<PAGE> 1
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, 1998
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> 2
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 25, 1999
<PAGE> 3
GATX Logistics, Inc. Cash Accumulation 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
Statements of Net Assets Available for Benefits..............................6
Statements of Changes in Net Assets Available for Benefits with Fund
Information................................................................7
Notes to Financial Statements................................................9
Line 27a--Schedule of Assets Held for Investment Purposes....................14
Line 27d--Schedule of Reportable Transactions................................15
</TABLE>
<PAGE> 4
REPORT OF INDEPENDENT AUDITORS
Benefits Committee
GATX Logistics, Inc. Cash Accumulation Plan
We have audited the accompanying statements of net assets available for benefits
of GATX Logistics, Inc. Cash Accumulation Plan as of December 31, 1998 and 1997,
and the related statements of changes in net 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 net assets available for benefits of the Plan at
December 31, 1998 and 1997, and the changes in net assets available for benefits
for the years then ended, in conformity with generally accepted accounting
principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The 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 Fund Information in the statements of changes in net
assets available for benefits is presented for purposes of additional analysis
rather than to present the changes in net assets available for benefits of each
fund. The supplemental schedules and Fund Information 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
Jacksonville, Florida
May 13, 1999
4
<PAGE> 5
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 May 13, 1999, with
respect to the financial statements of the GATX Logistics, Inc. 401(k) Cash
Accumulation Plan for the year ended December 31, 1998 included in this Annual
Report (Form 11-K) for the year ended December 31, 1998.
ERNST & YOUNG LLP
Jacksonville, Florida
June 29, 1999
5
<PAGE> 6
GATX LOGISTICS, INC. CASH ACCUMULATION PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
DECEMBER 31
ASSETS: 1998 1997
----------- -----------
<S> <C> <C>
Investments, at fair value:
Putnam Voyager Fund $11,522,758 $ 9,709,203
Managed Income Portfolio II 6,918,637 6,456,274
Puritan Fund 2,301,185 1,680,177
Spartan US Equity Index 3,247,914 2,182,831
Equity Income 1,002,406 803,715
GATX Common Stock 1,221,194 451,622
Dreyfus New Leaders 255,612 208,854
Templeton Foreign Fund 277,118 296,832
Fidelity Freedom Income Fund 421 --
Fidelity Freedom 2000 863 --
Fidelity Freedom 2010 16,059 --
Fidelity Freedom 2020 33,114 --
Fidelity Freedom 2030 11,333 --
Participant Loans 1,548,538 1,388,364
----------- -----------
Total investments 28,357,152 23,177,872
Receivables:
Employer's contribution 180 38,468
Participants' contributions 298 22,171
----------- -----------
Total receivables 478 60,639
----------- -----------
Total assets 28,357,630 23,238,511
LIABILITIES:
Excess employer's contribution 4,247 --
Refunds due participants 58,622 127,594
----------- -----------
Total liabilities 62,869 127,594
----------- -----------
Net assets available for benefits $28,294,761 $23,110,917
=========== ===========
</TABLE>
See accompanying notes.
