<PAGE> 1
================================================================================
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
(NO FEE REQUIRED)
For the fiscal year ended September 30, 1998.
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
(NO FEE REQUIRED)
For the period from _____________ to _______________
Commission file number 0-9514
A. Full title of the plan and the address of the plan, if different from that of
issuer named below:
ANDREW PROFIT SHARING PLAN
B. Name of issuer of the securities held pursuant to the plan and the address of
its executive office:
ANDREW CORPORATION
10500 W. 153RD STREET, ORLAND PARK, ILLINOIS 60462
(Address of principal executive offices and zip code)
(708) 349-3300
(Registrant's telephone number, including area code)
================================================================================
<PAGE> 2
Financial Statements
and Supplemental Schedules
Andrew Profit Sharing Plan
Years ended September 30, 1998 and 1997
with Report of Independent Auditors
Employer Identification #36-2092797
Plan #001
<PAGE> 3
Andrew Profit Sharing Plan
Financial Statements
and Supplemental Schedules
Years ended September 30, 1998 and 1997
CONTENTS
Report of Independent Auditors............................................. 1
Financial Statements
Statements of Net Assets Available for Benefits,
With Fund Information................................. .................. 2
Statements of Changes in Net Assets Available for Benefits,
With Fund Information.................................................... 4
Notes to Financial Statements.............................................. 6
Supplemental Schedules
Line 27a - Schedule of Assets Held for Investment Purposes................ 13
Line 27d - Schedule of Reportable Transactions............................ 14
<PAGE> 4
Report of Independent Auditors
Trustees
Andrew Profit Sharing Plan
We have audited the accompanying statements of net assets available for benefits
of Andrew Profit Sharing Plan as of September 30, 1998 and 1997, 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 at
September 30, 1998 and 1997, 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 made 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 September 30, 1998, 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 Fund Information in the
statements of net assets available for benefits and the statements of changes in
net assets available for benefits is presented for purposes of additional
analysis rather than to present the net assets available for benefits and
changes in net assets available for benefits of each fund. The supplemental
schedules and Fund Information have been subjected to the auditing procedures
applied in our audits of the financial statements and, in our opinion, are
fairly stated in all material respects in relation to the financial statements
taken as a whole.
Chicago, IL
February 24, 1999
1
<PAGE> 5
EIN 36-2092797
Plan #001
Andrew Profit Sharing Plan
Statement of Net Assets Available for
Benefits, With Fund Information
September 30, 1998
<TABLE>
<CAPTION>
FUND INFORMATION
---------------------------------------------------------------------------------------------
BENHAM PIMCO PIMCO ACI ACI ACI
STABLE TOTAL MID-CAP EQUITY INCOME & INTERNATIONAL
ASSET RETURN GROWTH INCOME GROWTH GROWTH
FUND FUND FUND FUND FUND FUND
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Receivables:
Andrew Corporation and
subsidiaries contributions $ 1,162,228 $ 281,861 $ 748,671 $ 665,738 $ 1,566,073 $ 429,392
Accrued income 157,310 - - - - -
Investments, at fair value:
Andrew Corporation common stock
- - - - - -
Mutual funds - 8,528,300 9,165,854 9,651,235 22,128,262 5,176,720
Money market funds 26,924,384 - - - - -
Loans to participants - - - - - -
---------------------------------------------------------------------------------------------
26,924,384 8,528,300 9,165,854 9,651,235 22,128,262 5,176,720
---------------------------------------------------------------------------------------------
Total assets 28,243,922 8,810,161 9,914,525 10,316,973 23,694,335 5,606,112
LIABILITIES
Refunds to participants 1,319,366 - - - - -
---------------------------------------------------------------------------------------------
Total liabilities 1,319,366 - - - - -
---------------------------------------------------------------------------------------------
Net assets available for benefits $26,924,556 $8,810,161 $ 9,914,525 $10,316,973 $ 23,694,335 $ 5,606,112
=============================================================================================
FUND INFORMATION
---------------------------------------------------------------------------------------------
ANDREW CORPORATION
BARCLAYS STOCK FUND FIDELITY
------------------------------
EQUITY J.P. MORGAN J.P. MORGAN NON- EQUITY
INDEX US SMALL CO. DIVERSIFIED PARTICIPANT PARTICIPANT INCOME
FUND FUND FUND DIRECTED DIRECTED FUND
---------------------------------------------------------------------------------------------
ASSETS
Receivables:
Andrew Corporation and
subsidiaries contributions $ 818,922 $ 498,409 $ 571,552 $ 5,815,986 $ 374,705 $ 334,820
Accrued income - - - - - -
Investments, at fair value:
Andrew Corporation common stock
- - - 31,230,087 11,219,926 -
