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:
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
SPRINT RETIREMENT SAVINGS PLAN
FOR BARGAINING UNIT EMPLOYEES
2003 ANNUAL REPORT
WITH
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
SPRINT 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 2
the Years Ended December 31, 2003, 2002, and 2001
o Notes to Financial Statements 3
Supplemental Schedule
o Schedule I Schedule H, Line 4(i): Schedule of Assets 11
(Held at End of Year)
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 Sprint 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
SPRINT 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 $ 238,691 $ 196,091
Receivables:
Receivables for unsettled security sales 120 13
Transfers receivable 48 33
Contributions receivable 1 -
Other receivables 0 -
Accrued interest and dividend income 2 2
------------ -------------
Total assets 238,862 196,139
------------ -------------
PLAN LIABILITIES
Forfeiture payable 0 1
Accrued investment expenses 0 0
Payable for unsettled security purchases 146 0
Other payables 85 82
------------ -------------
Total liabilities 231 83
------------ -------------
Net assets available for benefits $ 238,631 $ 196,056
============ =============
See Notes to Financial Statements
1
SPRINT 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 $ 663 $ 869 $ 2,509
Dividends 3,235 2,522 3,209
Net realized and unrealized appreciation (depreciation)
in the current value of investments 33,453 (102,045) 1,606
------------- ------------- ------------
Net investment income (loss) 37,351 (98,654) 7,324
Contributions - employer (net) 6,659 5,318 6,772
Contributions - employee 12,212 13,363 14,638
Administrative fees (5) (3) (2)
Withdrawals (13,748) (15,853) (14,565)
Inter-plan fund transfers (net) 106 (416) (3,939)
------------- ------------- ------------
Net increase (decrease) 42,575 (96,245) 10,228
Net Assets Available for Benefits:
Beginning of year 196,056 292,301 282,073
------------- ------------- ------------
End of year $ 238,631 $ 196,056 $ 292,301
============= ============= ============
See Notes to Financial Statements
2
SPRINT 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 Sprint Retirement Savings Plan for
Bargaining Unit Employees (the Plan) provides only general information. For more
complete information participants should 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 Sprint Corporation
("Sprint" or the "Company") and adopted by a number of its subsidiaries that
provide local telecommunications services. The Plan is a qualified cash or
deferred arrangement as defined in section 401(k) of the Internal Revenue Code
(Code) and 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 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. Employees of the Company or one of
its subsidiaries that are not eligible to participate in the Plan may be
eligible to participate in one of the other similar plans established by the
Company.
Contributions
-------------
Participants may 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 the amount 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 $12,000 for the 2003 plan year, $11,000 for the
2002 plan year and $10,500 for the 2001 plan year. The amount 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.
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 stock with a market value equal to the Company contribution requirement.
The allocation of the Company matching contribution between FON and PCS shares
is subject to change on a quarterly basis based on the relative market
capitalization of FON and PCS common stocks. During the 2003 plan year, the
Company matching contribution invested in FON stock ranged from 69% to 81% and
the Company matching contribution invested in the PCS stock ranged from 31% to
19%. During the 2002 plan year, the Company matching contribution invested in
FON stock ranged from 43% to 68% and the Company matching contribution invested
in PCS stock ranged from 57% to 32%. During the 2001 plan year, the Company
matching contribution invested in FON stock ranged from 43% to 51% and the
Company matching contribution invested in PCS stock ranged from 57% to 49%.
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.
3
SPRINT 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 Dates Replacement Vehicle Effective
Name 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
SPRINT RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
Investment Funds (cont'd)
-------------------------
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. Daily fund exchanges in
the FON and PCS stock funds are limited to participant contributions.
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 participant contribution account balances
at all times.
5
SPRINT RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
Vesting (cont'd)
----------------
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.
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.
In-service 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 in-service withdrawal is the lesser of $1,000 or 50% of the amount
that may be withdrawn.
Participant Loans
-----------------
Participants may borrow up to 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 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 or loss, (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. 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.
6
SPRINT RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
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 generally 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.
Relcassifications
-----------------
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.
7
SPRINT RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
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.
