<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934.
For the fiscal year ended December 31, 1997
------------------------
or
[_] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from _____________ to ____________
Commission File Number 33- (Amerisource Health Corporation)
----------------
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
AMERISOURCE CORPORATION
EMPLOYEE INVESTMENT PLAN
300 CHESTER FIELD PARKWAY
MALVERN, PA 19355
B. Name of issuer of the securities held pursuant to the plan and the address of
its principal executive office:
AMERISOURCE HEALTH CORPORATION
300 CHESTER FIELD PARKWAY
MALVERN, PA 19355
<PAGE>
AMERISOURCE CORPORATION
EMPLOYEE INVESTMENT PLAN
FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
Years ended December 31, 1997 and 1996
CONTENTS
<TABLE>
<CAPTION>
<S> <C>
Report of Independent Auditors............................... 1
Audited Financial Statements
Statement of Assets Available for Benefits,
With Fund Information, December 31, 1997.................... 2
Statement of Assets Available for Benefits,
With Fund Information, December 31, 1996.................... 3
Statement of Changes in Assets Available for Benefits,
With Fund Information, Year ended December 31, 1997......... 4
Statement of Changes in Assets Available for Benefits,
With Fund Information, Year ended December 31, 1996......... 5
Notes to Financial Statements................................ 6
</TABLE>
Supplemental Schedules
Line 27a--Schedule of Assets Held for Investment Purposes.... 13
Line 27d--Schedule of Reportable Transactions................ 15
<PAGE>
[LETTERHEAD OF ERNST & YOUNG LLP]
REPORT OF INDEPENDENT AUDITORS
Trustees of the AmeriSource Corporation
Employee Investment Plan
We have audited the accompanying statements of assets available for benefits of
the AmeriSource Corporation Employee Investment Plan as of December 31, 1997 and
1996, and the related statements of changes in assets available for benefits for
the years then ended. These financial statements are the responsibility of the
Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the assets available for benefits of the Plan at December
31, 1997 and 1996, and the changes in its assets available for benefits for the
years then ended, in conformity with generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental schedules
of assets held for investment purposes as of December 31, 1997 and reportable
transactions for the year then ended, are presented for purposes of complying
with the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974, and are
not a required part of the basic financial statements. The Fund Information in
the statements of assets available for benefits and the statements of changes in
assets available for benefits is presented for purposes of additional analysis
rather than to present the assets available for benefits and changes in assets
available for benefits of each fund. The supplemental schedules and Fund
Information have been subjected to the auditing procedures applied in our audits
of the 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.
/s/ Ernst & Young LLP
Philadelphia, Pennsylvania
April 24, 1998
<PAGE>
AMERISOURCE CORPORATION
EMPLOYEE INVESTMENT PLAN
Statement of Assets Available for Benefits, With Fund Information
December 31, 1997
<TABLE>
<CAPTION>
FIDELITY
FIDELITY FIDELITY FIDELITY FIDELITY FIDELITY RETIREMENT MONEY
MAGELLAN FUND EQUITY-INCOME INTERMEDIATE OTC ASSET MARKET
FUND FUND BOND FUND PORTFOLIO MANAGER PORTFOLIO
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
At fair value:
Shares of registered
investment companies $16,311,626 $8,348,672 $2,403,257 $1,437,923 $907,900 $5,722,710
Common stock funds -- -- -- -- -- --
---------------------------------------------------------------------------------------------------
Total investments 16,311,626 8,348,672 2,403,257 1,437,923 907,900 5,722,710
Receivables:
Participants' contribution 101,363 65,220 18,712 25,770 17,005 38,783
Employer's contribution 493,868 258,329 93,017 89,527 60,906 413,201
---------------------------------------------------------------------------------------------------
Total receivables 595,231 323,549 111,729 115,297 77,911 451,984
---------------------------------------------------------------------------------------------------
Assets available for benefits $16,906,857 $8,672,221 $2,514,986 $1,553,220 $985,811 $6,174,694
