-----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, KHZUIA4WydvlBkw7JYAITpHwH22/HrZXfZzwKpsmwPxOOq0CXsVXqPdPGardCLQT cU+3b6xhUwItMPiHwR3hYQ== 0000804753-99-000112.txt : 19990701 0000804753-99-000112.hdr.sgml : 19990701 ACCESSION NUMBER: 0000804753-99-000112 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990630 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CERNER CORP /MO/ CENTRAL INDEX KEY: 0000804753 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 431196944 STATE OF INCORPORATION: DE FISCAL YEAR END: 1230 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 000-15386 FILM NUMBER: 99655964 BUSINESS ADDRESS: STREET 1: 2800 ROCKCREEK PKWY-STE 601 CITY: KANSAS CITY STATE: MO ZIP: 64117 BUSINESS PHONE: 8162211024 MAIL ADDRESS: STREET 1: 2800 ROCKCREEK PKWY STREET 2: DROP 1624 CITY: KANSAS CITY STATE: MO ZIP: 64117 11-K 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 11-K (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year end December 31, 1999 ------------------ OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] For the transition period from ________ to ________ Commission file number 0-15386 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: Cerner Corporation Foundations Retirement Plan 2800 Rockcreek Parkway Kansas City, MO 64117 B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: CERNER CORPORATION FOUNDATIONS RETIREMENT PLAN Financial Statements and Schedules December 31, 1998 and 1997 (With Independent Auditors' Report Thereon) Independent Auditors' Report The Board of Directors Cerner Corporation: We have audited the accompanying statements of net assets available for participants of the Cerner Corporation Foundations Retirement Plan as of December 31, 1998 and 1997 and the related statements of changes in net assets available for participants 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 participants of the Cerner Corporation Foundations Retirement Plan as of December 31, 1998 and 1997 and the changes in net assets available for participants for the years then ended, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary 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 statements of net assets available for participants and the statements of changes in net assets available for participants is presented for purposes of additional analysis rather than to present the net assets available for participants and changes in net assets available for participants of each fund. The supplemental schedules and fund information have been subjected to the auditing procedures applied in the audits 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. KPMG, LLP June 15, 1999 1 CERNER CORPORATION FOUNDATIONS RETIREMENT PLAN Statement of Net Assets Available for Participants December 31, 1998
_________________________________________________________________________________________________________________________ Fund A Fund B Fund C Fund D Fund E Fund F Fund G _________________________________________________________________________________________________________________________ Investments at fair value: Common stock of Cerner Corporation, 1,276,229 shares (cost $16,241,387) $ 34,139,126 - - - - - - Twentieth Century Ultra Fund, 321,455 shares (cost $9,141,810) - 10,739,820 - - - - - Twentieth Century Growth Fund, 261,509 shares (cost $6,424,060) - - 7,102,584 - - - - Twentieth Century Select Fund, 91,878 shares (cost $4,013,307) - - - 4,354,084 - - - American Century Balanced Fund, 116,479 shares (cost $2,101,482) - - - - 2,151,364 - - Benham Preservation Trust, 1,556,636 shares (cost $1,556,636) - - - - - 1,556,636 - American Century Value Fund, 46,347 shares (cost $311,147) - - - - - - 280,397 __________________________________________________________________________________________________________________________ Total investments 34,139,126 10,739,820 7,102,584 4,354,084 2,151,364 1,556,636 280,397 Cash 2,662 - - - - - - Contributions receivable: Associates 112,205 96,785 69,083 42,096 22,787 9,627 8,784 Employer 73,910 - - - - - - __________________________________________________________________________________________________________________________ Net assets available for participants $ 34,327,903 10,836,605 7,171,667 4,396,180 2,174,151 1,566,263 289,181 =========== ========== ========= ========= ========= ========= =======
__________________________________________________________________________________________ Fund H Fund I Loans Total ________________________________________________________________________________________ Investments at fair value: Common stock of Cerner Corporation, 1,276,229 shares (cost $16,241,387) - - - 34,139,126 Twentieth Century Ultra Fund, 321,455 shares (cost $9,141,810) - - - 10,739,820 Twentieth Century Growth Fund, 261,509 shares (cost $6,424,060) - - - 7,102,584 Twentieth Century Select Fund, 91,878 shares (cost $4,013,307) - - - 4,354,084 American Century Balanced Fund, 116,479 shares (cost $2,101,482) - - - 2,151,364 Benham Preservation Trust, 1,556,636 shares (cost $1,556,636) - - - 1,556,636 American Century Value Fund, 46,347 shares (cost $311,147) - - - 280,397 Twentieth Century International Growth Fund, 18,439 shares (cost $174,860) 176,646 - - 176,646 Charles B. Schwab Personal Choice Account, 271,677 shares (cost $271,677) - 271,677 - 271,677 Loans to participants, at cost - - 429,720 429,720 ________________________________________________________________________________________ Total investments 176,646 271,677 429,720 61,202,054 Cash - - - 2,662 Contributions receivable: Associates 8,180 - - 369,547 Employer - - - 73,910 ________________________________________________________________________________________ Net assets available for participants $ 184,826 271,677 429,720 61,648,173 ======== ======= ======= ==========
See accompanying notes to financial statements. 2 CERNER CORPORATION FOUNDATIONS RETIREMENT PLAN Statements of Net Assets Available for Participants December 31, 1997
Fund A Fund B Fund C Fund D Fund E Fund F Loans Total ___________________________________________________________________________________________________________________________________ Investments at fair value: Common stock of Cerner Corporation, 1,183,773 shares (cost $12,722,524) $ 25,007,205 - - - - - - 25,007,205 Twentieth Century Ultra Fund, 234,686 shares (cost $6,294,325) - 6,406,922 - - - - - 6,406,922 Twentieth Century Growth Fund, 162,194 shares (cost $3,701,215) - - 3,894,288 - - - - 3,894,288 Twentieth Century Select Fund, 57,859 shares (cost $2,365,005) - - - 2,464,266 - - - 2,464,266 American Century Balanced Fund, 83,541 shares (cost $1,449,721) - - - - 1,515,435 - - 1,515,435 Benham Capital Preservation Trust, 1,055,090 shares (cost $1,055,090) - - - - - 1,055,090 - 1,055,090 Loans to participants, at cost - - - - - - 325,261 325,261 _________________________________________________________________________________________________________________________________ Total investments 25,007,205 6,406,922 3,894,288 2,464,226 1,515,435 1,055,090 325,261 40,668,427 Cash 96,045 - - - - - - 96,045 Contributions receivable: Associates 77,206 58,261 35,421 23,223 11,580 7,174 - 212,865 Employer 42,573 - - - - - - 42,573 _________________________________________________________________________________________________________________________________ Net assets available for participants $ 25,223,029 6,465,183 3,929,709 2,487,449 1,527,015 1,062,264 325,261 41,019,910 ========== ========= ========= ========= ========= ========= ======= ========== See accompanying notes to financial statements.
CERNER CORPORATION FOUNDATIONS RETIREMENT PLAN Statements of Changes in Net Assets Available for Participants Year ended December 31, 1998
_________________________________________________________________________________________________________________________ Fund A Fund B Fund C Fund D Fund E Fund F Fund G _________________________________________________________________________________________________________________________ Additions to net assets attributed to: Net appreciation (depreciation) in fair value of investments $ 6,977,299 1,601,533 546,228 304,801 15,638 - (30,816) Interest and dividends 2,458 907,512 1,155,797 728,861 257,078 78,549 43,831 Interfund transfers (88,582) (54,141) 51,432 50,326 (24,598) (321,339) 103,264 Employer contributions (note 2) 1,026,321 - - - - - - Associates' contributions (note 2) 3,209,961 2,719,019 1,796,002 1,124,564 628,814 981,446 199,184 Loan repayments 70,041 37,202 27,912 7,166 8,940 1,423 299 __________________________________________________________________________________________________________________________ Total additions (deductions) 11,197,498 5,211,125 3,577,371 2,215,718 885,872 740,079 315,762 __________________________________________________________________________________________________________________________ Deductions from net assets attributed to: Distributions to associates (note 3) (2,045,232) (768,522) (295,460) (278,506) (235,648) (198,596) (25,830) Loans to participants (46,919) (70,589) (39,561) (28,017) (2,990) (37,305) (689) Investment expenses (473) (592) (392) (464) (98) (179) (62) __________________________________________________________________________________________________________________________ Total (deductions) additions (2,092,624) (839,703) (335,413) (306,987) (238,736) (236,080) (26,581) __________________________________________________________________________________________________________________________ Net increase 9,104,874 4,371,422 3,241,958 1,908,731 647,136 503,999 289,181 Net assets available for participants: Beginning of year 25,223,029 6,465,183 3,929,709 2,487,449 1,527,015 1,062,264 - __________________________________________________________________________________________________________________________ End of year $ 34,327,903 10,836,605 7,171,667 4,396,180 2,174,151 1,566,263 289,181 =========== ========== ========= ========= ========= ========= =======
______________________________________________________________________________________ Fund H Fund I Loans Total _____________________________________________________________________________________ Additions to net assets attributed to: Net appreciation (depreciation) in fair value of investments $ 1,014 - - 9,415,697 Interest and dividends 2,845 42,058 32,414 3,251,403 Interfund transfers 54,019 229,619 - - Employer contributions (note 2) - - - 1,026,321 Associates' contributions (note 2) 132,367 - - 10,791,357 Loan repayments 424 - (153,407) - ______________________________________________________________________________________ Total additions (deductions) 190,669 271,677 (120,993) 24,484,778 ______________________________________________________________________________________ Deductions from net assets attributed to: Distributions to associates (note 3) (2,370) - (4,091) (3,854,255) Loans to participants (3,473) - 229,543 - Investment expenses - - - (2,260) ______________________________________________________________________________________ Total (deductions) additions (5,843) - 225,452 (3,856,515) ______________________________________________________________________________________ Net increase 184,826 271,677 104,459 20,628,263 Net assets available for participants: Beginning of year - - 325,261 41,019,910 ______________________________________________________________________________________ End of year $ 184,826 271,677 429,720 61,648,173 ========= ======= ======= ==========
See accompanying notes to financial statements. 4 CERNER CORPORATION FOUNDATIONS RETIREMENT PLAN Statement of Changes in Net Assets Available for Participants Year ended December 31, 1997 __________________________________________________________________________________________________________________________________ Fund A Fund B Fund C Fund D Fund E Fund F Loans Total __________________________________________________________________________________________________________________________________ Additions to net assets attributed to: Net appreciation (depreciation) in fair value of investments $ 6,448,871 (287,262) 188,217 123,294 42,868 - - 6,515,988 Interest and dividends 2,309 1,300,685 569,444 390,093 148,336 52,183 25,618 2,488,668 Interfund transfers 192,065 (105,418) (93,907) 43,729 1,650 (38,119) - - Employer contributions (note 2) 730,281 - - - - - - 730,281 Associates' contributions (note 2) 2,684,698 1,832,993 1,079,568 688,480 411,947 259,980 6,957,666 Loan repayments 64,596 23,188 13,762 9,062 1,965 266 (112,839) - __________________________________________________________________________________________________________________________________ Total additions (deductions) 10,122,820 2,764,186 1,757,084 1,254,658 606,766 274,310 (87,221) 16,692,603 __________________________________________________________________________________________________________________________________ Deductions from net assets attributed to: Distributions to associates (note 3) (1,009,580) (512,867) (323,325) (253,445) (97,000) (42,139) (31,107) (2,269,463) Loans to participants (82,752) (28,142) (24,511) (6,603) (3,000) (12,000) 157,008 - Investment expenses (672) (342) (149) (239) (133) (51) - (1,586) __________________________________________________________________________________________________________________________________ Total (deductions) additions (1,093,004) (541,351) (347,985) (260,287) (100,133) (54,190) 125,901 (2,271,049) __________________________________________________________________________________________________________________________________ Net increase 9,029,816 2,222,835 1,409,099 994,371 506,633 220,120 38,680 14,421,554 Net assets available for participants: Beginning of year 16,193,213 4,242,348 2,520,610 1,493,078 1,020,382 842,144 286,581 26,598,356 __________________________________________________________________________________________________________________________________ End of year $ 25,223,029 6,465,183 3,929,709 2,487,449 1,527,015 1,062,264 325,261 41,019,910 ========== ========= ========= ========= ========= ========= ======= ========== See accompanying notes to financial statements.
