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, 2003.
[ ] 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:
CENTEL 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
CENTEL RETIREMENT SAVINGS PLAN
FOR BARGAINING UNIT EMPLOYEES
2003 ANNUAL REPORT
WITH
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
CENTEL RETIREMENT SAVINGS PLAN
FOR BARGAINING UNIT EMPLOYEES
Index to Financial Statements
Report of Independent Registered Public Accounting Firm
Financial Statements
o Statements of Net Assets Available for Benefits as of December
31, 2003 and 2002 1
o Statements of Changes in Net Assets Available for Benefits for
the Years Ended December 31, 2003, 2002, and 2001 2
o Notes to Financial Statements 3
Supplemental Schedule
o Schedule I Schedule H, Line 4(i) - Schedule of Assets
(Held at End of Year) 11
Report of Independent Registered Public Accounting Firm
The Employee Benefits Committee
Sprint Corporation
We have audited the accompanying statements of net assets available for benefits
of the Centel Retirement Savings Plan for Bargaining Unit Employees (the Plan)
as of December 31, 2003 and 2002, and the related statements of changes in net
assets available for benefits for each of the three years in the period ended
December 31, 2003. 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 the standards of the Public Company
Accounting Oversight Board (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, 2003 and 2002, and the changes in its net assets available for
benefits for each of the three years in the period ended December 31, 2003, in
conformity with U.S. generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedule of assets
(held at end of year) as of December 31, 2003 is presented for purposes of
additional analysis and is not a required part of the financial statements but
is 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. This supplemental schedule is the responsibility of the
Plan's management. The supplemental schedule has been subjected to the auditing
procedures applied in our audits of the financial statements and, in our
opinion, is fairly stated in all material respects in relation to the financial
statements taken as a whole.
/s/ Ernst & Young LLP
Kansas City, Missouri
June 11, 2004
CENTEL RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
(Thousands of Dollars)
As of December 31:
2003 2002
----------- ------------
PLAN ASSETS
Investments at Current Value $ 126,530 $ 106,808
Receivables:
Receivables for unsettled security sales 119 8
Transfers receivable 41 31
Contributions receivable 1 -
Other receivables 0 4
Accrued interest and dividend income 1 1
----------- ------------
Total assets 126,692 106,852
----------- ------------
PLAN LIABILITIES
Forfeitures payable 0 1
Accrued investment expenses 0 -
Payable for unsettled security purchases 66 -
Other payables 65 64
----------- ------------
Total liabilities 131 65
----------- ------------
Net assets available for benefits $ 126,561 $ 106,787
----------- ------------
----------- ------------
See Notes to Financial Statements
1
CENTEL RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
(Thousands of Dollars)
For the Year Ended December 31:
2003 2002 2001
----------- ----------- -----------
Investment Income (Loss):
Interest $ 257 $ 511 $ 1,886
Dividends 1,580 1,280 1,429
Net realized and unrealized appreciation (depreciation)
in the current value of investments 16,620 (83,800) 14,162
----------- ----------- -----------
Net investment income (loss) 18,457 (82,009) 17,477
Contributions - employer (net) 4,039 4,517 4,772
Contributions - employee 6,312 7,007 7,522
Administrative fees (6) (3) (3)
Withdrawals (8,720) (11,184) (15,016)
Inter-plan fund transfers (net) (308) (716) (1,978)
----------- ----------- -----------
Net increase (decrease) 19,774 (82,388) 12,774
Net Assets Available for Benefits:
Beginning of year 106,787 189,175 176,401
----------- ----------- -----------
End of year $ 126,561 $ 106,787 $ 189,175
----------- ----------- -----------
----------- ----------- -----------
See Notes to Financial Statements
2
CENTEL RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
1. DESCRIPTION OF THE PLAN
The following brief description of the Centel Retirement Savings Plan for
Bargaining Unit Employees (the Plan) provides only general information. For more
complete information participants may refer to the Plan document and the Summary
Plan Description, which can be obtained by calling the Employee Solutions
Network at 800-697-6000.
General
-------
The Plan is a defined contribution plan established by Centel Corporation
("Centel" or the "Company") and adopted by substantially all of its
subsidiaries. The Plan is subject to the provisions of the Employee Retirement
Income Security Act of 1974 (ERISA) and is a qualified cash or deferred
arrangement as defined in Section 401(k) of the Internal Revenue Code.
