UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(X) ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 for the fiscal year ended December 31, 1999 or
( ) TRANSITION 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>
MBIA INC.
EMPLOYEES PROFIT SHARING AND
401(K) SALARY DEFERRAL PLAN
FINANCIAL STATEMENTS
FOR THE YEARS ENDED
DECEMBER 31, 1999 AND 1998
<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, 1999 and 1998 3
Statements of Changes in Net Assets Available
for Plan Benefits for the years ended
December 31, 1999 and 1998 4
Notes to Financial Statements 5-11
Supplemental Schedule 27A 12
Signatures 13
Schedules other than those listed above have been omitted since they are either
not required or not applicable.
1
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE PARTICIPANTS AND ADMINISTRATOR OF
MBIA INC. EMPLOYEES PROFIT SHARING AND 401(K) SALARY DEFERRAL PLAN:
In our opinion, the accompanying statements of net assets available for
plan benefits and the related statements of changes in net assets available for
plan benefits present fairly, in all material respects, the net assets available
for benefits of MBIA Inc. Employees Profit Sharing and 401 (K) Salary Deferral
Plan (the "Plan") at December 31, 1999 and December 31, 1998, and the changes in
net assets available for benefits for the years then ended in conformity with
accounting principles generally accepted in the United States of America. These
financial statements are the responsibility of the Plan's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these statements in accordance with
auditing standards generally accepted in the United States of America, 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 audits provide a
reasonable basis for the opinion expressed above.
Our audits were conducted for the purpose of forming an opinion on the
basic financial statements taken as a whole. The supplemental schedule of assets
held for investment purposes is presented for the purpose of additional analysis
and is not a required part of the basic financial statements but is
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. This supplemental schedule is the responsibility of the
Plan's management. The supplemental schedule has been subjected to the auditing
procedures applied in the audits of the basic financial statements and, in our
opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
The schedule of assets held for investment purposes that accompanies the
Plan's financial statements does not disclose the historical cost of certain
Plan assets held by the Plan trustee. Disclosure of this information is required
by the Department of Labor's Rules and Regulations for Reporting and Disclosure
under the Employee Retirement Income Security Act of 1974.
/s/ PRICEWATERHOUSECOOPERS
--------------------------
New York, New York
June 16, 2000
2
<PAGE>
MBIA INC.
EMPLOYEES PROFIT SHARING AND 401(K) SALARY DEFERRAL PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
December 31, December 31,
1999 1998
------------ ------------
Assets:
Investments, at fair value
(cost $90,120,473 and
$64,631,291, respectively) $88,772,586 $68,954,922
Participant loans 1,364,852 1,447,835
Employer contribution receivable 26,548 ---
----------- -----------
Total assets 90,163,986 70,402,757
Liabilities:
Other liabilities --- 52,032
----------- -----------
Net assets available for
plan benefits $90,163,986 $70,350,725
=========== ===========
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
----------------------------
1999 1998
---------- ----------
Contributions:
Employees' salary deferral $ 6,842,683 $ 3,659,572
Employer 2,281,788 1,944,844
Transfer from 1838 Salary Savings Plan 3,009,973 ---
Transfer from CapMAC ESOP Plan 13,976,301 ---
Transfer from CapMAC 401(K) Plan --- 8,566,478
Interest and dividends 3,517,721 2,558,488
Net appreciation in fair
value of investments (1,350,100) 4,811,394
Benefit distributions (8,465,105) (3,482,156)
----------- -----------
Net increase 19,813,261 18,058,660
Net assets available for plan
benefits, beginning of year 70,350,725 52,292,065
----------- -----------
Net assets available for
plan benefits, end of year $90,163,986 $70,350,725
=========== ===========
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 MBIA Inc. and
Subsidiaries (the "Company") who have completed six months of service, are at
least 21 years of age, and work a minimum of 21 hours per week. 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, in the form of MBIA Inc. common stock, at
the rate of 100% of the participant's contribution up to a maximum of 5% of the
participant's eligible compensation. Participants may request loans from their
accounts in accordance with established guidelines. Loan balances outstanding
are reflected as assets of the Plan. Interest income on the loans is recorded as
earned.
