ACXIOM : Form 11-K

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

 

(Mark One)

 

x

Annual Report pursuant to Section 15(d) of the Securities Exchange Act of 1934

 

For the fiscal year ended December 31, 2005.

 

OR

 

o

Transition Report pursuant to Section 15(d) of the Securities Exchange Act of 1934

 

 

For the transition period from _______________ to _______________

 

Commission File Number 0-16163

 

 

A.

Full title of the plan and the address of the plan, if different from that of the issuer named

 

below:

 

Acxiom Corporation

Retirement Savings Plan

 

 

B.

Name of issuer of the securities held pursuant to the plan and the address of its principal

 

executive office:

 

Acxiom Corporation

1 Information Way

Little Rock, AR 72202

 



 

 

 

 

 

 

 

 

ACXIOM CORPORATION

RETIREMENT SAVINGS PLAN

 

Financial Statements and Supplemental Schedule

 

December 31, 2005 and 2004

 

(With Report of Independent Registered Public Accounting Firm Thereon)

 



 

 

ACXIOM CORPORATION

RETIREMENT SAVINGS PLAN

 

Table of Contents

 

 

Page

 

 

 

Report of Independent Registered Public Accounting Firm

 

1

 

 

 

Statements of Net Assets Available for Benefits

 

 

 

December 31, 2005 and 2004

2

 

 

 

Statement of Changes in Net Assets Available for Benefits

 

 

 

Year ended December 31, 2005

3

 

 

 

Notes to Financial Statements

 

4

 

 

 

Schedule

 

 

 

 

 

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

 

 

 

December 31, 2005

9

 

 

 

Signatures page

 

10

 

 

 

Exhibit Index

 

11

 

 

 

Exhibit 23.1

 

12

 

All other schedules required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 are omitted as they are inapplicable or not required.

 



 

 

Report of Independent Registered Public Accounting Firm

 

The Plan Administrator

Acxiom Corporation Retirement Savings Plan:

 

We have audited the accompanying statements of net assets available for benefits of the Acxiom Corporation Retirement Savings Plan (the Plan) as of December 31, 2005 and 2004, and the related statement of changes in net assets available for benefits for the year ended December 31, 2005. 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 Acxiom Corporation Retirement Savings Plan as of December 31, 2005 and 2004, and the changes in net assets available for benefits for the year ended December 31, 2005, in conformity with U.S. generally accepted accounting principles.

 

Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets (held at end of year) as of December 31, 2005 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. This supplemental schedule is the responsibility of the Plan’s management. 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/ KPMG LLP

 

Dallas, Texas

June 23, 2006

 



 

 

ACXIOM CORPORATION

RETIREMENT SAVINGS PLAN

 

Statement of Changes in Net Assets Available for Benefits

 

December 31, 2005 and 2004

 

 

 

 

 

 

 

 

 

 

2005

 

2004

Assets:

 

 

 

 

 

 

 

 

 

Cash

 

 

 

$

35,532   

 

—    

 

Investments, at fair value:

 

 

 

 

 

 

Acxiom Corporation common stock

 

72,852,982   

 

85,390,879   

 

 

Participant brokerage accounts

 

1,167,548   

 

866,875   

 

 

Mutual funds

 

166,112,187   

 

137,945,888   

 

 

Common collective trust funds

 

24,636,031   

 

20,960,329   

 

 

Participant notes receivable

 

5,555,017   

 

4,688,578   

 

 

 

Total investments

 

270,323,765   

 

249,852,549   

 

 

 

Net assets available for benefits

$

270,359,297   

 

249,852,549   

 

 

 

 

 

See accompanying notes to financial statements.

