<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Mark One):
[ 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 REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934.
For the transition period from ______________to _____________
Commission file number 1-2384
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
TRW Employee Stock Ownership
and Savings Plan
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive officer:
TRW Inc.
1900 Richmond Road
Cleveland, Ohio 44124
<PAGE> 2
Audited Financial Statements
THE TRW EMPLOYEE STOCK
OWNERSHIP AND SAVINGS PLAN
December 31, 1999 and 1998
PLAN NUMBER: 027
PLAN SPONSOR
TRW Inc.
EMPLOYER IDENTIFICATION NUMBER: 34-0575430
PLAN ADMINISTRATOR
TRW Inc.
<PAGE> 3
Report of Independent Auditors
Board of Administration
The TRW Employee Stock Ownership
and Savings Plan
We have audited the accompanying statements of net assets available for benefits
of The TRW Employee Stock Ownership and Savings Plan as of December 31, 1999 and
1998, and the related statements of changes in net assets available for
benefits, with fund information, for the years then ended. 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 in accordance with auditing standards generally accepted
in the United States. 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 and 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 benefits of The TRW Employee
Stock Ownership and Savings Plan as of December 31, 1999 and 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.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental schedule of
assets held for investment purposes as of December 31, 1999, and the schedule of
reportable transactions for the year then ended are presented for purposes of
complying with the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974, and are
not a required part of the basic financial statements. The Fund Information in
the statement of net assets available for benefits and the statement of changes
in net assets available for benefits is presented for purposes of additional
analysis rather than to present the net assets available for benefits and
changes in net assets available for benefits of each fund. The supplemental
schedules and Fund Information have been subjected to the auditing procedures
applied in our audit of the 1999 financial statements and, in our opinion, are
fairly stated in all material respects in relation to the 1999 basic financial
statements taken as a whole.
April 27, 2000
1
<PAGE> 4
The TRW Employee Stock Ownership and Savings Plan
Statements of Net Assets Available for Benefits, with Fund Information
December 31, 1999
<TABLE>
<CAPTION>
TRW Stock Fund Primco
--------------------------------- Putnam Stable
Participant Non-Participant S&P 500 Value
Directed Directed Index Portfolio Fund
--------------------------------- ----------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments:
TRW Common Stock $ 378,560,209 $660,439,454
Shares of Putnam Income Fund
Shares of PBHG Emerging Growth Fund
Shares of Bernstein International Value Portfolio
Shares of Putnam Investors Fund
Shares of George Putnam Fund of Boston
Putnam S&P 500 Index Portfolio $866,910,952
Putnam Small Company Equity Portfolio
Primco Stable Value Fund $502,627,561
Participant loan receivables
Cash 514,122
Receivable from TRW
Receivable for investments sold 72,078
Receivable for portfolio shares issued 1,941,818 269,118
Interest and dividends receivable 770,957 2,592,276
Receivable from other funds 6,938 1,154,624
Receivable for futures 50,150
---------------------------------------------------------------------
Total assets 378,567,147 660,439,454 870,260,077 506,643,579
LIABILITIES
Accrued expenses 22,292 39,629 178,370 133,080
Payable for securities purchased 263,014
Payable for portfolio shares redeemed 287,786 814,777
---------------------------------------------------------------------
Total liabilities 22,292 39,629 729,170 947,857
---------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $ 378,544,855 $ 660,399,825 $ 869,530,907 $ 505,695,722
=====================================================================
</TABLE>
<TABLE>
<CAPTION>
Putnam
Small Bernstein
Company Putnam PBHG International Putnam
Equity Income Emerging Value Investors
Portfolio Fund Growth Fund Portfolio II Fund
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments:
TRW Common Stock
Shares of Putnam Income Fund $ 42,930,612
Shares of PBHG Emerging Growth Fund $ 54,766,148
Shares of Bernstein International Value Portfolio $ 34,338,870
Shares of Putnam Investors Fund $191,053,304
Shares of George Putnam Fund of Boston
Putnam S&P 500 Index Portfolio
Putnam Small Company Equity Portfolio $ 166,712,922
Primco Stable Value Fund
Participant loan receivables
Cash 200,297
Receivable from TRW 746,535
Receivable for investments sold
Receivable for portfolio shares issued
Interest and dividends receivable 133,359
Receivable from other funds
Receivable for futures 65,637
------------------------------------------------------------------------------
Total assets 167,858,750 42,930,612 54,766,148 34,338,870 191,053,304
LIABILITIES
Accrued expenses 41,627 2,708 1,972 1,895 9,628
Payable for securities purchased
Payable for portfolio shares redeemed 70,760
------------------------------------------------------------------------------
Total liabilities 112,387 2,708 1,972 1,895 9,628
------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $ 167,746,363 $ 42,927,904 $ 54,764,176 $ 34,336,975 $ 191,043,676
==============================================================================
</TABLE>
<TABLE>
<CAPTION>
George Putnam Loan
Fund of Boston Fund Total
