Form 11-K
Table of Contents

 

 

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 1-5828

 

 

SAVINGS PLAN OF

CARPENTER TECHNOLOGY CORPORATION

(Full title of the plan)

 

 

CARPENTER TECHNOLOGY CORPORATION

(Name of issuer of the securities held pursuant to the plan)

 

 

P.O. Box 14662

Reading, Pennsylvania

(Address of principal executive office of the issuer)

 

 

 


Table of Contents

Financial Statements and Exhibits

 

(a) Financial Statements

The financial statements filed as part of this report are listed in the Index to Financial Statements included herein.

 

(b) Exhibits

23.1 Consent of Independent Registered Public Accounting Firm

 

1


Table of Contents

SAVINGS PLAN OF CARPENTER TECHNOLOGY CORPORATION

INDEX TO FINANCIAL STATEMENTS

FORM 11-K ANNUAL REPORT

 

     Form 11-K
Pages

Report of Independent Registered Public Accounting Firm

   3

Financial Statements:

  

Statements of Net Assets Available for Benefits as of December 31, 2007 and 2006

   4

Statements of Changes in Net Assets Available for Benefits for the Years Ended December 31, 2007 and 2006

   5

Notes to Financial Statements

   6-14

Supplementary Schedule:

  

Schedule of Assets (Held at End of Year)

   15-16

 

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Table of Contents

Report of Independent Registered Public Accounting Firm

To the Participants and Administrator of

the Savings Plan of Carpenter Technology Corporation

Reading, Pennsylvania

We have audited the accompanying statements of net assets available for benefits of the Savings Plan of Carpenter Technology Corporation (Plan) as of December 31, 2007 and 2006 and the related statements of changes in net assets available for benefits for the years then ended. 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. An audit includes 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 Savings Plan of Carpenter Technology Corporation as of December 31, 2007 and 2006, and the changes in net assets available for benefits for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary schedule of assets (held at end of year) as of December 31, 2007 is presented for the purpose 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. This supplementary schedule is the responsibility of the Plan’s management. The supplementary schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

 

/s/ Beard Miller Company LLP

 

Beard Miller Company LLP
Reading, Pennsylvania
June 24, 2008

 

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Table of Contents

Savings Plan of Carpenter Technology Corporation

 

Statements of Net Assets Available for Benefits

December 31, 2007 and 2006

 

Dollars in thousands

   2007    2006
Assets      

Investments, at fair value

   $ 511,595    $ 401,773

Receivables:

     

Participant contribution

     544      457

Employer contribution

     182      174
             

Total receivables

     726      631
             

Net assets reflecting all investments at fair value

     512,321      402,404

Adjustment from fair value to contract value for fully benefit-responsive investment contracts

     278      985
             

Net assets available for benefits

   $ 512,599    $ 403,389
             

 

See notes to financial statements.   4


Table of Contents

Savings Plan of Carpenter Technology Corporation

 

Statements of Changes in Net Assets Available for Benefits

Years Ended December 31, 2007 and 2006

 

Dollars in thousands

   2007    2006
Additions      

Investment Income:

     

Net appreciation in fair value of investments

   $ 32,199    $ 42,252

Interest and dividends

     20,337      13,822
             
     52,536      56,074
             

Contributions:

     

Participant

     12,617      11,512

Participant Rollover

     1,534      1,762

Employer

     5,187      4,953
             
     19,338      18,227
             

Transfers in (Note 1)

     63,844      —  
             

Total additions

     135,718      74,301
             
Deductions      

Benefits paid to participants

     26,214      23,501

Administrative expenses

     294      167
             

Total deductions

     26,508      23,668
             

Net increase

     109,210      50,633
             

Net assets available for benefits - beginning of year

     403,389      352,756
             

Net assets available for benefits - end of year

   $ 512,599    $ 403,389
             

 

See notes to financial statements.   5


Table of Contents

Savings Plan of Carpenter Technology Corporation

 

Notes to Financial Statements

December 31, 2007 and 2006

Note 1 - Description of Plan

The following description of the Savings Plan of Carpenter Technology Corporation (the “Plan”) provides only general information. A more comprehensive description of the Plan’s provisions can be found in the Plan document, which is available to participants upon request from Carpenter Technology Corporation, or any participating affiliate (collectively referred to as the “Company”).

General

The Plan is a profit-sharing and stock bonus plan which covers substantially all domestic non union employees of the Company. It is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended.

