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Previous: PRUDENTIAL HIGH YIELD FUND INC, 497, 1996-06-27 |
Next: ANALYSIS & TECHNOLOGY INC, 11-K, 1996-06-27 |
<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, 1995
-----------------
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
(770) 393-6000
Page 1 of 19 Pages
<PAGE>
HBO & COMPANY
PROFIT SHARING AND SAVINGS PLAN
Financial Statements with Supplementary Schedules
December 31, 1995 and 1994
Page 2 of 19 Pages
<PAGE>
INDEPENDENT AUDITORS' REPORT
Administrative Committee
HBO & Company Profit Sharing and Savings Plan
We have audited the accompanying statements of net assets available for
benefits of HBO & Company Profit Sharing and Savings Plan as of December 31,
1995 and 1994, and the related statements of changes in net assets available
for benefits for the years 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 audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements 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, 1995 and 1994, and the changes
in net assets available for benefits for the years then ended, 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 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 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 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.
Atlanta, Georgia
June 5, 1996
Page 3 of 19 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Statements of Net Assets Available for Benefits
December 31, 1995 and 1994
<TABLE>
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
Assets:
Investments, at fair value:
HBO & Company Common Stock Fund $ 20,386,601 $ 8,332,093
Fidelity Magellan Fund 22,325,414 13,941,836
Fidelity Growth and Income Fund 15,955,736 9,632,962
Fidelity Retirement Money Market Fund 6,044,568 5,439,402
Fidelity Asset Manager 3,173,483 2,103,614
Fidelity Managed Income Fund 1,400,057 656,019
Fidelity Intermediate Bond Fund 1,346,381 678,519
Fidelity International Growth and Income Fund 461,479 -
Fidelity Blue Chip Growth Fund 2,563,562 -
Fidelity Equity Income II Fund 1,255,847 -
-------------- ------------
Total investments 74,913,128 40,784,445
Contributions receivable from employer 278,575 189,770
Contributions receivable from participants 1,159,402 466,261
Loans receivable from participants 1,302,830 555,268
Accrued investment income 10,642 9,696
-------------- ------------
Total assets 77,664,577 42,005,440
Liabilities - -
-------------- ------------
Net assets available for benefits $ 77,664,577 $ 42,005,440
-------------- ------------
-------------- ------------
</TABLE>
See accompanying notes to financial statements.
Page 4 of 19 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Statements of Changes in Net Assets Available for Benefits
For the Years Ended December 31, 1995 and 1994
<TABLE>
<CAPTION>
1995 1994
---- -----
<S> <C> <C>
Additions to net assets attributed to:
Investment income $ 2,808,837 $ 1,604,150
Unrealized appreciation in fair value of investments 14,837,997 134,746
Realized gain on sale of investments 2,651,602 1,079,196
-------------- ------------
Net increase from investment activities 20,298,436 2,818,092
Contributions:
Employer 3,085,933 2,270,368
Participants 18,075,829 5,958,223
Interest income on loans to participants 38,051 33,049
-------------- ------------
Total additions 41,498,249 11,079,732
Deductions from net assets attributed to:
Benefits paid directly to participants (5,839,112) (3,611,315)
-------------- ------------
Net increase 35,659,137 7,468,417
Net assets available for benefits:
Beginning of year 42,005,440 34,537,023
-------------- ------------
End of year $ 77,664,577 $ 42,005,440
-------------- ------------
-------------- ------------
</TABLE>
See accompanying notes to financial statements.
Page 5 of 19 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Notes to Financial Statements
December 31, 1995 and 1994
(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 1995
and 1994, 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 contributions were authorized
for the years ended December 31, 1995 and 1994.
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 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
January 1, 1995). Prior to January 1, 1995, a participant became 20%
vested in his/her Company account after three years of service and an
additional 20% vested in each of the following four years until a
participant fully vested after seven years of service. 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.
(Continued)
Page 6 of 19 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Notes to Financial Statements, Continued
December 31, 1995 and 1994
(1) DESCRIPTION OF PLAN, CONTINUED
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
contributions, as designated by the Administrative Committee. At
December 31, 1995, forfeited nonvested accounts amounted to $194,291.
