CERNER CORPORATION
FOUNDATIONS RETIREMENT PLAN
Financial Statements and Schedules
December 31, 1995 and 1994
(With Independent Auditors' Report Thereon)
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors
Cerner Corporation:
We have audited the accompanying statements of net assets
available for participants of the Cerner Corporation
Foundations Retirement Plan as of December 31, 1995 and 1994
and the related statements of changes in net assets available
for participants for the years then ended. 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 participants of the Cerner Corporation
Foundations Retirement Plan as of December 31, 1995 and 1994
and the changes in net assets available for participants for
the years then ended, in conformity with generally accepted
accounting principles.
Our audits were made for the purpose of forming an opinion on
the basic financial statements taken as a whole. The
supplementary schedules of assets held for investment purposes
and reportable transactions 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. The fund information in the
statements of net assets available for participants and the
statements of changes in net assets available for participants
is presented for purposes of additional analysis rather than
to present the net assets available for participants and
changes in net assets available for participants 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 a whole.
June 7, 1996
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<TABLE>
CERNER CORPORATION
FOUNDATIONS RETIREMENT PLAN
Statement of Net Assets Available for Participants
December 31, 1995
<CAPTION>
Fund A Fund B Fund C Fund D Fund E Fund F Loans Total
______ ______ ______ ______ ______ ______ _____ _____
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investments at fair value:
Common stock of Cerner
Corporation, 922,253
shares (cost $7,207,192) $18,906,187 - - - - - - 18,906,187
Twentieth Century Ultra Fund,
104,064.79 shares
(cost $2,314,951) - 2,717,132 - - - - - 2,717,132
Twentieth Century Growth Fund,
84,894.68 shares
(cost $1,821,710) - - 1,646,108 - - - - 1,646,108
Twentieth Century Select Fund,
27,377.38 shares
(cost $1,033,449) - - - 975,182 - - - 975,182
Twentieth Century Balanced Fund,
43,875.42 shares
(cost $706,165) - - - - 745,443 - - 745,443
Chase Manhattan Capital
Preservation Trust, 634,997
shares at cost which
approximates fair value - - - - - 634,997 - 634,997
Loans to participants, at cost
which approximates fair value - - - - - - 207,684 207,684
__________ _________ _________ _______ _______ _______ _______ __________
Total investments 18,906,187 2,717,132 1,646,108 975,182 745,443 634,997 207,684 25,832,733
Cash 8,363 - - - - - - 8,363
Contributions receivable:
Associates 94,400 46,151 31,467 16,782 10,489 10,489 1,665 211,443
Employer 25,684 - - - - - - 25,684
__________ _________ _________ _______ _______ _______ _______ __________
Net assets available
for participants $19,034,634 2,763,283 1,677,575 991,964 755,932 645,486 209,349 26,078,223
=========== ========= ========= ======= ======= ======= ======= ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
CERNER CORPORATION
FOUNDATIONS RETIREMENT PLAN
Statement of Net Assets Available for Participants
December 31, 1994
<CAPTION>
Fund A Fund B Fund C Fund D Fund E Fund F Loans Total
______ ______ ______ ______ ______ ______ _____ _____
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investments at fair value:
Common stock of Cerner
Corporation,465,328 shares
(cost $5,386,712) $20,537,010 - - - - - - 20,537,010
Twentieth Century Ultra Fund,
61,004.17 shares
(cost $1,225,295) - 1,217,033 - - - - - 1,217,033
Twentieth Century Growth Fund,
51,003.23 shares
(cost $1,122,353) - - 955,800 - - - - 955,800
Twentieth Century Select Fund,
17,791.46 shares
(cost $683,551) - - - 588,897 - - - 588,897
Twentieth Century Balanced Fund,
29,646.96 shares
(cost $463,210) - - - - 452,709 - - 452,709
Chase Manhattan Capital Preservation
Trust, 761,660 shares at cost
which approximates fair value - - - - - 791,660 - 791,660
Loans to participants, at cost
which approximates fair value - - - - - - 112,486 112,486
