Total
|
||||||||||
December
31, 2007
|
$ | 14,843 | $ | 358 | $ | 15,201 | ||||||
December
31, 2006
|
$ | 18,566 | $ | 191 | $ | 18,757 | ||||||
5.
|
Non-participant-directed
Investments
|
Investments
|
Contributions
Receivable
|
Loan
|
Net
Assets
|
|||||||||||||
December 31,
2007
|
||||||||||||||||
Hercules
Common Stock Fund (participant-directed)
|
$ | 26,660 | $ | 32 | $ | — | $ | 26,692 | ||||||||
26,660 | 32 | — | 26,692 | |||||||||||||
Hercules
ESOP Stock Fund (non-participant-directed)
|
||||||||||||||||
Allocated
|
29,397 | 6,454 | — | 35,851 | ||||||||||||
Unallocated
|
18,467 | — | (18,192 | ) | 275 | |||||||||||
47,864 | 6,454 | (18,192 | ) | 36,126 | ||||||||||||
$ | 74,524 | $ | 6,486 | $ | (18,192 | ) | $ | 62,818 | ||||||||
December 31,
2006
|
||||||||||||||||
Hercules
Common Stock Fund (participant-directed)
|
$ | 30,013 | $ | 33 | $ | — | $ | 30,046 | ||||||||
30,013 | 33 | — | 30,046 | |||||||||||||
Hercules
ESOP Stock Fund (non-participant-directed)
|
||||||||||||||||
Allocated
|
26,454 | 6,817 | — | 33,271 | ||||||||||||
Unallocated
|
25,978 | — | (28,297 | ) | (2,319 | ) | ||||||||||
52,432 | 6,817 | (28,297 | ) | 30,952 | ||||||||||||
$ | 82,445 | $ | 6,850 | $ | (28,297 | ) | $ | 60,998 |
Hercules
Common
|
Hercules
ESOP Stock Fund
|
|||||||||||
Stock
Funds
|
Allocated
|
Unallocated
|
||||||||||
December 31,
2007
|
||||||||||||
Net
appreciation (depreciation) in fair value of investments
|
$ | 203 | $ | (207 | ) | $ | 330 | |||||
Employer
contributions
|
84 | 2,345 | 12,445 | |||||||||
Employee
contributions
|
640 | — | — | |||||||||
Benefit
paid to participants
|
(1,662 | ) | (1,578 | ) | — | |||||||
Interest
expense
|
(10 | ) | — | (2,255 | ) | |||||||
Allocation
of shares under ESOP provisions
|
— | 7,854 | (7,854 | ) | ||||||||
Net
loan activity
|
65 | (197 | ) | — | ||||||||
Transfer
to other investment options
|
(2,674 | ) | (5,709 | ) | — | |||||||
Net
(decrease) increase
|
$ | (3,354 | ) | $ | 2,508 | $ | 2,666 | |||||
December 31,
2006
|
||||||||||||
Net
appreciation in fair value of investments
|
$ | 14,607 | $ | 12,315 | $ | 11,633 | ||||||
Employer
contributions
|
60 | 5,346 | 13,255 | |||||||||
Employee
contributions
|
503 | — | — | |||||||||
Benefit
paid to participants
|
(2,845 | ) | (2,295 | ) | — | |||||||
Interest
expense
|
(4 | ) | — | (2,397 | ) | |||||||
Allocation
of shares under ESOP provisions
|
— | 5,074 | (5,074 | ) | ||||||||
Net
loan activity
|
69 | (131 | ) | — | ||||||||
Transfer
to other investment options
|
(6,521 | ) | (6,664 | ) | — | |||||||
Net
increase
|
$ | 5,869 | $ | 13,645 | $ | 17,417 |
Identity
of Issue
|
Investment
Type
|
Cost/Contract
Value
|
Current/Contract
Value
|
||||||
*Vanguard
500 Index Investment
|
Registered
Investment Company
|
$ | 34,497,653 | $ | 45,637,683 | ||||
*Vanguard
Explorer Fund
|
Registered
Investment Company
|
9,027,479 | 9,613,097 | ||||||
*Vanguard
Extended Market Index Investment
|
Registered
Investment Company
|
6,126,172 | 7,795,405 | ||||||
*Vanguard
Growth & Income Investment
|
Registered
Investment Company
|
21,086,140 | 24,331,183 | ||||||
*Vanguard
International Growth Fund
|
Registered
Investment Company
|
22,098,694 | 25,939,601 | ||||||
*Vanguard
PRIMECAP Fund
|
Registered
Investment Company
|
30,771,527 | 44,263,313 | ||||||
*Vanguard
