-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DlFg83XEomYGynj3vS5wsdlM+dEV9ZrknZ2GtBI0gaAUrVSJP5jK/DQQur97lzWc Ft0MJdBXUBu8WczNrvArfg== 0000356226-98-000005.txt : 19980701 0000356226-98-000005.hdr.sgml : 19980701 ACCESSION NUMBER: 0000356226-98-000005 CONFORMED SUBMISSION TYPE: 10-K/A PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980630 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: POLICY MANAGEMENT SYSTEMS CORP CENTRAL INDEX KEY: 0000356226 STANDARD INDUSTRIAL CLASSIFICATION: INSURANCE AGENTS BROKERS & SERVICES [6411] IRS NUMBER: 570723125 STATE OF INCORPORATION: SC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K/A SEC ACT: SEC FILE NUMBER: 001-10557 FILM NUMBER: 98658439 BUSINESS ADDRESS: STREET 1: ONE PMSC CTR STREET 2: PO BOX TEN CITY: COLUMBIA STATE: SC ZIP: 29202 BUSINESS PHONE: 8037354000 10-K/A 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K/A AMENDMENT 1 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended DECEMBER 31, 1997 Commission file number 1-10557 POLICY MANAGEMENT SYSTEMS CORPORATION (Exact name of registrant as specified in its charter) SOUTH CAROLINA 57-0723125 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) ONE PMSC CENTER (P.O. BOX TEN) BLYTHEWOOD, S.C. (COLUMBIA, S.C.) 29016 (29202) (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (803) 333-4000 Securities registered pursuant to Section 12(b) of the Act: Name of each exchange Title of each class on which registered COMMON STOCK, PAR VALUE $.01 PER SHARE NEW YORK STOCK EXCHANGE Securities registered pursuant to Section 12(g) of the Act: None 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 --- --- 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 ----- The aggregate market value of the voting stock held by non-affiliates of the registrant was $1,333,834,259 at March 17, 1998, based on the closing market price of the Common Stock on such date, as reported by the New York Stock Exchange. The total number of shares of the registrant's Common Stock, $.01 per share par value, outstanding at March 17, 1998, was 18,387,185. The undersigned registrant hereby amends the following items, financial statements, exhibits or other portions of its Annual Report on Form 10-K for the fiscal year ended December 31, 1997 as set forth in the pages attached hereto: List all such items, financial statements, exhibits or other portions amended. (1) Item 14 (2) Form 11-K (401(k) Retirement Savings Plan) Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this amendment to be signed on its behalf by the undersigned, thereunto duly authorized. (REGISTRANT) POLICY MANAGEMENT SYSTEMS CORPORATION Date: June 30, 1998 By: Timothy V. Williams Executive Vice President and Chief Financial Officer PART IV ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K FINANCIAL STATEMENTS AND SCHEDULES See Index to Consolidated Financial Statements and Supplementary Data on page 25. EXHIBITS FILED Exhibits required to be filed with this Annual Report on Form 10-K are listed in the following Exhibit Index. Certain of such exhibits which have heretofore been filed with the Securities and Exchange Commission and which are designated by reference to their exhibit numbers in prior filings are hereby incorporated herein by reference and made a part thereof. Pursuant to Rule 15d-21 promulgated under the Securities Exchange Act of 1934, the following annual report for the Company's 401 (k) Retirement Plan is filed herewith: Form 11-K for the Company's 401 (k) Retirement Savings Plan for the year ended December 31, 1997 is incorporated herein by reference. FORM 8-K The Company did not file any reports on Form 8-K during the last quarter of the year ended December 31, 1997. EX-99 2 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 11-K ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended DECEMBER 31, 1997 Commission file number 1-10557 POLICY MANAGEMENT SYSTEMS CORPORATION 401(K) RETIREMENT SAVINGS PLAN Name of issuer of the securities held pursuant to the Plan and the address of its principal executive office: POLICY MANAGEMENT SYSTEMS CORPORATION ONE PMSC CENTER, BLYTHEWOOD, SOUTH CAROLINA 29016 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, Policy Management Systems Corporation 401(k) Retirement Savings Plan Committee has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. POLICY MANAGEMENT SYSTEMS CORPORATION 401(k) Retirement Savings Plan Date: June 30, 1998 By: Timothy V. Williams Executive Vice President and Chief Financial Officer EX-99 3 POLICY MANAGEMENT SYSTEMS CORPORATION 401(K) RETIREMENT SAVINGS PLAN FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES For the years ended December 31, 1997 and 1996 With Report of Independent Accountants
POLICY MANAGEMENT SYSTEMS CORPORATION 401(K) RETIREMENT SAVINGS PLAN Index to Financial Statements and Supplemental Schedules Page REPORT OF INDEPENDENT ACCOUNTANTS . . . . . . . . . . . . . . . . . . 2 FINANCIAL STATEMENTS: Statements of Net Assets Available for Plan Benefits, with Fund Information as of December 31, 1997 and 1996. . . . . . . 3 - 7 Statements of Changes in Net Assets Available for Plan Benefits, with Fund Information for the years ended December 31, 1997 and 1996 . . 8 - 12 Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . 13 - 16 SUPPLEMENTAL SCHEDULES: Form 5500, Item 27(a) - Schedule of Assets Held for Investment Purposes, as of December 31, 1997. . . . . . . . . . 18 - 19 Form 5500, Item 27(d) - Schedule of Reportable Transactions for the year ended December 31, 1997 . . . . . . . . . 20 EXHIBITS: Consent of Independent Accountants, annexed hereto. . . . . . . . . . 21