 

 

 

2

 



 

 

ACXIOM CORPORATION

RETIREMENT SAVINGS PLAN

 

Statement of Changes in Net Assets Available for Benefits

 

December 31, 2005 and 2004

 

Additions to net assets attributed to:

 

 

 

Investment income (loss):

 

 

 

 

Dividends

 

$

7,863,494   

 

 

Interest

 

 

351,913   

 

 

Accrued interest on deemed distributed loans

 

1,489   

 

 

Net depreciation in fair value of investments

 

(3,780,461)   

 

 

 

 

 

 

4,436,435   

 

Contributions:

 

 

 

 

Participants

 

19,755,212   

 

 

Employer, net of $1,040,547 of forfeitures

 

5,542,414   

 

 

Net assets transferred from other plans

 

6,631,913   

 

 

 

 

 

 

31,929,539   

 

 

 

Total additions

 

36,365,974   

Deductions from net assets attributed to:

 

 

 

Plan expenses

 

(24,216)   

 

Benefits paid to participants and beneficiaries

 

(15,835,010)   

 

 

 

Total deductions

 

(15,859,226)   

 

 

 

Net increase in net assets available for benefits

 

20,506,748   

Net assets available for benefits, beginning of year

 

249,852,549   

Net assets available for benefits, end of year

 

$

270,359,297   

See accompanying notes to financial statements.

 

 

 

 

 

 

3

 



 

 

ACXIOM CORPORATION

RETIREMENT SAVINGS PLAN

 

Notes to Financial Statements

 

December 31, 2005 and 2004

 

(1)

Plan Description

The following description of the Acxiom Corporation Retirement Savings Plan (the Plan) provides only general information. Participants should refer to the Plan agreement (the Agreement) for a more complete description of the Plan’s provisions.

 

(a)

General

The Plan is a defined contribution Plan covering substantially all employees of Acxiom Corporation and its domestic subsidiaries (Acxiom, the Company, or the Employer). The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA), as amended.

 

(b)

Contributions

The Plan includes a 401(k) provision whereby each non-highly compensated participant may defer up to 30% of annual compensation not to exceed limits determined under Section 415(c) of the Internal Revenue Code (IRC). Deferrals for highly compensated participants are limited to meet nondiscrimination requirements of the IRC and are currently limited to 6% of annual compensation.

Effective March 1, 2004, the Plan provides a discretionary matching contribution of 50% of deferrals for deferrals up to 6% (maximum matching contribution of 3%). Prior to March 1, 2004, the discretionary matching contribution was 25% for deferrals up to 6% (maximum matching contribution of 1.5%).

Participant contributions to the Plan are invested as directed by participants into various investment options. The Company’s matching contributions are made with Acxiom common stock and are recorded based on the fair value of the common stock at the date contributed. During the years ended December 31, 2005 and 2004 the Company contributed 319,302 and 228,488 shares, respectively, of Acxiom common stock. Immediately upon deposit into the Plan, the match shares are 100% diversifiable, at the election of the participant, among the other investment options with the Plan.

 

(c)

Participant Accounts

Each participant’s account is credited with the participant’s contribution, the Company’s matching contribution, and discretionary contributions, if any, and is adjusted for investment income/losses. Allocations of income/losses are made according to formulas specified in the Agreement based on participant compensation or account balances. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.

 

 

 

4

(Continued)

 

 



 

ACXIOM CORPORATION

RETIREMENT SAVINGS PLAN

 

Notes to Financial Statements

 

December 31, 2005 and 2004

 

 

(d)

Participant Notes Receivable

 

Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their vested account balance. Loans are repayable through payroll deductions ranging up to five years unless the loan is for the purchase of a primary residence, in which case the loan can be repaid over ten years. The loans are secured by the balance in the participant’s account and bear interest at the prime rate in effect at the date of the loan plus 2%. The interest rates on outstanding participant loans at December 31, 2005 and 2004 range from 6% to 11.5%, with maturity dates ranging to September 2015.

 

 

(e)

Vesting

 

Participants are immediately vested in their voluntary contributions and the earnings thereon. Participants are vested in the remainder of their accounts based on years of service, whereby partial vesting occurs in 20% increments beginning after two years of service until participants become fully vested after six years of service. If applicable, nonvested portions of Company contributions are forfeited as of an employee’s termination date and are used to reduce future Company matching contributions or to pay Plan expenses.

 

At December 31, 2005 and 2004, forfeited nonvested accounts totaled $34,974 and $854,378, respectively. These accounts will be used to reduce future Employer contributions. During 2005 $360,117 of participants’ accounts were forfeited and Employer contributions were reduced by $1,040,547 from forfeited nonvested accounts. During 2005 the forfeiture account balance was decreased by $104,429 on the fair market value of the investments held in the account.

