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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1993
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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Commission file number 0-9722
INTERGRAPH CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 63-0573222
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
Intergraph Corporation
Huntsville, Alabama 35894-0001
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(Address of principal executive (Zip Code)
offices)
Registrant's telephone number, including area code: (205) 730-2000
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, par value $0.10 per share
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(Title of Class)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days. Yes X No
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Indicate by check mark if disclosure of delinquent filers pursuant
to Item 405 of Regulation S-K is not contained herein, and will not be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form
10-K or any amendment to this Form 10-K. (X)
As of January 31, 1994, there were 45,389,118 shares of Intergraph
Corporation Common Stock $0.10 par value outstanding. The aggregate
market value of the voting stock held by non-affiliates of the registrant
was approximately $460,406,000 based on the closing sale price of such
stock as reported by NASDAQ on January 31, 1994, assuming that all shares
beneficially held by executive officers and members of the registrant's
Board of Directors are shares owned by "affiliates," a status which each
of the executive officers and directors individually disclaims.
DOCUMENTS INCORPORATED BY REFERENCE
Documents Form 10-K Reference
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Portions of the Annual Report to Shareholders
for the year ended December 31, 1993 Part II, Part IV
Portions of the Proxy Statement for the May 12,
1994 Annual Shareholders' Meeting Part III
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PART I
ITEM 1. BUSINESS
Intergraph Corporation was founded in 1969, and is organized as a
Delaware corporation. Unless the context of this discussion dictates
otherwise, references to the "Company" or "Intergraph" include Intergraph
Corporation and subsidiaries.
Intergraph's business is principally in one industry segment:
interactive computer graphics systems. With an emphasis on technical
disciplines, Intergraph systems combine graphics workstations, servers,
and peripheral hardware with operating system and application-specific
software programs authored by Intergraph and third party software
developers to perform such functions as design, drafting, mapping,
modeling, analysis, and documentation. These systems are developed,
manufactured, sold, and serviced by the Company.
Intergraph systems support the creation, analysis, display, output,
and maintenance of virtually every type of design, drawing, map, and
other graphic representation, while simultaneously providing capabilities
to manage a database of non-graphic descriptive information associated
with the graphics data. Systems hardware consists of:
* Workstations and servers based on reduced instruction set computing
(RISC) or Intel Corporation (Intel) microprocessors
* A variety of Intergraph and third-party peripheral devices
* Industry-standard networking
Software includes applications for computer-aided design/computer-
aided manufacturing/computer-aided engineering (CAD/CAM/CAE), mapping and
geographic information systems, electronic publishing, technical
information management, and database management.
INTERGRAPH SYSTEMS
Intergraph systems include hardware and application software
developed by the Company and others. These products can be configured to
address the needs of any size organization. The Company provides
solutions which are integrated -- workstations, servers, peripherals, and
software configured by the Company to work together and satisfy each
customer's requirements.
All Intergraph workstations and servers are currently based on the
Company's microprocessor with a UNIX operating system or Intel
microprocessors with the Windows/DOS or Windows NT operating system.
The Company has historically manufactured workstations and servers
based on its own microprocessor technology, and offered its software
applications on the UNIX operating system, with only limited availability
of its software applications on hardware platforms of other vendors. In
late 1992, the Company announced its decision to port its technical
software applications to Microsoft Corporation's new Windows NT operating
system for high-end computing, and to make Windows NT available on
Intergraph workstations. Microsoft's standard Windows system is widely
accepted in the personal computing (PC) market. The effect of this
decision is to expand the availability of the Company's workstations and
software applications to Windows-based computing environments not
previously addressed, including the availability of Intergraph software
applications that will operate on selected hardware platforms of other
manufacturers that use the Windows NT operating system. At the same
time, the Company continues to develop and maintain products in the UNIX
operating system environment, the foundation for its software
applications before Windows NT, thereby offering existing and potential
customers a choice of UNIX or Windows NT operating systems. In addition,
the Company believes Intel's architecture has an important role in the
technical computing market it serves and now offers a hardware platform
for all its software applications based on Intel microprocessors under
the Windows NT operating system.
1
Limited shipments of Windows NT-based applications software began in
the fourth quarter of 1993. Most of the Company's software applications
are expected to be available on Windows NT during 1994. The Company
began shipping new Intel-based workstations in third quarter 1993, and
expects that Intel-based systems will represent the majority of its 1994
workstation shipments. In addition, the Company has ceased design of its
own microprocessor and has entered into an agreement with Sun
Microsystems Computer Corporation (Sun) that, among other things,
provides for the Company's purchase from Sun beginning in the second half
of 1995 of a microprocessor to be co-developed by the Company and Sun.
The Company may choose to offer future products based on the Sun
microprocessor. See "Management's Discussion and Analysis of Financial
Condition and Results of Operations" for further discussion of the Sun
agreement.
The Company supports industry standards for operating systems,
windowing, graphics, peripherals, and communication networks, allowing
its systems to operate in computing environments with products from other
vendors who support the same industry standards.
Intergraph offers more than 1,200 interactive graphics application
programs, including more than 700 developed by third parties.
Systems currently sold by the Company are configured using a
combination of the following:
(1) Workstations manufactured by the Company that offer user-
selectable main memory capacity and performance levels. This
flexibility allows customers to match hardware capabilities with
their production requirements. All Intergraph-manufactured
workstations are based on its 32-bit RISC microprocessor or Intel
microprocessors. Intergraph workstations are general-purpose
computer systems that can run third-party application, data
management, and data processing software packages.
(2) RISC-based and Intel-based servers that function as plot,
file, compute, and database nodes. The servers off-load these
functions from standalone workstations and enable workstation users
to share data and system resources in a distributed network.
Intergraph's servers offer user-selectable configurations and
performance levels.
(3) Special-purpose peripherals, including scanners, scanner/plotters,
photoplotters, electrostatic and pen plotters, color and monochrome
hardcopy devices, magnetic and optical disk technology, a variety of
disk and tape drives, alphanumeric terminals, screen image cameras,
line printers, and other devices available from the Company, either
manufactured in-house or as original equipment from third parties.
(4) A broad range of UNIX application software and increasing
numbers of applications based on Windows/DOS and Windows NT. See
"Intergraph Applications Software" below.
