-----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, UkPYswm3gu2Xqq387S45s7K/FtZaIdfmwcloeALYEz907+YcmsIf06eSVp+v0VnT BSet/vRDfJ/x/p4Gt0WQWQ== 0000892569-99-001802.txt : 19990630 0000892569-99-001802.hdr.sgml : 19990630 ACCESSION NUMBER: 0000892569-99-001802 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990629 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IXC COMMUNICATIONS INC CENTRAL INDEX KEY: 0001009532 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 752644120 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 000-20803 FILM NUMBER: 99655183 BUSINESS ADDRESS: STREET 1: 1122 CAPITAL OF TEXAS HGWY S STREET 2: STE 200 CITY: AUSTIN STATE: TX ZIP: 78746 BUSINESS PHONE: 5123281112 MAIL ADDRESS: STREET 1: 5000 PLAZA ON THE LAKE STREET 2: SUITE 200 CITY: AUSTIN STATE: TX ZIP: 79746-1050 11-K 1 FORM 11-K DATED DECEMBER 31, 1998 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 --------------- FORM 11-K --------------- (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACTS OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 1998 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACTS OF 1934 FOR THE TRANSITION PERIOD FROM ____________ TO _____________ . A. FULL TITLE OF THE PLAN AND THE ADDRESS OF THE PLAN, IF DIFFERENT FROM THAT OF THE ISSUER NAMED BELOW: IXC COMMUNICATIONS, INC. 401(K) PLAN B. NAME OF ISSUER OF THE SECURITIES HELD PURSUANT TO THE PLAN AND THE ADDRESS OF ITS PRINCIPAL EXECUTIVE OFFICE: IXC COMMUNICATIONS, INC. 1122 CAPITAL OF TEXAS HIGHWAY SOUTH, AUSTIN, TEXAS 78746-6426 (512) 328-1112 2 IXC COMMUNICATIONS, INC. 401(K) PLAN AUDITED FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES FOR THE FISCAL YEAR ENDED DECEMBER 31, 1998 TABLE OF CONTENTS Report of Independent Auditors...............................................1 Financial Statements Statements of Net Assets Available for Benefits..............................3 Statement of Changes in Net Assets Available for Benefits with Fund Information............................................4 Notes to Financial Statements................................................8 Supplemental Schedules Item 27a - Schedule of Assets Held for Investment Purposes..................13 Item 27b - Schedule of Loans or Fixed Income Obligations....................14 Item 27d - Schedule of Reportable Transactions..............................15 Consent of Independent Auditors.............................................18
3 Report of Independent Auditors The Trustees IXC Communications, Inc. 401(k) Plan We have audited the accompanying statements of net assets available for benefits of IXC Communications, Inc. 401(k) Plan (the Plan) as of December 31, 1998 and 1997 and the related statement of changes in net assets available for benefits for the year ended December 31, 1998. 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 benefits of the Plan at December 31, 1998 and 1997 and the changes in net assets available for benefits for the year ended December 31, 1998 in conformity with generally accepted accounting principles. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplemental schedules of assets held for investment purposes as of December 31, 1998, loans or fixed income obligations and reportable transactions for the year then ended, are presented for purposes 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. 4 These supplemental schedules are the responsibility of the Plan's management. The Fund information in the statement of changes in net assets available for benefits is presented for purposes of additional analysis rather than to present the changes in net assets available for benefits of each fund. The supplemental schedules and Fund information have been subjected to auditing procedures applied in our 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. The schedule of assets held for investment purposes and the schedule of reportable transactions that accompany the Plan's financial statements do not disclose the historical cost of plan investments or the net gain or loss on sale transactions. Disclosure of this information is required by the Department of Labor's Rules and Regulations for Reporting and Disclosures under the Employment Retirement Income Security Act of 1974. Ernst & Young LLP Austin, Texas June 23, 1999 2 5 IXC Communications, Inc. 401(k) Plan Statements of Net Assets Available for Benefits
