SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 11-K
(MarkOne)
[ 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: Western Union International, Inc.
401(k) Plan for Collectively Bargained Employees, 201 Centennial
Avenue, Piscataway, NJ 08854
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
<PAGE>
WESTERN UNION INTERNATIONAL, INC.
401(k) PLAN FOR COLLECTIVELY BARGAINED EMPLOYEES
EIN: 13-1989550
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
Notes to Financial Statements 6-15
Additional Information:
Schedule I. Schedule of Assets Held for Investment
Purposes at December 31, 1995 16
Schedule II. Schedule of Reportable Transactions
for the year ended December 31, 1995 17
Signature 18
Exhibits:
23. Consent of Independent Accountants 19
99. DOL Filing Confirmation 20
Page 2
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Participants and Administrative
Committee of the Western Union International, Inc.
401(k) Plan for Collectively Bargained Employees
In our opinion, the accompanying statements of net assets available for
benefits, and the related statement of changes in net assets available for
benefits present fairly, in all material respects, the net assets available for
benefits of the Western Union International, Inc. 401(k) Plan for Collectively
Bargained Employees 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
<PAGE>
WESTERN UNION INTERNATIONAL, INC.
401(k) PLAN FOR COLLECTIVELY BARGAINED EMPLOYEES
EIN: 13-1989550
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
December 31,
-----------------------------
1995 1994
------------ ------------
Assets
- ------
Non-interest bearing cash $ 79,177 $ 16,785
Employer contribution receivable 40 46
------------ ------------
Total 79,217 16,831
------------ ------------
General investments:
Loans to participants 390,896 342,151
Value of interest in collective
investment funds of trustee 45,895 46,500
Value of interest in registered
investment company 5,517,170 3,110,621
Value of guaranteed investment
contracts 2,883,276 2,886,044
------------ ------------
Total general investments 8,837,237 6,385,316
------------ ------------
Employer related investments:
Employer securities 4,168,087 2,439,134
------------ ------------
Total assets 13,084,541 8,841,281
------------ ------------
Liabilities
- ------------
Accounts payable (3,392) 0
------------ ------------
Net assets available for benefits $ 13,081,149 $ 8,841,281
============ ============
The accompanying notes are an integral part of these financial statements.
Page 4
<PAGE>
WESTERN UNION INTERNATIONAL, INC.
401(k) PLAN FOR COLLECTIVELY BARGAINED EMPLOYEES
EIN: 13-1989550
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Year Ended December 31,
------------------------------
1995 1994
---------- ----------
ADDITIONS
- ---------
Contributions:
Non-cash employer $ 504,446 $ 547,589
Participants 1,586,820 1,334,064
Rollovers 173,336 128,241
------------ ------------
Total contributions 2,264,602 2,009,894
------------ ------------
Earnings on investments:
Interest on guaranteed investment
contracts 296,207 244,282
Interest on participant loans 25,748 15,986
Dividends on common stock 7,660 6,160
Unrealized appreciation
(depreciation) of assets 1,059,467 (1,182,737)
Net investment gain from collective
investment funds of trustee 7,144 14,092
Net investment gain from registered
investment company 949,219 12,909
------------ ------------
Total earnings (losses) on investments 2,345,445 (889,308)
------------ ------------
Total additions 4,610,047 1,120,586
DEDUCTIONS
- ----------
Participant benefit payments (241,341) (123,229)
------------ ------------
Net increase 4,368,706 997,357
Transfer (to) from MCI Communications
Corporation Retirement Savings Plan (128,838) (111,121)
Net assets available for benefits, at
beginning of year 8,841,281 7,955,045
------------ ------------
Net assets available for benefits, at
end of year $ 13,081,149 $ 8,841,281
============ ============
The accompanying notes are an integral part of these financial statements.
Page 5
<PAGE>
WESTERN UNION INTERNATIONAL, INC.
