ELECTRONIC DATA SYSTEMS CORPORATION
EDS PUERTO RICO SAVINGS PLAN
FORM 11-K
ANNUAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 1998
FILED PURSUANT TO SECTION 15(d)
OF THE
SECURITIES EXCHANGE ACT OF 1934
<PAGE>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549-1004
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 TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________ to ________
Commission file number 1-11779
EDS PUERTO RICO SAVINGS PLAN
(Full title of the plan)
Electronic Data Systems Corporation
5400 Legacy Drive
Plano, Texas 75024-3105
(Name of issuer of the securities held pursuant to
the plan and the address of its principal
executive offices)
Registrant's telephone number, including area code: (972) 604-6000
Notices and communications from the Securities and the Exchange Commission
relative to this report should be forwarded to:
H. Paulett Eberhart, Senior
Vice President
Electronic Data Systems Corporation
5400 Legacy Drive
Plano, Texas 75024-3105
<PAGE>
FINANCIAL STATEMENTS AND EXHIBIT
(a) FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES Page No.
EDS Puerto Rico Savings Plan:
Independent Auditors' Report........................... 4
Basic Financial Statements:
Statements of Net Assets Available for Benefits -
December 31, 1998 and 1997..................... 5
Statements of Changes in Net Assets Available for
Benefits - Years Ended December 31, 1998
and 1997....................................... 6
Notes to Financial Statements - December 31, 1998
and 1997 .......................................... 7
Supplemental schedules:
Line 27(a)-Schedule of Assets Held for
Investment Purposes - December 31, 1998........ 16
Line 27(d)-Schedule of Reportable Transactions -
Year Ended December 31, 1998................... 17
Supplemental schedules not listed above are omitted as the required in-
formation is not applicable or the information is presented in the financial
statements or related notes.
(b) EXHIBIT
Exhibit 23 Consent of Independent Auditors................ 18
2
<PAGE>
SIGNATURE
The Plan. Pursuant to the requirements of the Securities Exchange Act of
1934, the Trustees of the EDS Puerto Rico Savings Plan have duly caused this
annual report to be signed on its behalf by the undersigned hereunto duly
authorized.
EDS PUERTO RICO SAVINGS PLAN
------------------------------
(Name of plan)
Electronic Data Systems Corporation
Plan Administrator
Date: June 29, 1999 By: /s/ John Adams
---------------------------------
John Adams, Vice President and
Controller
3
<PAGE>
INDEPENDENT AUDITORS' REPORT
----------------------------
The Trustee
EDS Puerto Rico Savings Plan:
We have audited the accompanying statements of net assets available for benefits
of the EDS Puerto Rico Savings 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 EDS Puerto
Rico Savings Plan as of December 31, 1998 and 1997, and the changes in 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 basic
financial statements taken as a whole. The supplemental schedules of assets held
for investment purposes and reportable transactions are presented for the
purpose of additional analysis and are not a required part of the basic
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. The supplemental schedules
have been subjected to the auditing procedures applied in the audits of the
basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements taken as a
whole.
/s/ KPMG LLP
Dallas, Texas
June 4, 1999
4
<PAGE>
<TABLE>
<CAPTION>
EDS PUERTO RICO SAVINGS PLAN
Statements of Net Assets Available for Benefits
December 31, 1998 and 1997
1998 1997
---- ----
<S> <C> <C>
Assets:
Investments (note 4):
Income Fund, at contract value $ 7,696 $ 5,686
Investments in stocks, bonds and mutual funds,
at quoted market prices 697,093 555,027
Loan Fund, at unpaid principal balance
which approximates fair value 12,533 19,996
------- -------
Total Investments 717,322 580,709
Contributions receivable 1,197 2,619
Refunds payable (note 2) (27,697) (35,898)
------- -------
Net assets available for benefits $690,822 $547,430
======= =======
See accompanying notes to financial statements.
</TABLE>
5
<PAGE>
EDS PUERTO RICO SAVINGS PLAN
Statements of Changes in Net Assets Available for Benefits
Years Ended December 31, 1998 and 1997
1998 1997
---- ----
Additions to net assets attributed to:
Investment income:
Net appreciation in fair value
of investments (note 4) $ 42,149 $13,420
Interest 17,939 18,955
Dividends 23,334 14,976
------- -------
Total investment income 83,422 47,351
Contributions 81.037 55,789
------- -------
Total additions 164,459 103,140
Deductions from net assets attributed
to benefits paid and withdrawals (21,067) (14,501)
------- -------
Net increase 143,392 88,639
Net assets available for benefits at:
Beginning of year 547,430 458,791
------- -------
End of year $690,822 $547,430
======= =======
See accompanying notes to financial statements.
