SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE, SAVINGS
AND SIMILAR PLANS PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1998
-------------------------------------------
20TH CENTURY INDUSTRIES SAVINGS AND SECURITY PLAN
-------------------------------------------------
(Exact name of the plan)
20TH CENTURY INDUSTRIES
-----------------------
(Name of issuer)
Suite 700, 6301 Owensmouth Avenue, Woodland Hills, California 91367
--------------------------------------------------------------------
(Address of principal executive offices)
(Zip Code)
<PAGE>
20th Century Industries Savings and Security Plan
Financial Statements
and Supplemental Schedules
Years ended December 31, 1998 and 1997
<TABLE>
<CAPTION>
CONTENTS
<S> <C>
Report of Independent Auditors . . . . . . . . . . . . . . 1
Audited Financial Statements
Statements of Net Assets Available for Benefits. . . . . . 2
Statements of Changes in Net Assets Available for Benefits 3
Notes to Financial Statements. . . . . . . . . . . . . . . 4
Supplemental Schedules
Schedule of Assets Held for Investment Purposes. . . . . . 17
Schedule of Reportable Transactions. . . . . . . . . . . . 18
</TABLE>
<PAGE>
Report of Independent Auditors
20th Century Industries as Plan Administrator of the
20th Century Industries Savings and Security Plan
We have audited the accompanying statements of net assets available for benefits
of the 20th Century Industries Savings and Security Plan (the Plan) as of
December 31, 1998 and 1997, 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 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 years then ended, 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 purpose 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.
May 31, 1999
1
<PAGE>
<TABLE>
<CAPTION>
20th Century Industries Savings and Security Plan
Statements of Net Assets Available for Benefits
DECEMBER 31
1998 1997
------------ -----------
<S> <C> <C>
ASSETS
Investments, at fair value:
Mutual funds. . . . . . . . . . . . . . . . . $ 47,106,904 $35,992,167
20th Century Industries common stock. . . . . 6,588,404 6,666,816
Short-term investment funds . . . . . . . . . 152,137 187,338
------------ -----------
53,847,445 42,846,321
Guaranteed investment contract, at fair value 26,394,118 24,033,708
Loans to participants . . . . . . . . . . . . 6,514,036 6,092,041
------------ -----------
Total investments . . . . . . . . . . . . . . 86,755,599 72,972,070
------------ -----------
Net assets available for benefits . . . . . . $ 86,755,599 $72,972,070
============ ===========
See accompanying notes.
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
20th Century Industries Savings and Security Plan
Statements of Changes in Net Assets Available for Benefits
YEAR ENDED DECEMBER 31
1998 1997
----------- -----------
<S> <C> <C>
Additions to net assets:
Investment income:
Net appreciation in fair value of mutual funds . $ 6,288,236 $ 4,564,408
Net (depreciation) appreciation in fair value of
20th Century Industries common stock . . . . . (638,373) 2,265,339
Interest and dividends . . . . . . . . . . . . 3,913,849 3,751,747
Loan interest income . . . . . . . . . . . . . 590,855 481,551
----------- -----------
10,154,567 11,063,045
Contributions:
Employer . . . . . . . . . . . . . . . . . . . 2,728,229 2,715,927
Employee . . . . . . . . . . . . . . . . . . . 5,281,851 5,273,226
----------- -----------
8,010,080 7,989,153
----------- -----------
Total additions. . . . . . . . . . . 18,164,647 19,052,198
Deductions from net assets:
Benefits paid to participants. . . . . . . 4,356,670 2,169,165
Administrative expenses. . . . . . . . . . 24,448 16,025
----------- -----------
Net increase in net assets . . . . . . . . 13,783,529 16,867,008
Net assets available for benefits:
Beginning of year. . . . . . . . . . . . . 72,972,070 56,105,062
----------- -----------
End of year. . . . . . . . . . . . . . . . . . . $86,755,599 $72,972,070
============ ===========
See accompanying notes.
</TABLE>
3
<PAGE>
20th Century Industries Savings and Security Plan
Notes to Financial Statements
December 31, 1998
1. DESCRIPTION OF PLAN
The following brief description of the 20th Century Industries Savings and
Security Plan (Plan) provides only general information. Participants should
refer to the Plan Document for more complete information. Copies of the Plan
Document are available from the Human Resources Benefits Office.
GENERAL
The Plan is a defined contribution plan incorporating the provisions of Section
401(k) of the Internal Revenue Code and covering substantially all employees of
20th Century Industries (Employer). The Plan enables participants to make
contributions which the Employer matches in part. Contributions by and on behalf
of participants are invested in accordance with the participants' investment
designations in one or more investment options. Effective January 1, 1997,
Fidelity Investments began providing recordkeeping and trustee plan services,
and the Plan offered participants 10 new investment options. Plan participants
now have 15 investment options in which they may choose to have their funds
invested. Employees may elect to participate in the Plan upon becoming eligible,
which is after attaining the age of 20 and completing one year of service.
The Employer pays most of the Plan's administrative expenses. These expenses
include, but are not limited to, legal, accounting and recordkeeping fees.
However, loan fees are paid by participants, and investment expenses are paid by
the Plan.