__________ _________ _______ _______ _______ _______ _______ __________
Total investments 20,537,010 1,217,033 955,800 588,897 452,709 791,660 122,486 24,655,595
Cash 44,138 - - - - - - 44,138
Contributions receivable:
Associates 50,416 24,062 17,187 10,312 6,875 5,729 930 115,511
Employer 22,557 - - - - - - 22,557
__________ _________ _______ _______ _______ _______ _______ __________
Net assets available
for participants $20,654,121 1,241,095 972,987 599,209 459,584 797,389 113,416 24,837,801
========== ========= ======= ======= ======= ======= ======= ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
CERNER CORPORATION
FOUNDATIONS RETIREMENT PLAN
Statement of Changes in Net Assets Available for Participants
Year ended December 31, 1995
<CAPTION>
Fund A Fund B Fund C Fund D Fund E Fund F Loans Total
______ ______ ______ ______ ______ ______ _____ _____
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Net appreciation (depreciation)
in fair value of investments $(1,486,387) 459,796 (3,715) 32,477 56,492 - - (941,337)
Interest and dividends 2,379 128,649 227,678 117,977 58,568 33,239 11,831 580,321
Interfund transfers (254,356) 298,024 28,349 (6,394) 27,802 (80,915) (12,510) -
Employer contributions (note 2) 450,736 - - - - - - 450,736
Associates' contributions (note 2) 1,636,096 881,204 625,805 328,042 254,376 234,838 1,665 3,962,026
Loan repayments 11,577 12,461 2,633 1,243 464 3,047 (31,425) -
_________ _________ _______ _______ _______ _______ _______ _________
Total additions (deductions) 360,045 1,780,134 880,750 473,345 397,702 190,209 (30,439) 4,051,746
_________ _________ _______ _______ _______ _______ _______ _________
Deductions from net assets attributed to:
Distributions to associates (1,940,405) (216,130) (166,164) (71,906) (72,959)(338,552) (4,957) (2,811,073)
Loans to participants (39,128) (41,816) (9,998) (8,684) (28,395) (3,560) 131,581 -
Participant loan expenses - - - - - - (250) (250)
___________ _________ _________ _______ ________ ________ _______ _________
Total (deductions) additions (1,979,533) (257,946) (176,162) (80,590)(101,354)(342,112) 126,374 (2,811,323)
___________ _________ _________ _______ ________ ________ ________ __________
Net increase (decrease) (1,619,488) 1,522,188 704,588 392,755 296,348 (151,903) 95,935 1,240,423
Net assets available for participants:
Beginning of year 20,654,121 1,241,095 972,987 599,209 459,584 797,389 113,416 24,837,801
__________ _________ _________ _______ _______ _______ _______ __________
End of year $19,034,633 2,763,283 1,677,575 991,964 755,932 645,486 209,351 26,078,224
========== ========= ========= ======= ======= ======= ======= ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
CERNER CORPORATION
FOUNDATIONS RETIREMENT PLAN
Statement of Changes in Net Assets Available for Participants
Year ended December 31, 1994
<CAPTION>
Fund A Fund B Fund C Fund D Fund E Fund F Loans Total
______ ______ ______ ______ ______ ______ _____ _____
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Net appreciation (depreciation)
in fair value of investments $ 707,133 (48,807) (151,412) (93,868) (17,253) - - 395,793
Interest and dividends 15,671 37,867 140,317 50,927 17,950 19,236 6,968 288,936
Interfund transfers (39,571) (80,094) (34,717) (44,318) (10,171) 214,024 (5,153) -
Employer contributions (note 2) 370,448 - - - - - - 370,448
Associates' contributions
(note 2) 1,377,335 752,781 489,147 328,781 220,518 554,976 - 3,723,538
Loan repayments 5,672 1,242 1,196 420 197 294 (9,021) -
_________ _______ _______ _______ _______ _______ ______ _________
Total additions (deductions) 2,436,688 662,989 444,531 241,942 211,241 788,530 (7,206) 4,778,715
_________ _______ _______ _______ _______ _______ ______ _________
Deductions from net assets attributed to:
Distributions to associates (735,128) (61,970) (61,249) (84,024) (2,551) (289,289) (19,705) (1,253,916)
Loans to participants (25,240) (12,191) (4,963) (2,169) (1,730) (737) 47,030 -
Participant loan expenses - - - - - - (886) (886)
_________ ________ ________ ______ _______ _______ ______ _________
Total (deductions) additions (760,368) (74,161) (66,212) (86,193) (4,281) (290,026) 26,439 (1,254,802)
