<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
------
THE GOODYEAR TIRE & RUBBER COMPANY
EMPLOYEE SAVINGS PLAN FOR HOURLY EMPLOYEES
(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
THE GOODYEAR TIRE & RUBBER COMPANY
EMPLOYEE SAVINGS PLAN FOR HOURLY EMPLOYEES
ITEM 1. Not applicable.
ITEM 2. Not applicable.
ITEM 3. Not applicable.
ITEM 4. FINANCIAL STATEMENTS OF THE PLAN.
The Financial Statements of The Goodyear Tire & Rubber Company Employee
Savings Plan for Hourly Employees 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 The Goodyear
Tire & Rubber Company Employee Savings Plan for Hourly Employees (January 1,
1997 Restatement), dated December 22, 1998.
EXHIBIT 23. CONSENT OF INDEPENDENT ACCOUNTANTS. 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. 33-65181 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,
PLAN ADMINISTRATOR OF THE GOODYEAR TIRE &
RUBBER COMPANY EMPLOYEE SAVINGS PLAN FOR
HOURLY EMPLOYEES
Dated: June 29, 1999 By: /s/ John W. Richardson
----------------------------------
John W. Richardson, Vice President
1
<PAGE> 3
ANNEX A
TO
FORM 11-K
THE GOODYEAR TIRE & RUBBER COMPANY
EMPLOYEE SAVINGS PLAN FOR HOURLY EMPLOYEES
* * * * *
FINANCIAL STATEMENTS
DECEMBER 31, 1998
<PAGE> 4
[PRICEWATERHOUSECOOPERS LOGO]
THE GOODYEAR TIRE & RUBBER COMPANY
EMPLOYEE SAVINGS PLAN
FOR HOURLY EMPLOYEES
FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
<PAGE> 5
THE GOODYEAR TIRE & RUBBER COMPANY
EMPLOYEE SAVINGS PLAN FOR HOURLY EMPLOYEES
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 Employee Savings Plan for Hourly
Employees (sponsored by The Goodyear Tire
& Rubber Company)
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 Employee Savings Plan for Hourly Employees (the "Plan")
(sponsored by The Goodyear Tire & Rubber Company) 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
THE GOODYEAR TIRE & RUBBER COMPANY
EMPLOYEE SAVINGS PLAN FOR HOURLY EMPLOYEES
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Dollars in Thousands) December 31, 1998
------------------------------------------------------------------
Fund Information
-------------------------------------------------------
Conservative Moderate Aggressive S&P 500
Stable Asset Asset Asset Index
Value Allocation Allocation Allocation Stock Equity
Total Fund Fund Fund Fund Fund
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Plan's Interest in Master Trust
Representing Total Assets
Available for Plan Benefits $ 40,583 $ 11,753 $ 59 $ 369 $ 188 $ 13,701
======== ======== ======== ======== ======== ========
<CAPTION>
(Dollars in Thousands) December 31, 1998
------------------------------------------------------------------
Fund Information
------------------------------------------------------------------
Large Small International
Capitalization Capitalization Stock Company
Stock Equity Stock Equity Equity Stock Loan
Fund Fund Fund Fund Fund
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Plan's Interest in Master Trust
Representing Total Assets
Available for Plan Benefits $ 1,671 $ 964 $ 189 $ 8,615 $ 3,074
======== ======== ======== ======== ========
</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 Aggressive S&P 500
Stable Asset Asset Asset Index
Value Allocation Allocation Allocation Stock Equity
Total Fund Fund Fund Fund Fund
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Increase in Assets:
Contributions:
Employer $ 618 $ - $ - $ - $ - $ -
Employee 2,108 1,064 14 47 34 764
-------- -------- -------- -------- -------- --------
2,726 1,064 14 47 34 764
Investment Income from Plan's
Interest in Master Trust 2,316 741 8 54 32 2,950
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries 2,472 1,738 5 1 1 342
Administrative Expenses 28 17 - - - 11
