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 Consumer Markets 401(k) Plan -
Part I of the MCI Consumer Markets 401(k) and ESOP
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 CONSUMER MARKETS 401(K) PLAN
EIN: 13-2745892
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 7-42
Additional Information:
Schedule I.
Schedule of Assets Held for
Investment Purposes at
December 31, 1995 43
Schedule II.
Schedule of Reportable
Transactions for the year
ended December 31, 1995 44
Signature 45
Exhibits:
23. Consent of Independent Accountants 46
99. Certification Regarding Certain
Investment Arrangements 47
Page 2
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REPORT OF INDEPENDENT ACCOUNTANTS
To the Participants and Administrative
Committee of the MCI Consumer Markets 401(k) 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 Consumer Markets 401(k) Plan - Part I of the MCI Consumer Markets
401(k) and ESOP 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
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MCI CONSUMER MARKETS 401(k) PLAN
EIN: 13-2745892
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31
-----------
1995 1994
----------- -----------
Value of interest in master trust $63,794,793 $38,102,347
----------- -----------
Net assets available for benefits $63,794,793 $38,102,347
=========== ===========
See accompanying notes to the financial statements.
Page 4
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MCI CONSUMER MARKETS 401(k) PLAN
EIN: 13-2745892
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1995
ADDITIONS
- ---------
Contributions:
Participants $ 11,782,088
Non-cash employer 6,565,128
Rollovers 835,393
------------
Total contributions 19,182,609
------------
Earnings on investments:
Interest on participant loans 160,175
Interest on guaranteed investment contracts 716,230
Dividends on common stock 57,302
Net gain on disposition of assets 574,244
Unrealized appreciation of assets 8,783,448
Net gain from registered investment companies 4,988,370
------------
Total earnings on investments 15,279,769
------------
Total additions 34,462,378
------------
DEDUCTIONS
- ----------
Participant benefit payments 6,277,580
Fees 28,494
------------
Net increase 28,156,304
Net interplan transfers (2,463,858)
Net assets available for benefits, at
beginning of year 38,102,347
------------
Net assets available for benefits, at
end of year $ 63,794,793
============
See accompanying notes to the financial statements.
Page 5
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MCI CONSUMER MARKETS 401(k) PLAN
EIN: 13-2745892
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 1994
ADDITIONS
- ---------
Contributions:
Participants $ 10,276,746
Non-cash employer 5,878,160
Rollovers 662,020
Non-cash supplemental 3,341,420
------------
Total contributions 20,158,346
------------
Earnings on investments:
Interest on participant loans 79,370
Interest on guaranteed investment contracts 539,178
Dividends on common stock 35,672
Net (loss) on disposition of assets (171,694)
Unrealized (depreciation) of assets (6,068,896)
Net gain from registered investment companies 300,674
------------
Total (losses) on investments (5,285,696)
------------
Total additions 14,872,650
------------
DEDUCTIONS
- ----------
Participant benefit payments 1,872,131
------------
Net increase 13,000,519
Net interplan transfers (2,968,626)
Net loans 15,302
Net assets available for benefits, at
beginning of year 28,055,152
------------
Net assets available for benefits, at
end of year $ 38,102,347
============
See accompanying notes to the financial statements.
Page 6
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MCI CONSUMER MARKETS 401(k) PLAN
EIN: 13-2745892
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 Consumer Markets 401(k) Plan (the
"Plan" or "401(k)") 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 January 1, 1993, MCI Consumer Markets 401(k) & ESOP Plan was created.
MCI Consumer Markets is a business unit of MCI Telecommunications Corporation
("MCIT"), which is a wholly owned subsidiary of MCI Communications Corporation.
