<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________
FORM 11-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (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)
For the transition period from ________ to ________
Commission file number 33-39034
A. Full title of the plan and address of the plan, if different from
that of the issuer named below:
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
HBO & Company
301 Perimeter Center North
Atlanta, Georgia 30346
(404) 393-6000
Page 1 of 21 Pages
<PAGE>
HBO & COMPANY
PROFIT SHARING AND SAVINGS PLAN
Financial Statements with Supplementary Schedules
December 31, 1994 and 1993
Page 2 of 21 Pages
<PAGE>
[SNYDER, CAMP, STEWART & CO.
LETTERHEAD]
INDEPENDENT AUDITORS' REPORT
Administrative Committee
HBO & Company Profit Sharing and Savings Plan
Atlanta, Georgia
We have audited the accompanying statement of net assets available for
benefits of HBO & Company Profit Sharing and Savings Plan as of December 31,
1994, and the related statement of changes in net assets available for
benefits for the year then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audit. The financial
statements of HBO & Company Profit Sharing and Savings Plan as of December
31, 1993 were audited by other auditors whose report dated June 2, 1994,
expressed an unqualified opinion on those statements.
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 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 benefits of HBO & Company
Profit Sharing and Savings Plan at December 31, 1994, and the changes in net
assets available for benefits for the year then ended, in conformity with
generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the
financial statements taken as a whole. The supplemental schedules of
investments, plan assets and liabilities by investment program, and
transactions or series of transactions in excess of 5% 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 financial
statements but are supplementary information required by the Securities and
Exchange Commission and the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The supplemental schedules have been subjected to the auditing
procedures applied in our audit of the financial statements and, in our
opinion, are fairly stated in all material respects in relation to the
financial statements taken as a whole.
/s/ Snyder, Camp, Stewart & Co.
June 7, 1995
Page 3 of 21 Pages
<PAGE>
[PITTS COMPANY LETTERHEAD]
REPORT OF INDEPENDENT AUDITORS
Administrative Committee
HBO & Company Profit Sharing and Savings Plan
We have audited the accompanying statement of financial condition of HBO &
Company Profit Sharing and Savings Plan (the "Plan") as of December 31, 1993,
and the related statements of income and changes in plan equity for the year
then ended. These financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these financial
statements based on our 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 management, as well as evaluating the overall
financial statement presentation. We believe that our audit provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of HBO & Company Profit Sharing
and Savings Plan at December 31, 1993, and the income and changes in plan
equity for the year then ended, in conformity with generally accepted
accounting principles.
Our audit was performed for the purpose of forming an opinion on the
financial statements taken as a whole. The accompanying supplemental
schedules of investments, plan assets and liabilities by investment program,
and transactions or series of transactions in excess of 5% of the current
value of plan assets for the year ended December 31, 1993, are presented for
purposes of complying with the applicable accounting regulations of the
Securities and Exchange Commission and the Department of Labor's Rules and
Regulations for reporting and disclosure under the Employee Retirement Income
Security Act of 1974, and are not a required part of the financial
statements. The supplemental schedules have been subjected to the auditing
procedures applied in our audit of the financial statements and, in our
opinion, are fairly stated in all material respects in relation to the
financial statements taken as a whole.
/s/ Pitts Company
PITTS COMPANY
Atlanta, Georgia
June 2, 1994
Page 4 of 21 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Statements of Net Assets Available for Benefits
December 31, 1994 and 1993
<TABLE>
<CAPTION>
1994 1993
---- ----
<S> <C> <C>
Assets:
Investments, at fair value (notes 1 and 8):
HBO & Company common stock $ 8,332,093 $ 5,349,597
Fidelity Magellan Fund 13,941,836 12,510,924
Fidelity Growth and Income Fund 9,632,962 7,879,678
Fidelity Retirement Money Market Fund 5,439,402 5,265,387
Fidelity Asset Manager 2,103,614 1,659,616
Fidelity Managed Income Fund 656,019 431,845
Fidelity Intermediate Bond Fund 678,519 566,579
----------- -----------
Total investments 40,784,445 33,663,626
Contributions receivable from employer
company 189,770 145,268
Contributions receivable from employees 466,261 340,208
Loans receivable from employees 555,268 417,655
Accrued investment income 9,696 8,722
----------- -----------
Total assets 42,005,440 34,575,479
Liabilities:
Benefits payable 864,044 38,456
----------- -----------
Net assets available for benefits $41,141,396 $34,537,023
=========== ===========
</TABLE>
See accompanying notes to financial statements.
