<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------
FORM 11-K
PURSUANT TO SECTION 15 (D) OF THE
SECURITIES EXCHANGE ACT OF 1934
---------------
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15 (D) OF THE SECURITIES
EXCHANGE ACT OF 1934 [FEE REQUIRED]
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1996
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 NO. 0-25078
A. FULL TITLE OF THE PLAN
PHAMIS INC. SALARY SAVINGS AND DEFERRAL PLAN
B. NAME OF THE ISSUER OF THE SECURITIES HELD PURSUANT TO THE PLAN AND THE
ADDRESS OF ITS PRINCIPAL EXECUTIVE OFFICE:
PHAMIS INC.
1001 FOURTH AVENUE PLAZA
SUITE 1500
SEATTLE, WA 98154-1144
<PAGE>
REQUIRED INFORMATION
FINANCIAL STATEMENTS AND EXHIBIT
<TABLE>
<CAPTION>
<S> <C>
Item (4) (a) Independent Auditors' Report
Financial Statements:
Statements of Net Assets Available for Benefits,
December 31, 1996 and 1995
Statements of Changes in Net Assets Available for Benefits,
Years ended December 31, 1996 and 1995
Notes to Financial Statements
Schedule 1-Line 27a - Schedule of Assets Held for
Investment Purposes, December 31, 1996
Schedule 2-Line 27d - Schedule of Reportable
Transactions, Year ended December 31, 1996
(b) Exhibit 23:
Consent of Independent Certified Public Accountants
</TABLE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees have duly caused this annual report to be signed by the undersigned on
their behalf hereunto duly authorized.
PHAMIS Inc. Salary Savings and Deferral Plan
Date: June 27, 1997 By: /s/ Gregg W. Blodgett
------------- -------------------------
Gregg W. Blodgett
Vice President, Finance, CFO and Treasurer
2
<PAGE>
INDEX OF FINANCIAL STATEMENTS AND EXHIBIT
<TABLE>
<CAPTION>
<S> <C> <C>
SEQUENTIALLY
ITEM DESCRIPTION NUMBERED PAGE
- ------- --------------------------------------------------- -------------
4 (a) Independent Auditors' Report 4
Financial Statements:
Statements of Net Assets Available for Benefits, 5
December 31, 1996 and 1995
Statements of Changes in Net Assets Available 6
for Benefits, Years ended December 31, 1996 and 1995
Notes to Financial Statements 7-16
Schedule 1-Line 27a - Schedule of Assets Held for 17
Investment Purposes, December 31, 1996
Schedule 2-Line 27d - Schedule of Reportable 18
Transactions, Year ended December 31, 1996
(b) Exhibit 23:
Consent of Independent Certified Public Accountants 19
</TABLE>
3
<PAGE>
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
Plan Administration Committee
PHAMIS Inc.
Salary Savings and Deferral Plan:
We have audited the accompanying statements of net assets available for benefits
of PHAMIS Inc. Salary Savings and Deferral Plan (Plan) as of December 31, 1996
and 1995, and the related statements of changes in net assets available for
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 benefits as of December 31,
1996 and 1995, and the changes in net assets available for benefits for the
years then ended in conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
held for investment purposes at December 31, 1996 and reportable transactions
for the year ended December 31, 1996 are presented for the purpose of additional
analysis and are not a required part of the basic financial statements but are
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The supplemental schedules have been subjected to the
auditing procedures applied in the audit 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.
