<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, 1995
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, 1995
and 1994, and the related statement of income and changes in net
assets for the year ended December 31, 1995. 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, 1995 and 1994 and its income and changes in net assets
for the year ended December 31, 1995 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, 1995,
and (2) transactions in excess of five percent of the current value
of plan assets for the year ended December 31, 1995, 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 1995 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 24, 1996<PAGE>
EMPLOYEE THRIFT AND RETIREMENT SAVINGS PLAN FOR
BARGAINING UNIT EMPLOYEES OF FLORIDA POWER & LIGHT COMPANY
STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
December 31,
1995 1994
<S> <C> <C>
ASSETS
Receivables:
Income ......................................................................... $ 975 $ 1,000
Total receivables .......................................................... 975 1,000
General investments:
Interest-bearing cash .......................................................... 2,079,646 1,355,188
Loans to participants - other .................................................. 19,366,022 16,730,150
Value of interest in master trusts ............................................. 81,833,417 69,133,743
Value of interest in registered investment companies ........................... 85,254,648 59,021,694
Total general investments .................................................. 188,533,733 146,240,775
Employer securities:
Employer securities held by the Plan ........................................... 159,521,957 126,026,955
Leveraged ESOP employer securities (allocated to the Plan) ..................... 135,163,804 108,031,583
Total employer securities .................................................. 294,685,761 234,058,538
Total assets ..................................................................... 483,220,469 380,300,313
LIABILITIES
Operating payables ............................................................... 359,848 362,063
Acquisition indebtedness (Leveraged ESOP loan allocated to the Plan) ............. 104,266,546 104,908,423
Total liabilities ................................................................ 104,626,394 105,270,486
NET ASSETS ....................................................................... $378,594,075 $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
STATEMENT OF INCOME AND CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year ended December 13, 1995
<S> <C> <C>
INCOME
Contributions:
Received from employer ......................................................... $ 904,257
Received from participants ..................................................... 14,667,651
Noncash contributions (from employer) .......................................... 5,367,576
Total contributions .......................................................... $ 20,939,484
Earnings on investments:
Interest:
Interest-bearing cash ........................................................ 102,809
Other loans (participant loans) .............................................. 1,485,417
Total interest ............................................................. 1,588,226
Common stock dividends ......................................................... 6,130,408
Net gain on sale of assets:
Aggregate proceeds ........................................................... 26,237,003
Aggregate carrying amount .................................................... 23,976,242
Net gain on sale of assets ................................................. 2,260,761
Unrealized appreciation of assets .............................................. 36,893,117
Net investment gain from master trusts ......................................... 9,285,093
Net investment gain from registered investment companies ....................... 18,849,236
Total income ..................................................................... 95,946,325
EXPENSES
Benefit payment and payments to provide benefits:
Directly to participants or beneficiaries ...................................... 19,845,813
Total payments to provide benefits ........................................... 19,845,813
Administrative expenses:
Contract administrator fees .................................................... 76,255
Total administrative expenses ................................................ 76,255
Total expenses ................................................................... 19,922,068
NET INCOME ....................................................................... 76,024,257
TRANSFERS
Transfers from the Plan .......................................................... (236,297)
Effect of current year Leveraged ESOP activity ................................... 27,776,288
Total transfers to the Plan ...................................................... 27,539,991
NET ASSETS AT DECEMBER 31, 1994 .................................................. 275,029,827
NET ASSETS AT DECEMBER 31, 1995 .................................................. $378,594,075
</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, 1995
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.
Fidelity Management Trust Company (Trustee) administers 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 1995 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.
Effective for the 1996 plan year, the Company instituted a Flexible
Dividend Program which enables participants to choose how their
dividends on certain shares of Common Stock held in the Plan are to be
paid. Dividends on Common Stock acquired through the Leveraged
ESOP do not qualify under this new program. The options available to
participants include having dividends paid in cash; having dividends paid
in cash and an equivalent amount of compensation contributed to their
thrift plan account; or taking a partial distribution with the balance
reinvested in Common Stock. Prior to this new program, all dividends on
stock in the FPL Group Company Stock Fund were reinvested in
Company Stock.
Contributions, Loans, Withdrawals and Transfers to (from) the Plan
For most of the year, the Plan provided for basic contributions by eligible
employees in whole percentages from 1% to 6% of their base
compensation (Earnings), which is matched in part by the Company with
shares of Common Stock. For basic Tax Saver or After Tax
Contributions, the Company match is 100% on the first 3% of a
Member's Earnings and 50% on the next 3%. The Plan also provided
for supplemental contributions by Members to be made in whole
percentages from 1% to 10% of their Earnings, bringing the total
maximum contributions to 16%. Commencing in November 1995, an
additional 1% of Earnings may be contributed as a basic contribution,
and will be matched 25% by the Company. Permitted supplemental
contributions are reduced to a maximum of 9%, so that the total
maximum contributions remains at 16%.
