================================================================================
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 September 29, 1998
------------------
OR
[ ] 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 33-32465
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BERGEN BRUNSWIG PRE-TAX INVESTMENT RETIREMENT ACCOUNT
- --------------------------------------------------------------------------------
(Full title of the plan)
BERGEN BRUNSWIG CORPORATION
- --------------------------------------------------------------------------------
(Name of issuer of the securities held pursuant to the plan)
4000 Metropolitan Drive, Orange, California 92868-3510
- -------------------------------------------- -------------
(Address of principal executive offices of (Zip code)
issuer of securities)
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1
BERGEN BRUNSWIG PRE-TAX INVESTMENT RETIREMENT ACCOUNT
================================================================================
INDEX
-----
PAGE NO.
--------
INDEPENDENT AUDITORS' REPORT 3
FINANCIAL STATEMENTS:
Statements of Net Assets Available for Benefits
at September 29, 1998 and 1997 5
Statements of Changes in Net Assets Available for
Benefits for the Year Ended September 29, 1998, the
Period from January 1, 1997 to September 29, 1997
and the Year Ended December 31, 1996 7
Notes to Financial Statements 10
SUPPLEMENTAL SCHEDULES:
1. Line 27a - Schedule of Assets Held for
Investment Purposes at September 29, 1998 16
2. Line 27d - Schedule of Reportable Transactions
for the Year Ended September 29, 1998 19
SUPPLEMENTAL SCHEDULES OMITTED
------------------------------
Supplemental schedules not listed above are omitted
because of the absence of conditions under which they are
required.
SIGNATURE 20
INDEPENDENT AUDITORS' CONSENT - Exhibit 23 21
2
INDEPENDENT AUDITORS' REPORT
================================================================================
Bergen Brunswig Pre-Tax Investment
Retirement Account:
We have audited the accompanying statements of net assets available for benefits
of the Bergen Brunswig Pre-Tax Investment Retirement Account (the Plan) as of
September 29, 1998 and 1997, and the related statements of changes in net assets
available for benefits for the year ended September 29, 1998, the period from
January 1, 1997 to September 29, 1997 and the year ended December 31, 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, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan at September 29,
1998 and 1997, and the changes in net assets available for benefits for the year
ended September 29, 1998, the period from January 1, 1997 to September 29, 1997
and the year ended December 31, 1996 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 information by fund is
presented for the purpose of additional analysis of the basic financial
statements rather than to present information regarding the net assets available
for benefits and changes in net assets available for benefits of the individual
funds, and is not a required part of the basic financial statements. Also, the
accompanying supplemental schedules of (1) Line 27a - Schedule of Assets Held
for Investment Purposes at September 29, 1998, and (2) Line 27d - Schedule of
Reportable Transactions for the year ended September 29, 1998 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
3
Act of 1974. This supplemental information and supplemental schedules are the
responsibility of the Plan's management. Such supplemental information by fund
and supplemental schedules have been subjected to the auditing procedures
applied in our audits of the basic financial statements and, in our opinion, are
fairly stated in all material respects when considered in relation to the basic
financial statements taken as a whole.
/s/ Deloitte & Touche LLP
Costa Mesa, California
March 22, 1999
4
BERGEN BRUNSWIG PRE-TAX INVESTMENT RETIREMENT ACCOUNT
-----------------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
AT SEPTEMBER 29, 1998
SUPPLEMENTAL INFORMATION BY FUND
--------------------------------------------------------------------------------
MERRILL
GEORGE LYNCH MERRILL MERRILL
FIDELITY PUTNAM COMPANY GLOBAL LYNCH LYNCH
MAGELLAN FUND STOCK ALLOCATION EQUITY INDEX CAPITAL
FUND CLASS A FUND FUND A TRUST 1 FUND A
----------- ----------- ----------- ----------- ------------ ----------
ASSETS:
Investments $55,383,788 $15,775,193 $29,081,612 $5,291,916 $15,210,626 $7,007,691
Interfund transfers
receivable 36,684 9,414 16,660 4,303 7,841 3,855
Contributions receivable 160,538 49,406 77,146 26,092 69,028 32,413
Interest and dividend
income receivable 12,101 3,288 94,328 1,479 2,812 1,276
----------- ----------- ----------- ----------- ----------- ----------
TOTAL ASSETS 55,593,111 15,837,301 29,269,746 5,323,790 15,290,307 7,045,235
----------- ----------- ----------- ----------- ----------- ----------
LIABILITIES:
Interfund transfers
payable - - - - - -
----------- ----------- ----------- ----------- ----------- ----------
TOTAL LIABILITIES - - - - - -
----------- ----------- ----------- ----------- ----------- ----------
NET ASSETS AVAILABLE
FOR BENEFITS $55,593,111 $15,837,301 $29,269,746 $5,323,790 $15,290,307 $7,045,235
=========== =========== =========== =========== =========== ==========
