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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(Mark One):
X ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ---
ACT OF 1934
For the fiscal year ended December 31, 2001
OR
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ---
ACT OF 1934
For the transition period from __________ to ___________
Commission file number 1-13782
A. Full title of the plan and the address of the plan, if different from that
of the issuer named below:
Westinghouse Air Brake Company Savings Plan for Hourly Employees
B. Name of issuer of the securities held pursuant to the plan and the address
of the principal executive office.
Westinghouse Air Brake Technologies Corporation
1001 Air Brake Avenue
Wilmerding, PA 15148
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WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION SAVINGS PLAN FOR HOURLY
EMPLOYEES
Form 11-K Annual Report Pursuant To Section 15(D) of
the Securities Exchange Act of 1934
For The Fiscal Year Ended December 31, 2001
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION SAVINGS PLAN FOR HOURLY
EMPLOYEES
ANNUAL REPORT ON FORM 11-K
DECEMBER 31, 2001 AND 2000
TABLE OF CONTENTS
PAGE
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Report of Independent Public Auditors 1
Statements of Net Assets Available for Benefits,
December 31, 2001 and 2000 3
Statement of Changes in Net Assets Available for
Benefits for the Years Ended December 31, 2001 and
2000 4
Notes to Financial Statements 5
Supplemental Schedule:
Item 4i - Schedule of Assets Held at End of Year,
December 31, 2001 Schedule I
REPORT OF INDEPENDENT PUBLIC AUDITORS
To the Westinghouse Air Brake Technologies Corporation Savings Plan for Hourly
Employees and Participants:
We have audited the accompanying statement of net assets available for benefits
of the Westinghouse Air Brake Technologies Corporation Savings Plan for Hourly
Employees as of December 31, 2001 and the related statement of changes in net
assets available for benefits for the year then ended. These financial
statements are the responsibility of the Plan's management. Our responsibility
is to express an opinion on these financial statements and schedule based on our
audit.
We conducted our audit in accordance with auditing standards generally accepted
in the 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. 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 audit provides 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 as of
December 31, 2001, and the changes in its net assets available for benefits for
the year then ended, in conformity with accounting principles generally accepted
in the United States.
Our audit was made for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying schedule of assets held at end of
year is presented for purposes 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 audit of
the financial statements and, in our opinion, is fairly stated in all material
respects in relation to the financial statements taken as a whole.
/s/ Ernst & Young LLP
Pittsburgh, Pennsylvania
June 20, 2002
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Westinghouse Air Brake Technologies Corporation Savings Plan for Hourly
Employees and Participants:
We have audited the accompanying statement of net assets available for benefits
of the Westinghouse Air Brake Technologies Corporation Savings Plan for Hourly
Employees (the Plan) as of December 31, 2000 and 1999 and the related statement
of changes in net assets available for benefits for the year ended December 31,
2000. These financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these financial
statements and schedule based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the 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. 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 net assets available for benefits of the Plan as of
December 31, 2000 and 1999 and the changes in its net assets available for
benefits for the year ended December 31, 2000, in conformity with accounting
principles generally accepted in the United States.
/s/ Arthur Andersen LLP
Pittsburgh, Pennsylvania
June 13, 2001
This is a copy of the audit report previously issued by Arthur Andersen in
connection with the Plan's filing on Form 11-K for the year ended December 31,
2000. This audit report has not been reissued by Arthur Andersen in connection
with this filing on Form 11-K. See exhibit 23.2 for further discussion.
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WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
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SAVINGS PLAN FOR HOURLY EMPLOYEES
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STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
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DECEMBER 31, 2001 AND 2000
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2001 2000
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INVESTMENTS, at market $ 926,125 $ 550,805
RECEIVABLE FOR PLAN MERGER - 528,899
PARTICIPANT LOANS 61,763 28,863
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NET ASSETS AVAILABLE FOR BENEFITS $ 987,888 $1,108,567
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The accompanying notes are an integral part of these financial statements.
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WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
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SAVINGS PLAN FOR HOURLY EMPLOYEES
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STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
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FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000
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2001 2000
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NET ASSETS AVAILABLE FOR BENEFITS, beginning of year
$ 1,108,567 $ 841,772
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INCREASES:
Employee contributions 159,333 52,902
Transfer in from 401(k) plans 24,202 555,797
Investment income-
Interest and dividends 37,264 42,525
Net depreciation in fair value of investments (138,719) (20,467)
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Net investment (loss)/gain (101,455) 22,058
Total increases 82,080 630,757
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DECREASES:
Benefit payments 202,098 363,597
Administrative expenses 365 661
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Total decreases 202,759 363,962
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NET (DECREASE)/INCREASE (120,679) 266,795
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NET ASSETS AVAILABLE FOR BENEFITS, end of year $ 987,888 $ 1,108,567
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The accompanying notes are an integral part of these financial statements.
