UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
Annual Report Pursuant to Section 15(d) of the Securities Exchange Act of 1934
For the fiscal year end December 31, 2004
CIBER, Inc. Savings 401(k) Plan
(Full title of plan)
CIBER, Inc.
5251 DTC Parkway, Suite 1400, Greenwood Village, Colorado 80111
(Name of issuer of the securities held pursuant to the plan and the address of its principal executive offices)
CIBER, Inc. Savings 401(k) Plan
Index to Financial Statements and Supplemental Schedules
December 31, 2004
F-1
The Plan Administrator of the
CIBER, Inc. Savings 401(k) Plan
We have audited the accompanying statements of net assets available for benefits of CIBER, Inc. Savings 401(k) Plan as of December 31, 2004 and 2003, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plans 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. We were not engaged to perform an audit of the Plans internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plans internal control over financial reporting. Accordingly, we express no such opinion. An audit also 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 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, 2004 and 2003, and the changes in its net assets available for benefits for the years then ended, 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 schedules of assets (held at end of year) as of December 31, 2004, and delinquent participant contributions for the year then ended, 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 Labors Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. These supplemental schedules are the responsibility of the Plans 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 |
|
Denver, Colorado
June 23, 2005
F-2
CIBER, INC. SAVINGS 401(k) PLAN
Statements of Net Assets Available for Benefits
December 31, 2004 and 2003
|
|
2004 |
|
2003 |
|
||
Investments, at fair value: |
|
|
|
|
|
||
CIBER, Inc. common stock |
|
$ |
11,449,820 |
|
$ |
10,819,747 |
|
Mutual funds |
|
74,284,839 |
|
60,739,562 |
|
||
Pooled separate accounts |
|
85,110,254 |
|
77,498,976 |
|
||
Participant loans |
|
2,370,385 |
|
1,739,831 |
|
||
Total investments |
|
173,215,298 |
|
150,798,116 |
|
||
|
|
|
|
|
|
||
Receivables: |
|
|
|
|
|
||
Employer contributions |
|
|
|
267 |
|
||
Participant contributions |
|
|
|
2,675 |
|
||
Total receivables |
|
|
|
2,942 |
|
||
Net assets available for benefits |
|
$ |
173,215,298 |
|
$ |
150,801,058 |
|
See accompanying notes to financial statements.
F-3
CIBER, INC. SAVINGS 401(k) PLAN
Statements of Changes in Net Assets Available for Benefits
Years ended December 31, 2004 and 2003
|
|
2004 |
|
2003 |
|
||
Additions to net assets attributed to: |
|
|
|
|
|
||
Net increase in fair value of investments |
|
$ |
16,981,877 |
|
$ |
29,705,738 |
|
Interest and dividend income |
|
490,102 |
|
981,964 |
|
||
Net investment gain |
|
17,471,979 |
|
30,687,702 |
|
||
|
|
|
|
|
|
||
Contributions: |
|
|
|
|
|
||
Participants, including rollovers |
|
24,761,368 |
|
21,484,395 |
|
||
Employer |
|
3,600,319 |
|
4,386,791 |
|
||
Total contributions |
|
28,361,687 |
|
25,871,186 |
|
||
|
|
|
|
|
|
||
Transfers of assets from merged plans |
|
11,023,678 |
|
6,992,724 |
|
||
Total additions |
|
56,857,344 |
|
63,551,612 |
|
||
|
|
|
|
|
|
||
Deductions from net assets attributed to: |
|
|
|
|
|
||
Distributions to participants |
|
34,399,803 |
|
16,818,021 |
|
||
Loan and administrative fees |
|
43,301 |
|
7,100 |
|
||
Total deductions |
|
34,443,104 |
|
16,825,121 |
|
||
|
|
|
|
|
|
||
Net increase |
|
22,414,240 |
|
46,726,491 |
|
||
|
|
|
|
|
|
||
Net assets available for benefits: |
|
|
|
|
|
||
Beginning of year |
|
150,801,058 |
|
104,074,567 |
|
||
End of year |
|
$ |
173,215,298 |
|
$ |
150,801,058 |
|
See accompanying notes to financial statements.
