<PAGE>
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
1-12333
(Commission file number)
IOMEGA CORPORATION
(Exact name of issuer as specified in its charter)
Delaware 86-0385884
(State of Incorporation) (IRS employer identification number)
1821 West Iomega Way, Roy, UT 84067
(Address of principal executive offices) (ZIP Code)
(801) 332-1000
(Registrant's telephone number, including area code)
Iomega Retirement and Investment Savings Plan
(Full title of the Plan)
<PAGE>
EIN: 86-0385884
PLAN NUMBER: 001
IOMEGA RETIREMENT AND INVESTMENT SAVINGS PLAN
FINANCIAL STATEMENTS AS OF
DECEMBER 31, 1998 AND 1997
TOGETHER WITH REPORT OF INDEPENDENT
PUBLIC ACCOUNTANTS
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Steering Committee and Participants of the
Iomega Retirement and Investment Savings Plan:
We have audited the accompanying statements of net assets available for benefits
of the Iomega Retirement and Investment Savings Plan (the "Plan") as of December
31, 1998 and 1997, and the related statement of changes in net assets available
for benefits for the year ended December 31, 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 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 its net assets available for
benefits for the year ended December 31, 1998 in conformity with generally
accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The schedules of assets held for
investment purposes and reportable transactions are presented for purposes of
additional analysis and are not a required part of the basic financial
statements but are supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. The fund information in the statements
of net assets available for benefits and the statement of changes in net assets
available for benefits is presented for purposes of additional analysis rather
than to present the net assets available for benefits and changes in net assets
available for benefits of each fund. The schedules and fund information 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.
/S/ ARTHUR ANDERSEN LLP
- -------------------------------------
ARTHUR ANDERSEN LLP
Salt Lake City, Utah
June 14, 1999
<PAGE>
IOMEGA RETIREMENT AND INVESTMENT SAVINGS PLAN
INDEX TO FINANCIAL STATEMENTS AND SCHEDULES
Statement of Net Assets Available for
Benefits as of December 31, 1998 1
Statement of Net Assets Available for
Benefits as of December 31, 1997 2
Statement of Changes in Net Assets
Available for Benefits for the Year Ended
December 31, 1998 3 - 5
Notes to Financial Statements 6 - 10
Item 27a - Schedule of Assets Held for Investment
Purposes as of December 31, 1998 11
Item 27d - Schedule of Reportable Transactions for
the Year Ended December 31, 1998 12 - 13
<PAGE>
<TABLE>
IOMEGA RETIREMENT AND INVESTMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 1998
<CAPTION>
FUND INFORMATION
-----------------------------------------------------------------
-----------------------------------------------------------------
FIDELITY FUNDS
-----------------------------------------------------------------
Managed Retirement Short-Term
Magellan Contrafund Income Money Market Bond
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENTS,
at fair value $ 5,596,855 $15,016,801 $ 2,506,569 $ 2,406,567 $ 1,045,328
RECEIVABLES:
Employee
contributions 28,385 27,301 4,654 11,012 1,841
Employer
contributions 478,370 593,745 86,506 165,048 53,258
-----------------------------------------------------------------
NET ASSETS $ 6,103,610 $15,637,847 $ 2,597,729 $ 2,582,627 $ 1,100,427
=================================================================
FUND INFORMATION
--------------------------------------------------------------------
--------------------------------------------------------------------
FIDELITY FUNDS
--------------------------------------------------------------------
Spartan U.S.
