-----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, DvD70DYpxwagv+0o9xpJI4z6kIFyuFYDqjTp1bXS3M2PPydUO74kodE21lF3cite JOPoAHnSUP95PRFjJYogSw== 0001047469-98-025711.txt : 19980630 0001047469-98-025711.hdr.sgml : 19980630 ACCESSION NUMBER: 0001047469-98-025711 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980629 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: IMMUNEX CORP /DE/ CENTRAL INDEX KEY: 0000719529 STANDARD INDUSTRIAL CLASSIFICATION: BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836] IRS NUMBER: 510346580 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 000-12406 FILM NUMBER: 98656144 BUSINESS ADDRESS: STREET 1: 51 UNIVERSITY ST CITY: SEATTLE STATE: WA ZIP: 98101 BUSINESS PHONE: 2065870430 MAIL ADDRESS: STREET 1: 51 UNIVERSITY STREET CITY: SEATLE STATE: WA ZIP: 98101 11-K 1 FORM 11-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 11-K (MARK ONE) (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 1997 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM __________ TO __________ Commission File Number 0-12406 IMMUNEX CORPORATION PROFIT SHARING 401(k) PLAN AND TRUST (Full title of the plan) IMMUNEX CORPORATION (Exact name of registrant as specified in its charter) 51 University Street Seattle, WA 98101 (Address of principal executive offices) Immunex Corporation Profit Sharing 401(k) Plan and Trust Financial Statements and Supplemental Schedules December 31, 1997, 1996, and 1995
CONTENTS Report of Independent Auditors.................................................... 1 Audited Financial Statements Statements of Assets Available for Benefits with Fund Information................. 2 Statements of Changes in Assets Available for Benefits with Fund Information...... 3 Notes to Financial Statements..................................................... 7 Supplemental Schedules Line 27a - Schedule of Assets Held for Investment Purposes........................ 16 Line 27d - Schedule of Reportable Transactions.................................... 17
Report of Independent Auditors The Administrative Committee Immunex Corporation Profit Sharing 401(k) Plan and Trust We have audited the accompanying statements of assets available for benefits of Immunex Corporation Profit Sharing 401(k) Plan and Trust (the Plan) as of December 31, 1997 and 1996, and the related statement of changes in assets available for benefits for each of the three years in the period 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. These 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, assets available for benefits of the Plan at December 31, 1997 and 1996, and the changes in its assets available for benefits for each of the three years in the period ended December 31, 1997, in conformity with generally accepted accounting principles. Our audits were performed 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 December 31, 1997 and of reportable transactions for the year then ended are presented for the 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 basic financial statements. The Fund Information in the statements of assets available for benefits and the statements of changes in assets available for benefits is presented for purposes of additional analysis rather than to present the assets available for benefits and changes in 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 the financial statements taken as a whole. The information presented in the schedule of assets held for investment purposes does not disclose the historical cost of investments. Also, the information presented in the schedule of reportable transactions does not disclose the cost of sales transactions and the related net gain or loss. Disclosure of historical cost information is required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. ERNST & YOUNG LLP Seattle, Washington April 29, 1998 Immunex Corporation Profit Sharing 401(k) Plan and Trust Statements of Assets Available for Benefits with Fund Information