The MCI Consumer Markets 401(k) & ESOP is comprised of two parts: Part I is the
401(k) Plan and Part II is a payroll-based employee stock ownership plan. The
accompanying financial statements are solely those of Part I, the MCI Consumer
Markets 401(k) and are not intended to present the net assets available for
benefits or the changes in net assets available for benefits of the MCI Consumer
Markets 401(k) & ESOP taken as a whole. MCI Communications Corporation,
hereafter known as the Company, separately prepares an annual report on the
overall MCI Consumer Markets 401(k) & ESOP 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 MCI Consumer Markets 401(k) were
combined with those of the MCI Communications Corporation Retirement Savings
Plan ("RSP") into the MCI Communications Corporation Defined Contribution Master
Trust ("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.
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 MCIT
on behalf of such employees ("Elective Contributions").
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<PAGE>
Prior to January 1, 1994, employees could defer up to 12% of eligible
compensation under the Plan. The first 6% of each participant's Elective
Contribution is eligible for an MCIT matching contribution in the form of MCI
Communications Corporation Common Stock. Effective January 1, 1994, MCIT's
matching contributions were increased from $.50 to $.67 for each eligible dollar
of Elective Contributions made to the Plan. MCIT'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 MCIT transfers these contributions to the Plan each pay period. Participants
vest in MCIT'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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- 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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- 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
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fund balances into the seven remaining funds. The available 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, MCIT 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 MCIT'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
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in their share of the supplemental contribution at the rate of 20% per year of
credited service. 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 $3,341,420, was made in the form of 146,073 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,
$2,052,500 and $1,744,248 in loans were disbursed and principal repayments of
$997,674 and $488,556, respectively, were made.
Certain participants have the right to diversify a portion of their account in
the Employee Stock Ownership Plan (ESOP), Part II of the MCI Consumer Markets
401(k) & ESOP 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. There were no ESOP diversifications to the 401(k) during
1995 and 1994. In addition to ESOP diversification, during 1995, 19,130 shares
of MCI Communications Corporation Common Stock at a fair market value on the
diversification date of $456,683 were transferred from the Employer Matching
Contributions accounts to the Elective Contributions accounts pursuant to these
provisions.
Distribution of the benefits in a participant's Plan account is normally made
only after the participant ceases to be an employee of MCIT. However, the
account balance of a participant's
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Elective Contributions may be withdrawn prior to termination of employment if
the participant can demonstrate an economic hardship (as defined in the Plan).
Upon termination of employment, a participant receives all vested assets in his
individual account. Non-vested portions of a terminated participant's account
are forfeited and used to offset future MCIT 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 $655,370 and $143,283, respectively, which
included 23,585 and 6,159 forfeited shares of MCI Communications Corporation
Common Stock, at year-end fair market values of $616,158 and $113,172,
respectively.
The Plan is not a defined benefit plan and accordingly, Plan benefits are not
guaranteed by the Pension Benefit Guaranty Corporation. MCIT 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. MCIT 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. MCIT
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.
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
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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.
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
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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 RSP
and the Plan 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 $63,794,793 and $38,102,347
representing approximately 11% and 10% of the net assets of the Master Trust as
of December 31, 1995 and 1994, respectively.
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The fund information below presents the percentage interest of each plan in the
Master Trust using specific identification:
<TABLE>
<CAPTION>
Percentage Interest
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 Fund 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 RSP
participate.
