e11vk
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Year Ended December 31, 2009
Commission file number: 0-1424
A. Full title of the plan and the address of the plan, if different from that of the issuer named
below:
ADC Telecommunications, Inc.
Retirement Savings Plan
B. |
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Name of issuer of securities held pursuant to the plan and the address of its principal
executive offices: |
ADC Telecommunications, Inc.
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Minnesota
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41-0743912 |
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.) |
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13625 Technology Drive
Eden Prairie, Minnesota
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55344 |
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(Address of principal executive offices)
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(Zip Code) |
Issuers telephone number, including area code: (952) 938-8080
ADC Retirement Savings Plan
Financial Statements and Schedule
Years Ended December 31, 2009 and 2008
Contents
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Report of Independent Registered Public Accounting Firm |
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1 |
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Financial Statements |
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Statements of Net Assets Available for Benefits |
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2 |
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Statements of Changes in Net Assets Available for Benefits |
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3 |
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Notes to Financial Statements |
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4 |
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Schedule |
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Schedule H, Line 4i Schedule of Assets (Held at End of Year) |
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13 |
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Report of Independent Registered Public Accounting Firm
To the Plan Administrator and Participants
ADC Telecommunications, Inc. Retirement Savings Plan
Eden Prairie, Minnesota
We have audited the accompanying statement of net assets available for benefits of the ADC
Telecommunications, Inc. Retirement Savings Plan (the Plan) as of December 31, 2009, 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 Plans management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight
Board (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. We
were not engaged to perform an audit of the Plans internal control over financial reporting. Our
audit included consideration of internal control over financial reporting as a basis for designing
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Plans internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, 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 2009 financial statements present fairly, in all material respects, the net
assets available for benefits of the Plan as of December 31, 2009, and the changes in its 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 conducted 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,
2009, 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 Labors Rules
and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. This schedule is the responsibility of the Plans management. Such schedule has been
subjected to the auditing procedures applied in the audit of the basic 2009 financial statements
and, in our opinion, is fairly stated in all material respects when considered in relation to the
basic financial statements taken as a whole.
Wipfli LLP
June 22, 2010
7601 France Ave S, Suite 400
Minneapolis, Minnesota 55435
1
ADC Retirement Savings Plan
Statements of Net Assets Available for Benefits
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December 31 |
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2009 |
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2008 |
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Assets |
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Cash and cash equivalents |
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$ |
1,932 |
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$ |
44,975 |
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Investments, at fair value |
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236,889,259 |
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198,215,313 |
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Employer contributions receivable |
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404,255 |
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386,464 |
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Employee contributions receivable |
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235,486 |
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Total assets |
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237,530,932 |
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198,646,752 |
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Liabilities |
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Excess Contributions |
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550,000 |
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Net assets available for benefits at fair value |
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236,980,932 |
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198,646,752 |
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Adjustment from fair value to contract value
for fully benefit-responsive investment
contracts |
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(1,304,433 |
) |
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Net assets available for benefits |
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$ |
235,676,499 |
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$ |
198,646,752 |
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See accompanying notes.
2
ADC Retirement Savings Plan
Statements of Changes in Net Assets Available for Benefits
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Year Ended December 31 |
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2009 |
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2008 |
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Net assets available for benefits at beginning of year |
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$ |
198,646,752 |
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$ |
289,330,503 |
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Increases (decreases) during the year: |
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Employee contributions: |
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Employee payroll contributions |
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11,408,712 |
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13,617,130 |
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Employee rollover contributions |
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189,577 |
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530,273 |
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Total employee contributions |
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11,598,289 |
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14,147,403 |
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Employer contributions |
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4,227,145 |
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4,497,527 |
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Investment
income net |
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3,760,237 |
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5,256,464 |
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Net
realized/unrealized appreciation/(depreciation) in fair value of investments |
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37,976,846 |
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(92,137,294 |
) |
Benefit distributions to participants |
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(24,860,202 |
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(22,438,894 |
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Corrective distributions |
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(126,990 |
) |
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(8,957 |
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Transfers into plan |
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4,454,422 |
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Net increases/(decreases) during the year |
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37,029,747 |
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(90,683,751 |
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Net assets available for benefits at end of year |
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$ |
235,676,499 |
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$ |
198,646,752 |
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See accompanying notes.
