<PAGE> 1
As filed with the Securities and Exchange Commission on August 6, 1999
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 [NO FEE REQUIRED]
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
FOR THE TRANSITION PERIOD FROM ________ TO ________
COMMISSION FILE NUMBER: 000-23962
BUDGET GROUP, INC.
SAVINGSPLUS PLAN
125 BASIN STREET
SUITE 210
DAYTONA BEACH, FLORIDA 32114
(Full Title and Address of Plan)
BUDGET GROUP, INC.
125 BASIN STREET
SUITE 210
DAYTONA BEACH, FLORIDA 32114
(Name of Issuer of Securities held Pursuant to Plan
and Address of its Principal Executive Office)
<PAGE> 2
REQUIRED INFORMATION
The following financial statements for the Budget Group, Inc. SavingsPlus Plan
are included herein:
1. An audited statement of net assets available for benefits as of the end
of each of the latest two fiscal years of the plan.
2. An audited statement of changes in net assets available for benefits
for the latest fiscal year of the plan.
<PAGE> 3
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit No. Description
- ----------- -----------
<S> <C>
23.1 Consent of Arthur Andersen LLP
</TABLE>
<PAGE> 4
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
Budget Group, Inc., as administrator of the Budget Group, Inc. SavingsPlus Plan
has caused this annual report to be signed on its behalf by the undersigned
thereunto duly authorized.
BUDGET GROUP, INC. SAVINGSPLUS PLAN
By: BUDGET GROUP, INC.
By: /s/ Thomas L. Kram
-----------------------------
Thomas L. Kram
Vice President and Controller
Date: August 5, 1999
<PAGE> 5
BUDGET GROUP, INC. SAVINGSPLUS PLAN
FINANCIAL STATEMENTS
AS OF DECEMBER 31, 1998 AND 1997,
TOGETHER WITH REPORT OF INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
<PAGE> 6
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To Budget Group, Inc.:
We have audited the accompanying statements of net assets available for benefits
of Budget Group, Inc. SavingsPlus Plan as of December 31, 1998 and 1997, and the
related statement of changes in net assets available for benefits for the year
ended December 31, 1998. These financial statements and the supplemental
schedules referred to below are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements and
supplemental schedules 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 net assets available for benefits of the Plan as of
December 31, 1998 and 1997, and the changes in its net assets available for
benefits for the year ended December 31, 1998, 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 supplemental schedules of assets held
for investment (Schedule I) and loans in default (Schedule III) as of December
31, 1998, and reportable transactions (Schedule II) for the year then ended are
presented for the purpose of additional analysis and are not a required part of
the basic financial statements but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. The Fund Information in the
statement of changes in net assets available for benefits is presented for
purposes of additional analysis rather than to present the changes in net assets
available for benefits of each fund. The supplemental schedules and Fund
Information 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.
Arthur Andersen LLP
Orlando, Florida,
July 9, 1999
<PAGE> 7
BUDGET GROUP, INC. SAVINGSPLUS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
ASSETS 1998 1997
------ ---- ----
<S> <C> <C>
INVESTMENTS (Note 2)
At fair value:
Vanguard U.S. Growth Portfolio $ -- $26,363,612
Washington Mutual Fund 29,673,025 --
Balanced Funds 1,054 10,357,631
Income Fund of America 19,993,724 --
Bond Funds 5,114,309 4,471,013
Money Market Funds 1,310,959 9,738,435
Franklin Money Market Fund 10,832,975 --
Employer Stock 1,932,296 533,680
Index Funds 178,272 5,728,680
Fidelity Growth Opportunities 3,000,623 --
Alliance Premier Growth Fund 12,534,447 --
International Funds 2,328,816 432,519
Kemper Technology Fund -- 936,572
Small Cap Funds 3,282,290 721,305
Kemper Income and Capital Preservation Fund -- 101,605
Loan Fund 5,566,746 4,508,170
Retirement Fund
BNY Hamilton Equity Income Fund -- 7,164,658
BNY Hamilton Intermediate Government Fund -- 5,874,545
Neuberger & Berman Genesis Trust Fund 1,809,930 --
Fixed Account Funds 984,749 --
Legacy Fund 371,332 --
Crossroads Fund 759,365 --
Growth & Income Fund 1,986,831 --
Ascent Fund 853,210 --
AIM Ltd. Mat. Fund 5,510 --
U.S. Stock Account Fund 548,451 --
Medium Co. Value Account Fund 13,316 --
Medium Co. Blend Account Fund 23,831 --
Small Co. Blend Account Fund 27,528 --
Other Investment Account Fund 18,015 --
Collective Short-Term Investment Fund 262,814 131,977
------------ -----------
Total Investments 103,414,418 77,064,402
DUE FROM BROKER -- 2,029
PARTICIPANTS CONTRIBUTIONS RECEIVABLE 799,841 395,122
CONTRIBUTIONS RECEIVABLE FROM BUDGET 401K
