<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 1996
Commission file number 1-14180
LORAL SAVINGS PLAN
LORAL SPACE & COMMUNICATIONS LTD.
600 Third Avenue
New York, New York 10016
<PAGE> 2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Savings
Committee has duly caused this annual report to be signed by the undersigned
thereunto duly authorized.
LORAL SAVINGS PLAN
-----------------------
(Plan)
Date: June 27, 1997 BY: STEPHEN L. JACKSON
-----------------------
Stephen L. Jackson
Committee Member
<PAGE> 3
LORAL SAVINGS PLAN
TABLE OF CONTENTS
------------------------
<TABLE>
<CAPTION>
Page
----
<S> <C>
Report of Independent Accountants' 1
Financial Statements
Statement of Net Assets Available For Benefits With Fund 2
Information As of December 31, 1996
Statement of Changes in Net Assets Available For Benefits 3
With Fund Information For the Period April 23, 1996
(inception) through December 31, 1996
Notes to Financial Statements 4
Supplemental Schedules
Item 27a - Schedule of Assets Held For Investment Purposes 11
As of December 31, 1996
Item 27d - Schedule of Reportable Transaction 12
For the Year Ended December 31, 1996
Exhibit:
Consent of Independent Accountants' 13
</TABLE>
<PAGE> 4
To the Participants and
Plan Administrator of the
Loral Savings Plan
INDEPENDENT ACCOUNTANTS' REPORT
We were engaged to audit the financial statements and supplemental
schedules of the Loral Savings Plan (the Plan) as of December 31, 1996 and for
the period April 23, 1996 (inception) to December 31, 1996. These financial
statements and schedules are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit 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 the
Plan's management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the net assets available for plan benefits of
the Plan as of December 31, 1996, and the changes in net assets available for
plan benefits for the period April 23, 1996 (inception) to December 31, 1996 in
conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the
basic financial statements taken as a whole. The supplemental information is
presented for the purpose of additional analysis and is not a required part of
the basic financial statements but is supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. The fund information in the
statement of changes in net assets available for plan benefits is presented for
purposes of additional analysis rather than to present the changes in net
assets available for plan benefits for each fund. The supplemental information
and fund information have been subjected to the auditing procedures applied in
the audit of the basic financial statements and, in our opinion, are fairly
stated in all material respects in relation to the basic financial statements
taken as a whole.
MOHLER, NIXON & WILLIAMS
Accountancy Corporation
Campbell, California
June 27, 1997
1
<PAGE> 5
LORAL SAVINGS PLAN
Statement of Net Assets Available for Benefits with Fund Information
As of December 31, 1996
(In thousands)
<TABLE>
<CAPTION>
Participant Directed
----------------------------------------------------------------------------------------------------
Retirement
Blue Chip Growth & Money
Growth Magellan Income Asset Overseas Intermediate Market
Fund Fund Portfolio Manager Fund Bond Fund Portfolio
<S> <C> <C> <C> <C> <C> <C> <C>
Assets
Investments $41,094 $6,287 $18,311 $2,380 $2,803 $1,304 $41,284
------- ------ ------- ------ ------ ------ -------
Net assets available for
benefits $41,094 $6,287 $18,311 $2,380 $2,803 $1,304 $41,284
======= ====== ======= ====== ====== ====== =======
</TABLE>
<TABLE>
<CAPTION>
Non-Participant
Participant Directed Directed
----------------------------------------- -----------------------
Blended Loral Loral Ford
Income Stock Loan Stock Stock
Fund Fund Fund Fund Fund Total
<S> <C> <C> <C> <C> <C> <C>
Assets
Investments $18,818 $99,680 $4,416 $3,173 $28,807 $268,357
------- ------- ------ ------ ------- --------
Net assets available for
benefits $18,818 $99,680 $4,416 $3,173 $28,807 $268,357
======= ======= ====== ====== ======= ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE> 6
LORAL SAVINGS PLAN
Statement of Changes in Net Assets Available for Benefits with Fund Information
For the period April 23, 1996 (inception) through December 31, 1996 (In
