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)
[ ] Annual report pursuant to Section 15(d) of the Securities Exchange Act of
1934
[X] Transitional report pursuant to Section 15(d) of the Securities Exchange
Act of 1934
For the transition period from August 1, 1998 to December 31, 1998
Commission file number: 333-69713
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
Delco Remy America Personal Savings Plan for
Hourly-Rate Employees in the United States(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 as of August 1, 1998, the "Delco Remy America Personal Savings
Plan for Hourly-Rate Employees in the United States" changed from a fiscal
plan year ending July 31 to a calendar plan year ending December 31.
Because the initial Form 11-K filing was filed concurrently with the Form
S-8 Registration Statement for the Plan on or about December 23, 1998, this
transitional report was required for the short plan year ending December
31, 1998.
<PAGE>
REQUIRED INFORMATION
A. Financial Statements and Schedules:
Report of Independent Auditors
Statement of Net Assets Available for Benefits
Statement of Changes in Net Assets Available for Benefits
Notes to Financial Statements
Schedule of Assets Held for Investment Purposes
Schedule of Reportable Transactions
B. Exhibits
Consent of Independent Auditors
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
hereto duly authorized.
Delco Remy America Personal Savings Plan for
Hourly-Rate Employees in the United States(2)
(Name of Plan)
Date June 29, 1999 Delco Remy America, Inc., Administrator
By: /s/ Roderick English
-----------------------------------------
Roderick English, Senior Vice President
Human Resources and Communications
(2) See footnote 1, above.
<PAGE>
Financial Statements and Schedules
The Delco Remy America Personal Savings Plan for Hourly-Rate Employees in the
United States
Five months ended December 31, 1998
and years ended July 31, 1998 and 1997
with Report of Independent Auditors
<PAGE>
The Delco Remy America Personal Savings Plan for
Hourly-Rate Employees in the United States
Financial Statements and Schedules
Five months ended December 31, 1998 and years ended July 31, 1998 and 1997
Contents
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.........................................7
Schedules
Schedule of Assets Held for Investment Purposes......................13
Schedule of Reportable Transactions..................................14
<PAGE>
Report of Independent Auditors
Plan Administrator
The Delco Remy America Personal Savings Plan for
Hourly-Rate Employees in the United States
We have audited the accompanying statements of net assets available for benefits
of the Delco Remy America Personal Savings Plan for Hourly-Rate Employees in the
United States as of December 31, 1998 and July 31, 1998 and 1997, and the
related statements of changes in net assets available for benefits for the five
months ended December 31, 1998 and the years ended July 31, 1998 and 1997. 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 July 31, 1998 and 1997 and the changes in its net assets
available for benefits for the five months ended December 31, 1998 and the years
ended July 31, 1998 and 1997, 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 five months then ended, are presented for purposes of additional
analysis and are not a required part of the financial statements but are
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. These supplemental schedules are the responsibility of the
Plan's management. The Fund Information in the statements of net assets
available for benefits and the statements of changes in net assets available for
benefits is presented for purposes of additional analysis rather than to present
the net assets available for benefits and changes in net assets available for
benefits 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
May 21, 1999
<PAGE>
The Delco Remy America Personal Savings Plan for Hourly-Rate Employees in the
United States
<TABLE>
<CAPTION>
Statement of Net Assets Available for Benefits, with Fund Information
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
December 31, 1998
Fund Information
-------------------------------------------------------------------------------------------------------------
Vanguard Vanguard
Money Fixed
Market Income
Prime Securities Fidelity
Portfolio Short-Term Fidelity Vanguard Emerging Fidelity Templeton
Reserves, Corporate Balanced Index 500 Growth Contra Foreign
Inc. Portfolio Fund Trust Fund Fund Fund Loan Fund Total
-------------------------------------------------------------------------------------------------------------
Assets:
Investments, at
fair value: $2,697,652 $376,212 $1,482,791 $3,695,901 $2,687,978 $401,079 $112,225 $508,941 $11,962,779
Net assets available -------------------------------------------------------------------------------------------------------------
for benefits $2,697,652 $376,212 $1,482,791 $3,695,901 $2,687,978 $401,079 $112,225 $508,941 $11,962,779
=============================================================================================================
<FN>
See accompanying notes.
