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
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ANNUAL
REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 [NO FEE REQUIRED, EFFECTIVE OCTOBER 7, 1996].
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For the
fiscal year ended December 31, 2007
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OR
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o
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TRANSITION
REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 [NO FEE REQUIRED].
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For the
transition period from
to
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Commission
file number
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A.
Full
title of the plan and the address of the plan, if different from that of the
issuer named below:
The Macerich Property
Management Company 401(k) Profit Sharing Plan
B.
Name
of issuer of the securities held pursuant to the plan and the address of its
principal executive office:
The Macerich Company
401 Wilshire Boulevard, Suite 700
Santa Monica, California 90401
REQUIRED INFORMATION
The Macerich Property
Management Company 401(k) Profit Sharing Plan (the Plan) is subject to
the Employee Retirement Income Security Act of 1974 (ERISA). Therefore, in
lieu of the requirements of Items 1-3 of Form 11-K, the financial
statements and schedules of the Plan for the fiscal year ended December 31,
2007, which have been prepared in accordance with the financial reporting
requirements of ERISA, are filed herewith and incorporated herein by this
reference.
The written consent of
Windes & McClaughry, Accountancy Corporation with respect to the
annual financial statements of the Plan is filed as Exhibit 23.1 to this
Annual Report.
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 on this 26th day of June 2008, by
the undersigned hereunto duly authorized.
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THE MACERICH PROPERTY
MANAGEMENT
COMPANY 401(K) PROFIT SHARING PLAN
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By:
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/s/ STEVEN L. SPECTOR
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Steven L. Spector,
Trustee
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By:
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/s/ SCOTT W. KINGSMORE
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Scott W. Kingsmore,
Trustee
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By:
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/s/ STEPHANIE CORCORAN
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Stephanie Corcoran,
Trustee
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EXHIBIT INDEX
(a)
Exhibits
Number
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Description
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23.1
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Consent of Independent
Registered Public Accounting Firm, Windes & McClaughry, Accountancy
Corporation
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32
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Section 906
Certification of Scott W. Kingsmore, Chief Executive Officer and Stephanie P.
Corcoran, Chief Financial Officer of the Plan
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THE MACERICH
PROPERTY MANAGEMENT COMPANY
401(k) PROFIT SHARING PLAN
FINANCIAL STATEMENTS
DECEMBER 31, 2007
WITH
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
AND SUPPLEMENTARY INFORMATION
INDEX TO FINANCIAL STATEMENTS
Report
of Independent Registered
Public Accounting Firm
To the Administrative Committee of
The Macerich Property Management Company 401(k) Profit Sharing Plan:
We have audited the accompanying statements of net assets available for
benefits of The Macerich Property Management Company 401(k) Profit Sharing Plan
(the 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 Plans
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. We were not engaged
to perform an audit of the Plans internal control over financial reporting.
Our audits included consideration of internal control over financial reporting
as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Plans internal control over financial reporting.