5 CERNER CORPORATION FOUNDATIONS RETIREMENT PLAN Notes to Financial Statements December 31, 1998 and 1997 (1) Summary of Significant Accounting Policies General The following brief description of the Cerner Corporation Foundations Retirement Plan (the Plan) is provided for general information purposes only. Participants should refer to the Plan Agreement for more complete information. The Plan was adopted by the Board of Directors of Cerner Corporation (the Company or Employer) effective November 1, 1987. The Plan is administered by a third-party administrator. All full-time associates of the Company are eligible for participation in the Plan after attaining age eighteen. Basis of Presentation The accompanying financial statements have been prepared on the accrual basis in conformity with generally accepted accounting principles and present the Plan's net assets available for participants and changes in those net assets. Expenses Substantially all costs and expenses incurred in administering the Plan are paid by the Company. Expenses related to issuance of loans to participants are charged to the participant obtaining the loan. Investments The Plan's investments and earnings thereon are held in a bank trust account. The fair values of investments are based principally on quotations from national securities exchanges. Purchases and sales of securities are recorded on a trade-date basis. Loans to Participants At the discretion of the Company, loans may be made to participants in an amount up to 50% of the participant's self- directed funds balance. The loan period may not exceed ten years and the interest rate is prime plus 1%. Use of Estimates The Plan utilizes a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with generally accepted accounting principles. Actual results could differ from those estimates. 6 (Continued) CERNER CORPORATION FOUNDATIONS RETIREMENT PLAN Notes to Financial Statements December 31, 1998 and 1997 (2) Contributions Participating associates may elect to make pretax contributions from 1% to 15% of their compensation to the Plan, subject to annual limits imposed by the Internal Revenue Service. Participants may direct contributions into nine different investment funds. These funds include Fund A (limited to investments in the common stock of the Company), Fund B (Twentieth Century Ultra Investors), Fund C (Twentieth Century Growth Investors), Fund D (Twentieth Century Select Investors), Fund E (American Century Balanced), Fund F (Benham Capital Preservation Fund which primarily invests in short-term investments and guaranteed insurance contracts), Fund G (American Century Value Fund), Fund H (Twentieth Century International Growth Fund), and Fund I (Charles B. Schwab Personal Choice Account). The Company will make matching contributions in an amount equal to 20% of the participant's annual contribution, not to exceed the lesser of 2% of the participant's compensation or $600 per participant. All Company contributions are directed to Fund A. (3) Distributions Upon normal retirement, retirement for permanent disability, or death, a participant is entitled to the full value of the assets attributable to his or her contributions and Company contributions made on his or her behalf. Upon termination for any other reason, a participant is entitled to 100% of his or her contributions and the vested portion of Company contributions. Company contributions vest 20% after three years of service and 20% for each additional year of service until a participant is 100% vested upon completing seven years of service. Forfeitures of nonvested contributions are allocated to all Plan participants as of the Plan year-end on a pro rata basis according to individual participant annual earnings. Participants receive distributions from Fund A in shares of the Company's common stock, except that cash is distributed for fractional shares. Participants may also elect to receive cash for distributions with a value less than $1,000. During the years ended December 31, 1998 and 1997, 79,572 shares and 38,338 shares of the Company's common stock, respectively, were distributed to withdrawing participants. Participants receive distributions from all other funds in cash. (4) Tax Status The Plan received a favorable determination letter, dated August 25, 1994, from the Internal Revenue Service confirming the tax-exempt status of the Plan under Section 401(a) of the Internal Revenue Code. The Company is not aware of any activity or transactions that may adversely affect the qualified status of the Plan. 7 (Continued) CERNER CORPORATION FOUNDATIONS RETIREMENT PLAN Notes to Financial Statements December 31, 1998 and 1997 (5) Plan Participants The following summarizes the number of associate participants by fund as of December 31, 1998: Cerner stock account 2,348 Twentieth Century Mutual Funds: Ultra Investors 1,553 Growth Investors 1,298 Select Investors 922 International Growth Fund 198 Benham Preservation Fund 418 American Century Balanced Fund 584 American Century Value Fund 208 Charles B. Schwab Personal Choice Account 18 =====
