-----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, RIPcoyzXvI9XS4be/7JPeuUtNKu8L40ZPeolyCyi/z34z3TkTeipfhiizIUyN8CU FBc0AWzGvE0xGQBQFipljw== 0000753308-96-000021.txt : 19960701 0000753308-96-000021.hdr.sgml : 19960701 ACCESSION NUMBER: 0000753308-96-000021 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960628 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: 96587686 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 12/31/95 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, 1995 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, 1995 and 1994, and the related statement of income and changes in net assets for the year ended December 31, 1995. 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, 1995 and 1994 and its income and changes in net assets for the year ended December 31, 1995 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, 1995, and (2) transactions in excess of five percent of the current value of plan assets for the year ended December 31, 1995, 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 1995 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 24, 1996 EMPLOYEE THRIFT AND RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES OF FLORIDA POWER & LIGHT COMPANY STATEMENTS OF FINANCIAL CONDITION
December 31, 1995 1994 ASSETS Receivables: Income ......................................................................... $ 975 $ 1,000 Total receivables .......................................................... 975 1,000 General investments: Interest-bearing cash .......................................................... 2,079,646 1,355,188 Loans to participants - other .................................................. 19,366,022 16,730,150 Value of interest in master trusts ............................................. 81,833,417 69,133,743 Value of interest in registered investment companies ........................... 85,254,648 59,021,694 Total general investments .................................................. 188,533,733 146,240,775 Employer securities: Employer securities held by the Plan ........................................... 159,521,957 126,026,955 Leveraged ESOP employer securities (allocated to the Plan) ..................... 135,163,804 108,031,583 Total employer securities .................................................. 294,685,761 234,058,538 Total assets ..................................................................... 483,220,469 380,300,313 LIABILITIES Operating payables ............................................................... 359,848 362,063 Acquisition indebtedness (Leveraged ESOP loan allocated to the Plan) ............. 104,266,546 104,908,423 Total liabilities ................................................................ 104,626,394 105,270,486 NET ASSETS ....................................................................... $378,594,075 $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 STATEMENT OF INCOME AND CHANGES IN NET ASSETS
Year ended December 13, 1995 INCOME Contributions: Received from employer ......................................................... $ 904,257 Received from participants ..................................................... 14,667,651 Noncash contributions (from employer) .......................................... 5,367,576 Total contributions .......................................................... $ 20,939,484 Earnings on investments: Interest: Interest-bearing cash ........................................................ 102,809 Other loans (participant loans) .............................................. 1,485,417 Total interest ............................................................. 1,588,226 Common stock dividends ......................................................... 6,130,408 Net gain on sale of assets: Aggregate proceeds ........................................................... 26,237,003 Aggregate carrying amount .................................................... 23,976,242 Net gain on sale of assets ................................................. 2,260,761 Unrealized appreciation of assets .............................................. 36,893,117 Net investment gain from master trusts ......................................... 9,285,093 Net investment gain from registered investment companies ....................... 18,849,236 Total income ..................................................................... 95,946,325 EXPENSES Benefit payment and payments to provide benefits: Directly to participants or beneficiaries ...................................... 19,845,813 Total payments to provide benefits ........................................... 19,845,813 Administrative expenses: Contract administrator fees .................................................... 76,255 Total administrative expenses ................................................ 76,255 Total expenses ................................................................... 19,922,068 NET INCOME ....................................................................... 76,024,257 TRANSFERS Transfers from the Plan .......................................................... (236,297) Effect of current year Leveraged ESOP activity ................................... 27,776,288 Total transfers to the Plan ...................................................... 27,539,991 NET ASSETS AT DECEMBER 31, 1994 .................................................. 275,029,827 NET ASSETS AT DECEMBER 31, 1995 .................................................. $378,594,075
