UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 11-K
(Mark One)
[ X ] ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended May 27, 2001
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or
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934.
For the transition period from _____________to______________
Commission File Number 1-11344
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A. Full title of the plan and the address of the plan, if
different from that of the issuer named below:
INTERMAGNETICS GENERAL CORPORATION
IGC SAVINGS PLAN
B. Name of issuer of the securities held pursuant to the plan and
the address of its principal executive office:
INTERMAGNETICS GENERAL CORPORATION
450 Old Niskayuna Road
Latham, New York 12110-0461
Intermagnetics General
Corporation
IGC Savings Plan
Financial Statements and Supplemental Schedule
May 31, 2001 and 2000
Intermagnetics General Corporation IGC Savings Plan
Index
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Page(s)
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Report of Independent Accountants...........................................1
Financial Statements
Statements of net assets available for benefits......................2
Statements of changes in net assets available for benefits...........3
Notes to financial statements......................................4-7
Supplemental Schedule
Schedule of assets held at May 31, 2001* ............................8
* Refers to schedule required in Form 5500 (Annual Return/Report of Employee
Benefit Plan) for the plan year ended May 31, 2001.
Report of Independent Accountants
To the Participants and Administrator of
Intermagnetics General Corporation IGC Savings Plan
In our opinion, the accompanying statements of net assets available for benefits
and the related statements of changes in net assets available for benefits
present fairly, in all material respects, the net assets available for benefits
of Intermagnetics General Corporation IGC Savings Plan (the "Plan") at May 31,
2001 and 2000, and the changes in net assets available for benefits for the
years then ended in conformity with accounting principles generally accepted in
the United States of America. 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 auditing standards generally accepted in the
United States of America, 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 our opinion.
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule of assets held
at May 31, 2001 is presented for the purpose of additional analysis and is not a
required part of the basic financial statements but is supplementary information
required by the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974. This
supplemental schedule is the responsibility of the Plan's management. The
supplemental schedule 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.
September 26, 2001
1
Intermagnetics General Corporation IGC Savings Plan
Statements of Net Assets Available for Benefits
May 31, 2001 and 2000
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2001 2000
ASSETS
Assets:
Investments at fair value $ 2,025,580 $22,084,031
Cash - interest bearing 26,555,078 21,427
Participant contributions receivable 72,572
Employer contributions receivable 742,202 587,093
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Net assets available for benefits $29,322,860 $22,765,123
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The accompanying notes are an integral part of the financial statements.
2
Intermagnetics General Corporation IGC Savings Plan
Statements of Changes in Net Assets Available for Benefits
For the Years Ended May 31, 2001 and 2000
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2001 2000
Additions to net assets attributed to:
Investment income:
Net(depreciation) appreciation in fair value $(2,135,340) $ 1,950,488
of investments
Interest and dividends 1,707,331 593,941
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(428,009) 2,544,429
Contributions:
Participants 1,848,960 1,815,812
Employer 1,236,004 1,254,748
Transfers from other plans 6,360,178
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9,445,142 3,070,560
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Total additions 9,017,133 5,614,989
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Deductions from net assets attributed to:
Withdrawals and benefits paid to participants 2,337,401 1,734,558
Administrative expenses 121,995 82,128
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Total deductions 2,459,396 1,816,686
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Net increase 6,557,737 3,798,303
Net assets available for benefits:
Beginning of year 22,765,123 18,966,820
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End of year $29,322,860 $22,765,123
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The accompanying notes are an integral part of the financial statements.
3
Intermagnetics General Corporation IGC Savings Plan
Notes to Financial Statements
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1. Description of the Plan
The following brief description of Intermagnetics General Corporation
IGC Savings Plan (the "Plan") provides only general information.
Participants should refer to the Plan agreement for a more complete
description of the Plan's provisions.
