-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, LAoLxWDeY8ywL6FR4/+8t8GZ2lrpDZaQ+vi7AeI4zLr98A52nRZz7JTQD14GF+Uz xhklRzAktA63KW2kXteA/w== 0000017797-94-000016.txt : 19940707 0000017797-94-000016.hdr.sgml : 19940707 ACCESSION NUMBER: 0000017797-94-000016 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19931230 FILED AS OF DATE: 19940624 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CAROLINA POWER & LIGHT CO CENTRAL INDEX KEY: 0000017797 STANDARD INDUSTRIAL CLASSIFICATION: 4911 IRS NUMBER: 560165465 STATE OF INCORPORATION: NC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03382 FILM NUMBER: 94535624 BUSINESS ADDRESS: STREET 1: 411 FAYETTEVILLE ST CITY: RALEIGH STATE: NC ZIP: 27601 BUSINESS PHONE: 9195466111 11-K 1 ANNUAL REPORT ON FORM 11-K FOR SPSP SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 11-K (Mark One) [ X ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED] For the fiscal year ended December 30, 1993 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] For the transition period from _________ to __________ Commission file number 2-96881 STOCK PURCHASE-SAVINGS PLAN OF CAROLINA POWER & LIGHT COMPANY ______________________________ Full title of the plan and the address of the plan, if different from that of the issuer named below CAROLINA POWER & LIGHT COMPANY (a North Carolina corporation) 411 Fayetteville Street, Raleigh, North Carolina 27601-1748 ___________________________________________________________ Name of issuer of the securities held pursuant to the plan and address of its principal executive office STOCK PURCHASE-SAVINGS PLAN OF CAROLINA POWER & LIGHT COMPANY FINANCIAL STATEMENTS AND EXHIBITS TABLE OF CONTENTS (A) Financial Statements PAGE -------------------- ---- Independent Auditors' Report . . . . . . . . . . . . . 3 Statement of Net Assets Available for Benefits, December 30, 1993 . . . . . . . . . . . . . . . . 4 Statement of Changes in Net Assets Available for Benefits For the Year Ended December 30, 1993 . . 5 Statement of Net Assets Available for Benefits, December 30, 1992 . . . . . . . . . . . . . . . . 6 Statement of Changes in Net Assets Available for Benefits For the Year Ended December 30, 1992 . . 7 Notes to Financial Statements. . . . . . . . . . . . 8-13 Item 27a - Schedule of Assets Held for Investment Purposes as of December 30, 1993 . . . 14 Item 27d - Schedule of Reportable Transactions For the Year Ended December 30, 1993. . . . . . . 15 (B) Exhibits -------- Exhibit No. 23 - Consent of Deloitte & Touche INDEPENDENT AUDITORS' REPORT ____________________________ Stock Purchase-Savings Plan of Carolina Power & Light Company We have audited the accompanying statements of net assets available for benefits of the Stock Purchase-Savings Plan of Carolina Power & Light Company as of December 30, 1993 and 1992, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the 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 generally accepted auditing standards. 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, such financial statements present fairly, in all material respects, the net assets available for benefits of the Plan at December 30, 1993 and 1992 and the changes in net assets available for benefits for the years then ended in conformity with genenerally 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 information by fund is presented for the purpose of additional analysis of the basic financial statements rather than to present information regarding the net assets available for benefits and changes in net assets available for benefits of the individual funds, and is not a required part of the basic financial statements. The accompanying supplemental schedules of (1) assets held for investment purposes as of December 30, 1993 and (2) reportable transactions for the year ended December 30, 1993 are presented for the purpose of additional analysis and are not a required part of the basic financial statements, but are 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 information by fund and supplemental schedules are the responsibility of the Plan's management. Such supplemental information and schedules have been subjected to the auditing procedures applied in our audit of the basic financial statements and, in our opinion, are fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole. /s/ DELOITTE & TOUCHE June 17, 1994
