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 0-6547
A. Full title of the plan and the address of the plan, if
different from that of the issuer named below: MCI
Communications Corporation Retirement Savings Plan - Part II
of the MCI Communications Corporation Employee Stock
Ownership Plan and 401(k)
B. Name of issuer of the securities held pursuant to the plan
and the address of its principal executive office: MCI
Communications Corporation, 1801 Pennsylvania Avenue, NW,
Washington, DC 20006
Page 1
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MCI COMMUNICATIONS CORPORATION
RETIREMENT SAVINGS PLAN
EIN: 52-0886267
INDEX TO FINANCIAL STATEMENTS AND SCHEDULES
Page(s)
-------
Report of Independent Accountants 3
Statements of Net Assets Available for Benefits
at December 31, 1995 and 1994 4
Statements of Changes in Net Assets Available for
Benefits for the years ended December 31, 1995 and 1994 5,6
Notes to Financial Statements 7-43
Additional Information:
Schedule I.
Schedule of Assets Held for
Investment Purposes at
December 31, 1995 44
Schedule II.
Schedule of Reportable
Transactions for the year
ended December 31, 1995 45
Signature 46
Exhibits:
23. Consent of Independent Accountants 47
99. Certification Regarding Certain
Investment Arrangements 48
Page 2
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Participants and Administrative
Committee of the MCI Communications Corporation
Retirement Savings Plan
In our opinion, the accompanying statements of net assets available for benefits
and the related statements of changes in net assets available for benefits
present fairly, in all material respects, the net assets available for benefits
of the MCI Communications Corporation Retirement Savings Plan - Part II of the
MCI Communications Corporation Employee Stock Ownership Plan and 401(k) 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. 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 of these statements in
accordance with generally accepted auditing standards which 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, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for the opinion expressed
above.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information included in
Schedules I and II is presented for purposes of additional analysis and is not a
required part of the basic financial statements, but is additional information
required by the Employee Retirement Income Security Act of 1974, as amended.
Such information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and, in our opinion, is fairly stated in
all material respects in relation to the basic financial statements taken as a
whole.
PRICE WATERHOUSE LLP
PRICE WATERHOUSE LLP
Washington, D. C.
June 14, 1996
Page 3
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MCI COMMUNICATIONS CORPORATION
RETIREMENT SAVINGS PLAN
EIN: 52-0886267
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31
-----------
1995 1994
------------ -------------
Value of interest in master trust $537,827,481 $347,560,842
------------ ------------
Net assets available for benefits $537,827,481 $347,560,842
============ ============
See accompanying notes to the financial statements.
Page 4
<PAGE>
MCI COMMUNICATIONS CORPORATION
RETIREMENT SAVINGS PLAN
EIN: 52-0886267
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1995
ADDITIONS
- ---------
Contributions:
Participants $ 59,322,084
Non-cash employer 32,177,951
Rollovers 6,383,842
Transfers from ESOP 722,038
------------
Total contributions 98,605,915
------------
Earnings on investments:
Interest on participant loans 1,508,423
Interest on guaranteed investment contracts 6,443,825
Dividends on common stock 399,550
Net gain on disposition of assets 2,224,386
Unrealized appreciation 57,379,129
Net gain from registered investment companies 48,750,925
------------
Total earnings on investments 116,706,238
------------
Total additions 215,312,153
------------
DEDUCTIONS
- ----------
Participant benefit payments 27,557,702
Fees 80,508
------------
Net increase 187,673,943
Net interplan transfers 2,592,696
Net assets available for benefits, at
beginning of year 347,560,842
------------
Net assets available for benefits, at
end of year $537,827,481
============
See accompanying notes to the financial statements.
Page 5
<PAGE>
MCI COMMUNICATIONS CORPORATION
RETIREMENT SAVINGS PLAN
EIN: 52-0886267
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1994
ADDITIONS
- ---------
Contributions:
Participants $ 51,907,550
Non-cash employer 28,532,919
Rollovers 12,723,822
Non-cash supplemental 16,658,582
Transfers from ESOP 163,105
-------------
Total contributions 109,985,978
-------------
Earnings on investments:
Interest on participant loans 681,957
Interest on guaranteed investment contracts 5,592,442
Dividends on common stock 303,588
Net (loss) on disposition of assets (1,245,716)
Unrealized (depreciation) (57,412,969)
Net gain from registered investment companies 1,275,342
-------------
Total (losses) on investments (50,805,356)
-------------
Total additions 59,180,622
-------------
DEDUCTIONS
- ----------
Participant benefit payments 13,106,868
-------------
Net increase 46,073,754
Net interplan transfers 3,079,747
Net loans (13,037)
Net assets available for benefits, at
beginning of year 298,420,378
-------------
Net assets available for benefits, at
end of year $ 347,560,842
=============
See accompanying notes to the financial statements.
Page 6
<PAGE>
MCI COMMUNICATIONS CORPORATION
RETIREMENT SAVINGS PLAN
EIN: 52-0886267
NOTES TO FINANCIAL STATEMENTS ON FORM 11-K
December 31, 1995 and 1994
NOTE 1 - DESCRIPTION OF THE PLAN
The following brief description of the MCI Communications Corporation Retirement
Savings Plan (the "Plan" or "RSP") is provided for general information purposes
only. Participants should refer to the Plan document for more complete
information. The Plan is subject to the applicable provisions of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA").
Effective July 1, 1988, MCI Communications Corporation (the "Company") added a
401(k) deferral feature, called the Retirement Savings Plan, as Part IV to its
employee stock ownership plan and renamed the combined plan the MCI
Communications Corporation Employee Stock Ownership Plan and 401(k). Effective
October 1, 1993, the Plan was amended and restated to make changes deemed
necessary or advisable to comply with applicable law and make other changes
deemed desirable in order to effectuate the general purpose of the Plan. The MCI
Communications Corporation Employee Stock Ownership Plan and 401(k) is comprised
of two parts: Part I is an employee stock ownership plan, Part II (formerly Part
IV) is the Retirement Savings Plan. The accompanying financial statements are
solely those of Part II, the MCI Communications Corporation Retirement Savings
Plan, and are not intended to present the net assets available for benefits or
the changes in net assets available for benefits of the MCI Communications
Corporation Employee Stock Ownership Plan and 401(k) taken as a whole. The
Company separately prepares an annual report on the overall MCI Communications
Corporation Employee Stock Ownership Plan and 401(k) which is submitted to the
Internal Revenue Service ("IRS") on Form 5500 and is made available to all
employees upon request.
Effective January 1, 1994, the assets of the Retirement Savings Plan were
combined with those of the MCI Consumer Markets 401(k) Plan ("401(k)") into the
MCI Communications Corporation Defined Contribution Master Trust. This change
was made to facilitate the modifications set forth in the paragraphs that
follow. Under the terms of the master trust agreement, each plan has a specific
interest in all assets and liabilities of the trust.
Page 7
<PAGE>
The Plan is a defined contribution, deferred savings plan and was amended
effective January 1, 1994. Under the Plan, employees become eligible to
participate upon completion of one year of service with 1,000 hours of service
and attainment of age 21. Eligible employees may elect to defer up to 15% of
eligible compensation on a pre-tax basis, to be contributed to the Plan by the
Company on behalf of such employees ("Elective Contributions"). Prior to January
1, 1994, employees could defer up to 10% of eligible compensation under the
Plan. The first 6% of each participant's Elective Contributions is eligible for
a Company matching contribution in the form of MCI Communications Corporation
Common Stock. Effective January 1, 1994, the Company's matching contributions
were increased from $.50 to $.67 for each eligible dollar of Elective
Contributions made to the Plan. The Company's matching contribution is made
biweekly and is determined by the closing price of MCI Communications
Corporation Common Stock on the date posted to the participants' accounts.
Participants' Elective Contributions are withheld from their biweekly paychecks
and the Company transfers these contributions to the Plan each pay period.
Participants vest in the Company's matching contributions at a rate of 20% per
year of service and are always 100% vested in their Elective Contributions.
Participants receive a year of service for vesting purposes for each Plan year
during which they complete at least 1,000 hours of service.
As of January 1, 1994, the investment funds available for elective contributions
were increased from four to sixteen funds. Elective Contributions are invested
in any of the sixteen investment funds in accordance with participants'
instructions. The available investment funds are:
- MCI Common Stock Fund
A fund investing in MCI Communications Corporation Common Stock. These
shares of stock are qualified employer securities as defined by ERISA.
- EuroPacific Growth Fund
A long term growth fund invested primarily in securities of issuers
domiciled in Europe and the Pacific Basin. The fund's investment
manager is Capital Research and Management Company.
- Putnam Voyager Fund
A long term growth fund invested in a diversified portfolio of two
types of common stocks: emerging growth stocks and opportunity stocks.
The fund is managed by Putnam Investment Management, Inc.
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<PAGE>
- Dreyfus S&P 500 Stock Index Portfolio
An equity index mutual fund invested in common stock which is
comparable to the Standard & Poor's 500 Composite Stock Index. All
investment decisions are made by Dreyfus Corporation, an affiliate of
the Plan trustee. The trustee oversees the fund in accordance with the
trust agreement.
- Putnam Actively Managed Balanced Fund
A growth and income fund invested in a blend of three Putnam mutual
funds: Putnam Vista Fund, The Fund for Growth and Income and Putnam
Income Fund. The fund is managed by Putnam Investment Management, Inc.
and is subject to the policies established by the funds' Trustees.
- Scudder Income Fund
An income fund invested primarily in high-grade corporate bonds,
convertible bonds and government securities. The fund's investment
management firm is Scudder, Stevens & Clark, Inc. They manage the
fund's daily investment and business affairs subject to the policies
established by the Board of Trustees of Scudder, Stevens & Clark, Inc.
- Putnam OTC Emerging Growth Fund
A growth and income fund invested primarily in "emerging growth" stocks
traded in the over-the-counter (OTC) market. Putnam Investment
Management, Inc. makes the investment decisions for the fund and is
subject to the policies established by the fund's Trustees.
- Putnam New Opportunities Fund
A growth fund invested primarily in common stock of companies in
economic sectors with above-average prospects for growth. Putnam
Investment Management, Inc. makes the investment decisions for the fund
and is subject to the policies established by the fund's Trustees.
- Putnam Vista Fund
A growth fund invested primarily in well-researched growth stocks of
medium-sized companies. Putnam Investment Management, Inc. makes the
investment decisions for the fund and is subject to the policies
established by the fund's Trustees.
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<PAGE>
- Putnam Investors Fund
A growth fund invested primarily in high-quality, domestic, common
stocks. Putnam Investment Management, Inc. makes the investment
decisions for the fund and is subject to the policies established by
the fund's Trustees.
- The Putnam Fund for Growth and Income
A growth and income fund invested primarily in income-producing stocks,
i.e., stocks that pay high dividends. Putnam Investment Management,
Inc. makes the investment decisions for the fund and is subject to the
policies established by the fund's Trustees.
- Putnam Convertible Income-Growth Trust
An income and growth fund invested primarily in convertible bonds and
convertible preferred stocks, but may also invest in common stock and
other nonconvertible securities. Putnam Investment Management, Inc.
makes the investment decisions for the fund and is subject to the
policies established by the fund's Trustees.