6
<PAGE>
EDS PUERTO RICO SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
1. Description of Plan
The EDS Puerto Rico Savings Plan (the Plan) became effective July 16, 1993,
with employees admitted to the Plan on this date. As used herein, the terms "the
Company", and "Employer" refer to EDS International Corporation, a wholly owned
subsidiary of Electronic Data Systems Corporation ("EDS"). The following
description of the Plan reflects all Plan amendments as of December 31, 1998 and
is provided for general purposes only. Participants should refer to the Plan
document, as amended, for more complete information.
a. General
The Plan is a qualified profit sharing plan with provisions pursuant to
Section 165 of the Puerto Rico Income Tax Act of 1954, as amended (ITA),
covering eligible employees of the Company. An employee becomes eligible to
participate in the Plan upon the completion of at least one hour of service with
the Employer.
The Vanguard Fiduciary Trust Company (Vanguard) is the asset custodian and
record-keeper for the Plan. Banco Santander is the trustee of the Plan. The
Vanguard Group of Investment Companies manages 9 of the 11 investment funds of
the Plan. The Plan's Investment Committee has responsibility for managing the
Income Fund and the EDS Stock Fund and for selecting the investment funds for
employee-directed investments.
The Plan is subject to the provisions of the Employee Retirement Income
Security Act of 1974 (ERISA), as amended and the U.S. Internal Revenue Code of
1986 ("Code"), as amended. The Plan was created to provide additional incentive
and retirement security for eligible employees. The Plan has nine investment
funds as of December 31, 1998:
the Income Fund, a fixed income fund;
the EDS Stock Fund, a fund consisting of EDS common stock;
the Vanguard Wellington Fund (Vanguard Wellington), a stock and bond
mutual fund;
the Vanguard U.S. Growth Portfolio (Vanguard U.S.), a growth stock
mutual fund;
the Vanguard International Growth Portfolio (Vanguard International),
a growth stock mutual fund investing in foreign companies;
the Vanguard Growth and Income Portfolio (Vanguard Growth and Income),
a growth and income stock mutual fund;
the Vanguard Money Market Reserves-Prime Portfolio (Vanguard Money
Market), a short-term investment fixed income fund;
the Vanguard Bond Index Fund, an intermediate term bond fund;
and the Vanguard Federal Money Market Fund (Vanguard Federal Money
Market), a long-term government-backed instrument fixed income fund.
All of the administrative expenses of the Plan are paid by the Company with
the exception of loan application fees. All investment expenses are paid from
the investment funds.
b. Contributions
Contributions to the Plan are made on a pre-tax basis. Participants may
elect to defer between one percent and ten percent of their total compensation
subject to: (1) a maximum annual contribution of $10,000, (2) a maximum annual
eligible compensation of $160,000 per participant, and (3) limitations imposed
to ensure a fair mix of participation among employees. A participant may elect,
up to four times annually, to change his/her designated percentage of
compensation deferred.
7
<PAGE>
EDS PUERTO RICO SAVINGS PLAN
Notes to Financial Statements
On July 1, 1998, the Company began to match 25% of employee contributions
up to 6% of an employee's salary. The matching contributions are made in EDS
stock which is restricted from trade for two years, based on the trade date.
c. Withdrawals
Withdrawals are allowed under certain circumstances. Hardship withdrawals
are available once a participant has exhausted all other available financial
resources, including Plan loans. Upon the approval of the Plan Administrator, a
participant may withdraw an amount equal to but not in excess of the expense of
the hardship. In order to obtain such approval from the Plan Administrator, a
participant must demonstrate immediate and heavy financial need and meet other
plan requirements for withdrawal. In addition, participants age 59 1/2 or above
may request an in-service withdrawal without being subject to an additional 10%
tax penalty. The amount of a participant's withdrawals may not be repaid to the
Plan.
d. Participant's Individual Account
The Participant's Individual Account is credited with the salary deferral,
rollover and matching contributions and the amounts of participant earnings
dictated by the number of units held in each investment fund. The benefit to
which a participant is entitled is limited to the amount of the participant's
individual account.
