<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,
OR
TRANSITIONAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to _____.
Commission file number 1-313
THE LAMSON & SESSIONS CO. DEFERRED SAVINGS PLAN
-----------------------------------------------
(Full title of the Plan)
THE LAMSON & SESSIONS CO.
-------------------------
25701 Science Park Drive, Cleveland, Ohio 44122
-----------------------------------------------
(Name of issuer of the securities held pursuant to the Plan
and the address of its principal executive office)
<PAGE> 2
THE LAMSON & SESSIONS CO. DEFERRED SAVINGS PLAN
FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
TABLE OF CONTENTS
INDEPENDENT AUDITORS' REPORT 3
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS - MODIFIED CASH BASIS 5
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS -
MODIFIED CASH BASIS 7
NOTES TO FINANCIAL STATEMENTS 10
ITEM 27(a) - SCHEDULE OF ASSETS HELD FOR INVESTMENT
PURPOSES 20
ITEM 27(d) - SCHEDULE OF REPORTABLE TRANSACTIONS 21
EXHIBIT 23 - CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS 24
2
<PAGE> 3
THE LAMSON & SESSIONS CO. DEFERRED SAVINGS PLAN
Financial Statements
December 31, 1998 and 1997
INDEPENDENT AUDITORS' REPORT
June 15, 1999
To the Board of Directors
The Lamson & Sessions Co.
We have audited the accompanying statements of net assets available for benefits
- -modified cash basis of The Lamson & Sessions Co. Deferred Savings Plan as of
December 31, 1998 and 1997, and the related statements of changes in net assets
available for benefits - modified cash basis for the years then ended, and the
supplemental schedules as of and for the year ended December 31, 1998. These
financial statements and schedules are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
Except as discussed in the following paragraph, we conducted our audits in
accordance with generally accepted auditing standards. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements and schedules are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
As permitted by 29 CFR 2520.103-8 of the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974, investment assets held by Nationwide Financial Services,
the custodian of the Plan, and transactions in those assets were excluded from
the scope of our audit of the Plan's 1997 financial statements, except for
comparing the information provided by the custodian, which is summarized in Note
3, with the related information included in the financial statements.
Because of the significance of the information that we did not audit, we are
unable to, and do not, express an opinion on the Plan's financial statements and
schedules as of December 31, 1997. The form and content of the information
included in the 1997 financial statements, other than that derived from the
information certified by the custodian, have been audited by us and, in our
opinion, are presented in compliance with the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974.
In our opinion, the financial statements and schedules, referred to above, of
The Lamson & Sessions Co. Deferred Savings Plan as of December 31, 1998, and for
the year then ended present fairly, in all material respects, the net assets
available for benefits of The Lamson & Sessions Co. Deferred Savings Plan as of
December 31, 1998, and changes in its net assets available for benefits for the
year then ended in conformity with the modified cash basis of accounting.
As described in Note 2, these financial statements were prepared on the modified
cash basis of accounting, which is a comprehensive basis of accounting other
than generally accepted accounting principles.
3
<PAGE> 4
Our audit of the Plan's financial statements and schedules as of and for the
year ended December 31, 1998, was conducted for the purpose of forming an
opinion on the financial statements taken as a whole. The supplemental schedules
of (1) assets held for investment purposes, (2) reportable transactions as of
and for the year ended December 31, 1998 are presented for the purpose of
additional analysis and are not a required part of the basic financial
statements but are supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. These supplemental schedules are the
responsibility of the Plan's management. The supplemental schedules have been
subjected to the auditing procedures applied in the audit of the basic financial
statements for the year ended December 31, 1998, and, in our opinion, are fairly
stated in all material respects in relation to the basic financial statements
taken as a whole.
The schedule of reportable transactions that accompanies the Plan's financial
statements does not disclose the historical cost of certain Plan assets sold
during the year by the Plan custodian, Nationwide Financial Services. Disclosure
of this information is required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974.
By:/s/ Moore Stephens Apple
-----------------------------
Certified Public Accountants
4
<PAGE> 5
<TABLE>
<CAPTION>
THE LAMSON & SESSIONS CO. DEFERRED SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS - MODIFIED CASH BASIS DECEMBER 31, 1998 (FORM 5500 - ITEM 31)
- ------------------------------------------------------------------------------------------------------------------------------------
PARTICIPANT DIRECTED
----------------------------------------------------------------------------------------------------------
FRANKLIN
TEMPLETON TEMPLETON BALANCE
FOREIGN EUROPACIFIC DEVELOPING SHEET
BOND FUND SMALLER GROWTH STABLE MARKETS FUNDAMENTAL INVESTMENT
OF AMERICA COMPANIES FUND VALUE FUND FUND INVESTORS FUND
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
INVESTMENTS,
AT FAIR VALUE:
Mutual Funds $ 2,114,508 $ 430,945 $ 1,210,783 $ 3,844,575 $ 385,757 $ 4,936,964 $ 2,011,256
Money Market Funds -- -- -- -- -- -- --
Cash value of life insurance -- -- -- -- -- -- --
Lamson & Sessions Co. stock -- -- -- -- -- -- --
Participant loans receivable -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 2,114,508 $ 430,945 $ 1,210,783 $ 3,844,575 $ 385,757 $ 4,936,964 $ 2,011,256
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Distributions Payable $ -- $ -- $ -- $ -- $ -- $ -- $ --
====================================================================================================================================
NET ASSETS AVAILABLE
FOR BENEFITS $ 2,114,508 $ 430,945 $ 1,210,783 $ 3,844,575 $ 385,757 $ 4,936,964 $ 2,011,256
====================================================================================================================================
<CAPTION>
PARTICIPANT DIRECTED
---------------------------------------------------------------------------------------------------------
MFS LAMSON
MASSACHU- LORD &
FRANKLIN SETTS ABBETT MONEY SESSIONS
