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Previous: INVESCO GLOBAL HEALTH SCIENCES FUND, NSAR-A, 1999-06-29 |
Next: PALOMAR MEDICAL TECHNOLOGIES INC, 8-K, 1999-06-29 |
<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Mark one)
[x] ANNUAL REPORT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
(NO FEE REQUIRED)
For the fiscal year ended December 31, 1998
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 : 0-19786
PhyCor, Inc. Savings and Profit Sharing Plan
--------------------------------------------
(Full title of the plan and the address of the plan,
if different from that of the issuer named below)
PhyCor, Inc.
30 Burton Hills Blvd., Suite 400
Nashville, Tennessee 37215
--------------------------
(Name of the issuer of the securities held
pursuant to the plan and the address of
its principal executive office)
<PAGE> 2
Items 1-3 Not applicable
Item 4 See pages 3-50.
2
<PAGE> 3
PHYCOR, INC. SAVINGS AND
PROFIT SHARING PLAN
Financial Statements and Schedules
December 31, 1998 and 1997
(With Independent Auditors' Report Thereon)
3
<PAGE> 4
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Table of Contents
<TABLE>
<CAPTION>
PAGE
<S> <C>
Independent Auditors' Report 5
Statements of Net Assets Available for Plan Benefits 6
Statements of Changes in Net Assets Available for Plan Benefits 7
Notes to Financial Statements 8
SCHEDULES:
1 Schedule 1 - Item 27(a) Schedule of Assets Held for Investment Purposes 24
2 Schedules 2, 3, 4, and 5 - Item 27(d) Schedule of Reportable Transactions 47
</TABLE>
4
<PAGE> 5
INDEPENDENT AUDITORS' REPORT
Trustees of the PhyCor, Inc.
Savings and Profit Sharing Plan:
We have audited the accompanying statements of net assets available for plan
benefits of the PhyCor, Inc. Savings and Profit Sharing Plan (Plan) as of
December 31, 1998 and 1997, and the related statements of changes in net assets
available for plan benefits 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 plan benefits of the PhyCor,
Inc. Savings and Profit Sharing Plan as of December 31, 1998 and 1997, and the
changes in net assets available for plan benefits for the years then ended 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 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. These supplemental schedules are the
responsibility of the Plan's management. The schedules 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 18, 1999
5
<PAGE> 6
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 1998 and 1997
<TABLE>
<CAPTION>
ASSETS 1998 1997
------ ------------- ------------
<S> <C> <C>
Assets held by custodians, at fair value:
Money market funds $ 12,441,512 21,203,430
U.S. Government securities 8,297,190 1,728,830
Mutual funds and common trust funds 301,403,315 240,203,830
Corporate debt instruments 248,244 214,859
Common stock 120,914,986 121,876,684
Investments in securities of participating employer 5,859,595 16,273,953
Preferred stock 147,925 144,034
Guaranteed insurance contracts 6,221 1,103,075
Life insurance policies and annuities and other 1,029,334 1,184,686
Loans to participants 3,675,194 3,351,995
Partnership/Joint venture interests 2,420,513 2,763,533
------------- ------------
Total investments 456,444,029 410,048,909
Accrued investment income 77,505 81,478
Cash 385,572 1,523
------------- ------------
Total assets held by custodians 456,907,106 410,131,910
------------- ------------
Contributions receivable:
Employees and participating physicians 848,384 4,161,071
Employer 7,044,759 8,785,170
------------- ------------
Total contributions receivable 7,893,143 12,946,241
------------- ------------
Total assets 464,800,249 423,078,151
LIABILITIES
-----------
Refundable contributions, including
investment income (2,038,960) (3,782,653)
Accrued administrative fees (1,596,893) (89,649)
Other liabilities -- (194,083)
------------- ------------
Net assets available for plan benefits $ 461,164,396 419,011,766
============= ============
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 7
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Statements of Changes in Net Assets Available for Plan Benefits
For the year ended December 31, 1998 and 1997
<TABLE>
<CAPTION>
1998 1997
------------ -----------
<S> <C> <C>
Additions:
Contributions:
Employees and participating physicians $ 27,763,383 28,783,168
Employer 38,996,689 36,067,440
Rollovers and transfers received from other plans 1,386,570 17,241,729
------------ -----------
Total contributions 68,146,642 82,092,337
------------ -----------
Investment income:
Interest 4,117,585 3,025,345
Dividends 4,684,557 6,710,019
Other -- 60,326
------------ -----------
Total investment income 8,802,142 9,795,690
------------ -----------
Net appreciation of investments:
Realized 10,784,564 29,818,045
Unrealized 12,649,204 25,090,967
------------ -----------
Net realized and unrealized appreciation
of investments 23,433,768 54,909,012
------------ -----------
Total additions 100,382,552 146,797,039
Deductions:
Benefit payments 53,308,582 21,932,376
Administrative expenses 2,882,380 1,639,368
Refund of excess contributions 2,038,960 3,832,568
------------ -----------
Total deductions 58,229,922 27,404,312
------------ -----------
Increase in net assets available for plan benefits 42,152,630 119,392,727
Net assets available for plan benefits:
Beginning of year 419,011,766 299,619,039
------------ -----------
End of year $461,164,396 419,011,766
============ ===========
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 8
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(1) DESCRIPTION OF THE PLAN
The following description of the PhyCor, Inc. Savings and Profit
Sharing Plan (the Plan) provides only general information. Participants
should refer to the Plan agreement for a more complete description of
the Plan's provisions.
(A) GENERAL
The Plan is a defined contribution retirement income plan
covering most full-time employees and certain part-time
employees of PhyCor, Inc. (the Sponsor) or its subsidiaries
who have completed one year of service. Certain physicians and
other employees at medical clinics operated by the Sponsor are
also eligible (Participating Physicians). Participating
Physician contributions are either made by the participating
physician group or individually. The Plan became effective
January 1, 1989 and is subject to and is believed to comply
with the provisions of the Employee Retirement Income Security
Act of 1974 (ERISA).
(B) PLAN ADMINISTRATION
The Northern Trust Company (Northern Trust) replaced Equitable
Trust Company as Plan Trustee effective April 1, 1997.
Individual participant accounts are maintained by Northern
Trust Retirement Consulting, Inc. based upon information
provided by the Sponsor. Contributions are paid into a trust
administered by Northern Trust.
The Plan provides that all necessary expenses of the Plan may
be paid by the Sponsor or out of the assets of the Plan. As
allowed by the Plan, such expenses reduce the investment
income allocated to the respective separate investment
accounts.
(C) CONTRIBUTIONS
Participants may make pre-tax contributions ranging from 1% to
15% of the first $160,000 of their annual compensation into
the Plan subject to limitations set forth in the Internal
Revenue Code (IRC) of 1986. All participant contributions are
100% vested and nonforfeitable.
(Continued)
8
<PAGE> 9
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 1998 and 1997
The Sponsor and Participating Physicians may make
discretionary profit sharing contributions. First, any profit
sharing contribution is allocated to active participants on
the basis of a participant's total compensation, up to 3% of
compensation. Second, any remaining amount will be allocated
based on a participant's compensation in excess of the FICA
taxable wage base in proportion to the total of such
compensation for all participants who are actively employed at
the end of the plan year. Such amount is limited to the lesser
of 10% of the excess compensation or the maximum permitted
under the IRC. Finally, any remaining amount will be allocated
to any participant who has attained age forty-one based on the
participant's compensation in excess of the FICA taxable wage
base in proportion to the total of such compensation, limited
to the maximum permitted under the IRC. Profit sharing
contributions made by the sponsor along with related
investment income are subject to the following vesting
schedule:
<TABLE>
<CAPTION>
YEARS OF SERVICE VESTING PERCENTAGE
------------------------------------------------------------------------------------
<S> <C>
Less than 2 years 0%
2 20%
3 40%
4 60%
5 80%
6 100%
</TABLE>
In the event of retirement (on or after the normal retirement
date), death, or disability, a participant becomes 100% vested
in all amounts credited to the participant's account.
In addition, the Sponsor and Participating Physicians may
make, at their discretion, a contribution of up to 2% of
compensation for all employees eligible to participate in the
Plan at any time during the year. This contribution, referred
to as a nonelective contribution, is allocated on the basis of
each eligible employee's compensation in proportion to the
total of eligible employees' compensation and is fully vested
when made.
(D) INVESTMENT OPTIONS
Contributions to the Plan are deposited at the participant's
direction in one or more of the following Northern Trust
investment funds:
CONSERVATIVE LIFESTYLE PORTFOLIO: This is a
moderately conservative fund which invests in a
combination of other "core" investment funds offered
through the Plan. The fund is composed of five of the
Plan's investment options which include the Stable
Value, Core Fixed Income, Value, Growth, and Foreign
funds.
(Continued)
9
<PAGE> 10
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 1998 and 1997
MODERATE LIFESTYLE PORTFOLIO: This is a moderately
aggressive fund which invests in a combination of
other "core" investment funds offered through the
Plan. The fund is composed of six of the Plan's
investment options which include the Stable Value,
Core Fixed Income, Value, Growth, Foreign and
Aggressive Equity funds.
AGGRESSIVE LIFESTYLE PORTFOLIO: This is an aggressive
growth oriented fund which invests in a combination
of other "core" investment funds offered through the
Plan. The fund is composed of four of the Plan's
investment options which include the Value, Growth,
Foreign and Aggressive Equity funds.
STABLE VALUE FUND: This fund invests primarily in
U.S. Treasury and agency securities, guaranteed
investment contracts and asset backed securities.
CORE FIXED INCOME FUND: This fund invests primarily
in bonds of U.S. and foreign companies and U.S.
Treasury securities.
INDEX FUND: This fund invests primarily in common
stock of the companies listed on the S&P 500.
Additionally, the fund invests in index futures.
VALUE FUND: This fund invests primarily in the common
stock of mid-to-large sized companies considered to
be under-valued.
GROWTH FUND: This fund invests primarily in the
common stock of mid-to-large-sized U.S. companies
that are believed to have potential for significant
growth.
FOREIGN FUND: This fund invests primarily in stocks,
bonds, and money market instruments of companies
located outside the U.S.
AGGRESSIVE EQUITY FUND: This fund invests primarily
in the common stock of small-to-medium-sized
companies which are believed to have the potential
for significant capital appreciation and strong
growth earnings.
PHYCOR STOCK FUND: This fund invests primarily in the
common stock of the Plan sponsor.
(E) FUNDING POLICY
The Plan provides that all employee contributions are funded
as soon as practicable, no later than the date required by
applicable Department of Labor (DOL) regulations. The
Participating Physicians' contributions are funded in
accordance with Internal Revenue Service (IRS) and DOL
regulations. Employer contributions are funded no later than
September 15 of the year following the year the contribution
is accrued.
(Continued)
10
<PAGE> 11
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 1998 and 1997
The DOL is currently conducting an investigation of the
administration of the Plan primarily related to timing of
participant contributions. The Sponsor does not believe that
such investigation will have a material impact on the Plan's
financial position or results of operations.
(F) PLAN EARNINGS AND FORFEITURES
Each participant's account is credited with an allocation of
Plan earnings daily. Forfeitures, which amounted to
approximately $2,584,000 and $43,000 in 1998 and 1997,
respectively, reduce the employer's contributions in the year
in which the forfeitures arise.
Any dividends or other distributions on common stock of the
participating employer in the PhyCor stock fund are allocated
to each participant's account based on the value of the
participant's account balance as of the allocation date.
(G) BENEFIT PAYMENTS AND WITHDRAWALS
Upon termination of employment for reasons other than
retirement (on or after the normal retirement date), death, or
disability, participants are entitled to receive the vested
balance of their account as of the day preceding the
distribution.
The distribution of benefit payments normally begins within 60
days following the close of the plan year in which the
participant attains his normal retirement age, or if the
participant elects, not later than age 70 1/2. The participant
may elect to receive benefits in the form of a lump-sum
distribution, or monthly installments over a period not to
exceed the participant's remaining life expectancy.
(H) LOANS TO PARTICIPANTS
Participants may borrow from their account a minimum of $1,000
up to a maximum equal to the lesser of $50,000 or 50% of their
vested account balance. Loan transactions are treated as a
transfer between the individual investment funds and the
Participant Loan fund. Loan terms range from a minimum of 1
year up to a maximum of 5 years. The loans are secured by the
balance in the participant's account and bear interest at a
rate equal to the prime rate, as of the first of the month in
which the loan application is made, plus 1.0%. Principal and
interest is paid ratably through monthly payroll deductions.
(Continued)
11
<PAGE> 12
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(I) TERMINATION
Although it has not expressed any intent to do so, the Sponsor
has the right to terminate the Plan at any time. In the event
of termination of the Plan, the administrator will distribute
the Plan assets, after payment of expenses, to or on behalf of
participants in proportion to the amount credited to the
account of each participant.
(J) FEDERAL INCOME TAXES
The Plan obtained its latest determination letter on October
1, 1998, in which the IRS stated that the Plan, as then
designed, was in compliance with the applicable requirements
of the IRC. The Plan has been amended since receiving the
determination letter. However, the Plan Administrator and the
Plan's legal counsel believe that the plan is currently
designed and being operated in compliance with the applicable
requirements of the IRC. Therefore, no provision for income
taxes has been included in the Plan's financial statements.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(A) BASIS OF PRESENTATION
The accompanying financial statements have been prepared on
the accrual basis of accounting.
(B) INVESTMENT VALUATION AND INCOME RECOGNITION
Generally, the Plan's investments are stated at fair value.
The fair value of marketable equity and debt securities is
based upon quotations obtained from national securities
exchanges; where investments are not listed on an exchange,
quotations are obtained from brokerage firms. Units of common
trust funds, mutual funds, life insurance policies, and
annuities are valued at the unit value of the fund or policy
at the valuation date. Loans to participants are valued at
cost which approximates fair value. Purchase and sales of
investment securities are recorded on a trade-date basis. The
average cost method is used in determining the cost of
investments sold.
(C) USE OF ESTIMATES
The preparation of financial statements in conformity with
generally accepted accounting principles requires the Plan
Administrator to make estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of
the financial statements and the reported amounts of related
changes in net assets available for benefits during the
reporting period. Actual results could differ from those
estimates.
(Continued)
12
<PAGE> 13
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(3) ASSETS HELD BY CUSTODIAN
The Plan permits participants to direct the investment of their
accounts. The investment assets held in segregated accounts totaled
$42,536,856 and $31,820,594 at December 31, 1998 and 1997,
respectively. Such accounts are credited only with their respective
investment earnings or losses and do not share in the investment
earnings of other assets of the Plan. Net investment income on
self-directed accounts totaled $67,909 and $1,471,503 for 1998 and
1997, respectively.
Net realized and unrealized appreciation (depreciation) in the fair
value of investments during 1998 and 1997 was attributable to:
<TABLE>
<CAPTION>
1998 1997
------------ -----------
<S> <C> <C>
Common stock $ 15,461,278 46,131,302
Mutual funds 18,722,223 9,753,156
Securities of participating employer (12,213,099) 854,753
Other 1,463,366 (1,830,199)
------------ -----------
$ 23,433,768 54,909,012
============ ===========
</TABLE>
The fair value of the following individual investments represent 5% or
more of the Plan's net assets at December 31, 1998 and 1997:
<TABLE>
<CAPTION>
1998 1997
------------ ----------
<S> <C> <C>
Neuberger & Berman Partner Trust Fund $ 38,637,228 42,509,923
Collective Stable Asset Fund 40,600,422 31,670,307
MFS Research Fund 38,129,212 29,259,003
Janus Income Capital Fund 34,232,467 24,700,633
SoGen Overseas Fund 26,270,402 25,612,774
Franklin Strategic Small Cap Growth Fund 21,718,447 16,131,961
Northern Institutional Bond Portfolio 50,523,661 41,801,804
</TABLE>
(4) REFUNDABLE CONTRIBUTIONS
Refundable contributions as of December 31, 1998 and 1997, consist of
$2,038,960 and $3,782,653, respectively, of excess contributions and
earnings. These amounts were refunded in 1999 and 1998, respectively.