DECEMBER 31 1998 1997 ---------------------------- ASSETS Investments at fair value: The American Funds Group: Money market accounts $ -- $ 74,639 Cash Management Trust of America -- 351,337 U.S. Government Securities Fund -- 291,830 Income Fund of America -- 1,774,848 Bond Fund of America -- 326,276 Fundamental Investors -- 3,438,129 New Perspective Fund -- 1,908,779 Smallcap World Fund -- 1,445,057 Growth Fund of America -- 700,376 Morgan Stanley Dean Witter Group: Enterprise Fund 1,403,912 -- Emerging Growth Fund 1,159,071 -- Corporate Bond Fund 642,340 -- Reserve Fund 1,074,330 -- Equity Income Fund 1,746,126 -- Real Estate Securities Fund 133,799 -- American Value Fund 1,579,509 -- Emerging Markets Fund 72,348 -- International Magnum Fund 1,415,263 -- Value Fund 2,363,134 -- Common stock of IXC Communications, Inc. 834,491 -- Participant loans 477,021 587,210 ---------------------------- Total investments 12,901,344 10,898,481 Cash 38,936 -- Employer contributions receivable 2,458,919 716,552 Employee contributions receivable 330,399 85,882 ---------------------------- Net assets available for benefits $15,729,598 $11,700,915 ============================
See accompanying notes. 3 6 IXC Communications, Inc. 401(k) Plan Statement of Changes in Net Assets Available for Benefits with Fund Information Year ended December 31, 1998
Participant Directed ----------------------------------------------------------- Cash U.S. Management Government Income Bond Trust of Securities Fund of Fund of America Fund America America ----------------------------------------------------------- Additions: Contributions: Employees $ 6,439 $ 11,024 $ 31,426 $ 16,351 Employer -- -- -- -- ----------------------------------------------------------- 6,439 11,024 31,426 16,351 Investment income: Interest and dividends -- -- -- -- Net appreciation in fair value of investments 3,494 3,250 111,296 7,774 ----------------------------------------------------------- Total additions 9,933 14,274 142,722 24,125 Deductions: Benefit payments (500) -- (16,766) (156) Interfund transfers (360,770) (306,104) (1,731,153) (350,245) ----------------------------------------------------------- Net increase (decrease) in net assets available for benefits (351,337) (291,830) (1,605,197) (326,276) Net assets available for benefits at beginning of year 351,337 291,830 1,605,197 326,276 ----------------------------------------------------------- Net assets available for benefits at end of year $ -- $ -- $ -- $ -- ===========================================================================================================================
See accompanying notes. 4 7
Participant Directed - ---------------------------------------------------------------------------------------------------------------------------------- New Smallcap Fundamental Perspective World Growth Fund Enterprise Emerging Corporate Reserve Investors Fund Fund of America Fund Growth Fund Bond Fund Fund - ---------------------------------------------------------------------------------------------------------------------------------- $ 92,330 53,887 $ 52,946 $ 51,147 $ 206,804 $ 384,473 $ 67,365 $ 116,296 -- -- -- -- 203,387 299,673 77,135 337,156 - ---------------------------------------------------------------------------------------------------------------------------------- 92,330 53,887 52,946 51,147 410,191 684,146 144,500 453,452 -- -- -- -- 38,950 51,836 28,894 27,227 364,116 275,401 141,042 87,334 51,277 107,520 (176) (363) - ---------------------------------------------------------------------------------------------------------------------------------- 456,446 329,288 193,988 138,481 500,418 843,502 173,218 480,316 (17,160) (17,541) (18,673) (12,602) (98,034) (72,445) (164,568) (98,266) (3,686,578) (2,068,502) (1,469,359) (826,255) 1,001,528 388,014 633,690 692,280 - ---------------------------------------------------------------------------------------------------------------------------------- (3,247,292) (1,756,755) (1,294,044) (700,376) 1,403,912 1,159,071 642,340 1,074,330 3,247,292 1,756,755 1,294,044 700,376 -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------------- $ -- $ -- $ -- $ -- $ 1,403,912 $ 1,159,071 $ 642,340 $ 1,074,330 ==================================================================================================================================
