UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the fiscal year ended December 31, 2002
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from ______ to ______
Commission file number 001-00035
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.
300 WEST 6TH STREET, SUITE 1850
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
GE INTERLOGIX, INC.
401(k) RETIREMENT PLAN
Financial Statements and Supplemental Schedule
December 31, 2002 and 2001
(With Independent Auditors' Report Thereon)
2
REQUIRED INFORMATION
FINANCIAL STATEMENTS AND SCHEDULE:
Page(s)
Independent Auditors' Report 4
Financial Statements:
Statements of Net Assets Available for
Benefits December 31, 2002 and 2001 5
Statements of Changes in Net Assets Available
for Benefits Years Ended December 31, 2002 and 2001 6
Notes to Financial Statements 7-11
Supplemental Schedule:
Schedule H, line 4i - Schedule of Assets
(Held at End of Year) December 31, 2002 12
All other schedules required by the Department of Labor's
Rules and Regulations for Reporting and Disclosure
under the Employee Retirement Income Security Act of
1974 are omitted as they are inapplicable or not required.
Signature 13
EXHIBIT:
23.1 Consent of KPMG LLP
3
INDEPENDENT AUDITORS' REPORT
The Plan Administrator
GE Interlogix, Inc. 401(k) Retirement Plan:
We have audited the accompanying statements 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, 2002 and 2001, and the related
statements of changes in net assets available for benefits for the years 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 audits.
We conducted our audits 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 audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the statements of net assets available for benefits of
the Plan as of December 31, 2002 and 2001, and the statements of changes in net
assets available for benefits for the years then ended in conformity with
accounting principles generally accepted in the United States of America.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule H, line 4i -
schedule of assets (held at end of year) as of December 31, 2002 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 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.
/s/ KPMG LLP
Austin, Texas
June 12, 2003
4
GE INTERLOGIX, INC. 401(k) RETIREMENT PLAN
Statements of Net Assets Available for Benefits
December 31, 2002 and 2001
2002 2001
----------- -----------
Assets
Investments, at fair value $48,415,683 $51,131,994
Receivables:
Employee contributions -- 310,079
Employer contribution -- 200,306
----------- -----------
Net assets available for benefits $48,415,683 $51,642,379
=========== ===========
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, 2002 and 2001
2002 2001
------------ ------------
Additions to net assets attributed to:
Interest income $ 361,891 $ 462,652
Dividends 747,864 709,967
Contributions:
Rollover 421,626 1,012,222
Employee 5,560,182 5,292,671
Employer 1,836,404 1,829,246
------------ ------------
7,818,212 8,134,139
------------ ------------
Total additions 8,927,967 9,306,758
Deductions from net assets attributed to:
Net depreciation in fair value of
investments 7,522,347 4,154,742
Benefits paid to participants 4,611,583 4,834,234
Deemed loan distributions 3,383 --
Administrative expenses 17,350 13,800
------------ ------------
Total deductions 12,154,663 9,002,776
Net increase (decrease) (3,226,696) 303,982
Net assets available for benefits:
Beginning of year 51,642,379 51,338,397
------------ ------------
End of year $ 48,415,683 $ 51,642,379
============ ============
See accompanying notes to financial statements
6
GE INTERLOGIX, INC. 401(k) RETIREMENT PLAN
Notes to Financial Statements
December 31, 2002 and 2001
(1) DESCRIPTION OF THE PLAN
The following description of the GE Interlogix, Inc. 401(k) Retirement
Plan (formerly Interlogix, Inc. 401(k) Retirement Plan) (the "Plan"), a
defined contribution plan, sponsored by GE Interlogix, Inc. (formerly
Interlogix, Inc.) (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
Plan is administered by the Company and advised by a committee whose
members are appointed by the Board of Directors of the Company (the
"Administrative Committee"). The Company has entered into an agreement
with New York Life Trust Company (the "Trustee") 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
In February 2002, Interlogix, Inc. was purchased by General Electric
Company. Effective February 21, 2002, 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. Each share of Interlogix, Inc. common stock
in the Interlogix, Inc. Stock Fund was converted into the right to
receive $19.43 in cash and 0.5174 of a share of General Electric Company
common stock.
