EXHIBIT 99 (a)

 

 

 

FORM 11-K INFORMATIONFOR THE

 

ALLTEL CORPORATION401(k) PLAN

 

AS OF DECEMBER 31, 2001AND 2000

 

AND FOR THE YEAR ENDEDDECEMBER 31, 2001

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REQUIRED INFORMATION

 

 

The ALLTELCorporation 401(k) Plan (the "Plan") is subject to the EmployeeRetirement Income Security Act of 1974.

Item 4. In lieuof the requirements of Items 1, 2 and 3 of Form 11-K, the following financialstatements of the Plan are being filed as Exhibit 99(a) to this Report:

> 
1.     Report of Independent Public  Accountants

2.     Statements of Net Assets Available  for Benefits as of December 31, 2001 and 2000

3.      Statement of Changes in Net Assets Available for Benefits for the year ended

         December 31, 2001

 

4.      Notes to Financial Statements and Supplemental Schedule as of December 31,

         2001 and 2000

5.     Schedule of Assets Held for  Investment Purposes as of December 31, 2001

The Consent of Independent PublicAccountants to the inclusion of the foregoing financial statements herein isbeing filed as Exhibit 23(a) to this Report.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**ALLTEL CORPORATION 401(k) PLAN**

**FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE**

**As of December 31, 2001 and 2000**

**TOGETHER WITH AUDITORS' REPORT**

 

 

**ALLTEL CORPORATION 401(k) PLAN**

**INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE**

**As of December 31, 2001 and 2000**

| **Report of Independent Public Accountants**                                                                                                 | 1      |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **Financial Statements:**                                                                                                                    |   |
|      Statements of Net Assets Available for Benefits                                                                | 2      |
|      Statement of Changes in Net Assets Available for Benefits                                                      | 3      |
| **Notes to Financial Statements and Supplemental Schedule**                                                                                  | 4-10   |
| **Supplemental Schedule:**                                                                                                                   |   |
|      Schedule I: Schedule H, Line 4i - Schedule of Assets Held for Investment      Purposes as of December 31, 2001 | 11     |

**REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS**

To the Administrator of the 

ALLTEL Corporation 401(k) Plan: 

We have audited the accompanying statements of net assets available for benefits  of the ALLTEL Corporation 401(k) Plan (the "Plan", formerly the ALLTEL Corporation  Thrift Plan) as of December 31, 2001 and 2000, and the related statement of  changes in net assets available for benefits for the year ended December 31,  2001. These financial statements and the schedule referred to below are the  responsibility of ALLTEL Corporation in its capacity as administrator of the  Plan (the "Administrator"). Our responsibility is to express an opinion on these  financial statements and the schedule based on our audits. 

We conducted our audits in accordance with auditing standards generally accepted  in the United States. Those standards require that we plan and perform the audit  to obtain reasonable assurance about whether the financial statements are free  of material misstatement. An audit includes examining, on a test basis, evidence  supporting the amounts and disclosures in the financial statements. An audit  also includes assessing the accounting principles used and significant estimates  made by the Administrator, 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  as of December 31, 2001 and 2000, and the changes in net assets available for  benefits for the year ended December 31, 2001, in conformity with accounting  principles generally accepted in the United States. 

Our audits were performed for the purpose of forming an opinion on the basic  financial statements taken as a whole. The Schedule of Assets Held for Investment  Purposes is presented for purposes of additional analysis and is not a required  part of the basic 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. The supplemental  schedule has been subjected to the auditing procedures applied in the audits  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.

/s/ ARTHUR ANDERSEN  LLP

Little Rock, Arkansas,April 24, 2002. 

**ALLTEL CORPORATION 401(k) PLAN**

**STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS**

**As of December 31,**

| ASSETS: | 2001
2000 Investments, at fair value (Schedule I and Note 3     ALLTEL Corporation common stock$ 115,623,068$ 108,050,716     Mutual investment funds349,846,261331,129,899     Money market funds61,681,32349,929,490     Participant loans
13,407,355
10,584,153          Total investments
540,558,007
499,694,258 Receivables:     Employer's contribution16,746,61815,450,821     Accrued interest and dividends642,792579,970     Due from broker
-
238,672          Total receivables
17,389,410
16,269,463      Total assets557,947,417515,963,721 LIABILITIES     Due to broker
131,775
-NET ASSETS AVAILABLE FOR BENEFITS
$ 557,815,642
$ 515,963,721
The accompanying notes are an integral part of these statements.

