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Previous: DEL WEBB CORP, 11-K, 1999-06-29 |
Next: CBS CORP, 11-K, 1999-06-29 |
<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-1004
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1998
Commission File Number 1-977
CBS EMPLOYEE INVESTMENT FUND
(Full title of the Plan)
CBS CORPORATION
51 West 52nd Street
New York, New York 10019
(Name of issuer of the securities held pursuant to the Plan
and the address of its principal executive office)
<PAGE> 2
CBS EMPLOYEE INVESTMENT FUND
FINANCIAL STATEMENTS AS OF DECEMBER 31, 1998
AND 1997, AND SCHEDULES AS OF DECEMBER 31, 1998
(WITH INDEPENDENT AUDITORS' REPORT THEREON)
<PAGE> 3
CBS EMPLOYEE INVESTMENT FUND
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Independent Auditors' Report 1
FINANCIAL STATEMENTS:
Statements Of Net Assets Available For Benefits With Fund Information
As of December 31, 1998 and 1997 2-3
Statements Of Changes In Net Assets Available For Benefits With Fund Information
For the years ended December 31, 1998 and 1997 4-6
Notes to Financial Statements 7-16
SUPPLEMENTAL SCHEDULES:
Item 27a - Schedule of Assets Held for Investment Purposes
As of December 31, 1998 S1-S12
Item 27d - Schedule of Reportable Transactions
For the year ended December 31, 1998 S13-S14
</TABLE>
All other schedules required by the Department of Labor's Rules and Regulations
for Reporting and Disclosure under the Employee Retirement Income Security Act
of 1974 (ERISA) have been omitted because there is no information to report.
<PAGE> 4
INDEPENDENT AUDITORS' REPORT
To the Plan Administrator of the
CBS Employee Investment Fund
We have audited the accompanying statements of net assets available for benefits
with fund information of the CBS Employee Investment Fund ("the Plan") as of
December 31, 1998 and 1997, and the related statements of changes in net assets
available for benefits with fund information 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 as of
December 31, 1998 and 1997, and the changes in net assets available for benefits
for the years ended December 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 supplemental schedules of assets held for
investment purposes and reportable transactions are presented for the purpose of
additional analysis and are not a required part of the basic financial
statements, but are supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. The supplemental schedules have been
subjected to the auditing procedures applied in the audit of the basic financial
statements for the year ended December 31, 1998, and, in our opinion, are fairly
stated in all material respects in relation to the basic financial statements
taken as a whole.
June 4, 1999 /s/ MITCHELL & TITUS, LLP
<PAGE> 5
CBS EMPLOYEE INVESTMENT FUND
STATEMENT OF NET ASSETS AVAILABLE FOR
BENEFITS WITH FUND INFORMATION
As of December 31, 1998
(in thousands)
<TABLE>
<CAPTION>
S&P Medium Short
500 Stable Company Long Term Term Term
Index Value Stock Life Cycle Life Cycle Life Cycle
Fund Fund Fund Fund Fund Fund
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
ASSETS
------
Cash $ -- $ -- $ -- $ -- $ -- $ --
Investments, at fair value 468,061 6,281 105,769 10,534 56,423 6,744
Investments, at contract value -- 434,357 -- -- -- --
Loans to participants -- -- -- -- -- --
Interest and dividends receivable -- 104 12 -- -- --
Receivable from brokers for
unsettled trades -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Total assets 468,061 440,742 105,781 10,534 56,423 6,744
---------- ---------- ---------- ---------- ---------- ----------
LIABILITIES
-----------
Payable to brokers for
unsettled trades 29 119 -- 10 2 4
Other liabilities 6 63 -- 1 3 1
---------- ---------- ---------- ---------- ---------- ----------
Total liabilities 35 182 -- 11 5 5
---------- ---------- ---------- ---------- ---------- ----------
Net assets available
for benefits $ 468,026 $ 440,560 $ 105,781 $ 10,523 $ 56,418 $ 6,739
========== ========== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
Value Int'l
U.S. Small Cap. Self Equity Loan
Equity U.S. Equity Directed Index Provision
Fund Fund Account Fund Fund Total
---- ---- ------- ---- ---- -----
<S> <C> <C> <C> <C> <C> <C>
ASSETS
------
Cash $ -- $ 1,425 $ -- $ -- $ -- $ 1,425
Investments, at fair value 24,126 15,616 10,859 5,567 6 709,986
Investments, at contract value -- -- -- -- -- 434,357
Loans to participants -- -- -- -- 16,079 16,079
Interest and dividends receivable -- -- -- -- -- 116
Receivable from brokers for
unsettled trades -- -- 814 -- -- 814
---------- ---------- ---------- ---------- ---------- ----------
Total assets 24,126 17,041 11,673 5,567 16,085 1,162,777
---------- ---------- ---------- ---------- ---------- ----------
LIABILITIES
-----------
Payable to brokers for
unsettled trades 31 1,755 1,043 2 -- 2,995
Other liabilities -- -- 108 -- 2 184
---------- ---------- ---------- ---------- ---------- ----------
Total liabilities 31 1,755 1,151 2 2 3,179
---------- ---------- ---------- ---------- ---------- ----------
Net assets available
for benefits $ 24,095 $ 15,286 $ 10,522 $ 5,565 $ 16,083 $1,159,598
========== ========== ========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
-2-
<PAGE> 6
CBS EMPLOYEE INVESTMENT FUND
STATEMENT OF NET ASSETS AVAILABLE FOR
BENEFITS WITH FUND INFORMATION
As of December 31, 1997
(in thousands)
<TABLE>
<CAPTION>
Stable Company Loan
Equity Value Stock Balanced Provision
Fund A Fund Fund Fund E Fund Total
------ ---- ---- ------ ---- -----
<S> <C> <C> <C> <C> <C> <C>
ASSETS
------
Cash $ -- $ -- $ -- $ 48 $ -- $ 48
Investments, at fair value 390,411 3,205 51,621 49,928 6 495,171
Investments, at contract value -- 399,099 -- -- -- 399,099
Loans to participants -- -- -- -- 8,642 8,642
Interest and dividends receivable 443 34 15 65 -- 557
Receivable from brokers for unsettled trades -- -- -- 674 -- 674
-------- -------- -------- -------- -------- --------
Total assets 390,854 402,338 51,636 50,715 8,648 904,191
-------- -------- -------- -------- -------- --------
LIABILITIES
-----------
Payable to brokers for unsettled trades -- -- 1,712 173 -- 1,885
Other liabilities 2,424 65 -- -- 3 2,492
-------- -------- -------- -------- -------- --------
Total liabilities 2,424 65 1,712 173 3 4,377
-------- -------- -------- -------- -------- --------
Net assets available for benefits $388,430 $402,273 $ 49,924 $ 50,542 $ 8,645 $899,814
======== ======== ======== ======== ======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
-3-
<PAGE> 7
CBS EMPLOYEE INVESTMENT FUND
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR
BENEFITS WITH FUND INFORMATION
For the year ended December 31, 1998
(in thousands)
