<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, 1996
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 accompanying statements of net assets available
for benefits of the FPL Group Employee Thrift Plan (the "Plan") as of
December 31, 1996 and 1995, and the related statement of changes in
net assets available for benefits for the year ended December 31, 1996.
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 net assets available for benefits of the Plan as of
December 31, 1996 and 1995 and the changes in net assets available
for benefits for the year ended December 31, 1996 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, 1996,
and (2) transactions in excess of five percent of the current value of plan
assets for the year ended December 31, 1996, 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.
The supplemental information by fund is presented for the purposes of
additional analysis of the basic financial statements rather than to
present information regarding the net assets available for benefits of the
individual funds, and is not a required part of the basic financial
statements. The supplemental schedules and supplemental information
by fund are the responsibility of the Plan's management. Such
schedules have been subjected to the auditing procedures applied in our
audit of the basic 1996 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 20, 1997
<PAGE>
FPL GROUP EMPLOYEE THRIFT PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
December 31,
1996 1995
<S> <C> <C>
ASSETS
Receivables:
Accrued interest - ESOP Account ............................................... $ 2,687 $ 2,311
Total receivables ........................................................... 2,687 2,311
General investments:
Interest-bearing cash ......................................................... 6,598,924 6,812,420
Loans to participants - other ................................................. 24,214,344 25,558,049
Value of interest in master trusts ............................................ 269,909,329 255,398,842
Value of interest in registered investment companies .......................... 242,085,635 205,606,061
Total general investments ................................................... 542,808,232 493,375,372
Employer securities:
Employer securities held by the Plan .......................................... 299,873,755 319,614,416
Leveraged ESOP employer securities (allocated to the Plan)..................... 293,761,010 319,933,178
Total employer securities ................................................... 593,634,765 639,547,594
Total assets .................................................................... 1,136,445,684 1,132,925,277
LIABILITIES
Interest payable - ESOP Account ................................................. 762,421 840,446
Acquisition indebtedness (Leveraged ESOP loan allocated to the Plan) ............ 236,043,545 243,520,467
Total liabilities ............................................................... 236,805,966 244,360,913
NET ASSETS ...................................................................... $ 899,639,718 $ 888,564,364
</TABLE>
The accompanying Notes to Financial Statements are an integral part of
these statements.
<PAGE>
FPL GROUP EMPLOYEE THRIFT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
Year Ended December 31, 1996
<S> <C> <C>
INCOME
Contributions:
Received from participants ....................................................... $ 29,104,853
Noncash contributions (from employer) ............................................ 13,035,431
Total contributions ............................................................ $ 42,140,284
Earnings on investments:
Interest:
Interest-bearing cash .......................................................... 307,558
Other loans (participant loans) ................................................ 2,021,129
Total interest ............................................................... 2,328,687
Common stock dividends ........................................................... 9,781,709
Net gain (loss) on sale of assets:
Aggregate proceeds ............................................................. 100,020,904
Aggregate carrying amount ...................................................... 102,897,788
Net loss on sale of assets ................................................... (2,876,884)
Unrealized appreciation of assets ................................................ 552,110
Net investment gain from master trusts ........................................... 21,770,994
Net investment gain from registered investment companies ......................... 34,162,838
Total income ....................................................................... 107,859,738
EXPENSES
Benefit payment and payments to provide benefits:
Directly to participants or beneficiaries ........................................ 75,435,582
Total payments to provide benefits ............................................. 75,435,582
Administrative expenses:
Contract administrator fees ...................................................... 86,295
Total administrative expenses .................................................. 86,295
Total expenses ..................................................................... 75,521,877
NET INCOME ......................................................................... 32,337,861
TRANSFERS
Transfers from the Plan ............................................................ (2,645,662)
Effect of current year Leveraged ESOP activity ..................................... (18,616,845)
Total transfers from the Plan ...................................................... (21,262,507)
NET ASSETS AT DECEMBER 31, 1995 .................................................... 888,564,364
NET ASSETS AT DECEMBER 31, 1996 .................................................... $899,639,718
</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, 1996
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. Fidelity
Management Trust Company (Trustee) administers the trust (Trust)
established under the Plan and the Employee Thrift and Retirement
Savings Plan for the Bargaining Unit Employees of Florida Power & Light
Company (FPL Bargaining Plan).