- Putnam High Yield Advantage Fund
An income fund invested primarily in lower rated bonds ("junk bonds").
Putnam Investment Management, Inc. makes the investment decisions for
the fund and is subject to the policies established by the fund's
Trustees.
- Putnam Global Government Income Trust
A non-diversified income fund invested principally in debt securities
of foreign or U.S. governmental entities, including supranational
issuers. Putnam Investment Management, Inc. makes the investment
decisions for the fund and is subject to the policies established by
the fund's Trustees.
- Putnam Diversified Income Trust
An income fund invested primarily in U.S. government, high yield and
international fixed income securities. Putnam Investment Management,
Inc. makes the investment decisions for the fund and is subject to the
policies established by the fund's Trustees.
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<PAGE>
- Stable Asset Fund
The fund consists primarily of guaranteed investment contracts (GICs)
issued by insurance companies and contracts with other financial
institutions that offer fixed interest rates on investments. This fund
was formerly known as the Long-Term Fixed Income Fund. The fund seeks
to maintain a constant book value of $1.00 per share. The guaranteed
rates of interest range from 5.6% to 9.1% at December 31, 1995.
The following guaranteed investment contracts were held individually by
the Master Trust as of December 31:
Contract Value
--------------
Contract
1995 1994 Rate
---- ---- ----
Aetna Life Insurance $ 19,041,899 $ 17,859,506 6.63%
Allstate Life Insurance 6,113,549 5,772,945 5.90%
John Hancock Mutual Life Insurance 13,198,728 12,215,389 8.05%
Metropolitan Life Insurance 13,623,754 12,503,446 8.96%
New York Life Insurance 8,281,679 7,753,634 6.82%
New York Life Insurance 5,369,604 0 8.08%
Peoples Security Insurance Company 7,400,229 7,318,368 5.72%
Peoples Security Insurance Company 5,219,396 5,242,046 5.86%
Principal Mutual Life Insurance 14,445,534 19,764,398 9.10%
Prudential Life Insurance 5,634,458 4,975,399 7.00%
TransAmerica Life Insurance 3,426,163 5,139,244 5.60%
TransAmerica Life Insurance 2,543,520 0 7.25%
The cumulative rate was 7.26% and 7.49% for the years ended December 31,
1995 and 1994, respectively.
This fund also includes investment in the Mellon Bank Temporary
Investment Fund (TIF) to satisfy any liquidity needs and also serves as
a temporary account to hold funds from maturing interests.
Effective July 1, 1995, the Plan decreased the number of investment options to
seven funds. Participants with balances in the funds that were eliminated were
allowed to reallocate their fund balances into the seven remaining funds. The
available
Page 11
<PAGE>
investment funds after July 1, 1995 are:
- MCI Common Stock Fund
- EuroPacific Growth Fund
- Putnam Voyager Fund
- Dreyfus S&P 500 Stock Index Portfolio
- Putnam New Opportunities Fund
- Stable Asset Fund;
these six funds are described above, and the
- Putnam Balanced Retirement Fund
A growth and income fund invested in a diversified portfolio of equity
and debt securities. Putnam Investment Management, Inc. makes the
investment decisions for the fund and is subject to the policies
established by the fund's Trustees.
Each individual's investment in the funds is recorded in their participant
account on a unit value basis with the exception of MCI Common Stock Fund which
is recorded on a per share basis. The Plan is processed on a daily valuation
basis. Prior to January 1, 1994, all funds, with the exception of the MCI Common
Stock Fund, were tracked on a dollar valuation basis and were processed on a
monthly valuation basis.
Participants may transfer all or part of the balance in their Elective
Contributions and related earnings from one fund to another once each calendar
month. Participants may reallocate their matching contributions balance that is
100% vested as of the prior year end once per Plan Year. Participants may change
the allocation of their future contributions among funds with unlimited
frequency. Participants' allocations are affected by the last change placed
prior to payroll processing.
In accordance with the terms of the Plan, the Company is entitled to make a
supplemental contribution to the Plan, either in cash or shares of the Company's
Common Stock, in amounts as determined by the Company's Board of Directors. The
supplemental contributions are allocated among Plan participants at the end of
each Plan year based on their eligible compensation. Participants become vested
in their share of the supplemental contribution at the rate of 20% per year of
credited service.
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<PAGE>
There were no supplemental contributions made during the year ended December 31,
1995. During the year ended December 31, 1994, a supplemental contribution of
1.87% of the eligible compensation of all employees who had fulfilled the
eligibility requirements for the Plan was made. This contribution in the amount
of $16,658,582, was made in the form of 728,244 shares of the Company's Common
Stock.
The Plan allows participants to borrow up to one-half of their vested account
balances (or $50,000, whichever is less). The minimum loan amount is $1,000 and
the minimum term of a loan is one year. The maximum term of a loan is five years
for a general purpose loan and fifteen years for a primary residence loan. Only
one loan of each type, general purpose and primary residence, may be outstanding
at any time. Effective January 1, 1995, the Plan charges a $30 origination fee
for loans. Loan proceeds are disbursed pro rata from each of the participants'
investment funds, and are repaid through biweekly payroll deductions. Loan
repayments of principal and interest are invested based on the participants'
current investment elections. Interest rates for new loans are determined
monthly based on the prime rate as published on the first business day of each
month in THE WALL STREET JOURNAL, plus one percentage point. The interest rate
is fixed for the term of the loan. Loans can be repaid in full by a cashier's or
certified check. During the Plan years ended December 31, 1995 and 1994,
$11,419,704 and $12,314,062 in loans were disbursed and principal repayments of
$6,720,130 and $4,018,930, respectively, were made.
Certain participants have the right to diversify a portion of their account in
the Employee Stock Ownership Plan (ESOP), Part I of the MCI Communications
Corporation Employee Stock Ownership Plan and 401(k) and transfer a portion of
their account to the 401(k). Participants in the ESOP, who have attained at
least 55 years of age and have been a member of the ESOP for at least ten years,
are eligible to diversify under these provisions. During 1995 and 1994, 32,820
and 7,732 shares of MCI Communications Corporation Common Stock at a fair market
value on the diversification date of $722,038 and $163,105, respectively, were
transferred from the ESOP to the RSP pursuant to these provisions. In addition
to ESOP diversification, during 1995 and 1994, 238,173 and 730 shares of MCI
Communications Corporation Common Stock at a fair market value on the
diversification date of $5,656,455 and $16,151, respectively, were transferred
from the Employer Matching Contributions accounts to the Elective Contributions
accounts pursuant to these provisions.
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<PAGE>
Distribution of the benefits in a participant's Plan account is normally made
only after the participant ceases to be an employee of the Company. However, the
account balance of a participant's Elective Contributions may be withdrawn prior
to termination of employment if the participant is under age 59 1/2 and can
demonstrate an economic hardship (as defined in the Plan). A participant who has
attained age 59 1/2 may withdraw all or any portion of his Elective
Contributions account in accordance with the terms of the Plan. Upon termination
of employment, a participant receives all vested assets in accounts established
on his behalf under the Plan. Non-vested portions of a terminated participant's
accounts are forfeited and used to offset future Company matching contributions.
Effective January 1, 1995, participants who terminate employment and elect to
keep their funds in the Plan are charged a $20 annual account maintenance fee.
The Plan was amended effective January 24, 1995, to provide for the distribution
in a lump sum of terminated participant accounts with a vested balance of less
than $3,500. This distribution occurs no sooner than six months after the
participant's termination of employment date. As of December 31, 1995 and 1994,
forfeitures included in the Plan were $695,734 and $67,466, respectively, which
included 26,163 and 3,229 forfeited shares of MCI Communications Corporation
Common Stock, at year-end fair market values of $683,508 and $59,333,
respectively.
The Plan is not a defined benefit plan and accordingly, Plan benefits are not
guaranteed by the Pension Benefit Guaranty Corporation. The Company is the plan
administrator and has appointed an Administrative Committee to administer the
Plan. The Administrative Committee is responsible for carrying out the
provisions of the Plan and may employ such experts as deemed necessary. Plan
assets are held by the trustee, Mellon Bank, N.A. of Pittsburgh, Pennsylvania.
The recordkeeper for the Plan is Putnam Investments, Inc. The Company reserves
its rights under the Plan to discontinue its contributions and to terminate the
Plan at any time. Upon such termination, all amounts funded shall become
nonforfeitable and shall be provided for and paid from the Plan's trust in
accordance with the order of priority set forth in Section 4044 of ERISA. The
Company has not expressed any intention to discontinue its contributions nor to
terminate the Plan.
The Plan's holdings of MCI Communications Corporation Common Stock, various
Putnam Investments, Inc. mutual funds, and a Mellon Bank mutual fund and
collective trust account are party-in-interest investments.
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<PAGE>
NOTE 2 - DESCRIPTION OF ACCOUNTING PRINCIPLES AND PRACTICES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of changes in net assets available for benefits during the
reporting period. Actual results could differ from those estimates.
The financial statements for the Plan are prepared on the accrual basis of
accounting.
The Plan's distribution of the Company's Common Stock to participants is at the
fair market value as of the distribution date. The difference between the fair
market value on the date of distribution and the carrying value to the Plan of
the distributed shares is recorded as a net gain or loss on disposition of
assets. Purchase and sales of securities are recorded on the trade date.
The Plan's interest in registered investment companies and employer securities
are stated at fair value, measured by the quoted current market price. Units in
collective trusts are valued at the net asset value as reported by such trusts
at the end of each period. Funds invested in guaranteed investment contracts are
stated at contract value, measured as cost plus earned interest income. During
1995, the Plan adopted American Institute of Certified Public Accountants
Statement of Position 94-4, "Reporting of Investment Contracts Held by Health
and Welfare Benefit Plans and Defined Contribution Pension Plans." Defined
contribution plans should report fully-benefit responsive investment contracts
at contract value, which may or may not be equal to fair value, and all other
investment contracts at fair value. All guaranteed investment contracts held by
the Plan at December 31, 1995 were fully-benefit responsive, and therefore are
valued at contract value.
Participant loans are valued at cost which approximates fair value.
Administrative expenses of the Plan are paid by the Company.
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<PAGE>
NOTE 3 - MASTER TRUST
Effective January 1, 1994, MCI Communications Corporation established the MCI
Communications Corporation Defined Contribution Master Trust (the "Master
Trust", for the purpose of facilitating modifications to the Plan. The Master
Trust is intended to be a tax-exempt trust within the meaning of Section 501(a)
of the Internal Revenue Code. The administration of the Master Trust is the
responsibility of the trustee. All Plan investments are included in the Master
Trust.
The Master Trust consists of a pool of individual investments in which the Plan
and the 401(k) have a shared participation through Master Trust units. Net
assets and net investment gains and losses are allocated to each participating
plan based on units of participation held by the respective plans. Each unit
represents a proportionate, specific interest in the Master Trust. The Plan had
a specific interest in the Master Trust of $537,827,481 and $347,560,842
representing approximately 89% and 90% of the net assets of the Master Trust as
of December 31, 1995 and 1994, respectively.