-------- -------- -------- -------- -------- --------
2,500 1,755 5 1 1 353
Transfers:
Transfers Between Plans (218) - - - (1) (180)
Transfers Between Funds - 102 (20) (45) (16) (455)
Loan Transfers To or From Plan - - - - - -
Loans to Participants - (635) (11) (17) (32) (663)
Loan Repayments:
Principal - 888 8 17 12 516
Interest - 152 1 3 3 95
-------- -------- -------- -------- -------- --------
(218) 507 (22) (42) (34) (687)
-------- -------- -------- -------- -------- --------
Increase (Decrease) in Assets
During the Year 2,324 557 (5) 58 31 2,674
Net Assets at Beginning of Year 38,259 11,196 64 311 157 11,027
-------- -------- -------- -------- -------- --------
Net Assets at End of Year $ 40,583 $ 11,753 $ 59 $ 369 $ 188 $ 13,701
======== ======== ======== ======== ======== ========
<CAPTION>
(Dollars in Thousands) For the Year Ended December 31, 1998
---------------------------------------------------------------
Fund Information
---------------------------------------------------------------
Large Small International
Capitalization Capitalization Stock Company
Stock Equity Stock Equity Equity Stock Loan
Fund Fund Fund Fund Fund
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Increase in Assets:
Contributions:
Employer $ - $ - $ - $ 618 $ -
Employee 68 82 35 - -
-------- -------- -------- -------- --------
68 82 35 618 -
Investment Income from Plan's
Interest in Master Trust 150 86 (12) (1,967) 274
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries 3 3 - 379 -
Administrative Expenses - - - - -
-------- -------- -------- -------- --------
3 3 - 379 -
Transfers:
Transfers Between Plans - - - (37) -
Transfers Between Funds 946 (57) (64) (391) -
Loan Transfers To or From Plan - - - -
Loans to Participants (104) (30) (8) - 1,500
Loan Repayments:
Principal 57 41 21 - (1,560)
Interest 9 10 1 - (274)
-------- -------- -------- -------- --------
908 (36) (50) (428) (334)
-------- -------- -------- -------- --------
Increase (Decrease) in Assets
During the Year 1,123 129 (27) (2,156) (60)
Net Assets at Beginning of Year 548 835 216 10,771 3,134
-------- -------- -------- -------- --------
Net Assets at End of Year $ 1,671 $ 964 $ 189 $ 8,615 $ 3,074
======== ======== ======== ======== ========
</TABLE>
The accompanying notes are an integral part of these statements.
-3-
<PAGE> 8
THE GOODYEAR TIRE & RUBBER COMPANY
EMPLOYEE SAVINGS PLAN FOR HOURLY EMPLOYEES
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(Dollars in Thousands) December 31, 1997
-----------------------------------------------------------------------
Fund Information
------------------------------------------------------------
Conservative Moderate Aggressive S&P 500
Stable Asset Asset Asset Index
Value Allocation Allocation Allocation Stock Equity
Total Fund Fund Fund Fund Fund
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Plan's Interest in Master Trust
Representing Total Assets
Available for Plan Benefits $38,259 $11,196 $ 64 $ 311 $ 157 $11,027
======= ======= ======= ======= ======= =======
<CAPTION>
(Dollars in Thousands) December 31, 1997
-------------------------------------------------------
Fund Information
-------------------------------------------
Large Small International
Capitalization Capitalization Stock Company
Stock Equity Stock Equity Equity Stock Loan
Fund Fund Fund Fund Fund
------- ------- ------- ------- -------
Plan's Interest in Master Trust
Representing Total Assets
<S> <C> <C> <C> <C> <C>
Available for Plan Benefits $ 548 $ 835 $ 216 $10,771 $ 3,134
======= ======= ======= ======= =======
</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 Aggressive
Stable Asset Asset Asset Index
Value Allocation Allocation Allocation Stock Equity