Mutual funds 11,028,770 4,337,103 8,109,635 - - 10,123,462
Money market funds - - - - - -
Loans to participants - - - - -
---------------------------------------------------------------------------------------------
11,028,770 4,337,103 8,109,635 31,230,087 11,219,926 10,123,462
---------------------------------------------------------------------------------------------
Total assets 11,847,692 4,835,512 8,681,187 37,046,073 11,594,631 10,458,282
LIABILITIES
Refunds to participants - - - - - -
---------------------------------------------------------------------------------------------
Total liabilities - - - - - -
---------------------------------------------------------------------------------------------
Net assets available for benefits $11,847,692 $4,835,512 $8,681,187 $37,046,073 $ 11,594,631 $10,458,282
=============================================================================================
FUND INFORMATION
-------------------------------------------------------------
FIDELITY FIDELITY
PURITAN MAGELLAN LOAN
FUND FUND FUND TOTAL
-------------------------------------------------------------
ASSETS
Receivables:
Andrew Corporation and
subsidiaries contributions $ 175,347 $ 520,153 $ - $ 13,963,857
-
Accrued income - - - 157,310
Investments, at fair value:
Andrew Corporation common stock
- - - 42,450,013
Mutual funds 8,302,167 13,616,685 - 110,168,193
Money market funds - - - 26,924,384
Loans to participants - - 11,778,856 11,778,856
-------------------------------------------------------------
8,302,167 13,616,685 11,778,856 191,321,446
-------------------------------------------------------------
Total assets 8,477,514 14,136,838 11,778,856 205,442,613
LIABILITIES
Refunds to participants - - - 1,319,366
-------------------------------------------------------------
Total liabilities - - - -
-------------------------------------------------------------
Net assets available for benefits $8,477,514 $14,136,838 $11,778,856 $204,123,247
=============================================================
</TABLE>
See notes to financial statements.
2
<PAGE> 6
EIN 36-2092797
Plan #001
Andrew Profit Sharing Plan
Statement of Net Assets Available for Benefits, With Fund Information
September 30, 1997
<TABLE>
<CAPTION>
FUND INFORMATION
-----------------------------------------------------------------------------------------
FIDELITY FIDELITY
COLLECTIVE EQUITY FIDELITY FIDELITY INTERMEDIATE
TRUST INCOME PURITAN MAGELLAN BOND
FUND FUND FUND FUND FUND
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Cash $ 107,521 $ - $ - $ - $ -
Receivables:
Andrew Corporation and
subsidiaries contributions 10,698,797 - - - -
Participant contributions 890,470 - - - -
Accrued interest and dividends 327,969 - - - -
----------------------------------------------------------------------------------------
11,917,236 - - - -
Investments, at fair value:
Andrew Corporation common stock 129,425,539 - - - -
Common trust funds 66,774,356 - - - -
Mutual funds - 10,076,837 6,715,652 11,493,567 2,488,307
Money market funds 1,065,097 - - - -
Loans to participants 414,341 - - - -
-----------------------------------------------------------------------------------------
197,679,333 10,076,837 6,715,652 11,493,567 2,488,307
-----------------------------------------------------------------------------------------
Total assets 209,704,090 10,076,837 6,715,652 11,493,567 2,488,307
LIABILITIES
Refunds to participants 369,117 - - - -
Accounts payable 125,156 - - - -
Forfeitures held 285,854 - - - -
-----------------------------------------------------------------------------------------
Total liabilities 780,127 - - - -
-----------------------------------------------------------------------------------------
Net assets available for benefits $ 208,923,963 $10,076,837 $6,715,652 $11,493,567 $2,488,307
=========================================================================================
FUND INFORMATION
-----------------------------------------------------------------------------------------
FIDELITY
FIDELITY FIDELITY RETIREMENT FIDELITY
RETIREMENT ASSET GOVERNMENT MANAGED
GROWTH MANAGER MONEY MARKET INCOME LOAN
FUND FUND FUND FUND FUND TOTAL
-----------------------------------------------------------------------------------------
ASSETS
Cash $ - $ - $ - $ - $ - $ 107,521
Receivables:
Andrew Corporation and
subsidiaries contributions - - - - - 10,698,797
Participant contributions - - - - - 890,470
Accrued interest and dividends - - - - - 327,969
-----------------------------------------------------------------------------------------
- - - - - 11,917,236
Investments, at fair value:
Andrew Corporation common stock
- - - - - 129,425,539
Common trust funds - - - - - 66,774,356
Mutual funds 4,389,937 2,249,041 - 2,939,423 - 40,352,764
Money market funds - - 4,719,046 - - 5,784,143
Loans to participants - - - - 12,068,273 12,482,614
-------------------------------------------------------------------------------------------
4,389,937 2,249,041 4,719,046 2,939,423 12,068,273 254,819,416
-------------------------------------------------------------------------------------------
Total assets 4,389,937 2,249,041 4,719,046 2,939,423 12,068,273 266,844,173
LIABILITIES
Refunds to participants - - - - - 369,117
Accounts payable - - - - - 125,156
Forfeitures held - - - - - 285,854