===================================================================================================
FIDELITY
AMERISOURCE IKON UNISOURCE FIDELITY SPARTAN U.S. FIDELITY
CORPORATION Corporation CORPORATION OVERSEAS EQUITY INDEX FREEDOM
STOCK FUND Stock Fund STOCK FUND FUND FUND INCOME FUND
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
At fair value:
Shares of registered
investment companies $ -- $ -- $ -- $24,545 $101,243 $1,541
Common stock funds 2,953,537 2,949,720 727,914 -- -- --
----------------------------------------------------------------------------------------------------
Total investments 2,953,537 2,949,720 727,914 24,545 101,243 1,541
Receivables:
Participants' contribution 41,116 -- -- 1,879 3,352 299
Employer's contribution 137,750 -- -- 5,420 10,683 727
----------------------------------------------------------------------------------------------------
Total receivables 178,866 -- -- 7,299 14,035 1,026
----------------------------------------------------------------------------------------------------
Assets available for benefits $3,132,403 $2,949,720 $727,914 $31,844 $115,278 $2,567
====================================================================================================
FIDELITY FIDELITY FIDELTY FIDELITY
FREEDOM FREEDOM FREEDOM FREEDOM
2000 FUND 2010 FUND 2020 FUND 2030 FUND TOTAL
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments:
At fair value:
Shares of registered
investment companies $2,052 $1,539 $1,183 $2,072 $35,266,263
Common stock funds -- -- -- -- 6,631,171
----------------------------------------------------------------------------------------------------
Total investments 2,052 1,539 1,183 2,072 41,897,434
Receivables:
Participants' contribution 292 488 319 1,035 315,633
Employer's contribution 605 570 2,842 3,405 1,570,850
----------------------------------------------------------------------------------------------------
Total receivables 897 1,058 3,161 4,440 1,886,483
----------------------------------------------------------------------------------------------------
Assets available for benefits $2,949 $2,597 $4,344 $6,512 $43,783,917
====================================================================================================
</TABLE>
See accompanying notes.
2
<PAGE>
AMERISOURCE CORPORATION
EMPLOYEE INVESTMENT PLAN
Statement of Assets Available for Benefits, With Fund Information
December 31, 1996
<TABLE>
<CAPTION>
FIDELITY
FIDELITY FIDELITY FIDELITY RETIREMENT
FIDELITY EQUITY-INCOME INTERMEDIATE OTC FIDELITY MONEY MARKET
MAGELLAN FUND FUND BOND FUND PORTFOLIO ASSET MANAGER PORTFOLIO
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
At fair value:
Shares of registered investment
companies $13,290,541 $5,763,742 $2,200,487 $1,041,900 $572,849 $5,028,971
Common stock funds -- -- -- -- -- --
------------------------------------------------------------------------------------------------
Total investments 13,290,541 5,763,742 2,200,487 1,041,900 572,849 5,028,971
Receivables:
Participants' contribution 66,899 31,570 13,534 10,515 7,648 28,927
Employer's contribution 382,574 170,312 72,789 58,628 34,884 166,459
------------------------------------------------------------------------------------------------
Total receivables 449,473 201,882 86,323 69,143 42,532 195,386
------------------------------------------------------------------------------------------------
Assets available for benefits $13,740,014 $5,965,624 $2,286,810 $1,111,043 $615,381 $5,224,357
================================================================================================
AMERISOURCE IKON UNISOURCE
CORPORATION CORPORATION CORPORATION
STOCK FUND STOCK FUND STOCK FUND TOTAL
------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments:
At fair value:
Shares of registered investment
companies $ -- $ -- $ -- $27,898,490
Common stock funds 1,155,955 6,196,296 1,222,756 8,575,007
------------------------------------------------------------------
Total investments 1,155,955 6,196,296 1,222,756 36,473,497
Receivables:
Participants' contribution 15,592 -- -- 174,685
Employer's contribution 81,810 -- -- 967,456
------------------------------------------------------------------
Total receivables 97,402 -- -- 1,142,141
------------------------------------------------------------------
Assets available for benefits $1,253,357 $6,196,296 $1,222,756 $37,615,638
==================================================================
</TABLE>
See accompanying notes.
