IOMEGA RETIREMENT AND INVESTMENT SAVINGS PLAN
FINANCIAL STATEMENTS AS OF
DECEMBER 31, 1994 AND 1993
TOGETHER WITH REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Trustees of the Iomega Retirement and Investment Savings Plan:
We have audited the accompanying statements of net assets available for
benefits of the Iomega Retirement and Investment Savings Plan (the "Plan") as
of December 31, 1994 and 1993, and the related statement of changes in net
assets available for benefits for the year ended December 31, 1994. These
financial statements and the schedules referred to below are the responsi-
bility of the Plan's trustees. Our responsibility is to express an opinion on
these financial statements and schedules 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 the trustees, 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 Iomega
Retirement and Investment Savings Plan as of December 31, 1994 and 1993, and
the changes in its net assets available for benefits for the year ended
December 31, 1994 in conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
held for investment purposes and reportable transactions are presented for
purposes of additional analysis and are not a required part of the basic
financial statements but are 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
schedules have been subjected to the auditing procedures applied in the audits
of the basic financial statements and, in our opinion, are fairly stated in
all material respects in relation to the basic financial statements taken as a
whole.
ARTHUR ANDERSEN
Salt Lake City, Utah
July 21, 1995
<PAGE>
IOMEGA RETIREMENT AND INVESTMENT SAVINGS PLAN
INDEX TO FINANCIAL STATEMENTS AND SCHEDULES
Statements of Net Assets Available for
Benefits as of December 31, 1994 and 1993 1
Statement of Changes in Net Assets
Available for Benefits for the Year Ended
December 31, 1994 2
Notes to Financial Statements 3-6
Schedule of Assets Held for Investment
Purposes as of December 31, 1994 7
Schedule of Reportable Transactions for
the Year Ended December 31, 1994 8
<PAGE>
IOMEGA RETIREMENT AND INVESTMENT SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
AS OF DECEMBER 31, 1994 AND 1993
<TABLE>
DECEMBER 31, 1994
Retirement
GIC Money
Open-End Market Short Term
Magellan Contrafund Portfolio Portfolio Bond
----------- ----------- ---------- ----------- -----------
<C> <S> <S> <S> <S> <S>
INVESTMENTS,
at fair value $ 404,965 $ 4,454,635 $ 2,144,444 $ 1,128,308 $ 514,129
RECEIVABLES:
Employee contributions - 23,810 7,926 5,932 2,379
Employer contributions - 118,964 75,764 37,379 13,144
----------- ----------- ----------- ----------- ----------
NET ASSETS $ 404,965 $ 4,597,409 $ 2,228,134 $ 1,171,619 $ 529,652
=========== =========== =========== =========== ==========
</TABLE>
<TABLE>
U.S. Total
Equity Asset Equity Participant All
Income II Manager Index Loans Funds
----------- ----------- ----------- ----------- --------
DECEMBER 31, 1994 (CONT.)
<C> <S> <S> <S> <S> <S>
INVESTMENTS,
at fair value $ 1,410,501 $ 1,160,550 $ 195,295 $ 67,271 $11,480,098
RECEIVABLES:
Employee contributions 6,371 5,674 1,349 - 53,441
Employer contributions 36,745 32,006 4,785 - 318,787
----------- ----------- ----------- ---------- -----------
NET ASSETS $ 1,453,617 $ 1,198,230 $ 201,429 $ 67,271 $11,852,326
=========== =========== =========== ========== ===========
</TABLE>
DECEMBER 31, 1993
<TABLE>
Retirement
GIC Money
Open-End Market Short Term
Magellan Contrafund Portfolio Portfolio Bond
----------- ----------- ----------- ----------- -----------
<C> <S> <S> <S> <S> <S>
INVESTMENTS,
at fair value $ 416,950 $ 4,356,200 $ 1,886,829 $ 1,127,133 $ 631,674
RECEIVABLES:
Employee contributions - 52,735 14,778 15,160 6,046
Employer contributions - 157,978 85,740 44,425 19,740
---------- ----------- ----------- ----------- -----------
NET ASSETS $ 461,950 $ 4,566,913 $ 1,987,347 $ 1,186,718 $ 657,460
========== =========== =========== =========== ===========
</TABLE>
DECEMBER 31, 1993 (CONT.)