On March 9, 1993, Centel merged with Sprint Corporation (Sprint) and the Company
became a wholly owned subsidiary of Sprint. Since the merger of Centel and
Sprint, the Plan continues to provide benefits to eligible employees of the
Company and its subsidiaries which have adopted the Plan. Effective November 1,
2000, the Centel Employees' Stock Ownership Plan (CESOP) was merged into the
Plan and the Sprint Retirement Savings Plan as appropriate.
Eligibility
-----------
Participation in the Plan is voluntary. Individuals who are employed by the
Company or one of its adopting subsidiaries and who are represented by a
collective bargaining unit that has negotiated for benefits under the Plan are
eligible to participate upon date of hire. If an individual is not a permanent
full-time employee, the employee is eligible to participate after completing six
months of service.
Contributions
-------------
Participants may contribute up to 10% of their salary or wages to a pre-tax
account. Participants may make after-tax contributions to the Plan, provided the
sum of pre-tax and after-tax contributions does not exceed 16% of the
participant's pay. The first 6% is referred to as the basic contribution.
Federal income taxes are deferred on the pre-tax amounts contributed 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 $12,000 for the 2003 plan year, $11,000 for
the 2002 plan year and $10,500 for the 2001 plan year. The percentage that may
be contributed by participants who meet the definition of a highly compensated
employee as defined in the Code is periodically recalculated in order to
maintain compliance with the nondiscrimination provisions of the Code.
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 70% (or other percentage as established in the participant's
collective bargaining agreement as noted in Schedule B of the Plan) of the first
6% contributed by participants. Participant contributions in excess of 6% of
each participant's pay are not included in this calculation of the Company
matching contribution. Upon completion of an enrollment form by the participant,
the Company also makes a profit-sharing contribution of 1% (or other percentage
as established in the participant's collective bargaining agreement as noted in
Schedule C of the Plan) of eligible pay to all participants, regardless of
whether or not they elect to contribute to the Plan. Company and employee
contributions are made in cash.
3
CENTEL RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
Contributions (cont'd)
----------------------
Effective March 2002, participants may choose to receive annual taxable dividend
payments on vested Sprint 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. To be eligible to make catch-up
contributions, a participant must be age 50 by the end of the respective plan
year and must contribute the maximum elective contribution for that plan year.
For plan year 2003, the pre-tax catch-up contribution limit was $2,000. In plan
year 2002, the pre-tax catch-up contribution limit was $1,000.
Investment Funds
----------------
Participants may direct their contributions into any of thirty funds among which
are three large capitalization Growth Stock funds, a Large Blend Stock Fund, two
Large Capitalization Value Stock funds, a Money Market Fund, four Bond funds,
five International and Emerging Market Equity funds, three Small Capitalization
Stock funds, two Mid-Capitalization Stock funds, a U. S. Equity Index Fund, an
Emerging Market Debt 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: Conservative Growth Portfolio, Moderate
Growth Portfolio, Balanced Growth Portfolio, High Growth Portfolio and
Aggressive Growth Portfolio.
As of June 30, 2001, the Bond Fund, the Growth Stock Fund, Aggressive Growth
Stock Fund, Value Stock Fund and International Stock Fund were invested in the
PIMCO Total Return Investment Fund, the Fidelity Magellan Fund, the Fidelity
Dividend Growth Fund, the Fidelity Equity Income Fund, and the Fidelity Overseas
Fund, respectively. 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, investment offerings in the Plan expanded to thirty and three
existing investment vehicles in the Plan were replaced as follows:
Investment Option Vehicle Name Service Replacement Vehicle Effective
Name Dates Date
Bond Fund PIMCO Total Return Fund 10/1/95 - 7/1/01 PIMCO Separately Managed 7/1/01
(B acct.)
Interest Income Fund Fidelity Separately Managed 4/1/92 - 7/1/01 PIMCO Separately Managed 7/1/01
(I acct.)
