SPX Technologies, Inc. — Annual Report 2008

Jun 27, 2008

11-K 1 a08-17395_111k.htm 11-K

*SECURITIES AND EXCHANGE COMMISSION*

*Washington, D.C. 20549*

*FORM 11-K*

*Annual Report Pursuant to Section 15(d) of*

*The Securities Exchange Act of 1934*

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

For the fiscal year ended December 31, 2007

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

For the transition period from to

*Commission file number 1-6948*

A. Full title of the plan and the address of the plan, if different from that of the issuer named below: SPX Corporation Savings Plan

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

*SPX Corporation*

*13515 Ballantyne Corporate Place*

*Charlotte, North Carolina 28277*

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*SPX Corporation Savings Plan*

Financial Report

December 31, 2007

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SPX Corporation Savings Plan

Contents

Report Letter
Statements of Net Assets
Available for Benefits	2
Statement of Changes in Net
Assets Available for Benefits	3
Notes to Financial
Statements	4-8
Schedule of
Assets Held at End of Year	Schedule
1

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Report of Independent Registered Public Accounting Firm

To the SPX Corporation Retirement and Welfare

Plan Administrative Committee

SPX Corporation Savings Plan

We have audited the accompanying statements of net assets available for benefits of the SPX Corporation Savings Plan as of December 31, 2007 and 2006 and the related statement of changes in net assets available for benefits for the year ended December 31, 2007. 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 of the SPX Corporation Savings Plan as of December 31, 2007 and 2006 and the changes in net assets for the year ended December 31, 2007, in conformity with accounting principles generally accepted in the United States of America.

Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets held at end of year as of December 31, 2007 is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ Plante & Moran, PLLC

Southfield, Michigan

June 25, 2008

1

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SPX Corporation Savings Plan

Statements of Net Assets Available for Benefits

	December 31 — 2007	2006
Assets
Participant-directed
investments:
Interest in SPX
Corporation Savings Trust, at fair value (Note 3)	$ 13,124,638	$ 23,052,674
Participant
loans	346,244	1,463,944
Total
participant-directed investments, at fair value	13,470,882	24,516,618
Contributions
receivable:
Employer	19,365	38,582
Employee	12,792	43,246
Total
contributions receivable	32,157	81,828
Adjustment from
fair value to contract value for interest in SPX Corporation Savings Trust
relating to fully benefit-responsive investment contracts	23,929	78,244
Net
Assets Available for Benefits	$ 13,526,968	$ 24,676,690

See Notes to Financial Statements.

2

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SPX Corporation Savings Plan

Statement of Changes in Net Assets Available for Benefits

Year Ended December 31, 2007

| Additions — Investment gain
from interest in the SPX Corporation Savings Trust (Note 3) | $ 1,853,913 | |
| --- | --- | --- |
| Participant loan
interest | 63,961 | |
| Contributions: | | |
| Employee | 862,479 | |
| Employer | 171,554 | |
| Total additions | 2,951,907 | |
| Deductions | | |
| Distributions to
participants | 14,065,329 | |
| Administrative
expenses | 25,759 | |
| Net assets
transferred to other unrelated plans | 10,541 | |
| Total deductions | 14,101,629 | |
| Net
Decrease | (11,149,722 | ) |
| Net
Assets Available for Benefits | | |
| Beginning of
year | 24,676,690 | |
| End of year | $ 13,526,968 | |

See Notes to Financial Statements.

3

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SPX Corporation Savings Plan

Notes to Financial Statements

December 31, 2007 and 2006

Note 1 - Description of the Plan

The following brief description of the SPX Corporation Savings Plan (the “Plan”) is provided for general information purposes only. Participants should refer to the plan agreement for more complete information.

*General* - The Plan is a defined contribution plan and is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). The Plan benefits primarily employees of SPX Corporation (the “Employer” or the “Company”) who are covered by collective bargaining agreements and who have met eligibility requirements.

*Contributions* - Contributions to the Plan by employees are limited to 17 percent of an employee’s annual before-tax compensation, taking into account the limitations imposed by the Internal Revenue Code. Participants in the Plan are at all times 100 percent vested in their contributions and earnings thereon. Employer contributions are determined based on the participant’s business unit.