/s/ KPMG Peat Marwick LLP
Seattle, Washington
June 20, 1997
4
<PAGE>
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
Statements Of Net Assets Available For Benefits
DECEMBER 31, 1996 AND 1995
<TABLE>
<CAPTION>
<S> <C> <C>
- -----------------------------------------------------------------
1996 1995
- -----------------------------------------------------------------
Investments at fair value:
Money market funds $ 31,477 186,806
Common stock 1,763,334 3,795,029
Mutual funds 5,562,900 2,984,572
Self-directed investments of participants 537,365 1,242,024
Loans to participants 341,532 120,562
-----------------------
8,236,608 8,328,993
-----------------------
Receivables:
Sponsor 20,020 23,209
Participants 93,355 37,100
Other 25,664 3,227
-----------------------
139,039 63,536
-----------------------
Accrued interest 100,782 --
- ------------------------------------------------------------------
Net assets available for benefits $ 8,476,429 8,392,529
- ------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
Statements Of Changes In Net Assets Available For Benefits
Years Ended December 31, 1996 And 1995
<TABLE>
<CAPTION>
<S> <C> <C>
- ----------------------------------------------------------------------------------------------
1996 1995
- ----------------------------------------------------------------------------------------------
Additions to net assets available for benefits attributed to:
Investment income:
Dividends $ 172,477 230,279
Interest 55,722 35,068
Net appreciation (depreciation) in fair value of investments:
Common stock (2,138,510) 806,756
Mutual funds 336,046 367,555
Self-directed investments of participants 274,014 213,519
-------------------------
(1,528,450) 1,387,830
------------------------
(1,300,251) 1,653,177
------------------------
Contributions:
Sponsor 319,578 164,885
Participants 1,375,476 1,072,110
Rollovers 262,828 134,989
------------------------
1,957,882 1,371,984
------------------------
Transfer from PHAMIS Inc. Employee Stock Ownership Plan -- 1,930,445
------------------------
Total additions 657,631 4,955,606
Deductions from net assets available for benefits attributed to
benefits paid to participants 573,731 152,017
------------------------
Net increase in net assets available for benefits 83,900 4,803,589
Net assets available for benefits at beginning of year 8,392,529 3,588,940
- ----------------------------------------------------------------------------------------------
Net assets available for benefits at end of year $ 8,476,429 8,392,529
- ----------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
Notes To Financial Statements
December 31, 1996 and 1995
- --------------------------------------------------------------------------------
(1) DESCRIPTION OF PLAN
The following description of the PHAMIS Inc. Salary Savings and Deferral
Plan (Plan) provides only general information. Participants should refer to
the Plan document for a more complete description of the Plan's provisions.
(a) General
The Plan is a defined contribution plan established in 1984 to provide
a deferred income savings plan for employees of PHAMIS, Inc.
(Sponsor). The Plan's provisions permit tax deferred contributions by
participants pursuant to section 401(k) of the Internal Revenue Code.
The Plan is subject to the provisions of the Employee Retirement
Income Security Act of 1974 (ERISA).
Effective October 1, 1995, the PHAMIS Inc. Employee Stock Ownership
Plan (ESOP) merged with the Plan.
(b) Plan Administration
The Sponsor is the Plan administrator and has appointed an
administrative committee to administer the Plan. The assets of the
Plan are held by Northwestern Trust and Investors Advisory Company
(Northwestern Trust) which also serves as trustee of the Plan. Through
December 31, 1995, the assets of the Plan were held by Smith Barney,
Inc. Certain services are performed by Howard Johnson & Company based
upon information provided by the Plan administrator. Administrative
expenses of the Plan are paid by the Sponsor.
(c) Eligibility, Contributions and Participant Accounts
All non-union employees of the Sponsor, who are age 18 or older, are
eligible to participate in the Plan after completing one hour of
service, and become eligible for the employer matching contribution on
the first day of the calendar quarter immediately following completion
of one year of service (defined as a Plan year during which a
participant completes at least 1,000 hours of service). All eligible
employees of the Sponsor are participants in the Plan whether or not
actual contributions are made.
Participants may contribute between 1% and 15% of their pretax salary,
limited by the Internal Revenue Code to $9,500 and $9,240 in 1996 and
1995, respectively. Through December 31, 1995, pretax contributions
were matched by the employer at 50% up to $1,000 per employee per
year. Effective January 1, 1996, the maximum matching contribution
increased to $1,500 per employee per year.
(d) Vesting
Participants are immediately vested in their contributions, the
employer matching contributions and the earnings thereon.
