-----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, ZfLPIZvsJTh+SlcPfzmPgDNk8pgx4jyQpTvQjqka28KOlRNe/zCwNQYmOiCvwNX4 L22nPutszhNapg0ni6n+rA== 0000950123-94-001103.txt : 19940701 0000950123-94-001103.hdr.sgml : 19940701 ACCESSION NUMBER: 0000950123-94-001103 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19931231 FILED AS OF DATE: 19940629 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PARAMOUNT COMMUNICATIONS INC /DE/ CENTRAL INDEX KEY: 0000044482 STANDARD INDUSTRIAL CLASSIFICATION: 7812 IRS NUMBER: 741330475 STATE OF INCORPORATION: DE FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05404 FILM NUMBER: 94536559 BUSINESS ADDRESS: STREET 1: 15 COLUMBUS CIRCLE CITY: NEW YORK STATE: NY ZIP: 10023-7780 BUSINESS PHONE: 2123738000 MAIL ADDRESS: STREET 1: 15 COLUMBUS CIRCLE CITY: NEW YORK STATE: NY ZIP: 10023-7780 FORMER COMPANY: FORMER CONFORMED NAME: GULF & WESTERN INC /DE/ DATE OF NAME CHANGE: 19890606 FORMER COMPANY: FORMER CONFORMED NAME: GULF & WESTERN INDUSTRIES INC /DE/ DATE OF NAME CHANGE: 19860904 FORMER COMPANY: FORMER CONFORMED NAME: MICHIGAN BUMPER CORP DATE OF NAME CHANGE: 19660906 11-K 1 FORM 11-K FOR PRENTICE HALL COMPUTER PUBLISH. 1 ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549-1004 --------------------------- 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, 1993 Commission file number 1-5404 OR / / Transition Report Pursuant to Section 15(d) of the Securities Exchange Act of 1934 PRENTICE HALL COMPUTER PUBLISHING DIVISION RETIREMENT PLAN --------------------------------- (Full title of the plan) 11711 North College Avenue Carmel, Indiana 46032 -------------------------- (Address of the plan) PARAMOUNT COMMUNICATIONS INC. ----------------------------- (Name of issuer of the securities held pursuant to the plan) 15 Columbus Circle New York, New York 10023-7780 ------------------------------ (Address of principal executive offices) ================================================================================ 2 PRENTICE HALL COMPUTER PUBLISHING DIVISION RETIREMENT PLAN INDEX
Page ---- (a) Financial Statements Report of Independent Auditors................................................. F-2 Statement of Financial Condition -- December 31, 1993 and 1992................. F-3 - F-4 Statement of Income and Changes in Plan Equity -- Year Ended December 31, 1993 and 1992 and the Period From November 18, 1991 (inception) to December 31, 1991........................ F-5 - F-7 Notes to Financial Statements.................................................. F 8 - F-11 Schedules I -- Investments -- December 31, 1993.......................................... S-1 Schedules II and III have been omitted because the required information is shown in the financial statements. (b) Exhibits I -- Consent of Independent Auditors
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the persons who administer the Plan have duly caused this annual report to be signed on its behalf by the undersigned, hereunto duly authorized. PRENTICE HALL COMPUTER PUBLISHING DIVISION RETIREMENT PLAN Date: June 29, 1994 By: /s/ RUDOLPH L. HERTLEIN -------------------------- Rudolph L. Hertlein Member of the Administrative Committee F-1 3 REPORT OF INDEPENDENT AUDITORS The Administrative Committee Prentice Hall Inc. We have audited the accompanying statements of financial condition of Prentice Hall Computer Publishing Division Retirement Plan as of December 31, 1993 and 1992 and the related statements of income and changes in plan equity for the years ended December 31, 1993 and 1992 and the period from November 18, 1991 (inception) to December 31, 1991, and the schedule of investments as of December 31, 1993. These financial statements and schedule are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements and schedule 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 and schedule referred to above present fairly, in all material respects, the financial condition of the Prentice Hall Computer Publishing Division Retirement Plan at December 31, 1993 and 1992, and the income and changes in plan equity for the years ended December 31, 1993 and 1992 and the period from November 18, 1991 (inception) to December 31, 1991 in conformity with generally accepted accounting principles. New York, New York Ernst & Young June 17, 1994 F-2 4 PRENTICE HALL COMPUTER PUBLISHING DIVISION RETIREMENT PLAN STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 1993
