<PAGE> 1
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-1004
---------------------------
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, 1993 Commission file number 1-5404
OR
/ / Transition Report Pursuant to Section 15(d) of the Securities
Exchange Act of 1934
PRENTICE HALL COMPUTER PUBLISHING
DIVISION RETIREMENT PLAN
---------------------------------
(Full title of the plan)
11711 North College Avenue
Carmel, Indiana 46032
--------------------------
(Address of the plan)
PARAMOUNT COMMUNICATIONS INC.
-----------------------------
(Name of issuer of the securities held pursuant to the plan)
15 Columbus Circle
New York, New York 10023-7780
------------------------------
(Address of principal executive offices)
================================================================================
<PAGE> 2
PRENTICE HALL COMPUTER PUBLISHING DIVISION
RETIREMENT PLAN
INDEX
<TABLE>
<CAPTION>
Page
----
<S> <C>
(a) Financial Statements
Report of Independent Auditors................................................. F-2
Statement of Financial Condition -- December 31, 1993 and 1992................. F-3 - F-4
Statement of Income and Changes in Plan Equity --
Year Ended December 31, 1993 and 1992 and the Period From
November 18, 1991 (inception) to December 31, 1991........................ F-5 - F-7
Notes to Financial Statements.................................................. F 8 - F-11
Schedules
I -- Investments -- December 31, 1993.......................................... S-1
Schedules II and III have been omitted because the required
information is shown in the financial statements.
(b) Exhibits
I -- Consent of Independent Auditors
</TABLE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the persons who administer the Plan have duly caused this annual report to be
signed on its behalf by the undersigned, hereunto duly authorized.
PRENTICE HALL COMPUTER PUBLISHING
DIVISION RETIREMENT PLAN
Date: June 29, 1994 By: /s/ RUDOLPH L. HERTLEIN
--------------------------
Rudolph L. Hertlein
Member of the
Administrative Committee
F-1
<PAGE> 3
REPORT OF INDEPENDENT AUDITORS
The Administrative Committee
Prentice Hall Inc.
We have audited the accompanying statements of financial condition of
Prentice Hall Computer Publishing Division Retirement Plan as of December 31,
1993 and 1992 and the related statements of income and changes in plan equity
for the years ended December 31, 1993 and 1992 and the period from November 18,
1991 (inception) to December 31, 1991, and the schedule of investments as of
December 31, 1993. These financial statements and schedule are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements and schedule 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 and schedule referred to
above present fairly, in all material respects, the financial condition of the
Prentice Hall Computer Publishing Division Retirement Plan at December 31, 1993
and 1992, and the income and changes in plan equity for the years ended
December 31, 1993 and 1992 and the period from November 18, 1991 (inception) to
December 31, 1991 in conformity with generally accepted accounting principles.
New York, New York Ernst & Young
June 17, 1994
F-2
<PAGE> 4
PRENTICE HALL COMPUTER PUBLISHING DIVISION
RETIREMENT PLAN
STATEMENT OF FINANCIAL CONDITION
DECEMBER 31, 1993
<TABLE>
<CAPTION>
PARAMOUNT
COMMUNICATIONS
INC. EQUITY INCOME CLEARING COMBINED
STOCK FUND FUND FUND FUND FUNDS
-------------- ------------ -------------- ------------ --------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments -- Note D and Schedule I
Common Stock of
Paramount Communications Inc.............. $ 708,147 $ 708,147
Other....................................... 7,984 $ 650,893 $ 742,867 $ 13,266 1,415,010
---------- ---------- ---------- ---------- -----------
716,131 650,893 742,867 13,266 2,123,157
Contributions receivable
Employer.................................... 5,463 14,327 16,117 35,907
Employee.................................... 4,653 7,381 12,158 24,192
---------- ---------- ---------- ---------- -----------
10,116 21,708 28,275 60,099
Dividends and interest receivable.............. 1,830 31 1,861
Interfund receivables (payables)............... (91,241) 49,279 41,962 -0-
Forfeitures.................................... (16,325) (16,368) (15,957) 48,650 -0-
---------- ---------- ---------- ---------- -----------
TOTAL ASSETS.......................... $ 620,511 $ 705,512 $ 797,147 $ 61,947 $ 2,185,117
========== ========== ========== ========== ===========
PLAN EQUITY
Plan Equity -- including net unrealized
appreciation of investments -- Note C...... $ 620,511 $ 705,512 $ 797,147 $ 61,947 2,185,117
========== ========== ========== ========== ===========
</TABLE>
See notes to financial statements.
