<PAGE>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 11-K
[ X ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1994
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
Commission file number 1-8841
FPL Group Employee Thrift Plan
(Full title of the plan)
FPL GROUP, INC.
(Name of issuer of the securities held pursuant to the plan)
700 Universe Boulevard
Juno Beach, Florida 33408
(Address of principal executive offices)
(Zip Code)<PAGE>
INDEPENDENT AUDITORS' REPORT
EMPLOYEE BENEFITS COMMITTEE OF THE BOARD OF DIRECTORS
OF FPL GROUP, INC.:
We have audited the statements of financial condition of the FPL Group
Employee Thrift Plan (the "Plan") as of December 31, 1994 and 1993,
and the related statement of income and changes in net assets for the
year ended December 31, 1994. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial condition of the Plan at December 31, 1994 and
1993 and its income and changes in net assets for the year ended
December 31, 1994 in conformity with generally accepted accounting
principles.
Our audits were conducted for the purpose of forming an opinion on the
basic financial statements taken as a whole. The supplemental
schedules of (1) assets held for investment as of December 31, 1994,
and (2) transactions in excess of five percent of the current value of plan
assets for the year ended December 31, 1994, are presented for the
purpose of additional analysis and are not a required part of the basic
financial statements, but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974.
These schedules are the responsibility of the Plan's management. Such
schedules have been subjected to the auditing procedures applied in our
audit of the basic 1994 financial statements and, in our opinion, are fairly
stated in all material respects when considered in relation to the basic
financial statements taken as a whole.
DELOITTE & TOUCHE LLP
Miami, Florida
June 26, 1995<PAGE>
FPL GROUP EMPLOYEE THRIFT PLAN
STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
December 31,
1994 1993
<S> <C> <C>
ASSETS
Total noninterest-bearing cash ...................................................... - $ 274,725
Receivables:
Employer contributions ............................................................ - 1,329,930
Income ............................................................................ $ 2,370 993
Total receivables ............................................................... 2,370 1,330,923
General investments:
Interest-bearing cash ............................................................. 3,583,383 3,829,749
Loans to participants - other ..................................................... 21,772,129 16,664,049
Value of interest in master trusts ................................................ 216,916,732 323,618,730
Value of interest in registered investment companies .............................. 141,513,447 -
Total general investments ....................................................... 383,785,691 344,112,528
Employer securities:
Employer securities held by the Plan .............................................. 260,607,706 345,703,457
Leveraged ESOP employer securities (allocated to the Plan)......................... 255,711,120 306,413,193
Total employer securities ....................................................... 516,318,826 652,116,650
Total assets ........................................................................ 900,106,887 997,834,826
LIABILITIES
Operating payables .................................................................. 857,006 1,021,414
Acquisition indebtedness (Leveraged ESOP loan allocated to the Plan) ................ 248,318,590 256,487,256
Total liabilities ................................................................... 249,175,596 257,508,670
NET ASSETS .......................................................................... $650,931,291 $740,326,156
</TABLE>
The accompanying Notes to Financial Statements are an integral part of
these statements.<PAGE>
FPL GROUP EMPLOYEE THRIFT PLAN
STATEMENT OF INCOME AND CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended December 31, 1994
<S> <C> <C>
INCOME
Contributions:
Received from employer ........................................................... $ 3,972,069
Received from participants ....................................................... 30,880,474
Noncash contributions (from employer) ............................................ 10,177,490
Total contributions ............................................................ $ 45,030,033
Earnings on investments:
Interest:
Interest-bearing cash .......................................................... 97,268
Other loans (participant loans) ................................................ 1,559,275
Total interest ............................................................... 1,656,543
Common stock dividends ........................................................... 13,809,465
Net loss on sale of assets:
Aggregate proceeds ............................................................. 89,684,288
Aggregate carrying amount ...................................................... 101,195,579
Net loss on sale of assets ................................................... (11,511,291)
Unrealized depreciation of assets ................................................ (21,032,468)
Net investment gain from master trusts ........................................... 9,181,874
Net investment loss from registered investment companies ......................... (4,517,077)
Total income ....................................................................... 32,617,079
EXPENSES
Benefit payment and payments to provide benefits:
Directly to participants or beneficiaries ........................................ 73,177,368
Total payments to provide benefits ............................................. 73,177,368
Administrative expenses:
Recordkeeping fees ............................................................... 114,926
Total administrative expenses .................................................. 114,926
Total expenses ..................................................................... 73,292,294
NET LOSS ........................................................................... (40,675,215)
TRANSFERS
Transfers from the Plan ............................................................ (6,348,952)
Effect of current year Leveraged ESOP activity ..................................... (42,370,698)
Total transfers from the Plan ...................................................... (48,719,650)
NET ASSETS AT DECEMBER 31, 1993 .................................................... 740,326,156
NET ASSETS AT DECEMBER 31, 1994 .................................................... $650,931,291
</TABLE>
The accompanying Notes to Financial Statements are an integral part of
these statements.<PAGE>
FPL GROUP EMPLOYEE THRIFT PLAN
NOTES TO FINANCIAL STATEMENTS
For the year ended December 31, 1994
1. Description of the Plan and Significant Accounting Policies
The Plan
The following description of the FPL Group Employee Thrift Plan (Plan)
provides only general information. Participating employees (Members)
should refer to the Summary Plan Description in their employee
handbook for a more complete description of the Plan. Effective
January 1, 1994, Fidelity Management Trust Company (Trustee)
replaced Mellon Bank, N.A. as administrator of the trust established
under the Plan (Trust).
