<PAGE>
EXHIBIT 99.1
Navigant International
401(k) Plan
Financial Statements and
Supplemental Schedule
December 31, 1999 and 1998
<PAGE>
Navigant International
401(k) Plan
Index
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Page
<S> <C>
Financial Statements:
Report of Independent Accountants 1
Statement of Net Assets Available for Benefits 2
Statement of Changes in Net Assets Available for Benefits 3
Notes to Financial Statements 4-11
Supplemental Schedule:
Schedule I - Schedule of Assets Held for Investment Purposes at End
of Year 12-13
</TABLE>
<PAGE>
Report of Independent Accountants
To the Participants and Administrator
of the Navigant International 401(k) Plan
In our opinion, the accompanying statements of net assets available for benefits
and the related statements of changes in net assets available for benefits
present fairly, in all material respects, the net assets available for benefits
of the Navigant International 401(k) Plan (the "Plan") at December 31, 1999 and
1998, and the changes in net assets available for benefits for the year ended
December 31, 1999 and the period June 10, 1998 (inception) to December 31, 1998
in conformity with accounting principles generally accepted in the United
States. 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 of these statements in
accordance with auditing standards generally accepted in the United States which
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, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for the opinion expressed above.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule of assets held
for investment purposes is presented for the purpose of additional analysis and
is not a required part of the basic financial statements but is 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. This supplemental schedule is the responsibility of the Plan's management.
The supplemental schedule has been subjected to the auditing procedures applied
in the audits of the basic financial statements and, in our opinion, is fairly
stated in all material respects in relation to the basic financial statements
taken as a whole.
June 15, 2000
<PAGE>
Navigant International
401(k) Plan
Statement of Net Assets Available for Benefits
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
December 31,
1999 1998
<S> <C> <C>
Assets
Investments, at fair value $ 25,757,742 $ 11,398,573
Receivables:
Employer contributions - 32,312
Employee contributions - 195,633
Participant notes 618,506 235,155
------------- -------------
618,506 463,100
------------- -------------
Net assets available for benefits $ 26,376,248 $ 11,861,673
------------- -------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
Navigant International
401(k) Plan
Statement of Changes in Net Assets Available for Benefits
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Period June 10,
1998 (Inception)
Year Ended to
December 31, December 31,
1999 1998
<S> <C> <C>
Additions to net assets attributed to:
Investment income:
Interest $ 160,430 $ 34,287
Net appreciation in fair value of investments 4,603,865 291,030
---------------- ----------------
4,764,295 325,317
---------------- ----------------
Contributions:
Employer 661,305 328,093
Employee 4,558,711 2,246,424
---------------- ----------------
5,220,016 2,574,517
Transfer from affiliated plan 189,403 9,453,530
---------------- ----------------
Total additions 10,173,714 12,353,364
Deductions from net assets attributed to:
Benefit payments 1,951,400 482,766
Transaction charge 24,308 5,603
Participant notes receivable terminated
due to withdrawal of participant 116,561 2,136
---------------- ----------------
Total deductions 2,092,269 490,505
Change in forfeiture reserve, net (24,930) (1,186)
---------------- ----------------
Net increase prior to plan merger 8,056,515 11,861,673
Transfer of assets due to plan merger 6,458,060 -
---------------- ----------------
Net increase 14,514,575 11,861,673
Net assets available for benefits at beginning of
the year and period 11,861,673 -
---------------- ----------------
Net assets available for benefits at end of
the year and period $ 26,376,248 $ 11,861,673
---------------- ----------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
Navigant International
401(k) Plan
Notes to Financial Statements
--------------------------------------------------------------------------------
1. Description of Plan
The following description of the Navigant International 401(k) Plan (the
"Plan") provides only general information. Participants should refer to the
Plan agreement for a more complete description of the Plan's provisions.
