UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------
FORM 10-K/A-1
|X| ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1998
OR
|_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ______ to ______
----------------
Commission file number 1-9924
----------------
CITIGROUP INC.
(Exact name of registrant as specified in its charter)
Delaware 52-1568099
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
153 East 53rd Street, New York, New York 10043
(Address of principal executive offices) (Zip Code)
(212) 559-1000
(Registrant's telephone number, including area code)
----------------
Securities registered pursuant to Section 12(b) of the Act:
<TABLE>
<CAPTION>
Title of each class Name of each exchange on which registered
------------------- -----------------------------------------
<S> <C>
Common Stock, par value $.01 per share New York Stock Exchange and Pacific
Exchange
Depositary Shares, each representing 1/5th of a share of New York Stock Exchange
6.365% Cumulative Preferred Stock, Series F
Depositary Shares, each representing 1/5th of a share of New York Stock Exchange
6.213% Cumulative Preferred Stock, Series G
Depositary Shares, each representing 1/5th of a share of New York Stock Exchange
6.231% Cumulative Preferred Stock, Series H
Depositary Shares, each representing 1/20th of a share of New York Stock Exchange
8.40% Cumulative Preferred Stock, Series K
Depositary Shares, each representing 1/5th of a share of New York Stock Exchange
5.864% Cumulative Preferred Stock, Series M
Depositary Shares, each representing 1/10th of a share of New York Stock Exchange
Adjustable Rate Cumulative Preferred Stock, Series Q
Depositary Shares, each representing 1/10th of a share of New York Stock Exchange
Adjustable Rate Cumulative Preferred Stock, Series R
Depositary Shares, each representing 1/10th of a share of New York Stock Exchange
8.30% Noncumulative Preferred Stock, Series S
Depositary Shares, each representing 1/10th of a share of New York Stock Exchange
8 1/2% Noncumulative Preferred Stock, Series T
Depositary Shares, each representing 1/10th of a share of New York Stock Exchange
7 3/4% Cumulative Preferred Stock, Series U
7 3/4% Notes Due June 15, 1999 New York Stock Exchange
8% Trust Preferred Securities of Subsidiary Trust (and New York Stock Exchange
registrant's guaranty with respect thereto)
7 3/4% Trust Preferred Securities of Subsidiary Trust (and New York Stock Exchange
registrant's guaranty with respect thereto)
7 5/8% Trust Preferred Securities of Subsidiary Trust (and New York Stock Exchange
registrant's guaranty with respect thereto)
6.850% Trust Preferred Securities (TRUPS(R)) of Subsidiary New York Stock Exchange
Trust (and registrant's guaranty with respect thereto)
7 % Trust Preferred Securities (TRUPS(R)) of Subsidiary New York Stock Exchange
Trust (and registrant's guaranty with respect thereto)
</TABLE>
Securities registered pursuant to Section 12(g) of the Act: None
[Cover page 1 of 2 pages.]
<PAGE>
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X NO
--- ---
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K.|X|
The aggregate market value of the voting stock held by nonaffiliates of the
registrant as of February 28, 1999 was approximately $132 billion.
As of February 28, 1999, 2,256,812,076 shares of the registrant's Common Stock,
par value $.01 per share, were outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Certain portions of the registrant's Annual Report to Stockholders for the
fiscal year ended December 31, 1998 are incorporated by reference into Part III
of this Form 10-K.
Certain portions of the registrant's Proxy Statement for the 1999 Annual Meeting
of Stockholders which was held on April 20, 1999 are incorporated by reference
into Part III of this Form 10-K.
[Cover page 2 of 2 pages.]
<PAGE>
EXPLANATORY NOTE
This Form 10-K/A-1 is being filed to include as an exhibit to the Form
10-K financial statements for the Travelers Group 401(k) Savings Plan pursuant
to Rule 15d-21 of the Securities Exchange Act of 1934, as amended. Other than
the related additions to the Exhibit Index, the text of Item 14 has not been
amended and speaks as of the date of the original filing of the Form 10-K.
2
<PAGE>
PART IV
-------
Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K.
(a) Documents filed as a part of the report:
(1) Financial Statements. See Index to Consolidated
Financial Statements and Schedules on page F-1 hereof.
(2) Financial Statement Schedules. See Index to Consolidated
Financial Statements and Schedules on page F-1 hereof.
(3) Exhibits:
See Exhibit Index.
(b) Reports on Form 8-K:
On October 26, 1998, the Company filed a Current Report on
Form 8-K, dated October 26, 1998, reporting under Item 5
thereof certain supplemental financial information relating to
the transaction with Citicorp and filing under Item 7 thereof
certain financial statements and exhibits.
On November 2, 1998, the Company filed a Current Report on
Form 8-K, dated October 29, 1998, filing under Item 7 thereof
certain exhibits relating to the offer and sale of the
Company's Floating Rate Senior Notes due February 3, 2000.
On November 2, 1998, the Company filed a Current Report on
Form 8-K, dated November 1, 1998, reporting under Item 5
thereof the issuance of a press release relating to the
integration of its corporate business and certain related
executive matters and filing under Item 7 thereof relevant
portions of such press release.
On November 13, 1998, the Company filed a Current Report on
Form 8-K, dated November 13, 1998, reporting under Item 5
thereof certain supplemental financial information relating to
the transaction with Citicorp and filing under Item 7 thereof
certain financial statements and exhibits.
On December 24, 1998, the Company filed a Current Report on
Form 8-K, dated December 15, 1998, reporting under Item 5
thereof the announced approval by the Company's Board of
Directors of a restructuring charge for the quarter ended
December 31, 1998.
No other reports on Form 8-K were filed during the fourth
quarter of 1998; however, on January 26, 1998, the Company
filed a Current Report on Form 8-K, dated January 25, 1998,
reporting under Item 5 thereof the results of its operations
for the quarter and year ended December 31, 1998, and certain
other selected financial data.
3
<PAGE>
EXHIBIT INDEX
-------------
Exhibit
Number Description of Exhibit
- ------ ----------------------
3.01.1 Restated Certificate of Incorporation of Citigroup Inc. (the
"Company"), incorporated by reference to Exhibit 4.01 to the
Company's Registration Statement on Form S-3 filed December
15, 1998 (No. 333-68949).
3.01.2 Certificate of Designation of 5.321% Cumulative Preferred
Stock, Series YY, of the Company, incorporated by reference to
Exhibit 4.45 to Amendment No. 1 to the Company's Registration
Statement on Form S-3 filed January 22, 1999 (No. 333-68949).
3.02 By-Laws of the Company effective October 8, 1998,
incorporated by reference to Exhibit 3.02 to the Company's
Quarterly Report on Form 10-Q for the fiscal quarter ended
September 30, 1998 (File No. 1-9924).
10.01* Employment Protection Agreement, dated as of December 31,
1987, between the Company (as successor to Commercial Credit
Company ("CCC")) and Sanford I. Weill, incorporated by
reference to Exhibit 10.03 to CCC's Annual Report on Form 10-K
for the fiscal year ended December 31, 1987 (File No. 1-6594).
10.02.1* Travelers Group Stock Option Plan (as amended and restated as
of April 24, 1996), incorporated by reference to Exhibit
10.02.1 to the Company's Annual Report on Form 10-K for the
fiscal year ended December 31, 1996 (File No. 1-9924) (the
"Company's 1996 10-K").
10.02.2* Amendment No. 14 to the Travelers Group Stock Option Plan,
incorporated by reference to Exhibit 10.01 to the Company's
Quarterly Report on Form 10-Q for the fiscal quarter ended
September 30, 1996 (File No. 1-9924) (the "Company's September
30, 1996 10-Q").
10.02.3* Amendment No. 15 to the Travelers Group Stock Option Plan
(effective July 23, 1997), incorporated by reference to
Exhibit 10.04 to the Company's Quarterly Report on Form 10-Q
for the fiscal quarter ended September 30, 1997 (File No.
1-9924) (the "Company's September 30, 1997 10-Q").
4
<PAGE>
Exhibit
Number Description of Exhibit
- ------ ----------------------
10.03* Travelers Group 1996 Stock Incentive Plan (as amended through
July 23, 1997), incorporated by reference to Exhibit 10.03 to
the Company's September 30, 1997 10-Q.
10.04* Travelers Group Inc. Retirement Benefit Equalization Plan (as
amended and restated as of January 2, 1996).
10.05* Citigroup Inc. Amended and Restated Compensation Plan for
Non-Employee Directors (as of October 20, 1998).
10.06.1* Supplemental Retirement Plan of the Company, incorporated by
reference to Exhibit 10.23 to the Company's Annual Report on
Form 10-K for the fiscal year ended December 31, 1990 (File
No. 1-9924).
10.06.2* Amendment to the Company's Supplemental Retirement Plan,
incorporated by reference to Exhibit 10.06.2 to the Company's
Annual Report on Form 10-K for the fiscal year ended December
31, 1993 (File No. 1-9924).
10.07* Travelers Group Amended and Restated Executive Performance
Compensation Plan (effective as of March 26, 1997).
10.08* Travelers Group Capital Accumulation Plan (as amended through
July 23, 1997), incorporated by reference to Exhibit 10.02 to
the Company's September 30, 1997 10-Q.
10.09* The Travelers Inc. Deferred Compensation and Partnership
Participation Plan, incorporated by reference to Exhibit 10.31
to the Company's Annual Report on Form 10-K/A-1 for the fiscal
year ended December 31, 1994 (File No. 1-9924).
5
<PAGE>
Exhibit
Number Description of Exhibit
- ------ ----------------------
10.10* The Travelers Insurance Deferred Compensation Plan (formerly
The Travelers Corporation TESIP Restoration and Non-Qualified
Savings Plan) (as amended through December 10, 1998).
10.11* The Travelers Corporation Directors' Deferred Compensation
Plan (as amended November 7, 1986), incorporated by reference
to Exhibit 10(d) to the Annual Report on Form 10-K of The
Travelers Corporation for the fiscal year ended December 31,
1986 (File No. 1-5799).
10.12* Travelers Property Casualty Corp. Capital Accumulation Plan
(as amended through July 23, 1997), incorporated by reference
to Exhibit 10.01 to the Quarterly Report on Form 10-Q of
Travelers Property Casualty Corp. for the fiscal quarter ended
September 30, 1997 (File No. 1-14328).
10.13* Letter Agreement, dated as of August 14, 1997, between the
Company and Thomas W. Jones, incorporated by reference to
Exhibit 10.01 to the Company's September 30, 1997 10-Q (File
No. 1-09924).
10.14* Salomon Inc Equity Partnership Plan for Key Employees (as
amended through March 19, 1997), incorporated by reference to
Exhibit 10.19 to the Company's Annual Report on Form 10-K for
the fiscal year ended December 31, 1997 (File No. 1-9924).
10.15* Citicorp Executive Incentive Compensation Plan, incorporated
by reference to Citicorp's Registration Statement on Form S-8
filed April 25, 1988 (No. 2-47648).
10.16* Citicorp 1988 Stock Incentive Plan, incorporated by reference
to Exhibit 4 to Citicorp's Registration Statement on Form S-8
filed April 25, 1988 (No. 2-47648).
10.17* 1994 Citicorp Annual Incentive Plan for Selected Executive
Officers, incorporated by reference to Exhibit 10 to
Citicorp's March 30, 1994 10-Q (File No. 01-05378).
10.18* Citicorp Deferred Compensation Plan, incorporated by reference
to Exhibit 10 to Citicorp's Registration Statement on Form S-8
filed February 15, 1996 (No. 333-0983).
10.19* Citicorp 1997 Stock Incentive Plan, incorporated by reference
to Citicorp's 1997 Proxy Statement filed February 26, 1997
(File No. 01-05378).
10.20* Supplemental Executive Retirement Plan of Citicorp and
Affiliates, as amended and restated, incorporated by reference
to Exhibit 10.(F) to Citicorp's Annual Report on Form 10-K for
the fiscal year ended December 31, 1997 (File No. 1-05378).
10.21* Supplemental ERISA Compensation Plan of Citibank, N.A. and
Affiliates, as amended and restated, incorporated by reference
to Exhibit 10.(G) to Citicorp's Annual Report on Form 10-K for
the fiscal year ended December 31, 1997 (File No. 1-05378).
10.22* Supplemental ERISA Excess Plan of Citibank, N.A. and
Affiliates, as amended and restated, incorporated by reference
to Exhibit 10.(H) to Citicorp's Annual Report on Form 10-K for
the fiscal year ended December 31, 1997 (File No. 1-05378).
10.23* Directors' Deferred Compensation Plan, Restated May 1, 1988
12.01 Computation of Ratio of Earnings to Fixed Charges.
21.01 Subsidiaries of the Company.
23.01 Consent of KPMG LLP, Independent Auditors.
6
<PAGE>
Exhibit
Number Description of Exhibit
- ------ ----------------------
23.02 Consent of Arthur Andersen LLP, Independent Certified Public
Accountants.
23.03+ Accountants' consent to incorporation by reference of report
filed with Exhibit 99.03.
23.04+ Accountants' consent to incorporation by reference of report
filed with Exhibit 99.04.
24.01 Powers of Attorney.
27.01 Financial Data Schedule.
99.01 List of Securities Registered Pursuant to Section 12(b) of the
Securities Exchange Act of 1934.
99.02 Independent Auditors' Report.
99.03+ 1998 Financial Statements of Travelers Group 401(k) Savings
Plan.
99.04+ 1998 financial statements of The Savings Incentive Plan of
Citibank, N.A. and Participating Companies.
The total amount of securities authorized pursuant to any instrument
defining rights of holders of long-term debt of the Company does not
exceed 10% of the total assets of the Company and its consolidated
subsidiaries. The Company will furnish copies of any such instrument to
the SEC upon request.
Copies of any of the exhibits referred to above will be furnished at a
cost of $.25 per page (although no charge will be made for the 1998 Annual
Report on Form 10-K) to security holders who make written request therefor
to Corporate Governance, 425 Park Avenue, 2nd Floor, New York, New York
10043.
- ----------
* Denotes a management contract or compensatory plan or arrangement required
to be filed as an exhibit pursuant to Item 14(c) of Form 10-K.
+ Filed herewith.
Except as otherwise indicated, all exhibits were filed with the initial filing
of the Form 10-K.
7
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized, on the 29th day of
June, 1999.
CITIGROUP INC.
(Registrant)
By: /s/ Irwin Ettinger
--------------------------------------
Irwin Ettinger
Chief Accounting Officer
8
Consent of Independent Auditors
The Plans Administration Committee
Citigroup Inc.:
We consent to the incorporation by reference in the Registration Statements (No.
33-32130, 33-43997, 33-52027, 33-59524 and 333-25603) on Forms S-8 of Citigroup
Inc. of our report dated June 23, 1999 relating to the statements of net assets
available for plan benefits of Travelers Group 401(k) Savings Plan as of
December 31, 1998 and 1997, and the related statements of changes in net assets
available for plan benefits, for the years then ended, and the related
supplemental schedules of assets held for investment purposes at December 31,
1998 and schedule of reportable transactions for the year ended December 31,
1998, which report appears in the December 31, 1998 Annual Report on Form
10-K/A-1 of Citigroup Inc.
KPMG LLP
New York, New York
June 28, 1999
Exhibit 23.04
CONSENT OF INDEPENDENT AUDITORS
The Board of Directors
Citibank, N.A.:
We consent to incorporation by reference in Registration Statement No. 333-65487
on Form S-8 and Registration Statement No. 333-56589 on Form S-4 of Citigroup
Inc. of our report dated March 19, 1999 relating to the financial statements and
related schedules of The Savings Incentive Plan of Citibank, N.A. and
Participating Companies (as Amended and Restated) as of December 31, 1998 and
1997 and for each of the years in the two-year period ended December 31, 1998,
which report appears in Exhibit 99.04 of the Form 10-K/A of Citigroup Inc.
KPMG LLP
New York, New York
June 28, 1999
TRAVELERS GROUP 401(k) SAVINGS PLAN
December 31, 1998 and 1997
Index
Page
Independent Auditors' Report
Financial Statements:
Statements of Net Assets Available for Plan Benefits
at December 31, 1998 and 1997 2
Statements of Changes in Net Assets Available for Plan Benefits
for the years ended December 31, 1998 and 1997 3
Notes to Financial Statements 4
Supplemental Schedules *
Line 27(a) - Schedule of Assets Held for Investment Purposes
at December 31, 1998 28
Line 27(d) - Schedule of Reportable Transactions
for the year ended December 31, 1998 32
* Schedules required by Line 27 of IRS Form 5500 which are not applicable have
not been included.
<PAGE>
Independent Auditors' Report
To the Plans Administration Committee of
Citigroup Inc.:
We have audited the accompanying statements of net assets available for plan
benefits of Travelers Group 401(k) Savings Plan (the "Plan") as of December 31,
1998 and 1997, and the related statements of changes in net assets available for
plan benefits for the years then ended. These financial statements are the
responsibility of the Plan Administrator. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by the
Plan Administrator, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits as of December
31, 1998 and 1997, and the changes in net assets available for plan benefits for
the years then ended in conformity with generally accepted accounting
principles.
Our December 31, 1998 audit was performed for the purpose of forming an opinion
on the basic financial statements taken as a whole. The supplemental schedules
of assets held for investment purposes at December 31, 1998 and schedule of
reportable transactions 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 Administrator. The supplemental
schedules have been subjected to the auditing procedures applied in the audit of
the basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements, taken as a
whole.
KPMG LLP
New York, New York
June 23, 1999
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
Statements of Net Assets Available for Plan Benefits
December 31, 1998 and 1997
<TABLE>
<CAPTION>
December 31,
-------------------------------
Assets 1998 1997
-------------- --------------
<S> <C> <C>
Investments, at value (notes 2 and 3) $4,660,419,982 4,674,578,303
Cash 124,133,706 18,360,722
-------------- --------------
4,784,553,688 4,692,939,025
-------------- --------------
Receivables:
Contributions 30,755,433 17,193,699
Receivable for investments sold 21,950,421 7,607,584
Dividends and other 1,405,120 3,948,703
-------------- --------------
Total receivables 54,110,974 28,749,986
-------------- --------------
Total assets 4,838,664,662 4,721,689,011
-------------- --------------
Liabilities
ESOP note payable -- 17,450,000
Payable for investments purchased 8,996,543 6,818,531
-------------- --------------
Total liabilities 8,996,543 24,268,531
-------------- --------------
Net assets available for plan benefits $4,829,668,119 4,697,420,480
============== ==============
</TABLE>
See accompanying notes to financial statements.
2
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
Statements of Changes in Net Assets Available for Plan Benefits
Years ended December 31, 1998 and 1997
<TABLE>
<CAPTION>
1998 1997
--------------- ---------------
<S> <C> <C>
Investment activity:
Dividends $ 94,873,644 114,793,555
Interest 50,528,698 44,500,303
Net appreciation in fair value of investments 81,473,746 1,014,454,681
--------------- ---------------
226,876,088 1,173,748,539
Less: Trustee/administrative expenses (3,835,066) (1,830,683)
--------------- ---------------
Net investment income 223,041,022 1,171,917,856
--------------- ---------------
Contributions:
Participant 281,814,742 226,379,513
Employer 5,137,065 96,750
--------------- ---------------
Total contributions 286,951,807 226,476,263
--------------- ---------------
Distributions to participants (377,745,190) (217,969,324)
--------------- ---------------
Increase in net assets available for plan benefits 132,247,639 1,180,424,795
--------------- ---------------
Net assets available for plan benefits (note 1):
Beginning of year 4,697,420,480 2,859,499,288
Transfer from Salomon Inc -- 657,496,397
--------------- ---------------
End of year $ 4,829,668,119 4,697,420,480
=============== ===============
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(1) Plan Description
The following brief description of Travelers Group 401(k) Savings Plan
(the "Plan") is provided for general information purposes only.
Participants should refer to the Travelers Group 401(k) Savings Plan
Document (as amended and restated as of January 1, 1998) for more complete
information.
The Plan covers all eligible employees of the companies which made up the
former Travelers Group Inc. ("Travelers"), and eligible employees of
subsidiaries and affiliates of Travelers (the "Company").
On October 8, 1998 Citicorp merged with and into a newly formed, wholly
owned subsidiary of Travelers, and Travelers changed its name to Citigroup
Inc. ("Citigroup"). Under the terms of the merger each share of Travelers
common stock automatically represented one share of Citigroup common
stock. Following the exchange, former shareholders of Citicorp and
Travelers each own approximately 50% of the outstanding common stock of
Citigroup. Consequently, the "Travelers Common Stock Fund" was renamed
"Citigroup Common Stock Fund" and Citigroup became the Plan Sponsor.
In November 1997, a newly formed, wholly owned subsidiary of Travelers was
merged with and into Salomon Inc ("Salomon"). Effective as of December 1,
1997, the Salomon Inc Retirement Plan was merged into the Plan. All stock
held in the Salomon Stock Fund was exchanged for shares of Travelers and
such shares became part of the Travelers Common Stock Fund. The Salomon
merger resulted in a $657 million increase in net assets available for
plan benefits. The net assets transferred includes the employer
contribution for the 1997 plan year for Salomon Participants (as defined
below).
Effective as of January 1, 1996, the Travelers Savings, Investment and
Stock Ownership Plan ("TESIP") and the 401(k) Retirement and Profit
Sharing Plan of Copeland Associates, Inc. ("Copeland") were merged into
the Plan. The TESIP merger resulted in a $1,005 million net increase in
assets available for plan benefits. The Copeland merger resulted in a $28
million increase in net assets available for plan benefits.
Contributions
The Plan is a defined contribution plan designed to encourage savings on
the part of eligible employees. Eligible employees may elect to have a
portion of their regular pay, including overtime, reduced each pay period,
in any one percent increment, by an amount from 1% to 15% of their
compensation (subject to a statutory limitation) as pretax contributions.
Employee pre-tax contributions and employer contributions, as well as the
earnings thereon, are taxed to the participant only at the time of
distribution.
For the year ended December 31, 1998 ("1998 Plan Year"), Citigroup, for
itself or on behalf of the Company, as appropriate, contributed an
employer contribution on behalf of each participant, excluding Salomon
participants ("Salomon Participants"), ("Travelers Participants") as of
the last day of the Plan year. In the 1998 Plan Year, Citigroup
contributed $350 to all full-time eligible Travelers employees earning
$40,000 or less per annum who were with the Company as of December 31,
1997 and through December 31, 1998. $175 was contributed to all part-time
eligible Travelers employees with the Company as of December 31, 1997 and
through December 31, 1998. Travelers employees earning greater than
$40,000 per annum were not eligible to receive any employer contributions.
4
(Continued)
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
Citigroup, for itself or on behalf of the Company, makes contributions on
behalf of eligible Travelers Participants who elect to have pretax
contributions invested in the Citigroup Common Stock Fund (formerly the
Travelers Common Stock Fund) and the Travelers Property Casualty Common
Stock Fund by having such contributions invested at a 5% discount from the
fair value of such stock ("Discount Contributions"). In addition, certain
Travelers Participants are also eligible for a transitional benefit, in
which the Company continued to make a matching contribution of 50% of
their pretax contributions of up to 5% of their pay, through December 31,
1998.
Salomon Participants are eligible for a Company match of 75% of the lesser
of all pre-tax contributions to the Plan by participants or 6% of each
participant's compensation ("401(k) Matching Contributions"). The first
50% of the 401(k) Matching Contributions will be invested in the funds
chosen by the participant, the remaining 25% will be invested in the
Citigroup Common Stock Fund and may not be sold or transferred until the
participant retires or terminates employment with the Company. For Salomon
Participants earning $360,000 or more, the 401(k) Matching Contribution
will be at 50%, and be invested in funds chosen by the participant. In
addition, for these participants, the Company will make a contribution of
between 2% and 15% of the participant's compensation, up to $100,000,
based on the participant's years of service (the "Guideline Benefit").
The Plan also accepts or includes certain after-tax contributions, subject
to restrictions, related to certain Plan participants.
Although it has not expressed any intention to do so, Citigroup has the
right under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of the Employee Retirement
Income Security Act of 1974, as amended ("ERISA"). In the event of Plan
termination, either full or partial, all amounts credited to the
participants' accounts shall become 100% vested and, therefore, will
not be subject to forfeiture.
ESOP
In June 1989, TESIP was amended to include an Employee Stock Ownership
Plan (the "ESOP"). The ESOP borrowed $200 million, at a variable interest
rate, from Chase Manhattan Bank ("ESOP Loan"). Increasing semiannual
payments that began January 1, 1990 was amortized and the debt was paid by
January 1, 1998. The loan was guaranteed by Travelers.
The trustee for the ESOP purchased preferred shares, which were ultimately
converted to shares of Travelers Series C Convertible Preferred Stock, for
the ESOP, for $200 million with the proceeds of the ESOP Loan. Each share
of Series C Convertible Preferred Stock was guaranteed by Travelers at a
minimum value of $53.25 and is entitled to receive a cumulative annual
dividend of $4.53. Such dividends are reinvested in additional shares of
Series C Convertible Preferred Stock at a cost equal to the value
determined as described in note 2. These shares are then subject to the
same guaranteed minimum value. The Series C Convertible Preferred Stock
may have been held only by the ESOP trustee. The Series C Preferred was
convertible into one share of Travelers common stock for each $21.99 of
stated value of Series C Preferred, subject to antidilution adjustments in
certain circumstances. In January 1998, all the outstanding shares of
Series C Convertible Preferred Stock were converted into shares of
Travelers Common Stock and transferred into the Travelers Common Stock
Fund.
5
(Continued)
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
Fund Transfers and Allocation of Contributions
Participants may elect to divide their contributions among the funds
included in the Plan in increments divisible by 5%. Participants are only
eligible to participate in certain funds in the Plan, based upon which the
company the participant is directly employed.
A participant may elect to suspend his/her contributions, as soon as
administratively practicable, subject to the Plan's notice requirements.
Such participant may thereafter resume contributions as of the first pay
period beginning in any calendar month, subject to the Plan's notice
requirements. In addition, a participant may change the rate of his/her
contributions as of the first pay period beginning in any calendar month,
subject to the Plan's notice requirements.
A participant may elect to change the allocation of future contributions
among the funds once each calendar month on or about the first day of any
pay period, subject to the Plan's notice requirements.
A participant may elect to transfer the value of his/her contributions in
increments divisible by 5% or a specified number of whole shares from one
or more of the investment funds to another investment fund or funds,
subject to restriction, once each calendar month. The transfer will be
effective on or about the last business day of the calendar month, subject
to the Plan's notice requirements.
Vesting
The rights of a participant to his/her contributions and any earnings
thereon are at all times fully vested and non-forfeitable. Prior to
January 1, 1997, matching employer contributions for Travelers
Participants of the Plan are fully vested and non-forfeitable for those
participants whose initial date of employment is before January 1, 1993.
For those Travelers Participants whose initial date of employment is on or
after January 1, 1993, matching employer contributions are 100% vested and
non-forfeitable after five years of service.
Salomon Participants are immediately vested in the 401(k) Matching
Contributions and earnings thereon. With respect to the Guideline Benefit
Contributions, participants vest 10% per year after completing one year of
eligible service with the Company. Commencing with the fifth year, the
vesting percentage increases to 2O% as each subsequent year of eligible
service is completed, so that participants become fully vested after
completion of seven years of eligible service.
Forfeitures of employer matching contributions to the Plan by participants
that terminate employment prior to becoming fully vested are used to
reduce future employer contributions to the Plan. Forfeitures available in
individual funds within the Plan may be used to reduce employer matching
contributions required in other funds within the Plan. Forfeitures not yet
utilized to reduce contributions are reflected as a liability in the
statement of net assets available for plan benefits. For the years ended
December 31, 1998 and 1997, current Plan year employer contributions were
reduced by approximately $25.6 million and $17.1 million, respectively for
forfeitures.
Rollover and Transfer Contributions
The Plan permits participants to have their interests in other qualified
profit-sharing plans transferred to the Plan or to make rollover
contributions into the Plan from an individual retirement account (or
similar arrangement) resulting from a rollover from another qualified plan
or directly from another qualified plan. Such transfers or rollovers to
the Plan may only be made with the approval of the Plan Administrator and
do not affect any other contributions made by or on behalf of a
participant.
6
(Continued)
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
Loans
Subject to the Plan's provisions and the requirements contained within
ERISA and the Internal Revenue Code of 1986, as amended (the "Code"),
participants may apply for a loan from the Plan at an annual interest rate
equal to the prime rate, as published in The Wall Street Journal for the
first business day of the month in which the loan application is received,
plus one percent for Travelers Participants or plus two percent for
Salomon Participants.
Loan repayment by participants who are employed by the Company are
generally made through after-tax payroll deductions.
Withdrawls
Prior to termination of employment, a participant may withdraw, on or
about the last business day of any month, subject to the Plan's notice
requirements, all or a portion of the value of his or her rollover
contributions account, all or any portion of the vested value of his/her
account if the participant has attained age 59-1/2 or becomes totally and
permanently disabled, or all or any portion of the value of his/her
contributions account in the event of demonstrated financial hardship,
subject to the Plan's provisions. The Plan does not allow withdrawals of
401(k) Matching Contributions or Guideline Benefit Contributions to be
made prior to retirement or other termination of employment.
Withdrawals to which a participant is entitled are the amounts that can be
provided by the contributions and income thereon (including net realized
and unrealized investment gains and losses) allocated to each
participant's account. Withdrawals from the Citigroup Common Stock Fund,
the TAP Common Stock Fund and the American Express Common Stock Fund may
be paid in either shares of common stock or cash at the discretion of the
participant. Fractional shares and withdrawals from other funds are paid
in cash. Participants after-tax contributions and earnings thereon are
nonforfeitable and may be withdrawn at any time.
Distributions
Travelers Participants can have the total of his/her account distributed
in a lump-sum payment on the last business day of the month coincident
with his/her retirement date. If the participant leaves the Company before
retirement, he/she may elect to have his/her account distributed to
him/her as of the last business day of the month coincident to his/her
last day of employment. Salomon Participants have the option of receiving
their participant account balances at retirement in the form of a lump-sum
payment, in installments for any period of time from a minimum of ten
years up to life expectancy, in annuity payments or in other forms
approved by the Plan Administrator.
Distributions from the Citigroup Common Stock Fund, the TAP Common Stock
Fund and the American Express Common Stock Fund may be paid in either
shares of common stock or cash at the discretion of the participant.
7
(Continued)
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
Other Information
During 1997, the following Smith Barney Concert Allocation Series funds
were made available to the Travelers Participants: High Growth Portfolio,
Growth Portfolio, Balanced Portfolio, Conservative Portfolio and the
Income Portfolio. As a result of the merger described above, the following
funds were also added to the Plan during 1997: Salomon Brothers
Institutional Money Market Fund, Salomon Brothers Capital Fund Inc, SBAM
Broad Market Fixed Income Fund, Putnam OTC & Emerging Growth Fund,
Fidelity Blue Chip Growth Fund, Templeton Developing Markets Trust, BGI
Tactical Asset Allocation Fund, Europacific Growth Fund, Index Equity Fund
and the Intermediate Bond Fund.
(2) Summary of Significant Accounting Policies
(a) Accounting Method
The financial statements of the Plan have been prepared on the
accrual basis of accounting.
(b) Investment Valuation and Income Recognition
The following listing details the determination of the fair value of
each of the Plan's investments at year end:
The shares of common stock held by the Citigroup Common Stock Fund,
TAP Common Stock Fund and American Express Common Stock Fund are
valued at the last reported sale price on the New York Stock
Exchange for the last business day of the year.
The investments in the SBAM Broad Market Fixed Income Fund, managed
by Salomon Brothers Asset Management, and the Fisher Francis
Intermediate Bond Fund, managed by Fisher, Francis Trees & Watts are
valued at the last reported sales price on a national securities
exchange for the last business day of the year.
The shares of the following registered investment companies are
valued at the net asset value per share as of December 31, 1998 and
1997, as determined by the respective Investment Managers:
Van Kampen American Capital
Van Kampen American Capital Comstock Fund
Van Kampen American Capital Emerging Growth Fund
Van Kampen American Capital Enterprise Fund
Van Kampen American Capital Government Securities Fund
Van Kampen American Capital Reserve Fund
8
(Continued)
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
Smith Barney Mutual Funds Management Inc.
Smith Barney International Equity Fund
Smith Barney Money Fund
Smith Barney Aggressive Growth Fund
Smith Barney Appreciation Fund
Smith Barney Diversified Strategic Income Fund
Smith Barney Utilities Fund
Smith Barney U.S. Government Securities Fund
Smith Barney Income Return Fund
Smith Barney High Income Fund
Smith Barney Special Equities Fund
Smith Barney Managed Growth Fund
Smith Barney Concert Investment Series Government Fund
(formerly named the Common Sense Government Fund)
Smith Barney Concert Investment Series Growth & Income Fund
(formerly named the Common Sense Growth & Income Fund)
Smith Barney Concert Investment Series Growth Fund
(formerly named the Common Sense Growth Fund)
Smith Barney Money Fund Cash Portfolio (formerly named the
Common Sense Money Market Fund)
Smith Barney Large Capital Value Fund (formerly named the
Smith Barney Equity Income Fund)
Concert Allocation Series High Growth Portfolio
Concert Allocation Series Growth Portfolio
Concert Allocation Series Balanced Portfolio
Concert Allocation Series Conservative Portfolio
Concert Allocation Series Income Portfolio
Salomon Brothers Asset Management Inc
Salomon Brothers Institutional Money Market Fund
Salomon Brothers Capital Fund
Salomon Brothers High Yield Bond Fund
Copeland Administrative Operations Inc.
