<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(X) ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 for the fiscal year
ended December 31, 1993 or
( ) TRANSITION REPORTS PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from __________ to __________
Commission File No. 1-9583
A. Full title of the plan and the address of the plan, if
different from that of the issuer named below:
MBIA INC. EMPLOYEES PROFIT SHARING AND 401 (K) SALARY
DEFERRAL PLAN
B. Name of issuer of the securities held pursuant to the
plan and the address of its principal executive office:
MBIA INC.
113 King Street
Armonk, N. Y. 10504
PAGE 1 OF 13
<PAGE>
MBIA INC.
EMPLOYEES PROFIT SHARING AND
401(K) SALARY DEFERRAL PLAN
FINANCIAL STATEMENTS
FOR THE YEARS ENDED
DECEMBER 31, 1993 AND 1992
<PAGE>
MBIA INC.
EMPLOYEES PROFIT SHARING AND 401(K) SALARY DEFERRAL PLAN
FINANCIAL STATEMENTS
INDEX
-----
Pages
-----
Report of Independent Accountants 2
Financial Statements:
Statements of Net Assets Available for Plan
Benefits as of December 31, 1993 and 1992 3
Statements of Changes in Net Assets Available
for Plan Benefits for the years ended
December 31, 1993 and 1992 4
Notes to Financial Statements 5-10
1
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
---------------------------------
TO THE PLAN ADMINISTRATOR OF
MBIA INC. EMPLOYEES PROFIT SHARING AND 401(K) SALARY DEFERRAL PLAN:
We have audited the accompanying statements net assets available
for plan benefits of the MBIA Inc. Employees Profit Sharing and
401(K) Salary Deferral Plan as of December 31, 1993 and 1992, and
the related statements of changes in net assets available for
plan benefits for the years then ended. These financial
statements are the responsibility of the plan administrator. Our
responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts of disclosures in the financial statements. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the net assets
available for plan benefits of the MBIA Inc. Employees Profit
Sharing and 401(K) Salary Deferral Plan as of December 31, 1993
and 1992, and the changes in net assets available for plan
benefits for the years then ended in conformity with generally
accepted accounting principles.
COOPERS & LYBRAND
New York, New York
June 24, 1994.
2
<PAGE>
MBIA INC.
EMPLOYEES PROFIT SHARING AND 401(K) SALARY DEFERRAL PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
December 31, 1993 December 31, 1992
----------------- -----------------
Assets:
Allocated share of
Master Trust net
assets, at fair value $21,069,322 $16,742,600
Receivables:
Employee contributions --- 116,405
Employer contributions --- 111,723
----------- -----------
Total assets $21,069,322 $16,970,728
Liabilities:
Other liabilities 7,883 ---
----------- -----------
Net assets available for
plan benefits $21,061,439 $16,970,728
=========== ===========
The accompanying notes are an integral
part of the financial statements.
3
<PAGE>
MBIA INC.
EMPLOYEES PROFIT SHARING AND 401(K) SALARY DEFERRAL PLAN
STATEMENTS OF CHANGES IN NET ASSETS
AVAILABLE FOR PLAN BENEFITS
Years ended December 31
--------------------------
1993 1992
------------ ------------
Contributions:
Employees' salary deferral $ 1,774,803 $ 1,489,575
Employer 1,049,244 723,970
Income from investment activities 1,634,460 2,594,444
Benefit distributions (367,796) (346,943)
----------- ----------
Net increase 4,090,711 4,461,046
Net assets available for plan
benefits, beginning of year 16,970,728 12,509,682
----------- -----------
Net assets available for plan
benefits, end of year $21,061,439 $16,970,728
=========== ===========
The accompanying notes are an integral
part of the financial statements.
4
<PAGE>
MBIA INC.