PARAMOUNT COMMUNICATIONS INC. EQUITY INCOME CLEARING COMBINED STOCK FUND FUND FUND FUND FUNDS -------------- ------------ -------------- ------------ -------------- ASSETS Investments -- Note D and Schedule I Common Stock of Paramount Communications Inc.............. $ 708,147 $ 708,147 Other....................................... 7,984 $ 650,893 $ 742,867 $ 13,266 1,415,010 ---------- ---------- ---------- ---------- ----------- 716,131 650,893 742,867 13,266 2,123,157 Contributions receivable Employer.................................... 5,463 14,327 16,117 35,907 Employee.................................... 4,653 7,381 12,158 24,192 ---------- ---------- ---------- ---------- ----------- 10,116 21,708 28,275 60,099 Dividends and interest receivable.............. 1,830 31 1,861 Interfund receivables (payables)............... (91,241) 49,279 41,962 -0- Forfeitures.................................... (16,325) (16,368) (15,957) 48,650 -0- ---------- ---------- ---------- ---------- ----------- TOTAL ASSETS.......................... $ 620,511 $ 705,512 $ 797,147 $ 61,947 $ 2,185,117 ========== ========== ========== ========== =========== PLAN EQUITY Plan Equity -- including net unrealized appreciation of investments -- Note C...... $ 620,511 $ 705,512 $ 797,147 $ 61,947 2,185,117 ========== ========== ========== ========== ===========
See notes to financial statements. F-3 5 PRENTICE HALL COMPUTER PUBLISHING DIVISION RETIREMENT PLAN STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 1992
PARAMOUNT COMMUNICATIONS INC. EQUITY INCOME CLEARING COMBINED STOCK FUND FUND FUND FUND FUNDS -------------- ------ ------ -------- -------- ASSETS Investments -- Note D Common Stock of Paramount Communications Inc............. $ 278,100 $ 278,100 Other....................................... 6,955 $ 388,655 $ 425,426 $ 6,791 827,827 --------- --------- --------- -------- ----------- 285,055 388,655 425,426 6,791 1,105,927 Contributions receivable Employer.................................... 196 75 (77) 194 Employee.................................... 207 158 (153) 212 --------- --------- --------- ----------- 403 233 (230) 406 Dividends and interest receivable.............. 1,219 13 1,232 Interfund receivables (payables)............... (3,526) 3,526 -0- Forfeitures.................................... (334) (452) (306) 1,092 -0- --------- --------- --------- -------- ----------- TOTAL ASSETS................................ $ 282,817 $ 388,436 $ 424,890 $ 11,422 $ 1,107,565 ========= ========= ========= ======== =========== LIABILITIES AND PLAN EQUITY Distributions payable Cash........................................ $ 714 $ 325 $ 1,039 Plan Equity -- including net unrealized appreciation (depreciation) of investments -- Note C................................... $ 282,817 387,722 424,565 $ 11,422 1,106,526 --------- --------- --------- -------- ----------- TOTAL LIABILITIES AND PLAN EQUITY........ $ 282,817 $ 388,436 $ 424,890 $ 11,422 $ 1,107,565 ========= ========= ========= ======== ===========
See notes to financial statements. F-4 6 PRENTICE HALL COMPUTER PUBLISHING DIVISION RETIREMENT PLAN STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY YEAR ENDED DECEMBER 31, 1993
PARAMOUNT COMMUNICATIONS INC. EQUITY INCOME CLEARING COMBINED STOCK FUND FUND FUND FUND FUNDS -------------- ------ ------ -------- -------- Net investment income Dividends on Paramount Communications Inc. Common Stock............................... $ 5,762 $ 5,762 Interest income............................... 273 $ 1 $ 2 $ 424 700 Administrative expenses....................... (20,668) (20,668) --------- --------- --------- -------- ----------- 6,035 1 2 (20,244) (14,206) Net realized gain on disposition of investments -- Note C......................... 170 3,572 2,627 6,369 Unrealized appreciation of investments -- Note C......................... 258,319 46,150 27,938 332,407 Contributions Employer...................................... 109,405 170,820 196,882 477,107 Employee...................................... 93,197 87,998 148,525 329,720 Rollovers from non-affiliated plans.............. 4,029 23,061 30,497 3,086 60,673 --------- --------- --------- -------- ----------- 471,155 331,602 406,471 (17,158) 1,192,070 Withdrawals and terminations Paid in cash.................................. (23,351) (38,725) (51,403) (113,479) Forfeitures...................................... (18,874) (24,312) (24,497) 67,683 -0- Interfund transfers.............................. (91,236) 49,225 42,011 -0- --------- --------- --------- -------- ----------- Income and changes in Plan Equity for the year... 337,694 317,790 372,582 50,525 1,078,591 Plan Equity at beginning of year................. 282,817 387,722 424,565 11,422 1,106,526 --------- --------- --------- -------- ----------- Plan Equity at end of year....................... $ 620,511 $ 705,512 $ 797,147 $ 61,947 $ 2,185,117 ========= ========= ========= ======== ===========