Accordingly, we express no such opinion. An audit also 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
Macerich Property Management Company 401(k) Profit Sharing Plan as of December
31, 2007 and 2006, and the changes in its net assets available for benefits 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 year end) is presented for purposes of additional analysis and
is not a required part of the basic financial statements but is supplementary
information required by the Department of Labors Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. This supplementary information is the responsibility of the Plans
management. The supplemental schedule has been subjected to the auditing
procedures applied in the audit 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/ Windes & McClaughry Accountancy Corporation
Long Beach, California
June 26, 2008
1
THE MACERICH PROPERTY MANAGEMENT
COMPANY
401(k) PROFIT SHARING PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 2007 and 2006
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December 31,
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2007
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2006
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ASSETS
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INVESTMENTS, at fair value
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Alliance Bernstein International Growth Fund A
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$
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4,675,924
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$
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3,501,733
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American Europacific Growth Fund A
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8,026,501
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6,754,976
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Cohen & Steers Realty Income Fund A
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558,899
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852,314
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Columbia Acorn Fund A
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3,564,480
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2,812,209
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Dreyfus Basic S&P 500 Index Fund
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4,810,745
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4,138,117
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Eaton Vance Large Cap Value A
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6,663,201
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5,558,209
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Franklin Mutual Qualified Fund A
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4,371,977
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3,718,328
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Macerich Company Common Stock Fund
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2,060,154
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2,715,027
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MFS Fixed Fund Institutional
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5,324,762
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5,526,451
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MFS Government Securities Fund A
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3,983,508
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3,246,030
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MFS Investors Growth Stock Fund A
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5,583,395
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4,611,931
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MFS Research Bond Fund A
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2,479,016
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2,049,662
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MFS Total Return Fund A
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3,969,401
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3,540,414
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Participant Loans
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25,164
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42,400
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Templeton Growth Fund A
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65,892
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UBS US Allocation Fund A
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4,085,821
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3,943,437
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60,182,948
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53,077,130
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RECEIVABLES
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Employer Contribution
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165
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Participant Contribution
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165
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Total Assets
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$
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60,182,948
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$
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53,077,295
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NET ASSETS AVAILABLE FOR BENEFITS, at fair value
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$
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60,182,948
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$
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53,077,295
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Adjustment from fair value to contract value for fully
benefit-responsive investment contracts
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52,488
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89,464
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NET ASSETS AVAILABLE FOR BENEFITS
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$
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60,235,436
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$
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53,166,759
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The accompanying notes are an integral part of these statements.
2
THE MACERICH PROPERTY MANAGEMENT
COMPANY
401(k) PROFIT SHARING PLAN
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 2007
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
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Employer contribution
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$
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2,627,590
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Contributions:
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Participants
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5,195,628
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Rollover
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644,024
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Investment income:
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Dividend and interest income
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3,125,067
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Net appreciation in fair value of investments
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1,093,220
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Total Additions
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12,685,529
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DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
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Benefits paid to participants
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5,616,852
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Total Deductions
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5,616,852
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NET INCREASE IN PLAN NET ASSETS
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7,068,677
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NET ASSETS AVAILABLE FOR PLAN BENEFITS:
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BEGINNING OF YEAR
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53,166,759
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END OF YEAR
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$
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60,235,436
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The accompanying notes are an integral part of this statement.
3
THE MACERICH PROPERTY MANAGEMENT
COMPANY
401(k) PROFIT SHARING PLAN
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007 AND 2006
NOTE 1:
DESCRIPTION OF PLAN
The following description
of The Macerich Property Management Company 401(k) Profit Sharing Plan
(the Plan) provides only general information.
Participants and other interested parties should refer to the Plan
document for a more complete description of the Plans provisions.
General
The Plan is a defined contribution pension plan
covering eligible employees of The Macerich Property Management Company LLC and
participating affiliates (the Company, the Employer and the Plan
Administrator) as defined in the Plan document. The Plan is subject to regulation under the
Employee Retirement Income Security Act of 1974 (ERISA) and the qualification
provisions of the Internal Revenue Code (the Code).
Effective as of January 1, 2004, the Plan adopted
the Safe Harbor provisions under Sections 401(k)(12) and 401(m)(11) of the
Code. In accordance with adopting these
provisions, the Company makes matching contributions equal to 100 percent of
the first 3 percent of compensation deferred by a participant and 50 percent of
the next 2 percent of compensation deferred by participant.
On or about July 26,
2002, Westcor Partners, LLC and Westcor Realty Limited Partnership
(collectively, Westcor) became part of the controlled group of the
Company. Westcor maintained the Westcor
401(k) Plan. The Westcor 401(k) Plan was merged into the Plan.
Effective as of March 28, 2005, employees who were previously participants
in Wilmorite Management Group, LLC 401(k) Plan were granted eligibility into
the Plan. Participant balances totaling
$2,787,646, were transferred into the Plan. The Plan does not allow for
participant loans, but was amended to allow these loans to be assumed by the
Plan and paid off on their original terms for the Wilmorite Management Group,
LLC 401(k) and the Westcor Partners 401(k) Plan. The Plan has loans outstanding of $25,164 at December 31,
2007.