American Odyssey Core Equity Fund
American Odyssey Emerging Opportunities Fund
American Odyssey International Equity Fund
American Odyssey Long-Term Bond Fund
American Odyssey Intermediate-Term Bond Fund
American Odyssey Short-Term Bond Fund
American Odyssey In-Time Investing Funds
Other
Putnam OTC & Emerging Growth Fund - Putnam Investment
Management, Inc.
Fidelity Blue Chip Growth Fund - Fidelity Management and
Research Company
Templeton Developing Markets Trust - Templeton Investment
Management (Hong Kong) Limited
Europacific Growth Fund - The American Funds Group
S&P 500 Flagship Fund - State Street Bank and Trust Company
Russell 2000 Fund - State Street Bank and Trust Company
9
(Continued)
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
The investments in the following commingled trust funds are valued at the
net asset value per unit as of December 31, 1998 and 1997 as determined by
the respective Investment Managers:
BGI Tactical Asset Allocation Fund - Barclays Global Investors
Bankers Trust Index Equity Fund - Bankers Trust
Short-term money market investments, the Loan Fund and the Deferred Profit
Sharing Plan are valued at cost plus earned interest which approximates
fair value. Guaranteed investment contracts, which are included in the
guaranteed income funds, and guaranteed annuity contracts are valued at
contract value which approximates fair value. The ESOP Fund was carried at
estimated fair value, which is the greater of the minimum value of $53.25
per share, or estimated fair value as determined from an appraisal
prepared by an independent appraiser. The Universal Life Insurance
Contract is carried at contract value, which approximates fair value as
reported to the Plan by TransAmerica Assurance Company. Participant loans
receivable are valued at cost which approximates fair value.
Purchases and sales of securities are recorded on a trade date basis.
Interest income is recorded on the accrual basis and is net of interest
charges incurred on ESOP debt. Dividends are recorded on the ex-dividend
date. Net appreciation in the fair value of investments includes the
Plan's investments bought, sold and held during the year.
A significant concentration of the Plan's assets are invested in or
managed by the Company (see note 5 regarding related party transactions).
(c) Payment of Benefits
Benefits are recorded when paid.
(d) Use of Estimates in the Preparation of the Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles requires the Plan Administrator to make
estimates and assumptions that affect the reported amounts of assets and
liabilities, changes therein, and disclosure of contingent assets and
liabilities at the date the financial statements are prepared. Actual
results could differ from those estimates.
(e) Rec1assification
Certain reclassifications have been made to prior year's financial
statements to conform to the current year's presentation.
10
(Continued)
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(3) Investments
During the years ended December 31, 1998 and 1997, the Plan's investments
(including investments bought, sold and held) appreciated in value by $81
million and $1,014 million respectively, as follows:
1998 1997
--------------- ---------------
Common stock $ (133,111,499) 765,199,876
Mutual and commingled funds 214,599,764 249,129,721
Other (14,519) 125,084
--------------- ---------------
$ 81,473,746 1,014,454,681
=============== ===============
A summary of the Plans investments as of December 31, 1998 and 1997 is
listed below. Investments that represent more than 5% of the Plans assets
are separately identified:
<TABLE>
<CAPTION>
1998 1997
-------------- --------------
<S> <C> <C>
Investments at fair value as determined
by quoted market prices:
Citigroup (formerly Travelers Group Inc.) common $1,929,075,400 1,661,311,551
stock
Other common stock 173,674,212 198,299,071
Fixed income securities 11,510,376 47,036,517
-------------- --------------
2,114,259,988 1,906,647,139
Investments at estimated fair value:
Travelers Group Inc. Series C Preferred Stock -- 379,039,600
Mutual and commingled funds 1,735,350,609 1,587,075,641
-------------- --------------
1,735,350,609 1,966,115,241
Investments at contract value:
Travelers Insurance Company annuity contracts 482,980,407 481,255,926
Other investment contracts 233,651,324 233,560,539
Participant loans 94,177,654 86,936,264
Other -- 63,194
-------------- --------------
810,809,385 801,815,923
-------------- --------------
Total investments, at value $4,660,419,982 4,674,578,303
============== ==============
</TABLE>
11
(Continued)
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(4) Federal Income Tax Consequences
The Plan obtained its latest determination letter on November 1, 1996, in
which the Internal Revenue Service stated that the Plan, as then designed,
was in compliance with the applicable requirements of the Internal Revenue
Code. The Plan has been amended since receiving the determination letter.
However, the Plan Administrator and the Plan's tax counsel believe that
the Plan is currently designed and being operated in compliance with the
applicable requirements of the Internal Revenue Code. Therefore, no
provision for income taxes has been included in the Plan's financial
statements.
Matching employer contributions, pretax contributions, Discount
Contributions and the Plan earnings on all contributions are not taxable
to participants until they are withdrawn by or distributed to the
participants. Also, unrealized appreciation on shares of Citigroup common
stock, Travelers Property Casualty Corp. common stock and American Express
common stock distributed in a qualifying lump-sum distribution is not
taxable at the time of distribution.
(5) Related Party Transactions (parties in interest)
Certain Plan investments are shares of stock issued by Citigroup or its
subsidiaries. Citigroup is the Plan sponsor as defined by the Plan.
Certain Plan investments are shares of registered investment companies
(mutual funds, stock funds and investment contracts) that are valued by
Smith Barney Mutual Fund Management Inc. ("SB Mutual") and Salomon
Brothers Asset Management Inc ("Salomon Asset Management").
Substantially all transactions of the Copeland portion of the Plan
involved related parties as the manager, transfer agent and dividend
disbursement agent for the American Odyssey Funds. Copeland is an indirect
wholly owned subsidiary of Citigroup.
The Travelers Insurance Company, which issued group annuity contracts held
by the Plan trustee and provides recordkeeping and other administrative
services regarding the Plan, is an indirect wholly owned subsidiary of
Citigroup.
At December 31, 1998, Citibank, N.A. was custodian for many of the plans
investments. Citibank, N.A. is an indirect wholly owned subsidiary of
Citigroup.
12
(Continued)
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(6) Reconciliation of Financial Statements to Form 5500 Filed with the
Internal Revenue Service
These financial statements do not show a liability for amounts allocated
to accounts of participants withdrawing from the Plan that have not yet
been paid. The instructions to Form 5500 require that a liability be
recorded for benefit claims that have been processed and approved for
payment prior to December 31 but not yet paid as of that date.
The following is a reconciliation of net assets available for benefits per
the financial statements to the Form 5500:
Net assets available for benefits per the financial
Statements at December 31, 1998 $ 4,829,668,119
Less: Amounts allocated to withdrawing
participants (44,388,483)
---------------
Net assets available for benefits per IRS
Form 5500 at December 31, 1998 $ 4,785,279,636
===============
The following is a reconciliation of benefits paid to participants per the
financial statements to the Form 5500:
Year ended
December 31, 1998
-----------------
Distributions to participants per the financial
statements $377,745,190
Add: Amounts allocated to withdrawing participants at
December 31, 1998 44,388,483
------------
Benefits paid to participants per the Form 5500 $422,133,673
============
13
(Continued)
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(7) Subsequent Events
Effective January 1, 1999, the Plan was amended. In connection with the
amendment, investment options were consolidated into 20 separate
investment options as listed below:
Citigroup Common Stock Fund
Travelers Property Casualty Common Stock Fund
Stable Value Fund (New)
Smith Barney Money Funds Cash Portfolio
Smith Barney Government Securities Fund (New)
Smith Barney Diversified Strategic Income Fund
Salomon Brothers High Yield Bond Fund
Smith Barney Concert Allocation Series Balanced Fund
Smith Barney Concert Allocation Series Growth Fund
Smith Barney Concert Allocation Series High Growth Fund
State Street Global Advisors S&P 500 Index Strategy Fund
Smith Barney Appreciation Fund
Smith Barney Large Capital Growth Fund (New)
Smith Barney Large Capital Value Fund
Salomon Brothers Investors Fund (New)
State Street Global Advisors Russell 2000 Index Strategy Fund
Smith Barney Aggressive Growth Fund
Smith Barney International Equity Fund
EuroPacific Growth Fund
Templeton Developing Markets Trust
The following funds were either frozen to new participants or new
contributions as of January 1, 1999:
Van Kampen American Capital Emerging Growth Fund
Van Kampen American Capital Enterprise Fund
Van Kampen American Capital Comstock Fund
Van Kampen American Capital Government Securities Fund
American Express Common Stock Fund
Salomon Brothers Capital Fund
Salomon Brothers Institutional Money Market Fund
The Plan's remaining investment options were terminated and participants
were directed to transfer their account balances into the funds listed
above.
14
(Continued)
<PAGE>
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
8 Investment Allocation With Fund Information
Employee, employer, and rollover contributions are invested in various
funds as indicated in notes 2 and 3. These contributions are directed to
each fund at the discretion of the individual participant. Net assets
available for plan benefits and changes in net assets available for plan
benefits, by fund, are as follows:
<TABLE>
<CAPTION>
December 31, 1998
------------------------------------------------------------------------------------------
Citigroup
Common Stock
Fund Van Kampen Van Kampen Van Kampen Van Kampen
(formerly American Capital American Capital American American
Travelers Common Emerging Government Capital Capital
Stock Fund) Growth Fund Securities Fund Comstock Fund Reserve Fund
--------------- ---------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Assets
Investments, at value (notes 2 and 3) $ 1,929,075,400 196,916,280 5,023,835 16,717,378 --
Cash 6,183,078 7,194 2,111 3,860 14,500
Receivables:
Contributions 5,538,665 260,363 25,823 47,953 --
Receivable for investments sold -- -- -- -- 10,464,671
Dividends and other 99,560 425 9 61 60
--------------- --------------- --------------- --------------- ---------------
Total receivables 5,638,225 260,788 25,832 48,014 10,464,731
--------------- --------------- --------------- --------------- ---------------
Total assets 1,940,896,703 197,184,262 5,051,778 16,769,252 10,479,231
--------------- --------------- --------------- --------------- ---------------
Liabilities & Plan Equity
Payable for invesments purchased 2,930,918 -- -- -- --
--------------- --------------- --------------- --------------- ---------------
Total Liabilities 2,930,918 -- -- -- --
Net assets available for plan benefits $ 1,937,965,785 197,184,262 5,051,778 16,769,252 10,479,231
=============== =============== =============== =============== ===============
Investment activity:
Dividends 20,790,331 8,070,439 277,616 2,695,406 525,188
Interest 415,786 3,450 425 709 950
Net Appreciation (depreciation) in
fair value of investments (138,190,750) 42,021,098 81,109 -- --
--------------- --------------- --------------- --------------- ---------------
(116,984,635) 50,094,987 359,150 2,696,115 526,138
Less: Trustee/administrative expenses (1,361,998) (97,898) (8,442) (21,063) (15,720)
--------------- --------------- --------------- --------------- ---------------
Net investment income (loss) (118,346,633) 49,997,089 350,708 2,675,052 510,418
--------------- --------------- --------------- --------------- ---------------
Contributions:
Participant 86,666,630 17,900,729 365,650 1,149,039 398,205
Employer 5,137,063 -- -- -- --
--------------- --------------- --------------- --------------- ---------------
Total contributions 91,803,693 17,900,729 365,650 1,149,039 398,205
--------------- --------------- --------------- --------------- ---------------
Distributions to participants (138,777,919) (7,620,716) (705,322) (851,464) (1,399,325)
Loan activity, net (4,087,610) (33,225) (25,405) (49,224) (272,803)
Transfers from (to) other funds 437,566,636 (11,455,227) 398,953 (1,063,630) 728,057
--------------- --------------- --------------- --------------- ---------------
294,701,107 (19,109,168) (331,774) (1,964,318) (944,071)
Net increase (decrease) 268,158,167 48,788,650 384,584 1,859,773 (35,448)
--------------- --------------- --------------- --------------- ---------------
Net assets available for plan benefits:
Beginning of year 1,669,807,618 148,395,612 4,667,194 14,909,479 10,514,679
--------------- --------------- --------------- --------------- ---------------
End of Year $ 1,937,965,785 197,184,262 5,051,778 16,769,252 10,479,231
=============== =============== =============== =============== ===============
<CAPTION>
December 31, 1998
---------------------------------------------------------------------------
Smith Barney Smith Barney
Smith Barney Concert Concert
Concert Investment Investment
Investment Series Growth Series Smith Barney
Series Growth & Income Fund Government Money Fund
Fund (formerly Fund Cash Portfolio
(formerly Common Sense (formerly (formerly
Common Sense Growth & Common Sense Common Sense
Growth Income Government Money Market
Fund) Fund) Fund) Fund)
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Assets
Investments, at value (notes 2 & 3) -- -- -- 2,067,723
Cash 13,046 11,524 30,585 12
Receivables:
Contributions -- -- -- --
Receivable for investments sold 5,814,912 5,107,657 563,181 --
Dividends and other 526,028 201,196 378 4
--------------- --------------- --------------- ---------------
Total receivables 6,340,940 5,308,853 563,559 4
--------------- --------------- --------------- ---------------
Total assets 6,353,986 5,320,377 594,144 2,067,739
--------------- --------------- --------------- ---------------
Liabilities & Plan Equity
Payable for investments purchased -- -- -- --
--------------- --------------- --------------- ---------------
Total Liabilities -- -- -- --
Net assets available for plan benefits 6,353,986 5,320,377 594,144 2,067,739
=============== =============== =============== ===============
Investment activity:
Dividends 526,066 201,231 35,475 124,556
Interest 231 149 44 298
Net Appreciation (depreciation) in
fair value of investments 901,485 633,452 (256) --
--------------- --------------- --------------- ---------------
1,427,782 834,832 35,263 124,854
Less: Trustee/administrative expenses (9,149) -- 3,381 (5,565)
--------------- --------------- --------------- ---------------
Net investment income (loss) 1,418,633 834,832 38,644 119,289
--------------- --------------- --------------- ---------------
Contributions:
Participant 352,715 267,108 66,368 110,328
Employer -- -- -- --
--------------- --------------- --------------- ---------------
Total contributions 352,715 267,108 66,368 110,328
--------------- --------------- --------------- ---------------
Distributions to participants (124,470) (255,164) (45,720) (344,963)
Loan activity, net (41,646) (21,514) (694) 3,533
Transfers from (to) other funds (390,834) (202,113) (65,949) (257,018)
--------------- --------------- --------------- ---------------
(556,950) (478,791) (112,363) (598,448)
Net increase (decrease) 1,214,398 623,149 (7,351) (368,831)
--------------- --------------- --------------- ---------------
Net assets available for plan benefits:
Beginning of year 5,139,588 4,697,228 601,495 2,436,570
--------------- --------------- --------------- ---------------
End of Year 6,353,986 5,320,377 594,144 2,067,739
=============== =============== =============== ===============
</TABLE>
15
<PAGE>
Travelers Group Inc. 401(k) Savings Plan
Notes to Financial Statements
8 Investment Allocation (Continued)
<TABLE>
<CAPTION>
December 31, 1998
----------------------------------------------------------------------------
Concert Concert Concert Concert Concert
Allocation Allocation Allocation Allocation Allocation
Series High Series Series Series Series
Growth Growth Balanced Conservative Income
Portfolio Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Assets
Investments, at value (notes 2 & 3) $ 6,264,304 5,858,184 5,021,942 1,250,352 1,141,151
Cash 228 10,932 -- -- --
Receivables:
Contributions 67,433 46,622 720,782 -- --
Receivable for investments sold -- -- -- -- --
Dividends and other 9 1,759 14 1,993 57
------------ ------------ ------------ ------------ ------------
Total receivables 67,442 48,381 720,796 1,993 57
------------ ------------ ------------ ------------ ------------
Total assets 6,331,974 5,917,497 5,742,738 1,252,345 1,141,208
------------ ------------ ------------ ------------ ------------
Liabilities & Plan Equity
Payable for investments purchased -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Total Liabilities -- -- -- -- --
Net assets available for plan benefits $ 6,331,974 5,917,497 5,742,738 1,252,345 1,141,208
============ ============ ============ ============ ============
Investment activity:
Dividends 59,013 57,569 67,589 23,713 31,629
Interest 156,055 183,236 52,833 46,419 25,019
Net Appreciation (depreciation) in
fair value of investments 395,875 260,442 10,403 (31,800) (60,410)
------------ ------------ ------------ ------------ ------------
610,943 501,247 130,825 38,332 (3,762)
Less: Trustee/administrative expenses (8,580) (8,468) (7,927) (5,690) (5,563)
------------ ------------ ------------ ------------ ------------
Net investment income (loss) 602,363 492,779 122,898 32,642 (9,325)
------------ ------------ ------------ ------------ ------------
Contributions:
Participant 2,529,607 1,999,919 1,209,586 362,974 269,327
Employer -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Total contributions 2,529,607 1,999,919 1,209,586 362,974 269,327
------------ ------------ ------------ ------------ ------------
Distributions to participants (272,398) (290,271) (362,895) (89,163) (165,674)
Loan activity, net (105,758) (86,654) (24,999) (55,712) (21,477)
Transfers from (to) other funds 710,145 1,026,259 1,943,463 388,306 419,017
------------ ------------ ------------ ------------ ------------
331,989 649,334 1,555,569 243,431 231,866
Net increase (decrease) 3,463,959 3,142,032 2,888,053 639,047 491,868
------------ ------------ ------------ ------------ ------------
Net assets available for plan benefits:
Beginning of year 2,868,015 2,775,465 2,854,685 613,298 649,340
------------ ------------ ------------ ------------ ------------
End of Year $ 6,331,974 5,917,497 5,742,738 1,252,345 1,141,208
============ ============ ============ ============ ============
<CAPTION>
December 31, 1998
--------------------------------------------------------------
Smith Barney Van Kampen
U.S. American American Smith Barney
Government Capital Express Money Funds
Securities Enterprise Common Governmet
Fund Fund Stock Fund Portfolio
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Assets
Investments, at value (notes 2 & 3) 25,806,933 79,433,260 137,959,670 57,102,441
Cash 998 2,832 13,387 2,241
Receivables:
Contributions -- 76,834 -- 2,602,974
Receivable for investments sold -- -- -- --
Dividends and other 13 98 72 74
------------ ------------ ------------ ------------
Total receivables 13 76,932 72 2,603,048
------------ ------------ ------------ ------------
Total assets 25,807,944 79,513,024 137,973,129 59,707,730
------------ ------------ ------------ ------------
Liabilities & Plan Equity
Payable for investments purchased -- -- -- --
------------ ------------ ------------ ------------
Total Liabilities -- -- -- --
Net assets available for plan benefits 25,807,944 79,513,024 137,973,129 59,707,730
============ ============ ============ ============
Investment activity:
Dividends 1,945,315 3,065,328 944,756 2,882,948
Interest 338 1,143 3,961 1,509
Net Appreciation (depreciation) in
fair value of investments (410,675) 11,849,843 18,307,068 --
------------ ------------ ------------ ------------
1,534,978 14,916,314 19,255,785 2,884,457
Less: Trustee/administrative expenses (16,543) (35,741) (80,473) (32,192)
------------ ------------ ------------ ------------
Net investment income (loss) 1,518,435 14,880,573 19,175,312 2,852,265
------------ ------------ ------------ ------------
Contributions:
Participant 1,713,981 7,620,811 -- 3,484,592
Employer -- -- -- --
------------ ------------ ------------ ------------
Total contributions 1,713,981 7,620,811 -- 3,484,592
------------ ------------ ------------ ------------
Distributions to participants (2,076,362) (3,705,135) (8,296,442) (6,838,319)
Loan activity, net (29,974) 289,641 (849,300) (31,905)
Transfers from (to) other funds 1,746,866 (1,357,806) (4,197,151) 8,899,625
------------ ------------ ------------ ------------
(359,470) (4,773,300) (13,342,893) 2,029,401
Net increase (decrease) 2,872,946 17,728,084 5,832,419 8,366,258
------------ ------------ ------------ ------------
Net assets available for plan benefits:
Beginning of year 22,934,998 61,784,940 132,140,710 51,341,472
------------ ------------ ------------ ------------
End of Year 25,807,944 79,513,024 137,973,129 59,707,730
============ ============ ============ ============
</TABLE>
16
<PAGE>
Travelers Group Inc. 401(k) Savings Plan
Notes to Financial Statements
8 Investment Allocation (Continued)
<TABLE>
<CAPTION>
December 31, 1998
----------------------------------------------------------------------------------
Smith Barney Smith Barney Smith Barney
Aggressive Smith Barney International Diversified
Growth Appreciation Equity Strategic Smith Barney
Fund Fund Fund Income Fund Utilities Fund
----------------- --------------- ------------- ---------------- ------------
<S> <C> <C> <C> <C> <C>
Assets
Investments, at value (notes 2 and 3) $ 62,967,637 224,442,132 124,744,924 21,188,658 12,040,787
Cash 2,180 8,531 4,826 824 463
Receivables:
Contributions 1,965,032 302,981 136,322 444,186 --
Receivable for investments sold -- -- -- -- --
Dividends and other 116 323 162 9 (109)
---------------- -------------- ------------ --------------- -----------
Total receivables 1,965,148 303,304 136,484 444,195 (109)
---------------- -------------- ------------ --------------- -----------
Total assets 64,934,965 224,753,967 124,886,234 21,633,677 12,041,141
---------------- -------------- ------------ --------------- -----------
Liabilities & Plan Equity
Payable for investments purchased -- -- -- -- --
---------------- -------------- ------------ --------------- -----------
Total Liabilities -- -- -- -- --
Net assets available for plan benefits $ 64,934,965 224,753,967 124,886,234 21,633,677 12,041,141
================ ============== ============ =============== ===========
Investment activity:
Dividends 1,026,635 20,898,421 -- 1,641,809 3,059,984
Interest 896 2,788 2,407 319 320
Net Appreciation (depreciation) in
fair value of investments 15,021,108 18,563,506 13,926,670 (369,210) (1,649,736)
---------------- -------------- ------------ --------------- -----------
16,048,639 39,464,715 13,929,077 1,272,918 1,410,568
Less: Trustee/administrative expenses (28,527) (104,625) (68,405) (14,838) (10,045)
---------------- -------------- ------------ --------------- -----------
Net investment income (loss) 16,020,112 39,360,090 13,860,672 1,258,080 1,400,523
---------------- -------------- ------------ --------------- -----------
Contributions:
Participant 5,384,353 14,184,177 13,750,635 2,026,631 1,204,418
Employer -- -- -- -- --
---------------- -------------- ------------ --------------- -----------
Total contributions 5,384,353 14,184,177 13,750,635 2,026,631 1,204,418
---------------- -------------- ------------ --------------- -----------
Distributions to participants (2,545,610) (10,241,934) (6,931,748) (1,251,095) (660,226)
Loan activity, net (113,678) (548,403) 318,204 52,885 (2,636)
Transfers from (to) other funds 1,199,147 (11,904,532) (16,997,225) (834,590) (1,296,655)
---------------- -------------- ------------ --------------- -----------
(1,460,141) (22,694,869) (23,610,769) (2,032,800) (1,959,517)
Net increase (decrease) 19,944,324 30,849,398 4,000,538 1,251,911 645,424
---------------- -------------- ------------ --------------- -----------
Net assets available for plan benefits:
Beginning of year 44,990,641 193,904,569 120,885,696 20,381,766 11,395,717
---------------- -------------- ------------ --------------- -----------
End of Year $ 64,934,965 224,753,967 124,886,234 21,633,677 12,041,141
================ ============== ============ =============== ===========
<CAPTION>
December 31, 1998
-------------------------------------------------------------------
Smith Barney Smith Barney Smith Barney Smith Barney
Guaranteed Equity Income/ Special Managed
Income Large Capital Equities Growth
Fund Value Fund Fund Fund
------------- ---------------- -------------- -----------------
<S> <C> <C> <C> <C>
Assets
Investments, at value (notes 2 and 3) 145,837,694 165,670,792 10,519,394 16,538,787
Cash 9,016 6,340 379 694
Receivables:
Contributions -- 176,669 -- --
Receivable for investments sold -- -- -- --
Dividends and other 568 226 41 103
------------ --------------- ------------- ----------------
Total receivables 568 176,895 41 103
------------ --------------- ------------- ----------------
Total assets 145,847,278 165,854,027 10,519,814 16,539,584
------------ --------------- ------------- ----------------
Liabilities & Plan Equity
Payable for investments purchased -- -- -- --
------------ --------------- ------------- ----------------
Total Liabilities -- -- -- --
Net assets available for plan benefits 145,847,278 165,854,027 10,519,814 16,539,584
============ =============== ============= ================
Investment activity:
Dividends -- 11,627,209 -- 666,937
Interest 9,818,628 1,781 583 1,172
Net Appreciation (depreciation) in
fair value of investments -- 9,787,445 1,066,412 (1,087,664)
------------ --------------- ------------- ----------------
9,818,628 21,416,435 1,066,995 (419,555)
Less: Trustee/administrative expenses (506,031) (79,455) (9,770) (16,895)
------------ --------------- ------------- ----------------
Net investment income (loss) 9,312,597 21,336,980 1,057,225 (436,450)
------------ --------------- ------------- ----------------
Contributions:
Participant 7,160,916 8,708,685 2,095,148 3,375,670
Employer -- -- -- --
------------ --------------- ------------- ----------------
Total contributions 7,160,916 8,708,685 2,095,148 3,375,670
------------ --------------- ------------- ----------------
Distributions to participants (8,168,784) (7,828,792) (570,738) (1,223,880)
Loan activity, net (372,884) 70,735 112,973 208,656
Transfers from (to) other funds (11,974,098) (468,343) (6,522,249) (14,961,028)
------------ --------------- ------------- ----------------
(20,515,766) (8,226,400) (6,980,014) (15,976,252)
Net increase (decrease) (4,042,253) 21,819,265 (3,827,641) (13,037,032)
------------ --------------- ------------- ----------------
Net assets available for plan benefits:
Beginning of year 149,889,531 144,034,762 14,347,455 29,576,616
------------ --------------- ------------- ----------------
End of Year 145,847,278 165,854,027 10,519,814 16,539,584
============ =============== ============= ================
</TABLE>
17
<PAGE>
Travelers Group Inc. 401(k) Savings Plan
Notes to Financial Statements
8 Investment Allocation (Continued)
<TABLE>
<CAPTION>
December 31, 1998
-------------------------------------------------------------------------
Deferred
Profit Travelers Fixed Fixed The S&P 500 Russell 2000
Sharing Income Fund IRA Fund Flagship Fund Fund
------------ ----------- ------------- ------------- ------------
<S> <C> <C> <C> <C> <C>
Assets
Investments, at value (notes 2 and 3) $ -- 409,613,148 53,275,982 162,242,457 62,227,916
Cash -- -- -- -- --
Receivables:
Contributions -- -- -- 6,662,758 136,973
Receivable for investments sold -- -- -- -- --
Dividends and other -- -- -- 40 20
------------ ----------- ------------- ------------- ------------
Total receivables -- -- -- 6,662,798 136,993
------------ ----------- ------------- ------------- ------------
Total assets -- 409,613,148 53,275,982 168,905,255 62,364,909
------------ ----------- ------------- ------------- ------------
Liabilities & Plan Equity
Payable for investments purchased -- -- -- -- --
------------ ----------- ------------- ------------- ------------
Total Liabilities -- -- -- -- --
Net assets available for plan benefits $ -- 409,613,148 53,275,982 168,905,255 62,364,909
============ =========== ============= ============= ============
Investment activity:
Dividends -- -- -- -- --
Interest 2,645 25,447,835 3,398,757 29,966 23,092
Net Appreciation (depreciation) in
fair value of investments -- -- -- 35,029,463 (2,333,870)
------------ ----------- ------------- ------------- ------------
2,645 25,447,835 3,398,757 35,059,429 (2,310,778)
Less: Trustee/administrative expenses -- -- -- (83,478) (40,081)
------------ ----------- ------------- ------------- ------------
Net investment income (loss) 2,645 25,447,835 3,398,757 34,975,951 (2,350,859)
------------ ----------- ------------- ------------- ------------
Contributions:
Participant -- 35,867,284 -- 15,031,118 7,517,122
Employer -- -- -- -- --
------------ ----------- ------------- ------------- ------------
Total contributions -- 35,867,284 -- 15,031,118 7,517,122
------------ ----------- ------------- ------------- ------------
Distributions to participants -- (45,021,134) (8,250,514) (8,013,505) (4,373,211)
Loan activity, net -- 2,216,673 -- (854,517) (357,373)
Transfers from (to) other funds (65,839) (15,687,261) 351 9,117,730 (2,408,400)
------------ ----------- ------------- ------------- ------------
(65,839) (58,491,722) (8,250,163) 249,708 (7,138,984)
Net increase (decrease) (63,194) 2,823,397 (4,851,406) 50,256,777 (1,972,721)
------------ ----------- ------------- ------------- ------------
Net assets available for plan benefits:
Beginning of year 63,194 406,789,751 58,127,388 118,648,478 64,337,630
------------ ----------- ------------- ------------- ------------
End of Year $ -- 409,613,148 53,275,982 168,905,255 62,364,909
============ =========== ============= ============= ============
<CAPTION>
December 31, 1998
-----------------------------------------------------------
Term
TAP Interest
ESOP Stable Interest Common Guarantee
Fund Fund Stock Fund Contracts
------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
Assets
Investments, at value (notes 2 and 3) -- 20,091,276 35,714,542 8,610,678
Cash -- -- 20,776 --
Receivables:
Contributions -- -- 53,004 --
Receivable for investments sold -- -- -- --
Dividends and other -- -- 45,675 (28,958)
------------- ------------- -------------- -------------
Total receivables -- -- 98,679 (28,958)
------------- ------------- -------------- -------------
Total assets -- 20,091,276 35,833,997 8,581,720
------------- ------------- -------------- -------------
Liabilities & Plan Equity
Payable for investments purchased -- -- 46,875 --
------------- ------------- -------------- -------------
Total Liabilities -- -- 46,875 --
Net assets available for plan benefits -- 20,091,276 35,787,122 8,581,720
============= ============= ============== =============
Investment activity:
Dividends -- -- 520,819 --
Interest -- 1,328,420 10,953 647,924
Net Appreciation (depreciation) in
fair value of investments -- -- (13,227,817) --
------------- ------------- -------------- -------------
-- 1,328,420 (12,696,045) 647,924
Less: Trustee/administrative expenses -- -- (34,119) --
------------- ------------- -------------- -------------
Net investment income (loss) -- 1,328,420 (12,730,164) 647,924
------------- ------------- -------------- -------------
Contributions:
Participant -- 5,950,274 1,869,793 544,642
Employer -- -- -- --
------------- ------------- -------------- -------------
Total contributions -- 5,950,274 1,869,793 544,642
------------- ------------- -------------- -------------
Distributions to participants -- (2,722,151) (2,547,320) (626,709)
Loan activity, net -- (478,972) (785,961) 286,609
Transfers from (to) other funds (353,075,339) (782,900) (13,841,934) (1,259,258)
------------- ------------- -------------- -------------
(353,075,339) (3,984,023) (17,175,215) (1,599,358)
Net increase (decrease) (353,075,339) 3,294,671 (28,035,586) (406,792)
------------- ------------- -------------- -------------
Net assets available for plan benefits:
Beginning of year 353,075,339 16,796,605 63,822,708 8,988,512
------------- ------------- -------------- -------------
End of Year -- 20,091,276 35,787,122 8,581,720