F-4
CIBER, INC. SAVINGS 401(k) PLAN
December 31, 2004 and 2003
(1) Description of the Plan
The following description of the CIBER, Inc. Savings 401(k) Plan (the Plan) provides only general information. For a more complete description of the Plan, participants should refer to the Summary Plan Description or the Plan Agreement, which are available from the plan administrator.
(a) General
The Plan is a defined contribution plan covering substantially all employees of CIBER, Inc. and certain of its subsidiaries (CIBER or the Company). The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA).
(b) Contributions and Vesting
Participants may contribute up to 25% of pre-tax annual compensation. Contributions are subject to certain limitations. Participants may also contribute amounts representing distributions from other qualified defined contribution or benefit plans (rollovers). Participants can change their contribution percentage at any time. Company contributions are based on the participants years of service and the participants contribution and range from ½% to 3% of qualified compensation. Participants are immediately vested in their contributions plus actual earnings thereon. Vesting in the Companys matching contribution plus actual earnings thereon is based on years of service. A participant is 100% vested after six years of service. If a participant terminates prior to vesting, unvested amounts are forfeited and are used to reduce future employer contributions. At December 31, 2004 and 2003 unallocated forfeited accounts totaled $28,340 and $360,916, respectively. In 2004 and 2003, employer contributions were reduced by $2,074,882 and $494,676, respectively, from forfeited accounts.
(c) Investment Options
During 2003, the Plan custodian and record keeper changed from Great-West Life & Annuity Insurance Company (Great-West) to Principal Life Insurance Company (Principal). The Plans assets are invested in various investment options offered by
F-5
Principal and in CIBER, Inc. common stock, as directed by the participants. Participants may invest their account balance in the various investment options in 1% increments. Participants may change their investment options on a daily basis.
(d) Distributions and Loans
Participants are generally entitled to a distribution from the Plan upon termination of employment, retirement, disability or death. Terminated participants are entitled to receive only the vested percentage of their account balance and the remainder of the account is forfeited. For other situations there are various methods by which benefits may be distributed depending on date of employment, marital status and participant elections. Distributions are recorded when paid. Participants may borrow from their account a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their vested account balance. Interest on loans is charged at the prime rate as of the processing date of the loan, plus 1% and ranged from 5.00% to 10.50% as of December 31, 2004. Loans are generally repaid through payroll deductions. Loans require minimum per paycheck payment amounts. Loans must be repaid within five years, except that the plan administrator may approve a longer term for loans to acquire a principal residence. Participants pay a loan origination fee of $50 per loan to Principal.
(e) Expenses
In general, plan expenses, other than broker commissions, portfolio transaction fees and administrative service fees on the accounts of non-employee participants, are paid by the Company.
(f) Plan Termination
Although the Company has not expressed any intent to terminate the Plan, it retains the right under the Plan to terminate the Plan subject to the provisions of ERISA. In the event of termination, participants will become 100% vested in their accounts.
F-6
(2) Summary of Significant Accounting Policies
(a) Basis of Presentation
The accompanying financial statements have been prepared on the accrual basis of accounting.
(b) Investments
Investments are stated at fair value. The fair values of marketable securities and pooled separate accounts are determined based on quoted market values. The fair value of mutual funds are valued at the net asset value per share as quoted by the investment company and is generally determined based on the market values of the securities included in the underlying funds. Participant loans are valued at cost, which approximates fair value. Investment transactions are recorded on the date of purchase or sale (trade-date). Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date.
(c) Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates that affect the amounts reported in the financial statements and accompanying notes to the financial statements. Actual results could differ from those estimates.