The Plan is subject to the provisions of the Employee Retirement Income Security
Act of 1974 (ERISA).
CONTRIBUTIONS
Each participant can contribute up to 12% of earnings on a before-tax basis and
up to an additional 5% of earnings on an after-tax basis. The employer matches
$.75 for every dollar contributed by a participant (before tax) up to a maximum
of 6% of the participant's eligible earnings. Participants may change their
contribution percentages at any time during the Plan year. In addition, they may
elect to stop making contributions entirely. Effective June 17, 1991, employer
contributions follow the participant's fund election. Prior to June 17, 1991,
employer contributions were entirely invested in the Fixed Rate Fund.
4
<PAGE>
20th Century Industries Savings and Security Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF PLAN (CONTINUED)
VESTING
Participants are immediately vested in their own contributions. Vesting in the
Employer-contributed amount is based on years of service. A participant vests
20% after two years of service and an additional 20% for each additional year. A
participant is 100% vested after six years of credited service.
PARTICIPANT ACCOUNTS
Each participant's account is credited with his or her other contributions, any
Employer matching contribution and an allocation of Plan earnings, and is
charged with any withdrawals.
PARTICIPANT LOANS
Each participant may obtain loans against his or her vested account balance.
Loans made through October 31, 1989 are at the prime rate at the time of loan
approval plus one percent. Loans made on or after November 1, 1989 are at the
prime rate plus two percent. Loans made on or after September 20, 1990, for the
purchase of a home are at the prime rate.
PAYMENT OF BENEFITS
Upon termination of service, a participant may generally elect to receive the
value of his or her account in either a lump-sum amount (if eligible) or in
installment payments for up to 15 years. Benefits become payable to participants
upon their termination of employment with the Employer or in the event of
elective withdrawal as permitted by the Plan.
PLAN TERMINATION
Although it has not expressed any intention to do so, the Employer has the right
under the Plan to terminate the Plan subject to the provisions set forth in
ERISA. Should the Plan terminate, or should contributions be discontinued, at
some future time, the rights of each affected participant to the entire amount
credited to his or her account on the date of such termination or discontinuance
shall be non-forfeitable and fully vested. Payment of such amounts to each
participant or beneficiary, upon the termination of the Plan or upon the
5
<PAGE>
1. DESCRIPTION OF PLAN (CONTINUED)
PLAN TERMINATION (CONTINUED)
complete discontinuance of contributions under the Plan, shall be made by the
Plan administrator at such time and in such manner as the Plan administrator
shall state, provided, however, that all participants and beneficiaries
similarly situated shall be treated in a nondiscriminatory manner.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
USE OF ESTIMATES
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect amounts reported in the financial statements and accompanying notes.
Actual results could differ from these estimates.
VALUATION OF INVESTMENTS
Investments are reported at fair value, using quoted market prices. Participant
loans are reported at amounts owed by the participants.
3. FIXED RATE FUND
The fixed rate fund is a guaranteed investment contract consisting of funds
deposited with Pacific Life Insurance Company (Pacific Life). Pacific Life
maintains the contributions in an unallocated account, with a guaranteed
interest rate which is set annually not less than 30 days prior to the beginning
of the Plan year. The set rate was 6.60% for 1998 and 1997. The account is
credited with deposits and interest earnings and charged with Plan withdrawals.
The Employer pays the contract administration charge.
Per the contract, no transfer may be made out of the account by an individual
participant directly to a competing fixed income fund offered by the Plan.
The Employer may cancel the contract at any time by giving notice to Pacific
Life. Ordinarily, transfer of the balance in the account would be made in four
substantially equal annual installments starting within 90 days of cancellation.
However, if the announced guaranteed interest rate is less than the current rate
and the balance in the
6
<PAGE>
3. FIXED RATE FUND (CONTINUED)
account 60 days prior to the end of the Plan Year exceeds 75% of the balance in
the account at the beginning of the current Plan Year, the Employer may cancel
the contract within 30 days of the new rate announcement and may withdraw the
total account balance within 30 days of cancellation.
4. INVESTMENTS
The Plan's investments are invested in the Pacific guaranteed investment
contract, in 20th Century Industries Common Stock (20th Century Industries
Stock) and in 13 mutual funds administered by Fidelity Investments, which also
acts as trustee for the Plan. Funds in transit to and from any of the investment
options and the Plan Sponsor of the participants or other investment options are
temporarily invested in short-term investments by the trustee.
