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, 2013
| ¨ | TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number 1-7598
VARIAN MEDICAL SYSTEMS, INC. RETIREMENT PLAN
(Full title of the plan and the address of the plan if different from that of the issuer named below)
VARIAN MEDICAL SYSTEMS, INC.
(Name of issuer of the securities held pursuant to the plan)
3100 HANSEN WAY
PALO ALTO, CALIFORNIA 94304-1129
(Address of issuer’s principal executive office)
VARIAN MEDICAL SYSTEMS, INC.
RETIREMENT PLAN
| Page | ||||
| 1 | ||||
| Financial Statements |
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| 2 | ||||
| 3 | ||||
| 4–12 | ||||
| Supplemental Schedule |
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| Schedule H, Line 4i – Schedule of Assets (Held at End of Year) December 31, 2013 |
13 | |||
| 14 | ||||
| Exhibit 23.1 – Consent of Independent Registered Public Accounting Firm | ||||
| Note: | Other schedules required by 29 CFR 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 (“ERISA”) have been omitted because they are not applicable. |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To Participants and Administrator of the
Varian Medical Systems, Inc. Retirement Plan
We have audited the accompanying statements of net assets available for benefits of the Varian Medical Systems, Inc. Retirement Plan (the Plan) as of December 31, 2013 and 2012, and the related statement of changes in net assets available for benefits for the year ended December 31, 2013. 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 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. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2013 and 2012, and the changes in net assets available for benefits for the year ended December 31, 2013, 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 of Schedule H, Line 4i - Schedule of Assets (Held at End of Year) 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/ BURR PILGER MAYER, INC.
San Francisco, California
June 23, 2014
1
Varian Medical Systems, Inc. Retirement Plan
Statements of Net Assets Available for Benefits
| December 31, | ||||||||
| (in thousands of dollars) | 2013 | 2012 | ||||||
| Assets |
||||||||
| Investments, at fair value (Note 4) |
$ | 751,346 | $ | 643,488 | ||||
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|
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| Receivables |
||||||||
| Notes receivable from participants |
8,200 | 7,766 | ||||||
| Employer contributions |
790 | 826 | ||||||
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|
|
|
|||||
| Total receivable |
8,990 | 8,592 | ||||||
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|
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| Net assets available for benefits at fair value |
760,336 | 652,080 | ||||||
| Adjustment from fair value to contract value for fully benefit-responsive investment contracts |
(775 | ) | (1,532 | ) | ||||
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|
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| Net assets available for benefits |
$ | 759,561 | $ | 650,548 | ||||
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The accompanying notes are an integral part of these financial statements.
2
Varian Medical Systems, Inc. Retirement Plan
Statement of Changes In Net Assets Available for Benefits
| Year Ended | ||||
| December 31, | ||||
| (in thousands of dollars) | 2013 | |||
| Additions to net assets attributed to: |
||||
| Investment income: |
||||
| Net unrealized and realized appreciation in the fair value of investments |
$ | 100,378 | ||
| Dividends and interest income |
26,493 | |||
|
|
|
|||
| Total investment income |
126,871 | |||
| Interest on notes receivable from participants |
322 | |||
| Contributions: |
||||
| Participant |
27,569 | |||
| Rollovers |
2,362 | |||
| Employer |
15,307 | |||
|
|
|
|||
| Total contributions |
45,238 | |||
|
|
|
|||
| Total additions |
172,431 | |||
|
|
|
|||
| Deductions from net assets attributed to: |
||||
| Benefits paid to participants |
63,188 | |||
| Deemed distributions |
5 | |||
| Administrative expenses |
225 | |||
|
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|
|||
| Total deductions |
63,418 | |||
|
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|
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| Net change |
109,013 | |||
| Net assets available for benefits |
||||
| Beginning of year |
650,548 | |||
|
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|
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| End of year |
$ | 759,561 | ||
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|
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The accompanying notes are an integral part of these financial statements.
3
Varian Medical Systems, Inc. Retirement Plan
Notes to Financial Statements
December 31, 2013 and 2012
| 1. | Description of the Plan |
The following brief description of the Varian Medical Systems, Inc. Retirement Plan (the “Plan”) is provided for general information purposes only. Participants should refer to the Plan Document and the Summary Plan Description/Plan Prospectus for more detailed information.
