1
POLICY MANAGEMENT SYSTEMS CORPORATION
401(K) RETIREMENT SAVINGS PLAN
FINANCIAL STATEMENTS
AND SUPPLEMENTAL SCHEDULES
For the year ended December 31, 1999
With Report of Independent Accountants
<PAGE>
<TABLE>
<CAPTION>
POLICY MANAGEMENT SYSTEMS CORPORATION
401(K) RETIREMENT SAVINGS PLAN
Index to Financial Statements and Supplemental Schedules
<S> <C>
Page
REPORT OF INDEPENDENT ACCOUNTANTS. . . . . . . . . . . . . . . . . . . . 2
FINANCIAL STATEMENTS:
Statements of Net Assets Available for Plan Benefits, as of
December 31, 1999 and 1998 . . . . . . . . . . . . . . . . . . . . . . 3
Statements of Changes in Net Assets Available for Plan Benefits, for the
year ended December 31, 1999 . . . . . . . . . . . . . . . . . . . . . 4
Notes to Financial Statements. . . . . . . . . . . . . . . . . . . . . . 5 - 9
SUPPLEMENTAL SCHEDULES:
Form 5500, Item 4(i) on Schedule H - Schedule of Assets Held
for Investment Purposes, as of December 31, 1999 . . . . . . . . . . . 11
ADDITIONAL FUND INFORMATION:
Statements of Net Assets Available for Plan Benefits,
with Fund Information as of December 31, 1999. . . . . . . . . . . . . 13 - 15
Statements of Changes in Net Assets Available for Plan Benefits, with
Fund Information for the year ended December 31, 1999. . . . . . . . . 16 - 18
EXHIBITS:
Consent of Independent Accountants, annexed hereto . . . . . . . . . . . 19
</TABLE>
<PAGE>
------
REPORT OF INDEPENDENT ACCOUNTANTS
To the Participants and Administrative Committee of
Policy Management Systems Corporation 401(k) Retirement Savings Plan
In our opinion, the accompanying statements of net assets available for plan
benefits and the related statement of changes in net assets available for plan
benefits present fairly, in all material respects, the net assets available for
benefits of the Policy Management Systems Corporation 401(k) Retirement Savings
Plan at December 31, 1999 and 1998 and the changes in net assets available for
the year ended December 31, 1999, 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 principles 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 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. Additional fund information, which includes the statement of net assets
available for plan benefits and the statement of changes in net assets available
for plan benefits, are presented for purposes of additional analysis rather than
to present the net assets available for plan benefits and changes in net assets
available for plan benefits of each fund. These supplemental schedules and
additional fund information are the responsibility of the Plan's management. The
supplemental schedules and additional 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 a whole.
PricewaterhouseCoopers LLP
Atlanta, Georgia
June 12, 2000
<PAGE>
<TABLE>
<CAPTION>
POLICY MANAGEMENT SYSTEMS CORPORATION
401(K) RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
AS OF DECEMBER 31, 1999 AND 1998
<S> <C> <C>
1999 1998
------------ ------------
ASSETS
Investments, at current value:
Interest bearing cash accounts $ 804,465 $ 519,938
Short-term investments . . . . 794,868 633,436
Mutual funds . . . . . . . . . 140,855,374 114,637,154
Common stock . . . . . . . . . 31,118,385 35,294,856
------------ ------------
Total Investments. . . . . 173,573,092 151,085,384
------------ ------------
Receivables:
Loans receivable . . . . . . . 4,594,817 3,515,222
Other receivable . . . . . . . 221,002 17,131
------------ ------------
Total Receivables . . . . 4,815,819 3,532,353
------------ ------------
Total Assets . . . . . 178,388,911 154,617,737
------------ ------------
LIABILITIES
Other liabilities. . . . . . 219,639 -
------------ ------------
Total Liabilities . . . 219,639 -
------------ ------------
Net assets available
for plan benefits . $178,169,272 $154,617,737
============ ============
<FN>
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
POLICY MANAGEMENT SYSTEMS CORPORATION
401 (K) RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1999
<S> <C>
1999
-------------
Additions to net assets attributed to:
Investment Income:
Net depreciation in
market value. . . . . . . . . . . . $ (9,108,923)
Dividends and interest. . . . . . . . 9,019,722
-------------
(89,201)
-------------
Cash Contributions:
Employer . . . . . . . . . . . . . . 7,085,792
Employee . . . . . . . . . . . . . . 15,713,990
-------------
22,799,782
-------------
Loan repayments . . . . . . . . . . . . 381,558
Transfers from acquired entities. . . . 6,635,161
-------------
Total Additions. . . . . . . . . . 29,727,300
-------------
Deductions from net assets attributed to:
Distributions . . . . . . . . . . . . 6,092,511
Administrative Fees . . . . . . . . . 83,254
-------------
Total Deductions . . . . . . . . 6,175,765
-------------
Net increases. . . . . . . . . . . . . 23,551,535
-------------
Net assets available for plan benefits
Beginning of year. . . . . . . . . . 154,617,737
-------------
End of year. . . . . . . . . . . . . $178,169,272
=============
<FN>
See accompanying notes.