5 8
Participant Directed - ----------------------------------------------------------------------------------------------------------------------------- Emerging IXC Equity Income Real Estate American Markets International Value Communications Fund Securities Fund Value Fund Fund Magnum Fund Fund Stock - ----------------------------------------------------------------------------------------------------------------------------- $ 137,395 $ 71,166 $ 255,126 $ 40,135 $ 98,345 $ 151,598 $ -- 137,290 64,225 206,475 34,395 87,972 127,625 -- - ----------------------------------------------------------------------------------------------------------------------------- 274,685 135,391 461,601 74,530 186,317 279,223 -- 104,430 1,839 82,468 38 40,223 54,250 -- (24,700) (5,077) (162,535) (2,941) (202,454) (423,103) 30,724 - ----------------------------------------------------------------------------------------------------------------------------- 354,415 132,153 381,534 71,627 24,086 (89,630) 30,724 (381,174) (311) (215,413) (7) (171,551) (484,605) (4,310) 1,772,885 1,957 1,413,388 728 1,562,728 2,937,369 808,077 - ----------------------------------------------------------------------------------------------------------------------------- 1,746,126 133,799 1,579,509 72,348 1,415,263 2,363,134 834,491 -- -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- $ 1,746,126 $ 133,799 $ 1,579,509 $ 72,348 $ 1,415,263 $ 2,363,134 $ 834,491 =============================================================================================================================
6 9
Participant Directed - ---------------- Participant Non-Participant Loans Directed Other Total - -------------------------------------------------------------------------- $ -- $ -- $ 405,327 $ 2,249,580 -- -- 1,186,640 2,761,973 - -------------------------------------------------------------------------- -- -- 1,591,967 5,011,553 20,498 -- -- 450,633 12,332 -- -- 374,211 - -------------------------------------------------------------------------- 32,830 -- 1,591,967 5,836,417 (33,652) -- -- (1,807,734) (109,367) (663,525) 359,214 -- - -------------------------------------------------------------------------- (110,189) (663,525) 1,951,181 4,028,683 587,210 663,525 877,073 11,700,915 - -------------------------------------------------------------------------- $ 477,021 $ -- $ 2,828,254 $ 15,729,598 ==========================================================================
7 10 IXC Communications, Inc. 401(k) Plan Notes to Financial Statements December 31, 1998 1. DESCRIPTION OF PLAN The IXC Carrier, Inc. 401(k) and Pension Plan and Trust became effective June 1, 1987. The Plan was the result of the restatement of the Communications Transmission, Inc. 401(k) Plan and Trust and the merger therein of the Communications Transmission, Inc. Money Purchase Pension Plan and Trust. On July 1, 1996 the Plan was restated and the name was changed to the IXC Communications, Inc. 401(k) Plan (the Plan). On April 1, 1998, the Plan assets were transferred from Capital Guardian Trust Company to Morgan Stanley Dean Witter, and the record keeper changed from BISYS Plan Services, Inc. to Morgan Stanley Dean Witter. The fund options also changed at that time. The following brief description of the Plan is provided for general purposes only. Participants should refer to the Plan agreement for more complete information. GENERAL The Plan is a defined contribution profit sharing plan covering substantially all employees of IXC Communications, Inc. and its subsidiaries (the Company). It is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA) and qualifies under Section 401(a) of the Internal Revenue Code, as amended. CONTRIBUTIONS Eligible employees may contribute to the Plan an elected portion of their eligible compensation, as defined in the Plan, up to the statutory annual deferral limit. Effective January 1, 1998, the employer matches 100% of participant contributions to the Plan up to the first 3% of eligible compensation of the employee. Employer profit sharing contributions in excess of the required matchings are permitted under the Plan and are made at the discretion of the Company. 