See notes to financial statements. F-5 7 PRENTICE HALL COMPUTER PUBLISHING DIVISION RETIREMENT PLAN STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY YEAR ENDED DECEMBER 31, 1992
PARAMOUNT COMMUNICATIONS INC. EQUITY INCOME CLEARING COMBINED STOCK FUND FUND FUND FUND FUNDS -------------- ------ ------ -------- -------- Net investment income Dividends on Paramount Communications Inc. Common Stock................................. $ 2,736 $ 2,736 Interest income................................. 537 $ 100 $ 320 $ 76 1,033 Administrative expenses......................... (5,740) (5,740) --------- --------- --------- -------- ----------- 3,273 100 320 (5,664) (1,971) Net realized gain (loss) on disposition of investments -- Note C........................... (311) 97 595 381 Unrealized appreciation (depreciation) of investments -- Note C........................... (2,492) 26,991 17,095 41,594 Contributions Employer........................................ 77,594 111,375 152,167 341,136 Employee........................................ 84,121 107,914 132,577 324,612 Rollovers from non-affiliated plans................ 116,060 157,878 162,584 436,522 --------- --------- --------- -------- ----------- 278,245 404,355 465,338 (5,664) 1,142,274 Withdrawals and terminations Paid in cash.................................... (7,423) (27,252) (51,383) (86,058) Forfeitures........................................ (2,423) (5,440) (9,223) 17,086 -0- Interfund transfers................................ 3,540 (523) (3,017) -0- --------- --------- --------- -------- ----------- Income and changes in Plan Equity for the year..... 271,939 371,140 401,715 11,422 1,056,216 Plan Equity at beginning of year................... 10,878 16,582 22,850 -0- 50,310 --------- --------- --------- -------- ----------- Plan Equity at end of year......................... $ 282,817 $ 387,722 $ 424,565 $ 11,422 $ 1,106,526 ========= ========= ========= ======== ===========
See notes to financial statements. F-6 8 PRENTICE HALL COMPUTER PUBLISHING DIVISION RETIREMENT PLAN STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY PERIOD FROM NOVEMBER 18, 1991 (INCEPTION) TO DECEMBER 31, 1991
PARAMOUNT COMMUNICATIONS INC. EQUITY INCOME COMBINED STOCK FUND FUND FUND FUNDS ---------- --------- -------- -------- Contributions Employer.............................................. $ 5,889 $ 9,650 $ 14,261 $ 29,800 Employee.............................................. 4,989 6,932 8,589 20,510 -------- -------- -------- -------- Income and changes in Plan Equity for the period......... 10,878 16,582 22,850 50,310 Plan Equity at beginning of period....................... -0- -0- -0- -0- -------- -------- -------- -------- Plan Equity at end of period............................. $ 10,878 $ 16,582 $ 22,850 $ 50,310 ======== ======== ======== ========
See notes to financial statements. F-7 9 PRENTICE HALL COMPUTER PUBLISHING DIVISION RETIREMENT PLAN NOTES TO FINANCIAL STATEMENTS NOTE A - ACCOUNTING POLICIES The accounting records of Prentice Hall Computer Publishing Division Retirement Plan (the "Plan") are maintained on the accrual basis. The Plan is subject to the Employee Retirement Income Security Act of 1974. Investments are stated at aggregate current value. Investments in securities which are traded on national securities exchanges are valued at the last reported sales price on the last business day of the year; investments traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the mean between the last reported bid and ask prices. The Investment Pricing Department of the Trustee establishes current values for other investments which do not have an established market. All costs and expenses incurred with regard to the purchase, sale or transfer of investments are borne by the Plan. Expenses for administering the Plan may be paid by using Members' forfeitures. Security transactions are recorded on the trade date. The change in the difference between current value and the cost of investments is reflected in the Statement of Income and Changes in Plan Equity as unrealized appreciation (depreciation) of investments. Net realized gain (loss) on disposition of investments represents the difference between the proceeds received and the average cost of investments sold. NOTE B - INCOME TAX STATUS The Plan received a favorable determination letter from the Internal Revenue Service, dated July 23, 1993, with respect