<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended September 30, 1996 Commission File Number 33-85988
---------------------- -----------
C.M. LIFE INSURANCE COMPANY
--------------------------------------------------------
(Exact name of registrant as specified in its charter)
Connecticut 06-1041383
----------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
140 Garden Street, Hartford, Connecticut 06154
----------------------------------------------
(Address of principal executive offices)
(Zip Code)
(860) 987-6500
--------------
(Registrant's telephone number, including area code)
None
------
(Former name, former address and former
fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
(1) Yes X No __
-----
(2) Yes X No __
-----
Registrant has 12,500 shares of common stock outstanding on September 30, 1996,
all of which are owned by Massachusetts Mutual Life Insurance Company.
THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION (1) (A) AND
(B) OF FORM 10Q AND IS THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE
FORMAT.
<PAGE>
C.M. LIFE INSURANCE COMPANY
INDEX
<TABLE>
PART I: Financial Information
---------------------
<S> <C> <C>
Item 1: Financial Statements:
Statement of Financial Position -
September 30, 1996 and December 31, 1995 .............. 3
Statement of Operations -
Three Months Ended
September 30, 1996 and 1995 .......................... 4
Statement of Operations -
Nine Months Ended
September 30, 1996 and 1995 .......................... 5
Statement of Stockholder's Equity -
Nine Months Ended
September 30, 1996 and 1995 .......................... 6
Statement of Cash Flows -
Nine Months Ended
September 30, 1996 and 1995 .......................... 7
Notes to Financial Statements .......................... 8
Item 2: Management's Discussion and Analysis of
Financial Condition and Results of
Operations ............................................. 10
PART II: Other Information
-----------------
Item 1: Not applicable.
Item 2: Not applicable.
Item 3: Not applicable.
Item 4: Not applicable.
Item 5: Not applicable.
Item 6: Exhibits and Reports on Form 8-K ....................... 13
</TABLE>
2
<PAGE>
C.M. LIFE INSURANCE COMPANY
STATEMENT OF FINANCIAL POSITION
($ IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
--------------- ---------------
ASSETS:
<S> <C> <C>
Investments:
Fixed maturities at cost $ 742,924 $ 736,099
Equity securities at cost 54,727 72,572
Mortgage loans on real estate at net 32,068 26,705
realizable value
Policy loans at outstanding balance 129,529 126,014
Cash and cash equivalents 100,078 15,069
--------------- ---------------
Total Investments 1,059,326 976,459
--------------- ---------------
Investment and insurance amounts 25,043 22,515
receivable
Other assets 995 3,069
Assets of Separate Account 692,900 531,432
--------------- ---------------
TOTAL ASSETS $1,778,264 $1,533,475
=============== ===============
LIABILITIES AND STOCKHOLDER'S EQUITY:
Liabilities:
Policyholders' reserves and funds $ 892,336 $ 867,672
Policy claims and benefits currently 2,316 2,086
payable
Federal income tax payable (1,793) 2,821
Asset valuation reserve 19,849 15,869
Remittances and items not allocated 35,207 3,861
Transfers due from Separate Account (23,832) (22,301)
Liabilities of Separate Account 692,900 531,432
Other liabilities 43,905 18,836
--------------- ---------------
Total Liabilities 1,660,888 1,420,276
--------------- ---------------
STOCKHOLDER'S EQUITY:
Common stock, $200 par value -
50,000 shares authorized,
12,500 shares issued and 2,500 2,500
outstanding
Additional paid-in capital 43,759 43,759
Retained earnings 71,117 66,940
--------------- ---------------
Total Stockholder's Equity 117,376 113,199
--------------- ---------------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $1,778,264 $1,533,475
=============== ===============
</TABLE>
The accompanying notes are an integral part of these unaudited financial
statements.
3
<PAGE>
C.M. LIFE INSURANCE COMPANY
STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
($ IN THOUSANDS)
<TABLE>
<CAPTION>
1996 1995
--------------------
REVENUES:
<S> <C> <C>
Premiums and annuity considerations $ 76,622 66,294
Net investment income and other 17,498 17,075
income
-------- --------
Total revenues 94,120 83,369
BENEFITS AND EXPENSES:
Policy payments and benefits 27,131 13,614
Additions to policyholders' reserves 53,802 52,820
and funds
Operating expenses 12,608 10,099
Commissions 8,014 3,129
State taxes, licenses and fees 399 1,333
Total benefits and expenses 101,954 80,995
-------- --------
Net gain (loss) before federal (7,834) 2,374
income taxes
FEDERAL INCOME TAX EXPENSE (BENEFIT) (1,984) 451
Net gain from operations (5,850) 1,923
NET REALIZED CAPITAL LOSS (1,424) (506)
--------- ---------
NET INCOME (LOSS) $ (7,274) $ 1,417
========= =========
</TABLE>
The accompanying notes are an integral part of these unaudited financial
statements.