REAL ESTATE INVESTORS DEVELOPING MARKET STOCK
SECURITIES TRUST GROWTH A FUNDS INSURANCE FUND
<S> <C> <C> <C> <C> <C> <C>
ASSETS
INVESTMENTS,
AT FAIR VALUE:
Mutual Funds $ 1,241,302 $ 5,505,575 $ 1,574,369 $ -- $ -- $ --
Money Market Funds -- -- -- 125,782 -- --
Cash value of life insurance -- -- -- -- 97,128 --
Lamson & Sessions Co. stock -- -- -- -- -- 176,353
Participant loans receivable -- -- -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 1,241,302 $ 5,505,575 $ 1,574,369 $ 125,782 $ 97,128 $ 176,353
- --------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Distributions Payable $ -- $ -- $ -- $ (4,773) $ -- $ --
================================================================================================================================
NET ASSETS AVAILABLE
FOR BENEFITS $ 1,241,302 $ 5,505,575 $ 1,574,369 $ 121,009 $ 97,128 $ 176,353
================================================================================================================================
<CAPTION>
PARTICIPANT DIRECTED
-----------------------------------------------------
PARTICIPANT
LOANS TOTAL
<S> <C> <C>
ASSETS
INVESTMENTS,
AT FAIR VALUE:
Mutual Funds $ -- $ 23,256,034
Money Market Funds -- 125,782
Cash value of life insurance -- 97,128
Lamson & Sessions Co. stock -- 176,353
Participant loans receivable 385,937 385,937
- -------------------------------------------------------------------
TOTAL ASSETS $ 385,937 $ 24,041,234
- -------------------------------------------------------------------
LIABILITIES
Distributions Payable $ -- $ (4,773)
===================================================================
NET ASSETS AVAILABLE
FOR BENEFITS $ 385,937 $ 24,036,461
===================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE> 6
<TABLE>
<CAPTION>
THE LAMSON & SESSIONS CO. DEFERRED SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS - MODIFIED CASH BASIS DECEMBER 31, 1997 (FORM 5500 - ITEM 31)
- ------------------------------------------------------------------------------------------------------------------------------------
PARTICIPANT DIRECTED
----------------------------------------------------------------------------------------
BOND FUND FUNDAMENTAL FIDELITY FIDELITY FIDELITY MONEY
OF AMERICA INVESTORS MAGELLAN OVERSEAS PURITAN MARKET
<S> <C> <C> <C> <C> <C> <C>
ASSETS
INVESTMENTS, AT FAIR VALUE:
Mutual Funds $ 1,178,028 $ 2,835,136 $ 4,618,992 $ 1,094,539 $ 3,019,541 $ 330,416
Cash - - - - - -
Cash value of life insurance - - - - - -
Participant loans receivable - - - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 1,178,028 $ 2,835,136 $ 4,618,992 $ 1,094,539 $ 3,019,541 $ 330,416
- ------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
NET ASSETS AVAILABLE
FOR BENEFITS $ 1,178,028 $ 2,835,136 $ 4,618,992 $ 1,094,539 $ 3,019,541 $ 330,416
====================================================================================================================================
<CAPTION>
PARTICIPANT DIRECTED
----------------------------------------------------------------------------------------
AMERICAN
20TH
CENTURY GUARANTEED RETAINER PARTICIPANT
ULTRA FUND ACCOUNT INSURANCE LOANS TOTAL
<S> <C> <C> <C> <C> <C> <C>
ASSETS
INVESTMENTS, AT FAIR VALUE:
Mutual Funds $ 3,623,391 $ 4,228,921 $ - $ - $ - $ 20,928,964
Cash - - 471,859 - - 471,859
Cash value of life insurance - - - 82,465 - 82,465
Participant loans receivable - - - - 294,651 294,651
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 3,623,391 $ 4,228,921 $ 471,859 $ 82,465 $ 294,651 $ 21,777,939
- -----------------------------------------------------------------------------------------------------------------------------------
===================================================================================================================================
NET ASSETS AVAILABLE
FOR BENEFITS $ 3,623,391 $ 4,228,921 $ 471,859 $ 82,465 $ 294,651 $ 21,777,939
===================================================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE> 7
<TABLE>
<CAPTION>
THE LAMSON & SESSIONS CO. DEFERRED SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS - MODIFIED CASH BASIS YEAR ENDED DECEMBER 31, 1998 (FORM 5500 - ITEM 32)
- ------------------------------------------------------------------------------------------------------------------------------------
PARTICIPANT DIRECTED
---------------------------------------------------------------------------
MONEY LAMSON &
MUTUAL FUNDS - RETAINER MUTUAL FUNDS - MARKET SESSIONS
NATIONWIDE ACCOUNT PERSHING FUNDS INSURANCE STOCK FUND
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS ATTRIBUTABLE TO:
Investment income
Net appreciation (depreciation) in fair
value of investments $ 2,201,721 $ -- $ (3,780) $ -- $ 14,663 $ (59,605)
Interest -- 5,618 -- 56,551 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
$ 2,201,721 $ 5,618 $ (3,780) $ 56,551 $ 14,663 $ (59,605)
- ------------------------------------------------------------------------------------------------------------------------------------
Contributions
Employee salary deferrals $ 378,987 $ -- $ 1,663,679 $ -- $ -- $ 10,491
Employer matching 163,603 -- 573,132 -- -- 4,130
Rollover contributions -- -- 10,645 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
$ 542,590 $ -- $ 2,247,456 $ -- $ -- $ 14,621
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ADDITIONS $ 2,744,311 $ 5,618 $ 2,243,676 $ 56,551 $ 14,663 $ (44,984)
- ------------------------------------------------------------------------------------------------------------------------------------
DEDUCTIONS FROM NET ASSETS ATTRIBUTABLE TO:
Benefits paid to participants $ (219,550) $ -- $ (2,504,853) $ -- $ -- $ (4,148)
Insurance premiums (2,397) -- (7,989) -- -- --
TOTAL DEDUCTIONS $ (221,947) $ -- $ (2,512,842) $ -- $ -- $ (4,148)
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Election Transfers - In/(Out) (23,451,328) (477,477) 23,525,200 64,458 -- 225,485
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) $(20,928,964) $ (471,859) $ 23,256,034 $ 121,009 $ 14,663 $ 176,353
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year $ 20,928,964 $ 471,859 $ -- $ -- $ 82,465 $ --
====================================================================================================================================
END OF YEAR $ -- $ -- $ 23,256,034 $ 121,009 $ 97,128 $ 176,353
====================================================================================================================================
<CAPTION>
PARTICIPANT DIRECTED
----------------------------------
PARTICIPANT
LOANS TOTAL
<S> <C> <C>
ADDITIONS TO NET ASSETS ATTRIBUTABLE TO:
Investment income
Net appreciation (depreciation) in fair
value of investments $ -- $ 2,152,999
Interest 27,241 89,410
