<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1998
COMMISSION FILE NUMBER: 1-1927
------------
CELERON CORPORATION
EMPLOYEE SAVINGS PLAN
(FULL TITLE OF THE PLAN)
------------
THE GOODYEAR TIRE & RUBBER COMPANY
(NAME OF ISSUER OF THE SECURITIES)
1144 EAST MARKET STREET
AKRON, OHIO 44316-0001
(ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICE)
<PAGE> 2
CELERON CORPORATION
EMPLOYEE SAVINGS PLAN
ITEM 1. Not applicable.
ITEM 2. Not applicable.
ITEM 3. Not applicable.
ITEM 4. FINANCIAL STATEMENTS OF THE PLAN
The Financial Statements of the Celeron Corporation Employee Savings
Plan for the fiscal year ended December 31, 1998, together with the report of
PricewaterhouseCoopers LLP, independent accountants, are attached to this Annual
Report on Form 11-K as Annex A, and are by specific reference incorporated
herein and filed as a part of hereof. The Financial Statements and the Notes
thereto are presented in lieu of the financial statements required by Items 1, 2
and 3 of Form 11-K and were prepared in accordance with the financial reporting
requirements of the Employee Retirement Income Security Act of 1974.
EXHIBITS.
EXHIBIT 4. FIRST AMENDMENT TO THE PLAN. First Amendment to Celeron
Corporation Employee Savings Plan (January 1, 1997 Restatement), dated July 30,
1998.
EXHIBIT 23. CONSENT OF INDEPENDENT ACCOUNTS. Consent of
PricewaterhouseCoopers LLP, independent accountants, to incorporation by
reference of their report set forth at page 2 of Annex A to this Form 11-K in
Registration Statement No. 33-65185 on Form S-8.
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934,
THE PLAN ADMINISTRATOR HAS DULY CAUSED THIS ANNUAL REPORT TO BE SIGNED BY THE
UNDERSIGNED THEREUNTO DULY AUTHORIZED.
THE GOODYEAR TIRE & RUBBER COMPANY
(AS THE ISSUER) AND CELERON CORPORATION,
PLAN ADMINISTRATOR OF THE CELERON
CORPORATION EMPLOYEE SAVINGS PLAN
Dated: June 29, 1999 By: /s/ John W. Richardson
-------------------------------
John W. Richardson,
Vice President
of
The Goodyear Tire & Rubber Company
and
Vice President and Comptroller
of
Celeron Corporation
1
<PAGE> 3
ANNEX A
TO
FORM 11-K
CELERON CORPORATION
EMPLOYEE SAVINGS PLAN
* * * * *
FINANCIAL STATEMENTS
DECEMBER 31, 1998
<PAGE> 4
PRICEWATERHOUSECOOPERS [LOGO]
CELERON CORPORATION
EMPLOYEE SAVINGS PLAN
FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
<PAGE> 5
CELERON CORPORATION
EMPLOYEE SAVINGS PLAN
INDEX TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
================================================================================
PAGE
----
Report of Independent Accountants 2
Financial Statements:
Statement of Net Assets Available for Plan Benefits, with
Fund Information at December 31, 1998 and 1997
3-4
Statement of Changes in Net Assets Available for Plan
Benefits, with Fund Information for the Years Ended
December 31, 1998 and 1997 3-4
Notes to Financial Statements 5-16
Note: Certain schedules required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974 have been omitted because of
the absence of the conditions under which they are required.
<PAGE> 6
[PRICEWATERHOUSECOOPERS LETTERHEAD]
REPORT OF INDEPENDENT ACCOUNTANTS
To the Plan Administrator and Participants
of the Celeron Corporation Employee Savings
Plan (sponsored by Celeron Corporation)
In our opinion, the accompanying statement of net assets available for plan
benefits and the related statement of changes in net assets available for plan
benefits present fairly, in all material respects, the net assets available for
benefits of the Celeron Corporation Employee Savings Plan (the "Plan")
(sponsored by Celeron Corporation) at December 31, 1998 and 1997, and the
changes in net assets available for plan benefits for the years ended December
31, 1998 and 1997, in conformity with generally accepted accounting principles.
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 of these statements in accordance with
generally accepted auditing standards which 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,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for the opinion expressed
above.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The fund information in the statement of
net assets available for plan benefits and the statement of changes in net
assets available for plan benefits is presented for purposes of additional
analysis rather than to present the net assets available for plan benefits and
changes in net assets available for plan benefits of each fund. The fund
information is the responsibility of the Plan's management. The fund information
has been subjected to the auditing procedures applied in the 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.
/s/ PricewaterhouseCoopers LLP
June 18, 1999
<PAGE> 7
CELERON CORPORATION
EMPLOYEE SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
================================================================================
<TABLE>
<CAPTION>
(Dollars in Thousands) December 31, 1998
--------------------------------------------------------------------------------------------------
Fund Information
------------------------------------------------------------------------------
Conservative Moderate Aggressive
Stable Asset Asset Asset
Value Allocation Allocation Allocation
Total Fund Fund Fund Fund
----------------- ----------------- ----------------- ----------------- ------------------
<S> <C> <C> <C> <C> <C>
Plan's Interest in Master Trust
Representing Total Assets
Available for Plan Benefits $ 8,600 $ 1,610 $ 31 $ 168 $ 34
================= ================= ================= ================= =================
</TABLE>
<TABLE>
<CAPTION>
(Dollars in Thousands) December 31, 1998
-------------------------------------------------------------------------------------------------
Fund Information
-------------------------------------------------------------------------------------------------
S&P 500 Large Small International
Index Capitalization Capitalization Stock Company
Stock Equity Stock Equity Stock Equity Equity Stock
Fund Fund Fund Fund Fund
----------------- ----------------- ------------------ ----------------- -----------------
<S> <C> <C> <C> <C> <C>
Plan's Interest in Master Trust
Representing Total Assets
Available for Plan Benefits $ 4,298 $ 175 $ 185 $ 108 $ 1,785
================= ================= ================= ================= =================
</TABLE>
<TABLE>
<CAPTION>
(Dollars in Thousands) December 31, 1998
------------------
Fund Information
------------------
Loan
Fund
-----------------
<S> <C>
Plan's Interest in Master Trust
Representing Total Assets
Available for Plan Benefits $ 206
=================
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND
INFORMATION
================================================================================
<TABLE>
<CAPTION>
(Dollars in Thousands) For the Year Ended December 31, 1998
--------------------------------------------------------------------------------
Fund Information
-----------------------------------------------------------
Conservative Moderate
Stable Asset Asset
Value Allocation Allocation
Total Fund Fund Fund
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Increase in Assets:
Contributions:
Employer $ 119 $ -- $ -- $ --
Employee 361 69 10 20
----------------- ----------------- ----------------- -----------------
480 69 10 20
Investment Income from Plan's
Interest in Master Trust 823 123 5 27
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries 3,458 1,066 61 47
Administrative Expenses 7 4 -- --
----------------- ----------------- ----------------- -----------------
3,465 1,070 61 47
Transfers:
Transfers Between Plans -- -- -- --
Transfers Between Funds -- 669 14 (60
Loan Transfers To or From Plan -- -- -- --
Loans to Participants -- (24) (19) (2
