<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, 1998
------------------------------------
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, 1998 and 1997
Contents
<TABLE>
<CAPTION>
<S> <C>
Report of Independent Auditors............................................. 1
Audited Financial Statements
Statement of Assets Available for Benefits,
With Fund Information, December 31, 1998.................................. 2
Statement of Assets Available for Benefits,
With Fund Information, December 31, 1997.................................. 3
Statement of Changes in Assets Available for Benefits,
With Fund Information, Year ended December 31, 1998....................... 4
Statement of Changes in Assets Available for Benefits,
With Fund Information, Year ended December 31, 1997....................... 5
Notes to Financial Statements.............................................. 6
Supplemental Schedules
Line 27a--Schedule of Assets Held for Investment Purposes..................10
Line 27d--Schedule of Reportable Transactions..............................11
Signatures.................................................................12
Exhibit Index..............................................................13
</TABLE>
Exhibits
Consent of Independent Auditors............................................ 1
<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, 1998 and
1997, 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, 1998 and 1997, 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 financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment purposes as of December 31, 1998 and reportable transactions
for the year then ended, are presented for purposes of additional analysis and
are not a required part of the financial statements but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. These supplemental schedules are the responsibility of the Plan's
management. The 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 financial statements and, in
our opinion, are fairly stated in all material respects in relation to the
financial statements taken as a whole.
/s/Ernst & Young LLP
June 24, 1999
<PAGE>
AmeriSource Corporation
Employee Investment Plan
Statement of Assets Available for Benefits, With Fund Information
December 31, 1998
<TABLE>
<CAPTION>
FIDELITY
FIDELITY FIDELITY FIDELITY RETIREMENT
FIDELITY EQUITY- INTERMEDIATE FIDELITY ASSET MANAGER MONEY MARKET
MAGELLAN FUND INCOME FUND BOND FUND OTC PORTFOLIO FUND PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments:
At fair value:
Shares of registered
investment companies $21,430,570 $9,082,813 $2,726,839 $2,145,492 $1,059,415 $6,801,071
Common stock funds - - - - - -
- ---------------------------------------------------------------------------------------------------------------------------------
Total investments 21,430,570 9,082,813 2,726,839 2,145,492 1,059,415 6,801,071
Receivables:
Participants' contribution 92,905 55,162 19,082 21,326 13,536 33,184
Employer's contribution 501,857 262,346 98,443 101,809 62,355 185,700
Total receivables 594,762 317,508 117,525 123,135 75,891 218,884
Assets available for benefits $22,025,332 $9,400,321 $2,844,364 $2,268,627 $1,135,306 $7,019,955
=================================================================================================================================
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
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments:
At fair value:
Shares of registered
investment companies $ - $ - $ - $ 74,932 $ 505,682 $ 37,431
Common stock funds 2,075,496 746,736 299,962 - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Total investments 2,075,496 746,736 299,962 74,932 505,682 37,431
Receivables:
Participants' contribution 27,281 - - 2,764 6,594 650
Employer's contribution 155,730 - - 12,289 28,943 2,397
Total receivables 183,011 - - 15,053 35,537 3,047
Assets available for benefits $ 2,258,507 $ 746,736 $ 299,962 $ 89,985 $ 541,219 $ 40,478
==================================================================================================================================
FIDELITY FIDELITY FIDELITY FIDELITY
FREEDOM FREEDOM FREEDOM FREEDOM
2000 FUND 2010 FUND 2020 FUND 2030 FUND TOTAL
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments:
At fair value:
Shares of registered
investment companies $ 123,537 $ 162,679 $ 25,289 $ 33,794 $44,209,544
Common stock funds - - - - 3,122,194
- -----------------------------------------------------------------------------------------------------------------------------------
Total investments 123,537 162,679 25,289 33,794 47,331,738
Receivables:
Participants' contribution 2,173 2,096 1,639 1,993 280,385
Employer's contribution 4,357 8,631 6,684 9,993 1,441,534
Total receivables 6,530 10,727 8,323 11,986 1,721,919
Assets available for benefits $ 130,067 $173,406 $33,612 $45,780 $49,053,657
==================================================================================================================================
</TABLE>
See accompanying notes.