<TABLE>
<CAPTION>
S&P Medium Short Value
500 Stable Company Long Term Term Term U.S.
Index Value Stock Life Cycle Life Cycle Life Cycle Equity
Fund Fund Fund Fund Fund Fund Fund
---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Contributions:
Employer $ -- $ -- $ 9,329 $ -- $ -- $ -- $ --
Employee 17,950 10,234 4,414 789 2,653 350 1,987
--------- --------- --------- -------- -------- ------- --------
17,950 10,234 13,743 789 2,653 350 1,987
--------- --------- --------- -------- -------- ------- --------
Investment income:
Dividends 43 -- 139 208 1,675 226 --
Interest 14 27,826 173 1 29 -- --
Net appreciation
(depreciation) of
investments 107,302 -- 9,591 1,108 7,155 493 4,409
--------- --------- --------- -------- -------- ------- --------
Investment income, net 107,359 27,826 9,903 1,317 8,859 719 4,409
--------- --------- --------- -------- -------- ------- --------
Transfers in - Group
W employees 36,915 47,383 30,833 1,198 1,910 745 --
--------- --------- --------- -------- -------- ------- --------
Total additions 162,224 85,443 54,479 3,304 13,422 1,814 6,396
--------- --------- --------- -------- -------- ------- --------
DEDUCTIONS:
Distributions and
withdrawals 27,398 49,748 3,756 219 3,826 85 706
--------- --------- --------- -------- -------- ------- --------
Net increase prior to loans
to participants and
interfund transfers 134,826 35,695 50,723 3,085 9,596 1,729 5,690
Loans to participants (4,273) (3,089) (972) (72) (341) (30) (189)
Loan repayments 2,896 1,996 876 98 291 36 181
Net interfund transfers 334,577 3,685 5,230 7,412 46,872 5,004 18,413
--------- --------- --------- -------- -------- ------- --------
Net increase 468,026 38,287 55,857 10,523 56,418 6,739 24,095
Net assets available for
benefits, beginning of year -- 402,273 49,924 -- -- -- --
--------- --------- --------- -------- -------- ------- --------
Net assets available for
benefits, end of year $ 468,026 $ 440,560 $ 105,781 $ 10,523 $ 56,418 $ 6,739 $ 24,095
========= ========= ========= ======== ======== ======= ========
</TABLE>
-4-
(Continued)
<PAGE> 8
CBS EMPLOYEE INVESTMENT FUND
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR
BENEFITS WITH FUND INCORPORATION
For the year ended December 31, 1998
(in thousands)
<TABLE>
<CAPTION>
Int'l
Small Cap. Self Equity Loan
U.S. Equity Directed Index Equity Balanced Provision
Fund Account Fund Fund A Fund E Fund Total
---- ------- ---- ------ ------ ---- -----
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Contributions:
Employer $ -- $ -- $ -- $ -- $ -- $ -- $ 9,329
Employee 2,111 -- 615 -- -- -- 41,103
-------- ------- ------- --------- -------- -------- ----------
2,111 -- 615 -- -- -- 50,432
-------- ------- ------- --------- -------- -------- ----------
Investment income:
Dividends 398 77 -- -- -- -- 2,766
Interest -- -- 1 -- -- 1,009 29,053
Net appreciation
(depreciation) of
investments (1,420) 1,053 773 -- -- -- 130,464
-------- ------- ------- --------- -------- -------- ----------
Investment income, net (1,022) 1,130 774 -- -- 1,009 162,283
-------- ------- ------- --------- -------- -------- ----------
Transfers in - Group
W employees 9,554 -- 1,380 -- -- 4,606 134,524
-------- ------- ------- --------- -------- -------- ----------
Total additions 10,643 1,130 2,769 -- -- 5,615 347,239
-------- ------- ------- --------- -------- -------- ----------
DEDUCTIONS:
Distributions and
withdrawals 742 59 124 -- -- 792 87,455
-------- ------- ------- --------- -------- -------- ----------
Net increase prior to loans
to participants and
interfund transfers 9,901 1,071 2,645 -- -- 4,823 259,784
Loans to participants (235) -- (103) -- -- 9,304 --
Loan repayments 249 -- 66 -- -- (6,689) --
Net interfund transfers 5,371 9,451 2,957 (388,430) (50,542) -- --
-------- ------- ------- --------- -------- -------- ----------
Net increase (decrease) 15,286 10,522 5,565 (388,430) (50,542) 7,438 259,784
Net assets available for
benefits, beginning of year -- -- -- 388,430 50,542 8,645 899,814
-------- ------- ------- --------- -------- -------- ----------
Net assets available for
benefits, end of year $ 15,286 $10,522 $ 5,565 $ -- $ -- $ 16,083 $1,159,598
======== ======= ======= ========= ======== ======== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements
-5-
<PAGE> 9
CBS EMPLOYEE INVESTMENT FUND
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR
BENEFITS WITH FUND INFORMATION
For the year ended December 31, 1997
(in thousands)
<TABLE>
<CAPTION>
Stable Company Loan
Equity Value Stock Balanced Provision
Fund A Fund Fund Fund E Fund Total
------ ---- ---- ------ ---- -----
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Contributions:
Employer $ -- $ -- $ 8,915 $ -- $ -- $ 8,915
Employee 14,860 8,828 1,305 3,098 -- 28,091
--------- --------- -------- -------- -------- --------
14,860 8,828 10,220 3,098 -- 37,006
--------- --------- -------- -------- -------- --------
Investment income:
Dividends 3,921 -- 144 504 -- 4,569
Interest 750 28,965 67 993 586 31,361
Net appreciation of investments 81,172 -- 9,439 6,803 -- 97,414
Other 2 -- -- -- 177 179
--------- --------- -------- -------- -------- --------
Investment income, net 85,845 28,965 9,650 8,300 763 133,523
--------- --------- -------- -------- -------- --------
Total additions 100,705 37,793 19,870 11,398 763 170,529
--------- --------- -------- -------- -------- --------
DEDUCTIONS:
Distributions and withdrawals 27,241 47,288 980 2,527 952 78,988
--------- --------- -------- -------- -------- --------
Net increase (decrease) prior to loans to
participants and interfund transfers 73,464 (9,495) 18,890 8,871 (189) 91,541
Loans to participants (2,413) (1,649) (253) (259) 4,574 --
Loan repayments 1,990 1,224 73 227 (3,514) --
Net interfund transfers (20,557) (13,678) 31,214 3,021 -- --
--------- --------- -------- -------- -------- --------
Net Increase (Decrease) 52,484 (23,598) 49,924 11,860 871 91,541
Net assets available for benefits, beginning of year 335,946 425,871 -- 38,682 7,774 808,273
--------- --------- -------- -------- -------- --------
Net assets available for benefits, end of year $ 388,430 $ 402,273 $ 49,924 $ 50,542 $ 8,645 $899,814
========= ========= ======== ======== ======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
-6-
<PAGE> 10
CBS EMPLOYEE INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
NOTE 1. DESCRIPTION OF THE PLAN:
The CBS Employee Investment Fund ("the Plan") was established
by CBS Broadcasting Inc. (the "Company" and the "Plan
Administrator") (formerly CBS, Inc.) a wholly owned subsidiary
of CBS Corporation (the "Corporation") (formerly conducted
business as Westinghouse Electric Corporation). The Plan was
established to provide a convenient way for employees of the
Company to save and invest for retirement. The Plan is
considered a defined contribution type of profit sharing plan
and, is subject to the provisions of the Employee Retirement
Income Security Act of 1974 (ERISA).
Beginning January 1, 1998 the Plan's eligibility requirements
and investment options were modified as outlined below.
Participants should refer to the Plan document for a complete
description of the Plan.
Eligibility
All employees of the Company and certain of its subsidiaries
in the United States, as well as U.S. citizens abroad, who are
employed on a full-time basis in executive, non-union office
and hourly positions, are eligible to participate in the Plan
immediately. Employees working on a part-time basis are
eligible to participate in the Plan upon the completion of one
year of employment, if the employee worked at least 1,000
hours in that year. Other groups designated by the Company or
by the terms of a collective bargaining agreement are also
eligible to participate in the Plan.
Investments
Beginning January 1, 1998, the Plan was modified to provide
for ten investment options, which are: Stable Value Fund
(previously Fund B), Short-Term Life Cycle Fund, Medium-Term
Life Cycle Fund, Long Term Life Cycle Fund, S&P 500 Index
Fund, Value U.S. Equity Fund, Small Cap U.S. Equity Fund,
International Equity Index Fund, Company Stock Fund and
Self-Directed Account.
-7-
<PAGE> 11
CBS EMPLOYEE INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
NOTE 1. DESCRIPTION OF THE PLAN: (Continued)
Additionally the Plan maintains a Loan Provision Fund relating
to outstanding participant loans as discussed below.
Balances at January 1, 1998 in Equity Fund A and Balanced Fund
E were transferred to the S&P 500 Index Fund and the Medium
Term Life Cycle Fund, respectively, whereas the Fund B (Stable
Value Fund) and the Company Stock Fund remained as investment
options. Subsequent to the fund transfers, employees were able
to transfer balances among any of the ten fund options (in
increments of 1%, rather than 5% as in years prior to
January 1, 1998).
