SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------------------------------------
FORM 11-K
X ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1997
OR
TRANSITION REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
-----------------------------------------------------
Full title of the Plan:
GATX CORPORATION SALARIED EMPLOYEES RETIREMENT SAVINGS PLAN
Name of the issuer of the securities held pursuant to the Plan and the address
of its principal executive office:
GATX Corporation
500 West Monroe Street, Chicago, Illinois 60661-3676
(312) 621-6200
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees have duly caused this annual report to be signed by the undersigned
thereunto duly authorized.
GATX CORPORATION SALARIED
EMPLOYEES RETIREMENT SAVINGS PLAN
(Name of Plan)
By: /s/ James Conniff
---------------------------
James Conniff
Plan Administrator
Dated: June 26, 1998
-1-
<PAGE>
GATX CORPORATION SALARIED EMPLOYEES RETIREMENT SAVINGS PLAN
INDEX TO FINANCIAL STATEMENTS FOR ANNUAL REPORT ON FORM 11-K
December 31, 1997
The following financial data are submitted herewith:
Report of Independent Auditors .............................................3
Consent of Independent Auditors ............................................4
Statements of Financial Condition, with Fund Information ...................5
Statements of Income and Changes in Participants' Equity,
with Fund Information....................................................7
Notes to Financial Statements .............................................10
All schedules have been omitted because the information required therein is
included in the financial statements and notes thereto.
-2-
<PAGE>
REPORT OF INDEPENDENT AUDITORS
Employee Benefits Committee
GATX Corporation
We have audited the accompanying statements of financial condition of GATX
Corporation Salaried Employees Retirement Savings Plan as of December 31, 1997
and 1996, and the related statements of income and changes in participants'
equity for each of the three years in the period ended December 31, 1997. These
financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of GATX Corporation Salaried
Employees Retirement Savings Plan at December 31, 1997 and 1996, and the income
and changes in participants' equity for years then ended, in conformity with
generally accepted accounting principles.
The Fund Information in the statements of financial condition and the statements
of income and changes in participants' equity is presented for purposes of
additional analysis rather than to present the financial condition and income
and changes in participants' equity of each fund. The Fund Information has been
subjected to the auditing procedures applied in our audits of the basic
financial statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
ERNST & YOUNG LLP
Chicago, Illinois
May 20, 1998
-3-
<PAGE>
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the following: (i) Registration
Statement No. 2-92404 on Form S-8, filed July 26, 1984 and (ii) Registration
Statement No. 33-41007 on Form S-8 filed June 7, 1991, pertaining to the GATX
Corporation Salaried Employees Retirement Savings Plan, of our report dated
May 20, 1998 with respect to the financial statements of GATX Corporation
Salaried Employees Retirement Savings Plan included in this Annual Report on
Form 11-K for the year ended December 31, 1997.
ERNST & YOUNG LLP
Chicago, Illinois
June 23, 1998
-4-
<PAGE>
<TABLE>
<CAPTION>
GATX CORPORATION SALARIED EMPLOYEES RETIREMENT SAVINGS PLAN
STATEMENT OF FINANCIAL CONDITION, WITH FUND INFORMATION
December 31, 1997
FUND INFORMATION
----------------
GATX Fidelity Phillips
Managed Stock Spartan Petroleum Dreyfus
Income Fund U.S. Equity Fidelity Putnam Company New
Fund (Note D) Index Fund Puritan Voyager Securities Leaders
-------- -------- -------------- ------- ------- ---------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at Current Value - Note C:
Bankers Trust Pyramid GIC Fund $12,642,493
GATX Corporation Stock Fund $56,249,309
Fidelity U.S. Equity Index Fund $23,563,086
Fidelity Puritan Fund $8,444,699
Fidelity Managed Income Portfolio II 11,540,501
Putnam Voyager Fund $14,074,452
Phillips Petroleum Company
Common Stock $51,950
Dreyfus New Leaders Fund $987,859
Fidelity Equity Income Fund
Templeton Foreign Fund I
--------------------------------------------------------------------------------------------
Subtotal 24,182,994 56,249,309 23,563,086 8,444,699 14,074,452 51,950 $987,859
Loans to Participants
Cash 992,335
--------------------------------------------------------------------------------------------
TOTAL ASSETS $25,175,329 $56,249,309 $23,563,086 $8,444,699 $14,074,452 $51,950 $987,859
=========== =========== =========== ========== =========== ======= ========
PARTICIPANTS' EQUITY $25,175,329 $56,249,309 $23,563.086 $8,444,699 $14,074,452 $51,950 $987,859
=========== =========== =========== ========== =========== ======= ========
<FN>
See notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GATX CORPORATION SALARIED EMPLOYEES RETIREMENT SAVINGS PLAN
STATEMENT OF FINANCIAL CONDITION, WITH FUND INFORMATION
December 31, 1997
(CONTINUED)
FUND INFORMATION
----------------
Fidelity Templeton
Equity Foreign Employee
Income Fund I Loans Total
-------- ---------- --------- --------
<S> <C> <C> <C> <C>
ASSETS
Investments at Current Value - Note C:
Bankers Trust Pyramid GIC Fund $12,642,493
GATX Corporation Stock Fund 56,249,309
Fidelity U.S. Equity Index Fund 23,563,086
Fidelity Puritan Fund 8,444,699
Fidelity Managed Income Portfolio II 11,540,501
Putnam Voyager Fund 14,074,452
Phillips Petroleum Company
Common Stock 51,950
Dreyfus New Leaders Fund 987,859
Fidelity Equity Income Fund $3,238,274 3,238,274
Templeton Foreign Fund I $1,710,579 1,710,579
-----------------------------------------------------
Subtotal 3,238,274 1,710,579 132,503,202
Loans to Participants $4,189,433 4,189,433
Cash 992,335
-----------------------------------------------------
TOTAL ASSETS $3,238,274 $1,710,579 $4,189,433 $137,684,970
=====================================================
PARTICIPANTS' EQUITY $3,238,274 $1,710,579 $4,189,433 $137,684,970
=====================================================
<FN>
See notes to financial statements.
</FN>
</TABLE>
-5-
<PAGE>
<TABLE>
<CAPTION>
GATX CORPORATION SALARIED EMPLOYEES RETIREMENT SAVINGS PLAN
STATEMENT OF FINANCIAL CONDITION, WITH FUND INFORMATION
December 31, 1996
FUND INFORMATION
----------------
GATX Fidelity Phillips
Managed Stock U.S. Equity Petroleum Dreyfus
Income Fund Index Fidelity Putnam Company New
Fund (Note D) Fund Puritan Voyager Securities Leaders
-------- -------- -------- ------- ------- ---------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at Current Value - Note C:
Bankers Trust Pyramid GIC Fund $15,842,715
GATX Corporation Stock Fund $37,137,923
Fidelity U.S. Equity Index Fund $16,716,969
Fidelity Puritan Fund $6,474,184
Fidelity Managed Income Portfolio II 10,691,485
Putnam Voyager Fund $12,056,221
Phillips Petroleum Company
Common Stock $47,276
Dreyfus New Leaders Fund $362,975
Fidelity Equity Income Fund
Templeton Foreign Fund I
-------------------------------------------------------------------------------------------
Subtotal 26,534,200 37,137,923 16,716,969 6,474,184 12,056,221 47,276 362,975
Loans to Participants
Cash 1,199,484
------------------------------------------------------------------------------------------
TOTAL ASSETS $27,733,684 $37,137,923 $16,716,969 $6,474,184 $12,056,221 $47,276 $362,975
=========== =========== =========== ========== =========== ======= ========
PARTICIPANTS' EQUITY $27,733,684 $37,137,923 $16,716,969 $6,474,184 $12,056,221 $47,276 $362,975
=========== =========== =========== ========== =========== ======= ========
<FN>
See notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GATX CORPORATION SALARIED EMPLOYEES RETIREMENT SAVINGS PLAN
STATEMENT OF FINANCIAL CONDITION, WITH FUND INFORMATION
December 31, 1996
(Continued)
FUND INFORMATION
----------------
Fidelity Templeton
Equity Foreign Employee
Income Fund I Loans Total
-------- -------- -------- ---------
<S> <C> <C> <C> <C>
ASSETS
Investments at Current Value - Note C:
Bankers Trust Pyramid GIC Fund $15,842,715
GATX Corporation Stock Fund 37,137,923
Fidelity U.S. Equity Index Fund 16,716,969
Fidelity Puritan Fund 6,474,184
Fidelity Managed Income Portfolio II 10,691,485
Putnam Voyager Fund 12,056,221
Phillips Petroleum Company
Common Stock 47,276
Dreyfus New Leaders Fund 362,975
Fidelity Equity Income Fund $545,109 545,109
Templeton Foreign Fund I $558,530 558,530
--------------------------------------------------------
Subtotal 545,109 558,530 100,433,387
Loans to Participants $4,218,169 4,218,169
Cash 1,199,484
-------------------------------------------------------
TOTAL ASSETS $545,109 $558,530 $4,218,169 $105,851,040
=======================================================
PARTICIPANTS' EQUITY $545,109 $558,530 $4,218,169 $105,851,040
=======================================================
<FN>
See notes to financial statements.
</FN>
</TABLE>
-6-
<PAGE>
<TABLE>
<CAPTION>
GATX CORPORATION SALARIED EMPLOYEES RETIREMENT SAVINGS PLAN
STATEMENT OF INCOME AND CHANGES IN PARTICIPANTS' EQUITY, WITH FUND INFORMATION
For year ended December 31, 1997
FUND INFORMATION
Fidelity Phillips
GATX Stock Spartan U.S. Petroleum Dreyfus
Managed Fund Equity Index Fidelity Putnam Company New
Income Fund (Note D) Fund Puritan Voyager Securities Leaders
----------- ---------- ------ -------- ------- ---------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
CONTRIBUTIONS &
INVESTMENT INCOME
Contributions by GATX Corporation
and subsidiaries $2,132,799
Salary deferrals by participants $1,591,346 838,652 $1,307,358 $675,891 $1,359,919 $143,090
Rollover contributions by
participants 268,887 93,231 174,570 104,981 159,668 32,211
Dividend income 1,383,755 520,998 647,478 833,578 84,885
Interest income 1,525,209 716
Gain on sale of investments 843,018 854,502 152,974 422,723 14,348
--------------------------------------------------------------------------------------
TOTAL CONTRIBUTIONS AND
INVESTMENT INCOME 3,385,442 5,292,171 2,857,428 1,581,324 2,775,888 274,534
--------------------------------------------------------------------------------------
Net transfers authorized by
participants (3,147,988) 55,916 1,079,216 342,192 (1,430,986) 320,556
Unrealized increase (decrease) in
current value of investments 17,354,625 4,366,486 678,743 1,653,693 $ 4,674 44,015
Withdrawals by participants (2,825,629) (3,543,334) (1,475,620) (651,934) (1,046,267) (24,258)
Loans to participants (735,284) (305,673) (313,574) (162,209) (340,462) (24,491)
Loan repayments by participants 765,104 257,681 332,181 182,399 406,365 34,528
---------------------------------------------------------------------------------------
(5,943,797) 13,819,215 3,988,689 389,191 (757,657) 4,674 350,350
--------------------------------------------------------------------------------------
Increase / (Decrease) in
Participants' Equity (2,558,355) 19,111,386 6,846,117 1,970,515 2,018,231 4,674 624,884
--------------------------------------------------------------------------------------
Participants' Equity
January 1, 1997 27,733,684 37,137,923 16,716,969 6,474,184 12,056,221 47,276 362,975
--------------------------------------------------------------------------------------
Participants' Equity
December 31, 1997 $25,175,329 $56,249,309 $23,563,086 $8,444,699 $14,074,452 $51,950 $987,859
======================================================================================
<FN>
See notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GATX CORPORATION SALARIED EMPLOYEES RETIREMENT SAVINGS PLAN
STATEMENT OF INCOME AND CHANGES IN PARTICIPANTS' EQUITY, WITH FUND INFORMATION
For year ended December 31, 1997
(CONTINUED)
FUND INFORMATION
Fidelity Templeton
Equity Foreign Employee
Income Fund I Loans Total
----------- --------- ------ --------
<S> <C> <C> <C> <C>
CONTRIBUTIONS &
INVESTMENT INCOME
Contributions by GATX Corporation
and subsidiaries $2,132,799
Salary deferrals by participants, $303,396 $214,107 6,433,759
Rollover contributions by
participants 65,771 36,096 935,415
Dividend income 147,960 184,973 3,803,627
Interest income 359,804 1,885,729
Gain on sale of investments 22,187 12,368 2,322,120
---------------------------------------------------
TOTAL CONTRIBUTIONS AND
INVESTMENT INCOME 539,314 447,544 359,804 17,513,449
---------------------------------------------------
Net transfers authorized by
participants 1,926,571 854,523
Unrealized increase (decrease) in
current value of investments 365,185 (155,700) 24,311,721
Withdrawals by participants (179,512) (48,779) (195,907) (9,991,240)
Loans to participants (43,085) (16,222) 1,941,000
Loan repayments by participants 84,692 70,683 (2,133,633)
----------------------------------------------------
2,153,851 704,505 (388,540) 14,320,481
----------------------------------------------------
Increase / (Decrease) in
Participants' Equity 2,693,165 1,152,049 (28,736) 31,833,930
----------------------------------------------------
Participants' Equity
January 1, 1997 545,109 558,530 4,218,169 105,851,040
----------------------------------------------------
Participants' Equity
December 31, 1997 $3,238,274 $1,710,579 $4,189,433 $137,684,970
====================================================
<FN>
See notes to financial statements.
</FN>
</TABLE>
-7-
<PAGE>
<TABLE>
<CAPTION>
GATX CORPORATION SALARIED EMPLOYEES RETIREMENT SAVINGS PLAN
STATEMENT OF INCOME AND CHANGES IN PARTICIPANTS' EQUITY, WITH FUND INFORMATION
For year ended December 31, 1996
FUND INFORMATION
Phillips
GATX Stock Fidelity U.S. Petroleum Dreyfus
Managed Fund Equity Index Fidelity Putnam Company New
Income Fund (Note D) Fund Puritan Voyager Securities Leaders
----------- ---------- ----- ------- ------- ---------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
CONTRIBUTIONS &
INVESTMENT INCOME
Contributions by GATX Corporation
and subsidiaries $2,103,151
Salary deferrals by participants $2,105,676 1,006,192 $1,187,839 $678,222 $1,375,381 $19,026
Rollover contributions by
participants 149,773 177,866 298,355 258,715 204,200
Dividend income 1,303,065 415,459 729,477 761,739 23,239
Interest income 1,719,756 668
Gain on sale of investments 507,013 266,203 21,959 294,525 472
----------------------------------------------------------------------------------------------
TOTAL CONTRIBUTIONS AND
INVESTMENT INCOME 3,975,205 5,097,955 2,167,856 1,688,373 2,635,845 42,737
----------------------------------------------------------------------------------------------
Net transfers authorized by
participants (4,876,158) (1,362,375) 1,111,927 862,364 2,986,256 326,854
Unrealized increase (decrease) in
current value of investments (660,138) 2,313,807 52,638 (26,627) $6,188 (10,698)
Withdrawals by participants (3,412,863) (3,016,306) (767,391) (392,595) (778,866)
Loans to participants (1,157,833) (324,573) (367,057) (166,514) (406,987)
Loan repayments by participants 786,000 258,399 256,169 149,757 413,098 4,082
----------------------------------------------------------------------------------------------
(8,660,854) (5,104,993) 2,547,455 505,650 2,186,874 6,188 320,238
----------------------------------------------------------------------------------------------
Increase / (Decrease) in
Participants' Equity (4,685,649) (7,038) 4,715,311 2,194,023 4,822,719 6,188 362,975
----------------------------------------------------------------------------------------------
Participants' Equity
January 1, 1996 32,419,333 37,144,961 12,001,658 4,280,161 7,233,502 41,088 -
----------------------------------------------------------------------------------------------
Participants' Equity
December 31, 1996 $27,733,684 $37,137,923 $16,716,969 $6,474,184 $12,056,221 $47,276 $362,975
==============================================================================================
<FN>
See notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GATX CORPORATION SALARIED EMPLOYEES RETIREMENT SAVINGS PLAN
STATEMENT OF INCOME AND CHANGES IN PARTICIPANTS' EQUITY, WITH FUND INFORMATION
For year ended December 31, 1996
(CONTINUED)
FUND INFORMATION
Fidelity Templeton
Equity Foreign Employee
Income Fund I Loans Total
----------- ---------- ----- -------
<S> <C> <C> <C> <C>
CONTRIBUTIONS &
INVESTMENT INCOME
Contributions by GATX Corporation
and subsidiaries $2,103,151
Salary deferrals by participants $17,256 $34,155 6,423,747
Rollover contributions by
participants 32,599 1,121,508
Dividend income 17,112 17,758 3,267,849
Interest income 241,779 1,962,203
Gain on sale of investments 672 336 1,091,180
------------------------------------------------------
TOTAL CONTRIBUTIONS AND
INVESTMENT INCOME 67,639 52,249 241,779 15,969,638
------------------------------------------------------
Net transfers authorized by
participants 462,373 488,759
Unrealized increase (decrease) in
current value of investments 9,436 17,818 1,702,424
Withdrawals by participants (4,234) (131,918) (8,504,173)
Loans to participants (8) (4,528) 2,427,500
Loan repayments by participants 5,669 8,466 (1,881,640)
------------------------------------------------------
477,470 506,281 413,942 (6,801,749)
------------------------------------------------------
Increase / (Decrease) in
Participants' Equity 545,109 558,530 655,721 9,167,889
------------------------------------------------------
Participants' Equity
January 1, 1996 - - 3,562,448 96,683,151
------------------------------------------------------
Participants' Equity
December 31, 1996 $545,109 $558,530 $4,218,169 $105,851,040
======================================================
<FN>
See notes to financial statements.
</FN>
</TABLE>
-8-
<PAGE>
<TABLE>
<CAPTION>
GATX CORPORATION SALARIED EMPLOYEES RETIREMENT SAVINGS PLAN
STATEMENT OF INCOME AND CHANGES IN PARTICIPANTS' EQUITY, WITH FUND INFORMATION
For year ended December 31, 1995
FUND INFORMATION
Phillips
Managed GATX Stock Fidelity Petroleum
Income Fund U.S. Equity Fidelity Putnam Company Employee
Fund (Note D) Index Puritan Voyager Securities Loans Total
--------- ------------ ----------- ---------- --------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CONTRIBUTIONS & INVESTMENT
INCOME
Contributions by GATX
Corporation and subsidiaries $ 1,994,609 $ 1,994,609
Salary deferrals by participants $2,402,476 1,078,316 $ 868,821 $ 458,612 $ 949,749 5,757,974
Rollover contributions
by participants 77,056 46,422 158,980 73,722 26,037 382,217
Dividend income 1,163,219 318,023 158,609 380,291 $ 626 2,020,768
Interest income 2,051,413 2,311 14,904 395 160 $ 444,162 2,513,345
Gain (loss) on sale
of investments - Note C (22,411) 687,223 2,615,630 551,920 78,207 3,910,569
---------- ---------- ----------- ---------- ---------- ------- ---------- -----------
TOTAL CONTRIBUTIONS
AND INVESTMENT INCOME 4,508,534 4,972,100 3,961,454 1,257,767 1,434,679 786 444,162 16,579,482
---------- ---------- ----------- ---------- ---------- ------- ---------- -----------
Net transfers
authorized by participants (1,882,684) (248,775) 708,073 500,493 922,893
Unrealized increase
in current value of investments 2,613,407 57,471 79,649 1,230,350 1,481 3,982,358
Withdrawals by participants (1,544,570) (1,056,924) (308,534) (65,167) (60,242) (3,035,437)
Loans to participants (863,045) (281,956) (193,996) (115,362) (199,715) 1,654,074
Loan repayments by participants 1,043,975 419,396 142,147 96,477 235,901 (1,937,896)
---------- ---------- ----------- ---------- ---------- ------- ---------- -----------
(3,246,324) 1,445,148 405,161 496,090 2,129,187 1,481 (283,822) 946,921
---------- ---------- ----------- ---------- ---------- ------- ---------- -----------
Increase in Participants' Equity 1,262,210 6,417,248 4,366,615 1,753,857 3,563,866 2,267 160,340 17,526,403
---------- ---------- ----------- ---------- ---------- ------- ---------- -----------
Participants' Equity at
January 1, 1995 31,157,123 30,727,713 7,635,043 2,526,304 3,669,636 38,821 3,402,108 79,156,748
----------- ----------- ----------- ---------- ---------- ------- ---------- -----------
Participants' Equity at
December 31, 1995 $32,419,333 $37,144,961 $12,001,658 $4,280,161 $7,233,502 $41,088 $3,562,448 $96,683,151
=========== =========== =========== ========== ========== ======= ========== ===========
<FN>
See notes to financial statements.
</FN>
</TABLE>
-9-
<PAGE>
GATX CORPORATION SALARIED EMPLOYEES RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
NOTE A--SIGNIFICANT ACCOUNTING POLICIES
Investments are recorded at fair value based on quoted market prices or
redemption value.
All costs and expenses incurred with regard to the purchase and sale of
investments are borne by the GATX Corporation Salaried Employees Retirement
Savings Plan (the Plan) and are included in the realized gain (loss) on sale of
investments. Administrative and general expenses are paid by GATX Corporation
(GATX or the Company).
The preparation of the financial statements in conformity with generally
accepted accounting principles necessarily requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements as well as revenues and expenses during the reporting period. Actual
amounts when ultimately realized could differ from those estimates.
NOTE B--DESCRIPTION OF THE PLAN
The Plan is a defined contribution plan and was established to afford employees
an opportunity to save systematically for retirement. The Plan is open to each
eligible salaried employee of GATX, and each of its domestic subsidiaries which
adopts or has adopted the Plan upon authorization by GATX, immediately following
the first paycheck.
A participant may contribute to the Plan from 1% to a maximum of 15% of his or
her compensation as defined by the Plan. After a participant completes six
months of service, GATX and its electing subsidiaries contribute an amount up to
but not more than 50%, as determined from time to time by GATX, of the amount
contributed by each participant but not to exceed 3% of the participant's
compensation, as defined by the Plan. Company contributions are invested in GATX
Common Stock and short-term investments. All contributions are made in cash and
deposited semi-monthly. Contributions by participants are made by means of
salary deferral and employer contributions are fully vested.
After one year of participation in the Plan, active participants may obtain
loans from the Plan. The maximum loan amount is subject to certain restrictions
and each loan is secured by the participant's account balance.
Participants may elect to have their contributions invested in the Managed
Income Fund (which is a combination of the Bankers Trust Pyramid GIC Fund and
the Fidelity Managed Income Portfolio II Fund), GATX Stock Fund, Fidelity
Spartan U.S. Equity Index Fund, Fidelity Puritan Fund, Putnam Voyager Fund,
Dreyfus New Leaders Fund, Fidelity Equity Income Fund, Templeton Foreign Fund I,
or in a combination of any of the funds in multiples of 5% in each fund
selected.
Fidelity Management Trust Company is trustee and recordkeeper.
-10-
<PAGE>
GATX CORPORATION SALARIED EMPLOYEES RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
NOTE B--DESCRIPTION OF THE PLAN (Continued)
On August 1, 1996, the plan added Fidelity Equity Income and Templeton Foreign
Fund I as investment options. On September 1, 1996, the plan added Dreyfus New
Leaders as an investment option.
Employees participating in the Plan had invested in the available funds as
follows (some having invested in more than one fund):
December 31
---------------------------
1997 1996
----- -----
Total participants 1,731 1,714
Managed Income Fund 954 1,084
GATX Stock Fund 772 759
Fidelity Spartan U.S. Equity Index Fund 1,005 905
Fidelity Puritan Fund 607 597
Putnam Voyager Fund 884 908
Dreyfus New Leaders Fund 156 70
Fidelity Equity Income Fund 271 70
Templeton Foreign Fund I 221 91
As a result of a previous acquisition by GATX, rollover contributions,
consisting of shares of common stock of Phillips Petroleum Company, were
received by the Plan in 1979. As of December 31, 1997, one employee is
participating in this Fund. Further contributions to the Fund are not allowed.
GATX intends this Plan to be permanent but reserves the right at any time to
modify, amend, or terminate this Plan, including the right to suspend or
permanently discontinue employer contributions upon 30 days prior notice to
participants or to reduce (or increase but not to more than 50%) the rate of
such contributions without notice. For the years ended December 31, 1997, 1996,
and 1995, GATX's contribution rate was 50%.
Should the Plan terminate at some future date, its net assets will be available
to provide participants their distributions in proportion to their allocable
share of the Plan assets at the date of such termination.
-11-
<PAGE>
GATX CORPORATION SALARIED EMPLOYEES RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 1997
NOTE C - INVESTMENTS
The cost of investments and number of shares or units held at December 31, 1997
and 1996 were as follows:
<TABLE>
<CAPTION>
1997 1996
------------------------------ --------------------------
Shares/Units Cost Shares/Units Cost
<S> <C> <C> <C> <C>
Bankers Trust Pyramid GIC Fund - $12,642,492 - $15,842,715
GATX Corporation Stock Fund 763,333 24,728,040 765,730 22,972,681
Fidelity Spartan U.S. Equity Index Fund 673,635 15,946,807 620,296 13,466,514
Fidelity Puritan Fund 435,744 7,623,945 375,533 6,332,146
Fidelity Managed Income Portfolio II - 11,540,501 - 10,691,485
Putnam Voyager Fund 738,828 11,203,002 747,905 10,838,251
Phillips Petroleum Company Common Stock 1,068 20,622 1,068 20,622
Dreyfus New Leaders Fund 22,274 953,790 8,910 372,908
Fidelity Equity Income Fund 61,790 2,863,800 12,727 535,673
Templeton Foreign Fund I 171,918 1,848,464 53,912 540,712
----------- -----------
$89,371,463 $81,613,707
=========== ===========
</TABLE>
-12-
<PAGE>
GATX CORPORATION SALARIED EMPLOYEES RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
NOTE C--INVESTMENTS--Continued
The realized gain (loss) on sale of investments is the difference between the
proceeds received and the average cost of investments sold, including
transaction costs, and was determined as follows:
<TABLE>
<CAPTION>
1997 1996 1995
--------------------------------- --------------------------------- -----------------------------------
Aggregate Aggregate Aggregate Aggregate Aggregate Aggregate
Proceeds Costs Gain Proceeds Costs Gain Proceeds Costs Gain/(Loss)
---------- ----------- ---------- ----------- ---------- ---------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
GATX Corporation Stock Fund $3,983,329 $ 3,140,311 $ 843,018 $ 4,165,406 $3,658,393 $ 507,013 $ 1,645,323 $ 958,100 $ 687,223
Fidelity Spartan U.S.
Equity Index 3,476,039 2,621,537 854,502 2,196,679 1,930,477 266,202 174,674 165,801 8,873
Fidelity Puritan Fund 1,563,607 1,410,633 152,974 1,321,939 1,299,979 21,960 89,362 88,536 826
Putnam Voyager Fund 3,768,562 3,345,839 422,723 2,297,315 2,002,791 294,524 269,921 191,714 78,207
Dreyfus New Leaders Fund 208,548 194,200 14,348 17,346 16,874 472 - - -
Fidelity Equity Income Fund 407,816 385,629 22,187 11,739 11,066 673 - - -
Templeton Foreign Fund I 301,297 288,929 12,368 19,568 19,232 336 - - -
Metropolitan Life Group
Annuity Contract No. 12518 9,602,685 9,625,096 (22,411)
Harris Trust and Savings Bank
Trust for Collective
Investment of Employee
Benefit Accounts:
Equity Index Fund 10,154,556 7,547,799 2,606,757
Jennison Balanced Fund 3,386,708 2,835,614 551,094
----------- ----------- ---------- ----------- ---------- ---------- ----------- ----------- ----------
$13,709,198 $11,387,078 $2,322,120 $10,029,992 $8,938,812 $1,091,180 $25,323,229 $21,412,660 $3,910,569
=========== =========== ========== =========== ========== ========== =========== =========== ==========
</TABLE>
-13-
<PAGE>
GATX CORPORATION SALARIED EMPLOYEES RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS--Continued
December 31, 1997
NOTE D--GATX FUND
The balance in the GATX Stock Fund consisted of $41,886,836 of employer matching
assets and $14,362,472 of employee contributed assets at December 31, 1997. As
of December 31, 1996, these amounts were $27,823,704 and $9,314,219
respectively. The employer matching assets cannot be transferred from the GATX
Stock Fund to other funds.
NOTE E--FEDERAL INCOME TAX STATUS
The Internal Revenue Service has issued a favorable determination letter of the
Plan's status as a qualified profit sharing plan under Sections 401(a) and
401(k) of the Internal Revenue Code of 1986, as amended, (the Code), and is,
therefore, not subject to tax under present income tax laws. Amounts distributed
from the Plan are taxable to the participants or their beneficiaries as provided
by Section 402(a) of the Code. Once qualified, the Plan is required to operate
in conformity with the Code to maintain its tax-exempt status. The administrator
is not aware of any course of action or series of events that have occurred that
might adversly affect the Plan's qualified status.
-14-
<PAGE>
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the following: (i) Registration
Statement No. 2-92404 on Form S-8, filed July 26, 1984 and (ii) Registration
Statement No. 33-41007 on Form S-8 filed June 7, 1991, pertaining to the GATX
Corporation Salaried Employees Retirement Savings Plan, of our report dated
May 20, 1998 with respect to the financial statements of GATX Corporation
Salaried Employees Retirement Savings Plan included in this Annual Report on
Form 11-K for the year ended December 31, 1997.
ERNST & YOUNG LLP
Chicago, Illinois
June 23, 1998