</FN>
</TABLE>
<PAGE>
The Delco Remy America Personal Savings Plan for Hourly-Rate Employees in the
United States
<TABLE>
<CAPTION>
Statement of Net Assets Available for Benefits, with Fund Information
<S> <C> <C> <C> <C> <C> <C>
July 31, 1998
Fund Information
-------------------------------------------------------------------------------------
Vanguard
Vanguard Fixed
Money Income
Market Securities
Prime Short-Term Fidelity Vanguard Fidelity Fidelity
Portfolio Corporate Balanced Index 500 Emerging Contra
Reserves, Inc. Portfolio Fund Trust Growth Fund Fund
-------------------------------------------------------------------------------------
Assets:
Investments, at fair value: $2,561,671 $319,475 $1,382,429 $3,614,451 $2,383,541 $ 352,011
Participant contribution receivable - - - - - -
-------------------------------------------------------------------------------------
Net assets available for benefits $2,561,671 $319,475 $1,382,429 $3,614,451 $2,383,541 $ 352,011
=====================================================================================
<C> <C> <C> <C>
Templeton
Foreign Temporary
Fund Loan Fund Fund Total
------------------------------------------------------------
Assets:
Investments, at fair value: $ 124,383 $ 434,227 $ - $11,172,188
Participant contribution receivable - - 74,713 74,713
------------------------------------------------------------
Net assets available for benefits $ 124,383 $ 434,227 $ 74,713 $11,246,901
============================================================
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
July 31, 1997
Fund Information
-------------------------------------------------------------------------------------
Vanguard
Vanguard Fixed
Money Income
Market Securities
Prime Short-Term Fidelity Vanguard Fidelity Fidelity
Portfolio Corporate Balanced Index 500 Emerging Contra
Reserves, Inc. Portfolio Fund Trust Growth Fund Fund
-------------------------------------------------------------------------------------
Assets:
Investments, at fair value: $2,791,887 $252,244 $963,126 $2,274,089 $ 1,537,641 $ 206,182
Participant contribution receivable - - - - - -
-------------------------------------------------------------------------------------
2,791,887 252,244 963,126 2,274,089 1,537,641 206,182
Liabilities:
Refund of participant contributions payable - - - - - -
-------------------------------------------------------------------------------------
Net assets available for benefits $2,791,887 $252,244 $963,126 $2,274,089 $ 1,537,641 $ 206,182
=====================================================================================
<C> <C> <C> <C>
Templeton
Foreign Temporary
Fund Loan Fund Fund Total
----------------------------------------------------------------
Assets: $ 117,754 $ 274,381 $ - $ 8,417,304
Investments, at fair value: - - 74,713 74,713
Participant contribution receivable ----------------------------------------------------------------
117,754 274,381 74,713 8,492,017
Liabilities:
Refund of participant contributions payable
- - (68,129) (68,129)
Net assets available for benefits ----------------------------------------------------------------
$ 117,754 $ 274,381 $ 6,584 $ 8,423,888
================================================================
<FN>
See accompanying notes.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets Available for Benefits, with Fund Information
<S> <C> <C> <C> <C> <C> <C>
Five months ended December 31, 1998
Fund Information
-------------------------------------------------------------------------------------
Vanguard
Vanguard Fixed
Money Income
Market Securities
Prime Short-Term Fidelity Vanguard Fidelity Fidelity
Portfolio Corporate Balanced Index 500 Emerging Contra
Reserves, Inc. Portfolio Fund Trust Growth Fund Fund
-------------------------------------------------------------------------------------
Additions:
Employee voluntary contributions $ 182,984 $ 35,302 $ 118,850 $ 233,110 $ 152,275 $ 38,399
Rollover Contributions - - 2,149 14,732 14,732 -
Interest and dividends 55,776 8,813 118,381 35,367 157,416 8
-------------------------------------------------------------------------------------
Total additions 238,760 44,115 239,380 283,209 324,423 38,407
Deductions:
Benefits paid to participants 235,409 22,731 148,611 272,681 234,171 26,120
Administrative expenses 3,256 438 1,707 4,305 2,818 -
-------------------------------------------------------------------------------------
Total deductions 238,665 23,169 150,318 276,986 236,989 26,120