The Self-Directed Account allows Plan participants to
establish an investment account with the trustee and gain
access to an expanded number of investment options. A
Self-Directed Account can be established if the participant
has a Plan balance of at least $5,000 and the minimum initial
investment option is $2,500. Additional transfers into the
Self-Directed Account must be in $1,000 increments. Fees are
charged on transactions in the Self-Directed Account and are
charged directly against the participant's Self-Directed
Account balance.
On January 2, 1998, Group W employees participating in the
Westinghouse Saving Plan became participants in the Plan, and
accordingly, balances aggregating $134,524,000 were
transferred into the Plan. Group W employees are defined as
certain employees of the Corporation who were formerly
Westinghouse Electric Corporation employees engaged in the
business of radio, television or cable broadcasting, or who
provided management services in a position relocated to CBS
Corporation headquarters
The Plan allows employees to request loans from their account
without incurring a taxable event. Participants may request
loans for a minimum of $1,000, but not to exceed the lesser of
$50,000 (reduced by the highest outstanding balance of any
loan from the Plan during the prior twelve months) or one half
of the market value of the vested portions of all the
participant's separate accounts on the date of the loan. No
more than one loan may be made per year, and not more than two
loans may be outstanding. When a participant has two loans,
one of the outstanding loans must be for the purpose of
purchasing a primary residence.
-8-
<PAGE> 12
CBS EMPLOYEE INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
NOTE 1. DESCRIPTION OF THE PLAN: (Continued)
Interest on participants' loans are based on the latest
blended rate for the Stable Value Fund, rounded to the nearest
quarter percentage point, as of the valuation date of the
calendar quarter preceding the loan's effective date. The
loans must be repaid within five years, with the exception of
a loan used to acquire a primary residence, for which
repayment is not to exceed fifteen years. In the event of a
default on a loan payment, all remaining payments are
considered immediately due and payable. The defaulted portion
of any outstanding loan including accrued interest is offset
against the remaining balance in the participant's account.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES:
Basis of Accounting
The financial statements of the Plan have been prepared under
the accrual method of accounting.
Investment Valuation
An individual participant's interest in the funds of the Plan
is represented by the dollar value of the participant's
individual account.
Investments, except for certain guaranteed annuity and
investment contracts, are stated at fair value. Investments in
securities traded on a national securities exchange are valued
at the closing sales price on the last business day of the
year; securities traded in the over-the-counter market and
listed securities for which no sale was reported on that date
are valued at the last reported bid price; participations in
pooled trust funds are stated at the Trust's beneficial
interest in the aggregate fair value of assets held by the
particular fund as reported by the Plan's fund manager. The
carrying value of the Plan's investment in the guaranteed
annuity contracts and guaranteed investment contracts is cost
plus accrued interest.
Investment Transactions and Investment Income
Purchases and sales of securities are reflected on a
trade-date basis. Gain or loss on sales of securities is based
on average cost.
Dividend income is recorded on the ex-dividend date. Income
from other investments is recorded as earned on an accrual
basis.
-9-
<PAGE> 13
CBS EMPLOYEE INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES: (Continued)
The net appreciation (depreciation) of investments, consists
of the realized gains and losses and the unrealized
appreciation (depreciation) on those investments, as reflected
in the Statement Of Changes In Net Assets Available for
Benefits With Fund Information.
Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires the Plan
Administrator to make estimates and assumptions that affect
the reported amounts and disclosures. Accordingly, actual
results could differ from those estimates.
Payment of Benefits
Benefits are recorded when paid.
Reclassification
Certain 1997 balances have been reclassified to conform to
1998 presentation.
NOTE 3. CONTRIBUTIONS:
Contributions from participants and the Company are recorded
in the period the Company makes payroll deductions from
participants. Employee participation in the Plan is voluntary.
Employee contributions can be between 1% and 15% of base
annual salary on a before or after-tax basis. Employees may
contribute, on a before-tax basis, up to a maximum of $10,000
in 1998 ($9,500 in 1997). Participants may also make
additional voluntary lump sum contributions on an after-tax
basis. Employee contributions are directed by participants to
any combination of funds, as designated by the employee.
Subsequent to January 1, 1998, such allocations to the funds
may be made in 1 percentage point increments (previously .5%
increments).
Effective January 1, 1998, the Company match contribution
changed from an automatic to a performance based discretionary
match on employees' before-tax contributions up to a maximum
of 5% of employee contributions. Employer contributions are
initially directed to the Company Stock Fund. Employees can
subsequently transfer the employer contribution, in increments
of 1% to any of the fund options.
Company contributions become vested at the rate of 33-1/3%
per annum until fully vested after three years of employment.
-10-
<PAGE> 14
CBS EMPLOYEE INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
NOTE 3. CONTRIBUTIONS: (Continued)
The overall maximum annual contribution to the Plan for a
participant, including before-tax, after-tax and Company
matching contributions is $30,000 or 25% of an employee's base
pay.
All employer and employee contributions are subject to
specified limitations as described in ERISA and other
applicable federal and state laws.
NOTE 4. DISTRIBUTIONS:
Upon termination, participants have the option of receiving
the balance in their accounts in cash or monthly payments over
a period of time not to exceed 240 months. For terminated
participants who have an account balance in excess of $5,000
an option is available to leave their account balance in the
Plan and have it distributed at any valuation date provided
however, that payments commence no later than April 1, of the
year following the year in which they reach age 70-1/2.
Terminated participants with account balances of less than
$5,000 receive mandatory lumpsum payment.
Non-vested employer contributions are forfeited upon
termination and are used to reduce future employer
contributions. At December 31, 1998 and 1997, forfeited
nonvested amounts were $152,000 and $58,000, respectively.
Withdrawals of a participant's after tax contributions are
permitted at any time, but are limited to two withdrawals per
calendar year.
Withdrawals of a participant's tax-deferred contributions are
permitted after the participant has reached age 59-1/2, or
before reaching such age in the event of hardship, but are
limited to two withdrawals per calendar year.
The Tax Reform Act of 1986 imposed a 10% penalty on certain
withdrawals and distributions made before the participant
reaches age 59-1/2.
-11-
<PAGE> 15
CBS EMPLOYEE INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
NOTE 5. INVESTMENTS:
Investments held by the Plan at December 31, 1998 and 1997 are
summarized by their fair and contract values in the following
table:
<TABLE>
<CAPTION>
LONG MEDIUM SHORT SMALL
S&P TERM TERM TERM VALUE CAP.
500 STABLE COMPANY LIFE LIFE LIFE U.S. U.S.
INDEX VALUE STOCK CYCLE CYCLE CYCLE EQUITY EQUITY
FUND FUND FUND FUND FUND FUND FUND FUND
------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1998: (in thousands)
Common stocks $ -- $ -- $ 99,963(B) $ -- $ -- $ -- $ -- $ --
Value of interest in
unallocated insurance
contracts -- 434,357(A)(B) -- -- -- -- -- --
Common Collective Trust 468,061(B) 6,281 5,806 -- -- -- 24,126 --
Registered investment
companies -- -- -- 10,534 56,423 6,744 -- 15,616
Participants loans -- -- -- -- -- -- -- --
-------- -------- -------- ------- ------- ------- ------- -------
$468,061 $440,638 $105,769 $10,534 $56,423 $ 6,744 $24,126 $15,616
======== ======== ======== ======= ======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
INT'L
SELF EQUITY LOAN
DIRECTED INDEX PROVISION
ACCOUNT FUND FUND TOTAL
------- ---- ---- -----
<S> <C> <C> <C> <C>
1998: (in thousands)
Common stocks $ 7,000 $ -- $ -- $ 106,963
Value of interest in
unallocated insurance
contracts -- -- -- 434,357
Common Collective Trust 181 5,567 6 510,028
Registered investment
companies 3,678 -- -- 92,995
Participants loans -- -- 16,079 16,079
------- ------- ---------- ----------
$10,859 $ 5,567 $ 16,085 $1,160,422
======= ======= ========== ==========
</TABLE>
<TABLE>
<CAPTION>
STABLE COMPANY LOAN
EQUITY VALUE STOCK BALANCED PROVISION
FUND A FUND FUND FUND E FUND TOTAL
------ ---- ---- ------ ---- -----
<S> <C> <C> <C> <C> <C> <C>
1997: (in thousands)
Common stocks $ -- $ -- $48,081(B) $ -- $ -- $ 48,081
Value of interest
unallocated insurance
contracts -- 399,099(A)(B) -- -- -- 399,099
Common Collective Trust 390,411(B) 3,205 3,540 49,928(B) 6 447,090
Participant loans -- -- -- -- 8,642 8,642
-------- -------- ------- ------- -------- --------
$390,411 $402,304 $51,621 $49,928 $ 8,648 $902,912
======== ======== ======= ======= ======== ========
</TABLE>
(A) Represents contract value.
