e11vk
United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2007
Commission file number 1-12984
EAGLE MATERIALS INC. HOURLY PROFIT SHARING PLAN
(Full title of the plan)
EAGLE MATERIALS INC.
3811 Turtle Creek Blvd, Suite 1100
Dallas, Texas 75219
(Name of issuer and address of principal executive office)
EAGLE MATERIALS INC. HOURLY PROFIT SHARING PLAN
FINANCIAL STATEMENTS
AT DECEMBER 31, 2007 AND 2006,
AND FOR THE YEAR ENDED DECEMBER 31, 2007
Report of Independent Registered Public Accounting Firm
The Administrative Committee
Eagle Materials Inc. Hourly Profit Sharing Plan
We have audited the accompanying statements of net assets available for benefits of the Eagle
Materials Inc. Hourly Profit Sharing Plan as of December 31, 2007 and 2006, and the related
statement of changes in net assets available for benefits for the year ended December 31, 2007.
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 the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. We
were not engaged to perform an audit of the Plan’s internal control over financial reporting. Our
audits included consideration of internal control over financial reporting as a basis for designing
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Plan’s internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the net assets available for benefits of the Plan at December 31, 2007 and 2006, and the
changes in its net assets available for benefits for the year ended December 31, 2007, in
conformity with U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Dallas, Texas
June 26, 2008
1
Eagle Materials Inc. Hourly Profit Sharing Plan
Statements of Net Assets Available for Benefits
| |
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|
|
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| |
|
December 31 |
|
| |
|
2007 |
|
|
2006 |
|
Assets |
|
|
|
|
|
|
|
|
Investments in the Eagle Materials Inc. Plans Master Trust,
at fair value |
|
$ |
14,393,255 |
|
|
$ |
12,829,102 |
|
Net assets available for benefits, at fair value |
|
|
14,393,255 |
|
|
|
12,829,102 |
|
Adjustment from fair value to contract value for fully
benefit- responsive investment contracts held by a
common/collective trust |
|
|
4,872 |
|
|
|
3,581 |
|
|
|
|
|
|
|
|
Net assets available for benefits |
|
$ |
14,398,127 |
|
|
$ |
12,832,683 |
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
2
Eagle Materials Inc. Hourly Profit Sharing Plan
Statement of Changes in Net Assets Available for Benefits
Year ended December 31, 2007
| |
|
|
|
|
Additions: |
|
|
|
|
Participating Employers’ contributions |
|
$ |
736,114 |
|
Participant contributions |
|
|
1,330,955 |
|
Participant rollovers |
|
|
40,401 |
|
Interest in the Eagle Materials Inc. Plans Master Trust
investment income |
|
|
716,736 |
|
|
|
|
|
Total additions |
|
|
2,824,206 |
|
|
|
|
|
|
|
|
|
|
Deductions: |
|
|
|
|
Benefits paid to participants |
|
|
1,193,159 |
|
Administrative expenses |
|
|
42,626 |
|
|
|
|
|
Total deductions |
|
|
1,235,785 |
|
|
|
|
|
|
|
|
|
|
Transfer to the Profit Sharing and Retirement Plan of
Eagle Materials Inc. |
|
|
(22,977 |
) |
|
|
|
|
|
|
|
|
|
Net increase in net assets available for benefits |
|
|
1,565,444 |
|
|
|
|
|
|
Net assets available for benefits: |
|
|
|
|
Beginning of year |
|
|
12,832,683 |
|
|
|
|
|
End of year |
|
$ |
14,398,127 |
|
|
|
|
|
See accompanying notes to financial statements.
3
EAGLE MATERIALS INC. HOURLY PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 2007
NOTE 1. DESCRIPTION OF THE PLAN
The following description of Eagle Materials Inc. Hourly Profit Sharing Plan (the Plan) provides
only general information. Participants should refer to the Plan document for a more complete
description of the Plan’s provisions.
