UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year Ended December 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Transition Period From ______ to ______
Commission File Number 1-04785
DEL WEBB CORPORATION RETIREMENT SAVINGS PLAN
(Full title of the plan)
DEL WEBB CORPORATION
(Exact name of Issuer as specified in charter)
6001 North 24th Street, Phoenix, AZ 85016
(602) 808-8000
(Address, including zip code, and telephone number and
area code, of Issuer's principal executive offices)
Dated: June 29, 1999
<PAGE>
REQUIRED INFORMATION
A. Financial Statements
1. Audited statements of net assets available for plan benefits as of
December 31, 1998 and 1997.
2. Audited statements of changes in net assets available for plan
benefits for the years ended December 31, 1998 and 1997.
B. Exhibit
23. Consent of KPMG LLP.
2
<PAGE>
INDEPENDENT AUDITORS' REPORT
Benefits Advisory Committee
Del Webb Corporation
Retirement Savings Plan:
We have audited the accompanying statements of net assets available for plan
benefits of the Del Webb Corporation Retirement Savings Plan as of December 31,
1998 and 1997, and the related statements of changes in net assets available for
plan 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 plan benefits of the Del
Webb Corporation Retirement Savings Plan as of December 31, 1998 and 1997, and
the changes in net assets available for plan 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 supplementary 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.
May 27, 1999
3
<PAGE>
DEL WEBB CORPORATION
RETIREMENT SAVINGS PLAN
Statements of Net Assets Available for Plan Benefits
December 31, 1998 and 1997
1998 1997
----------- ----------
Assets:
Investments, at fair value (note 3):
Fidelity Puritan Fund $ 6,746,489 6,038,871
Fidelity Magellan Fund 12,840,070 9,194,571
Fidelity Contra Fund 4,360,226 3,324,146
Fidelity Growth & Income Fund 11,480,770 9,045,261
Fidelity Intermediate Bond Fund 1,985,720 1,643,204
Fidelity Stock Selector Fund 2,521,841 2,152,325
Fidelity Global Balanced Fund 189,688 222,385
Fidelity Retirement Money Market Fund 6,569,156 6,144,777
Spartan U.S. Equity Index Fund 3,742,759 2,071,496
PBHS Emerging Growth Fund 226,610 155,421
Janus Mercury Fund 907,700 104,955
Janus Worldwide Fund 1,265,082 638,586
Marshall & Ilsley Money Market Fund 719,132 576,373
Del Webb Corporate Fund 2,691,333 2,480,546
Participant loans 1,025,641 986,545
----------- ----------
Total investments 57,272,217 44,779,462
----------- ----------
Receivables:
Participants' contributions 193,221 136,252
Employer's contributions 69,451 51,355
----------- ----------
Total assets 57,534,889 44,967,069
----------- ----------
Net assets available for plan benefits $57,534,889 44,967,069
=========== ==========
See accompanying notes to financial statements.
4
<PAGE>
DEL WEBB CORPORATION
RETIREMENT SAVINGS PLAN
Statements of Changes in Net Assets
Available for Plan 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 3) $ 6,916,132 5,312,193
Interest and dividends 3,090,161 2,647,079
----------- ----------
10,006,293 7,959,272
----------- ----------
Contributions:
Participants 5,173,674 4,628,686
Employer - matching 1,840,837 1,648,599
----------- ----------
Total additions 17,020,804 14,236,557
----------- ----------
Deductions from net assets attributed to:
Distributions to and withdrawals by participants 4,419,205 3,392,768
Administrative and other expenses 33,779 52,673
----------- ----------
Total deductions 4,452,984 3,445,441
----------- ----------
Net increase 12,567,820 10,791,116
Net assets available for plan benefits:
Beginning of year 44,967,069 34,175,953
----------- ----------
End of year $57,534,889 44,967,069
=========== ==========
See accompanying notes to financial statements.
5
<PAGE>
DEL WEBB CORPORATION
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(1) DESCRIPTION OF PLAN
The following description of the Del Webb Corporation (Company and Sponsor)
Retirement Savings Plan (Plan) provides only general information.
Participants should refer to the Plan agreement for a more complete
description of the Plan's provisions.