Participation in the Plan is voluntary. Employees (other than certain
union employees) are eligible to participate in the Plan on the first day of
the month coincident with the completion of six continuous full months of
service with FPL Group, Inc. (FPL Group or Company) or any of its
subsidiaries or on the first day of any month thereafter. The Plan
includes a cash or deferred compensation arrangement (Tax Saver
Option) permitted by Section 401(k) of the Internal Revenue Code of
1986, as amended (Code). The Tax Saver Option permits a Member to
elect to defer federal income taxes on all or a portion of his contributions
(Tax Saver Contributions) until they are distributed from the Plan. Tax
Saver Contributions were limited in 1994 to a maximum of $9,240 per
Member and may be increased or decreased in future years for cost-of-
living adjustments.
The Plan also includes leveraged employee stock ownership plan
(Leveraged ESOP) provisions. The Leveraged ESOP is a stock bonus
plan within the meaning of Treasury Regulation Section 1.401-1(b)(1)(iii)
that is qualified under Section 401(a) of the Code and is designed to
invest primarily in common stock of FPL Group, Inc. (Common Stock).
The Trust purchased Common Stock from FPL Group using the
proceeds of a loan (Acquisition Indebtedness) from FPL Group Capital
Inc (FPL Group Capital), a subsidiary of FPL Group (see Note 3). The
Common Stock acquired by the Trust is initially held in a separate
account (ESOP Account). As the Acquisition Indebtedness (including
interest) is repaid, each Member's account is allocated its share of
Common Stock released from the ESOP Account.
Contributions, Loans, Withdrawals and Transfers to (from) the Plan
The Plan provides for basic contributions by eligible employees in whole
percentages from 1% to 6% of their base compensation (Earnings).
Such contributions are matched 50% by the Company with shares of
Common Stock equal in value to 50% of a Member's basic after-tax and
basic Tax Saver Contributions plus an additional 50% on the first three
percent of a Member's Earnings contributed as a basic Tax Saver
Contribution. The Plan also provides for supplemental contributions by
Members to be made in whole percentages from 1% to 10% of their
Earnings, which are not matched by the Company.
The value of a Member's contributions (including all income, gains and
losses) is at all times 100% vested. Company contributions vest at a
rate of 20% each year and are fully vested upon a Member attaining five
years of service as a Member of the Plan. An employee may also
receive vesting credit for prior years of service as a member of the
Employee Thrift and Retirement Savings Plan for the Bargaining Unit
Employees of Florida Power & Light Company (FPL Bargaining Plan).
The Plan's investment options during the year were expanded to include
eleven investment choices: eight core investment options and three
investment strategy options. The core investment options include
various mutual funds, a separately managed portfolio of short- and
long-term investment contracts and Common Stock. The strategy
options combine portions of the individual core investment options
available through the Plan providing various combinations of stocks and
fixed income investments.
The Plan allows Members, at any time, to change their contribution
percentage, to change their investment option allocation for future
contributions or to transfer their account balance attributable to Member
contributions from one investment option to another. At year end, the
number of Members contributing to the Plan was 6,783. Company
contributions are primarily made from Common Stock shares released
from the ESOP Account. Forfeitures of non-vested Company
contributions due to termination of Plan participation are used to reduce
the amount of future Company contributions to the Plan. A Member who
has attained at least the age of fifty-five and completed five years of
service while a Member will be permitted a one time election to transfer
the total Company contributions made to his or her account and any
earnings thereon to one or more of the other investment options. Any
future Company contributions will continue to be invested in Common
Stock.
A Member may borrow from his or her Plan accounts during their
employment under certain conditions. At December 31, 1994, the loan
interest rate was 7.5%.
