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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
[ X ] Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934 for the 13 weeks ended
November 26, 1994, or,
[ ] Transition report pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934 for the transition period
from ________________ to _____________________.
Commission File Number 1-4837
TEKTRONIX, INC.
(Exact name of registrant as specified in its charter)
OREGON 93-0343990
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
26600 S.W. PARKWAY
WILSONVILLE, OREGON 97070-1000
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (503) 627-7111
NOT APPLICABLE
(Former name, former address and former fiscal year, if changed since
last report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes ___X___ No______
AT DECEMBER 28, 1994 THERE WERE 30,804,860 COMMON SHARES OF
TEKTRONIX, INC. OUTSTANDING.
(Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date.)
<PAGE>
TEKTRONIX, INC. AND SUBSIDIARIES
- --------------------------------
INDEX
- -----
PAGE NO.
--------
Financial Statements:
Condensed Consolidated Balance Sheets - 2
November 26, 1994 and May 28, 1994
Consolidated Statements of Operations - 3
for the Thirteen Weeks Ended November 26, 1994
and the Thirteen Weeks Ended November 27, 1993
for the Twenty-Six Weeks Ended November 26, 1994
and the Twenty-Six Weeks Ended November 27, 1993
Condensed Consolidated Statements of Cash Flows - 4
for the Twenty-Six Weeks Ended November 26, 1994
and the Twenty-Six Weeks Ended November 27, 1993
Notes to Condensed Consolidated Financial Statements 5
Management's Discussion and Analysis of Financial 6
Condition and Results of Operations
Part II. Other Information 13
Signatures 14
1
<PAGE>
<TABLE>
<CAPTION>
TEKTRONIX, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
Nov. 26, May 28,
(In thousands) 1994 1994
- -------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 36,770 $ 42,919
Accounts receivable - net 248,559 267,405
Inventories 201,631 171,267
Other current assets 58,682 59,054
---------- ----------
Total current assets 545,642 540,645
Property, plant, and equipment 600,550 653,709
Accumulated depreciation and amortization (379,895) (430,387)
---------- ----------
Property, plant, and equipment - net 220,655 223,322
Property held for sale 35,428 39,776
Deferred tax assets 67,484 79,552
Other long-term assets 167,746 107,854
---------- ----------
Total assets $1,036,955 $ 991,149
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt $ 24,529 $ 17,084
Accounts payable 148,247 161,757
Accrued compensation 66,728 78,877
Deferred revenue 17,656 18,124
---------- ----------
Total current liabilities 257,160 275,842
Long-term debt 103,652 104,146
Other long-term liabilities 145,360 141,672
Shareholders' equity:
Common stock 196,212 180,883
Retained earnings 261,019 235,795
Currency adjustment 58,251 52,811
Unrealized holding gains on certain
marketable equity securities 15,301 --
---------- ----------
Total shareholders' equity 530,783 469,489
---------- ----------
Total liabilities and shareholders' equity $1,036,955 $ 991,149
========== ==========
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
financial statements.
2
<PAGE>
<TABLE>
<CAPTION>
TEKTRONIX, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
13 weeks to 13 weeks to 26 weeks to 26 weeks to
Nov. 26, Nov. 27, Nov. 26, Nov. 27,
(In thousands except for per share amounts) 1994 1993 1994 1993
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net sales $ 348,411 $ 317,165 $ 661,139 $ 607,235
Operating costs and expenses:
Cost of sales 188,866 171,951 350,115 326,152
Research and development 40,337 37,105 81,643 73,237
Selling, general, and administrative 93,335 88,703 180,081 172,635
---------- ---------- ---------- ----------
Total operating costs and expenses 322,538 297,759 611,839 572,024
Equity in business ventures net
earnings (losses) 1,007 (299) 642 (1,416)
---------- --------- ---------- ----------
Operating income 26,880 19,107 49,942 33,795
Other expense - net 2,054 1,750 3,507 5,143
---------- ---------- ---------- ----------
Earnings before taxes 24,826 17,357 46,435 28,652
Income taxes 6,454 5,902 12,073 7,466
---------- --------- ---------- ----------
Net earnings $ 18,372 $ 11,455 $ 34,362 $ 21,186
Earnings per share $ 0.60 $ 0.37 $ 1.13 $ 0.69
Dividends per share 0.15 0.15 0.30 0.30
Average shares outstanding 30,537 30,608 30,380 30,558
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
financial statements.
3
<PAGE>
<TABLE>
<CAPTION>
TEKTRONIX, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
26 weeks to 26 weeks to
Nov. 26, Nov. 27,
(In thousands) 1994 1993
- -------------------------------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Earnings $ 34,362 $ 21,186
Adjustments to reconcile net earnings to cash
from operating activities:
Depreciation expense 20,268 27,623
Deferred tax assets 1,847 41
Accounts receivable 21,977 16,988
Inventories (28,208) (12,774)
Other current assets 1,084 9,087
Accounts payable (17,740) (21,573)
Accrued compensation (12,977) (26,636)
Other assets (46,260) (4,344)
Other-net 1,022 5,317
---------- ----------
Net cash provided
(used) by operating activities (24,625) 14,915
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property, plant, and equipment (41,269) (27,072)
Proceeds from sale of assets 32,124 6,505
Proceeds from sale of investments 18,832 9,378
---------- ----------
Net cash provided (used) by investing activities 9,687 (11,189)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in short-term debt 7,081 (26,917)
Issuance of long-term debt -- 100,000
Repayment of long-term debt (566) (70,039)
Issuance of common stock 19,419 675
Repurchase of common stock (8,382) --
Dividends (9,138) (9,162)
---------- ----------
Net cash provided (used) by financing activities 8,414 (5,443)
Effect of exchange rate changes 375 (759)
---------- ----------
Decrease in cash and cash equivalents (6,149) (2,476)
Cash and cash equivalents at beginning of year 42,919 30,004
---------- ----------
Cash and cash equivalents at end of quarter $ 36,770 $ 27,528
========== ==========
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS:
Income taxes paid $ 4,803 $ 2,632
Interest paid 6,224 2,339
NON-CASH INVESTING ACTIVITIES:
Fair value adjustment to securities available-for-sale 25,502 --
Income tax effect related to fair value adjustment 10,201 --
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
financial statements.
4
<PAGE>
TEKTRONIX, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
BASIS OF PRESENTATION
The condensed consolidated financial statements and notes have
been prepared by the Company without audit. Certain information and
footnote disclosures normally included in annual financial statements,
prepared in accordance with generally accepted accounting principles,
have been condensed or omitted. Management believes that the
condensed statements include all necessary adjustments (which are of a
normal and recurring nature, except for the adjustment to deferred tax
assets described below under 'Income Taxes') and are adequate to
present financial position, results of operations and cash flows for
the interim periods. The condensed information should be read in
conjunction with the financial statements and notes incorporated by
reference in the Company's latest annual report on Form 10-K.