Prior year amounts have been reclassed to conform with 1996 presentation.
4
<PAGE>
C.M. LIFE INSURANCE COMPANY
STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
($ IN THOUSANDS)
<TABLE>
<CAPTION>
1996 1995
--------- ---------
<S> <C> <C>
REVENUES:
Premiums and annuity considerations $238,305 $196,452
Net investment income and other 54,686 51,293
income
--------- ---------
Total revenues 292,991 247,745
BENEFITS AND EXPENSES:
Policy payments and benefits 72,720 42,271
Additions to policyholders' reserves 166,891 155,527
and funds
Operating expenses 24,898 23,603
Commissions 16,617 8,979
State taxes, licenses and fees 2,496 3,848
Total benefits and expenses 283,622 234,228
--------- ---------
Net gain before federal income 9,369 13,517
taxes
FEDERAL INCOME TAX EXPENSE 5,561 4,274
Net gain from operations 3,808 9,243
NET REALIZED CAPITAL GAIN (LOSS) 846 (708)
--------- ---------
NET INCOME $ 4,654 $ 8,535
========= =========
</TABLE>
The accompanying notes are an integral part of these unaudited financial
statements.
Prior year amounts have been reclassed to conform with 1996 presentation.
5
<PAGE>
C.M. LIFE INSURANCE COMPANY
STATEMENT OF STOCKHOLDER'S EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
($ IN THOUSANDS)
<TABLE>
<CAPTION>
1996 1995
---------- ----------
<S> <C> <C>
STOCKHOLDER'S EQUITY, beginning of year $113,199 $103,837
Increases (decreases) due to:
Net gain from operations 4,654 8,535
Net unrealized capital gain 1,038 6,124
Change in asset valuation reserve (3,981) (9,371)
Change in nonadmitted assets (533) (981)
Change in general investment reserve 2,999 -
---------- ----------
Net increase 4,177 4,307
---------- ----------
STOCKHOLDER'S EQUITY, end of period $117,376 $108,144
========== ==========
</TABLE>
The accompanying notes are an integral part of these unaudited financial
statements.
Prior year amounts have been reclassed to conform with 1996 presentation.
6
<PAGE>
C.M. LIFE INSURANCE COMPANY
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
($ IN THOUSANDS)
<TABLE>
<CAPTION>
1996 1995
------------ ------------
<S> <C> <C>
Cash Provided:
Premiums and annuity considerations,
net of reinsurance $ 231,703 $ 182,039
Net investment and other income 47,971 59,929
---------- ----------
279,674 241,968
Benefits and interest to policyholders
and beneficiaries, net of reinsurance (184,946) (126,481)
Operating expenses, commissions,
other expenses and taxes paid (14,126) (44,711)
Other payments, net (3,515) (10,836)
---------- ----------
Net cash provided by operations 77,087 59,940
---------- ----------
Proceeds from the disposition of fixed
maturities, equity securities and
mortgage
loans on real estate 114,315 358,417
Other cash provided 860
------------ ------------
Total cash provided 192,262 418,357
------------ ------------
CASH APPLIED:
Purchases of fixed maturities, equity
securities
and mortgage loans on real estate 111,007 419,074
Other applications (3,754) 843
Total cash applied 107,253 419,917
------------ ------------
Net increase in cash and cash
equivalents 85,009 (1,560)
CASH AND CASH EQUIVALENTS:
Beginning of year 15,069 3,026
------------ ------------
End of period $ 100,078 $ 1,466
============ ============
</TABLE>
The accompanying notes are an integral part of these unaudited financial
statements.
Prior year amounts have been reclassed to conform with 1996 presentation.
7
<PAGE>
C.M. LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996 AND 1995
(AMOUNTS IN THOUSANDS)
(UNAUDITED)
1. General:
-------
C.M. Life Insurance Company (C.M. Life) is a wholly owned stock life
insurance subsidiary of Massachusetts Mutual Life Insurance Company
(MassMutual).
Effective February 29, 1996 Connecticut Mutual Life Insurance Company
(Connecticut Mutual) merged with MassMutual. Connecticut Mutual was the
former parent of C.M. Life.
