<PAGE> 1
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
For the fiscal year ended December 31, 1998
Commission file number 001-12335
Butler Employee Savings Trust (BEST)
401(k) Plan
Butler Manufacturing Company
BMA Tower
Penn Valley Park
Kansas City, MO 64108
<PAGE> 2
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Board of Directors of the
Butler Manufacturing Company:
We have audited the accompanying statements of net assets available for
benefits, with fund information of the Butler Manufacturing Company 401(k)
Employee Savings Trust Plan as of December 31, 1998 and 1997, and the related
statements of changes in net assets available for benefits, with fund
information for 1998. These financial statements and the schedules referred to
below are the responsibility of the Plan's management. Our responsibility is
to express an opinion on these financial statements and schedules based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits 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, with fund
information of the Plan as of December 31, 1998 and 1997, and the changes in
net assets available for benefits for 1998 in conformity with generally
accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
held for investment purposes as of December 31, 1998, and reportable
transactions for the year then ended 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 fund information in the statements
of net assets available for benefits, with fund information and changes in net
assets available for benefits, with fund information is presented for the
purposes of additional analysis rather than to present the net assets available
for benefits and changes in net assets available for benefits of each fund.
The supplemental schedules have been subjected to the auditing procedures
applied in the audit of the basic financial statements and, in our opinion, are
fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
/s/ Arthur Andersen, LLP
Kansas City, Missouri,
June 29, 1999
1
<PAGE> 3
BUTLER MANUFACTURING COMPANY
401(k) EMPLOYEE SAVINGS TRUST PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
Fund Information for 1998
----------------------------------------------------------------------------------------------
Managed Equity International
Income Puritan Magellan Income Growth Asset
Portfolio Fund Fund Fund Fund Manager
-------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at fair value-
Fidelity investment funds-
Managed Income Portfolio $9,221,787 $ - $ - $ - $ - $ -
Puritan Fund - 12,947,133 - - - -
Magellan Fund - - 28,231,877 - - -
Equity Income Fund - - - 13,134,872 - -
International Growth Fund - - - - 1,411,862 -
Asset Manager - - - - - 1,195,558
Asset Manager Growth - - - - - -
Asset Manager Income - - - - - -
Retirement Money Market Trust - - - - - -
Butler Stock Fund - - - - - -
Participant loans - - - - - -
-------------- -------------- -------------- -------------- -------------- --------------
Total investments 9,221,787 12,947,133 28,231,877 13,134,872 1,411,862 1,195,558
-------------- -------------- -------------- -------------- -------------- --------------
Receivables-
Employee contributions receivable 76,532 89,135 187,611 94,155 24,092 14,651
Employer contributions receivable 125,021 145,260 354,993 156,740 39,502 24,315
-------------- -------------- -------------- -------------- -------------- --------------
Total receivables 201,553 234,395 542,604 250,895 63,594 38,966
-------------- -------------- -------------- -------------- -------------- --------------
Net assets available
for benefits $9,423,340 $13,181,528 $28,774,481 $13,385,767 $1,475,456 $1,234,524
============== ============== ============== ============== ============== ==============
(continued)
<CAPTION>
Fund Information for 1998
------------------------------------------------------------------------------
Retirement
Asset Asset Money Butler
Manager Manager Market Stock Participant
Growth Income Trust Fund Loans Total
-------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at fair value-
Fidelity investment funds-
Managed Income Portfolio $ - $ - $ - $ - $ - $ 9,221,787
Puritan Fund - - - - - 12,947,133
Magellan Fund - - - - - 28,231,877
Equity Income Fund - - - - - 13,134,872
International Growth Fund - - - - - 1,411,862
Asset Manager - - - - - 1,195,558
Asset Manager Growth 2,905,550 - - - - 2,905,550
Asset Manager Income - 780,900 - - - 780,900
