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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES 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 June 30, 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 1-15139
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
Lanier Worldwide, Inc. Save To Accumulate Retirement $(STAR$) Plan
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
Lanier Worldwide, Inc.
2300 Parklake Drive, N.E.
Atlanta, Georgia 30345
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LANIER WORLDWIDE, INC.
SAVE TO ACCUMULATE RETIREMENT $ (STAR$) PLAN
Financial Statements
Years Ended June 30, 2000 and 1999
<TABLE>
<S> <C>
INDEPENDENT AUDITORS' REPORT 2
FINANCIAL STATEMENTS
Statements of net assets available for benefits 3
Statements of changes in net assets available for benefits 4
Notes to financial statements 5-9
SUPPLEMENTAL SCHEDULE
Schedule of assets held for investment purposes at end of year 10
</TABLE>
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INDEPENDENT AUDITORS' REPORT
Lanier Worldwide, Inc.
Save to Accumulate Retirement $ Plan
Atlanta, Georgia
We have audited the accompanying statement of net assets available for benefits
of the Lanier Worldwide, Inc. Save to Accumulate Retirement $ Plan (the "Plan",
formerly the Lanier Worldwide, Inc. Savings Incentive Plan) as of June 30, 2000,
and the related statement of changes in net assets available for benefits for
the year 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 audit. The financial statements of The Lanier
Worldwide, Inc. Savings Incentive Plan as of and for the year ended June 30,
1999 were reported on by other auditors whose report dated August 31, 1999
expressed an unqualified opinion on those statements.
We conducted our audit 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 audit provides 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
June 30, 2000, and the changes in net assets available for benefits for the year
ended June 30, 2000, in conformity with generally accepted accounting
principles.
Our audit was performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule of assets held
for investment purposes at end of year 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 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.
Atlanta, Georgia
December 12, 2000
2
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LANIER WORLDWIDE, INC.
SAVE TO ACCUMULATE RETIREMENT $ PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
June 30, 2000 1999
=================================================================================================================
<S> <C> <C>
ASSETS
INVESTMENTS, at fair market value (Notes 2 and 3)
Mutual funds $168,536,429 $161,899,383
Lanier Worldwide, Inc. common stock - restricted 1,012,442 --
Lanier Worldwide, Inc. common stock - unrestricted 146,636 --
Harris Corporation common stock - restricted 2,932,068 4,401,306
Harris Corporation common stock - unrestricted -- 179,966
Participant loans 6,349,850 6,573,298
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Total investments 178,977,425 173,053,953
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RECEIVABLES
Participant contributions -- 275,689
Employer contributions -- 103,574
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Total receivables -- 379,263
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TOTAL ASSETS AND NET ASSETS AVAILABLE FOR BENEFITS $178,977,425 $173,433,216
=================================================================================================================
</TABLE>
See accompanying independent auditors' report and notes to financial statements.
3
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LANIER WORLDWIDE, INC.
SAVE TO ACCUMULATE RETIREMENT $ PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
Year ended June 30, 2000 1999
=====================================================================================================================
<S> <C> <C>
ADDITIONS
Participant contributions $ 12,652,715 $ 13,451,523
Rollover contributions 531,950 --
Employer contributions 3,672,143 4,890,768
Net (depreciation) appreciation in fair market value:
Mutual funds (688,329) 15,617,554
Lanier Worldwide, Inc. common stock 1,420,784 --
Harris Corporation common stock (88,245) (236,467)
Investment income:
Mutual funds 6,367,837 5,487,626
Lanier Worldwide, Inc. common stock 61,121 --
Harris Corporation common stock 296,633 92,712
Participant loans 524,331 535,313
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Total additions 24,750,940 39,839,029
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DEDUCTIONS
Benefits paid directly to participants 24,027,569 16,072,938
Administrative expenses 14,194 6,993
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Total deductions 24,041,763 16,079,931
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NET INCREASE 709,177 23,759,098
TRANSFERS FROM OTHER QUALIFIED PLANS (Note 1) 4,835,032 --
NET ASSETS AVAILABLE FOR PLAN BENEFITS, beginning of year 173,433,216 149,674,118
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NET ASSETS AVAILABLE FOR PLAN BENEFITS, end of year $ 178,977,425 $ 173,433,216
=====================================================================================================================
</TABLE>
See accompanying independent auditors' report and notes to financial statements.
4
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LANIER WORLDWIDE, INC.
SAVE TO ACCUMULATE RETIREMENT $ PLAN
NOTES TO FINANCIAL STATEMENTS
1. DESCRIPTION The following description of the Lanier Worldwide,
OF PLAN Inc. Save to Accumulate OF PLAN Retirement $ Plan
("Plan," formerly the Lanier Worldwide, Inc. Savings
Incentive Plan) provides only general information.
