<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11 - K
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1998
----------------------------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from to
------------------ -------------------
Commission file number 000-14824 [Plexus Corp.]
-----------------------------------------------
A. Full title of the plan and the address of the plan, if different from that of
the issuer named below:
PLEXUS CORP. EMPLOYEE STOCK SAVINGS PLAN
B. Name of issuer of the securities held pursuant to the plan and the address of
its principal executive office:
PLEXUS CORP.
55 JEWELERS PARK DRIVE
NEENAH, WISCONSIN 54956
<PAGE> 2
PLEXUS CORP.
EMPLOYEE STOCK SAVINGS PLAN
REPORT ON AUDITS OF FINANCIAL STATEMENTS
AS OF DECEMBER 31, 1998 AND 1997
AND FOR THE YEAR ENDED DECEMBER 31, 1998
<PAGE> 3
REPORT OF INDEPENDENT ACCOUNTANTS
To the Participants and Administrator
of the Plexus Corp. Employee Stock Savings Plan
In our opinion, the accompanying statements of net assets available for benefits
and the related statement of changes in net assets available for benefits
present fairly, in all material respects, the net assets available for benefits
of the Plexus Corp. Employee Stock Savings Plan (the "Plan") as of December 31,
1998 and 1997, and the changes in net assets available for benefits for the year
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 performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information included in
the schedules of assets held for investment purposes and reportable transactions
is presented for purposes of additional analysis and is not a required part of
the basic financial statements but is additional information required by the
Employee Retirement Income Security Act of 1974. The fund information in the
statements of net assets available for benefits and the statement 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 schedules and the
fund information have been subjected to the auditing procedures applied in the
audit 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.
Milwaukee, Wisconsin
April 29, 1999
<PAGE> 4
PLEXUS CORP.
EMPLOYEE STOCK SAVINGS PLAN
INDEX TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Page
----
<S> <C>
Report of Independent Accountants 1
Statements of Net Assets Available for Benefits
with Fund Information as of December 31, 1998 and 1997 2
Statement of Changes in Net Assets Available for Benefits
with Fund Information for the year ended December 31, 1998
Notes to Financial Statements 4-6
Schedules Required by the Department of Labor Rules and Regulations: *
Form 5500, Item 27a, Schedule of Assets Held for Investment
Purposes as of December 31, 1998 7
Form 5500, Item 27d, Schedule of Reportable Transactions for
the year ended December 31, 1998 8
</TABLE>
* Other schedules required by the Department of Labor have been omitted because
they are not applicable.
<PAGE> 5
PLEXUS CORP. EMPLOYEE STOCK SAVINGS PLAN
STATEMENT OF CHANGES NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1998
- --------------------------------------------------------------------------------
1998
Participant Directed
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Oppenheimer
Employer Ivy Money Quest Munder
Unitized Market Ivy Bond Opportunity Index 500
Stock Fund Fund Fund Value Fund Fund
---------- ---- ---- ---------- ----
<S> <C> <C> <C> <C> <C>
Investments, at fair value $27,167,894 $ 2,046,023 $ 625,190 $ 3,517,266 $ 3,928,634
----------- ----------- ----------- ----------- -----------
Receivables:
Employer's contribution 43,294 -- -- -- --
Participants' contributions 15,323 2,555 3,503 17,010 19,188
----------- ----------- ----------- ----------- -----------
Total receivables 58,617 2,555 3,503 17,010 19,188
----------- ----------- ----------- ----------- -----------
Net assets available for
benefits $27,226,511 $ 2,048,578 $ 628,693 $ 3,534,276 $ 3,947,822
=========== =========== =========== =========== ===========
<CAPTION>
EuroPacific AIM Seligman
AIM Value Growth Constellation Frontier
Fund Fund Fund Fund Total
---- ---- ---- ---- -----
<S> <C> <C> <C> <C> <C>
Investments, at fair value $ 3,580,541 $ 2,009,632 $ 2,930,476 $ 1,810,754 $47,616,410
----------- ----------- ----------- ----------- -----------
Receivables:
Employer's contribution -- -- -- -- 43,294
Participants' contributions 19,699 13,328 19,441 13,378 123,425
----------- ----------- ----------- ----------- -----------
