-----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, L7taw4qugY73EyZ5uVhy1lR0tqqN4sAwrBI9BeYMVRbKSBVDF1PxA/YU65Bni+aU E0VaifbxnEe6wpOgApqakw== 0000804753-98-000016.txt : 19980630 0000804753-98-000016.hdr.sgml : 19980630 ACCESSION NUMBER: 0000804753-98-000016 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980629 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: CERNER CORP /MO/ CENTRAL INDEX KEY: 0000804753 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 431196944 STATE OF INCORPORATION: DE FISCAL YEAR END: 1230 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 000-15386 FILM NUMBER: 98656422 BUSINESS ADDRESS: STREET 1: 2800 ROCKCREEK PKWY-STE 601 CITY: KANSAS CITY STATE: MO ZIP: 64117 BUSINESS PHONE: 8162211024 MAIL ADDRESS: STREET 1: 2800 ROCKCREEK PKWY STREET 2: DROP 1624 CITY: KANSAS CITY STATE: MO ZIP: 64117 11-K 1 FORM 11-K (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 1997 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commision file number 0-15386 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: Cerner Corporation Foundations Retirement Plan B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: Cerner Corporation 2800 Rockcreek Parkway, Suite 601 Kansas City, Missouri 64117 Financial Statements of the Cerner Corporation Associate 401K Retirement Plan and Trust. Independent Auditors' Report Statement of Net Assets Available for Participants - December 31, 1997 and December 31, 1996 Statement of Changes in Net Assest Available for Participants - Years Ended December 31, 1997 and December 31, 1996 Notes to Financial Statements The following financial statement, schedules and independent auditors' report on financial statement schedules of the Cerner Corporation Associate 401K Retirement Plan and Trust for the two-year period ended December 31, 1997: Schedule I - Schedule of Assets Held for Investment Purposes Schedule II - Schedule of Reportable Transactions Consent of Independent Auditors CERNER CORPORATION FOUNDATIONS RETIREMENT PLAN Financial Statements and Schedules December 31, 1997 and 1996 (With Independent Auditors' Report Thereon) INDEPENDENT AUDITORS' REPORT ---------------------------- The Board of Directors Cerner Corporation: We have audited the accompanying statements of net assets available for participants of the Cerner Corporation Foundations Retirement Plan as of December 31, 1997 and 1996 and the related statements of changes in net assets available for participants for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for participants of the Cerner Corporation Foundations Retirement Plan as of December 31, 1997 and 1996 and the changes in net assets available for participants for the years then ended, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary schedules of assets held for investment purposes and reportable transactions are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The fund information in the statements of net assets available for participants and the statements of changes in net assets available for participants is presented for purposes of additional analysis rather than to present the net assets available for participants and changes in net assets available for participants of each fund. The supplemental schedules and fund information have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. KPMG Peat Marwick LLP May 26, 1998 1 CERNER CORPORATION FOUNDATIONS RETIREMENT PLAN Statement of Net Assets Available for Participants December 31, 1997 - ------------------------------------------------------------------------------------------------------------------------------
Fund A Fund B Fund C Fund D Fund E Fund F Loans Total - ------------------------------------------------------------------------------------------------------------------------------ Investments at fair value: Common stock of Cerner Corporation, $ 25,007,205 - - - - - - 25,007,205 1,183,773 shares (cost $12,722,524) Twentieth Century Ultra Fund, 234,686 shares (cost $6,294,325) - 6,406,922 - - - - - 6,406,922 Twentieth Century Growth Fund, 162,194 shares (cost $3,701,215) - - 3,894,288 - - - - 3,894,288 Twentieth Century Select Fund, 57,859 shares (cost $2,365,005) - - - 2,464,226 - - - 2,464,226 Twentieth Century Balanced Fund 83,541 shares (cost $1,449,721) - - - - 1,515,435 - - 1,515,435 Capital Preservation Trust, 1,055,090 shares (cost $1,055,090) - - - - - 1,055,090 - 1,055,090 Loans to participants, at cost, which approximates fair value - - - - - - 325,261 325,261 - ------------------------------------------------------------------------------------------------------------------------------ Total investments 25,007,205 6,406,922 3,894,288 2,464,226 1,515,435 1,055,090 325,261 40,668,427 Cash 96,045 - - - - - - 96,045 Contributions receivable: Associates 77,206 58,261 35,421 23,223 11,580 7,174 - 212,865 Employer 42,573 - - - - - - 42,573 - ------------------------------------------------------------------------------------------------------------------------------ Net assets available for participants $ 25,223,029 6,465,183 3,929,709 2,487,449 1,527,015 1,062,264 325,261 41,019,910 - ------------------------------------------------------------------------------------------------------------------------------
See accopmpanying notes to financial statements. 2 CERNER CORPORATION FOUNDATIONS RETIREMENT PLAN Statement of Net Assets Available for Participants December 31, 1996 - -----------------------------------------------------------------------------------------------------------------------------------
