<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
[ X ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended: December 31, 1997
----------------------------------------------
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _______________ to _______________
Commission file number 0-23214.
-------
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
SAMSONITE CORPORATION EMPLOYEE SAVINGS TRUST
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
SAMSONITE CORPORATION
11200 EAST 45TH AVENUE
DENVER, COLORADO 80239
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan
Administrator has duly caused this annual report to be signed on its behalf by
the undersigned hereunto duly authorized.
Samsonite Corporation Employee Savings Trust
--------------------------------------------
Date: July 13, 1998 By: /s/Richard H. Wiley
-------------------- ---------------------------------------
Richard H. Wiley
Samsonite Corporation
Chief Financial Officer and Treasurer
<PAGE>
SAMSONITE CORPORATION
EMPLOYEE SAVINGS TRUST
CONTENTS
Report of Independent Certified Public Accountants 3
Financial Statements
Statement of Net Assets Available for Benefits 4 - 5
Statement of Changes in Net Assets Available for Benefits 6 - 7
Summary of Accounting Policies 8
Notes to Financial Statements 9 - 14
Schedule 1 - Item 27a - Schedule of Assets
Held for Investment Purposes 15
Schedule 2 - Item 27d - Schedule of Reportable
Transactions 16
Exhibit 23 - Consent of BDO Seidman LLP
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Plan Administrator of Samsonite Corporation
Employee Savings Trust
We have audited the accompanying statements of net assets available for benefits
of the Samsonite Corporation Employee Savings Trust (the "Plan") as of December
31, 1997 and 1996 and the statements of changes in net assets available for
benefits for the years ended December 31, 1997 and 1996. 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. 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 benefits of the Samsonite
Corporation Employee Savings Trust at December 31, 1997 and 1996, and the
changes in its net assets available for benefits for the years then ended, in
conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules listed in the
accompanying table of contents 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 Rule and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The supplemental schedules 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.
/s/ BDO Seidman, LLP
Denver, Colorado
June 19, 1998
<PAGE>
SAMSONITE CORPORATION
EMPLOYEE SAVINGS TRUST
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
Investment Funds
--------------------------------------------------------------------------------------
Fixed Equity Aggressive
Income Income Balanced Indexed Growth Growth
December 31, 1997 Fund Fund Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Cash $ - $ - $ - $ - $ - $ -
Investments, at fair value (Note 2):
Guaranteed Income Fund 11,207,910 - - - - -
Lifetime 60 - - 40,727 - - -
Lifetime 50 - - 255,364 - - -
Lifetime 40 - - 5,213,657 - - -
Lifetime 30 - - 33,960 - - -
Lifetime 20 - - 9,755 - - -
Fidelity Equity Income II Fund - 9,716,371 - - - -
Stock Market Index Fund - - - 5,884,588 - -
Fidelity Contra Fund - - - - 2,434,009 -
Founders Growth Fund - - - - 575,926 -
PBHG Growth Fund - - - - - 300,282
Janus Worldwide Fund - - - - - -
Samsonite Stock - - - - - -
Loans to participants - - - - - -
- ---------------------------------------------------------------------------------------------------------------------------------
Total investments 11,207,910 9,716,371 5,553,463 5,884,588 3,009,935 300,282
- ---------------------------------------------------------------------------------------------------------------------------------
Other receivables - 246 153 - - -
- ---------------------------------------------------------------------------------------------------------------------------------
Total assets 11,207,910 9,716,617 5,553,616 5,884,588 3,009,935 300,282
- ---------------------------------------------------------------------------------------------------------------------------------
Interfund receivable/payable - - - (167,100) - -
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets available for benefits $ 11,207,910 $ 9,716,617 $ 5,553,616 $ 5,717,488 $ 3,009,935 $ 300,282
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------
International Samsonite Participant
December 31, 1997 Fund Stock Total Loans Total
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Assets:
Cash $ - $ 19,243 $ 19,243 $ - $ 19,243
Investments, at fair value (Note 2):
Guaranteed Income Fund - - 11,207,910 - 11,207,910
Lifetime 60 - - 40,727 - 40,727
Lifetime 50 - - 255,364 - 255,364
Lifetime 40 - - 5,213,657 - 5,213,657
Lifetime 30 - - 33,960 - 33,960
Lifetime 20 - - 9,755 - 9,755
Fidelity Equity Income II Fund - - 9,716,371 - 9,716,371