3
<PAGE>
AMERISOURCE CORPORATION
EMPLOYEE INVESTMENT PLAN
Statements of Changes in Assets Available for Benefits, With Fund Information
Year ended December 31, 1997
<TABLE>
<CAPTION>
FIDELITY
FIDELITY FIDELITY FIDELITY FIDELITY FIDELITY RETIREMENT
MAGELLAN EQUITY-INCOME INTERMEDIATE OTC ASSET MONEY MARKET
FUND FUND BOND FUND PORTFOLIO MANAGER PORTFOLIO
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions to assets
attributed to:
Investment income:
Net appreciation
(depreciation) in
fair value of
investments $ 2,368,409 $1,395,721 $ 22,159 $ 28,223 $ 76,487 $
Interest and dividends 1,076,826 458,693 151,852 99,891 79,391 304,666
-----------------------------------------------------------------------------------------------------
3,445,235 1,854,414 174,011 128,114 155,878 304,666
Contributions:
Participants 1,064,648 705,104 207,072 227,387 174,841 614,904
Employer 494,172 258,632 93,017 85,857 61,146 416,755
Transfer of assets from
merged plan (Note 5) 199,744 294,232 25,588 67,378 146,586 281,702
-----------------------------------------------------------------------------------------------------
1,758,564 1,257,968 325,677 380,622 382,573 1,313,361
-----------------------------------------------------------------------------------------------------
Total additions (deductions) 5,203,799 3,112,382 499,688 508,736 538,451 1,618,027
Deductions from assets
attributed to:
Benefits paid to
participants 1,338,270 537,280 149,970 90,819 144,277 583,326
-----------------------------------------------------------------------------------------------------
Net increase prior to interfund
transfers 3,865,529 2,575,102 349,718 417,917 394,174 1,034,701
Interfund transfers (net) (698,686) 131,495 (121,542) 24,260 (23,744) (84,364)
-----------------------------------------------------------------------------------------------------
Net increase (decrease) 3,166,843 2,706,597 228,176 442,177 370,430 950,337
Assets available for benefits:
Beginning of year 13,740,014 5,965,624 2,286,810 1,111,043 615,381 5,224,357
-----------------------------------------------------------------------------------------------------
End of year $16,906,857 $8,672,221 $2,514,986 $1,553,220 $985,811 $6,174,694
=====================================================================================================
FIDELITY
AMERISOURCE IKON UNISOURCE FIDELITY SPARTAN U.S. FIDELITY
CORPORATION CORPORATION CORPORATION OVERSEAS EQUITY INDEX FREEDOM INCOME
STOCK FUND STOCK FUND STOCK FUND FUND FUND FUND
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions to assets
attributed to:
Investment income:
Net appreciation
(depreciation) in
fair value of
investments $ 542,013 $(2,786,397) $(331,911) $(1,828) $ 2,087 $ (13)
Interest and dividends 7,383 -- -- 1,184 822 28
----------------------------------------------------------------------------------------------------
549,396 (2,786,397) (331,911) (644) 2,909 15
Contributions:
Participants 370,411 -- -- 5,199 9,880 1,201
Employer 137,750 -- -- 5,420 10,683 727
Transfer of assets from 195,624 -- --
merged plan (Note 5)
-----------------------------------------------------------------------------------------------------
703,785 -- -- 10,619 20,563 1,928
----------------------------------------------------------------------------------------------------
Total additions (deductions) 1,253,181 (2,786,397) (331,911) 9,975 23,472 1,943
Deductions from assets
attributed to:
Benefits paid to
participants 197,671 352,374 100,542 -- 661 --
----------------------------------------------------------------------------------------------------
Net increase prior to interfund
transfers 1,055,510 (3,138,771) (432,453) 9,975 22,811 1,943
Interfund transfers (net) 823,536 (107,805) (62,389) 21,869 92,467 624
----------------------------------------------------------------------------------------------------
Net increase (decrease) 1,879,046 (3,246,576) (494,842) 31,844 115,278 2,567
Assets available for benefits:
Beginning of year 1,253,357 6,196,296 1,222,756 -- -- --
-----------------------------------------------------------------------------------------------------
End of year $3,132,403 $ 2,949,720 $ 727,914 $31,844 $115,278 $2,567
====================================================================================================
FIDELITY FIDELITY FIDELITY FIDELITY
FREEDOM 2000 FREEDOM 2010 FREEDOM 2020 FREEDOM 2030
FUND FUND FUND FUND TOTAL
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions to assets
attributed to:
Investment income:
Net appreciation
(depreciation) in
fair value of
investments $ (54) $ (43) $ (40) $(4,519) $ 1,310,294
Interest and dividends 67 52 40 1,914 2,182,809
---------------------------------------------------------------------------------------