- -----------------------------------------------------------------------------
$ 27,241 $ 2,242,409
- -----------------------------------------------------------------------------
Contributions
Employee salary deferrals $ -- $ 2,053,157
Employer matching -- 740,865
Rollover contributions -- 10,645
- -----------------------------------------------------------------------------
$ -- $ 2,804,667
- -----------------------------------------------------------------------------
TOTAL ADDITIONS $ 27,241 $ 5,047,076
- -----------------------------------------------------------------------------
DEDUCTIONS FROM NET ASSETS ATTRIBUTABLE TO:
Benefits paid to participants $ (49,617) $ (2,778,168)
Insurance premiums -- (10,386)
- -----------------------------------------------------------------------------
TOTAL DEDUCTIONS $ (49,617) $ (2,788,554)
- -----------------------------------------------------------------------------
Investment Election Transfers - In/(Out) 113,662 --
- -----------------------------------------------------------------------------
Net Increase (Decrease) $ 91,286 $ 2,258,522
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year $ 294,651 $ 21,777,939
=============================================================================
END OF YEAR $ 385,937 $ 24,036,461
=============================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE> 8
<TABLE>
<CAPTION>
THE LAMSON & SESSIONS CO. DEFERRED SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS - MODIFIED CASH BASIS YEAR ENDED DECEMBER 31, 1997 (FORM 5500 - ITEM 32)
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
PARTICIPANT DIRECTED
-------------------------------------------------------------------------------------
BOND FUND FUNDAMENTAL FIDELITY FIDELITY FIDELITY
OF AMERICA INVESTORS MAGELLAN OVERSEAS PURITAN
<S> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS ATTRIBUTABLE TO:
Investment income
Net appreciation (depreciation)
in fair value of investments $ 98,633 $ 529,251 $ 958,636 $ 98,871 $ 521,482
Interest -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
$ 98,633 $ 529,251 $ 958,636 $ 98,871 $ 521,482
- ------------------------------------------------------------------------------------------------------------------------------
Contributions
Employee salary deferrals $ 123,846 $ 252,076 $ 380,726 $ 122,985 $ 275,597
Employer matching 51,677 93,372 146,742 50,555 100,801
- ------------------------------------------------------------------------------------------------------------------------------
$ 175,523 $ 345,448 $ 527,468 $ 173,540 $ 376,398
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL ADDITIONS $ 274,156 $ 874,699 $ 1,486,104 $ 272,411 $ 897,880
- ------------------------------------------------------------------------------------------------------------------------------
DEDUCTIONS FROM NET ASSETS ATTRIBUTABLE TO:
Benefits paid to participants $ (246,918) $ (252,171) $ (751,857) $ (200,687) $ (367,546)
Insurance premiums (987) (2,494) (1,728) (522) (1,603)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DEDUCTIONS $ (247,905) $ (254,665) $ (753,585) $ (201,209) $ (369,149)
- ------------------------------------------------------------------------------------------------------------------------------
Investment Election Transfers - In/(Out) 36,575 422,944 213,276 168,542 265,853
- ------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) $ 62,826 $ 1,042,978 $ 945,795 $ 239,744 $ 794,584
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year $ 1,115,202 $ 1,792,158 $ 3,673,197 $ 854,795 $ 2,224,957
==============================================================================================================================
END OF YEAR $ 1,178,028 $ 2,835,136 $ 4,618,992 $ 1,094,539 $ 3,019,541
==============================================================================================================================
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
PARTICIPANT DIRECTED
-------------------------------------------------------------------------------------
AMERICAN
20TH
MONEY NEW ENGLAND CENTURY GUARANTEED RETAINER
MARKET GIC ULTRA FUND ACCOUNT
<S> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS ATTRIBUTABLE TO:
Investment income
Net appreciation (depreciation)
in fair value of investments $ 13,371 $ 19,866 $ 661,000 $ 249,208 $ 2,893
Interest -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
$ 13,371 $ 19,866 $ 661,000 $ 249,208 $ 2,893
- -----------------------------------------------------------------------------------------------------------------------------
Contributions
Employee salary deferrals $ -- $ -- $ 384,078 $ 468,701 $ --
Employer matching -- -- 179,437 174,730 --
- -----------------------------------------------------------------------------------------------------------------------------
$ -- $ -- $ 563,515 $ 643,431 $ --
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL ADDITIONS $ 13,371 $ 19,866 $ 1,224,515 $ 892,639 $ 2,893
- -----------------------------------------------------------------------------------------------------------------------------
DEDUCTIONS FROM NET ASSETS ATTRIBUTABLE TO:
Benefits paid to participants $ (230,482) $ -- $ (627,332) $ (659,120) $ --
Insurance premiums -- -- (1,011) (1,242) --
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL DEDUCTIONS $ (230,482) $ -- $ (628,343) $ (660,362) $ --
- -----------------------------------------------------------------------------------------------------------------------------
Investment Election Transfers - In/(Out) 277,467 (663,495) 244,345 351,728 (1,078,737)
- -----------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) $ 60,356 $ (643,629) $ 840,517 $ 584,005 $ (1,075,844)
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year $ 270,060 $ 643,629 $ 2,782,874 $ 3,644,916 $ 1,547,703
=============================================================================================================================
END OF YEAR $ 330,416 $ -- $ 3,623,391 $ 4,228,921 $ 471,859
=============================================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE> 9
<TABLE>
<CAPTION>
THE LAMSON & SESSIONS CO. DEFERRED SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS - MODIFIED CASH BASIS YEAR ENDED DECEMBER 31, 1997 (FORM 5500 - ITEM 32)
====================================================================================================================================
PARTICIPANT DIRECTED
-------------------------------------------------------------------------------------
PARTICIPANT
INSURANCE LOANS TOTAL
<S> <C> <C> <C>
ADDITIONS TO NET ASSETS ATTRIBUTABLE TO:
Investment income
Net appreciation (depreciation)
in fair value of investments $ 9,915 $ -- $ 3,163,126
Interest -- 27,390 27,390
