<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
For the fiscal year ended December 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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>
SNYDER, CAMP, STEWART & CO., LLP
CERTIFIED PUBLIC ACCOUNTANTS
3850 HOLCOMB BRIDGE ROAD
SUITE 210
NORCROSS, GEORGIA 30092
(770) 263-9666
TELECOPIER (770) 441-1880
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,
1996 and 1995, 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, 1996 and 1995, 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.
/s/SNYDER CAMP STEWART & CO LLP
SNYDER, CAMP, STEWART & CO., LLP
Atlanta, Georgia
May 23, 1997
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Statements of Net Assets Available for Benefits
December 31, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
-------------- -------------
<S> <C> <C>
Assets:
Investments, at fair value:
HBO & Company Common Stock Fund............................. $ 37,178,326 $ 20,386,601
Fidelity Magellan Fund...................................... 23,326,930 22,325,414
Fidelity Growth and Income Fund............................. 22,435,878 15,955,736
Fidelity Retirement Money Market Fund....................... 6,630,055 6,044,568
Fidelity Asset Manager...................................... 4,065,764 3,173,483
Fidelity Managed Income Fund................................ 1,714,963 1,400,057
Fidelity Intermediate Bond Fund............................. 1,744,475 1,346,381
Fidelity International Growth and Income Fund............... 1,545,592 461,479
Fidelity Blue Chip Growth Fund.............................. 5,440,319 2,563,562
Fidelity Equity Income II Fund.............................. 3,723,426 1,255,847
-------------- -------------
Total investments......................................... 107,805,728 74,913,128
Contributions receivable from employer....................... 331,097 278,575
Contributions receivable from participants................... 802,439 1,159,402
Loans receivable from participants........................... 1,937,362 1,302,830
Accrued investment income.................................... 12,523 10,642
-------------- -------------
Total assets.............................................. 110,889,149 77,664,577
Liabilities................................................... -- --
-------------- -------------
Net assets available for benefits............................. $ 110,889,149 $ 77,664,577
-------------- -------------
-------------- -------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Statements of Changes in Net Assets Available for Benefits
For the Years Ended December 31, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
-------------- -------------
<S> <C> <C>
Additions to net assets attributed to:
Investment income............................................ $ 6,348,812 $ 2,808,837
Unrealized appreciation in fair value of investments......... 9,395,315 14,837,997
Realized gain on sale of investments......................... 4,043,165 2,651,602
-------------- -------------
Net increase from investment activities................... 19,787,292 20,298,436
Contributions:
Employer.................................................... 4,009,263 3,085,933
Participants................................................ 16,639,795 18,075,829
Interest income on loans to participants..................... 70,910 38,051
-------------- -------------
Total additions........................................... 40,507,260 41,498,249
Deductions from net assets attributed to:
Benefits paid directly to participants...................... (7,282,613) (5,839,112)
Administrative fees......................................... (75) --
-------------- -------------
Net increase.............................................. 33,224,572 35,659,137
Net assets available for benefits:
Beginning of year............................................ 77,664,577 42,005,440
-------------- -------------
End of year.................................................. $ 110,889,149 $ 77,664,577
-------------- -------------
-------------- -------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Notes to Financial Statements
December 31, 1996 and 1995
(1) DESCRIPTION OF PLAN
The following description of HBO & Company Profit Sharing and Savings Plan
(the "Plan") provides only general information. The Plan document 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-1995 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 1996 and 1995, 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,
1996 and 1995.
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>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Notes to Financial Statements, Continued
December 31, 1996 and 1995
(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, 1996, forfeited nonvested accounts
amounted to $215,309. 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 is
paid ratably through monthly payroll deductions.
Upon termination, participants under age 65 with account balances totaling
more than $3,500 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 (regardless of amount) are payable upon normal or
postponed retirement or to beneficiaries upon death of the participant.
Participants with balances totaling less than $3,500 or on total or permanent
disability receive a lump sum distribution of his/her vested benefits.
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>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Notes to Financial Statements, Continued
December 31, 1996 and 1995
(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, 1996 was $37,143.
