<PAGE> 1
SUPPLEMENT DATED JANUARY 1, 2001
to
PROSPECTUS DATED MAY 1, 2000
for
Flexible Premium Variable Universal Life Insurance Policy
MONY Life Insurance Company of America
MONY America Variable Account L
Effective January 1, 2001 this Supplement updates certain information contained
in your Prospectus. Please read it and keep it with your prospectus for future
reference.
1. THE DESCRIPTION OF THE MANAGED PORTFOLIO ON PAGE 18 IS AMENDED TO READ
AS FOLLOWS:
<TABLE>
<S> <C> <C>
--------------------------------------------------------------------------------------------
PORTFOLIO AND INVESTMENT
SUB-ADVISER INVESTMENT ADVISER FEE SUB-INVESTMENT ADVISER FEE
--------------------------------------------------------------------------------------------
MANAGED PORTFOLIO Annual rate of 0.80% of the Wellington Management
Wellington Management first $400 million, 0.75% of Company's fee for the assets
Company, LLP and Sanford C. the next $400 million and of the portfolio it manages
Bernstein & Co., LLC 0.70% in excess of $800 is an annual rate of 0.40%
million of the average daily up to $500 million, 0.35% of
net assets the next $500 million, 0.30%
of the next $1 billion and
0.25% in excess of $2
billion of the portfolio's
average daily net assets.
Sanford C. Bernstein & Co.'s
fee for the assets of the
portfolio it manages is an
annual rate of 0.40% up to
$10 million, 0.30% from $10
million to $50 million,
0.20% from $50 million to
$100 million, and 0.10% in
excess of $100 million of
the portfolio's average
daily net assets.
--------------------------------------------------------------------------------------------
</TABLE>
Form No. 14165 SL (Supp 1/01/01) Registration No. 33-82570
<PAGE> 2
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 3
The financial statements that follow supplement the Financial Statements
and Notes to Financial Statements found beginning on page F-1 of the Flexible
Premium Variable Universal Life Insurance Policy Prospectus Portfolio dated May
1, 2000.
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
With respect to MONY America Variable Account L:
Statement of assets and liabilities as of September 30,
2000 (unaudited)....................................... F-2
Statement of operations for the nine months ended
September 30, 2000 (unaudited)......................... F-5
Statement of changes in net assets for the periods ended
September 30, 2000 (unaudited) and December 31, 1999... F-9
Notes to financial statements (unaudited)................. F-13
With respect to MONY Life Insurance Company of America:
Unaudited interim condensed consolidated balance sheets as
of September 30, 2000 and December 31, 1999............ F-16
Unaudited interim condensed consolidated statements of
income and comprehensive income for the three-month
periods ended September 30, 2000 and 1999.............. F-17
Unaudited interim condensed consolidated statements of
income and comprehensive income for the nine-month
periods ended September 30, 2000 and 1999.............. F-18
Unaudited interim condensed consolidated statement of
changes in shareholders' equity for the nine-month
period ended September 30, 2000........................ F-19
Unaudited interim condensed consolidated statements of
cash flows for the nine-month periods ended September
30, 2000 and 1999...................................... F-20
Notes to unaudited interim condensed consolidated
financial statements................................... F-21
</TABLE>
F-1
<PAGE> 4
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
STRATEGIST
------------------------------------------------------------------------------
MONY SERIES FUND, INC.
------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Shares held in respective Funds............. 33,557 34,586 12,703 4,314 73,440 56,503
========== ========= ======== ======== ========== ========
Investments at cost in respective Funds..... $1,099,494 $ 756,892 $134,862 $ 54,353 $1,360,317 $ 56,503
========== ========= ======== ======== ========== ========
Investments in respective Funds at net asset
value..................................... $1,260,721 $ 686,192 $135,032 $ 53,886 $1,396,827 $ 56,503
Amount due from MONY America................ 46 0 0 0 83 37
Amount due from respective Funds............ 26 8 14 1 128 13
---------- --------- -------- -------- ---------- --------
Total assets................................ 1,260,793 686,200 135,046 53,887 1,397,038 56,553
---------- --------- -------- -------- ---------- --------
LIABILITIES
Amount due to MONY America.................. 2,280 1,167 250 94 2,609 111
Amount due to respective Funds.............. 46 0 0 0 83 37
---------- --------- -------- -------- ---------- --------
Total liabilites............................ 2,326 1,167 250 94 2,692 148
---------- --------- -------- -------- ---------- --------
Net assets.................................. $1,258,467 $ 685,033 $134,796 $ 53,793 $1,394,346 $ 56,405
========== ========= ======== ======== ========== ========
Net assets consist of:
Contractholders' net payments............. $ 93,882 $(203,531) $(46,782) $(71,054) $ (282,375) $(29,136)
Undistributed net investment income....... 661,535 687,054 185,153 110,651 1,184,029 85,541
Accumulated net realized gain (loss) on
investments............................. 341,823 272,210 (3,745) 14,663 456,182 0
Net unrealized appreciation (depreciation)
of investments.......................... 161,227 (70,700) 170 (467) 36,510 0
---------- --------- -------- -------- ---------- --------
Net assets.................................. $1,258,467 $ 685,033 $134,796 $ 53,793 $1,394,346 $ 56,405
========== ========= ======== ======== ========== ========
Number of units outstanding*................ 13,712 9,841 5,159 1,612 22,532 2,765
---------- --------- -------- -------- ---------- --------
Net asset value per unit outstanding*....... $ 91.78 $ 69.61 $ 26.13 $ 33.38 $ 61.88 $ 20.40
========== ========= ======== ======== ========== ========
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-2
<PAGE> 5
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
MONYEQUITY MASTER
---------------------------------------------------
MONY SERIES FUND, INC.
---------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ---------- ----------
<S> <C> <C> <C> <C>
ASSETS
Shares held in respective Funds.... 71,358 136,199 86,943 3,347,134
======== ========== ======== ==========
Investments at cost in respective
Funds............................ $780,423 $1,725,300 $947,352 $3,347,134
======== ========== ======== ==========
Investments in respective Funds at
net asset value.................. $758,540 $1,701,124 $946,806 $3,347,134
Amount due from MONY America....... 12 492 1,043 431
Amount due from respective Funds... 1,279 2,619 125 1,413
-------- ---------- -------- ----------
Total assets....................... 759,831 1,704,235 947,974 3,348,978
-------- ---------- -------- ----------
LIABILITIES
Amount due to MONY America......... 2,865 6,270 2,120 8,790
Amount due to respective Funds..... 12 492 1,043 431
-------- ---------- -------- ----------
Total liabilites................... 2,877 6,762 3,163 9,221
-------- ---------- -------- ----------
Net assets......................... $756,954 $1,697,473 $944,811 $3,339,757
======== ========== ======== ==========
Net assets consist of:
Contractholders' net payments.... $698,451 $1,475,944 $831,127 $2,627,266
Undistributed net investment
income (loss).................. 90,664 276,902 93,406 712,491
Accumulated net realized gain
(loss) on investments.......... (10,278) (31,197) 20,824 0
Net unrealized appreciation
(depreciation) of
investments.................... (21,883) (24,176) (546) 0
-------- ---------- -------- ----------
Net assets......................... $756,954 $1,697,473 $944,811 $3,339,757
======== ========== ======== ==========
Number of units outstanding*....... 57,505 115,171 72,113 260,200
-------- ---------- -------- ----------
Net asset value per unit
outstanding*..................... $ 13.16 $ 14.74 $ 13.10 $ 12.84
======== ========== ======== ==========
<CAPTION>
MONYEQUITY MASTER
----------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
----------------------------------------------------------
SMALL COMPANY INTERNATIONAL
EQUITY VALUE MANAGED GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
ASSETS
Shares held in respective Funds.... 1,544,700 1,134,418 4,320,274 1,850,964
=========== =========== ============ ===========
Investments at cost in respective
Funds............................ $57,366,030 $32,406,657 $143,316,685 $13,744,038
=========== =========== ============ ===========
Investments in respective Funds at
net asset value.................. $52,828,744 $29,676,378 $102,520,104 $13,160,352
Amount due from MONY America....... 6,490 2,818 14,500 1,099
Amount due from respective Funds... 30,604 14,327 47,404 9,375
----------- ----------- ------------ -----------
Total assets....................... 52,865,838 29,693,523 102,582,008 13,170,826
----------- ----------- ------------ -----------
LIABILITIES
Amount due to MONY America......... 146,207 79,886 275,245 38,805
Amount due to respective Funds..... 6,490 2,818 14,500 1,099
----------- ----------- ------------ -----------
Total liabilites................... 152,697 82,704 289,745 39,904
----------- ----------- ------------ -----------
Net assets......................... $52,713,141 $29,610,819 $102,292,263 $13,130,922
=========== =========== ============ ===========
Net assets consist of:
Contractholders' net payments.... $35,483,405 $21,490,788 $ 78,401,604 $10,720,307
Undistributed net investment
income (loss).................. 17,066,597 8,601,757 61,808,199 1,864,398
Accumulated net realized gain
(loss) on investments.......... 4,700,425 2,248,553 2,879,041 1,129,903
Net unrealized appreciation
(depreciation) of
investments.................... (4,537,286) (2,730,279) (40,796,581) (583,686)
----------- ----------- ------------ -----------
Net assets......................... $52,713,141 $29,610,819 $102,292,263 $13,130,922
=========== =========== ============ ===========
Number of units outstanding*....... 1,816,001 1,192,086 4,376,542 689,463
----------- ----------- ------------ -----------
Net asset value per unit
outstanding*..................... $ 29.03 $ 24.84 $ 23.37 $ 19.05
=========== =========== ============ ===========
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes
See notes to financial statements.