6
<PAGE> 7
GATX Logistics, Inc. Cash Accumulation Plan
Statements of Changes in Net Assets Available for Benefits with Fund Information
For the Year Ended December 31, 1998
<TABLE>
<CAPTION>
FUND INFORMATION
----------------------------------------------------------------------------------
PUTNAM MANAGED SPARTAN
VOYAGER INCOME PURITAN US EQUITY EQUITY
FUND PORTFOLIO II FUND INDEX INCOME
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Dividends and interest $ 838,945 $ 414,401 $ 232,952 $ 70,755 $ 56,589
------------ ------------ ------------ ------------ ------------
Net realized and unrealized
appreciation/ depreciation on
investments 1,484,563 -- 84,042 628,005 38,690
------------ ------------ ------------ ------------ ------------
2,323,508 414,401 316,994 698,760 95,279
Employer's contributions 518,295 495,714 174,130 213,427 86,909
Participants' contributions 871,005 738,041 278,271 373,839 163,695
Transfers between funds, net (227,679) (175,225) 79,204 86,706 (70,402)
------------ ------------ ------------ ------------ ------------
1,161,621 1,058,530 531,605 673,972 180,202
------------ ------------ ------------ ------------ ------------
Total additions 3,485,129 1,472,931 848,599 1,372,732 275,481
Deductions from nets assets attributed to:
Distributions 1,477,934 840,990 174,469 231,622 65,374
Loan withdrawals, net 187,463 132,478 48,773 74,206 5,153
Administrative expenses 31,067 59,900 11,888 9,978 9,028
------------ ------------ ------------ ------------ ------------
Total deductions 1,696,464 1,033,368 235,130 315,806 79,555
------------ ------------ ------------ ------------ ------------
Net increase (decrease) 1,788,665 439,563 613,469 1,056,926 195,926
Net Assets Available for Benefits,
At Beginning of Year 9,734,174 6,474,879 1,687,741 2,191,025 806,497
------------ ------------ ------------ ------------ ------------
Net Assets Available for Benefits,
At End of Year $ 11,522,839 $ 6,914,442 $ 2,301,210 $ 3,247,951 $ 1,002,423
============ ============ ============ ============ ============
<CAPTION>
FIDELITY
GATX DREYFUS TEMPLETON FREEDOM FIDELITY
COMMON NEW FOREIGN INCOME FREEDOM
STOCK LEADERS FUND FUND 2000
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Dividends and interest $ 26,704 $ 8,794 $ 30,275 $ 10 $ 13
------------ ------------ ------------ ------------ ------------
Net realized and unrealized
appreciation/ depreciation on
investments 32,124 (24,421) (47,920) -- (2)
------------ ------------ ------------ ------------ ------------
58,828 (15,627) (17,645) 10 11
Employer's contributions 138,797 44,881 38,209 194 419
Participants' contributions 257,513 90,239 72,446 183 419
Transfers between funds, net 401,782 (46,310) (94,787) -- --
------------ ------------ ------------ ------------ ------------
798,092 88,810 15,868 377 838
------------ ------------ ------------ ------------ ------------
Total additions 856,920 73,183 (1,777) 387 849
Deductions from nets assets attributed to:
Distributions 69,174 27,188 20,254 -- --
Loan withdrawals, net 20,340 252 (1,490) (35) (14)
Administrative expenses 1,336 365 208 -- --
------------ ------------ ------------ ------------ ------------
Total deductions 90,850 27,805 18,972 (35) (14)
------------ ------------ ------------ ------------ ------------
Net increase (decrease) 766,070 45,378 (20,749) 422 863
Net Assets Available for Benefits,
At Beginning of Year 455,161 210,242 297,873 -- --
------------ ------------ ------------ ------------ ------------
Net Assets Available for Benefits,
At End of Year $ 1,221,231 $ 255,620 $ 277,124 $ 422 $ 863
============ ============ ============ ============ ============
<CAPTION>
FIDELITY FIDELITY FIDELITY
FREEDOM FREEDOM FREEDOM PARTICIPANT
2010 2020 2030 LOANS OTHER
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Dividends and interest $ 453 $ 854 $ 371 $ -- $ --
------------ ------------ ------------ ------------ ------------
Net realized and unrealized
appreciation/ depreciation on
investments 189 385 605 -- --
------------ ------------ ------------ ------------ ------------
642 1,239 976 -- --
Employer's contributions 1,029 1,618 1,567 -- 36,322
Participants' contributions 1,087 2,128 1,723 -- --
Transfers between funds, net 13,168 27,275 6,268 -- --
------------ ------------ ------------ ------------ ------------
15,284 31,021 9,558 -- 36,322
------------ ------------ ------------ ------------ ------------
Total additions 15,926 32,260 10,534 -- 36,322
Deductions from nets assets attributed to:
Distributions -- -- -- -- (32,650)
Loan withdrawals, net (136) (855) (801) (167,827) --
Administrative expenses -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Total deductions (136) (855) (801) (167,827) (32,650)
------------ ------------ ------------ ------------ ------------
Net increase (decrease) 16,062 33,115 11,335 167,827 68,972
Net Assets Available for Benefits,
At Beginning of Year -- -- -- 1,380,919 (127,594)
------------ ------------ ------------ ------------ ------------
Net Assets Available for Benefits,
At End of Year $ 16,062 $ 33,115 $ 11,335 $ 1,548,746 $ (58,622)
============ ============ ============ ============ ============
<CAPTION>
TOTAL
------------
<S> <C>
Additions to net assets attributed to:
Dividends and interest $ 1,681,116
------------
Net realized and unrealized
appreciation/ depreciation on
investments 2,196,260
------------
3,877,376
Employer's contributions 1,751,511
Participants' contributions 2,850,589
Transfers between funds, net --
------------
4,602,100
------------
Total additions 8,479,476
Deductions from nets assets attributed to:
Distributions 2,874,355
Loan withdrawals, net 297,507
Administrative expenses 123,770
------------
Total deductions 3,295,632
------------
Net increase (decrease) 5,183,844
Net Assets Available for Benefits,
At Beginning of Year 23,110,917
------------
Net Assets Available for Benefits,
At End of Year $ 28,294,761
============
</TABLE>
7
<PAGE> 8
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
<TABLE>
<CAPTION>
FUND INFORMATION
-----------------------------------------------------------------------------
PUTNAM MANAGED SPARTAN
VOYAGER INCOME US EQUITY EQUITY
FUND PORTFOLIO II PURITAN FUND INDEX INCOME
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Dividends and interest $ 602,107 $ 405,257 $ 138,780 $ 55,403 $ 41,074
Net realized and unrealized
appreciation/ depreciation on investments 1,407,530 -- 163,729 467,253 115,126
----------- ----------- ----------- ----------- -----------
2,009,637 405,257 302,509 522,656 156,200
Employer's contributions 514,920 485,424 152,271 175,031 57,109
Participants' contributions 905,237 726,430 247,737 321,956 107,143
Transfers between funds, net (793,706) (216,686) 9,834 253,699 276,268
----------- ----------- ----------- ----------- -----------
626,451 995,168 409,842 750,686 440,520
----------- ----------- ----------- ----------- -----------
Total additions 2,636,088 1,400,425 712,351 1,273,342 596,720
----------- ----------- ----------- ----------- -----------
Deductions from nets assets attributed to:
Distributions 898,342 744,295 197,834 204,101 40,282
Loan withdrawals, net 152,517 126,826 45,336 73,459 5,058
Administrative expenses 26,300 71,259 11,751 8,635 5,517
----------- ----------- ----------- ----------- -----------
Total deductions 1,077,159 942,380 254,921 286,195 50,857
----------- ----------- ----------- ----------- -----------
Net increase (decrease) 1,558,929 458,045 457,430 987,147 545,863
Net Assets Available for Benefits
At Beginning of Year 8,175,245 6,016,834 1,230,311 1,203,878 260,634
----------- ----------- ----------- ----------- -----------
Net Assets Available for Benefits
At End of Year $ 9,734,174 $ 6,474,879 $ 1,687,741 $ 2,191,025 $ 806,497
=========== =========== =========== =========== ===========
<CAPTION>
GATX DREYFUS TEMPLETON
COMMON NEW FOREIGN PARTICIPANT
STOCK LEADER FUND LOANS OTHER
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Dividends and interest $ 775 $ 18,562 $ 35,301 $ -- $ --
Net realized and unrealized
appreciation/ depreciation on investments 90,519 2,549 (26,363) -- --
----------- ----------- ----------- ----------- -----------
91,294 21,111 8,938 -- --
Employer's contributions 38,851 25,641 28,653 -- --
Participants' contributions 65,957 49,811 57,685 -- --
Transfers between funds, net 196,058 76,584 197,949 -- --
----------- ----------- ----------- ----------- -----------
300,866 152,036 284,287 -- --
----------- ----------- ----------- ----------- -----------
Total additions 392,160 173,147 293,225 -- --
----------- ----------- ----------- ----------- -----------
Deductions from nets assets attributed to:
Distributions 7,193 11,942 23,038 -- 71,043
Loan withdrawals, net 2,395 3,909 11,403 (228,756) --
Administrative expenses 377 175 191 -- (24,803)
----------- ----------- ----------- ----------- -----------
Total deductions 9,965 16,026 34,632 (228,756) 46,240
----------- ----------- ----------- ----------- -----------