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 certain 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 their
contributions (Tax Saver Contributions) until they are distributed from the
Plan. Tax Saver Contributions were limited in 1996 to a maximum of
$9,500 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 portion 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 reinvestment of dividends in Company Stock;
distribution of dividends in cash; distribution of dividends in cash and
contribution of an equivalent amount of their compensation to their thrift
plan account; or 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
The Plan provides for basic contributions by eligible employees in whole
percentages from 1% to 7% 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, 50% on the next 3% and
25% on the last 1%. The Plan also provides for supplemental
contributions by Members to be made in whole percentages from 1% to
9% of their Earnings, bringing the total maximum contributions to 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
Bargaining 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 7,077. 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.
A Member may borrow from his or her account during his or her
employment under certain conditions. At December 31, 1996, the loan
interest rate was 8.5%.
Withdrawals by Members from certain of their accounts during their
employment are permitted with certain penalties and restrictions. The
penalties limit a Member's contributions to 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 transferring between bargaining unit and non-bargaining unit
status while employed by 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.
Investment Valuation and Income Recognition
The Plan's investments are stated at fair value, except insurance and
financial institution investment contracts which are stated at contract
value (see Investment Contracts below). Shares of registered
investment companies are valued at quoted market prices, which
represent the net asset value of shares held by the Plan at year end.
The FPL Group Company stock is valued at its quoted market price.
Loans to participants are valued at cost, which approximates fair value.
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.
Investment Contracts
The Plan has entered into investment contracts with various insurance
companies and financial institutions. The contracts are fully benefit
responsive and are included in the financial statements at contract value
(which represents contributions made under the contract, plus earnings,
less withdrawals and administrative expenses). There are no reserves
against contract values for credit risk of the contract issuer or otherwise.
The contract value of investment contracts at December 31, 1996, which
are held in the Conservative Investment Strategy, Moderate Growth
Investment Strategy, Long-Term Growth Investment Strategy, and
Managed Income Portfolio was $8,699,000, $10,330,000, $3,308,000
and $147,695,000, respectively. As of the same date, the fair value of
investment contracts in these funds was $8,750,000, $10,390,000,
$3,327,000 and $148,559,000, respectively. At December 31, 1995, the
contract value of investment contracts for these funds was $8,400,000,
$9,677,000, $3,143,000 and $138,029,000, respectively, with fair values
of $8,618,000, $9,928,000, $3,225,000 and $141,614,000, respectively.
The average yield and crediting interest rates for the portfolio of
investment contracts were 6.68%. The crediting interest rate is based
on an agreed-upon formula with the issuer, but cannot be less than zero.
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 Net Assets Available for Benefits, 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 (see Note 3). ESOP shares allocated to date are
classified as employer securities held by the Plan on the Statements of
Net Assets Available for Benefits. 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 (from) 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% 69% 31%
Accrued interest .................................................. $ 3,909 $ 2,687 $ 1,222
Employer securities ............................................... 427,350,902 293,761,010 133,589,892
Total assets .................................................... 427,354,811 293,763,697 133,591,114
Acquisition indebtedness .......................................... 343,386,013 236,043,545 107,342,468
Interest payable .................................................. 1,109,137 762,421 346,716
Total liabilities ............................................... 344,495,150 236,805,966 107,689,184
Net assets - end .................................................. $ 82,859,661 $ 56,957,731 $ 25,901,930
Contributions received from employer .............................. $ 16,230,758
Interest income ................................................... 9,977
Dividends ......................................................... 17,537,072
Net loss on sale of assets (1) .................................... (830,145)
Unrealized depreciation of assets ................................. (3,483,839)
Total income .................................................... 29,463,823
Interest expense .................................................. 33,419,307
Net loss .......................................................... (3,955,484) $ (2,719,001) $ (1,236,483)
Distribution of shares to plans ................................... (19,297,816) (13,035,431) (6,262,385)
Transfers to (from) the plan ...................................... - (2,862,413) 2,862,413
Effect of current year Leveraged ESOP activity on net assets ...... (23,253,300) (18,616,845) (4,636,455)
Net assets - beginning ............................................ 106,112,961 75,574,576 30,538,385
Net assets - end .................................................. $ 82,859,661 $ 56,957,731 $ 25,901,930
(1) Primarily represents the decrease in market value since the beginning of the year on 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, which holds plan assets for both the
Plan and the FPL Bargaining Plan, 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 and the FPL Bargaining Plan. During 1996, 504,072 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:
1997 - $1,655,000; 1998 - $1,672,000; 1999 - $1,825,000; 2000 -
$1,873,000; 2001 - $3,883,000 and thereafter - $332,478,000. The
Acquisition Indebtedness matures in 2019, 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
1996, such dividends received totaled approximately $21,754,000 and
cash contributions from FPL Group totaled approximately $16,231,000.