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 2002 and 2001, 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 2002 and 2001, 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 General Electric Company common stock
(formerly Interlogix, Inc. common stock). 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 or losses
is based on the value of the participant's account at the close of each
day.
7
GE INTERLOGIX, INC. 401(k) RETIREMENT PLAN
Notes to Financial Statements
December 31, 2002 and 2001
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,
2002 and 2001, forfeited non-vested accounts totaled approximately
$20,000 and $19,000, respectively and approximately $10,000 and $79,000
of forfeitures were used to reduce employer contributions during 2002 and
2001, respectively. 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 vested 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 5.25 percent to 11.25 percent on loans outstanding at December
31, 2002 and 5.75 percent to 12.00 percent on loans outstanding at
December 31, 2001. Principal and interest is paid ratably through monthly
payroll deductions. Loan administration charges are charged to the
participant's account electing the loan.
PAYMENTS 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 or in-kind distributions of General Electric
Company common stock 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.
VOTING RIGHTS
Each participant is entitled to exercise voting rights attributable to
the shares allocated to his or her account and is notified by the Trustee
prior to the time that such rights are to be exercised. The Trustee is
responsible for following the voting instructions that have been given by
the participant. If the participant does not instruct the Trustee with
regard to a voting decision, the shares are voted as instructed by the
Company.
8
GE INTERLOGIX, INC. 401(k) RETIREMENT PLAN
Notes to Financial Statements
December 31, 2002 and 2001
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.
(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.
Interest and dividend income is recorded as earned on an accrual
basis.
On December 31, 2000, the Plan received benefit-responsive
investments in guaranteed insurance contracts in conjunction with
the merger of the Interactive Technologies, Inc. 401(k) Investment
Plan (the "ITI Plan merger"). These contracts were combined with
the Eclipse Money Market Fund to create the Stable Value fund
option. The contracts are included in the financial statements at
contract value as reported to the Plan. Contract value represents
contributions made under the contracts, plus interest accrued at
the current rate, less participant withdrawals and administrative
expenses. Participants may ordinarily direct the withdrawal or
transfer of all or a portion of their investment at contract
value.
There are no reserves against the contract value of the guaranteed
insurance contracts for credit risk of the contract issuer or
otherwise. The average yield and crediting interest rates ranged
from 4.0 percent to 5.0 percent for 2002 and from 4.0 percent to
5.8 percent for 2001. The crediting interest rate is based on a
formula agreed upon with the issuer, but may not be less than a
specified rate, which ranged from 3.5 percent to 4.0 percent as of
December 31, 2002. Such interest rates are reviewed on an annual
basis for resetting. The fair values of these contracts as of
December 31, 2002 and 2001 approximate the contract values.
(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 other than loan
administration charges which are charged to the participant's
account electing the loan.
(e) PAYMENT OF BENEFITS
Benefit payments are recorded when paid.
9
GE INTERLOGIX, INC. 401(k) RETIREMENT PLAN
Notes to Financial Statements
December 31, 2002 and 2001
(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 General Electric Company common stock. In addition, the
Plan contains certain investments in guaranteed insurance
contracts that were transferred to the Plan in conjunction with
the ITI Plan merger. 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 2001 financial
statement presentation to conform to the 2002 presentation.
(3) INVESTMENTS
The following tables presents investments that represent 5 percent or
more of the Plan's net assets as of December 31, 2002 and 2001.
