FORM 11-K
[ X ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1998.
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________ to __________.
Commission file number 0-15975.
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
401(K) PLAN OF LABONE, INC.
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
LABONE, INC.
10101 Renner Blvd.
Lenexa, Kansas 66219
REQUIRED INFORMATION
<PAGE>
401(K) PLAN OF
LABONE, INC
Financial Statements and Schedules
December 31, 1998, 1997, and 1996
(With Independent Auditors' Report Thereon)
(ii)
<PAGE>
401(k) PLAN OF LABONE, INC.
Table of Contents
Page
Independent Auditors' Report 1
Financial Statements:
Statement of Net Assets Available for Benefits, December 31, 1998 2
Statement of Net Assets Available for Benefits, December 31, 1997 3
Statement of Changes in Net Assets Available for Benefits, Year
ended December 31, 1998 4
Statement of Changes in Net Assets Available for Benefits, Year
ended December 31, 1997 5
Statement of Changes in Net Assets Available for Benefits, Year
ended December 31, 1996 6
Notes to Financial Statements 7
Schedules
1 Item 27(a) - Schedule of Assets Held for Investment Purposes 13
2 Item 27(d) - Schedule of Reportable Transactions 14
(iii)
<PAGE>
Independent Auditors' Report
The Board of Directors
LabOne, Inc.:
We have audited the accompanying statements of net assets available for
benefits of the 401(k) Plan of LabOne, Inc. as of December 31, 1998 and
1997 and the related statements of changes in net assets available for
benefits for each of the years in the three-year period ended December 31,
1998. 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 benefits of the
401(k) Plan of LabOne, Inc. at December 31, 1998 and 1997 and the changes
in net assets available for benefits for each of the years in the
three-year period ended December 31, 1998, in conformity with generally
accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the
basic financial statements taken as a whole. The supplemental 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 benefits
and the statements of changes in net assets available for benefits is
presented for purposes of additional analysis rather than to present the
net assets available for benefits and changes in net assets available for
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 a
whole.
(insert electronic signature)
June 4, 1999
<PAGE>
<TABLE>
<CAPTION>
401(k) PLAN OF LABONE, INC.
Statement of Net Assets Available for Benefits
December 31, 1998
<S> <C> <C> <C> <C> <C> <C> <C>
American American American American
American American Century Century Century American Century
Century Century Investments, Investments, Investments, Century Investments,
Investments, Investments, Twentieth Benham Benham Investments, Strategic
Twentieth American Century Premium Premium Equity Allocation
Century Century International Capital Capital Growth Conservative
Ultra Fund Value Fund Growth Fund Reserve Fund Bond Fund Fund Fund
----------- ----------- ---------- ------------ ---------- ---------- ------------
Assets:
Investments (note 2): $
Common stock - - - - - - -
American Century Investments,
Twentieth Century Ultra Fund 4,713,519 - - - - - -
American Century Investments,
American Century Value Fund - 1,728,403 - - - - -
American Century Investments,
Twentieth Century International
Growth Fund - - 1,425,256 - - - -
American Century Investments,
Benham Premium Capital
Reserve Fund - - - 789,621 - - -
American Century Investments,
Benham Premium Capital Bond
Fund - - - - 329,287 - -
American Century Investments,
Equity Growth Fund - - - - - 355,436 -
American Century Investments,
Strategic Allocation - Conservative Fund - - - - - - 39,916
American Century Investments,
Strategic Allocation-Moderate Fund - - - - - - -
American Century Investments,
Strategic Allocation-Aggressive Fund - - - - - - -
Loans to participants - - - - - - -
Receivables:
Receivables from employees 50,819 25,090 18,717 6,024 4,422 9,132 698
Receivables from employer - - - - - - -
Receivables from other accounts - - - - - - -
----------- ---------- ---------- ----------- --------- --------- ----------
Total assets 4,764,338 1,753,493 1,443,973 795,645 333,709 364,568 40,614
Liabilities-unapplied forfeitures - - - - - - -
----------- ---------- ---------- ----------- --------- --------- ----------
Net assets available
for benefits 4,764,338 1,753,493 1,443,973 795,645 333,709 $ 364,568 40,614
=========== ========== ========= =========== ========= ========= ===========
See accompanying notes to financial statements.