============= ============= ============== =============
</TABLE>
18
<PAGE>
Travelers Group Inc. 401(k) Savings Plan
Notes to Financial Statements
8 Investment Allocation (Continued)
<TABLE>
<CAPTION>
December 31, 1998
----------------------------------------------------------------------------------
American
American Odyssey American American
Universal Odyssey Emerging Odyssey Odyssey
Life Core Opportunities International Long-Term
Insurance Equity Fund Fund Equity Fund Bond Fund
-------------- ------------- -------------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
Assets
Investments, at value (notes 2 and 3) $ 70,122 13,194,848 5,620,805 5,377,406 1,125,959
Cash -- -- -- -- --
Receivables:
Contributions -- 888 8,601 621 --
Receivable for investments sold -- -- -- -- --
Dividends and other -- -- -- -- --
-------------- ------------- -------------- ------------- ---------------
Total receivables -- 888 8,601 621 --
-------------- ------------- -------------- ------------- ---------------
Total assets 70,122 13,195,736 5,629,406 5,378,027 1,125,959
-------------- ------------- -------------- ------------- ---------------
Liabilities & Plan Equity
Payable for investments purchased -- -- -- -- --
-------------- ------------- -------------- ------------- ---------------
Total Liabilities -- -- -- -- --
Net assets available for plan benefits $ 70,122 13,195,736 5,629,406 5,378,027 1,125,959
============== ============= ============== ============= ===============
Investment activity:
Dividends -- -- -- -- --
Interest -- -- -- -- --
Net Appreciation (depreciation) in
fair value of investments 729 1,842,348 (466,201) 546,104 99,721
-------------- ------------- -------------- ------------- ---------------
729 1,842,348 (466,201) 546,104 99,721
Less: Trustee/administrative expenses -- -- -- -- --
-------------- ------------- -------------- ------------- ---------------
Net investment income (loss) 729 1,842,348 (466,201) 546,104 99,721
-------------- ------------- -------------- ------------- ---------------
Contributions:
Participant 20,828 1,461,027 757,423 585,760 136,693
Employer -- -- -- -- --
-------------- ------------- -------------- ------------- ---------------
Total contributions 20,828 1,461,027 757,423 585,760 136,693
-------------- ------------- -------------- ------------- ---------------
Distributions to participants (6,928) (758,505) (393,196) (426,233) (76,354)
Loan activity, net -- (172,100) (109,959) (107,800) (10,196)
Transfers from (to) other funds -- (279,939) (307,299) (363,969) (40,448)
-------------- ------------- -------------- ------------- ---------------
(6,928) (1,210,544) (810,454) (898,002) (126,998)
Net increase (decrease) 14,629 2,092,831 (519,232) 233,862 109,416
-------------- ------------- -------------- ------------- ---------------
Net assets available for plan benefits:
Beginning of year 55,493 11,102,905 6,148,638 5,144,165 1,016,543
-------------- ------------- -------------- ------------- ---------------
End of Year $ 70,122 13,195,736 5,629,406 5,378,027 1,125,959
============== ============= ============== ============= ===============
<CAPTION>
December 31, 1998
---------------------------------------------------------------
American American Salomon
Odyssey Odyssey In-Time Investment
Intermediate Term Short-Term Investing Contract
Bond Fund Bond Fund Fund Fund
--------------- --------------- -------------- -------------
<S> <C> <C> <C> <C>
Assets
Investments, at value (notes 2 and 3) 675,650 -- 1,451,617 77,681,213
Cash -- -- -- --
Receivables:
Contributions 14,542 -- 2,001 --
Receivable for investments sold -- -- -- --
Dividends and other -- -- -- 423,454
--------------- --------------- -------------- -------------
Total receivables 14,542 -- 2,001 423,454
--------------- --------------- -------------- -------------
Total assets 690,192 -- 1,453,618 78,104,667
--------------- --------------- -------------- -------------
Liabilities & Plan Equity
Payable for investments purchased -- -- -- --
--------------- --------------- -------------- -------------
Total Liabilities -- -- -- --
Net assets available for plan benefits 690,192 -- 1,453,618 78,104,667
=============== =============== ============== =============
Investment activity:
Dividends -- -- 226,469 --
Interest -- -- -- 4,949,860
Net Appreciation (depreciation) in
fair value of investments 145,003 (111,499) -- --
--------------- --------------- -------------- -------------
145,003 (111,499) 226,469 4,949,860
Less: Trustee/administrative expenses -- -- -- (513,613)
--------------- --------------- -------------- -------------
Net investment income (loss) 145,003 (111,499) 226,469 4,436,247
--------------- --------------- -------------- -------------
Contributions:
Participant 79,246 -- 135,435 2,258,725
Employer -- -- -- --
--------------- --------------- -------------- -------------
Total contributions 79,246 -- 135,435 2,258,725
--------------- --------------- -------------- -------------
Distributions to participants (48,548) -- (22,607) (13,959,158)
Loan activity, net (6,530) -- (571) 251,631
Transfers from (to) other funds (116,322) -- 32,828 8,448,035
--------------- --------------- -------------- -------------
(171,400) -- 9,650 (5,259,492)
Net increase (decrease) 52,849 (111,499) 371,554 1,435,480
--------------- --------------- -------------- -------------
Net assets available for plan benefits:
Beginning of year 637,343 111,499 1,082,064 76,669,187
--------------- --------------- -------------- -------------
End of Year 690,192 -- 1,453,618 78,104,667
=============== =============== ============== =============
</TABLE>
19
<PAGE>
Travelers Group Inc. 401(k) Savings Plan
Notes to Financial Statements
8 Investment Allocation (Continued)
<TABLE>
<CAPTION>
December 31, 1998
---------------------------------------------------------------------------------
Salomon
Institutional Fischer Francis Bankers Trust
Money Market Intermediate Salomon Brothers Index Equity Europacific
Fund Bond Fund Capital Fund Fund Fund
------------- ---------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
Assets
Investments, at value (notes 2 and 3) $ 64,431,648 6,747,383 101,793,697 169,372,847 69,130,982
Cash 5,284 48,308,632 1,570,625 1,931,421 1,707,569
Receivables:
Contributions -- -- -- -- 2,034,966
Receivable for investments sold -- -- -- -- --
Dividends and other 27 67,404 1,324 2,186 1,486
------------- ---------------- -------------- -------------- -------------
Total receivables 27 67,404 1,324 2,186 2,036,452
------------- ---------------- -------------- -------------- -------------
Total assets 64,436,959 55,123,419 103,365,646 171,306,454 72,875,003
------------- ---------------- -------------- -------------- -------------
Liabilities & Plan Equity
Payable for investments purchased -- 6,018,750 -- -- --
------------- ---------------- -------------- -------------- -------------
Total Liabilities -- 6,018,750 -- -- --
Net assets available for plan benefits $ 64,436,959 49,104,669 103,365,646 171,306,454 72,875,003
============= ================ ============== ============== =============
Investment activity:
Dividends 3,808,072 -- 5,318,843 -- 2,220,113
Interest 3,626 3,434,349 47,131 58,568 30,645
Net Appreciation (depreciation) in
fair value of investments -- (98,514) 16,256,885 38,178,001 8,169,132
------------- ---------------- -------------- -------------- -------------
3,811,698 3,335,835 21,622,859 38,236,569 10,419,890
Less: Trustee/administrative expenses (30,007) (203,168) (44,805) (156,113) (32,960)
------------- ---------------- -------------- -------------- -------------
Net investment income (loss) 3,781,691 3,132,667 21,578,054 38,080,456 10,386,930
------------- ---------------- -------------- -------------- -------------
Contributions:
Participant 2,014,497 758,177 2,152,178 4,690,871 2,855,192
Employer -- -- -- -- --
------------- ---------------- -------------- -------------- -------------
Total contributions 2,014,497 758,177 2,152,178 4,690,871 2,855,192
------------- ---------------- -------------- -------------- -------------
Distributions to participants (10,501,333) (8,443,122) (13,937,727) (16,435,103) (9,790,257)
Loan activity, net (158,988) 34,197 (30,838) 229,772 85,530
Transfers from (to) other funds (2,420,584) 1,064,603 (7,971,700) 1,345,870 (5,031,374)
------------- ---------------- -------------- -------------- -------------
(13,080,905) (7,344,322) (21,940,265) (14,859,461) (14,736,101)
Net increase (decrease) (7,284,717) (3,453,478) 1,789,967 27,911,866 (1,493,979)
------------- ---------------- -------------- -------------- -------------
Net assets available for plan benefits:
Beginning of year 71,721,676 52,558,147 101,575,679 143,394,588 74,368,982
------------- ---------------- -------------- -------------- -------------
End of Year $ 64,436,959 49,104,669 103,365,646 171,306,454 72,875,003
============= ================ ============== ============== =============
<CAPTION>
December 31, 1998
----------------------------------------------------------------
BGI SBAM Putnam OTC Templeton
US Tactical Asset Broad Market Emerging Developing
Allocation Fixed Income Growth Markets Trust
Fund Fund Fund Fund
--------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
Assets
Investments, at value (notes 2 and 3) 16,804,247 4,762,993 -- 14,773,604
Cash 357,220 1,493,016 38,404,117 285,752
Receivables:
Contributions -- -- -- 910,675
Receivable for investments sold -- -- -- --
Dividends and other 204 57,317 354 415
--------------- ------------- -------------- -------------
Total receivables 204 57,317 354 911,090
--------------- ------------- -------------- -------------
Total assets 17,161,671 6,313,326 38,404,471 15,970,446
--------------- ------------- -------------- -------------
Liabilities & Plan Equity
Payable for investments purchased -- -- -- --
--------------- ------------- -------------- -------------
Total Liabilities -- -- -- --
Net assets available for plan benefits 17,161,671 6,313,326 38,404,471 15,970,446
=============== ============= ============== =============
Investment activity:
Dividends -- 6,383 -- 377,782
Interest 11,749 339,236 16,941 9,201
Net Appreciation (depreciation) in
fair value of investments 3,958,112 83,266 3,660,073 (4,492,840)
--------------- ------------- -------------- -------------
3,969,861 428,885 3,677,014 (4,105,857)
Less: Trustee/administrative expenses (100,734) (3,463) (17,070) (8,225)
--------------- ------------- -------------- -------------
Net investment income (loss) 3,869,127 425,422 3,659,944 (4,114,082)
--------------- ------------- -------------- -------------
Contributions:
Participant 172,746 317,634 2,817,091 1,555,672
Employer -- -- -- --
--------------- ------------- -------------- -------------
Total contributions 172,746 317,634 2,817,091 1,555,672
--------------- ------------- -------------- -------------
Distributions to participants (3,313,017) (937,095) (4,719,188) (2,392,174)
Loan activity, net 28,409 20,534 88,503 48,741
Transfers from (to) other funds 1,009,814 1,205,581 (2,937,207) (1,629,868)
--------------- ------------- -------------- -------------
(2,274,794) 289,020 (7,567,892) (3,973,301)
Net increase (decrease) 1,767,079 1,032,076 (1,090,857) (6,531,711)
--------------- ------------- -------------- -------------
Net assets available for plan benefits:
Beginning of year 15,394,592 5,281,250 39,495,328 22,502,157
--------------- ------------- -------------- -------------
End of Year 17,161,671 6,313,326 38,404,471 15,970,446
=============== ============= ============== =============
</TABLE>
20
<PAGE>
Travelers Group Inc. 401(k) Savings Plan
Notes to Financial Statements
8 Investment Allocation (Continued)
<TABLE>
<CAPTION>
December 31, 1998
------------------------------------------------------------------
Fidelity Salomon
Blue Chip Brothers Smith Barney
Growth High Yield Stable Value Government
Fund Bond Fund Fund Securities Fund
---------------- --------------- --------------- -------------
<S> <C> <C> <C> <C>
Assets
Investments, at value (notes 2 and 3) $ -- 7,861,650 -- --
Cash 23,643,423 76,090 -- --
Receivables:
Contributions -- 447,281 5,314,449 1,185,773
Receivable for investments sold -- -- -- --
Dividends and other 499 424 -- --
---------------- --------------- --------------- -------------
Total receivables 499 447,705 5,314,449 1,185,773
---------------- --------------- --------------- -------------
Total assets 23,643,922 8,385,445 5,314,449 1,185,773
---------------- --------------- --------------- -------------
Liabilities & Plan Equity
Payable for investments purchased -- -- -- --
---------------- --------------- --------------- -------------
Total Liabilities -- -- -- --
Net assets available for plan benefits $ 23,643,922 8,385,445 5,314,449 1,185,773
================ =============== =============== =============
Investment activity:
Dividends 179,931 970,071 -- --
Interest 7,736 8,615 -- --
Net Appreciation (depreciation) in
fair value of investments 4,836,805 (1,626,570) -- --
---------------- --------------- --------------- -------------
5,024,472 (647,884) -- --
Less: Trustee/administrative expenses (6,472) (4,534) -- --
---------------- --------------- --------------- -------------
Net investment income (loss) 5,018,000 (652,418) -- --
---------------- --------------- --------------- -------------
Contributions:
Participant 1,845,874 765,748 -- --
Employer -- -- -- --
---------------- --------------- --------------- -------------
Total contributions 1,845,874 765,748 -- --
---------------- --------------- --------------- -------------
Distributions to participants (2,378,010) (2,477,277) -- --
Loan activity, net 19,483 6,412 -- --
Transfers from (to) other funds 7,381,766 (535,447) 5,314,449 1,185,773
---------------- --------------- --------------- -------------
5,023,239 (3,006,312) 5,314,449 1,185,773
Net increase (decrease) 11,887,113 (2,892,982) 5,314,449 1,185,773
---------------- --------------- --------------- -------------
Net assets available for plan benefits:
Beginning of year 11,756,809 11,278,427 -- --
---------------- --------------- --------------- -------------
End of Year $ 23,643,922 8,385,445 5,314,449 1,185,773
================ =============== =============== =============
<CAPTION>
December 31, 1998
-----------------------------------------------------------------
Smith Barney Salomon Bros.
Large Capital Investors Loan
Growth Fund Fund Fund Total
------------ ------------- --------------- ---------------
<S> <C> <C> <C> <C>
Assets
Investments, at value (notes 2 and 3) -- -- 94,177,654 4,660,419,982
Cash -- -- -- 124,133,706
Receivables:
Contributions 1,548,052 22,210 -- 30,755,433
Receivable for investments sold -- -- -- 21,950,421
Dividends and other -- -- -- 1,405,120
------------ ------------- --------------- ---------------
Total receivables 1,548,052 22,210 -- 54,110,974
------------ ------------- --------------- ---------------
Total assets 1,548,052 22,210 94,177,654 4,838,664,662
------------ ------------- --------------- ---------------
Liabilities & Plan Equity
Payable for investments purchased -- -- -- 8,996,543
------------ ------------- --------------- ---------------
Total Liabilities -- -- -- 8,996,543
Net assets available for plan benefits 1,548,052 22,210 94,177,654 4,829,668,119
============ ============= =============== ===============
Investment activity:
Dividends -- -- -- 94,873,644
Interest -- -- -- 50,528,698
Net Appreciation (depreciation) in
fair value of investments -- -- -- 81,473,746
------------ ------------- --------------- ---------------
-- -- -- 226,876,088
Less: Trustee/administrative expenses -- -- -- (3,835,066)
------------ ------------- --------------- ---------------
Net investment income (loss) -- -- -- 223,041,022
------------ ------------- --------------- ---------------
Contributions:
Participant -- 22,210 5,295,490 281,814,742
Employer -- -- -- 5,137,065
------------ ------------- --------------- ---------------
Total contributions -- 22,210 5,295,490 286,951,807
------------ ------------- --------------- ---------------
Distributions to participants -- -- (3,530,285) (377,745,190)
Loan activity, net -- -- 5,476,185 --
Transfers from (to) other funds 1,548,052 -- -- --
------------ ------------- --------------- ---------------
1,548,052 -- 1,945,900 (377,745,190)
Net increase (decrease) 1,548,052 22,210 7,241,390 132,247,639
------------ ------------- --------------- ---------------
Net assets available for plan benefits:
Beginning of year -- -- 86,936,264 4,697,420,480
------------ ------------- --------------- ---------------
End of Year 1,548,052 22,210 94,177,654 4,829,668,119
============ ============= =============== ===============
</TABLE>
21
<PAGE>
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
8 Investment Allocation (Continued)
<TABLE>
<CAPTION>
December 31, 1997
------------------------------------------------------------------------------------
Van Kampen Van Kampen Van Kampen Van Kampen
Travelers American Capital American Capital American Capital American Capital
Common Stock Emerging Government Comstock Reserve
Fund Growth Fund Securities Fund Fund Fund
--------------- -------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Assets
Investments, at value (notes 2 and 3) $ 1,661,311,551 148,374,110 4,666,556 14,890,615 10,514,136
Cash 1,970,467 1,175 3 3 16
Receivables:
Contributions 484,888 20,290 631 18,846 514
Receivable for investments sold -- -- -- -- --
Dividends and other 3,609,777 37 4 15 13
--------------- -------------- -------------- --------------- ---------------
Total receivables 4,094,665 20,327 635 18,861 527
--------------- -------------- -------------- --------------- ---------------
Total assets 1,667,376,683 148,395,612 4,667,194 14,909,479 10,514,679
--------------- -------------- -------------- --------------- ---------------
Liabilities
ESOP note payable -- -- -- -- --
Payable for investments purchased 1,590,067 -- -- -- --
--------------- -------------- -------------- --------------- ---------------
Total liabilities 1,590,067 -- -- -- --
Receivable from (payable to) other funds 4,021,002 -- -- -- --
--------------- -------------- -------------- --------------- ---------------
Net assets available for plan benefits $ 1,669,807,618 148,395,612 4,667,194 14,909,479 10,514,679
=============== ============== ============== =============== ===============
Investment activity:
Dividends 12,448,553 13,389,897 306,971 2,068,801 505,987
Interest 65,117 7,022 367 188,592 679
Appreciation (depreciation) in
fair value of investments 700,288,040 12,563,742 69,214 1,208,350 --
--------------- -------------- -------------- --------------- ---------------
712,801,710 25,960,661 376,552 3,465,743 506,666
Less: Trustee/administrative expenses (555,906) (93,400) (8,019) (16,880) (14,981)
--------------- -------------- -------------- --------------- ---------------
Net investment income (loss) 712,245,804 25,867,261 368,533 3,448,863 491,685
--------------- -------------- -------------- --------------- ---------------
Contributions:
Participant 64,532,708 18,973,018 551,452 1,245,903 594,427
Employer -- (813) -- -- --
--------------- -------------- -------------- --------------- ---------------
Total contributions 64,532,708 18,972,205 551,452 1,245,903 594,427
--------------- -------------- -------------- --------------- ---------------
Distributions to participants (73,673,547) (6,901,403) (287,751) (863,271) (1,114,189)
Loan activity, net (6,428,158) (453,956) (51,508) (63,107) (148,505)
Transfers from (to) other funds 48,655,133 (4,987,034) (713,817) (401,924) (603,043)
--------------- -------------- -------------- --------------- ---------------
Net increase (decrease) 745,331,940 32,497,073 (133,091) 3,366,464 (779,625)
--------------- -------------- -------------- --------------- ---------------
Net assets available for plan benefits:
Beginning of year 888,648,289 115,898,539 4,800,285 11,543,015 11,294,304
Transfers from (to) other plans (note 1) 35,827,389 -- -- -- --
--------------- -------------- -------------- --------------- ---------------
End of year $ 1,669,807,618 148,395,612 4,667,194 14,909,479 10,514,679
=============== ============== ============== =============== ===============
<CAPTION>
December 31, 1997
-----------------------------------------------------------------------------
Concert
Common Common Common Common Allocation
Sense Sense Sense Sense Series
Growth Growth & Income Government Money Market High Growth
Fund Fund Fund Fund Portfolio
------------- --------------- ------------ ------------- --------------
<S> <C> <C> <C> <C> <C>
Assets
Investments, at value (notes 2 and 3) 5,139,348 4,696,405 601,480 2,436,540 2,784,406
Cash 23 17 15 27 27
Receivables:
Contributions 213 805 -- -- 18,680
Receivable for investments sold -- -- -- -- 65,247
Dividends and other 4 1 -- 3 --
------------- --------------- ------------ ------------- --------------
Total receivables 217 806 -- 3 83,927
------------- --------------- ------------ ------------- --------------
Total assets 5,139,588 4,697,228 601,495 2,436,570 2,868,360
------------- --------------- ------------ ------------- --------------
Liabilities
Payable for investments purchased -- -- -- -- 345
------------- --------------- ------------ ------------- --------------
Total liabilities -- -- -- -- 345
Receivable from (payable to) other funds -- -- -- -- --
------------- --------------- ------------ ------------- --------------
Net assets available for plan benefits 5,139,588 4,697,228 601,495 2,436,570 2,868,015
============= =============== ============ ============= ==============
Investment activity:
Dividends 1,211,263 1,265,201 47,735 114,444 31,755
Interest 189 191 84 183 62
Appreciation (depreciation) in
fair value of investments 299,151 137,364 13,100 -- (5,969)
------------- --------------- ------------ ------------- --------------
1,510,603 1,402,756 60,919 114,627 25,848
Less: Trustee/administrative expenses (8,003) (7,577) (3,796) (5,667) (2,308)
------------- --------------- ------------ ------------- --------------
Net investment income (loss) 1,502,600 1,395,179 57,123 108,960 23,540
------------- --------------- ------------ ------------- --------------
Contributions:
Participant 359,988 299,759 52,023 116,684 1,176,997
Employer -- -- -- (838) --
------------- --------------- ------------ ------------- --------------
Total contributions 359,988 299,759 52,023 115,846 1,176,997
------------- --------------- ------------ ------------- --------------
Distributions to participants (555,189) (192,448) (20,514) (262,076) (17,092)
Loan activity, net (24,500) (37,195) (13,242) (30,668) (55,316)
Transfers from (to) other funds (236,751) (229,554) (322,278) 80,122 1,739,886
------------- --------------- ------------ ------------- --------------
Net increase (decrease) 1,046,148 1,235,741 (246,888) 12,184 2,868,015
------------- --------------- ------------ ------------- --------------
Net assets available for plan benefits:
Beginning of year 4,093,440 3,461,487 848,383 2,424,386 --
Transfers from (to) other plans (note 1) -- -- -- -- --
------------- --------------- ------------ ------------- --------------
End of year 5,139,588 4,697,228 601,495 2,436,570 2,868,015
============= =============== ============ ============= ==============
</TABLE>
22
<PAGE>
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
8 Investment Allocation (Continued)
<TABLE>
<CAPTION>
December 31, 1997
---------------------------------------------------------------------
Concert Concert Concert Concert
Allocation Allocation Allocation Allocation
Series Series Series Series
Growth Balanced Conservative Income
Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Assets
Investments, at value (notes 2 and 3) $ 2,711,780 2,629,801 594,928 602,848
Cash 19 49 35 109
Receivables:
Contributions 25,020 34,826 2,062 748
Receivable for investments sold 38,999 190,346 16,529 45,851
Dividends and other -- -- -- --
------------ ------------ ------------ ------------
Total receivables 64,019 225,172 18,591 46,599
------------ ------------ ------------ ------------
Total assets 2,775,818 2,855,022 613,554 649,556
------------ ------------ ------------ ------------
Liabilities
Forfeiture credits due to employer -- -- -- --
ESOP note payable -- -- -- --
Payable for investments purchased 353 337 256 216
------------ ------------ ------------ ------------
Total liabilities 353 337 256 216
Receivable from (payable to) other funds -- -- -- --
------------ ------------ ------------ ------------
Net assets available for plan benefits $ 2,775,465 2,854,685 613,298 649,340
============ ============ ============ ============
Investment activity:
Dividends 39,855 35,523 15,924 23,685
Interest 35 35 50 12
Appreciation (depreciation) in
fair value of investments 53,510 35,836 18,663 8,570
------------ ------------ ------------ ------------
93,400 71,394 34,637 32,267
Less: Trustee/administrative expenses (2,214) (2,209) (2,067) (2,167)
------------ ------------ ------------ ------------
Net investment income (loss) 91,186 69,185 32,570 30,100
------------ ------------ ------------ ------------
Contributions:
Participant 992,599 689,672 240,892 137,279
Employer -- -- -- --
------------ ------------ ------------ ------------
Total contributions 992,599 689,672 240,892 137,279
------------ ------------ ------------ ------------
Distributions to participants (12,484) 17,922 (104,016) (2,694)
Loan activity, net (20,760) (53,005) (19,651) (2,134)
Transfers from (to) other funds 1,724,924 2,130,911 463,503 486,789
------------ ------------ ------------ ------------
Net increase (decrease) 2,775,465 2,854,685 613,298 649,340
------------ ------------ ------------ ------------
Net assets available for plan benefits:
Beginning of year -- -- -- --
Transfers from (to) other plans (note 1) -- -- -- --
------------ ------------ ------------ ------------
End of year $ 2,775,465 2,854,685 613,298 649,340
============ ============ ============ ============
<CAPTION>
December 31, 1997
---------------------------------------------------------------------
Smith Barney Smith Barney Van Kampen American
U.S. Government Income American Capital Express
Securities Return Enterprise Common
Fund Fund Fund Stock Fund
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Assets
Investments, at value (notes 2 and 3) 22,818,510 -- 61,770,464 131,792,887
Cash 692 -- 1,081 10,855
Receivables:
Contributions 115,791 -- 13,379 --
Receivable for investments sold -- -- 16 --
Dividends and other 5 -- -- 336,968
------------ ------------ ------------ ------------
Total receivables 115,796 -- 13,395 336,968
------------ ------------ ------------ ------------
Total assets 22,934,998 -- 61,784,940 132,140,710
------------ ------------ ------------ ------------
Liabilities
Forfeiture credits due to employer -- -- -- --
ESOP note payable -- -- -- --
Payable for investments purchased -- -- -- --
------------ ------------ ------------ ------------
Total liabilities -- -- -- --
Receivable from (payable to) other funds -- -- -- --
------------ ------------ ------------ ------------
Net assets available for plan benefits 22,934,998 -- 61,784,940 132,140,710
============ ============ ============ ============
Investment activity:
Dividends 1,373,353 -- 6,100,144 1,382,436
Interest 731 -- 1,104 1,645
Appreciation (depreciation) in
fair value of investments 577,128 -- 6,579,603 50,726,202
------------ ------------ ------------ ------------
1,951,212 -- 12,680,851 52,110,283
Less: Trustee/administrative expenses (17,530) -- (35,413) (85,580)
------------ ------------ ------------ ------------
Net investment income (loss) 1,933,682 -- 12,645,438 52,024,703
------------ ------------ ------------ ------------
Contributions:
Participant 1,745,837 -- 6,863,798 --
Employer (213) -- -- --
------------ ------------ ------------ ------------
Total contributions 1,745,624 -- 6,863,798 --
------------ ------------ ------------ ------------
Distributions to participants (1,728,466) (59,771) (2,491,488) (6,226,279)
Loan activity, net (22,597) (3,237) (60,852) (767,295)
Transfers from (to) other funds 917,627 (3,541,549) 4,481,598 (7,457,558)
------------ ------------ ------------ ------------
Net increase (decrease) 2,845,870 (3,604,557) 21,438,494 37,573,571
------------ ------------ ------------ ------------
Net assets available for plan benefits:
Beginning of year 20,089,128 3,604,557 40,346,446 94,567,139
Transfers from (to) other plans (note 1) -- -- -- --
------------ ------------ ------------ ------------
End of year 22,934,998 -- 61,784,940 132,140,710
============ ============ ============ ============
<CAPTION>
December 31, 1997
--------------------------------------------------
Smith Barney
Smith Barney Aggressive Smith Barney
Money Growth Appreciation
Fund Fund Fund
------------ ------------ ------------
<S> <C> <C> <C>
Assets
Investments, at value (notes 2 and 3) 51,341,355 44,989,795 193,899,159
Cash 880 845 811
Receivables:
Contributions (771) (11) 4,574
Receivable for investments sold -- -- --
Dividends and other 8 12 25
------------ ------------ ------------
Total receivables (763) 1 4,599
------------ ------------ ------------
Total assets 51,341,472 44,990,641 193,904,569
------------ ------------ ------------
Liabilities
Forfeiture credits due to employer -- -- --
ESOP note payable -- -- --
Payable for investments purchased -- -- --
------------ ------------ ------------
Total liabilities -- -- --
Receivable from (payable to) other funds -- -- --
------------ ------------ ------------
Net assets available for plan benefits 51,341,472 44,990,641 193,904,569
============ ============ ============
Investment activity:
Dividends 2,547,495 2,061,244 28,529,882
Interest 2,021 865 3,106
Appreciation (depreciation) in
fair value of investments -- 7,379,703 12,876,724
------------ ------------ ------------
2,549,516 9,441,812 41,409,712
Less: Trustee/administrative expenses (36,006) (28,488) (109,404)
------------ ------------ ------------
Net investment income (loss) 2,513,510 9,413,324 41,300,308
------------ ------------ ------------
Contributions:
Participant 3,877,387 4,090,227 13,616,193
Employer (263) (2,022) --
------------ ------------ ------------
Total contributions 3,877,124 4,088,205 13,616,193
------------ ------------ ------------
Distributions to participants (4,987,968) (2,309,801) (8,747,512)
Loan activity, net (799,410) (414,170) (898,399)
Transfers from (to) other funds 13,679,081 1,182,948 (5,033,256)
------------ ------------ ------------
Net increase (decrease) 14,282,337 11,960,506 40,237,334
------------ ------------ ------------
Net assets available for plan benefits:
Beginning of year 37,059,135 33,030,135 153,667,235
Transfers from (to) other plans (note 1) -- -- --
------------ ------------ ------------
End of year 51,341,472 44,990,641 193,904,569
============ ============ ============
</TABLE>
23
<PAGE>
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
8 Investment Allocation (Continued)
<TABLE>
<CAPTION>
December 31, 1997
--------------------------------------------------------------------------
Smith Barney Smith Barney Smith Barney
International Diversified Smith Barney Guaranteed
Equity Strategic High Smith Barney Income
Fund Income Fund Income Fund Utilities Fund Fund
-------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Assets
Investments, at value (notes 2 and 3) $ 120,881,658 20,380,833 -- 11,394,421 149,626,246
Cash 744 799 -- 803 263,184
Receivables:
Contributions 3,271 128 -- 488 (93)
Receivable for investments sold -- -- -- -- --
Dividends and other 23 6 -- 5 194
-------------- ------------ ------------ ------------ ------------
Total receivables 3,294 134 -- 493 101
-------------- ------------ ------------ ------------ ------------
Total assets 120,885,696 20,381,766 -- 11,395,717 149,889,531
-------------- ------------ ------------ ------------ ------------
Liabilities
ESOP note payable -- -- -- -- --
Payable for investments purchased -- -- -- -- --
-------------- ------------ ------------ ------------ ------------
Total liabilities -- -- -- -- --
Receivable from (payable to) other funds -- -- -- -- --
-------------- ------------ ------------ ------------ ------------
Net assets available for plan benefits $ 120,885,696 20,381,766 -- 11,395,717 149,889,531
============== ============ ============ ============ ============
Investment activity:
Dividends $ 362,310 1,701,404 -- 1,149,813 --
Interest 3,712 467 -- 520 10,292,279
Appreciation (depreciation) in
fair value of investments 3,225,678 (185,354) -- 1,161,265 --
-------------- ------------ ------------ ------------ ------------
3,591,700 1,516,517 -- 2,311,598 10,292,279
Less: Trustee/administrative expenses (86,467) (17,017) -- (13,449) (531,442)
-------------- ------------ ------------ ------------ ------------
Net investment income (loss) 3,505,233 1,499,500 -- 2,298,149 9,760,837
-------------- ------------ ------------ ------------ ------------
Contributions:
Participant 16,581,148 2,374,561 -- 1,466,704 8,376,840
Employer -- -- -- -- 101,339
-------------- ------------ ------------ ------------ ------------
Total contributions 16,581,148 2,374,561 -- 1,466,704 8,478,179
-------------- ------------ ------------ ------------ ------------
