<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K/A
(Mark One)
/x/ ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 for the fiscal year ended DECEMBER 31, 1998; or
/ / TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 for the transition period from ______________ to
--------------
COMMISSION FILE NUMBER 001-08045
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
GenRad Choice Investment Plan
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
GenRad, Inc.
7 Technology Park Drive
Westford, MA 01886
<PAGE>
REQUIRED INFORMATION
In accordance with General Instruction A to Form 11-K, the plan is filing this
amendment to its Form 11-K filed on March 26, 1999 to include, as Appendix 1
hereto, its financial statements and schedules prepared in accordance with the
financial reporting requirements of ERISA and examined by an independent
accountant on a full scope basis.
EXHIBITS
23.1 Consent of PricewaterhouseCoopers LLP.
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
thereunto duly authorized.
GENRAD CHOICE INVESTMENT PLAN
By: GenRad, Inc.
Date JUNE 29, 1999 By: /s/ WALTER A. SHEPHARD
------------------ -----------------------------------------
Name: Walter A. Shephard
Title: Chief Financial Officer
<PAGE>
Appendix 1
GENRAD CHOICE INVESTMENT PLAN
Financial Statements as of and for the
years ended December 31, 1998 and 1997
Additional information required for Form 5500
for the year ended December 31, 1998
<PAGE>
GENRAD CHOICE INVESTMENT PLAN
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE NUMBER
-----------
<S> <C>
REPORT OF INDEPENDENT ACCOUNTANTS 1
BASIC FINANCIAL STATEMENTS
Statements of Net Assets Available for Benefits 2
Statements of Changes in Net Assets Available for Benefits 3
Notes to Financial Statements 4-13
ADDITIONAL INFORMATION *
Schedule I - Schedule of Assets Held for Investment Purposes 14
Schedule II - Schedule of Reportable Transactions (Transactions
or Series of Transactions in Excess of 5% of Plan
Assets) 15
</TABLE>
* Other supplemental schedules required by Section 2520.103-10 of the Department
of Labor Rules and Regulations for Reporting and Disclosure under ERISA have
been omitted because they are not applicable.
<PAGE>
Report of Independent Accountants
To the Participants and Administrator of
GenRad Choice Investment Plan
In our opinion, the accompanying statements of net assets available for benefits
and the related statements of changes in net assets available for benefits
present fairly, in all material respects, the net assets available for benefits
of GenRad Choice Investment Plan (the "Plan") at December 31, 1998 and 1997 and
the changes in net assets available for benefits for the two years in the period
ended December 31, 1998 in conformity with generally accepted accounting
principles. 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 of these statements in
accordance with generally accepted auditing standards which 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, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for the opinion expressed
above.
Our audits were conducted 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 the
purpose 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. These supplemental
schedules are the responsibility of the Plan's management. 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.
/s/ PRICEWATERHOUSECOOPERS LLP
- ----------------------------------
PricewaterhouseCoopers LLP
June 23, 1999
<PAGE>
GENRAD CHOICE INVESTMENT PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AS OF DECEMBER 31,
1998 1997
------------ ------------
<S> <C> <C>
INVESTMENTS, AT FAIR VALUE
Registered investment companies:
Vanguard International Growth Fund $ 1,002,036.16 $ 767,647.10
Vanguard LifeStrategy Conservative Growth Fund 83,004.48 17,994.25
Vanguard LifeStrategy Growth Fund 1,784,647.74 1,050,035.43
Vanguard LifeStrategy Income Fund 108,350.55 236,738.73
Vanguard LifeStrategy Moderate Growth Fund 1,149,983.10 669,280.82
Vanguard Prime Money Market Fund * 8,872,613.77 * 8,156,213.66
Vanguard PRIMECAP Fund * 3,906,733.57 2,031,366.35
Vanguard Total Bond Market Index Fund * 3,070,148.44 * 2,414,999.09
Vanguard Wellington Fund * 13,310,596.18 * 12,186,318.88
Vanguard Windsor II Fund * 18,804,063.02 * 15,945,109.85
---------------- ----------------
52,092,177.01 43,475,704.16
GenRad Common Stock Fund * 3,627,860.83 * 6,915,724.96
Participant loans 1,034,611.27 780,264.38
---------------- ----------------
TOTAL INVESTMENTS 56,754,649.11 51,171,693.50
---------------- ----------------
RECEIVABLES
Employer's contributions - 79,197.22
Participants' contributions - 185,182.42
Loan payments - 27,887.32
---------------- ----------------
TOTAL RECEIVABLES - 292,266.96
---------------- ----------------
NET ASSETS AVAILABLE FOR BENEFITS $ 56,754,649.11 $ 51,463,960.46
---------------- ----------------
---------------- ----------------
</TABLE>
* Represents 5% or more of net assets available for benefits.
The accompanying notes are an integral part of the financial statements.
