SEC Filing | Ametek, Inc.

View:

1 United States Securities and Exchange Commission Washington, D.C. 20549 FORM 11-K (Mark one) [X] ANNUAL REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 1999 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-12981 THE AMETEK RETIREMENT AND SAVINGS PLAN (Full title of the plan) AMETEK, INC. 37 NORTH VALLEY ROAD, BUILDING 4, P.O. BOX 1764 PAOLI, PENNSYLVANIA 19301-0801 (Name of issuer of the securities held pursuant to the plan and the address of its principal executive office)

2 Report of Independent Auditors The Administrative Committee AMETEK Retirement and Savings Plan We have audited the accompanying statements of financial condition of the AMETEK Retirement and Savings Plan as of December 31, 1999 and 1998, and the related statements of income and changes in plan equity for each of the three years in the period ended December 31, 1999. 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. 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 financial condition of the AMETEK Retirement and Savings Plan at December 31, 1999 and 1998, and the income and changes in plan equity for each of the three years in the period ended December 31, 1999, in conformity with accounting principles generally accepted in the United States. /s/ Ernst & Young LLP Philadelphia, Pennsylvania June 7, 2000 F-1

3 THE AMETEK RETIREMENT AND SAVINGS PLAN STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 1999 - --------------------------------------------------------------------------------------------------------------- FIXED INCOME BALANCED EQUITY INSURANCE FUND FUND FUND CONTRACTS - --------------------------------------------------------------------------------------------------------------- ASSETS Investments at fair value: Guaranteed Investment Contracts $ 42,785,829 $ -- $ -- $ -- Vanguard Group of Mutual Funds 7,534,831 13,440,070 45,874,249 -- The Magellan Fund -- -- 21,978,570 -- Black Rock Small Cap Growth Portfolio -- -- 13,922,459 -- Cash value of life insurance -- -- -- 419,059 AMETEK, Inc. common stock -- -- -- -- ------------ ------------ ------------ ------------ Total Investments 50,320,660 13,440,070 81,775,278 419,059 Receivables: Employee contributions 153,202 67,303 305,366 1,754 Employer contributions 112,310 154,132 360,298 -- Loans to participants -- -- -- -- Interfund accounts 49,081 6,572 56,980 -- ------------ ------------ ------------ ------------ Total Assets $ 50,635,253 $ 13,668,077 $ 82,497,922 $ 420,813 ============ ============ ============ ============ LIABILITIES AND PLAN EQUITY Liability for Insurance Contribution $ -- $ -- $ -- $ 1,754 ------------ ------------ ------------ ------------ Total Liabilities -- -- -- 1,754 Plan equity 50,635,253 13,668,077 82,497,922 419,059 ------------ ------------ ------------ ------------ Total liabilities and plan equity $ 50,635,253 $ 13,668,077 $ 82,497,922 $ 420,813 ============ ============ ============ ============ - --------------------------------------------------------------------------------------------- COMMON STOCK LOAN TOTAL FUND ACCOUNT - --------------------------------------------------------------------------------------------- ASSETS Investments at fair value: Guaranteed Investment Contracts $ -- $ -- $ 42,785,829 Vanguard Group of Mutual Funds -- -- 66,849,150 The Magellan Fund -- -- 21,978,570 Black Rock Small Cap Growth Portfolio -- -- 13,922,459 Cash value of life insurance -- -- 419,059 AMETEK, Inc. common stock 7,493,131 -- 7,493,131 ------------ ------------ ------------ Total Investments 7,493,131 -- 153,448,198 Receivables: Employee contributions 28,275 -- 555,900 Employer contributions 44,304 -- 671,044 Loans to participants -- 6,515,528 6,515,528 Interfund accounts 7,203 (119,836) -- ------------ ------------ ------------ Total Assets $ 7,572,913 $ 6,395,692 $161,190,670 ============ ============ ============ LIABILITIES AND PLAN EQUITY Liability for Insurance Contribution $ -- $ -- $ 1,754 ------------ ------------ ------------ Total Liabilities -- -- 1,754 Plan equity 7,572,913 6,395,692 161,188,916 ------------ ------------ ------------ Total liabilities and plan equity $ 7,572,913 $ 6,395,692 $161,190,670 ============ ============ ============ See accompanying notes. F-2

