-----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, JOrgpuUOsRlr+5z0O4KOkWMUCRpEluvUaWL72mYq3aSizQABG/30GGBW1Qbslzh2 yuhDL4UPKikcnuU88LqUaQ== 0001047469-03-022892.txt : 20030630 0001047469-03-022892.hdr.sgml : 20030630 20030630165544 ACCESSION NUMBER: 0001047469-03-022892 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20021231 FILED AS OF DATE: 20030630 FILER: COMPANY DATA: COMPANY CONFORMED NAME: QWEST COMMUNICATIONS INTERNATIONAL INC CENTRAL INDEX KEY: 0001037949 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 841339282 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15577 FILM NUMBER: 03765061 BUSINESS ADDRESS: STREET 1: 1801 CALIFORNIA ST CITY: DENVER STATE: CO ZIP: 80202 BUSINESS PHONE: 3039921400 MAIL ADDRESS: STREET 1: 1801 CALIFORNIA ST CITY: DENVER STATE: CO ZIP: 80202 FORMER COMPANY: FORMER CONFORMED NAME: QUEST COMMUNICATIONS INTERNATIONAL INC DATE OF NAME CHANGE: 19970416 11-K 1 a2113763z11-k.htm FORM 11-K

Use these links to rapidly review the document
TABLE OF CONTENTS

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 11-K

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

(Mark One)  

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

For the fiscal year ended December 30, 2002, and the one-day period ended December 31, 2002

OR

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

For the transition period from                             to                              .

Commission File Number 001-15577

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

Qwest Savings & Investment Plan

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

Qwest Communications International Inc.
1801 California, Denver, Colorado 80202
303-992-1400


TABLE OF CONTENTS

 
Required Information

Independent Auditors' Report

Report of Independent Public Accountants

Statements of Net Assets Available for Benefits as of December 31, 2002 and December 30, 2002 and 2001

Statement of Changes in Net Assets Available for Benefits for the Year Ended December 30, 2002 and the One-Day Period Ended December 31, 2002

Notes to Financial Statements

SUPPLEMENTAL SCHEDULES

Schedule I: Schedule H, Line 4i—Schedule of Assets (Held at End of Year) as of December 31 and December 30, 2002

Schedule III: Schedule H, Line 4j—Schedule of Reportable Transactions for the Year Ended December 30, 2002

Schedule IV: Schedule G, Part III—Schedule of Nonexempt Transactions for the Year Ended December 30, 2002

SIGNATURE

EXHIBIT 23—Consent of Independent Auditors

1


REQUIRED INFORMATION

The Qwest Savings & Investment Plan (the "Plan") is subject to the Employee Retirement Income Security Act of 1974 ("ERISA"). Therefore, in lieu of the requirements of Items 1-3 of Form 11-K, the financial statements and schedules of the Plan as of December 31, 2002, December 30, 2002 and 2001, for the one-day period ended December 31, 2002 and the year ended December 30, 2002, which have been prepared in accordance with the financial reporting requirements of ERISA, are filed herewith.

2


Independent Auditors' Report

The Employee Benefits Committee
Qwest Communications International Inc.:

We have audited the accompanying statements of net assets available for benefits of the Qwest Savings & Investment Plan (the Plan) as of December 31, 2002 and December 30, 2002, and the related statements of changes in net assets available for benefits for the one-day period ended December 31, 2002 and the year ended December 30, 2002. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. The December 30, 2001 financial statements of the Qwest Savings & Investment Plan were audited by other auditors who have ceased operations. Those auditors expressed an unqualified opinion on those statements dated June 26, 2002.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. 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 Qwest Savings & Investment Plan as of December 31, 2002 and December 30, 2002, and the changes in net assets available for benefits for the one-day period ended December 31, 2002 and the year ended December 30, 2002 in conformity with accounting principles generally accepted in the United States of America.

Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules Schedule H, Line 4i-schedule of assets (held at end of year) as of December 31, 2002 and December 30, 2002, Schedule H, Line 4j-schedule of reportable transactions for the year ended December 30, 2002 and Schedule G, Part III-schedule of nonexempt transactions for the year ended December 30, 2002 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 supplemental schedules are the responsibility of the Plan's management and have been subjected to the auditing procedures applied in the 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.

  KPMG LLP

Denver, Colorado
June 27, 2003

3


REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

To the Employee Benefits Committee of
Qwest Communications International Inc.:

We have audited the accompanying statements of net assets available for benefits of the Qwest Savings & Investment Plan (the "Plan") (formerly known as the U S WEST Savings Plan/ESOP) as of December 30, 2001 and 2000, and the related statement of changes in net assets available for benefits for the year ended December 30, 2001. 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 auditing standards generally accepted in the United States of America. 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 as of December 30, 2001 and 2000, and the changes in net assets available for benefits for the year ended December 30, 2001, in conformity with accounting principles generally accepted in the United States of America.

Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of assets (held at end of year), assets (acquired and disposed of within the plan year), reportable transactions, and nonexempt transactions as of December 30, 2001 or for the year ended December 30, 2001 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. These supplemental schedules are the responsibility of the Plan's management. The supplemental schedules 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.

  ARTHUR ANDERSEN LLP

Denver, Colorado,
        June 26, 2002.

The report of Arthur Andersen LLP (Andersen) is a copy of a report previously issued by Andersen on June 26, 2002. The report has not been reissued by Andersen nor has Andersen consented to its inclusion in this Annual Report on Form 11-K. The Andersen report refers to the statement of net assets available for benefits as of December 30, 2000 and the statement of changes in net assets available for benefits for the year ended December 30, 2001 which are no longer included in the accompanying financial statements.

4


QWEST SAVINGS & INVESTMENT PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
(Thousands of Dollars)

 
   December 31,
2002
   December 30,
2002
   December 30,
2001
  
ASSETS                    
Investments (See Notes 2, 3, 4, 5 and 11):                    
Qwest Communications International Inc. Common Stock (Note 11)   $ 419,347   $ 426,266   $ 993,980  

AT&T Corporation Common Stock
 
 
44,446
 
 
44,344
 
 
210,661
 

U S Government obligations
 
 
118,240
 
 
116,223
 
 
44,878
 

Bank and insurance company contracts
 
 
752,992
 
 
759,184
 
 
745,233
 

Capital Guardian International Equity
 
 
191,534
 
 
190,482
 
 
245,831
 

Barclays Global Investors Equity Index Fund
 
 
575,357
 
 
574,999
 
 
840,146
 

Other marketable securities
 
 
270,356
 
 
271,007
 
 
418,896
 

Investment in Master Trust (Note 4)
 
 
81,612
 
 
81,345
 
 
67,366
 

Loans to plan participants
 
 
85,400
 
 
86,837
 
 
109,903
 

Temporary investments
 
 
109,642
 
 
105,746
 
 
52,758
 
   
 
 
 
 
Total Investments
 
 
2,648,926
 
 
2,656,433
 
 
3,729,652
 

Receivables:
 
 
 
 
 
 
 
 
 
 
Employee and employer contributions, net of forfeitures     4,336     4,336     2,575  

Fund and other transfers, net
 
 
852
 
 
852
 
 
629
 

Dividends and interest
 
 
2,072
 
 
1,971
 
 
3,870
 

Receivables for investments sold
 
 
22,199
 
 
21,563
 
 
2,372
 
   
 
 
 
 
Total Receivables
 
 
29,459
 
 
28,722
 
 
9,446
 
   
 
 
 
 
Total Assets
 
 
2,678,385
 
 
2,685,155
 
 
3,739,098
 

LIABILITIES
 
 
 
 
 
 
 
 
 
 
Unclaimed distributions     —     —     (175 )

Expenses payable
 
 
(2,240
)
 
(2,214
)
 
(3,508
)

Payables for securities purchased
 
 
(69,114
)
 
(68,584
)
 
(10,022
)

Other liabilities
 
 
(163
)
 
(163
)
 
—
 
   
 
 
 
 
Total Liabilities
 
 
(71,517
)
 
(70,961
)
 
(13,705
)
   
 
 
 

Net Assets Available for Benefits
 
$
2,606,868
 
$
2,614,194
 
$
3,725,393
 
   
 
 
 

See accompanying notes to financial statements.

5


QWEST SAVINGS & INVESTMENT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
(Thousands of Dollars)

 
   One-Day Period
Ended
December 31, 2002
   Year
Ended
December 30, 2002
  
ADDITIONS              

Employee contributions
 
$
3,865
 
$
191,808
 

Employer contributions, net of forfeitures applied
 
 
1,481
 
 
85,940
 

Rollovers
 
 
—
 
 
25,424
 

Transfers, net and other
 
 
(3,508
)
 
1,766
 
   
 
 
 
Total additions
 
 
1,838
 
 
304,938
 
   
 
 

INCOME (LOSS)
 
 
 
 
 
 
 

Interest and other dividends
 
 
285
 
 
59,285
 

Net depreciation in fair value of investments (Notes 2 and 3)
 
 
(7,426
)
 
(908,870
)

Plan's share of the income, expenses, and net appreciation (depreciation) in fair value of investments of the Master Trust (Note 4)
 
 
382
 
 
(21,863
)
   
 
 
 
Total loss
 
 
(6,759
)
 
(871,448
)
   
 
 

Total additions and loss
 
 
(4,921
)
 
(566,510
)
   
 
 

DEDUCTIONS
 
 
 
 
 
 
 

Plan expenses
 
 
(26
)
 
(9,434
)

Participant distributions
 
 
(2,379
)
 
(535,255
)
   
 
 
 
Total deductions
 
 
(2,405
)
 
(544,689
)
   
 
 
 
Net Decrease
 
 
(7,326
)
 
(1,111,199
)

Net Assets Available for Benefits at beginning of period
 
 
2,614,194
 
 
3,725,393
 
   
 
 

Net Assets Available for Benefits at end of period
 
$
2,606,868
 
$
2,614,194
 
   
 
 

See accompanying notes to financial statements.

6


Qwest Savings & Investment Plan
NOTES TO FINANCIAL STATEMENTS
(Amounts in Thousands of Dollars)

1.
Plan Description:

    The following is a brief description of the Qwest Savings & Investment Plan ("QSIP" or the "Plan") and provides general information only. Participants and all others should refer to the Plan Document for a more complete description of the Plan's provisions.

    General

    The Plan was established by U S WEST, Inc. ("U S WEST") and amended by Qwest Communications International Inc. ("Qwest" or the "Company") during 2001 to provide a convenient way for employees to save on a regular and long-term basis. The Plan is a defined contribution plan and covers substantially all of the employees of Qwest.

    Qwest acquired U S WEST on June 30, 2000 (the "Merger"). The individuals who were employed by U S WEST at the time of the Merger became employees of Qwest by operation of law. The Qwest employees at the time of the Merger continued to participate in the employee benefit plans maintained by Qwest prior to the Merger and were not eligible employees of this plan prior to midnight December 30, 2001 (see Plan Merger below).

    The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). Benefits under the Plan are not guaranteed by the Pension Benefit Guaranty Corporation.

    Plan Amendments

    Effective December 30, 2000, the Plan year was changed to the 12 consecutive month period commencing on December 31 and ending on the following December 30. The period commencing January 1, 2000 and ending December 30, 2000 was a short Plan year.

    Effective January 1, 2003 the Plan Year was changed to a year commencing on January 1 and ending on December 31. As a result, the Plan has included a statement of net assets available for benefits as of December 31, 2002 and a statement of changes in net assets available for benefits for the one-day period ended December 31, 2002.

    Effective January 1, 2001 the limit on management employee contributions was increased from a maximum of 16% to a maximum of 18% of eligible compensation. The limit on occupational (union or bargained for) employee contributions is 16% of eligible compensation.

    Effective May 31, 2001, a Master Trust ("MT") was established to hold certain assets of the Plan and the Qwest Pension Plan as further described in Note 4.

    Effective June 30, 2001, a number of new investment funds were established under the Plan, reflecting a revised set of investment opportunities available to Plan participants.

    Effective November 19, 2001, the name of the U S WEST Savings Plan/ESOP was changed to the Qwest Savings & Investment Plan.

    Effective December 31, 2001, the plan was modified for management employees to automatically enroll the employee into the plan on the first full pay period after the hire date.

    Effective April 8, 2002 the Plan was amended to allow all participants the ability to transfer the value of the Qwest common stock, which was received as the Company match, to any fund available for investment within the Plan.

7


    Effective August 7, 2002 no participant can direct any investment into Qwest shares until further notice from the Company.

    Eligibility, Contributions, and Vesting

    Effective January 1, 2001, management employees are eligible to enter the Plan immediately (on their hire date). Occupational employees are eligible to enter the plan after completion of three months of service with the Company. Effective January 1, 2001, occupational employees and management employees may designate up to 16% and 18% respectively, of their eligible compensation as contributions to the Plan. In general, the Company provides a matching contribution in Qwest common stock or cash. Participant contributions up to 3% of a management employee's eligible compensation receive a 100% Company match. Participant contributions up to 6% of an occupational employee's eligible compensation receive an 81% Company match. Any management and occupational employee contributions in excess of 3% and 6% respectively, of eligible compensation, do not receive a Company match. Management employees are eligible for the Company matching contribution immediately upon hire date. Generally, occupational employees are eligible for the Company matching contribution after completion of one year of service. Effective January 1, 2001, a management participant is 100% vested in Company contributions immediately upon entrance into the Plan. An occupational participant becomes 100% vested in Company contributions after completion of three years of service with the Company. Employee contributions may either be before-tax or after-tax, or a combination of both. Before-tax employee contributions in 2002 are limited to $11 as provided in Section 402(g) of the Internal Revenue Code.

    Plan Merger

    The Qwest Communications 401(k) Savings Plan ("Qwest Plan") and related net assets of $121,220 merged into the QSIP effective midnight December 30, 2001. All participants' account balances in the Qwest Plan transferred into the QSIP. Merrill Lynch Trust Company, FSB ("Merrill Lynch") ceased to be the trustee and recordkeeper for the Qwest Plan.

    Investment Options

    Participants are able to invest in the following investment options:

    •
    Interest Income Fund—This fund emphasizes relatively stable, predictable income by investing in high-quality investment contracts and other fixed income investments with a diversified group of insurance companies, banks and other financial institutions.