STOCK PURCHASE-SAVINGS PLAN OF CAROLINA POWER & LIGHT COMPANY Statement of Net Assets Available for Benefits December 30, 1993 ------------------------------------------------------------ PARTICIPANTS' EQUITY ------------------------------------------------------------ EQUITY CAROLINA POWER U.S. FIXED FIDELITY UNALLOCATED & LIGHT COMPANY SAVINGS INCOME EQUITY- TOTAL PLAN TO PARTICIPANTS COMMON STOCK BONDS FUND INCOME FUND ---------- --------------- ------------ ------- ------ ----------- ASSETS (Note 1) (Note 3) Investments: Carolina Power & Light Company Common Stock $723,774,103 $304,752,466 $419,021,637 $ - $ - $ - U. S. Savings Bonds 10,563,163 - - 10,563,163 - - Fidelity Equity - Income Fund 18,677,450 - - - - 18,677,450 Fixed Income Fund 10,474,317 - - - 10,474,317 - Participants' Loans Receivable 22,781,351 22,781,351 - - - ----------- ----------- ----------- ----------- ----------- ----------- Total Investments 786,270,384 327,533,817 419,021,637 10,563,163 10,474,317 18,677,450 Dividends and Interest Receivable 10,181,262 4,264,026 5,862,854 - 54,382 - Incentive Contribution Receivable 6,100,059 - 6,100,059 - - - Cash 554,179 536,191 22 17,966 - - ----------- ----------- ----------- ----------- ----------- ----------- Total Assets 803,105,884 332,334,034 430,984,572 10,581,129 10,528,699 18,677,450 ----------- ----------- ----------- ----------- ----------- ----------- LIABILITIES ESOP Loan Payable 216,223,139 216,223,139 - - - - Participants' Loans Payable 23,317,518 23,317,518 - - - - Interest Payable - ESOP Loan 2,185,870 2,185,870 - - - - ----------- ----------- ----------- ----------- ----------- ----------- Total Liabilities 241,726,527 241,726,527 - - - - ----------- ----------- ----------- ----------- ----------- ----------- NET ASSETS AVAILABLE FOR BENEFITS $561,379,357 $90,607,507 $430,984,572 $10,581,129 $10,528,699 $18,677,450 =========== =========== =========== =========== =========== =========== See Notes to Financial Statements.
STOCK PURCHSE-SAVINGS PLAN OF CAROLINA POWER & LIGHT COMPANY Statement of Changes in Net Assets Available for Benefits For the Year Ended December 30, 1993 ---------------------------------------------------------------- PARTICIPANTS' EQUITY ---------------------------------------------------------------- EQUITY CAROLINA POWER U.S. FIXED FIDELITY UNALLOCATED & LIGHT COMPANY SAVINGS INCOME EQUITY- TOTAL PLAN TO PARTICIPANTS COMMON STOCK BONDS FUND INCOME FUND ----------- --------------- ------------ ------- ------ ----------- INCREASES IN NET ASSETS (Note 1) (Note 3) Investment Income: Dividends $40,046,004 $16,996,641 $22,421,472 $ - $ - $627,891 Net Appreciation in Fair Value 60,901,324 27,190,260 31,417,894 - - 2,293,170 Interest 4,861,708 1,311,251 - 2,984,496 565,961 - Contributions: Employer 32,813,879 17,930,009 14,883,870 - - - Participants 21,977,033 - 16,582,448 739,674 1,538,931 3,115,980 ----------- ----------- ----------- ----------- ----------- ----------- Total Increase in Net Assets 160,599,948 63,428,161 85,305,684 3,724,170 2,104,892 6,037,041 ----------- ----------- ----------- ----------- ----------- ----------- DECREASES IN NET ASSETS Interest Expense 14,883,746 14,883,746 - - - - Allocation of Shares 29,209,543 29,209,543 - - - - Distribution of Benefits 25,675,603 153,764 24,503,416 134,899 319,688 563,836 Company Contributions Forfeited 135,408 - 135,408 - - - Participant Loan Trustee Expense 84,410 84,410 - - - - ----------- ----------- ----------- ----------- ----------- ----------- Total Decrease in Net Assets 69,988,710 44,331,463 24,638,824 134,899 319,688 563,836 ----------- ----------- ----------- ----------- ----------- ----------- INCREASE IN NET ASSETS 90,611,238 19,096,698 60,666,860 3,589,271 1,785,204 5,473,205 NET TRANSFERS AMONG INVESTMENT OPTIONS - - (782,408) 55,568 (214,187) 941,027 NET ASSETS - DECEMBER 30, 1992 470,768,119 71,510,809 371,100,120 6,936,290 8,957,682 12,263,218 ----------- ----------- ----------- ----------- ----------- ----------- NET ASSETS - DECEMBER 30, 1993 $561,379,357 $90,607,507 $430,984,572 $10,581,129 $10,528,699 $18,677,450 =========== =========== =========== =========== =========== =========== See Notes to Financial Statements.