7
<PAGE>
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
Notes to Financial Statements
- -------------------------------------------------------------------------------
(1)
(e) Investment Options
Participants have the option of directing their contributions in 1%
increments into any one or more of the Plan's investment options. The
employer matching contributions consist of PHAMIS, Inc.'s common stock
only and will be required to remain in the PHAMIS, Inc. Stock Fund
until termination of employment, disability or death.
A description of each of the available funds as of December 31, 1996
follows:
o PHAMIS, Inc. Stock Fund -- Invests in PHAMIS, Inc. common stock.
Effective January 1, 1995, participants are allowed to allocate up
to 100% of their contributions to this fund.
o Bond Fund Of America -- Invests at least 60% of its assets in
securities rated A or better by Moody's or Standard & Poor's bond
rating services and can invest in lower rated, higher risk
securities when appropriate, as well as in non-U.S. bonds.
o Washington Mutual Investors Fund -- Seeks current income and an
opportunity for growth of principal consistent with sound common
stock investing. The fund invests only in companies which satisfy
certain specifications regarding earnings, dividends, capital and
liquidity.
o AIM Limited Maturity Treasury -- Invests in a diversified
portfolio of short-term U.S. Government Securities.
o AIM Value Fund -- Invests in stocks of companies of various sizes,
focusing on companies with above average earnings growth that are
selling at or below market prices.
o Kaufmann Fund -- Invests in a diversified portfolio of small
company stocks. These investments generally assume higher risk in
exchange for the opportunity of higher returns.
o Templeton Foreign Fund -- Invests in the stocks of foreign
companies in both developed and underdeveloped countries.
o Loan Fund -- Allows participants to borrow up to 50% of their
total account balance subject to certain limitations.
Participants may change their investment options quarterly.
(Continued)
8
<PAGE>
Notes to Financial Statements
- --------------------------------------------------------------------------------
Through March 31, 1996, participants were allowed a self-directed
investment option where investments were made at the participant's
discretion. Effective April 1, 1996, the Sponsor eliminated the self-
directed investment option. Participants with self-directed
investments must transfer their investments into one or more of the
remaining available funds. Investments remaining in self-directed
investments at December 31, 1996 will be transferred in 1997.
On a quarterly basis, each participant's account is credited for an
allocation of each investment fund's earnings based on the
participant's weighted average account balance in each fund for the
quarter. Self-directed accounts are credited with the actual earnings
from the participant's investments.
(f) Participant Notes Receivable
Participants may borrow from their fund accounts a minimum of $1,000
up to a maximum of 50% of their account balance. Loan transactions are
treated as a transfer to (from) the investment fund from (to) the Loan
Fund. Loan terms range from 1 to 5 years or up to 30 years for the
purchase of a primary residence. The loans are secured by the balance
in the participant's account and bear interest at a rate of prime plus
1%. Principal and interest is paid ratably through monthly payroll
deductions. Effective April 1, 1996, participants are limited to two
outstanding loans at any point in time.
(g) Payment Of Benefits
Participants are eligible to receive distributions upon termination of
employment, upon becoming permanently disabled, upon retirement, or
upon request for a hardship withdrawal prior to termination.
Distributions are paid in a single lump sum or, if the account balance
exceeds $3,500 and at the participant's election, by payment in
monthly, quarterly or annual installments over a fixed reasonable
period of time not to exceed the combined life expectancy of the
participant and beneficiary.
(h) Forfeited Accounts
Amounts forfeited by participants in the ESOP who had terminated
employment prior to the merger of the ESOP with the Plan may be
reinstated upon reemployment by the Sponsor within five years of the
date of termination or withdrawal from the Plan as provided by the
Plan. Otherwise, the forfeitures will be reallocated to the remaining
participants. Forfeitures subject to reinstatement under this
provision were $18,777 and $13,007 at December 31, 1996 and 1995,
respectively.
9
<PAGE>
PHAMIS, INC.
SALARY SAVINGS AND DEFERRAL PLAN
Notes to 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) Use Of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles and the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement
Income Security Act of 1974 requires the use of estimates and
assumptions that affect the reported amounts and disclosure of
contingent liabilities in the accompanying financial statements and
supplemental schedules. Actual results could differ from those
estimates.