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<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>
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<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>
Contribution receivables:
Employee $ 10,921 $ 6,530 $ 3,005 $ 21,810 $ 2,677 $ 640
Employer 0 0 0 0 0 0
----------- ----------- ----------- ------------ ----------- ---------
Total contribution receivables 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>
Contribution receivables:
Employee $ 1,016 $ 33,483 $ 916 $ 460 $ 407 $ 3,470
Employer 0 0 0 0 0 0
--------- ------------ ------------- ---------- ------------ ------------
Total contribution receivables 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>
Contribution receivables:
Employee $ 344 $ 50,801 $ 2,896 $ 58,178 $ 0 $ 197,554
Employer 0 0 0 117,255 0 117,255
----------- ------------- ------------- ------------- ------------ -------------
Total contribution receivables 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
<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 $2,783,794 $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 contribution 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 45,952 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 CONSUMER MARKETS 401(k) PLAN
EIN: 13-2745892
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 $ 1,880,771 $ 701,182 $ 925,935 $ (77,958) $ (3,588) $ 184,407 $ 150,793
Putnam Balanced Fund 0 387,070 232,115 (13,412) (583) (688,617) 83,427
Scudder Income Fund 0 191,173 102,253 (12,000) 175 (306,105) 24,504
Dreyfus S&P 500 Stock Index 6,770,327 4,297,912 1,505,194 (378,880) (160,142) (186,864) 1,693,107
Putnam Growth & Income 0 211,480 177,871 (12,245) 1,337 (427,315) 48,872
Putnam Investors Fund 0 31,799 42,196 (953) (3,605) (78,811) 9,374
Putnam Vista Fund 0 82,784 44,259 (4,415) (6,483) (139,194) 23,049
Putnam Voyager Fund 8,389,856 4,522,863 2,680,150 (559,718) (160,459) (171,376) 2,078,396
Putnam Convertible Income-Growth 0 48,238 45,124 (1,211) (6,696) (96,014) 10,559
Putnam High Yield Advantage 0 38,797 19,476 (1,757) 112 (61,518) 4,890
Putnam Global Gov't Income 0 17,606 11,784 (232) 214 (31,108) 1,736
Putnam OTC Emerging Growth 0 240,712 176,064 (10,569) (17,907) (447,783) 59,483
Putnam Diversified Income 0 47,782 16,064 (1,155) 1,624 (69,944) 5,629
Stable Asset Fund 10,052,165 10,363,043 2,233,456 (1,678,303) (313,848) (1,268,413) 716,230
Putnam New Opportunities 3,303,794 378,066 1,134,669 (78,294) (17,271) 1,292,857 593,767
Putnam Balanced Retirement 2,304,389 0 622,136 (77,948) (23,226) 1,582,643 200,784
MCI Common Stock 28,615,233 14,717,341 9,213,863 (3,070,129) (184,305) (1,476,531) 9,414,994
Participant Loans
(interest rates range 7% - 11%) 2,478,258 1,824,499 0 (326,895) 894,651 (74,172) 160,175
-------------- -------------- -------------- ------------- ----------- ------------- -------------
Total $ 63,794,793 $ 38,102,347 $ 19,182,609 $ (6,306,074) $ 0 $ (2,463,858) $ 15,279,769
============== ============== ============== ============= =========== ============= =============
</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 CONSUMER MARKETS 401(k) PLAN
EIN: 13-2745892
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
Other receivables 32,425 40,872 1,314 140
------------ ------------ ------------ -------------
Total receivables 46,662 63,770 47,821 40,336
Non-interest bearing cash 209 8,383 6,936 13,705
Investments, at fair value:
Common stock 0 0 0 0
Common/collective trusts 2 1,445 133 150,186
Registered investment companies 1,866,323 6,772,946* 8,415,511* 0
Participant loans 0 0 0 0
Investments, at contract value:
Value of guaranteed investment contracts 0 0 0 9,850,316*
------------ ------------ ------------ -------------
Total assets 1,913,196 6,846,544 8,470,401 10,054,543
------------ ------------ ------------ -------------
LIABILITIES
-----------
Operating payables 32,425 76,217 80,545 2,378
------------ ------------ ------------ -------------
Net assets available for benefits $ 1,880,771 $ 6,770,327 $ 8,389,856 $ 10,052,165
============ ============ ============ =============
<FN>
* Investment represents 5% or more of the Trust's net assets.