REPORT OF INDEPENDENT ACCOUNTANTS To the Administrative Committee of Policy Management Systems Corporation 401(k) Retirement Savings Plan We have audited the accompanying statements of net assets available for plan benefits of the Policy Management Systems Corporation 401(k) Retirement Savings Plan (the "Plan") as of December 31, 1997 and 1996, and the related statements of changes in net assets available for plan benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of the Plan at December 31, 1997 and 1996, and the changes in net assets available for plan benefits for the years then ended, in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of assets held for investment purposes and reportable transactions are presented for the purpose of additional analysis and are not a required part of the basic financial statements, but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The fund information in the statement of net assets available for plan benefits and the statement of changes in net assets available for plan benefits is presented for purposes of additional analysis rather than to present the net assets available for plan benefits and changes in net assets available for plan benefits of each fund. The supplemental schedules and fund information have been subjected to the auditing procedures applied in our audit of the basic financial statements and, in our opinion, are fairly stated in all material respects, in relation to the basic financial statements taken as a whole. Coopers & Lybrand L.L.P. Atlanta, Georgia June 15, 1998
POLICY MANAGEMENT SYSTEMS CORPORATION 401(K) RETIREMENT SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION AS OF DECEMBER 31, 1997 Fidelity Fidelity Fidelity Evergreen Retirement Puritan Magellan Short-Int. Loan Government Mutual Mutual Bond ---------- ----------- ----------- ----------- ----------- ASSETS Investments, at current value: Short-term investments . . . $ - $ - $ 28 $ 3 $ 1 Mutual Funds . . . . . . . . - 17,586,013 24,438,043 30,208,172 3,469,841 Common Stock . . . . . . . . - - - - - ---------- ----------- ----------- ----------- ----------- Total Investments . . . - 17,586,013 24,438,071 30,208,175 3,469,842 ---------- ----------- ----------- ----------- ----------- Receivables: Loans receivable . . . . . . 3,065,511 - - - - Accrued interest receivable. - - - - 18,882 ---------- ----------- ----------- ----------- ----------- Total Receivables . . . 3,065,511 - - - 18,882 ---------- ----------- ----------- ----------- ----------- Cash. . . . . . . . . . 2,675 80,206 167 272 30 ---------- ----------- ----------- ----------- ----------- Total Assets. . . . 3,068,186 17,666,219 24,438,238 30,208,447 3,488,754 ---------- ----------- ----------- ----------- ----------- LIABILITIES Accounts payable . . . . . . - 80,032 - - - ---------- ----------- ----------- ----------- ----------- Total Liabilities . . - 80,032 - - - ---------- ----------- ----------- ----------- ----------- Net assets available for plan benefits $3,068,186 $17,586,187 $24,438,238 $30,208,447 $ 3,488,754 ========== =========== =========== =========== =========== Continued on next page See accompanying notes.
POLICY MANAGEMENT SYSTEMS CORPORATION 401(K) RETIREMENT SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION AS OF DECEMBER 31, 1997 (CONTINUED) Smith Smith Smith PMSC Barney Barney Barney Stock Forfeiture Fundamental International Equities ----------- ----------- ------------ -------------- --------- ASSETS Investments, at current value: Short-term investments . . . $ 388 $ 192 $ 9 $ 2 $ - Mutual Funds . . . . . . . . - - 6,271,240 2,382,974 - Common Stock . . . . . . . . 23,263,911 220,140 - - - ----------- ----------- ------------ -------------- --------- Total Investments . . . 23,264,299 220,332 6,271,249 2,382,976 - ----------- ----------- ------------ -------------- --------- Receivables: Loans receivable . . . . . . - - - - - Accrued interest receivable. - - - - - ----------- ----------- ------------ -------------- --------- Total Receivables . . . - - - - - ----------- ----------- ------------ -------------- --------- Cash. . . . . . . . . . 285 5 364,053 15 - ----------- ----------- ------------ -------------- --------- Total Assets. . . . 23,264,584 220,337 6,635,302 2,382,991 0 ----------- ----------- ------------ -------------- --------- LIABILITIES Accounts payable . . . . . . - - 364,018 - - ----------- ----------- ------------ -------------- --------- Total Liabilities . . - - 364,018 - - ----------- ----------- ------------ -------------- --------- Net assets available for plan benefits $23,264,584 $ 220,337 $ 6,271,284 $ 2,382,991 $ 0 =========== =========== ============ ============== ========= Continued on next page See accompanying notes.
