-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EfwWdoTOPU0VLpQLhe5tzcQTmISwM10H9buVIAH5WU8iUYTDWoe45BHlL/9j5iil lWv+RL/xrsdvOejZyDbBWQ== 0001047469-98-025770.txt : 19980630 0001047469-98-025770.hdr.sgml : 19980630 ACCESSION NUMBER: 0001047469-98-025770 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980629 SROS: NYSE SROS: PCX FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTERNATIONAL RECTIFIER CORP /DE/ CENTRAL INDEX KEY: 0000316793 STANDARD INDUSTRIAL CLASSIFICATION: SEMICONDUCTORS & RELATED DEVICES [3674] IRS NUMBER: 951528961 STATE OF INCORPORATION: DE FISCAL YEAR END: 0629 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 001-07935 FILM NUMBER: 98656534 BUSINESS ADDRESS: STREET 1: 233 KANSAS ST CITY: EL SEGUNDO STATE: CA ZIP: 90245 BUSINESS PHONE: 3103223331 11-K 1 11-K SECURITY 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, 1997 ------------------------------------------------- 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 ______________ A. Full title of the plan and address of the plan, if different from that of the issuer named below: INTERNATIONAL RECTIFIER CORPORATION RETIREMENT SAVINGS PLAN B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: INTERNATIONAL RECTIFIER CORPORATION 233 KANSAS STREET EL SEGUNDO, CALIFORNIA 90245 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. INTERNATIONAL RECTIFIER CORPORATION RETIREMENT SAVINGS PLAN /s/ Michael P. McGee -------------------- Michael P. McGee Member of Administrative Committee INTERNATIONAL RECTIFIER CORPORATION RETIREMENT SAVINGS PLAN __________ INDEX OF FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES Pages ----- Report Of Independent Public Accountants 1 Statement Of Net Assets Available For Benefits With Fund Information As Of December 31, 1997 2 Statement Of Net Assets Available For Benefits With Fund Information As Of December 31, 1996 3 Statement Of Changes In Net Assets Available For Benefits With Fund Information For The Year Ended December 31, 1997 4 Notes To Financial Statements 5-14 Supplemental Schedules: Line 27a - Schedule Of Assets Held For Investment Purposes As Of December 31, 1997 15 Line 27d - Schedule Of Reportable Transactions For The Year Ended December 31, 1997 16 Exhibit: (23.1) Consent Of Independent Accountants REPORT OF INDEPENDENT ACCOUNTANTS __________ To The Plan Administrator International Rectifier Corporation We have audited the accompanying statements of net assets available for benefits of International Rectifier Corporation Retirement Savings Plan (the "Plan") as of December 31, 1997 and 1996, and the related statement of changes in net assets available for benefits for the year ended December 31, 1997. 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 audits to obtain reasonable assurance about whether the financial statements are free of material misstatements. 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, 1997 and 1996, and the changes in net assets available for benefits for the year ended December 31, 1997, 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, Line 27a - Schedule of Assets Held for Investment Purposes and Line 27d - Schedule of Reportable Transactions, 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 net assets available for benefits and the statement of changes in net assets available for benefits is presented for purposes of additional analysis rather than to present the net assets available for benefits and 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. /s/ Coopers & Lybrand L.L.P. Coopers & Lybrand L.L.P. Newport Beach, California June 26, 1998 1 INTERNATIONAL RECTIFIER CORPORATION RETIREMENT SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION AS OF DECEMBER 31, 1997 __________
Fund Information ------------------------------------------------------------------------------------------- Interest- Bearing Growth Intermediate Low-Priced Cash IR Stock Company Bond Value Stock Fund Unit Fund Fund Fund Fund Fund --------- --------- ------- ------------ ----- ---------- Investments at fair value $3,881,680 $7,723,237 $3,211,509 $9,746,500 $513,457 ---------- ---------- ---------- ---------- -------- Total investments 3,881,680 7,723,237 3,211,509 9,746,500 513,457 ---------- ---------- ---------- ---------- -------- Receivables: Employer contributions $210,969 Employee contributions 209,816 -------- ---------- ---------- ---------- ---------- -------- Total receivables 420,785 -------- ---------- ---------- ---------- ---------- -------- Net assets available for benefits $420,785 $3,881,680 $7,723,237 $3,211,509 $9,746,500 $513,457 -------- ---------- ---------- ---------- ---------- -------- -------- ---------- ---------- ---------- ---------- --------
