-----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, nv+o0VmxXe01PebYxCnMmn89nsD0bnhzOoklFuTDI0DbBqAxij4lWcwGUF6ot7EZ ygv80Yrp8Uq3w2NO27e8cw== 0000753308-95-000024.txt : 199506300000753308-95-000024.hdr.sgml : 19950630 ACCESSION NUMBER: 0000753308-95-000024 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19941231 FILED AS OF DATE: 19950629 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: FPL GROUP INC CENTRAL INDEX KEY: 0000753308 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 592449419 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08841 FILM NUMBER: 95550914 BUSINESS ADDRESS: STREET 1: 700 UNIVERSE BLVD CITY: JUNO BEACH STATE: FL ZIP: 33408 BUSINESS PHONE: 4076944644 MAIL ADDRESS: STREET 1: P O BOX 14000 CITY: JUNO BEACH STATE: FL ZIP: 33408 11-K 1 EMPLOYEE THRIFT AND RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES OF FPL FOR THE FISCAL YEAR ENDED DECEMBER 31, 1994 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 11-K [ X ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED] For the fiscal year ended December 31, 1994 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] Commission file number 1-8841 Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of Florida Power & Light Company (Full title of the plan) FPL GROUP, INC. (Name of issuer of the securities held pursuant to the plan) 700 Universe Boulevard Juno Beach, Florida 33408 (Address of principal executive offices) (Zip Code) INDEPENDENT AUDITORS' REPORT EMPLOYEE BENEFITS COMMITTEE OF THE BOARD OF DIRECTORS OF FPL GROUP, INC.: We have audited the statements of financial condition of the Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of Florida Power & Light Company (the "Plan") as of December 31, 1994 and 1993, and the related statement of income and changes in net assets for the year ended December 31, 1994. 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 financial condition of the Plan at December 31, 1994 and 1993 and its income and changes in net assets for the year ended December 31, 1994 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 of (1) assets held for investment as of December 31, 1994, and (2) transactions in excess of five percent of the current value of plan assets for the year ended December 31, 1994, 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. These schedules are the responsibility of the Plan's management. Such schedules have been subjected to the auditing procedures applied in our audit of the basic 1994 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. DELOITTE & TOUCHE LLP Miami, Florida June 26, 1995 EMPLOYEE THRIFT AND RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES OF FLORIDA POWER & LIGHT COMPANY STATEMENTS OF FINANCIAL CONDITION
December 31, 1994 1993 ASSETS Receivables: Employer contributions ......................................................... - $ 635,120 Income ......................................................................... $ 1,000 522 Total receivables .......................................................... 1,000 635,642 General investments: Interest-bearing cash .......................................................... 1,355,188 1,587,722 Loans to participants - other .................................................. 16,730,150 11,599,055 Value of interest in master trusts ............................................. 69,133,743 101,183,100 Value of interest in registered investment companies ........................... 59,021,694 - Total general investments .................................................. 146,240,775 114,369,877 Employer securities: Employer securities held by the Plan ........................................... 126,026,955 155,972,982 Leveraged ESOP employer securities (allocated to the Plan) ..................... 108,031,583 120,049,150 Total employer securities .................................................. 234,058,538 276,022,132 Total assets ..................................................................... 380,300,313 391,027,651 LIABILITIES Operating payables ............................................................... 362,063 400,182 Acquisition indebtedness (Leveraged ESOP loan allocated to the Plan) ............. 104,908,423 100,488,744 Total liabilities ................................................................ 105,270,486 100,888,926 NET ASSETS ....................................................................... $275,029,827 $290,138,725
The accompanying Notes to Financial Statements are an integral part of these statements. EMPLOYEE THRIFT AND RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES OF FLORIDA POWER & LIGHT COMPANY STATEMENT OF INCOME AND CHANGES IN NET ASSETS
Year ended December 13, 1994 INCOME Contributions: Received from employer ......................................................... $ 1,989,996 Received from participants ..................................................... 15,665,753 Noncash contributions (from employer) .......................................... 4,824,487 Total contributions .......................................................... $ 22,480,236 Earnings on investments: Interest: Interest-bearing cash ........................................................ 32,593 Other loans (participant loans) .............................................. 1,182,867 Total interest ............................................................. 1,215,460 Common stock dividends ......................................................... 6,689,188 Net loss on sale of assets: Aggregate proceeds ........................................................... 39,096,048 Aggregate carrying amount .................................................... 44,071,618 Net loss on sale of assets ................................................. (4,975,570) Unrealized depreciation of assets .............................................. (10,917,922) Net investment gain from master trusts ......................................... 