Withdrawals by Members from certain of their accounts during their
employment are permitted with certain penalties and restrictions. The
penalties limit a Member's participation in the Plan for varying periods
following a withdrawal.
Transfers to (from) the Plan generally represent net transfers between
the Plan and the FPL Bargaining Plan. The transfers arise as a result of
members relocating between affiliated entities participating in the plans.
Basis of Accounting
The financial statements of the Plan are prepared under the accrual
basis of accounting. Investment income and interest income on loans to
Members is recognized when earned. Contributions by Members and
Company contributions are accrued on the basis of amounts withheld
through payroll deductions. Distributions to Members are recorded when
paid. Assets of the Plan are stated at market value, except loans to
Members which are stated at cost and insurance and financial institution
contracts which are stated at contract value, all of which approximates
market value. Market value is determined using the closing market price
or the last recorded bid price.
Investments
Purchases and sales of investment securities are recorded on the trade
date. Gains or losses on sales of investment securities are determined
using the carrying amount of the securities. The carrying amounts of
securities held in Member accounts are adjusted daily; securities held in
the ESOP Account (see Note 2) are adjusted annually. Unrealized
appreciation or depreciation is recorded to recognize changes in market
value.
2. Employee Stock Ownership Plan Account Allocation
The assets, liabilities and net income of the ESOP Account are not
considered plan assets but are for the joint benefit of the Plan and the
FPL Bargaining Plan. The ESOP Account is allocated for financial
reporting purposes based on each plan's relative net assets. The Plan's
allocation of Common Stock held in the ESOP Account (employer
securities), Acquisition Indebtedness and interest payable have been
reflected in the Statements of Financial Condition, but are not available
for, or the obligation of, Plan Members. The employer securities will be
released from the ESOP Account and distributed to Members' accounts
in satisfaction of part or all of the Company's matching contribution
obligation under the Plan as the Acquisition Indebtedness is repaid
(estimated to occur over the next fifteen years). ESOP shares allocated
to date are classified as employer securities held by the Plan on the
Statements of Financial Condition. The Acquisition Indebtedness will be
repaid from dividends on the shares acquired by the ESOP Account, as
well as from cash contributions from FPL Group. The net effect of a
change in the allocation percentage from year to year is reported as a
transfer to or from the Plan. The value of the shares distributed to
Member accounts is not affected by these allocations.
Condensed financial statements of the ESOP Account are presented
below, indicating the allocations made to each plan. The effect of
current year Leveraged ESOP activity on net assets is included in
transfers to the plan in the financial statements of each plan.
Distributions of shares to the plans are presented as noncash
contributions in the financial statements of each plan.
<TABLE>
<CAPTION>
The FPL
Total ESOP Bargaining
Account The Plan Plan
<S> <C> <C> <C>
Allocation percentage ............................................. 100% 70% 30%
Accrued interest .................................................. $ 3,370 $ 2,370 $ 1,000
Employer securities ............................................... 363,742,703 255,711,120 108,031,583
Total assets .................................................... 363,746,073 255,713,490 108,032,583
Acquisition indebtedness .......................................... 353,227,013 248,318,590 104,908,423
Interest payable .................................................. 1,219,069 857,006 362,063
Total liabilities ............................................... 354,446,082 249,175,596 105,270,486
Net assets - end .................................................. $ 9,299,991 $ 6,537,894 $ 2,762,097
Contributions received from employer .............................. $ 15,742,915
Interest income ................................................... 8,766
Dividends ......................................................... 19,890,457
Net loss on sale of assets (1) .................................... (3,455,010)
Unrealized depreciation of assets ................................. (41,478,488)
Total income .................................................... (9,291,360)
Interest expense .................................................. 34,477,086
Net loss .......................................................... (43,768,446) $(30,769,218) $(12,999,228)
Distribution of shares to plans ................................... (15,001,977) (10,177,490) (4,824,487)
Transfers to (from) plan .......................................... - (1,423,990) 1,423,990
Effect of current year Leveraged ESOP activity on net assets ...... (58,770,423) (42,370,698) (16,399,725)
Net assets - beginning ............................................ 68,070,414 48,908,592 19,161,822
Net assets - end .................................................. $ 9,299,991 $ 6,537,894 $ 2,762,097
(1) Primarily represents the decrease in market value since the beginning of the year of shares that were held by the ESOP
Account and distributed to the plans during the current year.