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 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 3,948. 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 and completed five years of service
while a Member will be permitted to transfer all or any portion of
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 his or her
employment under certain conditions. At December 31, 1995, the loan
interest rate was 9.75%.
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 transferring between bargaining unit and non-bargaining unit
status while employed at FPL.
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 .................................................. $ 3,286 $ 2,311 $ 975
Employer securities ............................................... 455,096,982 319,933,178 135,163,804
Total assets .................................................... 455,100,268 319,935,489 135,164,779
Acquisition indebtedness .......................................... 347,787,013 243,520,467 104,266,546
Interest payable .................................................. 1,200,294 840,446 359,848
Total liabilities ............................................... 348,987,307 244,360,913 104,626,394
Net assets - end .................................................. $106,112,961 $ 75,574,576 $ 30,538,385
Contributions received from employer .............................. $ 19,238,903
Interest income ................................................... 12,260
Dividends ......................................................... 17,671,130
Net gain on sale of assets (1) .................................... 1,395,644
Unrealized appreciation of assets ................................. 110,400,885
Total income .................................................... 148,718,822
Interest expense .................................................. 34,065,446
Net income ........................................................ 114,653,376 $ 80,280,294 $ 34,373,082
Distribution of shares to plans ................................... (17,840,406) (12,472,830) (5,367,576)
Transfers to (from) plan .......................................... - 1,229,218 (1,229,218)
Effect of current year Leveraged ESOP activity on net assets ...... 96,812,970 69,036,682 27,776,288
Net assets - beginning ............................................ 9,299,991 6,537,894 2,762,097
Net assets - end .................................................. $106,112,961 $ 75,574,576 $ 30,538,385
(1) Primarily represents the increase 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 released as collateral and becomes
available to satisfy matching contributions and dividend requirements
of the Plan. During 1995, 561,302 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: 1996 - $5,532,000; 1997 - $7,032,000;
1998 - $8,705,000; 1999 - $10,568,000; 2000 - $12,640,000 and
thereafter - $303,310,000. 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 1995, such dividends received
totaled approximately $21,250,000 and cash contributions from FPL
Group totaled approximately $19,239,000. 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.
Dividend income earned by the Plan results from dividends 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,
1995 1994
<S> <C> <C>
Interest-bearing cash:
Fidelity Retirement Government Money Market Portfolio ........................... $ 2,079,646 $ 1,355,188
Value of interest in Master Trusts:
Conservative Investment Strategy ................................................ $ 4,183,991 $ 3,606,419
Moderate Growth Investment Strategy ............................................. 16,558,254 12,924,502
Long-term Growth Investment Strategy ............................................ 13,127,656 10,075,095
Short-term liquid investments maintained in FPL Group Company Stock Fund ........ 3,255,550 1,716,298
Managed Income Portfolio ........................................................ 44,707,966 40,811,429
$ 81,833,417 $ 69,133,743
Value of interest in registered investment companies:
Fidelity U.S. Bond Index Portfolio .............................................. $ 5,322,977 $ 4,563,339
Fidelity U.S. Equity Index Portfolio ............................................ 29,041,073 20,392,274
Fidelity Magellan Fund .......................................................... 29,758,215 17,776,491
Fidelity OTC Portfolio .......................................................... 13,535,877 7,973,058
Fidelity Overseas Fund .......................................................... 7,596,506 8,316,532
$ 85,254,648 $ 59,021,694
FPL Group Company Stock Fund ...................................................... $159,521,957 $126,026,955
</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 ........................................... $ (44,543) $ 147,581 $ 1,115,180 $ 1,125,351
