Securities and Exchange Commission Attention: Filing Desk Judiciary Plaza 450 Fifth Street, NW Washington, D.C. 20549 Re: Symbol Technologies, Inc. 1997 Employee Stock Purchase Plan Gentlemen: We transmit herewith for electronic filing with the Securities and Exchange Commission, pursuant to the Securities Act of 1934, an annual report on Form 11-K of the Symbol Technologies, Inc. 1997 Employee Stock Purchase Plan. Please address any comments regarding the above to the undersigned at One Symbol Plaza, Holtsville, New York 11742-1300 (631) 738-4495. Very truly yours, Symbol Technologies, Inc. By: /s/ Robert W. Korkuc Robert W. Korkuc Senior Director, Corporate Finance 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 [X] ANNUAL REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 [ FEE REQUIRED ] For the Fiscal year ended December 31, 1999 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 1-9802 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: SYMBOL TECHNOLOGIES, INC. 1997 EMPLOYEE STOCK PURCHASE PLAN B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: SYMBOL TECHNOLOGIES, INC. ONE SYMBOL PLAZA HOLTSVILLE, NY 11742-1300 SYMBOL TECHNOLOGIES, INC. 1997 Employee Stock Purchase Plan Index to Financial Statements PAGES Independent Auditors' Report 2 Statements of Financial Condition as of December 31, 1999 and 1998 3 Statements of Operations and Changes in Participants' Equity for the years ended December 31, 1999 and 1998 and the period from July 1, 1997 (date of inception) 4 through December 31, 1997 Notes to Financial Statements 5-7 INDEPENDENT AUDITORS' REPORT To the Board of Directors of Symbol Technologies, Inc. and Participants of the Symbol Technologies, Inc. 1997 Employee Stock Purchase Plan. We have audited the accompanying statements of financial condition of the Symbol Technologies, Inc. 1997 Employee Stock Purchase Plan (the "Plan") as of December 31, 1999 and 1998 and the related statements of operations and changes in participants' equity for the years ended December 31, 1999 and 1998 and the period from July 1, 1997 (date of inception) through December 31, 1997. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the 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 financial position of the Plan as of December 31, 1999 and 1998, and the results of its operations and changes in its participants' equity for the years ended December 31, 1999 and 1998 and the period from July 1, 1997 (date of inception) through December 31, 1997, in conformity with generally accepted accounting principles. /s/ DELOITTE & TOUCHE LLP New York, New York March 24, 2000 -2- SYMBOL TECHNOLOGIES, INC. 1997 Employee Stock Purchase Plan Statements of Financial Condition December 31, December 31, 1999 1998 ASSETS Employer account receivable $2,720,154 $1,895,739 Employer contribution receivable 480,027 334,542 Total assets $3,200,181 $2,230,281 LIABILITIES Payable for stock purchases $3,200,181 $2,230,281 Total liabilities 3,200,181 2,230,281 Participants' equity - - Total liabilities and participants' equity $3,200,181 $2,230,281 See Notes to Financial Statements -3- SYMBOL TECHNOLOGIES, INC. 1997 Employee Stock Purchase Plan Statements of Operations and Changes in Participants' Equity July 1, 1997 Year Ended Year Ended (date of Inception) December 31, December 31, to December 31, 1999 1998____ 1997________ Participant contributions $5,013,222 $3,422,063 $1,071,968 Employer contributions 864,200 590,383 185,469 Total additions 5,877,422 4,012,446 1,257,437 Stock Purchases 2,561,153 1,705,629 - Participant withdrawals 116,088 76,536 20,978 Amounts reserved for future stock 3,200,181 2,230,281 1,236,459 purchases Total deductions 5,877,422 4,012,446 1,257,437 Net additions - - - Participants' equity, beginning - - - of period Participants' equity, end of $ - $ - $ - Period See Notes to Financial Statements -4- SYMBOL TECHNOLOGIES, INC. 1997 Employee Stock Purchase Plan Notes to Financial Statements Years Ended December 31, 1999, 1998, and 1997 1. DESCRIPTION OF THE PLAN: The following description of the Symbol Technologies, Inc. (the "Company") 1997 Employee Stock Purchase Plan, (the "Plan"), provides only general information. Participants should refer to the Plan document for a more complete statement of the Plan's provisions. 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 and deductions during the reporting period. Actual results could differ from those estimates. Certain reclassifications have been made to prior year financial statements to conform with current presentations. a. General Description The Plan is an employee stock purchase plan that allows participants to purchase shares of Symbol Common Stock ("Stock") through payroll deductions. The Plan's fiscal year is divided into two six-month periods ("Payment Periods"). The Payment Periods are January 1 to June 30 and July 1 to December 31 and represent the periods during which participants payroll deductions are accumulated. At the end of each Payment Period, the participants' accumulated payroll deductions are used to purchase shares of Stock. Participants may purchase shares of Stock for an amount equal to 85% of the lesser of (1) the closing price of a share of Stock on the first trading day of the Payment Period or (2) the closing price of a share of Stock on the last trading day of the Payment Period ("Option Price"). The Plan was approved by the Company's stockholders at the annual meeting of Shareholders held on May 5, 1997. The Stock subject to the options under the Plan shall be authorized but unissued common stock, treasury shares or shares purchased on the open market. The aggregate number of shares which may be issued pursuant to the Plan is 843,750. At December 31, 1999 participants of the Plan had purchased 341,131 shares of Stock since the Plan's inception and had accumulated payroll deductions during the July 1, 1999 to December 31, 1999 payment period sufficient to purchase 84,077 shares of Stock subsequent to December 31, 1999, leaving 418,542 shares of Stock available for future purchases by Plan participants. The Plan is neither qualified under Section 401(a) of the Internal Revenue Code of 1986, as amended, nor subject to any of the provisions of the