(A) GENERAL
The Plan is a defined contribution plan and covers all eligible
employees of the Company and participating affiliates who are 21 years
of age or older, other than those covered by a collective bargaining
agreement negotiated in good faith with the Company. Terms of the
agreement provide for covered employees to become participants generally
after completion of six months of service.
(B) CONTRIBUTIONS
Participants may contribute from 2% to 6% of their salary (not to exceed
the limits set forth by the Internal Revenue Code, $10,000 in 1998 and
$9,500 in 1997). If such contributions are made by participants, the
Company will provide a matching contribution ("matching contributions"),
which is determined by the Corporation's Board of Directors. During the
two years ended December 31, 1998, the matching contribution has been
50% of the deferral amount. Participants may also deposit up to 9% of
their salaries above the deferral percentage eligible for a matching
contribution as a voluntary deposit ("voluntary deposits") for which the
Company provides no matching contribution. The Plan also allows the
Company to make a "discretionary" contribution to the Plan. The
allocation of the discretionary contribution excludes any participant
eligible for the Company's Deferred Compensation Plan.
The Plan is subject to the regulations established by the Employee
Retirement Income Security Act of 1974 (ERISA).
(C) PARTICIPANT ACCOUNTS
The Plan allows for each participant to control the allocation of their
assets between the various investment funds and make changes to this
allocation at any time. Consequently, each participant's account
reflects earnings or losses resulting from their investment decisions.
(D) VESTING
Participants become 100% vested in their contributions as well as
employer contributions made on their behalf on the date of contribution.
(E) BENEFITS
Benefits are payable upon termination of employment, retirement, death,
election at age 59-1/2 or termination of the Plan. Participants can
receive a lump sum distribution or installment payments for up to a
ten-year period.
(Continued)
6
<PAGE>
DEL WEBB CORPORATION
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(F) PARTICIPANT LOANS
Generally, participants may borrow up to 50% of their account balance
subject to a minimum of $1,000 and a maximum of $50,000. Minimum monthly
repayments of $50 are required. Each loan shall bear an interest rate
equal to the average rate on certificates of deposit with maturities
equivalent to the length of the loan at the beginning of the month the
loan is made. The duration of the loans are subject to a minimum term of
twelve months and a maximum term of 54 months. Participant loans are
stated at the principal balance of the loans outstanding.
(G) INVESTMENT FUNDS
The following is a description of each investment fund as of December
31, 1998:
* Del Webb Corporate Fund - 98% investment in common stock of the
Company (a party in interest) and 2% cash.
* Fidelity Puritan Fund - investment in a broadly diversified
portfolio of high-yielding securities.
* Fidelity Magellan Fund - investment in stocks of companies with
above-average growth potential.
* Fidelity Contra Fund - investment in stocks of companies with
potential for capital growth.
* Fidelity Growth & Income Fund - investment in a broadly diversified
portfolio of high-yielding securities.
* Fidelity Intermediate Bond Fund - investment in various types of
bonds that offer a return in excess of money market rates.
* Fidelity Stock Selector Fund - investments in stocks of companies
which are deemed by the Fund manager to be undervalued in relation
to other companies in the same industry.
* Fidelity Global Balanced Fund - investments in stocks, bonds and
money market instruments issued anywhere in the world.
* Spartan U.S. Equity Index Fund - investments in stocks of companies
that primarily comprise the S&P 500.
* Fidelity Retirement Money Market Fund - investment in high-quality
short-term money market instruments.
* PBHG Emerging Growth Fund - investment in stocks and equity
securities of companies with high growth potential.
* Janus Mercury Fund - investment in a diversified portfolio of stocks
of companies of any size.
* Janus Worldwide Fund - investment in common stocks of foreign and
domestic issuers.
(Continued)
7
<PAGE>
DEL WEBB CORPORATION
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
* Marshall & Ilsley Money Market Fund - investment in high quality
short-term money market instruments used to accumulate contributions
temporarily, which are then transferred to participant specified
investments on a monthly basis.
(H) PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the
right under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of the Employer Retirement
Income Security Act of 1974 (ERISA). In the event of Plan termination,
participants will be entitled to 100 percent of their account balances.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(A) BASIS OF PRESENTATION
The accompanying financial statements have been prepared on the accrual
basis and present the net assets available for plan benefits and changes
in those net assets.