Transfers In

As a result of the Company’s decision to spin off and merge into the Plan a portion of the Employee Stock Ownership Plan of Carpenter Technology Corporation, a qualified plan, assets of certain participants in that plan, having a fair value of $63,844,000, were transferred into the Plan on March 19, 2007. Upon transfer, participants may direct these assets to the investment fund(s) of their choice.

Contributions

Each year, participants may contribute up to 35% of annual compensation on a pretax basis, and up to 35% of annual compensation on an after-tax basis, as defined in the Plan. The combined contributions cannot exceed 35% of total compensation. Participants who are age 50 or older may make “catch-up contributions”, which are additional pretax contributions. Participants may also contribute amounts representing distributions from other qualified pension plans. The Company contributes an amount equal to 3% of each employee’s base pay. Contributions are subject to certain limitations.

Participant’s Accounts

Several accounts are maintained for each participant, which are participant directed, as follows:

 

   

Employee pretax salary deferral account - credited with participant before tax contributions

 

   

Employee after tax account - credited with participant after tax contributions

 

   

Company basic contribution account - credited with Company contributions

 

   

Rollover contribution account - credited with participant rollover contributions

 

   

Interplan transfer accounts - credited with transfers from other Carpenter Plans

 

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Table of Contents

Savings Plan of Carpenter Technology Corporation

 

Notes to Financial Statements

December 31, 2007 and 2006

 

Note 1 - Description of Plan (Continued)

 

Vesting

All contributions and Plan earnings thereon are 100% vested and nonforfeitable.

Participant Loans

Loans are available from various participant accounts in a particular hierarchy for active employees of the Company. Participants are subject to certain restrictions on their number of loans, amount and terms of repayment. Interest is charged at the prime rate for commercial lenders at the time the loan is initiated, plus 1%. Loan repayments are required with each pay, and payment in full is required at the time of the participant’s separation from service.

Benefits Paid to Participants

Benefits paid to participants include participant distributions and withdrawals. Participants are entitled to a lump sum distribution upon separation from service. Upon separation, a participant may elect to defer such distribution, provided the account balance is at least $5,000. The total distribution of benefits to all separated participants must occur by April 15 of the year following the year in which the participant attains age 70 1/2. Hardship and non-hardship in-service withdrawals, and withdrawals after age 59 1/2 are permitted subject to certain restrictions. Benefits paid to participants are in cash, except that distribution of accounts which consist of investments in the Carpenter Technology Stock Fund shall be made in shares of the Company’s common stock or cash, at the participant’s option.

Administrative Expenses

Investment management fees, trustee fees, and transaction fees are paid by the Plan. A portion of these fees are netted against investment income. All other fees are paid by the Company.

Plan Termination

The Company has the right under the Plan to discontinue or change its contributions at any time and to terminate the Plan subject to the provisions of ERISA and any contractual obligations.

Note 2 - Summary of Significant Accounting Policies

Basis of Accounting

The financial statements of the Plan are prepared under the accrual method of accounting.

 

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Table of Contents

Savings Plan of Carpenter Technology Corporation

 

Notes to Financial Statements

December 31, 2007 and 2006

 

Note 2 - Summary of Significant Accounting Policies (Continued)

 

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and changes therein, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

Investment Valuation and Income Recognition

The Plan’s investments in registered investment companies and employer securities are stated at fair value, by reference to quoted market prices. Participant loans are valued at cost, which approximates fair value.

The Plan accounts for fully benefit-responsive investment contracts in accordance with FASB Staff Position AAG INV-1 and SOP 94-4-1, Reporting of Fully Benefit-Responsive Investment Contracts held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined-Contribution Health and Welfare and Pension Plans (the “FSP”). The FSP defines the circumstances in which an investment contract is considered fully benefit-responsive and provides certain reporting and disclosure requirements for fully benefit-responsive investment contracts in defined contribution plans. As required by the FSP, investments in the accompanying Statements of Net Assets Available for Benefits include fully benefit-responsive investment contracts recognized at fair value. AICPA Statement of Position

94-4-1, Reporting of Investment Contracts Held by Health and Welfare Benefit Plans and Defined Contribution Pension Plans, as amended, requires fully benefit-responsive investment contracts to be reported at fair value in the Plan’s Statement of Net Assets Available for Benefits with a corresponding adjustment to reflect these investments at contract value.