AND PROFIT SHARING PLAN 222,242 --
EMPLOYER CONTRIBUTION RECEIVABLE 218,349 3,558,188
INTEREST RECEIVABLE 37,671 27,301
------------ -----------
Total Assets 104,692,521 81,047,042
------------ -----------
LIABILITIES
-----------
ACCRUED EXPENSES 1,050 1,800
------------ -----------
NET ASSETS AVAILABLE FOR BENEFITS $104,691,471 $81,045,242
============ ===========
</TABLE>
The accompanying notes are an integral part of these statements.
<PAGE> 8
BUDGET GROUP, INC. SAVINGSPLUS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS,
WITH FUND INFORMATION, FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION> Participant directed
-----------------------------------------------------------------
Vanguard Washington Income
U.S. Growth Mutual Balanced Fund of
Description Portfolio Fund Funds America
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
Investment income:
Net realized and unrealized
appreciation (depreciation) in
fair value of investments $1,407,623 $ 3,871,234 $ 169,970 $ 741,694
Dividends and interest -- 504,502 -- 1,001,647
Contributions:
Participants 151,306 1,931,147 68,578 769,314
Employer (net of utilized forfeitures) -- 848,554 -- (350,242)
Rollovers 10,347 24,924 -- 6,230
Transfer from merged plans -- 328,945 1,054 11,102
----------------------------------------------------------------
Total additions 1,569,276 7,509,306 239,602 2,179,745
----------------------------------------------------------------
TRANSFERS (FROM) TO OTHER INVESTMENT OPTIONS,
including participant loan transactions (27,615,866) 24,982,221 (10,360,451) 19,906,226
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
Benefits paid to participants (316,399) (2,813,097) (235,514) (2,090,087)
Administrative and investment expenses (Note 3) (623) (5,405) (214) (2,160)
----------------------------------------------------------------
Total deductions (317,022) (2,818,502) (235,728) (2,092,247)
----------------------------------------------------------------
NET INCREASE (DECREASE) (26,363,612) 29,673,025 (10,356,577) 19,993,724
NET ASSETS AVAILABLE FOR BENEFITS,
beginning of year 26,363,612 -- 10,357,631 --
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS,
end of year $ -- $29,673,025 $ 1,054 $19,993,724
===============================================================================================================================
<CAPTION>
Participant directed
-------------------------------------------------------------------------
Franklin
Bond Money Market Money Market
Description Funds Funds Funds Employer Stock
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
Investment income:
Net realized and unrealized
appreciation (depreciation)
in fair value
of investments $ (98,828) $ -- $ -- $ (755,197)
Dividends and interest 325,704 56,319 440,992 1,887
Contributions:
Participants 535,841 68,009 816,774 205,783
Employer (net of utilized forfeitures) 246,945 -- 427,582 1,298,370
Rollovers 5,371 -- 15,948 28,269
Transfer from merged plans 166,639 1,309,689 109,090 24,472
-----------------------------------------------------------------------
Total additions 1,181,672 1,434,017 1,810,386 803,584
-----------------------------------------------------------------------
TRANSFERS (FROM) TO OTHER INVESTMENT OPTIONS,
including participant loan transactions (58,588) (9,752,022) 10,362,461 659,053
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
Benefits paid to participants (478,066) (109,026) (1,336,452) (63,896)
Administrative and investment expenses
(Note 3) (1,722) (445) (3,420) (125)
----------------------------------------------------------------------
Total deductions (479,788) (109,471) (1,339,872) (64,021)
----------------------------------------------------------------------
NET INCREASE (DECREASE) 643,296 (8,427,476) 10,832,975 1,398,616
NET ASSETS AVAILABLE FOR BENEFITS,
beginning of year 4,471,013 9,738,435 -- 533,680
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS,
end of year $5,114,309 $1,310,959 $10,832,975 $1,932,296
===========================================================================================================================
</TABLE>
<PAGE> 9
BUDGET GROUP, INC. SAVINGSPLUS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS,
WITH FUND INFORMATION, FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION> Participant directed
----------------------------------------------------------------------------
Alliance
Fidelity Premier Kemper
Index Growth Growth International Technology
Description Funds Opportunities Fund Funds Fund
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
Investment income:
Net realized and unrealized
appreciation (depreciation)
in fair value of investments $ 185,755 $ -- $ 3,080,847 $ (154,688) $ 61,834
Dividends and interest -- -- 4,022 46,421 --
Contributions:
Participants 42,291 -- 914,793 222,223 10,832
Employer (net of utilized forfeitures) -- -- 317,101 62,801 --
Rollovers -- -- 36,824 3,226 --
Transfer from merged plans 178,272 3,000,623 31,324 1,071,186 --
------------------------------------------------------------------------------
Total additions 406,318 3,000,623 4,384,911 1,251,169 72,666
------------------------------------------------------------------------------
TRANSFERS (FROM) TO OTHER INVESTMENT OPTIONS,
including participant loan transactions (5,905,282) -- 8,861,650 707,161 (1,006,756)
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
Benefits paid to participants (51,158) -- (710,105) (61,735) (2,397)
Administrative and investment expenses (Note 3) (286) -- (2,009) (298) (85)
-------------------------------------------------------------------------------
Total deductions (51,444) -- (712,114) (62,033) (2,482)
-------------------------------------------------------------------------------
NET INCREASE (DECREASE) (5,550,408) 3,000,623 12,534,447 1,896,297 (936,572)
NET ASSETS AVAILABLE FOR BENEFITS,
beginning of year 5,728,680 -- -- 432,519 936,572
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS,
end of year $ 178,272 $3,000,623 $12,534,447 $2,328,816 $ --
===================================================================================================================================
<CAPTION>
Participant directed
------------------------------------
Kemper Income and
Small Cap Capital Preservation Loan Retirement
Description Funds Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
Investment income:
Net realized and unrealized
appreciation (depreciation)
in fair value of investments $ (109,446) $ 172 $ -- $ 79,594
Dividends and interest 21,944 652 346,735 35,084
Contributions:
Participants 486,372 1,441 -- --
Employer (net of utilized forfeitures) 137,665 -- -- --
Rollovers 17,513 -- -- --
Transfer from merged plans 212,456 -- 742,549 --
----------------------------------------------------------------
Total additions 766,504 2,265 $1,089,284 114,678
----------------------------------------------------------------
TRANSFERS (FROM) TO OTHER INVESTMENT OPTIONS,
including participant loan transactions 2,015,206 (103,819) 360,591 (13,048,984)
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
Benefits paid to participants (220,108) (51) (391,299) (104,897)
Administrative and investment expenses (Note 3) (617) -- -- --
----------------------------------------------------------------
Total deductions (220,725) (51) (391,299) (104,897)
----------------------------------------------------------------
NET INCREASE (DECREASE) 2,560,985 (101,605) 1,058,576 (13,039,203)
NET ASSETS AVAILABLE FOR BENEFITS,
beginning of year 721,305 101,605 4,508,170 13,039,203
- ---------------------------------------------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS,
end of year $3,282,290 $ -- $5,566,746 $ --
=====================================================================================================================
</TABLE>
<PAGE> 10
BUDGET GROUP, INC. SAVINGSPLUS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS,
WITH FUND INFORMATION, FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
Participant directed
----------------------------------------------------------------------------
Neuberger &
Berman Genesis Fixed Account Legacy Crossroads Growth & Income
Description Trust Fund Funds Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
Investment income:
Net realized and unrealized
appreciation (depreciation) in fair value
of investments $ -- $ -- $ -- $ -- $ --
Dividends and interest -- -- -- -- --
Contributions:
Participants -- -- -- -- --
Employer (net of utilized forfeitures) -- -- -- -- --
Rollovers -- -- -- -- --
Transfer from merged plans 1,809,930 984,749 371,332 759,365 1,986,831
---------------------------------------------------------------------------
Total additions 1,809,930 984,749 371,332 759,365 1,986,831
---------------------------------------------------------------------------
TRANSFERS (FROM) TO OTHER INVESTMENT OPTIONS,
including participant loan transactions -- -- -- -- --
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
Benefits paid to participants -- -- -- -- --
Administrative and investment expenses (Note 3) -- -- -- -- --
---------------------------------------------------------------------------
Total deductions -- -- -- -- --
---------------------------------------------------------------------------
NET INCREASE (DECREASE) 1,809,930 984,749 371,332 759,365 1,986,831
NET ASSETS AVAILABLE FOR BENEFITS,
beginning of year -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS,
end of year $1,809,930 $ 984,749 $371,332 $759,365 $1,986,831
