===============================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------------------------------
FORM 11-K
Pursuant to Section 15 (d) of the
Securities Exchange Act of 1934
----------------------------------------
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT
OF 1934
for the fiscal year ended December 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT
OF 1934 [NO FEE REQUIRED]
For the transition period from ___________ to __________
---------------------------------------
Commission File No. 0-25078
A. Full Title of the Plan
PHAMIS INC. SALARY SAVINGS AND DEFERRAL PLAN
B. Name of the Issuer of the securities held pursuant to the Plan and the
address of its principal executive office:
IDX Systems Corporation
1400 Shelburne Road
Burlington, VT 05402
===============================================================================
<PAGE>
REQUIRED INFORMATION
Financial Statements and Exhibit
Item (4) (a) Independent Auditors' Report
Financial Statements:
Statements of Net Assets Available for Benefits,
December 31, 1998 and 1997
Statements of Changes in Net Assets Available for Benefits,
years ended December 31, 1998 and 1997
Notes to Financial Statements
Schedule 1-Line 27a - Schedule of Assets Held for Investment
Purposes, December 31, 1998
Schedule 2-Line 27b - Schedule of Loans or Fixed Income
Obligations, December 31, 1998
Schedule 3-Line 27d - Schedule of Reportable Transactions, year
ended December 31, 1998
Schedule 4-Line 27e - Schedule of Nonexempt Transactions, year
ended December 31, 1998
(b) Exhibit:
Consent of Independent Certified Public Accountants
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees have duly caused this annual report to be signed by the undersigned on
their behalf hereunto duly authorized.
PHAMIS Inc. Salary Savings and Deferral Plan
Date: June 29, 1999 BY: /s/ John A. Kane
---------------------------------------
John A. Kane
Vice President, Finance, CFO and Treasurer
Page 2
<PAGE>
PHAMIS INC.
Salary Savings and Deferral Plan
Financial Statements and Schedules
December 31, 1998 and 1997
(With Independent Auditors' Report Thereon)
Page 3
<PAGE>
Phamis Inc.
Salary Savings and Deferral Plan
Table of Contents
<TABLE>
<CAPTION>
DESCRIPTION PAGE
- ----------- ----
<S> <C>
Independent Auditors' Report 5
Statements of Net Assets Available for Benefits 6
Statements of Changes in Net Assets Available for Benefits 7
Notes to Financial Statements 8
Schedules
1 Line 27a--Schedule of Assets Held for Investment Purposes 21
2 Line 27b--Schedule of Loans or Fixed Income Obligations 22
3 Line 27d--Schedule of Reportable Transactions 23
4 Line 27e--Schedule of Nonexempt Transactions 24
</TABLE>
Page 4
<PAGE>
Independent Auditors' Report
Plan Administration Committee
PHAMIS Inc. Salary Savings and Deferral Plan:
We have audited the accompanying statements of net assets available for benefits
of PHAMIS Inc. Salary Savings and Deferral Plan (Plan) as of December 31, 1998
and 1997, and the related statements of changes in net assets available for
benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as of
December 31, 1998 and 1997, and the changes in net assets available for benefits
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 supplemental schedules of assets held
for investment purposes and loans or fixed income obligations at December 31,
1998 and reportable transactions and nonexempt transactions for the year ended
December 31, 1998 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.
/s/ KPMG LLP
KPMG LLP
Seattle Washington
May 13, 1999
Page 5
<PAGE>
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
Statements of Net Assets Available for Benefits
December 31, 1998 and 1997
<TABLE>
<CAPTION>
1998 1997
-------------------- --------------------
<S> <C> <C>
Assets:
Investments at fair value:
Money market funds $ -- 4,560
Common stock 4,075,408 3,891,749
Mutual funds 9,335,119 8,481,271
Loans to participants 469,027 377,781
-------------------- --------------------
13,879,554 12,755,361
-------------------- --------------------
Receivables:
Sponsor 61,641 9,485
Participants 23,527 98,272
Receivables from sale of
investments 2,490,751 --
Accrued interest and dividends 14,263 122,359
Other -- 4,543
-------------------- --------------------
2,590,182 234,659
-------------------- --------------------
Cash 398,182 --
-------------------- --------------------
Total Assets $ 16,867,918 12,990,020
-------------------- --------------------
Liabilities:
Payable to IDX Systems
Corporation Retirement Plan $ 16,753,415 --
Payable for purchase of
investments 114,503 --
-------------------- -------------------
Total liabilities 16,867,918 ---
Net assets available
for benefits $ -- 12,990,020
===================== ====================
</TABLE>
See accompanying notes to financial statements.