U.S. Stock Fund Fidelity U.S. Equity Index Fund 10/1/96 - 7/1/01 Barclay's Equity Index Fund 7/1/01
The following changes were implemented during Plan Year 2002:
Investment Option Vehicle Name Service Dates Replacement Vehicle Effective
Name Date
Growth Stock Fund Harbor Capital Appreciation Fund 7/1/01 - 12/31/02 Jennison Associates, LLC 12/31/02
(separately managed account)
Aggressive Growth Stock White Oak Growth Stock Fund 7/1/01 - 12/31/02 Oak Associates, Ltd. 12/31/02
Fund (separately managed account)
Value Stock Fund I Barclay's Russell 1000 Value 7/1/01 - 12/31/02 Harris Associates, L.P. 12/31/02
Index Fund (separately managed account)
4
CENTEL RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
Investment Funds (Continued)
----------------------------
The following changes were implemented during Plan Year 2003:
Investment Option Vehicle Name Service Dates Replacement Vehicle Effective
Name Date
Mid-Cap Growth Stock Fidelity OTC Portfolio 7/1/01 - 7/1/03 Harbor Mid-Cap Growth Stock 7/1/03
Fund Fund
Aggressive Growth Oak Associates (separately 12/31/02 - 7/1/03 Fidelity OTC Fund 7/1/03
Stock Fund managed acct.)
Global Equity Fund Janus Aspen Worldwide Growth 7/1/01 - 7/1/03 GMO Global Equity Allocation 7/1/03
Strategy
International Stock Barclay's EAFE Equity Index Fund 7/1/01 - 7/1/03 NTGI EAFE Equity Index 7/1/03
Fund Fund "F"
Money Market Fund Barclay's Money Market Fund 7/1/01 - 7/1/03 NTGI Short Term Investment 7/1/03
Fund Fund
U.S. Stock Index Fund Barclay's Equity Index Fund "F" 7/1/01 - 7/1/03 NTGI S&P 500 Equity Index 7/1/03
Fund
Small Cap Stock Fund Barclay's Russell 2000 Index Fund 7/1/01 - 7/1/03 NTGI Russell 2000 Index Fund 7/1/03
Participants may, at their discretion, alter the array of funds in which their
payroll contributions are invested. Participants may also execute a transfer of
funds on any day the New York Stock Exchange is open.
Other limitations on transfers between funds apply in certain circumstances.
Concentration of Risk
---------------------
At December 31, 2003, 2002 and 2001, a portion of the Plan's assets were in
shares of Sprint FON and PCS common stock, the value of which is subject to
fluctuations related to corporate, industry and economic factors.
The Plan's other investment options include a variety of stocks, bonds, mutual
funds, and other securities. Investment securities subject participants to
various risks, such as interest rate, market and credit risks. Due to the level
of risk associated with certain investment securities, it is likely that changes
in the values of investment securities will occur in the near term and that such
changes could affect participants' account balances and the amounts reported in
the Statements of Net Assets Available for Benefits.
Vesting
-------
Participants are 100% vested in their employee contribution and Company profit
sharing contribution account balances at all times.
Effective December 1, 2001, the vesting of Company matching contributions is
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
5
CENTEL RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
Vesting (cont'd)
----------------
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.
Withdrawals
-----------
Participants may withdraw the vested value of their account when they retire,
terminate employment with the Company, reach age 59 1/2, or meet "hardship"
requirements defined in the Code. In-service withdrawals may be made by
participants up to twice per year. The maximum amount of an in-service
withdrawal is the sum of the after- tax account, rollover account, and the
vested portion of the Company match account. The minimum in-service withdrawal
is the lesser of $200 or 100% of the vested account balance.
Participant Loans
-----------------
Participants may borrow up to the lesser of (1) one-half of the total value of
their vested account balance or (2) $50,000. The minimum loan is $1,000. Amounts
borrowed by participants must be repaid within 5 years. 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 10 years and the minimum loan is
$5,000. The interest rate charged on loans is set by Sprint's 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 Sprint's Employee Benefits Committee. Administrative
and investment expenses are expenses of the Plan and, except to the extent paid
by the Company, are paid out of the trust.
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.
The following information pertains to the Centel Employees' Stock Ownership Plan
(CESOP) account:
Eligibility/Contributions - CESOP
---------------------------------
Employees of Centel, during the period of January 1, 1975, through December 31,
1986, were eligible to participate in the CESOP. The Company made all
contributions to the CESOP through December 31, 1986. Effective January 1, 1987,
concurrent with the effective date of the Tax Reform Act of 1986, contributions
to the CESOP ceased.