Total Fund Fund Fund Fund Fund
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Increase in Assets:
Contributions:
Employer $ 644 $ - $ - $ - $ - $ -
Employee 2,104 1,152 12 51 31 661
-------- -------- -------- -------- -------- --------
2,748 1,152 12 51 31 661
Investment Income from Plan's
Interest in Master Trust 4,600 563 6 44 30 1,869
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries 1,963 1,168 - - 10 378
Administrative Expenses 19 11 - - - 8
-------- -------- -------- -------- -------- --------
1,982 1,179 - - 10 386
Transfers:
Transfers Between Plans (863) (401) (2) (53) (3) (129)
Transfers Between Funds - (1,173) (14) (8) (63) 2,724
Loan Transfers To or From Plan - 82 - 7 - 1
Loans to Participants - (660) (2) (9) (9) (538)
Loan Repayments:
Principal - 867 2 14 11 343
Interest - 174 1 3 3 87
-------- -------- -------- -------- -------- --------
(863) (1,111) (15) (46) (61) 2,488
-------- -------- -------- -------- -------- --------
Increase (Decrease) in Assets During the Year 4,503 (575) 3 49 (10) 4,632
Net Assets at Beginning of Year 33,756 11,771 61 262 167 6,395
-------- -------- -------- -------- -------- --------
Net Assets at End of Year $ 38,259 $ 11,196 $ 64 $ 311 $ 157 $ 11,027
======== ======== ======== ======== ======== ========
<CAPTION>
(Dollars in Thousands) For the Year Ended December 31, 1997
---------------------------------------------------------------------
Fund Information
---------------------------------------------------------------------
S&P 500 Large Small International
Capitalization Capitalization Stock Company
Stock Equity Stock Equity Equity Stock Loan
Fund Fund Fund Fund Fund
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Increase in Assets:
Contributions:
Employer $ - $ - $ - $ 644 $ -
Employee 61 97 39 -
-------- -------- -------- -------- --------
61 97 39 644 -
Investment Income from Plan's
Interest in Master Trust 110 35 5 1,674 264
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries (15) 10 (4) 416 -
Administrative Expenses - - - - -
-------- -------- -------- -------- --------
(15) 10 (4) 416 -
Transfers:
Transfers Between Plans (5) (2) (2) (266) -
Transfers Between Funds 26 (886) 56 (662) -
Loan Transfers To or From Plan (1) (1) - - (88)
Loans to Participants (67) (72) (7) - 1,364
Loan Repayments:
Principal 39 66 7 - (1,349)
Interest 9 14 1 - (292)
-------- -------- -------- -------- --------
1 (881) 55 (928) (365)
-------- -------- -------- -------- --------
Increase (Decrease) in Assets During the Year 187 (759) 103 974 (101)
Net Assets at Beginning of Year 361 1,594 113 9,797 3,235
-------- -------- -------- -------- --------
Net Assets at End of Year $ 548 $ 835 $ 216 $ 10,771 $ 3,134
======== ======== ======== ======== ========
</TABLE>
The accompanying notes are an integral part of these statements.
-4-
<PAGE> 9
THE GOODYEAR TIRE & RUBBER COMPANY
EMPLOYEE SAVINGS PLAN FOR HOURLY EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
- --------------------------------------------------------------------------------
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
BASIS OF ACCOUNTING
The accounts of The Goodyear Tire & Rubber Company Employee Savings Plan
for Hourly Employees (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 that participated in the master trust. The
Plan's undivided interest in the trust is presented in the accompanying
financial statements in accordance with the allocation made by the Trustee.
The Plan's undivided interest in the master trust was 1.9% at December 31,
1998 and 1997.
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
THE GOODYEAR TIRE & RUBBER COMPANY
EMPLOYEE SAVINGS PLAN FOR HOURLY EMPLOYEES
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.