**2**

**ALLTEL CORPORATION 401(k) PLAN**

**STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS**

**For the year ended December 31, 2001**
ADDITIONS:     Investment income (loss):          Dividend income$ 6,287,790          Interest income3,268,655          Net depreciation      in fair value of investments (Note 3)
(36,138,969)               Total      investment loss
(26,582,524)      Contributions:          Employer16,746,618          Employee50,949,097          Employee rollovers
2,017,882               Total      contributions
69,713,597      Transfers from other plans (Note 1)
46,150,336                Total      additions
89,281,409 DEDUCTIONS:     Benefit payments and withdrawals
47,429,488                Total      deductions
47,429,488                Net      increase41,851,921 NET ASSETS AVAILABLE FOR BENEFITS:           Beginning      of year
515,963,721           End of year
$ 557,815,642
 The accompanying notes are an integral part of this statement.

**3**

**ALLTEL CORPORATION 401(k) PLAN**

**NOTES TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE**

**DECEMBER 31, 2001 AND 2000**

**1. PLAN MERGERS**

Effective March 8, 2001, the Advanced Information Resources, Ltd. 401(k) Savings  Plan (the "AIR Plan") was merged with and into the ALLTEL Corporation 401(k)  Plan (the "Plan", formerly the ALLTEL Corporation Thrift Plan). As a result  of this merger, assets from the AIR Plan in the amount of $2,487,182 were transferred  to the Plan as of the effective date. In addition, effective December 31, 2001,  the Aliant Communications Inc. 401(k) Savings and Stock Ownership Plan (the  "Aliant Plan") was merged with and into the Plan. As a result of this merger,  assets from the Aliant Plan in the amount of $43,663,154 were transferred into  the Plan at December 31, 2001, and accordingly, are reflected in the accompanying  financial statements. Effective as of the merger dates, the general provisions  of the Plan will govern with respect to the interests of the participants of  the merged plans, to the extent not inconsistent with any provision of the merged  plans that may not be eliminated under Section 411(d)(6) of the Internal Revenue  Code (the "Code"). 

**2. PLAN DESCRIPTION**

The plan document was amended and restated effective January 1, 2001. The following  is a brief description of the Plan and the administration thereof and is provided  for general information purposes only. Participants should refer to the plan  document or the summary plan description for a more complete description of  the Plan's provisions. 

**General**

The Plan is a defined contribution employee benefit plan designed to assist  employees in planning for retirement. The Plan covers substantially all non-bargaining  employees of ALLTEL Corporation and its subsidiaries ("ALLTEL" or the "Company").  Employees who are (1) covered by a collective bargaining agreement, subject  to certain limitations, (2) leased by the Company or (3) nonresident aliens  with no U.S. income are not eligible to participate in the Plan. 

**Administration**

The Plan is administered by ALLTEL (the "Administrator"). The trustee of the  Plan is JP Morgan Chase Bank ("Chase" or the "Trustee"). Howard Johnson & Company,  a subsidiary of Merrill Lynch & Company, Inc., is the record keeper for the  Plan. 

**Plan Contributions**

Each year, participants may contribute up to 14 percent of their pretax annual  compensation, as defined in the Plan document. Participant contributions are  subject to certain dollar limitations established by the Internal Revenue Service  (the "IRS"), which was $10,500 in 2001. Employees considered "highly compensated",  as defined in the Plan document, are currently limited to contributing up to  7 percent of their pretax annual compensation. Following the end of the Plan  year, the Company will contribute in cash 1 percent of eligible Plan compensation  to the account of every eligible participant. A participant will receive this  non-elective employer contribution regardless of whether the participant has  elected to defer any of his/her own compensation to the Plan. To qualify for  the non-elective employer contribution, a participant must: 

**4**

**ALLTEL CORPORATION 401(k) PLAN**

**NOTES TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE,  Continued**

**____**

(1) have worked at least 1,000 hours during the year for which the contribution  is being made, (2) have completed one year of service (12 consecutive months  during which at least 1,000 hours are worked) and (3) be employed by the Company  on the last business day of the year. The non-elective employer contribution  will also be made to the account of a participant who dies, becomes disabled  or qualifies for normal or early retirement during the year. 

