-----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, BG0FasDjA72JPi8bKQsgZPwPc4A3qeE9KUNRotHPxoCEu9tSgtTbHTs1EyLTJppy /HXeV2rqd44IslOyo599zQ== 0000950137-99-000651.txt : 19990330 0000950137-99-000651.hdr.sgml : 19990330 ACCESSION NUMBER: 0000950137-99-000651 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19990329 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ANDREW CORP CENTRAL INDEX KEY: 0000317093 STANDARD INDUSTRIAL CLASSIFICATION: DRAWING AND INSULATING NONFERROUS WIRE [3357] IRS NUMBER: 362092797 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 001-14617 FILM NUMBER: 99576822 BUSINESS ADDRESS: STREET 1: 10500 W 153RD ST CITY: ORLAND PARK STATE: IL ZIP: 60462 BUSINESS PHONE: 7083493300 MAIL ADDRESS: STREET 1: 10500 WEST 153RD ST CITY: ORLANDO PARK STATE: IL ZIP: 60462 11-K 1 FORM 11-K DATED 9/30/98 1 ================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 11-K ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Mark One) (X) ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT of 1934 (NO FEE REQUIRED) For the fiscal year ended September 30, 1998. OR ( ) TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED) For the period from _____________ to _______________ Commission file number 0-9514 A. Full title of the plan and the address of the plan, if different from that of issuer named below: ANDREW PROFIT SHARING PLAN B. Name of issuer of the securities held pursuant to the plan and the address of its executive office: ANDREW CORPORATION 10500 W. 153RD STREET, ORLAND PARK, ILLINOIS 60462 (Address of principal executive offices and zip code) (708) 349-3300 (Registrant's telephone number, including area code) ================================================================================ 2 Financial Statements and Supplemental Schedules Andrew Profit Sharing Plan Years ended September 30, 1998 and 1997 with Report of Independent Auditors Employer Identification #36-2092797 Plan #001 3 Andrew Profit Sharing Plan Financial Statements and Supplemental Schedules Years ended September 30, 1998 and 1997 CONTENTS Report of Independent Auditors............................................. 1 Financial Statements Statements of Net Assets Available for Benefits, With Fund Information................................. .................. 2 Statements of Changes in Net Assets Available for Benefits, With Fund Information.................................................... 4 Notes to Financial Statements.............................................. 6 Supplemental Schedules Line 27a - Schedule of Assets Held for Investment Purposes................ 13 Line 27d - Schedule of Reportable Transactions............................ 14 4 Report of Independent Auditors Trustees Andrew Profit Sharing Plan We have audited the accompanying statements of net assets available for benefits of Andrew Profit Sharing Plan as of September 30, 1998 and 1997, and the related statements of changes in net assets available for benefits 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 accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan at September 30, 1998 and 1997, and the changes in its net assets available for benefits for the years then ended, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedules of assets held for investment purposes as of September 30, 1998, and reportable transactions for the year then ended, are presented for purposes of complying with the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 and are not a required part of the financial statements. The Fund Information in the statements of net assets available for benefits and the statements 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 our audits of the financial statements and, in our opinion, are fairly stated in all material respects in relation to the financial statements taken as a whole. Chicago, IL February 24, 1999 1 5 EIN 36-2092797 Plan #001 Andrew Profit Sharing Plan Statement of Net Assets Available for Benefits, With Fund Information September 30, 1998
FUND INFORMATION --------------------------------------------------------------------------------------------- BENHAM PIMCO PIMCO ACI ACI ACI STABLE TOTAL MID-CAP EQUITY INCOME & INTERNATIONAL ASSET RETURN GROWTH INCOME GROWTH GROWTH FUND FUND FUND FUND FUND FUND --------------------------------------------------------------------------------------------- ASSETS Receivables: Andrew Corporation and subsidiaries contributions $ 1,162,228 $ 281,861 $ 748,671 $ 665,738 $ 1,566,073 $ 429,392 Accrued income 157,310 - - - - - Investments, at fair value: Andrew Corporation common stock - - - - - - Mutual funds - 8,528,300 9,165,854 9,651,235 22,128,262 5,176,720 Money market funds 26,924,384 - - - - - Loans to participants - - - - - - --------------------------------------------------------------------------------------------- 26,924,384 8,528,300 9,165,854 9,651,235 22,128,262 5,176,720 --------------------------------------------------------------------------------------------- Total assets 28,243,922 8,810,161 9,914,525 10,316,973 23,694,335 5,606,112 LIABILITIES Refunds to participants 1,319,366 - - - - - --------------------------------------------------------------------------------------------- Total liabilities 1,319,366 - - - - - --------------------------------------------------------------------------------------------- Net assets available for benefits $26,924,556 $8,810,161 $ 9,914,525 $10,316,973 $ 23,694,335 $ 5,606,112 ============================================================================================= FUND INFORMATION --------------------------------------------------------------------------------------------- ANDREW CORPORATION BARCLAYS STOCK FUND FIDELITY ------------------------------ EQUITY J.P. MORGAN J.P. MORGAN NON- EQUITY INDEX US SMALL CO. DIVERSIFIED PARTICIPANT PARTICIPANT INCOME FUND FUND FUND DIRECTED DIRECTED FUND --------------------------------------------------------------------------------------------- ASSETS Receivables: Andrew Corporation and subsidiaries contributions $ 818,922 $ 498,409 $ 571,552 $ 5,815,986 $ 374,705 $ 334,820 Accrued income - - - - - - Investments, at fair value: Andrew Corporation common stock - - - 31,230,087 11,219,926 - Mutual funds 11,028,770 4,337,103 8,109,635 - - 10,123,462 Money market funds - - - - - - Loans to participants - - - - - --------------------------------------------------------------------------------------------- 11,028,770 4,337,103 8,109,635 31,230,087 11,219,926 10,123,462 --------------------------------------------------------------------------------------------- Total assets 11,847,692 4,835,512 8,681,187 37,046,073 11,594,631 10,458,282 LIABILITIES Refunds to participants - - - - - - --------------------------------------------------------------------------------------------- Total liabilities - - - - - - --------------------------------------------------------------------------------------------- Net assets available for benefits $11,847,692 $4,835,512 $8,681,187 $37,046,073 $ 11,594,631 $10,458,282 ============================================================================================= FUND INFORMATION ------------------------------------------------------------- FIDELITY FIDELITY PURITAN MAGELLAN LOAN FUND FUND FUND TOTAL ------------------------------------------------------------- ASSETS Receivables: Andrew Corporation and subsidiaries contributions $ 175,347 $ 520,153 $ - $ 13,963,857 - Accrued income - - - 157,310 Investments, at fair value: Andrew Corporation common stock - - - 42,450,013 Mutual funds 8,302,167 13,616,685 - 110,168,193 Money market funds - - - 26,924,384 Loans to participants - - 11,778,856 11,778,856 ------------------------------------------------------------- 8,302,167 13,616,685 11,778,856 191,321,446 ------------------------------------------------------------- Total assets 8,477,514 14,136,838 11,778,856 205,442,613 LIABILITIES Refunds to participants - - - 1,319,366 ------------------------------------------------------------- Total liabilities - - - - ------------------------------------------------------------- Net assets available for benefits $8,477,514 $14,136,838 $11,778,856 $204,123,247 =============================================================
See notes to financial statements. 2 6 EIN 36-2092797 Plan #001 Andrew Profit Sharing Plan Statement of Net Assets Available for Benefits, With Fund Information September 30, 1997
FUND INFORMATION ----------------------------------------------------------------------------------------- FIDELITY FIDELITY COLLECTIVE EQUITY FIDELITY FIDELITY INTERMEDIATE TRUST INCOME PURITAN MAGELLAN BOND FUND FUND FUND FUND FUND ----------------------------------------------------------------------------------------- ASSETS Cash $ 107,521 $ - $ - $ - $ - Receivables: Andrew Corporation and subsidiaries contributions 10,698,797 - - - - Participant contributions 890,470 - - - - Accrued interest and dividends 327,969 - - - - ---------------------------------------------------------------------------------------- 11,917,236 - - - - Investments, at fair value: Andrew Corporation common stock 129,425,539 - - - - Common trust funds 66,774,356 - - - - Mutual funds - 10,076,837 6,715,652 11,493,567 2,488,307 Money market funds 1,065,097 - - - - Loans to participants 414,341 - - - - ----------------------------------------------------------------------------------------- 197,679,333 10,076,837 6,715,652 11,493,567 2,488,307 ----------------------------------------------------------------------------------------- Total assets 209,704,090 10,076,837 6,715,652 11,493,567 2,488,307 LIABILITIES Refunds to participants 369,117 - - - - Accounts payable 125,156 - - - - Forfeitures held 285,854 - - - - ----------------------------------------------------------------------------------------- Total liabilities 780,127 - - - - ----------------------------------------------------------------------------------------- Net assets available for benefits $ 208,923,963 $10,076,837 $6,715,652 $11,493,567 $2,488,307 ========================================================================================= FUND INFORMATION ----------------------------------------------------------------------------------------- FIDELITY FIDELITY FIDELITY RETIREMENT FIDELITY RETIREMENT ASSET GOVERNMENT MANAGED GROWTH MANAGER MONEY MARKET INCOME LOAN FUND FUND FUND FUND FUND TOTAL ----------------------------------------------------------------------------------------- ASSETS Cash $ - $ - $ - $ - $ - $ 107,521 Receivables: Andrew Corporation and subsidiaries