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. During 1996, no cash contributions were
necessary.
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 Net Assets Available for Benefits Information by
Investment Fund Option
Information about the Statements of Net Assets Available for Benefits
by investment fund option is as follows:
<TABLE>
<CAPTION>
December 31,
1996 1995
<S> <C> <C>
Interest-bearing cash:
Fidelity Retirement Government Money Market Portfolio .............................. $ 6,598,924 $ 6,812,420
Value of interest in Master Trusts:
Conservative Investment Strategy ................................................... $ 16,735,918 $ 17,680,817
Moderate Growth Investment Strategy ................................................ 48,888,853 44,386,441
Long-term Growth Investment Strategy ............................................... 45,603,632 37,601,660
Short-term liquid investments maintained in FPL Group Company Stock Fund ........... 3,624,176 6,522,743
Managed Income Portfolio ........................................................... 155,056,750 149,207,181
$269,909,329 $255,398,842
Value of interest in registered investment companies:
Fidelity U.S. Bond Index Portfolio ................................................. $ 14,739,302 $ 15,929,578
Fidelity U.S. Equity Index Portfolio ............................................... 82,132,216 60,944,252
Fidelity Magellan Fund ............................................................. 69,812,448 71,708,694
Fidelity OTC Portfolio ............................................................. 49,397,073 36,841,241
Fidelity Overseas Fund ............................................................. 26,004,596 20,182,296
$242,085,635 $205,606,061
FPL Group Company Stock Fund ......................................................... $299,873,755 $319,614,416
</TABLE>
6. Statement of Changes in Net Assets Available for Benefits
Information by Investment Fund Option
Information about the Statement of Changes in Net Assets Available for
Benefits 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 ............................................ $ 223,159 $ 327,448 $ 2,243,304 $ 3,454,136
Interest and dividends ................................... 307,558 - - -
Net investment gain from master trusts ................... - 1,269,589 5,451,780 5,977,971
Net investment gain from registered investment companies.. - - - -
Total income ........................................... 530,717 1,597,037 7,695,084 9,432,107
EXPENSES
Benefit payment and payments to provide benefits ......... 2,347,548 1,070,631 2,579,754 2,398,671
Administrative expenses .................................. 2,588 1,057 3,521 3,526
Total expenses ......................................... 2,350,136 1,071,688 2,583,275 2,402,197
NET INCOME (LOSS) ........................................ (1,819,419) 525,349 5,111,809 7,029,910
TRANSFERS
Net transfers to (from) the Plan ......................... - (304,548) (90,142) 23,243
Net exchanges between investment funds ................... 1,609,992 (1,153,161) (517,220) 747,328
Net participant loan activity ............................ (4,069) (12,539) (2,035) 201,491
Total transfers ........................................ 1,605,923 (1,470,248) (609,397) 972,062
NET ASSETS AT DECEMBER 31, 1995 .......................... 6,812,420 17,680,817 44,386,441 37,601,660
NET ASSETS AT DECEMBER 31, 1996 .......................... $ 6,598,924 $16,735,918 $48,888,853 $45,603,632
</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 .......................................... $ 3,900,654 $ 943,793 $ 3,821,220 $ 5,557,157
Interest and dividends ................................. - - - -
Net investment gain from master trusts ................. 9,071,654 - - -
Net investment gain from registered investment
companies ............................................ - 478,272 14,338,018 7,550,696
Total income ....................................... 12,972,308 1,422,065 18,159,238 13,107,853
EXPENSES
Benefit payment and payments to provide benefits ....... 18,455,208 977,165 5,250,892 6,443,216
Administrative expenses ................................ 8,585 15,003 25,811 15,798
Total expenses ....................................... 18,463,793 992,168 5,276,703 6,459,014
NET INCOME (LOSS) ...................................... (5,491,485) 429,897 12,882,535 6,648,839
TRANSFERS
Net transfers to (from) the Plan ....................... 49,111 (59,422) (434,183) (403,212)
Net exchanges between investment funds ................. 11,229,662 (1,676,114) 8,693,363 (8,533,057)
Net participant loan activity .......................... 62,281 115,363 46,249 391,184
Total transfers ...................................... 11,341,054 (1,620,173) 8,305,429 (8,545,085)
NET ASSETS AT DECEMBER 31, 1995 ........................ 149,207,181 15,929,578 60,944,252 71,708,694
NET ASSETS AT DECEMBER 31, 1996 ........................ $155,056,750 $14,739,302 $82,132,216 $69,812,448
</TABLE>
<TABLE>
<CAPTION>
Fidelity Fidelity FPL Group
OTC Overseas Company Loan
Portfolio Fund Stock Fund Fund
<S> <C> <C> <C>
INCOME
Contributions .......................................... $ 3,270,724 $ 2,233,289 $ 16,165,400 -
Interest and dividends ................................. - - 9,781,709 $ 2,021,129
