Harbinger Group Inc.
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SEC Filings

10-K
HRG GROUP, INC. filed this Form 10-K on 12/21/1995
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<PAGE>
 
                               ZAPATA CORPORATION
 
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
 
NOTE 12. FINANCIAL INSTRUMENTS--(CONTINUED)
 
  At September 30, 1995 and 1994 the Company had cash deposits concentrated
primarily in three major banks. In addition, the Company had certificates of
deposits, commercial paper and Eurodollar time deposits with a variety of
companies and financial institutions with strong credit ratings. As a result of
the foregoing, the Company believes that credit risk in such instruments is
minimal.
 
NOTE 13. BENEFIT PLANS
 
 Qualified Defined Benefit Plans
 
  Zapata has two noncontributory defined benefit pension plans covering certain
U.S. employees. Plan benefits are generally based on employees' years of
service and compensation level. All of the costs of these plans are borne by
Zapata. The plans have adopted an excess benefit formula integrated with
covered compensation. Participants are 100% vested in the accrued benefit after
five years of service.
 
  Net pension credits for 1995, 1994 and 1993 included the following
components:
 

<TABLE>
<CAPTION>
                                                        1995    1994    1993
                                                       ------  ------  -------
                                                          (IN THOUSANDS)
      <S>                                              <C>     <C>     <C>
      Service cost--benefits earned during the year... $  567  $  692  $   660
      Interest cost on projected benefit obligations..  2,354   2,278    1,982
      Actual loss (gain) on plan assets............... (6,452) (2,730)   1,028
      Amortization of transition assets and other
       deferrals......................................  2,864    (546)  (5,445)
                                                       ------  ------  -------
        Net pension credit............................ $ (667) $ (306) $(1,775)
                                                       ======  ======  =======
</TABLE>

 
  The Company's funding policy is to make contributions as required by
applicable regulations. No contributions to the plans have been required since
1984. The plans' funded status and amounts recognized in the Company's balance
sheet at September 30, 1995 and 1994 are presented below:
 

<TABLE>
<CAPTION>
                                                               1995     1994
                                                              -------  -------
                                                              (IN THOUSANDS)
      <S>                                                     <C>      <C>
      Fair value of plan assets.............................. $43,242  $38,899
                                                              -------  -------
      Actuarial present value of benefit obligations:
        Vested benefits......................................  33,664   31,503
        Nonvested benefits...................................     348      782
                                                              -------  -------
        Accumulated benefit obligation.......................  34,012   32,285
        Additional benefits based on projected salary
         increases...........................................   1,741    2,126
                                                              -------  -------
        Projected benefit obligations........................  35,753   34,411
                                                              -------  -------
      Excess of plan assets over projected benefit
       obligations...........................................   7,489    4,488
      Unrecognized transition asset..........................  (5,861)  (6,698)
      Unrecognized prior service cost........................     123      151
      Unrecognized net loss..................................   8,404   11,547
                                                              -------  -------
      Prepaid pension cost................................... $10,155  $ 9,488
                                                              =======  =======
</TABLE>

 
  The unrecognized transition assets at October 1, 1987, was $10.6 million,
which is being amortized over 15 years. For 1995 and 1994 the actuarial present
value of the projected benefit obligation was based on a 4.75% weighted average
annual increase in salary levels and a 7.5% discount rate. Pension plan assets
are
 
                                       48

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