-----------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments:
TRW Common Stock $ 1,038,999,663
Shares of Putnam Income Fund 42,930,612
Shares of PBHG Emerging Growth Fund 54,766,148
Shares of Bernstein International Value Portfolio 34,338,870
Shares of Putnam Investors Fund 191,053,304
Shares of George Putnam Fund of Boston $ 55,735,698 55,735,698
Putnam S&P 500 Index Portfolio 866,910,952
Putnam Small Company Equity Portfolio 166,712,922
Primco Stable Value Fund 502,627,561
Participant loan receivables $ 61,552,113 61,552,113
Cash 714,419
Receivable from TRW 746,535
Receivable for investments sold 72,078
Receivable for portfolio shares issued 2,210,936
Interest and dividends receivable 3,496,592
Receivable from other funds 1,161,562
Receivable for futures 115,787
-----------------------------------------------------
Total assets 55,735,698 61,552,113 3,024,145,752
LIABILITIES
Accrued expenses 3,619 434,820
Payable for securities purchased 263,014
Payable for portfolio shares redeemed 1,173,323
-----------------------------------------------------
Total liabilities 3,619 1,871,157
-----------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $ 55,732,079 $ 61,552,113 $ 3,022,274,595
=====================================================
</TABLE>
2
<PAGE> 5
The TRW Employee Stock Ownership and Savings Plan
Statements of Changes in Net Assets Available for Benefits, with Fund
Information
Year Ended December 31, 1999
<TABLE>
<CAPTION>
TRW Stock Fund Primco
--------------------------------- Putnam Stable
Participant Non-Participant S&P 500 Value
Directed Directed Index Portfolio Fund
--------------------------------- ----------------------------------
<S> <C> <C> <C> <C>
Investment income:
Dividends $ 9,821,227 $ 16,999,218 $ 2,648
Interest $ 29,006,648
---------------------------------------------------------------------
Total investment income 9,821,227 16,999,218 2,648 29,006,648
Contributions from TRW Inc. 49,562,603
Contributions from participants 36,243,015 55,633,201 27,505,422
Net realized gain (loss) on sale of investments 21,126,949 23,142,238 36,600,600
Net unrealized appreciation (depreciation) of
investments (40,138,095) (77,604,024) 116,951,970
Transfers from other funds 106,401,453 492,784 113,738,233 209,385,152
Transfer from other plan 625,611 3,027,058 10,752,848 18,192,736
Interest income on participant loans
Loan issues
Other 543 5 530
---------------------------------------------------------------------
134,080,160 15,620,420 333,679,505 284,090,488
Less:
Distributions 38,939,704 78,891,774 80,203,082 73,882,001
Excess contributions 1,839 331
Loan repayments
---------------------------------------------------------------------
38,939,704 78,891,774 80,204,921 73,882,332
Administrative expenses 151,019 213,097 271,492 81,290
Transfers to other funds 109,201,025 4,875,989 135,352,516 188,668,562
Transfers to other plans 123,417 372,341 364,988 87,184
---------------------------------------------------------------------
148,415,165 84,353,201 216,193,917 262,719,368
---------------------------------------------------------------------
Increase (decrease) in net assets for the year (14,335,005) (68,732,781) 117,485,588 21,371,120
Net assets available for benefits at beginning
of year 392,879,860 729,132,606 752,045,319 484,324,602
---------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 378,544,855 $ 660,399,825 $ 869,530,907 $ 505,695,722
=====================================================================
</TABLE>
<TABLE>
<CAPTION>
Putnam
Small Bernstein
Company Putnam PBHG International Putnam
Equity Income Emerging Value Investors
Portfolio Fund Growth Fund Portfolio II Fund
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment income:
Dividends $ 3,034,528 $ 1,734,664 $ 353,875 $ 1,274,407
Interest
--------------------------------------------------------------------------------
Total investment income 3,034,528 1,734,664 353,875 1,274,407
Contributions from TRW Inc.
Contributions from participants 18,864,508 5,422,725 6,738,336 4,545,622 22,736,200
Net realized gain (loss) on sale of investments 4,812,796 (1,253,241) 113,189 (107,156) 6,336,808
Net unrealized appreciation (depreciation) of
investments 36,310,324 (2,588,932) 14,926,023 4,670,450 35,457,057
Transfers from other funds 17,248,332 27,480,327 23,717,911 18,604,419 96,623,291
Transfer from other plan 146,908 7,007,873 13,349,170 3,532,876 35,657,695
Interest income on participant loans
Loan issues
Other 2 1
--------------------------------------------------------------------------------
77,382,870 39,103,280 60,579,293 31,600,086 198,085,459
Less:
Distributions 13,299,460 5,918,562 3,076,614 2,415,383 18,454,085
Excess contributions 16 358 392 243 1,805
Loan repayments
--------------------------------------------------------------------------------
13,299,476 5,918,920 3,077,006 2,415,626 18,455,890
Administrative expenses 53,762 17,404 13,543 9,872 54,643
Transfers to other funds 40,456,897 35,176,872 20,014,039 12,669,338 69,634,070
Transfers to other plans 31,859 1,849 2,659 12,842 62,166
--------------------------------------------------------------------------------
53,841,994 41,115,045 23,107,247 15,107,678 88,206,769
--------------------------------------------------------------------------------
Increase (decrease) in net assets for the year 23,540,876 (2,011,765) 37,472,046 16,492,408 109,878,690
Net assets available for benefits at beginning
of year 144,205,487 44,939,669 17,292,130 17,844,567 81,164,986
--------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 167,746,363 $ 42,927,904 $ 54,764,176 $ 34,336,975 $ 191,043,676
================================================================================