2,769,818 Net investment loss from registered investment companies ....................... (1,677,659) Total income ..................................................................... 15,583,551 EXPENSES Benefit payment and payments to provide benefits: Directly to participants or beneficiaries ...................................... 18,161,897 Total payments to provide benefits ........................................... 18,161,897 Administrative expenses: Recordkeeping fees ............................................................. 64,596 Total administrative expenses ................................................ 64,596 Total expenses ................................................................... 18,226,493 NET LOSS ......................................................................... (2,642,942) TRANSFERS Transfers to the Plan ............................................................ 3,933,769 Effect of current year Leveraged ESOP activity ................................... (16,399,725) Total transfers from the Plan .................................................... (12,465,956) NET ASSETS AT DECEMBER 31, 1993 .................................................. 290,138,725 NET ASSETS AT DECEMBER 31, 1994 .................................................. $275,029,827
The accompanying Notes to Financial Statements are an integral part of these statements. EMPLOYEE THRIFT AND RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES OF FLORIDA POWER & LIGHT COMPANY NOTES TO FINANCIAL STATEMENTS For the year ended December 31, 1994 1. Description of the Plan and Significant Accounting Policies The Plan The following description of the Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of Florida Power & Light Company (Plan) provides only general information. Participating employees (Members) should refer to the Summary Plan Description in their employee handbook for a more complete description of the Plan. Effective January 1, 1994, Fidelity Management Trust Company (Trustee) replaced Mellon Bank, N.A. as administrator of the trust established under the Plan (Trust). Participation in the Plan, which is voluntary, is open to any employee of Florida Power & Light Company (FPL or Company) whose compensation is established under a collective bargaining agreement between the Company and the International Brotherhood of Electrical Workers AFL- CIO through its System Council U-4 (Bargaining Unit). The Plan includes a cash or deferred compensation arrangement (Tax Saver Option) permitted by Section 401(k) of the Internal Revenue Code of 1986, as amended (Code). The Tax Saver Option permits a Member to elect to defer federal income taxes on all or a portion of his contributions (Tax Saver Contributions) until they are distributed from the Plan. Tax Saver Contributions were limited in 1994 to a maximum of $9,240 per Member and may be increased or decreased in future years for cost-of- living adjustments. The Plan also includes leveraged employee stock ownership plan (Leveraged ESOP) provisions. The Leveraged ESOP is a stock bonus plan within the meaning of Treasury Regulation Section 1.401-1(b)(1)(iii) that is qualified under Section 401(a) of the Code and is designed to invest primarily in common stock of FPL Group, Inc. (Common Stock). The Trust purchased Common Stock from FPL Group, Inc. (FPL Group) using the proceeds of a loan (Acquisition Indebtedness) from FPL Group Capital Inc (FPL Group Capital), a subsidiary of FPL Group (see Note 3). The Common Stock acquired by the Trust is initially held in a separate account (ESOP Account). As the Acquisition Indebtedness (including interest) is repaid, each Member's account is allocated its share of Common Stock released from the ESOP Account. Contributions, Loans, Withdrawals and Transfers to (from) the Plan The Plan provides for basic contributions by eligible employees in whole percentages from 1% to 6% of their base compensation (Earnings). Such contributions are matched 50% by the Company with shares of Common Stock equal in value to 50% of a Member's basic after-tax and basic Tax Saver Contributions plus an additional 50% on the first three percent of a Member's Earnings contributed as a basic Tax Saver Contribution. The Plan also provides for supplemental contributions by Members to be made in whole percentages from 1% to 10% of their Earnings, which are not matched by the Company. The value of a Member's contributions (including all income, gains and losses) is at all times 100% vested. Company contributions vest at a rate of 20% each year and are fully vested upon a Member attaining five years of service as a Member of the Plan. An employee may also receive vesting credit for prior years of service as a member of the FPL Group Employee Thrift Plan (Group Plan). The Plan's investment options during the year were expanded to include eleven investment choices: eight core investment options and three investment strategy options. The core investment options include various mutual funds, a separately managed portfolio of short- and long-term investment contracts and Common Stock. The strategy options combine portions of the individual core investment options available through the Plan providing various combinations of stocks and fixed income investments. The Plan allows Members, at any time, to change their contribution percentage, to change their investment option allocation for future contributions or to transfer their account balance attributable to Member contributions from one investment option to another. At year end, the number of Members contributing to the Plan was 3,808. Company contributions are primarily made from Common Stock shares released from the ESOP Account. Forfeitures of non-vested Company contributions due to termination of Plan participation are used to reduce the amount of future Company contributions to the Plan. A Member who has attained at least the age of fifty-five and completed five years of service while a Member will be permitted a one time election to transfer the