</TABLE>
<PAGE>
POLICY MANAGEMENT SYSTEMS CORPORATION
401(K) RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. ESTABLISHMENT OF PLAN
The Board of Directors of Policy Management Systems Corporation (the
"Company") established the Policy Management Systems Corporation 401(k)
Retirement Savings Plan (the "Plan") to provide a before-tax and after-tax
savings retirement program for all eligible employees of the Company. The Plan
became effective on April 1, 1990 and is subject to the requirements of the
Employee Retirement Income Security Act of 1974 (ERISA).
2. PLAN DESCRIPTION
GENERAL
The following description of the Plan is provided for general information
purposes only. Participants should refer to the Plan document for a more
complete description of the Plan's provisions.
ELIGIBILITY
All employees of the Company and its participating affiliates, who are U.S.
citizens or U.S. residents, who have attained the age of 18 are eligible to
participate in the Plan. A Participant who chooses not to enroll in the Plan
when they are first eligible may elect to participate at a later date, in
accordance with the terms of the Plan. In 1998, the Plan discontinued the
six-consecutive month period of employment requirement for eligibility
EMPLOYEE CONTRIBUTIONS
Participants may contribute in 1% increments up to 15% of eligible
compensation as either before-tax or after-tax contributions to the Plan, or a
combination of both. The maximum before-tax contribution allowed by the Internal
Revenue Code of 1986, as amended (the "Code"), for 1999 was $10,000.
EMPLOYER MATCHING CONTRIBUTIONS
The Company matches 100% of the first 3% and 50% of the next 3% of the
Participant's before-tax or after-tax contributions, but not both. Employer
matching contributions are invested in the Policy Management Systems Corporation
Common Stock Fund.
INVESTMENT OPTIONS
Each fund is valued at quoted market prices to determine a current fund
value. Investments in securities for which exchange quotations are readily
available are valued at the last sale price, or, if no sale, at the closing bid
price. Debt securities are valued in the same manner or in some other manner,
if, in the opinion of the Board of trustees, such other manner would more
accurately reflect the fair value of such debt securities. Short-term
investments (consisting primarily of money-market funds) are valued either at
amortized cost or original cost plus accrued interest, both of which approximate
market value.
<PAGE>
Through December 31, 1999, the investment options available through Fidelity,
based on descriptions provided by the Fund Managers, were as follows:
Fidelity Retirement Government Money Market: This fund consists of short-term
money market securities in which the U.S. government or its agencies guarantee
timely payment of principal and interest.
MAS Fixed Income Portfolio: This fund is an income-producing bond mutual fund
consisting of all types of bonds including U.S. government or agency securities,
corporate bonds, mortgage securities, and international bonds.
Fidelity Puritan Fund: This fund consists of high-yielding U.S. and foreign
securities and common and preferred stocks, and bonds of any quality or
maturity.
MAS Value Portfolio: This fund consists mostly of stocks of larger companies
that are considered undervalued.
Spartan U.S. Equity Index Fund: This fund invests primarily in S&P 500
companies and in other securities that are based on the value of the index.
Fidelity Magellan Fund: This fund consists primarily of common stocks of
companies with above average growth potential and a correspondingly higher level
of risk.
PIMCO Mid-Cap Growth Fund: This fund consists of common stocks of companies
worth at least $500 million with potential for growth.
Neuberger & Berman Genesis Trust: This fund consists of common stocks of small
companies with market capitalization of up to $1.5 billion at the time of
investment and with solid performance histories and proven management.
Fidelity Diversified International Fund: This fund consists of stocks of
companies located outside the U.S. which are undervalued compared to industry
norms in their countries.
