SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 11-K
Annual Report Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
(Mark One)
[X] Annual report pursuant to Section 15(d) of the Securities Exchange
Act of 1934
For the fiscal year ended July 31, 1998
[ ] Transitional report pursuant to Section 15(d) of the Securities
Exchange Act of 1934
For the transition period from to
Commission file number 001-13683
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
Delco Remy America
Salaried 401(k) Savings Plan (1)
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
Delco Remy International, Inc.
2902 Enterprise Drive
Anderson, Indiana 46013
(1) Effective January 1, 1999, the "Delco Remy America Salaried 401(k) Savings
Plan" will be amended, restated and renamed the "Delco Remy International 401(k)
Retirement and Savings Plan," and sponsorship of the Plan will transfer from
Delco Remy America, Inc. to Delco Remy International, Inc. This initial Form
11-K filing is being filed concurrently with the Form S-8 Registration Statement
for the "Delco Remy International 401(k) Retirement and Savings Plan."
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
REQUIRED INFORMATION
<S> <C>
A. Financial Statements and Schedules:
Report of Independent Auditors
Statement of Net Assets Available for
Benefits as of July 31, 1998 and 1997
Statement of Changes in Net Assets Available for
Benefits for the Years Ended July 31, 1998 and 1997
Notes to Financial Statements
Schedule of Assets
Held for Investment Purposes as of July 31, 1998
Schedule of Reportable Transactions
B. Exhibits
Consent of Independent Auditors
</TABLE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustee (or other person who administers the employee benefit plan) has duly
caused this annual report to be signed on its behalf by the undersigned hereto
duly authorized.
Delco Remy America
Salaried 401(k) Savings Plan (See footnote 1, above.)
- -----------------------------------
(Name of Plan)
Date: December 23, 1998
/s/ Roderick English
Roderick English,
Senior Vice President Human Resources and Communications
<PAGE>
<PAGE>
Financial Statements and Schedules
Delco Remy America Salaried 401(k) Savings Plan
Years ended July 31, 1998 and 1997
with Report of Independent Auditors
PAGE
<PAGE>
Delco Remy America Salaried 401(k)
Savings Plan
Financial Statements and Schedules
Years ended July 31, 1998 and 1997
CONTENTS
<TABLE>
<CAPTION>
<S> <C>
Report of Independent Auditors 1
Financial Statements
Statements of Net Assets Available for Benefits 2
Statements of Changes in Net Assets Available for Benefits 4
Notes to Financial Statements 6
Schedules
Schedule of Assets Held for Investment Purposes 12
Schedule of Reportable Transactions 13
</TABLE>
PAGE
<PAGE>
Report of Independent Auditors
Plan Administrator
Delco Remy America Salaried 401(k) Savings Plan
We have audited the accompanying statements of net assets available for benefits
of the Delco Remy America Salaried 401(k) Savings Plan (the Plan) as of July 31,
1998 and 1997, and the related statement 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 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 purposes 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. These supplemental schedules are the responsibility of the Plan's
management. The fund information in the statement of net assets available for
benefits and the statement of changes in assets available for benefits is
presented for purposes of additional analysis rather than to present the assets
available for benefits and changes in assets available for benefits for each
fund. The supplemental schedules and fund information have been subjected to
the auditing procedures applied in our audits of the financial statements and,
in our opinion, are fairly stated in all material respects in relation to the
financial statements taken as a whole.