 

 

(f)

Investment Options

 

Upon enrollment in the Plan, a participant may direct employee contributions in any of 21 mutual funds and two common collective trust funds currently offered by T. Rowe Price Investment Services, Inc. (T. Rowe Price) (note 4) or the Acxiom common stock fund. In addition, participants have the option to open a self-directed brokerage account with T. Rowe Price in order to invest in numerous other stocks, bonds, and mutual funds.

 

The Plan’s investment in the T. Rowe Price Stable Value Fund (the Fund), a common trust fund, holds substantial investments in guaranteed investment contracts, bank investment contracts, and synthetic investment contracts. The value of the Fund reflects the value of the underlying contracts, which consist of changes in principal value, reinvested dividends and capital gains distributions, and approximate fair market value. The stated interest rates of the contracts vary and the average yield for the year ended December 31, 2005 was 4.4% after expenses.

 

The Plan’s investment in the T. Rowe Price Equity Index Trust (the Trust), a common trust fund, holds substantial investments in common stocks of companies that comprise the S&P Index. The returns from the investments vary and the average yield for the year ended December 31, 2005 was 5.01% after expenses.

 

 

 

5

(Continued)

 



 

 

ACXIOM CORPORATION

RETIREMENT SAVINGS PLAN

 

Notes to Financial Statements

 

December 31, 2005 and 2004

 

 

(g)

Benefits Paid to Participants and Beneficiaries

 

Benefits paid upon retirement, death, or disability are made in the form of a lump-sum payment of cash or common stock of the Company. If a participant receives benefits prior to retirement, death, or disability, the benefits paid from the participant’s Employer contribution account shall not exceed the participant’s vested balance therein.

 

 

(h)

Net Assets Transferred from Other Plans

 

On April 1, 2005 and October 3, 2005, the account balances of all participants in the SmartDM Admin Staff 401(k) Plan totaling $449,785 and Digital Impact Inc. plan totaling $6,162,821 were transferred to the Plan, respectively.

 

(2)

Summary of Significant Accounting Policies

 

 

(a)

Basis of Accounting

 

The financial statements of the Plan are prepared under the accrual method of accounting.

 

 

(b)

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 of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of additions to and deductions from net assets during the reporting period. Actual results could differ from those estimates.

 

 

(c)

Investment Valuation and Income Recognition

 

The Plan’s investments in mutual funds, Acxiom Corporation common stock, and participant brokerage accounts are stated at fair value, based upon quoted market prices, except for participant notes receivable, which are stated at unpaid principal balance, which approximates fair value. Purchases and sales of securities and related income are recorded on a trade date basis. Investments in common collective trust are valued based on their net asset value as determined by the Trustee, based on the fair value of the underlying assets.

 

The Plan provides for investment in investment securities that, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits.

 

 

(d)

Payment of Benefits

 

Benefits are recorded when paid.

 

 

 

6

(Continued)

 



 

 

ACXIOM CORPORATION

RETIREMENT SAVINGS PLAN

 

Notes to Financial Statements

 

December 31, 2005 and 2004

 

 

(3)

Investments

 

 

 

 

 

 

 

 

 

2005

 

2004

 

 

 

 

 

 

 

 

Number of

 

 

 

Number of

 

 

 

 

 

 

 

 

 

 

shares or

 

 

 

shares or

 

 

 

 

 

 

 

 

 

 

units

 

Fair value

 

units

 

Fair value

**

Acxiom common stock

 

3,167,521   

$

72,852,982*

 

3,246,801   

$

85,390,879*

Participant brokerage accounts

 

1,167,548   

 

1,167,548   

 

866,875   

 

866,875   

Mutual funds:

 

 

 

 

 

 

 

 

 

**

T. Rowe Price Equity Income

 

 

 

 

 

 

 

 

 

Fund

 

 

 

930,976   

 

24,130,899*

 

884,421   

 

23,516,751*

**

T. Rowe Price Balanced Fund

1,022,282   

 

20,210,522*

 

969,011   

 

19,089,526*

**

T. Rowe Price Growth Stock

 

 

 

 

 

 

 

 

 

 

Fund

 

 

 

780,187   

 

22,157,309*

 

777,127   

 