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<PAGE>
The fund information below presents the percentage interest of each plan in the
Master Trust using specific identification:
<TABLE>
Percentage Interest
<CAPTION>
Master Trust -------------------
Plan Name Investment Account 12/31/95 12/31/94
- --------------------- ---------------------------------- -------- --------
<S> <C> <C> <C>
MCI Communications EuroPacific Growth Fund 87.35% 89.12%
Corporation Putnam Balanced Fund 0.00% 89.02%
Retirement Savings Scudder Income Fund 0.00% 89.78%
Plan Dreyfus S&P 500 Stock Index 88.43% 88.08%
EIN: 52-0886267 Putnam Growth & Income 0.00% 88.94%
Putnam Investors Fund 0.00% 92.62%
Putnam Vista Fund 0.00% 91.62%
Putnam Voyager Fund 92.20% 92.79%
Putnam Convertible Income-Growth 0.00% 93.25%
Putnam High Yield Advantage 0.00% 90.68%
Putnam Global Gov't Income 0.00% 91.76%
Putnam OTC Emerging Growth 0.00% 92.09%
Putnam Diversified Income 0.00% 86.85%
Stable Asset Fund 90.52% 89.64%
Putnam New Opportunities 88.39% 91.81%
Putnam Balanced Retirement 87.94% 0.00%
MCI Common Stock 88.40% 89.95%
Participant Loans 87.88% 88.55%
MCI Consumer Markets EuroPacific Growth Fund 12.65% 10.88%
401(k) Plan Putnam Balanced Fund 0.00% 10.98%
EIN: 13-2745892 Scudder Income Fund 0.00% 10.22%
Dreyfus S&P 500 Stock Index 11.57% 11.92%
Putnam Growth & Income 0.00% 11.06%
Putnam Investors Fund 0.00% 7.38%
Putnam Vista Fund 0.00% 8.38%
Putnam Voyager Fund 7.80% 7.21%
Putnam Convertible Income-Growth 0.00% 6.75%
Putnam High Yield Advantage 0.00% 9.32%
Putnam Global Gov't Income 0.00% 8.24%
Putnam OTC Emerging Growth 0.00% 7.91%
Putnam Diversified Income 0.00% 13.15%
Stable Asset Fund 9.48% 10.36%
Putnam New Opportunities 11.61% 8.19%
Putnam Balanced Retirement 12.06% 0.00%
MCI Common Stock 11.60% 10.05%
Participant Loans 12.12% 11.45%
</TABLE>
The following pages present the net assets available for benefits and changes in
net assets available for benefits for the Master Trust in which the Plan and
401(k) participate.
Page 17
<PAGE>
<TABLE>
MCI COMMUNICATIONS CORPORATION
DEFINED CONTRIBUTION MASTER TRUST
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1995
<CAPTION>
EuroPacific Dreyfus Putnam Stable
Growth S&P 500 Voyager Asset
Fund Stock Index Fund Fund
ASSETS ------------- ------------- ------------- -------------
------
<S> <C> <C> <C> <C>
Contribution receivables:
Employee $ 14,237 $ 22,898 $ 46,507 $ 40,196
Employer 0 0 0 0
------------- ------------- ------------- -------------
Total contribution receivables 14,237 22,898 46,507 40,196
Non-interest bearing cash 1,652 72,460 88,919 144,577
Other receivables 258,009 334,968 60,967 1,478
Investments, at fair value:
Common stock 0 0 0 0
Common/collective trusts 14 12,491 1,703 1,584,427
Registered investment companies 14,850,336 58,410,869* 107,447,827* 0
Participant loans 0 0 0 0
Investments, at contract value:
Value of guaranteed investment contracts 0 0 0 104,298,513*
------------- ------------- ------------- -------------
Total assets 15,124,248 58,853,686 107,645,923 106,069,191
------------- ------------- ------------- -------------
LIABILITIES
-----------
Operating payables 258,009 334,957 88,909 25,089
------------- ------------- ------------- -------------
Net assets available for benefits $ 14,866,239 $ 58,518,729 $107,557,014 $106,044,102
============= ============= ============= =============
Participating Plan Interests
- ----------------------------
MCI Communications Retirement Savings Plan $ 12,985,468 $ 51,748,402 $ 99,167,158 $ 95,991,937
MCI Consumer Markets 401(k) Plan 1,880,771 6,770,327 8,389,856 10,052,165
------------- ------------- ------------- -------------
Total $ 14,866,239 $ 58,518,729 $107,557,014 $106,044,102
============= ============= ============= =============
<FN>
* Investment represents 5% or more of the Trust's net assets.
</FN>
</TABLE>
Page 18
<PAGE>
<TABLE>
MCI COMMUNICATIONS CORPORATION
DEFINED CONTRIBUTION MASTER TRUST
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1995
<CAPTION>
Putnam Putnam MCI
New Balanced Common Participant
Opportunities Retirement Stock Loans Total
ASSETS ------------- ------------- ------------- ------------ -------------
------
<S> <C> <C> <C> <C> <C>
Contribution receivables:
Employee $ 26,865 $ 19,313 $ 51,919 $ 0 $ 221,935
Employer 0 0 126,693 0 126,693
------------- ------------- ------------- ------------ -------------
Total contribution receivables 26,865 19,313 178,612 0 348,628
Non-interest bearing cash 0 0 0 0 307,608
Other receivables 17,119 177,650 0 0 850,191
Investments, at fair value:
Common stock 0 0 246,431,822* 0 246,431,822
Common/collective trusts 1,395 1,213 22,393 0 1,623,636
Registered investment companies 28,406,193 19,099,867 0 0 228,215,092
Participant loans 0 0 0 20,447,333 20,447,333
Investments, at contract value:
Value of guaranteed investment contracts 0 0 0 0 104,298,513
------------- ------------- ------------- ------------ -------------
Total assets 28,451,572 19,298,043 246,632,827 20,447,333 602,522,823
------------- ------------- ------------- ------------ -------------
LIABILITIES
-----------
Operating payables 0 193,585 0 0 900,549
------------- ------------- ------------- ------------ -------------
Net assets available for benefits $ 28,451,572 $ 19,104,458 $246,632,827 $20,447,333 $601,622,274
============= ============= ============= ============ =============
Participating Plan Interests
- ----------------------------
MCI Communications Retirement Savings Plan $ 25,147,778 $ 16,800,069 $218,017,594 $17,969,075 $537,827,481
MCI Consumer Markets 401(k) Plan 3,303,794 2,304,389 28,615,233 2,478,258 63,794,793
------------- ------------- ------------- ------------ -------------
Total $ 28,451,572 $ 19,104,458 $246,632,827 $20,447,333 $601,622,274
============= ============= ============= ============ =============
<FN>
* Investment represents 5% or more of the Trust's net assets.
</FN>
</TABLE>
Page 19
<PAGE>
<TABLE>
MCI COMMUNICATIONS CORPORATION
DEFINED CONTRIBUTION MASTER TRUST
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1994
<CAPTION>
EuroPacific Putnam Scudder Dreyfus Putnam Putnam
Growth Balanced Income S&P 500 Growth & Investors
Fund Fund Fund Stock Index Income Fund
ASSETS ----------- ----------- ----------- ------------ ----------- ---------
------
<S> <C> <C> <C> <C> <C> <C>
Contributions receivable:
Employee $ 10,921 $ 6,530 $ 3,005 $ 21,810 $ 2,677 $ 640
Employer 0 0 0 0 0 0
----------- ----------- ----------- ------------ ----------- ---------
Total contributions receivable 10,921 6,530 3,005 21,810 2,677 640
Other receivables 8,777 5,944 0 30,605 348 182
Investments, at fair value:
Common stock 0 0 0 0 0 0
Common/collective trusts 0 0 0 125 0 0
Registered investment companies 6,427,590 3,512,185 1,874,242 36,015,159* 1,909,296 430,005
Participant loans 0 0 0 0 0 0
Investments, at contract value:
Value of guaranteed investment contracts 0 0 0 0 0 0
----------- ----------- ----------- ------------ ----------- ---------
Total assets 6,447,288 3,524,659 1,877,247 36,067,699 1,912,321 430,827
----------- ----------- ----------- ------------ ----------- ---------
LIABILITIES
-----------
Operating payables 0 0 5,764 0 0 0
----------- ----------- ----------- ------------ ----------- ---------
Net assets available for benefits $6,447,288 $3,524,659 $1,871,483 $36,067,699 $1,912,321 $430,827
=========== =========== =========== ============ =========== =========
Participating Plan Interests
- ----------------------------
MCI Communications Retirement Savings Plan $5,746,106 $3,137,589 $1,680,310 $31,769,787 $1,700,841 $399,028
MCI Consumer Markets 401(k) Plan 701,182 387,070 191,173 4,297,912 211,480 31,799
----------- ----------- ----------- ------------ ----------- ---------
Total $6,447,288 $3,524,659 $1,871,483 $36,067,699 $1,912,321 $430,827
=========== =========== =========== ============ =========== =========
<FN>
* Investment represents 5% or more of the Trust's net assets.
</FN>
</TABLE>
Page 20
<PAGE>
<TABLE>
MCI COMMUNICATIONS CORPORATION
DEFINED CONTRIBUTION MASTER TRUST
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1994
<CAPTION>
Putnam Putnam Putnam Putnam Putnam Putnam
Vista Voyager Convertible High Yield Global Gov't OTC Emerging
Fund Fund Income-Growth Advantage Income Growth
ASSETS --------- ------------ ------------- ---------- ------------ ------------
------
<S> <C> <C> <C> <C> <C> <C>
Contributions receivable:
Employee $ 1,016 $ 33,483 $ 916 $ 460 $ 407 $ 3,470
Employer 0 0 0 0 0 0
--------- ------------ ------------- ---------- ------------ ------------
Total contributions receivable 1,016 33,483 916 460 407 3,470
Other receivables 16,940 53,553 3,967 0 492 7,382
Investments, at fair value:
Common stock 0 0 0 0 0 0
Common/collective trusts 0 1,588 0 0 0 0
Registered investment companies 970,118 62,645,356* 709,251 419,598 212,661 3,032,240
Participant loans 0 0 0 0 0 0
Investments, at contract value:
Value of guaranteed investment contracts 0 0 0 0 0 0
--------- ------------ ------------- ---------- ------------ ------------
Total assets 988,074 62,733,980 714,134 420,058 213,560 3,043,092
--------- ------------ ------------- ---------- ------------ ------------
LIABILITIES
-----------
Operating payables 0 0 0 3,944 0 0
--------- ------------ ------------- ---------- ------------ ------------
Net assets available for benefits $988,074 $62,733,980 $ 714,134 $ 416,114 $ 213,560 $ 3,043,092
========= ============ ============= ========== ============ ============
Participating Plan Interests
- ----------------------------
MCI Communications Retirement Savings Plan $905,290 $58,211,117 $ 665,896 $ 377,317 $ 195,954 $ 2,802,380
MCI Consumer Markets 401(k) Plan 82,784 4,522,863 48,238 38,797 17,606 240,712
--------- ------------ ------------- ---------- ------------ ------------
Total $988,074 $62,733,980 $ 714,134 $ 416,114 $ 213,560 $ 3,043,092
========= ============ ============= ========== ============ ============
<FN>
* Investment represents 5% or more of the Trust's net assets.