4 THE AMETEK RETIREMENT AND SAVINGS PLAN STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 1998 - ---------------------------------------------------------------------------------------------------------------------- FIXED INCOME BALANCED EQUITY INSURANCE FUND FUND FUND CONTRACTS - ---------------------------------------------------------------------------------------------------------------------- ASSETS Investments at fair value: Guaranteed Investment Contracts $ 43,828,547 $ -- $ -- $ -- Vanguard Group of Mutual Funds 5,678,490 11,322,082 36,275,300 -- The Magellan Fund -- -- 15,315,407 -- Black Rock Small Cap Growth Portfolio -- -- 8,294,127 -- Cash value of life insurance -- -- -- 468,399 AMETEK, Inc. common stock -- -- -- -- ------------ ------------ ------------ ------------ Total Investments 49,507,037 11,322,082 59,884,834 468,399 Receivables: Employee contributions 125,177 48,004 191,982 1,006 Employer contributions 153,400 161,087 380,420 -- Loans to participants -- -- -- -- Interfund accounts 178,226 24,996 178,139 -- ------------ ------------ ------------ ------------ Total Assets $ 49,963,840 $ 11,556,169 $ 60,635,375 $ 469,405 ============ ============ ============ ============ LIABILITIES AND PLAN EQUITY Liability for Insurance Contribution $ -- $ -- $ -- $ 2,552 ------------ ------------ ------------ ------------ Total Liabilities -- -- -- 2,552 Plan equity 49,963,840 11,556,169 60,635,375 466,853 ------------ ------------ ------------ ------------ Total liabilities and plan equity $ 49,963,840 $ 11,556,169 $ 60,635,375 $ 469,405 ============ ============ ============ ============ - ------------------------------------------------------------------------------------------------- COMMON STOCK LOAN TOTAL FUND ACCOUNT - ------------------------------------------------------------------------------------------------- ASSETS Investments at fair value: Guaranteed Investment Contracts $ -- $ -- $ 43,828,547 Vanguard Group of Mutual Funds -- -- 53,275,872 The Magellan Fund -- -- 15,315,407 Black Rock Small Cap Growth -- -- 8,294,127 Portfolio Cash value of life insurance -- -- 468,399 AMETEK, Inc. common stock 9,222,304 -- 9,222,304 ------------ ------------ ------------ Total Investments 9,222,304 -- 130,404,656 Receivables: Employee contributions 25,272 -- 391,441 Employer contributions 65,601 -- 760,508 Loans to participants -- 6,652,176 6,652,176 Interfund accounts 25,057 (406,418) -- ------------ ------------ ------------ Total Assets $ 9,338,234 $ 6,245,758 $138,208,781 ============ ============ ============ LIABILITIES AND PLAN EQUITY Liability for Insurance Contribution $ -- $ -- $ 2,552 ------------ ------------ ------------ Total Liabilities -- -- 2,552 Plan equity 9,338,234 6,245,758 138,206,229 ------------ ------------ ------------ Total liabilities and plan equity $ 9,338,234 $ 6,245,758 $138,208,781 ============ ============ ============ See accompanying notes. F-3

5 THE AMETEK RETIREMENT AND SAVINGS PLAN STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY YEAR ENDED DECEMBER 31, 1999 - ----------------------------------------------------------------------------------------------------------------------------- FIXED INCOME BALANCED EQUITY INSURANCE FUND FUND FUND CONTRACTS - ----------------------------------------------------------------------------------------------------------------------------- ADDITIONS Contributions: Employee $ 3,177,848 $ 1,329,916 $ 6,117,112 $ 32,825 Employer 1,098,433 880,320 2,595,597 -- Rollovers from other plans 131,897 247,761 404,170 -- ------------- ------------- ------------- ------------- Total Contributions 4,408,178 2,457,997 9,116,879 32,825 ------------- ------------- ------------- ------------- Investment Income: Interest and dividends 2,857,002 938,464 6,824,004 28,940 Net realized and unrealized gain (loss) on investments (103,809) (84,246) 8,465,100 -- ------------- ------------- ------------- ------------- Total Investment Income (Loss) 2,753,193 854,218 15,289,104 28,940 ------------- ------------- ------------- ------------- Total Contributions and Investment Income (Loss) 7,161,371 3,312,215 24,405,983 61,765 ------------- ------------- ------------- ------------- DEDUCTIONS Withdrawals and terminations (5,859,879) (556,887) (4,714,253) (76,734) Insurance premiums and commissions - net -- -- -- (32,825) Net interfund transfers (630,079) (643,420) 2,170,817 -- ------------- ------------- ------------- ------------- Total Deductions (6,489,958) (1,200,307) (2,543,436) (109,559) ------------- ------------- ------------- ------------- Increase (decrease) in plan equity 671,413 2,111,908 21,862,547 (47,794) Plan equity at beginning of year 49,963,840 11,556,169 60,635,375 466,853 ------------- ------------- ------------- ------------- Plan equity at end of year $ 50,635,253 $ 13,668,077 $ 82,497,922 $ 419,059 ============= ============= ============= ============= - ---------------------------------------------------------------------------------------------------- COMMON STOCK LOAN TOTAL FUND ACCOUNT - ---------------------------------------------------------------------------------------------------- ADDITIONS Contributions: Employee $ 645,724 $ -- $ 11,303,425 Employer 332,084 -- 4,906,434 Rollovers from other plans 59,713 -- 843,541 ------------- ------------- ------------- Total Contributions 1,037,521 -- 17,053,400 ------------- ------------- ------------- Investment Income: Interest and dividends 76,820 589,459 11,314,689 Net realized and unrealized gain (loss) on investments (1,266,576) -- 7,010,469 ------------- ------------- ------------- Total Investment Income (Loss) (1,189,756) 589,459 18,325,158 ------------- ------------- ------------- Total Contributions and Investment Income (Loss) (152,235) 589,459 35,378,558 ------------- ------------- ------------- DEDUCTIONS Withdrawals and terminations (608,202) (547,091) (12,363,046) Insurance premiums and commissions - net -- -- (32,825) Net interfund transfers (1,004,884) 107,566 -- ------------- ------------- ------------- Total Deductions (1,613,086) (439,525) (12,395,871) ------------- ------------- ------------- Increase (decrease) in plan equity (1,765,321) 149,934 22,982,687 Plan equity at beginning of year 9,338,234 6,245,758 138,206,229 ------------- ------------- ------------- Plan equity at end of year $ 7,572,913 $ 6,395,692 $ 161,188,916 ============= ============= ============= See accompanying notes. F-4