20,725,990*

**

T. Rowe Price Small-Cap

 

 

 

 

 

 

 

 

 

 

Value Fund

 

515,134   

 

19,013,583*

 

453,771   

 

16,190,559*

**

T. Rowe Price Mid-Cap

 

 

 

 

 

 

 

 

 

 

Growth Fund

 

469,709   

 

25,430,028*

 

391,127   

 

19,509,410*

**

Other funds

 

 

 

 

55,169,846   

 

 

 

38,913,652   

 

 

 

 

 

Total mutual funds

 

 

 

166,112,187 

 

 

 

137,945,888   

Common collective trust funds:

 

 

 

 

 

 

 

 

**

T. Rowe Price Stable Value

 

 

 

 

 

 

 

 

 

 

Fund

 

 

 

17,813,028 

 

17,813,028*

 

16,274,040   

 

16,274,040*

**

T. Rowe Price Equity

 

 

 

 

 

 

 

 

 

 

Index Trust

 

190,533   

 

6,823,003   

 

137,146   

 

4,686,289   

 

 

 

 

 

Total common

 

 

 

 

 

 

 

 

 

 

 

 

 

 

collective trust funds

 

24,636,031  

 

 

 

20,960,329   

**

Participant notes receivable

 

 

 

 

 

 

 

 

 

(6.0% – 11.5%)

 

 

 

5,555,017   

 

 

 

4,688,578   

 

 

 

 

 

Total investments

 

 

$

270,323,765   

 

 

$

249,852,549   

* Represents 5% or more of net assets available for benefits.

 

 

 

 

** All T. Rowe Price Funds are a party in interest. Other Funds consist of various investments

 

including T. Rowe Price Funds in the amount of $35,655,685 for 2005 and $27,400,367 for 2004.

 

Acxiom common stock and participant notes receivable are also related party transactions.

 

 

 

7

(Continued)

 



 

 

ACXIOM CORPORATION

RETIREMENT SAVINGS PLAN

 

Notes to Financial Statements

 

December 31, 2005 and 2004

 

During 2005, the Plan’s investments (including investments bought, sold, and held during the year) appreciated/depreciated in value as follows:

 

Acxiom common stock

$

(10,565,457)   

Common collective trust

 

314,301   

Mutual funds

 

6,470,695   

 

$

(3,780,461)   

 

(4)

Plan Administration

The Plan is administered by the Company. T. Rowe Price Trust Company (T. Rowe Price) is the recordkeeper and trustee of the Plan.

Certain fees for attorneys, accountants, and Plan administration have been paid by the Company during the year ended December 31, 2005. The Company may continue to pay these fees in the future, if it so chooses; otherwise, fees will be paid out of the trust of the Plan.

(5)

Tax Status

The Internal Revenue Service has determined and informed the Company in a letter dated July 21, 2003 that the Plan is designed in accordance with applicable sections of the IRC. The Plan has been amended since receiving the determination letter. The Plan Administrator believes that the Plan is currently designed and being operated in compliance with the applicable requirements of the IRC.

(6)

Related Party Transactions

Certain investments represent mutual funds managed by T. Rowe Price, the trustee. In addition, cash of $35,532 at December 31, 2005, is with T. Rowe Price. Accordingly, these transactions qualify as related party transactions. During 2005 and 2004, total fees paid to T. Rowe Price were $20,888 and $19,569, respectively. Other related party transactions involve the common stock of the Company and participant notes receivable.

(7)

Plan Termination

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. Upon complete discontinuance of contributions, termination, or partial termination of the Plan, participants will become 100% vested in their accounts, in which event the value of such accounts shall be distributed as provided in the Plan.

 

 

 

8

 



 

 

ACXIOM CORPORATION

RETIREMENT SAVINGS PLAN

 

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

 

December 31, 2005

 

Identity of issuer, borrower,

 

 

 

 

 

 

 

 

 

 

Current

lessor, or similar party

 

Description

 

Shares

 

Cost

 

value

*

Acxiom Corporation

 

Common stock

 

3,167,521 

$

**

 

72,852,982

 

Participant Brokerage Accounts

Tradelink Investments

 

1,167,548 

 

**

 

1,167,548

*

T. Rowe Price

 

 

Mutual funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PIMCO Total Return Admin.