STOCK PURCHASE-SAVINGS PLAN OF CAROLINA POWER & LIGHT COMPANY Statement of Net Assets Available for Benefits December 30, 1992 ------------------------------------------------------------ PARTICIPANTS' EQUITY ------------------------------------------------------------ EQUITY CAROLINA POWER U.S. FIXED FIDELITY UNALLOCATED & LIGHT COMPANY SAVINGS INVESTMENT EQUITY- TOTAL PLAN TO PARTICIPANTS COMMON STOCK BONDS CONTRACT INCOME FUND ---------- --------------- ------------ ------- -------- ----------- ASSETS Investments: Carolina Power & Light Company Common Stock $667,414,862 $306,771,742 $360,643,120 $ - $ - $ - U. S. Savings Bonds 6,916,087 - - 6,916,087 - - Fidelity Equity - Income Fund 12,263,218 - - - - 12,263,218 Fixed Investment Contracts 8,919,680 - - - 8,919,680 - Participants' Loans Receivable 18,080,254 18,080,254 - - - - ----------- ----------- ----------- ----------- ----------- ----------- Total Investments 713,594,101 324,851,996 360,643,120 6,916,087 8,919,680 12,263,218 Dividends and Interest Receivable 9,832,733 4,502,072 5,292,659 - 38,002 - Incentive Contribution Receivable 5,164,297 - 5,164,297 - - - Cash 20,271 24 44 20,203 - - ----------- ----------- ----------- ----------- ----------- ----------- Total Assets 728,611,402 329,354,092 371,100,120 6,936,290 8,957,682 12,263,218 ----------- ----------- ----------- ----------- ----------- ----------- LIABILITIES ESOP Loan Payable 237,355,832 237,355,832 - - - - Participants' Loans Payable 18,080,254 18,080,254 - - - - Interest Payable - ESOP Loan 2,407,197 2,407,197 - - - - ----------- ----------- ----------- ----------- ----------- ----------- Total Liabilities 257,843,283 257,843,283 - - - - ----------- ----------- ----------- ----------- ----------- ----------- NET ASSETS AVAILABLE FOR BENEFITS $470,768,119 $71,510,809 $371,100,120 $6,936,290 $8,957,682 $12,263,218 =========== =========== =========== =========== =========== =========== See Notes to Financial Statements.
STOCK PURCHASE-SAVINGS PLAN OF CAROLINA POWER & LIGHT COMPANY Statement of Changes in Net Assets Available for Benefits For the Year Ended December 30, 1992 ---------------------------------------------------------------- PARTICIPANTS' EQUITY ---------------------------------------------------------------- EQUITY CAROLINA POWER U.S. FIXED FIDELITY UNALLOCATED & LIGHT COMPANY SAVINGS INVESTMENT EQUITY- TOTAL PLAN TO PARTICIPANTS COMMON STOCK BONDS CONTRACTS INCOME FUND ---------- --------------- ------------ ------- --------- ----------- INCREASES IN NET ASSETS Investment Income: Dividends $38,289,132 $17,947,958 $19,937,298 $ - $ - $403,876 Net Appreciation in Fair Value 31,210,081 12,673,334 17,461,012 - - 1,075,735 Interest 423,445 - - - 423,445 - Contributions: Employer 40,656,708 27,289,187 13,367,521 - - - Participants 19,581,061 - 14,254,116 855,057 1,912,501 2,559,387 ----------- ----------- ----------- ----------- ----------- ----------- Total Increase in Net Assets 130,160,427 57,910,479 65,019,947 855,057 2,335,946 4,038,998 ----------- ----------- ----------- ----------- ----------- ----------- DECREASES IN NET ASSETS Interest Expense 15,321,732 15,321,732 - - - - Allocation of Shares 27,884,360 27,884,360 - - - - Distribution of Benefits 20,708,901 - 19,233,108 227,398 892,731 355,664 Company Contributions Forfeited 76,752 - 76,752 - - - ----------- ----------- ----------- ----------- ----------- ----------- Total Decrease in Net Assets 63,991,745 43,206,092 19,309,860 227,398 892,731 355,664 ----------- ----------- ----------- ----------- ----------- ----------- INCREASE IN NET ASSETS 66,168,682 14,704,387 45,710,087 627,659 1,443,215 3,683,334 NET TRANSFERS AMONG INVESTMENT OPTIONS - - (828,556) 63,969 221,816 542,771 NET ASSETS - DECEMBER 30, 1991 404,599,437 56,806,422 326,218,589 6,244,662 7,292,651 8,037,113 ----------- ----------- ----------- ----------- ----------- ----------- NET ASSETS - DECEMBER 30, 1992 $470,768,119 $71,510,809 $371,100,120 $6,936,290 $8,957,682 $12,263,218 =========== =========== =========== =========== =========== =========== See Notes to Financial Statements.
