SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2002.
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934.
Commission File Number 1-04721
A. Full title of the plan and the address of the plan, if different from that of
the issuer named below:
SPRINT RETIREMENT SAVINGS PLAN
FOR BARGAINING UNIT EMPLOYEES
B. Name of issuer of the securities held pursuant to the plan and the address of
its principal executive office:
SPRINT CORPORATION
6200 SPRINT PARKWAY
OVERLAND PARK, KS 66251
TOTAL NUMBER OF PAGES 26
EXHIBIT INDEX AT PAGE 24
1
REQUIRED INFORMATION
1. Opinion of Ernst & Young LLP.
2. Audited Statements of Net Assets Available for Benefits With Fund
Information as of December 31, 2002 and 2001.
3. Audited Statements of Changes in Net Assets Available for Benefits With
Fund Information For Each of the Years Ended December 31, 2002, 2001, and
2000.
4. Notes to Financial Statements.
5. Supplemental Schedules:
-Investments as of December 31, 2002.
-Reportable Transactions For the Year Ended December 31, 2002.
6. Exhibits:
-Consent of Ernst & Young LLP (Exhibit 23a).
-Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes - Oxley Act of 2002 (Exhibit 99).
2
SPRINT RETIREMENT SAVINGS PLAN
FOR BARGAINING UNIT EMPLOYEES
2002 ANNUAL REPORT
WITH
REPORT OF INDEPENDENT AUDITORS
3
SPRINT RETIREMENT SAVINGS PLAN
FOR BARGAINING UNIT EMPLOYEES
Index to Financial Statements
Report of Independent Auditors
Financial Statements
* Statements of Net Assets Available for Benefits as of December 31, 2002
and 2001
* Statements of Changes in Net Assets Available for Benefits for the Years
Ended December 31, 2002, 2001, and 2000
* Notes to Financial Statements
Supplemental Schedules
* Schedule I Investments as of December 31, 2002
* Schedule II Reportable Transactions for the Year Ended December 31, 2002
4
Report of Independent Auditors
The Employee Benefits Committee
Sprint Corporation
We have audited the accompanying statements of net assets available for benefits
of the Sprint Retirement Savings Plan for Bargaining Unit Employees (the Plan)
as of December 31, 2002 and 2001, and the related statements of changes in net
assets available for benefits for each of the three years in the period ended
December 31, 2002. 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 auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan at
December 31, 2002 and 2001, and the changes in its net assets available for
benefits for each of the three years in the period ended December 31, 2002, in
conformity with accounting principles generally accepted in the United States.
Our audits were performed for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules listed in
the index to the financial statements are presented for purposes of additional
analysis and are not a required part of the 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 supplemental schedules have been subjected to the
auditing procedures applied in our audits of the financial statements and,
in our opinion, are fairly stated in all material respects in relation to the
financial statements taken as a whole.
/s/ Ernst & Young LLP
Kansas City, Missouri
June 6, 2003
5
SPRINT RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
(Thousands of Dollars)
December 31,
2002 2001
---------------------- --------------------
PLAN ASSETS
Investments at fair value $ 196,091 $ 291,924
Receivables:
Receivables for unsettled security sales 13 608
Transfer receivable 33 302
Contributions receivable - 2
Other receivables - 12
Accrued interest and dividend income 2 7
---------------------- --------------------
Total assets 196,139 292,855
PLAN LIABILITIES
Benefit payment payable 7 146
Loan repayment payable 3 8
Accrued transfer payable 59 400
Forfeiture payable 1 -
Other payables 13 -
---------------------- --------------------
Total liabilities 83 554
---------------------- --------------------
Net assets available for benefits $ 196,056 $ 292,301
====================== ====================
See Notes to Financial Statements.