(Continued)
13
<PAGE> 14
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Note to Financial Statements
December 31, 1998 and 1997
(5) INVESTMENT OPTIONS
The following is a summary of net assets available for plan benefits as of
December 31, 1998 allocated among the investment alternatives:
<TABLE>
<CAPTION>
CONSERVATIVE MODERATE AGGRESSIVE STABLE CORE FIXED
LIFESTYLE LIFESTYLE LIFESTYLE VALUE INCOME
ASSETS PORTFOLIO PORTFOLIO PORTFOLIO FUND FUND
----------- ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Assets held by custodian, at fair value:
Money market funds $ 100,565 3,165,113 980,042 -- 550,219
Government securities -- -- -- -- --
Mutual funds and common trust funds 5,760,237 108,027,282 22,120,020 15,074,037 24,012,934
Corporate bonds and notes -- -- -- -- --
Common stock 348,801 27,938,529 10,467,323 -- --
Investments in securities of
participating employer -- -- -- -- --
Preferred stock -- -- -- -- --
Guaranteed insurance contracts 284 2,980 -- -- 2,957
Life insurance policies and annuities -- -- -- -- --
Loans to participants -- -- -- -- --
Limited partnerships and real estate 10,400 498,909 187,459 -- --
----------- ------------ ----------- ----------- -----------
Total investments 6,220,287 139,632,813 33,754,844 15,074,037 24,566,110
Accrued investment income 487 17,728 6,644 -- 86
Cash -- 109,233 40,748 -- --
----------- ------------ ----------- ----------- -----------
Total assets held by custodians 6,220,774 139,759,774 33,802,236 15,074,037 24,566,196
----------- ------------ ----------- ----------- -----------
Contributions receivable:
Employees and participating
physicians 24,928 253,310 134,129 17,909 21,919
Employer 102,890 2,813,169 713,775 148,228 197,013
----------- ------------ ----------- ----------- -----------
Total contributions receivable 127,818 3,066,479 847,904 166,137 218,932
----------- ------------ ----------- ----------- -----------
Total assets 6,348,592 142,826,253 34,650,140 15,240,174 24,785,128
LIABILITIES
Refundable contributions,
including investment income (22,469) (517,795) (266,907) (61,119) (180,366)
Accrued administrative fees (13,177) (307,688) (76,566) (33,420) (47,064)
Other liabilities -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Net assets available for
plan benefits $ 6,312,946 142,000,770 34,306,667 15,145,635 24,557,698
=========== ============ =========== =========== ===========
<CAPTION>
INDEX VALUE
FUND FUND
----------- -----------
<S> <C> <C>
Assets held by custodian, at fair value:
Money market funds -- 4,413,319
Government securities -- --
Mutual funds and common trust funds 15,104,962 26,064,089
Corporate bonds and notes -- --
Common stock -- 32,253,438
Investments in securities of
participating employer -- --
Preferred stock -- --
Guaranteed insurance contracts -- --
Life insurance policies and annuities -- --
Loans to participants -- --
Limited partnerships and real estate -- 961,789
----------- -----------
Total investments 15,104,962 63,692,635
Accrued investment income -- 44,527
Cash -- --
----------- -----------
Total assets held by custodians 15,104,962 63,737,162
----------- -----------
Contributions receivable:
Employees and participating
physicians 51,097 66,141
Employer 431,376 670,629
----------- -----------
Total contributions receivable 482,473 736,770
----------- -----------
Total assets 15,587,435 64,473,932
LIABILITIES
Refundable contributions,
including investment income (90,156) (301,747)
Accrued administrative fees (31,795) (155,920)
Other liabilities -- --
----------- -----------
Net assets available for
plan benefits 15,465,484 64,016,265
=========== ===========
</TABLE>
(Continued)
14
<PAGE> 15
<TABLE>
<CAPTION>
AGGRESSIVE PHYCOR
GROWTH FOREIGN EQUITY STOCK PARTICIPANT SELF
FUND FUND FUND FUND LOANS DIRECTED TOTAL
- ----------- ----------- ----------- ---------- ---------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
-- -- 2,370,927 834,213 -- 27,114 12,441,512
-- -- -- -- -- 8,297,190 8,297,190
39,460,253 13,591,634 13,270,338 -- -- 18,917,529 301,403,315
-- -- -- -- -- 248,244 248,244
2,529 -- 36,432,804 -- -- 13,471,562 120,914,986
-- -- -- 5,859,595 -- -- 5,859,595
-- -- -- -- -- 147,925 147,925
-- -- -- -- -- -- 6,221
-- -- -- -- -- 1,029,334 1,029,334
-- -- -- -- 3,675,194 -- 3,675,194
-- -- 365,694 -- -- 396,262 2,420,513
- ----------- ----------- ----------- ---------- ---------- ----------- ------------
39,462,782 13,591,634 52,439,763 6,693,808 3,675,194 42,535,160 456,444,029
-- -- 5,159 1,178 -- 1,696 77,505
-- -- 235,591 -- -- -- 385,572
- ----------- ----------- ----------- ---------- ---------- ----------- ------------
39,462,782 13,591,634 52,680,513 6,694,986 3,675,194 42,536,856 456,907,106
- ----------- ----------- ----------- ---------- ---------- ----------- ------------
56,755 22,305 72,698 27,483 100,083 (373) 848,384
445,063 237,382 619,393 146,393 -- 519,448 7,044,759
- ----------- ----------- ----------- ---------- ---------- ----------- ------------
501,818 259,687 692,091 173,876 100,083 519,075 7,893,143
- ----------- ----------- ----------- ---------- ---------- ----------- ------------
39,964,600 13,851,321 53,372,604 6,868,862 3,775,277 43,055,931 464,800,249
(207,782) (78,012) (276,747) (35,860) -- -- (2,038,960)
(74,942) (26,617) (138,307) (618,162) (5,918) (67,317) (1,596,893)
-- -- -- -- -- -- --
- ----------- ----------- ----------- ---------- ---------- ----------- ------------
39,681,876 13,746,692 52,957,550 6,214,840 3,769,359 42,988,614 461,164,396
=========== =========== =========== ========== ========== =========== ============
</TABLE>
(Continued)
15
<PAGE> 16
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Note to Financial Statements
December 31, 1998 and 1997
The following is a summary of net assets available for plan benefits as of
December 31, 1997 allocated among the investment alternatives:
<TABLE>
<CAPTION>
CONSERVATIVE MODERATE AGGRESSIVE STABLE CORE FIXED
LIFESTYLE LIFESTYLE LIFESTYLE VALUE INCOME
ASSETS PORTFOLIO PORTFOLIO PORTFOLIO FUND FUND
---------- ----------- ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Assets held by custodian, at fair value:
Money market funds $ 112,723 3,219,640 388,629 68,841 1,788,066
Government securities -- -- -- -- --
Mutual funds and common trust funds 2,564,932 89,078,278 14,718,304 11,564,703 18,983,438
Corporate bonds and notes -- -- -- -- --
Common stock 153,881 25,636,882 7,358,304 -- --
Investments in securities of
participating employer -- -- -- -- --
Preferred stock -- -- -- -- --
Guaranteed insurance contracts 27,467 574,702 -- -- 500,906
Life insurance policies and annuities -- -- -- -- --
Loans to participants -- -- -- -- --
Limited partnerships and real estate 5,462 493,285 149,071 -- --
----------- ------------ ----------- ----------- -----------
Total investments 2,864,465 119,002,787 22,614,308 11,633,544 21,272,410
Accrued investment income 348 18,497 3,855 578 2,782
Cash -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Total assets held by custodians 2,864,813 119,021,284 22,618,163 11,634,122 21,275,192
----------- ------------ ----------- ----------- -----------
Contributions receivable:
Employees and participating
physicians 22,985 1,201,035 461,453 271,741 197,529
Employer 96,392 3,421,851 1,419,919 191,577 362,300
----------- ------------ ----------- ----------- -----------
Total contributions receivable 119,377 4,622,886 1,881,372 463,318 559,829
----------- ------------ ----------- ----------- -----------
Total assets 2,984,190 123,644,170 24,499,535 12,097,440 21,835,021
LIABILITIES
Refundable contributions,
including investment income (20,052) (1,030,427) (415,304) (165,603) (90,188)
Accrued administrative fees (142) (20,298) (5,658) (142) (233)
Other liabilities -- (29,112) (48,521) -- --
----------- ------------ ----------- ----------- -----------
Net assets available for
plan benefits $ 2,963,996 122,564,333 24,030,052 11,931,695 21,744,600
=========== ============ =========== =========== ===========
<CAPTION>
INDEX VALUE
FUND FUND
---------- -----------
<S> <C> <C>
Assets held by custodian, at fair value:
Money market funds 294,599 1,674,153
Government securities -- --
Mutual funds and common trust funds 4,571,345 30,998,306
Corporate bonds and notes -- --
Common stock -- 35,930,462
Investments in securities of
participating employer -- --
Preferred stock -- --
Guaranteed insurance contracts -- --
Life insurance policies and annuities -- --
Loans to participants -- --
Limited partnerships and real estate -- 1,284,896
---------- -----------
Total investments 4,865,944 69,887,817
Accrued investment income 603 34,204
Cash -- --
---------- -----------
Total assets held by custodians 4,866,547 69,922,021
---------- -----------
Contributions receivable:
Employees and participating
physicians 130,660 569,903
Employer 111,401 1,510,274
---------- -----------
Total contributions receivable 242,061 2,080,177
---------- -----------
Total assets 5,108,608 72,002,198
LIABILITIES
Refundable contributions,
including investment income (69,631) (713,085)
Accrued administrative fees (44) (26,065)
Other liabilities -- --
---------- -----------
Net assets available for
plan benefits 5,038,933 71,263,048
========== ===========
</TABLE>
(Continued)
16
<PAGE> 17
<TABLE>
<CAPTION>
AGGRESSIVE PHYCOR
GROWTH FOREIGN EQUITY STOCK PARTICIPANT SELF
FUND FUND FUND FUND LOANS DIRECTED TOTAL
- ----------- ----------- ----------- ----------- --------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
1,014,994 214,293 1,957,257 1,271,630 -- 9,198,605 21,203,430
-- -- -- -- -- 1,728,830 1,728,830
28,477,414 15,998,792 11,275,431 -- -- 11,972,887 240,203,830
2,860 -- -- -- -- 211,999 214,859
-- -- 45,863,703 -- -- 6,933,452 121,876,684
-- -- -- 16,273,953 -- -- 16,273,953
-- -- -- -- -- 144,034 144,034
-- -- -- -- -- -- 1,103,075
-- -- -- -- -- 1,184,686 1,184,686
-- -- -- -- 3,351,995 -- 3,351,995
-- -- 395,648 -- -- 435,171 2,763,533
- ----------- ----------- ----------- ----------- --------- ---------- ------------
29,495,268 16,213,085 59,492,039 17,545,583 3,351,995 31,809,664 410,048,909
2,077 -- 7,933 1,194 -- 9,407 81,478
-- -- -- -- -- 1,523 1,523
- ----------- ----------- ----------- ----------- --------- ---------- ------------
29,497,345 16,213,085 59,499,972 17,546,777 3,351,995 31,820,594 410,131,910
- ----------- ----------- ----------- ----------- --------- ---------- ------------
251,503 56,804 625,980 182,878 -- 188,600 4,161,071
336,832 531,232 552,514 226,977 -- 23,901 8,785,170
- ----------- ----------- ----------- ----------- --------- ---------- ------------
588,335 588,036 1,178,494 409,855 -- 212,501 12,946,241
- ----------- ----------- ----------- ----------- --------- ---------- ------------
30,085,680 16,801,121 60,678,466 17,956,632 3,351,995 32,033,095 423,078,151
(290,371) (167,011) (600,676) (220,305) -- -- (3,782,653)
(329) (189) (35,605) (944) -- -- (89,649)
-- -- (116,450) -- -- -- (194,083)
- ----------- ----------- ----------- ----------- --------- ---------- ------------
29,794,980 16,633,921 59,925,735 17,735,383 3,351,995 32,033,095 419,011,766
=========== =========== =========== =========== ========= ========== ============
</TABLE>
(Continued)
17
<PAGE> 18
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Note to Financial Statements
December 31, 1998 and 1997
The following is a summary of the changes in net assets available for plan
benefits for the year ended December 31, 1998 allocated among the investment
alternatives:
<TABLE>
<CAPTION>
--------------------------------------------------------------
STABLE
CONSERVATIVE MODERATE AGGRESSIVE VALUE
PORTFOLIO PORTFOLIO PORTFOLIO FUND
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Additions:
Contributions:
Employees and
participating physicians $ 519,770 8,879,272 4,783,118 302,022
Employer 732,467 16,317,164 4,785,032 646,316
Rollovers and transfers received
from other plans 16,587 370,102 192,837 4,003
----------- ----------- ----------- -----------
Total contributions 1,268,824 25,566,538 9,760,987 952,341
----------- ----------- ----------- -----------
Investment income:
Interest 157,930 1,719,440 29,266 14
Dividends 57,830 1,766,419 669,189 --
Other -- -- -- --
----------- ----------- ----------- -----------
Total investment income 215,760 3,485,859 698,455 14
----------- ----------- ----------- -----------
Net appreciation (depreciation) of investments:
Realized 245,385 3,848,644 823,580 346,211
Unrealized 44,546 2,685,653 897,318 529,684
----------- ----------- ----------- -----------
Net realized and unrealized
appreciation (depreciation)
of investments 289,931 6,534,297 1,720,898 875,895
----------- ----------- ----------- -----------
Total additions 1,774,515 35,586,694 12,180,340 1,828,250
Deductions:
Benefit payments 751,106 14,010,853 2,533,268 7,671,241
Administrative expenses 26,807 870,457 252,678 68,903
Refund of excess contributions 22,469 517,795 266,907 61,119
Transfer to (from) other funds (2,374,817) 751,152 (1,149,128) (9,186,953)
----------- ----------- ----------- -----------
Total deductions (1,574,435) 16,150,257 1,903,725 (1,385,690)
----------- ----------- ----------- -----------
Increase (decrease) in net assets
available for plan benefits 3,348,950 19,436,437 10,276,615 3,213,940
Net assets available for plan benefits:
Beginning of year 2,963,996 122,564,333 24,030,052 11,931,695
----------- ----------- ----------- -----------
End of year $ 6,312,946 142,000,770 34,306,667 15,145,635
=========== =========== =========== ===========
<CAPTION>
----------------------------
FIXED S & P
INCOME INDEX
FUND FUND
----------- -----------
<S> <C> <C>
Additions:
Contributions:
Employees and
participating physicians 653,234 1,150,834
Employer 829,591 1,399,097
Rollovers and transfers received
from other plans 13,421 426,698
----------- -----------
Total contributions 1,496,246 2,976,629
----------- -----------
Investment income:
Interest 1,625,779 299
Dividends -- --
Other -- --
----------- -----------
Total investment income 1,625,779 299
----------- -----------
Net appreciation (depreciation) of investments:
Realized 1,088,396 521,764
Unrealized (616,573) 1,808,831
----------- -----------
Net realized and unrealized
appreciation (depreciation)
of investments 471,823 2,330,595
----------- -----------
Total additions 3,593,848 5,307,523
Deductions:
Benefit payments 4,366,272 1,855,299
Administrative expenses 82,907 42,930
Refund of excess contributions 180,366 90,156
Transfer to (from) other funds (3,848,795) (7,107,413)
----------- -----------
Total deductions 780,750 (5,119,028)