- --------------------------------------------------------------------------------------------------------------
5
BERGEN BRUNSWIG PRE-TAX INVESTMENT RETIREMENT ACCOUNT
-----------------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS (Continued)
AT SEPTEMBER 29, 1998
SUPPLEMENTAL INFORMATION BY FUND
------------------------------------------------------------------------------
MERRILL
LYNCH MERRILL
CORPORATE LYNCH MERRILL TEMPLETON
BOND FUND RETIREMENT LYNCH FOREIGN AIM
INVESTMENT PRESERVATION GROWTH FUND CONSTELLATION PARTICIPANT
GRADE A TRUST FUND A CLASS 1 FUND A LOANS TOTAL
----------- ------------ ---------- ---------- ------------- ----------- -------------
ASSETS:
Investments $3,635,764 $ 64,194,962 $2,626,807 $1,127,718 $ 2,134,696 $11,157,826 $212,628,599
Interfund transfers
receivable 2,352 48,485 2,750 852 2,014 - 135,210
Contributions receivable 15,057 256,145 18,866 6,299 15,964 - 726,954
Interest and dividend
income receivable 794 16,194 868 325 675 - 134,140
----------- ------------ ---------- ---------- ------------ ----------- -------------
TOTAL ASSETS 3,653,967 64,515,786 2,649,291 1,135,194 2,153,349 11,157,826 213,624,903
----------- ------------ ---------- ---------- ------------ ----------- -------------
LIABILITIES:
Interfund transfers
payable - - - - - 135,210 135,210
----------- ------------ ---------- ---------- ------------ ----------- -------------
TOTAL LIABILITIES - - - - - 135,210 135,210
----------- ------------ ---------- ---------- ------------ ----------- -------------
NET ASSETS AVAILABLE
FOR BENEFITS $3,653,967 $ 64,515,786 $2,649,291 $1,135,194 $ 2,153,349 $11,022,616 $213,489,693
=========== ============ ========== ========== ============ =========== =============
- ----------------------------------------------------------------------------------------------------------------------------
5a
BERGEN BRUNSWIG PRE-TAX INVESTMENT RETIREMENT ACCOUNT
-----------------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
AT SEPTEMBER 29, 1997
SUPPLEMENTAL INFORMATION BY FUND
---------------------------------------------------------------------------------
MERRILL
GEORGE LYNCH MERRILL MERRILL
FIDELITY PUTNAM COMPANY GLOBAL LYNCH LYNCH
MAGELLAN FUND STOCK ALLOCATION EQUITY INDEX CAPITAL
FUND CLASS A FUND FUND A TRUST 1 FUND A
----------- ----------- ----------- ----------- ------------ ----------
ASSETS:
Investments $51,755,416 $15,416,700 $27,237,361 $7,146,207 $ 10,709,602 $6,564,033
Interfund transfers
receivable 27,433 7,607 11,513 4,661 5,065 2,866
Contributions receivable 136,729 43,112 64,624 29,955 42,729 26,176
Interest and dividend
income receivable 8,153 2,416 4,025 1,544 1,421 987
----------- ----------- ----------- ----------- -=---------- ----------
TOTAL ASSETS 51,927,731 15,469,835 27,317,523 7,182,367 10,758,817 6,594,062
----------- ----------- ----------- ----------- ------------ ----------
LIABILITIES:
Interfund transfers
payable - - - - - -
----------- ----------- ----------- ----------- -- --------- ----------
TOTAL LIABILITIES - - - - - -
----------- ----------- ----------- ----------- ------------ ----------
NET ASSETS AVAILABLE
FOR BENEFITS $51,927,731 $15,469,835 $27,317,523 $7,182,367 $ 10,758,817 $6,594,062
=========== =========== =========== =========== ============ ==========
- --------------------------------------------------------------------------------------------------------------
6
BERGEN BRUNSWIG PRE-TAX INVESTMENT RETIREMENT ACCOUNT
-----------------------------------------------------
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS (Continued)
AT SEPTEMBER 29, 1997
SUPPLEMENTAL INFORMATION BY FUND
--------------------------------------------------------------------------------
MERRILL
LYNCH MERRILL
CORPORATE LYNCH MERRILL TEMPLETON
BOND FUND RETIREMENT LYNCH FOREIGN AIM
INVESTMENT PRESERVATION GROWTH FUND CONSTELLATION PARTICIPANT
GRADE A TRUST FUND A CLASS 1 FUND A LOANS TOTAL
---------- ------------ ----------- ---------- ------------- ----------- ------------
ASSETS:
Investments $3,141,531 $60,326,647 $1,755,018 $767,411 $ 994,710 $10,695,970 $196,510,606
Interfund transfers
receivable 1,910 38,906 1,345 692 472 - 102,470
Contributions receivable 13,162 214,060 10,402 4,057 4,772 - 589,778
Interest and dividend
income receivable 664 12,832 513 243 263 - 33,061
---------- ------------ ---------- ---------- ------------ ----------- ------------
TOTAL ASSETS 3,157,267 60,592,445 1,767,278 772,403 1,000,217 10,695,970 197,235,915
---------- ------------ ---------- ---------- ------------ ----------- ------------
LIABILITIES:
Interfund transfers
payable - - - - - 102,470 102,470
---------- ------------ ---------- ---------- ------------ ----------- ------------
TOTAL LIABILITIES - - - - - 102,470 102,470
---------- ------------ ---------- ---------- ------------ ----------- ------------
NET ASSETS AVAILABLE
FOR BENEFITS $3,157,267 $60,592,445 $1,767,278 $772,403 $1,000,217 $10,593,500 $197,133,445
========== ============ ========== ========== ============ =========== ============
- ----------------------------------------------------------------------------------------------------------------------------
6a
BERGEN BRUNSWIG PRE-TAX INVESTMENT RETIREMENT ACCOUNT
