-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IOqmdYxRJTYYPTFL8o1YlfF5FvyDN8kTSlNe6RPO5b92v5X5pDeDCZqzDui9A6zS zJyY4bLao8qJMvCV24g/oQ== 0000950152-99-005629.txt : 19990630 0000950152-99-005629.hdr.sgml : 19990630 ACCESSION NUMBER: 0000950152-99-005629 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990629 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EATON CORP CENTRAL INDEX KEY: 0000031277 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRONIC & OTHER ELECTRICAL EQUIPMENT (NO COMPUTER EQUIP) [3600] IRS NUMBER: 340196300 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 033-12842 FILM NUMBER: 99654327 BUSINESS ADDRESS: STREET 1: EATON CTR STREET 2: 1111 SUPERIOR AVE CITY: CLEVELAND STATE: OH ZIP: 44114-2584 BUSINESS PHONE: 2165235000 MAIL ADDRESS: STREET 1: 1111 SUPERIOR AVENUE CITY: CLEVELAND STATE: OH ZIP: 44114 FORMER COMPANY: FORMER CONFORMED NAME: EATON YALE & TOWNE INC DATE OF NAME CHANGE: 19710822 11-K 1 EATON CORP/401K SAVINGS PLAN 11-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 11-K Annual Report Pursuant to Section 15(d) of the Securities Exchange Act of 1934 (Mark One) [X] Annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934 (Fee required) For the fiscal year ended December 31, 1998 Or [ ] Transition report pursuant to Section 15(d) of the Securities Exchange Act of 1934 (Fee required) For the transition period from _____________ to ___________ Commission file number ____________________________________ A. Full title of the plan and the address of the plan, if different from that of the issuer named below: EATON CORPORATION 401(k) SAVINGS PLAN B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: Eaton Corporation, 1111 Superior Avenue, Cleveland, Ohio 44114-2584 Exhibit The following exhibit is filed herewith: Exhibit No. (23) Consent of Independent Auditors 14 SIGNATURES The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. (Name of Plan) EATON CORPORATION 401(k) SAVINGS PLAN 2 Date: June 28, 1999 By: Eaton Corporation Pension Administration Committee By: /s/ S. J. Cook ----------------------------- (Signature) S. J. Cook Vice President-Human Resources Eaton Corporation 3 Audited Financial Statements and Supplemental Schedules EATON CORPORATION 401(k) SAVINGS PLAN AND TRUST PLAN NUMBER: 162 DECEMBER 31, 1998 PLAN SPONSOR Eaton Corporation Eaton Center Cleveland, Ohio 44114 (216) 523-5000 Employer Identification Number: 34-0196300 PLAN ADMINISTRATOR Eaton Corporation Corporate Compensation and Organization Committee Eaton Center Cleveland, Ohio 44114 (216) 523-5000 4 Report of Independent Auditors Corporate Compensation and Organization Committee of Eaton Corporation Eaton Corporation 401(k) Savings Plan and Trust We have audited the accompanying statements of net assets available for benefits of the Eaton Corporation 401(k) Savings Plan and Trust as of December 31, 1998 and 1997, and the related statement of changes in net assets available for benefits for the year ended December 31, 1998. 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 generally accepted auditing standards. 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 at December 31, 1998 and 1997 and the changes in its net assets available for benefits for the year ended December 31, 1998, in conformity with 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 for investment purposes as of December 31, 1998, and reportable transactions 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 Fund Information in the statement of net assets available for benefits and the statement of changes in net assets available for benefits is presented for purposes of additional analysis rather than to present the net assets available for benefits and changes in net assets available for benefits of each fund. The supplemental schedules and Fund Information 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. /s/ Ernst & Young LLP Cleveland, Ohio June 11, 1999 1 5 Eaton Corporation 401(k) Savings Plan and Trust Statement of Net Assets Available for Benefits, with Fund Information December 31, 1998
