e11vk
Table of Contents

 
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
ANNUAL REPORT
     
þ   ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the fiscal year ended December 31, 2005
OR
     
o   TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 1-13884
A.   Full title of the Plan and the address of the Plan, if different from that of the issuer named below:
INDIVIDUAL ACCOUNT RETIREMENT PLAN FOR BARGAINING
UNIT EMPLOYEES AT THE COOPER CAMERON CORPORATION
BUFFALO, NEW YORK PLANT
B.   Name of issuer of the securities held pursuant to the Plan and the address of the principal executive office:
CAMERON INTERNATIONAL CORPORATION
1333 West Loop South, Suite 1700
Houston, Texas 77027

 


Table of Contents

Financial Statements
Individual Account Retirement Plan for Bargaining Unit Employees at the Cooper Cameron Corporation, Buffalo, New York Plant
As of December 31, 2005 and 2004 and for the year ended December 31, 2005

 


 

Individual Account Retirement Plan for Bargaining Unit
Employees at the Cooper Cameron Corporation,
Buffalo, New York Plant
Financial Statements
As of December 31, 2005 and 2004 and for the year ended December 31, 2005
Contents
         
    1  
 
       
Audited Financial Statements
       
 
       
    2  
    3  
    4  
    12  
 Consent of Independent Registered Public Accounting Firm

 


Table of Contents

Report of Independent Registered Public Accounting Firm
To Participants and Plans Administration Committee
Individual Account Retirement Plan for Bargaining Unit Employees at the
     Cooper Cameron Corporation, Buffalo, New York Plant
     We have audited the accompanying statements of net assets available for benefits of the Individual Account Retirement Plan for Bargaining Unit Employees at the Cooper Cameron Corporation, Buffalo, New York Plant (the “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. The Plan is not required to have, nor were we engaged to perform an audit of its internal control over financial reporting. Our audit 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 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 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 accounting principles generally accepted in the United States of America.
/s/ Grant Thornton LLP
Houston, Texas
June 8, 2006

 


Table of Contents

Individual Account Retirement Plan for Bargaining
Unit Employees at the Cooper Cameron Corporation,
Buffalo, New York Plant
Statements of Net Assets Available for Benefits
                 
    December 31,  
    2005     2004  
Assets
               
Employer contributions receivable
  $ 55,877     $ 57,547  
Plan interest in Cooper Cameron Corporation Master Trust for Defined Contribution Plans
    15,706,040       13,319,747  
     
Net assets available for benefits
  $ 15,761,917     $ 13,377,294  
     
The accompanying notes are an integral part of these statements.

2


Table of Contents

Individual Account Retirement Plan for Bargaining
Unit Employees at the Cooper Cameron Corporation,
Buffalo, New York Plant
Statement of Changes in Net Assets Available for Benefits
Year ended December 31, 2005
         
Additions:
       
Employer contributions
  $ 557,266  
Employee contributions
    659,947  
Rollovers
    16,914  
Investment gain from Cooper Cameron Corporation Master Trust for Defined Contribution Plans
    1,358,514  
 
     
Total additions
    2,592,641  
 
       
Deductions:
       
Administrative fees
    (24,122 )
Benefits paid to participants
    (183,896 )
 
     
Total deductions
    (208,018 )
 
     
 
       
Net increase
    2,384,623  
 
       
Net assets available for benefits at:
       
Beginning of year
    13,377,294  
 
     
End of year
  $ 15,761,917  
 
     
The accompanying notes are an integral part of these statements.