<CAPTION>
(table continued)
American American
Century Century
Investments, Investments,
Strategic Strategic
Allocation- Allocation- LabOne
Moderate Aggressive stock Loan
Fund Fund account account Total
----------- ----------- ---------- ------- -----
Investments (note 2): $
Common stock - - 4,416,424 - 4,416,424
American Century Investments,
Twentieth Century Ultra Fund - - - - 4,713,519
American Century Investments,
American Century Value Fund - - - - 1,728,403
American Century Investments,
Twentieth Century International
Growth Fund - - - - 1,425,256
American Century Investments,
Benham Premium Capital
Reserve Fund - - - - 789,621
American Century Investments,
Benham Premium Capital Bond
Fund - - - - 329,287
American Century Investments,
Equity Growth Fund - - - - 355,436
American Century Investments,
Strategic Allocation - Conservative Fund - - - - 39,916
American Century Investments,
Strategic Allocation - Moderate Fund 52,515 - - - 52,215
American Century Investments,
Strategic Allocation - Aggressive Fund - 49,211 - - 49,211
Loans to participants - - - 518,693 518,693
Receivables:
Receivables from employees 2,470 1,850 11,390 - 130,612
Receivables from employer - - 65,305 - 65,305
Receivables from other accounts - - 12,214 - 12,214
--------- -------- --------- -------- ----------
Total assets 54,685 51,061 4,505,333 518,693 14,626,112
Liabilities - unapplied forfeitures - - 12,214 - 12,214
--------- ------- --------- --------- -----------
Net assets available for benefits $54,685 $51,061 $4,493,119 518,693 14,613,898
========= ======== ========== ========= ===========
See accompanying notes to financial statements.
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
401(k) PLAN OF LABONE, INC.
Statement of Net Assets Available for Benefits
December 31, 1997
<S> <C> <C> <C> <C> <C> <C>
American American American American
American American Century Century Century Century American
Century Century Investments Investments, Investments, Investments, Century
Investments, Investments, Twentieth Benham Benham Strategic Investments
Twentieth American Century Premium Premium Allocation Equity
Century Century International Capital Capital Aggressive Growth
Ultra Fund Value Fund Growth Fund Reserve Fund Bond Fund Fund Fund
----------- ---------- ------------- ------------ ---------- ----------- ----------
Assets:
Investments (note 2):
Common stock $ - - - - - - -
American Century Investments,
Twentieth Century Ultra Fund 3,204,476 - - - - - -
American Century Investments,
American Century Value Fund - 1,534,144 - - - - -
American Century Investments,
Twentieth Century International
Growth Fund - - 1,143,248 - - - -
American Century Investments,
Benham Premium Capital
Reserve Fund - - - 886,309 - - -
American Century Investments,
Benham Premium Capital Bond Fund - - - - 289,298 - -
American Century Investments,
Equity Growth Fund - - - - - - 80,100
Loans to participants - - - - - - -
Receivables:
Receivables from employees 43,660 20,991 17,099 6,090 3,521 357 1,654
Receivables from employer - - - - - - -
Receivables from other accounts - - - - - - -
----------- ---------- ---------- ------------ --------- --------- --------
Total assets 3,248,136 1,555,135 1,160,347 892,399 292,819 357 81,754
Liabilities - unapplied forfeitures - - - - - - -
----------- ---------- ---------- ------------ --------- --------- --------
Net assets available for
benefits $ 3,248,136 1,555,135 1,160,347 892,399 292,819 357 81,754
=========== ========== ========== ============ ========= ========= =========
See accompanying notes to financial statements.
<CAPTION>
(Table continued)
<S> <C> <C> <C> <C>
LabOne Life
stock insurance Loan
account account account Total
------- --------- ------- -----
Assets:
Investments (note 2):
Common stock 4,859,081 - - 4,859,081
American Century Investments,
Twentieth Century Ultra Fund - - - 3,204,476
American Century Investments,
American Century Value Fund - - - 1,534,144
American Century Investments,
Twentieth Century International
Growth Fund - - - 1,143,248
American Century Investments,
Benham Premium Capital
Reserve Fund - - - 886,309
American Century Investments,
Benham Premium Capital Bond Fund - - - 289,298
American Century Investments,
Equity Growth Fund - - - 80,100
Loans to participants - - 563,143 563,143
Receivables:
Receivables from employees 14,034 - - 107,406
Receivables from employer 53,703 - - 53,703
Receivables from other accounts 39,750 - - 39,750
-------- -------- ------- ----------
Total assets 4,966,568 - 563,143 12,760,658
Liabilities - unapplied forfeitures 39,750 - - 39,750
--------- -------- ------- ----------
Net assets available for benefits 4,926,818 - 563,143 12,720,908
========= ======== ======= ==========
See accompanying notes to financial statements.