POLICY MANAGEMENT SYSTEMS CORPORATION 401(K) RETIREMENT SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION AS OF DECEMBER 31, 1997 (CONTINUED) Evergreen Putnam OTC First Union Growth & & Emerging Enhanced Income Growth Stock Market Total ---------- ----------- ------------- ------------ ASSETS Investments, at current value: Short-term investments . . . $ 3,045 $ 1 $ 1 $ 3,670 Mutual Funds . . . . . . . . 1,722,951 4,324,049 1,294,212 91,697,495 Common Stock . . . . . . . . - - - 23,484,051 ---------- ----------- ------------- ------------ Total Investments. . . . 1,725,996 4,324,050 1,294,213 115,185,216 ---------- ----------- ------------- ------------ Receivables: Loans receivable . . . . . . - - - 3,065,511 Accrued interest receivable. - - - 18,882 ---------- ----------- ------------- ------------ Total Receivables . . . - - - 3,084,393 ---------- ----------- ------------- ------------ Cash . . . . . . . . . . . . . 61 61 30 447,860 ---------- ----------- ------------- ------------ Total Assets . . . . 1,726,057 4,324,111 1,294,243 118,717,469 ---------- ----------- ------------- ------------ LIABILITIES Accounts payable . . . . . . - - - 444,050 ---------- ----------- ------------- ------------ Total Liabilities . . - - - 444,050 ---------- ----------- ------------- ------------ Net assets available for plan benefits $1,726,057 $ 4,324,111 $ 1,294,243 $118,273,419 ========== =========== ============= ============ See accompanying notes.
POLICY MANAGEMENT SYSTEMS CORPORATION 401(K) RETIREMENT SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION AS OF DECEMBER 31, 1996 Fidelity Fidelity Fidelity Evergreen Retirement Puritan Magellan Short-Int. PMSC Loan Government Mutual Mutual Bond Stock ---------- ----------- ------------ ------------ ----------- ------------ ASSETS Investments, at current value: Short-term investments . . . $ - $ 10,396 $ 8,962 $ 130,375 $ 11,503 $ 15,663 Mutual Funds . . . . . . . . - 19,047,561 18,032,059 23,848,712 3,241,251 - Common Stock . . . . . . . . - - - - - 12,372,653 ---------- ----------- ------------ ------------ ----------- ------------ Total Investments . . . - 19,057,957 18,041,021 23,979,087 3,252,754 12,388,316 ---------- ----------- ------------ ------------ ----------- ------------ Receivables: Loans receivable . . . . . . 3,066,650 - - - - - Employer contributions receivable . . . . . . . . - - - - - 166,602 ---------- ----------- ------------ ------------ ----------- ------------ Total Receivables . . . 3,066,650 - - - - 166,602 ---------- ----------- ------------ ------------ ----------- ------------ Cash. . . . . . . . . . 4,050 83,657 (879) (449) 49 (507) ---------- ----------- ------------ ------------ ----------- ------------ Total Assets. . . . 3,070,700 19,141,614 18,040,142 23,978,638 3,252,803 12,554,411 ---------- ----------- ------------ ------------ ----------- ------------ LIABILITIES Accounts payable . . . . . . - 136,153 - - - 13,063 ---------- ----------- ------------ ------------ ----------- ------------ Total Liabilities . . - 136,153 - - - 13,063 ---------- ----------- ------------ ------------ ----------- ------------ Net assets available for plan benefits $3,070,700 $19,005,461 $18,040,142 $23,978,638 $ 3,252,803 $12,541,348 ========== =========== ============ ============ =========== ============ Continued on next page See accompanying notes.
POLICY MANAGEMENT SYSTEMS CORPORATION 401(K) RETIREMENT SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION AS OF DECEMBER 31, 1996 (CONTINUED) Smith Smith Smith Barney Barney Barney Forfeiture Fundamental International Equities Total ----------- ------------ -------------- ---------- ----------- ASSETS Investments, at current value: Short-term investments . . . $ 2,182 $ 7 $ 4 $ 168 $ 179,260 Mutual Funds . . . . . . . . - 4,539,952 2,432,104 4,409,003 75,550,642 Common Stock . . . . . . . . 159,555 - - - 12,532,208 ----------- ------------ -------------- ---------- ----------- Total Investments. . . . 161,737 4,539,959 2,432,108 4,409,171 88,262,110 ----------- ------------ -------------- ---------- ----------- Receivables: Loans receivable . . . . . . - - - - 3,066,650 Employer contributions receivable . . . . . . . . - - - - 166,602 ----------- ------------ -------------- ---------- ----------- Total Receivables . . . - - - - 3,233,252 ----------- ------------ -------------- ---------- ----------- Cash . . . . . . . . . . . . . 11 63,682 1,716 33 151,363 ----------- ------------ -------------- ---------- ----------- Total Assets . . . . 161,748 4,603,641 2,433,824 4,409,204 91,646,725 ----------- ------------ -------------- ---------- ----------- LIABILITIES Accounts payable . . . . . . - 63,657 1,702 - 214,575 ----------- ------------ -------------- ---------- ----------- Total Liabilities . . - 63,657 1,702 - 214,575 ----------- ------------ -------------- ---------- ----------- Net assets available for plan benefits $ 161,748 $ 4,539,984 $ 2,432,122 $4,409,204 $91,432,150 =========== ============ ============== ========== =========== See accompanying notes.
