FLIR Systems, Inc.
FLIR SYSTEMS INC (Form: 11-K/A, Received: 07/13/2012 16:52:34)
Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 11-K/A

Amendment #1

 

 

(Mark one)

 

x ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

for the fiscal year ended December 31, 2011

OR

 

¨ TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

for the transition period from             to             .

Commission file number 0-21918

 

 

 

A. Full title of the plan and the address of the plan, if different from that of the issued named below:

FLIR Systems, Inc. 401(k) Savings Plan

27700 SW Parkway Avenue

Wilsonville, Oregon 97070

 

B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive officers:

FLIR Systems, Inc.

27700 SW Parkway Avenue

Wilsonville, Oregon 97070

 

 

 


Table of Contents

FLIR SYSTEMS, INC.

401(k) SAVINGS PLAN

This Form 11-K/A is being filed to correct mathematical errors on the Statement of Changes in Net Assets Available for Benefits.

Table of Contents

 

     Page  

Report of Independent Registered Public Accounting Firm

     1   

Financial Statements:

  

Statements of Net Assets Available for Benefits – December 31, 2011 and 2010

     2   

Statements of Changes in Net Assets Available for Benefits for the years ended December  31, 2011 and 2010

     3   

Notes to Financial Statements

     4   

Supplemental Schedule

  

Schedule I – Schedule H, Line  4i – Schedule of Assets (Held at end of Year) – December 31, 2011

     14   

Schedule II – Schedule H, Line 4a – Schedule of Delinquent Participant Contributions – Year ended December 31, 2011

     15   


Table of Contents

Report of Independent Registered Public Accounting Firm

The Plan Administrator

FLIR Systems, Inc. 401(k) Savings Plan:

We have audited the accompanying statements of net assets available for benefits of FLIR Systems, Inc. 401(k) Savings Plan (the Plan) as of December 31, 2011 and 2010, 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 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, 2011 and 2010, and the 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 schedules – schedule H, line 4i – schedule of assets (held at end of year) as of December 31, 2011 and schedule H, line 4a – schedule of delinquent participant contributions for the year ended December 31, 2011 are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are 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. The supplemental schedules are the responsibility of the Plan’s management. The supplemental schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ KPMG LLP

Portland, Oregon

July 13, 2012


Table of Contents

FLIR SYSTEMS, INC.

401(k) SAVINGS PLAN

Statements of Net Assets Available for Benefits

December 31, 2011 and 2010

 

     2011     2010  

Participant directed investments, at fair value:

    

Shares in registered investment company funds:

    

Fidelity Retirement Money Market Portfolio

   $ 12,082,113      $ 10,772,633   

PIMCO Total Return Fund

     16,921,419        15,230,396   

DFA Emerging Markets Value Portfolio

     13,579,754        17,337,799   

Baron Growth Fund

     12,179,448        11,514,427   

Vanguard Mid-Cap Index Signal Fund

     7,986,221        6,632,724   

Spartan US Equity Index Fund

     7,523,707        6,988,386   

Dodge & Cox Stock Fund

     6,252,469        6,041,085   

Goldman Sachs Mid Cap Value Fund Institutional Class

     4,538,810        4,599,444   

JPMorgan Large Cap Growth Fund

     3,329,597        —     

Templeton Global Bond Fund

     2,579,081        1,110,627   

Royce Pennsylvania Mutual Investment Fund

     2,404,765        1,363,390   

Neuberger Berman Real Estate Fund

     1,049,507        —     

Growth Fund of America

     —          3,508,103   

Fidelity Contrafund

     16,261,292        14,767,481   

Fidelity Balanced Fund

     9,354,826        8,481,441   

Fidelity Diversified International Fund

     8,169,400        9,020,762   

Fidelity Freedom Income Fund

     610,941        610,715   

Fidelity Freedom 2000 Fund

     85,771        63,247   

Fidelity Freedom 2005 Fund

     37,525        103,771   

Fidelity Freedom 2010 Fund

     637,964        606,465   

Fidelity Freedom 2015 Fund

     3,030,475        2,356,326   

Fidelity Freedom 2020 Fund

     3,933,022        2,393,519   

Fidelity Freedom 2025 Fund

     4,135,094        2,871,979   

Fidelity Freedom 2030 Fund

     5,549,741        3,986,026   

Fidelity Freedom 2035 Fund

     3,237,520        2,234,539   

Fidelity Freedom 2040 Fund

     2,318,041        1,289,446   

Fidelity Freedom 2045 Fund

     1,722,710        934,838   

Fidelity Freedom 2050 Fund

     948,014        507,568   

Common and collective trust:

    

Fidelity Managed Income Portfolio

     6,244,346        4,225,863   

Common stock:

    

FLIR Systems, Inc.