Total receivables 19,699 13,328 19,441 13,378 166,719
----------- ----------- ----------- ----------- -----------
Net assets available for
benefits $ 3,600,240 $ 2,022,960 $ 2,949,917 $ 1,824,132 $47,783,129
=========== =========== =========== =========== ===========
</TABLE>
1997
Participant Directed
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Oppenheimer
Employer American Cash Quest Vanguard
Unitized Management MFS Bond Opportunity Index 500
Stock Fund Fund Fund Value Fund Fund
---------- ---- ---- ---------- ----
<S> <C> <C> <C> <C> <C>
Investments, at fair value $13,596,121 $ 479,825 $ 350,036 $ 2,703,277 $ 2,493,480
----------- ----------- ----------- ----------- -----------
Receivables:
Employer's contribution 37,431 -- -- -- --
Participants' contributions 15,671 1,671 3,114 15,505 14,743
----------- ----------- ----------- ----------- -----------
Total receivables 53,102 1,671 3,114 15,505 14,743
----------- ----------- ----------- ----------- -----------
Net assets available for
benefits $13,649,223 $ 481,496 $ 353,150 $ 2,718,782 $ 2,508,223
=========== =========== =========== =========== ===========
<CAPTION>
EuroPacific AIM Seligman
AIM Value Growth Constellation Frontier
Fund Fund Fund Fund Total
---- ---- ---- ---- -----
<S> <C> <C> <C> <C> <C>
Investments, at fair value $ 1,948,501 $ 1,307,302 $ 1,789,560 $ 1,312,679 $25,980,781
----------- ----------- ----------- ----------- -----------
Receivables:
Employer's contribution -- -- -- -- 37,431
Participants' contributions 16,657 12,150 18,276 12,928 110,715
----------- ----------- ----------- ----------- -----------
Total receivables 16,657 12,150 18,276 12,928 148,146
----------- ----------- ----------- ----------- -----------
Net assets available for
benefits $ 1,965,158 $ 1,319,452 $ 1,807,836 $ 1,325,607 $26,128,927
=========== =========== =========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
-2-
<PAGE> 6
PLEXUS CORP. EMPLOYEE STOCK SAVINGS PLAN
STATEMENT OF CHANGES NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1998
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Participant Directed
-----------------------------------------------------------------------------------
Oppenheimer
Employee Ivy Money American Cash MFS Quest Munder
Unitized Market Management Ivy Bond Bond Opportunity Index 500
Stock Fund Fund Fund Fund Fund Value Fund Fund
----------- --------- ------------- ------- ---- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions
Additions to net assets attributed to:
Investment income (loss):
Net appreciation (depreciation)
in fair value of investments $16,259,513 $ -- $ -- $ (7,436) $ 10,235 $ 154,698 $ 412,987
Interest -- 35,005 250,423 -- -- -- --
----------- ---------- -------- -------- -------- ---------- ----------
16,259,513 35,005 250,423 (7,436) 10,235 154,698 412,987
Contributions:
Participants' 467,301 57,209 2,285 86,945 2,180 443,944 455,134
Employer's 1,143,393 -- 887 -- 671 2,858 --
----------- ---------- -------- -------- -------- ---------- ----------
1,610,694 57,209 3,172 86,945 2,851 446,802 455,134
----------- ---------- -------- -------- -------- ---------- ----------
Total additions 17,870,207 92,214 253,595 79,509 13,086 601,500 868,121
----------- ---------- -------- -------- -------- ---------- ----------
Deductions
Deductions from net assets attributed to:
Benefits paid to participants (670,639) (227,099) (316) (12,078) (2,109) (89,231) (98,576)
----------- ---------- -------- -------- -------- ---------- ----------
Net increase (decrease) prior to interfund
transfers 17,199,568 (134,885) 253,280 67,430 10,977 512,269 769,545
Interfund transfers (3,622,280) 2,183,463 (734,776) 561,263 (364,127) 303,225 3,178,277
----------- ---------- -------- -------- -------- ---------- ----------
Net increase (decrease) 13,577,288 2,048,578 (481,496) 628,693 (353,150) 815,494 3,947,822
Net asset available for benefits:
Beginning of year 13,649,223 -- 481,496 -- 353,150 2,718,782 --
----------- ---------- -------- -------- -------- ---------- ----------
End of year $27,226,511 $2,048,578 $ -- $628,693 $ -- $3,534,276 $3,947,822
=========== ========== ======== ======== ======== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
-----------------------------------------------------------------------------
Vanguard EuroPacific AIM Seligman
Index 500 AIM Value Growth Constellation Frontier
Fund Fund Fund Fund Fund Total
--------- --------- ----------- ------------- -------- -----
<S> <C> <C> <C> <C> <C> <C>