Equity Asset Equity Diversified Export and
Income II Manager Index International Multinational
---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENTS,
at fair value $ 5,790,978 $ 2,267,149 $ 4,932,187 $ 318,112 $ 225,235
RECEIVABLES:
Employee
contributions 17,666 7,988 22,717 4,094 2,949
Employer
contributions 313,241 133,254 388,209 49,316 39,219
---------------------------------------------------------------------
NET ASSETS $ 6,121,885 $ 2,408,391 $ 5,343,113 $ 371,522 $ 267,403
=====================================================================
FUND INFORMATION
--------------------------------------------------------------------------------------
FIDELITY FUNDS
----------------------------------------
Real Estate
Investment U.S. Government U.S. Bond Iomega Participant
Portfolio Reserves Index Stock Fund Loans Total
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENTS,
at fair value $ 166,069 $ 5,038 $ 456,206 $ 7,275,479 $ 808,040 $ 48,816,613
RECEIVABLES:
Employee
contributions 2,296 - 3,575 19,772 - 154,250
Employer
contributions 24,598 - 35,727 370,033 - 2,730,524
--------------------------------------------------------------------------------------
NET ASSETS $ 192,963 $ 5,038 $ 495,508 $ 7,665,284 $ 808,040 $ 51,701,387
======================================================================================
</TABLE>
The accompanying notes to financial statements are an
integral part of these statements.
-1-
<PAGE>
<TABLE>
IOMEGA RETIREMENT AND INVESTMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 1997
<CAPTION>
FUND INFORMATION
-----------------------------------------------------------------
-----------------------------------------------------------------
FIDELITY FUNDS
-----------------------------------------------------------------
Managed Retirement Short-Term
Magellan Contrafund Income Money Market Bond
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENTS,
at fair value $ 2,831,116 $10,387,070 $ 2,451,608 $ 1,893,013 $ 878,536
RECEIVABLES:
Employee
contributions 27,185 48,332 7,019 10,613 5,129
Employer
contributions 154,517 336,858 58,883 63,499 35,858
-----------------------------------------------------------------
NET ASSETS $ 3,012,818 $10,772,260 $ 2,517,510 $ 1,967,125 $ 919,523
=================================================================
FUND INFORMATION
-------------------------------------------------------------------------------
FIDELITY FUNDS
---------------------------------------
Spartan U.S.
Equity Asset Equity Iomega Participant
Income II Manager Index Stock Fund Loans Total
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENTS,
at fair value $ 3,592,439 $ 1,306,865 $ 2,484,731 $12,568,742 $ 1,194,970 $39,589,090
RECEIVABLES:
Employee
contributions 23,767 12,063 23,026 50,197 - 207,331
Employer
contributions 150,116 71,862 134,786 334,666 - 1,341,045
--------------------------------------------------------------------------------
NET ASSETS $ 3,766,322 $ 1,390,790 $ 2,642,543 $12,953,605 $ 1,194,970 $41,137,466
===============================================================================
</TABLE>
The accompanying notes to financial statements are an
integral part of these statements.
-2-
<PAGE>
<TABLE>
Page 1 of 3
IOMEGA RETIREMENT AND INVESTMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1998
<CAPTION>
FUND INFORMATION
-----------------------------------------------------------------
FIDELITY FUNDS
-----------------------------------------------------------------
Retirement
Managed Money Short-Term
Magellan Contrafund Income Market Bond
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS ATTRIBUTABLE
TO:
Contributions
Employee $ 861,350 $ 1,170,948 $ 166,259 $ 328,525 $ 120,474
Employer 478,370 593,745 86,506 165,048 53,258
Rollover 521,611 508,685 648,251 667,263 50,637
-----------------------------------------------------------------
1,861,331 2,273,378 901,016 1,160,836 224,369
Investment Income
Interest and dividends 233,804 1,106,372 148,058 108,996 65,247
Realized gain (loss) 255,979 349,112 - - 1,677
Net unrealized appreciation
(depreciation) in fair value
of investments 718,821 2,030,400 - - (2,512)
-----------------------------------------------------------------
Total additions 1,208,604 3,485,884 148,058 108,996 64,412
(reductions)
REDUCTIONS IN NET ASSETS ATTRIBUTABLE
TO:
Distributions to participants (369,046) (1,014,188) (662,417) (656,882) (129,623)
TRANSFERS BETWEEN
FUNDS 389,903 120,513 (306,438) 2,552 21,746
-----------------------------------------------------------------
Net additions
(reductions) 3,090,792 4,865,587 80,219 615,502 180,904
NET ASSETS:
Beginning of year 3,012,818 10,772,260 2,517,510 1,967,125 919,523
=================================================================
End of year $ 6,103,610 $15,637,847 $ 2,597,729 $ 2,582,627 $ 1,100,427
=================================================================
</TABLE>
The accompanying notes to financial statements are an
integral part of these statements.
