1
EXHIBIT 28 (c)
Securities and Exchange Commission
Washington, D.C. 20549
Form 11-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the calendar year ended December 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from __________ to __________
TRANSCORE RETIREMENT SAVINGS PLAN
---------------------------------
(Full title of the plan)
7611 Derry Street
Harrisburg, PA 17111
Plan's telephone number, including area code (717) 561-2400
Science Applications International Corporation
10260 Campus Point Drive, San Diego, California
92121 (Name of issuer of the securities held
pursuant to the plan and the address of its
principal executive office)
Registrant's telephone number, including area code (619) 546-6000
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the trustee (or other persons who administer the Plan) have duly caused this
annual report to be signed on its behalf by the undersigned hereunto duly
authorized.
TRANSCORE RETIREMENT SAVINGS PLAN
Date: April 23, 1998 BY:/s/ JOHN M. WORTHINGTON
--------------------------------------
John M. Worthington
Senior Vice President and
Chief Operating Officer
3
TRANSCORE RETIREMENT SAVINGS PLAN
INDEX TO FINANCIAL STATEMENTS
PAGE
Report of Independent Accountants F-2
Financial Statements:
Statements of Net Assets Available for Plan Benefits, with Fund Information
as of December 31, 1997 and 1996 F-3-F-4
Statements of Changes in Net Assets Available for Plan Benefits, with Fund
Information for the Years Ended December 31, 1997 and 1996 F-5-F-6
Notes to Financial Statements F-7-F-10
Additional Information*:
Schedule I: Schedule of Assets Held for Investment Purposes at
December 31, 1997 F-11
Schedule II: Schedule of Loans or Fixed Income Obligations at
December 31, 1997 F-12
Schedule III: Schedule of Reportable Transactions for the Year Ended
December 31, 1997 F-13
* Other supplemental schedules required by Section 2520.103-10 of the
Department of Labor Rules and Regulations for Reporting and Disclosure
under ERISA have been omitted because they are not applicable.
F-1
4
REPORT OF INDEPENDENT ACCOUNTANTS
To the Plan Administrator and Participants
of the TransCore Retirement Savings Plan
In our opinion, the financial statements listed in the accompanying index
present fairly, in all material respects, the net assets available for benefits
of the TransCore Retirement Savings Plan (the Plan) at December 31, 1997, and
the changes in net assets available for benefits for the year then ended, in
conformity with generally accepted accounting principles. 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 audit. We
conducted our audit of these statements in accordance with generally accepted
auditing standards which 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, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for the opinion expressed above. The financial
statements of the TransCore Retirement Savings Plan for the year ended December
31, 1996 were audited by other independent accountants whose report dated June
23, 1997 expressed an unqualified opinion on those statements.
Our audit was performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information included in
Schedules I through III is presented for purposes of additional analysis and is
not a required part of the basic financial statements but is additional
information required by ERISA. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and,
in our opinion, is fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
PRICE WATERHOUSE LLP
San Diego, California
April 3, 1998
F-2
5
TRANSCORE RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1997
- --------------------------------------------------------------------------------------------------------------------------
FUND INFORMATION
----------------------------------------------------------------------------------
MONEY
SHORT-TERM LONG-TERM MARKET WELLESLEY
FEDERAL GNMA CORPORATE PRIME INCOME WELLINGTON
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO FUND FUND
----------- ----------- ----------- ----------- ----------- -----------
Investments, at fair value
Science Applications International
Corporation Common Stock
(cost $1,392,907)
Vanguard Mutual Funds
(aggregate cost $7,684,316) $ 153,289 $ 230,780 $ 968,620 $ 737,374 $ 495,658 $ 2,634,417
Short-term investments and cash
(cost $77,650)
Loans to participants - principal
balance
----------- ----------- ----------- ----------- ----------- -----------
Net assets available for
plan benefits $ 153,289 $ 230,780 $ 968,620 $ 737,374 $ 495,658 $ 2,634,417
=========== =========== =========== =========== =========== ===========
Unit or share values (Note 2) $ 10.13 $ 10.43 $ 9.26 $ 1.00 $ 21.86 $ 29.45
=========== =========== =========== =========== =========== ===========
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1997