Fund A Fund B Fund C Fund D Fund E Fund F Loans Total - ----------------------------------------------------------------------------------------------------------------------------------- Investments at fair value: Common stock of Cerner Corporation, 1,042,355 shares (cost $9,620,806) $ 16,026,208 - - - - - - 16,026,208 Twentieth Century Ultra Fund, 149,825.60 shares (cost $3,685,233) 4,208,601 - - - - - 4,208,601 Twentieth Century Growth Fund, 114,371.02 shares (cost $2,433,432) - - 2,502,438 - - - - 2,502,438 Twentieth Century Select Fund, 38,481.54 shares (cost $1,469,251) - - - 1,482,694 - - - 1,482,694 Twentieth Century Balanced Fund, 58,742.28 shares (cost $981,204) - - - - 1,013,892 - - 1,013,892 Capital Preservation Fund, 836,952.26 shares (cost $836,952) - - - - - 836,952 - 836,952 Loans to participants, at cost, which approximates fair value - - - - - - 286,581 286,581 - ----------------------------------------------------------------------------------------------------------------------------------- Total investments 16,026,208 4,208,601 2,502,438 1,482,694 1,013,892 836,952 286,581 26,357,366 Cash 85,233 - - - - - - 85,233 Contributions receivable: Associates 55,813 33,747 18,172 10,384 6,490 5,192 - 129,798 Employer 25,959 - - - - - - 25,959 - ----------------------------------------------------------------------------------------------------------------------------------- Net assets available for participants $ 16,193,213 4,242,348 2,520,610 1,493,078 1,020,382 842,144 286,581 26,598,356 - -----------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 3 CERNER CORPORATION FOUNDATIONS RETIREMENT PLAN Statement of Changes in Net Assets Available for Participants Year ended December 31, 1997 - -----------------------------------------------------------------------------------------------------------------------------------
Fund A Fund B Fund C Fund D Fund E Fund F Loans Total - ----------------------------------------------------------------------------------------------------------------------------------- Additions to net assets attributed to: Net appreciation (depreciation) in fair value of investments $ 6,448,871 (287,262) 188,217 123,294 42,868 - - 6,515,988 Interest and dividends 2,309 1,300,685 569,444 390,093 148,336 52,183 25,618 2,488,668 Interfund transfers 192,065 (105,418) (93,907) 43,729 1,650 (38,119) - - Employer contributions (note 2) 730,281 - - - - - - 730,281 Associates' contributions (note 2) 2,684,698 1,832,993 1,079,568 688,480 411,947 259,980 - 6,957,666 Loan repayments 64,596 23,188 13,762 9,062 1,965 266 (112,839) - - ----------------------------------------------------------------------------------------------------------------------------------- Total additions (deductions) 10,122,820 2,764,186 1,757,084 1,254,658 606,766 274,310 (87,221) 16,692,603 - ----------------------------------------------------------------------------------------------------------------------------------- Deductions from net assets attributed to: Distributions to associates (1,009,580) (512,867) (323,325) (253,445) (97,000) (42,139) (31,107) (2,269,463) Loans to participants (82,752) (28,142) (24,511) (6,603) (3,000) (12,000) 157,008 - Investments expenses (672) (342) (149) (239) (133) (51) - (1,586) - ------------------------------------------------------------------------------------------------------------------------------------ Total (deductions) additions (1,093,004) (541,351) (347,985) (260,287) (100,133) (54,190) 125,901 (2,271,049) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase 9,029,816 2,222,835 1,409,099 994,371 506,633 220,120 38,680 14,421,554 Net assets available for participants: Beginning of year 16,193,213 4,242,348 2,520,610 1,493,078 1,020,382 842,144 286,581 26,598,356 - ------------------------------------------------------------------------------------------------------------------------------------ End of year $ 25,223,029 6,465,183 3,929,709 2,487,449 1,527,015 1,062,264 325,261 41,019,910 - ------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 4 CERNER CORPORATION FOUNDATIONS RETIREMENT PLAN Statement of Changes in Net Assets Available for Participants Year ended December 31, 1996 - ------------------------------------------------------------------------------------------------------------------------------------
Fund A Fund B Fund C Fund D Fund E Fund F Loans Total - ------------------------------------------------------------------------------------------------------------------------------------ Additions to net assets attributed to: Net appreciation (depreciation) in fair value of investments $ (5,020,042) 212,587 240,662 78,267 6,864 - - (4,481,662) Interest and dividends 2,453 235,980 47,778 138,896 98,817 42,053 23,055 589,032 Interfund transfers 100,997 40,735 (66,345) 13,598 (27,686) (61,299) - - Employer contributions (note 2) 592,493 - - - - - - 592,493 Associates' contributions (note 2) 2,219,846 1,335,389 825,401 414,938 277,106 321,997 - 5,394,677 Loan repayments 41,566 8,946 8,488 4,955 1,794 2,981 (68,730) - - ------------------------------------------------------------------------------------------------------------------------------------ Total additions (deductions) (2,062,687) 1,833,637 1,055,984 650,654 356,895 305,732 (45,675) 2,094,540 - ------------------------------------------------------------------------------------------------------------------------------------ Deductions