The ABCs of systemic healthcare reform - Cerner Corporation

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.
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