STOCK PURCHASE-SAVINGS PLAN OF CAROLINA POWER & LIGHT COMPANY Notes to Financial Statements Years Ended December 30, 1993 and 1992 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Stock Purchase-Savings Plan's (the "Plan") investment in the common stock of Carolina Power & Light Company (the "Company") and in the Fidelity Equity-Income Fund are carried at fair value determined by quoted prices in an active market. The investment in the Fixed Income Fund, formerly the Fixed Investment Contract fund (see Note 3), is carried at cost plus accrued interest, which approximates fair value. In 1993, the Plan began recording U.S. Savings Bonds at cost plus accrued interest, which approximates fair value. Prior to 1993, the investment in U.S. Savings Bonds was carried at cost. This change increased the Plan's net assets by approximately $3.0 million and is reflected in 1993 interest income on the Statement of Changes in Net Assets Available for Benefits. Dividends, interest and other income are accrued as earned, and expenses are accrued as incurred. Certain amounts for 1992 have been reclassified to conform to the 1993 presentation. The Company pays the expenses incurred by the Trustee (Wachovia Bank of North Carolina, N.A.) and William M. Mercer, Inc., a third-party administrator, in the administration of the Plan, with the exception of expenses related to loans to participants, and provides personnel and facilities for the Plan's accounting and other activities at no cost to the Plan (see Note 4). 2. DESCRIPTION OF THE PLAN General Information Regarding the Plan - - -------------------------------------- The purpose of the Plan, which became effective July 1, 1961, and was last amended effective December 31, 1992, is to encourage systematic savings by employees and to provide employees with a convenient method of acquiring an equity interest in the Company and other diverse investments. Participation in the Plan - - -------------------------- Generally, all full-time employees of the Company who are at least 18 years of age are eligible to participate in the Plan on their first day of employment. Certain part-time employees are also eligible. If employees wish to participate in the Plan, they must elect to do so and must specify their level of savings and how their savings should be allocated among the Plan's investment alternatives. Retired participants may retain investments in the Plan but may not continue to make contributions to the Plan. Employee Contributions Under the Plan - - ------------------------------------- Each participating employee may authorize the Company to contribute to the Plan 2%, 4% or 6% of the employee's before-tax eligible earnings (the "Deferred Contribution"). The contribution reduces, in like amount, the employee's earnings subject to income tax for that year. Employees who have eligible earnings of less than a specified amount ($64,245 for 1993 and $62,345 for 1992) and who contribute 6% of eligible earnings, may elect to make additional contributions to the Plan on a before-tax basis of 2%, 4% or 6%. An employee's total before-tax contributions could not be greater than $8,994 for 1993 and $8,728 for 1992. An employee can also elect to contribute 2%, 4%, 6%, 8%, 10% or 12% of the employee's after-tax eligible earnings to the Plan (the "Additional Savings"). Company Contributions Under the Plan - - ------------------------------------ At the time employee contributions are made, the Company contributes to the Plan an amount equal to 50% of each employee's Deferred Contribution. All Company contributions and any earnings on securities purchased with these contributions are invested in common stock of the Company. The Plan has an incentive feature which provides for discretionary Company contributions to be made to the Plan on behalf of each eligible employee for any Plan year in an amount to be determined by the Board of Directors. Such Company contributions, if any, are made in an amount up to a maximum of 50% of the Deferred Contribution for each employee if certain corporate goals established annually by the Board of Directors are met. All employees eligible to participate in the Plan are eligible for the discretionary Company contributions. Those eligible employees who do not contribute to the Plan are, for the purpose of determining the discretionary contributions, assumed to be contributing 2% of eligible earnings. The Company made discretionary contributions of approximately $6.1 million and approximately $5.2 million for the Plan years ended December 30, 1993 and 1992, respectively. For participants other than those leaving the Company, Company contributions are not considered matured, and cannot be distributed, until the end of the second year after the Plan year