Page 5 of 21 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Statements of Changes in Net Assets Available for Benefits
For the Years Ended December 31, 1994 and 1993
<TABLE>
<CAPTION>
1994 1993
---- ----
<S> <C> <C>
Additions to net assets attributed to:
Investment income $ 1,604,150 $ 1,895,624
Unrealized appreciation in fair value
of investments (note 8) 134,746 3,632,275
Realized gain on sale of investments
(note 8) 1,079,196 949,886
---------- ----------
Net increase from investment
activities 2,818,092 6,477,785
Contributions:
Employer 2,270,368 1,779,663
Employees 5,958,223 4,198,408
Interest income on loans to employees 33,049 2,746
---------- ----------
Total additions 11,079,732 12,458,602
Deductions from net assets attributed to:
Benefits paid directly to participants (4,475,359) (2,126,040)
---------- ----------
Net increase 6,604,373 10,332,562
Net assets available for benefits:
Beginning of year 34,537,023 24,204,461
----------- -----------
End of year $41,141,396 $34,537,023
=========== ===========
</TABLE>
See accompanying notes to financial statements.
Page 6 of 21 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Notes to Financial Statements
December 31, 1994 and 1993
(1) DESCRIPTION OF PLAN
The following description of HBO & Company Profit Sharing and Savings
Plan (the "Plan") provides only general information. The Plan
agreement should be referred to for a more complete description of
the Plan's provisions.
The Plan is a defined contribution plan which covers all employees of
HBO & Company and HBO & Company of Georgia (jointly referred to
herein as the "Company") who have completed six months of service (12
months for pre-1994 plan years) and have attained age 21 as of a Plan
entry date. The Plan's entry dates are January 1, April 1, July 1,
and October 1.
Each eligible employee can elect to defer a percentage of pretax
compensation, as defined, of from one to a maximum of fifteen percent
and may contribute such amounts to the Plan. Such deferral elections
must be made in whole percentages. If necessary, the salary deferral
contributions allowed by a participant will be reduced by the Plan's
Administrative Committee (see note 3) so that such contributions do not
cause the Plan to be discriminatory or exceed the limitations of the
Internal Revenue Code.
The Company also may contribute to the Plan at the election of the Board
of Directors through matching contributions and/or discretionary
contributions. Each participant's share of Company discretionary
contributions is related to the participant's compensation, as defined.
Company contributions may not exceed the maximum allowable as a
deduction as defined by the Internal Revenue Code. During 1994 and
1993, the Company contributed $.75 for each $1 contributed by
employees; however, this Company matching contribution was only
applicable for employee contributions of up to 4% of pretax
compensation. No Company discretionary contribution was authorized
for the years ended December 31, 1994 and 1993.
(Continued)
Page 7 of 21 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Notes to Financial Statements, Continued
December 31, 1994 and 1993
(1) DESCRIPTION OF PLAN, CONTINUED
Participants are 100% vested in their pretax compensation contributions
and earnings thereon at all times. Company matching and discretionary
contributions credited to a participant's account and earnings thereon
vest on a graded basis. A participant becomes 20% vested in his/her
Company account after three years of service and an additional 20%
becomes vested in each of the following four years until a participant
fully vests after seven years of service (see Note (4) for change in
vesting schedule effective January 1, 1995). Further, a participant is
automatically 100% vested without regard to years of service in the
event of termination due to death, disability, or attainment of age 65.
Allocation of Plan earnings/losses is based on a participant's account
balance in the respective fund. Forfeitures of terminated
participants' nonvested accounts are allocated among the remaining
participants in the Plan at the end of the plan year as if the
forfeitures are additional matching or discretionary contributions,
as designated by the Administrative Committee.
Participants have the option to direct the investment of their accounts
between seven investment funds: the Fidelity Retirement Money Market
Fund, the Fidelity Managed Income Fund, the Fidelity Intermediate Bond
Fund, the Fidelity Growth and Income Fund, the Fidelity Magellan Fund,
the Fidelity Asset Manager Fund, and HBO & Company Common Stock Fund.