thousands)
<TABLE>
<CAPTION>
Participant Directed
-----------------------------------------------------------------------------
Blue Chip Growth &
Growth Magellan Income Asset Overseas
Fund Fund Portfolio Manager Fund
-------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C>
Additions
Contributions
Rollovers $ 307 $ 174 $ 262 $ 55 $ 49
Employer 9 3 13 -- 1
Participant 1,955 522 741 131 180
Investment Income
Interest and dividends -- -- -- -- --
Net investment gain (loss) from
registered investment company 2,910 46 699 157 166
Net appreciation (depreciation) in
fair value of investments 1,022 428 890 -- (15)
-------- ------- -------- ------- -------
Total Additions 6,203 1,173 2,605 343 381
-------- ------- -------- ------- -------
Deductions
Benefits paid to participants (1,242) (119) (458) (6) (6)
Administrative expenses -- -- -- -- --
-------- ------- -------- ------- -------
Total deductions (1,242) (119) (458) (6) (6)
-------- ------- -------- ------- -------
Interfund transfers 84 (48) 5,187 785 554
Transfer from Prior Plans 36,049 5,281 10,977 1,258 1,874
-------- ------- -------- ------- -------
Net increase 41,094 6,287 18,311 2,380 2,803
Net assets available for benefits at
April 23, 1996 -- -- -- -- --
-------- ------- -------- ------- -------
Net assets available for benefits at
December 31, 1996 $ 41,094 $ 6,287 $ 18,311 $ 2,380 $ 2,803
======== ======= ======== ======= =======
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
--------------------------------------------------------------------------------
Retirement
Money Blended Loral
Intermediate Market Income Stock Loan
Bond Fund Portfolio Fund Fund Fund
--------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
Additions
Contributions
Rollovers $ 5 $ 1,134 $ 45 $ 359 $ --
Employer 1 435 4 -- --
Participant 101 1,452 670 3,024 --
Investment Income
Interest and dividends -- 2,295 626 -- 178
Net investment gain (loss) from
registered investment company 52 -- -- -- --
Net appreciation (depreciation) in
fair value of investments 13 -- -- 18,331 --
------- -------- -------- -------- -------
Total Additions 172 5,316 1,345 21,714 178
------- -------- -------- -------- -------
Deductions
Benefits paid to participants (12) (1,389) (910) (1,244) (95)
Administrative expenses -- (7) -- (1) --
------- -------- -------- -------- -------
Total deductions (12) (1,396) (910) (1,245) (95)
------- -------- -------- -------- -------
Interfund transfers 3 (7,548) 376 1,175 162
Transfer from Prior Plans 1,141 44,912 18,007 78,036 4,171
------- -------- -------- -------- -------
Net increase 1,304 41,284 18,818 99,680 4,416
Net assets available for benefits at
April 23, 1996 -- -- -- -- --
------- -------- -------- -------- -------
Net assets available for benefits at
December 31, 1996 $ 1,304 $ 41,284 $ 18,818 $ 99,680 $ 4,416
======= ======== ======== ======== =======
</TABLE>
<TABLE>
<CAPTION>
Non-Participant Directed
---------------------------------------------
Loral Ford
Stock Stock
Fund Fund Total
------- -------- ---------
<S> <C> <C> <C>
Additions
Contributions
Rollovers $ -- $ -- $ 2,390
Employer 2,678 -- 3,144
Participant -- -- 8,776
Investment Income
Interest and dividends -- -- 3,099
Net investment gain (loss) from
registered investment company -- -- 4,030
Net appreciation (depreciation) in
fair value of investments 524 3,439 24,632
------- -------- ---------
Total Additions 3,202 3,439 46,071
------- -------- ---------
Deductions
Benefits paid to participants -- (490) (5,971)
Administrative expenses -- -- (8)
------- -------- ---------
Total deductions -- (490) (5,979)
------- -------- ---------
Interfund transfers (29) (701) --
Transfer from Prior Plans -- 26,559 228,265
------- -------- ---------
Net increase 3,173 28,807 268,357
Net assets available for benefits at
April 23, 1996 -- -- --
------- -------- ---------
Net assets available for benefits at
December 31, 1996 $ 3,173 $ 28,807 $ 268,357
======= ======== =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE> 7
LORAL SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. Plan Description
General
The Loral Savings Plan (the "Plan") was established on April 23, 1996
following the spin-off and formation of Loral Space & Communications Ltd.
