FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2001
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ______ to ______
Commission file number 00100035
A. Full title of the plan and the address of the plan, if different
from that of the issue named below:
GE INTERLOGIX, INC. 401 (k) RETIREMENT PLAN (FORMERLY INTERLOGIX, INC. 401(k)
RETIREMENT PLAN)
GE INTERLOGIX, INC.
114 WEST 7th STREET, SUITE 1300
AUSTIN, TEXAS 78701
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
GENERAL ELECTRIC COMPANY
3135 EASTON TURNPIKE
FAIRFIELD, CT 06431
1
REQUIRED INFORMATION
A. FINANCIAL STATEMENTS AND SCHEDULE:
Page
----
2001 Independent Auditors' Report 3
Copy of 2000 Report of Independent Public Accountants 4
Statements of Net Assets Available for Benefits as of
December 31, 2001 and 2000 5
Statements of Changes in Net Assets Available for
Benefits for the Years Ended December 31, 2001
and 2000 6
Notes to Financial Statements 7
Schedule H, Line 4i - Schedule of Assets (Held at End of
Year) - As of December 31, 2001 11
B. EXHIBITS
23.1 Consent of KPMG LLP
23.2 Notice regarding consent of Arthur Andersen LLP
Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan
Administrator has duly caused this annual report to be signed on its behalf by
the undersigned hereunto duly authorized.
GE Interlogix, Inc. 401(k) Plan
By: /s/ RICHARD W. FALCONER
--------------------------------------
Richard W. Falconer
Member of Administrative Committee
Date: July 1, 2002
2
INDEPENDENT AUDITORS' REPORT
The Administrator
GE Interlogix, Inc. 401(k) Retirement Plan:
We have audited the accompanying statement of net assets available for benefits
of GE Interlogix, Inc. 401(k) Retirement Plan (formerly Interlogix, Inc. 401(k)
Retirement Plan) (the "Plan") as of December 31, 2001, and the related statement
of changes in net assets available for benefits for the year then ended. 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 audit.
We conducted our audit in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of GE Interlogix,
Inc. 401(k) Retirement Plan as of December 31, 2001, and the changes in net
assets available for benefits for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
Our audit was performed for the purpose of forming an opinion on the basic 2001
financial statements taken as a whole. The supplemental schedule H, line 4i -
schedule of assets (held at end of year) as of December 31, 2001 is presented
for the purpose of additional analysis and is not a required part of the basic
financial statements but is supplementary information required by the Department
of Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. This supplemental schedule is the
responsibility of the Plan's management. The supplemental schedule has been
subjected to the auditing procedures applied in the audit of the basic 2001
financial statements and, in our opinion, is fairly stated in all material
respects in relation to the basic 2001 financial statements taken as a whole.
/s/ KPMG LLP
Austin, Texas
July 1, 2002
3
[THIS IS A COPY OF A PREVIOUSLY ISSUED ARTHUR ANDERSEN LLP REPORT AND HAS NOT
BEEN REISSUED BY ARTHUR ANDERSEN LLP.]
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Administrator of
Interlogix, Inc. 401(k) Retirement Plan:
We have audited the accompanying statements of net assets available for benefits
of Interlogix, Inc. 401(k) Retirement Plan (the Plan) (previously SLC
Technologies, Inc. 401(k) Plan) as of December 31, 2000 and 1999, and the
related statement of changes in net assets available for benefits for the year
ended December 31, 2000. In our report dated September 29, 2000, we expressed a
disclaimer of opinion on the statement of net assets available for benefits as
of December 31, 1999 (the 1999 financial statement), because the administrator,
as permitted by the Department of Labor's Rules and Regulations, instructed us
not to audit the information certified by the trustee. This report on the 1999
financial statement reflects having performed sufficient audit procedures to
render an opinion on the 1999 financial statement. Accordingly, our present
opinion on the 1999 financial statement, as presented herein, is unqualified.
These financial statements and the supplemental schedule referred to below are
the responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements and the supplemental schedule based on our
audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as of
December 31, 2000 and 1999, and the changes in net assets available for benefits
for the year ended December 31, 2000, in conformity with accounting principles
generally accepted in the United States.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule of assets (held
at end of year) as of December 31, 2000, is presented for the purpose of
additional analysis and is not a required part of the basic financial statements
but is supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Security
Act of 1974, as amended (ERISA). The supplemental schedule has been subjected to
the auditing procedures applied in the audits of the basic financial statements
and, in our opinion, is fairly stated in all material respects in relation to
the basic financial statements taken as a whole.