</FN>
</TABLE>
Page 31
<PAGE>
<TABLE>
MCI CONSUMER MARKETS 401(k) PLAN
EIN: 13-2745892
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 $ 51,920 $ 0 $ 221,936
Employer 0 0 126,693 0 126,693
Other receivables 141 19,567 7 0 94,466
------------- ------------- ------------- ------------ -------------
Total receivables 27,006 38,880 178,620 0 443,095
Non-interest bearing cash 0 0 0 0 29,233
Investments, at fair value:
Common stock 0 0 28,434,032* 0 28,434,032
Common/collective trusts 162 146 2,581 0 154,655
Registered investment companies 3,281,035* 2,291,462 0 0 22,627,277
Participant loans 0 0 0 2,478,258 2,478,258
Investments, at contract value:
Value of guaranteed investment contracts 0 0 0 0 9,850,316
------------- ------------- ------------- ------------ -------------
Total assets 3,308,203 2,330,488 28,615,233 2,478,258 64,016,866
------------- ------------- ------------- ------------ -------------
LIABILITIES
-----------
Operating payables 4,409 26,099 0 0 222,073
------------- ------------- ------------- ------------ -------------
Net assets available for benefits $ 3,303,794 $ 2,304,389 $ 28,615,233 $ 2,478,258 $ 63,794,793
============= ============= ============= ============ =============
<FN>
* Investment represents 5% or more of the Trust's net assets.
</FN>
</TABLE>
Page 32
<PAGE>
<TABLE>
MCI CONSUMER MARKETS 401(k) PLAN
EIN: 13-2745892
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>
Contribution receivables:
Employee $ 10,921 $ 6,530 $ 3,005 $ 21,810 $ 2,677 $ 640
Employer 0 0 0 0 0 0
----------- ----------- ----------- ------------ ----------- ---------
Total contribution receivables 10,921 6,530 3,005 21,810 2,677 640
Other receivables 3,554 1,018 48 10,036 19 0
Investments, at fair value:
Common stock 0 0 0 0 0 0
Common/collective trusts 0 0 0 15 0 0
Registered investment companies 686,707 379,522 188,120 4,266,051* 208,784 31,159
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 701,182 387,070 191,173 4,297,912 211,480 31,799
----------- ----------- ----------- ------------ ----------- ---------
LIABILITIES
-----------
Operating payables 0 0 0 0 0 0
----------- ----------- ----------- ------------ ----------- ---------
Net assets available for benefits $ 701,182 $ 387,070 $ 191,173 $ 4,297,912 $ 211,480 $ 31,799
=========== =========== =========== ============ =========== =========
<FN>
* Investment represents 5% or more of the Trust's net assets.
</FN>
</TABLE>
Page 33
<PAGE>
<TABLE>
MCI CONSUMER MARKETS 401(k) PLAN
EIN: 13-2745892
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>
Contribution receivables:
Employee $ 1,016 $ 33,483 $ 916 $ 460 $ 407 $ 3,470
Employer 0 0 0 0 0 0
--------- ------------ ------------- ---------- ------------ ------------
Total contribution receivables 1,016 33,483 916 460 407 3,470
Other receivables 0 9,988 83 57 0 84
Investments, at fair value:
Common stock 0 0 0 0 0 0
Common/collective trusts 0 114 0 0 0 0
Registered investment companies 81,768 4,479,278* 47,239 38,280 17,199 237,158
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 82,784 4,522,863 48,238 38,797 17,606 240,712
--------- ------------ ------------- ---------- ------------ ------------
LIABILITIES
-----------
Operating payables 0 0 0 0 0 0
--------- ------------ ------------- ---------- ------------ ------------
Net assets available for benefits $ 82,784 $ 4,522,863 $ 48,238 $ 38,797 $ 17,606 $ 240,712
========= ============ ============= ========== ============ ============
<FN>
* Investment represents 5% or more of the Trust's net assets.
