<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
Employee Thrift and Retirement Savings Plan for
Bargaining Unit Employees of Florida Power & Light Company
(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 Employee
Thrift and Retirement Savings Plan for Bargaining Unit Employees of
Florida Power & Light Company (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>
EMPLOYEE THRIFT AND RETIREMENT SAVINGS PLAN FOR
BARGAINING UNIT EMPLOYEES OF FLORIDA POWER & LIGHT COMPANY
STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
December 31,
1994 1993
<S> <C> <C>
ASSETS
Receivables:
Employer contributions ......................................................... - $ 635,120
Income ......................................................................... $ 1,000 522
Total receivables .......................................................... 1,000 635,642
General investments:
Interest-bearing cash .......................................................... 1,355,188 1,587,722
Loans to participants - other .................................................. 16,730,150 11,599,055
Value of interest in master trusts ............................................. 69,133,743 101,183,100
Value of interest in registered investment companies ........................... 59,021,694 -
Total general investments .................................................. 146,240,775 114,369,877
Employer securities:
Employer securities held by the Plan ........................................... 126,026,955 155,972,982
Leveraged ESOP employer securities (allocated to the Plan) ..................... 108,031,583 120,049,150
Total employer securities .................................................. 234,058,538 276,022,132
Total assets ..................................................................... 380,300,313 391,027,651
LIABILITIES
Operating payables ............................................................... 362,063 400,182
Acquisition indebtedness (Leveraged ESOP loan allocated to the Plan) ............. 104,908,423 100,488,744
Total liabilities ................................................................ 105,270,486 100,888,926
NET ASSETS ....................................................................... $275,029,827 $290,138,725
</TABLE>
The accompanying Notes to Financial Statements are an integral part of
these statements.<PAGE>
EMPLOYEE THRIFT AND RETIREMENT SAVINGS PLAN FOR
BARGAINING UNIT EMPLOYEES OF FLORIDA POWER & LIGHT COMPANY
STATEMENT OF INCOME AND CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year ended December 13, 1994
<S> <C> <C>
INCOME
Contributions:
Received from employer ......................................................... $ 1,989,996
Received from participants ..................................................... 15,665,753
Noncash contributions (from employer) .......................................... 4,824,487
Total contributions .......................................................... $ 22,480,236
Earnings on investments:
Interest:
Interest-bearing cash ........................................................ 32,593
Other loans (participant loans) .............................................. 1,182,867
Total interest ............................................................. 1,215,460
Common stock dividends ......................................................... 6,689,188
Net loss on sale of assets:
Aggregate proceeds ........................................................... 39,096,048
Aggregate carrying amount .................................................... 44,071,618
Net loss on sale of assets ................................................. (4,975,570)
Unrealized depreciation of assets .............................................. (10,917,922)
Net investment gain from master trusts ......................................... 2,769,818
Net investment loss from registered investment companies ....................... (1,677,659)
Total income ..................................................................... 15,583,551
EXPENSES
Benefit payment and payments to provide benefits:
Directly to participants or beneficiaries ...................................... 18,161,897
Total payments to provide benefits ........................................... 18,161,897
Administrative expenses:
Recordkeeping fees ............................................................. 64,596
Total administrative expenses ................................................ 64,596
Total expenses ................................................................... 18,226,493
NET LOSS ......................................................................... (2,642,942)
TRANSFERS
Transfers to the Plan ............................................................ 3,933,769
Effect of current year Leveraged ESOP activity ................................... (16,399,725)
Total transfers from the Plan .................................................... (12,465,956)
NET ASSETS AT DECEMBER 31, 1993 .................................................. 290,138,725
NET ASSETS AT DECEMBER 31, 1994 .................................................. $275,029,827
</TABLE>
The accompanying Notes to Financial Statements are an integral part of
these statements.<PAGE>
EMPLOYEE THRIFT AND RETIREMENT SAVINGS PLAN FOR
BARGAINING UNIT EMPLOYEES OF FLORIDA POWER & LIGHT COMPANY
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 Employee Thrift and Retirement Savings
Plan for Bargaining Unit Employees of Florida Power & Light Company
(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, which is voluntary, is open to any employee of
Florida Power & Light Company (FPL or Company) whose compensation
is established under a collective bargaining agreement between the
Company and the International Brotherhood of Electrical Workers AFL-
CIO through its System Council U-4 (Bargaining Unit). 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, Inc. (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 FPL
Group Employee Thrift Plan (Group 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 3,808. 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. Company contributions made on behalf of business managers
and others employed by the Bargaining Unit and serving on Company
property while on a leave of absence from the Company will be
reimbursed by the Bargaining Unit.
