<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------------------------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) :
July 28, 2000
---------------------------------------------------
Lucent Technologies Inc.
--------------------------------------
(Exact name of registrant as specified in its charter)
Delaware
--------------------------------------------------
(State or other jurisdiction of incorporation)
1-11639 22-3408857
(Commission File Number) (IRS Employer Identification No.)
600 Mountain Avenue, Murray Hill, New Jersey 07974
---------------------------------------------- ---------------
(Address of principal executive offices) (Zip Code)
(908) 582-8500
---------------------------------------------------
(Registrant's Telephone Number)
<PAGE> 2
Form 8-K
Item 5. Other Events
Lucent Technologies Inc. ("Lucent" or the "Company") previously announced a
plan to spin-off its PBX, SYSTIMAX(R) structured cabling and LAN-based data
businesses to its shareowners, forming a separate company named Avaya Inc. that
will focus directly and independently on the enterprise networking market.
The spin off is expected to be completed by the close of the fourth quarter of
fiscal 2000, which ends on September 30, 2000 and is expected to be
accomplished through a tax-free distribution of shares to Lucent shareowners.
The accompanying pro forma financial statements reflect the treatment of the
enterprise networks business as discontinued operations and were prepared
consistent with Accounting Principles Board Opinion No. 30 "Reporting the
Results of Operations - Reporting the Effects of Disposal of a Segment of a
Business, and Extraordinary, Unusual and Infrequently Occurring Events and
Transactions" ("APB 30"). The revenues, costs and expenses and assets and
liabilities of the enterprise networks business to be spun off have been
segregated in the accompanying pro forma Consolidated Statements of Income and
Consolidated Balance Sheets. The net operating results and net assets of this
business have been reported as "Discontinued Operations" in the accompanying pro
forma financial statements.
The discontinued operations financial information presented by Lucent will
differ from the information reported by the enterprise networks business because
of different assumptions and allocations required to be made by the two
companies.
The Company's pro forma Consolidated Statements of Income for the six months
ended March 31, 2000 and March 31, 1999 and the three years ended September 30,
1999, 1998 and 1997 and pro forma Consolidated Balance Sheet at March 31, 2000
and September 30, 1999 prepared consistent with APB 30 follow.
<PAGE> 3
Form 8-K
LUCENT TECHNOLOGIES INC. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Millions Except Per Share Amounts)
(Unaudited)
<TABLE>
<CAPTION>
For the Six For the Years
Months Ended March 31, Ended September 30,
2000 1999 1999 1998 1997
<S> <C> <C> <C> <C> <C>
Revenues............................. $ 16,420 $ 14,866 $ 30,617 $ 24,367 $ 21,483
Costs................................ 9,180 7,141 15,605 12,938 12,268
Gross margin......................... 7,240 7,725 15,012 11,429 9,215
Operating Expenses:
Selling, general and
administrative expenses ........... 2,763 2,601 5,806 4,424 4,191
Research and development expenses ... 1,965 2,072 4,220 3,667 3,022
In-process research
and development expenses............ 11 290 292 1,385 783
Total operating expenses............. 4,739 4,963 10,318 9,476 7,996
Operating income..................... 2,501 2,762 4,694 1,953 1,219
Other income - net .................. 232 40 402 110 84
Interest expense..................... 162 129 318 143 148
Income from continuing operations
before income taxes................. 2,571 2,673 4,778 1,920 1,155
Provision for income taxes........... 823 969 1,752 1,151 702
Income from continuing operations.... $ 1,748 $ 1,704 $ 3,026 $ 769 $ 453
Income from discontinued operations
(net of tax of $138, $71, $256,
$347, and $321 respectively) 256 67 455 296 17
Income before cumulative effect
of accounting change................ 2,004 1,771 3,481 1,065 470
Cumulative effect of accounting change
(net of income taxes of $842)....... - 1,308* 1,308* - -
Net income........................... $ 2,004 $ 3,079 $ 4,789 $ 1,065 $ 470
Earnings per common share - basic:
Income from continuing operations.... $ 0.55 $ 0.55 $ 0.97 $ 0.25 $ 0.15
Income from discontinued operations.. 0.08 0.02 0.15 0.10 0.01
Cumulative effect of accounting
change ............................ - 0.43 0.42 - -
Net income.......................... $ 0.63 $ 1.00 $ 1.54 $ 0.35 $ 0.16
Earnings per common share - diluted:
Income from continuing operations.... $ 0.53 $ 0.53 $ 0.94 $ 0.25 $ 0.15
Income from discontinued operations.. 0.08 0.02 0.14 0.09 0.01
Cumulative effect of accounting
change ............................ - 0.41 0.41 - -
Net income.......................... $ 0.61 $ 0.96 $ 1.49 $ 0.34 $ 0.16
Dividends declared
per common share................... $ 0.04 $ 0.04 $ 0.08 $ 0.08 $ 0.06
</TABLE>
* A one-time, after-tax gain from the cumulative effect of an accounting change
for a change in pension and post-retirement accounting for the first fiscal
quarter of 1999.