The Plan's assets are managed by Fidelity Management Trust Company ("Fidelity"),
the investment advisor, trustee and custodian. The participants of the Plan have
the option to direct the investment of their contribution share into one or more
of ten Fidelity funds, one Baron Asset Management Company, Inc. ("Baron") fund,
one or more of four 1838 Investment Advisors, Inc. ("1838") funds and the
Employer Stock Fund. 1838 is a wholly-owned subsidiary of MBIA Inc.
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. In 1999 and 1998,
employer contributions were reduced by $23,220 and $76,765, respectively, from
forfeited nonvested accounts.
A participant is entitled to 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,
disability, 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)
On February 17, 1998, MBIA Inc. and CapMAC Holdings Inc. ("CapMAC") consummated
a merger. Effective the date of the merger, the account balances in the CapMAC
401(K) Plan were transferred to the MBIA Inc. Employees Profit Sharing and
401(K) Salary Deferral Plan. Under MBIA Inc.'s vesting requirements, these
employees have received credit for their years of service with CapMAC.
On July 31, 1998, MBIA Inc. completed a merger of its investment management
business with 1838. Effective January 1, 1999, the account balances in the 1838
Salary Savings Plan were transferred to the MBIA Inc. Employees Profit Sharing
and 401(K) Salary Deferral Plan. Under MBIA Inc.'s vesting requirements, these
employees have received credit for their years of service with 1838.
In July 1999, the CapMAC Employee Stock Ownership Plan ("ESOP") was merged with
the Plan. Prior to the merger of the plans, 213,175 ESOP shares were allocated
to the CapMAC participants. In conjunction with the merger of the plans, there
were 147,364 unallocated ESOP shares remaining that are used to fund the
Company's match obligations.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
----------------------------------------------
The financial statements have been prepared on the basis of generally accepted
accounting principles (GAAP). The preparation of financial statements in
conformity with GAAP 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.
Actual results could differ from those estimates.
The Plan provides for various investment options in any combination of stocks,
bonds, fixed income securities, mutual funds, and other investment securities.
Investment securities are exposed to various risks, such as interest rate,
market, and credit risks. Due to the level of risk associated with certain
investment securities, it is at least reasonably possible that changes in the
values of investment securities will occur in the near term and that such
changes could materially affect participants' account balances and the amounts
reported in the Statements of Net Assets Available for Plan Benefits.
6
<PAGE>
MBIA INC.
EMPLOYEES PROFIT SHARING AND 401(K) SALARY DEFERRAL PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
Significant accounting policies are as follows:
BASIS OF ACCOUNTING
The financial statements of the Plan are prepared under the accrual method of
accounting.
INVESTMENTS
The Plan's investments 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.
Income from investment activities 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.
Gain or loss on the 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 net appreciation (depreciation) in the fair value of its
investments 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.
PAYMENT OF BENEFITS
Benefits are recorded when paid.
ADMINISTRATIVE EXPENSES
Administrative expenses, which consist primarily of investment management,
record keeping and auditing fees, are paid directly by the Company rather than
out of Plan assets. Employee loan fees are paid out of the participants'
accounts.
7
<PAGE>
MBIA INC.
EMPLOYEES PROFIT SHARING AND 401(K) SALARY DEFERRAL PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
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
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
---------------
Prior to 1999, the Plan's assets were invested in the MBIA Inc. Master Trust
(the "Master Trust") together with the assets of the MBIA Inc. Employees Pension
Plan. During 1999, the Master Trust was dissolved and the Plan's assets were
transferred into a separate trust.
As of December 31, 1999, the financial position of the Plan on a cash basis
(excluding the ending accrual for employer contributions) in each asset category
were as follows:
December 31, 1999
---------------------------------
Cost Fair Value
-------------- ------------
Employer Stock Fund* $ 24,706,235 $ 20,216,619
ESOP Fund 13,483,220 10,998,903
Fidelity Puritan Fund 1,003,815 955,317
Fidelity Magellan Fund* 4,471,245 4,931,065
Fidelity Growth Company Fund* 4,066,838 6,133,866
Fidelity Growth and Income Portfolio* 15,743,017 16,184,712
Fidelity Intermediate Bond Fund 3,512,395 3,347,159
Fidelity Value Fund 774,108 714,131
Fidelity Overseas Fund 1,879,288 2,343,806
Fidelity Blue Chip Growth Fund* 6,526,273 7,714,054
Fidelity Spartan U.S. Equity Index Fund* 4,527,256 5,283,267
Fidelity Managed Income Fund 4,418,889 4,418,889
Baron Asset Fund 6,135 6,499
1838 International Equity Fund 1,168,617 1,363,871
1838 Small Cap Equity Fund 606,950 604,858
1838 Large Cap Equity Fund 3,121,252 3,451,955
1838 Fixed Income Fund 104,940 103,615
-------------- ------------
$ 90,120,473 $ 88,772,586
============== ============
Participant Loans 1,364,852 1,364,852
* Each of these investments, at fair value, represents 5% or more of the
Plan's net assets at December 31, 1999.
