-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PMuP3sU4gULAmA6NTF6NpE/DrL1vO0S17dQRJwO3koKuXACB8nGZPLaIsgf4bEn2 LZhoOl8mW/JfDi8CS79A5w== 0000912057-97-022465.txt : 19970701 0000912057-97-022465.hdr.sgml : 19970701 ACCESSION NUMBER: 0000912057-97-022465 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970630 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: HBO & CO CENTRAL INDEX KEY: 0000310377 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 370986839 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-09900 FILM NUMBER: 97633160 BUSINESS ADDRESS: STREET 1: 301 PERIMETER CTR N CITY: ATLANTA STATE: GA ZIP: 30346 BUSINESS PHONE: 77036000 MAIL ADDRESS: STREET 1: 301 PERIMETER CTR N CITY: ATLANTA STATE: GA ZIP: 30346 11-K 1 FORM 11-K 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 For the fiscal year ended December 31, 1996 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number 33-39034 A. Full title of the plan and address of the plan, if different from that of the issuer named below: HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: HBO & Company 301 Perimeter Center North Atlanta, Georgia 30346 (770) 393-6000 SNYDER, CAMP, STEWART & CO., LLP CERTIFIED PUBLIC ACCOUNTANTS 3850 HOLCOMB BRIDGE ROAD SUITE 210 NORCROSS, GEORGIA 30092 (770) 263-9666 TELECOPIER (770) 441-1880 INDEPENDENT AUDITORS' REPORT Administrative Committee HBO & Company Profit Sharing and Savings Plan We have audited the accompanying statements of net assets available for benefits of HBO & Company Profit Sharing and Savings Plan as of December 31, 1996 and 1995, 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, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of HBO & Company Profit Sharing and Savings Plan at December 31, 1996 and 1995, and the changes in net assets available for benefits for the years then ended, in conformity with 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 schedules 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 Securities and Exchange Commission and the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental 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 in relation to the basic financial statements taken as a whole. /s/SNYDER CAMP STEWART & CO LLP SNYDER, CAMP, STEWART & CO., LLP Atlanta, Georgia May 23, 1997 HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN Statements of Net Assets Available for Benefits December 31, 1996 and 1995
1996 1995 -------------- ------------- Assets: Investments, at fair value: HBO & Company Common Stock Fund............................. $ 37,178,326 $ 20,386,601 Fidelity Magellan Fund...................................... 23,326,930 22,325,414 Fidelity Growth and Income Fund............................. 22,435,878 15,955,736 Fidelity Retirement Money Market Fund....................... 6,630,055 6,044,568 Fidelity Asset Manager...................................... 4,065,764 3,173,483 Fidelity Managed Income Fund................................ 1,714,963 1,400,057 Fidelity Intermediate Bond Fund............................. 1,744,475 1,346,381 Fidelity International Growth and Income Fund............... 1,545,592 461,479 Fidelity Blue Chip Growth Fund.............................. 5,440,319 2,563,562 Fidelity Equity Income II Fund.............................. 3,723,426 1,255,847 -------------- ------------- Total investments......................................... 107,805,728 74,913,128 Contributions receivable from employer....................... 331,097 278,575 Contributions receivable from participants................... 802,439 1,159,402 Loans receivable from participants........................... 1,937,362 1,302,830 Accrued investment income.................................... 12,523 10,642 -------------- ------------- Total assets.............................................. 110,889,149 77,664,577 Liabilities................................................... -- -- -------------- ------------- Net assets available for benefits............................. $ 110,889,149 $ 77,664,577 -------------- ------------- -------------- -------------
See accompanying notes to financial statements. HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN Statements of Changes in Net Assets Available for Benefits For the Years Ended December 31, 1996 and 1995
1996 1995 -------------- ------------- Additions to net assets attributed to: Investment income............................................ $ 6,348,812 $ 2,808,837 Unrealized appreciation in fair value of investments......... 9,395,315 14,837,997 Realized gain on sale of investments......................... 4,043,165 2,651,602 -------------- ------------- Net increase from investment activities................... 19,787,292 20,298,436 Contributions: Employer.................................................... 4,009,263 3,085,933 Participants................................................ 16,639,795 18,075,829 Interest income on loans to participants..................... 70,910 38,051 -------------- ------------- Total additions........................................... 40,507,260 41,498,249 Deductions from net assets attributed to: Benefits paid directly to participants...................... (7,282,613) (5,839,112) Administrative fees......................................... (75) -- -------------- ------------- Net increase.............................................. 33,224,572 35,659,137 Net assets available for benefits: Beginning of year............................................ 77,664,577 42,005,440 -------------- ------------- End of year.................................................. $ 110,889,149 $ 77,664,577 -------------- ------------- -------------- -------------