The participant determines the percentage of the investment contributed to
one or more of the investment funds. The percentages may be in any whole
percentage increment.
e. Vesting
Participants are always 100% vested in their salary deferral and rollover
contributions and in the earnings received thereon. Matching contributions vest
40% at 2 years of credited service, and in 20% increments each year of service
thereafter.
f. Payment of Benefits
On termination of service, age 59 1/2, death, or retirement, a participant
may elect to receive a distribution for all or part of the value of his/her
account, EDS common stock (for any amount so invested), or in the form of joint
and survivor 50% non-transferable annuity contract purchased on his/her behalf
from an insurance company. With spousal consent, a participant may elect a lump
sum distribution or periodic payments in monthly, quarterly, or semiannual
installments. Distributions, except annuity payments, may be rolled into another
qualified plan or to an individual retirement account.
g. Loans
Upon written application of a participant, the Plan Administrator may
direct the trustee to make a loan to the participant. The amount of any such
loan is limited to fifty percent (50%) of the amount of accumulated
contributions to which the participant would be entitled if employment was
terminated as of the date the loan is made. No loan may be granted for less than
$500. The maximum amount of loans available to a participant is $50,000 reduced
by the highest outstanding loan balances from the Plan during the preceding year
minus the outstanding loan balances on the date a loan is made. Plan loans and
interest must be repaid within five years or upon separation from employment,
whichever is earlier. If the outstanding loan is not repaid in full prior to the
end of the quarter during which the participant separates, the amount
outstanding will be reported to the Puerto Rico Department of the Treasury as
income for that calendar year. At December 31, 1998 and 1997, the interest rate
on new loans was seven and three-quarters percent (7.75%) and eight and
one-quarter percent (8.25%), respectively.
8
<PAGE>
EDS PUERTO RICO SAVINGS PLAN
Notes to Financial Statements
2. Summary of Significant Accounting Policies
a. Investments
The Plan's investments are stated at fair value based on quoted market
prices except for its investment contracts with insurance companies which are
stated at contract value. Investments in the Income Fund are valued at contract
value which approximates fair value and represents contributions made plus
interest at the contract rate. Participant loans are presented in the
accompanying financial statements at unpaid principal balance which approximates
fair value. Purchases and sales of investments are recorded on a trade date
basis. Dividend income is recorded on the ex-dividend date.
b. Benefits
Benefits are recorded when paid.
c. Contribution Refunds
Refunds of excess participant contributions to be made subsequent to the
Plan's year end under section 415 of the Code are recorded on an accrual basis.
At December 31, 1998, refunds due to participants were allocated as follows:
$234 - Income Fund; $1,990 - EDS Stock Fund; $4,793 - Vanguard Wellington;
$5,204 - Vanguard U.S.; $589 - Vanguard International; $4,868 - Vanguard Growth
and Income; and $10,019 - Vanguard Money Market. At December 31, 1997, refunds
due to participants were allocated as follows: $310 - Income Fund; $1,242 - EDS
Stock Fund; $3,874 - Vanguard Wellington; $4,223 - Vanguard U.S.; $1,648 -
Vanguard International; $2,464 - Vanguard Growth and Income; $198 - Vanguard
Explorer; $21,841 - Vanguard Money Market; and $98 - Vanguard Bond Index Fund.
d. Use of Estimates
The preparation of the financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of additions and deductions during the
reporting period. Because of the use of estimates inherent in the financial
reporting process, actual results could differ from those estimates.
3. Plan Termination
While it has not expressed any intention to do so, the Company has the
right to terminate the Plan at any time by majority vote of its Board of
Directors subject to the provisions of ERISA.
9
<PAGE>
EDS PUERTO RICO SAVINGS PLAN
Notes to Financial Statements
4. Investments
The trustee of the Plan holds the investments of the Plan in trust on
behalf of the participants and beneficiaries. Consistent with the fiduciary
standards of ERISA, safeguards are adhered to in protecting the interests of
Plan participants and their beneficiaries.
The Income Fund may include investments in structured investment contracts.
Under these arrangements, the Plan enters into a wrap agreement with a financial
institution at a stated yield on fixed income securities purchased by the Plan.
The wrap agreements are stated at fair value based on fluctuations in the fair
value of the underlying fixed income securities.
