Fort Worth Star-Telegram from Fort Worth, Texas • 52

EDNESDAYMNE 1 1994 i 1 ID d'IDPkil0k 01 It 0)It II BUSINESS EDNESDAYJUNE11994 FORT WORTH STAR-TELEGRAM FORT WORTH STATI-TETEallAM ECTION Arn-rintd I Construction spending increases for second straight month 1 COL 11S1g I New-home sales Percent change in single-family new-home sales seasonally adjusted Channel 5 makes a deal to provide TV programming for Channel 39i 20 Pow08 10 will supply programming for Channel 39 The deal is similar to one announced May 20 between KINWChannel 4 and KDFI: Channel 27 which had Channel 4 supplying' programming to Channe127 programming to Lnannel I 0 I 1 with mortgage rates rising sales of new homes fell 68 percent in April after a weather-related 64 percent advance in March The April increase in construction was slightly less than many analysts expected although it continued the rebound from weather-delays last winter Spending rose 19 percent in March Spending had dropped 23 percent in January and 02 percent in February when severe storms in much of the nation prevented builders from laying foundations and raising roofs (More on ECONOMY on Page 2) The Associated Press WASHINGTON Construction spend-pig rose a modest 06 percent in April held back by the fourth straight drop in public butlays the government said today Still it was the second straight increase following two months of declines when winter storms swept the nation The Commerce Department said residential non-residential and government spending totaled a seasonally adjusted $5085 billion up from a revised $5054 billion in March The original March estimate was $4954 billion The department had said yesterday that I WASHII 7ng rose a back by till butlays the Still it following tl ter storms The Cor dential n( spending $5085 bill billion in mate was The dell 10 Viewers can expect to see the first changes in KXTX's lineup of shows within a week By STEVEN COLE SMITH Fort Worth Star-Telegram FORT WORTH KXASChannel 5 is taking over the programming and production on KXTXChannel 39 effective tomorrow the stations announced yesterday The deal called a "local marketing agreement" means that although the ownership of both stations will stay the same Channel 5 I 0 I 0 :0 I JJASON 0J A ::1993 SOURCE Census Bureau Associated Press I Fort Worth Star-Iblegram "This agreement allows us to vastly expand' our commitment to news community service and children's programming in the Dallas Fort Worth area" said Gary Chapman president of UN Television Corp whi0 owns Channel 5 Initial plans are for Channel 5 which is kn: NBC affiliate to rebroadcast two hours pf: (More on STATION on Page 3) A 4- la 4 Most firms 11k0 A A 1 4 4 i i I 1 i 1 1 I a 1L Amusement chain looks at locations Am cha: at lc 154- Ex-IBMers take on the IRS VZ1 4 cut retirees 44 4 Ai from coverage 9 3 4 survey shows to Former IBM workers around the country say the severance payments they got for leaving the computer company shouldn't be taxed Their claim could set a national precedent for employees jettisoned by companies that are shrinking their work forces Discovery Zone may offer entertainment centers targeting teens and adults at three Metroplex sites by year's end Diseove entertail targetinl at three by year'! Study sees 'gradual erosioli!" in employer health benefit4r How workers In lower and upper IBM Income brackets would be affected: How workers in lower and upp affected: Ao 1 jv EDNESD 1 1 1 1 i 7 1 1 Employee No 2 ci Tax status: married Salary: 670000 Years of service: 26 Gross severance: 670000 Taxes on severance: in (31 bracket plus FICA) Ej $28455 $43t3 i IBM workers typically got severance of two weeks of pay for each year they worked up to one SOURCE: National Organization 01 Downsized Employees IBM workers typically got severance of twi year's pay SOURCE: National Organization 01 Downsized 1 Associated Press Fort Worth Sier4blegram 71EllEm7 ecrbOullez 111 621111 3 513 1 er IBM ems say IRS bite on severance is illegal case of money seen money due BY EVAN RAMSTAD The Associated Press NEW YORK Big Blue booted them and Uncle Sam took a chunk of their termination pay Now many former IBM workers are mobilizing to get that tax money back contending that the law is on their side The dispute could ripple far beyond the confines of the world's leading computer company A favorable outcome for these ex-employees ultimately could mean millions of dollars in tax refunds to other victims of the corporate reductions that have reshaped Amen-can business The combatanis are facing years in court with the Internal Revenue Service But these workers generally have $4000 to $30000 at stake Employee No 1 Tax status: single Salary: $300010 0 Years of service: 10 cl Gross severance: $11538 Taxes on severance (28 bracket plus FICA) 1 Employee No 1 IBM exes say a Tax status: single IRS bite on a Salary: $30 000 a Years of service: 10 a Gross severance: $11538 severance is 13 Taxes on severance: 4 111 egal case of (28 bracket plus FICA) i money seen money due 1 I BY EVAN RAMSTAD Th Associated Press NEW YORK Big Blue booted them and Uncle Sam took a chunk of their termination pay Now many former IBM workers are mobilizing 4 to get that tax money back contend- f' ing that the law is on their side 4 The dispute could ripple far be- I I yond the confines of the world's leading computer company A fa- vorable outcome for these ex- employees ultimately could mean millions of dollars in tax refunds to other victims of the corporate