The following table presents the Plan's investments:
<TABLE>
<CAPTION>
DECEMBER 31
1998 1997
------------ ------------
<S> <C> <C>
Investments at fair value:
Guaranteed Investment Contract . . . . . . . $26,394,118* $24,033,708*
Mutual Funds:
Fidelity Magellan Fund . . . . . . . . . . . 21,114,005* 15,391,518*
Fidelity Equity-Income Fund. . . . . . . . . 14,577,473* 14,387,598*
Spartan U.S. Equity Index Fund . . . . . . . 4,407,402* 1,952,205
Fidelity Contrafund. . . . . . . . . . . . . 3,265,039 1,574,580
Retirement Government Money Market Portfolio 1,141,684 820,788
INVESCO Small Company Growth Fund. . . . . . 582,653 550,022
Founders Balanced Fund . . . . . . . . . . . 614,868 463,215
Templeton Foreign Fund I . . . . . . . . . . 380,544 369,174
Fidelity Freedom 2000 Fund . . . . . . . . . 82,450 63,838
Fidelity Freedom 2010 Fund . . . . . . . . . 483,454 243,235
Fidelity Freedom 2020 Fund . . . . . . . . . 295,886 99,737
Fidelity Freedom 2030 Fund . . . . . . . . . 149,211 74,680
Fidelity Freedom Income Fund . . . . . . . . 12,235 1,577
20th Century Industries Stock. . . . . . . . 6,588,404* 6,666,816*
Loans to participants. . . . . . . . . . . . 6,514,036* 6,092,041*
Short-Term Investment Funds. . . . . . . . . 152,137 187,338
------------ ------------
$ 86,755,599 $ 72,972,070
============ ============
<FN>
*Represents 5% or more of the fair value of net assets available for benefits.
</TABLE>
7
<PAGE>
4. INVESTMENTS (CONTINUED)
Interest and dividend income was $3,913,849 for 1998 and $3,751,747 for 1997.
Net appreciation in fair value of mutual funds and Company stock was $5,649,863
for 1998 and $6,829,747 for 1997.
5. INCOME TAX STATUS
The Internal Revenue Service has issued a determination letter dated May 11,
1995 that the Plan qualifies, in form, under Section 401(a) and 401(k) of the
Internal Revenue Code of 1986, as amended (the Code), and the underlying trust
is, therefore, exempt from federal income taxes under Section 501(a) of the
Code. The Plan is required to operate in accordance with the Code to maintain
its tax qualification. The Plan administrator is not aware of any course of
actions or series of events that have occurred which might adversely affect the
Plan's qualified status.
6. 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 formal
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 the end of 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 a material
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
<PAGE>
7. FINANCIAL STATEMENTS FOR PARTICIPANT-DIRECTED INVESTMENT FUNDS
The following table presents the net assets available for benefits by investment
option and participant loans at December 31, 1998:
<TABLE>
<CAPTION>
PACIFIC LIFE 20TH FIDELITY RETIREMENT FIDELITY
FIXED CENTURY FIDELITY EQUITY- GOVERNMENT FREEDOM
RATE INDUSTRIES MAGELLAN INCOME MONEY FIDELITY INCOME
FUND COMMON FUND FUND MARKET CONTRAFUND FUND
------------- ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at fair value:
Mutual funds. . . . . . . . . .$ $ $ 21,114,005 $ 14,577,473 $ 1,141,684 $ 3,265,039 $ 12,235
Common stock. . . . . . . . . - 6,588,404 - - - - -
Short-term investment funds . - 152,137 - - - - -
------------- ------------ ------------ ------------ ------------ ------------ ------------
Total . . . . . . . . . . . . . . - 6,740,541 21,114,005 14,577,473 1,141,684 3,265,039 12,235
Guaranteed investment contract. . 26,394,118 - - - - - -
Loans to participants - - - - - - -
------------- ------------ ------------ ------------ ------------ ------------ ------------
Total investments . . . . . . . . 26,394,118 6,740,541 21,114,005 14,577,473 1,141,684 3,265,039 12,235
------------- ------------ ------------ ------------ ------------ ------------ ------------
Net assets available for benefits $ 26,394,118 $ 6,740,541 $ 21,114,005 $ 14,577,473 $ 1,141,684 $ 3,265,039 $ 12,235
============= =========== ============ ============ ============ ============ ===========
. . . . . . . . . . . . FIDELITY
. . . . . . . . . . . . . FREEDOM
2000
. . . . . . . . . . . . . . . FUND
-------------
<S> <C>
ASSETS
Investments at fair value:
Mutual funds. . . . . . . . . .$ 82,450
Common stock. -
Short-term investment funds . -
-------------
Total . . . . . . . . . . . . . . 82,450
Guaranteed investment contract. . -
Loans to participants -
-------------
Total investments . . . . . . . . 82,450
-------------
Net assets available for benefits $ 82,450
============
</TABLE>
9
<PAGE>
<TABLE>
<CAPTION>
. . . . . . . . . . . . FIDELITY FIDELITY FIDELITY SPARTAN
. . . . . . . . . . . . . FREEDOM FREEDOM FREEDOM U.S. EQUITY FOUNDERS INVESCO TEMPLETON
2010 2020 2030 INDEX BALANCED SMALL COMPANY FOREIGN