(5) MicroStation core graphics software from Bentley Systems,
Inc., an Intergraph affiliate, for various operating systems and
hardware platforms.
(6) An open network architecture that ties Intergraph hardware and
software products together and provides access to other systems
and processes.
PRODUCT TRANSITION
The Company believes that offering a choice of UNIX and Windows NT
operating systems and Intergraph and Intel hardware platforms will expand
the market for its products. However, while the Company believes that
Windows NT will become the dominant operating system in the markets it
serves, other operating systems are available in the market, and several
competitors of the Company also use UNIX or are adopting the Windows NT
system for their product offerings. As in any product transition, the
Company is unable to predict the precise effects of the transition on its
revenues, margins, and profitability for 1994, but believes the
transition may continue to adversely affect orders and revenues through
the first half of 1994. See "Product Development" and "Competition"
below.
2
INTERGRAPH SYSTEMS SOFTWARE
At the systems software level, Intergraph develops software to
provide graphics and database management capabilities on Intergraph
systems, advanced compilers for Intergraph systems, and utilities to
enable interoperability with systems from other vendors.
The graphics software foundation for many Intergraph UNIX-based
software applications is MicroStation 32, a graphics software product
owned by Bentley Systems, Inc., an Intergraph affiliate. MicroStation 32
provides fundamental graphics element creation, maintenance, and display
functions. In addition to MicroStation 32 for Intergraph workstations,
other versions of MicroStation are available on many hardware platforms
from other vendors, including MicroStation PC for personal computers,
MicroStation Mac for the Apple Macintosh, MicroStation Sun for Sun
SPARCstations and MicroStation HP700 for the Hewlett-Packard HP700
workstation. A Japanese language version of MicroStation (release 4.0)
runs on the NEC personal computer. MicroStation is compatible with
Intergraph's original core graphics software, the Interactive Graphics
Design System, which runs on Digital Equipment Corporation (DEC) VAX-
based systems.
Intergraph supports relational database management systems for
attribute (non-graphic) data management on its own workstations and
servers, as well as on systems from other vendors. Currently supported
are Ingres, Oracle, Informix, DB2, Rdb, and SyBase. Intergraph's
Relational Interface System (RIS) is a core product that provides
database-independent access to data stored in supported databases.
To facilitate the use of Intergraph systems with those from other
vendors, the Company develops software for translating data into
Intergraph formats, inputting large volumes of text into graphics and
attribute files, and communicating with other computer systems.
Additionally, Intergraph provides interfaces to various models of
electrostatic and pen plotters (both online and offline), online
typesetters, units producing computer output microfilm, and other output
devices such as those used in the graphic arts industry.
INTERGRAPH APPLICATIONS SOFTWARE
Intergraph offers a broad suite of graphics and data management
applications software. Architecture/engineering/construction (AEC),
mapping and geographic information systems (GIS), and mechanical design,
engineering, and manufacturing (MDEM) applications have dominated the
product mix over the last three years, with no other single application
representing more than 10% of systems revenue.
The following is a brief description of the Company's major product
application areas. Each product organization is led by a senior
executive responsible for product development, marketing, training,
support, and documentation.
ARCHITECTURE/ENGINEERING/CONSTRUCTION. Intergraph's architectural,
facility management, and engineering product line
automates the project design and management process. With this
software, users can develop and model building concepts, produce
construction documents, and manage space and assets in a finished
facility. The system serves the needs of architecture/engineering
firms and corporate or governmental facility management offices.
Included are capabilities for producing three-dimensional models of
design concepts, architectural drawings, reports, engineering plans,
and construction drawings (for example, heating, ventilation, and air
conditioning; electrical; and plumbing). Packages are also offered
for space planning and facility layout.
Intergraph's civil engineering software includes capabilities for
coordinate geometry and for structural, site, water resources, bridge,
geotechnical and transportation engineering. Structural engineering
software is used to create two- and three-dimensional structural
models that serve as the basis for frame and finite element-based
structural design and analysis of steel and concrete structures. For
construction needs, the products support traditional drafting and
report requirements. The Company's highway, rail, site, and
hydraulic/hydrologic engineering products link traditional workflow
activities from data collection to plan and profile production, to
generation of construction drawings.
3
The Company's plant design software addresses the needs of
process and power plant design efforts. The Plant Design System (PDS)
product supports piping and instrumentation diagram generation,
electrical, structural, and other design aspects of a plant. Three-
dimensional modeling capabilities are provided. The system performs
interference-checking and provides reports, materials lists, and
drawings. A supporting product provides "walk-throughs" of three-
dimensional plant models. The electrical engineering products are
used for engineering and analysis of power systems, panel layout,
raceway design, and wiring diagram production.
MAPPING AND GEOGRAPHIC INFORMATION SYSTEMS. Intergraph offers a
range of GIS and mapping solutions to assist businesses, governments,
and academic institutions in solving geography-based problems.
Intergraph's GIS/mapping software tools address the entire life cycle
of GIS/mapping projects from project and data management, through data
collection and integration, spatial query and analysis, to output and
map production.
Intergraph's GIS/mapping solutions help companies address
workflows in several major industries. These products support
solutions for all levels of government including infrastructure
management, planning, growth management, economic development, land
information management, public safety and security, public works,
redistricting, tactical and strategic defense applications (such as
land-based command and control operations), and hydrographic systems.
Transportation industry applications range from decision support
activities such as policy, planning, and programming to the creation
of operations systems that support such day-to-day tasks in
transportation agencies. Utility companies utilize Intergraph's
GIS/mapping products to develop cost-effective, efficient ways to
automate management and analysis applications such as market analyses,
environmental impact studies for siting, permitting, contaminant
studies, and risk evaluation, long-range planning and forecasting,
corridor evaluation and selection, and right-of-way analysis.
Environmental and natural resource management applications include
monitoring, evaluating and managing, conservation and remediation of
the environment. Energy exploration and production products assist
geoscientists in every phase of geological analysis related to energy
exploration and production and mineral extraction.
Intergraph also provides solutions for end-to-end digital map and
chart publishing, digital image processing, orthophoto production, and
digital photogrammetry.