    •
    Bond Fund—This fund is designed to offer the investor long-term preservation of capital while providing greater current income and yield by investing in a broadly diversified portfolio of fixed-income instruments of varying maturities.

    •
    Conservative Asset Allocation Fund—This fund seeks to provide current income and short-term stability of capital by investing in a diverse mix of securities with a target mix of 40% in stocks and 60% in bonds.

    •
    Moderate Asset Allocation Fund—This fund provides an investor with a more balanced approach to income preservation and long-term growth potential by investing in a diverse mix of securities with a target mix of 60% in stocks and 40% in bonds.

    •
    Aggressive Asset Allocation Fund—This fund focuses on long-term growth of capital by investing in a diverse mix of securities with a target mix of 80% in stocks and 20% in bonds.

    •
    U. S. Stock Fund—This fund seeks to provide long-term growth by mirroring both the composition and performance of the Standard & Poor's 500 Index.

8

    •
    U.S. Small/Mid Cap Stock Fund—This fund seeks to provide long-term growth of capital by investing in smaller and mid-sized United States companies using multiple investment managers.

    •
    The International Stock Fund—This fund seeks to provide long-term growth of capital and income by investing primarily in the stocks of companies based outside the United States.

    •
    The Qwest Shares Fund—This fund seeks to provide investment returns linked to the long-term earnings growth of Qwest, which provides communications services to residential and business customers in its 14-state local service area as well as nationally and internationally. This is an undiversified stock investment and concentrating any undiversified investment should be considered a high-risk investment. Effective August 7, 2002 no participant can direct any investment into Qwest shares until further notice from the Company.

    •
    AT&T Shares Fund—This fund (closed to new participants) invests primarily in shares of AT&T Corp. ("AT&T") common stock and AT&T Wireless common stock plus any other stock that is issued by AT&T as a replacement for the stock held in this fund. During 2002, AT&T sold its Broadband subsidiary which resulted in the acquisition of Comcast Corp. common stock. This is an undiversified stock investment and concentrating any undiversified investment should be considered a high-risk investment.

    •
    Personal Choice Retirement Account ("PCRA")—This is a separate brokerage account made available through Charles Schwab & Company, Inc. and offers access to a wide range of investment opportunities including mutual funds and most common stocks listed on major United States exchanges.

    The assets held under these investment options are summarized in Schedule I.

    Loans

    Pursuant to the Plan, loans are made available to participating employees based upon a participant's vested account balance up to a maximum of $50. Except under certain provisions, the loans provide for periodic repayments over a period not to exceed five years (fifteen years for residential loans) at an interest rate as determined by the Employee Benefits Committee of the Company. Participants may also make lump-sum repayments at any time after the six month period following the date of the issuance of the loan.

    Trust and Recordkeeping Services

    Bankers Trust Company, a subsidiary of Deutsche Bank ("Bankers Trust") is the Trustee and CitiStreet LLC ("CitiStreet") is the Recordkeeper for the Plan. Effective October 1, 2002, CitiStreet became the Recordkeeper after MetLife elected to exit the recordkeeping business for large plans.

    Tax Status

    The Internal Revenue Service has determined and informed the Company by a letter dated July 20, 2001 that the Plan is qualified and that the trust established under the Plan is tax-exempt under the appropriate sections of the Internal Revenue Code (the "Code").

    Since July 20, 2001 the Plan has been amended. However the Plan Administrator believes that the Plan is currently designed and being operated in compliance with the applicable requirements of the Code, the Plan is qualified, and the related trust is tax-exempt as of December 31, 2002 and December 30, 2002 and 2001. On December 27, 2002 the Company on behalf of the Plan filed for a new tax determination letter.

9


    Participant Accounts

    Each participant's account is credited with the participant's contributions, the Company's matching contributions and investment gains and charged for losses and an allocable share of Plan expenses.

    Annual additions are defined as participant's contributions and the Company's matching contributions. Total annual additions under the Plan and all other plans sponsored by the Company were limited to the lesser of 25% of eligible compensation, as defined, or thirty-five thousand dollars.

    Payment of Benefits

    Upon retirement, termination of employment or death, each participant or beneficiary is entitled to receive amounts in accordance with the terms of the Plan. Participants may also make in-service voluntary withdrawals and hardship withdrawals if certain criteria are met. Benefit payments may be in the form of a lump sum or other benefit distributions in accordance with the options that are available, as further discussed in the Plan document.

2.
Summary of Significant Accounting Policies:

    Investment Valuation and Income Recognition

    The values of investments are determined as follows: Qwest common stock and other securities listed on recognized United States and international stock exchanges are valued on the basis of the last published sales price on December 31, 2002, December 30, 2002 and December 30, 2001 or, if no sales were made on that date, at the last published sales price on the immediately preceding day on which sales were made.

    Over-the-counter securities and government obligations are valued based on the bid prices on December 31, 2002, December 30, 2002 and December 30, 2001, from published sources where available and, if not available, from other sources considered reliable.

    The Plan has entered into eleven bank and insurance company contracts with nine banks and insurance companies which are included in the Interest Income Fund and are reported at contract value, calculated as principal plus reinvested interest, which approximates fair value. These contracts are fully-benefit responsive. A contract is fully-benefit responsive if the terms of the Plan allow for withdrawals from the investment contract at contract (book) value for payment of participant initiated transactions.

    In accordance with the provisions of the American Institute of Certified Public Accountants' Statement of Position 94-4, "Reporting of Investment Contracts Held by Health and Welfare Benefit Plans and Defined Contribution Pension Plans," fully benefit responsive investment contracts are reported at contract value and fair value is disclosed. Interest rates on the contracts are either fixed rates for the term of the contract or are reset quarterly or monthly based on the terms of the contract. The fair values of the contracts are estimated to be $802,298 as of December 31, 2002 and $803,062 and $770,926 as of December 30, 2002 and 2001, respectively. This compares to contract values of $752,992 as of December 31, 2002 and $759,184 and $745,233 as of December 30, 2002 and 2001, respectively. Investment contracts with fully-benefit responsive wrappers are reported together since the value of the wrappers is immaterial to the respective investment contracts. A wrapper is a contract issued by a bank or insurance company and backed by a portfolio of high quality fixed income securities held in a trust. The contract requires the issuer to utilize book value accounting which absorbs market value fluctuations and provides participants with a stable return.

    At December 31, 2002 and December 30, 2002 and 2001, the average crediting interest rates on these contracts were 5.38%, 5.42% and 5.97%, respectively. For the one-day period ended

10


    December 31, 2002 and the year ended December 30, 2002, the average annual yield earned on these contracts was 5.38% and 5.74%, respectively.

    Net realized and unrealized gains and losses are reflected in the Statement of Changes in Net Assets Available for Benefits as net depreciation in fair value of investments and are determined as the difference between fair value at the beginning of the year (or date purchased during the year) and selling price or year end fair value.

    Dividend income is recorded on the ex-dividend date. Interest is accrued when earned. Purchases and sales of securities are recorded on a trade date basis.

    Basis of Accounting

    The accompanying financial statements have been prepared on an accrual basis of accounting.

    Use of Estimates

    The preparation of the Plan's financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires the Plan's management to make estimates and assumptions that affect the accompanying financial statements and disclosures. Actual results could differ from those estimates.

3.
Investments:

    The following presents investments that represent 5% or more of the Plan's net assets:

 
   December 31,
2002
   December 30,
2002
   December 30,
2001
  
Barclays Global Investors Equity Index Fund
48,187, 48,198 and 54,273 shares, respectively		   $ 575,357   $ 574,999   $ 840,146  
Qwest Communications International Inc.
83,869, 83,582 and 69,802 shares, respectively		     419,347 *   426,266 *   993,980 *
AT&T Corporation Common Stock
11,588 shares as of December 30, 2001		     — **   — **   210,661  
Capital Guardian International Equity
26,939, 26,942 shares and 29,554 shares, respectively		     191,534     190,482     245,831  
UBS Inc. Guaranteed Investment Contract     152,930     152,906     — **
State Street Bank & Trust Guaranteed Investment Contract     139,778     139,754     — **
    *
    Includes nonparticipant-directed assets (as shown below in Note 5)

    **
    Investment not in excess of 5% at respective date.

11

    For the one-day period ended December 31, 2002 and the year ended December 30, 2002, the Plan's investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated (depreciated) in value as follows:

 
   One-Day Period Ended December 31, 2002
   Year Ended December 30, 2002
  
Qwest Common Stock   $ (8,384 ) $ (554,495 )
Common Stock     (728 )   (119,054 )
Commingled Funds     1,592     (228,546 )
Mutual Funds     103     (15,224 )
U.S. Government Securities     72     7,491  
Other Securities     (81 )   958  
   
 
 
    $ (7,426 ) $ (908,870 )
   
 
 
4.
Master Trust Allocation:

    The MT is a trust that was established effective May 31, 2001 by Qwest Asset Management Company as named fiduciary of the Plan and the Qwest Pension Plan. The Qwest Pension Plan became a participating plan in the MT as of May 31, 2001. The Plan became a participating plan in the MT effective July 1, 2001. The MT investment is included in the U.S. Small/Mid Cap Stock Fund investment option for participants. The MT was established for a variety of reasons including 1) the Plan wished to have a small-mid cap investment option, 2) there would be lower marginal investment management fees, and 3) there would be access to institutional investment products. The underlying investment by the QSIP in the MT is reflected in the QSIP Statement of Net Assets Available for Benefits as of December 31, 2002 and December 30, 2002 and 2001.

    The Plan's interest in the assets of the MT is included in the accompanying statements of net assets available for benefits. A summary of the assets of the MT as of December 31, 2002 and 2001 and December 30, 2002 is as follows:

 
   December 31,
2002
   December 30,
2002
   December 31,
2001
  
Investments, at fair market value:                    
  Common collective trusts   $ 120,745   $ 117,383   $ 158,621  
  Corporate stock     116,701     118,240     146,500  
   
 
 
 
    Total investments     237,446     235,623     305,121  
Interest and dividends receivable     153     158     109  
Net pending security trades receivable (payable)     (296 )   12     190  
Administrative expenses payable     (532 )   (529 )   (442 )
   
 
 
 
    Net assets of the Master Trust   $ 236,771   $ 235,264   $ 304,978  
   
 
 
 

    The allocation of net assets of the MT to participating plans as of December 31, 2002 and 2001 and December 30, 2002 is as follows:

 
   December 31,
2002
   December 30,
2002
   December 31,
2001
  
QSIP Plan   $ 81,728   34.52 % $ 80,935   34.40 % $ 67,177   22.03 %
Qwest Pension Plan     155,043   65.48     154,329   65.60     237,801   77.97  
   
 
 
 
 
 
 
  Total   $ 236,771   100.00 % $ 235,264   100.00 % $ 304,978   100.00 %
   
 
 
 
 
 
 

12

    The investment in MT included in the accompanying statements of net assets available for benefits excludes the impact of receivables for investments sold and payables for securities purchased at each respective date.

    The MT's net investment results and administrative expenses are allocated to the participating plans. The amounts allocable for the one-day period ended December 31, 2002 and the year ended December 30, 2002 are as follows:

 
   One-Day
Period Ended December 31, 2002
   Year Ended December 30, 2002
  
Investment income (loss):              
Net appreciation (depreciation)              
  in fair value of Investments   $ 955   $ (70,259 )
Interest and dividends     4     1,413  
   
 
 
    Net investment gain (loss)     959     (68,846 )
Administrative expenses     (4 )   (1,267 )
   
 
 
    Net amounts allocable   $ 955   $ (70,113 )
   
 
 

    The Plan's share of the MT's net investment results and administrative expenses were $382 for the one-day period ended December 31, 2002 and $(21,863) for the year ended December 30, 2002.

    The net appreciation (depreciation) in the fair value of investments in the MT by major investment category for the one-day period ended December 31, 2002 and the year ended December 30, 2002 is as follows:

 
   One-Day Period Ended December 31, 2002
   Year Ended December 30, 2002
  
Common collective trusts   $ 7,048   $ (46,773 )
Corporate stock     (6,093 )   (23,486 )
   
 
 
  Net appreciation (depreciation)   $ 955   $ (70,259 )
   
 
 
5.
Nonparticipant-Directed Investments:

    Nonparticipant-directed investments consist of the Company match in the form of Qwest common stock and other related assets. The Qwest Shares Fund consists of both participant and non-participant directed assets. A distinction between participant and non-participant directed assets is not maintained, therefore the presentation below has been reported as non-participant directed.

    The amounts below do not include Qwest common stock held in the PCRA account or held by other commingled funds. Information about the net assets and significant components of the changes in net assets relating to the nonparticipant-directed investments is as follows. Company common stock and other related assets held at December 31, 2002 and December 30, 2002 and 2001 were $427,738, $434,945 and $975,657, respectively.

13


    The change in nonparticipant-directed investments is as follows:

 
   One-Day
Period Ended
December 31,
2002
   Year Ended
December 30,
2002
  
Contributions   $ 1,480   $ 110,271  
Earnings     —     101  
Net Realized and Unrealized Losses     (8,384 )   (554,495 )
Transfers     (85 )   (31,719 )
Distributions and Expenses     (218 )   (64,870 )
   
 
 
Total Change in Net Assets     (7,207 )   (540,712 )
Value at Beginning of the Period     434,945     975,657  
   
 
 
Value at End of the Period   $ 427,738   $ 434,945  
   
 
 

    The net assets available for benefits for nonparticipant-directed investments are as follows:

 
   December 31, 2002
   December 30, 2002
   December 30, 2001
  
Temporary Investments   $ 4,205   $ 4,496   $ 8,282  
Qwest Common Stock     419,194     426,110     965,256  
Contributions Receivable     4,336     4,336     2,479  
Accrued Income     3     3     16  
   
 
 
 
  Total Assets     427,738     434,945     976,033  
Accrued Plan Expenses     (— )   (— )   (376 )
   
 
 
 
  Net Assets   $ 427,738   $ 434,945   $ 975,657  
   
 
 
 
6.
Forfeitures:

    When certain terminations of participation occur, the non-vested portion of a participant's account represents a forfeiture. Forfeitures are used to reduce future employer contributions or to pay administrative expenses of the Plan. For the one-day period ended December 31, 2002 and the year ended December 30, 2002, forfeitures of $0 and $136, respectively, were used to reduce employer contributions.