INVENTORIES
<TABLE>
<CAPTION>
Inventories consisted of:
Nov. 26, May 28,
(In thousands) 1994 1994
- -------------------------------------------------------------------------------------------
<S> <C> <C>
Materials and work in process $ 105,134 $ 89,341
Finished goods 96,497 81,926
---------- ----------
Inventories $ 201,631 $ 171,267
========== ==========
</TABLE>
INVESTMENTS
At the beginning of the year, the Company adopted SFAS No. 115,
Accounting for Certain Investments in Debt and Equity Securities.
SFAS No. 115 supersedes SFAS No. 12 which generally required
investments in marketable equity securities to be carried at the lower
of aggregate market or amortized cost. Under SFAS No. 115, the
Company now classifies its minority equity investments in certain
marketable securities as available-for-sale and reports them at fair
value in the consolidated balance sheet. The aggregate fair value of
these investments at November 26, 1994 was $29.7 million. The
unrealized gain of $25.5 million, net of the related deferred income
tax effect of $10.2 million, is reported as a separate component of
shareholders' equity.
SHORT-TERM AND LONG-TERM DEBT
Subsequent to the end of the quarter ending November 26, 1994,
the Company extended the $150.0 million revolving credit agreement
with Morgan Guaranty Trust Company of New York as agent from a
maturity date of March 10, 1996 to December 1, 1998.
5
<PAGE>
INCOME TAXES
<TABLE>
<CAPTION>
The provision for income taxes consisted of:
13 weeks to 13 weeks to 26 weeks to 26 weeks to
Nov. 26, Nov. 27, Nov. 26, Nov. 27,
(In thousands) 1994 1993 1994 1993
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
United States $ 1,908 $ 4,957 $ 3,864 $ 5,402
State 477 735 966 1,350
Foreign 4,069 210 7,243 714
---------- ---------- ---------- ----------
Income taxes $ 6,454 $ 5,902 $ 12,073 $ 7,466
========== ========== ========== ==========
The provision for income taxes was calculated at estimated annual
effective rates of 26% and 34% ,respectively, for the quarters ended
November 26, 1994 and November 27, 1993. The provision for the 26
weeks ended November 27, 1993 was reduced by a first quarter gain of
$2.3 million on recalculation of deferred income tax benefits,
primarily as a result of the enactment of federal tax legislation
increasing the corporate income tax rate from 34% to 35%.
CONTINGENCIES
The Company has reported on certain claims asserted by Jerome J.
Lemelson in Item 3., Legal Proceedings, of its Annual Report on Form
10-K for the fiscal year ended May 28, 1994. The Company believes
that ultimate resolution of these claims will not have a material
adverse effect on its financial position or results of operations.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Financial Condition
The Company's financial condition is strong. Cash flow from
operating activities and borrowing capacity from existing lines of
credit are sufficient to meet current and anticipated future needs.
At the end of the second quarter (November 26, 1994), the Company
maintained bank credit facilities totaling $305.6 million, of which
$282.3 million was unused. The unused facilities include $132.3
million in lines of credit and $150.0 million under a revolving credit
agreement from United States and foreign banks.
6
<PAGE>
Current assets increased by $5.0 million from the prior year end,
May 28, 1994, due to an increase in inventories, partly offset by
reductions in cash and accounts receivable. Accounts receivable
declined by $18.8 million because of the lower average weekly sales in
the second quarter compared to the prior year's fourth quarter.
Inventories increased by $30.4 million during the first six months as
a result of the Company's preparation to introduce a significant
number of new products including new color printers and oscilloscopes
and the normal seasonal increase in inventories.
Net property, plant and equipment declined by $2.6 million as
depreciation and dispositions, including the divestiture of the
Circuit Board Division, exceeded new capital additions. Long-term
deferred tax assets decreased by $12.1 million primarily due to the
tax impact from recognition of unrealized holding gains on investments
under SFAS 115, Accounting for Certain Investments in Debt and Equity
Securities, discussed further below under other long-term assets.
Other long-term assets increased by $59.8 million as a result of
the Company's investment in equity and notes of Merix Corporation
(formerly the Circuit Board Division) and the accounting for certain
investments in accordance with SFAS 115. Under SFAS 115, certain
investments in marketable securities are classified as available for
sale and reported at fair value. The adjustment to fair value added
$25.5 million to other long term assets, and the unrealized gains,
less deferred taxes, are reported in unrealized holding gains as a
separate component of shareholders' equity. The Company accounts for
its investment in Merix Corporation on the equity method with the
earnings impact included in equity in business ventures net earnings
(losses) in the consolidated statements of operations. The Company
also recorded several long-term receivables on sales of real estate
and licensing of technologies in the current year.
7
<PAGE>
Current liabilities declined by $18.7 million. Short-term debt
increased $7.4 million. Accounts payable decreased $13.5 million, and
accrued compensation decreased $12.2 million, due to the timing of
some trade payables and restructuring charges, the payment of year-end
accruals for incentives and commissions, the payment of employee
severance charged against restructuring reserves and lower accrual
requirements because of the disposition of non-strategic businesses.
Shareholders' equity increased by $61.3 million due
primarily to earnings net of dividends, the addition of unrealized
holding gains in accordance with SFAS 115 and the exercise of stock
options.
Restructuring Charges
The Company continues its consolidation of facilities and
reduction of workforce, as described in the 1994 Annual Report to
shareholders, reducing restructuring reserves to approximately $29
million at the end of the current quarter. The Company is also
proceeding with the discontinuance of older, low-volume products.
8
<PAGE>
Results of Operations
26 WEEKS ENDED NOVEMBER 26, 1994
vs.
26 WEEKS ENDED NOVEMBER 27, 1993
In the first half of fiscal 1995, net earnings were $34.4
million, or $1.13 per share compared with $21.2 million, or $0.69 per
share in the first half of fiscal 1994.
Net Sales were $661.1 million, an increase of 9% from the prior
year's total of $607.2 million. All continuing businesses showed
good sales growth except Network Displays Division. Other sales,
which include the non-strategic businesses disposed of at the end of
last year and during the first quarter, declined from $49.7 million to
$8.0 million. Sales for continuing business increased by 17% from
$557.5 million in 1994 to $653.2 million in 1995.
Measurement Business Division sales of $332.8 million increased
9% from the prior year, with strong growth in communications and TV
test and electronic tools and improvement in instruments. Color
Printing and Imaging Division sales increased 44% to $197.9 million
reflecting continued heavy demand for the current printer lines.
Video Systems Division sales increased 14% to $82.9 million,
benefiting from stronger markets worldwide and from licensing
revenues. Network Display Division sales declined by 7% to $39.6
million as a result of the reduction in large one-time X terminal
sales in the United States and the continued decline in service
revenue from the Company's old terminals business.
Sales to customers in the United States increased slightly from
$348.5 million to $349.8 million, representing 53% of total sales.
The majority of the
9
<PAGE>
non-strategic operations sales, represented by the
Other product class, were in the United States, and if these sales
are excluded from both years, United States sales increased by 14%.
International sales of $311.4 million were up 14%, due to
improvements in all major markets.
Cost of sales decreased as a percentage of net sales from 53.7%
to 53.0% due to a better geographic mix of sales, the reduction of
low margin component sales, and improved product mix, partly offset
by the increasing use of alternative distribution channels and the
higher cost of components. The Company continues to expect cost of
sales as a percentage of sales to slowly trend higher as more products
are sold through alternative distribution channels.