6 THE AMETEK RETIREMENT AND SAVINGS PLAN STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY YEAR ENDED DECEMBER 31, 1998 - --------------------------------------------------------------------------------------------------------- FIXED INCOME BALANCED EQUITY INSURANCE FUND FUND FUND CONTRACTS - --------------------------------------------------------------------------------------------------------- ADDITIONS Contributions: Employee $3,543,575 $916,134 $6,136,301 $39,679 Employer 1,351,564 519,347 2,121,900 - Rollovers from other plans 905,781 1,952,904 3,318,392 - ----------------------------------------------------------- Total Contributions 5,800,920 3,388,385 11,576,593 39,679 ----------------------------------------------------------- Investment Income: Interest and dividends 2,935,484 974,202 3,092,705 24,507 Net realized and unrealized gain (loss) on investments 1,038 (579,906) 6,458,799 - ----------------------------------------------------------- Total Investment Income (Loss) 2,936,522 394,296 9,551,504 24,507 ----------------------------------------------------------- ----------------------------------------------------------- Total Contributions and Investment Income (Loss) 8,737,442 3,782,681 21,128,097 64,186 ----------------------------------------------------------- DEDUCTIONS Withdrawals and terminations (3,953,577) (368,712) (3,508,169) (35,036) Insurance premiums and commissions - net - - - (39,679) Net interfund transfers (595,149) 8,142,200 (7,960,706) (8,109) ----------------------------------------------------------- Total Deductions (4,548,726) 7,773,488 (11,468,875) (82,824) ----------------------------------------------------------- Increase (decrease) in plan equity 4,188,716 11,556,169 9,659,222 (18,638) Plan equity at beginning of year 45,775,124 - 50,976,153 485,491 ----------------------------------------------------------- Plan equity at end of year $49,963,840 $11,556,169 $60,635,375 $466,853 =========================================================== - ---------------------------------------------------------------------------------------- COMMON STOCK LOAN TOTAL FUND ACCOUNT - ---------------------------------------------------------------------------------------- ADDITIONS Contributions: Employee $777,496 $ - $11,413,185 Employer 321,061 - 4,313,872 Rollovers from other plans 409,830 - 6,586,907 ------------------------------------------ Total Contributions 1,508,387 - 22,313,964 ------------------------------------------ Investment Income: Interest and dividends 83,179 398,298 7,508,375 Net realized and unrealized gain (loss) on investments (1,933,882) - 3,946,049 ------------------------------------------ Total Investment Income (Loss) (1,850,703) 398,298 11,454,424 ------------------------------------------ ------------------------------------------ Total Contributions and Investment Income (Loss) (342,316) 398,298 33,768,388 ------------------------------------------ DEDUCTIONS Withdrawals and terminations (572,522) (415,599) (8,853,615) Insurance premiums and commissions - net - - (39,679) Net interfund transfers (246,029) 667,793 - ------------------------------------------ Total Deductions (818,551) 252,194 (8,893,294) ------------------------------------------ Increase (decrease) in plan equity (1,160,867) 650,492 24,875,094 Plan equity at beginning of year 10,499,101 5,595,266 113,331,135 ------------------------------------------ Plan equity at end of year $9,338,234 $6,245,758 $138,206,229 ========================================== See accompanying notes. F-5

