-----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, EY+e5koS+GpLIU9P/YCm8HEAeEi7P5c61ovpYsMS8KzdcLqDlArwsylTWrj3LMsa EPbo+diGQIQASb28Btw1Hg== 0001047469-99-027162.txt : 19990714 0001047469-99-027162.hdr.sgml : 19990714 ACCESSION NUMBER: 0001047469-99-027162 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990713 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FLOW INTERNATIONAL CORP CENTRAL INDEX KEY: 0000713002 STANDARD INDUSTRIAL CLASSIFICATION: GENERAL INDUSTRIAL MACHINERY & EQUIPMENT, NEC [3569] IRS NUMBER: 911104842 STATE OF INCORPORATION: DE FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 000-12448 FILM NUMBER: 99663146 BUSINESS ADDRESS: STREET 1: 23500 64TH AVE S STREET 2: P O BOX 97040 CITY: KENT STATE: WA ZIP: 98032 BUSINESS PHONE: 2538503500 MAIL ADDRESS: STREET 1: 23500 64TH AVENUE SOUTH CITY: KENT STATE: WA ZIP: 98032 FORMER COMPANY: FORMER CONFORMED NAME: FLOW SYSTEMS INC DATE OF NAME CHANGE: 19890320 11-K 1 FORM 11K 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, 1998 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] For the transition period from ________ to _________ Commission file number 0-12448 Flow International Corporation Voluntary Pension and Salary Deferral Plan Flow International Corporation 23500 64th Ave. S. Kent, WA 98032 (253) 850-3500 FLOW INTERNATIONAL CORPORATION VOLUNTARY PENSION AND SALARY DEFERRAL PLAN FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES DECEMBER 31, 1998 FLOW INTERNATIONAL CORPORATION VOLUNTARY PENSION AND SALARY DEFERRAL PLAN FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES DECEMBER 31, 1998 INDEX
PAGE Report of independent accountants 1 Statement of net assets available for plan benefits 2 Statement of changes in net assets available for plan benefits 3 Notes to financial statements 4-14 SUPPLEMENTAL SCHEDULES (1) Schedule I - Schedule of assets held for investment purposes 15 Schedule II - Schedule of reportable transactions 16
(1) Other schedules required by Section 2520.103-10 of the Department of Labor's Rules and Regulations for Reporting and Disclosure under ERISA have been omitted because such schedules are not applicable. [PRICEWATERHOUSECOOPERS LETTERHEAD] REPORT OF INDEPENDENT ACCOUNTANTS To the Participants and Administrative Committee of the Flow International Corporation Voluntary Pension and Salary Deferral Plan In our opinion, the accompanying statement of net assets available for plan benefits and the related statement of changes in net assets available for plan benefits present fairly, in all material respects, the net assets available for plan benefits of the Flow International Corporation Voluntary Pension and Salary Deferral Plan at December 31, 1998 and 1997, and the changes in its net assets available for plan benefits for the year ended December 31, 1998, in conformity with generally accepted accounting principles. 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 of these statements in accordance with generally accepted auditing standards which 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, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information listed in the accompanying supplemental schedules is presented for purposes of additional analysis and is not a required part of the basic financial statements but is additional information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. /s/ PricewaterhouseCoopers PricewaterhouseCoopers LLP Seattle, Washington June 11, 1999 1 FLOW INTERNATIONAL CORPORATION VOLUNTARY PENSION AND SALARY DEFERRAL PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS - -------------------------------------------------------------------------------
DECEMBER 31, 1998 1997 ASSETS Cash $ 376,418 Investments, at market Large Company Fund $4,164,210 Small Company Fund 4,226,110 Alliance Premier Growth Fund Cl A 2,882,148 American Century 20th Ultra Advisor Fund 1,674,873 International Fund 3,201,141 GAM International Fund 1,102,914 Janus Worldwide Fund 2,075,447 Money Market Fund 1,105,798 Fidelity Advisor Prime Money Market Fund 2,046,330 Bond Fund 979,337 Portico Bond Fund 133,297 Firstar Bond Immdex. Fund 341,586 Gabelli Westwood Balanced Fund 954,867 Loomis Sayles Bond Fund Retail 423,066 MFS MA Investors Trust - Cl A Fund 816,478 Pimco Foreign Bond Fund Class A 203,230 Safeco Growth Fund 1,076,777 Stagecoach Lifepath 2010 Class A Fund 333,765 Stagecoach Lifepath 2020 Class A Fund 146,957 Stagecoach Lifepath 2030 Class A Fund 217,191 Stagecoach Lifepath 2040 Class A Fund 144,639 Vanguard 500 Fund 1,363,320 Vanguard Index 500 Fund 1,606,525 Vanguard Small Cap Fund 824,259 Vanguard Extended Market Porfolio Fund 369,091 FLOW Fund 365,015 588,938 Participant loans 272,882 88,518 Contributions receivable 241,861 134,748 Loan payments receivable 3,023 1,971 Interest and dividends receivable 255,007 114,926 ---------------- ---------------- $ 17,930,090 $ 16,926,573 ---------------- ---------------- ---------------- ---------------- LIABILITIES Accrued liabilities $ 4,054 $ 11,616 ---------------- ---------------- Net assets available for plan benefits $ 17,926,036 $ 16,914,957 ---------------- ---------------- ---------------- ----------------
