================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-1004
FORM 11-K
(Mark One)
/ X / ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1995 COMMISSION FILE NUMBER
1-9553
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
PARAMOUNT COMMUNICATIONS INC.
EMPLOYEES' SAVINGS PLAN
------------------------------
(Full title of the plan)
VIACOM INC
----------------------------------------------------------------
(Name of issuer of the securities held pursuant to the plan)
1515 BROADWAY
NEW YORK, NEW YORK 10036
------------------------------
(Address of principal executive offices)
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<PAGE>
PARAMOUNT COMMUNICATIONS INC.
EMPLOYEES' SAVINGS PLAN
INDEX
<TABLE>
<CAPTION>
Page
----
<S> <C>
(a)Financial Statements
Report of Independent Accountants........................................ F-2
Statement of Net Assets Available for Benefits, with Fund Information -
December 31, 1995 and 1994............................................. F-3 - F-4
Statement of Changes In Net Assets Available for Benefits, with Fund
Information -Years Ended December 31, 1995 and 1994................... F-5 - F-6
Notes to Financial Statements........................................... F-7 - F-12
Additional Information
I - Item 27a - Schedule of Assets Held for Investment Purposes.......... S-1 - S-4
II - Item 27a - Schedule of Assets Held for Investment Purposes
which were both Acquired and Disposed of within the Plan Year...... S-5 - S-11
III - Item 27d - Schedule of Reportable Transactions...................... S-12
</TABLE>
(b)Exhibit
I - Consent of Independent Accountants
All other schedules are omitted as not applicable or not required.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
persons who administer the Plan have duly caused this annual report to be signed
on its behalf by the undersigned, hereunto duly authorized.
PARAMOUNT COMMUNICATIONS INC.
EMPLOYEES' SAVINGS PLAN
Date: June 28, 1996 By: Marguerite Heilman
---------------------------
Marguerite Heilman
Member of the
Retirement Committee
<PAGE>
================================================================================
REPORT OF INDEPENDENT ACCOUNTANTS
June 28, 1996
To the Participants and Administrator
of the Paramount Communications Inc. Employees' Savings Plan
In our opinion, the financial statements in the accompanying index present
fairly, in all material respects, the net assets available for benefits of the
Paramount Communications Inc. Employees' Savings Plan (the "Plan") at December
31, 1995 and 1994, and the changes in net assets available for benefits for the
years then ended, in conformity with generally accepted accounting principles.
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 audit. We conducted our audit of these statements in accordance with
generally accepted auditing standards which 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,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for the opinion expressed
above.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information included in
the accompanying index is presented for purposes of additional analysis and is
not a required part of the basic financial statements but is additional
information required by ERISA. The Fund Information in the statement of net
assets available for benefits and the statement of changes in net assets
available for benefits is presented for purposes of additional analysis rather
than to present the net assets available for plan benefits and changes in net
assets available for benefits of each fund. The supplemental schedules and the
Fund Information have been subjected to the auditing procedures applied in the
audits of the basic financial statements and, in our opinion, are fairly stated
in all material respects in relation to the basic financial statements taken
as a whole.
PRICE WATERHOUSE LLP
New York, New York
F-2
<PAGE>
<TABLE>
PARAMOUNT COMMUNICATIONS INC.
EMPLOYEES' SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1995
<CAPTION>
EMPLOYER FUND EMPLOYEE FUNDS
------------- --------------------------------------------------------
INCOME
VIACOM INC. VIACOM INC. EQUITY INVESTMENT
STOCK FUND STOCK FUND FUND FUND
---------- ---------- ---- ----
<S> <C> <C> <C> <C>
Investments:
Viacom Inc. Class B Common Stock........... $ 126,888,892 $ 15,600,896
Viacom Inc. 8% Subordinated
Exchangeable Debentures due 2006....... 5,088
Viacom Inc. Stock Warrants................. 1,934 34
Other...................................... 3,142 275 $ 2,144,464 $ 111,077,527
Participant loans receivable...............
---------------- ---------------- ---------------- ---------------
126,899,056 15,601,205 2,144,464 111,077,527
Employer contribution receivable............... 587,242
Employee contribution receivable............... 226,444 548,194 868,731
Dividends and interest receivable.............. 648 20 119,365 560,569
Interfund receivables (payables), net.......... 2,470,728 (1,923,406) (1,607,529) (1,691,748)
Receivable from brokers........................ 63,122,134
Forfeitures.................................... (469,625) (94,490)
Payables to Prentice Hall Computer
Publishing Division Retirement Plan.... (26,206) (12,660)
Payables to brokers............................ (755,709)
---------------- ---------------- ----------------- ---------------
NET ASSETS AVAILABLE FOR BENEFITS...... $ 129,488,049 $ 13,904,263 $ 63,544,713 $ 110,707,929
============= ============ ================ =============
<CAPTION>
----------------------------------
BALANCED CLEARING COMBINED
FUND FUND LOANS FUNDS
---- ---- ----- -----
<S> <C> <C> <C> <C>
Investments:
Viacom Inc. Class B Common Stock........... $ 142,489,788
Viacom Inc. 8% Subordinated
Exchangeable Debentures due 2006....... 5,088
Viacom Inc. Stock Warrants................. 1,968
Other...................................... $ 22,824,024 $ 127,091 136,176,523
Participant loans receivable............... $ 12,394,732 12,394,732
---------------- ------------- ------------- ------------------
22,824,024 127,091 12,394,732 291,068,099
Employer contribution receivable............... 587,242
Employee contribution receivable............... 166,553 1,809,922
Dividends and interest receivable.............. 29 5,780 686,411
Interfund receivables (payables), net.......... 2,592,595 159,360 --
Receivable from brokers........................ 63,122,134
Forfeitures.................................... 564,115 --
Payables to Prentice Hall Computer
Publishing Division Retirement Plan.... (38,866)
Payables to brokers............................ (221,276) (976,985)
---------------- -------------- --------------- -------------------
NET ASSETS AVAILABLE FOR BENEFITS...... $ 25,583,201 $ 635,070 $ 12,394,732 $ 356,257,957
=============== ============= ============ =================
See accompanying notes to the financial statements.
</TABLE>
F-3
<PAGE>
<TABLE>
PARAMOUNT COMMUNICATIONS INC.
EMPLOYEES' SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1994
EMPLOYER FUND EMPLOYEE FUNDS
------------- --------------------------------------------------------
INCOME
VIACOM INC. VIACOM INC. EQUITY INVESTMENT
STOCK FUND STOCK FUND FUND FUND
---------- ---------- ---- ----
<S> <C> <C> <C> <C>
Investments:
Viacom Inc. Class B Common Stock......... $105,838,264 $ 4,286,248
Viacom Inc. 8% Subordinated
Exchangeable Debentures due 2006....... 11,308,067 1,814,256
Viacom Inc. Contingent Value Rights...... 2,148,410 288,127
Viacom Inc. Stock Warrants............... 6,309
Other.................................... 10,575,189 1,580,206 $52,516,408 $128,076,544
Participant loans receivable.............