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.
(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 1996 and 1995
were paid by the Company.
(4) 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.
(5) TRANSACTIONS WITH PARTIES-IN-INTEREST
During the year ended December 31, 1996, the Plan purchased 433,718 shares
of the Common Stock of HBO & Company, the Plan sponsor, for $10,216,175, and
sold 73,613 shares of the Common Stock of HBO & Company for $5,067,732 in
accordance with the terms of the Plan.
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.
(Continued)
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Notes to Financial Statements, Continued
December 31, 1996 and 1995
(6) RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for benefits per
the financial statements at December 31, 1996 and 1995 to Form 5500:
<TABLE>
<CAPTION>
1996 1995
-------------- -------------
<S> <C> <C>
Net assets available for benefits per the financial
statements.................................................. $ 110,889,149 $ 77,664,577
Amounts allocated to withdrawing participants................. (37,143) (2,325)
-------------- -------------
Net assets available for benefits per the Form 5500........... $ 110,852,006 $ 77,662,252
-------------- -------------
-------------- -------------
</TABLE>
The following is a reconciliation of benefits paid to participants per the
financial statements for the year ended December 31, 1996 to Form 5500:
<TABLE>
<S> <C>
Benefits paid to participants per the financial statements.................... $ 7,282,613
Add: Amounts allocated to withdrawing participants at December
31, 1996.................................................................... 37,143
Less: Amounts allocated to withdrawing participants at December
31, 1995.................................................................... $ (2,325)
-------------
Benefits paid to participants per Form 5500................................... $ 7,317,431
-------------
-------------
</TABLE>
Amounts allocated to withdrawing participants are recorded on the Form 5500
for benefit claims that have been processed and approved for payment prior to
December 31, but not yet paid as of that date.
(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, 1996 and 1995.
(Continued)
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Net Assets Available for Benefits by Investment Program
<TABLE>
<CAPTION>
Fidelity
HBO & Fidelity Fidelity Fidelity Fidelity Fidelity Int'l
Company Fidelity Growth & Retirement Asset Managed Intermediate Growth
Common Magellan Income Money Mkt Manager Income Bond & Income
Stock Fund Fund Fund Fund Fund Fund Fund
----------- ----------- ----------- ---------- ---------- ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
December 31, 1996
- -----------------
Assets:
Investments at fair value... $37,178,326 $23,326,930 $22,435,878 $6,630,055 $4,065,764 $1,714,963 $1,744,475 $1,545,592
Contributions receivable
from employer company..... 78,415 68,507 70,083 20,020 16,249 7,510 7,502 9,718
Contributions receivable
from participants......... 163,155 158,589 185,218 47,354 46,348 17,037 23,686 23,146
Loans receivable from
participants.............. 252,247 407,180 375,431 550,217 190,808 84,842 83,991 (848)
Accrued investment income... 12,523 -- -- -- -- -- -- --
----------- ----------- ----------- ---------- ---------- ---------- ------------ ----------
Total assets............ 37,684,666 23,961,206 23,066,610 7,247,646 4,319,169 1,824,352 1,859,654 1,577,608
----------- ----------- ----------- ---------- ---------- ---------- ------------ ----------
Liabilities................... -- -- -- -- -- -- -- --
----------- ----------- ----------- ---------- ---------- ---------- ------------ ----------
Net assets available for
benefits.................... $37,684,666 $23,961,206 $23,066,610 $7,247,646 $4,319,169 $1,824,352 $1,859,654 $1,577,608
----------- ----------- ----------- ---------- ---------- ---------- ------------ ----------
----------- ----------- ----------- ---------- ---------- ---------- ------------ ----------
<CAPTION>
Fidelity Fidelity
Blue Chip Equity
Growth Income II
Fund Fund Total
---------- ---------- ------------
<S> <C> <C> <C>