Retirement Money Market Trust - - 6,490,185 - - 6,490,185
Butler Stock Fund - - - 1,176,481 - 1,176,481
Participant loans - - - - 2,260,316 2,260,316
-------------- -------------- -------------- -------------- -------------- --------------
Total investments 2,905,550 780,900 6,490,185 1,176,481 2,260,316 79,756,521
-------------- -------------- -------------- -------------- -------------- --------------
Receivables-
Employee contributions receivable 31,410 10,098 57,068 21,603 - 606,355
Employer contributions receivable 47,455 13,597 102,710 574,834 - 1,584,427
-------------- -------------- -------------- -------------- -------------- --------------
Total receivables 78,865 23,695 159,778 596,437 - 2,190,782
-------------- -------------- -------------- -------------- -------------- --------------
Net assets available
for benefits $2,984,415 $804,595 $6,649,963 $1,772,918 $2,260,316 $81,947,303
============== ============== ============== ============== ============== ==============
(continued)
</TABLE>
2
<PAGE> 4
BUTLER MANUFACTURING COMPANY
401(k) EMPLOYEE SAVINGS TRUST PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1998 AND 1997
(continued)
<TABLE>
<CAPTION>
Fund Information for 1997
----------------------------------------------------------------------------------------------
Managed Equity International
Income Puritan Magellan Income Growth Asset
Portfolio Fund Fund Fund Fund Manager
-------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at fair value-
Fidelity investment funds-
Managed Income Portfolio $7,727,813 $ - $ - $ - $ - $ -
Puritan Fund - 10,234,505 - - - -
Magellan Fund - - 19,377,145 - - -
Equity Income Fund - - - 11,746,813 - -
International Growth Fund - - - - 1,077,993 -
Asset Manager - - - - - 850,659
Asset Manager Growth - - - - - -
Asset Manager Income - - - - - -
Retirement Money
Market Trust - - - - - -
Butler Stock Fund - - - - - -
Participant loans - - - - - -
-------------- -------------- -------------- -------------- -------------- --------------
Total investments 7,727,813 10,234,505 19,377,145 11,746,813 1,077,993 850,659
-------------- -------------- -------------- -------------- -------------- --------------
Receivables-
Employee contributions
receivable 72,905 81,707 153,716 88,208 21,619 13,694
Employer contributions
receivable 120,347 131,554 301,399 145,801 33,622 19,613
-------------- -------------- -------------- -------------- -------------- --------------
Total receivables 193,252 213,261 455,115 234,009 55,241 33,307
-------------- -------------- -------------- -------------- -------------- --------------
Net assets available
for benefits $7,921,065 $10,447,766 $19,832,260 $11,980,822 $1,133,234 $883,966
============== ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements.
</TABLE>
<TABLE>
<CAPTION>
Fund Information for 1997
------------------------------------------------------------------------------
Retirement
Asset Asset Money Butler
Manager Manager Market Stock Participant
Growth Income Trust Fund Loans Total
-------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at fair value-
Fidelity investment funds-
Managed Income Portfolio $ - $ - $ - $ - $ - $ 7,727,813
Puritan Fund - - - - - 10,234,505
Magellan Fund - - - - - 19,377,145
Equity Income Fund - - - - - 11,746,813
International Growth Fund - - - - - 1,077,993
Asset Manager - - - - - 850,659
Asset Manager Growth 1,886,165 - - - - 1,886,165
Asset Manager Income - 404,353 - - - 404,353
Retirement Money
Market Trust - - 5,208,009 - - 5,208,009
Butler Stock Fund - - - 968,417 - 968,417
Participant loans - - - - 1,791,420 1,791,420
-------------- -------------- -------------- -------------- -------------- -------------
Total investments 1,886,165 404,353 5,208,009 968,417 1,791,420 61,273,292
-------------- -------------- -------------- -------------- -------------- --------------
Receivables-
Employee contributions
receivable 27,420 7,972 56,314 20,210 - 543,765
Employer contributions
receivable 42,729 9,592 95,989 505,044 - 1,405,690
-------------- -------------- -------------- -------------- -------------- --------------
Total receivables 70,149 17,564 152,303 525,254 - 1,949,455
-------------- -------------- -------------- -------------- -------------- --------------
Net assets available
for benefits $1,956,314 $421,917 $5,360,312 $1,493,671 $1,791,420 $63,222,747
============== ============== ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements.