</FN>
</TABLE>
Page 34
<PAGE>
<TABLE>
MCI CONSUMER MARKETS 401(k) PLAN
EIN: 13-2745892
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>
Contribution receivables:
Employee $ 344 $ 50,801 $ 2,896 $ 58,178 $ 0 $ 197,554
Employer 0 0 0 117,255 0 117,255
----------- ------------- ------------- ------------- ------------ -------------
Total contribution receivables 344 50,801 2,896 175,433 0 314,809
Other receivables 0 196 0 1 0 25,084
Investments, at fair value:
Common stock 0 0 0 14,541,466* 0 14,541,466
Common/collective trusts 0 145,682 0 441 0 146,252
Registered investment companies 47,438 0 379,389 0 0 11,088,092
Participant loans 0 0 0 0 1,824,499 1,824,499
Investments, at contract value:
Value of guaranteed investment contracts 0 10,166,364* 0 0 0 10,166,364
----------- ------------- ------------- ------------- ------------ -------------
Total assets 47,782 10,363,043 382,285 14,717,341 1,824,499 38,106,566
----------- ------------- ------------- ------------- ------------ -------------
LIABILITIES
-----------
Operating payables 0 0 4,219 0 0 4,219
----------- ------------- ------------- ------------- ------------ -------------
Net assets available for benefits $ 47,782 $ 10,363,043 $ 378,066 $ 14,717,341 $ 1,824,499 $ 38,102,347
=========== ============= ============= ============= ============ =============
<FN>
* Investment represents 5% or more of the Trust's net assets.
</FN>
</TABLE>
Page 35
<PAGE>
<TABLE>
MCI CONSUMER MARKETS 401(k) PLAN
EIN: 13-2745892
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 $ 861,411 $ 212,801 $ 93,432 $ 1,393,296 $ 120,271 $ 21,358 $ 31,981
Non-cash employer 0 0 0 0 0 0 0
Rollovers 64,524 19,314 8,821 111,898 57,600 20,838 12,278
------------ ---------- ---------- ------------ ---------- --------- --------
Total contributions 925,935 232,115 102,253 1,505,194 177,871 42,196 44,259
------------ ---------- ---------- ------------ ---------- --------- --------
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 150,793 83,427 24,504 1,693,107 48,872 9,374 23,049
------------ ---------- ---------- ------------ ---------- --------- ---------
Total earnings on investments 150,793 83,427 24,504 1,693,107 48,872 9,374 23,049
------------ ---------- ---------- ------------ ---------- --------- ---------
Total additions 1,076,728 315,542 126,757 3,198,301 226,743 51,570 67,308
DEDUCTIONS
- ----------
Participant benefit payments 77,162 13,218 11,926 375,544 12,182 918 4,390
Fees 796 194 74 3,336 63 35 25
------------ ---------- ---------- ------------ ---------- --------- ----------
Net increase 998,770 302,130 114,757 2,819,421 214,498 50,617 62,893
Transfers from (to):
Other master trust investment accounts 268,344 (668,271) (305,922) 177,693 (422,194) (79,717) (183,632)
Net loans (3,588) (583) 175 (160,142) 1,337 (3,605) (6,483)
MCI Communications Retirement Savings Plan (83,937) (20,346) (183) (364,557) (5,121) 906 44,438
Net assets available for benefits, at
beginning of year 701,182 387,070 191,173 4,297,912 211,480 31,799 82,784
------------ ---------- ---------- ------------ ---------- --------- ----------
Net assets available for benefits, at
end of year $ 1,880,771 $ 0 $ 0 $ 6,770,327 $ 0 $ 0 $ 0
============ ========== ========== ============ ========== ========= ==========
</TABLE>
Page 36
<PAGE>
<TABLE>
MCI CONSUMER MARKETS 401(k) PLAN
EIN: 13-2745892
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 $ 2,526,517 $ 32,195 $ 19,476 $ 11,784 $ 141,209 $ 16,064
Non-cash employer 0 0 0 0 0 0
Rollovers 153,633 12,929 0 0 34,855 0
------------ ------------- ---------- ------------ ------------ -----------
Total contributions 2,680,150 45,124 19,476 11,784 176,064 16,064
------------ ------------- ---------- ------------ ------------ -----------
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 2,078,396 10,559 4,890 1,736 59,483 5,629