-------------- -------------- ------------- -------------
129,876,239 7,968,837 52,516,408 128,076,544
Employee contribution receivable............. 597,014 1,172,472
Dividends and interest receivable............ 543,791 87,710 432,352 564,937
Interfund receivables (payables), net........ 213,623 (201,160) (22,179) (77,150)
Forfeitures.................................. (260,300) 3,249
Payables to Prentice Hall Computer
Publishing Division Retirement Plan..... (24,935)
Payables to brokers.......................... (3,271,984) (13,000)
--------------- -------------- -------------- -------------
NET ASSETS AVAILABLE FOR BENEFITS....... $127,101,369 $ 7,855,387 $53,485,660 $129,740,052
============ ============== =========== ============
<CAPTION>
BALANCED CLEARING COMBINED
FUND FUND LOANS FUNDS
---- ---- ----- -----
<S> <C> <C> <C> <C>
Investments:
Viacom Inc. Class B Common Stock......... $110,124,512
Viacom Inc. 8% Subordinated
Exchangeable Debentures due 2006....... 13,122,323
Viacom Inc. Contingent Value Rights...... 2,436,537
Viacom Inc. Stock Warrants............... 6,309
Other.................................... $17,574,314 $724,346 211,047,007
Participant loans receivable............. $13,074,397 13,074,397
------------- ---------- ----------- --------------
17,574,314 724,346 13,074,397 349,811,085
Employee contribution receivable............. 250,714 2,020,200
Dividends and interest receivable............ 103 3,359 1,632,252
Interfund receivables (payables), net........ 86,866 --
Forfeitures.................................. 257,051 --
Payables to Prentice Hall Computer
Publishing Division Retirement Plan..... (24,935)
Payables to brokers.......................... (115,782) (3,400,766)
------------- ----------- --------------- ---------------
NET ASSETS AVAILABLE FOR BENEFITS....... $17,911,997 $868,974 $ 13,074,397 $350,037,836
=========== ========== ============ ============
See accompanying notes to the financial statements.
</TABLE>
F-4
<PAGE>
<TABLE>
<CAPTION>
PARAMOUNT COMMUNICATIONS INC.
EMPLOYEES' SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1995
EMPLOYER FUND EMPLOYEE FUNDS
------------- --------------------------------------------------------
INCOME
VIACOM INC. VIACOM INC. EQUITY INVESTMENT
STOCK FUND STOCK FUND FUND FUND
---------- ---------- ---- ----
<S> <C> <C> <C> <C>
Additions to net assets attributable to:
Net investment income:
Dividends on common stocks.............. $ 1,466,973
Interest income......................... $700,468 $ 218,331 101,370 $ 7,299,189
Administrative expenses.................
--------------- ---------------- ----------------- ---------------
700,468 218,331 1,568,343 7,299,189
Net realized gain on disposition
of investments.......................... 3,942,660 1,236,746 22,321,067
Unrealized appreciation (depreciation) of
investments............................. 7,791,924 542,399 (5,339,002)
Contributions:
Employer................................ 8,877,670
Employee................................ 1,792,158 7,249,863 9,571,135
Rollovers from non-affiliated plans..... 244,757 472,463 1,343,476
--------------- ---------------- ----------------- ---------------
Total additions................. 21,312,722 4,034,391 26,272,734 18,213,800
Deductions from net assets attributable to:
Benefits paid to participants............... (15,933,357) (4,642,341) (8,801,590) (24,704,571)
Forfeitures................................. (1,041,545) (793) 24,935 (97,739)
Asset transfers to non-affiliated plans..... (6,003,526) (797,815) (2,116,098) (2,806,333)
Interfund transfers and loan activity, net.. 4,052,386 7,455,434 (5,320,928) (9,637,280)
--------------- ---------------- ----------------- ---------------
Total deductions................ (18,926,042) 2,014,485 (16,213,681) (37,245,923)
Net additions (deductions)...... 2,386,680 6,048,876 10,059,053 (19,032,123)
Net assets available for benefits
at beginning of year........................ 127,101,369 7,855,387 53,485,660 129,740,052
--------------- ---------------- ----------------- ---------------
Net assets available for benefits at end of year $ 129,488,049 $ 13,904,263 $ 63,544,713 $110,707,929
=============== ================ ================= ===============
<CAPTION>
BALANCED CLEARING COMBINED
FUND FUND LOANS FUNDS
---- ---- ----- -----
<S> <C> <C> <C>
Additions to net assets attributable to:
Net investment income:
Dividends on common stocks.............. $ 1,466,973
Interest income......................... $ 966,021 $ 56,646 $ 978,357 10,320,382
Administrative expenses................. (717,220) (717,220)
-------------- -------------- -------------- -----------------
966,021 (660,574) 978,357 11,070,135
Net realized gain on disposition
of investments.......................... 139,219 27,639,692
Unrealized appreciation (depreciation) of
investments............................. 3,955,555 6,950,876
Contributions:
Employer................................ 8,877,670
Employee................................ 2,760,091 21,373,247
Rollovers from non-affiliated plans..... 247,026 2,307,722
-------------- -------------- -------------- -----------------
Total additions................. 8,067,912 (660,574) 978,357 78,219,342
Deductions from net assets attributable to:
Benefits paid to participants............... (3,202,325) (2,173,753) (59,457,937)
Forfeitures................................. 1,115,142 --
Asset transfers to non-affiliated plans..... (817,512) (12,541,284)
Interfund transfers and loan activity, net.. 3,623,129 (688,472) 515,731 --
-------------- -------------- -------------- -----------------
Total deductions................ (396,708) 426,670 (1,658,022) (71,999,221)
Net additions (deductions)...... 7,671,204 (233,904) (679,665) 6,220,121
Net assets available for benefits
at beginning of year........................ 17,911,997 868,974 13,074,397 350,037,836
-------------- -------------- -------------- -----------------
Net assets available for benefits at end of year $ 25,583,201 $ 635,070 $ 12,394,732 $ 356,257,957
============== ============== ============== =================
</TABLE>
See accompanying notes to the financial statements.
F-5
<PAGE>
<TABLE>
PARAMOUNT COMMUNICATIONS INC.
EMPLOYEES' SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION
DECEMBER 31, 1994
EMPLOYER FUND EMPLOYEE FUNDS
------------- --------------------------------------------------------
INCOME
VIACOM INC. VIACOM INC. EQUITY INVESTMENT
STOCK FUND STOCK FUND FUND FUND
---------- ---------- ---- ----
<S> <C> <C> <C> <C>
Additions to net assets attributable to:
Net investment income:
Dividends on common stocks................. $ 1,302,919
Interest income............................ $ 2,616,062 $ 619,421 257,576 $ 6,819,357
Administrative expenses....................
----------- ----------- ------------ ------------
2,616,062 619,421 1,560,495 6,819,357
Net realized gain on disposition
of investments............................. 28,788,780 12,869,946
Unrealized depreciation of
investments................................ (17,154,769) (11,322,993) (939,231)
Contributions:
Employer................................... 8,705,966
Employee................................... 3,276,670 7,975,190 9,069,481
Rollovers from non-affiliated plans................ 619,552 2,020,298 3,896,045
Merger with Paramount Communications Inc.
Employee Stock Ownership Plan................. 59,260,123
------------ ----------------- ---------------- ---------------
Total additions.................... 82,216,162 6,062,596 10,616,752 19,784,883
Deductions from net assets attributable to:
Benefits paid to participants.................. (14,339,108) (4,464,643) (5,991,538) (19,294,240)
Forfeitures.................................... (1,166,409) 17,006
Interfund transfers and loan activity, net..... 39,531 (21,588,656) 4,194,224 10,028,228
----------- --------------- ------------- -------------
Total deductions................... (15,465,986) (26,053,299) (1,797,314) (9,249,006)
Net additions (deductions)......... 66,750,176 (19,990,703) 8,819,438 10,535,877
Net assets available for benefits
at beginning of year........................... 60,351,193 27,846,090 44,666,222 119,204,175
---------------- ----------------- -------------- -------------
Net assets available for benefits at end of year... $127,101,369 $7,855,387 $53,485,660 $129,740,052
============ ========== =========== ============
<CAPTION>
BALANCED CLEARING COMBINED
FUND FUND LOANS FUNDS
---- ---- ----- -----
<S>
Additions to net assets attributable to:
Net investment income:
Dividends on common stocks................. $ 1,302,919
Interest income............................ $ 559,711 $ 27,817 $ 871,199 11,771,143
Administrative expenses.................... (833,195) (833,195)
---------- ----------- ----------------- ------------
559,711 (805,378) 871,199 12,240,867
Net realized gain on disposition
of investments............................. 14,143 41,672,869
Unrealized depreciation of
investments................................ (473,683) (29,890,676)
Contributions:
Employer................................... 8,705,966
Employee................................... 2,450,291 22,771,632
Rollovers from non-affiliated plans................ 1,877,369 8,413,264
Merger with Paramount Communications Inc.