Page 6
<PAGE>
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
Statements of Changes in Net Assets Available for Benefits
Years ended December 31, 1998 and 1997
<TABLE>
<CAPTION>
1998 1997
----------------- --------------------
<S> <C> <C>
Additions to net assets available
for benefits attributed to:
Investment income:
Dividends $ 1,263,793 498,217
Interest 39,737 33,992
Net appreciation (depreciation)
in fair value of investments:
Common stock 685,102 2,182,597
Mutual funds 654,926 648,237
Self-directed investments
of participants -- 14,369
------------------ --------------------
1,340,028 2,845,203
------------------ --------------------
2,643,558 3,377,412
------------------ --------------------
Contributions:
Sponsor 500,166 338,672
Participants 2,329,115 1,682,065
------------------- --------------------
2,829,281 2,020,737
------------------- --------------------
Transfer from Data Breeze,
Inc. 401(k) Plan -- 275,134
------------------- --------------------
Total additions 5,472,839 5,673,283
Deductions from net assets
available for benefits
attributed to
benefits paid to participants 1,707,546 1,159,692
Transfer to IDX Systems
Corporation Retirement Plan 16,755,313 --
------------------- --------------------
Total deductions 18,462,859 1,159,692
Net increase in net assets
available for benefits (12,990,020) 4,513,591
Net assets available for benefits
at beginning of year 12,990,020 8,476,429
------------------- --------------------
Net assets available for benefits
at end of year $ -- 12,990,020
=================== ====================
</TABLE>
See accompanying notes to financial statements.
Page 7
<PAGE>
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(1) DESCRIPTION OF PLAN
The following description of the PHAMIS Inc. Salary Savings and Deferral
Plan (Plan) provides only general information. Participants should refer
to the Plan document for a more complete description of the Plan's
provisions.
(a) GENERAL
The Plan is a defined contribution plan established in 1984 to
provide a deferred income savings plan for employees of PHAMIS,
Inc. The Plan's provisions permit tax deferred contributions by
participants pursuant to section 401(k) of the Internal Revenue
Code. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA).
In March 1996, PHAMIS, Inc. merged with DataBreeze, Inc.,
which became a wholly-owned subsidiary. On April 30, 1997, the
DataBreeze, Inc.401(k) Plan merged with the Plan. On the date of
the Plan merger, the DataBreeze, Inc. 401(k) Plan had assets
available for benefits of approximately $275,000.
In July 1997, PHAMIS, Inc. merged with IDX Systems Corporation
(IDX or Sponsor). As a result of the merger, in July, 1997, the
common stock in the PHAMIS, Inc. Stock Fund was converted to IDX
common stock at the exchange ratio used to effect the merger. The
PHAMIS, Inc. Stock Fund was replaced by the IDX Systems
Corporation Stock fund. The Plan was merged with the IDX Systems
Corporation Retirement Plan effective December 31, 1998.
(b) PLAN ADMINISTRATION
The Sponsor is the Plan administrator and has appointed an
administrative committee to administer the Plan. The assets of the
Plan are held by Northwestern Trust and Investors Advisory Company
(Northwestern Trust) which also serves as trustee of the Plan.
Certain services are performed by Howard Johnson & Company based
upon information provided by the Plan administrator.
Administrative expenses of the Plan are paid by the Sponsor.
(c) ELIGIBILITY, CONTRIBUTIONS AND PARTICIPANT ACCOUNTS
All non-union employees who were employees of PHAMIS, Inc. prior
to the IDX merger or were hired at the Seattle location after the
IDX merger who are age 18 or older are eligible to participate in
the Plan after completing one hour of service, and become eligible
for the employer matching contribution on the first day of the
calendar quarter immediately following completion of one year of
service (defined as a Plan year during which a participant
completes at least 1,000 hours of service). All eligible employees
are participants in the Plan whether or not actual contributions
are made.
Participants may contribute between 1% and 15% of their pretax
salary, limited by the Internal Revenue Code to $10,000 and $9,500
in 1998 and 1997, respectively. Pretax contributions are matched
by the Sponsor at 50% up to $1,500 per participant per year.
Page 8
<PAGE>
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(d) VESTING
Participants are immediately vested in their contributions, the
Sponsor matching contributions and the earnings thereon.