Net gain on sale of assets ............................. - - (2,876,884) -
Unrealized appreciation of assets ...................... - - 552,110 -
Net investment gain from master trusts ................. - - - -
Net investment gain from registered investment companies 8,857,890 2,937,962 - -
Total income ......................................... 12,128,614 5,171,251 23,622,335 2,021,129
EXPENSES
Benefit payment and payments to provide benefits ....... 4,218,835 2,587,270 26,830,860 2,275,532
Administrative expenses ................................ 965 719 8,722 -
Total expenses ....................................... 4,219,800 2,587,989 26,839,582 2,275,532
NET INCOME (LOSS) ...................................... 7,908,814 2,583,262 (3,217,247) (254,403)
TRANSFERS
Net transfers to (from) the Plan ....................... (163,700) (37,293) (1,172,066) -
Net exchanges between investment funds ................. 4,572,543 3,046,300 (18,019,636) -
Net participant loan activity .......................... 238,175 230,031 (230,279) (1,089,301)
Total transfers ...................................... 4,647,018 3,239,038 (19,421,981) (1,089,301)
NET ASSETS AT DECEMBER 31, 1995 ........................ 36,841,241 20,182,296 326,137,159 25,558,048
NET ASSETS AT DECEMBER 31, 1996 ........................ $49,397,073 $26,004,596 $303,497,931 $24,214,344
</TABLE>
7. Income Taxes
In February 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, 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 paid by Plan participants. 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,
1996 1995
<S> <C> <C>
MANAGED INCOME PORTFOLIO
FPL Group Employee Thrift Plan
EIN 59-0247775
PN 002 ............................................................................... 75.3% 76.9%
Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of
Florida Power & Light Company
EIN 59-0247775
PN 003 ............................................................................... 24.7% 23.1%
CONSERVATIVE INVESTMENT STRATEGY
FPL Group Employee Thrift Plan
EIN 59-0247775
PN 002 ............................................................................... 78.5% 80.9%
Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of
Florida Power & Light Company
EIN 59-0247775
PN 003 ............................................................................... 21.5% 19.1%
MODERATE GROWTH INVESTMENT STRATEGY
FPL Group Employee Thrift Plan
EIN 59-0247775
PN 002 ............................................................................... 72.8% 72.8%
Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of
Florida Power & Light Company
EIN 59-0247775
PN 003 ............................................................................... 27.2% 27.2%
LONG-TERM GROWTH INVESTMENT STRATEGY
FPL Group Employee Thrift Plan
EIN 59-0247775
PN 002 ............................................................................... 73.2% 74.1%
Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of
Florida Power & Light Company
EIN 59-0247775
PN 003 ............................................................................... 26.8% 25.9%
</TABLE>
<PAGE>
MANAGED INCOME PORTFOLIO
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
December 31,
1996 1995
<S> <C> <C>
ASSETS
General investments:
Value of unallocated insurance and financial institution contracts ............... $205,997,972 $193,915,147
Total assets ....................................................................... 205,997,972 193,915,147
LIABILITIES ........................................................................ - -
NET ASSETS ......................................................................... $205,997,972 $193,915,147
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
Year Ended
December 31,
1996
<S> <C>
INCOME
Contributions received from participants .......................................................... $ 5,975,112
Earnings on investments:
Interest ........................................................................................ 12,541,438
Total income ...................................................................................... 18,516,550
EXPENSES
Benefit payments to participants or beneficiaries ................................................. 21,402,437
Account maintenance fees .......................................................................... 13,954
Total expenses .................................................................................... 21,416,391
NET INCOME ........................................................................................ (2,899,841)
TRANSFERS
Transfers into fund ............................................................................... 15,804,421
Transfers out of fund ............................................................................. (821,755)
Net transfers ..................................................................................... 14,982,666
NET ASSETS AT BEGINNING OF YEAR ................................................................... 193,915,147
NET ASSETS AT END OF YEAR ......................................................................... $205,997,972
</TABLE>
<PAGE>
CONSERVATIVE INVESTMENT STRATEGY
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