Employee Retirement Income Security Act of 1974 (commonly known as "ERISA"). b. Eligibility All full-time employees of the Company or any of its participating subsidiaries who have completed 90 days of continuous employment on or before the first day of any Payment Period and all part-time employees of the Company or its participating subsidiaries who satisfy certain service requirements and who have completed 90 days of continuous employment on or before the first day of any Payment Period are eligible to participate in the Plan. Eligible employees may only enroll in the Plan at the beginning of a Payment Period. -5- c. Stock Purchases On the last trading day of each Payment Period, the amount of each participant's accumulated payroll deductions is applied towards the purchase of the maximum number of whole and fractional shares of Stock possible, determined by dividing the participant's total contribution by the per share Option Price applicable for that Payment Period. The maximum number of shares of Stock a participant can purchase is 2,500 shares. Purchased shares of Stock are transferred to a brokerage account in the name of the participant at a securities brokerage firm approved by a committee appointed by the Board of Directors of the Company. d. Participant Contributions Participants may elect to have 2% to 10% of their "Base Salary" (as defined in the Plan) deducted on an after-tax basis for the purchase of Stock. Participants may only increase their deduction percentages at the beginning of a Payment Period and may not decrease their deduction more often than once during any Payment Period. No interest accrues or is paid on participants' accumulated payroll deductions. Once made, the Company may use the payroll deductions for any corporate purpose, and the Company has no obligation to segregate employees' payroll deductions from any other funds of the Company or to hold funds representing the same pending the application thereof to the purchase of shares at the end of each Payment Period in accordance with the Plan. e. Employer Contributions The 15% discount from market value granted to Plan participants on the purchase of shares of Stock at the end of each Payment Period represents the Company's non-cash contribution to the Plan. These non-cash contributions amounted to $864,200 for the year ended December 31, 1999, $590,383 for the year ended December 31, 1998 and $185,469 for the six month inception period ended December 31, 1997. f. Participant Refunds Plan participants may withdraw from the Plan (in whole but not in part) at any time prior to the last day of a Payment Period by properly notifying the Company. A participant's accumulated payroll deductions for the Payment Period prior to withdrawal from the Plan will be promptly refunded to the participant without interest (unless required by law). Participants who terminate their employment relationship with the Company are not eligible to continue in the Plan. All payroll deductions accumulated during the Payment Period through the date of such cessation of employment are refunded to the employee or, in the event of the employee's death, to his or her estate. g. Administrative Expenses The Company bears all costs in connection with the Plan including administrative fees and all fees associated with the issuance of Stock. Administrative expenses related to the Plan amounted to approximately $272,000 for the year ended December 31, 1999, $45,000 for the year ended December 31, 1998 and $86,000 for the six month inception period ended December 31, 1997. -6- h. Plan Termination The Plan may be terminated at any time by the Company's Board of Directors but such termination shall not affect options then outstanding under the Plan. If at any time shares of Stock reserved for the purpose of the Plan remain available for purchase but not in sufficient number to satisfy all then unfilled purchase requirements, the available shares shall be apportioned among participants in proportion to the amount of payroll deductions accumulated on behalf of each participant that would otherwise be used to purchase Stock, and the Plan shall terminate. Upon such termination or any other termination of the Plan, all payroll deductions not used to purchase stock will be refunded, without interest (unless required by law). 2. INCOME TAX STATUS: The Plan fulfills the requirements of an "employee stock purchase plan" as defined in Section 423 of the Internal Revenue Code. As such, the Plan is not required to file income tax returns or pay income taxes. Under Section 423, a participating employee will not recognize taxable income, and the Company will not be entitled to a tax deduction, for federal income tax purposes when an employee enrolls in the Plan or when a participant purchases shares of Stock under the Plan. 3. SUBSEQUENT EVENT: Plan participants' accumulated payroll deductions for the Payment Period ended December 31, 1999, amounted to $2,720,154 and have been recorded as an amount receivable from the Company at December 31, 1999. Subsequent to December 31, 1999, $2,720,154 of these accumulated deductions were used to purchase 84,077 shares of Stock which were issued to participants by the Company in February 2000. The 84,077 shares of Stock purchased subsequent to December 31, 1999 had a market value of $3,200,181 as of the option price date which has been recorded as the liability "Payable for stock purchases" at December 31, 1999. -7- INDEPENDENT AUDITORS' CONSENT We consent to the incorporation by reference in Registration No. 333-26593 of Symbol Technologies, Inc. Form S-8 of our report dated March 24, 2000, appearing in this Annual Report on Form 11-K of the Symbol Technologies Employee Stock Purchase Plan for the year ended December 31, 1999. /s/ DELOITTE & TOUCHE LLP New York, New York March 31, 2000 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Stock Option and Restricted Stock Committee, the administrator of the Symbol Technologies, Inc. 1997 Employee Stock Purchase Plan, has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. SYMBOL TECHNOLOGIES, INC. 1997 Employee Stock Purchase Plan March 31, 2000 By: /s/ Robert Blonk Senior Vice President Human Resources SYMBOL TECHNOLOGIES, INC.