Upon termination, participants under age 65 may elect to (1) delay the
distribution of his/her accounts or (2) receive his/her vested
benefits, generally in a lump sum distribution. The full value of
benefits are payable upon normal or postponed retirement or to
beneficiaries upon death of the participant. The full value of
benefits are also payable upon total or permanent disability for
participants with account balances totaling less than or equal to
$3,500 and upon request or upon obtaining age 65 for participants
with account balances totaling more than $3,500.
Under a provision of the Plan, the Company, through actions of its Board
of Directors, reserves the right to terminate the Plan. If the Plan
is terminated, each participant shall become fully vested as of the
termination date.
(Continued)
Page 8 of 21 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Notes to Financial Statements, Continued
December 31, 1994 and 1993
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting records of the Plan are maintained on the accrual basis.
HBO & Company common stock and investment funds held for investment by
the Plan are stated at quoted market values from independent published
sources.
The change in the difference between current value and the cost of the
investments is reflected in the statement of changes in net assets
available for benefits as unrealized appreciation (depreciation) in
fair value of investments.
Realized gain (loss) on sale of investments is the difference between the
proceeds received and the average cost of investments sold.
The Department of Labor requires that realized and unrealized
gains/losses on Form 5500 be calculated using a revalued (annually)
cost basis rather than the historical cost basis, which is in
accordance with generally accepted accounting principles ("GAAP").
For this reason, the financial statements prepared in accordance with
GAAP differ from the financial information included in the Form 5500.
Additionally, the Form 5500 classifies the income from the various
investment funds differently than the financial statements prepared
in accordance with GAAP. Earnings from interest and dividends per
Form 5500 are for the HBO & Company common stock dividends and the
Fidelity Retirement Money Market Fund interest only. The interest
earnings from the remaining Fidelity funds are included on Form 5500
in the net investment gain (loss) along with the realized and
unrealized gains/losses for those funds. The realized and unrealized
gains/losses on Form 5500 is for the HBO & Company common stock only.
There is no effect on net assets available for benefits for these
differences.
(3) ADMINISTRATION
The Company's Employee Benefits Administrative Committee is the Plan
administrator. Fidelity is the Trustee, with custodial responsibility
for the Plan's assets. The Plan is liable for all administrative
expenses not paid by the Company. At the direction of the
Administrative Committee, the Plan's administrative expenses for 1994
and 1993 were paid by the Company.
(Continued)
Page 9 of 21 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Notes to Financial Statements, Continued
December 31, 1994 and 1993
(4) PLAN AMENDMENTS AND RESTATEMENT
During 1994, the Plan was amended once and restated. The following
summarizes these changes:
. Effective July 6, 1994, the Plan was amended to reflect an
accelerated vesting schedule for all employees with service on or
after January 1, 1995. A participant becomes 20% vested in
his/her Company account after one year of service and an additional
20% becomes vested in each of the following four years until a
participant fully vests after five years of service.
. Effective December 16, 1994, the Plan was restated to incorporate
all amendments since the previous restatement on June 1, 1993. As
part of this process, cash compensation was redefined and the
compensation cap was revised from $200,000 to $150,000.
(5) INCOME TAX STATUS
The Plan is intended to be qualified under the Internal Revenue Code (the
"IRC"). A favorable ruling was obtained from the Internal Revenue
Service (the "IRS") as to the tax exempt status of the Plan in November
1988. As the Plan was amended and restated as of December 16, 1994,
the Plan's Administrative Committee has applied to the IRS for
qualification under the IRC, requesting exemption from tax under
present income tax laws. As such, employees defer paying income taxes
on their before tax contributions, Company contributions, and earnings
until amounts are withdrawn from the Plan. The Administrative
Committee is not aware of any course of action or series of events
that have occurred that might disqualify the Plan from qualification
under the IRC. However, the Plan's qualified status will not be
determined until the IRS rules on the Administrative Committee's
request, and the Company is willing to make any changes in the Plan
description requested by the IRS as a condition to its issuing a
favorable determination letter.
(6) TRANSACTIONS WITH PARTIES-IN-INTEREST
During the year ended December 31, 1994, the Plan purchased 174,215
shares of the common stock of HBO & Company, the Plan sponsor, for
$1,918,526, and sold 48,122 shares of the common stock of HBO &
Company for $1,668,234 in accordance with the terms of the Plan.
During the year ended December 31, 1993, the Plan purchased 39,826 shares
of the common stock of HBO & Company, the Plan sponsor, for
$1,024,475, and sold 48,061 shares of the common stock of HBO &
Company for $1,530,608 in accordance with the terms of the Plan.