     20,690,000        28,347,183   
  

 

 

   

 

 

 

Total investments

     177,393,573        167,900,183   
  

 

 

   

 

 

 

Receivables:

    

Notes receivable from participants

     2,324,820        2,026,793   

Participant contributions

     356,557        —     

Employer contributions

     147,510        —     

Pending trades

     —          6,825   
  

 

 

   

 

 

 

Total receivables

     2,828,887        2,033,618   
  

 

 

   

 

 

 

Total

     180,222,460        169,933,801   

Adjustment from fair value to contract value for fully benefit-responsive investment contracts

     (154,010     (34,360
  

 

 

   

 

 

 

Net assets available for benefits

   $ 180,068,450      $ 169,899,441   
  

 

 

   

 

 

 

See accompanying notes to financial statements.

 

2


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FLIR SYSTEMS, INC.

401(k) SAVINGS PLAN

Statements of Changes in Net Assets Available for Benefits

Years ended December 31, 2011 and 2010

 

     2011     2010  

Contributions:

    

Participant

   $ 16,053,890      $ 12,121,001   

Rollover

     944,897        1,623,251   

Employer

     7,625,319        5,737,609   
  

 

 

   

 

 

 

Total contributions

     24,624,106        19,481,861   

Investment (loss) income:

    

Dividend income

     3,570,132        3,361,939   

Interest income

     77,373        50,926   

Net (depreciation) appreciation in fair value of investments

     (13,866,840     10,023,395   
  

 

 

   

 

 

 

Total investment (loss) income

     (10,219,335     13,436,260   

Interest on notes receivable from participants

     114,572        101,920   

Deductions:

    

Benefits and withdrawals paid to participants

     13,395,912        7,930,622   

Administrative expenses

     6,228        4,002   
  

 

 

   

 

 

 

Total deductions

     13,402,140        7,934,624   
  

 

 

   

 

 

 

Net increase

     1,117,203        25,085,417   

Transfer of assets from another plan

     9,051,806        —     

Net assets available for benefits, beginning year

     169,899,441        144,814,024   
  

 

 

   

 

 

 

Net assets available for benefits, end of year

   $ 180,068,450      $ 169,899,441   
  

 

 

   

 

 

 

See accompanying notes to financial statements.

 

3


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FLIR SYSTEMS, INC.

401(k) SAVINGS PLAN

Notes to Financial Statements

December 31, 2011 and 2010

 

(1) Plan Description

The following description of the FLIR Systems, Inc. 401(k) Savings Plan (the “Plan”), as amended and restated effective January 1, 2006 is provided for general information purposes only. More complete information regarding the Plan’s provisions may be found in the Plan document.

 

  (a) General

The Plan is a defined contribution plan established by FLIR Systems, Inc. (the “Company”) under the provisions of Section 401(a) of the Internal Revenue Code (the “IRC”), which includes a qualified cash or deferred arrangement as described in Section 401(k) of the IRC, for the benefit of eligible employees of the Company. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).

Under the terms of the agreement between the Company and Fidelity Management Trust Company (the Trustee), all investments of the Plan are held in a trust by the Trustee. A committee comprised of management employees of the Company administers the Plan.

In May 2010, the Company acquired all of the outstanding stock of Raymarine Holdings Limited (“Raymarine”) and effective on the acquisition date, all eligible participants in the ADP Total Source Retirement Savings Plan (the “ADP Plan”) were immediately fully vested in the benefits provided pursuant to the ADP Plan. Effective January 2011, the participant accounts of all current and former employees for Raymarine who participated in the ADP Plan were transferred from the ADP Plan to the Plan.

 

  (b) Eligibility

Employees are eligible to participate in the Plan if the employee is not covered by a collective bargaining agreement and is not a nonresident alien.

Participants may begin participating on the first day of the month following employment. Eligible employees are automatically enrolled in the Plan after their first 60 days of employment with a contribution of 3% of compensation invested in the age-appropriate Fidelity Freedom Fund unless they elect otherwise. Eligible employees who do not want to participate in the Plan are required to explicitly decline to participate.