----------- ------------- ---------- ------------ ------------ -----------
Total earnings on investments 2,078,396 10,559 4,890 1,736 59,483 5,629
----------- ------------- ---------- ------------ ------------ -----------
Total additions 4,758,546 55,683 24,366 13,520 235,547 21,693
DEDUCTIONS
- ----------
Participant benefit payments 555,050 1,186 1,729 225 10,443 1,144
Fees 4,668 25 28 7 126 11
----------- ------------- ---------- ------------ ------------ -----------
Net increase 4,198,828 54,472 22,609 13,288 224,978 20,538
Transfers from (to):
Other master trust investment accounts 257,303 (94,894) (62,109) (30,662) (458,898) (69,446)
Net loans (160,459) (6,696) 112 214 (17,907) 1,624
MCI Communications Retirement Savings Plan (428,679) (1,120) 591 (446) 11,115 (498)
Net assets available for benefits, at
beginning of year 4,522,863 48,238 38,797 17,606 240,712 47,782
------------ ------------- ---------- ------------ ------------ -----------
Net assets available for benefits, at
end of year $ 8,389,856 $ 0 $ 0 $ 0 $ 0 $ 0
============ ============= ========== ============ ============ ===========
</TABLE>
Page 37
<PAGE>
<TABLE>
MCI CONSUMER MARKETS 401(k) PLAN
EIN: 13-2745892
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 $ 2,147,967 $ 972,447 $ 589,048 $ 2,590,831 $ 0 $ 11,782,088
Non-cash employer 0 0 0 6,565,128 0 6,565,128
Rollovers 85,489 162,222 33,088 57,904 0 835,393
------------- ------------- ------------ ------------- ------------ -------------
Total contributions 2,233,456 1,134,669 622,136 9,213,863 0 19,182,609
------------- ------------- ------------ ------------- ------------ -------------
Earnings on investments:
Interest on participant loans 0 0 0 0 160,175 160,175
Interest on guaranteed investment contracts 716,230 0 0 0 0 716,230
Dividends on common stock 0 0 0 57,302 0 57,302
Net gain on disposition of assets 0 0 0 574,244 0 574,244
Unrealized appreciation of assets 0 0 0 8,783,448 0 8,783,448
Net gain from registered investment
companies 0 593,767 200,784 0 0 4,988,370
------------- ------------- ------------ ------------- ------------ -------------
Total earnings on investments 716,230 593,767 200,784 9,414,994 160,175 15,279,769
------------- ------------- ------------ ------------- ------------ -------------
Total additions 2,949,686 1,728,436 822,920 18,628,857 160,175 34,462,378
DEDUCTIONS
- ----------
Participant benefit payments 1,670,191 77,493 77,257 3,060,627 326,895 6,277,580
Fees 8,112 801 691 9,502 0 28,494
------------- ------------- ------------ ------------- ------------ -------------
Net increase 1,271,383 1,650,142 744,972 15,558,728 (166,720) 28,156,304
Transfers from (to):
Other master trust investment accounts (861,070) 1,361,740 1,626,852 (455,117) 0 0
Net loans (313,848) (17,271) (23,226) (184,305) 894,651 0
MCI Communications Retirement Savings Plan (407,343) (68,883) (44,209) (1,021,414) (74,172) (2,463,858)
Net assets available for benefits, at
beginning of year 10,363,043 378,066 0 14,717,341 1,824,499 38,102,347
------------- ------------- ------------ ------------- ------------ -------------
Net assets available for benefits, at
end of year $ 10,052,165 $ 3,303,794 $ 2,304,389 $ 28,615,233 $ 2,478,258 $ 63,794,793
============= ============= ============ ============= ============ =============
</TABLE>
Page 38
<PAGE>
<TABLE>
MCI CONSUMER MARKETS 401(k) PLAN
EIN: 13-2745892
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 $ 395,022 $ 239,537 $ 115,919 $ 1,340,969 $ 96,313 $ 20,287
Non-cash employer 0 0 0 0 0 0
Rollovers 41,810 64,885 73,515 22,977 42,639 743
Non-cash supplemental 0 0 0 0 0 0
----------- ----------- ----------- ------------ ----------- ---------
Total contributions 436,832 304,422 189,434 1,363,946 138,952 21,030
----------- ----------- ----------- ------------ ----------- ---------