6
SPRINT RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
(Thousands of Dollars)
Years Ended December 31,
2002 2001 2000
------------------- ---------------- -----------------
Investment income:
Interest $ 869 $ 2,509 $ 2,723
Dividends 2,522 3,209 7,474
Net realized and unrealized appreciation (depreciation)
in the fair value of investments (102,045) 1,606 (249,729)
------------------- ---------------- -----------------
Net investment income (loss) (98,654) 7,324 (239,532)
Contributions - employer (net) 5,318 6,772 6,819
Contributions - employees 13,363 14,638 14,545
Administrative fees (3) (2) (17)
Withdrawals (15,853) (14,565) (33,307)
Inter-plan fund transfers (net) (416) (3,939) (6,347)
------------------- ---------------- -----------------
Net increase (decrease) (96,245) 10,228 (257,839)
Net assets available for benefits:
Beginning of year 292,301 282,073 539,912
------------------- ---------------- -----------------
End of year $ 196,056 $ 292,301 $ 282,073
=================== ================ =================
See Notes to Financial Statements.
7
SPRINT RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
1. DESCRIPTION OF THE PLAN
The following brief description of the Sprint Retirement Savings Plan for
Bargaining Unit Employees (the Plan) provides only general information.
Participants should refer to the Plan document and the summary plan description
for more complete information.
General
The Plan is a defined contribution plan established by Sprint Corporation
("Sprint" or the "Company") and adopted by a number of its subsidiaries that
provide local telecommunications services.
The Plan is subject to the provisions of the Employee Retirement Income Security
Act of 1974 (ERISA).
Eligibility
Participation in the Plan is voluntary. Individuals who are represented by a
collective bargaining unit that has negotiated for benefits under the Plan and
who are employed by the Company or one of its adopting subsidiaries are eligible
to participate upon date of hire. Employees of the Company or one of its
subsidiaries which are not eligible to participate in the Plan may be eligible
to participate in one of other similar plans established by the Company.
Contributions
Participants can contribute a portion of their salary or wages to a pre-tax
account up to the maximum amount designated in their collective bargaining
agreement under which they are covered. This amount is referred to as the basic
contribution. Federal income taxes are deferred on these amounts contributed to
the pre-tax accounts until the funds are withdrawn from the Plan.
Pre-tax participant contributions may not exceed annual limitations defined in
the Internal Revenue Code (Code) of $11,000 for the 2002 plan year and $10,500
for both the 2001 and the 2000 plan years. The percentage that can be
contributed by participants who meet the definition of a highly compensated
employee as defined in the Code is periodically recomputed in order to maintain
compliance with the nondiscrimination provisions of the Code. Previously,
certain participants were allowed to make after-tax contributions when so
provided. Currently contributions are allowed to only the pre-tax account.
Subject to certain limitations and restrictions, the Plan permits participants
to make rollover contributions from other plans qualified under Section 401 of
the Code.
The Company makes a matching contribution to the Plan in an amount which,
together with forfeitures of the Company contribution due to participants'
withdrawals, equals the total of the Company contribution as required under the
applicable collective bargaining agreements.
Contributions are made in Company common stocks with a market value equal to the
Company contribution requirement.
8
SPRINT RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
1. DESCRIPTION OF THE PLAN (Continued)
Contributions (Continued)
Effective the first quarter of the 2000 plan year, the allocation of the Company
matching contribution is subject to change based on the relative market
capitalization of FON and PCS stocks. During the 2001 plan year, the Company
contribution invested in FON stock ranged from 43% to 51% and the company
matching contribution invested in PCS stock ranged from 49% to 57%. During
the 2002 plan year, the company contribution invested in FON stock ranged from
43% to 68% and the company matching contribution invested in PCS stock ranged
from 32% to 57%. The allocation changes on a quarterly basis based on the
relative market capitalization.
If so provided in the applicable collective bargaining agreement, the Plan
provides that the Company may make an optional additional Company contribution.
The amount of this additional contribution, if any, will be based on a quarterly
comparison of the performance of the Company's common stocks with the
performance of common stocks of other telecommunications companies.