PMSC Stock Fund: This fund consists of the common stock of Policy Management
Systems Corporation as well as short-term investments.
Fidelity Brokerage Link: This fund is a brokerage account which gives the
participant a wide variety of investment options including stocks, bonds,
mortgage securities, certificates of deposit, foreign securities, guaranteed
investment contracts, and other mutual funds.
GDPM Retirement Government Money Market Fund: This fund invests high quality,
short-term money market securities in which the U.S. government or its agencies
guarantee timely payment of principal and interest and fixed income securities
(public bonds, private bonds and commercial mortgages), as well as equity real
estate.
ALLOCATIONS
Participant's accounts are credited with the actual income derived from the
investments in such accounts and with the actual expenses related to such
accounts.
<PAGE>
INVESTMENT ELECTIONS
Each Participant is required to telephone the Plan Administrator to enroll,
choose a deferral rate and designate the allocation of the Participant's
contributions among the Plan's investment funds in multiples of 1%. In addition,
participants may change the investment of contributions and may move their
vested balances among investment funds by internet or telephone at any time.
In addition to the contributions specified above, Participants who receive a
qualified distribution under section 401(a) of the Code, from any other tax
qualified plan, may have all or part of such distribution transferred into the
Plan. Such rollover contributions are subject to tax regulations imposed by the
Code.
VESTING
A Participant is always 100% vested in his or her before-tax contribution
accounts, after-tax contribution accounts and rollover accounts. A Participant
will become fully vested in his employer matching contribution account when the
first of the following occurs: the Participant obtains five years of credited
service; reaches normal retirement age; becomes permanently disabled; or becomes
deceased.
FORFEITURE ALLOCATIONS
All Participant forfeitures are used to reduce future employer matching
contributions to the Plan and pay plan expenses. At December 31, 1999, the Plan
had approximately $233,316 in forfeitures.
BENEFIT PAYMENTS
The Participant's after-tax contributions may be withdrawn at any time by
telephoning the Plan Administrator. In addition, a Participant may withdraw all
or any part of his or her vested employer matching contributions on his or her
after-tax contributions, but only to the extent that such contributions have
been in the Plan for at least two full Plan years after the Plan year in which
such contributions were made.
LOANS
Participants may apply for loans greater than $1,000 from the Plan,
collateralized by their account balances and repaid through payroll deduction
generally subject to the following terms:
1) The total loans of any Participant at any point in time shall not exceed the
lesser of (i) 50% of the Participant's vested Account balance, or (ii) $50,000
adjusted on the volume of loans outstanding to the Participant during the
previous one-year period.
2) Loans may not be made in such a manner as to favor highly compensated
employees, officers or shareholders.
3) No Participant shall be permitted to have more than one loan from the Plan
issued and outstanding at any time.
4) Interest charged on loans is 1% over the prime lending rate.
5) The length and terms of repayment may not exceed 5 years, unless the purpose
of the loan is for the purchase of the Participant's principal residence, in
which case the loan term may be extended to ten years.
6) All amounts repaid are credited to the Participant's account.
<PAGE>
ADMINISTRATIVE EXPENSES
Administrative expenses of the Plan may be paid out of Plan assets if not
paid by the Company. Administrative expenses paid by the Plan for the year ended
December 31, 1999 were $83,254.
SERVICE PROVIDER
From January 1, 1998, through March 31,1998, Aon Consulting, Inc. served as
recordkeeper for the plan and First Union National Bank served as the Trustee.
Effective April 1, 1998, Fidelity Investments Institutional Operations Company,
Inc. became the recordkeeper and Fidelity Management Trust Company serves as the
Trustee for the Plan.
3. SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The accompanying financial statements have been prepared on the accrual basis in
accordance with generally accepted accounting principles except that amounts
relating to the individual participant-directed investment program
(Brokeragelink) have not been disclosed as separate funds. The preparation of
financial statements in conformity with generally accepted accounting principles
may require management to make estimates and assumptions that effect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements, as well as the reported
amounts of additions to and deductions from net assets available for plan
benefits during the reporting period. Actual results could differ from those
estimates. The plan presents in the statement of changes in net assets
available for benefits the net appreciation (depreciation) in the fair value of
its investments which consists of the realized gains or losses and the
unrealized appreciation (depreciation) on those investments.