General
The Plan, established April 1, 1994 and amended and restated January 1, 2001, is a defined
contribution retirement plan covering eligible employees of Eagle
Materials Inc. (“the Company” or
“Employer”) and eligible employees of other related corporations which adopt the Plan with the
Company’s consent. The Company and certain subsidiaries collectively comprise the “Participating
Employers.” The Plan is administered by the Administrative
Committee (“the Committee”) appointed by
the Board of Directors of the Company. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”).
Eligibility
The Plan has three distinct types of eligible employees: (1) employees eligible to participate in
the employer profit sharing contributions, (2) employees eligible to participate in employer
matching contributions or (3) employees not eligible to participate in any employer contribution.
Eligible employees may not participate in both employer profit sharing and matching contributions.
Certain hourly employees of the Participating Employers participate in profit sharing contributions
on the earlier of January 1 or July 1 after completing one year of service, as defined. One year
of service, for purposes of eligibility, is defined as a consecutive twelve month period during
which the employee worked 1,000 hours, ending on the first anniversary of the employee’s date of
hire. Hourly employees of Republic Paperboard Company, LLC (Republic), a subsidiary of the
Company, may participate in matching contributions on the date the employee first performs an hour
of service for the Employer, as defined. Hourly employees of Mathews Ready Mix LLC (Mathews), a
subsidiary of the Company, may also participate in matching contributions during the calendar year
in which they participate.
A member of a group or class of employees covered by a collective bargaining agreement is not
eligible to participate in the Plan unless such agreement extends the Plan to such group or class
of employees.
Contributions
The Plan permits participants to contribute pre-tax up to 70% of their compensation, up to a
statutory limit, as defined, to a 401(k) account upon the date of hire. Total contributions to a
participant’s account are limited to a maximum of 100% of compensation (or $45,000, whichever is
less) for participant contributions and Participating Employer’s contributions. Participants may
also contribute amounts representing distributions from other qualified defined benefit and defined
contribution plans.
4
EAGLE MATERIALS INC. HOURLY PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 2007
NOTE 1. DESCRIPTION OF THE PLAN (continued)
Matching and profit sharing contributions are made by the Participating Employers as determined by
their respective Boards of Directors. Profit sharing contributions are made to all participants
employed on December 31 of each year, and are allocated to participant accounts on a pro rata basis
determined by each participant’s number of hours worked. Employer nondiscretionary matching
contributions for eligible employees of Republic are allocated to participant accounts based on 75%
of each participant’s eligible contributions up to 6% of compensation, as defined by the Plan.
Employer nondiscretionary matching contributions for eligible employees of Mathews are allocated to
participant accounts based on 100% of each participant’s eligible contributions up to $500
annually, as defined by the Plan. The Participating Employers, at their sole discretion, may make
qualified non-elective contributions to the Plan. No such contributions were made for the 2007
Plan year. Forfeitures may be used to reduce employer profit sharing contributions or
administrative expenses of the Plan. Forfeitures of $78,744 were used to reduce employer
contributions remitted to the Plan for the plan year ended December 31, 2007.
Participants direct the investment of their accounts into various registered investment company
funds, a common/collective trust fund or the Eagle Materials Common
Stock Fund (“EXPSF”). Another
fund, the Centex Common Stock Fund (“CCSF”), exists for those employees who chose to retain their
balance in this fund upon transfer of all of their balances from the Profit Sharing and Retirement
Plan of Centex Corporation to the Plan in 1994. No additional contributions to the CCSF are
permitted. Both the EXPSF and CCSF are unitized stock funds.
Participants may allocate up to 15% of employer and participant contributions to the EXPSF, whereas
up to 100% may be allocated to any other investment option (except CCSF) offered by the Plan.
Vesting
Matching Contributions — Participants’ Employer nondiscretionary matching contributions made prior
to January 1, 2002 do not vest until the completion of five years of vesting service, as defined.
For Employers’ nondiscretionary matching contributions made after December 31, 2001, the
participant need only complete three years of vesting service, as defined.