See accompanying notes to financial statements. HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN Notes to Financial Statements December 31, 1996 and 1995 (1) DESCRIPTION OF PLAN The following description of HBO & Company Profit Sharing and Savings Plan (the "Plan") provides only general information. The Plan document should be referred to for a more complete description of the Plan's provisions. The Plan is a defined contribution plan which covers all employees of HBO & Company and HBO & Company of Georgia (jointly referred to herein as the "Company") who have completed six months of service (12 months for pre-1995 plan years) and have attained age 21 as of a Plan entry date. The Plan's entry dates are January 1, April 1, July 1, and October 1. Each eligible employee can elect to defer a percentage of pretax compensation, as defined, of from one to a maximum of fifteen percent and may contribute such amounts to the Plan. Such deferral elections must be made in whole percentages. If necessary, the salary deferral contributions allowed by a participant will be reduced by the Plan's Administrative Committee (see note 3) so that such contributions do not cause the Plan to be discriminatory or exceed the limitations of the Internal Revenue Code. The Company also may contribute to the Plan at the election of the Board of Directors through matching contributions and/or discretionary contributions. Each participant's share of Company discretionary contributions is related to the participant's compensation, as defined. Company contributions may not exceed the maximum allowable as a deduction as defined by the Internal Revenue Code. During 1996 and 1995, the Company contributed $.75 for each $1 contributed by employees; however, this Company matching contribution was only applicable for employee contributions of up to 4% of pretax compensation. No Company discretionary contributions were authorized for the years ended December 31, 1996 and 1995. Participants are 100% vested in their pretax compensation contributions and earnings thereon at all times. Company matching and discretionary contributions credited to a participant's account and earnings thereon vest on a graded basis. A participant becomes 20% vested in his/her Company account after one year of service and an additional 20% becomes vested in each of the following four years until a participant fully vests after five years of service (effective January 1, 1995). Prior to January 1, 1995, a participant became 20% vested in his/her Company account after three years of service and an additional 20% vested in each of the following four years until a participant fully vested after seven years of service. Further, a participant is automatically 100% vested without regard to years of service in the event of termination due to death, disability, or attainment of age 65. Allocation of Plan earnings/losses is based on a participant's account balance in the respective fund. (Continued) HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN Notes to Financial Statements, Continued December 31, 1996 and 1995 (1) DESCRIPTION OF PLAN, CONTINUED Forfeitures of terminated participants' nonvested accounts are allocated among the remaining participants in the Plan at the end of the Plan year as if the forfeitures are additional matching contributions, as designated by the Administrative Committee. At December 31, 1996, forfeited nonvested accounts amounted to $215,309. These accounts may be used to reduce future employer contributions. Participants have the option to direct the investment of their accounts between ten investment funds: the Fidelity Retirement Money Market Fund, the Fidelity Managed Income Fund, the Fidelity Intermediate Bond Fund, the Fidelity Growth and Income Fund, the Fidelity Magellan Fund, the Fidelity Asset Manager Fund, the Fidelity International Growth and Income Fund, the Fidelity Blue Chip Growth Fund, the Fidelity Equity Income II Fund and HBO & Company Common Stock Fund. 