*Participant Accounts* - Each participant’s account is credited with the participant’s contributions, the Employer’s matching and supplemental contributions, if any, and an allocation of plan earnings. Allocation of plan earnings to participant accounts is based on the participant’s proportionate share of funds in each of the investment accounts. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s account.

Participants elect to invest their account balance and contributions among various investment options provided by the SPX Corporation Retirement and Welfare Plan Administrative Committee (the “Committee”), including an option to invest in SPX Corporation common stock.

*Vesting* - Vesting in Employer contributions is dependent upon the participant’s business unit. Generally, participants vest over a five to six-year period. Forfeitures reduce the Employer’s contributions in the year of forfeiture or future years. Total forfeitures outstanding at December 31, 2007 and 2006 were $301,701 and $278,553, respectively.

*Payment of Benefits* - Participants in the Plan are able to receive benefits in a lump sum, monthly or yearly installments, or through annuity payments in the event of death, disability, or termination of employment. In addition, participants are also able to obtain their contributions and/or their pretax account balances if, subject to Employer approval, they are able to demonstrate financial hardship, as defined by the Plan. All withdrawal payments are made by Fidelity Management Trust Company (the “Trustee”).

4

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SPX Corporation Savings Plan

Notes to Financial Statements

December 31, 2007 and 2006

Note 1 - Description of the Plan (Continued)

*Participant Loans* - A participant can borrow from the Plan an amount that does not exceed the lesser of $50,000 or 50 percent of the participant’s vested account balance. The term of the loan may not exceed five years unless the loan is used in the purchase of a primary residence, in which case the term may be for up to 15 years. Loans bear market rates of interest as determined by the Committee.

*Voting Rights* - Each participant is entitled to exercise voting rights attributable to the shares allocated to his or her account. The Trustee is required to vote shares of common stock that have been allocated to participants but for which the Trustee received no voting instructions in the same manner and in the same proportion as the shares for which the Trustee received timely voting instructions.

*Administration* - The Company is the sponsor of the Plan. The Committee, as provided in the plan agreement, is the plan administrator and has responsibility for the administration of the Plan. Fidelity Management Trust Company functions as trustee and investment manager. Investment management fees and trustee fees are paid by the Plan in accordance with the plan agreement.

*Termination* - During 2007, the Plan experienced a partial plan termination as a result of the sale of a business unit. Affected participants were immediately vested in their account balance.

For the remaining participants, although it has not expressed any intent to do so, the Company has the right to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. Upon termination, all participants become 100 percent vested in their account balances.

Note 2 - Summary of Significant Accounting Policies

The accompanying financial statements have been prepared on the accrual basis.

*Basis of Accounting - The Financial Accounting Standards Board Staff Position AAG INV-1 and SOP 94-4-1, Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined-Contribution Health and Welfare and Pension Plans* , requires the Statement of Net Assets Available for Benefits present the fair value of the investment contracts as well as the adjustment of the fully benefit responsive investment contracts from fair value to contract value. The Statement of Changes in Net Assets Available for Benefits is prepared on a contract value basis.

5

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SPX Corporation Savings Plan

Notes to Financial Statements

December 31, 2007 and 2006

Note 2 - Summary of Significant Accounting Policies (Continued)

*Investments* - The Plan’s investments are stated at fair value. The fair value of the Plan’s interest in the SPX Corporation Savings Trust (the “Master Trust”) is based on the beginning of the year value of the Plan’s interest in the Master Trust plus actual contributions and allocated income less actual distributions (see Note 3). The Master Trust’s investments are stated at fair value. Common collective trust funds that invest in fully benefit responsive investment contracts (commonly known as stable value funds) within the Master Trust are adjusted to contract value in the financial statements. Contract value represents contributions made under the contract, plus interest at the contract rate, less funds used to pay plan benefits. The fair value of the common collective trust fund is based on discounting the related cash flows of the underlying guaranteed investment contracts based on current yields of similar instruments with comparable durations. Quoted market prices are used to value all other investments in the Master Trust. The value of participant loans are valued at their outstanding balances, which approximates fair value. Dividend income is accrued on the ex-dividend date.

*Benefit Payments* - Benefits are recorded when paid.