from net assets attributed to: Distributions to associates (747,716) (336,556) (179,494) (139,930) (86,256) (63,998) (17,338) (1,571,288) Loans to participants (30,567) (17,762) (33,103) (9,425) (6,028) (45,024) 141,909 - Investment expenses (451) (254) (352) (185) (161) (52) (1,664) (3,119) - ------------------------------------------------------------------------------------------------------------------------------------ Total (deductions) additions (778,734) (354,572) (212,949) (149,540) (92,445) (109,074) 122,907 (1,574,407) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) (2,841,421) 1,479,065 843,035 501,114 264,450 196,658 77,232 520,133 Net assets available for participants: Beginning of year 19,034,634 2,763,283 1,677,575 991,964 755,932 645,486 209,349 26,078,223 - ------------------------------------------------------------------------------------------------------------------------------------ End of year $ 16,193,213 4,242,348 2,520,610 1,493,078 1,020,382 842,144 286,581 26,598,356 - ------------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. 5 CERNER CORPORATION FOUNDATIONS RETIREMENT PLAN Notes to Financial Statements December 31, 1997 and 1996 - ---------------------------------------------------------------------- (1) Summary of Significant Accounting Policies General The following brief description of the Cerner Corporation Foundations Retirement Plan (the Plan) is provided for general information purposes only. Participants should refer to the Plan Agreement for more complete information. The Plan was adopted by the Board of Directors of Cerner Corporation (the Company or Employer) effective November 1, 1987. The Plan is administered by a third- party administrator. All full-time associates of the Company are eligible for participation in the Plan after attaining age eighteen. Basis of Presentation The accompanying financial statements have been prepared on the accrual basis in conformity with generally accepted accounting principles and present the Plan's net assets available for participants and changes in those net assets. Expenses Substantially all costs and expenses incurred in administering the Plan are paid by the Company. Expenses related to issuance of loans to participants are charged to the participant obtaining the loan. Investments The Plan's investments and earnings thereon are held in a bank trust account. The fair values of investments are based principally on quotations from national securities exchanges. Purchases and sales of securities are recorded on a trade-date basis. Loans to Participants At the discretion of the Company, loans may be made to participants in an amount up to 50% of the participant's self-directed funds balance. The loan period may not exceed ten years and the interest rate is prime plus 1%. Use of Estimates The Plan utilizes a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with generally accepted accounting principles. Actual results could differ from those estimates. (Continued) 6 CERNER CORPORATION FOUNDATIONS RETIREMENT PLAN Notes to Financial Statements - ------------------------------------------------------------------- (2) Contributions Participating associates may elect to make pretax contributions from 1% to 15% of their compensation to the Plan, subject to annual limits imposed by the Internal Revenue Service. Participants may direct contributions into six different investment funds. These funds include Fund A (limited to investments in the common stock of the Company), Fund B (Twentieth Century Ultra Investors), Fund C (Twentieth Century Growth Investors), Fund D (Twentieth Century Select Investors), Fund E (Twentieth Century Balanced Investors) and Fund F (Benham Preservation Fund which primarily invests in short-term investments and guaranteed insurance contracts). The Company will make matching contributions in an amount equal to 20% of the participant's annual contribution, not to exceed the lesser of 2% of the participant's compensation or $600 per participant. All Company contributions are directed to Fund A. (3) Distributions Upon normal retirement, retirement for permanent disability or death, a participant is entitled to the full value of the assets attributable to his or her contributions and Company contributions made on his or her behalf. Upon termination for any other reason, a participant is entitled to 100% of his or her contributions and the vested portion of Company contributions. Company contributions vest 20% after three years of service and 20% for each additional year of service until a participant is 100% vested upon completing seven years of service. Forfeitures of nonvested contributions are allocated to all Plan participants as of the Plan year- end on a pro rata basis according to individual participant annual earnings. Participants receive distributions from Fund A in shares of the Company's common stock, except that cash is distributed for fractional shares. Participants may also elect to receive cash for distributions with a value less than $1,000. During the years ended December 31, 1997 and 1996, 38,338 shares and 44,382 shares of the Company's common stock, respectively, were distributed to withdrawing participants. Participants receive distributions from all other funds in cash. (4) Tax Status The Plan received a favorable determination letter, dated August 25, 1994, from the Internal Revenue Service confirming the tax-exempt status of the Plan under Section 401(a) of the Internal Revenue Code. The Company is not aware of any activity or transactions that may adversely affect the qualified status of the Plan. (Continued) 7 CERNER CORPORATION FOUNDATIONS RETIREMENT PLAN Notes to Financial Statements - --------------------------------------------------------------------- (5) Plan Participants The following summarizes the number of associate participants by fund as of December 31, 1997: - ---------------------------------------------------------------------