December 31, 1996
- -----------------
Assets:
Investments at fair value... $5,440,319 $3,723,426 $107,805,728
Contributions receivable
from employer company..... 30,963 22,130 331,097
Contributions receivable
from participants......... 75,695 62,211 802,439
Loans receivable from
participants.............. (9,528 ) 3,022 1,937,362
Accrued investment income... -- -- 12,523
---------- ---------- ------------
Total assets............ 5,537,449 3,810,789 110,889,149
---------- ---------- ------------
Liabilities................... -- -- --
---------- ---------- ------------
Net assets available for
benefits.................... $5,537,449 $3,810,789 $110,889,149
---------- ---------- ------------
---------- ---------- ------------
</TABLE>
<TABLE>
<CAPTION>
Fidelity
HBO & Fidelity Fidelity Fidelity Fidelity Fidelity Int'L
Company Fidelity Growth & Retirement Asset Managed Intermediate Growth
Common Magellan Income Money Mkt Manager Income Bond & Income
Stock Fund Fund Fund Fund Fund Fund Fund
----------- ----------- ----------- ---------- ---------- ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
December 31, 1995
- -----------------
Assets:
Investments at fair value... $20,386,601 $22,325,414 $15,955,736 $6,044,568 $3,173,483 $1,400,057 $1,346,381 $ 461,479
Contributions receivable
from employer company..... 53,075 80,928 54,530 21,582 19,536 8,455 10,168 3,676
Contributions receivable
from participants......... 129,305 298,919 210,688 162,396 83,503 21,111 52,055 45,015
Loans receivable from
participants.............. 123,605 211,690 202,271 621,060 102,667 23,105 29,632 856
Accrued investment income... 10,642 -- -- -- -- -- -- --
----------- ----------- ----------- ---------- ---------- ---------- ------------ ----------
Total assets............ 20,703,228 22,916,951 16,423,225 6,849,606 3,379,189 1,452,728 1,438,236 511,026
Liabilities................... -- -- -- -- -- -- -- --
----------- ----------- ----------- ---------- ---------- ---------- ------------ ----------
Net assets available for
benefits.................... $20,703,228 $22,916,951 $16,423,225 $6,849,606 $3,379,189 $1,452,728 $1,438,236 $ 511,026
----------- ----------- ----------- ---------- ---------- ---------- ------------ ----------
----------- ----------- ----------- ---------- ---------- ---------- ------------ ----------
<CAPTION>
Fidelity Fidelity
Blue Chip Equity
Growth Income II
Fund Fund Total
---------- ---------- ------------
<S> <C> <C> <C>
December 31, 1995
- -----------------
Assets:
Investments at fair value... $2,563,562 $1,255,847 $ 74,913,128
Contributions receivable
from employer company..... 18,434 8,191 278,575
Contributions receivable
from participants......... 81,035 75,375 1,159,402
Loans receivable from
participants.............. (9,856 ) (2,200 ) 1,302,830
Accrued investment income... -- -- 10,642
---------- ---------- ------------
Total assets............ 2,653,175 1,337,213 77,664,577
Liabilities................... -- -- --
---------- ---------- ------------
Net assets available for
benefits.................... $2,653,175 $1,337,213 77,664,577
---------- ---------- ------------
---------- ---------- ------------
</TABLE>
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Changes in Net Assets Available for Benefits by Investment Program
For the Year Ended December 31, 1996
<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
------------ ----------- ----------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed
to:
Investment income................ $ 66,609 $ 3,771,860 $ 1,059,501 $ 335,819 $ 309,190 $ 88,638 $ 109,760
Unrealized appreciation
(depreciation) in fair value of
investments.................... 8,607,960 (1,562,119) 1,835,419 -- 34,814 -- (41,248)
Realized gain (loss) on sale of
investments.................... 3,035,321 281,560 606,782 -- 84,485 -- (6,275)
------------ ----------- ----------- ---------- ---------- ---------- ------------
Net increase from investment
activities..................... 11,709,890 2,491,301 3,501,702 335,819 428,489 88,638 62,237
Contributions:
Employer....................... 927,855 1,075,583 857,839 92,490 240,557 104,062 126,431
Participants................... 3,142,699 3,997,950 3,334,740 1,077,317 1,000,904 482,826 550,702