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. Loan terms range up to 5 years, except that loan terms for the purchase of a primary residence are at the discretion of the Administrative Committee. The loans are secured by the balance in the participant's account and bear interest at a rate determined by the Administrative Committee. Principal and interest is paid ratably through monthly payroll deductions. Upon termination, participants under age 65 with account balances totaling more than $3,500 may elect to (1) delay the distribution of his/her accounts or (2) receive his/her vested benefits generally in a lump sum distribution. The full value of benefits (regardless of amount) are payable upon normal or postponed retirement or to beneficiaries upon death of the participant. Participants with balances totaling less than $3,500 or on total or permanent disability receive a lump sum distribution of his/her vested benefits. Under a provision of the Plan, the Company, through actions of its Board of Directors, reserves the right to terminate the Plan. If the Plan is terminated, each participant shall become fully vested as of the termination date. (2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting records of the Plan are maintained on the accrual basis. HBO & Company Common Stock and investment funds held for investment by the Plan are stated at quoted market values from independent published sources. Loans receivable from participants are stated at cost which approximates fair value. The change in the difference between current value and the cost of the investments is reflected in the statement of changes in net assets available for benefits as unrealized appreciation (depreciation) in fair value of investments. (Continued) HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN Notes to Financial Statements, Continued December 31, 1996 and 1995 (2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Realized gain (loss) on sale of investments is the difference between the proceeds received and the average cost of investments sold. Benefits are recorded when paid. The amount of benefits approved for payment, but not disbursed, to participants who have withdrawn from the Plan at December 31, 1996 was $37,143. The preparation of financial statements in conformity with generally accepted accounting principles requires the Plan administrator to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from those estimates. (3) ADMINISTRATION The Company's Employee Benefits Administrative Committee (the "Administrative Committee") is the Plan administrator. Fidelity is the Trustee, with custodial responsibility for the Plan's assets. The Plan is liable for all administrative expenses not paid by the Company. At the direction of the Administrative Committee, the Plan's administrative expenses for 1996 and 1995 were paid by the Company. (4) INCOME TAX STATUS The Plan is intended to be qualified under the Internal Revenue Code (the "IRC"). A favorable ruling was obtained from the IRS as to the tax exempt status of the Plan in October, 1995. (5) TRANSACTIONS WITH PARTIES-IN-INTEREST During the year ended December 31, 1996, the Plan purchased 433,718 shares of the Common Stock of HBO & Company, the Plan sponsor, for $10,216,175, and sold 73,613 shares of the Common Stock of HBO & Company for $5,067,732 in accordance with the terms of the Plan. During the year ended December 31, 1995, the Plan purchased 87,631 shares of the Common Stock of HBO & Company, the Plan sponsor, for $4,802,545, and sold 63,962 shares of the Common Stock of HBO & Company for $2,869,992 in accordance with the terms of the Plan. (Continued) HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN Notes to Financial Statements, Continued December 31, 1996 and 1995 (6) RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500 The following is a reconciliation of net assets available for benefits per the financial statements at December 31, 1996 and 1995 to Form 5500:
1996 1995 -------------- ------------- Net assets available for benefits per the financial statements.................................................. $ 110,889,149 $ 77,664,577 Amounts allocated to withdrawing participants................. (37,143) (2,325) -------------- ------------- Net assets available for benefits per the Form 5500........... $ 110,852,006 $ 77,662,252 -------------- ------------- -------------- -------------
The following is a reconciliation of benefits paid to participants per the financial statements for the year ended December 31, 1996 to Form 5500: Benefits paid to participants per the financial statements.................... $ 7,282,613 Add: Amounts allocated to withdrawing participants at December 31, 1996.................................................................... 37,143 Less: Amounts allocated to withdrawing participants at December 31, 1995.................................................................... $ (2,325) ------------- Benefits paid to participants per Form 5500................................... $ 7,317,431 ------------- -------------
