-----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, BVWT9UnPWE1TpB2+GCVaQuBzmtFcvzZV6vCF6I2jmoEjZ2M+pG82zPl2ATKVdnMw wuf0fHaAmxc/YKYMF2LBUA== 0000950137-99-002323.txt : 19990630 0000950137-99-002323.hdr.sgml : 19990630 ACCESSION NUMBER: 0000950137-99-002323 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990629 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GATX CORP CENTRAL INDEX KEY: 0000040211 STANDARD INDUSTRIAL CLASSIFICATION: TRANSPORTATION SERVICES [4700] IRS NUMBER: 361124040 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 001-02328 FILM NUMBER: 99654709 BUSINESS ADDRESS: STREET 1: 500 W MONROE ST CITY: CHICAGO STATE: IL ZIP: 60661 BUSINESS PHONE: 3126216200 FORMER COMPANY: FORMER CONFORMED NAME: GENERAL AMERICAN TRANSPORTATION CORP DATE OF NAME CHANGE: 19750722 11-K 1 FORM 11-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 --------------------------------------------------------------- FORM 11-K [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 1998 OR TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 --------------------------------------------------------------- Full title of the Plan: GATX CORPORATION SALARIED EMPLOYEES RETIREMENT SAVINGS PLAN Name of the issuer of the securities held pursuant to the Plan and the address of its principal executive office: GATX Corporation 500 West Monroe Street, Chicago, Illinois 60661-3676 (312) 621-6200 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees have duly caused this annual report to be signed by the undersigned thereunto duly authorized. GATX CORPORATION SALARIED EMPLOYEES RETIREMENT SAVINGS PLAN (Name of Plan) By: /s/ James Conniff -------------------------------- James Conniff Plan Administrator Dated: June 29, 1999 3 GATX Corporation Salaried Employees Retirement Savings Plan Index to Financial Statements and Supplemental Schedules For Annual Report on Form 11-K Years ended December 31, 1998 and 1997 CONTENTS Report of Independent Auditors......................................................4 Consent of Independent Auditors.....................................................5 Financial Statements Statements of Assets Available for Benefits, With Fund Information..................6 Statements of Changes in Assets Available for Benefits, With Fund Information.......7 Notes to Financial Statements......................................................10 Supplemental Schedules Line 27a - Schedule of Assets Held for Investment Purposes.........................17 Line 27d - Schedule of Reportable Transactions.....................................18
4 Report of Independent Auditors Employee Benefits Committee GATX Corporation We have audited the accompanying statements of assets available for benefits of the GATX Corporation Salaried Employees Retirement Savings Plan as of December 31, 1998 and 1997, and the related statement of changes in 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 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 assets available for benefits of the Plan at December 31, 1998 and 1997, and the changes in its assets available for benefits for the years then ended, in conformity with generally accepted accounting principles. 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 Fund Information has been subjected to the auditing procedures applied in our audits of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. 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 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. Ernst & Young LLP June 8, 1999 Chicago, Illinois 4 5 CONSENT OF INDEPENDENT AUDITORS We consent to the incorporation by reference in the following: (i) Registration Statement No. 2-92404 on Form S-8, filed July 26, 1984 and (ii) Registration Statement No. 33-41007 on Form S-8 filed June 7, 1991, pertaining to the GATX Corporation Salaried Employees Retirement Savings Plan, of our report dated June 8, 1999, with respect to the financial statements of GATX Corporation Salaried Employees Retirement Savings Plan included in this Annual Report on Form 11-K for the year ended December 31, 1998. ERNST & YOUNG LLP Chicago, Illinois June 28, 1999 5 6 EIN 36-1124040 Plan #002 GATX Corporation Salaried Employees Retirement Savings Plan Statement of Assets Available for Benefits, With Fund Information December 31, 1998