401(k) PLAN FOR COLLECTIVELY BARGAINED EMPLOYEES
EIN: 13-1989550
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 Western Union International, Inc. 401(k)
Plan for Collectively Bargained Employees (the "Plan") 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, 1990, Western Union International, Inc. (the "Company")
established a defined contribution, deferred savings plan called the Western
Union International, Inc. 401(k) Plan for Collectively Bargained Employees. The
Plan sponsor is Western Union International, Inc., a wholly-owned subsidiary of
MCI International, Inc., which is a wholly-owned subsidiary of MCI
Communications Corporation. Employees of the Company who are represented by
American Communications Association Locals 9 or 111 and the Communications Trade
Division affiliated with the International Brotherhood of Teamsters are
generally eligible to participate in the Plan. Participants may contribute up to
15% of compensation ("Elective Contribution") under the Plan. The first 6% of
the Elective Contribution is eligible for a Company matching contribution in the
form of MCI Communications Corporation Common Stock or cash at a rate of $.50
for each dollar contributed by the employee. The Company's matching contribution
is made monthly and, when made in the form of Company Common Stock, is
determined by the closing price of MCI Communications Corporation Common Stock
on the last trading day of the month. Participants' Elective Contributions are
withheld from their weekly paychecks. The Company contributes the amounts
withheld to the Plan on behalf of each applicable participant after 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.
Participants also receive credit for years of service for each calendar year
prior to July 1, 1990 during which they completed 1,000 hours of service.
Elective Contributions may be invested in any of four investment funds available
under the Plan.
Page 6
<PAGE>
The available investment funds as of December 31, 1995 and 1994 are:
- Aggressive Equity Fund
The aggressive equity fund is invested primarily in the Putnam Voyager
Fund, which is a long term growth fund invested in a diversified
portfolio of emerging growth stocks and opportunity stocks. The fund is
allowed to use derivatives, but does not do so for speculative
purposes. The fund is managed by Putnam Investment Management, Inc.
- 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.
- Equity Index Fund
The equity index mutual fund is invested primarily in the
Dreyfus/Laurel Funds S&P 500 Stock Index Fund, 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 Long-Term Fixed Income Fund
A long-term fixed income fund which guarantees both principal and
interest through investments in guaranteed investment contracts.
Additionally, the Plan invests in individual guaranteed investment
contracts.
The following guaranteed investment contracts were held individually by
the Plan as of December 31:
Contract Value
-------------- Contract
1995 1994 Rate
---- ---- ----
John Hancock Mutual Life Insurance $875,940 $810,680 8.05%
Allstate Life Insurance 694,977 656,258 5.90%
Metropolitan Life Insurance 835,784 767,056 8.96%
Principal Mutual Life Insurance 476,576 652,050 9.10%
Page 7
<PAGE>
Each individual's investment in the MCI Common Stock Fund is recorded in his/her
participant account on a per share basis of the MCI Communications Corporation
Common Stock according to their pro rata portion of the share activity in the
fund. All other funds are tracked on a dollar value basis with each fund's
activity allocated to participants on a pro rata basis. Therefore, the Plan does
not record activity on a unit value basis.
Participants may change the allocation of their future contributions among funds
at any time.
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 by a
participant who has not attained age 59 1/2 prior to termination of employment
if the participant can demonstrate an economic hardship (as defined in the
Plan). After the age of 59 1/2, a participant may withdraw all or any portion of
his Elective Contribution account. Upon termination of employment, a participant
receives all vested assets in the accounts established on behalf of such
participant under the Plan. Non-vested portions of a terminated participant's
account are forfeited and used to offset future Company matching contributions.
For the years ended December 31, 1995 and 1994, the amount of forfeitures were
$4,293 and $3,343, respectively.
The Plan is not a defined benefit plan and, accordingly, Plan benefits are not
guaranteed by the Pension Benefit Guaranty Corporation. Plan assets are held by
the trustee, Mellon Bank, N.A. of Pittsburgh, Pennsylvania.
The Company reserves the right under the Plan to discontinue its contributions
and/or to terminate the Plan at any time. Upon 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, a Putnam
Investments, Inc. mutual fund, and a Mellon Bank collective trust account are
party-in-interest investments. The Plan Committee, the administrator of the
Plan, is also a party-in-interest.
Page 8
<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. Certain prior year information has been reclassified to conform to
the current year presentation.
The Plan's distribution of MCI Communications Corporation Common Stock to
participants is the fair market value as of the distribution date. Purchases 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 investment funds are valued at the net asset value as reported by
such funds 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.
Loans to participants are valued at cost which approximates fair value.
Administrative expenses of the Plan are paid by the Company.