These accounts may be used to reduce future employer contributions.
Participants have the option to direct the investment of their
accounts between ten 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, the Fidelity
International Growth and Income Fund, the Fidelity Blue Chip Growth
Fund, the Fidelity Equity Income II Fund and HBO & Company Common
Stock Fund.
Participants may borrow from their fund accounts a minimum of $1,000
up to a maximum equal to the lesser of $50,000 or 50% of their vested
account balance. Loan terms range up to 5 years, except that loan
terms for the purchase of a primary residence are at the discretion of
the Administrative Committee. The loans are secured by the balance in
the participant's account and bear interest at a rate determined by
the Administrative Committee. Principal and interest are paid ratably
through monthly payroll deductions.
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.
(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. Loans receivable from participants are stated at cost which
approximates fair value.
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.
(Continued)
Page 7 of 19 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Notes to Financial Statements, Continued
December 31, 1995 and 1994
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Realized gain (loss) on sale of investments is the difference between
the proceeds received and the average cost of investments sold.
Benefits are recorded when paid. The amount of benefits approved for
payment, but not disbursed, to participants who have withdrawn from
the Plan at December 31, 1995 was $2,325.
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 result from 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. Assets that have been allocated, but not disbursed, to
participants who have withdrawn from the Plan as of year end are shown
as a liability in the Form 5500; whereas, they are not reported as a
liability in financial statements prepared in accordance with GAAP.
The preparation of financial statements in conformity with generally
accepted accounting principles requires the Plan administrator to make
estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results may differ from those
estimates.
The 1994 financial statements were restated to exclude benefits
payable from the statement of net assets available for benefits. The
effect of the restatement was to increase net assets available for
benefits by $864,044 at December 31, 1994 and to decrease benefits
paid directly to participants in 1994 by $864,044.
(3) ADMINISTRATION
The Company's Employee Benefits Administrative Committee (the
"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 1995 and 1994 were paid by the Company.
(Continued)
Page 8 of 19 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Notes to Financial Statements, Continued
December 31, 1995 and 1994
(4) PLAN AMENDMENTS AND RESTATEMENT
On December 29, 1995, the Plan was amended to reflect changes
requested by the Internal Revenue Service (the "IRS") in conjunction
with the issuance of a favorable determination letter to HBO &
Company, the Plan sponsor. These changes primarily affect deferral
elections and withdrawals. In addition, several Plan schedules were
amended to include companies purchased by the Plan sponsor during
1995.
(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 IRS as to the
tax exempt status of the Plan in October, 1995.
(6) TRANSACTIONS WITH PARTIES-IN-INTEREST
During the year ended December 31, 1995, the Plan purchased 87,631
shares of the Common Stock of HBO & Company, the Plan sponsor, for
$4,802,545, and sold 63,962 shares of the Common Stock of HBO &
Company for $2,869,992 in accordance with the terms of the Plan.
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.
(7) INVESTMENT FUNDS
The Plan provides for separate investment funds for participants as
described in note 1 to the financial statements. The following pages
summarize the net assets available for benefits and the changes in net
assets available for benefits for each fund for the years ended
December 31, 1995 and 1994.