13 9 (2,605) 3,493,103
Contributions:
Participants 1,182 1,518 747 3,837 3,387,931
Employer 605 570 2,842 3,405 1,571,581
Transfer of assets from -- -- -- -- 1,210,854
merged plan (Note 5)
---------------------------------------------------------------------------------------
1,787 2,088 3,589 7,242 6,170,366
---------------------------------------------------------------------------------------
Total additions (deductions) 1,800 2,097 3,589 4,637 9,663,469
Deductions from assets
attributed to:
Benefits paid to
participants -- -- -- -- 3,495,190
---------------------------------------------------------------------------------------
Net increase prior to interfund
transfers 1,800 2,097 3,589 4,637 6,168,279
Interfund transfers (net) 1,149 500 755 1,875 --
---------------------------------------------------------------------------------------
Net increase (decrease) 2,949 2,597 4,344 6,512 6,168,279
Assets available for benefits:
Beginning of year -- -- -- -- 37,615,638
---------------------------------------------------------------------------------------
End of year $2,949 $2,597 $4,344 $ 6,512 $43,783,917
=======================================================================================
</TABLE>
See accompanying notes.
4
<PAGE>
AMERISOURCE CORPORATION
EMPLOYEE INVESTMENT PLAN
Statements of Changes in Assets Available for Benefits, With Fund Information
Year ended December 31, 1996
<TABLE>
<CAPTION>
FIDELITY
FIDELITY FIDELITY FIDELITY FIDELITY RETIREMENT
MAGELLAN EQUITY-INCOME INTERMEDIATE OTC FIDELITY MONEY MARKET
FUND FUND BOND FUND PORTFOLIO ASSET MANAGER PORTFOLIO
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions to assets attributed to:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ (662,878) $ 614,609 $ (77,236) $ 52,887 $ 16,231 $ --
Interest and dividends 2,081,557 356,412 151,710 118,354 42,828 249,330
--------------------------------------------------------------------------------------------
1,418,679 971,021 74,474 171,241 59,059 249,330
Contributions:
Participants 901,211 411,333 160,723 122,417 103,348 363,180
Employer 382,574 170,312 72,790 58,628 34,884 166,458
--------------------------------------------------------------------------------------------
1,283,785 581,645 233,513 181,045 138,232 529,638
--------------------------------------------------------------------------------------------
Total additions 2,702,464 1,552,666 307,987 352,286 197,291 778,968
Deductions from assets attributed to:
Benefits paid to participants 1,191,204 444,602 188,500 42,860 26,490 773,808
--------------------------------------------------------------------------------------------
Net increase prior to interfund 1,511,260 1,108,064 119,487 309,426 170,801 5,160
transfers
Interfund transfers (net) (977,085) 370,573 (245,473) 235,502 (34,436) 203,656
--------------------------------------------------------------------------------------------
Net increase (decrease) 534,175 1,478,637 (125,986) 544,928 136,365 208,816
Assets available for benefits:
Beginning of year 13,205,839 4,486,987 2,412,796 566,115 479,016 5,015,541
--------------------------------------------------------------------------------------------
End of year $13,740,014 $5,965,624 $2,286,810 $1,111,043 $615,381 $5,224,357
============================================================================================
AMERISOURCE IKON UNISOURCE
CORPORATION CORPORATION CORPORATION
STOCK FUND STOCK FUND STOCK FUND TOTAL
-----------------------------------------------------------------
Additions to assets attributed to:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ 350,985 $1,953,709 $ 71,305 $2,319,612
Interest and dividends -- -- -- 3,000,191
-----------------------------------------------------------------
350,985 1,953,709 71,305 5,319,803
Contributions:
Participants 141,536 -- -- 2,203,748
Employer 81,810 -- -- 967,456
-----------------------------------------------------------------
223,346 -- -- 3,171,204
-----------------------------------------------------------------
Total additions 574,331 1,953,709 71,305 8,491,007
Deductions from assets attributed to:
Benefits paid to participants 14,619 542,400 -- 3,224,483
-----------------------------------------------------------------
Net increase prior to interfund
transfers 559,712 1,411,309 71,305 5,266,524
Interfund transfers (net) 693,645 (1,397,833) 1,151,451 --
-----------------------------------------------------------------
Net increase (decrease) 1,253,357 13,476 1,222,756 5,266,524
Assets available for benefits:
Beginning of year -- 6,182,820 -- 32,349,114
End of year $ 1,253,357 $ 6,196,296 $ 1,222,756 $37,615,638
=================================================================
</TABLE>
See accompanying notes.