4. INVESTMENTS
The following presents investments that represent 5 percent or more of the
Plan's net assets:
December 31,
--------------------------
1999 1998
---------- -----------
GDPM Ret Gov Money Mkt $16,521,028 $ -
Fidelity Magellan Mutual 60,878,648 43,258,709
Fidelity Puritan Mutual 29,724,865 28,860,112
PMSC Stock 28,068,060* 35,219,876*
Spartan Equity Index 10,029,815 4,812,180
* Nonparticipant-directed
<PAGE>
5. TAX STATUS
The Internal Revenue Service has determined and informed the Company by
letter dated November 1996, that the Plan is designed in accordance with
Sections 401(k) and 401(a) of the Code. The Plan Administrator believes that the
Plan is written and is currently being operated in compliance with the
applicable requirements of the Code. The Trust is exempt from federal income
taxes under section 501(a) of the Code.
6. TERMINATION OF PLAN
The Company expects and intends to continue the Plan in force indefinitely,
but has reserved the right to amend or terminate the Plan as necessary. If the
Plan were to be terminated, Participants would become fully vested and all
assets of the Plan would be distributed to the individual Participants based
upon the vested balances in their individual accounts at the date of
termination.
7. RELATED PARTY TRANSACTIONS
The Plan purchases, on behalf of Participants, shares of the Company's
common stock in accordance with individual Participant's investment elections.
During the Plan year ended December 31, 1999, the Plan purchased 471,400 shares
at an aggregate cost of $12,931,718 and sold 58,263 shares for aggregate
proceeds of $1,726,728 and realized gains of $141,250. The Plan also had
1,098,017 and 684,880 shares of the Company's common stock with a fair value of
$28,068,060 and $34,586,440 at December 31, 1999 and 1998, respectively.
The Plan's investments include shares of mutual funds managed by Fidelity
Investments. Fidelity Investments Institutional Operations Company, Inc. is the
recordkeeper while Fidelity Management Trust Company is the trustee as defined
by the Plan and therefore, these transactions quality as party-in-interest.
<PAGE>
SUPPLEMENTAL SCHEDULES
<PAGE>
<TABLE>
<CAPTION>
POLICY MANAGEMENT SYSTEMS CORPORATION
401(K) RETIREMENT SAVINGS PLAN
FORM 5500, ITEM 4(I) ON SCHEDULE H -SCHEDULE OF ASSETS HELD
FOR INVESTMENT PURPOSES
DECEMBER 31, 1999
<S> <C> <C> <C> <C>
Current
Fund Name. . . . . . . . . . . . . . . Shares Cost Value
----------------------------------------- ------- ----------- -----------
Brokeragelink (1) . . . . . . . . . . . . N/A $ N/A $ 4,073,358
MAS Fixed Income Portfolio 423,630 4,994,978 4,613,330
MAS Value Portfolio 172,766 2,805,994 2,092,194
Neuberger & Berman Genesis Trust 180,754 3,960,836 3,803,061
PIMCO Mid-Cap Growth Fund 300,762 7,014,192 7,780,701
PMSC Stock Fund* 4,462,593 29,823,941 28,068,060
PMSC Stock Fund cash*(3). . . . . . . . . N/A 794,868 794,868
Fidelity Puritan Fund* 1,562,000 27,809,814 29,724,865
Fidelity Magellan Fund* 445,573 43,418,383 60,878,648
Fidelity Diversified International Fund* 210,600 4,052,508 5,395,579
Fidelity Retirement
Government Money Market* 16,153 16,153 16,153
GDPM Ret Gov Money Market* 16,521,028 16,521,028 16,521,028
Spartan US Equity Index Fund* 192,548 8,457,559 10,029,815
Loans Outstanding (2) . . . . . . . . . . N/A N/A 4,594,817
<FN>
* Indicates party-in-interest to the Plan.