Interest income on loans to
participants................... 11,497 13,422 15,267 13,135 3,719 2,192 1,925
------------ ----------- ----------- ---------- ---------- ---------- ------------
Total additions.............. 15,791,941 7,578,256 7,709,548 1,518,761 1,673,669 677,718 741,295
Deductions from net assets
attributed to:
Benefits expense................. (2,243,845) (1,687,036) (1,528,871) (626,512 ) (334,009) (177,363) (142,124)
Administrative expense........... -- (75) -- -- -- -- --
Interfund transfers.............. 3,433,342 (4,846,890) 462,708 (494,209 ) (399,680) (128,731) (177,753)
------------ ----------- ----------- ---------- ---------- ---------- ------------
Net increase................. 16,981,438 1,044,255 6,643,385 398,040 939,980 371,624 421,418
Net assets available for benefits:
Beginning of year................ 20,703,228 22,916,951 16,423,225 6,849,606 3,379,189 1,452,728 1,438,236
------------ ----------- ----------- ---------- ---------- ---------- ------------
End of year...................... $37,684,666 $23,961,206 $23,066,610 $7,247,646 $4,319,169 $1,824,352 $1,859,654
------------ ----------- ----------- ---------- ---------- ---------- ------------
------------ ----------- ----------- ---------- ---------- ---------- ------------
<CAPTION>
Fidelity
Int'l Fidelity Fidelity
Growth Blue Chip Equity
& Income Growth Income II
Fund Fund Fund Total
---------- ---------- ---------- ------------
<S> <C> <C> <C> <C>
Additions to net assets attributed
to:
Investment income................ $ 51,435 $ 335,802 $ 220,198 $ 6,348,812
Unrealized appreciation
(depreciation) in fair value of
investments.................... 81,145 278,578 160,766 9,395,315
Realized gain (loss) on sale of
investments.................... 2,911 (818) 39,199 4,043,165
---------- ---------- ---------- ------------
Net increase from investment
activities..................... 135,491 613,562 420,163 19,787,292
Contributions:
Employer....................... 80,249 308,749 195,448 4,009,263
Participants................... 410,458 1,627,283 1,014,916 16,639,795
Interest income on loans to
participants................... 1,533 5,689 2,531 70,910
---------- ---------- ---------- ------------
Total additions.............. 627,731 2,555,283 1,633,058 40,507,260
Deductions from net assets
attributed to:
Benefits expense................. (54,485) (253,820) (234,548) (7,282,613)
Administrative expense........... -- -- -- (75)
Interfund transfers.............. 493,336 582,811 1,075,066 --
---------- ---------- ---------- ------------
Net increase................. 1,066,582 2,884,274 2,473,576 33,224,572
Net assets available for benefits:
Beginning of year................ 511,026 2,653,175 1,337,213 77,664,577
---------- ---------- ---------- ------------
End of year...................... $1,577,608 $5,537,449 $3,810,789 $110,889,149
---------- ---------- ---------- ------------
---------- ---------- ---------- ------------
</TABLE>
<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 Fidelity Fidelity
Company Fidelity Growth & Retirement Asset Managed Intermediate
Common Magellan Income Money Mkt Manager Income Bond
Stock Fund Fund Fund Fund Fund Fund
------------ ----------- ----------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed
to:
Investment
income........................... $ 48,718 $ 1,289,951 $ 750,858 $ 327,789 $ 84,052 $ 58,599 $ 60,657
Unrealized appreciation
(depreciation) in fair value of
investments.................... 8,252,485 3,471,673 2,786,815 -- 335,567 -- 56,102
Realized gain (loss) on sale of
investments.................... 1,869,470 490,953 279,537 -- 13,244 -- (2,603)
------------ ----------- ----------- ---------- ---------- ---------- ------------
Net increase from investment
activities..................... 10,170,673 5,252,577 3,817,210 327,789 432,863 58,599 114,156
Contributions:
Employer....................... 563,223 1,023,591 739,073 119,640 277,152 96,667 118,702
Participants................... 2,112,637 4,681,095 3,593,794 2,220,439 1,213,113 705,686 714,269
Interest income on loans to
participants................... 8,892 11,681 7,151 5,750 2,131 1,108 648
------------ ----------- ----------- ---------- ---------- ---------- ------------