Stock Market Index Fund - - 5,884,588 - 5,884,588
Fidelity Contra Fund - - 2,434,009 - 2,434,009
Founders Growth Fund - - 575,926 - 575,926
PBHG Growth Fund - - 300,282 - 300,282
Janus Worldwide Fund 1,871,981 - 1,871,981 - 1,871,981
Samsonite Stock - 194,961 194,961 - 194,961
Loans to participants - - - 835,703 835,703
- ---------------------------------------------------------------------------------------------------------------
Total investments 1,871,981 194,961 37,739,491 835,703 38,575,194
- ---------------------------------------------------------------------------------------------------------------
Other receivables - - 399 - 399
- ---------------------------------------------------------------------------------------------------------------
Total assets 1,871,981 214,204 37,759,133 835,703 38,594,836
- ---------------------------------------------------------------------------------------------------------------
Interfund receivable/payable 167,100 - - - -
- ---------------------------------------------------------------------------------------------------------------
Net assets available for benefits $ 2,039,081 $ 214,204 $37,759,133 $ 835,703 $38,594,836
- ---------------------------------------------------------------------------------------------------------------
See accompanying summary of accounting policies and notes to financial statements.
</TABLE>
4
<PAGE>
SAMSONITE CORPORATION
EMPLOYEE SAVINGS TRUST
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
Investment Funds
------------------------------------------------------------------------
Fixed Equity Balanced Indexed
December 31, 1996 Income Fund Income Fund Fund Fund Total
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Assets:
Investments, at fair value (Note 2):
BT Pyramid Directed Account Cash Fund $11,266,550 $7,997,705 $3,257,020 $4,443,208 $26,964,483
Pimco Total Return Fund - - 1,645,408 - 1,645,408
Loans to participants - - - - -
- ------------------------------------------------------------------------------------------------------------------
Total investments 11,266,550 7,997,705 4,902,428 4,443,208 28,609,891
- ------------------------------------------------------------------------------------------------------------------
Receivables:
Employer contributions (66,073) 18,566 13,860 (33,280) (66,927)
Interest income 4,737 1,273 521 (2,238) 4,293
- ------------------------------------------------------------------------------------------------------------------
Total receivables (61,336) 19,839 14,381 (35,518) (62,634)
- ------------------------------------------------------------------------------------------------------------------
Liabilities -
Unallocated forfeitures 61,865 52,110 35,118 10,478 159,571
- ------------------------------------------------------------------------------------------------------------------
Transfer from American Tourister (Note 3) - - - - -
- ------------------------------------------------------------------------------------------------------------------
Interfund transfers 247,260 (220,948) (19,205) (7,107) -
- ------------------------------------------------------------------------------------------------------------------
Net assets available for benefits $11,390,609 $7,744,486 $4,862,486 $4,390,105 $28,387,686
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
Transfer
from
Participant American
December 31, 1996 Loans Tourister Total
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets:
Investments, at fair value (Note 2):
BT Pyramid Directed Account Cash Fund $ - $ - $ 26,964,483
Pimco Total Return Fund - - 1,645,408
Loans to participants 623,048 - 623,048
- ----------------------------------------------------------------------------------------------
Total investments 623,048 - 29,232,939
- ----------------------------------------------------------------------------------------------
Receivables:
Employer contributions - - (66,927)
Interest income - - 4,293
- ----------------------------------------------------------------------------------------------
Total receivables - - (62,634)
- ----------------------------------------------------------------------------------------------
Liabilities -
Unallocated forfeitures - - 159,571
- ----------------------------------------------------------------------------------------------
Transfer from American Tourister (Note 3) 154,294 6,817,042 6,971,336
- ----------------------------------------------------------------------------------------------
Interfund transfers - - -
- ----------------------------------------------------------------------------------------------
Net assets available for benefits $ 777,342 $ 6,817,042 $ 35,982,070
- ----------------------------------------------------------------------------------------------
See accompanying summary of accounting policies and notes to financial statements.