Research and development (R&D) remained relatively flat as a
percent of sales at 12.3%. R&D increased by 11.5% from $73.2 million
to $81.6 million due principally to higher new product development
funding. Selling, general and administrative expense (SG&A) declined
as a percent of sales from 28.4% to 27.2%. SG&A rose 4.3% in dollar
terms because of higher marketing and distribution expenses associated
with higher sales volumes. Both R&D and SG&A were also impacted by
increased variable compensation due to the Company's improved
performance.
Equity in business ventures net earnings of $0.6 million
compared to losses of $1.4 million in the prior year primarily because
of the Company's equity in earnings of Merix Corporation (formerly the
Company's Circuit Board Division) in the current year. The Circuit
Board Division was still a part of the Company in 1994.
Other expense declined due primarily to higher gains on sales of
stock in other companies.
10
<PAGE>
The provision for income taxes increased by 62%, which is
consistent with the increase in earnings before taxes. The Company's
calculated effective annual tax rate is 26% compared to 34% in the
prior year, but the effect of this reduction is offset by the $2.3
million gain from recalculation of deferred tax benefits in last
year's first quarter. The reduction in the current year tax rate is
due primarily to the capitalization, for tax purposes, of the costs of
a major research and development project.
Net earnings were 62% higher than the prior year, due to higher
sales and gross margins, improved business venture results and lower
other expense, partly offset by higher R&D and SG&A expenses.
13 WEEKS ENDED NOVEMBER 26, 1994
vs.
13 WEEKS ENDED NOVEMBER 27, 1993
In the second quarter of fiscal 1995, net earnings were $18.4
million, or $0.60 per share compared with $11.5 million, or $0.37 per
share in the second quarter of fiscal 1994.
Net Sales were $348.4 million, up 9.9% from the prior year.
Sales of Measurement Business, Color Printing and Imaging and Video
Systems were higher, while Network Displays' sales declined and Other
sales, which include the non-strategic businesses disposed of at the
end of last year and during the first quarter, dropped sharply from
$24.8 million to $1.4 million. Sales for continuing business
increased by 19% from $292.4 million in 1994 to $347.0 million in
1995.
11
<PAGE>
Measurement Business sales of $178.7 million were up 10.1% from
the prior year due to acceptance of new products and improvements in
European and Asian markets. Color Printing and Imaging sales increased
48.7% to $108.4 million, continuing the strong growth trend in both
domestic and international markets. Video Systems sales grew 15.2% to
$40.1 million from generally improving market conditions. Network
Displays sales were 11.6% lower at $19.8 million as a result of the
reduction in large one-time X terminal sales in the United States and
the continued decline in service revenue from the Company's old
terminals business.
Sales to customers in the United States were essentially flat at
$180.3 million, representing 52% of total sales. The majority of the
non-strategic operations sales, represented by the Other product
class, were in the United States, and if these sales are excluded
from both years, United States sales increased by 13%. International
sales of $168.1 million were up 23% from $137.1 million in the prior
year, with strong growth in Japan and the rest of the Pacific, and
good improvement over last year in Europe.
Product orders for the quarter were $334 million versus $281
million in the prior year's quarter, with strong growth in all
international markets and continuing improvement in the United States.
Cost of sales amounted to 54.2% of net sales, flat with the prior
year. A better geographic mix of sales, the reduction of low margin
component sales and improved product mix in each of the businesses
were offset primarily by the increasing use of alternative
distribution channels and the higher cost of components.
Research and development (R&D) remained relatively constant as a
percent of sales at 11.6%. R&D expenditures increased by 8.7% over
last year due principally to higher new product development funding.
Selling, general and administrative
12
<PAGE>
expense (SG&A) declined as a
percent of sales from 28.0% to 26.8%, but was 5.2% higher than the
prior year, in dollar terms, because of higher marketing and
distribution expenses associated with higher sales volumes. Both R&D
and SG&A were also impacted by increased variable compensation due to
the Company's improved performance.
Equity in business ventures net earnings of $1.0 million
compared to losses of $0.3 million in the prior year primarily because
of the Company's equity in earnings of Merix Corporation in the
current quarter.
Income taxes increased from $5.9 million to $6.5 million due to
higher earnings before taxes in the current quarter partially offset
by a lower effective annual tax rate. The Company's calculated
effective annual tax rate is 26% compared to 34% in the second quarter
of the prior year.
Net earnings of $18.4 million were 60% higher than the prior year
due primarily to higher sales.
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
(3) Bylaws,as amended.
(27) Financial Data Schedule
(b) A report on Form 8-K was filed during the quarter for which this
report is filed. The report was dated October 7, 1994 and
covered items 5 and 7. A Consolidated Statement of Operations
for the 52 weeks ended August 27, 1994 was filed as Exhibit 1 to
this report.
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
January 6, 1995 TEKTRONIX, INC.
By /s/ CARL W. NEUN
__________________
Carl W. Neun
Vice President and
Chief Financial Officer
<PAGE>
EXHIBIT INDEX
Exhibit
Number Document Description
_______ ____________________
(a) Exhibits
(3) Bylaws, as amended.
(27) Financial Data Schedule.
(b) A report on Form 8-K was filed during the quarter for which this
report is filed. The report was dated October 7, 1994 and
covered items 5 and 7. A Consolidated Statement of Operations
for the 52 weeks ended August 27, 1994 was filed as Exhibit 1 to
this report.
14
</TABLE>
EXHIBIT 3
As Amended through December 15, 1994
BYLAWS
OF
TEKTRONIX, INC.
ARTICLE I
SHAREHOLDERS
Section 1. Annual Meeting. The annual meeting of
shareholders shall be held on the fourth Thursday of September each
year, at such time as the board of directors shall designate, for
the purpose of electing directors and for the transaction of such
other business as may properly come before the meeting. If the day
fixed for the annual meeting shall be a legal holiday in the State
of Oregon, the meeting shall be held on the next succeeding
Thursday. If the election of directors shall not be held on the
day designated for any annual meeting, the board of directors shall
cause the election to be held at a special meeting of the
shareholders as soon thereafter as conveniently may be.
Section 2. Special Meetings. Special meetings of the
shareholders may be called by the Chairman of the Board or by the
board of directors, and shall be called by the Chairman of the
Board at the request of the holders of not less than one tenth of
all the outstanding shares of the corporation entitled to vote at
the meeting.
Section 3. Place of Meetings. The place of each annual
meeting and any special meeting of the shareholders shall be
determined by the board of directors.
Section 4. Notice of Meeting. Written or printed notice
stating the date, time and place of the shareholders meeting and,
in the case of a special meeting or a meeting for which special
notice is required by law, the purposes for which the meeting is
called, shall be delivered by the corporation to each shareholder
entitled to vote at the meeting and, if required by law, to any
other shareholders entitled to receive notice, not earlier than
sixty days nor less than thirty days before the meeting date. If
mailed, the notice shall be deemed delivered when it is mailed to
the shareholder with postage prepaid at the shareholder's address
shown in the corporation's record of shareholders.
