________________________________________________________________________________
Securities and Exchange Commission
Washington D.C. 20549
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Mark One):
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For the fiscal year ended: December 31, 2000
OR
[_] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the transition period from___________ to __________
Commission file number: 0-4466
Artesyn Technologies, Inc.
Employees' Tax-Favored Thrift and Savings Plan
(Full title of Plan)
Artesyn Technologies, Inc.
(Name of issuer of securities held pursuant to the Plan)
7900 Glades Road, Suite 500
Boca Raton, Florida 33434
(Address of principal executive office)
________________________________________________________________________________
CONTENTS
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PAGE
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. Report of Independent Certified Public Accountants 1
. Statements of Net Assets Available for Benefits
as of December 31, 2000 and 1999 2
. Statement of Changes in Net Assets Available for
Benefits for the Year Ended December 31, 2000 3
. Notes to Financial Statements 4
. Schedule:
--------
Schedule I - Schedule H, Part IV, line 4i - Schedule of Assets Held for
Investment Purposes as of December 31, 2000 9
. Signatures 10
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Plan Administrator of the Artesyn Technologies, Inc.
Employees' Tax-Favored Thrift and Savings Plan:
We have audited the accompanying statements of net assets available for benefits
of the Artesyn Technologies, Inc. Employees' Tax-Favored Thrift and Savings Plan
(the "Plan") as of December 31, 2000 and 1999, and the related statement of
changes in net assets available for benefits for the year ended December 31,
2000. These financial statements and the schedule referred to below are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements and schedule based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as of
December 31, 2000 and 1999, and the changes in its net assets available for
benefits for the year ended December 31, 2000, in conformity with accounting
principles generally accepted in the United States.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The Schedule of Assets Held for
Investment Purposes 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. The schedule has been subjected to the auditing procedures applied in our
audits 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.
Arthur Andersen LLP
Fort Lauderdale, Florida,
June 27, 2001.
1
Artesyn Technologies, Inc.
Employees' Tax-Favored Thrift and Savings Plan
Statements of Net Assets Available for Benefits
as of December 31, 2000 and 1999
2000 1999
----------------- -----------------
ASSETS:
Investments, at fair value $53,572,369 $59,682,902
----------------- -----------------
Receivables:
Employer contributions 1,535,507 1,288,968
Participant contributions 104,567 80,380
----------------- -----------------
Total receivables 1,640,074 1,369,348
----------------- -----------------
Total assets 55,212,443 61,052,250
LIABILITIES:
Refunds payable for excess
contributions - 46,568
----------------- -----------------
Net assets available for
benefits $55,212,443 $61,005,682
================= =================
See accompanying notes to financial statements.
2
Artesyn Technologies, Inc.
Employees' Tax-Favored Thrift and Savings Plan
Statement of Changes in Net Assets Available for Benefits
for the Year Ended December 31, 2000
ADDITIONS:
Contributions:
Employer $ 1,535,507
Participant 5,876,001
-------------------
Total contributions 7,411,508
Dividends 3,491,817
-------------------
Total additions 10,903,325
-------------------
DEDUCTIONS:
Net depreciation in fair value of investments (11,244,367)
Benefits paid to participants (5,348,366)
Fees and other charges (6,500)
Other (97,331)
-------------------
Total deductions (16,696,564)
-------------------
NET DECREASE IN NET ASSETS AVAILABLE
FOR BENEFITS (5,793,239)
NET ASSETS AVAILABLE FOR BENEFITS
Beginning of year 61,005,682
-------------------
End of year $ 55,212,443
===================
See accompanying notes to financial statements.
3
Artesyn Technologies, Inc.
Employees' Tax-Favored Thrift and Savings Plan
Notes to Financial Statements
As of December 31, 2000
_______________________
1. PLAN DESCRIPTION
The following description of the Artesyn Technologies, Inc. Employees' Tax-
Favored Thrift and Savings Plan (the "Plan") provides only general
information. Participants should refer to the plan document for a more
complete description of the Plan's provisions.