The accompanying notes are an integral part of these financial statements. 2 FLOW INTERNATIONAL CORPORATION VOLUNTARY PENSION AND SALARY DEFERRAL PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS - -------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31, 1998 Additions to net assets attributed to: Investment income Net appreciation in fair value of investments $ 953,288 Interest 124,753 Dividends 452,801 ------------- 1,530,842 Employer contributions 773,875 Employee contributions 1,719,569 Participant rollovers from other qualified retirement plans 48,883 ------------- Total additions 4,073,169 ------------- ------------- Deductions from net assets attributed to: Benefits paid to participants 2,476,824 Distributions resulting from divestiture (Note 2) 435,738 Administrative expenses 149,528 ------------- Total deductions 3,062,090 ------------- Net increase 1,011,079 Net assets available for plan benefits: Beginning of year 16,914,957 ------------- End of year $ 17,926,036 ------------- -------------
The accompanying notes are an integral part of these financial statements. 3 FLOW INTERNATIONAL CORPORATION VOLUNTARY PENSION AND SALARY DEFERRAL PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 - -------------------------------------------------------------------------------- 1. DESCRIPTION OF THE PLAN The Flow International Corporation Voluntary Pension and Salary Deferral Plan (the Plan) is a defined contribution plan for the benefit of nonbargaining employees of Flow International Corporation (the Company), effective October 1, 1986. The Plan is administered by the Advisory Committee appointed by the Board of Directors of the Company. Qualified employees may elect to contribute any amount between 1% and 15% of their salary. For employees meeting certain employment criteria, the Company shall contribute an amount equal to 50% of the first 6% of employee compensation contributed for employees with less than five years of service with the Company or 75% of the first 6% of employee compensation contributed for employees with five years or more of service. Contributions to the Plan are paid to a trust administered by the plan trustees under the terms of a trust agreement. The funds must be used for the exclusive benefit of plan participants and their beneficiaries. Employees are eligible for participation in the Plan upon the first quarterly open enrollment period after commencement of employment and are eligible for the employer match one year following that date. Employer contributions and earnings thereon vest with individual participants based upon years of service with the Company; participants achieve 100% vesting after five years of service or at a normal retirement age. Unvested employer contributions relating to terminated participants are forfeited and used to reduce the Company's future contributions to the Plan. Participants are immediately vested in their voluntary contributions plus actual earnings thereon. Vested benefits are payable upon the retirement, death, disability or request at termination of a participant's employment with the Company. 2. SIGNIFICANT ACCOUNTING POLICIES VALUATION OF INVESTMENTS The accompanying financial statements have been prepared using the accrual basis of accounting. Deposit administration contracts (Note 4) are stated at contract value which approximates market value. Contract values represent contributions made under the contracts, plus interest on the contracts, less funds used to purchase annuities and pay related administrative expenses. Other investments are stated at the quoted market value. RECOGNITION OF INCOME AND EXPENSES Administrative expenses, including trustee and investment manager fees, are charged to the Plan and are reflected in these financial statements. These expenses totaled $149,528 for the year ended December 31, 1998. Investment transactions are recorded on the date of the purchase or sale. Gains or losses are determined based on the fair market value of investments on the date of a transaction. 