SCHWAB FIDELITY PIMCO DODGE & SCHWAB INST. ADV. GROWTH AND TOTAL COX DECEMBER 31, 1997 CASH MONEY INCOME RETURN BALANCED ---------------------------------------------------------------------------- ASSETS Investments, at fair value: Interest-bearing cash $ 187,274 $ 690,840 $ - $ - $ - Mutual funds - - 18,903,724 399,895 3,446,010 Corporate stock - common - - - - - Participant loans - - - - - ---------------------------------------------------------------------------- Total investments 187,274 690,840 18,903,724 399,895 3,446,010 Transfers (182,103) 2,232 63,832 2,723 13,315 ---------------------------------------------------------------------------- Assets available for benefits $ 5,171 $ 693,072 $ 18,967,556 $ 402,618 $ 3,459,325 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- CRABBE RAINIER HUSON SMALL/MID CORE CAPITAL EUROPACIFIC IMMUNEX PARTICIPANT DECEMBER 31, 1997 EQUITY EQUITY GROWTH STOCK LOANS TOTAL ------------------------------------------------------------------------------------------ ASSETS Investments, at fair value: Interest-bearing cash $ - $ - $ - $ $ - $ 878,114 Mutual funds 5,683,517 10,163,905 3,978,525 - - 42,575,576 Corporate stock - common - - - 1,280,934 - 1,280,934 Participant loans - - - - 707,484 707,484 ------------------------------------------------------------------------------------------ Total investments 5,683,517 10,163,905 3,978,525 1,280,934 707,484 45,442,108 Transfers 25,120 47,458 26,233 10,302 (9,112) 0 ------------------------------------------------------------------------------------------ Assets available for benefits $ 5,708,637 $ 10,211,363 $ 4,004,758 $ 1,291,236 $ 698,372 $ 45,442,108 ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Immunex Corporation Profit Sharing 401(k) Plan and Trust Statements of Assets Available for Benefits with Fund Information (continued) DECEMBER 31, 1996 ASSETS Investments, at fair value: Interest-bearing cash $ 28,052 $ 526,396 $ - $ - $ - Mutual funds - - 13,643,757 200,849 2,529,578 Corporate stock - common - - - - - Participant loans - - - - - ---------------------------------------------------------------------------- Total investments 28,052 526,396 13,643,757 200,849 2,529,578 Receivables: Employee contributions - 282 37,648 1,686 7,199 Employer contributions (11,841) 687 14,476 799 1,313 Accrued income on investments - - - 1,050 - ---------------------------------------------------------------------------- Assets available for benefits $ 16,211 $ 527,365 $ 13,695,881 $ 204,384 $ 2,538,090 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- DECEMBER 31, 1996 ASSETS Investments, at fair value: Interest-bearing cash $ - $ - $ - $ 9 $ - $ 554,457 Mutual funds 4,165,279 6,575,910 3,022,015 - - 30,137,388 Corporate stock - common - - - 141,082 - 141,082 Participant loans - - - - 542,163 542,163 ------------------------------------------------------------------------------------------ Total investments 4,165,279 6,575,910 3,022,015 141,091 542,163 31,375,090 Receivables: Employee contributions 16,357 27,063 17,456 1,757 (7,853) 101,595 Employer contributions 6,619 14,061 6,006 704 - 32,824 Accrued income on investments - - - - - 1,050 ------------------------------------------------------------------------------------------ Assets available for benefits $ 4,188,255 $ 6,617,034 $ 3,045,477 $ 143,552 $ 534,310 $ 31,510,559 ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES. Immunex Corporation Profit Sharing 401(k) Plan and Trust Statements of Changes in Assets Available for Benefits with Fund Information
SCHWAB FIDELITY PIMCO DODGE & SCHWAB INST. ADV. GROWTH AND TOTAL COX YEAR ENDED DECEMBER 31, 1997 CASH MONEY INCOME RETURN BALANCED --------------------------------------------------------------------------- ADDITIONS Investment income: Interest $ 205 $ - $ - $ - $ - Dividends - 31,562 846,674 17,686 261,991 Net realized and unrealized appreciation (depreciation) - - 3,421,134 2,890 308,843 --------------------------------------------------------------------------- Total investment income 205 31,562 4,267,808 20,576 570,834 Contributions: Employer - 21,762 610,064 29,032 124,560 Employee - 48,288 1,368,241 59,100 265,962 Rollovers (11,245) 184 234,644 15,674 87,648 --------------------------------------------------------------------------- Total contributions (11,245) 70,234 2,212,949 103,806 478,170 --------------------------------------------------------------------------- Total additions (11,040) 101,796 6,480,757 124,382 1,049,004 DEDUCTIONS Benefits paid to participants - (21,586) (724,541) (2,173) (137,241) Administrative expenses - (475) (3,448) (164) (790) --------------------------------------------------------------------------- Total deductions 0 (22,061) (727,989) (2,337) (138,031) Net transfers (to) from other funds - 85,972 (481,093) 76,189 10,262 --------------------------------------------------------------------------- Increase (decrease) in assets available for benefits (11,040) 165,707 5,271,675 198,234 921,235 Assets available for benefits: Beginning of year 16,211 527,365 13,695,881 204,384 2,538,090 --------------------------------------------------------------------------- End of year $ 5,171 $ 693,072 $ 18,967,556 $ 402,618 $ 3,459,325 --------------------------------------------------------------------------- --------------------------------------------------------------------------- Immunex Corporation Profit Sharing 401(k) Plan and Trust Statements of Changes in Assets Available for Benefits with Fund Information (continued) CRABBE RAINIER HUSON SMALL/MID CORE CAPITAL EUROPACIFIC IMMUNEX PARTICIPANT YEAR ENDED DECEMBER 31, 1997 EQUITY EQUITY GROWTH STOCK LOANS TOTAL ------------------------------------------------------------------------------------------- ADDITIONS Investment income: Interest $ - $ - $ - $ - $ 59,192 $ 59,397 Dividends 1,148,362 941,906 337,866 - - 3,586,047 Net realized and unrealized appreciation (27,570) 1,426,629 (37,425) 453,535 - 5,548,036 ------------------------------------------------------------------------------------------- (depreciation) Total investment income 1,120,792 2,368,535 300,441 453,535 59,192 9,193,480 Contributions: Employer 257,278 473,532 251,754 49,331 - 1,817,313 Employee 566,547 1,055,779 571,624 112,761 - 4,048,302 Rollovers 71,310 176,548 93,535 81,125 - 749,423 ------------------------------------------------------------------------------------------- Total contributions 895,135 1,705,859 916,913 243,217 0 6,615,038 ------------------------------------------------------------------------------------------- Total additions 2,015,927 4,074,394 1,217,354 696,752 59,192 15,808,518 DEDUCTIONS Benefits paid to participants (225,960) (460,255) (194,050) (40,988) (60,826) (1,867,620) Administrative expenses (1,506) (2,176) (790) - - (9,349) ------------------------------------------------------------------------------------------- Total deductions (227,466) (462,431) (194,840) (40,988) (60,826) (1,876,969) Net transfers (to) from other funds (268,079) (17,634) (63,233) 491,920 165,696 0 ------------------------------------------------------------------------------------------- Increase (decrease) in assets available for benefits 1,520,382 3,594,329 959,281 1,147,684 164,062 13,931,549 Assets available for benefits: Beginning of year 4,188,255 6,617,034 3,045,477 143,552 534,310 31,510,559 ------------------------------------------------------------------------------------------- End of year $ 5,708,637 $ 10,211,363 $ 4,004,758 $ 1,291,236 $ 698,372 $ 45,442,108 ------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------
Immunex Corporation Profit Sharing 401(k) Plan and Trust Statements of Changes in Assets Available for Benefits with Fund Information (continued)
INVESCO STRATEGIC FIDELITY HEALTH GROWTH AND BALANCED PRINCIPAL SCHWAB IMMUNEX YEAR ENDED DECEMBER 31, 1996 SCIENCES INCOME JANUS PORTFOLIO PRESERVATION CASH STOCK ------------------------------------------------------- ------------------------------------ ADDITIONS Investment income: Interest $ 2,255 $ 13,328 $ 3,825 $ 46,824 $ 34,206 $ 4,103 $ - Dividends - 688,327 - 13,598 - - - Net realized and unrealized appreciation (depreciation) 128,766 1,661,788 414,956 166,968 (20,105) - 41,268 ------------------------------------------------------- ------------------------------------ Total investment income 131,021 2,363,443 418,781 227,390 14,101 4,103 41,268 Contributions: Employer 123,733 749,688 203,030 102,842 28,989 - 11,301 Employee 271,681 1,619,107 442,649 203,379 58,273 - 25,596 Rollovers 55,234 145,775 54,111 33,166 9,927 12,108 111 ------------------------------------------------------- ------------------------------------ Total contributions 450,648 2,514,570 699,790 339,387 97,189 12,108 37,008 ------------------------------------------------------- ------------------------------------ Total additions 581,669 4,878,013 1,118,571 566,777 111,290 16,211 78,276 DEDUCTIONS Benefits paid to participants (145,804) (1,294,551) (333,557) (206,691) (108,820) - (183) Administrative expenses - (559) - (16,313) (1,268) - - ------------------------------------------------------- ------------------------------------ Total deductions (145,804) (1,295,110) (333,557) (223,004) (110,088) 0 (183) Net transfers (to) from other funds (2,464,540) (2,927,911) (4,634,405) (3,524,352) (1,038,972) - 65,459 ------------------------------------------------------- ------------------------------------ Increase (decrease) in assets available for benefits (2,028,675) 654,992 (3,849,391) (3,180,579) (1,037,770) 16,211 143,552 Assets available for benefits: Beginning of year 2,028,675 13,040,889 3,849,391 3,180,579 1,037,770 - - ------------------------------------------------------- ------------------------------------ End of year $ 0 $ 13,695,881 $ 0 $ 0 $ 0 $16,211 $ 143,552 ------------------------------------------------------- ------------------------------------ ------------------------------------------------------- ------------------------------------