The common collective trust funds are valued at unit value, which represents fair value of the underlying assets. The fair value of the underlying assets which are deemed fully benefit-responsive investment contracts is calculated by discounting the related cash flows based on current yields of similar investments with comparable durations.

Purchases and sales of investments are recorded on a trade-date basis. Gain or loss on sales of investments is based on average cost. Dividend income is recorded on the ex-dividend date. Income from other investments is recorded as earned on an accrual basis.

 

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Table of Contents

Savings Plan of Carpenter Technology Corporation

 

Notes to Financial Statements

December 31, 2007 and 2006

 

Note 2 - Summary of Significant Accounting Policies (Continued)

 

Investment Valuation and Income Recognition (Continued)

 

The net appreciation or depreciation in the fair value of investments in the statements of changes in net assets available for benefits consists of realized gains and losses and unrealized appreciation and depreciation on investments.

Payment of Benefits

Benefits are recorded when paid.

Investment Risks

Investments are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investments and the level of uncertainty related to changes in the value of investments, it is reasonably possible that changes in these risks in the near term could materially affect the amounts reported in participant account balances, and in the statements of net assets available for benefits.

New Accounting Pronouncements

In September 2006, the Financial Accounting Standards Board issued Statement on Financial Accounting Standards No. 157 (“SFAS 157”), Fair Value Measurements. SFAS 157 establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurement. SFAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007. The Company does not believe the adoption of SFAS 157 will have a material impact on the Plan’s financial statements, but will require expanded disclosures in the notes to the financial statements.

Note 3 - Investments

The following table presents fair value of investments at December 31:

 

Dollars in thousands

   2007    2006

Registered investment companies, as determined by quoted market prices

   $ 328,618    $ 267,429

Employer securities, as determined by quoted market prices

     84,530      45,099

Common collective trust*

     86,612      78,985

Participant loans (at cost, which approximates fair value)

     11,835      10,260
             
   $ 511,595    $ 401,773
             

 

* Contract value (in thousands) at December 31, 2007 and 2006, respectively, is $86,890 and $79,970.

 

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Savings Plan of Carpenter Technology Corporation

 

Notes to Financial Statements

December 31, 2007 and 2006

 

Note 3 - Investments (Continued)

 

The following table presents investments that represent 5% or more of the Plan’s net assets at December 31:

 

Dollars in thousands

   2007     2006  

Standish Mellon Stable Value Fund*

   $ 86,612     $ 78,985  

Carpenter Technology Stock Fund

     84,530       45,099  

Vanguard 500 Index Fund

     72,667       71,428  

American Funds EuroPacific Growth Fund

     45,842       28,012  

Dodge & Cox Stock Fund

     33,256       34,602  

Vanguard Mid-Cap Index Fund

     31,747       23,729  

PIMCO Total Return Fund

     26,585       * *

American Balanced Fund

     * *     20,396  

 

* Contract value (in thousands) at December 31, 2007 and 2006, respectively, is $86,890 and $79,970.
** Fund does not represent 5% or more of the Plan’s net assets at December 31 of the year indicated.

During 2007 and 2006, the Plan’s investments (including realized gains and losses on investments bought and sold, as well as unrealized appreciation and depreciation on investments held during the year) appreciated in value, as follows:

 

Dollars in thousands

   2007    2006

Employer securities

   $ 29,525    $ 20,331

Registered investment companies

     2,674      21,921
             
   $ 32,199    $ 42,252
             

Note 4 - Reconciliation of Financial Statements to Form 5500

The following is a reconciliation of investments per the financial statements to the Form 5500:

 

Dollars in thousands

   December 31,
   2007    2006

Investments, at fair value, per the financial statements

   $ 511,595    $ 401,773

Adjustment from fair value to contract value for fully benefit-responsive investment contracts

     278      985
             

Investments, at contract value, per Form 5500

   $ 511,873    $ 402,758
             

 

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Table of Contents

Savings Plan of Carpenter Technology Corporation

 

Notes to Financial Statements

December 31, 2007 and 2006

Note 5 - Standish Mellon Stable Value Fund

The Plan invests in the Standish Mellon Stable Value Fund (the “Fund”), which is a common collective trust fund. This fund is only available to participants of the Plan. The underlying assets of the Fund are as follows at December 31:

 

Dollars in thousands

2007

   Major
Credit
Ratings
   Investment
at Fair
Value
   Wrapper
Contract at
Fair Value
    Adjustment
to Contract
Value
    Investment
at Contract
Value

Insurance Company General Accounts:

            

Canada Life (P46145)

   AA/Aa3    $ 1,003    $ —       $ —       $ 1,003

Canada Life (P46151)

   AA/Aa3      709      —         —         709

Natixis Financial Products, Inc.

