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, 2005
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 AND SUPPLEMENTAL SCHEDULES
AT DECEMBER 31, 2005 AND 2004,
AND FOR THE YEAR ENDED DECEMBER 31, 2005
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, 2005 and 2004, and the related
statement of changes in net assets available for benefits for the year ended December 31, 2005.
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, 2005 and 2004, and the
changes in its net assets available for benefits for the year ended December 31, 2005, in
conformity with U.S. generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the financial statements taken
as a whole. The accompanying supplemental schedules of assets (held at end of year) as of December
31, 2005, and delinquent participant contributions for the year then ended, are presented for
purposes of additional analysis and are not a required part of the financial statements but are
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. These supplemental
schedules are the responsibility of the Plan’s management. The supplemental schedules have been
subjected to the auditing procedures applied in our audits of the financial statements and, in our
opinion, are fairly stated in all material respects in relation to the financial statements taken
as a whole.
Dallas, Texas
June 26, 2006
1
EAGLE MATERIALS INC. HOURLY PROFIT SHARING PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
| |
|
|
|
|
|
|
|
|
| |
|
December 31 |
| |
|
2005 |
|
2004 |
| |
|
|
Assets: |
|
|
|
|
|
|
|
|
Investments in the Eagle Materials Inc. Plans
Master Trust |
|
$ |
10,674,607 |
|
|
$ |
9,031,102 |
|
Participant loans |
|
|
5,352 |
|
|
|
27,218 |
|
Participant contributions receivable |
|
|
— |
|
|
|
45,866 |
|
Participating Employers’ contribution receivable |
|
|
— |
|
|
|
4,684 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Net Assets Available for Benefits |
|
$ |
10,679,959 |
|
|
$ |
9,108,870 |
|
| |
|
|
See accompanying notes to the financial statements.
2
EAGLE MATERIALS INC. HOURLY PROFIT SHARING PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 2005
| |
|
|
|
|
Additions: |
|
|
|
|
Participating Employers’ contributions |
|
$ |
678,611 |
|
Participant contributions |
|
|
1,067,285 |
|
Interest in the Eagle Materials Inc. Plans Master Trust
investment income |
|
|
820,259 |
|
Interest income on participant loans |
|
|
1,392 |
|
|
|
|
|
|
|
|
|
|
Total Additions |
|
|
2,567,547 |
|
|
|
|
|
|
Deductions: |
|
|
|
|
Distributions to participants |
|
|
962,621 |
|
Administrative expenses |
|
|
33,837 |
|
|
|
|
|
|
|
|
|
|
Total Deductions |
|
|
996,458 |
|
|
|
|
|
|
|
|
|
|
Net Increase |
|
|
1,571,089 |
|
|
|
|
|
|
Net Assets Available for Benefits: |
|
|
|
|
Beginning of year |
|
|
9,108,870 |
|
|
|
|
|
End of year |
|
$ |
10,679,959 |
|
|
|
|
|
See accompanying notes to the financial statements.
3
EAGLE MATERIALS INC. HOURLY PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2005
NOTE 1. DESCRIPTION OF THE PLAN
The following description of the 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, 1993 and amended and restated effective January 1, 2001, is a
defined contribution retirement plan covering eligible employees of Eagle Materials Inc. (the
Company or Eagle Materials) and eligible employees of certain subsidiaries of the Company, which
have adopted the Plan with the Company’s consent. The Company and certain subsidiaries collectively
comprise the “Participating Employers.” The Plan is administered by an 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).
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 contributions.
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 in the Plan.
One year of service, for purposes of eligibility, is defined as a twelve consecutive 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, participate in matching contributions on the date the employee first performs an hour of
service for the employer, as defined in the Plan. Hourly employees of Mathews Ready Mix (Mathews),
a subsidiary of the Company, 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 receive a profit sharing contribution unless such agreement extends the Plan to such
group or class of employees. Employees participating at the American Gypsum Duke, OK facility and
the employees at the Illinois Cement Company facility (hired after February 14, 2005) are eligible
for such contribution.
4
EAGLE MATERIALS INC. HOURLY PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2005
NOTE 1. DESCRIPTION OF THE PLAN (CONTINUED)
Contributions
The Plan permits participants to contribute pre-tax up to 70% of their compensation, as defined in
the Plan, (up to a statutory limit) 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 $42,000, whichever
is less) for participant contributions and Participating Employers’ contributions.
Profit sharing contributions are made by certain of the Participating Employers on a discretionary
basis as determined by their respective Boards of Directors. The contributions are allocated to
participant accounts on a pro rata basis determined by the 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, 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 2005 Plan year. Forfeitures may be used to reduce employer matching
contributions, employer profit sharing contributions or administrative expenses of the Plan.