On May 11, 2006, the
Plan changed its name from The Macerich Property Management Company Profit
Sharing Plan to The Macerich Property Management Company 401(k) Profit
Sharing Plan.
On July 1, 2006, the
Plan transferred all balances in the
Washington Mutual Investors Fund A and
Templeton Foreign Fund A into the Eaton Vance Large Cap Value - A and The
Alliance Bernstein International Growth - A funds, respectively.
On May 1, 2007 the Plan transferred all balances in
Templeton Growth Fund A into Alliance Bernstein International Growth Fund
A.
On November 14, 2007, the Plan Committee selected
the MFS Total Return Fund A as the qualified default investment alternative for
the Plan. Any deferrals, Company contributions, and/or rollovers for which Plan
participants and beneficiaries have failed to provide investment direction for
their account will be invested in the MFS Total Return Fund A after December 23,
2007.
4
THE MACERICH PROPERTY MANAGEMENT
COMPANY
401(k) PROFIT SHARING PLAN
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007 AND 2006
(CONTINUED)
NOTE 1:
DESCRIPTION OF PLAN (CONTINUED)
Administration
The Company has
designated an Administrative Committee (the Committee and the
Trustees), consisting of Steven L.
Spector, SVP General Counsel, Scott W. Kingsmore, SVP Finance, and Stephanie
Corcoran, VP Group Controller. Among
other duties, it is the responsibility of the Committee to select and monitor
performance of investments and maintain certain administrative records. The Committee approved Sun Life Retirement
Services, Inc. (the Custodian) to receive plan contributions from the
Company and invest and safeguard the Plans assets held for investment purposes
as directed by the Committee.
On January 1, 2006,
Sun Life Financial, Inc. acquired MFS Retirement Services, Inc., the
retirement plan provider formerly held under MFS Investment Management, Inc. In March 2007, the name was changed to
Sun Life Retirement Services, Inc.
Employee
Participation and Eligibility
All employees of the
Company may become eligible to participate in the Plan, provided the employee
is twenty-one years of age, has completed one year of employment during which
at least 1,000 hours of service were provided, and is not covered by a
collective bargaining agreement as to which retirement benefits were the
subject of good faith bargaining. An
eligible employee may enter the Plan on the January 1, April 1, July 1
or October 1, following his or her satisfaction of the eligibility
requirements.
The Plan gives employees
of newly acquired entities credit for years of service earned prior to the
Companys ownership. If this credit for
prior service allows the acquisition employee to meet Plan eligibility
requirements, they are granted the option of entering the Plan on the first day
of the month following their date of hire.
Contributions
Participants are
permitted to defer up to 50% of their compensation, as defined in the
Plan. The Company provides matching
contributions, under the Safe Harbor arrangement described above, equal to 100
percent of the first 3 percent of compensation deferred by a participant and 50
percent of the next 2 percent of compensation deferred by a participant.
Vesting
Provisions
Participant accounts
including salary deferrals and Safe Harbor matching contributions are 100 percent
vested at all times.
Participant Accounts
Each participants
account is credited with the participants contribution and allocations of a)
Companys safe harbor matching contribution, and b) Plan earnings, and charged
with any withdrawals or distributions requested by the participant, investment
losses and allocation of administrative expenses, if applicable. Allocations are based on participant
compensation or account balances, as defined in the Plan document. The benefit to which a participant is
entitled is the benefit that can be provided from the participants vested
account.
5
THE MACERICH PROPERTY MANAGEMENT
COMPANY
401(k) PROFIT SHARING PLAN
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007 AND 2006
(CONTINUED)
NOTE 1:
DESCRIPTION OF PLAN (CONTINUED)
Benefit Payments
On termination of service
due to death, disability, or retirement, a participant may elect to receive
either a lump-sum amount equal to the value of the participants vested
interest in his or her account or installment payments as permitted and defined
under the Plan. For termination of
service for other reasons, a participant may receive the value of the vested
interest in his or her account as a lump-sum distribution.