In addition to the 1 percent non-elective employer contribution, employees  of ALLTEL Information Services, Inc. ("AIS"), a wholly owned subsidiary of ALLTEL  and its subsidiaries may receive a matching employer contribution. The amount  of the match is determined each year by the Company. In 2001, the Company provided  a basic employer matching contribution equal to 25 percent of the first 6 percent  of eligible compensation that a participant contributed to the Plan, plus an  additional matching contribution of 12 percent on salary deferrals greater than  3 percent but less than 6 percent of eligible plan compensation. All employer  contributions are funded annually in cash following the Plan's year-end. 

The employer contribution is invested according to a participant's investment  election. If no investment election has been made, the participant's portion  of the employer contribution is invested in a short-term money market fund.  The Plan as amended and restated allows for any eligible employee who was a  participant in a plan qualified under Section 401 of the Code and who receives  a cash distribution from such plan to make a rollover contribution to the Plan.  Such rollover contributions are permitted provided the employee is entitled  under Section 402 (c)(1) or Section 408 (d)(3)(A) of the Code to rollover a  distribution to another qualified retirement plan. 

**Participant Accounts**

Individual accounts are maintained for each of the Plan's participants to reflect  the participant's contributions and related employer non-elective and matching  contributions, if applicable, as well as the participant's share of the Plan's  earnings and any related administrative expenses. Allocations of the Plan's  earnings and administrative expenses, if applicable, are completed quarterlyand are based upon participant  earnings or account balances. The benefit to which a participant is entitled  is the benefit that can be provided from the participant's vested account. 

**Vesting and Benefits**

Participants immediately become fully vested in their employee contributions,  non-elective and matching employer contributions and the accumulated earnings  thereon. Participants may elect upon termination of employment to defer payment  of their account balance if it exceeds $5,000. The Plan's obligation for the  undistributed net assets of former employees approximated $107,634,000 and $79,216,000  as of December 31, 2001 and 2000, respectively. As of December 31, 2001 and  2000, the Plan had 21,834 and 21,398 participants with account balances, respectively.

**5**

**ALLTEL CORPORATION 401(k) PLAN**

**NOTES TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE,  Continued**

**____**

**Benefit Payments**

Participants or their beneficiaries, as applicable, are entitled to receive  the balance of their Plan account when they retire at age 65 or later, if they  become permanently disabled, upon death or upon separation from service with  the Company. The Plan permits early retirement between ages 55 and 65 provided  that required service levels have been met. If a participant's account balance  exceeds $5,000, participants may elect to receive the distributions in a lump-sum  payment, in installment payments, subject to certain limitations, or a combination  of both. If a participant's account balance is equal to or less than $5,000,  the account will be distributed in a lump-sum payment. Additionally, participants  may withdraw funds from their Plan account, with the approval of the Administrator,  for "hardship" reasons as defined by the IRS. 

**Plan Termination**

While it has not expressed any intention to do so, the Administrator has the  right to terminate the Plan. In the event that the Plan is terminated, each  participant shall be entitled to receive the entire amount of his/her account  balance in cash or in assets of the Plan as the Trustee shall determine. Participants  in the Plan are entitled to certain rights and protection under the Employee  Retirement Income Security Act of 1974 ("ERISA"). 

**3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Financial Statement Presentation**

The accompanying financial statements have been prepared on the accrual basis  of accounting. The financial statements and supplementary schedule have been  prepared to satisfy the reporting and disclosure requirements of ERISA. The  preparation of financial statements in conformity with accounting principles  generally accepted in the United States requires the Administrator to make estimates  and assumptions that affect the amount of assets, liabilities, income and expenses,  and disclosures of certain contingent assets and liabilities at the dates of  the financial statements. The estimates and assumptions used in the accompanying  financial statements are based upon the Administrator's evaluation of the relevant  facts and circumstances as of the dates of the financial statements. Actual  results may differ from the estimates and assumptions used in preparing the  accompanying financial statements and such differences could be material.