General
The Plan was established to provide benefits to those eligible employees of Varian Medical Systems, Inc. (the “Company”) who elect to participate. The Plan is intended to comply with the applicable requirements of the Internal Revenue Code and the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). The Plan was restated effective January 1, 2013 to incorporate Plan amendments that were adopted since the last Plan restatement.
Administration
The Company is the designated administrator of the Plan. The Company has contracted with Fidelity Institutional Retirement Services Company (“Fidelity”) to maintain the Plan’s individual participant accounts and with Fidelity Management Trust Company (“Fidelity Trust”) to act as the custodian and trustee. Expenses for administering the Plan are primarily the responsibility of the Plan participants. In May 2011, the Company entered into an agreement with the trustee to establish an account in the Plan for an expense reimbursement credit, also referred to as a revenue credit funded by the trustee in the amount of $100,000 per annum. Effective July 1, 2013, funding decreased to $60,000. The account is used to offset the cost of certain Fidelity provided services or reimburse the Company for direct, reasonable and necessary expenses of the Plan. Effective January 1, 2013, the revenue credit amount unused for expenses may be allocated to participant accounts. No amount of unused revenue credit was allocated in fiscal year 2013. As of December 31, 2013, the balance of the revenue credit account was $12,135.
Eligibility
Full-time and part-time employees of the Company (and its subsidiaries that have elected to become participating employers in the Plan) are eligible to enroll in the Plan immediately after they are hired by the Company. Leased employees, employees who are covered by a collective bargaining agreement that does not provide for their participation, nonresident aliens with no U.S. source income and independent contractors are not eligible to participate in the Plan.
Participant Contributions
Participants who elect to participate in the Plan may make a minimum contribution of 1% of their eligible base pay up to a maximum of 25% of their eligible base pay on a pre-tax basis. Participants must complete one year of service before making any after-tax contributions to the Plan, up to a maximum of 15% of their eligible base pay. The Plan includes automatic enrollment for all new employees who do not take affirmative action to enroll or do not decline enrollment, which enrollment will commence as soon as administratively possible after an employee begins work at the Company. Deferral contributions for employees entered under automatic enrollment is 6% of eligible base pay, and is invested in the Vanguard Target Date Funds. Eligible base pay is defined by the Plan and includes an employee’s bonus, if applicable, under the Company’s Management Incentive Plan and Performance Incentive Plan. Employees of the Company may elect to have their Employee Incentive Plan (EIP) bonus paid out in cash or deposited directly to their Plan account in 10% increments. All participant contributions are subject to statutory annual limitations and Plan rules. Participants may make rollover contributions to the Plan representing distributions from other qualified retirement plans.
4
Varian Medical Systems, Inc. Retirement Plan
Notes to Financial Statements (Continued)
December 31, 2013 and 2012
Employer Contributions
Upon completion of one year of service with the Company, participants are entitled to receive Company matching contributions. The Company’s matching contribution is 100% of a participant’s pre-tax and/or after-tax contribution, up to a maximum of 6% of the participant’s eligible base pay. The Company’s matching contribution for an employee’s EIP bonus that is deferred into the Plan is 6%. The Company may make a discretionary retirement profit sharing contribution to the Plan for participants who have completed one year of service and were employed on the last day of the fiscal year or died during the fiscal year. No discretionary Company retirement profit sharing contributions were made for the year ended December 31, 2013.
Participant Accounts
Each participant’s account is credited with the participant’s contributions and allocations of the Company’s contributions and Plan earnings (losses) and charged with an allocation of certain administrative expenses. Allocations are based on participant contributions, eligible base pay, earnings or account balances, as defined in the Plan.
Participants are immediately fully vested in their contributions and Company contributions. Contributions made to the Plan are allocated among a variety of investment funds, including the Varian Medical Systems Stock Fund, offered by the Plan in 1% increments according to the participant’s direction. Participants may transfer account balances and the investment of their future contributions among these funds.