3


Table of Contents

Individual Account Retirement Plan for Bargaining
Unit Employees at the Cooper Cameron Corporation,
Buffalo, New York Plant
Notes to Financial Statements
December 31, 2005
1. Description of the Plan
The Individual Account Retirement Plan for Bargaining Unit Employees at the Cooper Cameron Corporation, Buffalo, New York Plant (the “Plan”) is a profit-sharing plan which provides payments to eligible employees of Cooper Cameron Corporation and certain subsidiaries (the “Company”) at termination, retirement, death or disability. All union employees of the Company belonging to Local Lodge No. 330, District 76 of the International Association of Machinists and Aerospace Workers, are eligible for participation. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”).
The Company contributes to each participant’s account monthly based on hours actively worked and specific contribution rates as defined in the plan document. Contributions are also made for each hour incurred for overtime, vacations or holidays, but excludes sick time for which the employee may be paid. Company contributions are allocated among the investment fund options that have been selected by each employee. Vesting in employer contributions is on a graduated scale with 100% vesting at five years.
Amounts which are forfeited due to a participant’s termination of employment prior to vesting in employer contributions made on the participant’s behalf are used to reduce the required Company contribution in subsequent periods. In 2005, forfeited nonvested amounts totaling $6,697 were used to reduce employer contributions. Upon termination of the Plan, all remaining forfeitures are to be allocated to the participant accounts.
The Plan allows for employee contributions based on hours actively worked and elected contribution rates. Electing to contribute is voluntary, and these contributions are immediately 100% vested. Participants may elect to have their contributions allocated in 1% increments to one or more of the investment fund options offered by the Plan. Allocations among the investment accounts may be changed at the participant’s discretion on a daily basis.
Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of plan termination, participants would become 100% vested in their employer contributions.

4


Table of Contents

Individual Account Retirement Plan for Bargaining
Unit Employees at the Cooper Cameron Corporation,
Buffalo, New York Plant
Notes to Financial Statements (continued)
1. Description of the Plan (continued)
More detailed information about the Plan, including the funding, vesting and benefit provisions, is contained in the Summary Plan Description. A copy of this pamphlet is available at the Company’s corporate office.
2. Significant Accounting Principles
Accounting Principles
The accompanying financial statements of the Plan have been prepared on the accrual basis of accounting.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates that affect amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
Employer profit-sharing contributions are recorded in the period in which the related employee services are rendered.
Benefit payments to participants are recorded upon distribution.
Investments
The Plan’s investments are held in the Cooper Cameron Corporation Master Trust for Defined Contribution Plans (the “Master Trust”). Nationwide Trust Company is the trustee. The Plan participates in only certain investment accounts of the Master Trust. The following is a summary of those investment accounts and the Plan’s beneficial interest in those investment accounts as of December 31, 2005 and 2004.

5


Table of Contents

Individual Account Retirement Plan for Bargaining
Unit Employees at the Cooper Cameron Corporation,
Buffalo, New York Plant
Notes to Financial Statements (continued)
2. Significant Accounting Principles (continued)
                 
    Beneficial Interest at
    December 31,
    2005   2004
     
Cooper Cameron Stock Fund
    0.69 %     0.47 %
Fidelity Growth Company Fund
    100.00       100.00  
PRIMCO Stable Value Fund
    4.25       3.91  
State Street Bank S&P 500 Index Fund
    2.35       2.34  
PIMCO Total Return Administrative Shares Fund
    5.20       5.33  
Washington Mutual Investors Fund/A
    5.32       5.00  
Growth Fund of America/A
    3.61       3.56  
Franklin Balance Sheet Investment Fund/A
    4.12       3.80  
Lord Abbett Developing Growth Fund/A
    4.24       4.10  
EuroPacific Growth Fund/A
    4.47       4.19  
Purchases and sales of securities by the Master Trust are recorded on a trade-date basis. Interest income is recorded as earned. Dividends are recorded as of the ex-dividend date.
The Master Trust’s investments in securities traded on national securities exchanges or in the over-the-counter market are stated at fair value which equals their quoted market price on the last business day of the plan year. Investments in money market funds are stated at cost, which approximates fair value.
The PRIMCO Stable Value Fund is a master trust investment account managed by AMVESCAP National Trust Company, an affiliate of INVESCO Institutional (N.A.), Inc., the trustee of the INVESCO Group Trust for Retirement Savings, a Common Collective Trust, in which the assets of multiple qualified plans are invested. The Stable Value Fund invests in actively managed synthetic bank and insurance company investment contracts and in guaranteed investment contracts. These contracts have varying yields and maturity dates, are fully benefit responsive and are therefore stated at contract value. Contract value represents cost plus accrued income. Although it is management’s intention to hold the investment contracts until maturity, certain investment contracts provide for adjustments to contract value for withdrawals made prior to maturity.