Mutual Funds ---------------------------------------------------------- EB Money Prism American Vanguard Fidelity Templeton Vanguard Market Reserve Balanced Windsor Contra Foreign Index Fund Fund Fund Fund Fund Fund Fund ----------------------------------------------------------------------------------- ASSETS Investments: Mutual funds $2,540,203 $949,341 $1,208,192 $ 335,633 $9,089,599 Common/collective fund $8,762,812 EB Money Market fund $ 835,188 Eaton Corporation Common Shares Participant loans receivable ----------------------------------------------------------------------------------- Total investments 835,188 8,762,812 2,540,203 949,341 1,208,192 335,633 9,089,599 Receivables: Interest 3,539 Employee contributions 2,800 1,667 7,657 8,543 6,764 2,635 8,080 Other ----------------------------------------------------------------------------------- Total assets 841,527 8,764,479 2,547,860 957,884 1,214,956 338,268 9,097,679 LIABILITIES Other payable ----------------------------------------------------------------------------------- NET ASSETS AVAILABLE FOR BENEFITS $ 841,527 $8,764,479 $2,547,860 $957,884 $1,214,956 $ 338,268 $9,097,679 =================================================================================== Eaton Common Shares Loan Fund Fund Total ------------------------------------ ASSETS Investments: Mutual funds $14,122,968 Common/collective fund 8,762,812 EB Money Market fund $ 58,387 893,575 Eaton Corporation Common Shares 2,916,728 2,916,728 Participant loans receivable $ 800,793 800,793 ------------------------------------ Total investments 2,975,115 800,793 27,496,876 Receivables: Interest 426 3,965 Employee contributions 2,655 40,801 Other 41,817 41,817 ------------------------------------ Total assets 3,020,013 800,793 27,583,459 LIABILITIES Other payable 10,067 10,067 ------------------------------------ NET ASSETS AVAILABLE FOR BENEFITS $3,009,946 $ 800,793 $27,573,392 ====================================
See notes to financial statements. 2 6 Eaton Corporation 401(k) Savings Plan and Trust Statement of Net Assets Available for Benefits, with Fund Information December 31, 1997
Mutual Funds -------------------------------------------------------- Prism Key Money Prism American Stock Vanguard Fidelity Templeton Market Reserve Balanced Index Windsor Contra Foreign Loan Fund Fund Fund Fund Fund Fund Fund Fund Total ------------------------------------------------------------------------------------------------------ ASSETS Investments: Mutual funds $ 203,979 $ 140,880 $ 309,922 $ 355,913 $127,327 $1,138,021 Common/collective fund $ 52,923 $41,106 94,029 Participant loans $ 14,163 14,163 receivable ------------------------------------------------------------------------------------------------------ Total investments 52,923 41,106 203,979 140,880 309,922 355,913 127,327 14,163 1,246,213 Receivables: Employee contributions 1,016 1,046 4,166 3,872 11,185 6,615 2,955 30,855 ------------------------------------------------------------------------------------------------------ NET ASSETS AVAILABLE FOR BENEFITS $ 53,939 $ 42,152 $ 208,145 $ 144,752 $ 321,107 $ 362,528 $ 130,282 $ 14,163 $1,277,068 ======================================================================================================
See notes to financial statements. 3 7 Eaton Corporation 401(k) Savings Plan and Trust Statement of Changes in Net Assets Available for Benefits, with Fund Information December 31, 1998
Mutual Funds ---------------------------------------------------------- EB Key Money Prism American Stock Vanguard Fidelity Templeton Market Reserve Balanced Index Windsor Contra Foreign Fund Fund Fund Fund Fund Fund Fund ----------------------------------------------------------------------------------- ADDITIONS Employee contributions $105,043 $ 304,363 $ 448,734 $28,616 $ 538,141 $ 427,440 $ 156,465 Interest 22,674 Dividends 203,244 5,213 76,277 87,818 33,310 ----------------------------------------------------------------------------------- Total additions 127,717 304,363 651,978 33,829 614,418 515,258 189,775 DEDUCTIONS Distributions to participants 167,980 313,382 105,346 12,263 15,120 33,190 Net realized and unrealized appreciation (depreciation) in 93,811 (90,450) 10,912 (57,401) 139,991 (55,694) fair value of