Total additions............... 12,855,425 10,968,944 8,157,228 2,673,618 1,925,259 862,060 947,775
Deductions from net assets
attributed to:
Benefits expense................. (1,027,905) (2,233,610) (1,229,326) (986,211) (232,528) (35,865) (59,185)
Interfund transfers.............. 375,150 (87,884) (422,997) (451,871) (602,392) (66,622) (171,340)
------------ ----------- ----------- ---------- ---------- ---------- ------------
Net increase................. 12,202,670 8,647,450 6,504,905 1,235,536 1,090,339 759,573 717,250
Net assets available for benefits:
Beginning of year................. 8,500,558 14,269,502 9,918,320 5,614,070 2,288,850 693,154 720,986
------------ ----------- ----------- ---------- ---------- ---------- ------------
End of year...................... $20,703,228 $22,916,952 $16,423,225 $6,849,606 $3,379,189 $1,452,727 $1,438,236
------------ ----------- ----------- ---------- ---------- ---------- ------------
------------ ----------- ----------- ---------- ---------- ---------- ------------
<CAPTION>
Fidelity
Int'l Fidelity Fidelity
Growth Blue Chip Equity
& Income Growth Income II
Fund Fund Fund Total
---------- ---------- ---------- ------------
<S> <C> <C> <C> <C>
Additions to net assets attributed
to:
Investment income................ $ 14,316 $ 136,842 $ 37,055 $ 2,808,837
Unrealized appreciation
(depreciation) in fair value of
investments.................... (371) (98,529) 34,255 14,837,997
Realized gain (loss) on sale of
investments.................... 73 (244) 1,172 2,651,602
---------- ---------- ---------- ------------
Net increase from investment
activities..................... 14,018 38,069 72,482 20,298,436
Contributions:
Employer....................... 15,767 87,302 44,816 3,085,933
Participants................... 368,893 1,504,035 961,868 18,075,829
Interest income on loans to
participants................... 64 555 71 38,051
---------- ---------- ---------- ------------
Total additions.............. 398,742 1,629,961 1,079,237 41,498,249
Deductions from net assets
attributed to:
Benefits expense............... (6,922) (24,590) (2,970) (5,839,112)
Interfund transfers............ 119,206 1,047,804 260,946 --
---------- ---------- ---------- ------------
Net increase............... 511,026 2,653,175 1,337,213 35,659,137
Net assets available for benefits:
Beginning of year.............. -- -- -- 42,005,440
---------- ---------- ---------- ------------
End of year.................... $ 511,026 $2,653,175 $ 1,337,213 $77,664,577
---------- ---------- ---------- ------------
---------- ---------- ---------- ------------
</TABLE>
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Notes to Financial Statements, Continued
December 31, 1996 and 1995
(8) INVESTMENTS
During 1996 and 1995 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, 1996:
Fair value as determined by quoted market price:
HBO & Company Common Stock Fund............................... $11,643,281 $ 37,178,326
Fidelity Magellan Fund........................................ (1,280,559) 23,326,930
Fidelity Growth and Income Fund............................... 2,442,201 22,435,878
Fidelity Retirement Money Market Fund......................... -- 6,630,055
Fidelity Asset Manager Fund................................... 119,299 4,065,764
Fidelity Managed Income Fund.................................. -- 1,714,963
Fidelity Intermediate Bond Fund............................... (47,523) 1,744,475
Fidelity International Growth and Income Fund................. 84,056 1,545,592
Fidelity Blue Chip Growth Fund................................ 277,760 5,440,319
Fidelity Equity Income II Fund................................ 199,965 3,723,426
------------- --------------
$13,438,480 $ 107,805,728
------------- --------------
------------- --------------
</TABLE>
The current value of the HBO & Company Common Stock Fund, Fidelity Magellan
Fund, Fidelity Growth and Income Fund, Fidelity Retirement Money Market Fund
and Fidelity Blue Chip Growth Fund held for investment at December 31, 1996
was $37,178,326, $23,326,930, $22,435,878, $6,630,055 and $5,440,319,
respectively, each of which represents an investment greater than 5% of the
Plan's net assets.