Profit Sharing Contributions - For Employer Profit Sharing Contributions made with respect to Plan
Years beginning on or before December 31, 2006, the participants with less than 5 years of vesting
service will be 0% vested in employer contributions and participants with 5 or more years of
vesting service will be 100% vested. For Employer Profit Sharing Contributions made with respect to
Plan Years beginning on or after January 1, 2007, the participants with less than 3 years of
vesting service will be 0% vested in employer contributions, and participants with 3 or more years
of vesting service will be 100% vested.
Participants are fully vested in all contributions upon retirement, full and permanent disability,
or death.
5
EAGLE MATERIALS INC. HOURLY PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 2007
NOTE 1. DESCRIPTION OF THE PLAN (continued)
The Plan provides for distributions when a participant terminates employment and the present value
of the participant’s vested accrued benefit is equal to or less than $5,000. A summary of such
provisions follows:
| |
• |
|
Upon termination of service, if the fair value of a participant’s vested accrued benefit
is $5,000 or less, the Committee shall direct Fidelity Management Trust Company (“the
Trustee”) to distribute the present value of the participant’s vested balance in a single
sum. In the event of a mandatory distribution greater than $1,000 (but less than $5,000),
if the participant does not elect to have such distribution paid directly to an eligible
retirement plan or to receive the distribution, then the Committee will pay the
distribution in a Direct Rollover to an individual retirement plan designated by the
Committee. |
| |
| |
• |
|
If a participant terminates service when the participant’s vested accrued benefit is
zero, the participant is deemed to receive a distribution of his entire vested accrued
benefit as of the day of termination. |
Participants are always fully vested in their participant contributions, related earnings and
participant rollovers.
Participant Loans
Loans by participants are not permitted.
Distributions
In accordance with the Plan document, distribution of a participant’s vested account is available
upon the participant’s retirement, death, disability, termination of employment, or attainment of
age 59 1/2; or distribution is available to satisfy a financial hardship meeting the requirements of
the Internal Revenue Service (“IRS”) regulations. Distributions are made in a lump-sum payment, a
direct rollover distribution, or a combination thereof.
Termination of the Plan
Although the Employer has not expressed intent to terminate the Plan, it may do so at any time
subject to the requirements of ERISA. If the Plan is terminated, participants will become fully
vested in their Participating Employers’ contributions, and the method of distribution of assets
will be in accordance with the provisions of ERISA.
Administrative Expenses
Certain administrative expenses of the Plan are paid by the Company. The Plan is not required to
reimburse the Company for any administrative expenses paid by the Company. Expenses not paid by the
Company are paid by the Plan.
6
EAGLE MATERIALS INC. HOURLY PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 2007
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis of accounting.
Distributions to participants are recorded when paid.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted
in the United States requires management to make estimates that affect the amounts reported in the
financial statements and accompanying notes. Actual results could differ from those estimates.
Valuation of Investments
All of the Plan’s investments are commingled with the investments of the Profit Sharing and
Retirement Plan of Eagle Materials Inc. (the Eagle Salaried Plan) in the Eagle Materials Inc. Plans
Master Trust (“the Master Trust”). The Master Trust is governed by a trust agreement with the
Trustee which is held accountable by and reports to the Committee.
Investments included in the Master Trust are valued at fair value. The registered investment
company shares are valued based on published market prices, which represent the net asset value of
shares held by the Plan at year-end. Investments in the unitized stock funds are determined by the
value of the underlying common stocks combined with the short-term cash positions. The fair values
of the common stock portion of the funds are based on the closing prices of the common stocks on
their primary exchange. The short-term cash positions of the unitized stock fund are recorded at
cost, which approximates fair value. Investments in the common/collective trust fund qualify as a
stable value fund with underlying investments in fully benefit-responsive investment contracts.
These investments are stated at fair value as determined by the issuer based on the fair value of
the underlying assets in such trust, then adjusted by the issuer to contract value. Contract value
represents contributions made to the trust, plus earnings, less participant withdrawals, and less
administrative expenses.