(B) Represents 5 percent or more of the Plan's net assets
-12-
<PAGE> 16
CBS EMPLOYEE INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
NOTE 5. INVESTMENTS: (Continued)
For the years ended December 31, 1998 and 1997, the net
appreciation (depreciation) in the fair value of investments
is summarized as follows:
<TABLE>
<CAPTION>
S&P Medium Short Value
500 Company Long Term Term Term U.S.
Index Stock Life Cycle Life Cycle Life Cycle Equity
Fund Fund Fund Fund Fund Fund
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
1998: (in thousands)
Common stocks $ -- $9,065 $ -- $ -- $ -- $ --
Common Collective Trust 107,302 526 -- -- -- 4,409
Registered Investment
Companies -- -- 1,108 7,155 493 --
-------- ------ ------ ------ ------ -------
$107,302 $9,591 $1,108 $7,155 $ 493 $ 4,409
======== ====== ====== ====== ====== =======
</TABLE>
<TABLE>
<CAPTION>
Int'l
Small Cap. Self Equity
U.S. Equity Directed Index
Fund Account Fund Total
---- ------- ---- -----
<S> <C> <C> <C> <C>
1998: (in thousands)
Common stocks -- $ 679 $ -- $ 9,744
Common Collective Trust -- 17 773 113,027
Registered Investment
Companies ($1,420) 357 -- 7,693
------- ------ -------- --------
($1,420) $1,053 $ 773 $130,464
======= ====== ======== ========
</TABLE>
<TABLE>
<CAPTION>
Company
Equity Stock Balanced
Fund A Fund Fund E Total
------ ---- ------ -----
<S> <C> <C> <C> <C>
1997: (in thousands)
Common stocks $ -- $8,792 $ -- $ 8,792
Common collective Trust 81,172 647 6,803 88,622
-------- ------ -------- --------
$ 81,172 $9,439 $ 6,803 $ 97,414
======== ====== ======== ========
</TABLE>
-13-
<PAGE> 17
CBS EMPLOYEE INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
NOTE 5. INVESTMENTS: (Continued)
The Plan has a number of benefit-responsive investment
contracts with certain insurance companies. At December 31,
1998 and 1997, the Plan held $434 million and $399 million,
respectively, of unallocated insurance contracts. These
contracts are recorded at their contract values. The relevant
contract and fair value information is summarized below:
<TABLE>
<CAPTION>
1998: (in thousands)
Effective Contract
Investment Contracts Date Rate Contract Value Fair value
-------------------- ---- ---- -------------- ----------
<S> <C> <C> <C> <C>
Aetna Life (MBIA Insured) 04/01/98 6.50% $ 89,130 $ 89,906
Allstate Life Ins. Co. 08/16/96 6.67% 10,534 10,793
Allstate Life Ins. Co. 01/08/98 5.99% 54,254 54,923
Jackson National Life 08/23/96 6.46% 11,536 11,563
John Hancock Mutual Life 11/28/95 6.00% 27,772 27,867
John Hancock Mutual Life 06/10/97 4.33% 15,050 15,176
John Hancock Mutual Life 03/05/98 5.35% 26,218 26,511
Monumental Life Ins. Co. 12/01/98 6.61% 60,696 62,370
New York Life Ins. Co. 07/01/92 7.80% 13,567 13,635
New York Life Ins. Co. 07/01/94 7.25% 52,350 52,910
New York Life Ins. Co. 09/08/94 7.35% 7,900 8,436
Prudential (MBIA Insured) 04/01/98 6.26% 35,225 36,079
State Street Bank and Trust 08/19/98 5.33% 30,125 30,511
-------------- ---------------
$ 434,357 $ 440,680
============== ===============
<CAPTION>
1997: (in thousands)
Effective Contract
Investment Contracts Date Rate Contract Value Fair value
-------------------- ---- ---- -------------- ----------
<S> <C> <C> <C> <C>
Aetna Life (MBIA Insured) 10/01/96 6.81% $ 83,549 $ 83,681
Allstate Life Ins. Co. 08/16/96 6.67% 10,532 10,693
Bankers Trust 06/19/91 9.00% 7,624 7,624
John Hancock Mutual Life 11/28/95 6.15% 55,582 55,526
John Hancock Mutual Life 06/10/97 5.71% 11,060 11,061
New York Life Ins. Co. 07/01/92 8.00% 54,013 54,800
New York Life Ins. Co. 07/01/94 7.45% 64,422 66,213
New York Life Ins. Co. 09/08/94 7.55% 15,329 15,793
Jackson National Life 08/23/96 6.46% 10,837 10,900
Prudential (MBIA Insured) 05/16/97 6.63% 33,081 33,104
Peoples Security Life 03/27/97 6.62% 53,070 54,382
-------------- ---------------
$ 399,099 $ 403,777
============== ===============
</TABLE>
Certain contracts experienced periodic rate resets during the
year. The contract rate is the annual effective yield.
-14-
<PAGE> 18
CBS EMPLOYEE INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
NOTE 6. TAX STATUS:
The Internal Revenue Service has determined and informed the
Company by a letter dated May 13, 1997, that the Plan is
designed in accordance with applicable sections of the
Internal Revenue Code.
Participants will not be subject to income tax on
contributions made on their behalf by the Company nor on the
plan earnings credited to their account until such time as
they withdraw all or any part of their accumulated balance.
In the opinion of the Plan Administrator, the Plan has been
operated in accordance with ERISA and the applicable sections
of the Internal Revenue Code and remains a qualified plan
pursuant thereto.
NOTE 7. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500:
The following is a reconciliation of net assets available for
benefits per the financial statements to Form 5500:
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------------
1998 1997
---- ----
(in thousands)
<S> <C> <C>
Net assets available for benefits per the financial
statements $ 1,159,598 $ 899,814
Amounts allocated to withdrawing participants (1,080) (1,083)
----------------- -----------------
Net assets available for benefits per Form 5500 $ 1,158,518 $ 898,731
================= =================
</TABLE>
The following is a reconciliation of benefits paid to
participants per the financial statements to Form 5500:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
---------------------------------
1998 1997
---- ----
(in thousands)
<S> <C> <C>
Benefits paid to Participants per the financial statements $ 87,455 $ 78,988
Add: Amounts allocated to withdrawing participants
during the year 1,080 1,083
Less: Amounts allocated to withdrawing participants
during the previous year (1,083) --
-------------- ---------------
Benefits paid to participants per Form 5500 $ 87,452 $ 80,071
============== ===============
</TABLE>
Amounts allocated to withdrawing participants are recorded on
Form 5500 for benefit claims that have been processed and
approved for payment prior to December 31 but not yet paid as
of that date.
-15-
<PAGE> 19
CBS EMPLOYEE INVESTMENT FUND
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
NOTE 8. PLAN EXPENSES:
Administrative expenses in the amount of $881,000 are borne by
the Plan.
NOTE 9. PLAN TERMINATION:
The Company has not expressed any intent to terminate the
Plan. However, it is free to do so at any time, subject to the
provisions of ERISA. In the event of termination, participants
will become 100% vested and the net assets of the Plan shall
be allocated among the participants and their respective
beneficiaries of the Plan in the order provided for in ERISA.
NOTE 10. SUBSEQUENT EVENT:
Effective April 1, 1999, the CBS Employee Investment Fund has
added the Infinity Broadcasting Stock Fund (the "Infinity
Stock Fund") as an investment option under the Plan. The
Infinity Stock Fund will invest in the Class A Common Stock of
Infinity Broadcasting Corporation. The addition of the
Infinity Stock Fund allows participants in the Plan to invest
in a fund comprised solely of Infinity Broadcasting
Corporation Class A Common Stock.