(B) 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 reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements. Estimates also affect the reported amounts of
revenues and expenses during the reporting period. Actual results could
differ from those estimates.
(C) INVESTMENT VALUATION
Investments in mutual funds are stated at the Plan's proportionate
interest in the net assets of the funds, which are valued at market.
Investments in money market funds are stated at the reinvested share
values which represent market. Investments in common stock of the
Corporation are valued at the quoted market price.
(D) ADMINISTRATIVE AND OTHER EXPENSES
Other than trustee fees, administrative expenses of the Plan are paid
directly by the Company, accordingly, such expenses are not reflected in
the accompanying financial statements.
(E) SECURITIES TRANSACTIONS
Purchases and sales of securities are recorded on a trade-date basis.
(F) PARTY-IN-INTEREST
Certain Plan investments are shares of mutual funds managed by Fidelity
Investments. Fidelity Management Trust Company is the trustee as defined
by the Plan and, therefore, these transactions qualify as
party-in-interest.
(Continued)
8
<PAGE>
(3) INVESTMENTS
Net appreciation in fair market value of investments (including investments
bought, sold and held) during the years ended December 31, 1998 and 1997
follows:
<TABLE>
<CAPTION>
1998 1997
------------------------------- ------------------------------
REALIZED GAIN UNREALIZED GAIN REALIZED GAIN UNREALIZED GAIN
(LOSS) (LOSS) (LOSS) (LOSS)
------------- --------------- ------------- ---------------
<S> <C> <C> <C> <C>
Del Webb Corporate Fund $ 248,163 (15,431) 79,439 855,981
----------- ---------- ---------- ----------
Mutual funds:
Fidelity Puritan Fund 184,454 107,217 213,729 428,533
Fidelity Magellan Fund 274,103 2,326,524 243,208 1,071,067
Fidelity Contra Fund 194,016 551,654 66,188 130,450
Fidelity Growth & Income Fund 761,317 1,145,420 342,723 1,262,603
Fidelity Intermediate Bond Fund 2,527 9,965 (6,163) 17,565
Fidelity Stock Selector Fund 73,321 64,334 92,406 118,636
Fidelity Global Balanced Fund 11,908 19,486 22,794 10,192
Spartan U.S. Equity Index Fund 43,575 585,332 61,200 337,188
PBHG Emerging Growth Fund (874) 14,125 2,317 (98)
Janus Mercury Fund 1,467 129,478 1 (8,651)
Janus Worldwide Fund 2,912 181,139 7,496 (36,611)
----------- ---------- ---------- ----------
1,548,726 5,134,674 1,045,899 3,330,874
----------- ---------- ---------- ----------
Totals $ 1,796,889 5,119,243 1,125,338 4,186,855
=========== ========== ========== ==========
Net appreciation in fair value of
investments 6,916,132 5,312,193
========== ==========
</TABLE>
At December 31, 1998, the fair value of investments which exceed 5% of net
assets available for benefits are as follows:
Del Webb Corporate Fund $ 2,691,333
Fidelity Puritan Fund 6,746,489
Fidelity Magellan Fund 12,840,070
Fidelity Contra Fund 4,360,226
Fidelity Growth and Income Fund 11,480,770
Fidelity Stock Select Fund 2,521,841
Fidelity Retirement Money Market Fund 6,569,156
Spartan U.S. Equity Index Fund 3,742,759
(Continued)
9
<PAGE>
DEL WEBB CORPORATION
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(4) NET ASSETS AVAILABLE FOR BENEFITS
The following represents changes in net assets available for benefits of
the plan during 1998 and 1997:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1998:
PBHG JANUS JANUS DEL WEBB
EMERGING MERCURY WORLDWIDE CORPORATE
GROWTH FUND FUND FUND
--------- -------- ---------- ----------
<S> <C> <C> <C> <C>
Additions to net assets attributed
to:
Investment income:
Net appreciation
(depreciation) in fair
value of investments $ 13,251 130,945 184,051 232,732
Interest and dividend income 715 69,892 5,028 --
--------- -------- ---------- ----------
Total investment income 13,966 200,837 189,079 232,732
--------- -------- ---------- ----------
Contributions:
Participants 86,811 118,129 235,340 297,928
Employer - matching 28,700 35,590 76,479 112,440
--------- -------- ---------- ----------
Total contributions 115,511 153,719 311,819 410,368
--------- -------- ---------- ----------
Total additions 129,477 354,556 500,898 643,100
Deductions from net assets
attributed to:
Distributions to and
withdrawals by participants (3,224) (13,897) (44,433) (188,877)
Administrative and other expenses (90) (60) (23) (529)
--------- -------- ---------- ----------
Total deductions (3,314) (13,957) (44,456) (189,406)
--------- -------- ---------- ----------
Interfund transfers, including loan
issuances and repayments (54,974) 462,146 170,055 (242,907)
--------- -------- ---------- ----------
Net increase in net
assets available for
plan benefits 71,189 802,745 626,497 210,787
Net assets available for plan benefits:
Beginning of year 155,421 104,955 638,585 2,480,546
--------- -------- ---------- ----------
End of year $ 226,610 907,700 1,265,082 2,691,333
========= ======== ========== ==========
FIDELITY
FIDELITY FIDELITY FIDELITY GROWTH
PURITAN MAGELLAN CONTRA AND INCOME
FUND FUND FUND FUND
---------- ----------- ---------- -----------
Additions to net assets attributed to:
Investment income:
Net appreciation
(depreciation) in fair
value of investments 291,671 2,600,627 745,670 1,906,737
Interest and dividend income 701,171 593,826 321,772 635,006
---------- ----------- ---------- -----------
Total investment income 992,842 3,194,453 1,067,442 2,541,743
---------- ----------- ---------- -----------
Contributions:
Participants 440,643 817,210 518,848 1,008,229
Employer - matching 166,666 298,989 183,220 361,195
---------- ----------- ---------- -----------
Total contributions 607,309 1,116,199 702,068 1,369,424
---------- ----------- ---------- -----------
Total additions 1,600,151 4,310,652 1,769,510 3,911,167
Deductions from net assets
attributed to:
Distributions to and
withdrawals by participants (572,549) (582,288) (359,372) (815,082)
Administrative and other
expenses (4,523) (2,893) (566) (5,946)
---------- ----------- ---------- -----------
Total deductions (577,072) (585,181) (359,938) (821,028)
---------- ----------- ---------- -----------
Interfund transfers, including loan
issuances and repayments (315,461) (79,972) (373,492) (654,630)
---------- ----------- ---------- -----------
Net increase in net
assets available
for plan benefits 707,618 3,645,499 1,036,080 2,435,509
Net assets available for plan benefits:
Beginning of year 6,038,871 9,194,571 3,324,146 9,045,261
---------- ----------- ---------- -----------
End of year 6,746,489 12,840,070 4,360,226 11,480,770
========== =========== ========== ===========
</TABLE>
(Continued)
10
<PAGE>
DEL WEBB CORPORATION
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
YEAR ENDED DECEMBER 31, 1998:
<TABLE>
<CAPTION>
FIDELITY FIDELITY FIDELITY FIDELITY
INTERMEDIATE STOCK GLOBAL RETIREMENT
BOND SELECTOR BALANCED MONEY MARKET
FUND FUND FUND FUND
----------- ---------- ---------- ------------
<S> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net appreciation
(depreciation) in fair
value of investments $ 12,492 137,655 31,394 --
Interest and dividend income 98,347 184,374 3,422 324,068
----------- ---------- -------- ----------
Total investment income 110,839 322,029 34,816 324,068
----------- ---------- -------- ----------
Contributions:
Participants 187,737 341,794 -- 543,983
Employer - matching 72,437 122,603 -- 192,382
----------- ---------- -------- ----------
Total contributions 260,174 464,397 -- 736,365
----------- ---------- -------- ----------
Total additions 371,013 786,426 34,816 1,060,433
Deductions from net assets
attributed to:
Distributions to and
withdrawals by participants (134,268) (190,477) (23,282) (1,257,875)
Administrative and other
expenses (1,983) (185) (58) (12,881)
----------- ---------- -------- ----------