Small-Cap Value Index
|
Registered
Investment Company
|
9,190,706 | 9,629,796 | ||||||
*Vanguard
Target Retirement 2005
|
Registered
Investment Company
|
3,940,465 | 4,021,168 | ||||||
*Vanguard
Target Retirement 2010
|
Registered
Investment Company
|
227,664 | 224,051 | ||||||
*Vanguard
Target Retirement 2015
|
Registered
Investment Company
|
9,674,390 | 10,407,949 | ||||||
*Vanguard
Target Retirement 2020
|
Registered
Investment Company
|
360,967 | 352,184 | ||||||
*Vanguard
Target Retirement 2025
|
Registered
Investment Company
|
8,489,567 | 9,357,849 | ||||||
*Vanguard
Target Retirement 2030
|
Registered
Investment Company
|
124,274 | 123,645 | ||||||
*Vanguard
Target Retirement 2035
|
Registered
Investment Company
|
2,785,128 | 3,058,217 | ||||||
*Vanguard
Target Retirement 2040
|
Registered
Investment Company
|
92,748 | 89,380 | ||||||
*Vanguard
Target Retirement 2045
|
Registered
Investment Company
|
1,140,747 | 1,212,180 | ||||||
*Vanguard
Target Retirement 2050
|
Registered
Investment Company
|
27,537 | 26,228 | ||||||
*Vanguard
Target Retirement Inc
|
Registered
Investment Company
|
1,466,441 | 1,510,098 | ||||||
*Vanguard
Total Bond Market Index
|
Registered
Investment Company
|
18,996,234 | 19,133,383 | ||||||
*Vanguard
Windsor II Fund Investment
|
Registered
Investment Company
|
23,767,211 | 27,348,650 | ||||||
*Vanguard
Retire Savings Trust
|
Common/Collective
Trust
|
77,446,730 | 77,446,730 | ||||||
*Hercules
Common Stock Fund
|
Company
Stock Fund
|
28,255,310 | 26,659,846 | ||||||
*Hercules
ESOP Fund
|
Company
Stock Fund
|
25,652,843 | 29,396,928 | ||||||
*Hercules
ESOP – Unallocated
|
Company
Stock Fund
|
18,429,155 | 18,467,330 | ||||||
Subtotal
|
$ | 353,675,782 | $ | 396,045,894 | |||||
*Loan
Fund
|
5.25%
- 9.75%
|
4,462,705 | 4,462,705 | ||||||
Total
Assets Held for Investment Purposes
|
$ | 358,138,487 | $ | 400,508,599 | |||||
*Party
in Interest
|
Identity
of Party Involved
|
Description
of Asset (include interest)
|
Purchase
Price
|
Selling
Price
|
Historical
Cost of Asset
|
Current
Value of Asset on Transaction Date*
|
Historical
Gain
|
|||||||||||||||
The
Vanguard Group
|
Vanguard
Retirement Savings Trust
|
$ | 82,483,336 | $ | 82,483,336 | ||||||||||||||||
The
Vanguard Group
|
Vanguard
Retirement Savings Trust
|
$ | 5,036,607 | $ | 5,036,607 | 5,036,607 | — | ||||||||||||||
The
Vanguard Group
|
Hercules
Blended Interest Fund
|
16,720,686 | 16,720,686 | ||||||||||||||||||
The
Vanguard Group
|
Hercules
Blended Interest Fund
|
92,970,538 | 92,970,538 | 92,970,538 | — | ||||||||||||||||
The
Vanguard Group
|
Hercules
Common Stock Fund
|
15,551,007 | 15,551,007 | ||||||||||||||||||
The
Vanguard Group
|
Hercules
Common Stock Fund
|
15,883,828 | 14,501,756 | 15,883,828 | 1,382,071 | ||||||||||||||||
* Transactions
or a series of transactions in excess of 5% of the current value of the
Plan's assets as of the beginning of the plan
|
|||||||||||||||||||||
year
as defined in Section 2520.103-6 of the Department of Labor Rules and
Regulations for Reporting and Disclosure under ERISA.
|
HERCULES
INCORPORATED SAVINGS AND INVESTMENT PLAN
|
|
/s/
Edward V. Carrington
|
|
Edward
V. Carrington
Vice
President, Human Resources
Plan
Administrator
|
|
June
23, 2008
|
Number
|
Description
|
23.1
|
Consent
of Independent Accountants
|