<PAGE> 4
Form 8-K
LUCENT TECHNOLOGIES INC. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED BALANCE SHEETS
(Dollars in Millions Except Per Share Amounts)
(Unaudited)
<TABLE>
<CAPTION>
March 31, September 30,
2000 1999
ASSETS
<S> <C> <C>
Cash and cash equivalents.............. $ 1,550 $ 1,686
Receivables less allowances
of $288 and $318...................... 9,091 8,799
Inventories............................ 4,488 4,240
Contracts in process, net of contract
billings of $5,778 and $5,565......... 1,416 1,102
Deferred income taxes - net............ 1,469 1,472
Other current assets................... 1,695 1,941
Total current assets................... 19,709 19,240
Property, plant and equipment, net
of accumulated depreciation of
$6,920 and $6,770.................... 6,353 6,219
Prepaid pension costs.................. 5,660 5,459
Capitalized software development costs. 513 436
Goodwill, net of accumulated
amortization of $575 and $502........ 1,024 960
Other assets........................... 2,283 2,151
Net assets of discontinued operations.. 964 907
TOTAL ASSETS........................... $36,506 $35,372
</TABLE>
(CONT'D)
<PAGE> 5
Form 8-K
LUCENT TECHNOLOGIES INC. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED BALANCE SHEETS (CONT'D)
(Dollars in Millions Except Per Share Amounts)
(Unaudited)
<TABLE>
<CAPTION>
March 31, September 30,
2000 1999
LIABILITIES
<S> <C> <C>
Accounts payable....................... $ 2,178 $ 2,537
Payroll and benefit-related
liabilities.......................... 941 1,675
Postretirement and postemployment
benefit liabilities.................. 78 113
Debt maturing within one year.......... 935 1,705
Other current liabilities.............. 2,816 3,120
Total current liabilities.............. 6,948 9,150
Postretirement and postemployment
benefit liabilities.................. 5,324 5,651
Long-term debt ........................ 3,831 4,162
Other liabilities...................... 2,821 2,473
Total liabilities ..................... 18,924 21,436
Commitments and contingencies
SHAREOWNERS' EQUITY
Preferred stock-par value $1.00 per share
Authorized shares: 250,000,000
Issued and outstanding shares: none... - -
Common stock-par value $.01 per share
Authorized shares: 10,000,000,000
Issued and outstanding shares:
3,203,813,453 at March 31, 2000
3,142,537,636 at September 30, 1999... 32 31
Additional paid-in capital............. 9,830 7,994
Guaranteed ESOP obligation............. (26) (33)
Retained earnings...................... 8,050 6,188
Accumulated other comprehensive
income (loss)......................... (304) (244)
Total shareowners' equity.............. 17,582 13,936
TOTAL LIABILITIES AND
SHAREOWNERS' EQUITY................... $36,506 $35,372
</TABLE>
<PAGE> 6
Form 8-K
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Lucent Technologies Inc.
Dated: July 28, 2000
By: /s/ James S. Lusk
-------------------------
By James S. Lusk
Senior Vice President and Controller
(Principal Accounting Officer)