Total deductions (136,251) (190,662) (23,340) (1,270,756)
----------- ---------- -------- ----------
Interfund transfers, including loan
issuances and repayments 107,754 (226,248) (44,173) 634,702
----------- ---------- -------- ----------
Net increase in net
assets available
for plan benefits 342,516 369,516 (32,697) 424,379
Net assets available for plan
benefits:
Beginning of year 1,643,204 2,152,325 222,385 6,144,777
----------- ---------- -------- ----------
End of year $ 1,985,720 2,521,841 189,688 6,569,156
=========== ========== ======== ==========
SPARTAN MARSHALL &
U.S. EQUITY ILSLEY
EQUITY INDEX MONEY PARTICIPANT CHANGE IN
FUND MARKET FUND LOANS RECEIVABLES TOTAL
---------- ----------- ----------- ----------- -----
Additions to net assets attributed to:
Investment income:
Net appreciation
(depreciation) in fair
value of investments 628,907 -- -- -- 6,916,132
Interest and dividend income 64,169 35,326 53,045 -- 3,090,161
---------- -------- ---------- ------- -----------
Total investment income 693,076 35,326 53,045 -- 10,006,293
---------- -------- ---------- ------- -----------
Contributions:
Participants 439,695 81,905 -- 55,422 5,173,674
Employer - matching 141,464 29,029 -- 19,643 1,840,837
---------- -------- ---------- ------- -----------
Total contributions 581,159 110,934 -- 75,065 7,014,511
---------- -------- ---------- ------- -----------
Total additions 1,274,235 146,260 53,045 75,065 17,020,804
Deductions from net assets
attributed to:
Distributions to and
withdrawals by participants (144,688) -- (88,893) -- (4,419,205)
Administrative and other
expenses (540) (3,502) -- -- (33,779)
---------- -------- ---------- ------- -----------
Total deductions (145,228) (3,502) (88,893) -- (4,452,984)
---------- -------- ---------- ------- -----------
Interfund transfers, including loan
issuances and repayments 542,256 -- 74,944 -- --
---------- -------- ---------- ------- -----------
Net increase in net
assets available
for plan benefits 1,671,263 142,758 39,096 75,065 12,567,820
Net assets available for plan
benefits:
Beginning of year 2,071,496 576,374 986,545 187,607 44,967,069
---------- -------- ---------- ------- -----------
End of year 3,742,759 719,132 1,025,641 262,672 57,534,889
========== ======== ========== ======= ===========
</TABLE>
(Continued)
11
<PAGE>
DEL WEBB CORPORATION
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
YEAR ENDED DECEMBER 31, 1997:
<TABLE>
<CAPTION>
FIDELITY
DEL WEBB FIDELITY MAGELLAN FIDELITY
CORPORATE FUND PURITAN FUND FUND CONTRA FUND
-------------- ------------ ---------- -----------
<S> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net appreciation
(depreciation) in fair
value of investments $ 935,700 642,262 1,314,276 196,638
Interest and dividends -- 499,116 587,642 306,286
----------- ---------- ---------- ----------
935,700 1,141,378 1,901,918 502,924
----------- ---------- ---------- ----------
Contributions:
Participants 285,115 458,140 774,872 563,096
Employer - matching 105,108 171,357 297,602 187,471
----------- ---------- ---------- ----------
Total additions 1,325,923 1,770,875 2,974,392 1,253,491
Deductions from net assets
attributed to:
Distributions to and
withdrawals by participants (110,901) (549,793) (632,419) (166,375)
Administrative and other expenses (1,138) (7,869) (4,385) (1,056)
----------- ---------- ---------- ----------
Total deductions (112,039) (557,662) (636,804) (167,431)
----------- ---------- ---------- ----------
Interfund transfers, including loan
issuances and repayments (396,978) (451,279) (515,712) 434,037
----------- ---------- ---------- ----------
Net increase (decrease) 816,906 761,934 1,821,876 1,520,097
Net assets available for plan
benefits:
Beginning of year 1,663,640 5,276,937 7,372,695 1,804,049
----------- ---------- ---------- ----------
End of year $ 2,480,546 6,038,871 9,194,571 3,324,146
=========== ========== ========== ==========