Amounts allocated to withdrawing participants are recorded on the Form 5500 for benefit claims that have been processed and approved for payment prior to December 31, but not yet paid as of that date. (7) INVESTMENT FUNDS The Plan provides for separate investment funds for participants as described in note 1 to the financial statements. The following pages summarize the net assets available for benefits and the changes in net assets available for benefits for each fund for the years ended December 31, 1996 and 1995. (Continued) HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN Net Assets Available for Benefits by Investment Program
Fidelity HBO & Fidelity Fidelity Fidelity Fidelity Fidelity Int'l Company Fidelity Growth & Retirement Asset Managed Intermediate Growth Common Magellan Income Money Mkt Manager Income Bond & Income Stock Fund Fund Fund Fund Fund Fund Fund ----------- ----------- ----------- ---------- ---------- ---------- ------------ ---------- December 31, 1996 - ----------------- Assets: Investments at fair value... $37,178,326 $23,326,930 $22,435,878 $6,630,055 $4,065,764 $1,714,963 $1,744,475 $1,545,592 Contributions receivable from employer company..... 78,415 68,507 70,083 20,020 16,249 7,510 7,502 9,718 Contributions receivable from participants......... 163,155 158,589 185,218 47,354 46,348 17,037 23,686 23,146 Loans receivable from participants.............. 252,247 407,180 375,431 550,217 190,808 84,842 83,991 (848) Accrued investment income... 12,523 -- -- -- -- -- -- -- ----------- ----------- ----------- ---------- ---------- ---------- ------------ ---------- Total assets............ 37,684,666 23,961,206 23,066,610 7,247,646 4,319,169 1,824,352 1,859,654 1,577,608 ----------- ----------- ----------- ---------- ---------- ---------- ------------ ---------- Liabilities................... -- -- -- -- -- -- -- -- ----------- ----------- ----------- ---------- ---------- ---------- ------------ ---------- Net assets available for benefits.................... $37,684,666 $23,961,206 $23,066,610 $7,247,646 $4,319,169 $1,824,352 $1,859,654 $1,577,608 ----------- ----------- ----------- ---------- ---------- ---------- ------------ ---------- ----------- ----------- ----------- ---------- ---------- ---------- ------------ ---------- Fidelity Fidelity Blue Chip Equity Growth Income II Fund Fund Total ---------- ---------- ------------ December 31, 1996 - ----------------- Assets: Investments at fair value... $5,440,319 $3,723,426 $107,805,728 Contributions receivable from employer company..... 30,963 22,130 331,097 Contributions receivable from participants......... 75,695 62,211 802,439 Loans receivable from participants.............. (9,528 ) 3,022 1,937,362 Accrued investment income... -- -- 12,523 ---------- ---------- ------------ Total assets............ 5,537,449 3,810,789 110,889,149 ---------- ---------- ------------ Liabilities................... -- -- -- ---------- ---------- ------------ Net assets available for benefits.................... $5,537,449 $3,810,789 $110,889,149 ---------- ---------- ------------ ---------- ---------- ------------
Fidelity HBO & Fidelity Fidelity Fidelity Fidelity Fidelity Int'L Company Fidelity Growth & Retirement Asset Managed Intermediate Growth Common Magellan Income Money Mkt Manager Income Bond & Income Stock Fund Fund Fund Fund Fund Fund Fund ----------- ----------- ----------- ---------- ---------- ---------- ------------ ---------- December 31, 1995 - ----------------- Assets: Investments at fair value... $20,386,601 $22,325,414 $15,955,736 $6,044,568 $3,173,483 $1,400,057 $1,346,381 $ 461,479 Contributions receivable from employer company..... 53,075 80,928 54,530 21,582 19,536 8,455 10,168 3,676 Contributions receivable from participants......... 129,305 298,919 210,688 162,396 83,503 21,111 52,055 45,015 Loans receivable from participants.............. 123,605 211,690 202,271 621,060 102,667 23,105 29,632 856 Accrued investment income... 10,642 -- -- -- -- -- -- -- ----------- ----------- ----------- ---------- ---------- ---------- ------------ ---------- Total assets............ 20,703,228 22,916,951 16,423,225 6,849,606 3,379,189 1,452,728 1,438,236 511,026 Liabilities................... -- -- -- -- -- -- -- -- ----------- ----------- ----------- ---------- ---------- ---------- ------------ ---------- Net assets available for benefits.................... $20,703,228 $22,916,951 $16,423,225 $6,849,606 $3,379,189 $1,452,728 $1,438,236 $ 511,026 ----------- ----------- ----------- ---------- ---------- ---------- ------------ ---------- ----------- ----------- ----------- ---------- ---------- ---------- ------------ ---------- Fidelity Fidelity Blue Chip Equity Growth Income II Fund Fund Total ---------- ---------- ------------ December 31, 1995 - ----------------- Assets: Investments at fair value... $2,563,562 $1,255,847 $ 74,913,128 Contributions receivable from employer company..... 18,434 8,191 278,575 Contributions receivable from participants......... 81,035 75,375 1,159,402 Loans receivable from participants.............. (9,856 ) (2,200 ) 1,302,830 Accrued investment income... -- -- 10,642 ---------- ---------- ------------ Total assets............ 2,653,175 1,337,213 77,664,577 Liabilities................... -- -- -- ---------- ---------- ------------ Net assets available for benefits.................... $2,653,175 $1,337,213 77,664,577 ---------- ---------- ------------ ---------- ---------- ------------