/s/ ERNST & YOUNG LLP
October 2, 1998
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
Delco Remy America Salaried 401(k) Savings Plan
Statement of Net Assets Available for Benefits, with Fund Information
July 31, 1998
Fund Information
<S> <C> <C> <C> <C> <C> <C> <C> <C>
VANGUARD VANGUARD FIDELITY VANGUARD FIDELITY FIDELITY TEMPLETON LOAN FUND
MONEY FIXED BALANCED INDEX 500 EMERGING CONTRA FOREIGN
MARKET INCOME FUND TRUST GROWTH FUND FUND
PRIME SECURITIES FUND
PORTFOLIO SHORT-
RESERVES, TERM
INC. CORPORATE
PORTFOLIO
---------- ----------- ---------- ---------- ---------- --------- ---------- ----------
ASSETS:
Investments, at fair value: $1,242,897 $ 188,747 $1,134,950 $2,959,157 $2,207,520 $ 434,092 $ 165,768 $ 343,315
Receivables:
Participant contributions - - - - - - - -
Net assets available for benefits $1,242,897 $ 188,747 $1,134,950 $2,959,157 $2,207,520 $ 434,092 $ 165,768 $ 343,315
========== =========== ========== ========== ========== ========= ========== ==========
<S> <C> <C>
TEMPORARY TOTAL
FUND
---------- ----------
ASSETS:
Investments, at fair value: $ - $8,676,446
Receivables:
Participant contributions 19,285 19,285
Net assets available for benefits $ 19,285 $8,695,731
========== ==========
<FN>
See accompanying notes.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
Delco Remy America Salaried 401(k) Savings Plan
Statement of Net Assets Available for Benefits, with Fund Information
July 31, 1997
Fund Information
<S> <C> <C> <C> <C> <C> <C>
VANGUARD FIDELITY VANGUARD FIDELITY FIDELITY
VANGUARD FIXED BALANCED INDEX 500 EMERGING CONTRA FUND
MONEY INCOME FUND TRUST GROWTH
MARKET SECURITIES FUND
PRIME SHORT-TERM
PORTFOLIO CORPORATE
RESERVES, INC. PORTFOLIO
--------------- ----------- --------- ---------- ---------- ------------
ASSETS:
Investments, at fair value: $ 1,066,948 $ 144,390 $ 862,378 $1,727,353 $1,380,904 $ 193,721
Receivables:
Participant contributions 11,819 1,874 8,326 16,881 15,749 1,862
Employer matching contributions 2,941 344 1,477 3,107 2,971 328
Interest on investments 25 172 - - - -
--------------- ----------- --------- ---------- ---------- ------------
14,785 2,390 9,803 19,988 18,720 2,190
LIABILITIES:
Refund of participant contributions payable - - - - - -
--------------- ----------- --------- ---------- ---------- ------------
- - - - - -
Net assets available for benefits $ 1,081,733 $ 146,780 $ 872,181 $1,747,341 $1,399,624 $ 195,911
=============== =========== ========= ========== ========== ============
<S> <C> <C> <C> <C>
TEMPLETON LOAN FUND TEMPORARY TOTAL
FOREIGN FUND
FUND
---------- ---------- ---------- ----------
ASSETS:
Investments, at fair value: $ 176,737 $ 184,804 $ - $5,737,235
Receivables:
Participant contributions 1,565 - 29,217 87,293
Employer matching contributions 272 - - 11,440
Interest on investments - - - 197
---------- ---------- ---------- ----------
1,837 - 29,217 98,930
LIABILITIES:
Refund of participant contributions payable - - 13,568 13,568
---------- ---------- ---------- ----------
- - 13,568 13,568
Net assets available for benefits $ 178,574 $ 184,804 $ 15,649 $5,822,597
========== ========== ========== ==========
<FN>
See accompanying notes.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
Delco Remy America Salaried 401(k) Savings Plan
Statement of Changes in Net assets Available for Benefits, with Fund Information
Year ended July 31, 1998
Fund Information
<S> <C> <C> <C> <C> <C> <C>
VANGUARD VANGUARD FIDELITY VANGUARD FIDELITY FIDELITY
MONEY FIXED BALANCED INDEX 500 EMERGING CONTRA FUND
MARKET INCOME FUND TRUST GROWTH FUND
PRIME SECURITIES
PORTFOLIO SHORT-TERM
RESERVES, INC. CORPORATE
PORTFOLIO