(7) INCOME AND CHANGES IN PLAN EQUITY
The Plan provides for separate investment funds for participants as
described in note 1 to the financial statements. The following pages
summarize the income and changes in net assets available for benefits
for each fund for the years ended December 31, 1994 and 1993.
(Continued)
Page 10 of 21 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Changes in Net Assets Available for Benefits
For the Year Ended December 31, 1994
<TABLE>
<CAPTION>
HBO & Fidelity Fidelity Fidelity Fidelity Fidelity
Company Fidelity Growth & Retirement Asset Managed Intermediate
Common Magellan Income Money Mkt Manager Income Bond
Stock Fund Fund Fund Fund Fund Fund Total
------- -------- -------- ---------- -------- -------- ------------ -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income $ 33,559 $ 518,519 $ 680,070 $ 221,185 $ 78,386 $ 31,526 $ 40,905 $ 1,604,150
Unrealized appreciation
(depreciation) in fair value
of investments 1,685,329 (750,568) (523,979) - (232,835) - (43,201) 134,746
Realized gain (loss) on sale
of investments 1,046,875 (8,635) 46,594 - 3,729 - (9,367) 1,079,196
---------- ---------- --------- ---------- ---------- -------- -------- -----------
Net increase (decrease) from
investment activities 2,765,763 (240,684) 202,685 221,185 (150,720) 31,526 (11,663) 2,818,092
Contributions:
Employer 317,479 892,316 594,766 151,163 205,307 44,215 65,122 2,270,368
Employees 527,935 2,125,978 1,625,354 744,298 580,439 140,957 213,262 5,958,223
Interest income on loans to
employees 8,863 8,551 5,887 6,432 1,568 1,191 557 33,049
---------- ---------- --------- ---------- ---------- -------- -------- -----------
Total additions 3,620,040 2,786,161 2,428,692 1,123,078 636,594 217,889 267,278 11,079,732
Deductions from net assets
attributed to:
Benefits expense (537,300) (1,475,636) (913,536) (1,262,399) (196,948) (35,210) (54,330) (4,475,359)
Interfund transfers (300,279) (173,667) 178,305 271,227 53,693 52,544 (81,823) -
---------- ---------- --------- ---------- ---------- -------- -------- -----------
Net increase 2,782,461 1,136,858 1,693,461 131,906 493,339 235,223 131,125 6,604,373
Net assets available for
benefits:
Beginning of year 5,436,405 12,760,584 8,084,361 5,422,862 1,790,822 456,668 585,321 34,537,023
---------- ---------- --------- ---------- ---------- -------- -------- -----------
End of year $8,218,866 $13,897,442 $9,777,822 $5,554,768 $2,284,161 $691,891 $716,446 $41,141,396
========== =========== ========== ========== ========== ======== ======== ===========
</TABLE>
Page 11 of 21 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Changes in Net Assets Available for Benefits
For the Year Ended December 31, 1994
<TABLE>
<CAPTION>
HBO & Fidelity Fidelity Fidelity Fidelity Fidelity
Company Fidelity Growth & Retirement Asset Managed Intermediate
Common Magellan Income Money Mkt Manager Income Bond
Stock Fund Fund Fund Fund Fund Fund Total
------- -------- -------- ---------- -------- -------- ------------- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income $ 39,856 $ 1,118,061 $ 426,625 $ 163,065 $ 84,411 $ 27,593 $ 36,013 $ 1,895,624
Unrealized appreciation
(depreciation) in fair value
of investment 1,813,067 1,010,045 702,027 - 99,954 - 7,182 3,632,275
Realized gain (loss) on sale
of investments 836,000 47,242 48,091 - 13,548 - 5,005 949,886
---------- ---------- ---------- ---------- ---------- -------- -------- ----------
Net increase (decrease) from
investment activities 2,688,923 2,175,348 1,176,743 163,065 197,913 27,593 48,200 6,477,785
Contributions:
Employer 192,550 700,550 505,452 245,712 78,003 23,067 34,329 1,779,663
Employees 272,827 1,538,445 1,182,992 767,176 223,333 80,422 133,213 4,198,408
Interest income on loans to
employees 732 587 483 644 63 212 25 2,746
---------- ---------- ---------- ---------- ---------- -------- -------- ----------