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN Changes in Net Assets Available for Benefits by Investment Program For the Year Ended December 31, 1996
HBO & Fidelity Fidelity Fidelity Fidelity Fidelity Company Fidelity Growth & Retirement Asset Managed Intermediate Common Magellan Income Money Mkt Manager Income Bond Stock Fund Fund Fund Fund Fund Fund ------------ ----------- ----------- ---------- ---------- ---------- ------------ Additions to net assets attributed to: Investment income................ $ 66,609 $ 3,771,860 $ 1,059,501 $ 335,819 $ 309,190 $ 88,638 $ 109,760 Unrealized appreciation (depreciation) in fair value of investments.................... 8,607,960 (1,562,119) 1,835,419 -- 34,814 -- (41,248) Realized gain (loss) on sale of investments.................... 3,035,321 281,560 606,782 -- 84,485 -- (6,275) ------------ ----------- ----------- ---------- ---------- ---------- ------------ Net increase from investment activities..................... 11,709,890 2,491,301 3,501,702 335,819 428,489 88,638 62,237 Contributions: Employer....................... 927,855 1,075,583 857,839 92,490 240,557 104,062 126,431 Participants................... 3,142,699 3,997,950 3,334,740 1,077,317 1,000,904 482,826 550,702 Interest income on loans to participants................... 11,497 13,422 15,267 13,135 3,719 2,192 1,925 ------------ ----------- ----------- ---------- ---------- ---------- ------------ Total additions.............. 15,791,941 7,578,256 7,709,548 1,518,761 1,673,669 677,718 741,295 Deductions from net assets attributed to: Benefits expense................. (2,243,845) (1,687,036) (1,528,871) (626,512 ) (334,009) (177,363) (142,124) Administrative expense........... -- (75) -- -- -- -- -- Interfund transfers.............. 3,433,342 (4,846,890) 462,708 (494,209 ) (399,680) (128,731) (177,753) ------------ ----------- ----------- ---------- ---------- ---------- ------------ Net increase................. 16,981,438 1,044,255 6,643,385 398,040 939,980 371,624 421,418 Net assets available for benefits: Beginning of year................ 20,703,228 22,916,951 16,423,225 6,849,606 3,379,189 1,452,728 1,438,236 ------------ ----------- ----------- ---------- ---------- ---------- ------------ End of year...................... $37,684,666 $23,961,206 $23,066,610 $7,247,646 $4,319,169 $1,824,352 $1,859,654 ------------ ----------- ----------- ---------- ---------- ---------- ------------ ------------ ----------- ----------- ---------- ---------- ---------- ------------ Fidelity Int'l Fidelity Fidelity Growth Blue Chip Equity & Income Growth Income II Fund Fund Fund Total ---------- ---------- ---------- ------------ Additions to net assets attributed to: Investment income................ $ 51,435 $ 335,802 $ 220,198 $ 6,348,812 Unrealized appreciation (depreciation) in fair value of investments.................... 81,145 278,578 160,766 9,395,315 Realized gain (loss) on sale of investments.................... 2,911 (818) 39,199 4,043,165 ---------- ---------- ---------- ------------ Net increase from investment activities..................... 135,491 613,562 420,163 19,787,292 Contributions: Employer....................... 80,249 308,749 195,448 4,009,263 Participants................... 410,458 1,627,283 1,014,916 16,639,795 Interest income on loans to participants................... 1,533 5,689 2,531 70,910 ---------- ---------- ---------- ------------ Total additions.............. 627,731 2,555,283 1,633,058 40,507,260 Deductions from net assets attributed to: Benefits expense................. (54,485) (253,820) (234,548) (7,282,613) Administrative expense........... -- -- -- (75) Interfund transfers.............. 493,336 582,811 1,075,066 -- ---------- ---------- ---------- ------------ Net increase................. 1,066,582 2,884,274 2,473,576 33,224,572 Net assets available for benefits: Beginning of year................ 511,026 2,653,175 1,337,213 77,664,577 ---------- ---------- ---------- ------------ End of year...................... $1,577,608 $5,537,449 $3,810,789 $110,889,149 ---------- ---------- ---------- ------------ ---------- ---------- ---------- ------------
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN Changes in Net Assets Available for Benefits by Investment Program For the Year Ended December 31, 1995