Retired Spartan Government U.S. Diversified Money Managed Equity Participant International Market Income Index Loan Fund Fund Portfolio Fund Fund Total ------------- ---------- --------- ------- ----------- ----- Investments at fair value $325,010 $4,009,676 $4,386,183 $996,401 $2,219,460 $37,013,113 -------- ---------- ---------- -------- ---------- ----------- Total investments $325,010 $4,009,676 $4,386,183 $996,401 $2,219,460 $37,013,113 -------- ---------- ---------- -------- ---------- ----------- Receivables: Employer contributions 210,969 Employee contributions 209,816 -------- ---------- ---------- -------- ---------- ----------- Total receivables 420,785 -------- ---------- ---------- -------- ---------- ----------- Net assets available for benefits $325,010 $4,009,676 $4,386,183 $996,401 $2,219,460 $37,433,898 -------- ---------- ---------- -------- ---------- ----------- -------- ---------- ---------- -------- ---------- ----------- The accompanying notes are an integral part of these financial statements. INTERNATIONAL RECTIFIER CORPORATION RETIREMENT SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION AS OF DECEMBER 31, 1996 __________ Fund Information ------------------------------------------------------- FDIC Stable Cash Pooled Value Intermediate Clearing Savings Income Term Bond Fund Fund Fund Fund -------- ------- ------ ------------ Investments at fair value $3,904,470 $3,900,636 $2,827,285 ---------- ---------- ---------- Total investments 3,904,470 3,900,636 2,827,285 ---------- ---------- ---------- Receivables: Employer contributions $229,061 Employee contributions 192,286 -------- ---------- ---------- ---------- Total receivables 421,347 -------- ---------- ---------- ---------- Cash 329 -------- ---------- ---------- ---------- Net assets available for benefits $421,676 $3,904,470 $3,900,636 $2,827,285 -------- ---------- ---------- ---------- -------- ---------- ---------- ---------- Value Growth Momentum Equity Company Participant Equity Fund Fund Stock Fund Loan Fund Total ----------- ------ ---------- ----------- ----- Investments at fair value $7,404,427 $5,622,563 $3,697,416 $1,689,274 $29,046,071 ---------- ---------- ---------- ---------- ----------- Total investments 7,404,427 5,622,563 3,697,416 1,689,274 29,046,071 ---------- ---------- ---------- ---------- ----------- Receivables: Employer contributions 229,061 Employee contributions 192,286 ---------- ---------- ---------- ---------- ----------- Total receivables 421,347 ---------- ---------- ---------- ---------- ----------- Cash 329 ---------- ---------- ---------- ---------- ----------- Net assets available for benefits $7,404,427 $5,622,563 $3,697,416 $1,689,274 $29,467,747 ---------- ---------- ---------- ---------- ----------- ---------- ---------- ---------- ---------- -----------
The accompanying notes are an integral part of these financial statements. INTERNATIONAL RECTIFIER CORPORATION RETIREMENT SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1997
Fund Information -------------------------------------------------------------------------- FDIC Stable Cash Pooled Value Intermediate Value Clearing Savings Income Term Momentum Fund Fund Fund Bond Fund Equity Fund ---- ---- ---- --------- ----------- Additions: Contributions: Employer Employee Total contributions Dividend income Interest income $10 $40 $69 $9 Net appreciation (depreciation) in investments Loan repayments -- -- -- -- Total additions 10 40 69 9 -- -- -- -- Deductions: Benefits paid to participants Administrative fee Loan advances -- -- -- -- Total deductions -- -- -- -- Net increase (decrease) prior to interfund 10 40 69 9 transfers Transfers ($ 421,676) (3,904,480) (3,900,676) (2,827,354) (7,404,436) Balances at December 31, 1996 421,676 3,904,470 3,900,636 2,827,285 7,404,427 ------- --------- --------- --------- --------- Balances at December 31, 1997 $ - $ - $ - $ - $ - -------- --------- ---------- ---------- --------- -------- --------- ---------- ---------- ---------