 

120,290 

 

**

 

1,263,049

 

 

 

 

 

 

 

 

 

American Growth Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

of America

 

147,150 

 

**

 

4,541,061

 

 

 

 

 

 

 

 

 

Retirement Income Fund

 

6,637 

 

**

 

82,702

 

 

 

 

 

 

 

 

 

Retirement 2005 Fund

 

17,003 

 

**

 

184,827

 

 

 

 

 

 

 

 

 

Retirement 2010 Fund

 

42,498 

 

**

 

619,200

 

 

 

 

 

 

 

 

 

Retirement 2015 Fund

 

114,441 

 

**

 

1,284,024

 

 

 

 

 

 

 

 

 

Retirement 2020 Fund

 

87,064 

 

**

 

1,360,803

 

 

 

 

 

 

 

 

 

Retirement 2025 Fund

 

114,018 

 

**

 

1,307,788

 

 

 

 

 

 

 

 

 

Retirement 2030 Fund

 

106,833 

 

**

 

1,761,670

 

 

 

 

 

 

 

 

 

Retirement 2035 Fund

 

93,398 

 

**

 

1,120,143

 

 

 

 

 

 

 

 

 

Retirement 2040 Fund

 

80,985 

 

**

 

1,341,929

 

 

 

 

 

 

 

 

 

American Funds Europacific

 

256,571 

 

**

 

10,545,064

 

 

 

 

 

 

 

 

 

 

Growth

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

J P Morgan Mid-Cap Value, A

 

135,953 

 

**

 

3,164,988

 

 

 

 

 

 

 

 

 

Growth Stock Fund

 

780,187 

 

**

 

22,157,309

 

 

 

 

 

 

 

 

 

New Horizons Fund

 

362,560 

 

**

 

11,507,655

 

 

 

 

 

 

 

 

 

Small-Cap Value Fund

 

515,134 

 

**

 

19,013,583

 

 

 

 

 

 

 

 

 

Mid-Cap Growth Fund

 

469,709 

 

**

 

25,430,028

 

 

 

 

 

 

 

 

 

Balanced Fund

 

1,022,282 

 

**

 

20,210,522

 

 

 

 

 

 

 

 

 

Equity Income Fund

 

930,976 

 

**

 

24,130,899

 

 

 

 

 

 

 

 

 

Spectrum Income Fund

 

632,117 

 

**

 

7,452,663

 

 

 

 

 

 

 

 

 

Spectrum Growth Fund

 

418,896 

 

**

 

7,632,280

 

 

 

 

 

 

 

 

 

 

 

Total mutual funds

 

 

 

 

 

166,112,187

 

 

 

 

 

 

 

 

Common collective trust funds:

 

 

 

 

 

 

*

T. Rowe Price

 

 

 

Stable Value Fund

 

17,813,028

 

**

 

17,813,028

*

T. Rowe Price

 

 

 

Equity Index Trust

 

6,823,003

 

**

 

6,823,003

 

 

 

 

 

 

 

 

 

 

 

Total common collective trust funds

 

 

 

24,636,031

*

Participant notes receivable, interest rates range from 6.0% – 11.5%

 

 

 

 

 

 

 

 

and maturities of January 2006 to September 2015

 

 

 

 

 

5,555,017

 

 

 

 

 

 

 

 

 

 

 

Total investments

 

 

 

 

$

270,323,765

*

Indicates a party in interest to the Plan.

 

 

 

 

 

 

 

 

**

Not applicable – cost is omitted as investments are participant directed.

 

 

 

 

 

 

See accompanying independent registered public accounting firm report.

 

 

 

 

 

 

 

 

 

9

 



 

 

Signatures

 

Pursuant to the requirements of the Securities Exchange Act of 1934, Acxiom Corporation has duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized.

 

Acxiom Corporation

As Sponsor and Administrator of the

Acxiom Corporation Retirement Savings Plan

 

Date: June 29, 2006

By: /s/ Rodger S. Kline                                  

Rodger S. Kline

Chief Financial and Administration Leader

 

 

 

10

 



 

 

Exhibit Index

Exhibit 23.1

Consent of KPMG LLP

 

 

11