Additions
Additions to net assets attributed to:
Investment income (loss):
Net appreciation (depreciation)
in fair value of investments $ 341,793 $ 729,221 $ 176,371 $ 378,524 $ (14,553) $18,441,353
Interest -- -- -- -- -- 285,428
---------- ---------- ---------- ---------- ---------- -----------
341,793 729,221 176,371 378,524 (14,553) 18,726,781
Contributions:
Participants' 20,142 504,500 341,992 494,072 336,294 3,211,998
Employer's 2,540 2,735 1,896 2,357 1,885 1,159,222
---------- ---------- ---------- ---------- ---------- -----------
22,682 507,235 343,888 496,429 338,179 4,371,220
---------- ---------- ---------- ---------- ---------- -----------
Total additions 364,475 1,236,456 520,259 874,953 323,626 23,098,001
---------- ---------- ---------- ---------- ---------- -----------
Deductions
Deductions from net assets attributed to:
Benefits paid to participants (135) (101,919) (57,913) (101,114) (82,670) (1,443,799)
---------- ---------- ---------- ---------- ---------- -----------
Net increase (decrease) prior to interfund
transfers 364,340 1,134,537 462,346 773,840 240,955 21,654,202
Interfund transfers (2,872,563) 500,545 241,162 368,241 257,570 --
---------- ---------- ---------- ---------- ---------- -----------
Net increase (decrease) (2,508,223) 1,635,082 703,508 1,142,081 498,525 21,654,202
Net asset available for benefits:
Beginning of year 2,508,223 1,965,158 1,319,452 1,807,836 1,325,607 26,128,927
---------- ---------- ---------- ---------- ---------- -----------
End of year $ -- $3,600,240 $2,022,960 $2,949,917 $1,824,132 $47,783,129
========== ========== ========== ========== ========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 3 -
<PAGE> 7
PLEXUS CORP. EMPLOYEE STOCK SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 AND 1997
- --------------------------------------------------------------------------------
1. DESCRIPTION OF PLAN
The following description of the Plexus Corp. Employee Stock Savings Plan
(the "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, effective January 1, 1989, is a contributory defined
contribution plan covering all employees of Plexus Corp. (the "Company")
who have completed 90 days of service. The Plan is subject to the
provisions of the Employee Retirement Income Security Act of 1974
("ERISA").
CONTRIBUTIONS
Employee pre-tax contributions are based on voluntary written elections
by the participants directing the Company to defer a stated amount from
the participant's compensation. Participants may elect to defer up to 15%
of their annual compensation. The Company will make a matching
contribution on behalf of a participant equal to 100% of the first 2.5%
of the participant's elective deferrals for participants who have
completed one year of service. Substantially all Company matching
contributions are allocated to the Employer Stock Fund. Contributions are
limited by Section 401(k) of the Internal Revenue Code.
INVESTMENT ALTERNATIVES
Plan participants may direct contributions and their account balances in
1% increments in any of nine investment options maintained by Riggs
National Bank of Washington, D.C., the trustee of the Plan. The
investment funds available at December 31, 1998 were:
Ivy Money Market Fund - A mutual fund which seeks to obtain as high of a
level of current income as is consistent with the preservation of capital
and liquidity by investing in high-quality, short-term securities.
Ivy Bond Fund - A mutual fund which seeks a high level of current income
by investing primarily in (i) investment grade corporate bonds (those
rated Aaa, Aa, A or Baa by Moody's Investors Services, Inc. ("Moody's")
or AAA, AA, A or BBB by Standard & Poor's Corporation ("S&P"), or, if
unrated, are considered by the fund manager to be of comparable quality)
and (ii) U.S. Government Securities (including mortgage-backed securities
issued by U.S. Government agencies or instrumentalities) that mature in
more than 13 months.
Oppenheimer Quest Opportunity Value Fund - A mutual fund which seeks
capital appreciation through investment securities of companies believed
to be undervalued in the marketplace. This fund invests primarily in
common stock, convertible securities and fixed-income securities.
Munder Index 500 Fund - A mutual fund which invests in equity securities
which include common stocks, preferred stocks, warrants and other
securities convertible into common stocks, including convertible bonds
and convertible preferred stock.