----------- -----------
Increase (decrease) in net assets
available for plan benefits 2,813,098 10,426,551
Net assets available for plan benefits:
Beginning of year 21,744,600 5,038,933
----------- -----------
End of year 24,557,698 15,465,484
=========== ===========
</TABLE>
(Continued)
18
<PAGE> 19
<TABLE>
<CAPTION>
1998 INVESTMENT ALTERNATIVES
- -----------------------------------------------------------------------------------------------------------------------------
VALUE GROWTH FOREIGN AGGRESSIVE PHYCOR
EQUITY EQUITY EQUITY GROWTH EQUITY STOCK PARTICIPANT SELF
FUND FUND FUND FUND FUND LOANS DIRECTED TOTAL
- ----------- ---------- ----------- ----------- ----------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
3,264,997 2,066,931 1,097,100 3,236,917 1,164,790 -- 644,398 27,763,383
3,390,294 2,497,357 1,015,682 4,228,291 1,529,562 -- 1,625,836 38,996,689
65,891 119,435 25,370 41,820 5,752 -- 104,654 1,386,570
- ----------- ---------- ----------- ----------- ----------- ---------- ---------- -----------
6,721,182 4,683,723 2,138,152 7,507,028 2,700,104 -- 2,374,888 68,146,642
- ----------- ---------- ----------- ----------- ----------- ---------- ---------- -----------
170,960 145 84 36,060 21,694 355,202 712 4,117,585
959,709 490,699 812,910 (139,396) -- -- 67,197 4,684,557
- ----------- ---------- ----------- ----------- ----------- ---------- ---------- -----------
1,130,669 490,844 812,994 (103,336) 21,694 355,202 67,909 8,802,142
- ----------- ---------- ----------- ----------- ----------- ---------- ---------- -----------
4,139,031 1,947,960 391,060 (2,109,760) (508,942) -- 51,235 10,784,564
(1,373,639) 6,561,837 (1,430,757) 2,475,972 (11,704,151) -- 12,770,483 12,649,204
- ----------- ---------- ----------- ----------- ----------- ---------- ---------- -----------
2,765,392 8,509,797 (1,039,697) 366,212 (12,213,093) -- 12,821,718 23,433,768
- ----------- ---------- ----------- ----------- ----------- ---------- ---------- -----------
10,617,243 13,684,364 1,911,449 7,769,904 (9,491,295) 355,202 15,264,515 100,382,552
8,134,286 3,062,001 1,491,701 5,471,114 707,336 -- 3,254,105 53,308,582
657,860 103,949 41,085 698,180 32,418 -- 4,206 2,882,380
301,747 207,782 78,012 276,747 35,860 -- -- 2,038,960
8,770,133 423,736 3,187,880 8,292,048 1,253,634 (62,162) 1,050,685 --
- ----------- ---------- ----------- ----------- ----------- ---------- ---------- -----------
17,864,026 3,797,468 4,798,678 14,738,089 2,029,248 (62,162) 4,308,996 58,229,922
- ----------- ---------- ----------- ----------- ----------- ---------- ---------- -----------
(7,246,783) 9,886,896 (2,887,229) (6,968,185) (11,520,543) 417,364 10,955,519 42,152,630
71,263,048 29,794,980 16,633,921 59,925,735 17,735,383 3,351,995 32,033,095 419,011,766
- ----------- ---------- ----------- ----------- ----------- ---------- ---------- -----------
64,016,265 39,681,876 13,746,692 52,957,550 6,214,840 3,769,359 42,988,614 461,164,396
=========== ========== =========== =========== =========== ========== ========== ===========
</TABLE>
(Continued)
19
<PAGE> 20
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Note to Financial Statements
December 31, 1998 and 1997
The following is a summary of the changes in net assets available for plan
benefits for the year ended December 31, 1997 allocated among the investment
alternatives:
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------
GIC FIXED FIXED MANAGED BALANCED
FUND INCOME #1 INCOME #2 FUND FUND #1
----------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Additions:
Contributions:
Employees and
participating physicians $ 71,122 85,379 98,558 1,284,599 86,733
Employer 122,283 134,644 125,616 2,252,301 193,221
Rollovers and transfers received
from other plans 11,576 3,271 8,931 34,594 441
----------- ---------- ---------- ----------- -----------
Total contributions 204,981 223,294 233,105 3,571,494 280,395
----------- ---------- ---------- ----------- -----------
Investment income:
Interest 8,740 356,354 256,077 178,435 178,573
Dividends -- -- -- 35,598 38,618
Other -- -- -- -- --
----------- ---------- ---------- ----------- -----------
Total investment income 8,740 356,354 256,077 214,033 217,191
----------- ---------- ---------- ----------- -----------
Net appreciation (depreciation)
of investments:
Realized 109,824 (269,484) (57,845) (392,376) 109,217
Unrealized -- -- -- -- --
----------- ---------- ---------- ----------- -----------
Net realized and unrealized
appreciation (depreciation)
of investments 109,824 (269,484) (57,845) (392,376) 109,217
----------- ---------- ---------- ----------- -----------
Total additions 323,545 310,164 431,337 3,393,151 606,803
Deductions:
Benefit payments 127,444 102,282 19,831 1,738,148 9,065
Administrative expenses 12,117 35,877 11,305 141,464 23,957
Refund of excess contributions -- -- -- -- --
Transfer to (from) other funds 7,298,018 7,407,667 9,722,397 71,734,358 12,919,000
----------- ---------- ---------- ----------- -----------
Total deductions 7,437,579 7,545,826 9,753,533 73,613,970 12,952,022
----------- ---------- ---------- ----------- -----------
Increase (decrease) in net assets
available for plan benefits (7,114,034) (7,235,662) (9,322,196) (70,220,819) (12,345,219)
Net assets available for plan benefits:
Beginning of year 7,114,034 7,235,662 9,322,196 70,220,819 12,345,219
----------- ---------- ---------- ----------- -----------
End of year $ -- -- -- -- --
=========== ========== ========== =========== ===========
<CAPTION>
----------------------------
BALANCED VALUE
FUND #2 FUND
----------- -----------
<S> <C> <C>
Additions:
Contributions:
Employees and
participating physicians 250,965 566,243
Employer 313,084 762,070
Rollovers and transfers received
from other plans 36,712 33,358
----------- -----------
Total contributions 600,761 1,361,671
----------- -----------
Investment income:
Interest 1,843 43,107
Dividends 130,724 78,450
Other 3,055 129
----------- -----------
Total investment income 135,622 121,686
----------- -----------
Net appreciation (depreciation)
of investments:
Realized 431,377 853,423
Unrealized -- --
----------- -----------
Net realized and unrealized
appreciation (depreciation)
of investments 431,377 853,423
----------- -----------
Total additions 1,167,760 2,336,780
Deductions:
Benefit payments 819,502 174,250
Administrative expenses 7,985 80,869
Refund of excess contributions -- --
Transfer to (from) other funds 16,313,687 26,694,277
----------- -----------
Total deductions 17,141,174 26,949,396
----------- -----------
Increase (decrease) in net assets
available for plan benefits (15,973,414) (24,612,616)
Net assets available for plan benefits:
Beginning of year 15,973,414 24,612,616
----------- -----------
End of year -- --
=========== ===========
</TABLE>
(Continued)
20
<PAGE> 21
<TABLE>
<CAPTION>
1997 INVESTMENT ALTERNATIVES
- ---------------------------------------------------------------------------------------------------------------
AGGRESSIVE PHYCOR
EQUITY EQUITY FOREIGN GROWTH GROWTH STOCK PARTICIPANT
FUND #1 FUND #2 FUND FUND FUND FUND LOANS
- ---------- ----------- ----------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
99,662 238,566 327,176 447,750 989,843 525,838 --
114,500 264,312 443,987 566,277 1,417,621 700,320 --
3,550 35,712 36,577 29,034 43,118 39,207 62,542
- ---------- ----------- ----------- ----------- ----------- ----------- ----------
217,712 538,590 807,740 1,043,061 2,450,582 1,265,365 62,542
- ---------- ----------- ----------- ----------- ----------- ----------- ----------
1,193 3,362 666 8,111 10,398 1,063 42,619
22,646 -- -- 46,358 15,863 -- --
8,053 7,532 3,546 -- -- 4,025 11,128
- ---------- ----------- ----------- ----------- ----------- ----------- ----------
31,892 10,894 4,212 54,469 26,261 5,088 53,747
- ---------- ----------- ----------- ----------- ----------- ----------- ----------
326,266 301,991 548,841 (926,989) (2,967,445) (725,259) --
-- -- -- -- -- -- --
- ---------- ----------- ----------- ----------- ----------- ----------- ----------
326,266 301,991 548,841 (926,989) (2,967,445) (725,259) --
- ---------- ----------- ----------- ----------- ----------- ----------- ----------
575,870 851,475 1,360,793 170,541 (490,602) 545,194 116,289
64,253 113,450 108,749 186,009 597,704 113,963 35,674
24,762 6,394 12,978 50,594 167,278 16,164 7,275
- ---------- ----------- ----------- ----------- ----------- ----------- ----------
8,976,444 16,635,602 14,805,029 19,107,243 50,042,083 17,106,574 2,124,731
- ---------- ----------- ----------- ----------- ----------- ----------- ----------
9,065,459 16,755,446 14,926,756 19,343,846 50,807,065 17,236,701 2,167,680
- ---------- ----------- ----------- ----------- ----------- ----------- ----------
(8,489,589) (15,903,971) (13,565,963) (19,173,305) (51,297,667) (16,691,507) (2,051,391)
8,489,589 15,903,971 13,565,963 19,173,305 51,297,667 16,691,507 2,051,391
- ---------- ----------- ----------- ----------- ----------- ----------- ----------
-- -- -- -- -- -- --
========== =========== =========== =========== =========== =========== ==========
</TABLE>
(Continued)
21
<PAGE> 22
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Note to Financial Statements
December 31, 1998 and 1997
The following is a summary of the changes in net assets available for plan
benefits for the year ended December 31, 1997 allocated among the investment
alternatives:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
CONSERVATIVE MODERATE AGGRESSIVE STABLE
SELF LIFESTYLE LIFESTYLE LIFESTYLE VALUE
DIRECTED PORTFOLIO PORTFOLIO PORTFOLIO FUND
------------ ---------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
Additions:
Contributions:
Employees and
participating physicians $ 309,652 251,764 9,037,392 2,598,809 530,903
Employer 345,294 271,922 9,695,170 3,969,031 499,871
Rollovers and transfers received
from other plans 11,340 141,910 2,756,530 363,564 215,373
------------ ---------- ------------ ----------- -----------
Total contributions 666,286 665,596 21,489,092 6,931,404 1,246,147
------------ ---------- ------------ ----------- -----------
Investment income:
Interest 67,205 2,574 281,965 21,732 3,633
Dividends 265,934 69,227 2,440,786 443,668 32,870
Other -- -- -- -- --
------------ ---------- ------------ ----------- -----------
Total investment income 333,139 71,801 2,722,751 465,400 36,503
------------ ---------- ------------ ----------- -----------
Net appreciation (depreciation)
of investments:
Realized 97,613 98,305 7,864,976 2,238,239 40,602
Unrealized -- 65,996 5,516,132 1,447,109 59,330
------------ ---------- ------------ ----------- -----------
Net realized and unrealized
appreciation (depreciation)
of investments 97,613 164,301 13,381,108 3,685,348 99,932
------------ ---------- ------------ ----------- -----------
Total additions 1,097,038 901,698 37,592,951 11,082,152 1,382,582
Deductions:
Benefit payments 1,099,238 212,640 5,162,092 631,413 5,496,886
Administrative expenses 23,014 2,301 234,487 60,702 4,230
Refund of excess contributions -- 20,052 1,080,342 415,304 165,603
Transfer to (from) other funds 25,596,472 (2,297,291) (91,448,303) (14,055,319) (16,215,832)
------------ ---------- ------------ ----------- -----------
Total deductions 26,718,724 (2,062,298) (84,971,382) (12,947,900) (10,549,113)
------------ ---------- ------------ ----------- -----------
Increase (decrease) in net assets
available for plan benefits (25,621,686) 2,963,996 122,564,333 24,030,052 11,931,695
Net assets available for plan benefits:
Beginning of year 25,621,686 -- -- -- --
------------ ---------- ------------ ----------- -----------
End of year $ -- 2,963,996 122,564,333 24,030,052 11,931,695
============ ========== ============ =========== ===========
<CAPTION>
---------------------------
CORE FIXED
INCOME INDEX
FUND FUND
----------- ----------
<S> <C> <C>
Additions:
Contributions:
Employees and
participating physicians 718,631 279,270
Employer 863,198 334,613
Rollovers and transfers received
from other plans 2,748,508 459,029
----------- ----------
Total contributions 4,330,337 1,072,912
----------- ----------
Investment income:
Interest 26,770 3,651
Dividends 849,647 --
Other -- --
----------- ----------
Total investment income 876,417 3,651
----------- ----------
Net appreciation (depreciation)
of investments:
Realized 303,964 2,527
Unrealized 377,563 203,146
----------- ----------
Net realized and unrealized
appreciation (depreciation)
of investments 681,527 205,673
----------- ----------
Total additions 5,888,281 1,282,236
Deductions:
Benefit payments 1,651,512 7,218
Administrative expenses 12,910 386
Refund of excess contributions 90,188 69,631
Transfer to (from) other funds (17,610,929) (3,833,932)
----------- ----------
Total deductions (15,856,319) (3,756,697)
----------- ----------
Increase (decrease) in net assets
available for plan benefits 21,744,600 5,038,933
Net assets available for plan benefits:
Beginning of year -- --
----------- ----------
End of year 21,744,600 5,038,933
=========== ==========
</TABLE>
(Continued)
22
<PAGE> 23
<TABLE>
<CAPTION>
1997 INVESTMENT ALTERNATIVES
- ---------------------------------------------------------------------------------------------------------------------------------
AGGRESSIVE PHYCOR
VALUE GROWTH FOREIGN EQUITY STOCK PARTICIPANT SELF
FUND FUND FUND FUND FUND LOANS DIRECTED TOTAL
- ----------- ----------- ----------- ----------- ----------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
2,857,000 1,332,719 774,120 2,929,425 1,277,762 -- 813,287 28,783,168
4,135,965 1,654,174 1,410,635 3,282,851 1,565,818 -- 628,662 36,067,440
1,375,710 2,302,395 1,604,999 3,313,087 617,670 -- 952,991 17,241,729
- ----------- ----------- ----------- ----------- ----------- ---------- ----------- -----------
8,368,675 5,289,288 3,789,754 9,525,363 3,461,250 -- 2,394,940 82,092,337
- ----------- ----------- ----------- ----------- ----------- ---------- ----------- -----------
169,705 15,577 6,168 47,228 7,228 143,004 1,138,364 3,025,345
375,780 548,069 802,814 512,967 -- -- -- 6,710,019
-- -- -- -- 22,858 -- -- 60,326
- ----------- ----------- ----------- ----------- ----------- ---------- ----------- -----------
545,485 563,646 808,982 560,195 30,086 143,004 1,138,364 9,795,690
- ----------- ----------- ----------- ----------- ----------- ---------- ----------- -----------
7,689,046 2,769,611 1,016,747 7,292,371 1,580,012 -- 1,482,491 29,818,045
11,075,237 1,598,580 (1,669,866) 6,416,474 -- -- 1,266 25,090,967
- ----------- ----------- ----------- ----------- ----------- ---------- ----------- -----------