------------------------------------------------------------------------------------------
Total liabilities - - - - - 780,127
-----------------------------------------------------------------------------------------
Net assets available for benefits $4,389,937 $2,249,041 $4,719,046 $2,939,423 $12,068,273 $266,064,046
==========================================================================================
</TABLE>
3
<PAGE> 7
<TABLE>
<CAPTION>
FUND INFORMATION
- --------------------------------------------------------------------------------------------------------------------------
ANDREW CORPORATION
BARCLAYS STOCK FUND FIDELITY
------------------------------------
EQUITY J.P. MORGAN J.P. MORGAN NON- EQUITY FIDELITY
INDEX US SMALL CO. DIVERSIFIED PARTICIPANT PARTICIPANT INCOME PURITAN
FUND FUND FUND DIRECTED DIRECTED FUND FUND
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 818,922 $ 498,409 $ 571,552 $ 5,815,986 $ 374,705 $ 334,820 $ 175,347
183,438 116,964 126,437 - 73,704 66,800 36,443
- --------------------------------------------------------------------------------------------------------------------------
1,002,360 615,373 697,989 5,815,986 448,409 401,620 211,790
- 8,299 34,034 - - 734,759 1,051,797
- - - - - - -
(1,382,699) (1,291,198) (648,072) (11,493,158) (3,891,312) 33,352 (251,703)
- --------------------------------------------------------------------------------------------------------------------------
(1,382,699) (1,282,899) (614,038) (11,493,158) (3,891,312) 768,111 800,094
- --------------------------------------------------------------------------------------------------------------------------
(380,339) (667,526) 83,951 (5,677,172) (3,442,903) 1,169,731 1,011,884
(90,653) (10,845) (46,061) (729,213) (120,878) (732,660) (735,013)
(583) (574) (844) - (50) (4,619) (3,047)
- --------------------------------------------------------------------------------------------------------------------------
(91,236) (11,419) (46,905) (729,213) (120,928) (737,279) (738,060)
12,319,267 5,514,457 8,644,141 43,452,458 15,158,462 (51,007) 1,488,038
- --------------------------------------------------------------------------------------------------------------------------
11,847,692 4,835,512 8,681,187 37,046,073 11,594,631 381,445 1,761,862
- - - - - 10,076,837 6,715,652
- --------------------------------------------------------------------------------------------------------------------------
$ 11,847,692 $ 4,835,512 $ 8,681,187 $ 37,046,073 $ 11,594,631 $ 10,458,282 $ 8,477,514
==========================================================================================================================
FUND INFORMATION
- -------------------------------------------------------------------------------------------------------
FIDELITY
FIDELITY FIDELITY FIDELITY RETIREMENT FIDELITY
FIDELITY INTERMEDIATE RETIREMENT ASSET GOVERNMENT MANAGED
MAGELLAN BOND GROWTH MANAGER MONEY MARKET INCOME
FUND FUND FUND FUND FUND FUND
- -------------------------------------------------------------------------------------------------------
$ 520,153 $ - $ - $ - $ - $ -
117,686 - - - - -
- -------------------------------------------------------------------------------------------------------
637,839 - - - - -
922,242 156,823 710,159 194,486 228,447 139,846
- - - - - -
14,484 13,210 771,244 163,735 - -
- -------------------------------------------------------------------------------------------------------
936,726 170,033 1,481,403 358,221 228,447 139,846
- -------------------------------------------------------------------------------------------------------
1,574,565 170,033 1,481,403 358,221 228,447 139,846
(746,573) (457,994) (301,001) (345,855) (2,646,546) (327,472)
(7,272) - - - - -
- -------------------------------------------------------------------------------------------------------
(753,845) (457,994) (301,001) (345,855) (2,646,546) (327,472)
1,822,551 (2,200,346) (5,570,339) (2,261,407) (2,300,947) (2,751,797)
- -------------------------------------------------------------------------------------------------------
2,643,271 (2,488,307) (4,389,937) (2,249,041) (4,719,046) (2,939,423)
11,493,567 2,488,307 4,389,937 2,249,041 4,719,046 2,939,423
- -------------------------------------------------------------------------------------------------------
$14,136,838 $ - $ - $ - $ - $ -
=======================================================================================================
FUND INFORMATION
- ---------------------------------------------------
COLLECTIVE
TRUST LOAN
FUND FUND TOTAL
- ---------------------------------------------------
$ - $ - $ 13,963,857
-
5,030,313 - 5,402,897
- ---------------------------------------------------
5,030,313 - 19,366,754
2,727,749 - 7,858,194
35,058 923,530 958,588
(40,006,634) - (63,858,435)
- ---------------------------------------------------
(37,243,827) 923,530 (55,041,653)
- ---------------------------------------------------
(32,213,514) 923,530 (35,674,899)
(16,431,473) (378,141) (26,209,429)
(35,101) - (56,471)
- ---------------------------------------------------
(16,466,574) (378,141) (26,265,900)
(160,243,875) (834,806) -
- ---------------------------------------------------
(208,923,963) (289,417) (61,940,799)
208,923,963 12,068,273 266,064,046