Distributions to participants (7,116,110) (1,169,518) (81,228) (843,700) (9,476,079)
Loan activity, net 29,435 9,410 (11,484) (117,104) (735,885)
Transfers from (to) other funds (15,876,801) 224,511 (4,506,862) (5,116,608) (5,132,178)
-------------- ------------ ------------ ------------ ------------
Net increase (decrease) (2,877,095) 2,938,464 (4,599,574) (2,312,559) 2,894,874
-------------- ------------ ------------ ------------ ------------
Net assets available for plan benefits:
Beginning of year 123,762,791 17,443,302 4,599,574 13,708,276 146,994,657
Transfers from (to) other plans (note 1) -- -- -- -- --
-------------- ------------ ------------ ------------ ------------
End of year $ 120,885,696 20,381,766 -- 11,395,717 149,889,531
============== ============ ============ ============ ============
<CAPTION>
December 31, 1997
------------------------------------------------------------------------------------
Smith Barney Smith Barney Smith Barney Deferred
Equity Special Managed Profit Fixed Fixed
Income Equities Growth Sharing Savings IRA
Fund Fund Fund Plan Fund Fund
----------- ------------ ------------ ----------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Assets
Investments, at value (notes 2 and 3) 144,030,836 14,341,800 29,569,359 63,194 406,088,810 58,127,388
Cash 834 813 827 -- -- --
Receivables:
Contributions 3,073 4,836 6,422 -- (589) --
Receivable for investments sold -- -- -- -- 747,874 --
Dividends and other 19 6 8 -- -- --
----------- ------------ ------------ ----------- ------------ -------------
Total receivables 3,092 4,842 6,430 -- 747,285 --
----------- ------------ ------------ ----------- ------------ -------------
Total assets 144,034,762 14,347,455 29,576,616 63,194 406,836,095 58,127,388
----------- ------------ ------------ ----------- ------------ -------------
Liabilities
ESOP note payable -- -- -- -- -- --
Payable for investments purchased -- -- -- -- 46,344 --
----------- ------------ ------------ ----------- ------------ -------------
Total liabilities -- -- -- -- 46,344 --
Receivable from (payable to) other funds -- -- -- -- -- --
----------- ------------ ------------ ----------- ------------ -------------
Net assets available for plan benefits 144,034,762 14,347,455 29,576,616 63,194 406,789,751 58,127,388
=========== ============ ============ =========== ============ =============
Investment activity:
Dividends 14,387,143 -- 2,099,910 3,456 -- --
Interest 2,245 667 835 -- 27,757,495 3,827,738
Appreciation (depreciation) in
fair value of investments 17,820,282 (750,743) 1,379,554 -- -- --
----------- ------------ ------------ ----------- ------------ -------------
32,209,670 (750,076) 3,480,299 3,456 27,757,495 3,827,738
Less: Trustee/administrative expenses (82,029) (13,818) (20,925) -- -- --
----------- ------------ ------------ ----------- ------------ -------------
Net investment income (loss) 32,127,641 (763,894) 3,459,374 3,456 27,757,495 3,827,738
----------- ------------ ------------ ----------- ------------ -------------
Contributions:
Participant 7,983,112 3,147,636 3,846,729 -- 23,897,144 --
Employer (440) -- -- -- -- --
----------- ------------ ------------ ----------- ------------ -------------
Total contributions 7,982,672 3,147,636 3,846,729 -- 23,897,144 --
----------- ------------ ------------ ----------- ------------ -------------
Distributions to participants (6,097,680) (685,844) (1,431,638) (10,000) (36,226,164) (7,660,010)
Loan activity, net (257,322) 229,618 108,232 -- (365,070) --
Transfers from (to) other funds (3,321,710) (270,038) 1,295,790 -- (4,890,814) --
----------- ------------ ------------ ----------- ------------ -------------
Net increase (decrease) 30,433,601 1,657,478 7,278,487 (6,544) 10,172,591 (3,832,272)
----------- ------------ ------------ ----------- ------------ -------------
Net assets available for plan benefits:
Beginning of year 113,601,161 12,689,977 22,298,129 69,738 396,617,160 61,959,660
Transfers from (to) other plans (note 1) -- -- -- -- -- --
----------- ------------ ------------ ----------- ------------ -------------
End of year 144,034,762 14,347,455 29,576,616 63,194 406,789,751 58,127,388
=========== ============ ============ =========== ============ =============
</TABLE>
24
<PAGE>
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
8 Investment Allocation (Continued)
<TABLE>
<CAPTION>
December 31, 1997
----------------------------------------------------------------------------------
S & P 500 Russell TAP Guarantee
Flagship 2000 ESOP Stable Common Stock Annuity
Fund Fund Fund Fund Fund Contracts
------------ ------------ ------------ ---------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
Assets
Investments, at value (notes 2 and 3) $118,520,465 64,058,436 379,039,600 17,039,728 66,506,184 8,988,512
Cash 2,665 1,755 9,479,216 -- 36,455 --
Receivables:
Contributions 41,604 7,768 -- 20,879 3,675 --
Receivable for investments sold 90,744 273,523 -- -- -- --
Dividends and other -- -- 1,570 -- -- --
------------ ------------ ------------ ---------- ------------ -----------
Total receivables 132,348 281,291 1,570 20,879 3,675 --
------------ ------------ ------------ ---------- ------------ -----------
Total assets 118,655,478 64,341,482 388,520,386 17,060,607 66,546,314 8,988,512
------------ ------------ ------------ ---------- ------------ -----------
Liabilities
ESOP note payable -- -- 17,450,000 -- -- --
Payable for investments purchased 7,000 3,852 1,606,231 264,002 2,723,606 --
------------ ------------ ------------ ---------- ------------ -----------
Total liabilities 7,000 3,852 19,056,231 264,002 2,723,606 --
Receivable from (payable to) other funds -- -- (16,388,816) -- -- --
------------ ------------ ------------ ---------- ------------ -----------
Net assets available for plan benefits $118,648,478 64,337,630 353,075,339 16,796,605 63,822,708 8,988,512
============ ============ ============ ========== ============ ===========
Investment activity:
Dividends $ -- -- 12,141,458 -- 528,964 --
Interest -- -- -- 1,064,285 -- 216,768
Appreciation (depreciation) in
fair value of investments 28,102,738 11,600,629 145,416,891 -- 14,185,634 --
------------ ------------ ------------ ---------- ------------ -----------
28,102,738 11,600,629 157,558,349 1,064,285 14,714,598 216,768
Less: Trustee/administrative expenses -- -- -- -- -- --
------------ ------------ ------------ ---------- ------------ -----------
Net investment income (loss) 28,102,738 11,600,629 157,558,349 1,064,285 14,714,598 216,768
------------ ------------ ------------ ---------- ------------ -----------
Contributions:
Participant 11,852,078 7,337,446 2,520,471 2,628,247 817,896 385,295
Employer -- -- -- -- -- --
------------ ------------ ------------ ---------- ------------ -----------
Total contributions 11,852,078 7,337,446 2,520,471 2,628,247 817,896 385,295
------------ ------------ ------------ ---------- ------------ -----------
Distributions to participants (6,496,528) (3,354,259) (14,734,677) (1,798,452) (2,335,777) (775,774)
Loan activity, net (869,112) (521,732) (32,709) (792,238) (1,163,693) (10,480)
Transfers from (to) other funds 6,244,149 3,136,952 (3,819,711) (2,747,575) (15,665,597) (738,399)
------------ ------------ ------------ ---------- ------------ -----------
Net increase (decrease) 38,833,325 18,199,036 141,491,723 (1,645,733) (3,632,573) (922,590)
------------ ------------ ------------ ---------- ------------ -----------
Net assets available for plan benefits:
Beginning of year 79,815,153 46,138,594 211,583,616 18,442,338 67,455,281 9,911,102
Transfers from (to) other plans (note 1) -- -- -- -- -- --
------------ ------------ ------------ ---------- ------------ -----------
End of year $118,648,478 64,337,630 353,075,339 16,796,605 63,822,708 8,988,512
============ ============ ============ ========== ============ ===========
<CAPTION>
December 31, 1997
----------------------------------------------------------------------------------
American American
American Odyssey Odyssey American American
Universal Odyssey Emerging International Odyssey Odyssey
Life Core Opportunities Equity Long-Term Intermediate-Term
Insurance Equity Fund Fund Fund Bond Fund Bond Fund
----------- ------------ ---------- ----------- ---------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Assets
Investments, at value (notes 2 and 3) 55,493 11,102,905 6,148,638 5,144,165 1,016,543 637,343
Cash -- -- -- -- -- --
Receivables:
Contributions -- -- -- -- -- --
Receivable for investments sold -- -- -- -- -- --
Dividends and other -- -- -- -- -- --
----------- ------------ ---------- ----------- ---------- ---------------
Total receivables -- -- -- -- -- --
----------- ------------ ---------- ----------- ---------- ---------------
Total assets 55,493 11,102,905 6,148,638 5,144,165 1,016,543 637,343
----------- ------------ ---------- ----------- ---------- ---------------
Liabilities
ESOP note payable -- -- -- -- -- --
Payable for investments purchased -- -- -- -- -- --
----------- ------------ ---------- ----------- ---------- ---------------
Total liabilities -- -- -- -- -- --
Receivable from (payable to) other funds -- -- -- -- -- --
----------- ------------ ---------- ----------- ---------- ---------------
Net assets available for plan benefits 55,493 11,102,905 6,148,638 5,144,165 1,016,543 637,343
=========== ============ ========== =========== ========== ===============
Investment activity:
Dividends -- 2,537,288 373,931 264,114 -- --
Interest 2,613 -- -- -- 91,872 39,169
Appreciation (depreciation) in
fair value of investments (5,619) -- -- -- -- --
----------- ------------ ---------- ----------- ---------- ---------------
(3,006) 2,537,288 373,931 264,114 91,872 39,169
Less: Trustee/administrative expenses -- (1,149) (675) -- -- --
----------- ------------ ---------- ----------- ---------- ---------------
Net investment income (loss) (3,006) 2,536,139 373,256 264,114 91,872 39,169
----------- ------------ ---------- ----------- ---------- ---------------
Contributions:
Participant 23,099 1,168,022 953,574 667,567 114,974 55,183
Employer -- -- -- -- -- --
----------- ------------ ---------- ----------- ---------- ---------------
Total contributions 23,099 1,168,022 953,574 667,567 114,974 55,183
----------- ------------ ---------- ----------- ---------- ---------------
Distributions to participants (6,620) (569,211) (400,648) (316,378) (64,260) (24,580)
Loan activity, net -- (40,816) (16,666) (9,654) (6,047) (593)
Transfers from (to) other funds -- 136,059 (382,469) 58,640 (201,948) (57,605)
----------- ------------ ---------- ----------- ---------- ---------------
Net increase (decrease) 13,473 3,230,193 527,047 664,289 (65,409) 11,574
----------- ------------ ---------- ----------- ---------- ---------------
Net assets available for plan benefits:
Beginning of year 42,020 7,872,712 5,621,591 4,479,876 1,081,952 625,769
Transfers from (to) other plans (note 1) -- -- -- -- -- --
----------- ------------ ---------- ----------- ---------- ---------------
End of year 55,493 11,102,905 6,148,638 5,144,165 1,016,543 637,343
=========== ============ ========== =========== ========== ===============
</TABLE>
25
<PAGE>
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
8 Investment Allocation (Continued)
<TABLE>
<CAPTION>
December 31, 1997
-----------------------------------------------------------------------
American Salomon
American Odyssey Salomon Brothers Fisher Francis
Odyssey In - Time Investment Institutional Intermediate
Short-Term Investing Contract Money Bond
Bond Fund Fund Fund Market Fund Fund
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Assets
Investments, at value (notes 2 and 3) $ 111,499 1,082,064 73,808,224 68,906,636 43,101,392
Cash -- -- -- (1,046,623) 6,944,723
Receivables:
Contributions -- -- 1,343,728 1,794,197 1,019,050
Receivable for investments sold -- -- 476,471 955,018 727,835
Dividends and other -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Total receivables -- -- 1,820,199 2,749,215 1,746,885
------------ ------------ ------------ ------------ ------------
Total assets 111,499 1,082,064 75,628,423 70,609,228 51,793,000
------------ ------------ ------------ ------------ ------------
Liabilities
ESOP note payable -- -- -- -- --
Payable for investments purchased -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Total liabilities -- -- -- -- --
Receivable from (payable to) other funds -- -- 1,040,764 1,112,448 765,147
------------ ------------ ------------ ------------ ------------
Net assets available for plan benefits $ 111,499 1,082,064 76,669,187 71,721,676 52,558,147
============ ============ ============ ============ ============
Investment activity:
Dividends $ -- -- -- 334,124 --
Interest 24,365 198,495 411,095 260 291,741
Appreciation (depreciation) in
fair value of investments -- -- (298) (406) 119,281
------------ ------------ ------------ ------------ ------------
24,365 198,495 410,797 333,978 411,022
Less: Trustee/administrative expenses -- -- (6,180) (3) (12,733)
------------ ------------ ------------ ------------ ------------
Net investment income (loss) 24,365 198,495 404,617 333,975 398,289
------------ ------------ ------------ ------------ ------------
Contributions:
Participant 15,880 98,128 318,484 909,458 246,880
Employer -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Total contributions 15,880 98,128 318,484 909,458 246,880
------------ ------------ ------------ ------------ ------------
Distributions to participants (33,643) (15,890) (194,123) (1,598,123) (65,456)
Loan activity, net (1,140) (7,522) 22,518 8,826 3,563
Transfers from (to) other funds (240,876) 116,005 305,876 (1,052,723) 322,582
------------ ------------ ------------ ------------ ------------
Net increase (decrease) (235,414) 389,216 857,372 (1,398,587) 905,858
------------ ------------ ------------ ------------ ------------
Net assets available for plan benefits:
Beginning of year 346,913 692,848 -- -- --
Transfers from (to) other plans (note 1) -- -- 75,811,815 73,120,263 51,652,289
------------ ------------ ------------ ------------ ------------
End of year $ 111,499 1,082,064 76,669,187 71,721,676 52,558,147
============ ============ ============ ============ ============
<CAPTION>
December 31, 1997
-----------------------------------------------------------------------
Salomon Bankers Trust BGI SBAM
Brothers Index Europacific Tactical Asset Broad Market
Capital Equity Growth Allocation Fixed Income
Fund Fund Fund Fund Fund
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Assets
Investments, at value (notes 2 and 3) 96,571,938 137,211,432 69,993,825 13,885,715 3,935,125
Cash -- 1,102 9,670 91 683,926
Receivables:
Contributions 2,355,338 3,183,060 2,124,117 493,637 219,811
Receivable for investments sold 809,186 1,112,451 650,120 642,087 279,135
Dividends and other -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Total receivables 3,164,524 4,295,511 2,774,237 1,135,724 498,946
------------ ------------ ------------ ------------ ------------
Total assets 99,736,462 141,508,045 72,777,732 15,021,530 5,117,997
------------ ------------ ------------ ------------ ------------
Liabilities
ESOP note payable -- -- -- -- --
Payable for investments purchased -- 575,922 -- -- --
------------ ------------ ------------ ------------ ------------
Total liabilities -- 575,922 -- -- --
Receivable from (payable to) other funds 1,839,217 2,462,465 1,591,250 373,062 163,253
------------ ------------ ------------ ------------ ------------
Net assets available for plan benefits 101,575,679 143,394,588 74,368,982 15,394,592 5,281,250
============ ============ ============ ============ ============
Investment activity:
Dividends -- -- 3,675,375 70 25,491
Interest 461 649 197 -- --
Appreciation (depreciation) in
fair value of investments 738,253 2,319,536 (2,824,433) 256,148 11,422
------------ ------------ ------------ ------------ ------------
738,714 2,320,185 851,139 256,218 36,913
Less: Trustee/administrative expenses (12) (7,049) (9) (2) (98)
------------ ------------ ------------ ------------ ------------
Net investment income (loss) 738,702 2,313,136 851,130 256,216 36,815
------------ ------------ ------------ ------------ ------------
Contributions:
Participant 632,347 969,669 645,602 168,919 71,190
Employer -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Total contributions 632,347 969,669 645,602 168,919 71,190
------------ ------------ ------------ ------------ ------------
Distributions to participants (247,491) (301,246) (103,284) (35,894) (24,833)
Loan activity, net 26,981 27,158 22,853 5,639 1,518
Transfers from (to) other funds 62,765 1,079,597 (1,429,790) 634,968 221,369
------------ ------------ ------------ ------------ ------------
Net increase (decrease) 1,213,304 4,088,314 (13,489) 1,029,848 306,059
------------ ------------ ------------ ------------ ------------
Net assets available for plan benefits:
Beginning of year -- -- -- -- --
Transfers from (to) other plans (note 1) 100,362,375 139,306,274 74,382,471 14,364,744 4,975,191
------------ ------------ ------------ ------------ ------------
End of year 101,575,679 143,394,588 74,368,982 15,394,592 5,281,250
============ ============ ============ ============ ============
</TABLE>
26
<PAGE>
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
8 Investment Allocation (Continued)
<TABLE>
<CAPTION>
December 31, 1997
---------------------------------------------------------
Putnam OTC & Templeton Fidelity Salomon Brothers
Emerging Developing Blue Chip High Yield
Growth Markets Growth Bond
Fund Trust Fund Fund
------------ ------------ ------------ -------------
<S> <C> <C> <C> <C>
Assets
Investments, at value (notes 2 and 3) 36,305,689 20,370,381 10,573,734 10,455,154
Cash 172 (7,680) -- 97
Receivables:
Contributions 1,748,077 1,059,869 582,856 438,012
Receivable for investments sold 98,520 226,621 92,478 68,533
Dividends and other -- -- -- --
------------ ------------ ------------ -------------
Total receivables 1,846,597 1,286,490 675,334 506,545
------------ ------------ ------------ -------------
Total assets 38,152,458 21,649,191 11,249,068 10,961,796
------------ ------------ ------------ -------------
Liabilities
ESOP note payable -- -- -- --
Payable for investments purchased -- -- -- --
------------ ------------ ------------ -------------
Total liabilities -- -- -- --
Receivable from (payable to) other funds 1,342,870 852,966 507,741 316,631
------------ ------------ ------------ -------------
Net assets available for plan benefits 39,495,328 22,502,157 11,756,809 11,278,427
============ ============ ============ =============
Investment activity:
Dividends 129 1,362,059 177,765 168,603
Interest -- 263 -- 22
Appreciation (depreciation) in
fair value of investments 679,033 (1,532,538) (39,049) (52,154)
------------ ------------ ------------ -------------
679,162 (170,216) 138,716 116,471
Less: Trustee/administrative expenses (3) (7) -- (1)
------------ ------------ ------------ -------------
Net investment income (loss) 679,159 (170,223) 138,716 116,470
------------ ------------ ------------ -------------
Contributions:
Participant 647,544 382,314 325,503 184,897
Employer -- -- -- --
------------ ------------ ------------ -------------
Total contributions 647,544 382,314 325,503 184,897
------------ ------------ ------------ -------------
Distributions to participants (68,288) (73,485) (7,187) (9,179)
Loan activity, net 37,028 8,196 748 18,367
Transfers from (to) other funds (508,344) (606,839) 382,709 329,157
------------ ------------ ------------ -------------
Net increase (decrease) 787,099 (460,037) 840,489 639,712
------------ ------------ ------------ -------------
Net assets available for plan benefits:
Beginning of year -- -- -- --
Transfers from (to) other plans (note 1) 38,708,229 22,962,194 10,916,320 10,638,715
------------ ------------ ------------ -------------
End of year 39,495,328 22,502,157 11,756,809 11,278,427
============ ============ ============ =============
<CAPTION>
December 31, 1997
-----------------------------
Loan
Fund Total
----------- ---------------
<S> <C> <C>
Assets
Investments, at value (notes 2 and 3) 86,936,264 4,674,578,303
Cash -- 18,360,722
Receivables:
Contributions -- 17,193,699
Receivable for investments sold -- 7,607,584
Dividends and other -- 3,948,703
----------- ---------------
Total receivables -- 28,749,986
----------- ---------------
Total assets 86,936,264 4,721,689,011
----------- ---------------
Liabilities
ESOP note payable -- 17,450,000
Payable for investments purchased -- 6,818,531
----------- ---------------
Total liabilities -- 24,268,531
Receivable from (payable to) other funds -- --
----------- ---------------
Net assets available for plan benefits 86,936,264 4,697,420,480
=========== ===============
Investment activity:
Dividends -- 114,793,555
Interest -- 44,500,303
Appreciation (depreciation) in
fair value of investments -- 1,014,454,681
----------- ---------------
-- 1,173,748,539
Less: Trustee/administrative expenses -- (1,830,683)
----------- ---------------
Net investment income (loss) -- 1,171,917,856
----------- ---------------
Contributions:
Participant 4,408,129 226,379,513
Employer -- 96,750
----------- ---------------
Total contributions 4,408,129 226,476,263
----------- ---------------
Distributions to participants (2,976,030) (217,969,324)
Loan activity, net 14,766,842 --
Transfers from (to) other funds -- --
----------- ---------------
Net increase (decrease) 16,198,941 1,180,424,795
----------- ---------------
Net assets available for plan benefits:
Beginning of year 66,269,195 2,859,499,288
Transfers from (to) other plans (note 1) 4,468,128 657,496,397
----------- ---------------
End of year 86,936,264 4,697,420,480
=========== ===============
</TABLE>
27
<PAGE>
Travelers Group 401(k) Savings Plan
Schedule to Form 5500: Line 27 (a)
Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
Number
of Shares Cost Value **
--------- ---- --------
<S> <C> <C> <C>
Short Term Funds
Liquid Reserve Fund 124,133,706 $ 124,133,706 $ 124,133,706
Stock Funds
Citigroup Inc. Common Stock* 38,824,159 770,674,192 1,929,075,400
Travelers Property Casualty Corp Common Stock* 1,152,082 28,339,767 35,714,542
American Express Common Stock 1,345,948 31,944,755 137,959,670
--------------------------------
830,958,713 2,102,749,612
--------------------------------
Mutual Funds
American Capital Enterprise Fund 3,850,376 57,533,579 79,433,260
American Capital Government Securities Fund 481,210 4,981,375 5,023,835
American Capital Comstock Fund 1,019,974 16,091,684 16,717,378
American Capital Emerging Growth Fund 4,087,096 128,153,719 196,916,280
Smith Barney Money Fund Cash Portfolio 2,067,723 2,067,723 2,067,723
Smith Barney Large Capital Value Fund* 9,048,104 128,996,789 165,670,792
Smith Barney U.S. Government Securities Fund* 1,923,020 25,827,377 25,806,933
Smith Barney Money Fund (Government Portfolio)* 57,102,441 57,102,441 57,102,441
Smith Barney International Equity Fund* 5,644,567 99,774,287 124,744,924
Smith Barney Aggressive Growth Fund* 1,201,672 35,517,352 62,967,637
Smith Barney Appreciation Fund* 14,679,015 170,153,877 224,442,132
Smith Barney Diversified Strategic Fund* 2,695,758 21,597,716 21,188,658
Smith Barney Utility Fund* 882,756 12,508,455 12,040,787
Smith Barney Special Equity Fund* 354,427 10,280,868 10,519,394
Smith Barney Managed Growth Fund* 1,207,211 15,625,213 16,538,787
Salomon Brothers Institutional Money Market Fund* 64,431,648 64,431,648 64,431,648
Salomon Brothers Capital Fund 4,429,665 86,132,713 101,793,697
Bankers Trust Equity Index Fund 58,054 62,866,155 169,372,847
Europacific Growth Fund 2,434,190 58,247,504 69,130,982
Templeton Developing Markets Trust 1,434,330 20,387,086 14,773,604
SB High Yield Bond Fund 794,909 8,086,055 7,861,650
American Odyssey Core Equity Fund* 640,216 11,301,266 13,194,848
American Odyssey Emerging Opportunities Fund* 429,397 4,848,377 5,620,805
American Odyssey International Equity Fund* 319,134 4,674,223 5,377,406
American Odyssey Long-Term Bond Fund* 97,995 1,056,341 1,125,959
American Odyssey Intermediate-Term Bond Fund* 60,705 645,365 675,650
State Street Global Advisors Flagship Fund 792,509 78,265,474 162,242,457
State Street Global Advisors Russell 2000 Fund 2,697,586 44,052,632 62,227,916
CS Growth Portfolio* 418,741 5,645,225 5,858,184
</TABLE>
28
<PAGE>
Travelers Group 401(k) Savings Plan
Schedule to Form 5500: Line 27 (a)
Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
Number
of Shares Cost Value **
--------- ---- --------
<S> <C> <C> <C>
CS High Growth Portfolio* 436,841 5,884,245 6,264,304
CS Balanced Portfolio* 391,422 5,034,430 5,021,942
CS Conservative Portfolio* 104,632 1,276,799 1,250,352
CS Income Portfolio* 99,577 1,169,751 1,141,151
--------------------------------
1,256,217,745 1,718,546,363
--------------------------------
BGI U.S. Tactical Asset Allocation Fund
Wells Fargo Money Market 80 80 80
Wells Fargo Cash for Emloyee Benefit Trust 1 1 1
Wells Fargo US Tactical Asset Allocation Fund 562,690 10,183,787 16,804,166
--------------------------------
10,183,868 16,804,247
--------------------------------
SBAM Broad Market Fixed Income Fund
United States Treasury Notes
4.500% 11/15/08 175,000 177,908 176,367
6.125% 11/15/27 240,000 254,213 268,649
5.625% 05/15/08 585,000 634,699 624,213
5.500% 08/15/28 100,000 100,906 104,672
5.375% 06/30/03 350,000 360,475 360,171
6.375% 03/31/01 75,000 78,301 77,742
6.500% 10/15/06 250,000 249,849 277,305
5.250% 08/15/03 250,000 263,107 256,368
Federal Home Ln Mtg Corp
9.000% 01/01/24 250,594 248,949 252,546
8.000% 07/01/20 98,607 102,480 103,368
Federal Nat Mtg Assn Gtd
9.000% 01/01/24 108,163 116,072 115,159
6.500% 12/01/25 71,995 70,353 72,511
6.500% 12/01/10 65,676 65,317 66,664
7.000% 03/01/26 76,229 75,585 77,793
6.500% 04/01/13 33,899 34,122 34,388
Belo (MA) Corp Deb 7.250% 09/15/27 125,000 124,263 125,855
Banc One Auto Grantor Tr 1997-B Asset Backed
6.290% 07/20/04 82,948 82,942 83,647
First Data Corp Medium Term Nts 6.375% 12/15/07 150,000 149,564 155,420
Green Tree Finl Corp 97-6 MFD HSG 7.070% 01/16/29 96,797 96,782 106,601
Contimortgage Home Equity LNTR 6.070% 03/15/13 200,000 199,971 200,436
Comdisco Inc. Notes 6.130% 08/01/01 120,000 120,000 119,078
DLJ Coml. Mtg. Corp. Coml. Mtg. 6.110% 06/10/31 146,390 145,171 148,907
</TABLE>
29
<PAGE>
Travelers Group 401(k) Savings Plan
Schedule to Form 5500: Line 27 (a)
Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
Number
of Shares Cost Value **
--------- ---- --------
<S> <C> <C> <C>
Ford Cr. Auto Owner TR 1998-B Asset
5.850% 10/15/01 175,000 174,962 176,727
GTE Corp. Deb. Reg. 6.940% 04/15/28 60,000 59,930 65,163
Merrill Lynch Notes 6.000% 11/15/04 50,000 50,125 50,537
Norsk Hydro AS Deb. 6.700% 01/15/18 100,000 99,488 99,370
Nationsbank Credit Card Master Trust
Ser 1995-1 8.450% 04/15/2003 80,000 80,363 82,260
Staples Inc Sr Nt Reg 7.125% 08/15/2007 100,000 99,787 101,434
Proxair Inc. Notes 6.150% 04/15/03 125,000 124,838 124,706
Pohang IR & Stl 7.500% 08/01/2002 125,000 128,486 115,121
Empresa Elec Pehuenhe Notes 05/01/2003 150,000 150,356 139,815
--------------------------------
4,719,364 4,762,993
--------------------------------
Fisher Francis Intermediate Bond Fund
Federal Nat Mtg Assn Stripped Mortgage Backed
Secs. SMBS
Principal only 02/01/23 20,664 16,816 18,271
US Treasury Bill 4.380% 5/27/99 700,000 685,643 687,820
Federal Nat Mtg Assn Gtd
6.500% 01/01/29 6,000,000 6,018,750 6,041,100
Residential Fdg Mtg Secs II Inc. Home
Equity Ln Bkd Nt 1997-HS2 Adj Rate Reg
5.125% 09/20/22 193 193 193
--------------------------------
6,721,402 6,747,383
--------------------------------
Guaranteed Investment Contracts - Salomon ***
American International Life Assurance Co.
of NY GIC#18287 4,788,937 4,788,937 4,788,937
Trv. Group GR-16878 32,098,536 32,098,536 32,098,536
CNA GP #24014 4,327,357 4,327,357 4,327,357
CNA GIC 24014-016 9,402,545 9,402,545 9,402,545
Met Life Ins. Co. GAC #13739 11,283,290 11,283,290 11,283,290
New York Life Ins Co #GA 06538-003 5,534,581 5,534,581 5,534,581
New York Life Fixed Dollar Account GA-06538004 10,245,967 10,245,967 10,245,967
--------------------------------
77,681,213 77,681,213
--------------------------------
Guaranteed Investment Contract - Smith Barney ****
Principal Financial Corporate Contract #4-09271-01 7,749,629 7,749,629 7,749,629
Principal Financial Corporate Contract #49271-2 2,410,359 2,410,359 2,410,359
Prudential Insurance Company GIC #7658-211 7,609,368 7,609,368 7,609,368
Prudential Insurance Company GIC #7658-212 5,689,511 5,689,511 5,689,511
Travelers Insurance Company #GR-16959 123,164 123,164 123,164
Travelers Insurance Company #GR-17104 30,209,964 30,209,964 30,209,964
</TABLE>
30
<PAGE>
Travelers Group 401(k) Savings Plan
Schedule to Form 5500: Line 27 (a)
Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
Number
of Shares Cost Value **
--------- ---- --------
<S> <C> <C> <C>
Travelers GIC Contract # 16569 11,991,496 11,991,496 11,991,496
Travelers Life Contract #GR - 16384 Mat 50,508,000 50,508,000 50,508,000
Travelers Life Contract #GR - 16384 Account 1 15,989,145 15,989,145 15,989,145
Travelers Insurance Company #GR-16409A 13,557,058 13,557,058 13,557,058
--------------------------------
145,837,694 145,837,694
--------------------------------
Guaranteed Annuity Contracts - Copeland
Group annuity contract GR 16487* 1,780,963 1,780,963 1,780,963
Group annuity contract GR 16573* 2,736,915 2,736,915 2,736,915
Group annuity contract GR 16958* 4,092,800 4,092,800 4,092,800
--------------------------------
8,610,678 8,610,678
--------------------------------
Travelers Insurance Company Annuity Contracts* 482,980,406 $ 482,980,406 $ 482,980,406
Universal Life Insurance Contract 70,122 70,122
In-Time Investing Fund* 107,402 -- 1,451,617
Loan Fund ***** 94,177,654 94,177,654
--------------- ---------------
Total $3,036,292,565 $4,784,553,688
=============== ===============
</TABLE>
* Parties-in-interest exempt under ERISA Regulations. See note 5 to
financial statements.
** See note 2 to financial statements for a discussion of investment
valuation.
*** The interest rates of the guaranteed investment contracts range from
6.1% to 7.2%. The blended rate of return earned for 1998 was 6.52% prior
to fund expenses.
**** The interest rates of the guaranteed investment contracts range from
5.4% to 7.3%. The blended rate of return earned for 1998 was 6.46% prior
to fund expenses.
***** The interest rate on loans to participants equal from one to two
percentage points above the Prime Rate published in the Wall Journal for
the first business day of the month in which the loan application is
received.
31
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
Schedule to Form 5500: Item 27(d)
Schedule of Reportable Transactions
For the year ended December 31, 1998
The following series of transactions exceeded 5% of the Plan's net assets
available for plan benefits.
<TABLE>
<CAPTION>
No. of Purchase Selling Expense Cost Net
Description transactions price price with trade of asset gain(loss)
- ----------- ------------ ----- ----- ---------- -------- ----------
<S> <C> <C> <C> <C> <C> <C>
Liquid Reserve Fund 3,619 $ 584,261,962 $ -- $ -- $ 584,261,962 --
Liquid Reserve Fund 2,870 $ -- 531,210,937 -- 531,210,937 --
Citigroup Inc. Common Stock 665 $ 462,667,496 -- 190,455 462,857,951 --
Citigroup Inc. Common Stock 611 $ -- 185,479,375 92,404 60,372,503 125,014,468
</TABLE>
32
THE SAVINGS INCENTIVE PLAN OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
December 31, 1998 and 1997
INDEX
Independent Auditors' Report
Financial Statements:
Statements of Net Assets Available for Plan Benefits
as of December 31, 1998
Statements of Changes in Net Assets Available for Plan
Benefits for the Year Ended December 31, 1998
Statements of Net Assets Available for Plan Benefits
as of December 31, 1997
Statements of Changes in Net Assets Available for Plan
Benefits for the Year Ended December 31, 1997
Notes to the Financial Statements
Supplemental Schedules:
Schedule I - Assets Held for Investment Purposes
(A) Item 27a - Schedule of Assets Held for Investment Purposes
as of December 31, 1998
(B) Item 27a - Schedule of Assets Held for Investment Purposes
Which Were Both Acquired and Disposed of Within the Plan
Year Ended December 31, 1998
Schedule II - Item 27d - Schedule of Reportable Transactions
During the Year Ended December 31, 1998
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors
Citibank, N.A.:
We have audited the accompanying statements of net assets available for plan
benefits of The Savings Incentive Plan of Citibank, N.A. and Participating
Companies (as Amended and Restated) (the "Plan") as of December 31, 1998 and
1997, and the related statements of changes in net assets available for plan
benefits for each of the years in the two-year period ended December 31, 1998.
These financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Plan as
of December 31, 1998 and 1997, and changes in net assets available for plan
benefits for each of the years in the two-year period ended December 31, 1998,
in conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental Schedules I-A, I-B and
II 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 (ERISA).
These supplemental schedules are the responsibility of the Plan's management.