Interest- Bearing Growth Growth Company Cash IR Stock Company Equity Fund Stock Fund Fund Unit Fund Fund ----------- ---------- ---- --------- ---- Additions: Contributions: Employer ($ 18,092) $ 189,587 $ 278,692 Employee 17,201 660,963 1,268,292 ------ ------- --------- Total contributions (891) 850,550 1,546,984 --- ------- --------- Dividend income 733,904 Interest income $43 $4 199 10 Net appreciation (depreciation) in investments (795,198) 490,145 Loan repayments 114,269 151,776 -- -- -- ------- ------- Total additions 43 4 (891) 169,820 2,922,819 -- - --- ------- --------- Deductions: Benefits paid to participants (175,034) (285,998) Administrative fee (3,815) (1,968) Loan advances (118,819) (207,438) -- -- -- ------- ------- Total deductions (297,668) (495,404) -- -- -- ------- ------- Net increase (decrease) prior to interfund 43 4 (891) (127,848) 2,427,415 transfers Transfers (5,622,606) (3,697,420) 421,676 4,009,528 5,295,822 Balances at December 31, 1996 5,622,563 3,697,416 --------- --------- --------- ---------- ----------- Balances at December 31, 1997 $ - $ - $ 420,785 $3,881,680 $ 7,723,237 --------- --------- --------- ---------- ----------- --------- --------- --------- ---------- -----------
Retired Government Intermediate Low-Priced Diversified Money Bond Value Stock International Market Fund Fund Fund Fund Portfolio ---- ---- ---- ---- --------- Additions: Contributions: Employer $ 124,506 $ 271,617 $ 8,107 $ 5,008 $ 219,547 Employee 450,769 1,138,903 86,929 74,541 657,343 -------- --------- ------ ------ ------- Total contributions 575,275 1,410,520 95,036 79,549 876,890 -------- --------- ------ ------ ------- Dividend income 194,677 1,334,693 30,925 11,402 210,449 Interest income 7 12 9,188 Net appreciation (depreciation) in investments 40,126 389,287 30,085 2,604 101 Loan repayments 83,963 183,318 10,233 11,166 123,758 -------- --------- ------- ------- -------- Total additions 894,048 3,317,830 166,279 104,721 1,220,386 -------- --------- ------- ------- -------- Deductions: Benefits paid to participants (134,058) (300,507) (8,089) (3,118) (330,359) Administrative fee (563) (473) (610) (50) (1,113) Loan advances (131,748) (330,456) (7,027) (14,485) (311,786) -------- --------- ------- ------- -------- Total deductions (266,369) (631,436) (15,726) (17,653) (643,258) -------- --------- ------- ------- -------- Net increase (decrease) prior to interfund 627,679 2,686,394 150,553 87,068 577,128 transfers Transfers 2,583,830 7,060,106 362,904 237,942 3,432,548 Balances at December 31, 1996 -------- --------- ------- ------- -------- Balances at December 31, 1997 $ 3,211,509 $ 9,746,500 $ 513,457 $ 325,010 $ 4,009,676 -------- --------- ------- ------- -------- -------- --------- ------- ------- -------- Spartan U.S. Managed Equity Income Index Participant Portfolio Fund Loan Fund Total --------- ---- --------- ----- Additions: Contributions: Employer $ 144,948 $ 11,137 $ 1,235,057 Employee 514,135 121,254 4,990,330 ------- ------- ---------- Total contributions 659,083 132,391 6,225,387 ------- ------- ---------- Dividend income 246,907 15,541 2,778,498 Interest income 15,848 $ 149,665 175,104 Net appreciation (depreciation) in investments (24) 114,485 271,611 Loan repayments 133,935 10,791 (823,209) --------- ------- -------- ---------- Total additions 1,055,749 273,208 (673,544) 9,450,600 --------- ------- -------- ---------- Deductions: Benefits paid to participants (167,895) (8,709) (61,935) (1,475,702) Administrative fee (155) (8,747) Loan advances (137,741) (6,165) 1,265,665 --------- ------- --------- ---------- Total deductions (305,791) (14,874) 1,203,730 (1,484,449) --------- ------- --------- ---------- Net increase (decrease) prior to interfund 749,958 258,334 530,186 7,966,151 transfers Transfers 3,636,225 738,067 Balances at December 31, 1996 1,689,274 29,467,747 --------- ------- --------- ---------- Balances at December 31, 1997 $ 4,386,183 $ 996,401 $ 2,219,460 $37,433,898 --------- ------- --------- ---------- --------- ------- --------- ----------