General
The Plan is a defined contribution plan established effective June 10, 1998
and most recently amended September 27, 1999, retroactively effective May
1, 1999. Non-union employees of Navigant International, Inc. (the
"Company") become eligible to participate upon completing six months of
service and attaining the age of 21. The Plan is subject to the provisions
of the Employee Retirement Income Security Act of 1974 ("ERISA").
Contributions
Participants may contribute an amount equal to not less than 1 percent nor
more than 15 percent of their compensation for the contribution period.
Participants direct the investment of their contributions into various
investment options offered by the Plan. The Plan currently offers a general
account and 21 pooled separate accounts as investment options for
participants. Effective May 1, 1999, Company stock was added as an
investment option for participants. Employee contributions are recorded in
the period during which the Company makes payroll deductions from the
participant's earnings.
The Company will make a matching contribution in an amount equal to a
discretionary percentage. The Company may also make additional matching and
discretionary nonelective contributions. Matching Company contributions are
recorded in the same period as employee contributions. Additional matching
and discretionary nonelective contributions, if any, are recorded annually.
Participant Accounts
Each participant's account is credited with the participant's contribution
and allocation of the Company's contribution and plan earnings. Allocations
are based on participant earnings or account balances, as defined. The
benefit to which a participant is entitled is the benefit that can be
provided from the participant's vested account.
4
<PAGE>
Navigant International
401(k) Plan
Notes to Financial Statements
--------------------------------------------------------------------------------
Vesting
Participants are immediately vested in their voluntary contributions plus
actual earnings thereon. The balance of vesting in the participants'
accounts is based on years of service. A participant becomes 25 percent
vested after two years of service, 50 percent vested after three years of
service, 75 percent vested after four years of service and 100 percent
vested after five years of service. However, if an active participant dies
prior to attaining the normal retirement age, the participant's account
becomes 100 percent vested.
Payment of Benefits
On termination of service, a participant may elect to receive either a
lump-sum amount equal to the value of the vested portion of his or her
account, a distribution in the form of an annuity, or installment payments.
Distributions are subject to the applicable provisions of the Plan
agreement. Benefit claims are recorded as expenses when they have been
approved for payment and paid by the Plan.
Participant Notes Receivable
Participants may borrow up to a maximum of $50,000 or 50 percent of the
vested portion of his or her account balance, whichever is less. Loans are
treated as a transfer to/from the investment fund from/to Participant Notes
Receivable. A loan is secured by the balance in the participant's account
and bears interest at a rate commensurate with market rates for similar
loans, as defined (7.50% to 10.50% for the year ended December 31, 1999 and
7.25% to 10.25% for the period ended December 31, 1998).
Cash Equivalents
Contributions received prior to year end awaiting investment in the
appropriate investment option at December 31 are invested in the CIGNA
Charter Guaranteed Short-Term Account, which is recorded at fair value, and
are included within the fund in which units are subsequently purchased.
5
<PAGE>
Navigant International
401(k) Plan
Notes to Financial Statements
--------------------------------------------------------------------------------
2. Summary of Accounting Policies
Method of Accounting
The Plan's financial statements are prepared on the accrual basis of
accounting. The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and changes therein. Actual results could differ from those
estimates.
Amounts shown by investment fund option on the statement of net assets
available for benefits as of December 31, 1998 and the statement of changes
in net assets available for benefits for the period June 10, 1998
(inception) to December 31, 1998 have been reclassified to be shown in
total to conform to the current year presentation in order to adopt AICPA
Statement of Position 99-3, "Accounting for and Reporting of Certain
Defined Contribution Plan Investments and Other Disclosure Matters."
Investment Valuation
Investments in pooled separate accounts are recorded at fair value, as
determined by the unit value reported by Connecticut General Life Insurance
Company ("CG Life"). Investments in the general account are non-fully
benefit responsive and are recorded at fair value. Participant notes
receivable are valued at cost which approximates fair value. The Company
Stock is valued at its quoted market price.
