<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended: December 31, 1996
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: 0-20609
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
WHITTAKER CORPORATION PARTNERSHIP PLAN
B. Name of issuer of the Securities held pursuant to the plan and the
address of its principal executive office:
WHITTAKER CORPORATION
1955 N. SURVEYOR AVENUE
SIMI VALLEY, CALIFORNIA 93063-3386
<PAGE>
Audited Financial Statements
and Supplemental Schedules
Whittaker Corporation Partnership Plan
Years ended December 31, 1996 and 1995
with Report of Independent Auditors
<PAGE>
Whittaker Corporation Partnership Plan
Audited Financial Statements
and Supplemental Schedules
Years ended December 31, 1996 and 1995
CONTENTS
<TABLE>
<S> <C>
Report of Independent Auditors................................ 1
Audited 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
Supplemental Schedules
Schedule of Assets Held for Investment Purposes............... 18
Schedule of Reportable Transactions........................... 20
</TABLE>
<PAGE>
Report of Independent Auditors
To the Administrative Committee
Whittaker Corporation Partnership Plan
We have audited the accompanying statements of net assets available for benefits
of the Whittaker Corporation Partnership Plan (the Plan) as of December 31, 1996
and 1995, and the related statements of changes in net assets available for
benefits for the years then ended. 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 net assets available for benefits of the Plan as of
December 31, 1996 and 1995, and the changes in its net assets available for
benefits for the years then ended, 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, 1996, and reportable
transactions for the year then ended, are presented for 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 financial statements. The supplemental schedules have
been subjected to the auditing procedures applied in our audit of the 1996
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the 1996 financial statements taken as a whole.
ERNST & YOUNG LLP
June 20, 1997
1
<PAGE>
Whittaker Corporation Partnership Plan
Statements of Net Assets Available for Benefits
<TABLE>
<CAPTION>
DECEMBER 31
1996 1995
--------------------------------
<S> <C> <C>
ASSETS
Cash $ 21,916 $ 354,871
Investments, at fair value (Note 3) 34,503,538 33,624,291
Receivables:
Contributions 101,061 2,044,691
Accrued interest and dividends 40,779 110,896
Other 27,391 --
--------------------------------
Total assets 34,694,685 36,134,749
--------------------------------
LIABILITIES
Accrued expenses 53,979 40,320
Other 24,739 23,576
--------------------------------
Total liabilities 78,718 63,896
--------------------------------
Net assets available for benefits $34,615,967 $36,070,853
================================
</TABLE>
See accompanying notes.
2
<PAGE>
Whittaker Corporation Partnership Plan
Statements of Changes in Net Assets Available for Benefits
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
1996 1995
-------------------------------
<S> <C> <C>
Additions to net assets attributed to:
Investment income:
Net realized and unrealized appreciation
(depreciation) in fair value of investments
(Note 3) $(1,328,261) $1,488,791
Interest and dividend income 1,486,051 2,011,308
Contributions:
Participants 2,434,627 2,508,283
Employer 881,888 2,813,406
-------------------------------
Total additions 3,474,305 8,821,788
Deductions from net assets attributed to:
Benefits paid to participants (Note 2) 4,769,033 6,278,344
Administrative expenses 160,158 178,620
-------------------------------
Total deductions 4,929,191 6,456,964
-------------------------------
Net (decrease) increase (1,454,886) 2,364,824
Net assets available for benefits at beginning
of year 36,070,853 33,706,029
-------------------------------
Net assets available for benefits at end of year $34,615,967 $36,070,853
===============================
</TABLE>
See accompanying notes.
3
<PAGE>
Whittaker Corporation Partnership Plan
Notes to Financial Statements
December 31, 1996
1. SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The accompanying financial statements of the Whittaker Corporation Partnership
Plan (the Plan) are prepared on the accrual basis of accounting.
VALUATION OF INVESTMENTS
Investments in securities are stated at fair value. The investments in Whittaker
Corporation and BioWhittaker, Inc. common stock are stated at fair value based
on closing sales prices on the last business day of the year. Investments in
mutual funds are based upon redemption value on the last business day of the
year as determined by the investment manager. The mutual fund investment
portfolios may include transactions with off-balance sheet risks. However, the
Plan's exposure to risk is limited to the amount of its investment in the mutual
fund.
Statement of Position 94-4, "Reporting of Investment Contracts Held by Health
and Welfare Benefit Plans and Defined Contribution Pension Plans" (SOP 94-4)
requires that the Plan change its method of valuing deposits with insurance
companies from contract value to fair value effective January 1, 1996. Contract
value represents contributions made under the contract plus interest at the
contract rate, less periodic distributions. Deposits with insurance companies
are stated at contract value, which approximates fair value.