</TABLE>
3. Acquisition Indebtedness
In December 1990, the Trust borrowed $360 million from FPL Group
Capital to purchase approximately 12.4 million shares of Common
Stock. The unallocated shares of Common Stock acquired with the
proceeds of the Acquisition Indebtedness are collateral for the
Acquisition Indebtedness. As principal payments are made, a
percentage of Common Stock is allocated to each Member's account and
released as collateral. During 1994, 544,385 shares of Common Stock
were released as collateral for the Acquisition Indebtedness. The
scheduled principal repayments of the Acquisition Indebtedness for
the next five years and thereafter are as follows: 1995 -
$4,190,000; 1996 - $5,532,000; 1997 - $7,032,000; 1998 - $8,705,000;
1999 - $10,568,000 and thereafter - $317,200,000. The Acquisition
Indebtedness matures in 2010, bears interest at a fixed rate of 9.69%
per year and is to be repaid using dividends received on Common Stock
held by the ESOP Account and ESOP shares distributed to Member
accounts, along with cash contributions from FPL Group. In 1994,
such dividends received totaled approximately $22,978,000 and cash
contributions from FPL Group totaled approximately $15,743,000. See
Note 2 for information on the Plan's allocation percentage of the
Acquisition Indebtedness.
4. Parties-In-Interest Transactions
Company contributions are primarily made in Common Stock released
from the ESOP Account or in cash, which is used by the Trustee to
purchase Common Stock. Such amounts are reported as noncash
contributions (from employer) and contributions received from
employer, respectively.
All dividends received by the Plan were earned on Common Stock.
Dividends on shares held in the ESOP Account were used to repay the
Acquisition Indebtedness (see Note 3). Certain dividends on shares
held in Members' accounts were reinvested in Common Stock for the
benefit of its Members pursuant to FPL Group's Dividend Reinvestment
and Common Share Purchase Plan in which the Trustee participates.
5. Statement of Financial Condition Information by Investment Fund
Option
Information about the Statements of Financial Condition by investment
fund option is as follows:
<TABLE>
<CAPTION>
December 31,
1994 1993
<S> <C> <C>
Interest-bearing cash:
Fidelity Retirement Government Money Market Portfolio .............................. $ 3,583,383 -
EB Temporary Investment Fund ....................................................... - $ 3,829,749
$ 3,583,383 $ 3,829,749
Value of interest in Master Trusts:
Conservative Investment Strategy ................................................... $ 15,992,562 -
Moderate Growth Investment Strategy ................................................ 35,008,913 -
Long-term Growth Investment Strategy ............................................... 28,538,650 -
Short-term liquid investments maintained in FPL Company Stock Fund ................. 3,560,577 -
Managed Income Portfolio (previously Fund A) ....................................... 133,816,030 -
Fund A ............................................................................. - $234,321,759
Fund B ............................................................................. - 89,296,971
$216,916,732 $323,618,730
Value of interest in registered investment companies:
Fidelity U.S. Bond Index Portfolio ................................................. $ 13,397,698 -
Fidelity U.S. Equity Index Portfolio (previously Fund B) ........................... 40,680,458 -
Fidelity Magellan Fund ............................................................. 46,188,570 -
Fidelity OTC Portfolio ............................................................. 21,069,817 -
Fidelity Overseas Fund ............................................................. 20,176,904 -
$141,513,447 -
FPL Company Stock Fund ............................................................... $260,607,706 $345,703,457
</TABLE>
6. Statement of Income and Changes in Net Assets Information by
Investment Fund Option
Information about the Statement of Income and Changes in Net Assets
by investment fund option is as follows:
<TABLE>
<CAPTION>
Fidelity
Retirement Moderate Long-term
Government Conservative Growth Growth
Money Mkt. Investment Investment Investment
Portfolio Strategy Strategy Strategy
<S> <C> <C> <C> <C>
INCOME
Contributions ............................................ $ 138,357 $ 550,994 $ 2,633,101 $ 3,496,669
Interest and dividends ................................... 102,793 18,671 112,993 171,000
Net investment gain (loss) from master trusts ............ - 197,498 (480,451) (672,251)
Net investment gain (loss) from registered
investment companies .................................... - - - -