<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
MAGELIAN EQUITY- INTERMEDIATE OTC ASSET MONEY MARKET
FUND INCOME FUND BOND FUND PORTFOLIO MANAGER FUND 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.
CORPORATION CORPORATION CORPORATION OVERSEAS EQUITY INDEX
STOCK FUND STOCK FUND STOCK FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments:
At fair value:
Shares of registered
investment companies $ - $ - $ - $ 24,545 $101,243
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
Receivables:
Participants' contribution 41,116 - - 1,879 3,352
Employer's contribution 137,750 - - 5,420 10,683
Total receivables 178,866 - - 7,299 14,035
Assets available for benefits $ 3,132,403 $2,949,720 $ 727,914 $ 31,844 $115,278
==================================================================================================================================
FIDELITY FIDELITY FIDELITY FIDELITY FIDELITY
FREEDOM FREEDOM FREEDOM FREEDOM FREEDOM
INCOME FUND 2000 FUND 2010 FUND 2020 FUND 2030 FUND TOTAL
- ----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments:
At fair value:
Shares of registered
investment companies $ 1,541 $2,052 $ 1,539 $ 1,183 $ 2,072 $35,266,263
Common stock funds - - - - - 6,631,171
- ----------------------------------------------------------------------------------------------------------------------------------
Total investments 1,541 2,052 1,539 1,183 2,072 41,897,434
Receivables:
Participants' contribution 299 292 488 319 1,035 315,633
Employer's contribution 727 605 570 2,842 3,405 1,570,850
Total receivables 1,026 897 1,058 3,161 4,440 1,886,483
Assets available for benefits $ 2,567 $2,949 $ 2,597 $ 4,344 $ 6,512 $43,783,917
==================================================================================================================================
</TABLE>
See accompanying notes.
<PAGE>
AmeriSource Corporation
Employee Investment Plan
Statements of Changes in Assets Available for Benefits, With Fund Information
Year ended December 31, 1998
<TABLE>
<CAPTION>
FIDELITY
FIDELITY RETIREMENT
FIDELITY FIDELITY FIDELITY FIDELITY ASSET MONEY AMERISOURCE IKON
MAGELLAN EQUITY- INTERMEDIATE OTC MANAGER MARKET CORPORATION CORPORATION
FUND INCOME FUND BOND FUND PORTFOLIO FUND PORTFOLIO STOCK FUND STOCK FUND
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions:
Investment income:
Net appreciation
(depreciation) in
fair value of
investments $ 4,330,245 $ 468,158 $ 22,340 $ 480,188 $ (43,265) $ - $ 268,738 $(1,900,230)
Interest and dividends 1,030,695 523,004 159,378 115,232 193,508 348,373 3,747 -
------------------------------------------------------------------------------------------------
5,360,940 991,162 181,718 595,420 150,243 348,373 272,485 (1,900,230)
Contributions:
Participants 1,158,658 720,772 220,400 274,516 173,343 427,692 369,622 -
Employer 501,508 262,346 98,444 101,809 62,355 186,057 155,726 -
------------------------------------------------------------------------------------------------
1,660,166 983,118 318,844 376,325 235,698 613,749 525,348 -
------------------------------------------------------------------------------------------------
Total additions
(deductions) 7,021,106 1,974,280 500,562 971,745 385,941 962,122 797,833 (1,900,230)
Deductions:
Benefits paid
to participants 1,830,351 1,278,340 261,054 313,427 98,629 1,082,274 256,362 217,245
------------------------------------------------------------------------------------------------
Net increase (decrease)
prior to interfund
transfers 5,190,755 695,940 239,508 658,318 287,312 (120,152) 541,471 (2,117,475)