3
ADC Retirement Savings Plan
Notes to Financial Statements
December 31, 2009
1. Plan Description
General
The ADC Retirement Savings Plan (the Plan) is a defined contribution plan covering substantially
all domestic employees of ADC Telecommunications, Inc. (ADC or the Company). The Plan is subject to
the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). The following is not
a comprehensive description of the Plan and, therefore, does not include all situations and
limitations covered by the Plan. Participants should refer to the plan document for more complete
information.
Plan Operations
Wachovia Retirement Services provides record-keeping services to the Plan, and Wachovia Bank, N.A.
(the Trustee) is the trustee. Wachovia Corporation was purchased by Wells Fargo & Company on
December 31, 2008. ADC is the plan sponsor. The Trustee is responsible for holding investment
assets of the Plan, executing investment transactions, and making disbursements to participants.
All audit, legal, and plan administration-related expenses are paid by the Company except for
investment management fees, which are netted against investment income. During 2009 and 2008, the
Company paid $451,590 and $221,984, respectively, in expenses related to the Plan.
Merger
ADC acquired LGC Wireless, Inc. (LGC) on November 30, 2007. LGC adopted the Plan effective January
1, 2008. The ADC Retirement Committee ratified its adoption and recognized service credited under
the LGC Wireless, Inc. 401(k) Plan (the LGC Plan) as service under the Plan. All contributions
from employees of LGC for payrolls dated on or after January 1, 2008, have been deposited to the
Plan. The LGC Plan was merged into the Plan on July 7, 2009. Assets of the LGC Plan of $4,454,422,
comprised of investments of $3,852,504, a guaranteed annuity contract of $512,208, and loans of
$89,710, were transferred on that date.
Eligibility
Employees in recognized employment, as defined in the Plan, may generally contribute to the Plan
immediately. Company contributions commence following one year of service, as defined by the Plan.
Effective January 1, 2009, the Plan implemented automatic enrollment for eligible participants.
Participants are enrolled with a default contribution rate of 3%, and contributions are allocated
to the investments determined by the participant. If the participant does not elect specific
investments, the default investment will be a life cycle mutual fund tied to the participants
anticipated retirement date.
Contributions and Vesting
Under the provisions of the Plan, participants classified as highly compensated employees may elect
to make contributions from 1% to 15% of their eligible pretax earnings, and participants classified
as non-highly-compensated employees may elect to make contributions from 1% to 50% of their
eligible pretax
4
earnings. The Company matches 50% of an eligible participants contributions, up to
the first 6% of eligible compensation, for a maximum company contribution of 3%. The Company may
also make a discretionary performance match contribution. No discretionary performance match
contributions were made for the years ended December 31, 2009 and 2008. All amounts credited to the
accounts of
participants for employer and employee contributions are fully vested and are subject to Internal
Revenue Service (IRS) limitations.
Each participants account is credited with the participants contribution, the matching company
contribution, discretionary performance match contributions, and the plan earnings (losses) that
are allocated based on the balances in the underlying investment funds. The benefit to which a
participant is entitled is the benefit that can be provided from the participants vested account.
A 20% limit is applied to new contributions and transfers to the ADC Stock Fund of the Plan.
Transfers are allowed until the participants balance in the ADC Stock Fund reaches 20% of the
participants total account. If the participants ADC Stock Fund balance is at or over this 20%
limit, no additional transfers may be made into the ADC Stock Fund. An independent fiduciary,
Independent Fiduciary Services, oversees the ADC Stock Fund.
Transition Contributions
Upon the termination of the ADC Telecommunications, Inc. Pension Plan (the Pension Plan) on January
5, 1998, the Plan was amended to provide an annual transition contribution to participants who met
either the Rule of 55 or the Rule of 60 as of December 31, 1997, and were credited with at least 10
years of service in the Pension Plan as of that date. A participant meets the Rule of 60 if the sum
of the participants age and years of vesting service under the Pension Plan as of December 31,
1997, equaled 60 or more. A participant meets the Rule of 55 if the sum of the participants age
and vesting service under the Pension Plan as of December 31, 1997, equaled at least 55 but less
than 60.