- ---------------------------------------------------
$ - $ 11,778,856 $ 204,123,247
===================================================
</TABLE>
<PAGE> 8
EIN 36-2092797
Plan #001
Andrew Profit Sharing Plan
Statement of Changes in Net Assets
Available for Benefits, With Fund Information
Year ended September 30, 1998
<TABLE>
<CAPTION>
FUND INFORMATION
-----------------------------------------------------------------------------------------------
BENHAM PIMCO PIMCO ACI ACI ACI
STABLE TOTAL MID-CAP EQUITY INCOME & INTERNATIONAL
ASSET RETURN GROWTH INCOME GROWTH GROWTH
FUND FUND FUND FUND FUND FUND
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions
Contributions:
Andrew Corporation and
subsidiaries $ 1,162,228 $ 281,861 $ 748,671 $ 665,738 $ 1,566,073 $ 429,392
Participants (1,149,292) 55,356 167,127 142,330 340,336 95,255
-----------------------------------------------------------------------------------------------
12,936 337,217 915,798 808,068 1,906,409 524,647
Investment income:
Dividend and interest income 598,032 151,193 - 87,953 112,375 -
Interest from loans to
participants - - - - - -
Net realized and unrealized
(depreciation) appreciation in
fair value of investments - 268,642 (1,736,157) (847,627) (2,494,966) (1,079,576)
-----------------------------------------------------------------------------------------------
598,032 419,835 (1,736,157) (759,674) (2,382,591) (1,079,576)
-----------------------------------------------------------------------------------------------
610,968 757,052 (820,359) 48,394 (476,182) (554,929)
Deductions
Benefits paid to terminated
and retired participants (1,947,383) (24,067) (17,005) (55,513) (50,529) (14,554)
Administrative expense (1,389) (233) (658) (606) (1,052) (443)
-----------------------------------------------------------------------------------------------
(1,948,772) (24,300) (17,663) (56,119) (51,581) (14,997)
Net interfund transfers 28,262,360 8,077,409 10,752,547 10,324,698 24,222,098 6,176,038
-----------------------------------------------------------------------------------------------
Net increase (decrease) 26,924,556 8,810,161 9,914,525 10,316,973 23,694,335 5,606,112
Net assets available for benefits
at beginning of year - - - - - -
-----------------------------------------------------------------------------------------------
Net assets available for benefits
at end of year $ 26,924,556 $ 8,810,161 $ 9,914,525 $ 10,316,973 $ 23,694,335 $ 5,606,112
===============================================================================================
</TABLE>
4
<PAGE> 9
EIN 36-2092797
Plan #001
Andrew Profit Sharing Plan
Statement of Changes in Net Assets
Available for Benefits, With Fund Information
Year ended September 30, 1997
<TABLE>
<CAPTION>
FUND INFORMATION
------------------------------------------------------------------------------------------
FIDELITY FIDELITY
COLLECTIVE EQUITY FIDELITY FIDELITY INTERMEDIATE
TRUST INCOME PURITAN MAGELLAN BOND
FUND FUND FUND FUND FUND
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions-
Contributions:
Andrew Corporation and
subsidiaries contributions $ 10,895,272 $ - $ - $ - $ -
Participant 7,605,987 - - - -
------------------------------------------------------------------------------------------
18,501,259 - - - -
Investment income:
Interest and dividend income 2,595,238 454,804 403,873 334,500 147,261
Interest from loans to 44,769 - - - -
participants
Miscellaneous income 6,515 - - - -
Net realized and unrealized
(depreciation) appreciation in
fair value of investments (27,277,545) 2,251,581 1,028,481 2,931,613 28,831
------------------------------------------------------------------------------------------
(24,631,023) 2,706,385 1,432,354 3,266,113 176,092
------------------------------------------------------------------------------------------
Total additions (6,129,764) 2,706,385 1,432,354 3,266,113 176,092
Deductions
Benefits paid to terminated and
retired participants 26,953,668 (643,179) (107,297) (951,233) (14,851)
Administrative expense 479,502 (1,361) (2,498) (1,260) (1,241)
------------------------------------------------------------------------------------------
27,433,170 (644,540) (109,795) (952,493) (16,092)
Net interfund transfers (3,647,490) 2,086,887 392,372 (1,598,348) 50,653
------------------------------------------------------------------------------------------
Net increase (decrease) (37,210,424) 4,148,732 1,714,931 715,272 210,653
Net assets available for benefits
at beginning of year 246,134,387 5,928,105 5,000,721 10,778,295 2,277,654
------------------------------------------------------------------------------------------
Net assets available for benefits
at end of year $208,923,963 $10,076,837 $6,715,652 $11,493,567 $2,488,307
==========================================================================================
FUND INFORMATION
------------------------------------------------------------------------------------------
FIDELITY
FIDELITY FIDELITY RETIREMENT FIDELITY
RETIREMENT ASSET GOVERNMENT MANAGED
GROWTH MANAGER MONEY MARKET INCOME LOAN
FUND FUND FUND FUND FUND TOTAL
------------------------------------------------------------------------------------------
Additions-
Contributions:
Andrew Corporation and
subsidiaries contributions $ - $ - $ - $ - $ - $ 10,895,272