Page 9
<PAGE>
NOTE 3 - NET ASSETS AVAILABLE FOR BENEFITS AND CHANGES IN NET
ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
The allocation of net assets available for benefits and the changes in net
assets available for benefits among the Plan's investment funds for years ended
December 31, 1995 and 1994 are presented on the following pages. Certain prior
year information has been reclassified to conform to the current year
presentation.
<TABLE>
WESTERN UNION INTERNATIONAL, INC.
401(k) PLAN FOR COLLECTIVELY BARGAINED EMPLOYEES
EIN: 13-1989550
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1995
<CAPTION>
Long-Term
Aggressive MCI Common Equity Fixed
Equity Stock Index Income Participant Total
Fund Fund Fund Fund Loans Funds
---------- ---------- --------- --------- --------- ---------
Assets
- ------
<S> <C> <C> <C> <C> <C> <C>
Non-interest bearing
cash $ 50,460 $ 1,167 $ 27,550 $ 0 $ 0 $ 79,177
Employer contribution
receivable 0 40 0 0 0 40
---------- ---------- --------- --------- --------- ---------
Total 50,460 1,207 27,550 0 0 79,217
---------- ---------- --------- --------- --------- ---------
General investments,
at fair value:
Loans to participants 0 0 0 0 390,896 390,896
Value of interest in
collective investment
funds of trustee 806 43,792 0 1,297 0 45,895
Value of interest
in registered
investment company 2,199,148* 0 1,553,277* 1,764,745* 0 5,517,170
General investments,
at contract value:
Value of guaranteed
investment contracts 0 0 0 2,883,276* 0 2,883,276
---------- ---------- --------- --------- --------- ---------
Total general investments 2,199,954 43,792 1,553,277 4,649,318 390,896 8,837,237
Employer related investments
Employer securities 0 4,168,087* 0 0 0 4,168,087
---------- ---------- --------- --------- --------- ---------
Total Assets 2,250,414 4,213,086 1,580,827 4,649,318 390,896 13,084,541
---------- ---------- --------- --------- --------- -----------
Liabilities
- -----------
Accounts payable 0 0 0 (3,392) 0 (3,392)
---------- ---------- --------- --------- --------- -----------
Net assets available for
benefits $2,250,414 $4,213,086 $1,580,827 $4,645,926 $ 390,896 $13,081,149
========== ========== ========== ========== ========= ==========
<FN>
* Investment represents 5% or more of the Plan's net assets.
</FN>
</TABLE>
Page 10
<PAGE>
NOTE 3 - Continued
<TABLE>
WESTERN UNION INTERNATIONAL, INC.
401(k) PLAN FOR COLLECTIVELY BARGAINED EMPLOYEES
EIN: 13-1989550
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1994
<CAPTION>
Long-Term
Aggressive MCI Common Equity Fixed
Equity Stock Index Income Participant Total
Fund Fund Fund Fund Loans Funds
---------- ---------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Non-interest bearing
cash $ 273 $ 99 $ 635 $ 15,778 $ 0 $ 16,785
Employer contribution
receivable 0 46 0 0 0 46
---------- ---------- --------- --------- --------- ---------
Total 273 145 635 15,778 0 16,831
---------- ---------- --------- --------- --------- ---------
General investments,
at fair value:
Loans to participants 0 0 0 0 342,151 342,151
Value of interest in
collective investment
funds of trustee 7,000 29,129 4,364 6,007 0 46,500
Value of interest
in registered
investment company 1,217,730* 0 958,837* 934,054* 0 3,110,621
General investments,
at contract value:
Value of guaranteed
investment contracts 0 0 0 2,886,044* 0 2,886,044
---------- ---------- --------- --------- --------- ---------
Total general investments 1,224,730 29,129 963,201 3,826,105 342,151 6,385,316
Employer related investments
Employer securities 0 2,439,134* 0 0 0 2,439,134
---------- ---------- --------- --------- --------- ---------
Net assets available for
benefits $1,225,003 $2,468,408 $ 963,836 $3,841,883 $ 342,151 $8,841,281
========== ========== ========= ========== ========= ==========
<FN>
* Investment represents 5% or more of the Plan's net assets.
</FN>
</TABLE>
Page 11
<PAGE>
NOTE 3 - Continued
<TABLE>
WESTERN UNION INTERNATIONAL, INC.