(c) Investment Valuation And Income Recognition
Investments other than loans to participants are stated at fair value
based on quoted market prices. Loans to participants are valued at
cost, which approximates fair value.
Net appreciation or depreciation includes both realized and unrealized
gains and losses. Purchases and sales of investments are recorded on a
trade-date basis.
(3) Plan Termination
Although it has not expressed an intent to do so, the Sponsor has the right
under the Plan to discontinue matching contributions or to terminate the
Plan at any time subject to the provisions of ERISA. If terminated, Plan
assets would be distributed to participants according to their account
balances.
(4) Reconciliation Of Financial Statements To Form 5500
The following is a reconciliation of net assets available for benefits per
the financial statements to the Form 5500 at December 31:
<TABLE>
<CAPTION>
<S> <C> <C>
1996 1995
----------------------
Net assets available for benefits per
the financial statements $ 8,476,429 8,392,529
Amounts allocated to withdrawing participants -- (5,110)
----------------------
Net assets available for benefits
benefits per the Form 5500 $ 8,476,429 8,387,419
----------------------
</TABLE>
10
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
The following is a reconciliation of benefits paid to participants per the
financial statements to the Form 5500 for the year ended December 31:
<TABLE>
<CAPTION>
1996 1995
-------------------
<S> <C> <C>
Benefits paid to participants per the financial statements $ 573,731 152,017
Amounts allocated to withdrawing participants
at December 31, 1995 (5,110) 5,110
-------------------
Benefits paid to participants per the Form 5500 $ 568,621 157,127
-------------------
</TABLE>
Amounts allocated to withdrawing participants are recorded on the Form 5500
for benefit claims that have been processed and approved for payment prior
to December 31 but not yet paid as of that date.
(5) Tax Status
The Internal Revenue Service has determined and informed the Sponsor by a
letter dated September 20, 1995 that the Plan and related trust are
designed in accordance with applicable sections of the Internal Revenue
Code (IRC). The Plan has been amended since receiving the determination
letter. However, the Plan administrator believes that the Plan is designed
and is currently being operated in compliance with the applicable
requirements of the IRC.
(6) Investments
The following table presents the assets held for investment purposes at
December 31:
<TABLE>
<CAPTION>
1996 1995
----------------------------------------------
Principal Principal
amount or Invest- amount or Invest-
number of ment number of ment
shares value shares value
----------------------------------------------
<S> <C> <C> <C> <C>
Money market funds:
Fidelity Institutional Cash Domestic Money
Market Class I 31,477 $ 31,477 -- $ --
Smith Barney, Inc. Money Funds Inc.
Cash Portfolio -- -- 186,806 186,806
----------------------------------------------
Total money market funds 31,477 31,477 186,806 186,806
----------------------------------------------
Common stock - PHAMIS, Inc. 136,958 1,763,334 127,564 3,795,029
----------------------------------------------
Mutual funds:
Bond Fund of America 22,666 319,282 21,433 297,488
Growth Fund of America -- -- 55,362 1,690,764
Washington Mutual Investors Fund 58,904 1,489,042 45,349 996,320
AIM Limited Maturity Fund 55,250 554,157 -- --
AIM Value Fund 71,937 2,080,413 -- --
Kaufmann Fund 129,703 757,467 -- --
Templeton Foreign Fund 34,994 362,539 -- --
----------------------------------------------
Total mutual funds 373,454 5,562,900 122,144 2,984,572
----------------------------------------------
Self-directed investments of participants 537,365 1,242,024
Loans to participants 341,532 120,562
----------- -----------
Total investments $ 8,236,608 $ 8,328,993
----------- -----------
</TABLE>
11
<PAGE>
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
Notes To Financial Statements
- --------------------------------------------------------------------------------
(7) Net Assets Available For Benefits And Changes In Net Assets Available For
Benefits By Fund
Net assets available for benefits as of December 31 and changes in net