Total additions 3,155,032 4,414,930 2,865,670 1,176,597 499,312 131,294 215,767 12,458,602
Deductions from net assets
attributed to:
Benefits expense (144,653) (632,283) (610,435) (506,185) (132,279) (32,227) (67,978) (2,126,040)
Interfund transfers (812,531) 524,384 240,594 (1,060,958) 1,422,359 (353,800) 39,952 -
---------- ---------- ---------- ---------- ---------- -------- -------- ----------
Net increase (decrease) 2,197,848 4,307,031 2,495,829 (390,546) 1,789,392 (254,733) 187,741 10,332,562
Net assets available for
benefits:
Beginning of year 3,238,557 8,453,553 5,588,532 5,813,408 1,430 711,401 397,580 24,204,461
---------- ---------- ---------- ---------- ---------- -------- -------- ----------
End of year $5,436,405 $12,760,584 $8,084,361 $5,422,862 $1,790,822 $456,668 $585,321 $34,537,023
========== =========== ========== ========== ========== ======== ======== ===========
</TABLE>
Page 12 of 21 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Notes to Financial Statements, Continued
December 31, 1994 and 1993
(8) INVESTMENTS
During 1994 and 1993 the Plan's investments (including investments bought
and sold as well as held during the year) appreciated (depreciated) in
fair value as follows:
<TABLE>
<CAPTION>
Net
Appreciation
(Depreciation) Fair Value
in Fair Value at End
During Year of Year
-------------- ----------
<S> <C> <C>
Year ended December 31, 1994:
Fair value as determined by quoted
market price:
HBO & Company Common Stock $ 2,732,204 $ 8,332,093
Fidelity Magellan Fund (759,203) 13,941,836
Fidelity Growth and Income Fund (477,385) 9,632,962
Fidelity Retirement Money Market
Fund - 5,439,402
Fidelity Asset Manager Fund (229,106) 2,103,614
Fidelity Managed Income Fund - 656,019
Fidelity Intermediate Bond Fund (52,568) 678,519
----------- -----------
$ 1,213,942 $40,784,445
=========== ===========
Year ended December 31, 1993:
Fair value as determined by quoted
market price:
HBO & Company Common Stock $ 2,649,066 $ 5,349,597
Fidelity Magellan Fund 1,057,287 12,510,924
Fidelity Growth and Income Fund 750,118 7,879,678
Fidelity Retirement Money Market
Fund - 5,265,387
Fidelity Asset Manager Fund 113,503 1,659,616
Fidelity Managed Income Fund - 431,845
Fidelity Intermediate Bond Fund 12,187 566,579
----------- -----------
$ 4,582,161 $33,663,626
=========== ===========
</TABLE>
The current value of HBO & Company common stock, Fidelity Magellan Fund,
Fidelity Growth and Income Fund and Fidelity Retirement Money Market
Fund held for investment at December 31, 1993 was $5,349,597,
$12,510,924, $7,879,678, and $5,265,387,respectively, each of which
represents an investment greater than 5% of the Plan's net assets.
(Continued)
Page 13 of 21 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Notes to Financial Statements, Continued
December 31, 1994 and 1993
(8) INVESTMENTS, CONTINUED
The realized gain on the sale of investments during the years ended
December 31, 1994 and 1993 was determined as follows:
<TABLE>
<CAPTION>
1994 1993
---- ----
<S> <C> <C>
Aggregate proceeds $ 8,984,898 $ 7,950,537
Aggregate cost (7,905,702) (7,000,651)
----------- -----------
Realized gain $ 1,079,196 $ 949,886
=========== ===========
During 1994 and 1993, the balance of unrealized appreciation (depreciation)
in the fair value of investments changed as follows:
Balance, December 31, 1992 $ 1,925,787
Current unrealized appreciation
of investments, net of realized
gains (losses) 3,632,275
-----------
Balance, December 31, 1993 5,558,062
Current unrealized appreciation
of investments, net of realized
gains (losses) 134,746
-----------
Balance, December 31, 1994 $ 5,692,808
===========
</TABLE>
Page 14 of 21 Pages
<PAGE>
Supplementary Information
Page 15 of 21 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Schedule I - Investments
December 31, 1994
<TABLE>
<CAPTION>