FUND INFORMATION ------------------------------------------------------------------------------- GATX CORPORATION PHILLIPS COMMON PETROLEUM MANAGED STOCK SPARTAN FIDELITY PUTNAM COMPANY INCOME FUND U.S. EQUITY PURITAN VOYAGER SECURITIES FUND (NOTE 4) INDEX FUND FUND FUND FUND ------------ ----------- ----------- ---------- ------------ ------------- ASSETS Investments at current value (Note 3): Bankers Trust Pyramid GIC Fund $ 8,986,805 $ -- $ -- $ -- $ -- $ -- GATX Corporation Common Stock Fund -- 63,754,753 -- -- -- -- Spartan U.S. Equity Index Fund -- -- 30,854,092 -- -- -- Fidelity Puritan Fund -- -- -- 9,492,958 -- -- Fidelity Managed Income Portfolio II 15,089,178 -- -- -- -- -- Putnam Voyager Fund -- -- -- -- 17,364,579 -- Phillips Petroleum Company Securities Fund -- -- -- -- -- 45,539 Dreyfus New Leaders Fund -- -- -- -- -- -- Fidelity Equity Income Fund -- -- -- -- -- -- Templeton Foreign Fund A -- -- -- -- -- -- FMTC Institutional Money Market Fund 765,821 -- -- -- -- -- Participant loans -- -- -- -- -- -- ------------ ----------- ----------- ---------- ------------ ------------- Assets available for benefits $ 24,841,804 $63,754,753 $30,854,092 $9,492,958 $ 17,364,579 $ 45,539 ============ =========== =========== ========== ============ ============= FUND INFORMATION -------------------------------------------------------------- DREYFUS FIDELITY NEW EQUITY TEMPLETON LEADERS INCOME FOREIGN PARTICIPANT FUND FUND FUND A LOANS TOTAL ------------ ------------ ------------ ------------ ------------ ASSETS Investments at current value (Note 3): Bankers Trust Pyramid GIC Fund $ -- $ -- $ -- $ -- $ 8,986,805 GATX Corporation Common Stock Fund -- -- -- -- 63,754,753 Spartan U.S. Equity Index Fund -- -- -- -- 30,854,092 Fidelity Puritan Fund -- -- -- -- 9,492,958 Fidelity Managed Income Portfolio II -- -- -- -- 15,089,178 Putnam Voyager Fund -- -- -- -- 17,364,579 Phillips Petroleum Company Securities Fund -- -- -- -- 45,539 Dreyfus New Leaders Fund 1,225,786 -- -- -- 1,225,786 Fidelity Equity Income Fund -- 4,312,324 -- -- 4,312,324 Templeton Foreign Fund A -- -- 1,606,346 -- 1,606,346 FMTC Institutional Money Market Fund -- -- -- -- 765,821 Participant loans -- -- -- 4,680,574 4,680,574 ------------ ------------ ------------ ------------ ------------ Assets available for benefits $ 1,225,786 $ 4,312,324 $ 1,606,346 $ 4,680,574 $158,178,755 ============ ============ ============ ============ ============
See notes to financial statements. 6 7 EIN 36-1124040 Plan #002 GATX Corporation Salaried Employees Retirement Savings Plan Statement of Assets Available for Benefits, With Fund Information December 31, 1997
FUND INFORMATION ----------------------------------------------------------------------------- GATX PHILLIPS CORPORATION PETROLEUM MANAGED COMMON STOCK SPARTAN FIDELITY PUTNAM COMPANY INCOME FUND U.S. EQUITY PURITAN VOYAGER SECURITIES FUND (NOTE 4) INDEX FUND FUND FUND FUND ----------- ----------- ----------- ----------- ----------- ----------- ASSETS Investments at current value (Note 3): Bankers Trust Pyramid GIC Fund $12,642,493 $ -- $ -- $ -- $ -- $ -- GATX Corporation Common Stock Fund -- 56,249,309 -- -- -- -- Spartan U.S. Equity Index Fund -- -- 23,563,086 -- -- -- Fidelity Puritan Fund -- -- -- 8,444,699 -- -- Fidelity Managed Income Portfolio II 11,540,501 -- -- -- -- -- Putnam Voyager Fund -- -- -- -- 14,074,452 -- Phillips Petroleum Company Securities Fund -- -- -- -- -- 51,950 Dreyfus New Leaders Fund -- -- -- -- -- -- Fidelity Equity Income Fund -- -- -- -- -- -- Templeton Foreign Fund A -- -- -- -- -- -- FMTC Institutional Money Market Fund 992,335 -- -- -- -- -- Participant loans -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- Assets available for benefits $25,175,329 $56,249,309 $23,563,086 $ 8,444,699 $14,074,452 $ 51,950 =========== =========== =========== =========== =========== =========== FUND INFORMATION -------------------------------------------------------------- DREYFUS FIDELITY NEW EQUITY TEMPLETON LEADERS INCOME FOREIGN PARTICIPANT FUND FUND FUND A LOANS TOTAL ------------ ------------ ------------ ------------ ------------ ASSETS Investments at current value (Note 3): Bankers Trust Pyramid GIC Fund $ -- $ -- $ -- $ -- $ 12,642,493 GATX Corporation Common Stock Fund -- -- -- -- 56,249,309 Spartan U.S. Equity Index Fund -- -- -- -- 23,563,086 Fidelity Puritan Fund -- -- -- -- 8,444,699 Fidelity Managed Income Portfolio II -- -- -- -- 11,540,501 Putnam Voyager Fund -- -- -- -- 14,074,452 Phillips Petroleum Company Securities Fund -- -- -- -- 51,950 Dreyfus New Leaders Fund 987,859 -- -- -- 987,859 Fidelity Equity Income Fund -- 3,238,274 -- -- 3,238,274 Templeton Foreign Fund A -- -- 1,710,579 -- 1,710,579 FMTC Institutional Money Market Fund -- -- -- -- 992,335 Participant loans -- -- -- 4,189,433 4,189,433 ------------ ------------ ------------ ------------ ------------ Assets available for benefits $ 987,859 $ 3,238,274 $ 1,710,579 $ 4,189,433 $137,684,970 ============ ============ ============ ============ ============
See notes to financial statements. 7 8 EIN 36-1124040 Plan #002 GATX Corporation Salaried Employees Retirement Savings Plan Statement of Changes in Assets Available for Benefits, With Fund Information December 31, 1998
FUND INFORMATION -------------------------------------------------------------------- GATX CORPORATION COMMON MANAGED STOCK SPARTAN FIDELITY PUTNAM INCOME FUND U.S. EQUITY PURITAN VOYAGER FUND (NOTE 4) INDEX FUND FUND FUND ------------ ------------ ------------ ------------ ------------ ADDITIONS Contributions by GATX Corporation and subsidiaries $ -- $ 2,294,334 $ -- $ -- $ -- Salary deferrals by participants 1,368,166 1,185,574 1,516,691 651,745 1,380,872 Rollover contributions by participants 19,182 244,421 73,941 98,371 221,491 Interest income 1,438,758 727 -- -- -- Dividend income -- 1,595,197 597,849 954,941 1,161,408 Transfer from (to) GATX Corporation Hourly Employees Retirement Savings Plan 19,176 (14,008) 1,271 1,839 -- ------------ ------------ ------------ ------------ ------------ 2,845,282 5,306,245 2,189,752 1,706,896 2,763,771 DEDUCTIONS Withdrawals by participants (1,440,218) (2,796,388) (1,519,050) (446,572) (777,218) ------------ ------------ ------------ ------------ ------------ (1,440,218) (2,796,388) (1,519,050) (446,572) (777,218) Net appreciation (depreciation) in fair value of investments -- 2,798,116 6,121,788 407,858 2,124,662 Interfund transfers (1,738,589) 2,197,471 498,516 (619,923) (821,088) ------------ ------------ ------------ ------------ ------------ Net increase (decrease) (333,525) 7,505,444 7,291,006 1,048,259 3,290,127 Assets available for benefits: Beginning of the year 25,175,329 56,249,309 23,563,086 8,444,699 14,074,452 ------------ ------------ ------------ ------------ ------------ End of the year $ 24,841,804 $ 63,754,753 $ 30,854,092 $ 9,492,958 $ 17,364,579 ============ ============ ============ ============ ============ FUND INFORMATION --------------------------------------------------------------------- PHILLIPS PETROLEUM DREYFUS FIDELITY COMPANY NEW EQUITY TEMPLETON SECURITIES LEADERS INCOME FOREIGN PARTICIPANT TOTAL FUND FUND FUND FUND A LOANS ----------- ----------- ----------- ------------- ------------- ------------- ADDITIONS Contributions by GATX Corporation and subsidiaries $ -- $ -- $ -- $ -- $ -- $ 2,294,334 Salary deferrals by participants -- 224,015 435,669 232,314 -- 6,995,046 Rollover contributions by participants -- 35,185 104,246 20,618 -- 817,455 Interest income -- -- -- -- 399,725 1,839,210 Dividend income -- 29,940 229,129 169,863 -- 