- -------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
INDEX INTERNATIONAL SAIC
500 WINDSOR II GROWTH LOAN COMMON
PORTFOLIO FUND PORTFOLIO FUND STOCK TOTAL
----------- ----------- ----------- ----------- ----------- -----------
Investments, at fair value
Science Applications International
Corporation Common Stock $ 2,563,314 $ 2,563,314
(cost $1,392,907)
Vanguard Mutual Funds
(aggregate cost $7,684,316) $ 1,368,292 $ 1,750,943 $ 699,077 9,038,450
Short-term investments and cash 77,983 77,983
(cost $77,650)
Loans to participants - principal
balance $ 87,480 87,480
----------- ----------- ----------- ----------- ----------- -----------
Net assets available for
plan benefits $ 1,368,292 $ 1,750,943 $ 699,077 $ 87,480 $ 2,641,297 $11,767,227
=========== =========== =========== =========== =========== ===========
Unit or share values (Note 2) $ 90.07 $ 28.62 $ 16.39 $ 34.78
=========== =========== =========== ===========
See accompanying notes to the financial statements
F-3
6
TRANSCORE RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1996
- --------------------------------------------------------------------------------------------------------------------------------
FUND INFORMATION
---------------------------------------------------------------------------------------
MONEY
SHORT-TERM LONG-TERM MARKET WELLESLEY INDEX
FEDERAL GNMA CORPORATE PRIME INCOME WELLINGTON 500
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO FUND FUND PORTFOLIO
---------- ---------- ---------- ---------- ---------- ---------- ----------
Investments, at fair value
Science Applications International
Corporation Common Stock
(cost $1,292,490)
Vanguard Mutual Funds
(aggregate cost $5,556,829) $ 114,064 $ 142,664 $ 895,224 $ 662,276 $ 394,655 $2,038,251 $ 637,352
Short-term investments and cash
Loans to participants -
principal balance
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net assets available for plan
benefits $ 114,064 $ 142,664 $ 895,224 $ 662,276 $ 394,655 $2,038,251 $ 637,352
========== ========== ========== ========== ========== ========== ==========
Unit or share values (Note 2) $ 10.13 $ 10.22 $ 9.26 $ 1.00 $ 20.51 $ 26.15 $ 69.16
========== ========== ========== ========== ========== ========== ==========
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1996
- --------------------------------------------------------------------------------------------------------------------------------
FUND INFORMATION
---------------------------------------------------------------------------------------
INTERNATIONAL SAIC
WINDSOR II GROWTH LOAN COMMON
FUND PORTFOLIO FUND STOCK TOTAL
---------- ---------- ---------- ---------- ----------
Investments, at fair value
Science Applications International
Corporation Common Stock $1,681,467 $1,681,467
(cost $1,292,490)
Vanguard Mutual Funds
(aggregate cost $5,556,829) $ 930,975 $ 510,143 6,325,604
Short-term investments and cash
Loans to participants -
principal balance $ 78,618 78,618
---------- ---------- ---------- ---------- ----------
Net assets available for plan
benefits $ 930,975 $ 510,143 $ 78,618 $1,681,467 $8,085,689
========== ========== ========== ========== ==========
Unit or share values (Note 2) $ 23.83 $ 16.46 $ 22.83
========== ========== ==========
See accompanying notes to the financial statements
F-4
7
TRANSCORE RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1997
- ------------------------------------------------------------------------------------------------------------------------
FUND INFORMATION
---------------------------------------------------------------------------------
MONEY
SHORT-TERM LONG-TERM MARKET WELLESLEY
FEDERAL GNMA CORPORATE PRIME INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO FUND
------------ ------------ ------------ ------------ ------------
Investment income:
Interest
Dividends $ 8,330 $ 12,709 $ 70,346 $ 36,331 $ 54,610
Net appreciation (depreciation) in
fair value of investments 412 4,077 47,723 30,294
------------ ------------ ------------ ------------ ------------
Total investment income 8,742 16,786 118,069 36,331 84,904
Contributions:
TransCore Company Contributions 8,810 11,813 20,538 24,109 23,042
Participant Contributions 31,430 41,242 68,823 80,321 87,831
Rollover Contributions 4,818 21,468 29,821 3,926
------------ ------------ ------------ ------------ ------------
Total additions 53,800 91,309 207,430 170,582 199,703
------------ ------------ ------------ ------------ ------------
Withdrawals (8,415) (9,272) (83,688) (26,684) (3,675)
Net transfers among funds (6,160) 6,079 (50,346) (68,800) (95,025)
------------ ------------ ------------ ------------ ------------
Net increase 39,225 88,116 73,396 75,098 101,003
Net assets available for plan benefits:
Beginning of year 114,064 142,664 895,224 662,276 394,655