(e) INVESTMENT OPTIONS
Participants have the option of directing their contributions in
1% increments into any one or more of the Plan's investment
options. Prior to July 11, 1997 the Sponsor matching contributions
consisted of PHAMIS, Inc.'s common stock. Subsequent to July 11,
1997, the Sponsor contribution is made in cash and invested in
accordance with the participant's contributions elections.
A description of each of the available funds as of December 31,
1998 follows:
- IDX Systems Corporation Stock Fund--Invests in IDX Systems
Corporation common stock.
- Bond Fund of America--Invests at least 60% of its assets in
securities rated A or better by Moody's or Standard & Poor's
bond rating services and can invest in lower rated, higher
risk securities when appropriate, as well as in non-U.S.
bonds.
- Washington Mutual Investors Fund--Seeks current income and
an opportunity for growth of principal consistent with sound
common stock investing. The fund invests only in companies
which satisfy certain specifications regarding earnings,
dividends, capital and liquidity.
- AIM Limited Maturity Fund--Invests in a diversified
portfolio of short-term U.S. Government Securities.
- AIM Value Fund--Invests in stocks of companies of various
sizes, focusing on companies with above average earnings
growth that are selling at or below market prices.
- Kaufmann Fund--Invests in a diversified portfolio of small
company stocks. These investments generally assume higher
risk in exchange for the opportunity of higher returns.
- Templeton Foreign Fund--Invests in the stocks of foreign
companies in both developed and underdeveloped countries.
- Loan Fund--Allows participants to borrow up to 50% of their
total account balance subject to certain limitations.
Participants may change their investment options quarterly.
On a quarterly basis, each participant's account is credited with
an allocation of each investment fund's earnings based on the
participant's weighted average account balance in each fund for
the quarter.
Page 9
<PAGE>
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(f) PARTICIPANT NOTES RECEIVABLE
Participants may borrow from their fund accounts a minimum of
$1,000 up to a maximum of 50% of their account balance. Loan
transactions are treated as a transfer to (from) the investment
fund from (to) the Loan Fund. Loan terms range from 1 to 5 years
or up to 30 years for the purchase of a primary residence. The
loans are secured by the balance in the participant's account and
bear interest at a rate of prime plus 1%. Principal and interest
are paid ratably through monthly payroll deductions. Participants
are limited to two outstanding loans at any point in time.
(g) PAYMENT OF BENEFITS
Participants are eligible to receive distributions upon
termination of employment, upon becoming permanently disabled,
upon retirement, or upon request for a hardship withdrawal prior
to termination. Distributions are paid in a single lump sum or, if
the account balance exceeds $3,500 and at the participant's
election, by payment in monthly, quarterly or annual installments
over a fixed reasonable period of time not to exceed the combined
life expectancy of the participant and beneficiary.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) BASIS OF PRESENTATION
The accompanying financial statements have been prepared on the
accrual basis of accounting.
(b) USE OF ESTIMATES
The preparation of financial statements in conformity with
generally accepted accounting principles and the Department of
Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974 requires the
use of estimates and assumptions that affect the reported amounts
of assets, liabilities, and changes therein, and disclosure of
contingent assets and liabilities. Actual results could differ
from those estimates.
(c) INVESTMENT VALUATION AND INCOME RECOGNITION
Investments other than loans to participants are stated at fair
value based on quoted market prices. Loans to participants are
valued at cost, which approximates fair value.
Net appreciation or depreciation includes both realized and
unrealized gains and losses. Purchases and sales of investments
are recorded on a trade-date basis.
Page 10
<PAGE>
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(3) PLAN TERMINATION
The Plan was merged with the IDX Systems Corporation Retirement Plan
effective December 31, 1998. The Sponsor has the right under the
Plan to discontinue matching contributions or to terminate the
Plan at any time subject to the provisions of ERISA. If terminated,
Plan assets would be distributed to participants according to their
account balances.
(4) RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The Plan's Form 5500 as of December 31, 1998 reflects the transfer of
assets to the IDX Systems Corporation Retirement Plan for the Plan merger
effective December 31, 1998.
The following is a reconciliation of benefits paid to participants per
the financial statements to the Form 5500 for the year
ended December 31, 1998:
Benefits paid to participants per the financial
statements $ 1,707,546
Add amounts allocated to withdrawing participants
at December 31, 1998 65,031
-------------------
Benefits paid to participants per Form 5500 $ 1,772,577
===================
Amounts allocated to withdrawing participants are recorded on Form 5500
for benefit claims that have been processed and approved for payment
prior to December 31 but not yet paid as of that date.