8
<PAGE>
As of December 31, 1998, the financial position of the Master Trust on a cash
basis (excluding the ending accrual for employer contributions) in each asset
category was as follows:
December 31, 1998
-------------------------------------
Total Master Trust
--------------------------- Plan's
Fair %
Cost Value Interest
------------ ------------ --------
Investments at fair value as
determined by quoted market price:
Employer Stock Fund $ 25,197,919 $ 24,705,494 100.00%
Fidelity Puritan Fund 2,087,034 2,153,130 43.58
Fidelity Magellan Fund 5,587,461 6,835,328 46.64
Fidelity Growth Company Fund 5,563,113 6,292,964 50.87
Fidelity Growth and
Income Portfolio 33,714,612 39,913,846 42.99
Fidelity Intermediate Bond Fund 7,054,960 7,022,758 51.22
Fidelity Value Fund 1,029,183 884,941 62.25
Fidelity Overseas Fund 2,579,615 2,726,259 47.81
Fidelity Blue Chip Growth Fund 8,350,449 9,953,345 61.49
Fidelity Spartan U. S. Equity
Index Fund 3,817,399 4,266,375 89.68
Managed Income Portfolio 8,779,948 8,779,948 49.71
------------ ------------- 60.73
103,761,693 113,534,388
Participant loans 1,671,672 1,671,672 86.61
------------- -------------
Total invested assets
available for benefits of
participating plans $105,433,365 $115,206,060 61.11%
============ ============
The Plan's interest in the Master Trust as of December 31, 1998 is presented in
the Statement of Net Assets Available for Plan Benefits.
For the year ended December 31, 1998 net appreciation 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 $10,777,182.
Investment income consisting of dividends and interest in the Master Trust for
the year ended December 31, 1998, was $4,995,117.
5. CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY FUND
------------------------------------------------------------
For the years ended December 31, 1999 and 1998, the changes in net assets
available for Plan benefits of the individual investment funds were as shown on
the following page:
9
<PAGE>
MBIA INC.
EMPLOYEES PROFIT SHARING and 401 (K) SALARY DEFERRAL PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
<TABLE>
<CAPTION>
Year ended December 31, 1999
--------------------------------------------------------------------------
Employer Growth Growth
Stock ESOP Puritan Magellan Company and Income
Fund Fund Fund Fund Fund Fund
----------- ----------- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees' salary deferral $ 596,150 $ --- $139,770 $ 386,888 $ 378,534 $ 908,645
Employer 1,767,579 514,209 --- --- --- ---
Transfer from
1838 Salary Savings Plan --- --- --- --- --- ---
Transfer from
CapMAC ESOP Plan --- 13,976,301 --- --- --- ---
Interest and dividends 301,789 43,502 79,096 350,757 417,133 1,121,848
Net appreciation
(depreciation) in fair
value of investments (4,710,583) (2,742,529) (48,246) 492,093 2,174,216 539,136
Benefit distributions (2,408,987) (792,287) (175,217) (476,361) (536,272) (2,104,668)
Transfers from (to) other
funds 43,757 (293) 21,670 989,460 498,855 (1,439,398)
----------- ----------- ----------- ---------- ---------- ----------
Net increase (decrease) in
net assets available
for Plan benefits $(4,410,295) $10,998,903 $ 17,073 $1,742,837 $2,932,466 $(974,437)
=========== =========== =========== ========== ========== ==========
<PAGE>
<CAPTION>
Year ended December 31, 1999
--------------------------------------------------------------------------
Blue Chip Spartan Managed
Intermediate Value Overseas Growth U.S. Equity Income
Bond Fund Fund Fund Fund Index Fund Portfolio
------------ ----------- ----------- ---------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees' salary deferral $ 107,693 $185,415 $ 541,675 $ 556,711 $1,003,227 $ 283,325
Employer --- --- --- --- --- ---
Transfer from
1838 Salary Savings Plan --- --- --- --- --- 6,734
Transfer from
CapMAC ESOP Plan --- --- --- --- --- ---