-
Participant - - - - - 7,605,987
------------------------------------------------------------------------------------------
- - - - - 18,501,259
Investment income:
Interest and dividend income 431,086 168,210 256,074 161,918 - 4,952,964
Interest from loans to - - - - 883,454 928,223
participants
Miscellaneous income - - - - - 6,515
Net realized and unrealized
(depreciation) appreciation in
fair value of investments 578,988 328,885 - - - (20,129,166)
------------------------------------------------------------------------------------------
1,010,074 497,095 256,074 161,918 883,454 (14,241,464)
------------------------------------------------------------------------------------------
Total additions 1,010,074 497,095 256,074 161,918 883,454 4,259,795
Deductions
Benefits paid to terminated and
retired participants (386,673) (209,716) (2,954,085) (145,430) - 32,366,132
Administrative expense (124) (394) (2,539) (334) - 489,253
------------------------------------------------------------------------------------------
(386,797) (210,110) (2,956,624) (145,764) - 32,855,385
Net interfund transfers (45,450) (137,425) 2,591,219 566,494 (258,912) -
------------------------------------------------------------------------------------------
Net increase (decrease) 577,827 149,560 (109,331) 582,648 624,542 (28,595,590)
Net assets available for benefits
at beginning of year 3,812,110 2,099,481 4,828,377 2,356,775 11,443,731 294,659,636
------------------------------------------------------------------------------------------
Net assets available for benefits
at end of year $4,389,937 $2,249,041 $4,719,046 $2,939,423 $12,068,273 $266,064,046
==========================================================================================
</TABLE>
See notes to financial statements.
5
<PAGE> 10
Andrew Profit Sharing Plan
Notes to Financial Statements
Years ended September 30, 1998 and 1997
1. DESCRIPTION OF THE PLAN
GENERAL
The following description of the Andrew Profit Sharing Plan (the Plan) provides
only general information. Participants should refer to the Plan Agreement for a
more complete description of the Plan's provision.
The Plan is a defined-contribution plan covering certain United States employees
of Andrew Corporation and subsidiaries (the Company). An employee becomes
eligible to participate in the Plan on the first day of the calendar quarter
after completing 514 hours of service. Effective July 1, 1998, an employee
becomes eligible to participate in the Plan after completing 90 days of
continuous service. The Plan was established to afford employees an opportunity
to share in the Company's profits and to save systematically.
CONTRIBUTIONS
The Company's profit-sharing contribution is to be made from current earnings in
accordance with the Plan agreement and approval by the Board of Directors of the
Company. In addition, the Company matches amounts contributed by participants
subject to limitation by the Plan agreement (see below). However, in accordance
with the Tax Reform Act of 1986, the total amount contributed to the Plan by a
participant cannot exceed the lesser of 25% of compensation or the Internal
Revenue Code (IRC) limit.
Each participant's combined maximum contribution under the Plan is 15% of annual
gross earnings unless the participant's annual gross pay exceeds $80,000 in 1998
and $66,000 in 1997, in which case the maximum is limited to 10% of gross pay.
Participants with over two full years of service with the Company who contribute
3% or more of their gross earnings receive a Company matching contribution also
equal to 3% of their gross earnings.
INVESTMENT OPTIONS
Effective July 1, 1998, participants may elect to contribute to thirteen
investment fund options. There are no restrictions on interfund transfers except
for those involving Andrew Corporation common stock. These transfers are limited
to once per quarter.
6
<PAGE> 11
Andrew Profit Sharing Plan
Notes to Financial Statements (Continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
The following are descriptions of the investment options:
CORE INVESTMENT CHOICES
- - BENHAM STABLE ASSET FUND - Seeks to protect principal from market
volatility, yield higher than money market, and predictable annual return.
- - PIMCO TOTAL RETURN FUND - Seeks total returns consistent with preservation
of capital. The Fund invests at least 65% of assets in debt securities, and
may invest up to 20% in securities dominated in foreign currency. The
portfolio duration ranges three to six years.
- - PIMCO MID CAP GROWTH FUND - Seeks capital growth, invests in common stocks
of mid-cap companies that the investors judge to have improving
fundamentals and modest valuations.
- - AMERICAN CENTURY EQUITY INCOME FUND - Seeks current income with capital
appreciation as a secondary objective. Seeks to exceed the yield of
securities comprising the S&P 500 Composite Index.
- - AMERICAN CENTURY INCOME & GROWTH FUND - Seeks to provide dividend growth,
current income, and capital appreciation by investing in common stocks.
Seeks a total return and dividend yield that exceed those of the S&P 500.
- - AMERICAN CENTURY-TWENTIETH CENTURY INTERNATIONAL GROWTH FUND - Seeks
capital growth over time. Invests in common stocks of foreign companies.