    Contributions receivable at December 30, 2002 and 2001, and Company contributions for the year ended December 30, 2002 are shown net of forfeitures applied. Unapplied forfeitures were $104 as of December 31, 2002 and $104 and $76 as of December 30, 2002 and 2001, respectively.

7.
Plan Termination:

    In the event that the Plan is terminated, subject to conditions set forth by ERISA, the Plan provides that the net assets be distributed to participating employees in an amount equal to their respective interests in such assets.

8.
Reconciliation of Financial Statements to Form 5500:

    For Form 5500 purposes, amounts allocated to withdrawing participants are recorded for benefit claims that have been processed and approved for payment prior to the respective period end, but not yet paid as of that date. However, in accordance with GAAP, benefit withdrawals are recorded when paid.

14

    The following is a reconciliation of net assets available for benefits and benefits paid to participants per the financial statements to Form 5500:

 
   December 31, 2002
   December 30, 2002
   December 30, 2001
  
Net assets available for benefits per the financial statements   $ 2,606,868   $ 2,614,194   $ 3,725,393  
Less amounts allocated to withdrawing participants     (632 )   (1,227 )   (7,704 )
   
 
 
 
Net assets available for benefits per Form 5500 (unaudited)   $ 2,606,236   $ 2,612,967   $ 3,717,689  
   
 
 
 
 
   One-Day
Period Ended
December 31,
2002
   Year Ended
December 30,
2002
  
Benefits and distributions paid to participants per the financial statements   $ 2,379   $ 535,255  
Add amounts payable at end of period     632     1,227  
Less amounts payable at beginning of period     (1,227 )   (7,704 )
   
 
 
Participant distributions paid per Form 5500 (unaudited)   $ 1,784   $ 528,778  
   
 
 
9.
Plan Expenses:

    Plan expenses are paid from the Plan, except certain expenses incurred by Qwest related to Plan administration.

10.
Related-Party Transactions:

    Certain Plan assets are short-term investment funds managed by Bankers Trust. From the date of divestiture from AT&T, through June 2003, Bankers Trust was the Trustee as defined by the Plan and, therefore, these transactions qualify as party-in-interest (see Note 13). The Plan invests in certain common collective trusts managed by the Plan's various investment managers; therefore, these transactions qualify as party-in-interest. In addition, the Plan has significant investments in Qwest common stock which qualify as party-in-interest transactions.

11.
Concentrations, Risks and Uncertainties:

    As disclosed above, the Plan has a significant concentration of investments in Qwest common stock. As a result of such concentration, the decrease in the value of the Qwest common stock for the one-day period ended December 31, 2002 was $8,384 and was $554,495 for the year ended December 30, 2002.

    The Plan provides for various investment options. Investment securities, in general, are exposed to various risks, such as significant world events, interest rate, credit, foreign currency, and overall market volatility risk. Due to the level of risk associated with certain investment securities, other than Qwest common stock which is discussed above, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the statements of net assets available for benefits.

    The Plan invests in certain commingled funds. These funds may invest in derivative instruments. These instruments consist mainly of foreign currency forwards, futures contracts and options. These instruments are used mainly for hedging purposes. Credit risk exists with respect to these instruments.

15


    Legal Matters

    Since March 2002, seven putative class action suits were filed in federal district court in Colorado purportedly on behalf of all participants and beneficiaries of the Plan and predecessor plans (the "Plan") from March 7, 1999 until the present. By court order, the first five of these putative class actions have been consolidated with each other. The consolidated amended complaint filed on July 5, 2002 (the "consolidated ERISA action") names as defendants the Plan, the Plan's Investment Committee, the Plan Administrative Committee of the pre-Merger Qwest Communications 401(k) Savings Plan, Qwest, several former and current directors, officers and employees of Qwest and Qwest Asset Management. Plaintiffs filed a Second Amended and Consolidated Complaint on May 21, 2003, naming as defendants another Qwest employee and Qwest's Plan Design Committee.

    The consolidated ERISA action, which is brought under ERISA, alleges, among other things, that the defendants breached fiduciary duties to the Plan members by allegedly excessively concentrating the Plan's assets invested in Qwest stock, requiring certain participants in the Plan to hold the Company match in the Qwest Shares Fund, failing to disclose to the participants the alleged accounting improprieties that are the subject of a consolidated securities action to which Qwest is a party, failing to investigate the prudency of investing in Qwest stock, continuing to offer Qwest stock as an investment option under the Plan, failing to investigate the effect of the June 30, 2000 merger of U S WEST and Qwest (the "Merger") on Plan assets and then failing to vote the Plan's shares against it and, as against some of the individual defendants, capitalizing on their private knowledge of Qwest's financial condition to reap profits in stock sales. Plaintiffs seek equitable and declaratory relief, along with attorneys' fees and costs and restitution. The sixth putative class action on behalf of Plan participants and beneficiaries was filed in federal district court in Colorado on November 7, 2002, asserting substantially the same ERISA violations as the consolidated ERISA action. Qwest is also a defendant in this action. The seventh putative class action was filed in federal district court in Colorado on November 7, 2002, asserting substantially the same ERISA violations as the consolidated ERISA action. Pursuant to an order concerning consolidation of subsequent suits involving the Plan, the Company expects the sixth and seventh suits to be consolidated with the consolidated ERISA action. A motion to consolidate these suits with the consolidated ERISA action remains pending. Plaintiffs moved for class certification on January 15, 2003, and the Company has opposed that motion, which is pending before the court. Defendants filed motions to dismiss the consolidated ERISA action on August 22, 2002. Procedurally, those motions also apply to the sixth and seventh complaints which have not yet been consolidated. Those motions have been briefed and are currently pending before the court.

    Qwest is also involved in various other legal matters that are more fully disclosed in recent publicly available filings, including a consolidated securities action alleging violation of federal securities laws. Although the Company believes it and the Plan have meritorious defenses, the consolidated ERISA action, the consolidated securities action and other legal matters relating to Qwest present significant risk to the Company and the Plan assets. The Company is, however, unable at this time to estimate reasonably a range of loss Qwest and the Plan would incur if plaintiffs in one or more of these lawsuits were to prevail under one or more of their claims. Qwest intends to defend vigorously these matters. However, their ultimate resolution is uncertain. Thus, no assurance can be given as to the impacts the defense and resolution of these matters may have on Qwest's or the Plan's financial results or financial condition. The ultimate resolution of these matters could have a material adverse impact on Qwest's and the Plan's financial results.

    DOL Examination

    In April 2002, the U.S. Department of Labor commenced an examination of the Plan. It is currently not possible to predict the outcome of this examination or the impact on the Plan's net assets or changes in net assets, if any.

16


    IRS Examination

    In November 2002, the Internal Revenue Service commenced an examination of the Plan. It is currently not possible to predict the outcome of this examination or the impact on the Plan's net assets or changes in net assets, if any.

12.
Nonexempt Transactions:

    The Company failed to remit certain employee deferral contributions withheld from participants' wages to the QSIP during certain pay periods in 2002 (see Schedule IV).

13.
Subsequent Events:

    Change in Trustee

    Bankers Trust, the current trustee for the Plan, was purchased by State Street Bank and Trust Company ("State Street") on January 31, 2003. Qwest has selected State Street as the new trustee for the QSIP. The transition of assets from Deutsche Bank to State Street will occur effective July 1, 2003 or as soon thereafter as practical.

    Plan Amendments

    The Plan was amended effective May 1, 2003 to include certain temporary employees as covered employees.

    The Plan was amended effective June 1, 2003 to mandate distributions in a single lump sum to any participant who has terminated employment and whose vested account equals five thousand dollars or less at the time of the distribution.

    Investment Advice

    Effective June 16, 2003 participants were provided access to investment advice on Plan assets through CitiStreet Advisors LLC.

    Closure of AT&T fund

    Effective June 27, 2003 the Plan closed the AT&T share fund option. Prior to June 27, 2003 participants could move their AT&T assets to any other QSIP fund option or for those participants with a balance equal to or greater than $100 in the AT&T fund, they could convert their interest into shares and move those shares into a PCRA account. If the participant had less than a $100 interest in the AT&T fund or chose to do nothing, their interest was liquidated and transferred into the Moderate Asset Allocation fund at the close of business on June 27, 2003.

17


Qwest Savings & Investment Plan
Schedule H, Line 4i—Schedule of Assets (Held at End of Year)
As of December 31, 2002
Schedule l

Name of Issue, Borrower, Lessor or Similar Party
   Description of Investment
   Shares or
Units
   Current
Value
AT&T CORP CLA A COMMON STOCK   Common Stock   1,702,267   $ 44,446,191
AT&T WIRELESS SVCS INC COMMON STOCK   Common Stock   3,951,260     22,324,619
COMCAST CORP CLASS A CM   Common Stock   2,797,468     65,936,321
*QWEST COMMUNICATIONS INTL INC COM   Common Stock (cost of $1,993,299,255)   83,838,786     419,193,930
AIG SUNAMERICA GLOBAL FIN IX SERIES 144A   Corporate Debt Obligation   1,420,000     1,651,801
ALBERTSONS INC SR DEB 07/27/1999 7.450% 08/01/2029   Corporate Debt Obligation   395,000     436,250
ALLIANT ENERGY RESOURCES 9.750% DTD 12/26/2002 MAT 01/15/2013   Corporate Debt Obligation   160,000     158,765
ALLSTATE CORP DEB DTD 05/26/1998 6.900%   Corporate Debt Obligation   750,000     831,818
AMERADA HESS CORP 7.300% DTD 15AUG2001 DUE 15AUG2031   Corporate Debt Obligation   115,000     124,968
AMERICAN HOME PROD 6.250% DTD 30MAR2001 DUE 15MAR2006   Corporate Debt Obligation   175,000     190,127
AOL TIME WARNER INC 6.875% DTD 08APR2002 DUE 01MAY2012   Corporate Debt Obligation   70,000     73,927
AOL TIME WARNER INC 7.625% DTD 19APR2001 15APR2031   Corporate Debt Obligation   30,000     30,833
AOL TIME WARNER INC 7.700% DTD 08APR2002 DUE 01MAY2032   Corporate Debt Obligation   625,000     650,456
ARCHER-DANIELS-MIDLAND CO 5.875% DTD 01OCT2002 DUE 01OCT2032   Corporate Debt Obligation   100,000     99,780
AT& T WIRELESS SERVICES GROUP 8.75% NTS DTD 03/01/2001 MAT 03/01/2031   Corporate Debt Obligation   205,000     200,900
AT&T BROADBAND CORP 8.375% DTD 18NOV2002 DUE 15MAR2013   Corporate Debt Obligation   275,000     312,378
AT&T CORPORATION 6.500% DTD 31OCT2002 DUE 15MAR2013   Corporate Debt Obligation   140,000     140,438
AT&T CORPORATION SR NTS   Corporate Debt Obligation   45,000     49,600
AT&T WIRELESS GROUP 7.875% DTD 01SEP2001 DUE 01MAR2011   Corporate Debt Obligation   40,000     40,200
AVALONBAY CMNTYS INC MEDIUM TERM NTS TRANCHE # TR 00002   Corporate Debt Obligation   355,000     396,872
BANK OF AMERICA CORP 4.875% DTD 25SEP2002 DUE 15SEP2012   Corporate Debt Obligation   165,000     166,780
BANK OF AMERICA CORP 7.80% DTD 14FEB2000 DUE 15FEB2010   Corporate Debt Obligation   125,000     148,689
BAYERISCHE LANDESBANK GIRO 4.125% DTD 14JAN2002 DUE 14JAN2005   Corporate Debt Obligation   490,000     510,467
BOEING CO 7.950% 08/15/2024   Corporate Debt Obligation   365,000     436,120
BRE PROPERTIES INC 5.950% DTD 12MAR2002 DUE 15MAR2007   Corporate Debt Obligation   130,000     136,984
BURLINGTON NORTHERN SANTA FE 6.750% DTD 15MAY2001 DUE 15JUL2011   Corporate Debt Obligation   145,000     164,590
CALIFORNIA INFRASTRUCTURE & ECONOMIC DEV PG&E SER 1997-1 CTF CL A7   Corporate Debt Obligation   145,000     157,841
CALIFORNIA INFRASTRUCTURE 7 ECONOMI SERIES 1997-1 CLASS A6   Corporate Debt Obligation   165,000     180,201
CAPITAL AUTO RECEIVABLE ASSET TRUST SERIES 2002-3 CL A2A   Corporate Debt Obligation   580,000     591,519
CAPITAL AUTO RECV ABN SERIES 2002-2 CL A3   Corporate Debt Obligation   285,000     292,270
CHARTER ONE BK F S B 6.375% DTD 20MAY2002 DUE 15MAY2012   Corporate Debt Obligation   120,000     132,570
CINGULAR WIRELESS LLC 6.500% DTD 15JUN2002 DUE 15DEC2011   Corporate Debt Obligation   750,000     808,973
CIT GROUP INC 5.500% DTD 12/02/2002 MAT 11/30/2007   Corporate Debt Obligation   85,000     86,902
CITICORP 6.750% 08/15/2005   Corporate Debt Obligation   1,325,000     1,469,332
CITIGROUP INC 5.625% DTD 26AUG2002 DUE 27AUG2012   Corporate Debt Obligation   85,000     89,376
CITIGROUP INC 6.750% DTD 06DEC2000 DUE 01DEC2005   Corporate Debt Obligation   165,000     183,475
CITIGROUP INC SUB NOTES   Corporate Debt Obligation   260,000     301,826
               