-----------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED SEPTEMBER 29, 1998
SUPPLEMENTAL INFORMATION BY FUND
-----------------------------------------------------------------------------------
MERRILL
GEORGE LYNCH MERRILL MERRILL
FIDELITY PUTNAM COMPANY GLOBAL LYNCH LYNCH
MAGELLAN FUND STOCK ALLOCATION EQUITY INDEX CAPITAL
FUND CLASS A FUND FUND A TRUST 1 FUND A
----------- ----------- ----------- ---------- ------------ -----------
ADDITIONS:
Contributions:
Participants $ 3,130,349 $ 1,012,854 $ 1,479,845 $ 581,132 $1,161,489 $ 644,377
Employer 993,199 326,109 452,658 191,699 350,617 198,379
Transfers of participant balances 6,909,842 2,194,927 7,485,889 740,426 5,936,627 1,688,767
Interest income 254,788 84,168 117,413 38,801 54,629 29,375
Dividend income 3,832,347 1,509,782 364,156 901,067 - 589,912
Participant loans - - - - - -
Participant loan repayments 1,048,933 277,315 497,069 142,053 196,753 127,648
Net increase in fair value
of investments 135,089 - 6,287,252 - 1,241,213 -
----------- ----------- ----------- ---------- ----------- ----------
TOTAL ADDITIONS 16,304,547 5,405,155 16,684,282 2,595,178 8,941,328 3,278,458
----------- ----------- ----------- ---------- ----------- ----------
DEDUCTIONS:
Withdrawals 3,921,273 1,667,798 1,398,704 537,373 629,016 713,748
Transfers of participant
balances 7,169,625 2,266,637 13,333,355 2,352,444 3,461,707 1,240,679
Administrative expenses - - - - - -
Participant loans 1,548,269 420,381 - 138,128 319,115 129,486
Participant loan repayments - - - - - -
Net decrease in fair value
of investments - 682,873 - 1,425,810 - 743,372
----------- ----------- ----------- ---------- ----------- ----------
TOTAL DEDUCTIONS 12,639,167 5,037,689 14,732,059 4,453,755 4,409,838 2,827,285
----------- ----------- ----------- ---------- ----------- ----------
NET INCREASE (DECREASE) 3,665,380 367,466 1,952,223 (1,858,577) 4,531,490 451,173
NET ASSETS AVAILABLE FOR
BENEFITS AT BEGINNING OF PERIOD 51,927,731 15,469,835 27,317,523 7,182,367 10,758,817 6,594,062
----------- ----------- ----------- ---------- ----------- ----------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF PERIOD $55,593,111 $15,837,301 $29,269,746 $5,323,790 $15,290,307 $7,045,235
=========== =========== =========== ========== =========== ==========
- ---------------------------------------------------------------------------------------------------------------------
<FN>
See accompanying notes to financial statements.
</FN>
7
BERGEN BRUNSWIG PRE-TAX INVESTMENT RETIREMENT ACCOUNT
-----------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (Continued)
FOR THE YEAR ENDED SEPTEMBER 29, 1998
SUPPLEMENTAL INFORMATION BY FUND
----------------------------------------------------------------------------
MERRILL
LYNCH MERRILL
CORPORATE LYNCH MERRILL TEMPLETON
BOND FUND RETIREMENT LYNCH FOREIGN AIM
INVESTMENT PRESERVATION GROWTH FUND CONSTELLATION PARTICIPANT
GRADE A TRUST FUND A CLASS 1 FUND A LOANS TOTAL
---------- ------------ ---------- ---------- ------------- ----------- ------------
ADDITIONS:
Contributions:
Participants $ 298,491 $ 4,212,849 $ 407,848 $ 153,836 $ 279,070 $ - $ 13,362,140
Employer 98,224 1,674,035 109,886 37,296 65,775 - 4,497,877
Transfers of participant balances 941,651 14,814,513 3,153,123 1,386,787 3,022,013 - 48,274,565
Interest income 17,680 3,385,863 19,623 7,251 13,259 - 4,022,850
Dividend income 210,293 - 174,397 93,444 69,051 - 7,744,449
Participant loans - - - - - 4,905,397 4,905,397
Participant loan repayments 74,907 1,977,208 71,074 20,413 42,908 - 4,476,281
Net increase in fair value
of investments 87,343 - - - - - 7,750,897
---------- ----------- ---------- ---------- ----------- ----------- ------------
TOTAL ADDITIONS 1,728,589 26,064,468 3,935,951 1,699,027 3,492,076 4,905,397 95,034,456
---------- ----------- ---------- ---------- ----------- ----------- ------------
DEDUCTIONS:
Withdrawals 497,228 6,666,968 100,517 71,959 144,212 - 16,348,796
Transfers of participant
balances 648,753 13,319,709 1,713,071 894,480 1,874,105 - 48,274,565
Administrative expenses - 111,870 - - - - 111,870
Participant loans 85,908 2,042,580 118,794 22,660 80,076 - 4,905,397
Participant loan repayments - - - - - 4,476,281 4,476,281
Net decrease in fair value
of investments - - 1,121,556 347,137 240,551 - 4,561,299
---------- ----------- ---------- ---------- ----------- ----------- ------------
TOTAL DEDUCTIONS 1,231,889 22,141,127 3,053,938 1,336,236 2,338,944 4,476,281 78,678,208
---------- ----------- ---------- ---------- ----------- ----------- ------------
NET INCREASE (DECREASE) 496,700 3,923,341 882,013 362,791 1,153,132 429,116 16,356,248
NET ASSETS AVAILABLE FOR
BENEFITS AT BEGINNING OF PERIOD 3,157,267 60,592,445 1,767,278 772,403 1,000,217 10,593,500 197,133,445
---------- ----------- ---------- ---------- ----------- ----------- ------------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF PERIOD $3,653,967 $64,515,786 $2,649,291 $1,135,194 $ 2,153,349 $11,022,616 $213,489,693
========== =========== ========== ========== =========== =========== ============
- ------------------------------------------------------------------------------------------------------------------------------
<FN>
See accompanying notes to financial statements.