Annual contributions for participants who meet the Rule of 55, range from 0% to 6% of their
recognized compensation for the plan year and are determined based on
their age as of December 31 of the plan year. Annual contributions for participants who meet the Rule of 60 range
from 0% to 9% of their recognized compensation for the plan year and are determined based on their
age as of December 31 of the plan year. Eligible participants who terminate prior to December 31 of
a plan year are credited with a partial-year contribution based on their age on the preceding
January 1 and their recognized compensation from January 1 until the last day of the month in which
their employment is terminated. For the years ended December 31, 2009 and 2008, transition
contributions included in employer contributions were $380,297 and $386,464, respectively.
Distributions
Those participants whose employment terminates are entitled to receive 100% of their account
balances.
Participant Loans
Generally, a participant who is actively employed by ADC may obtain a loan of a minimum of $1,000
and up to the lesser of one half of the participants account balance or $50,000. The loan must be
repaid with interest at 1% above the prime rate within 5 years, with the exception of residential
loans, which must be repaid in 15 years. At December 31, 2009, outstanding participant loans had
rates ranging from 4.25% to 10%. Participants repay loans through payroll deductions.
5
As participant loan repayments are received, they are immediately invested in the investment
fund(s) in accordance with that participants investment allocation election for current
contributions.
Age 59 1/2 Withdrawal
Generally, participants who have attained age 59 1/2 or over may withdraw up to 100% of their
account balances.
Hardship Withdrawal
Employed participants under age 59 1/2 are subject to hardship limits established by the IRS on
withdrawals from employee contributions and roll-overs.
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 terminate the Plan, subject to the provisions set
forth in ERISA. In the event of the Plans termination, the participants shall receive 100% of
their account balances.
2. Significant Accounting Policies
Basis of Accounting
The accompanying financial statements have been prepared on the accrual basis of accounting.
The Plan invests in investment contracts through a common trust fund. Contract value for this
common trust fund is based on the net asset value of the fund as reported by the investment
advisor. Common collective trust funds held by a defined contribution plan are required to be
reported at fair value. However, contract value is the relevant measurement attribute for that
portion of the net assets available for benefits of a defined contribution plan attributable to
fully benefit-responsive investment contracts because contract value is the amount participants
would receive if they were to initiate permitted transactions under the terms of the Plan. The
Statement of Net Assets Available for Benefits presents the fair value of the common trust as well
as the adjustment of the investment in the common trust from fair value to contract value related
to the investment contracts. The Statement of Changes in Net Assets Available for Benefits is
prepared on a contract value basis.
Valuation of Investments
Investments held by the Plan are stated at fair value. Fair value is defined as the price that
would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date (an exit price). See Note 6 for further discussion of fair value
measurements. Changes in the fair value of investments between years are included in net
realized/unrealized appreciation/(depreciation) appreciation in fair value of investments in the
accompanying statements of changes in net assets available for benefits. Purchases and sales of
securities are recorded on a trade-date basis.
6
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets,
liabilities, and changes therein, and disclosure of contingent assets and liabilities. Actual
results could differ from those estimates.
New Accounting Pronouncements
Fair Value Disclosures
Effective January 1, 2008, the Plan adopted the provisions of Financial Accounting Standards Board
(FASB) ASC Topic 820, Fair Value Measurements and Disclosures, which provides enhanced guidance
for using fair value to measure assets and liabilities. The standard applies whenever other
standards require (or permit) assets or liabilities to be measured at fair value. The standard does
not expand the use of fair value in any new circumstances. The adoption of ASC Topic 820 had no
material impact on the Plans net assets available for benefits or the change in net assets
available for benefits.
In April and September 2009, the FASB issued guidance which (i) provided additional guidance for
estimating fair value when the volume and level of activity for the asset or liability have
significantly decreased, (ii) provided guidance on identifying circumstances that indicate a
transaction is not orderly, (iii) expanded the required disclosures about fair value measurements.
The adoption of this guidance did not have a material effect on the Plans net assets available for
benefits or the change in net assets available for benefits.
In January 2010, the FASB issued guidance which expanded the required disclosures about fair value
measurements. In particular, this guidance requires (i) separate disclosure of the amounts of
significant transfer in and out of Level 1 and Level 2 fair value measurements along with the
reasons for such transfer, (ii) information about purchases, sales, issuances and settlements to be
presented separately in the reconciliation for Level 3 fair value measurements, (iii) fair value
measurement disclosures for each class of assets and liabilities and (iv) disclosures about the
valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair
value measurements for fair value measurements that fall in either Level 2 or Level 3. This
guidance is effective for annual reporting periods beginning after December 15, 2009. The Company
is currently evaluating the impact that adoption of this guidance will have on the Plans financial
statement disclosures.