Because associates may invest in more than one fund, the number of associate participants above exceeds the total number of associate participants. 8 CERNER CORPORATION Schedule 1 FOUNDATIONS RETIREMENT PLAN Item 27(a) - Schedule of Assets Held for Investment Purposes December 31, 1998
__________________________________________________________________________________________________________ Asset Description Cost Fair Value __________________________________________________________________________________________________________ Cerner Corporation 1,276,229 shares of common stock $ 16,241,387 34,139,126 Twentieth Century Ultra Investors Mutual Fund, 321,455 shares 9,141,810 10,739,820 Twentieth Century Growth Investors Mutual Fund, 261,509 shares 6,424,060 7,102,584 Twentieth Century Select Investors Mutual Fund, 91,878 shares 4,013,307 4,354,084 Twentieth Century Balanced Investors Mutual Fund, 116,479 shares 2,101,482 2,151,364 Benham 1,556,636 units of participation in a pooled fund 1,556,636 1,556,636 American Century Value Mutual Fund, 46,347 shares 311,147 280,397 Loans to participants Loans to participants (bearing interest from 7% to 10%) 429,720 429,720 Twentieth Century International Growth Mutual Fund, 18,439 shares 174,860 176,646 Charles B. Schwab Schwab Personal Choice Account, 271,677 shares 271,677 271,677 __________________________________________________________________________________________________________ $ 40,666,086 61,202,054 =========== ========== See accompanying independent auditors' report.
9 CERNER CORPORATION Schedule 2 FOUNDATIONS RETIREMENT PLAN Item 27(d) - Schedule of Reportable Transactions Year ended December 31, 1998 _____________________________________________________________________________________________________ Identity of party Description Purchase Selling Original Net gain involved of asset price price cost (loss) _____________________________________________________________________________________________________ Cerner Corporation Common stock $ 4,640,928 - 4,640,928 - Cerner Corporation Common stock - 2,523,029 1,158,789 1,364,240 American Century Ultra fund 3,989,550 - 3,989,550 - American Century Growth fund 3,240,907 - 3,240,907 - American Century Select fund 2,443,395 - 2,443,395 - ========= ========= ========= =========
Transactions involving Cerner Corporation common stock are party-in-interest transactions. NOTES: A reportable transaction is defined by the Department of Labor as: - A single transaction in excess of 5% of the fair value of Plan assets. - A series of transactions with or in conjunction with the same person, involving property other than securities, which amounts in the aggregate to more than 5% of the fair value of the Plan assets. - A series of transactions with respect to securities of the same issue which amounts in the aggregate to more than 5% of the fair value of the total Plan assets. - Any transaction with or in conjunction with a person if a prior or subsequent single transaction has occurred with respect to securities with or in conjunction with the same person in an amount in excess of 5% of the fair value of Plan assets. A reportable transaction is identified by comparing the fair value of the transaction at the transaction date with the fair value of the Plan assets at the beginning of the year ended December 31, 1998. See accompanying independent auditors' report. 11 Independent Auditors' Consent The Board of Directors Cerner Corporation: We consent to incorporation by reference in the registration statements (No. 33-56868, No. 33-55082, No. 33-41580, No. 33-39777, No. 33-39776, No. 33-20155, and No. 33-15156) on Form S-8 of Cerner Corporation of our report dated June 15, 1999, relating to the statements of net assets available for participants of Cerner Corporation Foundations Retirement Plan as of December 31, 1998 and 1997, and the related statements of changes in net assets available for participants for the years then ended and the related supplemental schedules of assets held for investment purposes and reportable transactions, which report is included herein. KPMG, LLP Kansas City, Missouri June 29, 1999 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. FOUNDATIONS RETIREMENT PLAN Dated: __6/29/99______________ By: _\s\David M. Evans_____ -----END PRIVACY-ENHANCED MESSAGE-----