Notes Receivable from Participants
Loans are available to participants who are either active employees or on a leave of absence. Participants are eligible to request a loan from the Plan ranging from $1,000 to the lesser of 50% of the participant’s Plan assets or $50,000. Note receivable balances are also subject to certain other limitations as provided by the Plan. Note receivable balances are collateralized by the balance in the participant’s account and bear interest at the prime rate plus 1% at the date requested. As of December 31, 2013, the interest rates on outstanding notes receivable range from 3.25% to 6% with various maturities. Principal and interest are paid ratably through payroll deductions over five years or less. Upon employment termination, the entire note receivable balance becomes immediately due and payable unless the participant arranges to repay the note receivable through automatic, periodic payments from the participant’s bank account or by using a coupon book for remitting payment.
Payment of Benefits
Upon termination of service on account of death, disability or retirement, a participant or beneficiary may elect to receive either a lump sum amount equal to the value of their accounts or
5
Varian Medical Systems, Inc. Retirement Plan
Notes to Financial Statements (Continued)
December 31, 2013 and 2012
annual installments over a period of years. Upon termination of service for other reasons, a participant’s account will be paid in a single lump sum. If the terminated participant’s account balance is $1,000 or less, it will be distributed to the participant without his/her consent, although a rollover option will be made available. A qualified annuity is available to participants who had after-tax contributions or Company matching contributions prior to January 1, 2003. The Plan allows for in-service withdrawals upon a participant attaining the age of 59 1⁄2. A participant who obtains an in-service withdrawal is required to pay such fees as the Company may impose in order to defray the cost of processing the withdrawal.
Hardship Distributions
Participants are allowed to withdraw funds from the Plan in case of hardship. Withdrawals may be made no more than once a month and must be at least $500 (or such lesser amount as is available for withdrawal). Withdrawals are subject to restrictions as to amount, frequency and intended use of the proceeds. The normal form of payment is cash.
| 2. | Summary of Significant Accounting Policies |
Basis of Accounting
The accompanying financial statements have been prepared on the accrual basis of accounting.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the administrator and trustee to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements. Such estimates include those regarding fair value. Actual results may differ from those estimates.
Fair Value of Financial Instruments
Financial instruments are valued at fair value, refer to the section below entitled “Investment Valuation.” Accounts receivable and notes receivable are carried at cost which is not significantly different from fair value as the accounts receivable are for a short term and notes receivable carry a current market interest rate.
Investment Valuation
Investments of the Plan are held by Fidelity Trust and are invested in the investment options available in the Plan based solely upon instructions received from Plan participants.
6
Varian Medical Systems, Inc. Retirement Plan
Notes to Financial Statements (Continued)
December 31, 2013 and 2012
Accounting standards for fair value measurements establish 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 these accounting standards 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: | |
| • Quoted prices for similar assets or liabilities in active markets; | ||
| • Quoted prices for identical or similar assets or liabilities in inactive markets; | ||
| • Inputs other than quoted prices that are observable for the asset or liability; | ||
| • Inputs that are derived principally from or corroborated by observable market data by correlation or other means. | ||
| 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 asset or liability’s 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, 2013 and 2012:
Mutual funds: Valued at the net asset value (“NAV”) of shares held by the Plan.
Varian Medical Systems, Inc. common stock: Valued at fair value as determined by quoted market prices.
Common/collective trust (“CCT”): Valued at estimated fair value, which has been determined based on the unit value of the CCT as reported by Fidelity Trust. The unit value is determined by Fidelity Trust by dividing the CCT’s net assets at fair value by its units outstanding at the valuation date.
Investment contracts 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 Statements of Net Assets Available for Benefits presents the fair value of the investment contracts as well as the adjustment of the fully benefit-responsive investment contracts from fair value to contract value. The Statement of Changes in Net Assets Available for Benefits is prepared on a contract value basis.
7
Varian Medical Systems, Inc. Retirement Plan
Notes to Financial Statements (Continued)
December 31, 2013 and 2012
Income Recognition
Purchases and sales of securities are recorded on a trade-date basis. The net appreciation in the fair value of investments consists of both net realized gains or losses and the net unrealized appreciation or depreciation on investments.
Notes Receivable from Participants
Notes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest. Delinquent notes receivable are reclassified as distributions based upon the terms of the Plan document.