Arthur Andersen LLP
Austin, Texas
June 22, 2001
4
GE INTERLOGIX, INC. 401(k) RETIREMENT PLAN
Statements of Net Assets Available for Benefits
December 31, 2001 and 2000
2001 2000
------------ ------------
Assets:
Investments, at fair value:
Investments in mutual funds and common stock $ 48,260,058 $ 37,333,757
Guaranteed insurance contracts 908,139 1,053,872
Participant loans 1,963,797 1,771,272
------------ ------------
51,131,994 40,158,901
------------ ------------
Receivables:
Due from broker for securities sold -- 10,464,932
Employees' 310,079 455,064
Employer's 200,306 259,500
------------ ------------
Net assets available for benefits $ 51,642,379 $ 51,338,397
============ ============
See accompanying notes to financial statements.
5
GE INTERLOGIX, INC. 401(k) RETIREMENT PLAN
Statements of Changes in Net Assets Available for Benefits
Years ended December 31, 2001 and 2000
2001 2000
------------ ------------
Additions (reductions) to net assets attributed to:
Investment income:
Interest income $ 462,652 132,515
Net depreciation in fair value of investments (3,444,775) (3,546,820)
------------ ------------
(2,982,123) (3,414,305)
Contributions:
Employees 6,304,893 5,092,328
Employer's 1,829,246 1,506,975
------------ ------------
8,134,139 6,599,303
Transfers from affiliated plans -- 13,107,782
------------ ------------
Total additions 5,152,016 16,292,780
Deductions from net assets attributed to:
Benefits paid 4,848,034 4,791,654
------------ ------------
Net increase 303,982 11,501,126
Net assets available for benefits:
Beginning of year 51,338,397 39,837,271
------------ ------------
End of year $ 51,642,379 51,338,397
============ ============
See accompanying notes to financial statements.
6
GE INTERLOGIX, INC. 401(k) RETIREMENT PLAN
Notes to Financial Statements
December 31, 2001 and 2000
1. Description of the Plan
The following description of the GE Interlogix, Inc. 401(k) Retirement Plan
(formerly Interlogix, Inc. 401(k) Retirement Plan (Note 6)) (the "Plan"), a
defined contribution plan, sponsored by General Electric Company (formerly
Interlogix, Inc.) (Note 6)) (the "Company" or "Employer" or "Plan
administrator"), is provided for general information purposes only. The Plan is
subject to applicable provisions of the Employee Retirement Income Security Act
of 1974, as amended ("ERISA"). Any employee of the Company who has attained the
required ERISA age is eligible to participate in the Plan on the first day of
the month after the employee's three-month anniversary. The Company has entered
into an agreement with New York Life Trust Company who acts as the trustee and
record keeper of the Plan's assets. Participants should refer to the Plan
document for complete information regarding the Plan's definitions, benefits,
eligibility and other matters.
Mergers and Related Amendments
On May 2, 2000, the Plan sponsor, SLC Technologies, Inc., merged with ITI
Technologies, Inc. ("ITI"), and the combined company was renamed Interlogix,
Inc. Effective July 1, 2000, the Plan was amended to reflect the Plan sponsor as
Interlogix, Inc., and effective September 1, 2000, the Plan was amended and
renamed the Interlogix, Inc. 401(k) Retirement Plan (previously the SLC
Technologies, Inc. 401(k) Plan). Effective December 31, 2000, the Interactive
Technologies, Inc. 401(k) Investment Plan was merged into the Plan (the "ITI
Plan merger"), and the Caddx Controls, Inc. 401(k) Profit Sharing Plan was also
merged into the Plan. All balances invested in mutual funds and money market
funds were liquidated as of December 31, 2000, and then merged into similar
investment options within the Plan. Balances invested in participant loans,
guaranteed insurance contracts and ITI/Interlogix, Inc. common stock were
transferred in-kind to the Plan.
Contributions
Each year, participants may contribute from 1 percent to 20 percent of their
pretax annual compensation, as defined by the Plan. Participants may also
contribute amounts representing distributions from other qualified plans.