December 31,
1996 1995
<S> <C> <C>
ASSETS
Receivables:
Income ........................................................................... $ 92,010 $ 97,323
General investments:
Value of unallocated insurance and financial institution contracts ............... 11,130,733 11,125,422
Mutual funds ..................................................................... 10,114,440 10,659,174
Total general investments .................................................... 21,245,173 21,784,596
Total assets ....................................................................... 21,337,183 21,881,919
LIABILITIES ........................................................................ 10,000 695
NET ASSETS ......................................................................... $21,327,183 $21,881,224
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
Year Ended
December 31,
1996
<S> <C> <C>
INCOME
Contributions received from participants ............................................ $ 524,565
Earnings on investments:
Interest .......................................................................... 703,811
Dividends ......................................................................... 747,614
Net gain (loss) on sale of assets:
Aggregate proceeds .............................................................. $6,410,821
Aggregate costs ................................................................. 6,358,772 52,049
Unrealized appreciation of assets ................................................. 133,240
Total income ........................................................................ 2,161,279
EXPENSES
Benefit payments to participants or beneficiaries ................................... 1,303,824
Account maintenance fees ............................................................ 1,592
Total expenses ...................................................................... 1,305,416
NET INCOME .......................................................................... 855,863
TRANSFERS
Transfers into fund ................................................................. 3,452,648
Transfers out of fund ............................................................... (4,862,552)
Net transfers ....................................................................... (1,409,904)
NET ASSETS AT BEGINNING OF YEAR ..................................................... 21,881,224
NET ASSETS AT END OF YEAR ........................................................... $21,327,183
</TABLE>
<PAGE>
MODERATE GROWTH INVESTMENT STRATEGY
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
December 31,
1996 1995
<S> <C> <C>
ASSETS
Receivables:
Income ........................................................................... $ 189,105 $ 163,111
Other ............................................................................ 289,362 55,111
Total receivables .............................................................. 478,467 218,222
General investments:
Value of unallocated insurance and financial institution contracts ............... 16,619,701 13,476,054
Mutual funds ..................................................................... 50,206,139 47,463,369
Total general investments .................................................... 66,825,840 60,939,423
Total assets ....................................................................... 67,304,307 61,157,645
LIABILITIES ........................................................................ 160,161 189,645
NET ASSETS ......................................................................... $67,144,146 $60,968,000
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
Year Ended
December 31,
1996
<S> <C> <C>
INCOME
Contributions received from participants ............................................ $ 3,213,382
Earnings on investments:
Interest .......................................................................... 970,575
Dividends ......................................................................... 4,193,414
Net gain (loss) on sale of assets:
Aggregate proceeds .............................................................. $11,978,129
Aggregate costs ................................................................. 11,254,884 723,245
Unrealized appreciation of assets ................................................. 1,574,752
Total income ........................................................................ 10,675,368
EXPENSES
Benefit payments to participants or beneficiaries ................................... 3,176,300
Account maintenance fees ............................................................ 5,083
Total expenses ...................................................................... 3,181,383
NET INCOME .......................................................................... 7,493,985
TRANSFERS
Transfers into fund ................................................................. 7,034,125
Transfers out of fund ............................................................... (8,351,964)
Net transfers ....................................................................... (1,317,839)
NET ASSETS AT BEGINNING OF YEAR ..................................................... 60,968,000