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, 1995 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. Fidelity Management Trust Company (Trustee) administers 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 1995 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. Effective for the 1996 plan year, the Company instituted a Flexible Dividend Program which enables participants to choose how their dividends on certain shares of Common Stock held in the Plan are to be paid. Dividends on Common Stock acquired through the Leveraged ESOP do not qualify under this new program. The options available to participants include having dividends paid in cash; having dividends paid in cash and an equivalent amount of compensation contributed to their thrift plan account; or taking a partial distribution with the balance reinvested in Common Stock. Prior to this new program, all dividends on stock in the FPL Group Company Stock Fund were reinvested in Company Stock. Contributions, Loans, Withdrawals and Transfers to (from) the Plan For most of the year, the Plan provided for basic contributions by eligible employees in whole percentages from 1% to 6% of their base compensation (Earnings), which is matched in part by the Company with shares of Common Stock. For basic Tax Saver or After Tax Contributions, the Company match is 100% on the first 3% of a Member's Earnings and 50% on the next 3%. The Plan also provided for supplemental contributions by Members to be made in whole percentages from 1% to 10% of their Earnings, bringing the total maximum contributions to 16%. Commencing in November 1995, an additional 1% of Earnings may be contributed as a basic contribution, and will be matched 25% by the Company. Permitted supplemental contributions are reduced to a maximum of 9%, so that the total maximum contributions remains at 16%. 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 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 3,948. 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 and completed five years of service while a Member will be permitted to transfer all or any portion of 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 his or her employment under certain conditions. At December 31, 1995, the loan interest rate was 9.75%. 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 transferring between bargaining unit and non-bargaining unit status while employed at FPL. 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 .................................................. $ 3,286 $ 2,311 $ 975 Employer securities ............................................... 455,096,982 319,933,178 135,163,804 Total assets .................................................... 455,100,268 319,935,489 135,164,779 Acquisition indebtedness .......................................... 347,787,013 243,520,467 104,266,546 Interest payable .................................................. 1,200,294 840,446 359,848 Total liabilities ............................................... 348,987,307 244,360,913 104,626,394 Net assets - end .................................................. $106,112,961 $ 75,574,576 $ 30,538,385 Contributions received from employer .............................. $ 19,238,903 Interest income ................................................... 12,260 Dividends ......................................................... 17,671,130 Net gain on sale of assets (1) .................................... 1,395,644 Unrealized appreciation of assets ................................. 110,400,885 Total income .................................................... 148,718,822 Interest expense .................................................. 34,065,446 Net income ........................................................ 114,653,376 $ 80,280,294 $ 34,373,082 Distribution of shares to plans ................................... (17,840,406) (12,472,830) (5,367,576) Transfers to (from) plan .......................................... - 1,229,218 (1,229,218) Effect of current year Leveraged ESOP activity on net assets ...... 96,812,970 69,036,682 27,776,288 Net assets - beginning ............................................ 9,299,991 6,537,894 2,762,097 Net assets - end .................................................. $106,112,961 $ 75,574,576 $ 30,538,385 (1) Primarily represents the increase 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 released as collateral and becomes available to satisfy matching contributions and dividend requirements of the Plan. During 1995, 561,302 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: 1996 - $5,532,000; 1997 - $7,032,000; 1998 - $8,705,000; 1999 - $10,568,000; 2000 - $12,640,000 and thereafter - $303,310,000. 