18,764,283 4,368,191 (653,119) 13,708,845 1,580,012 -- 1,483,757 54,909,012
- ----------- ----------- ----------- ----------- ----------- ---------- ----------- -----------
27,678,443 10,221,125 3,945,617 23,794,403 5,071,348 143,004 5,017,061 146,797,039
1,007,026 356,554 236,226 1,028,760 473,553 -- 358,934 21,932,376
263,414 7,754 4,947 377,994 5,933 -- 42,277 1,639,368
713,085 290,371 167,011 600,676 220,305 -- -- 3,832,568
(45,568,130) (20,228,534) (13,096,488) (38,138,762) (13,363,826) (3,208,991) (27,417,245) --
- ----------- ----------- ----------- ----------- ----------- ---------- ----------- -----------
(43,584,605) (19,573,855) (12,688,304) (36,131,332) (12,664,035) (3,208,991) (27,016,034) 27,404,312
- ----------- ----------- ----------- ----------- ----------- ---------- ----------- -----------
71,263,048 29,794,980 16,633,921 59,925,735 17,735,383 3,351,995 32,033,095 119,392,727
-- -- -- -- -- -- -- 299,619,039
- ----------- ----------- ----------- ----------- ----------- ---------- ----------- -----------
71,263,048 29,794,980 16,633,921 59,925,735 17,735,383 3,351,995 32,033,095 419,011,766
=========== =========== =========== =========== =========== ========== =========== ===========
</TABLE>
23
<PAGE> 24
SCHEDULE 1
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(a) Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(C)
(B) DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE,
BORROWER, LESSOR, RATE OF INTEREST, COLLATERAL
(A) OR SIMILAR PARTY PAR OR MATURITY VALUE
- ----- ----------------------------- ----------------------------
<S> <C> <C>
MONEY MARKET FUNDS
Collective Short Term Investment Fund
Schwab Total Bond Market Index Fund
TOTAL
U.S. GOVERNMENT SECURITIES
Certificate of Interest Accrual on Treasury Securities Due 11/15/1999 114,000 Par Value
Certificate of Interest Accrual on Treasury Securities Due 5/15/1999 62,000 Par Value
FHLMC 7.36 Debenture Due 8/28/2007 100,000 Par Value
FNMA 7.50% Due 2/11/02 45,000 Par Value
Tennessee Valley Authority 0.000% Due 11/1/2025 200,000 Par Value
US Treasury Bill Due 1/7/1999 400,000 Par Value
US Treasury Bill Due 6/24/1999 400,000 Par Value
US Treasury Note 6.250% Due 5/31/2000 20,000 Par Value
US Treasury 5.375 Note Due 6/30/2000 400,000 Par Value
US Treasury 5.5 Note Due 12/31/2000 400,000 Par Value
US Treasury 5.625 Notes Due 12/31/99 400,000 Par Value
US Treasury 5.625 Note Due 10/31/99 200,000 Par Value
US Treasury 6.00 Bond Due 2/15/2026 20,000 Par Value
US Treasury 6.25 Bond Due 8/15/2023 20,000 Par Value
US Treasury Note 5.875 Bond Due 11/30/2001 400,000 Par Value
US Treasury Securities Bond 6.625% Due 2/15/2027 25,000 Par Value
US Treasury Securities Note 6.250% Due 2/15/2007 25,000 Par Value
US Treasury Securities Note 6.250% Due 3/31/1999 25,000 Par Value
US Treasury Securities Note 6.500% Due 5/15/2005 25,000 Par Value
US Treasury Securities Note 6.500% Due 8/15/2005 20,000 Par Value
US Treasury Securities Note 6.625% Due 3/31/2002 25,000 Par Value
US Treasury Securities Note 6.750% Due 4/30/2000 35,000 Par Value
US Treasury Securities Note 6.875% Due 5/15/2006 20,000 Par Value
US Treasury 7.0 Note Due 7/15/2006 20,000 Par Value
US Treasury 6.125 Note Due 8/15/2007 20,000 Par Value
US Treasury Ser B-2002 Note 6.375% Due 8/15/2002 30,000 Par Value
US Treasury Ser G-1999 6.375% Due 7/15/99 15,000 Par Value
US Treasury Sec Stripped Int Pymt Due 11/1 25,000 Par Value
US Treasury Stripped Secs Int Generic Int Pmt Due 8/15 37,000 Par Value
US Treasury Strips 0.000% Due 11/15/2000 20,000 Par Value
US Treasury Strips 0.000% Due 11/15/2005 100,000 Par Value
US Treasury Strips 0.000% Due 8/15/2001 225,000 Par Value
US Treasury Strips 0.000% Due 8/15/2002 16,000 Par Value
US Treasury Strips 0.000% Due 8/15/2003 17,000 Par Value
US Treasury Strips 0.000% Due 8/15/2004 18,000 Par Value
<CAPTION>
(B)
IDENTITY OF ISSUE, (E)
BORROWER, LESSOR, (D) CURRENT
(A) OR SIMILAR PARTY COST VALUE
- ----- ----------------------------- ---------- ----------
<S> <C> <C> <C>
MONEY MARKET FUNDS
Collective Short Term Investment Fund 12,414,667 12,414,667
Schwab Total Bond Market Index Fund 27,587 26,845
---------- ----------
TOTAL 12,442,254 12,441,512
---------- ----------
U.S. GOVERNMENT SECURITIES
Certificate of Interest Accrual on Treasury Securities Due 11/15/1999 92,597 109,572
Certificate of Interest Accrual on Treasury Securities Due 5/15/1999 51,791 60,961
FHLMC 7.36 Debenture Due 8/28/2007 22,380 2,517,100
FNMA 7.50% Due 2/11/02 46,174 48,052
Tennessee Valley Authority 0.000% Due 11/1/2025 1,139,320 1,564,760
US Treasury Bill Due 1/7/1999 390,014 399,680
US Treasury Bill Due 6/24/1999 380,624 391,500
US Treasury Note 6.250% Due 5/31/2000 20,134 20,425
US Treasury 5.375 Note Due 6/30/2000 400,109 404,125
US Treasury 5.5 Note Due 12/31/2000 400,656 406,688
US Treasury 5.625 Notes Due 12/31/99 401,380 403,875
US Treasury 5.625 Note Due 10/31/99 200,375 201,563
US Treasury 6.00 Bond Due 2/15/2026 20,234 21,816
US Treasury 6.25 Bond Due 8/15/2023 20,866 22,375
US Treasury Note 5.875 Bond Due 11/30/2001 404,812 413,500
US Treasury Securities Bond 6.625% Due 2/15/2027 25,077 29,570
US Treasury Securities Note 6.250% Due 2/15/2007 24,852 27,422
US Treasury Securities Note 6.250% Due 3/31/1999 25,058 25,098
US Treasury Securities Note 6.500% Due 5/15/2005 25,278 27,399
US Treasury Securities Note 6.500% Due 8/15/2005 21,100 21,981
US Treasury Securities Note 6.625% Due 3/31/2002 25,480 26,426
US Treasury Securities Note 6.750% Due 4/30/2000 35,186 35,919
US Treasury Securities Note 6.875% Due 5/15/2006 20,700 22,612
US Treasury 7.0 Note Due 7/15/2006 21,802 22,772
US Treasury 6.125 Note Due 8/15/2007 20,771 21,844
US Treasury Ser B-2002 Note 6.375% Due 8/15/2002 31,226 31,645
US Treasury Ser G-1999 6.375% Due 7/15/99 15,014 15,141
US Treasury Sec Stripped Int Pymt Due 11/1 16,180 19,941
US Treasury Stripped Secs Int Generic Int Pmt Due 8/15 18,292 20,383
US Treasury Strips 0.000% Due 11/15/2000 15,463 18,378
US Treasury Strips 0.000% Due 11/15/2005 57,219 72,146
US Treasury Strips 0.000% Due 8/15/2001 200,279 199,575
US Treasury Strips 0.000% Due 8/15/2002 12,125 13,522
US Treasury Strips 0.000% Due 8/15/2003 12,136 13,723
US Treasury Strips 0.000% Due 8/15/2004 11,982 13,849
</TABLE>
See accompanying independent auditors' report.
24
<PAGE> 25
SCHEDULE 1
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(a) Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(C)
(B) DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE, (E)
BORROWER, LESSOR, RATE OF INTEREST, COLLATERAL (D) CURRENT
(A) OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
- ----- ----------------------------- ---------------------------- --------- ---------
<S> <C> <C> <C> <C>
U.S. GOVERNMENT SECURITIES
US Treasury Strips 0.000% Due 8/15/2005 135,000 Par Value 100,783 98,615
US Treasury Strips 0.000% Due 8/15/2008 188,000 Par Value 118,315 116,992
US Treasury Strips 0.000% Due 8/15/2009 35,000 Par Value 18,402 20,497
US Treasury Strips 0.000% Due 5/15/1999 195,000 Par Value 145,958 191,781
US Treasury Strips 0.000% Due 5/15/2003 250,000 Par Value 170,525 203,967
--------- ---------
TOTAL 5,180,669 8,297,190
--------- ---------
INTEREST IN REGISTERED INVESTMENT COMPANIES
Acorn Fund, Inc. 310 Shares 5,415 5,225
Advisors Inner Circle White Oak Growth Stock Fund 2,254 Shares 75,000 91,743
Alliance Portfolios 359 Shares 14,809 18,351
Amcap Fund 4,041 Shares 55,830 71,558
American Centy Govt. Income 1,031 Shares 10,999 11,020
American Centy International Bond Fund 106 Shares 1,334 1,324
American Centy Mut Funds 20th Century 178 Shares 5,146 4,839
American Centy Mut Funds 20th Ultra 660 Shares 21,769 22,050
American Centy Quant. Equity Growth 543 Shares 10,687 12,328
American Centy Quant. Equity Income & Growth 1,278 Shares 32,531 37,386
American Centy Target Mats 1,867 Shares 107,973 113,358
American Centy World Mutual Funds 20th Century Intl Growth 819 Shares 7,130 7,842
American Centy World Mut Funds 3,835 Shares 40,560 36,704
Artisan Fds 629 Shares 6,519 5,752
ASA Ltd Fund 951 Shares 20,366 14,802
Babson Value 23 Shares 1,068 1,059
Baron Asset Ben Int 3,752 Shares 183,333 189,629
Baron Asset Small Cap 1,200 Shares 12,023 12,648
Blackrock N. America Govt. Inc. 1,300 Shares 16,108 13,163
Blair William Growth Fund 2,169 Shares 32,996 38,985
Bond Fund of America 3,125 Shares 40,552 42,532
BT Investment Funds International Equity 13,213 Shares 302,725 319,493
Colonial Newport Tiger 371 Shares 5,166 2,883
Crabbe Huson Real Estate 1,067 Shares 14,000 11,211
DFA Invt Dimensions Group Real Estate Portfolio 8,715 Shares 110,523 105,715
DFA Invt Dimensions Group 1 year Fixed Income Portfolio 10,442 Shares 105,357 106,295
Dodge & Cox Stock Fund 233 Shares 23,104 21,167
Dreyfus S & P 500 Index Funds 1,065 Shares 30,388 38,761
Dreyfus Short Term 796 Shares 9,616 9,353
Eclipse Equity Fund 614 Shares 8,337 7,326
Europacific Growth Open End 5,603 Shares 132,961 159,136
Excelsior Value & Restructuring Fund 3,120 Shares 73,019 70,857
</TABLE>
See accompanying independent auditors' report.
25
<PAGE> 26
SCHEDULE 1
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(a) Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(C)
(B) DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE, (E)
BORROWER, LESSOR, RATE OF INTEREST, COLLATERAL (D) CURRENT
(A) OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
- ----- ----------------------------- ---------------------------- ---------- ----------
<S> <C> <C> <C> <C>
INTEREST IN REGISTERED INVESTMENT COMPANIES
Fasciano Fund 3,726 Shares 126,723 116,203
Fidelity Contrafund 1,532 Shares 66,294 86,977
Fidelity Fund Open End 1,816 Shares 56,376 66,647
Fidelity Invt Japan Small 516 Shares 5,526 3,739
Fidelity Mt.Vernon Emerging Growth 1,441 Shares 35,446 45,774
Fidelity Select Biotechnology Portfolio 983 Shares 35,283 39,090
Fidelity Select Energy Portfolio 1,929 Shares 53,947 27,913
Fidelity Select Financial Services Portfolio 290 Shares 27,896 28,638
Fidelity Select Electrs Portfolio 861 Shares 25,494 40,086
Fidelity Value Open End 1,103 Shares 50,650 51,120
Founders Balanced Fund 1,212 Shares 14,018 14,778
Franklin Strategic Small Cap Growth Fund 962,271 Shares 19,706,544 21,718,447
Gabelli Asset Fund 481 Shares 14,216 17,059
Gabelli Growth Fund 500 Shares 15,144 17,704
Gabelli Small Cap Open End 736 Shares 16,769 15,467
Gabelli Telecommunications Fund 335 Shares 5,407 5,571
Gam Fds Inc. 370 Shares 8,241 11,101
Hancock John BK & Thrift Opportunity 3,135 Shares 40,392 33,505
Hotchkis & Wiley Small Cap Fund 411 Shares 10,583 8,016
Hotchkis & Wiley International Fund 427 Shares 10,346 9,932
Hotchkis & Wiley Low Duration Fund 625 Shares 6,384 6,298
IDS Trust Inc. Collective Fund 29,301 Shares 1,257,123 1,411,598
Income Fund of America 2,378 Shares 34,997 41,230
Interactive Tech Value Fund 280 Shares 8,376 9,030
Invesco Income Hi Yield Fund 6,113 Shares 44,283 39,369
Invesco Specialty Worldwide Communications Fund 265 Shares 5,097 5,626
Invesco Strategic Portfolios 112 Shares 5,875 6,859
Janus Equity Income Fund 1,281 Shares 14,935 23,987
Janus Income Capital Fund 1,017,310 Shares 24,831,438 34,232,467
Janus Flexible Income Fund 4,780 Shares 46,557 47,557
Janus Growth and Income Fund 1,660 Shares 37,136 48,298
Janus High-Yield Fund 1,243 Shares 14,079 13,188
Janus Investment Balanced Fund 708 Shares 12,319 13,888
Janus Olympus Fund 2,030 Shares 30,156 55,987
Janus Overseas Fund 8,551 Shares 158,946 171,701
Janus SPL Situations Fund 1,158 Shares 17,888 20,158
Janus Twenty Fund 1,801 Shares 63,139 96,006
Janus Worldwide Fund 9,299 Shares 369,587 440,405
Kemper Total Return Fund 1,926 Shares 20,799 20,605
Lexington Gold Fund 130 Shares 450 393
Linder Investments Divided Fund 801 Shares 21,701 18,850
</TABLE>
See accompanying independent auditors' report.
26
<PAGE> 27
SCHEDULE 1
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(a) Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(C)
(B) DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE, (E)
BORROWER, LESSOR, RATE OF INTEREST, COLLATERAL (D) CURRENT
(A) OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
- ----- ----------------------------- ---------------------------- ---------- ----------
<S> <C> <C> <C> <C>
INTEREST IN REGISTERED INVESTMENT COMPANIES
Longleaf Partners Sh Ben Int Fund 1,554 Shares 38,865 37,893
Longleaf Partners Small Cap Fund 557 Shares 11,909 12,223
Loomis Sayles Bond Fund 14,169 Shares 184,718 169,321
Loomis Sayles Small Cap Growth Fund 699 Shares 7,890 7,273
Loomis Sayles Small Cap Retail Fund 421 Shares 8,635 7,643
MAS Fixed Income Portfolio 7,113 Shares 85,510 83,294
MAS Mid-Cap Value Portfolio 285 Shares 5,400 5,898
MAS Mid-Cap Growth Portfolio 274 Shares 5,070 5,855
MAS Pooled High Yield Fund 7,362 Shares 66,874 65,225
MFS Research Fund 1,516,072 Shares 31,698,716 38,129,212
MFS Total Return Fund 2,958 Shares 42,806 44,254
Midas Fund 2,333 Shares 3,500 3,523
Montgomery Select 50 Fund 10,145 Shares 192,118 194,074
Mutual Beacon Fund 803 Shares 9,383 10,536
Mutual Discovery Fund 648 Shares 10,673 11,189
Mutual Qualified Fund 1,257 Shares 23,828 20,688
Neuberger & Berman Equity Fund 501 Shares 7,854 7,235
Neuberger & Berman Partner Trust Fund 2,138,197 Shares 37,322,554 38,637,228
Neuberger & Berman Partners Equity Fund 1,929 Shares 51,844 49,179
New Perspective Income Fund 9,123 Shares 138,753 209,379
Nicholas II Inc. 319 Shares 9,656 11,498
Oakmark Harris Associates Trust Fund 2,764 Shares 105,749 99,003
PAPP America Abroad Fund 230 Shares 6,272 7,379
PBHG Growth Fund 280 Shares 6,916 7,149
PBHG Select Equity 248 Shares 5,183 6,176
Robertson Stephens Investment Trust Microcap Growth 551 Shares 9,075 7,864
Rowe Price Small Cap Value Fund 439 Shares 7,421 8,322
Rowe T. Price Blue Chip Growth Fund 636 Shares 15,348 19,447
Rowe T. Price European Fund 202 Shares 4,192 4,390
Rowe T. Price Growth & Income Fund 1,491 Shares 37,522 38,842
Rowe T. Price Growth Stock Fund 354 Shares 11,388 11,338
Rowe T. Price Health Science Fund 1,905 Shares 26,204 30,494
Rowe T. Price International Bond Fund 9,525 Shares 97,220 99,629
Rowe T. Price New ERA Fund 227 Shares 10,801 10,869
Royce Total Return Fund 6,920 Shares 55,000 52,315
Rydex URSA Fund 3,629 Shares 40,177 32,481
Rydex OTC Fund 2,196 Shares 88,275 90,821
Safeco Equity Fund 4,644 Shares 102,612 107,979
Safeco Growth Fund 79 Shares 1,806 1,799
Schwab 1000 Equity Fund 1,708 Shares 51,863 57,236
Schwab Charles Family Funds Value Advantage Money Fund 2,811,712 Shares 2,811,712 2,171,247
</TABLE>
See accompanying independent auditors' report.
