SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
____ Annual Report pursuant to Section 15(3)
/ X / of the SECURITIES EXCHANGE ACT of 1934
---- [Fee Required]
For the Fiscal Year Ended December 31, 1993
____ Transition Report pursuant to Section 15(d)
/ / of the SECURITIES EXCHANGE ACT of 1934
---- [No Fee Required]
A. Full title of the Plan and the address of the Plan, if
different from that of the issuer named below:
LINCOLN TELECOMMUNICATIONS COMPANY 401(k) SAVINGS AND STOCK
OWNERSHIP PLAN, AS AMENDED
B. Name of issuer of the securities held pursuant to the Plan
and the address of its principal executive office:
LINCOLN TELECOMMUNICATIONS COMPANY
1440 M Street
P. O. Box 81309
Lincoln, Nebraska 68501-1309
(402) 474-2211
KPMG Peat Marwick
LINCOLN TELECOMMUNICATIONS COMPANY
401(k) SAVINGS AND STOCK OWNERSHIP PLAN
Financial Statements and Schedules
December 31, 1993 and 1992
(With Independent Auditors' Report Thereon)
LINCOLN TELECOMMUNICATIONS COMPANY
401(k) SAVINGS AND STOCK OWNERSHIP PLAN
Financial Statements and Schedules
Table of Contents
Independent Auditors' Report
Statements of Net Assets Available for Plan Benefits
Statements of Changes in Net Assets Available for Plan Benefits
Notes to Financial Statements
Schedules:
Schedule 1, Item 27a - Schedule of Assets Held for Investment Purposes
Schedule 2, Schedule of Changes in Net Assets Available for Plan
Benefits by Investment Fund at December 31, 1993
KPMG Peat Marwick
Certified Public Accountants
1600 FirsTier Bank Building
Lincoln, NE 68508
Two Central Park Plaza
Suite 1501
Omaha, NE 68102
INDEPENDENT AUDITORS' REPORT
The 401(k) Savings and Stock Ownership Plan Committee
Lincoln Telecommunications Company:
We have audited the accompanying statements of net assets available for plan
benefits of the Lincoln Telecommunications Company 401(k) Savings and Stock
Ownership Plan as of December 31, 1993 and 1992, and the related statements
of changes in net assets available for plan benefits for each of the years in
the three-year period ended December 31, l993. 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 audits 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 plan benefits as of
December 31, 1993 and 1992, and the changes in net assets available for plan
benefits for each of the years in the three-year period ended December 31,
l993, in conformity with generally accepted accounting principles.
Our audits were performed for the purposes of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
held for investment purposes and changes in net assets available for plan
benefits by investment fund 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 statement of changes in
net assets available for plan benefits is presented for purposes of
additional analysis rather than to present the changes in net assets available
for plan benefits of each fund. The supplemental schedules and fund
information have been subjected to the auditing procedures applied in the
basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements taken
as whole.
/s/KPMG Peat Marwick
May 13, 1994
<TABLE>
LINCOLN TELECOMMUNICATIONS COMPANY
401(k) SAVINGS AND STOCK OWNERSHIP PLAN
Statements of Net Assets Available for Plan Benefits
December 31, 1993 and 1992
<CAPTION>
1993 1992
<S> <C> <C>
Investments:
Fidelity mutual funds:
Cash reserve $ 1,842,796 2,108,810
Equity income 4,482,611 3,318,233
Intermediate bond 2,200,280 1,771,684
Retirement growth 3,753,553 2,615,905
LTEC stock fund 5,445,878 3,036,152
Insurance contracts 309,015 286,243
------------ ------------
18,034,133 13,137,027
------------ ------------
Contributions receivable:
Employer 431,774 409,461
Employee 107,757 93,384
------------ ------------
539,531 502,845
------------ ------------
Net assets available for
plan benefits
(notes 2 and 3) $ 18,573,664 13,639,872
============ ============
See accompanying notes to financial statements.