F-7
(3) Investments
Investments greater than 5% of net assets at December 31, were:
|
|
Fair Value |
|
||||
|
|
2004 |
|
2003 |
|
||
|
|
|
|
|
|
||
CIBER, Inc. Common Stock |
|
$ |
11,449,820 |
|
$ |
10,819,747 |
|
Principal Money Market Separate Account |
|
19,013,039 |
|
23,215,787 |
|
||
Principal Large Cap Stock Index Separate Account |
|
11,363,049 |
|
11,103,152 |
|
||
Russell LifePoints Aggressive Strategy (D) Separate Account |
|
9,286,407 |
|
9,506,575 |
|
||
Russell LifePoints Equity Aggressive Strategy (D) Separate Account |
|
11,332,046 |
|
11,501,464 |
|
||
Legg Mason Value Trust Fund |
|
13,752,336 |
|
11,646,247 |
|
||
American Century Ultra Investment Fund |
|
9,908,056 |
|
10,439,128 |
|
||
American Funds Growth Fund of America R3 Fund |
|
16,724,377 |
|
13,948,496 |
|
||
Net increase in fair value of investments for the years ended December 31, including realized gains and losses, was as follows:
|
|
2004 |
|
2003 |
|
||
|
|
|
|
|
|
||
CIBER, Inc. Common Stock |
|
$ |
1,338,608 |
|
$ |
6,376,039 |
|
Mutual Funds |
|
8,404,353 |
|
21,714,529 |
|
||
Pooled Separate Accounts |
|
7,238,916 |
|
1,615,170 |
|
||
|
|
$ |
16,981,877 |
|
$ |
29,705,738 |
|
F-8
(4) Tax Status
The underlying non-standardized prototype plan has received
an opinion letter from the Internal Revenue Service (IRS) dated August 7,
2001, stating that the form of the plan is qualified under Section 401 of
the Internal Revenue Code (Code), and therefore,
the related trust is exempt from taxation.
In accordance with Revenue Procedure 2002-6 and Announcement
2001-77, the Plan Sponsor has determined that it is eligible to and has chosen
to rely on the current IRS prototype plan opinion letter. Subsequent to this opinion letter by the
Internal Revenue Service, 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 is
qualified and the related trust is tax exempt.
(5) Transfers of Assets from Merged Plans
CIBER has acquired the outstanding common stock of certain companies that had their own similar defined contribution plans. During 2004 and 2003, certain of these plans were merged with the Plan and their respective assets were transferred into the Plan.
(6) Risks and Uncertainties
The Plan provides for various investment options. Investments, in general, are exposed to various risks, such as interest rates, credit and overall market volatility. The Plans exposure to credit loss in the event of nonperformance of investments is limited to the carrying value of such investments. Due to the level of risk associated with certain investments, it is reasonably possible that changes in the value of investments will occur in the near term and that such changes could materially affect the amounts reported in the statements of net assets available for benefits.
(7) Party-in-Interest Transactions
Certain plan investments are units of pooled separate accounts, managed by Principal. Principal is the custodian and record keeper for the Plan and therefore these transactions are considered party-in-interest transactions.