(1) Brokeragelink is a participant directed fund; shares and cost are not available
(2) Share and cost are not applicable to Loans Outstanding, interest rates range from
8.75% to 10%
(3) Fidelity Institutional Cash Portfolio
</TABLE>
<PAGE>
ADDITIONAL FUND INFORMATION
<PAGE>
<TABLE>
<CAPTION>
POLICY MANAGEMENT SYSTEMS CORPORATION
401(K) RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
AS OF DECEMBER 31, 1999
<S> <C> <C> <C> <C> <C>
Fidelity GDPM Fidelity Fidelity
Retirement Ret Gov Puritan Magellan
Loan Government Money Mkt Mutual Mutual
----------- ----------- ----------- -------------------------- -----------
ASSETS
Investments, at current value:
Interest bearing cash accounts $ - $ - $ - $ - $ -
Short-term investments . . . . - - - - -
Mutual funds . . . . . . . . . - 16,153 16,521,028 29,724,865 60,878,648
Common stock . . . . . . . . . - - - - -
----------- ----------- ----------- -------------------------- -----------
Total Investments . . . . - 16,153 16,521,028 29,724,865 60,878,648
----------- ----------- ----------- -------------------------- -----------
Receivables:
Loans receivable . . . . . . . 4,594,817 - - - -
Other receivable . . . . . . . - - - - -
----------- ----------- ----------- -------------------------- -----------
Total Receivables . . . . 4,594,817 - - - -
----------- ----------- ----------- -------------------------- -----------
Total Assets. 4,594,817 16,153 16,521,028 29,724,865 60,878,648
----------- ----------- ----------- -------------------------- -----------
LIABILITIES
Other liabilities. . . . . . - - - - -
----------- ----------- ----------- -------------------------- -----------
Total Liabilities . . . - - - - -
----------- ----------- ----------- -------------------------- -----------
Net assets available
for plan benefits . $ 4,594,817 $ 16,153 $16,521,028 29,724,865 $60,878,648
=========== =========== =========== ==========================
<FN>
Continued on next page
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
POLICY MANAGEMENT SYSTEMS CORPORATION
401(K) RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
AS OF DECEMBER 31, 1999
(CONTINUED)
<S> <C> <C> <C> <C> <C>
MAS PIMCO Fidelity
Fixed PMSC * Brokerage- Mid-Cap Diversified
Income Stock link Growth International
---------- ----------- ----------- -------------------------
ASSETS
Investments, at current value:
Interest bearing cash accounts - - 804,465 - -
Short-term investments . . . . $ - $ 794,868 $ - $ - $ -
Mutual funds . . . . . . . . . 4,613,330 - - 7,780,701 5,395,579
Common stock . . . . . . . . . - 28,068,060 3,050,325 - -
---------- ----------- ----------- ------------------------- ------------
Total Investments . . . . 4,613,330 28,862,928 3,854,790 7,780,701 5,395,579
---------- ----------- ----------- ------------------------- ------------
Receivables:
Loans receivable . . . . . . . - - - - -
Other receivable . . . . . . . - 2,434 218,568 - -
---------- ----------- ----------- ------------------------- ------------
Total Receivables . . . . - 2,434 218,568 - -
---------- ----------- ----------- ------------------------- ------------
Total Assets. . . . . 4,613,330 28,865,362 4,073,358 7,780,701 5,395,579
---------- ----------- ----------- ------------------------- ------------
LIABILITIES
Other liabilities. . . . . . - 219,639 - - -
---------- ----------- ----------- ------------------------- ------------
Total Liabilities . . . - 219,639 - - -
---------- ----------- ----------- ------------------------- ------------
Net assets available
for plan benefits . $4,613,330 $28,645,723 $ 4,073,358 $ 7,780,701 $ 5,395,579
========== =========== =========== ========================= ============
<FN>
* Non-participant directed
Continued on next page
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
POLICY MANAGEMENT SYSTEMS CORPORATION
401(K) RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
AS OF DECEMBER 31, 1999
(CONTINUED)
<S> <C> <C> <C> <C>
MAS NB Spartan
Value Genesis Equity
Advisor Trust Index Total
---------- ---------- ----------- ------------
ASSETS
Investments, at current value:
Interest bearing cash accounts - - - 804,465
Short-term investments . . . . $ - $ - $ - $ 794,868
Mutual funds . . . . . . . . . 2,092,194 3,803,061 10,029,815 140,855,374
Common stock . . . . . . . . . - - - 31,118,385
---------- ---------- ----------- ------------