General
The Plan is a defined contribution employee savings plan covering
substantially all employees of Intermagnetics General Corporation (the
"Company") that became effective on February 1, 1985, as restated on June
1, 1989. The Plan is subject to the provisions of the Employee Retirement
Income Security Act of 1974 (ERISA).
Eligibility
An employee must complete 30 days of service from the date of employment,
and have attained the age of 18 to be eligible to participate in the
Plan. Employees can join the Plan on the first Monday of the month
following the 30 days of employment.
Contributions
Employees who elect to participate in the Plan may contribute on a pretax
basis up to 15% of their annual compensation, not to exceed certain
Internal Revenue Code limitations. Employer contributions to the Plan are
made equal to 50% of participant contributions, up to 5% of their gross
compensation, which includes a participant's base compensation, overtime,
fees, tips, profits, bonuses and commissions. Company contributions are
allocated on the same basis as those chosen for participant
contributions. Additional non-elective and/or profit-sharing
contributions are at the discretion of the Company. The Company made
non-elective discretionary contributions of approximately $733,000 and
$566,000 during 2001 and 2000, respectively, which was included in
contributions receivable at May 31, 2001 and 2000.
Participant accounts
Participants' accounts are credited with the participants' contributions
and allocations of (a) the Company's contribution and, (b) Plan earnings,
and charged with an allocation of administrative expenses. Allocations
are based on participant account balances in the respective funds
elected.
Vesting
All participants immediately vest in their contributions while employer
matching contributions vest after one year of service, plus accumulated
earnings thereon. A participant vests in non-elective and/or
profit-sharing contributions, if any, based upon years of service and is
100% vested after five years of continuous service, death or disability,
or upon attainment of age 65.
Forfeitures
Forfeitures, if any, from accounts of non-vested terminated participants
are allocated to pay administrative expenses or to reduce future employer
contributions. Forfeitures were not used to reduce employer contributions
for the years ended May 31, 2001 and 2000. Forfeited unvested amounts
were $7,412 and $191 at May 31, 2001 and 2000, respectively and will be
used to reduce future employer contributions.
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Intermagnetics General Corporation IGC Savings Plan
Notes to Financial Statements
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1. Description of the Plan, Continued
Participant loans
Participants may borrow from their accounts a minimum of $1,000 up to a
maximum equal to the lesser of $50,000 or 50% of their vested account
balances. Loans are collateralized by the balance in the participant's
account. Loan terms may not exceed five years, unless for the purchase of
a primary residence. The loans bear interest at a rate of prime plus 1%
at the time the loan is made, as determined by the plan administrator.
Payment of benefits
On termination of service due to death, disability or retirement, a
participant becomes 100% vested and may elect to receive payment in the
form of a lump-sum or defer payment until the later of death, disability,
retirement or attainment of age 70-1/2. If a participant's account does
not exceed $3,500 for participants joining the Plan before August 5, 1997
or $5,000 for participants joining the Plan thereafter, a lump-sum
payment will be made.
A participant may also elect benefits to be paid under the qualifying
financial hardship provisions of the Plan.
2. Summary of Significant Accounting Policies
Basis of presentation
The accompanying financial statements have been prepared on the accrual
basis of accounting.
Investments
Investments are stated at fair value. The fair value of investments in
mutual funds are based on quoted redemption values on the last business
day of the Plan year. The investments in the Exeter Trust Company
collective investment trust funds are stated at fair value based on the
market values of the underlying securities as reflected on the funds'
financial statements. Intermagnetics General Corporation common stock
("IGC Stock Fund") owned by the Plan is carried at market value based on
the latest quoted market prices on the last business day of the plan
year. Participant loans are valued at cost, which approximates fair
value.
Security transactions are recorded on a trade-date basis. Gain or loss on
sales of the Company's common stock is determined using the first-in,
first-out (FIFO) method, and, for mutual and trust funds, based on the
average cost for investments in the respective funds.