The Fund Information in the statements of net assets available for benefits and
the statements of changes in net assets available for 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 supplemental schedules as of December 31, 1998 and Fund Information as
of and for the years ended December 31, 1998 and 1997 have been subjected to the
auditing procedures applied in the audits of the basic financial statements and,
in our opinion, are fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
KPMG LLP
New York, New York
March 19, 1999
<PAGE>
THE SAVINGS INCENTIVE PLAN OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
As Of December 31, 1998
<TABLE>
<CAPTION>
TRUST FUNDS at DECEMBER 31, 1998 - PARTICIPANT DIRECTED
------------------------------------------------------------------------
FUND A FUND B FUND C FUND E
Fixed Diversified
Income Citigroup Equity Capital
Securities Stock Investments Preservation
Fund Fund Fund Fund
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
INVESTMENTS AT FAIR VALUE
(Cost: $2,045,393,963 at 12/31/98 (Note 7)
US GOVERNMENT AND AGENCY
OBLIGATIONS $ 107,019,241 $ -- $ 2,081,436 $ --
CORPORATE BONDS 51,397,400 -- -- --
FOREIGN BONDS 10,342,306 -- -- --
GUARANTEED INVESTMENT CONTRACTS -- -- -- 234,932,463
SYNTHETIC INVESTMENT CONTRACTS -- -- -- 221,839,666
RESALE AGREEMENT -- -- -- 9,931,000
COMMINGLED TRUST FUNDS 8,196,540 11,127,484 631,620,708 --
MUTUAL FUNDS -- -- -- --
SEPARATE INVESTMENT PORTFOLIO -- -- -- --
CITIGROUP MARKET VALUE COMMON STOCK -- 1,037,777,697 -- --
------------------------------------------------------------------------
TOTAL INVESTMENTS 176,955,487 1,048,905,181 633,702,144 466,703,129
------------------------------------------------------------------------
CASH -- -- -- --
ACCRUED DIVIDENDS & INTEREST 2,276,179 43,957 128,302 2,542,108
RECEIVABLE FOR SECURITIES
SOLD BUT NOT DELIVERED -- -- -- --
DUE FROM CITIBANK, N.A. 5,656,324 31,282,261 20,985,419 15,777,762
FWD CURRENCY CONTRACTS RECEIVABLE -- -- -- --
------------------------------------------------------------------------
TOTAL ASSETS $ 184,887,990 $ 1,080,231,399 $ 654,815,865 $ 485,022,999
========================================================================
LIABILITIES:
PAYABLE TO PARTICIPANTS (24,779) (55,347) (43,863) (155,660)
PAYABLE FOR SECURITIES PURCHASED
BUT NOT RECEIVED (6,667,916) -- -- --
FWD CURRENCY CONTRACTS PAYABLE -- -- (60,337) --
------------------------------------------------------------------------
TOTAL LIABILITIES $ (6,692,695) $ (55,347) $ (104,200) $ (155,660)
========================================================================
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 178,195,295 $ 1,080,176,052 $ 654,711,665 $ 484,867,339
========================================================================
PARTICIPANT'S UNITS IN TRUST FUND 15,972,538 117,414,818 49,593,463 44,386,504
========================================================================
UNIT VALUES IN TRUST FUND $ 11.1564 $ 9.1997 $ 13.2016 $ 10.9238
========================================================================
<CAPTION>
TRUST FUNDS at DECEMBER 31, 1998 - PARTICIPANT DIRECTED
-------------------------------------------------------
FUND F FUND G FUND H
International Cash to be
Small Cap Securities Lifestyle Distributed to
Fund Fund Funds Participants
----------------------------------------------------- ---------------
<S> <C> <C> <C> <C>
ASSETS:
INVESTMENTS AT FAIR VALUE
(Cost: $2,045,393,963 at 12/31/98 (Note 7)
US GOVERNMENT AND AGENCY
OBLIGATIONS $ -- $ -- $ -- $ --
CORPORATE BONDS -- -- -- --
FOREIGN BONDS -- -- -- --
GUARANTEED INVESTMENT CONTRACTS -- -- -- --
SYNTHETIC INVESTMENT CONTRACTS -- -- -- --
RESALE AGREEMENT -- -- -- --
COMMINGLED TRUST FUNDS 134,330,060 -- -- --
MUTUAL FUNDS -- 107,113,273 -- --
SEPARATE INVESTMENT PORTFOLIO -- -- 315,150,696 --
CITIGROUP MARKET VALUE COMMON STOCK -- -- -- --
----------------------------------------------------- ---------------
TOTAL INVESTMENTS 134,330,060 107,113,273 315,150,696 --
----------------------------------------------------- ---------------
CASH -- -- 2,394,797 --
ACCRUED DIVIDENDS & INTEREST -- -- 2,307,801 --
RECEIVABLE FOR SECURITIES
SOLD BUT NOT DELIVERED -- -- 10,322,351 --
DUE FROM CITIBANK, N.A. 8,873,951 6,086,947 12,171,945 8,949,408
FWD CURRENCY CONTRACTS RECEIVABLE -- -- 88,144,352 --
----------------------------------------------------- ---------------
TOTAL ASSETS $ 143,204,011 $ 113,200,220 $ 430,491,942 8,949,408
===================================================== ===============
LIABILITIES:
PAYABLE TO PARTICIPANTS (6,218) (6,300) (15,136) (8,949,408)
PAYABLE FOR SECURITIES PURCHASED
BUT NOT RECEIVED -- -- (49,028,044) --
FWD CURRENCY CONTRACTS PAYABLE -- -- (87,454,593) --
----------------------------------------------------- ---------------
TOTAL LIABILITIES $ (6,218) $ (6,300) $ (136,497,773) (8,949,408)
===================================================== ===============
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 143,197,793 $ 113,193,920 $ 293,994,169 $ --
===================================================== ===============
PARTICIPANT'S UNITS IN TRUST FUND 13,989,343 11,262,116
==================================
UNIT VALUES IN TRUST FUND $ 10.2362 $ 10.0509
==================================
<CAPTION>
TOTAL
FUNDS
---------------
<S> <C>
ASSETS:
INVESTMENTS AT FAIR VALUE
(Cost: $2,045,393,963 at 12/31/98 (Note 7)
US GOVERNMENT AND AGENCY
OBLIGATIONS $ 109,100,677
CORPORATE BONDS 51,397,400
FOREIGN BONDS 10,342,306
GUARANTEED INVESTMENT CONTRACTS 234,932,463
SYNTHETIC INVESTMENT CONTRACTS 221,839,666
RESALE AGREEMENT 9,931,000
COMMINGLED TRUST FUNDS 785,274,792
MUTUAL FUNDS 107,113,272
SEPARATE INVESTMENT PORTFOLIO 315,150,696
CITIGROUP MARKET VALUE COMMON STOCK 1,037,777,697
---------------
TOTAL INVESTMENTS 2,882,859,970
---------------
CASH 2,394,797
ACCRUED DIVIDENDS & INTEREST 7,298,347
RECEIVABLE FOR SECURITIES
SOLD BUT NOT DELIVERED 10,322,351
DUE FROM CITIBANK, N.A. 109,784,017
FWD CURRENCY CONTRACTS RECEIVABLE 88,144,352
---------------
TOTAL ASSETS $ 3,100,803,834
===============
LIABILITIES:
PAYABLE TO PARTICIPANTS (9,256,711)
PAYABLE FOR SECURITIES PURCHASED
BUT NOT RECEIVED (55,695,960)
FWD CURRENCY CONTRACTS PAYABLE (87,514,930)
---------------
TOTAL LIABILITIES $ (152,467,602)
===============
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 2,948,336,233
===============
PARTICIPANT'S UNITS IN TRUST FUND
UNIT VALUES IN TRUST FUND
</TABLE>
See Accompanying Notes to the Financial Statements
5
<PAGE>
THE SAVINGS INCENTIVE PLAN OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN
BENEFITS, WITH FUND INFORMATION
For The Year Ended December 31, 1998
<TABLE>
<CAPTION>
TRUST FUNDS FOR THE YEAR ENDED DECEMBER 31, 1998 - PARTICIPANT DIRECTED
------------------------------------------------------------------------
FUND A FUND B FUND C FUND E
Fixed Diversified
Income Citigroup Equity Capital
Securities Stock Investments Preservation
Fund Fund Fund Fund
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
INVESTMENT INCOME
NET REALIZED AND UNREALIZED
APPRECIATION/(DEPRECIATION) IN
FAIR VALUE OF INVESTMENTS (Note 7) $ 2,445,741 $ (8,149,482) $ 133,839,825 $ 9,831
INTEREST 9,757,414 1,077,273 1,457,406 27,523,739
DIVIDENDS ON CITIGROUP COMMON STOCK -- 16,764,144 -- --
DIVIDENDS ON OTHER COMMON STOCK -- -- 8,880,334 --
------------------------------------------------------------------------
TOTAL INCOME 12,203,155 9,691,935 144,177,565 27,533,570
CONTRIBUTIONS AND OTHER ADDITIONS
EMPLOYER 6,470,318 28,588,125 19,229,791 16,563,261
PARTICIPANT VOLUNTARY DEPOSIT 5,383,407 24,746,908 23,548,233 9,284,380
LOAN REPAYMENTS BY PARTICIPANTS'
ACCOUNTS 1,720,683 12,319,326 5,631,728 9,585,173
------------------------------------------------------------------------
TOTAL ADDITIONS 25,777,564 75,346,293 192,587,317 62,966,384
------------------------------------------------------------------------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
PARTICIPANTS' WITHDRAWALS (9,213,699) (56,996,781) (36,954,304) (40,099,806)
LOANS FROM INDIVIDUAL PARTICIPANTS'
ACCOUNTS (1,678,266) (14,268,073) (6,634,969) (7,186,710)
DIVESTMENT BY OTHER FUNDS -- -- -- --
------------------------------------------------------------------------
TOTAL DEDUCTIONS (10,891,965) (71,264,854) (43,589,273) (47,286,516)
------------------------------------------------------------------------
NET CHANGE DURING YEAR BEFORE
TRANSFERS 14,885,598 4,081,440 148,998,044 15,679,868
PARTICIPANTS' TRANSFERS BETWEEN
FUNDS 26,808,492 73,870,350 (30,382,222) 11,902,046
------------------------------------------------------------------------
NET INCREASE/(DECREASE) 41,694,090 77,951,790 118,615,822 27,581,914
NET ASSETS AVAILABLE FOR PLAN
BENEFITS:
BALANCE AT BEGINNING OF YEAR 136,501,205 1,002,224,262 536,095,843 457,285,425
------------------------------------------------------------------------
BALANCE AT END OF YEAR $ 178,195,295 $ 1,080,176,052 $ 654,711,665 $ 484,867,339
========================================================================
<CAPTION>
TRUST FUNDS FOR THE YEAR ENDED DECEMBER 31, 1998 -
PARTICIPANT DIRECTED
-----------------------------------------------------
FUND F FUND G FUND H
International Cash to be
Small Cap Securities Lifestyle Distributed to
Fund Fund Funds Participants
----------------------------------------------------- ---------------
<S> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
INVESTMENT INCOME
NET REALIZED AND UNREALIZED
APPRECIATION/(DEPRECIATION) IN
FAIR VALUE OF INVESTMENTS (Note 7) $ (6,487,025) $ 11,161,179 $ 8,310,580 --
INTEREST 58,015 2,214,671 8,590,753 --
DIVIDENDS ON CITIGROUP COMMON STOCK -- -- -- --
DIVIDENDS ON OTHER COMMON STOCK -- -- 1,981,683 --
----------------------------------------------------- ---------------
TOTAL INCOME (6,429,010) 13,375,850 18,883,016 --
CONTRIBUTIONS AND OTHER ADDITIONS
EMPLOYER 8,683,829 5,891,027 11,757,830 8,949,408
PARTICIPANT VOLUNTARY DEPOSIT 10,823,294 6,102,756 12,050,565 --
LOAN REPAYMENTS BY PARTICIPANTS'
ACCOUNTS 2,818,122 1,987,292 3,880,357 $ --
----------------------------------------------------- ---------------
TOTAL ADDITIONS 15,896,235 27,356,925 46,571,768 8,949,408
----------------------------------------------------- ---------------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
PARTICIPANTS' WITHDRAWALS (7,771,079) (6,373,030) (18,200,022) (8,949,408)
LOANS FROM INDIVIDUAL PARTICIPANTS'
ACCOUNTS (2,459,678) (1,692,587) (4,311,403) --
DIVESTMENT BY OTHER FUNDS -- -- -- --
----------------------------------------------------- ---------------
TOTAL DEDUCTIONS (10,230,757) (8,065,617) (22,511,425) (8,949,408)
----------------------------------------------------- ---------------
NET CHANGE DURING YEAR BEFORE
TRANSFERS 5,665,478 19,291,308 24,060,343 --
PARTICIPANTS' TRANSFERS BETWEEN
FUNDS (25,696,007) (18,206,930) (38,295,729) --
----------------------------------------------------- ---------------
NET INCREASE/(DECREASE) (20,030,529) 1,084,378 (14,235,386) --
NET ASSETS AVAILABLE FOR PLAN
BENEFITS:
BALANCE AT BEGINNING OF YEAR 163,228,322 112,109,542 308,229,555 --
----------------------------------------------------- ---------------
BALANCE AT END OF YEAR $ 143,197,793 $ 113,193,920 $ 293,994,169 --
===================================================== ===============
<CAPTION>
TOTAL
FUNDS
---------------
<S> <C>
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
INVESTMENT INCOME
NET REALIZED AND UNREALIZED
APPRECIATICN/(DEPRECIATION) IN
FAIR VALUE OF INVESTMENTS (Note 7) $ 141,130,649
INTEREST 50,679,271
DIVIDENDS ON CITIGROUP COMMON STOCK 16,764,144
DIVIDENDS ON OTHER COMMON STOCK 10,862,017
---------------
TOTAL INCOME 219,436,081
CONTRIBUTIONS AND OTHER ADDITIONS
EMPLOYER 106,133,589
PARTICIPANT VOLUNTARY DEPOSIT 91,939,543
LOAN REPAYMENTS BY PARTICIPANTS'
ACCOUNTS 37,942,681
---------------
TOTAL ADDITIONS 455,451,894
---------------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
PARTICIPANTS' WITHDRAWALS (184,558,129)
LOANS FROM INDIVIDUAL PARTICIPANTS'
ACCOUNTS (38,231,686)
DIVESTMENT BY OTHER FUNDS --
---------------
TOTAL DEDUCTIONS (222,789,815)
---------------
NET CHANGE DURING YEAR BEFORE
TRANSFERS 232,662,079
PARTICIPANTS' TRANSFERS BETWEEN
FUNDS --
---------------
NET INCREASE/(DECREASE) 232,662,079
NET ASSETS AVAILABLE FOR PLAN
BENEFITS:
BALANCE AT BEGINNING OF YEAR 2,715,674,154
---------------
BALANCE AT END OF YEAR $ 2,948,336,233
===============
</TABLE>
See Accompanying Notes to the Financial Statements
6
<PAGE>
THE SAVINGS INCENTIVE PLAN OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
As Of December 31, 1997
<TABLE>
<CAPTION>
TRUST FUNDS at DECEMBER 31, 1997 - PARTICIPANT DIRECTED
------------------------------------------------------------------------
FUND A FUND B FUND C FUND E
Fixed S/B Diversified
Income Citicorp Equity Capital
Securities Stock Investments Preservation
Fund Fund Fund Fund
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
INVESTMENTS AT FAIR VALUE
(Cost: $1,780,876,569 at 12/31/97 (Note 7)
US GOVERNMENT AND AGENCY
OBLIGATIONS $ 81,071,491 $ -- $ 593,490 $ --
CORPORATE BONDS 44,845,196 -- -- 30,162,868
FOREIGN BONDS 3,088,817 -- -- --
GUARANTEED INVESTMENT CONTRACTS -- -- -- 201,901,729
SYNTHETIC INVESTMENT CONTRACTS -- -- -- 172,858,637
RESALE AGREEMENT -- -- -- 31,026,000
COMMINGLED TRUST FUNDS 481,428 15,691,052 517,916,886 --
MUTUAL FUNDS -- -- -- --
SEPARATE INVESTMENT PORTFOLIO -- -- -- --
CITIGROUP MARKET VALUE COMMON STOCK -- 966,669,940 -- --
------------------------------------------------------------------------
TOTAL INVESTMENTS 129,486,932 982,360,992 518,510,376 435,949,234
------------------------------------------------------------------------
RECEIVABLES:
ACCRUED DIVIDENDS & INTEREST 1,973,637 49,593 41,571 2,280,753
RECEIVABLE FOR SECURITIES
SOLD BUT NOT DELIVERED -- -- --
DUE FROM CITIBANK, N.A. 5,042,126 23,544,511 17,570,547 19,124,821
FWD CURRENCY CONTRACTS RECEIVABLE -- -- -- --
------------------------------------------------------------------------
TOTAL ASSETS $ 136,502,695 $ 1,005,955,096 $ 536,122,494 $ 457,354,808
========================================================================
LIABILITIES:
PAYABLE TO PARTICIPANTS (1,490) (10,003) (25,051) (69,383)
PAYABLE FOR SECURITIES PURCHASED
BUT NOT RECEIVED -- (3,720,831) (1,600) --
FWD CURRENCY CONTRACTS PAYABLE -- -- -- --
NET UNREALIZED LOSS ON FORWARD CURRENCY
CONTR'S AND OTHER SECURITY POSITIONS -- -- -- --
------------------------------------------------------------------------
TOTAL LIABILITIES $ (1,490) $ (3,730,834) $ (26,651) $ (69,383)
========================================================================
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 136,501,205 $ 1,002,224,262 $ 536,095,843 $ 457,285,425
========================================================================
PARTICIPANTS' UNITS IN TRUST FUND 13,241,665 107,235,538 52,303,153 44,383,491
========================================================================
UNIT VALUES IN TRUST FUND $ 10.3084 $ 9.3458 $ 10.2498 $ 10.3031
========================================================================
<CAPTION>
TRUST FUNDS at DECEMBER 31, 1997 - PARTICIPANT DIRECTED
-------------------------------------------------------
FUND F FUND G FUND H
International Lifestyle Cash to be
Small Cap Securities Fund Distributed to
Fund Fund Portfolio 300 Participants
----------------------------------------------------- ---------------
<S> <C> <C> <C> <C>
ASSETS:
INVESTMENTS AT FAIR VALUE
(Cost: $1,780,876,569 at 12/31/97 (Note 7)
US GOVERNMENT AND AGENCY
OBLIGATIONS $ -- $ -- $ -- $ --
CORPORATE BONDS -- -- -- --
FOREIGN BONDS -- -- -- --
GUARANTEED INVESTMENT CONTRACTS -- -- -- --
SYNTHETIC INVESTMENT CONTRACTS -- -- -- --
RESALE AGREEMENT -- -- -- --
COMMINGLED TRUST FUNDS 153,593,273 -- -- --
MUTUAL FUNDS -- 105,346,945 -- --
SEPARATE INVESTMENT PORTFOLIO -- -- 331,871,766 --
CITIGROUP MARKET VALUE COMMON STOCK -- -- -- --
----------------------------------------------------- ---------------
TOTAL INVESTMENTS 153,593,273 105,346,945 331,871,766 --
----------------------------------------------------- ---------------
RECEIVABLES:
ACCRUED DIVIDENDS & INTEREST -- -- 2,294,471 --
RECEIVABLE FOR SECURITIES
SOLD BUT NOT DELIVERED -- -- 5,390,600 --
DUE FROM CITIBANK, N.A. 10,000,166 6,763,335 13,058,456 7,562,878
FWD CURRENCY CONTRACTS RECEIVABLE -- -- 87,948,300 --
----------------------------------------------------- ---------------
TOTAL ASSETS $ 163,593,439 $ 112,110,280 $ 440,563,593 $ 7,562,878
===================================================== ===============
LIABILITIES:
PAYABLE TO PARTICIPANTS (6,087) (738) (17,219) (7,562,878)
PAYABLE FOR SECURITIES PURCHASED
BUT NOT RECEIVED (359,030) -- (42,229,850) --
FWD CURRENCY CONTRACTS PAYABLE -- -- (87,948,300) --
NET UNREALIZED LOSS ON FORWARD CURRENCY
CONTR'S AND OTHER SECURITY POSITIONS -- -- (2,138,669) --
----------------------------------------------------- ---------------
TOTAL LIABILITIES $ (365,117) $ (738) $ (132,334,038) $ (7,562,878)
===================================================== ===============
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 163,228,322 $ 112,109,542 $ 308,229,555 $ --
===================================================== ===============
PARTICIPANTS UNITS IN TRUST FUND 15,464,732 12,652,821 31,129,020
=====================================================
UNIT VALUES IN TRUST FUND $ 10.5549 $ 8.8604 $ 9.9017
=====================================================
<CAPTION>
TOTAL
FUNDS
---------------
<S> <C>
ASSETS:
INVESTMENTS AT FAIR VALUE
(Cost: $1,780,876,569 at 12/31/97 (Note 7)
US GOVERNMENT AND AGENCY
OBLIGATIONS $ 81,664,981
CORPORATE BONDS 75,008,064
FOREIGN BONDS 3,088 817
GUARANTEED INVESTMENT CONTRACTS 201,901,729
SYNTHETIC INVESTMENT CONTRACTS 172,858,637
RESALE AGREEMENT 31,026,000
COMMINGLED TRUST FUNDS 687,682,639
MUTUAL FUNDS 105,346,945
SEPARATE INVESTMENT PORTFOLIO 331,871,766
CITIGROUP MARKET VALUE COMMON STOCK 966,669,940
---------------
TOTAL INVESTMENTS 2,657,119,518
---------------
RECEIVABLES:
ACCRUED DIVIDENDS & INTEREST 6,640,025
RECEIVABLE FOR SECURITIES
SOLD BUT NOT DELIVERED 5,390,600
DUE FROM CITIBANK, N.A. 102,666,840
FWD CURRENCY CONTRACTS RECEIVABLE 87,948,300
---------------
TOTAL ASSETS $ 2,859,765,283
===============
LIABILITIES:
PAYABLE TO PARTICIPANTS (7,692,849)
PAYABLE FOR SECURITIES PURCHASED
BUT NOT RECEIVED (46,311,311)
FWD CURRENCY CONTRACTS PAYABLE (87,948,300)
NET UNREALIZED LOSS ON FORWARD CURRENCY
CONTR'S AND OTHER SECURITY POSITIONS (2,138,669)
---------------
TOTAL LIABILITIES $ (144,091,129)
===============
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 2,715,674,154
===============
PARTICIPANTS UNITS IN TRUST FUND
UNIT VALUES IN TRUST FUND
</TABLE>
See Accompanying Notes to the Financial Statements
7
<PAGE>
THE SAVINGS INCENTIVE PLAN OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN
BENEFITS, WITH FUND INFORMATION
For The Year Ended December 31, 1997
<TABLE>
<CAPTION>
TRUST FUNDS FOR THE YEAR ENDED DECEMBER 31, 1997 - PARTICIPANT DIRECTED
------------------------------------------------------------------------
FUND A FUND B FUND C FUND D
Fixed Diversified
Income Citigroup Equity Citicorp
Securities Stock Investments Book Value
Fund Fund Fund Common Stock
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
INVESTMENT INCOME
NET REALIZED AND UNREALIZED
APPRECIATION/(DEPRECIATION) IN
FAIR VALUE OF INVESTMENTS (Note 7) $ 1,916,956 $ 183,191,025 $ 151,756,581 $ 1,760,705
INTEREST 11,368,950 469,444 133,569 25,465
DIVIDENDS ON CITICORP COMMON STOCK -- 16,085,977 -- 794,546
DIVIDENDS ON OTHER COMMON STOCK -- -- 9,984,079 --
------------------------------------------------------------------------
TOTAL INCOME 13,285,906 199,746,446 161,874,229 2,580,716
CONTRIBUTIONS AND OTHER ADDITIONS
EMPLOYER 5,204,987 22,955,832 16,019,469 --
PARTICIPANT VOLUNTARY DEPOSIT 4,099,166 17,590,990 17,569,451 --
LOAN REPAYMENTS BY PARTICIPANTS'
ACCOUNTS 1,389,917 8,300,396 4,185,264 23,942
TRANSFER OF BOOK VALUE STOCK
FUND D TO FUND B -- 32,155,358 -- (32,155,358)
INVESTMENT BY OTHER FUNDS 9,600,634 -- 889,285 --
ASSET REALLOCATION (96,173,157) -- (149,711,702) --
------------------------------------------------------------------------
TOTAL ADDITIONS (62,592,547) 280,749,022 50,825,996 (29,550,700)
------------------------------------------------------------------------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
PARTICIPANTS' WITHDRAWALS (7,374,290) (43,089,410) (25,926,348) (451,890)
LOANS FROM INDIVIDUAL PARTICIPANTS'
ACCOUNTS (1,975,021) (12,501,926) (4,470,019) (24,745)
DIVESTMENT BY OTHER FUNDS (1,908,057) -- (18,123,865) --
------------------------------------------------------------------------
TOTAL DEDUCTIONS (11,257,368) (55,591,336) (48,520,232) (476,635)
------------------------------------------------------------------------
NET CHANGE DURING YEAR BEFORE
TRANSFERS (73,849,915) 225,157,686 2,305,764 (30,027,335)
PARTICIPANTS' TRANSFERS BETWEEN
FUNDS 13,596,689 (22,209,236) 23,161,892 (1,132,261)
------------------------------------------------------------------------
NET INCREASE/(DECREASE) (60,253,226) 202,948,450 25,467,656 (31,159,596)
NET ASSETS AVAILABLE FOR PLAN
BENEFITS:
BALANCE AT BEGINNING OF YEAR 196,754,431 799,275,812 510,628,187 31,159,596
------------------------------------------------------------------------
BALANCE AT END OF YEAR $ 136,501,205 $ 1,002,224,262 $ 536,095,843 $ --
========================================================================
<CAPTION>
TRUST FUNDS FOR THE YEAR ENDED DECEMBER 31, 1997 - PARTICIPANT DIRECTED
------------------------------------------------------------------------
FUND E FUND F FUND G FUND H
Capital International Lifestyle
Preservation Small Cap Securities Fund
Fund Fund Fund Portfolio 300
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
INVESTMENT INCOME
NET REALIZED AND UNREALIZED
APPRECIATION/(DEPRECIATION) IN
FAIR VALUE OF INVESTMENTS (Note 7) $ 325 $ 9,726,446 $ 1,564,451 $ 40,027,399
INTEREST 28,185,374 71,322 92,535 2,939,825
DIVIDENDS ON CITICORP COMMON STOCK -- -- -- --
DIVIDENDS ON OTHER COMMON STOCK -- 38,071 1,418,609 1,139,672
------------------------------------------------------------------------
TOTAL INCOME 28,185,699 9,835,839 3,075,595 44,106,896
CONTRIBUTIONS AND OTHER ADDITIONS
EMPLOYER 17,632,207 9,358,001 6,637,287 12,107,774
PARTICIPANT VOLUNTARY DEPOSIT 9,119,791 10,612,920 6,422,738 11,127,553
LOAN REPAYMENTS BY PARTICIPANTS'
ACCOUNTS 8,688,681 2,218,722 1,610,410 3,442,708
TRANSFER OF BOOK VALUE STOCK
FUND D TO FUND B -- -- -- --
INVESTMENT BY OTHER FUNDS 29,429,371 4,548,108 1,625,315 --
ASSET REALLOCATION (40,168,400) (26,107,715) -- --
------------------------------------------------------------------------
TOTAL ADDITIONS 52,887,349 10,465,875 19,371,345 70,784,931
------------------------------------------------------------------------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO:
PARTICIPANTS' WITHDRAWALS (34,359,842) (6,959,107) (6,089,620) (17,023,962)
LOANS FROM INDIVIDUAL PARTICIPANTS'
ACCOUNTS (8,863,391) (2,423,334) (1,741,172) (3,753,431)
DIVESTMENT BY OTHER FUNDS (339,802) (2,362,308) (31,085,922) --
------------------------------------------------------------------------
TOTAL DEDUCTIONS (43,563,035) (11,744,749) (38,916,714) (20,777,393)
------------------------------------------------------------------------
NET CHANGE DURING YEAR BEFORE
TRANSFERS 9,324,314 (1,278,874) (19,545,369) 50,007,538
PARTICIPANTS' TRANSFERS BETWEEN
FUNDS 16,338,666 120,173 (8,996,639) (20,879,284)
------------------------------------------------------------------------
NET INCREASE/(DECREASE) 25,662,980 (1,158,701) (28,542,008) 29,128,254
NET ASSETS AVAILABLE FOR PLAN
BENEFITS:
BALANCE AT BEGINNING OF YEAR 431,622,445 164,387,023 140,651,550 279,101,301
------------------------------------------------------------------------
BALANCE AT END OF YEAR $ 457,285,425 $ 163,228,322 $ 112,109,542 $ 308,229,555
========================================================================
<CAPTION>
TRUST FUNDS FOR
THE YEAR ENDED
DECEMBER 31, 1997 -
PARTICIPANT DIRECTED
--------------------
Adj. for Fund H
Participation Cash to be
in the Units of Distributed to TOTAL
Other Plan Funds Participants FUNDS
--------------- --------------- ---------------
<S> <C> <C> <C>
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
INVESTMENT INCOME
NET REALIZED AND UNREALIZED
APPRECIATION/(DEPRECIATION) IN
FAIR VALUE OF INVESTMENTS (Note 7) $ 272,193,652 -- $ 662,137,540
INTEREST -- -- 43,286,484
DIVIDENDS ON CITICORP COMMON STOCK -- -- 16,880,523
DIVIDENDS ON OTHER COMMON STOCK -- -- 12,580,431
--------------- --------------- ---------------
TOTAL INCOME 272,193,652 -- 734,884,978
CONTRIBUTIONS AND OTHER ADDITIONS
EMPLOYER -- 7,562,878 97,478,435
PARTICIPANT VOLUNTARY DEPOSIT -- -- 76,542,609
LOAN REPAYMENTS BY PARTICIPANTS'
ACCOUNTS -- $ -- 29,860,040
TRANSFER OF BOOK VALUE STOCK
FUND D TO FUND B -- -- --
INVESTMENT BY OTHER FUNDS (46,092,713) $ -- --
ASSET REALLOCATION -- $ -- (312,160,974)
--------------- --------------- ---------------
TOTAL ADDITIONS 226,100,939 7,562,878 626,605,088
--------------- --------------- ---------------
DEDUCTIONS FROM NET ASSETS
ATTRIBUTED TO
PARTICIPANTS' WITHDRAWALS -- (7,562,878) (148,837,347)
LOANS FROM INDIVIDUAL PARTICIPANTS'
ACCOUNTS -- -- (35,753,039)
DIVESTMENT BY OTHER FUNDS 53,819,954 -- --
--------------- --------------- ---------------
TOTAL DEDUCTIONS 53,819,954 (7,562,878) (184,590,386)
--------------- --------------- ---------------
NET CHANGE DURING YEAR BEFORE
TRANSFERS 279,920,893 -- 442,014,702
PARTICIPANTS' TRANSFERS BETWEEN
FUNDS -- -- --
--------------- --------------- ---------------
NET INCREASE/(DECREASE) 279,920,893 -- 442,014,702
NET ASSETS AVAILABLE FOR PLAN
BENEFITS:
BALANCE AT BEGINNING OF YEAR (279,920,893) -- 2,273,659,452
--------------- --------------- ---------------
BALANCE AT END OF YEAR $ -- -- $ 2,715,674,154
=============== =============== ===============
</TABLE>
See Accompanying Notes to the Financial Statements
8
<PAGE>
THE SAVINGS INCENTIVE PLAN
OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
Notes to the Financial Statements
December 31, 1998 and 1997
1. DESCRIPTION OF THE PLAN
The following brief description of the Savings Incentive Plan of Citibank, N.A.
and Participating Companies (the "Plan") is provided for general information
only. Participants should refer to the Plan document for a more complete
description of the Plan's provisions.
The Plan is a defined contribution plan, as defined in Section 414(i) of the
Internal Revenue Code of 1986, as amended (the "Code"), sponsored by Citibank
and certain affiliates ("Participating Companies"). Citibank is located at 399
Park Avenue, New York, New York 10043. The Plan is subject to the provisions of
the Employee Retirement Income Security Act of 1974 (ERISA).
The Trust Fund
All contributions to the Plan are held in a Trust Fund established under the
Plan and invested in one or more of seven investment funds, as follows: Fund A
(Fixed Income Securities Fund), Fund B (Citigroup Common Stock Fund), Fund C
(Diversified Equity Investment Fund), Fund E (Capital Preservation Fund), Fund F
(Small Cap Fund), Fund G (International Securities Fund) and Fund H (Lifestyle
Fund - Portfolio 200, Portfolio 300, Portfolio 400, Portfolio 500). (Former Fund
D was terminated effective June 30, 1997 and participant account balances
thereunder were reinvested in accordance with instructions from participants.
Account balances for which participants provided no instructions were reinvested
in Fund B.)
Employer Awards
The annual contributions to the Plan by the Participating Companies are
allocated as of the end of the year among participants on the basis of their
covered basic compensation as defined by the Plan. Participants credited with at
least one year's service and employed on December 31 of that year receive a
basic award ("Basic Contribution") equal to 3% of their annual covered basic
compensation. Participants may elect to receive the Basic Contribution in cash
or defer and invest all or part of it in one or more of the Plan's investment
funds (each, a "Fund"). If the participant chooses to defer and invest all or
part of the Basic Contribution, subject to various limitations under the Code,
such amount is matched by a supplemental award ("Supplemental Contribution").
Each participant choosing such an election must also elect that the amount of
the Basic Contribution deferred and the Supplemental Contribution be invested by
Citibank as trustee of the Plan (the "Trustee") in Funds A, B, C, E, F, G or H
in multiples of 1% of the total amount. Any participant whose employment is
terminated during the Plan Year for reasons other than death, severance, or
retirement is not eligible for a Basic Contribution for that year. The 3% Basic
Contribution is subject to Federal Insurance Contributions Act tax (Social
Security) withholding whether the award is taken in cash or is deferred. For
1997 and 1998, the Code has limited the compensation under the Plan on which
contributions can be based to $160,000.
9
<PAGE>
Prior to the termination of Fund D on June 30, 1997, the following restrictions
were in effect. Effective January 1, 1988, no further investment elections into
Fund D (including Basic and Supplemental Contributions, and Deferred Salary
Account "DSA" Contributions) were permitted. Participants with investments in
Fund D were not permitted to (1) transfer money into Fund D; (2) make new
investment elections into Fund D; (3) make lump-sum deposits into Fund D; (4)
make accelerated loan repayments into Fund D (for loans granted on or prior to
December 31, 1987); or (5) make any loan repayments into Fund D (for loans
granted on January 1, 1988 and thereafter). However, Fund D participants were
permitted to (1) elect to transfer out of Fund D; (2) withdraw from Fund D; or
(3) take loans from investments in Fund D, as of any applicable quarterly
valuation date. Remaining balances as of June 30, 1997 in Fund D were
transferred to Fund B.