total Company contributions made to his or her account and any earnings thereon to one or more of the other investment options. Any future Company contributions will continue to be invested in Common Stock. Company contributions made on behalf of business managers and others employed by the Bargaining Unit and serving on Company property while on a leave of absence from the Company will be reimbursed by the Bargaining Unit. A Member may borrow from his or her Plan accounts during their employment under certain conditions. At December 31, 1994, the loan interest rate was 7.5%. Withdrawals by Members from certain of their accounts during their employment are permitted with certain penalties and restrictions. The penalties limit a Member's participation in the Plan for varying periods following a withdrawal. Transfers to (from) the Plan generally represent net transfers between the Plan and the Group Plan. The transfers arise as a result of members relocating between affiliated entities participating in the plans. Basis of Accounting The financial statements of the Plan are prepared under the accrual basis of accounting. Investment income and interest income on loans to Members is recognized when earned. Contributions by Members and Company contributions are accrued on the basis of amounts withheld through payroll deductions. Distributions to Members are recorded when paid. Assets of the Plan are stated at market value, except loans to Members which are stated at cost and insurance and financial institution contracts which are stated at contract value, all of which approximates market value. Market value is determined using the closing market price or the last recorded bid price. Investments Purchases and sales of investment securities are recorded on the trade date. Gains or losses on sales of investment securities are determined using the carrying amount of the securities. The carrying amounts of securities held in Member accounts are adjusted daily; securities held in the ESOP Account (see Note 2) are adjusted annually. Unrealized appreciation or depreciation is recorded to recognize changes in market value. 2. Employee Stock Ownership Plan Account Allocation The assets, liabilities and net income of the ESOP Account are not considered plan assets but are for the joint benefit of the Plan and the Group Plan. The ESOP Account is allocated for financial reporting purposes based on each plan's relative net assets. The Plan's allocation of Common Stock held in the ESOP Account (employer securities), Acquisition Indebtedness and interest payable have been reflected in the Statements of Financial Condition, but are not available for, or the obligation of, Plan Members. The employer securities will be released from the ESOP Account and distributed to Members' accounts in satisfaction of part or all of the Company's matching contribution obligation under the Plan as the Acquisition Indebtedness is repaid (estimated to occur over the next fifteen years). ESOP shares allocated to date are classified as employer securities held by the Plan on the Statements of Financial Condition. The Acquisition Indebtedness will be repaid from dividends on the shares acquired by the ESOP Account, as well as from cash contributions from FPL Group. The net effect of a change in the allocation percentage from year to year is reported as a transfer to or from the Plan. The value of the shares distributed to Member accounts is not affected by these allocations. Condensed financial statements of the ESOP Account are presented below, indicating the allocations made to each plan. The effect of current year Leveraged ESOP activity on net assets is included in transfers to the plan in the financial statements of each plan. Distributions of shares to the plans are presented as noncash contributions in the financial statements of each plan.
Total ESOP The Account Group Plan The Plan Allocation percentage ............................................ 100% 70% 30% Accrued interest ................................................. $ 3,370 $ 2,370 $ 1,000 Employer securities .............................................. 363,742,703 255,711,120 108,031,583 Total assets ................................................... 363,746,073 255,713,490 108,032,583 Acquisition indebtedness ......................................... 353,227,013 248,318,590 104,908,423 Interest payable ................................................. 1,219,069 857,006 362,063 Total liabilities .............................................. 354,446,082 249,175,596 105,270,486 Net assets - end ................................................. $ 9,299,991 $ 6,537,894 $ 2,762,097 Contributions received from employer ............................. $ 15,742,915 Interest income .................................................. 8,766 Dividends ........................................................ 19,890,457 Net loss on sale of assets (1) ................................... (3,455,010) Unrealized depreciation of assets ................................ (41,478,488) Total income ................................................... (9,291,360) Interest expense ................................................. 34,477,086 Net loss ......................................................... (43,768,446) $(30,769,218) $(12,999,228) Distribution of shares to plans .................................. (15,001,977) (10,177,490) (4,824,487) Transfers to (from) plan ......................................... - (1,423,990) 1,423,990 Effect of current year Leveraged ESOP activity on net assets ..... (58,770,423) (42,370,698) (16,399,725) Net assets - beginning ........................................... 68,070,414 48,908,592 19,161,822 Net assets - end ................................................. $ 9,299,991 $ 6,537,894 $ 2,762,097 (1) Primarily represents the decrease in market value since the beginning of the year of shares that were held by the ESOP Account and distributed to the plans during the current year.