</TABLE>
<TABLE>
<CAPTION>
George Putnam Loan
Fund of Boston Fund Total
----------------------------------------------------
<S> <C> <C> <C>
Investment income:
Dividends $ 6,029,305 $ 39,249,872
Interest 29,006,648
----------------------------------------------------
Total investment income 6,029,305 68,256,520
Contributions from TRW Inc. 49,562,603
Contributions from participants 7,870,431 185,559,460
Net realized gain (loss) on sale of investments (448,947) 90,323,236
Net unrealized appreciation (depreciation) of
investments (5,538,949) 82,445,824
Transfers from other funds 19,038,404 632,730,306
Transfer from other plan 22,851,531 $ 2,051,942 117,196,248
Interest income on participant loans 5,474,764 5,474,764
Loan issues 27,049,508 27,049,508
Other 1,024 2,105
----------------------------------------------------
49,802,799 34,576,214 1,258,600,574
Less:
Distributions 8,003,187 323,083,852
Excess contributions 1,446 6,430
Loan repayments 36,153,183 36,153,183
----------------------------------------------------
8,004,633 36,153,183 359,243,465
Administrative expenses 21,053 887,175
Transfers to other funds 16,680,998 632,730,306
Transfers to other plans 2,887 67,081 1,129,273
----------------------------------------------------
24,709,571 36,220,264 993,990,219
----------------------------------------------------
Increase (decrease) in net assets for the year 25,093,228 (1,644,050) 264,610,355
Net assets available for benefits at beginning
of year 30,638,851 63,196,163 2,757,664,240
----------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 55,732,079 $ 61,552,113 $ 3,022,274,595
====================================================
</TABLE>
3
<PAGE> 6
The TRW Employee Stock Ownership and Savings Plan
Statements of Net Assets Available for Benefits, with Fund Information
December 31, 1998
<TABLE>
<CAPTION>
TRW Stock Fund Primco
--------------------------------- Putnam Stable
Participant Non-Participant S&P 500 Value
Directed Directed Index Portfolio Fund
--------------------------------- -----------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments:
TRW Common Stock $ 392,896,554 $ 729,163,609
Shares of Putnam Income Fund
Shares of PBHG Emerging Growth Fund
Shares of Bernstein International Value Portfolio
Shares of Putnam Investors Fund
Shares of George Putnam Fund of Boston
Putnam S&P 500 Index Portfolio $ 752,463,764
Putnam Small Company Equity Portfolio
Primco Stable Value Fund $ 481,494,878
Participant loan receivables
Cash
Receivable for investments sold 4,290,389
Receivable for portfolio shares issued 1,829,427
Receivable for portfolio shares sold
Interest and dividends receivable 792,728 2,495,751
Receivable from pending transaction 458,186
Receivable for futures 34,074
----------------------------------------------------------------------
Total assets 392,896,554 729,163,609 759,410,382 484,448,815
LIABILITIES
Accrued expenses 16,694 31,003 33,212 124,213
Payable for securities purchased 6,817,198
Payable for portfolio shares purchased
Cash overdraft 395,741
Payable for compensation to manager 118,912
----------------------------------------------------------------------
Total liabilities 16,694 31,003 7,365,063 124,213
----------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $ 392,879,860 $ 729,132,606 $ 752,045,319 $ 484,324,602
======================================================================
</TABLE>
<TABLE>
<CAPTION>
Putnam
Small Bernstein
Company Putnam PBHG International Putnam
Equity Income Emerging Value Investors
Portfolio Fund Growth Fund Portfolio II Fund
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments:
TRW Common Stock
Shares of Putnam Income Fund $ 44,941,929
Shares of PBHG Emerging Growth Fund $ 17,292,794
Shares of Bernstein International Value Portfolio $ 17,845,418
Shares of Putnam Investors Fund $ 81,168,033
Shares of George Putnam Fund of Boston
Putnam S&P 500 Index Portfolio
Putnam Small Company Equity Portfolio 135,355,152
Primco Stable Value Fund
Participant loan receivables
Cash 105,980
Receivable for investments sold 7,947,211
Receivable for portfolio shares issued
Receivable for portfolio shares sold 699,936
Interest and dividends receivable 161,088
Receivable from pending transaction
Receivable for futures 101,729
------------------------------------------------------------------------------
Total assets 144,371,096 44,941,929 17,292,794 17,845,418 81,168,033
LIABILITIES
Accrued expenses 6,222 2,260 665 851 3,047
Payable for securities purchased
Payable for portfolio shares purchased 130,827
Cash overdraft
Payable for compensation to manager 28,560
------------------------------------------------------------------------------
Total liabilities 165,609 2,260 665 851 3,047
------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS 144,205,487 $ 44,939,669 $ 17,292,129 $ 17,844,567 $ 81,164,986
==============================================================================
</TABLE>
<TABLE>
<CAPTION>
George Putnam Loan
Fund of Boston Fund Total
----------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments:
TRW Common Stock $ 1,122,060,163
Shares of Putnam Income Fund 44,941,929
Shares of PBHG Emerging Growth Fund 17,292,794
Shares of Bernstein International Value Portfolio 17,845,418
Shares of Putnam Investors Fund 81,168,033
Shares of George Putnam Fund of Boston $ 30,640,158 30,640,158
Putnam S&P 500 Index Portfolio 752,463,764
Putnam Small Company Equity Portfolio 135,355,152
Primco Stable Value Fund 481,494,878
Participant loan receivables $ 63,196,163 63,196,163
Cash 105,980
Receivable for investments sold 12,237,600
Receivable for portfolio shares issued 1,829,427