</TABLE>
<TABLE>
LINCOLN TELECOMMUNICATIONS COMPANY
401(k) SAVINGS AND STOCK OWNERSHIP PLAN
Statements of Changes in Net Assets
Available for Plan Benefits
Years ended December 31, 1993, 1992 and 1991
<CAPTION>
1993 1992 1991
<S> <C> <C> <C>
Additions:
Contributions (note 3):
Employer $ 637,558 598,774 558,779
Employee 1,347,379 1,227,598 1,155,639
------------ ------------ ------------
Total contributions 1,984,937 1,826,372 1,714,418
Dividends 796,746 807,517 402,327
Interest 76,315 93,529 125,136
Realized gain (loss) on sale
of assets 50,967 29,394 (4,249)
Net appreciation in fair
value of investments 2,449,784 263,657 834,642
------------ ------------ ------------
Total additions 5,358,749 3,020,469 3,072,274
------------ ------------ ------------
Deductions:
Withdrawals by participants (422,805) (280,877) (435,234)
Life insurance premiums paid (2,152) (2,863) (3,779)
------------ ------------ ------------
Total deductions (424,957) (283,740) (439,013)
------------ ------------ ------------
Net increase in net
assets available for
plan benefits 4,933,792 2,736,729 2,633,261
Net assets for plan benefits,
beginning of year 13,639,872 10,903,143 8,269,882
------------ ------------ ------------
Net assets available for plan
benefits, end of year $18,573,664 13,639,872 10,903,143
============ ============ ============
See accompanying notes to financial statements.
</TABLE>
LINCOLN TELECOMMUNICATIONS COMPANY
401(k) SAVINGS AND STOCK OWNERSHIP PLAN
Notes to Financial Statements
December 31, 1993 and 1992
(1) Summary of Significant Accounting Polices
Basis of Presentation
The accompanying financial statements of the Lincoln Telecommunications
Company 401(k) Savings and Stock Ownership Plan (the Plan) have been
prepared on the accrual basis of accounting and present the net assets
available for Plan benefits and changes in those net assets.
Management of Trust Funds
National Bank of Commerce Trust and Savings Association (NBC) is the
trustee for the stock fund of the Plan and the 401(k) Savings and Stock
Ownership Plan Committee (the Committee) is the trustee for all other
funds of the Plan. Under terms of the Plan agreement, and as appointed
by the trustee, the trust funds are managed by the Fidelity Investment
Company, Woodmen Accident Life Insurance Company and NBC.
Investment Valuation
The Plan investment portfolio consists primarily of investments in
mutual funds which are recorded at their market value and common stock
of the Lincoln Telecommunications Company (the Company) held in the
stock fund which is carried at market value. The Equity Income fund is
a growth and income fund investing primarily in common stocks. The
Intermediate Bond fund is an income fund investing in high and medium
grade corporate bonds. The Retirement Growth fund is an aggressive
growth fund investing primarily in common stocks. Investments in the
insurance contracts represent contributions made plus interest earned
on the investments.
Administrative Costs
Administrative costs of the Plan are paid by the Company and its
subsidiaries, The Lincoln Telephone and Telegraph Company (LT&T)
and LinTel Systems Inc. (LinTel).
(2) Benefits
The Plan is a defined contribution plan sponsored by the Company. Under
terms of the agreement, the Plan covers any nonunion employee of the
Company, LT&T or LinTel who has completed one year of service. Each
participant's account is credited with the participant's contributions,
an allocation of Plan earnings and employer matching contributions and
employee stock ownership contributions. Employer matching contributions
are allocated among participants' accounts in proportion to the
participants' contributions. Participants are fully vested in the
employer's contributions after completing five years of service.
(Continued)
2
LINCOLN TELECOMMUNICATIONS COMPANY
401(k) SAVINGS AND STOCK OWNERSHIP PLAN
Notes to Financial Statements
(2) Benefits, Continued
All contributions are held by the Plan and may not be distributed to
participants or other beneficiaries earlier than upon death, disability
or separation from service, hardship or the attainment of age 59-1/2
years. There are no provisions in the Plan for loans. All employee
contributions are invested according to each participant's election.
Distributions from the Plan may be made by a lump-sum distribution, an
annuity or annual installments for a period not to exceed the life
expectancy of the participant.
(3) Contributions
Participants can elect to deposit from 1 percent to 15 percent of their
wages in the Plan. The first 5 percent is matched $.25 on the dollar
by the Company. Participants' deposits in excess of 5 percent have no
Company matching contribution. The Plan includes a provision for an
employee stock ownership fund. In 1993, 1992 and 1991, the Company
contributed an additional 1.75 percent of each eligible participant's
salary rate to the employee stock ownership fund. The additional
employee stock ownership contribution amounted to approximately $413,000,
$393,000 and $364,000, and is included in the employers' contribution
receivable as of December 31, 1993, 1992 and 1991, respectively. Plan
forfeitures serve as a reduction of Company contributions. Although the
Company has not expressed any intent to terminate the Plan, it may do
so at any time. In case of termination of the Plan, all balances will
be distributed to the participants.
