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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
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[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For the fiscal year ended: December 31, 1998
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[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the transition period from to
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Commission file number 0-23214
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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
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Samsonite Corporation
Employee Savings Trust
Tucson Union
Financial Statements and Schedule
Year Ending December 31, 1998 and
For the Period from Inception
(March 1, 1997) to December 31, 1997
(Unaudited)
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Samsonite Corporation
Employee Savings Trust
Tucson Union
Contents
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<TABLE>
<CAPTION>
Financial Statements
<S> <C>
Statements of Net Assets Available for Benefits 3 - 4
Statements of Changes in Net Assets Available for Benefits 5
Summary of Accounting Policies 6
Notes to Financial Statements 8 - 10
Item 27a - Schedule of Assets Held for Investment
Purposes 12
Signature Page 13
</TABLE>
2
2
<PAGE>
<TABLE>
<CAPTION>
Samsonite Corporation
Employee Savings Trust
Tucson Union
Statement of Net Assets Available to Benefits
====================================================================================================================================
(Unaudited)
Fixed Equity
Income Income Balanced Growth Participant
December 31, 1998 Fund Fund Funds Funds Total Loans Total
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<S> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments, at fair value:
CIGNA Guaranteed Income Fund $ 4,235 $ - $ - $ - $ 4,235 $ - $ 4,235
CIGNA Lifetime 20 Fund - - 1,354 - 1,354 - 1,354
Fidelity Equity Income II Fund - 806 - - 806 - 806
Fidelity Contra Fund - - - 484 484 - 484
Founders Growth - - - 469 469 - 469
Loans to Participants - - - - - 678 678
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Total investments 4,235 806 1,354 953 7,348 678 8,026
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Net assets available for benefits $ 4,235 $ 806 $1,354 $ 953 $ 7,348 $ 678 $ 8,026
====================================================================================================================================
See accompanying summary of accounting policies and notes to financial statements.
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
Samsonite Corporation
Employee Savings Trust
Tucson Union
Statement of Net Assets Available for Benefits
===========================================================================================
(Unaudited)
Fixed Equity
Income Income Balanced
December 31, 1997 Fund Fund Funds Total
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<S> <C> <C> <C> <C>
Assets:
Investments, at fair value:
CIGNA Guaranteed Income Fund $ 4,528 $ - $ - $ 4,528
CIGNA Lifetime 40 Fund - - 155 155
CIGNA Lifetime 20 Fund - - 919 919
Fidelity Equity Income II Fund - 530 - 530
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Total investments 4,528 530 1,074 -
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Net assets available for benefits $ 4,528 $ 530 $1,074 $ 6,132
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See accompanying summary of accounting policies and notes to financial statements.
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
Samsonite Corporation
Employee Savings Trust
Tucson Union
Statement of Changes in Net Assets Available for Benefits
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(Unaudited)
Fixed Equity
Income Income Balanced Growth Participant
Year Ended December 31, 1998 Fund Fund Funds Funds Total Loans Total
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions:
Interest income $ 224 $ 8 $ 11 $ 17 $ 260 $ - $ 260
Net appreciation of investments 98 171 133 402 - 402
Employee contributions (Note 1) 2,681 497 746 538 4,462 - 4,462
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Total additions 2,905 603 928 688 5,124 - 5,124
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Deductions:
Benefits and distributions 2,565 460 155 - 3,180 - 3,180
Administrative expenses 30 - 20 - 50 - 50
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Total deductions 2,595 460 175 - 3,230 - 3,230
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Net increases (decrease) 310 143 753 688 1,894 1,894
Loan Granted 639 - 641 - 1,280 1,280 -
Loan Principal Paid 36 133 168 265 602 (602) -
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Net assets available for benefits,
beginning of period 4,528 530 1,074 - 6,132 - 6,132
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Net assets available for benefits,
end of period $ 4,235 $ 806 $ 1,354 $ 953 $7,348 $ 678 $ 8,026
====================================================================================================================================
See accompanying summary of accounting policies and notes to financial statements.
</TABLE>
5
<PAGE>
Samsonite Corporation
Employee Savings Trust
Tucson Union
Summary of Accounting Policies
================================================================================
(Unaudited)
Basis of The accompanying financial statements have been prepared
Presentation on the accrual basis of accounting.
Valuation of Mutual funds are determined by quoted market prices,
Investments 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 conformity
Estimates 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 Benefits are recorded when paid.
of Distributions
Reclassifications Certain reclassifications have been made to the 1997
financial statements in order for them to conform to the
1998 presentation. Such reclassifications have no impact
on the Plan's net assets or changes in net assets.