AIM Value Fund - A mutual fund which seeks to achieve long-term growth of
capital by investing primarily in equity securities judged by the fund to
be undervalued relative to the appraisal of the companies' current or
projected earnings or relative to the equity market in general.
-4-
<PAGE> 8
PLEXUS CORP. EMPLOYEE STOCK SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS, CONTINUED
DECEMBER 31, 1998 AND 1997
- --------------------------------------------------------------------------------
1. DESCRIPTION OF PLAN, CONTINUED
EuroPacific Growth Fund - A mutual fund which seeks to achieve
long-term growth of capital by investing in securities of issuers
located outside the U.S. The fund invests in common stock of both
small and large companies of major world markets, as well as in
smaller developing countries.
AIM Constellation Fund - A mutual fund which seeks to achieve capital
appreciation by investing principally in common stocks with emphasis
on medium-sized and smaller emerging growth companies.
Seligman Frontier Fund - A mutual fund which seeks to achieve capital
appreciation through investing in common stocks of small-sized to
medium-sized companies with annual revenues of $400 million or less.
The fund may also invest in U.S. government securities, corporate debt
securities rated AA or higher, prime commercial paper, and
certificates of deposit issued by the 100 largest domestic and 50
largest foreign banks.
Employer Unitized Stock Fund - Investment which consists primarily of
the common stock of the Company which is traded on the NASDAQ
exchange.
Participants may change their investment options on a daily basis.
PARTICIPANT ACCOUNTS AND ALLOCATIONS
Each participant's account is credited with the participant's
contributions and allocations of Company contributions and plan
earnings. Allocations of plan earnings are based on participant account
balances in relation to total fund account balances, as defined by the
plan document. Participants in the Employer Stock Fund are allocated an
undivided interest in the shares held by the fund. At December 31, 1998
and 1997, the Employer Stock Fund held 800,527 and 867,897 shares of
Plexus Corp. common stock valued at $33.9375 and $15.6655 per share,
respectively.
VESTING AND DISTRIBUTIONS
Participants immediately vest in all contributions made to the Plan.
Participant accounts are distributable in the form of a lump sum payment
of cash or in whole shares of Company securities as elected by the
participant upon a participant's retirement, termination of employment,
death, disability, financial hardship or attainment of age 59-1/2. In
addition, participant accounts can be rolled over into an individual
retirement account ("IRA") or another qualified defined contribution
plan. Participant distributions may not be deferred past April 1 of the
calendar year following the year in which the participant attains age
70-1/2. Forfeitures of unclaimed distributions are used to reduce
Company matching contributions.
-5-
<PAGE> 9
PLEXUS CORP. EMPLOYEE STOCK SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS, CONTINUED
DECEMBER 31, 1998 AND 1997
- --------------------------------------------------------------------------------
2. SUMMARY OF ACCOUNTING POLICIES
ACCOUNTING METHOD
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, liabilities, and
changes therein, and disclosure of contingent assets and liabilities.
Actual results could differ from those estimates.
INVESTMENT VALUATION AND INCOME RECOGNITION
Investments are stated at fair value based on the quoted asset values on
the last business day of the plan year. Since the Plan's assets are
reported at fair value in the financial statements, the statement of
changes in net assets available for benefits reflects both realized gains
and losses and unrealized appreciation and depreciation of plan assets.
Interest income is recognized when earned.
ADMINISTRATIVE EXPENSES
Certain expenses incurred in the administration of the Plan are paid by
the Company and are not reflected within these financial statements.
3. TAX STATUS
The Internal Revenue Service has determined and informed the Company by a
letter dated May 6, 1998, that the Plan is designed in accordance with
applicable sections of the Internal Revenue Code.
4. 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.
5. EMPLOYER UNITIZED STOCK FUND
The Employer Unitized Stock Fund is accounted for on a unitary basis. At
December 31, 1998, there were 1,112,207.572 units in the fund with a unit
value of $24.427 per unit. At December 31, 1997, there were 1,227,640.700
units in the fund with a unit value of $11.075 per unit.