Investments in Schwab Retirement Money Fund and Schwab Institutional Advantage
Money Fund, which are short-term investment funds, are carried at cost which
approximates fair value.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
4
<PAGE>
Whittaker Corporation Partnership Plan
Notes to Financial Statements (continued)
1. Significant Accounting Policies (CONTINUED)
RECLASSIFICATION
Certain previously reported 1995 balances have been reclassified to conform with
the 1996 presentation.
2. DESCRIPTION OF THE PLAN
The Plan is a defined contribution plan to which eligible employees may
voluntarily elect to contribute stated percentages of their compensation (as
defined). Prior to July 1, 1996, an employee of Whittaker Corporation (the
Company) was generally eligible to become a participant after completion of 90
days of eligibility service. Effective July 1, 1996, the Plan was amended to
change the date of eligibility to commence with employment. Participants should
refer to the Summary Plan Description and Plan document for more complete
information.
CONTRIBUTIONS
Participants may voluntarily contribute through salary deferrals up to 12% of
aggregate compensation received during all periods of participation. Effective
January 1, 1996, salary deferral contributions were limited to $9,500 per
calendar year, subject to upward adjustment pursuant to the Internal Revenue
Code.
The Company contributes on behalf of the participant an amount which is based on
the participant's contributions. The Company's matching contributions are
invested primarily in the Whittaker Common Stock Fund.
In addition to matching contributions, starting with the 1995 fiscal year, the
Company, at the discretion of the board of directors, may contribute on behalf
of the participants amounts based on the attainment of certain pre-established
goals for the Company, subject to certain limitations. At December 31, 1995,
contributions receivable included the Company's 1995 profit sharing
contributions of $1,891,468. There were no profit sharing contributions for
fiscal 1996.
5
<PAGE>
Whittaker Corporation Partnership Plan
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
INVESTMENT OPTIONS
The individual accounts of each participant are held and invested by the Charles
Schwab Trust Company (the Trustee) in one or more of the following funds, in
accordance with the available investment options selected by the participant:
Whittaker Common Stock Fund - An unsegregated fund which may only invest in
Common Stock of the Company and securities convertible into Common Stock of
the Company, or warrants or other rights to purchase Common Stock of the
Company received as a result of holdings of such Common Stock.
Stable Value Asset Fund - An unsegregated fund invested in guaranteed-income
contracts issued by various insurance companies, Franklin Stable Value Fund,
Dreyfus-Certus Stable Value Fund, and high quality money market instruments.
The fund may also invest in U.S. government and U.S. government agency
securities.
High Quality Intermediate Corporate Bond Fund - Invested in Fidelity
Intermediate Bond Fund, a mutual fund which invests in high-quality corporate
obligations, U.S. government securities, obligations of major U.S. banks,
prime commercial paper, and other similar instruments.
Balanced Fund - Invested in T. Rowe Price Balanced Fund, Inc., a mutual fund
which invests approximately 60% of its assets in common stocks and at least
25% of its assets in senior fixed income securities. The fund may invest up to
15% of its assets in foreign securities, and up to 20% of its assets in
mortgage-backed securities. The fund may also invest up to 10% of its assets
in debt securities rated below investment grade.
Growth Fund - Invested in Twentieth Century Investors, Inc., Growth Investors,
a mutual fund which invests in equity securities of large, established
companies having positive trends in both earnings and revenues, and a high
degree of liquidity. Up to 10% of fund assets may be held in cash.
International Equity Fund - Invested in Templeton Foreign Fund series of
Templeton Funds, Inc., a mutual fund which invests primarily in stocks and
debt securities of companies outside of the U.S. It maintains a flexible
investment policy and can invest in a broad variety of different types of
securities and in any foreign country, developed or undeveloped. The fund may
invest up to 5% of its assets in medium-quality or high-risk lower-quality
debt securities.
6
<PAGE>
Whittaker Corporation Partnership Plan
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
Value Fund - Invested in Scudder Growth and Income Fund, a mutual fund which
invests primarily in stocks that are undervalued relative to the overall stock
market. Dividend yield is one of the primary valuation characteristics
utilized in stock selection. This fund was added as an investment option
effective October 1, 1996.
BioWhittaker, Inc. Common Stock Fund - An unsegregated fund invested in
BioWhittaker, Inc. Common Stock. This fund was established in December 1991 as
a result of Whittaker Corporation's spin-off of BioWhittaker, Inc. and a
resulting distribution of BioWhittaker, Inc. Common Stock to the Plan. No
future contributions or transfers can be directed to this fund.
