UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 11-K
| x | Annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934 |
For the fiscal year ended December 31, 2006
OR
| ¨ | Transition report pursuant to Section 15(d) of the Securities Exchange Act of 1934 |
For the transition period from to
Commission file number 000-10211
| A. | Full title of the plan and the address of the plan, if different from that of the issuer named below: |
Inter-Tel, Incorporated
Tax Deferred Savings Plan and Retirement Trust
1615 South 52nd Street
Tempe, AZ 85281
| B. | Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: |
Inter-Tel (Delaware), Incorporated
1615 South 52nd Street
Tempe, AZ 85281
TAX DEFERRED SAVINGS PLAN AND RETIREMENT TRUST
Financial Statements and Supplemental Schedule
December 31, 2006 and 2005
Table of Contents
| Pages | ||
| 1 | ||
| Financial Statements: |
||
| 2 | ||
| 3 | ||
| 4-7 | ||
| Supplemental Schedule: |
||
| Schedule H, Line 4(i) – Schedule of Assets (Held at end of year) |
8-15 | |
| EXHIBIT 23.1 |
||
TAX DEFERRED SAVINGS PLAN
AND RETIREMENT TRUST
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Participants and the Plan Administrator of the
INTER-TEL, INCORPORATED TAX DEFERRED SAVINGS PLAN AND RETIREMENT TRUST
We have audited the accompanying statements of net assets available for benefits of Inter-Tel, Incorporated Tax Deferred Savings Plan and Retirement Trust at December 31, 2006 and 2005, and the related statement of changes in net assets available for benefits for the year ended December 31, 2006. 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 audits 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 Inter-Tel, Incorporated Tax Deferred Savings Plan and Retirement Trust at December 31, 2006 and 2005, and the changes in net assets available for benefits for the year ended December 31, 2006 in conformity with U.S. generally accepted accounting principles.
Our audits were conducted 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) 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, and 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.
| /s/ MAYER HOFFMAN MCCANN P.C. |
| June 27, 2007 |
| Phoenix, Arizona |
TAX DEFERRED SAVINGS PLAN AND RETIREMENT TRUST
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
| December 31, | ||||||
| 2006 | 2005 | |||||
| ASSETS: |
||||||
| CASH AND CASH EQUIVALENTS |
$ | 28,105 | $ | 15,030 | ||
| INVESTMENTS, AT FAIR VALUE |
76,434,189 | 67,031,368 | ||||
| RECEIVABLES |
||||||
| Employer contribution |
1,986,079 | 1,903,281 | ||||
| Participant contributions |
86 | 213,505 | ||||
| Interest receivable |
208 | — | ||||
| Total receivables |
1,986,373 | 2,116,786 | ||||
| TOTAL ASSETS |
78,448,667 | 69,163,184 | ||||
| LIABILITIES: |
||||||
| Excess contribution refund payable |
72,684 | 124,273 | ||||
| NET ASSETS AVAILABLE FOR BENEFITS |
$ | 78,375,983 | $ | 69,038,911 | ||
See accompanying notes to financial statements.
TAX DEFERRED SAVINGS PLAN AND RETIREMENT TRUST
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Year ended December 31, 2006
| Additions: |
|||
| Contributions: |
|||
| Employer |
$ | 1,986,880 | |
| Participant |
6,651,015 | ||
| Rollovers |
671,585 | ||
| Total contributions |
9,309,480 | ||
| Interest and dividends |
3,805,842 | ||
| Net appreciation in fair value of investments |
5,818,785 | ||
| Total additions |
18,934,107 | ||
| Deductions: |
|||
| Benefits paid to participants |
9,514,192 | ||
| Administrative expenses |
82,843 | ||
| Total deductions |
9,597,035 | ||
| NET INCREASE |
9,337,072 | ||
| NET ASSETS AVAILABLE FOR BENEFITS, beginning of year |
69,038,911 | ||
| NET ASSETS AVAILABLE FOR BENEFITS, end of year |
$ | 78,375,983 | |
See accompanying notes to financial statements.
TAX DEFERRED SAVINGS PLAN AND RETIREMENT TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2006 AND 2005
| (1) | Description of the Plan |
The following description of the Inter-Tel, Incorporated Tax Deferred Savings Plan and Retirement Trust (the “Plan”) provides only general information. Participants should refer to the Plan document for a more complete description of the Plan’s provisions.
General—The Plan is a defined contribution plan covering all employees of Inter-Tel (Delaware), Incorporated and its subsidiaries (the “Company”). Effective January 1, 2001, an employee was eligible to participate in the Plan subsequent to the pay period in which the employee completes one hour of service. Effective November 1, 2005, new employees are automatically enrolled at 1% unless they elect not to participate. The Plan was established on December 1, 1984 and is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).
Contributions—Each year, participants may contribute a percentage or dollar amount of their annual compensation up to the IRS maximum through regular payroll deductions. At any time during the year, participants have the opportunity to change the previously elected percentage or dollar deferral. Participants employed by the Company on December 31 of each year are eligible to receive a discretionary matching Company contribution. For 2006, the Company matched 50% of the participant’s basic contribution limited to six percent of the participant’s 2006 compensation. At the Company’s discretion, it may allocate additional funds at the end of each Plan year based on each participant’s salary.
Participant accounts—Each participant’s account is credited with the participant’s contributions, the Company’s contributions and an allocation of Plan earnings or losses. Allocations are based on participant account balances. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s account. Participants may elect to have their accounts invested in mutual funds or common stock of the Company as offered by the Plan, or they may elect to have their accounts invested in any combination of common and preferred stocks, bonds and mutual funds, or other investments available through individual self-directed brokerage accounts.