assets available for benefits for the years then ended are allocated by
fund as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1996
-------------------------------------------------------------------------------------------------------
PHAMIS, Washington AIM
Inc. Bond Mutual Limited Templeton Self-
Stock Fund of Investors Maturity AIM Value Kaufmann Foreign Directed Loan
Fund America Fund Fund Fund Fund Fund Fund Fund Total
-------------------------------------------------------------------------------------------------------
Investments at fair value:
Money market funds $ 31,477 -- -- -- -- -- -- -- -- 31,477
Common stock 1,763,334 -- -- -- -- -- -- -- -- 1,763,334
Mutual funds -- 319,282 1,489,042 554,157 2,080,413 757,467 362,539 -- -- 5,562,900
Self-directed investments
of participants -- -- -- -- -- -- -- 537,365 -- 537,365
Loans to participants -- -- -- -- -- -- -- -- 341,532 341,532
-------------------------------------------------------------------------------------------------------
1,794,181 319,282 1,489,042 554,157 2,080,413 757,467 362,539 537,365 341,532 8,236,608
-------------------------------------------------------------------------------------------------------
Receivables:
Sponsor 20,020 -- -- -- -- -- -- -- -- 20,020
Participants 13,256 5,027 20,772 4,583 27,028 15,052 7,637 -- -- 93,355
Other 8,993 3,343 1,308 -- 3,027 5,673 3,320 -- -- 25,664
-------------------------------------------------------------------------------------------------------
42,269 8,370 22,080 4,583 30,055 20,725 10,957 -- -- 139,039
-------------------------------------------------------------------------------------------------------
Accrued interest 26 -- 10,691 -- 86,892 -- -- -- 3,173 100,782
-------------------------------------------------------------------------------------------------------
Net assets available
for benefits $ 1,837,106 327,652 1,521,813 558,740 2,197,360 778,192 373,496 537,365 344,705 8,476,429
-------------------------------------------------------------------------------------------------------
(Continued)
</TABLE>
12
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Changes in net assets available for benefits by fund for the year ended December
31 follow:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996
----------------------------------------------------------------------------------------------
PHAMIS, Washington AIM
Money Inc. Bond Fund Growth Mutual Limited AIM
Market Stock of Fund of Investors Maturity Value Kaufmann
Fund Fund America America Fund Fund Fund Fund
----------------------------------------------------------------------------------------------
Additions to net assets available for
benefits attributed to:
Investment income:
Dividends $ -- -- 22,815 -- 32,084 6,009 85,921 17,092
Interest 1,229 (460) -- -- -- -- -- --
Net appreciation
(depreciation) in fair
value of investments:
Common stock -- (2,138,510) -- -- -- -- -- --
Mutual funds -- -- (3,917) 58,445 131,976 73 110,552 23,106
Self-directed investments
of participants -- -- -- -- -- -- -- --
----------------------------------------------------------------------------------------------
-- (2,138,510) (3,917) 58,445 131,976 73 110,552 23,106
----------------------------------------------------------------------------------------------
1,229 (2,138,970) 18,898 58,445 164,060 6,082 196,473 40,198
----------------------------------------------------------------------------------------------
Contributions:
Sponsor -- 319,578 -- -- -- -- -- --
Participants 15,999 138,064 82,865 158,389 323,971 49,951 318,046 156,626
Rollovers 3,659 17,738 15,639 36,557 64,194 50 41,113 41,059
----------------------------------------------------------------------------------------------
19,658 475,380 98,504 194,946 388,165 50,001 359,159 197,685
----------------------------------------------------------------------------------------------
Total additions 20,887 (1,663,590) 117,402 253,391 552,225 56,083 555,632 237,883
Net interfund transfers (196,897) 2,029,921 (40,863) (1,936,611) 50,339 535,454 1,721,976 550,505
Deductions from net assets
available for benefits attributed
to benefits paid to participants 3,804 265,565 50,048 22,374 86,518 32,797 80,248 10,196
----------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets available