Interest and dividends .................................. 109,476 13,414 84,104 110,199
Net investment gain from master trusts .................. - 593,368 3,109,151 2,722,766
Net investment gain from registered investment companies. - - - -
Total income .......................................... 64,933 754,363 4,308,435 3,958,316
EXPENSES
Benefit payment and payments to provide benefits ........ 468,395 197,466 930,909 504,105
Administrative expenses ................................. 2,152 849 2,712 2,247
Total expenses ........................................ 470,547 198,315 933,621 506,352
NET INCOME (LOSS) ....................................... (405,614) 556,048 3,374,814 3,451,964
TRANSFERS
Net transfers to (from) the Plan ........................ 136,740 (8,187) 40,399 (149,566)
Net exchanges between investment funds .................. 1,013,257 160,405 526,377 (113,198)
Net participant loan activity ........................... (19,925) (130,694) (307,838) (136,639)
Total transfers ....................................... 1,130,072 21,524 258,938 (399,403)
NET ASSETS AT DECEMBER 31, 1994 ......................... 1,355,188 3,606,419 12,924,502 10,075,095
NET ASSETS AT DECEMBER 31, 1995 ......................... $2,079,646 $4,183,991 $16,558,254 $13,127,656
/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 ....................................... $ 2,521,606 $ 434,848 $ 2,010,629 $ 2,265,719
Interest and dividends .............................. 249,326 36,749 223,345 204,087
Net investment gain from master trusts .............. 2,859,808 - - -
Net investment gain from registered
investment companies .............................. - 823,106 7,575,807 6,673,318
Total income ...................................... 5,630,740 1,294,703 9,809,781 9,143,124
EXPENSES
Benefit payment and payments to provide benefits .... 3,508,597 211,516 1,207,589 1,033,607
Administrative expenses ............................. 9,627 9,669 25,318 11,674
Total expenses .................................... 3,518,224 221,185 1,232,907 1,045,281
NET INCOME (LOSS) ................................... 2,112,516 1,073,518 8,576,874 8,097,843
TRANSFERS
Net transfers to (from) the Plan .................... 350,656 (34,210) (200,819) (130,584)
Net exchanges between investment funds .............. 2,277,826 (211,510) 789,123 4,393,792
Net participant loan activity ....................... (844,461) (68,160) (516,379) (379,327)
Total transfers ................................... 1,784,021 (313,880) 71,925 3,883,881
NET ASSETS AT DECEMBER 31, 1994 ..................... 40,811,429 4,563,339 20,392,274 17,776,491
NET ASSETS AT DECEMBER 31, 1995 ..................... $44,707,966 $5,322,977 $29,041,073 $29,758,215
</TABLE>
<TABLE>
<CAPTION>
Fidelity Fidelity FPL Group
OTC Overseas Company
Portfolio Fund Stock Fund
<S> <C> <C> <C>
INCOME
Contributions ....................................................... $ 1,068,818 $ 1,010,816 $ 9,283,479
Interest and dividends .............................................. 98,053 97,815 6,492,066
Net gain on sale of assets .......................................... - - 2,260,761
Unrealized appreciation of assets ................................... - - 36,893,117
Net investment gain from master trusts .............................. - - -
Net investment gain from registered investment companies ............ 3,097,343 679,662 -
Total income ...................................................... 4,264,214 1,788,293 54,929,423
EXPENSES
Benefit payment and payments to provide benefits .................... 559,418 498,425 9,649,110
Administrative expenses ............................................. 533 810 10,664
Total expenses .................................................... 559,951 499,235 9,659,774
NET INCOME (LOSS) ................................................... 3,704,263 1,289,058 45,269,649
TRANSFERS
Net transfers to (from) the Plan .................................... (82,050) (37,418) (182,642)
Net exchanges between investment funds .............................. 2,090,292 (1,884,194) (9,042,170)
Net participant loan activity ....................................... (149,686) (87,472) (1,010,583)
Total transfers ................................................... 1,858,556 (2,009,084) (10,235,395)
NET ASSETS AT DECEMBER 31, 1994 ..................................... 7,973,058 8,316,532 127,743,253
NET ASSETS AT DECEMBER 31, 1995 ..................................... $13,535,877 $ 7,596,506 $162,777,507
</TABLE>
7. Income Taxes
In June 1996, FPL received from the Internal Revenue Service (IRS) a
favorable determination that the Plan, as amended and restated through
January 1, 1995, met the requirements of Section 401 of the Code. The
Trust established under the Plan 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.
8. 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.