Deferred Salary Account Contributions
Regardless of whether a participant has satisfied the eligibility requirements
for the Basic Contribution, the participant may open a Deferred Salary Account
and elect to contribute a portion of his or her annual covered basic
compensation, before federal and some state and local taxes are withheld, to the
Trust Fund ("DSA Contributions"). The Plan permits participants who are not
"highly compensated employees" as defined in the Code to make DSA Contributions
to the Plan in an amount not in excess of 18% of a participant's basic
compensation for the calendar year. As of December 31, 1998, a highly
compensated employee is defined as a participant with annual compensation in
excess of $80,000. Under the Code, Basic Contributions and Deferred Salary
Account Contributions are considered elective deferrals and are subject to
limitations imposed by the Code as described below.
For the years ended December 31, 1998 and 1997, Deferred Salary Account
Contributions amounted to $79,420,265 or 86% and $66,628,183 or 87%
respectively, of total employee voluntary contributions.
Limitations on Basic Contributions and Deferred Salary Account Contributions
Under the Code, for 1997 and 1998 the maximum amount of deferred Basic
Contributions and Deferred Salary Account Contributions permitted is $9,500 and
$10,000, respectively, for each participant. Any deferred Basic or Deferred
Salary Account Contributions that may not be contributed to the Trust Fund
because of the limitation will be returned to the participant as a cash payment.
Supplemental Contributions to the Plan are unaffected by this limitation.
Additional limitations may be imposed on contributions by or on behalf of highly
compensated employees because of rules applicable to the Plan under the Code
which prohibit discrimination in favor of such employees.
The total amount which may be allocated to a participant's account from all
sources (excluding Rollover Contributions) in any Plan Year is limited by
Section 415 of the Code to the lesser of $30,000 (subject to cost-of-living
increases in future years) or 25% of the participant's annual compensation from
the employer.
Rollover Contributions
The Plan accepts Rollover Contributions from employees. Such contributions
include employee accounts from the qualified plans of their former employers, or
from Individual Retirement Accounts (IRAs) or tax-qualified annuities containing
solely Rollover Contributions from the qualified plans of their former
employers. For the years ended December 31, 1998 and 1997 Rollover Contributions
accounted for $12,512,752 or 14% and $9,914,426, or 13% respectively, of total
employee voluntary contributions.
10
<PAGE>
Vesting
The Plan is an individual account type plan, in which participants are always
100% vested. If the Plan is terminated, each participant's interest will become
payable in full according to Plan provisions.
Withdrawals
In the case of retirement, a participant may elect to receive his or her
interest in a single distribution (in cash, or in the case of Fund B, in shares
of Citigroup Common Stock) or in equal annual installments, commencing within
the later of five years from the date of retirement or age 65, but not later
than April 1st of the calendar year immediately following the later of the year
in which the participant retires or the year in which the participant attains
age 70 1/2, over a period of time not to exceed the lesser of 15 years or the
life expectancy of the participant and the participant's designated beneficiary.
A participant who terminates employment for any other reason can elect to
receive his or her interest in a single distribution of cash or stock at any
time following the date of termination, but no later than age 65.
In the case of death of the participant, if the beneficiary is the surviving
spouse, such beneficiary may elect to receive the participant's interest
beginning no later than April 1st of the year immediately following the year in
which the participant would have attained age 70 1/2 over a period of time not
to exceed the lesser of 15 years or the life expectancy of the beneficiary. If
the beneficiary is not the surviving spouse, such distributions shall begin no
later than one year after the death of the participant.
A participant may request a hardship withdrawal from his or her deferred Basic
Contributions and Deferred Salary Account to meet an immediate and heavy
financial need attributable to (1) unreimbursed medical expenses of the
participant, the participant's spouse, children or dependents, (2) the purchase
of a primary residence for the participant, (3) tuition for the next twelve
months of post-secondary education for the participant, the participant's
spouse, children or dependents, (4) payment to avoid eviction from or
foreclosure on the participant's principal residence, (5) expenses in connection
with the unreimbursed loss of the participant's principal residence or necessary
personal property due to natural disaster, (6) payment of funeral expenses for a
member of the participant's immediate family, (7) repairs necessary to preserve
the participant's principal residence and moving expenses in connection with the
purchase of a principal residence, or (8) other hardship or events not
specifically listed above.
In order to satisfy the requirement of an immediate and heavy financial need
which the participant cannot satisfy from other reasonably available sources,
the following conditions must be met: (1) the participant must demonstrate that
the withdrawal is not in excess of the amount of the immediate and heavy
financial need, (2) the participant must make best efforts to satisfy the need
from all other withdrawals, distributions and nontaxable loans available under
the Plan and all other plans maintained by Citibank, (3) the participant will
not be eligible to make any elective contributions to the Plan or contributions
to other plans of Citibank and any employer required under the Code to be
aggregated with Citibank for a period of twelve months following the hardship
withdrawal, and (4) for the period of the participant's taxable year immediately
following the taxable year of the hardship withdrawal, the participant's
elective contributions shall not be in excess of the dollar limit ($9,500 in
1997, and $10,000 in 1998) for the year after the hardship withdrawal, less such
contributions for the taxable year of the hardship withdrawal.
If a participant's account contains sufficient funds, the participant may also
elect to increase the amount of a hardship withdrawal so that the participant
receives an amount approximately equal to the hardship need after subtraction of
an amount to cover federal, state, and local income taxes and penalties
reasonably anticipated to result from the withdrawal.
11
<PAGE>
Withdrawals of pre-1980 employer contributions, subject to a tax penalty
described below, may be made as of each New York Stock Exchange business day.
Withdrawal of the post-1979 employer contributions (including Basic Contribution
and Supplemental Contribution plus Deferred Salary Account Contributions) are
permitted following the attainment of age 59 1/2 or on account of permanent and
total disability.
A participant may withdraw a part or all of his or her Qualified Voluntary
Employee Contributions ("QVEC") and the amount withdrawn will be subject to
federal income taxation as ordinary income unless it is transferred to an IRA or
another employer's tax-qualified retirement plan in a direct trustee-to-trustee
transfer or, alternatively, within 60 days of the participant's actual receipt
of the funds. If the participant has not reached age 59 1/2 or is not disabled,
an additional 10% penalty tax will be imposed.
Effective January 1, 1987, the Tax Reform Act of 1986 repealed the Code
provision that permitted QVECs under the Plan. Any participant who has QVEC
contributions under the Plan may not make any additional QVEC contributions, but
may continue to maintain such account subject to all terms and conditions of the
Plan.
Withdrawals from the Plan which result in taxable income to the participant will
be subject to a 10% penalty tax imposed by the Code unless the withdrawal is
made after the participant attains age 59 1/2 or on account of the participant's
separation from service after age 55, disability or death. Also, no penalty tax
is imposed on a hardship withdrawal for medical expenses which exceed 7.5% of
the participant's adjusted gross income.
Furthermore, an excise penalty tax of 15% is imposed on the aggregate amount by
which taxable payouts and withdrawals from tax-favored retirement programs,
including the Plan, and any IRA, exceed $160,000 in a single year. If in any
single year the payout includes a distribution that qualifies as a lump-sum
distribution under the Code, then the excise tax will apply separately to such
distribution in excess of $800,000. In each case, under current law, this
penalty is repealed for distributions occurring after 1996.
Participants who do not have all of a taxable distribution transferred directly
to another tax-qualified plan or IRA will be subject to mandatory federal income
tax withholding of 20%. Certain taxable distributions are not subject to this
withholding rule including, but not limited to, substantially equal periodic
payments made for a period of ten or more years or for the life (or life
expectancy) of the participant.
Loans
The Plan may make loans to participants from the participants' account balances.
The maximum amount a participant may borrow is the lesser of 50% of the value of
the participant's total account balance or $50,000 reduced by the excess, if
any, of the highest outstanding loan balance in the previous twelve months over
the outstanding balance on the date the loan is made. Effective September 5,
1997, if a participant has invested in more than one Fund, such funds shall be
charged for the amount of the loan on a pro-rata basis. Effective January 1,
1997, participants will be permitted to enter into one Plan loan transaction per
calendar year and to have no more than two Plan loans outstanding at any time.
All employees who enter into new loan agreements (after 1996) and subsequently
leave Citibank will be required to repay their loan within 90 days of their
separation of service or the loan will be deemed a taxable distribution.
Loans, except those for the purchase of the participant's primary residence, are
repaid over a repayment period of up to five years through payroll deductions as
described below, subject to prepayment in full at any time at the option of the
participant. Each loan bears a reasonable rate of interest in line with rates
charged by lenders for similar commercial loans. The Plan loan rate is based on
the commercial 3-year adjustable rate mortgage loan that Citibank charges
customers. Such interest is not tax deductible. Because the participant's
account balance is reduced by the outstanding principal amount of his or her
loan, the outstanding principal amount will not participate in the investment
experience of any of the Funds in the Trust Fund.
12
<PAGE>
For active Plan participants, (i.e., active employees of Participating
Companies), principal and interest of each loan are repaid by deduction each pay
period from such participant's compensation in equal amounts sufficient to fully
amortize such loan over the repayment period. All amounts deducted are
transmitted not less often than monthly and are reinvested in the Funds on the
next valuation date, based on the loan amount taken from such Funds, unless the
participant elects to have the repayments invested in another Fund.
The amount of interest included in "Loan Repayments by Participants" in 1998 and
1997 were as follows:
1998 1997
---- ----
Fund A $ 316,982 $ 275,000
Fund B 2,117,893 1,755,901
Fund C 927,072 790,984
Fund D - 5,589
Fund E 1,631,274 1,792,900
Fund F 459,129 436,535
Fund G 326,912 321,128
Fund H 664,525 675,383
----------- ----------
Total $ 6,443,787 $6,053,420
=========== ==========
The amount of loans outstanding from the Plan on December 31, 1998 and 1997 were
$84,970,022 and $82,775,775 respectively.
Participants
There were 51,611 and 48,707 participants in the Plan at December 31, 1998 and
1997, respectively.
2. PLAN CHANGES
Effective August 1, 1997, the Plan changed its process of determining the value
of its investments, and accordingly, the per unit purchase cost of the Plan's
various investment funds. Previously, the Plan's assets and the per unit cost of
its investment funds had been determined once per month. Under the current
valuation process, the fair values of the Plan's assets are determined each New
York Stock Exchange business day. The per unit purchase cost of each of the
Plan's investment funds is also determined each New York Stock Exchange business
day based on the fair value of each fund's net assets. Upon this conversion,
participant units were adjusted as necessary to ensure that there was no change
to the total value of the participants' accounts.
In addition, the Plan changed several of its investment fund options as follows:
(1) Effective June 30, 1997, Fund D was closed. Participants were able to
transfer their account balances in Fund D to any other investment fund.
(2) Effective August 1997, Fund E changed from a guaranteed rate fund which
invested primarily in time deposits to a capital preservation investment
account investing primarily in guaranteed investment contracts and
synthetic investment contracts issued by high-quality financial
institutions. Fund E is not considered a mutual fund or collective
investment trust, but it represents an investment account managed by
Citibank N.A. (Global Asset Management).
(3) Effective July 1997, Fund F changed its activity from investing in small
capitalization U.S. equity securities to investing in a collective
employee benefit trust fund ("CEBT") managed by State Street Global
Advisors.
(4) Effective September 1997, Fund G changed from investing in an
international equity fund managed by Citibank N.A. (Global Asset
Management ) to investing primarily in two separate registered mutual
funds. Dimensional Fund Advisors, Inc. serves as investment advisor.
13
<PAGE>
(5) Effective August 1997, Fund H changed from an asset allocation of other
Plan investment funds to an investment account investing in various
vehicles to match the performance of the Citiselect Lifestyles 300
registered investment company. Fund H is a separate investment account
managed by Citibank N.A. (Global Asset Management).
(6) Effective April 1, 1998, three new portfolios (Portfolio 200, Portfolio
400 and Portfolio 500) were added to the Fund H Lifestyle Funds to
complement Portfolio 300 by providing diversified alternatives with varied
degree of risk.
On October 8, 1998, Citicorp, the parent company of Citibank, N.A., merged with
and into a newly formed, wholly owned subsidiary of Travelers Group Inc.
("Travelers") and, subsequently changed its name to Citigroup. Under the terms
of the Merger, 1.13 billion shares of Citigroup common stock were issued in
exchange for all the outstanding shares of Citicorp common stock based on an
exchange ratio of 2.5 shares of Citigroup common stock for each share of
Citicorp common stock. Each share of Travelers common stock automatically
represents one share of Citigroup common stock. Following the exchange, former
shareholders of Citicorp and Travelers each own approximately 50% of the
outstanding common stock of Citigroup. Each outstanding share of Citicorp
preferred stock was converted into one share of a corresponding series of
preferred stock of Citigroup having substantially identical terms. Consequently,
Fund B was renamed " Citigroup Common Stock Fund".
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following are the significant accounting policies followed by The Savings
Incentive Plan of Citibank, N.A. and Participating Companies (as Amended and
Restated) (the "Plan" or "SIP"):
Basis of Accounting and Presentation. The accompanying financial statements have
been prepared on the accrual basis of accounting and in accordance with the
financial reporting requirements of the Employee Retirement Income Security Act
of 1974, as amended ("ERISA").
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 reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those estimates, and will be reported
subsequently, if applicable.
Investments. Plan investments are stated at fair value, except for investment
contracts which are stated at face value. Stocks and bonds traded on national
securities exchanges are valued at their closing market prices; when no trades
are reported, they are valued at the most recent bid quotation, securities
traded in the over-the-counter market are valued at their last sale or bid
price. Investments in Citicorp Book Value Common Stock (Fund D) held by the Plan
until June 30, 1997 were valued at book value per share as of the end of each
calendar quarter. U.S. Government and Agency Obligations are valued based upon
bid quotations for identical or similar obligations. Investments in the
Commingled Employee Benefit Trust Funds ("CEBTs") of Citibank, N.A.
("Citibank"), Chancellor Trust Company, and State Street Bank are valued at
values per unit reported by such CEBTs, whose valuation methods are similar to
the Plan. The investments in the Dimensional Investment Group Inc.'s Mutual
Funds are reported at their net asset values at year-end.
The Plan enters into transactions whereby securities are purchased under
agreements to resell. Such agreements are carried at purchase price which
normally approximates fair value. The Plan received securities that are treated
as collateral for cash advanced and the market value of such collateral must
equal or exceed the advance at time of purchase. The face amount, reported in
the Supplemental Schedule of Assets Held for Investment Purposes, represents the
face amount of the underlying collateral.
14
<PAGE>
Interest income is recorded on the accrual basis. Dividend income is recorded on
the ex-dividend date.
Securities transactions are recorded on the trade date. Average cost is used to
determine gains and losses on sales of such investments.
Securities purchased or sold near year-end may result in payments on these
securities not being made or received until after the Plan's year-end. A "Plan
Year" is a calendar year. The amounts of such payments are recorded as payables
or receivables as of year-end.
The Plan invests in various Funds. The amounts allocated to each Fund may be
invested directly in the permitted investments for such Fund, or may be invested
in such permitted investments through the medium of any investment vehicle
permitted under applicable law. The Trustee may, in its discretion, temporarily
invest any part of the amounts allocated to the Trust Fund or to any particular
Fund in short-term investments selected by it or through the medium of a
commingled employee benefit trust fund established and maintained for such
purpose. The Trustee may, for the purpose of remaining fully invested and
maintaining liquidity to make distributions from the Trust Fund, trade in
financial options and futures (including index options and options on futures)
and contracts for the exchange of interest rates, investment performance,
currencies or other notional principal in such form and upon such terms as the
Trustee or a duly appointed investment manager may direct.
Securities, cash, and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollars at the prevailing market rates in
effect on the valuation date. Income and expenses are translated at the exchange
rates prevailing at the date of the transaction. Gains and losses on foreign
currency transactions, translations of foreign currency balances, and forward
foreign currency contracts, other than investment transactions and translations,
are included in net gain/loss on currency translation. Currency gains and losses
on investment transactions and translations are included in realized
gains/losses from security transactions and change in unrealized
appreciation/depreciation of investments.
4. FUNDING POLICY
The Participating Companies have entered into a Declaration of Trust with the
Trustee providing for the establishment, management, investment and reinvestment
of the Trust Fund. Payments to the Trustee are made by the Participating
Companies as specified by the Plan provisions.
5. FEDERAL INCOME TAXES
The Trust Fund is exempt from federal income tax. The Plan received its most
recent qualification letter from the IRS on March 27, 1996 stating that the
Plan, as then designed, satisfies the requirements applicable to tax-qualified
retirement plans under the Code and, accordingly, that the related trust is
tax-exempt. The Plan has been amended since receiving the qualification letter.
However, the Plan administrator and the Plan's tax counsel believe that the Plan
is currently designed and is being operated in compliance with the applicable
requirements of the Code. Therefore, no provision for income taxes has been
included in the Plan's financial statements.
Participants who do not elect to defer their Basic Contributions are subject to
federal income tax at ordinary income tax rates upon distribution to them of
their Basic Contributions. Participants are not subject to federal income tax on
their deferred Basic and Supplemental Contributions and their Deferred Salary
Account Contributions until such time as said amounts are distributed to them.
The Basic Contributions and Deferred Salary Account Contributions are subject to
withholding for Social Security. Under Section 404 of the Code, the
Participating Companies are entitled to deduct their contributions under the
Plan for federal income tax purposes.
15
<PAGE>
6. EXPENSES
Administrative expenses are paid by the Participating Companies.
7. INVESTMENTS
The Plan held the following individual investments, whose aggregate fair value
equaled or exceeded 5% of the Plan's net assets at December 31, 1998 and 1997:
1998 1997
---- ----
Citigroup Market Value Common Stock $1,037,777,697 $996,669,940
Chancellor Trust Co. CEBT, Index 500 Fund 601,511,555 510,725,146
State Street Bank and Trust Company CEBT, Russell
2000 Fund N/A* 153,581,218
* The Plan's investment in the State Street Bank and Trust Company's Russell
2000 Fund did not exceed the 5% threshold.
16
<PAGE>
During 1998, the Plan's investments (including investments purchased, sold and
held during the year) appreciated in fair value by $141,130,649 and during 1997
the Plan's investments appreciated in fair value by $662,137,540, as follows:
Net Realized and Unrealized Appreciation (Depreciation) in Fair Value
1998 1997
---- ----
Fund A
U.S. Government and Agency Obligations $ 1,639,125 $ 1,295,349
Corporate Bonds 707,649 618,564
Foreign Bonds 98,967 3,043
------------ ------------
2,445,741 1,916,956
------------ ------------
Fund B
Citigroup Common Stock (8,149,482) 183,191,025
------------ ------------
Fund C
U.S. Government and Agency Obligations 99,570 1,159
Commingled Trust Funds 133,740,255 151,755,422
------------ ------------
133,839,825 151,756,581
------------ ------------
Fund D
Citicorp Book Value Common Stock - 1,760,705
------------ ------------
Fund E
Investment Contracts 9,831 325
------------ ------------
Fund F
Commingled Trust Funds (6,487,025) 9,726,446
------------ ------------
Fund G
Mutual Funds 11,161,179 1,564,451
------------ ------------
Fund H
Separate Investment Portfolio 8,310,580 40,027,399
------------ ------------
Total $141,130,649 $389,943,888
------------ ------------
Investment in other Funds of the
Savings Incentive Plan - 272,193,652
------------ ------------
Net Realized and Unrealized Appreciation
in Fair Value of the Plan Assets $141,130,649 $662,137,540
============ ============
17
<PAGE>
The Plan has a number of Guaranteed Investment Contracts issued by insurance
companies and banks at fixed and variable rates carried at contract value. The
contract value represents contributions made under the contract less any
participant-directed withdrawals plus accrued interest, which had not been
received from the issuer, at the contract rate.
The Plan also has Synthetic Guaranteed Investment Contracts ("Synthetic GICs")
which, in the aggregate, are carried at contract value which consists of cash,
fixed income securities valued at fair value, accrued interest on the fixed
income securities, and a wrapper contract valued at the difference between the
contract value and fair value of the fixed income securities plus accrued
interest on the fixed value liquidity agreement fee. The interest rate is a
function of the relationship between the contract value and the value of the
underlying assets. The interest rate is reset periodically by the issuer and
cannot be less than zero. The interest rate disclosed on the statement of
investments represents the rate in effect on December 31, 1998. The underlying
assets, the wrapper contract, and the accrued interest receivable are shown in
the aggregate on the statement of net assets and by contract on the statement of
investments. These contracts are summarized below:
Maturity Contract
Investment Contracts Date Rate Contract Value Fair Value
-------------------- ---- ---- -------------- ----------
Guaranteed Investment Contracts
AIG Life 12/31/02 6.160% $31,931,563 $31,931,563
CDC Capital Inc. 9/30/02 6.260 15,113,630 15,113,630
CDC Capital Inc. 8/15/03 6.400 20,000,000 20,000,000
John Hancock 9/30/01 6.390 25,927,094 25,927,094
John Hancock 1/2/03 6.330 10,665,233 10,665,233
John Hancock 1/2/03 6.140 9,308,553 9,308,553
Metropolitan Life 9/30/00 6.250 23,530,956 23,530,956
Metropolitan Life 7/1/02 6.100 16,542,902 16,542,902
New York Life 4/1/02 6.470 30,410,391 30,410,391
New York Life 7/1/02 6.220 6,305,481 6,305,481
Principal Mutual 9/30/02 6.490 30,538,358 30,538,358
Principal Mutual 6/30/01 5.850 14,658,302 14,658,302
------------ -----------
Subtotal 234,932,463 234,932,463
------------ -----------
Synthetic Guaranteed Investment Contracts
Deutsche Bank *No stated maturity 6.640 65,898,559 65,898,559
National Westminster
Bank No stated maturity 6.558 26,909,853 26,909,853
Rabobank No stated maturity 6.650 73,749,552 73,749,552
UBS No stated maturity 6.640 55,281,702 55,281,702
------------ -----------
Subtotal 221,839,666 221,839,666
------------ -----------
Total $456,772,129 456,772,129
----- ============ ===========
* The maturity dates for the Synthetic GICs have not been specified by the
parties to the contracts. Certain conditions must occur or the parties may
mutually agree to a maturity date at some future time.
18
<PAGE>
8. INVESTMENT FUND OPTION INFORMATION-LIFESTYLE FUNDS
The Plan offers participants investment options similar to the retail offering
of Citiselect portfolios, which provide a diversified approach to portfolio
management. Each individual investment option in the Lifestyle 200, 300, 400 &
500 portfolios have a different investment risk profile that is monitored by
Citibank N.A. (Global Asset Management). At December, 31, 1998, the investment
percentage allocations were as follows:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Lifestyle Lifestyle Lifestyle Lifestyle
Asset Class 200 300 400 500 Total
- --------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Large Cap Growth 2.82424396 92.76380126 2.10969750 2.30225728 100
- --------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
Large Cap Value 3.23910182 91.46343634 2.66660197 2.63085988 100
- --------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
Small Cap Growth 3.26677991 88.19032568 3.86481999 4.67807442 100
- --------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
Small Cap Value 3.38827880 87.63150706 4.14620670 4.83400744 100
- --------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
International Equity 1.98667941 86.49342126 4.54254812 6.97735121 100
- --------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
Domestic Fixed Income 4.17366139 95.30340407 0.52293455 - 100
- --------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
International Bond 3.84965388 92.62919551 2.31870322 1.20244739 100
- --------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
Short-Term 19.58357515 75.84407571 2.02447651 2.54787263 100
- --------------------------------------------------------------------------------------------
</TABLE>
Participant - Directed information as of and for the year ended December 31,
1998 for the Lifestyle Funds were as follows:
<TABLE>
<CAPTION>
Fund H Fund H Fund H Fund H
Lifestyle Lifestyle Lifestyle Lifestyle Total
Fund Fund Fund Fund Lifestyle
200 300 400 500 Funds
----------------------------------------------------------------------------------
INVESTMENTS AT FAIR VALUE:
<S> <C> <C> <C> <C> <C>
SEPARATE INVESTMENT PORTFOLIO $ 12,681,412 $ 287,420,914 $ 7,610,523 $ 7,437,847 $315,150,696
-------------- --------------- ------------- ------------- ------------
TOTAL INVESTMENTS 12,681,412 287,420,914 7,610,523 7,437,847 $315,150,696
---------- ----------- --------- --------- ------------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS 11,816,474 267,110,837 7,367,502 7,699,356 $293,994,169
---------- ----------- --------- --------- ------------
PARTICIPANT'S UNITS IN TRUST FUND 1,151,008 25,092,610 768,112 844,617
--------- ---------- ------- -------
UNIT VALUES IN TRUST FUND 10.2662 10.6450 9.5917 9.1158
----------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
INVESTMENT FUND OPTION INFORMATION-LIFESTYLE FUNDS (cont'd)
<TABLE>
<CAPTION>
Fund H Fund H Fund H Fund H
Lifestyle Lifestyle Lifestyle Lifestyle Total
Fund Fund Fund Fund Lifestyle
200 300 400 500 Funds
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
INVESTMENT INCOME:
NET REALIZED AND UNREALIZED
APPRECIATION/(DEPRECIATION) IN
FAIR VALUE OF INVESTMENTS $ 34,176 $ 9,802,737 $(611,440) $(914,893) $ 8,310,580
DIVIDENDS 29,170 1,834,037 53,253 65,223 1,981,683
INTEREST 261,662 8,192,647 92,709 43,735 8,590,753
------- --------- ------ ------ ---------
TOTAL INCOME $ 325,008 $19,829,421 $(465,478) $(805,935) $ 18,883,016
CONTRIBUTIONS
EMPLOYER 383,750 10,293,929 471,885 608,266 11,757,830
PARTICIPANT VOLUNTARY DEPOSIT 508,088 9,434,847 917,951 1,189,679 12,050,565
LOAN REPAYMENTS - BY PARTICIPANTS' ACCOUNTS 45,632 3,654,847 86,556 93,322 3,880,357
------ --------- ------ ------ ---------
TOTAL ADDITIONS $ 1,262,478 $43,213,044 $1,010,914 $1,085,332 $46,571,768
----------- ----------- ---------- ---------- -----------
DEDUCTIONS FROM NET ASSETS
TO NET
PARTICIPANTS' WITHDRAWALS (156,440) (16,746,711) (1,156,689) (140,182) (18,200,022)
LOAN FROM INDIVIDUAL
PARTICIPANTS' ACCOUNTS (118,099) (3,969,970) (74,176) (149,158) (4,311,403)
--------- ----------- -------- --------- -----------
TOTAL DEDUCTIONS $ (274,539) $(20,716,681) $(1,230,865) $(289,340) $(22,511,425)
----------- ------------- ------------ ---------- -------------
NET CHANGE DURING YEAR BEFORE
TRANSFERS 987,939 22,496,363 (219,951) 795,992 24,060,343
PARTICIPANTS' TRANSFERS BETWEEN FUNDS 10,828,535 (63,615,081) 7,587,453 6,903,364 (38,295,729)
---------- ------------ --------- --------- ------------
NET INCREASE/(DECREASE) 11,816,474 (41,118,718) 7,367,502 7,699,356 (14,235,386)
NET ASSETS AVAILABLE FOR PLAN BENEFITS
BALANCE AT BEGINNING OF YEAR - 308,229,555 - - 308,229,555
------------- ------------ ---------- ---------- ------------
BALANCE END OF YEAR $ 11,816,474 $267,110,837 $7,367,502 $7,699,356 $293,994,169
============= ============ ========== ========== ============
</TABLE>
20
<PAGE>
9. FUTURES CONTRACTS
In order to hedge against a decline in the value of its securities or increase
in the prices of securities it intends to purchase at a later date, or for
investment purposes, the Plan may buy and sell futures contracts. From an
investment perspective, the Plan may purchase futures contracts to gain exposure
to market changes as it may be more efficient or cost-effective than actually
buying securities.
Futures contracts are contracts for delayed delivery of securities or money
market instruments in which the seller agrees to make delivery at a specified
future date of a specified instrument, at a specified price or yield. Upon
entering into a futures contract, the Plan is required to deposit either cash or
securities in an amount (initial margin) equal to a certain percentage of the
contract value. Subsequent payments (variation margin) which equal to the daily
changes in contract value are recorded as realized gains and losses.
Risks of entering into futures contracts include the possibility that there may
be an illiquid market and that changes in the value of the contract may not
correlate with the value of the underlying securities.
At December 31, 1998 and 1997, the Plan had open positions in futures contracts
as disclosed below:
Equity Futures
At December 31, 1998, the Plan held 39 Standard & Poor's 500 Index Futures
Contracts. The size of a contract is 500 times the value of the Standard &
Poor's 500 Index. As of December 31, 1998, the variation margin receivable of
$60,337 represented one day's settlement. At December 31, 1998, the Plan
pledged, as collateral on the Futures Contracts, United States Treasury Bills
amounting to $2,100,000.
At December 31, 1997, the Plan held 32 Standard & Poor's 500 Index Futures
Contracts. The size of a contract is 500 times the value of the Standard &
Poor's 500 Index. As of December 31, 1997, the variation margin payable of
$1,600 represented one day's settlement. At December 31, 1997, the Plan pledged,
as collateral on the Futures Contracts, United States Treasury Bills amounting
to $600,000.
Treasury Bonds Futures
At December 31, 1998, the Plan held 25 United States Treasury Long Bond Futures
Contracts. As of December 31, 1998, the variation margin receivable of $3,125
represented one day's settlement. At December 31, 1998, the Plan pledged, as
collateral on the Futures Contracts, United States Treasury Bills amounting to
$60,000.
At December 31, 1997, the Plan held 16 United States Treasury Long Bond Futures
Contracts. As of December 31, 1997, the variation margin payable of $9,500
represented one day's settlement. At December 31, 1997, the Plan pledged, as
collateral on the Futures Contracts, United States Treasury Bills amounting to
$70,000.
21
<PAGE>
10. INVESTMENTS IN FORWARD FOREIGN CURRENCY CONTRACTS
Forward foreign currency contracts are valued at market forward rates obtained
from independent market quotations and unrealized appreciation and depreciation
is recorded. The Plan will realize a gain or loss upon the closing or settlement
of the forward transaction.