Participant Loan Fund - Plan participants may borrow the lesser of $50,000 or
one half of the participants' vested value in certain accounts. Amounts
borrowed must be repaid within five years, unless the loan is used for the
purchase of a primary residence, which requires repayment within 15 years.
Interest is charged at the trustee's prime rate at the date of loan approval.
VESTING
Amounts (other than profit sharing contributions) allocated to a participant's
account are fully vested. Amounts allocated to a participant's profit sharing
account become vested at 20% per year of eligibility service, beginning with the
third year of service, and are fully vested with seven or more years of service.
Participants who terminate employment with the Company forfeit their unvested
account balance. All amounts forfeited are used to reduce the Company's
discretionary and matching contributions to be made in the Plan year that
amounts are forfeited.
UNALLOCATED PLAN ASSETS
During 1992, the Whittaker Common Stock Fund received certain amounts
representing its share of the proceeds from a class action legal settlement. It
has not yet been determined how these unallocated Plan assets will be allocated
among current and former participants.
7
<PAGE>
Whittaker Corporation Partnership Plan
Notes to Financial Statements (continued)
2. DESCRIPTION OF THE PLAN (CONTINUED)
DISTRIBUTIONS
Distributions are payable to participants or their beneficiaries in a lump-sum
amount equal to their vested account balances upon retirement, disability, death
or termination of employment. At December 31, 1996 and 1995, distributions
payable to terminated, retired, or withdrawing employees were not material.
TERMINATION PROVISIONS
The Company has the right to discontinue its contributions at any time and to
terminate the Plan. In the event of such termination, participants will receive
a distribution equal to the vested value of their individual accounts.
3. INVESTMENTS
The Plan's investments are held by Charles Schwab Trust Company. During 1996 and
1995, the Plan's investments (including investments bought, sold, as well as
held during the year) appreciated (depreciated) in fair value as follows:
<TABLE>
<CAPTION>
NET
APPRECIATION
(DEPRECIATION) FAIR VALUE
IN FAIR VALUE AT END
DURING YEAR OF YEAR
-------------------------------
<S> <C> <C>
Year ended December 31, 1996:
Schwab Retirement Money Fund $ -- $ 574,793
Schwab Institutional Advantage Money Fund -- 821,167
Whittaker Corporation Common Stock (2,996,389) 4,018,209
Fidelity Intermediate Bond Fund (54,231) 1,698,474
T. Rowe Price Balanced Fund, Inc. 503,886 6,048,269
Twentieth Century Investors Inc., Growth
Investors 751,855 5,143,910
Templeton Foreign Fund series of Templeton
Funds, Inc. 462,433 3,981,805
Scudder Growth and Income Fund (1,770) 1,292,580
BioWhittaker, Inc. Common Stock 5,955 641,120
Participant loans -- 2,038,696
Dreyfus-Certus Stable Value Fund -- 4,947,741
Amounts held by insurance companies in group
annuity contracts -- 3,296,774
-------------------------------
$(1,328,261) $34,503,538
==============================
</TABLE>
8
<PAGE>
Whittaker Corporation Partnership Plan
Notes to Financial Statements (continued)
3. INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
NET
APPRECIATION
(DEPRECIATION) FAIR VALUE
IN FAIR VALUE AT END
DURING YEAR OF YEAR
------------------------------
<S> <C> <C>
Year ended December 31, 1995:
Schwab Retirement Money Fund $ -- $ 1,557,990
Whittaker Corporation Common Stock 394,189 6,932,573
Fidelity Intermediate Bond Fund 82,380 1,577,605
T. Rowe Price Balanced Fund, Inc. 727,569 4,818,228
Twentieth Century Investors Inc., Growth
Investors 90,131 5,159,704
Templeton Foreign Fund series of Templeton
Funds, Inc. 132,827 3,473,205
BioWhittaker, Inc. Common Stock 61,695 678,068
Participant loans -- 1,680,351
Franklin Stable Value Fund -- 2,484,868
Amounts held by insurance companies in group
annuity contracts -- 5,261,699
-----------------------------
$1,488,791 $33,624,291
=============================
</TABLE>
The fair value of individual investments that represent 5% or more of the Plan's
net assets are as follows:
<TABLE>
<CAPTION>
DECEMBER 31
1996 1995
----------------------------
<S> <C> <C>
Whittaker Corporation Common Stock $4,018,209 $6,932,573
T. Rowe Price Balanced Fund, Inc. 6,048,269 4,818,228
Twentieth Century Investors Inc., Growth
Investors 5,143,910 5,159,704
Templeton Foreign Fund series of Templeton
Funds, Inc. 3,981,805 3,473,205
Franklin Stable Value Fund -- 2,484,868
Dreyfus-Certus Stable Value Fund 4,947,741 --
Aetna Life Insurance Company, Group Annuity
Contract, 5.22%, 50% matures February 17,
1997, remainder matures September 15, 1997 1,781,565 --
</TABLE>
9
<PAGE>
Whittaker Corporation Partnership Plan
Notes to Financial Statements (continued)
3. INVESTMENTS (CONTINUED)
At December 31, 1996, the Stable Value Asset Fund held $3,296,774 of group
annuity contracts with three separate insurance companies. Total annual
principal installments to be received under these contracts, based on contract
terms, are $1,781,565 in 1997 and $1,515,209 in 1998. Early withdrawals are
permitted under certain of these contracts but are subject to adjustments, the
most restrictive of which is a forfeiture of interest on amounts withdrawn and
that any withdrawals will reduce the next scheduled installment. There are no
reserves against these contracts for credit risk of the contract issuer or
otherwise. The average yields and crediting interest rates ranged from
approximately 4.65% to 8.25% during 1996 and 1995.