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
401(k) PLAN OF LABONE, INC.
Statement of Changes in Net Assets Available for Benefits
Year ended December 31, 1998
<S> <C> <C> <C> <C> <C> <C> <C>
American American American
American American Century Century Century American Century
Century Century Investments, Investments, Investments, Century Investments,
Investments, Investments, Twentieth Benham Benham Investment Strategic
Twentieth American Century Premium Premium Equity Allocation
Century Century International Capital Capital Growth Conservative
Ultra Value Growth Reserve Bond Fund Fund Fund
Fund Fund Fund Fund
---------- ------------- ------------- ------------ ------------ ---------- ------------
Additions to net assets
attributed to:
Investment income:
Net appreciation
(depreciation) in
fair value of
investments $ 773,633 (217,967) 197,506 - 3,927 43,615 311
Interest 23 - - 13 14 - -
Dividends 400,692 295,314 23,910 41,287 19,536 12,338 1,816
----------- ---------- ---------- ---------- --------- -------- --------
1,174,348 77,347 221,416 41,300 23,477 55,953 2,127
Less investment
expenses 1,371 674 755 309 103 70 25
----------- ---------- ---------- ---------- --------- -------- ---------
Net investment
income (loss) 1,172,977 76,673 220,661 40,991 23,374 55,883 2,102
Contributions (note 3):
Employee 516,968 258,282 175,879 63,565 52,484 77,925 8,507
Employer - - - - - - -
Rollovers from other
investment plans 2,697 43,971 19,038 - - 1,348 -
----------- ---------- ---------- ---------- --------- -------- ---------
Total additions 1,692,642 378,926 415,578 104,556 75,858 135,156 10,609
---------- ---------- ---------- ---------- --------- -------- ---------
Deductions from net assets
attributed to:
Distributions to
participants (198,976) (90,453) (68,650) (167,236) (3,936) (1,382) -
Loans to participants (45,725) (106,438) (6,483) (27,485) (24,244) (20,556) (1,700)
Loan repayments 110,197 65,858 35,750 18,553 11,296 22,267 11,457
Transfers between funds (41,936) (49,535) (92,569) (25,142) (18,084) 143,329 20,248
---------- ----------- --------- ---------- ---------- -------- ----------
Total deductions (176,440) (180,568) (131,952) (201,310) (34,968) 147,658 30,005
----------- ----------- --------- ---------- ---------- -------- ----------
Net increase 1,516,202 198,358 283,626 (96,754) 40,890 282,814 40,614
Net assets available for
benefits:
Beginning of year 3,248,136 1,555,135 1,160,347 892,399 292,819 81,754 -
----------- ---------- ---------- ---------- ---------- -------- ----------
End of year $ 4,764,338 1,753,493 1,443,973 795,645 333,709 364,568 40,614
=========== ========== ========= ========== ========== ======== ==========
See accompanying notes to financial
statements.
<CAPTION>
(table continued)
<S> <C> <C> <C> <C> <C> <C>
American American
Century Century
Investements, Investments,
Strategic Strategic LabOne
Allocation Allocation- stock Loan
Moderate Aggressive account account Total
Fund Fund ---------- ---------- -----------
Additions to net assets ----------- -----------
attributed to:
Investment income:
Net appreciation
(depreciation) in
fair value of
investments 1,688 1,105 (1,489,115) - (685,297)
Interest - - - 47,625 47,675
Dividends 2,050 1,502 229,245 - 1,027,690
------ --------- ---------- ---------- ----------
3,738 2,607 (1,259,870) 47,625 390,068
Less investment
expenses 21 23 66 - 3,417
------ --------- ---------- ---------- ----------
Net investment
income (loss) 3,717 2,584 (1,259,936) 47,625 386,651
Contributions (note 3):
Employee 20,242 16,478 149,908 - 1,340,238
Employer - - 601,801 - 601,801
Rollovers from other
investment plans - 5,393 350,155 - 422,602
------ --------- ---------- ---------- -----------
Total additions 23,959 24,455 (158,072) 47,625 2,751,292
------ --------- ---------- ---------- -----------
Deductions from net assets
attributed to:
Distributions to
participants (85) (2,036) (286,779) (38,769) (858,302)
Loans to participants (620) (236) (30,327) 263,814 -
Loan repayments 13,101 10,427 18,990 (317,896) -
Transfers between funds 18,330 18,094 22,489 776 -
------ --------- ---------- ---------- ----------
Total Deductions 30,726 26,249 (275,627) (92,075) (858,302)
------ --------- ---------- ---------- ----------
Net increase 54,685 50,704 (433,699) (44,450) 1,892,990
Net assets available for
benefits:
Beginning of year - 357 4,926,818 563,143 12,720,908
------ --------- --------- ---------- -----------
End of year 54,685 51,061 4,493,119 518,693 14,613,898
====== ========= ========== ========== ===========
See accompanying notes to financial
statements.