Loan Repayments:
Principal -- 58 47 27
Interest -- 7 2 2
----------------- ----------------- ----------------- -----------------
-- 710 44 (33
----------------- ----------------- ----------------- -----------------
Increase (Decrease) in Assets During the Year (2,162) (168) (2) (33
Net Assets at Beginning of Year 10,762 1,778 33 201
----------------- ----------------- ----------------- -----------------
Net Assets at End of Year $ 8,600 $ 1,610 $ 31 $ 168
================= ================= ================= =================
</TABLE>
<TABLE>
<CAPTION>
(Dollars in Thousands) For the Year Ended December 31, 1998
---------------------------------------------------------------------------------
Fund Information
---------------------------------------------------------------------------------
Aggressive S&P 500 Large Small
Asset Index Capitalization Capitalization
Allocation Stock Equity Stock Equity Stock Equity
Fund Fund Fund Fund
------------------ ----------------- ----------------- ------------------
<S> <C> <C> <C> <C>
Increase in Assets:
Contributions:
Employer $ -- $ -- $ -- $ --
Employee 10 205 14 28
----------------- ----------------- ----------------- -----------------
10 205 14 28
Investment Income from Plan's
Interest in Master Trust 11 1,120 45 (12)
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries 55 1,394 61 35
Administrative Expenses -- 3 -- --
----------------- ----------------- ----------------- -----------------
55 1,397 61 35
Transfers:
Transfers Between Plans -- -- -- --
Transfers Between Funds (44) (70) (30) (234)
Loan Transfers To or From Plan -- -- -- --
Loans to Participants (1) (66) -- (3)
Loan Repayments:
Principal 37 264 10 26
Interest 2 22 2 2
----------------- ----------------- ----------------- -----------------
(6) 150 (18) (209)
----------------- ----------------- ----------------- -----------------
Increase (Decrease) in Assets During the Year (40) 78 (20) (228)
Net Assets at Beginning of Year 74 4,220 195 413
----------------- ----------------- ----------------- -----------------
Net Assets at End of Year $ 34 $ 4,298 $ 175 $ 185
================= ================= ================= =================
</TABLE>
<TABLE>
<CAPTION>
(Dollars in Thousands) For the Year Ended December 31, 1998
------------------------------------------------------------
Fund Information
------------------------------------------------------------
International
Stock Company
Equity Stock Loan
Fund Fund Fund
----------------- ----------------- ------------------
<S> <C> <C> <C>
Increase in Assets:
Contributions:
Employer $ -- $ 119 $ --
Employee 5 -- --
----------------- ----------------- -----------------
5 119 --
Investment Income from Plan's
Interest in Master Trust (5) (530) 39
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries 11 728 --
Administrative Expenses -- -- --
----------------- ----------------- -----------------
11 728 --
Transfers:
Transfers Between Plans -- -- --
Transfers Between Funds (19) (226) --
Loan Transfers To or From Plan -- -- --
Loans to Participants -- -- 115
Loan Repayments:
Principal 4 -- (473)
Interest -- -- (39)
----------------- ----------------- -----------------
(15) (226) (397)
----------------- ----------------- -----------------
Increase (Decrease) in Assets During the Year (26) (1,365) (358)
Net Assets at Beginning of Year 134 3,150 564
----------------- ----------------- -----------------
Net Assets at End of Year $ 108 $ 1,785 $ 206
================= ================= =================
</TABLE>
The accompanying notes are an integral part of these statements.
-3-
<PAGE> 8
CELERON CORPORATION
EMPLOYEE SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
================================================================================
<TABLE>
<CAPTION>
(Dollars in Thousands) December 31, 1997
--------------------------------------------------------------------------------------------------
Fund Information
------------------------------------------------------------------------------
Conservative Moderate Aggressive
Stable Asset Asset Asset
Value Allocation Allocation Allocation
Total Fund Fund Fund Fund
----------------- ----------------- ----------------- ----------------- ------------------
<S> <C> <C> <C> <C> <C>
Plan's Interest in Master Trust
Representing Total Assets
Available for Plan Benefits $ 10,762 $ 1,778 $ 33 $ 201 $ 74
================= ================= ================= ================= ==================
</TABLE>
<TABLE>
<CAPTION>
(Dollars in Thousands) December 31, 1997
--------------------------------------------------------------------------------------------------
Fund Information
--------------------------------------------------------------------------------------------------
S&P 500 Large Small International
Index Capitalization Capitalization Stock Company
Stock Equity Stock Equity Stock Equity Equity Stock
Fund Fund Fund Fund Fund
----------------- ----------------- ------------------ ----------------- ----------------
<S> <C> <C> <C> <C> <C>
Plan's Interest in Master Trust
Representing Total Assets
Available for Plan Benefits $ 4,220 $ 195 $ 413 $ 134 $ 3,150
================= ================= ================= ================= ================
</TABLE>
<TABLE>
<CAPTION>
(Dollars in Thousands) December 31, 1997
--------------------
Fund Information
--------------------
Loan
Fund
-----------------
<S> <C>
Plan's Interest in Master Trust
Representing Total Assets
Available for Plan Benefits $ 564
=================
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND
INFORMATION
================================================================================
<TABLE>
<CAPTION>
(Dollars in Thousands) For the Year Ended December 31, 1997
---------------------------------------------------------------------------------
Fund Information
-------------------------------------------------------------
Conservative Moderate
Stable Asset Asset
Value Allocation Allocation
Total Fund Fund Fund
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Increase in Assets:
Contributions:
Employer $ 151 $ -- $ -- $ --
Employee 548 130 11 29
----------------- ----------------- ----------------- -----------------
699 130 11 29
Investment Income from Plan's
Interest in Master Trust 1,939 117 3 36
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries 296 136 -- 4
Administrative Expenses 4 1 -- --
----------------- ----------------- ----------------- -----------------
300 137 -- 4
Transfers:
Transfers Between Plans -- -- -- --
Transfers Between Funds -- (184) (1) 8
Loan Transfers To or From Plan -- -- -- --
Loans to Participants -- (88) (2) (18
Loan Repayments:
Principal -- 61 8 14
Interest -- 12 2 2
----------------- ----------------- ----------------- -----------------
-- (199) 7 6
----------------- ----------------- ----------------- -----------------
Increase (Decrease) in Assets During the Year 2,338 (89) 21 67
Net Assets at Beginning of Year 8,424 1,867 12 134
----------------- ----------------- ----------------- -----------------
Net Assets at End of Year $ 10,762 $ 1,778 $ 33 $ 201
================= ================= ================= =================
</TABLE>
<TABLE>
<CAPTION>
(Dollars in Thousands) For the Year Ended December 31, 1997
---------------------------------------------------------------------------------
Fund Information
--------------------------------------------------------------------------------
Aggressive S&P 500 Large Small
Asset Index Capitalization Capitalization
Allocation Stock Equity Stock Equity Stock Equity
Fund Fund Fund Fund
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Increase in Assets:
Contributions:
Employer $ -- $ -- $ -- $ --
Employee 17 285 17 46
----------------- ----------------- ----------------- -----------------