Vesting—Participants immediately vest in their voluntary contributions plus actual earnings thereon and amounts rolled over from former plans into the Plan. Vesting in the Company’s matching contribution is based on years of continuous service. The employer contribution portion of each participant account vests starting at the end of the first year of service at a graduated amount each year until reaching the sixth year of service. After six years, the participant is 100 percent vested in the employer contribution account.
Forfeitures—Forfeited balances of terminated participants’ nonvested accounts are used to reduce employer contributions. In 2006, forfeitures of $108,000 were used to reduce the employer contribution receivable and employer contributions at December 31, 2006 in the accompanying financial statements. As of December 31, 2006 and 2005, the forfeitures balance was approximately $2,000 and $0, respectively.
Participant loans—Participants may borrow from their fund amounts a minimum of $1,000, up to a maximum equal to the lesser of $50,000 or 50% of their vested account balance. Loan terms range from one to five years or up to twenty years for the purchase of a primary residence. Loans are secured by the balance in the participant’s account and bear interest at a rate commensurate with prevailing rates (prime plus 2%) at the time the loan is made as determined by the loan administrator. Principal and interest is paid ratably through payroll deductions.
Payment of benefits—Upon termination of service, a participant may receive a lump-sum amount equal to the vested value of his or her account, or upon death, disability, or retirement, elect to receive annual installments over a 10 year period.
| (1) | Description of the Plan (continued) |
Plan termination—Although it has not expressed any intent to do so, the Company has the discretionary right to discontinue its contributions at any time and to terminate the Plan, subject to the provisions of ERISA. In the event of termination of the Plan, participants will become 100 percent vested in all of their accounts.
| (2) | Significant accounting policies |
The significant accounting policies followed by the Plan are as follows:
Investment valuation and income recognition—The Plan’s investments are stated at fair value. Securities and mutual funds traded on national securities exchanges are valued at the last quoted sales price on the principal exchange on which traded as of the last day of the Plan’s year end. Securities and the limited partnership, for which no price is readily available on the valuation date, are valued at fair value as determined by the Plan Administrator. Participant loans are valued at their outstanding balances, which approximates fair value. The fair value of units of common/collective trusts are determined by Charles Schwab Trust Company.
Purchases and sales of securities are recorded on a trade date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.
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 net assets available for benefits, and the reported amounts of changes in net assets available for benefits during the year. Actual results could differ from those estimates.
Concentrations of credit risk—The Plan provides for various investment fund options, which in turn invest in any combination of mutual and other investment funds. Investment securities 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 risks in the near term could materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits and the statement of changes in net assets available for benefits. See Note 3 below for detail of investments exceeding five percent of the Plan’s net assets.
| (3) | Investments |
Investment information is summarized as follows:
| December 31, | ||||||
| 2006 | 2005 | |||||
| Investments at fair value: |
||||||
| Common stocks |
$ | 5,442,458 | $ | 8,236,736 | ||
| Preferred stock |
3,774 | 3,645 | ||||
| Corporate obligations |
— | 51,714 | ||||
| Common/collective trusts |
5,627,232 | 3,858,278 | ||||
| Money market accounts |
9,233,393 | 8,551,687 | ||||
| Mutual funds |
54,275,576 | 44,368,577 | ||||
| Unit investment trusts |
96,131 | 317,142 | ||||
| Participant loans |
1,700,689 | 1,579,458 | ||||
| Other assets |
9,694 | 10,186 | ||||
| Limited partnerships |
2,430 | 11,133 | ||||
| Promissory note |
12,612 | 12,612 | ||||
| Limited liability company units |
30,200 | 30,200 | ||||
| Total investments, at fair value |
$ | 76,434,189 | $ | 67,031,368 | ||
| (3) | Investments (continued) |
During 2006, the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated (depreciated) in fair value as follows:
| Common stocks |
$ | 1,543,930 | ||
| Preferred stock |
118 | |||
| Corporate obligations |
(463 | ) | ||
| Common/collective trusts |
538,681 | |||
| Mutual funds |
3,593,009 | |||
| Limited partnerships |
127,614 | |||
| Unit investment trusts |
15,896 | |||
| $ | 5,818,785 | |||
| Investments that represent five percent or more of the Plan’s net assets at December 31 are as follows: | ||||
| 2006 | ||||
| Schwab Government Securities Fund |
$ | 8,069,400 | ||
| Baron Growth Fund |
4,504,226 | |||
| First Eagle Overseas A |
9,757,070 | |||
| Growth Fund of America R4 |
7,225,084 | |||
| Schwab S&P 500 Index Inv |
6,101,946 | |||
| Vanguard Selected Value |
6,379,593 | |||
| Vanguard Windsor II Fund |
8,563,801 | |||
| 2005 | ||||
| Schwab Government Securities Fund |
$ | 7,669,598 | ||
| Baron Growth Fund |
3,824,734 | |||
| First Eagle Overseas A |
7,011,060 | |||
| Growth Fund of America R4 |
6,344,575 | |||
| Icon Information Tech Fund |
3,656,483 | |||
| Schwab S&P 500 Index Inv |
4,862,510 | |||
| Vanguard Selected Value |
4,539,119 | |||
| Vanguard Windsor II Fund |
6,897,170 | |||
| (4) | Administrative expenses |
Substantially all of the Plan’s administrative expenses, except for record-keeper fees, are paid by the Company.
| (5) | Party-in-interest transactions |
Certain plan investments are shares of common stock of the Company or are funds held and managed by Charles Schwab Trust Company, the trustee; therefore, these transactions qualify as party-in-interest transactions. Fees paid and accrued by the Plan to the trustee for administrative fees amounted to $82,843 for the year ended December 31, 2006.
| (6) | Income tax status |
The Plan has received a determination letter from the Internal Revenue Service dated February 11, 2004 stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code (“the Code”) and, therefore, the related trust is exempt from taxation. Subsequent amendments have been structured to and are intended to maintain the Plan’s tax status. 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.