**Investments**

During 2001, participants directed their contributions among the following  investment options and were allowed to change their investment elections subject  to certain restrictions imposed by the funds and the Plan. Among the Plan's  investment options are investment funds managed by Barclays Global Investors,  N.A. ("BGI"), Fidelity Investments ("Fidelity"), T. Rowe Price Investments ("T.  Rowe Price"), AIM Equity Funds, Inc. ("AIM"), and Vanguard Investments ("Vanguard").  Set forth below is a brief description of each investment option available to  plan participants during 2001. 

**6**

**ALLTEL CORPORATION 401(k) PLAN**

**NOTES TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE,  Continued**

**____**

A brief description of the ten investment funds managed by BGI is as follows:

Daily EAFE Equity Index Fund - This fund seeks long-term capital appreciation  through investment in substantially the same common stocks that comprise the  Morgan Stanley Capital International Europe, Australia and Far East "Free" Index  (the "EAFE Index"), an index designed to measure the aggregate performance of  the stock markets of Europe, Australia, New Zealand and the Far East. 

Daily Equity Index Fund - This fund seeks long-term capital appreciation  through investment in substantially the same common stocks that comprise the  Standard & Poor's 500 Composite Stock Price Index (the "S&P 500 Index"), an  index designed to measure the aggregate performance of the U.S. market for stocks  of large capitalization. 

1-3 Year Government Bond Index Fund - This fund invests in obligations  issued or guaranteed by the U.S. Government or its agencies that have maturities  ranging from one to three years. This fund attempts to duplicate the total return  of the Lehman Brothers Aggregate 1-3 Year Government Bond Index, an index designed  to measure the aggregate performance of U.S. Government-issued bonds with maturities  greater than one year but less than three years. During 2001, this fund was  merged into the U.S. Debt Index Fund. 

U.S. Debt Index Fund - This fund seeks long-term capital appreciation  through investment in obligations issued or guaranteed by the U.S. Government  or its agencies, including mortgage-backed securities and investment grade obligations  issued by domestic and certain foreign corporations with a remaining maturity  exceeding one year. This fund attempts to duplicate the total return of the  Lehman Brothers Aggregate Bond Index, an index designed to measure the aggregate  performance of the U.S. market for investment-grade debt securities. 

Money Market Fund - This fund seeks maximum current income while preserving  capital through investment in money market instruments including U.S. Government  and agency obligations, bank obligations including certificates of deposit,  bankers' acceptances and time deposits, and short-term commercial debt instruments  such as commercial paper, unsecured loan participations or variable rate demand  notes and repurchase agreements. 

LifePath Funds - These funds consist of the LifePath Income Fund, LifePath  2010 Fund, LifePath 2020 Fund, LifePath 2030 Fund and the LifePath 2040 Fund.  Each fund contains a target investment date and seeks to provide a balance of  short-term stability and long-term appreciation most appropriate for its target  investment date. Each fund invests in various classes of domestic and foreign  equity and debt securities and money market instruments. Generally, the funds  with longer time horizons invest more heavily in equity securities, while funds  with shorter time horizons invest in debt securities and money market instruments.  When the LifePath Fund reaches its target investment date, it mergers with the  LifePath Income Fund. 

**7**

**ALLTEL CORPORATION 401(k) PLAN**

**NOTES TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE,  Continued**

**____**

Following is a brief description of the three investment funds managed by Fidelity:

Equity Growth Fund - This fund seeks growth by investing primarily in  stocks having potential for long-term capital appreciation. 

Equity-Income Fund - This fund seeks reasonable income by investing  in income-producing equity securities. The fund invests in common and preferred  stocks and debt securities whose yields exceed the composite yield of the S&P  500 Index, have rising or above-average dividends or have potential for future  dividend growth. 

Magellan Fund - This fund seeks long-term capital appreciation through  investment in common stocks and convertible securities of domestic, foreign  and multinational companies. 

A brief description of the two investment funds managed by T. Rowe Price is  as follows: 

International Stock Fund - This fund seeks long-term capital appreciation  through investment in stocks of companies operating outside of the United States.

Small Cap Fund - This fund seeks long-term capital appreciation through  investment in a diversified group of stocks of small size companies that offer  growth and value potential. 