5
<PAGE>
AMERISOURCE CORPORATION
EMPLOYEE INVESTMENT PLAN
Notes to Financial Statements
Years ended December 31, 1997 and 1996
1. DESCRIPTION OF PLAN
The following description of the AmeriSource Corporation Employee Investment
Plan (Plan) provides only general information. Participants should refer to the
Plan agreement for a more complete description of the Plan's provisions.
GENERAL
The Plan is a defined contribution plan. Participation is limited to salaried
office or sales employees and certain hourly personnel of the Company who have
at least one year of service and are age twenty-one or older. Effective October
1, 1997, the Plan was amended to allow participation after the later of six
months of continuous employment or 1,000 hours of service during twelve
consecutive months beginning with the first hour of service. The Plan is subject
to the provisions of the Employee Retirement Income Security Act of 1974
(ERISA).
CONTRIBUTIONS
Prior to October 1, 1997, participants could contribute between 2% and 6% of
pretax annual compensation, as defined in the Plan. Effective October 1, 1997,
the Plan was amended to increase allowable deferral percentage to between 2% and
18% of pretax annual compensation, as defined by the Plan. The Company
contributed an amount equal to 60% and 50% of the participants' contributions up
to 6% to the Plan for 1997 and 1996, respectively. Additional amounts may be
contributed at the option of the Company's Board of Directors.
PARTICIPANT ACCOUNTS
Each participant's account is credited with the participant's contributions and
allocations of (a) the Company's contributions and (b) Plan earnings.
Allocations are based on participant earnings or account balances, as defined.
Forfeited balances of terminated participants' nonvested accounts are used to
reduce future company contributions. The balance of forfeited nonvested accounts
was not material as of December 31, 1997 or 1996. The benefit to which a
participant is entitled is the benefit that can be provided from the
participant's account.
6
<PAGE>
AMERISOURCE CORPORATION
EMPLOYEE INVESTMENT PLAN
Notes to Financial Statements(continued)
1. DESCRIPTION OF PLAN (CONTINUED)
Vesting
Participants are immediately vested in their contributions plus actual earnings
thereon. Vesting in the Company contribution portion of their accounts plus
actual earnings thereon is based on years of continuous service. A participant
is 100 percent vested after five years of credited service.
INVESTMENT OPTIONS
Upon enrollment in the Plan, a participant may direct employer and employee
contributions in 5% increments in any of the following investment options.
Fidelity Magellan Fund Fund seeks long-term capital appreciation through
investing in common stocks and securities convertible to common stock.
Fidelity Equity-Income Fund Fund seeks reasonable income by investing for
yields that exceed the yield on the securities comprising the S&P 500.
Fidelity Intermediate Bond Fund Fund seeks a high level of current income by
investing in corporate debt obligations that are rated at least Baa by Moody's
Investors Service Inc. or BBB by Standard & Poor's Corporation.
Fidelity OTC Portfolio Fund seeks long-term capital appreciation through
mainly investing in common stocks, though it can invest in the entire array of
securities the OTC market offers, from preferred stocks to debt obligations.
Fidelity Asset Manager Fund seeks high total return with reduced risk over
the long term by investing in diverse holdings of domestic and foreign stocks,
bonds, and short-term instruments of the U.S. and foreign issuers, including
those in emerging markets.
Fidelity Retirement Money Market Portfolio Fund seeks as high a level of
current income as is consistent with the preservation of capital and
liquidity. The Fund invests in high-quality, U.S. dollar-denominated money
market instruments of U.S. and foreign issuers.