27
<PAGE> 28
SCHEDULE 1
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(a) Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(C)
(B) DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE, (E)
BORROWER, LESSOR, RATE OF INTEREST, COLLATERAL (D) CURRENT
(A) OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
- ----- ----------------------------- ---------------------------- ---------- ----------
<S> <C> <C> <C> <C>
INTEREST IN REGISTERED INVESTMENT COMPANIES
Schwab Family Fund Money Market Fund 6,414,827 Shares 6,414,827 6,414,827
Schwab S&P 500 Fund 1,492 Shares 24,209 28,279
Scudder International Fund Greater Europe 5,541 Shares 137,208 147,005
Scudder International Fund Open End 2,750 Shares 142,497 133,924
Scudder Gold Fund 598 Shares 3,500 3,668
Scudder Portfolio High Yield Bond Fund 1,293 Shares 16,999 15,873
Scudder Sec Small Co. Value Fund 464 Shares 10,083 9,038
Selected Amer. Open End 1,451 Shares 40,858 45,214
Seligman Communications and Info. Fund 1,293 Shares 31,908 39,719
Small Cap World Fund 1,992 Shares 49,927 49,054
SoGen International Fund 6,422 Shares 172,260 147,907
SoGen Overseas Fund 2,347,668 Shares 30,529,562 26,270,402
Sound Shore Income Fund 90 Shares 2,601 2,671
Stein Roe Growth & Income Fund 383 Shares 8,101 9,948
Stein Roe Intermediate Bond Fund 2,470 Shares 22,089 21,959
Stein Roe Large Company Focus Fund 1,038 Shares 10,200 10,727
Stein Roe Young Investor Fund 3,011 Shares 76,418 80,515
Stratton Small Cap Yield 435 Shares 10,095 8,757
Strong Corp Bond Fund 468 Shares 5,269 5,263
Strong Government Securities Fund 544 Shares 5,804 5,850
Strong High Yield Bond Fund 3,010 Shares 36,219 33,295
Strong Schafer Value Fund 1,013 Shares 64,283 60,070
T Rowe Price Index Fund 338 Shares 10,084 11,273
Templeton Foreign Fund 1,906,519 Shares 19,208,464 15,995,694
Templeton Smaller Growth Fund 502 Shares 4,595 3,522
Torray Sh Ben Int. Fund 138 Shares 4,761 5,051
Transamerica Invs. Premier 624 Shares 8,763 13,992
Tuscarora Investment Trust Oak Value Fund 686 Shares 15,803 18,733
Tweedy Brown Global Income Fund 1,910 Shares 30,180 32,134
UAM Crescent Port Shares 162 Shares 2,569 2,408
Unified-First Lexington Balanced Fund 243,662 Shares 2,668,860 1,731,449
Van Eck Global Hard Asset Fund 367 Shares 4,934 3,796
Vanguard Equity Income Fund 11,032 Shares 254,283 272,831
Vanguard Fixed Income Hi Yield Corp Bond Fund 4,368 Shares 34,316 34,201
Vanguard Fixed Income Intermediate Term Corporate Portfolio 1,597 Shares 15,991 16,021
Vanguard Fixed Income Short Term Bond 9,441 Shares 99,420 102,335
Vanguard Index Bond Fund 3,234 Shares 33,299 33,218
Vanguard Index Trust - 500 Portfolio 254 Shares 18,486 28,939
Vanguard Index Growth Portfolio 617 Shares 17,334 19,543
Vanguard Index Total Stock Market 8,983 Shares 201,796 246,322
Vanguard Index Value Portfolio 225 Shares 5,166 5,076
</TABLE>
See accompanying independent auditors' report.
28
<PAGE> 29
SCHEDULE 1
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(a) Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(C)
(B) DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE, (E)
BORROWER, LESSOR, RATE OF INTEREST, COLLATERAL (D) CURRENT
(A) OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
- ----- ----------------------------- ---------------------------- ----------- -----------
<S> <C> <C> <C> <C>
INTEREST IN REGISTERED INVESTMENT COMPANIES
Vanguard Primecap Fund 109 Shares 3,149 5,182
Vanguard Quantitative Portfolios 204 Shares 6,250 6,280
Vanguard Specialized Energy Portfolio 1,158 Shares 30,366 21,324
Vanguard Star Growth Portfolio 49,625 Shares 531,055 797,649
Vanguard U.S. Growth Portfolio 3,462 Shares 80,213 129,779
Vanguard Windsor II Fund 6,744 Shares 168,667 201,308
Vanguard World Fund 2,991 Shares 47,817 56,135
Vontobel Eastern European Fund 569 Shares 9,155 4,633
Warburg Pincus Emerging Growth Fund 992 Shares 36,000 39,662
Warburg Pincus Fixed Income 1,033 Shares 10,712 10,697
Warburg Pincus Global Fixed Income Fund 8,437 Shares 87,639 89,433
Warburg Pincus Japan OTC Fund 586 Shares 5,327 3,779
Washington Mutual Investors Fund 10,466 Shares 246,624 365,350
Weitz Hickory Fund 2,327 Shares 75,224 72,096
Weitz Value Portfolio 383 Shares 10,422 11,147
Westwood Fund Equity Fund N/C MFO Gabelli 800 Shares 7,224 8,037
3rd Ave Fund 633 Shares 20,595 20,417
----------- -----------
TOTAL 184,095,656 195,236,573
----------- -----------
COMMON/COLLECTIVE TRUSTS
Scudder Invt Growth & Inc. Investment Trust 2,067 Units 60,559 54,390
Collective Daily Stock Index Fund 497,365 Units 13,092,986 14,104,963
Collective Stable Asset Fund 1,514,562 Units 38,331,365 40,600,422
Northern Institutional Bond Portfolio 2,418,557 Units 50,211,563 50,523,661
Harris Assoc. Investment Trust Oakmark Select Fund 1,003 Units 16,689 19,608
Harris Assoc. Investment Trust Oakmark Small Cap Fund 1,941 Units 25,169 28,665
HBR Capital Appreciation Fund 2,774 Units 89,499 105,385
HBR International Growth Fund 1,735 Units 28,889 33,817
Invesco Growth Fund 33,142 Units 204,763 214,096
Templeton Developing Markets 6,322 Units 65,374 64,991
UAM Heitman/PRA Real Estate Portfolio 12,247 Units 102,000 105,572
Aetna Real Estate Assoc. 517 Units 3,919 2,585
SPDR Unit Series 1 2,000 Units 203,233 246,625
Spectra Common Stock Fund 314 Units 6,050 7,914
UIT 1st Trust Special Situations Internet Growth 1,982 Units 20,004 54,048
----------- -----------
TOTAL 102,462,062 106,166,742
----------- -----------
</TABLE>
See accompanying independent auditors' report.
29
<PAGE> 30
SCHEDULE 1
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(a) Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(C)
(B) DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE, (E)
BORROWER, LESSOR, RATE OF INTEREST, COLLATERAL (D) CURRENT
(A) OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
- ----- ----------------------------- ---------------------------- ------- -------
<S> <C> <C> <C> <C>
CORPORATE DEBT INSTRUMENTS
Alza Corp. 5.000% Due 5/1/2006 61,000 Par Value 71,124 88,145
Detroit Edison Co. 7.740% Due 6/1/2018 20,000 Par Value 19,365 21,683
Sys & Computer Tech Corp 5.0% Conv Sub Due 10/15/2004 15,000 Par Value 14,175 12,075
Countrywide Home Loans Inc Medium Term Notes 50,000 Par Value 50,000 48,771
Mascotech Inc. 4.500% Due 12/15/2003 20,000 Par Value 18,733 16,200
General Foods Corp 6.00% Deb Due 6/15/2001 10,000 Par Value 10,002 10,102
Systems Software Assoc. Inc. 7.000% Due 9/15/2002 10,000 Par Value 10,638 7,150
US West Communications Inc. 7.500% Due 6/15/2023 36,000 Par Value 36,525 38,301
Intl Business Machines Corp 7.5% Deb Due 6/15/2013 5,000 Par Value 5,467 5,817
------- -------
TOTAL 236,029 248,244
------- -------
COMMON STOCK
1st Health Group 1,900 Shares 47,257 31,469
1st Tenn National Corp 411 Shares 11,637 15,628
1st Union Corp 586 Shares 33,360 35,644
4 Seasons Hotels 100 Shares 3,609 2,925
Abbott Laboratories 1,434 Shares 36,770 70,273
Aber Res Ltd Com New 1,000 Shares 6,768 5,656
Abrams Inds. 10,613 Shares 54,521 53,065
Access Worldwide Communications Inc 60,200 Shares 722,400 504,175
Acnielsen Corp. 49 Shares 695 1,384
Actrade Intl Ltd 200 Shares 2,267 2,825
Adaptec Inc. 38,500 Shares 737,958 676,156
Ade Corp Mass 16,000 Shares 231,960 208,000
ADR Alcatel Alsthom Sponsored NM Chgd Alcatel 9/16/98 510 Shares 9,513 12,463
ADR Allied Zurich PLC Level 1 59 Shares 1,027 1,766
ADR Banco Frances Del Rio De La Plata S A Sponsored 300 Shares 8,833 6,225
ADR Brit Amern TOB PLC Sponsored 59 Shares 1,027 1,033
ADR Brit Steel PLC ADR 400 Shares 10,209 5,850
ADR BTR PLC Exch ADR BTR Siebe PLC Level 1 Mand 463 Shares 8,644 3,782
ADR Business Objects SA Sponsored ADR 12,400 Shares 179,304 403,000
ADR Centrais Eletr Bras Electrobras ADR 240 Shares 4,799 2,066
ADR Centrais Geradoras Sponsored 24 Shares 153 157
ADR Corporacion Bancaria de Espana 400 Shares 11,938 20,600
ADR De Beers Cons Mines Ltd 690 Shares 17,154 8,798
ADR Den Danske Bk Af 1871 Aktieselskab Denmark 110 Shares 10,486 14,778
ADR Deutsche Telekom Ag 400 Shares 10,425 13,100
ADR Diageo PLC Sponsored 343 Shares 10,175 15,864
ADR Doncasters PLC Sponsored 29,500 Shares 597,471 477,531
</TABLE>
See accompanying independent auditors' report.
30
<PAGE> 31
SCHEDULE 1
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(a) Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(C)
(B) DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE, (E)
BORROWER, LESSOR, RATE OF INTEREST, COLLATERAL (D) CURRENT
(A) OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
- ----- ----------------------------- ---------------------------- ------ -------
<S> <C> <C> <C> <C>
COMMON STOCK
ADR Elf Aquitaine Sponsored 240 Shares 8,625 13,590
ADR Ericsson LM Tel Co Cl B Ser10 540 Shares 11,675 12,926
ADR Evn AG 140 Shares 4,223 3,850
ADR Fiat SPA Unsponsored Repst Ord 400 Shares 9,171 7,050
ADR Fletcher Challenge Ltd Forest 725 Shares 6,612 2,266
ADR Fletcher Challenge Paper Div 250 Shares 5,457 1,625
ADR Fuji Photo Film Co. 260 Shares 6,720 9,523
ADR Glaxo Wellcome PLC 324 Shares 13,645 22,518
ADR Groupe Danone Sponsored 620 Shares 18,782 34,875
ADR Hitechi Ltd ADR for 10 Com 150 Shares 15,738 9,066
ADR Hoechst A G Isin 200 Shares 8,910 8,200
ADR Hutchison Whampoa Ltd 200 Shares 6,990 7,067
ADR Imperial Chem Ind PLC 170 Shares 7,790 5,939
ADR Ing Groep NV 150 Shares 4,605 9,328
ADR Instituto Bancario San Paolo 1268 Shares 22,366 45,331
ADR Iscor Ltd 663 Shares 5,215 1,195
ADR Jardine Matheson Hldg Ltd Sponsored 1720 Shares 12,778 4,438
ADR Korea Elec Pwr Co. Sponsored 210 Shares 4,073 3,294
ADR Magellan Pete Australia 4200 Shares 11,900 3,675
ADR Matsushita Elec Indl Co 50 Shares 8,350 8,725
ADR Metrogas S A Sponsored 1000 Shares 10,099 8,250
ADR Nestle SA Sponsored 160 Shares 8,056 17,200
ADR Nice Sys Ltd 1000 Shares 14,655 21,625
ADR Nokia Corp Sponsored Finland 125 Shares 11,249 15,055
ADR Peugeot SA 390 Shares 11,466 15,098
ADR Philips Elec Ex Koninklijke Philip Elec N/C 3- 350 Shares 14,312 23,691
ADR Pohang Iron & Stl Ltd 200 Shares 4,875 3,375
ADR Reuters Group 99 Shares -- 6,274
ADR Shire Pharmaeuticals Group 166 Shares 3,649 3,362
ADR Siemens AG Com Cap 220 Shares 10,962 14,200
ADR Smithkline Beecham PLC Repstg 467 Shares 20,995 32,457
ADR Societe Generale France 310 Shares 7,285 10,045
ADR Tele Danmark A/S Sponsored 730 Shares 19,019 49,549
ADR Tele De Mex SA CV L Rpstg 600 Shares 18,750 29,213
ADR telecom Italia Spa 500 Shares 15,234 43,500
ADR Telefonica S A Sponsored 160 Shares 5,957 21,660
ADR Teva Pharmaceutical Inds 480 Shares 20,004 19,530
ADR Unilever N Y NY Sh 4 Guilders 160 Shares 8,495 13,270
ADR YPF Sociedad Anonima Sponsored 370 Shares 7,360 10,337
Advanced Digital Information Corp 200 Shares 3,025 3,200
</TABLE>
See accompanying independent auditors' report.