F-3
<PAGE> 6
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
MONY EQUITY MASTER
------------------------------------------------------------------------------------------
FIDELITY VARIABLE
INSURANCE
ENTERPRISE ACCUMULATION TRUST PRODUCTS FUNDS
--------------------------------------------------- DREYFUS -----------------------
HIGH YIELD GROWTH AND CAPITAL STOCK VIP VIP II
BOND GROWTH INCOME APPRECIATION INDEX GROWTH CONTRAFUND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ------------ ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Shares held in respective Funds.... 853,685 410,819 242,427 191,750 77,930 45,113 66,905
========== ========== ========== ========== ========== ========== ==========
Investments at cost in respective
Funds............................ $4,390,051 $2,561,372 $1,548,742 $1,529,980 $2,998,865 $2,297,010 $1,670,621
========== ========== ========== ========== ========== ========== ==========
Investments in respective Funds at
net asset value.................. $4,080,614 $2,366,318 $1,536,989 $1,512,911 $2,919,291 $2,238,513 $1,695,383
Amount due from MONY America....... 236 206 286 218 130 102 345
Amount due from respective Funds... 10,308 391 291 309 270 358 185
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total assets....................... 4,091,158 2,366,915 1,537,566 1,513,438 2,919,691 2,238,973 1,695,913
---------- ---------- ---------- ---------- ---------- ---------- ----------
LIABILITIES
Amount due to MONY America......... 19,176 4,323 2,782 2,664 4,178 3,756 2,931
Amount due to respective Funds..... 236 206 286 218 130 102 345
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total liabilites................... 19,412 4,529 3,068 2,882 4,308 3,858 3,276
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net assets......................... $4,071,746 $2,362,386 $1,534,498 $1,510,556 $2,915,383 $2,235,115 $1,692,637
========== ========== ========== ========== ========== ========== ==========
Net assets consist of:
Contractholders' net payments.... $3,607,438 $2,540,302 $1,544,054 $1,455,723 $2,988,146 $2,289,318 $1,669,544
Undistributed net investment
income (loss).................. 1,023,060 18,187 1,072 67,700 5,674 (3,614) (2,960)
Accumulated net realized gain
(loss) on investments.......... (249,315) (1,049) 1,125 4,202 1,137 7,908 1,291
Net unrealized appreciation
(depreciation) of
investments.................... (309,437) (195,054) (11,753) (17,069) (79,574) (58,497) 24,762
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net assets......................... $4,071,746 $2,362,386 $1,534,498 $1,510,556 $2,915,383 $2,235,115 $1,692,637
========== ========== ========== ========== ========== ========== ==========
Number of units outstanding*....... 271,395 258,275 151,800 146,454 298,375 230,100 167,204
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net asset value per unit
outstanding*..................... $ 15.00 $ 9.15 $ 10.11 $ 10.31 $ 9.77 $ 9.71 $ 10.12
=========== ========== ========== ========== ========== ========== ==========
<CAPTION>
MONY EQUITY MASTER
-------------------------
JANUS ASPEN SERIES FUND
-------------------------
CAPITAL WORLDWIDE
APPRECIATION GROWTH
SUBACCOUNT SUBACCOUNT
------------ ----------
<S> <C> <C>
ASSETS
Shares held in respective Funds.... 113,862 904,245
========== ==========
Investments at cost in respective
Funds............................ $3,641,773 $4,202,961
========== ==========
Investments in respective Funds at
net asset value.................. $3,713,042 $3,839,429
Amount due from MONY America....... 316 260
Amount due from respective Funds... 5,952 375
---------- ----------
Total assets....................... 3,719,310 3,840,064
---------- ----------
LIABILITIES
Amount due to MONY America......... 12,542 6,652
Amount due to respective Funds..... 316 260
---------- ----------
Total liabilites................... 12,858 6,912
---------- ----------
Net assets......................... $3,706,452 $3,833,152
========== ==========
Net assets consist of:
Contractholders' net payments.... $3,615,824 $4,000,056
Undistributed net investment
income (loss).................. 13,246 198,824
Accumulated net realized gain
(loss) on investments.......... 6,113 (2,196)
Net unrealized appreciation
(depreciation) of
investments.................... 71,269 (363,532)
---------- ----------
Net assets......................... $3,706,452 $3,833,152
========== ==========
Number of units outstanding*....... 374,034 415,093
---------- ----------
Net asset value per unit
outstanding*..................... $ 9.91 $ 9.23
========== ==========
</TABLE>
---------------
* Units outstanding have been rounded for presentation purposes
See notes to financial statements.
F-4
<PAGE> 7
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
STRATEGIST
------------------------------------------------------------------------------
MONY SERIES FUND, INC.
------------------------------------------------------------------------------
EQUITY EQUITY INTERMEDIATE LONG TERM MONEY
GROWTH INCOME TERM BOND BOND DIVERSIFIED MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------ ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Dividend income.................... $ 0 $ 12,376 $ 8,648 $4,061 $ 5,766 $2,554
Distribution from capital gains.... 286,539 102,023 0 0 241,549 0
Mortality and expense risk
charges.......................... (5,870) (3,082) (624) (251) (6,480) (262)
--------- --------- ------- ------ --------- ------
Net investment income.............. 280,669 111,317 8,024 3,810 240,835 2,292
--------- --------- ------- ------ --------- ------
Realized and unrealized gain (loss)
on investments:
Net realized gain (loss) on
investments................... 57,441 15,089 510 (515) 45,236 0
Net change in unrealized
appreciation (depreciation) of
investments................... (369,161) (125,342) (2,952) 1,063 (302,225) 0
--------- --------- ------- ------ --------- ------
Net realized and unrealized gain
(loss) on investments............ (311,720) (110,253) (2,442) 548 (256,989) 0
--------- --------- ------- ------ --------- ------
Net increase (decrease) in net
assets resulting from
operations....................... $ (31,051) $ 1,064 $ 5,582 $4,358 $ (16,154) $2,292
========= ========= ======= ====== ========= ======
</TABLE>
See notes to financial statements.
F-5
<PAGE> 8
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
MONYEQUITY MASTER
-------------------------------------------------------------
MONY SERIES FUND, INC.