6
CENTEL RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
Investment Fund - CESOP
-----------------------
Plan assets are invested solely in Sprint FON common stock and Sprint PCS common
stock except for amounts necessary to meet anticipated administrative expenses
and distributions.
Vesting - CESOP
---------------
Participants are 100% vested in their account balances at all times.
Withdrawals - CESOP
-------------------
Participants may elect to withdraw all of their CESOP account balance while an
active employee of the Company. Upon termination of employment, retirement,
death, total and permanent disability, or upon termination of the Plan,
participants may elect to withdraw their entire account balance.
Dividends - CESOP
-----------------
Dividends earned on shares held in the CESOP account are distributed annually to
participants unless otherwise elected by a participant, or are reinvested if the
amount of the dividend payment is less than $10.
Participant Accounts - CESOP
----------------------------
A separate CESOP account is maintained in each participant's 401(k) account.
Each participant's account is adjusted for (a) the participant's share of any
investment income or loss, and (b) withdrawals.
7
CENTEL RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
NOTES TO FINANCIAL STATEMENS
DECEMBER 31, 2003
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 valued at current value. The current value of the
common stock is based on the value of the last reported sale in the active
market in which they are traded on the last business day of the year. The
current value of equity mutual funds and bond mutual funds are valued at the
redemption price on the last business day of the year. The current 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 U. S. generally
accepted accounting principles 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 June 12, 2003, 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 current market value of the
assets on the date of distribution.
Reclassifications
-----------------
Certain prior-year amounts have been reclassified to conform to the current-year
presentation. These reclassifications had no effect on net assets available for
benefits.
8
CENTEL RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
(Thousands of Dollars)
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 the Plan's net assets available
for benefits.
As of December 31:
2003 2002
Investments at Current Value as Determined by ------------ ------------
Quoted Market Price:
Sprint FON Common Stock $ 29,651 $ 29,566
Sprint PCS Common Stock 28,835 20,259
Fidelity Magellan Fund 8,008 6,152
Fidelity Equity Income Fund 7,764 6,022
PIMCO Separately Managed I Account 26,502 27,381
During 2003, 2002 and 2001, the Plan's investments (including investments
purchased, sold and held during the year) appreciated (depreciated) in
value as follows:
(Thousands of Dollars)
Net Realized and Unrealized Appreciation For the Year Ended December 31:
(Depreciation) in Value
2003 2002 2001
------------ -------------- -------------
Investments at Current Value as Determined by
Quoted Market Price:
Common stock:
Sprint Corporation:
FON $ 3,777 $ (8,766) $ (16)
PCS 6,542 (67,358) 15,365
Sprint Corporation - CESOP:
FON 612 (1,825) (28)
PCS 191 (3,269) 729
Equity mutual funds 4,308 (4,364) (3,283)
Bond mutual funds 932 1,888 1,430
Equity index fund 193 (81) (17)
Other 65 (25) (18)
------------ -------------- -------------
Total Appreciation (Depreciation) $ 16,620 $(83,800) $ 14,162
------------ -------------- -------------
------------ -------------- -------------
9
CENTEL RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
4. RELATED PARTY TRANSACTIONS
Participants may elect to contribute a percentage of their contribution and
Company contributions to the FON and PCS stock funds. In 2003, these combined
contributions approximated $2 million for the FON stock fund and $3 million for
the PCS stock fund. In 2002 and 2001, approximately $3 million and $4 million
were contributed to the FON and PCS stock funds, respectively.
5. LEGAL PROCEEDINGS
In 2003, several putative class action lawsuits were filed in the U. S. District
Court for the District of Kansas by individual participants in the Plan, the
Sprint Retirement Savings Plan, and the Sprint Retirement Savings Plan for
Bargaining Unit Employees against Sprint, the committee that administers the
plans, the trustee for the plans, and various current and former officers and
directors of Sprint. These lawsuits have been consolidated before a single
judge. The lawsuit alleges that defendants breached their fiduciary duties to
the plans and violated the ERISA statutes by including FON stock and PCS stock
among the investment options offered to plan participants. The lawsuit seeks to
recover any decline in the value of FON stock and PCS stock during the class
period.
6. SUBSEQUENT EVENTS (unaudited)
Common Stock Recombination
--------------------------
In February 2004, Sprint's board of directors decided to recombine the tracking
stocks and return to a single common stock. As a result, on April 23, 2004, each
share of PCS stock automatically converted to 0.50 shares of FON stock.