</TABLE>
5
<PAGE>
SAMSONITE CORPORATION
EMPLOYEE SAVINGS TRUST
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
Investment Funds
---------------------------------------------------------------------------------------------------
Fixed Equity Aggressive
Income Income Balanced Indexed Growth Growth
Year Ended December 31, 1997 Fund Fund Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Interest income $ 720,606 $ - $ - $ - $ - $ -
Net appreciation (depreciation)
of investments - 2,286,565 852,170 1,316,916 505,391 23,408
Earnings (losses) prior to transfer 1,794 1,272 (11,662) 707 - -
Employee contributions
(Note 1) 613,789 625,265 430,613 468,152 246,535 50,638
Employer contributions
(Note 1) 224,784 221,063 124,948 132,899 87,008 15,253
- ------------------------------------------------------------------------------------------------------------------------------------
Total additions 1,560,973 3,134,165 1,396,069 1,918,674 838,934 89,299
- ------------------------------------------------------------------------------------------------------------------------------------
Deductions:
Benefits and distributions 2,869,038 1,945,797 825,305 684,882 314,595 (10)
Forfeitures 28,774 45,794 24,064 5,413 11,990 33
Administrative expenses 1,394 718 1,309 309 258 -
- ------------------------------------------------------------------------------------------------------------------------------------
Total deductions 2,899,206 1,992,309 850,678 690,604 326,843 23
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (1,338,233) 1,141,856 545,391 1,228,070 512,091 89,276
- ------------------------------------------------------------------------------------------------------------------------------------
Transfer from American
Tourister (Note 3) 1,742,567 1,969,304 1,044,801 - 1,980,320 -
- ------------------------------------------------------------------------------------------------------------------------------------
Interfund transfers (587,033) (1,139,029) (899,062) 99,313 517,524 211,006
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets available for
benefits, beginning of year 11,390,609 7,744,486 4,862,486 4,390,105 - -
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets available for
benefits, end of year $11,207,910 $ 9,716,617 $ 5,553,616 $ 5,717,488 $ 3,009,935 $ 300,282
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------------------------- Transfer
from
International Samsonite Participant American
Year Ended December 31, 1997 Fund Stock Total Loans Tourister Total
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Interest income $ - $ - $ 720,606 $ - $ - $ 720,606
Net appreciation (depreciation)
of investments 187,161 (45,370) 5,126,241 - - 5,126,241
Earnings (losses) prior to transfer - - (7,889) - - (7,889)
Employee contributions
(Note 1) 212,043 179,195 2,826,230 - - 2,826,230
Employer contributions
(Note 1) 42,996 13,935 862,886 - - 862,886
- ------------------------------------------------------------------------------------------------------------------------------
Total additions 442,200 147,760 9,528,074 - - 9,528,074
- ------------------------------------------------------------------------------------------------------------------------------
Deductions:
Benefits and distributions 74,399 (5,516) 6,708,490 85,200 - 6,793,690
Forfeitures 550 23 116,641 - - 116,641
Administrative expenses 124 865 4,977 - - 4,977
- ------------------------------------------------------------------------------------------------------------------------------
Total deductions 75,073 (4,628) 6,830,108 85,200 - 6,915,308
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 367,127 152,388 2,697,966 (85,200) - 2,612,766
- ------------------------------------------------------------------------------------------------------------------------------
Transfer from American
Tourister (Note 3) 80,050 - 6,817,042 - (6,817,042) -
- ------------------------------------------------------------------------------------------------------------------------------
Interfund transfers 1,591,904 61,816 (143,561) 143,561 - -
- ------------------------------------------------------------------------------------------------------------------------------
Net assets available for
benefits, beginning of year - - 28,387,686 777,342 6,817,042 35,982,070
- ------------------------------------------------------------------------------------------------------------------------------
Net assets available for
benefits, end of year $ 2,039,081 $ 214,204 $ 37,759,133 $ 835,703 $ - $ 38,594,836
- ------------------------------------------------------------------------------------------------------------------------------
See accompanying summary of accounting policies and notes to financial statements.