F-3
<PAGE> 5
PRENTICE HALL COMPUTER PUBLISHING DIVISION
RETIREMENT PLAN
STATEMENT OF FINANCIAL CONDITION
DECEMBER 31, 1992
<TABLE>
<CAPTION>
PARAMOUNT
COMMUNICATIONS
INC. EQUITY INCOME CLEARING COMBINED
STOCK FUND FUND FUND FUND FUNDS
-------------- ------ ------ -------- --------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments -- Note D
Common Stock of
Paramount Communications Inc............. $ 278,100 $ 278,100
Other....................................... 6,955 $ 388,655 $ 425,426 $ 6,791 827,827
--------- --------- --------- -------- -----------
285,055 388,655 425,426 6,791 1,105,927
Contributions receivable
Employer.................................... 196 75 (77) 194
Employee.................................... 207 158 (153) 212
--------- --------- --------- -----------
403 233 (230) 406
Dividends and interest receivable.............. 1,219 13 1,232
Interfund receivables (payables)............... (3,526) 3,526 -0-
Forfeitures.................................... (334) (452) (306) 1,092 -0-
--------- --------- --------- -------- -----------
TOTAL ASSETS................................ $ 282,817 $ 388,436 $ 424,890 $ 11,422 $ 1,107,565
========= ========= ========= ======== ===========
LIABILITIES AND PLAN EQUITY
Distributions payable
Cash........................................ $ 714 $ 325 $ 1,039
Plan Equity -- including net unrealized
appreciation (depreciation) of investments
-- Note C................................... $ 282,817 387,722 424,565 $ 11,422 1,106,526
--------- --------- --------- -------- -----------
TOTAL LIABILITIES AND PLAN EQUITY........ $ 282,817 $ 388,436 $ 424,890 $ 11,422 $ 1,107,565
========= ========= ========= ======== ===========
</TABLE>
See notes to financial statements.
F-4
<PAGE> 6
PRENTICE HALL COMPUTER PUBLISHING DIVISION
RETIREMENT PLAN
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
YEAR ENDED DECEMBER 31, 1993
<TABLE>
<CAPTION>
PARAMOUNT
COMMUNICATIONS
INC. EQUITY INCOME CLEARING COMBINED
STOCK FUND FUND FUND FUND FUNDS
-------------- ------ ------ -------- --------
<S> <C> <C> <C> <C> <C>
Net investment income
Dividends on Paramount Communications Inc.
Common Stock............................... $ 5,762 $ 5,762
Interest income............................... 273 $ 1 $ 2 $ 424 700
Administrative expenses....................... (20,668) (20,668)
--------- --------- --------- -------- -----------
6,035 1 2 (20,244) (14,206)
Net realized gain on disposition of
investments -- Note C......................... 170 3,572 2,627 6,369
Unrealized appreciation of
investments -- Note C......................... 258,319 46,150 27,938 332,407
Contributions
Employer...................................... 109,405 170,820 196,882 477,107
Employee...................................... 93,197 87,998 148,525 329,720
Rollovers from non-affiliated plans.............. 4,029 23,061 30,497 3,086 60,673
--------- --------- --------- -------- -----------
471,155 331,602 406,471 (17,158) 1,192,070
Withdrawals and terminations
Paid in cash.................................. (23,351) (38,725) (51,403) (113,479)
Forfeitures...................................... (18,874) (24,312) (24,497) 67,683 -0-
Interfund transfers.............................. (91,236) 49,225 42,011 -0-
--------- --------- --------- -------- -----------
Income and changes in Plan Equity for the year... 337,694 317,790 372,582 50,525 1,078,591
Plan Equity at beginning of year................. 282,817 387,722 424,565 11,422 1,106,526
--------- --------- --------- -------- -----------
Plan Equity at end of year....................... $ 620,511 $ 705,512 $ 797,147 $ 61,947 $ 2,185,117
========= ========= ========= ======== ===========
</TABLE>
See notes to financial statements.
F-5
<PAGE> 7
PRENTICE HALL COMPUTER PUBLISHING DIVISION
RETIREMENT PLAN
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
YEAR ENDED DECEMBER 31, 1992
<TABLE>
<CAPTION>
PARAMOUNT
COMMUNICATIONS
INC. EQUITY INCOME CLEARING COMBINED
STOCK FUND FUND FUND FUND FUNDS
-------------- ------ ------ -------- --------
<S> <C> <C> <C> <C> <C>
Net investment income
Dividends on Paramount Communications Inc.