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 Group 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
Group 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>
Total ESOP The
Account Group Plan The 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 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's 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 to purchase Common
Stock by the Trustee. 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 are 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 ........................... $ 1,355,188 -
EB Temporary Investment Fund .................................................... - $ 1,587,722
$ 1,355,188 $ 1,587,722
Value of interest in Master Trusts:
Conservative Investment Strategy ................................................ $ 3,606,419 -
Moderate Growth Investment Strategy ............................................. 12,924,502 -
Long-term Growth Investment Strategy ............................................ 10,075,095 -
Short-term liquid investments maintained in FPL Company Stock Fund .............. 1,716,298 -
Managed Income Portfolio (previously Fund A) .................................... 40,811,429 -
Fund A .......................................................................... - $ 67,594,539
Fund B .......................................................................... - 33,588,561
$ 69,133,743 $101,183,100
Value of interest in registered investment companies:
Fidelity U.S. Bond Index Portfolio .............................................. $ 4,563,339 -
Fidelity U.S. Equity Index Portfolio (previously Fund B) ........................ 20,392,274 -
Fidelity Magellan Fund .......................................................... 17,776,491 -
Fidelity OTC Portfolio .......................................................... 7,973,058 -
Fidelity Overseas Fund .......................................................... 8,316,532 -
$ 59,021,694 -
FPL Company Stock Fund ............................................................ $126,026,955 $155,972,982
</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 ........................................... $ 8,376 $ 156,163 $ 1,082,252 $ 1,252,800
Interest and dividends .................................. 35,937 10,399 70,372 86,394
Net investment gain (loss) from master trusts ........... - 40,316 (161,878) (227,139)
Net investment gain (loss) from registered
investment companies .................................. - - - -
Total income .......................................... 44,313 206,878 990,746 1,112,055
EXPENSES
Benefit payment and payments to provide benefits ........ 51,927 77,093 317,220 260,106
Administrative expenses ................................. 1,413 737 2,384 1,949
Total expenses ........................................ 53,340 77,830 319,604 262,055
NET INCOME (LOSS) ....................................... (9,027) 129,048 671,142 850,000
TRANSFERS
Net transfers to (from) the Plan ........................ 22,137 56,222 (26,447) (19,092)
Net exchanges between investment funds .................. 1,390,852 3,534,575 12,590,582 9,525,150
Net participant loan activity ........................... (48,774) (113,426) (310,775) (280,963)
Total transfers ....................................... 1,364,215 3,477,371 12,253,360 9,225,095
NET ASSETS AT DECEMBER 31, 1993 ......................... 0 0 0 0
NET ASSETS AT DECEMBER 31, 1994 ......................... $1,355,188 $3,606,419 $12,924,502 $10,075,095
/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 ....................................... $ 2,479,928 $ 488,302 $ 2,263,815 $ 2,343,027
Interest and dividends .............................. 197,633 29,978 177,522 147,119
Net investment gain (loss) from master trusts ....... 3,118,519 - - -
Net investment gain (loss) from registered
investment companies .............................. - (58,063) 376,040 (1,256,684)
Total income ...................................... 5,796,080 460,217 2,817,377 1,233,462
EXPENSES
Benefit payment and payments to provide benefits .... 5,732,192 173,039 1,822,973 393,509
Administrative expenses ............................. 8,306 8,482 21,303 9,402
Total expenses .................................... 5,740,498 181,521 1,844,276 402,911
NET INCOME (LOSS) ................................... 55,582 278,696 973,101 830,551
TRANSFERS
Net transfers to (from) the Plan .................... 657,787 38,939 576,247 (63,907)
Net exchanges between investment funds .............. (26,228,397) 4,339,884 (14,033,590) 17,391,479
Net participant loan activity ....................... (1,268,082) (94,180) (712,045) (381,632)
Total transfers ................................... (26,838,692) 4,284,643 (14,169,388) 16,945,940
NET ASSETS AT DECEMBER 31, 1993 ..................... 67,594,539 0 33,588,561 0
NET ASSETS AT DECEMBER 31, 1994 ..................... $ 40,811,429 $4,563,339 $ 20,392,274 $17,776,491