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
401(k) PLAN OF LABONE, INC.
Statement of Changes in Net Assets Available for Benefits
Year ended December 31, 1997
<S> <C> <C> <C> <C> <C> <C>
American American American American
American American Century Century Century Century
Century Century Investments, Investments, Investments, Investments,
Investments, Investments, Twentieth Benham Benham Strategic
Twentieth American Century Premium Premium Allocation -
Century Century International Capital Capital Aggressive
Ultra Fund Value Fund Growth Fund Reserve Fund Bond Fund Fund
----------- ----------- ------------- ------------ ---------- ------------
Additions to net assets attributed to:
Investment income:
Net appreciation (depreciation) in
fair value of investments $ (64,012) 66,699 23,292 - 5,345 -
Interest - - - 39 - -
Dividends 655,077 246,509 157,145 40,151 19,184 -
------------ ---------- ---------- ------------ ----------- -----------
591,065 313,208 180,437 40,190 24,529 -
Less investment expenses 1,885 551 932 311 129 -
------------ ---------- ---------- ------------ ----------- -----------
Net investment income
(loss) 589,180 312,657 179,505 39,879 24,400 -
Contributions (note 3):
Employee 468,425 216,075 180,581 77,629 48,970 357
Employer - - - - - -
Rollovers from other investment
plans 3,451 2,027 2,770 1,254 1,254 -
------------ ----------- ---------- ------------ ---------- -----------
Total additions 1,061,056 530,759 362,856 118,762 74,624 357
------------ ----------- ---------- ------------ ---------- -----------
Deductions from net assets attributed to:
Distributions to participants (142,297) (62,659) (62,027) (27,222) (12,585) -
Loans to participants (158,354) (137,822) (6,955) (46,729) (26,088) -
Loan repayments 117,444 45,183 43,545 12,059 11,138 -
Transfers between funds (103,792) 29,265 (49,991) 151,155 (27,201) -
------------ ---------- ---------- ------------ ---------- -----------
Total deductions (286,999) (126,033) (75,428) 89,263 (54,736) -
------------ ---------- ---------- ------------ ---------- -----------
Net increase 774,057 404,726 287,428 208,025 19,888 357
Net assets available for benefits:
Beginning of year 2,474,079 1,150,409 872,919 684,374 272,931 -
------------ ---------- ---------- ------------ ---------- -----------
End of year $ 3,248,136 1,555,135 1,160,347 892,399 292,819 357
============ ========== ========== ============ ========== ===========
See accompanying notes to financial statements.
<CAPTION>
(table continued)
<S> <C> <C> <C> <C> <C>
American
Century
Investments,
Equity LabOne Life
Growth stock insurance Loan
Fund account account account Total
----------- ----------- ---------- ------------ ----------
Additions to net assets attributed to:
Investment income:
Net appreciation (depreciation) in
fair value of investments $ (7,927) (313,476) - - (290,079)
Interest - 1,601 17,539 39,516 58,695
Dividends 8,871 184,722 - - 1,311,659
----------- --------- ---------- -------- ---------
944 (127,153) 17,539 39,516 1,080,275
Less investment expenses 2 163 - - 3,973
----------- --------- ---------- -------- ---------
Net investment income
(loss) 942 (127,316) 17,539 39,516 1,076,302
Contributions (note 3):
Employee 1,654 137,218 - - 1,130,909
Employer - 567,580 - - 567,580
Rollovers from other investment
plans - 1,997 - - 12,753
---------- -------- ---------- -------- ----------
Total additions 2,596 579,479 17,539 39,516 2,787,544
----------- -------- ---------- -------- ----------
Deductions from net assets attributed to:
Distributions to participants - (206,925) - (16,604) (530,319)
Loans to participants - (3,055) - 379,003 -
Loan repayments - 54,197 - (283,566) -
Transfers between funds 79,158 (61,055) (17,539) - -
----------- ---------- ---------- -------- ----------
Total deductions 79,158 (216,838) (17,539) 78,833 (530,319)
----------- --------- ---------- -------- ----------
Net increase 81,754 362,641 - 118,349 2,257,225
Net assets available for benefits:
Beginning of year - 4,564,177 - 444,794 10,463,683
----------- ----------- ---------- -------- ----------
End of year $ 81,754 4,926,818 - 563,143 12,720,908
=========== =========== ========== ======== ==========
See accompanying notes to financial statements.