- ---------------------------------------------------------------------------------------------
$ 9,915 $ 27,390 $ 3,190,516
- ---------------------------------------------------------------------------------------------
Contributions
Employee salary deferrals $ -- $ -- $ 2,008,009
Employer matching -- -- 797,314
- ---------------------------------------------------------------------------------------------
$ -- $ -- $ 2,805,323
- ---------------------------------------------------------------------------------------------
TOTAL ADDITIONS $ 9,915 $ 27,390 $ 5,995,839
- ---------------------------------------------------------------------------------------------
DEDUCTIONS FROM NET ASSETS ATTRIBUTABLE TO:
Benefits paid to participants $ (57,193) $ (4,353) $ (3,397,659)
Insurance premiums -- -- (9,587)
- ---------------------------------------------------------------------------------------------
TOTAL DEDUCTIONS $ (57,193) $ (4,353) $ (3,407,246)
- ---------------------------------------------------------------------------------------------
Investment Election Transfers - In/(Out) -- (33,329) 205,169
- ---------------------------------------------------------------------------------------------
Net Increase (Decrease) $ (47,278) $ (10,292) $ 2,793,762
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year $ 129,743 $ 304,943 $ 18,984,177
=============================================================================================
END OF YEAR $ 82,465 $ 294,651 $ 21,777,939
=============================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
9
<PAGE> 10
THE LAMSON & SESSIONS CO. DEFERRED SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
================================================================================
December 31, 1998 and 1997
NOTE 1 - DESCRIPTION OF PLAN
The following description of the The Lamson & Sessions Co. (the Company)
Deferred Savings Plan (the Plan) provides only general information.
Participants should refer to the Plan agreement for a more complete
description of the Plan's provisions.
GENERAL
The Plan is a defined contribution plan covering substantially all
employees of the Company. Employees are eligible to participate in the Plan
on the first day of the calendar quarter after which they have attained the
age of 21 and completed one-half (1/2) year of service. The Plan is subject
to the provisions of the Employee Retirement Income Security Act of 1974
(ERISA). The Company is the Plan's administrator. The Plan's custodian is
the Pershing Division of Donaldson, Lufkin & Jenrette Securities
Corporation (Pershing). Pershing was appointed custodian on April 9, 1998.
The previous custodian was the Nationwide Life Insurance Company.
CONTRIBUTIONS
Each year, participants contribute from 1% to 15% of their eligible
compensation (pre-tax contributions), as defined in the Plan. The Company
contributes 50% of the first 6% of base compensation that a participant
contributes to the Plan. Additional amounts may be contributed at the
discretion of the Company.
PARTICIPANT ACCOUNTS
Each participant's account is credited with the participant's elective
contributions, allocations of the Company's contributions and earnings on
those contributions. Forfeitures due to the distribution of a participant's
account before the participant has become fully vested reduce subsequent
company contributions. The benefit to which a participant is entitled is
the benefit that can be provided from the participant's vested account.
10
<PAGE> 11
THE LAMSON & SESSIONS CO. DEFERRED SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
================================================================================
NOTE 1 - DESCRIPTION OF PLAN (CONTINUED)
Participants may direct their individual account balances as of December
31, 1998 among the following mutual funds:
Bond Fund of America - This fund seeks a high level of current income
consistent with preservation of capital investing primarily in high
quality corporate bonds and U.S. government securities.
Templeton Foreign Smaller Companies Fund - A foreign stock fund that
seeks long-term capital growth.
EuroPacific Growth Fund - A foreign stock fund that seeks long-term
capital appreciation by investing in companies located outside the
United States.
Stable Value Fund - This fund seeks to produce consistent, positive
returns for investors while preserving principal and maintaining
liquidity.
Templeton Developing Markets Fund - An emerging market stock fund that
seeks long-term capital appreciation by investing in stocks of issuers
in countries with developing markets.
Fundamental Investors Fund - A large company value fund that invests
primarily in large company stocks or investments that are convertible
to stock. It seeks both long-term growth of capital and current
income.
Franklin Balance Sheet Investment Fund - A small company value fund
that seeks capital appreciation primarily through investment in
securities that the fund's manager believes are undervalued in the
marketplace.
Franklin Real Estate Securities - A specialty real estate fund that
seeks to maximize total return by investing in real estate securities.
MFS Massachusetts Investors Trust - A large company growth fund that
seeks current income and long-term growth of capital.
Lord Abbett Developing Growth A Fund - A small company growth fund
that seeks long-term capital growth by investing in stocks of
companies with dramatic growth potential.
Lamson & Sessions Stock Fund - Funds are invested in common stock of
The Lamson & Sessions Co. The Fund's objective is to provide
investment returns linked to Lamson & Session's long-term capital
appreciation and offer employees a convenient way to invest in Lamson
& Session's stock.
11
<PAGE> 12
THE LAMSON & SESSIONS CO. DEFERRED SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
================================================================================
NOTE 1 - DESCRIPTION OF PLAN (CONTINUED)
In addition, subject to the terms of the Plan, participants with sufficient
vested balances may borrow from their fund accounts. Participant loans are
an additional investment option under the terms of the Plan.
Prior to January 1, 1998, the Plan also offered participants the option to
invest in life insurance. Participants with portions of their accounts
invested in life insurance at January 1, 1998 have the option of keeping
the insurance in place, but additional investments in insurance are no
longer permitted.
VESTING
Participants are immediately vested in their contributions plus actual
earnings thereon. Vesting in the Company's matching and discretionary
contribution portions of their accounts plus actual earnings thereon is
based on years of continuous service. A participant is fully vested after
five years.