Purchases and sales of investments are recorded on a trade-date basis. Interest income is recorded
on an accrual basis. Dividends are recorded on the ex-dividend date.
The Master Trust allocates net investment income/(loss) to the Plan based on the ratio of fair
values of the Plan’s investment in each Master Trust account. Net investment income is then
allocated to participants on a pro rata basis. Administrative expenses for the year ended December
31, 2007, include Trustee and record keeper fees. Fund management fees are charged directly to the
Master Trust and therefore are included in the net change in fair value of investments for the
Master Trust. Administrative expenses are allocated pro rata to the Plan and the Eagle Salaried
Plan.
7
EAGLE MATERIALS INC. HOURLY PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 2007
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (continued)
Recently Issued Accounting Standards
In September 2006, the Financial Accounting Standards Board issued Statement No. 157, Fair Value
Measurements (“FAS 157”). This statement defines fair value, establishes a framework for measuring
fair value and expands disclosures about fair value measurements. FAS 157 is effective for the Plan
in 2008. The Plan’s management is currently evaluating FAS 157’s impact on its financial
statements.
NOTE 3. INTEREST IN THE MASTER TRUST
The fair value of the commingled investments of the participating plans in the Master Trust
accounts at December 31, 2007 and 2006, and the undivided percentage interests the Plan holds in
each of the Master Trust accounts are summarized as follows:
8
EAGLE MATERIALS INC. HOURLY PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 2007
NOTE 3. INTEREST IN THE MASTER TRUST (continued)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2007 |
|
|
2006 |
|
| |
|
|
|
|
|
Percentage |
|
|
|
|
|
|
Percentage |
|
| |
|
Fair Value |
|
|
Interest |
|
|
Fair Value |
|
|
Interest |
|
Registered Investment Companies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American Beacon Funds Large Cap Value Plan
Ahead Class Fund |
|
$ |
1,627,293 |
|
|
|
28.5 |
% |
|
$ |
— |
|
|
|
— |
|
TCW Select Equities Class N Fund |
|
|
— |
|
|
|
— |
|
|
|
124,011 |
|
|
|
58.6 |
% |
Baron Small Cap Fund |
|
|
350,607 |
|
|
|
10.5 |
% |
|
|
90,529 |
|
|
|
16.3 |
% |
JPMorgan Diversified Mid Cap Growth Class
A Fund |
|
|
2,599,706 |
|
|
|
29.1 |
% |
|
|
2,071,483 |
|
|
|
32.1 |
% |
American Beacon Funds Small Cap Value
Plan Ahead Class Fund |
|
|
672,400 |
|
|
|
20.2 |
% |
|
|
652,087 |
|
|
|
16.7 |
% |
LMP Aggressive Growth Class A |
|
|
214,220 |
|
|
|
59.6 |
% |
|
|
— |
|
|
|
— |
|
Fidelity Low-Priced Stock Fund |
|
|
3,509,038 |
|
|
|
21.5 |
% |
|
|
4,835,202 |
|
|
|
15.7 |
% |
Fidelity Equity-Income II Fund |
|
|
— |
|
|
|
— |
|
|
|
1,645,113 |
|
|
|
25.3 |
% |
Fidelity Diversified International Fund |
|
|
5,376,448 |
|
|
|
13.7 |
% |
|
|
3,530,476 |
|
|
|
15.3 |
% |
Fidelity Dividend Growth Fund |
|
|