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
401(k) PLAN OF LABONE, INC.
Statement of Changes in Net Assets Available for Benefits
Year ended December 31, 1996
<S> <C> <C> <C> <C> <C> <C> <C>
American American American
American American Century Century Century
Century Century Investments, Investments, Investments,
Investments, Investments, Twentieth Benham Benham
Twentieth American Century Premium Premium LabOne Life
Century Century International Capital Capital stock insurance
Ultra Fund Value Fund Growth Fund Reserve Fund Bond Fund account account
---------- ---------- ----------- ------------ ----------- --------- ---------
Additions to net assets attributed to:
Investment income:
Net appreciation (depreciation) in
fair value of investments $ 143,487 102,361 13,895 - (8,058) 1,046,059 -
Interest - - - 1,829 3 1,735 -
Dividends 139,887 113,182 89,855 34,374 14,198 165,836 -
---------- ---------- ----------- ------------ ----------- --------- --------
283,374 215,543 103,750 36,203 6,143 1,213,630 -
Less investment expenses 1,592 642 772 197 106 145 -
----------- ----------- ----------- ------------ ----------- --------- --------
Net investment income 281,782 214,901 102,978 36,006 6,037 1,213,485 -
Contributions (note 3):
Employee 437,601 182,529 159,776 73,717 47,713 118,296 -
Employer - - - - - 454,442 -
Rollovers from other investment
plans 9,946 2,788 3,537 1,150 1,801 2,299 -
---------- ---------- ----------- ------------ ----------- --------- --------
Total additions 729,329 400,218 266,291 110,873 55,551 1,788,522 -
---------- ---------- ----------- ------------ ----------- --------- --------
Deductions from net assets attributed to:
Distributions to participants (214,107) (76,079) (73,082) (58,673) (18,975) (371,318) -
Insurance premiums - - - - - - (2,191)
Loans to participants (80,775) (48,757) (2,709) (51,422) (24,287) (22,691) -
Loan repayments 92,824 42,793 36,250 13,876 12,169 20,520 -
Transfers between funds (17,361) 73 8,771 83,341 19,898 (96,913) 2,191
----------- --------- ----------- ------------ ---------- ---------- -------
Total deductions (219,419) (81,970) (30,770) (12,878) (11,195) (470,402) -
----------- --------- ----------- ------------ ---------- ---------- -------
Net increase 509,910 318,248 235,521 97,995 44,356 1,318,120 -
Net assets available for benefits:
Beginning of year 1,964,169 832,161 637,398 586,379 228,575 3,246,057 -
---------- ---------- ----------- ------------ ---------- --------- --------
End of year $ 2,474,079 1,150,409 872,919 684,374 272,931 4,564,177 -
=========== ========== =========== ============ ========== ========= ========
See accompanying notes to financial statements.
<CAPTION>
(table continued)
<S> <C> <C>
Loan
account Total
--------- ------------
Additions to net assets attributed to:
Investment income:
Net appreciation (depreciation) in
fair value of investments$ - 1,297,744
Interest 33,262 36,829
Dividends - 557,332
--------- ------------
33,262 1,891,905
Less investment expenses - 3,454
--------- ------------
Net investment income 33,262 1,888,451
Contributions (note 3):
Employee - 1,019,632
Employer - 454,442
Rollovers from other investment plans - 21,521
---------- -------------
Total additions 33,262 3,384,046
---------- -------------
Deductions from net assets attributed to:
Distributions to participants (27,289) (839,523)
Insurance premiums - (2,191)
Loans to participants 230,641 -
Loan repayments (218,432) -
Transfers between funds - -
---------- -------------
Total deductions (15,080) (841,714)
---------- -------------
Net increase 18,182 2,542,332
Net assets available for benefits:
Beginning of year 426,612 7,921,351
---------- -------------
End of year 444,794 10,463,683
========== =============
See accompanying notes to financial statements.