Effective March 2002, participants can choose to receive Sprint FON dividends as
taxable payments annually on vested FON company matching contributions and
pre-2002 employee FON contributions.
In 2002, catch-up contributions were made available to collective bargaining
units that negotiated for this benefit. Participants who were age 49 (or older)
on December 31, 2001 and who were making the maximum elective contribution for
the year were eligible to make an additional $1,000 in pre-tax contributions to
their Plan Account.
Investment Funds
Participants may direct their contributions into any of twenty-five funds among
the Growth Stock Funds, Dividend Growth Stock Fund, Balanced Stock Funds, Money
Market Fund, Bond Funds, International Equity Funds, Small Capitalization Growth
Stock Fund, Small Capitalization Value Stock Funds, Mid Capitalization Growth
Stock Fund, Mid Capitalization Value Stock Fund, Equity Index Fund and Emerging
Market Equity Fund, as well as the Sprint FON Stock Fund and the Sprint PCS
Stock Fund. The participants may also direct their contributions into five
pre-mixed portfolio investment options.
As of June 30, 2001, the Bond Fund, the Growth Stock Fund, Aggressive Growth
Stock Fund, Value Stock Fund and International Fund were invested in the PIMCO
Total Return Investment Fund, Inc., the Fidelity Magellan Fund, Inc., the
Fidelity Dividend Growth Fund, Inc., the Fidelity Equity Income Fund, Inc. and
the Fidelity Overseas Fund, Inc., respectively. The Mid Capitalization Growth
Stock Fund invested in the Fidelity OTC Portfolio Fund, Inc. The Interest Income
Fund was managed by Fidelity Management Trust Company and was invested in a
number of investment contracts issued by various insurance companies and banks
and the PIMCO Low Duration Fund, Inc. as well as the PIMCO Low Duration II Fund,
Inc. The U.S. Stock Index Fund invested in the Fidelity U.S. Equity Index Fund,
Inc. and was also managed by Fidelity Management Trust Company.
On July 1, 2001, three existing investment vehicles in the Plan were replaced.
The Interest Income Fund managed by Fidelity Management Trust Company was
replaced by a PIMCO Bond Fund, i.e., PIMCO Separately Managed Portfolio, Inc. (1
Account).
9
SPRINT RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
1. DESCRIPTION OF THE PLAN (Continued)
Investment Funds (Continued)
The PIMCO Total Return Investment Fund, Inc. was replaced by another PIMCO
Bond Fund, i.e., PIMCO Separately Managed Portfolio, Inc. (B Account). A new
U.S. Stock Index Fund, i.e., Barclays' Equity Index Fund, Inc., replaced the
Fidelity U.S. Equity Index Fund.
The five pre-mixed portfolio investment options that the Plan offers are
Conservative Growth Portfolio, Moderate Growth Portfolio, Balanced
Growth Portfolio, High Growth Portfolio and Aggressive Growth Portfolio.
The Growth Stock Funds were invested in Harbor Capital Appreciation Fund,
Inc. and the White Oak Growth Stock Fund, Inc. from July 2001 through
December 2002. Effective December 31, 2002, Harbor Capital Appreciation
Fund, Inc. and White Oak Growth Stock Fund were replaced by Jennison
Associates LLC Separately Managed Account and Oak Associates, Ltd.
Separately Managed Account, respectively. The Growth Stock Funds is also
invested in the Fidelity Magellan Fund, Inc. The Large Blend Stock Fund is
invested in the Fidelity Dividend Growth Fund, Inc. The International Equity
Funds are invested in the Janus Aspen Worldwide Growth Fund, Inc., the
Capital Guardian International Equity Fund, Inc. and the Barclays'
EAFE Equity Index Fund, Inc. in addition to the Fidelity Overseas Fund, Inc.