8 11 IXC Communications, Inc. 401(k) Plan Notes to Financial Statements (continued) 1. DESCRIPTION OF PLAN (CONTINUED) ELIGIBILITY Employees were eligible for participation in the Plan after obtaining 18 years of age and one year of service, which is defined as 1,000 hours of service with the Company or any predecessor of the Company, as defined in the Plan. Effective April 1, 1998, every employee of the Company who has both attained age 20 -1/2 and completed 500 hours of service within six months is eligible to participate in the Plan. An employee may enter the Plan on January 1, April 1, July 1 or October 1, whichever occurs first after the employee satisfies the eligibility requirements. VESTING Each participant is fully vested in his/her contribution and shall become fully vested in his/her employer contribution account on his normal retirement date, death or disability (if prior to his termination for other reasons). Plan participants were 40% vested in employer contributions after two years of service and continued to vest 20% per year until they were fully vested. Effective April 1, 1998, participants are 20% vested in employer contributions upon one year of service and continue to vest 20% per year until they are fully vested. PAYMENT OF BENEFITS Participants are entitled to receive benefit payments at the normal retirement age of 65, in the event of the participant's death or disability, or in the event of termination under certain circumstances other than normal retirement, disability or death. Benefits may be paid in a lump-sum distribution or by an annuity. PLAN TERMINATION Although the Company has not expressed any intent to terminate the Plan, it reserves the right to do so at any time. Upon such termination, each participant becomes fully vested and all benefits shall be distributed to the participants or their beneficiaries. 9 12 IXC Communications, Inc. 401(k) Plan Notes to Financial Statements (continued) 1. DESCRIPTION OF PLAN (CONTINUED) PARTICIPANT ACCOUNTS Discretionary employer profit sharing contributions are allocated annually to participant accounts based upon the percentage of the individual participant's eligible compensation to total participants' eligible compensation. Investment earnings or losses are allocated among the participants' accounts based upon the percentage of the balance of each such account to the total balance of all such accounts within each investment option. PARTICIPANT LOANS Participants are allowed to borrow a maximum amount of the lesser of 50% of the participants vested account balance or $50,000. Loans are amortized over a maximum of 60 months and repayment is made through payroll deductions. The amount of the loan is deducted from the participant's investment accounts, thus the interest paid is earnings to the participant's individual plan account and the principal paid is returned to the current investment options selected by the participant. FORFEITURES Participant contribution forfeitures under the Plan are applied to the Company's matching contribution to the Plan for the Plan year in which the forfeitures occur. ADMINISTRATION The Plan is administered by trustees consisting of officers and employees of the Company. Administrative expenses of the Plan are paid by the Company. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The Plan's financial statements have been prepared on the accrual basis of accounting. 10 13 IXC Communications, Inc. 401(k) Plan Notes to Financial Statements (continued) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES VALUATION OF INVESTMENTS Investments are stated at fair value, which is determined based on quoted market prices in an active market. The investment in the money market fund is stated at cost, which approximates fair value. Participant loans are stated at cost which approximates fair value. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying schedules. Actual results could differ from those estimates. 3. INCOME TAX STATUS The Plan has received a determination letter from the Internal Revenue Service dated April 6, 1998, stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code (the "Code") and, therefore, the related trust is exempt from taxation. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification. The Company has indicated that it will take the necessary steps, if any, to maintain the Plan's qualified status. 4. YEAR 2000 ISSUE (UNAUDITED) The Company has determined that it will be necessary to take certain steps in order to ensure that the Plan's information systems are prepared to handle year 2000 dates. The Company has addressed internal systems that must be modified or replaced to function properly. Both internal and external resources are being utilized to replace or modify existing software applications, and test the software and equipment for the year 2000 modifications. Costs associated with modifying software and equipment are not estimated to be significant and will be paid by the Company. 11 14 IXC Communications, Inc. 401(k) Plan Notes to Financial Statements (continued) 4. YEAR 2000 ISSUE (UNAUDITED) (CONTINUED) Plan management established formal communications with its third party service providers to determine that they have developed plans to address their own year 2000 problems as they relate to the Plan's operations. All third party service providers have indicated that they will be year 2000 compliant by late 1999. If modifications of data processing systems of either the Plan, the Company, or its service providers are not completed timely, the year 2000 problem could have a material impact on the operations of the Plan. Plan management has not developed a contingency plan, because they are confident that all systems will be year 2000 ready. 12 15 Supplemental Schedules 16 IXC Communications, Inc. 401(k) Plan Item 27a - Schedule of Assets Held for Investment Purposes EIN: 74-2644120 Plan Number 002 December 31, 1998
Current Identity of Issue Description of Asset Cost Value - ---------------------------------------------------------------------------------------------------------------- The Morgan Stanley Dean Witter Group: Enterprise Fund Mutual Fund ** $ 1,403,912 68,052 shares Emerging Growth Fund Mutual Fund ** 1,159,071 24,057 shares Corporate Bond Fund Mutual Fund ** 642,340 90,090 shares Reserve Fund Money Market Fund ** 1,074,330 1,032,853 shares Equity Income Fund Mutual Fund ** 1,746,126 223,290 shares Real Estate Securities Fund Mutual Fund ** 133,799 11,554 shares American Value Fund Mutual Fund ** 1,579,509 78,857 shares Emerging Markets Fund Mutual Fund ** 72,348 10,410 shares International Magnum Fund Mutual Fund ** 1,415,263 109,285 shares Value Fund Mutual Fund ** 2,363,134 246,412 shares IXC Communications, Inc.* Company Stock ** 834,491 24,864 shares Participants Loans* 7.27%-9.5% Loans -- 477,021 ------------ $ 12,901,344 ============
* Parties-in-interest ** Historical cost not available 13 17 IXC Communications, Inc. 401(k) Plan Item 27b - Schedule of Loans or Fixed Income Obligations EIN: 74-2644120 Plan Number 002 For the year ended December 31, 1998
Unpaid Name & Address Amount of Total Total Balance at Principal Interest (Identity) Loan Principal Paid Interest Paid Year End Detail Description of Loan Overdue Overdue - ------------------------------------------------------------------------------------------------------------------------------ Chester Kieren $ 3,400 $2,133 $664 $ 1,227 12/12/94 Original Loan Date $ 1,227 $ -- 12/3/99 Maturity Date 8.53% Interest Rate Larry Wheelan 1,000 -- -- 1,000 8/5/97 Original Loan Date 1,000 -- 8/6/98 Maturity Date 9.25% Interest Rate Richard Flores 16,000 2,099 980 13,901 5/1/97 Original Loan Date 13,901 -- 5/9/02 Maturity Date 9.28% Interest Rate
Note: No loans were negotiated during the year. All loans are secured by the participant's account. The Company will collect overdue amounts upon a distributable report. 14 18 IXC Communications, Inc. 401(k) Plan Item 27d - Schedule of Reportable Transactions EIN: 74-2644120 Plan Number 002 For the year ended December 31, 1998