. . . . . . . . . . . . . . . FUND FUND FUND FUND FUND GROWTH FUND FUND I
------------- ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at fair value:
Mutual funds. . . . . . . . . .$ 483,454 $ 295,886 $ 149,211 $ 4,407,402 $ 614,868 $ 582,653 $ 380,544
Common stock. - - - - - - -
Short-term investment funds . - - - - - - -
------------- ------------ ------------ ------------ ------------ ------------ ------------
Total . . . . . . . . . . . . . . 483,454 295,886 149,211 4,407,402 614,868 582,653 380,544
Guaranteed investment contract. . - - - - - - -
Loans to participants - - - - - - -
------------- ------------ ------------ ------------ ------------ ------------ ------------
Total investments . . . . . . . . 483,454 295,886 149,211 4,407,402 614,868 582,653 380,544
------------- ------------ ------------ ------------ ------------ ------------ ------------
Net assets available for benefits $ 483,454 $ 295,886 $ 149,211 $ 4,407,402 $ 614,868 $ 582,653 $ 380,544
============ ============ ============ ============ ============ ============ ===========
PARTICIPANT
. . . . . . . . . . . . . . . LOANS TOTAL
------------- ------------
<S> <C> <C>
ASSETS
Investments at fair value:
Mutual funds. . . . . . . . . .$ - $ 47,106,904
Common stock. - 6,588,404
Short-term investment funds . - 152,137
------------- ------------
Total . . . . . . . . . . . . . . - 53,847,445
Guaranteed investment contract. . - 26,394,118
Loans to participants 6,514,036 6,514,036
------------- ------------
Total investments . . . . . . . . 6,514,036 86,755,599
------------- ------------
Net assets available for benefits $ 6,514,036 $ 86,755,599
============ ============
</TABLE>
10
<PAGE>
20th Century Industries Savings and Security Plan
Notes to Financial Statements (continued)
7. FINANCIAL STATEMENTS FOR PARTICIPANT-DIRECTED INVESTMENT FUNDS (CONTINUED)
The following table presents the net assets available for benefits by investment
option and participant loans at December 31, 1997:
<TABLE>
<CAPTION>
PACIFIC LIFE 20TH FIDELITY RETIREMENT FIDELITY
FIXED CENTURY FIDELITY EQUITY- GOVERNMENT FREEDOM
RATE INDUSTRIES MAGELLAN INCOME MONEY FIDELITY INCOME
FUND COMMON FUND FUND MARKET CONTRAFUND FUND
------------- ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at fair value:
Mutual funds. . . . . . . . . .$ - $ - $ 15,391,518 $ 14,387,598 $ 820,788 $ 1,574,580 $ 1,577
Common stock. . . . . . . . . 6,666,816 - - - - -
Short-term investment funds . - 187,338 - - - - -
------------- ------------ ------------ ------------ ------------ ------------ ------------
Total . . . . . . . . . . . . . . - 6,854,154 15,391,518 14,387,598 820,788 1,574,580 1,577
Guaranteed investment contract. . 24,033,708 - - - - - -
Loans to participants - - - - - - -
------------- ------------ ------------ ------------ ------------ ------------ ------------
Total investments . . . . . . . . 24,033,708 6,854,154 15,391,518 14,387,598 820,788 1,574,580 1,577
------------- ------------ ------------ ------------ ------------ ------------ ------------
Net assets available for benefits $ 24,033,708 $ 6,854,154 $ 15,391,518 $ 14,387,598 $ 820,788 $ 1,574,580 $ 1,577
============ ============ ============ ============ ============ ============ ===========
. . . . . . . . . . . . FIDELITY
. . . . . . . . . . . . . FREEDOM
2000
. . . . . . . . . . . . . . . FUND
-------------
<S> <C>
ASSETS
Investments at fair value:
Mutual funds. . . . . . . . . .$ 63,838
Common stock. -
Short-term investment funds . -
-------------
Total . . . . . . . . . . . . . . 63,838
Guaranteed investment contract. . -
Loans to participants -
-------------
Total investments . . . . . . . . 63,838
-------------
Net assets available for benefits $ 63,838
============
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
. . . . . . . . . . . . FIDELITY FIDELITY FIDELITY SPARTAN
. . . . . . . . . . . . . FREEDOM FREEDOM FREEDOM U.S. EQUITY FOUNDERS INVESCO TEMPLETON
2010 2020 2030 INDEX BALANCED SMALL COMPANY FOREIGN
. . . . . . . . . . . . . . . FUND FUND FUND FUND FUND GROWTH FUND FUND I
------------- ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at fair value:
Mutual funds. . . . . . . . . .$ 243,235 $ 99,737 $ 74,680 $ 1,952,205 $ 463,215 $ 550,022 $ 369,174
Common stock. - - - - - - -
Short-term investment funds . - - - - - - -
------------- ------------ ------------ ------------ ------------ ------------ ------------
Total . . . . . . . . . . . . . . 243,235 99,737 74,680 1,952,205 463,215 550,022 369,174
Guaranteed investment contract. . - - - - - - -
Loans to participants - - - - - - -
------------- ------------ ------------ ------------ ------------ ------------ ------------