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 1995, such dividends received totaled approximately $21,250,000 and cash contributions from FPL Group totaled approximately $19,239,000. 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. Dividend income earned by the Plan results from dividends 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, 1995 1994 Interest-bearing cash: Fidelity Retirement Government Money Market Portfolio ........................... $ 2,079,646 $ 1,355,188 Value of interest in Master Trusts: Conservative Investment Strategy ................................................ $ 4,183,991 $ 3,606,419 Moderate Growth Investment Strategy ............................................. 16,558,254 12,924,502 Long-term Growth Investment Strategy ............................................ 13,127,656 10,075,095 Short-term liquid investments maintained in FPL Group Company Stock Fund ........ 3,255,550 1,716,298 Managed Income Portfolio ........................................................ 44,707,966 40,811,429 $ 81,833,417 $ 69,133,743 Value of interest in registered investment companies: Fidelity U.S. Bond Index Portfolio .............................................. $ 5,322,977 $ 4,563,339 Fidelity U.S. Equity Index Portfolio ............................................ 29,041,073 20,392,274 Fidelity Magellan Fund .......................................................... 29,758,215 17,776,491 Fidelity OTC Portfolio .......................................................... 13,535,877 7,973,058 Fidelity Overseas Fund .......................................................... 7,596,506 8,316,532 $ 85,254,648 $ 59,021,694 FPL Group Company Stock Fund ...................................................... $159,521,957 $126,026,955
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 ........................................... $ (44,543) $ 147,581 $ 1,115,180 $ 1,125,351 Interest and dividends .................................. 109,476 13,414 84,104 110,199 Net investment gain from master trusts .................. - 593,368 3,109,151 2,722,766 Net investment gain from registered investment companies. - - - - Total income .......................................... 64,933 754,363 4,308,435 3,958,316 EXPENSES Benefit payment and payments to provide benefits ........ 468,395 197,466 930,909 504,105 Administrative expenses ................................. 2,152 849 2,712 2,247 Total expenses ........................................ 470,547 198,315 933,621 506,352 NET INCOME (LOSS) ....................................... (405,614) 556,048 3,374,814 3,451,964 TRANSFERS Net transfers to (from) the Plan ........................ 136,740 (8,187) 40,399 (149,566) Net exchanges between investment funds .................. 1,013,257 160,405 526,377 (113,198) Net participant loan activity ........................... (19,925) (130,694) (307,838) (136,639) Total transfers ....................................... 1,130,072 21,524 258,938 (399,403) NET ASSETS AT DECEMBER 31, 1994 ......................... 1,355,188 3,606,419 12,924,502 10,075,095 NET ASSETS AT DECEMBER 31, 1995 ......................... $2,079,646 $4,183,991 $16,558,254 $13,127,656 /TABLE
Fidelity Fidelity Managed U.S. Bond U.S. Equity Fidelity Income Index Index Magellan Portfolio Portfolio Portfolio Fund INCOME Contributions ....................................... $ 2,521,606 $ 434,848 $ 2,010,629 $ 2,265,719 Interest and dividends .............................. 249,326 36,749 223,345 204,087 Net investment gain from master trusts .............. 2,859,808 - - - Net investment gain from registered investment companies .............................. - 823,106 7,575,807 6,673,318 Total income ...................................... 5,630,740 1,294,703 9,809,781 9,143,124 EXPENSES Benefit payment and payments to provide benefits .... 3,508,597 211,516 1,207,589 1,033,607 Administrative expenses ............................. 9,627 9,669 25,318 11,674 Total expenses .................................... 3,518,224 221,185 1,232,907 1,045,281 NET INCOME (LOSS) ................................... 2,112,516 1,073,518 8,576,874 8,097,843 TRANSFERS Net transfers to (from) the Plan .................... 350,656 (34,210) (200,819) (130,584) Net exchanges between investment funds .............. 2,277,826 (211,510) 789,123 4,393,792 Net participant loan activity ....................... (844,461) (68,160) (516,379) (379,327) Total transfers ................................... 1,784,021 (313,880) 71,925 3,883,881 NET ASSETS AT DECEMBER 31, 1994 ..................... 40,811,429 4,563,339 20,392,274 17,776,491 NET ASSETS AT DECEMBER 31, 1995 ..................... $44,707,966 $5,322,977 $29,041,073 $29,758,215