(5) TAX STATUS
The Internal Revenue Service has determined and informed the Sponsor by a
letter dated September 20, 1995 that the Plan and related trust are
designed in accordance with applicable sections of the Internal Revenue
Code (IRC). The Plan has been amended since receiving the determination
letter. However, the Plan administrator believes that the Plan is
designed and is currently being operated in compliance with the
applicable requirements of the IRC.
Page 11
<PAGE>
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(6) INVESTMENTS
The following table presents the assets held for investment purposes at
December 31:
<TABLE>
<CAPTION>
1998 1997
-------------------- --------------------
Principal Principal
amount or amount or
number of Investment number of Investment
shares value shares value
--------- --------- ---------- ---------
<S> <C> <C> <C> <C>
Money market funds:
Fidelity Institutional
Cash Domestic Money - $ -- 4,560 $ 4,560
Market Class I
--------- --------- ---------- ---------
Common stock:
IDX Systems Corporation 92,532 4,075,408 105,182 3,891,749
--------- --------- ---------- ---------
Mutual funds:
Bond Fund of America 48,749 663,476 30,419 425,863
Washington Mutual 105,833 3,482,970 80,006 2,428,180
Investors Fund
AIM Limited Maturity 76,637 778,630 58,171 585,783
Fund
AIM Value Fund A 109,730 4,410,043 717 23,237
AIM Value Fund Class B -- -- 7,632 2,794,602
Kaufmann Fund -- -- 218,166 1,389,644
Templeton Foreign Fund -- -- 83,815 833,962
--------- ---------
Total mutual funds 9,335,119 8,481,271
--------- ---------
Loans to participants 469,027 377,781
========= =========
Total investments $13,879,554 $12,755,361
========== ==========
</TABLE>
(7) NON-EXEMPT TRANSACTION
During 1998, the Sponsor failed to transmit several payroll period
participant contributions amounting to $327,589 as soon as reasonably
segregable from the Sponsor's assets. The participant's contributions were
subsequently restored, and the participant's accounts will be credited with
$49,518 of lost earnings thereon.
Page 12
<PAGE>
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(8) NET ASSETS AVAILABLE FOR BENEFITS AND CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS BY FUND
Net assets available for benefits as of December 31 and changes in
net assets available for benefits for the years then ended are
allocated by fund as follows:
<TABLE>
<CAPTION>
1998
- -------------------------------------------------------------------------------
WASHINGTON AIM
BOND MUTUAL LIMITED AIM
IDX STOCK FUND OF INVESTORS MATURITY VALUE
FUND AMERICA FUND FUND FUND
--------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C>
Assets:
Investments at fair
value:
Money market funds -- -- -- -- --
Common stock ,075,408 -- -- -- --
Mutual funds -- 663,476 3,482,970 778,630 4,410,043
Loans to participants -- -- -- -- --
----------- --------- --------- ------- ---------
4,075,408 663,476 3,482,970 778,630 4,410,043
----------- -------- --------- -------- ---------
Receivables:
Sponsor 4,445 3,487 563 793 506
Participants 23,527 -- -- -- --
Receivables from sale
of investments -- -- -- -- --
Accrued interest and
dividends -- 2,023 -- 3,166 9,074
----------- --------- ---------- -------- ---------
27,972 5,510 563 3,959 9,580
----------- -------- ---------- -------- ---------
Cash 3,173 25,224 89,279 18,241 125,533
----------- -------- ---------- -------- ---------
Total Assets 4,106,553 694,210 3,572,812 800,830 4,545,156
Liabilities:
Payable to IDX
Systems Corpora-
tion Retirement
Plan 4,106,553 668,986 3,483,533 800,830 4,545,156
Payable for purchase
of investments -- 25,224 89,279 -- --
----------- --------- ---------- -------- ---------
Total liabilities 4,106,553 694,210 3,572,812 800,830 4,545,156
----------- --------- ---------- -------- ---------
Net assets available
for benefits $ -- -- -- -- --
=========== ========= ========== ======== =========
</TABLE>
Page 13
<PAGE>
<TABLE>
<CAPTION>
1998
- -------------------------------------------------------------------------------
TEMPLETON
KAUFMANN FOREIGN LOAN
FUND FUND FUND OTHER TOTAL
-------- --------- ------ ------- -------
<S> <C> <C> <C> <C> <C>
Assets:
Investments at fair
value:
Money market funds $ -- -- -- -- --
Common stock -- -- -- -- 4,075,408
Mutual funds -- -- -- -- 9,335,119
Loans to participants -- -- 469,027 -- 469,027
---------- --------- --------- -------- ----------
-- -- 469,027 -- 13,879,554
---------- --------- --------- -------- -----------
Receivables:
Sponsor 1,574 755 -- 49,518 61,641
Participants -- -- -- -- 23,527
Receivables from
sale of
investments 1,643,362 847,389 -- -- 2,490,751
Accrued interest
and dividends -- -- -- -- 14,263
---------- --------- --------- -------- -----------
1,644,936 848,144 -- 49,518 2,590,182
---------- --------- --------- --------- -----------
Cash 95,411 41,321 -- -- 398,182
---------- --------- --------- --------- -----------
Total Assets 1,740,347 889,465 469,027 49,518 16,867,918
Liabilities:
Payable to IDX
Systems Corpora-
tion Retirement
Plan 1,740,347 889,465 469,027 49,518 16,753,415
Payable for purchase
of investments -- -- -- -- 114,503
--------- --------- --------- --------- -----------
Total liabilities 1,740,347 889,465 469,027 49,518 16,867,918
--------- --------- --------- --------- -----------
Net assets available
for benefits $ -- -- -- -- --
=========== ========= ========= ========= ===========
</TABLE>
Page 14
<PAGE>
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
Notes to Financial Statements, Continued
<TABLE>
<CAPTION>
1997
- ------------------------------------------------------------------------------
WASHINGTON AIM
BOND MUTUAL LIMITED AIM
IDX STOCK FUND OF INVESTORS MATURITY VALUE
FUND AMERICA FUND FUND FUND
--------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C>
Investments at fair
value:
Money market funds $ 4,560 -- -- -- --
Common stock 3,891,749 -- -- -- --
Mutual funds -- 425,863 2,428,180 585,783 2,817,839
Self-directed
investments of
participants -- -- -- -- --
Loans to
participants -- -- -- -- --
---------- ------- ---------- -------- -----------
3,896,309 425,863 2,428,180 585,783 2,817,839
---------- ------- ---------- -------- -----------
Receivables:
Sponsor 395 538 2,784 534 2,285
Participants 4,148 5,538 22,790 4,233 29,410
Other 279 3,094 552 50 (106)
Accrued interest
and dividends 740 3,917 -- 3,250 18,856
---------- ------- ---------- -------- -----------
5,562 13,087 26,126 8,067 50,445
---------- ------- ---------- -------- -----------
Net assets
available for
benefits $ 3,901,871 438,950 2,454,306 593,850 2,868,284
=========== ======== ========== ======== ==========
</TABLE>
Page 15
<PAGE>
<TABLE>
<CAPTION>
1997
- -----------------------------------------------------------------------
TEMPLETON
KAUFMANN FOREIGN LOAN
FUND FUND FUND TOTAL
-------- --------- ------ -------
<S> <C> <C> <C> <C>
Investments at fair
value:
Money marketfunds -- -- -- 4,560
Common stock -- -- -- 3,891,749
Mutual funds 1,389,644 833,962 -- 8,481,271
Self-directed
investments of
participants -- -- -- --
Loans to
participants -- -- 377,781 377,781
----------- --------- -------- ------------
1,389,644 833,962 377,781 12,755,361
----------- --------- -------- ------------
Receivables:
Sponsor 1,791 1,158 -- 9,485
Participants 19,854 12,299 -- 98,272
Other (662) 1,336 -- 4,543
Accrued interest
and dividends 89,476 6,120 -- 122,359
----------- --------- -------- ------------
110,459 20,913 -- 234,659
----------- --------- -------- ------------
Net assets
available for
benefits 1,500,103 854,875 377,781 12,990,020
=========== ========= ========= ============
</TABLE>
Page 16
<PAGE>
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
Notes to Financial Statements, Continued
<TABLE>
<CAPTION>
1998
- ---------------------------------------------------------------------
IDX WASHINGTON AIM
SYSTEMS BOND MUTUAL LIMITED AIM
CORPORATION FUND OF INVESTORS MATURITY VALUE
STOCK FUND AMERICA FUND FUND FUND
---------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C>
Additions to net
assets available
for benefits
attributed to:
Investment income:
Dividends $ -- 37,695 322,032 37,415 588,159
Interest 279 -- -- -- --
Net appreciation
(depreciation)
in fair value
of investments:
Common stock 685,102 -- -- -- --
Mutual funds -- (19,217) 180,157 3,693 840,262
---------- --------- --------- -------- ----------
685,102 (19,217) 180,157 3,693 840,262
