UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year end December 31, 1999
------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from ________ to ________
Commission file number 0-15386
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
Cerner Corporation Foundations Retirement Plan
2800 Rockcreek Parkway
Kansas City, MO 64117
B. Name of issuer of the securities held pursuant to the plan and
the address of its principal executive office:
<PAGE>
CERNER CORPORATION FOUNDATIONS
RETIREMENT PLAN
Financial Statements and Schedules
December 31, 1998 and 1997
(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, 1998 and 1997
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, 1998 and 1997
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 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 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.
KPMG, LLP
June 15, 1999
1
<PAGE>
<TABLE>
CERNER CORPORATION
FOUNDATIONS RETIREMENT PLAN
Statement of Net Assets Available for Participants
December 31, 1998
<CAPTION>
_________________________________________________________________________________________________________________________
Fund A Fund B Fund C Fund D Fund E Fund F Fund G
_________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C>
Investments at fair value:
Common stock of Cerner Corporation,
1,276,229 shares (cost $16,241,387) $ 34,139,126 - - - - - -
Twentieth Century Ultra Fund,
321,455 shares (cost $9,141,810) - 10,739,820 - - - - -
Twentieth Century Growth Fund,
261,509 shares (cost $6,424,060) - - 7,102,584 - - - -
Twentieth Century Select Fund,
91,878 shares (cost $4,013,307) - - - 4,354,084 - - -
American Century Balanced Fund,
116,479 shares (cost $2,101,482) - - - - 2,151,364 - -
Benham Preservation Trust,
1,556,636 shares (cost $1,556,636) - - - - - 1,556,636 -
American Century Value Fund,
46,347 shares (cost $311,147) - - - - - - 280,397
__________________________________________________________________________________________________________________________
Total investments 34,139,126 10,739,820 7,102,584 4,354,084 2,151,364 1,556,636 280,397
Cash 2,662 - - - - - -
Contributions receivable:
Associates 112,205 96,785 69,083 42,096 22,787 9,627 8,784
Employer 73,910 - - - - - -
__________________________________________________________________________________________________________________________
Net assets available for participants $ 34,327,903 10,836,605 7,171,667 4,396,180 2,174,151 1,566,263 289,181
=========== ========== ========= ========= ========= ========= =======
</TABLE>
<TABLE>
__________________________________________________________________________________________
Fund H Fund I Loans Total
________________________________________________________________________________________
<S> <C> <C> <C> <C>
Investments at fair value:
Common stock of Cerner Corporation,
1,276,229 shares (cost $16,241,387) - - - 34,139,126
Twentieth Century Ultra Fund,
321,455 shares (cost $9,141,810) - - - 10,739,820
Twentieth Century Growth Fund,
261,509 shares (cost $6,424,060) - - - 7,102,584
Twentieth Century Select Fund,
91,878 shares (cost $4,013,307) - - - 4,354,084
American Century Balanced Fund,
116,479 shares (cost $2,101,482) - - - 2,151,364
Benham Preservation Trust,
1,556,636 shares (cost $1,556,636) - - - 1,556,636
American Century Value Fund,
46,347 shares (cost $311,147) - - - 280,397
Twentieth Century International Growth Fund,
18,439 shares (cost $174,860) 176,646 - - 176,646
Charles B. Schwab Personal Choice Account,
271,677 shares (cost $271,677) - 271,677 - 271,677
Loans to participants, at cost - - 429,720 429,720
________________________________________________________________________________________
Total investments 176,646 271,677 429,720 61,202,054
Cash - - - 2,662
Contributions receivable:
Associates 8,180 - - 369,547
Employer - - - 73,910
________________________________________________________________________________________
Net assets available for participants $ 184,826 271,677 429,720 61,648,173
======== ======= ======= ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE> 2
<TABLE>
CERNER CORPORATION
FOUNDATIONS RETIREMENT PLAN
Statements of Net Assets Available for Participants
December 31, 1997
<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,
1,183,773 shares (cost $12,722,524) $ 25,007,205 - - - - - - 25,007,205