Cerner stock account 1,809 Twentieth Century Mutual Funds: Ultra Investors 1,180 Growth Investors 887 Select Investors 630 Balanced Investors 409 Benham Preservation Fund 253 - ---------------------------------------------------------------------
Because associates may invest in more than one fund, the number of associate participants above exceeds the total number of associate participants. 8 Schedule 1 ---------- CERNER CORPORATION FOUNDATIONS RETIREMENT PLAN Item 27(a) - Schedule of Assets Held for Investment Purposes December 31, 1997 - --------------------------------------------------------------------------------------------------------------
Fair Asset Description Cost value - -------------------------------------------------------------------------------------------------------------- Cerner Corporation 1,183,773 shares of common stock $ 12,722,524 25,007,205 Twentieth Century Ultra Investors Mutual Fund, 234,686 shares 6,294,324 6,406,922 Twentieth Century Growth Investors Mutual Fund, 162,194 shares 3,701,215 3,894,288 Twentieth Century Select Investors Mutual Fund, 57,589 shares 2,365,005 2,464,226 Twentieth Century Balanced Investors Mutual Fund, 83,541 shares 1,449,721 1,515,435 Capital Preservation Trust 1,055,090 units of participation in a pooled fund 1,055,090 1,055,090 Loans to participants Loans to participants (bearing interest from 7% to 10%) 325,261 325,261 - -------------------------------------------------------------------------------------------------------------- $ 27,913,140 40,668,427 - --------------------------------------------------------------------------------------------------------------
See accompanying independent auditors' report. 10 CERNER CORPORATION FOUNDATIONS RETIREMENT PLAN Schedule 2 ---------- Item 27(d) - Schedule of Reportable Transactions Year ended December 31, 1997 - ---------------------------------------------------------------------------------------
Identity of party Description Purchase Selling Original Net gain involved of asset price price cost (loss) - --------------------------------------------------------------------------------------- Cerner Corporation Common Stock $ 3,857,048 - 3,857,048 - Cerner Corporation Common Stock - 1,324,922 755,330 569,592 American Century Ultra Fund 3,109,164 - 3,109,164 - American Century Growth Fund 1,659,792 - 1,659,792 - - ---------------------------------------------------------------------------------------
Transactions involving Cerner Corporation common stock are party-in-interest transactions. NOTES: A reportable transaction is defined by the Department of Labor as: * A single transaction is excess of 5% of the fair value of Plan assets. * A series of transactions with or in conjunction with the same person, involving property other than securities, which amounts in the aggregate to more that 5% of the fair value of the Plan assets. * A series of transactions with respect to securities of the same issue which amount in the aggregate to more that 5% of the fair value of the total Plan assets. * Any transaction with or in conjunction with a person if a prior or subsequent single transaction has occurred with respect to securities with or in conjunction with the same person in an amount in excess of 5% of the fair value of Plan assets. A reportable transaction is identified by comparing the fair value of the transaction at the transaction date with the fair value of the Plan assets at the beginning of the year ended December 31, 1997. See accompanying independent auditors' report. 10 SIGNATURES The Plan. Pursuant tto the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly cause this annual report to be signed on its behalf by the undersigned hereunto duly authorized. Cerner Corporation Foundations Retirement Plan ---------------------------------------------- (Name of Plan) Date: June 29, 1998 /s/Maureen M.Evans --------------- ---------------------- Maureen M. Evans ---------------------- Title: Administrator ---------------- /s/Clifford W. Illig ----------------------- Clifford W. Illig ----------------------- Title: Administrator INDEPENDENT AUDITORS' CONSENT ----------------------------- The Board of Directors Cerner Corporation: We consent in incorporation by reference in the Registration Statements (No. 33-56868, No. 33-55082, No. 33-41580, No. 33-39777, No. 33-39776, No. 33-20155 and No. 33-15156) on Form S-8 on Cerner Corporation or our report dated May 26, 1998, relating to the statements of net assets available for participants of Cerner Corporation Foundations Retirement Plan as of December 31, 1997 and 1996, and the related statements of changes in net assets available for participants for the years ended and the related supplemental schedules of assets held for investment purposes and reportable transactions, which report is included herein. KPMG Peat Marwick LLP Kansas City, Missouri June 29, 1998 -----END PRIVACY-ENHANCED MESSAGE-----