MECHANICAL DESIGN, ENGINEERING AND MANUFACTURING. For the
mechanical design and manufacturing market, Intergraph offers software
to automate the product development cycle from design through
analysis, manufacturing, and documentation. Customers use the system
to design mechanical parts and assemblies, defining complex parts with
specialized sculptured surface and solid modeling software.
Detailing, dimensioning, and drafting capabilities are included for
the production of engineering drawings.
Engineering software evaluates product designs for functional and
structural integrity, predicting behavior under service or test
conditions. Finite element modeling and analysis software evaluates
designs by simulating stresses encountered in end use. Other products
assist in optimizing material usage and cutting cycles for
metalworking and fabrication. In addition, a data management system
organizes shared product databases for coordination and management of
product cycle phases.
PRODUCT DEVELOPMENT
The Company believes a strong commitment to ongoing product
development is critical to success in the interactive computer graphics
industry. Significant resources are devoted to development of Intergraph
products, and the Company believes its product offerings are responsive
to market and competitive demands.
Product development expenditures include all costs related to
designing new or improving existing equipment and software. During the
year ended December 31, 1993, the Company spent $160.3 million (15.3% of
revenues) for product development activities compared to $150.2 million
(12.8% of revenues) in 1992, and $134.4 million (11.3% of revenues) in
1991.
4
The interactive computer graphics industry is characterized by
intense price and performance competition and short product cycles,
which necessitate new product development on an ongoing basis. The
future operating results of the Company, and of others in the industry,
depend in large part on the ability to rapidly and continuously develop
and deliver new hardware and software products that are competitively
priced and offer enhanced performance.
MANUFACTURING AND SOURCES OF SUPPLY
The Company's primary manufacturing activities consist of the
fabrication and testing of Company-designed electronic circuits and the
assembly and testing of components and subassemblies manufactured by the
Company and others.
In January, 1994 the Company announced its decision to close its
manufacturing facility located in Nijmegen, The Netherlands. The
decision was made to take advantage of lower costs of production and
distribution in the U.S., and to utilize existing capacity in the U.S.
manufacturing operation. The facility will be closed in phases over the
course of 1994, with all manufacturing and distribution activity
transferred to the Company's U.S. manufacturing facility. European sales
and support activity will continue to be provided by the Company's
subsidiary operations located throughout Europe and by its European
headquarters located in The Netherlands. The Company plans to sell or
lease the Nijmegen facility.
As described under "Intergraph Systems" above, the Company no longer
designs its own microprocessor. The Company has agreements in place
currently with Intel, and beginning in the second half of 1995, with Sun
for provision of its microprocessor needs. The Company believes it has
good relationships with Intel and Sun and is unaware of any reason that
Intel or Sun might encounter difficulties in meeting the Company's
microprocessor needs. An inability to obtain a sufficient supply of
microprocessors from Intel and Sun would adversely affect the Company's
results of operations. The Company is not dependent on any other sole
source supplier of purchased parts, components, or peripherals used in
the systems manufactured by the Company.
The Company is not required to carry extraordinary amounts of
inventory to meet customer demands or to ensure allotment of parts from
its suppliers.
SALES AND SUPPORT
SALES. The Company's systems are sold by its direct sales force
through sales offices in 52 countries worldwide. The efforts of the
direct sales force are augmented by dealers, value-added-resellers,
distributors, and system integrators. In general, the direct sales force
is compensated on a combined base salary and commission basis. Sales
quotas are established along with certain incentives for exceeding those
quotas. Additional specific incentive programs may be established
periodically.
The Company's sales organization is organized along industry lines
to focus on key industries (transportation, utilities, local government,
defense, building, vehicle design, electronics, manufacturing, etc.).
The Company believes this structure enables it to better meet the
specialized needs of these industries.
International markets, particularly Europe, continue to increase in
importance to the industry and to the Company. The percentage of total
Company revenues from customers outside the United States was 51% for the
last two fiscal years. European customers represented 35% of total
Company revenues in 1993 and 38% in 1992.
There are currently wholly-owned sales and support subsidiaries of
the Company located in every major European country. European
subsidiaries are supported by service and technical assistance operations
located in The Netherlands. Outside of Europe, Intergraph systems are
sold and supported through a combination of subsidiaries and
distributorships. At December 31, 1993, the Company had approximately
1,900 employees in Europe and 900 employees in other international
locations.
5
The Company's operations are subject to and may be adversely
affected by a variety of risks inherent in doing business
internationally, such as government policies or restrictions, currency
exchange fluctuations, and other factors. See Management's Discussion
and Analysis of Financial Condition and Results of Operations and Notes 1
and 9 of Notes to Consolidated Financial Statements contained in the
Company's 1993 Annual Report, portions of which are incorporated herein
by reference, for further discussion of the Company's international
operations.
CUSTOMER SUPPORT. The Company believes that a high level of
customer support is important to the sale of interactive graphics
systems. Customer support includes pre-installation guidance, education
services, customer training, onsite installation, hardware preventive
maintenance, repair service, software help desk and technical support
services in addition to consultative professional services. The Company
employs engineers and technical specialists to provide customer
assistance, maintenance, and training. Maintenance and repair of systems
are covered by standard warranties and by maintenance agreements to which
substantially all users subscribe.
U.S. GOVERNMENT BUSINESS
Revenues from the United States government were $165.7 million in
1993 (16% of total revenue), $186.5 million in 1992 (16% of total
revenue), and $172.3 million in 1991 (14% of total revenue).
Approximately 40% of total federal government revenues are earned under
long-term contracts. The Company believes it has a good relationship
with the federal government. While it is fully anticipated that these
contracts will remain in effect through their expiration, the contracts
are subject to termination at the election of the government (with
damages paid to the Company). Any loss of a significant government
contract through termination or expiration without renewal or replacement
would have an adverse impact on the results of operations of the Company.
No other customer exceeds 10% of the total revenue of the Company.
BACKLOG
An order is entered into backlog only when the Company receives a
firm purchase commitment from a customer. The Company's backlog of
unfilled systems orders at December 31, 1993, was $232 million. At
December 31, 1992, backlog was $275 million. Substantially all of the
December 1993 backlog of orders is expected to be shipped during 1994.
The Company does not consider its business to be seasonal, though
typically fourth quarter orders and revenues exceed those of other
quarters.