6


Table of Contents

Individual Account Retirement Plan for Bargaining
Unit Employees at the Cooper Cameron Corporation,
Buffalo, New York Plant
Notes to Financial Statements (continued)
2. Significant Accounting Principles (continued)
Risks and Uncertainties
The Master Trust provides for various investments which, in general, are exposed to interest rate, credit and overall market volatility risks. Due to the level of risk associated with certain investment securities, it is likely that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the statements of net assets available for benefits and individual participant account balances.
3. Separate Investment Accounts of the Cooper Cameron Corporation Master Trust
The purpose of the Master Trust is the collective investment of the assets of participating employee benefit plans of the Company. Master Trust assets are allocated among participating plans by assigning to each plan those transactions (primarily contributions, participant loan transactions, benefit payments and certain administrative expenses) which can be specifically identified and by allocating among all plans, in proportion to the fair value of the assets assigned to each plan, the income and expenses resulting from the collective investment of the assets. The Master Trust includes assets of other employee benefit plans in addition to this Plan.

7


Table of Contents

     
Individual Account Retirement Plan for Bargaining Unit Employees at the Cooper Cameron Corporation, Buffalo, New York Plant
Notes to Financial Statements (continued)
3. Separate Investment Accounts of the Cooper Cameron Corporation Master Trust (continued)
The following table presents the fair value of investments for the separate investment accounts of the Master Trust:
                                                                                                 
    Cooper   Washington                                   Fidelity   PIMCO Total   Franklin   Lord Abbett        
    Cameron   Mutual   PRIMCO                   State Street   Growth   Return   Balance Sheet   Developing   EuroPacific    
    Stock   Investors   Stable Value   Growth Fund   Real Estate   Bank S&P 500   Company   Administrative   Investment   Growth   Growth    
December 31, 2005   Fund   Fund/A   Fund   of America/A   Fund   Index Fund   Fund   Shares Fund   Fund/A   Fund/A   Fund/A   Total
     
Assets:
                                                                                               
Cash
  $ 176,878     $     $     $     $     $     $     $     $     $     $     $ 176,878  
Net unsettled sales of investments
    79,616                                                                   79,616  
Income receivable
    2,346,558                                                                   2,346,558  
Investments at fair value as determined by quoted market prices:
                                                                                               
Money market funds
    335,385                         484,543                                           819,928  
Cash Management Trust of America
                1,615,148                                                       1,615,148  
Cooper Cameron Corporation Common Stock
    103,353,527                                                                   103,353,527  
Washington Mutual Investors Fund/A
          42,556,162                                                             42,556,162  
Growth Fund of America/A
                      37,949,712                                                 37,949,712  
Fidelity Growth Company Fund
                                        2,052,653                               2,052,653  
State Street Bank S&P 500 Index Fund
                                  25,571,523                                     25,571,523  
PIMCO Total Return Administrative Shares Fund
                                              45,375,946                         45,375,946  
Franklin Balance Sheet Investment Fund/A
                                                    39,092,396                   39,092,396  
Lord Abbett Developing Growth Fund/A
                                                          16,881,036             16,881,036  
EuroPacific Growth Fund/A
                                                                28,745,614       28,745,614  
Investments at estimated fair value or contract value:
                                                                                               
INVESCO Group Trust for Retirement Savings
                62,735,056                                                       62,735,056  
Participant loans
    9,367,134                                                                   9,367,134  
Real estate
                            165,000                                           165,000  
     
Total investments
    113,056,046       42,556,162       64,350,204       37,949,712       649,543       25,571,523       2,052,653       45,375,946       39,092,396       16,881,036       28,745,614       416,280,835  
     
Total assets
    115,659,098       42,556,162       64,350,204       37,949,712       649,543       25,571,523       2,052,653       45,375,946       39,092,396       16,881,036       28,745,614       418,883,887  
 
Liabilities:
                                                                                               
Other payables
    123,681                                                                   123,681  
Net unsettled purchases of investments
    393,730                                                                   393,730  
     
