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
For the fiscal year ended December 31, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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 office)
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, 1999 and 1998, and the related statement of changes in net assets
available for benefits for the year ended December 31, 1999. 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 auditing standards generally
accepted in the United States of America. 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, 1999 and 1998, and the changes in net assets available for benefits for
the year ended December 31, 1999, in conformity with accounting principles
generally accepted in the United States of America.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule of assets
held for investment purposes as of December 31, 1999 is presented for the
purpose of additional analysis and is not a required part of the basic
financial statements, but is 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. This schedule is
the responsibility of the Plan's management. Such schedule has been
subjected to the auditing procedures applied in our audit of the basic 1999
financial statements and, in our opinion, is fairly stated in all material
respects when considered in relation to the basic financial statements taken
as a whole.
DELOITTE & TOUCHE LLP
Certified Public Accountants
Miami, Florida
June 26, 2000
FPL GROUP EMPLOYEE THRIFT PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE><CAPTION>
December 31,
1999 1998
<S> <C> <C>
ASSETS
Accrued interest receivable - ESOP Account ...................................... $ 1,274 $ 1,110
General investments, at fair value .............................................. 938,693,314 764,261,260
Employer securities, at fair value:
Employer securities held by the Plan .......................................... 260,453,458 366,300,945
Leveraged ESOP employer securities ............................................ 244,189,396 374,447,811
Total employer securities ................................................... 504,642,854 740,748,756
Total assets .................................................................... 1,443,337,442 1,505,011,126
LIABILITIES
Interest payable - ESOP Account ................................................. 738,747 773,925
Acquisition indebtedness of Leveraged ESOP ...................................... 228,714,332 239,605,055
Total liabilities ............................................................... 229,453,079 240,378,980
NET ASSETS AVAILABLE FOR BENEFITS ............................................... $1,213,884,363 $1,264,632,146
</TABLE>
The accompanying Notes to Financial Statements are an integral part of these
statements.
FPL GROUP EMPLOYEE THRIFT PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
<TABLE><CAPTION>
Year Ended December 31, 1999
<S> <C> <C>
INCOME
Contributions:
Received from participants ....................................................... $ 35,092,183
Noncash contributions (from employer) ............................................ 14,616,116
Total contributions ............................................................. $ 49,708,299
Earnings on investments:
Interest:
Interest-bearing cash .......................................................... 407,472
Other loans (participant loans) ................................................ 1,927,075
Total interest ............................................................... 2,334,547
Common stock dividends ........................................................... 12,629,645
Net appreciation (depreciation) in fair value of investments:
Employer securities ............................................................ (112,431,245)
Master trusts .................................................................. 42,908,020
Registered investment companies ................................................ 140,242,374
Total net appreciation in fair value of investments .......................... 70,719,149
Total income ....................................................................... 135,391,640
EXPENSES
Benefit payments to participants or beneficiaries .................................. 70,503,347
Administrative expenses ............................................................ 141,881
Total expenses ................................................................... 70,645,228
NET INCOME ......................................................................... 64,746,412
TRANSFERS
Transfers to the Plan - net ........................................................ 3,838,155
Effect of current year Leveraged ESOP activity ..................................... (119,332,350)
Total transfers from the Plan ...................................................... (115,494,195)
NET ASSETS AVAILABLE FOR BENEFITS AT DECEMBER 31, 1998 ............................. 1,264,632,146
NET ASSETS AVAILABLE FOR BENEFITS AT DECEMBER 31, 1999 ............................. $1,213,884,363
</TABLE>
The accompanying Notes to Financial Statements are an integral part of these
statements.
FPL GROUP EMPLOYEE THRIFT PLAN
NOTES TO FINANCIAL STATEMENTS
For the year ended December 31, 1999
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).
The Plan is a defined contribution plan subject to the provisions of the
Employee Retirement Income Securities Act of 1974, as amended (ERISA). The
Plan has been designated as an Employee Stock Ownership Plan. Participation
in the Plan is voluntary. During 1999, the Plan was amended to include
employees of FPL Energy Maine Operating Services, LLC. Employees (other than
union employees) are eligible to participate in the Plan after one full month
of service with FPL Group, Inc. (FPL Group or Company) or certain of its
subsidiaries or on the first day of any payroll period 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 1999 to a maximum of $10,000 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.