The Company does not ordinarily provide return of merchandise or
extended payment terms to its customers.
COMPETITION
The industry in which the Company competes continues to be
characterized by price and performance competition. To compete
successfully, the Company and others in the industry must continuously
develop products with enhanced performance that can be offered at a
competitive price. The Company, along with other companies in the
industry, engages in the practice of price discounting to meet
competitive industry conditions. Other important competitive factors
include quality, reliability, and customer service, support, and
training. Management of the Company believes that competition will
remain intense.
Competition in the interactive computer graphics industry varies
among the different application areas. The Company considers its
principal competitors in the interactive computer graphics market to be
IBM, Computervision Corp., Hewlett-Packard Corp., DEC, Sun, Unigraphics
(a division of Electronic Data Systems, Inc.), Silicon Graphics, Inc.,
and Mentor Graphics, Inc. In the personal computer-based graphics
market, Intergraph competes with the products of Autodesk, Inc. and
Computervision. Several companies with greater financial resources than
the Company, including IBM, DEC, and Hewlett-Packard, are increasing
their activities in the industry.
6
The Company provides solutions which are integrated -- workstations,
servers, peripherals, and software configured by the Company to work
together and satisfy each customer's requirements. By delivering such
integration, the Company believes it has an advantage over other vendors
who provide only hardware or software, leaving system integration to the
customer. In addition, the Company believes that its experience and
extensive worldwide customer service and support infrastructure represent
a competitive advantage.
ENVIRONMENTAL AFFAIRS
The Company's manufacturing facilities are subject to numerous laws
and regulations designed to protect the environment, particularly from
plant wastes and emissions. In the opinion of the Company, compliance
with these laws and regulations has not had, and should not have, a
material effect on the capital expenditures, earnings, or competitive
position of the Company.
LICENSES, COPYRIGHTS, TRADEMARKS, AND PATENTS
The Company develops its own graphics, data management, and
applications software as part of its continuing product development
activities. The Company has standard license agreements with UNIX
Systems Laboratories for use and distribution of the UNIX operating
system, and with Microsoft Corporation for use and distribution of the
Windows NT operating system. The license agreements are perpetual and
allow the Company to sublicense the operating systems software upon
payment of required sublicensing fees.
In addition, the Company has an exclusive worldwide license
agreement with Bentley Systems, Inc. (a 50%-owned affiliate of the
Company) to market, use, distribute, and sublicense MicroStation
software. See Item 3. Legal Proceedings for further details.
The Company has an extensive program for the licensing of third-
party application and general utility software for use on systems and
workstations.
The Company owns and maintains a number of registered patents and
registered and unregistered copyrights, trademarks, and servicemarks.
The patents and copyrights held by the Company are the principal means by
which the Company preserves and protects the intellectual property rights
embodied in the Company's hardware and software products. Similarly,
trademark rights held by the Company are used to preserve and protect the
goodwill represented by the Company's registered and unregistered
trademarks, such as the federally registered trademark "Intergraph".
As industry standards proliferate, there is a possibility that the
patents of others may become a significant factor in the Company's
business. Personal computer technology, for example, is widely
available, and many companies, including Intergraph, are attempting to
develop patent positions concerning technological improvements related to
PCs and workstations.
At present, it does not appear that Intergraph will be prevented
from using the technology necessary to compete successfully since
patented technology is typically available in the industry under royalty-
bearing licenses or patent cross-licenses, or the technology can be
purchased on the open market. Any increase in royalty payments or
purchase costs would increase the Company's costs of manufacture,
however, and it is possible, though not anticipated, that some key
improvement necessary to compete successfully in some markets served by
the Company may not be available.
The Company is actively engaged in a program to protect by patents
the technology it is developing.
The Company believes its success depends less on its ability to
obtain and defend copyrights, trademarks, and patents than on its ability
to offer higher-performance products for specific solutions at
competitive prices.
7
EMPLOYEES
At December 31, 1993, the Company had approximately 9,500 employees.
Of these, approximately 2,800 were employed outside the United States.
The Company's employees are not subject to collective bargaining
agreements, and there have been no work stoppages due to labor
difficulties. Management of the Company believes it has a good
relationship with its employees. Total employment is approximately 800
less than at December 31, 1992. The reduction was achieved both through
direct action by the Company and through normal attrition. See
Management's Discussion and Analysis of Financial Condition and Results
of Operations for further details.
ITEM 2. PROPERTIES
The Company's corporate offices and primary manufacturing facility
are located in Huntsville, Alabama. Manufacturing facilities located in
Nijmegen, The Netherlands will be closed in 1994, as explained under
"Manufacturing and Sources of Supply" above. Sales and support
facilities are maintained throughout the world.
The Company owns over 2,000,000 square feet of space in Huntsville
that is utilized for manufacturing, product development, sales and
administration. The Huntsville facilities also include over 500 acres of
unoccupied land that can be used for future expansion. The Company
maintains subsidiary company facilities and sales and support locations
in major U.S. cities outside of Huntsville, primarily through operating
leases.
Outside the U.S., the Company owns approximately 500,000 square feet
of space, primarily its Nijmegen manufacturing facility and European
headquarters facility. Sales and support facilities are leased in most
major international locations.
The Company considers its facilities to be adequate for the
immediate future.
ITEM 3. LEGAL PROCEEDINGS
The Company is a 50% owner of Bentley Systems, Inc. (BSI). BSI
granted Intergraph an exclusive worldwide license to distribute
MicroStation, which is a basic software package utilized by many of
Intergraph's software applications. BSI notified Intergraph on February
3, 1994, that in its opinion certain events have occurred under the terms
of the license agreement which make the license nonexclusive, and as a
result, BSI may compete with Intergraph in the distribution of
MicroStation and in the development and distribution of additional
software products. Intergraph disputes that the license agreement has
changed, and pursuant to the license agreement, Intergraph has submitted
the dispute to arbitration under the rules of the American Arbitration
Association. Related lawsuits were filed in February 1994, among BSI,
Intergraph, and the other 50% shareholders of BSI in the Court of Common
Pleas, Chester County, Pennsylvania, the Circuit Court of Madison County,
Alabama and the United States District Court for the Eastern District of
Pennsylvania. The principal relief sought is a declaration of the rights
of the parties under the license and related agreements. The Company has
entered into negotiations which could result in settlement of this
matter. See the discussion under Results of Operations set forth in
Management's Discussion and Analysis of Financial Condition and Results
of Operations contained in the Company's 1993 Annual Report.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SHAREHOLDERS
None.