PARTICIPANT LOANS RECEIVABLE
Participants may borrow from their fund accounts a minimum of $1,000 and a
maximum equal to the lesser of $50,000 or 50 percent of their vested
balance in all their accounts reduced by their highest outstanding loan
balance within the twelve (12) preceding months. Loan transactions are
treated as transfers to (from) the investment fund from (to) the
Participant Notes fund. A loan must be repaid through payroll withholding,
the repayments must be periodic, and the term must not exceed five (5)
years. The loans are secured by the balance in the participant's account
and bear interest at a rate commensurate with local prevailing rates as
determined by the trustees on the date the loan is made. Interest rates
currently charged on outstanding balances range from 7.25 percent to 11.58
percent.
PAYMENT OF BENEFITS
Benefits upon retirement, death or other termination of employment may be
paid either in a lump sum or in periodic payments. Withdrawals from a
participant's account may be made prior to termination, subject to certain
restrictions.
PLAN EXPENSES
The Lamson & Sessions Co. absorbs all costs to administer the Plan.
FORFEITURES
Forfeited nonvested accounts are used to reduce employer contributions. In
1998 and 1997, the amount of forfeited nonvested accounts which were
applied to reduce such contributions were $52,069 and $26,290,
respectively.
12
<PAGE> 13
THE LAMSON & SESSIONS CO. DEFERRED SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
================================================================================
NOTE 2 - SUMMARY OF ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The financial statements of the Plan are prepared under the modified cash
basis of accounting.
INVESTMENT VALUATION AND INCOME RECOGNITION
The Plan's investments are stated at fair value. Shares of registered
investment companies are valued at quoted market prices which represent the
net asset value of shares held by the Plan at year-end. The Company stock
is valued at its quoted market price. Participant loans receivable are
valued at cost which approximates fair value. Life insurance contracts are
valued at cash value.
Purchases and sales of securities are recorded on a trade-date basis.
Interest and dividend income is recorded when received.
PAYMENT OF BENEFITS
Benefits are recorded when paid.
USE OF ESTIMATES
The preparation of financial statements, in conformity with the modified
cash basis of accounting, requires the Plan administrator to make estimates
and assumptions that affect certain reported amounts and disclosures.
Actual results could differ from those estimates.
RECLASSIFICATIONS
Certain reclassifications were made to 1997 financial statements in order
to comply with our 1998 presentation.
13
<PAGE> 14
THE LAMSON & SESSIONS CO. DEFERRED SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
================================================================================
NOTE 3 - INVESTMENTS
The following table presents investments at December 31, 1998 and 1997.
Investments that represent 5% or more of the Plan's net assets are separately
identified.
<TABLE>
<CAPTION>
1998 1997
<S> <C> <C>
Bond Fund of America $ 2,114,508 $ 1,178,028
EuroPacific Growth Fund 1,210,783 -
Stable Value Fund 3,844,575 -
Fundamental Investors 4,936,964 2,835,136
Franklin Balance Sheet Investment Fund 2,011,256 -
Franklin Real Estate Securities 1,241,302 -
MFS Massachusetts Investors Trust 5,505,575 -
Lord Abbett Developing Growth A 1,574,369 -
Fidelity Magellan - 4,618,992
Fidelity Overseas - 1,094,539
Fidelity Puritan - 3,019,541
American 20th Century Ultra - 3,623,391
Guaranteed Fund - 4,228,921
Other 1,601,902 1,179,391
--------- ---------
$ 24,041,234 $ 21,777,939
============ =============
</TABLE>
During 1998 and 1997, the Plan's investments (including investments bought, sold
and held during the year) appreciated in value by $2,152,999 and $3,163,126,
respectively, as follows:
<TABLE>
<CAPTION>
1998 1997
<S> <C> <C>
Mutual funds at fair value as determined
by quoted market prices. $ 2,197,941 $ 3,153,211
Life insurance contracts at cash value. 14,663 9,915
The Lamson & Sessions Co. stock at
fair value as determined by quoted market
prices. (59,605) -
---------- -------------
$ 2,152,999 $ 3,163,126
============ ============
</TABLE>
NOTE 4 - MUTUAL FUNDS - NATIONWIDE
The table on page 15 presents the changes in those net assets available for
benefits which were held in mutual funds by Nationwide Life Insurance Company,
the former custodian of the Plan's assets. The data presented in this table has
been combined in the Statement of Changes in Net Assets Available for Benefits
for the year ended December 31, 1998.
14
<PAGE> 15
<TABLE>
<CAPTION>
THE LAMSON & SESSIONS CO. DEFERRED SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
====================================================================================================================================
NOTE 4 - MUTUAL FUNDS - NATIONWIDE (CONTINUED)
MUTUAL FUNDS - NATIONWIDE YEAR ENDED DECEMBER 31, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
PARTICIPANT DIRECTED
------------------------------------------------------------------------------
BOND FUND FUNDAMENTAL FIDELITY FIDELITY FIDELITY
OF AMERICA INVESTORS MAGELLAN OVERSEAS PURITAN
<S> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS ATTRIBUTABLE TO:
Investment income
Net appreciation (depreciation)
in fair value of investments $ 31,084 $ 315,136 $ 675,141 $ 175,791 $ 281,077
Interest -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
$ 31,084 $ 315,136 $ 675,141 $ 175,791 $ 281,077
- ------------------------------------------------------------------------------------------------------------------------------
Contributions
Employee salary deferrals $ 20,958 $ 50,835 $ 73,742 $ 22,745 $ 49,436
Employer matching 9,791 21,683 31,605 9,517 21,039
Rollover contributions -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
$ 30,749 $ 72,518 $ 105,347 $ 32,262 $ 70,475
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL ADDITIONS $ 61,833 $ 387,654 $ 780,488 $ 208,053 $ 351,552
- ------------------------------------------------------------------------------------------------------------------------------
DEDUCTIONS FROM NET ASSETS ATTRIBUTABLE TO:
Benefits paid to participants $ (318) $ -- $ -- $ -- $ --
Insurance premiums (110) (695) (463) (181) (444)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DEDUCTIONS $ (428) $ (695) $ (463) $ (181) $ (444)
- ------------------------------------------------------------------------------------------------------------------------------