------------ ------------ ------------ ------------ ------------
End of year $ 153,289 $ 230,780 $ 968,620 $ 737,374 $ 495,658
============ ============ ============ ============ ============
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1997
- ----------------------------------------------------------------------------------------------------------------------------------
FUND INFORMATION
-------------------------------------------------------------------------------------------
INDEX INTERNATIONAL SAIC
WELLINGTON 500 WINDSOR II GROWTH LOAN COMMON
FUND PORTFOLIO FUND PORTFOLIO FUND STOCK
------------ ------------ ------------ ------------ ------------ ------------
Investment income:
Interest $ 6,051
Dividends $ 221,363 $ 26,075 $ 154,631 $ 29,254
Net appreciation (depreciation) in
fair value of investments 257,960 245,064 211,482 (17,145) $ 892,863
------------ ------------ ------------ ------------ ------------ ------------
Total investment income 479,323 271,139 366,113 12,109 6,051 892,863
Contributions:
TransCore Company Contributions 60,293 81,923 93,641 35,341 64,327
Participant Contributions 232,456 350,700 388,771 146,388 243,369
Rollover Contributions 16,287 58,868 56,110 15,415 39,015
------------ ------------ ------------ ------------ ------------ ------------
Total additions 788,359 762,630 904,635 209,253 6,051 1,239,574
------------ ------------ ------------ ------------ ------------ ------------
Withdrawals (192,213) (145,176) (176,640) (7,450) (13,207) (285,368)
Net transfers among funds 20 113,486 91,973 (12,869) 16,018 5,624
------------ ------------ ------------ ------------ ------------ ------------
Net increase 596,166 730,940 819,968 188,934 8,862 959,830
Net assets available for plan benefits:
Beginning of year 2,038,251 637,352 930,975 510,143 78,618 1,681,467
------------ ------------ ------------ ------------ ------------ ------------
End of year $ 2,634,417 $ 1,368,292 $ 1,750,943 $ 699,077 $ 87,480 $ 2,641,297
============ ============ ============ ============ ============ ============
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1997
- -------------------------------------------------------------------------------------
TOTAL
------------
Investment income:
Interest $ 6,051
Dividends 613,649
Net appreciation (depreciation) in
fair value of investments 1,672,730
------------
Total investment income 2,292,430
Contributions:
TransCore Company Contributions 423,837
Participant Contributions 1,671,331
Rollover Contributions 245,728
------------
Total additions 4,633,326
------------
Withdrawals ) (951,788)
Net transfers among funds
------------
Net increase 3,681,538
Net assets available for plan benefits:
Beginning of year 8,085,689
------------
End of year $ 11,767,227
============
See accompanying notes to the financial statements
F-5
8
TRANSCORE RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1996
- ----------------------------------------------------------------------------------------------------------------------------------
FUND INFORMATION
-----------------------------------------------------------------------------------------------
MONEY
SHORT-TERM LONG-TERM MARKET WELLESLEY
FEDERAL GNMA CORPORATE PRIME INCOME WELLINGTON
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO FUND FUND
------------- ------------- ------------- ------------- ------------- ----------------
Investment income:
Interest
Dividends $ 6,672 $ 9,130 $ 83,583 $ 34,155 $ 34,908 $ 156,599
Net appreciation (depreciation)
in fair value of investments (1,413) (2,399) (77,531) (1,409) 123,401
--------- --------- --------- --------- --------- -----------
Total investment income 5,259 6,731 6,052 34,155 33,499 280,000
Contributions:
TransCore Company Contributions 5,668 6,918 22,552 26,482 14,671 42,646
Participant Contributions 21,535 23,944 75,819 91,449 56,321 159,421
Rollover Contributions 972 33,735 55,671
--------- --------- --------- --------- --------- -----------
Total additions 33,434 37,593 104,423 185,821 104,491 537,738
--------- --------- --------- --------- --------- -----------
Withdrawals (3,392) (4,002) (21,655) (19,622) (19,111) (79,968)
Net transfers among funds (27,349) (15,727) (219,651) (161,144) (166,565) (192,045)
--------- --------- --------- --------- --------- -----------
Net increase (decrease) 2,693 17,864 (136,883) 5,055 (81,185) 265,725
Net assets available for plan
benefits:
Beginning of year 111,371 124,800 1,032,107 657,221 475,840 1,772,526
--------- --------- --------- --------- --------- -----------
End of year $ 114,064 $ 142,664 $ 895,224 $ 662,276 $ 394,655 $ 2,038,251
========= ========= ========= ========= ========= ===========
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1996
- ----------------------------------------------------------------------------------------------------------------------------------