Total income ........................................... 241,150 767,163 2,265,643 2,995,418
EXPENSES
Benefit payment and payments to provide benefits ......... 613,226 1,899,571 1,342,511 1,060,834
Administrative expenses .................................. 2,551 2,148 5,616 4,630
Total expenses ......................................... 615,777 1,901,719 1,348,127 1,065,464
NET INCOME (LOSS) ........................................ (374,627) (1,134,556) 917,516 1,929,954
TRANSFERS
Net transfers to (from) the Plan ......................... 354,352 (56,639) (56,499) 6,444
Net exchanges between investment funds ................... 3,611,066 17,473,630 34,635,476 26,987,799
Net participant loan activity ............................ (7,408) (289,873) (487,580) (385,547)
Total transfers ........................................ 3,958,010 17,127,118 34,091,397 26,608,696
NET ASSETS AT DECEMBER 31, 1993 ......................... 0 0 0 0
NET ASSETS AT DECEMBER 31, 1994 ......................... $ 3,583,383 $15,992,562 $35,008,913 $28,538,650
/TABLE
<PAGE>
<TABLE>
<CAPTION>
Fidelity Fidelity
Managed U.S. Bond U.S. Equity Fidelity
Income Index Index Magellan
Portfolio Portfolio Portfolio Fund
<S> <C> <C> <C> <C>
INCOME
Contributions ......................................... $ 4,319,521 $ 1,219,779 $ 3,581,646 $ 5,609,839
Interest and dividends ................................ 220,015 58,186 199,602 263,276
Net investment gain (loss) from master trusts ......... 10,137,078 - - -
Net investment gain (loss) from registered
investment companies ................................ - (177,311) 967,883 (3,379,189)
Total income ...................................... 14,676,614 1,100,654 4,749,131 2,493,926
EXPENSES
Benefit payment and payments to provide benefits ...... 29,410,140 556,115 6,731,939 1,529,996
Administrative expenses ............................... 11,912 21,503 32,677 19,391
Total expenses ...................................... 29,422,052 577,618 6,764,616 1,549,387
NET INCOME (LOSS) ..................................... (14,745,438) 523,036 (2,015,485) 944,539
TRANSFERS
Net transfers to (from) the Plan ...................... 929,819 (42,190) (1,340,973) 50,019
Net exchanges between investment funds ................ (85,583,779) 13,138,340 (44,650,676) 45,758,747
Net participant loan activity ......................... (1,106,331) (221,488) (609,379) (564,735)
Total transfers ..................................... (85,760,291) 12,874,662 (46,601,028) 45,244,031
NET ASSETS AT DECEMBER 31, 1993 ....................... 234,321,759 0 89,296,971 0
NET ASSETS AT DECEMBER 31, 1994 ....................... $133,816,030 $13,397,698 $ 40,680,458 $46,188,570
</TABLE>
<TABLE>
<CAPTION>
FPL
Fidelity Fidelity Company
OTC Overseas Stock
Portfolio Fund Fund
<S> <C> <C> <C>
INCOME
Contributions ........................................................ $ 2,774,365 $ 2,725,654 $ 17,980,108
Interest and dividends ............................................... 127,897 126,805 14,064,770
Net loss on sale of assets ........................................... - - (11,511,291)
Unrealized depreciation of assets .................................... - - (21,032,468)
Net investment gain (loss) from master trusts ........................ - - -
Net investment gain (loss) from registered investment companies ...... (1,395,962) (532,498) -
Total income ....................................................... 1,506,300 2,319,961 (498,881)
EXPENSES
Benefit payment and payments to provide benefits ..................... 675,363 687,777 27,629,160
Administrative expenses .............................................. 812 1,128 12,558
Total expenses ..................................................... 676,175 688,905 27,641,718
NET INCOME (LOSS) .................................................... 830,125 1,631,056 (28,140,599)
TRANSFERS
Net transfers to (from) the Plan ..................................... 22,583 2,614 (4,817,022)
Net exchanges between investment funds ............................... 20,400,178 18,803,418 (50,574,199)
Net participant loan activity ........................................ (183,069) (260,184) (1,828,360)
Total transfers .................................................... 20,239,692 18,545,848 (57,219,581)
NET ASSETS AT DECEMBER 31, 1993 ...................................... 0 0 349,528,463
NET ASSETS AT DECEMBER 31, 1994 ...................................... $21,069,817 $20,176,904 $264,168,283
</TABLE>
7. Reconciliation of Financial Statements to Form 5500
Generally accepted accounting principles for employee benefit plans
require benefit payments to be recorded when paid. Benefit payments
as reported on Form 5500 are recorded when processed and approved
for payment.
