The ABCs of systemic healthcare reform - Cerner Corporation

More documents

Recommendations

Info

Restricted Stock Grants A summary of the Company’s restricted stock grants during 2008, 2007, and 2006 are presented below: All grants were valued at the fair market value on the date of grant and vest provided the recipient has continuously served on the Board of Directors through such vesting date or in the case of an associate provided that performance measures are attained. The expense associated with these grants is being recognized over the period from the date of grant to the vesting date. The Company recognized expenses related to the restricted stock of $852,000, $887,000, and $853,000 in 2008, 2007 and 2006, respectively. Nonvested Shares A summary of the Company’s nonvested restricted stock compensation arrangements granted under all plans as of January 3, 2009 is presented below: As of January 3, 2009, there was $42,984,000 of total unrecognized compensation cost related to nonvested share-based compensation arrangements (including stock option and nonvested share awards) granted under all plans. That cost is expected to be recognized over a weighted-average period of 2.91 years. The total fair market value of shares vested during 2008, 2007 and 2006 was $797,000, $1,380,000 and $1,031,000, respectively. Associate Stock Purchase Plan The Company established an Associate Stock Purchase Plan (ASPP) in 2001, which qualifies under Section 423 of the Internal Revenue Code. Each individual employed by the Company and associates of the Company's United States based subsidiaries, except as provided below, are eligible to participate in the Plan ("Participants"). The following individuals are excluded from participation: (a) persons who, as of the beginning of a purchase period under the Plan, have been continuously employed by the Company or its domestic subsidiaries for less than two weeks; (b) persons who, as of the beginning of a purchase period, 78
own directly or indirectly, or hold options or rights to acquire under any agreement or Company plan, an aggregate of 5% or more of the total combined voting power or value of all outstanding shares of all classes of Company Common Stock; and, (c) persons who are customarily employed by the Company for less than 20 hours per week or for less than five months in any calendar year. Participants may elect to make contributions from 1% to 20% of compensation to the ASPP, subject to annual limitations determined by the Internal Revenue Service. Participants may purchase Company Common Stock at a 15% discount on the last business day of the purchase period. The purchase of the Company’s Common Stock is made through the ASPP on the open market and subsequently reissued to the associates. Under FAS123R, the difference of the open market purchase and the participant’s purchase price is being recognized as compensation expense. Treasury Stock In March 2008, our Board of Directors authorized a stock repurchase program of up to $45 million of our Common Stock on the open market and/or in privately-negotiated purchase. The stock repurchase activity as of January 3, 2009 is as follows: These repurchased shares are recorded as treasury stock and are accounted for under the cost method. No repurchased shares have been retired. (10) Foundations Retirement Plan The Cerner Corporation Foundations Retirement Plan (the Plan) is established under Section 401(k) of the Internal Revenue Code. All associates over age 18 and not a member of an excluded class are eligible to participate. Participants may elect to make pretax contributions from 1% to 80% of eligible compensation to the Plan, subject to annual limitations determined by the Internal Revenue Service. Participants may direct contributions into mutual funds, a stable value fund, a Company stock fund, or a self-directed brokerage account. The Company makes matching contributions to the Plan, on behalf of participants, in an amount equal to 33% of the first 6% of the participant's salary contribution. The Company's expenses for the Plan amounted to $8,669,000, $8,280,000 and $7,791,000 for 2008, 2007 and 2006, respectively. The Company added a second tier discretionary match to the Plan in 2000. Contributions are based on attainment of established earnings per share goals for the year or the established financial metric for the Plan. Only participants who defer 2% of their base salary, are actively employed as of the last day of the Plan year and are employed before October 1 st of the Plan year are eligible to receive the discretionary match contribution. For the years ended 2008, 2007 and 2006 the Company expensed $2,228,000, $6,019,000 and $6,638,000 for discretionary distributions, respectively. 79
Page 1 and 2:
The ABCs of systemic healthcare ref
Page 3:
ANNUAL REPORT 2008 1
Page 6 and 7:
Board of Directors Neal L. Patterso
Page 8 and 9:
To Cerner’s Shareholders, Clients
Page 10 and 11:
As we have communicated, our long-t
Page 12 and 13:
Key provisions of the ARRA designat
Page 14 and 15:
most of our healthcare spending rel
Page 16 and 17:
Appendix: Cerner’s Business Model
Page 18 and 19:
that have allowed us to continue me
Page 20 and 21:
A key point regarding our margin ex
Page 23 and 24:
ANNUAL REPORT 2008 FORM 10-K 21
Page 25 and 26:
PART I Item 1. Business Overview Ce
Page 27 and 28:
total hours of effort needed to imp
Page 29 and 30: warranties concerning material erro
Page 31 and 32: known and unknown liabilities; 7) w
Page 33 and 34: Certain of our competitors have gre
Page 35 and 36: In July 2007, we entered into a lea
Page 37 and 38: Item 6. Selected Financial Data (1)
Page 39 and 40: Results Overview In a challenging e
Page 41 and 42: dispensing devices. Included in 200
Page 43 and 44: London which significantly enhances
Page 45 and 46: Net interest income was $1,269,000
Page 47 and 48: Liquidity and Capital Resources The
Page 49 and 50: The effects of inflation on the Com
Page 51 and 52: interest rates regularly reset ever
Page 53 and 54: PART III Item 10. Directors, Execut
Page 55 and 56: PART IV Item 15. Exhibits and Finan
Page 57 and 58: 10(r) 10(s) 10(t) 10(u) Cerner Corp
Page 59 and 60: Report of Independent Registered Pu
Page 65 and 66: (1) Summary of Significant Accounti
Page 67 and 68: Deferred revenue is comprised of de
Page 69 and 70: (n) Goodwill and Other Intangible A
Page 71 and 72: amounts that include the amounts at
Page 73 and 74: The Company performs ongoing credit
Page 75 and 76: The aggregate maturities for the Co
Page 77 and 78: Concurrently with the recognition o
Page 79: exercise and associate departure be
Page 83 and 84: The effective income tax rates for
Page 85 and 86: Accounting policies for each of the
Page 87 and 88: Stock Price Performance The followi
Page 92: World Headquarters Cerner Worldwide
show all

The ABCs of systemic healthcare reform - Cerner Corporation

Create successful ePaper yourself

Delete template?

Save as template?