-------------------------------------------------------------
INTERMEDIATE LONG TERM GOVERNMENT MONEY
TERM BOND BOND SECURITIES MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ------------- ------------- -------------
FOR THE NINE FOR THE NINE FOR THE NINE FOR THE NINE
MONTHS ENDED MONTHS ENDED MONTHS ENDED MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
2000 2000 2000 2000
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Dividend income................................. $ 44,152 $113,998 $50,260 $172,628
Distribution from capital gains................. 0 0 13 0
Mortality and expense risk charges.............. (4,144) (9,291) (5,107) (22,247)
-------- -------- ------- --------
Net investment income........................... 40,008 104,707 45,166 150,381
-------- -------- ------- --------
Realized and unrealized gain (loss) on
investments:
Net realized gain (loss) on investments....... (12,672) (76,731) (2,703) 0
Net change in unrealized appreciation of
investments................................ 1,333 101,073 3,587 0
-------- -------- ------- --------
Net realized and unrealized gain (loss) on
investments................................... (11,339) 24,342 884 0
-------- -------- ------- --------
Net increase in net assets resulting from
operations.................................... $ 28,669 $129,049 $46,050 $150,381
======== ======== ======= ========
</TABLE>
See notes to financial statements.
F-6
<PAGE> 9
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
MONYEQUITY MASTER
----------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATIONTRUST
----------------------------------------------------------------------------------------------
SMALL COMPANY INTERNATIONAL HIGH YIELD
EQUITY VALUE MANAGED GROWTH BOND GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ------------- ------------- ------------- ------------- --------------
FOR THE PERIOD
FOR THE NINE FOR THE NINE FOR THE NINE FOR THE NINE FOR THE NINE MAY 02, 2000**
MONTHS ENDED MONTHS ENDED MONTHS ENDED MONTHS ENDED MONTHS ENDED THROUGH
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
2000 2000 2000 2000 2000 2000
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
------------- ------------- ------------- ------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Dividend income.................... $ 343,589 $ 43,110 $ 2,140,699 $ 25,968 $ 291,136 $ 2,346
Distribution from capital gains.... 12,378,805 5,532,684 33,183,918 1,263,413 0 20,108
Mortality and expense risk
charges.......................... (284,431) (165,976) (608,765) (78,754) (22,908) (4,267)
----------- ----------- ------------ ----------- --------- ---------
Net investment income.............. 12,437,963 5,409,818 34,715,852 1,210,627 268,228 18,187
----------- ----------- ------------ ----------- --------- ---------
Realized and unrealized gain (loss)
on investments:
Net realized gain (loss) on
investments.................... 1,640,715 451,860 (6,836,655) 679,555 (200,075) (1,049)
Net change in unrealized
depreciation of investments.... (7,026,060) (5,290,356) (29,044,032) (4,284,466) (31,228) (195,054)
----------- ----------- ------------ ----------- --------- ---------
Net realized and unrealized loss on
investments...................... (5,385,345) (4,838,496) (35,880,687) (3,604,911) (231,303) (196,103)
----------- ----------- ------------ ----------- --------- ---------
Net increase (decrease) in net
assets resulting from
operations....................... $ 7,052,618 $ 571,322 $ (1,164,835) $(2,394,284) $ 36,925 $(177,916)
=========== =========== ============ =========== ========= =========
<CAPTION>
MONYEQUITY MASTER
-------------------------------
ENTERPRISE ACCUMULATIONTRUST
-------------------------------
GROWTH AND CAPITAL
INCOME APPRECIATION
SUBACCOUNT SUBACCOUNT
-------------- --------------
FOR THE PERIOD FOR THE PERIOD
MAY 03, 2000** MAY 03, 2000**
THROUGH THROUGH
SEPTEMBER 30, SEPTEMBER 30,
2000 2000
(UNAUDITED) (UNAUDITED)
-------------- --------------
<S> <C> <C>
Dividend income.................... $ 3,761 $ 0
Distribution from capital gains.... 46 70,288
Mortality and expense risk
charges.......................... (2,735) (2,588)
-------- --------
Net investment income.............. 1,072 67,700
-------- --------
Realized and unrealized gain (loss)
on investments:
Net realized gain (loss) on
investments.................... 1,125 4,202
Net change in unrealized
depreciation of investments.... (11,753) (17,069)
-------- --------
Net realized and unrealized loss on
investments...................... (10,628) (12,867)
-------- --------
Net increase (decrease) in net
assets resulting from
operations....................... $ (9,556) $ 54,833
======== ========
</TABLE>
---------------
** Commencement of operations.
See notes to financial statements.
F-7
<PAGE> 10
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF OPERATIONS (CONTINUED)
<TABLE>
<CAPTION>
MONY EQUITY MASTER
----------------------------------------------------------------------------------
FIDELITY VARIABLE INSURANCE
PRODUCTS FUNDS JANUS ASPEN SERIES FUND
DREYFUS ------------------------------- -------------------------------
STOCK VIP VIP II CAPITAL WORLDWIDE
INDEX GROWTH CONTRAFUND APPRECIATION GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------- -------------- -------------- -------------- --------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
MAY 02, 2000** MAY 02, 2000** MAY 03, 2000** MAY 03, 2000** MAY 02, 2000**
THROUGH THROUGH THROUGH THROUGH THROUGH
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
2000 2000 2000 2000 2000
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Dividend income.............. $ 9,794 $ 0 $ 0 $19,536 $ 148,386
Distribution from capital
gains...................... 0 0 0 958 57,338
Mortality and expense risk
charges.................... (4,120) (3,614) (2,960) (7,248) (6,900)
-------- -------- ------- ------- ---------
Net investment income
(loss)..................... 5,674 (3,614) (2,960) 13,246 198,824
-------- -------- ------- ------- ---------
Realized and unrealized gain
(loss) on investments:
Net realized gain (loss) on
investments............. 1,137 7,908 1,291 6,113 (2,196)
Net change in unrealized
appreciation
(depreciation) of
investments............. (79,574) (58,497) 24,762 71,269 (363,532)
-------- -------- ------- ------- ---------
Net realized and unrealized
gain (loss) on
investments................ (78,437) (50,589) 26,053 77,382 (365,728)
-------- -------- ------- ------- ---------
Net increase (decrease) in
net assets resulting from
operations................. $(72,763) $(54,203) $23,093 $90,628 $(166,904)
======== ======== ======= ======= =========
</TABLE>
---------------
** Commencement of operations.
See notes to financial statements.