for which such Company contributions were made. Employee Stock Ownership Plan - - ----------------------------- In 1989, the Plan was restated as an employee stock ownership plan. This permits the Committee which administers the Plan to direct the Trustee to enter into acquisition loans ("ESOP Loans") for the purpose of acquiring Company common stock for the benefit of Plan participants. Common stock acquired with the proceeds of an ESOP Loan is held by the Trustee in a suspense account ("ESOP Stock Suspense Account"). Such common stock is released from the ESOP Stock Suspense Account and made available for allocation to the accounts of participants as the ESOP Loan is repaid as specified by provisions of the Internal Revenue Code. Such allocations are used to meet Company share needs related to participant contributions, Company 50% matching contributions, incentive contributions and/or reinvested dividends. ESOP Loan repayments are made from (i) cash dividends on common stock held in the ESOP Stock Suspense Account or cash dividends on common stock allocated to the accounts of employee participants, (ii) the proceeds from the sale of common stock held in the ESOP Stock Suspense Account, if any, and (iii) Company contributions, if any. These contributions will be made to the Plan in an amount which, when added to the value of common stock released from the ESOP Stock Suspense Account and allocated to participants' accounts, will equal the sum of (i) cash dividends used to repay an ESOP Loan, (ii) amounts allocated to participants' accounts and attributable to Deferred Contributions and Additional Savings and (iii) amounts, if any, necessary to satisfy restoration of forfeitures upon reemployment. In October 1989, the Trustee purchased 13,636,362 shares of common stock (as restated for the two-for-one stock split in February 1993) from the Company for an aggregate purchase price of approximately $300 million. All but $1,000 of the purchase price was financed by a short-term ESOP Loan from the Company. In January 1990, the short-term ESOP Loan was refinanced with a long-term ESOP Loan, bearing a 6% interest rate, from the Company in the amount of $300,512,482. Prepayment without penalty is allowed. Excluding the effects of any future prepayments, required payments, including interest, are $19,865,293 for each of the years 1994 through 1998 and $253,888,077 from 1999 through 2011. The ESOP Loan is secured by the ESOP Stock Suspense Account shares in the Plan, which totaled 10,033,003 shares at December 30, 1993. During the 1993 Plan year, 911,964 ESOP shares were released from the ESOP Stock Suspense Account and allocated to participants. Also during each quarter of 1993, the Company made a qualified ESOP Loan of approximately $4.5 million to the Plan. Each loan was repaid within the quarter. Investment of Funds - - ------------------- At the election of the participating employee, contributions authorized by the employee and any earnings on the securities purchased with these contributions are invested in the investment alternatives described in Note 3. Employee contributions to the Plan can be allocated to one or more of the investment options in increments of 5%; however, a minimum of 25% of Deferred Contributions must be invested in Company common stock. This election is made at the time the employee begins to participate in the Plan and may be changed once per month. A participant may move among the options for investments accumulated after 1988, subject to certain limitations. Investments in U. S. Savings Bonds, however, cannot be moved. All Company contributions and any dividends on stock purchased with Company contributions will be invested in common stock of the Company. For employees age 55 and older who have participated in the Plan for at least 10 years, the Company offers diversification of a portion of a participant's accumulated investment in Company common stock acquired after 1986. Qualified participants can elect annually, for a maximum of six years, to transfer to one or more of the remaining investment alternatives up to 25% (50% in the final year of election) of 1) Company common stock acquired by the participant, 2) Company matching contributions and 3) dividends on Company common stock accrued after 1986. At retirement, all contributions made by the participant in Company common stock may be diversified. Retirement, Death, or Termination of Employment - - ----------------------------------------------- Participants with five or more years of service are vested with respect to all Company contributions. Participants leaving the employ of the Company with less than five years of service forfeit unmatured Company contributions. In the case of an employee's death, retirement or termination