The Bond Funds are invested in the PIMCO High Yield Fund, Inc., the PIMCO
Foreign Bond Fund, Inc. and the GMO Emerging Country Debt Share Fund,
Inc. in addition to the PIMCO Separately Managed Portfolio, Inc. The
Balanced Stock Fund was invested in the Barclays' Russell 1000 Value Index
Fund from July 2001 through December 2002. Effective December 31,
2002, the balances and future contributions of Barclays' Russell 1000 Value
Index Fund were re-directed to Harris Associates, L.P. Separately Managed
Account. The Balanced Stock Fund is also invested in the Fidelity Equity
Income Fund, Inc. The Money Market Fund is invested in Barclays' Money Market
Fund, Inc. The Small Capitalization Value Stock Fund was invested in the
Barclays' Russell 2000 Growth Index Fund, Inc. from July 2001 through
December 2002. Effective December 31, 2002, the balances and future
contributions of Barclays' Russell 2000 Growth Index Fund were re-directed
to Wall Street Associates Separately Managed Account. The Small
Capitalization Value Stock Fund is also invested in the U.S. Small
Capitalization Value Portfolio of DFA, Inc. The Mid-Capitalization Growth
Stock Fund is invested in the Fidelity OTC Portfolio, Inc. The
Mid-Capitalization Value Stock Fund is invested in the American Century
Equity Income Fund, Inc. And finally, the Emerging Market Equity Fund is
invested in the Capital Guardian Emerging Markets Equity Fund, Inc.
Participants are able to invest their own contributions in the Sprint FON Stock
Fund and/or the Sprint PCS Stock Fund. For amounts attributable to participants'
own contributions, participants are also permitted to transfer their existing
balances into and out of those funds.
Participants may redirect the fund in which their current contributions are
invested each pay period. Participants may also transfer existing balances on
any weekday except holidays or when the New York Stock Exchange is closed. Other
limitations on transfers between funds apply in certain circumstances.
10
SPRINT RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
1. DESCRIPTION OF THE PLAN (Continued)
Investment Funds (Continued)
The following represents the number of participants in each investment fund as
of December 31, 2002, 2001, and 2000:
Number of Participants
At December 31
2002 2001 2000
Magellan Growth Stock Fund 3,460 3,713 3,967
Fidelity Equity Income Fund 1,671 1,788 1,870
Interest Income Fund 3,237 3,479 3,746
PIMCO Bond Fund 475 457 445
Fidelity Overseas Fund 379 409 453
Sprint FON Stock Fund 5,715 5,962 6,100
Sprint PCS Stock Fund 5,708 5,970 6,100
Fidelity OTC Portfolio 471 510 527
Fidelity Dividend Growth Fund 411 406 320
U.S. Stock Index Fund 223 229 210
Conservative Growth Portfolio 24 11 --
Moderate Growth Portfolio 34 16 --
Balanced Growth Portfolio 47 29 --
High Growth Portfolio 39 22 --
Aggressive Growth Portfolio 52 37 --
Barclay's Money Market Fund 117 37 --
Barclays' Russell 2000 Index Fund 47 16 --
Barclays' EAFE Equity Index Fund 20 10 --
PIMCO High Yield Fund 38 13 --
Value Stock Fund I 24 8 --
Growth Stock Fund I 38 26 --
American Century Equity Income Fund 89 41 --
11
SPRINT RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
1. DESCRIPTION OF THE PLAN (Continued)
Investment Funds (Continued)
Number of Participants
At December 31
2002 2001 2000
Aggressive Growth Stock Fund 55 31 --
DFA U.S. Small Capitalization Value Fund 109 34 --
Small-Cap Growth Stock Fund 24 8 --
PIMCO Foreign Bond Fund 34 10 --
Janus Aspen Worldwide Growth Fund 73 36 --
Capital Guardian International Equity Fund 17 5 --
GMO Emerging Market Country Debt Share 49 7 --
Fund
Capital Guardian Emerging Markets Equity 23 7 --
Fund
Vesting
Participants are 100% vested in their participant contribution account balances
at all times.