   AA+/Aa1      20,947      (11 )     208       21,144

Monumental Life Aegon (MDA00572TR)

   AA+/Aa1      18,735      (3 )     142       18,874

Ohio National

   AA/A1      853      —         —         853

Principal Life

   AA/Aa2      868      —         —         868

Protective Life

   AA/Aa3      870      —         —         870
                                
        43,985      (14 )     350       44,321
                                

Other (Buy-Hold Synthetic Contracts):

            

Rabobank

   AAA/Aaa      7,357      1       (12 )     7,346

Bank of America, N.A.

   AAA/Aaa      12,683      (1 )     29       12,711

JP Morgan Chase Bank (Cartech03)

   AAA/Aaa      1,135      —         (1 )     1,134

JP Morgan Chase Bank (Cartech02)

   AAA/Aaa      395      —         (3 )     392

Monumental Life Aegon (MDA00201TR3)

   AAA/Aaa      186      —         (6 )     180

UBS AG

   AAA/Aaa      14,942      (1 )     (79 )     14,862
                                
        36,698      (1 )     (72 )     36,625
                                

Interest Bearing Cash:

            

Mellon Bank (STIF)

   N/A      5,944      —         —         5,944
                                
        5,944      —         —         5,944
                                

Total Fund

      $ 86,627    $ (15 )   $ 278     $ 86,890
                                

 

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Savings Plan of Carpenter Technology Corporation

 

Notes to Financial Statements

December 31, 2007 and 2006

 

Note 5 - Standish Mellon Stable Value Fund (Continued)

 

Dollars in thousands

2006

   Major
Credit
Ratings
   Investment
at Fair
Value
   Wrapper
Contract at
Fair Value
    Adjustment
to Contract
Value
    Investment
at Contract
Value

Insurance Company General Accounts:

            

Canada Life (P46145)

   AA/Aa3    $ 1,982    $ —       $ 13     $ 1,995

Canada Life (P46151)

   AA/Aa3      1,378      —         7       1,385

IXIS Financial Products, Inc.

   AA+/Aa1      16,178      (3 )     264       16,439

Monumental Life Aegon (MDA00572TR)

   AA+/Aa1      17,170      3       224       17,397

Ohio National

   AA/A1      2,527      —         15       2,542

Principal Life

   AA/Aa2      2,527      —         13       2,540

Protective Life

   AA/Aa3      2,543      —         12       2,555
                                
        44,305      —         548       44,853
                                

Other (Buy-Hold Synthetic Contracts):

            

Rabobank

   AAA/Aaa      7,306      4       117       7,427

Bank of America, N.A.

   AAA/Aaa      11,045      1       246       11,292

JP Morgan Chase Bank (Cartech03)

   AAA/Aaa      2,459      —         9       2,468

JP Morgan Chase Bank (Cartech02)

   AAA/Aaa      740      —         (5 )     735

Monumental Life Aegon (MDA00201TR3)

   AAA/Aaa      792      —         (13 )     779

UBS AG

   AAA/Aaa      9,257      1       82       9,340
                                
        31,599      6       436       32,041
                                

Interest Bearing Cash:

            

Mellon Bank (STIF)

   N/A      3,012      —         —         3,012
                                
        3,012      —         —         3,012
                                

Common Collective Trust:

            

Mellon Stable Value Fund

   AA+/Aa1      63      —         1       64
                                
        63      —         1       64
                                

Total Fund

      $ 78,979    $ 6     $ 985     $ 79,970
                                

 

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Savings Plan of Carpenter Technology Corporation

 

Notes to Financial Statements

December 31, 2007 and 2006

 

Note 5 - Standish Mellon Stable Value Fund (Continued)

 

As described in Note 2, because a portion of the underlying investments of the Fund are fully benefit- responsive, contract value is the relevant measurement attribute for that portion of the net assets available for benefits attributable to those underlying investments of the Fund. Contract value, as reported to the Plan, represents contributions made to the fund, plus earnings, less participant withdrawals and administrative expenses. Participants may ordinarily direct the withdrawal or transfer of all or a portion of their investment at contract value.