6
<PAGE>
Samsonite Corporation
Employee Savings Trust
Tucson Union
Notes to Financial Statements
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(Unaudited)
1. Description of The following description of the Samsonite Corporation
the Plan Employee Savings Trust Tucson Union (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 all employees of Samsonite Corporation and
its subsidiaries (the "Company") who are members of Local
Union No. 104. The CG Trust Company is the Trustee of the
Plan. CIGNA Retirement and Investment Services (CIGNA) is
the Administrator of the Plan. The Plan is subject to the
provisions of the Employee Retirement Income Security Act
of 1974 ("ERISA").
Eligibility
Eligible employees of the Company may participate in the
Plan as of the first day of the month following their
date of hire.
Contributions
Plan participants may contribute to the Plan up to 17% of
their compensation, as defined. The Company does not make
matching contributions.
Participant Accounts
Each active participant's account is credited with the
participant's contribution. Earnings are allocated to
individual's accounts based on each participant's
account balance.
7
<PAGE>
Samsonite Corporation
Employee Savings Trust
Tucson Union
Notes to Financial Statements
================================================================================
(Unaudited)
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
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Guaranteed Income Fund, a fund that seeks to
preserve capital plus fixed income returns.
(2) Equity Income Fund - This fund consists of the
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Fidelity Equity Income II Fund, a fund that seeks a
combination of capital growth and current income.
(3) Balanced Funds - The balanced fund consist of the
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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. These funds include the CIGNA Lifetime
20, CIGNA Lifetime 30, CIGNA Lifetime 40, CIGNA
Lifetime 50 and CIGNA Lifetime 60 funds.
(4) Indexed Fund - This fund consists of the CIGNA
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Stock Market Index Fund. This fund invests in common
stocks that seek to match the performance of the
Standard & Poor's 500 Composite Stock Price Index.
(5) Growth Fund - The growth fund consists of the
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Fidelity Contra Fund and the Founders Growth Fund,
the PBHG Growth Fund and the Small Company Stock
Growth Fund. These funds seek long-term capital
appreciation from equities. The PBHG Growth fund was
discontinued as an elective investment in 1998 and
replaced by the Small Company Stock Growth Fund.
(6) Global Fund - This fund consists of the Janus
Worldwide Fund, a fund that seeks capital growth and
diversification benefits from investments in foreign
and domestic stock markets.
8
<PAGE>
Samsonite Corporation
Employee Savings Trust
Tucson Union
Notes to Financial Statements
================================================================================
(Unaudited)
(7) Samsonite Stock - Funds are invested in shares of
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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.
Vesting
Participants' contributions to the Plan and earnings
thereon are 100% vested.
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.
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.
Plan Termination
Although it has not expressed any intent to do so, the
Company has the right to discontinue contributions at
any time and terminate the Plan, subject to the
provisions of ERISA. In the event the Plan is
terminated, the accounts of all participants would
become fully vested, and the assets would be distributed
among the participants in accordance with the terms set
forth in the Plan.
9
<PAGE>
Samsonite Corporation
Employee Savings Trust
Tucson Union
Notes to Financial Statements
================================================================================
(Unaudited)
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.
Tax Status
The Plan obtained the latest determination letter on
August 29, 1995, in which the Internal Revenue Service
stated that the Plan, as then designed, was in
compliance with the applicable requirements of the
Internal Revenue Code. The Plan has been amended since
receiving the determination letter. However, the Plan
administrator and the Plan's tax counsel believe that
the Plan is currently designed and being operated in
compliance with the applicable requirements of the
Internal Revenue Code. Therefore, no provisions for
income taxes has been included in the Plan's financial
statements.
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, 1998 1997
-------------------------------------------------------
<S> <C> <C>
CIGNA Guaranteed Income Fund $ 4,235 $ 4,528
CIGNA Lifetime 20 Fund 1,354 919
Fidelity Equity Income II Fund 806 530
Fidelity Contra Fund 484 -
Founders Growth 469 -
Loans to Participants 678 -
</TABLE>
10
<PAGE>
Supplemental Schedule
=========================
<PAGE>
<TABLE>
<CAPTION>
Samsonite Corporation
Employee Savings Trust
Tucson Union
Schedule 1
Item 27a - Schedule of Assets Held for Investment Purposes
===========================================================================================
(a) (b) (c) (d) (e)
* Number Current
Identity of issue of shares Cost value
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CIGNA Guaranteed Income Fund 150 $ 4,235 $ 4,235
CIGNA Lifetime 20 Fund 71 1,184 1,354
Fidelity Equity Income II Fund 18 708 806
Fidelity Contra Fund 6 410 484
Founders Growth 17 410 469
Loans to Participants 678 678
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$ 7,625 $ 8,026
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</TABLE>
* There were no non-exempt party-in-interest transactions.
12
<PAGE>
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 - Tucson Union
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Date: June 16, 1999 By: /s/ Richard H. Wiley
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Richard H. Wiley
Samsonite Corporation
Chief Financial Officer, Treasurer and
Secretary
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