Twentieth Century Ultra Fund,
234,686 shares (cost $6,294,325) - 6,406,922 - - - - - 6,406,922
Twentieth Century Growth Fund,
162,194 shares (cost $3,701,215) - - 3,894,288 - - - - 3,894,288
Twentieth Century Select Fund,
57,859 shares (cost $2,365,005) - - - 2,464,266 - - - 2,464,266
American Century Balanced Fund,
83,541 shares (cost $1,449,721) - - - - 1,515,435 - - 1,515,435
Benham Capital Preservation Trust,
1,055,090 shares (cost $1,055,090) - - - - - 1,055,090 - 1,055,090
Loans to participants, at cost - - - - - - 325,261 325,261
_________________________________________________________________________________________________________________________________
Total investments 25,007,205 6,406,922 3,894,288 2,464,226 1,515,435 1,055,090 325,261 40,668,427
Cash 96,045 - - - - - - 96,045
Contributions receivable:
Associates 77,206 58,261 35,421 23,223 11,580 7,174 - 212,865
Employer 42,573 - - - - - - 42,573
_________________________________________________________________________________________________________________________________
Net assets available for participants $ 25,223,029 6,465,183 3,929,709 2,487,449 1,527,015 1,062,264 325,261 41,019,910
========== ========= ========= ========= ========= ========= ======= ==========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
CERNER CORPORATION
FOUNDATIONS RETIREMENT PLAN
Statements of Changes in Net Assets Available for Participants
Year ended December 31, 1998
<CAPTION>
_________________________________________________________________________________________________________________________
Fund A Fund B Fund C Fund D Fund E Fund F Fund G
_________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Net appreciation (depreciation) in
fair value of investments $ 6,977,299 1,601,533 546,228 304,801 15,638 - (30,816)
Interest and dividends 2,458 907,512 1,155,797 728,861 257,078 78,549 43,831
Interfund transfers (88,582) (54,141) 51,432 50,326 (24,598) (321,339) 103,264
Employer contributions (note 2) 1,026,321 - - - - - -
Associates' contributions (note 2) 3,209,961 2,719,019 1,796,002 1,124,564 628,814 981,446 199,184
Loan repayments 70,041 37,202 27,912 7,166 8,940 1,423 299
__________________________________________________________________________________________________________________________
Total additions (deductions) 11,197,498 5,211,125 3,577,371 2,215,718 885,872 740,079 315,762
__________________________________________________________________________________________________________________________
Deductions from net assets attributed to:
Distributions to associates (note 3) (2,045,232) (768,522) (295,460) (278,506) (235,648) (198,596) (25,830)
Loans to participants (46,919) (70,589) (39,561) (28,017) (2,990) (37,305) (689)
Investment expenses (473) (592) (392) (464) (98) (179) (62)
__________________________________________________________________________________________________________________________
Total (deductions) additions (2,092,624) (839,703) (335,413) (306,987) (238,736) (236,080) (26,581)
__________________________________________________________________________________________________________________________
Net increase 9,104,874 4,371,422 3,241,958 1,908,731 647,136 503,999 289,181
Net assets available for participants:
Beginning of year 25,223,029 6,465,183 3,929,709 2,487,449 1,527,015 1,062,264 -
__________________________________________________________________________________________________________________________
End of year $ 34,327,903 10,836,605 7,171,667 4,396,180 2,174,151 1,566,263 289,181
=========== ========== ========= ========= ========= ========= =======
</TABLE>
<TABLE>
______________________________________________________________________________________
Fund H Fund I Loans Total
_____________________________________________________________________________________
<S> <C> <C> <C> <C>
Additions to net assets attributed to:
Net appreciation (depreciation) in
fair value of investments $ 1,014 - - 9,415,697
Interest and dividends 2,845 42,058 32,414 3,251,403
Interfund transfers 54,019 229,619 - -
Employer contributions (note 2) - - - 1,026,321
Associates' contributions (note 2) 132,367 - - 10,791,357
Loan repayments 424 - (153,407) -
______________________________________________________________________________________
Total additions (deductions) 190,669 271,677 (120,993) 24,484,778