Number of
Identity Shares or Current
of Party Involved Description of Assets Units Cost Value
- ----------------- --------------------- --------- ---- -------
<C> <S> <C> <C> <C>
FIDELITY INVESTMENTS
Fidelity Magellan Fund 208,710 $ 13,336,490 $ 13,941,835
Fidelity Growth & Income Fund 456,755 9,709,558 9,632,962
Fidelity Retirement Money Market
Fund 5,439,402 5,439,402 5,439,402
Fidelity Asset Manager Fund 152,105 2,236,495 2,103,614
Fidelity Managed Income Fund 656,020 656,020 656,020
Fidelity Intermediate Bond Fund 69,025 715,768 678,519
------------ -----------
32,093,733 32,452,352
COMPANY STOCK FUND
HBO & Company Common Stock 242,388 2,997,904 8,332,093
------------ ------------
Total investments held $ 35,091,637 $ 40,784,445
============ ============
</TABLE>
December 31, 1993
<TABLE>
<CAPTION>
Number of
Identity Shares or Current
of Party Involved Description of Assets Units Cost Value
- ----------------- --------------------- --------- ---- -------
<C> <S> <C> <C> <C>
FIDELITY INVESTMENTS
Fidelity Magellan Fund 176,583 $ 11,155,011 $ 12,510,924
Fidelity Growth & Income Fund 354,621 7,432,295 7,879,678
Fidelity Retirement Money Market
Fund 5,265,387 5,265,387 5,265,387
Fidelity Asset Manager Fund 107,767 1,559,662 1,659,616
Fidelity Managed Income Fund 431,845 431,845 431,845
Fidelity Intermediate Bond Fund 52,558 560,627 566,579
------------ ------------
26,404,827 28,314,029
COMPANY STOCK FUND
HBO & Company Common Stock 116,296 1,700,737 5,349,597
------------ ------------
Total investments held $ 28,105,564 $ 33,663,626
============ ============
</TABLE>
Page 16 of 21 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Schedule II - Plan Assets and Liabilities by Investment Program
<TABLE>
<CAPTION>
HBO & Fidelity Fidelity Fidelity Fidelity Fidelity
Company Fidelity Growth & Retirement Asset Managed Intermediate
Common Magellan Income Money Mkt Manager Income Bond
Stock Fund Fund Fund Fund Fund Fund Total
------- -------- --------- ---------- -------- -------- ------------ -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
DECEMBER 31, 1994
Assets:
Investments at fair value $8,332,093 $13,941,835 $9,632,962 $5,439,402 $2,103,614 $656,020 $678,519 $40,784,445
Contributions receivable from
employer company 28,730 67,819 45,012 19,135 18,617 4,195 6,262 189,770
Contributions receivable from
employees 48,065 161,823 119,945 49,067 53,408 13,554 20,399 466,261
Loans receivable from employees 81,974 98,024 120,401 106,466 113,211 19,386 15,806 555,268
Accrued investment income 9,696 - - - - - - 9,696
---------- ----------- ---------- ---------- ---------- -------- -------- -----------
Total assets 8,500,558 14,269,501 9,918,320 5,614,070 2,288,850 693,155 720,986 42,005,440
Liabilities:
Benefits payable 281,692 372,059 140,498 59,302 4,689 1,264 4,540 864,044
---------- ----------- ---------- ---------- ---------- -------- -------- -----------
Net assets available for benefits $8,218,866 $13,897,442 $9,777,822 $5,554,768 $2,284,161 $691,891 $716,446 $41,141,396
========== =========== ========== ========== ========== ======== ======== ===========
DECEMBER 31, 1993
Assets:
Investments at fair value $5,349,597 $12,510,924 $7,879,678 $5,265,387 $1,659,616 $431,845 $566,579 $33,663,626
Contributions receivable from
employer company 15,800 55,972 38,459 22,137 8,362 1,683 2,855 145,268
Contributions receivable from
employees 21,309 142,377 93,340 49,745 20,824 4,660 7,953 340,208
Loans receivable from employees 53,558 62,192 79,450 94,021 102,020 18,480 7,934 417,655
Accrued investment income 8,722 - - - - - - 8,722
---------- ----------- ---------- ---------- ---------- -------- -------- -----------
Total assets 5,448,986 12,771,465 8,090,927 5,431,290 1,790,822 456,668 585,321 34,575,479
Liabilities:
Benefits payable 12,581 10,881 6,566 8,428 - - - 38,456
