UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 1, 2000
TEKTRONIX, INC.
(Exact name of registrant as specified in its character)
Oregon 1-4837 93-09343990
(State or other jurisdiction (Commission (IRS Employer
of incorporation) file number) Identification No.)
14200 SW Karl Braun Drive, Beaverton, OR 97077
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (503) 627-7111
26600 SW Parkway, Wilsonville, Oregon 97070-1000
(Former name or former address, if changed since last report)
<PAGE>
Item 2. Acquisition or Disposition of Assets
On January 1, 2000, pursuant to an Amended Asset Purchase Agreement
dated September 22, 1999, as amended (the "Agreement"), between Tektronix, Inc.,
an Oregon corporation ("Tektronix"), and Xerox Corporation, a New York
corporation ("Xerox"), Tektronix and its subsidiaries sold substantially all of
the assets related to its color printing and imaging products division ("CPID")
to Xerox and its affiliates. The purchase price for the assets was $925 million
in cash. In addition, Xerox assumed certain liabilities of Tektronix related to
CPID. The purchase price was negotiated by Tektronix and Xerox.
Item 7. Financial Statements and Exhibits.
(b) Pro forma financial information.
1. Unaudited pro forma condensed consolidated balance sheet and
statement of operations as of and for the year ended May 29,
1999.
2
<PAGE>
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
As of May 29, 1999
(Unaudited)
In Thousands of Dollars
<TABLE>
<CAPTION>
Pro Forma
Historical Adjustments (a) Pro Forma
--------------- --------------- ---------------
<S> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 39,747 $ 925,000 $ 964,747
Accounts receivable - net 313,274 (147,295) 165,979
Inventories 273,370 (115,065) 158,305
Other current assets 93,267 (9,850) 83,417
--------------- --------------- ---------------
Total current assets 719,658 652,790 1,372,448
Property, plant and equipment - net 442,257 (158,488) 283,769
Deferred tax assets 56,405 - 56,405
Other long-term assets 141,045 (19,322) 121,723
--------------- --------------- ---------------
Total assets $ 1,359,365 $ 474,980 $ 1,834,345
=============== =============== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt $ 115,687 $ - $ 115,687
Accounts payable 251,349 (80,043) 171,306
Accrued compensation 110,001 (1,019) 108,982
Deferred revenue 20,009 (17,571) 2,438
--------------- --------------- ---------------
Total current liabilities 497,046 (98,633) 398,413
Long-term debt 150,722 - 150,722
Other long-term liabilities 90,035 (12,397) 77,638
Shareholders' equity:
Common stock 143,263 - 143,263
Retained earnings 458,613 586,010 1,044,623
Accumulated other comprehensive 19,686 - 19,686
--------------- --------------- ---------------
Total shareholders' equity 621,562 586,010 1,207,572
--------------- --------------- ---------------
Total liabilities and shareholders'
equity $ 1,359,365 $ 474,980 $ 1,834,345
=============== =============== ===============
(a) Amounts represent cash proceeds of $925.0 million, net of Color Printing and
Imaging assets and liabilities eliminated from the balance sheet.
</TABLE>
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<PAGE>
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
For the Year Ended May 29, 1999
(Unaudited)
In Thousands of Dollars
<TABLE>
<CAPTION>
Pro Forma
Historical Adjustments Pro Forma
--------------- --------------- ---------------
<S> <C> <C> <C>
Net sales $ 1,861,490 $ (725,354) $ 1,136,136
Cost of sales 1,151,252 (493,830) 657,422
--------------- --------------- ---------------
Gross profit 710,238 (231,524) 478,714
Research and development expenses 204,655 (59,990) 144,665
Selling, general and administrative
expenses 480,714 (151,112) 329,602
Non-recurring charges 84,780 - 84,780
Equity in business ventures' loss 9,230 - 9,230
--------------- --------------- ---------------
Operating loss (69,141) (20,422) (89,563)
Interest expense 15,712 - 15,712
Other income - net 9,616 757 10,373
--------------- --------------- ---------------
Loss before taxes (75,237) (19,665) (94,902)
Income tax benefit (24,076) (6,293) (30,369)
--------------- --------------- ---------------
Net loss $ (51,161) $ (13,372) $ (64,533)
=============== =============== ===============
Average shares outstanding -
basic and diluted 47,700 47,700 47,700
Net loss per share -
basic and diluted (1.07) (0.28) (1.35)
</TABLE>
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<PAGE>
2. Unaudited pro forma condensed consolidated balance sheet and
statement of operations as of and for the six months ended
November 27, 1999.