F-9
CIBER, INC. SAVINGS 401(k) PLAN
Schedule H, Line 4iSchedule of Assets (Held At End of Year)
December 31, 2004
|
|
Identity |
|
Description |
|
Current Value |
|
|
|
|
|
|
|
|
|
|
|
* |
|
CIBER, Inc. |
|
Common Stock |
|
$ |
11,449,820 |
|
* |
|
Principal Money Mkt Sep Acct |
|
Pooled Separate Accounts |
|
19,013,039 |
|
|
* |
|
Principal Bond and Mtg Sep Acct |
|
Pooled Separate Accounts |
|
4,012,446 |
|
|
* |
|
Principal Lg Cp Stk Idx Sep Acct |
|
Pooled Separate Accounts |
|
11,363,049 |
|
|
* |
|
Principal Ptr Lg-Cap Value Sep Acct |
|
Pooled Separate Accounts |
|
788,461 |
|
|
* |
|
Russ Life Agg Str (D) Sep Acct |
|
Pooled Separate Accounts |
|
9,286,407 |
|
|
* |
|
Russ Life Bal Str (D) Sep Acct |
|
Pooled Separate Accounts |
|
5,159,017 |
|
|
* |
|
Russ Life Con Str (D) Sep Acct |
|
Pooled Separate Accounts |
|
1,199,743 |
|
|
* |
|
Russ Life Eqag St (D) Sep Acct |
|
Pooled Separate Accounts |
|
11,332,046 |
|
|
* |
|
Russ Life Mod Str (D) Sep Acct |
|
Pooled Separate Accounts |
|
2,950,664 |
|
|
* |
|
Principal Mid Cap Stk Idx Sep Acct |
|
Pooled Separate Accounts |
|
1,254,185 |
|
|
* |
|
Principal Ptr Sm-Cap Val I Sep Acct |
|
Pooled Separate Accounts |
|
2,463,699 |
|
|
* |
|
Principal Sm Cap Stk Idx Sep Acct |
|
Pooled Separate Accounts |
|
7,707,969 |
|
|
* |
|
Principal Real Est Sec Sep Acct |
|
Pooled Separate Accounts |
|
8,579,530 |
|
|
|
|
MFS Research Bond A Fund |
|
Mutual Fund |
|
1,564,583 |
|
|
|
|
Am Cent Eqty Inc Inv |
|
Mutual Fund |
|
7,520,106 |
|
|
|
|
Am Fds Wash Mut Inv R3 Fund |
|
Mutual Fund |
|
5,841,317 |
|
|
|
|
Legg Mason Value Trust Fund |
|
Mutual Fund |
|
13,752,336 |
|
|
|
|
Am Cent Ultra Inv Fund |
|
Mutual Fund |
|
9,908,056 |
|
|
|
|
Am Fds Grth Fd of Am R3 Fund |
|
Mutual Fund |
|
16,724,377 |
|
|
|
|
AIM Small Cap Growth A Fund |
|
Mutual Fund |
|
3,083,399 |
|
|
|
|
Fidelity Adv Mid Cap T Fund |
|
Mutual Fund |
|
3,153,112 |
|
|
|
|
Am Fds New Persp R3 Fund |
|
Mutual Fund |
|
4,514,960 |
|
|
|
|
Fidelity Adv Overseas T Fund |
|
Mutual Fund |
|
5,158,143 |
|
|
|
|
Janus Worldwide |
|
Mutual Fund |
|
3,064,449 |
|
|
* |
|
Participant loans |
|
5.0% to 10.5% |
|
2,370,385 |
|
|
|
|
|
|
|
|
$ |
173,215,298 |
|
* Party in interest.
See accompanying independent registered public accounting firms report.
F-10
CIBER, INC. SAVINGS 401(k) PLAN
Schedule H, Line 4aSchedule of Delinquent Participant Contributions
Year ended December 31, 2004
Participant Contributions Transferred |
|
Total that Constituted Nonexempt |
|
||
|
|
|
|
||
$ |
42,930 |
|
$ |
42,930 |
|
F-11
REQUIRED INFORMATION
The financial statements and schedules of the CIBER, Inc. Savings 401(k) Plan for the year ended December 31, 2004 prepared in accordance with the financial reporting requirements of ERISA along with the independent auditors report thereon, is provided beginning on page F-1 attached hereto.
EXHIBITS
23.1 Consent of Ernst & Young, LLP
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan Sponsor has duly caused this annual report to be signed on its behalf by the undersigned, hereunto duly authorized.
|
CIBER, Inc. Savings 401(k) Plan |
||
|
|
||
|
|
||
Dated: June 28, 2005 |
By: |
/s/ Mac J. Slingerlend |
|
|
Mac J. Slingerlend |
||
|
Chief Executive Officer, |
||
|
President and Secretary |