At December 31, 1996, the Stable Value Asset Fund held an investment of $475,369
in a group annuity contract with Aurora National Life Assurance Company (ANLAC).
In April 1991, Executive Life Insurance Company (ELIC), which was the original
issuer of the contract, was placed in a court-supervised conservatorship by the
California State Insurance Commissioner. The ELIC contract, which was scheduled
to mature January 9, 1993, went into default on that date. A realized loss of
$135,896 was recognized during 1993 to reflect the contract at its restructured
contract value of $488,896. During 1993, the contract was transferred to ANLAC
by reinsurance and assumption after being restructured, pursuant to the order of
the California Superior Court.
Each participant's share in the Executive Life group annuity contract as of June
30, 1991, has been segregated within the Stable Value Asset Fund, and a detailed
record of such is being maintained by the Trustee until the scheduled maturity
of the contract in 1998. Accordingly, Stable Value Asset Fund distributions,
transfers, and withdrawals after June 1991 do not include the segregated asset
and new contributions have not been affected.
10
<PAGE>
Whittaker Corporation Partnership Plan
Notes to Financial Statements (continued)
4. INVESTMENT FUNDS
The net assets available for benefits as of December 31, 1996 and 1995, for each
investment fund are as follows:
<TABLE>
<CAPTION>
WHITTAKER STABLE CORPORATE
COMMON STOCK VALUE ASSET BOND BALANCED GROWTH
1996 FUND FUND FUND FUND FUND
- ------------------------------- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Cash $ 16,681 $ 2,289 $ -- $ -- $ 2,675
Investments 4,611,623 9,027,119 1,700,336 6,054,898 5,149,548
Contributions receivable 28,853 20,739 4,550 13,958 16,249
Accrued interest and dividends -- 40,779 -- -- --
Other 2,887 9,241 1,652 5,087 4,393
-----------------------------------------------------------------------------
Total assets 4,660,044 9,100,167 1,706,538 6,073,943 5,172,865
-----------------------------------------------------------------------------
LIABILITIES
Accrued expenses 5,962 20,176 2,649 8,730 8,357
Other 24,739 -- -- -- --
-----------------------------------------------------------------------------
Total liabilities 30,701 20,176 2,649 8,730 8,357
-----------------------------------------------------------------------------
Net assets available for
benefits $4,629,343 $9,079,991 $1,703,889 $6,065,213 $5,164,508
=============================================================================
</TABLE>
<TABLE>
<CAPTION>
WHITTAKER STABLE CORPORATE
COMMON STOCK VALUE ASSET BOND BALANCED GROWTH
1995 FUND FUND FUND FUND FUND
- ------------------------------- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Cash $ 11,405 $ 147,279 $ 30,397 $ 28,239 $ 122,960
Investments 7,484,311 8,743,868 1,578,445 4,820,795 5,162,454
Contributions receivable 215,312 746,839 116,378 310,557 374,821
Accrued interest and dividends -- 37,721 8,743 -- --
-------------------------------------------------------------------------------
Total assets 7,711,028 9,675,707 1,733,963 5,159,591 5,660,235
-------------------------------------------------------------------------------
LIABILITIES
Accrued expenses 6,159 21,432 1,252 3,834 4,311
Interfund payable (receivable) (37,804) 21,376 (35,412) 29,253 (167,163)
Other 23,576 -- -- -- --
-------------------------------------------------------------------------------
Total liabilities (8,069) 42,808 (34,160) 33,087 (162,852)
-------------------------------------------------------------------------------
Net assets available for
benefits $7,719,097 $9,632,899 $1,768,123 $5,126,504 $5,823,087
===============================================================================
</TABLE>
11
<PAGE>
Whittaker Corporation Partnership Plan
Notes to Financial Statements (continued)
<TABLE>
<CAPTION>
INTERNATIONAL BIOWHITTAKER PARTICIPANT
EQUITY VALUE COMMON LOAN
1996 FUND FUND STOCK FUND FUND TOTAL
- ------------------------------- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Cash $ -- $ -- $ 271 $ -- $ 21,916
Investments 3,986,169 1,293,997 641,152 2,038,696 34,503,538
Contributions receivable 11,452 5,260 -- -- 101,061
Accrued interest and dividends -- -- -- -- 40,779
Other 3,646 485 -- -- 27,391