| (7) | Excess contribution refund payable |
The Plan did not meet the requirements of the average deferral percentage test under the Internal Revenue Code for the years ended December 31, 2006 and 2005. Excess contributions and related investment earnings amounting to $72,684 and $124,273 for the years ended December 31, 2006 and 2005, respectively, are recorded as liabilities in the accompanying statements of net assets available for benefits. The 2006 excess contributions are also recorded as reduction to participant contributions and investment earnings in the accompanying statement of changes in net assets available for benefits. The Plan reimburses excess contributions to affected participants in the year following the year such contributions are withheld.
| INTER-TEL, INCORPORATED | EIN: 86-0220994 | |
| TAX DEFERRED SAVINGS PLAN AND RETIREMENT TRUST: PLAN #001 | ||
| FORM 5500, SCHEDULE H, LINE 4(i) | ||
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | ||
| DECEMBER 31, 2006 | ||
| (a) |
(b) Identity of issue, borrower, lessor or similar party |
(c) Description of investment including maturity date, rate of interest, collateral, par or maturity value |
(d) Cost | (e) Current value | |||||
| Common stocks: | |||||||||
| Adaptec |
200 shares | ** | $ | 932 | |||||
| Adtran, Inc |
400 shares | ** | 9,080 | ||||||
| Advanced Micro Devices |
200 shares | ** | 4,070 | ||||||
| Advanced Viral Research |
1,300 shares | ** | 429 | ||||||
| Alcatel Lucent ADR |
3,721 shares | ** | 52,913 | ||||||
| Allianz SE ADR |
300 shares | ** | 6,126 | ||||||
| Aluminum Corp China ADR |
1,085 shares | ** | 25,498 | ||||||
| Amazon.Com, Inc. |
50 shares | ** | 1,973 | ||||||
| Amdocs Limited |
200 shares | ** | 7,750 | ||||||
| American Cap Strategies, Ltd |
135 shares | ** | 6,245 | ||||||
| American Technology Corp |
2,000 shares | ** | 7,840 | ||||||
| Amicas, Inc. |
1,548 shares | ** | 4,551 | ||||||
| Amsurg Corp |
90 shares | ** | 2,070 | ||||||
| Amylin Pharmaceuticals, Inc |
2,000 shares | ** | 72,140 | ||||||
| Anheuser Busch Co. Inc. |
300 shares | ** | 14,760 | ||||||
| Apple Computer, Inc. |
450 shares | ** | 38,178 | ||||||
| Applied Materials, Inc. |
400 shares | ** | 7,380 | ||||||
| Archer Daniels Midland Co |
300 shares | ** | 9,588 | ||||||
| Arthrocare Corp |
100 shares | ** | 3,992 | ||||||
| Atwood Oceanics, Inc |
200 shares | ** | 9,794 | ||||||
| Barrick Gold Corporation |
400 shares | ** | 12,280 | ||||||
| Best Buy, Inc. |
225 shares | ** | 11,068 | ||||||
| Broadwing, Corp |
4 shares | ** | 62 | ||||||
| Brown & Brown, Inc. |
600 shares | ** | 16,926 | ||||||
| Calamp Corp |
200 shares | ** | 1,688 | ||||||
| Calpine Corporation |
1,000 shares | ** | 1,100 | ||||||
| Canon Inc SPN ADR |
50 shares | ** | 2,830 | ||||||
| Cardero Resources Corp |
4,000 shares | ** | 5,880 | ||||||
| CBIZ Inc |
1,000 shares | ** | 6,970 | ||||||
| Celgene Corp |
50 shares | ** | 2,877 | ||||||
| China Life Ins Co ADR |
79 shares | ** | 3,990 | ||||||
| China Pete & Chem ADR |
45 shares | ** | 4,169 | ||||||
| China Software Tech Grp |
312 shares | ** | 94 | ||||||
| Chipotle Mexican Grill |
35 shares | ** | 1,995 | ||||||
| Cisco System, Inc. |
3,500 shares | ** | 95,655 | ||||||
| Coeur D Alene Mines CP |
8,500 shares | ** | 42,075 | ||||||
| Conoco Phillips |
205.529 shares | ** | 14,788 | ||||||
| Consolidated Edison, Inc. |
40 shares | ** | 1,923 | ||||||
| Core Molding Techs, Inc. |
250 shares | ** | 2,413 | ||||||
| Covad Commun Group, Inc. |
750 shares | ** | 1,035 | ||||||
| Critical Path, Inc. |
6 shares | ** | 1 | ||||||
| Cummins Engine, Inc. |
20.06 shares | ** | 2,371 | ||||||
| Davita, Inc. |
45 shares | ** | 2,560 | ||||||
| Dell, Inc. |
1,200 shares | ** | 30,108 | ||||||
- 8 -
| INTER-TEL, INCORPORATED | EIN: 86-0220994 | |
| TAX DEFERRED SAVINGS PLAN AND RETIREMENT TRUST: PLAN #001 | ||
| FORM 5500, SCHEDULE H, LINE 4(i) | ||
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | ||
| DECEMBER 31, 2006 | ||
| (a) |
(b) Identity of issue, borrower, lessor or similar party |
(c) Description of investment including maturity date, rate of interest, collateral, par or maturity value |
(d) Cost | (e) Current value | ||||
| Dentsply International |
75 shares | ** | 2,239 | |||||
| Desire Petroleum ORD |
1,000 shares | ** | 665 | |||||