 

  (c) Contributions

Eligible employees may contribute an amount between 1% and 100% of compensation as defined by the Plan, not to exceed the maximum amount allowed under the federal tax laws. The Company may, at the discretion of management, make a discretionary matching and/or profit sharing contribution to the Plan. In 2011 and 2010, the discretionary matching contributions were equal to 50% of the employee’s contributions. During the years ended December 31, 2011 and 2010, there were no discretionary profit sharing contributions.

 

(Continued)

 

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FLIR SYSTEMS, INC.

401(k) SAVINGS PLAN

Notes to Financial Statements

December 31, 2011 and 2010

 

  (d) Vesting

Participants are fully vested in their contributions, transfers from other qualified plans and the earnings thereon. Vesting in the participant’s share of Company matching and discretionary profit sharing contributions and the earnings thereon is based on years of continuous service, according to the following schedule:

 

Years of service

   Percentage
vested
 

Less than 1

     —  

1 but less than 2

     34   

2 but less than 3

     67   

3 or more

     100   

A participant becomes 100% vested in the participant’s share of Company matching contributions and the earnings thereon upon reaching age 65, death, or total and permanent disability while employed.

 

  (e) Notes Receivable from Participants

Notes receivable from participants are carried at amortized cost plus accrued interest.

Participants may borrow the lesser of $50,000 or 50% of their vested account balance, subject to a $2,500 minimum and certain other restrictions. As the participant repays these loans, the proceeds, including interest, are returned to the participant’s account. Loans are repayable through payroll deductions over periods ranging up to 10 years for residential loans or up to five years for all other loans. Participants were previously allowed to repay loans over periods greater than five years if for the purchase of a primary residence. The interest rate on loans is the prime rate on the first business day of the month in which the participant requests the loan plus 1.0%. Interest rates on outstanding loans at December 31, 2011 ranged from 4.25% to 9.25%, with maturities through 2021.

 

  (f) Benefits

Upon termination of service for any reason, including a death or disability, a participant (or in the case of death, the participant’s beneficiary) may elect to receive either a lump-sum amount equal to the value of the participant’s vested interest in his or her account, or annual installments over a period not to exceed the beneficiary’s assumed life expectancy.

 

  (g) Withdrawals

Except upon death, total disability, termination, retirement or attainment of 59  1 / 2  years of age, withdrawal of participant balances requires approval of the Plan Administrator. Such approval is limited to cases of financial hardship, as allowed by the IRC. Participants who obtained a hardship withdrawal are prohibited from making elective deferrals for a period of six months from the date of the withdrawal.

 

(Continued)

 

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FLIR SYSTEMS, INC.

401(k) SAVINGS PLAN

Notes to Financial Statements

December 31, 2011 and 2010

 

  (h) Participant Accounts

Individual accounts are maintained for each of the Plan’s participants to reflect the participant’s contributions, the Company’s matching contributions and an allocation of the Plan’s net earnings and related administrative expenses. Allocation of earnings is based on the number of units of various investment funds assigned to each participant’s account. Participant accounts are valued daily.

 

  (i) Breaks in Service and Forfeited Accounts

A one-year break in service occurs in any plan year during which a participant does not have more than 500 hours of service. Upon resuming participation in the Plan, a participant’s nonvested account balance will be restored, provided the participant had less than five consecutive one-year breaks in service and any vested amounts previously distributed are repaid to the Plan. Any forfeiture of nonvested portions of the Company’s contribution account balance is utilized to offset Company contributions. During 2011 and 2010, forfeitures totaling approximately $66,000 and $55,000, respectively, were used to reduce employer contributions. At December 31, 2011 and 2010, forfeitures totaling approximately $102,000 and $87,000, respectively, were available to reduce future employer contributions.

 

  (j) Investment Options

Participants may direct their elective contributions, including Company matching contributions, and any related earnings, into a variety of funds and into the Company’s common stock. Changes to contribution allocations may be made by participants on a daily basis. Exchanges between investment options may also be made by participants on a daily basis; however, exchanges involving the Company’s common stock are subject to the Company’s Insider Trading and Disclosure policy and other restrictions.

 

(2) Summary of Significant Accounting Policies

 

  (a) Basis of Accounting

The accompanying financial statements are prepared on the accrual basis of accounting. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires the Plan’s management to make estimates and assumptions that affect the accompanying financial statements and disclosures. Actual results could differ from those estimates.