4
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
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SAVINGS PLAN FOR HOURLY EMPLOYEES
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NOTES TO FINANCIAL STATEMENTS
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DECEMBER 31, 2001 AND 2000
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1. DESCRIPTION OF PLAN:
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The following brief description of the Plan is provided for general information
purposes only. Participants should refer to the Plan document for more complete
information.
General
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The Westinghouse Air Brake Technologies Corporation Savings Plan for Hourly
Employees (the Plan), effective May 1, 1999, is a contributory plan intended to
comply with the provisions of Sections 401(a), 401(k), and 401(m) of the
Internal Revenue Code (IRC).
Contributions
-------------
Participants may contribute, through payroll deductions, employee elective
contributions from 1% to 16% of their compensation each Plan year, limited to
$10,500 in 2001. In addition, participants may contribute employee after tax
contributions from 1% to 16% of their compensation each Plan year.
Participant total annual contributions may not exceed the contribution limits
under Section 415(c) of the IRC. In addition, the combination of an employee's
elective contribution and after tax contribution cannot exceed 16% of his/her
compensation.
Withdrawals
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Participants may make the following types of withdrawals:
IN-SERVICE WITHDRAWALS--A participant may withdraw any amount of the vested
portion of his/her employer matching account, employer after-tax account,
and rollover accounts once in any six-month period. Once a participant has
reached age 59-1/2, he/she can withdraw any portion of his/her employee
elective account.
HARDSHIP WITHDRAWALS--In the case of hardship, as defined in the Plan
document, the participant can receive 100% of his/her employee elective
account. Hardship withdrawals are limited to once every Plan year.
Loans
-----
Participants may receive loans from the Plan. At no time shall the loans of the
participant exceed the lesser of: 50% of the value of the participant's vested
balance of his/her accounts, reduced by any outstanding loan balance or $50,000.
Vesting
Employee contributions are at all times 100% vested and nonforfeitable.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
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Basis of Accounting
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The accounts of the Plan are maintained on the accrual basis of accounting.
Expenses incurred by the plan administrator, investment manager and trustee for
their services and costs in administering the Plan are paid directly by the
Company.
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Investment Options
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The trustee of the investments is Fidelity Management Trust Company (Fidelity)
per the Trust Agreement dated May 1, 1999. Fidelity maintains the investments
and provides record-keeping functions for the Plan. Each participant's account,
at the discretion of the participant, may be invested in any of the following
funds:
a. FIDELITY EQUITY INCOME FUND--This fund invests approximately 80% of its
portfolio in common and preferred stocks and 20% in debt securities, usually
those convertible to common stock. The goal of this fund is to provide dividends
as well as price appreciation.
b. FIDELITY GROWTH COMPANY FUND--This fund invests in securities of companies
with above average growth characteristics as demonstrated in earnings or gross
sales. These securities include common stocks, securities convertible into
common stocks and occasionally debt obligations.
c. FIDELITY OVERSEAS FUND--This fund normally invests at least 65% of the fund's
total assets in securities of issuers from at least three countries outside the
United States. These securities include common stocks, securities convertible to
common stocks and debt instruments of foreign businesses and governments.
d. FIDELITY BLUE CHIP GROWTH FUND--This fund invests primarily in a diversified
portfolio of common stocks of well-known and established companies. Normally, at
least 65% of these securities are issued by "blue chip" companies. A blue chip
firm can generally be described as having a market value of at least $200
million in outstanding stock. Its securities usually are included in the
Standard & Poor's Composite Stock Price Index of 500 common stocks or the Dow
Jones Industrial Average. This fund seeks growth of capital over the long term.
e. FIDELITY ASSET MANAGER FUND--This fund invests in money market instruments,
intermediate and long-term bonds and equities. The goal of this fund is to seek
high total return with reduced investment risk over the long term.
f. FIDELITY MANAGED INCOME PORTFOLIO II--This portfolio invests in contracts
with rates and maturities that are set monthly and provide current, competitive
interest rates. The portfolio also invests in longer term Guaranteed Investment
Contracts (GICs) with fixed rates of interest. This portfolio seeks preservation
of capital and a competitive level of income over time.
g. SPARTAN U.S. EQUITY INDEX PORTFOLIO--This portfolio invests in common stocks
of the companies that make up the Standard and Poor's (S&P) 500 Index. The goal
of this account is to model the S&P 500 Index in such a way that the account's
performance is similar to that of the Index.
h. FIDELITY MAGELLAN--This fund invests primarily in common stocks. Invests in
domestic and foreign issuers. Invests in either growth or value stocks or both.