POLICY MANAGEMENT SYSTEMS CORPORATION 401 (K) RETIREMENT SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1997 Fidelity Fidelity Fidelity Evergreen Retirement Puritan Magellan Short-Int. Loan Government Mutual Mutual Bond ----------- ------------ ----------- ------------ ------------ Additions to net assets attributed to: Investment Income: Net appreciation (depreciation) in market value . . . . . . . . . . . . $ - $ - $ 2,320,047 $ 4,304,540 $ (13,261) Dividends and interest . . . . . . . . - 971,191 1,911,834 1,931,933 231,435 ----------- ------------ ----------- ------------ ------------ - 971,191 4,231,881 6,236,473 218,174 ----------- ------------ ----------- ------------ ------------ Cash Contributions: Employer. . . . . . . . . . . . . . . - - - - - Employee. . . . . . . . . . . . . . . - 836,191 2,122,397 2,714,562 441,590 ----------- ------------ ----------- ------------ ------------ - 836,191 2,122,397 2,714,562 441,590 ----------- ------------ ----------- ------------ ------------ Transfers. . . . . . . . . . . . . . . . (9,450) (1,397,817) 1,145,221 (1,065,681) (299,430) Loan repayments. . . . . . . . . . . . . (734,994) 130,564 307,902 412,622 58,882 Other additions. . . . . . . . . . . . . 8,075 11,771 4,903 5,793 1,052 ----------- ------------ ----------- ------------ ------------ Total Additions (Deductions). . . . (736,369) 551,900 7,812,304 8,303,769 420,268 ----------- ------------ ----------- ------------ ------------ Deductions from net assets attributed to: Distributions. . . . . . . . . . . . . 178,881 1,476,080 1,191,135 1,852,997 136,266 Forfeitures. . . . . . . . . . . . . . - (807) 19 451 36 Loan disbursements . . . . . . . . . . (912,736) 165,473 221,873 214,130 42,602 Other deductions . . . . . . . . . . . - 330,428 1,181 6,382 5,413 ----------- ------------ ----------- ------------ ------------ Total Deductions (Additions). . . (733,855) 1,971,174 1,414,208 2,073,960 184,317 ----------- ------------ ----------- ------------ ------------ Net increases (decreases) . . . . . . . (2,514) (1,419,274) 6,398,096 6,229,809 235,951 ----------- ------------ ----------- ------------ ------------ Net assets available for plan benefits Beginning of year . . . . . . . . . . 3,070,700 19,005,461 18,040,142 23,978,638 3,252,803 ----------- ------------ ----------- ------------ ------------ End of year . . . . . . . . . . . . . $3,068,186 $17,586,187 $24,438,238 $30,208,447 $ 3,488,754 =========== ============ =========== ============ ============ Continued on next page See accompanying notes.
POLICY MANAGEMENT SYSTEMS CORPORATION 401 (K) RETIREMENT SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1997 (CONTINUED) Smith Smith Smith PMSC Barney Barney Barney Stock Forfeiture Fundamental International Equities ------------ ------------ ------------- --------------- ------------ Additions to net assets attributed to: Investment Income: Net appreciation (depreciation) in market value . . . . . . . . . . . . $ 7,803,480 $ 38,864 $ 407,686 $ 13,695 $ (289,813) Dividends and interest . . . . . . . . 4,474 263 363,992 505 734 ------------ ------------ ------------- --------------- ------------ 7,807,954 39,127 771,678 14,200 (289,079) ------------ ------------ ------------- --------------- ------------ Cash Contributions: Employer. . . . . . . . . . . . . . . 3,848,001 - - - - Employee. . . . . . . . . . . . . . . 346,094 - 675,979 315,831 284,188 ------------ ------------ ------------- --------------- ------------ 4,194,095 - 675,979 315,831 284,188 ------------ ------------ ------------- --------------- ------------ Transfers. . . . . . . . . . . . . . . . (198,185) (309,893) 397,824 (322,032) (4,350,208) Loan repayments. . . . . . . . . . . . . 45,953 - 88,695 41,671 42,549 Other additions. . . . . . . . . . . . . 855 47 2,173 1,117 337 ------------ ------------ ------------- --------------- ------------ Total Additions (Deductions). . . . 11,850,672 (270,719) 1,936,349 50,787 (4,312,213) ------------ ------------ ------------- --------------- ------------ Deductions from net assets attributed to: Distributions. . . . . . . . . . . . . 616,956 - 145,551 67,809 70,731 Forfeitures. . . . . . . . . . . . . . 329,747 (329,308) (66) (10) (67) Loan disbursements . . . . . . . . . . 155,683 - 50,609 28,071 22,765 Other deductions . . . . . . . . . . . 25,050 - 8,955 4,048 3,562 ------------ ------------ ------------- --------------- ------------ Total Deductions (Additions). . . 1,127,436 (329,308) 205,049 99,918 96,991 ------------ ------------ ------------- --------------- ------------ Net increases (decreases) . . . . . . . 10,723,236 58,589 1,731,300 (49,131) (4,409,204) ------------ ------------ ------------- --------------- ------------ Net assets available for plan benefits Beginning of year . . . . . . . . . . 12,541,348 161,748 4,539,984 2,432,122 4,409,204 ------------ ------------ ------------- --------------- ------------ End of year . . . . . . . . . . . . . $23,264,584 $ 220,337 $ 6,271,284 $ 2,382,991 $ 0 ============ ============ ============= =============== ============ Continued on next page See accompanying notes.
