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