17 285 17 46
Investment Income from Plan's
Interest in Master Trust 8 998 23 37
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries 2 72 -- --
Administrative Expenses -- 3 -- --
----------------- ----------------- ----------------- -----------------
2 75 -- --
Transfers:
Transfers Between Plans -- -- -- --
Transfers Between Funds 13 180 35 66
Loan Transfers To or From Plan -- -- -- --
Loans to Participants (8) (159) (6) (22
Loan Repayments:
Principal 11 159 16 22
Interest 2 28 1 5
----------------- ----------------- ----------------- -----------------
18 208 46 71
----------------- ----------------- ----------------- -----------------
Increase (Decrease) in Assets During the Year 41 1,416 86 154
Net Assets at Beginning of Year 33 2,804 109 259
----------------- ----------------- ----------------- -----------------
Net Assets at End of Year $ 74 $ 4,220 $ 195 $ 413
================= ================= ================= =================
</TABLE>
<TABLE>
<CAPTION>
(Dollars in Thousands) For the Year Ended December 31, 1997
------------------------------------------------------------
Fund Information
-----------------------------------------------------------
International
Stock Company
Equity Stock Loan
Fund Fund Fund
----------------- ----------------- -----------------
<S> <C> <C> <C>
Increase in Assets:
Contributions:
Employer $ -- $ 151 $ --
Employee 13 -- --
----------------- ----------------- -----------------
13 151 --
Investment Income from Plan's
Interest in Master Trust 5 659 53
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries -- 82 --
Administrative Expenses -- -- --
----------------- ----------------- -----------------
-- 82 --
Transfers:
Transfers Between Plans -- -- --
Transfers Between Funds 29 (146) --
Loan Transfers To or From Plan -- -- --
Loans to Participants (2) -- 305
Loan Repayments:
Principal 4 -- (295)
Interest 1 -- (53)
----------------- ----------------- -----------------
32 (146) (43)
----------------- ----------------- -----------------
Increase (Decrease) in Assets During the Year 50 582 10
Net Assets at Beginning of Year 84 2,568 554
----------------- ----------------- -----------------
Net Assets at End of Year $ 134 $ 3,150 $ 564
================= ================= =================
</TABLE>
The accompanying notes are an integral part of these statements.
-4-
<PAGE> 9
CELERON CORPORATION
EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
- --------------------------------------------------------------------------------
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
BASIS OF ACCOUNTING
The accounts of the Celeron Corporation Employee Savings Plan (the "Plan")
are maintained on the accrual basis of accounting and in accordance with
The Northern Trust Company (the "Trustee") Trust Agreement, effective as of
November 1, 1995.
TRUST ASSETS
Savings plans sponsored by The Goodyear Tire & Rubber Company and certain
subsidiaries (the "Company") maintain their assets in a master trust
administered by the Trustee. At December 31, 1998 and 1997 the Company
sponsored six savings plans. The Plan's undivided interest in the trust is
presented in the accompanying financial statements in accordance with the
allocation made by the Trustee. At December 31, 1998 and 1997, the Plan's
undivided interest in the master trust was 0.4% and 0.5%, respectively.
ASSET VALUATION
The majority of the assets of the Plan are valued at the fair market value.
Investments in the Company Stock Fund are valued at the last reported sales
price on the last business day of the month. If no sales were reported on
that date, the shares are valued at the last bid price. Investments held in
the Stable Value Fund are invested in various instruments that have a rate
of return, and are reported at contract value. Investments in the
Conservative Asset Allocation Fund, Moderate Asset Allocation Fund,
Aggressive Asset Allocation Fund, S&P 500 Index Stock Equity Fund, Small
Capitalization Stock Equity Fund, Large Capitalization Stock Equity Fund,
and the International Stock Equity Fund are valued based on units of
participation in commingled funds and mutual funds as reported by the fund
manager, which approximates fair market value. The allocation of assets,
interest and dividend income, and realized and unrealized appreciation and
depreciation is made based upon contributions received and benefits paid by
each participating plan on a monthly basis.
-5-
<PAGE> 10
CELERON CORPORATION
EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
- --------------------------------------------------------------------------------
INCOME RECOGNITION
Employer and employee contributions are recognized in Plan equity on the
accrual basis of accounting.
Dividend income is recorded on the ex-dividend date.
Interest income is recorded as earned.
Appreciation or depreciation on Company common stock distributed to
participants is the difference between the weighted average cost and the
current market value at the time of distribution.
CONCENTRATION OF CREDIT RISK
The Stable Value Fund of the Plan invests part of the fund in investment
contracts of financial institutions with strong credit ratings and has
established guidelines relative to diversification and maturities that
maintain safety and liquidity.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the basic financial
statements and related notes to financial statements. Changes in such
estimates may affect amounts reported in future years.
3. GENERAL DESCRIPTION AND OPERATION OF THE PLAN:
INCEPTION
The Plan is a defined contribution plan which became effective April l,
1985.
ELIGIBILITY AND VESTING
Effective July 31, 1998, there are no active participants in the Plan. At
the end of the 1997 Plan year, approximately 135 employees of the Company
were eligible with approximately 111 employees participating in the Plan.
-6-
<PAGE> 11
CELERON CORPORATION
EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
- --------------------------------------------------------------------------------
On July 30, 1998, the Company sold substantially all of the assets and
liabilities of its oil transportation business, which includes Celeron
Corporation, to Plains All American Inc., a subsidiary of Plains Resources
Inc. As a result of the sale, there are no longer any active participants
in the Plan; however, the account balances of each participant under the
Plan on July 31, 1998 are 100% vested and non-forfeitable.
CONTRIBUTIONS
Through July 30, 1998, eligible employees were able to contribute any whole
percent from 1% to 16% of earnings including wages, bonuses, commissions,
overtime and vacation pay into the Plan. Participating employees were able
to elect to invest their contributions in the Stable Value Fund,
Conservative Asset Allocation Fund, Moderate Asset Allocation Fund,
Aggressive Asset Allocation Fund, S&P 500 Index Stock Equity Fund, Small
Capitalization Stock Equity Fund, Large Capitalization Stock Equity Fund,
the International Stock Equity Fund, or in any combination of these eight
funds in multiples of 1%. The Company calculated and deducted employee
contributions from gross earnings each pay period based on the percent
elected by the employee. Employees were able to change their contribution
percent at any time up to the 15th day of the month for changes to be
effective on the first day of the following month. Employees were able to
transfer amounts attributable to employee contributions from one fund to
the other on a daily basis. Eligible employees could enroll in the Plan
effective on the 1st day of the month by enrolling by the 15th day of the
prior month. Employees were able to suspend their contributions at any time
effective immediately.