Payment of Benefits
Benefits are recorded when paid.
| 3. | Investments |
The following table presents the fair value of investments that represent 5% or more of the Plan’s net assets as of December 31, 2013 and 2012:
| December 31, | ||||||||
| (in thousands of dollars) | 2013 | 2012 | ||||||
| Fidelity Growth Company K |
$ | 150,655 | $ | 111,818 | ||||
| Vanguard Institutional Index |
$ | 121,445 | $ | 95,816 | ||||
| PIMCO Total Return |
$ | 89,910 | $ | 105,438 | ||||
| Fidelity Managed Income Portfolio II |
$ | 55,023 | $ | 56,499 | ||||
| Fidelity Balanced K |
$ | 54,419 | $ | 45,817 | ||||
| NB Genesis Trust |
$ | 47,963 | $ | 39,484 | ||||
| Vanguard Target Return 2030 |
$ | 40,109 | $ | 27,608 | * | |||
| * | The balance as of December 31, 2012 was less than 5% of total assets |
The Plan’s investments, including investments bought, sold and held, during 2013 appreciated in value by $100,378,000 as follows:
| (in thousands of dollars) | ||||
| Mutual funds |
$ | 97,962 | ||
| Company stock fund |
2,416 | |||
|
|
|
|||
| $ | 100,378 | |||
|
|
|
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8
Varian Medical Systems, Inc. Retirement Plan
Notes to Financial Statements (Continued)
December 31, 2013 and 2012
Investment Contracts
The Fidelity Managed Income Portfolio II Fund is designed to provide preservation of capital and returns that are consistent regardless of stock and bond market volatility. The Fund seeks to earn a high level of income consistent with those objectives. The Fund holds guaranteed investment contracts which typically have a fixed maturity. Each contract contains a provision that the issuer will, if required, repay principal at the stated contract value for the purpose of paying benefit payments (fully benefit-responsive).
The Fidelity Managed Income Portfolio II Fund is presented at fair value on the Statements of Net Assets Available for Benefits. The adjustment from fair value to contract value is based on the contract value as reported by Fidelity Trust (which represents contributions made under the contracts, plus earnings, less withdrawals and administrative expenses).
| 4. | Fair Value Measurements |
The following tables set forth by level, within the fair value hierarchy, the Plan’s assets at fair value as of December 31, 2013 and 2012:
| Investments at Fair Value as of December 31, 2013 | ||||||||||||||||
| (in thousands of dollars) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Large growth funds |
$ | 150,655 | $ | — | $ | — | $ | 150,655 | ||||||||
| Large blend funds |
121,445 | — | — | 121,445 | ||||||||||||
| Target date funds |
116,597 | — | — | 116,597 | ||||||||||||
| Intermediate term bond funds |
98,520 | — | — | 98,520 | ||||||||||||
| Small blend funds |
72,402 | — | — | 72,402 | ||||||||||||
| Moderate allocation funds |
54,419 | — | — | 54,419 | ||||||||||||
| Foreign large blend |
30,516 | — | — | 30,516 | ||||||||||||
| Foreign large value |
16,834 | — | — | 16,834 | ||||||||||||
| Inflation protected bonds |
6,253 | — | — | 6,253 | ||||||||||||
| Retirement income funds |
5,040 | — | — | 5,040 | ||||||||||||
|
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|
|
|
|
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|
|
|||||||||
| Total mutual funds |
672,681 | 672,681 | ||||||||||||||
| Money market funds |
426 | — | — | 426 | ||||||||||||
| Common / collective trust |
— | 55,023 | — | 55,023 | ||||||||||||
| Varian Medical Systems, Inc. common stock |
23,216 | — | — | 23,216 | ||||||||||||
|
|
|
|
|
|
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|
|
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| $ | 696,323 | $ | 55,023 | $ | — | $ | 751,346 | |||||||||
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|
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|
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|
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9
Varian Medical Systems, Inc. Retirement Plan
Notes to Financial Statements (Continued)
December 31, 2013 and 2012
| Investments at Fair Value as of December 31, 2012 | ||||||||||||||||
| (in thousands of dollars) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Intermediate term bond funds |