The following is a reconciliation of benefits paid to participants per the
financial statements to the Form 5500:
<TABLE>
<CAPTION>
Year Ended
December 31,
1994
<S> <C>
Benefits paid to participants per the financial statements ......................................... $ 73,177,368
Subtract: Amounts allocated to withdrawing participants at December 31, 1993 ...................... (37,883,332)
Benefits paid to participants per the Form 5500 .................................................... $ 35,294,036
</TABLE>
8. Income Taxes
In January 1989, FPL received from the Internal Revenue Service (IRS)
a favorable determination that the Plan, as amended and restated
effective January 1, 1988, met the requirements of Section 401 of the
Code. The IRS, in Revenue Procedure 93-6, has opened the
determination process for plans which combine 401(k) or 401(m) and
ESOP features, such as this Plan. The Company has submitted
applications in 1995 for favorable determinations from the IRS that the
Plan, both as amended and restated effective July 16, 1990, including
amendments effective January 1, 1991, and as further amended through
January 1, 1994, remains qualified under Section 401(a). If the Plan
remains qualified, the Trust established thereunder will generally be
exempt from federal income taxes under Section 501(a) of the Code;
Company contributions paid to the Trust under the Plan will be allowable
federal income tax deductions of the Company subject to the conditions
and limitations of Section 404 of the Code; and the Plan will meet the
requirements of Section 401(k) of the Code allowing Tax Saver
Contributions to be exempt from federal income tax at the time such
contributions are made, provided that in operation the Plan and Trust
meet the applicable provisions of the Code. In addition, FPL Group will
be able to claim an income tax deduction for dividends used to repay the
Acquisition Indebtedness.
Company contributions to the Plan on a Member's behalf, Member's Tax
Saver Contributions, and the earnings thereon generally are not taxable
to the Member until such Company contributions, Tax Saver
Contributions, and earnings from investments are distributed or
withdrawn. A loan from a Member's account generally will not represent
a taxable distribution if the loan is repaid in a timely manner and does
not exceed certain limitations.
9. Expenses
Certain fees such as annual account maintenance and investment
management fees are primarily paid by Plan participants. FPL Group
shares a portion of the annual account maintenance fees. Trustee's
fees and expenses are paid by FPL Group (which may charge each
company under the Plan its allocated share) and, therefore, are not
reflected in the financial statements.<PAGE>
10. Master Trusts
A summary of participating interest in and financial statements for the
Master Trusts follow.
<TABLE>
<CAPTION>
Percent of
Interest in Master Trust
December 31,
1994 1993
<S> <C> <C>
MANAGED INCOME PORTFOLIO
FPL Group Employee Thrift Plan
EIN 59-0247775
PN 002 ............................................................................... 76.6% -
Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of
Florida Power & Light Company
EIN 59-0247775
PN 003 ............................................................................... 23.4% -
CONSERVATIVE INVESTMENT STRATEGY
FPL Group Employee Thrift Plan
EIN 59-0247775
PN 002 ............................................................................... 81.6% -
Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of
Florida Power & Light Company
EIN 59-0247775
PN 003 ............................................................................... 18.4% -
MODERATE GROWTH INVESTMENT STRATEGY
FPL Group Employee Thrift Plan
EIN 59-0247775
PN 002 ............................................................................... 73.0% -
Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of
Florida Power & Light Company
EIN 59-0247775
PN 003 ............................................................................... 27.0% -
LONG-TERM GROWTH INVESTMENT STRATEGY
FPL Group Employee Thrift Plan
EIN 59-0247775
PN 002 ............................................................................... 73.9% -
Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of
Florida Power & Light Company
EIN 59-0247775
PN 003 ............................................................................... 26.1% -
MASTER TRUST FUND A
FPL Group Employee Thrift Plan
EIN 59-0247775
PN 002 ............................................................................... - 77.6%
Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of
Florida Power & Light Company
EIN 59-0247775
PN 003 ............................................................................... - 22.4%
MASTER TRUST FUND B
FPL Group Employee Thrift Plan
EIN 59-0247775
PN 002 ............................................................................... - 72.7%
Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of
Florida Power & Light Company
EIN 59-0247775
PN 003 ............................................................................... - 27.3%
/TABLE
<PAGE>
MANAGED INCOME PORTFOLIO
STATEMENT OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
December 31,
1994
<S> <C>
ASSETS
General investments:
Value of unallocated insurance and financial institution contracts .............................. $174,627,459
Total assets ...................................................................................... 174,627,459
LIABILITIES ....................................................................................... -
NET ASSETS ........................................................................................ $174,627,459
</TABLE>
STATEMENT OF INCOME AND CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
1994
<S> <C> <C>
INCOME
Contributions received from participants ............................................ $ 6,799,449
Earnings on investments:
Interest .......................................................................... 13,255,525