---------- --------- --------- -------- ---------
685,381 18,478 502,189 41,108 1,428,421
---------- --------- --------- -------- ----------
Contributions:
Sponsor 38,740 23,363 106,767 30,760 125,670
Participants 166,437 124,449 557,974 147,460 639,463
---------- --------- --------- --------- ----------
205,177 147,812 664,741 178,220 765,133
---------- --------- --------- --------- ----------
Total additions 890,558 166,290 1,166,930 219,328 2,193,554
Net interfund
transfers (305,510) 114,603 102,429 226,000 (80,268)
Deductions from net
assets available
for benefits
attributed to
benefits paid to
participants 380,366 50,857 240,132 238,348 436,414
Transfers to IDX
Systems Corporation
Retirement Plan 4,106,553 668,986 3,483,533 800,830 4,545,156
---------- --------- --------- --------- ----------
Net decrease in
net assets
available for
benefits (3,901,871) (438,950) (2,454,306) (593,850) (2,868,284)
Net assets available
for benefits at
beginning of
year 3,901,871 438,950 2,454,306 593,850 2,868,284
----------- -------- ---------- -------- ----------
Net assets
available for
benefits at end
of year $ -- -- -- -- --
============ ========= ========== ========= ==========
</TABLE>
Page 17
<PAGE>
<TABLE>
<CAPTION>
1998
- ------------------------------------------------------------------------
TEMPLETON
KAUFMANN FOREIGN LOAN
FUND FUND FUND OTHER TOTAL
-------- --------- ------ ------- -------
<S> <C> <C> <C> <C> <C>
Additions to net
assets available for
benefits attributed
to:
Investment income:
Dividends $ 174,007 104,485 -- -- 1,263,793
Interest -- -- 39,458 -- 39,737
Net appreciation
(depreciation)
in fair value
of investments:
Common stock -- -- -- -- 685,102
Mutual funds (208,679) (141,290) -- -- 654,926
---------- ---------- --------- ------- ----------
(208,679) (141,290) -- -- 1,340,028
----------- ---------- --------- -------- ----------
(34,672) (36,805) 39,458 -- 2,643,558
----------- ---------- --------- -------- ----------
Contributions:
Sponsor 81,895 43,453 -- 49,518 500,166
Participants 460,429 232,903 -- -- 2,329,115
----------- ---------- --------- -------- ----------
542,324 276,356 -- 49,518 2,829,281
----------- ---------- --------- -------- ----------
Total additions 507,652 239,551 39,458 49,518 5,472,839
Net interfund
transfers (40,990) (89,211) 72,947 -- --
Deductions from net
assets available
for benefits
attributed to
benefits paid to
participants 224,739 115,531 21,159 -- 1,707,546
Transfers to IDX
Systems Corporation
Retirement Plan 1,742,026 889,684 469,027 49,518 16,755,313
----------- -------- -------- ------- ----------
Net decrease in
net assets
available for
benefits (1,500,103) (854,875) (377,781) -- (12,990,020)
Net assets available
for benefits at
beginning of
year 1,500,103 854,875 377,781 -- 12,990,020
----------- -------- -------- ------- ----------
Net assets available
for benefits at
end of year $ -- -- -- -- --
============ ========= ========= ======== ==========
</TABLE>
Page 18
<PAGE>
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
Notes to Financial Statements, Continued
<TABLE>
<CAPTION>
1997
- ---------------------------------------------------------------------
IDX WASHINGTON AIM
SYSTEMS BOND MUTUAL LIMITED AIM
CORPORATION FUND OF INVESTORS MATURITY VALUE
STOCK FUND AMERICA FUND FUND FUND
---------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C>
Additions to net
assets available
for benefits
attributed to:
Investment income:
Dividends $ -- 26,162 240,124 35,715 32,471
Interest 599 -- -- -- --
Net appreciation
(depreciation)
in fair Value
of investments:
Common stock 2,182,597 -- -- -- --
Mutual funds -- 6,416 399,112 3,063 222,420
Self-directed
investments of
participants -- -- -- -- --
---------- -------- -------- ------- ---------
2,182,597 6,416 399,112 3,063 222,420
---------- -------- -------- ------- ---------
2,183,196 32,578 639,236 38,778 254,891
---------- -------- --------- ------- ---------
Contributions:
Sponsor 267,430 3,533 20,538 2,965 22,393
Participants 150,403 74,588 353,659 81,853 502,607
---------- -------- --------- ------- ---------
417,833 78,121 374,197 84,818 525,000
---------- -------- --------- ------- ---------
Transfer from
DataBreeze, Inc.