Effective July 31, 1998, participants are no longer permitted to make
contributions to the Plan, except for tax deferred contributions resulting
from salary reduction amounts with respect to compensation paid to the
participant on or before July 31, 1998. Consequently, the Company shall not
have any liability to make matching employer contributions under the Plan
except for those contributions related to the period ending July 31, 1998.
Employees who are 52 years of age or older are able to transfer employer
contributions from the Company Stock Fund into the Plan's other investment
funds.
The Plan has been established under section 401 of the Internal Revenue
Code. Therefore, employee and employer contributions to the Plan are not
subject to federal withholding tax, but are taxable when they are withdrawn
from the Plan.
-7-
<PAGE> 12
CELERON CORPORATION
EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
- --------------------------------------------------------------------------------
The Board of Directors of the Company determines the matching percent used
as the employer contribution for each Plan year. The Company matching
contributions are limited to the first 6% of employee contributions at the
rate of 50% and employee contributions are limited to $10,000 and $9,500 in
1998 and 1997, respectively.
INVESTMENTS
The Trustee of the Plan maintains the following ten funds under the Plan:
- Stable Value Fund - Employee contributions are invested in various
investment contracts which provide for rates of return for particular
periods of time.
- Conservative Asset Allocation Fund - Employee contributions are
invested in a commingled fund containing a portfolio of U.S. common
stocks and bonds which provide an investment return similar to a
portfolio invested 40% in the Russell 3000 Equity Index plus reinvested
dividends and 60% in bonds which compose the Lehman Aggregate Long-Term
Bond Index.
- Moderate Asset Allocation Fund - Employee contributions are invested
in a commingled fund containing a portfolio of U.S. common stocks and
bonds which provide an investment return similar to a portfolio
invested 60% in the Russell 3000 Equity Index plus reinvested dividends
and 40% in bonds which compose the Lehman Aggregate Long-Term Bond
Index.
- Aggressive Asset Allocation Fund - Employee contributions are invested
in a commingled fund containing a portfolio of U.S. common stocks,
international stocks, and bonds which provide an investment return
similar to a portfolio invested 65% in the Russell 3000 Equity Index
plus reinvested dividends, 15% in the MSCI EAFE Index, and 20% in bonds
which compose the Lehman Aggregate Long-Term Bond Index.
- S&P 500 Index Stock Equity Fund - Employee contributions are invested
in a commingled fund consisting of a portfolio of common stocks which
provide a return similar to the Standard and Poor's Composite Index of
500 stocks plus reinvested dividends.
-8-
<PAGE> 13
CELERON CORPORATION
EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
- --------------------------------------------------------------------------------
- Large Capitalization Stock Equity Fund - Employee contributions are
invested in a commingled fund containing a portfolio of common stocks
of medium and large companies that are expected to provide
better-than-average prospects for appreciation.
- Small Capitalization Stock Equity Fund - Employee contributions are
invested in a commingled fund containing a portfolio of common stocks
of small companies that are expected to provide long-term capital
growth.
- International Stock Equity Fund - Employee contributions are invested
in a commingled fund containing a portfolio of common stocks and debt
obligations of companies and governments located outside of the United
States that are expected to provide long-term capital growth.
- Loan Investment Fund - Employee contributions are transferred from
other funds into the Loan Investment Fund, and then loaned to the
participant. The interest rate on the loan is prime plus 1%.
- Company Stock Fund - Employer contributions are invested in Goodyear
common stock except for short-term investments needed for Plan
operations. During 1998, the price per share of Goodyear common stock
on The New York Stock Exchange Composite Transactions ranged from
$45.88 to $76.75 ($49.25 to $71.25 during 1997). The closing price per
share was $50.44 at December 31, 1998 ($63.63 at December 31, 1997).
PARTICIPANT ACCOUNTS
A Stable Value Fund, Conservative Asset Allocation Fund, Moderate Asset
Allocation Fund, Aggressive Asset Allocation Fund, S&P 500 Index Stock
Equity Fund, Small Capitalization Stock Equity Fund, Large Capitalization
Stock Equity Fund, the International Stock Equity Fund, Loan Investment
Fund, and Company Stock Fund have been established for each participant in
the Plan. All accounts are valued daily by the Trustee.
-9-
<PAGE> 14
CELERON CORPORATION
EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
- --------------------------------------------------------------------------------
Interest is automatically reinvested in each participant's respective
accounts. Price fluctuations and dividends in common stock of the Company
and companies in the Conservative Asset Allocation Fund, Moderate Asset
Allocation Fund, Aggressive Asset Allocation Fund, S&P 500 Index Stock
Equity Fund, Small Capitalization Stock Equity Fund, Large Capitalization
Stock Equity Fund, the International Stock Equity Fund, and the Company
Stock Fund are reflected in the unit value of the fund which affects the
value of the participants' accounts.
PLAN WITHDRAWALS AND DISTRIBUTIONS
Participants may withdraw vested amounts from their accounts if they:
- Attain the age of 59 1/2, or
- Qualify for a serious financial hardship.
The Internal Revenue Service (IRS) issued guidelines governing financial
hardship. Under the IRS guidelines, withdrawals are permitted for severe
financial hardship. Contributions to the Plan are suspended for 12 months
subsequent to a financial hardship withdrawal.
Participant vested amounts are payable upon retirement, death or other
termination of employment.
All withdrawals and distributions are valued as of the end of the month
they are processed, and are subject to federal income tax upon receipt. Any
non-vested Company contributions were forfeited and applied to reduce
future contributions by the Company. During 1998 and 1997, the Plan had
forfeiture credits in the amounts of $0 and $13,062, respectively.
LOAN INVESTMENT FUND
Eligible employees may borrow money from their participant accounts. The
minimum amount to be borrowed is $1,000. The maximum amount to be borrowed
is the lesser of $50,000 reduced by the highest outstanding balance of any
loan during the preceding twelve month period, or 50% of the participant's
vested account balance. Participants may have up to two loans outstanding
at any time. The interest rate charged will be a fixed rate which will be
established at the time of the loan application. The interest rate at the
beginning of 1998 was 9.50%, which decreased throughout the year to 8.75%
at the end of the plan year. The interest rate at the beginning of 1997 was
9.25%, but was changed to 9.50% at the end of March.
-10-
<PAGE> 15
CELERON CORPORATION
EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
- --------------------------------------------------------------------------------
Loan repayments, with interest, are made through payroll deductions. If a
loan is not repaid when due, the loan balance will be treated as a taxable
distribution from the Plan.
EXPENSES
Expenses of administering the Plan were paid partly by the Company and
partly by the Trust. The payment of Trustee's fees and brokerage
commissions associated with the Company Stock Fund are paid by the Company.
Expenses related to the asset management of the Investment Funds are paid
from such Funds which reduces the investment return reported and credited
to participant accounts.
TERMINATION PROVISIONS
The Company anticipates and believes that the Plan will continue, but
reserves the right to terminate the Plan.
4. RELATED PARTY TRANSACTIONS:
The Trustee serves as the fund manager of the S&P 500 Index Stock Equity
Fund.