-16-
<PAGE> 20
CBS EMPLOYEE INVESTMENT FUND
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
<TABLE>
<CAPTION>
SHARES/
PAR VALUE SECURITY DESCRIPTION COST MARKET VALUE
--------- -------------------- ---- ------------
CORPORATE STOCK - COMMON
- ------------------------
<S> <C> <C> <C>
30.00 LERNOUT & HAUSPIE SPEECH PRO $ 1,656.50 $ 978.75
326.00 DAIMLER CHRYSLER AG ORD 25,180.77 31,316.38
82.00 IRIDIUM WORLD COMM INC 4,999.40 3,244.13
1,000.00 AMR CORP DEL 77,127.35 59,375.00
1,998.00 ATI TECHNOLOGY INC. 21,849.07 22,759.22
25.00 AT&T CORP 1,893.75 1,893.75
560.00 ABERCROMBIE & FITCH CO CL A 40,101.34 39,620.00
308.00 ADVANCED MICRO DEVICES INC 6,211.45 8,932.00
659.00 AMAZON COM INC 93,488.10 211,703.75
5,853.00 AMERICA ONLINE INC DEL 605,674.52 907,946.63
20.00 AMERICAN EXPRESS CO 1,966.50 2,050.00
1,000.00 AMERICAN MEDIA INC CL A 5,294.89 5,562.50
350.00 AMERITRADE HLDG CORP CL A 11,025.00 11,025.00
100.00 APPLIED MATLS INC 3,401.88 4,268.75
100.00 ASCEND COMMUNCATIONS INC 4,946.50 6,575.00
25.00 ASTEC INDS INC 1,436.50 1,390.63
2,000.00 AUDIO BOOK CLUB INC 27,384.22 23,250.00
300.00 AVID TECHNOLOGY INC 9,534.85 7,012.50
1,000.00 AXYS PHARMACIES INC 7,892.44 5,875.00
500.00 BJ SVCS CO 11,810.41 7,812.50
75.00 BMC SOFTWARE INC 3,852.13 3,342.19
20.00 BANK NEW YORK INC 651.50 805.00
39.00 BANKAMERICA CORP NEW 2,000.35 2,344.88
100.00 BANKBOSTON CORP 5,440.25 3,893.75
500.00 BARNES & NOBLE INC 18,362.13 21,250.00
100.00 BED BATH & BEYOND INC 2,346.50 3,412.50
300.00 BELL CDA INTL INC 2,618.55 3,375.00
</TABLE>
-S1-
<PAGE> 21
CBS EMPLOYEE INVESTMENT FUND
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
<TABLE>
<CAPTION>
SHARES/
PAR VALUE SECURITY DESCRIPTION COST MARKET VALUE
--------- -------------------- ---- ------------
<S> <C> <C> <C>
20.00 BELL SOUTH CORP 687.13 997.50
3.00 BERKSHIRE HATHAWAY INC DEL 196,666.25 210,000.00
CLA
27.00 BERKSHIRE HATHAWAY INC DEL B 68,483.23 63,450.00
100.00 BERKSHIRE RLTY INC 992.75 950.00
500.00 BIOMIRA INC 8,209.89 1,547.00
550.00 BOEING CO 21,894.22 17,943.75
4,500.00 BOOKS A MILLION 77,180.61 58,500.00
2,000.00 BOSTON CHICKEN INC 2,312.17 620.00
18.00 BRISTOL MYERS SQUIBB CO 2,413.63 2,408.63
100.00 BUFFETS INC 1,186.50 1,193.75
3,052,291.00 CBS CORP 85,557,062.56 99,962,870.69
250.00 CMGI INC 29,591.54 26,625.00
20.00 CABLEVISION SYS CORP CL A 646.92 1,002.50
100.00 CAMPBELL SOUP CO 5,686.97 5,500.00
1,175.00 CANDIE'S INC 5,953.72 4,406.25
500.00 CAPSTAR BROADCASTING 12,625.34 11,437.50
CORP CL A
43.08 CATERPILLAR INC 2,149.59 1,981.68
91.00 CENDANT CORP 1,028.15 1,757.44
100.00 CENTURY TEL ENTERPRISES INC 5,196.50 6,750.00
252.00 CHANCELLOR MEDIA CORP 8,304.91 12,064.50
100.00 CHASE MANHATTAN CORP NEW 5,904.26 7,100.00
30.00 CHEVRON CORP 2,426.85 2,488.13
2,465.00 CISCO SYS INC 176,255.40 228,782.81
726.00 CITIGROUP INC 34,485.42 36,073.13
500.00 CLEAR CHANNEL COMMUNICATIONS 25,345.97 27,250.00
INC
5.00 CLOROX CO 597.13 584.06
118.62 COCA COLA CO 8,630.44 7,947.81
</TABLE>
-S2-
<PAGE> 22
CBS EMPLOYEE INVESTMENT FUND
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
<TABLE>
<CAPTION>
SHARES/
PAR VALUE SECURITY DESCRIPTION COST MARKET VALUE
--------- -------------------- ---- ------------
<S> <C> <C> <C>
600.00 COMCAST CORP CL A 23,146.75 34,462.50
1,000.00 COMDISCO INC DEL 21,244.31 16,875.00
2,791.06 COMPAQ COMPUTER CORP 85,963.75 117,224.69
250.00 COMPUTER ASSOC INTL INC 9,213.50 10,656.25
2,200.00 CONNECT INC NEW 11,110.15 6,050.00
100.00 CRESCENT REAL ESTATE EQUITIES INC TR TEX RE 3,727.75 2,300.00
975.00 CYBERIAN OUTBOST INC OC 37,290.07 26,812.50
1,000.00 CYPROS PHARMACEUTICAL CORP 3,998.69 3,250.00
6,170.00 DELL COMPUTER CORP 377,829.26 451,566.88
800.00 DETOUR MAGAZINE INC 1,800.00 324.80
1,000.00 DIGITAL COURIER TECH INC 3,062.00 7,125.00
11,369.36 DISNEY WALT CO 397,490.33 341,080.80
33.00 DU PONT E I DE NEMOURS & CO 2,013.13 1,751.06
773.00 EMC CORP MASS 39,211.62 65,705.00
900.00 EARTHWEB INC 64,163.10 34,987.50
39.00 EASTMAN KODAK CO 2,496.25 2,808.00
1,000.00 EGGHEAD.COM INC 25,016.75 20,812.50
67.00 ELAN PLC ADR 4,265.75 4,685.81
100.00 ENRON OIL & GAS CO 1,514.20 1,725.00
100.00 ERICSSON L M TEL CO ADR CL B SEK 10 1,937.98 2,393.75
45.51 EXXON CORP 3,153.20 3,328.21
112.00 FDX CORP 9,059.94 9,989.00
100.00 FEDERAL NATL MTG ASSN 6,084.00 7,400.00
31.80 FIDELITY SELECT PORTFOLIOS 1,878.39 1,937.83
UTILS PORTFOLIO
96.89 FIDELITY VALUE FD SH BEN INT 5,775.90 4,490.76
200.00 FIRST AMERN FINL CORP CALIF 1,471.71 6,425.00
100.00 FIRST UN CORP 5,071.50 6,081.25
</TABLE>
-S3-
<PAGE> 23
CBS EMPLOYEE INVESTMENT FUND
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
<TABLE>
<CAPTION>
SHARES/
PAR VALUE SECURITY DESCRIPTION COST MARKET VALUE
--------- -------------------- ---- ------------
<S> <C> <C> <C>
300.00 FREDS INC CL A 4,413.25 4,500.00
255.00 GAP INC 9,792.63 14,311.88
287.40 GENERAL ELECTRIC CO 25,695.24 29,314.60
34.00 GENERAL MOTORS CORP 2,344.98 2,433.13
200.00 GENERAL NUTRITION COS INC 3,307.75 3,250.00
300.00 GEOCITIES 11,550.22 10,087.50
1,146.76 GILLETTE CO 55,215.58 54,829.51
325.00 HALLIBURTON CO 9,843.09 9,628.13
100.00 HARRAHS ENTMT INC 1,311.80 1,568.75
3,000.00 HEALTHSPAN INC 6,121.50 8,250.00
1,000.00 HEALTH MGMT SYS INC 9,146.19 7,875.00
11,003.00 HEMISPHERX BIOPHARMA INC 71,822.79 75,645.63
105.00 HEWLETT PACKARD CO 6,084.88 7,172.81
100.00 HILTON HOTELS CORP 1,501.55 1,912.50
320.00 HOME DEPOT INC 10,324.62 19,580.00