The enclosed financial statements have been prepared in accordance with
Statutory Accounting Principles. In the opinion of C.M. Life these
financial statements contain all adjustments, consisting of only normal
recurring adjustments, necessary to present fairly the financial position
as of September 30, 1996 and December 31, 1995, the results of its
operations for the three month and nine month periods ended September 30,
1996 and 1995, stockholder's equity and its cash flows for the nine months
ended September 30, 1996 and 1995.
C.M. Life's financial statements have been prepared in conformity with
accounting practices and procedures of the National Association of
Insurance Commissioners (NAIC) as prescribed or permitted by the Insurance
Department of the State of Connecticut.
The Financial Accounting Standards Board (FASB), which has no role in
establishing regulatory practices, issued Interpretation 40, Applicability
of Generally Accepted Accounting Principles to Mutual Life Insurance and
Other Enterprises, and Statement of Financial Accounting Standards No. 120,
Accounting and Reporting by Mutual Life Insurance Enterprises for Certain
Long-Duration Participating Contracts. The American Institute of Certified
Public Accountants, which also has no role in establishing regulatory
accounting practices, issued Statement of Position 95-1, Accounting for
Certain Insurance Activities of Mutual Life Insurance Enterprises. These
pronouncements will require mutual life insurance companies and their
wholly owned stock life insurance subsidiaries to modify their financial
statements in order to continue to be in accordance with generally accepted
accounting principles, effective for financial statements issued for 1996
and prior periods presented. The manner in which policy reserves, new
business acquisition costs, asset valuations and related tax effects are
recorded will change. Management has not determined the impact of such
changes on C.M. Life's Statement of Operations, but believes implementation
of these pronouncements will cause Stockholders' Equity to increase. C.M.
Life is in the process of reviewing if it will adopt the above
pronouncements.
2. Related Party Transactions:
--------------------------
The parent, MassMutual, allocates certain expenses to C.M. Life for
providing operating facilities, human resources, computer software
development and managerial services. Total expenses allocated to C.M. Life
were approximately $12,615 and $25,187 for the three and nine month periods
ended September 30, 1996 and $10,301 and $24,827 for the same periods in
1995.
Effective March 1, 1996, C.M. Life modified its variable annuity selling
agreement with G.R. Phelps (an affiliated broker-dealer) such that variable
annuity commissions will be paid by C.M. Life and all related expense and
surrender fees received from variable annuity contract holders will be
retained by C.M. Life.
8
<PAGE>
3. Net Investment and Other Income:
-------------------------------
Net investment and other income is comprised of the following:
<TABLE>
<CAPTION>
Three Months Nine Months Ended
Ended
September 30, September 30,
--------------------------------------
1996 1995 1996 1995
--------- --------- --------- --------
<S> <C> <C> <C> <C>
Fixed Maturities $13,420 $13,319 $41,783 $40,368
Mortgage loans on real estate 334 646 3,204 2,158
Policy loans 2,523 2,548 7,513 7,304
Amortization of IMR (45) 37 (83) (48)
Other 1,176 489 2,514 1,394
--------- --------- --------- --------
Total Investment Income 17,408 17,039 54,931 51,176
Less: Applicable investment expense 224 384 461 1,049
--------- --------- --------- --------
Net Investment Income 17,184 16,655 54,470 50,127
Other Income 314 420 216 1,166
Net Investment and Other Income $17,498 $17,075 $54,686 $51,293
========= ========= ========= ========
</TABLE>
9
<PAGE>
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Results of Operations (dollar amounts in thousands)
---------------------------------------------------
Three Months Ended September 30, 1996 Compared with 1995
--------------------------------------------------------
For the three months ended September 30, 1996, C.M. Life had a net loss of
($7,274) as compared to net income of $1,417 for the same period in 1995.
The decrease in net income of $8,691 was attributable to increased premium
and annuity considerations of $10,328, an increase in net investment and
other income of $423 and a decrease in federal income taxes of $2,435;
offset by an increase in policy benefits of $14,499, increased operating
expenses and taxes, licenses and fees of $1,575, increased commission
expenses of $4,885, and an increase in net realized capital losses of $918.
Premiums and annuity considerations for the three months ended September
30, 1996 increased $10,328 to $76,622 in 1996 from $66,294 in 1995;
primarily due to increased sales of the Universal Life Enterprise Plus and
variable annuity products partially offset by lower sales of single premium
deferred annuity products.
Premiums ceded decreased $410 to $11,695 from $12,105 in 1995, the decrease
is primarily due to lower direct premiums for the reinsured block of
business.