31
<PAGE> 32
SCHEDULE 1
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(a) Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(C)
(B) DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE, (E)
BORROWER, LESSOR, RATE OF INTEREST, COLLATERAL (D) CURRENT
(A) OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
- ----- ----------------------------- ---------------------------- ------- ---------
<S> <C> <C> <C> <C>
COMMON STOCK
Advanced Materials Group Inc 1,686 Shares -- 2,108
Affymetrix Inc 700 Shares 22,462 17,063
AFLAC Inc. 800 Shares 20,382 35,200
Agribiotech Inc 1,000 Shares 16,280 12,938
Air Methods Corp. 230 Shares 995 618
Airtouch Communications Inc 425 Shares 26,103 30,653
Alberto-Culver Co. 695 Shares 20,063 18,548
Albertson's Inc. 203 Shares 10,742 12,908
Alliance Pharmaceutical Corp 74,687 Shares 366,578 245,067
Allstate Corp 630 Shares 28,080 24,334
Alltel Corp 200 Shares 9,865 11,963
Altera Corp. 270 Shares 14,322 16,436
Alza Corp 500 Shares 26,523 26,125
Amazon Com 250 Shares 8,505 80,313
AMBAC Financial Group 200 Shares 3,570 12,038
AMDOCS Ltd 27,100 Shares 452,291 464,088
Amer W. Hldg Corp 42,000 Shares 771,588 714,000
America 1st Mortgage Investments 790 Shares 6,480 3,606
America On-line 4,362 Shares 584,611 697,920
American Buildings Co. 10,600 Shares 181,735 259,700
American Express Co. 985 Shares 64,802 100,716
American Home Prod Corp 425 Shares 19,489 23,959
American International Group, Inc. 1,093 Shares 76,779 105,611
American Media Inc. 60,000 Shares 240,219 333,750
American Power Conversion Corp. 1,100 Shares 400,250 595,781
American Water Works Co., Inc. 471 Shares 8,106 13,863
Americredit Corp. 80,700 Shares 775,071 1,114,669
Ameritech Corp. 410 Shares 13,532 26,006
Ames Dept. Stores Inc. 37,300 Shares 739,519 1,007,100
Amgen Inc. 1,716 Shares 87,882 179,429
Amoco Corp Com Exch ADR BP Amoco PLC @.6616666 100 Shares 4,553 5,900
Analogic Corp. 25,000 Shares 475,665 940,625
Andrew Corp. 16,600 Shares 237,854 273,900
Anicom Inc. 600 Shares 4,509 5,513
Antec Corp. 54,600 Shares 297,440 598,825
Apex PC Solutions Inc. 21,400 Shares 636,443 617,925
Apple Computer, Inc. 200 Shares 5,790 8,188
Applied Magnetics Corp 2,000 Shares 17,625 12,375
Applied Materials Inc 1,280 Shares 43,165 54,640
ASA Holdings Inc. 10,000 Shares 386,273 305,000
</TABLE>
See accompanying independent auditors' report.
32
<PAGE> 33
SCHEDULE 1
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(a) Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(C)
(B) DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE, (E)
BORROWER, LESSOR, RATE OF INTEREST, COLLATERAL (D) CURRENT
(A) OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
- ----- ----------------------------- ---------------------------- --------- ---------
<S> <C> <C> <C> <C>
COMMON STOCK
Ashland Inc. 200 Shares 9,898 9,675
Astec Ind. 500 Shares 25,934 27,813
AT&T Corp. 611 Shares 30,598 45,955
Atlas Air Inc. 15,500 Shares 582,151 758,531
Authomatic Data Processing, Inc. 393 Shares 13,284 31,514
Autozone Inc. 200 Shares 4,700 6,588
Avigen Inc 1,000 Shares 4,278 7,813
Aviron Corp 39 Shares 1,078 17,004
Avon Products, Inc. 205 Shares 7,243 9,067
Ballys Total Fitness Hldg Corp. 33,500 Shares 772,602 833,313
Bandag Inc. 200 Shares 4,364 7,988
Bandag Inc. CL A 19,700 Shares 964,964 687,038
Bank One Corp 820 Shares 40,509 41,871
BankAmerica Corp 497 Shares 29,263 29,882
Bankers Trust Corp. 7,470 Shares 231,978 638,218
BE Aerospace Inc. 20,400 Shares 644,686 428,400
Bed Bath & Beyond 300 Shares 9,811 10,238
Bell Atlantic Corp 100 Shares 4,939 5,300
Bellsouth Corp. 2,218 Shares 43,360 110,634
Bergen Brunswick Corp Class A 1,050 Shares 30,684 36,619
Berkshire Hathway Inc. 55 Shares 108,216 129,250
Bestfoods 170 Shares 5,591 9,053
Bethlehem Steel Corp 300 Shares 4,605 2,513
BHC Communications Inc. 24,200 Shares 1,678,354 2,395,608
Biochem Pharma Inc. 26 Shares 582,061 682,019
Biogen Inc 200 Shares 16,267 16,600
Biomatrix Inc. 20,400 Shares 663,698 1,188,300
Biomet Inc. 23,800 Shares 373,366 957,950
Blackrock Hi Yield 1,300 Shares -- 19,500
Bldg 1 Svcs Corp 34,000 Shares 680,000 709,750
BMC Software Inc. 18,000 Shares 169,448 802,125
Boeing Co. 201 Shares 10,291 6,546
Borders Group Inc. 19,900 Shares 294,983 496,256
Boston Chicken 663 Shares 9,015 206
Boston PPTYS Inc. 845 Shares 26,406 25,773
Boston Scientific Corp 400 Shares 11,263 10,725
Bristol Myers Squib Co. 586 Shares 40,494 78,438
Brush Wellman Inc. 12,000 Shares 257,457 209,250
Burl Northern Santa Fe Corp 120 Shares 4,273 4,050
Cadence Design System Inc. 21,800 Shares 309,820 648,550
</TABLE>
See accompanying independent auditors' report.
33
<PAGE> 34
SCHEDULE 1
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(a) Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(C)
(B) DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE, (E)
BORROWER, LESSOR, RATE OF INTEREST, COLLATERAL (D) CURRENT
(A) OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
- ----- ----------------------------- ---------------------------- --------- ---------
<S> <C> <C> <C> <C>
COMMON STOCK
Calenergy Inc Com Exch Midamerican Energy 61,500 Shares 2,004,277 2,133,281
Callaway Golf Co. 12 Shares 217 120
Can So Petro Ltd 1,000 Shares 7,600 5,000
Carnegie International Corp 2,650 Shares 7,681 6,122
Carnival Crop CL A N/C Carnival Corp Com Stk Eff 6/15 560 Shares 3,937 26,880
Caterpillar Inc. 244 Shares 12,822 11,246
Cavalier Homes Inc. 31,000 Shares 290,610 352,625
CDW Computers Ctrs Inc. 8,500 Shares 686,793 815,469
CEC Entmt Inc. 19,700 Shares 557,313 546,675
Celestica Inc. 22,900 Shares 601,977 565,344
Cellstar Corp. 11,400 Shares 122,679 77,663
Cendant Corp. 1,376 Shares 36,713 26,230
Century Tel Enterprises Inc 915 Shares 45,536 61,763
Ceridian Corp. 5,900 Shares 224,185 411,894
Charter 1 Financial Inc. 453 Shares 5,775 12,571
Chase Manhattan Corp 501 Shares 28,673 34,118
Chateau Communities Inc. 300 Shares 8,631 8,794
Checkfree Hldg Corp. 30,400 Shares 509,996 710,600
Chemed Corp. 310 Shares 9,708 10,373
Chevron Corp. 406 Shares 24,303 33,670
Chiron Corp 930 Shares 20,197 24,354
Chittenden Corp. 29,962 Shares 564,218 958,784
Chris-Craft Industries Inc. 37,692 Shares 1,398,229 1,816,283
Cigna Corp. 60 Shares 4,103 4,639
Circus Circus Enterprises Inc. 300 Shares 7,550 3,431
Cisco Systems Inc. 2,983 Shares 201,324 276,860
Citigroup Inc 2,057 Shares 97,303 101,807
Citizens Utils Co. Series B 570 Shares -- 4,633
CKE Restaurants Inc. 600 Shares 432,123 737,174
Claire's Stores Inc. 535 Shares 9,923 10,968
Clorox Co. 80 Shares 4,065 9,345
CMAC Invt Corp 11,200 Shares 706,272 514,500
CMGI Inc. 280 Shares 18,650 29,820
CMP Media Inc. 20,000 Shares 324,980 365,000
Coca Cola Co. 3,084 Shares 159,401 206,214
Coca Cola Enterprises Inc. 201 Shares 8,383 7,170
Cognos Inc. 83,600 Shares 1,752,531 2,090,000
Colgate-Palmolive Co. 410 Shares 22,218 38,079
Columbia/HCA Healthcare Corp. 195 Shares 5,825 4,826
Comair Holdings Inc. 23,200 Shares 593,478 783,000
</TABLE>
See accompanying independent auditors' report.
34
<PAGE> 35
SCHEDULE 1
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(a) Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(C)
(B) DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE, (E)
BORROWER, LESSOR, RATE OF INTEREST, COLLATERAL (D) CURRENT
(A) OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
- ----- ----------------------------- ---------------------------- ------- ---------
<S> <C> <C> <C> <C>
COMMON STOCK
Commercial Net Lease 500 Shares 6,625 6,625
Commscope Inc. 44,200 Shares 596,700 743,113
Community Bank Systems Inc 530 Shares 18,341 15,549
Compaq Computer Corp. 2,799 Shares 80,981 117,390
Computer Sci Corp 575 Shares 31,742 37,052
CompuWare 600 Shares 37,551 46,875
Comverse Technology Inc. 21,135 Shares 531,166 1,500,585
Conagra Inc. 571 Shares 14,403 17,987
Conmed Corp 30,000 Shares 741,249 990,000
Conseco Inc. 1,687 Shares 82,918 51,559
Corn Products International 21 Shares 413 638
Cortech Inc. 150 Shares 938 936
Cor Therapeutics Inc. 100 Shares 1,136 1,325
Corus Bankshares 600 Shares 10,035 19,350
Corrections Corp Ex Prison Realty @.875 Stk Mgr 700 Shares 16,658 12,338
Cousins Props Inc. 300 Shares 8,538 9,675
CPB Inc. 24,000 Shares 384,460 420,000
Cree Resh Inc. 500 Shares 16,405 23,938
Crescendo Pharmaceuticals 5 Shares 5,092 68
Crescent Oper. Inc. 120 Shares 16,875 570
Crescent Real Estate 1,200 Shares 11,783 27,600
Cubist Pharmaceuticals Inc. 2,000 Shares 11,876 7,625
Cytyc Corp. 500 Shares 12,117 12,875
Daimler Chrysler 90 Shares 4,437 8,646
Datascope Corp. 20,000 Shares 338,929 460,000
Datawatch Corp. 3,000 Shares 11,761 4,125
Dave & Busters Inc. 200 Shares 5,182 4,613
Deere & Company 201 Shares 9,878 6,664
Dell Computer Corp. 4,178 Shares 259,216 305,777
Deltic Timber Corp. 13,000 Shares 356,130 264,875
Diacrin Inc. 1,000 Shares 10,785 5,938
Diebold Inc. 458 Shares 10,032 16,357
Dime Bancorp Inc. 54,800 Shares 689,730 1,448,775
Dollar General Corp 751 Shares 19,190 17,733
Dollar Thrifty Automotive Group Inc. 52,900 Shares 603,589 681,088
Dominion Resources Inc. 750 Shares 28,967 35,085
Dover Downs Entertainment Inc. 1,500 Shares 20,104 18,094
Dow Jones & Co. Inc. 10,000 Shares 429,880 481,250
DSP Communications Inc. 27,000 Shares 429,608 413,438
Du Pont Co. 555 Shares 37,529 29,450
</TABLE>
See accompanying independent auditors' report.
35
<PAGE> 36
SCHEDULE 1
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(a) Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(C)
(B) DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE, (E)
BORROWER, LESSOR, RATE OF INTEREST, COLLATERAL (D) CURRENT
(A) OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
- ----- ----------------------------- ---------------------------- ------- ---------
<S> <C> <C> <C> <C>
COMMON STOCK
Duke Energy Corp. 1,093 Shares 56,656 70,026
Dun & Bradstreet Corp. 150 Shares 2,739 4,734
DVI Inc. 275 Shares 4,842 4,984
Dycom Industries Inc. 605 Shares 14,632 34,561
E Trade Group Inc. 250 Shares 12,296 11,695
Eastman Chemical Co. 100 Shares 6,269 4,475
Echo Bay Mines Ltd 10,000 Shares 25,405 17,500
Electro Rent Corp. 82,600 Shares 885,365 1,331,925
EMC Corp. 4,325 Shares 606,081 2,110,125
Emerson Electric Co. 100 Shares 2,872 6,050
Enron Corp. 200 Shares 7,530 11,413
Ensco International Inc. 800 Shares 27,946 8,550
Equifax Inc. 2,490 Shares 77,471 85,127
Equity Residential Inc. 317 Shares 16,041 12,838
Express Scripts Inc. 1,140 Shares 25,032 76,523
Exxon Corp. 1,291 Shares 61,442 94,411
FAB Industries Inc. 7,000 Shares 189,217 150,500
Fahnestock Viner Holdings 15,700 Shares 255,054 274,750
Fairfield Communities Inc. 31,100 Shares 617,715 344,044
FDX Corp 100 Shares 4,428 8,900
Federal -Mogul Corp. 22,100 Shares 805,365 1,314,950
FHLMC 1,270 Shares 19,108 81,836
First Community Corp 600 Shares 10,160 9,825
First Data Corp. 828 Shares 28,515 26,237
Fleet Financial Group Inc. 150 Shares 6,143 6,703
FNMA 1,019 Shares 47,079 75,406
Food Lion 400 Shares 3,588 4,250
Ford Motor Company 150 Shares 8,967 8,776
Forest City Enterprises Inc. Class A 39,600 Shares 544,361 1,039,500
Forest City Enterprises Inc. Class B 5,700 Shares 62,796 146,775
Fortune Brands Inc. 200 Shares 7,381 6,325
Franchise Finance Corp. of America 5,388 Shares 122,057 129,305
Franklin Electronic Publishers Inc. 600 Shares 10,205 7,050
Franklin Res. Inc. 600 Shares 7,485 19,200
Frontier Corp. 2,364 Shares 61,603 80,379
Gannett Co., Inc. 770 Shares 39,043 49,665
Garan Inc. 13,000 Shares 222,569 365,625
GDR IRSA Inversiones Y Representaciones 254 Shares 9,550 7,064
Gen Re Corp Com Exch Berkshire Hathaway CL B @ .10 150 Shares 30,811 30,525
</TABLE>
See accompanying independent auditors' report.
36
<PAGE> 37
SCHEDULE 1
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(a) Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(C)
(B) DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE, (E)
BORROWER, LESSOR, RATE OF INTEREST, COLLATERAL (D) CURRENT
(A) OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
- ----- ----------------------------- ---------------------------- --------- ---------
<S> <C> <C> <C> <C>
COMMON STOCK
General Electric Co. 3,274 Shares 214,390 334,158
General Magic Inc 3,000 Shares 25,638 15,094
General Motors Corp. 239 Shares 12,871 17,123
Genesco Inc 100 Shares 599 569
Genesis MicroChip Inc. 500 Shares 11,051 12,125
Gentex Corp 1,200 Shares 14,734 24,000
Genzyme Corp 200 Shares 5,827 9,950
Gillette Co. 2,036 Shares 44,927 98,355
Global Marine Inc. 1,875 Shares 26,863 16,875
Gold Standard Inc. 125 Shares 7,143 156
Golden Street Bancorp Inc. 210 Shares 3,443 3,491
Golden Street Bancorp Litig Wt 210 Shares 397 958
GTE Corp. 310 Shares 15,621 20,166
Guidant Corp. 455 Shares 29,705 50,164
Gulfstream Aerospace Corp. 15,300 Shares 387,059 814,725
Gyrodyne Co. of America Inc. 4,025 Shares 66,384 53,331
HBR FLA Bancorp Inc. 102 Shares 1,235 1,138
HCR Manor Care Inc. 1,300 Shares 34,580 38,188
Heilig-Meyers Co. 500 Shares 3,811 3,344
Helix Technology Corp. 430 Shares 8,770 5,590
Henry Jack & Assoc. Inc. 300 Shares 13,254 14,925
Hewlett-Packard Co 499 Shares 23,070 34,088
Hibernia Corp -- Shares 9 8
Hilb Rogal & Hamilton Co. 400 Shares 7,175 7,950
Hollywood Entmt Corp 28,000 Shares 588,000 763,000
Home Depot Inc. 2,448 Shares 96,812 149,787
Hrpt Pptys Tr Sh Ben Int 200 Shares 4,038 2,813
Hudson General Corp 1,000 Shares 12,393 63,000
Hyperion Solutions Corp. 31,000 Shares 630,205 558,000
IBP Inc. 200 Shares 4,992 5,825
ICN Pharmaceuticals Inc. 1,245 Shares 18,468 28,168
Imation Corp. 103,100 Shares 1,995,590 1,804,250
IMS Health Inc. 150 Shares 4,006 11,316
INDL Bancorp Inc. 13,000 Shares 140,284 260,000
Informix Corp. 200 Shares 4,375 1,975
Insight Enterprises Inc. 12,900 Shares 437,968 656,288
Integrated Process Equip. Corp. 8,000 Shares 92,240 86,000
Intel Corp. 2,042 Shares 150,939 242,157
International Business Machines 670 Shares 79,302 123,840
International Game Technology 114,300 Shares 1,845,542 2,616,461
</TABLE>
See accompanying independent auditors' report.