===================================================================================================================================
<CAPTION>
Participant directed
----------------------------------------------------------------------------
AIM U.S. Medium Co.
Ascent Ltd. Mat. Stock Account Value Account
Description Fund Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
Investment income:
Net realized and unrealized
appreciation (depreciation) in fair value
of investments $ -- $ -- $ -- $ --
Dividends and interest -- 38 -- --
Contributions:
Participants -- -- -- --
Employer (net of utilized forfeitures) -- -- -- --
Rollovers -- -- -- --
Transfer from merged plans 853,210 5,472 548,451 13,316
----------------------------------------------------------------------------
Total additions 853,210 5,510 548,451 13,316
----------------------------------------------------------------------------
TRANSFERS (FROM) TO OTHER INVESTMENT OPTIONS,
including participant loan transactions -- -- -- --
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
Benefits paid to participants -- -- -- --
Administrative and investment expenses (Note 3) -- -- -- --
----------------------------------------------------------------------------
Total deductions -- -- -- --
----------------------------------------------------------------------------
NET INCREASE (DECREASE) 853,210 5,510 548,451 13,316
NET ASSETS AVAILABLE FOR BENEFITS,
beginning of year -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS,
end of year $853,210 $ 5,510 $ 548,451 $ 13,316
===================================================================================================================================
</TABLE>
<PAGE> 11
BUDGET GROUP, INC. SAVINGSPLUS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS,
WITH FUND INFORMATION, FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
Participant directed
-----------------------------------------------------
Medium Co. Small Co. Other
Blend Account Blend Account Investment Account
Description Fund Fund Fund Other
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
Investment income:
Net realized and unrealized
appreciation (depreciation) in
fair value of investments $ -- $ -- $ -- $ --
Dividends and interest -- -- -- 27,815
Contributions:
Participants -- -- -- 722,704
Employer (net of utilized forfeitures) -- -- -- (3,321,418)
Rollovers -- -- -- --
Transfer from merged plans 23,831 27,528 18,015 --
-------------------------------------------------------------------
Total additions 23,831 27,528 18,015 (2,570,899)
-------------------------------------------------------------------
TRANSFERS (FROM) TO OTHER INVESTMENT OPTIONS,
including participant loan transactions -- -- -- (2,801)
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
Benefits paid to participants -- -- -- --
Administrative and investment expenses (Note 3) -- -- -- 750
-------------------------------------------------------------------
Total deductions -- -- -- 750
-------------------------------------------------------------------
NET INCREASE (DECREASE) 23,831 27,528 18,015 (2,572,950)
NET ASSETS AVAILABLE FOR BENEFITS,
beginning of year -- -- -- 4,112,817
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS,
end of year $23,831 $27,528 $18,015 $1,539,867
===========================================================================================================================
<CAPTION>
Description Total
- ------------------------------------------------------------------------
<S> <C>
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
Investment income:
Net realized and unrealized
appreciation (depreciation) in
fair value of investments $ 8,480,564
Dividends and interest 2,813,762
Contributions:
Participants 6,947,408
Employer (net of utilized forfeitures) (332,642)
Rollovers 148,652
Transfer from merged plans 14,589,431
------------
Total additions 32,647,175
------------
TRANSFERS (FROM) TO OTHER INVESTMENT OPTIONS,
including participant loan transactions --
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
Benefits paid to participants (8,984,287)
Administrative and investment expenses (Note 3) (16,659)
-----------
Total deductions (9,000,946)
-----------
NET INCREASE (DECREASE) 23,646,229
NET ASSETS AVAILABLE FOR BENEFITS,
beginning of year 81,045,242
- ------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS,
end of year $104,691,471
========================================================================
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE> 12
BUDGET GROUP, INC. SAVINGSPLUS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
1. PLAN DESCRIPTION:
The following description of the Budget Group, Inc. SavingsPlus Plan (the Plan)
provides only general information. Participants should refer to the summary plan
description for a more complete description of the Plan's provisions.