<TABLE>
U.S. Total
Equity Asset Equity Participant All
Income II Manager Index Loans Funds
----------- ----------- ----------- ----------- ----------
<C> <S> <S> <S> <S> <S>
INVESTMENTS,
at fair value $ 1,393,065 $ 1,085,838 $ 188,198 $ - $11,085,887
RECEIVABLES:
Employee contributions 13,518 13,095 2,702 - 118,034
Employer contributions 41,543 42,494 6,218 - 398,138
----------- ----------- ----------- ----------- -----------
NET ASSETS $ 1,448,123 $ 1,141,427 $ 197,118 $ - $11,602,059
=========== =========== =========== =========== ===========
</TABLE>
The accompanying notes to financial statements are an integral
part of these statements.
IOMEGA RETIREMENT AND INVESTMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
Retirement
GIC Money Short
Open-End Market Term
Magellan Contrafund Portfolio Portfolio Bond
----------- ----------- ----------- ----------- -----------
<C> <S> <S> <S> <S> <S>
ADDITIONS TO NET ASSETS
ATTRIBUTABLE TO:
Contributions-
Employee $ - $ 599,625 $ 193,304 $ 164,236 $ 71,007
Employer - 118,964 75,764 37,379 13,144
Rollover - 25,448 - - -
----------- ----------- ----------- ----------- -----------
- 744,037 269,068 201,615 84,151
Investment Income-
Interest and
dividends 16,301 32,710 115,193 43,659 35,229
Realized gain (loss) (354) (11,138) - - (7,598)
Net unrealized
appreciation
(depreciation) in
fair value
of investments (23,581) (79,215) - - (51,320)
----------- ----------- ----------- ----------- -----------
(7,634) (57,643) 115,193 43,659 (23,689)
----------- ----------- ----------- ----------- -----------
Total additions (7,634) 686,394 384,261 245,274 60,462
----------- ----------- ----------- ----------- -----------
REDUCTIONS IN NET ASSETS
ATTRIBUTABLE TO:
Distributions to
participants (4,351) (576,561) (192,136) (220,584) (118,070)
Transfers between funds - (79,337) 48,662 (39,789) (70,200)
----------- ----------- ----------- ------------ ----------
Total reductions (4,351) (655,898) (143,474) (260,373) (188,270)
----------- ----------- ----------- ------------ ----------
Net additions
(reductions) (11,985) 30,496 240,787 (15,099) (127,808)
NET ASSETS:
Beginning of year 416,950 4,566,913 1,987,347 1,186,718 657,460
----------- ----------- ----------- ----------- -----------
End of year $ 404,965 $ 4,597,409 $ 2,228,134 $ 1,171,619 $ 529,652
=========== =========== =========== =========== ===========
</TABLE>
U.S. Total
Equity Asset Equity Participant All
Income II Manager Index Loans Funds
----------- ----------- ----------- ----------- ----------
<TABLE>
<C> <S> <S> <S> <S> <S>
ADDITIONS TO NET ASSETS
ATTRIBUTABLE TO:
Contributions-
Employee $ 169,463 $ 171,259 $ 35,155 $ - $ 1,404,049
Employer 36,744 32,007 4,785 - 318,787
Rollover 8,735 13,176 4,094 - 51,453
----------- ----------- ----------- ----------- -----------
214,942 216,442 44,034 - 1,774,289
----------- ----------- ----------- ----------- -----------
Investment Income-
Interest and
dividends 95,455 46,712 6,020 2,318 393,597
Realized gain (loss) 10,075 (13,719) (886) - (23,620)
Net unrealized
appreciation
(depreciation) in
fair value
of investments (59,310) (121,809) (3,243) - (338,478)
----------- ----------- ----------- ----------- -----------
46,220 (88,816) 1,891 2,318 31,499
----------- ----------- ----------- ----------- -----------
Total additions 261,162 127,626 45,925 2,318 1,805,788
----------- ----------- ----------- ----------- -----------
REDUCTIONS IN NET ASSETS
ATTRIBUTABLE TO:
Distributions to
participants (309,467) (122,891) (3,465) (7,996) (1,555,521)
Transfers between funds 53,796 52,068 (38,149) 72,949 -
----------- ----------- ----------- ----------- -----------
Total reductions (255,671) (70,823) (41,614) 64,953 (1,555,521)
----------- ----------- ----------- ----------- -----------
Net additions
(reductions) 5,491 56,803 4,311 67,271 250,267
NET ASSETS:
Beginning of year 1,448,126 1,141,427 197,118 - 11,602,059
----------- ----------- ----------- ----------- -----------
End of year $ 1,453,617 $ 1,198,230 $ 201,429 $ 67,271 $11,852,326
=========== =========== =========== =========== ===========
</TABLE>
The accompanying notes to financial statements are an integral part
of this statement.