Common Stock................................. $ 2,736 $ 2,736
Interest income................................. 537 $ 100 $ 320 $ 76 1,033
Administrative expenses......................... (5,740) (5,740)
--------- --------- --------- -------- -----------
3,273 100 320 (5,664) (1,971)
Net realized gain (loss) on disposition of
investments -- Note C........................... (311) 97 595 381
Unrealized appreciation (depreciation) of
investments -- Note C........................... (2,492) 26,991 17,095 41,594
Contributions
Employer........................................ 77,594 111,375 152,167 341,136
Employee........................................ 84,121 107,914 132,577 324,612
Rollovers from non-affiliated plans................ 116,060 157,878 162,584 436,522
--------- --------- --------- -------- -----------
278,245 404,355 465,338 (5,664) 1,142,274
Withdrawals and terminations
Paid in cash.................................... (7,423) (27,252) (51,383) (86,058)
Forfeitures........................................ (2,423) (5,440) (9,223) 17,086 -0-
Interfund transfers................................ 3,540 (523) (3,017) -0-
--------- --------- --------- -------- -----------
Income and changes in Plan Equity for the year..... 271,939 371,140 401,715 11,422 1,056,216
Plan Equity at beginning of year................... 10,878 16,582 22,850 -0- 50,310
--------- --------- --------- -------- -----------
Plan Equity at end of year......................... $ 282,817 $ 387,722 $ 424,565 $ 11,422 $ 1,106,526
========= ========= ========= ======== ===========
</TABLE>
See notes to financial statements.
F-6
<PAGE> 8
PRENTICE HALL COMPUTER PUBLISHING DIVISION
RETIREMENT PLAN
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
PERIOD FROM NOVEMBER 18, 1991 (INCEPTION) TO DECEMBER 31, 1991
<TABLE>
<CAPTION>
PARAMOUNT
COMMUNICATIONS
INC. EQUITY INCOME COMBINED
STOCK FUND FUND FUND FUNDS
---------- --------- -------- --------
<S> <C> <C> <C> <C>
Contributions
Employer.............................................. $ 5,889 $ 9,650 $ 14,261 $ 29,800
Employee.............................................. 4,989 6,932 8,589 20,510
-------- -------- -------- --------
Income and changes in Plan Equity for the period......... 10,878 16,582 22,850 50,310
Plan Equity at beginning of period....................... -0- -0- -0- -0-
-------- -------- -------- --------
Plan Equity at end of period............................. $ 10,878 $ 16,582 $ 22,850 $ 50,310
======== ======== ======== ========
</TABLE>
See notes to financial statements.
F-7
<PAGE> 9
PRENTICE HALL COMPUTER PUBLISHING DIVISION
RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE A - ACCOUNTING POLICIES
The accounting records of Prentice Hall Computer Publishing Division
Retirement Plan (the "Plan") are maintained on the accrual basis. The Plan
is subject to the Employee Retirement Income Security Act of 1974.
Investments are stated at aggregate current value. Investments in
securities which are traded on national securities exchanges are valued at
the last reported sales price on the last business day of the year;
investments traded in the over-the-counter market and listed securities for
which no sale was reported on that date are valued at the mean between the
last reported bid and ask prices. The Investment Pricing Department of the
Trustee establishes current values for other investments which do not have
an established market.
All costs and expenses incurred with regard to the purchase, sale or
transfer of investments are borne by the Plan. Expenses for administering
the Plan may be paid by using Members' forfeitures.
Security transactions are recorded on the trade date.
The change in the difference between current value and the cost of
investments is reflected in the Statement of Income and Changes in Plan
Equity as unrealized appreciation (depreciation) of investments.
Net realized gain (loss) on disposition of investments represents the
difference between the proceeds received and the average cost of
investments sold.
NOTE B - INCOME TAX STATUS
The Plan received a favorable determination letter from the Internal
Revenue Service, dated July 23, 1993, with respect to the qualified status of
the Plan under Section 401 of the Internal Revenue Code (the "Code") and the
tax-exempt status of the underlying trust under Section 501 of the code.
The Plan is exempt from federal income tax and the Member will not be subject
to federal income tax with respect to contributions made by the Employer to the
Member's account and any earnings thereon or earnings on all Member
contributions while such amounts are held in trust. The Administrative
Committee is not aware of any course of action or series of events that have
occurred that might adversely affect the Plan's qualified status.