7 THE AMETEK RETIREMENT AND SAVINGS PLAN STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY YEAR ENDED DECEMBER 31, 1997 - ---------------------------------------------------------------------------------------------------------- FIXED INCOME EQUITY INSURANCE FUND FUND CONTRACTS - ---------------------------------------------------------------------------------------------------------- ADDITIONS Contributions: Employee $ 3,771,002 $ 5,690,400 $ 50,836 Employer 648,740 1,488,319 -- Rollovers from other plans 315,292 938,076 -- ------------- ------------- ------------- Total Contributions 4,735,034 8,116,795 50,836 ------------- ------------- ------------- Investment Income: Interest and dividends 2,606,907 6,022,655 31,360 Net realized and unrealized gain on investments -- 1,266,125 -- ------------- ------------- ------------- Total Investment Income 2,606,907 7,288,780 31,360 ------------- ------------- ------------- ------------- ------------- ------------- Total Contributions and Investment Income 7,341,941 15,405,575 82,196 ------------- ------------- ------------- DEDUCTIONS Withdrawals and terminations (8,597,350) (7,617,996) (59,648) Insurance premiums and commissions - net -- -- (50,836) Net interfund transfers (1,359,117) 1,006,225 (33,497) ------------- ------------- ------------- Total Deductions (9,956,467) (6,611,771) (143,981) ------------- ------------- ------------- Increase (decrease) in plan equity (2,614,526) 8,793,804 (61,785) Plan equity at beginning of year 48,389,650 42,182,349 547,276 ------------- ------------- ------------- Plan equity at end of year $ 45,775,124 $ 50,976,153 $ 485,491 ============= ============= ============= - ---------------------------------------------------------------------------------------------------- COMMON STOCK LOAN TOTAL FUND ACCOUNT - ---------------------------------------------------------------------------------------------------- ADDITIONS Contributions: Employee $ 630,954 $ -- $ 10,143,192 Employer 170,474 -- 2,307,533 Rollovers from other plans 116,817 -- 1,370,185 ------------- ------------- ------------- Total Contributions 918,245 -- 13,820,910 ------------- ------------- ------------- Investment Income: Interest and dividends 123,277 395,542 9,179,741 Net realized and unrealized gain on investments 3,383,739 -- 4,649,864 ------------- ------------- ------------- Total Investment Income 3,507,016 395,542 13,829,605 ------------- ------------- ------------- ------------- ------------- ------------- Total Contributions and Investment Income 4,425,261 395,542 27,650,515 ------------- ------------- ------------- DEDUCTIONS Withdrawals and terminations (1,776,895) (384,948) (18,436,837) Insurance premiums and commissions - net -- -- (50,836) Net interfund transfers (121,676) 508,065 -- ------------- ------------- ------------- Total Deductions (1,898,571) 123,117 (18,487,673) ------------- ------------- ------------- Increase (decrease) in plan equity 2,526,690 518,659 9,162,842 Plan equity at beginning of year 7,972,411 5,076,607 104,168,293 ------------- ------------- ------------- Plan equity at end of year $ 10,499,101 $ 5,595,266 $ 113,331,135 ============= ============= ============= See accompanying notes. F-6