3. Acquisition Indebtedness In December 1990, the Trust borrowed $360 million from FPL Group Capital to purchase approximately 12.4 million shares of Common Stock. The unallocated shares of Common Stock acquired with the proceeds of the Acquisition Indebtedness are collateral for the Acquisition Indebtedness. As principal payments are made, a percentage of Common Stock is allocated to each Member's account and released as collateral. During 1994, 544,385 shares were released as collateral for the Acquisition Indebtedness. The scheduled principal repayments of the Acquisition Indebtedness for the next five years and thereafter are as follows: 1995 - $4,190,000; 1996 - $5,532,000; 1997 - $7,032,000; 1998 - $8,705,000; 1999 - $10,568,000 and thereafter - $317,200,000. The Acquisition Indebtedness matures in 2010, bears interest at a fixed rate of 9.69% per year and is to be repaid using dividends received on Common Stock held by the ESOP Account and ESOP shares distributed to Member's accounts, along with cash contributions from FPL Group. In 1994, such dividends received totaled approximately $22,978,000 and cash contributions from FPL Group totaled approximately $15,743,000. See Note 2 for information on the Plan's allocation percentage of the Acquisition Indebtedness. 4. Parties-In-Interest Transactions Company contributions are primarily made in Common Stock released from the ESOP Account or in cash, which is used to purchase Common Stock by the Trustee. Such amounts are reported as noncash contributions (from employer) and contributions received from employer, respectively. All dividends received by the Plan were earned on Common Stock. Dividends on shares held in the ESOP Account were used to repay the Acquisition Indebtedness (see Note 3). Certain dividends on shares held in Members' accounts are reinvested in Common Stock for the benefit of its Members pursuant to FPL Group's Dividend Reinvestment and Common Share Purchase Plan in which the Trustee participates. 5. Statement of Financial Condition Information by Investment Fund Option Information about the Statements of Financial Condition by investment fund option is as follows:
December 31, 1994 1993 Interest-bearing cash: Fidelity Retirement Government Money Market Portfolio ........................... $ 1,355,188 - EB Temporary Investment Fund .................................................... - $ 1,587,722 $ 1,355,188 $ 1,587,722 Value of interest in Master Trusts: Conservative Investment Strategy ................................................ $ 3,606,419 - Moderate Growth Investment Strategy ............................................. 12,924,502 - Long-term Growth Investment Strategy ............................................ 10,075,095 - Short-term liquid investments maintained in FPL Company Stock Fund .............. 1,716,298 - Managed Income Portfolio (previously Fund A) .................................... 40,811,429 - Fund A .......................................................................... - $ 67,594,539 Fund B .......................................................................... - 33,588,561 $ 69,133,743 $101,183,100 Value of interest in registered investment companies: Fidelity U.S. Bond Index Portfolio .............................................. $ 4,563,339 - Fidelity U.S. Equity Index Portfolio (previously Fund B) ........................ 20,392,274 - Fidelity Magellan Fund .......................................................... 17,776,491 - Fidelity OTC Portfolio .......................................................... 7,973,058 - Fidelity Overseas Fund .......................................................... 8,316,532 - $ 59,021,694 - FPL Company Stock Fund ............................................................ $126,026,955 $155,972,982
6. Statement of Income and Changes in Net Assets Information by Investment Fund Option Information about the Statement of Income and Changes in Net Assets by investment fund option is as follows:
Fidelity Retirement Moderate Long-term Government Conservative Growth Growth Money Mkt. Investment Investment Investment Portfolio Strategy Strategy Strategy INCOME Contributions ........................................... $ 8,376 $ 156,163 $ 1,082,252 $ 1,252,800 Interest and dividends .................................. 35,937 10,399 70,372 86,394 Net investment gain (loss) from master trusts ........... - 40,316 (161,878) (227,139) Net investment gain (loss) from registered investment companies .................................. - - - - Total income .......................................... 44,313 206,878 990,746 1,112,055 EXPENSES Benefit payment and payments to provide benefits ........ 51,927 77,093 317,220 260,106 Administrative expenses ................................. 1,413 737 2,384 1,949 Total expenses ........................................ 53,340 77,830 319,604 262,055 NET INCOME (LOSS) ....................................... (9,027) 129,048 671,142 850,000 TRANSFERS Net transfers to (from) the Plan ........................ 22,137 56,222 (26,447) (19,092) Net exchanges between investment funds .................. 1,390,852 3,534,575 12,590,582 9,525,150 Net participant loan activity ........................... (48,774) (113,426) (310,775) (280,963) Total transfers ....................................... 1,364,215 3,477,371 12,253,360 9,225,095 NET ASSETS AT DECEMBER 31, 1993 ......................... 0 0 0 0 NET ASSETS AT DECEMBER 31, 1994 ......................... $1,355,188 $3,606,419 $12,924,502 $10,075,095 /TABLE