investments Net interfund transfers 208,878 (202,820) (151,885) (189,493) 91,845 212,296 (34,837) Transfers from predecessor 618,973 8,840,355 2,035,418 178 3 141,932 plans ----------------------------------------------------------------------------------- Net increase (decrease) 787,588 8,722,327 2,339,715 (144,752) 636,777 852,428 207,986 Net assets available for benefits at beginning of 53,939 42,152 208,145 144,752 321,107 362,528 130,282 year ----------------------------------------------------------------------------------- NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $841,527 $8,764,479 $2,547,860 $ 0 $ 957,884 $1,214,956 $ 338,268 =================================================================================== Mutual Funds ------------ Eaton Vanguard Common Index Shares Loan Fund Fund Fund Total ------------------------------------------------ ADDITIONS Employee contributions $ 482,922 $ 168,482 $ 2,660,206 Interest $ 23,441 46,115 Dividends 121,493 20,085 547,440 ------------------------------------------------ Total additions 604,415 188,567 23,441 3,253,761 DEDUCTIONS Distributions to participants 210,841 66,019 924,141 Net realized and unrealized appreciation (depreciation) in 1,193,687 340,555 1,575,411 fair value of investments Net interfund transfers (277,608) 150,419 193,205 Transfers from predecessor 7,788,026 2,396,424 569,984 22,391,293 plans ------------------------------------------------ Net increase (decrease) 9,097,679 3,009,946 786,630 26,296,324 Net assets available for benefits at beginning of 14,163 1,277,068 year ------------------------------------------------ NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $9,097,679 $3,009,946 $ 800,793 $27,573,392 ================================================
See notes to financial statements. 4 8 Eaton Corporation 401(k) Savings Plan and Trust Notes to Financial Statements December 31, 1998 and 1997 A. SIGNIFICANT ACCOUNTING POLICIES Investments are stated at fair value as measured by quoted prices in active markets except for the Prism Money Market Fund and the Fidelity Contra Fund where the investments are stated at fair value as determined by the trustee. The participant loans receivable are valued at their outstanding balances, which approximate fair value. The cost of shares sold for mutual funds and Eaton Common Shares Fund is based upon the average cost of each participant's shares sold for purposes of determining realized gains and losses. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. B. DESCRIPTION OF THE PLAN Effective July 1, 1996, Eaton Corporation (the "Company" or "Plan Sponsor") established a 401(k) profit sharing plan and trust to be known as the Eaton Corporation 401(k) Savings Plan and Trust (the "Plan"). On May 1, 1998 the Company amended the Plan and restated certain articles therein to qualify the Plan as a profit-sharing plan under Section 401(a) of the Internal Revenue Code (the "Code"), and include a cash or deferred arrangement that is intended to qualify under Section 401(k) of the Code. The Plan provides that all union employees that belong to IAM Local 78 and IAM Local 1061, Milwaukee, Wisconsin; USWA Local 7509, Shelbyville, Tennessee; UAW Local 164, Auburn, Indiana; Metal Processors Union IUAP and NW AFL-CIO Local 16, Rochelle, Illinois; UAW Local 220, Marshall, Michigan; IAM and Aerospace Workers, Local 77, Eden Prairie, Minnesota; Beaver Salaried Employees Association and IBEW, AFL-CIO, Local 201, Beaver, Pennsylvania; and IBEW, AFL-CIO, Local 1833, Horseheads, New York, will be eligible for membership in the Plan on the date at which the employee has completed the specified probationary period as stated in the applicable collective bargaining agreement. 5 9 Eaton Corporation 401(k) Savings Plan and Trust Notes to Financial Statements-Continued B. DESCRIPTION OF THE PLAN--CONTINUED Eligible employees may elect to make before-tax contributions from 1 to 15 percent of their compensation. Contributions are allocated by the employee among the following nine investment funds offered by the Plan. Beginning in 1998, the Vanguard Index Fund and the Eaton Common Shares Fund are new investment options.