2002
----------
Eclipse Money Market Fund $8,632,467
Dodge & Cox Balanced Fund 8,165,057
Janus Fund 6,290,086
American Century Equity Growth Fund 5,236,002
PIMCO Total Return Fund 3,893,369
Eclipse Indexed Equity Fund 3,398,970
General Electric Company common stock 2,729,172
PIMCO Small Cap Value Fund 2,462,772
2001
----------
Janus Fund $9,695,715
Dodge & Cox Balanced Fund 8,834,448
Eclipse Money Market Fund 6,763,564
American Century Equity Growth Fund 6,401,231
Eclipse Indexed Equity Fund 4,362,744
Janus Overseas Fund 3,173,020
PIMCO Total Return Fund 2,584,438
10
GE INTERLOGIX, INC. 401(k) RETIREMENT PLAN
Notes to Financial Statements
December 31, 2002 and 2001
During 2002 and 2001, the Plan's investments (including investments bought,
sold, and held during the year) appreciated (depreciated) in value as follows:
DECEMBER 31
-------------------------------
2002 2001
----------- -----------
General Electric Company common stock $ (831,156) $ --
Interlogix, Inc. common stock (68,505) 1,433,846
Mutual funds (6,622,686) (5,588,588)
----------- -----------
Net change in fair value $(7,522,347) $(4,154,742)
=========== ===========
(4) PARTY-IN-INTEREST TRANSACTIONS
The Plan engages in investment transactions with funds managed by the
Trustee, a party-in-interest with respect to the Plan. These transactions
are covered by an exemption from the "prohibited transaction" provisions
of ERISA and the Internal Revenue Code (the "IRC"). The Plan also has
investments in General Electric Company common stock (formerly
Interlogix, Inc. common stock).
(5) TAX STATUS
The Internal Revenue Service has determined and informed the Plan
administrator by a letter dated September 24, 2002, that the Plan and
related trust are designed in accordance with applicable sections of the
IRC. The Plan has not been amended since receiving the determination
letter. The Plan administrator believes that the Plan is designed and is
currently operated in compliance with the applicable requirements of the
IRC and the related trust was tax exempt as of December 31, 2002 and
2001.
11
GE INTERLOGIX, INC. 401(k) RETIREMENT PLAN
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2002
NUMBER OF
IDENTITY OF ISSUE DESCRIPTION OF INVESTMENT SHARES CURRENT VALUE
------------------------------------------ ------------------------------------------------------------ --------- -------------
Corporate Stocks - Common
General Electric Company* General Electric Company common stock 112,081 $ 2,729,172
Mutual Funds
American Century American Century Equity Growth Fund 344,701 5,236,002
Dodge & Cox Dodge & Cox Balanced Fund 134,404 8,165,057
Franklin Group of Funds Franklin Small-Mid Cap Growth Fund 27,662 607,191
Janus Janus Fund 352,979 6,290,086
Janus Janus Overseas Fund 148,274 2,267,116
New York Life Trust Company* Eclipse Indexed Equity Fund 168,349 3,398,970
New York Life Trust Company* Eclipse Money Market Fund 8,632,467 8,632,467
New York Life Trust Company* Mainstay High Yield Corporate Bond Fund 383,424 1,897,946
PIMCO Funds PIMCO Small Cap Value Fund 124,382 2,462,772
PIMCO Funds PIMCO Total Return Fund 364,889 3,893,369
Guaranteed Insurance Contracts
American Founders Life Insurance Company Bradford National Life Insurance Company Guarantee
#2990002645, 5.0%, maturing January 28, 2044 191,684
Conseco Life Insurance Company American Life and Casualty Insurance Company
Contract, #ON890313, 4.0%, maturing April 1, 2019 103,085
Conseco Life Insurance Company Massachusetts General Life Insurance Company Guarantee
Contract, #10GA001586, 4.0%, maturing January 29, 2015 278,383
Conseco Life Insurance Company Massachusetts General Life Insurance Company Guarantee
Contract, #10GA006548, 4.0%, maturing January 29, 2015 232,724
Conseco Life Insurance Company Massachusetts General Life Insurance Company Guarantee
Contract, #10GA009835, 4.0%, maturing March 23, 2022 144,755
Participant loans* Interest rates from 5.25% to 11.25% 1,884,904
------------
$ 48,415,683
============
* Denotes party in interest.
See accompanying independent auditors' report.
12
GE INTERLOGIX, INC. 401(k) RETIREMENT PLAN
Signature
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/ THOMAS O'DONNELL
----------------------
Thomas O'Donnell
Plan Administrator
Date: June 27, 2003
13
EXHIBIT INDEX
Exhibit No. Description
----------- --------------------------
23.1 Consent of KPMG LLP