A forward foreign currency contract obligates one party to purchase and the
other party to sell a specific currency at a set price on a future date. In
order to hedge against foreign currency exchange rate risks on foreign currency
denominated transactions and holdings or for investment purposes, the Plan may
buy or sell forward foreign currency contracts. At December 31, 1998, the Plan
had open positions in forward foreign currency exchange contracts as disclosed
below:
<TABLE>
<CAPTION>
Commitments to Sell
Settlement Foreign U.S. Dollars Unrealized
Counterparty Curr. Date Currency Cost Fair Value (Gain)/Loss
------------ ----- ---- -------- ---- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Royal Bank of Canada CAD 1/12/99 $ 5,128,000 $3,344,039 $ 3,355,004 $ (10,965)
Bank of America DEM 1/5/99 313,084 187,419 187,903 (484)
Bank of America DKK 1/25/99 1,090,000 168,288 171,383 (3,095)
Bank of America DKK 1/25/99 644,000 99,981 101,258 (1,277)
Bank of America ESP 1/7/99 90,379,110 635,577 636,159 (582)
Morgan Guarantee Trust Co ESP 2/18/99 576,448,000 4,111,759 4,066,197 45,562
Bank of America ESP 2/18/99 938,265 6,639 6,619 20
Deutsche Bank AG ESP 2/18/99 85,044,000 601,836 599,890 1,946
Morgan Guarantee Trust Co FRF 1/27/99 1,948,000 351,311 348,870 2,441
State Street Bank and Trust HKD 2/26/99 7,688,295 953,883 991,955 (38,072)
State Street Bank and Trust HKD 2/26/99 1,968,204 247,498 253,940 (6,442)
State Street Bank and Trust HKD 4/29/99 6,666,400 850,019 858,970 (8,951)
Bankers Trust JPY 2/8/99 370,230,000 3,109,347 3,291,915 (182,568)
Bank of America JPY 2/24/99 216,156,000 1,842,919 1,926,021 (83,102)
Bank of America NOK 1/14/99 1,248,000 167,485 164,026 3,459
Bank of America NZD 1/5/99 35,622 18,720 18,747 (27)
Deutsche Bank AG NZD 1/8/99 717,000 354,230 377,339 (23,109)
Morgan Guarantee Trust Co NZD 1/8/99 350,000 187,467 184,196 3,271
Royal Bank of Canada NZD 1/14/99 265,000 141,861 139,477 2,384
Bank of America NZD 1/15/99 9,500,000 4,948,075 5,000,189 (52,114)
Bank of America NZD 1/15/99 635,000 331,851 334,223 (2,372)
Credit Suisse/First Boston NZD 2/22/99 1,144,000 598,037 602,404 (4,367)
Royal Bank of Canada NZD 2/22/99 95,000 49,616 50,025 (409)
Merrill Lynch & Co NZD 3/22/99 1,176,000 904,958 903,715 1,243
Royal Bank of Canada SEK 1/21/99 7,228,000 930,029 890,431 39,598
-----------
Total Commitments to Sell: $ ( 318,012)
===========
</TABLE>
22
<PAGE>
10. INVESTMENTS IN FORWARD FOREIGN CURRENCY CONTRACTS (continued)
Commitments to Buy:
<TABLE>
<CAPTION>
Settlement Foreign U.S. Dollars Unrealized
Counterparty Curr. Date Currency Cost Fair Value Gain/(Loss)
------------ ----- ---- -------- ---- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Deutsche Bank ATS 1/20/99 10,023,000 836,086 855,913 19,827
Bank of America AUD 1/14/99 460,000 294,216 281,921 (12,295)
Merrill Lynch & Co AUD 1/14/99 527,000 331,515 322,983 (8,532)
Morgan Guarantee Trust BEL 1/11/99 79,165,000 2,328,382 2,291,532 (36,850)
Morgan Guarantee Trust CAD 2/11/99 8,938,000 5,800,789 5,848,049 47,260
Deutsche Bank AG CAD 2/12/99 86,000 55,563 56,269 706
Bank of America CHF 2/16/99 604,000 452,096 441,857 (10,239)
Morgan Guarantee Trust DEM 2/3/99 2,750,000 1,642,477 1,652,786 10,309
Bank of America DEM 2/8/99 4,686,000 2,812,860 2,817,072 4,212
Morgan Guarantee Trust DEM 2/8/99 715,000 434,123 429,835 (4,288)
Bank of America DEM 2/8/99 313,000 187,699 188,166 467
Bank of America ESP 2/18/99 90,400,000 637,113 637,671 558
Bank of America FIM 1/26/99 2,815,000 544,109 552,790 8,681
Bank of America FRF 1/27/99 38,500,000 6,852,363 6,895,009 42,646
Deutsche Bank AG FRF 1/27/99 1,175,000 209,664 210,432 768
Deutsche Bank AG GBP 1/20/99 1,104,000 1,860,240 1,832,980 (27,260)
Deutsche Bank AG IEP 1/15/99 202,000 297,602 300,644 3,042
Deutsche Bank AG ITL 1/14/99 11,157,488,000 6,777,600 6,752,533 (25,067)
Deutsche Bank AG ITL 2/8/99 306,088,000 186,217 185,472 (745)
Bank of America JPY 2/8/99 1,750,310,000 15,103,071 15,562,955 459,884
Deutsche Bank AG JPY 2/24/99 449,410,000 3,941,311 4,004,391 63,080
Merrill Lynch & Co. NLG 1/25/99 4,943,000 2,617,754 2,634,237 16,483
Deutsche Bank AG NLG 1/25/99 128,000 68,034 68,214 180
Merrill Lynch & Co NOK 1/7/99 18,037,000 2,410,719 2,372,189 (38,530)
Royal Bank of Canada NOK 1/14/99 4,351,000 587,124 571,857 (15,267)
Morgan Guarantee Trust NOK 1/14/99 2,948,000 395,084 387,459 (7,625)
Bank of America PTE 1/13/99 58,935,000 345,457 345,572 115
Bank of America SEK 1/21/99 5,654,000 725,681 696,527 (29,154)
Credit Suisse/First Boston SEK 1/21/99 4,950,000 617,453 609,800 (7,653)
Bank of America SEK 1/22/99 10,496,000 1,362,728 1,293,079 (69,649)
Merrill Lynch & Co. SEK 1/22/99 7,505,000 872,849 868,541 (4,308)
Bank of America SEK 1/29/99 5,800,000 723,770 714,761 (9,009)
--------
Total Commitments to Buy: $371,747
========
</TABLE>
As of December 31, 1997, the Plan had open positions to sell foreign forward
currency contracts in various denominations in exchange for $14,122,717, whose
value at December 31, 1997 was $13,807,915 resulting in a loss of $314,802.
Additionally, the Plan had open positions to buy forward foreign currency
contracts in various denominations in exchange for $73,825,584 whose value at
December 31, 1997 was $70,489,084 resulting in a loss of $3,336,500.
11. TERMINATION OF THE PLAN
Although it has not expressed any intent to do so, Citibank has the right under
the Plan to discontinue its contributions at any time and to terminate the Plan
subject to the provisions of ERISA.
23
<PAGE>
12. SUBSEQUENT EVENTS
Approved March 1, 1999, to be effective January 1, 2000, the Citibank Savings
Incentive Plan (SIP) will be replaced with the Citibuilder 401(k) Plan. The 1999
company contribution to be paid in January 2000 will be under the Citibuilder
401 (k) Plan. The following is a brief description of the amendments.
Employer Contributions
Basic and Supplemental Employer Contributions as described under "Description of
the Plan - Employer Awards" will be replaced with a Citigroup contribution of up
to 3% of Total Employee Compensation. This contribution will be made to the
Citigroup Common Stock Fund within the Plan. Total Compensation will include
annual base pay, bonuses, shift differentials, incentives, commissions and
overtime paid in that year. The maximum compensation on which a contribution
will be based is the IRS limit of $160,000. Employees whose total compensation
is less than $50,000 will receive a company contribution without having to make
deferred salary account (DSA) contributions. For employees whose total
compensation is at least $50,000 but less than $250,000 there will be no
matching company contribution unless the employee makes DSA contributions. For
1999 only, employees are not required to make DSA contributions to obtain the
company contribution. The company contribution will not be subject to Federal
Insurance Contributions Act tax (Social Security) withholdings. The company
contribution funds will be restricted from transfer, hardship withdrawals and
loans until age 55. These contributions will be included (if vested) in
determining the amount available for a loan.
For employees hired after December 31, 1998, future company contributions made
to their 401(k) account and earnings on these contributions will vest after five
years of service. These monies will be zero percent vested until that time.
Prior service with Citibank will be counted towards the 5 year vesting
requirement.
Employee Contributions
Voluntary employee contributions (DSA) will be calculated on total compensation
effective 1/1/2000. The available deferral percentages will be 1-20%
(currently 1-18%) for non-highly compensated employees and 9% (currently the
same) for highly compensated employees.
Fees
Fees equal to approximately 0.3% will be deducted from each participant's
balance effective 1/1/2000. The plan will allow for the following plan expenses:
o Trustee and custodian fees and other expenses related to investment and
management of the plan assets
o Fee and charges of vendors for participant data maintenance and
transaction processing; and
o Production of disclosure documents and similar items.
24
<PAGE>
Schedule I-A
THE SAVINGS INCENTIVE PLAN
OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
Fund A
(Fixed Income Securities Fund)
<TABLE>
<CAPTION>
Maturity Principal Fair Value
Rate Date Amount Cost 12/31/98
------ -------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C>
U.S. Government & Agency Obligations
Federal Home Loan Mortgage 5.750% 7/15/03 1,600,000 $ 1,622,750 $ 1,641,248
Federal Home Loan Mortgage 7.500% 4/15/03 1,255,000 1,253,627 1,277,352
Federal Home Loan Mortgage 4.750% 12/14/01 2,000,000 1,994,688 1,991,880
Federal National Mortgage 6.500% 12/l/99 2,000,000 2,027,500 2,028,120
Federal National Mortgage 7.000% 12/1/99 2,500,000 2,553,906 2,553,125
Federal National Mortgage 6.400% 5/2/01 1,100,000 1,098,471 1,132,142
Federal National Mortgage 5.750% 4/15/03 1,650,000 1,724,167 1,693,824
Federal National Mortgage 5.750% 6/15/05 2,000,000 2,060,000 2,065,000
Federal National Mortgage 4.625% 10/15/01 3,000,000 2,991,630 2,979,360
Federal National Mortgage 6.500% 11/1/12 1,282,519 1,280,314 1,300,551
Federal National Mortgage 6.500% 11/1/12 452,923 452,144 459,291
Federal National Mortgage 6.500% 11/1/12 373,666 373,024 378,920
Federal National Mortgage 6.500% 8/1/12 34,710 34,650 35,219
Government National Mortgage Assn. 6.500% 12/15/99 1,600,000 1,631,000 1,630,256
United States Treasury Notes 7.875% 8/15/01 2,400,000 2,563,108 2,587,488
United States Treasury Notes 6.375% 7/15/99 500,000 499,181 504,610
United States Treasury Notes 6.250% 2/15/03 8,900,000 9,283,547 9,411,750
United States Treasury Notes 5.750% 8/15/03 1,750,000 1,734,311 1,827,385
United States Treasury Notes 5.875% 2/15/04 9,800,000 9,989,311 10,339,000
United States Treasury Notes 7.500% 10/31/99 10,000,000 10,359,542 10,223,400
United States Treasury Notes 6.500% 8/15/05 8,700,000 9,469,956 9,561,822
United States Treasury Notes 6.250% 8/31/00 18,000,000 18,344,495 18,455,580
United States Treasury Notes 6.500% 10/15/06 4,500,000 4,828,640 4,991,490
United States Treasury Notes 6.125% 12/31/01 4,000,000 4,030,876 4,162,480
United States Treasury Notes 6.250% 6/30/02 10,500,000 10,853,626 11,021,745
United States Treasury Notes 5.500% 2/15/08 1,100,000 1,138,635 1,165,659
United States Treasury Notes 5.625% 5/15/08 1,500,000 1,612,507 1,600,544
------------ ------------
Total U.S. Government & Agency Obligations $105,805,606 $107,019,241
Corporate Bonds
ABN AMRO Bk. N.V. Chicago Notes 7.125% 6/18/07 1,500,000 $ 1,527,185 $ 1,616,475
American Express Master Treasury Svc. 5.375% 7/15/01 1,630,000 1,580,589 1,630,505
Bayerische Landesbank 5.875% 12/1/08 1,600,000 1,598,672 1,635,840
Bear Stearns Cos. Inc. 6.750% 8/15/00 1,000,000 1,008,220 1,014,600
Bear Stearns Cos. Inc. 6.650% 12/1/04 1,250,000 1,248,600 1,285,812
Branch Banking & Tr. Co. Wilson, N.C. 5.700% 2/1/01 1,000,000 984,320 1,005,200
California Infrastructure 6.320% 9/25/05 1,250,000 1,258,642 1,285,412
Cendant Corp. 7.750% 12/01/03 1,800,000 1,796,904 1,819,206
Comcast Cable Corp. 6.200% 11/15/08 1,650,000 1,648,872 1,680,327
CWABS Inc. 6.525% 2/25/14 400,724 400,724 401,549
Dayton Hudson Credit Card Master 6.250% 8/25/05 1,225,000 1,222,372 1,261,211
</TABLE>
25
<PAGE>
THE SAVINGS INCENTIVE PLAN
OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
Fund A
(Fixed Income Securities Fund)
<TABLE>
<CAPTION>
Maturity Principal Fair Value
Rate Date Amount Cost 12/31/98
------ -------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Dell Computer Corp. 6.550% 4/15/08 1,150,000 1,148,217 1,169,849
El Paso Natural Gas Co. 6.750% 11/15/03 1,000,000 1,016,390 1,033,360
Finova Cap. Corp. 5.875% 10/15/01 1,650,000 1,648,366 1,651,254
First Interstate Bankcorp 9.000% 11/15/04 1,615,000 1,745,282 1,661,156
G.E. Capital Mortgage Services 1.000% 12/25/23 548,059 548,059 546,004
General Electric Capital Corporation 6.290% 12/15/07 1,000,000 996,750 1,022,330
Household Financial Corp. 6.320% 6/21/99 1,000,000 997,700 1,004,470
Ingersoll Rand Company 6.380% 11/19/01 850,000 850,000 869,397
Inter American Dev. Bank 5.750% 2/26/08 1,400,000 1,391,460 1,445,682
International Lease Finance Corp. 6.250% 10/15/00 1,000,000 1,015,770 1,012,690
Lehman Brothers, Inc. 7.250% 10/15/03 1,000,000 996,330 1,029,440
Lockheed Martin Corp. 6.850% 5/15/01 1,000,000 999,190 1,028,750
MBNA Amer. Bank N.A 6.000% 12/26/00 1,000,000 1,000,000 992,110
MBNA Master Card Tr. 5.800% 12/15/05 1,500,000 1,526,015 1,515,000
MCI Communications Corp. 6.500% 4/15/10 1,400,000 1,394,330 1,480,164
Mellon Bank Home Equity 6.520% 7/25/10 1,215,000 1,213,595 1,221,454
Merrill Lynch & Co. 6.180% 4/20/04 1,400,000 1,400,000 1,432,802
Nabisco Inc. 6.000% 2/15/11 1,350,000 1,349,662 1,333,962
News America Holding 7.375% 10/17/08 1,500,000 1,497,590 1,623,855
J.C. Penny Inc. 7.250% 4/01/02 1,000,000 999,580 1,045,650
Raytheon Co. 6.450% 8/15/02 1,000,000 997,200 1,025,620
Sears Roebuck Acceptance Corp. 6.560% 11/20/03 1,000,000 982,120 1,037,390
Sun America, Inc. 6.200% 10/31/99 1,425,000 1,422,783 1,435,901
Toyota Auto Lease Trust 6.350% 4/26/04 1,225,000 1,232,034 1,242,221
Toyota Motor Credit Corp. 5.500% 12/15/08 1,700,000 1,696,634 1,690,990
Travelers Proprty Casualty Corp. 6.750% 4/15/01 1,200,000 1,200,000 1,234,649
UNUM Corp. Notes 6.375% 10/31/00 1,650,000 1,650,000 1,680,442
United Dominion Rlty Inc. 8.125% 11/15/00 1,650,000 1,648,666 1,655,214
Worldcom Inc. 8.875% 1/15/06 1,500,000 1,629,378 1,639,457
------------ ------------
Total Corporate Bonds $ 50,468,201 $ 51,397,400
Foreign Bonds
British Columbia Prov. Canada 5.375% 10/29/08 1,650,000 1,641,437 1,646,799
Cable & Wireless Communications 6.625% 3/6/05 1,450,000 1,445,360 1,461,702
National Australia Bank Ltd. 6.400% 12/10/07 1,500,000 1,501,062 1,521,525
Rodamco N.V. 7.300% 5/15/05 1,500,000 1,580,475 1,595,430
Royal Bank Canada, New York 6.750% 10/24/11 1,000,000 998,440 1,051,270
Tyco Intl. Group 6.375% 6/15/05 1,500,000 1,493,865 1,529,070
United Utils Plc. 6.450% 4/01/08 1,500,000 1,505,475 1,536,510
------------ ------------
Total Foreign Bonds $ 10,166,114 $ 10,342,306
STIF of State Street Bank & Trust Co. 5.364% 8,196,540 8,196,540 8,196,540
------------ ------------
Total Assets Held For Investment - Fund A $174,636,461 $176,955,487
------------ ------------
</TABLE>
26
<PAGE>
Schedule I-A
THE SAVINGS INCENTIVE PLAN
OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
Fund B
(Citigroup Stock Fund)
<TABLE>
<CAPTION>
Maturity Number of Fair Value
Rate Date Units Cost 12/31/98
------ -------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Citigroup Market Value Common stock 20,965,206 $509,266,327 $1,037,777,697
------------ --------------
STIF of State Street Bank & Trust Co. 5.364% 11,127,484 11,127,484 11,127,484
------------ --------------
Total Asset Held for Investment - Fund B $520,393,811 $1,048,905,181
============ ==============
</TABLE>
Fund C
(Diversified Equity Investments Fund)
<TABLE>
<CAPTION>
Number of Fair Value
Units Cost 12/31/98
---------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Comingled Employee Benefit Trusts of
Chancellor Trust Co.
Index 500 Fund 28,101,188 $303,728,854 $601,511,555
------------ ------------
STIF of State Street Bank & Trust Co. 5.364% 30,109,153 30,109,153 30,109,153
------------ ------------
U.S. Government & Agency Obligations
U.S. Treasury Bills 3/18/99 2,100,000 2,076,947 2,081,436
------------ ------------
Total Assets Held for Investment - Fund C $335,914,954 $633,702,144
============ ============
</TABLE>
Fund E
(Capital Preservation Fund)
<TABLE>
<CAPTION>
Maturity Number of Fair Value
Rate Date Units Cost 12/31/98
------ -------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C>
State Street Resale Agreement 5.125% 1/4/99 9,931,000 $ 9,931,000 $ 9,931,000
Guaranteed Investment Contracts
AIG Life Companies 6.160% 12/31/02 31,931,563 31,931,563 31,931,563
CDC Capital Inc. 6.400% 8/15/03 20,000,000 20,000,000 20,000,000
CDC Investment Management Corp 6.260% 9/30/02 15,113,630 15,113,630 15,113,630
John Hancock 6.390% 9/30/01 25,927,094 25,927,094 25,927,094
John Hancock 6.330% 1/2/03 10,665,233 10,665,233 10,665,233
John Hancock 6.140% 1/2/03 9,308,553 9,308,553 9,308,553
Metropolitan Life 6.250% 9/30/00 23,530,956 23,530,956 23,530,956
Metropolitan Life 6.100% 7/l/02 16,542,902 16,542,902 16,542,902
New York Life Insurance 6.220% 7/1/02 6,305,481 6,305,481 6,305,481
</TABLE>
27
<PAGE>
Schedule I-A
THE SAVINGS INCENTIVE PLAN
OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
Fund E
(Capital Preservation Fund)
<TABLE>
<CAPTION>
Maturity Number of Fair Value
Rate Date Units Cost 12/31/98
------ -------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C>
New York Life Insurance 6.470% 4/1/02 30,410,391 30,410,391 30,410,391
Principal Mutual Life 6.490% 9/30/02 30,538,358 30,538,358 30,538,358
Principal Mutual Life 5.850% 6/30/01 14,658,302 14,658,302 14,658,302
------------ ------------
Total Guaranteed Investment Contracts $234,932,463 $234,932,463
Synthetic Guaranteed Investment Contracts
Deutsche Bank 6.640% Not Stated 65,898,559 65,898,559 65,898,559
National Westminster Bank 6.558% Not Stated 26,909,853 26,909,853 26,909,853
Rabobank 6.650% Not Stated 73,749,552 73,749,552 73,749,552
UBS 6.640% Not Stated 55,281,702 55,281,702 55,281,702
------------ ------------
Total Synthetic Guaranteed Investment Contracts $221,839,666 $221,839,666
Total Assets Held For Investment - Fund E $466,703,129 $466,703,129
============ ============
</TABLE>
Fund F
(Small Cap Fund)
<TABLE>
<CAPTION>
Number of Fair Value
Units Cost 12/31/98
--------- ------------ ------------
<S> <C> <C> <C>
Comingled Employee Benefit Trust of
State Street Bank & Trust Company
Russell 2000 Fund 5,823,221 $128,485,919 $134,330,060
------------ ------------
Total Assets Held for Investment - Fund F $128,485,919 $134,330,060
============ ============
</TABLE>
Fund G
(International Securities Fund)
<TABLE>
<CAPTION>
Number of Fair Value
Units Cost 12/31/98
--------- ------------ ------------
<S> <C> <C> <C>
Mutal Funds of Dimensional Investment Group Inc.
Emerging Markets Portfolio II 973,688 $ 9,113,610 $ 6,504,236
International Value Portfolio IV 10,010,849 99,423,718 100,609,037
------------ ------------
Total Assets Held for Investment - Fund G $108,537,328 $107,113,273
============ ============
</TABLE>
28
<PAGE>
Schedule I-A
THE SAVINGS INCENTIVE PLAN
OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
Fund H
(Lifestyle Fund)
<TABLE>
<CAPTION>
Maturity Number of Fair Value
Rate Date Units Cost 12/31/98
------ -------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Large Cap Growth
American International Group Inc. 3,600 $ 235,417 $ 347,850
Ameritech Corp 10,500 467,402 665,437
Automatic Data Processing Inc. 3,800 247,757 304,712
Bank of New York Inc. 8,400 296,089 338,100
Bed Bath & Beyond Inc. 20,300 608,757 692,737
Cardinal Health Inc. 8,900 440,290 675,287
Carnival Corp 6,400 299,408 307,200
Ceridian Corp 4,300 274,437 300,193
Cisco Systems Inc. 9,800 349,574 909,562
Cintas Corp 8,000 408,572 563,500
Clorox Co 5,500 457,358 642,468
Coca-Cola Co 7,300 556,237 488,187
Compaq Computer Corp 12,600 417,090 528,412
Compuware Corp 5,300 258,901 414,062
Costco Cos Inc. 4,600 306,698 332,062
Danaher Corp 9,100 334,569 494,243
Dell Computer Corp 6,200 399,649 453,762
E M C Corp 8,400 321,675 714,000
Ecolab Inc. 8,800 307,273 318,450
Elan Plc 4,800 307,641 333,900
Federal Home Loan Mortgage 4,700 264,800 302,856
Federal National Mortgage Association 11,600 582,203 858,400
Fifth Third Bancorp 4,200 244,338 299,512
Finova Group Inc. 6,100 354,458 329,018
Firstar Corp 4,000 280,679 373,000
General Electric Co 19,900 1,360,906 2,031,043
Health Management Associate 15,400 332,806 333,025
Home Depot Inc. 12,400 409,415 758,725
Intel Corp 10,300 851,178 1,221,193
IBM 2,950 509,790 545,012
Interpublic Group Cos Inc 5,200 317,590 414,700
Johnson & Johnson 7,700 572,758 645,837
Leggett & Platt Inc 3,100 67,517 68,200
Lilly Eli & Co 11,600 850,993 1,030,950
Medtronic Inc. 12,200 687,674 905,850
Merck & Co Inc. 6,100 599,589 900,893
Microsoft Corp 13,900 1,237,625 1,927,756
Paychex Inc. 7,600 262,584 390,925
Pfizer Iinc. 8,200 595,695 1,028,587
Procter & Gamble Co 10,100 784,653 922,256
SBC Communications Inc. 11,000 520,566 589,875
Schering Plough Corp 17,500 611,294 966,875
Solectron Corp 4,825 212,269 448,423
Staples Inc. 7,700 273,189 336,393
</TABLE>
29
<PAGE>
Schedule I-A
THE SAVINGS INCENTIVE PLAN
OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
Fund H
(Lifestyle Fund)
<TABLE>
<CAPTION>
Maturity Number of Fair Value
Rate Date Units Cost 12/31/98
------ -------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Sunguard Data Systems Inc. 16,500 487,131 654,843
Wal Mart Stores Inc. 14,200 527,899 1,156,412
Walgreen Co 7,900 222,989 462,648
Warner Lambert Co 4,100 192,879 308,268
Zions Bancorp 9,900 408,489 617,519
STIF of State Street Bank & Trust Co. 5.364% 950,794 950,799 950,799
----------- -----------
Total Large Cap Growth $22,869,549 $31,603,917
Large Cap Value
AMR Corp 6,200 $ 379,527 $ 368,125
Aeroquip Vickers Inc. 11,200 602,884 335,300
Air Prod & Chems Inc. 7,000 278,852 280,000
Allstate Corp 12,400 487,374 478,950
American General Corp 3,300 186,036 257,400
Arrow Electronics Inc 10,800 306,141 288,225
Avnet Inc 5,600 340,542 338,800
Bank One Corp 8,600 451,804 439,137
Bank America Corp 7,500 436,266 450,937
Bank Boston Corp 4,000 163,019 155,750
Beckman Coulter Inc 7,300 348,875 396,025
Bell Atlantic Corp 8,700 407,853 461,100
Burlington Northern Santa Fe 2,400 77,861 81,000
Cigna Corp 7,300 432,051 564,381
Case Corp 25,600 1,406,142 558,400
Chase Manhattan Corp 12,200 684,430 830,362
Cinergy Corp 3,400 114,416 116,875
Columbia / HCA Healthcare Corp 11,600 337,272 287,100
Consolidated Stores Corp 100 3,443 2,018
Cooper Cameron Corp 2,100 77,516 51,450
Cummins Engine Inc 11,900 922,231 422,450
DTE Energy Co 5,600 180,851 240,100
Dana Corp 9,600 429,945 392,400
Delta Air Lines Inc 7,200 384,203 374,400
Dillards Inc 9,600 360,504 272,400
Dole Food Inc 1,100 35,747 33,000
Duke Energy Co 2,900 162,780 185,781
Eaton Corp 2,100 185,007 148,443
Entergy Corp 5,700 143,551 177,412
Everest Reinsurance Holdings 8,100 297,168 315,393
FMC Corp 3,300 254,529 184,800
First Data Corp 17,200 435,603 545,025
First Union Corp 12,900 631,017 784,481
</TABLE>
30
<PAGE>
Schedule I-A
THE SAVINGS INCENTIVE PLAN
OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
Fund H
(Lifestyle Fund)
<TABLE>
<CAPTION>
Maturity Number of Fair Value
Rate Date Units Cost 12/31/98
------ -------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Ford Motor Co 12,600 462,324 739,462
Foundation Health Systems Inc. 17,500 371,537 208,906
GPU Inc. 4,800 171,120 212,100
General Motors Corp 16,200 1,036,901 1,159,312
Goodyear Tire and Rubber Co 9,900 609,392 499,331
Grace W R & Co 13,500 203,707 211,781
Harnischfeger Industries Inc 12,700 290,496 129,381
Hartford Financial Services Group 7,300 313,719 400,587
Healthsouth Corp 31,900 333,852 492,456
IBP Inc. 8,100 185,120 235,912
IMC Globallinc 7,800 278,418 166,725
Inland Steel Industries Inc. 11,000 258,063 185,625
International Businees Machine Corp 4,800 554,669 886,800
Kennametal Inc. 7,100 322,338 150,875
Liz Claiborne Inc. 17,200 574,501 542,875
Mallinckrodt, Inc. 4,400 156,895 135,575
Morton International Inc. 4,400 119,015 107,800
Nabors Industries Inc. 14,500 286,601 196,656
Old Republic International Corp 11,050 264,185 248,625
Olsten Corp 18,200 324,368 134,225
Owens Corning 15,100 569,788 535,106
PNC Bank Corp 9,800 507,903 530,425
Parker Hannifin Corp 11,550 425,413 378,263
Phillip Morris Companies Inc. 11,100 532,806 593,850
Phillips Petroleum Co 3,300 157,959 140,662
RJR Nabisco Holdings Corp 16,000 566,748 475,000
Reliastar Financial Corp 7,500 286,672 345,937
Republic New York Corp 4,900 256,739 223,256
Rohm & Haas Co 9,900 317,369 298,237
Sears Roebuck & Co 7,800 381,367 331,500
Southern Co 7,200 199,829 209,250
Springs Industries Iinc 5,100 235,248 211,331
Standard Register Company 3,400 113,576 105,187
TRW Inc 6,500 347,069 365,218
Tecumseh Products Co 5,300 292,843 247,112
Tektronix Inc 12,300 457,991 369,768
Tenet Healthcare Corp 16,400 454,424 430,500
Toys "R" Us Inc 20,400 589,096 344,250
Transatlantic Holdings Inc. 3,800 274,521 287,137
Ultramar Diamond Shamrock 12,800 393,361 310,400
United Healthcare Corp 9,200 317,659 396,175
Universal Foods Corp 14,400 278,159 395,108
VF Corporation 12,000 548,539 562,500
Washington Mut Inc. 11,000 427,418 420,069
</TABLE>
31
<PAGE>
Schedule I-A
THE SAVINGS INCENTIVE PLAN
OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
Fund H
(Lifestyle Fund)
<TABLE>
<CAPTION>
Maturity Number of Fair Value
Rate Date Units Cost 12/31/98
------ -------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Westvaco Corp 4,400 139,789 117,979
STIF of State Street Bank & Trust Co 5.364% 963,589 963,589 963,584
----------- -----------
Total Large Cap Value $29,098,536 $27,450,233
Small Cap Growth
AHL Services Inc. 10,126 $ 236,839 $ 316,438
Abacus Direct Corp 9,251 293,129 420,921
Agouron Pharmaceuticals Inc. 1,831 79,894 107,571
American Tower Corp 10,437 256,333 308,544
ANDRX Corp 5,315 213,149 272,394
Aptargroup Inc. 9,445 265,769 265,050
Aapect Dev Inc. 7,269 291,176 322,108
Bisys Group Inc. 3,807 187,680 196,537
Barr Labs Inc. 7,785 233,712 373,680
Beringer Wine Estates Holdings 6,380 252,522 285,106
C Cube Microsystems Inc. 10,332 271,951 280,256
CDW Computer Centers Inc. 2,982 165,038 286,086
Catalina Marketing Corp 5,679 307,818 388,302
Central Parking Corp 3,751 140,807 121,673
Centura BKS Inc. 4,626 318,454 344,059
Cullen Frost Bankers Inc. 7,783 378,997 427,092
Data General Corp 10,563 223,998 173,629
Devry Inc. 12,525 298,630 383,578
Eagle USA Airfreight Inc. 19,384 529,067 474,908
Electronics For Imaging Inc. 7,997 276,896 321,379
Engineering AnimationInc. 4,418 211,213 238,572
Enhance Financial Services Group Inc. 7,002 197,757 210,060
Executive Risk Inc. 7,269 423,249 399,341
Ha Lo Industries Inc. 8,711 275,529 327,751
Heftel Broadcasting Corp 11,548 434,788 568,739
Horizon Organic Holding Corp 8,550 140,589 132,525
Hub Group Inc. 7,040 207,231 136,400
ICG Communications Inc. 12,261 267,443 263,612
Jabil Circuit Inc. 3,078 166,464 229,696
Lamar Advertising Co 15,419 305,039 574,358
Legato Systems Inc. 6,501 264,706 428,660
Lernout & Hauspie Speech Products 7,768 254,402 253,431
Level One Communications Inc. 10,060 249,413 357,130
Linens N Things Inc. 6,202 185,657 245,754
Lycos Inc. 8,491 224,471 471,781
Macromedia Inc. 9,261 316,151 311,980
Medimmune Inc. 1,786 128,501 177,595
Mens Wearhouse Inc. 9,738 239,828 309,182
Mercury Interactive Corp 2,544 146,280 160,908
</TABLE>
32
<PAGE>
Schedule I-A
THE SAVINGS INCENTIVE PLAN
OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
Fund H
(Lifestyle Fund)
<TABLE>
<CAPTION>
Maturity Number of Fair Value
Rate Date Units Cost 12/31/98
------ -------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Metro Networks, Inc. 9,422 292,549 401,613
Metzler Group Inc. 11,219 305,596 546,225
Microchip Technology Inc. 3,398 129,294 125,726
Micron Electronics Iinc 17,018 259,794 294,624
NFO Worldwide Inc. 11,902 203,782 136,873
NTL Inc. 4,995 283,466 281,905
Natrol Inc. 10,009 163,561 110,099
Network Appliance Inc. 10,576 299,250 475,920
Novellus System Inc. 5,342 263,167 264,429
OM Group Inc. 11,265 405,784 411,173
PSS World Med Inc. 5,986 136,930 137,678
Parexel International Corp 13,047 476,797 326,175
Peoples Heritage Financial Group 20,911 360,585 418,220
Petroleum Geo Services 19,665 304,781 309,724
Premier ParkInc. 10,365 184,556 313,541
Probusiness Services Inc. 14,134 323,032 643,097
Professional Detailing Inc. 12,043 233,626 340,215
Profit Recovery Group International Iinc. 15,132 269,126 566,504
RSL Communications Ltd 6,814 195,051 201,013
Rational Software Corp 12,817 317,458 339,651
Rental Services Corp 20,112 481,904 315,507
Roberts Pharmaceutical Corp 17,445 415,350 379,429
Romac International Inc. 11,652 246,879 259,257
SFX Entertainment Inc. 7,519 307,733 412,605
Sapient Corp 2,891 108,833 161,896
Service Experts Inc. 11,003 354,319 321,838
SIPEX Corp 18,672 556,383 655,854
Skytel Communications Iinc. 11,152 246,260 246,738
Skywest Inc. 4,943 150,374 161,574
Steris Corp. 12,306 332,330 349,952