2. GENERAL DESCRIPTION AND OPERATION OF THE PLAN:
INCEPTION
The Plan is a defined contribution plan which became effective July 1,
1984.
ELIGIBILITY
Certain hourly employees of the Company are eligible to participate in the
Plan after completing up to one year of continuous service depending upon
hire date. At the end of the 1998 Plan year, approximately 497 employees
(498 in 1997) of the Company were eligible with approximately 422 employees
(404 in 1997) participating in the Plan.
-6-
<PAGE> 11
THE GOODYEAR TIRE & RUBBER COMPANY
EMPLOYEE SAVINGS PLAN FOR HOURLY EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
- --------------------------------------------------------------------------------
VESTING
Employee contributions are fully vested. Employer matching contributions
become vested after the participant has completed four years of continuous
service with the Company.
CONTRIBUTIONS
Eligible employees may elect to contribute any whole percent from 1% to 16%
of earnings including wages, bonuses, commissions, overtime and vacation
pay into the Plan. Participating employees may elect to have their
contributions invested 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 calculates and deducts employee
contributions from gross earnings each pay period based on the percent
elected by the employee. Employees may change their contribution percent
any time up to the 15th day of the month for changes to be effective on the
1st day of the following month. Employees may transfer amounts attributable
to employee contributions from one fund to the other on a daily basis.
Eligible employees may enroll in the Plan effective on the 1st day of the
month by enrolling by the 15th day of the prior month. Employees may
suspend their contributions at any time effective immediately.
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.
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.
-7-
<PAGE> 12
THE GOODYEAR TIRE & RUBBER COMPANY
EMPLOYEE SAVINGS PLAN FOR HOURLY EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
- --------------------------------------------------------------------------------
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.
- 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.
-8-
<PAGE> 13
THE GOODYEAR TIRE & RUBBER COMPANY
EMPLOYEE SAVINGS PLAN FOR HOURLY EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
- --------------------------------------------------------------------------------
- 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.
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.
-9-
<PAGE> 14
THE GOODYEAR TIRE & RUBBER COMPANY
EMPLOYEE SAVINGS PLAN FOR HOURLY EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
-------------------------------------------------------------------------
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 are forfeited and applied to reduce future
contributions by the Company. During 1998 and 1997, the Plan had forfeiture
credits in the amounts of $524 and $2,806, 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 December 1998. The interest rate at the beginning of 1997 was 9.25%, but
was changed to 9.50% at the end of March 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.
-10-
<PAGE> 15
THE GOODYEAR TIRE & RUBBER COMPANY
EMPLOYEE SAVINGS PLAN FOR HOURLY EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
- --------------------------------------------------------------------------------
EXPENSES
Expenses of administering the Plan are 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 without interruption, but reserves the right
to discontinue the Plan. In the event of termination,
the obligation of the Company to make further
contributions ceases. All participants' accounts would
then be fully vested with respect to Company
contributions.
3. 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.
4. TAX STATUS OF PLAN:
The IRS advised on May 22, 1995 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 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
THE GOODYEAR TIRE & RUBBER COMPANY
EMPLOYEE SAVINGS PLAN FOR HOURLY EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
-------------------------------------------------------------------------
5. SUBSEQUENT EVENT
Effective January 1, 1999, the Plan was amended to allow employees to
participate in the Plan as of the first enrollment date after completing
three months of continuous service with the Company. The Plan was also
amended effective January 1, 1999 to permit employees, Plan participants,
or former Plan participants to transfer eligible cash distributions from
any other employer sponsored plan qualified under Section 401 of the
Internal Revenue Code into the Plan by a direct transfer from such other
plan.