Interfund transfers (net) (72,280) 32,160 89,870 57,089 (137,817) 965,413 (1,415,367) (85,509)
------------------------------------------------------------------------------------------------
Net increase (decrease) 5,118,475 728,100 329,378 715,407 149,495 845,261 (873,896) (2,202,984)
Assets available for
benefits:
Beginning of year 16,906,857 8,672,221 2,514,986 1,553,220 985,811 6,174,694 3,132,403 2,949,720
------------------------------------------------------------------------------------------------
End of year $22,025,332 $9,400,321 $2,844,364 $2,268,627$1,135,306 $7,019,955 $ 2,258,507 $ 746,736
================================================================================================
FIDELITY
UNISOURCE FIDELITY SPARTAN U.S. FIDELITY FIDELITY FIDELITY FIDELITY
CORPORATION OVERSEAS EQUITY INDEX FREEDOM FREEDOM FREEDOM FREEDOM
STOCK FUND FUND FUND INCOME FUND 2000 FUND 2010 FUND 2020 FUND
-------------------------------------------------------------------------------------
Additions:
Investment income:
Net appreciation
(depreciation) in
fair value of
investments $(326,740) $ 475 $ 65,418 $ 988 $ 2,692 $ 4,760 $ 1,581
Interest and dividends - 1,688 6,521 729 5,547 7,023 994
-------------------------------------------------------------------------------------
(326,740) 2,163 71,939 1,717 8,239 11,783 2,575
Contributions:
Participants - 28,343 61,514 5,380 11,057 18,695 14,367
Employer - 12,286 28,942 2,396 4,357 8,631 6,684
-------------------------------------------------------------------------------------
- 40,629 90,456 7,776 15,414 27,326 21,051
-------------------------------------------------------------------------------------
Total additions
(deductions) (326,740) 42,792 162,395 9,493 23,653 39,109 23,626
Deductions:
Benefits paid
to participants 61,026 2,884 20,375 24 - 1,709 19,794
-------------------------------------------------------------------------------------
Net increase (decrease)
prior to interfund
transfers (387,766) 39,908 142,020 9,469 23,653 37,400 3,832
Interfund transfers (net) (40,186) 18,233 283,921 28,442 103,465 133,409 25,436
-------------------------------------------------------------------------------------
Net increase (decrease) (427,952) 58,141 425,941 37,911 127,118 170,809 29,268
Assets available for
benefits:
Beginning of year 727,914 31,844 115,278 2,567 2,949 2,597 4,344
-------------------------------------------------------------------------------------
End of year $ 299,962 $89,985 $541,219 $40,478 $130,067 $173,406 $33,612
=====================================================================================
FIDELITY
FREEDOM
2030 FUND TOTAL
---------------------------------
Additions:
Investment income:
Net appreciation
(depreciation) in
fair value of
investments $ 482 $ 3,375,830
Interest and dividends 1,261 2,397,700
---------------------------------
1,743 5,773,530
Contributions:
Participants 31,377 3,515,736
Employer 9,993 1,441,534
---------------------------------
41,370 4,957,270
---------------------------------
Total additions
(deductions)
43,113 10,730,800
Deductions:
Benefits paid
to participants 17,566 5,461,060
---------------------------------
Net increase (decrease)
prior to interfund
transfers 25,547 5,269,740
Interfund transfers (net) 13,721 -
---------------------------------
Net increase (decrease) 39,268 5,269,740
Assets available for
benefits:
Beginning of year 6,512 43,783,917
---------------------------------
End of year $45,780 $49,053,657
======================================================================
</TABLE>
SEE ACCOMPANYING NOTES.