- - BARCLAYS GLOBAL INVESTORS EQUITY INDEX FUND - Invests to match the
performance of the S&P 500 Index by investing in most of the same common
stocks.
- - J.P. MORGAN US SMALL COMPANY FUND - Seeks to provide a high total return by
investing in a portfolio of equity securities. Seeks to outperform the
Russell 2500 Index.
- - J.P. MORGAN DIVERSIFIED FUND - Seeks high total returns, invests
approximately 65% in equities and 35% in fixed income securities.
7
<PAGE> 12
Andrew Profit Sharing Plan
Notes to Financial Statements (Continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
- - ANDREW CORPORATION STOCK FUND-FIXED/TRADING ACCOUNTS - Seeks increased
stockholder value. Participants under age 55 are required to participate in
the Fixed Account which is a nonparticipant directed account. Additionally,
50% of profit-sharing contributions are directed towards this account.
Participants must hold these investments until they are 55. The trading
account is the participant directed portion of the stock fund.
NON-CORE INVESTMENT CHOICES (ALTERNATIVE INVESTMENT CHOICE THAT REQUIRES $50
ANNUAL INVESTMENT FEE PER FUND)
- - FIDELITY EQUITY-INCOME FUND - Seeks income and capital appreciation.
Invests in at least 65% of assets in income-producing equity securities and
the balance in all types of domestic and foreign securities.
- - FIDELITY PURITAN FUND - Seeks income consistent with preservation of
capital. Invests in a diversified array of high-yielding securities.
- - FIDELITY MAGELLAN FUND - Seeks capital appreciation. Invests in common
stocks and convertible securities with up to 20% of assets invested in debt
securities.
Prior to July 1, 1998, the Plan maintained three funds, The Collective Trust
Fund, the Fidelity Investment Fund, and the Loan Fund. Company and participant
contributions were directed to the Collective Trust Fund. Participants under age
55 could transfer up to 50% of their unencumbered Collective Trust Fund account
balances to the Fidelity Investment Funds (comprised of eight separate funds);
participants over age 55 could transfer 100% of their unencumbered account
balances. The Trustees designated that a participant could make only one
transfer between funds per Plan fiscal year; however, this limitation was
subject to change at the Trustees' discretion. Additionally, each participant
could at any time during the year and as often as desired without limit,
transfer amounts between any combination of the eight available Fidelity
Investment Funds.
INDIVIDUAL PARTICIPANT ACCOUNTS
Each participant's account is credited with the participant's contributions and
allocations of: a) the Company's contributions, b) Plan earnings, and c)
forfeited balances of terminated participants' nonvested accounts. The benefit
to which a participant is entitled is the benefit that can be provided from the
participant's account.
8
<PAGE> 13
Andrew Profit Sharing Plan
Notes to Financial Statements (Continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
PARTICIPANT NOTES RECEIVABLE
A participant may borrow from the Plan at terms deemed appropriate by the
Trustees. Loan amounts may not exceed limitations specified by the Trust
agreement and by the Tax Reform Act of 1986. Generally, loans are repayable
within five years, and a participant's total outstanding loan balance is limited
to the lesser of $50,000 or one-half of the participant's vested equity reduced
by the participant's highest loan balance during the preceding 12 months.
Interest on loans paid to the Plan is allocated to borrowers through the Loan
Fund at rates in effect at the time of the loan. Effective July 1, 1998, a loan
application fee of $50 was put into effect.
PAYMENT OF BENEFITS
Upon the retirement or death of a participant, distribution to the participant
or the participant's beneficiary may be made in a lump sum, in approximate equal
installments over a reasonable period, or by purchase of an annuity contract
from one or more life insurance companies, subject to certain limitations. The
annuity distribution option was discontinued for new participants subsequent to
January 1, 1998.
VESTING
Participants who leave the Company prior to retirement or disability receive the
full amount of their contributions and earnings thereon up to the date on which
such resignation or discharge occurs. In addition, participants receive the
entire amount of Company contributions, earnings thereon, and forfeitures
credited to them if the participants have five or more years of service with the
Company. Participants with less than five years of service receive 20% of the
Company contributions, earnings thereon, and forfeitures credited to them for
each year of service. The reduction resulting from less than five full calendar
years' service is defined as a forfeiture and is subsequently reallocated to the
remaining participants in the Plan as of the next succeeding year-end.
2. SIGNIFICANT ACCOUNTING POLICIES
INVESTMENT VALUATION
Investments are stated at fair value. Securities traded on a national securities
exchange are valued at the last reported sales price on the last business day of
the Plan's fiscal year; securities traded in over-the-counter markets and listed
securities for which no sale was
9
<PAGE> 14
Andrew Profit Sharing Plan
Notes to Financial Statements (Continued)
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
reported on that date are valued at the last reported bid price. Participation
units in common trust funds are carried at fair value as reported by the
respective fund trustees. Investments in mutual funds are stated at fair value,
using quoted market prices of underlying investments. Money market accounts are
carried at cost, which equals fair value.