The Company has in place 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 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.
Although it has not expressed any intent to do so, the Company has the right
under the Plan to discontinue its contributions at any time and to terminate
the Plan subject to the provisions of ERISA. In the event of Plan
termination, participants will become 100 percent vested in their accounts.
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%. Supplemental contributions are not matched by the
Company. Contributions are subject to certain limitations.
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. For
employees of FPL Energy Maine, company matching contributions are fully
vested upon attaining six months of service as a member of the Plan.
The Plan's investment options include fourteen core funds, as well as a wide
variety of mutual funds. The core funds are comprised of eleven "mix your
own" investment options and three "pre-mixed" investment strategies. The
"mix your own" investment options include various mutual funds, a separately
managed portfolio of short- and long-term investment contracts and Common
Stock. The "pre-mixed" investment strategy options are made up of different
allocations of the "mix your own" investment options providing various
combinations of stocks and fixed income investments. Effective March 1,
2000, a new core investment option became available to participants of the
Plan.
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 7,913. 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 or may be applied to administrative expenses. 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 a minimum of $1,000 up to a
maximum of $50,000 or 50% of the vested value of the member's account,
whichever is less. The vested portion of a member's account will be pledged
as security for the loan. The rate of interest is determined quarterly
taking into account prime rate. The interest rate for member loans
outstanding at December 31, 1999 ranged from 7.25% to 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 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 Florida Power & Light Company (FPL).
Basis of Accounting
The financial statements of the Plan are prepared using 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.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets, liabilities, and changes therein,
and disclosure of contingent assets and liabilities. Actual results could
differ from those estimates.
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 Common 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. At
December 31, 1999, the contract value and fair value of investment contracts
was $205,296,000 and $201,431,000, respectively. At December 31, 1998 the
contract value and fair value of investment contracts was $200,061,000 and
$196,772,000, respectively. The average yield for the portfolio of
investment contracts was 6.29% and 6.58% for 1999 and 1998, respectively.
The crediting interest rate at December 31, 1999 and 1998 was 5.59% and
5.61%, respectively. The crediting interest rate is based on an agreed-upon
formula with the issuer, but cannot be less than zero. See Note 8.
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% 71% 29%
Accrued interest ................................................. $ 1,797 $ 1,274 $ 523
Employer securities .............................................. 344,427,419 244,189,396 100,238,023
Total assets ................................................... 344,429,216 244,190,670 100,238,546
Interest payable ................................................. 1,041,998 738,747 303,251
Acquisition indebtedness ......................................... 322,599,950 228,714,332 93,885,618
Total liabilities .............................................. 323,641,948 229,453,079 94,188,869
Net assets at December 31, 1999 .................................. $ 20,787,268 $ 14,737,591 $ 6,049,677
Contributions received from employer ............................. $ 23,864,187
Interest income .................................................. 6,526
Dividends ........................................................ 17,285,192
Net depreciation in fair value of investments .................... (155,839,259)
Total loss ..................................................... (114,683,354)
Interest expense ................................................. 32,411,511
Net loss ......................................................... (147,094,865) $(104,286,141) $(42,808,724)
Distribution of shares to plans .................................. (20,588,818) (14,616,116) (5,972,702)
Transfers to (from) the plan ..................................... - (430,093) 430,093
Effect of current year Leveraged ESOP activity on net assets ..... (167,683,683) (119,332,350) (48,351,333)
Net assets at December 31, 1998 .................................. 188,470,951 134,069,941 54,401,010
Net assets at December 31, 1999 .................................. $ 20,787,268 $ 14,737,591 $ 6,049,677
</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 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 both Common Stock held
by the ESOP Account and ESOP shares distributed to Member accounts, along
with cash contributions from FPL Group. For those dividends on shares
allocated to Member accounts used to repay the loan, additional shares, equal
in value to those dividends, will be allocated to Member accounts. In 1999,
dividends received from shares held by the ESOP and shares distributed to
Member accounts totaled approximately $17,285,000 and $5,530,000,
respectively. Cash contributed in 1999 by FPL Group for the debt service
shortfall totaled approximately $23,864,000.