Employee Stock Ownership Plan................. 59,260,123
---------------- --------------- ------------- -----------------
Total additions.................... 4,427,831 (805,378) 871,199 123,174,045
Deductions from net assets attributable to:
Benefits paid to participants.................. (1,693,299) (1,556,658) (47,339,486)
Forfeitures.................................... 1,149,403 --
Interfund transfers and loan activity, net..... 5,929,607 1,397,066 --
--------- ----------- --------- -------------
Total deductions................... 4,236,308 1,149,403 (159,592) (47,339,486)
Net additions (deductions)......... 8,664,139 344,025 711,607 75,834,559
Net assets available for benefits
at beginning of year........................... 9,247,858 524,949 12,362,790 274,203,277
--------------- ------------- ----------- --------------
Net assets available for benefits at end of year... $17,911,997 $ 868,974 $13,074,397 $350,037,836
=========== ========== ========== ============
F-6
<PAGE>
PARAMOUNT COMMUNICATIONS INC.
EMPLOYEES' SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE A - PLAN DESCRIPTION
The following is a brief description of the Paramount Communications Inc.
Employees' Savings Plan (the "Plan") and is provided for general information
only. Participants should refer to the Plan documents for more complete
information regarding the Plan.
The Plan is a defined contribution plan offered on a voluntary basis to
substantially all employees of the former Paramount Communications Inc.
("Paramount"), excluding employees who are party to collective bargaining
agreements. Eligible employees may become participants in the Plan following the
earlier of the attainment of age 25 or the completion of one year of employment
service, generally measured from the date of hire. Employees of Paramount Parks
may become participants of the Plan following the attainment of age 21 and
one-year of employment service. The Plan is subject to the Employee Retirement
Income Security Act of 1974, as amended ("ERISA") and is administered by the
Retirement Committee appointed by the Board of Directors of the Company (as
defined below).
Paramount became a wholly-owned subsidiary of Viacom Inc. ("Viacom",
collectively with Paramount the "Company" or "Employer") in July 1994 (the
"Merger"). In March 1994, pursuant to a tender offer for Paramount, all shares
of Paramount common stock held by the Plan were tendered to Viacom. The Plan
received cash of $107 per share for approximately one-half of the tendered
shares and received certain securities of Viacom for its remaining shares of
Paramount common stock upon completion of the Merger in July 1994. Effective
January 3, 1995, Paramount was merged into Viacom International Inc., a
wholly-owned subsidiary of Viacom Inc., and Paramount ceased to exist as a
separate corporate legal entity. Sponsorship of the Plan, was assumed by PCI's
Holdings Corporation, itself a wholly-owned subsidiary of Viacom International
Inc. Effective January 1, 1996, the Plan was merged into the Viacom Investment
Plan, and PCI Holdings Corporation ceased to exist as a legal entity. For this
reason, the Form 5500 of the Plan for the year ended December 31, 1995, will
list Viacom Inc., the sponsor of the Viacom Investment Plan, as the Plan
Sponsor.
Included in the Viacom securities received by the Plan as part of the
Merger consideration were certain contingent value rights ("CVRs") representing
the right to receive cash or Viacom securities, at Viacom's option, based on the
market value of Viacom Class B common stock during a one, two or three year
period, at Viacom's option, following the merger. During May 1995, the CVRs held
by the Plan were sold and the proceeds were invested in Viacom Class B
Common Stock.
Effective July 1994, the Plan merged with the Paramount Communications Inc.
Employee Stock Ownership Plan (the "ESOP") and the assets and liabilities under
the ESOP were transferred to the Viacom Inc. Stock Fund of the Plan. All
participants of the ESOP became fully vested in the Plan as of July 7, 1994 and
the ESOP`s terms are substantially equivalent to the Plan.
Madison Square Garden and a division of Simon and Schuster were sold during
1995 and the related assets were transferred to new plans.
INVESTMENT PROGRAMS
The investment programs of the Plan during the periods presented are as
follows (See Note G):
Participant contributions -- A Participant may contribute to the Plan from
1% to 12% of the Participant's base pay including certain commissions, subject
to adjustment to comply with the Internal Revenue Code (the "Code"). A
Participant's contributions can be made with before-tax or after-tax dollars.
A Participant may change or suspend the amount of the Participant's contribution
at any time effective as of the first day of any month; however, any suspension
must be for a minimum of three months. Upon enrollment or re-enrollment, each
Participant shall direct that the Participant's contributions be invested in
one or more of the following investment options in increments of 10%:
Viacom Inc. Stock Fund
Contributions to this fund are invested in Viacom Inc. Class B Common Stock.
In addition, the fund holds all consideration received in exchange for shares of
Paramount Common Stock as a result of the Merger. Prior to the Merger, the fund
invested in Paramount common stock. Dividends received on Paramount common stock
in the fund were
F-7
<PAGE>
PARAMOUNT COMMUNICATIONS INC.
EMPLOYEES' SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
reinvested in Paramount common stock. Investments in the Viacom Inc. Stock Fund
qualify as party-in-interest. Chemical Banking Corporation is the trustee of
this fund. The fund is managed by the Retirement Committee.
Equity Fund
This fund is primarily invested in a portfolio of common stocks constructed
and maintained with the objective of providing investment results which
approximate the performance of the Standard and Poor's 500 Stock Index (the "S&P
500"). The fund may purchase or sell individual securities or futures contracts
on the S&P 500 or on a similarly broad index. Equity and market index call
options may be written (sold) on the securities in the underlying portfolio but
none of the optioned shares will be allowed to be called away. Bankers Trust
Company is the investment manager of this fund. Chemical Banking Corporation
is the trustee of this fund.
Income Investment Fund
This fund is invested in fixed income securities issued by insurance
companies, financial institutions and the U.S. Government and its agencies.
State Street Bank and Trust Company is the investment manager of this fund.
Chemical Banking Corporation is the trustee of this fund.
Balanced Fund
This fund, of which J.P. Morgan is the investment manager, invests in a
balanced combination of a J.P. Morgan managed bond fund and an equity index
fund. Chemical Banking Corporation is the trustee of this fund.
Such direction may be revised by the Participant quarterly.
Employer contribution -- The Employer shall provide a matching
contribution of 50% of the first 6% of each Participant's contribution. Employer
contributions are invested in the Viacom Inc. Stock Fund. Participants who
commenced employment prior to January 1, 1992 (April 1, 1991 for employees of
the publishing operations) vest in the Employer contribution at a rate of 20%
for each full year of service. Participants who commenced employment after
December 31, 1991 (March 31, 1991 for employees of the publishing operations)
vest in the Employer contribution after the completion of two full years of
service at a rate of 33 1/3% for each of the next three full years of service.
Amounts which have been forfeited in accordance with provisions of the Plan may
be used to defray administrative expenses or reduce future Employer
contributions. Employer matching contributions of $1,041,545 and $1,166,409
during the years ended December 31, 1995 and December 31, 1994, respectively,
were forfeited by terminating employees before those amounts became vested.
Loan Provision -- The Plan permits a Participant to borrow funds from the
Plan using a portion of the Participant's vested account balance as collateral.
All loans require approval by the Retirement Committee. Periodic payroll
deductions are required to repay the loans on a level amortization basis. Loans
involving the purchase of a primary residence may be for any length of time up
to 25 years. Loans for any other reason must be repaid within five years. The
interest rate on the loans will be determined by the Retirement Committee. In
the event of the Participant's termination of employment with the Employer, the
Participant may either repay the loan in full or have the loan balance deducted
from the Participant account.