</FN>
</TABLE>
Page 21
<PAGE>
<TABLE>
MCI COMMUNICATIONS CORPORATION
DEFINED CONTRIBUTION MASTER TRUST
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1994
<CAPTION>
Putnam Stable Putnam MCI
Diversified Asset New Common Participant
Income Fund Opportunities Stock Loans Total
ASSETS ----------- ------------- ------------- ------------- ------------ -------------
------
<S> <C> <C> <C> <C> <C> <C>
Contributions receivable:
Employee $ 344 $ 50,801 $ 2,896 $ 58,178 $ 0 $ 197,554
Employer 0 0 0 117,255 0 117,255
----------- ------------- ------------- ------------- ------------ -------------
Total contributions receivable 344 50,801 2,896 175,433 0 314,809
Other receivables 3,936 1,893 0 7 0 134,026
Investments, at fair value:
Common stock 0 0 0 146,194,183* 0 146,194,183
Common/collective trusts 0 1,406,194 0 4,390 0 1,412,297
Registered investment companies 359,063 0 4,615,388 0 0 123,132,152
Participant loans 0 0 0 0 15,941,326 15,941,326
Investments, at contract value:
Value of guaranteed investment contracts 0 98,544,375* 0 0 0 98,544,375
----------- ------------- ------------- ------------- ------------ -------------
Total assets 363,343 100,003,263 4,618,284 146,374,013 15,941,326 385,673,168
----------- ------------- ------------- ------------- ------------ -------------
LIABILITIES
-----------
Operating payables 0 0 271 0 0 9,979
----------- ------------- ------------- ------------- ------------ -------------
Net assets available for benefits $ 363,343 $100,003,263 $ 4,618,013 $146,374,013 $15,941,326 $385,663,189
=========== ============= ============= ============= ============ =============
Participating Plan Interests
- ----------------------------
MCI Communications Retirement Savings Plan $ 315,561 $ 89,640,220 $ 4,239,947 $131,656,672 $14,116,827 $347,560,842
MCI Consumer Markets 401(k) Plan 47,782 10,363,043 378,066 14,717,341 1,824,499 38,102,347
----------- ------------- ------------- ------------- ------------ -------------
Total $ 363,343 $100,003,263 $ 4,618,013 $146,374,013 $15,941,326 $385,663,189
=========== ============= ============= ============= ============ =============
<FN>
* Investment represents 5% or more of the Trust's net assets.
</FN>
</TABLE>
Page 22
<PAGE>
<TABLE>
MCI COMMUNICATIONS CORPORATION
DEFINED CONTRIBUTION MASTER TRUST
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1995
<CAPTION>
EuroPacific Putnam Scudder Dreyfus Putnam Putnam Putnam
Growth Balanced Income S&P 500 Growth & Investors Vista
Fund Fund Fund Stock Index Income Fund Fund
ADDITIONS ------------ ------------ ----------- ------------ ----------- ---------- -----------
- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Contributions:
Participants $ 5,251,972 $ 1,248,922 $ 577,090 $ 8,827,241 $ 565,945 $ 123,673 $ 243,681
Non-cash employer 0 0 0 0 0 0 0
Rollovers 791,446 241,301 119,561 745,493 227,021 37,701 90,302
Transfers from ESOP 66,721 0 0 54,377 0 0 0
------------ ------------ ----------- ------------ ----------- ---------- -----------
Total contributions 6,110,139 1,490,223 696,651 9,627,111 792,966 161,374 333,983
------------ ------------ ----------- ------------ ----------- ---------- -----------
Earnings on investments:
Interest on participant loans 0 0 0 0 0 0 0
Interest on guaranteed investment contracts 0 0 0 0 0 0 0
Dividends on common stock 0 0 0 0 0 0 0
Net gain on disposition of assets 0 0 0 0 0 0 0
Unrealized appreciation of assets 0 0 0 0 0 0 0
Net gain from registered investment
companies 1,280,651 710,463 247,679 14,536,948 432,773 109,244 208,851
------------ ------------ ----------- ------------ ----------- ---------- -----------
Total earnings on investments 1,280,651 710,463 247,679 14,536,948 432,773 109,244 208,851
------------ ------------ ----------- ------------ ----------- ---------- -----------
Total additions 7,390,790 2,200,686 944,330 24,164,059 1,225,739 270,618 542,834
DEDUCTIONS
- ----------
Participant benefit payments 530,494 195,674 79,766 2,450,337 61,244 10,369 24,012
Fees 3,587 920 440 11,812 340 130 168
------------ ------------ ----------- ------------ ----------- ---------- -----------
Net increase 6,856,709 2,004,092 864,124 21,701,910 1,164,155 260,119 518,654
Transfers from (to):
Other master trust investment accounts 1,567,927 (5,496,998) (2,728,202) 1,451,525 (3,060,910) (678,260) (1,514,509)
Net loans (5,685) (31,753) (7,405) (710,327) (15,566) (12,686) 7,781
Western Union International Collectively
Bargained Plan 0 0 0 7,922 0 0 0
Net assets available for benefits, at
beginning of year 6,447,288 3,524,659 1,871,483 36,067,699 1,912,321 430,827 988,074
------------ ------------ ----------- ------------ ----------- ---------- -----------
Net assets available for benefits, at
end of year $14,866,239 $ 0 $ 0 $58,518,729 $ 0 $ 0 $ 0
============ ============ =========== ============ =========== ========== ===========
</TABLE>
Page 23
<PAGE>
<TABLE>
MCI COMMUNICATIONS CORPORATION
DEFINED CONTRIBUTION MASTER TRUST
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1995
<CAPTION>
Putnam Putnam Putnam Putnam Putnam Putnam
Voyager Convertible High Yield Global Gov't OTC Emerging Diversified
Fund Income-Growth Advantage Income Growth Income
ADDITIONS ------------- ------------- ---------- ------------ ------------ -----------
- ---------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Participants $ 16,872,907 $ 198,879 $ 130,518 $ 60,923 $ 1,036,061 $ 81,012
Non-cash employer 0 0 0 0 0 0
Rollovers 1,286,559 59,077 25,654 7,986 189,639 26,713
Transfers from ESOP 81,661 0 0 0 0 0
------------- ------------- ---------- ------------ ------------ -----------
Total contributions 18,241,127 257,956 156,172 68,909 1,225,700 107,725
------------- ------------- ---------- ------------ ------------ -----------
Earnings on investments:
Interest on participant loans 0 0 0 0 0 0
Interest on guaranteed investment contracts 0 0 0 0 0 0
Dividends on common stock 0 0 0 0 0 0
Net gain on disposition of assets 0 0 0 0 0 0
Unrealized appreciation of assets 0 0 0 0 0 0
Net gain from registered investment
companies 28,079,036 107,684 57,739 16,807 663,984 40,082
------------- ------------- ---------- ------------ ------------ -----------
Total earnings on investments 28,079,036 107,684 57,739 16,807 663,984 40,082
------------- ------------- ---------- ------------ ------------ -----------
Total additions 46,320,163 365,640 213,911 85,716 1,889,684 147,807
DEDUCTIONS
- ----------
Participant benefit payments 5,020,074 12,105 17,737 4,797 109,631 19,295
Fees 21,203 239 136 42 646 58
------------- ------------- ---------- ------------ ------------ -----------
Net increase 41,278,886 353,296 196,038 80,877 1,779,407 128,454
Transfers from (to):
Other master trust investment accounts 4,780,658 (1,045,665) (611,710) (296,290) (4,812,448) (485,856)
Net loans (1,268,072) (21,765) (442) 1,853 (10,051) (5,941)
Western Union International Collectively
Bargained Plan 31,562 0 0 0 0 0
Net assets available for benefits, at
beginning of year 62,733,980 714,134 416,114 213,560 3,043,092 363,343
------------- ------------- ---------- ------------ ------------ -----------
Net assets available for benefits, at
end of year $107,557,014 $ 0 $ 0 $ 0 $ 0 $ 0
============= ============= ========== ============ ============ ===========
</TABLE>
Page 24
<PAGE>
<TABLE>
MCI COMMUNICATIONS CORPORATION
DEFINED CONTRIBUTION MASTER TRUST
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1995
<CAPTION>
Stable Putnam Putnam MCI
Asset New Balanced Common Participant
Fund Opportunities Retirement Stock Loans Total
ADDITIONS ------------- ------------- ------------- ------------- ------------- -------------
- ---------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Participants $ 11,915,844 $ 5,436,882 $ 3,080,954 $ 15,451,668 $ 0 $ 71,104,172
Non-cash employer 0 0 0 38,743,079 0 38,743,079
Rollovers 1,214,460 1,006,870 396,986 752,466 0 7,219,235
Transfers from ESOP 334,063 55,454 53,836 75,926 0 722,038
------------- ------------- ------------- ------------- ------------- -------------
Total contributions 13,464,367 6,499,206 3,531,776 55,023,139 0 117,788,524
------------- ------------- ------------- ------------- ------------- -------------
Earnings on investments:
Interest on participant loans 0 0 0 0 1,668,598 1,668,598
Interest on guaranteed investment contracts 7,160,055 0 0 0 0 7,160,055
Dividends on common stock 0 0 0 456,852 0 456,852
Net gain on disposition of assets 0 0 0 2,798,630 0 2,798,630
Unrealized appreciation of assets 0 0 0 66,162,577 0 66,162,577
Net gain from registered investment
companies 0 5,545,511 1,701,843 0 0 53,739,295
------------- ------------- ------------- ------------- ------------- -------------
Total earnings on investments 7,160,055 5,545,511 1,701,843 69,418,059 1,668,598 131,986,007
------------- ------------- ------------- ------------- ------------- -------------
Total additions 20,624,422 12,044,717 5,233,619 124,441,198 1,668,598 249,774,531
DEDUCTIONS
- ----------
Participant benefit payments 8,079,761 722,038 558,121 14,459,032 1,480,795 33,835,282
Fees 28,684 3,424 2,619 34,554 0 109,002
------------- ------------- ------------- ------------- ------------- -------------
Net increase 12,515,977 11,319,255 4,672,879 109,947,612 187,803 215,830,247
Transfers from (to):
Other master trust investment accounts (5,022,366) 12,473,352 14,416,962 (8,937,210) 0 0
Net loans (1,493,070) 40,952 14,617 (791,294) 4,308,854 0
Western Union International Collectively
Bargained Plan 40,298 0 0 39,706 9,350 128,838
Net assets available for benefits, at
beginning of year 100,003,263 4,618,013 0 146,374,013 15,941,326 385,663,189
------------- ------------- ------------- ------------- ------------- -------------
Net assets available for benefits, at
end of year $106,044,102 $ 28,451,572 $ 19,104,458 $246,632,827 $ 20,447,333 $601,622,274
============= ============= ============= ============= ============= =============
</TABLE>
Page 25
<PAGE>
<TABLE>
MCI COMMUNICATIONS CORPORATION
DEFINED CONTRIBUTION MASTER TRUST