4,738,327 Transfer from (to) GATX Corporation Hourly Employees Retirement Savings Plan -- -- -- -- -- 8,278 ----------- ----------- ----------- ------------- ------------- ------------- -- 289,140 769,044 422,795 399,725 16,692,650 DEDUCTIONS Withdrawals by participants -- (83,665) (256,976) (84,099) (74,089) (7,478,275) ----------- ----------- ----------- ------------- ------------- ------------- -- (83,665) (256,976) (84,099) (74,089) (7,478,275) Net appreciation (depreciation) in fair value of investments (6,411 (90,498) 201,281 (277,386) -- 11,279,410 Interfund transfers -- 122,950 360,701 (165,543) 165,505 -- ----------- ----------- ----------- ------------- ------------- ------------- Net increase (decrease) (6,411 237,927 1,074,050 (104,233) 491,141 20,493,785 Assets available for benefits: Beginning of the year 51,950 987,859 3,238,274 1,710,579 4,189,433 137,684,970 ----------- ----------- ----------- ------------- ------------- ------------- End of the year $ 45,539 $ 1,225,786 $ 4,312,324 $ 1,606,346 $ 4,680,574 $ 158,178,755 =========== =========== =========== ============= ============= =============
See notes to financial statements. 8 9 EIN 36-1124040 Plan #002 GATX Corporation Salaried Employees Retirement Savings Plan Statement of Changes in Assets Available for Benefits, With Fund Information December 31, 1997
FUND INFORMATION ------------------------------------------------------------------------------------ GATX CORPORATION PHILLIPS COMMON PETROLEUM MANAGED STOCK SPARTAN FIDELITY PUTNAM COMPANY INCOME FUND U.S. EQUITY PURITAN VOYAGER SECURITIES FUND (NOTE 4) INDEX FUND FUND FUND FUND ------------ ------------ ------------ ----------- ------------ ----------- ADDITIONS Contributions by GATX Corporation and subsidiaries $ -- $ 2,132,799 $ -- $ -- $ -- $ -- ------------ ------------ ------------ ----------- ------------ ----------- Salary deferrals by participants 1,591,346 838,652 1,307,358 675,891 1,359,919 -- Rollover contributions by participants 268,887 93,231 174,570 104,981 159,668 -- Interest income 1,525,209 716 -- -- -- -- Dividend income -- 1,383,755 520,998 647,478 833,578 -- 3,385,422 4,449,153 2,002,926 1,428,350 2,353,165 -- DEDUCTIONS Withdrawals by participants (2,825,629) (3,543,334) (1,475,620) (651,934) (1,046,267) -- ------------ ------------ ------------ ----------- ------------ ----------- (2,825,629) (3,543,334) (1,475,620) (651,934) (1,046,267) -- Net appreciation (depreciation) in fair value of investments -- 18,197,643 5,220,988 831,717 2,076,416 4,674 Interfund transfers (3,118,168) 7,924 1,097,823 362,382 (1,365,083) -- ------------ ------------ ------------ ----------- ------------ ----------- Net increase (decrease) (2,558,355) 19,111,386 6,846,117 1,970,515 2,018,231 4,674 Assets available for benefits: Beginning of the year 27,733,684 37,137,923 16,716,969 6,474,184 12,056,221 47,276 ------------ ------------ ------------ ----------- ------------ ----------- End of the year $ 25,175,329 $ 56,249,309 $ 23,563,086 $ 8,444,699 $ 14,074,452 $ 51,950 ============ ============ ============ =========== ============ =========== FUND INFORMATION --------------------------------------------------------------------- DREYFUS FIDELITY COMPANY NEW EQUITY TEMPLETON SECURITIES LEADERS INCOME FOREIGN PARTICIPANT FUND FUND FUND FUND A LOANS TOTAL ----------- ----------- ----------- ------------- ------------- ------------- ADDITIONS Contributions by GATX Corporation and subsidiaries $ -- $ -- $ -- $ -- $ -- $ 2,132,799 Salary deferrals by participants -- 143,090 303,396 214,107 -- 6,433,759 Rollover contributions by participants -- 32,211 65,771 36,096 -- 935,415 Interest income -- -- -- -- 359,804 1,885,729 Dividend income -- 84,885 147,960 184,973 -- 3,803,627 ----------- ----------- ----------- ------------- ------------- ------------- -- 260,186 517,127 435,176 359,804 15,191,329 DEDUCTIONS Withdrawals by participants -- (24,258) (179,512) (48,779) (195,907) (9,991,240) ----------- ----------- ----------- ------------- ------------- ------------- -- (24,258) (179,512) (48,779) (195,907) (9,991,240) Net appreciation (depreciation) in fair value of investments 4,674 58,363 387,372 (143,332) -- 26,633,841 Interfund transfers -- 330,593 1,968,178 908,984 (192,633) -- ----------- ----------- ----------- ------------- ------------- ------------- Net increase (decrease) 4,674 624,884 2,693,165 1,152,049 (28,736) 31,833,930 Assets available for benefits: Beginning of the year 47,276 362,975 545,109 558,530 4,218,169 105,851,040 ----------- ----------- ----------- ------------- ------------- ------------- End of the year $ 51,950 $ 987,859 $ 3,238,274 $ 1,710,579 $ 4,189,433 $ 137,684,970 ====================================================================================
See notes to financial statements. 9 10 EIN 36-1124040 Plan #002 GATX Corporation Salaried Employees Retirement Savings Plan Notes to Financial Statements Years ended December 31, 1998 and 1997 1. DESCRIPTION OF THE PLAN The following description of the GATX Corporation (GATX or the Company) Salaried Employees Retirement Savings 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 is a defined-contribution plan which was established July 1, 1965, for salaried employees of GATX and each of its domestic subsidiaries which adopts or has adopted the Plan upon authorization by GATX. CONTRIBUTIONS Each year, participants may contribute up to 15% of pretax annual compensation, as defined in the Plan. Participants may also contribute amounts representing distributions from other qualified defined-benefit or defined-contribution plans. After a participant completes six months of service, GATX and its electing subsidiaries contribute an amount up to but not more than 50%, as determined from time to time by GATX, of the amount contributed by each participant but not to exceed 3% of the participant's compensation, as defined by the Plan. Company contributions are invested in GATX common stock and short-term investments. All contributions are made in cash and are deposited semi-monthly. PARTICIPANT ACCOUNTS Each participant's account is credited with the participant's contributions and allocation of Plan earnings. Allocations are based on account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant's account. 10 11 GATX Corporation Salaried Employees Retirement Savings Plan Notes to Financial Statements (continued) 1. DESCRIPTION OF THE PLAN (CONTINUED) VESTING Participants are immediately 100% vested in their contributions plus actual earnings thereon. INVESTMENT OPTIONS Participants may elect the following fund options: Managed Income Fund - A stable fund that preserves principal while earning interest income. GATX Corporation Common Stock Fund - A fund that consists of GATX Corporation common stock. Spartan U.S. Equity Index Fund - A growth and income mutual fund that invests primarily in S&P 500 companies. Puritan Fund - A balanced mutual fund that provides as much income as possible while preserving capital by investing in high yielding U.S. and foreign securities. Putnam Voyager Fund - A fund that seeks capital appreciation by investing primarily in common stocks. Phillips Petroleum Company Securities Fund - A fund that consists solely of Phillips Petroleum stock. Participants may not direct salary deferrals into this fund. Dreyfus New Leaders Fund - A fund that seeks capital appreciation by investing primarily in common stocks of smaller emerging companies. Fidelity Equity Income Fund - A fund that seeks reasonable income by investing in income-producing equity securities. Templeton Foreign Fund A - A growth mutual fund that invests primarily in international common stock. 