Fidelity Fidelity Managed U.S. Bond U.S. Equity Fidelity Income Index Index Magellan Portfolio Portfolio Portfolio Fund INCOME Contributions ....................................... $ 2,479,928 $ 488,302 $ 2,263,815 $ 2,343,027 Interest and dividends .............................. 197,633 29,978 177,522 147,119 Net investment gain (loss) from master trusts ....... 3,118,519 - - - Net investment gain (loss) from registered investment companies .............................. - (58,063) 376,040 (1,256,684) Total income ...................................... 5,796,080 460,217 2,817,377 1,233,462 EXPENSES Benefit payment and payments to provide benefits .... 5,732,192 173,039 1,822,973 393,509 Administrative expenses ............................. 8,306 8,482 21,303 9,402 Total expenses .................................... 5,740,498 181,521 1,844,276 402,911 NET INCOME (LOSS) ................................... 55,582 278,696 973,101 830,551 TRANSFERS Net transfers to (from) the Plan .................... 657,787 38,939 576,247 (63,907) Net exchanges between investment funds .............. (26,228,397) 4,339,884 (14,033,590) 17,391,479 Net participant loan activity ....................... (1,268,082) (94,180) (712,045) (381,632) Total transfers ................................... (26,838,692) 4,284,643 (14,169,388) 16,945,940 NET ASSETS AT DECEMBER 31, 1993 ..................... 67,594,539 0 33,588,561 0 NET ASSETS AT DECEMBER 31, 1994 ..................... $ 40,811,429 $4,563,339 $ 20,392,274 $17,776,491
FPL Fidelity Fidelity Company OTC Overseas Stock Portfolio Fund Fund INCOME Contributions ....................................................... $1,103,663 $1,184,899 $ 10,117,011 Interest and dividends .............................................. 72,919 81,465 6,995,748 Net loss on sale of assets .......................................... - - (4,975,570) Unrealized depreciation of assets ................................... - - (10,917,922) Net investment gain (loss) from master trusts ....................... - - - Net investment gain (loss) from registered investment companies ..... (511,734) (227,218) - Total income ...................................................... 664,848 1,039,146 1,219,267 EXPENSES Benefit payment and payments to provide benefits .................... 148,293 207,860 8,548,302 Administrative expenses ............................................. 302 675 9,643 Total expenses .................................................... 148,595 208,535 8,557,945 NET INCOME (LOSS) ................................................... 516,253 830,611 (7,338,678) TRANSFERS Net transfers to (from) the Plan .................................... (25,978) (14,444) 2,592,949 Net exchanges between investment funds .............................. 7,592,050 7,693,876 (23,796,461) Net participant loan activity ....................................... (109,267) (193,511) (1,852,144) Total transfers ................................................... 7,456,805 7,485,921 (23,055,656) NET ASSETS AT DECEMBER 31, 1993 ..................................... 0 0 158,137,587 NET ASSETS AT DECEMBER 31, 1994 ..................................... $7,973,058 $8,316,532 $127,743,253 /TABLE 7. Reconciliation of Financial Statements to Form 5500 Generally accepted accounting principles for employee benefit plans require benefit payments to be recorded when paid. Benefit payments as reported on Form 5500 are recorded when processed and approved for payment. The following is a reconciliation of benefits paid to participants per the financial statements to the Form 5500:
Year Ended December 31, 1994 Benefits paid to participants per the financial statements ......................................... $18,161,897 Subtract: Amounts allocated to withdrawing participants at December 31, 1993 ...................... (7,074,873) Benefits paid to participants per the Form 5500 .................................................... $11,087,024
8. Income Taxes In January 1989, FPL received from the Internal Revenue Service (IRS) a favorable determination that the Plan, as amended and restated effective January 1, 1988, met the requirements of Section 401 of the Code. The IRS, in Revenue Procedure 93-6, has opened the determination process for plans which combine 401(k) or 401(m) and ESOP features, such as this Plan. The Company has submitted applications in 1995 for favorable determinations from the IRS that the Plan, both as amended and restated effective July 16, 1990, including amendments effective January 1, 1991, and as further amended through January 1, 1994, remains qualified under Section 401(a). If the Plan remains qualified, the Trust established thereunder will generally be exempt from federal income taxes under Section 501(a) of the Code; Company contributions paid to the Trust under the Plan will be allowable federal income tax deductions of the Company subject to the conditions and limitations of Section 404 of the Code; and the Plan will meet the requirements of Section 401(k) of the Code allowing Tax Saver Contributions to be exempt from federal income tax at the time such contributions are made, provided that in operation the Plan and Trust meet the applicable provisions of the Code. In addition, FPL Group will be able to claim an income tax deduction for dividends used to repay the Acquisition Indebtedness. Company contributions to the Plan on a Member's behalf, the Member's Tax Saver Contributions, and the earnings thereon generally are not taxable to the Member until such Company contributions, Tax Saver Contributions, and earnings from investments are distributed or withdrawn. A loan from a Member's account generally will not represent a taxable distribution if the loan is repaid in a timely manner and does not exceed certain limitations. 