F-8
<PAGE> 11
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
STRATEGIST
-----------------------------------------------------------
MONY SERIES FUND, INC
-----------------------------------------------------------
EQUITY EQUITY
GROWTH INCOME
SUBACCOUNT SUBACCOUNT
---------------------------- ----------------------------
FOR THE NINE FOR THE NINE
MONTHS ENDED FOR THE MONTHS ENDED FOR THE
SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED
2000 DECEMBER 31, 2000 DECEMBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
From operations:
Net investment income.............................. $ 280,669 $ 79,557 $ 111,317 $ 134,056
Net realized gain (loss) on investments............ 57,441 28,326 15,089 31,610
Net change in unrealized appreciation
(depreciation) of investments.................... (369,161) 251,887 (125,342) (108,424)
---------- ---------- --------- ---------
Net increase (decrease) in net assets resulting from
operations......................................... (31,051) 359,770 1,064 57,242
---------- ---------- --------- ---------
From unit transactions:
Net proceeds from the issuance of units............ 73,589 51,062 17,672 33,394
Net asset value of units redeemed or used to meet
contract obligations............................. (107,266) (48,972) (89,993) (93,401)
---------- ---------- --------- ---------
Net increase (decrease) from unit transactions...... (33,677) 2,090 (72,321) (60,007)
---------- ---------- --------- ---------
Net increase (decrease) in net assets............... (64,728) 361,860 (71,257) (2,765)
Net assets beginning of period...................... 1,323,195 961,335 756,290 759,055
---------- ---------- --------- ---------
Net assets end of period*........................... $1,258,467 $1,323,195 $ 685,033 $ 756,290
========== ========== ========= =========
Unit transactions:
Units outstanding beginning of period............... 14,055 14,007 10,955 11,808
Units issued during the period...................... 805 670 263 497
Units redeemed during the period.................... (1,148) (622) (1,377) (1,350)
---------- ---------- --------- ---------
Units outstanding end of period..................... 13,712 14,055 9,841 10,955
========== ========== ========= =========
---------------
* Includes undistributed net investment income
of:................................................ $ 661,535 $ 380,866 $ 687,054 $ 575,737
========== ========== ========= =========
<CAPTION>
STRATEGIST
-----------------------------------------------------------
MONY SERIES FUND, INC
-----------------------------------------------------------
INTERMEDIATE LONG TERM
TERM BOND BOND
SUBACCOUNT SUBACCOUNT
---------------------------- ----------------------------
FOR THE NINE FOR THE NINE
MONTHS ENDED FOR THE MONTHS ENDED FOR THE
SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED
2000 DECEMBER 31, 2000 DECEMBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
From operations:
Net investment income.............................. $ 8,024 $ 6,098 $ 3,810 $ 3,252
Net realized gain (loss) on investments............ 510 613 (515) 2,745
Net change in unrealized appreciation
(depreciation) of investments.................... (2,952) (7,233) 1,063 (11,228)
-------- -------- -------- --------
Net increase (decrease) in net assets resulting from
operations......................................... 5,582 (522) 4,358 (5,231)
-------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of units............ 7,475 10,042 2,639 5,202
Net asset value of units redeemed or used to meet
contract obligations............................. (20,952) (17,325) (11,249) (12,760)
-------- -------- -------- --------
Net increase (decrease) from unit transactions...... (13,477) (7,283) (8,610) (7,558)
-------- -------- -------- --------
Net increase (decrease) in net assets............... (7,895) (7,805) (4,252) (12,789)
Net assets beginning of period...................... 142,691 150,496 58,045 70,834
-------- -------- -------- --------
Net assets end of period*........................... $134,796 $142,691 $ 53,793 $ 58,045
======== ======== ======== ========
Unit transactions:
Units outstanding beginning of period............... 5,687 5,977 1,884 2,112
Units issued during the period...................... 306 400 82 163
Units redeemed during the period.................... (834) (690) (354) (391)
-------- -------- -------- --------
Units outstanding end of period..................... 5,159 5,687 1,612 1,884
======== ======== ======== ========
---------------
* Includes undistributed net investment income
of:................................................ $185,153 $177,129 $110,651 $106,841
======== ======== ======== ========
<CAPTION>
STRATEGIST
----------------------------
MONY SERIES FUND, INC
----------------------------
DIVERSIFIED
SUBACCOUNT
----------------------------
FOR THE NINE
MONTHS ENDED FOR THE
SEPTEMBER 30, YEAR ENDED
2000 DECEMBER 31,
(UNAUDITED) 1999
------------- ------------
<S> <C> <C>
From operations:
Net investment income.............................. $ 240,835 $ 155,350
Net realized gain (loss) on investments............ 45,236 81,348
Net change in unrealized appreciation
(depreciation) of investments.................... (302,225) 118,209
---------- ----------
Net increase (decrease) in net assets resulting from
operations......................................... (16,154) 354,907
---------- ----------
From unit transactions:
Net proceeds from the issuance of units............ 51,177 67,724
Net asset value of units redeemed or used to meet
contract obligations............................. (119,563) (178,570)
---------- ----------
Net increase (decrease) from unit transactions...... (68,386) (110,846)
---------- ----------
Net increase (decrease) in net assets............... (84,540) 244,061
Net assets beginning of period...................... 1,478,886 1,234,825
---------- ----------
Net assets end of period*........................... $1,394,346 $1,478,886
========== ==========
Unit transactions:
Units outstanding beginning of period............... 23,596 25,565
Units issued during the period...................... 827 1,275
Units redeemed during the period.................... (1,891) (3,244)
---------- ----------
Units outstanding end of period..................... 22,532 23,596
========== ==========
---------------
* Includes undistributed net investment income
of:................................................ $1,184,029 $ 943,194
========== ==========
</TABLE>
See notes to financial statements.
F-9
<PAGE> 12
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
STRATEGIST MONY EQUITY MASTER
---------------------------- --------------------------------------------
MONY SERIES FUND, INC
---------------------------------------------------------------------------
MONEY INTERMEDIATE TERM LONG TERM
MARKET BOND BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------- ---------------------------- -------------
FOR THE NINE FOR THE NINE FOR THE NINE
MONTHS ENDED FOR THE MONTHS ENDED FOR THE MONTHS ENDED
SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
2000 DECEMBER 31, 2000 DECEMBER 31, 2000
(UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED)
------------- ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income.............................. $ 2,292 $ 2,772 $ 40,008 $ 32,622 $ 104,707
Net realized gain (loss) on investments............ 0 0 (12,672) (3,347) (76,731)
Net change in unrealized appreciation
(depreciation) of investments.................... 0 0 1,333 (33,665) 101,073
-------- -------- --------- --------- ----------
Net increase (decrease) in net assets resulting from
operations......................................... 2,292 2,772 28,669 (4,390) 129,049
-------- -------- --------- --------- ----------
From unit transactions:
Net proceeds from the issuance of units............ 5,584 7,498 145,028 259,097 472,568
Net asset value of units redeemed or used to meet
contract obligations............................. (12,568) (18,290) (196,125) (127,346) (484,234)
-------- -------- --------- --------- ----------
Net increase (decrease) from unit transactions...... (6,984) (10,792) (51,097) 131,751 (11,666)
-------- -------- --------- --------- ----------
Net increase (decrease) in net assets............... (4,692) (8,020) (22,428) 127,361 117,383
Net assets beginning of period...................... 61,097 69,117 779,382 652,021 1,580,090
-------- -------- --------- --------- ----------
Net assets end of period*........................... $ 56,405 $ 61,097 $ 756,954 $ 779,382 $1,697,473
======== ======== ========= ========= ==========
Unit transactions:
Units outstanding beginning of period............... 3,115 3,678 61,590 51,260 116,016
Units issued during the period...................... 280 392 11,318 20,763 33,396
Units redeemed during the period.................... (630) (955) (15,403) (10,433) (34,241)
-------- -------- --------- --------- ----------
Units outstanding end of period..................... 2,765 3,115 57,505 61,590 115,171
======== ======== ========= ========= ==========
---------------
* Includes undistributed net investment income
of:................................................ $ 85,541 $ 83,249 $ 90,664 $ 50,656 $ 276,902
======== ======== ========= ========= ==========
<CAPTION>
MONY EQUITY MASTER
--------------------------------------------------------------------------
MONY SERIES FUND, INC
--------------------------------------------------------------------------
LONG TERM GOVERNMENT MONEY
BOND SECURITIES MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------------------------- ----------------------------
FOR THE NINE FOR THE MINE
FOR THE MONTHS ENDED FOR THE MONTHS ENDED FOR THE
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED
DECEMBER 31, 2000 DECEMBER 31, 2000 DECEMBER 31,
1999 (UNAUDITED) 1999 (UNAUDITED) 1999
------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income.............................. $ 80,387 $ 45,166 $ 19,304 $ 150,381 $ 196,409
Net realized gain (loss) on investments............ (16,422) (2,703) 6,761 0 0
Net change in unrealized appreciation
(depreciation) of investments.................... (209,021) 3,587 (26,058) 0 0
---------- --------- --------- ----------- -----------
Net increase (decrease) in net assets resulting from
operations......................................... (145,056) 46,050 7 150,381 196,409
---------- --------- --------- ----------- -----------
From unit transactions:
Net proceeds from the issuance of units............ 939,989 196,195 486,563 1,080,713 6,472,419
Net asset value of units redeemed or used to meet
contract obligations............................. (770,619) (271,028) (232,350) (4,335,514) (5,555,147)
---------- --------- --------- ----------- -----------
Net increase (decrease) from unit transactions...... 169,370 (74,833) 254,213 (3,254,801) 917,272
---------- --------- --------- ----------- -----------
Net increase (decrease) in net assets............... 24,314 (28,783) 254,220 (3,104,420) 1,113,681
Net assets beginning of period...................... 1,555,776 973,594 719,374 6,444,177 5,330,496
---------- --------- --------- ----------- -----------
Net assets end of period*........................... $1,580,090 $ 944,811 $ 973,594 $ 3,339,757 $ 6,444,177
========== ========= ========= =========== ===========
Unit transactions:
Units outstanding beginning of period............... 104,745 78,201 57,728 521,637 449,645
Units issued during the period...................... 69,177 15,474 39,507 85,238 686,519
Units redeemed during the period.................... (57,906) (21,562) (19,034) (346,675) (614,527)
---------- --------- --------- ----------- -----------
Units outstanding end of period..................... 116,016 72,113 78,201 260,200 521,637
========== ========= ========= =========== ===========
---------------
* Includes undistributed net investment income
of:................................................ $ 172,195 $ 93,406 $ 48,240 $ 712,491 $ 562,110
========== ========= ========= =========== ===========
</TABLE>
See notes to financial statements.