7
<PAGE>
AMERISOURCE CORPORATION
EMPLOYEE INVESTMENT PLAN
Notes to Financial Statements(continued)
1. DESCRIPTION OF PLAN (CONTINUED)
AmeriSource Corporation Stock Fund Consists of the Plan Sponsor's common
stock.
IKON and Unisource Corporation Stock Funds These funds invest in the common
stock of IKON and Unisource Corporations. These funds are frozen as to new
contributions and balances may only be withdrawn.
The following became available investment options during 1997:
Fidelity Overseas Fund Fund seeks long-term growth of capital by investing
mainly in equity securities outside the U.S.
Fidelity Spartan U.S. Equity Index Fund Fund seeks a total return which
corresponds to that of the Standard & Poor's 500 Index.
Fidelity Freedom Income Fund Fund seeks a high level of current income, and
as a secondary objective, capital appreciation by investing in a combination
of Fidelity funds. This Fund is targeted to investors already in retirement.
Fidelity Freedom 2000 Fund Fund seeks a high total return by investing in a
combination of Fidelity equity, fixed-income, and money market funds and
allocates its assets among these funds according to an asset allocation
strategy that becomes increasingly conservative as Freedom 2000 approaches its
target retirement date. This Fund is targeted to investors expected to retire
around the year 2000.
Fidelity Freedom 2010 Fund Fund seeks a high total return by investing in a
combination of Fidelity equity, fixed-income, and money market funds and
allocates its assets among these funds according to an asset allocation
strategy that becomes increasingly conservative as Freedom 2010 approaches its
target retirement date. This Fund is targeted to investors expected to retire
around the year 2010.
Fidelity Freedom 2020 Fund Fund seeks a high total return by investing in a
combination of Fidelity equity, fixed-income, and money market funds and
allocates its assets among these funds according to an asset allocation
strategy that becomes increasingly conservative as Freedom 2020 approaches its
target retirement date. This Fund is targeted to investors expected to retire
around the year 2020.
8
<PAGE>
AMERISOURCE CORPORATION
EMPLOYEE INVESTMENT PLAN
Notes to Financial Statements(continued)
1. DESCRIPTION OF PLAN (CONTINUED)
Fidelity Freedom 2030 Fund Fund seeks a high total return by investing in a
combination of Fidelity equity, fixed-income, and money market funds and
allocates its assets among these funds according to an asset allocation
strategy that becomes increasingly conservative as Freedom 2030 approaches its
target retirement date. This Fund is targeted to investors expected to retire
around the year 2030.
Participants may change their investment options as often as they choose.
PAYMENT OF BENEFITS
On termination of service if the participant's account is less than $3,500, a
participant will receive a lump-sum amount equal to the vested value of his or
her account. The participant will have the option to leave his or her account in
the Plan if their balance is greater than $3,500. The Plan was amended December
31, 1997, to increase this amount to $5,000 effective January 1, 1998.
ADMINISTRATIVE EXPENSES
Administrative expenses of the Plan are paid by the Company.
2. SUMMARY OF ACCOUNTING POLICIES
INVESTMENT VALUATION AND INCOME RECOGNITION
The Plan's investments are stated at fair value. The shares of registered
investment companies are valued at quoted market prices which represent the net
asset values of shares held by the Plan at year end. The common stock is valued
at the closing value of the last day of the Plan year.
Purchases and sales of securities are recorded on a trade-date basis. Interest
income is recorded on the accrual basis. Dividends are recorded on the ex-
dividend date.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates that affect the
amounts reported in the financial statements and accompanying notes. Actual
results could differ from those estimates.
9
<PAGE>
AMERISOURCE CORPORATION
EMPLOYEE INVESTMENT PLAN
Notes to Financial Statements(continued)
3. INVESTMENTS
The Plan's investments are held by Fidelity Investments and are presented in the
following table. Investments that represent 5 percent or more of the Plan's net
assets are separately identified.