</TABLE>
6
<PAGE>
SAMSONITE CORPORATION
EMPLOYEE SAVINGS TRUST
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
Investment Funds
-------------------------------------------------------------------------
Fixed Equity Balanced Indexed
Year Ended December 31, 1996 Income Fund Income Fund Fund Fund Total
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions:
Dividend income $ - $ - $ 287,542 $ 85,096 $ 372,638
Interest income 651,617 1,885 764 889 655,155
Net appreciation of investments - 122,521 305,974 671,080 1,099,575
Employee contributions (Note 1) 588,883 649,679 393,872 360,804 1,993,238
Employer contributions (Note 1) 196,807 234,774 119,489 123,878 674,948
- ------------------------------------------------------------------------------------------------------------------------------------
Total additions 1,437,307 1,008,859 1,107,641 1,241,747 4,795,554
- ------------------------------------------------------------------------------------------------------------------------------------
Deductions:
Benefits and distributions 1,423,412 608,767 349,097 169,164 2,550,440
Forfeitures 11,183 16,028 16,789 10,084 54,084
Administrative expenses 8,063 6,162 2,706 1,819 18,750
- ------------------------------------------------------------------------------------------------------------------------------------
Total deductions 1,442,658 630,957 368,592 181,067 2,623,274
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (5,351) 377,902 739,049 1,060,680 2,172,280
- ------------------------------------------------------------------------------------------------------------------------------------
Transfer from American Tourister (Note 3) - - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Interfund transfers 100,784 (1,415,589) 384,395 1,061,423 131,013
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets available for benefits,
beginning of year 11,295,176 8,782,173 3,739,042 2,268,002 26,084,393
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets available for benefits,
end of year $11,390,609 $ 7,744,486 $ 4,862,486 $ 4,390,105 $ 28,387,686
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Transfer
from
Participant American
Year Ended December 31, 1996 Loans Tourister Total
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
Additions:
Dividend income $ - $ - $ 372,638
Interest income - - 655,155
Net appreciation of investments - - 1,099,575
Employee contributions (Note 1) - - 1,993,238
Employer contributions (Note 1) - - 674,948
- -----------------------------------------------------------------------------------------
Total additions - - 4,795,554
- -----------------------------------------------------------------------------------------
Deductions:
Benefits and distributions - - 2,550,440
Forfeitures - - 54,084
Administrative expenses - - 18,750
- -----------------------------------------------------------------------------------------
Total deductions - - 2,623,274
- -----------------------------------------------------------------------------------------
Net increase (decrease) - - 2,172,280
- -----------------------------------------------------------------------------------------
Transfer from American Tourister (Note 3) 154,294 6,817,042 6,971,336
- -----------------------------------------------------------------------------------------
Interfund transfers (131,013) - -
- -----------------------------------------------------------------------------------------
Net assets available for benefits,
beginning of year 754,061 - 26,838,454
- -----------------------------------------------------------------------------------------
Net assets available for benefits,
end of year $ 777,342 $ 6,817,042 $ 35,982,070
- -----------------------------------------------------------------------------------------
See accompanying summary of accounting policies and notes to financial statements.
</TABLE>
7
<PAGE>
SAMSONITE CORPORATION
EMPLOYEE SAVINGS TRUST
SUMMARY OF ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
Basis of The accompanying financial statements have been
Accounting prepared on the accrual basis of accounting.
Valuation of Mutual funds are determined by quoted market
Investments prices, where available. Participant loans are
valued at cost, which approximates market value.
Purchases and sales of securities are recorded
as of the trade date.
Use of The preparation of financial statements in
Estimates 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 amount
of additions and deductions during the reporting
period. Actual results could differ from those
estimates.