FUND INFORMATION
------------------------------------------------------------------------------------------
INDEX INTERNATIONAL SAIC
500 WINDSOR II GROWTH LOAN COMMON
PORTFOLIO FUND PORTFOLIO FUND STOCK TOTAL
------------ ------------- ------------- --------- -------------- ---------------
Investment income:
Interest $ 5,793 $ 5,793
Dividends $ 12,207 $ 58,631 $ 21,305 417,190
Net appreciation (depreciation)
in fair value of investments 84,223 83,202 32,339 $ 229,729 470,142
--------- --------- --------- -------- ----------- -----------
Total investment income 96,430 141,833 53,644 5,793 229,729 893,125
Contributions:
TransCore Company Contributions 26,549 37,095 17,080 6,289 205,950
Participant Contributions 109,947 149,284 68,519 22,776 779,015
Rollover Contributions 53,784 75,895 31,910 49,919 301,886
--------- --------- --------- -------- ----------- -----------
Total additions 286,710 404,107 171,153 5,793 308,713 2,179,976
--------- --------- --------- -------- ----------- -----------
Withdrawals (9,735) (15,405) (8,924) (9,083) (36,104) (227,001)
Net transfers among funds 47,479 114,818 27,145 22,576 570,463
--------- --------- --------- -------- ----------- -----------
Net increase (decrease) 324,454 503,520 189,374 19,286 843,072 1,952,975
Net assets available for plan benefits:
Beginning of year 312,898 427,455 320,769 59,332 838,395 6,132,714
--------- --------- --------- -------- ----------- -----------
End of year $ 637,352 $ 930,975 $ 510,143 $ 78,618 $ 1,681,467 $ 8,085,689
========= ========= ========= ======== =========== ===========
See accompanying notes to the financial statements
F-6
9
TRANSCORE RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - DESCRIPTION OF RETIREMENT SAVINGS PLAN
THE PLAN
The following description of the TransCore Retirement Savings Plan (the "Plan")
provides only general information. Participants should refer to the Plan
agreement for a more comprehensive description of the Plan's provisions.
The Plan is a defined contribution plan which became effective January 1, 1986.
The Plan is subject to the provisions of the Employee Retirement Income Security
Act of 1974 (ERISA) and the Internal Revenue Code.
The purpose of the Plan is to encourage and assist employees in following a
systematic savings program suited to their individual objectives, and to provide
an opportunity for employees to become stockholders of Science Applications
International Corporation (SAIC). TransCore (the "Company") is a wholly-owned
subsidiary of SAIC. Any employee of the Company who was hired before April 1,
1986 or any employee who has completed at least one year of continuous service,
as determined in accordance with the Company's service rules, or who has been
compensated for 1,000 or more hours in a period of 12 consecutive months is
eligible for participation in the Plan.
Eligible employees may participate in the Plan by authorizing the Company to
make biweekly salary deferrals. The Plan permits participants to elect to defer
up to 15% of compensation. The Company will match 50% of the Participant's
salary deferrals on the first 4% of eligible compensation. At the discretion of
the Board of Directors, the Company may make additional profit-sharing
contributions. All of the above savings and elections are subject to regulatory
and Plan limitations.
Company matching and profit sharing contributions vest as follows:
VESTED
YEARS OF SERVICE PERCENTAGE
---------------- ----------
Less than one year 0
After one year, but less than two years 20
After two years, but less than three years 40
After three years, but less than four years 60
After four years, but less than five years 80
After five years 100
A participant with less than five years of service who withdraws any matched
savings will forfeit a portion of related company contributions in accordance
with specific plan provisions. The nonvested portion of the participant's
profit-sharing contribution account is forfeited at the end of the Plan year in
which termination occurs and is reallocated as additional profit-sharing
contributions to the remaining eligible participants. The nonvested portion of
the participant's matching contribution account is forfeited at the
participant's date of termination and is used to reduce future employer matching
contributions to the Plan. Participants who retire may withdraw their vested
balances in a lump sum payment at any time prior to attaining the age of 70 1/2.
Participants may borrow up to one-half of their vested account balances subject
to certain minimum and maximum loan limitations. All approved loans require the
participant to pledge the vested portion of his/her account balance as plan
collateral. The loan must be repaid in regular installments through payroll
deductions over a period not to exceed five years.