CRABBE RAINIER SCHWAB PIMCO DODGE & HUSON SMALL/MID INST. ADV. TOTAL COX CORE CAPITAL EUROPACIFIC PARTICIPANT MONEY RETURN BALANCED EQUITY EQUITY GROWTH LOANS TOTAL - ---------------------------------------------------------------------------------------------------------------------------------- $ 14,680 $ - $ - $ - $ - $ - $ 45,154 $ 164,375 - 5,619 67,424 325,184 323,749 82,655 - 1,506,556 - 5,350 141,341 (37,662) 461,470 127,826 - 3,091,966 - ---------------------------------------------------------------------------------------------------------------------------------- 14,680 10,969 208,765 287,522 785,219 210,481 45,154 4,762,897 (34,000) 10,294 47,068 109,952 191,017 103,771 - 1,647,685 20,531 19,196 103,990 238,869 420,080 229,022 - 3,652,373 - 3,488 7,974 39,021 52,708 26,247 - 439,870 - ---------------------------------------------------------------------------------------------------------------------------------- (13,469) 32,978 159,032 387,842 663,805 359,040 0 5,739,928 - ---------------------------------------------------------------------------------------------------------------------------------- 1,211 43,947 367,797 675,364 1,449,024 569,521 45,154 10,502,825 (21,674) - (64,052) (243,877) (109,938) (814) (35,521) (2,565,482) - - (44) (123) (268) (56) - (18,631) - ---------------------------------------------------------------------------------------------------------------------------------- (21,674) 0 (64,096) (244,000) (110,206) (870) (35,521) (2,584,113) 547,828 160,437 2,234,389 3,756,891 5,278,216 2,476,826 70,134 0 - ---------------------------------------------------------------------------------------------------------------------------------- 527,365 204,384 2,538,090 4,188,255 6,617,034 3,045,477 79,767 7,918,712 - - - - - - 454,543 23,591,847 - ---------------------------------------------------------------------------------------------------------------------------------- $527,365 $204,384 $2,538,090 $4,188,255 $6,617,034 $3,045,477 $534,310 $31,510,559 - ---------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------
5 Immunex Corporation Profit Sharing 401(k) Plan and Trust Statements of Changes in Assets Available for Benefits with Fund Information (continued)
INVESTCO STRATEGIC FIDELITY HEALTH GROWTH AND BALANCED PRINCIPAL PARTICIPANT YEAR ENDED DECEMBER 31, 1995 SCIENCES INCOME JANUS PORTFOLIO PRESERVATION LOANS TOTAL ADDITIONS ---------------------------------------------------------------------------------------------------- Investment income: Interest $ 1,033 $ 4,472 $ 1,876 $ 77,524 $ 73,474 $ 36,184 $ 194,563 Dividends 142,213 604,669 197,503 34,344 - - 978,729 Loans to participants 14,486 83,297 26,436 23,672 10,315 (158,206) 0 Net realized and unrealized appreciation 524,170 2,520,914 557,844 496,452 24,525 - 4,123,905 ---------------------------------------------------------------------------------------------------- Total investment income 681,902 3,213,352 783,659 631,992 108,314 (122,022) 5,297,197 Contributions: Employer 132,200 741,720 290,335 161,517 54,574 - 1,380,346 Employee 290,484 1,592,834 653,430 338,539 137,115 - 3,012,402 Rollovers 16,718 75,008 66,865 33,488 4,322 - 196,401 ---------------------------------------------------------------------------------------------------- Total contributions 439,402 2,409,562 1,010,630 533,544 196,011 0 4,589,149 ---------------------------------------------------------------------------------------------------- Total additions 1,121,304 5,622,914 1,794,289 1,165,536 304,325 (122,022) 9,886,346 DEDUCTIONS Benefits paid to participants 119,412 689,503 199,617 455,212 352,915 26,322 1,842,981 Administrative expenses - - - 26,974 2,795 - 29,769 Loans to participants 25,578 150,679 58,268 40,392 31,033 (305,950) 0 ---------------------------------------------------------------------------------------------------- Total deductions 144,990 840,182 257,885 522,578 386,743 (279,628) 1,872,750 Net transfers (to) from other funds 156,976 359,769 19,625 (461,843) (74,527) - 0 ---------------------------------------------------------------------------------------------------- Increase (decrease) in assets available for benefits 