FASB Codification
In June 2009, the FASB issued new codification standards which represent the source of
authoritative U.S. generally accept accounting principles (GAAP) recognized by the FASB to be
applied by non-governmental entities. Rules and interpretive releases of the Securities and
Exchange Commission (SEC) under authority of federal securities laws are also sources of
authoritative GAAP for SEC registrants. The codification supersedes all non-SEC accounting and
reporting standards which existed
prior to the codification . All other non-grandfathered, non-SEC accounting literature not
included in the codification is non-authoritative. The new codification standards were effective
for 2009.
7
3. Investments
Upon
enrollment in the Plan, a participant may direct employee and employer contributions in any of 21 investment options.
The Plan invests in various investment securities. Investment securities are exposed to various
risks, such as 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 value of
investment securities will occur in the near term and that such changes could materially affect a
participants account balance and the amounts reported in the statements of net assets available
for benefits.
The fair market value of individual investments that represent 5% or more of the Plans net assets
as of December 31 is as follows:
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2009 |
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2008 |
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RiverSource Trust Stable Capital II Fund |
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$ |
44,028,970 |
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47,335,003 |
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Vanguard Mid Cap Index Fund |
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29,996,441 |
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21,925,184 |
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MFS Institutional International Equity Fund |
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29,928,773 |
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|
|
23,091,167 |
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Dodge and Cox Balanced Fund |
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25,829,474 |
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21,566,615 |
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American Century Income and Growth Fund |
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22,164,603 |
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20,918,502 |
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During 2009 and 2008, the Plans investments, including investments purchased and sold, as well as
held during the year, appreciated (depreciated) in fair value as follows:
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Year Ended December 31 |
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2009 |
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2008 |
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Net realized/unrealized (depreciation) appreciation
in fair value of investments: |
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Mutual funds |
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$ |
33,064,362 |
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$ |
(72,431,891 |
) |
Common collective trust funds |
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3,609,291 |
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(2,874,455 |
) |
Common stock |
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1,303,193 |
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(16,830,948 |
) |
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$ |
37,976,846 |
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$ |
(92,137,294 |
) |
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4. Income Tax Status
The Plan has received a determination letter from the Internal Revenue Service dated August 4,
2009, stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code (the
Code), and therefore, the related trust is exempt from taxation. Subsequent to the issuance of this
determination letter, the Plan was amended. Once qualified, the Plan is required to operate in
conformity with the Code to
maintain its qualification. The plan sponsor has indicated that it will take the necessary steps,
if any, to bring the Plans operations into compliance with the Code.
8
5. Investment Contract with Insurance Company
On July 7, 2009, in conjunction with the merger of the LGC Plan with the Plan (see Note 1, Merger),
the Guaranteed Portfolio Fund, a separate account under the group annuity policy between the LGC
Plan and Great-West, was transferred to the Plan. Under the terms of the policy, Great-West
elected to apply a hold on the Guaranteed Portfolio Fund for 12 months from the date the asset was
transferred to the Plan, which was July 7, 2009.
LGC Plan participants were notified regarding the put on the Guaranteed Portfolio Fund and the
impact on participants regarding accessibility to the fund from the commencement of the merger
blackout period (June 29, 2009) through the 12 month hold period (July 5, 2010). During this
timeframe, the Great-West Guaranteed Portfolio fund holdings will not be accessible by the
participants for in-service withdrawals, loans, or fund transfers. Terminated participants will be
able to take full distributions. Prior to the commencement of the merger blackout, participants
invested in the Guaranteed Portfolio Fund had the option of transferring assets from the Fund to
any other Fund in the LGC Plan investment menu, none of which had restrictions regarding
accessibility upon merger into the Plan.
Under the terms of the agreement between the Plan and Great-West, the contributions are maintained
in a general account. The account is credited with earnings on the underlying investments and
charged for participant withdrawals and transaction fees. The contract is included in the
financial statements at contract value as reported to the Plan by Great-West. Contract value
represents contributions made under the contract, plus earnings, less participant withdrawals and
administrative expenses.
There are reserves against contract value for credit risk of the contract issuer or otherwise. The
crediting interest rate is based on a formula agreed upon with the issuer, but may not be less than
0%.