401(k) PLAN FOR COLLECTIVELY BARGAINED EMPLOYEES
EIN: 13-1989550
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED: DECEMBER 31, 1995
<CAPTION>
Long-Term
Aggressive MCI Common Equity Fixed
Equity Stock Index Income Participant Total
Fund Fund Fund Fund Loans Funds
---------- ---------- --------- --------- --------- ---------
ADDITIONS
- ---------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Non-cash employer $ 0 $ 504,446 $ 0 $ 0 $ 0 $ 504,446
Participants 432,232 269,860 238,867 645,861 0 1,586,820
Rollovers 30,000 0 0 143,336 0 173,336
---------- ---------- --------- --------- --------- ---------
Total contributions 462,232 774,306 238,867 789,197 0 2,264,602
---------- ---------- --------- --------- --------- ---------
Earnings on investments:
Interest on guaranteed
investment contracts 0 0 0 296,207 0 296,207
Interest on participant loans 0 0 0 0 25,748 25,748
Dividends on common stock 0 7,660 0 0 0 7,660
Unrealized appreciation of assets 0 1,059,467 0 0 0 1,059,467
Net investment gain from collective
investment funds of trustee 116 2,333 4,695 0 0 7,144
Net investment gain from registered
investment company 568,779 0 380,440 0 0 949,219
---------- ---------- --------- --------- --------- ---------
Total earnings on investments 568,895 1,069,460 385,135 296,207 25,748 2,345,445
---------- ---------- --------- --------- --------- ---------
Total additions 1,031,127 1,843,766 624,002 1,085,404 25,748 4,610,047
DEDUCTIONS
- ----------
Participant benefit payments ( 29,470) ( 74,946) ( 21,261) (115,664) 0 (241,341)
---------- ---------- --------- --------- --------- ---------
Net increase 1,001,657 1,768,820 602,741 969,740 25,748 4,368,706
Transfers to MCI Communications
Corporation Retirement Savings Plan (31,562) (39,706) ( 7,922) ( 40,298) ( 9,350) (128,838)
Interfund transfers to (from) 64,453 27,138 31,746 (123,337) 0 0
Net loans ( 9,137) ( 11,574) ( 9,574) ( 2,062) 32,347 0
Net assets available for benefits, at
beginning of year 1,225,003 2,468,408 963,836 3,841,883 342,151 8,841,281
---------- ---------- --------- --------- --------- ---------
Net assets available for benefits, at
end of year $2,250,414 $4,213,086 $1,580,827 $4,645,926 $ 390,896 $13,081,149
========== ========== ========== ========== ========= ==========
</TABLE>
Page 12
<PAGE>
NOTE 3 - Continued
<TABLE>
WESTERN UNION INTERNATIONAL, INC.
401(k) PLAN FOR COLLECTIVELY BARGAINED EMPLOYEES
EIN: 13-1989550
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
FOR THE YEAR ENDED: DECEMBER 31, 1994
<CAPTION>
Long-Term
Aggressive MCI Common Equity Fixed
Equity Stock Index Income Participant Total
Fund Fund Fund Fund Loans Funds
---------- ---------- --------- --------- --------- ---------
ADDITIONS
- ---------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Non-cash employer $ 0 $ 547,589 $ 0 $ 0 $ 0 $ 547,589
Participants 346,455 116,288 231,497 639,824 0 1,334,064
Rollovers 0 0 0 128,241 0 128,241
---------- ---------- --------- --------- --------- ---------
Total contributions 346,455 663,877 231,497 768,065 0 2,009,894
---------- ---------- --------- --------- --------- ---------
Earnings on investments:
Interest on guaranteed
investment contracts 0 0 0 244,282 0 244,282
Interest on participant loans 0 0 0 0 15,986 15,986
Dividends on common stock 0 6,160 0 0 0 6,160
Unrealized (depreciation) of assets 0 (1,182,737) 0 0 0 (1,182,737)
Net investment gain from collective
investment funds of trustee 34 904 13,154 0 0 14,092
Net investment gain from registered
investment company 12,909 0 0 0 0 12,909
---------- ---------- --------- --------- --------- ---------
Total earnings (losses) on investments 12,943 (1,175,673) 13,154 244,282 15,986 (889,308)
---------- ---------- --------- --------- --------- ---------
Total additions (losses) 359,398 (511,796) 244,651 1,012,347 15,986 1,120,586
DEDUCTIONS
- ----------
Participant benefit payments ( 13,724) ( 49,211) ( 3,291) ( 57,003) 0 (123,229)