______________________________________________________________________________________
Deductions from net assets attributed to:
Distributions to associates (note 3) (2,370) - (4,091) (3,854,255)
Loans to participants (3,473) - 229,543 -
Investment expenses - - - (2,260)
______________________________________________________________________________________
Total (deductions) additions (5,843) - 225,452 (3,856,515)
______________________________________________________________________________________
Net increase 184,826 271,677 104,459 20,628,263
Net assets available for participants:
Beginning of year - - 325,261 41,019,910
______________________________________________________________________________________
End of year $ 184,826 271,677 429,720 61,648,173
========= ======= ======= ==========
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
<TABLE>
CERNER CORPORATION
FOUNDATIONS RETIREMENT PLAN
Statement of Changes in Net Assets Available for Participants
Year ended December 31, 1997
__________________________________________________________________________________________________________________________________
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 $ 6,448,871 (287,262) 188,217 123,294 42,868 - - 6,515,988
Interest and dividends 2,309 1,300,685 569,444 390,093 148,336 52,183 25,618 2,488,668
Interfund transfers 192,065 (105,418) (93,907) 43,729 1,650 (38,119) - -
Employer contributions (note 2) 730,281 - - - - - - 730,281
Associates' contributions (note 2) 2,684,698 1,832,993 1,079,568 688,480 411,947 259,980 6,957,666
Loan repayments 64,596 23,188 13,762 9,062 1,965 266 (112,839) -
__________________________________________________________________________________________________________________________________
Total additions (deductions) 10,122,820 2,764,186 1,757,084 1,254,658 606,766 274,310 (87,221) 16,692,603
__________________________________________________________________________________________________________________________________
Deductions from net assets attributed to:
Distributions to associates (note 3) (1,009,580) (512,867) (323,325) (253,445) (97,000) (42,139) (31,107) (2,269,463)
Loans to participants (82,752) (28,142) (24,511) (6,603) (3,000) (12,000) 157,008 -
Investment expenses (672) (342) (149) (239) (133) (51) - (1,586)
__________________________________________________________________________________________________________________________________
Total (deductions) additions (1,093,004) (541,351) (347,985) (260,287) (100,133) (54,190) 125,901 (2,271,049)
__________________________________________________________________________________________________________________________________
Net increase 9,029,816 2,222,835 1,409,099 994,371 506,633 220,120 38,680 14,421,554
Net assets available for participants:
Beginning of year 16,193,213 4,242,348 2,520,610 1,493,078 1,020,382 842,144 286,581 26,598,356
__________________________________________________________________________________________________________________________________
End of year $ 25,223,029 6,465,183 3,929,709 2,487,449 1,527,015 1,062,264 325,261 41,019,910
========== ========= ========= ========= ========= ========= ======= ==========
See accompanying notes to financial statements.
</TABLE>
5
<PAGE>
CERNER CORPORATION FOUNDATIONS
RETIREMENT PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(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
Substantially 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.
Purchases and sales of securities are recorded on a trade-date
basis.
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.
6
(Continued)
<PAGE>
CERNER CORPORATION FOUNDATIONS
RETIREMENT PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(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 nine 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 (American Century Balanced), Fund F (Benham Capital
Preservation Fund which primarily invests in short-term
investments and guaranteed insurance contracts), Fund G
(American Century Value Fund), Fund H (Twentieth Century
International Growth Fund), and Fund I (Charles B. Schwab
Personal Choice Account). 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, 1998 and 1997, 79,572 shares and
38,338 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 25, 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.