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 (6,211) 443 7,198 104,202 (204) 116
----------- ----------- ----------- ------------ ----------- ---------
Total (losses) earnings on investments (6,211) 443 7,198 104,202 (204) 116
----------- ----------- ----------- ------------ ----------- ---------
Total additions 430,621 304,865 196,632 1,468,148 138,748 21,146
DEDUCTIONS
- ----------
Participant benefit payments 11,756 3,010 1,939 145,042 1,701 79
----------- ----------- ----------- ------------ ----------- ---------
Net increase 418,865 301,855 194,693 1,323,106 137,047 21,067
Transfers from (to):
Other master trust investment accounts 274,580 68,267 8,051 (256,204) 80,675 10,856
Net loans 1,372 (8,854) (13,191) (150,403) (15,845) (259)
MCI Communications Retirement Savings Plan 6,365 25,802 1,620 495,018 9,603 135
Net assets available for benefits, at
beginning of year 0 0 0 2,886,395 0 0
----------- ----------- ----------- ------------ ----------- ---------
Net assets available for benefits, at
end of year $ 701,182 $ 387,070 $ 191,173 $ 4,297,912 $ 211,480 $ 31,799
=========== =========== =========== ============ =========== =========
</TABLE>
Page 39
<PAGE>
<TABLE>
MCI CONSUMER MARKETS 401(k) PLAN
EIN: 13-2745892
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 $ 35,573 $ 2,109,536 $ 35,019 $ 23,147 $ 14,071 $ 152,836
Non-cash employer 0 0 0 0 0 0
Rollovers 10,049 57,503 8,283 11,515 621 17,426
Non-cash supplemental 0 0 0 0 0 0
--------- ------------ ------------- ---------- ------------ ------------
Total contributions 45,622 2,167,039 43,302 34,662 14,692 170,262
--------- ------------ ------------- ---------- ------------ ------------
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 62 158,864 (445) (1,121) (412) 20,226
--------- ------------ ------------- ---------- ------------ ------------
Total (losses) earnings on investments 62 158,864 (445) (1,121) (412) 20,226
--------- ------------ ------------- ---------- ------------ ------------
Total additions 45,684 2,325,903 42,857 33,541 14,280 190,488
DEDUCTIONS
- ----------
Participant benefit payments 104 170,409 123 655 26 588
--------- ------------ ------------- ---------- ------------ ------------
Net increase 45,580 2,155,494 42,734 32,886 14,254 189,900
Transfers from (to):
Other master trust investment accounts 29,496 (87,175) 3,974 6,978 3,026 42,546
Net loans (2,918) (201,837) (336) (4,294) 400 (3,035)
MCI Communications Retirement Savings Plan 10,626 (736,151) 1,866 3,227 (74) 11,301
Net assets available for benefits, at
beginning of year 0 3,392,532 0 0 0 0
--------- ------------ ------------- ---------- ------------ ------------
Net assets available for benefits, at
end of year $ 82,784 $ 4,522,863 $ 48,238 $ 38,797 $ 17,606 $ 240,712
========= ============ ============= ========== ============ ============
</TABLE>
Page 40
<PAGE>
<TABLE>
MCI CONSUMER MARKETS 401(k) PLAN
EIN: 13-2745892
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 $ 15,698 $ 2,533,429 $ 211,166 $ 2,938,224 $ 0 $ 10,276,746
Non-cash employer 0 0 0 5,878,160 0 5,878,160
Rollovers 21,935 208,508 33,115 46,496 0 662,020
Non-cash supplemental 0 0 0 3,341,420 0 3,341,420
----------- ------------- ------------- ------------- ------------ -------------
Total contributions 37,633 2,741,937 244,281 12,204,300 0 20,158,346
----------- ------------- ------------- ------------- ------------ -------------
Earnings on investments:
Interest on participant loans 0 0 0 0 79,370 79,370
Interest on guaranteed investment contracts 0 539,178 0 0 0 539,178
Dividends on common stock 0 0 0 35,672 0 35,672
Net (loss) on disposition of assets 0 0 0 (171,694) 0 (171,694)
Unrealized (depreciation) of assets 0 0 0 (6,068,896) 0 (6,068,896)
Net (loss) gain from registered investment
companies (2,069) 0 20,025 0 0 300,674
----------- ------------- ------------- ------------- ------------ -------------