-2-
<PAGE>
GENRAD CHOICE INVESTMENT PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1998 1997
----------------------------------------------
<S> <C> <C>
ADDITIONS
Investment income:
Interest and dividend income, investments $ 4,298,548.51 $ 3,266,591.51
Interest income, participant loans 90,332.25 54,418.88
Net appreciation (depreciation) in fair value of investments (1,197,921.31) 6,208,147.24
----------------------------------------------
3,190,959.45 9,529,157.63
----------------------------------------------
Contributions:
Employer 1,469,237.01 977,757.15
Participant 4,348,152.50 2,963,994.12
----------------------------------------------
5,817,389.51 3,941,751.27
----------------------------------------------
Asset transfers in 537,083.20 315,558.83
Other additions/deductions 11,746.80 -
----------------------------------------------
TOTAL ADDITIONS 9,557,178.96 13,786,467.73
----------------------------------------------
DEDUCTIONS
Payment of benefits 4,242,536.65 3,518,244.14
Administrative expenses 23,953.66 30,645.00
----------------------------------------------
TOTAL DEDUCTIONS 4,266,490.31 3,548,889.14
----------------------------------------------
NET INCREASE 5,290,688.65 10,237,578.59
Net assets available for plan benefits:
Beginning of period 51,463,960.46 41,226,381.87
----------------------------------------------
End of period $ 56,754,649.11 $ 51,463,960.46
----------------------------------------------
----------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
-3-
<PAGE>
GENRAD CHOICE INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1 - DESCRIPTION OF PLAN
The following description of the GenRad Choice Investment Plan ("Plan") provides
only general information. Participants should refer to the Plan Agreement for a
more complete description of the Plan's provisions.
GENERAL
The Plan is a defined contribution plan covering all full-time employees of the
GenRad, Inc. ("Company") who have at least one month of service with the Company
or any of its subsidiaries. The Plan was established on December 31, 1943 and
has been amended from time to time. It is subject to the provisions of the
Employee Retirement Income Security Act of 1974 ("ERISA"). The Plan is
administered by an administrative committee appointed by the Company.
CONTRIBUTIONS
Participants may contribute up to 15% of their annual compensation to the extent
that the contributions comply with Internal Revenue Code ("IRC") limitations.
These contributions are not subject to federal income taxes until withdrawn, in
accordance with Section 401(k) of the IRC. Effective July 1, 1998, the Company
matches 50% of employee contributions, up to a maximum of 10% of compensation
paid. Prior to this date, the Company matched 50% of employee contributions, up
to a maximum of 6% of compensation paid. The Plan also includes a profit-sharing
component, whereby the Company may make a contribution from its consolidated
current or accumulated earnings in an amount determined by the Board of
Directors on or before the last day of the Company's fiscal year. No
profit-sharing contributions were made during 1998 or 1997.
PARTICIPANT ACCOUNTS
A separate account is maintained for each investment option of a participant by
type of contribution. Each participant's account is credited with the
participant's contribution and allocations of (a) the Company's contributions
and, (b) Plan earnings, and charged with an allocation of administrative
expenses. Plan earnings are allocated and credited to the account daily based on
the adjusted balance of each participant's account. The benefit to which a
participant is entitled is the benefit that can be provided from the
participant's vested account. Administrative expenses are charged to each
participant's account on a quarterly basis totaling $20 annually.
VESTING
Participants who were employees on or prior to December 31, 1995 are fully
vested in all Company and employee voluntary contributions plus actual earnings
thereon upon entering the Plan. Participants who became employees subsequent to
December 31, 1995 are fully vested in all employee contributions and earnings
thereon upon entering the Plan. Company contributions and related earnings for
these participants, however, vest at a rate of 25% per year of service.
PARTICIPANT LOANS
Participants may borrow from their fund accounts a minimum of $1,000 up to a
maximum equal to the lesser of $50,000 or 50% of their account balance. Loan
transactions are treated as a transfer to (from) the investment fund from
(to) Participant loans. Loan terms can be no longer than five years or up to
fifteen years for the purchase of a primary residence. The loans are secured
by the balance in the participant's account and bear interest at a rate
commensurate with the prime rate. Interest rates range from six to nine
percent. Principal and interest is paid ratably through monthly payroll
deductions.
-4-
<PAGE>
GENRAD CHOICE INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
PAYMENT OF BENEFITS
In case of a normal retirement, retirement due to permanent disability or
termination of employment, participants may elect to receive the value of
their vested account balance in a lump sum, in accordance with the provisions
of the Plan. In the event that a participant dies before retirement, the
beneficiary will receive the value of the participant's vested account
balance in a lump-sum distribution, less the value of outstanding loans made
to the participant. Participants qualifying for a hardship withdrawal may
receive all or a portion of their contributions, plus investment return
earned thereon, but not more than the amount necessary to meet the financial
hardship.
FORFEITED ACCOUNTS
At December 31, 1998, forfeited nonvested accounts totaled $53,500. These
accounts will be used to reduce future employer contributions. In 1998, employer
contributions were not reduced by any amounts from forfeited nonvested accounts.
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% vested in their accounts.
INVESTMENT OPTIONS
During the plan years ending December 31, 1998 and 1997, participants were able
to allocate their contributions among the following investment options:
VANGUARD INTERNATIONAL GROWTH FUND: Seeks to provide long-term growth
of capital by investing in stocks of high-quality, seasoned companies
based outside the United States. Stocks are selected from more than 15
countries.
VANGUARD LIFESTRATEGY CONSERVATIVE GROWTH FUND: Seeks to provide a high
level of income and moderate long-term growth of capital and income by
investing in five Vanguard funds: a domestic stock fund, an
international stock fund, two bond funds, and an asset allocation fund.