Total Investments. . . . . 2,092,194 3,803,061 10,029,815 173,573,092
---------- ---------- ----------- ------------
Receivables:
Loans receivable . . . . . . . - - - 4,594,817
Other receivable . . . . . . . - - - 221,002
---------- ---------- ----------- ------------
Total Receivables . . . . - - - 4,815,819
---------- ---------- ----------- ------------
Total Assets . . . . . 2,092,194 3,803,061 10,029,815 178,388,911
---------- ---------- ----------- ------------
LIABILITIES
Other liabilities. . . . . . - - - 219,639
---------- ---------- ----------- ------------
Total Liabilities . . . - - - 219,639
---------- ---------- ----------- ------------
Net assets available
for plan benefits . $2,092,194 $3,803,061 $10,029,815 $178,169,272
========== ========== =========== ============
<FN>
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
POLICY MANAGEMENT SYSTEMS CORPORATION
401 (K) RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1999
<S> <C> <C> <C> <C> <C>
Fidelity GDPM Fidelity Fidelity
Retirement Ret Gov Puritan Magellan
Loan Government MoneyMkt Mutual Mutual
------------ ----------------------- ----------- ------------ ------------
Additions to net assets attributed to:
Investment Income:
Net appreciation (depreciation) in
market value . . . . . . . . . . . . $ - $ - $ - $(1,459,124) $ 6,452,641
Dividends and interest . . . . . . . . - 465,685 353,394 2,316,747 4,862,773
------------ ----------------------- ----------- ------------ ------------
- 465,685 353,394 857,623 11,315,414
------------ ----------------------- ----------- ------------ ------------
Cash Contributions:
Employer. . . . . . . . . . . . . . . - 375 - 183 942
Employee. . . . . . . . . . . . . . . - (28,783) 488,819 3,251,234 5,520,729
------------ ----------------------- ----------- ------------ ------------
- (28,408) 488,819 3,251,417 5,521,671
------------ ----------------------- ----------- ------------ ------------
Interfund transfers. . . . . . . . . . . - (17,858,331) 15,561,267 (3,149,894) 1,653,839
Loan repayments. . . . . . . . . . . . . (1,779,015) 113,325 134,085 387,728 567,368
Transfers from acquired entities . . . . 139,259 81,521 661,962 795,961 1,564,788
------------ ----------------------- ----------- ------------ ------------
Total Additions (Deductions). . . . (1,639,756) (17,226,208) 17,199,527 2,142,835 20,623,080
------------ ----------------------- ----------- ------------ ------------
Deductions from net assets attributed to:
Distributions. . . . . . . . . . . . . 67,364 1,191,671 521,616 736,083 2,175,246
Forfeitures. . . . . . . . . . . . . . - 2,693 1,173 569 1,994
Loan disbursements . . . . . . . . . . (2,786,716) 243,781 131,913 521,220 804,293
Administrative Fees. . . . . . . . . . - 5,175 23,797 4,294 1,450
------------ ----------------------- ----------- ------------ ------------
Total Deductions (Additions). . . (2,719,352) 1,443,320 678,499 1,262,166 2,982,983
------------ ----------------------- ----------- ------------ ------------
Net increases (decreases) . . . . . . . 1,079,596 (18,669,528) 16,521,028 880,669 17,640,097
------------ ----------------------- ----------- ------------ ------------
Transfers out. . . . . . . . . . . . . . . - 38,217 - (15,916) (20,158)
Net assets available for plan benefits
Beginning of year . . . . . . . . . . 3,515,222 18,647,464 - 28,860,112 43,258,709
------------ ----------------------- ----------- ------------ ------------
End of year . . . . . . . . . . . . . $ 4,594,817 $ 16,153 $16,521,028 $29,724,865 $60,878,648
============ ======================= =========== ============ ============
<FN>
Continued on next page
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
POLICY MANAGEMENT SYSTEMS CORPORATION
401 (K) RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1999
(CONTINUED)
<S> <C> <C> <C> <C> <C>
MAS PIMCO Fidelity
Fixed PMSC Brokerage- Mid-Cap Diversified
Income Stock link Growth International
----------- ------------- ----------- ------------ --------------
Additions to net assets attributed to:
Investment Income:
Net appreciation (depreciation) in
market value . . . . . . . . . . . . $ (303,602) $(17,697,768) $ 452,847 $ 816,367 $ 1,479,500
Dividends and interest . . . . . . . . 267,261 38,112 56,099 19,063 190,601
----------- ------------- ----------- ------------ --------------
(36,341) (17,659,656) 508,946 835,430 1,670,101