_________ ________ ________ _______ _______ _________ ______ _________
Net increase 1,676,320 588,828 378,319 155,749 206,960 498,504 19,233 3,523,913
Net assets available for participants:
Beginning of year 18,977,801 652,267 594,668 443,460 252,624 298,885 94,183 21,313,888
__________ _________ _______ _______ _______ _______ _______ __________
End of year $ 20,654,121 1,241,095 972,987 599,209 459,584 797,389 113,416 24,837,801
========== ========= ======= ======= ======= ======= ======= ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
CERNER CORPORATION
FOUNDATIONS RETIREMENT PLAN
Notes to Financial Statements
December 31, 1995 and 1994
(1) Summary of Significant Accounting Policies
General
The following brief description of the Cerner Corporation
Foundations Retirement Plan (the Plan) is provided for
general information purposes only. Participants should
refer to the Plan Agreement for more complete
information.
The Plan was adopted by the Board of Directors of Cerner
Corporation (the Company or Employer) effective
November 1, 1987. The Plan is administered by a third-
party administrator. All full-time associates of the
Company are eligible for participation in the Plan after
attaining age eighteen.
Basis of Presentation
The accompanying financial statements have been prepared on
the accrual basis in conformity with generally accepted
accounting principles and present the Plan's net assets
available for participants and changes in those net
assets.
Expenses
All costs and expenses incurred in administering the Plan
are paid by the Company. Expenses related to issuance
of loans to participants are charged to the participant
obtaining the loan.
Investments
The Plan's investments and earnings thereon are held in a
bank trust account. The fair values of investments are
based principally on quotations from national securities
exchanges.
Loans to Participants
At the discretion of the Company, loans may be made to
participants in an amount up to 50% of the participant's
self-directed funds balance. The loan period may not
exceed ten years and the interest rate is prime plus 1%.
Use of Estimates
The Plan utilizes a number of estimates and assumptions
relating to the reporting of assets and liabilities and
the disclosure of contingent assets and liabilities to
prepare these financial statements in conformity with
generally accepted accounting principles. Actual
results could differ from those estimates.
(Continued)
<PAGE>
CERNER CORPORATION
FOUNDATIONS RETIREMENT PLAN
Notes to Financial Statements
(2) Contributions
Participating associates may elect to make pretax
contributions from 1% to 15% of their compensation to
the Plan, subject to annual limits imposed by the
Internal Revenue Service. Participants may direct
contributions into six different investment funds.
These funds include Fund A (limited to investments in
the common stock of the Company), Fund B (Twentieth
Century Ultra Investors), Fund C (Twentieth Century
Growth Investors), Fund D (Twentieth Century Select
Investors), Fund E (Twentieth Century Balanced
Investors) and Fund F (Chase Manhattan Capital
Preservation Trust which primarily invests in short-term
investments and guaranteed insurance contracts). The
Company will make matching contributions in an amount
equal to 20% of the participant's annual contribution
not to exceed the lesser of 2% of the participant's
compensation or $600 per participant. All Company
contributions are directed to Fund A.
(3) Distributions
Upon normal retirement, retirement for permanent disability
or death, a participant is entitled to the full value of
the assets attributable to his or her contributions and
Company contributions made on his or her behalf. Upon
termination for any other reason, a participant is
entitled to 100% of his or her contributions and the
vested portion of Company contributions. Company
contributions vest 20% after three years of service and
20% for each additional year of service until a
participant is 100% vested upon completing seven years
of service. Forfeitures of nonvested contributions are
allocated to all Plan participants as of the Plan year-
end on a pro-rata basis according to individual
participant annual earnings.