General
The Plan was established in January 1979. During 1993, the Plan adopted a
prototype plan established by Connecticut General Life Insurance Company
("Cigna"). The Plan, as amended, is a defined contribution plan which
provides that all employees who have attained the age of 18 by the Plan
entrance date and who have three months of service with Artesyn
Technologies, Inc. ("Artesyn") become eligible to participate. The Plan is
subject to the provisions of the Employee Retirement Income Security Act of
1974 ("ERISA"), as amended.
Plan Administration
As of January 1, 1999, Artesyn entered into an agreement whereby Putnam
Fiduciary Trust Company (the "Trustee") was appointed trustee of the Plan.
Under the terms of the agreement, the Trustee holds and invests the funds
of the Plan subject to the direction of the Plan Administrator. Management
of Artesyn serves as the Plan Administrator.
Contributions and Vesting
Each year, participants may elect to contribute up to 20% of their pretax
annual compensation, as defined in the Plan agreement, through payroll
deductions subject to certain limitations. Participants are immediately
vested in their contributions plus earnings thereon. In 2000, qualified
employees could contribute up to $10,500, as limited by the Internal
Revenue Code ("IRC"). Matching contributions may be made to the Plan by
Artesyn at the discretion of its Board of Directors up to 50% of the first
6% of compensation (as defined in the Plan) that a participant contributes
to the Plan. In 2000, employee contributions were matched at 50% of the
first 6% of compensation.
Under the Plan, the Plan Administrator has the right to direct the
investment of the matching contribution. The Plan Administrator provides
that currently 100% of such contribution is to be invested in Artesyn's
Stock Fund. Vesting in Artesyn's matching contributions plus earnings
thereon occurs at a rate of 20% for each year in which an employee
completes 1,000 hours of service, except that such amounts become fully
vested upon a participant's retirement, death or termination of employment
because of inability to work due to total or permanent disability. The
forfeited, non-vested interest in participants' accounts may be used to
reduce Artesyn's matching contribution or reduce the reasonable expenses of
the administration of the Plan. In 2000, $51,861 was forfeited and used to
reduce Artesyn's matching contributions.
4
Investment Options
Participants may elect to invest in any of the available fund options.
Participants are allowed to change the investment election for future
salary deferral contributions or to transfer their existing accounts among
the available investments at any time. The following is a description of
investment options currently offered by the Plan to participants:
. The Artesyn Stock Fund invests in Artesyn's common stock.
. The George Putnam Fund of Boston seeks both income and growth of capital
by investing in equity and investment grade fixed income securities with
income, growth and capital appreciation potential.
. The Putnam Fund for Growth and Income seeks equity securities that have
both capital growth potential and current income in the form of regular
dividends.
. The Putnam Investors Fund seeks long-term capital appreciation by
investing in equity securities of larger, well-established companies.
These firms are selected from a range of industries to ensure a
significant level of diversification.
. The Putnam Income Fund seeks fixed income securities of corporations and
governments worldwide, that are either investment-grade or below
investment-grade, with intermediate or long-term maturities.
. The Putnam OTC and Emerging Growth Fund seeks capital appreciation by
investing primarily in common stocks traded in the Over-the-Counter
market and common stock of small to medium sized companies listed on
designated securities exchanges that have potential for capital
appreciation greater than market averages.
. The Putnam New Opportunities Fund seeks long-term capital appreciation
by investing in equity securities of companies in the fastest growing
industry sectors.
. The Putnam International Growth Fund seeks to invest mainly in common
stocks of mid-size and large companies outside the United States. The
fund seeks capital appreciation in the stocks of companies who are
undervalued and companies whose earnings will grow faster than the
economy as a whole.
. The Putnam S&P 500 Index Fund seeks securities that constitute the
Standard & Poor's Composite Stock Price Index, a common measure of U.S.
market performance, in order to closely approximate its performance.
. The Putnam Bond Index Fund will achieve a return that closely
approximates the Lehman Brothers Aggregate Bond Index, a common measure
of U.S. investment-grade bond market performance. The fund will invest
directly in the securities that constitute the index, either directly or
through the purchase of shares of collective investment trusts.