9. Expenses Certain fees such as annual account maintenance and investment management fees are primarily paid by Plan participants. FPL Group shares a portion of the annual account maintenance fees. Trustee's fees and expenses are paid by FPL Group (which may charge each company under the Plan its allocated share) and, therefore, are not reflected in the financial statements. 10. Master Trusts A summary of participating interest in and financial statements for the Master Trusts follow.
Percent of Interest in Master Trust December 31, 1994 1993 MANAGED INCOME PORTFOLIO FPL Group Employee Thrift Plan EIN 59-0247775 PN 002 ............................................................................ 76.6% - Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of Florida Power & Light Company EIN 59-0247775 PN 003 ............................................................................ 23.4% - CONSERVATIVE INVESTMENT STRATEGY FPL Group Employee Thrift Plan EIN 59-0247775 PN 002 ............................................................................ 81.6% - Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of Florida Power & Light Company EIN 59-0247775 PN 003 ............................................................................ 18.4% - MODERATE GROWTH INVESTMENT STRATEGY FPL Group Employee Thrift Plan EIN 59-0247775 PN 002 ............................................................................ 73.0% - Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of Florida Power & Light Company EIN 59-0247775 PN 003 ............................................................................ 27.0% - LONG-TERM GROWTH INVESTMENT STRATEGY FPL Group Employee Thrift Plan EIN 59-0247775 PN 002 ............................................................................ 73.9% - Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of Florida Power & Light Company EIN 59-0247775 PN 003 ............................................................................ 26.1% - MASTER TRUST FUND A FPL Group Employee Thrift Plan EIN 59-0247775 PN 002 ............................................................................ - 77.6% Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of Florida Power & Light Company EIN 59-0247775 PN 003 ............................................................................ - 22.4% MASTER TRUST FUND B FPL Group Employee Thrift Plan EIN 59-0247775 PN 002 ............................................................................ - 72.7% Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of Florida Power & Light Company EIN 59-0247775 PN 003 ............................................................................ - 27.3% /TABLE MANAGED INCOME PORTFOLIO STATEMENT OF FINANCIAL CONDITION
December 31, 1994 ASSETS General investments: Value of unallocated insurance and financial institution contracts .............................. $174,627,459 Total assets ...................................................................................... 174,627,459 LIABILITIES ....................................................................................... - NET ASSETS ........................................................................................ $174,627,459
STATEMENT OF INCOME AND CHANGES IN NET ASSETS
1994 INCOME Contributions received from participants ............................................ $ 6,799,449 Earnings on investments: Interest .......................................................................... 13,255,525 Total income ........................................................................ 20,054,974 EXPENSES Benefit payments to participants or beneficiaries ................................... 14,681,810 Account maintenance fees ............................................................ 20,218 Total expenses ...................................................................... 14,702,028 NET INCOME .......................................................................... 5,352,946 TRANSFERS Transfers into fund ................................................................. 51,831,741 Transfers out of fund ............................................................... (165,298,459) Net transfers ....................................................................... (113,466,718) NET ASSETS AT BEGINNING OF YEAR ..................................................... 282,741,231 NET ASSETS AT END OF YEAR ........................................................... $ 174,627,459 /TABLE CONSERVATIVE INVESTMENT STRATEGY STATEMENT OF FINANCIAL CONDITION