18

CITIZENS COMMUNICATIONS CO 9.000% DTD 02/15/2002 DUE 15AUG2031   Corporate Debt Obligation   35,000     40,966
COCA COLA CO 5.75% DTD 30APR1999 DUE 30APR2009   Corporate Debt Obligation   360,000     394,596
COMCAST CABLE COMMUNICAT 6.750% DTD 16JAN2001 DUE 30JAN2011   Corporate Debt Obligation   815,000     847,991
COMED FUNDING LLC SERIES 1998 SERIES A-5   Corporate Debt Obligation   345,000     362,536
COMED TRANSITIONAL FUNDING TRUST SERIES 1998-1 CLASS A-6   Corporate Debt Obligation   1,135,000     1,238,637
CONAGRA FOODS INC 6.750% DTD 10SEP2001 DUE 15SEP2011   Corporate Debt Obligation   140,000     159,202
CONOCO FUNDING INC 5.450% DTD 11OCT2001 DUE 15OCT2006   Corporate Debt Obligation   315,000     340,002
CONOCO INC NT DTD 04/20/1999 6.350% 04/15/2009   Corporate Debt Obligation   105,000     117,942
CONOCOPHILLIPS SERIES 144A   Corporate Debt Obligation   60,000     60,322
CONOCOPHILLIPS SERIES 144A   Corporate Debt Obligation   85,000     84,517
CONSTELLATION ENERGY CORP 7.600% DTD 26MAR2002 DUE 01APR2032   Corporate Debt Obligation   95,000     97,100
CORPORATE PPTY INVS 7.180% DTD 02SEP1993 DUE 01SEP2013   Corporate Debt Obligation   265,000     292,096
CORPORATE PROPERTY INVS NT 144A 7.875% 03/15/2016   Corporate Debt Obligation   165,000     189,240
COX COMMUNICATIONS INC 6.750% DTD 09MAR2001 DUE 15MAR2011   Corporate Debt Obligation   45,000     48,419
DAIMLER CHRYSLER AUTO TRUST SERIES 2002-C CL A3   Corporate Debt Obligation   180,000     182,043
DEVON FING CORP U L C 7.875% DTD 03OCT2001 DUE 30SEP2031   Corporate Debt Obligation   200,000     235,544
DOW CHEM CO DTD 11/01/1999 7.375% 11/01/2029   Corporate Debt Obligation   220,000     238,060
DOW CHEM 5.750% DTD 13NOV2001 DUE 15DEC2008   Corporate Debt Obligation   750,000     782,618
DOW CHEMICAL 6.000% DTD 29AUG2002 DUE 01OCT2012   Corporate Debt Obligation   170,000     173,740
DUKE CAP CORP 6.250% DTD 15FEB2002 DUE 15FEB2013   Corporate Debt Obligation   40,000     35,631
DUKE ENERGY FIELD SERVICES 7.875% DTD 16AUG2000 DUE 16AUG2010   Corporate Debt Obligation   160,000     169,331
EOP OPERATING LP 6.750% DTD 02/15/2002 MAT 02/15/2012   Corporate Debt Obligation   155,000     166,555
ERP OPER LTD PARTNERSHIP NT PUTABLE/CALLABLE   Corporate Debt Obligation   515,000     547,625
FINANCEMENT QUEBEC 5.000% DTD 25OCT2002 DUE 25OCT2012   Corporate Debt Obligation   335,000     342,906
FIRST CHICAGO CORP SUB NT DTD 01/26/1994   Corporate Debt Obligation   75,000     83,660
FMR CORP DEB 144A   Corporate Debt Obligation   365,000     438,821
FMR CORP NT 144A   Corporate Debt Obligation   10,000     11,509
FORD CREDIT AUTO OWNER TRUST SERIES 2002-A CL A3A   Corporate Debt Obligation   175,000     178,472
FORD MOTOR CR CO 10/28/1999 7.375% 10/28/2009   Corporate Debt Obligation   295,000     292,304
FORD MOTOR CRED 7.750% DTD 15FEB2000 DUE 15FEB2007   Corporate Debt Obligation   750,000     769,665
FORD MTR CO DEL DEB DTD 09/30/1998 6.625% 10/01/2008   Corporate Debt Obligation   140,000     111,626
FORD MTR CO DEL GLOBAL LANDMARK SECS-GLOBLS   Corporate Debt Obligation   150,000     130,481
FORD MTR CR CO NT   Corporate Debt Obligation   75,000     69,562
FOSTERS BREWING GROUP LTD 6.875% DTD 15JUN2001 DUE 15JUN2011   Corporate Debt Obligation   675,000     768,238
GENERAL ELEC CAP CORP MED TERM NTS TRANCHE # TR 00443   Corporate Debt Obligation   750,000     871,148
GENERAL ELEC CAP CORP MEDIUM TERM NTS   Corporate Debt Obligation   525,000     580,435
GENERAL ELECTRIC CAP CORP 5.450% DTD 06DEC2002 DUE 15JAN2013   Corporate Debt Obligation   450,000     467,433
GENERAL MLS INC 3.875% DTD 20NOV2002 DUE 30NOV2007   Corporate Debt Obligation   315,000     318,141
GENERAL MOTORS ACCEPT CORP 7.750% DTD 19JAN2000 DUE 19JAN2010   Corporate Debt Obligation   750,000     785,168
GENERAL MOTORS ACCEPT CORP 8.00% DTD 02NOV01 DUE 01NOV2031   Corporate Debt Obligation   400,000     402,176
GENERAL MOTORS ACCEPTANCE CORP 6.875% DTD 29AUG2002 DUE 28AUG2012   Corporate Debt Obligation   395,000     389,371
GENERAL MOTORS 7.200% DTD 11JAN2001 DUE 15JAN2011   Corporate Debt Obligation   105,000     105,440
GOLDMAN SACHS GROUP INC 5.700% DTD 27AUG2002 DUE 01SEP2012   Corporate Debt Obligation   215,000     223,609
GOODRICH(B.F.)CO 7.625% DTD 10DEC2002 DUE 15DEC2012   Corporate Debt Obligation   170,000     175,537
GREENWICH CAP CMBS 2002-C1 TRANCHE A-3   Corporate Debt Obligation   830,000     833,502
GTE CORP DEB 6.940% 04/15/2028   Corporate Debt Obligation   55,000     57,709
               

19

HARMAN INTERNATIONAL INDUSTRIES,INC 7.125% DTD 19FEB2002 DUE 15FEB2007   Corporate Debt Obligation   65,000     68,491
HEINZ(H.J.)CO SERIES 144A   Corporate Debt Obligation   165,000     186,726
HJ HEINZ FINANCE CO SERIES 144A   Corporate Debt Obligation   135,000     146,602
HONDA AUTO RECEIVABLES OWNER TRST 3.50% DTD 29JAN2002 DUE 15OCT2005   Corporate Debt Obligation   180,000     183,350
HOUSEHOLD FIN CORP 6.750% DTD 09MAY2001 DUE 15MAY2011   Corporate Debt Obligation   215,000     229,231
HOUSEHOLD FIN CORP NT 6.400% 06/17/2008   Corporate Debt Obligation   150,000     159,951
HOUSEHOLD FINANCE 6.500% DTD 24JAN2001 DUE 24JAN2006   Corporate Debt Obligation   165,000     175,712
HRPT PPTYS TR 6.500% DTD 06DEC2002 DUE 15JAN2013   Corporate Debt Obligation   105,000     107,084
HYATT EQUITIES LLC SERIES 144A   Corporate Debt Obligation   85,000     84,659
J P MORGAN CHASE & CO 6.750% DTD 30JAN2001 DUE 01FEB2011   Corporate Debt Obligation   85,000     92,414
JP MORGAN CHASE COMMERCIAL MORTGAGE SERIES 2002-C1 CLASS A2   Corporate Debt Obligation   700,000     731,346
JP MORGAN CHASE 5.350% DTD 06MAR2002 DUE 01MAR2007   Corporate Debt Obligation   50,000     52,890
KERR MCGEE CORP 5.375% DTD 12APR2002 DUE 15APR2005   Corporate Debt Obligation   770,000     811,903
KINDER MORGAN SERIES 144A   Corporate Debt Obligation   125,000     130,634
KRAFT FOODS INC 5.625% DTD 11/02/2001 MAT 11/01/2011   Corporate Debt Obligation   85,000     90,870
KROGER CO SR NT SER B   Corporate Debt Obligation   90,000     102,911
LASMO USA INC GTD NT 7.500% 06/30/2006   Corporate Debt Obligation   1,350,000     1,533,506
LOCKHEED MARTIN CORP NT DTD 05/01/1996 7.75% 05/01/2026   Corporate Debt Obligation   260,000     315,944
MARATHON OIL CORP 6.000% DTD 21JUN2002 DUE 01JUL2012   Corporate Debt Obligation   750,000     791,025
MERRILL LYNCH & CO,INC 4.000% DTD 15NOV2002 DUE 15NOV2007   Corporate Debt Obligation   350,000     353,570
MMCA AUTO OWNER TR 2002-3 ASSET BKD NT CL A-3   Corporate Debt Obligation   385,000     390,763
MORGAN J P & CO MEDIUM TERM NTS TRANCHE #SB 00022   Corporate Debt Obligation   60,000     63,029
NORFOLK SOUTHN CORP NT DTD 04/26/1999 6.200% 04/15/2009   Corporate Debt Obligation   235,000     259,670
PECO ENERGY TRANSITION TRUST 1999-A SERIES A-4   Corporate Debt Obligation   245,000     260,151
PHILLIPS PETROLEUM 8.500% DTD 25MAY2000 DUE 25MAY2005   Corporate Debt Obligation   1,500,000     1,705,680
PROCTER & GAMBLE CO DEB 8.000% 09/01/2024   Corporate Debt Obligation   540,000     701,536
PROCTER & GAMBLE PROFIT SHARING TR GTD ESOP DEB SER A   Corporate Debt Obligation   105,000     144,362
PRUDENTIAL INS CO AMER 8.300% 07/01/2025   Corporate Debt Obligation   150,000     167,558
PS&G TRANSITION FINDING LLC SERIES 2001-1 CL A7   Corporate Debt Obligation   275,000     314,839
PSEG POWER LLC 8.625% DTD 10/15/2001 DUE 15APR2031   Corporate Debt Obligation   35,000     37,687
PULTE CORP 7.300% 10/24/2005   Corporate Debt Obligation   110,000     117,593
RAYTHEON CO DTD 11/04/1998 6.150% 11/01/2008   Corporate Debt Obligation   75,000     80,912
RUSSELL FRANK CO GTD NT 144A   Corporate Debt Obligation   1,000,000     1,090,380
SAFEWAY INC 3.800% DTD 12AUG2002 DUE 15AUG2005   Corporate Debt Obligation   100,000     101,362
SAFEWAY INC 6.150% DTD 05MAR2001 01MAR2006   Corporate Debt Obligation   750,000     812,280
SEARS ROEBUCK ACCEP CORP MTNBE 6.700% DTD 25MAR2002 DUE 15APR2012   Corporate Debt Obligation   15,000     14,238
SPIEKER PPTYS L P NT DTD 05/11/1999 7.250% 05/01/2009   Corporate Debt Obligation   275,000     298,947
SPRINT CAP CORP DTD 11/16/1998 6.875% 11/15/2028   Corporate Debt Obligation   45,000     36,225
SPRINT CAP CORP DTD 11/16/1998 6.875% 11/15/2028   Corporate Debt Obligation   350,000     281,750
SPRINT CAP CORP NT DTD 05/06/1999 6.900% 05/01/2019   Corporate Debt Obligation   110,000     90,200
SPRINT CAPITAL CORP. 6.000% DTD 15JAN2002 DUE 15JAN2007   Corporate Debt Obligation   45,000     42,525
TARGET CORP 7.500% DTD 10AUG2000 DUE 15AUG2010   Corporate Debt Obligation   100,000     118,709
TECO ENERGY INC 7.200% DTD 01MAY2001 DUE 01MAY2011   Corporate Debt Obligation   295,000     252,225
TIAA GLOBAL MARKETS 4.125% DTD 31OCT2002 DUE 15NOV2007   Corporate Debt Obligation   250,000     258,595
TYSON FOODS,INC(DEL.) 8.250% DTD 01APR2002 DUE 01OCT2011   Corporate Debt Obligation   40,000     47,292
U S AIR INC ENHANCED EQUIPMENT NT CL   Corporate Debt Obligation   639,216     543,646
               