General
The Plan is a tax deferred savings plan under Section 401(k) of the Internal
Revenue Code (IRC). Substantially all non-union employees of Budget Group, Inc.
(the Employer or Budget) who have completed at least 1,000 hours of service are
eligible. The Plan is subject to the provisions of the Employee Retirement
Income Security Act of 1974 (ERISA).
Effective January 30, 1998, Team Rental Group, Inc. employees were allowed to
enter the Plan.
During the fourth quarter 1998, the following plans were effectively merged
into the Plan: the Arizona Rent-A-Car Systems, Inc. Employees' 401(k) and
Profit Sharing Plan, the Budget Rent-A-Car of St. Louis 401(k) Plan, the
Cruise America, Inc. 401(k) Plan, and the Ryder TRS, Inc. 401(k) Retirement
Savings Plan (the Merged Plans). The participants in these Merged Plans became
eligible to participate in the Plan in the fourth quarter 1998 and first
quarter 1999.
Contributions and Plan Options
Participants may contribute up to a maximum of 15 percent of their base pay on a
pretax basis and up to 10 percent of their after-tax pay. Contributions are also
limited by certain statutory requirements.
Budget matches 50 percent on the first 2 percent of the employee's compensation
contributed and 25 percent on the next 2 percent of the employee's compensation
contributed. The nondiscretionary match is allocated to the Employer Stock.
Additional amounts may be contributed at the option of the Company's Board of
Directors. The discretionary contribution for 1998 and 1997 was $0 and
$3,251,000, respectively. The Plan allows employees to self direct the
discretionary contribution. The Plan allocates the discretionary contribution
based on employee's compensation under the permitted disparity limit in
accordance with the IRC section 401(l).
Due to an administrative error a portion of the participant contributions of the
Plan were remitted to the Budget 401K and Profit Sharing Plan (Budget 401K Plan)
during the year ended December 31, 1998, and have been recorded as a receivable
from the Budget 401K Plan in the Statements of Net Assets Available for Benefits
as of December 31, 1998. On September 30, 1999, Budget plans to complete a
merger of the Budget 401K Plan into the Plan upon which this error would be
corrected.
<PAGE> 13
In 1997, participants were able to choose among the following investment
options: Vanguard U.S. Growth Portfolio, Brinson Partners U.S. Balanced Fund,
Vanguard Bond Index Fund, Fidelity Money Market Fund, Employer Stock, Dreyfus
S&P 500 Index Fund, Kemper International Fund, Kemper Technology Fund,
Kemper-Dreman Small Cap Value Fund, Kemper Income and Capital Preservation Fund
and the Retirement Fund. At December 31, 1998, the investment fund options
available to Plan participants include Franklin Money Market Fund, Bond Fund of
America, Income Fund of America, Washington Mutual Fund, Alliance Premier Growth
Fund, Franklin Small Cap Growth Fund, Templeton Foreign Fund and Employer Stock.
The additional investment fund options disclosed on the accompanying Statements
of Net Assets Available for Benefits and Statement of Changes in Net Assets
Available for Benefits represent former investment fund options of the Ryder
Plan, the Arizona Plan and the St. Louis Plan, which were frozen and merged into
the Plan during the year ended December 31, 1998.