</FN>
7a
BERGEN BRUNSWIG PRE-TAX INVESTMENT RETIREMENT ACCOUNT
-----------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE PERIOD FROM JANUARY 1, 1997 TO SEPTEMBER 29, 1997
SUPPLEMENTAL INFORMATION BY FUND
-------------------------------------------------------------------------------
MERRILL
GEORGE LYNCH MERRILL MERRILL
FIDELITY PUTNAM COMPANY GLOBAL LYNCH LYNCH
MAGELLAN FUND STOCK ALLOCATION EQUITY INDEX CAPITAL
FUND CLASS A FUND FUND A TRUST 1 FUND A
----------- ---------- ------------ ---------- ------------ -----------
ADDITIONS:
Contributions:
Participants $ 2,403,471 $ 812,270 $ 898,476 $ 599,412 $ 883,756 $ 490,868
Employer 717,663 227,103 301,793 156,808 174,489 131,852
Transfers of participant balances 4,053,832 1,265,751 5,956,323 1,379,506 4,197,647 737,233
Interest income 169,243 49,113 66,865 27,571 24,202 20,146
Dividend income 1,200,049 357,941 225,375 158,442 - 290,077
Participant loans - - - - - -
Participant loan repayments 736,560 215,274 274,385 121,035 110,656 89,336
Net increase in fair value
of investments 10,294,052 2,161,656 11,744,945 718,615 2,067,365 808,048
----------- ----------- ----------- ---------- ----------- ----------
TOTAL ADDITIONS 19,574,870 5,089,108 19,468,162 3,161,389 7,458,115 2,567,560
----------- ----------- ----------- ---------- ----------- ----------
DEDUCTIONS:
Withdrawals 2,227,203 752,597 785,255 211,352 445,418 175,466
Transfers of participant
balances 7,373,801 1,843,298 6,246,217 1,622,787 1,219,808 1,147,438
Administrative expenses - - - - - -
Participant loans 1,374,736 298,979 - 225,009 205,048 135,042
Participant loan repayments - - - - - -
----------- ----------- ----------- ---------- ----------- ----------
TOTAL DEDUCTIONS 10,975,740 2,894,874 7,031,472 2,059,148 1,870,274 1,457,946
----------- ----------- ----------- ---------- ----------- ----------
NET INCREASE (DECREASE) 8,599,130 2,194,234 12,436,690 1,102,241 5,587,841 1,109,614
NET ASSETS AVAILABLE FOR
BENEFITS AT BEGINNING OF PERIOD 43,328,601 13,275,601 14,880,833 6,080,126 5,170,976 5,484,448
----------- ----------- ----------- ---------- ----------- ----------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF PERIOD $51,927,731 $15,469,835 $27,317,523 $7,182,367 $10,758,817 $6,594,062
=========== =========== =========== ========== =========== ==========
- ------------------------------------------------------------------------------------------------------------------
<FN>
See accompanying notes to financial statements.
</FN>
8
BERGEN BRUNSWIG PRE-TAX INVESTMENT RETIREMENT ACCOUNT
-----------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (Continued)
FOR THE PERIOD FROM JANUARY 1, 1997 TO SEPTEMBER 29, 1997
SUPPLEMENTAL INFORMATION BY FUND
-----------------------------------------------------------------------------
MERRILL
LYNCH MERRILL
CORPORATE LYNCH MERRILL TEMPLETON
BOND FUND RETIREMENT LYNCH FOREIGN AIM
INVESTMENT PRESERVATION GROWTH FUND CONSTELLATION PARTICIPANT
GRADE A TRUST FUND A CLASS 1 FUND A LOANS TOTAL
----------- ------------ ---------- ---------- ------------- ----------- ------------
ADDITIONS:
Contributions:
Participants $ 272,687 $ 2,645,938 $ 58,857 $ 33,699 $ 26,711 $ - $ 9,126,145
Employer 70,346 1,114,009 12,095 6,535 6,669 - 2,919,362
Transfers of participant balances 225,524 9,077,582 1,911,218 2,025,376 1,313,297 - 32,143,289
Interest income 12,886 2,828,542 2,413 1,981 1,279 - 3,204,241
Dividend income 147,014 - 6,637 - - - 2,385,535
Participant loans - - - - - 4,379,997 4,379,997
Participant loan repayments 50,784 1,020,405 7,679 6,334 4,102 - 2,636,550
Net increase in fair value
of investments 21,386 - 201,570 41,011 67,107 - 28,125,755
----------- ----------- ---------- ---------- ----------- ----------- ------------
TOTAL ADDITIONS 800,627 16,686,476 2,200,469 2,114,936 1,419,165 4,379,997 84,920,874
----------- ----------- ---------- ---------- ----------- ----------- ------------
DEDUCTIONS:
Withdrawals 80,235 4,941,044 - - - (155,140) 9,463,430
Transfers of participant
balances 896,612 9,629,338 422,323 1,334,877 406,790 - 32,143,289
Administrative expenses - 63,129 - - - - 63,129
Participant loans 103,793 2,006,708 10,868 7,656 12,158 - 4,379,997
Participant loan repayments - - - - - 2,636,550 2,636,550
----------- ----------- ---------- ---------- ----------- ----------- ------------
TOTAL DEDUCTIONS 1,080,640 16,640,219 433,191 1,342,533 418,948 2,481,410 48,686,395
----------- ----------- ---------- ---------- ----------- ----------- ------------
NET INCREASE (DECREASE) (280,013) 46,257 1,767,278 772,403 1,000,217 1,898,587 36,234,479
NET ASSETS AVAILABLE FOR
BENEFITS AT BEGINNING OF PERIOD 3,437,280 60,546,188 - - - 8,694,913 160,898,966
----------- ----------- ---------- ---------- ----------- ----------- ------------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF PERIOD $3,157,267 $60,592,445 $1,767,278 $ 772,403 $ 1,000,217 $10,593,500 $197,133,445
=========== =========== ========== ========== =========== =========== ============
- ------------------------------------------------------------------------------------------------------------------------------
<FN>
See accompanying notes to financial statements.