("Loral"). It was established for the benefit of employees of certain
affiliates of Loral (collectively referred to as the "Employer"), and is
sponsored by Space Systems/Loral, Inc. ("SS/L").
In May 1996, assets from two other tax-qualified 401(k) plans - the Loral
Master Savings Plan and the Loral Aerospace Savings Plan (the "Prior
Plans") - representing participants of the Prior Plans who were affected
by the spin-off, were transferred to the Plan.
The Plan is a defined contribution plan designed to provide eligible
employees with systematic savings and tax-advantaged long-term savings for
retirement. It is subject to the provisions of the Employee Retirement
Income Security Act of 1974 ("ERISA"). Regular full-time and regular
part-time employees of the Employer are eligible to participate in the
Plan as of their date of hire.
A complete description of the Plan's provisions is contained in the Plan
document.
Investment Options
Participants may direct their contributions in 5% increments in any of the
following investment options:
Loral Stock Fund - Funds are primarily invested in Loral Space &
Communications Ltd. Common Stock ("Loral Common Stock") and are
reflected as participant directed in the accompanying financial
statements. Assets invested in the Loral Stock Fund are expressed in
units of participation rather than shares of Loral Common Stock.
Such units represent a proportionate interest in all assets of the
Loral Stock Fund, which includes Loral Common Stock and the Fidelity
Short Term Interest Fund. A net asset value per unit of
participation is determined daily for each outstanding unit of
the Loral Stock Fund.
Fidelity Blue Chip Growth Fund - Funds are invested in a diversified
portfolio of common stocks of well-known and established companies.
Fidelity Growth & Income Fund Portfolio - Funds are invested in
securities of companies that offer potential growth of earnings
while paying current dividends.
Fidelity Asset Manager - Funds are invested in stocks, bonds, and
short-term investments, both in the U.S. and abroad, to blend the
long-term performance of equity and fixed income investments.
4
<PAGE> 8
LORAL SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS - Continued
Fidelity Magellan Fund - Funds are invested for capital appreciation
in a broad range of stocks of domestic, multinational, and foreign
companies that have significant activities and interests outside the
U.S.
Fidelity Overseas Fund - Funds are invested in foreign securities
with the objective of long-term growth.
Fidelity Retirement Money Market Portfolio - Funds are invested in a
diversified portfolio of high-quality, interest-bearing, money
market instruments with short-term maturities.
Blended Income Fund - Funds are invested in guaranteed investment
contracts with various insurance companies and the Fidelity
Short-Term Interest Fund. The investment contracts have fixed rates
of interest for fixed periods of time. Certain limitations over
transfers to or from the Fund are defined by the Plan and/or the
contract. Pending the purchase of investment contracts, funds are
invested in the Fidelity Short-Term Interest Fund.
Fidelity Intermediate Bond Fund - Funds are invested in fixed income
securities which include bonds, notes, convertible bonds,
mortgage-backed and asset-backed securities, domestic and foreign
government and government agency securities, zero coupon bonds, and
short-term obligations, such as commercial paper and notes, bank
deposits and other financial institution obligations and repurchase
agreements.
The Ford Stock Fund is a carry-over fund resulting from the transfer of
assets from a prior plan. Contributions and reinvestment of dividends into
this fund are not permitted. Dividends received on Ford Common Stock are
invested in the Retirement Money Market Fund. Assets invested in the Ford
Stock Fund will be expressed in units of participation rather than shares
of Ford Common Stock. Such units represent a proportionate interest in all
assets of the Ford Stock Fund, which includes Ford Common Stock and the
Fidelity Short Term Interest Fund. A net asset value per unit of
participation will be determined daily for each outstanding unit of the
Ford Stock Fund.
As of December 31, 1996, there were approximately 3,000 participants in
the Plan, some of whom have elected to invest in more than one fund.
Participant Accounts
A participant's account is credited with (a) the participant's
contribution, (b) the employer's matching contribution and (c) an
allocation of Plan earnings, net of certain investment management fees.
Allocations are based on a participant's account balance as a percentage
of the sum of all participants' account balances.