The Company Stock Fund is designed primarily for investment in common stock
of the Company.
5. TAX STATUS OF PLAN:
The Plan has been amended since receipt of the last determination letter
dated August 15, 1995. On August 15, 1995, the IRS advised that the Plan is
qualified in accordance with the appropriate sections of the Internal
Revenue Code, and the trust established with the Plan constitutes a
qualified trust and is therefore exempt from federal income taxes. The Plan
Administrator is in the process of applying for a new determination letter
and does not anticipate that changes in the Plan or other events occurring
after the receipt of the IRS ruling will affect the qualification of the
Plan or the tax exempt status of the Trust.
-11-
<PAGE> 16
CELERON CORPORATION
EMPLOYEE SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
- --------------------------------------------------------------------------------
6. FINANCIAL DATA OF THE MASTER TRUST:
See pages 13 through 16 of these financial statements which set forth the
financial data of the master trust.
-12-
<PAGE> 17
THE GOODYEAR TIRE & RUBBER COMPANY
MASTER TRUST
STATEMENT OF NET ASSETS, WITH FUND INFORMATION
================================================================================
<TABLE>
<CAPTION>
(Dollars in Thousands) December 31, 1998
-------------------------------------------------------------------------------
Fund Information
----------------------------------------------------------
Conservative Moderate
Stable Asset Asset
Value Allocation Allocation
Total Fund Fund Fund
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Assets:
Investments at Fair Market Value:
State Street Income and Growth Fund,
Cost $21,581 - 1,766,916 Units $ 25,873 $ -- $ 25,873 $ --
State Street Moderate Asset Allocation
Fund, Cost $46,196 - 3,855,019 Units 65,003 -- -- 65,003
State Street Life Solutions Growth A,
Cost $19,647 - 1,374,562 Units 26,314 -- -- --
Collective Daily Stock Index Fund, Cost
$354,398 - 19,581,254 Units 595,064 -- -- --
Twentieth Century Investors Income
Ultra Fund, Cost $77,783 - 2,507,006 Units 83,563 -- -- --
Franklin Strategic Series Small Cap
Growth Fund, Cost $53,003 - 2,492,731 Units 56,414 -- -- --
Templeton Foreign Fund, Cost
$26,138 - 2,606,497 Units 21,876 -- -- --
Common Stock of The Goodyear Tire & Rubber
Company, Cost $220,470 - 8,437,850 Shares 424,953 -- -- --
Short-Term Investments 45,470 34,835 -- --
Promissory Notes 85,997 -- -- --
----------------- ----------------- ----------------- -----------------
1,430,527 34,835 25,873 65,003
----------------- ----------------- ----------------- -----------------
Investments at Contract Value:
Guaranteed Investment Contracts 687,488 687,488 -- --
----------------- ----------------- ----------------- -----------------
Receivables:
Employee Contributions -- -- -- --
Employer Contributions 54 -- -- --
Transfers -- (287) -- --
Accrued Interest and Dividends 940 740 2 27
----------------- ----------------- ----------------- -----------------
994 453 2 27
----------------- ----------------- ----------------- -----------------
Total Assets 2,119,009 722,776 25,875 65,030
----------------- ----------------- ----------------- -----------------
Liabilities:
Administrative Expenses Payable 57 36 -- --
----------------- ----------------- ----------------- -----------------
Total Liabilities 57 36 -- --
----------------- ----------------- ----------------- -----------------
Net Assets $ 2,118,952 $ 722,740 $ 25,875 $ 65,030
================= ================= ================= =================
</TABLE>
<TABLE>
<CAPTION>
(Dollars in Thousands) December 31, 1998
-----------------------------------------------------------------------------
Fund Information
-----------------------------------------------------------------------------
Aggressive S&P 500 Large Small
Asset Index Capitalization Capitalization
Allocation Stock Equity Stock Equity Stock Equity
Fund Fund Fund Fund
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Assets:
Investments at Fair Market Value:
State Street Income and Growth Fund,
Cost $21,581 - 1,766,916 Units $ -- $ -- $ -- $ --
State Street Moderate Asset Allocation
Fund, Cost $46,196 - 3,855,019 Units -- -- -- --
State Street Life Solutions Growth A,
Cost $19,647 - 1,374,562 Units 26,314 -- -- --
Collective Daily Stock Index Fund, Cost
$354,398 - 19,581,254 Units -- 595,064 -- --
Twentieth Century Investors Income
Ultra Fund, Cost $77,783 - 2,507,006 Units -- -- 83,563 --
Franklin Strategic Series Small Cap
Growth Fund, Cost $53,003 - 2,492,731 Units -- -- -- 56,414
Templeton Foreign Fund, Cost
$26,138 - 2,606,497 Units -- -- -- --
Common Stock of The Goodyear Tire & Rubber
Company, Cost $220,470 - 8,437,850 Shares -- -- -- --
Short-Term Investments -- -- -- --
Promissory Notes -- -- -- --
----------------- ----------------- ----------------- -----------------
26,314 595,064 83,563 56,414
----------------- ----------------- ----------------- -----------------
Investments at Contract Value:
Guaranteed Investment Contracts -- -- -- --
----------------- ----------------- ----------------- -----------------
Receivables:
Employee Contributions -- -- -- --
Employer Contributions -- -- -- --
Transfers -- -- -- --
Accrued Interest and Dividends 10 47 20 4
----------------- ----------------- ----------------- -----------------
10 47 20 4
----------------- ----------------- ----------------- -----------------
Total Assets 26,324 595,111 83,583 56,418
----------------- ----------------- ----------------- -----------------
Liabilities:
Administrative Expenses Payable -- 19 -- --
----------------- ----------------- ----------------- -----------------
Total Liabilities -- 19 -- --
----------------- ----------------- ----------------- -----------------
Net Assets $ 26,324 $ 595,092 $ 83,583 $ 56,418
================= ================= ================= =================
</TABLE>
<TABLE>
<CAPTION>
(Dollars in Thousands) December 31, 1998
---------------------------------------------------------
Fund Information
---------------------------------------------------------
International
Stock Company
Equity Stock Loan
Fund Fund Fund
----------------- ----------------- -----------------
<S> <C> <C> <C>
Assets:
Investments at Fair Market Value:
State Street Income and Growth Fund,
Cost $21,581 - 1,766,916 Units $ -- $ -- $ --
State Street Moderate Asset Allocation
Fund, Cost $46,196 - 3,855,019 Units -- -- --
State Street Life Solutions Growth A,
Cost $19,647 - 1,374,562 Units -- -- --
Collective Daily Stock Index Fund, Cost
$354,398 - 19,581,254 Units -- -- --
Twentieth Century Investors Income
Ultra Fund, Cost $77,783 - 2,507,006 Units -- -- --
Franklin Strategic Series Small Cap
Growth Fund, Cost $53,003 - 2,492,731 Units -- -- --
Templeton Foreign Fund, Cost
$26,138 - 2,606,497 Units 21,876 -- --
Common Stock of The Goodyear Tire & Rubber
Company, Cost $220,470 - 8,437,850 Shares -- 424,953 --
Short-Term Investments -- 10,635 --