of employment with at least five years of service, all employee and Company contributions, including those otherwise unmatured, become payable upon request by the employee, the employee's estate or other appropriate recipients. Forfeited contributions are used by the Plan to reduce contributions otherwise required from the Company. Withdrawals - - ----------- Participants may withdraw, at times and in minimum amounts specified by the Plan, any or all securities from the Plan purchased with matured Company contributions as well as uninvested cash attributable to such contributions. A participant who has reached age 59 1/2 may withdraw any or all contributions made by the participant and any or all matured Company contributions. At times and in amounts specified by the Plan, a participant may withdraw any or all securities and cash related to Additional Savings. The Plan also provides for withdrawal of employee contributions prior to age 59 1/2 upon furnishing proof of financial hardship satisfactory to the Committee which administers the Plan. Federal Income Taxes - - -------------------- The Internal Revenue Service has issued to the Company a favorable determination letter stating that the Plan, as amended effective December 31, 1992, meets the requirements of Sections 401(a), 401(k) and 4975(e)(7) of the Internal Revenue Code (Code). In addition, the Company believes that the Plan is currently being operated in compliance with the applicable requirements of the Code. Therefore, the Trust established under the Plan continues to be exempt from federal income taxes under Section 501(a) of the Code. As such, Company contributions paid to the Trust under the Plan will be allowable federal income tax deductions by the Company subject to the conditions and limitations of Section 404 of the Code. Termination of the Plan - - ----------------------- The Company has reserved the right to amend, modify, suspend or terminate the Plan at any time, except that no such action will have a retroactive effect and none of the assets of the Plan will revert to the Company or be used for any purpose other than the exclusive benefit of the participating employees, provided that, in the event of Plan termination, shares of Company common stock not allocated to participants' accounts may be sold to repay the ESOP Loans. In the event of termination of the Plan, all contributions of the participants and of the Company through the date of termination will be vested. 3. INVESTMENTS Company Common Stock - - -------------------- The price at which original issue common stock is deemed to have been acquired under the Plan is the closing price per share quoted on the composite tape as reported in The Wall Street Journal on the last trading day preceding the applicable payroll or dividend payment date. Shares may be purchased on the open market. The price at which open market common stock is deemed to have been acquired under the Plan is the weighted average price of all shares so purchased during the Investment Period as defined in the Plan. Shares may also be released from the ESOP Stock Suspense Account (see Note 2). The price at which such released shares are allocated to Plan participants is determined in the same manner as described above for original issue common stock. U.S. Government Securities - - -------------------------- Funds invested in U. S. Government Securities are currently being invested in Series EE Savings Bonds. Series EE Savings Bonds held for at least five years earn a variable rate of interest, established at six-month intervals, equal to 85% of the average market rate of five-year U.S. Treasury marketable securities, but in no event less than 4% per annum. Series EE Savings Bonds held for less than five years earn interest on a fixed graduated scale, based upon the length of time held. If Series EE Savings Bonds become unavailable or if, in the opinion of the Trustee, such bonds become inappropriate as investments, the funds will be invested in other U.S. Government Securities. Fixed Income Fund - - ----------------- Beginning in 1993, the Company changed the Fixed Investment Contract investment option to a Fixed Income Fund (FIF) option, and accumulated balances were transferred to the FIF. Contributions to the FIF are invested in the IDS (Investment Diversified Services) Trust Income Fund, which includes a mix of investment contracts, primarily with high quality insurance companies, along with other short-term investments. The FIF's objectives are to preserve principal and income while maximizing current income by investing in credit-worthy investment products and by maintaining a well-diversified portfolio. Fidelity Equity-Income Fund - - --------------------------- Funds invested in the Fidelity