FIDELITY FIDELITY
FIDELITY FIDELITY STOCK GLOBAL
GROWTH & INTERMEDIATE SELECTOR BALANCED
INCOME FUND BOND FUND FUND FUND
----------- ------------ ---------- --------
Additions to net assets attributed to:
Investment income:
Net appreciation
(depreciation) in fair
value of investments 1,605,326 11,403 211,042 32,986
Interest and dividends 412,957 72,561 251,178 6,840
---------- ---------- ---------- --------
2,018,283 83,964 462,220 39,826
---------- ---------- ---------- --------
Contributions:
Participants 926,003 210,696 369,212 41,416
Employer - matching 319,998 74,157 114,084 15,786
---------- ---------- ---------- --------
Total additions 3,264,284 368,817 945,516 97,028
Deductions from net assets
attributed to:
Distributions to and
withdrawals by participants (510,473) (72,458) (166,853) (46,614)
Administrative and other expenses (7,072) (3,669) (841) (174)
---------- ---------- ---------- --------
Total deductions (517,545) (76,127) (167,694) (46,788)
---------- ---------- ---------- --------
Interfund transfers, including loan
issuances and repayments 142,068 213,483 (110,494) (203,334)
---------- ---------- ---------- --------
Net increase (decrease) 2,888,807 506,173 667,328 (153,094)
Net assets available for plan
benefits:
Beginning of year 6,156,454 1,137,031 1,484,997 375,479
---------- ---------- ---------- --------
End of year 9,045,261 1,643,204 2,152,325 222,385
========== ========== ========== ========
</TABLE>
(Continued)
12
<PAGE>
DEL WEBB CORPORATION
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
YEAR ENDED DECEMBER 31, 1997:
<TABLE>
<CAPTION>
FIDELITY
SPARTAN RETIREMENT PBHG JANUS
U.S. EQUITY MONEY GROWTH MERCURY
INDEX FUND MARKET FUND FUND FUND
----------- ---------- -------- --------
<S> <C> <C> <C> <C>
Additions to net Corporate
attributed to:
Investment income:
Net appreciation
(depreciation) in fair
value of investments $ 398,105 -- 2,219 (8,651)
Interest and dividends 39,508 341,311 -- 11,025
----------- ---------- -------- --------
437,613 341,311 2,219 2,374
----------- ---------- -------- --------
Contributions:
Participants 222,895 528,213 43,430 28,436
Employer - matching 98,290 199,424 9,841 5,804
----------- ---------- -------- --------
Total additions 758,798 1,068,948 55,490 36,614
Deductions from net assets
attributed to:
Distributions to and
withdrawals by participants (82,097) (885,314) (68) --
Administrative and other
expenses (1,023) (22,832) (23) (8)
----------- ---------- -------- --------
Total deductions (83,120) (908,146) (91) (8)
----------- ---------- -------- --------
Interfund transfers, including loan
issuances and repayments 485,561 (484,589) 100,022 68,349
----------- ---------- -------- --------
Net increase
(decrease) 1,161,239 (323,787) 155,421 104,955
Net assets available for plan
benefits:
Beginning of year 910,257 6,468,564 -- --
----------- ---------- -------- --------
End of year $ 2,071,496 6,144,777 155,421 104,955
=========== ========== ======== ========
MARSHALL &
ILSLEY
JAMES MONEY
WORLDWIDE MARKET PARTICIPANT CHANGE IN
FUND FUND LOANS RECEIVABLES TOTAL
-------- -------- -------- ----------- -----------
Additions to net assets attributed
to:
Investment income:
Net appreciation
(depreciation) in fair
value of investments (29,116) -- -- -- 5,312,193
Interest and dividends 43,881 28,343 46,432 -- 2,647,079
-------- -------- -------- --------- -----------
14,765 28,343 46,432 -- 7,959,272
-------- -------- -------- --------- -----------
Contributions:
Participants 117,761 33,532 -- 25,869 4,628,686
Employer - matching 28,756 11,809 -- 9,114 1,648,599
-------- -------- -------- --------- -----------
Total additions 161,282 73,684 46,432 34,983 14,236,557
Deductions from net assets
attributed to:
Distributions to and
withdrawals by participants (88,696) -- (80,706) -- (3,392,768)
Administrative and other
expenses (43) (2,541) -- -- (52,673)