HBO & Fidelity Fidelity Fidelity Fidelity Fidelity Company Fidelity Growth & Retirement Asset Managed Intermediate Common Magellan Income Money Mkt Manager Income Bond Stock Fund Fund Fund Fund Fund Fund ------------ ----------- ----------- ---------- ---------- ---------- ------------ Additions to net assets attributed to: Investment income........................... $ 48,718 $ 1,289,951 $ 750,858 $ 327,789 $ 84,052 $ 58,599 $ 60,657 Unrealized appreciation (depreciation) in fair value of investments.................... 8,252,485 3,471,673 2,786,815 -- 335,567 -- 56,102 Realized gain (loss) on sale of investments.................... 1,869,470 490,953 279,537 -- 13,244 -- (2,603) ------------ ----------- ----------- ---------- ---------- ---------- ------------ Net increase from investment activities..................... 10,170,673 5,252,577 3,817,210 327,789 432,863 58,599 114,156 Contributions: Employer....................... 563,223 1,023,591 739,073 119,640 277,152 96,667 118,702 Participants................... 2,112,637 4,681,095 3,593,794 2,220,439 1,213,113 705,686 714,269 Interest income on loans to participants................... 8,892 11,681 7,151 5,750 2,131 1,108 648 ------------ ----------- ----------- ---------- ---------- ---------- ------------ Total additions............... 12,855,425 10,968,944 8,157,228 2,673,618 1,925,259 862,060 947,775 Deductions from net assets attributed to: Benefits expense................. (1,027,905) (2,233,610) (1,229,326) (986,211) (232,528) (35,865) (59,185) Interfund transfers.............. 375,150 (87,884) (422,997) (451,871) (602,392) (66,622) (171,340) ------------ ----------- ----------- ---------- ---------- ---------- ------------ Net increase................. 12,202,670 8,647,450 6,504,905 1,235,536 1,090,339 759,573 717,250 Net assets available for benefits: Beginning of year................. 8,500,558 14,269,502 9,918,320 5,614,070 2,288,850 693,154 720,986 ------------ ----------- ----------- ---------- ---------- ---------- ------------ End of year...................... $20,703,228 $22,916,952 $16,423,225 $6,849,606 $3,379,189 $1,452,727 $1,438,236 ------------ ----------- ----------- ---------- ---------- ---------- ------------ ------------ ----------- ----------- ---------- ---------- ---------- ------------ Fidelity Int'l Fidelity Fidelity Growth Blue Chip Equity & Income Growth Income II Fund Fund Fund Total ---------- ---------- ---------- ------------ Additions to net assets attributed to: Investment income................ $ 14,316 $ 136,842 $ 37,055 $ 2,808,837 Unrealized appreciation (depreciation) in fair value of investments.................... (371) (98,529) 34,255 14,837,997 Realized gain (loss) on sale of investments.................... 73 (244) 1,172 2,651,602 ---------- ---------- ---------- ------------ Net increase from investment activities..................... 14,018 38,069 72,482 20,298,436 Contributions: Employer....................... 15,767 87,302 44,816 3,085,933 Participants................... 368,893 1,504,035 961,868 18,075,829 Interest income on loans to participants................... 64 555 71 38,051 ---------- ---------- ---------- ------------ Total additions.............. 398,742 1,629,961 1,079,237 41,498,249 Deductions from net assets attributed to: Benefits expense............... (6,922) (24,590) (2,970) (5,839,112) Interfund transfers............ 119,206 1,047,804 260,946 -- ---------- ---------- ---------- ------------ Net increase............... 511,026 2,653,175 1,337,213 35,659,137 Net assets available for benefits: Beginning of year.............. -- -- -- 42,005,440 ---------- ---------- ---------- ------------ End of year.................... $ 511,026 $2,653,175 $ 1,337,213 $77,664,577 ---------- ---------- ---------- ------------ ---------- ---------- ---------- ------------
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN Notes to Financial Statements, Continued December 31, 1996 and 1995 (8) INVESTMENTS During 1996 and 1995 the Plan's investments (including investments bought and sold as well as held during the year) appreciated (depreciated) in fair value as follows:
Net Appreciation (Depreciation) Fair Value in Fair Value at End During Year of Year ------------- -------------- Year ended December 31, 1996: Fair value as determined by quoted market price: HBO & Company Common Stock Fund............................... $11,643,281 $ 37,178,326 Fidelity Magellan Fund........................................ (1,280,559) 23,326,930 Fidelity Growth and Income Fund............................... 2,442,201 22,435,878 Fidelity Retirement Money Market Fund......................... -- 6,630,055 Fidelity Asset Manager Fund................................... 119,299 4,065,764 Fidelity Managed Income Fund.................................. -- 1,714,963 Fidelity Intermediate Bond Fund............................... (47,523) 1,744,475 Fidelity International Growth and Income Fund................. 84,056 1,545,592 Fidelity Blue Chip Growth Fund................................ 277,760 5,440,319 Fidelity Equity Income II Fund................................ 199,965 3,723,426 ------------- -------------- $13,438,480 $ 107,805,728 ------------- -------------- ------------- --------------
The current value of the HBO & Company Common Stock Fund, Fidelity Magellan Fund, Fidelity Growth and Income Fund, Fidelity Retirement Money Market Fund and Fidelity Blue Chip Growth Fund held for investment at December 31, 1996 was $37,178,326, $23,326,930, $22,435,878, $6,630,055 and $5,440,319, respectively, each of which represents an investment greater than 5% of the Plan's net assets. Year ended December 31, 1995:
Fair value as determined by quoted market price: HBO & Company Common Stock Fund.................... $10,121,955 $20,386,601 Fidelity Magellan Fund............................. 3,962,625 22,325,414 Fidelity Growth and Income Fund.................... 3,066,353 15,955,736 Fidelity Retirement Money Market Fund.............. -- 6,044,568 Fidelity Asset Manager Fund........................ 348,811 3,173,483 Fidelity Managed Income Fund....................... -- 1,400,057 Fidelity Intermediate Bond Fund.................... 53,499 1,346,381 Fidelity International Growth and Income Fund...... (298) 461,479 Fidelity Blue Chip Growth Fund..................... (98,773) 2,563,562 Fidelity Equity Income II Fund..................... 35,427 1,255,847 ---------- ---------- $17,489,599 $74,913,128 ---------- ---------- ---------- ----------
(Continued) HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN Notes to Financial Statements, Continued December 31, 1996 and 1995 (8) INVESTMENTS, CONTINUED The current value of the HBO & Company Common Stock Fund, Fidelity Magellan Fund, Fidelity Growth and Income Fund, and Fidelity Retirement Money Market Fund held for investment at December 31, 1995 was $20,386,601, $22,325,414, $15,955,736 and $6,044,568, respectively, each of which represents an investment greater than 5% of the Plan's net assets. The realized gain on the sale of investments during the years ended December 31, 1996 and 1995 was determined as follows:
1996 1995 ------------- ------------- Aggregate proceeds............................................. $ 23,607,827 $ 13,766,954 Aggregate cost................................................. (19,564,662) (11,115,352) ------------- ------------- Realized gain............................................... $ 4,043,165 $ 2,651,602 ------------- ------------- ------------- ------------- During 1996 and 1995, the balance of unrealized appreciation (depreciation) in the fair value of investments changed as follows: Balance, December 31, 1994..................................... $ 5,692,808 Current unrealized appreciation of investments, net of realized gains (losses).............................................. 14,837,997 ------------- Balance, December 31, 1995..................................... $ 20,530,805 Current unrealized appreciation of investments, net of realized gains (losses).............................................. 9,395,315 ------------- Balance, December 31, 1996..................................... $ 29,926,120 -------------- --------------
SUPPLEMENTARY INFORMATION HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN FEI # 37-0986839--Plan #001 Item 27a--Schedule of Assets Held for Investment Purposes
December 31, 1996 ----------------- (a) Identity of (b) Identity of Issue (c) Description (d) Cost (e) Current Value Party Involved ----------------- --------------------- --------------- -------------- ----------------- Fidelity Investments Shares - -------------------- ------ Fidelity........................ Magellan Fund 289,237 $ 20,812,030 $ 23,326,930 Fidelity........................ Growth & Income Fund 730,097 17,890,239 22,435,878 Fidelity........................ Retirement Money Market Fund 6,630,055 6,630,055 6,630,055 Fidelity........................ Asset Manager Fund 246,859 3,828,264 4,065,764 Fidelity........................ Managed Income Fund 1,714,963 1,714,963 1,714,963 Fidelity........................ Intermediate Bond Fund 173,063 1,766,871 1,744,475 Fidelity........................ International Growth & Income Fund 79,058 1,464,818 1,545,592 Fidelity........................ Blue Chip Growth Fund 166,422 5,260,270 5,440,319 Fidelity........................ Equity Income II Fund 156,776 3,528,406 3,723,426 -------------- ------------- 62,895,916 70,627,402 Company Stock Fund Shares - ------------------- ------ * HBO & Company................ Common Stock 626,161 14,983,691 37,178,326 Interest -------- Participant Loans............... Participant Loans 6-10% -- 1,937,362 - ----------------- --------------- ------------- Total investments held.......... $ 77,879,607 $ 109,743,090 ---------------- ------------- ---------------- -------------