DECEMBER 31
1997 1996
-------------------------------
Investments at fair value as determined by
Quoted Market Price--
Shares of registered investment companies:
Fidelity Investments:
Magellan Fund, 171,215 and 164,793
shares, respectively** $16,311,626 $13,290,541
Equity-Income Fund, 159,295 and
134,573 shares, respectively** 8,348,672 5,763,742
Intermediate Bond Fund, 236,309 and
218,302 shares, respectively** 2,403,257 2,200,487
OTC Portfolio, 42,987 and 31,853
shares, respectively 1,437,923 1,041,900
Asset Manager, 49,477 and 34,781
shares, respectively 907,900 572,849
Retirement Money Market Portfolio,
5,722,710 and 5,028,971 shares,
respectively** 5,722,710 5,028,971
Overseas Fund, 754 shares 24,545 --
Fidelity Spartan U.S. Equity Index
Fund, 2,894 shares 101,243 --
Freedom Income Fund, 145 shares 1,541 --
Freedom 2000 Fund, 183 shares 2,052 --
Freedom 2010 Fund, 132 shares 1,539 --
Freedom 2020 Fund, 99 shares 1,183 --
Freedom 2030 Fund, 173 shares 2,072 --
-------------------------------
35,266,263 27,898,490
10
<PAGE>
3. INVESTMENTS (CONTINUED)
Common stock:
AmeriSource Corporation, 50,705 and 23,957
shares, respectively** $ 2,953,537 $ 1,155,955
IKON Corporation, 104,879 and 120,025
shares, respectively** 2,949,720 6,196,296
Unisource Corporation, 51,082 and 60,013
shares, respectively 727,914 1,222,756
6,631,171 8,575,007
Total investments at fair value $41,897,434 $36,473,497
===============================
**Investment represents 5 percent or more of the Plan's assets
During 1997 and 1996, the Plan's investments (including investments bought,
sold, and held during the year) appreciated (depreciated) in value by $1,310,294
and $2,319,612, respectively.
DECEMBER 31
1997 1996
-----------------------------------
Investments at fair value as determined
by Quoted Market Price:
Fidelity Investments:
Magellan Fund $ 2,368,409 $ (662,878)
Equity-Income Fund 1,395,721 614,609
Intermediate Bond Fund 22,159 (77,236)
OTC Portfolio 28,223 52,887
Asset Manager 76,487 16,231
AmeriSource Corporation Stock Fund 542,013 350,985
IKON Corporation Stock Fund (2,786,397) 1,953,709
Unisource Corporation Stock Fund (331,911) 71,305
Overseas Fund (1,828) --
Spartan U.S. Equity Index Fund 2,087 --
Freedom Income Fund (13) --
Freedom 2000 Fund (54) --
Freedom 2010 Fund (43) --
Freedom 2020 Fund (40) --
Freedom 2030 Fund (4,519) --
-----------------------------------
Net change in fair value $ 1,310,294 $2,319,612
===================================
11
<PAGE>
4. PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the right
under the Plan to discontinue its contributions at any time and to terminate the
Plan subject to the provisions of ERISA. In the event of Plan termination,
participants will become 100 percent vested in their accounts.
5. ACQUIRED COMPANY PLAN MERGER
Effective April 1, 1997, the Gulf Distribution Inc. Employees' Savings Plan was
merged into the AmeriSource Employee Investment Plan. The effect of the merger
increased Plan assets approximately $1.2 million.
6. INCOME TAX STATUS
The Internal Revenue Service ruled on February 16, 1995, that the Plan qualifies
under Section 401(a) of the Internal Revenue Code (IRC) and, therefore, the
related trust is not subject to tax under present income tax law. Once
qualified, the Plan is required to operate in conformity with the IRC to
maintain its qualification. The Benefits Committee is not aware of any course of
action or series of events that have occurred that might adversely affect the
Plan's qualified status.
7. YEAR 2000 ISSUE (UNAUDITED)
The Plan Sponsor has developed a plan to modify its internal information
technology to be ready for the year 2000 and has begun converting critical data
processing systems. The project also includes determining whether third-party
service providers have reasonable plans in place to become year 2000 compliant.
The Plan Sponsor currently expects the project to be substantially complete by
early 1999. The Plan Sponsor does not expect this project to have a significant
effect on plan operations.