Section 5. Closing of Transfer Records or Fixing of
Record Date. The board of directors may fix a future date as the
record date to determine the shareholders entitled to notice of a
shareholders meeting, demand a special meeting, vote, take any
other action or receive payment of any share or cash dividend or
other distribution. This date shall not be earlier than seventy
days or, in the case of a meeting, later than thirty-five days
before the meeting or action requiring a determination of
shareholders. The record date for any meeting, vote or other
action of the shareholders shall be the same for all voting groups.
If not otherwise fixed by the board of directors, the record date
to determine shareholders entitled to notice of and to vote at an
annual or special shareholders meeting is the close of business on
the day before the notice is first mailed or delivered to
shareholders. If not otherwise fixed by the board of directors,
the record date to determine shareholders entitled to receive
payment of any share or cash dividend or other distribution is the
close of business on the day the board of directors authorizes the
share or cash dividend or other distribution.
Section 6. Voting Lists. After a record date for a
meeting is fixed, the corporation shall prepare an alphabetical
list of all shareholders entitled to notice of the shareholders
meeting. The list shall be arranged by voting group and, within
each voting group, by class or series of shares, and it shall show
the address of and number of shares held by each shareholder. The
shareholders list shall be available for inspection by any
shareholder, upon proper demand as may be required by law,
beginning two business days after notice of the meeting is given
and continuing through the meeting, at the corporation's principal
office or at a place identified in the meeting notice in the city
where the meeting will be held. The corporation shall make the
shareholders list available at the meeting, and any shareholder or
the shareholder's agent or attorney shall be entitled to inspect
the list at any time during the meeting or any adjournment.
Refusal or failure to prepare or make available the shareholders
list does not affect the validity of action taken at the meeting.
Section 7. Quorum; Adjournment.
(a) Shares entitled to vote as a separate voting group
may take action on a matter at a meeting only if a quorum of those
shares exists with respect to that matter. A majority of the votes
entitled to be cast on the matter by the voting group constitutes
a quorum of that voting group for action on that matter.
(b) A majority of votes represented at the meeting,
although less than a quorum, may adjourn the meeting from time to
time to a different time and place without further notice to any
shareholder of any adjournment. At an adjourned meeting at which
a quorum is present, any business may be transacted that might have
been transacted at the meeting originally held.
(c) Once a share is represented for any purpose at a
meeting, it shall be present for quorum purposes for the remainder
of the meeting and for any adjournment of that meeting unless a new
record date is or must be set for the adjourned meeting. A new
record date must be set if the meeting is adjourned to a date more
than 120 days after the date fixed for the original meeting.
Section 8. Voting. If a quorum exists, action on a
matter, other than the election of directors, by a voting group is
approved if the votes cast within the voting group favoring the
action exceed the votes cast opposing the action, unless a greater
number of affirmative votes is required by law or the Restated
Articles of Incorporation. Unless otherwise provided in the
Restated Articles of Incorporation, directors are elected by a
plurality of the votes cast by the shares entitled to vote in the
election at a meeting at which a quorum is present.
Section 9. Proxies. At all meetings of shareholders, a
shareholder may vote by proxy executed in writing by the
shareholder or by his duly authorized attorney in fact. Such proxy
shall be filed with the secretary of the corporation before or at
the time of the meeting. No proxy shall be valid after eleven
months from the date of its execution, unless otherwise provided in
the proxy.
Section 10. Voting of Shares by Certain Holders.
(a) Shares standing in the name of another corporation
may be voted by such officer, agent or proxy as the bylaws of such
corporation may prescribe, or, in the absence of such provision, as
the board of directors of such other corporation may determine.
(b) Shares held by an administrator, executor, guardian
or conservator may be voted by him, either in person or by proxy,
without a transfer of such shares into his name. Shares standing
in the name of a trustee may be voted by him, either in person or
by proxy, but no trustee shall be entitled to vote shares held by
him without a transfer of such shares into his name.
(c) Shares standing in the name of a receiver may be
voted by such receiver, and shares held by or under the control of
a receiver may be voted by such receiver without the transfer
thereof into his name if authority so to do be contained in an
appropriate order of the court by which such receiver was
appointed.
(d) A shareholder whose shares are pledged shall be
entitled to vote such shares until the shares have been transferred
into the name of the pledgee, and thereafter the pledgee shall be
entitled to vote the shares so transferred.
(e) Neither treasury shares nor shares held by the
corporation in a fiduciary capacity, nor shares held by another
corporation if a majority of the shares entitled to vote for the
election of directors of such other corporation is held by the
corporation, shall be voted at any meeting or counted in
determining the total number of outstanding shares at any given
time.
Section 11. Proper Business for Shareholders' Meeting.
To be properly brought before the meeting, business must be either
(a) specified in the notice of meeting (or any supplement thereto)
given by or at the direction of the board of directors, (b)
otherwise properly brought before a meeting by or at the direction
of the board of directors, or (c) otherwise properly brought before
the meeting by a shareholder. In addition to any other applicable
requirements, for business to be properly brought before an annual
meeting by a shareholder, the shareholder must have given timely
notice thereof in writing to the Secretary of the corporation. To
be timely, a shareholder's notice must be delivered to or mailed
and received at the principal executive office of the corporation
not less than 50 days nor more than 75 days prior to the meeting;
provided, however, that in the event that less than 65 days' notice
or prior public disclosure of the date of the meeting is given or
made to shareholders, notice by the shareholder to be timely must
be so received not later than the close of business on the 10th day
following the day on which such notice of the date of the annual
meeting was mailed or such public disclosure was made, whichever
first occurs. A shareholder's notice to the Secretary shall set
forth (a) one or more matters appropriate for shareholder action
that the shareholder proposes to bring before the meeting, (b) a
brief description of the matters desired to be brought before the
meeting and the reasons for conducting such business at the
meeting, (c) the name and record address of the shareholder, (d)
the class and number of shares of the corporation that the
shareholder owns or is entitled to vote and (e) any material
interest of the shareholder in such matters. Notwithstanding
anything in these bylaws to the contrary, no business shall be
conducted at the annual meeting except in accordance with the
procedure set forth in this Section 11; provided, however, that
nothing in this Section 11 shall be deemed to preclude discussion
by any shareholder of any business properly brought before the
annual meeting. The Chairman of the Board shall, if the facts
warrant, determine and declare to the meeting that the business was
not properly brought before the meeting in accordance with the
provisions of this Section 11, and if the Chairman of the Board
should so determine, shall so declare to the meeting any such
business not properly brought before the meeting shall not be
transacted.