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 Aggressive S&P 500
Stable Asset Asset Asset
Value Allocation Allocation Allocation
Total Fund Fund Fund Fund
---------- ---------- ---------- ---------- ----------
<S> <C> <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 - - - 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 26,314
---------- ---------- ---------- ---------- ----------
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 10
---------- ---------- ---------- ---------- ----------
994 453 2 27 10
---------- ---------- ---------- ---------- ----------
Total Assets 2,119,009 722,776 25,875 65,030 26,324
---------- ---------- ---------- ---------- ----------
Liabilities:
Administrative Expenses Payable 57 36 - - -
---------- ---------- ---------- ---------- ----------
Total Liabilities 57 36 - - -
---------- ---------- ---------- ---------- ----------
Net Assets $2,118,952 $ 722,740 $ 25,875 $ 65,030 $ 26,324
========== ========== ========== ========== ==========
<CAPTION>
(Dollars in Thousands) December 31, 1998
----------------------------------------------------------------------------------
Fund Information
---------------------------------------------------------------------------------
Large Small International
Index Capitalization Capitalization Stock Company
Stock Equity Stock Equity Stock Equity Equity Stock Loan
Fund Fund Fund Fund Fund Fund
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <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 - - - - - -
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 - - - - 10,635 -
Promissory Notes - - - - - 85,997
---------- ---------- ---------- ---------- ---------- ----------
595,064 83,563 56,414 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 47 20 4 2 81 7
---------- ---------- ---------- ---------- ---------- ----------
47 20 4 2 135 294
---------- ---------- ---------- ---------- ---------- ----------
Total Assets 595,111 83,583 56,418 21,878 435,723 86,291
---------- ---------- ---------- ---------- ---------- ----------
Liabilities:
Administrative Expenses Payable 19 - - - 2 -
---------- ---------- ---------- ---------- ---------- ----------
Total Liabilities 19 - - - 2 -
---------- ---------- ---------- ---------- ---------- ----------
Net Assets $ 595,092 $ 83,583 $ 56,418 $ 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 Aggressive S&P 500
Stable Asset Asset Asset Index
Value Allocation Allocation Allocation Stock Equity
Total Fund Fund Fund Fund Fund
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <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 - - - 18,931 -
Collective Daily Stock Index Fund, Cost
$306,918 - 19,116,281 Units 451,335 - - - - 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 18,931 451,335
---------- ---------- ---------- ---------- ---------- ----------
Investments at Contract Value:
Guaranteed Investment Contracts 656,767 656,767 - - - -
---------- ---------- ---------- ---------- ---------- ----------
Receivables:
Employee Contributions - - - - - -
Employer Contributions 12 - - - - -
Transfers - 723 128 5 (1) (1,081)
Accrued Interest and Dividends 1,886 1,160 3 11 4 535
---------- ---------- ---------- ---------- ---------- ----------
1,898 1,883 131 16 3 (546)
---------- ---------- ---------- ---------- ---------- ----------
Total Assets 1,965,579 670,960 16,594 53,143 18,934 450,789
---------- ---------- ---------- ---------- ---------- ----------
Liabilities:
Administrative Expenses Payable 113 72 - - - 41
---------- ---------- ---------- ---------- ---------- ----------
Total Liabilities 113 72 - - - 41
---------- ---------- ---------- ---------- ---------- ----------
Net Assets $1,965,466 $ 670,888 $ 16,594 $ 53,143 $ 18,934 $ 450,748
========== ========== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
(Dollars in Thousands) December 31, 1997
-------------------------------------------------------------------
Fund Information
-------------------------------------------------------------------
Large Small International