Fidelity Fidelity FPL Group OTC Overseas Company Portfolio Fund Stock Fund INCOME Contributions ....................................................... $ 1,068,818 $ 1,010,816 $ 9,283,479 Interest and dividends .............................................. 98,053 97,815 6,492,066 Net gain on sale of assets .......................................... - - 2,260,761 Unrealized appreciation of assets ................................... - - 36,893,117 Net investment gain from master trusts .............................. - - - Net investment gain from registered investment companies ............ 3,097,343 679,662 - Total income ...................................................... 4,264,214 1,788,293 54,929,423 EXPENSES Benefit payment and payments to provide benefits .................... 559,418 498,425 9,649,110 Administrative expenses ............................................. 533 810 10,664 Total expenses .................................................... 559,951 499,235 9,659,774 NET INCOME (LOSS) ................................................... 3,704,263 1,289,058 45,269,649 TRANSFERS Net transfers to (from) the Plan .................................... (82,050) (37,418) (182,642) Net exchanges between investment funds .............................. 2,090,292 (1,884,194) (9,042,170) Net participant loan activity ....................................... (149,686) (87,472) (1,010,583) Total transfers ................................................... 1,858,556 (2,009,084) (10,235,395) NET ASSETS AT DECEMBER 31, 1994 ..................................... 7,973,058 8,316,532 127,743,253 NET ASSETS AT DECEMBER 31, 1995 ..................................... $13,535,877 $ 7,596,506 $162,777,507
7. Income Taxes In June 1996, FPL received from the Internal Revenue Service (IRS) a favorable determination that the Plan, as amended and restated through January 1, 1995, met the requirements of Section 401 of the Code. The Trust established under the Plan 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. 8. 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. 9. Master Trusts A summary of participating interest in and financial statements for the Master Trusts follow.
Percent of Interest in Master Trust December 31, 1995 1994 MANAGED INCOME PORTFOLIO FPL Group Employee Thrift Plan EIN 59-0247775 PN 002 ............................................................................... 76.9% 76.6% Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of Florida Power & Light Company EIN 59-0247775 PN 003 ............................................................................... 23.1% 23.4% CONSERVATIVE INVESTMENT STRATEGY FPL Group Employee Thrift Plan EIN 59-0247775 PN 002 ............................................................................... 80.9% 81.6% Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of Florida Power & Light Company EIN 59-0247775 PN 003 ............................................................................... 19.1% 18.4% MODERATE GROWTH INVESTMENT STRATEGY FPL Group Employee Thrift Plan EIN 59-0247775 PN 002 ............................................................................... 72.8% 73.0% Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of Florida Power & Light Company EIN 59-0247775 PN 003 ............................................................................... 27.2% 27.0% LONG-TERM GROWTH INVESTMENT STRATEGY FPL Group Employee Thrift Plan EIN 59-0247775 PN 002 ............................................................................... 74.1% 73.9% Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of Florida Power & Light Company EIN 59-0247775 PN 003 ............................................................................... 25.9% 26.1% /TABLE MANAGED INCOME PORTFOLIO STATEMENT OF FINANCIAL CONDITION
December 31, 1995 ASSETS General investments: Value of unallocated insurance and financial institution contracts .............................. $193,915,147 Total assets ...................................................................................... 193,915,147 LIABILITIES ....................................................................................... - NET ASSETS ........................................................................................ $193,915,147
STATEMENT OF INCOME AND CHANGES IN NET ASSETS
1995 INCOME Contributions received from participants ............................................ $ 7,751,774 Earnings on investments: Interest .......................................................................... 13,058,214 Total income ........................................................................ 20,809,988 EXPENSES Benefit payments to participants or beneficiaries ................................... 19,380,703 Account maintenance fees ............................................................ 24,338 Total expenses ...................................................................... 19,405,041 NET INCOME .......................................................................... 1,404,947 TRANSFERS Transfers into fund ................................................................. 20,039,323 Transfers out of fund ............................................................... (2,156,582) Net transfers ....................................................................... 17,882,741 NET ASSETS AT BEGINNING OF YEAR ..................................................... 174,627,459 NET ASSETS AT END OF YEAR ........................................................... $193,915,147 /TABLE CONSERVATIVE INVESTMENT STRATEGY STATEMENT OF FINANCIAL CONDITION