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1994
EuroPacific Putnam Scudder Dreyfus Putnam Putnam
Growth Balanced Income S&P 500 Growth & Investors
Fund Fund Fund Stock Index Income Fund
ADDITIONS ----------- ----------- ----------- ------------ ----------- ---------
- ---------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Participants $2,783,794 $1,612,533 $ 790,928 $ 8,365,101 $ 675,924 $157,084
Non-cash employer 0 0 0 0 0 0
Rollovers 1,024,708 1,186,247 768,095 662,500 807,794 164,611
Non-cash supplemental 0 0 0 0 0 0
Transfers from ESOP 12,329 11,688 4,728 10,332 9,873 2,130
----------- ----------- ----------- ------------ ----------- ---------
Total contributions 3,820,831 2,810,468 1,563,751 9,037,933 1,493,591 323,825
----------- ----------- ----------- ------------ ----------- ---------
Earnings on investments:
Interest on participant loans 0 0 0 0 0 0
Interest on guaranteed investment contracts 0 0 0 0 0 0
Dividends on common stock 0 0 0 0 0 0
Net (loss) on disposition of assets 0 0 0 0 0 0
Unrealized (depreciation) of assets 0 0 0 0 0 0
Net (loss) gain from registered investment
companies (40,315) 5,979 9,607 457,771 15,906 1,297
----------- ----------- ----------- ------------ ----------- ---------
Total (losses) earnings on investments (40,315) 5,979 9,607 457,771 15,906 1,297
----------- ----------- ----------- ------------ ----------- ---------
Total additions 3,780,516 2,816,447 1,573,358 9,495,704 1,509,497 325,122
DEDUCTIONS
- ----------
Participant benefit payments 78,712 20,896 18,709 1,051,210 13,612 2,227
----------- ----------- ----------- ------------ ----------- ---------
Net increase 3,701,804 2,795,551 1,554,649 8,444,494 1,495,885 322,895
Transfers from (to):
Other master trust investment accounts 2,788,105 813,772 362,821 (3,044,215) 470,858 115,520
Net loans (42,621) (84,664) (45,987) (1,114,907) (54,422) (7,588)
Western Union International Collectively
Bargained Plan 0 0 0 11,486 0 0
Net assets available for benefits, at
beginning of year 0 0 0 31,770,841 0 0
----------- ----------- ----------- ------------ ----------- ---------
Net assets available for benefits, at
end of year $6,447,288 $3,524,659 $1,871,483 $36,067,699 $1,912,321 $430,827
=========== =========== =========== ============ =========== =========
</TABLE>
Page 26
<PAGE>
<TABLE>
MCI COMMUNICATIONS CORPORATION
DEFINED CONTRIBUTION MASTER TRUST
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1994
<CAPTION>
Putnam Putnam Putnam Putnam Putnam Putnam
Vista Voyager Convertible High Yield Global Gov't OTC Emerging
Fund Fund Income-Growth Advantage Income Growth
ADDITIONS --------- ------------ ------------- ---------- ------------ ------------
- ---------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Participants $340,241 $15,026,938 $ 276,157 $ 168,550 $ 88,997 $ 1,288,038
Non-cash employer 0 0 0 0 0 0
Rollovers 437,051 1,549,601 317,076 205,946 74,972 642,623
Non-cash supplemental 0 0 0 0 0 0
Transfers from ESOP 8,388 10,763 1,250 4,509 9,392 5,501
--------- ------------ ------------- ---------- ------------ ------------
Total contributions 785,680 16,587,302 594,483 379,005 173,361 1,936,162
--------- ------------ ------------- ---------- ------------ ------------
Earnings on investments:
Interest on participant loans 0 0 0 0 0 0
Interest on guaranteed investment contracts 0 0 0 0 0 0
Dividends on common stock 0 0 0 0 0 0
Net (loss) on disposition of assets 0 0 0 0 0 0
Unrealized (depreciation) of assets 0 0 0 0 0 0
Net (loss) gain from registered investment
companies 3,250 590,284 (2,103) (10,943) (5,915) 242,285
--------- ------------ ------------- ---------- ------------ ------------
Total (losses) earnings on investments 3,250 590,284 (2,103) (10,943) (5,915) 242,285
--------- ------------ ------------- ---------- ------------ ------------
Total additions 788,930 17,177,586 592,380 368,062 167,446 2,178,447
DEDUCTIONS
- ----------
Participant benefit payments 7,118 1,885,218 3,112 3,332 264 20,806
--------- ------------ ------------- ---------- ------------ ------------
Net increase 781,812 15,292,368 589,268 364,730 167,182 2,157,641
Transfers from (to):
Other master trust investment accounts 237,960 (2,989,223) 137,008 71,319 50,580 914,427
Net loans (31,698) (1,955,198) (12,142) (19,935) (4,202) (28,976)
Western Union International Collectively
Bargained Plan 0 9,774 0 0 0 0
Net assets available for benefits, at
beginning of year 0 52,376,259 0 0 0 0
--------- ------------ ------------- ---------- ------------ ------------
Net assets available for benefits, at
end of year $988,074 $62,733,980 $ 714,134 $ 416,114 $ 213,560 $ 3,043,092
========= ============ ============= ========== ============ ============
</TABLE>
Page 27
<PAGE>
<TABLE>
MCI COMMUNICATIONS CORPORATION
DEFINED CONTRIBUTION MASTER TRUST
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1994
<CAPTION>
Putnam Stable Putnam MCI
Diversified Asset New Common Participant
Income Fund Opportunities Stock Loans Total
ADDITIONS ----------- ------------- ------------- ------------- ------------ -------------
- ---------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Participants $ 109,922 $ 12,963,883 $ 1,669,859 $ 15,866,347 $ 0 $ 62,184,296
Non-cash employer 0 0 0 34,411,079 0 34,411,079
Rollovers 445,952 2,679,107 1,181,940 1,237,619 0 13,385,842
Non-cash supplemental 0 0 0 20,000,002 0 20,000,002
Transfers from ESOP 2,252 11,732 6,156 52,082 0 163,105
----------- ------------- ------------- ------------- ------------ -------------
Total contributions 558,126 15,654,722 2,857,955 71,567,129 0 130,144,324
----------- ------------- ------------- ------------- ------------ -------------
Earnings on investments:
Interest on participant loans 0 0 0 0 761,327 761,327
Interest on guaranteed investment contracts 0 6,131,620 0 0 0 6,131,620
Dividends on common stock 0 0 0 339,260 0 339,260
Net (loss) on disposition of assets 0 0 0 (1,417,410) 0 (1,417,410)
Unrealized (depreciation) of assets 0 0 0 (63,481,865) 0 (63,481,865)
Net (loss) gain from registered investment
companies (6,865) 0 315,778 0 0 1,576,016
----------- ------------- ------------- ------------- ------------ -------------
Total (losses) earnings on investments (6,865) 6,131,620 315,778 (64,560,015) 761,327 (56,091,052)
----------- ------------- ------------- ------------- ------------ -------------
Total additions 551,261 21,786,342 3,173,733 7,007,114 761,327 74,053,272
DEDUCTIONS
- ----------
Participant benefit payments 2,643 4,605,500 32,954 6,509,482 723,204 14,978,999
----------- ------------- ------------- ------------- ------------ -------------
Net increase 548,618 17,180,842 3,140,779 497,632 38,123 59,074,273
Transfers from (to):
Other master trust investment accounts (169,241) (4,322,644) 1,573,958 2,988,995 0 0
Net loans (16,034) (3,204,872) (96,724) (2,069,439) 8,791,674 2,265
Western Union International Collectively
Bargained Plan 0 44,413 0 42,169 3,279 111,121
Net assets available for benefits, at
beginning of year 0 90,305,524 0 144,914,656 7,108,250 326,475,530
----------- ------------- ------------- ------------- ------------ -------------
Net assets available for benefits, at
end of year $ 363,343 $100,003,263 $ 4,618,013 $146,374,013 $15,941,326 $385,663,189
=========== ============= ============= ============= ============ =============
</TABLE>
Page 28
<PAGE>
<TABLE>
MCI COMMUNICATIONS CORPORATION
RETIREMENT SAVINGS PLAN
EIN: 52-0886267
SCHEDULE OF MASTER TRUST PARTICIPATION
<CAPTION>
Current Value of Interest Year Ended December 31, 1995
----------------------------- ---------------------------------------------------------------
Participant
December 31, December 31, Benefit Net
Investment Account Interest: 1995 1994 Contributions Payments Net Loans Net Transfers Appreciation
-------------- -------------- ------------- -------------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
EuroPacific Growth Fund $ 12,985,468 $ 5,746,106 $ 5,184,204 $ (456,123) $ (2,097) $ 1,383,520 $ 1,129,858
Putnam Balanced Fund 0 3,137,589 1,258,108 (183,182) (31,170) (4,808,381) 627,036
Scudder Income Fund 0 1,680,310 594,398 (68,206) (7,580) (2,422,097) 223,175
Dreyfus S&P 500 Stock Index 51,748,402 31,769,787 8,121,917 (2,083,269) (550,185) 1,646,311 12,843,841
Putnam Growth & Income 0 1,700,841 615,095 (49,339) (16,903) (2,633,595) 383,901
Putnam Investors Fund 0 399,028 119,178 (9,546) (9,081) (599,449) 99,870
Putnam Vista Fund 0 905,290 289,724 (19,765) 14,264 (1,375,315) 185,802
Putnam Voyager Fund 99,167,158 58,211,117 15,560,977 (4,481,559) (1,107,613) 4,983,596 26,000,640
Putnam Convertible Income-Growth 0 665,896 212,832 (11,133) (15,069) (949,651) 97,125
Putnam High Yield Advantage 0 377,317 136,696 (16,116) (554) (550,192) 52,849
Putnam Global Gov't Income 0 195,954 57,125 (4,607) 1,639 (265,182) 15,071
Putnam OTC Emerging Growth 0 2,802,380 1,049,636 (99,708) 7,856 (4,364,665) 604,501
Putnam Diversified Income 0 315,561 91,661 (18,198) (7,565) (415,912) 34,453
Stable Asset Fund 95,991,937 89,640,220 11,230,911 (6,430,142) (1,179,222) (3,713,655) 6,443,825
Putnam New Opportunities 25,147,778 4,239,947 5,364,537 (647,168) 58,223 11,180,495 4,951,744
Putnam Balanced Retirement 16,800,069 0 2,909,640 (482,792) 37,843 12,834,319 1,501,059
MCI Common Stock 218,017,594 131,656,672 45,809,276 (11,423,457) (606,989) (7,420,973) 60,003,065
Participant Loans
(interest rates range 7% - 11%) 17,969,075 14,116,827 0 (1,153,900) 3,414,203 83,522 1,508,423
------------ -------------- ------------- --------------- ----------- ------------- -------------
Total $ 537,827,481 $ 347,560,842 $ 98,605,915 $(27,638,210) $ 0 $ 2,592,696 $ 116,706,238
============== ============== ============= =============== =========== ============= =============
</TABLE>
Page 29
<PAGE>
NOTE 4 - NET ASSETS AVAILABLE FOR BENEFITS AND CHANGES IN NET ASSETS AVAILABLE
FOR BENEFITS BY FUND
The allocation of net assets available for benefits and the changes in net
assets among the Plan's investment funds for the years ended December 31, 1995
and 1994 are presented on the following pages.