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, as well
as to repay dividends on ESOP shares distributed to Member accounts for debt
service. During 1999, 496,740 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: 2000 - $1,872,600; 2001 - $3,883,000; 2002 -
$4,451,600; 2003 - $5,023,600; 2004 - $5,604,000 and thereafter -
$301,765,150.
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 1999, all
Company contributions were made in Common Stock released from the ESOP
Account.
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. Investments
Investments that represent five percent or more of the Plan's net assets
available for benefits are as follows:
December 31,
1999 1998
Moderate Growth Investment Strategy ...... $ 69,178,124 $ 58,690,323
Long-term Growth Investment Strategy ..... 81,808,867 66,918,128
FPL Managed Income Portfolio ............. 174,690,983 170,873,262
Spartan U.S. Equity Index Fund ........... 154,060,160 148,351,892
Fidelity Magellan Fund ................... 139,965,850 116,864,219
Fidelity OTC Portfolio ................... 127,745,651 72,529,468
FPL Group Company Stock Fund ............. 260,453,458 366,300,945
6. 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 and for dividends distributed directly to members.
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.
7. 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.
8. 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,
1999 1998
<S> <C> <C>
FPL MANAGED INCOME PORTFOLIO
FPL Group Employee Thrift Plan
EIN 59-0247775
PN 002 ............................................................................... 76.5% 79.5%
Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of
Florida Power & Light Company
EIN 59-0247775
PN 003 ............................................................................... 23.5% 20.5%
CONSERVATIVE INVESTMENT STRATEGY
FPL Group Employee Thrift Plan
EIN 59-0247775
PN 002 ............................................................................... 80.0% 83.3%
Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of
Florida Power & Light Company
EIN 59-0247775
PN 003 ............................................................................... 20.0% 16.7%
MODERATE GROWTH INVESTMENT STRATEGY
FPL Group Employee Thrift Plan
EIN 59-0247775
PN 002 ............................................................................... 74.1% 73.3%
Employee Thrift and Retirement Savings Plan for Bargaining Unit Employees of
Florida Power & Light Company
EIN 59-0247775
PN 003 ............................................................................... 25.9% 26.7%
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>
FPL MANAGED INCOME PORTFOLIO
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE><CAPTION>
December 31,
1999 1998
<S> <C> <C>
ASSETS
General investments:
Value of unallocated insurance and financial institution contracts ............... $228,312,304 $215,032,918
Total assets ....................................................................... 228,312,304 215,032,918
LIABILITIES ........................................................................ - -
NET ASSETS AVAILABLE FOR BENEFITS .................................................. $228,312,304 $215,032,918
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
<TABLE><CAPTION>
Year Ended
December 31,
1999
<S> <C>
INCOME
Contributions received from participants .......................................................... $ 5,085,585
Earnings on investments:
Interest ........................................................................................ 12,649,190
Total income ...................................................................................... 17,734,775
EXPENSES