The number of Participants in each fund as December 31, 1995 was as follows:
Employer Fund
Viacom Inc. Stock Fund........................... 9,924
Employee Funds
Viacom Inc. Stock Fund........................... 2,013
Equity Fund...................................... 5,574
Income Investment Fund........................... 7,278
Balanced Fund.................................... 3,270
F-8
<PAGE>
PARAMOUNT COMMUNICATIONS INC.
EMPLOYEES' SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The total number of Participants in the Plan was less than the sum of the
number of Participants shown above because many of the Participants participated
in more than one fund.
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting records of the Plan are maintained on an accrual basis.
Investments are stated at aggregate current value. Investments in securities
which are traded on national securities exchanges are valued at the last
reported sales price on the last business day of the year; investments traded in
the over-the-counter market and listed securities for which no sale was reported
on that date are valued at the mean between the last reported bid and ask
prices. The Investment Pricing Department of the Trustee establishes current
values for other investments which do not have an established market.
All costs and expenses incurred with regard to the purchase, sale or
transfer of investments are borne by the Plan. Expenses for administering the
Plan may be paid by using Participants' forfeitures.
Security transactions are recorded on the trade date.
Unrealized appreciation (depreciation) of investments represents the change
in the difference between current value and the cost of investments.
Net realized gain (loss) on disposition of investments represents the
difference between the proceeds received and the average cost of investments
sold. Interest income is recorded on the accrual basis. Dividends are recorded
on the ex-dividend rate.
From time to time certain funds of the Plan enter into certain Standard &
Poor's 500 index futures contracts. Gains and losses related to these contracts
are calculated based upon the daily closing price of the futures contracts
index.
NOTE C - INCOME TAX STATUS
The Plan is exempt from federal income tax and the Participant will not be
subject to federal income tax with respect to contributions made by the Employer
to the Participant's account and any earnings thereon or earnings on all
Participant contributions while such amounts are held in trust. The Plan, as
amended through February 1, 1995, received a favorable determination letter from
the Internal Revenue Service, dated August 11, 1995, with respect to the
qualified status of the Plan under Section 401(a) of the Code and the tax-exempt
status of the underlying trust under Section 501(a) of the Code. The Retirement
Committee is not aware of any course of action or series of events that have
occurred that might adversely affect the Plan's qualified status.
F-9
<PAGE>
PARAMOUNT COMMUNICATIONS INC.
EMPLOYEES' SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE D - INVESTMENT IN SECURITIES
The net realized gain on disposition of investments was computed as
follows:
</TABLE>
<TABLE>
<CAPTION>
Employer Fund Employee Funds
------------- ---------------------------------------------------------------------
Income
Viacom Inc Viacom Inc. Equity Investment Balanced Combined
Stock Fund Stock Fund Fund Fund Fund Funds
8ear ended December 31, 1995
<S> <C> <C> <C> <C> <C> <C>
Proceeds ................. $ 49,932,106 $ 10,103,763 $118,249,693 $ 55,352,489 $ 11,585,491 $245,223,542
Cost-average ............. 45,989,446 8,867,017 95,928,626 55,352,489 11,446,272 217,583,850
------------ ------------ ------------ ------------ ------------ ------------
Net realized gain ........ $ 3,942,660 $ 1,236,746 $ 22,321,067 $ 0 $ 139,219 $ 27,639,692
============ ============ ============ ============ ============ ============
Year ended December 31, 1994
Proceeds ................. $162,158,533 $ 75,767,730 $ 18,774,097 $ 48,199,529 $ 13,160,726 $318,060,615
Cost-average ............. 133,369,753 62,897,784 18,774,097 48,199,529 13,146,583 276,387,746
------------ ------------ ------------ ------------ ------------ ------------
Net realized gain ........ $ 28,788,780 $ 12,869,946 $ -0- $ -0- $ 14,143 $ 41,672,869
============ ============ ============ ============ ============ ============
</TABLE>
The fair value of individual investments that represents 5% or more of the
Plan's net assets are as follows:
<TABLE><CAPTION>
December 31
--------------------------------
1995 1994
---- ----
<S> <C> <C>
Viacom Class B Common Stock .................... $142,489,788 $110,324,187
State Street Bank and Trust Company
Government Short-Term Investment Fund .... -- 44,651,600
The guaranteed investment contracts are fully benefit-responsive and are
therefore presented in the financial statements at contract value. The Company
does not expect any employer initiated events that may cause premature
liquidation to a contract at market value. At December 31, 1995, the fair value
of such assets in the aggregate was $100,881,271 with an average yield of 6.29%.
The return on assets for the year ended December 31, 1995 was 6.18%. The
guaranteed investments contracts were transferred to the Viacom Investment Plan
as part of the merger. (See Note G)
F-10
<PAGE>
PARAMOUNT COMMUNICATIONS INC.
EMPLOYEES' SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Plan assigns units to Participants within each of the respective funds.
Total units, net asset value per unit and total net assets in each fund at
December 31, 1995 and 1994 were as follows:
Total Net Asset Total Net
Fund Units Value per Unit Asset Value
- ------------------------------ ----------- -------------- ------------
December 31, 1995:
- -----------------
Employer Fund:
Viacom Inc. Stock Fund... 53,034,914 $2.44 $129,488,049
Employee Funds:
Viacom Inc. Stock Fund... 31,991,212 0.43 13,904,263
Equity Fund.............. 42,268,007 1.50 63,544,713
Income Investment Fund... 89,997,390 1.23 110,707,929
Balanced Fund............ 21,635,133 1.18 25,583,201
Clearing Fund.............. 635,070
Loans...................... 12,394,732
----------
Net assets available for benefits $356,257,957
============
December 31, 1994:
- -----------------
Employer Fund:
Viacom Inc. Stock Fund... 88,019,692 $1.44 $127,101,369
Employee Funds:
Viacom Inc. Stock Fund... 4,658,283 1.69 7,855,387
Equity Fund.............. 21,742,289 2.46 53,485,660
Income Investment Fund... 69,914,718 1.86 129,740,052
Balanced Fund............ 16,807,797 1.07 17,911,997
Clearing Fund.............. 868,974
Loans...................... 13,074,397
----------
Net assets available for benefits $350,037,836
============
NOTE E -- RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for benefits per
the financial statements to the Form 5500:
</TABLE>
<TABLE>
December 31, 1995 December 31, 1994
----------------- -----------------
<S> <C> <C>
Net assets available for benefits per the financial statements $ 356,257,957 $ 350,037,836
Amounts allocated to withdrawing participants ................ (9,072,073) (13,572,089)
------------- -------------
Net assets available for benefits per the Form 5500: ......... $ 347,185,884 $ 336,465,747
============= =============
</TABLE>
The following is a reconciliation of benefits paid to participants per the
financial statements to the Form 5500 for the year ended December 31, 1995:
Benefits paid to participants per the financial statements.......$ 59,457,937
Less: Amounts allocated to withdrawing participants at
December 31, 1994................................................ (13,572,089)
Add: Amounts allocated to withdrawing participants at
December 31, 1995................................................ 9,072,073
--------------
Benefits paid to participants per the Form 5500..................$ 54,957,921
==============
F-11
<PAGE>
PARAMOUNT COMMUNICATIONS INC.
EMPLOYEES' SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Amounts allocated to withdrawing participants are recorded on the Form 5500
for benefit claims that have been processed and approved for payment prior to
year end but are not yet paid as of that date.
NOTE F - TERMINATION PRIORITIES
In the event that the Plan is terminated, subject to conditions set forth in
ERISA, the Plan provides that the net assets of the Plan be distributed to
participants in proportion to their respective interests in such net assets.