for benefits (179,814) 100,766 26,491 (1,705,594) 516,046 558,740 2,197,360 778,192
Net assets available for benefits at
beginning of year 179,814 1,736,340 301,161 1,705,594 1,005,767 -- -- --
----------------------------------------------------------------------------------------------
Net assets available for benefits at
end of year $ -- 1,837,106 327,652 -- 1,521,813 558,740 2,197,360 778,192
----------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
1996
----------------------------------------------------------------------------------------------
Templeton Self-
Foreign Directed Loan ESOP
Fund Fund Fund Fund Total
----------------------------------------------------------------------------------------------
Additions to net assets available for
benefits attributed to:
Investment income:
Dividends $ 8,556 -- -- -- 172,477
Interest -- 29,539 25,414 -- 55,722
Net appreciation
(depreciation) in fair
value of investments:
Common stock -- -- -- -- (2,138,510)
Mutual funds 15,811 -- -- -- 336,046
Self-directed investments
of participants -- 274,014 -- -- 274,014
----------------------------------------------------------------------------------------------
15,811 274,014 -- -- (1,528,450)
----------------------------------------------------------------------------------------------
24,367 303,553 25,414 -- (1,300,251)
----------------------------------------------------------------------------------------------
Contributions:
Sponsor -- -- -- -- 319,578
Participants 80,364 51,201 -- -- 1,375,476
Rollovers 24,717 16,680 1,422 -- 262,828
----------------------------------------------------------------------------------------------
105,081 67,881 1,422 -- 1,957,882
----------------------------------------------------------------------------------------------
Total additions 129,448 371,434 26,836 -- 657,631
Net interfund transfers 246,374 (1,061,573) 199,301 (2,097,926) --
Deductions from net assets
available for benefits attributed
to benefits paid to participants 2,326 17,861 1,994 -- 573,731
----------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets available
for benefits 373,496 (708,000) 224,143 (2,097,926) 83,900
Net assets available for benefits at
beginning of year -- 1,245,365 120,562 2,097,926 8,392,529
----------------------------------------------------------------------------------------------
Net assets available for benefits at
end of year $ 373,496 537,365 344,705 -- 8,476,429
----------------------------------------------------------------------------------------------
(Continued)
</TABLE>
13
<PAGE>
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
Notes To Financial Statements
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1995
----------------------------------------------------------------------------------------------------
PHAMIS, Washington
Money Inc. Bond Fund Growth Mutual Self-
Market Stock of Fund of Investors Directed Loan ESOP
Fund Fund America America Fund Fund Fund Fund Total
----------------------------------------------------------------------------------------------------
Investments at fair value:
Money market funds $ 177,886 8,888 -- 7 10 -- -- 15 186,806
Common stock -- 1,697,118 -- -- -- -- -- 2,097,911 3,795,029
Mutual funds -- -- 297,488 1,690,764 996,320 -- -- -- 2,984,572
Self-directed investments of -- -- -- -- -- 1,242,024 -- -- 1,242,024
participants
Loans to participants -- -- -- -- -- -- 120,562 -- 120,562
----------------------------------------------------------------------------------------------------
177,886 1,706,006 297,488 1,690,771 996,330 1,242,024 120,562 2,097,926 8,328,993
----------------------------------------------------------------------------------------------------
Receivables:
Sponsor -- 23,209 -- -- -- -- -- -- 23,209
Participants 1,909 5,944 3,601 14,040 9,213 2,393 -- -- 37,100
Other 19 1,181 72 783 224 948 -- -- 3,227
----------------------------------------------------------------------------------------------------
1,928 30,334 3,673 14,823 9,437 3,341 -- -- 63,536
----------------------------------------------------------------------------------------------------
Net assets available
for benefits $ 179,814 1,736,340 301,161 1,705,594 1,005,767 1,245,365 120,562 2,097,926 8,392,529