-------------------------------------------------------------------------------------
95 20,946 89,062 6,223 87,434 12,287
Interfund transfers 135,886 35,299 18,165 (223,517) 37,556 (3,026)
Net appreciation (depreciation) in fair
value of investments - 492 (6,865) 298,744 179,447 39,807
-------------------------------------------------------------------------------------
Net increase (decrease) 135,981 56,737 100,362 81,450 304,437 49,068
Net assets available for benefits:
Beginning of period 2,561,671 319,475 1,382,429 3,614,451 2,383,541 352,011
-------------------------------------------------------------------------------------
End of period $2,697,652 $ 376,212 $1,482,791 $3,695,901 $2,687,978 $401,079
=====================================================================================
<C> <C> <C> <C>
Templeton
Foreign Temporary
Fund Loan Fund Fund Total
------------------------------------------------------------
Additions: $ 21,639 $ - $ - $ 782,559
Employee voluntary contributions 7,010 - - 38,623
Rollover Contributions 12,416 14,272 - 402,449
Interest and dividends ------------------------------------------------------------
41,065 14,272 - 1,223,631
Total additions
Deductions: 5,071 41,770 - 986,564
Benefits paid to participants - - - 12,524
Administrative expenses ------------------------------------------------------------
5,071 41,770 - 999,088
Total deductions ------------------------------------------------------------
35,994 (27,498) - 224,543
(27,862) 102,212 (74,713) -
Interfund transfers
Net appreciation (depreciation) in fair (20,290) - 491,335
value of investments ------------------------------------------------------------
(12,158) 74,714 (74,713) 715,878
Net increase (decrease)
Net assets available for benefits: 124,383 434,227 74,713 11,246,901
Beginning of period ------------------------------------------------------------
End of period $ 112,225 $508,941 $ - $11,962,779
============================================================
<FN>
See accompanying notes
</FN>
</TABLE>
<PAGE>
The Delco Remy America Personal Savings Plan for Hourly-Rate Employees in the
United States
<TABLE>
<CAPTION>
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 Fixed
Money Income
Market Securities
Prime Short-Term Fidelity Vanguard Fidelity Fidelity
Portfolio Corporate Balanced Index 500 Emerging Contra
Reserves, Inc. Portfolio Fund Trust Growth Fund Fund
-------------------------------------------------------------------------------------
Additions:
Employee voluntary contributions $ 770,617 $ 136,548 $ 393,933 $ 848,076 $ 546,101 $119,650
Rollover Contributions 24,409 730 10,903 14,595 13,444 622
Interest and dividends 144,204 19,191 129,058 58,853 358,283 304
-------------------------------------------------------------------------------------
Total additions 939,230 156,469 533,894 921,524 917,828 120,576
Deductions:
Benefits paid to participants 698,314 122,743 114,191 311,813 159,133 75,888
Administrative expenses 6,612 709 2,818 6,896 4,574 -
-------------------------------------------------------------------------------------
Total deductions 704,926 123,452 117,009 318,709 163,707 75,888
-------------------------------------------------------------------------------------
234,304 33,017 416,885 602,815 754,121 44,688
Interfund transfers (464,520) 34,264 (29,441) 279,754 7,990 51,700
Net appreciation (depreciation) in fair
value of investments - (50) 31,859 457,793 83,789 49,441
-------------------------------------------------------------------------------------
Net increase (decrease) (230,216) 67,231 419,303 1,340,362 845,900 145,829
Net assets available for benefits:
Beginning of year 2,791,887 252,244 963,126 2,274,089 1,537,641 206,182
-------------------------------------------------------------------------------------
End of year $2,561,671 $ 319,475 $1,382,429 $3,614,451 $2,383,541 $352,011
=====================================================================================
<C> <C> <C> <C>
Templeton
Foreign Temporary
Fund Loan Fund Fund Total
------------------------------------------------------------
Additions:
Employee voluntary contributions $ 78,306 $ - $ 74,713 $ 2,967,944
Rollover Contributions 2,118 - - 66,821
Interest and dividends 12,298 26,878 - 749,069
------------------------------------------------------------
Total additions 92,722 26,878 74,713 3,783,834
Deductions:
Benefits paid to participants 28,368 33,221 - 1,543,671
Administrative expenses - - - 21,609