20

VALERO ENERGY CORP 7.500% DTD 15APR2002 DUE 15APR2032   Corporate Debt Obligation   245,000     248,170
VERIZON GLOBAL FDG CORP 7.250% DTD 06/01/2001 DUE 01DEC2010   Corporate Debt Obligation   750,000     852,398
VERIZON GLOBAL 6.875% DTD 21JUN2002 DUE 15JUN2012   Corporate Debt Obligation   60,000     66,918
VERIZON NEW YORK INC 6.875% DTD 28MAR2002 DUE 01APR2012   Corporate Debt Obligation   65,000     73,020
VERIZON WIRELESS INC 5.375% DTD 15JUN2002 DUE 15DEC2006   Corporate Debt Obligation   750,000     783,518
VIACOM INC 6.400% DTD 17JAN2001 DUE 30JAN2006   Corporate Debt Obligation   190,000     209,766
VIACOM INC 7.700% DTD 01AUG2000 DUE 30JUL2010   Corporate Debt Obligation   1,000,000     1,188,040
VIRGINIA ELECTRIC & POWER CO 5.375% DTD 30JAN2002 DUE 01FEB2007   Corporate Debt Obligation   55,000     58,273
WAL MART STORES INC NT 6.875% 08/10/2009   Corporate Debt Obligation   165,000     194,365
WASHINGTON MUT INC 5.625% DTD 11JAN2002 DUE 15JAN2007   Corporate Debt Obligation   115,000     123,066
WELLS FARGO & CO 5.00% DTD 06NOV02 DUE 15NOV2014   Corporate Debt Obligation   80,000     80,806
WELLS FARGO FINL INC 4.875% DTD 12JUN2002 DUE 12JUN2007   Corporate Debt Obligation   120,000     127,691
WESTINGHOUSE CR CORP NT DTD 06/14/1990 8.875% 06/14/2014   Corporate Debt Obligation   100,000     125,675
WESTVACO CORP NT DTD 01/18/2000 8.200% 01/15/2030   Corporate Debt Obligation   80,000     92,989
WEYERHAEUSER CO 5.25% DTD 17DEC2002 DUE 15DEC2009   Corporate Debt Obligation   395,000     399,404
WEYERHAEUSER CO 7.375% DTD 15SEP2002 DUE 15MAR2032   Corporate Debt Obligation   20,000     21,691
FANNIE MAE 4.250% DTD 22JUL2002 DUE 15JUL2007   Federal Agency Obligation   150,000     158,157
FANNIE MAE 5.500% DTD 18JUL2001 DUE 18JUL2006   Federal Agency Obligation   380,000     388,075
FEDERAL HOME BKS 4.125% DTD 15NOV2001 DUE 15NOV2006   Federal Agency Obligation   350,000     367,938
FEDERAL HOME LN BKS 2.125% DTD 10DEC2002 DUE 15DEC2004   Federal Agency Obligation   1,300,000     1,307,722
FEDERAL HOME LN MTG CORP DTD 03/12/1999 5.750% 03/15/2009   Federal Agency Obligation   605,000     679,300
FEDERAL HOME LN MTG CORP MULTICLASS MTG PARTN CTFS GTD   Federal Agency Obligation   240,000     246,041
FEDERAL HOME LN MTG CORP MULTICLASS MTG PARTN CTFS GTD   Federal Agency Obligation   605,000     615,237
FEDERAL HOME LN MTG CORP MULTICLASS MTG PARTN CTFS GTD   Federal Agency Obligation   270,000     301,520
FEDERAL HOME LN MTG CORP MULTICLASS MTG PARTN CTFS GTD   Federal Agency Obligation   280,000     287,554
FEDERAL HOME LN MTG CORP MULTICLASS MTG PARTN CTFS GTD   Federal Agency Obligation   230,000     240,081
FEDERAL HOME LN MTG CORP PARTN CTF GROUP #C00785   Federal Agency Obligation   37,261     38,835
FEDERAL HOME LN MTG CORP PARTN CTF GROUP #C71284   Federal Agency Obligation   6,460,139     6,732,176
FEDERAL HOME LN MTG CORP PARTN CTF GROUP #E81915   Federal Agency Obligation   133,066     142,006
FEDERAL HOME LN MTG CORP PARTN CTF GROUP #G00958   Federal Agency Obligation   869,470     906,666
FEDERAL HOME LN MTG CORP PARTN CTF GROUP #W10001   Federal Agency Obligation   320,000     345,600
FEDERAL HOME LN MTG CORP TBA GOLD 5.500% 01/19/2030   Federal Agency Obligation   1,265,000     1,289,111
FEDERAL HOME LN MTG CORP TBA GOLD 6.500% 01/01/2033   Federal Agency Obligation   485,000     505,006
FEDERAL HOME LOAN MORTGAGE CORP 4.500% DTD 04/15/2002 MAT 04/15/2005   Federal Agency Obligation   140,000     141,138
FEDERAL JUDICIARY OFFICE BLDG DTD 08/03/1988 10.35% 08/03/2018   Federal Agency Obligation   325,000     508,830
FEDERAL NATIONAL MORTGAGE ASSOCIATION 5.500% DTD 23FEB2001 DUE 15FEB2006   Federal Agency Obligation   305,000     333,594
FEDERAL NATIONAL MORTGAGE ASSOCIATION 6.625% DTD 13OCT2000 DUE 15OCT2007   Federal Agency Obligation   420,000     486,280
               

21

FEDERAL NATIONAL MORTGAGE ASSOCIATION 7.250% DTD 05MAY2000 DUE 15MAY2030   Federal Agency Obligation   140,000     176,093
FEDERAL NATIONAL MORTGAGE ASSOCIATION TBA 5.000% DTD 01NOV2002 DUE 01JAN2018   Federal Agency Obligation   525,000     537,632
FEDERAL NATL MTG ASSN 30YR 5.500% 02/14/2030   Federal Agency Obligation   4,665,000     4,736,421
FEDERAL NATL MTG ASSN 5.375% DTD 11/23/2001 MAT 11/15/2011   Federal Agency Obligation   145,000     157,189
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #253394   Federal Agency Obligation   147,621     159,072
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #253635   Federal Agency Obligation   293,166     312,035
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #253943   Federal Agency Obligation   50,206     53,081
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #253947   Federal Agency Obligation   190,940     205,258
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #254261   Federal Agency Obligation   696,719     735,227
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #509701   Federal Agency Obligation   15,644     16,622
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #512673   Federal Agency Obligation   120,244     127,763
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #535988   Federal Agency Obligation   486,083     511,281
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #535996   Federal Agency Obligation   2,558,465     2,717,218
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #541427   Federal Agency Obligation   220,004     231,473
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #545996   Federal Agency Obligation   6,627,386     6,970,950
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #550791   Federal Agency Obligation   25,146     26,457
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #588104   Federal Agency Obligation   42,815     44,819
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #592889   Federal Agency Obligation   467,186     489,059
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #612859   Federal Agency Obligation   728,202     765,952
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #614334   Federal Agency Obligation   61,708     64,907
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #621398   Federal Agency Obligation   301,916     317,559
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #627637   Federal Agency Obligation   40,139     42,357
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #630613   Federal Agency Obligation   122,972     129,343
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #634503   Federal Agency Obligation   315,531     332,971
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #640180   Federal Agency Obligation   387,832     405,839
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #647725   Federal Agency Obligation   948,413     992,448
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #655114   Federal Agency Obligation   234,080     248,521
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #F069OB   Federal Agency Obligation   290,000     298,369
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #F070PG   Federal Agency Obligation   710,000     728,780
FEDERAL NATL MTG ASSN GTD REMIC PASS THRU CTF REMIC TR   Federal Agency Obligation   205,000     209,184
FEDERAL NATL MTG ASSN REMIC TR 1997-M5 CL-C   Federal Agency Obligation   445,000     498,418
FEDERAL NATL MTG ASSN REMIC TR 2001-51 CL PC   Federal Agency Obligation   480,000     488,726
FEDERAL NATL MTG ASSN SER N DTD 05/11/1998 6.000%   Federal Agency Obligation   905,000     1,025,193
FEDERAL NATL MTG ASSN TBA 5.500% 01/01/2014   Federal Agency Obligation   2,505,000     2,595,030
FEDERAL NATL MTG ASSN TBA 6.00% 01/01/2030   Federal Agency Obligation   4,155,000     4,293,943
FEDERAL NATL MTG ASSN TBA 6.00% 02/01/2030   Federal Agency Obligation   16,000,000     16,475,040
FEDERAL NATL MTG ASSN TBA 6.500% 01/01/2030   Federal Agency Obligation   11,000,000     11,450,340
               

22

FHLMC REMIC SERIES 005 TRANCHE A6   Federal Agency Obligation   192,669     206,240
FHLMC REMIC SERIES SERIES T-42 CLASS A2   Federal Agency Obligation   170,000     176,933
FINANCING CORP BD 9.40% 02/08/2018   Federal Agency Obligation   230,000     334,721
FREDDIE MAC 6.000% DTD 29MAY2002 DUE 25MAY2012   Federal Agency Obligation   325,000     339,424
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION TBA   Federal Agency Obligation   345,000     357,938
GOVERNMENT NATL MTG ASSN PASS THRU CTF POOL #569780   Federal Agency Obligation   148,647     157,588
GOVERNMENT NATL MTG ASSN TBA 6.000% 01/25/2030   Federal Agency Obligation   660,000     686,400
GOVERNMENT NATL MTG ASSN TBA 6.500% 01/25/2030   Federal Agency Obligation   1,385,000     1,452,519
GOVERNMENT NATL MTG ASSN TBA 7.000% 01/25/2030   Federal Agency Obligation   1,230,000     1,303,037
GOVERNMENT NATL MTG ASSN TBA 8.000% 01/25/2030   Federal Agency Obligation   1,180,000     1,272,925
STUDENT LN MKTG ASSN 3.375% DTD 06/14/2002 MAT 07/15/2004   Federal Agency Obligation   1,145,000     1,175,778
BRITISH COLUMBIA PROV CDA 4.625% DTD 03OCT2001 DUE 03OCT2006   Foreign Corporate Debt Obligation   190,000     201,645
BRITISH TELECOMMUNICATIONS 7.625% DTD 12DEC2000 DUE 15DEC2005   Foreign Corporate Debt Obligation   220,000     248,094
BURLINGTON RES FIN CO 7.400% DTD 01JUN2002 DUE 01DEC2031   Foreign Corporate Debt Obligation   750,000     879,330
DEUTSCHE TELEKOM INT FIN 9.250% DTD 29MAY2002 DUE 01JUN2032   Foreign Corporate Debt Obligation   140,000     177,596
FRANCE TELECOM SERIES W.I.   Foreign Corporate Debt Obligation   195,000     237,379
KOREA DEVELOPMENT BANK 4.250% DTD 13NOV2002 DUE 13NOV2007   Foreign Corporate Debt Obligation   70,000     71,073
PETRONAS CAPITAL LTD SERIES 144A   Foreign Corporate Debt Obligation   170,000     185,125
VODAFONE GROUP PLC NOTES   Foreign Corporate Debt Obligation   1,000,000     1,179,380
AFRICAN DEV BANK SUB 8.80% 09/01/2019   Foreign Government Obligation   125,000     168,138
INTERNATIONAL BK FOR RECON & DEV US# GLO9BAL NOTE   Foreign Government Obligation   300,000     324,000
MEXICAN UNITED STATES 8.000% DTD 24SEP2002 DUE 24SEP2022   Foreign Government Obligation   185,000     191,475
NEW BRUNSWICK(PROVINCE OF),CANADA 3.500% DTD 23OCT2002 DUE 23OCT2007   Foreign Government Obligation   260,000     264,082
NOVA SCOTIA(PROVINCE OF),CANADA 5.750% DTD 26FEB2002 DUE 27FEB2012   Foreign Government Obligation   130,000     142,715
ONTAIO PROV CDA DTD 08/04/1995 7.000% 08/04/2005   Foreign Government Obligation   310,000     345,861
QUEBEC PROV CDA 7.500% 09/15/2029   Foreign Government Obligation   240,000     299,316
QUEBEC PROV CDA GLOBAL BD   Foreign Government Obligation   245,000     279,888
UNITED MEXICAN STATES 8.300% DTD 13AUG1993 DUE 15AUG2031   Foreign Government Obligation   110,000     116,050
BANK OF AMERICA JENNISON #01-155   Guaranteed Investment Contract   101,360,850     101,360,850
CAISSE DES DEPOTS (CDC) BRIC #240-05   Guaranteed Investment Contract   10,023,156     10,023,156
JACKSON NATIONAL LIFE #G-1171-2   Guaranteed Investment Contract   7,024,928     7,024,928
METROPOLITAN LIFE INS CO CONTRACT #28459   Guaranteed Investment Contract   98,183,469     98,183,469
MONUMENTAL LIFE INS CO GIC MDA00273   Guaranteed Investment Contract   90,710,575     90,710,575
MONUMENTAL LIFE INSURANCE CONTRACT#MDA00225TR   Guaranteed Investment Contract   11,627,457     11,627,457
MONUMENTAL LIFE GIC# MDA00108 6.630% 01/01/2025   Guaranteed Investment Contract   44,914,683     44,914,683
MORGAN GUARANTY TRUST CO #433122-Z   Guaranteed Investment Contract   90,132,441     90,132,441
PRUDENTIAL GA-10025-212 01/31/2003   Guaranteed Investment Contract   6,306,200     6,306,200
               

23

STATE STREET BANK & TRUST 99040 4.930% 07/02/2001   Guaranteed Investment Contract   139,778,330     139,778,330
UBS INC CONTRACT #5060   Guaranteed Investment Contract   152,929,557     152,929,557
QSIP OUTSTANDING LOANS TO PARTICIPANTS   Loans with interest ranging from 4.62% to 11.75%)   85,400,067     85,400,067
*BGI MONEY MARKET FUND FOR EBT   Money Market Fund   71     71
*BGI EQUITY INDEX FUND F   Pooled Common Stock   48,187,384     575,357,367
*CAP GUARDIAN INT'L EQUITY   Pooled Common Stock   26,938,648     191,533,790
*MELLON DAILY LIQUIDITY ASSET ALLOCATION FUND   Pooled Common Stock   542,086     44,618,571
*PYRAMID DIRECTED ACCOUNT CASH FUND   Pooled Temporary Investment (cost of $109,564,486)   109,564,486     109,564,486
U.S. GOVERNMENT TREASURY NOTES 3.000% DTD 30NOV2001 DUE 30NOV2003   U S Treasury Obligation   295,000     299,702
U.S. GOVERNMENT TREASURY NOTES 6.125% DTD 15AUG1997 DUE 15AUG2007   U S Treasury Obligation   70,000     80,500
UNITED STATES TREAS BD BD DTD 11/16/1998 5.250% 11/15/2028   U S Treasury Obligation   1,835,000     1,916,437
UNITED STATES TREAS BD DTD 02/16/1999 5.250% 02/15/2029   U S Treasury Obligation   6,810,000     7,116,450
UNITED STATES TREAS BDS DTD 02/15/1985 11.250% 02/15/2015   U S Treasury Obligation   340,000     566,206
UNITED STATES TREAS BDS DTD 02/15/1986 9.250% 02/15/2016   U S Treasury Obligation   885,000     1,313,393
UNITED STATES TREAS BDS DTD 08/15/1983 12.000% 08/15/2013   U S Treasury Obligation   4,860,000     7,077,375
UNITED STATES TREAS BDS DTD 08/15/1987 8.875% DUE 08/15/2017   U S Treasury Obligation   670,000     979,245
UNITED STATES TREAS BDS DTD 08/15/1989 8.125% 08/15/2019   U S Treasury Obligation   1,385,000     1,929,045
UNITED STATES TREAS BDS DTD 11/15/1988 9.000% 11/15/2018   U S Treasury Obligation   135,000     200,981
UNITED STATES TREAS BDS DTD 11/17/1980 12.750% 11/15/2010   U S Treasury Obligation   3,595,000     4,653,296
UNITED STATES TREAS NOTES DTD 05/15/1995 6.500% 05/15/2005   U S Treasury Obligation   100,000     111,000
UNITED STATES TREAS NTS 2.00% DTD 02DEC2002 DUE 30NOV2004   U S Treasury Obligation   620,000     625,233
UNITED STATES TREAS NTS 2.875% DTD 30JUN2002 DUE 30JUN2004   U S Treasury Obligation   150,000     153,329
UNITED STATES TREAS NTS 3.000% DTD 15NOV2002 DUE 15NOV2007   U S Treasury Obligation   705,000     713,594
UNITED STATES TREAS NTS 3.375% DTD 30APR2002 DUE 30APR2004   U S Treasury Obligation   2,435,000     2,501,208
UNITED STATES TREAS NTS 4.000% DTD 15NOV2002 DUE 15NOV2012   U S Treasury Obligation   50,000     50,703
UNITED STATES TREAS NTS DTD 05/15/1999 5.500% 05/15/2009   U S Treasury Obligation   190,000     215,591
UNITED STATES TREAS NTS DTD 08/16/1999 6.00% MAT 08/15/2009   U S Treasury Obligation   300,000     348,844
UNITED STATES TREAS NTS DTD 11/15/1998 4.750% 11/15/2008   U S Treasury Obligation   1,470,000     1,604,597
UNITED STATES TREAS SEC STRIPPED INT PMT   U S Treasury Obligation   2,300,000     875,012
UNITED STATES TREASURY BOND 5.375% DTD 15FEB2001 DUE 15FEB2031   U S Treasury Obligation   315,000     343,448
UNITED STATES TREASURY NOTE 3.500% DTD 15NOV2001 DUE 15NOV2006   U S Treasury Obligation   1,310,000     1,363,225
Self-Directed Personal Choice Retirement Account:              
*QWEST COMMUNICATIONS INTERNATIONAL INC.   Common Stock   30,554     152,770
GOVERNMENT SECURITIES   U. S. Government Obligations         147,056
OTHER MARKETABLE SECURITIES   Various         86,480,122
*PYRAMID DIRECTED ACCOUNT CASH FUND   Pooled Temporary Investment         77,617
           
Total Investments not including the Plan's Investment in the Master Trust           $ 2,567,314,542
           
*
Represents a party-in-interest

See accompanying independent auditors' report.