</TABLE>
3
<PAGE> 5
BUTLER MANUFACTURING COMPANY
401(k) EMPLOYEE SAVINGS TRUST PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
Managed Equity International
Income Magellan Income Growth Asset
Portfolio Puritan Fund Fund Fund Fund Manager
-------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
CONTRIBUTIONS:
Employee $961,251 $1,191,148 $2,379,995 $1,373,714 $316,677 $ 182,898
Employer 125,021 145,260 354,993 156,740 39,502 24,315
Rollover 396,371 242,018 444,231 57,474 12,098 158,591
-------------- -------------- -------------- -------------- -------------- --------------
Total contributions 1,482,643 1,578,426 3,179,219 1,587,928 368,277 365,804
INCOME:
Net appreciation (depreciation)
in fair value of investments - 473,153 5,522,556 721,171 57,050 (57,976)
Interest and dividends 522,803 1,314,306 1,328,383 768,280 49,582 212,663
OTHER INCREASES (DECREASES):
Distributions (527,458) (427,677) (1,089,782) (599,985) (73,818) (48,079)
Fees (1,550) (8,867) (6,202) (1,384) (91) (259)
Loan repayments 164,795 109,323 282,617 115,424 15,865 12,931
Loan withdrawals (299,196) (161,882) (433,016) (188,312) (33,553) (39,526)
Net interfund transfers 162,179 (145,618) 157,056 (998,386) (41,090) (95,000)
Net transfers (to) from another
employer-sponsored fund (5,066) 2,598 (6,429) 209 - -
Other 3,125 - 7,819 - - -
-------------- -------------- -------------- -------------- -------------- --------------
Increase in net assets available
for plan benefits 1,502,275 2,733,762 8,942,221 1,404,945 342,222 350,558
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, beginning of year 7,921,065 10,447,766 19,832,260 11,980,822 1,133,234 883,966
-------------- -------------- -------------- -------------- -------------- --------------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, end of year $9,423,340 $13,181,528 $28,774,481 $13,385,767 $1,475,456 $1,234,524
============== ============== ============== ============== ============== ==============
The accompanying notes are an integral part of this financial statement.
</TABLE>
<TABLE>
<CAPTION>
Asset Asset Retirement Butler
Manager Manager Money Stock Participant
Growth Income Market Trust Fund Loans Total
-------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
CONTRIBUTIONS:
Employee $ 418,963 $116,449 $730,842 $ 253,133 $ - $ 7,925,070
Employer 47,455 13,597 102,710 574,834 - 1,584,427
Rollover 286,111 169,415 16,242 6,734 - 1,789,285
-------------- -------------- -------------- -------------- -------------- -------------
Total contributions 752,529 299,461 849,794 834,701 - 11,298,782
INCOME:
Net appreciation (depreciation)
in fair value of investments (4,266) 1,539 - (460,840) - 6,252,387
Interest and dividends 403,264 62,999 312,349 25,082 - 4,999,711
OTHER INCREASES (DECREASES):
Distributions
Fees (192,521) (18,825) (538,688) (141,532) (95,012) (3,753,377)
Loan repayments (295) (120) (2,110) (41,112) - (61,990)
Loan withdrawals 22,253 6,189 83,861 14,756 (828,014) -
Net interfund transfers (60,563) (25,154) (128,756) (25,455) 1,395,413 -
Net transfers (to) from another 114,823 56,589 715,661 73,786 - -
employer-sponsored fund (7,123) - (2,460) (139) (3,080) (21,490)
Other - - - - (411) 10,533
------------- -------------- -------------- -------------- -------------- -------------
Increase in net assets available
for plan benefits 1,028,101 382,678 1,289,651 279,247 468,896 18,724,556
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, beginning of year 1,956,314 421,917 5,360,312 1,493,671 1,791,420 63,222,747
-------------- -------------- -------------- -------------- -------------- -------------
NET ASSETS AVAILABLE FOR PLAN
BENEFITS, end of year $2,984,415 $804,595 $6,649,963 $1,772,918 $2,260,316 $81,947,303
============== ============== ============== ============== ============== =============
The accompanying notes are an integral part of this financial statement.