December 31, 1995 ----------------- (a) Identity of (b) Identity of Issue (c) Description (d) Cost (e) Current Value Party Involved ----------------- --------------------- --------------- -------- ----------------- Fidelity Investments Shares - -------------------- ------ Fidelity......................... Magellan Fund 259,658 $ 18,248,395 $ 22,325,414 Fidelity......................... Growth & Income Fund 589,861 13,245,517 15,955,736 Fidelity......................... Retirement Money Market Fund 6,044,568 6,044,568 6,044,568 Fidelity......................... Asset Manager Fund 200,220 2,970,797 3,173,483 Fidelity......................... Managed Income Fund 1,400,057 1,400,057 1,400,057 Fidelity......................... Intermediate Bond Fund 129,335 1,327,528 1,346,381 Fidelity......................... International Growth & Income Fund 25,709 461,850 461,479 Fidelity......................... Blue Chip Growth Fund 83,314 2,662,092 2,563,562 Fidelity......................... Equity Income II Fund 58,602 1,221,592 1,255,847 -------------- ------------- 47,582,396 54,526,527 Company Stock Fund Shares - ------------------- ------ * HBO & Company.................. Common Stock 266,057 6,799,927 20,386,601 Interest -------- Participant Loans................ Participant Loans 6-10% -- 1,302,830 - ----------------- --------------- ---------------- Total investments held $ 54,382,323 $ 76,215,958 -------------- ---------------- * Party in interest. -------------- ----------------
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN FEI # 37-0986839--Plan #001 Item 27d--Schedule of Reportable Transactions Transactions or Series of Transactions in Excess of Five Percent of the Current Value of Plan Assets
Number of (a) Identity of (b) Description Number of Shares or (c) Purchase (d) Selling (g) Cost of Party Involved of Assets Transactions Units Price Price Assets -------------- ----------- ------------ ---------- -------- ------- ------- Category (iii)--A series of transactions in excess of 5% of plan assets: December 31, 1996 - ----------------- HBO & Company Common Stock Purchases 117 433,718 $10,216,175 $10,216,175 Sales 84 73,613 $5,067,732 2,032,411 Fidelity Magellan Purchases 217 126,174 9,873,435 9,873,435 Sales 179 96,596 7,591,360 7,309,800 Fidelity Growth & Income Fund Purchases 216 270,435 7,790,872 7,790,872 Sales 157 130,199 3,752,932 3,146,151 Fidelity Retirement Money Mkt Fund Purchases 183 2,866,332 2,866,332 2,866,332 Sales 147 2,280,845 2,280,845 2,280,845 Fidelity Blue Chip Growth Fund Purchases 180 111,501 3,495,527 3,495,527 Sales 101 28,393 896,530 897,348
(h) Current Value of Assets On Transaction (i) Net Date Gain (Loss) ------------- ----------- December 31, 1996 - ----------------- HBO & Company $10,216,175 5,067,732 $3,035,321 Fidelity 9,873,435 7,591,360 281,560 Fidelity 7,790,872 3,752,932 606,781 Fidelity 2,866,332 2,280,845 -- Fidelity 3,495,527 896,530 (818)
Number of (a) Identity of (b) Description Number of Shares or (c) Purchase (d) Selling (g) Cost of Party Involved of Assets Transactions Units Price Price Assets -------------- ----------- ------------ ---------- -------- ------- ------- Category (iii)--A series of transactions in excess of 5% of plan assets: December 31, 1995 - ----------------- HBO & Company Common Stock Purchases 116 87,631 $ 4,802,545 $ 4,802,545 Sales 86 63,962 $ 2,869,992 1,000,522 Fidelity Magellan Purchases 175 101,707 8,480,096 8,480,096 Sales 121 50,759 4,059,143 3,568,190 Fidelity Growth & Income Fund Purchases 185 249,072 6,048,742 6,048,742 Sales 127 115,966 2,792,320 2,512,783 Fidelity Retirement Money Mkt Fund Purchases 161 2,681,481 2,681,481 2,681,481 Sales 140 2,076,315 2,076,315 2,076,315 Fidelity Asset Manager Fund Purchases 152 115,677 1,717,364 1,717,364 Sales 119 67,563 996,306 983,062 Fidelity Blue Chip Growth Fund Purchases 102 86,627 2,767,888 2,767,888 Sales 27 3,313 105,553 105,797
(h) Current Value of Assets On Transaction (i) Net Date Gain (Loss) ------------- ----------- December 31, 1995 - ----------------- HBO & Company $ 4,802,545 2,869,992 $1,869,470 Fidelity 8,480,096 4,059,143 490,953 Fidelity 6,048,742 2,792,320 279,537 Fidelity 2,681,481 2,076,315 -- Fidelity 1,717,364 996,306 13,244 Fidelity 2,767,888 105,553 (244)
SIGNATURES __________ THE PLAN. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN By: /s/ Jay P. Gilbertson ----------------------------- Jay P. Gilbertson By: /s/ Michael L. Kappel ------------------------------ Michael L. Kappel By: /s/ E. Christine Rumsey ------------------------------ E. Christine Rumsey DATE:June 30, 1997 (Each Member of the Committee ------------- appointed under and pursuant to the HBO & Company Profit Sharing and Savings Plan) EXHIBIT INDEX EXHIBIT PAGE NUMBER DESCRIPTION NUMBER - ------- --------------------------------------------------- ------ 23 Consent of independent public accountants EX-23 2 EXH. 23 SNYDER, CAMP, STEWART & CO., LLP CERTIFIED PUBLIC ACCOUNTANTS 3850 HOLCOMB BRIDGE ROAD SUITE 210 NORCROSS, GEORGIA 30092 (770) 263-9666 TELECOPIER (770) 441-1880 CONSENT OF INDEPENDENT AUDITORS We consent to the incorporation by reference in the Registration Statement (Form S-8 No. 33-39034) pertaining to the HBO & Company Profit Sharing and Savings Plan of our report dated May 23, 1997, with respect to the financial statements and schedules of the HBO & Company Profit Sharing and Savings Plan included in this Annual Report (Form 11-K) for the year ended December 31, 1996. /S/SNYDER CAMP STEWART & CO LLP --------------------------------- SNYDER, CAMP, STEWART & CO., LLP Atlanta, Georgia June 23, 1997 -----END PRIVACY-ENHANCED MESSAGE-----