Effective December 1, 2001, participants have a right to their Company
contributions based on a graded vesting schedule, which is: 20% vested after two
years of service, 40% vested after three years of service, 60% vested after four
years of service and 100% vested after five or more years of continuous service
with the Company. Earlier vesting may occur, if while an employee of the
Company, a participant (1) attains age 65, (2) incurs a permanent and total
disability, or (3) dies.
Withdrawing participants who do not meet these vesting guidelines forfeit the
non-vested portion of the Company contribution. Such amounts are used to offset
future Company contribution requirements.
12
SPRINT RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
1. DESCRIPTION OF THE PLAN (Continued)
Withdrawals
Participants may withdraw the vested value of their account when they retire,
terminate employment with the Company, reach age 59 1/2, meet "hardship"
requirements defined in the Code, or become permanently and totally disabled.
Withdrawals may also be made from the after-tax portion of their account and
the vested portion of their Company contribution account that has been held by
the Plan for two full calendar years following the year of contribution. These
withdrawals may not be made more often than twice per year. The minimum
withdrawal is the lesser of $1,000 or 50% of the amount that may be withdrawn.
Participant Loans
Participants may borrow the lesser of (1) one-half of the total value of their
vested account balance, (2) $50,000 reduced by the highest outstanding balance
of the participant's loan from the Plan during the one year period ending on the
date the loan is made, or (3) the total value of their pre-tax account. The
minimum loan is $1,000.
Participants may have no more than two loans outstanding from the Plan at a
time. Amounts borrowed by participants must be repaid within 5 years and no
sooner than 6 months. In the event that the proceeds of the loan are used to
acquire a participant's principal residence, the maximum repayment period may be
as much as 25 years. The interest rate charged on loans is set by the Employee
Benefits Committee.
Participant Accounts
A separate account is maintained for each participant in the Plan. Each
participant's account is adjusted for (a) Company contributions on behalf of the
participant, (b) the participant's contributions to the Plan, including rollover
contributions, (c) the participant's share of any investment income, (d)
withdrawals, (e) loans, and (f) forfeitures of Company contributions due to the
participant's withdrawal.
Administration and Plan Expenses
The Plan is administered by the Employee Benefits Committee of Sprint.
Administrative and investment expenses are expenses of the Plan and, except to
the extent paid by the Company, are paid out of the trust. Certain
administrative charges for employee loans are borne by the participants with
outstanding loans.
Termination
Although the Company has not expressed an intention to terminate the Plan, it
reserves the right to amend or terminate the Plan at any time. Should the Plan
terminate, the accounts of all participants will become non-forfeitable as of
the date of termination.
13
SPRINT RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
December 31, 2002
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies of the Plan:
Valuation of Investments
Investments of the Plan are generally valued at fair value. The fair value of
the common stock is based on the value of the last reported sale in the active
market they are traded in on the last business day of the year. The fair value
of equity mutual funds and bond mutual funds are valued at the redemption price.
The fair value of the short term investments is estimated at cost plus accrued
interest. Notes receivable from participants are valued at their principal
balance.
Interest and Dividend Income
Dividend income is recorded on the ex-dividend date. Income from the investments
is recorded as earned on an accrual basis.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts in the financial statements.
Actual results could differ from these estimates.
Income Tax Status
The Plan has received a determination letter from the Internal Revenue Service
dated March 26, 1996, stating that the Plan is qualified under Section 401(a) of
the Code and, therefore, the related trust is exempt from taxation. Subsequent
to this issuance of the determination letter, the Plan was amended. Once
qualified, the Plan is required to operate in conformity with the Code to
maintain its qualification. The plan administrator believes the Plan is being
operated in compliance with the applicable requirements of the Code and,
therefore, believes that the Plan, as amended, is qualified and the related
trust is tax exempt.
Withdrawals
Withdrawals, other than cash, are recorded at the fair market value of the
assets on the date of distribution.