Benefit payments to participants or beneficiaries ................................................. 20,498,533
Account maintenance fees .......................................................................... 7,045
Total expenses .................................................................................... 20,505,578
NET LOSS........................................................................................... (2,770,803)
TRANSFERS
Transfers into fund ............................................................................... 297,003,241
Transfers out of fund ............................................................................. (280,953,052)
Net transfers ..................................................................................... 16,050,189
NET ASSETS AVAILABLE FOR BENEFITS AT DECEMBER 31, 1998 ............................................ 215,032,918
NET ASSETS AVAILABLE FOR BENEFITS AT DECEMBER 31, 1999 ............................................ $228,312,304
</TABLE>
CONSERVATIVE INVESTMENT STRATEGY
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE><CAPTION>
December 31,
1999 1998
<S> <C> <C>
ASSETS
Receivables:
Income ........................................................................... $ 84,315 $ 87,211
General investments:
Value of unallocated insurance and financial institution contracts ............... 13,368,723 12,608,477
Mutual funds ..................................................................... 8,085,733 9,839,133
Total general investments .................................................... 21,454,456 22,447,610
Total assets ....................................................................... 21,538,771 22,534,821
LIABILITIES ........................................................................ 1,012 161
NET ASSETS AVAILABLE FOR BENEFITS .................................................. $21,537,759 $22,534,660
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
<TABLE><CAPTION>
Year Ended
December 31,
1999
<S> <C>
INCOME
Contributions received from participants .......................................................... $ 368,624
Earnings on investments:
Interest ........................................................................................ 767,871
Dividends ....................................................................................... 549,481
Net appreciation in fair value of investments ................................................... 435,388
Total income ...................................................................................... 2,121,364
EXPENSES
Benefit payments to participants or beneficiaries ................................................. 1,663,439
Account maintenance fees .......................................................................... 1,151
Total expenses .................................................................................... 1,664,590
NET INCOME ........................................................................................ 456,774
TRANSFERS
Transfers into fund ............................................................................... 5,847,965
Transfers out of fund ............................................................................. (7,301,640)
Net transfers ..................................................................................... (1,453,675)
NET ASSETS AVAILABLE FOR BENEFITS AT DECEMBER 31, 1998 ............................................ 22,534,660
NET ASSETS AVAILABLE FOR BENEFITS AT DECEMBER 31, 1999 ............................................ $21,537,759
</TABLE>
MODERATE GROWTH INVESTMENT STRATEGY
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE><CAPTION>
December 31,