Page 30
<PAGE>
<TABLE>
MCI COMMUNICATIONS CORPORATION
RETIREMENT SAVINGS PLAN
EIN: 52-0886267
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1995
<CAPTION>
EuroPacific Dreyfus Putnam Stable
Growth S&P 500 Voyager Asset
Fund Stock Index Fund Fund
------------- ------------- ------------- -------------
ASSETS
------
<S> <C> <C> <C> <C>
Non-interest bearing cash $ 1,443 $ 64,077 $ 81,983 $ 130,872
Other receivables 225,584 295,590 66,146 1,338
Investments, at fair value:
Common stock 0 0 0 0
Common/collective trusts 12 11,046 1,571 1,434,180
Registered investment companies 12,984,013 51,637,924* 99,032,315* 0
Participant loans 0 0 0 0
Investments, at contract value:
Value of guaranteed investment contracts 0 0 0 94,448,258*
------------- ------------- ------------- -------------
Total assets 13,211,052 52,008,637 99,182,015 96,014,648
------------- ------------- ------------- -------------
LIABILITIES
-----------
Operating payables 225,584 260,235 14,857 22,711
------------- ------------- ------------- -------------
Net assets available for benefits $ 12,985,468 $ 51,748,402 $ 99,167,158 $ 95,991,937
============= ============= ============= =============
<FN>
* Investment represents 5% or more of the Trust's net assets.
</FN>
</TABLE>
Page 31
<PAGE>
<TABLE>
MCI COMMUNICATIONS CORPORATION
RETIREMENT SAVINGS PLAN
EIN: 52-0886267
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1995
Putnam Putnam MCI
New Balanced Common Participant
Opportunities Retirement Stock Loans Total
------------- ------------- ------------- ------------- -------------
ASSETS
------
<S> <C> <C> <C> <C> <C>
Non-interest bearing cash $ 0 $ 0 $ 0 $ 0 $ 278,375
Other receivables 21,387 161,058 51 0 771,154
Investments, at fair value:
Common stock 0 0 217,997,790* 0 217,997,790
Common/collective trusts 1,233 1,067 19,753 0 1,468,862
Registered investment companies 25,125,158 16,808,405 0 0 205,587,815
Participant loans 0 0 0 17,969,075 17,969,075
Investments, at contract value:
Value of guaranteed investment contracts 0 0 0 0 94,448,258
------------- ------------- ------------- ------------- -------------
Total assets 25,147,778 16,970,530 218,017,594 17,969,075 538,521,329
------------- ------------- ------------- ------------- -------------
LIABILITIES
-----------
Operating payables 0 170,461 0 0 693,848
------------- ------------- ------------- ------------- -------------
Net assets available for benefits $ 25,147,778 $ 16,800,069 $218,017,594 $ 17,969,075 $537,827,481
============= ============= ============= ============= =============
<FN>
* Investment represents 5% or more of the Trust's net assets.
</FN>
</TABLE>
Page 32
<PAGE>
<TABLE>
MCI COMMUNICATIONS CORPORATION
RETIREMENT SAVINGS PLAN
EIN: 52-0886267
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1994
<CAPTION>
EuroPacific Putnam Scudder Dreyfus Putnam Putnam
Growth Balanced Income S&P 500 Growth & Investors
Fund Fund Fund Stock Index Income Fund
----------- ----------- ----------- ------------ ----------- ---------
ASSETS
------
<S> <C> <C> <C> <C> <C> <C>
Other receivables $ 5,223 $ 4,926 $ 0 $ 20,569 $ 329 $ 182
Investments, at fair value:
Common stock 0 0 0 0 0 0
Common/collective trusts 0 0 0 110 0 0
Registered investment companies 5,740,883 3,132,663 1,686,122 31,749,108* 1,700,512 398,846
Participant loans 0 0 0 0 0 0
Investments, at contract value:
Value of guaranteed investment contracts 0 0 0 0 0 0
----------- ----------- ----------- ------------ ----------- ---------
Total assets 5,746,106 3,137,589 1,686,122 31,769,787 1,700,841 399,028
----------- ----------- ----------- ------------ ----------- ---------
LIABILITIES
-----------
Operating payables 0 0 5,812 0 0 0
----------- ----------- ----------- ------------ ----------- ---------
Net assets available for benefits $5,746,106 $3,137,589 $1,680,310 $31,769,787 $1,700,841 $399,028
=========== =========== =========== ============ =========== =========
<FN>
* Investment represents 5% or more of the Trust's net assets.
</FN>
</TABLE>
Page 33
<PAGE>
<TABLE>
MCI COMMUNICATIONS CORPORATION
RETIREMENT SAVINGS PLAN
EIN: 52-088627
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1994
<CAPTION>
Putnam Putnam Putnam Putnam Putnam Putnam
Vista Voyager Convertible High Yield Global Gov't OTC Emerging
Fund Fund Income-Growth Advantage Income Growth
--------- ------------ ------------- ---------- ------------ ------------
ASSETS
------
<S> <C> <C> <C> <C> <C> <C>
Other receivables $ 16,940 $ 43,565 $ 3,884 $ 0 $ 492 $ 7,298
Investments, at fair value:
Common stock 0 0 0 0 0 0
Common/collective trusts 0 1,474 0 0 0 0
Registered investment companies 888,350 58,166,078* 662,012 381,318 195,462 2,795,082
Participant loans 0 0 0 0 0 0
Investments, at contract value:
Value of guaranteed investment contracts 0 0 0 0 0 0
--------- ------------ ------------- ---------- ------------ ------------
Total assets 905,290 58,211,117 665,896 381,318 195,954 2,802,380
--------- ------------ ------------- ---------- ------------ ------------
LIABILITIES
-----------
Operating payables 0 0 0 4,001 0 0
--------- ------------ ------------- ---------- ------------ ------------
Net assets available for benefits $905,290 $58,211,117 $ 665,896 $ 377,317 $ 195,954 $ 2,802,380
========= ============ ============= ========== ============ ============
<FN>
* Investment represents 5% or more of the Trust's net assets.
</FN>
</TABLE>
Page 34
<PAGE>
<TABLE>
MCI COMMUNICATIONS CORPORATION
RETIREMENT SAVINGS PLAN
EIN: 52-0886267
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1994
Putnam Stable Putnam MCI
Diversified Asset New Common Participant
Income Fund Opportunities Stock Loans Total
----------- ------------- ------------- ------------- ------------ -------------
ASSETS
------
<S> <C> <C> <C> <C> <C> <C>
Other receivables $ 3,936 $ 1,697 $ 3,948 $ 6 $ 0 $ 112,995
Investments, at fair value:
Common stock 0 0 0 131,652,717* 0 131,652,717
Common/collective trusts 0 1,260,512 0 3,949 0 1,266,045
Registered investment companies 311,625 0 4,235,999 0 0 112,044,060
Participant loans 0 0 0 0 14,116,827 14,116,827
Investments, at contract value:
Value of guaranteed investment contracts 0 88,378,011* 0 0 0 88,378,011
----------- ------------- ------------- ------------- ------------ -------------
Total assets 315,561 89,640,220 4,239,947 131,656,672 14,116,827 347,570,655
----------- ------------- ------------- ------------- ------------ -------------
LIABILITIES
-----------
Operating payables 0 0 0 0 0 9,813
----------- ------------- ------------- ------------- ------------ -------------
Net assets available for benefits $ 315,561 $ 89,640,220 $ 4,239,947 $131,656,672 $14,116,827 $347,560,842
=========== ============= ============= ============= ============ =============
<FN>
* Investment represents 5% or more of the Trust's net assets.
</FN>
</TABLE>
Page 35
<PAGE>
<TABLE>
MCI COMMUNICATIONS CORPORATION
RETIREMENT SAVINGS PLAN
EIN: 52-0886267
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1995
<CAPTION>
EuroPacific Putnam Scudder Dreyfus Putnam Putnam Putnam
Growth Balanced Income S&P 500 Growth & Investors Vista
Fund Fund Fund Stock Index Income Fund Fund
ADDITIONS ------------- ----------- ----------- ------------- ----------- --------- -----------
- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Contributions:
Participants $ 4,390,561 $1,036,121 $ 483,658 $ 7,433,945 $ 445,674 $102,315 $ 211,700
Non-cash employer 0 0 0 0 0 0 0
Rollovers 726,922 221,987 110,740 633,595 169,421 16,863 78,024
Transfers from ESOP 66,721 0 0 54,377 0 0 0
------------- ----------- ----------- ------------- ----------- --------- -----------
Total contributions 5,184,204 1,258,108 594,398 8,121,917 615,095 119,178 289,724
------------- ----------- ----------- ------------- ----------- --------- -----------
Earnings on investments:
Interest on participant loans 0 0 0 0 0 0 0
Interest on guaranteed investment contract 0 0 0 0 0 0 0
Dividends on common stock 0 0 0 0 0 0 0
Net gain on disposition of assets 0 0 0 0 0 0 0
Unrealized appreciation of assets 0 0 0 0 0 0 0
Net gain from registered investment
companies 1,129,858 627,036 223,175 12,843,841 383,901 99,870 185,802
------------- ----------- ----------- ------------- ----------- --------- -----------
Total earnings on investments 1,129,858 627,036 223,175 12,843,841 383,901 99,870 185,802
------------- ----------- ----------- ------------- ----------- --------- -----------
Total additions 6,314,062 1,885,144 817,573 20,965,758 998,996 219,048 475,526
DEDUCTIONS
- ----------
Participant benefit payments 453,332 182,456 67,840 2,074,793 49,062 9,451 19,622
Fees 2,791 726 366 8,476 277 95 143
------------- ----------- ----------- ------------- ----------- --------- -----------
Net increase 5,857,939 1,701,962 749,367 18,882,489 949,657 209,502 455,761
Transfers from (to):
Other master trust investment accounts 1,299,583 (4,828,727) (2,422,280) 1,273,832 (2,638,716) (598,543) (1,330,877)
Net loans (2,097) (31,170) (7,580) (550,185) (16,903) (9,081) 14,264
MCI Consumer Markets 401(k) Plan 83,937 20,346 183 364,557 5,121 (906) (44,438)
Western Union International Collectively
Bargained Plan 0 0 0 7,922 0 0 0
Net assets available for benefits, at
beginning of year 5,746,106 3,137,589 1,680,310 31,769,787 1,700,841 399,028 905,290
------------- ----------- ----------- ------------- ----------- --------- -----------
Net assets available for benefits, at
end of year $ 12,985,468 $ 0 $ 0 $ 51,748,402 $ 0 $ 0 $ 0
============= =========== =========== ============= =========== ========= ===========
</TABLE>
Page 36
<PAGE>
<TABLE>
MCI COMMUNICATIONS CORPORATION
RETIREMENT SAVINGS PLAN
EIN: 52-0886267
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1995
<CAPTION>
Putnam Putnam Putnam Putnam Putnam Putnam
Voyager Convertible High Yield Global Gov't OTC Emerging Diversified
Fund Income-Growth Advantage Income Growth Income
ADDITIONS ------------- ------------- ---------- ------------ ------------ -----------
- ---------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Participants $ 14,346,390 $ 166,684 $ 111,042 $ 49,139 $ 894,852 $ 64,948
Non-cash employer 0 0 0 0 0 0
Rollovers 1,132,926 46,148 25,654 7,986 154,784 26,713
Transfers from ESOP 81,661 0 0 0 0 0
------------- ------------- ---------- ------------ ------------ -----------
Total contributions 15,560,977 212,832 136,696 57,125 1,049,636 91,661
------------- ------------- ---------- ------------ ------------ -----------
Earnings on investments:
Interest on participant loans 0 0 0 0 0 0
Interest on guaranteed investment contracts 0 0 0 0 0 0
Dividends on common stock 0 0 0 0 0 0
Net gain on disposition of assets 0 0 0 0 0 0
Unrealized appreciation of assets 0 0 0 0 0 0
Net gain from registered investment
companies 26,000,640 97,125 52,849 15,071 604,501 34,453
------------ ------------- ---------- ------------ ------------ -----------
Total earnings on investments 26,000,640 97,125 52,849 15,071 604,501 34,453
------------ ------------- ---------- ------------ ------------ -----------
Total additions 41,561,617 309,957 189,545 72,196 1,654,137 126,114
DEDUCTIONS
- ----------
Participant benefit payments 4,465,024 10,919 16,008 4,572 99,188 18,151
Fees 16,535 214 108 35 520 47
------------ ------------- ---------- ------------ ------------ -----------
Net increase 37,080,058 298,824 173,429 67,589 1,554,429 107,916
Transfers from (to):
Other master trust investment accounts 4,523,355 (950,771) (549,601) (265,628) (4,353,550) (416,410)
Net loans (1,107,613) (15,069) (554) 1,639 7,856 (7,565)
MCI Consumer Markets 401(k) Plan 428,679 1,120 (591) 446 (11,115) 498
Western Union International Collectively