Administrative expenses
The Plan stipulates that all costs incurred in administering the Plan
shall be borne by the Company, or if the Company elects not to pay such
expenses, they should be paid from the plan. Administrative expenses paid
by the Company on behalf of the Plan were approximately $21,100 and
$22,000 during 2001 and 2000, respectively.
Use of estimates
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and changes therein, and disclosure of
contingent assets and liabilities. Actual results could differ from those
estimates.
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Intermagnetics General Corporation IGC Savings Plan
Notes to Financial Statements
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3. Investments
A summary of plan investments as of and for the years ended May 31, 2001
and 2000 follows:
May 31, 2001
Net Appreciation
(Depreciation)
in Fair Value Fair
During Year Value
Investment in mutual funds:
American Century Ultra Fund $ (4,113,156) $
Neuberger and Berman Guardian Fund (29,593)
Strong Government Securities Fund 41,808
Vanguard Index (76,725)
Scudder International (59,416)
Neuberger & Berman Focus Fund (150,341)
Investment in Exeter Trust Company collective investment trusts:
Long-Term Growth 572,022
Growth with Reduced Volatility 288,355
Defensive Growth 79,086
Stable Income 187,007
Participant loans 1,406,277
IGC Stock Fund 1,125,613 619,303
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$ (2,135,340) $ 2,025,580
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May 31, 2000
Net Appreciation
(Depreciation)
in Fair Value Fair
During Year Value
Investment in mutual funds:
American Century Ultra Fund $ 1,311,472 $ 10,863,027*
Neuberger and Berman Guardian Fund (281,980) 1,340,767*
Strong Government Securities Fund (23,523) 589,170
Investment in Exeter Trust Company collective investment trusts:
Long-Term Growth 269,197 3,221,573*
Growth with Reduced Volatility 144,068 1,974,301*
Defensive Growth 35,619 567,832
Stable Income 142,095 2,320,520*
Participant loans 566,233
IGC Stock Fund 353,540 640,608
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$ 1,950,488 $ 22,084,031
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* represents 5% or more of net assets available for benefits
6
Intermagnetics General Corporation IGC Savings Plan
Notes to Financial Statements
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4. Plan Termination
Although it has not expressed any intent to do so, the Company may
terminate the Plan at any time. If the Plan is terminated, the assets of
the Plan shall be distributed to the participants based upon the
participants' respective accumulated account balances.
5. Income Tax Status
The Internal Revenue Service has determined and informed the Company by a
letter dated September 1, 1995, that the Plan qualifies under Section
401(a) of the Internal Revenue Code (IRC) and is, therefore, not subject
to tax under present income tax law. Once qualified, the Plan is required
to operate in conformity with the IRC in order to maintain its qualified
plan status. The Plan administrator and the Plan's tax counsel believe
that the Plan is currently designed and being operated in compliance with
the applicable requirements of the IRC. Therefore, they believe that the
Plan was qualified and was tax-exempt as of the financial statement date.
6. Subsequent Event
Subsequent to year end all investments of the Plan were transferred to
Putnam Investments. The Plan investments had been liquidated at May 31,
2001 to facilitate the transfer.
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Intermagnetics General Corporation IGC Savings Plan
Schedule of Assets Held
May 31, 2000
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Description of Current
Identity of Issue Investment Value
*Intermagnetics General Corporation Common Stock 1,406,277
*Participant Loans Loans 619,303
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$2,025,580
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* Indicates that the issuer is a party-in interest as defined in the Employee
Retirement Income Security Act of 1974.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the trustees (or other persons who administer the employee benefit plan)
have duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
INTERMAGNETICS GENERAL CORPORATION
IGC SAVINGS PLAN
(Name Of Plan)
By: /s/ Michael C. Zeigler
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Michael C. Zeigler
Chief Financial Officer
Dated: November 21, 2001
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Exhibit Index
Exhibit
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23 Consent Of PricewaterhouseCoopers LLP
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