11 12 GATX Corporation Salaried Employees Retirement Savings Plan Notes to Financial Statements (continued) 1. DESCRIPTION OF THE PLAN (CONTINUED) Participants may change their investment options four times per calendar year. PAYMENT OF BENEFITS In the event of retirement (as defined), death, permanent disability, or termination of employment, the vested balance in the participant's account will be distributed to the participant or the participant's beneficiary in a single lump-sum cash payment. WITHDRAWALS Withdrawals are available to participants for immediate and heavy financial need (as defined). The withdrawal amount is limited to the participant's contribution portion and cannot exceed the amount required to relieve the financial need. ADMINISTRATIVE EXPENSES It is the intent of the Company to pay the administrative expenses of the Plan, but if the Company fails to make the payments, or so directs, there may be a charge against the Plan for these expenses. PARTICIPANT LOANS A participant may borrow an amount up to the lesser of $50,000 or 50% of their account balance. Such loans, which are payable over a term specified by the Plan, bear interest at a rate of 1% above the prime rate and are secured by a participant's account balance in the Plan. PLAN TERMINATION Although it has not expressed any intent to do so, the Company has the right under the Plan to terminate the Plan subject to the provisions of ERISA. 12 13 GATX Corporation Salaried Employees Retirement Savings Plan Notes to Financial Statements (continued) 2. SIGNIFICANT ACCOUNTING POLICIES INVESTMENT VALUATION AND INCOME RECOGNITION The Banker's Trust group annuity contract is stated at contract value, which is determined by the insurance company in accordance with the terms of the contract. Contract value represents contributions made under the contract, plus interest at the contract rate, less withdrawals. The fair value of the participation units owned by the Plan in the mutual funds is based on quoted redemption values on the last business day of the Plan year. Participant loans are stated at cost which approximates fair value. Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. CONTRIBUTIONS Participant contributions are made through payroll deductions and recorded in the period the deductions are made. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires the plan administrator to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. RECLASSIFICATION Certain items in the 1997 financial statements have been reclassified to conform to the 1998 presentation. 13 14 GATX Corporation Salaried Employees Retirement Savings Plan Notes to Financial Statements (continued) 3. INVESTMENTS Except for investments held in a Master Trust (Note 4), the Plan's investments held during the year appreciated in fair value as follows:
YEAR ENDED DECEMBER 31 1998 1997 ----------- ----------- Netrealized and unrealized appreciation (depreciation) in fair value of investments: Spartan U.S. Equity Index Fund $ 6,121,788 $ 5,220,988 Fidelity Puritan Fund 407,858 831,717 Putnam Voyager Fund 2,124,662 2,076,416 Phillips Petroleum Company Securities Fund (6,411) 4,674 Dreyfus New Leaders Fund (90,498) 58,363 Fidelity Equity Income Fund 201,281 387,372 Templeton Foreign Fund A (277,386) (143,332) ----------- ----------- $ 8,481,294 $ 8,436,198 =========== ===========
Except for investments held in a Master Trust (Note 4), the Plan held the following investments with 5% or more of Plan assets at year-end:
YEAR ENDED DECEMBER 31 1998 1997 ----------- ----------- Bankers Trust Pyramid GIC Fund $ 8,986,805 $12,642,493 Fidelity Managed Income Portfolio II 15,089,178 11,540,501 Spartan U.S. Equity Index Fund 30,854,092 23,563,086 Fidelity Puritan Fund 9,492,958 8,444,699 Putnam Voyager Fund 17,364,579 14,074,452
14 15 GATX Corporation Salaried Employees Retirement Savings Plan Notes to Financial Statements (continued) 4. MASTER TRUST The GATX Corporation Stock Fund is in a Master Trust which includes the stock funds of three GATX benefit plans: the GATX Corporation Salaried Employees Retirement Savings Plan; the GATX Corporation Hourly Employees Retirement Savings Plan; and the GATX Logistics Inc. 401(k) Cash Accumulation Plan.