Payment Distributions are recorded when paid.
of Distributions
8
<PAGE>
SAMSONITE CORPORATION
EMPLOYEE SAVINGS TRUST
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Description of The following description of the Samsonite
the Plan Corporation Employee Savings Trust (the "Plan")
provides only general information. Participants
should refer to the plan agreement for a more
complete description of the Plan's provisions.
General
The Plan is a defined contribution 401(k)
retirement plan covering substantially all
nonunion employees of Samsonite Corporation and
its subsidiaries (the "Company"). Samsonite
Company Stores, Inc. ("SCS"), formerly known as
A.T. Retail, Inc., an affiliate of Samsonite
Corporation, adopted the Samsonite Employee
Savings Trust ("SEST") effective August 28, 1996
for the benefit of only those former employees
of Samsonite Outlet Stores who became employees
of SCS as of August 28, 1996, but not for the
benefit of any other employees of SCS.
The CIGNA Retirement and Investment Services
("CIGNA") is the Trustee effective January 1,
1997. The Bankers Trust Company was the trustee
of the Plan during 1996. The Plan is subject to
the provisions of the Employee Retirement Income
Security Act of 1974 ("ERISA").
Eligibility
Full-time employees of the Company are eligible
to participate in the Plan as of the first day
of the month following their date of hire. Part-
time employees of the Company are eligible to
participate as of the first day of any month
following completion of one year of eligible
service.
Contributions
Plan participants may contribute to the Plan up
to 17% of their compensation, as defined. The
Company makes matching contributions of 50% of
the first 6% of participant contributions.
9
<PAGE>
SAMSONITE CORPORATION
EMPLOYEE SAVINGS TRUST
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
While an employee may contribute up to 17% of
his annual compensation, employee contributions
in excess of 6% will not receive the 50%
employer matching contribution. For the year
ended December 31, 1997, the first $9,500 of an
employee's contribution was contributed on a
before-tax basis; contributions in excess of
$9,500 were on an after-tax basis. The pre-tax
contribution limit is indexed annually for
inflation.
Participant Accounts
Each participant's account is credited with the
participant's contribution, the Company's
matching contribution and an allocation of Plan
earnings, and charged with an allocation of
administrative expenses. Allocations of Plan
earnings are based on participant account
balances. The benefit to which a participant is
entitled is the benefit that can be provided
from the participant's account.
Effective December 31, 1996, the plan
administrator transferred the Monetta Fund,
Inc., Windsor II Portfolio Fund, the T. Rowe
Price International Stock Fund, the Fidelity
Investments Blue Chip Growth Fund and the
Vanguard Index Trust 500 Portfolio into the BT
Pyramid Directed Account Cash Fund in
preparation of transferring the plan assets to
CIGNA Retirement and Investment Services
("CIGNA"), the new trustee of the Plan,
effective January 1, 1997.
Effective January 1, 1997, participants may
direct contributions, in multiples of 1%
increments, to the following investment options
provided by CIGNA:
(1) Fixed Income Fund - This fund consists of
-----------------
the CIGNA Guaranteed Income Fund, a fund that
seeks to preserve capital plus attractive fixed
income returns. This fund has replaced the BT
Pyramid Directed Account Cash Fund.
(2) Equity Income Fund - This fund consists of
------------------
the Fidelity Equity Income II Fund, a fund that
seeks a combination of capital growth and
10
<PAGE>
SAMSONITE CORPORATION
EMPLOYEE SAVINGS TRUST
NOTES TO FIANACIAL STATEMENTS
- --------------------------------------------------------------------------------
current income. This fund has replaced the
Monetta Fund, Inc.
(3) Balanced Fund - This fund consists of the
-------------
CIGNA Lifetime Funds. This group of funds is
based on the life-cycle theory of investing that
different bond/stock mixes are appropriate for
individuals at different stages of their lives.
These funds seek a combination of growth, income
and capital preservation through stocks, bonds,
and short-term investments. The funds consist of
the CIGNA Lifetime20, CIGNA Lifetime30, CIGNA
Lifetime40, CIGNA Lifetime50 and CIGNA
Lifetime60. These funds have replaced the Pimco
Total Return Fund, the Windsor II Portfolio
Fund, the T. Rowe Price International Stock Fund
and the Fidelity Investments Blue Chip Growth
Fund.