24


Qwest Savings & Investment Plan
Schedule H, Line 4i—Schedule of Assets (Held at End of Year)
As of December 30, 2002
Schedule l

Name of Issue, Borrower, Lessor or Similar Party
   Description of Investment
   Shares or
Units
   Current
Values
AT&T CORP CLA A COMMON STOCK   Common Stock   1,702,267   $ 44,344,055
AT&T WIRELESS SVCS INC COMMON STOCK   Common Stock   3,951,260     22,838,283
COMCAST CORP CLASS A CM   Common Stock   2,797,468     66,355,941
*QWEST COMMUNICATIONS INTL INC COM   Common Stock (cost of $1,991,851,449)   83,550,955     426,109,871
AIG SUNAMERICA GLOBAL FIN IX SERIES 144A   Corporate Debt Obligation   1,420,000     1,658,588
ALBERTSONS INC SR DEB 07/27/1999 7.450% 08/01/2029   Corporate Debt Obligation   395,000     437,850
ALLIANT ENERGY RESOURCES 9.750% DTD 12/26/2002 MAT 01/15/2013   Corporate Debt Obligation   160,000     159,166
ALLSTATE CORP DEB DTD 05/26/1998 6.900%   Corporate Debt Obligation   750,000     835,358
AMERADA HESS CORP 7.300% DTD 15AUG2001 DUE 15AUG2031   Corporate Debt Obligation   115,000     125,440
AMERICAN HOME PROD 6.250% DTD 30MAR2001 DUE 15MAR2006   Corporate Debt Obligation   175,000     191,065
AOL TIME WARNER INC 6.875% DTD 08APR2002 DUE 01MAY2012   Corporate Debt Obligation   70,000     74,129
AOL TIME WARNER INC 7.625% DTD 19APR2001 15APR2031   Corporate Debt Obligation   30,000     30,917
AOL TIME WARNER INC 7.700% DTD 08APR2002 DUE 01MAY2032   Corporate Debt Obligation   625,000     652,244
ARCHER-DANIELS-MIDLAND CO 5.875% DTD 01OCT2002 DUE 01OCT2032   Corporate Debt Obligation   100,000     100,199
AT& T WIRELESS SERVICES GROUP 8.75% NTS DTD 03/01/2001 MAT 03/01/2031   Corporate Debt Obligation   205,000     202,530
AT&T BROADBAND CORP 8.375% DTD 18NOV2002 DUE 15MAR2013   Corporate Debt Obligation   275,000     312,818
AT&T CORPORATION 6.500% DTD 31OCT2002 DUE 15MAR2013   Corporate Debt Obligation   140,000     140,843
AT&T CORPORATION SR NTS   Corporate Debt Obligation   45,000     49,732
AT&T WIRELESS GROUP 7.875% DTD 01SEP2001 DUE 01MAR2011   Corporate Debt Obligation   40,000     40,564
AVALONBAY CMNTYS INC MEDIUM TERM NTS TRANCHE # TR 00002   Corporate Debt Obligation   355,000     397,525
BANK OF AMERICA CORP 4.875% DTD 25SEP2002 DUE 15SEP2012   Corporate Debt Obligation   165,000     167,680
BANK OF AMERICA CORP 7.80% DTD 14FEB2000 DUE 15FEB2010   Corporate Debt Obligation   125,000     149,138
BAYERISCHE LANDESBANK GIRO 4.125% DTD 14JAN2002 DUE 14JAN2005   Corporate Debt Obligation   490,000     510,536
BOEING CO 7.950% 08/15/2024   Corporate Debt Obligation   365,000     437,255
BRE PROPERTIES INC 5.950% DTD 12MAR2002 DUE 15MAR2007   Corporate Debt Obligation   130,000     137,146
BURLINGTON NORTHERN SANTA FE 6.750% DTD 15MAY2001 DUE 15JUL2011   Corporate Debt Obligation   145,000     165,039
CALIFORNIA INFRASTRUCTURE & ECONOMIC DEV PG&E SER 1997-1 CTF CL A7   Corporate Debt Obligation   145,000     157,840
CALIFORNIA INFRASTRUCTURE 7 ECONOMI SERIES 1997-1 CLASS A6   Corporate Debt Obligation   165,000     180,201
CAPITAL AUTO RECEIVABLE ASSET TRUST SERIES 2002-3 CL A2A   Corporate Debt Obligation   580,000     591,617
CAPITAL AUTO RECV ABN SERIES 2002-2 CL A3   Corporate Debt Obligation   285,000     292,347
CHARTER ONE BK F S B 6.375% DTD 20MAY2002 DUE 15MAY2012   Corporate Debt Obligation   120,000     132,958
CINGULAR WIRELESS LLC 6.500% DTD 15JUN2002 DUE 15DEC2011   Corporate Debt Obligation   750,000     808,470
CIT GROUP INC 5.500% DTD 12/02/2002 MAT 11/30/2007   Corporate Debt Obligation   85,000     87,018
CITICORP 6.750% 08/15/2005   Corporate Debt Obligation   1,325,000     1,469,836
CITIGROUP INC 5.625% DTD 26AUG2002 DUE 27AUG2012   Corporate Debt Obligation   85,000     89,645
CITIGROUP INC 6.750% DTD 06DEC2000 DUE 01DEC2005   Corporate Debt Obligation   165,000     183,559
CITIGROUP INC SUB NOTES   Corporate Debt Obligation   260,000     302,544
CITIZENS COMMUNICATIONS CO 9.000% DTD 02/15/2002 DUE 15AUG2031   Corporate Debt Obligation   35,000     41,074
COCA COLA CO 5.75% DTD 30APR1999 DUE 30APR2009   Corporate Debt Obligation   360,000     383,220
COMCAST CABLE COMMUNICAT 6.750% DTD 16JAN2001 DUE 30JAN2011   Corporate Debt Obligation   815,000     850,069
COMED FUNDING LLC SERIES 1998 SERIES A-5   Corporate Debt Obligation   345,000     362,685
               

25

COMED TRANSITIONAL FUNDING TRUST SERIES 1998-1 CLASS A-6   Corporate Debt Obligation   1,135,000     1,238,898
CONAGRA FOODS INC 6.750% DTD 10SEP2001 DUE 15SEP2011   Corporate Debt Obligation   140,000     159,645
CONOCO FUNDING INC 5.450% DTD 11OCT2001 DUE 15OCT2006   Corporate Debt Obligation   315,000     340,329
CONOCO INC NT DTD 04/20/1999 6.350% 04/15/2009   Corporate Debt Obligation   105,000     117,522
CONOCOPHILLIPS SERIES 144A   Corporate Debt Obligation   60,000     60,509
CONOCOPHILLIPS SERIES 144A   Corporate Debt Obligation   85,000     84,871
CONSTELLATION ENERGY CORP 7.600% DTD 26MAR2002 DUE 01APR2032   Corporate Debt Obligation   95,000     97,446
CORPORATE PPTY INVS 7.180% DTD 02SEP1993 DUE 01SEP2013   Corporate Debt Obligation   265,000     292,989
CORPORATE PROPERTY INVS NT 144A 7.875% 03/15/2016   Corporate Debt Obligation   165,000     189,894
COX COMMUNICATIONS INC 6.750% DTD 09MAR2001 DUE 15MAR2011   Corporate Debt Obligation   45,000     48,545
DAIMLER CHRYSLER AUTO TRUST SERIES 2002-C CL A3   Corporate Debt Obligation   180,000     182,050
DEVON FING CORP U L C 7.875% DTD 03OCT2001 DUE 30SEP2031   Corporate Debt Obligation   200,000     236,434
DOW CHEM CO DTD 11/01/1999 7.375% 11/01/2029   Corporate Debt Obligation   220,000     238,933
DOW CHEM 5.750% DTD 13NOV2001 DUE 15DEC2008   Corporate Debt Obligation   750,000     783,810
DOW CHEMICAL 6.000% DTD 29AUG2002 DUE 01OCT2012   Corporate Debt Obligation   170,000     174,253
DUKE CAP CORP 6.250% DTD 15FEB2002 DUE 15FEB2013   Corporate Debt Obligation   40,000     35,731
DUKE ENERGY FIELD SERVICES 7.875% DTD 16AUG2000 DUE 16AUG2010   Corporate Debt Obligation   160,000     169,718
EOP OPERATING LP 6.750% DTD 02/15/2002 MAT 02/15/2012   Corporate Debt Obligation   155,000     167,014
ERP OPER LTD PARTNERSHIP NT PUTABLE/CALLABLE   Corporate Debt Obligation   515,000     547,811
FINANCEMENT QUEBEC 5.000% DTD 25OCT2002 DUE 25OCT2012   Corporate Debt Obligation   335,000     343,945
FIRST CHICAGO CORP SUB NT DTD 01/26/1994   Corporate Debt Obligation   75,000     83,793
FMR CORP DEB 144A   Corporate Debt Obligation   365,000     440,493
FMR CORP NT 144A   Corporate Debt Obligation   10,000     11,544
FORD CREDIT AUTO OWNER TRUST SERIES 2002-A CL A3A   Corporate Debt Obligation   175,000     178,509
FORD MOTOR CR CO 10/28/1999 7.375% 10/28/2009   Corporate Debt Obligation   295,000     292,906
FORD MOTOR CRED 7.750% DTD 15FEB2000 DUE 15FEB2007   Corporate Debt Obligation   750,000     770,505
FORD MTR CO DEL DEB DTD 09/30/1998 6.625% 10/01/2008   Corporate Debt Obligation   140,000     111,986
FORD MTR CO DEL GLOBAL LANDMARK SECS-GLOBLS   Corporate Debt Obligation   150,000     130,899
FORD MTR CR CO NT   Corporate Debt Obligation   75,000     69,659
FOSTERS BREWING GROUP LTD 6.875% DTD 15JUN2001 DUE 15JUN2011   Corporate Debt Obligation   675,000     770,324
GENERAL ELEC CAP CORP MED TERM NTS TRANCHE # TR 00443   Corporate Debt Obligation   750,000     872,670
GENERAL ELEC CAP CORP MEDIUM TERM NTS   Corporate Debt Obligation   525,000     580,440
GENERAL ELECTRIC CAP CORP 5.450% DTD 06DEC2002 DUE 15JAN2013   Corporate Debt Obligation   450,000     466,421
GENERAL MLS INC 3.875% DTD 20NOV2002 DUE 30NOV2007   Corporate Debt Obligation   315,000     318,569
GENERAL MOTORS ACCEPT CORP 7.750% DTD 19JAN2000 DUE 19JAN2010   Corporate Debt Obligation   750,000     793,065
GENERAL MOTORS ACCEPT CORP 8.00% DTD 02NOV01 DUE 01NOV2031   Corporate Debt Obligation   400,000     403,084
GENERAL MOTORS ACCEPTANCE CORP 6.875% DTD 29AUG2002 DUE 28AUG2012   Corporate Debt Obligation   395,000     390,446
GENERAL MOTORS 7.200% DTD 11JAN2001 DUE 15JAN2011   Corporate Debt Obligation   105,000     105,376
GOLDMAN SACHS GROUP INC 5.700% DTD 27AUG2002 DUE 01SEP2012   Corporate Debt Obligation   215,000     224,277
GOODRICH(B.F.)CO 7.625% DTD 10DEC2002 DUE 15DEC2012   Corporate Debt Obligation   170,000     176,032
GREENWICH CAP CMBS 2002-C1 TRANCHE A-3   Corporate Debt Obligation   830,000     854,518
GTE CORP DEB 6.940% 04/15/2028   Corporate Debt Obligation   55,000     57,871
HARMAN INTERNATIONAL INDUSTRIES,INC 7.125% DTD 19FEB2002 DUE 15FEB2007   Corporate Debt Obligation   65,000     68,570
HEINZ(H.J.)CO SERIES 144A   Corporate Debt Obligation   165,000     187,237
HJ HEINZ FINANCE CO SERIES 144A   Corporate Debt Obligation   135,000     145,985
HONDA AUTO RECEIVABLES OWNER TRST 3.50% DTD 29JAN2002 DUE 15OCT2005   Corporate Debt Obligation   180,000     183,388
HOUSEHOLD FIN CORP 6.750% DTD 09MAY2001 DUE 15MAY2011   Corporate Debt Obligation   215,000     229,945
HOUSEHOLD FIN CORP NT 6.400% 06/17/2008   Corporate Debt Obligation   150,000     160,179
HOUSEHOLD FINANCE 6.500% DTD 24JAN2001 DUE 24JAN2006   Corporate Debt Obligation   165,000     175,786
HRPT PPTYS TR 6.500% DTD 06DEC2002 DUE 15JAN2013   Corporate Debt Obligation   105,000     107,398
HYATT EQUITIES LLC SERIES 144A   Corporate Debt Obligation   85,000     84,755
               