Section 12. Shareholder Nomination of Directors. Not
less than 50 days nor more than 75 days prior to the date of any
annual meeting of shareholders, any shareholder who intends to make
a nomination at the annual meeting shall deliver a notice to the
Secretary of the corporation setting forth (a) as to each nominee
whom the shareholder proposes to nominate for election or
reelection as a director, (i) the name, age, business address and
residence address of the nominee, (ii) the principal occupation or
employment of the nominee, (iii) the class and number of shares of
capital stock of the corporation that are beneficially owned by the
nominee and (iv) any other information concerning the nominee that
would be required, under the rules of the Securities and Exchange
Commission, in a proxy statement soliciting proxies for the
election of such nominee; and (b) as to the shareholder giving the
notice, (i) the name and record address of the shareholder and (ii)
the class and number of shares of capital stock of the corporation
that are beneficially owned by the shareholder; provided, however,
that in the event that less than 65 days' notice or prior public
disclosure of the date of the annual meeting is given or made to
shareholders, notice by the shareholder to be timely must be so
delivered not later than the close of business on the 10th day
following the day on which such notice of the date of the meeting
was mailed or such public disclosure was made, whichever first
occurs. Such notice shall include a signed consent to serve as a
director of the corporation, if elected, of each such nominee. The
corporation may require any proposed nominee to furnish such other
information as may reasonably be required by the corporation to
determine the eligibility of such proposed nominee to serve as a
director of the corporation.
Section 13. Shareholder Nomination of Directors -
Special Meetings. Any shareholder who intends to make a nomination
at any special meeting of shareholders held for the purpose of
electing directors shall deliver a timely notice to the Secretary
of the corporation setting forth (a) as to each nominee whom the
shareholder proposes to nominate for election or reelection as a
director, (i) the name, age, business address and residence address
of the nominee, (ii) the principal occupation or employment of the
nominee, (iii) the class and number of shares of capital stock of
the corporation that are beneficially owned by the nominee and (iv)
any other information concerning the nominee that would be
required, under the rules of the Securities and Exchange
Commission, in a proxy statement soliciting proxies for the
election of such nominee; and (b) as to the shareholder giving the
notice, (i) the name and record address of the shareholder and (ii)
the class and number of shares of capital stock of the corporation
that are beneficially owned by the shareholder. To be timely for
these purposes, such notice must be given (a) if given by the
shareholder (or any of the shareholders) who or that made a demand
for a meeting pursuant to which such meeting is to be held,
concurrently with the delivery of such demand, and (b) otherwise,
not later than the close of business on the 10th day following the
day on which the notice of the special meeting was mailed. Such
notice shall include a signed consent to serve as a director of the
corporation, if elected, of each such nominee. The corporation may
require any proposed nominee to furnish such other information as
may reasonably be required by the corporation to determine the
eligibility of such proposed nominee to serve as a director of the
corporation.
ARTICLE II
BOARD OF DIRECTORS
Section 1. General Powers. The business and affairs of
the corporation shall be managed by its board of directors.
Section 2. Number, Tenure and Qualifications. The
directors of the corporation shall be divided into three classes of
directors designated Class I, Class II and Class III. The number
of directors of the corporation shall be nine, consisting of three
Class I directors, three Class II directors and three Class III
directors. At the 1986 annual meeting of shareholders, Class I
directors were elected to a term of office expiring at the 1987
annual meeting of shareholders, Class II directors were elected to
a term of office expiring at the 1988 annual meeting of
shareholders, and Class III directors were elected to a term of
office expiring at the 1989 annual meeting of shareholders, and in
each case until their successors are elected and qualified. At
each annual meeting of shareholders following such initial
classification and election, directors elected to succeed those
directors whose terms expire shall be elected to serve three-year
terms and until their successors are elected and qualified, so that
the term of one class of directors will expire each year. When the
number of directors is changed by amendment of this Section 2, any
newly created directorships, or any decrease in directorships,
shall be so apportioned among the classes so as to make all classes
as nearly equal as possible, provided that no decrease in the
number of directors constituting the Board of Directors shall
shorten the term of any incumbent director. Directors need not be
residents of the State of Oregon or shareholders of the
corporation.
Section 3. Annual and Regular Meetings. The annual
meeting of the board of directors may be held before or after the
annual meeting of shareholders, on the day and at the time and
place designated by the Chairman of the Board. The board of
directors may provide by resolution, the time and place, either
within or without the State of Oregon, for the holding of regular
meetings without notice other than such resolution.
Section 4. Special Meetings. Special meetings of the
board of directors may be called by or at the request of the
Chairman of the Board or any two directors. The person or persons
authorized to call special meetings of the board of directors may
fix any place, either within or without the State of Oregon, as the
place for holding any special meeting of the board of directors
called by them.
Section 5. Notice. Notice of the date, time and place
of any special meeting of the board of directors shall be given at
least three days prior to the meeting by notice communicated in
person, by telephone, telegraph, teletype, other form of wire or
wireless communication, mail or private carrier. If written,
notice shall be effective at the earliest of (a) when received, (b)
five days after its deposit in the United States mail, as evidenced
by the postmark, if mailed postpaid and correctly addressed, or (c)
on the date shown on the return receipt, if sent by registered or
certified mail, return receipt requested and the receipt is signed
by or on behalf of the addressee. Notice by all other means shall
be deemed effective when received by or on behalf of the director.
Notice of any regular or special meeting need not describe the
purposes of the meeting unless required by law or the Restated
Articles of Incorporation.
Section 6. Quorum. A majority of the number of
directors fixed by Section 2 of this Article II shall constitute a
quorum for the transaction of business at any meeting of the board
of directors, but if less than such majority is present at a
meeting, a majority of the directors present may adjourn the
meeting from time to time without further notice.
Section 7. Manner of Acting. The act of the majority of
the directors present at a meeting at which a quorum is present
shall be the act of the board of directors, unless a greater number
is required by law or these bylaws.
Section 8. Vacancies. Any vacancy on the board of
directors, including a vacancy resulting from an increase in the
number of directors, may be filled by the shareholders, the board
of directors, the remaining directors if less than a quorum (by the
vote of a majority thereof) or by a sole remaining director. Any
vacancy not filled by the directors shall be filled by election at
an annual meeting or at a special meeting of shareholders called
for that purpose. A vacancy that will occur at a specified later
date, by reason of a resignation or otherwise, may be filled before
the vacancy occurs, but the new director may not take office until
the vacancy occurs.
Section 9. Compensation. By resolution of the board of
directors, the directors may be paid their expenses, if any, of
attendance at each meeting of the board of directors, and may be
paid a fixed sum for attendance at each meeting of the board of
directors or a stated salary as director. No such payment shall
preclude any director from serving the corporation in any other
capacity and receiving compensation therefor.
Section 10. Presumption of Assent. A director of the
corporation who is present at a meeting of the board of directors
at which action on any corporate matter is taken shall be presumed
to have assented to the action taken unless his dissent shall be
entered in the minutes of the meeting or unless he shall file his
written dissent to such action with the person acting as the
secretary of the meeting before the adjournment thereof or shall
forward such dissent by registered mail to the secretary of the
corporation immediately after the adjournment of the meeting. Such
right to dissent shall not apply to a director who voted in
favor of such action. It shall be the duty of the person acting as
secretary of the meeting to record in the minutes any negative
votes, abstentions or dissents if requested to do so by the
director so voting, abstaining or dissenting.