F-10
<PAGE> 13
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MONY EQUITY MASTER
------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------------------------------------
SMALL COMPANY
EQUITY VALUE MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------- ---------------------------- ----------------------------
FOR THE NINE FOR THE NINE FOR THE NINE
MONTHS ENDED FOR THE MONTHS ENDED FOR THE MONTHS ENDED FOR THE
SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED
2000 DECEMBER 31, 2000 DECEMBER 31, 2000 DECEMBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED) 1999
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income........ $12,437,963 $ 2,957,349 $ 5,409,818 $ 1,542,856 $ 34,715,852 $17,912,515
Net realized gain (loss) on
investments................ 1,640,715 816,091 451,860 533,338 (6,836,655) 1,708,506
Net change in unrealized
appreciation (depreciation)
of investments............. (7,026,060) 1,678,484 (5,290,356) 2,698,994 (29,044,032) (11,119,070)
----------- ----------- ----------- ----------- ------------ ------------
Net increase (decrease) in net
assets resulting from
operations................... 7,052,618 5,451,924 571,322 4,775,188 (1,164,835) 8,501,951
----------- ----------- ----------- ----------- ------------ ------------
From unit transactions:
Net proceeds from the
issuance of units.......... 12,993,359 14,814,850 7,648,562 10,495,593 19,250,128 32,930,266
Net asset value of units
redeemed or used to meet
contract obligations....... (10,284,638) (7,392,370) (6,310,918) (4,895,495) (29,220,247) (19,858,472)
----------- ----------- ----------- ----------- ------------ ------------
Net increase (decrease) from
unit transactions............ 2,708,721 7,422,480 1,337,644 5,600,098 (9,970,119) 13,071,794
----------- ----------- ----------- ----------- ------------ ------------
Net increase (decrease) in net
assets....................... 9,761,339 12,874,404 1,908,966 10,375,286 (11,134,954) 21,573,745
Net assets beginning of
period....................... 42,951,802 30,077,398 27,701,853 17,326,567 113,427,217 91,853,472
----------- ----------- ----------- ----------- ------------ ------------
Net assets end of period*..... $52,713,141 $42,951,802 $29,610,819 $27,701,853 $102,292,263 $113,427,217
=========== =========== =========== =========== ============ ============
Unit transactions:
Units outstanding beginning of
period....................... 1,709,190 1,373,480 1,135,497 874,371 4,803,230 4,216,748
Units issued during the
period....................... 470,204 697,369 313,622 509,273 836,625 1,506,274
Units redeemed during the
period....................... (363,393) (361,659) (257,033) (248,147) (1,263,313) (919,792)
----------- ----------- ----------- ----------- ------------ ------------
Units outstanding end of
period....................... 1,816,001 1,709,190 1,192,086 1,135,497 4,376,542 4,803,230
=========== =========== =========== =========== ============ ============
---------------
* Includes undistributed net
investment income of:...... $17,066,597 $ 4,628,634 $ 8,601,757 $ 3,191,939 $ 61,808,199 $27,092,347
=========== =========== =========== =========== ============ ============
** Commencement of operations
<CAPTION>
MONY EQUITY MASTER
---------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
---------------------------------------------------------------------------------------------
INTERNATIONAL HIGH YIELD GROWTH AND
GROWTH BOND GROWTH INCOME
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------- ---------------------------- -------------- --------------
FOR THE PERIOD FOR THE PERIOD
MAY 02, MAY 03,
FOR THE NINE FOR THE NINE 2000** 2000**
MONTHS ENDED FOR THE MONTHS ENDED FOR THE THROUGH THROUGH
SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, SEPTEMBER 30,
2000 DECEMBER 31, 2000 DECEMBER 31, 2000 2000
(UNAUDITED) 1999 (UNAUDITED) 1999 (UNAUDITED) (UNAUDITED)
------------- ------------ ------------- ------------ -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income........ $ 1,210,627 $ 228,208 $ 268,228 $ 350,028 $ 18,187 $ 1,072
Net realized gain (loss) on
investments................ 679,555 137,455 (200,075) (101,361) (1,049) 1,125
Net change in unrealized
appreciation (depreciation)
of investments............. (4,284,466) 3,547,935 (31,228) (132,000) (195,054) (11,753)
----------- ----------- ----------- ----------- ---------- ----------
Net increase (decrease) in net
assets resulting from
operations................... (2,394,284) 3,913,598 36,925 116,667 (177,916) (9,556)
----------- ----------- ----------- ----------- ---------- ----------
From unit transactions:
Net proceeds from the
issuance of units.......... 4,351,767 4,118,010 913,420 1,520,826 2,595,073 1,600,385
Net asset value of units
redeemed or used to meet
contract obligations....... (2,754,144) (1,722,826) (1,010,829) (1,041,034) (54,771) (56,331)
----------- ----------- ----------- ----------- ---------- ----------
Net increase (decrease) from
unit transactions............ 1,597,623 2,395,184 (97,409) 479,792 2,540,302 1,544,054
----------- ----------- ----------- ----------- ---------- ----------
Net increase (decrease) in net
assets....................... (796,661) 6,308,782 (60,484) 596,459 2,362,386 1,534,498
Net assets beginning of
period....................... 13,927,583 7,618,801 4,132,230 3,535,771 0 0
----------- ----------- ----------- ----------- ---------- ----------
Net assets end of period*..... $13,130,922 $13,927,583 $ 4,071,746 $ 4,132,230 $2,362,386 $1,534,498
=========== =========== =========== =========== ========== ==========
Unit transactions:
Units outstanding beginning of
period....................... 616,656 475,982 277,914 245,156 0 0
Units issued during the
period....................... 208,801 251,798 61,841 104,613 263,918 157,298
Units redeemed during the
period....................... (135,994) (111,124) (68,360) (71,855) (5,643) (5,498)
----------- ----------- ----------- ----------- ---------- ----------
Units outstanding end of
period....................... 689,463 616,656 271,395 277,914 258,275 151,800
=========== =========== =========== =========== ========== ==========
---------------
* Includes undistributed net
investment income of:...... $ 1,864,398 $ 653,771 $ 1,023,060 $ 754,832 $ 18,187 $ 1,072
=========== =========== =========== =========== ========== ==========
** Commencement of operations
<CAPTION>
MONY EQUITY MASTER
-------------------------------
ENTERPRISE ACCUMULATION TRUST
-------------------------------
DREYFUS
CAPITAL STOCK
APPRECIATION INDEX
SUBACCOUNT SUBACCOUNT
-------------- --------------
FOR THE PERIOD FOR THE PERIOD
MAY 03, MAY 02,
2000** 2000**
THROUGH THROUGH
SEPTEMBER 30, SEPTEMBER 30,
2000 2000
(UNAUDITED) (UNAUDITED)
-------------- --------------
<S> <C> <C>
From operations:
Net investment income........ $ 67,700 $ 5,674
Net realized gain (loss) on
investments................ 4,202 1,137
Net change in unrealized
appreciation (depreciation)
of investments............. (17,069) (79,574)
---------- ----------
Net increase (decrease) in net
assets resulting from
operations................... 54,833 (72,763)
---------- ----------
From unit transactions:
Net proceeds from the
issuance of units.......... 1,503,657 3,037,456
Net asset value of units
redeemed or used to meet
contract obligations....... (47,934) (49,310)
---------- ----------
Net increase (decrease) from
unit transactions............ 1,455,723 2,988,146
---------- ----------
Net increase (decrease) in net
assets....................... 1,510,556 2,915,383
Net assets beginning of
period....................... 0 0
---------- ----------
Net assets end of period*..... $1,510,556 $2,915,383
========== ==========
Unit transactions:
Units outstanding beginning of
period....................... 0 0
Units issued during the
period....................... 151,155 303,275
Units redeemed during the
period....................... (4,701) (4,900)
---------- ----------
Units outstanding end of
period....................... 146,454 298,375
========== ==========
---------------
* Includes undistributed net
investment income of:...... $ 67,700 $ 5,674
========== ==========
** Commencement of operations
</TABLE>