<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 RETIREMENT
FIDELITY FIDELITY FIDELITY FIDELITY ASSET MONEY
MAGELIAN EQUITY- INTERMEDIATE OTC MANAGER MARKET
FUND INCOME FUND BOND FUND PORTFOLIO FUND PORTFOLIO
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions:
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 1,065,379 705,104 207,072 227,387 174,841 614,904
Employer 493,441 258,632 93,017 85,857 61,146 416,755
Transfer of assets from 199,744 294,232 25,588 67,378 146,586 281,702
merged plan (Note 5)
- --------------------------------------------------------------------------------------------------------------------------------
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:
Benefits paid to
participants 1,338,270 537,280 149,970 90,819 144,277 583,326
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 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
STOCK FUND STOCK FUND STOCK FUND FUND FUND INCOME FUND
- ----------------------------------------------------------------------------------------------------------------------------------
Additions:
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:
Benefits paid to
participants 197,671 352,374 100,542 - 661 -
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 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 FREEDOM FREEDOM FREEDOM
2000 FUND 2010 FUND 2020 FUND 2030 TOTAL
- -----------------------------------------------------------------------------------------------------------------------------------
Additions:
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 3,388,662
Employer 605 570 2,842 3,405 1,570,850
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:
Benefits paid to
participants - - - - 3,495,190
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 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.
<PAGE>
AmeriSource Corporation
Employee Investment Plan
Notes to Financial Statements
Years ended December 31, 1998 and 1997
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% of the participants' contributions up to 6%
to the Plan for 1998 and 1997. Additional amounts may be contributed at the
option of the Company's Board of Directors.
Upon enrollment, a participant may direct employee and employer contributions in
5% increments to any of the Plan's fund options. Participants may change their
investment options at anytime.
<PAGE>
AmeriSource Corporation
Employee Investment Plan
Notes to Financial Statements (continued)
1. Description of Plan (continued)
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, 1998 or 1997. The benefit to which a
participant is entitled is the benefit that can be provided from the
participant's account.
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. Participants
vest 25% per year after two years of credited service in the Company's
contribution until they are 100 percent vested after five years of credited
service.
Payment of Benefits
On termination of service if the participant's account is less than $5,000
($3,500 prior to January 1, 1998), 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
$5,000 ($3,500 prior to January 1, 1998).
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.
Administrative Expenses
Administrative expenses of the Plan are paid by the Company.
<PAGE>
AmeriSource Corporation
Employee Investment Plan
Notes to Financial Statements (continued)
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.
3. Investments
The Plan's investments are held by Fidelity Investments. Investments that
represent 5 percent or more of the Plan's net assets are separately identified.
4. Acquired Company Plan Merger
Effective April 1, 1997, the Gulf Distribution Inc. Employees' Savings Plan was
merged into the AmeriSource Corporation Employee Investment Plan. The merger
increased Plan assets by approximately $1.2 million.
5. Income Tax Status
The Plan has received a determination letter from the Internal Revenue Service
dated February 16, 1995, stating that the Plan is qualified under Section 401(a)
of the Internal Revenue Code ("the Code") and, therefore, the related trust is
exempt from taxation. Once qualified, the Plan is required to operate in
conformity with the Code to maintain its qualification. The Plan Administrator
believes the Plan is being operated in compliance with the applicable
requirements of the Code and, therefore, believes that the Plan is qualified and
the related trust is tax exempt.
<PAGE>
AmeriSource Corporation
Employee Investment Plan
Notes to Financial Statements (continued)
6. Year 2000 Issue (Unaudited)
The Plan Sponsor has determined that it will be necessary to take certain steps
in order to ensure that the Plan's information systems are prepared to handle
year 2000 dates. The Plan Sponsor is taking a two-phase approach. The first
phase addresses internal systems that must be modified or replaced to function
properly. Both internal and external resources are being utilized to replace or
modify existing software applications, and test the software and equipment for
the year 2000 modifications. The Plan Sponsor anticipates substantially
completing this phase of the project by June 1999. Costs associated with
modifying software and equipment are not estimated to be significant and will be
paid by the Plan Sponsor.
For the second phase of the project, Plan management established formal
communications with its third-party service providers to determine that they
have developed plans to address their own year 2000 problems as they relate to
the Plan's operations. All third-party service providers have indicated that
they will be year 2000 compliant by early 1999. If modifications of data
processing systems of either the Plan, the Plan Sponsor, or its service
providers are not completed timely, the year 2000 problem could have a material
impact on the operations of the Plan. Plan management has not developed a
contingency plan, because it is confident that all systems will be year 2000
ready.