$ | 115,739 | $ | — | $ | — | $ | 115,739 | ||||||||
| Large growth funds |
111,818 | — | — | 111,818 | ||||||||||||
| Large blend funds |
95,816 | — | — | 95,816 | ||||||||||||
| Target date funds |
84,871 | — | — | 84,871 | ||||||||||||
| Small blend funds |
53,052 | — | — | 53,052 | ||||||||||||
| Moderate allocation funds |
45,817 | — | — | 45,817 | ||||||||||||
| Foreign large blend |
25,196 | — | — | 25,196 | ||||||||||||
| Inflation protected bonds |
15,658 | — | — | 15,658 | ||||||||||||
| Foreign large value |
11,250 | — | — | 11,250 | ||||||||||||
| Retirement income funds |
3,906 | — | — | 3,906 | ||||||||||||
|
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|
|
|||||||||
| Total mutual funds |
563,123 | 563,123 | ||||||||||||||
| Money market funds |
399 | — | — | 399 | ||||||||||||
| Common / collective trust |
— | 56,499 | — | 56,499 | ||||||||||||
| Varian Medical Systems, Inc. common stock |
23,467 | — | — | 23,467 | ||||||||||||
|
|
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|
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|
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|
|
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| $ | 586,989 | $ | 56,499 | $ | — | $ | 643,488 | |||||||||
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The carrying amounts equal fair value of the Plan’s financial instruments at December 31, 2013 and 2012.
| 5. | Party-In-Interest and Related Party Transactions |
As allowed by the Plan, participants may elect to invest up to 25% of their contributions and/or 25% of their account balance in the Varian Medical Systems Stock Fund. Investments in the Company’s common stock at December 31, 2013, and 2012 consisted of 376,493 and 419,644 shares, respectively, with fair market values of approximately $23,216,000 and $23,467,000, respectively. The Varian Medical Systems Stock Fund invests primarily in the Company’s common stock. The remainder of the Varian Medical Systems Stock Fund, approximately $426,000 and $399,000 at December 31, 2013, and 2012, respectively, is invested in the Fidelity Institutional Money Market Portfolio to allow for timely handling of exchanges, withdrawals and distributions.
Certain investments are shares of mutual funds managed by an affiliate of Fidelity Trust, and therefore these transactions qualify as party-in-interest. Any purchases and sales of these funds are open market transactions at fair market value. Consequently, such transactions are permitted under the provisions of the Plan and are exempt from the prohibition of party-in-interest transactions under ERISA. Administrative expenses paid by the Plan for the year ended December 31, 2013 were approximately $225,000.
| 6. | Income Tax Status |
The Plan obtained its current determination letter, in which the Internal Revenue Service stated that the Plan design is in compliance with the applicable requirements of the Internal Revenue Code, on February 6, 2013. Therefore, no provision for income taxes has been included in the Plan’s financial statements.
10
Varian Medical Systems, Inc. Retirement Plan
Notes to Financial Statements (Continued)
December 31, 2013 and 2012
Accounting principles generally accepted in the United States of America require plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the Internal Revenue Service. The Plan has not recorded a liability for any uncertain tax positions. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The Plan Administrator believes that the Plan is no longer subject to income tax examinations for the years prior to 2010.
| 7. | 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.
| 8. | Risks and Uncertainties |
The Plan provides participants with investment options in mutual funds, a CCT, and Varian Medical Systems, Inc. common stock. These investment securities are exposed to various risks, such as those associated with interest rates, market conditions and credit-worthiness of the securities’ issuers. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in risks in the near term could materially affect participants’ account balances and the amounts reported in the financial statements.