Bargained Plan 31,562 0 0 0 0 0
Net assets available for benefits, at
beginning of year 58,211,117 665,896 377,317 195,954 2,802,380 315,561
------------- ------------- ---------- ------------ ------------ -----------
Net assets available for benefits, at
end of year $ 99,167,158 $ 0 $ 0 $ 0 $ 0 $ 0
============= ============= ========== ============ ============ ===========
</TABLE>
Page 37
<PAGE>
<TABLE>
MCI COMMUNICATIONS CORPORATION
RETIREMENT SAVINGS PLAN
EIN: 52-0886267
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1995
<CAPTION>
Stable Putnam Putnam MCI
Asset New Balanced Common Participant
Fund Opportunities Retirement Stock Loans Total
ADDITIONS ------------- ------------- ------------- ------------- ------------- -------------
- ---------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Participants $ 9,767,877 $ 4,464,435 $ 2,491,906 $ 12,860,837 $ 0 $ 59,322,084
Non-cash employer 0 0 0 32,177,951 0 32,177,951
Rollovers 1,128,971 844,648 363,898 694,562 0 6,383,842
Transfers from ESOP 334,063 55,454 53,836 75,926 0 722,038
------------- ------------- ------------- ------------- ------------- -------------
Total contributions 11,230,911 5,364,537 2,909,640 45,809,276 0 98,605,915
------------- ------------- ------------- ------------- ------------- -------------
Earnings on investments:
Interest on participant loans 0 0 0 0 1,508,423 1,508,423
Interest on guaranteed investment contracts 6,443,825 0 0 0 0 6,443,825
Dividends on common stock 0 0 0 399,550 0 399,550
Net gain on disposition of assets 0 0 0 2,224,386 0 2,224,386
Unrealized appreciation of assets 0 0 0 57,379,129 0 57,379,129
Net gain from registered investment
companies 0 4,951,744 1,501,059 0 0 48,750,925
------------- ------------- ------------- ------------- ------------- -------------
Total earnings on investments 6,443,825 4,951,744 1,501,059 60,003,065 1,508,423 116,706,238
------------- ------------- ------------- ------------- ------------- -------------
Total additions 17,674,736 10,316,281 4,410,699 105,812,341 1,508,423 215,312,153
DEDUCTIONS
- ----------
Participant benefit payments 6,409,570 644,545 480,864 11,398,405 1,153,900 27,557,702
Fees 20,572 2,623 1,928 25,052 0 80,508
------------- ------------- ------------- ------------- ------------- -------------
Net increase 11,244,594 9,669,113 3,927,907 94,388,884 354,523 187,673,943
Transfers from (to):
Other master trust investment accounts (4,161,296) 11,111,612 12,790,110 (8,482,093) 0 0
Net loans (1,179,222) 58,223 37,843 (606,989) 3,414,203 0
MCI Consumer Markets 401(k) Plan 407,343 68,883 44,209 1,021,414 74,172 2,463,858
Western Union International Collectively
Bargained Plan 40,298 0 0 39,706 9,350 128,838
Net assets available for benefits, at
beginning of year 89,640,220 4,239,947 0 131,656,672 14,116,827 347,560,842
------------- ------------- ------------- ------------- ------------- -------------
Net assets available for benefits, at
end of year $ 95,991,937 $ 25,147,778 $ 16,800,069 $218,017,594 $ 17,969,075 $537,827,481
============= ============= ============= ============= ============= =============
</TABLE>
Page 38
<PAGE>
<TABLE>
MCI COMMUNICATIONS CORPORATION
RETIREMENT SAVINGS PLAN
EIN: 52-0886267
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1994
<CAPTION>
EuroPacific Putnam Scudder Dreyfus Putnam Putnam
Growth Balanced Income S&P 500 Growth & Investors
Fund Fund Fund Stock Index Income Fund
ADDITIONS ----------- ----------- ----------- ------------ ----------- ---------
- ---------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Participants $2,388,772 $1,372,996 $ 675,009 $ 7,024,132 $ 579,611 $136,797
Non-cash employer 0 0 0 0 0 0
Rollovers 982,898 1,121,362 694,580 639,523 765,155 163,868
Non-cash supplemental 0 0 0 0 0 0
Transfers from ESOP 12,329 11,688 4,728 10,332 9,873 2,130
----------- ----------- ----------- ------------ ----------- ---------
Total contributions 3,383,999 2,506,046 1,374,317 7,673,987 1,354,639 302,795
----------- ----------- ----------- ------------ ----------- ---------
Earnings on investments:
Interest on participant loans 0 0 0 0 0 0
Interest on guaranteed investment contracts 0 0 0 0 0 0
Dividends on common stock 0 0 0 0 0 0
Net (loss) on disposition of assets 0 0 0 0 0 0
Unrealized (depreciation) of assets 0 0 0 0 0 0
Net (loss) gain from registered investment
companies (34,104) 5,536 2,409 353,569 16,110 1,181
----------- ----------- ----------- ------------ ----------- ---------
Total (losses) earnings on investments (34,104) 5,536 2,409 353,569 16,110 1,181
----------- ----------- ----------- ------------ ----------- ---------
Total additions 3,349,895 2,511,582 1,376,726 8,027,556 1,370,749 303,976
DEDUCTIONS
- ----------
Participant benefit payments 66,956 17,886 16,770 906,168 11,911 2,148
----------- ----------- ----------- ------------ ----------- ---------
Net increase 3,282,939 2,493,696 1,359,956 7,121,388 1,358,838 301,828
Transfers from (to):
Other master trust investment accounts 2,513,525 745,505 354,770 (2,788,011) 390,183 104,664
Net loans (43,993) (75,810) (32,796) (964,504) (38,577) (7,329)
MCI Consumer Markets 401(k) Plan (6,365) (25,802) (1,620) (495,018) (9,603) (135)
Western Union International Collectively
Bargained Plan 0 0 0 11,486 0 0
Net assets available for benefits, at beginning
of year 0 0 0 28,884,446 0 0
----------- ----------- ----------- ------------ ----------- ---------
Net assets available for benefits, at end of
year $5,746,106 $3,137,589 $1,680,310 $31,769,787 $1,700,841 $399,028
=========== =========== =========== ============ =========== =========
</TABLE>
Page 39
<PAGE>
<TABLE>
MCI COMMUNICATIONS CORPORATION
RETIREMENT SAVINGS PLAN
EIN: 52-0886267
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1994
Putnam Putnam Putnam Putnam Putnam Putnam
Vista Voyager Convertible High Yield Global Gov't OTC Emerging
Fund Fund Income-Growth Advantage Income Growth
ADDITIONS --------- ------------ ------------- ---------- ------------ ------------
- ---------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Participants $304,668 $12,917,402 $ 241,138 $ 145,403 $ 74,926 $ 1,135,202
Non-cash employer 0 0 0 0 0 0
Rollovers 427,002 1,492,098 308,793 194,431 74,351 625,197
Non-cash supplemental 0 0 0 0 0 0
Transfers from ESOP 8,388 10,763 1,250 4,509 9,392 5,501
--------- ------------ ------------- ---------- ------------ ------------
Total contributions 740,058 14,420,263 551,181 344,343 158,669 1,765,900
--------- ------------ ------------- ---------- ------------ ------------
Earnings on investments:
Interest on participant loans 0 0 0 0 0 0
Interest on guaranteed investment contracts 0 0 0 0 0 0
Dividends on common stock 0 0 0 0 0 0
Net (loss) on disposition of assets 0 0 0 0 0 0
Unrealized (depreciation) of assets 0 0 0 0 0 0
Net (loss) gain from registered investment
companies 3,188 431,420 (1,658) (9,822) (5,503) 222,059
--------- ------------ ------------- ---------- ------------ ------------
Total (losses) earnings on investments 3,188 431,420 (1,658) (9,822) (5,503) 222,059
--------- ------------ ------------- ---------- ------------ ------------
Total additions 743,246 14,851,683 549,523 334,521 153,166 1,987,959
DEDUCTIONS
- ----------
Participant benefit payments 7,014 1,714,809 2,989 2,677 238 20,218
--------- ------------ ------------- ---------- ------------ ------------
Net increase 736,232 13,136,874 546,534 331,844 152,928 1,967,741
Transfers from (to):
Other master trust investment accounts 208,464 (2,902,048) 133,034 64,341 47,554 871,881
Net loans (28,780) (1,753,361) (11,806) (15,641) (4,602) (25,941)
MCI Consumer Markets 401(k) Plan (10,626) 736,151 (1,866) (3,227) 74 (11,301)
Western Union International Collectively
Bargained Plan 0 9,774 0 0 0 0
Net assets available for benefits, at beginning
of year 0 48,983,727 0 0 0 0
--------- ------------ ------------- ---------- ------------ ------------
Net assets available for benefits, at end of
year $905,290 $58,211,117 $ 665,896 $ 377,317 $ 195,954 $ 2,802,380
========= ============ ============= ========== ============ ============
</TABLE>
Page 40
<PAGE>
<TABLE>
MCI COMMUNICATIONS CORPORATION
RETIREMENT SAVINGS PLAN
EIN: 52-0886267
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1994
<CAPTION>
Putnam Stable Putnam MCI
Diversified Asset New Common Participant
Income Fund Opportunities Stock Loans Total
ADDITIONS ----------- ------------- ------------- ------------- ------------ -------------
- ---------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Participants $ 94,224 $ 10,430,454 $ 1,458,693 $ 12,928,123 $ 0 $ 51,907,550
Non-cash employer 0 0 0 28,532,919 0 28,532,919
Rollovers 424,017 2,470,599 1,148,825 1,191,123 0 12,723,822
Non-cash supplemental 0 0 0 16,658,582 0 16,658,582
Transfers from ESOP 2,252 11,732 6,156 52,082 0 163,105
----------- ------------- ------------- ------------- ------------ -------------
Total contributions 520,493 12,912,785 2,613,674 59,362,829 0 109,985,978
----------- ------------- ------------- ------------- ------------ -------------
Earnings on investments:
Interest on participant loans 0 0 0 0 681,957 681,957
Interest on guaranteed investment contracts 0 5,592,442 0 0 0 5,592,442
Dividends on common stock 0 0 0 303,588 0 303,588
Net (loss) on disposition of assets 0 0 0 (1,245,716) 0 (1,245,716)
Unrealized (depreciation) of assets 0 0 0 (57,412,969) 0 (57,412,969)
Net (loss) gain from registered investment
companies (4,796) 0 295,753 0 0 1,275,342
----------- ------------- ------------- ------------- ------------ -------------
Total (losses) earnings on investments (4,796) 5,592,442 295,753 (58,355,097) 681,957 (50,805,356)
----------- ------------- ------------- ------------- ------------ -------------
Total additions 515,697 18,505,227 2,909,427 1,007,732 681,957 59,180,622
DEDUCTIONS
- ----------
Participant benefit payments 2,618 3,956,517 31,588 5,683,122 663,239 13,106,868
----------- ------------- ------------- ------------- ------------ -------------
Net increase 513,079 14,548,710 2,877,839 (4,675,390) 18,718 46,073,754
Transfers from (to):
Other master trust investment accounts (189,659) (3,837,644) 1,472,958 2,810,483 0 0
Net loans (7,374) (2,622,467) (94,411) (1,885,783) 7,600,138 (13,037)
MCI Consumer Markets 401(k) Plan (485) 1,104,535 (16,439) 1,826,228 (115,875) 2,968,626
Western Union International Collectively
Bargained Plan 0 44,413 0 42,169 3,279 111,121
Net assets available for benefits, at beginning
of year 0 80,402,673 0 133,538,965 6,610,567 298,420,378
----------- ------------- ------------- ------------- ------------ -------------
Net assets available for benefits, at end of
year $ 315,561 $ 89,640,220 $ 4,239,947 $131,656,672 $14,116,827 $347,560,842
=========== ============= ============= ============= ============ =============
</TABLE>
Page 41
<PAGE>
NOTE 5 - PARTICIPANTS' ACCOUNTS
As of December 31, 1995 and 1994, the Plan held 8,343,760 and 7,163,019 shares,
respectively, of MCI Communications Corporation Common Stock at fair market
values of $217,980,730 and $131,620,474, respectively. Of these shares,
1,446,123 and 1,222,644 were contributed by the Company during the Plan years
ended December 31, 1995 and 1994, respectively, as the Company's matching
contributions. As of December 31, 1995 and 1994, the Plan's benefit claims
payable was $67,482,454 and $33,925,640, which includes 956,517 and 583,087
shares of MCI Communications Corporation Common Stock at fair market values of
$24,989,007 and $10,714,224, respectively. Net assets include account balances
of participants who have terminated from the Company and have not received a
distribution as of year end.