Receivable for portfolio shares sold 699,936
Interest and dividends receivable 3,449,567
Receivable from pending transaction 458,186
Receivable for futures 135,803
----------------------------------------------------
Total assets 30,640,158 63,196,163 2,765,374,951
LIABILITIES
Accrued expenses 1,306 219,473
Payable for securities purchased 6,817,198
Payable for portfolio shares purchased 130,827
Cash overdraft 395,741
Payable for compensation to manager 147,472
----------------------------------------------------
Total liabilities 1,306 7,710,711
----------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS $ 30,638,852 $ 63,196,163 $ 2,757,664,240
====================================================
</TABLE>
4
<PAGE> 7
The TRW Employee Stock Ownership and Savings Plan
Statements of Changes in Net Assets Available for Benefits, with Fund
Information
Year Ended December 31, 1998
<TABLE>
<CAPTION>
TRW Stock Fund Primco
--------------------------------- Putnam Stable
Participant Non-Participant S&P 500 Value
Directed Directed Index Portfolio Fund
--------------------------------- -----------------------------------
<S> <C> <C> <C> <C>
Investment income:
Dividends $ 9,228,900 $ 16,602,547 $ 1,529
Interest $ 29,415,411
----------------------------------------------------------------------
Total investment income 9,228,900 16,602,547 1,529 29,415,411
Contributions from TRW Inc. 45,883,426
Contributions from participants 43,729,092 52,024,041 30,228,867
Net realized gain on sale of investments 32,818,802 27,894,961 16,070,506
Net unrealized appreciation (depreciation) of
investments (11,095,420) 6,748,112 155,033,320
Transfers from other funds 61,567,391 74,899 101,408,939 154,030,552
Transfer from other plan 345,619 222,138 2,668,948
Interest income on participant loans
Loan issues
Other 94,916 133,006 52,274
----------------------------------------------------------------------
136,689,300 97,203,945 324,893,479 216,396,052
Less:
Distributions 39,557,439 77,154,377 61,105,486 67,243,432
Excess contributions 935 558
Loan repayments
----------------------------------------------------------------------
39,557,439 77,154,377 61,106,421 67,243,990
Administrative expenses 140,533 248,465 229,752 579,050
Transfers to other funds 114,367,305 6,929,343 142,232,423 167,568,134
----------------------------------------------------------------------
154,065,277 84,332,185 203,568,596 235,391,174
----------------------------------------------------------------------
Increase (decrease) in net assets for the year (17,375,977) 12,871,760 121,324,883 (18,995,122)
Net assets available for benefits at beginning
of year 410,255,837 716,260,846 630,720,436 503,319,724
----------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 392,879,860 $ 729,132,606 $ 752,045,319 $ 484,324,602
======================================================================
</TABLE>
<TABLE>
<CAPTION>
Putnam
Small Bernstein
Company Putnam PBHG International Putnam
Equity Income Emerging Value Investors
Portfolio Fund Growth Fund Portfolio II Fund
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment income:
Dividends $ 65,275 $ 2,473,009 $ 57,904 $ 1,645,022 $ 1,977,161
Interest
--------------------------------------------------------------------------------
Total investment income 65,275 2,473,009 57,904 1,645,022 1,977,161
Contributions from TRW Inc.
Contributions from participants 23,376,718 5,002,329 3,697,049 2,600,816 8,410,304
Net realized gain on sale of investments 186,818 (304,354) (535,614) (450,961) 45,848
Net unrealized appreciation (depreciation) of
investments 10,329,010 (960,815) 578,870 (2,068,885) 10,093,828
Transfers from other funds 35,432,464 49,010,175 25,351,725 27,414,926 93,155,175
Transfer from other plan 193,192 153,725 138,966 140,814 221,707
Interest income on participant loans
Loan issues
Other 6,710 142 4 353
--------------------------------------------------------------------------------
69,590,187 55,374,211 29,288,904 29,281,732 113,904,376
Less:
Distributions 12,279,641 5,721,283 1,006,821 724,051 2,917,485
Excess contributions 217 49 14 20 46
Loan repayments
--------------------------------------------------------------------------------
12,279,858 5,721,332 1,006,835 724,071 2,917,531
Administrative expenses 19,981 6,702 4,326 4,360 14,232
Transfers to other funds 61,011,804 31,935,542 10,985,613 10,708,734 29,807,627
--------------------------------------------------------------------------------
73,311,643 37,663,576 11,996,774 11,437,165 32,739,390
--------------------------------------------------------------------------------
Increase (decrease) in net assets for the year (3,721,456) 17,710,635 17,292,130 17,844,567 81,164,986
Net assets available for benefits at beginning
of year 147,926,943 27,229,034
--------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 144,205,487 $ 44,939,669 $ 17,292,130 $ 17,844,567 $ 81,164,986
================================================================================
</TABLE>
<TABLE>
<CAPTION>
George Putnam Loan
Fund of Boston Fund Total
----------------------------------------------------
<S> <C> <C> <C>
Investment income:
Dividends $ 2,520,664 $ 34,572,011
Interest 29,415,411
----------------------------------------------------
Total investment income 2,520,664 63,987,422
Contributions from TRW Inc. 45,883,426
Contributions from participants 3,824,638 172,893,854
Net realized gain on sale of investments (104,672) 75,621,334
Net unrealized appreciation (depreciation) of
investments (976,697) 167,681,323
Transfers from other funds 36,831,444 584,277,690
Transfer from other plan 159,571 4,244,680
Interest income on participant loans $ 5,743,582 5,743,582