NOTE G - SUBSEQUENT EVENTS
Effective January 1, 1996, the Plan merged with and into the Viacom Investment
Plan ("VIP"), a defined contribution plan sponsored by Viacom. The following
paragraphs describe the significant effects of the merger with VIP.
Putnam Fiduciary Trust Company is the trustee and custodian of VIP assets. VIP
participants have the option of investing their contributions or existing
account balances among the following funds within the VIP: (1) Putnam Voyager
Fund; (2) Putnam Investors Fund; (3) George Putnam Fund of Boston; (4) Capital
Research EuroPacific Growth Fund; (5) Putnam Fund for Growth and Income; (6)
Putnam Income Fund; (7) Certus Interest Income Fund; and (8) the Viacom Common
Stock Fund. Each of the funds, except for the Certus Interest Income Fund, the
Capital Research EuroPacific Growth Fund and the Viacom Common Stock Fund, are
registered investment companies managed by Putnam Management Company, Inc. and
therefore identified as a party-in-interest. The Certus Interest Income Fund,
which is managed by Certus Financial Corporation, primarily invests in
guaranteed investment contracts and bank investment contracts, some of which are
created by way of the concurrent purchase of a bank guarantee contract and a
United States government security. The Capital Research EuroPacific Growth Fund
is a registered investment company managed by Capital Research and Management
Company. Investment elections are required to be in multiples of 5% and can be
changed at any time. The VIP is intended to meet the requirements of ERISA
Section 404 (c). Thus to the extent Participants exercise control over the
investment of contributions, neither the VIP nor any VIP fiduciary will be
responsible for any losses which may occur.
The VIP provides for Company matching contribution amounts equal to 50% of the
first 6% of annual compensation that is contributed on a before-tax basis if
base pay is $65,000 or less as of a specified date (5% of annual compensation if
base pay is greater than $65,000). Participants may contribute up to 15% of
annual compensation on a before-tax, after-tax or combination basis, subject to
compliance with the Code limitations. The VIP's vesting schedule will be 20% per
year of service, becoming fully vested after five years.
Participants are eligible to receive loans based on their account balances. The
maximum loan available to a participant is the lesser of 50% of participants'
vested account balance or $50,000, reduced by the highest outstanding balance of
any VIP loan made to the Participant during the twelve month period ending on
the day before the loan is made.
F-12
<PAGE>
<TABLE>
Schedule I
PARAMOUNT COMMUNICATIONS INC. EMPLOYEES' SAVINGS PLAN
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1995
<CAPTION>
(C) UNIT/PRINCIPAL
(B)IDENTITY OF ISSUE, BORROWING LESSOR OR AMOUNT/SHARES/MATURITY/
SIMILAR PARTY INTEREST RATES (D) COST (E) CURRENT VALUE
-------------------------------------- ----------------------- ------- ----------------
<S> <C> <C> <C>
EMPLOYER FUND:
VIACOM INC. STOCK FUND
* Viacom Class B Common Stock 2,678,393 $104,531,385 $126,888,892
* Viacom Inc. 8% Subordinated Exchangeable
Debentures due 7/7/2006 .................... 5 5,075 5,088
* Viacom Inc. Warrants to purchase
Class B Common Stock
Expire 7/7/97 ............................ 315 693 905
Expire 7/7/99 ............................ 187 622 1,029
* Chemical Bank Short-Term
Investment Fund ............................ 3,142 3,142 3,142
------------ ------------
TOTAL VIACOM INC. STOCK FUND-EMPLOYER ............ 104,540,917 126,899,056
EMPLOYEE FUNDS:
VIACOM INC. STOCK FUND
* Viacom Class B Common Stock ................... 329,307 12,397,353 15,600,896
* Viacom Inc. Warrants to purchase
Class B Common Stock
Expire 7/7/97 ................................ 6 18 17
Expire 7/7/99 ................................ 3 15 17
* Chemical Bank Short-Term
Investment Fund ............................ 275 275 275
------------ ------------
TOTAL VIACOM INC. STOCK FUND-EMPLOYEE......... 12,397,661 15,601,205
EQUITY FUND
TEMPORARY INVESTMENTS
Bankers Trust United States
Treasury Bills ............................ 2,160,000 2,144,453 2,144,453
Engelhard Corp................................ 1 9 11
--------- ---------
TOTAL EQUITY FUND ......................... 2,144,462 2,144,464
</TABLE>
*Identified as a party-in-interest to the Plan
S-1
<PAGE>
<TABLE>
Schedule I
PARAMOUNT COMMUNICATIONS INC. EMPLOYEES' SAVINGS PLAN
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1995
<CAPTION>
(C) UNIT/PRINCIPAL
(B)IDENTITY OF ISSUE, BORROWING LESSOR OR AMOUNT/SHARES/MATURITY/
SIMILAR PARTY INTEREST RATES (D) COST (E) CURRENT VALUE
-------------------------------------- ----------------------- ------- ----------------
<S> <C> <C> <C>
INCOME INVESTMENT FUND
TEMPORARY INVESTMENTS
State Street Bank & Trust Company
Government Short-Term
Investment Fund ............................................ 9,279,029 9,279,029 9,279,029
State Street Bank & Trust Company
Segregated Balance To Be Invested
In Contract ................................................... 3,655,380 3,655,380
---------- ----------
TOTAL TEMPORARY INVESTMENTS ................................... 12,934,409 12,934,409
GUARANTEED INVESTMENT CONTRACTS
Bankers Trust Company
4.869%; interest and principal due
monthly commencing November 15,
1995; final payment due
November 15, 1997 .......................................... 9,989,712 9,989,712 9,989,712
Bankers Trust Company
6.45%; interest and principal due
December 31, 1996 .......................................... 6,340,193 6,340,193 6,340,193
J.P. Morgan
5.329%; interest and principal due
semi-annually commencing July 15, 1996;
final payment due January 15, 1999 ......................... 11,397,369 11,397,369 11,397,369
Principal Mutual Life Insurance Co. ...........................
9.04%; interest and principal due
September 30, 1996 ......................................... 1,839,381 1,839,381 1,839,381
Principal Mutual Life Insurance Co. ...........................
8.10%; interest and principal due
June 30, 1996 .............................................. 1,816,816 1,816,816 1,816,816
Prudential Insurance Company of America
7.62%; interest and principal due
December 31, 1995 .......................................... 1,332,027 1,332,027 1,332,027
Prudential Insurance Company of America
8.72%; interest and principal
due March 31, 1994 and
December 31, 1995 .......................................... 1,899,233 1,899,233 1,899,233
Rabobank of the Netherlands 5.6% .............................. 8,756,369 8,756,369 8,756,369
S-2
</TABLE>
<PAGE>
<TABLE>
SCHEDULE I
PARAMOUNT COMMUNICATIONS INC. EMPLOYEES' SAVINGS PLAN
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1995
<CAPTION>
(B)IDENTITY OF ISSUE, BORROWING LESSOR OR AMOUNT/SHARES/MATURITY/
SIMILAR PARTY INTEREST RATES (D) COST (E) CURRENT VALUE
-------------------------------------- ----------------------- ------- ----------------
<S> <C> <C> <C>
Providan Capital Management
7.26% ; interest and prinicipal due
March 31, 1997 and 1999 ..................................................... 6,318,374 6,318,374 6,318,374
CDC Investment Management Corp.
7.21% ; interest and principal due quarterly
commencing April 25, 1995; final payment due
October 25, 2000 ............................................................ 6,492,603 6,492,603 6,492,603
Providian Capital Management
7.30% ; interest and principal due
December 31,1997 and 1998
and June 30, 1999 ........................................................... 6,298,250 6,298,250 6,298,250
New York Life
7.18%; interest and principal due
April 1, 1996 and March 31, 2000............................................. 6,273,164 6,273,164 6,273,164
CDC Investment Management Corp.