12
<PAGE>
AMERISOURCE CORPORATION
EMPLOYEE INVESTMENT PLAN
Line 27a--Schedule of Assets Held for Investment Purposes
December 31, 1997
<TABLE>
<CAPTION>
DESCRIPTION OF Current
IDENTITY OF ISSUE INVESTMENT COST Value
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Fidelity Investments **
Magellan Fund--171,215 shares Mutual funds $12,666,556 $16,311,626
Equity-Income Fund--159,295
shares 5,830,858 8,348,672
Intermediate Bond Fund--
236,309 shares 2,397,342 2,403,257
OTC Portfolio Fund--42,987
shares 1,352,368 1,437,923
Asset Manager Fund--49,477
shares 816,669 907,900
Retirement Money Market
Portfolio--5,722,710 shares 5,722,710 5,722,710
Overseas Fund--754 shares 26,374 24,545
Spartan U.S. Equity Index Fund--
2,894 shares 99,180 101,243
Freedom Income Fund--145 shares 1,554 1,541
Freedom 2000 Fund--183 shares 2,106 2,052
Freedom 2010 Fund--132 shares 1,582 1,539
Freedom 2020 Fund--99 shares 1,224 1,183
Freedom 2030 Fund--173 shares 2,125 2,072
----------------------------------
Total mutual funds 28,920,648 35,266,263
</TABLE>
13
<PAGE>
AMERISOURCE CORPORATION
EMPLOYEE INVESTMENT PLAN
Line 27a--Schedule of Assets Held for Investment Purposes (continued)
December 31, 1997
<TABLE>
<CAPTION>
DESCRIPTION OF Current
IDENTITY OF ISSUE INVESTMENT COST VALUE
- ------------------------------------------------------------------------------------------
Amerisource Corporation **
<S> <C> <C> <C>
Stock Fund--50,705 shares Common stock $ 2,280,969 $ 2,953,537
IKON Corporation Stock Fund--
104,879 shares Common stock 385,662 2,949,720
Unisource Corporation Stock Fund--
51,082 shares Common stock 374,753 727,914
----------------------------------
Total common stock 3,041,384 6,631,171
----------------------------------
$31,962,032 $41,897,434
==================================
</TABLE>
** Indicates party-in-interest to the Plan.
14
<PAGE>
AMERISOURCE CORPORATION
EMPLOYEE INVESTMENT PLAN
Line 27d--Schedule of Reportable Transactions
Year ended December 31, 1997
<TABLE>
<CAPTION>
IDENTITY OF PURCHASE Selling
PARTY INVOLVED DESCRIPTION OF ASSET PRICE Price COST NET GAIN
- -------------------------------------------------------------------------------------
Category (iii)--Series of transactions in excess of 5% of plan assets
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Fidelity Investments Magellan Fund
151 Purchases $3,271,349 $ -- $3,271,349 $ --
110 Sales -- 2,618,673 2,150,721 467,952
Equity-Income Fund
132 Purchases 2,438,097 -- 2,438,097 --
74 Sales -- 1,248,888 979,257 269,631
Retirement Money Market Portfolio
117 Purchases 2,210,525 -- 2,210,525 --
109 Sales -- 1,518,493 1,518,493 --
AmeriSource Corporation AmeriSource Corporation Stock Fund
81 Purchases 2,256,547 -- 2,256,547 --
44 Sales -- 1,000,975 803,658 197,317
</TABLE>
There were no category (i), (ii), or (iv) reportable transactions during 1997.
15
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employees benefit plan) have duly
caused this annual report to be signed on its behalf by the undersigned
thereunto duly authorized.
AMERISOURCE CORPORATION
EMPLOYEE INVESTMENT PLAN
(Name of Plan)
By: /s/ John A. Aberant
------------------------------
John A. Aberant
Benefits Committee
Dated: June 29, 1998
<PAGE>
EXHIBIT 23.1
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement
(Form S-8, No. 333-01951) pertaining to the AmeriSource Corporation Employee
Investment Plan of our report dated April 24, 1998, with respect to the
financial statements and schedules of the AmeriSource Corporation Employee
Investment Plan included in this Annual Report (Form 11-K) for the year ended
December 31, 1997.
ERNST & YOUNG LLP
Philadelphia, Pennsylvania
June 23, 1998