------------------------------------------------------------
Total deductions 28,368 33,221 - 1,565,280
------------------------------------------------------------
64,354 (6,343) 74,713 2,218,554
Interfund transfers (39,352) 166,189 (6,584) -
Net appreciation (depreciation) in fair
value of investments (18,373) - - 604,459
------------------------------------------------------------
Net increase (decrease) 6,629 159,846 68,129 2,823,013
Net assets available for benefits:
Beginning of year 117,754 274,381 6,584 8,423,888
------------------------------------------------------------
End of year $ 124,383 $434,227 $ 74,713 $ 11,246,901
============================================================
<FN>
See accompanying notes
</FN>
</TABLE>
<PAGE>
The Delco Remy America Personal Savings Plan for Hourly-Rate Employees in the
United States
<TABLE>
<CAPTION>
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 Fixed
Money Income
Market Securities
Prime Short-Term Fidelity Vanguard Fidelity Fidelity
Portfolio Corporate Balanced Index 500 Emerging Contra
Reserves, Inc. Portfolio Fund Trust Growth Fund Fund
-------------------------------------------------------------------------------------
Additions:
Employee voluntary contributions $ 890,551 $ 112,693 $ 305,739 $ 571,002 $ 492,978 $ 68,293
Rollover Contributions 525,325 31,000 52,952 196,130 135,901 19,206
Interest and dividends 148,535 11,495 33,225 31,681 3,556 286
-------------------------------------------------------------------------------------
Total additions 1,564,411 155,188 391,916 798,813 632,435 87,785
Deductions:
Benefits paid to participants 1,025,173 35,626 168,340 211,030 171,321 19,938
Administrative expenses 6,171 443 1,540 3,188 2,628 -
Participant contribution refunds - - - - - -
-------------------------------------------------------------------------------------
Total deductions 1,031,344 36,069 169,880 214,218 173,949 19,938
-------------------------------------------------------------------------------------
533,067 119,119 222,036 584,595 458,486 67,847
Interfund transfers (423,470) (24,050) (29,201) 282,666 (153,998) 103,524
Net appreciation in fair
value of investments - 3,027 182,616 596,913 367,412 34,811
-------------------------------------------------------------------------------------
Net increase 109,597 98,096 375,451 1,464,174 671,900 206,182
Net assets available for benefits:
Beginning of year 2,682,290 154,148 587,675 809,915 865,741 -
-------------------------------------------------------------------------------------
End of year $2,791,887 $ 252,244 $ 963,126 $2,274,089 $1,537,641 $ 206,182
=====================================================================================
<C> <C> <C> <C>
Templeton
Foreign Temporary
Fund Loan Fund Fund Total
-----------------------------------------------------------
Additions:
Employee voluntary contributions $ 49,042 $ - $ 74,713 $2,565,011
Rollover Contributions 19,276 - - 979,790
Interest and dividends 532 17,876 - 247,186
-----------------------------------------------------------
Total additions 68,850 17,876 74,713 3,791,987
Deductions:
Benefits paid to participants 14,710 49,625 - 1,695,763
Administrative expenses - - - 13,970
Participant contribution refunds - - 68,129 68,129
-----------------------------------------------------------
Total deductions 14,710 49,625 68,129 1,777,862
-----------------------------------------------------------
54,140 (31,749) 6,584 2,014,125
Interfund transfers 50,037 194,492 - -
Net appreciation in fair
value of investments 13,577 - - 1,198,356
-----------------------------------------------------------
Net increase 117,754 162,743 6,584 3,212,481
Net assets available for benefits:
Beginning of year - 111,638 - 5,211,407
-----------------------------------------------------------
End of year $ 117,754 $ 274,381 $ 6,584 $8,423,888
===========================================================
<FN>
See accompanying notes
</FN>
</TABLE>
<PAGE>
The Delco Remy American Personal Savings Plan for
Hourly-Rate Employees in the United States
Notes to Financial Statements
December 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 fair value based on the
quoted market price as of the most recent valuation date at the end of the plan
year. Participant loans are valued at fair value which is estimated. 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:
o Vanguard Money Market Prime Portfolio Reserves - 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.