A brief description of the other investment options available to plan participants  is as follows: 

ALLTEL Corporation Common Stock Fund - Contributions to this fund are  primarily used to purchase shares of ALLTEL common stock in the open market.  This fund also holds a portion of its invested funds in a short-term money market  fund or other such liquid investments as determined by the Trustee. 

AIM Constellation Fund - This fund seeks capital appreciation by investing  in small to medium size emerging growth companies. 

Vanguard Explorer Fund - This fund seeks long-term capital appreciation  through investment in diversified group of small company stocks that offer above-average  growth potential. 

Any excess cash in the above investment funds is automatically invested daily  by the Trustee into the JP Morgan Chase Cash Reserve Money Market Fund, a short-term  investment fund. Assets of this money market fund consist mainly of corporate  demand notes, commercial paper and short-term U.S. Government securities. The  carrying value approximates fair value due to the short-term maturity of these  investments.

 Investments are stated at their fair value as determined by the Trustee. Securities  traded on a national exchange are valued at their quoted market price on the  last business day of the year. Shares of mutual funds are valued at the net  asset value of shares held by the Plan at year-end. Purchases and sales of securities  are recorded on a trade-date basis. Interest income is recorded as earned on  the accrual basis. Dividends are recorded on the ex-dividend date. 

8 

**ALLTEL CORPORATION 401(k) PLAN**

**NOTES TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE,  Continued**

**____**

Investment securities, in general, are exposed to various risks, such as interest  rate, credit and overall market volatility risks. Due to the level of risk associated  with certain investment securities, it is reasonably possible that changes in  the values of investment securities 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. 

The following investments represent 5 percent or more of the Plan's net assets  as of December 31: 
 
2001
2000ALLTEL Corporation Common Stock,     1,873,045 and 1,730,542 shares, respectively$115,623,068$108,050,716 Fidelity Magellan Fund,     1,235,092 and 1,221,900 shares, respectively128,721,332145,772,616 Fidelity Equity-Income Fund,     1,463,622 and 1,162,865 shares, respectively71,380,83862,131,884 BGI Money Market Fund,     60,382,933 and 49,386,686 shares, respectively60,382,93349,386,686 BGI Daily Equity Index Fund,     2,220,963 and 2,295,785 shares, respectively41,909,57349,198,678
 During 2001, the Plan's investments (including gains and losses on investments  bought and sold, as well as held during the year) depreciated in value as follows:
ALLTEL Corporation Common Stock$ (847,167)Mutual investment funds
(35,291,802)     Total depreciation in fair value
$ (36,138,969)
ALLTEL Corporation Common Stock Mutual investment funds Total depreciation  in fair value 

**Plan Expenses**

As outlined in the Plan document, expenses related to the Plan's operations  are paid from the Plan's assets unless ALLTEL elects to pay these expenses.  ALLTEL paid all administrative expenses related to the Plan in 2001. 

**4. EMPLOYER CONTRIBUTIONS**

Contributions in the amount of $16,746,618 due to the Plan from the Company  had not been funded or allocated among the Plan's funds as of December 31, 2001.  The employer's contribution receivable was funded by the Company and allocated  among the Plan's investment funds, according to participant elections, during  April 2002. 

9 

**ALLTEL CORPORATION 401(k) PLAN**

**NOTES TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE,  Continued**

**____**

**5. PARTICIPANT LOANS**

Participants can borrow from their account balances amounts not to exceed 50  percent of their account balance, up to a maximum loan amount of $50,000. Such  loans are allowed only for specific purposes and must be repaid through payroll  deductions within five years, unless used to purchase a principal residence.  Principal and interest is paid ratably through payroll deductions over the term  of the loan. If a participant's employment terminates with an outstanding loan,  the entire loan must be repaid in full within the time prescribed by the IRS.  If the loan is not repaid on time, the unpaid portion will be considered taxable  income to the individual. Loans are secured by the balance in the participant's  account and bear interest at rates determined by the Administrator upon execution  of the loan. Interest rates on the loans outstanding at December 31, 2001 range  from 5.75 percent to 11.50 percent. 