to the qualified status of the Plan under Section 401 of the Internal Revenue Code (the "Code") and the tax-exempt status of the underlying trust under Section 501 of the code. The Plan is exempt from federal income tax and the Member will not be subject to federal income tax with respect to contributions made by the Employer to the Member's account and any earnings thereon or earnings on all Member contributions while such amounts are held in trust. The Administrative Committee is not aware of any course of action or series of events that have occurred that might adversely affect the Plan's qualified status. F-8 10 PRENTICE HALL COMPUTER PUBLISHING DIVISION RETIREMENT PLAN NOTES TO FINANCIAL STATEMENTS (continued) NOTE C - INVESTMENTS IN SECURITIES The net unrealized appreciation (depreciation) of investments included in Plan Equity is as follows:
PARAMOUNT COMMUNICATIONS INC. EQUITY INCOME COMBINED STOCK FUND FUND FUND FUNDS -------------- ------ ------ -------- Balance at December 31, 1991......... $ -0- $ -0- $ -0- $ -0- Change............................... (2,492) 26,991 17,095 41,594 --------- -------- -------- --------- Balance at December 31, 1992......... (2,492) 26,991 17,095 41,594 Change............................... 258,319 46,150 27,938 332,407 --------- -------- -------- --------- Balance at December 31, 1993......... $ 255,827 $ 73,141 $ 45,033 $ 374,001 ========= ======== ======== =========
The net realized gain (loss) on disposition of investments was computed as follows:
PARAMOUNT COMMUNICATIONS INC. EQUITY INCOME COMBINED STOCK FUND FUND FUND FUNDS -------------- ------ ------ -------- Year ended December 31, 1993 Proceeds........................ $ 205,962 $ 38,689 $ 45,211 $ 289,862 Cost-average.................... 205,792 35,117 42,584 283,493 --------- --------- --------- ----------- Net realized gain.................. $ 170 $ 3,572 $ 2,627 $ 6,369 ========= ========= ========= =========== Year ended December 31, 1992 Proceeds........................ $ 365,953 $ 364,614 $ 408,415 $ 1,138,982 Cost-average.................... 366,264 364,517 407,820 1,138,601 --------- --------- --------- ----------- Net realized gain (loss)........... $ (311) $ 97 $ 595 $ 381 ========= ========= ========= ===========
As of December 31, 1991, the Plan had no investments. F-9 11 PRENTICE HALL COMPUTER PUBLISHING DIVISION RETIREMENT PLAN NOTES TO FINANCIAL STATEMENTS (continued) The Fair value of individual investments exclusive of common Stock of Paramount Communications Inc., that represents 5% or more of the Plan's net assets are as follows:
December ------------- 1993 1992 ----- ----- Bankers Trust Pyramid Equity Index Fund $650,893 $388,655 Bankers Trust Pyramid United States Government Plus Bond Fund $742,867 $425,426
The Plan Equity available to Members in each fund at December 31, 1993 and 1992 was as follows:
UNITS UNIT FUND OUTSTANDING VALUE PLAN EQUITY ---- ----------- ----- ----------- December 31, 1993 Paramount Communications Inc. Stock Fund ......................... 302,676.020 2.05008312 $ 620,511 Equity Fund ............................... 592,535.300 1.19066662 705,512 Income Fund ............................... 699,948.700 1.13886494 797,147 ----------- Plan Equity available to Members .............................. 2,123,170 Clearing Fund ............................. 61,947 ----------- Plan Equity ............................... $ 2,185,117 =========== December 31, 1992 Paramount Communications Inc. Stock Fund ......................... 237,565.657 1.19047931 $ 282,817 Equity Fund ............................... 358,225.997 1.08233909 387,722 Income Fund ............................... 393,672.784 1.07847181 424,565 ----------- Plan Equity available to Members .............................. 1,095,104 Clearing Fund ............................. 11,422 ----------- Plan Equity ............................... $ 1,106,526 =========== F-10