The value of the fund's domestic and foreign investments will vary from day to
day in response to many factors.
i. T. ROWE PRICE SCIENCE & TECHNOLOGY FUND--The fund seeks long-term growth of
capital. The fund's strategy is to invest at least 65% of total assets in common
stocks of companies expected by T. Rowe Price to benefit from development,
advancement, and the use of science and technology.
j. BANC ONE BOND FUND--With its portfolio of intermediate and long-term bonds,
the fund strives to maximize total return and provide a high level of monthly
income. In most cases, the fund invests at least 75% of its assets in
high-quality, investment-grade bonds rated AA or better.
k. FIDELITY FREEDOM 2000, 2010, 2020, 2030, 2040 FUND--The objective of these
funds is to seek a high total return. Underlying securities are other Fidelity
mutual funds. Designed for investors who expect to retire around the respective
fund date. The fund does not mature in the respective year; its allocation
strategy becomes increasingly conservative as it approaches its target
retirement year.
l. FIDELITY CONTRAFUND--Seeks capital appreciation. Invests primarily in common
stocks of companies whose value FMR believes is not fully recognized by the
public. The types of companies in which the fund may invest include companies
experiencing positive fundamental change such as a new management team or
product launch.
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m. WABTEC COMMON STOCK FUND--This is a concentrated investment with results
depending entirely on the performance of the company's common stock. Shares will
be purchased for the account at the current market price.
Investments are valued at their market values based on published quotations or,
in the absence of readily ascertainable market values, at such values as the
trustee will determine.
Tax Status
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The Plan has not received a determination letter from the Internal Revenue
Service stating that the Plan is qualified under Section 401(a) of the Internal
Revenue Code (the "Code"). However, the Plan Administrator represents and
believes that the Plan is qualified and, therefore, the related trust is exempt
from taxation
Use of Estimates in the Preparation of Financial Statements
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The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires the plan administrator to make
estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results may differ from these
estimates.
3. INVESTMENTS:
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The trustee of the Plan held the Plan's investments and executed transactions
therein. The fair market values of individual assets that represent 5% or more
of the Plan's net assets as of December 31, 2001 and 2000 are as follows:
2001 2000
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Fidelity Managed Income Portfolio II $379,273 $318,610
T. Rowe Price Science & Technology Fund 150,123 -
Fidelity Freedom 2040 Fund 93,280 -
Fidelity Equity Income Fund 63,520 108,694
Fidelity Asset Manager Fund 60,656 8,357
Fidelity Overseas Fund 25,730 42,967
Spartan U.S. Equity Index Portfolio 18,555 34,869
4. PLAN TERMINATION:
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In the event the Plan is terminated, the Company will direct either (a) that the
investment manager and trustee continue to hold the participants' accounts in
accordance with the Plan, or (b) that the investment manager and trustee
immediately distribute to each participant all amounts in the participant's
account in a single lump-sum payment.
7
SCHEDULE 4i
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
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SAVINGS PLAN FOR HOURLY EMPLOYEES
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PLAN NUMBER 009
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EMPLOYER IDENTIFICATION NUMBER 25-1615902
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SCHEDULE 4i SCHEDULE OF ASSETS AT END OF YEAR
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DECEMBER 31, 2001
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Identity of Issue Description of Investment Current Value
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Common Stock
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* Wabtec Corporation Wabtec Corporation
2,597.97 Shares $ 26,577
Registered Investment Companies
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* Fidelity Management Trust Company * T. Rowe Price Science & Technology
Fund 150,123
* Banc One Bond Fund 40,149
* Fidelity Magellan 15,248
* Fidelity Contrafund 876
* Fidelity Equity Income Fund 63,520
* Fidelity Growth Company Fund 17,550
* Fidelity Overseas Fund 25,730
* Fidelity Blue Chip Growth Fund 10,830
* Fidelity Asset Manager Fund 60,656
* Fidelity Freedom 2000 Fund 63
* Fidelity Freedom 2010 Fund 6,428
* Fidelity Freedom 2020 Fund 9,666
* Fidelity Freedom 2030 Fund 7,601
* Fidelity Managed Income Portfolio II 379,273
* Spartan US Equity Index Portfolio 18,555
* Fidelity Freedom 2040 Fund 93,280
Loan Fund
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* Participants * Participant Loans
61,763
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$ 987,888
* Indicates party-in-interest.
The accompanying notes to financial statements are an integral part of this
schedule.
Schedule I
8
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Company has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
Westinghouse Air Brake Technologies Corporation
By /s/ Robert J. Brooks
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Robert J. Brooks
Chief Financial Officer
June 29, 2002
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