— |
|
|
|
— |
|
|
|
2,294,191 |
|
|
|
29.0 |
% |
Fidelity Freedom Income Fund |
|
|
291,282 |
|
|
|
9.5 |
% |
|
|
439,833 |
|
|
|
5.9 |
% |
Fidelity Freedom 2000 Fund |
|
|
6,977,530 |
|
|
|
52.3 |
% |
|
|
7,439,495 |
|
|
|
48.9 |
% |
Fidelity Freedom 2010 Fund |
|
|
7,311,150 |
|
|
|
16.9 |
% |
|
|
6,623,238 |
|
|
|
16.3 |
% |
Fidelity Freedom 2020 Fund |
|
|
8,147,209 |
|
|
|
20.0 |
% |
|
|
7,353,390 |
|
|
|
17.3 |
% |
Fidelity Freedom 2030 Fund |
|
|
2,319,577 |
|
|
|
40.1 |
% |
|
|
1,512,822 |
|
|
|
46.3 |
% |
Fidelity Freedom 2040 Fund |
|
|
1,537,213 |
|
|
|
48.6 |
% |
|
|
916,627 |
|
|
|
50.6 |
% |
Spartan Extended Market Index Fund |
|
|
1,856,275 |
|
|
|
14.2 |
% |
|
|
1,906,348 |
|
|
|
11.7 |
% |
Spartan U.S. Equity Index Fund |
|
|
7,442,824 |
|
|
|
16.1 |
% |
|
|
4,892,875 |
|
|
|
9.6 |
% |
Fidelity U.S. Bond Index Fund |
|
|
1,987,897 |
|
|
|
25.3 |
% |
|
|
1,803,889 |
|
|
|
23.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
52,220,669 |
|
|
|
|
|
|
|
48,131,609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eagle Materials Common Stock Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eagle Materials Common Stock |
|
|
4,076,333 |
|
|
|
|
|
|
|
4,971,493 |
|
|
|
|
|
Interest-Bearing Cash Equivalent |
|
|
126,058 |
|
|
|
|
|
|
|
130,696 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,202,391 |
|
|
|
17.7 |
% |
|
|
5,102,189 |
|
|
|
18.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Centex Common Stock Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Centex Common Stock |
|
|
163,735 |
|
|
|
|
|
|
|
707,820 |
|
|
|
|
|
Interest-Bearing Cash Equivalent |
|
|
1,722 |
|
|
|
|
|
|
|
6,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
165,457 |
|
|
|
4.5 |
% |
|
|
714,235 |
|
|
|
2.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common/Collective Trust |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fidelity Managed Income Portfolio Fund |
|
|
2,479,135 |
|
|
|
|
|
|
|
2,504,981 |
|
|
|
|
|
Adjustment from fair value to contract
value for fully benefit-responsive
investment contracts |
|
|
26,942 |
|
|
|
|
|
|
|
25,213 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,506,077 |
|
|
|
18.1 |
% |
|
|
2,530,194 |
|
|
|
14.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
59,094,594 |
|
|
|
|
|
|
$ |
56,478,227 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9
EAGLE MATERIALS INC. HOURLY PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 2007
NOTE 3. INTEREST IN THE MASTER TRUST (continued)
Net investment income/(loss) of the Master Trust accounts for the year ended December 31, 2007, and
the Plan’s share of net investment income/(loss) of each Master Trust account is summarized as
follows:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Net Appreciation |
|
|
|
|
|
|
|
|
|
|
| |
|
(Depreciation) in |
|
|
|
|
|
|
|
|
|
Share in Net |
| |
|
Fair Value of |
|
Interest and |
|
Net Investment |
|
Investment |
| |
|
Investments |
|
Dividends |
|
Income/(Loss) |
|