POLICY MANAGEMENT SYSTEMS CORPORATION 401 (K) RETIREMENT SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1997 (CONTINUED) Evergreen Putnam OTC First Union Growth & & Emerging Enhanced Income Growth Stock Market Total ---------- ----------- ------------- ------------ Additions to net assets attributed to: Investment Income: Net appreciation (depreciation) in market value . . . . . . . . . . . . $ 48,364 $ 261,115 $ 54,667 $ 14,949,384 Dividends and interest . . . . . . . . 60,226 200 127 5,476,914 ---------- ----------- ------------- ------------ 108,590 261,315 54,794 20,426,298 ---------- ----------- ------------- ------------ Cash Contributions: Employer. . . . . . . . . . . . . . . - - - 3,848,001 Employee. . . . . . . . . . . . . . . 137,296 314,492 78,214 8,266,834 ---------- ----------- ------------- ------------ 137,296 314,492 78,214 12,114,835 ---------- ----------- ------------- ------------ Transfers. . . . . . . . . . . . . . . . 1,470,239 3,785,384 1,154,028 0 Loan repayments. . . . . . . . . . . . . 14,253 44,380 9,486 461,963 Other additions. . . . . . . . . . . . . 294 736 201 37,354 ---------- ----------- ------------- ------------ Total Additions . . . . . . . . . . 1,730,672 4,406,307 1,296,723 33,040,450 ---------- ----------- ------------- ------------ Deductions from net assets attributed to: Distributions. . . . . . . . . . . . . 773 70,914 1,960 5,810,053 Forfeitures. . . . . . . . . . . . . . - 5 - 0 Loan disbursements . . . . . . . . . . 3,140 8,390 - 0 Other deductions . . . . . . . . . . . 702 2,887 520 389,128 ---------- ----------- ------------- ------------ Total Deductions. . . . . . . . . 4,615 82,196 2,480 6,199,181 ---------- ----------- ------------- ------------ Net increases (decreases) . . . . . . . 1,726,057 4,324,111 1,294,243 26,841,269 ---------- ----------- ------------- ------------ Net assets available for plan benefits Beginning of year . . . . . . . . . . 0 0 0 91,432,150 ---------- ----------- ------------- ------------ End of year . . . . . . . . . . . . . $1,726,057 $ 4,324,111 $ 1,294,243 $118,273,419 ========== =========== ============= ============ See accompanying notes.
POLICY MANAGEMENT SYSTEMS CORPORATION 401 (K) RETIREMENT SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1996 Fidelity Fidelity Fidelity Evergreen Retirement Puritan Magellan Short-Int. PMSC Loan Government Mutual Mutual Bond Stock ------------ ------------ ------------ ------------ ------------ ------------ Additions to net assets attributed to: Investment Income: Net appreciation (depreciation) in market value . . . . . . . . . . . . $ - $ - $ 312,374 $(1,117,737) $ (82,415) $ 204,150 Dividends and interest . . . . . . . . - 1,040,707 2,058,216 3,655,358 218,613 3,405 ------------ ------------ ------------ ------------ ------------ ------------ - 1,040,707 2,370,590 2,537,621 136,198 207,555 ------------ ------------ ------------ ------------ ------------ ------------ Cash Contributions: Employer . . . . . . . . . . . . . . - - - - - 3,282,548 Employee . . . . . . . . . . . . . . - 793,927 1,935,134 2,894,473 458,763 224,792 ------------ ------------ ------------ ------------ ------------ ------------ - 793,927 1,935,134 2,894,473 458,763 3,507,340 ------------ ------------ ------------ ------------ ------------ ------------ Transfers. . . . . . . . . . . . . . . . (8,900) (2,954,159) (86,647) (124,485) (216,506) (225,268) Loan repayments. . . . . . . . . . . . . (690,062) 103,839 250,600 368,709 63,555 45,976 Securities settlement. . . . . . . . . . - - - - - 239,366 Other additions. . . . . . . . . . . . . - - 97,668 11,654 - 13,870 ------------ ------------ ------------ ------------ ------------ ------------ Total Additions (Deductions). . . (698,962) (1,015,686) 4,567,345 5,687,972 442,010 3,788,839 ------------ ------------ ------------ ------------ ------------ ------------ Deductions from net assets attributed to: Distributions . . . . . . . . . . . . 177,815 2,805,675 1,788,953 2,407,635 292,227 891,649 Forfeitures . . . . . . . . . . . . . - 18,025 (2,067) (5,657) (5,615) 506,516 Loan disbursements. . . . . . . . . . (1,596,492) 498,779 259,324 440,401 68,249 184,123 Other deductions. . . . . . . . . . . (12,950) 309,047 17,175 14,897 5,638 20,805 ------------ ------------ ------------ ------------ ------------ ------------ Total Deductions (Additions) . . (1,431,627) 3,631,526 2,063,385 2,857,276 360,499 1,603,093 ------------ ------------ ------------ ------------ ------------ ------------ Net increases (decreases) . . . 732,665 (4,647,212) 2,503,960 2,830,696 81,511 2,185,746 ------------ ------------ ------------ ------------ ------------ ------------ Net assets available for plan benefits Beginning of year . . . . . . . . . . . 2,338,035 23,652,673 15,536,182 21,147,942 3,171,292 10,355,602 ------------ ------------ ------------ ------------ ------------ ------------ End of year . . . . . . . . . . . . . . $ 3,070,700 $19,005,461 $18,040,142 $23,978,638 $ 3,252,803 $12,541,348 ============ ============ ============ ============ ============ ============ Continued on next page See accompanying notes.