Loan issues 28,887,908 28,887,908
Other 16,321 303,726
----------------------------------------------------
42,271,269 34,631,490 1,149,524,945
Less:
Distributions 2,894,781 270,604,796
Excess contributions 18 1,857
Loan repayments 35,112,707 35,112,707
----------------------------------------------------
2,894,799 35,112,707 305,719,360
Administrative expenses 6,454 1,253,855
Transfers to other funds 8,731,165 584,277,690
----------------------------------------------------
11,632,418 35,112,707 891,250,905
----------------------------------------------------
Increase (decrease) in net assets for the year 30,638,851 (481,217) 258,274,040
Net assets available for benefits at beginning
of year 63,677,380 2,499,390,200
----------------------------------------------------
NET ASSETS AVAILABLE FOR BENEFITS AT END OF YEAR $ 30,638,851 $ 63,196,163 $ 2,757,664,240
====================================================
</TABLE>
5
<PAGE> 8
The TRW Employee Stock Ownership and Savings Plan
Notes to Financial Statements
December 31, 1999 and 1998
A. SIGNIFICANT ACCOUNTING POLICIES
TRW STOCK FUND
Investments in the TRW Stock Fund consist primarily of TRW Inc. (TRW) common
stock, which is traded on the New York Stock Exchange and valued at the last
reported sales price on the last business day of the Plan's fiscal year.
PUTNAM S&P 500 INDEX FUND
Investments in the Putnam S&P 500 Index Fund are valued at the redemption price
established by the Trustee, which is based on the fair value of the Putnam S&P
500 Index Fund Trust assets on the last business day of the Plan's fiscal year.
This Fund is constructed and maintained with the objective of providing
investment results which approximate the overall performance of the Standard &
Poor's Composite Index of 500 stocks. Income is accumulated and reinvested in
the Fund and included in the determination of share values.
PRIMCO STABLE VALUE FUND
The Primco Stable Value Fund consists of fully benefit responsive investment
contracts with insurance companies, banks and other financial institutions and
short-term investment funds. Benefit responsive contracts provide contract value
payments for participant disbursements, loans and investment transfers as
allowed under the plan. There are exceptions for payments to participants who,
as a result of a corporate event, cease to be employed by TRW. A corporate event
includes a divestiture of an operating unit (for example, a subsidiary or a
division), a significant special early retirement program or other corporate
action that could be construed as causing increased Plan payments to
participants.
Investment contracts provide a stated rate of interest on principal for a stated
period of time. All investment contracts are accounted for at contract value
because they are fully benefit responsive. In accordance with Statement of
Position 94-4, contract value equals fair value because no event has occurred
that affects the value of any contracts. The investment contracts are of three
types: general account, separate account, and synthetic investment contracts.
Investment contracts in the general account of an insurance company where assets
are not specifically identifiable have fixed rates of interest or an indexed
rate of interest for the life of the contract. Investment contracts in separate
accounts of an insurance company have underlying assets that are specifically
identifiable and held for the benefit of the Plan.
6
<PAGE> 9
The TRW Employee Stock Ownership and Savings Plan
Notes to Financial Statements -- Continued
A. SIGNIFICANT ACCOUNTING POLICIES--CONTINUED
Under synthetic investment contracts, the Plan owns assets with an investment
contract from an insurance company, bank or other financial institution
surrounding the asset. Both separate account and synthetic contracts have
periodic interest rate resets (monthly, quarterly, or semi-annually) based on
the performance of the underlying assets. All separate account and synthetic
contracts have a guaranteed return of principal. As of December 31, 1999 and
1998, approximately $34 and $47 million was invested in general account assets,
$129 and $145 million in separate account assets, and $320 and $269 million in
assets owned by the Plan, respectively.
The weighted average yield (excluding administrative expenses) for all
investment contracts was 5.89% and 6.17% in 1999 and 1998, respectively. The
crediting interest rate for all investment contracts was 6.32% at December 31,
1999 and 6.19% at December 31, 1998.
PUTNAM SMALL COMPANY EQUITY PORTFOLIO
Investments in the Small Company Equity Portfolio are valued at the redemption
price established by the Trustee, which is based on the fair value of the Putnam
Small Company Equity Fund assets on the last business day of the Plan's fiscal
year. The Putnam Small Company Equity Portfolio is constructed and maintained
with the objective of providing investment results which approximate the overall
performance of the 2,500 common stocks included in the Russell 3000 Equity Index
less those common stocks included in the S&P 500. Income is accumulated and
reinvested in the Fund and included in the determination of share values.
PUTNAM INCOME FUND
Investments in the Putnam Income Fund are valued at the redemption price
established by the Trustee on the last business day of the Plan's fiscal year.
The Fund is managed by the Trustee and is invested in a broad, diversified
portfolio of debt securities issued by the U.S. Treasury and other government
agencies and in debt securities of credit-worthy corporations. Income is
accumulated and reinvested in the fund and included in the determination of the
share value.