**6. TAX STATUS**

The Plan has received a favorable determination letter from the IRS dated January  10, 1997, which states that the Plan, as restated January 1, 1994, is "qualified"  for the purposes of Section 401(a) of the Code. The Administrator is of the  opinion that the Plan, as amended and restated January 1, 2001, is designed  and operating in accordance with applicable IRS requirements, and therefore,  believes the Plan is qualified and is tax-exempt as of the financial statement  date. Employer contributions and income of the Plan are not taxable to the participants  until withdrawals or distributions are made. 

**7. RELATED PARTY TRANSACTIONS**

Certain Plan investments are shares of mutual funds managed by Chase. Since  Chase is the Plan trustee, these transactions qualify as party-in-interest transactions.  The Plan also invests in ALLTEL's common stock. These transactions also qualify  as party-in-interest transactions. 

**8. RECONCILIATION TO FORM 5500**

As of December 31, 2001 and 2000, the Plan had pending distributions to participants  who elected to withdraw from the Plan of $1,315,039 and $1,927,599, respectively.  These amounts are recorded as a liability in the Plan's Form 5500; however,  these amounts are not recorded as a liability in the accompanying statements  of net assets available for benefits in accordance with accounting principles  generally accepted in the United States. 

The following table reconciles the financial statements to the Plan's Form  5500 as filed by the Company for the year ended December 31, 2001: 
   
Net Assets Available for Benefits 
Benefits Payable
Distributions to Participants
2001
2000Per financial statements$                       -$47,429,488$557,815,642$515,963,721Accrued benefits payable1,315,0391,315,039(1,315,039)(1,927,599)Reversal of prior year     benefit payments accrual
-
(1,927,599)
-
-Per Form 5500
$ 1,315,039
$46,816,928
$556,500,603
$514,036,122 
10

**ALLTEL CORPORATION 401(k) PLAN**

**Schedule H, Line 4i - SCHEDULE OF ASSETS HELD FOR INVESTMENT  PURPOSES**

**As of December 31, 2001**
Identity of Issuer, Borrower,Number of     Lessor or Similar Party
Units/Shares
Historical Cost
Fair ValueMutual Investment Funds Managed by     Barclays Global Investors, N.A.:          Daily EAFE      Equity Index Fund810,659$ 13,239,021$ 10,416,972          Daily Equity      Index Fund2,220,96339,664,83041,909,573          U.S. Debt      Index Fund1,618,43225,134,83427,351,496          LifePath Income      Fund173,7502,422,0452,540,221          LifePath 2010      Fund407,1365,879,7316,408,326          LifePath 2020      Fund1,076,69714,001,11817,313,290          LifePath 2030      Fund579,4789,490,4809,543,998          LifePath 2040      Fund638,007
11,315,468
10,654,714 
121,147,527
126,138,590Mutual Investment Funds Managed by     Fidelity Investments:          Equity-Growth      Fund187,9349,109,8539,143,564          Equity-Income      Fund1,463,62272,394,54771,380,839          Magellan Fund1,235,092133,254,477128,721,332 
214,758,877
209,245,735Mutual Investment Funds Managed by     T. Rowe Price Investments:          International      Stock Fund233,3442,562,3462,564,449          Small Cap      Fund184,0424,320,9264,663,626 
6,883,272
7,228,075Other Mutual Investment Funds:          AIM Equity      Funds, Inc. Constellation Fund216,5014,759,1174,784,671          Vanguard Explorer      Fund43,743
2,206,609
2,449,190 6,965,7267,233,861               Total      Mutual Investment Funds
349,755,402
349,846,261 Money Market Funds:     Barclays Global Investors, N.A.          Money Market      Fund60,382,93360,382,93360,382,933*   JP Morgan Chase Cash Reserve          Money Market      Fund1,298,3901,298,3901,298,390               Total      Money Market Funds
61,681,323
61,681,323 Other Investments:*      ALLTEL Corporation Common Stock1,873,045106,351,211115,623,068*      Participant Loans with interest rates          ranging from      5.75 percent to 11.50 percent-13,407,35513,407,355               Total      Investments
$ 531,195,291
$ 540,558,007
 * Indicates a party-in-interest. 

The accompanying notes are an integral part of this schedule.

11 |
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