Net assets available to participating plans
  $ 115,141,687     $ 42,556,162     $ 64,350,204     $ 37,949,712     $ 649,543     $ 25,571,523     $ 2,052,653     $ 45,375,946     $ 39,092,396     $ 16,881,036     $ 28,745,614     $ 418,366,476  
     

8


Table of Contents

     
Individual Account Retirement Plan for Bargaining Unit Employees at the Cooper Cameron Corporation, Buffalo, New York Plant
Notes to Financial Statements (continued)
3. Separate Investment Accounts of the Cooper Cameron Corporation Master Trust (continued)
The following table presents the fair value of investments for the separate investment accounts of the Master Trust:
                                                                                                 
    Cooper   Washington                                           PIMCO Total   Franklin   Lord Abbett        
    Cameron   Mutual   PRIMCO                   State Street       Return   Balance Sheet   Developing   EuroPacific    
    Stock   Investors   Stable Value   Growth Fund   Real Estate   Bank S&P 500   Fidelity Growth   Administrative   Investment   Growth   Growth    
December 31, 2004   Fund   Fund/A   Fund   of America/A   Fund   Index Fund   Company Fund   Shares Fund   Fund/A   Fund/A   Fund/A   Total
     
Assets:
                                                                                               
Cash
  $ 191,066     $     $     $     $     $     $     $     $     $     $     $ 191,066  
Net unsettled sales of investments
    495,538                                                                   495,538  
Investments at fair value as determined by quoted market prices:
                                                                                               
Money market funds
    8,598                         516,774                                           525,372  
Cash Management Trust of America
                2,080,481                                                       2,080,481  
Cooper Cameron Corporation Common Stock
    74,793,909                                                                   74,793,909  
Washington Mutual Investors Fund/A
          38,026,641                                                             38,026,641  
Growth Fund of America/A
                      30,292,833                                                 30,292,833  
Fidelity Growth Company Fund
                                        2,196,529                               2,196,529  
State Street Bank S&P 500 Index Fund
                                  24,483,767                                     24,483,767  
PIMCO Total Return Administrative Shares Fund
                                              40,780,366                         40,780,366  
Franklin Balance Sheet Investment Fund/A
                                                    32,029,520                   32,029,520  
Lord Abbett Developing Growth Fund/A
                                                          12,513,676             12,513,676  
EuroPacific Growth Fund/A
                                                                20,577,690       20,577,690  
Investments at estimated fair value or contract value:
                                                                                               
Investment contracts
                4,161,490                                                       4,161,490  
INVESCO Group Trust for Employee Benefit Plans
                55,363,729                                                       55,363,729  
Real estate
                            165,000                                           165,000  
     
Total investments
    74,802,507       38,026,641       61,605,700       30,292,833       681,774       24,483,767       2,196,529       40,780,366       32,029,520       12,513,676       20,577,690       337,991,003  
     
Total assets
    75,489,111       38,026,641       61,605,700       30,292,833       681,774       24,483,767       2,196,529       40,780,366       32,029,520       12,513,676       20,577,690       338,677,607  
 
                                                                                               
Liabilities:
                                                                                               
Other payables
    53,824                                                                   53,824  
Net unsettled purchases of investments
    160,927                                                                   160,927  
     
Net assets available to participating plans
  $ 75,274,360     $ 38,026,641     $ 61,605,700     $ 30,292,833     $ 681,774     $ 24,483,767     $ 2,196,529     $ 40,780,366     $ 32,029,520     $ 12,513,676     $ 20,577,690     $ 338,462,856  
     

9


Table of Contents

Individual Account Retirement Plan for Bargaining
Unit Employees at the Cooper Cameron Corporation,
Buffalo, New York Plant
Notes to Financial Statements (continued)
3. Separate Investment Accounts of the Cooper Cameron Corporation Master Trust (continued)
Investment income and the net realized and unrealized appreciation (depreciation) in fair value of the investments held throughout the year or bought and sold during the year in the separate investment accounts of the Master Trust are as follows:
                         
    Net        
    Appreciation   Interest and    
Year ended December 31, 2005   (Depreciation)   Dividends   Total
     