The Plan also permits
distributions for hardships, as defined in the Plan document.
Forfeitures
As
of January 1, 2004, the Plan was amended to eliminate employer profit
sharing contributions. Prior to January 2004,
the Company made discretionary profit sharing contributions from the net
profits of the current year. Profit
sharing contributions were subject to a vesting schedule. Any participant who terminates employment
with the Company will forfeit the non-vested portion of his/her profit sharing
account.
Effective
as of January 1, 2007, the Plan was amended to provide that forfeitures in
the Plan shall be used to reduce the Companys Safe Harbor Matching
Contributions for the Plan Year following the Plan Year in which the forfeiture
occurs. Forfeitures totaled
approximately $80,000 at December 31, 2007.
Related-Party Transactions
Certain plan investments
are shares of mutual funds managed by Sun Life Retirement Services Inc. Sun Life Retirement Services Inc. is the
custodian by the plan, and therefore, these transactions qualify as
party-in-interest transactions. Additionally, the Plan offers common stock in
the Company; therefore the Company qualifies as a party-in-interest.
Tax Status
The Plan obtained its
latest determination letter on June 10, 2002, in which the Internal
Revenue Service stated that the Plan, as amended, is in compliance with the
applicable sections of the Code. The
Plan has been amended since receiving the determination letter. However, the Plan administrator and the Plans
tax counsel believe that the plan is currently designed and being operated in
compliance with the applicable requirements of the Code.
Plan Expenses
All administrative
expenses of the Plan are paid by the Company, or, at the election of the
Company, from the Plan trust fund. For
the year ended December 31, 2007, there were no administrative expenses
paid from the Plan trust fund.
6
THE MACERICH PROPERTY MANAGEMENT
COMPANY
401(k) PROFIT SHARING PLAN
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007 AND 2006
(CONTINUED)
NOTE 2:
SIGNIFICANT ACCOUNTING POLICIES
Basis
of Presentation
The accompanying
financial statements have been prepared using the accrual basis of accounting
in conformity with accounting principles generally accepted in the United
States of America.
As described in Financial
Accounting Standards Board Staff Position, FSP 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 (the FSP), 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. As required by the
FSP, the Statement of Net Assets Available for Benefits presents the fair value
of the investment contracts as well as the adjustment of the fully
benefit-responsive investment contracts from fair value to contract value. The
Statement of Changes in Net Assets Available for benefits is prepared on a
contract value basis.
Investment Valuation and Income Recognition
In
compliance with the requirements of ERISA, cash and equity funds are reported
at fair value. The investment in the
common collective trust, which is a stable value open-end collective investment
trust, is reported at fair value and adjusted to contract value. The investments and changes therein of the
trust funds have been reported to the Plan by the Custodian using fair value
and contract value, as indicated.
Participant loans are valued at their outstanding balances, which
approximates fair value.
Purchases
and sales of securities are recorded on a trade-date basis. Interest income is
recorded on the accrual basis. Dividends are recorded on the ex-dividend date.
Use
of Estimates and Basis of Accounting
The preparation of
financial statements in conformity with accounting principles generally
accepted in the United States of America requires Plan management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure and changes therein of contingent assets and
liabilities. Actual results could differ
from those estimates.
Concentration
of Risk
The Plan invests in
various investment securities. Investment securities are exposed to various
risks such as interest rate, market, and credit 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 participants account balances and
the amounts reported in the statement of net assets available for benefits.
7
THE MACERICH PROPERTY MANAGEMENT
COMPANY
401(k) PROFIT SHARING PLAN
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007 AND 2006
(CONTINUED)
NOTE 2:
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Benefits Payable to Former Participants
The American Institute of
Certified Public Accountants (AICPA) has issued guidelines regarding amounts
due to former Plan participants but not paid by year-end. The AICPA requires these amounts to be
classified as net assets available for Plan benefits, and not as liabilities of
the Plan. Included in net assets
available for Plan benefits at December 31, 2007, are amounts which may
become payable to participants who are not active participants of the Plan.