 

  (b) Fair Value Measurements

Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures , provides the 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) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under FASB ASC 820 are described as follows:

 

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.

 

(Continued)

 

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FLIR SYSTEMS, INC.

401(k) SAVINGS PLAN

Notes to Financial Statements

December 31, 2011 and 2010

 

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; and

 

   

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’s 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 observable inputs.

Following is a description of the valuation methodologies used for assets measured at fair value.

Common Stock and Registered Investment Company Funds : Valued at the quoted market price of shares held by the plan at year end.

Common and Collective Trust : Valued at fair value by discounting the related cash flows based on current yields of similar instruments with comparable durations considering the credit-worthiness of the issuer (see note 2 (c)).

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

 

(Continued)

 

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FLIR SYSTEMS, INC.

401(k) SAVINGS PLAN

Notes to Financial Statements

December 31, 2011 and 2010

 

The following table sets forth by level, within the fair value hierarchy, the Plan’s assets at fair value as of December 31, 2011:

 

     Investments at estimated fair value
at December 31, 2011
 
     Level 1      Level 2      Level 3      Total  

Common stock

   $ 20,690,000       $ —         $ —         $ 20,690,000   

Shares in registered investment company funds:

           

Money Market Fund

     12,082,113         —           —           12,082,113   

Bond

     19,500,500         —           —           19,500,500   

International

     21,749,154         —           —           21,749,154   

Balanced

     9,354,826         —           —           9,354,826   

Small Cap Growth Equity

     12,179,448         —           —           12,179,448   

Large Cap Growth Equity

     19,590,889         —           —           19,590,889   

Small Cap Blend Equity

     2,404,765         —           —           2,404,765   

Mid Cap Blend Equity

     7,986,221         —           —           7,986,221   

Large Cap Blend Equity

     7,523,707         —           —           7,523,707   

Large Cap Value Equity

     6,252,469         —           —           6,252,469   

Mid Cap Value Equity

     4,538,810         —           —           4,538,810   

Specialty

     1,049,507         —           —           1,049,507   

Lifestyle—Conservative

     1,372,201         —           —           1,372,201   

Lifestyle—Moderate

     16,648,332         —           —           16,648,332   

Lifestyle—Aggressive

     8,226,285         —           —           8,226,285   

Common and collective trust:

           

Stable Value

     —           6,244,346         —           6,244,346   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total investments

   $ 171,149,227       $ 6,244,346       $ —         $ 177,393,573   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(Continued)

 

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FLIR SYSTEMS, INC.

401(k) SAVINGS PLAN

Notes to Financial Statements

December 31, 2011 and 2010

 

The following table sets forth by level, within the fair value hierarchy, the Plan’s assets at fair value as of December 31, 2010:

 

     Investments at estimated fair value
at December 31, 2010
 
     Level 1      Level 2      Level 3      Total  

Common stock

   $ 28,347,183       $ —         $ —         $ 28,347,183   

Shares in registered investment company funds:

           

Money Market Fund

     10,772,633         —           —           10,772,633   

Bond

     16,341,023         —           —           16,341,023   

International

     26,358,561         —           —           26,358,561   

Balanced

     8,481,441         —           —           8,481,441   

Small Cap Growth Equity

     11,514,427         —           —           11,514,427   

Large Cap Growth Equity

     18,275,584         —           —           18,275,584   

Small Cap Blend Equity

     1,363,390         —           —           1,363,390   

Mid Cap Blend Equity

     6,632,724         —           —           6,632,724   

Large Cap Blend Equity

     6,988,386         —           —           6,988,386   

Large Cap Value Equity

     6,041,085         —           —           6,041,085   

Mid Cap Value Equity

     4,599,444         —           —           4,599,444   

Lifestyle – Conservative

     1,384,198         —           —           1,384,198   

Lifestyle – Moderate

     11,607,850         —           —           11,607,850   

Lifestyle – Aggressive

     4,966,391         —           —           4,966,391   

Common and collective trust:

           

Stable value

     —           4,225,863         —           4,225,863   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total investments

   $ 163,674,320       $ 4,225,863       $ —         $ 167,900,183   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (c) Investment Valuation

Investments are reported at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. See note 2(b) for a discussion of fair value measurements.