| Diageo PLC |
30 shares | ** | 2,379 | |||||
| Digital Lightwave, Inc. |
210 shares | ** | 32 | |||||
| Dreamworks Animation Inc. |
65 shares | ** | 1,917 | |||||
| DSL.net, Inc. |
1,000 shares | ** | 19 | |||||
| Duke Energy Corp |
62 shares | ** | 2,059 | |||||
| E M C Corp Mass |
800 shares | ** | 10,560 | |||||
| Eagle Materials, Inc. |
50 shares | ** | 2,162 | |||||
| Earthshell, Corp |
8,000 shares | ** | 2,080 | |||||
| EBay, Inc. |
1,351 shares | ** | 40,625 | |||||
| Edulink, Inc. |
43,000 shares | ** | 4 | |||||
| Emergency Filtration Prds. |
13,000 shares | ** | 6,240 | |||||
| Emulex, Corp |
600 shares | ** | 11,706 | |||||
| Encana Corporation |
40 shares | ** | 1,838 | |||||
| Ensco Intl Inc. |
200.069 shares | ** | 10,015 | |||||
| Exxon Mobil Corporation |
205.018 shares | ** | 15,711 | |||||
| First Horizon National Corp |
40 shares | ** | 1,671 | |||||
| Flextronics International, Ltd. |
600 shares | ** | 6,888 | |||||
| Forest Labs, Inc. |
100 shares | ** | 5,060 | |||||
| Foster Wheeler ORD |
45 shares | ** | 2,481 | |||||
| Foster Wheeler, Ltd 07WT |
900 shares | ** | 2,961 | |||||
| Foundry Networks, Inc. |
50 shares | ** | 749 | |||||
| Freeport-McMoran Copper & Go CL B |
204.121 shares | ** | 11,376 | |||||
| Frozen Food Express INDS |
270.929 shares | ** | 2,330 | |||||
| Fuwei Films Hldgs Co., Ltd. |
800 shares | ** | 12,640 | |||||
| General Electric Company |
2,123.504 shares | ** | 79,016 | |||||
| Gerdau SA Spons ADR F |
100 shares | ** | 1,600 | |||||
| Globalstar Telecom ORD |
500 shares | ** | 6 | |||||
| Goldcorp, Inc. |
1,000 shares | ** | 28,440 | |||||
| Goldspring, Inc. |
40,000 shares | ** | 148 | |||||
| Google Inc., Class A |
50 shares | ** | 23,024 | |||||
| Great Plains Energy, Inc. |
50 shares | ** | 1,590 | |||||
| Gunslinger Records, Inc. |
42,500 shares | ** | 43 | |||||
| Helix Energy Sol Group, Inc. |
255 shares | ** | 7,999 | |||||
| Hewlett-Packard Company |
689 shares | ** | 28,380 | |||||
| Hollis-Eden Pharmaceuticals, Inc. |
2,000 shares | ** | 10,520 | |||||
| Home Depot, Inc. |
611.58 shares | ** | 24,561 | |||||
| Home Solutions Amer Inc. |
3,200 shares | ** | 18,752 | |||||
| Hovnanian Enterprises, Inc. |
600 shares | ** | 20,340 | |||||
| HSBC Hldgs Plc Adr |
25 shares | ** | 2,291 | |||||
| IMPath Liquidating TR |
16 shares | ** | 38 | |||||
| Intel Corp |
3,857.39 shares | ** | 78,112 | |||||
| * |
Inter-Tel (Delaware) Incorporated Common Stock |
145,701 shares | ** | 3,228,734 | ||||
| Intl Business Machines |
104.037 shares | ** | 10,107 | |||||
| Intl Game Technology |
22 shares | ** | 1,016 | |||||
| Ionatron, Inc. |
3,000 shares | ** | 12,300 |
- 9 -
| INTER-TEL, INCORPORATED | EIN: 86-0220994 | |
| TAX DEFERRED SAVINGS PLAN AND RETIREMENT TRUST: PLAN #001 | ||
| FORM 5500, SCHEDULE H, LINE 4(i) | ||
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | ||
| DECEMBER 31, 2006 | ||
| (a) |
(b) Identity of issue, borrower, lessor or similar party |
(c) Description of investment including maturity date, rate of interest, collateral, par or maturity value |
(d) Cost | (e) Current value | ||||
| ISCO International, Inc. |
4,640 shares | ** | 1,578 | |||||
| Ivanhoe Energy, Inc. |
4,000 shares | ** | 5,400 | |||||
| Johnson & Johnson |
101.158 shares | ** | 6,678 | |||||
| Keyspan Corp |
45 shares | ** | 1,853 | |||||
| K-Tel Intl Inc. |
362 shares | ** | 11 | |||||
| Lan Chile SA Spon ADR |
50 shares | ** | 2,749 | |||||
| Level 3 Communications, Inc. |
800 shares | ** | 4,480 | |||||
| Linear Technology Corporation |
50 shares | ** | 1,516 | |||||
| Logitech Intl S A |
60 shares | ** | 1,716 | |||||
| Lowes Companies |
2,448.6 shares | ** | 76,274 | |||||
| Mangosoft Inc. |
9 shares | ** | 7 | |||||
| McHenry Metals Golf Corp |
5,000 shares | ** | 1 | |||||
| Merck & Co, Inc. |
1,500 shares | ** | 65,400 | |||||
| Microage, Inc. |
250 shares | ** | 1 | |||||
| Microsoft Corp. |
5,412.749 shares | ** | 161,625 | |||||
| Minefinders Ltd |
890 shares | ** | 7,921 | |||||
| Motorola Incorporated |
600.621 shares | ** | 12,349 | |||||
| Neomagic Corp |
100 shares | ** | 587 | |||||
| Neopharm, Inc. |
300 shares | ** | 501 | |||||
| Netflix, Inc. |
1,500 shares | ** | 38,790 | |||||
| Network Appliance, Inc. |
40 shares | ** | 1,571 | |||||
| Newmont Mining Corp |
250.874 shares | ** | 11,327 | |||||