1,133,290 5,142,501 1,556,029 181,115 (156,945) 157,606 8,013,596 Assets available for benefits: Beginning of year 895,385 7,898,388 2,293,362 2,999,464 1,194,715 296,937 15,578,251 ---------------------------------------------------------------------------------------------------- End of year $ 2,028,675 $ 13,040,889 $ 3,849,391 $ 3,180,579 $ 1,037,770 $ 454,543 $ 23,591,847 ---------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES. 6 Immunex Corporation Profit Sharing 401(k) Plan and Trust Notes to Financial Statements December 31, 1997 1. DESCRIPTION OF THE PLAN The following description of the Immunex Corporation Profit Sharing 401(k) Plan and Trust (the Plan) provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan's provisions. GENERAL The Plan was established on January 1, 1987 to encourage long-term savings by employees and to supplement retirement income. The Plan is a defined contribution profit-sharing plan. All full-time, salaried employees of Immunex Corporation and its wholly owned subsidiaries (the Company) are eligible to enroll in the Plan on January 1 and July 1 following the date of hire. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts in the statement of assets available for benefits and the statement of changes in assets available for benefits, as well as the amounts disclosed in the financial statement footnotes. Actual results could differ from those estimates. CONTRIBUTIONS Participants may contribute from 1% to 15% of their compensation, tax-deferred, through payroll deductions to the Plan, up to the calendar year limit imposed by the Internal Revenue Service. Participants may also contribute to the Plan amounts previously contributed to another qualified plan. The Company matches 100% on the first 2% of deferrals and 50% on the next 4% of deferrals for employees with under five years of service. Employees with five or more years of service receive a Company match of 100% on the first 2% of deferrals and 75% on the next 4% of deferrals. Additional amounts may be contributed at the option of the Company's Board of Directors, but they shall not exceed the maximum amount allowable to be taken as a tax deduction by the Company. On December 31, 1997, $182,103 of contributions were received and were included in the December 31, 1997 Schwab Cash fund balance. Because the contributions were received at the end of the year, the trustee was not able to allocate the funds to the Plan's various investments in accordance with the directives of the Plan participants. These 7 1. DESCRIPTION OF THE PLAN (CONTINUED) amounts have been represented as pending transfers in the December 31, 1997 statements of assets available for benefits. PARTICIPANT ACCOUNTS Each participant's account is credited with the participant's contribution, the matching employer contribution, and an allocation of Plan earnings and is charged with an allocation of administrative expenses Allocations are based on participant account balances, as defined in the Plan document. The benefit to which a participant is entitled is the benefit that can be provided from the participant's account. VESTING Participant contributions and actual earnings thereon are 100% vested immediately. Employer contributions vest at the rate of 20% per year of service commencing with the first year of service. PAYMENT OF BENEFITS Distributions to terminated participants for vested account balances are made in cash as soon as practicable upon request after termination. Participants are eligible for distribution of 100% of their vested account balances, including both participant and employer contributions, as soon as practicable after their normal or postponed retirement dates, at death, or at total disability, as defined by the Plan document. The nonvested portion of account balances is subject to forfeiture. Forfeitures are used to reduce employer contributions to the Plan for the next Plan year. At December 31, 1996, $15,875 of nonvested Company matching contributions were netted against the contribution receivable to be received from the Company. There were no nonvested Company matching contributions netted against the contribution receivable at December 31, 1997. HARDSHIP WITHDRAWALS Hardship withdrawals are permitted by the Plan in accordance with Section 401(k) of the Internal Revenue Code (IRC) with the approval of the Plan administrator. 