Matching contributions by the Company for the benefit of participants are
discretionary. For 2001 and 2000, Company matching contributions were equal to
50 percent of each participant's contributions, up to 6 percent. The Company
also has the option to make a discretionary profit-sharing contribution to the
Plan, which is allocated to participants based on the participants' relative
compensation as defined by the Plan. During 2001 and 2000, the Company did not
make a discretionary profit-sharing contribution to the Plan.
Participant Accounts
Participants direct the investment of their contributions among mutual funds, a
money market fund and the Company's common stock (formerly Interlogix, Inc.
common stock (Note 6)). The allocation of a participant's contributions to these
investment funds is selected by the participant and may be changed daily. Each
participant's account is credited with the participant's contributions and share
of Company matching contributions, if any. Allocation of investment income is
based on the value of the participant's account at the close of each day.
Investments in guaranteed insurance contracts represent investments that were
transferred to the Plan in conjunction with the ITI Plan merger.
7
GE INTERLOGIX, INC. 401(k) RETIREMENT PLAN
Notes to Financial Statements
December 31, 2001 and 2000
Vesting
Participants are vested immediately in their contributions, Company
contributions (except as noted below) and related net investment earnings.
Forfeitures of non-vested employer matching contributions are used to reduce
future employer matching contributions. At December 31, 2001, forfeited
non-vested accounts totaled approximately $19,000 and approximately $79,000 of
forfeitures were used to reduce employer contributions during 2001. Balances
transferred prior to 2000 into the Plan from the Aritech Corporation Employee
Stock Ownership Plan vest as follows:
Years of Service Vested Percentage
---------------- -----------------
Less than 3 years 0%
3 years but less than 4 20
4 years but less than 5 40
5 years but less than 6 60
6 years but less than 7 80
7 years and thereafter 100
Participant Loans
A participant may borrow from his or her fund account a minimum of $500 up to a
maximum equal to the lesser of $50,000 or 50 percent of the participant's
account balance reduced by the highest outstanding loan balance in the
participant's account during the prior 12-month period. Loan terms range from
one to five years or up to 15 years for the purchase of a primary residence. The
loans are secured by the balance in the participant's account and bear interest
at a rate commensurate with prevailing rates as determined by the Plan
administrator. Interest rates range from 5.75 percent to 12 percent on loans
outstanding at December 31, 2001 and 8.75 percent to 12 percent on loans
outstanding at December 31, 2000. Principal and interest is paid ratably through
monthly payroll deductions.
Payment of Benefits
Distributions to participants may be made upon death, retirement or termination
of employment. Participants may elect payment in a lump sum or in the form of an
annuity as described in the Plan document. Distributions are also permitted for
reasons of proven financial hardship as outlined in the Plan document.
Participant benefit payments may be subject to federal income tax.
2. Summary of Significant Accounting Policies
(a) Basis of Accounting
The accompanying financial statements have been prepared using the accrual basis
of accounting.
(b) Investment Valuation and Income Recognition
The Plan's investments are stated at fair value. Quoted market prices are used
to value investments in common stock. Shares of mutual funds are valued at the
net asset value of shares held by the Plan at year-end. Purchases and sales of
securities are recorded on a trade-date basis. Participant loans are valued at
the unpaid principal balance, which approximates fair value.
The Plan's guaranteed insurance contracts are not fully benefit-responsive and
are valued at fair value, which approximates contract value. Contract value
represents contributions made under the contract, plus earnings, less
participant withdrawals and administrative expenses.
8
GE INTERLOGIX, INC. 401(k) RETIREMENT PLAN
Notes to Financial Statements
December 31, 2001 and 2000
(c) Net Depreciation in Fair Value of Investments
In the statements of changes in net assets available for benefits, the Plan
presents the net depreciation in the fair value of its investments which
consists of realized gains or losses and the unrealized appreciation
(depreciation) on those investments.
(d) Plan Expenses
The Company pays all Plan administrative expenses.
(e) Payment of Benefits
Benefit payments are recorded when paid.