Participants should refer to the Plan agreement or
Summary Plan Description for a more complete
description of the Plan's provisions.
a. General - The Plan is a defined contribution
plan covering substantially all full-time
employees of Lanier Worldwide, Inc. (the
"Company") who are age twenty-one or older.
It is subject to the provisions of the
Employee Retirement Income Security Act of
1974 (ERISA).
On November 5, 1999 Harris Corporation
distributed one share of Lanier Worldwide,
Inc. common stock for each share of Harris
Corporation common stock owned to
shareholders of record on November 1, 1999
as a result of the spin off of Lanier
Worldwide, Inc. from Harris Corporation.
Some employees of Harris Corporation
transferred into this plan during the year
ended June 30, 2000.
b. Contributions - Each year, participants may
contribute up to 15 percent of pretax annual
compensation, as defined in the Plan.
Participants may also contribute amounts
representing distributions from other
qualified defined benefit or defined
contribution plans. Participants direct the
investment of their contributions into
various investment options offered by the
Plan. The Plan currently offers Lanier
Worldwide, Inc. common stock and nine mutual
funds as investment options for
participants.
Effective with the spin off, the Harris
Corporations common stock investment option
is no longer available. Shares of the Harris
Corporation common stock held in the
participant's accounts can be retained or
sold, with the proceeds used to purchase
Lanier Worldwide, Inc. common stock or any
of the mutual fund investment options.
The Company contributes 50 percent of the
first 6 percent of base compensation that a
participant contributes to the Plan.
Additional profit-sharing amounts may be
contributed at the option of the Company's
board of directors in the form of Lanier
Worldwide, Inc. common stock. Contributions
are subject to certain limitations.
5
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LANIER WORLDWIDE, INC.
SAVE TO ACCUMULATE RETIREMENT $ PLAN
NOTES TO FINANCIAL STATEMENTS
Participant contributions into Lanier
Worldwide, Inc. common stock are limited to
1 percent of compensation. Shares of Lanier
Worldwide, Inc. common stock are purchased
or contributed by the Company at a discount
established from time-to-time by the
Company. Accounts contributed to Lanier
Worldwide, Inc. common stock must remain in
Lanier Worldwide, Inc. common stock for a
minimum of 12 months.
c. Participant Accounts - Each participant's
account is credited with the participant's
contribution, the Company's contributions,
Plan earnings, and charged with an
allocation of administrative expenses.
Allocations are based on participant
earnings or account balances, as defined.
The benefit to which a participant is
entitled is the benefit that can be provided
from the participant's vested account.
d. Vesting - Participants are immediately
vested in their contributions plus actual
earnings thereon. Vesting in the Company's
contribution portion of their accounts is
based on years of credited service. A
participant is 100 percent vested after five
years of credited service.
e. Participant Loans - Participants may borrow
from their fund accounts a minimum of $500
up to a maximum equal to the lesser of
$50,000 or 50 percent of their account
balance. The loans are secured by the
balance in the participant's account and
bear interest at a rate commensurate with
local prevailing rates. Interest rates range
from 6.50 to 9.50 percent. Principal and
interest are paid ratably through payroll
deductions.
f. Payment of Benefits - On termination of
service due to death, disability, retirement
or separation from service, a participant
may elect to receive either a lump-sum
amount equal to the value of the
participant's vested interest in his or her
account, or in the form of installments.
g. Forfeitures - Forfeited nonvested accounts
are used to reduce future Company
contributions. As of June 30, 2000 and 1999
forfeited nonvested accounts totalled
$599,047 and $359,533, respectively.
h. Administrative Expenses - The majority of
the administrative
6
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LANIER WORLDWIDE, INC.
SAVE TO ACCUMULATE RETIREMENT $ PLAN
NOTES TO FINANCIAL STATEMENTS
expenses of the Plan are paid by the
Company.
7
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LANIER WORLDWIDE, INC.
SAVE TO ACCUMULATE RETIREMENT $ PLAN
NOTES TO FINANCIAL STATEMENTS
2. SUMMARY OF BASIS OF ACCOUNTING
SIGNIFICANT
ACCOUNTING The financial statements of the Plan are prepared
POLICIES under the accrual method of accounting.
MANAGEMENT ESTIMATES
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 changes therein, and disclosure of
contingent assets and liabilities. Actual results
could differ from those estimates.
INVESTMENT VALUATION AND INCOME RECOGNITION
The Plan's investments are stated at fair market
value. Shares of mutual funds are valued at quoted
market prices, which represent the net asset value of
shares held by the Plan at year-end. Lanier
Worldwide, Inc. common stock and Harris Corporation
common stock is valued at its quoted market price.
Participant loans are valued at cost which
approximates fair market 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.