Significant
Accounting Pronouncements
In
June 2006, the FASB issued Interpretation No. 48, Accounting for
Uncertainty in Income Taxes an interpretation of FASB Statement No. 109
(FIN 48). This interpretation
clarifies the accounting for uncertainty in income taxes recognized in an
enterprises financial statements in accordance with SFAS No. 109, Accounting
for Income Taxes. This interpretation
prescribes a recognition threshold and measurement attribute for the financial
statement recognition and measurement of a tax position taken or expected to be
taken in a tax return. This
interpretation also provides guidance on derecognition of previously recognized
income tax benefits, classification, interest and penalties, accounting in
interim periods, disclosure, and transition.
The adoption of FIN 48 has no effect on the Plans financial statements.
In September 2006, the FASB issued SFAS No. 157,
Fair Value Measurements (SFAS No. 157).
SFAS No. 157 defines fair value and establishes a framework for
measuring fair value when fair value is required for recognition or disclosure
purposes under Generally Accepted Accounting Principles (GAAP). The standard also expands disclosure about
fair value measurement but does not require any new fair value measurements. SFAS No. 157 is effective for financial
statements issued for fiscal years beginning after November 15, 2007. The Plans administrative committee is
currently evaluating the impact the adoption of SFAS No. 157 would have on
the Plans financial statements; however, it is not expected to have a material
impact on the Plans net assets available for benefits and changes in net
assets available for benefits.
Distributions
The Company made numerous distributions during the
year ended December 31, 2007. The
majority of the distributions related to minimal balances held by former
employees and participants in the Plan.
The Company distributed these balances to IRA accounts, which are held
by a trustee outside of the Plan, for any employees that could not be located
and had balances between $1,000 - $5,000.
NOTE 3:
INVESTMENT OPTIONS
As of December 31, 2007, participants may choose to
direct the investments of their accounts from the following:
Alliance Bernstein International Growth Fund - A
Alliance Bernstein International Growth Fund seeks
long-term capital appreciation. The fund
invests primarily in an international portfolio of equity securities of
companies located in both developed and emerging countries. It normally invests in the equity securities
of companies located in at least three countries (and normally substantially
more) other than the United States. The
portfolio includes companies that are established as a result of privatizations
of state enterprises.
8
THE MACERICH PROPERTY MANAGEMENT
COMPANY
401(k) PROFIT SHARING PLAN
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007 AND 2006
(CONTINUED)
NOTE 3:
INVESTMENTS OPTIONS
(CONTINUED)
American EuroPacific Growth Fund - A
American EuroPacific Growth
Fund seeks long-term capital growth. The
fund invests primarily in equity securities of issuers domiciled in Europe or
the Pacific Rim. It may also invest in
convertible securities and straight debt securities; no more than 5% of assets
may be invested in debt securities rated below investment-grade.
Cohen &
Steers Realty Income Fund - A
The investment objective of
the fund is high current income through investment in real estate
securities. Capital appreciation is a
secondary investment objective. Normally,
the fund invests at least 80% of its total assets in common stocks, and other
equity securities issued by real estate companies, such as real estate
investment trusts.
Columbia
Acorn Fund - A
Small-growth funds focus on
faster-growing companies whose shares are at the lower end of the
market-capitalization range. These funds
tend to favor companies in up-and-coming industries or young firms in their
early growth stages. As a result, the
category tends to move in sync with the market for initial public offerings.
Many of these funds invest in the technology, health-care, and services
sectors. Because these businesses are
fast-growing and often richly valued, their stocks tend to be volatile.
Dreyfus
Basic S&P 500 Index Fund
Large-blend funds have portfolios
that are fairly representative of the overall stock market in size, growth,
rates, and price. They tend to invest
across the spectrum of U.S. industries and owing to their broad exposure, the
funds returns are often similar to those of the S&P 500 Index.
Eaton Vance Large Cap Value Fund - A
Eaton Vance Large Cap Value
Fund seeks growth of capital and income.