Sylvan Learning System Inc. 9,136 279,331 278,648
Tekelec Inc. 16,415 294,036 271,873
Tiffany & Co. 4,824 224,006 250,245
Total Renal Care Holdings Inc. 22,677 607,566 670,389
Tower Automotive, Inc. 22,183 499,861 553,189
Transaction Systems Architects Inc. 3,400 128,437 170,000
United Rd Services Inc. 22,158 359,428 407,153
U S Trust Corp 600 42,024 45,600
ViroPharma Iinc. 13,390 238,469 124,694
Waste Connections Iinc 8,185 140,184 150,397
Western Wireless Corp 6,482 130,559 142,602
Whittman-Hart Inc. 16,592 278,398 458,352
Whole Foods Market, Inc. 8,141 327,258 393,822
Wiley John & Son 1,655 62,490 79,956
</TABLE>
33
<PAGE>
Schedule I-A
THE SAVINGS INCENTIVE PLAN
OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
Fund H
(Lifestyle Fund)
<TABLE>
<CAPTION>
Maturity Number of Fair Value
Rate Date Units Cost 12/31/98
------ -------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Wilmar Industries Inc. 13,259 316,065 269,327
STIF of State Street Bank & Trust Co 5.364% 2,000,865 2,000,865 2,000,864
----------- -----------
Total Small Cap Growth $24,398,097 $28,042,952
Small Cap Value
Aceptance Insurance Co 15,000 $ 345,863 $ 303,751
AEHR Test Systems 42,400 275,427 259,701
Alaska Air Group Inc 500 17,602 22,126
Alliant Techsystens Inc. 3,500 222,900 288,532
Astro Med Inc. 2,600 22,197 14,137
Atchison Casting Corp 25,500 414,833 235,875
Atwood Oceanics Inc. 13,100 414,131 222,700
Aztar Corp 43,400 303,507 219,712
Baldor Electric Co 11,500 237,370 232,875
Brightpoint Inc. 17,400 249,309 239,250
Brookstone Inc. 1,900 23,995 32,537
Cannondale Corp 37,100 669,279 333,900
Carpenter Technology Corp 1,400 68,892 47,512
Centris Group Inc. 25,400 314,903 247,650
Coachmen Indusrtires Inc. 16,000 302,178 420,000
Commercial Intertech Corp 15,000 252,252 194,062
Commonwealth Industries Inc. 25,500 489,625 239,062
Conrad Indusrtries Inc. 7,800 87,639 30,468
Corrections Corp America 3,200 50,647 56,400
D.R. Horton Inc. 11,200 175,108 257,600
Depotech Corp 35,000 110,240 80,937
Dimon Inc. 42,800 831,790 318,325
Duckwall Alto Stores Inc. 19,100 280,724 253,075
ENSCO International Inc. 10,000 102,981 106,875
ESCO Electronics Corp 32,250 565,909 292,265
Eagle USA Airfreight Inc. 7,700 96,686 188,650
EASCO Inc. 27,000 254,391 209,250
EKCO Group Inc. 31,300 216,752 117,375
ENGLE Homes Inc. 11,000 169,976 168,437
Ennis Business Forms Iinc. 5,300 58,618 52,668
Executive Risk Inc. 4,400 206,220 241,725
FLIR Systems Inc. 8,500 148,522 197,625
Flexsteel Industries Inc. 18,000 216,000 231,750
Flowserve Corp 16,000 492,672 265,000
Fritz Companies Inc. 63,000 773,042 681,187
Global Industrials Technologies Inc. 53,800 785,363 574,987
Haskel International Inc. 17,900 293,100 211,593
</TABLE>
34
<PAGE>
Schedule I-A
THE SAVINGS INCENTIVE PLAN
OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
Fund H
(Lifestyle Fund)
<TABLE>
<CAPTION>
Maturity Number of Fair Value
Rate Date Units Cost 12/31/98
------ -------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Haverty Furniture Company Inc. 5,500 78,031 115,500
Holophane Corp 9,900 235,225 254,306
Interlink Computer Sciences, Inc. 11,200 62,785 45,312
JLG Industries Inc. 60,000 705,597 937,500
Kenan Transport Co 10,900 299,278 348,800
Kevco Inc. 3,500 46,223 29,000
Keystone Consolidated Indusrties Inc. 30,300 404,785 246,188
Komag Inc. 46,000 322,684 477,250
LTV Corp 90,800 1,201,358 527,775
Ladish Inc. 35,100 535,716 293,962
Lone Star Technologies Inc. 18,600 339,375 188,325
MMI Companies Inc. 27,200 681,877 455,600
Manchester Equipment Co., Inc. 14,900 74,712 51,218
Matrix Bancorp Inc. 22,400 314,357 302,400
Matrix Pharmaceuticals, Inc. 53,000 282,985 147,262
Morgan Products Ltd 33,300 283,780 116,550
Motor Cargo Industries Inc. 27,800 347,075 222,400
Myers Industries Inc. 11,500 252,671 329,906
Nash Finch Co. 9,000 186,303 128,250
Nuevo Energy Co 30,300 703,769 348,450
Orthologic Corp 72,000 430,652 240,750
PBOC Holdings Inc. 12,000 171,158 123,000
PMI Group Inc. 2,400 123,275 118,500
Patrick Industries Inc. 20,000 313,124 307,500
Penn America Group Inc. 24,100 423,645 218,406
Perini Corp 24,000 192,949 123,000
Presidential Life Corp 8,700 183,108 172,912
Professionals Group Inc. 4,180 137,543 129,580
R & B Falcon Corp 33,490 725,348 255,361
R.P.M. Inc. 9,700 155,684 155,200
Read Rite Corp 7,700 80,818 113,815
Reynolds & Reynolds Co 10,000 170,010 229,375
Rockshox Inc. 14,400 97,353 36,900
Rowan Companies Inc. 14,500 128,286 100,000
Rush Enterprises Inc. 12,100 134,763 133,100
Santa Fe International Corp 9,500 125,920 138,937
Schultz SAV-O Stores Inc. 17,100 277,501 282,150
Schweitzer Mauduit International Inc. 22,000 739,715 339,625
Seibels Bruce Group Inc. 40,200 329,204 135,675
SOLA International Inc. 18,700 450,499 322,575
Spacehab Inc 39,500 428,401 414,750
Standard Commercial Corp 70,000 1,005,934 599,375
Superior Industries International Inc. 11,300 298,815 314,281
Symons International Group Inc. 19,000 363,203 137,750
</TABLE>
35
<PAGE>
Schedule I-A
THE SAVINGS INCENTIVE PLAN
OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
Fund H
(Lifestyle Fund)
<TABLE>
<CAPTION>
Maturity Number of Fair Value
Rate Date Units Cost 12/31/98
------ -------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Syms Corp 38,100 494,678 342,900
TBC Corp 16,200 107,493 115,425
Tidewater Inc. 10,200 238,356 236,512
Timberland Co 10,100 405,973 460,181
Timken Co 15,700 299,487 296,337
Tropical Sportswear International Corp 16,600 235,648 595,525
Tuscarora Inc. 4,500 67,886 60,187
Ultrak Inc. 50,000 534,786 368,756
Unisource Worldwide Inc. 35,500 389,205 257,375
United Industrial Corp 46,800 428,124 459,225
Watts Industries Inc. 16,400 362,525 272,655
West Inc. 11,500 359,869 410,406
Wolverine Worldwide Inc 33,700 372,419 446,525
STIF of State Street Bank & Trust Co 5.364% 581,476 581,477 581,475
----------- -----------
Total Small Cap Value $30,264,063 $23,701,529
International Equity
ABN AMRO Holdings 15,720 $ 354,137 $ 330,516
AKZO Nobel 11,757 486,852 535,064
Allied Domecq PLC 47,079 480,779 435,279
Allied Zurich 27,960 342,708 420,167
Aust & NZ Bank Group 91,015 662,558 595,649
Bayer AG 6,440 332,869 268,752
BIC 3,486 194,006 193,286
BOC Group 16,613 219,218 238,197
Bohler Uddeholm 3,385 264,739 157,549
BQE National Paris 6,300 512,019 518,558
BRIT AMER Tobacco 30,710 165,858 270,417
BTR PLC 155,368 542,045 318,789
Buderus AG 775 341,803 282,266
Canadian Hunter Expl Ltd. 7,156 685 46,817
Canadian Imperial Bk Toronto 15,340 401,744 381,367
CGU 31,360 370,362 494,444
Coats Viyella 261,200 501,779 117,168
CommerzBank AG 10,815 376,993 341,983
Cookson Group PLC 171,340 662,988 372,911
Dragerwerk AG 16,309 325,309 264,216
Dyckerhoff AG 1,155 397,192 320,178
Electrolux AB 27,745 402,985 476,372
Elementis 240,580 370,918 327,754
Elf Aquitaine 3,670 418,175 424,042
Eni SpA 73,690 417,850 481,328
</TABLE>
36
<PAGE>
Schedule I-A
THE SAVINGS INCENTIVE PLAN
OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
Fund H
(Lifestyle Fund)
<TABLE>
<CAPTION>
Maturity Number of Fair Value
Rate Date Units Cost 12/31/98
------ -------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Fletcher Challenge 156,756 439,522 241,683
Forbo Holding 881 361,279 384,800
Getinge Industrier 25,005 513,082 375,468
Greencore Group 81,710 412,849 376,711
Hang Lung Devel Co 403,000 778,902 431,733
Hanson 90,250 440,961 718,221
Hillsdown Holdings 153,656 282,319 191,463
Hollandsche Beton 13,025 294,131 160,845
Hyder 16,675 226,688 210,549
ING Groep N.V. 9,955 437,095 606,721
Jardine Matheson 103,200 758,200 266,256
Koito Mfg Co 59,000 441,009 249,986
Kon Kpn N.V. 9,005 242,316 450,561
Kvaerner ASA 5,720 169,786 112,917
Kyocera Corp 9,300 447,705 491,118
Lafarge 5,482 347,619 520,647
Lloyds TSB Group 46,368 555,253 660,198
Medeva 118,045 325,296 209,849
National Westminster 33,965 494,987 657,405
NESTLE SA 214 292,557 465,793
New World Development Co 119,000 408,433 299,512
Nexfor Inc. 12,480 723 49,397
Nichicon Corp 35,000 456,589 436,532
Nintendo Co 6,300 556,191 610,216
Noranda Inc. 28,625 576,180 285,594
Novartis AG 395 638,417 776,370
Pernod Ricard 6,199 303,715 402,474
Philips Electric 7,260 394,278 486,911
Pioneer International Ltd. 215,989 691,836 456,622
Powergen 27,585 346,232 362,055
Promise Company Ltd. 12,300 601,379 639,752
Safeway 62,980 359,564 315,998
Saurer AG Arbon 492 363,038 293,688
Schw Ruckversicher 185 246,545 482,263
SGL Carbon 1,430 84,762 85,803
Sig Schweizerisne Industrie Gesellschaft Holding AG 541 388,745 318,999
Skand Enskilda 18,490 299,571 194,576
Smurfit (Jefferson) Group PLC 247,050 651,746 444,572
Societe Generale 2,850 373,994 461,321
South China Morning Post 573,000 500,112 293,984
Sulzer AG 526 331,410 320,113
Swire Pacific Ltd. 80,500 492,837 360,549
</TABLE>
37
<PAGE>
Schedule I-A
THE SAVINGS INCENTIVE PLAN
OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
Fund H
(Lifestyle Fund)
<TABLE>
<CAPTION>
Maturity Number of Fair Value
Rate Date Units Cost 12/31/98
------ -------- --------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Telecom Italia SPA 12,000 74,569 75,479
Telecom Italia SPA 46,800 383,951 399,093
Telefonica SA 9,430 331,344 418,685
Telefonica SA 9,430 -- 8,369
TI Group 80,800 492,452 434,608
TNT Post Groep NV 8,120 137,916 261,489
Tomkins PLC 130,234 739,257 618,823
Total International Equity 3,235 400,716 327,493
UPM Kymmene OY 17,900 439,328 498,489
Veba AG 8,221 461,865 491,799
Vossloh AG 9,545 273,328 280,638
Williams 50,471 293,344 288,459
Yodogawa Steel Works Ltd. 116,000 643,069 437,115
STIF of State Street Bank & Trust Co 5.364% 1,200,247 1,200,249 1,200,247
----------- -----------
Total International Equity $32,745,812 $30,514,080
Domestic Fixed Income
Aames Mortgage Trust 6.590% 6/15/24 735,000 $ 734,885 $ 745,144
Allstate Corp 6.750% 5/15/18 565,000 571,347 587,223
Asset Securitization Corp 7.100% 8/13/29 366,296 385,769 389,859
Asset Securitization Corp 6.500% 2/14/41 1,370,780 1,379,776 1,402,309
Asset Securitization Corp 6.850% 2/14/41 500,000 509,218 535,291
Associates Corp North America 6.250% 11/1/08 770,000 767,985 797,351
BB & T Corp 6.375% 6/30/05 1,260,000 1,260,587 1,286,637
British Columbia Prov Canada 5.375% 10/29/08 400,000 397,951 399,225
Century Tel Enterprises Inc. 6.300% 1/15/08 580,000 576,710 596,252
Conseco Inc Medium Term Senior Notes 6.400% 6/15/01 685,000 684,467 659,916
Contimorgage Home Equity 6.130% 3/15/13 800,000 799,888 801,745
CWMBS Inc 7.250% 11/25/27 2,375,532 2,348,065 2,427,025
Dayton Hudson Corp 5.950% 6/15/00 445,000 444,734 448,575
Equitable Life Assurance Soc. of USA 6.950% 12/1/05 565,000 572,766 598,964
Ericsson 6.750% 2/12/02 480,000 491,030 502,083
FCC National Bank Wilmington Del 5.680% 6/3/99 2,000,000 1,999,437 1,999,437
Federal Home Loan Mortgage Corp 6.250% 6/15/24 630,000 633,346 634,359
Federal National Mortgage Association 6.500% 12/1/99 770,000 773,368 775,051
Federal National Mortgage Association 6.000% 5/15/08 2,000,000 2,119,740 2,111,240
Federal National Mortgage Association 6.000% 12/1/99 580,000 571,481 571,481
Ford Motor Company 6.500% 8/1/18 800,000 807,964 819,616
GMAC Commercial Mortgage Sec Inc 0.999% 5/15/31 800,000 808,625 828,784
GTE Corp 6.360% 4/15/06 580,000 599,397 606,801
Hartford Financial Services Group Inc. 6.375% 11/1/08 375,000 374,051 385,293
</TABLE>
38
<PAGE>
Schedule I-A
THE SAVINGS INCENTIVE PLAN
OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
Fund H
(Lifestyle Fund)
<TABLE>
<CAPTION>
Maturity Number of Fair Value
Rate Date Units Cost 12/31/98
------ -------- --------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Household Financial Corp 6.500% 11/15/08 565,000 583,837 587,893
JP Morgan Commercial Mortgage Financial Corp 6.373% 1/15/30 538,908 541,603 548,452
Lucent Technologies Inc. 5.500% 11/15/08 400,000 400,339 404,294
Manitoba Province Canada 5.500% 10/1/08 405,000 409,451 409,536
Mattel Inc. 6.000% 7/15/03 400,000 398,927 403,884
MCI Communications Corp 6.125% 4/15/12 555,000 554,196 563,447
Mellon Financial Co 5.750% 11/15/03 565,000 566,363 568,915
Merrill Lynch & Co Inc 6.000% 11/15/04 500,000 499,037 501,765
Morgan Stanley Capital I Inc 6.440% 1/15/28 750,000 753,679 766,807
Morgan Stanley Capital I Inc 6.550% 12/15/07 1,000,000 1,014,328 1,034,580
National Rural Utility Coop Fin 6.200% 2/1/08 660,000 693,215 685,720
Nationsbank Corp 6.375% 5/15/05 690,000 713,945 717,220
Norfolk Southern Corp 6.950% 5/1/02 500,000 520,212 519,640
Norwest Asset Securities Corp 6.750% 2/25/13 968,784 970,031 976,549
Occidental Petroleum Corp 6.400% 4/1/03 235,000 234,782 231,279
Ontario Province Canada 5.500% 10/1/08 405,000 403,641 406,559
Petroleum Geo Services A/S 6.625% 3/30/08 550,000 547,821 536,915
Philadelphia Electric Co 7.125% 9/1/02 275,000 282,939 288,323
Philadelphia Electric Co 6.625% 3/1/03 1,045,000 1,071,847 1,081,951
Raytheon Co 6.300% 3/15/05 575,000 584,426 589,369
Republic of Ireland 6.875% 3/10/03 400,000 429,400 423,000
Residential Accredit Loans Inc. 7.250% 7/25/27 2,500,000 2,480,565 2,548,172
Sears Credit Account Master Trust II 5.250% 10/16/08 785,000 777,679 769,048
Structured Asset Securities Corp 6.790% 10/15/34 1,363,182 1,382,197 1,421,417
Suntrust Banks Inc 6.000% 1/15/28 710,000 699,478 725,534
TCI Communications Inc 6.875% 2/15/06 535,000 571,063 570,882
UCFC Loan Trust 6.800% 2/15/12 930,826 934,898 930,397
United States Treasury Bills 4.360% 6/24/99 60,000 58,735 58,735
United States Treasury Bonds 3.625% 4/15/28 766,232 754,383 743,245
United States Treasuty Notes 6.375% 1/15/00 155,000 155,528 157,614
United States Treasuty Notes 5.875% 2/15/04 4,000,000 4,052,163 4,220,000
United States Treasuty Notes 5.500% 12/31/00 480,000 487,926 488,025
United States Treasuty Notes 6.375% 5/15/99 115,000 115,162 115,718
United States Treasuty Notes 6.500% 5/31/01 7,000,000 7,044,145 7,292,040
United States Treasuty Notes 6.625% 5/15/07 3,000,000 3,112,514 3,373,590
United States Treasuty Notes 6.250% 6/30/02 3,205,000 3,203,121 3,364,258
United States Treasuty Notes 5.625% 4/30/00 6,235,000 6,241,143 6,310,009
United States Treasuty Notes 5.625% 5/15/08 560,000 599,982 597,539
USA Waste Services Inc 6.500% 12/15/02 575,000 592,277 584,263
</TABLE>
39
<PAGE>
Schedule I-A
THE SAVINGS INCENTIVE PLAN
OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1998
Fund H
(Lifestyle Fund)
<TABLE>
<CAPTION>
Maturity Number of Fair Value
Rate Date Units Cost 12/31/98
------ -------- --------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Walt Disney Co 5.125% 12/15/03 430,000 429,456 427,617
Walt Disney Co 6.750% 3/30/06 250,000 263,964 270,535
STIF of State Street Bank & Trust Co 5.364% 961,868 961,968 961,868
----------- -----------
Total Domestic Fixed Income $67,704,853 $69,086,265
International Bond
American Express Co 5.800% 1/8/99 3,000,000 $ 2,996,616 $ 2,996,616
Associates Corp North America 5.350% 8/27/01 600,000 599,709 596,476
AWB Limited 6.250% 1/5/99 3,000,000 2,997,916 2,997,916
Banc One Auto Grantor Trust 6.270% 11/20/03 98,105 98,948 99,211
Bundesrepublik Deutschland 6.500% 7/4/27 600,000 433,957 451,638
British Treasury Note 8.000% 6/10/03 2,800,000 5,369,513 5,307,858
British Treasury Note 7.000% 6/7/02 3,700,000 6,519,335 6,611,314
Canadian Government 6.625% 10/3/07 1,390,000 728,439 743,310
Canadian Government 8.000% 6/1/23 400,000 360,363 361,269
Canadian Government 6.000% 6/1/08 2,600,000 1,783,872 1,841,347
Canadian Government 5.250% 9/1/03 1,330,000 883,364 888,232
Chase Manhattan Grantor Trust 6.610% 9/15/02 101,012 102,022 102,256
Commonwealth of Australia 7.500% 9/15/09 6,756,000 5,135,650 4,932,596
Commonwealth of Australia 8.750% 8/15/08 512,000 414,032 402,317
Daimler Benz Vehicle Owner Trust 5.230% 6/10/00 340,000 339,969 339,309
Delta Air Lines Inc 6.033% 6/29/99 210,000 210,000 205,012
Emergent Home Equity Loan Trust 6.745% 5/15/12 367,792 368,768 369,049
Euro Investment Bank 7.250% 6/7/02 2,000,000 3,490,301 3,565,446
Federal National Mortgage Association 5.500% 2/25/05 71,621 71,262 71,286
Federal National Mortgage Association 6.875% 6/7/02 2,000,000 3,443,130 3,533,238
Federal National Mortgage Association 7.250% 6/20/02 3,810,000 2,010,086 2,082,320
Federal Republic of Germany 5.625% 1/4/28 8,156,000 5,482,915 5,515,307
Ford Motor Credit Co 5.610% 1/15/99 3,000,000 2,993,455 2,993,455
GE Capital Mortgage Services Inc 6.825% 12/25/10 1,192,580 1,192,579 1,193,426
General Electric Capital Corp 5.650% 1/15/99 3,000,000 2,993,408 2,993,408
General Motors Acceptance Corp 5.810% 1/6/99 3,000,000 2,997,579 2,997,579
Government National Mortgage Association 7.000% 7/20/25 342,031 348,209 346,949
Government National Mortgage Association 7.000% 9/20/25 174,103 177,249 176,551
Government National Mortgage Association 7.000% 12/20/25 35,186 35,735 35,927
Government National Mortgage Association 7.000% 9/20/26 88,993 90,383 90,389
Government National Mortgage Association 6.500% 11/20/26 159,233 161,646 161,173
Government National Mortgage Association 7.000% 12/20/26 437,660 442,233 443,130
Government National Mortgage Association 6.875% 4/20/27 1,282,555 1,304,983 1,299,125
Government of Spain 6.000% 1/31/08 680,000,000 5,457,979 5,515,014
</TABLE>
40
<PAGE>
Schedule I-A
THE SAVINGS INCENTIVE PLAN
OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31,1998
Fund H
(Lifestyle Fund)
<TABLE>
<CAPTION>
Maturity Number of Fair Value
Rate Date Units Cost 12/31/98
------ -------- ------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Greek Drachma 250,255 899 895
Heller Financial Inc 5.686% 4/l/99 1,300,000 1,299,007 1,284,128
International Bank Reconstruction & Development 7.000% 9/18/00 3,300,000 1,710,968 1,769,036
Japanese Yen 46,402,000 381,806 410,456
Kingdom of Denmark 7.000% 11/15/07 3,300,000 542,228 622,584
Kingdom of Denmark 6.000% 11/15/02 5,700,000 857,508 961,897
Kingdom of Sweden 6.500% 5/5/08 6,300,000 866,907 908,921
New Zealand Dollar 8.000% 11/15/06 410,000 255,731 250,671
New Zealand Dollar 4.500% 2/15/06 500,000 262,103 277,224
New Zealand Dollar 139,498 72,587 73,405
New Zealand Government 7.000% 7/15/09 1,100,000 649,663 649,979
Republic of France 3.000% 7/25/09 4,807,564 867,627 854,717
Republic of Greece 8.800% 6/19/07 870,600,000 3,128,439 3,469,189
Republic of Italy 6.000% 1/1/00 285,000,000 172,088 177,020
Republic of Italy 7.250% 11/1/26 2,625,000,000 2,007,396 2,158,169
Republic of Italy 4.750% 5/1/03 1,070,000,000 670,269 683,378
Republic of Italy 5.000% 5/l/08 610,000,000 384,689 398,257
SLM Student Loan Trust 4.538% 10/25/05 2,122,629 2,117,468 2,102,697
SLM Student Loan Trust 5.227% 4/25/07 2,747,144 2,747,147 2,716,848
United States Treasury Note 3.625% 7/15/02 86,409 86,399 85,761
World Bank - IBRD 7.250% 4/9/01 3,565,000 1,843,086 1,927,508
World Bank - IBRD 7.250% 5/27/03 1,110,000 583,403 611,101
State Street Bank & Trust Co 5.364% 9,558,771 9,558,772 9,558,774
-------------- --------------
Total International Bond $ 93,101,795 $ 94,212,064
Short Term
Bankers Trust New York Corp 5.540% 1/19/99 500,000 $ 498,615 $ 498,615
Bank New York 5.750% 5/14/99 500,000 499,912 499,912
Bank of Nova Scotia 5.650% 3/23/99 500,000 499,827 499,827
Banque National De Paris 5.640% 3/19/99 700,000 699,735 699,735
Chase Manhattan Bank 5.740% 5/10/99 500,000 499,898 499,898
Deutsche Bank AG 5.740% 5/20/99 500,000 499,907 499,907
Federal Home Loan Bank 4.790% 6/2/99 500,000 489,887 489,887
Federal Home Loan Mortgage 4.800% 6/2/99 500,000 489,866 489,866
Rabobank Nederland 5.750% 5/14/99 500,000 499,913 499,913
Westdeutcshe Landesbank Giroz 4.840% 11/5/99 500,000 499,839 499,839
STIF of State Street Bank & Trust Co 5.364% 5,362,255 5,362,257 5,362,257
-------------- --------------
Total Short Term $ 10,539,656 $ 10,539,656
Total Assets Held for Investment - Fund H $ 310,722,361 $ 315,150,696
============== ==============
Total Assets Held For Investment In The
Savings Incentive Plan $2,045,393,963 $2,882,859,970
============== ==============
</TABLE>
41
<PAGE>
SCHEDULE I-B
THE SAVINGS INCENTIVE PLAN OF CITIBANK, NA AND PARTICIPATING COMPANIES
(As Amended and Restated)
Item 27A - Schedule of Assets Held for Investment Purposes
Which Were Both Acquired & Disposed of
Within the Plan Year Ended December 31, 1998
<TABLE>
<CAPTION>
Cost of Proceeds of Net
Principal Amount Description of Issue Acquisition Disposition Gain/(Loss)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
International Equity
1,236 Credit Suisse 274,322 203,681 (70,642)
165 Grope (Fredric) AG 49,583 58,105 8,522
37,275 Abbey National 648,187 675,127 26,940
67,000 McKenzie 486,846 371,874 (114,972)
45,300 Tate & Lyle 373,477 351,444 (22,033)
21,600 HSBC Holdings 501,684 478,762 (22,922)
30,240 Singapore Development Bank 162,190 223,690 61,500
Domestic Fixed Income
945,000 Allied Signal Inc, 6.2%, 2/1/08 945,430 949,666 4,236
425,000 Bell South Communications, 6%, 6/15/02 424,503 425,718 1,215
350,000 Beneficial Corporation, 6.25%, 2/18/03 349,601 350,396 795
325,000 Government of Canada 11/5/08 324,925 321,035 (3,890)
365,000 Computer Associates International Inc 6.375%,4/15/05 363,069 363,144 75
365,000 Computer Associates International Inc. 6.375%, 4/15/05 363,144 359,667 (3,477)
735,000 Contimortgage Home Equity Loan Trust, 6.870%, 3/15/24 735,000 747,633 12,633
700,000 Contimortgage Home Equity Loan Trust,6.280%, 1/15/13 699,912 703,828 3,916
650,000 Contimortgage Home Equity Loan Trust,6.570%, 3/15/23 649,969 651,777 1,808
505,000 Credit Suisse First Boston, 6.5%, 5/1/08 502,324 504,636 2,312
505,000 Donaldson Lufkin & Jenrette, 6.5%, 6/1/08 502,904 506,515 3,611
2,250,000 First Union Lehman Mortgage Trust, 6.650%, 12/18/07 2,261,183 2,311,260 50,077
700,000 Ford Motor Company, 6.625%, 2/15/28 697,676 696,367 (1,309)
800,000 Ford Motor Company Credit Corporation, 6.125%, 4/28/03 807,736 819,736 12,000
400,000 General Electric Capital Corporation, 5.6%, 1/14/00 400,128 402,576 2,448
320,000 General Motors Acceptance Corporation, 5.75%, 11/10/03 318,765 319,720 955
500,000 Household Financial Corporation, 6.4%, 6/17/08 500,290 503,185 2,895
350,000 Lehman Brothers Holdings, 6%, 2/26/01 349,314 345,482 (3,832)
350,000 Lehman Brothers Holdings, 6.150%, 3/15/00 349,927 350,823 896
795,000 Proctor & Gamble Co, 6.125%, 5/8/08 802,545 838,900 36,355
285,000 Merrill Lynch & Co, 6%, 2/12/03 284,866 285,322 456
465,000 Merrill Lynch & Co, 6%, 7/15/05 462,043 466,018 3,975
700,000 Norfolk Southern Corp, 7.350%, 5/15/07 752,864 766,913 14,049
500,000 Pacificorp, 6.375%, 5/15/08 498,500 498,355 (145)
</TABLE>
42
<PAGE>
SCHEDULE I-B
THE SAVINGS INCENTIVE PLAN OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
Item 27A - Schedule of Assets Held for Investment Purposes
Which Were Both Acquired & Disposed of
Within the Plan Year Ended December 31, 1998
<TABLE>
<CAPTION>
Cost of Proceeds of Net
Principal Amount Description of Issue Acquisition Disposition Gain/(Loss)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Domestic Fixed Income
575,000 Pitney Bowes Credit Corporation, 5.650%, 1/15/03 569,940 570,931 991
510,000 Ras Laffan Liquefield Natural Gas, 7.628%, 9/15/06 523,444 519,104 (4,340)
190,000 Raytheon Co, 5.950%, 3/15/01 189,766 192,248 2,482
1,000,000 SLM Student Loan Trust, 1%, 1/25/07 1,000,000 1,000,000 --
725,000 Sears Roebuck Acceptance Corporation, 6%, 3/20/03 720,230 724,783 4,553
760,000 SONY Corporation, 6.125%, 3/4/03 761,153 784,334 23,181
760,000 USA Waste Services Inc, 6.125%, 7/15/01 759,065 773,019 13,954
365,000 Union Pacific, 6.5%, 5/15/05 364,095 359,760 (4,335)
International Bond
7,200,000 Australia Commonwealth, 10%, 10/15/07 5,680,991 5,730,044 49,053
28,800,000 Federal Republic of Germany, 5.25%, 1/4/08 16,405,532 16,512,707 107,175
285,000,000 Government of Spain, 5.25%, 1/31/03 1,995,485 2,103,531 108,046
1,890,000,000 Kingdom of Spain, 6%, 1/31/29 14,819,129 14,916,833 97,704
80,000,000 Republic of Finland, 7.25%, 4/18/06 16,671,528 16,784,457 112,929
46,000,000 Republic of Finland, 6%, 4/25/08 9,770,764 10,098,208 327,444
55,370,000 Government of France, 5.250%,4/25/08 9,454,642 9,555,374 100,732
4,380,000 British Treasury Bill, 9%, 10/13/08 9,081,612 9,073,906 (7,706)
586,500,000 Government of Japan, 2.6%, 9/20/07 4,789,391 4,652,219 (137,172)
309,000,000 Government of Japan, 4.1%, 12/22/03 2,682,271 2,578,938 (103,333)
500,000 Government of Poland, 1%, 10/27/24 324,063 301,480 (22,583)
500,000 Government of Poland, 1% 10/27/24 356,875 325,000 (31,875)
440,000 Republic of Croatia, 1%, 7/31/10 389,082 300,800 (88,282)
314,313 Republic of Croatia, 1%, 7/31/06 287,911 226,911 (61,000)
500,000 Lehman Brothers Holdings Inc., 8.15%, 5/15/00 498,440 509,985 11,545
640,000 Merrill Lynch & Co., 5.767%, 11/1/01 640,000 638,694 (1,306)
</TABLE>
Note: Transactions exempt under Section 2520.103-11 of the Rules and Regulations
for Reporting and Disclosure as issued by the Department of Labor
effective for Plan years beginning in 1977 and thereafter are not included
in this schedule
43
<PAGE>
SCHEDULE II
THE SAVINGS INCENTIVE PLAN OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
Item 27d - Schedule of Reportable Transactions During the Year
Ended December 31, 1998
A. Single Transaction in Excess of 5% (or $142,988,264) of Current Value (or
$2,859,765,283) of Plan Assets at the Beginning of the Year: NONE
B. Series of Non-Security Transactions with Same Party, Aggregating Over 5%
(or $142,988,264) of Current Value (or $2,859,765,283) of Plan Assets at
the Beginning of the Year: NONE
44
<PAGE>
SCHEDULE II
THE SAVINGS INCENTIVE PLAN OF CITIBANK, N.A. AND PARTICIPATING COMPANIES
(As Amended and Restated)
Item 27d - Schedule of Reportable Transactions During the Year
Ended December 31, 1998
C. Series of Transactions With Respect to Securities of the Same Issue
Aggregating over 5% (or $142,988,264) of Current Value (or $2,859,765,283)
of Plan Assets at the Beginning of the Year:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
PURCHASE SELLING EXPENSE WITH COST OF CURR. VALUE OF ASSET ON NET GAIN
PRICE PRICE TRADE ASSET TRANSACTION DATE (LOSS)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Short Term Investment Fund 347,745,953 347,745,953 347,745,953
of State Street Bank and Trust
Company 352,309,521 0 352,309,521 352,309,521 0
No. Of Transactions 129 121
- ----------------------------------------------------------------------------------------------------------------------------------
Citigroup Inc. 519,948,009 519,948,009 519,948,009
21,495,159 0 10,681,682 21,495,159 10,813,477
No. Of Transactions 14 61
- ----------------------------------------------------------------------------------------------------------------------------------
Citicorp 269,077,570 269,077,570 269,077,570
688,244,373 0 1,235,747,511 688,244,373 (547,503,138)
No. Of Transactions 58 214
- ----------------------------------------------------------------------------------------------------------------------------------
First Union Repo 286,630,000 286,630,000 286,630,000
286,630,000 0 286,630,000 286,630,000 0
No. Of Transactions 22 22
- ----------------------------------------------------------------------------------------------------------------------------------
Fuji Repo 3,397,077,000 3,397,077,000 3,397,077,000
3,397,077,000 0 3,397,077,000 3,397,077,000 0
No. Of Transactions 152 152
- ----------------------------------------------------------------------------------------------------------------------------------
Lanston Repo 173,931,000 173,931,000 173,931,000
173,931,000 0 173,931,000 173,931,000 0
No. Of Transactions 8 8
- ----------------------------------------------------------------------------------------------------------------------------------
HSBC Repo 252,472,000 252,472,000 252,472,000
252,472,000 0 252,472,000 252,472,000 0
No. Of Transactions 10 10
- ----------------------------------------------------------------------------------------------------------------------------------
Nomura Repo 336,042,000 336,042,000 336,042,000
336,042,000 0 336,042,000 336,042,000 0
No. Of Transactions 18 18
- ----------------------------------------------------------------------------------------------------------------------------------
Salomon Repo 151,528,000 151,528,000 151,528,000
182,554,000 0 182,554,000 182,554,000 0
No. Of Transactions 5 6
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
D. Transactions with Same Person involved in an individual transaction
aggregating over 5% (or $142,988,264) of Current Value (or $2,859,765,
283) of Plan Assets at the Beginning of the Year: NONE
45