Fund Description Sponsor - ------------------------------------------------------------------------------------------------------- EB Money Market Fund Money Market Instruments Key Bank Prism Reserve Fund U.S. Treasury and Agency Securities Key Bank American Balanced Fund Stocks and Bonds of U.S. Companies Key Bank and Government Key Stock Index Fund Standard & Poor's 500 Index Key Bank Vanguard Windsor Fund Common Stocks Vanguard Group Fidelity Contra Fund Growth Common Stock Fidelity Investment Co. Templeton Foreign Fund Foreign Stocks and Debt Obligations Templeton Investment Co. of Companies and Governments Vanguard Index Fund Common Stocks Vanguard Group Eaton Common Shares Fund Company Stock Eaton Corporation
Each participant's account is credited with the participant's contributions and allocations of the Plan's earnings and is charged with an allocation of administrative expenses. Allocations are based on participant account balances. The benefit to which a participant is entitled is the benefit that can be provided from the participant's account. Participants are immediately vested in their contributions and actual earnings thereon. On termination of service a participant is eligible to receive a lump-sum amount equal to the value of his account. Participants may borrow from their fund accounts up to the lesser of $50,000 or 50% of their vested account balance, reduced by their highest outstanding loan balance during the preceding 12 months. Loan transactions are treated as a transfer from the investment fund to the loan fund. Loan terms range from 1-5 years except for loans used for the purchase of a primary residence. The loans are secured by the balance in the participant's account and bear interest at a rate based on the prime interest rates as determined daily the Trustee. Principal and interest is paid ratably through monthly payroll deductions. All administrative and transaction costs, management fees and expenses of the Plan shall be paid by the trustee from the trust unless such costs, fees and expenses are paid by the Company. The Company elected to pay certain administrative costs during 1998 on behalf of the Plan. 6 10 Eaton Corporation 401(k) Savings Plan and Trust Notes to Financial Statements-Continued B. DESCRIPTION OF THE PLAN--CONTINUED The Company may amend, modify, suspend or terminate the Plan. No amendment, modification, suspension or termination of the Plan shall have the effect of providing that any amounts then held under the Plan may be used or diverted to any purpose other than for the exclusive benefit of members or their beneficiaries. Information about the Plan is contained in the Plan document, which is available from the Human Resources Department upon request. C. INVESTMENTS Key Trust Company of Ohio, N.A., trustee of the plan, holds the Plan's investment assets and executes transactions. The fair value of individual investments that represent 5% or more of the Plan's net assets available for benefits are as follows:
DECEMBER 31 1998 1997 -------------------------- Key Bank Prism Reserve Fund $ 8,762,812 $ 41,106 American Balanced Fund 2,540,203 203,979 Key Stock Index Fund 140,880 Vanguard Windsor Fund 949,341 309,922 Fidelity Contra Fund 1,208,192 355,913 Templeton Foreign Fund 335,633 127,327 Vanguard Index Fund 9,089,599 Eaton Corporation Common Shares 2,975,115