(f) Use of Estimates
The preparation of the Plan's financial statements in conformity with accounting
principles generally accepted in the United States of America requires the Plan
administrator to make estimates and assumptions that affect the reported amounts
of net assets available for benefits at the date of the financial statements and
the changes in net assets available for benefits during the reporting period
and, when applicable, disclosures of contingent assets and liabilities at the
date of the financial statements. Actual results could differ from those
estimates.
(g) Risks and Uncertainties
The Plan provides for investments in mutual funds, a money market fund and
Company common stock (formerly Interlogix, Inc. common stock (Note 6)).
Investment securities are exposed to various risks including, but not limited
to, interest rate, market and credit risks. Due to the level of risk associated
with certain investment securities, it is at least reasonably possible that
changes in the values of investment securities will occur in the near term.
(h) Reclassifications
Certain reclassifications have been made to the 2000 financial statement
presentation to conform to the 2001 presentation.
9
GE INTERLOGIX, INC. 401(k) RETIREMENT PLAN
Notes to Financial Statements
December 31, 2001 and 2000
3. Investments
The following table presents investments as of December 31, 2001 and 2000.
Investments that represent 5 percent or more of the Plan's net assets are
separately identified, with the exception of Interlogix, Inc. common stock (Note
6) and New York Life Trust Company ("NYL") investments which are separately
identified as party-in-interest transactions.
December 31,
2001 2000
------------- -------------
INVESTMENTS AT FAIR VALUE AS DETERMINED BY QUOTED
MARKET PRICE
Interlogix, Inc. common stock, 61,774 and 58,427
shares, respectively* $ 2,388,801 $ 1,102,809
------------- -------------
INVESTMENTS AT FAIR VALUE AS DETERMINED BY NET ASSET
VALUE OF SHARES HELD BY THE PLAN AT YEAR END
Eclipse Money Market Fund, 6,763,564 shares (NYL)* 6,763,564 --
Mainstay Money Market Fund, 3,368,957 shares (NYL)* -- 3,368,957
Mainstay High Yield Corporate Bond Fund, 312,876 and 267,669
shares, respectively (NYL)* 1,739,588 1,632,778
Eclipse Indexed Equity Fund, 165,632 shares (NYL)* 4,362,744 --
Mainstay Indexed Equity Fund, 68,650 shares (NYL)* -- 2,189,247
Dodge and Cox Balanced Fund, 135,042 and 73,682 shares,
respectively 8,834,448 4,672,890
American Century Equity Growth Fund, 332,704 and 385,442
shares, respectively 6,401,231 8,391,066
PIMCO Total Return Fund, 247,078 and 104,491 shares,
respectively** 2,584,438 1,085,659
Janus Fund, 394,135 and 320,974 shares, respectively 9,695,715 10,685,212
Janus Overseas Fund, 156,306 and 139,688 shares, respectively 3,173,020 3,707,306
Other 2,316,509 497,833
------------- -------------
45,871,257 36,230,948
------------- -------------
Total investments in mutual funds and common stock 48,260,058 37,333,757
INVESTMENTS AT CONTRACT VALUE
Other 908,139 1,053,872
INVESTMENTS AT FAIR VALUE AS DETERMINED BY UNPAID PRINCIPAL BALANCE
Other 1,963,797 1,771,272
------------- -------------
Total investments $ 51,131,994 $ 40,158,901
============= =============
* Denotes party-in-interest.
** 2000 amount does not exceed 5 percent of net assets but is shown for
comparative purposes only.
During 2001 and 2000, the Plan's investments (including investments bought,
sold, and held during the year) appreciated (depreciated) in value as follows:
December 31,
2001 2000
------------- -------------
INVESTMENTS AT FAIR VALUE AS DETERMINED BY QUOTED
MARKET PRICE
Interlogix, Inc. common stock $ 1,433,846 $ 3,033
INVESTMENTS AT FAIR VALUE AS DETERMINED BY NET ASSET
VALUE OF SHARES HELD BY THE PLAN AT YEAR END
Mutual Funds (4,878,621) (3,549,853)
------------- -------------
Net change in fair value $ (3,444,775) $ (3,546,820)
============= =============
4. Tax Status
The Internal Revenue Service has determined and informed the Plan administrator
by a letter dated August 16, 1995, that the Plan and related trust are designed
in accordance with applicable sections of the Internal Revenue Code (the "IRC").
The Plan has been amended since receiving the determination letter. However, the
Plan administrator believes that the Plan is designed and is currently being
operated in compliance with the applicable requirements of the IRC.