Section 11. Informal Action by Directors. Any action
required to be taken at a meeting of directors, or any action which
may be taken at a meeting of directors, may be taken without a
meeting if a consent in writing setting forth the action so taken
shall be signed by all the directors entitled to vote with respect
to the subject matter thereof. Such consent shall have the same
effect as a unanimous vote of the directors.
Section 12. Removal. The shareholders may remove one or
more directors with or without cause at a meeting called expressly
for that purpose, unless the Restated Articles of Incorporation
provide for removal for cause only.
Section 13. Transactions with Directors. Any contract
or other transaction between the corporation and one or more of its
directors, or between the corporation and another party in which
one or more of its directors are interested shall be valid
notwithstanding the presence or participation of such director or
directors in a meeting of the board of directors which acts upon or
in reference to such contract or transaction, if the fact of such
interest shall be disclosed or known to the board of directors and
it shall authorize and approve such contract or transaction by a
vote of a majority of the directors present. Such interested
director or directors may be counted in determining whether a
quorum is present at any such meeting, but shall not be counted in
calculating the majority necessary to carry such vote. This
section shall not invalidate any contract or other transaction
which would otherwise be valid under applicable law.
Section 14. Meeting by Telephone Conference Call. A
meeting of the board of directors may be held by means of
conference telephone or similar communications equipment through
which all persons participating in the meeting can hear each other.
Participation in a meeting pursuant to this section shall
constitute presence in person at the meeting. Notice (including
waiver of notice) and quorum requirements as specified in Sections
5 and 6 of this Article shall apply to meetings pursuant to this
section. A record shall be kept of the action taken for insertion
into the minute book.
ARTICLE III
COMMITTEES
Section 1. Designation. The board of directors, by
resolution adopted by a majority of the number of directors fixed
by Section 2 of Article II of these bylaws, may designate from
among its members an executive committee and one or more other
committees. The designation of a committee, and the delegation of
authority to it, shall not operate to relieve the board of
directors, or any member thereof, of any responsibility imposed
upon it or him by law. No member of any committee shall continue
to be a member thereof after he ceases to be a director of the
corporation. The board of directors shall have the power at any
time, by resolution adopted by a majority of the number of
directors fixed by Section 2 of Article II of these bylaws, to
increase or decrease the number of members of any committee, to
fill vacancies thereon, to change any member thereof, and to change
the functions or terminate the existence thereof.
Section 2. Powers. During the interval between meetings
of the board of directors, and subject to such limitations as may
be imposed by resolution of the board of directors, the executive
committee shall have and may exercise all the authority of the
board of directors in the management of the corporation. Any other
committee shall have such authority of the board of directors as
the board shall delegate by resolution adopted by a majority of the
number of directors fixed by Section 2 of Article II of these
bylaws. Notwithstanding the foregoing, neither the executive
committee nor any other committee shall have the authority of the
board of directors in reference to amending the articles of
incorporation; adopting a plan of merger or consolidation;
recommending to the shareholders the sale, lease, exchange,
mortgage, pledge or other disposition of all or substantially all
the property and assets of the corporation otherwise than in the
usual and regular course of its business; recommending to the
shareholders a voluntary dissolution of the corporation or
revocation thereof; or amending the bylaws of the corporation.
Reports on actions
taken by a committee shall be submitted to the next succeeding
meeting of the board of directors.
Section 3. Procedure; Meetings; Quorum. Each committee
shall appoint a chairman from among its members and a secretary who
may, but need not, be a member of the committee or of the board of
directors. The chairman shall preside at all committee meetings
and the secretary shall keep a record of its proceedings. Regular
meetings of a committee, of which no notice shall be necessary,
shall be held on such days and at such places as shall be fixed by
resolution adopted by a majority of the committee. Special
meetings of a committee shall be called at the request of any
member of the committee, and shall be held upon notice by letter or
telegram mailed or delivered for transmission not later than during
the second day preceding the day of the meeting, or by word of
mouth or telephone received not later than the day immediately
preceding the day of the meeting. Any notice required by this
section may be waived in writing signed by the member or members
entitled to the notice, whether before, or after the meeting time
stated therein. Attendance of any member of a committee at a
special meeting shall constitute a waiver of notice of such
meeting. A majority of the committee, from time to time, shall be
necessary to constitute a quorum for the transaction of business,
and the act of a majority of the members present at a meeting at
which a quorum is present shall be the act of the committee. The
board of directors may vote to the members of any committee a
reasonable fee as compensation for attendance at meetings of such
committee.
Section 4. Meeting by Telephone Conference Call. A
meeting of a committee may be held by means of conference telephone
or similar telephone communications equipment through which all
persons participating in the meeting can hear each other.
Participation in the meeting pursuant to this section shall
constitute presence in person at the meeting. Notice (including
waiver of notice) and quorum requirements as specified in Section
3 of this Article shall apply to meetings pursuant to this section.
A record shall be kept of action taken for insertion into the
minute book.
Section 5. Informal Action by Committee. Any action
which may be taken at a meeting of a committee may be taken without
a meeting if a consent in writing setting forth the actions so
taken shall be signed by all members of the committee entitled to
vote with respect to the subject matter thereof. The action shall
be effective on the date when the last signature is placed on the
consent or at such earlier time as is set forth therein. The
consent shall have the same effect as a unanimous vote of the
committee.
ARTICLE IV
OFFICERS
Section 1. Number. The officers of the corporation
shall be a Chairman of the Board of Directors (the "Chairman of the
Board"); a President; a Secretary; and such other officers and
assistant officers as may be elected or appointed from time to
time by the board of directors. The officers of the
corporation shall have such
powers and duties as may be prescribed by the board of directors.
Any two or more offices may be held by the same person.
Section 2. Election and Term of Office. The officers of
the corporation shall be elected annually by the board of directors
at the first meeting of the board of directors held after the
annual meeting of the shareholders. If the election of officers
shall not be held at the meeting, it shall be held as soon
thereafter as is convenient. Each officer shall hold office until
a successor shall have been duly elected and shall have qualified
or until the officer's death, resignation or removal in the manner
hereinafter provided.
Section 3. Removal. Any officer or agent elected
or appointed by the board of directors may be removed by the
board of directors at any time with or without cause. Election or
appointment of an officer or agent shall not of itself create
contract rights.
Section 4. Vacancies. A vacancy in any office because
of death, resignation, removal, disqualification or otherwise, may
be filled by the board of directors for the unexpired portion of
the term.
Section 5. Chairman of the Board. The Chairman of the
Board of Directors shall be the chief executive officer of the
corporation and, subject to the control of the board of directors,
shall in general supervise and control all of the business and
affairs of the corporation. The Chairman of the Board may execute
in behalf of the corporation all contracts, agreements, stock
certificates and other instruments. The Chairman of the Board
shall from time to time report to the board of directors all
matters within the Chairman's knowledge affecting the corporation
which should be brought to the attention of the board. The
Chairman of the Board shall vote all shares of stock in other
corporations owned by the corporation, and shall be empowered to
execute proxies, waivers of notice, consents and other instruments
in the name of the corporation with respect to such stock. He
shall preside at all meetings of the board of directors and
shareholders. The Chairman of the Board shall perform such other
duties as may be prescribed from time to time by the board of
directors.