8 THE AMETEK RETIREMENT AND SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 1. DESCRIPTION OF THE PLAN The following brief description of the AMETEK Retirement and Savings Plan ("the Plan") provides only summarized information. Participants should refer to the full Summary Plan Description for more complete information. The Plan is a tax-deferred 401(k) defined contribution savings plan, with a separate retirement feature described below, which provides eligible employees of AMETEK, Inc. ("AMETEK", or "the Company"), and certain of its subsidiaries, an opportunity to invest up to 14% of their compensation in one or a combination of investment programs (described in Note 3). Participants are fully vested at all times in their contributions to the Plan and are vested in Company contributions after three years of service, or upon death, attainment of age 65 or early, normal or disability retirement. Forfeited Company contributions, which are insignificant in amount, are used to reduce current-year Company contributions. If a participant terminates employment with the Company for any reason, he or she may receive a distribution following termination of employment or may elect to commence distributions at, or after age 55, but no later than age 70-1/2. When a participant attains age 59-1/2 while still an employee, he or she can elect to withdraw the vested amount of his or her account balance. Also, in certain cases of financial hardship, a participant may elect to withdraw up to a specified portion of his or her vested account balance, regardless of age. The Plan also allows participants to borrow funds from their accounts, subject to a charge for administrative fees (beginning in 1998), and other certain limitations, and such amounts are reflected in a loan account receivable until repaid by the participant (see Note 4). The Plan provides for Company contributions equal to 33 1/3% of the first 6% of compensation contributed by each participant, to a maximum annual contribution of $1,200 per participant. Matching Company contributions are credited to participants' accounts at the same time their contributed compensation is invested. Effective January 1, 1997, the Plan was amended and restated to incorporate a retirement feature into the Plan to benefit eligible salaried and hourly employees hired by AMETEK after December 31, 1996. Commencing with the January 1, 1997 effective date, AMETEK makes contributions to the Plan on behalf of such employees equal to a specified percentage of their compensation earned based upon each participant's age and years of service, up to predetermined limits. Employee contributions under the retirement feature of the Plan are not permitted. Investment programs and transfer and exchange privileges available under the retirement feature are the same as for the savings feature under the Plan. However, retirement feature contributions become fully vested after five years of service, and loans and withdrawals are not permitted. While the Company has not expressed any intent to terminate the Plan, it is free to do so at any time subject to the provisions of the Employee Retirement Income Security Act of 1974 as amended ("ERISA"), and applicable labor agreements. In the event of termination, each participant will receive the value of his or her separate account. Participants' collective accounts are represented by the Plan's equity as shown in the accompanying financial statements. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of financial statements The accompanying financial statements have been prepared on the accrual basis of accounting, except for the non-accrual of a liability for amounts owed to former participants, which are reflected in plan equity in accordance with accounting principles generally accepted in the United States. (see Note 8). Purchases and sales of investments are reflected on trade dates. Realized gains and losses on sales of investments are based on the average cost of such investments. Dividend income is recorded on the ex-dividend date. Income from other investments is recorded as earned. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates and assumptions. Investment valuation Investments in equity securities are carried at market value based upon closing market quotes on the last business day of the Plan year. Money market and short-term investments are carried at the fair value established by the issuer and/or the trustee. Life Insurance Contracts are carried at the cash surrender value of such policies at year-end. F-7

9 THE AMETEK RETIREMENT AND SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Guaranteed Investment Contracts ("GICs"), all of which are considered benefit-responsive, are reported at contract value, which approximates fair value. Fully benefit-responsive investment contracts are contracts that transfer financial risk of principal and interest to a responsible third party, and provide for participant-initiated transactions without conditions, limitations or restrictions. All other investment contracts are reported at fair value. 3. INVESTMENT PROGRAMS At December 31, 1999, the Vanguard Fiduciary Trust Company was the Trustee of the Plan. Each participant may have his or her accounts invested (up to certain specified limits) in one or a combination of the following investment programs as of December 31, 1999: (a) The Fixed Income Funds: The Fixed Income Funds are comprised of a retirement savings trust which invests in a diversified portfolio of GICs issued by insurance companies and other financial institutions. Contributions to the retirement savings trust and proceeds from its GIC maturities are invested entirely in the Vanguard Stable Value Market Fund, which invests in a more diversified GIC portfolio. The Fixed Income Fund also holds investments in two additional Vanguard Funds: a Bond Market Index Fund and a Prime Money Market Fund. Investments of the Fixed Income Fund (carried at fair value) are shown in the table below: Balance at December 31, --------------------------- 1999 1998 ---- ---- GICs (1)* $42,785,829 $43,828,547 ----------- ---------- Other: Money Market Mutual Fund 6,252,921 4,478,679 Vanguard Total Bond Market Index Fund (cost $1,356,410) 1,281,910 1,199,811 ----------- ----------- 7,534,831 5,678,490 ----------- ----------- Total Fixed Income Fund investments $50,320,660 $49,507,037 =========== =========== *At December 31, investment represents 5% or more of the fair value of the Plan's net assets. (1) Includes synthetic investment contracts in which a financially responsible third party pays a contract rate of interest on the underlying investments, and provides for full payment of principal upon participant-directed withdrawals from the Trust. Also includes a short-term investment account utilized for withdrawals, transfers, and future GIC purchases. Income on the GICs is earned based on interest rates ranging from 5.3% to 6.8% for the year ended December 31, 1999 and 5.4% to 6.8% for the year ended December 31, 1998. Variable-rate contracts are reset quarterly, but will not fall below zero. Contracts with fixed rates of interest through maturity ranged between 5.9% and 6.2% for each of the Plan years ended December 31, 1999 and 1998, respectively. The weighted average crediting interest rate for GICs was 6.3% for 1999 and 6.2% for 1998. The average yield for all investments within the Fixed Income Fund was 5.7% and 6.2% for the Plan years ended December 31, 1999 and 1998, respectively, net of investment expenses. F-8