--------------- ------------ ---------- ---------- ------------ ------------
Additions:
Employee voluntary contributions $ 216,650 $ 38,453 $ 194,154 $ 453,995 $ 385,359 $ 81,132
Company contributions 99,602 16,228 69,774 158,330 146,922 35,607
Rollover contributions 24,041 9,729 2,017 59,431 20,910 11,694
Interest and dividends 60,427 9,858 112,797 47,489 297,919 58
---------------- ------------ ----------- ---------- ------------- ------------
Total additions 400,720 74,268 378,742 719,245 851,110 128,491
Deductions:
Benefits paid to participants 169,047 3,140 26,647 48,737 91,290 1,573
Administrative expenses 2,729 396 2,419 5,588 4,042 -
---------------- ------------ ----------- ---------- ------------- ------------
Total deductions 171,776 3,536 29,066 54,325 95,332 1,573
---------------- ------------ ----------- ---------- ------------- ------------
228,944 70,732 349,676 664,920 755,778 126,918
Interfund transfers (67,780) (28,717) (108,538) 171,818 (48,621) 51,730
Net appreciation (depreciation) in
fair value of investments - (48) 21,631 375,078 100,739 59,533
---------------- ------------ ----------- ---------- ------------- ------------
Net increase 161,164 41,967 262,769 1,211,816 807,896 238,181
Net assets available for benefits:
Beginning of year 1,081,733 146,780 872,181 1,747,341 1,399,624 195,911
End of year $ 1,242,897 $ 188,747 $1,134,950 $2,959,157 $ 2,207,520 $ 434,092
================ ============ =========== ========== ============= ============
<S> <C> <C> <C> <C>
TEMPLETON LOAN FUND TEMPORARY TOTAL
FOREIGN FUND
FUND
---------- ---------- ---------- ----------
Additions:
Employee voluntary contributions $ 60,136 $ - $ 19,285 $1,449,164
Company contributions 23,451 - - 549,914
Rollover contributions 9,295 - - 137,117
Interest and dividends 16,266 21,379 - 566,193
----------- ---------- ----------- ----------
Total additions 109,148 21,379 19,285 2,702,388
Deductions:
Benefits paid to participants 2,929 2,278 - 345,641
Administrative expenses - - - 15,174
----------- ---------- ----------- ----------
Total deductions 2,929 2,278 - 360,815
----------- ---------- ----------- ----------
106,219 19,101 19,285 2,341,573
Interfund transfers (93,653) 139,410 (15,649) -
Net appreciation (depreciation) in
fair value of investments (25,372) - - 531,561
----------- ---------- ----------- ----------
Net increase (12,806) 158,511 3,636 2,873,134
Net assets available for benefits:
Beginning of year 178,574 184,804 15,649 5,822,597
----------- ----------
End of year $ 165,768 $ 343,315 $ 19,285 $8,695,731
=========== ========== =========== ==========
<FN>
See accompanying notes.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
Delco Remy America Salaried 401(k) Savings Plan
Statement of Changes in Net assets Available for Benefits, with Fund Information
Year ended July 31, 1997
Fund Information
<S> <C> <C> <C> <C> <C> <C>
VANGUARD VANGUARD FIDELITY VANGUARD FIDELITY FIDELITY
MONEY FIXED BALANCED INDEX 500 TRUST EMERGING CONTRA
MARKET PRIME INCOME FUND GROWTH FUND
PORTFOLIO SECURITIES FUND
RESERVES, INC. SHORT-TERM
CORPORATE
PORTFOLIO
---------------- ------------ ---------- ---------------- ----------- ---------
Additions:
Employee voluntary contributions $ 307,393 $ 46,507 $ 191,518 $ 361,319 $ 384,269 $ 37,136
Company contributions 66,120 6,041 28,736 56,888 62,116 4,520
Rollover contributions 36,218 91,172 46,419 126,807 99,544 77,793
Interest and dividends 50,860 8,444 28,314 20,531 297 -
---------------- ------------ ---------- ---------------- ----------- ---------
Total additions 460,591 152,164 294,987 565,545 546,226 119,449
Deductions:
Benefits paid to participants 36,092 27,681 51,302 70,273 48,673 783
Administrative expenses 2,169 301 1,412 2,364 2,308 -
Participant contribution refunds - - - - - -
---------------- ------------ ---------- ---------------- ----------- ---------
Total deductions 38,261 27,982 52,714 72,637 50,981 783
---------------- ------------ ---------- ---------------- ----------- ---------
422,330 124,182 242,273 492,908 495,245 118,666
Interfund transfers (220,880) (80,346) (5,123) 227,208 (191,717) 46,794
Net appreciation (depreciation) in
fair value of investments - 2,190 164,377 454,076 329,661 30,451
---------------- ------------ ---------- ---------------- ----------- ---------
Net increase 201,450 46,026 401,527 1,174,192 633,189 195,911
Net assets available for benefits:
Beginning of year 880,283 100,754 470,654 573,149 766,435 -
End of year $ 1,081,733 $ 146,780 $ 872,181 $ 1,747,341 $1,399,624 $ 195,911
================ ============ ========== ================ =========== =========
<S> <C> <C> <C> <C>
TEMPLETON LOAN FUND TEMPORARY TOTAL
FOREIGN FUND
FUND
---------- ---------- ----------- ----------
Additions:
Employee voluntary contributions $ 20,791 $ - $ 29,217 $1,378,150
Company contributions 2,905 - - 227,326
Rollover contributions 9,878 - - 487,831
Interest and dividends 313 8,271 - 117,030
---------- ---------- ----------- ----------
Total additions 33,887 8,271 29,217 2,210,337
Deductions:
Benefits paid to participants 581 - - 235,385
Administrative expenses - - - 8,554
Participant contribution refunds - 13,568 13,568
---------- ---------- ----------- ----------
Total deductions 581 - 13,568 257,507
---------- ---------- ----------- ----------
33,306 8,271 15,649 1,952,830
Interfund transfers 130,090 130,432 (36,458) -
Net appreciation (depreciation) in
fair value of investments 15,178 - - 995,933
---------- ---------- ----------- ----------
Net increase 178,574 138,703 (20,809) 2,948,763
Net assets available for benefits:
Beginning of year - 46,101 36,458 2,873,834
----------- ----------
End of year $ 178,574 $ 184,804 $ 15,649 $5,822,597
========== ========== =========== ==========
<FN>
See accompanying notes.
</TABLE>
<PAGE>
<PAGE>
Delco Remy America Salaried 401(k) Savings Plan
Notes to Financial Statements
July 31, 1998
1. Significant Accounting Policies
Investments
Investments are maintained at Keycorp Investment Management and Trust Services
("Trustee"). Investments in mutual funds are valued at the quoted market price
as of the most recent valuation date at the end of the year. Dividends on
mutual funds are recorded as investment income on the date received.
Investment options, which invest in mutual funds as described below, are
available to participants as follows:
Vanguard Money Prime Portfolio Reserves, Inc.- This fund invests in
--------------------------------------------------
Treasury Bills, commercial paper, certificates of deposit and other short-term
securities with an average maturity of less than four months.
Vanguard Fixed Income SecuritiesShort-termCorporate Portfolio- This fund
----------------------------------------------------------------
invests in high quality, short-term bonds with an average maturity between one
and three years.
FidelityBalanced Fund - This fund invests in common stocks and corporate,
----------------------
government and agency bonds.
Vanguard Index500Trust - This fund invests in common stocks of large
-----------------------
companies.
Fidelity Emerging Growth Fund - This fund invests primarily in stocks of
--------------------------------
developing companies that have demonstrated or are expected to achieve rapid
growth in earnings and/or revenues.
