SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
X Annual Report pursuant to Section 15(d) of the
--- SECURITIES EXCHANGE ACT OF 1934
[Fee Required]
For the Fiscal Year Ended December 31, 1994
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, NE 68501-1309
(402) 474-2211
KPMG
LINCOLN TELECOMMUNICATIONS COMPANY
401(k) SAVINGS AND STOCK OWNERSHIP PLAN
Financial Statements and Schedules
December 31, 1994 and 1993
(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, 1994
KPMG Peat Marwick LLP
233 South 13th Street, Suite 1600
Lincoln, NE 68508-2041
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, 1994 and 1993, 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, l994. 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, 1994 and 1993, and the changes in net assets available for plan
benefits for each of the years in the three-year period ended December 31,
l994, 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 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. 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 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 whole.
/s/ KPMG Peat Marwick LLP
May 19, 1995
<TABLE>
LINCOLN TELECOMMUNICATIONS COMPANY
401(k) SAVINGS AND STOCK OWNERSHIP PLAN
Statement of Net Assets Available for Plan Benefits
December 31, 1994 and 1993
<CAPTION>
1994 1993
<S> <C> <C>
Investments:
Fidelity mutual funds:
Cash reserve $ 1,876,295 1,842,796
Equity income 4,919,254 4,482,611
Intermediate bond 2,208,651 2,200,280
Retirement growth 4,178,302 3,753,553
Lincoln Telecommunications Company stock fund 6,111,823 5,445,878
Insurance contract 343,876 309,015
---------- ----------
19,638,201 18,034,133
Contributions receivable:
Employer 455,043 431,774
Employee 173,393 107,757
---------- ----------
628,436 539,531
---------- ----------
Net assets available for plan benefits
(notes 2 and 3) $20,266,637 18,573,664
========== ==========
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, 1994, 1993 and 1992
<CAPTION>
1994 1993 1992
<S> <C> <C> <C>
Additions:
Contributions (note 3):
Employer $ 673,166 637,558 598,774
Employee 1,571,850 1,347,379 1,227,598
---------- ---------- ----------
Total contributions 2,245,016 1,984,937 1,826,372
Dividends 661,910 796,746 807,517
Interest 77,901 76,315 93,529
Realized gain on sale of assets 585,798 50,967 29,394
Net appreciation (depreciation) in
fair value of investments (1,568,280) 2,449,784 263,657
---------- ---------- ----------
Total additions 2,002,345 5,358,749 3,020,469
---------- ---------- ----------
Deductions:
Withdrawals by participants (300,624) (422,805) (280,877)
Life insurance premiums and other (8,748) (2,152) (2,863)
---------- ---------- ----------
Total deductions (309,372) (424,957) (283,740)
---------- ---------- ----------
Net increase in net assets
available for plan benefits 1,692,973 4,933,792 2,736,729
Net assets for plan benefits, beginning
of year 18,573,664 13,639,872 10,903,143
---------- ---------- ----------
Net assets available for plan benefits,
end of year $ 20,266,637 18,573,664 13,639,872
========== ========== ==========
See accompanying notes to financial statements.
</TABLE>
LINCOLN TELECOMMUNICATIONS COMPANY
401(k) SAVINGS AND STOCK OWNERSHIP PLAN
Notes to Financial Statements
December 31, 1994 and 1993
(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 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 sub-
sidiaries, 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 eligible employee of
the Company, LT&T or LinTel who has completed one year of service. Each
member's account is credited with the member's contributions, an allocation
of Plan earnings and employer matching contributions and employee stock
ownership contributions. Employer matching contributions are allocated
among members' accounts in proportion to the members' contributions.
Members 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
members 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 member'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 member, or in the case of a married member, the joint life
expectancy of the member and spouse.
(3) Contributions
Members 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. Member's deposits in excess of 5 percent have no Company matching
contribution. The Plan includes a provision for an employee stock ownership
fund. In 1994, 1993 and 1992, the Company contributed an additional 1.75
percent of each eligible member's salary rate to the employee stock
ownership fund. The additional employee stock ownership contribution
amounted to approximately $427,000, $413,000 and $393,000, an is included in
the employer's contribution receivable as of December 31, 1994, 1993 and
1992, 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 by action of its board of
directors. In case of termination of the Plan, all balances will be
distributed to the members.