December 31, 1995 ASSETS Receivables: Income .......................................................................................... $ 97,323 General investments: Value of unallocated insurance and financial institution contracts .............................. 11,125,422 Mutual funds .................................................................................... 10,659,174 Total general investments ................................................................... 21,784,596 Total assets ...................................................................................... 21,881,919 LIABILITIES ....................................................................................... 695 NET ASSETS ........................................................................................ $21,881,224
STATEMENT OF INCOME AND CHANGES IN NET ASSETS
1995 INCOME Contributions received from participants ............................................ $ 590,650 Earnings on investments: Interest .......................................................................... 694,887 Dividends ......................................................................... 620,335 Net gain (loss) on sale of assets: Aggregate proceeds .............................................................. $5,809,431 Aggregate costs ................................................................. 5,332,919 476,512 Unrealized appreciation of assets ................................................. 1,295,590 Total income ........................................................................ 3,677,974 EXPENSES Benefit payments to participants or beneficiaries ................................... 1,417,585 Account maintenance fees ............................................................ 3,552 Total expenses ...................................................................... 1,421,137 NET INCOME .......................................................................... 2,256,837 TRANSFERS Transfers into fund ................................................................. 4,712,732 Transfers out of fund ............................................................... (4,758,100) Net transfers ....................................................................... (45,368) NET ASSETS AT BEGINNING OF YEAR ..................................................... 19,669,755 NET ASSETS AT END OF YEAR ........................................................... $21,881,224 /TABLE MODERATE GROWTH INVESTMENT STRATEGY STATEMENT OF FINANCIAL CONDITION
December 31, 1995 ASSETS Receivables: Income .......................................................................................... $ 163,111 Other ........................................................................................... 55,111 Total receivables ............................................................................. 218,222 General investments: Value of unallocated insurance and financial institution contracts .............................. 13,476,054 Mutual funds .................................................................................... 47,463,369 Total general investments ................................................................... 60,939,423 Total assets ...................................................................................... 61,157,645 LIABILITIES ....................................................................................... 189,645 NET ASSETS ........................................................................................ $60,968,000
STATEMENT OF INCOME AND CHANGES IN NET ASSETS
1995 INCOME Contributions received from participants ............................................ $ 3,712,529 Earnings on investments: Interest .......................................................................... 896,096 Dividends ......................................................................... 2,494,287 Net gain (loss) on sale of assets: Aggregate proceeds .............................................................. $6,995,768 Aggregate costs ................................................................. 6,475,707 520,061 Unrealized appreciation of assets ................................................. 7,621,084 Total income ........................................................................ 15,244,057 EXPENSES Benefit payments to participants or beneficiaries ................................... 2,399,185 Account maintenance fees ............................................................ 10,836 Total expenses ...................................................................... 2,410,021 NET INCOME .......................................................................... 12,834,036 TRANSFERS Transfers into fund ................................................................. 8,036,292 Transfers out of fund ............................................................... (7,898,877) Net transfers ....................................................................... 137,415 NET ASSETS AT BEGINNING OF YEAR ..................................................... 47,996,549 NET ASSETS AT END OF YEAR ........................................................... $60,968,000 /TABLE LONG-TERM GROWTH INVESTMENT STRATEGY STATEMENT OF FINANCIAL CONDITION