1,500.00 I-LINK CORP 10,211.88 3,187.50
1,000.00 ILLINOIS SUPERCONDUCTOR CORP 3,516.91 1,000.00
2,437.00 IMATRON INC 5,939.47 3,350.88
0.24 INDEPENDENCE CMNTY BK CORP 4.40 3.81
6,648.00 INFINITY BROADCASTING NEW CL A 174,543.45 181,989.00
1,286.00 INFOSEEK CORP 37,221.68 63,496.25
200.00 INKTOMI CORP 17,323.51 25,875.00
1,400.00 INSIGHT HEALTH SVCS CORP 17,259.38 8,400.00
2,000.00 INTEGRATED DEVICE TECH INC 14,161.19 12,250.00
498.00 INTEL CORP CALIF 41,251.14 59,044.13
35.00 INTERNATIONAL PAPER CO 1,532.75 1,568.44
5,056.00 IOMEGA CORP 38,387.75 36,972.00
10.00 ISIS PHARMACEUTICALS 147.13 129.38
</TABLE>
-S4-
<PAGE> 24
CBS EMPLOYEE INVESTMENT FUND
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
<TABLE>
<CAPTION>
SHARES/
PAR VALUE SECURITY DESCRIPTION COST MARKET VALUE
--------- -------------------- ---- ------------
<S> <C> <C> <C>
300.00 JACOR COMMUNICATIONS INC 16,457.38 19,312.50
110.03 JOHNSON & JOHNSON 7,991.75 9,228.85
300.00 K MART CORP 3,932.88 4,593.75
271.00 K TEL INTL INC NEW 6,439.03 2,845.50
8,000.00 KEY ENERGY SERVICES INC 130,812.60 37,500.00
10.00 KING WORLD PRODTNS INC 314.00 294.38
1,500.00 KOO KOO ROO ENTERPRISES INC 5,041.22 843.75
100.00 L-3 COMMUNICATIONS HLDGS INC 4,621.50 4,656.25
1,000.00 LIGHTBRIDGE INC 8,205.88 5,500.00
7,745.80 LUCENT TECHNOLOGIES INC 604,004.79 851,553.45
869.00 MCI WORLDCOM INC 41,330.00 62,350.75
41.12 MFS SER TR II EMERGING GROWTH 1,803.14 1,833.91
FD CL A
500.00 MMC NETWORkS INC 5,086.31 6,625.00
365.00 MANUGISTICS GROUP INC 11,039.35 4,562.50
100.00 MARK IV INDS INC 1,583.78 1,300.00
350.00 MARKET GUIDE INC 2,975.00 1,421.88
350.00 MARKET GUIDE INC 3,521.70 4,156.25
1,000.00 MEDICONSULT COM INC 6,574.00 8,187.50
672.00 MELLON BK CORP 46,599.65 46,200.00
144.03 MERCK & CO INC 21,108.86 21,243.69
1,130.00 MERRILL LYNCH & CO INC 68,313.59 75,427.50
2,174.00 MICROSOFT CORP 213,293.75 301,506.63
100.00 MILACRON INC 1,919.00 1,925.00
600.00 MONSANTO CO 32,363.70 28,500.00
20.00 MORGAN J P & CO INC 2,470.25 2,101.25
72.00 MOTOROLA INC 4,255.21 4,396.50
2,000.00 NAVARRE CORP 20,724.02 20,125.00
</TABLE>
-S5-
<PAGE> 25
CBS EMPLOYEE INVESTMENT FUND
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
<TABLE>
<CAPTION>
SHARES/
PAR VALUE SECURITY DESCRIPTION COST MARKET VALUE
--------- -------------------- ---- ------------
<S> <C> <C> <C>
876.00 NETSCAPE COMMUNICATIONS 28,584.71 53,217.00
CORP
1,500.00 NEXSTAR PHARMACEUTICALS INC 15,101.50 13,875.00
100.00 NIKE INC CL B 4,790.25 4,056.25
52.00 NOKIA CORP SPON ADR 4,233.81 6,262.75
100.00 NORDSTROM INC WASH 2,509.00 3,468.75
1,204.00 NORTHWEST AIRLS CORP CL A 34,994.35 30,777.25
10.00 ORANGE & ROCKLAND UTILS INC 572.13 570.00
2,000.00 OXFORD HEALTH PLANS INC 28,886.57 29,750.00
200.00 PAPA JOHNS INTL INC 8,193.00 8,825.00
100.00 PARTY CITY CORP 1,211.50 1,443.75
200.00 PAXSON COMMUNICATIONS CORP 1,808.06 1,837.50
271.00 PEAPOD INC 1,371.39 1,846.19
1,400.00 PEOPLESOFT INC 54,924.63 26,512.50
396.80 PFIZER INC 47,143.91 49,600.00
84.00 PHILIP MORRIS COS INC 3,867.15 4,494.00
1,021.00 PIER 1 IMPORTS INC 10,064.95 9,890.94
34,000.00 PLAYERS INTL INC 159,184.06 210,375.00
60.00 PREMIERE TECHNOLOGIES 638.00 442.50
400.00 PREVIEW TRAVEL INC 6,640.60 7,375.00
55.00 PRICE T ROWE & ASSOC INC 2,050.88 1,883.75
57.00 QLOGIC CORP 7,496.38 7,459.88
300.00 QUINENCO S A ADR 2,784.95 2,400.00
61.00 QWEST COMMUNICATIONS INTL 2,520.56 3,050.00
INC
15.00 RAINFOREST CAFE INC 240.88 90.94
55.00 RITE AID CORP 2,522.69 2,736.25
2,750.00 ROCKY MTN INTERNET INC 42,493.92 34,718.75
50.00 SAFESKIN CORP 1,945.88 1,206.25
</TABLE>
-S6-
<PAGE> 26
CBS EMPLOYEE INVESTMENT FUND
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
<TABLE>
<CAPTION>
SHARES/
PAR VALUE SECURITY DESCRIPTION COST MARKET VALUE
--------- -------------------- ---- ------------
<S> <C> <C> <C>
25.00 SAFEWAY INC NEW 1,530.75 1,523.44
100.00 SAKS INC 1,931.65 3,156.25
220.00 SAP AKTIENGESELLSCHAFT SPONS ADR 10,729.98 7,933.75
125.00 SCHERING PLOUGH CORP 6,962.28 6,906.25
500.00 SCHLUMBERGER LTD 31,098.48 23,187.50
42.00 SCHWAB CHARLES CORP NEW 2,464.63 2,359.88
253.00 SCIENTIFIC ATLANTA INC 5,667.97 5,771.56
1,500.00 SHARPER IMAGE CORP 27,134.00 17,812.50
60.00 SKYMALL INC 2,321.39 1,252.50
200.00 SMURFIT-STONE CONTAINER CORP 2,551.50 3,162.50
10.00 SOURCE MEDIA INC COM NEW 220.69 180.63
25.00 STAPLES INC 1,114.63 1,092.19
201.00 STARBUCKS CORP 9,035.95 11,281.13
3,000.00 STRUCTURAL DYNAMICS REFRESH CORP 45,742.91 59,625.00
500.00 SUNGARD DATA SYS INC 18,738.06 19,843.75
800.00 TEL-SAVE COM INC 9,614.88 13,400.00
23,444.00 TENKE MNG CORP 5,345.23 4,908.44
500.00 TERADYNE INC 20,273.14 21,187.50
100.00 TEXACO INC 5,659.00 5,300.00
100.00 TEXAS INSTRS INC 5,621.50 8,562.50
775.00 3DFX INTERACTIVE INC 20,024.08 9,784.38
200.00 TIFFANY & CO NEW 5,971.00 10,375.00
14.00 TIME WARNER INC 706.31 868.88
100.00 UAL CORP COM PAR $0.01 9,371.50 5,968.75
500.00 USA NETWORKS INC 18,048.84 16,562.50
296.00 UBID INC 22,284.73 31,561.00
11.05 UNION PAC CORP 460.83 497.99
60.00 UNIVISION COMMUNICATIONS INC CL A 1,984.10 2,160.00
</TABLE>
-S7-
<PAGE> 27
CBS EMPLOYEE INVESTMENT FUND
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
<TABLE>
<CAPTION>
SHARES/
PAR VALUE SECURITY DESCRIPTION COST MARKET VALUE
--------- -------------------- ---- ------------
<S> <C> <C> <C>
2,380.00 USA BANCSHARES INC 25,177.83 21,420.00
205.00 WAL MART STORES INC 13,437.45 16,694.69