Interest and dividends 209,839 85,258 138,931 272,013 86,020 222,263
Net appreciation
(depreciation) in fair
value of investments (177,293) (42,233) 518,654 1,236,488 828,727 ---
Benefit distributions (156,240) (77,928) (220,028) (508,768) (433,038) (457,972)
Transfers from (to) other
funds (234,167) 12,758 61,080 37,598 (27,853) (37)
------------ ----------- ----------- ---------- ----------- ---------
Net increase (decrease) in
net assets available
for Plan benefits $(250,168) $163,270 $1,040,312 $1,594,042 $1,457,083 $ 54,313
============ =========== =========== ========== =========== =========
<PAGE>
<CAPTION>
Year ended December 31, 1999
------------------------------------------------------------------------------------
1838 1838 1838 1838
Baron International Small Cap Large Cap Fixed Participant
Asset Equity Equity Equity Income Loans TOTAL
---------- ------------- --------- ---------- -------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Contributions:
Employees' salary deferral $ 925 $ 565,035 $166,567 $ 977,368 $ 44,485 $ --- $ 6,842,683
Employer --- --- --- --- --- --- 2,281,788
Transfer from
1838 Salary Savings Plan --- 551,235 530,660 1,848,281 38,369 34,694 3,009,973
Transfer from
CapMAC ESOP Plan --- --- --- --- --- --- 13,976,301
Interest and dividends --- 59,920 270 11,522 1,548 116,012 3,517,721
Net appreciation
(depreciation) i
value of investments 364 197,237 (15,853) 401,047 (1,325) --- (1,350,100)
Benefit distributions --- (36,185) (3,427) --- --- (77,727) (8,465,105)
Transfers from (to) other
funds 5,210 26,629 (73,359) 213,467 20,539 (155,916) ---
---------- ------------- --------- ---------- -------- ----------- -----------
Net increase (decrease) in
net assets available
for Plan benefits $6,499 $1,363,871 $604,858 $3,451,955 $103,616 $(82,937) $19,813,261
========== ============= ========= ========== ======== =========== ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Year ended December 31, 1998
--------------------------------------------------------------------------
Employer Growth Growth
Stock ESOP Puritan Magellan Company and Income
Fund Fund Fund Fund Fund Fund
----------- ----------- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees' salary deferral $247,051 $--- $155,725 $ 335,729 $ 371,863 $ 938,935
Employer 1,944,884 --- --- --- --- ---
Transfer from
CapMAC 401(K) Plan --- --- --- 176,439 892,440 127,944
Interest and dividends 285,387 --- 98,509 144,263 216,081 997,640
Net appreciation
(depreciation) in fair
value of investments (460,884) --- 37,454 608,897 394,417 2,892,173
Benefit distributions (1,277,753) --- (324,306) (126,975) (204,823) (795,435)
Transfers from (to) other
funds (11,176) --- 172,169 (89,870) (560,989) (1,937,312)
----------- ----------- ----------- ---------- ---------- -----------
Net increase (decrease) in
net assets available
for Plan benefits $727,509 $--- $139,551 $1,048,483 $1,108,989 $2,223,945
=========== =========== =========== ========== ========== ===========
<PAGE>
<CAPTION>
Year ended December 31, 1998
---------------------------------------------------------------------------
Blue Chip Spartan Managed
Intermediate Value Overseas Growth U.S. Equity Income
Bond Fund Fund Fund Fund Index Fund Portfolio
------------ ----------- ----------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Employees' salary deferral $ 110,285 $155,519 $178,512 $ 479,390 $ 391,685 $ 294,878
Employer --- --- --- --- --- ---
Transfer from
CapMAC 401(K) Plan 641,050 251,480 295,422 2,389,173 2,818,636 889,770
Interest and dividends 104,682 69,912 23,549 253,057 37,132 207,016
Net appreciation
(depreciation) in fair
value of investments (6,652) (98,593) 69,930 987,683 386,969 ---
Benefit distributions (31,522) (25,330) (35,928) (186,969) (77,953) (354,924)
Transfers from (to) other
funds 2,113,975 (104,170) (179,078) (225,900) 123,992 568,031