o Vanguard Fixed Income Securities Short-Term Corporate Portfolio Fund - This
fund invests in high quality, short-term bonds with an average maturity
between one and three years.
o Fidelity Balanced Fund - This fund invests in common stocks and corporate,
government and agency bonds.
o Vanguard Index 500 Trust - This fund invests in common stocks of large
companies.
o 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>
The Delco Remy American Personal Savings Plan for
Hourly-Rate Employees in the United States
Notes to Financial Statements (continued)
1. Significant Accounting Policies (continued)
o Fidelity Contra Fund - This fund invests primarily in stocks of smaller
companies that are undervalued.
o Templeton Foreign Fund - This fund invests primarily in stocks of
international companies consistency of bonds and other long-term debt
instruments.
The Temporary Fund serves an administrative function that temporarily holds
funds received into the Delco Remy America Personal Savings Plan for Hourly-Rate
Employees in the United States (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 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 hourly employees of the Company, who have attained
seniority, which is defined in the applicable collective bargaining agreement.
The Plan is subject to the provisions of the Employee Retirement Income Security
Act of 1974 (ERISA).
Employees may make voluntary contributions to their account through periodic
payroll deductions at rates from 1% to 25% of gross pay. In addition,
participants may elect to contribute from 1% to 100% of their share of the
Company profit sharing distribution. The profit sharing contribution and payroll
deductions combined cannot exceed the maximum contribution limitations
established annually by the Internal Revenue Service.
<PAGE>
2. Description of Plan (continued)
Participants may designate that their contributions be deposited in any of seven
investment options designated by the Plan administrator. Participant
contributions vest immediately.
A participant may make a complete or partial hardship withdrawal of amounts held
in his or her account. The withdrawal must be necessary in light of immediate
and heavy financial needs of the participant. During the twelve months following
a withdrawal, employee contributions are suspended.
Participants may borrow from their accounts a minimum of $1,000 up to a maximum
of the lesser of $50,000 or one-half of the vested account balance. Loans bear
interest at the Plan Trustee's prime rate. Payments on the outstanding loans
must be made at least quarterly and the repayment period can range from twelve
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.
The Company has the right to amend or terminate the Plan.
More detailed information concerning the Plan may be found by consulting the
Summary Plan Description which is available from the Plan Administrator.
<PAGE>
3. Investments
During the five months ended December 31, 1998 and 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% of more of plan assets are separately identified.
<TABLE>
<CAPTION>
<S> <C> <C>
Net Appreciation
(Depreciation)
in Fair Value During Fair Value at
Period End of Period
-------------------------------------------------
Five months ended December 31, 1998:
Fair value as determined by quoted market
prices:
Mutual funds:
Vanguard Money Market Prime
Portfolio Reserves, Inc. $ - $ 2,697,652
Vanguard Index 500 Trust 298,744 3,695,901
Fidelity Emerging Growth Fund 179,447 2,687,978
Fidelity Balanced Fund (6,865) 1,482,791
Fidelity Contra Fund 39,807 401,079
Templeton Foreign Fund (20,290) 112,225
Vanguard Fixed Income Securities
Short-Term Corporate Portfolio 492 376,212
Fair value estimated:
Participant loans - 508,941
-------------------------------------------------
$ 491,335 $ 11,962,779
=================================================
Year ended July 31, 1998:
Fair value as determined by quoted market prices:
Mutual funds:
Vanguard Money Market Prime
Portfolio Reserves, Inc. $ - $ 2,561,671
Vanguard Index 500 Trust 457,793 3,614,451
Fidelity Emerging Growth Fund 83,789 2,383,541
Fidelity Balanced Fund 31,859 1,382,429
Fidelity Contra Fund 49,441 352,011
Templeton Foreign Fund (18,373) 124,383
Vanguard Fixed Income Securities
Short-Term Corporate Portfolio (50) 319,475
Fair value estimated:
Participant loans - 434,227
-------------------------------------------------
$ 604,459 $ 11,172,188
=================================================
</TABLE>
<PAGE>
3. Investments (continued)
<TABLE>
<CAPTION>
<S> <C> <C>
Net Appreciation
(Depreciation)
in Fair Value During Fair Value at
Period End of Period
-----------------------------------------------
Year ended July 31, 1997:
Fair value as determined by quoted market prices:
Mutual funds:
Vanguard Money Market Prime
Portfolio Reserves, Inc. $ - $ 2,791,887
Vanguard Index 500 Trust 596,913 2,274,089
Fidelity Emerging Growth Fund 367,412 1,537,641
Fidelity Balanced Fund 182,616 963,126
Fidelity Contra Fund 34,811 206,182
Templeton Foreign Fund 13,577 117,754
Vanguard Fixed Income Securities
Short-Term Corporate Portfolio 3,027 252,244
Fair value estimated:
Participant loans - 274,381
===============================================
$ 1,198,356 $ 8,417,304
===============================================
</TABLE>
4. Income Tax Status
The Plan has received a determination letter from the Internal Revenue Service
dated May 21, 1998 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 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 June 1999. Costs associated with
modifying software and equipment are not estimated to be significant and will be
paid by the Plan Sponsor.