DECEMBER 31 1998 ----------- ASSETS GATX Corporation common stock $65,423,003 RECEIVABLES Other receivables 227,974 ----------- $65,650,977 =========== YEAR ENDED DECEMBER 31 1998 ----------- ADDITIONS Contributions $ 4,283,297 Interfund transfers 3,272,023 Loan repayments 380,641 Interest and dividend income 1,670,167 ----------- 9,606,128 DEDUCTIONS Benefit payments (2,868,899) Participant loans (571,065) ----------- (3,439,964) Net realized and unrealized appreciation in fair value of investments 2,788,325 Beginning of year 56,696,488 ----------- End of year $65,650,977 ===========
The plan has a 97.1% interest in the Master Trust. 15 16 5. TAX STATUS The Internal Revenue Service ruled August 4, 1995, that the Plan qualified under section 401(a) of the Internal Revenue Code (IRC) and, therefore, the related trust is not subject to tax under present income tax law. Once qualified, the Plan is required to operate in conformity with the IRC to maintain its qualification. The plan administrator is not aware of any course of action or series of events that have occurred that might adversely affect the Plan's qualified status. 6. YEAR 2000 ISSUE (UNAUDITED) The Company has developed a plan to modify its internal information technology to be ready for the year 2000, and has begun converting critical data processing systems. The project also includes determining whether third-party service providers have reasonable plans in place to become Year 2000 compliant. The Company expects the project to be complete by late 1999. The Company does not expect this project to have a significant effect on Plan operations. 16 17 SUPPLEMENTAL SCHEDULES 18 EIN 36-1124040 Plan #002 GATX Corporation Salaried Employees Retirement Savings Plan Line 27a - Schedule of Assets Held for Investment Purposes December 31, 1998
CURRENT IDENTITY OF ISSUER/DESCRIPTION OF ISSUE COST VALUE ----------- ----------- Fidelity Management Trust Company*: Bankers' Trust Pyramid GIC Fund $ 8,986,805 $ 8,986,805 Fidelity Managed Income Portfolio II 15,089,178 15,089,178 Spartan U.S. Equity Index Fund 18,380,552 30,854,092 Fidelity Puritan Fund 8,459,313 9,492,958 Putnam Voyager Fund 13,021,402 17,364,579 Phillips Petroleum Company Securities Fund 20,633 45,539 Dreyfus New Leaders Fund 1,274,045 1,225,786 Fidelity Equity Income Fund 3,859,371 4,312,324 Templeton Foreign Fund A 1,965,255 1,606,346 FMTC Institutional Money Market Fund 765,821 765,821 Participant Loans - 9.5% interest rate -- 4,680,574 ----------- ----------- $71,822,375 $94,424,002 =========== ===========
* Party in interest to the Plan. 17 19 EIN 36-112040 Plan #002 GATX Corporation Salaried Employees Retirement Savings Plan Line 27d - Schedule of Reportable Transactions Year ended December 31, 1998
TOTAL PURCHASE SELLING COST IDENTITY OF PARTY INVOLVED/DESCRIPTION OF ASSETS PRICE PRICE OF ASSET -------- ------- -------- Category (iii) - Series of transactions in excess of 5% of Plan assets Fidelity Management Trust Company*: Fidelity Managed Income Portfolio II $ 7,175,200 $ -- $ 7,175,200 -- 4,344,114 4,344,114 FMTC Institutional Money Market Fund 15,496,026 -- 15,496,026 -- 15,767,121 15,767,121 Putnam Voyager Fund 4,600,743 -- 4,600,743 -- 3,434,804 2,782,343 Spartan U.S. Equity Index Fund 5,694,238 -- 5,694,238 -- 4,525,682 3,260,493 CURRENT VALUE OF ASSET ON TRANSACTION NET IDENTITY OF PARTY INVOLVED/DESCRIPTION OF ASSETS DATE GAIN ------------ ---- Category (iii) - Series of transactions in excess of 5% of Plan assets Fidelity Management Trust Company*: Fidelity Managed Income Portfolio II $ $7,175,200 4,344,114 -- FMTC Institutional Money Market Fund 15,496,026 -- 15,767,121 -- Putnam Voyager Fund 4,600,743 -- 3,434,804 652,461 Spartan U.S. Equity Index Fund 5,694,238 -- 4,525,682 1,265,189
There were no category (i), (ii), or (iv) reportable transactions during the year ended December 31, 1998. 18 -----END PRIVACY-ENHANCED MESSAGE-----