| Nokia Corp SPON ADR F |
400 shares | ** | 8,128 | |||||
| Nortel Networks CP |
850 shares | ** | 22,721 | |||||
| Northpoint Commun HLDGS |
100 shares | ** | 2 | |||||
| Novagold Res Inc |
790 shares | ** | 13,556 | |||||
| Novartis AG |
50 shares | ** | 2,872 | |||||
| O’Reilly Automotive, Inc. |
1,000 shares | ** | 32,060 | |||||
| Oilex Inc. |
9,000 shares | ** | 1 | |||||
| Open JT Stk Co Vimpel-Communications |
40 shares | ** | 3,158 | |||||
| Oracle Corporation |
2,200 shares | ** | 37,708 | |||||
| Owens Corning, Inc. |
60 shares | ** | 1,794 | |||||
| P I C O Holdings Inc. |
65 shares | ** | 2,260 | |||||
| Pacific Sunwear California Inc |
100 shares | ** | 1,958 | |||||
| Packeteer, Inc. |
500 shares | ** | 6,800 | |||||
| Patterson Companies |
100 shares | ** | 3,551 | |||||
| Peabody Energy Corp |
200.756 shares | ** | 8,113 | |||||
| Pfizer Incorporated |
1,000 shares | ** | 25,900 | |||||
| Pinnacle West Cap Corp |
40 shares | ** | 2,028 | |||||
| Precision Drilling TR |
791 shares | ** | 18,320 | |||||
| Priceline.com Inc. |
33 shares | ** | 1,439 | |||||
| Procter & Gamble Co. |
427 shares | ** | 27,443 | |||||
| Provident Energy Trust |
2,000 shares | ** | 21,824 | |||||
| Psychiatric Solutions |
75 shares | ** | 2,814 | |||||
| Rayonier, Inc. |
51.775 shares | ** | 2,125 | |||||
| Redhat, Inc. |
200 shares | ** | 4,600 | |||||
| Regions Financial CP |
40 shares | ** | 1,496 | |||||
| RF Micro Devices, Inc. |
100 shares | ** | 679 | |||||
| Royal Bk CDA Montreal Que |
60 shares | ** | 2,859 | |||||
| Ryanair Hldgs PLC ADR |
30 shares | ** | 2,445 | |||||
| Salesforce.Com |
50 shares | ** | 1,823 | |||||
| Sandisk, Corp. |
200 shares | ** | 8,606 | |||||
| Save the World Air, Inc. |
5,900 shares | ** | 3,540 | |||||
| Schlumberger Ltd. |
100.208 shares | ** | 6,329 | |||||
| Skechers U S A Inc. |
75 shares | ** | 2,498 | |||||
| Sonic Corp. |
225 shares | ** | 5,389 | |||||
| Southwest Airls Co. |
135 shares | ** | 2,068 |
- 10 -
| INTER-TEL, INCORPORATED | EIN: 86-0220994 | |
| TAX DEFERRED SAVINGS PLAN AND RETIREMENT TRUST: PLAN #001 | ||
| FORM 5500, SCHEDULE H, LINE 4(i) | ||
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | ||
| DECEMBER 31, 2006 | ||
| (a) |
(b) Identity of issue, borrower, lessor or similar party |
(c) Description of investment including maturity date, rate of interest, collateral, par or maturity value |
(d) Cost | (e) Current value | ||||
| Spectralink Corp. |
500 shares | ** | 4,300 | |||||
| Sprint Nextel Corp. |
89 shares | ** | 1,681 | |||||
| Stryker, Corp. |
1,000 shares | ** | 55,110 | |||||
| Sun Microsystems, Inc. |
500 shares | ** | 2,710 | |||||
| Superconductor Techs |
129 shares | ** | 228 | |||||
| Sysco Corp. |
1,000 shares | ** | 36,760 | |||||
| Taiwan Semiconductor Mfg Co ADR |
200 shares | ** | 2,186 | |||||
| Target Corporation |
206.219 shares | ** | 11,765 | |||||
| TD Ameritrade Holding CP |
1,000 shares | ** | 16,180 | |||||
| Tenaris S A ADR |
500 shares | ** | 24,945 | |||||
| Terabeam, Inc. |
450 shares | ** | 896 | |||||
| Texas Instruments, Inc. |
700 shares | ** | 20,160 | |||||
| The Charles Schwab Corp. |
1,000 shares | ** | 19,340 | |||||
| Thor Industries, Inc. |
101.291 shares | ** | 4,456 | |||||
| Tibco Software Inc. |
200 shares | ** | 1,888 | |||||
| Tom Online Inc. ADR |
200 shares | ** | 3,096 | |||||
| Top Tankers Inc. |
1,000 shares | ** | 4,650 | |||||
| TXU Corp |
.502 shares | ** | 27 | |||||
| Tyco Intl, Ltd. |
500 shares | ** | 15,200 | |||||
| U S Global Aerospace, Inc. |
225,336 shares | ** | 2,321 | |||||
| Veolia Environ ADR |
50 shares | ** | 3,763 | |||||
| Verifone Hldgs Inc. |
50 shares | ** | 1,770 | |||||
| Wachovia, Corp. |
2,780 shares | ** | 158,321 | |||||
| Walgreen Company |
205.138 shares | ** | 9,414 | |||||
| Wal-Mart Stores, Inc. |
950 shares | ** | 43,871 | |||||
| Washington Mutual Inc. |
40 shares | ** | 1,820 | |||||
| Wattage Monitor, Inc. |
6,000 shares | ** | 1 | |||||
| Willis Group Holdings |
300 shares | ** | 11,913 | |||||
| Wimm Bill Dann Food ADR |
45 shares | ** | 2,995 | |||||
| Yum Brands Inc. |
50 shares | ** | 2,940 | |||||
| 8x8 Inc |
2,500 shares | ** | 2,925 | |||||
| Total common stocks |
5,442,458 | |||||||
| Preferred Stock: |
||||||||
| Annaly Mtg Mgmt PFD |
150 shares | ** | 3,774 | |||||