*Income Tax Status* - The Plan constitutes a qualified plan under Sections 401(a) and 401(k) of the Internal Revenue Code (the “Code”), and the related trust is exempt from federal income tax under Section 501(a) of the Code. The Plan obtained a determination letter on December 4, 2003, in which the Internal Revenue Service stated that the Plan, as then designed, was in compliance with the applicable requirements of the Code. Since the date of the determination letter, the Plan has been amended and restated. The plan administrator believes the Plan is currently designed and being operated in compliance with the applicable requirements of the Code. Therefore, no provision for income taxes has been included in the Plan’s financial statements.

*Use of Estimates* - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of additions and deductions during the reporting period. Actual results could differ from those estimates.

*New Accounting Pronouncement - In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 157, Fair Value Measurements* (SFAS 157). SFAS 157 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosures about fair value measurements. The provisions of SFAS 157 are effective for the fiscal year beginning after November 15, 2007. The Company is currently evaluating the impact, if any, of the provisions of SFAS 157 on the Plan’s financial statements.

6

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SPX Corporation Savings Plan

Notes to Financial Statements

December 31, 2007 and 2006

*Note 3 - Master Trust Fund*

The investments of certain defined contribution plans sponsored by SPX Corporation, including the SPX Corporation Savings Plan, are combined in the Master Trust. Under the terms of a trust agreement between Fidelity Management Trust Company (the “Bank”) and the Company, the Bank manages trust funds on behalf of the Plan. These transactions qualify as party-in-interest transactions as defined under ERISA guidelines. The Plan’s assets in the Master Trust represented approximately 2 percent and 3 percent of the total assets in the Master Trust as of December 31, 2007 and 2006, respectively. Investment income and administrative expenses related to the Master Trust are allocated to the individual plans based upon average monthly balances invested by each plan.

The total assets held in the Master Trust at December 31, 2007 and 2006 are as follows:

	2007	2006
Money market
fund	$ 5,761,560	$ 3,872,187
Common
collective trust fund	143,171,062	147,974,830
Mutual funds	527,666,354	514,523,100
Insurance
company general account	112,610	538,511
Employer
securities	206,430,845	135,519,544
Total Master
Trust investments, at fair value	883,142,431	802,428,172
Adjustment from
fair value to contract value for interest in SPX Corporation Savings Trust
relating to fully benefit-responsive contracts.	1,087,684	1,778,287
Total Master
Trust investments	$ 884,230,115	$ 804,206,459

The investment income for the Master Trust for the year ended December 31, 2007 is as follows:

| Net appreciation
in fair value of investments: | |
| --- | --- |
| Mutual funds | $ 5,548,731 |
| Employer
securities | 89,361,026 |
| Net appreciation | 94,909,757 |
| Interest and
dividends | 45,178,260 |
| Net investment
income | $ 140,088,017 |

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SPX Corporation Savings Plan

Notes to Financial Statements

December 31, 2007 and 2006

Note 4 - Reconciliation of Financial Statements to Form 5500 (Annual Return/Report of Employee Benefit Plan)

The net assets on the financial statements differ from the net assets on Form 5500 due to a common collective trust fund being recorded at contract value on the financial statements and at fair value on Form 5500. The net assets on the financial statements were higher than Form 5500 at December 31, 2007 by $23,929 and $78,244 at December 31, 2006. Additionally, the net decrease in the net assets available for benefits on Form 5500 for the year ended December 31, 2007 is lower by $54,315.

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SPX Corporation Savings Plan

Schedule of Assets Held at End of Year

Form 5500, Schedule H, Item 4i

EIN 38-1016240, Plan 403

December 31, 2007

(a)(b)	(c)	(d)	(e)
Identity of Issuer	Description	Cost	Current Value
Participants	Participant
loans bearing interest at rates from 4.00 percent to 10.50 percent	—	$ 346,244

Note - In compliance with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, investments in Master Trust assets are omitted from this schedule.

Schedule 1

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*SIGNATURES*

The Plan. 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 hereunto duly authorized.

| SPX CORPORATION SAVINGS
PLAN |
| --- |
| By: The SPX
Administrative Committee |

| Date: June 27,
2008 |
| --- |
| Kevin L.
Lilly |
| Senior
Vice President, Secretary and General
Counsel and Member of the SPX Administrative
Committee |

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*Exhibit Index*

Exhibit No.	Description
23.1	Consent of
Plante & Moran, PLLC

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