37
<PAGE> 38
SCHEDULE 1
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(a) Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(C)
(B) DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE, (E)
BORROWER, LESSOR, RATE OF INTEREST, COLLATERAL (D) CURRENT
(A) OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
- ----- ----------------------------- ---------------------------- --------- ---------
<S> <C> <C> <C> <C>
COMMON STOCK
Interpublic Group of Companies Inc. 240 Shares 11,014 19,140
Intimate Brands Inc. 1,925 Shares 42,326 57,509
ISB Finl Corp. 190 Shares 2,707 4,204
ITC Deltacom Inc. 500 Shares 6,813 7,625
Jackpot Enterprises, Inc. 15,000 Shares 164,799 141,563
Jefferson-Pilot Corp. 150 Shares 7,530 11,250
Johnson & Johnson 1,284 Shares 70,967 107,682
Jones Apparel Group Inc. 84,300 Shares 865,735 1,859,869
Jones Pharma Inc. 27,200 Shares 836,993 992,800
Keebler Foods Co. 630 Shares 19,751 23,704
Kroger Co. 300 Shares 9,355 18,150
Lakeview Finl Corp. 1 Shares 25 30
LAM Research Corp. 20,000 Shares 413,520 356,250
Lancaster Colony Corp 1,105 Shares 41,954 35,498
Lauder Estee Cos. Inc. 400 Shares 18,631 34,200
Leap Wireless Intl Inc. 19,100 Shares 743,581 138,475
Lear Corp 250 Shares 13,149 9,625
Learning Co. Inc. 35,900 Shares 1,019,905 931,156
Lernout & Hauspie Speech Pro. 400 Shares 13,076 13,050
Lifecell Corp 400 Shares 2,089 1,750
Ligand Pharmaceuticals Inc. 2,000 Shares 18,896 23,250
Lilly, Eli & Co. 401 Shares 19,161 35,637
Lincare Holdings 1,380 Shares 34,852 55,976
Lindsay Mfg. 600 Shares 14,397 8,888
Littlefield Adams & Co. 846 Shares -- 3,859
Lockheed Martin Corp. 100 Shares 11,393 8,475
Loewen Group Inc. 1,000 Shares 23,780 8,438
Lowes Corp. 20 Shares 1,765 1,965
Lowes Cos. Inc. 1,050 Shares 35,012 53,747
LSI Logic Corp. 100 Shares 2,007 1,613
Lucent Technologies Inc. 1,593 Shares 104,771 175,274
Marcus Corp. 54,475 Shares 857,081 885,219
Marsh & McLennan Cos., Inc. 150 Shares 5,632 8,766
Massbank Corp. 3,199 Shares 67,491 125,161
Mattel Inc. 1,790 Shares 54,676 40,384
Maytag Corp 80 Shares 4,104 4,980
McClatchy Co. 19,625 Shares 339,925 694,234
McCormick & Co. 200 Shares 4,860 6,763
McDonalds Corp. 830 Shares 33,278 63,569
MCI WorldCom 3,700 Shares 173,143 265,475
</TABLE>
38
<PAGE> 39
SCHEDULE 1
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(a) Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(C)
(B) DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE, (E)
BORROWER, LESSOR, RATE OF INTEREST, COLLATERAL (D) CURRENT
(A) OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
- ----- ----------------------------- ---------------------------- ------- --------
<S> <C> <C> <C> <C>
COMMON STOCK
MCN Energy Group Inc. 418 Shares 14,114 7,959
Media Gen Inc 200 Shares 8,950 10,600
MediaOne Group Inc. 100 Shares 3,881 4,700
Medimmune Inc. 117 Shares 7,911 11,634
Meditrust Paired CTF 768 Shares 22,384 11,618
Medtronic Inc. 2,980 Shares 116,171 221,265
Mellon Bank Corp 202 Shares 14,704 13,909
Mentor Graphics Corp. 50,000 Shares 418,265 425,000
Mercantile Bankshares Corp. 17,100 Shares 299,038 658,350
Merck & Co. Inc. 1,992 Shares 178,266 294,139
Mercury General Corp. 500 Shares 11,195 21,906
Merrill Lynch & Co., Inc. 100 Shares 8,425 6,675
Metromedia international Group Inc. 31,580 Shares 188,874 171,716
Micron Tech Inc. 200 Shares 11,087 10,113
Microsoft Inc. 2,173 Shares 196,932 301,368
Mindspring Enterprises Inc. 225 Shares 9,203 13,739
Misty MTN Gold Ltd. 500 Shares 2,278 234
Modis Professional Svcs Inc. 21,300 Shares 324,252 308,850
Monsanto Co. 1,959 Shares 88,042 93,042
Morgan St Dean W Discover Grp Inc N/C Morgan St Dean & 363 Shares 7,995 25,773
Morgan, J.P. & Co., Inc. 22 Shares 2,132 2,311
Morrison Knudsen Corp. 33 Shares 210 103
Mosaix Inc. 200 Shares 2,051 1,550
Motorola Inc. 552 Shares 38,217 33,712
N.W. Airlines Corp 1,000 Shares 29,389 25,563
Natl Data Corp 16,500 Shares 561,642 803,344
NCR Corp 200 Shares 6,830 8,350
Neomagic Corp 700 Shares 13,242 15,488
Netscape Communications Corp 200 Shares 12,030 12,150
Networks Assoc. Inc. 891 Shares 42,217 59,029
New Plan Realty Trust 576 Shares 13,760 12,776
Newmont Mining Corp. 50 Shares 2,143 903
Nextel Communications Inc. 400 Shares 9,271 9,450
Nextlink Communications Inc. 100 Shares 2,455 2,838
Nielsen Media Research Inc. 50 Shares 309 900
Nike, Inc. 393 Shares 18,845 15,948
Nobel Drilling Corp 250 Shares 8,229 3,234
Norfolk Southern Corp. 382 Shares 11,823 12,105
Norrell Corp. 4,830 Shares 88,139 71,243
Northern Telecom Ltd. 150 Shares 3,358 7,519
</TABLE>
See accompanying independent auditors' report.
39
<PAGE> 40
SCHEDULE 1
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(a) Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(C)
(B) DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE, (E)
BORROWER, LESSOR, RATE OF INTEREST, COLLATERAL (D) CURRENT
(A) OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
- ----- ----------------------------- ---------------------------- ------- ---------
<S> <C> <C> <C> <C>
COMMON STOCK
Nova Corp Ga 20,600 Shares 534,127 714,563
Nuevo Energy Co. 321 Shares 7,182 3,692
Oak Technology Inc. 1,500 Shares 14,374 5,250
Occidental Petroleum Corp. 1,143 Shares 32,284 19,294
Ogden Corp 300 Shares 7,825 7,519
Opal Tech. 10,000 Shares 12,508 2,900
Oracle Corp. 605 Shares 14,869 26,091
Orthodontic Ctr Amer. 28,800 Shares 551,091 559,800
Osteotech Inc. 19,600 Shares 502,297 911,400
Outback Steakhouse Inc. 1,030 Shares 27,949 41,071
Pacific Gulf Inc. 2,200 Shares 50,302 44,138
Paine Webber Group Inc. 9,000 Shares 213,360 347,625
Parametric Tech. Corp. 1,990 Shares 46,288 32,586
Parexel Intl Corp 25,000 Shares 537,680 625,000
Parker-Hannifin Corp. 300 Shares 10,657 9,825
Patterson Dental Co. 1,135 Shares 29,338 49,373
Patterson Energy Inc. 1,000 Shares 12,242 4,063
Paychex Inc. 200 Shares 10,255 10,288
Penney J. C. 101 Shares 6,078 4,739
Pepsico Inc. 1,860 Shares 62,339 76,144
Personnel Group of America Inc. 39,400 Shares 283,828 689,500
Pfizer Inc. 2,556 Shares 177,845 320,560
PG&E Corp. 280 Shares 6,347 8,820
Philip Morris Com. Inc. 1,360 Shares 64,302 72,760
Philips Petroleum Co. 595 Shares 27,725 25,362
Pinnacle Sys Inc. 20,000 Shares 533,304 715,000
Pittson Brinks Group Inc. 1,525 Shares 51,247 48,609
Platinum Software Corp. 600 Shares 8,261 7,688
Powertel Inc. 75 Shares 926 1,017
Premier Natl Bancorp Inc 16,380 Shares 170,787 304,054
Pre-paid Legal Services, Inc. 500 Shares 12,874 16,500
PressTek Inc. 800 Shares 19,660 5,450
Price T. Rowe Associates Inc. 600 Shares 17,667 20,550
Procter & Gamble Co. 496 Shares 36,518 45,311
Progress Software Corp. 89,250 Shares 910,389 3,012,188
Provident Cos Inc. 750 Shares 29,015 31,125
Provident Finl Holdings Inc. 290 Shares 3,661 4,948
PSS World Med Inc 34,800 Shares 558,164 800,400
Public Service Enterprise Group Inc. 100 Shares 3,724 4,000
QuadraMed Corp 22,500 Shares 550,087 461,250
</TABLE>
See accompanying independent auditors' report.
40
<PAGE> 41
SCHEDULE 1
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(a) Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(C)
(B) DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE, (E)
BORROWER, LESSOR, RATE OF INTEREST, COLLATERAL (D) CURRENT
(A) OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
- ----- ----------------------------- ---------------------------- --------- ---------
<S> <C> <C> <C> <C>
COMMON STOCK
Qualcomm Inc. 76,400 Shares 2,232,451 3,960,029
Quantum Corp. 26,700 Shares 604,977 567,375
Qwest Communications Intl Inc. 1,751 Shares 56,327 87,550
R & B Falcon Corp 630 Shares 19,791 4,764
R H Donnelley Corp. 30 Shares 266 437
Rainbow Technologies Inc. 33,000 Shares 411,945 620,813
Raymond James Financial Inc. 16,750 Shares 317,955 353,844
Raytheon Co. 12 Shares 545 620
Readers Digest Assn. Inc. 250 Shares 6,250 6,297
Reebok International Inc. 140 Shares 3,640 2,083
Remedytemp 666 Shares 10,020 10,073
Renal Care Group, Inc. 20,900 Shares 524,300 602,181
Rep Ind. Inc. 500 Shares 11,561 7,375
Repligen Corp 1,850 Shares 2,044 2,370
Rexall Sundown 100 Shares 3,730 1,400
RF Monolithics Inc. 300 Shares 3,389 2,794
Ricex Co. 450 Shares 2,660 309
Richfood Hldgs Inc 23,900 Shares 654,939 495,925
Rio Hotel & Casino Com Exch Harrah's Entertain 61,000 Shares 1,011,632 968,375
Rollins Inc. 26,500 Shares 554,140 463,750
Rowan Co., Inc. 1,200 Shares 36,570 12,000
Royal Dutch Petroleum 116 Shares 6,325 5,554
Safeco Corp. 100 Shares 2,856 4,294
Safeguard Scientifics 300 Shares 7,959 8,231
Safeskin Corp 1,030 Shares 32,457 24,849
Saks Inc. 24,400 Shares 389,600 770,125
Sandhurst Res Ltd 3,000 Shares 3,378 --
Sara Lee Corp. 2,812 Shares 67,948 79,273
SBC Communications Inc. 609 Shares 20,005 32,675
SCH Specialty Inc. 45,192 Shares 725,005 965,979
Schering-Plough Corp. 620 Shares 17,771 34,255
Schlumberger Ltd. 1,275 Shares 78,903 58,809
Schwab Charles Corp 850 Shares 41,109 47,768
Scientific Atlanta Inc. 28,100 Shares 535,061 641,031
Scientific Games Hldgs Corp 15,000 Shares 303,734 283,125
Scios Inc 200 Shares 2,030 2,075
SDL Inc. 32,100 Shares 710,637 1,271,963
Sears Roebuck and Co. 180 Shares 9,429 7,650
SEI Invt. Co. 10,100 Shares 739,342 1,003,688
</TABLE>
See accompanying independent auditors' report.
41
<PAGE> 42
SCHEDULE 1
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(a) Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(C)
(B) DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE, (E)
BORROWER, LESSOR, RATE OF INTEREST, COLLATERAL (D) CURRENT
(A) OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
- ----- ----------------------------- ---------------------------- --------- ---------
<S> <C> <C> <C> <C>
COMMON STOCK
Separcor Inc 1,300 Shares 64,624 113,831
Sequent Computer Systems Inc 100 Shares 1,855 1,206
Service Corp. International 220 Shares 7,609 8,374
Shaw Ind. Inc. 23,500 Shares 265,586 569,875
Shire Pharmaceuticals Group 1,000 Shares 5,844 6,375
Sierra Health Services Inc. 200 Shares 3,805 4,213
Signal Corp Com Exch FirstMerit Corp Com @ 1.23 2-1 4,562 Shares 51,355 156,249
Simpson Mfg Inc. 480 Shares 19,783 17,970
Sirrom Cap Corp. 56,700 Shares 1,094,522 279,956
Skyline Corp. 12,800 Shares 397,244 416,000
SLM Hldg Corp. 960 Shares 44,911 46,080
Smith Intl Inc. 100 Shares 3,461 2,519
Software Spectrum Inc. 22,000 Shares 411,874 349,250
SouthTrust Corp. 1,402 Shares 23,706 51,786
Spaghetti Whse Inc Com Stk Exch Cash Mgr 8.00 8,000 Shares 39,440 61,000
Splash Tech. Holdings Inc. 32,400 Shares 807,197 240,975
Sports Auth. 59,100 Shares 403,995 310,275
SPX Corp 11,600 Shares 669,183 777,200
St Financial Services Corp 329 Shares 4,545 4,935
St St Corp 150 Shares 10,602 10,434
Staarwd Hotels & Resort N/C Starwd Hotels & Resort 400 Shares 20,230 9,075
Staffmark Inc. 600 Shares 579,017 642,163
Staples Inc. 855 Shares 13,197 37,353
Starbucks Corp 50 Shares 2,581 2,806
Stericycle Inc. 100 Shares 1,827 1,613
Steris Corp. 200 Shares 3,490 5,688
Sterling Comm. Inc. 600 Shares 887,731 1,129,500
Stewart Information Services Corp. 7,000 Shares 216,607 406,000
Storage Tech. Corp. 1,100 Shares 20,878 39,119
Summit Bancorp 150 Shares 3,466 6,553
Sun Microsystems Inc. 6,300 Shares 458,914 539,438
Sunbeam Corp. 200 Shares 9,351 1,377
Sunoco Inc. 94 Shares 3,874 3,390
Sunrise Assisted Living Inc. 9,700 Shares 288,315 503,188
Sunterra Corp. 37,500 Shares 725,745 562,500
Superior Inds. International Inc. 10,000 Shares 253,060 278,125
Synovus Financial Corp 550 Shares 13,428 13,406
Syquest Tech. Inc. 6,000 Shares 2,617 2,064
Sys & Computer Tech Corp 600 Shares 15,635 8,250
Sysco Corp. 300 Shares 5,742 8,231
System Software Assn. Inc. 86,650 Shares 1,261,474 609,236
</TABLE>
See accompanying independent auditors' report.