<PAGE>
<PAGE>
Delco Remy America Salaried 401(k) Savings Plan
Notes to Financial Statements
1. Significant Accounting Policies (continued)
Fidelity Contra Fund- This fund invests primarily in stocks of smaller
----------------------
companies that are undervalued.
Templeton Foreign Fund - This fund invests primarily in stocks of
------------------------
international companies consisting of bonds and other long term debt
instruments.
The Temporary Fund serves an administrative function that temporarily holds
funds received into the Plan but not yet specifically allocated into the
appropriate investment fund due to timing. Interest earned in this fund is
allocated back to the other funds.
Administrative Expenses
Cash management fees are paid by the Plan. All other administrative expenses
are paid by Delco Remy America, Inc. ( "Company").
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
2. Description of the Plan
The Plan is a defined contribution plan which was established effective August
1, 1994 to provide retirement and other benefits to participants. The Plan
covers substantially all salaried employees of the Company, who have completed
90 days of employment with the Company (six months prior to January 1, 1998).
Salaried employees who transferred from General Motors Corporation ("GM") with
more than six months of continuous employment with GM are eligible for
participation in the Plan on the date of transfer (or active employment) with
the Company. The Plan is subject to the provisions of ERISA.
Participants may make voluntary pre-tax and after-tax contributions to their
account through periodic payroll deductions at rates from 1% to 15% of their
base salary. In addition, participants may elect to contribute 100% of their
share of the Company profit sharing distribution. The sum of the annual pre-tax
contributions and profit sharing contributions per participant for the year
cannot exceed the maximum contribution limitations established annually by the
Internal Revenue Service.
<PAGE>
<PAGE>
Delco Remy America Salaried 401(k) Savings Plan
Notes to Financial Statements
2. Description of the Plan (continued)
The Company makes matching contributions of 50% of the sum of the pre-tax
contributions and after-tax contributions made by each participant, not to
exceed 6% of the base salary of the participant. The Board of Directors of the
Company determines the amount of nonelective contributions, if any, that the
Company will contribute each year. In addition, the Company makes monthly
Retiree Medical Contributions equal to 2% of the base salary of the
participants.
Participants are vested at all times in their pre-tax, after-tax, rollover, and
nonelective contributions. Participants are vested in Company matching
contributions and Retiree Medical Contributions after completing five years of
service with the Company, retirement, death, or age 65. Participants may
designate that their contributions be deposited in any of seven investment
options designated by the Plan administrator.
Participants are entitled to benefits beginning at normal retirement, early
retirement or death. Participants may choose one lump sum payment or a series
of monthly installments (if the participant's account balance exceeds $3,500) in
a dollar amount elected by the participant. Upon termination of employment, the
participant's vested account balance becomes payable. If the participant's
vested account balance exceeds $3,500, such distribution cannot be made without
the participant's consent. The balance of forfeited nonvested accounts was not
material as of July 31, 1998 and 1997, and will be used to reduce future
employer contributions.
Participants may make a complete or partial hardship withdrawal of their pre-tax
contributions, supplemental and rollover account balance, excluding earnings
allocated to such accounts. The withdrawal must be necessary in light of
immediate and heavy financial needs of the participant as defined by IRS
regulations. The withdrawal may not exceed the immediate heavy financial need
of the participant, and the participant must have obtained all other available
distributions. During the twelve months following a hardship withdrawal,
pre-tax contributions, after-tax contributions, profit sharing contributions and
employee contributions under any other plan maintained by the Company are
suspended. In addition, participants may withdraw all or part of their
after-tax contributions. The minimum withdrawal of after-tax contributions is
$500.
Participants may borrow from their accounts a minimum loan of $1,000 up to a
maximum of the lesser of $50,000 or one-half of the vested account balance.
PAGE
<PAGE>
Delco Remy America Salaried 401(k) Savings Plan
Notes to Financial Statements
2. Description of the Plan (continued)
Loans bear interest at a rate of 1% above the Trustee's prime lending rate.
