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 LOGISTICS, INC. CASH ACCUMULATION PLAN
Name of the issuer of the securities held pursuant to the Plan
and the address of its principal executive office:
GATX Logistics, Inc.
1301 Riverplace Blvd, Suite 1200, Jacksonville, Florida 32207
(904) 396-2517
<PAGE>
SIGNATURES
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 LOGISTICS, INC. CASH
ACCUMULATION PLAN
(Name of Plan)
By: /s/ Ronald E. Peterca
-------------------------
Ronald E. Peterca
Plan Administrator
Dated: June 16, 1998
<PAGE>
GATX Logistics, Inc. Cash Accumulation Plan
Financial Statements
and Supplemental Schedules
Years ended December 31, 1997 and 1996
Contents
Report of Independent Auditors.................................................1
Statement of Net Assets Available for Benefits,
With Fund Information.....................................................2
Statement of Changes in Net Assets Available
for Benefits, With Fund Information.......................................3
Notes to Financial Statements..................................................5
Supplemental Schedule of Reportable Transactions...............................9
Supplemental Schedule of Assets Held for Investment...........................10
<PAGE>
REPORT OF INDEPENDENT AUDITORS
Benefits Committee
GATX Corporation
We have audited the accompanying statements of financial condition of GATX
Logistics, Inc. Cash Accumulation Plan as of December 31, 1997 and 1996, and the
related statement of income and changes in participants' equity 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 financial position of GATX Logistics, Inc. Cash
Accumulation Plan as of December 31, 1997 and 1996, and the income and changes
in participants' equity for the years then ended in conformity with generally
accepted accounting principles.
Our audit was performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental schedules
of reportable transactions for the year ended December 31, 1997, and assets held
for investment as of December 31, 1997 and 1996, are presented for purposes of
complying with the Department of Labor's Rule and Regulations for reporting and
disclosure under the Employee Retirement Income Security Act of 1974, and are
not a required part of the basic financial statements. The fund information in
the statement of financial condition and the statement 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 supplemental schedules and fund information have been
subjected to the auditing procedures applied in our 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.
ERNST & YOUNG LLP
Jacksonville, Florida
March 21, 1998
<PAGE>
GATX Logistics, Inc. Cash Accumulation Plan
Statement of Net Assets Available for Benefits, With Fund Information
December 31
Assets: 1997 1996
----------------------------
Investments, at fair value:
Putnam Voyager Fund $ 9,709,203 $ 8,159,620
Managed Income Portfolio II 6,456,274 6,012,980
Puritan Fund 1,680,177 1,227,932
Spartan US Equity Index 2,182,831 1,203,117
Equity Income 803,715 260,634
GATX Common Stock 451,622 72,967
Dreyfus New Leaders 208,854 53,120
Templeton Foreign Fund 296,832 39,264
Employee Loans 1,388,364 1,152,163
----------- -----------
Total investments 23,177,872 18,181,797
Employer's contribution 38,468 22,635
Participants' contributions 22,171 --
----------- -----------
Total receivables 60,639 22,635
----------- -----------
Total assets 23,238,511 18,204,432
Liabilities:
Administrative expenses payable -- 24,803
Refunds due participants 127,594 56,551
----------- -----------
Total liabilities 127,594 81,354
----------- -----------
Net assets available for benefits $23,110,917 $18,123,078
=========== ===========
See accompanying notes.
<PAGE>
<TABLE>
<CAPTION>
GATX Logistics, Inc. Cash Accumulation Plan
Statement of Changes in Net Assets Available for Benefits, With Fund Information
For the Year Ended December 31, 1997
Fund Information
----------------------------------------------------------------------------------------------------------------
Description
Putnam Managed Spartan GATX Dreyfus Templeton
Voyager Income Puritan US Equity Equity Common New Foreign Employee
Fund Portfolio II Fund Index Income Stock Leaders Fund Loans Other Total
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to
net assets
attributed to:
Dividends and
interest $ 602,107 $ 405,257 $ 138,780 $ 55,403 $ 41,074 $ 775 $ 18,562 $ 35,301 $ -- $ -- $ 1,297,259
Realized gain
- Note C 192,369 -- 41,527 103,356 16,736 7,497 1,946 1,407 -- -- 364,838
Unrealized
gain (loss) 1,215,161 -- 122,202 363,897 98,390 83,022 603 (27,770) -- -- 1,855,505
---------- ---------- ---------- ---------- -------- -------- -------- -------- ---------- --------- -----------
2,009,637 405,257 302,509 522,656 156,200 91,294 21,111 8,938 -- -- 3,517,602
Employer's
contributions 514,920 485,424 152,271 175,031 57,109 38,851 25,641 28,653 -- -- 1,477,900
Participants'
contributions 905,237 726,430 247,737 321,956 107,143 65,957 49,811 57,685 -- -- 2,481,956
Transfers between
funds, net (793,706) (216,686) 9,834 253,699 276,268 196,058 76,584 197,949 -- -- --
---------- ---------- ---------- ---------- -------- -------- -------- -------- ---------- --------- -----------
626,451 995,168 409,842 750,686 440,520 300,866 152,036 284,287 -- -- 3,959,856
---------- ---------- ---------- ---------- -------- -------- -------- -------- ---------- --------- -----------
Total additions 2,636,088 1,400,425 712,351 1,273,342 596,720 392,160 173,147 293,225 -- -- 7,477,458
Deductions from
nets assets
attributed to:
Distributions 898,342 744,295 197,834 204,101 40,282 7,193 11,942 23,038 -- 71,043 2,198,070
Loan withdrawals,
net 152,517 126,826 45,336 73,459 5,058 2,395 3,909 11,403 (228,756) -- 192,147
Administrative
expenses 26,300 71,259 11,751 8,635 5,517 377 175 191 -- (24,803) 99,402
---------- ---------- ---------- ---------- -------- -------- -------- -------- ---------- --------- -----------
Total deductions 1,077,159 942,380 254,921 286,195 50,857 9,965 16,026 34,632 (228,756) 46,240 2,489,619
---------- ---------- ---------- ---------- -------- -------- -------- -------- ---------- --------- -----------
(decrease) 1,558,929 458,045 457,430 987,147 545,863 382,195 157,121 258,593 228,756 (46,240) 4,987,839
Net Assets Available
for Benefits at
Beginning of Year 8,175,245 6,016,834 1,230,311 1,203,878 260,634 72,966 53,121 39,280 1,152,163 (81,354) 18,123,078
---------- ---------- ---------- ---------- -------- -------- -------- -------- ---------- --------- -----------
Net Assets Available
for Benefits at
End of Year $9,734,174 $6,474,879 $1,687,741 $2,191,025 $806,497 $455,161 $210,242 $297,873 $1,380,919 $(127,594)$23,110,917
========== ========== ========== ========== ======== ======== ======== ======== ========== ========= ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GATX Logistics, Inc. Cash Accumulation Plan
Statement of Changes in Net Assets Available for Benefits, With Fund Information
For the Year Ended December 31, 1996
Fund Information
---------------------------------------------------------------------------------------------------------------
Description
Putnam Managed GATX Dreyfus Templeton
Voyager Income Puritan US Equity Equity Common New Foreign Employee
Fund Portfolio II Fund Index Income Stock Leaders Fund Loans Other Total
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to
net assets
attributed to:
Dividends and
interest $ 536,097 $ 382,178 $ 136,393 $ 29,910 $ 9,389 $ 221 $ 3,584 $ 681 $ - $ - $ 1,098,453
Realized gain (loss)
- Note C 144,164 - 4,154 42,970 632 1,277 244 - - - 193,441
Unrealized
gain (loss) 200,940 - 8,891 114,694 890 3,579 (1,618) 1,179 - - 328,555
---------- ---------- ---------- ---------- -------- ------- ------- ------- ---------- -------- -------------
881,201 382,178 149,438 187,574 10,911 5,077 2,210 1,860 - - 1,620,449
Employer's
contributions 572,003 553,730 142,644 120,617 4,750 5,209 2,643 1,338 - - 1,402,934
Participants'
contributions 1,180,619 826,236 251,705 231,617 157,272 10,183 7,065 2,049 - - 2,666,746
Transfers between
funds, net 68,070 (814,449) 96,068 403,028 100,672 52,936 59,710 33,965 - - -
---------- ---------- ---------- ---------- -------- ------- ------- ------- ---------- -------- -------------
1,820,692 565,517 490,417 755,262 262,694 68,328 69,418 37,352 - - 4,069,680
---------- ---------- ---------- ---------- -------- ------- ------- ------- ---------- -------- -------------
Total additions 2,701,893 947,695 639,855 942,836 273,605 73,405 71,628 39,212 - - 5,690,129
Deductions from
nets assets
attributed to:
Distributions 706,812 728,605 142,739 103,998 - 693 18,807 - - 56,551 1,758,205
Loan withdrawals,
net 303,414 170,361 27,847 21,533 12,441 (271) (315) (85) (395,772) - 139,153
Administrative
expenses 5,743 27,327 3,521 2,173 530 17 15 17 - 24,803 64,146
---------- ---------- ---------- ---------- -------- ------- ------- ------- ---------- -------- -------------
Total deductions 1,015,969 926,293 174,107 127,704 12,971 439 18,507 (68) (395,772) 81,354 1,961,504
---------- ---------- ---------- ---------- -------- ------- ------- ------- ---------- -------- -------------
Net increase
(decrease) 1,685,924 21,402 465,748 815,132 260,634 72,966 53,121 39,280 395,772 (81,354) 3,728,625
Net Assets Available
for Benefits at
Beginning of Year 6,489,321 5,995,432 764,563 388,746 - - - - 756,391 - 14,394,453
---------- ---------- ---------- ---------- -------- ------- ------- ------- ---------- -------- -------------
Net Assets Available
for Benefits at
End of Year $8,175,245 $6,016,834 $1,230,311 $1,203,878 $260,634 $72,966 $53,121 $39,280 $1,152,163 $(81,354) $18,123,078
========== ========== ========== ========== ======== ======= ======= ======= ========== ======== =============
</TABLE>
<PAGE>
GATX Logistics, Inc. Cash Accumulation 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 Logistics, Inc. (the Company) Cash
Accumulation Plan (the Plan) and are included in the realized gain (loss) on
sale of investments. Administrative and general expenses are paid by the
participants of the Plan.
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.
Certain amounts in the 1996 statement of net assets available for benefits, with
fund information have been reclassified to conform to the 1997 presentation.
NOTE B - DESCRIPTION OF THE PLAN
The Plan is a defined contribution plan subject to the provisions of the
Employee Retirement Income Security Act of 1974, as amended, (ERISA), and was
established to afford employees an opportunity to save systematically for
retirement. The Plan covers all employees of the Company who have completed one
year of employment with at least 1,000 hours of service and are at least
twenty-one years of age.
A participant may contribute to the Plan from 1% to a maximum of 16% of his or
her compensation as defined by the Plan. The Company contributes to the Plan for
each participant who is an active employee as of the end of each month, an
amount equal to the participant contribution made for such month up to 4% of the
participant's basic wages or salary.
An eligible participant may elect to have the Company deposit amounts to the
Plan on his or her behalf through the execution of salary reduction agreements
as provided under section 401(k) of the Internal Revenue Code and its
regulations. Participant contributions can range from 1% to 16% of a
participant's compensation but cannot exceed the limit ($9,500 for the fiscal
years ended December 31, 1997 and 1996) on elective deferrals according to
section 402(g)(1) of the Internal Revenue Code.
An employee or beneficiary will be fully vested in the Company's matching
contributions upon completion of one of the following: 1) completion of four
years of service, 2) a normal retirement or disability, or 3) in the event of
death. If employment terminates prior to completion of four years of service,
then the Company's match will be partially vested based on years of service as
follows: less than two years - 0%, two to four years - 50%.
NOTE B - DESCRIPTION OF THE PLAN - Continued
Upon termination of employment, disability or death, a participant or
beneficiary may elect to receive either a lump-sum equal to the value of his or
her account, or equal monthly, quarterly, or semi-annual installments over a
period not to exceed ten years.
Participants may elect to have their contributions invested in the Putnam
Voyager Fund, Managed Income Portfolio II, Puritan Fund, Spartan US Equity
Index, Equity Income, GATX Common Stock, Dreyfus New Leaders, Templeton Foreign
Fund, or in a combination of any of the funds in multiples of 5% in each fund
selected.
Active participants may obtain loans from the Plan at any time. The maximum
loan amount is subject to certain restrictions and each loan is secured by the
participant's account balance.
Each month each participant's contribution and the Company's matching
contribution is credited to each participant's account. Non-vested amounts which
are forfeited are used periodically to reduce the amount of the Company's
matching contribution. The balance of the forfeiture account at December 31,
1997 was $32,705. Investment gains or losses (realized and unrealized) are
allocated, based on previous business day's quoted market prices, to each
participant's account in the proportion that each participant's account bears to
the total of all account balances.
Employees participating in the Plan had invested in the available funds as
follows (some having invested in more than one fund):
December 31, 1997
---------------------
Total employees participating 1,604
Putnam Voyager Fund 996
Managed Income Portfolio II 966
Puritan Fund 465
Spartan US Equity Index 470
Equity Income 191
GATX Common Stock 175
Dreyfus New Leaders 137
Templeton Foreign Fund 117
NOTE B - DESCRIPTION OF THE PLAN - Continued
The Company 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. 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.
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>
Putnam Voyager Fund 509,669 $8,052,461 506,180 $7,665,439
Managed Income Portfolio II 6,456,274 6,456,274 6,012,980 6,012,980
Puritan Fund 86,696 1,536,718 71,226 1,208,295
Spartan US Equity Index 62,402 1,688,516 44,643 1,062,440
Equity Income 15,335 697,460 6,085 259,693
GATX Common Stock 29,006 361,589 7,203 69,972
Dreyfus New Leaders 4,709 207,771 1,304 54,422
Templeton Foreign Fund 29,832 320,604 3,790 38,086
Employee Loans 1,380,919 1,380,919 1,152,163 1,152,163
----------- -----------
$20,702,312 $17,523,490
=========== ===========
</TABLE>
<PAGE>
GATX Logistics, Inc. Cash Accumulation 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
-------------------------------------------------------------------------------
Aggregate Aggregate Realized
Proceeds Cost Gain/Loss
-------------------------------------------------------------------------------
<S> <C> <C> <C>
Putnam Voyager Fund $2,576,662 $2,384,293 $192,369
Managed Inc. Portfolio II
1,938,148 1,938,148 -
Puritan
509,159 467,632 41,527
Spartan US Equity Index
643,214 539,858 103,356
Equity Income
118,255 101,519 16,736
GATX Common Stock
46,173 38,676 7,497
Dreyfus New Leaders
39,050 37,104 1,946
Templeton Foreign Fund
126,981 125,574 1,407
--------------------------------------------------------------------------------
Total $5,997,642 $5,632,804 $364,838
================================================================================
</TABLE>
NOTE D - FEDERAL INCOME TAX STATUS
The Internal Revenue Service has issued a favorable determination letter of the
Plan's status 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 adversely affect the
Plan's qualified status.
<PAGE>
<TABLE>
<CAPTION>
GATX Logistics, Inc. Cash Accumulation Plan
Supplemental Schedule of Reportable Transactions
For the year ended December 31, 1997
Current Value of
Asset on
Identity of Party Involved Description of Asset Purchase Price Selling Price Cost of Asset Transaction Date Net Gain (Loss)
- ------------------------------------------------------------------------------------------------------------------------------------
Category (iii)-- series of securities transactions in excess of 5 percent of plan
assets
<S> <C> <C> <C> <C> <C>
Fidelity Management Trust Putnam Voyager Fund $2,718,715 $ - $2,718,715 $2,718,715 $ -
Company - 2,576,662 2,331,693 2,576,662 244,969
Fidelity Management Trust Puritan 797,675 - 797,675 797,675 -
Company - 509,159 469,253 509,159 39,906
Fidelity Management Trust Managed Inc. Portfolio II 2,381,444 - 2,381,444 2,381,444 -
Company - 1,938,148 1,938,148 1,938,148 -
Fidelity Management Trust Spartan U.S. Equity Index 1,155,675 - 1,155,675 1,155,675 -
Company - 643,214 529,602 643,214 113,612
<FN>
There were no category (i), (ii) or (iv) reportable transactions during fiscal
year 1997.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GATX Logistics, Inc. Cash Accumulation Plan
Supplemental Schedule of Assets Held for Investment
December 31, 1997
1997
- -------------------------------------------------------------------------------------------------------------
Identity of Issue Description of Investment Cost Current Value
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Putnam Voyager Fund 509,669 units $ 8,052,461 $ 9,734,174
MIP II 6,456,276 units 6,456,276 6,474,879
Puritan Fund 86,696 units 1,536,718 1,687,741
Spartan US Equity Index 62,402 units 1,688,514 2,191,025
Equity Income 15,335 units 697,460 806,497
GATX Common Stock 29,006 units 361,589 455,161
Dreyfus New Leaders 4,709 units 207,771 210,242
Templeton Foreign Fund 29,832 units 320,604 297,873
Employee Loans 8% per annum - 1,380,919
----------- -----------
$19,321,393 $23,238,511
=========== ===========
</TABLE>
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement (Form
S-8 No. 33-06315) pertaining to the GATX Logistics, Inc. 401(k) Cash
Accumulation Plan of GATX Corporation of our report dated March 21, 1998, with
respect to the financial statements of the GATX Logistics, Inc. 401(k) Cash
Accumulation Plan for the year ended December 31, 1997 included in this Annual
Report (Form 11-K) for the year ended December 31, 1997.
ERNST & YOUNG LLP
Jacksonville, Florida
June 16, 1998