The fund's asset allocation ranges are expected to be 25%-50% stocks,
50%-75% bonds, and 0%-25% cash investments.
VANGUARD LIFESTRATEGY GROWTH FUND: Seeks to provide long-term growth of
capital by investing in four other Vanguard funds: a domestic stock
fund, an international stock fund, a bond fund, and an asset allocation
fund. The fund's asset allocation ranges are expected to be 65%-90%
stocks, 10%-35% bonds, and 0%-25% cash investments.
VANGUARD LIFESTRATEGY INCOME FUND: Seeks to provide a high level of
income by investing in four Vanguard funds: a stock fund, two bond
funds, and an asset allocation fund. The fund's asset allocation ranges
are expected to be 5%-30% stocks, 70%-95% bonds, and 0%-25% cash
investments.
VANGUARD LIFESTRATEGY MODERATE GROWTH FUND: Seeks to provide a
reasonable level of income and long-term growth of capital and income
by investing in four Vanguard funds: a domestic stock fund, an
international stock fund, a bond fund, and an asset allocation fund.
The fund's asset allocation ranges are expected to be 45%-70% stocks,
30%-55% bonds, and 0%-25% cash investments.
-5-
<PAGE>
GENRAD CHOICE INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
VANGUARD PRIME MONEY MARKET FUND: Seeks to provide high income and a
stable share price of $1 by investing in short-term, high-quality money
market instruments issued by financial institutions, non-financial
corporations, the U.S. government, and federal agencies.
VANGUARD PRIMECAP FUND: Seeks long-term growth of capital by investing
in stocks of companies with above-average prospects for continued
earnings growth, strong industry positions, and skilled management
teams.
VANGUARD TOTAL BOND MARKET INDEX FUND: Seeks to provide a high level of
interest income by attempting to match the performance of the unmanaged
Lehman Brothers Aggregate Bond Index, which is a widely recognized
measure of the entire taxable U.S. bond market.
VANGUARD WELLINGTON FUND: Seeks to provide income and long-term growth
of capital without undue risk to capital by investing about 65% of its
assets in stocks and the remaining 35% in bonds.
VANGUARD WINDSOR II FUND: Seeks to provide long-term growth of capital
and income from dividends by investing in a diversified group of
out-of-favor stocks of large-capitalization companies. The stocks
generally sell at prices below the overall market average compared to
their dividend income and future return potential.
GENRAD COMMON STOCK FUND: Seeks to provide the potential for long-term
growth through increases in the value of the stock and reinvestment of
its dividends.
NOTE 2 - SUMMARY OF ACCOUNTING POLICIES
The following accounting policies, which conform with generally accepted
accounting principles, have been used consistently in the preparation of the
Plan's financial statements:
BASIS OF ACCOUNTING
The financial statements of the Plan are prepared under the accrual method of
accounting.
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 reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of additions and deductions during the reporting period.
Actual results could differ from those estimates.
INVESTMENT VALUATION AND INCOME RECOGNITION
The Plan's investments are stated at fair value. Shares of registered investment
companies are valued at quoted market prices which represent the net asset value
of shares held by the Plan at year-end. The Company stock fund is valued at its
year-end unit closing price (comprised of year-end market price plus uninvested
cash position). Participant loans are valued at cost which approximates fair
value.
-6-
<PAGE>
GENRAD CHOICE INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Purchases and sales of investments are recorded on a trade-date basis. Interest
income is accrued when earned. Dividend income is recorded on the ex-dividend
date. Capital gain distributions are included in dividend income.
PAYMENT OF BENEFITS
Benefits are recorded when paid.
RECLASSIFICATION
Certain amounts in the 1997 financial statements have been reclassified to
conform to the current year presentation.
NOTE 3 - RELATED PARTY TRANSACTIONS
The Plan invests in shares of mutual funds managed by an affiliate of
Vanguard Fiduciary Trust Company ("VFTC"). VFTC acts as trustee for Plan
assets. Transactions in such investments qualify as party-in-interest
transactions which are exempt from the prohibited transaction rules. During
the year the Plan had purchases of $1,383,940 and sales of $1,752,328 of
Company stock.
NOTE 4 - PLAN EXPENSES
The Company pays a portion of the expenses for services necessary for the
administration of the Plan.
NOTE 5 - TAX STATUS
The Internal Revenue Service has determined and informed the Company by a
letter dated July 3, 1995, that the plan and related trust are designed in
accordance with applicable sections of the 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.