Year ended December 31, 1995:
<TABLE>
<CAPTION>
<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>
(Continued)
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
Notes to Financial Statements, Continued
December 31, 1996 and 1995
(8) INVESTMENTS, CONTINUED
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.
The realized gain on the sale of investments during the years ended
December 31, 1996 and 1995 was determined as follows:
<TABLE>
<CAPTION>
1996 1995
------------- -------------
<S> <C> <C>
Aggregate proceeds............................................. $ 23,607,827 $ 13,766,954
Aggregate cost................................................. (19,564,662) (11,115,352)
------------- -------------
Realized gain............................................... $ 4,043,165 $ 2,651,602
------------- -------------
------------- -------------
During 1996 and 1995, the balance of unrealized appreciation (depreciation)
in the fair value of investments changed as follows:
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
Current unrealized appreciation of investments, net of realized
gains (losses).............................................. 9,395,315
-------------
Balance, December 31, 1996..................................... $ 29,926,120
--------------
--------------
</TABLE>
<PAGE>
SUPPLEMENTARY INFORMATION
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
FEI # 37-0986839--Plan #001
Item 27a--Schedule of Assets Held for Investment Purposes
<TABLE>
<CAPTION>
December 31, 1996
-----------------
<S> <C> <C> <C> <C>
(a) Identity of (b) Identity of Issue (c) Description (d) Cost (e) Current Value
Party Involved
----------------- --------------------- --------------- -------------- -----------------
Fidelity Investments Shares
- -------------------- ------
Fidelity........................ Magellan Fund 289,237 $ 20,812,030 $ 23,326,930
Fidelity........................ Growth & Income Fund 730,097 17,890,239 22,435,878
Fidelity........................ Retirement Money Market Fund 6,630,055 6,630,055 6,630,055
Fidelity........................ Asset Manager Fund 246,859 3,828,264 4,065,764
Fidelity........................ Managed Income Fund 1,714,963 1,714,963 1,714,963
Fidelity........................ Intermediate Bond Fund 173,063 1,766,871 1,744,475
Fidelity........................ International Growth & Income Fund 79,058 1,464,818 1,545,592
Fidelity........................ Blue Chip Growth Fund 166,422 5,260,270 5,440,319
Fidelity........................ Equity Income II Fund 156,776 3,528,406 3,723,426
-------------- -------------
62,895,916 70,627,402
Company Stock Fund Shares
- ------------------- ------
* HBO & Company................ Common Stock 626,161 14,983,691 37,178,326
Interest
--------
Participant Loans............... Participant Loans 6-10% -- 1,937,362
- -----------------
--------------- -------------
Total investments held.......... $ 77,879,607 $ 109,743,090
---------------- -------------
---------------- -------------
</TABLE>
<TABLE>
<CAPTION>
December 31, 1995
-----------------
<S> <C> <C> <C> <C>
(a) Identity of (b) Identity of Issue (c) Description (d) Cost (e) Current Value
Party Involved
----------------- --------------------- --------------- -------- -----------------
Fidelity Investments Shares
- -------------------- ------
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 6-10% -- 1,302,830
- ----------------- --------------- ----------------
Total investments held $ 54,382,323 $ 76,215,958
-------------- ----------------
* Party in interest. -------------- ----------------
</TABLE>
<PAGE>