------------ ----------- ----------- ---------- ----------- ----------
Net increase (decrease) in
net assets available
for Plan benefits $2,931,818 $248,818 $352,407 $3,696,434 $3,680,461 $1,604,771
============ =========== =========== ========== =========== ==========
<PAGE>
<CAPTION>
Year ended December 31, 1998
------------------------------------------------------------------------------------
1838 1838 1838 1838
Baron International Small Cap Large Cap Fixed Participant
Asset Equity Equity Equity Income Loans TOTAL
---------- ------------- --------- --------- ------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Contributions:
Employees' salary deferral $--- $--- $--- $--- $--- $ --- $ 3,659,572
Employer --- --- --- --- --- --- 1,944,884
Transfer from
CapMAC 401(K) Plan --- --- --- --- --- 84,124 8,566,478
Interest and dividends --- --- --- --- --- 121,260 2,558,488
Net appreciation
(depreciation) in fair
value of investments --- --- --- --- --- --- 4,811,394
Benefit distributions --- --- --- --- --- (40,238) 3,482,156
Transfers from (to) other
funds --- --- --- --- --- 130,328 ---
---------- ------------- --------- --------- ------- ----------- -----------
Net increase (decrease) in
net assets available
for Plan benefits $--- $--- $--- $--- $--- $295,474 $18,058,660
========== ============= ========= ========= ======= =========== ===========
</TABLE>
10
<PAGE>
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).
The Plan obtained its latest determination letter on July 12, 1995 in which the
Internal Revenue Service stated that the Plan, as then designed, was in
compliance with the applicable requirements of the Internal Revenue Code. The
Plan has been amended since receiving the determination letter. However, the
Plan administrator and the Plan's tax counsel believe that the Plan is currently
designed and being operated in compliance with the applicable requirements of
the Internal Revenue Code. Therefore, they believe that the Plan was qualified
and the related Trust was tax-exempt as of the financial statement date.
11
<PAGE>
MBIA INC.
EMPLOYEES PROFIT SHARING AND 401(K) SALARY DEFERRAL PLAN
SUPPLEMENTAL SCHEDULE
LINE 27A - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES (1)
at December 31, 1999
Description Cost (2) Current Value
------------ --------- -------------
Employer Stock Fund $ 20,216,619
ESOP Fund 10,998,903
Fidelity Puritan Fund* 955,317
Fidelity Magellan Fund* 4,931,065
Fidelity Growth Company Fund* 6,133,866
Fidelity Growth and Income Portfolio* 16,184,712
Fidelity Intermediate Bond Fund* 3,347,159
Fidelity Value Fund* 714,131
Fidelity Overseas Fund* 2,343,806
Fidelity Blue Chip Growth Fund* 7,714,054
Fidelity Spartan U.S. Equity Index Fund* 5,283,267
Fidelity Managed Income Fund* 4,418,889
Baron Asset Fund* 6,499
1838 International Equity Fund* 1,363,871
1838 Small Cap Equity Fund* 604,858
1838 Large Cap Equity Fund* 3,451,955
1838 Fixed Income Fund* 103,615
------------
$ 88,772,586
Participant Loans
-----------------
Loans, at cost 1,364,852 1,364,852
------------
Total $ 90,137,438
============
(1) This schedule has been certified as complete and accurate by the Plan
trustee.
(2) The trustee has informed the Plan's management that it is not possible for
the trustee to provide historical cost for the funds.
* Fidelity Management Trust Company, 1838 Investment Advisors, Inc., and Baron
Asset Management Company, Inc., are parties in interest.
See Notes to Financial Statements and Report of Independent Accountants.
12
<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
Date: June 27, 2000 /s/ KEVIN D. SILVA
---------------- ---------------------------
Kevin D. Silva
Executive Vice President & CAO
Plan Administrator
Date: June 27, 2000 /s/ RAM WERTHEIM
---------------- ------------------------
Ram Wertheim
General Counsel
13