| 9. | Reconciliation to Form 5500 |
The following schedule is a reconciliation of net assets available for benefits and changes in net assets available for benefits per the financial statements to the Form 5500 as of December 31, 2013 and 2012:
| (in thousands of dollars) | 2013 | 2012 | ||||||
| Net assets available for benefits per the financial statements |
$ | 759,561 | $ | 650,548 | ||||
| Adjustment from contract value to fair value for fully benefit- responsive investment contracts |
775 | 1,532 | ||||||
|
|
|
|
|
|||||
| Net assets available for benefits per the Form 5500 |
$ | 760,336 | $ | 652,080 | ||||
|
|
|
|
|
|||||
| Change in net assets available for benefits per the financial statements |
$ | 109,013 | ||||||
| Change in adjustment from contract value to fair value for fully benefit-responsive investment contracts |
(757 | ) | ||||||
|
|
|
|||||||
| Change in net assets available for benefits per the Form 5500 |
$ | 108,256 | ||||||
|
|
|
|||||||
| 10. | Subsequent Events |
In accordance with accounting standards affecting disclosures of subsequent events, the Plan Administrator evaluated subsequent events for recognition and disclosure through the date which
11
Varian Medical Systems, Inc. Retirement Plan
Notes to Financial Statements (Continued)
December 31, 2013 and 2012
these financial statements were issued. Effective January 1, 2014, the revenue credit arrangement annual funding was increased to $115,000. The Plan Administrator concluded that no other material subsequent event has occurred since December 31, 2013 that requires recognition or disclosure in such financial statements.
12
| Varian Medical Systems, Inc. Retirement Plan | EIN: 94-2359345 | |
| Schedule H, Item 4i – Schedule of Assets (Held at End of Year) December 31, 2013 |
Plan #: 002 |
| (a) | (b) | (c) | (e) | |||||||||
|
|
Identity of Issuer, Borrower, Lessor or Similar Party |
Description of Investment, including Maturity Date, Rate of Interest, Collateral, Par, or Maturity Value |
Current Value |
|||||||||
| * | Fidelity Growth Company K | Mutual Fund | $ | 150,655,248 | ||||||||
| Vanguard Institutional Index | Mutual Fund | 121,445,378 | ||||||||||
| PIMCO Total Return | Mutual Fund | 89,910,366 | ||||||||||
| * | Fidelity Balanced K | Mutual Fund | 54,418,850 | |||||||||
| NB Genesis Trust | Mutual Fund | 47,963,268 | ||||||||||
| Vanguard Target Ret 2030 | Mutual Fund | 40,109,292 | ||||||||||
| Vanguard Target Ret 2020 | Mutual Fund | 33,377,687 | ||||||||||
| Vanguard Target Ret 2040 | Mutual Fund | 27,313,914 | ||||||||||
| * | Fidelity Diversified International K | Mutual Fund | 24,829,496 | |||||||||
| Vanguard Small Cap Index Inst. | Mutual Fund | 24,438,319 | ||||||||||
| Dodge & Cox International Stock | Mutual Fund | 16,833,793 | ||||||||||
| Vanguard Total Bond Market Inst. | Mutual Fund | 8,609,953 | ||||||||||
| Vanguard Target Ret 2010 | Mutual Fund | 7,917,822 | ||||||||||
| Vanguard Target Ret 2050 | Mutual Fund | 7,878,416 | ||||||||||
| PIMCO Real Return Institutional | Mutual Fund | 6,252,788 | ||||||||||
| * | Spartan International Index | Mutual Fund | 5,686,240 | |||||||||
| Vanguard Target Ret Inc | Mutual Fund | 5,040,167 | ||||||||||
| * | Fidelity Managed Income Portfolio II | Common/Collective Trust | ^ | 54,248,884 | ||||||||
| * | Varian Medical Systems, Inc. Stock | Common Stock | 23,215,651 | |||||||||
| * | Fidelity Institutional Money Market | Cash, various interest | 426,076 | |||||||||
| * | Participant Loans | Interest rates from 3.25% to 6%, various maturities |
8,200,097 | |||||||||
|
|
|
|||||||||||
| $ | 758,771,705 | |||||||||||
|
|
|
|||||||||||
| * | Party-in-interest. |
| ^ | Presented at contract value. |
13
Pursuant to the requirements of the Securities Exchange Act of 1934, the trustee (or other persons who administer the employee benefit plan) has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
| VARIAN MEDICAL SYSTEMS INC. | ||
| RETIREMENT PLAN | ||
| By: | Varian Medical Systems, Inc. | |
| By: | /s/ Wendy Scott | |
| Wendy Scott | ||
| Senior Vice President, Chief Human Resources Officer | ||
Date: June 23, 2014
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