Vesting and Forfeitures
Participants are immediately vested in their contributions plus actual
earnings thereon. Generally, participants vest 100% in employer
contributions plus actual earnings thereon after completion of five years
of service and, thereafter, vest immediately in all future employer
contributions. On termination of service due to death, disability, or
retirement, participants become fully vested. Non-vested employer
contributions are forfeited upon termination or withdrawal. These amounts
are used for certain Plan administrative expenses or to reduce
5
<PAGE> 9
LORAL SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS - Continued
future employer contributions. Forfeitures for the year ended December 31,
1996 were approximately $109,000 and will be used to reduce employer
contributions in 1997.
Contributions
The Plan has both a Tax-Efficient Savings ("TES") and a Regular Savings
feature. Under the Plan, and subject to limits imposed by the Internal
Revenue Code ("IRC"), participants may elect a reduction in eligible
salary up to 15% with a corresponding TES contribution in the same amount
made to the Plan by the Employer on their behalf. Such contributions are
excluded from the participant's taxable income. Subject to limits imposed
by the IRC, participants may also contribute up to 10% of their base
salaries to the Regular Savings feature of the Plan on an after-tax basis.
Participants' contributions are matched at a rate of $.60 for each dollar
of TES and/or Regular Savings contributions, up to 6% of a participant's
base salary, unless the Employer determines to make a lesser contribution
or no contribution. All employer matching contributions are invested in
Loral Stock and are reflected as non-participant directed in the
accompanying financial statements. Participants who are 55 years old and
have 10 years of service may direct their employer matching contributions
to any available investment option except the Ford Stock Fund.
Payment of Benefits
Upon termination, participants receive the vested portion of their account
balance as soon as practicable after termination. Terminated participants
who have an account balance in excess of $3,500 may elect to leave their
account balance in the Plan and withdraw it at any time up to age 65.
Assets in a participant's TES account may be withdrawn only for financial
hardship before termination of employment or before reaching age 59-1/2.
Financial hardship is determined pursuant to provisions of the IRC.
Generally, a 10% penalty will be imposed on certain withdrawals of pre-tax
assets made before the participant reaches age 59-1/2. After age 59-1/2.
TES assets may be withdrawn in total or in part at any time.
Assets in a participant's Regular Savings account may be withdrawn in
total or in part at any time in accordance with the Plan provisions.
Withdrawals of Ford Stock and/or Loral Stock in participants' Employer
Contribution accounts are available at the end of the two-year period
following the year in which the Employer Contributions were made, if they
are vested and the Employer Contributions were made prior to March 1,
1995. Employer Contributions made on or after March 1, 1995 must remain
invested in Loral Stock until the participant is eligible to retire or
upon termination of employment, if vested.
6
<PAGE> 10
LORAL SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS - Continued
Payment of Administrative Expenses
Most administrative expenses are paid by the Plan. The Plan permits the
Employer to use forfeitures from participants' non-vested accounts to pay
certain administrative expenses, to the extent not paid by the Employer.
Loans
The Plan permits active participants to borrow from assets in their TES
accounts that are not invested in the Blended Income Fund. The minimum
loan amount is $1,000. The maximum loan permitted is the lesser of: (1)
$50,000 minus the highest outstanding loan balance during the last twelve
months, (2) 50% of the vested account balance, or (3) the assets in the
TES Account which are eligible for a loan. The amounts in (2) and (3) are
reduced by any loan balance outstanding. Participants may have only one
outstanding loan at a time. No new loans will be made until all
outstanding loans are repaid. The interest rate for the loan is the prime
rate as defined in the Plan document. This interest rate will remain the
same for the term of the loan. Interest rates range from 6% to 10%.
The term of a loan can be up to five years except for loans to purchase a
primary residence, which can have a term of 10 years. Loan repayment is
made through payroll deductions. Repayment of the entire balance is
permitted at any time. All loan repayments are allocated to the investment
funds elected by a participant for current TES Contributions.
2. Summary of Significant Accounting Policies
Basis of Accounting
The financial statements of the Plan are prepared under the accrual method
of accounting.
Investment Valuation and Income Recognition
The Plan's investments are stated at fair value.
Investments in Loral Stock Fund and Ford Stock Fund are valued at a net
asset value per unit of participation.
Shares of registered investment company funds are valued at quoted market
prices which represent the net asset value of shares held by the Plan
at year-end.
Loans receivable from participants are valued at cost which approximates
fair value.