6.88%; interest and principal due
quarterly commencing August 1, 1995;
final payment due February 1, 1999
and May 3, 1999 ............................................................. 7,547,955 7,547,955 7,547,955
New York Life
7.45%; interest and principal due
September 30, 1997, 1998 and 1999............................................ 6,332,843 6,332,843 6,332,843
New York Life
6%; interest and principal due
September 30, 1997,
March 31, 1998 and 1999 ..................................................... 5,053,619 5,053,619 5,053,619
Union Bank of Switzerland
4.945%; interest and principal due
November 15, 1996 and January 15, 1998 ...................................... 10,455,210 10,455,210 10,455,210
----------- -----------
TOTAL GUARANTEED INVESTMENT
CONTRACTS ................................................................ 98,143,118 98,143,118
----------- -----------
TOTAL INCOME INVESTMENT FUND .................................................... 111,077,527 111,077,527
S-3
</TABLE>
<PAGE>
<TABLE><CAPTION>
SCHEDULE I
PARAMOUNT COMMUNICATIONS INC. EMPLOYEES' SAVINGS PLAN
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1995
(C) UNIT/PRINCIPAL
(B)IDENTITY OF ISSUE, BORROWING LESSOR OR AMOUNT/SHARES/MATURITY/
SIMILAR PARTY INTEREST RATES (D) COST (E) CURRENT VALUE
-------------------------------------- ----------------------- ------- ----------------
<S> <C> <C> <C>
BALANCED FUND
* Chemical Bank Short-Term
Investment Fund ........................................ 115 115 115
J.P. Morgan Investment Management Inc.
Liquidity Fund ......................................... 2,534 2,534,266 2,534,266
Managed Bond Fund ...................................... 64,463 9,194,201 12,502,083
Research Enhanced Index Fund ........................... 55,812 7,390,428 7,787,560
------------ ------------
TOTAL BALANCED FUND ................................. 19,119,010 22,824,024
CLEARING FUND
* Chemical Bank Short-Term
Investment Fund ........................................ 127,091 127,091 127,091
------------ ------------
PARTICIPANT LOANS RECEIVABLE .................................. 12,394,732
----------
TOTAL INVESTMENTS ........................... $249,406,668 $291,068,099
============ ============
</TABLE>
*Identified as a party-in-interest to the Plan.
S-4
<PAGE>
<TABLE>
SCHEDULE II
PARAMOUNT COMMUNICATIONS INC. EMPLOYEES' SAVINGS PLAN
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
WHICH WERE BOTH ACQUIRED AND DISPOSED OF WITHIN THE PLAN
YEAR ENDED DECEMBER 31, 1995
(b)Unit/Principal
(a) Identity of issue, borrowing lessor or Amount/Shares/Maturity/ (c) Cost of (d) Proceeds of
similar party Interest Rates acquisitions Dispositions
-------------- -------------- -------------- ------------
<S> <C> <C> <C>
EMPLOYER FUND:
VIACOM INC. STOCK FUND
Chemical Bank Short-Term Investment Fund ...................... 32,487,688 $32,487,688 $32,487,688
State Street Bank
Short-Term Investment Fund .............................. 90,672 90,672 90,672
State Street Bank Warrants .................................... 11,234 11,234 11,234
Viacom Inc. Class B Common Stock .............................. 495,324 23,300,041 22,927,541
EMPLOYEE FUNDS:
VIACOM INC. STOCK FUND
Chemical Bank Short-Term Investment Fund ..................... 563,561 563,561 563,561
State Street Bank
Short-term Investment Fund .............................. 14 14 14
State Street Bank Warrants .................................... 734 734 734
Viacom Inc. Class B Common Stock .............................. 12,657 630,554 603,687
</TABLE>
S-5
<PAGE>
<TABLE>
SCHEDULE II
PARAMOUNT COMMUNICATIONS INC. EMPLOYEES' SAVINGS PLAN
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
WHICH WERE BOTH ACQUIRED AND DISPOSED OF WITHIN THE PLAN
YEAR ENDED DECEMBER 31, 1995
<CAPTION>
(b)Unit/Principal
(a) Identity of issue, borrowing lessor or Amount/Shares/Maturity/ (c) Cost of (d) Proceeds of
similar party Interest Rates acquisitions Dispositions
-------------- -------------- -------------- ------------
<S> <C> <C> <C>
EQUITY FUND
Bankers Trust Pyramid Discretionary Cash Fund .................... 11,296,442 11,296,442 11,296,442
Abbott Labs ...................................................... 400 14,012 15,980
Aetna Life & Gas Co. ............................................. 300 15,984 21,102
Albertsons Inc. .................................................. 100 3,078 3,211
Allied Signal Inc. ............................................... 100 3,841 4,689
Allstate Corp. ................................................... 800 25,116 32,832
Alltel Corp. ..................................................... 2,500 70,700 71,475
Aluminum Co. America ............................................. 400 24,287 19,828
Alza Corp. ....................................................... 600 13,743 14,760
American Brands Inc. ............................................. 800 29,824 35,384
American Electric Pwr Inc. ....................................... 100 3,478 4,004
American Express Co. ............................................. 800 30,199 32,264
American Greetings Corp. ......................................... 100 2,916 2,746
American Home Products Corp. ..................................... 200 14,356 18,426
American International Group Inc. ................................ 500 46,090 47,285
American Stores Co. .............................................. 400 10,012 10,568
Ameritech Corp. .................................................. 500 21,328 28,620
Amgen Inc. ....................................................... 300 19,734 18,057
Amoco Corp. ...................................................... 500 30,328 34,825
Andrew Corp. ..................................................... 100 5,628 3,759
Anheuser Busch Co's Inc. ......................................... 100 5,691 6,478
Apple Computer ................................................... 400 4,178 13,676
Applied Materials Inc. ........................................... 1,800 105,128 86,670
Archer Daniels Midland Co. ....................................... 500 9,390 8,990
AT & T Corp. ..................................................... 2,000 109,610 126,680
Atlantic Richfield Co. ........................................... 100 10,978 11,164
Avon Products Inc. ............................................... 200 11,506 14,968
Bank Boston Corp. ................................................ 400 12,262 18,192
</TABLE>
S-6
<PAGE>
<TABLE>
SCHEDULE II
PARAMOUNT COMMUNICATIONS INC. EMPLOYEES' SAVINGS PLAN
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
WHICH WERE BOTH ACQUIRED AND DISPOSED OF WITHIN THE PLAN
YEAR ENDED DECEMBER 31, 1995
<CAPTION>
(b)Unit/Principal
(a) Identity of issue, borrowing lessor or Amount/Shares/Maturity/ (c) Cost of (d) Proceeds of
similar party Interest Rates acquisitions Dispositions
-------------- -------------- -------------- ------------
<S> <C> <C> <C>
Bank of New York Inc. ............................................ 2,500 83,480 121,084
Bankamerica Corp. ................................................ 100 4,778 6,285
Barrick Gold Corp. ............................................... 600 13,293 15,564
Bausch & Lomb Inc. ............................................... 100 3,341 3,934
Baxter International Inc. ........................................ 100 3,166 3,984
Bell Atlantic Corp. .............................................. 500 26,828 33,055
Biomet Inc. ...................................................... 1,000 16,655 17,710
Boeing Co. ....................................................... 800 46,112 58,904
Boston Scientific Corp. .......................................... 1,700 37,057 79,645
Bristol Myers Squibb Co. ......................................... 800 51,524 66,320
Browning Ferris Inds Inc. ........................................ 400 12,612 11,548
Cabletron Sys Inc. ............................................... 900 47,165 70,956
Caterpillar Inc. ................................................. 400 23,025 23,792
Chase Manhattan Corp. ............................................ 400 18,787 22,796
Chemical Banking Corp. ........................................... 500 29,265 28,320
Chevron Corp. .................................................... 300 14,072 15,537
Chrysler Corp. ................................................... 2,500 128,600 129,925
Cigna Corp. ...................................................... 500 37,640 52,660
Cisco System Inc. ................................................ 1,400 60,780 94,766
Citicorp ......................................................... 1,300 72,152 82,030