Total investments . . . . . . . . 243,235 99,737 74,680 1,952,205 463,215 550,022 369,174
------------- ------------ ------------ ------------ ------------ ------------ ------------
Net assets available for benefits$ 243,235 $ 99,737 $ 74,680 $ 1,952,205 $ 463,215 $ 550,022 $ 369,174
============= ============ ============ ============ ============ ============ ===========
PARTICIPANT
. . . . . . . . . . . . . . . LOANS TOTAL
------------- ------------
<S> <C> <C>
ASSETS
Investments at fair value:
Mutual funds. . . . . . . . . .$ - $ 35,992,167
Common stock. - 6,666,816
Short-term investment funds . - 187,338
------------- ------------
Total . . . . . . . . . . . . . . - 42,846,321
Guaranteed investment contract. . - 24,033,708
Loans to participants 6,092,041 6,092,041
------------- ------------
Total investments . . . . . . . . 6,092,041 72,972,070
------------- ------------
Net assets available for benefits $ 6,092,041 $ 72,972,070
============ ============
</TABLE>
12
<PAGE>
20th Century Industries Savings and Security Plan
Notes to Financial Statements (continued)
7. FINANCIAL STATEMENTS FOR PARTICIPANT-DIRECTED INVESTMENT FUNDS (CONTINUED)
The following table presents the changes in net assets available for benefits by
investment option and participant loans for the year ended December 31, 1998:
<TABLE>
<CAPTION>
PACIFIC LIFE 20TH FIDELITY RETIREMENT FIDELITY
FIXED CENTURY FIDELITY EQUITY- GOVERNMENT FREEDOM
RATE INDUSTRIES MAGELLAN INCOME MONEY FIDELITY INCOME
FUND COMMON FUND FUND MARKET CONTRAFUND FUND
------------- ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets:
Investment income:
Net appreciation
(depreciation) in fair
value .. $ (3) $ - $ 4,233,841 $ 864,902 $ - $ 385,890 $ -
Net depreciation in fair
value of 20th Century
Industries common stock. (638,373) - - - - - -
Interest and dividends . . . 1,568,236 - 984,313 845,543 45,404 239,337 260
Loan interest income . . . . . 150,130 106,646 139,040 96,284 4,708 26,247 808
Contributions:
Employer . .. . . . . . . . 635,766 419,295 638,137 509,138 51,703 127,334 2,949
Employee . . . . . . . 1,169,927 823,495 1,180,782 1,002,010 105,619 255,212 5,403
------------- ------------ ------------ ------------ ------------ ------------ ------------
Total additions. . . . . . . . 3,524,056 711,063 7,176,113 3,317,877 207,434 1,034,020 9,688
Deductions from net assets:
Benefits paid to participants. 1,926,911 266,788 909,412 667,932 60,509 27,110 219
Administrative expenses. . . 13,857 4,319 2,428 288 4 116 -
Loans to participants. . . . 873,601 440,924 791,015 639,603 27,837 89,320 -
Loan payments. . . . . .. . . (623,378) (348,767) (523,425) (388,848) (18,468) (90,368) (1,495)
Participant transfers
(received) paid. . . . . . . . (1,027,345) 461,412 274,196 2,209,028 (183,344) (682,617) 306
------------- ------------ ------------ ------------ ------------ ------------ ------------
Total deductions . . .. . . . . 1,163,646 824,676 1,453,626 3,128,003 (113,462) (656,439) (970)
------------- ------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease). .. . . 2,360,410 (113,613) 5,722,487 189,874 320,896 1,690,459 10,658
Net assets available for benefits:
Beginning of year. . . . . . 24,033,708 6,854,154 15,391,518 14,387,598 820,788 1,574,580 1,577
------------- ------------ ------------ ------------ ------------ ------------ ------------
End of year . . . . . . . . $ 26,394,118 $ 6,740,541 $ 21,114,005 $ 14,577,472 $ 1,141,684 $ 3,265,039 $ 12,235
============= ============ ============ ============ ============ ============ ===========
FIDELITY
FREEDOM
2000
FUND
-------------
<S> <C>
Additions to net assets:
Investment income:
Net appreciation
(depreciation) in fair
value .. $ 6,385
Net depreciation in fair
value of 20th Century
Industries common stock. -
Interest and dividends . . . 4,362
Loan interest income . . . . . 163
Contributions:
Employer . .. . . . . . . . 2,027
Employee . . . . . . . 5,341
-------------
Total additions. . . . . . . . 18,728
Deductions from net assets:
Benefits paid to participants. 139
Administrative expenses. . . -
Loans to participants. . . . 258
Loan payments. . . . . .. . . (403)
Participant transfers
(received) paid. . . . . . . . 122
-------------
Total deductions . . .. . . . . 116
-------------
Net increase (decrease). .. . . 18,612
Net assets available for benefits:
Beginning of year. . . . . . 63,838
-------------
End of year . . . . . . . . $ 82,450
=============
</TABLE>
13
<PAGE>
<TABLE>
<CAPTION>
. . . . . . . . . . . . FIDELITY FIDELITY FIDELITY SPARTAN
. . . . . . . . . . . . . FREEDOM FREEDOM FREEDOM U.S. EQUITY FOUNDERS INVESCO TEMPLETON
2010 2020 2030 INDEX BALANCED SMALL COMPANY FOREIGN