----------------------------------------------------------------------------------------------------
(Continued)
</TABLE>
14
<PAGE>
Notes To Financial Statements
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1995
----------------------------------------------------------------------------------------------------
PHAMIS, Washington
Money Inc. Bond Fund Growth Mutual Self-
Market Stock of Fund of Investors Directed Loan ESOP
Fund Fund America America Fund Fund Fund Fund Total
----------------------------------------------------------------------------------------------------
Additions to net assets available
for benefits attributed to:
Investment income:
Dividends $ -- -- 19,083 129,501 69,915 11,780 -- -- 230,279
Interest 8,083 2,417 -- -- -- 11,420 13,148 -- 35,068
Net appreciation in fair
value of investments:
Common stock -- 639,275 -- -- -- -- -- 167,481 806,756
Mutual funds -- -- 21,409 173,247 172,899 -- -- -- 367,555
Self-directed investments of
participants -- -- -- -- -- 213,519 -- -- 213,519
----------------------------------------------------------------------------------------------------
-- 639,275 21,409 173,247 172,899 213,519 -- 167,481 1,387,830
----------------------------------------------------------------------------------------------------
8,083 641,692 40,492 302,748 242,814 236,719 13,148 167,481 1,653,177
----------------------------------------------------------------------------------------------------
Contributions:
Sponsor -- 164,885 -- -- -- -- -- -- 164,885
Participants 62,004 202,889 97,865 381,499 222,905 104,948 -- -- 1,072,110
Rollovers 7,588 11,272 5,254 44,498 54,122 12,255 -- -- 134,989
----------------------------------------------------------------------------------------------------
69,592 379,046 103,119 425,997 277,027 117,203 -- -- 1,371,984
----------------------------------------------------------------------------------------------------
Transfer from PHAMIS Inc. -- -- -- -- -- -- -- 1,930,445 1,930,445
Employee Stock Ownership Plan
----------------------------------------------------------------------------------------------------
Total additions 77,675 1,020,738 143,611 728,745 519,841 353,922 13,148 2,097,926 4,955,606
Net interfund transfers (6,498) 48,376 (17,202) (7,765) (33,178) 41,027 (24,760) -- --
Deductions from net assets
available for benefits attributed
to benefits paid to participants 41,662 11,344 -- 13,578 4,134 81,299 -- -- 152,017
----------------------------------------------------------------------------------------------------
Net increase (decrease) 29,515 1,057,770 126,409 707,402 482,529 313,650 (11,612) 2,097,926 4,803,589
in net assets available
for benefits
Net assets available for 150,299 678,570 174,752 998,192 523,238 931,715 132,174 -- 3,588,940
benefits at beginning of year ----------------------------------------------------------------------------------------------------
Net assets available for $ 179,814 1,736,340 301,161 1,705,594 1,005,767 1,245,365 120,562 2,097,926 8,392,529
benefits at end of year ----------------------------------------------------------------------------------------------------
(Continued)
</TABLE>
15
<PAGE>
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
Notes To Financial Statements
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(8) Subsequent Events
On March 20, 1996, the Sponsor acquired DataBreeze, Inc., which became a
wholly-owned subsidiary of the Sponsor. On April 30, 1997, the DataBreeze,
Inc. 401(k) Plan merged with the Plan. On the date of the merger the
DataBreeze, Inc. 401(k) Plan had assets available for benefits of
approximately $260,000.
On March 25, 1997, the Sponsor entered into a merger agreement with IDX
Systems Corporation (IDX). As a result of the merger agreement, on the
closing date of the merger between IDX and the Sponsor, which is
anticipated to be July 11, 1997, all existing balances in the PHAMIS, Inc.
Stock Fund will be converted to IDX common stock at the exchange ratio used
to effect the merger. The PHAMIS, Inc. Stock Fund will be replaced by the
IDX Systems Corporation Stock investment option. Additionally, subsequent
to the closing date of the merger, the employer matching contribution will
consist of cash and will be allocated among investment options based on the
participants selections.