December 31, 1994 ASSETS Receivables: Income ......................................................................................... $ 59,409 General investments: Value of unallocated insurance and financial institution contracts ............................. 9,752,821 Mutual funds ................................................................................... 9,857,525 Total general investments .................................................................. 19,610,346 Total assets ..................................................................................... 19,669,755 LIABILITIES ...................................................................................... - NET ASSETS ....................................................................................... $19,669,755
STATEMENT OF INCOME AND CHANGES IN NET ASSETS
1994 INCOME Contributions received from participants ........................................... $ 774,566 Earnings on investments: Interest ......................................................................... 533,871 Dividends ........................................................................ 436,684 Net gain (loss) on sale of assets: Aggregate proceeds ............................................................. $13,659,546 Aggregate costs ................................................................ 13,969,939 (310,393) Unrealized depreciation of assets ................................................ (484,369) Total income ....................................................................... 950,359 EXPENSES Benefit payments to participants or beneficiaries .................................. 1,953,397 Account maintenance fees ........................................................... 2,862 Total expenses ..................................................................... 1,956,259 NET LOSS ........................................................................... (1,005,900) TRANSFERS Transfers into fund ................................................................ 24,777,928 Transfers out of fund .............................................................. (4,102,273) Net transfers ...................................................................... 20,675,655 NET ASSETS AT BEGINNING OF YEAR .................................................... - NET ASSETS AT END OF YEAR .......................................................... $19,669,755 /TABLE MODERATE GROWTH INVESTMENT STRATEGY STATEMENT OF FINANCIAL CONDITION
December 31, 1994 ASSETS Receivables: Income ......................................................................................... $ 72,578 General investments: Value of unallocated insurance and financial institution contracts ............................. 12,593,988 Mutual funds ................................................................................... 35,329,983 Total general investments .................................................................. 47,923,971 Total assets ..................................................................................... 47,996,549 LIABILITIES ...................................................................................... - NET ASSETS ....................................................................................... $47,996,549
STATEMENT OF INCOME AND CHANGES IN NET ASSETS
1994 INCOME Contributions received from participants ........................................... $ 3,712,440 Earnings on investments: Interest ......................................................................... 699,782 Dividends ........................................................................ 1,234,195 Net gain (loss) on sale of assets: Aggregate proceeds ............................................................. $19,472,329 Aggregate costs ................................................................ 19,990,261 (517,932) Unrealized depreciation of assets ................................................ (2,071,049) Total income ....................................................................... 3,057,436 EXPENSES Benefit payments to participants or beneficiaries .................................. 1,636,634 Account maintenance fees ........................................................... 7,822 Total expenses ..................................................................... 1,644,456 NET INCOME ......................................................................... 1,412,980 TRANSFERS Transfers into fund ................................................................ 53,213,983 Transfers out of fund .............................................................. (6,630,414) Net transfers ...................................................................... 46,583,569 NET ASSETS AT BEGINNING OF YEAR .................................................... - NET ASSETS AT END OF YEAR .......................................................... $47,996,549 /TABLE LONG-TERM GROWTH INVESTMENT STRATEGY STATEMENT OF FINANCIAL CONDITION
December 31, 1994 ASSETS Receivables: Income ......................................................................................... $ 24,432 General investments: Value of unallocated insurance and financial institution contracts ............................. 4,048,004 Mutual funds ................................................................................... 34,665,513 Total general investments .................................................................. 38,713,517 Total assets ..................................................................................... 38,737,949 LIABILITIES ...................................................................................... - NET ASSETS ....................................................................................... $38,737,949