contributions - - - - - 10,698,797 Participant contributions - - - - - 890,470 Accrued interest and dividends - - - - - 327,969 ----------------------------------------------------------------------------------------- - - - - - 11,917,236 Investments, at fair value: Andrew Corporation common stock - - - - - 129,425,539 Common trust funds - - - - - 66,774,356 Mutual funds 4,389,937 2,249,041 - 2,939,423 - 40,352,764 Money market funds - - 4,719,046 - - 5,784,143 Loans to participants - - - - 12,068,273 12,482,614 ------------------------------------------------------------------------------------------- 4,389,937 2,249,041 4,719,046 2,939,423 12,068,273 254,819,416 ------------------------------------------------------------------------------------------- Total assets 4,389,937 2,249,041 4,719,046 2,939,423 12,068,273 266,844,173 LIABILITIES Refunds to participants - - - - - 369,117 Accounts payable - - - - - 125,156 Forfeitures held - - - - - 285,854 ------------------------------------------------------------------------------------------ Total liabilities - - - - - 780,127 ----------------------------------------------------------------------------------------- Net assets available for benefits $4,389,937 $2,249,041 $4,719,046 $2,939,423 $12,068,273 $266,064,046 ==========================================================================================
3 7
FUND INFORMATION - -------------------------------------------------------------------------------------------------------------------------- ANDREW CORPORATION BARCLAYS STOCK FUND FIDELITY ------------------------------------ EQUITY J.P. MORGAN J.P. MORGAN NON- EQUITY FIDELITY INDEX US SMALL CO. DIVERSIFIED PARTICIPANT PARTICIPANT INCOME PURITAN FUND FUND FUND DIRECTED DIRECTED FUND FUND - -------------------------------------------------------------------------------------------------------------------------- $ 818,922 $ 498,409 $ 571,552 $ 5,815,986 $ 374,705 $ 334,820 $ 175,347 183,438 116,964 126,437 - 73,704 66,800 36,443 - -------------------------------------------------------------------------------------------------------------------------- 1,002,360 615,373 697,989 5,815,986 448,409 401,620 211,790 - 8,299 34,034 - - 734,759 1,051,797 - - - - - - - (1,382,699) (1,291,198) (648,072) (11,493,158) (3,891,312) 33,352 (251,703) - -------------------------------------------------------------------------------------------------------------------------- (1,382,699) (1,282,899) (614,038) (11,493,158) (3,891,312) 768,111 800,094 - -------------------------------------------------------------------------------------------------------------------------- (380,339) (667,526) 83,951 (5,677,172) (3,442,903) 1,169,731 1,011,884 (90,653) (10,845) (46,061) (729,213) (120,878) (732,660) (735,013) (583) (574) (844) - (50) (4,619) (3,047) - -------------------------------------------------------------------------------------------------------------------------- (91,236) (11,419) (46,905) (729,213) (120,928) (737,279) (738,060) 12,319,267 5,514,457 8,644,141 43,452,458 15,158,462 (51,007) 1,488,038 - -------------------------------------------------------------------------------------------------------------------------- 11,847,692 4,835,512 8,681,187 37,046,073 11,594,631 381,445 1,761,862 - - - - - 10,076,837 6,715,652 - -------------------------------------------------------------------------------------------------------------------------- $ 11,847,692 $ 4,835,512 $ 8,681,187 $ 37,046,073 $ 11,594,631 $ 10,458,282 $ 8,477,514 ========================================================================================================================== FUND INFORMATION - ------------------------------------------------------------------------------------------------------- FIDELITY FIDELITY FIDELITY FIDELITY RETIREMENT FIDELITY FIDELITY INTERMEDIATE RETIREMENT ASSET GOVERNMENT MANAGED MAGELLAN BOND GROWTH MANAGER MONEY MARKET INCOME FUND FUND FUND FUND FUND FUND - ------------------------------------------------------------------------------------------------------- $ 520,153 $ - $ - $ - $ - $ - 117,686 - - - - - - ------------------------------------------------------------------------------------------------------- 637,839 - - - - - 922,242 156,823 710,159 194,486 228,447 139,846 - - - - - - 14,484 13,210 771,244 163,735 - - - ------------------------------------------------------------------------------------------------------- 936,726 170,033 1,481,403 358,221 228,447 139,846 - ------------------------------------------------------------------------------------------------------- 1,574,565 170,033 1,481,403 358,221 228,447 139,846 (746,573) (457,994) (301,001) (345,855) (2,646,546) (327,472) (7,272) - - - - - - ------------------------------------------------------------------------------------------------------- (753,845) (457,994) (301,001) (345,855) (2,646,546) (327,472) 1,822,551 (2,200,346) (5,570,339) (2,261,407) (2,300,947) (2,751,797) - ------------------------------------------------------------------------------------------------------- 2,643,271 (2,488,307) (4,389,937) (2,249,041) (4,719,046) (2,939,423) 11,493,567 2,488,307 4,389,937 2,249,041 4,719,046 2,939,423 - ------------------------------------------------------------------------------------------------------- $14,136,838 $ - $ - $ - $ - $ - ======================================================================================================= FUND INFORMATION - --------------------------------------------------- COLLECTIVE TRUST LOAN FUND FUND TOTAL - --------------------------------------------------- $ - $ - $ 13,963,857 - 5,030,313 - 5,402,897 - --------------------------------------------------- 5,030,313 - 19,366,754 2,727,749 - 7,858,194 35,058 923,530 958,588 (40,006,634) - (63,858,435) - --------------------------------------------------- (37,243,827) 923,530 (55,041,653) - --------------------------------------------------- (32,213,514) 923,530 (35,674,899) (16,431,473) (378,141) (26,209,429) (35,101) - (56,471) - --------------------------------------------------- (16,466,574) (378,141) (26,265,900) (160,243,875) (834,806) - - --------------------------------------------------- (208,923,963) (289,417) (61,940,799) 208,923,963 12,068,273 266,064,046 - --------------------------------------------------- $ - $ 11,778,856 $ 204,123,247 ===================================================
8 EIN 36-2092797 Plan #001 Andrew Profit Sharing Plan Statement of Changes in Net Assets Available for Benefits, With Fund Information Year ended September 30, 1998
FUND INFORMATION ----------------------------------------------------------------------------------------------- BENHAM PIMCO PIMCO ACI ACI ACI STABLE TOTAL MID-CAP EQUITY INCOME & INTERNATIONAL ASSET RETURN GROWTH INCOME GROWTH GROWTH FUND FUND FUND FUND FUND FUND ----------------------------------------------------------------------------------------------- Additions Contributions: Andrew Corporation and subsidiaries $ 1,162,228 $ 281,861 $ 748,671 $ 665,738 $ 1,566,073 $ 429,392 Participants (1,149,292) 55,356 167,127 142,330 340,336 95,255 ----------------------------------------------------------------------------------------------- 12,936 337,217 915,798 808,068 1,906,409 524,647 Investment income: Dividend and interest income 598,032 151,193 - 87,953 112,375 - Interest from loans to participants - - - - - - Net realized and unrealized (depreciation) appreciation in fair value of investments - 268,642 (1,736,157) (847,627) (2,494,966) (1,079,576) ----------------------------------------------------------------------------------------------- 598,032 419,835 (1,736,157) (759,674) (2,382,591) (1,079,576) ----------------------------------------------------------------------------------------------- 610,968 757,052 (820,359) 48,394 (476,182) (554,929) Deductions Benefits paid to terminated and retired participants (1,947,383) (24,067) (17,005) (55,513) (50,529) (14,554) Administrative expense (1,389) (233) (658) (606) (1,052) (443) ----------------------------------------------------------------------------------------------- (1,948,772) (24,300) (17,663) (56,119) (51,581) (14,997) Net interfund transfers 28,262,360 8,077,409 10,752,547 10,324,698 24,222,098 6,176,038 ----------------------------------------------------------------------------------------------- Net increase (decrease) 26,924,556 8,810,161 9,914,525 10,316,973 23,694,335 5,606,112 Net assets available for benefits at beginning of year - - - - - - ----------------------------------------------------------------------------------------------- Net assets available for benefits at end of year $ 26,924,556 $ 8,810,161 $ 9,914,525 $ 10,316,973 $ 23,694,335 $ 5,606,112 ===============================================================================================
4 9 EIN 36-2092797 Plan #001 Andrew Profit Sharing Plan Statement of Changes in Net Assets Available for Benefits, With Fund Information Year ended September 30, 1997
FUND INFORMATION ------------------------------------------------------------------------------------------ FIDELITY FIDELITY COLLECTIVE EQUITY FIDELITY FIDELITY INTERMEDIATE TRUST INCOME PURITAN MAGELLAN BOND FUND FUND FUND FUND FUND ------------------------------------------------------------------------------------------ Additions- Contributions: Andrew Corporation and subsidiaries contributions $ 10,895,272 $ - $ - $ - $ - Participant 7,605,987 - - - - ------------------------------------------------------------------------------------------ 18,501,259 - - - - Investment income: Interest and dividend income 2,595,238 454,804 403,873 334,500 147,261 Interest from loans to 44,769 - - - - participants Miscellaneous income 6,515 - - - - Net realized and unrealized (depreciation) appreciation in fair value of investments (27,277,545) 2,251,581 1,028,481 2,931,613 28,831 ------------------------------------------------------------------------------------------ (24,631,023) 2,706,385 1,432,354 3,266,113 176,092 ------------------------------------------------------------------------------------------ Total additions (6,129,764) 2,706,385 1,432,354 3,266,113 176,092 Deductions Benefits paid to terminated and retired participants 26,953,668 (643,179) (107,297) (951,233) (14,851) Administrative expense 479,502 (1,361) (2,498) (1,260) (1,241) ------------------------------------------------------------------------------------------ 27,433,170 (644,540) (109,795) (952,493) (16,092) Net interfund transfers (3,647,490) 2,086,887 392,372 (1,598,348) 50,653 ------------------------------------------------------------------------------------------ Net increase (decrease) (37,210,424) 4,148,732 1,714,931 715,272 210,653 Net assets available for benefits at beginning of year 246,134,387 5,928,105 5,000,721 10,778,295 2,277,654 ------------------------------------------------------------------------------------------ Net assets available for benefits at end of year $208,923,963 $10,076,837 $6,715,652 $11,493,567 $2,488,307 ========================================================================================== FUND INFORMATION ------------------------------------------------------------------------------------------ FIDELITY FIDELITY FIDELITY RETIREMENT FIDELITY RETIREMENT ASSET GOVERNMENT MANAGED GROWTH MANAGER MONEY MARKET INCOME LOAN FUND FUND FUND FUND FUND TOTAL ------------------------------------------------------------------------------------------ Additions- Contributions: Andrew Corporation and subsidiaries contributions $ - $ - $ - $ - $ - $ 10,895,272 - Participant - - - - - 7,605,987 ------------------------------------------------------------------------------------------ - - - - - 18,501,259 Investment income: Interest and dividend income 431,086 168,210 256,074 161,918 - 4,952,964 Interest from loans to - - - - 883,454 928,223 participants Miscellaneous income - - - - - 6,515 Net realized and unrealized (depreciation) appreciation in fair value of investments 578,988 328,885 - - - (20,129,166) ------------------------------------------------------------------------------------------ 1,010,074 497,095 256,074 161,918 883,454 (14,241,464) ------------------------------------------------------------------------------------------ Total additions 1,010,074 497,095 256,074 161,918 883,454 4,259,795 Deductions Benefits paid to terminated and retired participants (386,673) (209,716) (2,954,085) (145,430) - 32,366,132 Administrative expense (124) (394) (2,539) (334) - 489,253 ------------------------------------------------------------------------------------------ (386,797) (210,110) (2,956,624) (145,764) - 32,855,385 Net interfund transfers (45,450) (137,425) 2,591,219 566,494 (258,912) - ------------------------------------------------------------------------------------------ Net increase (decrease) 577,827 149,560 (109,331) 582,648 624,542 (28,595,590) Net assets available for benefits at beginning of year 3,812,110 2,099,481 4,828,377 2,356,775 11,443,731 294,659,636 ------------------------------------------------------------------------------------------ Net assets available for benefits at end of year $4,389,937 $2,249,041 $4,719,046 $2,939,423 $12,068,273 $266,064,046 ==========================================================================================
See notes to financial statements. 5 10 Andrew Profit Sharing Plan Notes to Financial Statements Years ended September 30, 1998 and 1997 1. DESCRIPTION OF THE PLAN GENERAL The following description of the Andrew Profit Sharing Plan (the Plan) provides only general information. Participants should refer to the Plan Agreement for a more complete description of the Plan's provision. The Plan is a defined-contribution plan covering certain United States employees of Andrew Corporation and subsidiaries (the Company). An employee becomes eligible to participate in the Plan on the first day of the calendar quarter after completing 514 hours of service. Effective July 1, 1998, an employee becomes eligible to participate in the Plan after completing 90 days of continuous service. The Plan was established to afford employees an opportunity to share in the Company's profits and to save systematically. CONTRIBUTIONS The Company's profit-sharing contribution is to be made from current earnings in accordance with the Plan agreement and approval by the Board of Directors of the Company. In addition, the Company matches amounts contributed by participants subject to limitation by the Plan agreement (see below). However, in accordance with the Tax Reform Act of 1986, the total amount contributed to the Plan by a participant cannot exceed the lesser of 25% of compensation or the Internal Revenue Code (IRC) limit. Each participant's combined maximum contribution under the Plan is 15% of annual gross earnings unless the participant's annual gross pay exceeds $80,000 in 1998 and $66,000 in 1997, in which case the maximum is limited to 10% of gross pay. Participants with over two full years of service with the Company who contribute 3% or more of their gross earnings receive a Company matching contribution also equal to 3% of their gross earnings. INVESTMENT OPTIONS Effective July 1, 1998, participants may elect to contribute to thirteen investment fund options. There are no restrictions on interfund transfers except for those involving Andrew Corporation common stock. These transfers are limited to once per quarter. 