-7-
<PAGE>
GENRAD CHOICE INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 6 - CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND
The allocation of changes in net assets available for plan benefits for the year
ended DECEMBER 31, 1998 is as follows:
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
--------------------------------------------------------------------------
VANGUARD INTERNATIONAL VANGUARD LIFE STRATEGY VANGUARD LIFE STRATEGY
GROWTH FUND CONSERVATIVE GROWTH FUND GROWTH FUND
--------------------------------------------------------------------------
<S> <C> <C> <C>
ADDITIONS
Investment income:
Interest and dividend income, investments $ 19,718.86 $ 3,259.31 $ 59,678.14
Interest income, participant loans - - -
Net realized gain (loss) on sale of investments 15,043.11 201.05 16,510.05
Net unrealized apprec. (deprec.) of investments 93,565.07 3,419.03 200,626.84
--------------------------------------------------------------------------
128,327.04 6,879.39 276,815.03
--------------------------------------------------------------------------
Contributions:
Employer 55,372.16 12,359.06 175,147.21
Participant 156,656.28 30,983.10 456,071.56
Participant loan repayments 6,016.36 - 38,954.35
--------------------------------------------------------------------------
218,044.80 43,342.16 670,173.12
--------------------------------------------------------------------------
Asset transfers in 14,868.93 - 900.98
Other additions/deductions 3,296.18 74.49 353.39
--------------------------------------------------------------------------
TOTAL ADDITIONS 364,536.95 50,296.04 948,242.52
--------------------------------------------------------------------------
DEDUCTIONS
Payment of benefits 9,029.66 380.72 160,786.69
Participant loan withdrawals 19,035.76 8,000.00 31,014.57
Administrative expenses 623.55 156.95 2,354.50
--------------------------------------------------------------------------
TOTAL DEDUCTIONS 28,688.97 8,537.67 194,155.76
--------------------------------------------------------------------------
Net increase (decrease) prior to interfund transfers 335,847.98 41,758.37 754,086.76
Interfund transfers (114,041.92) 21,900.88 (57,274.56)
--------------------------------------------------------------------------
NET INCREASE (DECREASE) 221,806.06 63,659.25 696,812.20
Net assets available for plan benefits:
Beginning of period 780,230.10 19,345.23 1,087,835.54
--------------------------------------------------------------------------
End of period $ 1,002,036.16 $ 83,004.48 $ 1,784,647.74
--------------------------------------------------------------------------
--------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------
VANGUARD LIFE STRATEGY VANGUARD
INCOME FUND LIFE STRATEGY
MODERATE GROWTH
FUND
----------------------------------------------
<S> <C> <C>
ADDITIONS
Investment income:
Interest and dividend income, investments $ 9,456.68 $ 47,353.63
Interest income, participant loans - -
Net realized gain (loss) on sale of investments 7,503.67 8,822.98
Net unrealized apprec. (deprec.) of investments 4,795.96 104,876.25
--------------------------------------------
21,756.31 161,052.86
--------------------------------------------
Contributions:
Employer 2,014.11 72,438.52
Participant 4,697.67 345,174.53
Participant loan repayments - 5,203.35
--------------------------------------------
6,711.78 422,816.40
--------------------------------------------
Asset transfers in - -
Other additions/deductions - 621.68
--------------------------------------------
TOTAL ADDITIONS 28,468.09 584,490.94
--------------------------------------------
Deductions
Payment of benefits 2,989.57 43,448.61
Participant loan withdrawals - 65,308.82
Administrative expenses - 918.85
--------------------------------------------
TOTAL DEDUCTIONS 2,989.57 109,676.28
--------------------------------------------
Net increase (decrease) prior to interfund transfers 25,478.52 474,814.66
Interfund transfers (155,002.50) (6,043.07)
--------------------------------------------
NET INCREASE (DECREASE) (129,523.98) 468,771.59
Net assets available for plan benefits:
Beginning of period 237,874.53 681,211.51
--------------------------------------------
End of period $ 108,350.55 $ 1,149,983.10
--------------------------------------------
--------------------------------------------
</TABLE>
-8-
<PAGE>
GENRAD CHOICE INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 6 - CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND
The allocation of changes in net assets available for plan benefits for the year
ended DECEMBER 31, 1998 is as follows (Continued):
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
------------------------------------------------------------------------
VANGUARD PRIME MONEY VANGUARD PRIMECAP VANGUARD TOTAL BOND
MARKET FUND FUND MARKET INDEX FUND
------------------------------------------------------------------------
<S> <C> <C> <C>
ADDITIONS
Investment income:
Interest and dividend income, investments $ 454,444.46 $ 144,046.91 $ 174,250.72
Interest income, participant loans
- - -
Net realized gain (loss) on sale of investments
- 20,053.38 1,370.86
Net unrealized apprec. (deprec.) of investments
- 522,405.77 39,809.83
------------------------------------------------------------------------
454,444.46 686,506.06 215,431.41
------------------------------------------------------------------------
Contributions:
Employer 120,111.15 214,445.50 56,085.96
Participant 281,480.18 749,643.81 202,134.19