There are no reserves against contract value for credit risk of the underlying investments of the Fund. The crediting interest rate is based on a formula agreed upon with the various issuers. The fully benefit-responsive investments have minimum crediting interest rates. The minimum crediting interest rates reset periodically.

Certain events limit the ability of the Plan to transact at contract value with the various issuers. Such events include the following: (1) amendments to the plan documents (including complete or partial plan termination or merger with another plan), (2) changes to plan’s prohibition on competing investment options or deletion of equity wash provisions, (3) bankruptcy of the plan sponsor or other plan sponsor events (for example, divestitures or spin-offs of a subsidiary) that cause a significant withdrawal from the plan, or (4) the failure of the trust to qualify for exemption from federal income taxes or any required prohibited transaction exemption under Employee Retirement Income Security Act of 1974. The Plan administrator does not believe that the occurrence of any such value event, which would limit the Plan’s ability to transact at contract value with participants, is probable.

The underlying fully benefit-responsive investment contracts do not permit the insurance companies to terminate the agreements prior to the scheduled maturity dates.

 

Average Yields:    2007     2006  

Based on actual earnings

   4.67 %   4.58 %

Based on interest rate credited to participants

   4.82 %   4.61 %

Note 6 - Tax Status

The Internal Revenue Service has determined and informed the Company by letter dated March 21, 2003, that the Plan and related trust as of February 20, 2002 are designed in accordance with applicable sections of the Internal Revenue Code (“IRC”). Although the Plan has been amended since receiving the determination letter, the Company believes that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC.

 

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Savings Plan of Carpenter Technology Corporation

 

Notes to Financial Statements

December 31, 2007 and 2006

Note 7 - Related Parties and Party-in-Interest Transactions

Certain funds within the Plan are invested in shares of registered investment companies managed by Vanguard Fiduciary Trust Company, an affiliate of The Vanguard Group, and trustee, as defined by the Plan and, therefore, these transactions qualify as party-in-interest. Fees paid by the Plan in 2007 and 2006 for investment management services related to these funds amounted to $173,000 and $110,000, respectively.

Participants may elect to invest in the common stock of the Plan Sponsor. These transactions qualify as related party and party-in-interest transactions. Total purchases at market value related to the stock for 2007 and 2006 were $47,119,000 and $45,145,000, respectively. Total sales at market value related to the stock for 2007 and 2006 were $100,934,000 and $65,134,000, respectively.

As more fully described in Note 1, assets totalling $63,844,000 were transferred into the Plan from a related plan in March 2007. The purchase amounts above do not reflect activity related to this transfer.

 

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Savings Plan of Carpenter Technology Corporation

 

Schedule of Assets (Held at End of Year)   EIN: 23-0458500
Form 5500 - Schedule H - Line 4i (1 of 2)   PN: 020

December 31, 2007

 

 

(a)

 

(b)

Identity of Issue, Borrower,

Lessor or Similar Party

 

(c)

Description of Investment,

Including Maturity Date, Interest Rate,

Collateral, Par or Maturity Value

  (d)
Cost
**
  (e)
Current
Value
  Common Collective Trust:      
 

Interest Bearing Cash

     
 

Standish Mellon Asset Management, LLC

  Mellon Bank STIF   N/A   $ 5,944,000
           
 

Sub-total Interest Bearing Cash

        5,944,000
           
 

Insurance Company General Accounts

     
 

Standish Mellon Asset Management, LLC

  Canada Life (P46145)   N/A     1,003,000
 

Standish Mellon Asset Management, LLC

  Canada Life (P46151)   N/A     709,000
 

Standish Mellon Asset Management, LLC

  Natixis Financial Products, Inc.   N/A     21,144,000
 

Standish Mellon Asset Management, LLC

  Monumental Life Aegon (MDA00572TR)   N/A     18,874,000
 

Standish Mellon Asset Management, LLC

  Ohio National   N/A     853,000
 

Standish Mellon Asset Management, LLC

  Principal Life   N/A     868,000
 

Standish Mellon Asset Management, LLC

  Protective Life   N/A     870,000
           
 

Sub-total Insurance Company General Accounts

        44,321,000
           
 

Other (Buy-Hold Synthetic Contracts)

     
 

Standish Mellon Asset Management, LLC

 

Rabobank

  N/A     7,346,000
 

Standish Mellon Asset Management, LLC

 

Bank of America, N.A.