. Putnam Stable Value Fund is a collective investment trust that seeks
high quality guaranteed investment contracts issued by insurance
companies, banks, and other financial institutions. The fund may also
invest up to 50% of its balance in fixed income securities owned by the
fund or "wrapped" by a financial institution.
Participant Accounts
Individual accounts are maintained for each of the Plan's participants to
reflect each participant's share of the Plan's income (losses), Artesyn's
contributions and the participant's contributions. Allocations of the
Plan's income (losses), forfeitures of terminated participants' nonvested
accounts and administrative expenses are based on participant account
balances, as defined.
5
Loans to Participants
Participants may borrow the lesser of $50,000 or 50% of their vested
account balance with a minimum loan amount of $1,000. Loans are repayable
primarily through payroll deductions over periods ranging up to 60 months
unless the loan is for the purchase of a primary residence, in which case a
reasonable period is determined at the time of the loan. The interest rate
is determined by the Plan Administrator based on prevailing market
conditions and is fixed over the life of the loan. Interest rates on
outstanding loans range from 6.00% to 11.25%.
Benefits
Upon termination of services due to death, disability or retirement, a
participant may elect to receive either a lump-sum distribution equal to
his or her vested account balance or a life annuity. In addition, hardship
distributions are permitted if certain criteria are met.
Plan Termination
Although it has not expressed any intent to do so, Artesyn has the right 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 fully vested in their accounts and the Plan will continue until
all accounts have been distributed.
2. SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The accompanying financial statements are prepared on the accrual basis of
accounting.
Use of Estimates
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States 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.
Valuation of Investments and Income Recognition
The Plan follows Statement of Position No. 94-4 "Reporting of Investment
Contracts Held by Health and Welfare Benefit Plans and Defined Contribution
Pension Plans" ("SOP 94-4") which specifies the accounting for investment
contracts issued by either an insurance enterprise or other entity.
The Putnam Stable Value Fund (the "Stable Value Fund") is a collective
investment trust offered as an investment by the Plan. The Stable Value
Fund invests mainly in Guaranteed Investment Contracts and security backed
investments "wrapped" by insurance companies, banks, and other financial
institutions. The Stable Value Fund maintains the contributions from the
participants in a pooled account. The account is credited with earnings on
the underlying investments and charged for Plan withdrawals and
administrative expenses. There are no reserves against contract value for
credit risk of the issuers of the contracts or otherwise.
6
The Stable Value Fund is fully benefit-responsive and, in accordance with
SOP 94-4, is recorded at contract value, which approximates fair value.
Contract value represents contributions made under the contract, plus
accrued interest. The crediting interest rate and average effective yield
on this account, which equals the average crediting interest rate, were as
follows:
Crediting interest rate - January 1, 1999 & December 31, 1999 5.56%
Average yield 5.77%
Crediting interest rate - January 1, 2000 & December 31, 2000 6.18%
Average yield 6.45%
Investments in the Artesyn Stock Fund are stated at fair value based on the
last reported sales price on the last business day of the year. Shares of
listed mutual funds are valued at their quoted market prices which
represent the net asset value of shares held by the Plan at year-end.
Investments in participant loans are valued at cost which approximates fair
value.
Purchases and sales of securities are recorded on a trade date basis.
Interest income is recorded on the accrual basis. Dividends are recorded
on the ex-dividend date.
Payment of benefits
Benefits are recorded when paid.
Administrative Expenses
Except for certain investment fees and charges, expenses of the Plan for
legal, accounting and other administrative services are paid by Artesyn.
For 2000, $36,668 was paid by the Company on behalf of the Plan.
Reclassifications
Certain prior year amounts have been reclassified to conform to the current
year's presentation.