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Average Yield |
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2009 Percentage |
Based on actual earnings |
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2.80% |
Based on interest rate credited to participants |
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2.80% |
6. Fair Value Measurements
FASB ACS Topic 820, Fair Value Measurements and Disclosures, establishes a framework for measuring
fair value. That framework provides a fair value hierarchy that prioritizes the inputs to
valuation techniques used to measure fair value. The hierarchy gives the highest priority to
unadjusted quoted prices in active markets for identical assets or liabilities (Level 1
measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three
levels of the fair value hierarchy under ACS Topic 820 are described below:
Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or
liabilities in active markets that the Plan has the ability to access.
Level 2 Inputs to the valuation methodology include:
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Quoted prices for similar assets or liabilities in active markets. |
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Quoted prices for identical or similar assets or liabilities in inactive markets. |
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Inputs other than quoted prices that are observable for the asset or
liability. |
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Inputs that are derived principally from or corroborated by observable
market data by correlation or other means. |
9
If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.
Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
The assets or liabilitys fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.
Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2009 and 2008.
Cash and cash equivalents: Valued at balance in account, which approximates fair value.
Common stock: Valued at the closing price reported on the active market on which the individual securities are traded.
Mutual funds and money market funds: Mutual funds are valued at the net asset value (NAV) of shares held by the plan at year end. Money market funds are valued at amortized cost, which approximate fair value.
Common collective trust funds:
RiverSource Total Equity Index Fund I: Valued at NAV of shares held by the plan at year-end, which is based primarily on quoted market prices of the underlying investments.
RiverSource Trust Stable Capital Fund II: Valued based on the underlying unit value reported by RiverSource Trust Stable Capital Fund I, which invests in book value investment contracts (BVCs). BVCs are comprised of both investment and contractual components. The investment component is wrapped by contracts (Wrapper Agreements) issued by third-party financial institutions. Collective investment
fund holdings are valued at the redemption value of the underlying fund. Debt obligations exceeding 60 days to maturity are valued by an independent pricing service which employs methodologies that utilize actual market transactions, broke-dealer supplied valuations or other formula-driven valuation techniques. Debt obligations with 60 days or less remaining to maturity may be valued at their amortized cost, which approximates market value, Wrapper Agreements are valued
at replacement cost. There is no active trading market for Wrapper Agreements, therefore they are considered illiquid. In performing fair value determination of the wrapper agreements, Ameriprise Trust Company considers the creditworthiness and the ability of the wrapper provider to pay amounts due under the wrapper agreements.
Participant loans: Valued at the participants outstanding loan balance, which approximates fair value.
Insurance company general accounts The fair value of the guaranteed investment contract is valued by Great-West Retirement Services and represents contributions made under the contract, plus interest, less transaction fees. Participant-initiated benefit-responsive Plan withdrawals from the Guaranteed Portfolio Fund are transacted at contract value. The contracts Guaranteed Portfolio Fund has no
liquid market value because it is not tradable or assignable, and there are no defined maturities of cash flow; therefore, the contract value of the Guaranteed Portfolio Fund approximates fair value.
10
The methods described above may produce a fair value calculation that may not be indicative of
net realizable value or reflective of future fair values. Furthermore, while the Plan believes its
valuation methods are appropriate and consistent with other market participants, the use of
different methodologies or assumptions to determine the fair value of certain financial instruments
could result in a different fair value measurement at the reporting date.