7
<PAGE> 10
The TRW Employee Stock Ownership and Savings Plan
Notes to Financial Statements -- Continued
A. SIGNIFICANT ACCOUNTING POLICIES--CONTINUED
PUTNAM INVESTORS FUND
Investments in the Putnam Investors Fund are valued at the redemption price
established by the Trustee on the last business day of the Plan's fiscal year.
The Fund seeks long-term growth of capital by investing primarily in stocks of
well-known, medium-to-large companies that provide opportunities for growth over
the long term. The fund also includes stocks of smaller, rapidly growing
companies. The fund spreads its portfolio across a broad range of industries
such as consumer goods, finance and technology. Income is accumulated and
reinvested in the fund and included in the determination of the share value.
PBHG EMERGING GROWTH FUND
The PBHG Emerging Growth Fund is managed by Pilgrim Baxter & Associates, Ltd.
The fund is constructed and maintained with the objective of providing long-term
capital growth by investing primarily in common stocks of emerging U.S.
companies that have market capitalizations or annual revenues of up to $500
million. Investments in the Fund are valued at the redemption price established
by the Trustee on the last business day of the Plan's fiscal year. Income is
accumulated and reinvested in the fund and included in the determination of the
share value.
BERNSTEIN INTERNATIONAL VALUE PORTFOLIO
The Bernstein International Value Portfolio is constructed and maintained with
the objective of providing long-term capital growth by investing in established
companies in Europe, the Far East, Australia and Canada. Investments in the Fund
are valued at the redemption price established by the Trustee on the last
business day of the Plan's fiscal year. The fund manager invests in stock
believed to be undervalued in relation to assets, dividends, and earning power.
Income is accumulated and reinvested in the fund and included in the
determination of the share value.
THE GEORGE PUTNAM FUND OF BOSTON
The George Putnam Fund of Boston is constructed and maintained with the
objective of providing capital growth and current income by investing in stocks
of large, well-established companies, U.S. government securities, and corporate
bonds. Investments in the Fund are valued at the redemption price established by
the Trustee on the last business day of the Plan's fiscal year. Income is
accumulated and reinvested in the fund and included in the determination of the
share value.
8
<PAGE> 11
The TRW Employee Stock Ownership and Savings Plan
Notes to Financial Statements -- Continued
A. SIGNIFICANT ACCOUNTING POLICIES--CONTINUED
OTHER
Effective January 1, 1998, Putnam Investments began as recordkeeper, trustee,
and investment manager for the plan replacing Bankers Trust and Benefit Services
Corporation. Effective January 2, 1998, all assets held by Bankers Trust were
transferred to Putnam Investments. In conjunction with the change in trustee,
the plan also offered additional investment options.
As of January 1, 1998, participants could place their contributions in a choice
of nine investment options consisting of eight investment funds and TRW Stock.
The eight investment options in addition to TRW Stock are the following: Putnam
S&P 500 Index Portfolio, PRIMCO Stable Value Fund, Putnam Small Company Equity
Portfolio, Putnam Income Fund, PBHG Emerging Growth Fund, Bernstein
International Value Portfolio, Putnam Investors Fund, and the George Putnam Fund
of Boston.
The cost of securities sold is determined by the average cost method for
purposes of determining realized gains and losses.
The preparation of the financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
B. DESCRIPTION OF THE PLAN
The Plan is a defined contribution plan, and is comprised of the TRW Stock Fund,
Putnam S&P 500 Index Portfolio, Primco Stable Value Fund, Putnam Small Company
Equity Portfolio, Putnam Income Fund, PBHG Emerging Growth Fund, Bernstein
International Value Portfolio, Putnam Investors Fund, and the George Putnam Fund
of Boston. Participation in the Plan is available to substantially all domestic
employees of TRW who have been employed for at least three months. The Plan is
governed by the Internal Revenue Code and related legislation.
9
<PAGE> 12
The TRW Employee Stock Ownership and Savings Plan
Notes to Financial Statements -- Continued
B. DESCRIPTION OF THE PLAN--CONTINUED
PARTICIPANT CONTRIBUTIONS
The Plan allows eligible employees to contribute up to 16% of qualifying
compensation on a before-tax basis by way of salary reduction; such
contributions are made in increments of one percent of qualifying compensation
and could not exceed $10,000 in 1999 and 1998. Participants may also elect to
contribute, in increments of one percent, up to 10% of qualifying compensation
on an after-tax basis. The combined contribution cannot exceed 22% of their
qualifying compensation. Participants can make unlimited contribution percentage
changes per month. Annual contributions to a participant's account (including
before-tax, after-tax and TRW matching contributions) and to any other defined
contribution plan is limited to the lesser of $30,000 or 25% of the
participant's annual compensation reduced by the amount of before-tax
contributions.
Participants determine the funds in which to invest their contributions.
Employee contributions may be invested, in multiples of 1% percent, in one or
more of the nine investment funds. Fund elections may be changed at any time.
TRW CONTRIBUTIONS
TRW contributes to the Plan, out of current or accumulated earnings, an amount
equal to 100% of each participant's before-tax contributions without exceeding
three percent of the participant's qualifying compensation. Participants
immediately vest in the TRW contributions. All TRW matching contributions are
invested in the ESOP portion of the TRW Stock Fund. TRW contributions always
remain in the TRW Stock Fund and may not be transferred, except under special
circumstances. TRW contributions may be in the form of cash or treasury or
authorized and unissued shares of TRW Common Stock. TRW Common Stock contributed
is to be valued by any reasonable method selected by TRW.