</FN>
8a
BERGEN BRUNSWIG PRE-TAX INVESTMENT RETIREMENT ACCOUNT
-----------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1996
SUPPLEMENTAL INFORMATION BY FUND
----------------------------------------------------------------------------------
MERRILL
BERGEN GEORGE LYNCH MERRILL
BRUNSWIG FIDELITY PUTNAM COMPANY GLOBAL LYNCH
FIXED MAGELLAN FUND STOCK ALLOCATION EQUITY INDEX
FUND FUND CLASS A FUND FUND A TRUST 1
----------- ----------- ------------ ---------- ----------- ------------
ADDITIONS:
Contributions:
Participants $ - $ 2,981,565 $ 769,417 $ 851,204 $ 455,569 $ 400,665
Employer - 1,037,309 273,198 323,827 155,515 155,765
Other rollovers - 134,883 46,839 22,039 81,063 38,301
Transfer from Colonial 401(k) plan - 1,868,799 799,475 256,439 957,657 1,499,564
Transfer from B&C defined benefit plan - 15,768 11,518 7,077 1,825 9,019
Transfers of participant balances 1,457 5,899,635 1,399,885 3,411,886 1,922,961 2,967,327
Interest income 393,019 216,649 58,688 68,688 25,064 18,757
Dividend income - 6,599,683 1,153,937 223,110 555,562 17,408
Participant loans - - - - - -
Participant loan repayments - 913,501 215,275 274,835 96,057 83,862
Net increase in fair value
of investments - - 637,622 1,774,607 134,572 785,839
------------ ----------- ----------- ----------- ---------- ----------
TOTAL ADDITIONS 394,476 19,667,792 5,365,854 7,213,712 4,385,845 5,976,507
------------ ----------- ----------- ----------- ---------- ----------
DEDUCTIONS:
Withdrawals 465,940 2,830,677 504,719 708,887 234,993 568,443
Transfers of participant
balances 26,359,126 7,951,574 1,025,695 2,927,807 794,196 1,257,857
Administrative expenses - - - - - -
Participant loans 141,987 1,491,949 354,666 - 115,035 119,048
Participant loan repayments - - - - - -
Net decrease in fair value
of investments - 1,930,769 - - - -
------------ ----------- ----------- ----------- ---------- ----------
TOTAL DEDUCTIONS 26,967,053 14,204,969 1,885,080 3,636,694 1,144,224 1,945,348
------------ ----------- ----------- ----------- ---------- ----------
NET INCREASE (DECREASE) (26,572,577) 5,462,823 3,480,774 3,577,018 3,241,621 4,031,159
NET ASSETS AVAILABLE FOR
BENEFITS AT BEGINNING OF YEAR 26,572,577 37,865,778 9,794,827 11,303,815 2,838,505 1,139,817
------------ ----------- ----------- ----------- ---------- ----------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $ - $43,328,601 $13,275,601 $14,880,833 $6,080,126 $5,170,976
============ =========== =========== =========== ========== ==========
- --------------------------------------------------------------------------------------------------------------------------
<FN>
See accompanying notes to financial statements.
</FN>
9
BERGEN BRUNSWIG PRE-TAX INVESTMENT RETIREMENT ACCOUNT
-----------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (Continued)
FOR THE YEAR ENDED DECEMBER 31, 1996
SUPPLEMENTAL INFORMATION BY FUND
------------------------------------------------------
MERRILL
LYNCH MERRILL
MERRILL CORPORATE LYNCH
LYNCH BOND FUND RETIREMENT
CAPITAL INVESTMENT PRESERVATION PARTICIPANT
FUND A GRADE A TRUST LOANS TOTAL
----------- ----------- ------------ ------------ -----------
ADDITIONS:
Contributions:
Participants $ 458,509 $ 266,181 $ 3,477,456 $ - $ 9,660,566
Employer 158,287 95,748 1,339,991 - 3,539,640
Other rollovers 48,420 58,874 108,028 - 538,447
Transfer from Colonial 401(k) plan 1,523,486 1,041,104 2,392,322 - 10,338,846
Transfer from B&C defined benefit plan 17,505 - 164,049 - 226,761
Transfers of participant balances 1,091,739 925,515 34,371,294 - 51,991,699
Interest income 22,376 16,063 3,540,190 - 4,359,494
Dividend income 542,611 194,406 - - 9,286,717
Participant loans - - - 4,488,333 4,488,333
Participant loan repayments 95,838 67,119 1,314,503 - 3,060,990
Net increase in fair value
of investments 97,213 - - - 3,429,853
----------- ----------- ----------- ------------ ------------
TOTAL ADDITIONS 4,055,984 2,665,010 46,707,833 4,488,333 100,921,346
----------- ----------- ----------- ------------ ------------
DEDUCTIONS:
Withdrawals 277,604 99,731 6,471,155 793,776 12,955,925
Transfers of participant
balances 815,812 536,867 10,322,765 - 51,991,699
Administrative expenses - - 93,427 - 93,427
Participant loans 126,440 119,840 2,019,368 - 4,488,333
Participant loan repayments - - - 3,060,990 3,060,990
Net decrease in fair value
of investments - 47,334 - - 1,978,103
----------- ----------- ----------- ------------ ------------
TOTAL DEDUCTIONS 1,219,856 803,772 18,906,715 3,854,766 74,568,477
----------- ----------- ----------- ------------ ------------
NET INCREASE (DECREASE) 2,836,128 1,861,238 27,801,118 633,567 26,352,869
NET ASSETS AVAILABLE FOR
BENEFITS AT BEGINNING OF YEAR 2,648,320 1,576,042 32,745,070 8,061,346 134,546,097
----------- ----------- ----------- ------------ ------------
NET ASSETS AVAILABLE FOR
BENEFITS AT END OF YEAR $5,484,448 $3,437,280 $60,546,188 $8,694,913 $160,898,966
=========== =========== =========== ============ ============
- ----------------------------------------------------------------------------------------------------------------
<FN>
See accompanying notes to financial statements.
</FN>
9a
BERGEN BRUNSWIG PRE-TAX INVESTMENT RETIREMENT ACCOUNT
================================================================================
NOTES TO FINANCIAL STATEMENTS
-----------------------------
FOR THE YEAR ENDED SEPTEMBER 29, 1998,
--------------------------------------
THE PERIOD FROM JANUARY 1, 1997 TO SEPTEMBER 29, 1997
-----------------------------------------------------
AND THE YEAR ENDED DECEMBER 31, 1996
------------------------------------
1. PLAN DESCRIPTION AND SIGNIFICANT ACCOUNTING POLICIES
The following brief description of the Bergen Brunswig Pre-Tax
Investment Retirement Account ("Plan") is provided for general
information purposes only. Participants should refer to the Plan
Agreement for more complete information.
A. General
-------
The Plan was established effective September 1, 1984. The Plan
is a deferred compensation and profit sharing plan covering
substantially all employees of Bergen Brunswig Corporation and
its subsidiaries ("Employer") who have completed more than 30
days of service. The Plan is subject to the provisions of the
Employee Retirement Income Security Act of 1974 ("ERISA"). The
accounting records of the Plan are maintained on the accrual
basis.
B. Funding Policy
--------------
Participants are entitled to defer 2% to 15% of their pre-tax
compensation through contributions to the Plan up to a maximum
of $10,000 in calendar 1998. Participants are not allowed to
make any other contributions to the Plan except for rollover
contributions from other retirement plans. The Employer
contributes $.50 for each $1.00 contributed by the
participant, up to the participant's investment of 6% of the
participant's salary. The Employer may also make an additional
contribution to the Plan at the Employer's discretion.
Expenses of the Plan, up to the amount of forfeitures of
Employer contributions determined at the last Plan valuation
date, are paid by the Plan. Expenses of the Plan in excess of
Employer contribution forfeitures are paid directly by the
Employer. For the year ended September 29, 1998, the period
from January 1, 1997 to September 29, 1997 and the year ended
December 31, 1996, expenses of $111,870, $63,129 and $93,427,
respectively, were paid by the Plan from forfeitures of
Employer contributions.
10
C. Investments
-----------
Upon joining the Plan, participants can elect to invest their
accounts in the following options:
1. Fidelity Magellan Fund (primarily equity
securities);
2. George Putnam Fund Class A (primarily debt
and equity securities);
3. Company Stock Fund (Bergen Brunswig
Corporation Class A Common Stock);
4. Merrill Lynch Global Allocation Fund A
(primarily United States and foreign equity,
debt and money market securities);
5. Merrill Lynch Equity Index Trust 1
(primarily equity securities included in the
Standard & Poors 500 Index);
6. Merrill Lynch Capital Fund A (primarily
equity, debt, convertible and money market
securities);
7. Merrill Lynch Corporate Bond Fund Investment
Grade A (primarily high-grade, taxable,
fixed income securities);
8. Merrill Lynch Retirement Preservation Trust
(primarily broadly diversified Guaranteed
Investment Contracts, U.S. Government and
U.S. Government agency and money market
securities);
9. Merrill Lynch Growth Fund A (primarily
United States and foreign equity
securities);
10. Templeton Foreign Fund Class I (primarily
foreign debt and equity securities); and
11. AIM Constellation Fund A (primarily
securities of small- and medium-sized
companies).
Participants have direct, daily access to investment and
account information (including change of investment direction,
fund transfers and deferral percentage) through The Merrill
Lynch Participant Service Center.
11
The Fidelity Magellan Fund, the George Putnam Fund Class A,
the Company Stock Fund, the Merrill Lynch Global Allocation
Fund A, the Merrill Lynch Equity Index Trust 1, the Merrill
Lynch Capital Fund A, the Merrill Lynch Corporate Bond Fund
Investment Grade A, the Merrill Lynch Growth Fund A, the
Templeton Foreign Fund Class 1 and the AIM Constellation Fund
A are stated at fair value as determined by quoted market
prices. The Merrill Lynch Retirement Preservation Trust is
stated at cost, which approximates fair value. Investment
transactions are recorded on a trade-date basis.
Participants may borrow against a maximum of 50% of their
interests in the Plan up to $50,000, except that participants
may not borrow against their interest in the Company Stock
Fund. Participants are entitled to hold two loans
simultaneously: a short-term loan (1 to 5 years) and a
long-term loan (5 to 15 years). The long-term loan applies
only to the purchase of a participant's primary residence.
Such loans are shown as separate investments of the Plan, with
interest rates ranging from 6.00% to 12.00%, and are stated at
cost, which approximates fair value.
The number of participants in each fund was as follows:
September 29,
-------------------
1998 1997
---- ----
Fidelity Magellan Fund 2,417 2,526
George Putnam Fund Class A 1,148 1,258
Company Stock Fund 1,809 1,870
Merrill Lynch Global
Allocation Fund A 692 836
Merrill Lynch Equity Index Trust 1 900 780
Merrill Lynch Capital Fund A 758 789
Merrill Lynch Corporate
Bond Fund Investment Grade A 549 561
Merrill Lynch Retirement
Preservation Trust 4,447 4,452
Merrill Lynch Growth Fund A 335 176
Templeton Foreign Fund Class 1 148 100
AIM Constellation Fund A 269 118
Participant Loans 1,549 1,585
The total number of participants in the Plan was less than the
sum of the number of participants shown above because many
were participating in more than one fund.
12
D. Benefit Distribution
--------------------
A participant's account shall be distributed in a lump sum
upon retirement, less any loans outstanding. Account
withdrawals are permitted by participants who have attained
age 59-1/2 or who suffer certain financial hardships and meet
criteria established by the Internal Revenue Service. All
participants not eligible for normal retirement vest in
Employer contributions at 20% for each continuous plan year of
participation. Participants who retire or terminate employment
prior to retirement may elect to receive the vested portion of
their accounts in a lump sum distribution or leave the vested
portion of their accounts in the Plan if such accounts
aggregate $4,000 or more. Participants are 100% vested in
their own contributions at all times.
E. Death and Disability Benefits
-----------------------------
Upon the death of a participant, the beneficiary receives, in
a lump sum, the vested amount in the account. Participants who
become disabled will receive distributions in accordance with
normal retirement benefits.
F. Plan Termination
----------------
The Employer has the right at any time to declare the Plan
terminated completely or as to any of the Employer's
divisions, facilities or operational units.
In the event that the Plan terminates, the accounts of all
participants will become fully vested.
G. Other
-----
Certain reclassifications have been made in the 1997 and 1996
financial statements and notes to conform to 1998
presentations.
2. INCOME TAX STATUS
The Internal Revenue Service has determined and informed the Company by
letter dated February 10, 1997, that the Plan and related trust are
designed in accordance with applicable sections of the Internal Revenue
Code (the "Code"). The Plan has been amended since receiving the
determination letter. However, the Plan administrator believes that the
Plan is currently designed and being operated in compliance with the
applicable requirements
13
of the Code and the related trust was tax-exempt as of the financial
statement date. Therefore, no provision for income taxes has been
included in the Plan's financial statements.
3. CHANGE IN PLAN FISCAL YEAR
Effective in September 1997, the Plan changed its fiscal year from a
twelve-month period ending December 31 to a twelve-month period ending
September 29. The Statements of Changes in Net Assets Available for
Plan Benefits are presented for the twelve-month period ended September
29, 1998, the period from January 1, 1997 to September 29, 1997 and the
twelve-month period ended December 31, 1996.
4. CHANGE IN INVESTMENT OPTIONS
On June 1, 1997, the following investment options were added to the
Plan:
1. Merrill Lynch Growth Fund A (primarily United States
and foreign equity securities);
2. Templeton Foreign Fund Class I (primarily foreign debt
and equity securities); and
3. AIM Constellation Fund A (primarily securities of
small- and medium-sized companies).
5. OTHER
Effective July 1, 1997, the Plan was amended to allow employees of the
Employer to join the Plan after they have completed 30 days of service,
and to entitle participants to defer 2% to 15% of their compensation
through contributions to the Plan. Upon completion of the 30-day
service requirement, and unless participants direct otherwise,
participants are automatically enrolled in the Plan, deferring 2% of
their compensation through contributions to the Merrill Lynch
Retirement Preservation Trust.
On March 31, 1996, remaining account balances in the Bergen Brunswig
Fixed Fund were transferred into the Merrill Lynch Retirement
Preservation Trust.
During February 1996, the Guaranteed Insurance Contract with Life of
Virginia in the Bergen Brunswig Fixed Fund was surrendered at contract
value.
14
6. SUBSEQUENT EVENTS
Effective January 1, 1999, the following changes were made to the Plan:
1. All participants vest immediately in Employer
contributions from the first day of participation in
the Plan.
2. The Employer contributes $1.00 for each $1.00
contributed by the participant, up to the
participant's investment of 3% of the participant's
salary and contributes $.50 for each additional $1.00
contributed by the participant, up to the
participant's investment of an additional 2% of the
participant's salary.
15
SUPPLEMENTAL SCHEDULE 1
BERGEN BRUNSWIG PRE-TAX INVESTMENT RETIREMENT ACCOUNT
-----------------------------------------------------
LINE 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT SEPTEMBER 29, 1998
- --------------------------------------------------------------------------------------------------------------------
DESCRIPTION OF FAIR
IDENTITY OF ISSUE INVESTMENT VALUE COST
- --------------------------------------------------------------------------------------------------------------------
FIDELITY MAGELLAN FUND Schedule $ 55,383,788 $ 45,387,935
GEORGE PUTNAM FUND CLASS A Schedule 15,775,193 13,940,957
COMPANY STOCK FUND Schedule 29,081,612 14,106,650
MERRILL LYNCH GLOBAL ALLOCATION FUND A Schedule 5,291,916 5,986,085
MERRILL LYNCH EQUITY INDEX TRUST 1 Schedule 15,210,626 12,057,085
MERRILL LYNCH CAPITAL FUND A Schedule 7,007,691 7,049,870
MERRILL LYNCH CORPORATE BOND FUND
INVESTMENT GRADE A Schedule 3,635,764 3,521,801
MERRILL LYNCH RETIREMENT PRESERVATION TRUST Schedule 64,194,962 64,194,962
MERRILL LYNCH GROWTH FUND A Schedule 2,626,807 3,389,406
TEMPLETON FOREIGN FUND CLASS 1 Schedule 1,127,718 1,411,014
AIM CONSTELLATION FUND A Schedule 2,134,696 2,322,536
PARTICIPANT LOANS Schedule 11,157,826 11,157,826
----------------- -----------------
TOTAL INVESTMENTS $212,628,599 $184,526,127
================= =================
16
SUPPLEMENTAL SCHEDULE 1 (DETAIL)
BERGEN BRUNSWIG PRE-TAX INVESTMENT RETIREMENT ACCOUNT
-----------------------------------------------------
DETAIL - LINE 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT SEPTEMBER 29, 1998
- --------------------------------------------------------------------------------------------------------------------
FAIR
SHARES DESCRIPTION VALUE COST
- --------------------------------------------------------------------------------------------------------------------
551,302 FIDELITY MAGELLAN FUND $ 55,383,788 $ 45,387,935
---------------------- ================= =================
872,039 GEORGE PUTNAM FUND CLASS A $ 15,775,193 $ 13,940,957
-------------------------- ================= =================
COMPANY STOCK FUND
------------------
BERGEN BRUNSWIG CORPORATION
556,586 CLASS A COMMON STOCK $ 29,081,612 $ 14,106,650
================= =================
412,464 MERRILL LYNCH GLOBAL ALLOCATION FUND A $ 5,291,916 $ 5,986,085
-------------------------------------- ================= =================
213,216 MERRILL LYNCH EQUITY INDEX TRUST 1 $ 15,210,626 $ 12,057,085
---------------------------------- ================= =================
217,428 MERRILL LYNCH CAPITAL FUND A $ 7,007,691 $ 7,049,870
---------------------------- ================= =================
17
SUPPLEMENTAL SCHEDULE 1 (DETAIL), CONTINUED
BERGEN BRUNSWIG PRE-TAX INVESTMENT RETIREMENT ACCOUNT
-----------------------------------------------------
DETAIL - LINE 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT SEPTEMBER 29, 1998
- --------------------------------------------------------------------------------------------------------------------
FAIR
SHARES DESCRIPTION VALUE COST
- --------------------------------------------------------------------------------------------------------------------
MERRILL LYNCH CORPORATE BOND FUND
310,749 INVESTMENT GRADE A $ 3,635,764 $ 3,521,801
---------------------------------- ================= =================
64,194,962 MERRILL LYNCH RETIREMENT PRESERVATION TRUST $ 64,194,962 $ 64,194,962
------------------------------------------- ================= =================
121,724 MERRILL LYNCH GROWTH FUND A $ 2,626,807 $ 3,389,406
--------------------------- ================= =================
131,283 TEMPLETON FOREIGN FUND CLASS 1 $ 1,127,718 $ 1,411,014
------------------------------ ================= =================
82,933 AIM CONSTELLATION FUND A $ 2,134,696 $ 2,322,536
------------------------ ================= =================
PARTICIPANT LOANS
-----------------
PROMISSORY NOTES WITH VARIOUS DUE DATES
AND INTEREST RATES FROM 6.00% TO 12.00%: $ 11,157,826 $ 11,157,826
================= =================
18
SUPPLEMENTAL SCHEDULE 2
BERGEN BRUNSWIG PRE-TAX INVESTMENT RETIREMENT ACCOUNT
-----------------------------------------------------
LINE 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED SEPTEMBER 29, 1998
- --------------------------------------------------------------------------------------------------------------------
IDENTITY OF ISSUE TRADE TYPE NO. OF TRADES AMOUNT GAIN
- --------------------------------------------------------------------------------------------------------------------
FIDELITY MAGELLAN FUND Purchases 845 $16,132,452
Sales 723 12,639,170 $ 2,099,037
COMPANY STOCK FUND Purchases 589 10,289,059
Sales 327 14,567,585 4,526,321
MERRILL LYNCH RETIREMENT Purchases 1,082 26,454,974
PRESERVATION TRUST Sales 821 22,219,600 -
MERRILL LYNCH EQUITY Purchases 532 7,669,652
INDEX TRUST I Sales 387 4,409,124 628,608
19
SIGNATURE
---------
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Retirement Strategy Committee has duly caused this annual report to be
signed on its behalf by the undersigned hereunto duly authorized.
BERGEN BRUNSWIG PRE-TAX
INVESTMENT RETIREMENT ACCOUNT
by /s/ Neil F. Dimick
--------------------------------------
Neil F. Dimick
Executive Vice President,
Chief Financial Officer,
Bergen Brunswig Corporation
March 22, 1999
20