</TABLE>
6
<PAGE>
401(k) PLAN OF LABONE, INC.
Notes to Financial Statements
December 31, 1998, 1997, and 1996
(1) Summary of Significant Accounting Policies
(a) Organization
The following description of the 401(k) Plan of LabOne, Inc. (the
Plan) provides only general information. Participants should refer to
the Summary Plan Description text for a more complete description of
the Plan's provisions.
The Plan was adopted by the Board of Directors of LabOne, Inc. (the
Company) effective January 1, 1987. The Plan is administered by the
Company. Employees of the Company are eligible for participation at
the beginning of each calendar quarter following the date the employee
completes five hundred hours of service, attains age 20 1/2 and
completes six consecutive months of employment or one year of
eligibility service, as defined.
The Plan allows participating employees to deduct their contributions
from personal taxable income. Contributions made by the Company and
participating employees will not be required to be included in the
employees' taxable income until the year of withdrawal from the Plan.
(b) Basis of Presentation
The accompanying financial statements have been prepared on an accrual
basis of accounting.
(c) Expenses
Substantially all costs and expenses incurred in administering the
Plan are paid by the Company.
(d) Payment of Benefits
At December 31, 1998, participants whose account balances totaled
$192,691 had notified the Plan Administrator that they had elected to
withdraw from the Plan. This amount is presented herein as a component
of net assets in the accompanying financial statements, but is
presented as a liability of the Plan on Form 5500.
The following is a reconciliation of net assets available for benefits
per the financial statements to the Form 5500 at December 31, 1998 and
1997:
1998 1997
---- ----
Net assets available for benefits per
the financial statemetns $14,613,898 12,720,908
Amounts allocated to withdrawing
participants (192,691) (55,728)
------------ -----------
Net assets available for
benefits per the Form 5500 $14,421,207 12,665,180
============ ===========
7 (continued)
<PAGE>
401(k) PLAN OF LABONE, INC.
Notes to Financial Statements
December 31, 1998, 1997, and 1996
The following is a reconciliation of distributions to participants per
the financial statements to the Form 5500:
Year Ended
December 31,
1998
------------
Distributions to participants per the
financial statements $ 858,302
Add amounts allocated to withdrawing
participants at December 31, 1998 192,691
Less amounts allocated to withdrawing
participants at December 31, 1997 (55,728)
-----------
Distributions paid to particpants per
the Form 5500 $ 995,265
===========
(e) Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ
from those estimates.
(f) Investments
The Plan's investments are held in a bank trust account. Investments
in securities are stated at fair value. The fair value of marketable
securities is based upon quotations from national securities
exchanges. Plan assets include investments in common stock of the
Company, an 82%-owned subsidiary of Lab Holdings, Inc., at December
31, 1998.
(g) Forfeitures
Forfeitures are based on the nonvested portion of the employer
contributions upon employee termination. Forfeited amounts are applied
as a reduction of Company contributions.
8 (Continued)
<PAGE>
401(k) PLAN OF LABONE, INC.
Notes to Financial Statements
December 31, 1998, 1997, and 1996
(2) Investments
Plan investments at December 31, 1998 were comprised of:
Number Current
of Units Cost value
-------- ---- -------
Common Stocks:
LabOne, Inc. 334,959 $5,329,056 4,416,424
---------- ---------
Mutual Funds:
American Century Investments,
Twentieth Century Ultra Fund 141,081 3,813,916 4,713,519
American Century Investments,
American Century Value Fund 285,686 1,835,252 1,728,403
American Century Investments,
Twentieth Century International
Growth Fund 148,774 1,195,195 1,425,256
American Century Investments
Benham Premium Capital Reserve
Fund 789,621 789,621 789,621
American Century Investments
Benham Premium Capital Bond Fund 32,032 322,453 329,287
American Century Investments
Equity Growth Fund 15,651 319,421 355,436
American Century Investments
Strategic Allocation -
Conservative Fund 7,257 39,597 39,916
American Century Investments
Strategic Allocation -
Moderate Fund 8,408 50,524 52,215
American Century Investments
Strategic Allocation -
Aggressive Fund 7,445 48,089 49,211
======= --------- ----------
Total mutual funds 8,414,068 9,482,864
--------- ----------
Loans to participants 518,693 518,693
--------- ----------
Total investments $14,261,817 14,417,981
=========== ==========
9 (Continued)
<PAGE>
401(k) PLAN OF LABONE, INC.