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| INTER-TEL, INCORPORATED | EIN: 86-0220994 | |
| TAX DEFERRED SAVINGS PLAN AND RETIREMENT TRUST: PLAN #001 | ||
| FORM 5500, SCHEDULE H, LINE 4(i) | ||
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | ||
| DECEMBER 31, 2006 | ||
| (a) |
(b) Identity of issue, borrower, lessor or similar party |
(c) Description of investment including maturity date, rate of interest, collateral, par or maturity value |
(d) Cost | (e) Current value | ||||
| Mutual funds: |
||||||||
| Baron Partners Fund |
227.066 shares | ** | 5,073 | |||||
| Blackrock Debt Strategies |
2,000 shares | ** | 14,840 | |||||
| Cornerstone Strat Val Fd |
14,550 shares | ** | 122,948 | |||||
| Jensen Portfolio CL I |
864.330 shares | ** | 23,268 | |||||
| Aberdeen Asia Pac Income |
2,000 shares | ** | 12,440 | |||||
| Acadian Emerging Mkts Port Instl CL |
469.059 shares | ** | 12,979 | |||||
| Allianz Nacm Pacific Rim Fund CL D |
686.106 shares | ** | 10,209 | |||||
| Allianz RCM Healthcare Fund CL D |
553.71 shares | ** | 12,414 | |||||
| Alpine Intl Real Estate Equity FD Y |
569.426 shares | ** | 23,187 | |||||
| American Balanced Fund CL |
466.496 shares | ** | 8,873 | |||||
| American Cent Global Gold Fund |
137.363 shares | ** | 2,696 | |||||
| American FD Economy FD CL F |
115.722 shares | ** | 3,071 | |||||
| Ariel Appreciation Fund |
186.274 shares | ** | 9,003 | |||||
| Ariel Fund |
610.799 shares | ** | 31,646 | |||||
| Artisan International Fund |
760.666 shares | ** | 22,052 | |||||
| Artisan International Value Fund |
551.167 shares | ** | 15,394 | |||||
| Artisan Midcap FD |
196.524 shares | ** | 5,986 | |||||
| Baron Fifth Avenue Growth Fund |
1,165.695 shares | ** | 15,282 | |||||
| Baron Growth Fund |
90,301.243 shares | ** | 4,504,226 | |||||
| Blackrock Senior High Income |
123.093 shares | ** | 803 | |||||
| Burnham Financial Services FD |
168.134 shares | ** | 3,793 | |||||
| Calamos Growth A |
37,942.985 shares | ** | 2,045,127 | |||||
| Calamos Growth FD CL A |
372.203 shares | ** | 20,062 | |||||
| Calvert Income Fund |
163.887 shares | ** | 2,748 | |||||
| Cohen & Steers Realty Shares |
110.68 shares | ** | 9,900 | |||||
| Cornerstone Total Return |
5,700 shares | ** | 111,834 | |||||
| Dodge & Cox Intl Stock Fund |
4,134.785 shares | ** | 180,525 | |||||
| Dodge & Cox Stock Fund |
49.823 shares | ** | 7,646 | |||||
| Dreyfus Appreciation Fund |
951.999 shares | ** | 41,688 | |||||
| Dreyfus Midcap Index Fund |
265.089 shares | ** | 7,754 | |||||
| Dreyfus Premier Emerging Markets CL |
917.007 shares | ** | 19,340 | |||||
| Dreyfus Small Cap Stock Index |
462.378 shares | ** | 10,880 | |||||
| Equity Residual PPTY Trust |
101.441 shares | ** | 5,148 | |||||
| Fairholme Fund |
1,143.36 shares | ** | 33,146 | |||||
| Fidelity Latin American Fund |
159.75 shares | ** | 7,146 | |||||
| First Eagle Overseas A |
389,037.839 shares | ** | 9,757,070 | |||||
| First Financial Fund Inc. |
300 shares | ** | 4,536 | |||||
| Franklin SM Cap Growth CL A |
277.924 shares | ** | 10,497 | |||||
| Growth Fund of America CL F |
666.48 shares | ** | 21,781 | |||||
| Growth Fund of America R4 |
221,221.186 shares | ** | 7,225,084 | |||||
| Harbor Bond Fund |
113.126 shares | ** | 1,308 | |||||
| Harding Loevner Emerging Markets |
598.091 shares | ** | 26,771 | |||||
| Hennessy Cornerstone Growth Fund |
1,992.446 shares | ** | 36,302 | |||||
| ING Clarion Re Incm Fund |
1,000 shares | ** | 24,680 | |||||
| Inst’l Select S&P 500 Index |
1,903.457 shares | ** | 21,281 | |||||
| Janus Adv Intl Growth CL I |
1,575.843 shares | ** | 85,600 | |||||
| Janus Growth & Income Fund |
403.001 shares | ** | 15,419 | |||||
| Janus Mid Cap Value Inv Shares |
1,208.314 shares | ** | 28,770 | |||||
| JPMorgan Core Bond Fund |
275,831.303 shares | ** | 2,915,537 | |||||
| Julius Baer Global Equity Fd CL A |
282.247 shares | ** | 11,389 | |||||
| Julius Baer Global High-Yield CL A |
922.443 shares | ** | 10,184 | |||||
| Julius Baer Intl Equity Fund II CL A |
2,298.607 shares | ** | 34,686 | |||||
| Loomis Sayles Bond Fund |
5,516.278 shares | ** | 78,828 | |||||
| Loomis Sayles Bond Fund CL R |
658.718 shares | ** | 9,387 | |||||
| Loomis Sayles Small Cap |
731.997 shares | ** | 19,230 | |||||
| Mainstay Icap Select Equity CL I |
2,429.2 shares | ** | 101,103 |