6 11 Andrew Profit Sharing Plan Notes to Financial Statements (Continued) 1. DESCRIPTION OF THE PLAN (CONTINUED) The following are descriptions of the investment options: CORE INVESTMENT CHOICES - - BENHAM STABLE ASSET FUND - Seeks to protect principal from market volatility, yield higher than money market, and predictable annual return. - - PIMCO TOTAL RETURN FUND - Seeks total returns consistent with preservation of capital. The Fund invests at least 65% of assets in debt securities, and may invest up to 20% in securities dominated in foreign currency. The portfolio duration ranges three to six years. - - PIMCO MID CAP GROWTH FUND - Seeks capital growth, invests in common stocks of mid-cap companies that the investors judge to have improving fundamentals and modest valuations. - - AMERICAN CENTURY EQUITY INCOME FUND - Seeks current income with capital appreciation as a secondary objective. Seeks to exceed the yield of securities comprising the S&P 500 Composite Index. - - AMERICAN CENTURY INCOME & GROWTH FUND - Seeks to provide dividend growth, current income, and capital appreciation by investing in common stocks. Seeks a total return and dividend yield that exceed those of the S&P 500. - - AMERICAN CENTURY-TWENTIETH CENTURY INTERNATIONAL GROWTH FUND - Seeks capital growth over time. Invests in common stocks of foreign companies. - - BARCLAYS GLOBAL INVESTORS EQUITY INDEX FUND - Invests to match the performance of the S&P 500 Index by investing in most of the same common stocks. - - J.P. MORGAN US SMALL COMPANY FUND - Seeks to provide a high total return by investing in a portfolio of equity securities. Seeks to outperform the Russell 2500 Index. - - J.P. MORGAN DIVERSIFIED FUND - Seeks high total returns, invests approximately 65% in equities and 35% in fixed income securities. 7 12 Andrew Profit Sharing Plan Notes to Financial Statements (Continued) 1. DESCRIPTION OF THE PLAN (CONTINUED) - - ANDREW CORPORATION STOCK FUND-FIXED/TRADING ACCOUNTS - Seeks increased stockholder value. Participants under age 55 are required to participate in the Fixed Account which is a nonparticipant directed account. Additionally, 50% of profit-sharing contributions are directed towards this account. Participants must hold these investments until they are 55. The trading account is the participant directed portion of the stock fund. NON-CORE INVESTMENT CHOICES (ALTERNATIVE INVESTMENT CHOICE THAT REQUIRES $50 ANNUAL INVESTMENT FEE PER FUND) - - FIDELITY EQUITY-INCOME FUND - Seeks income and capital appreciation. Invests in at least 65% of assets in income-producing equity securities and the balance in all types of domestic and foreign securities. - - FIDELITY PURITAN FUND - Seeks income consistent with preservation of capital. Invests in a diversified array of high-yielding securities. - - FIDELITY MAGELLAN FUND - Seeks capital appreciation. Invests in common stocks and convertible securities with up to 20% of assets invested in debt securities. Prior to July 1, 1998, the Plan maintained three funds, The Collective Trust Fund, the Fidelity Investment Fund, and the Loan Fund. Company and participant contributions were directed to the Collective Trust Fund. Participants under age 55 could transfer up to 50% of their unencumbered Collective Trust Fund account balances to the Fidelity Investment Funds (comprised of eight separate funds); participants over age 55 could transfer 100% of their unencumbered account balances. The Trustees designated that a participant could make only one transfer between funds per Plan fiscal year; however, this limitation was subject to change at the Trustees' discretion. Additionally, each participant could at any time during the year and as often as desired without limit, transfer amounts between any combination of the eight available Fidelity Investment Funds. INDIVIDUAL PARTICIPANT ACCOUNTS Each participant's account is credited with the participant's contributions and allocations of: a) the Company's contributions, b) Plan earnings, and c) forfeited balances of terminated participants' nonvested accounts. The benefit to which a participant is entitled is the benefit that can be provided from the participant's account. 8 13 Andrew Profit Sharing Plan Notes to Financial Statements (Continued) 1. DESCRIPTION OF THE PLAN (CONTINUED) PARTICIPANT NOTES RECEIVABLE A participant may borrow from the Plan at terms deemed appropriate by the Trustees. Loan amounts may not exceed limitations specified by the Trust agreement and by the Tax Reform Act of 1986. Generally, loans are repayable within five years, and a participant's total outstanding loan balance is limited to the lesser of $50,000 or one-half of the participant's vested equity reduced by the participant's highest loan balance during the preceding 12 months. Interest on loans paid to the Plan is allocated to borrowers through the Loan Fund at rates in effect at the time of the loan. Effective July 1, 1998, a loan application fee of $50 was put into effect. PAYMENT OF BENEFITS Upon the retirement or death of a participant, distribution to the participant or the participant's beneficiary may be made in a lump sum, in approximate equal installments over a reasonable period, or by purchase of an annuity contract from one or more life insurance companies, subject to certain limitations. The annuity distribution option was discontinued for new participants subsequent to January 1, 1998. VESTING Participants who leave the Company prior to retirement or disability receive the full amount of their contributions and earnings thereon up to the date on which such resignation or discharge occurs. In addition, participants receive the entire amount of Company contributions, earnings thereon, and forfeitures