Payments on the outstanding loans must be made at least quarterly and the
repayment period can range from six months to five years, unless the loan is for
the purchase or construction of the participant's principle residence, in which
case the repayment period is ten years. In the event that a loan is not repaid
within the appropriate repayment period, the participant will be deemed to have
received a distribution from his account equal to the remaining principal
balance and accrued interest outstanding.
The Company has the right to amend or terminate the Plan at any time. The
Company has the right to suspend contributions to the Plan at any time, whether
permanently or temporarily for any length of time.
More detailed information concerning the Plan may be found by consulting the
Summary Plan Description which is available from the Plan Administrator.
3. Investments
All investment information disclosed in the accompanying financial statements
and schedules in total and by fund, including investments held at July 31, 1998
and 1997, interest and dividends and net appreciation (depreciation) in fair
value of investments for the years ended July 31, 1998 and 1997, were obtained
or derived from information supplied to the plan administrator and certified as
complete and accurate by Keycorp Investment Management and Trust Services, the
trustee.
During the years ended July 31, 1998 and 1997 the Plan's investments in the
various funds (including investments purchased, sold, as well as held during the
year) appreciated (depreciated) in fair value as presented in the following
table. The fair value of individual investments that represent 5% or more of
plan assets are separately identified.
PAGE
<PAGE>
Delco Remy America Salaried 401(k) Savings Plan
Notes to Financial Statements
3. Investments (continued)
<TABLE>
<CAPTION>
<S> <C> <C>
Net
Appreciation
(Depreciation)
in Fair Value Fair Value at
During Year End of Year
--------------- --------------
Year ended July 31 1998:
Fair value as determined by quoted market prices:
Mutual funds:
Vanguard Money Market Prime Portfolio
Reserves, Inc. $ - $ 1,242,897
Fidelity Emerging Growth Fund 100,739 2,207,520
Fidelity Balanced Fund 21,631 1,134,950
Vanguard Index 500 Trust 375,078 2,959,157
Vanguard Fixed Income Securities
Short-term Corporate Portfolio Fund (48) 188,747
Fidelity Contra Fund 59,533 434,092
Templeton Foreign Fund (25,372) 165,768
Fair value estimated:
Participant Loans - 343,315
$ 531,561 $ 8,676,446
=============== ==============
Year ended July 31 1997:
Fair value as determined by quoted market prices:
Mutual funds:
Vanguard Money Market Prime
Portfolio Reserves, Inc. $ - $ 1,066,948
Fidelity Emerging Growth Fund 329,661 1,380,904
Fidelity Balanced Fund 164,377 862,378
Vanguard Index 500 Trust 454,076 1,727,353
Vanguard Fixed Income Securities
Short-term Corporate Portfolio 2,190 144,390
Fidelity Contra Fund 30,451 193,721
Templeton Foreign Fund 15,178 176,737
Fair value estimated:
Participant Loans - 184,804
--------------- --------------
$ 995,933 $ 5,737,235
=============== ==============
</TABLE>
PAGE
<PAGE>
Delco Remy America Salaried 401(k) Savings Plan
Notes to Financial Statements
4. Income Tax Status
The Plan has received a determination letter from the Internal Revenue Service
dated November 1, 1996 stating that the Plan is qualified under Section 401(a)
of the Internal Revenue Code (the "Code") and, therefore, the related trust is
exempt from taxation. Once qualified, the Plan is required to operate in
conformity with the Code to maintain its qualification. The Plan Sponsor has
indicated that it will take the necessary steps, if any, to maintain the Plan's
qualified status.
5. Year 2000 (unaudited)
The Plan Sponsor 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 Plan Sponsor currently expects the project to be substantially complete by
early 1999. The Plan Sponsor does not expect this project to have a
significant effect on plan operations.
6. Subsequent Event
The Company has elected to combine the assets of the Plan with the assets of
seven other companies' plans effective January 1, 1999. At this time, all Plan
assets will be forwarded to a new trustee and the plan year end will become
December 31.