1999 1998
<S> <C> <C>
ASSETS
Receivables:
Income ........................................................................... $ 189,492 $ 187,945
Other ............................................................................ 10,977 -
Total receivables .............................................................. 200,469 187,945
General investments:
Value of unallocated insurance and financial institution contracts ............... 19,944,621 18,811,810
Mutual funds ..................................................................... 73,209,864 61,272,710
Total general investments .................................................... 93,154,485 80,084,520
Total assets ....................................................................... 93,354,954 80,272,465
LIABILITIES ........................................................................ - 150,829
NET ASSETS AVAILABLE FOR BENEFITS .................................................. $93,354,954 $80,121,636
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
<TABLE><CAPTION>
Year Ended
December 31,
1999
<S> <C>
INCOME
Contributions received from participants .......................................................... $ 2,826,792
Earnings on investments:
Interest ........................................................................................ 1,148,822
Dividends ....................................................................................... 4,400,104
Net appreciation in fair value of investments ................................................... 11,713,274
Total income ...................................................................................... 20,088,992
EXPENSES
Benefit payments to participants or beneficiaries ................................................. 4,821,871
Account maintenance fees .......................................................................... 4,214
Total expenses .................................................................................... 4,826,085
NET INCOME ........................................................................................ 15,262,907
TRANSFERS
Transfers into fund ............................................................................... 19,804,481
Transfers out of fund ............................................................................. (21,834,070)
Net transfers ..................................................................................... (2,029,589)
NET ASSETS AVAILABLE FOR BENEFITS AT DECEMBER 31, 1998 ............................................ 80,121,636
NET ASSETS AVAILABLE FOR BENEFITS AT DECEMBER 31, 1999 ............................................ $ 93,354,954
</TABLE>
LONG-TERM GROWTH INVESTMENT STRATEGY
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE><CAPTION>
December 31,
1999 1998
<S> <C> <C>
ASSETS
Receivables:
Income ........................................................................... $ 101,911 $ 100,298
Other ............................................................................ 126,392 -
Total receivables .............................................................. 228,303 100,298
General investments:
Value of unallocated insurance and financial institution contracts ............... 7,008,628 6,610,050
Mutual funds ..................................................................... 104,640,528 83,547,773
Total general investments .................................................... 111,649,156 90,157,823
Total assets ....................................................................... 111,877,459 90,258,121
LIABILITIES ........................................................................ 69,815 578
NET ASSETS AVAILABLE FOR BENEFITS .................................................. $111,807,644 $ 90,257,543