The following table presents the fair value/contract value of the Plan's
investments at December 31, 1998 and 1997. Investments that represent five
percent (5.00%) or more of the Plan's net assets at December 31, 1998 are
separately identified.
<TABLE>
<CAPTION>
1998 1997
----------------------------- ----------------------------
Number Fair value/ Number Fair value
of shares contract of shares contract
or units value or units value
------------ ------------- ----------- ------------
<S> <C> <C> <C> <C>
Income Fund, at contract value 7,696 $ 7,696 5,686 $ 5,686
EDS Stock Fund (cost of $58,417
in 1998 and $25,646 in 1997)* 3,344 71,494 581 25,544
Vanguard Wellington (cost of $108,190
in 1998 and $74,986 in 1997)* 3,975 116,665 2,946 86,761
Vanguard U.S. (cost of $76,030 in
1998 and $43,422 in 1997)* 2,688 100,769 1,828 52,468
Vanguard International (cost of $13,873
in 1998 and $15,064 in 1997) 874 16,411 974 15,971
Vanguard Growth and Income (cost of
$69,888 in 1998 and $39,166
in 1997)* 2,748 84,522 1,719 45,029
Vanguard Money Market, at cost which
approximates fair value* 304,307 304,307 325,804 325,804
Vanguard Bond Index Fund (cost of
$2,543 in 1998 and $2,275 in 1997) 258 2,650 232 2,343
Vanguard Federal Money Market, at
cost which approximates fair value 275 275 -- --
Vanguard Explorer (cost of $1,286
in 1997) -- -- 20 1,107
Loan Fund (5 and 4 loans in 1998 and
1997, respectively, loans outstanding
from $897 to $4,226 and $595 to
$5,534 in 1998 and 1997, respectively,
with interest rates from
7.75% to 8.5% in 1998 and 1997) -- 12,533 -- 19,996
------- -------
$717,322 $580,709
======= =======
* Represents 5% or more of Plan assets as of December 31, 1998.
</TABLE>
10
<PAGE>
EDS PUERTO RICO SAVINGS PLAN
Notes to Financial Statements
To hedge against adverse foreign currency movements, the Vanguard
International fund may enter into contracts for the purchase or sale of a
specific foreign currency at a fixed price at a future date. The forward foreign
currency rate of the underlying currency and any gains and losses are recorded
for financial statement purposes as unrealized until the contract settlement
date, at which point they are realized. To hedge against anticipated future
changes in interest rates or security prices, the Vanguard Growth and Income
fund may utilize futures contracts to a limited extent. This fund receives from
or pays to brokers amounts equal to the daily fluctuations in the values of the
contracts. These receipts and payments are recorded as unrealized gains and
losses until the contract settlement dates, at which point they are realized.
The underlying risk to participants is proportional to each participant's number
of shares relative to the total number of shares issued by each mutual fund.
5. Related Party Transactions
As stated in note 1, the EDS Stock Fund consists of EDS common stock.
Additionally, the Vanguard Investment Fund consists of investments in various
Vanguard managed mutual funds.
6. Income Tax Status
The Puerto Rico Department of the Treasury has determined and informed the
Company by a letter dated October 6, 1993 that the Plan and related trust are
designed in accordance with applicable sections of the ITA. The Plan
Administrator believes that the Plan is designed and is currently being operated
in compliance with the applicable requirements of the Code.