Promissory Notes -- -- 85,997
----------------- ----------------- -----------------
21,876 435,588 85,997
----------------- ----------------- -----------------
Investments at Contract Value:
Guaranteed Investment Contracts -- -- --
----------------- ----------------- -----------------
Receivables:
Employee Contributions -- -- --
Employer Contributions -- 54 --
Transfers -- -- 287
Accrued Interest and Dividends 2 81 7
----------------- ----------------- -----------------
2 135 294
----------------- ----------------- -----------------
Total Assets 21,878 435,723 86,291
----------------- ----------------- -----------------
Liabilities:
Administrative Expenses Payable -- 2 --
----------------- ----------------- -----------------
Total Liabilities -- 2 --
----------------- ----------------- -----------------
Net Assets $ 21,878 $ 435,721 $ 86,291
================= ================= =================
</TABLE>
-13-
<PAGE> 18
THE GOODYEAR TIRE & RUBBER COMPANY
MASTER TRUST
STATEMENT OF NET ASSETS, WITH FUND INFORMATION
================================================================================
<TABLE>
<CAPTION>
(Dollars in Thousands) December 31, 1997
------------------------------------------------------------------------------
Fund Information
---------------------------------------------------------
Conservative Moderate
Stable Asset Asset
Value Allocation Allocation
Total Fund Fund Fund
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Assets:
Investments at Fair Market Value:
State Street Income and Growth Fund,
Cost $14,517 - 1,289,423 Units $ 16,463 $ -- $ 16,463 $ --
State Street Moderate Asset Allocation
Fund, Cost $41,282 - 3,675,050 Units 53,127 -- -- 53,127
State Street Life Solutions Growth A,
Cost $15,514 - 1,179,187 Units 18,931 -- -- --
Collective Daily Stock Index Fund, Cost
$306,918 - 19,116,281 Units 451,335 -- -- --
Twentieth Century Investors Income
Ultra Fund, Cost $45,978 - 1,555,172 Units 42,456 -- -- --
Franklin Strategic Series Small Cap
Growth Fund, Cost $58,150 - 2,732,539 Units 62,657 -- -- --
Templeton Foreign Fund, Cost
$26,699 - 2,573,654 Units 25,608 -- -- --
Common Stock of The Goodyear Tire & Rubber
Company, Cost $207,812 - 8,275,576 Shares 526,534 -- -- --
Short-Term Investments 24,286 12,310 -- --
Promissory Notes 85,517 -- -- --
----------------- ----------------- ----------------- -----------------
1,306,914 12,310 16,463 53,127
----------------- ----------------- ----------------- -----------------
Investments at Contract Value:
Guaranteed Investment Contracts 656,767 656,767 -- --
----------------- ----------------- ----------------- -----------------
Receivables:
Employee Contributions -- -- -- --
Employer Contributions 12 -- -- --
Transfers -- 723 128 5
Accrued Interest and Dividends 1,886 1,160 3 11
----------------- ----------------- ----------------- -----------------
1,898 1,883 131 16
----------------- ----------------- ----------------- -----------------
Total Assets 1,965,579 670,960 16,594 53,143
----------------- ----------------- ----------------- -----------------
Liabilities:
Administrative Expenses Payable 113 72 -- --
----------------- ----------------- ----------------- -----------------
Total Liabilities 113 72 -- --
----------------- ----------------- ----------------- -----------------
Net Assets $ 1,965,466 $ 670,888 $ 16,594 $ 53,143
================= ================= ================= =================
</TABLE>
<TABLE>
<CAPTION>
(Dollars in Thousands) December 31, 1997
----------------------------------------------------------------------------
Fund Information
----------------------------------------------------------------------------
Aggressive S&P 500 Large Small
Asset Index Capitalization Capitalization
Allocation Stock Equity Stock Equity Stock Equity
Fund Fund Fund Fund
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Assets:
Investments at Fair Market Value:
State Street Income and Growth Fund,
Cost $14,517 - 1,289,423 Units $ -- $ -- $ -- $ --
State Street Moderate Asset Allocation
Fund, Cost $41,282 - 3,675,050 Units -- -- -- --
State Street Life Solutions Growth A,
Cost $15,514 - 1,179,187 Units 18,931 -- -- --
Collective Daily Stock Index Fund, Cost
$306,918 - 19,116,281 Units -- 451,335 -- --
Twentieth Century Investors Income
Ultra Fund, Cost $45,978 - 1,555,172 Units -- -- 42,456 --
Franklin Strategic Series Small Cap
Growth Fund, Cost $58,150 - 2,732,539 Units -- -- -- 62,657
Templeton Foreign Fund, Cost
$26,699 - 2,573,654 Units -- -- -- --
Common Stock of The Goodyear Tire & Rubber
Company, Cost $207,812 - 8,275,576 Shares -- -- -- --
Short-Term Investments -- -- -- --
Promissory Notes -- -- -- --
----------------- ----------------- ----------------- -----------------
18,931 451,335 42,456 62,657
----------------- ----------------- ----------------- -----------------
Investments at Contract Value:
Guaranteed Investment Contracts -- -- -- --
----------------- ----------------- ----------------- -----------------
Receivables:
Employee Contributions -- -- -- --
Employer Contributions -- -- -- --
Transfers (1) (1,081) 82 97
Accrued Interest and Dividends 4 535 9 12
----------------- ----------------- ----------------- -----------------
3 (546) 91 109
----------------- ----------------- ----------------- -----------------
Total Assets 18,934 450,789 42,547 62,766
----------------- ----------------- ----------------- -----------------
Liabilities:
Administrative Expenses Payable -- 41 -- --
----------------- ----------------- ----------------- -----------------
Total Liabilities -- 41 -- --
----------------- ----------------- ----------------- -----------------
Net Assets $ 18,934 $ 450,748 $ 42,547 $ 62,766
================= ================= ================= =================
</TABLE>
<TABLE>
<CAPTION>
(Dollars in Thousands) December 31, 1997
-----------------------------------------------------------
Fund Information
-----------------------------------------------------------
International
Stock Company
Equity Stock Loan
Fund Fund Fund
----------------- ----------------- -----------------
<S> <C> <C> <C>
Assets:
Investments at Fair Market Value:
State Street Income and Growth Fund,
Cost $14,517 - 1,289,423 Units $ -- $ -- $ --
State Street Moderate Asset Allocation
Fund, Cost $41,282 - 3,675,050 Units -- -- --
State Street Life Solutions Growth A,
Cost $15,514 - 1,179,187 Units -- -- --
Collective Daily Stock Index Fund, Cost
$306,918 - 19,116,281 Units -- -- --
Twentieth Century Investors Income
Ultra Fund, Cost $45,978 - 1,555,172 Units -- -- --
Franklin Strategic Series Small Cap
Growth Fund, Cost $58,150 - 2,732,539 Units -- -- --
Templeton Foreign Fund, Cost
$26,699 - 2,573,654 Units 25,608 -- --
Common Stock of The Goodyear Tire & Rubber
Company, Cost $207,812 - 8,275,576 Shares -- 526,534 --
Short-Term Investments -- 11,976 --
Promissory Notes -- -- 85,517
----------------- ----------------- -----------------
25,608 538,510 85,517