<PAGE>
<PAGE>
Schedules
PAGE
<PAGE>
<TABLE>
<CAPTION>
Delco Remy America Salaried 401(k) Savings Plan
Line 27a - Schedule of Assets Held for Investment Purposes
July 31, 1998
EIN: 35-1909405
Plan Number: 001
<S> <C> <C> <C>
(b) (c) (d) (e)
Identity of Issue, Borrower, Lessor, Description of Investment Cost Current Value
or Similar Party Including Maturity Date,
Rate of Interest, Par or
Maturity Value
Mutual funds:
Vanguard Money Market Prime Portfolio
Reserves, Inc. 1,240,131 units $ 1,242,897 $ 1,242,897
Fidelity Emerging Growth Fund 74,405 units 1,862,286 2,207,520
Fidelity Balanced Fund 67,997 units 982,779 1,134,950
Vanguard Index 500 Trust 28,358 units 2,212,799 2,959,157
Vanguard Fixed Income Securities
Short-term Corporate Portfolio 17,389 units 187,616 188,747
Fidelity Contra Fund 24,676 units 355,858 434,092
Templeton Foreign Fund 16,412 units 176,137 165,768
7,020,372 8,333,131
Participant loans Terms from 1 to 5 years
with interest rates
ranging from 9.25%
to 10% - 343,315
$ 7,020,372 $ 8,676,446
</TABLE>
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
Delco Remy America Salaried 401(k) Savings Plan
Line 27d - Schedule of Reportable Transactions
Year ended July 31, 1998
EIN: 35-1909405
Columns (e) and (f) not used as they are not applicable. Plan Number: 001
<S> <C> <C> <C> <C> <C> <C>
(A) (B) (C) (D) (G) (H) (I)
CURRENT
VALUE
OF ASSET ON
PURCHASE SELLING COST TRANSACTION NET
IDENTITY OF PARTY INVOLVED DESCRIPTION OF ASSET PRICE PRICE OF ASSET DATE GAIN (LOSS)
- ------------------------------ --------------------- ----------- --------- ----------- ------------- ------------
Category (iii)
- ------------------------------
Vanguard Money Market Prime
Portfolio Reserves, Inc. Mutual Fund
Purchases $ 640,332 $ - $ 640,332 $ 640,332 $ -
Sales - 462,251 462,251 462,251 -
Fidelity Emerging Growth Fund Mutual Fund
Purchases 1,066,952 - 1,066,952 1,066,952 -
Sales - 344,720 301,636 344,720 43,084
Fidelity Balanced Fund Mutual Fund
Purchases 431,255 - 431,255 431,255 -
Sales - 182,439 159,912 182,439 22,527
Vanguard Index 500 Trust Mutual Fund
Purchases 1,174,590 - 1,174,590 1,174,590 -
Sales - 328,340 243,353 328,340 84,987
Fidelity Contra Fund Mutual Fund
Purchases 237,584 - 237,584 237,584 -
Sales - 57,019 47,961 57,019 9,058
EB Money Market Fund Mutual Fund
Purchases 346,528 - 346,528 346,528 -
Sales - 346,528 346,528 346,528 -
<FN>
Category:
(i) Single transactions in cess of 5% of plan assets.
(ii) Series of transactions other than securities transactions.
(iii) Series of securities transactions.
(iv) Transactions with or in conjunction with a person if any single transaction with that person was in excess of 5%.
Note: there were no category (i),(ii) or (iv) transactions.
</TABLE>
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement (Form
S-8) pertaining to the Delco Remy America Salaried 401(k) Savings Plan of our
report dated October 2, 1998 with respect to the financial statements and
schedules of the Delco Remy America Salaried 401(k) Savings Plan included in
this Annual Report (Form 11-K) for the year ended July 31, 1998.
/s/ ERNST & YOUNG LLP
Indianapolis, Indiana
December 18, 1998