-3-
<PAGE>
<TABLE>
Page 2 of 3
IOMEGA RETIREMENT AND INVESTMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1998
<CAPTION>
FUND INFORMATION
-----------------------------------------------------------------------------------
FIDELITY FUNDS
-----------------------------------------------------------------------------------
Spartan U.S. Real Estate
Equity Asset Equity Diversified Export and Investment
Income II Manager Index International Multinational Portfolio
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS
ATTRIBUTABLE TO:
Contributions
Employee $ 630,733 $ 299,407 $ 764,674 $ 97,102 $ 69,510 $ 54,555
Employer 313,241 133,254 388,209 53,483 43,136 26,843
Rollover 281,941 224,585 312,915 98,849 79,705 228,661
-----------------------------------------------------------------------------------
1,225,915 657,246 1,465,798 249,434 192,351 310,059
Investment Income
Interest and dividends 508,999 399,721 91,464 12,560 6,278 8,489
Realized gain (loss) 55,006 22,308 123,672 (1,010) (2,712) (14,294)
Net unrealized
appreciation
(depreciation) in fair
value of investments 407,801 (144,387) 646,634 2,372 22,607 (29,374)
-----------------------------------------------------------------------------------
Total additions
(reductions) 971,806 277,642 861,770 13,922 26,173 (35,179)
REDUCTIONS IN NET ASSETS
ATTRIBUTABLE TO:
Distributions to
participants (259,257) (185,324) (201,057) (3,647) (3,918) (20,606)
TRANSFERS BETWEEN FUNDS 417,099 268,037 574,059 111,813 52,797 (61,311)
-----------------------------------------------------------------------------------
Net additions
(reductions) 2,355,563 1,017,601 2,700,570 371,522 267,403 192,963
NET ASSETS:
Beginning of year 3,766,322 1,390,790 2,642,543 - - -
====================================================================================
End of year $ 6,121,885 $ 2,408,391 $ 5,343,113 $ 371,522 $ 267,403 $ 192,963
====================================================================================
</TABLE>
The accompanying notes to financial statements are an
integral part of these statements.
-4-
<PAGE>
<TABLE>
Page 3 of 3
IOMEGA RETIREMENT AND INVESTMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1998
FUND INFORMATION
------------------------------------------------------------------------
FIDELITY FUNDS
-----------------------------
U.S. Government U.S. Iomega Participant
Reserves Bond Index Stock Fund Loans Total
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS
ATTRIBUTABLE TO:
Contributions
Employee $ - $ 49,227 $ 982,009 $ - $ 5,594,773
Employer - 36,294 370,033 - 2,741,420
Rollover - 61,902 278,973 - 3,963,978
------------------------------------------------------------------------
- 147,423 1,631,015 - 12,300,171
Investment Income
Interest and dividends 38 17,947 - 82,190 2,790,163
Realized gain (loss) - 4,179 (4,658,889) - (3,864,972)
Net unrealized appreciation
(depreciation) in fair
value of investments - 2,522 (92,266) - 3,562,618
------------------------------------------------------------------------
Total additions
(reductions) 38 24,648 (4,751,155) 82,190 2,487,809
REDUCTIONS IN NET ASSETS
ATTRIBUTABLE TO:
Distributions to - (6,251) (402,470) (309,373) (4,224,059)
participants
TRANSFERS BETWEEN FUNDS 5,000 329,688 (1,765,711) (159,747) -
------------------------------------------------------------------------
Net additions
(reductions) 5,038 495,508 (5,288,321) (386,930) 10,563,921
NET ASSETS:
Beginning of year - - 12,953,605 1,194,970 41,137,466
=========================================================================
End of year $ 5,038 $ 495,508 $ 7,665,284 $ 808,040 $51,701,387
=========================================================================
</TABLE>
The accompanying notes to financial statements are an
integral part of these statements.