-6-
<PAGE> 10
<TABLE>
<CAPTION>
PLEXUS CORP. EMPLOYEE STOCK SAVINGS PLAN
FORM 5500, ITEM 27A, SCHEDULE OF ASSETS HELD FOR INVESTMENT
PURPOSES
DECEMBER 31, 1998
- -------------------------------------------------------------------------------------------------------------------------------
Identity of Issuer,
Borrower, Lessor Current
or Similar Party Description of Investment Cost Value
- ---------------------------------------------- ----------------------------------- ----------------------- --------------------
<S> <C> <C> <C>
Employer Unitized Stock Fund Plexus Corp. Common Stock (*) $ 8,364,289 $ 27,167,894
Ivy Money Market Fund Mutual Fund 2,046,023 2,046,023
Ivy Bond Fund Mutual Fund 649,022 625,190
Oppenheimer Quest Opportunity Value Fund Mutual Fund 3,350,064 3,517,266
Munder Index 500 Fund Mutual Fund 3,588,793 3,928,634
AIM Value Fund Mutual Fund 3,150,698 3,580,541
EuroPacific Growth Fund Mutual Fund 2,006,870 2,009,632
AIM Constellation Fund Mutual Fund 2,668,605 2,930,476
Seligman Frontier Fund Mutual Fund 1,831,076 1,810,754
---------------------
$ 47,616,410
=====================
</TABLE>
* Party-in-interest transactions, which are exempt from prohibited transaction
rules under Section 408(b) of ERISA.
-7-
<PAGE> 11
PLEXUS CORP. EMPLOYEE STOCK SAVINGS PLAN
FORM 5500, ITEM 27D, SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Expense Current Value
incurred of asset on
Identity of Issue, Purchase Selling with Cost of Transaction
lessor or similar party Description of Asset Price Price transaction Asset Date
- ------------------------- ---------------------- --------------- -------------- ------------ ------------ --------------
<S> <C> <C> <C> <C> <C> <C>
Employer Unitized Stock Fund
429 Purchases 2,868,472 -- na 2,868,472 2,868,472
652 Sales -- 5,472,601 na 1,199,460 5,472,601
Ivy Money Market Fund
191 Purchases 3,704,578 -- na 3,704,578 3,704,578
249 Sales -- 1,658,548 na 1,658,548 1,658,548
Oppenheimer Quest Opportunity Value Fund
313 Purchases 1,210,896 -- na 1,210,896 1,210,896
350 Sales -- 405,856 na 302,350 405,856
Munder Index 500 Fund
305 Purchases 4,230,904 -- na 4,230,904 4,230,904
341 Sales -- 652,340 na 642,090 652,340
AIM Value Fund
386 Purchases 1,530,276 -- na 1,530,276 1,530,276
331 Sales -- 403,566 na 322,645 403,566
EuroPacific Growth Fund
385 Purchases 1,176,038 -- na 1,176,038 1,176,038
334 Sales -- 192,933 na 178,628 192,933
AIM Constellation Fund
361 Purchases $ 1,200,809 $ -- na $ 1,200,809 $ 1,200,809
339 Sales -- 405,804 na 378,247 405,804
Vanguard Index 500 Fund
88 Purchases 149,812 -- na 149,812 149,812
69 Sales -- 2,978,774 na 2,188,042 2,978,774
<CAPTION>
Identity of Issue, Net
lessor or similar party Gain (loss)
- ------------------------- -------------
<S> <C>
Employer Unitized Stock Fund
--
4,273,141
Ivy Money Market Fund
--
--
Oppenheimer Quest Opportunity Value Fund
--
103,506
Munder Index 500 Fund
--
10,250
AIM Value Fund
--
80,921
EuroPacific Growth Fund
--
14,305
AIM Constellation Fund
$ --
27,557
Vanguard Index 500 Fund
--
790,732
</TABLE>
-8-
<PAGE> 12
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934,
the trustees (or other persons who administer the employee benefit plan) have
duly caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
PLEXUS CORP. EMPLOYEE STOCK SAVINGS PLAN
Date: June 25, 1999 __________________
Joseph D. Kaufman
Employee Stock Savings Plan Fiduciary
Committee Member
<PAGE> 1
EXHIBIT 23
[PRICEWATERHOUSECOOPERS LLP LETTERHEAD]
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (File No. 33-23490 and File No. 333-06469) of Plexus Corp.
of our report dated April 29, 1999 appearing on page 1 of the Financial
Statements of Plexus Corp. Employee Stock Savings Plan included in this Annual
Report on Form 11-K.
/s/ PricewaterhouseCoopers LLP
Milwaukee, Wisconsin
June 25, 1999