12 PRENTICE HALL COMPUTER PUBLISHING DIVISION RETIREMENT PLAN NOTES TO FINANCIAL STATEMENTS (continued) NOTE D - INVESTMENT PROGRAMS The investment programs of the Plan are as follows: Member contribution - A Member may contribute to the Plan from 1% to 16% of the Member's base pay, including certain commissions, subject to adjustment to comply with law. A Member's contributions can be made with pre-tax or post-tax dollars, subject to an overall maximum of 10% on pre-tax contributions. A Member may change or suspend the amount of the Member's contribution at any time effective as of the first payday of any calendar quarter, however, any suspension of contributions must be for a minimum of ninety days. Employer contribution - The Employer will provide a matching contribution of 50% of the first 6% of each Member's contribution. In addition, the Employer shall contribute a retirement contribution in an amount equal to 3 1/2% of each Member's eligible compensation. Members vest in the Employer's matching and retirement contributions after the completion of one full year of service at a rate of 20% for each of the next four full years of service with an additional 20% after the completion of five years of service. Amounts which have been forfeited in accordance with provisions of the Plan may be used to defray administrative expenses or reduce future Employer contributions. Members may invest their contributions and the Employer's matching and retirement contributions in one or more of the following investment programs in units of 10%. Paramount Communications Inc. Stock Fund This fund is invested in Paramount Communications Common Stock. Dividends received on stock in the fund are reinvested in Paramount Communications Common Stock. Chemical Banking Corporation is the trustee of this fund. Equity Fund This fund invests in equity securities, securities convertible into equity securities and/or a commingled equity trust and is designed to approximate the performance of the Standard & Poor's 500 Stock Index. Bankers Trust Company is the trustee and investment manager of this fund. Income Fund This fund invests in securities issued by insurance companies, financial institutions and the U.S. Government and its agencies. This fund is designed to preserve capital, but it is not risk free. Bankers Trust Company is the trustee and investment manager of this fund. Such direction may be revised by the Member quarterly. The number of Members in each fund at December 31, 1993 was as follows: Paramount Communications Inc. Stock Fund......... 241 Income Fund...................................... 350 Equity Fund...................................... 292 The total number of Members in the Plan was less than the sum of the number of Members shown above because many of the Members participated in more than one fund. NOTE E - DISTRIBUTIONS PAYABLE As of December 31, 1993, there were $134,796 of assets that have been allocated to participants who have withdrawn from the Plan as of year-end, but for which disbursement of those funds from the Plan has not yet been made. NOTE F - SUBSEQUENT EVENT Pursuant to an Amended and Restated Agreement and Plan of Merger dated as of February 4, 1994 (as subsequently amended, the "Merger Agreement") between Viacom Inc. ("Viacom") and Paramount Communications Inc. ("PCI"), PCI will become a wholly owned subsidiary of Viacom at the effective time of the merger. In March 1994, pursuant to the related tender offer, all shares of PCI held by the Plan were tendered to Viacom. The Plan has received cash of $107 per share for approximately half of the tendered shares and will receive certain securities of Viacom for its remaining shares of PCI upon completion of the merger in July 1994. F-11 13 SCHEDULE I PRENTICE HALL COMPUTER PUBLISHING DIVISION RETIREMENT PLAN INVESTMENTS DECEMBER 31, 1993
SHARES OR APPROXIMATE PRINCIPAL MARKET AMOUNT COST VALUE --------- --------- ----------- PARAMOUNT COMMUNICATIONS INC. STOCK FUND Paramount Communications Inc. Common Stock .............................. 9,108 $ 452,320 $ 708,147 Chemical Banking Corporation Temporary Investment Fund ................. 7,984 7,984 7,984 ---------- ---------- TOTAL PARAMOUNT COMMUNICATIONS INC. STOCK FUND ........................... 460,304 716,131 EQUITY FUND Bankers Trust Pyramid Equity Index Fund .................................. 658 577,752 650,893 INCOME FUND Bankers Trust Pyramid United States Government Plus Bond Fund ................... 439,008 697,834 742,867 CLEARING FUND Chemical Banking Corporation Temporary Investment Fund ............................. 13,266 13,266 13,266 ---------- ---------- TOTAL INVESTMENTS ......................... $1,749,156 $2,123,157 ========== ==========
S-1 14 EXHIBIT I 15 EXHIBIT I CONSENT OF INDEPENDENT AUDITORS We consent to the incorporation by reference in the Registration Statement (Form S-8 No. 33-46900) pertaining to the Prentice Hall Computer Publishing Division Retirement Plan (the "Plan") and in the related Prospectus of our report dated June 17, 1994, with respect to the financial statements and schedule of the Plan included in this Annual Report (Form 11-K) for the year ended December 31, 1993. New York, New York Ernst & Young June 24, 1994 -----END PRIVACY-ENHANCED MESSAGE-----