F-7
10
TRANSCORE RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
INVESTMENT FUNDS
Participants may allocate contributions among fund options at their discretion.
Participants may transfer balances between all funds with the exception of the
SAIC Common Stock Fund, which can receive amounts only through contributions.
The investment options offered by the Plan are described below:
Vanguard Group Funds
Each of the following mutual funds has its own investment objectives and varying
degrees of risk.
Short-Term Federal Portfolio - Seeks a high level of interest income and
modest fluctuations in share price by investing primarily in short-term
securities issued by the U.S. government and its agencies.
GNMA Portfolio - Seeks a high-level of interest income by investing in a broad
range of mortgage-backed securities issued by the Government National Mortgage
Association.
Long-Term Corporate Portfolio - Seeks a high and stable level of interest
income by investing in a widely diversified group of long-term bonds.
Money Market Prime Portfolio - Seeks interest income and a stable share price
by investing in short-term, high quality money market instruments issued by
financial institutions, non-financial corporations and the U.S. government and
its agencies.
Wellesley Income Fund - Seeks a high level of income and long-term growth of
income by investing in high-quality long-term and intermediate-term bonds and
dividend-paying stocks.
Wellington Fund - Seeks long-term growth of capital and income by investing in
stocks and bonds.
Index 500 Portfolio - Seeks long-term growth of capital by investing in the
shares of companies included in the Standard & Poor's 500 index.
Windsor II Fund - Seeks long-term growth of capital by investing in a
diversified group of out-of-favor stocks of large capitalization companies.
International Growth Portfolio - Seeks long-term growth of capital by
investing in stocks of high quality, seasoned companies outside of the United
States.
Loan Fund
This fund represents the principal balance of amounts loaned to participants.
SAIC Common Stock Fund
This fund purchases shares of SAIC Class A Common stock.
F-8
11
TRANSCORE RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
ADMINISTRATION
The designated Trustee of the Plan is State Street Bank. The administration of
the Plan is vested in the Company which may designate one or more persons to
operate and administer the Plan. Expenses of administering the Plan are paid by
the Company.
Although it has not expressed any intent to do so, the Company has the right
under the Plan to discontinue its contributions at any time and to terminate the
Plan subject to the provisions of ERISA.
NOTE 2 - SUMMARY ACCOUNTING POLICIES
INVESTMENT VALUATION AND INCOME RECOGNITION
The accompanying financial statements are prepared on the accrual basis of
accounting.
Investments in the Vanguard mutual funds are valued at quoted market prices
which represent the net asset value of shares held by the Plan at year end.
Loans to participants, short-term investments and cash are valued at cost which
approximates fair value. SAIC Common Stock is carried at fair value. A general
public market does not exist for SAIC's Common Stock; therefore, the fair market
value of SAIC's Common Stock is determined pursuant to a stock price formula and
valuation process which includes an appraisal prepared by an independent firm.
Periodic determinations of the fair market value of SAIC's Common Stock are made
by the Board of Directors, with the assistance of the independent appraisal
firm. The Board of Directors of SAIC reserves the right to alter the formula.
Investment income is recorded when earned.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires the Plan Administrator to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
NOTE 3 - REALIZED AND UNREALIZED GAINS AND LOSSES
Realized and unrealized gains and losses are calculated based upon the
historical cost of assets. Such gains and losses are computed on a current value
basis for the Form 5500. This difference may result in classification
differences between realized and unrealized gains.
NOTE 4 - INCOME TAX STATUS
The TransCore Retirement Savings Plan is a qualified plan pursuant to Section
401(a) of the Internal Revenue Code ("the Code") and the related Trusts are
exempt from federal taxation under Section 401(a) of the Code. A favorable tax
determination letter dated March 24, 1994 has been received by the Plan. The
Plan has been amended since receiving this determination letter. However, the
Plan Administrator and the Plan's tax counsel believe that the Plan is designed
and currently being operated in compliance with the applicable provisions of the
Code. Accordingly, no provision has been made for federal income taxes in the
accompanying financial statements.
F-9
12
TRANSCORE RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - SUBSEQUENT EVENTS
Effective with the Plan year beginning January 1, 1998, the Vanguard Group will
replace State Street Bank as the Trustee of the Plan.