credited to them if the participants have five or more years of service with the Company. Participants with less than five years of service receive 20% of the Company contributions, earnings thereon, and forfeitures credited to them for each year of service. The reduction resulting from less than five full calendar years' service is defined as a forfeiture and is subsequently reallocated to the remaining participants in the Plan as of the next succeeding year-end. 2. SIGNIFICANT ACCOUNTING POLICIES INVESTMENT VALUATION Investments are stated at fair value. Securities traded on a national securities exchange are valued at the last reported sales price on the last business day of the Plan's fiscal year; securities traded in over-the-counter markets and listed securities for which no sale was 9 14 Andrew Profit Sharing Plan Notes to Financial Statements (Continued) 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) reported on that date are valued at the last reported bid price. Participation units in common trust funds are carried at fair value as reported by the respective fund trustees. Investments in mutual funds are stated at fair value, using quoted market prices of underlying investments. Money market accounts are carried at cost, which equals fair value. Loans to participants are stated at principal amount outstanding, which approximates fair value. ADMINISTRATIVE EXPENSES All costs and expenses incurred with regard to independent fund managers and purchase and sale of investments are borne by the Plan. Administrative and general expenses, principally payroll costs of Plan administration, are borne by the Company. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires the plan administrator to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. RECLASSIFICATION Certain reclassifications have been made on the prior year's financial statements to conform to the 1998 presentation. RELATED PARTY TRANSACTION On June 30, 1998, the Company purchased from the Plan 1,664,826 shares of Andrew Corporation common stock at the June 30, 1998 average high/low price per share of $18.344 per share. The total sale was $30,539,568. 10 15 Andrew Profit Sharing Plan Notes to Financial Statements (Continued) 3. INVESTMENTS The Plan's investments (including investments bought, sold, and held during the fiscal year) (depreciated)/appreciated in fair value in 1998 and 1997, as follows: NET REALIZED AND UNREALIZED (DEPRECIATION) APPRECIATION IN FAIR VALUE FAIR VALUE DURING YEAR AT YEAR-END ---------------------------------- Year ended September 30, 1998: Andrew Corporation common stock $ (55,391,104) $ 42,450,013 Mutual Funds (8,467,331) 110,168,193 Money market funds - 26,924,384 ---------------------------------- $ (63,858,435) $179,542,590 ================================== Year ended September 30, 1997: Andrew Corporation common stock $ (34,879,215) $129,425,539 Other corporate common stock 7,601,670 66,774,356 Fidelity Investment Funds 7,148,379 45,071,810 Money market funds - 1,065,097 ---------------------------------- $ (20,129,166) $242,336,802 ================================== The fair value of individual investments that represent 5% or more of the Plan's net assets are as follows: SEPTEMBER 30 1998 1997 ---------------------------------- Andrew Corporation common stock (1998 - 3,200,049 shares; 1997 - 4,942,264 shares) $ 42,450,012 $129,425,539 LaSalle National Trust Pooled Trust Fund - 14,581,778 Northern Trust Collective Government Short-Term Investment Fund - 52,192,578 Fidelity Magellan Fund 13,616,685 - American Century Income & Growth Fund 22,128,262 - Benham Stable Asset Fund 26,924,834 - Barclay's Equity Index Fund 11,028,770 - 11 16 Andrew Profit Sharing Plan Notes to Financial Statements (Continued) 4. PLAN TERMINATION The Company has the right to amend or alter the Plan or discontinue it by giving written notice of intention to do so to the Trustees prior to the last day of the Plan year for which such discontinuance becomes effective. In the event of Plan termination, participants will become 100% vested in their accounts. 5. COMMON STOCK SPLIT On March 11, 1997, the Company split its common stock, three shares for two, for holders of record on February 25, 1997. Accordingly, the cost basis of the common stock held by the Plan was adjusted. 6. INCOME TAX STATUS The Internal Revenue Service ruled on December 29, 1995, that the Plan qualifies under section 401(a) of the IRC, and, therefore, the related trust is not subject to tax under present income tax law. Once qualified, the Plan is required to operate in conformity with the IRC to maintain its qualification. The plan administrator is not aware of any course of action or series of events that have occurred that might adversely affect the Plan's qualified status. 7. YEAR 2000 ISSUE (UNAUDITED) The Company has developed a plan to modify its internal information technology to be ready for the year 2000 and is in the process of converting critical data processing systems. They are also determining whether third-party service providers have recoverable plans in place to become Year 2000 compliant. The Company does not expect this project to have a significant effect on Plan operations. 