Loans to participants are stated at principal amount outstanding, which
approximates fair value.
ADMINISTRATIVE EXPENSES
All costs and expenses incurred with regard to independent fund managers and
purchase and sale of investments are borne by the Plan. Administrative and
general expenses, principally payroll costs of Plan administration, are borne by
the Company.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires the plan administrator to make estimates and
assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
RECLASSIFICATION
Certain reclassifications have been made on the prior year's financial
statements to conform to the 1998 presentation.
RELATED PARTY TRANSACTION
On June 30, 1998, the Company purchased from the Plan 1,664,826 shares of Andrew
Corporation common stock at the June 30, 1998 average high/low price per share
of $18.344 per share. The total sale was $30,539,568.
10
<PAGE> 15
Andrew Profit Sharing Plan
Notes to Financial Statements (Continued)
3. INVESTMENTS
The Plan's investments (including investments bought, sold, and held during the
fiscal year) (depreciated)/appreciated in fair value in 1998 and 1997, as
follows:
NET REALIZED
AND UNREALIZED
(DEPRECIATION)
APPRECIATION
IN FAIR VALUE FAIR VALUE
DURING YEAR AT YEAR-END
----------------------------------
Year ended September 30, 1998:
Andrew Corporation common stock $ (55,391,104) $ 42,450,013
Mutual Funds (8,467,331) 110,168,193
Money market funds - 26,924,384
----------------------------------
$ (63,858,435) $179,542,590
==================================
Year ended September 30, 1997:
Andrew Corporation common stock $ (34,879,215) $129,425,539
Other corporate common stock 7,601,670 66,774,356
Fidelity Investment Funds 7,148,379 45,071,810
Money market funds - 1,065,097
----------------------------------
$ (20,129,166) $242,336,802
==================================
The fair value of individual investments that represent 5% or more of the Plan's
net assets are as follows:
SEPTEMBER 30
1998 1997
----------------------------------
Andrew Corporation common stock
(1998 - 3,200,049 shares;
1997 - 4,942,264 shares) $ 42,450,012 $129,425,539
LaSalle National Trust
Pooled Trust Fund - 14,581,778
Northern Trust Collective
Government Short-Term Investment Fund
- 52,192,578
Fidelity Magellan Fund 13,616,685 -
American Century Income & Growth Fund 22,128,262 -
Benham Stable Asset Fund 26,924,834 -
Barclay's Equity Index Fund 11,028,770 -
11
<PAGE> 16
Andrew Profit Sharing Plan
Notes to Financial Statements (Continued)
4. PLAN TERMINATION
The Company has the right to amend or alter the Plan or discontinue it by giving
written notice of intention to do so to the Trustees prior to the last day of
the Plan year for which such discontinuance becomes effective. In the event of
Plan termination, participants will become 100% vested in their accounts.
5. COMMON STOCK SPLIT
On March 11, 1997, the Company split its common stock, three shares for two, for
holders of record on February 25, 1997. Accordingly, the cost basis of the
common stock held by the Plan was adjusted.
6. INCOME TAX STATUS
The Internal Revenue Service ruled on December 29, 1995, that the Plan qualifies
under section 401(a) of the IRC, and, therefore, the related trust is not
subject to tax under present income tax law. Once qualified, the Plan is
required to operate in conformity with the IRC to maintain its qualification.
The plan administrator is not aware of any course of action or series of events
that have occurred that might adversely affect the Plan's qualified status.
7. YEAR 2000 ISSUE (UNAUDITED)
The Company has developed a plan to modify its internal information technology
to be ready for the year 2000 and is in the process of converting critical data
processing systems. They are also determining whether third-party service
providers have recoverable plans in place to become Year 2000 compliant. The
Company does not expect this project to have a significant effect on Plan
operations.
12
<PAGE> 17
Supplemental Schedules
<PAGE> 18
EIN 36-2092797
Plan #001
Andrew Profit Sharing Plan
Line 27a - Schedule of Assets Held for Investment Purposes
September 30, 1998
DESCRIPTION OF CURRENT
IDENTITY OF ISSUE INVESTMENT COST VALUE
- --------------------------------------------------------------------------------
COMMON STOCK
ANDREW CORPORATION*
Fixed - Nonparticipant directed 2,356,089 shares $ 1,001,244 $ 31,230,087
Trading - Participant directed 843,960 shares 358,605 11,219,926
----------------------------
1,359,849 42,450,013
FIDELITY INVESTMENT FUNDS*
Puritan Fund 457,924 shares 9,500,918 8,302,167
Magellan Fund 139,629 shares 15,216,622 13,616,685
Equity Income Fund 204,102 shares 11,552,302 10,123,462
PIMCO FUNDS
Total Return Fund 769,008 shares 8,260,193 8,528,300
Mid Cap Growth Fund 447,115 shares 10,780,367 9,165,854
AMERICAN CENTURY INVESTMENT
FUNDS*
Equity Income Fund 1,500,969 shares 10,465,764 9,651,235
International Growth Fund 611,905 shares 6,230,460 5,176,720
Income & Growth Fund 888,328 shares 25,217,038 22,128,262
SEI TRUST
Benham Stable Asset Fund 26,924,384 shares 26,924,384 26,924,384
J.P. MORGAN FUNDS
Diversified Fund 576,788 shares 8,739,612 8,109,635
U.S. Small Company Fund 201,632 shares 5,493,995 4,337,103
BARCLAYS GLOBAL INVESTORS
Equity Index Fund 456,489 shares 12,375,648 11,028,770
LOANS TO PARTICIPANTS Notes receivable
(8.25%-8.5%) - 11,778,856
---------------------------
Total investments $152,117,152 $191,321,446
===========================
*Indicates party in interest to the Plan.