Section 6. President. The President shall be the chief
operating officer of the corporation and shall supervise the
operations of the corporation, subject to the direction of the
board of directors and the Chairman of the Board. The President
shall perform such other duties as may be prescribed from time to
time by the board of directors or the Chairman of the Board.
Section 7. Secretary. The Secretary shall keep the
minutes of all meetings of the directors and shareholders, and
shall have custody of the minute books and other records
pertaining to the corporate business. The Secretary shall
countersign all stock certificates and other instruments requiring
the seal of the corporation and shall perform such other duties as
may be prescribed from time to time by the board of directors.
Section 8. Salaries. The salaries of the officers shall
be fixed from time to time by the board of directors and no officer
shall be prevented from receiving such salary because the officer
is also a director of the corporation.
ARTICLE IV-A
NON-CORPORATE OFFICERS
A. The Chairman of the Board of the corporation shall have
the power, in the exercise of his or her discretion, to appoint
persons to hold positions and titles such as vice president,
treasurer, assistant vice president, assistant secretary, president
of a division, or similar titles as the business of the corporation
may require, subject to such limits in appointment power as the
board of directors may determine. Each such appointee shall have
such title, shall serve in such capacity, and shall have such
authority and perform such duties as the Chairman of the Board of
the corporation shall determine; provided that no such appointee
shall have executive powers, be in charge of a principal business
unit, division or function or perform similar policy making
functions. The board of directors shall be advised of any such
appointment at a meeting of the board of directors, and the
appointment shall be noted in the minutes of the meeting. The
minutes shall state that such persons are non-corporate officers
appointed pursuant to this Article IV-A of these bylaws.
B. Any such appointee, absent specific election by the board
of directors as an elected corporate officer (i) shall not be
considered an officer elected by the board of directors pursuant to
Article IV of these bylaws, (ii) shall not be considered an
'officer' of the corporation for the purposes of Rule 3b-2
promulgated under the Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder (collectively,
the "Act"), or an 'executive officer' of the corporation for the
purposes of Rule 3b-7 promulgated under the Act, and similarly
shall not be considered an 'officer' of the corporation for the
purposes of Section 16 of the Act, or an 'executive officer' of the
corporation for the purposes of Section 14 of the Act, and (iii)
shall be empowered to represent himself or herself to third parties
as an appointed vice president, etc., only, and shall be empowered
to execute documents, bind the corporation, or otherwise act on
behalf of the corporation only as authorized by the Chairman of the
Board or the President of the corporation or by resolution of the
board of directors. An elected corporate officer of the
corporation may also be appointed to a position pursuant to this
Article IV-A.
C. A person appointed to a position pursuant to this Article
IV-A may be removed at any time by the Chairman of the Board or by
the board of directors of the corporation.
ARTICLE V
INDEMNITY OF DIRECTORS AND OFFICERS
A. The corporation shall indemnify to the fullest extent
then permitted by law any person who is made, or threatened to be
made, a party to any threatened, pending or completed action, suit
or proceeding, whether civil, criminal, administrative,
investigative or otherwise (including an action, suit or proceeding
by or in the right of the corporation) by reason of the fact that
the person is or was a director or officer of the corporation or is
or was serving at the request of the corporation as a director or
officer of another corporation, partnership, joint venture, trust
or other enterprise against all expenses (including attorneys'
fees), judgments, amounts paid in settlement and fines actually and
reasonably incurred in connection therewith.
B. Expenses incurred in connection with an action, suit or
proceeding may be paid or reimbursed by the corporation in advance
of the final disposition of such action, suit or proceeding upon
receipt of an undertaking by or on behalf of the director or
officer to repay such amounts if it shall ultimately be determined
that such person is not entitled to be indemnified by the
corporation.
C. The indemnification provided hereby shall not be deemed
exclusive of any other rights to which those indemnified may be
entitled under the Restated Articles of Incorporation, any statute,
agreement, or vote of shareholders or directors or otherwise, both
as to action in any official capacity and as to action in another
capacity while holding an office, and shall continue as to a person
who has ceased to be a director or officer and shall inure to the
benefit of the heirs, executors and administrators of such person.
D. The corporation shall have power to purchase and maintain
insurance on behalf of any person who is or was a director,
officer, employee or agent of the corporation, or fiduciary with
respect to any employee benefit plans of the corporation or is or
was serving at the request of the corporation as a director,
officer, employee or agent, or as a fiduciary of an employee
benefit plan, of another corporation, partnership, joint venture,
trust or other enterprise against any liability asserted against
and incurred by the person in any such capacity, or arising out of
the person's status as such, whether or not the corporation would
have the power to indemnify the person against such liability under
the provisions of the Restated Articles of Incorporation or the
Oregon Business Corporation Act.
E. Any person other than a director or officer who is or was
an employee or agent of the corporation, or fiduciary within the
meaning of the Employee Retirement Income Security Act of 1974 with
respect to any employee benefit plans of the corporation, or is or
was serving at the request of the corporation as an employee or
agent of another corporation, partnership, joint venture, trust or
other enterprise may be indemnified to such extent as the board of
directors in its discretion at any time or from time to time may
authorize.
ARTICLE VI
CONTRACTS, LOANS, CHECKS AND DEPOSITS
Section 1. Contracts. The board of directors may
authorize any officer or officers, agent or agents, to enter into
any contract or execute and deliver any instrument in the name of
and on behalf of the corporation, and such authority may be general
or confined to specific instances.
Section 2. Loans. No loans shall be contracted on
behalf of the corporation and no evidence of indebtedness shall be
issued in its name unless authorized by a resolution of the board
of directors. Such authority may be general or confined to
specific instances.
Section 3. Checks, Draft, etc. All checks, drafts or
other orders for the payment of money, notes or other evidences of
indebtedness issued in the name of the corporation, shall be signed
by such officer or officers, agent or agents of the corporation and
in such manner as shall from time to time be determined by or
pursuant to resolution of the board of directors.
Section 4. Deposits. All funds of the corporation not
otherwise employed shall be deposited from time to time to the
credit of the corporation in such banks, trust companies or other
depositories as the board of directors may select.
ARTICLE VII
CERTIFICATES FOR SHARES AND THEIR TRANSFER
Section 1. Certificates for Shares. Certificates
representing shares of the corporation shall be in such form as
shall be determined by the board of directors. Such certificates
shall be signed by the Chairman of the Board or a Vice President
and by the Secretary or an Assistant Secretary and may be sealed
with the seal of the corporation or a facsimile thereof. All
certificates for shares shall be consecutively numbered or
otherwise identified. The name and address of the person to whom
the shares represented thereby are issued, with the number of
shares and date of issue, shall be entered on the share transfer
records of the corporation. All certificates surrendered to the
corporation for transfer shall be cancelled and no new certificate
shall be issued until the former certificate for a like number of
shares shall have been surrendered and cancelled, except that in
case of a lost, destroyed or mutilated certificate a new one may be
issued therefore upon such terms and indemnity to the corporation
as the board of directors may prescribe.