The fund invests primarily in value stocks of large-cap companies. Value stocks are common stocks that in the
opinion of the investment adviser are inexpensive or undervalued relative to
the overall stock market. The manager
generally considers large-cap companies to be those companies having market
capitalizations equal to or greater than the median capitalization of companies
included in the S&P 500 index. It
normally invests at least 80% of net assets in equity securities of large-cap
companies. The fund may invest in
convertible debt securities.
Franklin Mutual Qualified Fund - A
Franklin Mutual Qualified
Fund seeks capital appreciation; income is secondary. The fund invests primarily in common and
preferred stocks, and debt of any credit quality. The advisor seeks securities that it believes
are selling at prices below their intrinsic value. The fund may also invest in companies
involved in prospective mergers, consolidations, liquidations, reorganizations,
or other special situations.
9
THE MACERICH PROPERTY MANAGEMENT
COMPANY
401(k) PROFIT SHARING PLAN
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007 AND 2006
(CONTINUED)
NOTE 3:
INVESTMENTS OPTIONS
(CONTINUED)
Macerich Company Common Stock Fund
This fund seeks capital appreciation and dividend
income through investment in common stock of The Macerich Company, the Plan
Sponsor, and thus a related party and party-in-interest. The Fund allows Plan members the ability to
participate in the ownership of their employers common stock. Participants are directed not to allocate
more than 25% of a participants account balance and/or deferrals to this
investment.
For liquidity purposes, a portion of this fund is
invested in a money market account classified as a registered investment
company. Total funds invested in the common stock and money market account is
$1,961,659 and $98,495, respectively, at December 31, 2007.
MFS Fixed Fund - Institutional
MFS Fixed Fund is a stable
value open-end collective investment trust.
The investment objective of the fund is to earn a current income stream
that is relatively consistent over time.
The fund strives to maintain a stable $1 unit value (although this is
not guaranteed) and has the potential for higher income than a money market
fund.
MFS Government Securities Fund - A
MFS Government Securities
Fund seeks current income and preservation of principal. The fund invests primarily in U.S. government
obligations, including U.S. Treasury obligations and government agency
mortgage-backed securities. It may invest
a significant portion of assets in Government National Mortgage Association
certificates.
MFS Investors Growth Stock Fund - A
Massachusetts Investors
Growth Stock Fund seeks long-term growth of capital and future income, rather
than current income. The fund invests
primarily in common stocks or convertibles issued by companies exhibiting
above-average prospects for long-term growth.
It may invest up to 35% of assets in foreign securities. It may also invest in securities issued in
emerging markets.
MFS
Research Bond Fund - A
This fund invests at least
80% of assets in fixed income securities such as investment-grade corporate
fixed income securities, U.S. government securities, U.S. high-yield fixed
income securities (commonly known as junk bonds), foreign fixed income
securities, and mortgage-backed and asset backed securities.
MFS Total Return Fund - A
MFS Total Return Fund
generally maintains 40% to 75% of assets in equity securities. It typically invests the balance in debt
securities, including up to 20% of assets in debt rated below BB. The fund may invest up to 20% in foreign
securities, including Brady Bonds.
UBS US Allocation Fund - A
UBS US Allocation Fund uses
an asset allocation model to set the levels of stocks, notes and cash. The model weighs expected earnings growth,
stock prices and short-term interest rates in setting its asset allocation.