See notes to financial statements
F-11
<PAGE> 14
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
APRIL 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
MONY EQUITY MASTER
-----------------------------------------------------------------
FIDELITY VARIABLE INSURANCE
PRODUCTS FUNDS JANUS ASPEN SERIES FUND
------------------------------- -------------------------------
VIP VIP II CAPITAL WORLDWIDE
GROWTH CONTRAFUND APPRECIATION GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------- -------------- -------------- --------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
MAY 02, 2000** MAY 03, 2000** MAY 03, 2000** MAY 02, 2000**
THROUGH THROUGH THROUGH THROUGH
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
2000 2000 2000 2000
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
From operations:
Net investment income gain (loss).......... $ (3,614) $ (2,960) $ 13,246 $ 198,824
Net realized gain (loss) on investments.... 7,908 1,291 6,113 (2,196)
Net change in unrealized appreciation
(depreciation) of investments............ (58,497) 24,762 71,269 (363,532)
---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations................ (54,203) 23,093 90,628 (166,904)
---------- ---------- ---------- ----------
From unit transactions:
Net proceeds from the issuance of
units................................. 2,348,125 1,708,121 3,767,703 4,130,256
Net asset value of units redeemed or used
to meet contract obligations.......... (58,807) (38,577) (151,879) (130,200)
---------- ---------- ---------- ----------
Net increase from unit transactions........ 2,289,318 1,669,544 3,615,824 4,000,056
---------- ---------- ---------- ----------
Net increase in net assets................. 2,235,115 1,692,637 3,706,452 3,833,152
Net assets beginning of period............. 0 0 0 0
---------- ---------- ---------- ----------
Net assets end of period*.................. $2,235,115 $1,692,637 $3,706,452 $3,833,152
========== ========== ========== ==========
Unit transactions:
Units outstanding beginning of period...... 0 0 0 0
Units issued during the period............. 235,958 171,036 389,488 428,439
Units redeemed during the period........... (5,858) (3,832) (15,454) (13,346)
---------- ---------- ---------- ----------
Units outstanding end of period............ 230,100 167,204 374,034 415,093
========== ========== ========== ==========
* Includes undistributed net investment
income (loss) of:....................... $ (3,614) $ (2,960) $ 13,246 $ 198,824
========== ========== ========== ==========
</TABLE>
---------------
** Commencement of operations
See notes to financial statements.
F-12
<PAGE> 15
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION AND BUSINESS
MONY America Variable Account L (the "Variable Account") is a separate
investment account established on February 19, 1985 by MONY Life Insurance
Company of America ("MONY America"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY America's other assets and, at
present, is used to support Flexible Premium Variable Life Insurance policies,
which include Variable Life (Strategist) and Variable Universal Life (MONYEquity
Master, MONYCustom Equity Master and MONY Custom Estate Master) and Corporate
Sponsored Variable Life Insurance policies. These policies are issued by MONY
America, which is a wholly-owned subsidiary of MONY Life Insurance Company
("MONY"). For presentation purposes, the information related to the Variable
Life (Strategist) and Variable Universal Life (MONYEquity Master) Insurance
policies is presented here.
There are currently six Strategist Subaccounts and seventeen MONYEquity
Master Subaccounts within the Variable Account, and each invests only in a
corresponding portfolio of the MONY Series Fund, Inc. (the "Fund"), the
Enterprise Accumulation Trust ("Enterprise"), Dreyfus Stock Index Fund, Fidelity
Variable Insurance Products, or Janus Aspen Series (collectively, the "Funds").
The subaccounts of Strategist commenced operation in 1985 and the subaccounts of
MONY Equity Master commenced operations in 1995 and 2000. The Funds are
registered under the 1940 Act as open end, diversified, management investment
companies and are affiliated with MONY.
A full presentation of the related financial statements and footnotes of
the Fund and Enterprise are contained on pages hereinafter and should be read in
conjunction with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
Investments:
The investment in shares of each of the respective Funds' portfolio is
stated at value which is the net asset value of the respective portfolio as
reported by such portfolio. Net asset values are based upon market or fair
valuations of the securities held in each of the corresponding portfolios of the
Funds. For the Money Market Portfolio, the net asset value is based on amortized
cost of the securities held, which approximates market value.
Investment Transactions and Investment Income:
Investments in the portfolios of the Funds are recorded on the trade date.
Realized gains and losses include gains and losses on redemption of investments
in the portfolios of the Funds determined on the identified cost basis. Dividend
income is recorded on ex-dividend date. Dividend income includes distributions
of net investment income and net realized capital gains received from the
respective portfolios of the Funds. Dividend income received is reinvested in
additional shares of the respective portfolios of the Funds.
Taxes:
MONY America is currently taxed as a life insurance company and will
include the Variable Account's operations in its tax return. MONY America does
not expect, based on current tax law, to incur any income
F-13
<PAGE> 16
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
tax burden upon the earnings or realized capital gains attributable to the
Variable Account. Based on this expectation, no charges are currently being
deducted from the Variable Account for Federal income tax purposes.
3. RELATED PARTY TRANSACTIONS
MONY America is the legal owner of the assets held by the Variable Account.
Policy premiums received from MONY America by the Variable Account
represent gross policy premiums recorded by MONY America less deductions
retained as compensation for certain sales distribution expenses and premium
taxes.
The cost of insurance, administration charges, and, if applicable, the cost
of any optional benefits added by riders to the insurance policies are deducted
monthly from the cash value of the contract to compensate MONY America. A
surrender charge may be imposed when a full or partial surrender is requested by
the policyholders. These deductions are treated as contractholder redemptions by
the Variable Account. The amount deducted for the Strategist and MONY Equity
Master Subaccounts for the nine months ended September 30, 2000 aggregated
$21,193,434
MONY America receives from the Variable Account the amounts deducted for
mortality and expense risks at an annual rate of 0.60% (for each of the
Strategist Subaccounts) and 0.75% (for each of the MONYEquity Master
Subaccounts) of the average daily net assets of the respective subaccounts. As
investment adviser to the Fund, it receives amounts paid by the Fund for those
services.
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to the portfolios of Enterprise, and it receives
amounts paid by Enterprise for those services.
4. INVESTMENT TRANSACTIONS:
Cost of shares acquired and proceeds from shares redeemed by each
subaccount during the nine months ended September 30, 2000 were as follows:
<TABLE>
<CAPTION>
STRATEGIST SUBACCOUNTS COST OF SHARES ACQUIRED PROCEEDS FROM SHARES REDEEMED
---------------------- ----------------------- -----------------------------
<S> <C> <C>
MONY Series Fund, Inc.
Equity Growth Portfolio....................... $ 87,835 $ 125,470
Equity Income Portfolio....................... 19,587 94,027
Intermediate Term Bond Portfolio.............. 8,349 22,253
Long Term Bond Portfolio...................... 3,784 12,567
Diversified Portfolio......................... 73,763 146,531
Money Market Portfolio........................ 9,775 16,939
MONYEQUITY MASTER SUBACCOUNTS
------------------------------------------------
MONY Series Fund, Inc.