11
<PAGE>
EDS PUERTO RICO SAVINGS PLAN
Notes to Financial Statements
7. Allocation of Changes in Net Assets Available for Benefits to Investment
Programs
The following table presents the allocation of changes in net assets
available for benefits to investment programs for the year ended December 31,
1998:
<TABLE>
<CAPTION>
Vanguard
Income EDS Vanguard Vanguard Growth and
Fund Stock Fund Wellington Vanguard U.S. International Income Fund
--------- ----------- ---------- ------------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to investment
income:
Net appreciation
(depreciation)
in fair value of
investments -- 13,345 (2,070) 18,239 2,565 10,069
Interest 403 -- -- -- -- --
Dividends -- 549 12,381 6,160 323 3,761
----- ------ ------- ------ ------ ------
Total 403 13,894 10,311 24,399 2,888 13,830
Employee contributions 1,604 4,848 657 18,174 3,095 9,642
Employer contributions -- 11,049 -- -- -- --
----- ------ ------- ------ ------ ------
Total additions 2,007 29,791 10,968 42,573 5,983 23,472
Deductions from net assets
attributed to withdrawals -- (1,956) (1,515) -- -- (1,904)
Interfund transfers -- 18,324 19,320 4,351 (4,639) 15,120
----- ------ ------- ------ ------ ------
Net increase (decrease) 2,007 46,159 28,773 46,924 1,344 36,688
Net assets available
for benefits at:
Beginning of year 5,455 24,543 83,099 48,642 14,478 42,965
----- ------ ------- ------ ------ ------
End of year 7,462 70,702 111,872 95,566 15,822 79,653
===== ====== ======= ====== ====== ======
</TABLE>
12
<PAGE>
EDS PUERTO RICO SAVINGS PLAN
Notes to Financial Statements
7. Allocation of Changes in Net Assets Available for Benefits to Investment
Programs (continued)
The following table presents the allocation of changes in net assets
available for benefits to investment programs for the year ended December 31,
1998:
<TABLE>
<CAPTION>
Vanguard Vanguard Vanguard
Explorer Federal Vanguard Bond Index
Fund Money Market Money Market Loan Fund Fund Total
-------- ------------ ------------ ---------- ---------- -------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to investment income:
Net appreciation (depreciation) (42) -- -- -- 43 42,149
in fair value of investments
Interest -- -- 16,850 686 -- 17,939
Dividends -- -- -- -- 160 23,334
--- --- ------ ------ ----- -------
Total (42) -- 16,850 686 203 83,422
Employee contributions 55 275 31,444 -- 194 69,988
Employer contributions -- -- -- -- -- 11,049
--- --- ------ ------ ----- -------
Total additions 13 275 48,294 686 397 164,459
Deductions from net assets
attributed to withdrawals -- -- (7,480) (8,212) -- (21,067)
Interfund transfers (929) -- (51,609) 62 -- --
--- --- ------ ------ ----- -------
Net increase (decrease) (916) 275 (10,795) (7,464) 397 143,392
Net assets available for benefits at:
Beginning of year 916 -- 305,082 19,997 2,253 547,430
--- --- ------ ------ ----- -------
End of year -- 275 294,287 12,533 2,650 690,822
==== ==== ======= ====== ===== =======
</TABLE>
13
<PAGE>
EDS PUERTO RICO SAVINGS PLAN
Notes to Financial Statements
7. Allocation of Changes in Net Assets Available for Benefits to Investment
Programs (continued)
The following table presents the allocation of changes in net assets
available for benefits to investment programs for the year ended December 31,
1997:
<TABLE>
<CAPTION>
Vanguard
Income EDS Vanguard Vanguard Growth and
Fund Stock Fund Wellington Vanguard U.S. International Income
------ ---------- ---------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to investment
income:
Net appreciation
(depreciation) in fair
value of investments -- 479 4,786 5,276 (167) 3,166
Interest 297 -- -- -- -- --
Dividends -- 323 6,924 2,036 680 4,762
----- ------ ------ ------ ------ ------
Total 297 802 11,710 7,312 513 7,928
Employee contributions 716 3,721 11,332 10,465 988 11,256
----- ------ ------ ------ ------ ------
Total additions 1,013 4,523 23,042 17,777 1,501 19,184
Deductions from net assets
attributed to withdrawals -- (22) -- -- (1,260) --
Interfund transfers (62) (1,830) 22,599 12,351 1,094 9,567
----- ------ ------ ------ ------ ------
Net increase (decrease) 951 2,671 45,641 30,128 1,335 28,751
Net assets available for
benefits at:
Beginning of year 4,504 21,872 37,458 18,514 13,143 14,214
----- ------ ------ ------ ------ ------