EMPLOYEES PROFIT SHARING AND 401(K) SALARY DEFERRAL PLAN
NOTES TO FINANCIAL STATEMENTS
1. PLAN DESCRIPTION
- - --------------------
The MBIA Inc. Employees Profit Sharing and 401(K) Salary Deferral
Plan (the "Plan") is a defined contribution plan for employees of
Municipal Bond Investors Assurance Corporation and MBIA Municipal
Investors Service Corporation, which are wholly-owned
subsidiaries of MBIA Inc. (the "Company"). Effective April 1,
1987, a 401(K) deferral feature was implemented enabling eligible
participants to defer up to 10% of their total eligible
compensation. Matching contributions are made by the Company for
those participants making salary deferred contributions at the
rate of 100% of the participant's contribution and up to a
maximum of 5% of the participant's eligible compensation.
Participants may request loans from their accounts in accordance
with established guidelines.
The assets of both the Plan and the MBIA Inc. Employees Pension
Plan are managed by Fidelity Management Trust Company
("Fidelity"), the investment advisor, master trustee and
custodian. The participants of the Plan have the option to
direct the investment of their contribution share into one or
more of eight Fidelity funds or the Employer Stock Fund.
Vesting in employer contributions begins after three years of
service and full vesting is achieved after five years of service.
Participants are fully vested in their salary deferred
contributions at all times. Upon reaching the normal retirement
date, death or becoming disabled, a participant becomes fully
vested in the Company's contributions. Nonvested benefits remaining
after termination of employment serve to reduce future Company
contributions.
The benefit to which a participant is entitled is the benefit
that can be provided by the contributions and income thereon,
including net realized and unrealized investment gains and losses
of each participant's account. Upon retirement, death or
termination, a participant or beneficiary can elect to receive a
lump-sum distribution, installment distributions or purchase a
joint and survivor annuity contract or single life annuity
contract.
The Plan is subject to the provisions of the Employee Retirement
Income Security Act of 1974 ("ERISA"). Participants should refer
to the Summary Plan Description and Plan Document for specific
information regarding Plan provisions.
5
<PAGE>
MBIA INC.
EMPLOYEES PROFIT SHARING AND 401(K) SALARY DEFERRAL PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
- - ----------------------------------------------
INVESTMENTS
The Plan's assets are invested in the MBIA Inc. Master Trust (the
"Trust") with the assets of the MBIA Inc. Employees Pension Plan.
The Plan's share of investments and income from investment
activities in the Trust is determined based on the Plan's
underlying contribution to the investment classification which
is, in turn, based on the investment fund elections of the
participants.
Investments in the Fidelity funds and the Company's common stock
are valued at their current fair values based on last reported
sales prices on the last business day of the year. Participant
loans are stated at cost plus accrued income, which approximates
fair value.
Gain or loss on sale of investments is based on specifically
identified cost. Interest income from investments is recorded as
earned on the accrual basis. Dividend income is recorded on the
ex-dividend date.
The Plan's income from investment activities includes the net
appreciation (depreciation) in the fair value of its investments
which consists of the realized gains or losses and the unrealized
appreciation (depreciation) on those investments.
CONTRIBUTIONS
Contributions from eligible participants and matching Company
contributions are recorded in the month the related payroll
deductions are made.
PARTICIPANT ACCOUNTS
Each participant has an account which is credited with the
Company's contribution, employees' contribution and the income
(loss) from the investment activities of the participant's
account.
ADMINISTRATIVE EXPENSES
Administrative expenses are paid directly by the Company rather
than out of Plan assets. Employee loan fees are paid out of the
participants' accounts.
3. PLAN TERMINATION
- - --------------------
The Company has not expressed any intent to discontinue its contributions or
terminate the Plan. However, it reserves the right to temporarily suspend
6
<PAGE>
MBIA INC.
EMPLOYEES PROFIT SHARING AND 401(K) SALARY DEFERRAL PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
contributions to or amend or terminate the Plan. Upon termination of the Plan,
the accounts of all participants shall become fully vested, and the net assets
of the Plan shall be distributed among the participants and beneficiaries of
the Plan in proportion to their respective
account balances.