14
SPRINT RETIREMENT SAVINGS PLAN
FOR BARGAINING UNIT EMPLOYEES
Notes to Financial Statements
December 31, 2002
3. INVESTMENTS
The Plan's investments are held by the Fidelity Management Trust Company
of Boston, Massachusetts, as trustee. The following table presents the
Plan investments that represent 5% or more of net assets available for
benefits of the Plan.
(Thousands of Dollars)
December 31,
2002 2001
----------------- -------------------
Investments at Fair Value as
Determined by Quoted Market Price:
Sprint FON Common Stock $ 53,148 $ 69,515
Sprint PCS Common Stock 19,960 76,875
Fidelity Magellan Fund, Inc. 47,768 63,789
Fidelity Equity Income Fund, Inc. 13,137 16,200
PIMCO Separately Managed 1 Account 35,999 36,122
15
SPRINT RETIREMENT SAVINGS PLAN
FOR BARGAINING UNIT EMPLOYEES
Notes to Financial Statements
December 31, 2002
3. INVESTMENTS (Continued)
During 2002, 2001 and 2000, the Plan's investments (including
investments purchased, sold and held during the year) appreciated
(depreciated) in value as follows:
Net Realized and Unrealized Appreciation (Thousands of Dollars)
(Depreciation) in Value Years Ended December 31,
2002 2001 2000
------------------ ----------------- ------------------
Investments at Fair Value as Determined
by Quoted Market Price:
Common stock:
Sprint FON $ (18,011) $ (582) $ (158,499)
Sprint PCS (65,996) 12,984 (77,370)
Equity mutual funds (20,163) (12,422) (13,967)
Bond mutual funds 2,396 1,682 212
Equity index fund (229) (59) (105)
Other (42) 3 -
------------------ ----------------- ------------------
$(102,045) $ 1,606 $ (249,729)
================== ================= ==================
16
SPRINT RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
Notes to Financial Statements
December 31, 2002
4 NON-PARTICIPANT DIRECTED INVESTMENTS
The funds comprised of company stock (FON Stock Fund and PCS Stock
Fund) include both participant-directed and nonparticipant-directed
amounts. Information regarding the changes in net assets relating to
these funds in total is as follows:
(Thousands of Dollars)
Year Ended December 31
2002 2001 2000
----------------- ----------------- ----------------
Investment income:
Interest $ 285 $ 369 $ 351
Dividends 1,735 1,686 1,673
Net realized and unrealized appreciation (depreciation)
in the fair value of investments (84,007) 12,414 (235,869)
----------------- ----------------- ----------------
Net investment income (loss) (81,987) 14,469 (233,845)
Contributions - employer (net) 5,300 6,772 6,856
Contributions - employee 4,150 4,956 5,003
Administrative fees (1) (1) (3)
Withdrawals (4,790) (6,169) (20,945)
Inter-plan fund transfers (net) 1,060 (2,223) (4,399)
Intra-plan fund transfers (net) (42) (440) 13,682
----------------- ----------------- ----------------
Net increase (decrease) (76,310) 17,364 (233,651)
Net assets available for benefits:
Beginning of year 153,275 135,911 369,562
----------------- ----------------- ----------------
End of year $ 76,965 $ 153,275 $ 135,911
================= ================= ================
Of the above net assets, information about the net assets of the nonparticipant-directed investments is as follows:
(Thousands of Dollars)
December 31,
2002 2001
----------------- -----------------
Net Assets:
FON Stock Fund $ 42,606 $ 16,845
PCS Stock Fund 8,124 32,743
17
SPRINT RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
Notes to Financial Statements
December 31, 2002
5. RELATED PARTY TRANSACTIONS
Non-participant directed contributions are made directly to the FON and PCS
stock funds. In addition, participants can elect to contribute a percentage
of their contribution to these funds. In 2002, approximately $4 million and
$5 million were contributed to the FON and PCS stock funds, respectively.
In 2001, approximately $5 million and $7 million were contributed to the
FON and PCS stock funds, respectively. In 2000, approximately $5 million
and $6 million were contributed to the FON and PCS stock funds,
respectively.