------------------------------------------------------------------------------------
Total assets 4,001,267 1,299,742 641,423 2,038,696 34,694,685
------------------------------------------------------------------------------------
Accrued expenses 5,985 1,036 1,084 -- 53,979
Other -- -- -- -- 24,739
------------------------------------------------------------------------------------
Total liabilities 5,985 1,036 1,084 -- 78,718
------------------------------------------------------------------------------------
Net assets available for benefits $3,995,282 $1,298,706 $640,339 $2,038,696 $34,615,967
====================================================================================
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL BIOWHITTAKER PARTICIPANT
EQUITY COMMON LOAN
1995 FUND STOCK FUND FUND TOTAL
- ------------------------------- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Cash $ 14,511 $ 80 $ -- $ 354,871
Investments 3,475,056 678,995 1,680,367 33,624,291
Contributions receivable 280,784 -- -- 2,044,691
Accrued interest and dividends 64,432 -- -- 110,896
-------------------------------------------------------------------
Total assets 3,834,783 679,075 1,680,367 36,134,749
-------------------------------------------------------------------
LIABILITIES
Accrued expenses 2,806 526 -- 40,320
Interfund payable (receivable) 187,233 2,517 -- --
Other -- -- -- 23,576
-------------------------------------------------------------------
Total liabilities 190,039 3,043 -- 63,896
-------------------------------------------------------------------
Net assets available for benefits $3,644,744 $676,032 $1,680,367 $36,070,853
===================================================================
</TABLE>
12
<PAGE>
Whittaker Corporation Partnership Plan
Notes to Financial Statements (continued)
4. INVESTMENT FUNDS (CONTINUED)
For the years ended December 31, 1996 and 1995, the changes in net assets
available for benefits of each investment fund are as follows:
<TABLE>
<CAPTION>
WHITTAKER STABLE CORPORATE
COMMON STOCK VALUE ASSET BOND BALANCED
1996 FUND FUND FUND FUND
- ------------------------------------------ -------------------------------------------------------------------
<S> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net appreciation (depreciation) in fair
value of investments $(2,996,389) $ -- $ (54,231) $ 503,886
Interest and dividends 26,679 640,945 116,531 253,530
-------------------------------------------------------------------
(2,969,710) 640,945 62,300 757,416
Contributions:
Participants 223,067 629,402 157,702 460,732
Employer matching 703,003 74,499 11,962 29,503
-------------------------------------------------------------------
926,070 703,901 169,664 490,235
Loan repayments 100,969 170,433 50,200 149,304
-------------------------------------------------------------------
Total additions (1,942,671) 1,515,279 282,164 1,396,955
Deductions from net assets attributed to:
Benefits paid to participants 853,737 1,553,012 197,417 643,518
Administrative expenses 19,384 65,395 7,094 24,464
Loans issued 30,167 531,251 83,756 217,449
-------------------------------------------------------------------
Total deductions 903,288 2,149,658 288,267 885,431
-------------------------------------------------------------------
Net increase (decrease) prior to
interfund transfers (2,845,959) (634,379) (6,103) 511,524
Interfund transfers, net (243,795) 81,471 (58,131) 427,185
-------------------------------------------------------------------
Net increase (decrease) (3,089,754) (552,908) (64,234) 938,709
Net assets available for benefits
at beginning of year 7,719,097 9,632,899 1,768,123 5,126,504
-------------------------------------------------------------------
Net assets available for benefits
at end of year $ 4,629,343 $9,079,991 $1,703,889 $6,065,213
===================================================================
</TABLE>
13
<PAGE>
Whittaker Corporation Partnership Plan
Notes to Financial Statements (continued)
<TABLE>
<CAPTION>
INTERNATIONAL BIOWHITTAKER PARTICIPANT
GROWTH EQUITY VALUE COMMON LOAN
1996 FUND FUND FUND STOCK FUND FUND TOTAL
- ------------------------------------------ ------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net appreciation (depreciation) in fair