Net investment and other income increased $423 from 1995; this increase was
primarily attributable to increased invested assets, primarily fixed
maturities and other invested assets, in addition to lower investment
expenses.
Expenses related to policy benefits and payments, insurance operations,
acquisition and state taxes and fees increased $20,959 to $101,954 in 1996
from $80,995 in 1995. This increase is partially attributed to increases in
acquisition costs. Surrender benefits increased $5,141 from $10,298 in 1995
to $15,439 in 1996 while death claims, annuity and disability benefits
increased $7,107 from $4,147 in 1995 to $11,254 in 1996. Reserves ceded
increased $1,204 to $3,115 in 1996 from $1,911 in 1995. Commissions
increased $4,885 primarily as a result of the revised variable annuity
selling agreement with G.R. Phelps, discussed above.
Reinsurance benefits and expenses ceded decreased $1,169 to $9,655 in
1996 from $10,824 in 1995.
Federal income tax expense decreased by $2,435 from 1995. Taxable income
decreased $7,876 from taxable income of $2,206 in 1995 to a loss of
($5,670) in 1996. The change in taxable income is primarily attributable to
the $10,209 decrease in net gain from operations offset by book tax
differences of $2,333.
Nine Months Ended September 30, 1996 Compared with 1995
-------------------------------------------------------
For the nine months ended September 30, 1996, C.M. Life had net income of
$4,654 as compared with net income of $8,535 for the same period in 1995.
The decrease in net income of $3,881 was attributable to increased premium
and annuity considerations of $41,853, an increase in net investment and
other income of $3,393, and an increase in net realized capital gains of
$1,554 to a gain of $846 in 1996 from a loss of $708 in 1995; partially
offset by increased policy benefits and commission expenses of $49,451 and
increased federal income taxes of $1,287.
10
<PAGE>
Premiums and annuity considerations increased $41,853 to $238,305 in 1996
from $196,452 in 1995; primarily due to increased sales of the Universal
Life Enterprise Plus and variable annuity products offset by lower sales on
single premium deferred annuity products.
Premiums ceded decreased $1,375 from $38,603 in 1995 to $37,288 in 1996,
due to lower direct premiums for the reinsured block of business.
Net investment and other income increased by $3,393 from 1995; this
increase was primarily attributable to increased invested assets, primarily
fixed maturities, mortgage loans on real estate and short-term investments,
in addition to lower investment expenses.
Expenses related to policy benefits, claims payments, insurance operations,
acquisition and state taxes and fees increased $49,394 to $283,622 in 1996
from $234,228 in 1995. This increase is partially attributed to increased
acquisition costs. Surrender benefits increased $20,022 from $28,621 in
1995 to $48,643 in 1996 while death claims, annuity and disability benefits
increased $9,784 from $13,878 in 1995 to $23,662 in 1996. Reserves ceded
increased $5,830 to $8,831 in 1996 from $3,001 in 1995. Commissions
increased $7,638 primarily as a result of the revised variable annuity
selling agreement with G.R. Phelps, previously discussed and increased
Universal Life Sales.
Reinsurance benefits and expenses ceded decreased $1,748 to $39,023 in 1996
from $40,771 in 1995.
Federal income tax expense increased by $1,287 from 1995. Taxable income
increased $2,644 from $13,131 in 1995 to $15,775. The change in taxable
income is primarily attributable to book to tax adjustments of $6,793,
offset by the decrease in taxable income of $4,149.
Net realized capital gains increased $1,554 from 1995 primarily due to
sales of unaffiliated common stocks.
Liquidity and Capital Resources
-------------------------------
C.M. Life's operations have historically provided substantial cash flow.
The majority of the Company's cash is invested in investment-grade
securities to provide ample protection for policyholders. The liabilities
of the Company are predominantly long-term in nature and, therefore, the
Company invests in long-term fixed maturity investments such as bonds.
C.M. Life's liquidity requirements were met by funds provided from
operations and investment activity. The primary uses of funds were to
purchase investments and to pay commissions, insurance operating expenses
and policy benefits.
Segment Information
-------------------
During 1996 and 1995, C.M. Life's operations consisted of one business
segment which was principally the sale of universal life insurance and
annuity products. C.M. Life was not dependent upon any single customer and
no single customer accounted for more than 10% of revenues in 1996 and
1995.