End of year 5,455 24,543 83,099 48,642 14,478 42,965
===== ====== ====== ====== ====== ======
</TABLE>
14
<PAGE>
EDS PUERTO RICO SAVINGS PLAN
Notes to Financial Statements
7. Allocation of Changes in Net Assets Available for Benefits to Investment
Programs (continued)
The following table presents the allocation of changes in net assets
available for benefits to investment programs for the year ended December 31,
1997:
<TABLE>
<CAPTION>
Vanguard Vanguard Vanguard
Explorer Money Loan Bond Index
Fund Market Fund Fund Total
--------- -------- ---- ---------- -----
<S> <C> <C> <C> <C> <C>
Additions to net assets
attributed to investment income:
Net appreciation (depreciation)
in fair value
of investments (177) -- -- 57 13,420
Interest -- 18,289 369 -- 18,955
Dividends 110 -- -- 141 14,976
--- ------- ------ ----- -------
Total (67) 18,289 369 198 47,351
Employee contributions -- 17,171 -- 140 55,789
--- ------- ------ ----- -------
Total additions (67) 35,460 369 338 103,140
Deductions from net assets
attributed to withdrawals -- (12,438) (781) -- (14,501)
Interfund transfers 935 (56,627) 12,089 (116) --
--- ------- ------ ----- -------
Net increase (decrease) 868 (33,605) 11,677 222 88,639
Net assets available for benefits at:
Beginning of year 48 338,687 8,320 2,031 458,791
--- ------- ------ ----- -------
End of year 916 305,082 19,997 2,253 547,430
=== ======= ====== ===== =======
</TABLE>
15
<PAGE>
EDS PUERTO RICO SAVINGS PLAN
Line 27 (a) - Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
Description of Investment
-------------------------
Identity of Party Rates of Number of Current
Interest Shares or Units Cost Value
- ---------------------------------------- -------- --------------- ---- -------
<S> <C> <C> <C> <C>
Income Fund -- 7,696 $ 7,696 $ 7,696
EDS Stock Fund* -- 3,344 58,417 71,494
Vanguard Wellington* -- 3,975 108,190 116,665
Vanguard U.S.* -- 2,688 76,030 100,769
Vanguard International* -- 874 13,873 16,411
Vanguard Growth and Income* -- 2,748 69,888 84,522
Vanguard Money Market * -- 304,307 304,307 304,307
Vanguard Bond Index Fund* -- 258 2,543 2,650
Vanguard Federal Money Market* -- 275 275 275
Loan Fund* 7.75% to 8.5% -- 12,533 12,533
------- -------
Total Assets Held for Investment Purposes $653,752 $717,322
======= =======
* Parties in interest
See accompanying independent auditors' report.
</TABLE>
16
<PAGE>
EDS PUERTO RICO SAVINGS PLAN
Line 27 (d) - Schedule of Reportable Transactions
For The Year Ended December 31, 1998
<TABLE>
<CAPTION>
Current
Value of
Asset on Net
Identity of Number of Purchase Selling Cost of Transaction Gain or
Party Involved Description of Asset Transactions Price Price Asset Date (Loss)
- -------------- -------------------- ------------ -------- ------- ------- ----------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
EDS* EDS Stock Fund 34 36,546 -- 36,546 36,546 --
EDS* EDS Stock Fund 6 -- 3,941 3,775 3,941 166
Vanguard * Vanguard Growth and
Income 34 36,011 -- 36,011 36,011 --
Vanguard * Vanguard Growth and
Income 4 -- 6,587 5,288 6,587 1,299
Vanguard * Vanguard Money Market 51 67,206 -- 67,206 67,206 --
Vanguard * Vanguard Money Market 12 -- 88,703 88,703 88,703 --
Vanguard * Vanguard U.S. 35 45,433 -- 45,433 45,433 --
Vanguard * Vanguard U.S. 5 -- 15,371 12,825 15,371 2,546
Vanguard * Vanguard Wellington 30 39,851 -- 39,851 39,851 --
Vanguard * Vanguard Wellington 4 -- 7,876 6,647 7,876 1,229
*Parties in interest
See accompanying independent auditors' report
</TABLE>
17
Exhibit 23
----------
CONSENT OF INDEPENDENT AUDITORS
The Board of Directors
Electronic Data Systems Corporation:
We consent to the incorporation by reference in the registration statement (No.
33-54833) on Form S-8 of Electronic Data Systems Corporation of our report dated
June 4, 1999 related to the statements of net assets available for plan benefits
of the EDS Puerto Rico Savings Plan as of December 31, 1998 and 1997, the
related statements of changes in net assets available for plan benefits for the
years then ended and the related supplemental schedules as of and for the year
ended December 31, 1998, which report appears in the December 31, 1998 annual
report on Form 11-K of the EDS Puerto Rico Savings Plan.
/s/ KPMG LLP
June 29, 1999
Dallas, Texas
18