NEW ACCOUNTING PROVISION
In September 1999, the American Institute of
Certified Public Accountants issued Statement of
Position ("SOP") No. 99-3, Accounting for and
Reporting of Certain Defined Contribution Plan
Investments and Other Disclosure Matters. This
statement established standards for simplified
disclosures for certain investments. The Plan adopted
the provisions of this statement for the Plan year
ended June 30, 2000. As a result, disclosures made in
the prior year for the separate fund information have
been eliminated in these financial statements, to be
consistent with the current year presentation.
8
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LANIER WORLDWIDE, INC.
SAVE TO ACCUMULATE RETIREMENT $ PLAN
NOTES TO FINANCIAL STATEMENTS
3. INVESTMENTS The fair market value of individual investments that
represent 5 percent or more of the Plan's net assets
are as follows:
<TABLE>
<CAPTION>
June 30, 2000 1999
=============================================================================
<S> <C> <C>
T. Rowe Price Summit Cash Reserves $18,582,150 $20,125,212
T. Rowe Price Equity Index 500 Fund 72,577,948 81,713,385
T. Rowe Price New America Growth Fund 27,125,725 36,836,658
T. Rowe Price Balanced Fund 13,373,661 14,787,907
T. Rowe Price Science & Technology
Fund 21,711,116 --
=============================================================================
</TABLE>
4. RELATED PARTY Certain Plan investments are shares of mutual funds
TRANSACTIONS managed by T. Rowe Price Trust Company. T. Rowe Price
Trust Company is the trustee as defined by the Plan
and, therefore, these transactions qualify as
party-in-interest. Fees paid by the Plan for the
investment management services amounted to $14,194
and $6,993 for the years ended June 30, 2000 and
1999, respectively.
At June 30, 2000 and 1999 the Plan held 89,529 and
116,906 shares of Harris Corporation common stock and
927,262 and 0 shares of Lanier Worldwide Inc. common
stock, respectively.
5. PLAN TERMINATION Although it has not expressed any intent to do so,
the Company has the right under the Plan 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 100 percent vested in their accounts.
6. TAX STATUS The Internal Revenue Service has determined and
informed the Company by a letter dated April 30,
1999, that the Plan and related trust are designed in
accordance with applicable sections of the Internal
Revenue Code (IRC). The Plan has been amended since
receiving the determination letter. However, the Plan
administrator and the Plan's tax counsel believe that
the Plan is designed and is currently being operated
in compliance with the applicable requirements of the
IRC.
9
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SUPPLEMENTAL SCHEDULE
10
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LANIER WORLDWIDE, INC.
SAVE TO ACCUMULATE RETIREMENT $ PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR
JUNE 30, 2000
<TABLE>
<CAPTION>
(b) (e)
Identity of (c) (d) Current
(a) Issuer Description of Investment Cost Value
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
* T. Rowe Price Trust Company T. Rowe Price Summit Cash Reserves a $18,582,150
* T. Rowe Price Trust Company T. Rowe Price Short-Term Bond Fund a 2,554,109
* T. Rowe Price Trust Company T. Rowe Price New America Growth Fund a 27,125,725
* T. Rowe Price Trust Company T. Rowe Price Mid Cap Growth Fund a 2,627,265
* T. Rowe Price Trust Company T. Rowe Price International Stock Fund a 6,381,259
* T. Rowe Price Trust Company T. Rowe Price Equity Index 500 Fund a 72,577,948
* T. Rowe Price Trust Company T. Rowe Price Balanced Fund a 13,373,661
* T. Rowe Price Trust Company T. Rowe Price Science & Technology Fund a 21,711,116
* T. Rowe Price Trust Company T. Rowe Price Settlement a 7,659
* T. Rowe Price Trust Company T. Rowe Price Blue Chip Growth Fund a 3,595,537
* Lanier Worldwide, Inc. Lanier Worldwide, Inc. common stock -
restricted a 1,012,442
* Lanier Worldwide, Inc. Lanier Worldwide, Inc. common stock -
unrestricted a 146,636
* Harris Corporation Harris Corporation common stock -
restricted a 2,932,068
* Participant loans 1,275 loans with interest rates ranging
between 6.50 to 9.50 percent -- 6,349,850
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$178,977,425
=========================================================================================================================
</TABLE>
See accompanying independent auditors' report and notes to financial statements.
*Party-in-interest
a-The cost of participant-directed investments is not required to be disclosed.
11
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SIGNATURES
The Plan. 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 their behalf by the undersigned
hereunto duly authorized.
LANIER WORLDWIDE, INC.
SAVE TO ACCUMULATE RETIREMENT $ (STAR$) PLAN
By: Lanier Worldwide, Inc.
---------------------------------------------
Plan Administrator
By: /s/ J. Michael Kelly
---------------------------------------------
J. Michael Kelly
Vice President, General Counsel and Secretary
December 21, 2000