(Continued)
Page 9 of 19 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Net Assets Available for Benefits by Investment Program
<TABLE>
<CAPTION>
HBO & Fidelity Fidelity Fidelity
Company Fidelity Growth & Retirement Asset
Common Magellan Income Money Mkt Manager
Stock Fund Fund Fund Fund
--------- ------------ ----------- --------- -----------
DECEMBER 31, 1995
<S> <C> <C> <C> <C> <C>
Assets:
Investments at fair value $20,386,601 $22,325,414 $15,955,736 $6,044,568 $3,173,483
Contributions receivable
from employer company 53,075 80,928 54,530 21,582 19,536
Contributions receivable from
participants 129,305 298,919 210,688 162,396 83,503
Loans receivable from
participants 123,605 211,690 202,271 621,060 102,667
Accrued investment income 10,642 - - - -
---------- ---------- ---------- --------- ----------
Total assets 20,703,228 22,916,951 16,423,225 6,849,606 3,379,189
Liabilities - - - - -
---------- ---------- ---------- --------- ----------
Net assets available for
benefits $20,703,228 $22,916,951 $16,423,225 $6,849,606 $3,379,189
---------- ---------- ---------- --------- ----------
---------- ---------- ---------- --------- ----------
<CAPTION>
Fidelity
Fidelity Fidelity Int'l Fidelity
Managed Intermediate Growth Blue Chip
Income Bond & Income Growth
Fund Fund Fund Fund
--------- ------------ -------- ---------
DECEMBER 31, 1995
<S> <C> <C> <C> <C>
Assets:
Investments at fair value $1,400,057 $1,346,381 $461,479 $2,563,562
Contributions receivable
from employer company 8,455 10,168 3,676 18,434
Contributions receivable from
participants 21,111 52,055 45,015 81,035
Loans receivable from
participants 23,105 29,632 856 (9,856)
Accrued investment income - - - -
----------- --------- ---------- ------------
Total assets 1,452,728 1,438,236 511,026 2,653,175
Liabilities - - - -
----------- -------- --------- ------------
Net assets available for
benefits $1,452,728 $1,438,236 $511,026 $2,653,175
----------- --------- -------- -------------
----------- --------- -------- -------------
<CAPTION>
Fidelity
Equity
Income II
Fund Total
--------- -----------
DECEMBER 31, 1995
<S> <C> <C>
Assets:
Investments at fair value $1,255,847 $74,913,128
Contributions receivable
from employer company 8,191 278,575
Contributions receivable from
participants 75,375 1,159,402
Loans receivable from
participants (2,200) 1,302,830
Accrued investment income - 10,642
------------ -----------
Total assets 1,337,213 77,664,577
Liabilities - -
------------ -----------
Net assets available for
benefits $1,337,213 $77,664,577
------------ -----------
------------ -----------
<CAPTION>
HBO & Fidelity Fidelity
Company Fidelity Growth & Retirement
Common Magellan Income Money Mkt
Stock Fund Fund Fund
----- ------------ ---------- --------
DECEMBER 31, 1994
<S> <C> <C> <C> <C>
Assets:
Investments at fair value $8,332,093 $13,941,836 $9,632,962 $5,439,402
Contributions receivable from employer
company 28,730 67,819 45,012 19,135
Contributions receivable from participants 48,065 161,823 119,945 49,067
Loans receivable from participants 81,974 98,024 120,401 106,466
Accrued investment income 9,696 - - -
----------- ---------- --------- ---------
Total assets 8,500,558 14,269,502 9,918,320 5,614,070
Liabilities - - - -
------------ ---------- --------- ---------
Net assets available for benefits $8,500,558 $14,269,502 $9,918,320 $5,614,070
------------ ----------- ---------- ----------
------------ ----------- ---------- -----------
<CAPTION>
Fidelity Fidelity Fidelity
Asset Managed Intermediate
Manager Income Bond
Fund Fund Fund Total
----------- --------- -------- -----
DECEMBER 31, 1994
<S> <C> <C> <C> <C>
Assets:
Investments at fair value $2,103,614 $656,019 $678,519 $40,784,445
Contributions receivable from employer
company 18,617 4,195 6,262 189,770
Contributions receivable from participants 53,408 13,554 20,399 466,261
Loans receivable from participants 113,211 19,386 15,806 555,268
Accrued investment income - - - 9,696
---------- ------- -------- ------------
Total assets 2,288,850 693,154 720,986 42,005,440
Liabilities - - - -
---------- -------- --------- -----------