Capitalization Capitalization Stock Company
Stock Equity Stock Equity Equity Stock Loan
Fund Fund Fund Fund Fund
---------- ---------- ---------- ---------- ----------
<S> <C> <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 - - - - -
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 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 - - - 11,976 -
Promissory Notes - - - - 85,517
---------- ---------- ---------- ---------- ----------
42,456 62,657 25,608 538,510 85,517
---------- ---------- ---------- ---------- ----------
Investments at Contract Value:
Guaranteed Investment Contracts - - - - -
---------- ---------- ---------- ---------- ----------
Receivables:
Employee Contributions - - - - -
Employer Contributions - - - 12 -
Transfers 82 97 (260) (18) 325
Accrued Interest and Dividends 9 12 (6) 168 (10)
---------- ---------- ---------- ---------- ----------
91 109 (266) 162 315
---------- ---------- ---------- ---------- ----------
Total Assets 42,547 62,766 25,342 538,672 85,832
---------- ---------- ---------- ---------- ----------
Liabilities:
Administrative Expenses Payable - - - - -
---------- ---------- ---------- ---------- ----------
Total Liabilities - - - - -
---------- ---------- ---------- ---------- ----------
Net Assets $ 42,547 $ 62,766 $ 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 Aggressive S&P 500
Stable Asset Asset Asset Index
Value Allocation Allocation Allocation Stock Equity
Total Fund Fund Fund Fund Fund
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Increase in Assets:
Contributions:
Employer $ 41,179 $ 296 $ - $ - $ - $ -
Employee 127,675 57,837 1,690 6,746 3,310 42,779
---------- ---------- ---------- ---------- ---------- ----------
168,854 58,133 1,690 6,746 3,310 42,779
Interest and Dividend Income 63,486 43,675 2 27 10 47
Net Appreciation (Depreciation)
in Fair Market Value of Assets 50,525 - 2,837 9,261 3,949 129,561
---------- ---------- ---------- ---------- ---------- ----------
114,011 43,675 2,839 9,288 3,959 129,608
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries 127,891 67,110 1,104 3,146 1,056 24,280
Administrative Expenses 1,488 911 - - - 577
---------- ---------- ---------- ---------- ---------- ----------
129,379 68,021 1,104 3,146 1,056 24,857
Transfers:
Transfers Between Plans - - - - - -
Transfers Between Funds - 12,142 5,859 (1,010) 1,036 (3,564)
Loan Transfers To or From Plan - - - - - -
Loans to Participants - (22,562) (470) (1,479) (759) (15,509)
Loan Repayments:
Principal - 24,264 406 1,272 775 13,463
Interest - 4,221 61 216 125 2,424
---------- ---------- ---------- ---------- ---------- ----------
- 18,065 5,856 (1,001) 1,177 (3,186)
---------- ---------- ---------- ---------- ---------- ----------
Increase (Decrease) in Assets During Year 153,486 51,852 9,281 11,887 7,390 144,344
Net Assets at Beginning of Year 1,965,466 670,888 16,594 53,143 18,934 450,748
---------- ---------- ---------- ---------- ---------- ----------
Net Assets at End of Year $2,118,952 $ 722,740 $ 25,875 $ 65,030 $ 26,324 $ 595,092
========== ========== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
(Dollars in Thousands) For the Year Ended December 31, 1998
--------------------------------------------------------------------
Fund Information
--------------------------------------------------------------------
Large Small International
Capitalization Capitalization Stock Company
Stock Equity Stock Equity Equity Stock Loan
Fund Fund Fund Fund Fund
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Increase in Assets:
Contributions:
Employer $ - $ - $ - $ 40,883 $ -
Employee 6,224 6,212 2,877 - -
---------- ---------- ---------- ---------- ----------
6,224 6,212 2,877 40,883 -
Interest and Dividend Income 20 803 614 10,594 7,694
Net Appreciation (Depreciation)
in Fair Market Value of Assets 16,582 (476) (2,001) (109,188) -
---------- ---------- ---------- ---------- ----------
16,602 327 (1,387) (98,594) 7,694
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries 1,868 2,044 1,083 26,200 -