7
(Continued)
<PAGE>
CERNER CORPORATION FOUNDATIONS
RETIREMENT PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(5) Plan Participants
The following summarizes the number of associate participants
by fund as of December 31, 1998:
<TABLE>
<S> <C>
Cerner stock account 2,348
Twentieth Century Mutual Funds:
Ultra Investors 1,553
Growth Investors 1,298
Select Investors 922
International Growth Fund 198
Benham Preservation Fund 418
American Century Balanced Fund 584
American Century Value Fund 208
Charles B. Schwab Personal
Choice Account 18
=====
</TABLE>
Because associates may invest in more than one fund, the number
of associate participants above exceeds the total number of
associate participants.
8
<PAGE>
<TABLE>
CERNER CORPORATION Schedule 1
FOUNDATIONS RETIREMENT PLAN
Item 27(a) - Schedule of Assets Held for Investment Purposes
December 31, 1998
<CAPTION>
__________________________________________________________________________________________________________
Asset Description Cost Fair Value
__________________________________________________________________________________________________________
<S> <C> <C> <C>
Cerner Corporation 1,276,229 shares of common stock $ 16,241,387 34,139,126
Twentieth Century Ultra Investors Mutual Fund, 321,455 shares 9,141,810 10,739,820
Twentieth Century Growth Investors Mutual Fund, 261,509 shares 6,424,060 7,102,584
Twentieth Century Select Investors Mutual Fund, 91,878 shares 4,013,307 4,354,084
Twentieth Century Balanced Investors Mutual Fund, 116,479 shares 2,101,482 2,151,364
Benham 1,556,636 units of participation in a pooled fund 1,556,636 1,556,636
American Century Value Mutual Fund, 46,347 shares 311,147 280,397
Loans to participants Loans to participants (bearing interest from 7%
to 10%) 429,720 429,720
Twentieth Century International Growth Mutual Fund, 18,439 shares 174,860 176,646
Charles B. Schwab Schwab Personal Choice Account, 271,677 shares 271,677 271,677
__________________________________________________________________________________________________________
$ 40,666,086 61,202,054
=========== ==========
See accompanying independent auditors' report.
</TABLE>
9
<PAGE>
<TABLE>
CERNER CORPORATION Schedule 2
FOUNDATIONS RETIREMENT PLAN
Item 27(d) - Schedule of Reportable Transactions
Year ended December 31, 1998
_____________________________________________________________________________________________________
Identity of party Description Purchase Selling Original Net gain
involved of asset price price cost (loss)
_____________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
Cerner Corporation Common stock $ 4,640,928 - 4,640,928 -
Cerner Corporation Common stock - 2,523,029 1,158,789 1,364,240
American Century Ultra fund 3,989,550 - 3,989,550 -
American Century Growth fund 3,240,907 - 3,240,907 -
American Century Select fund 2,443,395 - 2,443,395 -
========= ========= ========= =========
</TABLE>
Transactions involving Cerner Corporation common stock are party-in-interest
transactions.
NOTES:
A reportable transaction is defined by the Department of Labor as:
- A single transaction in excess of 5% of the fair value of Plan assets.
- 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.
- 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.
- 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, 1998.
See accompanying independent auditors' report.
11
<PAGE>
Independent Auditors' Consent
The Board of Directors
Cerner Corporation:
We consent to incorporation by reference in the registration statements
(No. 33-56868, No. 33-55082, No. 33-41580, No. 33-39777, No. 33-39776,
No. 33-20155, and No. 33-15156) on Form S-8 of Cerner Corporation of our
report dated June 15, 1999, relating to the statements of net assets
available for participants of Cerner Corporation Foundations Retirement
Plan as of December 31, 1998 and 1997, and the related statements of changes
in net assets available for participants for the years then ended and the
related supplemental schedules of assets held for investment purposes and
reportable transactions, which report is included herein.
KPMG, LLP
Kansas City, Missouri
June 29, 1999
<PAGE>
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange
Act of 1934, the trustees (or other persons who administer the employee
benefit plan) have duly caused this annual report to be signed on its
behalf by the undersigned hereunto duly authorized.
FOUNDATIONS RETIREMENT PLAN
Dated: __6/29/99______________ By: _\s\David M. Evans_____