5.00 WALGREEN CO 297.44 292.81
440.00 WARNER LAMBERT CORP 31,928.02 33,082.50
339.00 WELLS FARGO & CO NEW 13,108.75 13,538.81
2,000.00 WENDY'S INTL INC 48,186.50 43,625.00
50.00 WESTWOOD ONE INC 1,131.75 1,525.00
2,000.00 WOLVERINE WORLD WIDE INC 25,379.63 26,500.00
2,179.00 YAHOO INC 517,144.87 516,286.81
20.07 YORK GROUP INC 362.30 190.68
246.00 ZIFF DAVIS INC 5,186.98 3,889.88
---------------- ----------------------
TOTAL CORPORATE STOCK -- COMMON 91,722,541.17 106,962,750.66
---------------- ----------------------
LOANS TO PARTICIPANTS -- OTHER
- ------------------------------
16,078,770.37 CBS CORP LOANS TO PARTICIPANTS 16,078,770.37 16,078,770.37
---------------- ----------------------
TOTAL LOANS TO PARTICIPANTS -- OTHER 16,078,770.37 16,078,770.37
---------------- ----------------------
</TABLE>
<TABLE>
<CAPTION>
CONTRACT
UNALLOCATED INSURANCE CONTRACTS COST VALUE
- ------------------------------- ---- -----
<S> <C> <C> <C>
13,567,194.75 NEW YORK LIFE GAC-06563 13,567,194.75 13,567,194.75
7.80% 04/09/2003
89,129,820.41 AETNA LIFE INS GIC #LT13789 89,129,820.41 89,129,820.41
6.50% 07/01/1999
52,349,827.62 NEW YORK LIFE GAC #GA-06563002 52,349,827.62 52,349,827.62
7.25% 06/30/2000
7,900,419.96 NEW YORK LIFE GIC #GS-06563 7,900,419.96 7,900,419.96
7.35% 06/30/2000
35,225,029.36 PRUDENTIAL GP ANTV GA-8086-211 35,225,029.36 35,225,029.36
6.26% 07/01/2001
</TABLE>
-S8-
<PAGE> 28
CBS EMPLOYEE INVESTMENT FUND
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
<TABLE>
<CAPTION>
SHARES/ CONTRACT
PAR VALUE SECURITY DESCRIPTION COST VALUE
--------- -------------------- ---- -----
<S> <C> <C> <C>
27,772,242.25 JOHN HANCOCK MUTUAL LIFE #8379 27,772,242.25 27,772,242.25
6.00% 06/30/2001
15,050,026.32 JOHN HANCOCK MUTUAL LIFE #8379-10 15,050,026.32 15,050,026.32
4.33% 06/01/2002
26,218,092.49 JOHN HANCOCK MUTUAL LIFE #9720 26,218,092.49 26,218,092.49
5.35% 06/01/2002
10,533,858.87 ALLSTATE LIFE INS CO 10,533,858.87 10,533,858.87
6.67% 04/11/2001
11,536,646.73 PRIMCO GIC JACKSON NATIONAL 11,536,646.73 11,536,646.73
6.46% 03/15/1999
60,695,813.06 MONUMENTAL SYN CONT BDA00331TR 60,695,813.06 60,695,813.06
6.61% 11/05/2001
54,253,888.90 ALLSTATE LIFE INS CO CONTRACT 54,253,888.90 54,253,888.90
5.99% 08/15/2003
30,124,604.86 STATE STREET BANK & TRUST GIC 30,124,604.86 30,124,604.86
5.33% 8/19/2003
------------------- -------------------------
TOTAL UNALLOCATED INSURANCE CONTRACTS 434,357,465.58 434,357,465.58
=================== =========================
<CAPTION>
COMMON/COLLECTIVE TRUST COST MARKET VALUE
- ----------------------- ---- ------------
<S> <C> <C> <C>
376.33 OPPENHEIMER STRATEGIC FDS TR 1,886.13 1,723.57
INCOME FD CL A
12,272,691.74 TBC INC POOLED EMPLOYEE FUNDS 12,272,691.74 12,272,691.74
DAILY LIQUIDITY FUND
16.12 CASH HELD AT WELLS FARGO BANK 16.12 16.12
491,358.74 STATE STREET EAFE FUND 5,046,383.87 5,567,585.92
29,642,419.09 BARCLAY EQUITY INDEX FUND F 369,112,457.79 468,060,496.60
1,141,245.18 J P MORGAN LARGE COMPANY FUND 20,110,197.90 24,125,923.00
------------------- -------------------------
TOTAL COMMON/COLLECTIVE TRUST 406,543,633.55 510,028,436.95
=================== =========================
</TABLE>
-S9-
<PAGE> 29
CBS EMPLOYEE INVESTMENT FUND
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
<TABLE>
<CAPTION>
SHARES/
PAR VALUE SECURITY DESCRIPTION COST MARKET VALUE
--------- -------------------- ---- ------------
REGISTERED INVESTMENT COMPANIES
- -------------------------------
<S> <C> <C> <C>
1,119.46 ALLIANCE PREMIERE GROWTH FD CL A 28,332.60 33,874.74
821.76 AMERICAN CENTY MUT FDS ULTRA 25,854.81 27,455.07
TWENTIETH CENTY ULTRA FD INV
987.27 BARON ASSET FUND SH BEN INT 50,040.46 49,896.73
1,207,694.90 DFA INVT DIMENSIONS GROUP INC 17,812,905.75 15,615,495.07
U S 6-10 SMALL CO PORTFOLIO
103.20 DELAWARE GROUP DECATUR FD 2,010.40 1,762.60
INC DECATUR II SER
1,753.60 DREYFUS BASIC GNMA FD SBI 26,903.13 26,321.46
2,393,742.80 DREYFUS 100% US TREAS MM FD 2,393,742.80 2,393,742.80
88.25 DREYFUS/LAUREL DISC STK FD R 3,144.55 3,305.70
101.91 DREYFUS NEW LEADERS FUND 4,000.00 4,209.94
636.87 FIDELITY INVT TR EUROPE APPRECIATION FD 12,104.99 11,374.57
357.72 FIDELITY COMWLTH TR LARGE CAP STK FD 5,832.12 6,074.09
526.00 FIDELITY DEVONSHIRE TR UTILS INCOME FD 11,725.00 12,192.66
1,027.61 FIDELITY SECS FD GROWTH & INCOME 44,370.95 47,105.69
PORTFOLIO
295.69 FIDELITY SECS FD DIVIDEND 8,166.16 8,495.03
GROWTH FD
379.66 FIDELITY SELECT PORTFOLIOS 47,536.80 51,926.37
HEALTH CARE PORTFOLIO
323.68 FIDELITY SELECT PORTFOLIOS 14,754.13 13,876.29
REG BKS PORTFOLIO
199.89 FIDELITY SELECT PORTFOLIOS 5,535.01 2,892.38
ENERGY SVC PORTFOLIO
98.10 FIDELITY SELECT PORTFOLIOS 4,819.46 4,843.15
FOOD & AGRICULTURE PORTFOLIO
57.17 FIDELITY SELECT PORTFOLIOS 2,507.37 2,199.29
BROKERAGE &INVT MGMT PORTFOLIO
171.59 FIDELITY SELECT PORTFOLIOS 7,514.98 11,618.02
COMPUTERS PORTFOLIO
</TABLE>
-S10-
<PAGE> 30
CBS EMPLOYEE INVESTMENT FUND
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
<TABLE>
<CAPTION>
SHARES/
PAR VALUE SECURITY DESCRIPTION COST MARKET VALUE
--------- -------------------- ---- ------------
<S> <C> <C> <C>
110.72 FIDELITY UN STR TR 2,116.34 2,201.19
EXPORT CO FD
7,095.61 59 WALL STR FD INC EURO EQ FD 281,624.93 260,409.03
219.70 INVESCO MULTIPLE ASSET FDS INC 3,153.10 3,517.45
BALANCE FD
267.24 INVESTCO INTL FDS INC EUROPEAN FD 5,127.89 4,775.53
672.04 INVESCO INCOME FDS HIGH YLD FD 5,000.00 4,327.96