----------- ------------- ----------- ------------ --------------
Cash Contributions:
Employer. . . . . . . . . . . . . . . 69 7,083,498 - 97 111
Employee. . . . . . . . . . . . . . . 605,983 1,102,047 21,700 1,088,304 692,873
----------- ------------- ----------- ------------ --------------
606,052 8,185,545 21,700 1,088,401 692,984
----------- ------------- ----------- ------------ --------------
Interfund transfers. . . . . . . . . . . (50,250) 3,402,683 2,291,878 (1,700,759) 153,180
Loan repayments. . . . . . . . . . . . . 61,050 518,925 5,349 113,604 58,974
Transfers from acquired entities. . . . . 375,813 (3,370) - 1,212,826 438,429
----------- ------------- ----------- ------------ --------------
Total Additions (Deductions). . . . 956,324 (5,555,873) 2,827,873 1,549,502 3,013,668
----------- ------------- ----------- ------------ --------------
Deductions from net assets attributed to:
Distributions. . . . . . . . . . . . . 77,667 459,742 - 306,056 114,434
Forfeitures. . . . . . . . . . . . . . 126 (11,111) - 1,631 631
Loan disbursements . . . . . . . . . . 93,890 521,573 - 146,571 72,751
Administrative Fees. . . . . . . . . . 1,531 45,933 - 61 58
----------- ------------- ----------- ------------ --------------
Total Deductions. . . . . . . . . 173,214 1,016,137 - 454,319 187,874
----------- ------------- ----------- ------------ --------------
Net increases (decreases) . . . . . . . 783,110 (6,572,010) 2,827,873 1,095,183 2,825,794
----------- ------------- ----------- ------------ --------------
Transfers out. . . . . . . . . . . . . . . - (2,143) - - -
Net assets available for plan benefits
Beginning of year . . . . . . . . . . 3,830,220 35,219,876 1,245,485 6,685,518 2,569,785
----------- ------------- ----------- ------------ --------------
End of year . . . . . . . . . . . . . $4,613,330 $ 28,645,723 $ 4,073,358 $ 7,780,701 $ 5,395,579
=========== ============= =========== ============ ==============
<FN>
Continued on next page
See accompanying notes.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
POLICY MANAGEMENT SYSTEMS CORPORATION
401 (K) RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1999
(CONTINUED)
<S> <C> <C> <C> <C>
MAS NB Spartan
Value Genesis Equity
Advisor Trust Index Total
----------- ----------- ----------- -------------
Additions to net assets attributed to:
Investment Income:
Net appreciation (depreciation) in
market value . . . . . . . . . . . . $ (320,795) $ 119,027 $ 1,351,984 $ (9,108,923)
Dividends and interest . . . . . . . . 288,229 19,764 141,994 9,019,722
----------- ----------- ----------- -------------
(32,566) 138,791 1,493,978 (89,201)
----------- ----------- ----------- -------------
Cash Contributions:
Employer. . . . . . . . . . . . . . . 186 35 296 7,085,792
Employee. . . . . . . . . . . . . . . 498,214 752,690 1,720,180 15,713,990
----------- ----------- ----------- -------------
498,400 752,725 1,720,476 22,799,782
----------- ----------- ----------- -------------
Interfund transfers. . . . . . . . . . . (631,555) (717,812) 1,045,754 -
Loan repayments. . . . . . . . . . . . . 35,870 66,422 97,873 381,558
Transfers from acquired entities . . . . 104,629 8,997 1,254,346 6,635,161
----------- ----------- ----------- -------------
Total Additions (Deductions). . . . (25,222) 249,123 5,612,427 29,727,300
----------- ----------- ----------- -------------
Deductions from net assets attributed to:
Distributions. . . . . . . . . . . . . 50,028 116,792 275,812 6,092,511
Forfeitures. . . . . . . . . . . . . . - 669 1,625 -
Loan disbursements . . . . . . . . . . 36,099 98,074 116,550 -
Administrative Fees. . . . . . . . . . 15 135 805 83,254
----------- ----------- ----------- -------------
Total Deductions. . . . . . . . . 86,142 215,670 394,792 6,175,765
----------- ----------- ----------- -------------
Net increases (decreases) . . . . . . . (111,364) 33,453 5,217,635 23,551,535
----------- ----------- ----------- -------------
Transfers out. . . . . . . . . . . . . . . - - - -
Net assets available for plan benefits
Beginning of year . . . . . . . . . . 2,203,558 3,769,608 4,812,180 154,617,737
----------- ----------- ----------- -------------
End of year . . . . . . . . . . . . . $2,092,194 $3,803,061 $10,029,815 $178,169,272
=========== =========== =========== =============
<FN>
See accompanying notes.
</TABLE>