<PAGE>
5. Year 2000 (unaudited) (continued)
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 mid 1999. If modification of data processing
systems of either the Plan, the Plan Sponsor, or its service providers are not
completed timely, the year 2000 problem could have 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.
6. Subsequent Event
The Plan has elected to change the trustee effective January 1, 1999.
<PAGE>
Schedules
<PAGE>
The Delco Remy America Personal Savings Plan
for Hourly-Rate Employees in the United States
<TABLE>
<CAPTION>
Line 27a - Schedule of Assets Held for Investment Purposes
December 31, 1998
EIN: 35-1909405
Plan Number: 002
<S> <C> <C> <C>
(b) (c) (d) (e)
Description of
Investment
Including Maturity
Date, Rate of
Identity of Issue, Borrower, Interest, Par or Current
Lessor, or Similar Party Maturity Value Cost Value
- -------------------------------------------------------------------------------------------------------
Mutual Funds:
Vanguard Money Market Prime
Portfolio Reserves, Inc. 2,697,652 units $ 2,697,652 $ 2,697,652
Vanguard Index 500 Trust 32,435 units 2,693,919 3,695,901
Fidelity Emerging Growth Fund 84,607 units 2,195,227 2,687,978
Fidelity Balanced Fund 90,635 units 1,340,498 1,482,791
Fidelity Contra Fund 20,447 units 297,902 401,079
Templeton Foreign Fund 13,376 units 133,105 112,225
Vanguard Fixed Income Securities
Short-Term Corporate Portfolio 34,706 units 375,075 376,212
-------------------------------
9,733,379 11,453,838
Participant loans Terms from 1 to 5
years with interest
rates ranging from
9.25% to 10% - 508,941
-------------------------------
$ 9,733,379 $11,962,779
===============================
</TABLE>
<PAGE>
The Delco Remy America Personal Savings Plan for Hourly Rate Employees in the
United States
<TABLE>
<CAPTION>
Line 27d - Schedule of Reportable Transactions
Five months ended December 31, 1998
EIN: 35-1909405
Columns (e) and (f) not used as they are not applicable. Plan Number: 002
<S> <C> <C> <C> <C> <C> <C>
(h)
Current
Value
(c) (d) (g) of Asset on (i)
(a) (b) 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 Mutual fund
Portfolio Reserves, Inc. Purchases $ 685,921 $ - $ 685,921 $ 685,921 $ -
Sales - 559,351 559,351 559,351 -
Vanguard Index 500 Trust Mutual fund
Purchases 417,909 - 417,909 417,909 -
Sales - 635,698 523,387 635,698 112,311
Fidelity Emerging Growth Fund Mutual fund
Purchases 556,152 - 556,152 556,152 -
Sales - 432,125 388,834 432,125 43,291
<FN>
Category:
(i) Single transactions in excess 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.
</FN>
</TABLE>
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in Registration Statement (Form
S-8) pertaining to The Delco Remy America Savings Plan for Hourly-Rate Employees
in the United States of our report dated May 21, 1999 with respect to the
financial statements of The Delco Remy America Savings Plan for Hourly-Rate
Employees in the United States included in this Annual Report (Form 11-K) for
the year ended December 31, 1998.
/s/ Ernst & Young LLP
Indianapolis, Indiana
June 25, 1999