HBO & COMPANY PROFIT SHARING AND SAVINGS PLAN
FEI # 37-0986839--Plan #001
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 (g) Cost of
Party Involved of Assets Transactions Units Price Price Assets
-------------- ----------- ------------ ---------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Category (iii)--A series of transactions in excess of 5% of plan assets:
December 31, 1996
- -----------------
HBO & Company Common Stock
Purchases 117 433,718 $10,216,175 $10,216,175
Sales 84 73,613 $5,067,732 2,032,411
Fidelity Magellan
Purchases 217 126,174 9,873,435 9,873,435
Sales 179 96,596 7,591,360 7,309,800
Fidelity Growth & Income Fund
Purchases 216 270,435 7,790,872 7,790,872
Sales 157 130,199 3,752,932 3,146,151
Fidelity Retirement Money Mkt Fund
Purchases 183 2,866,332 2,866,332 2,866,332
Sales 147 2,280,845 2,280,845 2,280,845
Fidelity Blue Chip Growth Fund
Purchases 180 111,501 3,495,527 3,495,527
Sales 101 28,393 896,530 897,348
</TABLE>
<TABLE>
<CAPTION>
(h) Current Value
of Assets On
Transaction (i) Net
Date Gain (Loss)
------------- -----------
<S> <C> <C>
December 31, 1996
- -----------------
HBO & Company $10,216,175
5,067,732 $3,035,321
Fidelity 9,873,435
7,591,360 281,560
Fidelity 7,790,872
3,752,932 606,781
Fidelity 2,866,332
2,280,845 --
Fidelity 3,495,527
896,530 (818)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Number of
(a) Identity of (b) Description Number of Shares or (c) Purchase (d) Selling (g) Cost of
Party Involved of Assets Transactions Units Price Price Assets
-------------- ----------- ------------ ---------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Category (iii)--A series of transactions in excess of 5% of plan assets:
December 31, 1995
- -----------------
HBO & Company Common Stock
Purchases 116 87,631 $ 4,802,545 $ 4,802,545
Sales 86 63,962 $ 2,869,992 1,000,522
Fidelity Magellan
Purchases 175 101,707 8,480,096 8,480,096
Sales 121 50,759 4,059,143 3,568,190
Fidelity Growth & Income Fund
Purchases 185 249,072 6,048,742 6,048,742
Sales 127 115,966 2,792,320 2,512,783
Fidelity Retirement Money Mkt Fund
Purchases 161 2,681,481 2,681,481 2,681,481
Sales 140 2,076,315 2,076,315 2,076,315
Fidelity Asset Manager Fund
Purchases 152 115,677 1,717,364 1,717,364
Sales 119 67,563 996,306 983,062
Fidelity Blue Chip Growth Fund
Purchases 102 86,627 2,767,888 2,767,888
Sales 27 3,313 105,553 105,797
</TABLE>
<TABLE>
<CAPTION>
(h) Current Value
of Assets On
Transaction (i) Net
Date Gain (Loss)
------------- -----------
<S> <C> <C>
December 31, 1995
- -----------------
HBO & Company $ 4,802,545
2,869,992 $1,869,470
Fidelity 8,480,096
4,059,143 490,953
Fidelity 6,048,742
2,792,320 279,537
Fidelity 2,681,481
2,076,315 --
Fidelity 1,717,364
996,306 13,244
Fidelity 2,767,888
105,553 (244)
</TABLE>
<PAGE>
SIGNATURES
__________
THE PLAN. 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 30, 1997 (Each Member of the Committee
------------- appointed under and pursuant to the
HBO & Company Profit Sharing and
Savings Plan)
<PAGE>
EXHIBIT INDEX
EXHIBIT PAGE
NUMBER DESCRIPTION NUMBER
- ------- --------------------------------------------------- ------
23 Consent of independent public accountants
<PAGE>
SNYDER, CAMP, STEWART & CO., LLP
CERTIFIED PUBLIC ACCOUNTANTS
3850 HOLCOMB BRIDGE ROAD
SUITE 210
NORCROSS, GEORGIA 30092
(770) 263-9666
TELECOPIER (770) 441-1880
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 May 23, 1997, 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, 1996.
/S/SNYDER CAMP STEWART & CO LLP
---------------------------------
SNYDER, CAMP, STEWART & CO., LLP
Atlanta, Georgia
June 23, 1997