Participant loan repayments 70,126.93 28,574.29 18,709.90
------------------------------------------------------------------------
471,718.26 992,663.60 276,930.05
------------------------------------------------------------------------
Asset transfers in 65,379.27 157,289.29 3,199.94
Other additions/deductions 2,444.22 3,070.37 920.91
------------------------------------------------------------------------
TOTAL ADDITIONS 993,986.21 1,839,529.32 496,482.31
------------------------------------------------------------------------
DEDUCTIONS
Payment of benefits 915,685.44 180,584.24 129,397.19
Participant loan withdrawals 45,762.96 23,341.13 44,496.64
Administrative expenses 4,037.20 2,486.87 889.78
------------------------------------------------------------------------
TOTAL DEDUCTIONS 965,485.60 206,412.24 174,783.61
------------------------------------------------------------------------
Net increase (decrease) prior to interfund transfers 28,500.61 1,633,117.08 321,698.70
Interfund transfers 659,066.72 214,611.59 321,209.74
------------------------------------------------------------------------
NET INCREASE (DECREASE) 687,567.33 1,847,728.67 642,908.44
Net assets available for plan benefits:
Beginning of period 8,185,046.44 2,059,004.90 2,427,240.00
------------------------------------------------------------------------
End of period $ 8,872,613.77 $ 3,906,733.57 $ 3,070,148.44
------------------------------------------------------------------------
------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------
VANGUARD WELLINGTON VANGUARD WINDSOR
FUND II FUND
-------------------------------------------
<S> <C> <C>
ADDITIONS
Investment income:
Interest and dividend income, investments $ 1,486,299.74 $ 1,899,791.23
Interest income, participant loans
- -
Net realized gain (loss) on sale of investments
70,018.01 156,448.39
Net unrealized apprec. (deprec.) of investments
(101,994.42) 548,078.40
------------------------------------------
1,454,323.33 2,604,318.02
------------------------------------------
Contributions:
Employer 251,583.28 407,433.67
Participant 684,936.77 1,189,738.12
Participant loan repayments 91,487.41 150,507.94
------------------------------------------
1,028,007.46 1,747,679.73
------------------------------------------
Asset transfers in 71,911.49 130,641.49
Other additions/deductions 4,915.73 4,994.21
------------------------------------------
TOTAL ADDITIONS 2,559,158.01 4,487,633.45
------------------------------------------
Deductions
Payment of benefits 1,044,020.12 1,545,046.06
Participant loan withdrawals 166,109.10 163,677.37
Administrative expenses 4,770.55 6,058.53
------------------------------------------
TOTAL DEDUCTIONS 1,214,899.77 1,714,781.96
------------------------------------------
Net increase (decrease) prior to interfund transfers 1,344,258.24 2,772,851.49
Interfund transfers (273,593.52) 1,782.60
------------------------------------------
NET INCREASE (DECREASE) 1,070,664.72 2,774,634.09
Net assets available for plan benefits:
Beginning of period 12,239,931.46 16,029,428.93
------------------------------------------
End of period $ 13,310,596.18 $ 18,804,063.02
------------------------------------------
------------------------------------------
</TABLE>
-9-
<PAGE>
GENRAD CHOICE INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 6 - CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND
The allocation of changes in net assets available for plan benefits for the year
ended DECEMBER 31, 1998 is as follows (Continued):
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
-----------------------------------------------
GENRAD COMMON STOCK
FUND PARTICIPANT LOANS TOTAL
------------------------------------------------------------------
<S> <C> <C> <C>
ADDITIONS
Investment income:
Interest and dividend income, investments $ 248.83 $ - $ 4,298,548.51
Interest income, participant loans - 90,332.25 90,332.25
Net realized gain (loss) on sale of investments (313,568.04) - (17,596.54)
Net unrealized apprec. (deprec.) of investments (2,595,907.50) - (1,180,324.77)
------------------------------------------------------------------
(2,909,226.71) 90,332.25 3,190,959.45
-----------------------------------------------------------------
Contributions:
Employer 102,246.39 - 1,469,237.01
Participant 246,636.29 - 4,348,152.50
Participant loan repayments 27,670.35 (437,250.88) -
-----------------------------------------------------------------
376,553.03 (437,250.88) 5,817,389.51
-----------------------------------------------------------------
Asset transfers in 31,177.36 61,714.45 537,083.20
Other additions/deductions (8,944.38) - 11,746.80
-----------------------------------------------------------------
TOTAL ADDITIONS (2,510,440.70) (285,204.18) 9,557,178.96
-----------------------------------------------------------------
DEDUCTIONS
Payment of benefits 183,973.07 27,195.28 4,242,536.65
Participant loan withdrawals - (566,746.35) -
Administrative expenses 1,656.88 - 23,953.66
-----------------------------------------------------------------
TOTAL DEDUCTIONS 185,629.95 (539,551.07) 4,266,490.31
-----------------------------------------------------------------
Net increase (decrease) prior to interfund transfers (2,696,070.65) 254,346.89 5,290,688.65
Interfund transfers (612,615.96) - -
-----------------------------------------------------------------
NET INCREASE (DECREASE) (3,308,686.61) 254,346.89 5,290,688.65
Net assets available for plan benefits:
Beginning of period 6,936,547.44 780,264.38 51,463,960.46