9. 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,
1995 1994
<S> <C> <C>
MANAGED INCOME PORTFOLIO
FPL Group Employee Thrift Plan
EIN 59-0247775
PN 002 ............................................................................... 76.9% 76.6%
Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of
Florida Power & Light Company
EIN 59-0247775
PN 003 ............................................................................... 23.1% 23.4%
CONSERVATIVE INVESTMENT STRATEGY
FPL Group Employee Thrift Plan
EIN 59-0247775
PN 002 ............................................................................... 80.9% 81.6%
Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of
Florida Power & Light Company
EIN 59-0247775
PN 003 ............................................................................... 19.1% 18.4%
MODERATE GROWTH INVESTMENT STRATEGY
FPL Group Employee Thrift Plan
EIN 59-0247775
PN 002 ............................................................................... 72.8% 73.0%
Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of
Florida Power & Light Company
EIN 59-0247775
PN 003 ............................................................................... 27.2% 27.0%
LONG-TERM GROWTH INVESTMENT STRATEGY
FPL Group Employee Thrift Plan
EIN 59-0247775
PN 002 ............................................................................... 74.1% 73.9%
Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of
Florida Power & Light Company
EIN 59-0247775
PN 003 ............................................................................... 25.9% 26.1%
/TABLE
<PAGE>
MANAGED INCOME PORTFOLIO
STATEMENT OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
December 31,
1995
<S> <C>
ASSETS
General investments:
Value of unallocated insurance and financial institution contracts .............................. $193,915,147
Total assets ...................................................................................... 193,915,147
LIABILITIES ....................................................................................... -
NET ASSETS ........................................................................................ $193,915,147
</TABLE>
STATEMENT OF INCOME AND CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
1995
<S> <C> <C>
INCOME
Contributions received from participants ............................................ $ 7,751,774
Earnings on investments:
Interest .......................................................................... 13,058,214
Total income ........................................................................ 20,809,988
EXPENSES
Benefit payments to participants or beneficiaries ................................... 19,380,703
Account maintenance fees ............................................................ 24,338
Total expenses ...................................................................... 19,405,041
NET INCOME .......................................................................... 1,404,947
TRANSFERS
Transfers into fund ................................................................. 20,039,323
Transfers out of fund ............................................................... (2,156,582)
Net transfers ....................................................................... 17,882,741
NET ASSETS AT BEGINNING OF YEAR ..................................................... 174,627,459
NET ASSETS AT END OF YEAR ........................................................... $193,915,147
/TABLE
<PAGE>
CONSERVATIVE INVESTMENT STRATEGY
STATEMENT OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
December 31,
1995
<S> <C>
ASSETS
Receivables:
Income .......................................................................................... $ 97,323
General investments:
Value of unallocated insurance and financial institution contracts .............................. 11,125,422
Mutual funds .................................................................................... 10,659,174
Total general investments ................................................................... 21,784,596
Total assets ...................................................................................... 21,881,919
LIABILITIES ....................................................................................... 695
NET ASSETS ........................................................................................ $21,881,224
</TABLE>
STATEMENT OF INCOME AND CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
1995
<S> <C> <C>
INCOME
Contributions received from participants ............................................ $ 590,650
Earnings on investments:
Interest .......................................................................... 694,887
Dividends ......................................................................... 620,335
Net gain (loss) on sale of assets:
Aggregate proceeds .............................................................. $5,809,431
Aggregate costs ................................................................. 5,332,919 476,512
Unrealized appreciation of assets ................................................. 1,295,590
Total income ........................................................................ 3,677,974
EXPENSES
Benefit payments to participants or beneficiaries ................................... 1,417,585
Account maintenance fees ............................................................ 3,552
Total expenses ...................................................................... 1,421,137
NET INCOME .......................................................................... 2,256,837
TRANSFERS
Transfers into fund ................................................................. 4,712,732
Transfers out of fund ............................................................... (4,758,100)
Net transfers ....................................................................... (45,368)
NET ASSETS AT BEGINNING OF YEAR ..................................................... 19,669,755
NET ASSETS AT END OF YEAR ........................................................... $21,881,224
/TABLE
<PAGE>
MODERATE GROWTH INVESTMENT STRATEGY
STATEMENT OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
December 31,
1995
<S> <C>
ASSETS
Receivables:
Income .......................................................................................... $ 163,111
Other ........................................................................................... 55,111
Total receivables ............................................................................. 218,222
General investments:
Value of unallocated insurance and financial institution contracts .............................. 13,476,054
Mutual funds .................................................................................... 47,463,369
Total general investments ................................................................... 60,939,423
Total assets ...................................................................................... 61,157,645