8
EXECUTIVE OFFICERS OF THE COMPANY
Certain information with respect to the executive officers of the
Company is set forth below. Officers serve at the discretion of the
Board of Directors.
Officer
Name Age Position Since
- ---------------------- --- -------------------------------------------------------------- -------
James W. Meadlock 60 Chairman of the Board and Chief Executive Officer 1969
Larry J. Laster 42 Executive Vice President, Chief Financial Officer,and Director 1986
Nancy B. Meadlock 55 Executive Vice President and Director 1969
Robert E. Thurber 53 Executive Vice President and Director 1972
Lawrence F. Ayers, Jr. 61 Executive Vice President 1987
Neil E. Keith 48 Executive Vice President 1985
Stephen J. Phillips 52 Executive Vice President 1987
Maurice G. Romine 52 Executive Vice President 1983
William E. Salter 52 Executive Vice President 1984
Tommy D. Steele 53 Executive Vice President 1992
Herman E. Thomason 68 Executive Vice President 1991
John M. Thorington, Jr. 50 Executive Vice President 1980
Damian Walters 43 Executive Vice President 1991
Allan B. Wilson 45 Executive Vice President 1982
Manfred Wittler 53 Executive Vice President 1989
James W. Meadlock is a founder of the Company, has served as
Chairman of the Board of Directors since the Company's inception in 1969,
and is Chief Executive Officer. Mr. Meadlock and Nancy B. Meadlock are
husband and wife.
Larry J. Laster joined the Company in June 1981. Since that time,
he has held several managerial positions in the Company's Finance
Department and Federal Systems Division. He was elected Vice President
in December 1986, named Chief Financial Officer in February 1987, elected
to the Board of Directors in April 1987, and is currently Executive Vice
President. Mr. Laster is a certified public accountant.
Nancy B. Meadlock is a founder of the Company and has been a
Director since 1969, excluding the period from February 1970 to February
1972. Mrs. Meadlock served as Secretary for ten years, was elected Vice
President in 1979, and is currently Executive Vice President and
Director. She holds a master's degree in business administration. Mrs.
Meadlock and James W. Meadlock are wife and husband.
Robert E. Thurber is a founder of the Company and has been a
Director since 1972. He is responsible for the development of
applications software to support AEC, mapping/GIS and utilities
disciplines. In June 1977, Mr. Thurber was elected Vice President and is
currently Executive Vice President. Mr. Thurber holds a master's degree
in engineering.
Lawrence F. Ayers, Jr., joined the Company in September 1987 after
32 years in federal government mapping where he became the Civilian
Director of the Defense Mapping Agency. He served as Vice President for
International Federal Marketing until February 1993 and is currently
Executive Vice President with responsibility for commercial mapping and
utility products. Mr. Ayers holds a bachelors of science degree in civil
engineering and a master's degree in public administration.
Neil E. Keith joined the Company in December 1981. He was elected
Vice President in September 1985 and is currently Executive Vice
President. He has extensive experience in manufacturing management and
is responsible for the Company's manufacturing operations worldwide.
9
Stephen J. Phillips joined the Company as Vice President and General
Counsel in November 1987 when Intergraph purchased the Advanced Processor
Division of Fairchild Semiconductor, where Mr. Phillips was General
Patent Counsel. He was elected Executive Vice President in August 1992.
Mr. Phillips holds a master's degree in electrical engineering and a
juris doctor in law.
Maurice G. Romine joined the Company in October 1976 in a Federal
Systems support role and has since held key positions in the Company
responsible for sales, marketing, development and support of the
Company's computer graphics systems. He was responsible for organizing
and managing the Company's European operations starting in January 1979.
He was elected Vice President of European Operations in 1983 where he
served until July 1986, when he returned to the U.S. as Vice President of
the Mapping and Energy software product center. He was elected Executive
Vice President in January 1987. Mr. Romine reassumed responsibility for
the European operations in January 1987 until October 1989. In November
1989 Mr. Romine was appointed as Executive Vice President of Corporate
Marketing and later also given responsibility for the MicroStation
software product center. Since October 1992, he has served as Executive
Vice President of Corporate Operations.
William E. Salter joined the Company in April 1973. Since that
time, he has held several managerial positions in the Company's Federal
Systems Division and has served as Manager of Marketing Communications.
Dr. Salter was elected Vice President in August 1984 and is currently
Executive Vice President with responsibility for the Company's Federal
Systems Division. He holds a doctorate in electrical engineering.
Tommy D. Steele joined the Company in June 1992 as Executive Vice
President with responsibility for software systems, mechanical design and
technical information management applications, and professional services.
Mr. Steele came to Intergraph from IBM Corporation, where he was employed
28 1/2 years. At IBM, he worked on Apollo/Skylab/Saturn programs, the
space shuttle, and a number of Department of Defense programs. In his
last four years with IBM, he managed PC Operating Systems (OS/2, DOS, and
AIX) for IBM.
Herman E. Thomason joined the Company in 1985 and was involved in
the development of the Company's federal government business. In 1991,
he was elected Executive Vice President with responsibility for the
Company's scanning and imaging hardware and software, as well as for the
graphic arts and publishing products. He holds a doctorate in electrical
engineering.
John M. Thorington, Jr., joined the Company in August 1977 and was
responsible for the design, development, and manufacture of many of the
Company's hardware products. In May 1980, Dr. Thorington was elected
Vice President, Graphics Engineering, and is currently Executive Vice
President. He holds a doctorate in electrical engineering.
Damian Walters joined the Company in 1984 as the Managing Director
of Intergraph Australia, a subsidiary of the Company. In 1986, he
established the Intergraph office in New Zealand and in 1987 established
the Asia Pacific regional headquarters operation in Hong Kong. In 1991,
Mr. Walters was elected Vice President. In 1994, he was elected
Executive Vice President. Mr. Walters is currently responsible for the
Company's Asia Pacific region.