---------- ----------- ---------- ---------- ---------- -------- -------- -----------
Net assets available for benefits $5,436,405 $12,760,584 $8,084,361 $5,422,862 $1,790,822 $456,668 $585,321 $34,537,023
========== =========== ========== ========== ========== ======== ======== ===========
</TABLE>
Page 17 of 21 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Transactions or Series of Transactions in Excess of Five Percent
of the Current Value of Plan Assets
<TABLE>
<CAPTION>
Current Value
Number of Cost of Assets On Net
Identity of Description Number of Shares or Purchase Selling of Transaction Gain
Party Involved of Assets Transactions Units Price Price Assets Date (Loss)
- -------------- ----------- ------------ --------- -------- ------- ------ -------------- ------
<C> <S> <C> <C> <C> <C> <C> <C> <C>
CATEGORY (III) - A SERIES OF TRANSACTIONS IN EXCESS OF 5% OF PLAN ASSETS:
DECEMBER 31, 1994
HBO & Company Common Stock
Purchases 81 174,215 $1,918,526 $1,918,526 $1,918,526
Sales 54 48,122 $1,668,234 621,359 1,668,234 $1,046,875
Fidelity Magellan
Purchases 157 63,924 4,369,898 4,369,898 4,369,898
Sales 99 31,797 2,179,784 2,188,419 2,179,784 (8,635)
Fidelity Growth & Income Fund
Purchases 151 169,114 3,702,828 3,702,828 3,702,828
Sales 92 66,980 1,472,160 1,425,566 1,472,160 46,594
Fidelity Retirement Money Mkt Fund
Purchases 135 2,521,516 2,521,516 2,521,516 2,521,516
Sales 118 2,347,500 2,347,500 2,347,500 2,347,500 -
Fidelity Asset Manager Fund
Purchases 113 96,224 1,433,535 1,433,535 1,433,535
Sales 59 51,886 760,430 756,702 760,430 3,728
DECEMBER 31, 1993
HBO & Company Common Stock
Purchases 70 39,826 $1,024,475 $1,024,475 $1,024,475
Sales 47 48,061 $1,530,608 694,608 1,530,608 $836,000
Fidelity Magellan
Purchases 160 67,382 4,717,740 4,717,740 4,717,740
Sales 81 22,661 1,572,736 1,525,494 1,572,736 47,242
Fidelity Growth & Income Fund
Purchases 145 133,439 2,871,769 2,871,769 2,871,769
Sales 86 56,602 1,217,338 1,169,247 1,217,338 48,091
Fidelity Retirement Money Mkt Fund
Purchases 149 1,924,889 1,924,889 1,924,889 1,924,889
Sales 143 2,388,991 2,388,991 2,388,991 2,388,991 -
Fidelity Asset Manager Fund
Purchases 120 129,154 1,857,174 1,857,174 1,857,174
Sales 21 21,387 311,060 297,512 311,060 13,548
</TABLE>
Page 18 of 21 Pages
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employee benefit plan) have
duly caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
HBO & COMPANY PROFIT SHARING
AND SAVINGS PLAN
By: /s/ Jay P. Gilbertson
---------------------------
JAY P. GILBERTSON
By: /s/ Michael L. Kappel
---------------------------
MICHAEL L. KAPPEL
By: /s/ E. Christine Rumsey
---------------------------
E. CHRISTINE RUMSEY
DATE: June 26, 1995 (As Members of the Committee
----------------------------- appointed under and pursuant to
the HBO & Company Profit Sharing
and Savings Plan)
Page 19 of 21 Pages
<PAGE>
EXHIBIT 24(a)
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement
(Form S-8 No. 33-39034) pertaining to the HBO & Company Profit Sharing and
Savings Plan of our report dated June 7, 1995, with respect to the financial
statements and schedules of the HBO & Company Profit Sharing and Savings Plan
included in this Annual Report (Form 11-K) for the year ended December 31,
1994.
/s/ Snyder, Camp, Stewart & Co.
----------------------------------
SNYDER, CAMP, STEWART & CO.
Atlanta, Georgia
June 26, 1995
Page 20 of 21 Pages
<PAGE>
EXHIBIT 24(a)
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement
(Form S-8 No. 33-39034) pertaining to the HBO & Company Profit Sharing and
Savings Plan of our report dated June 2, 1994, with respect to the financial
statements and schedules of the HBO & Company Profit Sharing and Savings Plan
included in this Annual Report (Form 11-K) for the year ended December 31,
1993.
Atlanta, Georgia /s/ Pitts Company
June 23, 1995
PITTS COMPANY
Page 21 of 21 Pages