10
THE MACERICH PROPERTY MANAGEMENT
COMPANY
401(k) PROFIT SHARING PLAN
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2007 AND 2006
(CONTINUED)
NOTE 4:
INVESTMENTS
The following presents investments that represent 5 percent
or more of the Plans net assets at fair value as of December 31, 2007 and
2006:
|
|
December 31,
|
|
|
|
2007
|
|
2006
|
|
|
|
|
|
|
|
Alliance Bernstein International Growth Fund-A
|
|
$
|
4,675,924
|
|
$
|
3,501,733
|
|
American EuroPacific Growth Fund-A
|
|
8,026,501
|
|
6,754,976
|
|
Columbia Acorn Fund-A
|
|
3,564,480
|
|
2,812,209
|
|
Dreyfus Basic S&P 500 Index Fund-A
|
|
4,810,745
|
|
4,138,117
|
|
Eaton Vance Large Cap Value-A
|
|
6,663,201
|
|
5,558,209
|
|
Franklin Mutual Qualified Fund-A
|
|
4,371,977
|
|
3,718,328
|
|
Macerich Company Common Stock Fund
|
|
|
|
2,715,027
|
|
MFS Fixed Fund Institutional-A
|
|
5,324,762
|
|
5,526,451
|
|
MFS Government Securities Fund-A
|
|
3,983,508
|
|
3,246,030
|
|
MFS Investors Growth Stock Fund-A
|
|
5,583,395
|
|
4,611,931
|
|
MFS Total Return Fund-A
|
|
3,969,401
|
|
3,540,414
|
|
UBS US Allocation Fund-A
|
|
4,085,821
|
|
3,943,437
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2007, net
appreciation (including gains and losses on investments bought, sold, and held
during the year) on registered investment companies was $1,512,284 and on the
Macerich Company Common Stock Fund was a loss of $419,064.
NOTE
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.
NOTE
6: SUBSEQUENT EVENTS
In December 2007, The Hartford Financial Services
Group, Inc. reached an agreement to acquire Sun Life Retirement Services, Inc. The transaction closed on February 29,
2008.
Effective March 31, 2008
Cohen & Steers Realty Income Fund -
A was closed to new investments and AIM Real Estate Fund - A was added to the
investment options.
11
THE MACERICH PROPERTY MANAGEMENT
COMPANY
401(k) PROFIT SHARING PLAN
EIN 95-4853294 PLAN NO. 001
SUPPLEMENTARY INFORMATION
SCHEDULES PROVIDED PURSUANT TO
THE DEPARTMENT OF LABOR RULES AND REGULATIONS
Note:
Certain schedules required under the
Employee Retirement Income Security Act of 1974 have been omitted, as they are
not applicable.
12
THE MACERICH PROPERTY MANAGEMENT
COMPANY
401(k) PROFIT SHARING PLAN
EIN 95-4853294 PLAN NO. 001
SCHEDULE OF ASSETS (HELD AT YEAR END)
DECEMBER 31, 2007
|
|
|
|
Current
|
|
Identity of Issuer
|
|
Description of Investment
|
|
Value
|
|
Alliance Bernstein Investments
|
|
Alliance Bernstein
International Growth Fund A
|
|
$
|
4,675,924
|
|
Capital
|
|
American EuroPacific
Growth Fund - A
|
|
8,026,501
|
|
Cohen & Steers
|
|
Cohen & Steers
Realty Income Fund - A
|
|
558,899
|
|
Columbia
|
|
Columbia Acorn Fund - A
|
|
3,564,480
|
|
Dreyfus Corp
|
|
Dreyfus Basic S&P
500 Index Fund A
|
|
4,810,745
|
|
Eaton Vance Corp.
|
|
Eaton Vance Large Cap
Value A
|
|
6,663,201
|
|
Franklin
|
|
Franklin Mutual
Qualified Fund A
|
|
4,371,977
|
|
Macerich *
|
|
Macerich Company Common
Stock
|
|
1,961,659
|
|
MFS *
|
|
MFS Money Market Fund
|
|
98,495
|
|
MFS *
|
|
MFS Fixed Fund
Institutional
|
|
5,377,250
|
|
MFS *
|
|
MFS Government
Securities Fund - A
|
|
3,983,508
|
|
MFS *
|
|
MFS Investors Growth
Stock Fund - A
|
|
5,583,395
|
|
MFS *
|
|
MFS Research Bond Fund
- A
|
|
2,479,016
|
|
MFS *
|
|
MFS Total Return Fund
A
|
|
3,969,401
|
|
*
|
|
Participant Loans 5.01%
to 10.56%
|
|
25,164
|
|
UBS
|
|
UBS US Allocation Fund
- A
|
|
4,085,821
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
60,235,436
|
|
*Indicates a
party-in-interest
13
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