12 17 Supplemental Schedules 18 EIN 36-2092797 Plan #001 Andrew Profit Sharing Plan Line 27a - Schedule of Assets Held for Investment Purposes September 30, 1998 DESCRIPTION OF CURRENT IDENTITY OF ISSUE INVESTMENT COST VALUE - -------------------------------------------------------------------------------- COMMON STOCK ANDREW CORPORATION* Fixed - Nonparticipant directed 2,356,089 shares $ 1,001,244 $ 31,230,087 Trading - Participant directed 843,960 shares 358,605 11,219,926 ---------------------------- 1,359,849 42,450,013 FIDELITY INVESTMENT FUNDS* Puritan Fund 457,924 shares 9,500,918 8,302,167 Magellan Fund 139,629 shares 15,216,622 13,616,685 Equity Income Fund 204,102 shares 11,552,302 10,123,462 PIMCO FUNDS Total Return Fund 769,008 shares 8,260,193 8,528,300 Mid Cap Growth Fund 447,115 shares 10,780,367 9,165,854 AMERICAN CENTURY INVESTMENT FUNDS* Equity Income Fund 1,500,969 shares 10,465,764 9,651,235 International Growth Fund 611,905 shares 6,230,460 5,176,720 Income & Growth Fund 888,328 shares 25,217,038 22,128,262 SEI TRUST Benham Stable Asset Fund 26,924,384 shares 26,924,384 26,924,384 J.P. MORGAN FUNDS Diversified Fund 576,788 shares 8,739,612 8,109,635 U.S. Small Company Fund 201,632 shares 5,493,995 4,337,103 BARCLAYS GLOBAL INVESTORS Equity Index Fund 456,489 shares 12,375,648 11,028,770 LOANS TO PARTICIPANTS Notes receivable (8.25%-8.5%) - 11,778,856 --------------------------- Total investments $152,117,152 $191,321,446 =========================== *Indicates party in interest to the Plan. 13 19 EIN 36-2092797 Plan #001 Andrew Profit Sharing Plan Line 27d - Schedule of Reportable Transactions Year ended September 30, 1998
PURCHASE SELLING COST IDENTITY OF PARTY INVOLVED DESCRIPTION OF ASSETS PRICE PRICE OF ASSET - ----------------------------------------------------------------------------------------------------------------------------- Category (i) - Individual transactions in excess of 5% of plan assets - --------------------------------------------------------------------- American Century Investments Income & Growth Fund $23,529,987 $ - $23,529,987 The Northern Trust Company Collective Government Short-Term Investment Fund - 24,687,449 24,687,449 - 29,120,831 29,120,831 29,120,831 - 29,120,831 - 29,121,883 29,121,883 LaSalle National Trust, N.A. Money Market Fund - 15,325,529 15,325,529 SEI Trust Benham Stable Asset Fund 30,121,632 - 30,121,632 Andrew Corporation Andrew Corporation common stock - 30,539,568 231,410 Category (iii) - Series of transactions in excess of 5% of plan assets - ---------------------------------------------------------------------- American Century Investments Income & Growth Fund 25,543,321 - 25,543,321 - 275,917 326,283 The Northern Trust Company Collective Government Short-Term Investment Fund 30,868,388 - 30,868,388 - 83,058,443 83,058,443 LaSalle National Trust, N.A. Money Market Fund 851,769 - 851,769 - 15,433,545 15,433,545 Kemper Financial Services Money Market Fund 19,342,533 - 19,342,533 - 20,407,630 20,407,630 SEI Trust Benham Stable Asset Fund 32,616,595 - 32,616,595 - 5,692,213 5,692,213 Fidelity Investments Retirement Growth Fund 10,374,233 - 10,374,233 - 15,535,509 13,976,550 Fidelity Investments Retirement Government Money Market Fund 9,707,228 - 9,707,228 - 14,426,274 14,426,274 Fidelity Investments Equity Income Fund 10,941,685 - 10,941,685 - 10,935,610 6,545,260 Andrew Corporation Andrew Corporation Common Stock 920,471 - 920,471 - 32,832,812 250,736 CURRENT VALUE OF ASSET ON TRANSACTION DATE NET IDENTITY OF PARTY INVOLVED GAIN (LOSS) - ---------------------------------------------------------------------- Category (i) - Individual transaction - ------------------------------------- American Century Investments $23,529,987 $ - The Northern Trust Company 24,687,449 - 29,120,831 - 29,120,831 - 29,121,883 - LaSalle National Trust, N.A. 15,325,529 - SEI Trust 30,121,632 - Andrew Corporation 30,539,568 30,308,158 Category (iii) - Series of transactions in excess of 5% of plan assets - ---------------------------------------------------------------------- American Century Investments 25,543,321 - 275,917 (50,366) The Northern Trust Company 30,868,388 - 83,058,443 - LaSalle National Trust, N.A. 851,769 - 15,433,545 - Kemper Financial Services 19,342,533 - 20,407,630 - SEI Trust 32,616,595 - 5,692,213 - Fidelity Investments 10,374,233 - 15,535,509 1,558,959 Fidelity Investments 9,707,228 - 14,426,274 - Fidelity Investments 10,941,685 - 10,935,610 4,390,350 Andrew Corporation 920,471 - 32,832,812 32,582,076
14 There were no category (ii) or (iv) transactions during the year ended September 30, 1998. 20 Consent of Independent Auditors We consent to the incorporation by reference in the Registration Statement on Form S-8. (File No. 333-57273) pertaining to the Andrew Profit Sharing Plan of Andrew Corp. of our report dated February 24, 1999, with respect to the financial statements and schedules of the Andrew Profit Sharing Plan included in this Annual Report (Form 11-K) for the year ended September 30, 1998. Chicago, IL March 25, 1999 21 SIGNATURES The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the Administrative Committee, which administers the Plan, has duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized. ANDREW PROFIT SHARING PLAN By: ------------------------ Date: -----END PRIVACY-ENHANCED MESSAGE-----