re- ductions that have reshaped Amen- i can business The combatanis are facing years in court with the Internal Revenue i Service But these workers generally have $4000 to $30000 at stake P' Le 0' 11- 4V 4 ote A4 Iofu -A wh' 0 -k A BY FRANK SWORODA The Washington Post Retirees are increasingly finding themselveg on their own when it comes to health-care ca- erage A new survey shows that most companies in the United States cut employees off from all coverage the moment they retire and that those that continue to provide coverage shift most ofthe cost onto the retiree The nationwide study of 2395 employers by A Foster Higgins Co a New York-based benefits consulting firm shows that among large companies those with 500 or more employees workers who take early retire ment are somewhat more apt to get continued coverage than those who have reached age 65 and are eligible for government health insurt ance under Medicare Among large companies 46 percent provide some coverage for early retirees while 39 percent provide insurance for Medicare-eligible retirees But fewer than one in five large employers is willing to pay the entire cost of health care for retirees while 40 percent of the comrliT nies that offer some form of health-care cov erage require the retiree to pay all thecosts Even at full cost however it may be cheaper for a retiree to buy coverage from his or her ex- employer than to buy an individual insurance policy Stephne Behrend the managing consultant who conducted the survey one of the larger of its kind in the United States said it showed a continuing "gradual erosion" in employer health-care benefits for retirees "Each year we've seen a significant number of companies that say they've terminated their benefits for retirees" Behrend said A new Census Bureau study shows a similar decline in employer health-care coverage for active workers The overall percentage of work- ers covered by employer health plans it concludes dropped from 66 percent in 1979 to 61 (More on HEALTH on Page 3) 1 I 2 5 3 group of mostly former IBM workers in Poughkeepsie NY has 1500 members on the mailing list Although it will not comment specifically on the former IBM workers the IRS disagrees saying the broad agreement that people typically sign in a corporate cutback is not meant to settle a specific injury But the IRS acknowledges some confusion within the agency itself Refunds have gone Out to a few people who signed such agreements and the IRS says through a spokesman that it is going after those "mistakes" Hundreds of thousands of Americans have lost their jobs in recent years as companies cut back to become more efficient Challenger (More on IBM on Page 3) enough to make several hundred want to fight They view their departing payment as a legal settlement because they signed agreements not to sue IBM after they left The IRS sometimes exempts from income tax certain kinds of settlements such as personal injury awards and awards for some types of discrimination The former IBM workers believe they qualify Many believe they could have raised age discrimination as an issue if they had not promised not to sue "A lot of grief has been caused by these job cuts and the fact that they have to pay this high tax hurts even more" said Lowell Hoffman president of the National Organization of Downsized Employees The enough to make several hu want to fight They view their departing ment as a legal settlement be they signed agreements not I IBM after they left The IRS' times exempts from income ta tam kinds of settlements su personal injury awards and al for some types of discrimim The former IBM workers IN they qualify Many believe they could raised age discrimination as an if they had not promised not tc "A lot of grief has been caus these job cuts and the fact tha have to pay this high tax hurts more" said Lowell Hoffman dent of the National Organi2 of Downsized Employees BY LAURA VOZZELLA Fort Worth Star-Telegram ARLINGTON Discovery Zone peddler of primary-colored prepubescent fun is looking at sites in Arlington Northeast Tarrant County and north Dallas for a new of huge restaurant-playgrounds for older children and adults The Chicago-based company is scouting five- to seven-acre sites near The Parks at Arlington Mall and The Ballpark in Arlington near the intersection of Texas 121 and 183 in the Hurst-Euless-Bedford area and along Interstate 635 and the Dallas North Tollway in north Dallas said Jon Gaulding Discovery Zone director of development Officials hope to have three Enchanted Castle indoor amusement centers under construction in Fort Worth-Dallas by year's end Gauld mg said Discovery Zone a fast-growing 5-year-old company owns more than 210 indoor playgrounds where children 12 and under romp on brightly colored slides tubes and jungle gyms It opened its first Fort Worth-Dallas location in May 1993 4nd now has 10 with another on the way in Lewisville Enchanted Castle will aim to entertain grown-ups and teens although it will include a "soft play" area similar to Discovery Zone for 'youngsters Gaulding said It will be 'geared toward family ment and corporate "stress-busting outings" "This is totally different from Discovery Zone It's just part intertainment family" Gaulding laid "We really target families and Sit also target the corporate crowd" 4 4 Behind a facade built to look like castle the amusement center will plend a Medieval theme with high and low-tech entertainment fine 'dining and fast food 4-1' Patrons