8 1. DESCRIPTION OF THE PLAN (CONTINUED) PARTICIPANT LOANS Participants may borrow up to 50% of their vested account balances from the Plan, as limited by Section 72(P)(2) of the IRC. Such loans are secured by their account balances. Loan terms range from eight months to ten years. Interest is accrued at the prime rate of interest plus two percentage points. ADMINISTRATIVE EXPENSES Certain administrative expenses of the Plan are paid by the Company. Administrative expenses paid by the Company on behalf of the Plan for the years ended December 31, 1997, 1996, and 1995 were $132,263, $88,172, and $38,383, respectively. 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. In the event of Plan termination, participants will become 100% vested in their accounts, including the portion related to employer contributions and earnings thereon. 2. DESCRIPTION OF INVESTMENTS Investments are stated at fair value. Shares of mutual funds are valued at quoted market prices, which represent the net asset values of shares held by the Plan. Participant loans are valued at their outstanding balance, which approximates fair value. Purchases and sales of investments are recorded on the trade dates with realized gains and losses based on the average cost of the investments. Interest-bearing cash consists of highly liquid, short-term investments with purchased maturity dates of less than three months. Participant loans consist of the principal balance of loans outstanding to the Plan participants. 9 2. DESCRIPTION OF INVESTMENTS (CONTINUED) Participants may invest in one or more of the following funds: SCHWAB INSTITUTIONAL ADVANTAGE MONEY MARKET FUND - The Schwab Institutional Advantage Money Market Fund consists primarily of bank certificates of deposit; commercial paper rated in the top two rating categories by any nationally recognized statistical rating organization; obligations of, or guaranteed by, the U.S. or Canadian governments, their agencies, or instrumentalities; and repurchase agreements involving obligations that are suitable for investment under the preceding categories. The primary objective of this fund is maximum current income consistent with liquidity and stability of capital. Charles Schwab Trust Company is the trustee as defined by the Plan and, therefore, these transactions qualify as party-in-interest. FIDELITY GROWTH AND INCOME FUND - The Growth and Income Fund consists of a portfolio of high-yield securities. Investments consist primarily of equity securities; however, they may also include any combination of common stock, preferred stock, and fixed-income securities. PIMCO TOTAL RETURN FUND - The PIMCO Total Return Fund consists primarily of debt securities, including U.S. Government securities, corporate bonds, and mortgage-related securities, but may also include securities denominated in foreign currencies. The primary objective of this fund is to seek total return consistent with preservation of capital. DODGE & COX BALANCED FUND - The Dodge and Cox Balanced Fund consists primarily of common stocks and convertible securities but may also include investment-grade, fixed-income securities. The primary objective of this fund is to seek income, conservation of principal, and long-term growth of principal and income. CRABBE HUSON CORE EQUITY FUND - The Crabbe Huson Core Equity Fund consists of a portfolio of common stocks that are widely and actively traded, and foreign securities. The primary objective of this fund is to seek long-term capital appreciation and the preservation of capital. RAINIER SMALL/MID CAPITAL EQUITY FUND - The Rainier Small/Mid Capital Equity Fund consists primarily of equities issued by companies with market capitalizations between $50 million and $5 billion. The primary objective of this fund is to seek long-term capital appreciation. 10 2. DESCRIPTION OF INVESTMENTS (CONTINUED) EUROPACIFIC GROWTH FUND - The EuroPacific Growth Fund consists primarily of equity securities of issuers domiciled in Europe or the Pacific Basin. The primary objective of this fund is to seek long-term growth of capital. IMMUNEX CORPORATION COMMON STOCK FUND - The Immunex Corporation Common Stock Fund invests in the common stock of Immunex Corporation. It is an equity investment alternative with a growth objective that allows the participant to invest in and own common stock of Immunex Corporation. As the Immunex Corporation is the Plan sponsor, all related transactions qualify as party-in-interest. 3. INVESTMENTS The fair value of investments that represent 5% or more of the Plan's assets available for benefits at December 31 are as follows:
1997 1996 ----------------------------- Dodge & Cox Balanced Fund $ 3,446,010 $ 2,529,578 Crabbe Huson Core Equity Fund 5,683,517 4,165,279 Rainier Small/Mid Cap Equity Fund 10,163,905 6,575,910 EuroPacific Growth Fund 3,978,525 3,022,015 Fidelity Growth and Income Fund 18,903,724 13,643,757
11 3. INVESTMENTS (CONTINUED) During the years ended December 31, 1997, 1996, and 1995, the Plan's investments (including investments bought and sold, as well as held, during the year) appreciated in fair value as follows:
NET APPRECIATION IN FAIR VALUE DURING THE FAIR VALUE DECEMBER 31, 1997 YEAR AT YEAR-END - ----------------- ---------------------------- Investments at fair value as determined by quoted market price: Interest-bearing cash $ - $ 878,114 Mutual funds 5,094,501 42,575,576 Common stock - Immunex Corporation 453,535 1,280,934 ---------------------------- 5,548,036 44,734,624 Investments at estimated fair value - participant - 707,484 loans ---------------------------- $5,548,036 $45,442,108 ---------------------------- ---------------------------- DECEMBER 31, 1996 - ----------------- Investments at fair value as determined by quoted market price: Interest-bearing cash $ - $ 554,457 Mutual funds 3,050,698 30,137,388 Common stock - Immunex Corporation 41,268 141,082 ---------------------------- 3,091,966 30,832,927 Investments at estimated fair value - participant - 542,163 loans ---------------------------- $3,091,966 $31,375,090 ---------------------------- ----------------------------
12 3. INVESTMENTS (CONTINUED)
NET APPRECIATION IN FAIR VALUE DURING THE FAIR VALUE DECEMBER 31, 1995 YEAR AT YEAR-END - ----------------- --------------------------- Investments at fair value as determined by quoted market price: $ 5,560 $ 123,553 Interest-bearing cash Certificates of annuity 4,472 89,445 Mutual funds 3,602,433 18,675,812 Common stock 302,943 1,868,234 Corporate debt 192,241 1,959,642 Government debt 16,256 99,930 --------------------------- 4,123,905 22,816,616 Investments at estimated fair value - participant loans - 454,543 --------------------------- $4,123,905 $23,271,159 --------------------------- ---------------------------
4. DIFFERENCES BETWEEN FINANCIAL STATEMENTS AND FORM 5500 The following is a reconciliation of assets available for benefits per the financial statements to the Form 5500:
DECEMBER 31 1997 1996 ------------------------ Assets available for benefits per the financial statements $45,442,108 $31,510,559 Amounts allocated to withdrawn participants (355,551) (228,326) ------------------------ Assets available for benefits per the Form 5500 $45,086,557 $31,282,233 ------------------------ ------------------------
13 4. DIFFERENCES BETWEEN FINANCIAL STATEMENTS AND FORM 5500 (CONTINUED) The following is a reconciliation of benefits paid to participants per the financial statements to the Form 5500: Benefits paid to participants per the financial statements $1,867,620 Add: amounts allocated on Form 5500 to withdrawn participants at December 31, 1997 355,551 Less: amounts allocated on Form 5500 to withdrawn participants at December 31, 1996 (228,326) --------- Benefits paid to participants per the Form 5500 $1,994,845 --------- --------- Benefits paid to participants per the financial statements $2,565,482 Add: amounts allocated on Form 5500 to withdrawn participants at December 31, 1996 228,326 Less: amounts allocated on Form 5500 to withdrawn participants at December 31, 1995 (511,111) --------- Benefits paid to participants per the Form 5500 $2,282,697 --------- --------- Benefits paid to participants per the financial statements $1,842,981 Add: amounts allocated on Form 5500 to withdrawn participants at December 31, 1995 511,111 Less: amounts allocated on Form 5500 to withdrawn participants at December 31, 1994 (542,761) --------- Benefits paid to participants per the Form 5500 $1,811,331 --------- ---------
Amounts allocated to withdrawn participants are recorded on the Form 5500 for benefit claims that have been processed and approved for payment prior to year-end but not paid. 5. INCOME TAX STATUS The Internal Revenue Service has determined and informed Immunex Corporation (the Plan Sponsor) by a letter dated November 30, 1995 that the Plan and related trust are designed in accordance with applicable sections of the Internal Revenue Code (IRC). The Plan has been amended since receiving the determination letter. However, the Plan administrator and the Plan's tax counsel believe that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC. 14 6. YEAR 2000 ISSUE (UNAUDITED) The Plan Sponsor has developed a plan to modify its internal information technology to be ready for the year 2000 and has begun converting critical data processing systems. The project also includes determining whether third-party service providers have reasonable plans in place to become year 2000 compliant. The Plan Sponsor currently expects the project to be substantially complete by early 1999. The Plan Sponsor does not expect this project to have a significant effect on Plan operations. 15 Immunex Corporation Profit Sharing 401(k) Plan and Trust Line 27a - Schedule of Assets Held for Investment Purposes (EIN: 51-0346580, PN: 001) December 31, 1997