The amount and type of TRW contributions are summarized as follows:
1999 1998
---------------------------------------
TRW Common Stock $ 44,390,293 $ -
Cash 5,172,310 45,883,426
---------------------------------------
$ 49,562,603 $ 45,883,426
=======================================
10
<PAGE> 13
The TRW Employee Stock Ownership and Savings Plan
Notes to Financial Statements -- Continued
B. DESCRIPTION OF THE PLAN--CONTINUED
WITHDRAWALS AND DISTRIBUTIONS
Upon termination of employment, a participant may elect to receive his or her
account, less the unpaid balance of any loan outstanding, in a single sum except
a participant whose account balance exceeds $5,000 may defer such payments until
he or she reaches age 70. Participants receive the value of their TRW shares in
cash unless they elect to receive shares.
If a participant elects to defer payment of his or her account, the
undistributed account balance remains invested in the Plan. The following is the
total value of the accounts subject to deferred elections (9,700 as of December
31, 1999 and 9,153 as of December 31, 1998) that are included in the net assets
of the funds:
<TABLE>
<CAPTION>
1999 1998
----------------------------------------
<S> <C> <C>
TRW Stock Fund $ 245,534,939 $ 281,922,660
Putnam S&P 500 Index Portfolio 221,742,173 195,134,761
Primco Stable Value Fund 160,664,618 158,805,988
Putnam Small Company Equity Portfolio 34,788,419 27,929,913
Putnam Income Fund 8,180,059 7,356,060
Putnam Investors Fund 34,100,885 14,410,912
PBHG Emerging Growth Fund 8,737,724 2,125,819
Bernstein International Value Portfolio 5,616,426 2,780,150
Loan Fund 4,066,618 13,202,827
George Putnam Fund of Boston 12,251,140 5,929,705
----------------------------------------
$ 735,683,001 $ 709,598,795
========================================
</TABLE>
Effective January 1, 1988, participants who have attained age 55 as of the end
of the preceding fiscal year-end and commenced participation in the Plan at
least ten years prior may elect, within an election period during each of the
succeeding five consecutive plan years, to receive a special ESOP distribution.
The number of shares eligible for the annual election is 50% of the total number
of shares of TRW common stock attributable to TRW matching contributions made
after 1986, less the equivalent number of shares distributed as a result of any
prior ESOP election, as determined on the preceding December 31.
11
<PAGE> 14
The TRW Employee Stock Ownership and Savings Plan
Notes to Financial Statements -- Continued
B. DESCRIPTION OF THE PLAN--CONTINUED
PARTICIPANT LOANS
Participants can borrow from $1,000 to $50,000 (in increments of $100) of their
before-tax contributions, but such borrowings cannot exceed 50% of a
participant's total Plan balance. The interest rate is fixed (prime rate at the
end of the last business day of the preceding quarter plus one percent) and the
repayment period cannot be less than one year or more than five years.
OTHER
Although it has not expressed any intent to do so, TRW reserves the right to
suspend or terminate the Plan. In the event of termination, the amount of each
participant's account may be retained in trust for the benefit of the
participant.
The above description of the Plan provides only general information.
Participants should refer to the Summary Plan Description, which is available
from the Stock Savings Plan's Participant Service Center and the Plan's website,
and annual prospectus for a more complete description of the Plan's provisions.
C. INVESTMENTS
The fair value of individual investments that represent 5% or more of the Plan's
total assets are as follows:
<TABLE>
<CAPTION>
DECEMBER 31
1999 1998
------------------------------------------
<S> <C> <C>
TRW Inc. Common Stock $1,038,999,663 $1,122,060,163
Putnam S&P 500 Index Fund 866,910,952 752,463,764
Primco Stable Value Fund 502,627,561 481,494,878
Putnam Small Company Equity Fund 166,712,922 135,355,152
Putnam Investors Fund 191,053,304 -
</TABLE>
12
<PAGE> 15
The TRW Employee Stock Ownership and Savings Plan
Notes to Financial Statements -- Continued
C. INVESTMENTS--CONTINUED
The net realized gain on disposition of investments is as follows:
TRW STOCK FUND
1999 1998
----------------------------------------
Value realized $ 215,774,251 $ 221,854,445
Average cost 171,505,064 161,140,682
----------------------------------------
NET REALIZED GAIN $ 44,269,187 $ 60,713,763
========================================
PUTNAM S&P 500
INDEX PORTFOLIO
1999 1998
----------------------------------------
Value realized $ 216,178,775 $ 203,616,339
Average cost 179,578,175 187,545,833
----------------------------------------
NET REALIZED GAIN $ 36,600,600 $ 16,070,506
========================================
PUTNAM SMALL COMPANY
EQUITY FUND
1999 1998
----------------------------------------
Value realized $ 53,801,287 $ 73,355,838
Average cost 48,988,491 73,169,020
----------------------------------------
NET REALIZED GAIN $ 4,812,796 $ 186,818
========================================
PUTNAM INCOME FUND
1999 1998
----------------------------------------
Value realized $ 41,114,596 $ 37,671,601
Average cost 42,367,837 37,975,955
----------------------------------------
NET REALIZED LOSS $ (1,253,241) $ (304,354)
========================================