</TABLE>
<TABLE>
<CAPTION>
FPL
Fidelity Fidelity Company
OTC Overseas Stock
Portfolio Fund Fund
<S> <C> <C> <C>
INCOME
Contributions ....................................................... $1,103,663 $1,184,899 $ 10,117,011
Interest and dividends .............................................. 72,919 81,465 6,995,748
Net loss on sale of assets .......................................... - - (4,975,570)
Unrealized depreciation of assets ................................... - - (10,917,922)
Net investment gain (loss) from master trusts ....................... - - -
Net investment gain (loss) from registered investment companies ..... (511,734) (227,218) -
Total income ...................................................... 664,848 1,039,146 1,219,267
EXPENSES
Benefit payment and payments to provide benefits .................... 148,293 207,860 8,548,302
Administrative expenses ............................................. 302 675 9,643
Total expenses .................................................... 148,595 208,535 8,557,945
NET INCOME (LOSS) ................................................... 516,253 830,611 (7,338,678)
TRANSFERS
Net transfers to (from) the Plan .................................... (25,978) (14,444) 2,592,949
Net exchanges between investment funds .............................. 7,592,050 7,693,876 (23,796,461)
Net participant loan activity ....................................... (109,267) (193,511) (1,852,144)
Total transfers ................................................... 7,456,805 7,485,921 (23,055,656)
NET ASSETS AT DECEMBER 31, 1993 ..................................... 0 0 158,137,587
NET ASSETS AT DECEMBER 31, 1994 ..................................... $7,973,058 $8,316,532 $127,743,253
/TABLE
<PAGE>
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 ......................................... $18,161,897
Subtract: Amounts allocated to withdrawing participants at December 31, 1993 ...................... (7,074,873)
Benefits paid to participants per the Form 5500 .................................................... $11,087,024
</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, the 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
EMPLOYEE THRIFT AND RETIREMENT SAVINGS PLAN
FOR THE BARGAINING UNIT EMPLOYEES OF
FLORIDA POWER & LIGHT COMPANY
PLAN #003
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>
40,811,428.840 FPL Managed Income Portfolio $ 1.00 $ 40,811,429 $ 40,811,429
11,184,391.263 FPL Company Stock Fund $ 9.47 87,255,027 105,916,185
2,292,759.239 FPL Company Stock Fund - LESOP $ 9.52 20,454,332 21,827,068
356,717.996 Conservative Investment Strategy $10.11 3,560,115 3,606,419
1,308,147.937 Moderate Growth Investment Strategy $ 9.88 13,042,529 12,924,502
1,024,933.345 Long-Term Investment Strategy $ 9.83 10,253,938 10,075,095
266,115.135 Fidelity Magellan Fund $66.80 19,447,647 17,776,491
342,632.468 Fidelity OTC Portfolio $23.27 8,456,067 7,973,058
304,634.880 Fidelity Overseas Fund $27.30 8,679,110 8,316,532
1,355,188.500 Fidelity Retirement Government Money Market Portfolio $ 1.00 1,355,188 1,355,188
1,205,929.892 Fidelity U.S. Equity Index Portfolio $16.91 20,791,172 20,392,274
457,707.040 Fidelity U.S. Bond Index Portfolio $ 9.97 4,849,167 4,563,339
Outstanding Loan Balances (7.5% to 11.5%; 16,730,150 16,730,150
maturing 1995-1999)
Total Assets Held for Investment $255,685,871 $272,267,730
/TABLE
<PAGE>
ATTACHMENT: Schedule 2
FORM 5500: Line 27 (d)
FLORIDA POWER & LIGHT COMPANY
EIN 59-0247775
EMPLOYEE THRIFT AND RETIREMENT SAVINGS PLAN
FOR THE BARGAINING UNIT EMPLOYEES OF
FLORIDA POWER & LIGHT COMPANY
PLAN #003
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 Fund $13,505,982 $ 37,944,569 202 201 -
FPL Company Stock Fund $13,302,242 $ 38,025,719 205 201 $5,219,866
FPL Company Stock Fund - LESOP $ 4,828,155 $ 1,070,329 179 178 $ (48,115)
Conservative Investment Strategy $ 4,416,165 $ 850,036 82 53 $ (6,014)
Moderate Growth Investment Strategy $15,056,172 $ 1,969,627 163 140 $ (44,016)
Long-Term Investment Strategy $12,128,429 $ 1,826,002 156 134 $ (48,488)
Fidelity Magellan Fund $22,624,532 $ 2,946,433 205 195 $ (230,452)
Fidelity OTC Portfolio $ 9,935,573 $ 1,380,856 200 185 $ (98,650)
Fidelity Overseas Fund $10,020,214 $ 1,337,057 200 184 $ (4,048)
Fidelity U.S. Equity Index Portfolio $ 8,602,053 $ 21,107,467 207 202 $ 58,825
Fidelity U.S. Bond Index Portfolio $ 5,773,086 $ 888,998 183 152 $ (34,920)
/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 Employee Thrift and Retirement Savings Plan
for Bargaining Unit Employees of
Florida Power & Light Company
(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. 33-33215 on Form S-8
of our report dated June 26, 1995 on the financial statements of the
Employee Thrift and Retirement Savings Plan for Bargaining Unit
Employees of Florida Power & Light Company 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