Income/(Loss) |
| |
|
|
American Beacon Funds Large Cap Value
Plan Ahead Class Fund |
|
$ |
(181,886 |
) |
|
$ |
74,237 |
|
|
$ |
(107,649 |
) |
|
|
28.1 |
% |
TCW Select Equities Class N Fund |
|
|
16,536 |
|
|
|
— |
|
|
|
16,536 |
|
|
|
78.3 |
% |
Baron Small Cap Fund |
|
|
(3,341 |
) |
|
|
22,859 |
|
|
|
19,518 |
|
|
|
11.2 |
% |
JPMorgan Diversified Mid Cap Growth
Class A Fund |
|
|
(14,156 |
) |
|
|
353,815 |
|
|
|
339,659 |
|
|
|
31.4 |
% |
American Beacon Funds Small Cap Value
Plan Ahead Class Fund |
|
|
(138,727 |
) |
|
|
88,896 |
|
|
|
(49,831 |
) |
|
|
21.9 |
% |
LMP Aggressive Growth Class A |
|
|
(7,843 |
) |
|
|
— |
|
|
|
(7,843 |
) |
|
|
61.7 |
% |
Fidelity Low-Priced Stock Fund |
|
|
(177,402 |
) |
|
|
362,141 |
|
|
|
184,739 |
|
|
|
12.4 |
% |
Fidelity Equity-Income II Fund |
|
|
80,968 |
|
|
|
73,082 |
|
|
|
154,050 |
|
|
|
29.2 |
% |
Fidelity Diversified International Fund |
|
|
218,364 |
|
|
|
380,608 |
|
|
|
598,972 |
|
|
|
15.6 |
% |
Fidelity Dividend Growth Fund |
|
|
62,509 |
|
|
|
136,963 |
|
|
|
199,472 |
|
|
|
27.5 |
% |
Fidelity Freedom Income Fund |
|
|
(849 |
) |
|
|
17,890 |
|
|
|
17,041 |
|
|
|
7.8 |
% |
Fidelity Freedom 2000 Fund |
|
|
(40,629 |
) |
|
|
411,572 |
|
|
|
370,943 |
|
|
|
51.8 |
% |
Fidelity Freedom 2010 Fund |
|
|
95,577 |
|
|
|
432,264 |
|
|
|
527,841 |
|
|
|
16.0 |
% |
Fidelity Freedom 2020 Fund |
|
|
156,130 |
|
|
|
527,925 |
|
|
|
684,055 |
|
|
|
17.1 |
% |
Fidelity Freedom 2030 Fund |
|
|
37,060 |
|
|
|
123,212 |
|
|
|
160,272 |
|
|
|
47.3 |
% |
Fidelity Freedom 2040 Fund |
|
|
26,779 |
|
|
|
92,240 |
|
|
|
119,019 |
|
|
|
47.2 |
% |
Spartan Extended Market Index Fund |
|
|
5,710 |
|
|
|
119,400 |
|
|
|
125,110 |
|
|
|
10.0 |
% |
Spartan U.S. Equity Index Fund |
|
|
56,409 |
|
|
|
124,499 |
|
|
|
180,908 |
|
|
|
(3.7 |
)% |
Fidelity U.S. Bond Index Fund |
|
|
(1,712 |
) |
|
|
92,934 |
|
|
|
91,222 |
|
|
|
26.4 |
% |
Eagle Materials Common Stock Fund |
|
|
(745,187 |
) |
|
|
319 |
|
|
|
(744,868 |
) |
|
|
18.6 |
% |
Centex Common Stock Fund |
|
|
(267,304 |
) |
|
|
— |
|
|
|
(267,304 |
) |
|
|
3.3 |
% |
Fidelity Managed Income Portfolio Fund |
|
|
— |
|
|
|
104,027 |
|
|
|
104,027 |
|
|
|
15.4 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(822,994 |
) |
|
$ |
3,538,883 |
|
|
$ |
2,715,889 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
10
EAGLE MATERIALS INC. HOURLY PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 2007
NOTE 3. INTEREST IN THE MASTER TRUST (continued)
The Plan provides for investments in various investment securities. Investment securities are
exposed to various risks, such as interest rate, market, and credit risks. Due to the level of
risk associated with certain investment securities, it is at least reasonably possible that changes
in the values of investment securities will occur in the near term and that such changes could
materially affect participants’ account balances and the amounts reported in the statements of net
assets available for benefits.