Guaranteed investment contracts with various insurance companies held in
the Blended Income Fund are stated at contract value as reported by the
insurance companies. Contract value represents contributions made under
the contract, plus earnings at the contract rate, less withdrawals and
expenses.
7
<PAGE> 11
LORAL SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS - Continued
The Plan presents in the statement of changes in net assets available for
the benefits the net appreciation (depreciation) in the fair value of its
investments which consists of the realized gains or losses and the
unrealized appreciation (depreciation) of those investments.
Investment transactions are accounted for on a trade date basis. Dividend
income is recorded on the ex-dividend date. Interest income is recorded
when earned.
Payment of Benefits
Benefits are recorded when paid.
Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period.
Risks and Uncertainties
The Plan provides for various investment options in any combination of
stocks, bonds, fixed income securities, mutual funds, and other investment
securities. Investment securities are exposed to various risks, such as
interest rate, market and credit. Due to the level of risk associated with
certain investment securities and the level of uncertainty related to
changes in the value of investment securities, it is at least reasonably
possible that changes in risks in the near term would materially affect
participants' account balances and the amounts reported in the statement
of net assets available for plan benefits and the statement of changes in
net assets available for plan benefits.
Financial Instruments
Fidelity may enter into forward foreign currency contracts to protect
securities and related receivables and payables against fluctuations in
future foreign currency rates. A forward contract is an agreement to buy
or sell currencies of different countries on a specified future date at a
specified rate. Risks associated with such contracts include the movement
in the value of the foreign currency relative to the U.S. dollar and the
ability of the counterparty to perform. The market value of the contract
will fluctuate with changes in currency exchange rates.
Fidelity may invest in futures and options contracts solely for the
purpose of managing its exposure to the stock and bond markets and
fluctuations in interest rates. The use of futures and options
transactions involves the risk of imperfect correlation in movements in
the price of futures and options contracts; interest rates and the
underlying hedged assets, and the possible inability of counterparties to
meet the term of their contracts. When the contract is closed, a realized
gain or loss equal to the difference between the value of the contract at
the time it was opened and the value at the time when it was closed is
recorded.
8
<PAGE> 12
LORAL SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS - Continued
3. Investments
Plan investments at December 31, 1996 were as follows (dollars in
thousands):
<TABLE>
<CAPTION>
Face Amount Fair/Contract
or Shares/Units Value Cost
--------------- ------------- -------
<S> <C> <C> <C>
Loral Stock Fund** 8,403,053 $102,853* $ 84,759
Fidelity Blue Chip Growth Fund 1,257,068 41,094* 40,062
Fidelity Magellan Fund 77,956 6,287 5,884
Fidelity Growth & Income Fund 595,870 18,311* 17,415
Fidelity Asset Manager Fund 144,473 2,380 2,389
Fidelity Overseas Fund 90,897 2,803 2,817
Fidelity Intermediate Bond Fund 129,332 1,304 1,293
Fidelity Retirement Money Market 41,284,107 41,284* 41,284
Portfolio Fund
Blended Income Fund:
Fidelity Short Term Investment Fund 6,470,336 6,470 6,470
Fidelity Internal GIC Pool 682,499 682 682
Guaranteed Investment Contracts:
Metropolitan Life Insurance Company,
7.96% maturing December 31, 1997 2,402,498 2,402 2,402
Peoples Security Life, 5.47% maturing
January 2, 1997 9,263,786 9,264 9,264
-------- --------
18,818 18,818
-------- --------
Ford Stock Fund 3,303,545 28,807* 25,320
Participant Loans 4,416
--------
$268,357
========
</TABLE>
* Represents greater than 5% of net assets available for benefits.
** Includes both participant directed and non-participant directed amounts.
9
<PAGE> 13
LORAL SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS - Continued
4. Guaranteed Investment Contracts with Insurance Companies
The Plan invests in several guaranteed investment contracts with insurance
companies, which are included in the Blended Income Fund. The guaranteed
investment contracts are stated at contract value, which approximates fair
value. The average yield for the Blended Income Fund for the period from
April 23, 1996 through December 31, 1996 was 5.8%. The crediting interest
rates of the investment contracts range from 5.47% to 7.96%.