4 FLOW INTERNATIONAL CORPORATION VOLUNTARY PENSION AND SALARY DEFERRAL PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 - -------------------------------------------------------------------------------- The Plan presents in the statement of changes in net assets available for plan benefits the net appreciation in the fair value of its investments which consists of the realized gains and losses and the unrealized appreciation and depreciation on those investments. ROLLOVERS The Plan allows transfers in from other qualified retirement plans. Rollovers or plan-to-plan transfers are included as a separate line item in the accompanying statement of changes in net assets available for plan benefits. PARTICIPANT LOANS The Plan provides loans to participants, which are considered a participant directed investment of their account. The loans represent a trust investment, but only the borrowing participants' accounts shall share in the interest paid on the loans or bear any expense or risk of loss because of the loans. Participant loans are secured by the vested portion of each borrower's account. The rate charged on the loan is the prime rate as of the date of the loan's approval. Net borrowings totaled $184,364 for the year ended December 31, 1998. TRANSFER OF PLAN ASSETS During 1997 the Company sold certain operating divisions. The Plan assets and obligations related to employees of these divisions were transferred out of the Plan to a successor plan. ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of additions to and deductions from net assets during the period. Actual results could differ from those estimates. 3. INVESTMENTS All plan investments are held in trust by Northwestern Trust and Investors Advisory Company (the Trustee). Prior to November 19, 1998, Plan participants directed their salary deferral and employer matching contributions to one or a combination of nine investment selections, known as the Large Company Fund, the Small Company Fund, the International Fund, the Money Market Fund, the Bond Fund, the Vanguard 500 Fund, the Vanguard Small Cap Fund, the Portico Bond Fund and the FLOW Fund. The Large Company Fund consists of two investment groups, Kunath, Karren, Rinne & Atkin and Morgan Stanley. Each of these investment groups invest in large companies that exhibit the potential for a high rate of earnings growth. The Small Company Fund consists of three investment groups, Crestone Capital Management, ICM Asset Management, and McKinley Capital Management. Each of these investment groups invest in stock of small to medium size companies that exhibit the potential for a high rate of earnings growth. The International Fund consists of the Euro-Pacific Growth Mutual Fund and the American Small Cap World Mutual Fund. Each of these funds invest in securities of companies located outside the United States. 5 FLOW INTERNATIONAL CORPORATION VOLUNTARY PENSION AND SALARY DEFERRAL PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 - -------------------------------------------------------------------------------- These funds are managed by American Funds. The Money Market Fund consists of investments in high-quality corporate and U.S. Government securities that have maturities of less than one year which are held in the Fidelity Institutional Cash Domestic Money Market Class 1 Fund. The Bond Fund invests in U.S. Government and Agency securities, corporate bonds issued by high-quality companies and deposit administration contracts with insurance companies. The Vanguard 500 Fund invests in securities included in the S&P 500 Index. The Vanguard Small Cap Fund consists of stock of small to medium size companies included in the Russell 2000 Index. The Portico Bond Fund consists primarily of fixed income securities with an average portfolio maturity of greater than five years. The FLOW Fund consists of FLOW International Corporation common stock which is publicly traded in the NASDAQ National Market. The investment in FLOW stock is managed directly by the Trustee. Effective November 19, 1998 the investment selections changed and plan participants began directing their salary deferral and employer matching contributions to one or a combination of eighteen investment selections, known as the Alliance Premier Growth Fund Class A, the American Century 20th Ultra Advisor Fund, the GAM International Fund, the Janus Worldwide Fund, the Fidelity Advisor Prime Money Market Fund, the Firstar Bond Immdex. Fund, the Gabelli Westwood Balanced Fund, the Loomis Sayles Bond Fund Retail, the MFS MA Investors Trust Class A Fund, the PIMCO