D. INCOME TAX STATUS The Plan has received a determination letter from the Internal Revenue Service dated November 14, 1997, stating that the Plan is qualified under Section 401(a) of the Code and that the related trust therefore, is exempt from taxation. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification. The Plan Administrator believes the Plan is being operated in compliance with the applicable requirements of the Code and, therefore, believes that the Plan is qualified and the related trust is tax exempt. 7 11 Eaton Corporation 401(k) Savings Plan and Trust Notes to Financial Statements - Continued E. TRANSACTIONS WITH PARTIES-IN-INTEREST Party-in-interest transactions included the investment in the special funds of the trustee and the payment of administrative expenses. Such transactions are exempt from being prohibited transactions. F. PLAN MERGER During 1998, the Company authorized the merger of the Eden Prairie Division Hourly Employee 401(k) Plan and The Eaton Corporation Savings Plan for Certain Cutler-Hammer Represented Employees to the Plan. Total assets transferred into the plan during 1998 were $22,391,293. G. SUBSEQUENT EVENT The Company authorized the mergers of the Engineered Fasteners Division Hourly Employees 401(k) Plan and the Lincoln Plant Share Purchase and Investment Plan and Trust into the Plan. The Plan mergers were effective February 1, 1999 and May 1, 1999, respectively. Assets transferred into the Plan on approximately those same dates. H. YEAR 2000 ISSUE (UNAUDITED) The Plan Sponsor has determined that it will be necessary to take certain steps in order to ensure that the Plan's information systems are prepared to handle year 2000 dates. The Plan Sponsor is taking a two phase approach. The first phase addresses internal systems that must be modified or replaced to function properly. Both internal and external resources are being utilized to replace or modify existing software applications, and test the software and equipment for the year 2000 modifications. The Plan Sponsor anticipates substantially completing this phase of the project by mid-1999. Costs associated with modifying software and equipment are not estimated to be significant and will be paid by the Plan Sponsor. For the second phase of the project, Plan management established communications with its third party service providers to determine that they have developed plans to address their own year 2000 problems as they relate to the Plan's operations. All third party service providers have indicated that they will be year 2000 compliant by mid-1999. If modification of data processing systems of either the Plan, the Plan Sponsor, or its service providers are not completed timely, the year 2000 problem could have an impact on the operations of the Plan. Plan management has not developed a contingency plan, because they are confident that all systems will be year 2000 ready. 8 12 Eaton Corporation 401(k) Savings Plan and Trust EIN: 34-0196300 Plan No.: 162 Form 5500, Line 27(a)--Schedule of Assets Held for Investment Purposes December 31, 1998
Description of Current Identity of Issue Investment Cost Value ----------------------------------------------------------------------------------------------------- * Key Bank: Prism Reserve Fund 55,039 shares $ 8,675,182 $ 8,762,812 Employee Benefits Money Market Fund 893,575 units 893,575 893,575 American Balanced Fund 161,180 shares 2,606,692 2,540,203 Vanguard Windsor Fund 60,972 shares 1,013,206 949,341 Vanguard Index Fund 80,546 shares 7,890,409 9,089,599 Fidelity Contra Fund 21,275 shares 1,121,140 1,208,192 Templeton Foreign Fund 39,978 shares 340,893 335,633 * Eaton Corporation Common Shares 41,262 shares 2,615,196 2,916,728 * Participant Loans Receivable 8.75%--9.5%; variable maturities 800,793 --------------------------- $ 25,156,293 $27,496,876 ===========================