. . . . . . . . . . . . . . . FUND FUND FUND FUND FUND GROWTH FUND FUND I
------------- ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Additions to net assets:
Investment income:
Net appreciation
(depreciation) in fair
value .. $ 42,507 $ 32,294 $ 16,532 $ 720,010 $ 33,168 $ 12,853 $ (60,861)
Net depreciation in fair
value of 20th Century
Industries common stock. - - - - - - -
Interest and dividends . . . 19,683 9,644 6,238 63,632 34,732 53,304 39,161
Loan interest income . . . . . 3,295 3,625 3,173 37,032 5,309 8,221 6,174
Contributions:
Employer . .. . . . . . . . 20,311 21,103 19,650 154,508 38,211 49,530 38,567
Employee . . . . . . . 43,681 44,053 37,184 303,872 124,682 99,170 81,420
------------- ------------ ------------ ------------ ------------ ------------ ------------
Total additions. . . . . . . . 129,477 110,719 82,777 1,279,054 236,102 223,078 104,461
Deductions from net assets:
Benefits paid to participants. 5,488 2,483 5,645 25,875 10,049 5,724 6,176
Administrative expenses. . . - 1 93 4 1,066 1,524 748
Loans to participants. . . . 9,497 12,681 8,477 120,181 27,321 43,366 23,927
Loan payments. . . . . .. . . (7,997) (17,897) (10,994) (136,394) (21,322) (33,150) (26,867)
Participant transfers
(received) paid. . . . . . . . (117,730) (82,698) 5,055 (1,185,809) 67,335 172,983 89,106
------------- ------------ ------------ ------------ ------------ ------------ ------------
Total deductions . . .. . . . . . (110,742) (85,430) 8,246 (1,176,143) 84,449 190,447 93,090
------------- ------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease). .. . . 240,219 196,149 74,531 2,455,197 151,653 32,631 11,371
Net assets available for benefits:
Beginning of year. . . . . . 243,235 99,737 74,680 1,952,205 463,215 550,022 369,174
------------- ------------ ------------ ------------ ------------ ------------ ------------
End of year . . . . . . . . $ 483,454 $ 295,886 $ 149,211 $ 4,407,402 $ 614,868 $ 582,653 $ 380,545
============= ============ ============ ============ ============ ============ ===========
PARTCIPANT
LOANS TOTAL
------------- ------------
<S> <C> <C>
Additions to net assets:
Investment income:
Net appreciation
(depreciation) in fair
value .. $ - $ 6,288,236
Net depreciation in fair
value of 20th Century
Industries common stock. - (638,373)
Interest and dividends . . . - 3,913,849
Loan interest income . . . . . - 590,855
Contributions:
Employer . .. . . . . . . . - 2,728,229
Employee . . . . . . . - 5,281,851
------------- ------------
Total additions. . . . . . . . - 18,164,647
Deductions from net assets:
Benefits paid to participants. 436,210 4,356,670
Administrative expenses. . . - 24,448
Loans to participants. . . . (3,107,978) -
Loan payments. . . . . .. . . 2,249,773 -
Participant transfers
(received) paid. . . . . . . . - -
------------- ------------
Total deductions . . .. . . . . (421,995) 4,381,118
------------- ------------
Net increase (decrease). .. . . 421,995 13,783,529
Net assets available for benefits:
Beginning of year. . . . . . 63,838 72,972,070
------------- ------------
End of year . . . . . . . . $ 82,450 $ 86,755,599
============= ============
</TABLE>
14
<PAGE>
20th Century Industries Savings and Security Plan
Notes to Financial Statements (continued)
7. FINANCIAL STATEMENTS FOR PARTICIPANT-DIRECTED INVESTMENT FUNDS (CONTINUED)
The following table presents the changes in net assets available for benefits by
investment option and participant loans for the year ended December 31, 1997:
<TABLE>
<CAPTION>
PACIFIC LIFE 20TH FIDELITY RETIREMENT FIDELITY
FIXED CENTURY FIDELITY EQUITY- GOVERNMENT FREEDOM
RATE INDUSTRIES MAGELLAN INCOME MONEY FIDELITY INCOME
FUND COMMON FUND FUND MARKET CONTRAFUND FUND
------------- ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets:
Investment income:
Net appreciation
(depreciation) in fair
value .. $ (809) $ - $ 2,068,453 $ 2,363,440 $ 1,158 $ 38,6880 $ 92
Net depreciation in fair
value of 20th Century
Industries common stock. - 2,265,339 - - - - -
Interest and dividends . . . 1,585,910 57 971,652 767,194 40,165 126,296 61
Loan interest income . . . . . 147,687 73,696 114,318 85,518 5,407 15,648 66
Contributions:
Employer . .. . . . . . . . 736,943 419,138 656,491 552,638 49,528 88,231 465
Employee . . . . . . . 1,432,072 799,369 1,153,337 1,063,883 116,345 187,187 865
------------- ------------ ------------ ------------ ------------ ------------ ------------
Total additions. . . . . . . . 3,901,803 3,557,599 4,964,251 4,832,673 212,603 456,050 1,549
Deductions from net assets:
Benefits paid to participants. 1,238,930 118,793 231,619 383,825 18,877 4,180 -
Administrative expenses. . . 10,494 2,235 1,183 143 - 62 -