POLICY MANAGEMENT SYSTEMS CORPORATION 401 (K) RETIREMENT SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1996 (CONTINUED) Smith Smith Smith Barney Barney Barney Forfeiture Fundamental International Equities Total ------------ ------------- --------------- ----------- ------------ Additions to net assets attributed to: Investment Income: Net appreciation (depreciation) in market value . . . . . . . . . . . . $ (28,021) $ 410,227 $ 221,973 $ (309,334) $ (388,783) Dividends and interest . . . . . . . . 1,993 252,892 18,399 88,416 7,337,999 ------------ ------------- --------------- ----------- ------------ (26,028) 663,119 240,372 (220,918) 6,949,216 ------------ ------------- --------------- ----------- ------------ Cash Contributions: Employer. . . . . . . . . . . . . . . - - - - 3,282,548 Employee. . . . . . . . . . . . . . . - 342,539 209,420 361,771 7,220,819 ------------ ------------- --------------- ----------- ------------ - 342,539 209,420 361,771 10,503,367 ------------ ------------- --------------- ----------- ------------ Transfers. . . . . . . . . . . . . . . . (315,801) 836,073 481,677 2,614,016 0 Loan repayments. . . . . . . . . . . . . - 47,363 30,528 50,743 271,251 Securities settlement. . . . . . . . . . - - - - 239,366 Other additions. . . . . . . . . . . . . 604 679 679 679 125,833 ------------ ------------- --------------- ----------- ------------ Total Additions (Deductions). . . . (341,225) 1,889,773 962,676 2,806,291 18,089,033 ------------ ------------- --------------- ----------- ------------ Deductions from net assets attributed to: Distributions. . . . . . . . . . . . . - 319,434 135,661 289,812 9,108,861 Forfeitures. . . . . . . . . . . . . . (510,554) (230) (40) (378) 0 Loan disbursements . . . . . . . . . . - 65,248 36,852 43,516 0 Other deductions . . . . . . . . . . . 17,156 6,388 3,514 6,608 388,278 ------------ ------------- --------------- ----------- ------------ Total Deductions (Additions). . . (493,398) 390,840 175,987 339,558 9,497,139 ------------ ------------- --------------- ----------- ------------ Net increases (decreases) . . . . . . . 152,173 1,498,933 786,689 2,466,733 8,591,894 ------------ ------------- --------------- ----------- ------------ Net assets available for plan benefits Beginning of year . . . . . . . . . . 9,575 3,041,051 1,645,433 1,942,471 82,840,256 ------------ ------------- --------------- ----------- ------------ End of year . . . . . . . . . . . . . $ 161,748 $ 4,539,984 $ 2,432,122 $4,409,204 $91,432,150 ============ ============= =============== =========== ============ See accompanying notes.
POLICY MANAGEMENT SYSTEMS CORPORATION 401(K) RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 1. ESTABLISHMENT OF PLAN The Board of Directors of Policy Management Systems Corporation (the "Company") established the Policy Management Systems Corporation 401(k) Retirement Savings Plan (the "Plan") to provide a before-tax savings retirement program for all eligible employees of the Company. The Plan became effective on April 1, 1990 and is subject to the requirements of the Employee Retirement Income Security Act of 1974 (ERISA). 2. PLAN DESCRIPTION GENERAL The following description of the Plan is provided for general information purposes only. Participants should refer to the Plan document for a more complete description of the Plan's provisions. ELIGIBILITY All employees of the Company and its participating affiliates, who are U.S. citizens or U.S. residents, who have attained the age of 18, and who have completed any six-consecutive-month period of employment, are eligible to participate in the Plan. A Participant who chooses not to enroll in the Plan when they are first eligible may elect to participate at a later date, in accordance with the terms of the Plan. EMPLOYEE CONTRIBUTIONS Participants may contribute in 1% increments up to 6% of eligible compensation as either basic before-tax or basic after-tax contributions to the Plan, and may contribute an additional 9% of eligible compensation as either additional before-tax or additional after-tax contributions to the Plan, not to exceed a total aggregate annual contribution to the Plan of greater than 15% of eligible compensation. The maximum before-tax contribution allowed by the Internal Revenue Code of 1986, as amended (the "Code"), for 1997 was $9,500. EMPLOYER MATCHING CONTRIBUTIONS The Company matches 100% of the first 3% and 50% of the next 3% of the Participant's basic before-tax or basic after-tax contributions, but not both. Employer matching contributions are invested in Policy Management Systems Corporation common stock. ALLOCATIONS Participant's accounts are credited with the actual income derived from the investments in such accounts and with the actual expenses related to such accounts. INVESTMENT ELECTIONS Each Participant is required to submit an election form to the Plan Administrator designating the allocation of the Participant's contributions among the Plan's investment funds in multiples of 5%. In addition, Participants may change the investment of contributions and may move their vested balances among investment funds by phone at specified intervals during the year. In addition to the contributions specified above, Participants who receive a qualified distribution under section 401(a) of the Code, from any other tax qualified plan, may have all or part of such distribution transferred into the Plan. Such rollover contributions are subject to tax regulations imposed by the Code. VESTING A Participant is always 100% vested in his or her before-tax contribution accounts, after-tax contribution accounts and rollover accounts. A Participant will become fully vested in his employer matching contribution account when the first of the following occurs: the Participant obtains five years of credited service; reaches