(4) Federal Income Taxes
The Plan is a qualified Plan under Sections 401(a) and (k) of the
Internal Revenue Code of 1986 (Code), as amended and, therefore, it is
exempt from Federal income taxes under Section 501(a) of the Code.
(5) Reportable Transactions
There were no reportable transactions for the Plan years ended
December 31, 1993 and 1992.
<TABLE>
Schedule 1
LINCOLN TELECOMMUNICATIONS COMPANY
401(k) SAVINGS AND STOCK OWNERSHIP PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
December 31, 1993
<CAPTION>
Shares/ Market
face value Cost value
<S> <C> <C> <C>
Mutual funds:
Cash reserve 1,842,796 $ 1,842,796 1,842,796
Equity income 132,465 3,575,349 4,482,611
Intermediate bond 204,108 2,121,916 2,200,280
Retirement growth 206,921 3,303,072 3,753,553
LTEC stock fund 147,186 3,684,219 5,445,878
Insurance contract, Woodmen Accident
and Life Insurance Company 309,015 309,015 309,015
=========== =========== ===========
Total assets held for
investment purposes $ 14,836,367 18,034,133
=========== ===========
</TABLE>
<TABLE>
Schedule 2
LINCOLN TELECOMMUNICATIONS COMPANY
401(k) SAVINGS AND STOCK OWNERSHIP PLAN
Schedule of Changes in Net Assets Available for
Plan Benefits by Investment Fund
Year ended December 31, 1993
<CAPTION>
Fidelity Investments
---------------------------------------------
Cash Equity Intermediate Retirement LTEC
reserve income bond growth stock Insurance
fund fund fund fund fund contracts Total
------- ------ ------------ ---------- ----- --------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Contributions:
Employer $ - - - 637,558 - 637,558
Employee 180,844 402,042 210,430 360,242 170,061 23,760 1,347,379
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total contributions 180,844 402,042 210,430 360,242 807,619 23,760 1,984,937
----------- ----------- ----------- ----------- ----------- ----------- -----------
Investment income:
Dividends - 158,777 158,018 353,332 126,619 - 796,746
Interest 55,331 - - - - 20,984 76,315
Gain on sale of investments - 16,226 5,042 10,457 19,242 - 50,967
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total investment income 55,331 175,003 163,060 363,789 145,861 20,984 924,028
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net appreciation in fair value of
investments - 566,190 58,346 285,119 1,540,129 - 2,449,784
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total additions 236,175 1,143,235 431,836 1,009,150 2,493,609 44,744 5,358,749
----------- ----------- ----------- ----------- ----------- ----------- -----------
Deductions from net assets attributed to:
Distributions to and withdrawals
by participants 217,402 61,483 56,543 15,591 63,840 7,946 422,805
Life insurance premiums paid - - - - - 2,152 2,152
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total deductions 217,402 61,483 56,543 15,591 63,840 10,098 424,957
Interfund transfers (288,428) 90,244 55,852 150,229 3,885 (11,782) -
----------- ----------- ----------- ----------- ----------- ----------- -----------
Increase (decrease) in net assets
available for plan benefits (269,655) 1,171,996 431,145 1,143,788 2,433,654 22,864 4,933,792
Net assets available for plan benefits:
Balance at beginning of year 2,124,682 3,344,611 1,785,858 2,638,890 3,457,782 288,049 13,639,872
----------- ----------- ----------- ----------- ----------- ----------- -----------
Balance at end of year $ 1,855,027 4,516,607 2,217,003 3,782,678 5,891,436 310,913 18,573,664
=========== =========== =========== =========== =========== =========== ===========
NOTE: This schedule has been prepared on the accrual basis.
</TABLE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the plan) have duly caused this
Annual Report to be signed on its behalf by the undesigned thereunto duly
authorized.
LINCOLN TELECUMMUNICATIONS COMPANY
401(K) SAVINGS AND STOCK OWNERSHIP
PLAN, AS AMENDED
------------------------------------
(Name of Plan)
By: /s/Michael J. Tavlin
Vice President-Treasurer &
Secretary
Date: June 28, 1994