Individual investment options with less than 5 percent of the Plan's total net
assets have been combined with investment options having similar investment
objectives. The Bond Funds include the following funds: Bond Fund of America and
the Bond & Mortgage Account Fund. The Money Market Funds include the following
funds: Series Money Market Fund, AIM Cash Reserves Fund and Money Market Account
Fund. The International Funds include the following funds: Templeton Foreign
Fund and the International Stock Account Fund. The Fixed Account Funds include
the following funds: Fixed Account Fund and the Guaranteed Interest Account
Fund.
Vesting
Participants are immediately vested in their voluntary contributions plus actual
earnings and losses thereon. Vesting in Budget's matching contributions and
earnings and losses thereon occurs over a period of five years of service at the
rate of 40 percent after two full years and 20 percent for each year thereafter.
-2-
<PAGE> 14
Vesting in the employer discretionary contributions plus earnings and losses
thereon occurs upon completion of five 1,000-hour calendar years of service with
the Employer. All calendar years of service will be considered in calculating
vesting, provided participants worked at least 1,000 hours in those years.
Forfeited balances of terminated participants' nonvested accounts are used to
reduce future Employer contributions or to pay plan expenses. Such forfeitures
utilized totaled $1,623,251 for the year ended December 31, 1998 and were netted
against Employer contributions on the Statement of Changes in Net Assets
Available for Benefits. Forfeited nonvested accounts totaled $69,105 and
$1,245,006 at December 31, 1998 and 1997, respectively, and were held within the
Income Fund of America.
Benefit Payments
On termination of service due to death, disability, retirement or termination,
a participant shall receive a lump-sum amount equal to the value of the
participant's vested account balance, as defined in the Plan.
Participant Loans
Participants may borrow from their vested accounts a minimum of $1,000, up to a
maximum equal to the lesser of $50,000 or 50 percent of their vested account
balance. Loans shall bear interest at a rate that is commensurate with the
interest rates charged by persons in the business of lending money for loans
which would be made under similar circumstances. A loan is repayable over a
period not extending beyond five years, unless such loan is used to acquire a
principal residence of the participant. Interest rates range from 6.0 percent to
11.5 percent for loans outstanding at December 31, 1998.
Plan Termination
Although it has not expressed any intent to do so, the Employer has the right
under the Plan to terminate the Plan at any time. In the event of plan
termination, participants will become 100 percent vested in their accounts.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Basis of Presentation
The financial statements of the Plan are prepared under the accrual method of
accounting.
Investments
The Plan holds investments in registered investment companies and in pooled
separate accounts. Plan investments in registered investment companies are
carried at fair market value as determined by quoted market prices. Plan
investments in the pooled separate accounts are reported at fair market value as
determined by Aetna. Purchases and sales of securities are recorded on a
trade-date basis. Dividends are recorded on the ex-dividend date. The fair value
of the Budget Group, Inc. stock at December 31, 1998 and 1997 was $1,922,002 and
$533,680, respectively.
The majority of the Fixed Account Fund was invested in a common collective trust
fund, which invested in U.S. Government Securities, bonds, real estate and money
market accounts. The investments in the fund in the accompanying financial
statements were carried at fair value. The crediting interest rate on the fund
was guaranteed and was 5.6 percent at December 31, 1998.
Benefits Paid
Benefits are recorded when paid.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of additions to and deductions from the net assets
available for benefits during the reporting period. Actual results could differ
from those estimates.
Reclassifications
Certain amounts in the 1997 Statement of Net Assets Available for Benefits have
been reclassified to conform with the current year presentation.
3. ADMINISTRATIVE EXPENSES:
Substantially all administrative and investment expenses are paid by the Plan,
except for the participant Loan Fund in which investment expenses are paid by
the participants.