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
<TABLE><CAPTION>
Year Ended
December 31,
1999
<S> <C>
INCOME
Contributions received from participants .......................................................... $ 5,057,443
Earnings on investments:
Interest ........................................................................................ 410,216
Dividends ....................................................................................... 5,864,024
Net appreciation in fair value of investments ................................................... 19,347,121
Total income ...................................................................................... 30,678,804
EXPENSES
Benefit payments to participants or beneficiaries ................................................. 3,118,556
Account maintenance fees .......................................................................... 4,748
Total expenses .................................................................................... 3,123,304
NET INCOME ........................................................................................ 27,555,500
TRANSFERS
Transfers into fund ............................................................................... 18,131,825
Transfers out of fund ............................................................................. (24,137,224)
Net transfers ..................................................................................... (6,005,399)
NET ASSETS AVAILABLE FOR BENEFITS AT DECEMBER 31, 1998 ............................................ 90,257,543
NET ASSETS AVAILABLE FOR BENEFITS AT DECEMBER 31, 1999 ............................................ $111,807,644
</TABLE>
<TABLE><CAPTION>
FORM 5500: Schedule H, 4i FLORIDA POWER & LIGHT COMPANY - EIN 59-0247775
PLAN YEAR 1999 FPL GROUP EMPLOYEE THRIFT PLAN
PLAN #002 SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT YEAR END
UNITS/SHARES PRICE HISTORICAL MARKET VALUE
FUND NAME 12/31/99 12/31/99 COST 12/31/99
-------------------- -------------- -------- --------------- -------------------
<S> <C> <C> <C> <C>
FIDELITY FUND 26,218.08 $42.61 $1,002,990.06 $1,117,152.49
FIDELITY PURITAN 2,134.85 $19.03 43,945.52 40,626.22
FIDELITY GINNIE MAE 33,537.28 $10.36 348,164.96 347,446.19
FIDELITY MAGELLAN 1,024,415.21 $136.63 97,279,659.75 139,965,850.47
FIDELITY EQUITY INC 4,955.41 $53.48 282,716.50 265,015.31
FIDELITY GROWTH CO 21,180.54 $84.30 1,515,403.22 1,785,519.83
FIDELITY INVST GR BD 84.319 $6.89 586.92 580.96
FIDELITY INTER BOND 1,172.58 $9.76 11,611.90 11,444.35
FIDELITY CAP & INC 27,061.32 $9.29 260,382.82 251,399.70
FIDELITY VALUE 1,856.17 $43.81 85,587.58 81,318.69
FIDELITY GOVT INCOME 7,684.47 $9.35 74,271.26 71,849.79
FIDELITY RETIRE GROW 5,066.75 $25.85 117,089.36 130,975.41
FIDELITY OTC PORT 1,879,441.68 $67.97 70,679,014.17 127,745,651.00
FIDELITY OVERSEAS 718,293.16 $48.01 23,616,035.92 34,485,254.73
FIDELITY EUROPE 10,900.42 $37.47 365,690.59 408,438.62
FIDELITY PAC BASIN 12,454.06 $28.74 265,434.49 357,929.68
FIDELITY REAL ESTATE 8,391.44 $14.70 132,802.49 123,354.14
FIDELITY BALANCED 49,370.57 $15.36 827,386.83 758,331.87
FIDELITY INTL GR&INC 1,962.88 $30.10 52,846.57 59,082.69
FIDELITY CAP APPREC 3,215.17 $29.87 84,720.65 96,037.02
FIDELITY CONV SEC 3,216.67 $24.28 65,266.68 78,100.71
FIDELITY CANADA 1,283.02 $19.63 25,324.32 25,185.78
FIDELITY UTILITIES 14,100.85 $25.77 356,113.68 363,378.99
FIDELITY BLUE CHIP 25,011.32 $60.11 1,340,367.62 1,503,430.53
FID ASSET MANAGER 4,237.12 $18.38 74,439.90 77,878.29
FIDELITY DISC EQUITY 565.342 $30.51 18,234.65 17,248.60
FIDELITY LOW PR STK 7,726.59 $22.64 179,796.93 174,929.91