5. Plan Termination
Although the Employer has not expressed an intent to do so, the Employer
can discontinue its contributions at any time and terminate the Plan
subject to the provisions of ERISA. In the event of a discontinuance
and/or termination of the Plan, participants will become 100% vested and
the net assets of the Plan will be allocated among the participants and
their beneficiaries in accordance with the provisions of ERISA.
6. Tax Status
The Employer intends to seek a determination from the Internal Revenue
Service that the Plan and related trust are designed in accordance with
applicable sections of the IRC.
Based upon present applicable laws and regulations, participants will not
be subject to Federal income tax on the TES contributions or Employer
contributions made on their behalf or on the earnings credited to their
account until such time as they are withdrawn.
7. Concentration of Credit Risk
At December 31, 1996, approximately 45% of the Plan's assets are invested
in Fidelity mutual funds.
8. Subsequent Event
On March 14, 1997, Loral acquired Skynet Satellite Services ("Skynet")
from AT&T. On that date, all Skynet employees were able to become
participants of the Plan.
10
<PAGE> 14
SUPPLEMENTAL SCHEDULES
<PAGE> 15
LORAL SAVINGS PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1996
(Dollars in thousands)
<TABLE>
<CAPTION>
(a) (b) Identity of Issue, borrower, (c) Description of investment including maturity d) Cost (e) Current/
lessor or similar party date, rate of interest, collateral, par or contract value
maturity value
<S> <C> <C> <C>
* Loral Stock Fund Common Stock $84,759 $102,853
Ford Stock Fund Common Stock 25,320 28,807
* Fidelity Management Trust Company Fidelity Blue Chip Growth Fund 40,062 41,094
Fidelity Growth & Income Fund 17,415 18,311
Fidelity Asset Manager Fund 2,389 2,380
Fidelity Magellan Fund 5,884 6,287
Fidelity Overseas Fund 2,817 2,803
Fidelity Retirement Money Market Portfolio 41,284 41,284
Fidelity Intermediate Bond Fund 1,293 1,304
Fidelity Short-Term Investment Fund 6,470 6,470
Fidelity Internal GIC Pool 682 682
Metropolitan Life Insurance Company Guaranteed investment contract, 7.96% maturing
December 31, 1997 2,402 2,402
Peoples Security Life Guaranteed investment contract, 5.47% maturing
January 2, 1997 9,264 9,264
* Participant loans Interest rates ranging from 6% to 10% 4,416
--------
$268,357
========
</TABLE>
* Party-in-interest
11
<PAGE> 16
LORAL SAVINGS PLAN
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
For the Year Ended December 31, 1996
(Dollars in thousands)
<TABLE>
<CAPTION>
(a) Identity of (b) Description of asset (include) (c)Total (d)Total (e)Total (f)Total (I)Net
party involved interest rate and maturity in number of number value of value of gain or
Case of loan) purchases of sales purchases sales (loss)
<S> <C> <C> <C> <C> <C> <C>
* Fidelity Management Fidelity Blue Chip Growth Fund 148 125 $44,602 $ 4,531 ($10)
Trust Company Fidelity Magellan Fund 134 91 7,613 1,755 26
Fidelity Growth & Income Portfolio 143 97 20,437 3,016 (6)
Fidelity Asset Manager 83 33 2,615 236 9
Fidelity Overseas Fund 105 41 3,218 400 (1)
Fidelity Intermediate Bond Fund 84 33 1,546 255 2
Fidelity Retirement Money Market Fund 157 149 60,292 19,007 -
Blended Income Fund 107 93 21,340 2,522 -
Ford Stock Fund Common Stock 54 56 26,559 1,191 (48)
* Loral Stock Fund Common Stock 154 126 99,259 15,261 761
</TABLE>
* Party-in-interest
12
<PAGE> 1
CONSENT OF INDEPENDENT ACCOUNTANTS
As independent public accountants, we consent to the incorporation by reference
in the registration statement of Loral Space & Communications Ltd. on Form S-8
(File No. 333-14863) of our report dated June 27, 1997, on our audit of the
financial statements and schedules of the Loral Savings Plan for the period
April 23, 1996 (inception) to December 31, 1996, which report is included in the
Annual Report on Form 11-K which is filed with the Securities and Exchange
Commission.
MOHLER, NIXON & WILLIAMS
Accountancy Corporation
Campbell, California
June 27, 1997
13