Net increase (decrease) 382,195 157,121 258,593 228,756 (46,240)
Net Assets Available for Benefits
At Beginning of Year 72,966 53,121 39,280 1,152,163 (81,354)
----------- ----------- ----------- ----------- -----------
Net Assets Available for Benefits
At End of Year $ 455,161 $ 210,242 $ 297,873 $ 1,380,919 $ (127,594)
=========== =========== =========== =========== ===========
<CAPTION>
TOTAL
-----------
<S> <C>
Additions to net assets attributed to:
Dividends and interest $ 1,297,259
Net realized and unrealized
appreciation/ depreciation on investments 2,220,343
-----------
3,517,602
Employer's contributions 1,477,900
Participants' contributions 2,481,956
Transfers between funds, net --
-----------
3,959,856
-----------
Total additions 7,477,458
-----------
Deductions from nets assets attributed to:
Distributions 2,198,070
Loan withdrawals, net 192,147
Administrative expenses 99,402
-----------
Total deductions 2,489,619
-----------
Net increase (decrease) 4,987,839
Net Assets Available for Benefits
At Beginning of Year 18,123,078
-----------
Net Assets Available for Benefits
At End of Year $23,110,917
===========
</TABLE>
8
<PAGE> 9
GATX Logistics, Inc. Cash Accumulation Plan
Notes to Financial Statements
December 31, 1998
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.
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.
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 ($10,000 for the fiscal
year ended December 31, 1998) on elective deferrals according to section
402(g)(1) of the Internal Revenue Code. 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 compensation.
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% and four or more -
100%.
Effective January 1, 1999, the Plan's vesting policy was amended such that a
participant shall be fully vested at all times in the account value of his
employer contributions account.
9
<PAGE> 10
GATX Logistics, Inc. Cash Accumulation Plan
Notes to Financial Statements
December 31, 1998
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, Fidelity Freedom Income Fund, Fidelity Freedom 2000, Fidelity Freedom
2010, Fidelity Freedom 2020, Fidelity Freedom 2030, 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,
1998 was $182,320. 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):
<TABLE>
<CAPTION>
DECEMBER 31, 1998
-----------------
<S> <C>
Total employees participating 1,871
Putnam Voyager Fund 1,106
Managed Income Portfolio II 1,095
Puritan Fund 569
Spartan US Equity Index 598
Equity Income 308
GATX Common Stock 462
Dreyfus New Leaders 190
Templeton Foreign Fund 156
Fidelity Freedom Income Fund 5
Fidelity Freedom 2000 7
Fidelity Freedom 2010 17
Fidelity Freedom 2020 21
Fidelity Freedom 2030 24
</TABLE>
10
<PAGE> 11
GATX Logistics, Inc. Cash Accumulation Plan
Notes to Financial Statements
December 31, 1998
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, 1998
and 1997 were as follows:
<TABLE>
<CAPTION>
1998 1997
----------------------------------------------------------------
SHARES/UNITS COSTS SHARES/UNITS COSTS
----------------------------------------------------------------
<S> <C> <C> <C> <C>
Putnam Voyager Fund 525,673 $8,880,184 509,669 $ 8,052,461
Managed Income Portfolio II 6,918,638 6,918,638 6,456,274 6,456,274
Puritan Fund 114,658 2,111,490 86,696 1,536,718
Spartan US Equity Index 73,883 2,287,238 62,402 1,688,516
Equity Income 18,045 891,524 15,335 697,460
GATX Common Stock 73,125 1,106,523 29,006 361,589
Dreyfus New Leaders 6,188 270,603 4,709 207,771
Templeton Foreign Fund 33,030 334,495 29,832 320,604
Fidelity Freedom Income Fund 38 421 -- --
Fidelity Freedom 2000 70 866 -- --
Fidelity Freedom 2010 1,207 15,870 -- --
Fidelity Freedom 2020 2,374 32,729 -- --
Fidelity Freedom 2030 816 10,727 -- --
Participant Loans 1,548,746 1,548,746 1,380,919 1,380,919
----------- -----------
$24,410,054 $20,702,312
=========== ===========
</TABLE>
11
<PAGE> 12
GATX Logistics, Inc. Cash Accumulation Plan
Notes to Financial Statements
December 31, 1998
NOTE D - MASTER TRUST
The GATX Common Stock Fund is in a Master Trust which includes the stock funds
of three GATX Corporation, (the Parent), benefit plans: the GATX Corporation
Salaried Employee Retirement Savings Plan; the GATX Corporation Hourly Employee
Retirement Savings Plan; and the GATX Logistics, Inc. 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
============
</TABLE>
<TABLE>
<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 1.7% interest in the Master Trust.