SPARTAN 500 INDEX 3,785.59 $100.89 355,163.87 381,927.96
FIDELITY WORLDWIDE 43.413 $19.90 805.02 863.91
FIDELITY EQ INC II 6,096.44 $27.37 181,537.58 166,859.55
FID ASSET MGR GROWTH 15,669.58 $19.67 301,016.40 308,220.69
FIDELITY EMERG MRKTS 7,305.28 $12.02 68,810.62 87,809.47
FIDELITY AGGR GROWTH 168,795.29 $59.63 8,426,499.02 10,065,263.40
FIDELITY DIVERS INTL 24,569.12 $25.62 507,468.64 629,460.82
FID ASSET MGR INCOME 12.395 $12.18 151.04 150.97
FIDELITY DIVD GROWTH 51,110.96 $28.99 1,545,539.24 1,481,706.65
FIDELITY NEW MKT INC 1,564.88 $11.10 17,433.32 17,370.22
FIDELITY EXP & MULTI 6,213.27 $21.97 123,999.51 136,505.48
FIDELITY TECHNOQUANT 2,280.22 $15.82 34,170.00 36,073.11
FIDELITY GLOBAL BAL 1,926.13 $20.20 37,315.36 38,907.72
FID AGGRESSIVE INT'L 12,489.33 $20.31 211,473.54 253,658.24
FIDELITY SM CAP SEL 3,322.07 $16.09 47,012.65 53,452.03
FIDELITY MID-CAP STK 4,921.58 $21.87 96,448.19 107,634.86
FIDELITY LG-CAP STK 14,259.27 $21.57 265,006.24 307,572.49
FIDELITY CONTRA II 37,408.34 $14.91 514,895.68 557,758.32
FIDELITY SM CAP STK 6,461.02 $12.71 67,782.31 82,119.64
FIDELITY EUR CAP APP 5,517.38 $21.46 103,685.72 118,402.98
FIDELITY LATIN AMER 9,692.58 $15.91 132,008.41 154,208.98
FIDELITY JAPAN 135,566.97 $27.28 2,938,367.70 3,698,266.85
FIDELITY SE ASIA 17,525.81 $16.43 244,964.75 287,949.04
FID FREEDOM 2000 49.326 $12.99 626.68 640.74
FID FREEDOM 2010 3,619.28 $14.87 52,583.54 53,818.66
FID FREEDOM 2030 379.252 $16.88 6,287.03 6,401.77
SPTN TOTAL MKT INDEX 1,549.10 $38.13 53,163.99 59,067.15
SPTN EXTND MKT INDEX 243.069 $33.96 7,569.12 8,254.65
SPARTAN INTL INDEX 173.048 $37.67 6,164.12 6,518.71
FIDELITY SH TERM BD 1,051.32 $8.50 8,986.96 8,936.25
FIDELITY INTL BOND 605.066 $8.67 5,199.49 5,245.92
FIDELITY HIGH INCOME 56,570.71 $12.00 694,247.78 678,848.52
FIDELITY FIFTY 23,004.83 $22.81 462,962.99 524,740.22
FIDELITY RETIRE MMKT 3,214,619.80 $1.00 3,214,619.80 3,214,619.80
FIDELITY RET GOVT MM 8,064,493.68 $1.00 8,064,493.68 8,064,493.68
FID MGD INC PORT 0 $1.00 0.00 0.00
SPARTAN US EQ INDEX 2,957,576.50 $52.09 81,070,338.82 154,060,159.86
FIDELITY US BD INDEX 1,501,472.20 $10.19 15,993,317.43 15,300,001.67
FPL MANAGED INCOME* 174,690,983.29 $1.00 174,690,983.29 174,690,983.29
INVESCO TOTAL RETURN 215.274 $28.96 6,782.66 6,234.33
NB GUARDIAN TRUST 102.69 $14.14 1,602.58 1,452.03
DOMINI SOCIAL EQUITY 13,904.43 $41.89 520,008.76 582,456.49
INVESCO EQUITY INC 1,268.47 $15.25 21,357.77 19,344.15
AMR BALANCED FUND 127.817 $11.35 1,594.02 1,450.73
AMR LARGE CAP VALUE 2.98 $14.42 48.73 42.97
PIMCO TOT RETURN ADM 26,725.64 $9.90 268,924.36 264,583.82
TMPL FOREIGN SM CO A 2,789.77 $15.33 41,664.31 42,767.17
MSDW EQUITY GROWTH B 197.856 $24.90 4,870.91 4,926.62
MUTUAL DISCOVERY A 593.614 $21.00 11,442.72 12,465.89
BARON GROWTH 3,043.50 $33.68 89,954.65 102,504.90
BARON ASSET FUND 2,511.67 $58.77 140,514.68 147,611.07
BRANDYWINE FUND 337,347.11 $42.88 12,122,932.12 14,465,444.06
CALVERT NEWVIS SM CP 244.081 $16.67 3,394.44 4,068.82
UAM/FPA CRESCENT 20.908 $12.95 300.84 270.76
UAM/RHJ SMALL CAP 5,837.25 $15.77 88,852.26 92,053.43
PBHG EMERGING GROWTH 357.909 $34.25 10,913.83 12,258.41
ARIEL FUND 414.044 $31.11 15,867.05 12,880.91
ARIEL APPRECIATION 2,553.32 $30.97 84,594.72 79,076.24
ARIEL PREMIER BOND 8,294.98 $9.75 81,541.66 80,876.04
ALGER CAP APPRECIATN 670,030.50 $21.19 11,122,489.38 14,197,946.38
ALGER MID CAP GROWTH 68,163.23 $14.41 859,700.84 982,232.21
ALGER SMALL CAP RTM 19,674.74 $28.47 475,588.87 560,139.92
DREY FNDRS GROWTH F 2,601.36 $23.87 57,359.92 62,094.39
DREY FNDRS MC GRTH F 3,868.86 $8.68 30,702.47 33,581.73
DREY FNDRS WW GRTH F 1,970.71 $25.17 45,890.27 49,602.86
DREY FNDRS PASSPRT F 18,734.60 $22.93 398,941.00 429,584.44
FRANKLIN SM CAP GRTH 6,856.61 $44.13 229,035.27 302,582.18