Allan B. Wilson joined the Company in 1980 and was responsible for
the development of international operations outside of Europe and North
America. He was elected Vice President in May 1982 and Executive Vice
President in November 1982. Mr. Wilson is responsible for corporate
marketing (including marketing communications) as well as office
automation standards and support. He holds a master's degree in
electrical engineering.
Manfred Wittler joined the Company in 1989 as Vice President. In
1991, he was elected Executive Vice President and is currently
responsible for sales and support for Europe and the Americas. From 1983
through 1989, Mr. Wittler served as Division Vice President for Data
General Corporation in Europe.
10
PART II
ITEM 5. MARKET FOR THE COMPANY'S COMMON STOCK AND RELATED
SHAREHOLDER MATTERS
The information appearing under "Dividend Policy" and "Price Range
of Common Stock" on page 27 of the Intergraph Corporation 1993 Annual
Report to Shareholders is incorporated by reference in this Form 10-K
Annual Report.
ITEM 6. SELECTED FINANCIAL DATA
Selected financial data for the five years ended December 31, 1993,
appearing under "Five-Year Financial Summary" on the inside front cover
page of the Intergraph Corporation 1993 Annual Report to Shareholders are
incorporated by reference in this Form 10-K Annual Report.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Management's discussion and analysis of financial condition and
results of operations appearing on pages 8 to 12 of the Intergraph
Corporation 1993 Annual Report to Shareholders is incorporated by
reference in this Form 10-K Annual Report.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The consolidated financial statements appearing on pages 13 to 26 of
the Intergraph Corporation 1993 Annual Report to Shareholders are
incorporated by reference in this Form 10-K Annual Report.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE
None.
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE COMPANY
The information appearing under "Election of Directors" and "Board
Committees and Attendance" on pages 4 to 5 of the Intergraph Corporation
Proxy Statement relative to the Annual Meeting of Shareholders to be held
May 12, 1994, is incorporated by reference in this Form 10-K Annual
Report. Directors are elected for terms of one year at the annual
meeting of the Company's shareholders.
Information relating to the executive officers of the Company
appearing under "Executive Officers of the Company" on pages 9 to 10 in
this Form 10-K Annual Report is incorporated herein by reference.
11
ITEM 11. EXECUTIVE COMPENSATION
The information appearing under "Executive Compensation" on pages 5
to 12 of the Intergraph Corporation Proxy Statement relative to the
Annual Meeting of Shareholders to be held May 12, 1994, is incorporated
by reference in this Form 10-K Annual Report.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The information appearing under "Common Stock Outstanding and
Principal Shareholders" on pages 2 to 3 of the Intergraph Corporation
Proxy Statement relative to the Annual Meeting of Shareholders to be held
May 12, 1994, is incorporated by reference in this Form 10-K Annual
Report.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
The information appearing under "Certain Relationships and Related
Transactions" on page 5 of the Intergraph Corporation Proxy Statement
relative to the Annual Meeting of Shareholders to be held May 12, 1994,
is incorporated by reference in this Form 10-K Annual Report.
12
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K
Page in
Annual
Report *
--------
(a) 1) The following consolidated financial statements of Intergraph
Corporation and subsidiaries and the report of independent
auditors thereon are incorporated by reference from the
Intergraph Corporation 1993 Annual Report to Shareholders:
Consolidated Balance Sheets at December 31, 1993 and 1992 13
Consolidated Statements of Income for the three years ended
December 31, 1993 14
Consolidated Statements of Cash Flows for the three years
ended December 31, 1993 15
Consolidated Statements of Shareholders' Equity for the
three years ended December 31, 1993 16
Notes to Consolidated Financial Statements 17 - 26
Report of Independent Auditors 27
Page in
Form 10-K
---------
2) Financial Statement Schedules:
Schedule II - Amounts Receivable from Related Parties
and Underwriters, Promoters, and Employees Other
than Related Parties for the three years ended
December 31, 1993 17
Schedule V - Property, Plant, and Equipment for the
three years ended December 31, 1993 18
Schedule VI - Accumulated Depreciation of Property,
Plant, and Equipment for the three years ended
December 31, 1993 19
Schedule VIII - Valuation and Qualifying Accounts and
Reserves for the three years ended December 31, 1993 20
Schedule IX - Short-Term Borrowings for the three years
ended December 31, 1993 21
Schedule X - Supplementary Income Statement Information
for the three years ended December 31, 1993 22
All other schedules are omitted because they are not applicable or
the required information is shown in the financial statements or notes
thereto.
Financial statements of 20%- to 50%-owned companies have been
omitted because the registrant's proportionate share of income before
income taxes and total assets of the companies is less than 20% of the
respective consolidated amounts, and the investments in and advances to
the companies are less than 20% of consolidated total assets.
* Incorporated by reference from the indicated pages of the 1993
Annual Report to Shareholders.
13
3) Exhibits
Page in
Number Description Form 10-K
------ ----------- ---------
3(a) Certificate of Incorporation, Bylaws, and Certificate
of Merger. (1)
3(b) Amendment to Certificate of Incorporation. (2)
3(c) Restatement of Bylaws. (3)
4 Shareholder Rights Plan, dated August 25, 1993. (4)
10(a) 1990 Intergraph Corporation Employee Stock Option
Plan. *(5)
10(b) Intergraph Corporation 1992 Stock Option Plan. *(6)
10(c) Employment contracts of Manfred Wittler, dated
November 1, 1989 (7) and April 18, 1991. *
10(d) Loan program for executive officers of the
Company. *(7)
10(e) Employment contract of Howard G. Sachs, dated
February 8, 1993. *
10(f) Termination agreement with Howard G. Sachs, dated
August 9, 1993. *
10(g) Consulting contract of Keith H. Schonrock, Jr.,
dated January 17, 1990. *
10(h) Agreement between Intergraph Corporation and
Green Mountain, Inc., dated February 23, 1994. *
11 Computation of Earnings (Loss) Per Share 23
13 Portions of the Intergraph Corporation 1993 Annual
Report to Shareholders incorporated by reference
in this Form 10-K Annual Report
21 Subsidiaries of the Company 24
23 Consent of Independent Auditors 25
- --------------------
(1) Incorporated by reference to exhibits filed with the
Company's Quarterly Report on Form 10-Q for the quarter ended
June 30, 1984, under the Securities Exchange Act of 1934, File
No. 0-9722.