The following tables sets forth by level, within the fair value hierarchy, the Plans assets at fair
value as of December 31, 2009 and 2008:
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Assets at Fair Value as of December 31, 2009 |
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|
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Level 1 |
|
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Level 2 |
|
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Level 3 |
|
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Total |
|
Cash & cash equivalents |
|
$ |
1,932 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
1,932 |
|
Mutual funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
100,135,677 |
|
|
|
|
|
|
|
|
|
|
|
100,135,677 |
|
Balanced |
|
|
25,829,474 |
|
|
|
|
|
|
|
|
|
|
|
25,829,474 |
|
Fixed income |
|
|
11,330,341 |
|
|
|
|
|
|
|
|
|
|
|
11,330,341 |
|
International equity |
|
|
29,928,773 |
|
|
|
|
|
|
|
|
|
|
|
29,928,773 |
|
Money market funds |
|
|
161,990 |
|
|
|
|
|
|
|
|
|
|
|
161,990 |
|
|
|
|
Total mutual funds |
|
|
167,386,255 |
|
|
|
|
|
|
|
|
|
|
|
167,386,255 |
|
|
|
|
ADC Common stock
Telecommunications |
|
|
9,950,944 |
|
|
|
|
|
|
|
|
|
|
|
9,950,944 |
|
Common collective trusts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common collective trusts Equity |
|
|
10,269,195 |
|
|
|
|
|
|
|
|
|
|
|
10,269,195 |
|
Common collective trusts Fixed
Income |
|
|
|
|
|
|
44,028,970 |
|
|
|
|
|
|
|
44,028,970 |
|
|
|
|
Total common collective trusts |
|
|
10,269,195 |
|
|
|
44,028,970 |
|
|
|
|
|
|
|
54,298,165 |
|
|
|
|
Insurance company guaranteed
portfolio fund |
|
|
|
|
|
|
519,331 |
|
|
|
|
|
|
|
519,331 |
|
Participant loans |
|
|
|
|
|
|
|
|
|
|
4,734,564 |
|
|
|
4,734,564 |
|
|
|
|
Total assets at fair value |
|
$ |
187,608,326 |
|
|
$ |
44,548,301 |
|
|
$ |
4,734,564 |
|
|
$ |
236,891,191 |
|
|
|
|
|
|
|
|
|
|
|
Assets at Fair Value as of December 31, 2008 |
|
|
|
|
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
Cash & cash equivalents |
|
$ |
44,975 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
44,975 |
|
Mutual funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
76,485,058 |
|
|
|
|
|
|
|
|
|
|
|
76,485,058 |
|
Balanced |
|
|
21,566,615 |
|
|
|
|
|
|
|
|
|
|
|
21,566,615 |
|
Fixed income |
|
|
7,778,487 |
|
|
|
|
|
|
|
|
|
|
|
7,778,487 |
|
International equity |
|
|
23,091,167 |
|
|
|
|
|
|
|
|
|
|
|
23,091,167 |
|
Money market funds |
|
|
114,634 |
|
|
|
|
|
|
|
|
|
|
|
114,634 |
|
|
|
|
Total mutual funds |
|
|
129,035,961 |
|
|
|
|
|
|
|
|
|
|
|
129,035,961 |
|
|
|
|
ADC Common stock
Telecommunications |
|
|
9,361,369 |
|
|
|
|
|
|
|
|
|
|
|
9,361,369 |
|
Common collective trusts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common collective trusts Equity |
|
|
7,756,736 |
|
|
|
|
|
|
|
|
|
|
|
7,756,736 |
|
Common collective trusts Fixed
Income |
|
|
|
|
|
|
47,335,003 |
|
|
|
|
|
|
|
47,335,003 |
|
|
|
|
Total common collective trusts |
|
|
7,756,736 |
|
|
|
47,335,003 |
|
|
|
|
|
|
|
55,091,739 |
|
|
|
|
Participant loans |
|
|
|
|
|
|
|
|
|
|
4,726,244 |
|
|
|
4,726,244 |
|
|
|
|
Total assets at fair value |
|
$ |
146,199,041 |
|
|
$ |
47,335,003 |
|
|
$ |
4,726,244 |
|
|
$ |
198,260,288 |
|
|
|
|
11
The table below sets forth a summary of changes in the fair value of the Plans Level 3 assets for
the years ended December 31, 2009 and 2008.
Level 3 Assets
Participant Loans
|
|
|
|
|
|
|
|
|
|
|
2009 |
|
|
2008 |
|
|
|
|
Balance at beginning of year |
|
|
4,726,244 |
|
|
|
4,260,744 |
|
Purchases, sales, transfers,
issuances, and settlements (net) |
|
|
8,320 |
|
|
|
465,500 |
|
|
|
|
Balance at end of year |
|
|
4,734,564 |
|
|
|
4,726,244 |
|
|
|
|
7. Excess Contributions Due to Participants
The Plan failed the discrimination testing for the year ended December 31, 2009. Excess
contributions amounting to $550,000 are recorded as a liability in the accompanying statements of
net assets available for benefits and as a reduction of participant contributions for the year.
The Plan reimbursed these excess contributions to its participants during 2010.
8. Related-Party Transactions
A portion of the Plans assets are held in a money market fund managed by Wachovia Bank, N.A., the
Trustee of the Plan. The balances in this fund at December 31,
2009 and 2008, $161,990 and
$114,634, respectively. Transactions in such assets qualify as party-in interest transactions
which are exempt from the prohibited transaction rules.