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PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
Line 27a - Schedule Of Assets Held For Investment Purposes
December 31, 1996
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<TABLE>
<CAPTION>
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Identity of issue, Description of investment, including
borrower, lessor, or maturity date, rate of interest Current
similar party collateral, par or maturity value Cost value
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<S> <C> <C> <C>
American Funds Bond Fund of America, 22,666 shares $ 315,037 319,282
American Funds Washington Mutual Investors Fund,
58,904 shares 1,224,375 1,489,042
Fidelity Management Fidelity Institutional Cash Domestic
and Research Money Market Class I, 31,477 shares 31,477 31,477
AIM Investment AIM Limited Maturity Treasury,
Securities Funds 55,250 shares 554,001 554,157
AIM Investment AIM Value Fund,
Securities Funds 71,937 shares 1,972,162 2,080,413
Kaufmann Funds, Inc. Kaufmann Fund, 129,703 shares 742,178 757,467
Franklin Templeton Templeton Foreign Fund, 34,994 shares 347,787 362,539
Group
* PHAMIS, Inc. Common stock, 136,958 shares 1,158,165 1,763,334
Various Self-directed investments of participants 339,730 537,365
Various Participant loans, 7% to 10% -- 341,532
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</TABLE>
* Party-in-interest of the Plan as defined by Section 3(14) of ERISA.
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Schedule 2
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PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
Line 27d - Schedule Of Reportable Transactions(1)
Year Ended December 31, 1996
<TABLE>
<CAPTION>
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Current value
of asset on Net
Identity of party Purchase Selling Cost of transaction gain or
involved Description of asset price price asset date (loss)
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<S> <C> <C> <C> <C> <C> <C>
Individual transactions:
AIM Investment Securities Funds AIM Value Fund $1,850,822 - 1,850,822 1,850,822 -
American Funds Growth Fund of America - 1,823,969 1,711,280 1,823,969 112,689
Series of transactions:
Kaufmann Fund, Inc. Kaufmann Fund 770,305 - 770,305 770,305 -
Kaufmann Fund, Inc. Kaufmann Fund - 30,406 28,126 30,406 2,280
AIM Investment Securities Funds AIM Value Fund 2,318,968 - 2,318,968 2,318,968 -
AIM Investment Securities Funds AIM Value Fund - 350,324 346,806 350,324 3,518
AIM Investment Securities Funds AIM Limited Maturity
Treasury Shares 613,302 - 613,302 613,302 -
AIM Investment Securities Funds AIM Limited Maturity
Treasury Shares - 59,178 59,301 59,178 (123)
American Funds Growth Fund of America 319,557 - 319,557 319,557 -
American Funds Growth Fund of America - 1,979,494 1,857,173 1,979,494 122,321
American Funds Washington Mutual
Investors Fund 489,537 - 489,537 489,537 -
American Funds Washington Mutual
Investors Fund - 169,307 117,297 169,307 52,010
PHAMIS, Inc. Common Stock 457,569 - 457,569 457,569 -
PHAMIS, Inc. Common Stock - 623,115 169,808 623,115 453,307
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</TABLE>
(1) Reportable transactions as defined in the Department of Labor's reporting
regulations consist of (a) a single transaction in excess of 5% of the
current value of Plan assets, (b) a series of transactions with or in
conjunction with the same person, involving property other than securities,
which amount in the aggregate to more than 5% of the current value of Plan
assets, (c) a series of transactions with respect to securities of the same
issue which amount in the aggregate to more than 5% of the current value of
total Plan assets and (d) any transaction with respect to securities with or
in conjunction with a person if a prior or subsequent single transaction has
occurred with respect to securities with or in conjunction with that same
person in an amount in excess of 5% of the current value of Plan assets.
The current value of Plan assets, to apply the definition of reportable
transactions, is determined at the beginning of the Plan year.
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EXHIBIT 23
CONSENT OF INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
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The Board Of Directors
PHAMIS, Inc.:
We consent to incorporation by reference in the registration statement (No. 33-
87798) on Form S-8 of PHAMIS Inc. of our report dated June 20, 1997 relating to
the Statements of Net Assets Available for Benefits of PHAMIS Inc. Salary
Savings and Deferral Plan as of December 31, 1996 and 1995, and the Statements
of Changes in Net Assets Available for Benefits for the years then ended, and
the related supplementary schedules as of and for the year ended December 31,
1996, which report appears in the December 31, 1996 annual report on Form 11-K
of PHAMIS Inc. Salary Savings and Deferral Plan.
/s/ KPMG Peat Marwick LLP
Seattle, Washington
June 27, 1997
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