value of investments $ 751,855 $ 462,433 $ (1,770) $ 5,955 $ -- $(1,328,261)
Interest and dividends 98,808 170,323 54,369 29 124,837 1,486,051
------------------------------------------------------------------------
850,663 632,756 52,599 5,984 124,837 157,790
Contributions:
Participants 559,913 376,793 27,018 -- -- 2,434,627
Employer matching 33,216 26,566 2,200 939 -- 881,888
------------------------------------------------------------------------
593,129 403,359 29,218 939 -- 3,316,515
Loan repayments 141,128 92,037 2,981 -- (707,052) --
------------------------------------------------------------------------
Total additions 1,584,920 1,128,152 84,798 6,923 (582,215) 3,474,305
Deductions from net assets attributed to:
Benefits paid to participants 685,555 567,654 -- 61,070 207,070 4,769,033
Administrative expenses 22,375 16,026 2,774 2,646 -- 160,158
Loans issued 174,700 110,291 -- -- (1,147,614) --
------------------------------------------------------------------------
Total deductions 882,630 693,971 2,774 63,716 (940,544) 4,929,191
------------------------------------------------------------------------
Net increase (decrease) prior to
interfund transfers 702,290 434,181 82,024 (56,793) 358,329 (1,454,886)
Interfund transfers, net (1,360,869) (83,643) 1,216,682 21,100 -- --
--------------------------------------------------------------------------
Net increase (decrease) (658,579) 350,538 1,298,706 (35,693) 358,329 (1,454,886)
Net assets available for benefits
at beginning of year 5,823,087 3,644,744 -- 676,032 1,680,367 36,070,853
--------------------------------------------------------------------------
Net assets available for benefits
at end of year $ 5,164,508 $3,995,282 $1,298,706 $640,339 $ 2,038,696 $34,615,967
==========================================================================
</TABLE>
14
<PAGE>
Whittaker Corporation Partnership Plan
Notes to Financial Statements (continued)
<TABLE>
<CAPTION>
WHITTAKER STABLE CORPORATE
COMMON STOCK VALUE ASSET BOND BALANCED
1995 FUND FUND FUND FUND
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net appreciation in fair value of
investments $ 394,189 $ -- $ 82,380 $ 727,569
Interest and dividends 53,623 602,727 106,455 255,074
-------------------------------------------------------------------
447,812 602,727 188,835 982,643
Contributions:
Participants 242,419 724,976 178,163 435,200
Employer matching 741,713 77,959 13,220 27,596
Employer profit sharing 172,903 708,526 110,322 290,887
-------------------------------------------------------------------
1,157,035 1,511,461 301,705 753,683
Loan repayments 98,492 134,691 27,307 90,208
-------------------------------------------------------------------
Total additions 1,703,339 2,248,879 517,847 1,826,534
Deductions from net assets attributed to:
Benefits paid to participants 520,430 4,846,896 71,798 248,207
Administrative expenses 30,293 71,895 7,452 22,591
Loans issued 9,041 231,940 43,755 96,184
-------------------------------------------------------------------
Total deductions 559,764 5,150,731 123,005 366,982
-------------------------------------------------------------------
1,143,575 (2,901,852) 394,842 1,459,552
Interfund transfers, net (93,576) (209,997) 120,681 (10,162)
-------------------------------------------------------------------
Net increase (decrease) 1,049,999 (3,111,849) 515,523 1,449,390
Net assets available for benefits
at beginning of year 6,669,098 12,744,748 1,252,600 3,677,114
-------------------------------------------------------------------
Net assets available for benefits
at end of year $7,719,097 $ 9,632,899 $1,768,123 $5,126,504
===================================================================
</TABLE>
15
<PAGE>
Whittaker Corporation Partnership Plan
Notes to Financial Statements (continued)
<TABLE>
<CAPTION>
INTERNATIONAL BIOWHITTAKER PARTICIPANT
GROWTH EQUITY COMMON LOAN
1995 FUND FUND STOCK FUND FUND TOTAL
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net appreciation in fair value of
investments $ 90,131 $ 132,827 $ 61,695 $ -- $ 1,488,791
Interest and dividends 743,455 249,629 217 128 2,011,308
------------------------------------------------------------------------------
833,586 382,456 61,912 128 3,500,099
Contributions:
Participants 479,831 447,694 -- -- 2,508,283
Employer matching 29,107 32,343 -- -- 921,938
Employer profit sharing 348,410 260,420 -- -- 1,891,468
------------------------------------------------------------------------------
857,348 740,457 -- -- 5,321,689
Loan repayments 103,093 73,636 -- (527,427) --
------------------------------------------------------------------------------
Total additions 1,794,027 1,196,549 61,912 (527,299) 8,821,788
Deductions from net assets attributed to:
Benefits paid to participants 224,146 179,204 79,441 108,222 6,278,344
Administrative expenses 24,373 16,330 5,686 -- 178,620
Loans issued 193,808 127,746 -- (702,474) --
------------------------------------------------------------------------------
Total deductions 442,327 323,280 85,127 (594,252) 6,456,964
------------------------------------------------------------------------------
1,351,700 873,269 (23,215) 66,953 2,364,824
Interfund transfers, net 557,237 (338,912) (25,271) -- --
------------------------------------------------------------------------------
Net increase (decrease) 1,908,937 534,357 (48,486) 66,953 2,364,824
Net assets available for benefits
at beginning of year 3,914,150 3,110,387 724,518 1,613,414 33,706,029
------------------------------------------------------------------------------
Net assets available for benefits
at end of year $5,823,087 $3,644,744 $676,032 $1,680,367 $36,070,853
==============================================================================
</TABLE>
16
<PAGE>
Whittaker Corporation Partnership Plan
Notes to Financial Statements (continued)
5. INCOME TAX STATUS
The Internal Revenue Service has issued a determination letter dated June 12,
1995, that the Plan qualifies, in form, under Sections 401(a) and 401(k) of the
Internal Revenue Code of 1986, as amended (the Code) and the underlying trust
is, therefore, exempt from federal income taxes under Section 501(a) of the
Code. The Plan is required to operate in accordance with the Code to maintain
its tax qualification. The Administrative Committee is not aware of any course
of actions or series of events that have occurred which might adversely affect
the Plan's qualified status.
17
<PAGE>
WHITTAKER CORPORATION PARTNERSHIP PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1996
<TABLE>
<CAPTION>
SHARES/FACE CURRENT
IDENTITY OF ISSUE AMOUNT COST VALUE
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
The Charles Schwab Family of Funds*
Schwab Retirement Money Fund $ 574,793 $ 574,793 $ 574,793
The Charles Schwab Family Funds*
Schwab Institutional Advantage Money
Fund 821,167 821,167 821,167
Whittaker Corporation* Common Stock 318,274 3,617,265 4,018,209
Fidelity Intermediate Bond Fund 168,499 1,683,408 1,698,474
T. Rowe Price Balanced Fund, Inc. 417,698 5,085,199 6,048,269
Twentieth Century Investors Inc.,
Growth Investors 235,096 4,901,464 5,143,910
Templeton Foreign Fund series of
Templeton Funds, Inc. 384,344 3,564,832 3,981,805
Scudder Growth and Income Fund 55,643 1,295,157 1,292,580
BioWhittaker, Inc.* Common Stock 80,140 287,374 641,120
Participant Loans* 2,038,696 2,038,696 2,038,696
Dreyfus-Certus Stable Value Fund 4,947,741 4,947,741 4,947,741
Aetna Life Insurance Company, Group
Annuity Contract, 5.22%, 50% matures
February 17, 1997, remainder matures
September 15, 1997 $1,781,565 1,781,565 1,781,565
</TABLE>
*Indicates a party-in-interest to the Plan.
18
<PAGE>
WHITTAKER CORPORATION PARTNERSHIP PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES (CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
SHARES/FACE CURRENT
IDENTITY OF ISSUE AMOUNT COST VALUE
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
Allstate Life Insurance Company, Group
Annuity Contract, 7.39%, matures
October 15, 1998 $1,039,840 $1,039,840 $ 1,039,840
Aurora National Life Assurance Company,
Group Annuity Contract, 5.61%, matures
September 3, 1998 $ 475,369 475,369 475,369
-----------
Total assets held for investment
purposes $34,503,538
===========
</TABLE>
19
<PAGE>
WHITTAKER CORPORATION PARTNERSHIP PLAN
SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
IDENTITY OF PARTY INVOLVED DESCRIPTION OF ASSET PURCHASE PRICE
- -----------------------------------------------------------------------------------
Category (i) - A single transaction in excess of 5% of Plan assets.