-----------------------------------------------------------------
End of period $ 3,627,860.83 $ 1,034,611.27 $ 56,754,649.11
-----------------------------------------------------------------
-----------------------------------------------------------------
</TABLE>
-10-
<PAGE>
GENRAD CHOICE INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 6 - CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND
The allocation of changes in net assets available for plan benefits
for the year ended DECEMBER 31, 1997 is as follows:
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
-----------------------------------------------------------------------------
VANGUARD INTERNATIONAL VANGUARD LIFE STRATEGY VANGUARD LIFE STRATEGY
GROWTH FUND CONSERVATIVE GROWTH FUND GROWTH FUND
-----------------------------------------------------------------------------
<S> <C> <C> <C>
ADDITIONS
Investment income:
Interest and dividend income, investments $ 32,978.94 $ 1,140.43 $ 41,236.69
Interest income, participant loans - - -
Net realized gain on sale of investments 6,325.45 1,421.76 19,445.19
Net unrealized apprec. (deprec.) of investments (21,788.25) 987.97 102,199.37
----------------------------------------------------------------------
17,516.14 3,550.16 162,881.25
----------------------------------------------------------------------
Contributions:
Employer 49,163.71 3,455.46 96,531.52
Participant 146,353.43 6,910.97 352,582.06
Participant loan repayments 17,599.33 - 35,004.39
----------------------------------------------------------------------
213,116.47 10,366.43 484,117.97
----------------------------------------------------------------------
Asset transfers in 13,332.80 - 5,578.26
----------------------------------------------------------------------
TOTAL ADDITIONS 243,965.41 13,916.59 652,577.48
----------------------------------------------------------------------
DEDUCTIONS
Payment of benefits 7,119.57 39,534.60 190,500.43
Participant loan withdrawals 18,485.43 - 34,203.48
Administrative expenses 538.58 50.00 1,563.31
----------------------------------------------------------------------
TOTAL DEDUCTIONS 26,143.58 39,584.60 226,267.22
----------------------------------------------------------------------
Net increase (decrease) prior to interfund transfers 217,821.83 (25,668.01) 426,310.26
Interfund transfers (78,010.11) - (13,150.50)
----------------------------------------------------------------------
NET INCREASE (DECREASE) 139,811.72 (25,668.01) 413,159.76
Net assets available for plan benefits:
Beginning of period 640,418.38 45,013.24 674,675.78
----------------------------------------------------------------------
End of period $ 780,230.10 $ 19,345.23 $ 1,087,835.54
----------------------------------------------------------------------
-----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------
VANGUARD LIFE STRATEGY VANGUARD
INCOME FUND LIFE STRATEGY
MODERATE GROWTH
FUND
----------------------------------------------
<S> <C> <C>
ADDITIONS
Investment income:
Interest and dividend income, investments $ 8,212.47 $ 29,646.94
Interest income, participant loans - -
Net realized gain on sale of investments 4,139.12 7,737.12
Net unrealized apprec. (deprec.) of investments (1,679.60) 55,381.65
----------------------------------------------
10,671.99 92,765.71
----------------------------------------------
Contributions:
Employer 1,760.96 35,943.45
Participant 6,730.34 94,605.89
Participant loan repayments - 2,929.47
----------------------------------------------
8,491.30 133,478.81
----------------------------------------------
Asset transfers in - 75,754.88
----------------------------------------------
TOTAL ADDITIONS 19,163.29 301,999.40
----------------------------------------------
DEDUCTIONS
Payment of benefits - 23,111.95
Participant loan withdrawals - 3,500.00
Administrative expenses - 508.26
----------------------------------------------
TOTAL DEDUCTIONS - 27,120.21
----------------------------------------------
Net increase (decrease) prior to interfund transfers 19,163.29 274,879.19
Interfund transfers 154,994.43 (27,081.36)
----------------------------------------------
NET INCREASE (DECREASE) 174,157.72 247,797.83
Net assets available for plan benefits:
Beginning of period 63,716.81 433,413.68
----------------------------------------------
End of period $ 237,874.53 $ 681,211.51
----------------------------------------------
----------------------------------------------
</TABLE>
-11-
<PAGE>
GENRAD CHOICE INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 6 - CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND
The allocation of changes in net assets available for plan benefits for the year
ended DECEMBER 31, 1997 is as follows (Continued):
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
------------------------------------------------------------------------
VANGUARD PRIME MONEY VANGUARD PRIMECAP VANGUARD TOTAL BOND
MARKET FUND FUND MARKET INDEX FUND
------------------------------------------------------------------------
<S> <C> <C> <C>
ADDITIONS
Investment income:
Interest and dividend income, investments $ 440,116.06 $ 73,493.18 $ 150,091.06
Interest income, participant loans - - -
Net realized gain on sale of investments - 43,577.83 4,005.08
Net unrealized apprec. (deprec.) of investments - 361,725.21 58,177.22
------------------------------------------------------------------------
440,116.06 478,796.22 212,273.36
------------------------------------------------------------------------