5. Plan Termination
Although it has not expressed any intent to do so, the Company has the right
under the Plan to discontinue its contributions at any time and to terminate the
Plan subject to the provisions of ERISA. In the event of Plan termination,
participants remain 100 percent vested in their accounts.
6. Subsequent Event
In February 2002, Interlogix, Inc. was purchased by the Company. Effective
February 21, 2002, the Plan was amended to reflect the Plan sponsor as the
Company and the Plan was amended and renamed the GE Interlogix, Inc. 401(k)
Retirement Plan. All participant balances in the Interlogix, Inc. Stock Fund
were converted into the General Electric Company Stock Fund.
10
GE INTERLOGIX, INC. 401(k) RETIREMENT PLAN
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
As of December 31, 2001
Identity of Issue Description of Investment
----------------- -------------------------
Interlogix, Inc.* (see Note 6 to the financial statements) Interlogix, Inc. common stock
New York Life Funds-
New York Life Trust Company* Eclipse Money Market Fund
New York Life Trust Company* Mainstay High Yield Corporate Bond Fund
New York Life Trust Company* Eclipse Indexed Equity Fund
Dodge & Cox Dodge & Cox Balanced Fund
American Century American Century Equity Growth Fund
PIMCO Funds PIMCO Total Return Fund
PIMCO Funds PIMCO Small Cap Value Fund
Franklin Group of Funds Franklin Small-Mid Cap Growth Fund
Janus Janus Fund
Janus Janus Overseas Fund
Guaranteed insurance contracts-
American Life and Casualty Insurance Company*** American Life and Casualty Insurance Company Guaranteed Insurance
Contract, #ON890313, 4.0%, maturing April 1, 2019
Bradford National Life Insurance Company**** Bradford National Life Insurance Company Guaranteed Insurance Contract,
#90002645, 4.0%, maturing January 28, 2044
Massachusetts General Life Insurance Company*** Massachusetts General Life Insurance Company Guaranteed Insurance
Contract, #10GA001586, 5.8%, maturing January 29, 2015
Massachusetts General Life Insurance Company*** Massachusetts General Life Insurance Company Guaranteed Insurance
Contract, #10GA009835, 4.0%, maturing March 23, 2022
Massachusetts General Life Insurance Company*** Massachusetts General Life Insurance Company Guaranteed Insurance
Contract, #10GA006548, 4.2%, maturing January 29, 2014
GE Interlogix, Inc. 401(k) Retirement Plan* Participant loans at interest rates from 5.75% to 12%
(see Note 6 to the financial statements)
Total investments
Number Market
Identity of Issue of Shares Cost Value
----------------- --------- ----------- ---------
Interlogix, Inc.* 61,774 $ ** $ 2,388,801
New York Life Funds-
New York Life Trust Company* 6,763,564 ** 6,763,564
New York Life Trust Company* 312,876 ** 1,739,588
New York Life Trust Company* 165,632 ** 4,362,744
Dodge & Cox 135,042 ** 8,834,448
American Century 332,704 ** 6,401,231
PIMCO Funds 247,078 ** 2,584,438
PIMCO Funds 86,106 ** 1,683,363
Franklin Group of Funds 20,313 ** 633,146
Janus 394,135 ** 9,695,715
Janus 156,306 ** 3,173,020
Guaranteed insurance contracts-
American Life and Casualty Insurance Company
** 99,207
Bradford National Life Insurance Company
** 182,556
Massachusetts General Life Insurance Company
** 263,592
Massachusetts General Life Insurance Company
** 139,218
Massachusetts General Life Insurance Company
** 223,566
GE Interlogix, Inc. 401(k) Retirement Plan* ** 1,963,797
------------
Total investments $ 51,131,994
============
*Denotes party in interest.
**Cost omitted for participant-directed investments.
***This contract was owned by Conseco Life Insurance Company as of
December 31, 2001.
****This contract was owned by American Founders Life Insurance
Company as of December 31, 2001.
See accompanying independent auditors' report.
11
INDEX TO EXHIBITS
EXHIBIT
NUMBER DESCRIPTION
------- -----------
23.1 Consent of KPMG LLP
23.2 Notice regarding consent of Arthur Andersen LLP