<S> <C> <C>
The Charles Schwab Family of Funds* Schwab Retirement Money Fund $ --
The Charles Schwab Family of Funds* Schwab Institutional
Advantage Money Fund 2,351,687
The Charles Schwab Family of Funds* Schwab Institutional
Advantage Money Fund --
The Charles Schwab Family of Funds* Schwab Institutional
Advantage Money Fund 2,600,514
The Charles Schwab Family of Funds* Schwab Institutional
Advantage Money Fund --
The Dreyfus Trust Company Dreyfus-Certus Stable Value
Fund 2,400,000
The Dreyfus Trust Company Dreyfus-Certus Stable Value
Fund 2,000,000
Franklin Templeton Franklin Stable Value Fund --
</TABLE>
*Indicates a party-in-interest to the Plan.
20
<PAGE>
<TABLE>
<CAPTION>
CURRENT
VALUE OF
ASSET ON
SELLING COST OF TRANSACTION NET GAIN
IDENTITY OF PARTY INVOLVED PRICE ASSET DATE (LOSS)
- ---------------------------------------------------------------------------------------------------
Category (i) - A single transaction in excess of 5% of Plan assets.
<S> <C> <C> <C> <C>
The Charles Schwab Family of Funds* $2,365,510 $2,365,510 $2,365,510 $ --
The Charles Schwab Family of Funds* -- 2,351,687 2,351,687 --
The Charles Schwab Family of Funds* 2,400,000 2,400,000 2,400,000 --
The Charles Schwab Family of Funds* -- 2,600,514 2,600,514 --
The Charles Schwab Family of Funds* 2,000,000 2,000,000 2,000,000 --
The Dreyfus Trust Company -- 2,400,000 2,400,000 --
The Dreyfus Trust Company -- 2,000,000 2,000,000 --
Franklin Templeton 2,600,514 2,600,514 2,600,514 --
</TABLE>
21
<PAGE>
WHITTAKER CORPORATION PARTNERSHIP PLAN
SCHEDULE OF REPORTABLE TRANSACTIONS (CONTINUED)
YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
NUMBER OF VALUE OF
PURCHASES PURCHASES
DESCRIPTION OF ASSETS (SALES) (SALES) NET GAIN (LOSS)
- ------------------------------------------------------------------------------------------------------
Category (iii) - Series of securities transactions in excess of 5% of Plan assets.
<S> <C> <C> <C>
The Charles Schwab Family of Funds*
Schwab Retirement Money Fund 162 $ 3,378,467 $ --
(41) (4,361,665) --
The Charles Schwab Family of Funds*
Schwab Institutional Advantage Money Fund 163 7,882,908 --
(43) (7,061,741) --
Whittaker Corporation*
Whittaker Corporation Common Stock 76 1,345,009 --
(44) (641,995) 238,559
The Dreyfus Trust Company
Dreyfus-Certus Stable Value Fund 6 4,947,741 --
Franklin Templeton
Franklin Stable Value Fund 10 115,646 --
(1) (2,600,514) --
Twentieth Century Investors Inc.,
Growth Investors 197 1,553,915 --
(58) (2,321,565) 95,996
T. Rowe Price
Balanced Fund, Inc. 202 1,755,275 --
(53) (1,029,121) 141,384
Templeton Foreign Fund series of Templeton
Funds, Inc. 192 1,229,269 --
(45) (1,183,102) 81,280
</TABLE>
There were no category (ii) or (iv) reportable transactions during the year
ended December 31, 1996.
*Indicates a party-in-interest to the Plan.
22
<PAGE>
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.
Whittaker Corporation Partnership Plan
Date: June 27, 1997 By: /s/ Charles E. Barrantes
----------------------------------
Charles E. Barrantes
Vice President and
Chief Financial Officer
<PAGE>
EXHIBIT INDEX
-------------
<TABLE>
<CAPTION>
Sequentially
Exhibit No. Description Numbered Page
- ----------- ----------- -------------
<C> <S>
23.1 Independent Auditor's Consent
</TABLE>
<PAGE>
Exhibit 23.1
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in Post-Effective Amendment Number
1-B to Registration Statement Number 33-04320 on Form S-4 dated March 26, 1986,
as supplemented and amended to date, Post-Effective Amendment Number 2-B to
Registration Statement Number 33-04320 on Form S-8 to Form S-4 dated June 1,
1987, and Registration Statement Number 33-35763 on Form S-8 dated July 6, 1990,
of our report dated June 20, 1997, with respect to the financial statements and
schedules of the Whittaker Corporation Partnership Plan included in this Annual
Report (Form 11-K) for the year ended December 31, 1996.
Ernst & Young LLP
Los Angeles, California
June 27, 1997