Section 2. Transfer of Shares. Transfer of shares of
the corporation shall be made only on the share transfer records of
the corporation by the holder of record thereof or by his legal
representative, who shall furnish proper evidence of authority to
transfer, or by his attorney thereunto authorized by power
of attorney duly executed and filed with the secretary of the
corporation. The person in whose name shares stand on the books of
the corporation shall be deemed by the corporation to be the owner
thereof for all purposes.
Section 3. Transfer Agent and Registrar. The board of
directors may from time to time appoint one or more transfer agents
and one or more registrars for the shares of the corporation, with
such powers and duties as the board of directors shall determine by
resolution. The signatures of the president or vice president and
the secretary or assistant secretary upon a certificate may be
facsimiles if the certificate is countersigned by a transfer agent
or registered by a registrar other than the corporation itself or
an employee of the corporation.
Section 4. Officer Ceasing to Act. In case any officer
who has signed or whose facsimile signature has been placed upon a
stock certificate shall have ceased to be such officer before such
certificate is issued, it may be issued by the corporation with the
same effect as if he were such officer at the date of its issuance.
Section 5. Fractional Shares. The corporation shall not
issue certificates for fractional shares.
ARTICLE VIII
FISCAL YEAR
The fiscal year of the corporation shall end on the last
Saturday in May of each year.
ARTICLE IX
DIVIDENDS
The board of directors may from time to time declare, and
the corporation may pay, dividends on its outstanding shares in the
manner and upon the terms and conditions provided by law.
ARTICLE X
SEAL
The seal of the corporation shall be in the form of a
circle containing therein "TEKTRONIX, INC. CORPORATE SEAL OREGON."
ARTICLE XI
AMENDMENTS
These bylaws may be altered, amended or repealed and new
bylaws may be adopted by the board of directors at any regular or
special meeting.
I HEREBY CERTIFY that the foregoing are the bylaws of
TEKTRONIX, INC. adopted at a meeting of the board of directors of
the company held on September 9, 1963, and as amended with regard
to Article IV at a meeting of the board of directors of the company
held on December 22, 1966, and as amended with regard to Article IV
at a meeting of the board of directors of the company held on
January 30, 1969, and as amended with regard to Article II at a
meeting of the board of directors of the company held on July 17,
1969, and as amended with regard to Article IV at a meeting of the
board of directors of the company held on September 24, 1970, and
as amended with regard to Article IV at a meeting of the board of
directors of the company held on September 30, 1971, and as amended
with regard to Article V at a meeting of the board of directors of
the company held on September 27, 1973, and as amended with regard
to Article IV at a meeting of the board of directors of the company
held on September 26, 1974, and as amended with regard to Article
I at a meeting of the board of directors of the company held on
April 28, 1977, and as amended with regard to Article I at a
meeting of the board of directors of the company held on May 20,
1977, and as amended with regard to Article IV at a meeting of the
board of directors of the company held on January 18, 1979, and as
amended with regard to Article II at a meeting of the board of
directors of the company held on February 28, 1980, and as amended
with regard to Article II at a meeting of the board of directors of
the company held on May 22, 1980, and as amended with regard to
Articles I, II and III at a meeting of the board of directors of
the company held on June 25, 1980, and as amended with regard to
Article II at a meeting of the board of directors of the company
held on September 9, 1980, with the amendment to be effective
September 27, 1980, and as amended with regard to Article I at a
meeting of the board of directors of the company held on July 23,
1981, and approved by the shareholders at a meeting held on
September 26, 1981, and as amended with regard to Article VI at a
meeting of the board of directors of the company held on May 3,
1983, and as amended with regard to Article II at a meeting of the
board of directors of the company held on June 30, 1983, and as
amended with regard to Articles III and IV at a meeting of the
board of directors of the company held on March 1, 1984, and as
amended with regard to Article I at a meeting of the board of
directors of the company held on December 6, 1984, and as amended
with regard to Article II at a meeting of the board of directors of
the company held on August 13, 1985, and as amended with regard to
Article II at a meeting of the board of directors of the company
held on October 24, 1985, and as amended with regard to Article II
at a meeting of the board of directors of the company held on July
17, 1986, and as amended with regard to Article V at a meeting of
the board of directors of the company held on September 27, 1986,
and as amended with regard to Article II at a meeting of the board
of directors of the company held on June 23, 1988, and as amended
with regard to Article II at a meeting of the board of directors of
the company held on July 21, 1988, and as amended with regard to
Article II at a meeting of the board of directors of the company
held on July 20, 1989, and as amended with regard to Articles I, II
and IV at a meeting of the board of directors of the company held
on November 29, 1989, and as amended with regard to Articles II and
IV at a meeting of the board of directors of the company held on
April 25, 1990, and as amended with regard to Article I at a
meeting of the board of directors of the company held on June 20,
1990, and as amended with regard to Article II at a meeting of the
board of directors of the company held on July 19, 1990, and as
amended with regard to Articles II and IV at a meeting of the board
of directors of the company held on October 24, 1990, and as
amended with regard to Article II at a meeting of the board of
directors of the company held on March 20, 1991, and as amended
with regard to Article I at a meeting of the board of directors of
the company held on July 17, 1991, and as amended with regard to
Articles I, II, IV, and VII at a meeting of the board of directors
of the company held on September 26, 1991, and as amended with
regard to Article II at a meeting of the board of directors of the
company held on January 29, 1992, and as amended with regard to
Article II by action of the board of directors of the company
without a meeting, effective July 10, 1992, and as amended with
regard to Article IV at a meeting of the board of directors of the
company held on September 23, 1992, and as amended with regard to
Article II by action of the board of directors of the company
without a meeting, effective September 24, 1992, and as amended
with regard to Article I at a meeting of the board of directors of
the company held on October 18, 1992, and as amended with regard to
Article II at a meeting of the board of directors of the company
held on December 2, 1992, and as amended with regard to Article IV-
A at a meeting of the board of directors of the company held on
March 31, 1993, and as amended with regard to Articles I and II at
a meeting of the board of directors of the company held on June 23,
1994, and as amended with regard to Article II at a meeting of the
board of directors of the company held on December 15, 1994.
/s/ JOHN P. KARALIS
______________________
Secretary
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S CONSOLIDATED FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAY-27-1995
<PERIOD-END> NOV-26-1994
<CASH> 36,770
<SECURITIES> 0
<RECEIVABLES> 253,156
<ALLOWANCES> (4,597)
<INVENTORY> 201,631
<CURRENT-ASSETS> 545,642
<PP&E> 600,550
<DEPRECIATION> (379,895)
<TOTAL-ASSETS> 1,036,955
<CURRENT-LIABILITIES> 257,160
<BONDS> 103,652
<COMMON> 196,212
0
0
<OTHER-SE> 334,571
<TOTAL-LIABILITY-AND-EQUITY> 1,036,955
<SALES> 0
<TOTAL-REVENUES> 348,411
<CGS> 0
<TOTAL-COSTS> 188,866
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,256
<INCOME-PRETAX> 24,826
<INCOME-TAX> 6,454
<INCOME-CONTINUING> 18,372
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 18,372
<EPS-PRIMARY> 0.60
<EPS-DILUTED> 0.60
</TABLE>