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| INTER-TEL, INCORPORATED | EIN: 86-0220994 | |
| TAX DEFERRED SAVINGS PLAN AND RETIREMENT TRUST: PLAN #001 | ||
| FORM 5500, SCHEDULE H, LINE 4(i) | ||
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | ||
| DECEMBER 31, 2006 | ||
| (a) |
(b) Identity of issue, borrower, lessor or similar party |
(c) Description of investment including maturity date, rate of interest, collateral, par or maturity value |
(d) Cost | (e) Current value | ||||
| Managed High Yld Plus Fd |
8,000 shares | ** | 39,840 | |||||
| Managers Bond Fund |
401.114 shares | ** | 9,968 | |||||
| Managers Fremont Bond Fund |
247.388 shares | ** | 2,531 | |||||
| Managers Fremont Micro Cap Fund |
51.921 shares | ** | 1,850 | |||||
| Marsico Intl Opportunities Fd |
3,060.956 shares | ** | 51,761 | |||||
| Matthews Asian Tech Fd CL I |
1,273.885 shares | ** | 10,089 | |||||
| Matthews Korea Fund CL I |
1,615.509 shares | ** | 10,065 | |||||
| Meridian Value FD |
797.194 shares | ** | 28,380 | |||||
| MFA Mortgage Investments |
300 shares | ** | 2,307 | |||||
| Morgan Stanley Inst US Real Estate A |
69.602 shares | ** | 1,965 | |||||
| Morgan Stanley U S Real Estate |
11,183.939 shares | ** | 315,723 | |||||
| Navellier Mid Cap Growth |
1,681.188 shares | ** | 51,612 | |||||
| NB International FD Inv Class |
901.044 shares | ** | 22,058 | |||||
| NB Ltd Maturity Bond Fund |
502.685 shares | ** | 4,569 | |||||
| Oakmark Equity Income FD |
3,511.038 shares | ** | 90,866 | |||||
| Oakmark Fund |
1,646.932 shares | ** | 75,627 | |||||
| Oakmark International Fund |
1,046.434 shares | ** | 26,632 | |||||
| Oppenheimer Intl Bond Fund CL A |
461.215 shares | ** | 2,777 | |||||
| Penn West Energy Trust |
600 shares | ** | 18,336 | |||||
| Pimco Real Return Fd Instl |
7,283.477 shares | ** | 77,569 | |||||
| Pimco Total Return Fund Instl Class |
3,693.663 shares | ** | 38,340 | |||||
| Pioneer Mid Cap Value Fund CL A |
565.828 shares | ** | 12,884 | |||||
| Prudent Bear Fund |
4,385.768 shares | ** | 24,999 | |||||
| Putnam Growth & Income CL A |
1,729.122 shares | ** | 34,582 | |||||
| Putnam Intl Equity Fund CL A |
123.053 shares | ** | 3,855 | |||||
| RMK Advantage Income Fd |
2,800 shares | ** | 44,520 | |||||
| RMK Strategic Income Fd |
1,500 shares | ** | 23,055 | |||||
| Royce Total Return Fund |
1,810.696 shares | ** | 24,897 | |||||
| RS Smaller Company Growth Fund |
895.105 shares | ** | 18,887 | |||||
| Schroder US Opportunities Inv |
151,611.548 shares | ** | 3,327,873 | |||||
| Schwab 1000 Index Fund – Investor SHA |
418.256 shares | ** | 17,241 | |||||
| Schwab Premier Equity Inv Shares |
1,006.912 shares | ** | 13,019 | |||||
| Schwab S&P 500 Index Sel |
278,627.664 shares | ** | 6,101,946 | |||||
| Schwab Total Bd Mkt Index Fund |
1,474.06 shares | ** | 14,505 | |||||
| Schwab Total Stock Market - Inv |
22,904.657 shares | ** | 557,499 | |||||
| Selected American Shares |
849.234 shares | ** | 39,124 | |||||
| SL Green Rlty Corp |
.156 shares | ** | 21 | |||||
| Sound Shore Fund |
461.422 shares | ** | 18,083 | |||||
| SSGA Intl Stock Selection Fund |
567.684 shares | ** | 7,840 | |||||
| Tamarack Mico Cap Value Fund CL S |
1,011.139 shares | ** | 23,024 | |||||
| Templeton Developing markets Trust |
312.403 shares | ** | 8,835 | |||||
| Templeton Dragon Fund |
100 shares | ** | 2,626 | |||||
| Templeton Emerging Market Fund |
147.694 shares | ** | 2,705 | |||||
| Templeton Foreign Fund CL A |
2,456.781 shares | ** | 33,510 | |||||
| Third Avenue Value Fund |
606.369 shares | ** | 36,055 | |||||
| Thornburg Core Growth Fund Class I |
1,701.137 shares | ** | 30,944 | |||||
| UMB Scout Small Cap Fund |
229.294 shares | ** | 3,859 | |||||
| US Global Inv Global |
660.996 shares | ** | 9,809 | |||||
| US Global Regent Eastern European |
1,620.420 shares | ** | 73,697 | |||||
| Van Kampen Real Estate SEC Fd A |
693.798 shares | ** | 21,681 | |||||
| Vanguard 500 Index Fund Investor SHS |
233.097 shares | ** | 30,440 | |||||
| Vanguard GNMA Fund Investor SHS |
297.453 shares | ** | 3,037 | |||||
| Vanguard Inflation Protected Sec Fd |
216.695 shares | ** | 2,553 | |||||
| Vanguard Selected Value |
302,493.744 shares | ** | 6,379,593 | |||||
| Vanguard Wellesley Income Fund |
519.966 shares | ** | 11,335 | |||||
| Vanguard Windsor II Fund |