Contributions:
Employer 104,986.40 99,751.75 48,568.56
Participant 298,605.10 325,857.55 134,143.74
Participant loan repayments 48,623.34 30,207.05 21,521.67
------------------------------------------------------------------------
452,214.84 455,816.35 204,233.97
------------------------------------------------------------------------
Asset transfers in 57,783.69 11,697.49 6,297.36
------------------------------------------------------------------------
TOTAL ADDITIONS 950,114.59 946,310.06 422,804.69
------------------------------------------------------------------------
DEDUCTIONS
Payment of benefits 1,126,178.66 208,043.24 236,520.10
Participant loan withdrawals 62,829.56 28,324.43 15,808.64
Administrative expenses 14,673.97 1,468.25 881.34
------------------------------------------------------------------------
TOTAL DEDUCTIONS 1,203,682.19 237,835.92 253,210.08
------------------------------------------------------------------------
Net increase (decrease) prior to interfund transfers (253,567.60) 708,474.14 169,594.61
Interfund transfers (70,600.46) 122,269.39 20,705.41
------------------------------------------------------------------------
NET INCREASE (DECREASE) (324,168.06) 830,743.53 190,300.02
Net assets available for plan benefits:
Beginning of period 8,509,214.50 1,228,261.37 2,236,939.98
------------------------------------------------------------------------
End of period $ 8,185,046.44 $ 2,059,004.90 $ 2,427,240.00
------------------------------------------------------------------------
------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------
VANGUARD WELLINGTON VANGUARD WINDSOR
FUND II FUND
----------------------------------------------
<S> <C> <C>
ADDITIONS
Investment income:
Interest and dividend income, investments $ 1,038,346.63 $ 1,451,329.11
Interest income, participant loans - -
Net realized gain on sale of investments 100,923.66 210,212.55
Net unrealized apprec. (deprec.) of investments 1,160,453.32 2,224,194.54
----------------------------------------------
2,299,723.61 3,885,736.20
----------------------------------------------
Contributions:
Employer 193,048.07 265,211.92
Participant 558,434.02 809,695.01
Participant loan repayments 72,757.51 151,239.34
----------------------------------------------
824,239.60 1,226,146.27
----------------------------------------------
Asset transfers in 16,085.19 103,737.52
----------------------------------------------
TOTAL ADDITIONS 3,140,048.40 5,215,619.99
----------------------------------------------
DEDUCTIONS
Payment of benefits 615,716.22 837,834.05
Participant loan withdrawals 92,056.93 216,351.97
Administrative expenses 4,256.33 5,009.89
----------------------------------------------
TOTAL DEDUCTIONS 712,029.48 1,059,195.91
----------------------------------------------
Net increase (decrease) prior to interfund transfers 2,428,018.92 4,156,424.08
Interfund transfers (102,009.93) (106,039.29)
----------------------------------------------
NET INCREASE (DECREASE) 2,326,008.99 4,050,384.79
Net assets available for plan benefits:
Beginning of period 9,913,922.47 11,979,044.14
----------------------------------------------
End of period $ 12,239,931.46 $ 16,029,428.93
----------------------------------------------
----------------------------------------------
</TABLE>
-12-
<PAGE>
GENRAD CHOICE INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 6 - CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND
The allocation of changes in net assets available for plan benefits for the year
ended DECEMBER 31, 1997 is as follows (Continued):
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
------------------------------------------
GENRAD COMMON STOCK
FUND PARTICIPANT LOANS TOTAL
------------------------------------------------------------------
<S> <C> <C> <C>
ADDITIONS
Investment income:
Interest and dividend income, investments $ - $ - $ 3,266,591.51
Interest income, participant loans - 54,418.88 54,418.88
Net realized gain on sale of investments 112,388.63 - 510,176.39
Net unrealized apprec. (deprec.) of investments 1,758,319.42 - 5,697,970.85
------------------------------------------------------------------
1,870,708.05 54,418.88 9,529,157.63
------------------------------------------------------------------
Contributions:
Employer 79,335.35 - 977,757.15
Participant 230,076.01 - 2,963,994.12
Participant loan repayments 42,065.39 (421,947.49) -
------------------------------------------------------------------
351,476.75 (421,947.49) 3,941,751.27
------------------------------------------------------------------
Asset transfers in 2,881.69 22,409.95 315,558.83
------------------------------------------------------------------
TOTAL ADDITIONS 2,225,066.49 (345,118.66) 13,786,467.73
------------------------------------------------------------------
DEDUCTIONS
Payment of benefits 145,837.95 87,847.37 3,518,244.14
Participant loan withdrawals - (471,560.44) -
Administrative expenses 1,695.07 - 30,645.00
------------------------------------------------------------------
TOTAL DEDUCTIONS 147,533.02 (383,713.07) 3,548,889.14
------------------------------------------------------------------
Net increase (decrease) prior to interfund transfers 2,077,533.47 38,594.41 10,237,578.59
Interfund transfers 98,922.42 - -
------------------------------------------------------------------
NET INCREASE (DECREASE) 2,176,455.89 38,594.41 10,237,578.59
Net assets available for plan benefits:
Beginning of period 4,760,091.55 741,669.97 41,226,381.87