STATEMENT OF INCOME AND CHANGES IN NET ASSETS
1994 INCOME Contributions received from participants ........................................... $ 4,745,194 Earnings on investments: Interest ......................................................................... 219,246 Dividends ........................................................................ 951,118 Net gain (loss) on sale of assets: Aggregate proceeds ............................................................. $10,955,739 Aggregate costs ................................................................ 11,331,090 (375,351) Unrealized depreciation of assets ................................................ (1,701,324) Total income ....................................................................... 3,838,883 EXPENSES Benefit payments to participants or beneficiaries .................................. 1,320,940 Account maintenance fees ........................................................... 6,832 Total expenses ..................................................................... 1,327,772 NET INCOME ......................................................................... 2,511,111 TRANSFERS Transfers into fund ................................................................ 41,977,455 Transfers out of fund .............................................................. (5,750,617) Net transfers ...................................................................... 36,226,838 NET ASSETS AT BEGINNING OF YEAR .................................................... - NET ASSETS AT END OF YEAR .......................................................... $38,737,949 /TABLE ATTACHMENT: Schedule 1 FORM 5500: Line 27 (a) FLORIDA POWER & LIGHT COMPANY EIN 59-0247775 EMPLOYEE THRIFT AND RETIREMENT SAVINGS PLAN FOR THE BARGAINING UNIT EMPLOYEES OF FLORIDA POWER & LIGHT COMPANY PLAN #003 PLAN YEAR: 1994 ASSETS HELD FOR INVESTMENT AS OF DECEMBER 31, 1994
Historic Current Units Fund Name Price Cost Value 40,811,428.840 FPL Managed Income Portfolio $ 1.00 $ 40,811,429 $ 40,811,429 11,184,391.263 FPL Company Stock Fund $ 9.47 87,255,027 105,916,185 2,292,759.239 FPL Company Stock Fund - LESOP $ 9.52 20,454,332 21,827,068 356,717.996 Conservative Investment Strategy $10.11 3,560,115 3,606,419 1,308,147.937 Moderate Growth Investment Strategy $ 9.88 13,042,529 12,924,502 1,024,933.345 Long-Term Investment Strategy $ 9.83 10,253,938 10,075,095 266,115.135 Fidelity Magellan Fund $66.80 19,447,647 17,776,491 342,632.468 Fidelity OTC Portfolio $23.27 8,456,067 7,973,058 304,634.880 Fidelity Overseas Fund $27.30 8,679,110 8,316,532 1,355,188.500 Fidelity Retirement Government Money Market Portfolio $ 1.00 1,355,188 1,355,188 1,205,929.892 Fidelity U.S. Equity Index Portfolio $16.91 20,791,172 20,392,274 457,707.040 Fidelity U.S. Bond Index Portfolio $ 9.97 4,849,167 4,563,339 Outstanding Loan Balances (7.5% to 11.5%; 16,730,150 16,730,150 maturing 1995-1999) Total Assets Held for Investment $255,685,871 $272,267,730 /TABLE ATTACHMENT: Schedule 2 FORM 5500: Line 27 (d) FLORIDA POWER & LIGHT COMPANY EIN 59-0247775 EMPLOYEE THRIFT AND RETIREMENT SAVINGS PLAN FOR THE BARGAINING UNIT EMPLOYEES OF FLORIDA POWER & LIGHT COMPANY PLAN #003 PLAN YEAR: 1994 TRANSACTIONS IN EXCESS OF FIVE PERCENT OF THE CURRENT VALUE OF PLAN ASSETS FOR THE YEAR ENDED DECEMBER 31, 1994
Transaction by Total Total Number of Number Realized Fund or Carrier Purchases Sales Purchases of Sales Gain (Loss) FPL Managed Income Fund $13,505,982 $ 37,944,569 202 201 - FPL Company Stock Fund $13,302,242 $ 38,025,719 205 201 $5,219,866 FPL Company Stock Fund - LESOP $ 4,828,155 $ 1,070,329 179 178 $ (48,115) Conservative Investment Strategy $ 4,416,165 $ 850,036 82 53 $ (6,014) Moderate Growth Investment Strategy $15,056,172 $ 1,969,627 163 140 $ (44,016) Long-Term Investment Strategy $12,128,429 $ 1,826,002 156 134 $ (48,488) Fidelity Magellan Fund $22,624,532 $ 2,946,433 205 195 $ (230,452) Fidelity OTC Portfolio $ 9,935,573 $ 1,380,856 200 185 $ (98,650) Fidelity Overseas Fund $10,020,214 $ 1,337,057 200 184 $ (4,048) Fidelity U.S. Equity Index Portfolio $ 8,602,053 $ 21,107,467 207 202 $ 58,825 Fidelity U.S. Bond Index Portfolio $ 5,773,086 $ 888,998 183 152 $ (34,920) /TABLE SIGNATURES The Plan. Pursuant to the requirements of the Securities and Exchange Act of 1934, the Employee Benefits Plan Administrative Committee has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. DATE: June 28, 1995 Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of Florida Power & Light Company (Name of Plan) By: JIM K. PETERSON Jim K. Peterson Director of Compensation and Benefits EX-23 2 INDEPENDENT AUDITORS' CONSENT EXHIBIT 23 INDEPENDENT AUDITORS' CONSENT We consent to the incorporation by reference in Post-Effective Amendment No. 2 to Registration Statement No. 33-33215 on Form S-8 of our report dated June 26, 1995 on the financial statements of the Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of Florida Power & Light Company for the year ended December 31, 1994 appearing in this Annual Report on Form 11-K of FPL Group, Inc. for the year ended December 31, 1994. DELOITTE & TOUCHE LLP Miami, Florida June 28, 1995 -----END PRIVACY-ENHANCED MESSAGE-----