Net assets available for benefits $2,288,850 $693,154 $720,986 $42,005,440
----------- -------- -------- -----------
----------- -------- -------- -----------
</TABLE>
Page 10 of 19 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Changes in Net Assets Available for Benefits by Investment Program
For the Year Ended December 31, 1995
<TABLE>
<CAPTION>
HBO & Fidelity Fidelity Fidelity
Company Fidelity Growth & Retirement Asset
Common Magellan Income Money Mkt Manager
Stock Fund Fund Fund Fund
----- ------------ ----------- --------- -----------
<S> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income $48,718 $1,289,951 $750,858 $327,789 $84,052
Unrealized appreciation
(depreciation) in fair
value of investments 8,252,485 3,471,673 2,786,815 - 335,567
Realized gain (loss) on
sale of investments 1,869,470 490,953 279,537 - 13,244
----------- ------------ ----------- ---------- ---------
Net increase from investment
activities 10,170,673 5,252,577 3,817,210 327,789 432,863
Contributions:
Employer 563,223 1,023,591 739,073 119,640 277,152
Participants 2,112,637 4,681,095 3,593,794 2,220,439 1,213,113
Interest income on loans
to participants 8,892 11,681 7,151 5,750 2,131
Total additions 12,855,425 10,968,944 8,157,228 2,673,618 1,925,259
Deductions from net assets
attributed to:
Benefits expense (1,027,905) (2,233,610) (1,229,326) (986,211) (232,528)
Interfund transfers 375,150 (87,884) (422,997) (451,871) (602,392)
---------- ---------- ---------- --------- ---------
Net increase 12,202,670 8,647,450 6,504,905 1,235,536 1,090,339
Net assets available for benefits:
Beginning of year 8,500,558 14,269,502 9,918,320 5,614,070 2,288,850
---------- ---------- ---------- --------- ---------
End of year $20,703,228 $22,916,952 $16,423,225 $6,849,606 $3,379,189
---------- ---------- ---------- --------- ---------
---------- ---------- ---------- --------- ---------
<CAPTION>
Fidelity
Fidelity Fidelity Int'l Fidelity
Managed Intermediate Growth Blue Chip
Income Bond & Income Growth
Fund Fund Fund Fund
--------- -------- -------- ---------
<S> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income $58,599 $60,657 $14,316 $136,842
Unrealized appreciation
(depreciation) in fair
value of investments - 56,102 (371) (98,529)
Realized gain (loss) on
sale of investments - (2,603) 73 (244)
--------- --------- --------- ---------
Net increase from investment
activities 58,599 114,156 14,018 38,069
Contributions:
Employer 96,667 118,702 15,767 87,302
Participants 705,686 714,269 368,893 1,504,035
Interest income on loans
to participants 1,108 648 64 555
--------- --------- --------- ---------
Total additions 862,060 947,775 398,742 1,629,961
Deductions from net assets
attributed to:
Benefits expense (35,865) (59,185) (6,922) (24,590)
Interfund transfers (66,622) (171,340) 119,206 1,047,804
---------- ---------- --------- --------
Net increase 759,573 717,250 511,026 2,653,175
Net assets available for benefits:
Beginning of year 693,154 720,986 - -
---------- ----------- --------- ----------
End of year $1,452,727 $ 1,438,236 $511,026 $2,653,175
--------- ---------- ------- ---------
---------- ---------- ------- ---------
<CAPTION>
Fidelity
Equity
Income II
Fund Total
--------- -----------
<S> <C> <C>
Additions to net assets
attributed to:
Investment income $37,055 $2,808,837
Unrealized appreciation
(depreciation) in fair
value of investments 34,255 14,837,997
Realized gain (loss) on
sale of investments 1,172 2,651,602
-------- ----------
Net increase from investment
activities 72,482 20,298,436
Contributions:
Employer 44,816 3,085,933
Participants 961,868 18,075,829
Interest income on loans
to participants 71 38,051
--------- ----------
Total additions 1,079,237 41,498,249
Deductions from net assets
attributed to:
Benefits expense (2,970) (5,839,112)
Interfund transfers 260,946 -
--------- ----------
Net increase 1,337,213 35,659,137
Net assets available for benefits:
Beginning of year - 42,005,440
---------- -----------
End of year $1,337,213 $77,664,577
---------- ----------
---------- ----------
</TABLE>
Pages 11 of 19 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Changes in Net Assets Available for Benefits by Investment Program