<PAGE>
IOMEGA RETIREMENT AND INVESTMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(1) PLAN DESCRIPTION
Participation
Iomega Corporation ("Iomega") adopted the Iomega Retirement and Investment
Savings Plan (the "Plan") effective July 1, 1985. The Plan was established to
provide employees an opportunity to accumulate funds for retirement or
disability and to provide death benefits for employees' dependents and
beneficiaries.
Certain members of management of Iomega served as trustees of the trust which
holds the Plan assets through December 31, 1994. Effective January 1, 1995,
Fidelity Management Trust Company was appointed as trustee of the Plan.
Iomega administers the Plan with the assistance of an external administrative
consultant.
The following description of the Plan provides only general information.
Participants should refer to the Plan agreement for a more complete
description of the Plan s provisions.
Eligibility, Contributions and Benefits
Employees who have completed six months of service and who have attained 21
years of age are eligible to participate in the Plan. Each eligible employee
is required to make an election to participate in the Plan. At that time,
each participant elects both the contribution amount and its distribution to
the various investment funds within the Plan. Elected percentages can range
from 2 percent to 15 percent of qualifying gross compensation on a before-tax
basis, subject to IRS limitations.
Iomega may make additional contributions and the Board of Directors of Iomega
determines each year the amount and manner of matching contribution allocation
to be made to the accounts of eligible participants. Iomega matched employee
contributions in amounts up to $650 per participant for 1994, totaling
$318,787. Participants immediately vest in all contributions.
Benefits are normally paid upon retirement, death, disability or other
termination. Upon termination of service, participants may elect to receive
payment from their accounts in a lump sum, periodic installments, an annuity
or a combination of these methods. Actively employed participants may only
withdraw funds from the Plan pursuant to specific restrictions set forth in
the Plan agreement.
Investment Options
The Plan provides for nine investment options. These options, as well as the
number of participants investing in each option, are as follows: the Magellan
Fund, 21 participants; the Contrafund, 476 participants; the GIC Open-End
Portfolio, 316 participants; the Retirement Money Market Portfolio, 172
participants; the Equity-Income II Fund, 203 participants; the Asset Manager,
166 participants; the Short-Term Bond Portfolio, 104 participants; the U.S.
Equity Index Portfolio, 36 participants; and a loan fund, 11 participants (the
Funds ). The Loan Fund is managed by Iomega and the remaining eight funds
are managed by the Fidelity Management & Research Company ( Fidelity ), an
affiliate of Fidelity Management Trust Company. No sales charge is levied on
the funds managed by Fidelity, however, an annual fee is charged by Fidelity
to cover the operating expenses of each fund, including the investment
advisory fee. This fee is deducted from the investment return of each fund.
The Magellan Fund seeks capital appreciation by maintaining a portfolio
primarily invested in common stocks and securities convertible into common
stocks. Up to 20 percent of this fund may also be invested in debt securities
of all types and quality levels issued by domestic and foreign issuers. The
fund is relatively aggressive in pursuing growth. Dividends are declared and
posted to the participant's account in May and December of each calendar year.