The Fidelity Managed Income Portfolio Fund (the “MIP Fund”) is a common and collective trust fund investing primarily in guaranteed investment contracts (“GIC”), synthetic GICs and U.S. government securities. The GICs are fully benefit-responsive. 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 present the fair value of the investments in the common and collective trust fund relating to fully benefit-responsive investment contracts as well as the adjustment of the investments in the common and collective trust fund relating to fully benefit-responsive investment contracts from fair value to contract value. The

 

(Continued)

 

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FLIR SYSTEMS, INC.

401(k) SAVINGS PLAN

Notes to Financial Statements

December 31, 2011 and 2010

 

statements of changes in net assets available for benefits are prepared on a contract value basis. The fair value of the MIP Fund was calculated by discounting the related cash flows and the fair values of the underlying investments and the wrapper contracts using a discounted cash flow model that considers recent fee bids as determined by recognized dealers, discount rate, and the duration of the underlying portfolio securities. The overall effective yield and crediting interest rate for that fund was approximately 1.9% and 1.4%, respectively for 2011 and 2.7% and 1.4%, respectively, for 2010.

The Plan assets are invested in various investments. Investment securities, in general, are exposed to various risks, such as interest rate, credit and overall market volatility risks. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the statements of net assets available for benefits.

The Plan invests in securities with contractual cash flows, such as asset backed securities, collateralized mortgage obligations and commercial mortgage backed securities, including securities backed by subprime mortgage loans. The value, liquidity and related income of these securities are sensitive to changes in economic conditions, including real estate value, delinquencies or defaults, or both, and may be adversely affected by shifts in the market’s perception of the issuers and changes in interest rates.

Certain events limit the ability of the Plan to transact contract value with Fidelity. Such events include: the Plan’s failure to qualify under section 401(a) of the IRC; the establishment of a Plan or similar fund that competes for employee contributions; changes in laws or regulations that could have a material adverse effect on the MIP fund’s cash flow; communication to participants influencing them to not invest in the MIP fund. The plan administrator does not believe that any events which would limit the Plan’s ability to transact at contract value with participants are probable of occurring. There are no reserves against contract value for credit risk of the issuer or otherwise.

 

  (d) Income Recognition

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recognized as earned on the accrual basis. Dividend income is recorded on the ex-dividend date.

 

  (e) Net (Depreciation) Appreciation in Fair Value of Investments

Net (depreciation) appreciation consists of the net change in unrealized appreciation and depreciation during the year on investments held at the end of the year and the net realized gain and loss on investments sold during the year.

Brokerage fees are added to the acquisition cost of assets purchased and subtracted from the proceeds of assets sold.

 

  (f) Payment of Benefits

Benefit payments to participants are recorded upon distribution.

 

(Continued)

 

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FLIR SYSTEMS, INC.

401(k) SAVINGS PLAN

Notes to Financial Statements

December 31, 2011 and 2010

 

  (g) Administrative expenses

Administrative expenses are generally paid by the Plan Sponsor. Certain loan and distribution expenses are paid by the respective participant from their account balance and are included in the statement of changes in net assets available for benefits.

 

(3) Investments

The following presents investments that represent 5% or more of the Plan’s net assets available for benefits at December 31, 2011 and 2010:

 

     2011      2010  

Shares in registered investment company funds:

     

Fidelity Retirement Money Market Portfolio

   $ 12,082,113       $ 10,772,633   

PIMCO Total Return Fund

     16,921,419         15,230,396   

DFA Emerging Markets Value Portfolio

     13,579,754         17,337,799   

Baron Growth Fund

     12,179,448         11,514,427   

Fidelity Contrafund

     16,261,292         14,767,481   

Fidelity Balanced Fund

     9,354,826         *   

Fidelity Diversified International Fund

     *         9,020,762   

Common stock:

     

FLIR Systems, Inc.

     20,690,000         28,347,183   

 

* Balances were less than 5% of total net assets available for benefits for the period.

Net (depreciation) appreciation in fair value of investments is comprised of the following for the year ended December 31, 2011 and 2010:

 

     2011     2010  

Shares in registered investment company funds

   $ (10,280,094   $ 13,186,499  

FLIR Systems, Inc. common stock

     (3,586,746     (3,163,104
  

 

 

   

 

 

 
   $ (13,866,840   $ 10,023,395  
  

 

 

   

 

 

 

 

(4) Tax Status

The Internal Revenue Service has determined and informed the Company by a letter dated January 27, 2009, that the Plan is qualified and that the trust established under the Plan is tax-exempt, under the appropriate sections of the IRC. The Plan has been amended since that date, however, management believes that the Plan is designed and continues to operate in compliance with the IRC.