F-8
<PAGE> 10
PRENTICE HALL COMPUTER PUBLISHING DIVISION
RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE C - INVESTMENTS IN SECURITIES
The net unrealized appreciation (depreciation) of investments included in
Plan Equity is as follows:
<TABLE>
<CAPTION>
PARAMOUNT
COMMUNICATIONS
INC. EQUITY INCOME COMBINED
STOCK FUND FUND FUND FUNDS
-------------- ------ ------ --------
<S> <C> <C> <C> <C>
Balance at December 31, 1991......... $ -0- $ -0- $ -0- $ -0-
Change............................... (2,492) 26,991 17,095 41,594
--------- -------- -------- ---------
Balance at December 31, 1992......... (2,492) 26,991 17,095 41,594
Change............................... 258,319 46,150 27,938 332,407
--------- -------- -------- ---------
Balance at December 31, 1993......... $ 255,827 $ 73,141 $ 45,033 $ 374,001
========= ======== ======== =========
</TABLE>
The net realized gain (loss) on disposition of investments was computed as
follows:
<TABLE>
<CAPTION>
PARAMOUNT
COMMUNICATIONS
INC. EQUITY INCOME COMBINED
STOCK FUND FUND FUND FUNDS
-------------- ------ ------ --------
<S> <C> <C> <C> <C>
Year ended December 31, 1993
Proceeds........................ $ 205,962 $ 38,689 $ 45,211 $ 289,862
Cost-average.................... 205,792 35,117 42,584 283,493
--------- --------- --------- -----------
Net realized gain.................. $ 170 $ 3,572 $ 2,627 $ 6,369
========= ========= ========= ===========
Year ended December 31, 1992
Proceeds........................ $ 365,953 $ 364,614 $ 408,415 $ 1,138,982
Cost-average.................... 366,264 364,517 407,820 1,138,601
--------- --------- --------- -----------
Net realized gain (loss)........... $ (311) $ 97 $ 595 $ 381
========= ========= ========= ===========
</TABLE>
As of December 31, 1991, the Plan had no investments.
F-9
<PAGE> 11
PRENTICE HALL COMPUTER PUBLISHING DIVISION
RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS (continued)
The Fair value of individual investments exclusive of common Stock of
Paramount Communications Inc., that represents 5% or more of the Plan's net
assets are as follows:
<TABLE>
<CAPTION>
December
-------------
1993 1992
----- -----
<S> <C> <C>
Bankers Trust Pyramid Equity
Index Fund $650,893 $388,655
Bankers Trust Pyramid United States
Government Plus Bond Fund $742,867 $425,426
</TABLE>
The Plan Equity available to Members in each fund at December 31, 1993
and 1992 was as follows:
<TABLE>
<CAPTION>
UNITS UNIT
FUND OUTSTANDING VALUE PLAN EQUITY
---- ----------- ----- -----------
<S> <C> <C> <C>
December 31, 1993
Paramount Communications
Inc. Stock Fund ......................... 302,676.020 2.05008312 $ 620,511
Equity Fund ............................... 592,535.300 1.19066662 705,512
Income Fund ............................... 699,948.700 1.13886494 797,147
-----------
Plan Equity available
to Members .............................. 2,123,170
Clearing Fund ............................. 61,947
-----------
Plan Equity ............................... $ 2,185,117
===========
December 31, 1992
Paramount Communications
Inc. Stock Fund ......................... 237,565.657 1.19047931 $ 282,817
Equity Fund ............................... 358,225.997 1.08233909 387,722
Income Fund ............................... 393,672.784 1.07847181 424,565
-----------
Plan Equity available
to Members .............................. 1,095,104
Clearing Fund ............................. 11,422
-----------
Plan Equity ............................... $ 1,106,526
===========
F-10
</TABLE>
<PAGE> 12
PRENTICE HALL COMPUTER PUBLISHING DIVISION
RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE D - INVESTMENT PROGRAMS
The investment programs of the Plan are as follows:
Member contribution - A Member may contribute to the Plan from 1% to
16% of the Member's base pay, including certain commissions, subject to
adjustment to comply with law. A Member's contributions can be made with
pre-tax or post-tax dollars, subject to an overall maximum of 10% on pre-tax
contributions. A Member may change or suspend the amount of the Member's
contribution at any time effective as of the first payday of any calendar
quarter, however, any suspension of contributions must be for a minimum of
ninety days.