Intermediate Term Bond Portfolio.............. 158,975 212,890
Long Term Bond Portfolio...................... 486,567 504,399
Government Securities Portfolio............... 200,126 278,392
Money Market Portfolio........................ 3,548,692 6,820,413
</TABLE>
F-14
<PAGE> 17
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. RELATED PARTY TRANSACTIONS (CONTINUED)
<TABLE>
<CAPTION>
STRATEGIST SUBACCOUNTS COST OF SHARES ACQUIRED PROCEEDS FROM SHARES REDEEMED
---------------------- ----------------------- -----------------------------
<S> <C> <C>
Enterprise Accumulation Trust
Equity Portfolio.............................. 14,447,813 1,921,635
Small Company Value Portfolio................. 8,163,334 6,934,971
Managed Portfolio............................. 20,673,929 1,061,839
International Growth Portfolio................ 4,831,885 3,287,934
High Yield Bond Portfolio..................... 952,854 1,065,662
Growth & Income............................... 1,627,329 83,519
Growth Portfolio.............................. 2,619,427 79,461
Capital Appreciation.......................... 1,520,297 64,807
Dreyfus
Stock Index................................... 3,057,773 69,839
FidelityVariable Insurance Products Funds
VIP Growth Portfolio.......................... 2,405,899 116,797
VIP II Contra Fund Portfolio.................. 1,732,172 62,842
Janus Aspen Series
Capital Appreciation Portfolio................ 3,809,375 194,209
Worldwide Growth Portfolio.................... 4,149,917 150,484
</TABLE>
F-15
<PAGE> 18
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM CONDENSED BALANCE SHEETS
SEPTEMBER 30, 2000 AND DECEMBER 31, 1999
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
2000 1999
------------- ------------
($ IN MILLIONS)
<S> <C> <C>
ASSETS
Investments:
Fixed maturity securities available-for-sale, at fair
value..................................................... $ 994.3 $1,048.8
Mortgage loans on real estate............................... 115.1 165.0
Policy loans................................................ 67.7 58.8
Real estate................................................. 7.5 6.9
Other invested assets....................................... 8.1 2.3
-------- --------
1,192.7 1,281.8
-------- --------
Cash and cash equivalents................................... 71.6 28.9
Accrued investment income................................... 21.4 20.4
Amounts due from reinsurers................................. 17.3 18.6
Deferred policy acquisition costs........................... 471.8 406.4
Current federal income taxes receivable..................... 12.8 2.3
Other assets................................................ 7.2 24.9
Separate account assets..................................... 4,252.6 4,387.2
-------- --------
Total assets...................................... $6,047.4 $6,170.5
======== ========
LIABILITIES AND SHAREHOLDER'S EQUITY
Future policy benefits...................................... $ 133.6 $ 123.4
Policyholders' account balances............................. $1,157.2 1,154.1
Other policyholders' liabilities............................ 57.7 54.0
Accounts payable and other liabilities...................... 38.0 79.5
Note payable to affiliate (Note 5).......................... 47.4 49.0
Deferred federal income taxes............................... 38.5 19.4
Separate account liabilities................................ 4,252.6 4,387.2
-------- --------
Total liabilities................................. $5,725.0 $5,866.6
======== ========
Commitments and contingencies (Note 4)
Common stock $1.00 par value; 5,000,000 shares authorized,
2,500,000 issued and outstanding.......................... $ 2.5 $ 2.5
Capital in excess of par.................................... 199.7 199.7
Retained earnings........................................... 126.3 109.0
Accumulated other comprehensive loss........................ (6.1) (7.3)
-------- --------
Total shareholder's equity........................ 322.4 303.9
-------- --------
Total liabilities and shareholder's equity........ $6,047.4 $6,170.5
======== ========
</TABLE>
See accompanying notes to unaudited interim condensed financial statements.
F-16
<PAGE> 19
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM CONDENSED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
THREE-MONTH PERIODS ENDED SEPTEMBER 30, 2000 AND 1999
<TABLE>
<CAPTION>
2000 1999
------ ------
($ IN MILLIONS)
<S> <C> <C>
REVENUES:
Universal life and investment-type product policy fees...... $44.2 $33.7
Premiums.................................................... 7.2 1.1
Net investment income....................................... 22.3 23.1
Net realized (losses)/gains on investments.................. (1.1) 0.0
Other income................................................ 2.2 1.3
----- -----
Total revenues.................................... 74.8 59.2
----- -----
BENEFITS AND EXPENSES:
Benefits to policyholders................................... 18.7 12.0
Interest credited to policyholders' account balances........ 15.9 15.5
Amortization of deferred policy acquisition costs........... 8.9 12.3
Other operating costs and expenses.......................... 17.3 12.9
----- -----
Total benefits and expense........................ 60.8 52.7
----- -----
Income before income taxes.................................. 14.0 6.5
Income tax expense.......................................... 4.7 2.3
----- -----
Net income.................................................. 9.3 4.2
Other comprehensive income (loss), net...................... 2.5 (2.3)
----- -----
Comprehensive income........................................ $11.8 $ 1.9
===== =====
</TABLE>
See accompanying notes to unaudited interim condensed financial statements.
F-17
<PAGE> 20
UNAUDITED INTERIM CONDENSED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2000 AND 1999
<TABLE>
<CAPTION>
2000 1999
------ ------
($ IN MILLIONS)
<S> <C> <C>
REVENUES:
Universal life and investment-type product policy fees...... $126.2 $105.0
Premiums.................................................... 19.5 3.4
Net investment income....................................... 69.3 71.4
Net realized (losses)/gains on investments.................. (2.9) 1.2
Other Income................................................ 9.7 4.4
------ ------
Total revenues.............................................. 221.8 185.4
------ ------
BENEFITS AND EXPENSES:
Benefits to policyholders................................... 51.0 32.0
Interest credited to policyholders' account balances........ 46.8 48.1
Amortization of deferred policy acquisition costs........... 37.0 32.3
Other operating costs and expenses.......................... 61.6 52.1
------ ------
Total benefited and expenses................................ 196.4 164.5
------ ------
Income before income taxes.................................. 25.4 20.9
Income tax expense.......................................... 8.1 7.3
------ ------
Net income.................................................. 17.3 13.6
Other comprehensive income (loss), net...................... 1.2 (11.8)
------ ------
Comprehensive income........................................ $ 18.5 $ 1.8
====== ======
</TABLE>
See accompanying notes to unaudited interim condensed financial statements.
F-18
<PAGE> 21
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM CONDENSED STATEMENT
OF CHANGES IN SHAREHOLDERS' EQUITY
NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
ACCUMULATED
CAPITAL OTHER TOTAL
COMMON IN EXCESS RETAINED COMPREHENSIVE SHAREHOLDER'S
STOCK OF PAR EARNINGS INCOME/(LOSS) EQUITY
------ --------- -------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Balance, December 31, 1999............... $2.5 $199.7 $109.0 $(7.3) $303.9
Comprehensive income:
Net income............................. 17.3 17.3
Other comprehensive income(1).......... 1.2 1.2
------
Comprehensive income................ 18.5
---- ------ ------ ----- ------
Balance, September 30, 2000.............. $2.5 $199.7 $126.3 $(6.1) $322.4
==== ====== ====== ===== ======
</TABLE>
---------------
(1) Represents unrealized losses on investments, net of unrealized gains,
reclassification adjustments, and taxes.
See accompanying notes to unaudited interim condensed financial statements.
F-19
<PAGE> 22
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM CONDENSED STATEMENTS OF CASH FLOWS
NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2000 AND 1999
<TABLE>
<CAPTION>
2000 1999
--------- -------
($ IN MILLIONS)
<S> <C> <C>
NET CASH (USED IN) OPERATING ACTIVITIES..................... $ (71.6) $ (45.6)
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales, maturities or repayments of:
Fixed maturities.......................................... 151.7 209.9
Mortgage loans on real estate............................. 60.6 15.5
Real Estate............................................... 0.0 1.2
Other invested assets..................................... 0.0 3.8
Acquisitions of investments:
Fixed maturities.......................................... (100.7) (267.8)
Equity securities......................................... (0.3) 0.0
Mortgage loans on real estate............................. (10.6) (63.7)
Real estate............................................... (0.7) (0.3)
Other invested assets..................................... (0.9) (0.7)
Policy loans, net......................................... (9.0) (4.6)
Other, net................................................ 0.0 0.3
--------- -------
Net cash provided by/(used in) investing activities......... $ 90.1 $(106.4)
--------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Note payable to affiliate................................... -- 50.5
Repayment of note to affiliate.............................. (1.6) (1.0)
Receipts from annuity and universal life policies credited
to policyholders' account balances........................ 1,257.2 929.3
Return of policyholders' account balances on annuity and
universal life policies................................... (1,231.4) (912.2)
--------- -------
Net cash provided by financing activities................... 24.2 66.6
--------- -------
Net decrease in cash and cash equivalents................... 42.7 (85.4)
Cash and cash equivalents, beginning of year................ 28.9 133.4
--------- -------
Cash and cash equivalents, end of period.................... $ 71.6 $ 48.0
========= =======
</TABLE>
See accompanying notes to unaudited interim condensed financial statements.