401(k) Plan 18,815 3,976 42,725 16,573 29,000
---------- --------- --------- ------- ---------
Total additions 2,619,844 114,675 1,056,158 140,169 808,891
Net interfund
transfers (227,362) 30,475 9,623 (79,753) 158,982
Deductions from net
assets available
for benefits
attributed to
benefits paid
to participants 327,717 33,852 133,288 25,306 296,949
------------ -------- -------- -------- ---------
Net increase
(decrease) in
net assets
available for
benefits 2,064,765 111,298 932,493 35,110 670,924
Net assets
available for
benefits at
beginning of
year 1,837,106 327,652 1,521,813 558,740 2,197,360
------------ -------- --------- -------- ----------
Net assets
available for
benefits at
end of year $ 3,901,871 438,950 2,454,306 593,850 2,868,284
============ ======== ========= ======= =========
</TABLE>
Page 19
<PAGE>
<TABLE>
<CAPTION>
1997
- ------------------------------------------------------------------------------
TEMPLETON SELF-
KAUFMANN FOREIGN DIRECTED LOAN
FUND FUND FUND FUND TOTAL
--------- -------- --------- ------- --------
<S> <C> <C> <C> <C> <C>
Additions to net
assets available
for benefits
attributed to:
Investment income:
Dividends 89,476 74,269 -- -- 498,217
Interest -- -- -- 33,393 33,992
Net appreciation
(depreciation)
in fair value
of investments:
Common stock -- -- -- -- 2,182,597
Mutual funds 89,315 (72,089) -- -- 648,237
Self-directed
investments
of participants -- -- 14,369 -- 14,369
-------- -------- -------- -------- ---------
89,315 (72,089) 14,369 -- 2,845,203
-------- -------- -------- -------- ---------
178,791 2,180 14,369 33,393 3,377,412
-------- -------- -------- -------- ---------
Contributions:
Sponsor 14,256 7,557 -- -- 338,672
Participants 318,778 200,177 -- -- 1,682,065
------- -------- ------- -------- ---------
333,034 207,734 -- -- 2,020,737
------- ------- ------- -------- ---------
Transfer from
DataBreeze, Inc.
401(k)Plan 99,475 61,317 -- 3,253 275,134
-------- ------- ------- -------- ---------
Total additions 611,300 271,231 14,369 36,646 5,673,283
Net interfund
transfers 299,916 220,730 (441,782) 29,171 --
Deductions from net
assets available for
benefits attributed
to benefits paid
to participants 189,305 10,582 109,952 32,741 1,159,692
-------- ------- ------- ------- ---------
Net increase
(decrease) in
net assets
available for
benefits 721,911 481,379 (537,365) 33,076 4,513,591
Net assets
available for
benefits at
beginning of year 778,192 373,496 537,365 344,705 8,476,429
-------- ------- ------- ------- ---------
Net assets available
for benefits at
end of year 1,500,103 854,875 -- 377,781 12,990,020
========= ======= ======= ======= ==========
</TABLE>
Page 20
<PAGE>
Schedule 1
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
Line 27a--Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
Description of
investment, including
Identity of issue, maturity date, rate
borrower, of interest, Current
lessor, or similar collateral, par or Cost value
party maturity value
- ---------------------- ----------------------- --------- ---------
<S> <C> <C> <C>
American Funds Bond Fund of America, 671,149 663,476
48,749 shares
American Funds Washington Mutual
Investors Fund,
105,833 shares 2,758,167 3,482,970
AIM Investment AIM Limited Maturity
Securities Funds Treasury Shares,
76,637 shares 813,339 778,630
AIM Investment AIM Value Fund A, 3,402,166 4,410,043
Securities Funds 109,730 shares
*IDX Systems Corp. Common stock, 92,532 1,467,410 4,075,408
shares
Various Participant loans, 7% -- 469,027
to 10%
</TABLE>
* Party-in-interest of the Plan as defined
by Section 3(14) of ERISA.