Employer contribution - The Employer will provide a matching
contribution of 50% of the first 6% of each Member's contribution. In
addition, the Employer shall contribute a retirement contribution in an
amount equal to 3 1/2% of each Member's eligible compensation. Members
vest in the Employer's matching and retirement contributions after the
completion of one full year of service at a rate of 20% for each of the
next four full years of service with an additional 20% after the completion
of five years of service. Amounts which have been forfeited in accordance
with provisions of the Plan may be used to defray administrative expenses
or reduce future Employer contributions. Members may invest their
contributions and the Employer's matching and retirement contributions in
one or more of the following investment programs in units of 10%.
Paramount Communications Inc. Stock Fund
This fund is invested in Paramount Communications Common Stock.
Dividends received on stock in the fund are reinvested in Paramount
Communications Common Stock. Chemical Banking Corporation is the
trustee of this fund.
Equity Fund
This fund invests in equity securities, securities convertible into
equity securities and/or a commingled equity trust and is designed to
approximate the performance of the Standard & Poor's 500 Stock Index.
Bankers Trust Company is the trustee and investment manager of this
fund.
Income Fund
This fund invests in securities issued by insurance companies,
financial institutions and the U.S. Government and its agencies.
This fund is designed to preserve capital, but it is not risk free.
Bankers Trust Company is the trustee and investment manager of this
fund.
Such direction may be revised by the Member quarterly.
The number of Members in each fund at December 31, 1993 was as follows:
Paramount Communications Inc. Stock Fund......... 241
Income Fund...................................... 350
Equity Fund...................................... 292
The total number of Members in the Plan was less than the sum of the
number of Members shown above because many of the Members participated in
more than one fund.
NOTE E - DISTRIBUTIONS PAYABLE
As of December 31, 1993, there were $134,796 of assets that have been
allocated to participants who have withdrawn from the Plan as of year-end,
but for which disbursement of those funds from the Plan has not yet been
made.
NOTE F - SUBSEQUENT EVENT
Pursuant to an Amended and Restated Agreement and Plan of Merger dated
as of February 4, 1994 (as subsequently amended, the "Merger Agreement")
between Viacom Inc. ("Viacom") and Paramount Communications Inc. ("PCI"),
PCI will become a wholly owned subsidiary of Viacom at the effective time of
the merger. In March 1994, pursuant to the related tender offer, all shares
of PCI held by the Plan were tendered to Viacom. The Plan has received cash
of $107 per share for approximately half of the tendered shares and will
receive certain securities of Viacom for its remaining shares of PCI upon
completion of the merger in July 1994.
F-11
<PAGE> 13
SCHEDULE I
PRENTICE HALL COMPUTER PUBLISHING DIVISION
RETIREMENT PLAN
INVESTMENTS
DECEMBER 31, 1993
<TABLE>
<CAPTION>
SHARES OR APPROXIMATE
PRINCIPAL MARKET
AMOUNT COST VALUE
--------- --------- -----------
<S> <C> <C> <C>
PARAMOUNT COMMUNICATIONS
INC. STOCK FUND
Paramount Communications Inc.
Common Stock .............................. 9,108 $ 452,320 $ 708,147
Chemical Banking Corporation
Temporary Investment Fund ................. 7,984 7,984 7,984
---------- ----------
TOTAL PARAMOUNT COMMUNICATIONS
INC. STOCK FUND ........................... 460,304 716,131
EQUITY FUND
Bankers Trust Pyramid Equity
Index Fund .................................. 658 577,752 650,893
INCOME FUND
Bankers Trust Pyramid United States
Government Plus Bond Fund ................... 439,008 697,834 742,867
CLEARING FUND
Chemical Banking Corporation Temporary
Investment Fund ............................. 13,266 13,266 13,266
---------- ----------
TOTAL INVESTMENTS ......................... $1,749,156 $2,123,157
========== ==========
</TABLE>
S-1
<PAGE> 14
EXHIBIT I
<PAGE> 15
EXHIBIT I
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration
Statement (Form S-8 No. 33-46900) pertaining to the Prentice Hall Computer
Publishing Division Retirement Plan (the "Plan") and in the related
Prospectus of our report dated June 17, 1994, with respect to the financial
statements and schedule of the Plan included in this Annual Report (Form
11-K) for the year ended December 31, 1993.
New York, New York Ernst & Young
June 24, 1994