10 THE AMETEK RETIREMENT AND SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 3. INVESTMENT PROGRAMS (continued) (b) The Balanced Funds: Participants investing in the Balanced Funds have two alternatives for allocating their accounts: 1. Vanguard LifeStrategy Growth Funds - Participants may select among three growth strategies (Conservative Growth, Moderate Growth, and Aggressive Growth), each with corresponding levels of asset allocations and investment risks. Each portfolio invests in various mutual funds within the Vanguard Group with fund objectives meeting the overall strategy chosen by the participant. 2. Vanguard Wellington Fund - This fund invests in dividend-paying large and mid-capitalization stocks of well-established companies, as well as bonds. The fund seeks income and long-term capital appreciation, with an average blend of assets of 65% in stocks and 35% in bonds. At December 31, the investments of the Balanced Fund consisted of the following: 1999 1998 ----------------------------------------- --------------------------------------------- Number of Cost Market Number Cost Market Shares Value of Shares Value ----------------------------------------- --------------------------------------------- Vanguard LifeStrategy Growth Funds 229,692 $ 4,021,329 $ 4,382,463 148,450 $ 2,485,929 $ 2,556,962 ------- ----------- ----------- ------- ----------- ----------- Vanguard Wellington Fund * 323,949 9,997,965 9,057,607 298,641 9,385,066 8,765,120 ------- ----------- ----------- ------- ----------- ----------- Total Balanced Fund 553,641 $14,019,294 $13,440,070 447,091 $11,870,995 $11,322,082 ------- ----------- ----------- ------- ----------- ----------- * At December 31, investment represents 5% or more of the fair value of the Plan's net assets. (c) The Equity Funds: The Equity Funds consist of mutual funds primarily in the Vanguard Group of Equity Funds. The fund includes the Vanguard Windsor II Fund, the Vanguard PRIMECAP Fund, the Vanguard International Growth Fund, and the Vanguard 500 Index Fund. Equity Fund participants may also invest in the Fidelity Magellan Fund, which is a broadly diversified mutual fund investing in a wide range of worldwide stocks and other types of investments. The BlackRock Small Cap Growth Portfolio is also included in the Equity Fund. Both the Vanguard funds and the BlackRock fund seek long-term capital appreciation. All of the mutual funds mentioned above use various investment techniques, including foreign exchange and derivatives transactions, though generally these funds carry significant limitations as to the use of such techniques. Shares in each fund are purchased at the net asset value of the respective funds and no direct commissions, fees or other charges are assessed against the accounts in these funds. F-9

11 THE AMETEK RETIREMENT AND SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 3. INVESTMENT PROGRAMS (continued) At December 31, 1999 and 1998, the investments of the Equity Fund consisted of the following: ------------------------------------------- --------------------------------------------- 1999 1998 ------------------------------------------- --------------------------------------------- Number Market Number Market Of Cost Value of Cost Value Shares Shares ------------------------------------------- --------------------------------------------- Vanguard Group of Equity Funds: Vanguard Windsor II Fund * 696,270 $21,710,644 $17,385,859 644,282 $20,691,742 $19,231,819 Vanguard PRIMECAP Fund * 258,368 12,519,358 16,036,923 192,610 8,489,009 9,179,795 Vanguard Int'l Growth Fund 275,082 5,239,465 6,186,597 264,766 4,941,840 4,969,664 Vanguard 500 Index Fund 46,293 5,378,341 6,264,870 25,397 2,670,071 2,894,022 ----------- ----------- ----------- ----------- ----------- ----------- Total Vanguard Funds 1,276,013 44,847,808 45,874,249 1,127,055 36,792,662 36,275,300 ----------- ----------- ----------- ----------- ----------- ----------- Fidelity Magellan Fund * 160,862 18,649,226 21,978,570 126,762 13,944,094 15,315,407 ----------- ----------- ----------- ----------- ----------- ----------- Black Rock Small Cap. Fund * 434,263 9,952,197 13,922,459 383,455 8,302,277 8,294,127 ----------- ----------- ----------- ----------- ----------- ----------- Total Equity Fund 1,871,138 $73,449,231 $81,775,278 1,637,272 $59,039,033 $59,884,834 =========== =========== =========== =========== =========== =========== * At December 31, investment represents 5% of more of the fair value of the Plan's net assets. (d) Insurance Contracts: Employee contributions are presently used to maintain previously purchased life insurance policies underwritten by First Colony Life Insurance Company of Lynchburg, Virginia. Commissions paid on Insurance Contracts are charged directly against the participants' insurance accounts. This fund continues to be closed to new participants. (e) The Common Stock Fund: At December 31, 1999 and 1998, the assets of the Common Stock Fund were invested in AMETEK, Inc. common stock. At December 31, 1999, the investment consisted of 393,082 shares having a cost of $6,975,910 and a market value of $7,493,131. At December 31, 1998, such investment consisted of 413,325 shares having a cost of $7,153,025 and a market value of $9,222,304. Shares of AMETEK, Inc. common stock may be purchased by the Trustee on the open market, directly from AMETEK, or from other stockholders. Brokerage commissions paid are charged against the accounts invested in this Fund. F-10