---------- ---------- --------- --------- --------- ---------
Net increase (decrease) 345,674 (561,007) 241,360 955,344 15,986 997,357
Transfers to MCI Communications
Corporation Retirement Savings Plan (8,763) (52,239) ( 10,329) ( 36,511) ( 3,279) (111,121)
Interfund transfers (from)to ( 36,409) 23,161 ( 55,582) 68,830 0 0
Net loans (29,461) ( 17,609) (38,466) ( 66,497) 152,033 0
Net assets available for benefits, at
beginning of year 953,962 3,076,102 826,853 2,920,717 177,411 7,955,045
---------- ---------- --------- --------- --------- ---------
Net assets available for benefits, at
end of year $1,225,003 $2,468,408 $ 963,836 $3,841,883 $ 342,151 $8,841,281
========== ========== ========= ========== ========= ==========
</TABLE>
Page 13
<PAGE>
NOTE 4 - PARTICIPANTS' ACCOUNTS
As of December 31, 1995 and 1994, the Plan held 159,544 and 132,742 shares of
MCI Communications Corporation Common Stock at a fair market value of
$4,168,087 and $2,439,134, respectively. Of these shares, 22,163 and 21,870
were contributed by the Company during the Plan years ended December 31, 1995
and 1994, respectively, as the Company's matching contribution. During the Plan
years ended December 31, 1995 and 1994, 4,045 and 4,340 shares, respectively,
of MCI Communications Corporation Common Stock were distributed to
participants. As of December 31, 1995 and 1994, the vested amount for
terminated participants was $571,858 and $541,037, respectively, which includes
7,230 and 6,614 shares, respectively, of MCI Communications Corporation Common
Stock at fair market values of $188,884 and $121,532 respectively. Net assets
include the account balances of participants who have terminated from the
Company and have not received a distribution as of year end.
NOTE 5 - FEDERAL INCOME TAX STATUS
The Plan Administrator has received a favorable determination letter, dated
September 3, 1992, from the Internal Revenue Service covering the Plan as
amended through February 1, 1990 stating that the Plan, as designed is a
qualified plan in accordance with section 401(a) of the Internal Revenue Code
("Code"), and its corresponding trust is exempt from taxation under section
501(a) of the Code. The Plan has since been amended; however, the Plan
Administrator believes the Plan is being operated as designed and therefore
maintains its tax-qualified status.
NOTE 6 - PARTICIPANTS' LOANS
Effective April 1, 1993, a loan feature was added to the Plan which allows
employees to borrow up to 50% of their vested balance from their Plan accounts
(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. Loan proceeds are disbursed pro rata from each of the
borrowers' investment funds, and are repaid through weekly payroll deductions.
Loan repayments of principal and interest are invested based on the borrowers'
current investment election. Interest rates for new loans are determined
quarterly by the Plan Administrative Committee, based on the prime rate as
published on the first day of each quarter in THE WALL STREET
Page 14
<PAGE>
JOURNAL, plus one percentage point. The interest rate is fixed for the term of
the loan. Loans can be repaid in full, with one month's notice. During the Plan
years ended December 31, 1995 and 1994, $157,780 and $232,075 in loans were
disbursed and principal repayments of $99,684 and $64,056, respectively, were
made.
NOTE 7 - SUBSEQUENT EVENTS
Effective June 1, 1996, Putnam Investments, Inc. will assume the role of
recordkeeper, replacing Buck Consultants, Inc. as recordkeeper. The Plan will
also increase the investment options to seven funds. Daily valuations, weekly
loans and distributions, and monthly loan rate changes will be implemented.
Additionally, once per plan year, fully-vested participants will be allowed to
diversify their company matching contribution as of the previous plan year end.
Page 15
<PAGE>
<TABLE>
SCHEDULE I
WESTERN UNION INTERNATIONAL, INC.