-3-
<PAGE> 15
4. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500:
The following is a reconciliation of net assets available for plan benefits per
the financial statements to the Form 5500:
<TABLE>
<CAPTION>
1998 1997
----------- ----------
<S> <C> <C>
Net assets available for plan benefits per the
financial statements $104,691,471 $81,045,242
Benefits payable (424,866) (54,004)
------------ -----------
Net assets available for plan
benefits per the Form 5500 $104,266,605 $80,991,238
============ ===========
</TABLE>
The following is a reconciliation of benefits paid to participants for the year
ended December 31, 1998, per the financial statements to the Form 5500:
<TABLE>
<CAPTION>
Amount
------
<S> <C>
Benefits paid to participants for financial reporting purposes $ 8,984,287
Add: Benefits payable at December 31, 1998 424,866
Less: Benefits payable at December 31, 1997 (54,004)
-----------
Benefits paid to participants per the Form 5500 $ 9,355,149
===========
</TABLE>
Amounts allocated to withdrawing participants are recorded on the Form 5500 for
benefit claims that have been processed and approved for payment prior to
December 31, but not yet paid as of that date.
5. INCOME TAX STATUS:
The Internal Revenue Service has determined and informed the Company by a letter
dated on September 3, 1996, that the Plan and related trust are designed in
accordance with applicable sections of the Internal Revenue Code (IRC). The Plan
has been amended since receiving the determination letter. However, the Plan's
administrator and the Plan's management believe that the Plan is designed and
is currently being operated in compliance with the applicable requirements of
the IRC.
6. RELATED PARTY TRANSACTIONS:
The BNY Hamilton Equity Income Fund, BNY Hamilton Intermediate Government Fund
and Collective Short-Term Investment Fund are managed by the trustee, Bank of
New York Company, Inc., a party-in-interest.
7. SUPPLEMENTAL SCHEDULES:
The accompanying schedules of assets held for investment, reportable
transactions and loans in default are included as required schedules under
ERISA.
-4-
<PAGE> 16
SCHEDULE I
BUDGET GROUP, INC. SAVINGSPLUS PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT
AS OF DECEMBER 31, 1998
<TABLE>
<CAPTION>
Identity of Issue, Borrower, Lessor or
Similar Party Description of Investment Cost Fair Value
- --------------------------------------- --------------------------------------- ---------- ----------
<S> <C> <C> <C>
The American Funds Group Washington Mutual Fund $28,277,067 $ 29,673,025
The American Funds Group Income Fund of America 20,609,708 19,993,724
The American Funds Group Bond Fund of America 5,133,581 5,006,347
Franklin Templeton Franklin Money Market Fund 10,832,975 10,832,975
Alliance Group Alliance Premier Growth Fund 9,826,648 12,534,447
Franklin Templeton Templeton Foreign Fund 2,680,178 2,302,681
Franklin Templeton Franklin Small Cap Growth Fund 3,354,726 3,282,290
Bank of New York Company, Inc. Collective Short-Term Investment Fund* 262,814 262,814
Aetna Life Insurance and Annuity Company Fidelity Growth Opportunities 2,653,584 3,000,623
Aetna Life Insurance and Annuity Company Neuberger & Berman Genesis Trust Fund 2,013,435 1,809,930
Aetna Life Insurance and Annuity Company Fixed Account Fund 819,217 823,505
Aetna Life Insurance and Annuity Company Series Money Market Fund 1,061,978 1,092,392
Aetna Life Insurance and Annuity Company Legacy Fund 367,559 371,332
Aetna Life Insurance and Annuity Company Crossroads Fund 781,971 759,365
Aetna Life Insurance and Annuity Company Series Growth & Income Fund 1,914,060 1,986,831
Aetna Life Insurance and Annuity Company Ascent Fund 883,538 853,210
AIM Management Group AIM Ltd. Mat. Fund 5,449 5,510
AIM Management Group AIM Cash Reserves Fund 153,760 153,760
The Principal Financial Group Guaranteed Interest Account Fund 161,244 161,244
The Principal Financial Group Money Market Account Fund 64,807 64,807
The Principal Financial Group Bond & Mortgage Account Fund 77,021 107,962
The Principal Financial Group Stock Emphasis Balanced Account Fund 682 1,054
The Principal Financial Group Stock Index 500 Account Fund 134,897 178,272
The Principal Financial Group U.S. Stock Account Fund 259,353 548,451
The Principal Financial Group Medium Co. Value Account Fund 12,375 13,316
The Principal Financial Group Medium Co. Blend Account Fund 21,148 23,831
The Principal Financial Group Small Co. Blend Account Fund 29,937 27,528
The Principal Financial Group International Stock Account Fund 20,871 26,135
The Principal Financial Group Other Investment Account Fund 25,789 18,015
------------
Total mutual and money market funds 95,915,376
------------
Budget Group, Inc. Employer Stock* 2,549,108 1,932,296
Participant Loan Fund Interest rates ranging from 6.0
percent to 11.5 percent, maximum
of five years to maturity, except
for loans used to acquire the
principal residence of the
participant* 5,566,746 5,566,746
------------
Total assets held for investment $103,414,418
============
</TABLE>
*Represents a party-in-interest (Note 6).