18
SUPPLEMENTAL SCHEDULES
19
Schedule I
Page 1 of 2
SPRINT RETIREMENT SAVINGS PLAN
FOR BARGAINING UNIT EMPLOYEES
Investments
December 31, 2002
(Thousands of Dollars)
Fair
Identity of Issue Cost Value
------------------------------------------------------- -------------------- --------------------
Common stock:
Sprint Corporation - FON** $ 73,091 $ 53,148
Sprint Corporation - PCS** 65,335 19,960
-------------------- --------------------
Total common stock 138,426 73,108
Equity mutual funds:
Fidelity Magellan Fund, Inc. ** 57,788 47,768
Fidelity Dividend Growth Fund, Inc. ** 2,818 2,278
Fidelity Equity Income Fund, Inc. ** 14,819 13,137
Fidelity OTC Portfolio Fund, Inc. ** 4,503 2,515
Fidelity Overseas Fund, Inc. ** 1,547 996
Capital Gardian International Equity Fund 42 40
Capital Gardian Emerging Market Equity Fund 24 21
Jennison Associates LLC Separately Managed Account 92 92
Janus Aspen Worldwide Growth Fund 104 85
Oak Associates, Ltd. Separately Managed Account 96 96
American Century Equity Income Fund 454 435
DFA U.S. Small-Cap Value Portfolio 488 389
Barclays' Russell 2000 Index Fund 100 85
Barclays' EAFE Equity Index Fund 18 16
Harris Associates, L.P. Separately Managed Account 44 44
Wall Street Associates Separately Managed Account 34 34
-------------------- --------------------
Total equity mutual funds 82,971 68,031
Bond mutual funds:
PIMCO High Yield Fund 67 65
PIMCO Foreign Bond Fund 78 79
GMO Emerging Country Debt Share Fund 162 160
PIMCO Separately Managed 1 Account 32,784 35,999
PIMCO Separately Managed B Account 2,493 2,787
-------------------- --------------------
Total bond mutual funds 35,584 39,090
U.S. Stock index fund:
Barclays' Equity Index Fund 1,144 878
Short-term investments:
Barclays' Money Market Fund 1,177 1,177
Fidelity Investment Cash Portfolio ** 1,786 1,786
Fidelity Retirement Market Account** 4 4
-------------------- --------------------
Total short-term investments 2,967 2,967
20
Schedule I
Page 2 of 2
SPRINT RETIREMENT SAVINGS PLAN
FOR BARGAINING UNIT EMPLOYEES
Investments
December 31, 2001
(Thousands of Dollars)
Fair
Identity of Issue Cost Value
------------------------------------------------------- -------------------- --------------------
Other:
Conservative Growth Portfolio $ 189 $ 192
Moderate Growth Portfolio 59 58
Balanced Growth Portfolio 138 130
High Growth Portfolio 183 167
Aggressive Growth Portfolio 80 72
-------------------- --------------------
Total other investments 649 619
Notes receivable from participants 11,398 11,398
-------------------- --------------------
Total Investments $ 273,139 $ 196,091
==================== ====================
** Indicates party-in-interest to the Plan.
21
Schedule II
SPRINT RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
REPORTABLE TRANSACTIONS
For the Year Ended December 31, 2002
(Thousands of Dollars)
NO REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 2002.
22
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934,
the Pension & Savings Trusts Committee, which administers the Plan, has duly
caused this annual report to be signed on its behalf by the undersigned,
hereunto duly authorized.
Sprint Retirement Savings Plan
for Bargaining Unit Employees
Date: June 24, 2003 By: /s/ Gene M. Betts
----------------------------
Gene Betts
Pension & Savings Trusts Committee Member
23
EXHIBIT INDEX
Exhibit Number Page
23a Consent of Ernst & Young LLP 25
99 Certification in Compliance with 18 26
U.S.C. Section 1350 as Adopted
Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
24