401(k) PLAN FOR COLLECTIVELY BARGAINED EMPLOYEES
EIN: 13-1989550
ITEM 27a SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1995
<CAPTION>
NUMBER CURRENT
OF VALUE AT
SHARES COST 12/31/95
------- ------ ----------
DESCRIPTION/ISSUER
- -------------------
<S> <C> <C> <C>
LOANS TO PARTICIPANTS
Participants loan accounts (rates range 7%-10%) $ 0 $ 390,896
-----------
INTEREST IN COLLECTIVE INVESTMENT
FUNDS OF TRUSTEE
* Mellon Bank Temporary
Investment Fund 45,895 45,895
-----------
Total interest in collective
investment funds of trustee 45,895
-----------
INTEREST IN REGISTERED INVESTMENT
COMPANY
* Putnam Long-Term Fixed Income Fund 1,764,745 1,764,745 1,764,745
* Putnam Voyager Fund 144,206 1,618,194 2,199,149
* Dreyfus Funds Inc. S&P
500 Stock Index 116,793 1,228,537 1,553,276
-----------
Total interests in registered investment companies 5,517,170
-----------
GUARANTEED INVESTMENT CONTRACTS**
John Hancock Mutual Life
Insurance (8.05% matures 6/30/99) 875,939 875,939
Allstate Life Insurance (5.90% matures 7/1/98) 694,977 694,977
Metropolitan Life Insurance (8.96% matures 6/30/96) 835,784 835,784
Principal Mutual Life Insurance (9.10% matures 12/31/96) 476,576 476,576
-----------
Total guaranteed investment contracts 2,883,276
-----------
COMMON STOCK
* MCI Communications Corporation 159,544 3,091,681 4,168,087
-----------
TOTAL INVESTMENTS $13,005,324
===========
<FN>
* Denotes a party-in-interest
** Current value is considered to be contract value
</FN>
</TABLE>
Page 16
<PAGE>
SCHEDULE II
WESTERN UNION INTERNATIONAL, INC.
401(k) PLAN FOR COLLECTIVELY BARGAINED EMPLOYEES
EIN: 13-1989550
ITEM 27d SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
Transaction or series of transactions exceeding 5% of beginning fair
value of plan assets for the plan year January 1, 1995 to December 31,
1995 are considered reportable transactions. Fair value at January 1,
1995 is $8,841,281. Five percent (5%) of fair value is $442,064.
<TABLE>
<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 Long-Term $1,035,303 $1,035,303 $1,035,303 $ 0
Fixed Income (53 purchases)
*Mellon Bank $611,285 $640,785 $611,285 $611,285 $ 0
Temporary (301 purchases)(136 sales) $640,785 $640,785 $ 0
Investment Fund
Aggressive $454,419 $41,779 $454,419 $454,419 $ 0
Equity Fund (54 purchases) (6 sales) $ 32,436 $ 41,779 $9,343
<FN>
* Denotes a party-in-interest
</FN>
</TABLE>
Page 17
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Plan sponsor of the Western Union International, Inc. 401(k) Plan
for Collectively Bargained Employees has duly caused this annual report
to be signed on its behalf by the undersigned, thereunto duly
authorized.
WESTERN UNION INTERNATIONAL, INC.
401(k) PLAN FOR COLLECTIVELY
BARGAINED EMPLOYEES
Date: June 28, 1996
By Frank R. Conrad
Frank R. Conrad
Controller
Western Union International, Inc.
Page 18
Exhibit 23
WESTERN UNION INTERNATIONAL, INC.
401(k) PLAN FOR COLLECTIVELY BARGAINED EMPLOYEES
EIN: 13-1989550
CONSENT OF INDEPENDENT ACCOUNTANTS
-----------------------------------
We hereby consent to the incorporation by reference in the Prospectus
constituting part of the Registration Statement on Form S-8 (No.
33-35339) 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 19
Exhibit 99
DOL FILING CONFIRMATION
I certify that the Plan Administrator of the Western Union
International, Inc. 401(k) Plan for Collectively Bargained Employees
has received a Statement of Assets and Liabilities and also that this
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 25-6078093-980
WESTERN UNION INTERNATIONAL, INC.
401(k) PLAN FOR COLLECTIVELY
BARGAINED EMPLOYEES
Date: June 28, 1996
By Frank R. Conrad
Frank R. Conrad
Controller
Western Union International, Inc.
Page 20