Foreign Bond Fund Class A, the Safeco Growth Fund, the Stagecoach Lifepath 2010 Class A Fund, the Stagecoach Lifepath 2020 Class A Fund, the Stagecoach Lifepath 2030 Class A Fund, the Stagecoach Lifepath 2040 Class A Fund, the Vanguard Index 500 Fund, the Vanguard Extended Market Portfolio Fund and the FLOW fund described above. The Alliance Premier Growth Fund Class A and the American Century Ultra Advisor funds consist of investments in large companies that exhibit the potential for a high rate of earnings growth. The GAM International fund consists of investments in securities of companies located outside the United States. The Janus Worldwide Fund invests primarily in foreign and domestic common stocks. The Fidelity Advisor Prime Money Market Fund consists of investments in U.S. dollar denominated money market securities of domestic and foreign issuers, government securities and repurchase agreements. The Firstar Bond Immdex. Fund consists of investments in fixed-income securities with a dollar-weighted average portfolio maturity of more than five years. The Gabelli Westwood Balanced Fund consists of investments in common stocks or convertibles issued by seasoned companies with above-average historical earnings growth, or by smaller companies with outstanding potential for capital appreciation and in investment-grade U.S. dollar or foreign currency-denominated debt. The Loomis Sayles Bond Fund Retail consists of investments in debt securities and preferred stocks which provide investment return through a combination of current income and capital appreciation. The MFS MA Investors Trust Class A Fund consists of investments in common stocks and convertibles, emphasizing securities that management considers to be of high or improving quality. The PIMCO Foreign Bond Fund Class A consists of investments in fixed-income securities issued in at least three foreign countries. The SAFECO Growth Fund consists of investments in common stocks selected primarily for their capital appreciation potential. The Stagecoach Lifepath 2010, 2020, 2030 and 2040 Class A funds consist of investments in a mix of equities, debt securities and cash. The investment mix or allocation for each fund is dependent upon the projected year of retirement; 2010, 2020, 2030 or 6 FLOW INTERNATIONAL CORPORATION VOLUNTARY PENSION AND SALARY DEFERRAL PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 - -------------------------------------------------------------------------------- 2040 and becomes more conservative as the fund nears its maturation. The Vanguard Index 500 Fund consists of investments in securities included in the S&P 500 Index. The Vanguard Extended Market Portfolio Fund consists of investments in a statistically selected sample of more than 5,000 medium and small capitalization stocks included in the Wilshire 4500 Index. Participants may transfer balances between funds as well as change the investment allocation daily. 7 FLOW INTERNATIONAL CORPORATION VOLUNTARY PENSION AND SALARY DEFERRAL PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 - -------------------------------------------------------------------------------- Changes in net assets available for plan benefits by investment account for the year ended December 31, 1998:
LARGE SMALL MONEY VANGUARD COMPANY COMPANY INTERNATIONAL MARKET BOND 500 FUND FUND FUND FUND FUND FUND SUBTOTAL Additions to net assets attributed to Investment income Net appreciation (depreciation) in fair value of investments $ (107,630) $ (260,470) $ 146,070 $ (36) $ 212,300 $ (9,766) Interest 10,367 25,960 1,319 $ 47,120 28,410 113,176 Dividends 41,833 16,880 57,355 13,314 38,537 167,919 ----------- ----------- ----------- ------------ ---------- ----------- ----------- (55,430) (217,630) 204,744 47,120 41,688 250,837 271,329 Employer contributions 131,022 136,908 110,567 24,981 31,443 75,987 510,908 Employee contributions 281,044 307,869 232,046 49,652 59,818 190,998 1,121,427 Participant rollovers from other qualified retirement plans 6,873 7,617 4,896 7,736 3,371 30,493 ----------- ----------- ----------- ------------ ---------- ----------- ----------- Total additions 363,509 234,764 552,253 121,753 140,685 521,193 1,934,157 ----------- ----------- ----------- ------------ ---------- ----------- ----------- Participant transfers, net (3,821,967) (3,906,682) (3,187,298) (1,030,227) (852,172) (1,618,483) (14,416,829) ----------- ----------- ----------- ------------ ---------- ----------- ----------- Loan transactions, net (22,186) (21,274) (18,413) (655) (1,105) - (63,633) ----------- ----------- ----------- ------------ ---------- ----------- ----------- Deductions from net assets attributed to Benefits paid to participants 616,846 423,543 504,712 203,810 72,248 323,631 2,144,790 Distributions resulting from divesture 80,116 69,225 62,452 1,939 216,334 430,066 Administrative expenses 34,137 69,577 8,740 3,511 3,213 4,989 124,167 ----------- ----------- ----------- ------------ ---------- ----------- ----------- Total deductions 731,099 562,345 575,904 209,260 291,795 328,620 2,699,023 ----------- ----------- ----------- ------------ ---------- ----------- ----------- Net increase (decrease) (4,211,743) (4,255,537) (3,229,362) (1,118,389) (1,004,387) (1,425,910) (15,245,328) Net assets available for plan benefits Beginning of year 4,211,743 4,255,537 3,229,362 1,118,389 1,004,387 1,425,910 15,245,328 ----------- ----------- ----------- ------------ ---------- ----------- ----------- End of year $ - $ - $ - $ - $ - $ - $ - ----------- ----------- ----------- ------------ ---------- ----------- -----------
8 FLOW INTERNATIONAL CORPORATION VOLUNTARY PENSION AND SALARY DEFERRAL PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 - -------------------------------------------------------------------------------- Changes in net assets available for plan benefits by investment account for the year ended December 31, 1998 (continued):
VANGUARD PORTICO CARRY-FORWARD SMALL CAP BOND FLOW PARTICIPANT SUBTOTAL FUND FUND FUND LOANS SUBTOTAL Additions to net assets attributed to Investment income Net appreciation (depreciation) in fair value of investments $ (9,766) $ (115,938) $ 2,376 $ 8,360 $ (301) $ (115,269) Interest 113,176 476 111 158 18 113,939 Dividends 167,919 5,782 10,107 183,808 --------------- ------------ ----------- ------------ ----------- ------------ 271,329 (109,680) 12,594 8,518 (283) 182,478 Employer contributions 510,908 40,420 5,428 31,016 587,772 Employee contributions 1,121,427 101,873 11,950 76,408 1,311,658 Participant rollovers from other qualified retirement plans 30,493 818 449 31,760 --------------- ------------ ----------- ------------ ----------- ------------ Total additions 1,934,157 33,431 29,972 116,391 (283) 2,113,668 --------------- ------------ ----------- ------------ ----------- ------------ Participant transfers, net (14,416,829) (749,835) (46,361) (235,881) (15,448,906) --------------- ------------ ----------- ------------ ----------- ------------ Loan transactions, net (63,633) (6,168) (1,047) 184,647 113,799 --------------- ------------ ----------- ------------ ----------- ------------ Deductions from net assets attributed to Benefits paid to participants 2,144,790 140,891 93,714 97,429 2,476,824 Distributions resulting from divesture 430,066 5,672 435,738 Administrative expenses 124,167 4,989 1,211 1,921 132,288 --------------- ------------ ----------- ------------ ----------- ------------ Total deductions 2,699,023 151,552 94,925 99,350 - 3,044,850 --------------- ------------ ----------- ------------ ----------- ------------ Net increase (decrease) (15,245,328) (874,124) (111,314) (219,887) 184,364 (16,266,289) Net assets available for plan benefits Beginning of year 15,245,328 874,124 111,314 595,673 88,518 16,914,957 --------------- ------------ ----------- ------------ ----------- ------------ End of year $ - $ - $ - $ 375,786 $ 272,882 $ 648,668 --------------- ------------ ----------- ------------ ----------- ------------
9 FLOW INTERNATIONAL CORPORATION VOLUNTARY PENSION AND SALARY DEFERRAL PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 - -------------------------------------------------------------------------------- Changes in net assets available for plan benefits by investment account for the year ended December 31, 1998 (continued):
FIDELITY FIRSTAR GAM JANUS CARRY-FORWARD ADVISOR PRIME BOND INTERNATIONAL WORLDWIDE SUBTOTAL MM FUND IMMDEX. INST. FUND FUND SUBTOTAL Additions to net assets attributed to Investment income Net appreciation (depreciation) in fair value of investments $ (115,269) $ 1,892 $ 76,858 $ 232,222 $ 195,703 Interest 113,939 $ 10,814 124,753 Dividends 183,808 3,689 7,923 195,420 ------------ ----------- ----------- ------------- ------------- ------------- 182,478 10,814 5,581 76,858 240,145 515,876 Employer contributions 587,772 10,499 3,205 15,885 27,191 644,552 Employee contributions 1,311,658 18,732 5,992 34,076 61,003 1,431,461 Participant rollovers from other qualified retirement plans 31,760 15,013 46,773 ------------ ----------- ----------- ------------- ------------- ------------- Total additions 2,113,668 55,058 14,778 126,819 328,339 2,638,662 ------------ ----------- ----------- ------------- ------------- ------------- Participant transfers, net (15,448,906) 2,012,281 334,800 1,010,078 1,805,519 (10,286,228) ------------ ----------- ----------- ------------- ------------- ------------- Loan transactions, net 113,799 (271) (142) (13,351) (13,683) 86,352 ------------ ----------- ----------- ------------- ------------- ------------- Deductions from net assets attributed to Benefits paid to participants 2,476,824 2,476,824 Distributions resulting from divesture 435,738 435,738 Administrative expenses 132,288 2,101 351 1,132 2,131 138,003 ------------ ----------- ----------- ------------- ------------- ------------- Total deductions 3,044,850 2,101 351 1,132 2,131 3,050,565 ------------ ----------- ----------- ------------- ------------- ------------- Net increase (decrease) (16,266,289) 2,064,967 349,085 1,122,414 2,118,044 (10,611,779) Net assets available for plan benefits Beginning of year 16,914,957 16,914,957 ------------ ----------- ----------- ------------- ------------- ------------- End of year $ 648,668 $2,064,967 $ 349,085 $1,122,414 $ 2,118,044 $ 6,303,178 ------------ ----------- ----------- ------------- ------------- -------------
10 FLOW INTERNATIONAL CORPORATION VOLUNTARY PENSION AND SALARY DEFERRAL PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 - -------------------------------------------------------------------------------- Changes in net assets available for plan benefits by investment account for the year ended December 31, 1998 (continued):
GABELLI LOOMIS PIMCO MFS CARRY-FORWARD WESTWOOD SAYLES BOND FOREIGN MA INVESTORS SUBTOTAL BAL. FUND FUND BOND FUND TRUST FUND SUBTOTAL Additions to net assets attributed to Investment income Net appreciation (depreciation) in fair value of investments $ 195,703 $ 32,873 $ (8,976) $ (2,295) $ 22,595 $ 239,900 Interest 124,753 124,753 Dividends 195,420 15,344 25,388 32,488 268,640 ------------ ----------- ------------ --------- ------------ -------------- 515,876 48,217 16,412 (2,295) 55,083 633,293 Employer contributions 644,552 6,061 2,505 2,306 10,585 666,009 Employee contributions 1,431,461 11,879 5,989 5,093 22,757 1,477,179 Participant rollovers from other qualified retirement plans 46,773 2,110 48,883 ------------ ----------- ------------ --------- ------------ -------------- Total additions 2,638,662 66,157 24,906 7,214 88,425 2,825,364 ------------ ----------- ------------ --------- ------------ -------------- Participant transfers, net (10,286,228) 911,602 402,000 199,051 796,359 (7,977,216) ------------ ----------- ------------ --------- ------------ -------------- Loan transactions, net 86,352 (69) (17,733) 68,550 ------------ ----------- ------------ --------- ------------ -------------- Deductions from net assets attributed to Benefits paid to participants 2,476,824 2,476,824 Distributions resulting from divesture 435,738 435,738 Administrative expenses 138,003 980 434 208 838 140,463 ------------ ----------- ------------ --------- ------------ -------------- Total deductions 3,050,565 980 434 208 838 3,053,025 ------------ ----------- ------------ --------- ------------ -------------- Net increase (decrease) (10,611,779) 976,779 426,403 206,057 866,213 (8,136,327) Net assets available for plan benefits Beginning of year 16,914,957 16,914,957 ------------ ----------- ------------ --------- ------------ -------------- End of year $ 6,303,178 $ 976,779 $ 426,403 $206,057 $ 866,213 $ 8,778,630 ------------ ----------- ------------ --------- ------------ --------------
11 FLOW INTERNATIONAL CORPORATION VOLUNTARY PENSION AND SALARY DEFERRAL PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 - -------------------------------------------------------------------------------- Changes in net assets available for plan benefits by investment account for the year ended December 31, 1998 (continued):
STAGECOACH STAGECOACH STAGECOACH STAGECOACH CARRY-FORWARD LIFEPATH LIFEPATH LIFEPATH LIFEPATH SUBTOTAL 2010A FUND 2020A FUND 2030A FUND 2040A FUND SUBTOTAL Additions to net assets attributed to Investment income Net appreciation (depreciation) in fair value of investments $ 239,900 $ (6,705) $ (3,460) $ (779) $ (303) $ 228,653 Interest 124,753 124,753 Dividends 268,640 22,335 12,781 16,581 12,879 333,216 ------------ ------------ --------- --------- --------- ----------- 633,293 15,630 9,321 15,802 12,576 686,622 Employer contributions 666,009 1,878 3,152 2,108 2,098 675,245 Employee contributions 1,477,179 3,165 5,548 4,198 4,511 1,494,601 Participant rollovers from other qualified retirement plans 48,883 48,883 ------------ ------------ --------- --------- --------- ----------- Total additions 2,825,364 20,673 18,021 22,108 19,185 2,905,351 ------------ ------------ --------- --------- --------- ----------- Participant transfers, net (7,977,216) 337,700 145,639 214,474 141,227 (7,138,176) ------------ ------------ --------- --------- --------- ----------- Loan transactions, net 68,550 68,550 ------------ ------------ --------- --------- --------- ----------- Deductions from net assets attributed to Benefits paid to participants 2,476,824 2,476,824 Distributions resulting from divesture 435,738 435,738 Administrative expenses 140,463 343 151 222 149 141,328 ------------ ------------ --------- --------- --------- ----------- Total deductions 3,053,025 343 151 222 149 3,053,890 ------------ ------------ --------- --------- --------- ----------- Net increase (decrease) (8,136,327) 358,030 163,509 236,360 160,263 (7,218,165) Net assets available for plan benefits Beginning of year 16,914,957 16,914,957 ------------ ------------ --------- --------- --------- ----------- End of year $ 8,778,630 $ 358,030 $ 163,509 $ 236,360 $ 160,263 $ 9,696,792 ------------ ------------ --------- --------- --------- -----------
12 FLOW INTERNATIONAL CORPORATION VOLUNTARY PENSION AND SALARY DEFERRAL PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 - ------------------------------------------------------------------------------- Changes in net assets available for plan benefits by investment account for the year ended December 31, 1998 (continued):
ALLIANCE AMERICAN VANGUARD CARRY-FORWARD PREMIER CENTURY INDEX 500 SUBTOTAL GROWTH FUND 20TH UAC FUND FUND Additions to net assets attributed to Investment income Net appreciation (depreciation) in fair value of investments $ 228,653 $ 375,834 $ 80,484 $ 205,943 Interest 124,753 Dividends 333,216 54,429 11,478 -------------- --------------- --------------- -------------- 633,293 430,263 80,484 217,421 Employer contributions 675,245 33,416 23,767 22,926 Employee contributions 1,494,601 72,366 58,965 49,422 Participant rollovers from other qualified retirement plans 48,883 -------------- --------------- --------------- -------------- Total additions 2,825,364 536,045 163,216 289,769 -------------- --------------- --------------- -------------- Participant transfers, net (7,138,176) 2,467,794 1,559,891 1,352,318 -------------- --------------- --------------- -------------- Loan transactions, net 68,550 (20,980) (14,737) (5,310) -------------- --------------- --------------- -------------- Deductions from net assets attributed to Benefits paid to participants 2,476,824 Distributions resulting from divesture 435,738 Administrative expenses 141,328 3,044 1,720 1,952 -------------- --------------- --------------- -------------- Total deductions 3,053,025 3,044 1,720 1,952 -------------- --------------- --------------- -------------- Net increase (decrease) (8,136,327) 2,979,815 1,706,650 1,634,825 Net assets available for plan benefits Beginning of year 16,914,957 -------------- --------------- --------------- -------------- End of year $ 8,778,630 $ 2,979,815 $ 1,706,650 $ 1,634,825 -------------- --------------- --------------- -------------- VANGUARD SAFECO CASH EXT. MKT. GROWTH AND CASH FUND FUND EQUIVALENTS TOTAL Additions to net assets attributed to Investment income Net appreciation (depreciation) in fair value of investments $ 9,831 $ 52,543 $ 953,288 Interest 124,753 Dividends 22,742 30,936 452,801 ------------- --------------- --------------- 32,573 83,479 1,530,842 Employer contributions 4,685 13,836 773,875 Employee contributions 11,628 32,587 1,719,569 Participant rollovers from other qualified retirement plans 48,883 ------------- --------------- --------------- Total additions 48,886 129,902 4,073,169 ------------- --------------- --------------- Participant transfers, net 358,440 1,023,315 $ 376,418 - ------------- --------------- -------------- --------------- Loan transactions, net (4,875) (22,648) - ------------- --------------- -------------- --------------- Deductions from net assets attributed to Benefits paid to participants 2,476,824 Distributions resulting from divesture 435,738 Administrative expenses 379 1,105 149,528 ------------- --------------- -------------- --------------- Total deductions 379 1,105 - 3,062,090 ------------- --------------- -------------- --------------- Net increase (decrease) 402,072 1,129,464 376,418 1,011,079 Net assets available for plan benefits Beginning of year 16,914,957 ------------- --------------- -------------- --------------- End of year $ 402,072 $ 1,129,464 $ 376,418 $17,926,036 ------------- --------------- -------------- ---------------