Investment Election Transfers - In/(Out) (1,239,433) (3,222,095) (5,399,017) (1,302,411) (3,370,649)
- ------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) $ (1,178,028) $ (2,835,136) $ (4,618,992) $ (1,094,539) $ (3,019,541)
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year $ 1,178,028 $ 2,835,136 $ 4,618,992 $ 1,094,539 $ 3,019,541
==============================================================================================================================
END OF YEAR $ -- $ -- $ -- $ -- $ --
==============================================================================================================================
<CAPTION>
AMERICAN
20TH
MONEY CENTURY GUARANTEED
MARKET ULTRA FUND TOTAL
<S> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS ATTRIBUTABLE TO:
Investment income
Net appreciation (depreciation)
in fair value of investments $ 8,083 $ 631,897 $ 83,512 $ 2,201,721
Interest -- -- -- --
- ----------------------------------------------------------------------------------------------------------
$ 8,083 $ 631,897 $ 83,512 $ 2,201,721
- ----------------------------------------------------------------------------------------------------------
Contributions
Employee salary deferrals $ -- $ 81,907 $ 79,364 $ 378,987
Employer matching -- 33,291 36,677 163,603
Rollover contributions -- -- -- --
- ----------------------------------------------------------------------------------------------------------
$ -- $ 115,198 $ 116,041 $ 542,590
- ----------------------------------------------------------------------------------------------------------
TOTAL ADDITIONS $ 8,083 $ 747,095 $ 199,553 $ 2,744,311
- ----------------------------------------------------------------------------------------------------------
DEDUCTIONS FROM NET ASSETS ATTRIBUTABLE TO:
Benefits paid to participants $ -- $ -- $ (219,232) $ (219,550)
Insurance premiums -- (293) (211) (2,397)
- ----------------------------------------------------------------------------------------------------------
TOTAL DEDUCTIONS $ -- $ (293) $ (219,443) $ (221,947)
- ----------------------------------------------------------------------------------------------------------
Investment Election Transfers - In/(Out) (338,499) (4,370,193) (4,209,031) (23,451,328)
- ----------------------------------------------------------------------------------------------------------
Net Increase (Decrease) $ (330,416) $ (3,623,391) $ (4,228,921) $(20,928,964)
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year $ 330,416 $ 3,623,391 $ 4,228,921 $ 20,928,964
==========================================================================================================
END OF YEAR $ -- $ -- $ -- $ --
==========================================================================================================
</TABLE>
15
<PAGE> 16
THE LAMSON & SESSIONS CO. DEFERRED SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
================================================================================
NOTE 5 - MUTUAL FUNDS - PERSHING
The table on page 17 presents the changes in those net assets available for
benefits which were held in mutual funds by Pershing, the custodian of the
Plan's assets. The data presented in this table has been combined in the
Statement of Changes in Net Assets Available for Benefits for the year
ended December 31, 1998.
16
<PAGE> 17
<TABLE>
<CAPTION>
THE LAMSON & SESSIONS CO. DEFERRED SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
================================================================================
NOTE 5 - MUTUAL FUNDS - PERSHING (CONTINUED)
MUTUAL FUNDS - PERSHING YEAR ENDED DECEMBER 31, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
PARTICIPANT DIRECTED
--------------------------------------------------------------------------------------
TEMPLETON TEMPLETON
DEVELOPING FOREIGN
FUNDAMENTAL EUROPACIFIC STABLE VALUE MARKETS SMALLER
INVESTORS GROWTH FUND FUND TRUST COMPANIES
<S> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS ATTRIBUTABLE TO:
Investment income
Net appreciation (depreciation)
in fair value of investments $ 195,735 $ (13,346) $ 141,005 $ (112,565) $ (83,896)
Interest -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
$ 195,735 $ (13,346) $ 141,005 $ (112,565) $ (83,896)
- ------------------------------------------------------------------------------------------------------------------------------
Contributions
Employee salary deferrals $ 321,461 $ 100,142 $ 234,269 $ 46,972 $ 49,533
Employer matching 109,435 35,611 83,779 17,018 17,994
Rollover contributions 2,221 973 -- 654 654
- ------------------------------------------------------------------------------------------------------------------------------
$ 433,117 $ 136,726 $ 318,048 $ 64,644 $ 68,181
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL ADDITIONS $ 628,852 $ 123,380 $ 459,053 $ (47,921) $ (15,715)
- ------------------------------------------------------------------------------------------------------------------------------
DEDUCTIONS FROM NET ASSETS ATTRIBUTABLE TO:
Benefits paid to participants $ (474,268) $ (110,989) $ (647,383) $ (5,139) $ (15,654)
Insurance premiums (1,908) (462) (729) (342) (342)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL DEDUCTIONS $ (476,176) $ (111,451) $ (648,112) $ (5,481) $ (15,996)
- ------------------------------------------------------------------------------------------------------------------------------
Investment Election Transfers - In/(Out) 4,784,288 1,198,854 4,033,634 439,159 462,656
- ------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) $ 4,936,964 $ 1,210,783 $ 3,844,575 $ 385,757 $ 430,945
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year $ -- $ -- $ -- $ -- $ --
==============================================================================================================================
END OF YEAR $ 4,936,964 $ 1,210,783 $ 3,844,575 $ 385,757 $ 430,945
==============================================================================================================================
<CAPTION>
MUTUAL FUNDS - PERSHING YEAR ENDED DECEMBER 31, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
PARTICIPANT DIRECTED
-------------------------------------------------------------------------------------
FRANKLIN
BALANCE MFS MASSA-
SHEET FRANKLIN CHUSETTS LORD ABBETT
BOND FUND INVESTMENT REAL ESTATE INVESTORS DEVELOPING
OF AMERICA FUND SECURITIES FUND GROWTH A
<S> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS ATTRIBUTABLE TO:
Investment income
Net appreciation (depreciation)