------------------------------------------------------------------
End of period $ 6,936,547.44 $ 780,264.38 $ 51,463,960.46
------------------------------------------------------------------
------------------------------------------------------------------
</TABLE>
-13-
<PAGE>
ADDITIONAL INFORMATION
REQUIRED FOR FORM 5500
<PAGE>
GENRAD CHOICE INVESTMENT PLAN SCHEDULE I
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1998
- --------------------------------------------------------------------------------
GenRad Choice Investment Plan, EIN 04-1360950
Attachment to Form 5500, Line 27(a):
<TABLE>
<CAPTION>
IDENTITY OF ISSUE INVESTMENT TYPE COST
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
* Vanguard International Growth Fund Registered Investment Company $ 901,551.09
* Vanguard LifeStrategy Conservative Growth Fund Registered Investment Company 78,773.84
* Vanguard LifeStrategy Growth Fund Registered Investment Company 1,472,990.42
* Vanguard LifeStrategy Income Fund Registered Investment Company 102,889.62
* Vanguard LifeStrategy Moderate Growth Fund Registered Investment Company 973,258.21
* Vanguard Prime Money Market Fund Registered Investment Company 8,872,613.77
* Vanguard PRIMECAP Fund Registered Investment Company 2,977,759.97
* Vanguard Total Bond Market Index Fund Registered Investment Company 2,992,088.87
* Vanguard Wellington Fund Registered Investment Company 10,988,228.24
* Vanguard Windsor II Fund Registered Investment Company 14,174,551.30
* GenRad, Inc. Common Stock 2,484,416.33
GenRad Choice Investment Plan Participant Loans (6% - 9%) -
------------------------------
Total assets held for investment purposes $ 46,019,121.66
------------------------------
------------------------------
</TABLE>
<TABLE>
<CAPTION>
IDENTITY OF ISSUE INVESTMENT TYPE CURRENT VALUE
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
* Vanguard International Growth Fund Registered Investment Company $ 1,002,036.16
* Vanguard LifeStrategy Conservative Growth Fund Registered Investment Company 83,004.48
* Vanguard LifeStrategy Growth Fund Registered Investment Company 1,784,647.74
* Vanguard LifeStrategy Income Fund Registered Investment Company 108,350.55
* Vanguard LifeStrategy Moderate Growth Fund Registered Investment Company 1,149,983.10
* Vanguard Prime Money Market Fund Registered Investment Company 8,872,613.77
* Vanguard PRIMECAP Fund Registered Investment Company 3,906,733.57
* Vanguard Total Bond Market Index Fund Registered Investment Company 3,070,148.44
* Vanguard Wellington Fund Registered Investment Company 13,310,596.18
* Vanguard Windsor II Fund Registered Investment Company 18,804,063.02
* GenRad, Inc. Common Stock 3,627,860.83
GenRad Choice Investment Plan Participant Loans (6% - 9%) 1,034,611.27
----------------------
Total assets held for investment purposes $ 56,754,649.11
----------------------
----------------------
</TABLE>
* Party in Interest
-14-
<PAGE>
GENRAD CHOICE INVESTMENT PLAN SCHEDULE II
SCHEDULE OF REPORTABLE TRANSACTIONS *
YEAR ENDED DECEMBER 31, 1998
- --------------------------------------------------------------------------------
GenRad Choice Investment Plan, EIN 04-1360950
Attachment to Form 5500, Line 27(d):
<TABLE>
<CAPTION>
IDENTITY OF PARTY DESCRIPTION OF ASSET (INCLUDE INTEREST
INVOLVED RATE AND MATURITY IN THE CASE OF A LOAN) PURCHASE PRICE SELLING PRICE
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
The Vanguard Group Vanguard Prime Money Market Fund $ 2,930,243.62
The Vanguard Group Vanguard Prime Money Market Fund $ 2,213,843.51
The Vanguard Group Vanguard PRIMECAP Fund 1,959,491.19
The Vanguard Group Vanguard PRIMECAP Fund 629,164.35
The Vanguard Group Vanguard Wellington Fund 2,894,014.15
The Vanguard Group Vanguard Wellington Fund 1,739,684.63
The Vanguard Group Vanguard Windsor II Fund 5,006,960.98
The Vanguard Group Vanguard Windsor II Fund 2,854,400.67
The Vanguard Group GenRad Common Stock Fund 1,383,939.50
The Vanguard Group GenRad Common Stock Fund 1,752,328.09
</TABLE>
<TABLE>
<CAPTION>
IDENTITY OF PARTY DESCRIPTION OF ASSET (INCLUDE INTEREST HISTORICAL COST OF CURRENT VALUE OF ASSET HISTORICAL GAIN
INVOLVED RATE AND MATURITY IN THE CASE OF A LOAN) ASSET ON TRANSACTION DATE (LOSS)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
The Vanguard Group Vanguard Prime Money Market Fund $ 2,930,243.62
The Vanguard Group Vanguard Prime Money Market Fund $ 2,213,843.51 2,213,843.51 $ -
The Vanguard Group Vanguard PRIMECAP Fund 1,959,491.19
The Vanguard Group Vanguard PRIMECAP Fund 551,098.11 629,164.35 78,066.24
The Vanguard Group Vanguard Wellington Fund 2,894,014.15
The Vanguard Group Vanguard Wellington Fund 1,359,516.30 1,739,684.63 380,168.33
The Vanguard Group Vanguard Windsor II Fund 5,006,960.98
The Vanguard Group Vanguard Windsor II Fund 2,152,436.33 2,854,400.67 701,964.34
The Vanguard Group GenRad Common Stock Fund 1,383,939.50
The Vanguard Group GenRad Common Stock Fund 1,153,071.06 1,752,328.09 599,257.03
</TABLE>
* Transactions or a series of transactions in excess of 5% of the current value
of the Plan's assets as of the beginning of the plan year as defined in
section 2520.103-6 of the Department of Labor Rules and Regulations for
Reporting and Disclosure under ERISA.
-15-
<PAGE>
Exhibit 23.1
Consent of Independent Accountants
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (No. 333-69049) of GenRad, Inc. of our report dated
June 23, 1999 appearing in Appendix 1 of this Form 11-K.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
June 23, 1999