LIABILITIES ....................................................................................... 189,645
NET ASSETS ........................................................................................ $60,968,000
</TABLE>
STATEMENT OF INCOME AND CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
1995
<S> <C> <C>
INCOME
Contributions received from participants ............................................ $ 3,712,529
Earnings on investments:
Interest .......................................................................... 896,096
Dividends ......................................................................... 2,494,287
Net gain (loss) on sale of assets:
Aggregate proceeds .............................................................. $6,995,768
Aggregate costs ................................................................. 6,475,707 520,061
Unrealized appreciation of assets ................................................. 7,621,084
Total income ........................................................................ 15,244,057
EXPENSES
Benefit payments to participants or beneficiaries ................................... 2,399,185
Account maintenance fees ............................................................ 10,836
Total expenses ...................................................................... 2,410,021
NET INCOME .......................................................................... 12,834,036
TRANSFERS
Transfers into fund ................................................................. 8,036,292
Transfers out of fund ............................................................... (7,898,877)
Net transfers ....................................................................... 137,415
NET ASSETS AT BEGINNING OF YEAR ..................................................... 47,996,549
NET ASSETS AT END OF YEAR ........................................................... $60,968,000
/TABLE
<PAGE>
LONG-TERM GROWTH INVESTMENT STRATEGY
STATEMENT OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
December 31,
1995
<S> <C>
ASSETS
Receivables:
Income .......................................................................................... $ 64,372
Other ........................................................................................... 9,816
Total receivables ............................................................................. 74,188
General investments:
Value of unallocated insurance and financial institution contracts .............................. 4,332,541
Mutual funds .................................................................................... 46,383,613
Total general investments ................................................................... 50,716,154
Total assets ...................................................................................... 50,790,342
LIABILITIES ....................................................................................... 44,815
NET ASSETS ........................................................................................ $50,745,527
</TABLE>
STATEMENT OF INCOME AND CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
1995
<S> <C> <C>
INCOME
Contributions received from participants ............................................ $ 4,596,955
Earnings on investments:
Interest .......................................................................... 293,044
Dividends ......................................................................... 2,011,894
Net gain (loss) on sale of assets:
Aggregate proceeds .............................................................. $7,814,678
Aggregate costs ................................................................. 7,170,423 644,255
Unrealized appreciation of assets ................................................. 7,451,382
Total income ........................................................................ 14,997,530
EXPENSES
Benefit payments to participants or beneficiaries ................................... 2,337,892
Account maintenance fees ............................................................ 9,544
Total expenses ...................................................................... 2,347,436
NET INCOME .......................................................................... 12,650,094
TRANSFERS
Transfers into fund ................................................................. 8,236,819
Transfers out of fund ............................................................... (8,879,335)
Net transfers ....................................................................... (642,516)
NET ASSETS AT BEGINNING OF YEAR ..................................................... 38,737,949
NET ASSETS AT END OF YEAR ........................................................... $50,745,527
/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: 1995
ASSETS HELD FOR INVESTMENT AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
Historic Current
Units Fund Name Price Cost Value
<S> <C> <C> <C> <C>
44,707,966.460 FPL Managed Income Portfolio $ 1.00 $ 44,707,966 $ 44,707,966
10,419,281.677 FPL Company Stock Fund $12.46 84,231,728 129,824,250
2,627,851.466 FPL Company Stock Fund - LESOP $12.54 24,275,566 32,953,257
355,177.517 Conservative Investment Strategy $11.78 3,613,044 4,183,991
1,348,392.012 Moderate Growth Investment Strategy $12.28 13,797,804 16,558,254
1,050,212.415 Long-Term Investment Strategy $12.50 10,844,803 13,127,656
346,106.252 Fidelity Magellan Fund $85.98 26,921,016 29,758,215
446,286.738 Fidelity OTC Portfolio $30.33 11,911,541 13,535,877
261,317.712 Fidelity Overseas Fund $29.07 7,418,155 7,596,506
2,079,646.250 Fidelity Retirement Government Money Market Portfolio $ 1.00 2,079,646 2,079,646
1,286,711.250 Fidelity U.S. Equity Index Portfolio $22.57 23,100,286 29,041,073
486,116.642 Fidelity U.S. Bond Index Portfolio $10.95 5,149,424 5,322,977
Outstanding Loan Balances (7.5% to 11.5%; 19,366,022 19,366,022
maturing 1996-2000)
Total Assets Held for Investment $277,417,001 $348,055,690
/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: 1995
TRANSACTIONS IN EXCESS OF FIVE PERCENT OF THE
CURRENT VALUE OF PLAN ASSETS FOR THE
YEAR ENDED DECEMBER 31, 1995
<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 $20,515,878 $16,619,341 250 246 -
FPL Company Stock Fund $15,570,504 $23,119,364 252 252 $4,525,560
Fidelity Magellan Fund $16,433,338 $ 9,479,567 249 242 $ 519,598
/TABLE
<PAGE>
SIGNATURES
The Plan. Pursuant to the requirements of the Securities 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, 1996 Employee Thrift and
Retirement Savings Plan
for Bargaining Unit
Employees of
Florida Power & Light
Company
(Name of Plan)
By: DENNIS P. COYLE
Dennis P. Coyle
General Counsel
and Secretary
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 24, 1996 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, 1995 appearing in this Annual Report on Form 11-K of
FPL Group, Inc. for the year ended December 31, 1995.
DELOITTE & TOUCHE LLP
Miami, Florida
June 28, 1996