*Indicates a party-in-interest to the Plan. 9 13 Eaton Corporation 401(k) Savings Plan and Trust EIN: 34-0196300 Plan No: 162 Form 5500, Line 27(d)--Schedule of Reportable Transactions Year Ended December 31, 1998
Purchase Selling Cost of Current Net Gain Description of Asset Price Price Asset Value (Loss) - ---------------------------------------------------------------------------------------------------------- CATEGORY (I)--SINGLE TRANSACTION IN EXCESS OF 5% OF PLAN ASSETS *Key Bank: EB Money Market Fund $ 618,934 $ 618,934 $ 618,934 EB Money Market Fund 184,628 184,628 184,628 EB Money Market Fund 69,551 69,551 69,551 EB Money Market Fund 142,409 142,409 142,409 EB Money Market Fund 77,635 77,635 77,635 EB Money Market Fund 74,850 74,850 74,850 EB Money Market Fund 109,496 109,496 109,496 EB Money Market Fund 177,064 177,064 177,064 EB Money Market Fund 73,338 73,338 73,338 EB Money Market Fund $224,711 224,711 224,711 EB Money Market Fund 70,408 70,408 70,408 EB Money Market Fund 97,470 97,470 97,470 EB Money Market Fund 96,062 96,062 96,062 EB Money Market Fund 81,302 81,302 81,302 EB Money Market Fund 84,375 84,375 84,375 EB Money Market Fund 128,003 128,003 128,003 EB Money Market Fund 73,911 73,911 73,911 Prism Reserve Fund 329,207 329,207 329,207 Prism Reserve Fund 79,411 79,411 79,411 Prism Reserve Fund 8,511,134 8,511,134 8,511,134 Prism Reserve Fund 78,968 78,968 78,968 Prism Reserve Fund 74,797 74,797 74,797 Prism Reserve Fund 66,509 66,509 66,509 Prism Reserve Fund 72,094 72,094 72,094 Prism Reserve Fund 77,708 76,677 77,708 $ 1,031 Prism Reserve Fund 68,052 67,714 68,052 338 Prism Reserve Fund 67,271 66,687 67,271 584 Prism Reserve Fund 87,448 86,608 87,448 840 American Balanced Fund 2,035,382 2,035,382 2,035,382 American Balanced Fund 72,379 72,379 72,379
10 14 Eaton Corporation 401(k) Savings Plan and Trust EIN: 34-0196300 Plan No: 162 Form 5500, Item 27(d)--Schedule of Reportable Transactions--Continued
Purchase Selling Cost of Current Net Gain Description of Asset Price Price Asset Value (Loss) - ---------------------------------------------------------------------------------------------------------- CATEGORY (I)--SINGLE TRANSACTION IN EXCESS OF 5% OF PLAN ASSETS--CONTINUED American Balanced Fund $ 89,602 $ 89,602 $ 89,602 American Balanced Fund 88,858 88,858 88,858 American Balanced Fund 103,518 103,518 103,518 American Balanced Fund 170,850 170,850 170,850 American Balanced Fund 154,550 154,550 154,550 American Balanced Fund $ 68,274 70,469 68,274 $ (2,195) American Balanced Fund 74,166 81,147 74,166 (6,981) American Balanced Fund 95,390 93,497 95,390 1,893 American Balanced Fund 94,279 98,299 94,279 (4,020) *Key Stock Index Fund 190,752 169,924 190,752 20,828 Vanguard Windsor Fund 65,870 65,870 65,870 Fidelity Contra Fund 502,000 502,000 502,000 Fidelity Contra Fund 81,875 81,875 81,875 Fidelity Contra Fund 502,000 418,658 502,000 83,342 Fidelity Contra Fund 66,948 61,484 66,948 5,464 Templeton Foreign Fund 141,924 141,924 141,924 Templeton Foreign Fund 66,948 66,948 66,948 Templeton Foreign Fund 86,835 99,075 86,835 (12,240) Vanguard Index Fund 190,752 190,752 190,752 Vanguard Index Fund 1,645,063 1,645,063 1,645,063 Vanguard Index Fund 72,699 72,699 72,699 Vanguard Index Fund 70,371 70,371 70,371 Vanguard Index Fund 6,130,660 6,130,660 6,130,660 Vanguard Index Fund 108,296 108,296 108,296 Vanguard Index Fund 65,765 65,765 65,765 Vanguard Index Fund 81,187 81,187 81,187 Vanguard Index Fund 111,755 111,755 111,755 Vanguard Index Fund 108,647 108,647 108,647 Vanguard Index Fund 114,975 120,177 114,975 (5,202) Vanguard Index Fund 129,104 147,397 129,104 (18,293)