-5-
<PAGE>
- 11 -
IOMEGA RETIREMENT AND INVESTMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(1) PLAN DESCRIPTION
Participation
Iomega Corporation ("Iomega") adopted the Iomega Retirement and Investment
Savings Plan (the "Plan") effective July 1, 1985. The Plan was established to
provide employees an opportunity to accumulate funds for retirement or
disability and to provide death benefits for employees' dependents and
beneficiaries.
Effective January 1, 1995, Fidelity Management Trust Company was appointed as
trustee of the Plan. Iomega administers the Plan with the assistance of an
external administrative consultant.
The following description of the Plan provides only general information.
Participants should refer to the Plan document for a more complete description
of the Plan's provisions.
Eligibility, Contributions and Benefits
Employees who have completed thirty days of service, who have attained 21 years
of age and who are scheduled to work a minimum of 1,000 hours per year are
eligible to participate in the Plan. Each eligible employee is required to make
an election to participate in the Plan. At that time, each participant elects
both the contribution amount and its distribution to the various investment
funds within the Plan. Elected contribution percentages can range from 2 percent
to 15 percent of qualifying gross compensation on a before-tax basis, subject to
Internal Revenue Service ("IRS") limitations.
Effective January 1, 1998, Iomega amended the Plan to change the employer
matching contributions and vesting rights. Employer matching contributions were
changed to consist of a basic match of up to $600 per participant, an additional
basic match of 50 percent of a participants contributions over $600 up to 5
percent of eligible earnings, and a discretionary performance match with a range
from 0 percent to 3 percent of eligible earnings, subject to limits imposed by
the IRS. The discretionary performance match is based on Company profitability
goals and the match percent is determined annually by the Company's Board of
Directors. There was no performance matching contribution for 1998. The employer
contributions for the basic match and the additional basic match for 1998 were
$718,542 and $2,022,878, respectively. Participants vest in all matching
contributions at a rate of 25 percent for each year of service. After four years
of service, employees become immediately vested in all matching contributions.
Benefits are normally paid upon retirement, death, disability or other
termination. Upon termination of service, participants may elect to receive
payment from their accounts in a lump sum, periodic installments, an annuity or
a combination of these methods. Actively employed participants may only withdraw
funds from the Plan pursuant to specific restrictions set forth in the Plan
agreement.
-6-
<PAGE>
Investment Options
The Plan provides for fifteen investment options. These options, as well as the
number of participants at December 31, 1998 investing in each option, are as
follows:
<TABLE>
<CAPTION>
Number of
Fund Participants
------------------------------------------------ -------------
<S> <C>
Magellan 665
Contrafund 875
Managed Income Portfolio 287
Retirement Money Market Portfolio 290
Short-Term Bond Portfolio 157
Equity Income II 582
Asset Manager 294
Spartan U.S. Equity Index Portfolio 535
Diversified International 117
Export and Multinational 111
Real Estate Investment Portfolio 77
U.S. Government Reserves 1
U.S. Bond Index 94
Iomega Stock 752
Participant Loans 151
</TABLE>
The Participant Loan Fund is managed by Iomega and the remaining 14 funds are
managed by the Fidelity Management & Research Company ("Fidelity"), an affiliate
of Fidelity Management Trust Company. No sales charge is levied on the funds
managed by Fidelity, however, an annual fee is charged by Fidelity to cover the
operating expenses of each fund, including the investment advisory fee. This fee
is deducted from the investment return of each fund. Participants are charged a
loan setup fee and a maintenance fee for each loan borrowed under the Plan.
The Magellan Fund seeks capital appreciation by maintaining a portfolio
primarily invested in common stocks and securities convertible into common
stocks. Up to 20 percent of this fund may also be invested in debt securities of
all types and quality levels issued by domestic and foreign issuers. The fund is
relatively aggressive in pursuing growth. Dividends are declared and posted to
the participant's account in May and December of each calendar year. The
undistributed semi-annual dividends are reinvested to purchase additional shares
in the fund.
The Contrafund seeks capital appreciation by investing in companies that are
believed to be undervalued or out of favor. When market conditions warrant, the
fund may also invest temporarily in investment-grade debt securities. The fund
is relatively aggressive in pursuing growth.
The Managed Income Portfolio seeks preservation of capital and a competitive
level of income over time. The portfolio purchases high-quality, short and
long-term investment contracts issued by insurance companies, banks and other
approved financial institutions that provide competitive interest rates. The
Managed Income Portfolio's goal is to maintain a stable $1.00 share price.
-7-
<PAGE>
The Retirement Money Market Portfolio invests in high-quality money market
instruments of domestic and foreign issuers which are denominated in U.S.
dollars. Such instruments are short-term obligations and range from U.S.
Government securities to prime commercial paper issued by private borrowers. The
fund seeks to obtain as high a level of current income as possible, given its
principal objective of preserving capital and maintaining a share value of
$1.00. Interest income is earned daily and posted to the participant's account
at the end of each calendar month or at the time of total distribution of the
account. The monthly income is applied to purchase additional shares in the
fund.
The Short-Term Bond Portfolio invests in a broad range of fixed-income
securities. Securities in the portfolio are primarily investment grade or better
with maturities typically less than three years. The portfolio seeks high
current income consistent with preservation of capital.
The Equity Income II Fund seeks income by investing primarily in
income-producing equity securities, considering the potential for capital
appreciation. The fund seeks a yield exceeding the Standard & Poor's Daily Stock
Price Index 500 ("S&P 500"). The fund is considered to be relatively
conservative among growth and income funds.
Asset Manager seeks high total return with reduced risk over the long term by
using a balanced mix of stocks, bonds and short-term instruments. The fund earns
dividends daily, and the dividends are posted to the participant's account in
the last month of each calendar quarter or at the time of total distribution of
the account. The undistributed dividends are reinvested to purchase more shares
in the fund.
The Spartan U.S. Equity Index Portfolio has the goal of replicating the total
return provided by the stocks included in the S&P 500. The fund buys and holds
virtually all of the 500 stocks contained in the S&P 500 weighted in the same
manner. The fund earns dividends daily, and the dividends are posted to the
participant's account in the last month of each calendar quarter or at the time
of total distribution of the account. The undistributed dividends are reinvested
to purchase more shares in the fund.
The Diversified International Fund seeks capital appreciation by investing
primarily in stocks of large companies located outside the U.S. that are
considered to be undervalued and are included in the Morgan Stanley Capital
International Europe, Australia, Far East Index ("EAFE").
The Export and Multinational Fund seeks capital appreciation by investing
primarily in stocks of U.S. companies that are expected to benefit from
exporting or selling goods or services outside the U.S. The fund may also invest
in foreign securities.
The Real Estate Investment Portfolio seeks to provide an above-average level of
income as well as capital growth by investing primarily in stocks of domestic
and foreign companies in the real estate industry. The fund seeks to provide a
yield that exceeds that of the S&P 500. The fund is sensitive to conditions in
the real estate industry, such as real estate values, property taxes,
overbuilding and interest rates.
The U.S. Government Reserve Fund invests in U.S. Government securities as well
as entering into reverse repurchase agreements. The fund seeks as high a level
of current income as is consistent with security of principal and liquidity. The
U.S. Government Reserve Fund seeks to preserve the share value of $1.00. The
rate of income varies from day to day, generally reflecting changes in
short-term interest rates.
-8-
<PAGE>
The U.S. Bond Index Fund seeks to provide investment results that correspond to
the aggregate price and interest performance of the debt securities in the
Lehman Brothers Aggregate Bond Index. The fund's investments include U.S.
Treasury and U.S. government securities, corporate bonds, asset-backed and
mortgage-backed securities and U.S. dollar denominated foreign securities with
maturities of at least one year and an investment-grade of medium to high
quality or above.
The Iomega Stock Fund invests only in Iomega common stock. A small amount of the
Iomega Stock Fund (approximately 1 to 2 percent) is held in cash to meet the
Plan's liquidity needs for making distributions and transfers. Shares of Iomega
stock are bought and sold over-the-counter each pay period based on
participants' elections. Voting rights for the common stock held in the Iomega
Stock Fund are passed through to participants. The market value of the Iomega
Stock Fund is determined based on unitized stock accounting.
The Participant Loan Fund is invested solely in promissory notes executed by
participants. With the Plan's consent, a participant may borrow from his or her
account up to the lesser of $50,000 or 50 percent of the participant's vested
interest. The outstanding balance of all prior loans under the Plan or any other
plan maintained by Iomega or its affiliates reduces the amount available for
future loans. Moreover, the $50,000 limit is reduced by the amount of any loan
repayments made during the most recent 12 months. The minimum amount for any
loan is $1,000. As of December 31, 1998, the loans bear interest at rates
ranging from 7.52 to 10.0 percent. Loans must be repaid within five years,
except for loans used to acquire a principal residence which must be repaid over
a reasonable period of time not to exceed 10 years. All loans, regardless of
term, become due and payable when the participant's employment terminates.
Termination of the Plan
Iomega may terminate the Plan at any time subject to the provisions of the
Employee Retirement Income Security Act of 1974, as amended.
(2) SUMMARY OF ACCOUNTING POLICIES
Basis of Accounting
The accounting records of the Plan are maintained on the accrual basis in
accordance with generally accepted accounting principles. Distributions to
participants are recorded when paid.
Investments
Contributions are invested in various securities. Participants direct the
trustee as to the investment of all contributions. Investments are carried at
fair value based on quoted market prices. Unrealized appreciation or
depreciation caused by fluctuations in the fair value of investments is
recognized currently. Interest and dividends are reinvested as earned.
-9-
<PAGE>
Distributions to Terminated Participants and Forfeitures
During the year ended December 31, 1998, some participants terminated from the
Plan. Participants terminating prior to retirement that have a vested benefit
balance in excess of $5,000 may leave their vested benefits in the Plan. The
Plan provides for the distribution of vested benefits to terminated participants
no later than April 1 following the calendar year in which the participant
attained age 70 1/2. During the year ended December 31, 1998, vested benefits
distributed to terminated participants were $4,224,059. Nonvested benefits which
are forfeited are utilized to reduce the Company contributions to the Plan and
have been reallocated to continuing participants. During the year ended December
31, 1998, forfeitures reallocated totaled $39,281.
Expenses
Iomega pays all administrative expenses relating to investment and management of
Plan funds, including legal and accounting fees, except operating expenses of
the investment funds which are deducted directly from investment returns by
Fidelity (as noted in "Investment Options").
(3) NET UNREALIZED APPRECIATION (DEPRECIATION) IN FAIR MARKET VALUE OF
INVESTMENTS
The Plan provides that the fair value of all investments shall be determined at
the end of each Plan year. Net unrealized appreciation or depreciation in the
fair value of investments is determined by computing the difference between the
fair value of each investment at the beginning of the Plan year (or at the date
of purchase for investments acquired during the Plan year) with the fair market
value at the end of the Plan year.
(4) TAX STATUS
The Plan is subject to the Employee Retirement Income Security Act of 1974
("ERISA") and certain provisions of the Internal Revenue Code ("IRC"). The Plan
is intended to qualify under Section 401(a) of the IRC. The Internal Revenue
Service issued a favorable determination letter dated October 26, 1994 ruling
that the Plan was designed in accordance with applicable IRC requirements as of
that date. The Plan's steering committee and legal counsel believe that the Plan
continues to be designed and operated in accordance with applicable IRC
requirements. The Plan does not provide for federal income taxes as the
qualified plan trust is exempt from income taxes.
-10-
<PAGE>
<TABLE>
IOMEGA RETIREMENT AND INVESTMENT SAVINGS PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1998
<CAPTION>
(c) Number of
(a) (b) Issuer/Investment Type Units Held (d) Cost (e) Current Value
- --------- ----------------------------------- -------------- ----------- -----------------
<S> <C> <C> <C> <C>
Fidelity Management
Trust Company:
* Magellan 46,324 $ 4,238,433 $ 5,596,855
* Contrafund 264,427 9,453,607 15,016,801
* Managed Income 2,506,569 2,506,569 2,506,569
* Retirement Money Market 2,406,567 2,406,567 2,406,567
* Short-Term Bond 120,015 1,089,517 1,045,328
* Equity Income II 192,968 4,326,047 5,790,978
* Asset Manager 130,371 2,071,955 2,267,149
* Spartan U.S. Equity Index 112,197 3,540,388 4,932,187
* Diversified International 17,952 316,750 318,112
* Export and Multinational 11,330 205,340 225,235
* Real Estate Investment Portfolio 10,687 209,737 166,069
* U.S. Government Reserves 5,038 5,038 5,038
* U.S. Bond Index 41,398 449,505 456,206
* Iomega Stock Fund 1,112,125 3,060,533 7,275,479
* Participant Loans Interest rates
ranging from
7.52% to 10.0%
808,040 808,040
=========== =================
$34,688,026 $ 48,816,613
=========== =================
*Denotes party-in-interest
</TABLE>
-11-
<PAGE>
<TABLE>
Page 1 of 2
IOMEGA RETIREMENT AND INVESTMENT SAVINGS PLAN
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
<CAPTION>
Number (c) (d) (e)
(a) Identity of (b) Description of Trans- Purchase Selling Lease
Party Involved of Asset actions Price Price Rental
---------------------------- --------------------- ---------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Fidelity Investments 121,175 shares 221 $ 6,306,547 $ - N/A
Institutional Services Co.* of Contrafund
Fidelity Investments 79,503 shares 163 - 4,056,328 N/A
Institutional Services Co.* of Contrafund
Fidelity Investments 95,860 shares 194 2,760,285 - N/A
Institutional Services Co.* of Equity Income II
Fidelity Investments 35,896 shares 128 - 1,024,553 N/A
Institutional Services Co.* of Equity Income II
Fidelity Investments 40,496 shares 209 4,322,806 - N/A
Institutional Services Co.* of Magellan
Fidelity Investments 23,889 shares 141 - 2,531,866 N/A
Institutional Services Co.* of Magellan
Fidelity Investments 222,435 shares 229 9,100,248 - N/A
Institutional Services Co.* of Iomega Stock
Fund
Fidelity Investments 222,972 shares 187 - 9,641,407 N/A
Institutional Services Co.* of Iomega Stock
Fund
Fidelity Investments 2,574,048 units 170 2,574,048 - N/A
Institutional Services Co.* of Retirement
Money Market
Fidelity Investments 2,060,493 units 127 - 2,060,493 N/A
Institutional Services Co.* of Retirement
Money Market
Fidelity Investments 85,256 units of Asset 134 1,583,673 - N/A
Institutional Services Co.* Manager
Fidelity Investments 26,104 units of Asset 80 - 501,310 N/A
Institutional Services Co.* Manager
Fidelity Investments 2,079,482 units of 130 2,079,482 - N/A
Institutional Services Co.* Managed Income
Fidelity Investments 2,024,521 units of 93 - 2,024,521 N/A
Institutional Services Co.* Managed Income
Fidelity Investments 91,111 shares of 193 3,547,949 - N/A
Institutional Services Co.* Spartan U.S. Equity
Index
Fidelity Investments 49,946 shares of 104 - 1,870,800 N/A
Institutional Services Co.* Spartan U.S. Equity
Index
Fidelity Investments 173,660 shares of 123 1,901,950 - N/A
Institutional Services Co.* U.S. Bond Index
Fidelity Investments 132,262 shares of 42 - 1,452,445 N/A
Institutional Services Co.* U.S. Bond Index
*Denotes party-in-interest
</TABLE>
-12-
<PAGE>
<TABLE>
Page 2 of 2
IOMEGA RETIREMENT AND INVESTMENT SAVINGS PLAN
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
(f) Expense (h) Current
Incurred Value at
(a) Identity of (b) Description With (g) Cost Transaction (i) Net
Party Involved of Asset Transaction of Asset Date Gain (Loss)
--------------------------- --------------------- ----------- ----------- ----------- ----------------
<S> <C> <C> <C> <C> <C>
Fidelity Investments 121,175 shares N/A $ 6,306,547 $ 6,306,547 $ N/A
Institutional Services Co.* of Contrafund
Fidelity Investments 79,503 shares N/A 3,533,481 4,056,328 522,847
Institutional Services Co.* of Contrafund
Fidelity Investments 95,860 shares N/A 2,760,285 2,760,285 N/A
Institutional Services Co.* of Equity Income II
Fidelity Investments 35,896 shares N/A 912,797 1,024,553 111,756
Institutional Services Co.* of Equity Income II
Fidelity Investments 40,496 shares N/A 4,322,806 4,322,806 N/A
Institutional Services Co.* of Magellan
Fidelity Investments 23,889 shares N/A 2,429,643 2,531,866 102,223
Institutional Services Co.* of Magellan
Fidelity Investments 222,435 shares N/A 9,100,248 9,100,248 N/A
Institutional Services Co.* of Iomega Stock
Fund
Fidelity Investments 222,972 shares N/A 9,720,280 9,641,407 (78,873)
Institutional Services Co.* of Iomega Stock
Fund
Fidelity Investments 2,574,048 units N/A 2,574,048 2,574,048 N/A
Institutional Services Co.* of Retirement
Money Market
Fidelity Investments 2,060,493 units N/A 2,060,493 2,060,493 -
Institutional Services Co.* of Retirement
Money Market
Fidelity Investments 85,256 units of Asset N/A 1,583,673 1,583,673 N/A
Institutional Services Co.* Manager
Fidelity Investments 26,104 units of Asset N/A 463,212 501,310 38,098
Institutional Services Co.* Manager
Fidelity Investments 2,079,482 units of N/A 2,079,482 2,079,482 N/A
Institutional Services Co.* Managed Income
Fidelity Investments 2,024,521 units of N/A 2,024,521 2,024,521 -
Institutional Services Co.* Managed Income
Fidelity Investments 91,111 shares of N/A 3,547,949 3,547,949 N/A
Institutional Services Co.* Spartan U.S. Equity
Index
Fidelity Investments 49,946 shares of N/A 1,794,534 1,870,800 76,266
Institutional Services Co.* Spartan U.S. Equity
Index
Fidelity Investments 173,660 shares of N/A 1,901,950 1,901,950 N/A
Institutional Services Co.* U.S. Bond Index
Fidelity Investments 132,262 shares of N/A 1,448,312 1,452,445 4,133
Institutional Services Co.* U.S. Bond Index
*Denotes party-in-interest
</TABLE>
-13-
<PAGE>
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934,
the trustees (or other persons that administer the employee benefit plan) have
duly caused this annual report to be signed on behalf of the undersigned
hereunto duly authorized, in the City of Roy, Utah, on the 23rd day of June
1999.
IOMEGA RETIREMENT AND
INVESTMENT SAVINGS PLAN
By: /S/ Kevin O'Connor
-------------------------------
Kevin O'Connor
Vice President, Human Resources
<PAGE>
EXHIBIT INDEX
The following exhibits are filed as part of this Annual Report on Form 11-K.
Exhibit
Number Description
- ------------ ---------------------------------
23.1 Consent of Arthur Andersen LLP
EXHIBIT 23.1
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation of our
report included in this Form 11-K, into the Company's previously filed
Registration Statement on Form S-8 File No. 33-62029.
/S/ ARTHUR ANDERSEN LLP
- --------------------------------------
ARTHUR ANDERSEN LLP
Salt Lake City, Utah
June 22, 1999