Concurrently, the Sprint FON Stock Fund and the Sprint PCS Stock Fund were
combined. Since that date, contributions allocated to purchase Sprint stock may
be directed only to the Company Stock Fund. The FON stock now represents the
only outstanding common stock of Sprint.
Oversight Committee Reconstitution
----------------------------------
On April 1, 2004, the duties of the Pension and Savings Trusts Committee were
assumed by the Employee Benefits Committee and the Pension and Savings Trusts
Committee ceased to exist. The Employee Benefits Committee is the named
fiduciary of the Plan and has responsibility for the administrative and
financial activities of the Plan.
10
SUPPLEMENTAL SCHEDULE
Schedule I
Page 1 of 2
CENTEL RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
EIN: 48-0498479
Plan #017
Schedule H, Line 4(i) - Schedule of Assets (Held at End of Year)
December 31, 2003
(Thousands of Dollars)
Identity of Issue Cost Current Value
------------------------------------------ ------------ ---------------
Common stock:
Sprint Corporation:
FON** $ 35,343 $ 29,651
PCS** 68,848 28,835
Sprint Corporation - CESOP:
FON** 2,865 5,279
PCS** 346 855
------------ ---------------
Total common stocks 107,402 64,620
Equity Funds:
Fidelity Magellan Fund** 8,328 8,008
Fidelity Equity Income Fund** 7,241 7,764
Fidelity OTC Portfolio Fund** 2,599 1,978
Fidelity Overseas Fund** 1,188 1,171
Fidelity Dividend Growth Fund** 767 800
Capital Guardian International Equity Fund 49 57
Capital Guardian Emerging Market Equity Fund 11 14
Jennison Associates LLC Separately Managed Acct. 74 93
Harris Associates, L.P. Separately Managed Acct. 149 179
Wall Street Associates Separately Managed Acct. 89 105
American Century Equity Income Fund 214 239
DFA U.S. Small-Cap Value Portfolio 414 466
GMO Global Equity Allocation 80 95
Harbor Midcap Growth I 149 164
------------ ---------------
Total Equity Mutual Funds 21,352 21,133
Equity Index Funds:
NTGI S&P 500 Equity Index Fund 452 511
NTGI Russell 2000 Index Fund 184 223
NTGI EAFE Index Fund 94 118
------------ ---------------
Total US Stock Index Funds 730 852
Bond Funds:
PIMCO High Yield Fund 456 487
PIMCO Foreign Bond Fund 197 193
GMO Emerging Country Debt Share Fund 526 538
PIMCO Separately Managed I Account 23,848 26,502
PIMCO Separately Managed B Account 2,618 2,939
------------ ---------------
Total Bond Mutual Funds 27,645 30,659
11
Schedule I
Page 2 of 2
CENTEL RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
EIN: 48-0498479
Plan #017
Schedule H, Line 4(i) - Schedule of Assets (Held at End of Year) (Cont'd)
December 31, 2003
(Thousands of Dollars)
Identity of Issue Cost Current Value
--------------------------------------------------- ------------- ----------------
Short-Term Investments:
NTGI Short-term $ 1,584 $ 1,584
Fidelity Retirement Market Account** 14 14
Fidelity Investment Cash Portolio** 1,411 1,411
------------ ----------------
Total Short-Term Investments 3,009 3,009
Other Funds:
Conservative Growth Portfolio 5 5
Moderate Growth Portfolio 101 109
Balanced Growth Portfolio 187 205
High Growth Portfolio 54 64
Aggressive Growth Portfolio 57 67
------------ ----------------
Total Other Investments 404 450
Participant Loans 5,807 5,807
------------ ----------------
Total Investments $ 166,349 $ 126,530
------------ ----------------
------------ ----------------
** Indicates party-in-interest to the Plan.
12
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Employee Benefits Committee, which administers the Plan, has duly caused this
annual report to be signed on its behalf by the undersigned, hereunto duly
authorized.
Centel Retirement Savings Plan
for Bargaining Unit Employees
By: /s/ E. J. Holland, Jr.
E. J. Holland, Jr.
Date: June 25, 2004 Employee Benefits Committee
EXHIBIT INDEX
Exhibit Number
23 Consent of Independent Registered Public Accounting Firm