246,440.319 shares | ** | 8,563,801 | |||||
| Western Asset Global Ptnrs Income Fd |
503.251 shares | ** | 6,411 |
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| INTER-TEL, INCORPORATED | EIN: 86-0220994 | |
| TAX DEFERRED SAVINGS PLAN AND RETIREMENT TRUST: PLAN #001 | ||
| FORM 5500, SCHEDULE H, LINE 4(i) | ||
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | ||
| DECEMBER 31, 2006 | ||
| (a) |
(b) Identity of issue, borrower, lessor or similar party |
(c) Description of investment including maturity date, rate of interest, collateral, par or maturity value |
(d) Cost | (e) Current value | ||||
| WF Advantage Mid Cap Disciplined |
344.911 shares | ** | 7,840 | |||||
| WF Advantage Ultra Short Term Income |
1,760.786 shares | ** | 16,041 | |||||
| William Blair Emerging Mkt Grwth CL N |
568.763 shares | ** | 11,045 | |||||
| William Blair Intl Growth Fund N |
607.128 shares | ** | 16,817 | |||||
| Winslow Green Growth Fd |
486.613 shares | ** | 9,659 | |||||
| Total Mutual funds |
54,275,576 | |||||||
| Unit Investment Trusts: |
||||||||
| IShares MSCI Jpn Idx Fund |
150 shares | ** | 2,132 | |||||
| IShares TR Dow Jones Select Dividend |
100.736 shares | ** | 7,125 | |||||
| Ishares TR Lehman Tips Bond Fund |
25.683 shares | ** | 2,537 | |||||
| IShares Trust Index Fund |
101.167 shares | ** | 11,275 | |||||
| Nasdaq 100 Shares |
1,505.264 shares | ** | 64,967 | |||||
| SPDR DJ Global Titans |
30.304 shares | ** | 2,306 | |||||
| Wisdomtree Largecap Div |
100 shares | ** | 5,789 | |||||
| Total Unit Investment Trusts |
96,131 | |||||||
| Money Market Accounts: |
||||||||
| SCH Advisor Cash Reserve Premier |
8,728.38 shares | ** | 8,728 | |||||
| Schwab Government Securities Fund |
8,069,399.8 shares | ** | 8,069,400 | |||||
| Schwab Money Market Fund |
1,105,146.87 shares | ** | 1,105,147 | |||||
| Stock Liquidity |
140.2 shares | ** | 140 | |||||
| Washington MU Bk 5.1% 2/15/07 |
50,000 shares | ** | 49,978 | |||||
| Total Money Market Accounts |
9,233,393 | |||||||
- 14 -
| INTER-TEL, INCORPORATED | EIN: 86-0220994 | |
| TAX DEFERRED SAVINGS PLAN AND RETIREMENT TRUST: PLAN #001 | ||
| FORM 5500, SCHEDULE H, LINE 4(i) | ||
| SCHEDULE OF ASSETS (HELD AT END OF YEAR) | ||
| DECEMBER 31, 2006 | ||
| (a) |
(b) Identity of issue, borrower, lessor or similar party |
(c) Description of investment including maturity date, rate of interest, collateral, par or maturity value |
(d) Cost | (e) Current value | |||||
| Common/Collective Trusts: |
|||||||||
| Schwab Managed Retirement 2010 |
54,078.711 shares | ** | 811,181 | ||||||
| Schwab Managed Retirement 2020 |
141,376.269 shares | ** | 2,356,742 | ||||||
| Schwab Managed Retirement 2030 |
72,397.364 shares | ** | 1,306,772 | ||||||
| Schwab Managed Retirement 2040 |
59,792.787 shares | ** | 1,107,362 | ||||||
| Schwab Managed Retirement, Inc. |
4,047.832 shares | ** | 45,174 | ||||||
| Total Common/Collective Trusts |
5,627,232 | ||||||||
| Other Assets: | |||||||||
| Pengrowth Energy Trust |
60 shares | ** | 1,033 | ||||||
| San Juan Basin Royal TR |
254.003 shares | ** | 8,661 | ||||||
| Total Other Assets |
9,694 | ||||||||
| Limited Liability Company Units | |||||||||
| Angstrom Preferred Holdings, LLC |
20,000 units | ** | 30,200 | ||||||
| Promissory Note: | |||||||||
| Baptist Foundation Promissory Note |
Interest rate: 11.75%; maturity date: November 7, 2012; unsecured | ** | 12,612 | ||||||
| Limited Partnerships: | |||||||||
| Beaconsfield LP Fund I |
1 unit | ** | 2,430 | ||||||
| Participant loans | Interest rates ranging from 6.00% to 10.25% | ** | 1,700,689 | ||||||
| Total investments | $ | 76,434,189 | |||||||
| * | Denotes a party-in-interest |
| ** | Disclosure of historical cost information is not required for participant directed investments. |
- 15 -
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Inter-Tel, Incorporated Tax Deferred Savings Plan and Retirement Trust has duly caused this report to be signed by the undersigned hereunto duly authorized.
Inter-Tel, Incorporated Tax Deferred Savings Plan and Retirement Trust
| /s/ Kurt R. Kneip |
| Inter-Tel (Delaware), Incorporated |
| Kurt R. Kneip |
| Sr. Vice President and Chief Financial Officer |
| Date: June 27, 2007 |
EXHIBIT INDEX
Exhibit:
Exhibit 23.1 – Consent of Independent Registered Public Accounting Firm