11 15 Eaton Corporation 401(k) Savings Plan and Trust EIN: 34-0196300 Plan No: 162 Form 5500, Item 27(d)--Schedule of Reportable Transactions--Continued
Purchase Selling Cost of Current Net Gain Description of Asset Price Price Asset Value (Loss) - ---------------------------------------------------------------------------------------------------------- CATEGORY (i)--SINGLE TRANSACTION IN EXCESS OF 5% OF PLAN ASSETS--CONTINUED Vanguard Index Fund $ 73,775 $ 80,510 $ 73,775 $ (6,735) Vanguard Index Fund 141,926 150,951 141,926 (9,025) Vanguard Index Fund 89,215 92,878 89,215 (3,663) Vanguard Index Fund 185,795 185,675 185,795 120 Vanguard Index Fund 64,651 57,339 64,651 7,312 Vanguard Index Fund 102,791 91,514 102,791 11,277 *Eaton Common Shares $ 179,405 179,405 179,405 *Eaton Common Shares 67,154 67,154 67,154 *Eaton Common Shares 64,235 64,235 64,235 *Eaton Common Shares 127,945 127,945 127,945 *Eaton Common Shares 173,842 187,600 173,842 (13,758) *Eaton Common Shares 72,570 72,548 72,570 22 *Eaton Common Shares 87,519 83,332 87,519 4,187 *Eaton Common Shares 84,578 76,985 84,578 7,593 *Eaton Common Shares 96,028 91,114 96,028 4,914 CATEGORY (iii)--SERIES OF TRANSACTIONS IN EXCESS OF 5% OF PLAN ASSETS *Key Bank EB Money Market Fund 3,067,441 3,067,441 3,067,441 2,173,866 2,173,866 2,173,866 Prism Reserve Fund 9,459,470 9,459,470 9,459,470 831,574 824,030 831,574 7,544 Stock Index Fund 48,142 48,142 48,142 199,934 178,380 199,934 21,554 American Balanced Fund 3,412,183 3,412,183 3,412,183 985,509 1,008,629 985,509 (23,120) Vanguard Windsor Fund 850,057 850,057 850,057 153,237 173,341 153,237 (20,104)
12 16 Eaton Corporation 401(k) Savings Plan and Trust EIN: 34-0196300 Plan No: 162 Form 5500, Item 27(d)--Schedule of Reportable Transactions--Continued
Purchase Selling Cost of Current Net Gain Description of Asset Price Price Asset Value (Loss) - ---------------------------------------------------------------------------------------------------------- CATEGORY (iii)--SERIES OF TRANSACTIONS IN EXCESS OF 5% OF PLAN ASSETS--CONTINUED Fidelity Contra Fund $ 1,630,920 $ 1,630,920 $ 1,630,920 $918,630 827,965 918,630 $ 90,665 Templeton Foreign Fund 930,894 930,894 930,894 666,894 727,929 666,894 (61,035) Vanguard Index Fund 9,510,993 9,510,993 9,510,993 1,615,081 1,620,584 1,615,081 (5,503) *Eaton Common Shares 1,485,458 1,485,458 1,485,458 1,166,240 1,127,218 1,166,240 39,022
There were no category (ii) or (iv) reportable transactions during for the year ended December 31, 1998. * Indicates a party-in-interest to the Plan. 13 EX-23 2 EXHIBIT 23 1 CONSENT OF INDEPENDENT AUDITORS We consent to the incorporation by reference in the Registration Statements (Form S-8 No. 333-28869 and Form S-8 No. 333-77245) pertaining to the Eaton Corporation 401(k) Savings Plan and Trust of our report dated June 11, 1999, with respect to the financial statements and schedules of the Eaton Corporation 401(k) Savings Plan and Trust included in this Annual Report (Form 11-K) for the year ended December 31, 1998. /s/ Ernst & Young LLP Cleveland, Ohio June 23, 1999 14 -----END PRIVACY-ENHANCED MESSAGE-----