12 THE AMETEK RETIREMENT AND SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 3. INVESTMENT PROGRAMS (continued) A participant may change his or her contribution percentage election to any fund effective as of the first day of each calendar quarter. In addition, the plan provides for participant-directed investing, whereby participants may change their investment selection within or between investment programs or specific investment funds in which their contributions are invested at any time, subject to certain limitations. The Plan also permits a participant, at any time, to completely discontinue contributions on a prospective basis. There were approximately 5,000 participants in the Plan at December 31, 1999. Participants generally invest in more than one fund. 4. LOAN ACCOUNTS RECEIVABLE Participants may borrow a minimum of $1,000 or up to a maximum equal to the lesser of $50,000 or 50% of their vested account balance. Participants may have up to two outstanding loans at any time, the sum of which may not exceed the maximum. Repayment terms of the loan are generally limited to no longer than 60 months from inception. The loans are secured by the balance in the participant's account, and bear interest at rates established by the Plan's administrative committee, which approximate rates charged by commercial lending institutions for comparable loans. Interest rates on loans outstanding at December 31, 1999 ranged between 7% and 10%. 5. NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS The components of the net realized gains and losses and the change in the net unrealized gain and loss on equity investments, which are included in investment income, are as follows: Year Ended December 31, -------------------------------------- 1999 1998 1997 ---- ---- ---- Fixed Income Fund Realized gain (loss) $(29,695) $ 1,424 $ -- Change in net unrealized (loss) (74,114) (386) -- ------------ ----------- ----------- Total Fixed Income Fund (103,809) 1,038 -- ------------ ----------- ----------- Balanced Fund Realized (loss) (53,935) (30,993) -- Change in net unrealized (loss) (30,311) (548,913) -- ------------ ----------- ----------- Total Balanced Fund (84,246) (579,906) -- ------------ ----------- ----------- Equity Fund Realized gain 984,854 4,504,036 1,097,092 Change in net unrealized gain 7,480,246 1,954,763 169,033 ----------- ----------- ----------- Total Equity Fund 8,465,100 6,458,799 1,266,125 ----------- ----------- ----------- Common Stock Fund Realized gain 285,482 278,678 1,569,797 Change in net unrealized (loss) gain (1,552,058) (2,212,560) 1,813,942 ----------- ----------- ----------- Total Common Stock Fund (1,266,576) (1,933,882) 3,383,739 ----------- ----------- ----------- Total net realized and unrealized gain included in investment income $ 7,010,469 $ 3,946,049 $ 4,649,864 =========== =========== =========== F-11

13 THE AMETEK RETIREMENT AND SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 5. NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (continued) The net unrealized gain (loss) on investments included in the Plan's equity is as follows: Common Fixed Income Balanced Equity Stock Total Fund Fund Fund Fund ------------ -------- ------ ----- ----- Balance December 31, 1996 $ -- $ -- $(1,277,995) $ 2,467,897 $ 1,189,902 Change for the year 1997 -- -- 169,033 1,813,942 1,982,975 ----------- ----------- ----------- Balance December 31, 1997 -- -- (1,108,962) 4,281,839 3,172,877 Change for the year 1998 (386) (548,913) 1,954,763 (2,212,560) (807,096) ----------- ----------- ----------- ----------- ----------- Balance December 31, 1998 (386) (548,913) 845,801 2,069,279 2,365,781 Change for the year 1999 (74,114) (30,311) 7,480,246 (1,552,058) 5,823,763 ----------- ----------- ----------- ----------- ----------- Balance December 31, 1999 $ (74,500) $ (579,224) $ 8,326,047 $ 517,221 $ 8,189,544 =========== =========== =========== =========== =========== 6. FEDERAL INCOME TAX STATUS The Plan has received a determination letter from the Internal Revenue Service that the Plan qualifies under Section 401 of the Internal Revenue Code, and is, therefore, exempt from federal income tax. Continued qualification of the Plan is subject to the maintenance of its approved form, or a new Internal Revenue Service determination. Under the Plan, contributions will not be taxed to the employee until a distribution from the Plan is made. However, participants who have invested in insurance contracts are subject to ordinary income tax annually on the premiums paid for the life insurance coverage. 7. EXPENSES The expenses of administering the Plan are payable from the trust funds, unless the Company elects to pay such expenses. For the Plan years ended December 31, 1999, 1998 and 1997, the Company elected to pay such expenses directly. F-12