Forfeitures of $8,841 were used to reduce employer profit sharing contributions remitted to the
Plan during the year ended December 31, 2005.
Participants direct the investment of their accounts into a variety of registered investment
company funds, common/collective trust fund or the Eagle Materials Common Stock Fund (the EXPSF).
Another fund, the Centex Common Stock Fund (the 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 the CCSF) offered by the Plan.
5
EAGLE MATERIALS INC. HOURLY PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2005
NOTE 1. DESCRIPTION OF THE PLAN (CONTINUED)
Vesting
A participant does not fully vest in Participating Employers’ nondiscretionary matching
contributions made prior to January 1, 2002, Participating Employers’ discretionary profit sharing
contributions and all related earnings until the completion of five years of service, as defined in
the Plan. The participant needs to complete three years of service to fully vest in Participating
Employers’ nondiscretionary matching contributions made after December 31, 2001, and the related
earnings, as defined in the Plan. Participants are fully vested in all contributions upon
retirement, full and permanent disability, or death.
Participants are always fully vested in their participant contributions and related earnings.
Participant Loans
Loans by participants currently are not permitted. Prior to January 2003, participants from
Republic were allowed to obtain loans against their vested account balances. Republic participants
could borrow up to 50% of the vested portion of their accounts, not in excess of $50,000.
Outstanding loans are collateralized by participant accounts. Such loans bear interest at a rate
that approximates market rates and are repayable to the Plan within five years.
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.
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 591/2; 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.
Plan Termination
Although there is no intention to do so, the Company has the right to discontinue contributions and
terminate the Plan subject to the provisions of ERISA. The Plan provides that, in the event of plan
termination, 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.
6
EAGLE MATERIALS INC. HOURLY PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2005
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis of accounting.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
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, except for participant loans, are commingled with the investments of
the Profit Sharing and Retirement Plan of Eagle Materials Inc. (the Eagle Salary Plan) in the Eagle
Materials Inc. Plans Master Trust (the Master Trust). The Master Trust is governed by a trust
agreement with Fidelity Management Trust Company (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 are stated at
fair value as determined by the issuer based on the fair value of the underlying assets in the
fund.
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 market
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, 2005, include Trustee and recordkeeper fees. Fund management fees are charged directly to the
Master Trust and therefore are included in the net change in fair market value of investments for
the Master Trust. Administrative expenses are allocated pro rata to the Plan and the Eagle Salaried
Plan.
Participant loans are recorded at carrying value, which approximates fair value.
Distributions to Participants
Distributions to participants are recorded when paid.
7
EAGLE MATERIALS INC. HOURLY PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2005
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, 2005 and 2004, and the undivided percentage interests the Plan holds in
each of the Master Trust accounts are summarized as follows:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2005 |
|
|
2004 |
|
| |
|
|
|
|
|
Percentage |
|
|
|
|
|
|