13 FLOW INTERNATIONAL CORPORATION VOLUNTARY PENSION AND SALARY DEFERRAL PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 - ------------------------------------------------------------------------------- 4. DEPOSIT ADMINISTRATION CONTRACTS WITH INSURANCE COMPANIES As of December 31, 1997, the Plan had deposit administration contracts with Ameritas Financial Services and Aetna Life Insurance and Annuity Company, which were included in the Bond Fund and totaled $122,672 and $424,941, respectively. During the year ended December 31, 1998, the Plan's investment selections were changed and all deposit administration contracts were sold. 5. FEDERAL INCOME TAXES The Plan received an updated favorable determination letter from the Internal Revenue Service dated February 10, 1995 as to the qualified status of the Plan. The Company is of the opinion that the Plan continues to fulfill the requirements of a qualified plan under Section 401(a) of the Internal Revenue Code and that the trust which forms a part of the Plan is not subject to tax. Accordingly, no provision for federal or state income taxes has been provided. 6. BENEFIT OBLIGATIONS The Plan has properly excluded obligations totaling $0 and $195,186 for benefits payable to participants who have withdrawn from the Plan but were not paid at December 31, 1998 and 1997, respectively. This exclusion results in a difference between the Plan's financial statements and the Plan's December 31, 1997 Form 5500. 14 SUPPLEMENTAL SCHEDULES FLOW INTERNATIONAL CORPORATION VOLUNTARY PENSION AND SALARY DEFERRAL PLAN ADDITIONAL INFORMATION - SCHEDULE I SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1998 - -------------------------------------------------------------------------------
DESCRIPTION COST FAIR VALUE Alliance Premier Growth Fund Class A $2,504,499 $2,882,148 American Century 20th Ultra Advisor Class Fund 1,594,873 1,674,873 Fidelity Advisor Prime Money Market Fund 2,046,330 2,046,330 Firstar Bond Immdex Fund 340,027 341,586 FLOW Fund FLOW International Common Stock 365,350 365,015 Gabelli Westwood Balanced Fund 924,446 954,867 GAM International Fund 1,026,817 1,102,914 Janus Worldwide Fund 1,844,003 2,075,447 Loomis Sayles Bond Fund Retail 430,670 423,066 MFS MA Investors Trust - Class A Fund 793,608 816,478 Pimco Foreign Bond Fund Class A 205,191 203,230 Safeco Growth Fund 1,025,616 1,076,777 Stagecoach Lifepath 2010 Class A Fund 340,470 333,765 Stagecoach Lifepath 2020 Class A Fund 150,398 146,957 Stagecoach Lifepath 2030 Class A Fund 217,970 217,191 Stagecoach Lifepath 2040 Class A Fund 144,942 144,639 Vanguard Extended Market Portfolio 359,448 369,091 Vanguard Index 500 Fund 1,396,171 1,606,525 Participant loans Due through 9/18/2016 Interest rates 8.5%-9% 272,882 272,882
15 FLOW INTERNATIONAL CORPORATION VOLUNTARY PENSION AND SALARY DEFERRAL PLAN ADDITIONAL INFORMATION - SCHEDULE II SCHEDULE OF REPORTABLE TRANSACTIONS YEAR ENDED DECEMBER 31, 1998 - -------------------------------------------------------------------------------
COST OF SALES/ ASSETS SOLD/ GAIN/ PURCHASES MATURITIES MATURED (LOSS) Series of transactions with respect to securities when aggregated, involving in excess of 5% of the current value of plan assets at the beginning of the plan year Fidelity Inst. Cash Domestic MMkt Class 1 $ 18,074,837 $ 19,589,138 $ 19,589,138 Alliance Premier Growth Fund Class A 2,921,951 42,618 39,803 $ 2,815 American Century 20th Ultra Advisor Class Fund 1,684,015 9,626 9,142 484 Europacific Growth Fund 312,039 2,844,393 2,693,269 151,124 Fidelity Advisor Prime Money Market Fund 2,055,986 9,656 9,656 Gabelli Westwood Balanced Fund 1,046,192 93,777 91,325 2,452 GAM International Fund 1,130,383 28,228 27,469 759 Janus Worldwide Fund 2,089,492 14,824 14,045 779 Safeco Growth Fund 1,137,441 62,139 60,664 1,475 Smallcap World Fund 127,072 902,091 936,234 (34,143) Van Kampen Morgan Stanley Value Fund Class A 2,268,482 2,326,885 (58,403) Vanguard Small Cap Fund 449,217 1,157,723 1,273,476 (115,753) Vanguard Index 500 Fund 1,662,721 1,726,519 1,419,516 307,003
16 EX-23.1 2 EXHIBIT 23.1 Exhibit 23.1 CONSENT OF INDEPENDENT ACCOUNTANTS We hereby consent to the incorporation by reference in the Prospectus constituting part of the Registration Statement on Form S-3 (No. 33-57100) and in the Registration Statements on Form S-8 (No. 33-40397 and No. 33-44776) of Flow International Corporation of our report dated June 11, 1999 appearing on page 4 of this Form 11-K. PricewaterhouseCoopers LLP Seattle, Washington June 11, 1999 -----END PRIVACY-ENHANCED MESSAGE-----