Administrative Expenses - - - - -
---------- ---------- ---------- ---------- ----------
1,868 2,044 1,083 26,200 -
Transfers:
Transfers Between Plans - - - - -
Transfers Between Funds 19,945 (11,347) (4,021) (19,040) -
Loan Transfers To or From Plan - - - - -
Loans to Participants (1,864) (1,260) (512) - 44,415
Loan Repayments:
Principal 1,699 1,509 570 - (43,958)
Interest 298 255 92 - (7,692)
---------- ---------- ---------- ---------- ----------
20,078 (10,843) (3,871) (19,040) (7,235)
---------- ---------- ---------- ---------- ----------
Increase (Decrease) in Assets During Year 41,036 (6,348) (3,464) (102,951) 459
Net Assets at Beginning of Year 42,547 62,766 25,342 538,672 85,832
---------- ---------- ---------- ---------- ----------
Net Assets at End of Year $ 83,583 $ 56,418 $ 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 Aggressive S&P 500
Stable Asset Asset Asset Index
Value Allocation Allocation Allocation Stock Equity
Total Fund Fund Fund Fund Fund
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Increase in Assets:
Contributions:
Employer $ 38,672 $ 350 $ - $ - $ - $ -
Employee 117,000 61,243 1,027 5,376 2,270 34,307
----------- ----------- ----------- ----------- ----------- -----------
155,672 61,593 1,027 5,376 2,270 34,307
Interest and Dividend Income 71,550 42,776 (9) (47) (17) 13
Net Appreciation (Depreciation)
in Fair Market Value of Assets 217,853 - 1,776 8,390 2,641 101,723
----------- ----------- ----------- ----------- ----------- -----------
289,403 42,776 1,767 8,343 2,624 101,736
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries 104,377 55,553 624 2,118 702 16,633
Administrative Expenses 595 410 - - - 173
----------- ----------- ----------- ----------- ----------- -----------
104,972 55,963 624 2,118 702 16,806
Transfers:
Transfers Between Plans - - - - - -
Transfers Between Funds - (48,549) 6,977 6,446 1,813 42,872
Loan Transfers To or From Plan - - - - - -
Loans to Participants - (25,459) (212) (1,264) (491) (13,612)
Loan Repayments:
Principal - 24,568 244 1,114 574 10,384
Interest - 4,524 43 188 100 1,967
----------- ----------- ----------- ----------- ----------- -----------
- (44,916) 7,052 6,484 1,996 41,611
----------- ----------- ----------- ----------- ----------- -----------
Increase in Assets During Year 340,103 3,490 9,222 18,085 6,188 160,848
Net Assets at Beginning of Year 1,625,363 667,398 7,372 35,058 12,746 289,900
----------- ----------- ----------- ----------- ----------- -----------
Net Assets at End of Year $ 1,965,466 $ 670,888 $ 16,594 $ 53,143 $ 18,934 $ 450,748
=========== =========== =========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
(Dollars in Thousands) For the Year Ended December 31, 1997
--------------------------------------------------------------------------
Fund Information
--------------------------------------------------------------------------
Large Small International
Capitalization Capitalization Stock Company
Stock Equity Stock Equity Equity Stock Loan
Fund Fund Fund Fund Fund
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Increase in Assets:
Contributions:
Employer $ - $ - $ - $ 38,322 $ -
Employee 4,097 5,915 2,765 - -
----------- ----------- ----------- ----------- -----------
4,097 5,915 2,765 38,322 -
Interest and Dividend Income 8,601 2,641 762 9,577 7,253
Net Appreciation (Depreciation)
in Fair Market Value of Assets (2,607) 3,719 531 101,680 -
----------- ----------- ----------- ----------- -----------
5,994 6,360 1,293 111,257 7,253
Decrease in Assets:
Benefits Paid to Participants
or Their Beneficiaries 803 1,686 568 25,690 -
Administrative Expenses - - - 12 -
----------- ----------- ----------- ----------- -----------
803 1,686 568 25,702 -
Transfers:
Transfers Between Plans - - - - -
Transfers Between Funds 7,741 6,469 4,792 (28,561) -
Loan Transfers To or From Plan - - - - -
Loans to Participants (1,256) (1,666) (565) - 44,525
Loan Repayments:
Principal 972 1,391 501 - (39,748)
Interest 192 269 89 - (7,372)