Page 21
<PAGE>
Schedule 2
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
Line 27b--Schedule of Loans or Fixed Income Obligations
Year ended December 31, 1998
<TABLE>
<CAPTION>
Amount received during
Original reporting year Unpaid
Identity and amount ---------------------- balance at
address of obligor of loan Principal Interest end of year*
- ------------------- --------- ---------------------- --------------
<S> <C> <C> <C> <C>
Anya Wofford $ 2,200 75.67 44.93 2,323.12
5008 192nd St. SW
Lynnwood, WA 98036
Heidi Immel 6,400 -- -- 5,283.33
310 NW 75th
Seattle, WA 98117
</TABLE>
<TABLE>
<CAPTION>
Detailed description of loan
including dates of making and Amount overdue
maturity,interest rate,the type ----------------------------------
and valuation of collateral Principal Interest
- -------------------------------- ----------------------------------
<S> <C> <C>
Originated April 15, 1998; matures $ 2,224.33 --
April 30, 2003; 9.5% interest rate;
vested account balance used for
collateral
Originated September 11, 1998; $ 5,144.53 118.97
matures September 30, 2001;
9.25% interest rate; vested account
balance used forcollateral
</TABLE>
*Unpaid balance represents principal and accrued interest.
Page 22
<PAGE>
Schedule 3
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
Line 27d--Schedule of Reportable Transactions(1)
Year ended December 31, 1998
<TABLE>
<CAPTION>
PURCHASE SELLING
IDENTITY OF PARTY INVOLVED DESCRIPTION OF ASSET PRICE PRICE
- -------------------------- -------------------- -------- ------------
<S> <C> <C> <C>
Series of transactions:
Kaufmann Fund, Inc. Kaufmann Fund $ 791,065 --
Kaufmann Fund, Inc. Kaufmann Fund -- 2,022,079
AIM Investment Securities
Funds AIM Value Fund A 4,182,212 --
AIM Investment Securities
Funds AIM Value Fund A -- 632,493
American Funds WM Investors Fund 1,071,843 --
American Funds WM Investors Fund 301,737
Templeton Foreign Fund Templeton Foreign Fund 375,171 --
Templeton Foreign Fund Templeton Foreign Fund -- 1,064,203
Single transaction:
AIM Investment Securities
Funds AIM Value Fund A 2,794,602 --
AIM Investment Securities
Funds AIM Value Fund B -- 2,794,602
</TABLE>
<TABLE>
<CAPTION>
CURRENT VLAUE
OF ASSET ON
COST OF TRANSACTION NET
ASSET DATE GAIN OR (LOSS)
- ------------ ---------------------- ----------------
<S> <C> <C>
791,065 791,065 --
2,117,722 2,022,079 (95,643)
4,182,212 4,182,212 --
569,880 632,493 62,613
1,071,843 1,071,843 --
229,763 301,737 71,974
375,171 375,171 --
1,249,219 1,064,203 (185,016)
2,794,602 2,794,602 --
2,794,602 2,794,602 --
</TABLE>
(1) Reportable transactions as defined in the Department of Labor's
reporting regulations consist of (a) a single transaction in excess
of 5% of the current value of Plan assets, (b) a series of
transactions with or in conjunction with the same person, involving
property other than securities, which amount in the aggregate to
more than 5% of the current value of Plan assets, (c) a series of
transactions with respect to securities of the same issue which
amount in the aggregate to more than 5% of the current value of
total Plan assets and (d) any transaction with respect to securities
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 that same person in an amount in excess of 5% of
the current value of Plan assets. The current value of Plan assets,
to apply the definition of reportable transactions, is determined
at the beginning of the Plan year.
Page 23
<PAGE>
Schedule 4
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
Line 27e - Schedule of Nonexempt Transactions
Year ended December 31, 1998
<TABLE>
<CAPTION>
Relationship
to Plan,
employer or
Identity of party other Description of Cost of
involved party-in-interest transaction asset
- ------------------- --------------- ----------------- ---------
<S> <C> <C> <C>
IDX Systems Plan sponsor Failure to $ 49,518
Corporation transmit
participant
contributions
as soon as
reasonably
segregable.
</TABLE>
During 1998, the Sponsor failed to transmit several payroll
period contributions amounting to $327,589 as soon as
reasonably segregable. The participants' contributions were
subsequently restored, and the participants' accounts
will be credited with $49,518 of
lost earnings thereon.
Page 24
EXHIBIT 23
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The Board Of Directors
IDX Systems Corporation
We consent to incorporation by reference in the registration statement (No.
333-31045) on Form S-8 of IDX Systems Corporation of our report dated May 13,
1999 relating to the statements of net assets available for benefits of PHAMIS
Inc. Salary Savings and Deferral Plan as of December 31, 1998 and 1997, and the
statements of changes in net assets available for benefits for the years then
ended, and the related supplementary schedules as of and for the year ended
December 31, 1998, which report appears in the December 31, 1998 annual report
on Form 11-K of PHAMIS Inc. Salary Savings and Deferral Plan.
/s/ KPMG LLP
KPMG LLP
Seattle, Washington
June 28, 1999
Page 25