26

J P MORGAN CHASE & CO 6.750% DTD 30JAN2001 DUE 01FEB2011   Corporate Debt Obligation   85,000     92,649
JP MORGAN CHASE COMMERCIAL MORTGAGE SERIES 2002-C1 CLASS A2   Corporate Debt Obligation   700,000     732,375
JP MORGAN CHASE 5.350% DTD 06MAR2002 DUE 01MAR2007   Corporate Debt Obligation   50,000     52,954
KERR MCGEE CORP 5.375% DTD 12APR2002 DUE 15APR2005   Corporate Debt Obligation   770,000     812,042
KINDER MORGAN SERIES 144A   Corporate Debt Obligation   125,000     131,013
KRAFT FOODS INC 5.625% DTD 11/02/2001 MAT 11/01/2011   Corporate Debt Obligation   85,000     91,129
KROGER CO SR NT SER B   Corporate Debt Obligation   90,000     103,289
LASMO USA INC GTD NT 7.500% 06/30/2006   Corporate Debt Obligation   1,350,000     1,535,355
LOCKHEED MARTIN CORP NT DTD 05/01/1996 7.75% 05/01/2026   Corporate Debt Obligation   260,000     317,080
MARATHON OIL CORP 6.000% DTD 21JUN2002 DUE 01JUL2012   Corporate Debt Obligation   750,000     793,358
MERRILL LYNCH & CO,INC 4.000% DTD 15NOV2002 DUE 15NOV2007   Corporate Debt Obligation   350,000     354,039
MMCA AUTO OWNER TR 2002-3 ASSET BKD NT CL A-3   Corporate Debt Obligation   385,000     390,840
MORGAN J P & CO MEDIUM TERM NTS TRANCHE #SB 00022   Corporate Debt Obligation   60,000     63,124
NORFOLK SOUTHN CORP NT DTD 04/26/1999 6.200% 04/15/2009   Corporate Debt Obligation   235,000     257,118
PECO ENERGY TRANSITION TRUST 1999-A SERIES A-4   Corporate Debt Obligation   245,000     260,239
PHILLIPS PETROLEUM 8.500% DTD 25MAY2000 DUE 25MAY2005   Corporate Debt Obligation   1,500,000     1,706,325
PROCTER & GAMBLE CO DEB 8.000% 09/01/2024   Corporate Debt Obligation   540,000     703,442
PROCTER & GAMBLE PROFIT SHARING TR GTD ESOP DEB SER A   Corporate Debt Obligation   105,000     143,082
PRUDENTIAL INS CO AMER 8.300% 07/01/2025   Corporate Debt Obligation   150,000     167,976
PS&G TRANSITION FINDING LLC SERIES 2001-1 CL A7   Corporate Debt Obligation   275,000     315,587
PSEG POWER LLC 8.625% DTD 10/15/2001 DUE 15APR2031   Corporate Debt Obligation   35,000     37,783
PULTE CORP 7.300% 10/24/2005   Corporate Debt Obligation   110,000     117,633
RAYTHEON CO DTD 11/04/1998 6.150% 11/01/2008   Corporate Debt Obligation   75,000     81,036
RUSSELL FRANK CO GTD NT 144A   Corporate Debt Obligation   1,000,000     1,078,730
SAFEWAY INC 3.800% DTD 12AUG2002 DUE 15AUG2005   Corporate Debt Obligation   100,000     101,372
SAFEWAY INC 6.150% DTD 05MAR2001 01MAR2006   Corporate Debt Obligation   750,000     812,655
SEARS ROEBUCK ACCEP CORP MTNBE 6.700% DTD 25MAR2002 DUE 15APR2012   Corporate Debt Obligation   15,000     14,277
SPIEKER PPTYS L P NT DTD 05/11/1999 7.250% 05/01/2009   Corporate Debt Obligation   275,000     299,412
SPRINT CAP CORP DTD 11/16/1998 6.875% 11/15/2028   Corporate Debt Obligation   45,000     36,225
SPRINT CAP CORP DTD 11/16/1998 6.875% 11/15/2028   Corporate Debt Obligation   350,000     281,750
SPRINT CAP CORP NT DTD 05/06/1999 6.900% 05/01/2019   Corporate Debt Obligation   110,000     90,200
SPRINT CAPITAL CORP. 6.000% DTD 15JAN2002 DUE 15JAN2007   Corporate Debt Obligation   45,000     42,525
TARGET CORP 7.500% DTD 10AUG2000 DUE 15AUG2010   Corporate Debt Obligation   100,000     118,972
TECO ENERGY INC 7.200% DTD 01MAY2001 DUE 01MAY2011   Corporate Debt Obligation   295,000     252,225
TIAA GLOBAL MARKETS 4.125% DTD 31OCT2002 DUE 15NOV2007   Corporate Debt Obligation   250,000     258,948
TYSON FOODS,INC(DEL.) 8.250% DTD 01APR2002 DUE 01OCT2011   Corporate Debt Obligation   40,000     47,420
U S AIR INC ENHANCED EQUIPMENT NT CL   Corporate Debt Obligation   639,216     544,011
VALERO ENERGY CORP 7.500% DTD 15APR2002 DUE 15APR2032   Corporate Debt Obligation   245,000     249,057
VERIZON GLOBAL FDG CORP 7.250% DTD 06/01/2001 DUE 01DEC2010   Corporate Debt Obligation   750,000     854,528
VERIZON GLOBAL 6.875% DTD 21JUN2002 DUE 15JUN2012   Corporate Debt Obligation   60,000     67,108
VERIZON NEW YORK INC 6.875% DTD 28MAR2002 DUE 01APR2012   Corporate Debt Obligation   65,000     73,224
VERIZON WIRELESS INC 5.375% DTD 15JUN2002 DUE 15DEC2006   Corporate Debt Obligation   750,000     784,418
VIACOM INC 6.400% DTD 17JAN2001 DUE 30JAN2006   Corporate Debt Obligation   190,000     207,890
VIACOM INC 7.700% DTD 01AUG2000 DUE 30JUL2010   Corporate Debt Obligation   1,000,000     1,190,610
VIRGINIA ELECTRIC & POWER CO 5.375% DTD 30JAN2002 DUE 01FEB2007   Corporate Debt Obligation   55,000     58,343
WAL MART STORES INC NT 6.875% 08/10/2009   Corporate Debt Obligation   165,000     194,707
WASHINGTON MUT INC 5.625% DTD 11JAN2002 DUE 15JAN2007   Corporate Debt Obligation   115,000     123,214
WELLS FARGO & CO 5.00% DTD 06NOV02 DUE 15NOV2014   Corporate Debt Obligation   80,000     81,094
WELLS FARGO FINL INC 4.875% DTD 12JUN2002 DUE 12JUN2007   Corporate Debt Obligation   120,000     127,855
WESTINGHOUSE CR CORP NT DTD 06/14/1990 8.875% 06/14/2014   Corporate Debt Obligation   100,000     126,065
               

27

WESTVACO CORP NT DTD 01/18/2000 8.200% 01/15/2030   Corporate Debt Obligation   80,000     93,321
WEYERHAEUSER CO 5.25% DTD 17DEC2002 DUE 15DEC2009   Corporate Debt Obligation   395,000     400,084
WEYERHAEUSER CO 7.375% DTD 15SEP2002 DUE 15MAR2032   Corporate Debt Obligation   20,000     21,772
FANNIE MAE 4.250% DTD 22JUL2002 DUE 15JUL2007   Federal Agency Obligation   150,000     158,438
FANNIE MAE 5.500% DTD 18JUL2001 DUE 18JUL2006   Federal Agency Obligation   380,000     388,193
FEDERAL HOME BKS 4.125% DTD 15NOV2001 DUE 15NOV2006   Federal Agency Obligation   350,000     368,375
FEDERAL HOME LN BKS 2.125% DTD 10DEC2002 DUE 15DEC2004   Federal Agency Obligation   1,300,000     1,307,319
FEDERAL HOME LN MTG CORP DTD 03/12/1999 5.750% 03/15/2009   Federal Agency Obligation   605,000     680,437
FEDERAL HOME LN MTG CORP MULTICLASS MTG PARTN CTFS GTD   Federal Agency Obligation   240,000     246,077
FEDERAL HOME LN MTG CORP MULTICLASS MTG PARTN CTFS GTD   Federal Agency Obligation   605,000     615,394
FEDERAL HOME LN MTG CORP MULTICLASS MTG PARTN CTFS GTD   Federal Agency Obligation   270,000     301,928
FEDERAL HOME LN MTG CORP MULTICLASS MTG PARTN CTFS GTD   Federal Agency Obligation   280,000     287,613
FEDERAL HOME LN MTG CORP MULTICLASS MTG PARTN CTFS GTD   Federal Agency Obligation   230,000     240,111
FEDERAL HOME LN MTG CORP PARTN CTF GROUP #C00785   Federal Agency Obligation   37,261     38,973
FEDERAL HOME LN MTG CORP PARTN CTF GROUP #C71284   Federal Agency Obligation   6,460,139     6,737,086
FEDERAL HOME LN MTG CORP TBA GOLD 5.500% 01/19/2030   Federal Agency Obligation   345,000     352,117
FEDERAL HOME LN MTG CORP PARTN CTF GROUP #E81915   Federal Agency Obligation   133,066     142,013
FEDERAL HOME LN MTG CORP PARTN CTF GROUP #G00958   Federal Agency Obligation   869,470     909,961
FEDERAL HOME LN MTG CORP PARTN CTF GROUP #W10001   Federal Agency Obligation   320,000     346,400
FEDERAL HOME LN MTG CORP TBA GOLD 6.500% 01/01/2033   Federal Agency Obligation   485,000     505,084
FEDERAL HOME LOAN MORTGAGE CORP 4.500% DTD 04/15/2002 MAT 04/15/2005   Federal Agency Obligation   140,000     141,138
FEDERAL JUDICIARY OFFICE BLDG DTD 08/03/1988 10.35% 08/03/2018   Federal Agency Obligation   325,000     510,455
FEDERAL NATIONAL MORTGAGE ASSOCIATION 5.500% DTD 23FEB2001 DUE 15FEB2006   Federal Agency Obligation   305,000     333,499
FEDERAL NATIONAL MORTGAGE ASSOCIATION 6.625% DTD 13OCT2000 DUE 15OCT2007   Federal Agency Obligation   420,000     486,940
FEDERAL NATIONAL MORTGAGE ASSOCIATION 7.250% DTD 05MAY2000 DUE 15MAY2030   Federal Agency Obligation   140,000     175,832
FEDERAL NATL MTG ASSN 30YR 5.500% 02/14/2030   Federal Agency Obligation   4,665,000     4,727,686
FEDERAL NATL MTG ASSN 5.375% DTD 11/23/2001 MAT 11/15/2011   Federal Agency Obligation   145,000     157,643
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #253394   Federal Agency Obligation   147,621     159,079
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #253635   Federal Agency Obligation   293,166     311,929
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #253943   Federal Agency Obligation   50,206     53,068
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #253947   Federal Agency Obligation   190,940     205,245
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #254261   Federal Agency Obligation   696,719     735,074
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #509701   Federal Agency Obligation   15,644     16,638
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #512673   Federal Agency Obligation   120,244     127,882
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #535988   Federal Agency Obligation   486,083     511,417
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #535996   Federal Agency Obligation   2,558,465     2,719,751
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #541427   Federal Agency Obligation   220,004     231,988
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #545996   Federal Agency Obligation   6,627,386     6,972,805
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #550791   Federal Agency Obligation   25,146     26,516
               

28

FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #588104   Federal Agency Obligation   42,815     44,828
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #592889   Federal Agency Obligation   467,186     489,158
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #612859   Federal Agency Obligation   728,202     766,156
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #614334   Federal Agency Obligation   61,708     64,924
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #621398   Federal Agency Obligation   301,916     317,664
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #627637   Federal Agency Obligation   40,139     42,348
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #630613   Federal Agency Obligation   122,972     129,386
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #634503   Federal Agency Obligation   315,531     332,901
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #640180   Federal Agency Obligation   387,832     405,894
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #647725   Federal Agency Obligation   948,413     992,581
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #655114   Federal Agency Obligation   234,080     248,526
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #F069OB   Federal Agency Obligation   290,000     298,445
FEDERAL NATL MTG ASSN GTD MTG PASS THRU CTF POOL #F070PG   Federal Agency Obligation   710,000     728,978
FEDERAL NATL MTG ASSN GTD REMIC PASS THRU CTF REMIC TR   Federal Agency Obligation   205,000     209,215
FEDERAL NATL MTG ASSN REMIC TR 1997-M5 CL-C   Federal Agency Obligation   445,000     498,836
FEDERAL NATL MTG ASSN REMIC TR 2001-51 CL PC   Federal Agency Obligation   480,000     488,856
FEDERAL NATL MTG ASSN SER N DTD 05/11/1998 6.000%   Federal Agency Obligation   905,000     1,026,614
FEDERAL NATL MTG ASSN TBA 5.500% 01/01/2014   Federal Agency Obligation   2,505,000     2,588,366
FEDERAL NATL MTG ASSN TBA 6.00% 01/01/2030   Federal Agency Obligation   4,155,000     4,290,038
FEDERAL NATL MTG ASSN TBA 6.00% 02/01/2030   Federal Agency Obligation   16,000,000     16,490,000
FEDERAL NATL MTG ASSN TBA 6.500% 01/01/2030   Federal Agency Obligation   11,000,000     11,450,340
FHLMC REMIC SERIES 005 TRANCHE A6   Federal Agency Obligation   192,669     206,283
FHLMC REMIC SERIES SERIES T-42 CLASS A2   Federal Agency Obligation   170,000     176,941
FINANCING CORP BD 9.40% 02/08/2018   Federal Agency Obligation   230,000     335,871
FREDDIE MAC 6.000% DTD 29MAY2002 DUE 25MAY2012   Federal Agency Obligation   325,000     339,320
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION TBA   Federal Agency Obligation   345,000     356,940
GOVERNMENT NATL MTG ASSN PASS THRU CTF POOL #569780   Federal Agency Obligation   148,647     157,645
GOVERNMENT NATL MTG ASSN TBA 6.000% 01/25/2030   Federal Agency Obligation   660,000     686,915
GOVERNMENT NATL MTG ASSN TBA 6.500% 01/25/2030   Federal Agency Obligation   1,385,000     1,447,103
GOVERNMENT NATL MTG ASSN TBA 7.000% 01/25/2030   Federal Agency Obligation   1,230,000     1,297,269
GOVERNMENT NATL MTG ASSN TBA 8.000% 01/25/2030   Federal Agency Obligation   1,180,000     1,267,391
STUDENT LN MKTG ASSN 3.375% DTD 06/14/2002 MAT 07/15/2004   Federal Agency Obligation   1,145,000     1,176,488
BRITISH COLUMBIA PROV CDA 4.625% DTD 03OCT2001 DUE 03OCT2006   Foreign Corporate Debt Obligation   190,000     201,879
BRITISH TELECOMMUNICATIONS 7.625% DTD 12DEC2000 DUE 15DEC2005   Foreign Corporate Debt Obligation   220,000     248,369
BURLINGTON RES FIN CO 7.400% DTD 01JUN2002 DUE 01DEC2031   Foreign Corporate Debt Obligation   750,000     882,795
DEUTSCHE TELEKOM INT FIN 9.250% DTD 29MAY2002 DUE 01JUN2032   Foreign Corporate Debt Obligation   140,000     178,083
FRANCE TELECOM SERIES W.I.   Foreign Corporate Debt Obligation   195,000     237,970
KOREA DEVELOPMENT BANK 4.250% DTD 13NOV2002 DUE 13NOV2007   Foreign Corporate Debt Obligation   70,000     70,825
PETRONAS CAPITAL LTD SERIES 144A   Foreign Corporate Debt Obligation   170,000     186,398
VODAFONE GROUP PLC NOTES   Foreign Corporate Debt Obligation   1,000,000     1,182,140
AFRICAN DEV BANK SUB 8.80% 09/01/2019   Foreign Government Obligation   125,000     166,885
INTERNATIONAL BK FOR RECON & DEV US# GLO9BAL NOTE   Foreign Government Obligation   300,000     323,625
MEXICAN UNITED STATES 8.000% DTD 24SEP2002 DUE 24SEP2022   Foreign Government Obligation   185,000     191,475
NEW BRUNSWICK(PROVINCE OF),CANADA 3.500% DTD 23OCT2002 DUE 23OCT2007   Foreign Government Obligation   260,000     264,438
NOVA SCOTIA(PROVINCE OF),CANADA 5.750% DTD 26FEB2002 DUE 27FEB2012   Foreign Government Obligation   130,000     143,125
               