6
<PAGE>
Navigant International
401(k) Plan
Notes to Financial Statements
--------------------------------------------------------------------------------
3. Investments
Investments that represent 5 percent or more of the Plan's net assets are
separately identified below.
<TABLE>
<CAPTION>
December 31,
1999 1998
<S> <C> <C>
CIGNA Charter Guaranteed Income Fund $ 2,709,664 $ 1,799,408
interest rates, 4.85%; 5.20%
CIGNA Charter Large Company Stock Index Fund 1,637,977 N/A
units, 21,692; N/A
CIGNA Fidelity Advisor Growth Opportunities Fund 5,765,927 4,544,090
units, 73,181; 59,704
CIGNA INVESCO Dynamics Fund 2,442,639 N/A
units, 66,089; N/A
CIGNA PBHG Growth Fund 3,081,938 1,282,207
units, 63,532; 50,700
CIGNA Templeton Foreign Fund 1,447,740 711,705
units, 95,877; 65,414
CIGNA Lifetime30 Fund 1,617,076 941,597
units, 71,205; 49,741
CIGNA Lifetime40 Fund N/A 693,005
units, N/A; 37,745
</TABLE>
7
<PAGE>
Navigant International
401(k) Plan
Notes to Financial Statements
--------------------------------------------------------------------------------
Investment Performance
During 1999 and 1998, the Plan's investments (including gains and losses on
investments bought and sold, as well as held during the year) appreciated
in value by $4,764,295 and $325,317, respectively, as follows:
<TABLE>
<CAPTION>
Period June 10,
1998
Year Ended (Inception) to
December 31, December 31,
1999 1998
<S> <C> <C>
General Account:
CIGNA Charter Guaranteed Income Fund $ 122,036 $ 25,052
Pooled Separate Accounts:
CIGNA Charter Large Company Stock Index Fund 228,122 18,010
CIGNA Fidelity Advisor Growth Opportunities Fund 189,590 310,261
CIGNA Warburg Pincus Advisor International
Equity Fund 5,813 42
CIGNA Warburg Pincus Advisor Emerging Growth Fund 24,810 6,646
CIGNA Warburg Pincus Advisor Growth & Income Fund 19,781 93
CIGNA INVESCO Total Return Fund (9,075) 1,258
CIGNA INVESCO Dynamics Fund 850,226 10,594
CIGNA American Century - Twentieth Century
Ultra Fund 217,506 17,304
CIGNA PBHG Growth Fund 1,431,798 (32,854)
CIGNA AIM Constellation Fund 56,410 2,349
CIGNA Founders Growth Fund 116,778 7,755
CIGNA Founders Balanced Fund (2,283) 264
CIGNA Janus Worldwide Fund 330,386 6,047
CIGNA Neuberger Berman Guardian Trust 2,926 600
CIGNA Templeton Growth Fund 6,041 32
CIGNA Templeton Foreign Fund 386,243 (71,650)
CIGNA Lifetime20 Fund 154,974 (1,930)
CIGNA Lifetime30 Fund 242,595 2,905
CIGNA Lifetime40 Fund 181,604 14,457
CIGNA Lifetime50 Fund 44,560 (1,611)
CIGNA Lifetime60 Fund 16,229 458
------------- -------------
4,495,034 291,030
Company Stock:
Navigant International Stock 108,831 -
Participant Notes Receivable 38,394 9,235
------------- -------------
Net increase $ 4,764,295 $ 325,317
============= =============
</TABLE>
8
<PAGE>
Navigant International
401(k) Plan
Notes to Financial Statements
--------------------------------------------------------------------------------
4. Investment Contract with Insurance Company
The Plan participates in a contract with CG Life via an investment in the
CIGNA Charter Guaranteed Income Fund. CG Life commingles the assets of the
CIGNA Charter Guaranteed Income Fund with other assets. For the Plan's
investment in the CIGNA Charter Guaranteed Income Fund the Plan is credited
with interest at the rate specified in the contract, which was 4.85% for
the year ended December 31, 1999 and ranged from 5.30% to 5.20% for the
period ended December 31, 1998, net of asset charges. CG Life prospectively
guaranteed the interest rates credited for the CIGNA Charter Guaranteed
Income Fund for six months. As discussed in Note 2, the CIGNA Charter
Guaranteed Income Fund is included in the financial statements at fair
value which, principally because of the periodic rate reset process,
approximates contract value.