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 organization has taken an uncertain position that more likely than not would not be sustained upon examination by the Internal Revenue Service. The plan administrator has analyzed the tax positions taken by the plan, and has concluded that as of December 31, 2011, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the

 

(Continued)

 

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FLIR SYSTEMS, INC.

401(k) SAVINGS PLAN

Notes to Financial Statements

December 31, 2011 and 2010

 

financial statements. 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 it is no longer subject to income tax examinations for years prior to 2009.

 

(5) Plan Termination

Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants will become 100% vested in their accounts. The Company may elect, at its discretion, to make a complete distribution of the assets or to continue the trust created by the Plan and distribute benefits in such a manner as though the Plan has not been terminated.

 

(6) Related Party Transactions

Certain Plan investments are shares in registered investment company funds and a common collective trust managed by Fidelity Investments, an affiliate of the Trustee as defined by the Plan and, therefore, these transactions qualified as party-in-interest transactions.

The Plan allows for investments in the Company’s common stock. The Company is the Plan Sponsor, therefore, these transactions qualify as party-in-interest transactions. These transactions are covered by an exemption from the “prohibited transactions” in provisions of ERISA and the IRC.

 

(7) Delinquent Participant Contributions

During 2011, the Company failed to remit to the plan’s trustees certain employee contributions totaling $481 within the period prescribed by Department of Labor regulations.

 

(8) Reconciliation to the Form 5500

The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500:

 

     December 31  
     2011     2010  

Net assets available for benefits per the financial statements

   $ 180,068,450     $ 169,899,441  

Deemed distributions of participant loans not recorded on the financial statements

     (122,029     (76,470

Adjustment from fair value to contract value for fully benefit-responsive investment contracts

     154,010       34,360  
  

 

 

   

 

 

 

Net assets available for benefits per the Form 5500

   $ 180,100,431     $ 169,857,331  
  

 

 

   

 

 

 

 

(Continued)

 

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Table of Contents

FLIR SYSTEMS, INC.

401(k) SAVINGS PLAN

Notes to Financial Statements

December 31, 2011 and 2010

 

The following is a reconciliation of net (depreciation) appreciation in fair value of investments per the financial statements to the Form 5500:

 

     Year ended December 31  
     2011     2010  

Net (depreciation) appreciation in fair value of investments per the financial statements

   $ (13,866,840   $ 10,023,395  

Adjustment from fair value to contract value for fully benefit responsive investment contracts

     119,650       96,868  
  

 

 

   

 

 

 

Net (depreciation) appreciation in fair value of investments per the Form 5500

   $ (13,747,190   $ 10,120,263  
  

 

 

   

 

 

 

The following is a reconciliation of benefits and withdrawals paid to participants per the financial statements to the Form 5500:

 

     Year ended December 31  
     2011      2010  

Benefits and withdrawals per the financial statements

   $ 13,395,912      $ 7,930,622  

Change in deemed distributions of participant loans

     45,559        1,496  
  

 

 

    

 

 

 

Benefit payments per the Form 5500

   $ 13,441,471      $ 7,932,118  
  

 

 

    

 

 

 

 

(9) Subsequent Events

Effective March 1, 2012, eligible employees may contribute an amount up to 60% of compensation, instead of 100%, as defined by the Plan, subject to limitations in accordance with IRC.

 

(Continued)

 

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Schedule I

FLIR SYSTEMS, INC.

401(k) SAVINGS PLAN

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

December 31, 2011

 

Identity of issue, borrower, lessor, or similar party

 

Description of investment, including

maturity date, rate of interest, collateral,

par, or maturity value

   Current value  
  Shares in registered investment company funds:   

*Fidelity Investments

 

Fidelity Retirement Money Market Portfolio

   $ 12,082,113   

Pacific Investment Management Company

 

PIMCO Total Return Fund

     16,921,419   

DFA Investment Dimensions Group Inc.