42
<PAGE> 43
SCHEDULE 1
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(a) Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(C)
(B) DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE, (E)
BORROWER, LESSOR, RATE OF INTEREST, COLLATERAL (D) CURRENT
(A) OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
- ----- ----------------------------- ---------------------------- ------- ---------
<S> <C> <C> <C> <C>
COMMON STOCK
T R Fncl Corp Com Exch Roslyn Bancorp Inc @ 2.05 30,400 Shares 397,233 1,197,000
Teco Energy Inc. 636 Shares 15,158 17,916
Tellabs Inc. 450 Shares 30,754 30,853
Teradyne Inc. 9,700 Shares 266,791 411,038
Terex Corp. 27,800 Shares 543,464 794,038
Texas Ind Inc. 34,600 Shares 868,642 932,038
Texaco Inc. 872 Shares 50,644 46,085
Texarkana First Financial Corp. 200 Shares 2,950 4,625
Texas Instruments Inc. 390 Shares 23,060 33,369
Texas Pacific Land Trust 100 Shares 2,765 5,388
Texas Utils Co. 50 Shares 2,136 2,334
Thermo Electron Corp. 300 Shares 11,975 5,081
Tidewater Inc. 150 Shares 5,731 3,478
Time Warner Inc. 200 Shares 3,728 12,413
Timken Co. 100 Shares 1,570 1,888
Tokio Marine & Fire Ins. Co. 90 Shares 5,084 5,468
Tommy Hilfiger 500 Shares 29,220 30,000
Topps Inc. 150,000 Shares 602,368 750,000
Toys R Us Inc. 170 Shares 3,931 2,869
Transocean Offshore Inc. 625 Shares 26,180 16,758
Transworld Entmt Corp. 12,600 Shares 220,500 240,188
Tricon Global Restaurant Inc. 116 Shares 2,907 5,815
Trigon HealthCare Inc. 22,700 Shares 706,206 846,994
Trimble Nav Ltd 500 Shares 10,280 3,625
Trinity Inds. Inc. 20,000 Shares 535,429 770,000
TRW Inc. 300 Shares 14,235 16,856
Tyco International Ltd 475 Shares 15,536 35,833
UICI 468 Shares 11,795 11,466
Ultimate Software Group Inc 70,000 Shares 700,000 498,750
Ultramar-Diamond Shamrock Corp 100 Shares 3,549 2,425
Ultratech Stepper Inc. 3,000 Shares 53,340 48,000
Unicom Corp 280 Shares 6,782 10,798
Union Carbide Corp 49 Shares 2,071 2,093
Union Pacific Resources Group Inc. 50 Shares 2,243 2,253
Uniphase Corp. 8,300 Shares 284,250 575,813
United Asset Mgmt. Corp. 22,130 Shares 582,768 575,380
United Dominion Real Estate 600 Shares 7,386 6,188
United Healthcare Corp. 700 Shares 42,655 30,144
United Television Inc. 4,500 Shares 426,819 517,500
Universal Health Realty Income Trust 13,000 Shares 216,504 255,125
</TABLE>
See accompanying independent auditors' report.
43
<PAGE> 44
SCHEDULE 1
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(a) Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(C)
(B) DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE, (E)
BORROWER, LESSOR, RATE OF INTEREST, COLLATERAL (D) CURRENT
(A) OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
- ----- ----------------------------- ---------------------------- ---------- -----------
<S> <C> <C> <C> <C>
COMMON STOCK
Universal Health Services Inc. 30,000 Shares 523,288 1,556,250
US Filter Corp 2,450 Shares 57,100 56,044
US Surgical Corp Com Exch Tyco Intl Ltd Rt .7606 1 Share -- 39
US West Communications Group 300 Shares 10,526 19,388
US Wireless Data Inc. 5,000 Shares 30,105 14,063
USA Detergents Inc. 1,000 Shares 16,342 7,250
Utilicorp. United Inc. 725 Shares 21,954 26,605
Vasomedical Inc. 3,000 Shares 3,090 2,156
Vermont Financial Services Corp 24,000 Shares 396,258 798,000
Vintage Petroleum Inc. 800 Shares 15,131 6,900
Visible Genetics Inc. 400 Shares 2,573 4,550
Vitesse Semiconductor Corp. 325 Shares 12,025 14,828
Wabash National Corp. 400 Shares 6,630 8,125
Wachovia Corp. 600 Shares 47,021 52,463
Wade Cook Financial Corp. 4,000 Shares 11,918 1,760
Walgreen Co. 663 Shares 13,860 38,854
Wal-Mart Stores Inc. 629 Shares 25,017 51,263
Walt Disney Co. 5,294 Shares 152,454 158,827
Warner Lambert Co. 2,895 Shares 129,560 217,668
Washington Post Inc. 40 Shares 13,390 23,118
Waste Management Inc. 14,100 Shares 336,501 657,413
Weingarten Realty Investors 216 Shares 8,600 9,632
Weis Markets Inc. 12,000 Shares 339,587 466,500
Wells Fargo & Co. 1,200 Shares 21,954 47,925
Whitney Holding Corp. 14,000 Shares 437,862 525,450
Williams Co. 505 Shares 15,100 15,754
Wireless Telecom Group Inc. 300 Shares 2,907 563
World Access Inc. 2,750 Shares 50,065 58,781
Wrigley Inc. 181 Shares 10,159 16,206
WTR Corp. 12,365 Shares 818,583 1,078,816
Yahoo Inc. 70 Shares 7,178 16,586
Zebra Technologies Corp 1,110 Shares 38,289 31,913
Zweig Total Return Fund 478 Shares 4,183 4,242
---------- -----------
TOTAL 93,076,811 120,914,986
---------- -----------
INVESTMENT IN SECURITIES OF PARTICIPATING EMPLOYER
Phycor Inc. 860,124 Shares 16,637,322 5,859,595
---------- -----------
</TABLE>
See accompanying independent auditors' report.
44
<PAGE> 45
SCHEDULE 1
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(a) Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(C)
(B) DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE, (E)
BORROWER, LESSOR, RATE OF INTEREST, COLLATERAL (D) CURRENT
(A) OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
- ----- ----------------------------- ---------------------------- ---------- ---------
<S> <C> <C> <C> <C>
PREFERRED STOCK
Corning Del L P Monthly Inc Conv Pfd 302 Shares 18,854 21,113
Merrill Lynch PFD Cap TR I TR Originated 7.75% Pfd Stk 1,000 Shares 25,750 26,563
Merrill Lynch PFD Cap TR V TR Originated PFD Secs 2,000 Shares 50,500 51,500
Time Warner Cap. PFD 200 Shares 5,155 5,188
Sunamerica Cap. PFD 400 Shares 10,300 10,288
Venture Stores Inc. $3.25 Cum. Conv. 200 Shares 5,350 4
MFO Vanguard Pfd Stk Fund Open End Fund 3,262 Shares 33,955 33,269
--------- ---------
TOTAL 149,864 147,925
--------- ---------
GUARANTEED INSURANCE CONTRACTS
New England GIC Contract Policy # GA5273-5 6,221 Units 6,221 6,221
--------- ---------
LIFE INSURANCE POLICIES AND ANNUITIES AND OTHER
General Amer. Life Ins. Policy # 7030321 118,171 Units 118,171 226,774
General Amer. Life Ins. Policy # 7067797 113,600 Units 113,600 113,600
Guardian Modified Benefit Life Policy # 3309951 39,326 Units 37,587 39,326
Integrity Life Pennacle 2 Integrity 77,219 Units 77,219 77,219
Keyport Life Contract #0200491667 11,432 Units 11,432 13,094
Mass Mutual Policy # 7869421 177,635 Units 177,635 177,635
Mony Policy # 969-67-22 19,955 Units 19,955 19,955
Mony Policy #982-60-04 13,632 Units 13,632 13,632
New York Life Policy #44617983 79,349 Units 79,349 79,349
Northwestern Mutual Life 19,551 Units 19,551 19,551
Pacific Corinthian Annuity # 52684800V 55,200 Units 55,200 55,200
Security Life Policy # 1544121 33,990 Units 33,990 33,990
TransAmerica Life Policy # 92536319 97,080 Units 97,080 97,080
Trenton NJ US Govt Ser A HUD 7.12 GTD 10,000 Units 10,565 10,507
Uit Ft Unit 285 Dow Target 10 TR DEC 5,495 Units 51,599 52,422
--------- ---------
TOTAL 916,565 1,029,334
--------- ---------
LOANS TO PARTICIPANTS
Phycor Participant Loans 3,675,194 Units 3,675,194 3,675,194
--------- ---------
</TABLE>
See accompanying independent auditors' report.
45
<PAGE> 46
SCHEDULE 1
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(a) Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
(C)
(B) DESCRIPTION OF INVESTMENT
IDENTITY OF ISSUE, INCLUDING MATURITY DATE, (E)
BORROWER, LESSOR, RATE OF INTEREST, COLLATERAL (D) CURRENT
(A) OR SIMILAR PARTY PAR OR MATURITY VALUE COST VALUE
- ----- ----------------------------- ---------------------------- ----------- -----------
<S> <C> <C> <C> <C> <C>
PARTNERSHIP/JOINT VENTURE INTERESTS
America First Mtge LP 750 Units 15,501 15,501
American Cable TV Investors 30 Units 17,100 17,100
Bartlett Real Estate V 500 Units -- 233,415
Cable TV Fund 10 Units 1,494 1,494
Century Hillcrest Apt Investors LP 500 Units 1,463 1,463
Century Pension Income Fund XXIV 22 Units 10,328 10,328
ECI Telecom Ltd. 18,005 Units 462,702 598,000
Fifteenth & Central LLC 40,000 Units 40,000 40,000
Hutton/Con/AM Realty Investors II 40 Units 1,730 1,730
Hutton/Con/AM Realty Pension 46 Units 3,276 3,276
Mendik Real Estate LP 86 30 Units 709 709
Mendik Real Estate LP 87 40 Units 915 915
Participating Income PPTY 86 LP 15 Units 11,959 11,959
Resources Pension Shares 2,625 Units 9,200 2,625
Scottsdale Land Trust LP 10 Units 1,640 1,640
Seagram Co. Ltd. 14,000 Units 502,576 532,000
Silver Screen Ptrn. III 30 Units 1,646 1,646
Silver Screen Ptrn. IV 20 Units 3,724 3,724
SLH Participating Income PPTY II 20 Units 16,723 16,723
Uniprop MFG HSG Comm. LP 20 Units 18,175 18,175
Valco Ltd Partnership 1 Unit 14,340 14,340
MLP Pope Res Del Ltd Partnership Depos 27,500 Units 825,000 893,750
----------- -----------
Total 1,925,878 2,420,513
----------- -----------
TOTAL 420,804,525 456,444,029
=========== ===========
</TABLE>
See accompanying independent auditors' report.
46
<PAGE> 47
SCHEDULE 2
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(d) Schedule of Reportable Transactions
For year ended December 31, 1998
Single transactions with respect to any Plan assets in excess of 5% of Plan
assets at beginning of Plan year [DOL REG. 2520, 103-6(c)(i)]
There were no type (i) transactions during the year ended December 31,
1998.
See accompanying independent auditors' report.
47
<PAGE> 48
SCHEDULE 3
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(d) Schedule of Reportable Transactions
For year ended December 31, 1998
Series of transactions with the same person (Other than with respect to
securities) in excess of 5% of Plan assets at beginning of Plan year [DOL REG.
2520, 103-6(c)(ii)]
There were no type (ii) transactions during the year ended December 31,
1998.
See accompanying independent auditors' report.
48
<PAGE> 49
SCHEDULE 4
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(d) Schedule of Reportable Transactions
For year ended December 31, 1998
Series of transactions involving securities of the same issue in excess of 5% of
Plan assets at beginning of Plan year [DOL REG. 1510, 103-6(c)(iii)]
<TABLE>
<CAPTION>
CURRENT VALUE REALIZED
OF ASSET ON NET GAIN
IDENTITY OF DESCRIPTION PURCHASE SALE COST OF TRANSACTION OR
PARTY INVOLVED OF ASSET PRICE PRICE ASSET DATE (LOSS)
- -------------- --------------------- ------------ ----------- ----------- ------------- --------
<S> <C> <C> <C> <C> <C> <C>
NorthernTrust Collective Short-Term
Investment Fund $165,543,562 -- 165,543,562 165,543,562 --
NorthernTrust Collective Short-Term
Investment Fund -- 166,192,287 166,192,287 166,192,287 --
NorthernTrust Collective Daily
Stock Index Fund 15,118,589 -- 15,118,589 15,118,589 --
NorthernTrust Collective Daily
Stock Index Fund -- 6,915,601 6,393,837 6,915,625 521,764
NorthernTrust Collective Stable
Asset Fund 28,176,145 -- 28,176,145 28,176,145 --
NorthernTrust Collective Stable
Asset Fund -- 21,600,967 20,636,304 20,636,304 964,683
NorthernTrust Northern Institutional
Bond Portfolio 27,281,289 -- 27,281,289 27,281,289 --
NorthernTrust Northern Institutional
Bond Portfolio -- 18,797,927 16,507,731 16,507,731 2,290,197
NorthernTrust Franklin Strategic
Small Cap Growth Fund 32,231,610 -- 32,231,610 32,231,610 --
NorthernTrust Franklin Strategic
Small Cap Growth Fund -- 18,637,066 17,743,475 17,743,475 893,591
NorthernTrust MFS Research Fund 17,950,063 -- 17,950,063 17,950,063 --
NorthernTrust MFS Research Fund -- 15,444,015 8,306,721 11,875,373 3,568,642
NorthernTrust Neuberger & Berman
Partner Trust Fund 20,700,746 -- 20,700,746 20,700,746 --
NorthernTrust Neuberger & Berman
Partner Trust Fund -- 23,171,519 22,316,673 22,316,673 854,846
NorthernTrust Schwab Family
Money Market Fund 35,266,150 -- 35,266,150 35,266,150 --
NorthernTrust Schwab Family
Money Market Fund -- 32,188,335 32,188,335 32,188,335 --
NorthernTrust Templeton
Foreign Fund 29,820,176 -- 29,820,176 29,820,176 --
NorthernTrust Templeton
Foreign Fund -- 9,083,279 8,498,520 8,498,520 584,759
</TABLE>
See accompanying independent auditors' report.
49
<PAGE> 50
SCHEDULE 5
PHYCOR, INC. SAVINGS AND PROFIT SHARING PLAN
Item 27(d) Schedule of Reportable Transactions
For year ended December 31, 1998
Single transactions with any person with respect to securities in excess of 5%
of Plan assets at beginning of Plan year [DOL REG. 2520, 103-6(c)(iv)]
There were no reportable type (iv) transactions during the year ended December
31, 1998.
See accompanying independent auditors' report.
50
<PAGE> 51
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.
PhyCor, Inc. Savings and Profit Sharing Plan
June 29, 1999 /s/ John K. Crawford
--------------------------------------------
John K. Crawford
Chief Financial Officer
<PAGE> 52
EXHIBIT INDEX
1. EX-23 Independent Auditors' Consent
<PAGE> 1
EXHIBIT 23
CONSENT OF INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
The Board of Directors
PhyCor, Inc.:
We consent to incorporation by reference in the registration statement No.
33-85726 on Form S-8 of PhyCor, Inc. of our report dated June 18, 1999 relating
to the statements of net assets available for plan benefits of the PhyCor, Inc.
Savings and Profit Sharing Plan as of December 31, 1998 and 1997 and the related
statements of changes in net assets available for plan benefits for the years
then ended, and the related supplementary schedules, which report appears in the
December 31, 1998 annual report on Form 11-K of the PhyCor, Inc. Savings and
Profit Sharing Plan.
Nashville, Tennessee /S/ KPMG LLP
June 29, 1999
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