normal retirement date; becomes permanently disabled; or becomes deceased. FORFEITURE ALLOCATIONS All Participant forfeitures are used to reduce future employer matching contributions to the Plan. BENEFIT PAYMENTS The Participant's after-tax contributions may be withdrawn at any time upon written request of the Participant. In addition, a Participant may withdraw all or any part of his or her vested employer matching contributions on his or her basic after-tax contributions, but only to the extent that such contributions have been in the Plan for at least two full Plan years after the Plan year in which such contributions were made. LOANS Participants may apply for loans greater than $1,000 from the Plan, collateralized by their account balances and repaid through payroll deduction generally subject to the following terms: 1) The total loans of any Participant at any point in time shall not exceed the lesser of (i) 50% of the Participant's vested Account balance, or (ii) $50,000 adjusted on the volume of loans outstanding to the Participant during the previous one-year period. 2) Loans may not be made in such a manner as to favor highly compensated employees, officers or shareholders. 3) No Participant shall be permitted to have more than one loan from the Plan issued and outstanding at any time, and no Participant shall be issued a new loan within six months of repayment of a Plan loan. 4) Interest charged on loans is determined by the Plan's Administrative Committee at a rate commensurate with interest rates charged for similar loans under general market conditions. 5) The length and terms of repayment may not exceed 5 years, unless the purpose of the loan is for the purchase of the Participant's principal residence, in which case the loan term may be extended to ten years. 6) All amounts repaid are credited to the Participant's account. ADMINISTRATIVE EXPENSES Administrative expenses of the Plan may be paid out of Plan assets if not paid by the Company. Administrative expenses paid by the Plan for the years ended December 31, 1997 and 1996 were $389,128 and $388,278, respectively. 3. SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING The accompanying financial statements have been prepared on the accrual basis in accordance with generally accepted accounting principles. The preparation of financial statements in conformity with generally accepted accounting principles may require management to make estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of additions to and deductions from net assets available for plan benefits during the reporting period. Actual results could differ from those estimates. ACCOUNTING FOR BENEFIT DISTRIBUTIONS In accordance with guidance issued by the American Institute of Certified Public Accountants in 1993, the Plan accounts for distributions such that all amounts elected to be withdrawn and distributed from the Plan by Participants are not recorded as a liability in the Statement of Net Assets Available for Plan Benefits. As of December 31, 1997 and 1996, $212,012 and $360,819 have been allocated to accounts of persons who have withdrawn from participation in the earnings and operations of the Plan, but for which disbursement of those funds from the Plan has not yet been made. The following is a reconciliation to the amounts reported on Form 5500:
1997 1996 ------------- ------------ Net assets available for plan benefits as stated in the financial statements . . . . . . . . . . $118,273,419 $91,432,150 Less: Distributions payable . . . . . . . . . . . (212,012) (360,819) ------------- ------------ Net assets available for plan benefits per Form 5500 $118,061,407 $91,071,331 ============= ============
In addition, the financial statements differ from the Form 5500 by the same amount for distributions on the Statement of Changes in Net Assets. INVESTMENTS The Plan invests in open-ended funds managed by either Fidelity Investments, First Union National Bank, Smith Barney, Evergreen, or Putnam with the exception of the PMSC Stock Fund and Forfeiture Fund. Each fund is valued at quoted market prices to determine a current fund value. Investments in securities for which exchange quotations are readily available are valued at the last sale price, or, if no sale, at the closing bid price. Debt securities are valued in the same manner or in some other manner, if, in the opinion of the Board of Trustees, such other manner would more accurately reflect the fair value of such debt securities. Short-term investments (consisting primarily of money-market funds) are valued either at amortized cost or original cost plus accrued interest, both of which approximate market value. The Plan presents in the statement of changes in net assets available for plan benefits the net appreciation (depreciation) in the fair value of its investments which consists of the realized gains or losses and the unrealized appreciation (depreciation) on those investments. 4. TAX STATUS The Internal Revenue Service has determined and informed the Company by letter dated November 1996, that the Plan is designed in accordance with Sections 401(k) and 401(a) of the Code. The Plan administrator believes that the Plan is written and is currently being operated in compliance with the applicable requirements of the Code. The Plan is exempt from federal income taxes under section 501(a) of the Code. 5. TERMINATION OF PLAN The Company expects and intends to continue the Plan in force indefinitely, but has reserved the right to amend or terminate the Plan as necessary. If the Plan were to be terminated, Participants would become fully vested and all assets of the Plan would be distributed to the individual Participants based upon the vested balances in their individual accounts at the date of termination. 