(4) Indexed Fund - This fund consists of the
------------
CIGNA Stock Market Index Account. This fund
invests in common stocks that seek to match the
performance of the Standard & Poor's 500
Composite Stock Price Index which provides
investors with long-term growth of capital and
income. This fund has replaced the Vanguard
Index 500.
(5) Growth Funds - The growth funds consist of
------------
the Fidelity Contra Fund and the Founders Growth
Fund. Both of these funds seek long-term capital
appreciation from equities with little or no
need for current income.
(6) Aggressive Growth Fund - This fund consists
----------------------
of the PBHG Growth Fund, a fund that seeks
potentially rapid growth of capital associated
with investing in small capitalization companies
with strong balance sheets.
(7) International Fund - This fund consists of
------------------
the Janus Worldwide Fund, a fund that seeks
potentially increased returns from participation
in foreign and domestic stock markets as well as
diversification benefits.
(8) Samsonite Stock - Funds are invested in
---------------
shares of the Company's common stock. The fund
is comprised of the underlying company stock and
a short-term cash component to provide liquidity
for daily trading.
11
<PAGE>
SAMSONITE CORPORATION
EMPLOYEE SAVINGS TRUST
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Vesting
Participants' contributions to the Plan and
earnings thereon are 100% vested. Participants
become vested in the Company's matching
contributions and their earnings based on years
of service as follows:
Years of Service Vested Percentage
------------------------------------------------
Less than three 0%
At least three but less than five 50%
Five or more 100%
------------------------------------------------
Upon death, total disability, reaching normal
retirement age, or termination of the Plan a
participant's account becomes fully vested.
Forfeited employer contributions are used to
reduce the required future employer matching
contributions. In 1997, employer contributions
were reduced by $276,212 from forfeited
nonvested accounts.
Payment of Benefits
Upon termination of service due to death,
disability or retirement, or upon reaching age
59-1/2, a participant may elect to receive
either a lump-sum amount equal to the value of
the participant's vested interest in his or her
account, or annual installments over 10 or fewer
years.
Participant Loans
Participants may borrow from their contribution
fund account a maximum amount equal to the
lesser of $50,000 or 50% of their account
balance. Loan transactions are treated as
transfers between the investment funds and the
participant loans fund. Loan terms range from
one to five years or up to ten years for the
purchase of a primary residence. The loans are
secured by the balance in the participant's
account and bear interest at a rate similar to
local prevailing rates. Interest rates on
current loans range from 6% to 10%. Loan
repayments are made in equal installments
through payroll deductions. In the statements of
changes in net assets
12
<PAGE>
SAMSONITE CORPORATION
EMPLOYEE SAVINGS TRUST
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
available for benefits, interest earned on
participant loans is included with participant
contributions.
Administrative Expenses
Most administrative expenses of the Plan are
paid by the Plan. In addition, the Company,
subject to change, has provided certain services
and paid certain expenses of the Plan without
reimbursement.
Discontinuance of Contributions
Upon the discontinuance of contributions to the
Plan by the employer, all participants shall
have a nonforfeitable 100% vested interest in
their account.
Tax Status
The Plan has received a favorable determination
letter from the Internal Revenue Service dated
August 29, 1995 indicating that it is qualified
under Section 401(a) of the Internal Revenue
Code ("IRC"), and therefore the related trust is
exempt from federal income taxes under Section
501(a) of the IRC. 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 IRC.
Therefore, they believe that the Plan was
qualified and the related trust was tax-exempt
as of the financial statement date.