----------------- ----------------- -----------------
Investments at Contract Value:
Guaranteed Investment Contracts -- -- --
----------------- ----------------- -----------------
Receivables:
Employee Contributions -- -- --
Employer Contributions -- 12 --
Transfers (260) (18) 325
Accrued Interest and Dividends (6) 168 (10)
----------------- ----------------- -----------------
(266) 162 315
----------------- ----------------- -----------------
Total Assets 25,342 538,672 85,832
----------------- ----------------- -----------------
Liabilities:
Administrative Expenses Payable -- -- --
----------------- ----------------- -----------------
Total Liabilities -- -- --
----------------- ----------------- -----------------
Net Assets $ 25,342 $ 538,672 $ 85,832
================= ================= =================
</TABLE>
-14-
<PAGE> 19
THE GOODYEAR TIRE & RUBBER COMPANY
MASTER TRUST
STATEMENT OF CHANGES IN NET ASSETS, WITH FUND INFORMATION
================================================================================
<TABLE>
<CAPTION>
(Dollars in Thousands) For the Year Ended December 31, 1998
-------------------------------------------------------------------------------
Fund Information
-----------------------------------------------------------
Conservative Moderate
Stable Asset Asset
Value Allocation Allocation
Total Fund Fund Fund
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Increase in Assets:
Contributions:
Employer $ 41,179 $ 296 $ -- $ --
Employee 127,675 57,837 1,690 6,746
----------------- ----------------- ----------------- -----------------
168,854 58,133 1,690 6,746
Interest and Dividend Income 63,486 43,675 2 27
Net Appreciation (Depreciation)
in Fair Market Value of Assets 50,525 -- 2,837 9,261
----------------- ----------------- ----------------- -----------------
114,011 43,675 2,839 9,288
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries 127,891 67,110 1,104 3,146
Administrative Expenses 1,488 911 -- --
----------------- ----------------- ----------------- -----------------
129,379 68,021 1,104 3,146
Transfers:
Transfers Between Plans -- -- -- --
Transfers Between Funds -- 12,142 5,859 (1,010)
Loan Transfers To or From Plan -- -- -- --
Loans to Participants -- (22,562) (470) (1,479)
Loan Repayments:
Principal -- 24,264 406 1,272
Interest -- 4,221 61 216
----------------- ----------------- ----------------- -----------------
-- 18,065 5,856 (1,001)
----------------- ----------------- ----------------- -----------------
Increase (Decrease) in Assets During Year 153,486 51,852 9,281 11,887
Net Assets at Beginning of Year 1,965,466 670,888 16,594 53,143
----------------- ----------------- ----------------- -----------------
Net Assets at End of Year $ 2,118,952 $ 722,740 $ 25,875 $ 65,030
================= ================= ================= =================
</TABLE>
<TABLE>
<CAPTION>
(Dollars in Thousands) For the Year Ended December 31, 1998
------------------------------------------------------------------------------------
Fund Information
------------------------------------------------------------------------------------
Aggressive S&P 500 Large Small
Asset Index Capitalization Capitalization
Allocation Stock Equity Stock Equity Stock Equity
Fund Fund Fund Fund
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Increase in Assets:
Contributions:
Employer $ -- $ -- $ -- $ --
Employee 3,310 42,779 6,224 6,212
----------------- ----------------- ----------------- -----------------
3,310 42,779 6,224 6,212
Interest and Dividend Income 10 47 20 803
Net Appreciation (Depreciation)
in Fair Market Value of Assets 3,949 129,561 16,582 (476)
----------------- ----------------- ----------------- -----------------
3,959 129,608 16,602 327
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries 1,056 24,280 1,868 2,044
Administrative Expenses -- 577 -- --
----------------- ----------------- ----------------- -----------------
1,056 24,857 1,868 2,044
Transfers:
Transfers Between Plans -- -- -- --
Transfers Between Funds 1,036 (3,564) 19,945 (11,347)
Loan Transfers To or From Plan -- -- -- --
Loans to Participants (759) (15,509) (1,864) (1,260)
Loan Repayments:
Principal 775 13,463 1,699 1,509
Interest 125 2,424 298 255
----------------- ----------------- ----------------- -----------------
1,177 (3,186) 20,078 (10,843)
----------------- ----------------- ----------------- -----------------
Increase (Decrease) in Assets During Year 7,390 144,344 41,036 (6,348)
Net Assets at Beginning of Year 18,934 450,748 42,547 62,766
----------------- ----------------- ----------------- -----------------
Net Assets at End of Year $ 26,324 $ 595,092 $ 83,583 $ 56,418
================= ================= ================= =================
</TABLE>
<TABLE>
<CAPTION>
(Dollars in Thousands) For the Year Ended December 31, 1998
------------------------------------------------------------
Fund Information
------------------------------------------------------------
International
Stock Company
Equity Stock Loan
Fund Fund Fund
----------------- ----------------- -----------------
<S> <C> <C> <C>
Increase in Assets:
Contributions:
Employer $ -- $ 40,883 $ --
Employee 2,877 -- --
----------------- ----------------- -----------------
2,877 40,883 --
Interest and Dividend Income 614 10,594 7,694
Net Appreciation (Depreciation)
in Fair Market Value of Assets (2,001) (109,188) --
----------------- ----------------- -----------------
(1,387) (98,594) 7,694
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries 1,083 26,200 --
Administrative Expenses -- -- --
----------------- ----------------- -----------------
1,083 26,200 --
Transfers:
Transfers Between Plans -- -- --
Transfers Between Funds (4,021) (19,040) --
Loan Transfers To or From Plan -- -- --
Loans to Participants (512) -- 44,415
Loan Repayments:
Principal 570 -- (43,958)
Interest 92 -- (7,692)
----------------- ----------------- -----------------
(3,871) (19,040) (7,235)
----------------- ----------------- -----------------
Increase (Decrease) in Assets During Year (3,464) (102,951) 459
Net Assets at Beginning of Year 25,342 538,672 85,832
----------------- ----------------- -----------------
Net Assets at End of Year $ 21,878 $ 435,721 $ 86,291
================= ================= =================
</TABLE>
-15-
<PAGE> 20
\
THE GOODYEAR TIRE & RUBBER COMPANY
MASTER TRUST
STATEMENT OF CHANGES IN NET ASSETS, WITH FUND INFORMATION
================================================================================
<TABLE>
<CAPTION>
(Dollars in Thousands) For the Year Ended December 31, 1997
--------------------------------------------------------------------------------
Fund Information
----------------------------------------------------------
Conservative Moderate
Stable Asset Asset
Value Allocation Allocation
Total Fund Fund Fund
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Increase in Assets:
Contributions:
Employer $ 38,672 $ 350 $ -- $ --
Employee 117,000 61,243 1,027 5,376