5. Related-Party Transactions
Plan assets include investments in funds managed by CG Life, a wholly owned
division of CIGNA. CIGNA is the Plan's trustee and as such, transactions
with the trustee qualify as party-in-interest transactions. Personnel and
facilities of the Company have been used to perform administrative
functions for the Plan at no charge to the Plan. In addition, the Plan
holds shares of Navigant International, Inc., the Plan Sponsor, which also
qualifies as a party-in-interest.
6. Plan Termination
Although it has not expressed any intent to do so, the Company has the
right under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of ERISA. In the event of Plan
termination, participants will become 100 percent vested in their accounts.
7. Tax Status
The Internal Revenue Service has determined and informed the Company by a
letter dated September 22, 1999, 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's administrator believes that the Plan is
designed and is currently being operated in compliance with the applicable
requirements of the IRC. Therefore, no provision for income taxes has been
included in the Plan's financial statements.
Nondiscrimination testing in accordance with the IRC was not completed for
the 1999 plan year. Management is in process of performing the testing.
Management intends to take the appropriate steps to facilitate the
continued tax qualified status of the Plan.
9
<PAGE>
Navigant International
401(k) Plan
Notes to Financial Statements
--------------------------------------------------------------------------------
8. Reconciliation of Plan Financial Statements to the Form 5500
The Annual Return/Report of Employee Benefit Plan (the "Form 5500") is
prepared on the modified cash basis. Accordingly, certain balances included
on lines 31 and 32 of the Form 5500 differ from those included in these
financial statements. Contributions in the statement of changes in net
assets available for benefits differ from contributions in the Form 5500 by
the amount of contributions accrued at December 31, 1998. The ending net
asset balances are reconciled as follows:
<TABLE>
<CAPTION>
December 31,
1998
<S> <C>
Net assets, reflected on Form 5500 $ 11,633,728
Add: Employer contributions receivable 32,312
Employee contributions receivable 195,633
----------------
Net assets, reflected in the financial statements $ 11,861,673
----------------
</TABLE>
9. Transfer From Affiliated Plan
Effective July 1, 1998, certain assets of the U.S. Office Products 401(k)
Retirement Plan, an affiliated plan, were transferred to the Plan and
certain participants became eligible to participate in the Plan subject to
the provisions of the Plan agreement.
10. Plan Mergers
In 1999, certain assets attributable to the employees of Bowers WorldWide
Travel, McGregor Travel, Arrington Travel, Omni Travel and World Express
Travel were transferred to the Plan and certain employees became eligible
to participate in the Plan subject to the provisions of the Plan agreement.
10
<PAGE>
Navigant International
401(k) Plan
Notes to Financial Statements
--------------------------------------------------------------------------------
11. Forfeitures
The net change in forfeiture reserve represents the net change in the
available forfeiture reserve balance from the prior year plus the current
year forfeitures generated. Forfeitures result from nonvested benefit
payments remaining in the Plan for all terminated employees. Upon reaching
the break-in-service requirement, as defined in the Plan agreement,
forfeitures generated are added to the forfeiture reserve balance. The
forfeiture reserve of $70,972 and $895 at December 31, 1999 and 1998,
respectively, is included in the CIGNA Charter Guaranteed Income Fund and
is available to offset contributions or pay Plan expenses, which would be
otherwise payable by the Company, in accordance with the Plan agreement.
12. Subsequent Events
In 2000, certain assets attributable to the employees of First Travel
Corporation and Dollinger Travel were transferred to the Plan and certain
employees became eligible to participate in the Plan subject to the
provisions of the Plan agreement.