14 THE AMETEK RETIREMENT AND SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1999 8. DIFFERENCES BETWEEN FINANCIAL STATEMENTS AND FORM 5500 The following is a reconciliation of Plan equity at December 31, 1999 and 1998, presented in the financial statements in accordance with accounting principles generally accepted in the United States, and the reduction for amounts owed to former participants upon withdrawal and termination from the Plan for the year ended December 31, 1999 compared to the amounts reported on Form 5500. Amounts owed to former participants are reported on the Form 5500 for benefit claims that have been processed but not paid at year-end. Such amounts are not recorded as liabilities under accounting principles generally accepted in the United States. Fixed Income Balanced Equity Insurance Fund Fund Fund Contracts ---------------------------------------------------------------------------- Plan Equity December 31, 1999: Plan equity reported in the financial statements $ 50,635,253 $ 13,668,077 $ 82,497,922 $ 419,059 Amounts owed to former participants (1,135,168) (235,701) (1,414,989) -- ------------- ------------- ------------- ------------- Plan equity (net assets) reported on Form 5500 $ 49,500,085 $ 13,432,376 $ 81,082,933 $ 419,059 ============= ============= ============= ============= Plan Equity December 31, 1998: Plan equity reported in the financial statements $ 49,963,840 $ 11,556,169 $ 60,635,375 $ 466,853 Amounts owed to former participants (589,744) (103,511) (569,870) -- ------------- ------------- ------------- ------------- Plan equity (net assets) reported on Form 5500 $ 49,374,096 $ 11,452,658 $ 60,065,505 $ 466,853 ============= ============= ============= ============= Withdrawals and Terminations Year ended December 31, 1999: Withdrawals and terminations reported in the financial statements $ 5,859,879 $ 556,887 $ 4,714,253 $ 76,734 Add: Amounts owed to former participants at December 31, 1999 1,135,168 235,701 1,414,989 -- Less: Amounts owed to former participants at December 31, 1998 (589,744) (103,511) (569,870) -- ------------- ------------- ------------- ------------- Payments to provide benefits reported on Form 5500 $ 6,405,303 $ 689,077 $ 5,559,372 $ 76,734 ============= ============= ============= ============= Common Stock Loan Total Fund Account --------------------------------------------------- Plan Equity December 31, 1999: Plan equity reported in the financial statements $ 7,572,913 $ 6,395,692 $ 161,188,916 Amounts owed to former participants (88,455) (77,862) (2,952,175) ------------- ------------- ------------- Plan equity (net assets) reported on Form 5500 $ 7,484,458 $ 6,317,830 $ 158,236,741 ============= ============= ============= Plan Equity December 31, 1998: Plan equity reported in the financial statements $ 9,338,234 $ 6,245,758 $ 138,206,229 Amounts owed to former participants (47,513) (85,324) (1,395,962) ------------- ------------- ------------- Plan equity (net assets) reported on Form 5500 $ 9,290,721 $ 6,160,434 $ 136,810,267 ============= ============= ============= Withdrawals and Terminations Year ended December 31, 1999: Withdrawals and terminations reported in the financial statements $ 608,202 $ 547,091 $ 12,363,046 Add: Amounts owed to former participants at December 31, 1999 88,455 77,862 2,952,175 Less: Amounts owed to former participants at December 31, 1998 (47,513) (85,324) (1,395,962) ------------- ------------- ------------- Payments to provide benefits reported on Form 5500 $ 649,144 $ 539,629 $ 13,919,259 ============= ============= ============= F-13

15 SIGNATURES THE PLAN. Pursuant to the requirements of the Securities Exchange Act of 1934, the Members of the Administrative Committee have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. The AMETEK Retirement and Savings Plan --------------------------- (Name of Plan) Dated: June 26, 2000 By: /s/ John J. Molinelli -------------------------- John J. Molinelli, Member, Administrative Committee F-14

16 THE AMETEK RETIREMENT AND SAVINGS PLAN EXHIBIT INDEX Exhibit Number Description - -------------- ----------- 23 Consent of Independent Auditors F-15

1 Exhibit 23 Consent of Independent Auditors We consent to the incorporation by reference in the Registration Statements (Form S-8 Nos. 333-34789, 333-80449, 333-87491, and 333-91507) pertaining to the 1997 Stock Incentive Plan of AMETEK, Inc., the 1999 Stock Incentive Plan of AMETEK, Inc., the AMETEK Retirement and Savings Plan and the AMETEK 401(K) Plan for Acquired Businesses, and to the AMETEK Inc. Deferred Compensation Plan, respectively, and in the related Prospectuses, of our report dated June 7, 2000, with respect to the financial statements of the AMETEK Retirement and Savings Plan included in this Annual Report (Form 11-K) for the year ended December 31, 1999. /s/ Ernst & Young LLP Philadelphia, Pennsylvania June 26, 2000