will be able to choose trom games including virtual teality laser-tag traditional boardwalk games fancy bumper cars an elaborate miniature golf aourse video games karaoke and a variety of live entertainment There will be one or two restaurants and private banquet rooms offering foods ranging from pizza to lobster Enchanted Castle reflects an increasingly common attempt to entertain customers as they shop and dine said Linda Hyde director of (More on FUN on Page 3) BY ARLIN Zone ped prepubeso in Arling County an playgrounl adults The Ch scouting I near The and The the inters( 183 in ti area and the Dallas Dallas sal ery Zone Official! chanted centers un Worth-Da mg said Discove 5-year-old than 21( where chi' on jungle gyn Worth-Da 4nd now Way in Lev 1 Enchan i Iertain gr it area simil 'youngster: 'geared t( ment and outings" "This Discovery intertainn laid "We Sve also tar i 4 4 Behind ki li castle ti plend a i 'and low 1 dining an( -azm3mmgrx11 MI BY EDMUND ANDREWS The NeN otk Times To understand why the long-distance company Sprint is eager to merge with 3 Sprint EDS see mutual benefits theircomputer screens "The problem is that you have one person who writes the computer applications and a different person who sets up the communication lines" said DiGiore who uses MCI Corp for long-distance service -We can do a yeoman's job of talking to the computer vendors but they don't have a clue about how to move things from Washington to New York" That gap between expertise in computing and communications is part of what is driving Sprint which owns the nation's third-largest long-distance carrier after and MCI into merger talks with General Motors' Electronic Data Systems division or EDS With $85 billion in revenues and 7000 corporate customers around the world Plano-based EDS is a leader in designing computer systems that incorporate equipment and software from scores of vendors It was also a pioneer of computer "outsourcing" that is taking over a company's data processing for such tasks as payroll accounting and credit card fication DiGiore said that teaming up EDS and Sprint "could be a tremendous benefit if it's done correctly" Industry analysts note that the prospective marriage between Sprint and EDS disclosed in mid-May would in large part be one of con venience General Motors would love to meet its (More on EDS on Page 3) As the manager of information systems at Empire of America Realty a mortgage company based in Buffalo NY DiGiore has developed a highspeed computer network that links lendingofficers in 20 cities Loan applications home appraisals and credit reports fly across the network electronically as the company seeks to speed up loan approvals and pull in more business But like many corporate information managers DiGiore would like to do more Computer companies for example have been showing him systems that would let Empires agents in different cities look at images of a document and converse through video windows on Merger would help bridge gap in computing communications the computer-services provider EDS talk to a potential customer Jim it CBS to emphasize the positive at annual conference of affiliate stations it 4 Do 1-0 Jou 1611 iSS ry 1 I 1 4 4 era Dow Jones 1 imemme 16 11 1819 20 23 24 212827 31'1 "I wouldn't say he Jeff Saganskyl did it singk-handedly but certainly his creative capabilities have enhanced CBS' programming position over the years" analyst Jefflogsdon managing director of Seidler Cos '1 agig- ti'AltT 4 11- 40101 I i lows CBS for Smith Barney Shearson Inc What CBS has includes two new shows of ticular interest: Chicago Hope a Thursday night medical drama from Picket Fences creator and executive producer David Kelley and The Boys Are Back a comedy starring Hal Linden and Suzanne Pleshette in which a group of sons in their 20s return home Affiliates may want to talk more about what's missing That includes Sagansky who delivered admirable overall ratings if perhaps less skewed toward younger audiences that advertisers prefer (ABC leads in the I 8-to-49-year-old category) "I wouldn't say he did it single-handedly but certainly his creative capabilities have enhanced CBS' programming position over the last four or (More on CBS on Page 3) The Associated Press LOS ANGELES Champion ratings aside CBS has plenty of room for worries as its affiliate stations begin their annual conference today Programming whiz Jeff Sagansky credited with turning ratings around departs this summer Eight stations including Dallas' KDFW Channel 4 are defecting to Fox Perhaps most sensitive is the loss of National Football League broadcasts also to Fox that have been big moneymakers for stations The meeting closed to the public runs through Friday in Los Angeles and will remain primarily what all such gatherings are: a rah-rah session to get stations enthusiastic about the new season's offerings CBS was first in daytime prime time and nighttime last year something no network had tztaes Contract to July $1831 per barrel 3028 I I tztaes Contract for July $1831 per banal 3028 I ------') ever done In times when upstart networks and cable channels made for more competition the accomplishment might have reinstated CBS' stature as the Tiffany Network "But it's always 'What have you got for me said analyst John Reidy who fol 1 CBS ratings are credited largely to programming executive Jeff S1 gansky who leaves this summer NN Mar )(111 11104' en4CTBrt) 441i 111Pri'' 1 I Fort Wort StarIblegram 4 4 4 weaotweeva.