For the Year Ended December 31, 1994
<TABLE>
<CAPTION>
HBO & Fidelity Fidelity Fidelity
Company Fidelity Growth & Retirement Asset
Common Magellan Income Money Mkt Manager
Stock Fund Fund Fund Fund
-------- ------------ ----------- --------- ---------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income $33,559 $518,519 $680,070 $221,185 $78,386
Unrealized appreciation
(depreciation) in fair value
of investments 1,685,329 (750,568) (523,979) - (232,835)
Realized gain (loss) on sale
of investments 1,046,875 (8,635) 46,594 - 3,729
---------- ---------- ---------- --------- ---------
Net increase (decrease) from
investment activities 2,765,763 (240,684) 202,685 221,185 (150,720)
Contributions:
Employer 317,479 892,316 594,766 151,163 205,307
Participants 527,935 2,125,978 1,625,354 744,298 580,439
Interest income on loans to
participants 8,863 8,551 5,887 6,432 1,568
------------ ------------- ---------- ---------- ----------
Total additions 3,620,040 2,786,161 2,428,692 1,123,078 636,594
Deductions from net assets attributed to:
Benefits expense (255,608) (1,103,577) (773,038) (1,203,097) (192,259)
Interfund transfers (300,279) (173,667) 178,305 271,227 53,693
------------ ------------- ---------- ------- ---------
Net increase 3,064,153 1,508,917 1,833,959 191,208 498,028
Net assets available for benefits:
Beginning of year 5,436,405 12,760,584 8,084,361 5,422,862 1,790,822
------------ ------------ ----------- ---------- ----------
End of year $8,500,558 $14,269,501 $9,918,320 $5,614,070 $2,288,850
----------- ------------ ----------- ---------- ----------
----------- ------------ ----------- ---------- ----------
<CAPTION>
Fidelity Fidelity
Managed Intermediate
Income Bond
Fund Fund Total
----------- ---------- --------
<S> <C> <C> <C>
Additions to net assets attributed to:
Investment income $31,526 $40,905 $1,604,150
Unrealized appreciation
(depreciation) in fair value
of investments - (43,201) 134,746
Realized gain (loss) on sale
of investments - (9,367) 1,079,196
----------- ----------- ---------
Net increase (decrease) from
investment activities 31,526 (11,663) 2,818,092
Contributions:
Employer 44,215 65,122 2,270,368
Participants 140,957 213,262 5,958,223
Interest income on loans to
participants 1,191 557 33,049
------- ---------- -----------
Total additions 217,889 267,278 11,079,732
Deductions from net assets attributed to:
Benefits expense (33,946) (49,790) (3,611,315)
Interfund transfers 52,544 (81,823) -
-------- ---------- ---------
Net increase 236,487 135,665 7,468,417
Net assets available for benefits:
Beginning of year 456,668 585,321 34,537,023
------- --------- ----------
End of year $693,155 $720,986 $42,005,440
-------- -------- -----------
-------- -------- -----------
</TABLE>
Page 12 of 19 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Notes to Financial Statements, Continued
December 31, 1995 and 1994
(8) INVESTMENTS
During 1995 and 1994 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
-------------- ------------
Year ended December 31, 1995:
<S> <C> <C>
Fair value as determined by quoted market price:
HBO & Company Common Stock Fund $ 10,121,955 $ 20,386,601
Fidelity Magellan Fund 3,962,625 22,325,414
Fidelity Growth and Income Fund 3,066,353 15,955,736
Fidelity Retirement Money Market Fund - 6,044,568
Fidelity Asset Manager Fund 348,811 3,173,483
Fidelity Managed Income Fund - 1,400,057
Fidelity Intermediate Bond Fund 53,499 1,346,381
Fidelity International Growth and Income Fund (298) 461,479
Fidelity Blue Chip Growth Fund (98,773) 2,563,562
Fidelity Equity Income II Fund 35,427 1,255,847
------------ ------------
$ 17,489,599 $ 74,913,128
------------ ------------
------------ ------------
</TABLE>
The current value of the HBO & Company Common Stock Fund, Fidelity Magellan
Fund, Fidelity Growth and Income Fund, and Fidelity Retirement Money Market
Fund held for investment at December 31, 1995 was $20,386,601, $22,325,414,
$15,955,736 and $6,044,568, respectively, each of which represents an
investment greater than 5% of the Plan's net assets.