12
<PAGE> 13
GATX Logistics, Inc. Cash Accumulation Plan
Notes to Financial Statements
December 31, 1998
NOTE E - FEDERAL INCOME TAX STATUS
The Plan has received a determination letter from the Internal Revenue Service
dated August 2, 1995, stating that the Plan is qualified under Section 401(a) of
the Internal Revenue Code (the "Code") and, therefore, the related trust is
exempt from taxation. Accordingly, the Plan is required to operate in conformity
with the Code to maintain its qualification. The Plan Administrator believes the
Plan is being operated in compliance with the applicable requirements of the
Code and, therefore, believes that the Plan is qualified and the related trust
is tax exempt.
NOTE F - 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 currently expects the project to be substantially complete by October
1999. The Company does not expect this project to have a significant effect on
plan operations.
13
<PAGE> 14
GATX Logistics, Inc. Cash Accumulation Plan
EIN No.: 592042072
Plan No.: 001
Line 27a--Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
DESCRIPTION OF
IDENTITY OF ISSUE INVESTMENT COST FAIR VALUE
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Putnam Voyager Fund 525,673 units $ 8,880,184 $11,522,839
MIP II 6,918,638 units 6,918,638 6,918,689
Puritan Fund 114,658 units 2,111,490 2,301,210
Spartan US Equity Index 73,883 units 2,287,238 3,247,951
Equity Income 18,045 units 891,524 1,002,423
GATX Common Stock* 73,125 units 1,106,523 1,221,231
Dreyfus New Leaders 6,188 units 270,603 255,620
Templeton Foreign Fund 33,030 units 334,495 277,124
Fidelity Freedom Income Fund 38 units 421 422
Fidelity Freedom 2000 70 units 866 863
Fidelity Freedom 2010 1,207 units 15,870 16,062
Fidelity Freedom 2020 2,374 units 32,729 33,115
Fidelity Freedom 2030 816 units 10,727 11,335
Participant Loans 8% per annum -- 1,548,746
----------------------------------
$24,410,054 $28,357,630
==================================
</TABLE>
*Indicates a party-in-interest
14
<PAGE> 15
<TABLE>
<CAPTION>
FAIR VALUE
OF ASSET ON
IDENTITY OF PARTY INVOLVED DESCRIPTION OF ASSETS PURCHASES SALES COST OF ASSET TRANSACTION DATE NET GAIN (LOSS)
- -----------------------------------------------------------------------------------------------------------------------------------
CATEGORY (iii)-- SERIES OF TRANSACTIONS IN EXCESS OF 5 PERCENT OF PLAN ASSETS
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Fidelity Management Putnam Voyager Fund $2,986,178 $ -- $2,986,178 $2,986,178 $ --
Trust Company -- 2,657,186 2,158,816 2,657,186 498,370
Fidelity Management Puritan 987,018 -- 987,018 987,018 --
Trust Company -- 450,053 412,246 450,053 37,807
Fidelity Management Managed Inc. Portfolio II 2,813,688 -- 2,813,688 2,813,688 --
Trust Company -- 2,351,325 2,351,325 2,351,325 --
Fidelity Management Spartan U.S. Equity Index 1,249,643 -- 1,249,643 1,249,643 --
Trust Company -- 812,564 650,918 812,564 161,646
Fidelity Management GATX Common Stock 978,242 -- 978,242 978,242 --
Trust Company -- 263,633 233,309 263,633 30,324
</TABLE>
There were no category (i), (ii) or (iv) reportable transactions during 1998.
Note: Lease rental and expense incurred with transaction are not applicable.
15