Clark Equip Co. .................................................. 500 27,827 43,000
Coca Cola Co. .................................................... 1,800 103,716 130,644
Colgate Palmolive Co. ............................................ 100 6,328 7,107
Columbia/HCA Healthcare Corp. .................................... 1,700 72,501 84,609
Comcast Corp. .................................................... 400 6,412 7,316
Compaq Computer Corp. ............................................ 500 17,953 23,810
Computer Assoc International Inc. ................................ 100 5,766 5,871
Conagra Inc. ..................................................... 300 9,984 12,012
Conrail Inc. ..................................................... 100 5,653 6,468
Cooper Inds Inc. ................................................. 300 11,634 10,944
Corning Inc. ..................................................... 300 9,722 9,159
CSX Corp. ........................................................ 100 7,741 4,658
CUC International Inc. ........................................... 1,400 57,267 57,267
Delta Air Lines Inc. ............................................. 300 17,259 21,645
Dominion Res Inc. ................................................ 600 23,343 24,804
</TABLE>
S-7
<PAGE>
<TABLE>
SCHEDULE II
PARAMOUNT COMMUNICATIONS INC. EMPLOYEES' SAVINGS PLAN
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
WHICH WERE BOTH ACQUIRED AND DISPOSED OF WITHIN THE PLAN
YEAR ENDED DECEMBER 31, 1995
<CAPTION>
(b)Unit/Principal
(a) Identity of issue, borrowing lessor or Amount/Shares/Maturity/ (c) Cost of (d) Proceeds of
similar party Interest Rates acquisitions Dispositions
-------------- -------------- -------------- ------------
<S> <C> <C> <C>
Dow Chemical Co. ................................................. 600 42,318 41,802
Dresser Inds Inc. ................................................ 200 4,181 4,834
DSC Communications Corp. ......................................... 400 22,562 14,692
Du Pont .......................................................... 500 28,465 33,710
Dun & Bradstreet Corp. ........................................... 200 10,256 12,768
Eastman Kodak Co. ................................................ 700 37,121 46,046
Eaton Corp. ...................................................... 100 4,853 5,372
Emerson Electric Co. ............................................. 100 6,578 7,818
Enron Corp. ...................................................... 300 9,759 11,298
Exxon Corp. ...................................................... 1,500 101,170 120,240
Federal Home Ln Mtg Corp. ........................................ 400 23,562 32,328
Federal National Mortgage Assn. Co. .............................. 200 18,219 24,130
First Bank Sys Inc. .............................................. 1,500 77,301 75,135
First Data Corp. ................................................. 700 40,009 44,345
Fluor Corp. ...................................................... 100 4,841 6,523
Ford Motor Co. ................................................... 3,200 95,171 91,744
FPL Group Inc. ................................................... 200 7,206 8,940
Freeport-McMoran Copper & Gold Inc. .............................. 2,400 64,248 66,120
General Electric Co. ............................................. 2,500 142,488 173,125
General Mills Inc. ............................................... 200 12,056 11,274
General Motors Corp. ............................................. 1,600 70,672 79,456
General Pub Utilities Corp. ...................................... 2,300 70,219 77,119
General Re Corp. ................................................. 100 13,028 15,045
Georgia Pac. Corp. ............................................... 100 7,878 7,024
Gillette Co. ..................................................... 200 12,519 10,724
Grainger W W Inc. ................................................ 200 12,531 13,168
GTE Corp. ........................................................ 1,300 46,477 55,224
H & R Block Inc. ................................................. 100 3,616 4,072
Hallburton Co. ................................................... 100 3,716 5,022
H J Heinz Co. .................................................... 200 7,981 6,782
Hewlett Packard Co. .............................................. 600 60,056 50,274
Home Depot Inc. .................................................. 900 40,527 42,453
Homestake Mng Co. ................................................ 200 3,181 3,106
Honeywell Inc. ................................................... 300 11,372 13,797
Houston Inds Inc. ................................................ 200 8,156 4,806
S-8
<PAGE>
</TABLE>
<TABLE>
SCHEDULE II
PARAMOUNT COMMUNICATIONS INC. EMPLOYEES' SAVINGS PLAN
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
WHICH WERE BOTH ACQUIRED AND DISPOSED OF WITHIN THE PLAN
YEAR ENDED DECEMBER 31, 1995
<CAPTION>
(b)Unit/Principal
(a) Identity of issue, borrowing lessor or Amount/Shares/Maturity/ (c) Cost of (d) Proceeds of
similar party Interest Rates acquisitions Dispositions
------------------------------------ -------------- -------------- ------------
<S> <C> <C> <C>
IBM Corp................................................. 800 66,387 72,976
Inco Ltd................................................. 300 8,447 9,837
Intel Corp............................................... 1,100 81,633 67,705
Intergraph Corp.......................................... 1,700 22,364 27,166
International Paper Co................................... 200 15,631 7,956
J C Penny Inc............................................ 200 8,581 9,406
Johnson & Johnson........................................ 800 45,624 66,400
Kellogg Co............................................... 600 32,568 44,994
Kroger Co................................................ 300 7,997 11,166
Laidlaw Inc.............................................. 2,600 22,828 26,260
Lockheed Martin Corp..................................... 3,393 105,183 105,183
Loews Corp............................................... 800 93,624 93,624
Lotus Dev Corp........................................... 300 13,359 19,200
McDonalds Corp........................................... 1,000 34,293 43,890
MCI Communications Corp.................................. 2,000 45,460 50,760
Mellon Bank Corp......................................... 200 7,856 10,518
Merck & Co. Inc.......................................... 1,700 79,289 106,267
Micron Technology Inc.................................... 300 18,159 13,221
Microsoft Corp........................................... 1,200 84,799 104,496
Minnesota Mng & Mfg Co................................... 700 38,046 44,338
Mobil Corp............................................... 400 35,612 44,396
Monsanto Co.............................................. 100 7,941 1,155
Morgan JP & Co. Inc...................................... 100 6,291 7,805
Morgan Stanley Group Inc................................. 900 89,672 72,871
Morton International Inc................................. 400 11,862 13,888
Motorola Inc............................................. 1,500 91,133 87,195
National Semiconductor Corp.............................. 100 1,766 2,476
Nationsbank.............................................. 300 15,384 19,752
Newmount Mng Corp........................................ 100 3,703 4,539
Northern Telecom Ltd. ................................... 700 24,521 30,485
Novell Inc............................................... 1,700 35,089 26,996
Nucor Corp............................................... 100 5,353 5,452
Oracle Corp.............................................. 700 23,196 29,624
Panhandle Eastn Corp..................................... 600 13,368 16,560
Parker Hannifin Corp..................................... 100 4,716 3,378
PepsiCo Inc.............................................. 1,200 51,840 65,064
</TABLE>
S-9
<PAGE>
<TABLE>
SCHEDULE II
PARAMOUNT COMMUNICATIONS INC. EMPLOYEES' SAVINGS PLAN
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
WHICH WERE BOTH ACQUIRED AND DISPOSED OF WITHIN THE PLAN
YEAR ENDED DECEMBER 31, 1995
<CAPTION>
(b)Unit/Principal
(a) Identity of issue, borrowing lessor or Amount/Shares/Maturity/ (c) Cost of (d) Proceeds of
similar party Interest Rates acquisitions Dispositions
-------------- -------------- -------------- ------------
<S> <C> <C> <C>
Pfizer Inc. ................................................... 400 32,962 25,712