<PAGE>
AmeriSource Corporation
Employee Investment Plan
Line 27a - Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
Description of
Investment, Including
Identity of Issue, Maturity Date, Rate of
Borrower, Lessor, or Interest, Par or Maturity Current
Similar Party Value Cost Value
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
*Fidelity Investments
Magellan Fund 177,376 shares $14,022,850 $21,430,570
Equity-Income Fund 163,507 shares 6,621,060 9,082,813
Intermediate Bond Fund 265,515 shares 2,701,817 2,726,839
OTC Portfolio Fund 49,174 shares 1,613,317 2,145,492
Asset Manager Fund 60,920 shares 1,057,606 1,059,415
Retirement Money
Market Portfolio 6,799,541 shares 6,801,071 6,801,071
Overseas Fund 2,083 shares 74,953 74,932
Spartan U.S. Equity
Index Fund 11,503 shares 440,888 505,682
Freedom Income Fund 3,348 shares 36,458 37,431
Freedom 2000 Fund 10,012 shares 120,900 123,537
Freedom 2010 Fund 12,232 shares 158,013 162,679
Freedom 2020 Fund 1,813 shares 23,572 25,289
Freedom 2030 Fund 2,433 shares 31,404 33,794
----------------------------------
33,703,909 44,209,544
</TABLE>
AmeriSource Corporation
Employee Investment Plan
Line 27a - Schedule of Assets Held for Investment Purposes (continued)
December 31, 1998
<TABLE>
<CAPTION>
Description of
Investment, Including
Identity of Issue, Maturity Date, Rate of
Borrower, Lessor, or Interest, Par or Maturity Current
Similar Party Value Cost Value
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
*AmeriSource Corporation
Stock Fund 31,931 shares of common
stock $ 1,485,615 $ 2,075,496
IKON Corporation Stock 87,205 shares of common
Fund stock 321,873 746,736
Unisource Corporation 41,374 shares of common
Stock Fund stock 304,053 299,962
_________________________________
2,111,541 3,122,194
_________________________________
$35,815,450 $47,331,738
=================================
</TABLE>
* Indicates party-in-interest to the Plan.
<PAGE>
AmeriSource Corporation
Employee Investment Plan
Line 27d - Schedule of Reportable Transactions
Year ended December 31, 1998
<TABLE>
<CAPTION>
CURRENT VALUE
OF ASSET ON
IDENTITY OF PURCHASE SELLING COST OF TRANSACTION
PARTY INVOLVED DESCRIPTION OF ASSET PRICE PRICE ASSET DATE NET GAIN
- ---------------------------------------------------------------------------------------------------------------------------
Category (iii) - Series of transactions in excess of 5% of plan assets
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Fidelity Investments Magellan Fund $3,568,553 $ - $3,568,553 $3,568,553 $ -
- 2,779,854 2,212,259 2,779,854 567,595
Equity-Income Fund 2,282,965 - 2,282,965 2,282,965 -
- 2,016,982 1,492,763 2,016,982 524,219
Retirement Money Market
Portfolio 3,008,191 - 3,008,191 3,088,191 -
- 1,929,830 1,929,830 1,929,830 -
AmeriSource Corporation AmeriSource Corporation Stock
Fund 830,741 - 830,741 830,741 -
- 1,977,524 1,626,095 1,977,524 351,429
</TABLE>
There were no category (i), (ii), or (iv) reportable transactions during 1998.
"Lease Rental" and "Expenses Incurred with Transaction" are not applicable.
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employee 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, 1999
<PAGE>
Exhibit Index
-------------
Exhibit Page
- ------- ----
23 Consent of Ernst & Young LLP. . . . . . . . . . . 1
<PAGE>
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 June 24, 1999, 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, 1998.
/s/ Ernst & Young LLP
Philadelphia, Pennsylvania
June 24, 1999