Current Value of Asset on Identity of Party Purchase Selling Cost of Transaction Net Gain Involved* Description of Asset Price Price Asset Date or (Loss)** - --------------------------------------------------------------------------------------------------------------------------------- Category (i) Single transactions in excess of 5% of beginning plan assets: Fundamental Investors -- $ 3,629,392 $ ** $ 3,629,392 Growth Fund of America -- 844,138 ** 844,138 Income Fund of America -- 1,719,831 ** 1,719,831 New Perspective Fund -- 2,120,845 ** 2,120,845 Small Capital World Fund -- 1,387,727 ** 1,387,727 American Value Fund 1,415,053 -- 1,415,053 1,415,053 Corporate Bond Fund 649,363 -- 649,363 649,363 Enterprise Fund 874,530 -- 874,530 874,530 Equity Income Fund 1,739,086 -- 1,739,086 1,739,086 International Magnum Fund 2,150,161 -- 2,150,161 2,150,161 Reserve Fund 352,760 -- 352,760 352,760 Value Fund 3,683,572 -- 3,683,572 3,683,572 Category (iii) Series of transactions in excess of 5% of beginning plan assets: Cash Management Trust -- $ 447,328 $ ** $ 447,328 Cash Management Trust 374,607 -- 374,607 374,607 Fundamental Investors -- 3,714,165 ** 3,714,165 Fundamental Investors 128,011 -- 128,011 128,011 Growth Fund of America -- 914,314 ** 914,314 Growth Fund of America 126,717 -- 126,717 126,717
15 19 IXC Communications, Inc. 401(k) Plan Item 27d - Schedule of Reportable Transactions (continued) EIN: 74-2644120 Plan Number 002 For the year ended December 31, 1998
Current Value of Asset on Identity of Party Purchase Selling Cost of Transaction Net Gain Involved* Description of Asset Price Price Asset Date or (Loss)** - --------------------------------------------------------------------------------------------------------------------------------- Category (iii) Series of transactions in excess of 5% of beginning plan assets: Income Fund of America $ -- $ 1,768,088 $ ** $ 1,768,088 Income Fund of America 70,037 -- 70,037 70,037 New Perspective Fund -- 2,194,469 ** 2,194,469 New Perspective Fund 162,411 -- 162,411 162,411 Small Capital World Fund -- 1,505,774 ** 1,505,774 Small Capital World Fund 70,797 -- 70,797 70,797 American Value Fund -- 590,198 ** 590,198 American Value Fund 2,332,242 -- 2,332,242 2,332,242 Corporate Bond Fund -- 280,936 ** 280,936 Corporate Bond Fund 923,452 -- 923,452 923,452 Enterprise Fund -- 488,536 ** 488,536 Enterprise Fund 1,841,172 -- 1,841,172 1,841,172 Equity Income Fund -- 802,671 ** 802,671 Equity Income Fund 2,573,496 -- 2,573,496 2,573,496 International Magnum Fund -- 802,900 ** 802,900 International Magnum Fund 2,420,617 -- 2,420,617 2,420,617 Reserve Fund -- 829,082 ** 829,082 Reserve Fund 1,862,585 -- 1,862,585 1,862,585 Value Fund -- 1,444,778 ** 1,444,778 Value Fund 4,231,014 -- 4,231,014 4,231,014
16 20 IXC Communications, Inc. 401(k) Plan Item 27d - Schedule of Reportable Transactions (continued) EIN: 74-2644120 Plan Number 002 For the year ended December 31, 1998
Current Value of Asset on Identity of Party Purchase Selling Cost of Transaction Net Gain Involved* Description of Asset Price Price Asset Date or (Loss)** - ------------------------------------------------------------------------------------------------------------------------------- Category (iii) Series of transactions in excess of 5% of beginning plan assets: Emerging Growth Fund $ -- $ 378,304 $ ** $ 378,304 Emerging Growth Fund 1,429,855 -- 1,429,855 1,429,855 Emerging Market Fund -- 7,500 ** 7,500 Emerging Market Fund 82,789 -- 82,789 82,789 Real Estate Securities Fund -- 25,440 ** 25,440 Real Estate Securities Fund 164,316 -- 164,316 164,316 IXC Communications, Inc. Stock -- 103,660 ** 103,660 IXC Communications, Inc. Stock 907,427 -- 907,427 907,427
* All transactions occurred in the market. ** Historical cost and net gain (loss) on sale transactions not available. 17 21 CONSENT OF INDEPENDENT AUDITORS We consent to the incorporation by reference in the Registration Statement on Form S-8 for the registration of 100,000 shares of Common Stock related to the IXC Communications, Inc. 401(k) Plan of our report dated June 30, 1998, with respect to the financial statements and schedules of the IXC Communications, Inc. 401(k) Plan included in this Annual Report on Form 11-K for the year ended December 31, 1998. Ernst & Young LLP Austin, Texas June 29, 1999 18 22 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. Date: June 29, 1999 IXC COMMUNICATIONS, INC. 401(K) PLAN By: /s/ STUART COPPENS --------------------------------- Stuart Coppens Trustee, Chief Accounting Officer of IXC Communications, Inc. -----END PRIVACY-ENHANCED MESSAGE-----