(Thousands of Dollars)
As of December 31:
2003 2002
------------ --------------
Investments at Current Value as Determined by
Quoted Market Price:
Sprint FON Common Stock $ 65,587 $ 53,148
Sprint PCS Common Stock 27,885 19,960
Fidelity Magellan Fund 60,489 47,768
Fidelity Equity Income Fund 16,950 13,137
PIMCO Separately Managed I Account 34,982 35,999
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 $ 8,023 $ (18,011) $ (582)
PCS 6,364 (65,996) 12,984
Equity mutual funds 17,385 (20,163) (12,422)
Bond mutual funds 1,143 2,396 1,682
Equity index fund 385 (229) (59)
Other 153 (42) 3
------------ -------------- ------------
Total Appreciation (Depreciation) $ 33,453 $ (102,045) $ 1,606
============ ============== ============
8
SPRINT RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
4. NON-PARTICIPANT-DIRECTED INVESTMENTS
The funds comprised of Company stock (FON Stock Fund and PCS Stock Fund) include
both participant-directed and non-participant-directed amounts. Information
regarding the changes in net assets relating to these funds in total is as
follows:
(Thousands of Dollars)
For the Year Ended December 31:
2003 2002 2001
------------- ------------- -------------
Investment Income:
Interest $ 196 $ 285 $ 369
Dividends 1,914 1,735 1,686
Net realized and unrealized appreciation (depreciation)
in the current value of investments 14,387 (84,007) 12,414
------------- ------------- -------------
Net investment income (loss) 16,497 (81,987) 14,469
Contributions - employer (net) 6,728 5,300 6,772
Contributions - employee 3,562 4,150 4,956
Administrative fees (1) (1) (1)
Withdrawals (4,759) (4,590) (6,083)
Inter-plan fund transfers (net) 38 (42) (2,223)
Intra-plan fund transfers (net) (1,430) 1,070 (1,360)
------------- ------------- -------------
Net increase (decrease) 20,635 (76,100) 16,530
Net Assets Available for Benefits:
Beginning of year 74,959 151,059 134,529
------------- ------------- -------------
End of year $ 95,594 $ 74,959 $ 151,059
============= ============= =============
Of the above net assets, information about the net assets of the
non-participant-directed investments is as follows:
(Thousands of Dollars)
For the Year Ended December 31:
2003 2002 2001
------------- ------------- -------------
Net Assets:
Sprint Corporation:
FON Stock Fund $ 52,258 $ 42,606 $ 16,845
PCS Stock Fund 11,713 8,124 32,743
9
SPRINT RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003
5. RELATED PARTY TRANSACTIONS
Company contributions are made directly to the FON and PCS stock funds;
participants may also elect to direct a percentage of their contribution to
these funds. In 2003 the combined contributions approximated $6 million and $4
million to the FON and PCS stock funds, respectively. 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.
6. 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 Centel Retirement Savings Plan for
Bargaining Unit Employees against the Company, the committee that administers
the plans, the trustee for the plans, and various current and former officers
and directors of the Company. 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.
7. SUBSEQUENT EVENTS (unaudited)
Increased Diversification
-------------------------
Certain collective bargaining units have negotiated for the diversification of
Company matching contributions. Effective January 1, 2004, participants
represented by those collective bargaining units may diversify their Company
matching contributions based on the schedule below:
o For Company matching contributions made prior to January 1, 2004:
o In 2004, 20% of the Company matching contributions may be transferred
to other investment options.
o In each succeeding year (2005, 2006, 2007 and 2008), an additional 20%
of the Company matching contributions balance may be diversified.
o Company matching contributions made on or after January 1, 2004, may be
diversified beginning on the last day of the third year after the year the
contributions are made. For example, Company matching contributions
made in 2004 may be diversified on December 31, 2007. Similarly, Company
matching contributions made in 2005 may be diversified on December 31,
2008.
In addition, effective January 1, 2004, all employees age 55 or older may choose
to fully diversify all Company matching contributions once each year. The
previous age requirement was 60.
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, Company contributions are made only in FON stock to
the Company Stock Fund. Participants may also direct contributions to the
Company Stock Fund. The FON stock now represents the only outstanding common
stock of the Company.
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
SPRINT RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
EIN: 48-0457967
Plan #005
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** $ 76,210 $ 65,587
Sprint Corporation - PCS** 62,818 27,885
------------- ------------
Total common stocks 139,028 93,472
Equity Funds:
Fidelity Magellan Fund** 58,430 60,489
Fidelity Equity Income Fund** 15,184 16,950
Fidelity OTC Portfolio Fund** 4,682 3,820
Fidelity Overseas Fund** 1,698 1,646
Fidelity Dividend Growth Fund** 3,278 3,326
Capital Guardian International Equity Fund 41 51
Capital Guardian Emerging Market Equity Fund 53 58
Jennison Associates LLC Separately Managed Acct 112 136
Harris Associates, L.P. Separately Managed Acct 80 97
Wall Street Associates Separately Managed Acct 157 177
American Century Equity Income Fund 481 540
DFA U.S. Small-Cap Value Portfolio 829 941
GMO Global Equity Allocation 174 207
Harbor Midcap Growth I 240 258
------------- ------------
Total Equity Mutual Funds 85,439 88,696
Equity Index Funds:
NTGI S&P 500 Equity Index Fund 1,188 1,350
NTGI Russell 2000 Index Fund 265 310
NTGI EAFE Index Fund 149 165
------------- ------------
Total US Stock Index Funds 1,602 1,825
Bond Funds:
PIMCO High Yield Fund 205 216
PIMCO Foreign Bond Fund 98 97
GMO Emerging Country Debt Share Fund 783 762
PIMCO Separately Managed I Account 31,271 34,982
PIMCO Separately Managed B Account 2,586 2,936
------------- ------------
Total Bond Mutual Funds 34,943 38,993
11
Schedule I
Page 2 of 2
SPRINT RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
EIN: 48-0457967
Plan #005
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 $ 1,564 $ 1,564
Fidelity Retirement Market Account** 17 17
Fidelity Investment Cash Portolio** 2,164 2,164
------------- ---------------
Total Short-Term Investments 3,745 3,745
Other Funds:
Conservative Growth Portfolio 246 267
Moderate Growth Portfolio 162 176
Balanced Growth Portfolio 207 233
High Growth Portfolio 267 306
Aggressive Growth Portfolio 107 125
------------- ---------------
Total Other Investments 989 1,107
Participant Loans 10,853 10,853
------------- ---------------
Total Investments $ 276,599 $ 238,691
============= ===============
** 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.
Sprint 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