2,154.84 JANUS INVT FD SH BEN INT 63,977.82 72,510.23
101.24 JANUS INVT FD GROWTH & INCOME FD 2,697.57 2,945.94
954.47 JANUS INVT FD WORLDWIDE FD 44,898.86 45,203.56
2,018.30 JANUS INVT FD TWENTY FD 80,791.06 107,575.23
7,577.25 KAUFMANN FD INC COM 47,301.58 43,038.78
81.27 MASSACHUSETTS INVS TR SH 1,607.66 1,645.68
BEN INT CL A
3,809.41 NEUBERGER & BERMAN EQUITY 61,737.42 55,007.82
FDS GENESIS FD
811.16 NEUBERGER & BERMAN EQUITY 18,886.58 18,186.23
FDS GUARDIAN FD
753.13 ROWE T PRICE BLUE CHIP GROWTH 21,707.49 23,045.78
FD INC COM
714.24 ROWE T PRICE DIVID GROWTH 15,628.18 15,720.33
FD INC COM
1,341.87 ROWE T PRICE EQUITY INCOME 36,135.13 35,318.02
FD SH BEN INT
326.37 ROWE T PRICE MID CAP GROWTH 10,267.71 11,122.72
FD INC COM
535.67 SCUDDER INTL FD INC GREATER 12,840.90 14,211.19
EUROPE GROWTH FUND
66.77 SELIGMAN COMMUNICATIONS & 1,809.34 2,051.93
INFORMATION FD INC CL A SHS
2,954.33 UAM FDS INC FMA SMALL CO PORTFOLIO 50,226.74 45,733.06
3,346,570.70 VANGUARD STAR FD MODERATE 50,601,476.36 56,423,182.04
GROWTH PORTFOLIO
458,430.53 VANGUARD STAR FD CONSERVATIVE GROWTH PORTFOLIO 6,479,095.52 6,743,513.13
</TABLE>
-S11-
<PAGE> 31
CBS EMPLOYEE INVESTMENT FUND
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
<TABLE>
<CAPTION>
SHARES/
PAR VALUE SECURITY DESCRIPTION COST MARKET VALUE
--------- -------------------- ---- ------------
<S> <C> <C> <C>
560,633.73 VANGUARD STAR FD GROWTH 9,640,443.06 10,534,307.69
PORTFOLIO
1,074.87 VANGUARD WORLD FD U S GROWTH 36,561.03 40,296.76
PORTFOLIO
1,001.01 VANGUARD GROWTH & INC PTF 30,136.36 30,790.98
726.70 VANGUARD/WINDSOR FD INC II 22,347.12 21,691.97
VANGUARD/WINDSOR II PORTFOLIO
1,442.68 VANGUARD INDEX TR GROWTH PORTFOLIO 40,906.77 45,689.55
1,782.31 WASHINGTON MUT INVS FD INC 59,916.00 58,655.72
------------------- --------------------
TOTAL REGISTERED INVESTMENT COMPANIES 88,190,219.99 92,995,337.14
------------------- --------------------
GRAND TOTAL $ 1,036,892,630.66 $ 1,160,422,760.70
----------- =================== ====================
</TABLE>
-S12-
<PAGE> 32
CBS EMPLOYEE INVESTMENT FUND
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
For the year ended December 31, 1998
<TABLE>
<CAPTION>
SHARES/ COST OF PROCEEDS COST OF ASSETS
PAR VALUE SECURITY DESCRIPTION PURCHASES FROM SALES DISPOSED GAIN/LOSS
- --------- -------------------- --------- ---------- -------- ---------
<S> <C> <C> <C> <C> <C>
3,473,942.00 VANGUARD STAR FD MODERATE
GROWTH PORTFOLIO $ 51,865,954.07 -- -- --
59,869,442.67 TBC INC POOLED EMPLOYEE FUNDS
DAILY LIQUIDITY FUND 59,869,442.67 -- -- --
49,927,840.98 TBC INC POOLED EMPLOYEE FUNDS
DAILY LIQUIDITY FUND -- 49,927,840.98 49,927,840.98 --
46,346,686.13 TBC INC POOLED EMPLOYEE FUNDS
DAILY LIQUIDITY FUND -- 46,346,686.13 46,346,686.13 --
46,346,686.13 ALLSTATE LIFE INS CO CONTRACT
5.99% 08/15/2003 46,346,686.13 -- -- --
31,584,730.21 BARCLAY EQUITY INDEX FUND F 389,755,570.83 -- -- --
2,251,438.00 CBS CORP COM 68,530,935.21 -- -- --
2,104,183.00 CBS CORP COM -- 64,293,989.43 55,307,156.91 8,986,832.52
4,002,820.55 VANGUARD STAR FD MODERATE
GROWTH PORTFOLIO 59,481,280.89 -- -- --
757,018.88 VANGUARD STAR FD MODERATE
GROWTH PORTFOLIO -- 11,889,995.94 11,348,023.49 541,972.45
334,396,859.02 TBC INC POOLED EMPLOYEE FUNDS
DAILY LIQUIDITY FUND 334,396,859.0200 -- -- --
378,802,464.97 TBC INC POOLED EMPLOYEE FUNDS
DAILY LIQUIDITY FUND -- 378,802,464.97 378,802,464.97 --
2,825,831.92 NEW YORK LIFE GAC-06563
7.80% 04/09/2003 2,825,831.92 -- -- --
</TABLE>
-S13-
<PAGE> 33
CBS EMPLOYEE INVESTMENT FUND
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
For the year ended December 31, 1998
<TABLE>
<CAPTION>
SHARES/ COST OF PROCEEDS COST OF ASSETS
PAR VALUE SECURITY DESCRIPTION PURCHASES FROM SALES DISPOSED GAIN/LOSS
- --------- -------------------- --------- ---------- -------- ---------
<S> <C> <C> <C> <C> <C>
43,408,895.30 NEW YORK LIFE GAC-06563
7.80% 04/09/2003 -- 43,408,895.30 43,408,895.30 --
34,190,970.24 JOHN HANCOCK MUTUAL LIFE #8379
6.00% 06/30/2001 34,190,970.2400 -- -- --
31,792,905.28 JOHN HANCOCK MUTUAL LIFE #8379
6.00% 06/30/2001 -- 31,792,905.28 31,792,905.28 --
63,750,823.55 ALLSTATE LIFE INS CO CONTRACT
5.99% 08/15/2003 63,750,823.55 -- -- --
9,444,745.34 ALLSTATE LIFE INS CO CONTRACT
5.99% 08/15/2003 -- 9,444,745.34 9,444,745.34 --
42,124,555.58 STATE STREET BANK & TRUST GIC
5.33% 8/19/2003 42,124,555.5800 -- -- --
11,999,950.70 STATE STREET BANK & TRUST GIC
5.33% 8/19/2003 - 11,999,950.70 11,999,950.7000 --
36,556,583.67 BARCLAY EQUITY INDEX FUND F 454,637,394.44 -- -- --
6,914,164.57 BARCLAY EQUITY INDEX FUND -- 93,283,759.18 85,524,936.65 7,758,822.53
</TABLE>
-S14-
<PAGE> 34
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan
Administrator has duly caused this annual report to be signed on behalf of the
Plan by the undersigned thereunto duly authorized.
CBS Employee Investment Fund
Dated: 6/28/99 By: /s/ A.G. Ambrosio
----------------------------
Name: A. G. Ambrosio
Title: Plan Administrator
<PAGE> 35
EXHIBIT INDEX
Exhibit No. Description
23 Consent of Mitchell & Titus, LLP
<PAGE> 1
Exhibit 23
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (No. 33-44044) of our report dated June 4, 1999, included
in the Annual Report of the CBS Employee Investment Fund on Form 11-K for the
year ended December 31, 1998.
/s/ Mitchell & Titus, LLP
New York, New York
June 28, 1999
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