4. INVESTMENTS
- - ---------------
As of December 31, 1993 and 1992, the financial position of the
Master Trust and the Plan's percentage interest in each asset
category were as follows:
<TABLE>
<CAPTION>
As of December 31, 1993 As of December 31, 1992
----------------------------------- -------------------------------------
Total Master Trust Total Master Trust
------------------------ Plan's ------------------------- Plan's
Cost Fair Value % Interest Cost Fair Value % Interest
----------- ----------- ---------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Investments at fair
value as determined
by quoted market price:
Employer Stock Fund $ 8,501,260 $ 8,369,235 100.00% $ 5,472,887 $ 7,125,137 100.00%
Fidelity Puritan Fund 841,702 839,739 36.80 --- --- ---
Fidelity Magellan Fund 1,953,054 2,042,259 43.35 1,170,214 1,095,356 47.80
Fidelity Growth
Company Fund 1,457,841 1,481,496 40.72 828,819 855,781 47.08
Fidelity Growth and
Income Portfolio 13,147,601 14,509,853 44.70 11,680,343 11,331,013 45.66
Fidelity Intermediate
Bond Fund 889,881 912,294 49.33 646,828 651,944 49.16
Fidelity Overseas Fund 486,520 542,306 39.94 --- --- ---
Fidelity Blue Chip
Growth Fund 1,392,048 1,422,212 44.14 986,968 1,052,406 41.47
Managed Income Portfolio 5,834,398 5,834,398 43.56 5,767,747 5,767,747 44.65
----------- ----------- ----------- -----------
34,504,305 35,953,792 56.99 26,553,806 27,879,384 59.39
Investments at estimated
fair value:
Participant loans 812,039 812,039 71.47 380,013 380,013 48.94
----------- ----------- ----------- -----------
Total invested assets
available for benefits
of participating plans $35,316,344 $36,765,831 57.31% $26,933,819 $28,259,397 59.25%
=========== =========== =========== ===========
</TABLE>
For the years ended December 31, 1993 and 1992, net appreciation
(depreciation) in the fair value of investments (determined by
quoted market price) of the Master Trust (including investments
bought and sold, as well as held during the year) was as follows:
Years ended December 31
-----------------------------------------
1993 1992
-------------------- ---------------
Fidelity funds $1,818,599 ($ 262,396)
Employer Stock Fund (123,315) 1,679,971
---------- ----------
$1,695,284 $1,417,575
========== ==========
7
<PAGE>
MBIA INC.
EMPLOYEES PROFIT SHARING AND 401(K) SALARY DEFERRAL PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
For the years ended December 31, 1993 and 1992, investment income
consisting of dividends and interest in the Master Trust were
$1,998,407 and $2,203,788, respectively.
5. NET ASSETS AND CHANGES IN NET ASSETS AVAILABLE FOR PLAN
- - -----------------------------------------------------------
BENEFITS BY FUND
----------------
As of December 31, 1993 and 1992, the net assets available for
Plan benefits of the individual investment funds were as follows:
As of December 31
----------------------------
1993 1992
------------ ------------
Employer Stock Fund $ 8,361,353 $ 7,237,487
Fidelity Puritan Fund 308,983 2,168
Fidelity Magellan Fund 885,340 530,713
Fidelity Growth Company Fund 603,251 415,064
Fidelity Growth and Income Portfolio 6,485,978 5,238,409
Fidelity Intermediate Bond Fund 450,070 324,882
Fidelity Overseas Fund 216,602 185
Fidelity Blue Chip Growth Fund 627,755 445,046
Managed Income Portfolio 2,541,744 2,590,812
Participant Loans 580,363 185,962
----------- -----------
$21,061,439 $16,970,728
=========== ===========
For the years ended December 31, 1993 and 1992, the changes in
net assets available for Plan benefits of the individual
investment funds were as shown on the following page:
8
<PAGE>
MBIA INC.