December 31, 1995 ASSETS Receivables: Income .......................................................................................... $ 64,372 Other ........................................................................................... 9,816 Total receivables ............................................................................. 74,188 General investments: Value of unallocated insurance and financial institution contracts .............................. 4,332,541 Mutual funds .................................................................................... 46,383,613 Total general investments ................................................................... 50,716,154 Total assets ...................................................................................... 50,790,342 LIABILITIES ....................................................................................... 44,815 NET ASSETS ........................................................................................ $50,745,527
STATEMENT OF INCOME AND CHANGES IN NET ASSETS
1995 INCOME Contributions received from participants ............................................ $ 4,596,955 Earnings on investments: Interest .......................................................................... 293,044 Dividends ......................................................................... 2,011,894 Net gain (loss) on sale of assets: Aggregate proceeds .............................................................. $7,814,678 Aggregate costs ................................................................. 7,170,423 644,255 Unrealized appreciation of assets ................................................. 7,451,382 Total income ........................................................................ 14,997,530 EXPENSES Benefit payments to participants or beneficiaries ................................... 2,337,892 Account maintenance fees ............................................................ 9,544 Total expenses ...................................................................... 2,347,436 NET INCOME .......................................................................... 12,650,094 TRANSFERS Transfers into fund ................................................................. 8,236,819 Transfers out of fund ............................................................... (8,879,335) Net transfers ....................................................................... (642,516) NET ASSETS AT BEGINNING OF YEAR ..................................................... 38,737,949 NET ASSETS AT END OF YEAR ........................................................... $50,745,527 /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: 1995 ASSETS HELD FOR INVESTMENT AS OF DECEMBER 31, 1995
Historic Current Units Fund Name Price Cost Value 44,707,966.460 FPL Managed Income Portfolio $ 1.00 $ 44,707,966 $ 44,707,966 10,419,281.677 FPL Company Stock Fund $12.46 84,231,728 129,824,250 2,627,851.466 FPL Company Stock Fund - LESOP $12.54 24,275,566 32,953,257 355,177.517 Conservative Investment Strategy $11.78 3,613,044 4,183,991 1,348,392.012 Moderate Growth Investment Strategy $12.28 13,797,804 16,558,254 1,050,212.415 Long-Term Investment Strategy $12.50 10,844,803 13,127,656 346,106.252 Fidelity Magellan Fund $85.98 26,921,016 29,758,215 446,286.738 Fidelity OTC Portfolio $30.33 11,911,541 13,535,877 261,317.712 Fidelity Overseas Fund $29.07 7,418,155 7,596,506 2,079,646.250 Fidelity Retirement Government Money Market Portfolio $ 1.00 2,079,646 2,079,646 1,286,711.250 Fidelity U.S. Equity Index Portfolio $22.57 23,100,286 29,041,073 486,116.642 Fidelity U.S. Bond Index Portfolio $10.95 5,149,424 5,322,977 Outstanding Loan Balances (7.5% to 11.5%; 19,366,022 19,366,022 maturing 1996-2000) Total Assets Held for Investment $277,417,001 $348,055,690 /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: 1995 TRANSACTIONS IN EXCESS OF FIVE PERCENT OF THE CURRENT VALUE OF PLAN ASSETS FOR THE YEAR ENDED DECEMBER 31, 1995
Transaction by Total Total Number of Number Realized Fund or Carrier Purchases Sales Purchases of Sales Gain (Loss) FPL Managed Income Fund $20,515,878 $16,619,341 250 246 - FPL Company Stock Fund $15,570,504 $23,119,364 252 252 $4,525,560 Fidelity Magellan Fund $16,433,338 $ 9,479,567 249 242 $ 519,598 /TABLE SIGNATURES The Plan. Pursuant to the requirements of the Securities 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, 1996 Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of Florida Power & Light Company (Name of Plan) By: DENNIS P. COYLE Dennis P. Coyle General Counsel and Secretary 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 24, 1996 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, 1995 appearing in this Annual Report on Form 11-K of FPL Group, Inc. for the year ended December 31, 1995. DELOITTE & TOUCHE LLP Miami, Florida June 28, 1996 -----END PRIVACY-ENHANCED MESSAGE-----