Notes to Financial Statements
December 31, 1998, 1997, and 1996
Plan investments at December 31, 1997 were comprised of:
Number Current
of Units Cost value
-------- ---- --------
Common Stocks:
LabOne, Inc. 275,707 $4,347,199 4,859,081
---------- ---------
Mutual Funds:
American Century Investments,
Twentieth Century Ultra Fund 117,380 3,028,828 3,204,476
American Century Investments,
American Century Value Fund 220,740 1,403,432 1,534,144
American Century Investments,
Twentieth Century International
Growth Fund 139,591 1,089,133 1,143,248
American Century Investments
Benham Premium Capital Reserve
Fund 886,309 886,309 886,309
American Century Investments
Benham Premium Capital Bond Fund 28,502 284,064 289,298
American Century Investments
Equity Growth Fund 4,207 88,027 80,100
======= --------- ----------
Total mutual funds 6,779,793 7,137,575
--------- ----------
Loans to participants 563,143 563,143
--------- ----------
Total investments $11,690,135 12,559,799
=========== ==========
During 1997, the Company increased its investment options available to
participants. The new funds include the following American Century Funds:
Strategic Allocation - Conservative Fund, Strategic Allocation - Moderate
Fund, Strategic Allocation - Aggressive Fund and Equity Growth Fund. The
Strategic Allocation - Conservative Fund and Strategic Allocation -
Moderate Fund experienced no activity during 1997.
At June 4, 1999, the fair value of 334,959 shares of common stock of the
Company was $3,977,638.
10 (Continued)
<PAGE>
401(k) PLAN OF LABONE, INC.
Notes to Financial Statements
December 31, 1998, 1997, and 1996
(3) Contributions
Participating employees may elect to contribute to the Plan up to 10% of
their annual earnings subject to certain Internal Revenue Service
limitations. The Company has the discretion to contribute up to an
additional 50% of the participant's contributions, not to exceed 5% of the
participant's annual compensation. The Company elected to contribute the
maximum amount for 1998, 1997, and 1996. Prior to July 22, 1987, all
Company contributions were invested in what is now Lab Holdings, Inc.
common stock. Lab Holdings, Inc. sold 5,750,000 shares of its Company
common stock in a public offering on July 22, 1987. Subsequent to that
date, all Company contributions have been invested in Company common stock.
A participating employee may elect to transfer LabOne stock account funds
at the end of each month. All other funds may be transferred between
accounts at any time upon notification to American Century Investments.
Effective for Plan years 1996 and thereafter, the Company amended the Plan
during 1997 to redefine compensation for highly compensated employees.
Severance pay for highly compensated employees is not considered
compensation for Plan purposes. Therefore, highly compensated employees are
restricted from making Plan contributions from severance pay.
(4) Obligations for Benefits
Upon retirement or termination of employment, Plan participants are
entitled to receive full value of their contributions and earnings thereon.
Each participant becomes 100% vested in Company contributions after five
years of service and is 100% vested upon disability, death or attainment of
age sixty-five while employed by the Company.
(5) Loans to Participants
Loans to participants may be authorized by the Plan's Administrative
Committee. The amount may not be less than $500 and may not exceed one-half
of the participants' vested account balances (limited to $50,000). Loans
must carry a reasonable rate of interest defined as not less than the prime
rate plus 1% at the date of the last day of the month preceding loan
issuance. The loan period varies from one to five years.
(6) Federal Income Taxes
The Plan has received a determination letter from the Internal Revenue
Service, dated December 17, 1997, stating that the Plan meets the
requirements of Section 401(a) of the Internal Revenue Code and the trust
is exempt from federal income taxes under the provisions of Section 501(a)
of the Internal Revenue Code.
The Plan Administrator is not aware of any activity or transactions that
may adversely affect the qualified status of the Plan.
11 (Continued)
<PAGE>
Participants will not be taxed on Company contributions, their pretax
contributions up to $10,000 and $9,500 in 1998 and 1997, respectively, or
income of the trust until they receive distributions from the Plan.
Participants' pretax contributions are subject to social security taxes and
federal unemployment taxes.