(c) DESCRIPTION OF INVESTMENT (b) INCLUDING MATURITY DATE, RATE OF (d) (e) (a) IDENTITY OF ISSUE, BORROWER, OR SIMILAR PARTY INTEREST, PAR OR MATURITY VALUE COST** MARKET VALUE - ------------------------------------------------------------------------------------------------------------------------------------ Interest-bearing cash: * Schwab Inst. Advantage Money Fund 690,840 units $ $ 690,840 * Schwab Money Market Fund & Cash 187,274 units 187,274 ----------------------------- Total cash and cash equivalents 878,114 Common stock: * Immunex Stock 23,721 shares 1,280,934 Mutual Funds: EuroPacific Growth 152,903 units 3,978,525 Crabbe Huson Core Equity 302,959 units 5,683,517 Dodge & Cox Balanced 51,602 units 3,446,010 Fidelity Growth and Income 496,161 units 18,903,724 PIMCO Total Return 37,726 units 399,895 Rainier Small/Mid Capital Equity 452,735 units 10,163,905 ----------------------------- Total mutual funds 42,575,576 * Participant loans - participants Interest at prime plus 2% maturity through 2007. 707,484 ----------------------------- Total assets held for investment $ $45,442,108 ----------------------------- -----------------------------
* Denotes party-in-interest. ** Historical cost information is not available from the Plan trustee. 16 Immunex Corporation Profit Sharing 401(k) Plan and Trust Line 27d - Schedule of Reportable Transactions (EIN: 51-0346580, PN: 001) Year Ended December 31, 1997
(h) CURRENT VALUE OF (i) (a) (b) (c) (d) (e) EXPENSES (g) ASSET ON NET GAIN IDENTITY OF PARTY INVOLVED DESCRIPTION PURCHASE SELLING LEASE INCURRED WITH COST OF TRANSACTION OR AND DESCRIPTION OF ASSET OF ASSET PRICE PRICE RENTAL TRANSACTION ASSET DATE (LOSS) - ------------------------------------------------------------------------------------------------------------------------------------ CATEGORY (III) - A SERIES OF TRANSACTIONS IN EXCESS OF 5% OF PLAN ASSETS. Fidelity Growth and Income Fund Mutual Fund $3,528,133 $3,164,931 $3,164,931 Fidelity Growth and Income Fund Mutual Fund $1,689,299 * 1,689,299 * Europacific Growth Fund Mutual Fund 1,589,187 1,544,464 1,544,464 Europacific Growth Fund Mutual Fund 595,252 * 595,252 * Crabbe Huson Core Equity Fund Mutual Fund 2,232,424 2,719,289 2,719,289 Crabbe Huson Core Equity Fund Mutual Fund 686,616 * 686,616 * Rainier Small/mid Capital Equity Fund Mutual Fund 3,143,368 2,875,773 2,875,733 Rainier Small/mid Capital Equity Fund Mutual Fund 982,002 * 980,002 *
THERE WERE NO CATEGORY (i), (ii), OR (iv) REPORTABLE TRANSACTIONS DURING 1997. * Historical cost information is not available from the Plan trustee. 17 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan administrator has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Immunex Corporation Profit Sharing 401(k) Plan and Trust Date: June 25, 1998 /s/ Douglas G. Southern ------------------- ------------------------------------- Douglas G. Southern Senior Vice President, Chief Financial Officer and Treasurer Date: June 25, 1998 /s/ Kathy Spencer ------------------- ------------------------------------- Kathy Spencer Vice President, Human Resources Date: June 25, 1998 /S/ Michael Mumford ------------------- ------------------------------------- Michael Mumford Vice President, Manufacturing 18 Immunex Corporation Profit Sharing 401(k) Plan and Trust Exhibit Index 23.1 Consent of Ernst & Young LLP, Independent Auditors EX-23.1 2 EXHIBIT 23.1 Exhibit 23.1 CONSENT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS We consent to the incorporation by reference in the Registration Statements (Form S-8 No. 33-04563) pertaining to the Immunex Corporation Profit Sharing 401(k) Plan and Trust of our report dated April 29, 1998 with respect to the financial statements and schedules of Immunex Corporation Profit Sharing 401(k) Plan and Trust included in this Annual Report (Form 11-K) for the year ended December 31, 1997. Seattle, Washington ERNST & YOUNG LLP June 26, 1998 -----END PRIVACY-ENHANCED MESSAGE-----