EMPLOYEES PROFIT SHARING and 401 (K) SALARY DEFERRAL PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
<TABLE>
<CAPTION>
Year ended December 31, 1993
--------------------------------------------------------------------------------------------------------------
Growth Blue
Employer Growth and Intermed Chip Managed
Stock Puritan Magellan Company Income Bond Overseas Growth Income Participant
Fund Fund Fund Fund Fund Fund Fund Fund Portfolio Loans Total
---------- -------- -------- -------- ---------- --------- -------- -------- --------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Contributions:
Employees' salary
deferral $ 80,834 $ 57,019 $138,823 $108,392 $ 870,039 $ 90,306 $ 27,896 $135,473 $ 266,021 $ --- $1,774,803
Employer 1,049,244 --- --- --- --- --- --- --- --- --- 1,049,244
Income from invest-
ment activities (16,966) 39,275 131,823 77,264 1,042,941 45,584 24,415 118,806 141,522 29,796 1,634,460
Benefit
distributions (147,922) --- (8,772) (22,006) (84,974) --- (8,286) (15,078) (80,758) --- (367,796)
Transfers (to) from
other funds 158,676 210,521 92,753 24,537 (580,437) (10,702) 172,392 (56,492) (375,853) 364,605 ---
---------- -------- -------- -------- ---------- -------- -------- -------- --------- -------- ----------
Net increase
(decrease) in net
assets available
for Plan benefits $1,123,866 $306,815 $354,627 $188,187 $1,247,569 $125,188 $216,417 $182,709 $ (49,068) $394,401 $4,090,711
========== ======== ======== ======== ========== ======== ======== ======== ========= ======== ==========
</TABLE>
<TABLE>
<CAPTION>
Year ended December 31, 1992
--------------------------------------------------------------------------------------------------------------
Growth Blue
Employer Growth and Intermed Chip Managed
Stock Puritan Magellan Company Income Bond Overseas Growth Income Participant
Fund Fund Fund Fund Fund Fund Fund Fund Portfolio Loans Total
----------- --------- -------- -------- ---------- -------- -------- --------- --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Contributions:
Employees' salary
deferral $ 13,665 $ 2,168 $ 65,101 $ 50,386 $ 924,996 $ 33,258 $ 185 $ 69,364 $ 330,452 $ --- $1,489,575
Employer 723,970 --- --- --- --- --- --- --- --- --- 723,970
Income from invest-
ment activities 1,739,560 --- 32,159 30,919 546,877 22,806 --- 40,458 169,393 12,272 2,594,444
Benefit
distributions (154,812) --- (11,684) (3,371) (105,434) (5,057) --- (75) (66,510) --- (346,943)
Transfers (to) from
other funds 113,631 --- 445,137 337,130 (929,090) 273,875 --- 335,299 (694,126) 118,144 ---
---------- -------- -------- -------- -------- -------- ------- -------- --------- -------- ----------
Net increase
(decrease) in net
assets available
for Plan benefits $2,436,014 $ 2,168 $530,713 $415,064 $437,349 $324,882 $ 185 $445,046 $(260,791) $130,416 $4,461,046
========== ======== ======== ======== ======== ======== ======= ======== ========= ======== ==========
</TABLE>
9
<PAGE>
MBIA INC.
EMPLOYEES PROFIT SHARING AND 401(K) SALARY DEFERRAL PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
6. TAX STATUS
- - --------------
The Internal Revenue Service has advised that the Plan
constitutes a qualified plan under Section 401 (a) of the
Internal Revenue Code and is therefore exempt from federal income
taxes under provisions of Section 501 (a).
10
<PAGE>
SIGNATURES
------------
Pursuant to the requirements of the Securities Exchange Act of
1934, the trustees (or other persons who administer the employee
benefit plan) have duly caused this annual report to be signed on
its behalf by the undersigned thereunto duly authorized.
MBIA INC.
EMPLOYEES PROFIT SHARING AND
401(K) SALARY DEFERRAL PLAN
Hilda H. Boas
Date: June 24, 1994 ------------------------------------
Hilda H. Boas
Senior Vice President
Plan Administrator
Louis G. Lenzi
Date: June 24, 1994 ------------------------------------
Louis G. Lenzi
General Counsel
11