-------- -------- -------- --------- -----------
Total deductions (88,739) (2,541) (80,706) -- (3,445,441)
-------- -------- -------- --------- -----------
Interfund transfers, including loan
issuances and repayments 566,042 -- 152,824 -- --
-------- -------- -------- --------- -----------
Net increase
(decrease) 638,586 71,142 118,550 34,983 10,791,116
Net assets available for plan
benefits:
Beginning of year -- 505,231 867,995 152,624 34,175,953
-------- -------- -------- --------- -----------
End of year 638,586 576,373 986,545 187,607 44,967,069
======== ======== ======== ========= ===========
</TABLE>
(Continued)
13
<PAGE>
DEL WEBB CORPORATION
RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(5) PARTICIPANT DATA
The number of participants in each investment fund at December 31, 1998 and
1997 was as follows:
1998 1997
----- -----
Del Webb Corporate Fund 888 904
Fidelity Puritan Fund 631 624
Fidelity Magellan Fund 1,034 951
Fidelity Contra Fund 560 521
Fidelity Growth & Income Fund 979 890
Fidelity Intermediate Bond Fund 368 342
Fidelity Stock Selector Fund 419 398
Fidelity Global Balanced Fund 123 148
Spartan U.S. Equity Index Fund 459 360
Fidelity Retirement Money Market Fund 1,103 1,154
PBHG Emerging Growth Fund 133 79
Janus Mercury Fund 194 57
Janus Worldwide Fund 326 193
===== =====
(6) FEDERAL INCOME TAXES
The Plan has received a determination letter dated June 5, 1996 from the
Internal Revenue Service which stated that the Plan and its underlying trust
qualify under the applicable provisions of the Internal Revenue Code and,
therefore, are exempt from federal income taxes. There have been no
amendments to the Plan subsequent to the determination letter that would
effect the Plan's tax exempt status, and in the opinion of the Plan
administrator, the Plan and its underlying trust have operated within the
terms of the Plan and remain qualified under the applicable provisions of
the Internal Revenue Code.
14
<PAGE>
SCHEDULE 1
DEL WEBB CORPORATION
RETIREMENT SAVINGS PLAN
EIN: 86-0077724
PLAN NUMBER: 041
Line 27a - Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E
- -------- --------------------- -------------------------------------------------- ------------ ------------
IDENTITY OF ISSUER, DESCRIPTION OF INVESTMENT, INCLUDING
BORROWER, LESSOR MATURITY DATE, RATE OF INTEREST, CURRENT
OR SIMILAR PARTY COLLATERAL, PAR OR MATURITY VALUE COST VALUE
--------------------- -------------------------------------------------- ------------ ------------
<S> <C> <C> <C> <C>
* Del Webb Corporation Del Webb Corporate Fund, 95,343 shares $ 1,720,169 2,691,333
* Fidelity Investments Fidelity Puritan Fund, 336,148 units 5,660,474 6,746,489
* Fidelity Investments Fidelity Magellan Fund, 106,274 units 8,565,694 12,840,070
* Fidelity Investments Fidelity Contra Fund, 76,778 units 3,560,534 4,360,226
* Fidelity Investments Fidelity Growth & Income Fund, 250,453 units 7,891,330 11,480,770
* Fidelity Investments Fidelity Intermediate Bond Fund, 193,352 units 1,971,138 1,985,720
* Fidelity Investments Fidelity Stock Selector Fund, 87,838 units 2,206,826 2,521,841
* Fidelity Investments Fidelity Global Balanced Fund, 11,211 units 145,559 189,688
* Fidelity Investments Spartan U.S. Equity Index Fund, 85,140 units 2,736,956 3,742,759
* Fidelity Investments Fidelity Retirement Money Market Fund,
6,569,156 units 6,569,156 6,569,156
PBHG PBHG Emerging Growth Fund, 9,462 units 212,583 226,610
Janus Janus Mercury Fund, 37,648 units 786,872 907,700
Janus Janus Worldwide Fund, 26,712 units 1,120,554 1,265,082
* Marshall & Ilsley Marshall & Ilsley Money Market Fund, 719,132 units 719,132 719,132
* Participant loans Interest rates based on average of 1 year
certificate of deposit rates averaged monthly -- 1,025,641
------------ ------------
$ 43,866,977 $ 57,272,217
============ ============
</TABLE>
* Party in interest
See accompanying independent auditors' report.