----------------- ----------------- ----------------- -----------------
155,672 61,593 1,027 5,376
Interest and Dividend Income 71,550 42,776 (9) (47)
Net Appreciation (Depreciation)
in Fair Market Value of Assets 217,853 -- 1,776 8,390
----------------- ----------------- ----------------- -----------------
289,403 42,776 1,767 8,343
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries 104,377 55,553 624 2,118
Administrative Expenses 595 410 -- --
----------------- ----------------- ----------------- -----------------
104,972 55,963 624 2,118
Transfers:
Transfers Between Plans -- -- -- --
Transfers Between Funds -- (48,549) 6,977 6,446
Loan Transfers To or From Plan -- -- -- --
Loans to Participants -- (25,459) (212) (1,264)
Loan Repayments:
Principal -- 24,568 244 1,114
Interest -- 4,524 43 188
----------------- ----------------- ----------------- -----------------
-- (44,916) 7,052 6,484
----------------- ----------------- ----------------- -----------------
Increase in Assets During Year 340,103 3,490 9,222 18,085
Net Assets at Beginning of Year 1,625,363 667,398 7,372 35,058
----------------- ----------------- ----------------- -----------------
Net Assets at End of Year $ 1,965,466 $ 670,888 $ 16,594 $ 53,143
================= ================= ================= =================
</TABLE>
<TABLE>
<CAPTION>
(Dollars in Thousands) For the Year Ended December 31, 1997
--------------------------------------------------------------------------------
Fund Information
--------------------------------------------------------------------------------
Aggressive S&P 500 Large Small
Asset Index Capitalization Capitalization
Allocation Stock Equity Stock Equity Stock Equity
Fund Fund Fund Fund
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Increase in Assets:
Contributions:
Employer $ -- $ -- $ -- $ --
Employee 2,270 34,307 4,097 5,915
----------------- ----------------- ----------------- -----------------
2,270 34,307 4,097 5,915
Interest and Dividend Income (17) 13 8,601 2,641
Net Appreciation (Depreciation)
in Fair Market Value of Assets 2,641 101,723 (2,607) 3,719
----------------- ----------------- ----------------- -----------------
2,624 101,736 5,994 6,360
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries 702 16,633 803 1,686
Administrative Expenses -- 173 -- --
----------------- ----------------- ----------------- -----------------
702 16,806 803 1,686
Transfers:
Transfers Between Plans -- -- -- --
Transfers Between Funds 1,813 42,872 7,741 6,469
Loan Transfers To or From Plan -- -- -- --
Loans to Participants (491) (13,612) (1,256) (1,666)
Loan Repayments:
Principal 574 10,384 972 1,391
Interest 100 1,967 192 269
----------------- ----------------- ----------------- -----------------
1,996 41,611 7,649 6,463
----------------- ----------------- ----------------- -----------------
Increase in Assets During Year 6,188 160,848 16,937 17,052
Net Assets at Beginning of Year 12,746 289,900 25,610 45,714
----------------- ----------------- ----------------- -----------------
Net Assets at End of Year $ 18,934 $ 450,748 $ 42,547 $ 62,766
================= ================= ================= =================
</TABLE>
<TABLE>
<CAPTION>
(Dollars in Thousands) For the Year Ended December 31, 1997
-----------------------------------------------------------
Fund Information
-----------------------------------------------------------
International
Stock Company
Equity Stock Loan
Fund Fund Fund
----------------- ----------------- -----------------
<S> <C> <C> <C>
Increase in Assets:
Contributions:
Employer $ -- $ 38,322 $ --
Employee 2,765 -- --
----------------- ----------------- -----------------
2,765 38,322 --
Interest and Dividend Income 762 9,577 7,253
Net Appreciation (Depreciation)
in Fair Market Value of Assets 531 101,680 --
----------------- ----------------- -----------------
1,293 111,257 7,253
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries 568 25,690 --
Administrative Expenses -- 12 --
----------------- ----------------- -----------------
568 25,702 --
Transfers:
Transfers Between Plans -- -- --
Transfers Between Funds 4,792 (28,561) --
Loan Transfers To or From Plan -- -- --
Loans to Participants (565) -- 44,525
Loan Repayments:
Principal 501 -- (39,748)
Interest 89 -- (7,372)
----------------- ----------------- -----------------
4,817 (28,561) (2,595)
----------------- ----------------- -----------------
Increase in Assets During Year 8,307 95,316 4,658
Net Assets at Beginning of Year 17,035 443,356 81,174
----------------- ----------------- -----------------
Net Assets at End of Year $ 25,342 $ 538,672 $ 85,832
================= ================= =================
</TABLE>
-16-
<PAGE> 1
EXHIBIT 4
FIRST AMENDMENT
TO
CELERON CORPORATION
EMPLOYEE SAVINGS PLAN
(JANUARY 1, 1997 RESTATEMENT)
The Celeron Corporation Employee Savings Plan (the "Plan"), originally
established effective as of April 1, 1985, and amended and restated most
recently as of January 1, 1997, is hereby further amended, effective as of July
31, 1998, by the addition of new Article XXII to the Plan, in the form attached
hereto and made a part hereof.
- - -
EXECUTED at Akron, Ohio, this 30th day of July, 1998.
CELERON CORPORATION
BY: /s/ Richard W. Hauman
----------------------------------
Richard W. Hauman, Vice President
Attest:
/s/ James Boyazis
- ----------------------------------------
James Boyazis, Assistant Secretary
<PAGE> 2
ARTICLE XXII
CELERON CORPORATION
EMPLOYEE SAVINGS PLAN
PROVISIONS APPLICABLE
AFTER JULY 31, 1998
22.1 Eligibility to Participate.
---------------------------
Notwithstanding anything to the contrary contained in the Plan, an
Employee, or any other person, who was not a Participant under the Plan
on July 31, 1998, shall not be eligible to become a Participant under
the Plan after July 31, 1998.
22.2 Contributions.
--------------
Notwithstanding anything to the contrary contained in the Plan, after
July 31, 1998, (a) a Participant shall not have any right to have
Tax-Deferred Contributions made to the Plan on his behalf, except for
Tax-Deferred Contributions resulting from salary reduction amounts with
respect to Compensation paid to the Participant on or before July 31,
1998, (b) a participant shall not have the right to make After-Tax
Contributions to the Plan, and (c) the Company shall not have any
liability to make further Matching Employer Contributions under the
Plan, except for the Matching Employer Contribution for the period
ending July 31, 1998.
22.3 Vesting.
--------
Notwithstanding anything to the contrary contained in the Plan, the
account balance of each Participant under the Plan on July 31, 1998,
shall be 100% vested and non-forfeitable.
<PAGE> 1
EXHIBIT 23
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (No. 33-65185) of The Goodyear Tire & Rubber Company of
our report dated June 18, 1999 appearing at page 2 of Annex A of this Form 11-K.
/s/ PricewaterhouseCoopers LLP
PRICEWATERHOUSECOOPERS LLP
Cleveland, Ohio
June 29, 1999