NOTE 6 - TRANSFER OF ASSETS TO (FROM) THE PLAN
During the years ended December 31, 1995 and 1994, certain participants
transferred between the Plan and the MCI Consumer Markets 401(k). During the
years ended December 31, 1995 and 1994, assets valued at $2,463,858 and
$2,968,626, respectively, including 47,040 and 75,651 shares of MCI
Communications Corporation Common Stock at a fair value of $1,021,414 and
$1,826,228, respectively, were transferred to the Plan.
During the years ended December 31, 1995 and 1994, certain participants
transferred between the Plan and the Western Union International 401(k) Plan for
Collectively Bargained Employees. During the years ended December 31, 1995 and
1994, assets valued at $128,838 and $111,121, respectively, including 2,101 and
1,556 shares of MCI Communications Corporation Common Stock at a fair value of
$39,706 and $42,169, respectively, were transferred to the Plan.
NOTE 7 - FEDERAL INCOME TAX STATUS
As described in Note 1, the Plan is Part II of the MCI Communications
Corporation Employee Stock Ownership Plan and 401(k), which, as amended through
January 24, 1995, has been determined by letter dated January 31, 1996, by the
IRS to be qualified under Section 401 of the Internal Revenue Code.
Page 42
<PAGE>
NOTE 8 - SUBSEQUENT EVENTS
Effective January 1, 1996, the MCI Communications Corporation Employee Stock
Ownership Plan and 401(k) and the MCI Consumer Markets 401(k) and Employee Stock
Ownership Plan were restructured and renamed the MCI Communications Corporation
Employee Stock Ownership Plan and 401(k) for Exempt Employees and the MCI
Communications Corporation Employee Stock Ownership Plan and 401(k) for
Non-Exempt Employees, respectively.
Page 43
<PAGE>
<TABLE>
SCHEDULE I
MCI COMMUNICATIONS CORPORATION
DEFINED CONTRIBUTION MASTER TRUST
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1995
<CAPTION>
CURRENT
NUMBER VALUE AT
DESCRIPTION/ISSUER OF SHARES COST 12/31/95
- ------------------ --------- ------------ ------------
<S> <C> <C> <C>
LOANS TO PARTICIPANTS
Participant loan accounts (rates range 7% - 11%) $ 0 $ 20,447,333
------------
INTEREST IN COLLECTIVE INVESTMENT
FUNDS OF TRUSTEE
* Mellon Bank Temporary
Investment Fund 1,623,636 1,623,636
------------
INTEREST IN REGISTERED INVESTMENT
COMPANIES
EuroPacific Growth Fund 642,038 14,244,292 14,850,336
* Dreyfus S&P 500 Stock Index 4,368,801 46,527,543 58,410,869
* Putnam Voyager Fund 7,045,759 77,726,320 107,447,826
* Putnam New Opportunities 768,774 22,695,870 28,406,194
* Putnam Balanced Retirement 1,894,828 18,081,275 19,099,867
------------
Total investment in registered
investment companies 228,215,092
------------
GUARANTEED INVESTMENT CONTRACTS **
Stable Asset Fund
Aetna Life Insurance (6.63% Matures 6/30/00) 19,041,899 19,041,899
Allstate Life Insurance Company (5.90% Matures 7/1/98) 6,113,549 6,113,549
John Hancock Mutual Life Insurance (8.05% Matures 6/30/99) 13,198,728 13,198,728
Metropolitan Life Insurance (8.96% Matures 6/30/96) 13,623,754 13,623,754
New York Life Insurance (6.82% Matures 3/31/98) 8,281,679 8,281,679
New York Life Insurance (8.08% Matures 12/31/99) 5,369,604 5,369,604
Peoples Security Insurance Company (5.72% Matures 12/31/98) 7,400,229 7,400,229
Peoples Security Insurance Company (5.86% Matures 3/31/98) 5,219,396 5,219,396
Principal Mutual Life Insurance (9.10% Matures 12/31/96) 14,445,534 14,445,534
Prudential Life Insurance (7.00% Matures 9/30/98) 5,634,458 5,634,458
TransAmerica Life Insurance (5.60% Matures 6/30/95) 3,426,163 3,426,163
TransAmerica Life Insurance (7.25% Matures 12/31/98) 2,543,520 2,543,520
------------
Total guaranteed investment contracts 104,298,513
------------
COMMON STOCK
* MCI Communications Corporation 9,432,797 192,744,114 246,431,822
------------
TOTAL INVESTMENTS $601,016,396
============
<FN>
* Denotes a party-in-interest
** Current value is considered to be contract value.
</FN>
</TABLE>
Page 44
<PAGE>
<TABLE>
SCHEDULE II
MCI COMMUNICATIONS CORPORATION
DEFINED CONTRIBUTION MASTER TRUST
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
Transactions or series of transactions exceeding 5% of the beginning fair values
of master trust assets for the plan year January 1, 1995 to December 31, 1995
are considered reportable transactions. Fair value at January 1, 1995 is
$385,673,168. Five percent (5%) of fair value is $19,283,658.
Identity Expense Current
of incurred value of asset
party Purchase Selling Lease with Cost of on transaction Net gain
involved Description of asset price price rental transaction asset date or (loss)
- -------- ----------------------- -------------- ------------- ------ ----------- -------------- -------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
* Putnam Voyager Fund $ 24,770,442 $ 24,770,442 $ 24,770,442 $ 0
(163 purchases)
* Putnam Voyager Fund $ 8,062,112 $ 6,053,278 $ 8,062,112 $2,008,834
(91 sales)
* Putnam Balanced
Retirement Fund $ 18,693,949 $ 18,693,949 $ 18,693,949 $ 0
(107 purchases)
* Putnam Balanced
Retirement Fund $ 1,128,683 $ 1,102,082 $ 1,128,683 $ 26,601
(44 sales)
* Putnam New Opportunities $ 18,923,692 $ 18,923,692 $ 18,923,692 $ 0
(210 purchases)
* Putnam New Opportunities $ 665,047 $ 565,914 $ 665,047 $ 99,133
(42 sales)
Stable Asset Fund $ 10,425,000 $ 10,425,000 $ 10,425,000 $ 0
(6 purchases)
Stable Asset Fund $ 11,853,080 $ 11,853,080 $ 11,853,080 $ 0
(6 sales)
* Mellon Bank Temporary $ 20,088,862 $ 20,088,862 $ 20,088,862 $ 0
Investment Fund (135 sales)
<FN>
* Denotes a party-in-interest
</FN>
</TABLE>
Page 45
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan
sponsor of the MCI Communications Corporation Employee Stock Ownership Plan and
401(k) has duly caused this annual report to be signed on its behalf by the
undersigned, thereunto duly authorized.
MCI COMMUNICATIONS CORPORATION
RETIREMENT SAVINGS PLAN - PART
II OF THE MCI COMMUNICATIONS
CORPORATION EMPLOYEE STOCK
OWNERSHIP AND 401(k)
Date: June 28, 1996 By: David M. Case
------------------------------
David M. Case
Vice President and Controller
MCI Communications Corporation
Page 46
Exhibit 23
----------
MCI COMMUNICATIONS CORPORATION
RETIREMENT SAVINGS PLAN
EIN: 52-0886267
CONSENT OF INDEPENDENT ACCOUNTANTS
----------------------------------
We hereby consent to the incorporation by reference in the Prospectus
constituting part of the Registration Statement of Form S-8 (No. 33-21740) of
MCI Communications Corporation of our report dated June 14, 1996, appearing on
page 3 of this Form 11-K.
PRICE WATERHOUSE LLP
PRICE WATERHOUSE LLP
Washington, D.C.
June 28, 1996
Page 47
Exhibit 99
----------
DOL Filing Confirmation
I certify that the Plan Administrator of the MCI Communications Corporation
Employee Stock Ownership Plan and 401(k) has received a Statement of Assets and
Liabilities and also that the statement has been filed directly with the United
States Department of Labor by Mellon Bank, N.A. (EIN # 25-0659206) for the
following investment arrangements:
EIN #
--------------
Mellon Bank Temporary Investment Fund 25-6078903-980
MCI COMMUNICATIONS CORPORATION
RETIREMENT SAVINGS PLAN - PART
II OF THE MCI COMMUNICATIONS
CORPORATION EMPLOYEE STOCK
OWNERSHIP AND 401(k)
Date: June 28, 1996 By: David M. Case
------------------------------
David M. Case
Vice President and Controller
MCI Communications Corporation
Page 48