<TABLE>
<CAPTION>
Year ended December 31, 1994:
<S> <C> <C>
Fair value as determined by quoted market price:
HBO & Company Common Stock Fund $ 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
-------------- ------------
-------------- ------------
</TABLE>
(Continued)
Page 13 of 19 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Notes to Financial Statements, Continued
December 31, 1995 and 1994
(8) INVESTMENTS, CONTINUED
The current value of the HBO & Company Common Stock Fund, Fidelity
Magellan Fund, Fidelity Growth and Income Fund, Fidelity Asset Manager
Fund and Fidelity Retirement Money Market Fund held for investment at
December 31, 1994 was $8,332,093, $13,941,836, $9,632,962, $2,103,614
and $5,439,402, respectively, each of which represents an investment
greater than 5% of the Plan's net assets.
The realized gain on the sale of investments during the years ended
December 31, 1995 and 1994 was determined as follows:
<TABLE>
<CAPTION>
1995 1994
----- ----
<S> <C> <C>
Aggregate proceeds $ 13,766,954 $ 8,984,898
Aggregate cost (11,115,352) (7,905,702)
------------ ----------
Realized gain $ 2,651,602 $ 1,079,196
------------ ----------
------------ ----------
</TABLE>
During 1995 and 1994, the balance of unrealized appreciation (depreciation)
in the fair value of investments changed as follows:
<TABLE>
<CAPTION>
<S> <C>
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
Current unrealized appreciation of
investments, net of realized gains (losses) 14,837,997
----------
Balance, December 31, 1995 $ 20,530,805
-----------
-----------
</TABLE>
Page 14 of 19 Pages
<PAGE>
Supplementary Information
Page 15 of 19 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
DECEMBER 31, 1995
<TABLE>
<CAPTION>
(a) Identity of (e) Current
Party Involved (b) Identity of Issue (c) Description (d) Cost Value
-------------- ---------------- ---------- ----- -----
Fidelity Investments Shares
- -------------------- ------
<S> <C> <C> <C> <C>
Fidelity Magellan Fund 259,658 $ 18,248,395 $ 22,325,414
Fidelity Growth & Income Fund 589,861 13,245,517 15,955,736
Fidelity Retirement Money Market
Fund 6,044,568 6,044,568 6,044,568
Fidelity Asset Manager Fund 200,220 2,970,797 3,173,483
Fidelity Managed Income Fund 1,400,057 1,400,057 1,400,057
Fidelity Intermediate Bond Fund 129,335 1,327,528 1,346,381
Fidelity International Growth & Income
Fund 25,709 461,850 461,479
Fidelity Blue Chip Growth Fund 83,314 2,662,092 2,563,562
Fidelity Equity Income II Fund 58,602 1,221,592 1,255,847
----------- -----------
47,582,396 54,526,527
Company Stock Fund Shares
- ------------------- ------
* HBO & Company Common Stock 266,057 6,799,927 20,386,601
Interest
-------
Participant Loans Participant Loans 9-10% - 1,302,830
- ----------------- ------------ ------------
Total investments held $ 54,382,323 $ 76,215,958
----------- -----------
----------- -----------
<CAPTION>
DECEMBER 31, 1994
(a) Identity of (e) Current
Party Involved (b) Identity of Issue (c) Description (d) Cost Value
-------------- ---------------- ----------- ---- ------
Fidelity Investments Shares
- -------------------- ------
<S> <C> <C> <C> <C>
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
<CAPTION>
Company Stock Fund Shares
- -------------------- -------
* HBO & Company Common Stock 242,388 2,997,904 8,332,093
Interest
--------
Participant Loans Participant Loans 5-8% - 555,268
- ----------------- ----------- -----------
Total investments held $ 35,091,637 $ 41,339,713
----------- -----------
----------- -----------
</TABLE>
* Party in interest.