6. RELATED PARTY TRANSACTIONS The Plan purchases, on behalf of Participants, shares of the Company's common stock in accordance with individual Participant's investment elections. During the Plan year ended December 31, 1997, the Plan purchased 127,114 shares at an aggregate cost of $6,286,648 and sold 57,750 shares for aggregate proceeds of $3,006,716 and realized gains of $347,647. During the Plan year ended December 31, 1996, the Plan purchased 109,549 shares at an aggregate cost of $4,571,197 and sold 45,586 shares for aggregate proceeds of $2,084,743 and realized losses of $93,135. The Plan also had 337,594 and 271,701 shares of the Company's common stock with a fair value of $23,484,051 and $12,532,208 at December 31, 1997 and 1996, respectively. 7. SECURITIES SETTLEMENT In December 1994, the Company reached an agreement, which was subsequently approved on May 26, 1995, by the United Stated District Court for the District of South Carolina, to settle its shareholder class action. The Plan, as an eligible shareholder, received $239,366 as its portion of the settlement in November 1996. The proceeds were received by the PMSC Stock Fund, invested in PMSC stock and allocated on a pro rata basis to eligible participants. SUPPLEMENTAL SCHEDULES
POLICY MANAGEMENT SYSTEMS CORPORATION 401(K) RETIREMENT SAVINGS PLAN FORM 5500, ITEM 27(A)-SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1997 Current Identity of Issue Description of Investment Cost Value - ----------------------- ---------------------------------- ----------- ----------- Loan 3,065,511 units participant loans Fund bearing interest rates from 7.00% to 12.25% with varying maturities from 18 to 360 months $ 3,065,511 $ 3,065,511 Fidelity Retirement 17,586,013 units Fidelity Government Money Market Money Market 17,586,013 17,586,013 Fidelity 1,260,993 units Fidelity Puritan Fund Puritan Fund 20,863,547 24,438,043 28 units Valiant General Fund #62 28 28 Fidelity 317,080 units Fidelity Magellan Fund Magellan Fund 24,784,804 30,208,172 3 units Valiant General Fund #62 3 3 Evergreen Short- 351,554 units Evergreen Intermediate Bond Fund Short-Intermediate Bond Fund 3,527,300 3,469,841 1 unit Valiant General Fund #62 1 1 PMSC 334,429 shares Policy Management Stock Fund Systems Corporation Common Stock* 15,406,212 23,263,911 388 units Valiant General Fund #62 388 388 Forfeiture 3,165 shares Policy Management Account Systems Corporation Common Stock* 143,977 220,140 192 units Valiant General Fund #62 192 192 Continued on next page
POLICY MANAGEMENT SYSTEMS CORPORATION 401(K) RETIREMENT SAVINGS PLAN FORM 5500, ITEM 27(A)-SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1997 (CONTINUED) Current Identity of Issue Description of Investment Cost Value - ------------------------------ ------------------------------ ---------- ---------- Smith Barney 608,858 units Smith Barney Fundamental Value Fund Fundamental Value Fund $5,555,477 $6,271,240 9 units Valiant General Fund #62 9 9 Smith Barney 120,596 units Smith Barney International Equity Portfolio International Equity Portfolio 2,215,395 2,382,974 2 units Valiant General Fund #62 2 2 Evergreen Growth & 60,753 units Evergreen Income Fund Growth & Income Fund 1,676,525 1,722,951 3,045 units Valiant General Fund #62 3,045 3,045 Putnam OTC & 268,408 units Putnam OTC Emerging Growth Fund Emerging Growth Fund 4,067,874 4,324,049 1 unit Valiant General Fund #62 1 1 First Union's Enhanced 22,501 units First Union Stock Market Fund Enhance Stock Market Fund 1,239,272 1,294,212 1 unit Valiant General Fund #62 1 1 * Indicates party-in-interest to the Plan. Note: The Valiant General Fund #62 represents funds held in a money market account for the purpose of paying disbursements related to the purchasing and selling of investments.
POLICY MANAGEMENT SYSTEMS CORPORATION 401(K) RETIREMENT SAVINGS PLAN FORM 5500, ITEM 27(D) - SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1997 SINGLE TRANSACTIONS EXCEEDING 5% OF NET ASSETS There were no single transactions exceeding 5% of Net Assets for 1997.
SERIES OF TRANSACTIONS EXCEEDING 5% OF NET ASSETS (EXCLUSIVE OF THE ABOVE TRANSACTIONS) Value of Identity Asset on of Party Description of Number of Selling Cost of Transaction Net Gain Involved Assets Transactions Price Asset Date (Loss) - ----------------- -------------- ------------ ---------- ----------- ------------ ---------- Fidelity Retirement Money Government Market Money Market Shares 52 $ 2,065,728 $ 2,065,728 $ Fidelity Retirement Money Government Market Money Market Shares 45 3,527,275 3,527,275 3,527,275 0 Fidelity Puritan Mutual Fund Mutual Shares 58 5,342,232 5,311,467 Fidelity Puritan Mutual Fund Mutual Shares 34 1,256,295 1,102,255 1,243,972 154,040 Fidelity Magellan Mutual Fund Mutual Shares 53 5,983,241 5,959,534 Fidelity Magellan Mutual Fund Mutual Shares 39 3,928,321 3,365,339 3,903,046 562,982 PMSC PMSC Common Stock Stock 47 6,286,648 6,229,322 PMSC PMSC Common Stock Stock 55 3,006,716 2,593,117 2,980,155 413,599 Smith Barney Equity Fund Equities Shares 18 640,725 622,943 Smith Barney Equity Fund Equities Shares 22 4,759,984 5,176,745 4,777,530 (416,761) Valiant General Money Market Fund #62 Shares * 34,460,437 34,460,437 Valiant General Money Market Fund #62 Shares * 34,636,027 34,636,027 34,636,027 0 *Omitted from schedule by Trustee.
EX-23 4 CONSENT OF INDEPENDENT ACCOUNTANTS We consent to the incorporation by reference in the registration statements of Policy Management Systems Corporation on Form S-8 (Nos. 33-59553, 33-59555 and 33-59575) of our report dated June 15, 1998 on our audits of the financial statements of the Policy Management Systems Corporation 401(k) Retirement Savings Plan as of December 31, 1997 and 1996 and for the years then ended, which report is included in this Annual Report on Form 11-K. Coopers & Lybrand L.L.P. Atlanta, Georgia June 29, 1998 -----END PRIVACY-ENHANCED MESSAGE-----