The accompanying notes are an integral part of the financial statements. INTERNATIONAL RECTIFIER CORPORATION RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS __________ 1. Description Of The Plan: The following description of the International Rectifier Corporation Retirement Savings Plan (the "Plan") provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan's provisions. GENERAL International Rectifier Corporation (the "Company") established the Plan on April 1, 1988. The Plan is a defined contribution plan subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"), as amended. Participation in the Plan is available to all full-time employees as of the first day of the calendar quarter after date of hire. ELIGIBILITY An eligible employee is any person who is a full-time employee in the United States working at least one thousand hours per year. CONTRIBUTIONS Participants may elect to make contributions up to 20% of their pretax annual compensation, as defined in the Plan. Participants may also contribute amounts representing distributions from other qualified defined benefit or contribution plans. The Company contributes an amount equal to 150% of the first $200 of the participant's contribution, 50% of the next $1,400, and 25% of the next $800 in a Plan year. The aggregate matching contribution made by the Company shall not exceed $1,200 per participant in a Plan year. In addition to the Company's matching contribution, the Board of Directors may make annual discretionary contributions in the form of cash or Company stock. For the year ended December 31, 1997, no discretionary matching contributions were authorized by the Board. VESTING Participants are immediately vested in their contributions and the Company's matching and discretionary contributions plus actual earnings thereon. 5 INTERNATIONAL RECTIFIER CORPORATION RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS, CONTINUED __________ 1. Description Of The Plan, Continued: PARTICIPANT ACCOUNTS Each participant's account is credited with (a) the participant's contribution and allocations of (b) the Company's contribution and (c) Plan earnings. Allocations are based on participant contributions or account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant's vested account. INVESTMENT PROGRAMS The trustee for the Plan as of and for the year ended December 31, 1997 is Fidelity Management Trust Company. As of and for the year ended December 31, 1996, the trustee for the Plan was Union Bank. All accounts are held in trust funds and invested in accordance with the terms of the Plan and investment options elected by Plan participants. A brief description of these funds is as follows: FDIC POOLED SAVINGS FUND - consists of passbook savings accounts and certificates of deposit at banks and savings and loan associations. The investments are federally insured. STABLE VALUE INCOME FUND - primarily invests in Guaranteed Investment Contracts ("GICs") issued by select insurance companies which guarantee the interest and payment at maturity with the full resources of the issuing insurance company. This fund also invests in money market funds or money market instruments with monies awaiting more permanent investments. The GICs have both fixed and floating rates and as a result, produce an overall blended rate of return in addition to credit diversification and liquidity. INTERMEDIATE TERM BOND FUND - is designed to provide a high total return with minimal maturity and interest rate risk. The fund consists of U.S. Treasury and mortgage securities, as well as investment grade corporate bonds with short and intermediate maturities. VALUE MOMENTUM EQUITY FUND - seeks to provide long-term growth of capital with below market volatility by investing in equity securities of undervalued companies experiencing positive price and earnings momentum. 6 INTERNATIONAL RECTIFIER CORPORATION RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS, CONTINUED __________ 1. Description Of The Plan, Continued: INVESTMENT PROGRAMS, CONTINUED GROWTH EQUITY FUND - seeks to provide long-term growth and increased future income through investments in equity securities of well established growth companies with demonstrated growth in earnings. The Growth Equity Fund allows for potentially higher rates of return than the Value Momentum Equity Fund, however, with increased associated risk. COMPANY STOCK FUND - is invested solely in International Rectifier Corporation Common Stock. The objective of this fund is to permit employees to participate in the ownership of the Company. Any amounts to be invested in Company stock are first invested