Total income ........................................................................ 20,054,974
EXPENSES
Benefit payments to participants or beneficiaries ................................... 14,681,810
Account maintenance fees ............................................................ 20,218
Total expenses ...................................................................... 14,702,028
NET INCOME .......................................................................... 5,352,946
TRANSFERS
Transfers into fund ................................................................. 51,831,741
Transfers out of fund ............................................................... (165,298,459)
Net transfers ....................................................................... (113,466,718)
NET ASSETS AT BEGINNING OF YEAR ..................................................... 282,741,231
NET ASSETS AT END OF YEAR ........................................................... $ 174,627,459
/TABLE
<PAGE>
CONSERVATIVE INVESTMENT STRATEGY
STATEMENT OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
December 31,
1994
<S> <C>
ASSETS
Receivables:
Income .......................................................................................... $ 59,409
General investments:
Value of unallocated insurance and financial institution contracts .............................. 9,752,821
Mutual funds .................................................................................... 9,857,525
Total general investments ................................................................... 19,610,346
Total assets ...................................................................................... 19,669,755
LIABILITIES ....................................................................................... -
NET ASSETS ........................................................................................ $19,669,755
</TABLE>
STATEMENT OF INCOME AND CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
1994
<S> <C> <C>
INCOME
Contributions received from participants ............................................ $ 774,566
Earnings on investments:
Interest .......................................................................... 533,871
Dividends ......................................................................... 436,684
Net gain (loss) on sale of assets:
Aggregate proceeds .............................................................. $13,659,546
Aggregate costs ................................................................. 13,969,939 (310,393)
Unrealized depreciation of assets ................................................. (484,369)
Total income ........................................................................ 950,359
EXPENSES
Benefit payments to participants or beneficiaries ................................... 1,953,397
Account maintenance fees ............................................................ 2,862
Total expenses ...................................................................... 1,956,259
NET LOSS ............................................................................ (1,005,900)
TRANSFERS
Transfers into fund ................................................................. 24,777,928
Transfers out of fund ............................................................... (4,102,273)
Net transfers ....................................................................... 20,675,655
NET ASSETS AT BEGINNING OF YEAR ..................................................... -
NET ASSETS AT END OF YEAR ........................................................... $19,669,755
/TABLE
<PAGE>
MODERATE GROWTH INVESTMENT STRATEGY
STATEMENT OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
December 31,
1994
<S> <C>
ASSETS
Receivables:
Income .......................................................................................... $ 72,578
General investments:
Value of unallocated insurance and financial institution contracts .............................. 12,593,988
Mutual funds .................................................................................... 35,329,983
Total general investments ................................................................... 47,923,971
Total assets ...................................................................................... 47,996,549
LIABILITIES ....................................................................................... -
NET ASSETS ........................................................................................ $47,996,549
</TABLE>
STATEMENT OF INCOME AND CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
1994
<S> <C> <C>
INCOME
Contributions received from participants ............................................ $ 3,712,440
Earnings on investments:
Interest .......................................................................... 699,782
Dividends ......................................................................... 1,234,195
Net gain (loss) on sale of assets:
Aggregate proceeds .............................................................. $19,472,329
Aggregate costs ................................................................. 19,990,261 (517,932)
Unrealized depreciation of assets ................................................. (2,071,049)
Total income ........................................................................ 3,057,436
EXPENSES
Benefit payments to participants or beneficiaries ................................... 1,636,634
Account maintenance fees ............................................................ 7,822
Total expenses ...................................................................... 1,644,456
NET INCOME .......................................................................... 1,412,980
TRANSFERS
Transfers into fund ................................................................. 53,213,983
Transfers out of fund ............................................................... (6,630,414)
Net transfers ....................................................................... 46,583,569