11
<PAGE>
Navigant International Supplemental Schedule
401(k) Plan Schedule I
Schedule H (Part IV) Form 5500 - Schedule of Assets
Held for Investment Purposes at End of Year
December 31, 1999
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(c)
(b) Description of investment including
Identity of Issue, borrower, maturity date, rate of interest, (d) (e)
(a) lessor, or similar party collateral, par or maturity value Cost Current value
<S> <C> <C> <C> <C>
* Connecticut General Life CIGNA Charter Guaranteed Income Fund N/A** $ 2,709,664
Insurance Company
* Connecticut General Life CIGNA Charter Large Company N/A** 1,637,977
Insurance Company Stock Index Fund
* Connecticut General Life CIGNA Fidelity Advisor N/A** 5,765,927
Insurance Company Growth Opportunities Fund
* Connecticut General Life CIGNA Warbug Pincus Advisor N/A** 22,206
Insurance Company International Equity Fund
* Connecticut General Life CIGNA Warburg Pincus Advisor N/A** 90,119
Insurance Company Emerging Growth Fund
* Connecticut General Life CIGNA Warburg Pincus Advisor N/A** 362,238
Insurance Company Growth & Income Fund
* Connecticut General Life CIGNA INVESCO Total Return Fund N/A** 360,660
Insurance Company
* Connecticut General Life CIGNA INVESCO Dynamics Fund N/A** 2,442,639
Insurance Company
* Connecticut General Life CIGNA American Century - N/A** 944,662
Insurance Company Twentieth Century Ultra Fund
* Connecticut General Life CIGNA PBHG Growth Fund N/A** 3,081,938
Insurance Company
* Connecticut General Life CIGNA AIM Constellation Fund N/A** 218,939
Insurance Company
* Connecticut General Life CIGNA Founders Growth Fund N/A** 518,013
Insurance Company
</TABLE>
* Indicates an identified person known to be a party-in-interest to the
Plan.
** Cost information has been omitted for participant-directed investments.
12
<PAGE>
Navigant International Supplemental Schedule
401(k) Plan Schedule I
Schedule H (Part IV) Form 5500 - Schedule of Assets
Held for Investment Purposes at End of Year
December 31, 1999 (continued)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(c)
(b) Description of investment including
Identity of Issue, borrower, maturity date, rate of interest, (d) (e)
(a) lessor, or similar party collateral, par or maturity value Cost Current value
<S> <C> <C> <C> <C>
* Connecticut General Life CIGNA Founders Balanced Fund N/A** $ 347,606
Insurance Company
* Connecticut General Life CIGNA Janus Worldwide Fund N/A** 985,884
Insurance Company
* Connecticut General Life CIGNA Neuberger Berman Guardian Trust N/A** 62,071
Insurance Company
* Connecticut General Life CIGNA Templeton Growth Fund N/A** 63,421
Insurance Company
* Connecticut General Life CIGNA Templeton Foreign Fund N/A** 1,447,740
Insurance Company
* Connecticut General Life CIGNA Lifetime20 Fund N/A** 842,426
Insurance Company
* Connecticut General Life CIGNA Lifetime30 Fund N/A** 1,617,076
Insurance Company
* Connecticut General Life CIGNA Lifetime40 Fund N/A** 1,249,252
Insurance Company
* Connecticut General Life CIGNA Lifetime50 Fund N/A** 408,704
Insurance Company
* Connecticut General Life CIGNA Lifetime60 Fund N/A** 277,737
Insurance Company
* National Financial Navigant International, Inc. N/A** 299,239
Services Corporation Common Stock
* Plan Participants Participant Notes Receivable N/A** 618,506
* Connecticut General Life Cash Equivalents (CIGNA Charter N/A** 1,604
Insurance Company Guaranteed Short-Term Account)
</TABLE>
* Indicates an identified person known to be a party-in-interest to the
Plan.
** Cost information has been omitted for participant-directed investments.
13