(2) Incorporated by reference to exhibits filed with the
Company's Quarterly Report on Form 10-Q for the quarter ended
March 31, 1987, under the Securities Exchange Act of 1934, File
No. 0-9722.
(3) Incorporated by reference to exhibits filed with the
Company's Quarterly Report on Form 10-Q for the quarter ended
June 30, 1993, under the Securities Exchange Act of 1934, File
No. 0-9722.
(4) Incorporated by reference to exhibits filed with the
Company's Current Report on Form 8-K dated August 25, 1993,
under the Securities Exchange Act of 1934, File No. 0-9722.
14
(5) Incorporated by reference to exhibits filed with the
Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 1989, under the Securities Exchange Act of 1934,
File No. 0-9722.
(6) Incorporated by reference to exhibits filed with the
Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 1991, under the Securities Exchange Act of 1934,
File No. 0-9722.
(7) Incorporated by reference to exhibits filed with the
Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 1992, under the Securities Exchange Act of 1934,
File No. 0-9722.
* Denotes management contract or compensatory plan, contract
or arrangement required to be filed as an Exhibit to this Form
10-K.
- --------------------
(b) No reports on Form 8-K were filed during the fourth quarter of the
fiscal year ended December 31, 1993.
(c) Exhibits - the response to this portion of Item 14 is submitted as a
separate section of this report.
(d) Financial statement schedules - the response to this portion of Item
14 is submitted as a separate section of this report.
15
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.
INTERGRAPH CORPORATION
By Larry J. Laster Date: March 18, 1994
--------------------------
Larry J. Laster
Executive Vice President, Chief
Financial Officer and Director
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of
the registrant and in the capacities and on the dates indicated.
Date
----
James W. Meadlock
- ---------------------- Chief Executive Officer and March 18, 1994
James W. Meadlock Chairman of the Board
(Principal Executive Officer)
Larry J. Laster
- ---------------------- Executive Vice President, Chief March 18, 1994
Larry J. Laster Financial Officer and Director
(Principal Financial Officer)
Nancy B. Meadlock
- ---------------------- Executive Vice President March 18, 1994
Nancy B. Meadlock and Director
Robert E. Thurber
- ---------------------- Executive Vice President March 18, 1994
Robert E. Thurber and Director
Roland E. Brown
- ---------------------- Director March 18, 1994
Roland E. Brown
Keith H. Schonrock, Jr.
- ---------------------- Director March 18, 1994
Keith H. Schonrock, Jr.
James F. Taylor, Jr.
- ---------------------- Director March 18, 1994
James F. Taylor, Jr.
John W. Wilhoite
- ---------------------- Vice President and Controller March 18, 1994
John W. Wilhoite (Principal Accounting Officer)
16
INTERGRAPH CORPORATION AND SUBSIDIARIES
SCHEDULE II ---- AMOUNTS RECEIVABLE FROM RELATED PARTIES AND
UNDERWRITERS, PROMOTERS, AND EMPLOYEES OTHER THAN RELATED PARTIES
Column A Column B Column C Column D Column E
-------------------- ---------- ---------- ------------------------ --------------------
Balance at end
Deductions of period
Balance at ------------------------ --------------------
Year ended beginning Amounts Amounts Not
December 31, Name of debtor of period Additions collected written off Current current
- ------------ --------------------- ---------- ---------- ---------- ----------- ---------- -------
1993 James W. Meadlock (1) --- $2,502,000 --- --- $2,502,000 ---
========== ========== ========== =========== ========== =======
1992 James W. Meadlock (2) --- $1,500,000 $1,500,000 --- --- ---
========== ========== ========== =========== ========== =======
1991 Lewis S. Epstein (3) $475,000 --- $ 475,000 --- --- ---
========== ========== ========== =========== ========== =======
(1) Amount represents an unsecured promissory note receivable from
Mr. Meadlock, who is Chief Executive Officer of the Company. Interest
is charged at the prime rate. The loan is due in full by the earlier
to occur of the date of sale of any common stock of the Company by Mr.
Meadlock or May 20, 1994. This loan was executed under the provisions
of the Executive Officer Loan Program.
(2) Amount represented an unsecured promissory note receivable from
Mr. Meadlock. The note was paid in full in 1992. Interest was
charged at a rate of prime plus 2%.
(3) Amount represented a non-interest bearing note receivable from
Mr. Epstein, who was a Vice President of the Company. The note was a
housing bridge loan secured by a mortgage on real estate. The note
was paid in full in 1991.
17
INTERGRAPH CORPORATION AND SUBSIDIARIES
SCHEDULE V ---- PROPERTY, PLANT AND EQUIPMENT
(In Thousands)
Column A Column B Column C Column D Column E Column F
--------------------------------- ---------- --------------- ----------- ----------- -------------
For the year Balance at Balance at
ended beginning Additions Other end
December 31, Classification of period at cost (1) (2) Retirements changes (3) of period (4)
- ------------ --------------------------------- ---------- --------------- ----------- ----------- -------------
1993 Land and improvements $ 14,937 $ 70 $( 181) $ (233) $ 14,593
Buildings and improvements 143,477 6,249 ( 4,075) (2,619) 143,032
Equipment, furniture and fixtures 312,532 59,909 (47,371) (8,819) 316,251
---------- --------------- ----------- ----------- -------------
Totals $470,946 $66,228 $(51,627) $(11,671) $473,876
========== =============== =========== =========== =============
1992 Land and improvements $ 14,932 $ 226 --- $( 221) $ 14,937
Buildings and improvements 137,165 12,836 $( 1,465) ( 5,059) 143,477
Equipment, furniture and fixtures 295,248 70,310 (38,627) (14,399) 312,532
--------- --------------- ----------- ----------- -------------
Totals $447,345 $83,372 $(40,092) $(19,679) $470,946
========= =============== =========== =========== =============
1991 Land and improvements $ 14,132 $ 787 --- $ 13 $ 14,932
Buildings and improvements 112,049 25,193 $( 103) 26 137,165
Equipment, furniture and fixtures 258,668 72,124 (34,603) ( 941) 295,248
--------- --------------- ----------- ----------- -------------
Totals $384,849 $ 98,104 $(34,706) $( 902) $447,345
========= =============== =========== =========== =============
(1) Additions to equipment, furniture and fixtures in each year
consist primarily of computer hardware manufactured by the Company and
used in product development.