Loans to participants. . . . 1,152,935 376,644 792,966 570,243 43,620 68,268 -
Loan payments. . . . . .. . . (555,541) (263,212) (399,764) (300,657) (17,873) (85,727) (299)
Participant transfers
(received) paid. . . . . . . . 2,782,768 333,317 883,533 (251,890) 68,075 (1,105,313) 271
------------- ------------ ------------ ------------ ------------ ------------ ------------
Total deductions . . .. . . . . 4,629,586 567,777 1,509,537 401,664 112,699 (1,118,530) (28)
------------- ------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease). .. . . (727,783) 2,989,822 3,454,714 4,431,009 1,574,580 1,574,580 1,577
Net assets available for benefits:
Beginning of year. . . . . . 24,761,491 3,864,332 11,936,804 9,956,589 720,884 - -
------------- ------------ ------------ ------------ ------------ ------------ ------------
End of year . . . . . . . . $ 24,033,708 $ 6,854,154 $ 15,391,518 $ 14,387,598 $ 820,788 $ 1,574,580 $ 1,577
============= ============ ============ ============ ============ ============ ===========
FIDELITY
FREEDOM
2000
FUND
-------------
<S> <C>
Additions to net assets:
Investment income:
Net appreciation
(depreciation) in fair
value .. $ (303)
Net depreciation in fair
value of 20th Century
Industries common stock. -
Interest and dividends . . . 2,080
Loan interest income . . . . . -
Contributions:
Employer . .. . . . . . . . 454
Employee . . . . . . . 1,498
-------------
Total additions. . . . . . . . 3,729
Deductions from net assets:
Benefits paid to participants. -
Administrative expenses. . . -
Loans to participants. . . . -
Loan payments. . . . . .. . . -
Participant transfers
(received) paid. . . . . . . . (60,109)
-------------
Total deductions . . .. . . . . (60,109)
-------------
Net increase (decrease). .. . . 63,838
Net assets available for benefits:
Beginning of year. . . . . . -
-------------
End of year . . . . . . . . $ 63,838
=============
</TABLE>
15
<PAGE>
<TABLE>
<CAPTION>
. . . . . . . . . . . . FIDELITY FIDELITY FIDELITY SPARTAN
. . . . . . . . . . . . . FREEDOM FREEDOM FREEDOM U.S. EQUITY FOUNDERS INVESCO TEMPLETON
2010 2020 2030 INDEX BALANCED SMALL COMPANY FOREIGN
. . . . . . . . . . . . . . . FUND FUND FUND FUND FUND GROWTH FUND FUND I
------------- ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Additions to net assets:
Investment income:
Net appreciation
(depreciation) in fair
value .. $ 9,636 $ 3,431 $ 8,844 $ 198,025 $ (2,186) $ (68,849) $ (55,212)
Net depreciation in fair
value of 20th Century
Industries common stock. - - - - - - -
Interest and dividends . . . 8,559 3,424 2,464 28,440 36,331 119,570 59,544
Loan interest income . . . . . 2,298 1,813 3,189 15,948 3,640 6,543 -
Contributions:
Employer . .. . . . . . . . 11,032 10,368 13,264 79,242 29,367 33,317 35,089
Employee . . . . . . . 49,386 22,785 27,968 181,455 96,994 64,762 75,320
------------- ------------ ------------ ------------ ------------ ------------ ------------
Total additions. . . . . . . . 80,911 41,821 56,089 503,110 164,146 154,580 121,284
Deductions from net assets:
Benefits paid to participants. 5,697 3,013 2,187 45,171 780 1,694 2,399
Administrative expenses. . . - - 1 - 725 667 515
Loans to participants. . . . 2,595 4,514 5,441 68,064 18,882 12,858 19,752
Loan payments. . . . . .. . . (5,268) (6,677) (7,619) (66,393) (21,296) (25,209) (42,168)
Participant transfers
(received) paid. . . . . . . . (165,348) (58,766) (18,601) (1,495,937) (298,160) (385,452) (228,388)
------------- ------------ ------------ ------------ ------------ ------------ ------------
Total deductions . . .. . . . . . (162,324) (57,916) (18,591) (1,449,095) (299,069) (395,442) (247,890)
------------- ------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease). .. . . 243,235 99,737 74,680 1,952,205 463,215 550,022 369,174
Net assets available for benefits:
Beginning of year. . . . . . - - - - - - -
------------- ------------ ------------ ------------ ------------ ------------ ------------
End of year . . . . . . . . $ 243,235 $ 99,737 $ 74,680 $ 1,952,205 $ 463,215 $ 550,022 $ 369,174
============= ============ ============ ============ ============ ============ ===========
PARTCIPANT
LOANS TOTAL
------------- ------------
<S> <C> <C>
Additions to net assets:
Investment income:
Net appreciation
(depreciation) in fair
value .. $ - $ 4,564,408
Net depreciation in fair
value of 20th Century
Industries common stock. - 2,265,339
Interest and dividends . . . - 3,751,747
Loan interest income . . . . . - 481,551
Contributions:
Employer . .. . . . . . . . - 2,715,927
Employee . . . . . . . - 5,273,2261
------------- ------------
Total additions. . . . . . . . - 19,052,198
Deductions from net assets:
Benefits paid to participants. 112,000 2,169,165