 

DFA Emerging Markets Value Portfolio

     13,579,754   

Baron Funds

 

Baron Growth Fund

     12,179,448   

The Vanguard Group

 

Vanguard Mid-Cap Index Signal Fund

     7,986,221   

*Fidelity Investments

 

Spartan US Equity Index Fund

     7,523,707   

Dodge & Cox

 

Dodge & Cox Stock Fund

     6,252,469   

Goldman Sachs

 

Goldman Sachs Mid Cap Value Fund Institutional Class

     4,538,810   

JPMorgan Asset Management

 

JPMorgan Large Cap Growth Fund

     3,329,597   

Franklin Templeton Investments

 

Templeton Global Bond Fund

     2,579,081   

Royce & Associates, LLC

 

Royce Pennsylvania Mutual Investment Fund

     2,404,765   

Neuberger Berman

 

Neuberger Berman Real Estate Fund

     1,049,507   

*Fidelity Investments

 

Fidelity Contrafund

     16,261,292   

*Fidelity Investments

 

Fidelity Balanced Fund

     9,354,826   

*Fidelity Investments

 

Fidelity Diversified International Fund

     8,169,400   

*Fidelity Investments

 

Fidelity Freedom Income Fund

     610,941   

*Fidelity Investments

 

Fidelity Freedom 2000 Fund

     85,771   

*Fidelity Investments

 

Fidelity Freedom 2005 Fund

     37,525   

*Fidelity Investments

 

Fidelity Freedom 2010 Fund

     637,964   

*Fidelity Investments

 

Fidelity Freedom 2015 Fund

     3,030,475   

*Fidelity Investments

 

Fidelity Freedom 2020 Fund

     3,933,022   

*Fidelity Investments

 

Fidelity Freedom 2025 Fund

     4,135,094   

*Fidelity Investments

 

Fidelity Freedom 2030 Fund

     5,549,741   

*Fidelity Investments

 

Fidelity Freedom 2035 Fund

     3,237,520   

*Fidelity Investments

 

Fidelity Freedom 2040 Fund

     2,318,041   

*Fidelity Investments

 

Fidelity Freedom 2045 Fund

     1,722,710   

*Fidelity Investments

 

Fidelity Freedom 2050 Fund

     948,014   
  Common and collective trust:   

*Fidelity Investments

 

Fidelity Managed Income Portfolio

     6,244,346   

*FLIR Systems, Inc.

  Common stock:   
 

FLIR Systems, Inc. common stock

     20,690,000   

*Participants

 

Notes receivable from participants (4.25% to 9.25% maturing through 2021)

     2,324,820   
    

 

 

 
 

Total investments

   $ 179,718,393   
    

 

 

 

 

* Represents a party-in-interest transaction as of December 31, 2011

See accompanying report of independent registered public accounting firm.

 

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Schedule II

FLIR SYSTEMS, INC.

401(k) SAVINGS PLAN

Schedule H, Line 4a – Schedule of Delinquent Participant Contributions

Year ended December 31, 2011

 

Participant contributions transferred late to the Plan

   Total that constitute nonexempt
prohibited transactions
        

Check here if late participant loan repayments are included:     ¨

   Contributions
not corrected
     Contributions
corrected
outside VFCP
     Contributions
pending
correction
in VFCP
     Total fully
corrected  under
VFCP and
PTE 2002-51
 
   $ 481        —           —           —     

See accompanying report of independent registered public accounting firm.

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized.

 

  FLIR Systems, Inc. 401(k) Savings Plan
Date: July 13, 2012   FLIR Systems, Inc.
  (Plan Sponsor)
  By:  

    /s/ Anthony L. Trunzo

  Senior Vice President, Finance and Chief Financial Officer

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

To the Board of Directors of

FLIR Systems, Inc.:

We consent to the incorporation by reference in the registration statement No. 33-95248 on Form S-8 of FLIR Systems, Inc. of our report dated July 13, 2012, with respect to the statements of net assets available for benefits of the FLIR Systems, Inc. 401(k) Savings Plan as of December 31, 2011 and 2010, and the related statements of changes in net assets available for benefits for the years then ended, and the supplemental schedules of schedule H, line 4i – schedule of assets (held at end of year) as of December 31, 2011 and schedule H, line 4a – schedule of delinquent participant contributions for the year ended December 31, 2011, which report appears in the December 31, 2011 annual report on Form 11-K of the FLIR Systems, Inc. 401(k) Savings Plan.

/s/ KPMG LLP

Portland, Oregon

July 13, 2012