in fair value of investments $ 41,473 $ (232,418) $ (237,450) $ 344,709 $ (47,027)
Interest -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
$ 41,473 $ (232,418) $ (237,450) $ 344,709 $ (47,027)
- ----------------------------------------------------------------------------------------------------------------------------
Contributions
Employee salary deferrals $ 140,077 $ 196,922 $ 114,909 $ 314,049 $ 145,345
Employer matching 50,442 66,359 40,145 103,569 48,780
Rollover contributions 637 1,795 912 1,658 1,141
- ----------------------------------------------------------------------------------------------------------------------------
$ 191,156 $ 265,076 $ 155,966 $ 419,276 $ 195,266
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL ADDITIONS $ 232,629 $ 32,658 $ (81,484) $ 763,985 $ 148,239
- ----------------------------------------------------------------------------------------------------------------------------
DEDUCTIONS FROM NET ASSETS ATTRIBUTABLE TO:
Benefits paid to participants $ (301,105) $ (66,651) $ (75,040) $ (776,772) $ (31,852)
Insurance premiums (1,383) (578) (1,028) (976) (241)
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL DEDUCTIONS $ (302,488) $ (67,229) $ (76,068) $ (777,748) $ (32,093)
- ----------------------------------------------------------------------------------------------------------------------------
Investment Election Transfers - In/(Out) 2,184,367 2,045,827 1,398,854 5,519,338 1,458,223
- ----------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) $ 2,114,508 $ 2,011,256 $ 1,241,302 $ 5,505,575 $ 1,574,369
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year $ -- $ -- $ -- $ -- $ --
============================================================================================================================
END OF YEAR $ 2,114,508 $ 2,011,256 $ 1,241,302 $ 5,505,575 $ 1,574,369
============================================================================================================================
</TABLE>
17
<PAGE> 18
<TABLE>
<CAPTION>
MUTUAL FUNDS - PERSHING YEAR ENDED DECEMBER 31, 1998
- --------------------------------------------------------------------------------
PARTICIPANT DIRECTED
----------------------------------
TOTAL
<S> <C>
ADDITIONS TO NET ASSETS ATTRIBUTABLE TO:
Investment income
Net appreciation (depreciation)
in fair value of investments $ (3,780)
Interest --
- ------------------------------------------------------------
$ (3,780)
- ------------------------------------------------------------
Contributions
Employee salary deferrals $ 1,663,679
Employer matching 573,132
Rollover contributions 10,645
- ------------------------------------------------------------
$ 2,247,456
- ------------------------------------------------------------
TOTAL ADDITIONS $ 2,243,676
- ------------------------------------------------------------
DEDUCTIONS FROM NET ASSETS ATTRIBUTABLE TO:
Benefits paid to participants $ (2,504,853)
Insurance premiums (7,989)
- ------------------------------------------------------------
TOTAL DEDUCTIONS $ (2,512,842)
- ------------------------------------------------------------
Investment Election Transfers - In/(Out) 23,525,200
- ------------------------------------------------------------
Net Increase (Decrease) $ 23,256,034
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year $ --
============================================================
END OF YEAR $ 23,256,034
============================================================
</TABLE>
18
<PAGE> 19
THE LAMSON & SESSIONS CO. DEFERRED SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
================================================================================
NOTE 6 - TAX STATUS
The Internal Revenue Service has determined and informed the Company by a
letter dated February 14, 1996, that the Plan is designed in accordance
with applicable sections of the Internal Revenue Code (IRC). The Plan has
been amended since receiving the determination letter. However, the Plan
administrator believes that the Plan is designed and is currently being
operated in compliance with the applicable requirements of the IRC.
NOTE 7 - PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the
right under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of ERISA. In the event of Plan
termination, participants will immediately become 100% vested in their
accounts.
NOTE 8 - RELATED PARTY TRANSACTIONS
The Lamson & Sessions Stock Fund invests in Lamson & Sessions common stock,
which is traded on the New York Stock Exchange under the symbol LMS. The
fund maintains short-term cash sufficient to meet its estimated daily cash
needs. The fund is purchased on the open market at open market prices.
Transactions in the fund qualify as party-in-interest transactions.
19
<PAGE> 20
ITEM 27(a) - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES EIN: 34-0349210
Plan: 028
===============================================================================
DECEMBER 31, 1998
<TABLE>
<CAPTION>
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E
-------- -------- -------- --------- --------
<S> <C> <C> <C> <C>
IDENTITY OF ISSUE,
BORROWER, LESSOR OR DESCRIPTION OF CURRENT
SIMILAR PARTY INVESTMENT(1) COST VALUE
--------------------- ----------------------- -------------- --------------
American Funds Bond Fund of America $ 2,176,455 $ 2,114,508
EuroPacific Growth Fund 1,276,485 1,210,783
Fundamental Investors 5,157,377 4,936,964
Franklin Templeton Foreign Smaller Companies 512,866 430,945
Developing Markets Fund 484,343 385,757
Balance Sheet Investment Fund 2,237,967 2,011,256
Real Estate Securities 1,526,392 1,241,302
MFS Massachusetts Investors Trust 5,373,520 5,505,575
Lord Abbett Developing Growth A 1,597,939 1,574,369
Invesco Stable Value Fund 3,835,516 3,844,575
New England Insurance N/A 97,128
* Pershing Money Market Account 125,782 125,782
* Lamson & Sessions Stock Fund 176,353 176,353
Participant Loans Participant loans with various rates
of interest from 7.25% to 11.58%
and various maturity dates
through 2003 N/A 385,937
=============================================================================================================================
TOTAL ASSETS HELD FOR INVESTMENT PURPOSES $ 24,480,995 $ 24,041,234
=============================================================================================================================
- --------------------------------------------------------------------
* Party-In-Interest
(1) Including maturity date, rate of interest, collateral, par or
maturity value, where applicable.
</TABLE>
See accompanying independent auditors' report.