F-20
<PAGE> 23
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS
1. ORGANIZATION AND DESCRIPTION OF BUSINESS
MONY Life Insurance Company of America (the "Company"), an Arizona stock
life insurance company, is a wholly-owned subsidiary of MONY Life Insurance
Company of New York ("MONY Life"), formerly The Mutual Life Insurance Company of
New York, which converted from a mutual life insurance company to a stock life
insurance company (the "Demutualization"). MONY Life is a wholly-owned
subsidiary of The MONY Group, Inc. (the "MONY Group").
The Company's primary business is to provide asset accumulation and life
insurance products to business owners, growing families, and pre-retirees. The
Company's insurance and financial products are marketed and distributed directly
to individuals primarily through MONY Life's career agency sales force. These
products are sold in 49 states (not including New York), the District of
Columbia, the U.S. Virgin Islands and Puerto Rico.
2. BASIS OF PRESENTATION
The accompanying unaudited interim condensed financial statements are
prepared in conformity with generally accepted accounting principles ("GAAP")
which requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. In the opinion of
management, these statements include all adjustments which were normal recurring
adjustments necessary to present fairly the financial position, results of
operations and cash flows for the periods presented. These statements should be
read in conjunction with the financial statements of the Company for the year
ended December 31, 1999 in the Company's 1999 Annual Report on Form 10-K. The
results of operations for the three-month and nine-month periods ended September
30, 2000 are not necessarily indicative of the results to be expected for the
full year.
3. FEDERAL INCOME TAXES
Federal income taxes for interim periods have been computed using an
estimated annual effective tax rate. This rate is revised, if necessary, at the
end of each successive interim period to reflect the current estimate of the
annual effective tax rate. In 2000, the effective tax rate was revised to
reflect higher dividends received deductions.
4. COMMITMENTS AND CONTINGENCIES
Since late 1995 a number of purported class actions have been commenced in
various state and federal courts against the Company alleging that the Company
engaged in deceptive sales practices in connection with the sale of whole and
universal life insurance policies in the 1980s and 1990s. Although the claims
asserted in each case are not identical, they seek substantially the same relief
under essentially the same theories of recovery (i.e., breach of contract,
fraud, negligent misrepresentation, negligent supervision and training, breach
of fiduciary duty, unjust enrichment and violation of state insurance and/or
deceptive business practice laws). Plaintiffs in these cases seek primarily
equitable relief (e.g., reformation, specific performance, mandatory injunctive
relief prohibiting the Company from canceling policies for failure to make
required premium payments, imposition of a constructive trust and creation of a
claims resolution facility to adjudicate any individual issues remaining after
resolution of all class-wide issues) as opposed to compensatory damages,
although they also seek compensatory damages in unspecified amounts. The Company
has answered the complaints in each action (except for one being voluntarily
held in abeyance), has denied any wrongdoing and has asserted numerous
affirmative defenses.
On June 7, 1996, the New York State Supreme Court certified one of those
cases, the Goshen v. The Mutual Life Insurance Company of New York and MONY Life
Insurance Company of America, (now known
F-21
<PAGE> 24
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS -- (CONTINUED)
as DeFilippo, et al v. The Mutual Life Insurance Company of New York and MONY
Life Insurance Company), the first of the class actions filed, as a nationwide
class consisting of all persons or entities who have, or at the time of the
policy's termination had, an ownership interest in a whole or universal life
insurance policy issued by MONY and sold on an alleged "vanishing premium" basis
during the period January 1, 1982 to December 31, 1995. On March 27, 1997, MONY
filed a motion to dismiss or, alternatively, for summary judgment on all counts
of the complaint. All of the other putative class actions have been consolidated
and transferred by the Judicial Panel on Multidistrict Litigation to the United
States District Court for the District of Massachusetts, and/or are being held
in abeyance pending the outcome of the Goshen case.
On October 21, 1997, the New York State Supreme Court granted MONY's motion
for summary judgment and dismissed all claims filed in the Goshen case against
us. On December 20, 1999, the New York State Court of Appeals affirmed the
dismissal of all but one of the claims in the Goshen case (a claim under New
York's General Business Law), which has been remanded back to the New York State
Supreme Court for further proceedings consistent with the opinion. The New York
State Supreme Court has subsequently reaffirmed that, for purposes of the
remaining New York General Business Law claim, the class is now limited to New
York purchasers only (and plaintiffs have appealed this aspect of the ruling),
and has further held that the New York General Business Law claims of all class
members whose claims accrued prior to November 29, 1992 are barred by the
applicable statute of limitations. MONY intends to defend itself vigorously
against the sole remaining claim.
In addition to the matters discussed above, the Company is involved in
various other legal actions and proceedings in connection with its business. The
claimants in certain of these actions and proceedings seek damages of
unspecified amounts.
While the outcome of such matters cannot be predicted with certainty, in
the opinion of management, any liability resulting from the resolution of these
matters will not have a material adverse effect on the Company's financial
position or results of operations. There can be no assurance, however, that the
present litigation relating to sales practices will not have a material effect
on MONY.
Insurance companies are subject to assessments up to statutory limits, by
state guaranty funds for losses of policyholders of insolvent insurance
companies. In the opinion of management, such assessments will not have a
material adverse effect on the financial position and the results of operations
of the Company.
At September 30, 2000, the Company had commitments outstanding of $4.4
million for fixed rate agricultural loans with periodic interest rate reset
dates. The initial interest rates on the agricultural loans range from 7.9% to
8.3%. There was a fixed rate commercial mortgage commitment of $5.8 million
outstanding as of September 30, 2000. The interest rate on this commercial loan
is 8.0%. The Company had commitments outstanding to purchase $24.5 million of
private fixed maturity securities as of September 30, 2000 with interest rates
ranging from 7.6% to 9.1%.
5. NOTE PAYABLE TO AFFILIATE
On March 5, 1999, the Company borrowed $50.5 million from MONY Benefits
Management Corp. ("MBMC"), an affiliate, in exchange for a note payable in the
same amount. The note bears interest at 6.8% per annum and matures on March 5,
2014. Principal and interest are payable quarterly to MBMC. The carrying value
of the note as of September 30, 2000 is $47.4 million.
6. INTERCOMPANY REINSURANCE AGREEMENTS
The Company entered into a modified coinsurance agreement with U.S.
Financial Life Insurance Company ("USFL"), an affiliate, effective January 1,
1999, whereby the Company agrees to reinsure 90% of all level term life
insurance policies written by USFL after January 1, 1999. Under the agreement,
the Company will share in all premiums and benefits for such policies based on
the 90% quota share percentage,
F-22
<PAGE> 25
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS -- (CONTINUED)
after consideration of existing reinsurance agreements previously in force on
this business. In addition, the Company will reimburse USFL for its quota share
of expense allowances, as defined in the agreement. In the third quarter of 2000
the treaty was amended to include new sales of universal life business written
by USFL. At September 30, 2000 the Company recorded a payable of $5.6 million to
USFL in connection with this agreement which is included in Accounts Payable and
Other Liabilities in the balance sheet.
Effective September 1, 1999, the Company recaptured its reinsurance
agreements with MONY Life for all in force and new business. The Company
simultaneously entered into new reinsurance agreements with third party
reinsurers which reinsured the same block of business as that previously
reinsured by MONY Life. Under the new reinsurance agreements, the Company
increased its retention limits on new business for any one person for individual
products from $0.5 million to $4.0 million and on last survivor products from
$0.5 million to $6.0 million.
7. NEW ACCOUNTING PRONOUNCEMENTS
In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities." SFAS 133 requires all derivatives to be
recognized in the statement of financial position as either assets or
liabilities and measured at fair value. The corresponding derivative gains and
losses should be reported based on the hedge relationship that exists, if there
is one. Changes in the fair value of derivatives that are not designated as
hedges or that do not meet the hedge accounting criteria in SFAS 133, are
required to be reported in earnings. SFAS 133, as amended by SFAS 137, is
effective for all fiscal quarters of the fiscal years beginning after June 15,
2000. SFAS 137 delayed the effective date of SFAS 133 by one year. Adoption of
SFAS 133 is not expected to have a material effect on the Company's financial
condition or results of operations.
F-23