Equity-Income mutual fund ("Equity-Income Fund") are pooled and used primarily to purchase a variety of income-producing common or preferred stocks, as well as bonds or securities which may be convertible into common stock, and other similar types of investments. Normally, at least 80% of the Equity-Income Fund's assets will be invested in such securities. The objective of the Equity-Income Fund is to produce current income while taking into account the potential for long-term growth through capital appreciation. Income earned on the Equity-Income Fund is reinvested in additional fund shares. Fidelity Balanced Fund - - ---------------------- Beginning in January 1994, the Plan is offering an additional investment option to participants. The Fidelity Balanced Fund (Balanced Fund) consists of high-yielding securities, including foreign and domestic stocks and bonds. Also, the Balanced Fund diversifies across a variety of industries. At least 25% of the Balanced Fund's total holdings will always consist of fixed-income securities. The objective of the Balanced Fund is to provide as much income as possible while preserving capital. Income earned on the Balanced Fund is reinvested in additional fund shares. 4. LOANS TO PARTICIPANTS The Plan allows participants to borrow an amount not to exceed the lesser of $50,000 or 50% of their vested account balances. The Company has obtained permission to act as, and is acting as, the guarantor of a bank line of credit used to make these loans to participants. Each loan is collateralized by the individual participant's equity. At December 30, 1993 and 1992, the Trustee had recorded approximately $22.8 million and $18.1 million, respectively, of receivables for loans to participants. The net interest income to the Plan from loans to participants is used to pay Trustee expenses related to participants' loans. Any remaining proceeds are added to the previously described discretionary Company contribution and allocated to all participants' accounts. Such allocations for the years ended December 30, 1993 and 1992 were approximately $154,000 and $115,000, respectively.
STOCK PURCHASE-SAVINGS PLAN OF CAROLINA POWER & LIGHT COMPANY Item 27a - Schedule of Assets Held for Investment Purposes As of December 30, 1993 Identity of Issue Description of Investment Cost Value Current Value - - ------------------------------ -------------------------- --------------- ------------- Carolina Power & Light Company Common Stock, no par or $ 504,319,329 $ 723,774,103* stated value, 23,827,954 shares United States Savings Bonds Series EE, various interest 7,582,413 10,563,163 rates and maturities Fidelity Equity-Income Fund Mutual Fund, 551,282 shares 15,255,718 18,677,450 IDS Trust Income Fund Fixed Income Fund 10,474,317 10,474,317 Participants' Loans Receivable Loans to plan participants 22,781,351 22,781,351* --------------- ------------- Total $ 560,413,128 $ 786,270,384 =============== ============= * Party-in-Interest
STOCK PURCHASE-SAVINGS PLAN OF CAROLINA POWER & LIGHT COMPANY Item 27d - Schedule of Reportable Transactions For the Year Ended December 30, 1993 Expenses Current Value on Identity of Party/Description of Asset Purchase Price Selling Price Incurred Cost Value Transaction Date Gain/Loss - - -------------------------------------- ------------- ------------- -------- ---------- ---------------- --------- Carolina Power & Light Company common stock: 74 Purchases $24,596,762 $24,596,762 $24,596,762 71 Sales $26,730,661 $131 $16,691,325 $26,730,661 $10,039,204 ---------- 145 Transactions $51,327,423 ========== Participants' Loans Receivable: 27 Purchases $14,709,600 $14,709,600 $14,709,600 11 Sales $9,703,671 $9,703,671 $9,703,671 ---------- 38 Transactions $24,413,271 ==========
SIGNATURES The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the Stock Purchase-Savings Plan Committee has duly caused this Annual Report to be signed on its behalf by the undersigned hereunto duly authorized. STOCK PURCHASE-SAVINGS PLAN OF CAROLINA POWER & LIGHT COMPANY By: Charles D. Barham, Jr., Chairman Stock Purchase-Savings Plan Committee Date: June 24, 1994 _____________ EXHIBITS INDEX Exhibit Number ______________ Exhibit No. 23 Consent of Deloitte & Touche EX-23 2 EXHIBIT 23 - INDEPENDENT AUDITORS' CONSENT Exhibit No. 23 INDEPENDENT AUDITORS' CONSENT _____________________________ We consent to the incorporation by reference in Registration Statement No. 33-33520 on Form S-8 of Carolina Power & Light Company, of our report dated June 17, 1994, appearing in this Annual Report on Form 11-K of the Stock Purchase-Savings Plan of Carolina Power & Light Company for the year ended December 30, 1993. \s\ DELOITTE & TOUCHE Raleigh, North Carolina June 24, 1994 -----END PRIVACY-ENHANCED MESSAGE-----