29

ONTAIO PROV CDA DTD 08/04/1995 7.000% 08/04/2005   Foreign Government Obligation   310,000     345,997
QUEBEC PROV CDA 7.500% 09/15/2029   Foreign Government Obligation   240,000     300,216
QUEBEC PROV CDA GLOBAL BD   Foreign Government Obligation   245,000     279,251
UNITED MEXICAN STATES 8.300% DTD 13AUG1993 DUE 15AUG2031   Foreign Government Obligation   110,000     116,600
BANK OF AMERICA JENNISON #01-155   Guaranteed Investment Contract   101,344,225     101,344,225
CAISSE DES DEPOTS (CDC) BRIC #240-05   Guaranteed Investment Contract   10,022,190     10,022,190
JACKSON NATIONAL LIFE #G-1171-2   Guaranteed Investment Contract   7,024,235     7,024,235
METROPOLITAN LIFE INS CO CONTRACT #28459   Guaranteed Investment Contract   98,171,295     98,171,295
MONUMENTAL LIFE INS CO GIC MDA00273   Guaranteed Investment Contract   90,696,654     90,696,654
MONUMENTAL LIFE INSURANCE CONTRACT#MDA00225TR   Guaranteed Investment Contract   11,626,952     11,626,952
MONUMENTAL LIFE GIC# MDA00108 6.630% 01/01/2025   Guaranteed Investment Contract   44,908,294     44,908,294
MORGAN GUARANTY TRUST CO #433122-Z   Guaranteed Investment Contract   90,119,008     90,119,008
PRUDENTIAL GA-10025-212 01/31/2003   Guaranteed Investment Contract   12,610,520     12,610,520
STATE STREET BANK & TRUST 99040 4.930% 07/02/2001   Guaranteed Investment Contract   139,754,039     139,754,039
UBS INC CONTRACT #5060   Guaranteed Investment Contract   152,906,412     152,906,412
*QSIP OUTSTANDING LOANS TO PARTICIPANTS   Loans with interest ranging from 4.62% to 11.75%)   86,837,134     86,837,134
*BGI MONEY MARKET FUND FOR EBT   Money Market Fund   71     71
*BGI EQUITY INDEX FUND F   Pooled Common Stock   48,197,710     574,998,680
*CAP GUARDIAN INT'L EQUITY   Pooled Common Stock   26,942,334     190,482,299
*MELLON DAILY LIQUIDITY ASSET ALLOCATION FUND   Pooled Common Stock   542,404     44,612,204
*PYRAMID DIRECTED ACCOUNT CASH FUND   Pooled Temporary Investment (cost of $105,713,708)   105,713,708     105,713,708
U.S. GOVERNMENT TREASURY NOTES 3.000% DTD 30NOV2001 DUE 30NOV2003   U S Treasury Obligation   295,000     299,794
U.S. GOVERNMENT TREASURY NOTES 6.125% DTD 15AUG1997 DUE 15AUG2007   U S Treasury Obligation   70,000     80,609
UNITED STATES TREAS BD BD DTD 11/16/1998 5.250% 11/15/2028   U S Treasury Obligation   1,835,000     1,922,163
UNITED STATES TREAS BD DTD 02/16/1999 5.250% 02/15/2029   U S Treasury Obligation   6,810,000     7,139,876
UNITED STATES TREAS BDS DTD 02/15/1985 11.250% 02/15/2015   U S Treasury Obligation   340,000     557,600
UNITED STATES TREAS BDS DTD 02/15/1986 9.250% 02/15/2016   U S Treasury Obligation   795,000     1,183,556
UNITED STATES TREAS BDS DTD 08/15/1983 12.000% 08/15/2013   U S Treasury Obligation   4,860,000     7,075,868
UNITED STATES TREAS BDS DTD 08/15/1987 8.875% DUE 08/15/2017   U S Treasury Obligation   670,000     983,225
UNITED STATES TREAS BDS DTD 08/15/1989 8.125% 08/15/2019   U S Treasury Obligation   1,385,000     1,892,689
UNITED STATES TREAS BDS DTD 11/15/1988 9.000% 11/15/2018   U S Treasury Obligation   135,000     201,867
UNITED STATES TREAS BDS DTD 11/17/1980 12.750% 11/15/2010   U S Treasury Obligation   3,595,000     4,653,296
UNITED STATES TREAS NOTES DTD 05/15/1995 6.500% 05/15/2005   U S Treasury Obligation   100,000     111,031
UNITED STATES TREAS NTS 2.00% DTD 02DEC2002 DUE 30NOV2004   U S Treasury Obligation   620,000     625,233
UNITED STATES TREAS NTS 2.875% DTD 30JUN2002 DUE 30JUN2004   U S Treasury Obligation   150,000     153,329
UNITED STATES TREAS NTS 3.000% DTD 15NOV2002 DUE 15NOV2007   U S Treasury Obligation   705,000     714,475
UNITED STATES TREAS NTS 3.375% DTD 30APR2002 DUE 30APR2004   U S Treasury Obligation   2,435,000     2,501,208
UNITED STATES TREAS NTS 4.000% DTD 15NOV2002 DUE 15NOV2012   U S Treasury Obligation   50,000     50,875
UNITED STATES TREAS NTS DTD 05/15/1999 5.500% 05/15/2009   U S Treasury Obligation   190,000     215,946
               

30

UNITED STATES TREAS NTS DTD 11/15/1998 4.750% 11/15/2008   U S Treasury Obligation   1,470,000     1,561,416
UNITED STATES TREAS SEC STRIPPED INT PMT   U S Treasury Obligation   2,300,000     879,727
UNITED STATES TREASURY BOND 5.375% DTD 15FEB2001 DUE 15FEB2031   U S Treasury Obligation   315,000     330,553
UNITED STATES TREASURY NOTE 3.500% DTD 15NOV2001 DUE 15NOV2006   U S Treasury Obligation   1,310,000     1,364,444
Self-Directed Personal Choice Retirement Account:              
*QWEST COMMUNICATIONS INTERNATIONAL INC.   Common Stock   30,554     155,826
GOVERNMENT SECURITIES   U. S. Government Obligations         141,484
OTHER MARKETABLE SECURITIES   Various         86,122,992
*PYRAMID DIRECTED ACCOUNT CASH FUND   Pooled Temporary Investment         32,578
           
Total Investments not including the Plan's Investment in the Master Trust           $ 2,575,087,427
           
*
Represents a party-in-interest

See accompanying independent auditors' report

31


Qwest Savings & Investment Plan
Schedule H, Line 4j—Schedule of Reportable Transactions (a)(b)
For the Year Ended December 30, 2002
Schedule III

Identity of
Party Involved
   Description
of Asset
   Purchase
Price
   Sales
Price
   Expense
Incurred
With
Transaction
   Cost of
Asset
   Current
Value of
Asset on
Transaction
Date
   Net Gain
or Loss
*Deutsche Bank
Trust Company		   Deutsche Bank
Pyramid Directed
Account Cash
Fund		  


$


1,438,581,041		  


$


—		  


$


—		  


$


1,438,581,041		  


$


1,438,581,041		  


$


—
*Deutsche Bank
Trust Company		   Deutsche Bank
Pyramid Directed
Account Cash
Fund		    


—		    


1,388,235,116		    


—		    


1,388,235,116		    


1,388,235,116		    


—
(a)
Represents a series of transactions in excess of 5% of the fair value of Plan net assets at the beginning of the Plan year.

(b)
Includes participant and non-participant directed transactions as non-participant directed information is not separately maintained.

*
Represents a party-in-interest.

See accompanying independent auditors' report.

32


Qwest Savings & Investment Plan
Schedule G, Part III — Schedule of Nonexempt Transactions
For the Year Ended December 30, 2002
Schedule IV

Identity of
Party Involved
   Relationship to Plan, Employer Or Other Party-In- Interest
   Description of Transactions
   Transaction
Amount
  
*Qwest Communications International Inc.   Plan Sponsor   Employee contributions not timely remitted to the Plan for certain pay periods in January through April 2002. Corrected and remitted on December 20, 2002   $ 36,230(a )

*Qwest Communications International Inc.
 
Plan Sponsor
 
Employee contributions not timely remitted to the Plan for certain pay periods in January 2002. Corrected and remitted on March 8, 2002
 
 
99 (b
)

*Qwest Communications International Inc.
 
Plan Sponsor
 
Employee contributions not timely remitted to the Plan for certain pay periods in February 2002. Corrected and remitted on April 5, 2002
 
 
86 (b
)

*Qwest Communications International Inc.
 
Plan Sponsor
 
Employee contributions not timely remitted to the Plan for certain pay periods in April 2002. Corrected and remitted on May 24, 2002
 
 
375 (b
)

*Qwest Communications International Inc.
 
Plan Sponsor
 
Employee contributions not timely remitted to the Plan for certain pay periods in April 2002. Corrected and remitted on June 7, 2002
 
 
81 (b
)

*Qwest Communications International Inc.
 
Plan Sponsor
 
Employee contributions not timely remitted to the Plan for certain pay periods in June 2002. Corrected and remitted on August 16, 2002
 
 
48 (b
)

*Qwest Communications International Inc.
 
Plan Sponsor
 
Employee contributions not timely remitted to the Plan for certain pay periods in June and July 2002. Corrected and remitted on August 30, 2002
 
 
4,394 (b
)

*Qwest Communications International Inc.
 
Plan Sponsor
 
Employee contributions not timely remitted to the Plan for certain pay periods in January, April, and June 2002. Corrected and remitted on October 11, 2002
 
 
283 (b
)

*Qwest Communications International Inc.
 
Plan Sponsor
 
Employee contributions not timely remitted to the Plan for certain pay periods in July and October 2002. Corrected and remitted on November 22, 2002
 
 
4,307 (b
)

*Qwest Communications International Inc.
 
Plan Sponsor
 
Employee contributions not timely remitted to the Plan for certain pay periods in February and November 2002. Corrected and remitted on January 3, 2003
 
 
32,174 (b
)

*Qwest Communications International Inc.
 
Plan Sponsor
 
Employee contributions not timely remitted to the Plan for certain pay periods in February, June, November, and December 2002 have not been corrected or remitted.
 
 
6,125 (b
)
(a)
Interest was calculated at the corporate federal underpayment rate for the period of time the employer had control of the funds and is not included in the transaction amount. Total interest remitted to the participants was $2,717.

(b)
Interest was calculated at the corporate federal underpayment rate for the period of time the employer had control of the funds and is not included in the transaction amount. Total interest due the participants is $561.

*
Represents a party-in-interest.

See accompanying independent auditors' report.

33


SIGNATURES

        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.

Qwest Savings & Investment Plan

6/30/2003
Date		   /s/  OREN G. SHAFFER      
Oren G. Shaffer
Authorized Representative		    

34


 EX-23 3 a2113763zex-23.htm EXHIBIT 23
QuickLinks -- Click here to rapidly navigate through this document


EXHIBIT 23

Independent Auditors' Consent

Qwest Communications International Inc.:

We consent to the incorporation by reference in the registration statements on Form S-8 (Nos. 333-74622 and 333-91424) of Qwest Communications International Inc., of our report dated June 27, 2003, with respect to the net assets available for benefits of the Qwest Savings & Investment Plan as of December 31, 2002 and December 30, 2002 and the related statements of changes in net assets available for benefits for the one-day period ended December 31, 2002, and the year ended December 30, 2002, and the related supplemental schedules, which report appears in the December 31, 2002 annual report on Form 11-K of the Qwest Savings & Investment Plan.

  KPMG LLP

Denver, Colorado
June 27, 2003

35



QuickLinks

Independent Auditors' Consent
 -----END PRIVACY-ENHANCED MESSAGE-----