The undistributed semi-annual dividends are reinvested to purchase additional
shares in the fund.
The Contrafund seeks capital appreciation by investing in companies that are
believed to be undervalued or out of favor. When market conditions warrant,
the fund may also invest temporarily in investment-grade debt securities. The
fund is relatively aggressive in pursuing growth.
The GIC Open-End Portfolio seeks preservation of capital and a competitive
level of income over time. The portfolio invests in contracts with rates and
maturities that are set monthly and provide current, competitive interest
rates as well as longer term contracts with fixed rates of interest.
The Retirement Money Market Portfolio invests in high-quality money market
instruments of domestic and foreign issuers which are denominated in U.S.
dollars. Such instruments are short-term obligations and range from U.S.
Government securities to prime commercial paper issued by private borrowers.
The fund seeks to obtain as high a level of current income as possible, given
its principal objective of preserving capital and maintaining a share value of
$1.00. Interest income is earned daily and posted to the participant s
account at the end of each calendar month or at the time of total distribution
of the account. The monthly income is applied to purchase additional shares
in the fund.
The Equity Income II Fund seeks income by investing primarily in income-
producing equity securities, considering the potential for capital
appreciation. The fund seeks a yield exceeding the Standard & Poor s Daily
Stock Price Index 500 ( S&P 500 ). The fund is considered to be relatively
conservative among growth and income funds.
Asset Manager seeks high total return with reduced risk over the long term by
using a balanced mix of stocks, bonds and short-term instruments. The fund
earns dividends daily, and the dividends are posted to the participant s
account in the last month of each calendar quarter or at the time of total
distribution of the account. The undistributed dividends are reinvested to
purchase more shares in the fund.
The Short-Term Bond Portfolio invests in a broad range of fixed-income
securities. Securities in the portfolio are primarily investment grade or
better with maturities typically less than three years. The portfolio seeks
high current income consistent with preservation of capital.
The U.S. Equity Index Portfolio has the goal of replicating the total return
provided by the stocks included in the S&P 500. The fund buys and holds
virtually all of the 500 stocks contained in the S&P 500 weighted in the same
manner. The fund earns dividends daily, and the dividends are posted to the
participant s account in the last month of each calendar quarter or at the
time of total distribution of the account. The undistributed dividends are
reinvested to purchase more shares in the fund.
The Loan Fund is invested solely in promissory notes executed by participants.
With the Plan s consent, a participant may borrow from his or her account up
to the lesser of $50,000 or 50 percent of the participant's vested interest.
The outstanding balance of all prior loans under the Plan or any other plan
maintained by the Company or its affiliates reduces the amount available for
future loans. Moreover, the $50,000 limit is reduced by the amount of any
loan repayments made during the most recent 12 months. The minimum amount for
any loan is $1,000. As of December 31, 1994, the loans bear interest at rates
ranging from 7.52 to 8.95 percent. Loans must be repaid within five years,
except for loans used to acquire a principal residence which must be repaid
over a reasonable period of time. All loans, regardless of term, become due
and payable as soon as the participant's employment terminates.
Termination of the Plan
Iomega may terminate the Plan at any time subject to the provisions of the
Employee Retirement Security Act of 1974 as amended.
(2) SUMMARY OF ACCOUNTING POLICIES
Basis of Accounting
The accounting records of the Plan are maintained on the accrual basis in
accordance with generally accepted accounting principles. Distributions to
participants are recorded when paid.
Investments
Contributions are invested in various securities. Participants direct the
trustees as to the investment of all contributions. Investments are carried
at fair value based on quoted market prices. Unrealized appreciation or
depreciation caused by fluctuations in the fair value of investments is
recognized currently. Interest and dividends are reinvested as earned.
Expenses
Iomega pays all administrative expenses and fees relating to investment and
management of Plan funds, including legal and accounting fees.