At December 31, 2009 and 2008, the Plan had $9,950,944 or 4.2% and $9,361,369 or 4.7%,
respectively, of its total investments in ADC Telecommunications, Inc. common stock.
12
ADC
Retirement Savings Plan
EIN:
41-0743912
Plan
#002
Schedule H,
Line 4i Schedule of Assets (Held at End of Year)
December 31, 2009
|
|
|
|
|
|
|
Current |
|
Description of Investment |
|
Value |
|
Common stock: |
|
|
|
|
|
|
|
|
|
ADC Telecommunications, Inc. common stock* |
|
$ |
9,950,944 |
|
|
|
|
|
|
Total common stock |
|
|
9,950,944 |
|
|
|
|
|
|
Mutual funds: |
|
|
|
|
|
|
|
|
|
American Century Income and Growth Fund |
|
|
22,164,603 |
|
|
|
|
|
|
Dodge and Cox Balanced Fund |
|
|
25,829,474 |
|
|
|
|
|
|
MFS Institutional International Equity Fund |
|
|
29,928,773 |
|
|
|
|
|
|
Dodge and Cox Income Fund |
|
|
11,330,341 |
|
|
|
|
|
|
Vanguard Small Cap Growth Index Fund |
|
|
6,294,615 |
|
|
|
|
|
|
Vanguard Small Cap Value Index Fund |
|
|
6,969,292 |
|
|
|
|
|
|
Vanguard Mid Cap Index Fund |
|
|
29,996,441 |
|
|
|
|
|
|
Vanguard Target Retirement Income Fund |
|
|
2,693,358 |
|
|
|
|
|
|
Vanguard Target Retirement 2005 Fund |
|
|
816,350 |
|
|
|
|
|
|
Vanguard Target Retirement 2010 Fund |
|
|
1,498,493 |
|
|
|
|
|
|
Vanguard Target Retirement 2015 Fund |
|
|
5,501,321 |
|
|
|
|
|
|
Vanguard Target Retirement 2020 Fund |
|
|
2,155,066 |
|
|
|
|
|
|
Vanguard Target Retirement 2025 Fund |
|
|
5,241,338 |
|
|
|
|
|
|
Vanguard Target Retirement 2030 Fund |
|
|
2,832,980 |
|
|
|
|
|
|
Vanguard Target Retirement 2035 Fund |
|
|
9,489,312 |
|
|
|
|
|
|
Vanguard Target Retirement 2040 Fund |
|
|
1,594,058 |
|
|
|
|
|
|
Vanguard Target Retirement 2045 Fund |
|
|
2,279,686 |
|
|
|
|
|
|
Vanguard Target Retirement 2050 Fund |
|
|
608,764 |
|
|
|
|
|
|
Evergreen Institutional Money Market Fund* |
|
|
161,990 |
|
|
|
|
|
Total mutual funds |
|
|
167,386,255 |
|
13
|
|
|
|
|
|
|
Current |
|
Description of Investment |
|
Value |
|
Common collective trust funds: |
|
|
|
|
|
|
|
|
|
RiverSource Trust Stable Capital II Fund |
|
|
42,724,537 |
|
|
|
|
|
|
RiverSource Trust Equity Index Fund I |
|
|
10,269,195 |
|
|
|
|
|
|
Total common collective trust funds |
|
|
52,993,732 |
|
|
|
|
|
|
Loans to participants: |
|
|
|
|
Loans to participants bearing interest
rates of 4.25% to 10%, maturities
through 2024* |
|
|
4,734,564 |
|
|
|
|
|
|
Insurance company guaranteed portfolio fund |
|
|
|
|
Great-West Guaranteed Portfolio Fund |
|
|
519,331 |
|
|
|
|
|
|
Total investments |
|
$ |
235,584,826 |
|
See Report of Independent Registered Public Accounting Firm
14
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, ADC Telecommunications,
Inc. has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly
authorized.
|
|
|
|
|
|
ADC Telecommunications, Inc.
Retirement Savings Plan
|
|
|
By: |
ADC TELECOMMUNICATIONS, INC.
|
|
|
|
|
|
Date: June 25, 2010 |
By: |
/s/James G. Mathews
|
|
|
|
Name: |
James G. Mathews |
|
|
|
Title: |
Vice President, Chief Financial Officer |
|
15