Percentage |
|
| |
|
Fair Value |
|
|
Interest |
|
|
Fair Value |
|
|
Interest |
|
| |
|
|
Registered Investment Companies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dreyfus Founders Discovery Class F Fund |
|
$ |
317,490 |
|
|
|
18.8 |
% |
|
$ |
295,838 |
|
|
|
15.9 |
% |
TCW Select Equities Class N Fund |
|
|
127,606 |
|
|
|
62.8 |
% |
|
|
91,203 |
|
|
|
68.6 |
% |
JPMorgan Diversified Mid Cap Growth
Class A Fund |
|
|
1,731,037 |
|
|
|
32.0 |
% |
|
|
1,487,573 |
|
|
|
31.7 |
% |
American Beacon Funds Small Cap Value
Plan Ahead Class Fund |
|
|
332,016 |
|
|
|
15.3 |
% |
|
|
— |
|
|
|
0.0 |
% |
Fidelity Low-Priced Stock Fund |
|
|
4,081,494 |
|
|
|
15.8 |
% |
|
|
3,258,002 |
|
|
|
17.4 |
% |
Fidelity Equity-Income II Fund |
|
|
1,326,296 |
|
|
|
22.8 |
% |
|
|
1,046,982 |
|
|
|
22.3 |
% |
Fidelity Diversified International Fund |
|
|
2,283,825 |
|
|
|
13.9 |
% |
|
|
1,434,069 |
|
|
|
14.7 |
% |
Fidelity Dividend Growth Fund |
|
|
1,773,710 |
|
|
|
27.7 |
% |
|
|
1,507,737 |
|
|
|
25.7 |
% |
Fidelity Freedom Income Fund |
|
|
65,914 |
|
|
|
13.4 |
% |
|
|
2,629 |
|
|
|
0.0 |
% |
Fidelity Freedom 2000 Fund |
|
|
7,337,106 |
|
|
|
49.8 |
% |
|
|
6,712,177 |
|
|
|
50.5 |
% |
Fidelity Freedom 2010 Fund |
|
|
5,807,289 |
|
|
|
16.5 |
% |
|
|
5,225,477 |
|
|
|
16.1 |
% |
Fidelity Freedom 2020 Fund |
|
|
6,032,084 |
|
|
|
13.0 |
% |
|
|
6,333,699 |
|
|
|
12.9 |
% |
Fidelity Freedom 2030 Fund |
|
|
760,874 |
|
|
|
39.6 |
% |
|
|
655,419 |
|
|
|
40.9 |
% |
Fidelity Freedom 2040 Fund |
|
|
417,858 |
|
|
|
45.6 |
% |
|
|
218,990 |
|
|
|
39.3 |
% |
Spartan Extended Market Index Fund |
|
|
1,657,559 |
|
|
|
8.7 |
% |
|
|
1,195,308 |
|
|
|
8.1 |
% |
Spartan U.S. Equity Index Fund |
|
|
4,659,772 |
|
|
|
8.3 |
% |
|
|
4,557,427 |
|
|
|
6.5 |
% |
Fidelity U.S. Bond Index Fund |
|
|
1,736,652 |
|
|
|
23.8 |
% |
|
|
1,606,663 |
|
|
|
19.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40,448,582 |
|
|
|
|
|
|
|
35,629,193 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eagle Materials Common Stock Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eagle Materials Common Stock |
|
|
5,032,134 |
|
|
|
|
|
|
|
3,741,287 |
|
|
|
|
|
Interest-Bearing Cash Equivalent |
|
|
115,873 |
|
|
|
|
|
|
|
98,884 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,148,007 |
|
|
|
18.1 |
% |
|
|
3,840,171 |
|
|
|
16.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Centex Common Stock Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Centex Common Stock |
|
|
1,036,212 |
|
|
|
|
|
|
|
873,264 |
|
|
|
|
|
Interest-Bearing Cash Equivalent |
|
|
10,410 |
|
|
|
|
|
|
|
8,822 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,046,622 |
|
|
|
2.6 |
% |
|
|
882,086 |
|
|
|
2.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common/Collective Investment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fidelity Managed Income Portfolio Fund |
|
|
2,256,318 |
|
|
|
16.4 |
% |
|
|
2,224,862 |
|
|
|
12.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
48,899,529 |
|
|
|
|
|
|
$ |
42,576,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
EAGLE MATERIALS INC. HOURLY PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2005
NOTE 3. INTEREST IN THE MASTER TRUST (CONTINUED)
Net investment income (loss) of the Master Trust accounts for the year ended December 31, 2005, and
the Plan’s share of net investment income (loss) of each Master Trust account is summarized as follows:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Net |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Appreciation |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(Depreciation) in |
|
|
|
|
|
|
Net |
|
|
Share in Net |
|
| |
|
Fair Value of |
|
|
Interest and |
|
|
Investment |
|
|
Investment |
|
| |
|
Investments |
|
|
Dividends |
|
|
Income |
|
|
Income |
|
| |
|
|
Dreyfus Founders Discovery Class F Fund |
|
$ |
1,176 |
|
|
$ |
— |
|
|
$ |
1,176 |
|
|
|
30.4 |
% |
TCW Select Equities Class N Fund |
|
|
1,933 |
|
|
|
— |
|