(3) NET UNREALIZED APPRECIATION (DEPRECIATION)
IN FAIR MARKET VALUE OF INVESTMENTS
The Plan provides that the fair value of all investments shall be determined
at the end of each Plan year. Net unrealized appreciation or depreciation in
the fair value of investments is determined by computing the difference
between the fair value of each investment at the beginning of the Plan year
(or at the date of purchase for investments acquired during the Plan year)
with the fair market value at the end of the Plan year.
(4) FEDERAL INCOME TAXES
The Plan is subject to the Employee Retirement Income Security Act of 1974
("ERISA") and certain provisions of the Internal Revenue Code ("IRC"). The
Plan is intended to qualify under Section 401(a) of the IRC. The Internal
Revenue Service issued a favorable determination letter dated October 26, 1994
ruling that the Plan was designed in accordance with applicable IRC
requirements as of that date. The Plan's trustees and legal counsel believe
that the Plan continues to be designed and operated in accordance with
applicable IRC requirements. The Plan does not provide for federal income
taxes as the qualified plan trust is exempt from income taxes.
<PAGE>
IOMEGA RETIREMENT AND INVESTMENT SAVINGS PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1994
(c) Number
of (e) Current
(a) (b) Issuer/Investment Type Units Held (d) Cost Value
---- -------------------------- ------------ ---------- -----------
Fidelity Investments:
Magellan 6,062 $ 375,610 $ 404,965
Contrafund 147,115 4,217,817 4,454,635
GIC Open-End Portfolio 2,144,444 2,144,444 2,144,444
Retirement Money Market
Portfolio 1,128,308 1,128,308 1,128,308
Equity Income II 79,599 1,385,139 1,410,501
Asset Manager 83,915 1,162,545 1,160,550
Short Term Bond 59,782 559,920 514,129
U.S. Equity Index 11,549 177,267 195,295
Other:
* Participant Loans Rates
ranging from
7.52% to
8.95% 67,271 67,271
----------- -----------
$11,218,321 $11,480,098
=========== ===========
* denotes party-in-interest
<PAGE>
IOMEGA RETIREMENT AND INVESTMENT SAVINGS PLAN
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
Current
(c) (d) (g) Value at
(a) Identity of (b) Description Number of Purchase Selling Cost of Transaction (i)
Party Involved of Asset Transactions Price Price Asset Date Net Gain
-------------------- ------------------- ------------ -------- -------- ------- ----------- ----------
<C> <S> <S> <S> <S> <S> <S> <S>
Fidelity Investments
Institutional Services 31,290 shares of
Co. Contrafund 93 $961,804 $ - $ - $ 961,804 N/A
Fidelity Investments
Institutional Services 25,427 shares of
Co. Contrafund 61 - 773,014 729,315 773,014 43,699
Fidelity Investments
Institutional Services 32,598 shares of Asset
Co. Manager 77 492,071 - - 492,071 N/A
Fidelity Investments
Institutional Services 19,192 shares of Asset
Co. Manager 36 - 281,831 274,740 281,831 7,091
Fidelity Investments
Institutional Services 24,715 shares of Equity
Co. Income II 74 459,395 - - 459,395 N/A
Fidelity Investments
Institutional Services 20,785 shares of Equity
Co. Income II 34 - 392,724 356,609 392,724 36,115
Fidelity Investments
Institutional Services 409,495 units of
Co. Retirement Money
Market Portfolio 79 409,495 - - 409,495 N/A
Fidelity Investments
Institutional Services 408,320 units of
Co. Retirement Money
Market Portfolio 41 - 408,320 408,320 408,320 -
Fidelity Investments
Institutional Services 489,330 units GIC Open-
Co. End Portfolio 69 489,330 - - 489,330 N/A
Fidelity Investments
Institutional Services 231,715 units GIC Open-
Co. End Portfolio 37 - 231,715 231,715 231,715 -
</TABLE>
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Plan Administrator has duly caused this annual report to be signed by
the undersigned thereunto duly authorized.
IOMEGA RETIREMENT AND INVESTMENT
SAVINGS PLAN
--------------------------------
(Registrant)
/s/ Daniel W. Henrie
--------------------------------
Daniel W. Henrie
August 23, 1995 Plan Administrator