in an interest-bearing money market account, until the Company stock is purchased. CASH CLEARING FUND - temporarily holds cash from the time an investment in one fund is liquidated and a purchase in another fund is settled. RETIREMENT GOVERNMENT MONEY MARKET PORTFOLIO - An income fund with investments in high quality short-term money market securities for which the U.S. government or its agencies or instrumentalities guarantees timely payment of principal and interest. MANAGED INCOME PORTFOLIO - A stable value fund with investments in contracts offered by major insurance companies and other approved financial institutions and short-term instruments. INTERMEDIATE BOND FUND - An income fund with investments in all types of U.S. and foreign bonds, including corporate or U.S. government issues. VALUE FUND - A growth fund with investments primarily in stocks of companies that possess valuable assets or that the manager feels are undervalued. GROWTH COMPANY FUND - A growth fund with investments primarily in stocks of companies with earnings or gross sales that indicate the potential for above average growth. 7 INTERNATIONAL RECTIFIER CORPORATION RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS, CONTINUED __________ 1. Description Of The Plan, Continued: INVESTMENT PROGRAMS, CONTINUED SPARTAN U.S. EQUITY INDEX FUND - A growth and income fund with investments primarily in the 500 companies that make up the S&P 500. LOW-PRICED STOCK FUND - A growth fund with investments primarily in stocks of companies the fund manager considers undervalued or out of favor with other investors and that could offer the possibility for significant growth. DIVERSIFIED INTERNATIONAL FUND - A growth fund that invests primarily in stocks of companies located outside the U.S. that are included in the Morgan Stanley Europe, Australia, Far East Index. IR STOCK UNIT FUND - A fund that pools the money of Plan participants to buy stock in the Company as well as a small amount of money market instruments that allow the fund to handle exchanges, withdrawals and distributions. INTEREST-BEARING CASH FUND - A fund that temporarily holds cash from the time an investment in one fund is liquidated and a purchase in another is settled. Participants can allocate their contributions and account balances to any or all of the funds (contributions must be allocated in 20% blocks). Participants may transfer their balances, or a portion thereof, from one fund to another. PARTICIPANT LOANS The Plan allows participants to borrow from their accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their account balance. Loan transactions are treated as a transfer to (from) the investment fund from (to) the Participant Loan Fund. Loan terms range from 1-5 years or up to 10 years for the purchase of a primary residence. The loans are collateralized by the balance in the participant's account and bear interest at a rate commensurate with local prevailing rates as determined quarterly by the Plan administrator. Principal and interest is paid ratably through monthly payroll deductions. 8 INTERNATIONAL RECTIFIER CORPORATION RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS, CONTINUED __________ 1. Description Of The Plan, Continued: BENEFIT PAYMENTS On termination of service, a participant with an account balance greater than $3,500 may elect to receive either a lump-sum amount equal to the value of the participant's account or installments in the form of various types of annuities, as defined by the Plan. A participant with an account balance less than or equal to $3,500 must receive the value of his or her account as a lump-sum distribution. Benefits are recorded when paid. 2. Summary Of Accounting Policies: BASIS OF ACCOUNTING The accompanying financial statements of the Plan are prepared in conformity with generally accepted accounting principles. 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 in the statement of changes in net assets available for benefits during the reporting period. Actual results could differ from those estimates. RISKS AND UNCERTAINTIES The Plan provides for various investment options in mutual funds and other securities. Investment securities are exposed to various risks, such as interest rate, market and credit. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in risks in the near term would materially affect participants' account balances and the amounts reported in the statement of net assets available for benefits and the statement of changes in net assets available for benefits. 9 INTERNATIONAL RECTIFIER CORPORATION RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS, CONTINUED __________ 2. Summary Of Accounting Policies, Continued: INVESTMENTS The Plan's investments in shares of registered investment company mutual funds and the Company stock are valued at the last quoted sales price on the last business day of the year. Investments in commingled trust funds are valued at estimated fair values according to methods selected in good faith by the trustee. Participant loans are valued at the unpaid amount of the loan which is estimated to approximate fair value. Purchases and sales of securities are reflected on a trade date basis. The basis for all securities sold is determined by average cost. Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis. The Plan presents in the statement of changes in net assets available for benefits the net appreciation (depreciation) in fair value of its investments, which consists of the realized gains or losses and unrealized appreciation or depreciation on those investments. ADMINISTRATIVE EXPENSES The Company and the Plan pay for all administrative expenses of the Plan. The Company paid approximately $18,000 of administrative expenses on behalf of the Plan for the year ended December 31, 1997. 10 INTERNATIONAL RECTIFIER CORPORATION RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS, CONTINUED __________ 3. Investments: Investments at December 31 are as follows:
1997 1996 --------------------------- -------------------------- Fair Value Units Fair Value Units ---------- ----- ---------- ----- Investments, at fair value, as determined by quoted market price: IR Stock Unit Fund $3,766,342 318,689 Growth Company Fund 7,723,237 178,283 Intermediate Bond Fund 3,211,509 315,783 Value Fund 9,746,500 180,357 Low-Priced Stock Fund 513,457 20,432 Diversified International Fund 325,010 20,149 Spartan U.S. Equity Index Fund 996,401 28,485 Growth Equity Fund $5,622,563 290,722 Intermediate Term Bond Fund 2,827,285 277,729 Value Momentum Equity Fund 7,404,427 359,962 Company Stock Fund 3,697,408 242,453 Stock Liquidity Fund 8 8 Investments, at estimated fair value: Interest-Bearing Cash Fund 115,338 Managed Income Portfolio 4,386,183 4,386,183 Retired Government Money Market Portfolio 4,009,676 4,009,676 FDIC Pooled Savings Fund 3,904,470 3,904,470 Stable Value Income Fund 3,900,636 3,900,636 Participant Loans 2,219,460 1,689,274 ----------- ----------- $37,013,113 $29,046,071 ----------- ----------- ----------- -----------
11 INTERNATIONAL RECTIFIER CORPORATION RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS, CONTINUED __________ 3. Investments, Continued: Net appreciation (depreciation) in the value of investments for the year ended December 31, 1997 is summarized as follows:
Common stock ($795,198) Mutual funds 1,066,833 Commingled trust fund (24) --------- Net appreciation (depreciation) $271,611 --------- ---------
The number of participants in each fund at December 31, 1997 and 1996 was as follows:
1997 1996 ---- ---- IR Stock Unit Fund 700 747 Growth Company Fund 835 Intermediate Bond Fund 603 Value Fund 867 Low-Priced Stock Fund 96 Diversified International Fund 86 Retired Government Money Market Portfolio 729 Managed Income Portfolio 532 Spartan U.S. Equity Index Fund 126 Participant Loan Fund 485 369 FDIC Pooled Savings Fund 823 Stable Value Income Fund 622 Intermediate Term Bond Fund 664 Value Momentum Equity Fund 889 Growth Equity Fund 843
12 INTERNATIONAL RECTIFIER CORPORATION RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS, CONTINUED __________ 4. Reconciliation Of Financial Statements To Form 5500: The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500:
1996 ---- Net assets available for benefits per the financial statements $29,467,747 Less, Contributions receivable 421,347 ----------- Total net assets available for benefits per the Form 5500 $29,046,400 ----------- -----------
There are no reconciling items between the net assets available per the financial statements to the Form 5500 as of December 31, 1997. The following is a reconciliation of additions to net assets per the financial statements to the Form 5500 for the year ended December 31, 1997:
Total contributions per the financial statements $6,225,387 Add, Contributions receivable at December 31, 1996 421,347 ----------- Total contributions per the Form 5500 $6,646,734 ----------- -----------
5. Plan Termination: Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. The accounts of the participants affected by a partial or complete termination of the Plan are nonforfeitable and will be determined as of the termination date. 13 INTERNATIONAL RECTIFIER CORPORATION RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS, CONTINUED __________ 6. Tax Status Of The Plan: The Internal Revenue Service has determined and informed the Company at February 1998 that the Plan and related trust are designed in accordance with applicable sections of the Internal Revenue Code ("IRC"). The Plan administrator and the Plan's tax counsel believe that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC. Under the provisions of Section 401(k) of the Internal Revenue Code, contributions to the Plan are not taxable until distributed to the participants. 14 SUPPLEMENTAL SCHEDULES INTERNATIONAL RECTIFIER CORPORATION RETIREMENT SAVINGS PLAN LINE 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AS OF DECEMBER 31, 1997 __________
Identity Of Issue Cost Current Value ----------------- ---- ------------- Interest-Bearing Cash $115,338 $115,338 International Rectifier Stock Unit Fund 4,904,387 3,766,342 Growth Company Fund 7,354,575 7,723,237 Intermediate Bond Fund 3,171,970 3,211,509 Value Fund 9,503,325 9,746,500 Low-Priced Stock Fund 488,381 513,457 Diversified International Fund 327,142 325,010 Retired Government Money Market Portfolio 4,009,676 4,009,676 Managed Income Portfolio 4,386,183 4,386,183 Spartan U.S. Equity Index Fund 889,897 996,401 Participant loans with interest rates ranging from 8.25% to 8.5% -0- 2,219,460 ----------- $37,013,113 ----------- -----------
15 INTERNATIONAL RECTIFIER CORPORATION RETIREMENT SAVINGS PLAN LINE 27D - SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1997 __________ Transaction in excess of 5% of current value of Plan assets at the beginning of the year are as follows: Single Transactions: - --------------------
Purchase Selling Cost of Net Gain Descriptions Price(2) Price(2) Asset Sold (Loss) ------------ --------- --------- ---------- --------- Company Stock Fund $3,697,420 $3,697,420 - Growth Equity Fund 5,622,606 5,622,606 - Intermediate Term Bond Fund 2,827,354 2,827,354 - Value Momentum Equity Fund 7,404,436 7,404,436 - FDIC Pooled Savings Fund 3,904,480 3,904,480 - Stable Value Income Fund 3,900,676 3,900,676 - International Rectifier Stock Unit Fund $3,697,420 Growth Company Fund 5,622,563 Intermediate Term Bond Fund 2,827,285 Value Fund 7,404,427 Retirement Government Money Market Portfolio 3,904,470 Managed Income Portfolio 3,900,636 Series Of Transactions(1): - -------------------------- Total Total Total Total Number Of Number Of Dollar Value Dollar Value Net Gain Descriptions Purchases Sales Of Purchases Of Sales (Loss) ------------ --------- ---------- ------------ ------------- --------- International Rectifier Stock Unit Fund 207 164 $7,199,278 $2,522,400 $154,074 Growth Equity Fund 183 142 14,317,692 1,461,993 121,482 Intermediate Bond Fund 161 134 6,673,528 674,702 588 Value Fund 188 151 18,928,565 2,166,916 146,111 Retirement Government Money Market Portfolio 164 163 9,709,056 1,794,900 - Managed Income Portfolio 176 155 9,512,422 1,225,563 -
(1) Includes single transactions above. (2) The current value of the assets purchased or sold during the period, at the date of the purchase or sale, was equivalent to either the purchase price or sales prices, respectively. 16 EX-23.1 2 EXHIBIT 23.1 CONSENT OF INDEPENDENT ACCOUNTANTS We consent to the incorporation by reference in the registration statement of International Rectifier Corporation on Form S-8 (File No. 33-44332) of our report dated June 26, 1998 on our audits of the financial statements of International Rectifier Corporation Retirement Savings Plan as of December 31, 1997 and 1996, and for the year ended December 31, 1997, which report is included in this Annual Report on Form 11-K. /s/ Coopers & Lybrand L.L.P. - ------------------------------ Coopers & Lybrand L.L.P. Newport Beach, California June 29, 1998 -----END PRIVACY-ENHANCED MESSAGE-----