NET ASSETS AT BEGINNING OF YEAR ..................................................... -
NET ASSETS AT END OF YEAR ........................................................... $47,996,549
/TABLE
<PAGE>
LONG-TERM GROWTH INVESTMENT STRATEGY
STATEMENT OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
December 31,
1994
<S> <C>
ASSETS
Receivables:
Income .......................................................................................... $ 24,432
General investments:
Value of unallocated insurance and financial institution contracts .............................. 4,048,004
Mutual funds .................................................................................... 34,665,513
Total general investments ................................................................... 38,713,517
Total assets ...................................................................................... 38,737,949
LIABILITIES ....................................................................................... -
NET ASSETS ........................................................................................ $38,737,949
</TABLE>
STATEMENT OF INCOME AND CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
1994
<S> <C> <C>
INCOME
Contributions received from participants ............................................ $ 4,745,194
Earnings on investments:
Interest .......................................................................... 219,246
Dividends ......................................................................... 951,118
Net gain (loss) on sale of assets:
Aggregate proceeds .............................................................. $10,955,739
Aggregate costs ................................................................. 11,331,090 (375,351)
Unrealized depreciation of assets ................................................. (1,701,324)
Total income ........................................................................ 3,838,883
EXPENSES
Benefit payments to participants or beneficiaries ................................... 1,320,940
Account maintenance fees ............................................................ 6,832
Total expenses ...................................................................... 1,327,772
NET INCOME .......................................................................... 2,511,111
TRANSFERS
Transfers into fund ................................................................. 41,977,455
Transfers out of fund ............................................................... (5,750,617)
Net transfers ....................................................................... 36,226,838
NET ASSETS AT BEGINNING OF YEAR ..................................................... -
NET ASSETS AT END OF YEAR ........................................................... $38,737,949
/TABLE
<PAGE>
ATTACHMENT: SCHEDULE 1
FORM 5500: Line 27(a)
FLORIDA POWER & LIGHT COMPANY
EIN 59-0247775
FPL GROUP EMPLOYEE THRIFT PLAN
PLAN #002
PLAN YEAR: 1994
ASSETS HELD FOR INVESTMENT AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
Historic Current
Units Fund Name Price Cost Value
<S> <C> <C> <C> <C>
133,816,029.960 FPL Managed Income Portfolio $ 1.00 $133,816,030 $133,816,030
23,363,073.930 FPL Company Stock Fund $ 9.47 175,143,410 221,248,310
4,508,400.578 FPL Company Stock Fund - LESOP $ 9.52 39,930,622 42,919,973
1,581,855.789 Conservative Investment Strategy $10.11 15,779,898 15,992,562
3,543,412.277 Moderate Growth Investment Strategy $ 9.88 35,346,349 35,008,913
2,903,219.746 Long-Term Investment Strategy $ 9.83 29,063,658 28,538,650
691,445.658 Fidelity Magellan Fund $66.80 50,490,341 46,188,570
905,449.820 Fidelity OTC Portfolio $23.27 22,363,847 21,069,817
739,080.725 Fidelity Overseas Fund $27.30 21,049,879 20,176,904
3,583,382.660 Fidelity Retirement Government Money Market Portfolio $ 1.00 3,583,383 3,583,383
2,405,704.169 Fidelity U.S. Equity Index Portfolio $16.91 41,479,057 40,680,458
1,343,801.219 Fidelity U.S. Bond Index Portfolio $ 9.97 14,254,018 13,397,698
Outstanding Loan Balances (7.5% to 11.5%; 21,772,129 21,772,129
maturing 1995-1999)
Total Assets Held for Investment $604,072,621 $644,393,397
/TABLE
<PAGE>
ATTACHMENT: SCHEDULE 2
FORM 5500: Line 27(d)
FLORIDA POWER & LIGHT COMPANY
EIN 59-0247775
FPL GROUP EMPLOYEE THRIFT PLAN
PLAN #002
PLAN YEAR: 1994
TRANSACTIONS IN EXCESS OF FIVE PERCENT OF THE
CURRENT VALUE OF PLAN ASSETS FOR THE
YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
Transaction by Total Total Number of Number Realized
Fund or Carrier Purchases Sales Purchases of Sales Gain (Loss)
<S> <C> <C> <C> <C> <C>
FPL Managed Income Portfolio $58,386,312 $142,055,918 209 203 -
FPL Company Stock Fund $34,187,940 $ 88,097,668 204 201 $12,849,059
Conservative Investment Strategy $21,123,582 $ 5,328,467 145 117 $ (15,216)
Moderate Growth Investment Strategy $41,887,196 $ 6,397,557 185 167 $ (143,290)
Long-Term Investment Strategy $34,667,082 $ 5,455,775 198 176 $ (147,648)
Fidelity Magellan Fund $64,352,978 $ 13,038,544 204 201 $ (824,093)
Fidelity OTC Portfolio $26,976,650 $ 4,323,090 205 198 $ (289,714)
Fidelity Overseas Fund $28,276,849 $ 7,226,077 204 198 $ (893)
Fidelity U.S. Equity Index Portfolio $17,910,523 $ 60,658,100 205 202 $ 224,560
Fidelity U.S. Bond Index Portfolio $17,768,244 $ 3,398,102 207 195 $ (116,124)
/TABLE
<PAGE>
SIGNATURES
The Plan. Pursuant to the requirements of the Securities and Exchange
Act of 1934, the Employee Benefits Plan Administrative Committee has
duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
DATE: June 28, 1995 FPL Group Employee Thrift Plan
(Name of Plan)
By: JIM K. PETERSON
Jim K. Peterson
Director of Compensation
and Benefits
EXHIBIT 23
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Post-Effective
Amendment No. 2 to Registration Statement No. 33-31487 on Form S-8
of our report dated June 26, 1995 on the financial statements of the FPL
Group Employee Thrift Plan for the year ended December 31, 1994
appearing in this Annual Report on Form 11-K of FPL Group, Inc. for the
year ended December 31, 1994.
DELOITTE & TOUCHE LLP
Miami, Florida
June 28, 1995