(2) Non-cash additions consist of additions to a building at a cost
of $7,246 through a long-term debt transaction in 1991.
(3) Other changes consist primarily of changes in the reported dollar
amounts of fixed assets held by international subsidiaries as the
result of changes in currency translation rates.
(4) As a part of changes in the Company's product, sales and
manufacturing strategies, the Company will eliminate certain
operations in phases over the course of 1994. Included in property,
plant and equipment is $13.3 million in net book value of assets
related to these operations, consisting primarily of $10.6 million in
net book value of land and buildings comprising the Company's
Netherlands manufacturing facility. The net book value of that
facility approximates market value. The Company will sell or lease
the facility.
Certain reclassifications have been made to the previously reported
1991 and 1992 balances to provide comparability with the current year
presentation.
18
INTERGRAPH CORPORATION AND SUBSIDIARIES
SCHEDULE VI ---- ACCUMULATED DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT
(In Thousands)
Column A Column B Column C Column D Column E Column F
--------------------------------- ---------- ------------ ----------- ----------- ------------
Additions
For the year Balance at charged to Balance at
ended beginning costs and Other end
December 31, Description of period expenses (1) Retirements changes (2) of period (3)
- ------------ ---------------------------------- ---------- ------------ ----------- ----------- -------------
1993 Land and improvements $ 1,852 $ 154 --- --- $ 2,006
Buildings and improvements 29,525 6,619 $( 1,938) $ 720 34,926
Equipment, furniture and fixtures 192,562 58,643 (31,050) ( 7,642) 212,513
--------- ------------ ----------- ------------ -------------
Totals $223,939 $65,416 $(32,988) $( 6,922) $249,445
========= ============ =========== ============ =============
1992 Land and improvements $ 1,588 $ 264 --- --- $ 1,852
Buildings and improvements 25,364 6,189 $( 379) $( 1,649) 29,525
Equipment, furniture and fixtures 171,299 59,202 (29,196) ( 8,743) 192,562
--------- ------------ ----------- ------------ -------------
Totals $198,251 $65,655 $(29,575) $(10,392) $223,939
========= ============ =========== ============ =============
1991 Land and improvements $ 1,285 $ 303 --- --- $ 1,588
Buildings and improvements 20,670 4,674 $( 66) $ 86 25,364
Equipment, furniture and fixtures 138,163 53,943 (19,794) ( 1,013) 171,299
--------- ------------ ----------- ------------ -------------
Totals $160,118 $58,920 $(19,860) $( 927) $198,251
========= ============ =========== ============ =============
(1) Depreciation is provided using the straight-line method over the
estimated useful lives of the assets. Asset lives range from three to
thirty years.
(2) Other changes consist primarily of changes in the reported dollar
amounts of accumulated depreciation on fixed assets held by
international subsidiaries as the result of changes in currency
translation rates.
(3) See Note 4 in Schedule V regarding operations to be eliminated.
Certain reclassifications have been made to the previously reported
1991 and 1992 balances to provide comparability with the current year
presentation.
19
INTERGRAPH CORPORATION AND SUBSIDIARIES
SCHEDULE VIII ---- VALUATION AND QUALIFYING ACCOUNTS AND RESERVES
Column A Column B Column C Column D Column E
- ----------------------------------- ----------- --------- ------------- -------------
Additions
Balance at charged to
beginning costs and Balance at
Description of period expenses Deductions end of period
- ----------------------------------- ----------- --------- ------------- -------------
Allowance for doubtful accounts
deducted from accounts receivable
in the balance sheet 1993 $18,969,000 6,201,000 4,379,000 (1) $20,791,000
1992 $18,720,000 4,457,000 4,208,000 (1) $18,969,000
1991 $16,040,000 5,829,000 3,149,000 (1) $18,720,000
Allowance for obsolete inventory
deducted from inventories
in the balance sheet 1993 $24,607,000 41,630,000 41,677,000 (2) $24,560,000
1992 $27,984,000 31,497,000 34,874,000 (2) $24,607,000
1991 $24,622,000 25,026,000 21,664,000 (2) $27,984,000
(1) Uncollectible accounts written off, net of recoveries.
(2) Obsolete inventory reduced to net realizable value.
20
INTERGRAPH CORPORATION AND SUBSIDIARIES
SCHEDULE IX ---- SHORT-TERM BORROWINGS
Column A Column B Column C Column D Column E Column F
--------------------- ------------- -------- ----------- ----------- --------
Weighted
Maximum Average average
Weighted amount amount interest
Category of aggregate average outstanding outstanding rate
short-term Balance at interest during during during
borrowings end of period rate period period period
--------------------- ------------- -------- ----------- ----------- --------
(2) (3)
Year ended Amounts payable
December 31, 1993: to banks (1) $6,896,000 8.1% $7,794,000 $1,443,000 9.6%
Year ended Amounts payable
December 31, 1992: to banks (1) --- --- $1,931,000 $ 228,000 10.9%
Year ended Amounts payable
December 31, 1991: to banks (1) $1,931,000 9.6% $3,356,000 $2,133,000 9.8%
(1) Represents financing arranged on behalf of an international
subsidiary with repayment guaranteed by the parent company.
(2) The average amount outstanding during the period was computed by
dividing the total of month-end outstanding principal balances by 12.
(3) The weighted average interest rate during the period was computed
by dividing actual interest expense for the period by the weighted
average amount outstanding during the period.
21
INTERGRAPH CORPORATION AND SUBSIDIARIES
SCHEDULE X ---- SUPPLEMENTARY INCOME STATEMENT INFORMATION
Column A Column B
----------------- --------------------
Charged to costs
Item and expenses
----------------- --------------------
Amortization of
intangible assets 1993 $20,072,000
1992 $12,800,000
1991 $ 9,168,000
Royalties 1993 $40,048,000
1992 $37,175,000
1991 $31,168,000
Advertising 1993 $10,609,000
1992 $10,800,000
1991 $11,826,000
22