(7) Plan Participants
The following summarizes the number of associate participants by fund as of
December 31, 1998 and 1997:
1998 1997
---- ----
LabOne stock account 509 448
American Century Investments,
Twentieth Century Ultra Fund 397 355
American Century Investments,
American Century Value Fund 289 269
American Century Investments,
Twentieth Century International
Growth Fund 243 230
American Century Investments
Benham Premium Capital Reserve
Fund 148 149
American Century Investments
Benham Premium Capital Bond Fund 127 121
American Century Investments
Equity Growth Fund 101 3
American Century Investments
Strategic Allocation -
Conservative Fund 22 -
American Century Investments
Strategic Allocation -
Moderate Fund 37 -
American Century Investments
Strategic Allocation -
Aggressive Fund 43 -
==== ====
Included in the LabOne stock account are participants who receive their
employer match in this account, but make their own contributions to another
account.
12
<PAGE>
<TABLE>
<CAPTION>
Schedule 1
401(k) PLAN OF LABONE, INC.
Item 27(a) - Schedule of Assets Held for Investment Purposes
December 31, 1998
<S> <C> <C> <C>
Number Current
Description of investment of units Cost value
-------- ---------- ----------
Common stock:
LabOne, Inc. 334,959 $5,329,056 4,416,424
Mutual funds:
American Century Investments,
Twentieth Century Ultra Fund 141,081 3,813,916 4,713,519
American Century Investments,
American Century Value Fund 285,686 1,835,252 1,728,403
American Century Investments,
Twentieth Century International Growth Fund 148,774 1,195,195 1,425,256
American Century Investments,
Benham Premium Capital Reserve Fund 789,621 789,621 789,621
American Century Investments,
Benham Premium Capital Bond Fund 32,032 322,453 329,287
American Century Investments,
Equity Growth Fund 15,651 319,421 355,436
American Century Investments,
Strategic Allocation - Conservative Fund 7,257 39,597 39,916
American Century Investments,
Strategic Allocation - Moderate Fund 8,408 50,524 52,215
American Century Investments,
Strategic Allocation - Aggressive Fund 7,445 48,089 49,211
====== ---------- ----------
13,743,124 13,899,288
Loans to participants (interest rates on outstanding loans
at December 31, 1998 varied from 7.0% to 10.0%) 518,693 518,693
----------- ----------
Total investments $14,261,817 14,417,981
=========== ==========
See accompanying independent auditors' report.
</TABLE>
13
<PAGE>
<TABLE>
<CAPTION>
Schedule 2
401(k) PLAN OF LABONE, INC.
Item 27(d) - Schedule of Reportable Transactions
December 31, 1998
<S> <C> <C> <C> <C> <C> <C> <C>
Current
Expense value of
incurred Cost asset on
Purchase Selling Lease with of transaction Gain
price price rental transaction asset date (loss)
-------- ------ ----- ----------- -------- ------------- -------
* LabOne, Inc. common stock 1,558,642 - - - 1,558,642 1,558,642 -
* LabOne, Inc. common stock - 512,184 - - 548,782 512,184 (36,598)
American Century Investments,
Twentieth Century Ultra Fund 1,084,770 - - - 1,084,770 1,084,770 -
American Century Investments,
Twentieth Century Ultra Fund - 349,361 - - 299,683 349,361 49,678
American Century Investments,
American Century Value Fund 674,236 - - - 674,236 674,236 -
American Century Investments,
American Century Value Fund - 262,010 - - 242,306 262,010 19,704
========= ======= ===== ========= ======== ========= ========
* Party-in-interest.
See accompanying independent auditors' report.
</TABLE>
14
<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.
401(k) Plan of LabOne, Inc.
(Name of Plan)
DATE: June 30, 1999 /s/ Kurt E. Gruenbacher
-------------------------------------
Kurt E. Gruenbacher, Benefits
Administrative Committee Member
Exhibit List
- ------------
Ex. 24 Consent of KPMG dated June 30, 1999
15
Exhibit 24
INDEPENDENT AUDITORS' CONSENT
The Board of Directors
LabOne, Inc.:
We consent to the incorporation by reference in the Registration Statements (No.
33-51484 and 33-59309) on Form S-8 of LabOne, Inc. of our report dated June 4,
1999 relating to the statements of net assets available for benefits of the
401(k) Plan of LabOne, Inc. as of December 31, 1998 and 1997 and the related
statements of changes in net assets available for benefits for each of the years
in the three-year period ended December 31, 1998, and the supplementary
schedules, which report is included herein.
/s/ KPMG LLP
June 30, 1999