PBHG GROWTH FUND 700.364 $47.38 28,610.56 33,183.26
INVESCO DYNAMICS 17,304.94 $25.86 372,937.41 447,505.78
INVESCO SM CO GROWTH 4,461.34 $18.62 76,814.03 83,070.20
INVESCO BL CHIP GRTH 41,555.91 $8.11 295,358.27 337,018.44
INVESCO HIGH YIELD 10,739.07 $6.43 69,744.79 69,052.19
INVESCO SEL INCOME 13,574.53 $6.07 84,671.07 82,397.41
JANUS FLEX INCOME 21,271.90 $9.35 200,652.23 198,892.22
TEMPLETON FOREIGN A 470,424.73 $11.22 4,893,729.39 5,278,165.43
DREY FNDRS DISCVRY F 5,231.64 $40.86 195,848.59 213,764.93
MORGST GLOBAL EQTY B 8,262.97 $18.20 165,075.44 150,385.98
MAS HIGH YIELD ADV 2,949.28 $8.67 26,416.22 25,570.26
MAS MID CAP GRTH ADV 8,382.37 $31.00 248,548.37 259,853.46
MAS VALUE ADVISER 419.621 $12.11 6,409.10 5,081.62
MSDWI SM CO GROWTH B 10,317.36 $13.02 109,498.97 134,331.99
MORGST ACTIVE INTL B 1,000.73 $14.41 12,652.50 14,420.48
MORGSTAN EMER MKTS B 12,075.47 $19.23 173,497.92 232,211.28
MUTUAL SHARES CL A 1,722.13 $20.38 35,195.63 35,097.07
NB FOCUS TRUST 35.445 $27.33 888.19 968.72
NB GENESIS TRUST 3,489.19 $21.04 70,432.55 73,412.51
NB MANHATTAN TRUST 552.068 $20.63 10,783.31 11,389.16
NB PARTNERS TRUST 768.401 $17.98 13,726.17 13,815.85
PIMCO CAP APPR ADMIN 2,680.95 $24.87 66,811.38 66,675.13
PIMCO MID CAP ADMIN 76.992 $25.87 1,786.24 1,991.78
PIMCO GLOBAL BOND AD 648.914 $9.19 5,955.92 5,963.51
PIMCO HIGH YIELD ADM 29,144.54 $10.68 316,364.86 311,263.66
PIMCO LOW DUR ADM 27.535 $9.84 272.65 270.96
PIMCO LT US GOVT ADM 7,892.07 $9.36 76,788.79 73,869.76
STRONG ADVANTAGE 2,544.70 $9.88 25,275.08 25,141.67
STRONG SHORTTERM BND 1,274.48 $9.38 11,967.29 11,954.58
STRONG GROWTH FUND 16,512.92 $35.66 463,298.35 588,850.74
STRONG OPPORTUNITY 1,845.60 $44.69 86,175.12 82,479.91
STRONG LG CAP GROWTH 7,153.13 $47.10 307,450.44 336,912.24
STRONG GOVT SECURITY 1,411.37 $10.08 14,597.92 14,226.59
TEMPLETON DEV MKTS A 1,746.36 $15.61 23,208.89 27,260.65
TEMPLETON GROWTH A 4,312.02 $19.96 83,160.99 86,067.85
TRP EQUITY INCOME 371,557.49 $24.81 9,807,552.83 9,218,341.40
TEMPLETON WORLD A 9,115.57 $18.69 163,900.84 170,370.07
USAA INCOME FUND 3,080.70 $11.30 36,029.43 34,811.89
USAA GROWTH FUND 195.73 $23.99 4,648.45 4,695.56
USAA EMERGING MKTS 2,860.41 $10.85 25,000.00 31,035.47
WARBURG CAP APP COM 8,404.70 $29.34 211,858.80 246,593.97
WARBURG EMER GRTH 2.161 $49.86 102.60 107.75
WARBURG VALUE COMMON 183.604 $14.60 2,633.13 2,680.60
WARBURG INTL EQTY 7,083.40 $27.75 185,760.77 196,564.40
WARBURG SM CO VALUE 3,379.39 $12.92 45,533.41 43,661.72
FPL CONS INV STRGY* 996,180.73 $17.30 11,619,205.97 17,233,926.57
MODERATE GRWTH STRGY* 2,935,007.39 $23.57 36,632,016.44 69,178,124.25
LONG-TERM STRGY* 2,975,950.06 $27.49 41,538,723.47 81,808,867.05
FPL GROUP STOCK* 15,953,734.94 $11.55 154,798,084.38 184,265,638.52
FPL GROUP STK LESOP* 7,383,459.75 $11.61 86,226,199.11 85,721,967.66
LEVERAGED ESOP EMPLOYER
SECURITIES* 5,703,693.92 $42.81 165,407,123.67 244,189,395.93
PARTICIPANT LOAN BALANCES
(7.25% TO 9.75%;
MATURING 2000-2004) 23,108,049.21 23,108,049.21
TOTAL ASSETS HELD FOR INVESTMENT PURPOSES $1,064,782,883.10 $1,443,336,168.48
*PARTY-IN-INTEREST
</TABLE>
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, 2000
FPL Group Employee Thrift Plan
(Name of Plan)
By: JAMES K. PETERSON
-------------------------
James K. Peterson
Director, Human Resources Centers of Expertise
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, Registration Statement
No. 333-30697 on Form S-8 and Registration Statement No. 333-87869 on Form S-
8 of FPL Group, Inc. of our report dated June 26, 2000, appearing in this
Annual Report on Form 11-K of FPL Group Employee Thrift Plan for the year
ended December 31, 1999.
DELOITTE & TOUCHE LLP
Miami, Florida
June 26, 2000