Administrative expenses. . . - 16,025
Loans to participants. . . . (3,136,782) -
Loan payments. . . . . .. . . 1,797,703 -
Participant transfers
(received) paid. . . . . . . . - -
------------- ------------
Total deductions . . .. . . . . (1,227,079) 2,185,190
------------- ------------
Net increase (decrease). .. . . 1,227,079 16,867,008
Net assets available for benefits:
Beginning of year. . . . . . 4,864,962 56,105,062
------------- ------------
End of year . . . . . . . . $ 6,092,041 $ 72,972,070
============= ============
</TABLE>
16
<PAGE>
Supplemental Schedules
17
<PAGE>
20th Century Industries Savings and Security Plan
Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
IDENTITY OF ISSUE, DESCRIPTION OF INVESTMENT, INCLUDING MATURITY DATE,
BORROWER, LESSOR RATE OF INTEREST, PAR OR CURRENT
OR SIMILAR PARTY MATURITY VALUE COST VALUE
- ----------------------------------------------- ---------------------------------------------------- ----------- -----------
<S> <C> <C> <C>
Pacific Life Insurance Company. . . . . . . . . Guaranteed Investment Contract $26,394,118 $26,394,118
Fidelity Retirement Government Money Market (1) Money Market Fund 1,141,684 1,141,684
Fidelity Equity-Income Fund (1). . . . .. . . . 262,421 Mutual Fund Shares 11,099,948 14,577,473
Fidelity Magellan Fund (1). . . . . . . . . . . 174,756 Mutual Fund Shares 14,907,583 21,114,005
Fidelity Freedom Income Fund (1). . . . . . . . 1,094 Mutual Fund Shares 11,988 12,235
Fidelity Freedom 2000 Fund (1). . . . . . . . . 6,687 Mutual Fund Shares 76,239 82,450
Fidelity Freedom 2010 Fund (1). . . . . . . . . 36,350 Mutual Fund Shares 434,022 483,454
Fidelity Freedom 2020 Fund (1). . . . . . . . . 21,210 Mutual Fund Shares 267,128 295,886
Fidelity Freedom 2030 Fund (1). . . . . . . . 10,742 Mutual Fund Shares 132,875 149,211
Fidelity Founders Balanced Fund (1) . . . . . . 50,440 Mutual Fund Shares 591,585 614,868
Spartan U.S. Equity Index Fund. . . . . . . . . 100,259 Mutual Fund Shares 3,624,272 4,407,402
Fidelity Contrafund (1) . . . . . . . . . . . . 57,493 Mutual Fund Shares 2,893,452 3,265,039
INVESCO Small Company Growth Fund . . . . . . . 50,315 Mutual Fund Shares 603,001 582,653
Templeton Foreign Fund I. . . . . . . . . . . . 45,357 Mutual Fund Shares 454,456 380,544
Fidelity Short Term Investment Fund (1) . . . . Short Term Investment Fund 152,137 152,137
20th Century Industries Common Stock (1). . . . 284,136 Common Stock Shares 5,464,621 6,588,404
Participant Loans (1) . . . . . . . . . . . . . Interest rates between 8.5% and 10.5% 6,514,036 6,514,036
----------- ------------
$74,763,145 $86,755,599
=========== ===========
<FN>
(1) Party-in-interest to the Plan.
</TABLE>
18
<PAGE>
20th Century Industries Savings and Security Plan
Schedule of Reportable Transactions
Year ended December 31, 1998
<TABLE>
<CAPTION>
CURRENT
EXPENSES VALUE OF
PURCHASE SELLING INCURRED COST OF ASSET ON
PRICE PRICE WITH ASSET TRANSACTION NET GAIN
DESCRIPTION OF ASSETS TRANSACTION DATE
- ----------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Category (iii) - Series of transactions in excess of 5% of the current value of plan assets.
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Pacific Life Insurance Company. . . $ 14,054,406 $ - $ 14,054,406 $ 14,054,406 $ -
$ 11,693,993 - 11,693,993 11,693,993 -
Fidelity Magellan Fund (1). . . . 7,494,396 - 7,494,396 7,494,396 -
6,005,750 - 5,337,590 6,005,750 668,160
Fidelity Equity - Income Fund (1) . . 4,326,718 - 4,326,718 4,326,718 -
5,001,746 - 4,049,032 5,001,746 952,714
Fidelity Contrafund (1) . . . . . . . . .3,192,949. . . . . . . . . . . . . . .- . . 3,192,949 3,192,949 -
1,888,380 - 1,867,179 1,888,380 21,201
Spartan U.S. Equity Index Fund. . . 4,970,333 - 4,970,333 4,970,333 -
3,235,146 - 3,122,701 3,235,146 112,445
<FN>
(1) Party-in-interest to the Plan.
There were no category (i), (ii) or (iv) reportable transactions during 1998
</TABLE>
19
<PAGE>
Consent of Independent Auditors
We consent to the incorporation by reference in the Registration Statement (Form
8 No. 33-80180) pertaining to 20th Century Industries Savings and Security Plan
of our report dated May 31, 1999, with respect to the financial statements and
schedules of 20th Century Industries Savings and Security Plan included in this
Annual Report (Form 11-K) for the year ended December 31, 1998.
ERNST & YOUNG LLP
Los Angeles, California
June 28, 1999
20
<PAGE>
SIGNATURES
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.
20th Century Industries Savings
and Security Plan
Date: June 28, 1999 /s/ Richard Andre
-----------------------------
Richard Andre, Vice President
20th Century Industries
Chairman Benefits Committee
21
<PAGE>