Page 16 of 19 Pages
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Item 27d - Schedule of Reportable Transactions
Transactions or Series of Transactions in Excess of Five Percent
of the Current Value of Plan Assets
<TABLE>
<CAPTION>
Number of
(a) Identity of (b) Description Number of Shares or (c) Purchase (d) Selling
Party Involved of Assets Transactions Units Price Price
-------------- ------------ ------------ ----------- --------- -------
CATEGORY (III) - A SERIES OF TRANSACTIONS IN EXCESS OF 5% OF PLAN ASSETS:
DECEMBER 31, 1995
<S> <C> <C> <C> <C> <C>
HBO & Company Common Stock
Purchases 116 87,631 $4,802,545
Sales 86 63,962 $2,869,992
Fidelity Magellan
Purchases 175 101,707 8,480,096
Sales 121 50,759 4,059,143
Fidelity Growth & Income Fund
Purchases 185 249,072 6,048,742
Sales 127 115,966 2,792,320
Fidelity Retirement Money Mkt Fund
Purchases 161 2,681,481 2,681,481
Sales 140 2,076,315 2,076,315
Fidelity Asset Manager Fund
Purchases 152 115,677 1,717,364
Sales 119 67,563 996,306
Fidelity Blue Chip Growth Fund
Purchases 102 86,627 2,767,888
Sales 27 3,313 105,553
DECEMBER 31, 1994
HBO & Company Common Stock
Purchases 81 174,215 $1,918,526
Sales 54 48,122 $1,668,234
Fidelity Magellan
Purchases 157 63,924 4,369,898
Sales 99 31,797 2,179,784
Fidelity Growth & Income Fund
Purchases 151 169,114 3,702,828
Sales 92 66,980 1,472,160
Fidelity Retirement Money Mkt Fund
Purchases 135 2,521,516 2,521,516
Sales 118 2,347,500 2,347,500
Fidelity Asset Manager Fund
Purchases 113 96,224 1,433,535
Sales 59 51,886 760,430
<CAPTION>
(h) Current Value
(g) Cost of Assets on (i) Net
of Transaction Gain
Assets Date (Loss)
--------- ------------- -----
December 31, 1995
<S> <C> <C> <C> <C>
HBO & Company Common Stock
Purchases $4,802,545 $4,802,545
Sales 1,000,522 2,869,992 $1,869,470
Fidelity Magellan
Purchases 8,480,096 8,480,096
Sales 3,568,190 4,059,143 490,953
Fidelity Growth & Income Fund
Purchases 6,048,742 6,048,742
Sales 2,512,783 2,792,320 279,537
Fidelity Retirement Money Mkt Fund
Purchases 2,681,481 2,681,481
Sales 2,076,315 2,076,315 -
Fidelity Asset Manager Fund
Purchases 1,717,364 1,717,364
Sales 983,062 996,306 13,244
Fidelity Blue Chip Growth Fund
Purchases 2,767,888 2,767,888
Sales 105,797 105,553 (244)
DECEMBER 31, 1994
HBO & Company Common Stock
Purchases $1,918,526 $1,918,526
Sales 621,359 1,668,234 $1,046,875
Fidelity Magellan
Purchases 4,369,898 4,369,898
Sales 2,188,419 2,179,784 (8,635)
Fidelity Growth & Income Fund
Purchases 3,702,828 3,702,828
Sales 1,425,566 1,472,160 46,594
Fidelity Retirement Money Mkt Fund
Purchases 2,521,516 2,521,516
Sales 2,347,500 2,347,500 -
Fidelity Asset Manager Fund
Purchases 1,433,535 1,433,535
Sales 756,702 760,430 3,728
</TABLE>
Page 17 of 19 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/ E. Christine Rumsey
-----------------------
E. Christine Rumsey
DATE: June 27, 1996 (A Member of the Committee
appointed under and pursuant to
the HBO & Company Profit Sharing
and Savings Plan)
Page 18 of 19 Pages
<PAGE>
EXHIBIT 24(a)
[LETTERHEAD]
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 5, 1996, 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, 1995.
Atlanta, Georgia
June 27, 1996
Page 19 of 19 Pages
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