7
3. INVESTMENTS
The following table presents the individual investment securities that
exceeded 5% of the Plan's net assets available for benefits at December 31,
2000 and 1999:
2000 1999
----------- -----------
Participant Directed Investments:
Putnam Stable Value Fund, 12,455,387 shares
in 2000 and 13,411,525 shares in 1999 $12,455,387 $13,411,525
Putnam Investors Fund, 450,012 shares in 2000
and 481,216 shares in 1999 6,912,188 9,215,288
Putnam Fund for Growth and Income, 318,792
shares in 2000 and 333,814 shares in 1999 6,226,008 6,259,011
Putnam International Growth Fund, 201,543
shares in 2000 and 183,452 shares in 1999 4,980,122 5,444,852
Putnam New Opportunities Fund, 84,281 shares
in 2000 and 63,272 shares in 1999 4,940,559 5,755,215
Putnam OTC and Emerging Growth Fund, 338,206
shares in 2000 and 194,348 shares in 1999 4,707,826 7,192,822
Putnam S&P 500 Index Fund, 94,486 shares in
2000 and 109,136 shares in 1999 2,993,303 3,813,232
Artesyn Stock Fund, 344,724 shares in 2000
and 218,001 shares in 1999 5,475,552 4,578,021
During 2000, the Plan's investments (including gains and losses on
investments bought and sold, as well as held during the year) depreciated
in value by $11,244,367 as follows:
Mutual funds $(11,767,044)
Artesyn Stock Fund 522,677
-----------------
$(11,244,367)
=================
4. TAX STATUS
The Plan obtained its latest determination letter in 1995, in which the
Internal Revenue Service stated that the Plan, as then designed, was in
compliance with the applicable requirements of the IRC. The Plan has been
amended since receiving the determination letter, and Artesyn has requested
a new determination letter on the restated Plan. Artesyn believes the Plan
is designed and is being operated in compliance with the applicable
requirements of the IRC, and that the Plan, therefore, continues to qualify
under Section 401 (k) and the related trust continues to be tax-exempt as
of December 31, 2000. Therefore, no provision for income taxes is included
in the Plan's financial statements.
5. RELATED PARTY TRANSACTIONS
The Plan regularly invests in common trust funds and mutual funds managed
by the Trustee. These transactions are not considered prohibited
transactions by statutory exemptions under ERISA regulations.
8
Schedule I
Artesyn Technologies, Inc.
Employees' Tax-Favored Thrift and Savings Plan
Schedule H, Part IV, line 4i - Schedule of Assets Held for Investment Purposes
As of December 31, 2000
Description of Investment
Including Maturity Date, Rate of
Identity of Issue, Borrower, Lessor Interest, Collateral, Par or
or Similar Party Maturity Value Cost Fair Value
- ------------------------------------ ---------------------------------- ---------------- ----------------
Putnam Stable Value Fund (a) Mutual fund, variable rate and
maturity 12,455,387 12,455,387
Putnam Investors Fund (a) Mutual fund, variable rate and
maturity 6,956,623 6,912,188
Putnam Fund for Growth & Income (a) Mutual fund, variable rate and
maturity 6,461,716 6,226,008
Putnam New Opportunities Fund (a) Mutual fund, variable rate and
maturity 6,060,011 4,940,559
Putnam International Growth Fund (a) Common/collective trust, variable
rate and maturity 4,624,479 4,980,122
Putnam OTC and Emerging Growth Fund Mutual fund, variable rate and
(a) maturity 7,809,096 4,707,826
Putnam S&P 500 Index Fund (a) Mutual fund, variable rate and
maturity 2,954,772 2,993,303
George Putnam Fund of Boston (a) Mutual fund, variable rate and
maturity 2,722,253 2,642,427
Putnam Income Fund (a) Mutual fund, variable rate and
maturity 768,823 747,520
Putnam Bond Index Fund (a) Mutual fund, variable rate and
maturity 295,140 300,317
Artesyn Technologies, Inc. (a) Company common stock fund
6,106,620 5,475,552
Loan Fund Loans from participants, 6.00% to
11.25% rates, variable maturity
1,191,160 1,191,160
------------------ ------------------
TOTAL $58,406,080 $53,572,369
================== ==================
(a) Represents a party-in-interest investment.
9
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Plan Administrators have duly caused this annual report to be signed by the
undersigned, thereunto duly authorized.
Artesyn Technologies, Inc.
Employees' Tax-Favored
Thrift And Savings Plan
-----------------------
(Name of Plan)
By: /s/Pauline G. Thomas .
--------------------------------
Pauline G. Thomas
Plan Administrator
Date: June 27, 2001.
10