Participants receive distributions from Fund A in shares of
the Company's common stock except that cash is
distributed for fractional shares. Participants may
also elect to receive cash for distributions with a
value less than $1,000. During the years ended December
31, 1995 and 1994, 42,192 shares and 17,109 shares of
the Company's common stock, respectively, were
distributed to withdrawing participants. Participants
receive distributions from all other funds in cash.
(4) Tax Status
The Plan received a favorable determination letter, dated
August 21, 1994, from the Internal Revenue Service
confirming the tax-exempt status of the Plan under
Section 401(a) of the Internal Revenue Code.
The Company is not aware of any activity or transactions
that may adversely affect the qualified status of the
Plan.
(Continued)
<PAGE>
CERNER CORPORATION
FOUNDATIONS RETIREMENT PLAN
Notes to Financial Statements
(5) Plan Participants
<TABLE>
The following summarizes the number of associate participants
by fund as of December 31, 1995:
<CAPTION>
<S> <C>
Cerner stock account 1,339
Twentieth Century Mutual Funds:
Ultra Investors 724
Growth Investors 587
Select Investors 390
Balanced Investors 258
Chase Manhattan Capital Preservation Trust 217
</TABLE>
<PAGE>
<TABLE>
Schedule 1
CERNER CORPORATION
FOUNDATIONS RETIREMENT PLAN
Item 27(a) - Schedule of Assets Held for Investment Purposes
December 31, 1995
<CAPTION>
Fair
Asset Description Cost value
_____ ___________ ____ _____
<S> <C> <C> <C>
Cerner Corporation 922,253 shares of common stock $ 7,207,192 18,906,187
Twentieth Century Ultra Investors Mutual Fund, 104,064.79 shares 2,314,951 2,717,132
Twentieth Century Growth Investors Mutual Fund, 84,894.68 shares 1,821,710 1,646,108
Twentieth Century Select Investors Mutual Fund, 27,377.38 shares 1,033,449 975,182
Twentieth Century Balanced Investors Mutual Fund, 43,875.42 shares 706,165 745,443
Chase Manhattan Capital
Preservation Trust 634,997 units of participation in a pooled fund 634,997 634,997
Loans to participants Loans to participants (bearing interest
from 7% to 10%) 207,684 207,684
__________ __________
$13,926,148 25,832,733
=========== ==========
</TABLE>
See accompanying independent auditors' report.
<PAGE>
<TABLE>
Schedule 2
CERNER CORPORATION
FOUNDATIONS RETIREMENT PLAN
Item 27(d) - Schedule of Reportable Transaction
Year ended December 31, 1995
<CAPTION>
Fair Net
Number of Purchase Selling Cost of value of gain
transactions price price asset asset (loss)
____________ _____ _____ _____ ______ ______
<S> <C> <C> <C> <C> <C> <C>
Cerner Corporation
common stock
(61,283 shares) Various $ 2,792,628 - 2,792,628 2,792,628 -
Ultra 71 1,300,376 - 1,300,376 1,300,376 -
</TABLE>
In addition, the Plan distributed 42,192 shares of Cerner Corporation common
stock with a cost of $383,748 to withdrawing participants and sold 14,605
shares of Cerner Corporation common stock with a cost of $588,401 during the
year ended December 31, 1995.
Transactions involving Cerner Corporation common stock are party-in-interest
transactions.
NOTES:
A reportable transaction is defined by the Department of Labor as:
o A single transaction in excess of 5% of the fair value of Plan assets.
o A series of transactions with or in conjunction with the same person,
involving property other than securities, which amounts in the aggregate
to more than 5% of the fair value of the Plan assets.
o A series of transactions with respect to securities of the same issue
which amounts in the aggregate to more than 5% of the fair value of the
total Plan assets.
o Any transaction with or in conjunction with a person if a prior or
subsequent single transaction has occurred with respect to securities
with or in conjunction with the same person in an amount in excess of 5%
of the fair value of Plan assets.
A reportable transaction is identified by comparing the fair value of the
transaction at the transaction date with the fair value of the Plan assets at
the beginning of the year ended December 31, 1995.
See accompanying independent auditors' report.
<PAGE>