(4) Federal Income Taxes
It is management's belief the Plan is operating in accordance with its
qualified status and, therefore, it is exempt from Federal income taxes
under Section 501(a) of the Internal Revenue Code.
(5) Supplemental Schedule Information
a. Schedule of Assets Held for Investment Purposes - See attached
Schedule 1.
b. Schedule of Assets Held for Investment Purposes Which Were Both
Acquired and Disposed of Within the Plan Year - None
c. Schedule of Nonexempt Transactions - None
d. Schedule of Loans and/or Fixed Income Obligations - None
e. Schedule of Leases in Default or Classified as Uncollectible - None
f. Schedule of Reportable Transactions - None
The attached Schedule 2 presenting the changes in net assets available
for plan benefits by investment fund is not required by the Department of
Labor's Rules and Regulations.
<TABLE>
Schedule 1
LINCOLN TELECOMMUNICATIONS COMPANY
401(k) SAVINGS AND STOCK OWNERSHIP PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
December 31, 1994
<CAPTION>
Shares/ Market
face value Cost value
<S> <C> <C> <C>
Mutual funds:
Cash reserve 1,876,295 $ 1,876,295 1,876,295
Equity income 160,236 4,474,572 4,919,254
Intermediate bond 224,685 2,330,689 2,208,651
Retirement growth 257,285 4,176,631 4,178,302
Lincoln Telecommunications Company (LTEC)
stock fund 359,519 4,806,651 6,111,823
Insurance contract, Woodmen Accident and
Life Insurance Company 343,876 343,876 343,876
========= ---------- ----------
Total assets held for investment
purposes $18,008,714 19,638,201
========== ==========
</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, 1994
<CAPTION>
NBC Investments
----------------------------------------------
Cash Equity Intermediate Retirement LTEC
reserve income bond growth stock Insurance
fund fund fund fund fund contract Total
------- ------ ------------ ---------- ----- --------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Contributions:
Employer $ - - - - 673,166 - 673,166
Employee 161,483 501,980 225,289 459,309 196,591 27,198 1,571,850
--------- -------- --------- --------- -------- --------- ---------
Total contributions 161,483 501,980 225,289 459,309 869,757 27,198 2,245,016
--------- -------- --------- --------- -------- --------- ---------
Investment income:
Dividends - 279,498 133,063 78,529 170,820 - 661,910
Interest 57,021 - - - - 20,880 77,901
Gain on sale of investments - 194,354 486 375,697 15,261 - 585,798
--------- -------- --------- --------- -------- --------- ---------
Total investment income 57,021 473,852 133,549 454,226 186,081 20,880 1,325,609
--------- -------- --------- --------- -------- --------- ---------
Net depreciation in fair value
of investments - (462,580) (200,403) (448,811) (456,486) - (1,568,280)
--------- -------- --------- --------- -------- --------- ---------
Total additions 218,504 513,252 158,435 464,724 599,352 48,078 2,002,345
--------- -------- --------- --------- -------- --------- ---------
Deductions from net assets attributed to:
Distributions to and withdrawals
by participants (29,552) (61,082) (23,963) (121,038) (55,854) (9,135) (300,624)
Life insurance premiums and other (488) - - - (5,288) (2,972) (8,748)
--------- -------- --------- --------- -------- --------- ---------
Total deductions (30,040) (61,082) (23,963) (121,038) (61,142) (12,107) (309,372)
Interfund transfers (149,592) 6,622 (119,177) 104,970 157,177 - -
--------- -------- --------- --------- -------- --------- ---------
Increase in net assets available for
plan benefits 38,872 458,792 15,295 448,656 695,387 35,971 1,692,973
Net assets available for plan benefits:
Balance at beginning of year 1,855,027 4,516,607 2,217,003 3,782,678 5,891,436 310,913 18,573,664
--------- --------- --------- --------- --------- ------- ----------
Balance at end of year $ 1,893,899 4,975,399 2,232,298 4,231,334 6,586,823 346,884 20,266,637
========= ========= ========= ========= ========= ======= ==========
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 undersigned thereunto duly
authorized.
LINCOLN TELECOMMUNICATIONS COMPANY
401(k) SAVINGS AND STOCK OWNERSHIP PLAN,
AS AMENDED
BY: /s/ Robert L. Tyler
Robert L. Tyler
Senior Vice President-
Chief Financial Officer
Date: June 28, 1995