13
<PAGE> 19
EIN 36-2092797
Plan #001
Andrew Profit Sharing Plan
Line 27d - Schedule of Reportable Transactions
Year ended September 30, 1998
<TABLE>
<CAPTION>
PURCHASE SELLING COST
IDENTITY OF PARTY INVOLVED DESCRIPTION OF ASSETS PRICE PRICE OF ASSET
- -----------------------------------------------------------------------------------------------------------------------------
Category (i) - Individual transactions in excess of 5% of plan assets
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
American Century Investments Income & Growth Fund $23,529,987 $ - $23,529,987
The Northern Trust Company Collective Government Short-Term Investment
Fund - 24,687,449 24,687,449
- 29,120,831 29,120,831
29,120,831 - 29,120,831
- 29,121,883 29,121,883
LaSalle National Trust, N.A. Money Market Fund - 15,325,529 15,325,529
SEI Trust Benham Stable Asset Fund 30,121,632 - 30,121,632
Andrew Corporation Andrew Corporation common stock - 30,539,568 231,410
Category (iii) - Series of transactions in excess of 5% of plan assets
- ----------------------------------------------------------------------
American Century Investments Income & Growth Fund 25,543,321 - 25,543,321
- 275,917 326,283
The Northern Trust Company Collective Government Short-Term
Investment Fund 30,868,388 - 30,868,388
- 83,058,443 83,058,443
LaSalle National Trust, N.A. Money Market Fund 851,769 - 851,769
- 15,433,545 15,433,545
Kemper Financial Services Money Market Fund 19,342,533 - 19,342,533
- 20,407,630 20,407,630
SEI Trust Benham Stable Asset Fund 32,616,595 - 32,616,595
- 5,692,213 5,692,213
Fidelity Investments Retirement Growth Fund 10,374,233 - 10,374,233
- 15,535,509 13,976,550
Fidelity Investments Retirement Government Money Market Fund
9,707,228 - 9,707,228
- 14,426,274 14,426,274
Fidelity Investments Equity Income Fund 10,941,685 - 10,941,685
- 10,935,610 6,545,260
Andrew Corporation Andrew Corporation Common Stock 920,471 - 920,471
- 32,832,812 250,736
CURRENT VALUE
OF ASSET ON
TRANSACTION DATE NET
IDENTITY OF PARTY INVOLVED GAIN (LOSS)
- ----------------------------------------------------------------------
Category (i) - Individual transaction
- -------------------------------------
<S> <C> <C>
American Century Investments $23,529,987 $ -
The Northern Trust Company
24,687,449 -
29,120,831 -
29,120,831 -
29,121,883 -
LaSalle National Trust, N.A. 15,325,529 -
SEI Trust 30,121,632 -
Andrew Corporation 30,539,568 30,308,158
Category (iii) - Series of transactions in excess of 5% of plan assets
- ----------------------------------------------------------------------
American Century Investments 25,543,321 -
275,917 (50,366)
The Northern Trust Company
30,868,388 -
83,058,443 -
LaSalle National Trust, N.A. 851,769 -
15,433,545 -
Kemper Financial Services 19,342,533 -
20,407,630 -
SEI Trust 32,616,595 -
5,692,213 -
Fidelity Investments 10,374,233 -
15,535,509 1,558,959
Fidelity Investments
9,707,228 -
14,426,274 -
Fidelity Investments 10,941,685 -
10,935,610 4,390,350
Andrew Corporation 920,471 -
32,832,812 32,582,076
</TABLE>
14
There were no category (ii) or (iv) transactions during the year ended
September 30, 1998.
<PAGE> 20
Consent of Independent Auditors
We consent to the incorporation by reference in the Registration Statement on
Form S-8. (File No. 333-57273) pertaining to the Andrew Profit Sharing Plan of
Andrew Corp. of our report dated February 24, 1999, with respect to the
financial statements and schedules of the Andrew Profit Sharing Plan included in
this Annual Report (Form 11-K) for the year ended September 30, 1998.
Chicago, IL
March 25, 1999
<PAGE> 21
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934,
the Administrative Committee, which administers the Plan, has duly caused this
annual report to be signed on its behalf by the undersigned thereunto duly
authorized.
ANDREW PROFIT SHARING PLAN
By:
------------------------
Date:
