-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, dd1U2hnUg1Ke6lR/idLROKXv6dBYeCvAN+IiVsQS1ioem4jbsVCH5Uz9N46mykOH SiWcHR3G5ir2IrKrG6s9Sg== 0000950005-94-000043.txt : 19940706 0000950005-94-000043.hdr.sgml : 19940706 ACCESSION NUMBER: 0000950005-94-000043 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19931231 FILED AS OF DATE: 19940628 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WATKINS JOHNSON CO CENTRAL INDEX KEY: 0000105006 STANDARD INDUSTRIAL CLASSIFICATION: 3812 IRS NUMBER: 941402710 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05631 FILM NUMBER: 94536060 BUSINESS ADDRESS: STREET 1: 3333 HILLVIEW AVE CITY: PALO ALTO STATE: CA ZIP: 94304 BUSINESS PHONE: 4154934141 MAIL ADDRESS: STREET 1: 3333 HILLVIEW AVENUE CITY: PALO ALTO STATE: CA ZIP: 94304-1223 11-K 1 FORM 11-K 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 [FEE REQUIRED] For the fiscal year ended December 31, 1993 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] Commission file number 33-39962 A. Full title of the plan and the address of the plan, if different from that of the insurer named below: Watkins-Johnson Employees' Profit Sharing Investment Plan B. Name of insurer of the securities held pursuant to the plan and the address of its principal executive office: Watkins-Johnson Company 3333 Hillview Avenue Palo Alto, CA 94304 1. Financial Statements for the Watkins-Johnson Employees' Profit Sharing Investment Plan as of December 31, 1993 and 1992 and for the years then ended and supplemental schedule for the year ended December 31, 1993 are contained in Exhibit 1 of this Annual Report. 2. Consent of Deloitte and Touche independent auditors, is contained in Exhibit 2 of the Annual Report. This Annual Report consists of 18 sequentially numbered pages. 1 SIGNATURES The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. Watkins-Johnson Employees' Profit Sharing Investment Plan Date: June 22, 1994 /s/ Scott G. Buchanan -------------------------------- Scott G. Buchanan Vice President and Chief Financial Officer 2 EXHIBIT 1 FINANCIAL STATEMENTS Financial statements prepared by Deloitte & Touche, independent auditors, follows on pages 4 through 16. Exhibit 1 Form 11-K 3 WATKINS-JOHNSON EMPLOYEES' PROFIT SHARING INVESTMENT PLAN FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES For the Years Ended December 31, 1993 and 1992 and Independent Auditors' Report 4 WATKINS-JOHNSON EMPLOYEES' PROFIT SHARING INVESTMENT PLAN TABLE OF CONTENTS - - -------------------------------------------------------------------- Page ---- INDEPENDENT AUDITORS' REPORT 1 FINANCIAL STATEMENTS AS OF DECEMBER 31, 1993 AND 1992 AND FOR THE YEARS THEN ENDED: Statements of Net Assets 2-3 Statements of Changes in Net Assets 4-5 Notes to Financial Statements 6-8 SUPPLEMENTAL SCHEDULES AS OF DECEMBER 31, 1993 AND FOR THE YEAR THEN ENDED: Schedule 1--Assets Held For Investment Purposes 9 Schedule 2--Reportable Transactions 10-11 5 INDEPENDENT AUDITORS' REPORT The Administrative Committee, Watkins-Johnson Employees' Profit Sharing Investment Plan: We have audited the accompanying statements of net assets of Watkins-Johnson Employees' Profit Sharing Investment Plan (the "Plan") as of December 31, 1993 and 1992, and the related statements of changes in net assets for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally 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 of the Plan at December 31, 1993 and 1992, and the changes in its net assets for the years then ended in conformity with generally accepted accounting principles. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplemental schedules, listed in the foregoing table of contents, are presented for the purpose of complying with the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. Theses supplemental schedules are the responsibility of the Plan's management. Such supplemental schedules have been subjected to the auditing procedures applied in our audit 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. As discussed in Note 4 to the financial statements, the Plan changed its method of accounting for distributions to participants in 1992. Deloitte & Touche May 31, 1994 6 WATKINS-JOHNSON EMPLOYEES' PROFIT SHARING INVESTMENT PLAN STATEMENT OF NET ASSETS, DECEMBER 31, 1993
Retirement Watkins- Government Fixed Income Magellan OTC Balanced Johnson Stock Total Money Market Fund Fund Portfolio Fund Fund -------- ------------ ------------ -------- --------- -------- ------------- Assets: Cash and cash $105,079 - - - - - $105,079 equivalents Deposit contracts 50,241,350 - $50,241,350 - - - - ---------- ---------- ----------- ----------- ---------- ----------- ----------- Total 50,346,429 - 50,241,350 - - - 105,079 ---------- ---------- ----------- ----------- ---------- ----------- ----------- Investments (at fair value): Fidelity mutual funds 46,606,070 $2,440,515 934,526 $19,780,727 $5,788,756 $17,661,546 - Corporate stocks 1,403,035 - - - - - 1,403,035 ---------- ---------- ----------- ----------- ---------- ----------- ----------- Total 48,009,105 2,440,515 934,526 19,780,727 5,788,756 17,661,546 1,403,035 ---------- ---------- ----------- ----------- ---------- ----------- ----------- Receivables: Employer 1,901,024 (31,900) 484,367 600,882 257,457 531,952 58,266 contributions Interest and dividends 8,324 - - - - - 8,324 ---------- ---------- ----------- ----------- ---------- ----------- ----------- Total 1,909,348 (31,900) 484,367 600,882 257,457 531,952 66,590 ---------- ---------- ----------- ----------- ---------- ----------- ----------- Total Assets 100,264,882 2,408,615 51,660,243 20,381,609 6,046,213 18,193,498 1,574,704 ---------- ---------- ----------- ----------- ---------- ----------- ----------- Liabilities: Expenses payable 7,690 186 3,670 1,714 494 1,490 136 Purchase of securities 30,240 - - - - - 30,240 ---------- ---------- ----------- ----------- ---------- ----------- ----------- Total Liabilities 37,930 186 3,670 1,714 494 1,490 30,376 ---------- ---------- ----------- ----------- ---------- ----------- ----------- Net Assets $100,226,952 $2,408,429 $51,656,573 $20,379,895 $6,045,719 $18,192,008 $1,544,328 ---------- ---------- ----------- ----------- ---------- ----------- ----------- ---------- ---------- ----------- ----------- ---------- ----------- -----------
See notes to financial statements. 7 WATKINS-JOHNSON EMPLOYEES' PROFIT SHARING INVESTMENT PLAN STATEMENT OF NET ASSETS, DECEMBER 31, 1992
U.S. Securities Fixed Income Watkins-Johnson Total Fund Fund General Fund Stock Fund ----------- -------------- ----------- ------------ -------------- Assets: Cash and cash equivalents $33,477,666 $2,472,042 $1,490,251 $29,452,111 $63,262 Deposit contracts 51,825,852 - 51,825,852 - - ----------- ---------- ---------- ----------- -------- Total 85,303,518 2,472,042 53,316,103 29,452,111 63,262 ----------- ---------- ---------- ----------- -------- Investments (at market): Corporate debt securities 79,871 - - 79,871 - Corporate stocks 880,968 - - 130,650 750,318 ----------- ---------- ---------- ----------- -------- Total 960,839 - - 210,521 750,318 ----------- ---------- ---------- ----------- -------- Receivables: Employer contributions 906,415 24,135 531,171 342,814 8,295 Employee contributions 86,841 3,018 52,055 30,617 1,151 Interest and dividends 446,867 6,090 374,034 60,287 6,456 ----------- ---------- ---------- ----------- -------- Total 1,440,123 33,243 957,260 433,718 15,902 ----------- ---------- ---------- ----------- -------- Total Assets 87,704,480 2,505,285 54,273,363 30,096,350 829,482 ----------- ---------- ---------- ----------- -------- Liabilities: Expenses payable 46,176 775 4,363 40,873 165 ----------- ---------- ---------- ----------- -------- Total Liabilities 46,176 775 4,363 40,873 165 ----------- ---------- ---------- ----------- -------- Net Assets $87,658,304 $2,504,510 $54,269,000 $30,055,477 $829,317 ----------- ---------- ---------- ----------- -------- ----------- ---------- ---------- ----------- --------
See notes to financial statements. 8 WATKINS-JOHNSON EMPLOYEES' PROFIT SHARING INVESTMENT PLAN STATEMENT OF CHANGES IN NET ASSETS, YEAR ENDED DECEMBER 31, 1993
Fidelity -------------------------------------------------------------------------------- Retirement Government Fixed Money Income Magellan OTC Balanced Total Market Fund Fund Portfolio Fund ---------- --------- ---------- ---------- --------- ---------- Change in Investment Options - 2,504,510 53,455,154 14,112,561 5,107,390 10,810,726 ---------- --------- ---------- ---------- --------- ---------- Investment Earnings: Interest $4,577,173 6,654 4,568,386 2,133 - - Dividends 4,009,329 68,740 - 1,754,276 740,848 1,415,095 ---------- --------- ---------- ---------- --------- ---------- Total 8,586,502 75,394 4,568,386 1,756,409 740,848 1,415,095 ---------- --------- ---------- ---------- --------- ---------- Net appreciation (depreciation) in fair value of investments 2,343,744 - - 1,615,530 (277,450) 767,878 Trustee fees (54,038) (772) (15,400) (17,313) (5,865) (14,160) ---------- --------- ---------- ---------- --------- ---------- Total 2,289,706 (772) (15,400) 1,598,217 (283,315) 753,718 ---------- --------- ---------- ---------- --------- ---------- Total investments earnings 10,876,208 74,622 4,552,986 3,354,626 457,533 2,168,813 ---------- --------- ---------- ---------- --------- ---------- Contributions: Employer 1,901,024 (31,900) 484,367 600,882 257,457 531,952 Employee 5,892,002 143,284 1,531,381 1,671,386 812,594 1,590,046 ---------- --------- ---------- ---------- --------- ---------- Total 7,793,026 111,384 2,015,748 2,272,268 1,070,051 2,121,998 ---------- --------- ---------- ---------- --------- ---------- Total investment earnings and contributions 18,669,234 186,006 6,568,734 5,626,894 1,527,584 4,290,811 ---------- --------- ---------- ---------- --------- ---------- Transfers between funds - (81,012) (5,125,004) 1,472,331 (314,741) 3,694,411 Distributions to participants (6,100,586) (201,075) (3,242,311) (831,891) (274,514) (603,940) ---------- --------- ---------- ---------- --------- ---------- Increase (decrease) in net assets 12,568,648 2,408,429 51,656,573 20,379,895 6,045,719 18,192,008 ---------- --------- ---------- ---------- --------- ---------- Net assets, January 1 87,658,304 - - - - - ---------- --------- ---------- ---------- --------- ---------- Net assets, December 31 $100,226,952 $2,408,429 $51,656,573 $20,379,895 $6,045,719 $18,192,008 ---------- --------- ---------- ---------- --------- ---------- ---------- --------- ---------- ---------- --------- ---------- (Continuation of table) ---------------------------------------------------------------- Watkins- Johnson U.S. Fixed Stock Securities Income General Fund Fund Fund Fund -------- ---------- ----------- ------------ Change in Investment Options - (2,504,510) (53,455,154) (30,030,677) -------- ---------- ----------- ----------- Investment Earnings: Interest - - - - Dividends 30,370 - - - -------- ---------- ----------- ----------- Total 30,370 - - - -------- ---------- ----------- ----------- Net appreciation (depreciation) in fair value of investments 237,786 - - - Trustee fees (528) - - - -------- ---------- ----------- ----------- Total 237,258 - - - -------- ---------- ----------- ----------- Total investments earnings 267,628 - - - -------- ---------- ----------- ----------- Contributions: Employer 58,266 - - - Employee 143,311 - - - -------- ---------- ----------- ----------- Total 201,577 - - - -------- ---------- ----------- ----------- Total investment earnings and contributions 469,205 - - - -------- ---------- ----------- ----------- Transfers between funds 354,015 - - - Distributions to participants (108,209) - (813,846) (24,800) -------- ---------- ----------- ----------- Increase (decrease) in net assets 715,011 (2,504,510) (54,269,000) (30,055,477) -------- ---------- ----------- ----------- Net assets, January 1 829,317 2,504,510 54,269,000 30,055,477 -------- ---------- ----------- ----------- Net assets, December 31 $1,544,328 - - - -------- ---------- ----------- -----------
See notes to financial statements. 9 WATKINS-JOHNSON EMPLOYEES' PROFIT SHARING INVESTMENT PLAN STATEMENT OF CHANGE IN NET ASSETS, YEAR ENDED DECEMBER 31, 1992
U.S. Securities Fixed Income Watkins-Johnson Total Fund Fund General Fund Stock Fund --------- -------------- ------------ ------------ --------------- Investment Earnings: Interest $4,915,737 $113,397 $4,377,780 $422,091 $2,469 Dividends 410,235 - - 387,377 22,858 ---------- -------- ---------- ---------- -------- Total 5,325,972 113,397 4,377,780 809,468 25,327 ---------- -------- ---------- ---------- -------- Net appreciation (depreciation) in fair 1,201,702 - - 1,021,367 180,335 value of investments Trustee and investment fees (382,517) (3,998) (38,285) (339,680) (554) ---------- -------- ---------- ---------- -------- Total 819,185 (3,998) (38,285) 681,687 179,781 Total investment earnings 6,145,157 109,399 4,339,495 1,491,155 205,108 Contributions: Employer 906,415 24,135 531,171 342,814 8,295 Employee 4,573,180 121,771 2,679,941 1,729,616 41,852 ---------- -------- ---------- ---------- -------- Total contributions 5,479,595 145,906 3,211,112 2,072,430 50,147 ---------- -------- ---------- ---------- -------- Total investment earnings and contributions 11,624,752 255,305 7,550,607 3,563,585 255,255 ---------- -------- ---------- ---------- -------- Transfers between funds 0 (1,361,981) 1,350,404 (60,130) 71,707 Distributions to participants (8,798,727) (284,732) (5,699,771) (2,777,077) (37,147) ---------- -------- ---------- ---------- -------- Increase (decrease) in net assets 2,826,025 (1,391,408) 3,201,240 726,378 289,815 Net assets, January 1 83,327,903 3,826,921 49,955,447 29,006,719 538,816 Change in accounting for distributions 1,504,376 68,997 1,112,313 322,380 686 (Note 4) ---------- -------- ---------- ---------- -------- Net assets, December 31 $87,658,304 $2,504,510 $54,269,000 $30,055,477 $829,317 ---------- -------- ---------- ---------- -------- ---------- -------- ---------- ---------- --------
See notes to financial statements. 10 WATKINS-JOHNSON COMPANY EMPLOYEES' PROFIT SHARING INVESTMENT PLAN NOTES TO FINANCIAL STATEMENTS 1. DESCRIPTION OF PLAN The Watkins-Johnson Employees' Profit Sharing Investment Plan (the Plan) was created by Watkins-Johnson Company effective January 1, 1967. The Plan, amended as of January 1, 1991, conforms to the requirements of the Employee Retirement Income Security Act of 1974 (ERISA), and is in compliance with the Tax Reform Act of 1986. The Plan provides for Company contributions based on profits and voluntary contributions by employees. In addition, on April 1, 1983, Watkins-Johnson Company established the Salary Deferral Plan, known as a 401(k) Plan in reference to the Internal Revenue Code Section 401(k). Employees of Watkins-Johnson Company on a U.S. payroll are generally eligible to participate upon one year of service. Participant contributions are fully vested. Company contributions generally begin to vest after three years of employee service and become fully vested after seven years of service or upon retirement, death or permanent disability. In the event of Plan termination, the value of participants' accounts would immediately vest 100%. The Fidelity Retirement Government Money Market Portfolio invests in obligations issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities, and in repurchase agreements secured by these obligations. The Fixed Income Fund principally consists of the following deposits for unsecured contracts with a fixed interest rate: 1993 1992 ----------- ----------- Bankers Trust Company,interest at 8.48%, matures in June 1995 $13,440,245 $12,857,378 Commonwealth Life Insurance Company, interest at 7.44%, matures in June 1993 - 4,121,343 Continental Assurance Company, interest at 7.72%, matures in June 1994 4,406,787 4,246,593 Life Insurance Company of Virginia, interest at 9.70%, matures in June 1993 - 4,476,629 Life Insurance Company of Virginia, Interest at 9.43%, matures in June 1994 4,487,895 4,251,457 Metropolitan Life Insurance Company, interest at 9.59%, matures in June 1994 10,944,467 11,402,210 New York Life Insurance Company, interest at 9.05%, matures in June 1993 - 4,038,219 11 1993 1992 --------- --------- Continental Assurance Company, interest at 4.90%, 50%, matures in December 1995 50% matures in June 1997 4,086,907 - Protective Life Insurance Company, interest at 8.46%, matures in June 1995 6,724,371 6,432,023 Provident Life and Accident Insurance Company,interest at 5.10%, 50%, matures in July 1996 50% matures in June 1997 6,150,678 - ----------- ---------- Total deposit contracts 50,241,350 51,825,852 Fidelity Fixed Income Fund 934,526 - ----------- ---------- Total Fixed Income Fund $51,175,876 $51,825,852 ----------- ---------- ----------- ---------- The Fidelity Magellan Fund is a growth fund and invests in stock of both well-known and lesser-known foreign and domestic companies with above- average growth potential. The Fidelity OTC Portfolio is a growth fund and invests primarily in securities traded on the over-the-counter securities market including common stocks, preferred stocks, securities convertible into common stocks and debt securities. The Fidelity Balanced Fund is a growth and income fund and invests in investment grade or higher bonds and other high-yielding securities, including common and preferred stocks. The Watkins-Johnson Stock Fund invests primarily in Watkins-Johnson Company's common stock. The U.S. Securities Fund invested in U.S. Government obligations, primarily treasury bills. The General Trust Fund invested primarily in corporate stocks and debt securities. The Plan, as amended, allows all participants to direct future contributions to the funds of their choice daily. The Plan obtained its latest determination letter in December 1985, 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, they believe that the Plan was qualified and was tax-exempt as of December 31, 1993. 12 2. SIGNIFICANT ACCOUNTING POLICIES Cash and cash equivalents are highly liquid investments with a maturity of ------------------------- three months or less. Deposit contracts are stated at cost plus accumulated interest. ----------------- Investments are stated at fair value based on quoted market prices; the ----------- unrealized difference between cost and market is included in determining Plan net assets. Dividend and interest income are recorded on the accrual basis. --------------------- Administrative expenses incurred on behalf of the Plan are paid by Watkins- ----------------------- Johnson Company except for trustee fees which are paid by the Plan. Such fees are recorded on the accrual basis. Contributions are allocated to individual, eligible participants in the ------------- ratio that each such participant's regular compensation bears to the aggregate of such regular compensation for all eligible Plan participants for the Plan year. Forfeitures are allocated to individual active participants in the ratio ----------- that each such participant's regular compensation bears to the aggregate of such regular compensation for all eligible Plan participants for the Plan year. Total forfeitures were $92,266 and $323,588 for 1993 and 1992, respectively. 3. CHANGE IN INVESTMENT OPTIONS In January 1993, the Plan changed administrator and recordkeeper to Fidelity Investments ("Fidelity") from First Interstate Bank. As a result of this change, certain investment options were also changed to allow for investing in Fidelity mutual funds. 4. CHANGE IN ACCOUNTING In 1992, the Plan changed its method of accounting for distributions to participants from the accrual basis to the cash basis in accordance with new guidance contained in the May 1, 1993 Audit Guide for Employee Benefit Plans published by the American Institute of Certified Public Accountants. The effect of this accounting change was an increase in net assets as of January 1, 1992 of $1,504,376. This accounting change also results in differences between net assets of the Plan's financial statements and the Plan's Form 5500 as filed with the Internal Revenue Service by the amount of distributions due to participants of $278,159 as of December 31, 1993. 13 WATKINS-JOHNSON COMPANY Schedule 1 PROFIT SHARING INVESTMENT PLAN ITEM 27a--SUPPLEMENTAL SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AS OF DECEMBER 31, 1993
Identity of Issue Description of Investment Cost Fair Value - - ----------------------------- ------------------------- ---------- ----------- Fidelity Management Trust Co. Retirement Government $2,440,515 $2,440,515 Money Market Bankers Trust Company Fixed Income Fund (Deposit 13,440,245 13,440,245 Contracts) Continental Assurance Company Fixed Income Fund (Deposit 4,406,787 4,406,787 Contracts) Life Insurance Company of Fixed Income Fund (Deposit 4,487,895 4,487,895 Virginia Contracts) Metropolitan Life Insurance Fixed Income Fund (Deposit 10,944,467 10,944,467 Company Contracts) Continental Assurance Company Fixed Income Fund (Deposit 4,086,907 4,086,907 Contracts) Protective Life Insurance Fixed Income Fund (Deposit 6,724,371 6,724,371 Company Contracts) Provident Life and Accident Fixed Income Fund (Deposit 6,150,678 6,150,678 Insurance Company Contracts) Fidelity Management Trust Co. Fixed Income Fund 934,526 934,526 Fidelity Management Trust Co. Magellan Fund 18,165,197 19,780,727 Fidelity Management Trust Co. OTC Portfolio 6,066,206 5,788,756 Fidelity Management Trust Co. Balanced Fund 16,893,668 17,661,546 Fidelity Management Trust Co. U.S. Government Reserve 105,079 105,079 Pool Watkins-Johnson Company Common Stock 1,165,249 1,403,035 ----------- ----------- Total Investments $96,011,790 $98,355,534 ----------- ----------- ----------- -----------
(1) See Note 1 to the financial statements. 14 WATKINS-JOHNSON COMPANY Schedule 2 PROFIT SHARING INVESTMENT PLAN ITEM 27d-- SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1993 (One or a Series of Transactions Exceeding 5% of the Fair Value of the Plan Assets at the Beginning of the Year)
Fair Value of Asset on Identity of Party Purchase Selling Cost of Transaction Net Gain Involved Description of Asset Price Price Asset Date or (Loss) - - ------------------------ ------------------------- --------- ------------ --------- ---------- --------- Single Transactions: (1) Pacific American Fund Master Notes - $10,761,435 $10,761,4 $10,761,435 * 35 First Interstate Bank Short-Term Investment Fund - 22,716,231 22,716,23 22,716,231 * 1 Life Insurance Company Fixed Income Fund (Deposit - 4,521,044 4,521,044 4,521,004 * of Virginia Contract) Provident Life and Fixed Income Fund (Deposit $6,000,000 - 6,000,000 6,000,000 - Accident Insurance Co. Contract) (1) No expenses were incurred with any reportable transaction. *For each transaction, fair value was equal to cost.
15 WATKINS-JOHNSON COMPANY Schedule 2 (continued) PROFIT SHARING INVESTMENT PLAN ITEM 27d-- SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1993 (One or a Series of Transactions Exceeding 5% of the Fair Value of the Plan Assets at the Beginning of the Year)
Fair Value of Asset on Identity of Party Purchase Selling Cost of Transaction Net Gain Involved Description of Asset Price Price Asset Date or (Loss) - - ------------------------ ------------------------- --------- ------------ --------- ---------- --------- Series of Transactions: (1) Various (2) Fixed Income Fund $6,637,112 - $6,637,112 $6,637,112 - (Deposit Contracts) (112 Transactions) Fidelity Management Magellan Fund 8,387,247 - 8,387,247 8,387,247 - Trust Company (161 Transactions) Fidelity Management Balanced Fund 8,438,392 - 8,438,392 8,438,392 - Trust Company (152 Transactions) Various (2) Fixed Income Fund - $8,020,687 - 8,020,687 * (Deposit Contracts) (70 Transactions) (1) No expenses were incurred with any reportable transaction. (2) See Note 1 to the financial statements. *For each transaction, fair value was equal to cost.
16 EXHIBIT 2 INDEPENDENT AUDITORS' REPORT The consent of Deloitte & Touche, independent auditors, follows on page 18. Exhibit 2 Form 11-K 17 INDEPENDENT AUDITORS' CONSENT We consent to the incorporation by reference in Registration Statement No. 33-39962 of the Watkins-Johnson Employees' Profit Sharing Investment Plan (the Plan) on Form S-8 of our report dated May 31, 1994, appearing in this Annual Report on Form 11-K of the Plan for the year ended December 31, 1993. Deloitte & Touche June 22, 1994 18 -----END PRIVACY-ENHANCED MESSAGE-----