20
<PAGE> 21
ITEM 27(d) - SCHEDULE OF REPORTABLE TRANSACTIONS EIN: 34-0349210
Plan: 028
===============================================================================
YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
COLUMN A COLUMN B COLUMN C COLUMN D
-------- -------- -------- --------
IDENTITY
OF PARTY DESCRIPTION OF PURCHASE CURRENT
INVOLVED ASSETS PRICE VALUE
-------- ------ ----- -----
SINGLE TRANSACTIONS INVOLVING AN AMOUNT IN EXCESS OF 5% OF THE CURRENT VALUE OF PLAN ASSETS
<S> <C> <C> <C>
American Funds Bond Fund of America $ 1,943,429
EuroPacific Growth Fund 1,142,772
Fundamental Investors 4,342,840
Franklin/Templeton Franklin Balance Sheet Investment Fund 1,974,919
Franklin Real Estate Securities 1,251,117
Invesco Stable Value Fund 1,637,024
Stable Value Fund 2,066,083
Lord, Abbett & Co. Lord Abbett Developing Growth A 1,391,215
MFS MFS Massachusetts Investors Trust A 5,243,461
Nationwide Fin. Svc. American Century Ultra Investors 4,461,966
Bond Fund of America 1,208,750
Fidelity Magellan 5,446,443
Fidelity Overseas Portfolio 1,266,594
Fidelity Puritan 3,359,990
Fundamental Investors 3,268,639
Nationwide Fixed Inter. 4,175,459
SERIES OF TRANSACTIONS, IN THE AGGREGATE, IN EXCESS OF 5% OF THE CURRENT VALUE OF PLAN ASSETS:
American Funds Bond Fund of America $ 2,681,326
EuroPacific Growth Fund 1,491,277
Fundamental Investors 5,823,877
Franklin/Templeton Franklin Balance Sheet Investment Fund 2,541,285
Franklin Real Estate Securities 1,746,960
Invesco Stable Value Fund 4,602,779
Lord, Abbett & Co. Lord Abbett Developing Growth A 1,784,697
MFS MFS Massachusetts Investors Trust A 6,630,403
MFS Massachusetts Investors Trust A 1,220,544
Nationwide Fin. Svc. American Century Ultra Investors 4,462,259
Bond Fund of America 1,244,008
Fidelity Magellan 5,446,906
Fidelity Overseas Portfolio 1,307,020
Fidelity Puritan 3,380,095
Fundamental Investors 3,269,333
Nationwide Fixed Inter. 4,447,018
<CAPTION>
COLUMN A COLUMN B COLUMN G COLUMN H COLUMN I
-------- -------- -------- -------- --------
CURRENT
VALUE OF
IDENTITY ASSET ON NET
OF PARTY DESCRIPTION OF COST OF TRANSACTION GAIN
INVOLVED ASSETS ASSET DATE (LOSS)
-------- ------ ----- ---- ------
SINGLE TRANSACTIONS INVOLVING AN AMOUNT IN EXCESS OF 5% OF THE CURRENT VALUE OF PLAN ASSETS
<S> <C> <C> <C> <C>
American Funds Bond Fund of America $ 1,943,429 $ 1,943,429
EuroPacific Growth Fund 1,142,772 1,142,772
Fundamental Investors 4,342,840 4,342,840
Franklin/Templeton Franklin Balance Sheet Investment Fund 1,974,919 1,974,919
Franklin Real Estate Securities 1,251,117 1,251,117
Invesco Stable Value Fund 1,637,024 1,637,024
Stable Value Fund 2,066,083 2,066,083
Lord, Abbett & Co. Lord Abbett Developing Growth A 1,391,215 1,391,215
MFS MFS Massachusetts Investors Trust A 5,243,461 5,243,461
Nationwide Fin. Svc. American Century Ultra Investors N/A 4,461,966 -
Bond Fund of America N/A 1,208,750 -
Fidelity Magellan N/A 5,446,443 -
Fidelity Overseas Portfolio N/A 1,266,594 -
Fidelity Puritan N/A 3,359,990 -
Fundamental Investors N/A 3,268,639 -
Nationwide Fixed Inter. N/A 4,175,459 -
SERIES OF TRANSACTIONS, IN THE AGGREGATE, IN EXCESS OF 5% OF THE CURRENT VALUE OF PLAN ASSETS:
American Funds Bond Fund of America $ 2,681,326 $ 2,681,326
EuroPacific Growth Fund 1,491,277 1,491,277
Fundamental Investors 5,823,877 5,823,877
Franklin/Templeton Franklin Balance Sheet Investment Fund 2,541,285 2,541,285
Franklin Real Estate Securities 1,746,960 1,746,960
Invesco Stable Value Fund 4,602,779 4,602,779
Lord, Abbett & Co. Lord Abbett Developing Growth A 1,784,697 1,784,697
MFS MFS Massachusetts Investors Trust A 6,630,403 6,630,403
MFS Massachusetts Investors Trust A 1,256,883 1,220,544 36,340
Nationwide Fin. Svc. American Century Ultra Investors N/A 4,462,259 -
Bond Fund of America N/A 1,244,008 -
Fidelity Magellan N/A 5,446,906 -
Fidelity Overseas Portfolio N/A 1,307,020 -
Fidelity Puritan N/A 3,380,095 -
Fundamental Investors N/A 3,269,333 -
Nationwide Fixed Inter. N/A 4,447,018 -
</TABLE>
Columns E, "Lease Rental," and F, "Expense Incurred with Transaction," have been
omitted because there is nothing to report. N/A - Historical cost not available.
See accompanying independent auditors' report.
21
<PAGE> 22
THE LAMSON & SESSIONS CO. DEFERRED SAVINGS PLAN
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act
of 1934, the trustees (or other person who administer the employee
benefit Plan) have duly caused this annual report to be signed on its
behalf by the undersigned hereunto duly authorized.
THE LAMSON & SESSIONS CO.
DEFERRED SAVINGS PLAN
Date: June 29,1999 By:/s/ James J. Abel
--------------------------
Executive Vice President, Secretary,
Treasurer and Chief Financial Officer
22
<PAGE> 23
EXHIBIT INDEX
EXHIBIT EXHIBIT
NUMBER DESCRIPTION
- ------ -----------
23 Consent of Moore Stephens Apple
23
<PAGE> 1
Exhibit 23
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
We consent to the incorporation by reference in the Registration Statement of
The Lamson & Sessions Co. (Form S-8, File No. 333-46953) pertaining to The
Lamson & Sessions Co. Deferred Savings Plan (the "Plan"), of our report dated
June 15, 1999, with respect to the financial statements and supplemental
schedules of the Plan included in the Plan's Annual Report on Form 11-K for the
year ended December 31, 1998.
Moore Stephens Apple
June 29, 1999
24