15
<PAGE>
DEL WEBB CORPORATION
RETIREMENT SAVINGS PLAN
EIN: 86-0077724
PLAN NUMBER: 041
Line 27d - Schedule of Reportable Transactions
Year ended December 31, 1998
SERIES TRANSACTIONS, WHEN AGGREGATED, INVOLVING AN AMOUNT IN EXCESS OF FIVE
PERCENT OF THE CURRENT VALUE OF PLAN ASSETS
COLUMN A COLUMN B COLUMN C COLUMN D
- -------------------- ----------------------------- ----------- ----------
TOTAL TOTAL
DESCRIPTION OF ASSET DOLLAR DOLLAR
IDENTITY OF (INCLUDE INTEREST RATE AND VALUE OF VALUE
Party Involved MATURITY IN CASE OF LOAN) PURCHASES OF SALES
- -------------------- ----------------------------- ----------- ----------
Fidelity Investments Puritan Fund, 153 purchases $ 1,882,186 --
Fidelity Investments Puritan Fund, 126 sales -- 1,466,238
Fidelity Investments Magellan Fund, 178 purchases 2,434,379 --
Fidelity Investments Magellan Fund, 150 sales -- 1,389,506
Fidelity Investments Contra Fund, 150 purchases 1,627,107 --
Fidelity Investments Contra Fund, 118 sales -- 1,336,695
Fidelity Investments Growth & Income Fund, 188
purchases 3,322,909 --
Fidelity Investments Growth & Income Fund, 145
sales -- 2,794,139
Fidelity Investments Retirement Money Market Fund,
176 purchases 4,147,582 --
Fidelity Investments Retirement Money Market Fund,
172 sales -- 3,723,202
COLUMN E COLUMN F COLUMN G COLUMN H COLUMN I
- -------- ------------ --------- ------------- ---------
EXPENSES CURRENT VALUE
INCURRED OF ASSETS ON
LEASE WITH COST OF TRANSACTION NET GAIN
RENTAL TRANSACTIONS ASSET DATE OR (LOSS)
- -------- ------------ --------- ------------- ---------
-- -- 1,882,186 1,882,186 --
-- -- 1,281,784 1,466,238 184,454
-- -- 2,434,379 2,434,379 --
-- -- 1,115,403 1,389,506 274,103
-- -- 1,627,107 1,627,107 --
-- -- 1,142,679 1,336,695 194,016
-- -- 3,322,909 3,322,909 --
-- -- 2,032,821 2,794,139 761,318
-- -- 4,147,582 4,147,582 --
-- -- 3,723,202 3,723,202 --
See accompanying independent auditors' report.
16
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the Del Webb Corporation Retirement
Savings Plan) have duly caused this annual report to be signed on its behalf by
the undersigned hereunto duly authorized.
DEL WEBB CORPORATION
RETIREMENT SAVINGS PLAN
By /s/ Lynn Schuttenberg
-------------------------------------
Name: Lynn Schuttenberg
Title: Chairman of Benefits
Advisory Committee
Dated: June 29, 1999
17
<PAGE>
INDEX TO EXHIBITS
Page in Sequential
Numbering System in
Manually Signed
Exhibit Original on Which
Number Description Exhibits May Be Found
- ------ ----------- ---------------------
23 Consent of KPMG LLP
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The Board of Directors
Del Webb Corporation:
We consent to incorporation by reference in the Registration Statement No.
33-6564 on Form S-8 of Del Webb Corporation of our report dated May 27, 1999,
relating to the statements of net assets available for plan benefits of the Del
Webb Corporation Retirement Savings Plan as of December 31, 1998 and 1997, and
the related statements of changes in net assets available for plan benefits for
the years then ended, and all related schedules, which report appears in the
December 31, 1998 annual Report on Form 11-K of the Del Webb Corporation
Retirement Savings Plan.
KPMG LLP
Phoenix, Arizona
June 25, 1999