11
<PAGE>
Reserves
--------
In accordance with the life insurance laws and regulations under which
C.M. Life operates, it is obligated to carry on its books, as
liabilities, actuarially determined reserves to meet its obligations on
outstanding contracts. Reserves are based on mortality tables in
general use in the United States and are computed to equal amounts that,
with additions from premiums to be received, and with interest on such
reserves computed annually at certain assumed rates, will be sufficient
to meet C.M. Life's policy obligations at their maturities or in the
event of an insured's death. In the accompanying financial statements,
these reserves are determined in accordance with statutory regulations.
Competition
-----------
C.M. Life is engaged in a business that is highly competitive because of
the large number of stock and mutual life insurance companies and other
entities marketing insurance products comparable to those of C.M. Life.
At December 31, 1995, MassMutual had over $52 billion in life insurance
assets and $103 billion in total assets under management. Best's Insurance
Reports, Life-Health Edition, upgraded C.M. Life's rating on March 4, 1996
to the highest possible rating of A++. MassMutual's ratings were the
highest possible from A.M. Best (A++), Duff & Phelps (AAA), and the second-
highest rating from Moody's Investors Service (Aa1).
Regulation
----------
Currently, the Federal government does not directly regulate the business
of insurance. However, Federal legislative, regulatory and judicial
decisions and initiatives often have significant effects on C.M. Life's
business. Types of changes that are most likely to affect C.M. Life's
business include changes to: (a) the taxation of life insurance companies;
(b) the tax treatment of insurance products; (c) the securities laws,
particularly as they relate to insurance and annuity products; (d) the
"business of insurance" exemption from any of the provisions of the anti-
trust laws; and (e) declining barriers which prevent most banks from
selling or underwriting insurance.
12
<PAGE>
ITEM 6.
EXHIBITS AND REPORTS ON FORM 8-K
Form 8-K was filed on February 29, 1996 to disclose a Change in Control of
Registrant. The Registrant's sole shareholder, Connecticut Mutual Life
Insurance Company was merged with and into Massachusetts Mutual Life
Insurance Company with MassMutual as the surviving company on February 29,
1996 at 11:59 pm.
Form 8-K was filed on October 4, 1996 to disclose a change in Registrants
Certifying Accountant. The Registrant's previous certifying accountant was
Arthur Anderson, LLP. Effective October 2, 1996, the Registrants new
certifying accountant is Coopers & Lybrand, LLP.
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
C.M. Life Insurance Company
Date November 12, 1996 /s/ David E. Sams
----------------- ------------------------------
David E. Sams, Jr.
Director and President
Date November 12, 1996 /s/ John Miller, Jr
----------------- ------------------------------
John Miller, Jr.
Vice President and Comptroller
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM C.M. LIFE'S
SEPTEMBER 30, 1996 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.<F1>
</LEGEND>
<CIK> 0000883232
<NAME> C.M. LIFE INSURANCE COMPANY
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<DEBT-HELD-FOR-SALE> 742,924
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 54,727
<MORTGAGE> 32,068
<REAL-ESTATE> 0
<TOTAL-INVEST> 959,247
<CASH> 100,078
<RECOVER-REINSURE> 495
<DEFERRED-ACQUISITION> 0
<TOTAL-ASSETS> 1,778,263
<POLICY-LOSSES> 890,046
<UNEARNED-PREMIUMS> 0
<POLICY-OTHER> 2,290
<POLICY-HOLDER-FUNDS> 757,040
<NOTES-PAYABLE> 0
<COMMON> 2,500
0
0
<OTHER-SE> 114,878
<TOTAL-LIABILITY-AND-EQUITY> 1,778,263
238,305
<INVESTMENT-INCOME> 54,686
<INVESTMENT-GAINS> 846
<OTHER-INCOME> 6
<BENEFITS> 239,611
<UNDERWRITING-AMORTIZATION> 0
<UNDERWRITING-OTHER> 44,011
<INCOME-PRETAX> 10,215
<INCOME-TAX> 5,561
<INCOME-CONTINUING> 4,654
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,654
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
<FN>
<F1> C.M. LIFE'S FINANCIAL STATEMENTS HAVE BEEN PREPARED IN CONFORMITY WITH
ACCOUNTING PRACTICES AND PROCEDURES OF THE NATIONAL ASSOCIATION OF
INSURANCE COMMISSIONERS AS PRESCRIBED OR PERMITTED BY THE INSURANCE
DEPARTMENT OF THE STATE OF CONNECTICUT, UNDER THESE ACCOUNTING PRACTICES,
FIXED MATURITIES ELIGIBLE FOR AMORTIZATION ARE REPORTED AT AMORTIZED COST.
</FN>
</TABLE>