</TABLE>
4
<PAGE> 6
BUTLER MANUFACTURING COMPANY
401(k) EMPLOYEE SAVINGS TRUST PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
General
Effective March 1, 1987, Butler Manufacturing Company (the Company) established
the 401(k) Employee Savings Trust Plan (the Plan), which is administered by the
administrative committee. The investments of the Plan are in the custody of
Fidelity Institutional Retirement Services Company (Custodian). The trustee of
the Plan is the Fidelity Management Trust Company (Fidelity) which is appointed
by the administrative committee.
The following brief description of the Plan is provided for general information
purposes only. Participants should refer to the plan document for more
complete information.
Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis
and present the net assets available for benefits and changes in net assets
available for benefits.
Fees and Expenses
The expenses incurred by the administrative committee of the Plan in
administering plan activity and the expenses incurred by Fidelity in
administering the trust may be paid from the assets of the Plan or by the
Company. These expenses can be charged against the Plan or paid by the
Company, as the Company elects.
Eligibility
All full-time salaried and nonunion hourly employees are eligible.
Vesting
All eligible employees participating in the Plan are immediately 100 percent
vested in employer contributions.
5
<PAGE> 7
Termination
The Plan may be terminated at any time with the approval of the Company's board
of directors. If the Plan is terminated, each participant's account balance
will be, at the discretion of the Company, distributed in a lump sum or held in
trust to be distributed upon each participant's retirement, death, disability
or termination of employment.
Investment Valuation and Income Recognition
The Plan's investments are stated at fair value. Purchases and sales of
securities are recorded on a trade-date basis.
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 of net assets available for
benefits at the date of the financial statements and the reported amounts of
changes in net assets available for benefits during the reporting period.
Actual results could differ from those estimates.
2. CONTRIBUTIONS:
Employees may contribute to the Plan from 1 percent to 15 percent of their
compensation in 1 percent increments, subject to applicable IRS regulations.
Participants may direct investments of their contribution in 1 percent
increments among the funds established by Fidelity. At the discretion of the
board of directors and based on the Company's profitability, employee
contributions up to 6 percent of compensation will be matched 30 percent by the
Company. This match is applicable only to employees who are active employees
on December 31, except in cases of retirement, disability or death. Effective
January 1, 1997, the Plan was amended to require that one-third of all
company-matching contributions be invested in the Butler Common Stock Fund.
3. DISTRIBUTIONS:
If a participant retires on or after attaining age 55, becomes totally or
permanently disabled, dies or terminates employment for any other reason, the
full value of the account becomes distributable. If the value of the amount
distributable exceeds $3,500, the distribution cannot be made until the
participant reaches age 65 or gives consent to the distribution. All
distributions must be made prior to April 1 of the calendar year immediately
following the date the participant reaches age 70 1/2, even if still employed.
All distributions shall be made in a single payment of cash.
6
<PAGE> 8
Distributions payable to vested participants at December 31, 1998 and 1997,
were $618,726 and $866,964, respectively. These amounts are included in net
assets available for benefits in the accompanying financial statements and are
shown as liability of the Plan for purposes of the Form 5500.
4. IN-SERVICE WITHDRAWALS:
Employee contributions, in part or in total, may be withdrawn for extreme
financial hardships. Such financial hardships include college costs, excessive
medical expenses, the purchase of a principle residence, or to prevent eviction
from a principal residence.