5
<PAGE>
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
As of November 27, 1999
(Unaudited)
In Thousands of Dollars
<TABLE>
<CAPTION>
Pro Forma
Historical Adjustments (a) Pro Forma
--------------- --------------- ---------------
<S> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 57,860 $ 925,000 $ 982,860
Accounts receivable - net 285,228 (156,591) 128,637
Inventories 217,990 (97,120) 120,870
Other current assets 93,066 570 93,636
--------------- --------------- ---------------
Total current assets 654,144 671,859 1,326,003
Property, plant and equipment - net 402,895 (149,244) 253,651
Deferred tax assets 55,347 - 55,347
Other long-term assets 163,870 (24,376) 139,494
--------------- --------------- ---------------
Total assets $ 1,276,256 $ 498,239 $ 1,774,495
=============== =============== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt $ 79,564 $ - $ 79,564
Accounts payable 226,389 (54,811) 171,578
Accrued compensation 96,216 (1,934) 94,282
Deferred revenue 25,280 (20,961) 4,319
--------------- --------------- ---------------
Total current liabilities 427,449 (77,706) 349,743
Long-term debt 150,596 - 150,596
Other long-term liabilities 76,620 (7,256) 69,364
Shareholders' equity:
Common stock 142,608 - 142,608
Retained earnings 454,046 583,201 1,037,247
Accumulated other comprehensive 24,937 - 24,937
--------------- --------------- ---------------
Total shareholders' equity 621,591 583,201 1,204,792
--------------- --------------- ---------------
Total liabilities and shareholders'
equity $ 1,276,256 $ 498,239 $ 1,774,495
=============== =============== ===============
(a) Amounts represent cash proceeds of $925.0 million, net of Color Printing and
Imaging assets and liabilities eliminated from the balance sheet.
</TABLE>
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<PAGE>
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
For the Six Months Ended November 27, 1999
(Unaudited)
In Thousands of Dollars
<TABLE>
<CAPTION>
Pro Forma
Historical Adjustments Pro Forma
--------------- --------------- ---------------
<S> <C> <C> <C>
Net sales $ 887,175 $ (345,157) $ 542,018
Cost of sales 535,884 (238,155) 297,729
--------------- --------------- ---------------
Gross profit 351,291 (107,002) 244,289
Research and development expenses 95,459 (24,516) 70,943
Selling, general and administrative
expenses 210,936 (67,601) 143,335
Non-recurring charges 26,100 - 26,100
Equity in business ventures' loss 343 - 343
--------------- --------------- ---------------
Operating income 18,453 (14,885) 3,568
Interest expense 9,212 - 9,212
Other income - net 2,147 1,443 3,590
--------------- --------------- ---------------
Income (Loss) before taxes 11,388 (13,442) (2,054)
Income tax expense (benefit) 4,684 (4,762) (78)
--------------- --------------- ---------------
Net income (loss) $ 6,704 $ (8,680) $ (1,976)
=============== =============== ===============
Average shares outstanding -
basic 47,005 47,005 47,005
diluted 47,468 47,468 47,005
Net income (loss) per share -
basic 0.14 (0.18) (0.04)
diluted 0.14 (0.18) (0.04)
</TABLE>
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<PAGE>
Note to Pro Forma Condensed Consolidated Financial Statements
The company's unaudited pro forma condensed consolidated financial statements
give effect to the disposal of the Color Printing and Imaging division as if
such transaction had occurred, for the statements of consolidated operations for
the year ended May 29, 1999, and for the six months ended November 27, 1999, and
for the consolidated balance sheet as of May 29, 1999, and as of November 27,
1999.
These unaudited pro forma condensed consolidated financial statements should be
read in conjunction with the company's 1999 audited consolidated financial
statements. In the company's fiscal year 1999 annual report, Color Printing and
Imaging was a reported segment in the business segments footnote. The pro forma
information shown is not necessarily indicative of the results that would have
been reported had such events actually occurred on the dates specified, nor is
it indicative of the company's future results.
The accompanying pro forma condensed consolidated statement of operations
consists of the historical statements of operations of the company for the year
ended May 29, 1999, and for the six months ended November 27, 1999, less the
historical statements of operations of the Color Printing and Imaging division.
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<PAGE>
(c) Exhibits.
(2) (i) Amended Asset Purchase Agreement dated as of
September 22, 1999 and Amendment Nos. 1 and 2 thereto.
Incorporated by reference to Exhibit (2)(i) of the
Company's Quarterly Report on Form 10-Q for the quarter
ended November 27, 1999, SEC File No. 1-4837.
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<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
Dated: January 6, 2000 TEKTRONIX, INC.
By: CARL W. NEUN
------------------------------------
Name: Carl W. Neun
Title: Senior Vice President and
Chief Financial Officer