|
|
1,933 |
|
|
|
160.2 |
% |
JPMorgan Diversified Mid Cap Growth
Class A Fund |
|
|
39,856 |
|
|
|
130,668 |
|
|
|
170,524 |
|
|
|
31.9 |
% |
American Beacon Funds Small Cap Value
Plan Ahead Class Fund |
|
|
1,212 |
|
|
|
15,425 |
|
|
|
16,637 |
|
|
|
7.7 |
% |
Fidelity Low-Priced Stock Fund |
|
|
70,250 |
|
|
|
274,742 |
|
|
|
344,992 |
|
|
|
15.0 |
% |
Fidelity Equity-Income II Fund |
|
|
(52,019 |
) |
|
|
115,715 |
|
|
|
63,696 |
|
|
|
22.0 |
% |
Fidelity Diversified International Fund |
|
|
238,887 |
|
|
|
64,948 |
|
|
|
303,835 |
|
|
|
14.3 |
% |
Fidelity Dividend Growth Fund |
|
|
19,569 |
|
|
|
41,031 |
|
|
|
60,600 |
|
|
|
31.1 |
% |
Fidelity Freedom Income Fund |
|
|
176 |
|
|
|
1,042 |
|
|
|
1,218 |
|
|
|
10.5 |
% |
Fidelity Freedom 2000 Fund |
|
|
92,701 |
|
|
|
208,583 |
|
|
|
301,284 |
|
|
|
50.2 |
% |
Fidelity Freedom 2010 Fund |
|
|
171,540 |
|
|
|
147,157 |
|
|
|
318,697 |
|
|
|
17.3 |
% |
Fidelity Freedom 2020 Fund |
|
|
335,495 |
|
|
|
136,391 |
|
|
|
471,886 |
|
|
|
12.0 |
% |
Fidelity Freedom 2030 Fund |
|
|
40,619 |
|
|
|
14,417 |
|
|
|
55,036 |
|
|
|
35.9 |
% |
Fidelity Freedom 2040 Fund |
|
|
20,906 |
|
|
|
7,855 |
|
|
|
28,761 |
|
|
|
43.8 |
% |
Spartan Extended Market Index Fund |
|
|
124,758 |
|
|
|
20,312 |
|
|
|
145,070 |
|
|
|
8.1 |
% |
Spartan U.S. Equity Index Fund |
|
|
141,860 |
|
|
|
80,063 |
|
|
|
221,923 |
|
|
|
8.2 |
% |
Fidelity U.S. Bond Index Fund |
|
|
(33,598 |
) |
|
|
73,243 |
|
|
|
39,645 |
|
|
|
22.0 |
% |
Eagle Materials Common Stock Fund |
|
|
1,571,687 |
|
|
|
— |
|
|
|
1,571,687 |
|
|
|
18.0 |
% |
Centex Common Stock Fund |
|
|
177,352 |
|
|
|
— |
|
|
|
177,352 |
|
|
|
2.8 |
% |
Fidelity Managed Income Portfolio Fund |
|
|
— |
|
|
|
78,618 |
|
|
|
78,618 |
|
|
|
14.0 |
% |
| |
|
|
|
|
|
|
|
|
$ |
2,964,360 |
|
|
$ |
1,410,210 |
|
|
$ |
4,374,570 |
|
|
|
|
|
| |
|
|
|
|
|
|
9
EAGLE MATERIALS INC. HOURLY PROFIT SHARING PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2005
NOTE 3. INTEREST IN THE MASTER TRUST (CONTINUED)
The Plan invests 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 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 has indicated that it will take the necessary steps, if
any, to bring the Plan’s operations into compliance with the Code.
NOTE 5. RELATED PARTY TRANSACTIONS
Certain plan investments in the registered investment companies, the common/collective trust fund,
and the interest-bearing cash equivalent portion of the Eagle Materials Common Stock Fund 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. SUBSEQUENT EVENT
On January 19, 2006, the Board of Directors of the Company approved an employer profit sharing
contribution to the Plan. The total contribution was $504,999, net of applied forfeitures of
$70,000, which was remitted to the Master Trust in March, 2006.
10
EAGLE MATERIALS INC. HOURLY PROFIT SHARING PLAN
SCHEDULE
H; LINE 4a — SCHEDULE OF DELINQUENT PARTICIPANT CONTRIBUTIONS
EIN#: 75-2520779
PLAN #: 001
YEAR ENDED DECEMBER 31, 2005
| |
|
|
| Participant Contributions |
|
Total that Constitute Nonexempt |
| Transferred Late to Plan |
|
Prohibited Transactions |
| |
| $3,855
|
|
$3,855 |
11
EAGLE MATERIALS INC. HOURLY PROFIT SHARING PLAN
SCHEDULE
H; LINE 4i — SCHEDULE OF ASSETS (HELD AT END OF YEAR)
EIN#: 75-2520779
PLAN #: 001
DECEMBER 31, 2005
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
(c) |
|
|
|
|
|
|
| |
|
|
|
|
|
Description of Investment, |
|
|
|
|
|
|
| |
|
(b) |
|
Including Maturity Date, |
|
|
|
|
|
(e) |
| |
|
Identity of Issue, Borrower, |
|
Rate of Interest, Collateral, |
|
(d) |
|
Current |
| (a) |
|
Lessor, or Similar Party |
|
Par, or Maturity Value |
|
Cost |
|
Value |
| |
* |
|
Participant loans |
|
Interest rates from 5.75% to 10.00% |
|
$ |
— |
|
|
$ |
5,352 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
— |
|
|
$ |
5,352 |
|
| |
|
|
|
|
|
|
|
|
|
|
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 29, 2006
|
|
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 |