5. LOANS TO PARTICIPANTS:
At the discretion of the administrative committee, loans may be made to a
participant up to the lesser of $50,000 or 50 percent of the value of the
participant's account. No loan may be for an amount less than $1,000. Loans
are secured by an assignment of the participant's total account balance in the
Plan. Loan maturities may not be less than one year nor exceed five years,
except for home loans. Interest rates will be set by the administrative
committee in accordance with uniform procedures consistently applied in a
manner which does not discriminate in favor of officers, shareholders or highly
compensated participants.
6. FEDERAL INCOME TAXES:
The Plan has received a favorable determination letter, dated January 21, 1999,
from the IRS, qualifying the Plan under the Internal Revenue Code and exempting
the trust from federal income taxes. The Plan has not been amended since
receiving the determination letter, therefore, no provision for income taxes is
included in these financial statements.
7
<PAGE> 9
BUTLER MANUFACTURING COMPANY
401(k) EMPLOYEE SAVINGS TRUST PLAN
LINE 27A--SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1998
<TABLE>
<CAPTION>
Fair
Shares Description Cost Value
- --------- ----------------------------------------------------- -------------- --------------
<S> <C> <C> <C>
*Fidelity Management Trust Company-
9,221,788 Managed Income Portfolio $ 9,221,787 $ 9,221,787
645,099 Puritan Fund 11,088,539 12,947,133
233,669 Magellan Fund 19,436,181 28,231,877
236,451 Equity Income Fund 9,623,660 13,134,872
67,521 International Growth Fund 1,337,203 1,411,862
68,750 Asset Manager 1,197,782 1,195,558
155,543 Asset Manager Growth 2,752,288 2,905,550
63,385 Asset Manager Income 768,250 780,900
6,490,185 Retirement Money Market Trust 6,490,185 6,490,185
182,968 Butler Stock Fund 1,609,177 1,176,481
- Participant loans outstanding, 9.0% to 10.0% - 2,260,316
*Party-in-interest to the Plan
</TABLE>
8
<PAGE> 10
BUTLER MANUFACTURING COMPANY
401(k) EMPLOYEE SAVINGS TRUST PLAN
LINE 27D--SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
Purchases Sales
----------------------- ---------------------------------
Number of Total Number of Selling Net
Description Transaction Cost Transaction Price Gain
- ------------------------------------------------ ----------- ---------- ----------- ---------- --------
<S> <C> <C> <C> <C> <C>
Fidelity Management Trust Company-
Puritan Fund 186 $3,326,555 143 $1,087,081 $132,663
Magellan Fund 202 6,093,133 147 2,768,775 498,686
Equity Income Fund 189 3,150,468 144 2,483,579 495,242
Managed Income Portfolio 130 2,806,898 134 1,316,048 -
Retirement Money Market Trust 154 2,924,625 143 1,642,449 -
</TABLE>
9
<PAGE> 11
SIGNATURE
THE PLAN. Pursuant to the requirements of the Securities Exchange Act of 1934,
the Administrative Committee of the Plan has duly caused this annual report to
be signed on its behalf by the undersigned hereunto duly authorized.
BUTLER EMPLOYEE SAVINGS TRUST
<TABLE>
<S> <C>
Date: June 29, 1999 By: /s/ Larry C. Miller
-------------------------------
Larry C. Miller, Member of the
Administrative Committee
</TABLE>
10
<PAGE> 12
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
Number Description
------- --------------------------------------
<S> <C>
23 Consent of Independent Accountant
</TABLE>
12
<PAGE> 1
EXHIBIT 23
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation of
our report dated June 29, 1999, included in this Form 11-K, into the Company's
previously filed Registration Statements on Form S-3 (No. 333-29817) and on
Form S-8 (No. 33-14464, 2-63830, 2-55753, 333-02285, 333-02557 and 2-36370).
/s/ Arthur Andersen LLP
Kansas City, Missouri
June 29, 1999
13