Cooper Cameron Stock Fund
  $ 36,076,659     $ 10,272     $ 36,086,931  
Fidelity Growth Company Fund
    216,651       392       217,043  
PRIMCO Stable Value Fund
          3,069,199       3,069,199  
PIMCO Total Return Administrative Shares Fund
    (787,319 )     1,918,764       1,131,445  
Washington Mutual Investors Fund/A
    110,371       1,388,870       1,499,241  
Growth Fund of America/A
    4,190,945       504,565       4,695,510  
Franklin Balance Sheet Investment Fund/A
    2,089,468       1,775,967       3,865,435  
Lord Abbett Developing Growth Fund/A
    1,556,293       198,972       1,755,265  
EuroPacific Growth Fund/A
    3,550,487       1,361,028       4,911,515  
Real Estate Fund
          12,534       12,534  
State Street Bank S&P 500 Index Fund
    1,169,278             1,169,278  
     
 
  $ 48,172,833     $ 10,240,563     $ 58,413,396  
     
Administrative expenses paid by the Master Trust and allocated to the participating plans totaled $424,415 for the year ended December 31, 2005.
PRIMCO Stable Value Fund (“Stable Value Fund”)
The Stable Value Fund invests in actively managed synthetic bank and insurance company investment contracts (“SICs”) and in guaranteed investment contracts (“GICs”). The GICs are promises by insurance companies or banks to repay the principal plus accrued income at contract maturity. SICs differ from GICs in that the assets supporting the SICs are owned by the Master Trust. A bank or insurance company issues a wrapper contract that allows participant-directed transactions to be made at contract value. Wrapper contracts are valued as the difference between the fair value of the supporting assets and the contract value.

10


Table of Contents

Individual Account Retirement Plan for Bargaining Unit Employees
at the Cooper Cameron Corporation,
Buffalo, New York Plant
Notes to Financial Statements (continued)
3. Separate Investment Accounts of the Cooper Cameron Corporation Master Trust (continued)
Interest crediting rates on the GICs in the Stable Value Fund are generally determined at the time of purchase. Interest crediting rates on the SICs are reset periodically based on the yields of the supporting assets. At December 31, 2005, the interest crediting rates for all investment contracts ranged from 3.8% to 5.7%. At December 31, 2004, the interest crediting rates for all investment contracts ranged from 1.70% to 6.99%.
For 2005 and 2004, the average annual yields for the investment contracts in the Stable Value Fund were 4.79% and 4.62%, respectively. At December 31, 2005 and 2004, fair value of the investment contracts in the Stable Value Fund was estimated to be approximately 99.46% and 102% of contract value, respectively. Fair value of the GICs is estimated by discounting the weighted average of the Stable Value Fund’s cash flows at the then-current interest crediting rate for a comparable maturity investment contract. Fair value of the SICs is based on the market value of the assets supporting the SICs.
4. Income Tax Status
The Plan has been designed to meet the requirements of the Internal Revenue Code (“IRC”) under Section 401(a) and, therefore, the related trust is exempt from taxation. A favorable determination letter was received from the Internal Revenue Service on September 3, 2002. Since receiving the determination letter, the Plan has been amended. Once qualified, the Plan is required to operate in conformity with the IRC to maintain its qualification. The plan administrator believes the Plan is being operated in compliance with the applicable requirements of the IRC and, therefore, believes that the Plan, as amended, continues to be qualified and the related trust remains tax exempt.
5. Subsequent Events
On May 5, 2006, the stockholders of the Company approved a change in the Company’s name to Cameron International Corporation.

11


Table of Contents

SIGNATURE
     The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the members of the Plans Administration Committee have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
INDIVIDUAL ACCOUNT RETIREMENT PLAN FOR BARGAINING
UNIT EMPLOYEES AT THE COOPER CAMERON CORPORATION
BUFFALO, NEW YORK PLANT
         
/s/ Jane C. Schmitt    
     
By:
  Jane C. Schmitt    
 
  Member of the Plans Administration    
 
  Committee    
 
       
Date: June 26, 2006

12


Table of Contents

Exhibit Index
     
Exhibit 23
  CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM