<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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, 1998
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> 2
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 29, 1999
<PAGE> 3
GATX Corporation Salaried Employees Retirement Savings Plan
Index to Financial Statements and Supplemental Schedules
For Annual Report on Form 11-K
Years ended December 31, 1998 and 1997
CONTENTS
<TABLE>
<S> <C>
Report of Independent Auditors......................................................4
Consent of Independent Auditors.....................................................5
Financial Statements
Statements of Assets Available for Benefits, With Fund Information..................6
Statements of Changes in Assets Available for Benefits, With Fund Information.......7
Notes to Financial Statements......................................................10
Supplemental Schedules
Line 27a - Schedule of Assets Held for Investment Purposes.........................17
Line 27d - Schedule of Reportable Transactions.....................................18
</TABLE>
<PAGE> 4
Report of Independent Auditors
Employee Benefits Committee
GATX Corporation
We have audited the accompanying statements of assets available for benefits of
the GATX Corporation Salaried Employees Retirement Savings Plan as of December
31, 1998 and 1997, and the related statement of changes in assets available for
benefits 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 assets available for benefits of the Plan at December
31, 1998 and 1997, and the changes in its assets available for benefits for the
years then ended, in conformity with generally accepted accounting principles.
The Fund Information in the statement 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
Fund Information has been subjected to the auditing procedures applied in our
audits of the financial statements and, in our opinion, is fairly stated in all
material respects in relation to the financial statements taken as a whole.
Our audits were performed for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment purposes as of December 31, 1998, and reportable
transactions for the year then ended, are presented for purposes of additional
analysis and are not a required part of the 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. These supplemental schedules are the responsibility of the
Plan's management. The supplemental schedules have been subjected to the
auditing procedures applied in our audits of the financial statements and, in
our opinion, are fairly stated in all material respects in relation to the
financial statements taken as a whole.
Ernst & Young LLP
June 8, 1999
Chicago, Illinois
4
<PAGE> 5
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 June
8, 1999, 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, 1998.
ERNST & YOUNG LLP
Chicago, Illinois
June 28, 1999
5
<PAGE> 6
EIN 36-1124040
Plan #002
GATX Corporation Salaried Employees Retirement Savings Plan
Statement of Assets Available for Benefits, With Fund Information
December 31, 1998
<TABLE>
<CAPTION>
FUND INFORMATION
-------------------------------------------------------------------------------
GATX
CORPORATION PHILLIPS
COMMON PETROLEUM
MANAGED STOCK SPARTAN FIDELITY PUTNAM COMPANY
INCOME FUND U.S. EQUITY PURITAN VOYAGER SECURITIES
FUND (NOTE 4) INDEX FUND FUND FUND FUND
------------ ----------- ----------- ---------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at current value (Note 3):
Bankers Trust Pyramid GIC Fund $ 8,986,805 $ -- $ -- $ -- $ -- $ --
GATX Corporation Common Stock Fund -- 63,754,753 -- -- -- --
Spartan U.S. Equity Index Fund -- -- 30,854,092 -- -- --
Fidelity Puritan Fund -- -- -- 9,492,958 -- --
Fidelity Managed Income Portfolio II 15,089,178 -- -- -- -- --
Putnam Voyager Fund -- -- -- -- 17,364,579 --
Phillips Petroleum Company Securities Fund -- -- -- -- -- 45,539
Dreyfus New Leaders Fund -- -- -- -- -- --
Fidelity Equity Income Fund -- -- -- -- -- --
Templeton Foreign Fund A -- -- -- -- -- --
FMTC Institutional Money Market Fund 765,821 -- -- -- -- --
Participant loans -- -- -- -- -- --
------------ ----------- ----------- ---------- ------------ -------------
Assets available for benefits $ 24,841,804 $63,754,753 $30,854,092 $9,492,958 $ 17,364,579 $ 45,539
============ =========== =========== ========== ============ =============
<CAPTION>
FUND INFORMATION
--------------------------------------------------------------
DREYFUS FIDELITY
NEW EQUITY TEMPLETON
LEADERS INCOME FOREIGN PARTICIPANT
FUND FUND FUND A LOANS TOTAL
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at current value (Note 3):
Bankers Trust Pyramid GIC Fund $ -- $ -- $ -- $ -- $ 8,986,805
GATX Corporation Common Stock Fund -- -- -- -- 63,754,753
Spartan U.S. Equity Index Fund -- -- -- -- 30,854,092
Fidelity Puritan Fund -- -- -- -- 9,492,958
Fidelity Managed Income Portfolio II -- -- -- -- 15,089,178
Putnam Voyager Fund -- -- -- -- 17,364,579
Phillips Petroleum Company Securities Fund -- -- -- -- 45,539
Dreyfus New Leaders Fund 1,225,786 -- -- -- 1,225,786
Fidelity Equity Income Fund -- 4,312,324 -- -- 4,312,324
Templeton Foreign Fund A -- -- 1,606,346 -- 1,606,346
FMTC Institutional Money Market Fund -- -- -- -- 765,821
Participant loans -- -- -- 4,680,574 4,680,574
------------ ------------ ------------ ------------ ------------
Assets available for benefits $ 1,225,786 $ 4,312,324 $ 1,606,346 $ 4,680,574 $158,178,755
============ ============ ============ ============ ============
</TABLE>
See notes to financial statements.
6
<PAGE> 7
EIN 36-1124040
Plan #002
GATX Corporation Salaried Employees Retirement Savings Plan
Statement of Assets Available for Benefits, With Fund Information
December 31, 1997
<TABLE>
<CAPTION>
FUND INFORMATION
-----------------------------------------------------------------------------
GATX PHILLIPS
CORPORATION PETROLEUM
MANAGED COMMON STOCK SPARTAN FIDELITY PUTNAM COMPANY
INCOME FUND U.S. EQUITY PURITAN VOYAGER SECURITIES
FUND (NOTE 4) INDEX FUND FUND FUND FUND
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at current value (Note 3):
Bankers Trust Pyramid GIC Fund $12,642,493 $ -- $ -- $ -- $ -- $ --
GATX Corporation Common Stock Fund -- 56,249,309 -- -- -- --
Spartan 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 Securities Fund -- -- -- -- -- 51,950
Dreyfus New Leaders Fund -- -- -- -- -- --
Fidelity Equity Income Fund -- -- -- -- -- --
Templeton Foreign Fund A -- -- -- -- -- --
FMTC Institutional Money Market Fund 992,335 -- -- -- -- --
Participant loans -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Assets available for benefits $25,175,329 $56,249,309 $23,563,086 $ 8,444,699 $14,074,452 $ 51,950
=========== =========== =========== =========== =========== ===========
<CAPTION>
FUND INFORMATION
--------------------------------------------------------------
DREYFUS FIDELITY
NEW EQUITY TEMPLETON
LEADERS INCOME FOREIGN PARTICIPANT
FUND FUND FUND A LOANS TOTAL
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at current value (Note 3):
Bankers Trust Pyramid GIC Fund $ -- $ -- $ -- $ -- $ 12,642,493
GATX Corporation Common Stock Fund -- -- -- -- 56,249,309
Spartan 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 Securities Fund -- -- -- -- 51,950
Dreyfus New Leaders Fund 987,859 -- -- -- 987,859
Fidelity Equity Income Fund -- 3,238,274 -- -- 3,238,274
Templeton Foreign Fund A -- -- 1,710,579 -- 1,710,579
FMTC Institutional Money Market Fund -- -- -- -- 992,335
Participant loans -- -- -- 4,189,433 4,189,433
------------ ------------ ------------ ------------ ------------
Assets available for benefits $ 987,859 $ 3,238,274 $ 1,710,579 $ 4,189,433 $137,684,970
============ ============ ============ ============ ============
</TABLE>
See notes to financial statements.
7
<PAGE> 8
EIN 36-1124040
Plan #002
GATX Corporation Salaried Employees Retirement Savings Plan
Statement of Changes in Assets Available for Benefits, With Fund Information
December 31, 1998
<TABLE>
<CAPTION>
FUND INFORMATION
--------------------------------------------------------------------
GATX
CORPORATION
COMMON
MANAGED STOCK SPARTAN FIDELITY PUTNAM
INCOME FUND U.S. EQUITY PURITAN VOYAGER
FUND (NOTE 4) INDEX FUND FUND FUND
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
ADDITIONS
Contributions by GATX Corporation and subsidiaries $ -- $ 2,294,334 $ -- $ -- $ --
Salary deferrals by participants 1,368,166 1,185,574 1,516,691 651,745 1,380,872
Rollover contributions by participants 19,182 244,421 73,941 98,371 221,491
Interest income 1,438,758 727 -- -- --
Dividend income -- 1,595,197 597,849 954,941 1,161,408
Transfer from (to) GATX Corporation Hourly Employees
Retirement Savings Plan 19,176 (14,008) 1,271 1,839 --
------------ ------------ ------------ ------------ ------------
2,845,282 5,306,245 2,189,752 1,706,896 2,763,771
DEDUCTIONS
Withdrawals by participants (1,440,218) (2,796,388) (1,519,050) (446,572) (777,218)
------------ ------------ ------------ ------------ ------------
(1,440,218) (2,796,388) (1,519,050) (446,572) (777,218)
Net appreciation (depreciation) in fair value of
investments -- 2,798,116 6,121,788 407,858 2,124,662
Interfund transfers (1,738,589) 2,197,471 498,516 (619,923) (821,088)
------------ ------------ ------------ ------------ ------------
Net increase (decrease) (333,525) 7,505,444 7,291,006 1,048,259 3,290,127
Assets available for benefits:
Beginning of the year 25,175,329 56,249,309 23,563,086 8,444,699 14,074,452
------------ ------------ ------------ ------------ ------------
End of the year $ 24,841,804 $ 63,754,753 $ 30,854,092 $ 9,492,958 $ 17,364,579
============ ============ ============ ============ ============
<CAPTION>
FUND INFORMATION
---------------------------------------------------------------------
PHILLIPS
PETROLEUM DREYFUS FIDELITY
COMPANY NEW EQUITY TEMPLETON
SECURITIES LEADERS INCOME FOREIGN PARTICIPANT TOTAL
FUND FUND FUND FUND A LOANS
----------- ----------- ----------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS
Contributions by GATX Corporation and
subsidiaries $ -- $ -- $ -- $ -- $ -- $ 2,294,334
Salary deferrals by participants -- 224,015 435,669 232,314 -- 6,995,046
Rollover contributions by participants -- 35,185 104,246 20,618 -- 817,455
Interest income -- -- -- -- 399,725 1,839,210
Dividend income -- 29,940 229,129 169,863 -- 4,738,327
Transfer from (to) GATX Corporation Hourly
Employees Retirement Savings Plan -- -- -- -- -- 8,278
----------- ----------- ----------- ------------- ------------- -------------
-- 289,140 769,044 422,795 399,725 16,692,650
DEDUCTIONS
Withdrawals by participants -- (83,665) (256,976) (84,099) (74,089) (7,478,275)
----------- ----------- ----------- ------------- ------------- -------------
-- (83,665) (256,976) (84,099) (74,089) (7,478,275)
Net appreciation (depreciation) in fair
value of investments (6,411 (90,498) 201,281 (277,386) -- 11,279,410
Interfund transfers -- 122,950 360,701 (165,543) 165,505 --
----------- ----------- ----------- ------------- ------------- -------------
Net increase (decrease) (6,411 237,927 1,074,050 (104,233) 491,141 20,493,785
Assets available for benefits:
Beginning of the year 51,950 987,859 3,238,274 1,710,579 4,189,433 137,684,970
----------- ----------- ----------- ------------- ------------- -------------
End of the year $ 45,539 $ 1,225,786 $ 4,312,324 $ 1,606,346 $ 4,680,574 $ 158,178,755
=========== =========== =========== ============= ============= =============
</TABLE>
See notes to financial statements.
8
<PAGE> 9
EIN 36-1124040
Plan #002
GATX Corporation Salaried Employees Retirement Savings Plan
Statement of Changes in Assets Available for Benefits, With Fund Information
December 31, 1997
<TABLE>
<CAPTION>
FUND INFORMATION
------------------------------------------------------------------------------------
GATX
CORPORATION PHILLIPS
COMMON PETROLEUM
MANAGED STOCK SPARTAN FIDELITY PUTNAM COMPANY
INCOME FUND U.S. EQUITY PURITAN VOYAGER SECURITIES
FUND (NOTE 4) INDEX FUND FUND FUND FUND
------------ ------------ ------------ ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS
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 --
Rollover contributions by participants 268,887 93,231 174,570 104,981 159,668 --
Interest income 1,525,209 716 -- -- -- --
Dividend income -- 1,383,755 520,998 647,478 833,578 --
3,385,422 4,449,153 2,002,926 1,428,350 2,353,165 --
DEDUCTIONS
Withdrawals by participants (2,825,629) (3,543,334) (1,475,620) (651,934) (1,046,267) --
------------ ------------ ------------ ----------- ------------ -----------
(2,825,629) (3,543,334) (1,475,620) (651,934) (1,046,267) --
Net appreciation (depreciation) in fair
value of investments -- 18,197,643 5,220,988 831,717 2,076,416 4,674
Interfund transfers (3,118,168) 7,924 1,097,823 362,382 (1,365,083) --
------------ ------------ ------------ ----------- ------------ -----------
Net increase (decrease) (2,558,355) 19,111,386 6,846,117 1,970,515 2,018,231 4,674
Assets available for benefits:
Beginning of the year 27,733,684 37,137,923 16,716,969 6,474,184 12,056,221 47,276
------------ ------------ ------------ ----------- ------------ -----------
End of the year $ 25,175,329 $ 56,249,309 $ 23,563,086 $ 8,444,699 $ 14,074,452 $ 51,950
============ ============ ============ =========== ============ ===========
<CAPTION>
FUND INFORMATION
---------------------------------------------------------------------
DREYFUS FIDELITY
COMPANY NEW EQUITY TEMPLETON
SECURITIES LEADERS INCOME FOREIGN PARTICIPANT
FUND FUND FUND FUND A LOANS TOTAL
----------- ----------- ----------- ------------- ------------- -------------
ADDITIONS
Contributions by GATX Corporation and
subsidiaries $ -- $ -- $ -- $ -- $ -- $ 2,132,799
Salary deferrals by participants -- 143,090 303,396 214,107 -- 6,433,759
Rollover contributions by participants -- 32,211 65,771 36,096 -- 935,415
Interest income -- -- -- -- 359,804 1,885,729
Dividend income -- 84,885 147,960 184,973 -- 3,803,627
----------- ----------- ----------- ------------- ------------- -------------
-- 260,186 517,127 435,176 359,804 15,191,329
DEDUCTIONS
Withdrawals by participants -- (24,258) (179,512) (48,779) (195,907) (9,991,240)
----------- ----------- ----------- ------------- ------------- -------------
-- (24,258) (179,512) (48,779) (195,907) (9,991,240)
Net appreciation (depreciation) in fair
value of investments 4,674 58,363 387,372 (143,332) -- 26,633,841
Interfund transfers -- 330,593 1,968,178 908,984 (192,633) --
----------- ----------- ----------- ------------- ------------- -------------
Net increase (decrease) 4,674 624,884 2,693,165 1,152,049 (28,736) 31,833,930
Assets available for benefits:
Beginning of the year 47,276 362,975 545,109 558,530 4,218,169 105,851,040
----------- ----------- ----------- ------------- ------------- -------------
End of the year $ 51,950 $ 987,859 $ 3,238,274 $ 1,710,579 $ 4,189,433 $ 137,684,970
====================================================================================
</TABLE>
See notes to financial statements.
9
<PAGE> 10
EIN 36-1124040
Plan #002
GATX Corporation Salaried Employees Retirement Savings Plan
Notes to Financial Statements
Years ended December 31, 1998 and 1997
1. DESCRIPTION OF THE PLAN
The following description of the GATX Corporation (GATX or the Company) Salaried
Employees Retirement Savings Plan (the Plan) provides only general information.
Participants should refer to the Plan document for a more complete description
of the Plan's provisions.
GENERAL
The Plan is a defined-contribution plan which was established July 1, 1965, for
salaried employees of GATX and each of its domestic subsidiaries which adopts or
has adopted the Plan upon authorization by GATX.
CONTRIBUTIONS
Each year, participants may contribute up to 15% of pretax annual compensation,
as defined in the Plan. Participants may also contribute amounts representing
distributions from other qualified defined-benefit or defined-contribution
plans.
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 are deposited semi-monthly.
PARTICIPANT ACCOUNTS
Each participant's account is credited with the participant's contributions and
allocation of Plan earnings. Allocations are based on account balances, as
defined. The benefit to which a participant is entitled is the benefit that can
be provided from the participant's account.
10
<PAGE> 11
GATX Corporation Salaried Employees Retirement Savings Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
VESTING
Participants are immediately 100% vested in their contributions plus actual
earnings thereon.
INVESTMENT OPTIONS
Participants may elect the following fund options:
Managed Income Fund - A stable fund that preserves principal while
earning interest income.
GATX Corporation Common Stock Fund - A fund that consists of GATX
Corporation common stock.
Spartan U.S. Equity Index Fund - A growth and income mutual fund that
invests primarily in S&P 500 companies.
Puritan Fund - A balanced mutual fund that provides as much income as
possible while preserving capital by investing in high yielding U.S.
and foreign securities.
Putnam Voyager Fund - A fund that seeks capital appreciation by
investing primarily in common stocks.
Phillips Petroleum Company Securities Fund - A fund that consists
solely of Phillips Petroleum stock. Participants may not direct salary
deferrals into this fund.
Dreyfus New Leaders Fund - A fund that seeks capital appreciation by
investing primarily in common stocks of smaller emerging companies.
Fidelity Equity Income Fund - A fund that seeks reasonable income by
investing in income-producing equity securities.
Templeton Foreign Fund A - A growth mutual fund that invests primarily
in international common stock.
11
<PAGE> 12
GATX Corporation Salaried Employees Retirement Savings Plan
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
Participants may change their investment options four times per calendar year.
PAYMENT OF BENEFITS
In the event of retirement (as defined), death, permanent disability, or
termination of employment, the vested balance in the participant's account will
be distributed to the participant or the participant's beneficiary in a single
lump-sum cash payment.
WITHDRAWALS
Withdrawals are available to participants for immediate and heavy financial need
(as defined). The withdrawal amount is limited to the participant's contribution
portion and cannot exceed the amount required to relieve the financial need.
ADMINISTRATIVE EXPENSES
It is the intent of the Company to pay the administrative expenses of the Plan,
but if the Company fails to make the payments, or so directs, there may be a
charge against the Plan for these expenses.
PARTICIPANT LOANS
A participant may borrow an amount up to the lesser of $50,000 or 50% of their
account balance. Such loans, which are payable over a term specified by the
Plan, bear interest at a rate of 1% above the prime rate and are secured by a
participant's account balance in the Plan.
PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the right
under the Plan to terminate the Plan subject to the provisions of ERISA.
12
<PAGE> 13
GATX Corporation Salaried Employees Retirement Savings Plan
Notes to Financial Statements (continued)
2. SIGNIFICANT ACCOUNTING POLICIES
INVESTMENT VALUATION AND INCOME RECOGNITION
The Banker's Trust group annuity contract is stated at contract value, which is
determined by the insurance company in accordance with the terms of the
contract. Contract value represents contributions made under the contract, plus
interest at the contract rate, less withdrawals. The fair value of the
participation units owned by the Plan in the mutual funds is based on quoted
redemption values on the last business day of the Plan year.
Participant loans are stated at cost which approximates fair value.
Purchases and sales of securities are recorded on a trade-date basis. Interest
income is recorded on the accrual basis. Dividends are recorded on the
ex-dividend date.
CONTRIBUTIONS
Participant contributions are made through payroll deductions and recorded in
the period the deductions are made.
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 amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
RECLASSIFICATION
Certain items in the 1997 financial statements have been reclassified to conform
to the 1998 presentation.
13
<PAGE> 14
GATX Corporation Salaried Employees Retirement Savings Plan
Notes to Financial Statements (continued)
3. INVESTMENTS
Except for investments held in a Master Trust (Note 4), the Plan's investments
held during the year appreciated in fair value as follows:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
1998 1997
----------- -----------
<S> <C> <C>
Netrealized and unrealized appreciation
(depreciation) in fair value of investments:
Spartan U.S. Equity Index Fund $ 6,121,788 $ 5,220,988
Fidelity Puritan Fund 407,858 831,717
Putnam Voyager Fund 2,124,662 2,076,416
Phillips Petroleum Company Securities Fund (6,411) 4,674
Dreyfus New Leaders Fund (90,498) 58,363
Fidelity Equity Income Fund 201,281 387,372
Templeton Foreign Fund A (277,386) (143,332)
----------- -----------
$ 8,481,294 $ 8,436,198
=========== ===========
</TABLE>
Except for investments held in a Master Trust (Note 4), the Plan held the
following investments with 5% or more of Plan assets at year-end:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
1998 1997
----------- -----------
<S> <C> <C>
Bankers Trust Pyramid GIC Fund $ 8,986,805 $12,642,493
Fidelity Managed Income Portfolio II 15,089,178 11,540,501
Spartan U.S. Equity Index Fund 30,854,092 23,563,086
Fidelity Puritan Fund 9,492,958 8,444,699
Putnam Voyager Fund 17,364,579 14,074,452
</TABLE>
14
<PAGE> 15
GATX Corporation Salaried Employees Retirement Savings Plan
Notes to Financial Statements (continued)
4. MASTER TRUST
The GATX Corporation Stock Fund is in a Master Trust which includes the stock
funds of three GATX benefit plans: the GATX Corporation Salaried Employees
Retirement Savings Plan; the GATX Corporation Hourly Employees Retirement
Savings Plan; and the GATX Logistics Inc. 401(k) Cash Accumulation Plan.
<TABLE>
<CAPTION>
DECEMBER 31
1998
-----------
<S> <C>
ASSETS
GATX Corporation common stock $65,423,003
RECEIVABLES
Other receivables 227,974
-----------
$65,650,977
===========
<CAPTION>
YEAR ENDED
DECEMBER 31
1998
-----------
<S> <C>
ADDITIONS
Contributions $ 4,283,297
Interfund transfers 3,272,023
Loan repayments 380,641
Interest and dividend income 1,670,167
-----------
9,606,128
DEDUCTIONS
Benefit payments (2,868,899)
Participant loans (571,065)
-----------
(3,439,964)
Net realized and unrealized appreciation in fair value of investments 2,788,325
Beginning of year 56,696,488
-----------
End of year $65,650,977
===========
</TABLE>
The plan has a 97.1% interest in the Master Trust.
15
<PAGE> 16
5. TAX STATUS
The Internal Revenue Service ruled August 4, 1995, that the Plan qualified under
section 401(a) of the Internal Revenue Code (IRC) and, therefore, the related
trust is not subject to tax under present income tax law. Once qualified, the
Plan is required to operate in conformity with the IRC to maintain its
qualification. The plan 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.
6. YEAR 2000 ISSUE (UNAUDITED)
The Company has developed a plan to modify its internal information technology
to be ready for the year 2000, and has begun converting critical data processing
systems. The project also includes determining whether third-party service
providers have reasonable plans in place to become Year 2000 compliant. The
Company expects the project to be complete by late 1999. The Company does not
expect this project to have a significant effect on Plan operations.
16
<PAGE> 17
SUPPLEMENTAL SCHEDULES
<PAGE> 18
EIN 36-1124040
Plan #002
GATX Corporation Salaried Employees Retirement Savings Plan
Line 27a - Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
CURRENT
IDENTITY OF ISSUER/DESCRIPTION OF ISSUE COST VALUE
----------- -----------
<S> <C> <C>
Fidelity Management Trust Company*:
Bankers' Trust Pyramid GIC Fund $ 8,986,805 $ 8,986,805
Fidelity Managed Income Portfolio II 15,089,178 15,089,178
Spartan U.S. Equity Index Fund 18,380,552 30,854,092
Fidelity Puritan Fund 8,459,313 9,492,958
Putnam Voyager Fund 13,021,402 17,364,579
Phillips Petroleum Company Securities Fund 20,633 45,539
Dreyfus New Leaders Fund 1,274,045 1,225,786
Fidelity Equity Income Fund 3,859,371 4,312,324
Templeton Foreign Fund A 1,965,255 1,606,346
FMTC Institutional Money Market Fund 765,821 765,821
Participant Loans - 9.5% interest rate -- 4,680,574
----------- -----------
$71,822,375 $94,424,002
=========== ===========
</TABLE>
* Party in interest to the Plan.
17
<PAGE> 19
EIN 36-112040
Plan #002
GATX Corporation Salaried Employees Retirement Savings Plan
Line 27d - Schedule of Reportable Transactions
Year ended December 31, 1998
<TABLE>
<CAPTION>
TOTAL
PURCHASE SELLING COST
IDENTITY OF PARTY INVOLVED/DESCRIPTION OF ASSETS PRICE PRICE OF ASSET
-------- ------- --------
<S> <C> <C> <C>
Category (iii) - Series of transactions in excess of 5% of Plan assets
Fidelity Management Trust Company*:
Fidelity Managed Income Portfolio II $ 7,175,200 $ -- $ 7,175,200
-- 4,344,114 4,344,114
FMTC Institutional Money Market Fund 15,496,026 -- 15,496,026
-- 15,767,121 15,767,121
Putnam Voyager Fund 4,600,743 -- 4,600,743
-- 3,434,804 2,782,343
Spartan U.S. Equity Index Fund 5,694,238 -- 5,694,238
-- 4,525,682 3,260,493
<CAPTION>
CURRENT
VALUE OF
ASSET ON
TRANSACTION NET
IDENTITY OF PARTY INVOLVED/DESCRIPTION OF ASSETS DATE GAIN
------------ ----
<S> <C> <C>
Category (iii) - Series of transactions in excess of 5% of Plan assets
Fidelity Management Trust Company*:
Fidelity Managed Income Portfolio II $ $7,175,200
4,344,114 --
FMTC Institutional Money Market Fund 15,496,026 --
15,767,121 --
Putnam Voyager Fund 4,600,743 --
3,434,804 652,461
Spartan U.S. Equity Index Fund 5,694,238 --
4,525,682 1,265,189
</TABLE>
There were no category (i), (ii), or (iv) reportable transactions during the
year ended December 31, 1998.
18