2. Investments The fair value of investments that individually
represent 5% or more of the Plan's net assets
are as follows:
<TABLE>
<CAPTION>
December 31, 1997 1996
-------------------------------------------------------------------------------
<S> <C> <C>
BT Pyramid Directed Account Cash Fund $ - $ 26,964,483
Guaranteed Income Fund 11,207,910 -
Lifetime 40 5,213,657 -
Fidelity Equity Income II Fund 9,716,371 -
Stock Market Index Fund 5,884,588 -
Fidelity Contra Fund 2,434,009 -
13
</TABLE>
<PAGE>
SAMSONITE CORPORATION
EMPLOYEE SAVINGS TRUST
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
3. Adoption of On December 31, 1996, the American Tourister
American Retirement Plan was merged into the Plan. The
Tourister 1996 receipt of the net assets has been
Retirement recognized in the accounts of the Plan as of
Plan December 31, 1997 at their balances as
previously carried in the accounts of the
American Tourister Retirement Plan. A summary of
the transferred net assets follows:
December 31, 1996
----------------------------------------------
Investments, at fair value $ 6,641,624
Participant loans 154,294
Contributions receivable 175,418
----------------------------------------------
$ 6,971,336
----------------------------------------------
14
<PAGE>
SAMSONITE CORPORATION
EMPLOYEE SAVINGS TRUST
SCHEDULE 1
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
EIN: 13-3346672
Plan Number 005
December 31, 1997
- -----------------------------------------------------------------------------------------------
(a) (b) (c) (d) (e)
* Number Current
Identity of issue of shares Cost value
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cash - $ 19,243 $ 19,243
Guaranteed Income Fund 421,327 11,207,910 11,207,910
Lifetime 60 2,801 40,408 40,727
Lifetime 50 16,126 236,837 255,364
Lifetime 40 323,048 4,515,586 5,213,657
Lifetime 30 2,040 31,850 33,960
Lifetime 20 583 9,409 9,755
Fidelity Equity Income II Fund 271,267 7,740,762 9,716,371
Stock Market Index Fund 115,657 4,754,230 5,884,588
Fidelity Contra Fund 39,277 2,009,096 2,434,009
Founders Growth Fund 26,425 585,150 575,926
PBHG Growth Fund 11,820 282,117 300,282
Janus Worldwide Fund 43,263 1,752,791 1,871,981
Samsonite Stock 6,165 248,251 194,961
Participant loans, 6%-10% - - 835,703
</TABLE>
See accompanying report of independent certified public accountants.
* There were no non-exempt party-in-interest transactions.
15
<PAGE>
SAMSONITE CORPORATION
EMPLOYEE SAVINGS TRUST
SCHEDULE 2
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
EIN: 13-3346672
Plan Number 005
Year Ended December 31, 1997
- ------------------------------------------------------------------------------------------------
Current value
of asset
Purchase Selling Cost of on transaction Net gain
Identity of party involved price price asset date or (loss)
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Lifetime 40 $ 6,399,499 $ - $ 6,339,499 $ 6,339,499 $ -
Lifetime 40 - 1,950,716 1,823,912 1,950,716 126,804
Stock Market Index 6,337,191 - 6,337,191 6,337,191 -
Stock Market Index - 1,769,571 1,582,962 1,769,571 186,609
Janus Worldwide 2,484,766 - 2,484,766 2,484,766 -
Janus Worldwide - 799,273 731,975 799,273 67,298
Fidelity Contra Fund 2,638,483 - 2,638,483 2,638,483 -
Fidelity Contra Fund - 685,623 629,387 685,623 56,236
Fidelity Equity Income II 10,534,337 - 10,534,337 10,534,337 -
Fidelity Equity Income II - 3,100,737 2,793,576 3,100,737 307,161
Guaranteed Income 14,864,260 - 14,864,260 14,864,260 -
Guaranteed Income - 4,376,962 4,376,962 4,376,962 -
See accompanying report of independent certified public accountants.
16
</TABLE>
<PAGE>
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Plan Administrator of Samsonite
Corporation Employee Savings Trust
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (No. 333-19281) of our report dated June 19, 1998,
relating to the financial statements and schedules of the Samsonite Corporation
Employee Savings Trust appearing in this Annual Report on Form 11-K for the year
ended December 31, 1997.
/s/BDO Seidman, LLP
Denver, Colorado
July 13, 1998