F-10
13
ADDITIONAL INFORMATION
SCHEDULE I
TRANSCORE RETIREMENT SAVINGS PLAN
FORM 5500 ITEM 27(a) - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1997
- -----------------------------------------------------------------------------------------------------------------------------
IDENTITY OF SHARES CURRENT
ISSUE DESCRIPTION OR UNITS COST VALUE
Mutual Funds:
The Vanguard Group Vanguard Short-Term Federal 15,132 $ 150,544 $ 153,289
of Investment Portfolio
Companies
Vanguard GNMA Portfolio 22,126 222,739 230,780
Vanguard Long-Term Corporate
Portfolio 104,602 879,164 968,620
Vanguard Money Market Prime
Portfolio 737,374 737,374 737,374
Vanguard Wellesley Income Fund 22,674 444,083 495,658
Vanguard Wellington Fund 89,453 2,062,957 2,634,417
Vanguard Index 500 Portfolio 15,191 1,056,471 1,368,292
Vanguard Windsor II Fund 61,179 1,457,772 1,750,943
Vanguard International Growth
Portfolio 42,653 673,212 699,077
Participant Loans Due July 1998 to Oct. 2002; 87,480 87,480
7.4% - 12%
Common Stock:
Science Applications
International Corporation * Class A Common Stock 73,700 1,392,907 2,563,314
Short-Term Investments 77,983 77,650 77,983
and Cash ----------- ------------
Total Investment Portfolio $ 9,242,353 $ 11,767,227
=========== ============
* Represents a party-in-interest.
F-11
14
ADDITIONAL INFORMATION
SCHEDULE II
TRANSCORE RETIREMENT SAVINGS PLAN
FORM 5500 ITEM 27(b) - SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
DECEMBER 31, 1997
- --------------------------------------------------------------------
ORIGINAL AMOUNT RECEIVED UNPAID
IDENTITY AND AMOUNT DURING REPORTING YEAR BALANCE AT
ADDRESS OF OBLIGOR OF LOAN PRINCIPAL INTEREST END OF YEAR
Russell B Einarson
42 Blueberry Ridge
Westfield, MA 01085 $ 4,907 $ 803 $ 187 $ 2,333
Deborah Hoffman
314 Dimpsey Road
Hallifax, VA 17032 $ 4,400 $ - $ - $ 4,001
FORM 5500 ITEM 27(B) - SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
DECEMBER 31, 1997
- ----------------------------------------------------------------------------------------------
DETAILED DESCRIPTION OF LOANS INCLUDING
DATE OF MAKING AND MATURITY, INTEREST RATE,
THE TYPE AND VALUE OF COLLATERAL, ANY
IDENTITY AND RENEGOTIATION OF THE LOAN AND THE TERMS OF AMOUNT OVERDUE
ADDRESS OF OBLIGOR THE RENEGOTIATION AND OTHER MATERIAL ITEMS PRINCIPAL INTEREST
Russell B Einarson
42 Blueberry Ridge Loan date: 12/30/94; Maturity date: 1/6/00;
Westfield, MA 01085 Interest rate: 8.3%; Collateral - Vested balance $ 2,333 $ -
Deborah Hoffman
314 Dimpsey Road Loan date: 4/25/95; Maturity date: 7/6/00;
Hallifax, VA 17032 Interest rate: 9%; Collateral - Vested balance $ 4,001 $ -
F-12
15
ADDITIONAL INFORMATION
SCHEDULE II
TRANSCORE RETIREMENT SAVINGS PLAN
FORM 5500 ITEM 27(d) - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
- ------------------------------------------------------------------------------------------------------------------------------
TRANSACTIONS OR SERIES OF TRANSACTIONS IN EXCESS OF 5% OF THE
CURRENT VALUE OF PLAN ASSETS AS OF JANUARY 1, 1997
CONTRACT CURRENT
VALUE/ VALUE ON
PARTY DESCRIPTION NUMBER OF PURCHASE SELLING COST OF TRANSACTION GAIN ON
INVOLVED OF ASSET TRANSACTIONS PRICE PRICE ASSET DATE TRANSACTION
Vanguard Index 500 Portfolio 8 $ 433,859 $ 433,859
2 $ 459,202 $ 455,525 $ 3,677
Vanguard Windsor II Fund 9 $ 396,693 $ 396,693
1 $ 410,046 $ 407,083 $ 2,963
SAIC SAIC Common Stock Fund 7 $ 198,597 $ 198,597
3 $ 420,955 $ 420,955 $ -
F-13