  N/A     12,711,000
 

Standish Mellon Asset Management, LLC

 

JP Morgan Chase Bank (Cartech03)

  N/A     1,134,000
 

Standish Mellon Asset Management, LLC

 

JP Morgan Chase Bank (Cartech02)

  N/A     392,000
 

Standish Mellon Asset Management, LLC

 

Monumental Life Aegon (MDA00201TR3)

  N/A     180,000
 

Standish Mellon Asset Management, LLC

 

UBS AG

  N/A     14,862,000
           
 

Sub-total Other (Buy-Hold Synthetic Contracts)

        36,625,000
           
 

Sub-total Common Collective Trust***

        86,890,000
           
  Registered Investment Companies:      
 

American Funds

 

American Balanced Fund

  N/A     22,499,000
 

American Funds

 

American Funds EuroPacific Growth Fund

  N/A     45,842,000
 

Artisan Funds

 

Artisan Mid Cap Value Fund

  N/A     15,776,000
 

Dodge & Cox Funds

 

Dodge & Cox Stock Fund

  N/A     33,256,000
 

PIMCO

 

PIMCO Total Return Fund

  N/A     26,585,000
 

T. Rowe Price

 

TRP Spectrum Growth Fund

  N/A     4,975,000

*

 

Vanguard

 

Vanguard 500 Index Fund

  N/A     72,667,000

*

 

Vanguard

 

Vanguard Explorer Fund

  N/A     2,145,000

 

* Party-in-Interest
** Historical cost has not been presented for investment funds, as all investments are participant directed
*** Fair Value for Common Collective Trust is $86,612,000

 

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Savings Plan of Carpenter Technology Corporation

 

Schedule of Assets (Held at End of Year)   EIN: 23-0458500
Form 5500 - Schedule H - Line 4i (2 of 2)   PN: 020
December 31, 2007  

 

(a)

  

(b)

Identity of Issue, Borrower,

Lessor or Similar Party

  

(c)

Description of Investment,

Including Maturity Date, Interest Rate,

Collateral, Par or Maturity Value

   (d)
Cost
**
   (e)
Current
Value
   Registered Investment Companies (Continued):         

*

  

Vanguard

  

Vanguard Mid-Cap Index Fund

   N/A      31,747,000

*

  

Vanguard

  

Vanguard PRIMECAP Fund

   N/A      5,653,000

*

  

Vanguard

  

Vanguard Prime Money Market Fund

   N/A      19,225,000

*

  

Vanguard

  

Vanguard Small-Cap Index Fund

   N/A      11,116,000

*

  

Vanguard

  

Vanguard Small-Cap Value Index Fund

   N/A      5,086,000

*

  

Vanguard

  

Vanguard Target Retirement 2005 Fund

   N/A      1,474,000

*

  

Vanguard

  

Vanguard Target Retirement 2015 Fund

   N/A      14,939,000

*

  

Vanguard

  

Vanguard Target Retirement 2025 Fund

   N/A      7,420,000

*

  

Vanguard

  

Vanguard Target Retirement 2035 Fund

   N/A      3,364,000

*

  

Vanguard

  

Vanguard Target Retirement 2045 Fund

   N/A      3,234,000

*

  

Vanguard

  

Vanguard Target Retirement Income Fund

   N/A      1,615,000
               
  

Sub-total Registered Investment Companies

           328,618,000
               
  

Employer Securities

        

*

  

Carpenter Technology Corporation

  

Carpenter Technology Stock Fund

   N/A      84,530,000
               
  

Sub-total Employer Securities

           84,530,000
               
  

Participant Loans

        

*

  

Participant Loans

  

Loans to Participants interest rate range 5.0% to 10.5%

   —        11,835,000
               
  

Sub-total Participant Loans

           11,835,000
               
  

Total Investments

         $ 511,873,000
               

 

* Party-in-Interest
** Historical cost has not been presented for investment funds, as all investments are participant directed

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, Carpenter Technology Corporation has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

 

   

SAVINGS PLAN OF

CARPENTER TECHNOLOGY CORPORATION

    (Name of Plan)
Date:   June 24, 2008   By:  

/s/ K. Douglas Ralph

      K. Douglas Ralph
      Sr. Vice President - Finance and Chief Financial Officer

 

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EXHIBIT INDEX

 

Exhibit

Number

    
23.1    Consent of Independent Registered Public Accounting Firm

 

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