NOTE 4. INCOME TAX STATUS
The Plan
has received a determination letter from the Internal Revenue Service
(“IRS”) dated June 4,
2003, stating that the Plan is qualified under Section 401(a) of the
Internal Revenue Code (“the
Code”) and, therefore, the related trust is exempt from taxation. Subsequent to this determination
by the IRS, the Plan was amended. Once qualified, the Plan is required to operate in conformity
with the Code to maintain its qualification. The plan administrator believes the Plan is being
operated in compliance with the applicable requirements of the Code and, therefore, believes that
the Plan, as amended, is qualified and the related trust is tax exempt.
NOTE 5. RELATED PARTY TRANSACTIONS
Certain Plan investments in the registered investment companies, the common/collective trust, and
the interest-bearing cash equivalent portion of the EXPSP are managed by the Trustee and,
therefore, these transactions qualify as party-in-interest transactions. Additionally, a portion
of the Plan’s assets is invested in the Company’s common stock. Because the Company is the Plan
Sponsor, transactions involving the Company’s common stock qualify as party-in-interest
transactions. All of these transactions are exempt from the prohibited transaction rules.
NOTE 6. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for benefits per the financial statements
to the Form 5500 at December 31, 2007 and 2006:
| |
|
|
|
|
|
|
|
|
| |
|
December 31, |
|
|
December 31, |
|
| |
|
2007 |
|
|
2006 |
|
Net assets available for benefits per the financial statements |
|
$ |
14,398,127 |
|
|
$ |
12,832,683 |
|
Adjustment from contact value to fair value for fully
benefit-responsive
investment contracts held by a common/collective trust |
|
|
(4,872 |
) |
|
|
(3,581 |
) |
|
|
|
|
|
|
|
Net assets available for benefits per Form 5500 |
|
$ |
14,393,255 |
|
|
$ |
12,829,102 |
|
|
|
|
|
|
|
|
11
EAGLE MATERIALS INC. HOURLY PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 2007
NOTE 6. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500 (continued)
The following is a reconciliation of the increase in net assets available for benefits per the
financial statements to the Form 5500 at December 31, 2007:
| |
|
|
|
|
| |
|
December 31, |
|
| |
|
2007 |
|
Net increase in net assets available for benefits per the financial statements |
|
$ |
1,565,444 |
|
Net change in adjustment from contract value to fair value for fully
benefit-responsive investment contracts held by a common/collective trust |
|
|
(1,291 |
) |
|
|
|
|
Net increase in assets available for benefits per Form 5500 |
|
$ |
1,564,153 |
|
|
|
|
|
The accompanying financial statements present fully benefit-responsive contracts at contract value,
while the Form 5500 requires fully benefit-responsive investment contracts to be reported at fair
value. Therefore, the adjustment from contract value to fair value for fully benefit-responsive
investment contracts represents a reconciling item.
NOTE 7. SUBSEQUENT EVENTS
On May 2, 2008, the Board of Directors of the Company approved an employer profit sharing
contribution to the Plan in the amount of $663,250, net of forfeitures of $35,000, which was
remitted to the Master Trust in May 2008.
12
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the
Administrative Committee which administers the Eagle Materials Inc. Hourly Profit Sharing Plan
has duly caused this Annual Report to be signed on its behalf by the undersigned, thereunto duly
authorized.
EAGLE MATERIALS INC. HOURLY PROFIT SHARING PLAN
| |
|
|
|
|
|
|
|
|
|
|
Date:
|
June 27, 2008
|
|
|
|
By:
|
|
/S/ ARTHUR R. ZUNKER, JR. |
|
|
|
|
|
|
|
|
|
Arthur R. Zunker, Jr.
|
|
|
|
|
|
|
|
|
|
|
Chairman, Administrative Committee |
|
|
INDEX TO EXHIBIT
Eagle Materials Inc. Hourly Profit Sharing Plan
| |
|
|
|
|
| Exhibit |
|
|
|
Filed Herewith or |
| Number |
|
Exhibit |
|
Incorporated by Reference |
| |
| |
| 23 |
|
Consent of Ernst & Young LLP |
|
Filed herewith |