Phelps Dodge Corp. ............................................ 100 5,491 5,916
Philip Morris Cos Inc. ........................................ 700 50,371 61,565
Placer Dome Inc. .............................................. 100 2,066 2,447
PPG Inds Inc. ................................................. 900 33,890 40,230
Premark International Inc. .................................... 100 4,316 5,033
Proctor & Gamble Co. .......................................... 1,100 77,146 89,265
Quaker Oats Co. ............................................... 100 3,341 3,425
R R Donnelley & Sons Co. ...................................... 500 16,828 19,330
Raytheon Co. .................................................. 100 7,066 4,817
Republic NY Corp. ............................................. 500 27,948 31,239
Royal Dutch Pete Co. .......................................... 600 71,718 82,872
Sara Lee Corp. ................................................ 300 7,809 9,354
SCECORP ....................................................... 200 3,331 3,458
Schering Plough Corp. ......................................... 300 23,222 16,413
Schlumberger Ltd .............................................. 300 18,097 20,517
Scott Paper Co. ............................................... 100 7,878 6,289
Seagram Ltd. .................................................. 800 24,324 27,752
Sears Roebuck & Co. ........................................... 900 43,565 35,406
Shawmut National Corp. ........................................ 700 22,246 18,438
Silicon Graphics Inc. ......................................... 2,700 93,231 82,377
Southern Co. .................................................. 400 8,262 9,584
Southwest Airlines Co. ........................................ 200 3,556 4,578
Sprint Corp. .................................................. 700 21,021 26,852
Stone Container Corp. ......................................... 600 14,493 9,306
Sun Microsystems .............................................. 500 16,890 22,465
Suntrust Banks Inc. ........................................... 400 21,487 27,236
Sysco Corp. ................................................... 100 2,866 3,191
Tandy Corp. ................................................... 100 4,641 4,117
Tele Communications Inc. ...................................... 800 18,824 16,064
Tellabs Inc. .................................................. 900 39,843 34,182
Tenneco Inc. .................................................. 400 17,912 19,364
Texas Instruments Inc. ........................................ 600 49,918 36,180
Texas Utilitis Co. ............................................ 200 6,606 7,852
Texco Inc. .................................................... 200 12,806 15,252
Time Warner Inc. .............................................. 200 7,806 7,596
Toys R US Inc. ................................................ 200 5,831 4,606
</TABLE>
S-10
<PAGE>
<TABLE>
SCHEDULE II
PARAMOUNT COMMUNICATIONS INC. EMPLOYEES' SAVINGS PLAN
ITEM 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
WHICH WERE BOTH ACQUIRED AND DISPOSED OF WITHIN THE PLAN
YEAR ENDED DECEMBER 31, 1995
<CAPTION>
(b)Unit/Principal
(a) Identity of issue, borrowing lessor or Amount/Shares/Maturity/ (c) Cost of (d) Proceeds of
similar party Interest Rates acquisitions Dispositions
-------------- -------------- -------------- ------------
<S> <C> <C> <C>
Travelers Group Inc. ............................................. 600 23,718 34,620
TRW Inc. ......................................................... 200 13,356 15,382
Unical Corp. ..................................................... 500 14,140 14,840
Unicom Corp. ..................................................... 600 15,618 19,524
Union Pac Corp. .................................................. 200 12,031 12,846
United Healthcare Corp. .......................................... 600 27,993 35,232
Upjohn Co. ....................................................... 100 3,416 4,522
US Healthcare Inc. ............................................... 200 8,806 8,612
US West Inc. ..................................................... 300 12,359 10,896
Usx-US Steel Group ............................................... 100 3,453 3,060
Viacom Inc. ...................................................... 1,400 67,117 66,486
Wal Mart Stores Inc. ............................................. 2,200 52,041 50,534
Walt Disney Co. .................................................. 800 44,474 47,592
Warner Lambert Co. ............................................... 100 7,653 9,167
Weyerhaeuser Co. ................................................. 100 4,228 4,384
Willamette Inds Inc. ............................................. 600 40,968 33,438
WMX Technologies Inc. ............................................ 26,955 28,590
1,000
BALANCED FUND
Chemical Bank Short-Term Investment Fund ......................... 5,215,413 5,215,413 5,215,413
Treasury Bonds 8.5% 2/15/2020 .................................... 100 118,344 125,109
Treasury Bonds 7.5% 11/15/2001 ................................... 114 123,441 123,236
J.P. Morgan Investment Management Inc. ...........................
Liquidity Fund .............................................. 3,694 3,691,913 3,694,828
Managed Bond Fund ........................................... 1,726 219,811 221,677
</TABLE>
S-11
<PAGE>
<TABLE>
PARAMOUNT COMMUNICATIONS INC. EMPLOYEES' SAVINGS PLAN
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1995
<CAPTION>
(Description of Asset Current Value
Including Interest Rate of Asset on
and Maturity in Trans- Purchase Selling Cost of Transaction
Identify of Party Involved Case Of Loan) Action Price Price Asset Date
-------------------------- ------------- ------ ----- ----- ----- ----
<S> <C>
SINGLE TRANSACTION:
- ------------------
State Street Bank
Short-Term Investment Fund .......... Purchase of participation 1 $46,456,974
State Street Bank
Government Short-Term
Investment Fund ..................... Sale of participation 1 $46,455,600 $46,455,600 $46,455,600
Bankers Trust Pyramid Discretionary
Cash Fund ........................... Purchase of participation 1 $36,238,565
Sale of participation 1 $35,764,855 $35,764,855 $35,764,855
SERIES TRANSACTIONS:
Chemical Bank Short-Term
Investment Fund ..................... Purchase of participation 311 $75,138,267
Sale of participation 281 $78,428,211 $78,428,211 $78,428,211
State Street Bank
Short-Term Investment Fund .......... Purchase of participation 87 $84,420,104
Sale of participation 45 $75,141,075 $75,141,075 $75,141,075
State Street Bank
Government Short-term
Investment Fund ..................... Sale of participation 4 $48,604,600 $48,604,600 $48,604,600
Bankers Trust Pyramid Discretionary
Cash Fund ........................... Purchase of participation 157 $62,309,616
Sale of participation 96 $66,121,372 $66,121,372 $66,121,372
Viacom Inc. Class B Common
Stock ............................... Purchase of 886,886 shares 64 $41,876,330
Sale of 514,281 shares 77 $23,830,441 $21,120,401 $23,830,441
<CAPTION>
Net Cain
Identify of Party Involved or (Loss)
-------------------------- ---------
<S> <C>
SINGLE TRANSACTION:
- ------------------
State Street Bank
Short-Term Investment Fund .......... Purchase of participation
State Street Bank
Government Short-Term
Investment Fund ..................... Sale of participation
Bankers Trust Pyramid Discretionary
Cash Fund ........................... Purchase of participation
Sale of participation
SERIES TRANSACTIONS:
Chemical Bank Short-Term
Investment Fund ..................... Purchase of participation
Sale of participation
State Street Bank
Short-Term Investment Fund .......... Purchase of participation
Sale of participation
State Street Bank
Government Short-term
Investment Fund ..................... Sale of participation
Bankers Trust Pyramid Discretionary
Cash Fund ........................... Purchase of participation
Sale of participation
Viacom Inc. Class B Common
Stock ............................... Purchase of 886,886 shares
Sale of 514,281 shares $ 2,710,040
S-12
</TABLE>
<PAGE>
Exhibit I
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Prospectus
constituting part of the Registration Statements on Form S-8 (Nos. 33-60943,
33-41934, 33-56088, 33-59049, 33-59141, 33-55173 and 33-55709) of Viacom Inc. of
our report dated June 28, 1996, relating to the financial statements and
schedules of the Paramount Communications Inc. Employees' Savings Plan
appearing on page F-2 of this Form 11-K.
PRICE WATERHOUSE LLP
New York, New York
June 28, 1996