NET ASSETS AT END OF YEAR ........................................................... $67,144,146
</TABLE>
<PAGE>
LONG-TERM GROWTH INVESTMENT STRATEGY
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
December 31,
1996 1995
<S> <C> <C>
ASSETS
Receivables:
Income ........................................................................... $ 84,421 $ 64,372
Other ............................................................................ 144,682 9,816
Total receivables .............................................................. 229,103 74,188
General investments:
Value of unallocated insurance and financial institution contracts ............... 5,841,951 4,332,541
Mutual funds ..................................................................... 56,400,940 46,383,613
Total general investments .................................................... 62,242,891 50,716,154
Total assets ....................................................................... 62,471,994 50,790,342
LIABILITIES ........................................................................ 159,707 44,815
NET ASSETS ......................................................................... $62,312,287 $50,745,527
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
Year Ended
December 31,
1996
<S> <C> <C>
INCOME
Contributions received from participants ............................................ $ 4,610,941
Earnings on investments:
Interest .......................................................................... 332,814
Dividends ......................................................................... 4,217,739
Net gain (loss) on sale of assets:
Aggregate proceeds .............................................................. $11,213,233
Aggregate costs ................................................................. 11,191,976 21,257
Unrealized appreciation of assets ................................................. 3,525,160
Total income ........................................................................ 12,707,911
EXPENSES
Benefit payments to participants or beneficiaries ................................... 2,782,248
Account maintenance fees ............................................................ 4,983
Total expenses ...................................................................... 2,787,231
NET INCOME .......................................................................... 9,920,680
TRANSFERS
Transfers into fund ................................................................. 11,060,466
Transfers out of fund ............................................................... (9,414,386)
Net transfers ....................................................................... 1,646,080
NET ASSETS AT BEGINNING OF YEAR ..................................................... 50,745,527
NET ASSETS AT END OF YEAR ........................................................... $62,312,287
</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: 1996
ASSETS HELD FOR INVESTMENT AS OF DECEMBER 31, 1996
<TABLE>
<CAPTION>
Historic Current
Units Fund Name Price Cost Value
<S> <C> <C> <C> <C>
6,598,924.170 Fidelity Retirement Government Money Market Portfolio $ 1.00 $ 6,598,924 $ 6,598,924
1,313,651.358 Conservative Investment Strategy $12.74 13,597,575 16,735,918
3,540,105.171 Moderate Growth Investment Strategy $13.81 37,221,457 48,888,853
3,164,721.163 Long-Term Investment Strategy $14.41 34,583,634 45,603,632
155,056,749.650 FPL Managed Income Portfolio $ 1.00 155,056,750 155,056,750
1,395,767.220 Fidelity U.S. Bond Index Portfolio $10.56 14,786,142 14,739,302
3,047,577.575 Fidelity U.S. Equity Index Portfolio $26.95 60,544,978 82,132,216
865,622.425 Fidelity Magellan Fund $80.65 66,448,924 69,812,448
1,510,152.041 Fidelity OTC Portfolio $32.71 43,290,890 49,397,073
843,209.999 Fidelity Overseas Fund $30.84 24,606,905 26,004,596
18,433,387.490 FPL Company Stock Fund $12.37 148,910,070 228,021,003
6,067,277.146 FPL Company Stock Fund - LESOP $12.44 59,561,273 75,476,928
Outstanding Loan Balances (7.5% to 11.5%; 24,214,344 24,214,344
maturing 1997-2001)
Total Assets Held for Investment $689,421,866 $842,681,987
</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: 1996
TRANSACTIONS IN EXCESS OF FIVE PERCENT OF THE
CURRENT VALUE OF PLAN ASSETS FOR THE
YEAR ENDED DECEMBER 31, 1996
<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 $124,939,251 $119,089,683 258 254 -
FPL Company Stock Fund $ 79,706,450 $100,020,904 254 254 $17,168,145
Fidelity Magellan Fund $ 36,296,810 $ 34,609,842 254 253 $ (29,639)
Fidelity OTC Portfolio $ 44,079,993 $ 34,518,324 254 254 $ 1,331,744
Fidelity Overseas Fund $ 26,042,693 $ 21,579,289 254 249 $ 418,648
Fidelity U.S. Equity Index Portfolio $ 43,395,352 $ 34,540,902 253 253 $ 2,940,910
</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 26, 1997 FPL Group Employee Thrift Plan
(Name of Plan)
By: JAMES K. PETERSON
James K. Peterson
Director of Employee Selection,
Performance & Rewards
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 20, 1997 on the financial statements of the FPL
Group Employee Thrift Plan for the year ended December 31, 1996
appearing in this Annual Report on Form 11-K of FPL Group, Inc. for the
year ended December 31, 1996.
DELOITTE & TOUCHE LLP
Miami, Florida
June 26, 1997