Total (losses) earnings on investments (2,069) 539,178 20,025 (6,204,918) 79,370 (5,285,696)
----------- ------------- ------------- ------------- ------------ -------------
Total additions 35,564 3,281,115 264,306 5,999,382 79,370 14,872,650
DEDUCTIONS
- ----------
Participant benefit payments 25 648,983 1,366 826,360 59,965 1,872,131
----------- ------------- ------------- ------------- ------------ -------------
Net increase 35,539 2,632,132 262,940 5,173,022 19,405 13,000,519
Transfers from (to):
Other master trust investment accounts 20,418 (485,000) 101,000 178,512 0 0
Net loans (8,660) (582,405) (2,313) (183,656) 1,191,536 15,302
MCI Communications Retirement Savings Plan 485 (1,104,535) 16,439 (1,826,228) 115,875 (2,968,626)
Net assets available for benefits, at
beginning of year 0 9,902,851 0 11,375,691 497,683 28,055,152
----------- ------------- ------------- ------------- ------------ -------------
Net assets available for benefits, at
end of year $ 47,782 $ 10,363,043 $ 378,066 $ 14,717,341 $ 1,824,499 $ 38,102,347
=========== ============= ============= ============= ============ =============
</TABLE>
Page 41
<PAGE>
NOTE 5 - PARTICIPANTS' ACCOUNTS
As of December 31, 1995 and 1994, the Plan held 1,089,037 and 793,127 shares of
MCI Communications Corporation Common Stock at fair market values of $28,451,092
and $14,573,709, respectively. Of these shares, 295,130 and 283,770 were
contributed by MCIT during the Plan years ended December 31, 1995 and 1994,
respectively, as MCIT's matching contributions. As of December 31, 1995 and
1994, the Plan's benefit claims payable was $10,457,005 and $4,376,143,
respectively, which includes 159,503 and 97,495 shares of MCI Communications
Corporation Common Stock at fair market values of $4,167,016 and $1,791,471,
respectively. Net assets include account balances of participants who have
terminated from MCIT 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 RSP. 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 RSP.
NOTE 7 - FEDERAL INCOME TAX STATUS
As described in Note 1, the Plan is Part I of the MCI Consumer Markets 401(k) &
ESOP. The Plan, 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.
NOTE 8 - SUBSEQUENT EVENTS
Effective January 1, 1996, the MCI Consumer Markets 401(k) and Employee Stock
Ownership Plan and the MCI Communications Corporation Employee Stock Ownership
Plan and 401(k) were restructured and renamed the MCI Communications Corporation
Employee Stock Ownership Plan and 401(k) for Non-Exempt Employees and the MCI
Communications Corporation Employee Stock Ownership Plan and 401(k) for Exempt
Employees, respectively.
Page 42
<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 43
<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.
<CAPTION>
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 44
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan
sponsor of the MCI Consumer Markets 401(k) & ESOP has duly caused this annual
report to be signed on its behalf by the undersigned, thereunto duly authorized.
MCI CONSUMER MARKETS 401(k) -
PART I OF THE MCI CONSUMER
MARKETS 401(k) & ESOP
Date: June 28, 1996 By: David M. Case
------------------------------
David M. Case
Vice President
MCI Telecommunications Corporation
Page 45
Exhibit 23
----------
MCI CONSUMER MARKETS 401(k) PLAN
EIN: 13-2745892
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. 33-49304) 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 46
Exhibit 99
DOL Filing Confirmation
I certify that the Plan Administrator of the MCI Consumer Markets 401(k) & ESOP
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 CONSUMER MARKETS 401(k) -
PART I OF THE MCI CONSUMER
MARKETS 401(k) & ESOP
Date: June 28, 1996 By: David M. Case
------------------------------
David M. Case
Vice President
MCI Telecommunications Corporation
Page 47