The preceding notes are an integral part of this schedule.
-5-
<PAGE> 17
SCHEDULE II
BUDGET GROUP, INC. SAVINGSPLUS PLAN
SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
Transactions or series of transactions in excess of
5 percent of the fair value of plan assets at the Sales Realized
beginning of the year Purchases Cost Proceeds gains/(losses)
- ----------------------------------------------------- --------- ------- -------- --------------
<S> <C> <C> <C> <C>
Purchases:
Washington Mutual Fund $33,675,280
Vanguard U.S. Growth Portfolio 197,092
Income Fund of America 26,628,434
Brinson Partners U.S. Balanced Fund 191,955
Bond Fund of America 7,039,404
Vanguard Bond Index Fund 198,972
Franklin Money Market Fund 14,452,141
Fidelity Money Market Fund 623,392
Alliance Premier Growth Fund 11,317,085
Dreyfus S&P 500 Index Fund 188,070
Franklin Small Cap Growth Fund 4,157,089
BNY Hamilton Equity Income Fund* 8,103
BNY Hamilton Intermediate Government Fund* 29,430
Collective Short-Term Investment Fund* 22,746,121
Sales:
Washington Mutual Fund $ 5,695,579 $ 8,124,266 $2,428,687
Vanguard U.S. Growth Portfolio 18,749,823 27,968,327 9,218,504
Income Fund of America 6,018,726 7,376,404 1,357,678
Brinson Partners U.S. Balanced Fund 9,821,766 10,719,557 897,791
Bond Fund of America 1,959,995 1,961,949 1,954
Vanguard Bond Index Fund 4,543,944 4,695,710 151,766
Franklin Money Market Fund 3,619,166 3,619,166 -
Fidelity Money Market Fund 10,361,827 10,361,827 -
Alliance Premier Growth Fund 1,492,876 1,865,715 372,839
Dreyfus S&P 500 Index Fund 4,706,750 6,102,504 1,395,754
Franklin Small Cap Growth Fund 1,015,224 935,618 (79,606)
BNY Hamilton Equity Income Fund* 6,659,021 7,222,682 563,661
BNY Hamilton Intermediate Government Fund* 5,734,992 5,933,648 198,656
Collective Short-Term Investment Fund* 22,429,017 22,429,017 -
</TABLE>
*Represents a party-in-interest (Note 6).
The preceding notes are an integral part of this schedule.
-6-
<PAGE> 18
SCHEDULE III
BUDGET GROUP, INC. SAVINGSPLUS PLAN
SCHEDULE OF LOANS IN DEFAULT
AS OF DECEMBER 31, 1998
<TABLE>
<CAPTION>
Original Amount
Identity Amount Received During
of Obligor Of Loans Year(a) Detailed Description of Loan Amount Overdue(a)
- ---------- --------- ----------------- ---------------------------- -----------------
<S> <C> <C> <C> <C>
Various plan $ 872,595 $ 220,149 Issued from February 28, 1993 $ 467,997
participants* through November 20, 1998;
interest rates ranging from
6.0% to 10.5%
</TABLE>
(a) Amount includes principal and interest
* Represents a party-in-interest (Note 6)
The preceding notes are an integral part of this schedule.
-7-
<PAGE> 1
EXHIBIT 23.1
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
As independent certified public accountants, we hereby consent to the
incorporation of our report, dated July 9, 1999, included in this Form 11-K
into Budget Group, Inc.'s previously filed Registration Statement File Nos.
333-59049 and 333-82749.
Arthur Andersen LLP
Orlando, Florida,
July 30, 1999