----------- ----------- ----------- ----------- -----------
7,649 6,463 4,817 (28,561) (2,595)
----------- ----------- ----------- ----------- -----------
Increase in Assets During Year 16,937 17,052 8,307 95,316 4,658
Net Assets at Beginning of Year 25,610 45,714 17,035 443,356 81,174
----------- ----------- ----------- ----------- -----------
Net Assets at End of Year $ 42,547 $ 62,766 $ 25,342 $ 538,672 $ 85,832
=========== =========== =========== =========== ===========
</TABLE>
-16-
<PAGE> 1
EXHIBIT 4
FIRST AMENDMENT
TO
THE GOODYEAR TIRE & RUBBER COMPANY
EMPLOYEE SAVINGS PLAN FOR HOURLY EMPLOYEES
(January 1, 1997 Restatement)
The Goodyear Tire & Rubber Company Savings Plan for Hourly Employees
(the "Plan"), originally established effective as of July 1, 1984, and amended
and restated most recently as of January 1, 1997, is hereby further amended,
effective as of January 1, 1999, in the respects hereinafter set forth:
1. A new sentence is added at the end of Section 2.1(u) to provide as
follows:
A Participant shall also mean, except for purposes of Section
3.1, Section 4.1, and Section 5.1, an Employee who elects to
make a rollover contribution to the Plan in accordance with
the provisions of Section 5.5.
2. The second sentence of Section 3.1 of the Plan is amended to provide
as follows:
Each other Employee shall become a Participant as of the
Enrollment Date next following the date on which he completes
three months of Continuous Service, or any subsequent
Enrollment Date, if he has timely filed with the Company an
election in the manner and form as prescribed by the Company.
3. Article V of the Plan is renamed "After-Tax Contributions and
Rollover Contributions," and a new Section 5.5 is added to the Plan
to provide as follows:
5.5 Rollover Contributions.
-----------------------
Any Employee, regardless of whether he has satisfied
the eligibility requirements of Section 3.1,
Participant, or Former Participant who was a
participant in another plan qualified under Section
401 of the Code and who receives an eligible rollover
distribution within the meaning of Section 402(c)(4)
of the Code from such plan may elect to make a
rollover contribution to the Plan. An Employee,
Participant, or Former Participant shall make a
rollover contribution to the Plan either by a direct
<PAGE> 2
rollover pursuant to Section 401(a)(31) of the Code,
or by delivering, or causing to be delivered, to the
Trustee the cash that constitutes the rollover
contribution amount within (60) days of receipt of
the distribution from such other plan, in either case
in the manner prescribed by the Company. A separate
sub-account shall be established pursuant to Section
8.7 for the rollover contribution, and the rollover
contribution shall be invested pursuant to the
investment election of the Employee, Participant, or
Former Participant in effect under Section 7.2 with
respect to the investment of Tax-Deferred
Contributions and After-Tax Contributions. An
Employee, Participant, or Former Participant who
makes a rollover contribution to the Plan who does
not already have an investment election in place
under Section 7.2 shall also make such an investment
election. An Employee's, Participant's, or Former
Participant's interest in his sub-account for
rollover contributions shall be fully vested at all
times.
4. The last sentence of Section 12.3 of the Plan is amended to provide
as follows:
Notwithstanding the foregoing, if the balance carried
in the separate account of a Former Participant is or
ever was in excess of $5,000 and the Former
Participant has not attained age 65, no distribution
shall be made to such Former Participant without his
written consent.
EXECUTED at Akron, Ohio, this 22nd day of December, 1998.
THE GOODYEAR TIRE & RUBBER COMPANY
By: /s/ James Boyazis
--------------------------------
Vice President
Attest:
/s/ P.A. Kemph
- -------------------------------------
Assistant Secretary
<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. 33-65181) 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