13
<PAGE> 16
The TRW Employee Stock Ownership and Savings Plan
Notes to Financial Statements -- Continued
C. INVESTMENTS--CONTINUED
PBHG EMERGING
GROWTH FUND
1999 1998
----------------------------------------
Value realized $ 23,105,941 $ 11,996,110
Average cost 22,992,752 12,531,724
----------------------------------------
NET REALIZED GAIN/(LOSS) $ 113,189 $ (535,614)
========================================
BERNSTEIN INTERNATIONAL
VALUE PORTFOLIO
1999 1998
----------------------------------------
Value realized $ 15,106,635 $ 11,436,314
Average cost 15,213,791 11,887,275
----------------------------------------
NET REALIZED LOSS $ (107,156) $ (450,961)
========================================
PUTNAM INVESTORS FUND
1999 1998
----------------------------------------
Value realized $ 88,200,192 $ 32,736,343
Average cost 81,863,384 32,690,495
----------------------------------------
NET REALIZED GAIN $ 6,336,808 $ 45,848
========================================
GEORGE PUTNAM
FUND OF BOSTON
1999 1998
----------------------------------------
Value realized $ 24,707,259 $ 11,631,112
Average cost 25,156,206 11,735,784
----------------------------------------
NET REALIZED LOSS $ (448,947) $ (104,672)
========================================
14
<PAGE> 17
The TRW Employee Stock Ownership and Savings Plan
Notes to Financial Statements--Continued
C. INVESTMENTS--CONTINUED
The net unrealized appreciation (depreciation) of investments included in net
assets is as follows:
<TABLE>
<CAPTION>
Putnam Bernstein
TRW Stock Putnam S&P 500 Small Company Putnam Income PBHG Emerging International
Fund Index Portfolio Equity Portfolio Fund Growth Fund Value Portfolio
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Balance at January 1, 1998 $ 595,422,214 $ (13,921) $ - $ - $ - $ -
Increase (decrease) for the (4,347,308) 155,033,320 10,329,010 (960,815) 578,870 (2,068,885)
year
----------------------------------------------------------------------------------------------------
Balance at December 31, 1998 591,074,906 155,019,399 10,329,010 (960,815) 578,870 (2,068,885)
Increase (decrease) for the (117,742,119) 116,951,970 36,310,324 (2,588,932) 14,926,023 4,670,450
year
----------------------------------------------------------------------------------------------------
BALANCE AT DECEMBER 31, 1999 $ 473,332,787 $271,971,369 $ 46,639,334 $ (3,549,747) $ 15,504,893 $ 2,601,565
====================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Putnam Investors George Putnam
Fund Fund of Boston
---------------------------------
<S> <C> <C>
Balance at January 1, 1998 $ - $ -
Increase (decrease) for the 10,093,828 (976,697)
year
--------------------------------
Balance at December 31, 1998 10,093,828 (976,697)
Increase (decrease) for the 35,457,057 (5,538,949)
year
--------------------------------
BALANCE AT DECEMBER 31, 1999 $ 45,550,885 $(6,515,646)
================================
</TABLE>
15
<PAGE> 18
The TRW Employee Stock Ownership and Savings Plan
Notes to Financial Statements--Continued
C. INVESTMENTS--CONTINUED
On a revalued basis, which is in accordance with Department of Labor Form 5500
requirements, the realized and unrealized gains (losses) are not available at
the date of the Report of Independent Auditors. A separate schedule will be
included in the Form 5500 when filed. For 1998, unrealized appreciation
calculated on a revalued basis was $41,088,540 and net realized gain calculated
on a revalued basis was $196,964,373.
D. ADMINISTRATIVE EXPENSES
Generally, trustee and custodian fees, investment manager fees, brokerage fees,
and other fund-related expenses are charged back to the funds for which the
expenses are incurred. Brokerage fees charged to a participant's TRW Stock Fund
account are based on that Participant's purchase or sale of TRW common stock.
The charges to audit the SSP, the administrative expenses of operating the Plan,
and any other charges that cannot be directly related to a specific fund will be
charged back to the funds on a quarterly basis in proportion to the ratio of the
net asset value of each fund to the value of all funds invested in the SSP as of
the previous quarter-end.
E. FEDERAL INCOME TAX STATUS OF THE PLAN
The Plan has received a determination letter from the Internal Revenue Service
dated May 24, 1995, stating that the Plan is qualified under Section 401(a) of
the Internal Revenue Code (the "Code") and, therefore, the related trust is
exempt from taxation. Once qualified, the Plan is required to operate in
conformity with the Code to maintain its qualification. The Plan Administrator
believes the Plan is being operated in compliance with the applicable
requirements of the Code and, therefore, believes that the Plan is qualified and
the related trust is tax exempt.
F. TRANSACTIONS WITH PARTIES-IN-INTEREST
Party-in-interest transactions include the purchase and sale of short-term
investments managed by the Plan's Trustee, Putnam Investments and the Plan's
former Trustee, Bankers Trust Company.
Putnam Investments managed assets of the Plan of approximately $1,323,343,488
and $1,044,569,035. There were no trustee fees paid in cash to Putnam in 1999.
Putnam received $61,217 in 1998.
There were no party-in-interest transactions which were prohibited under
Department of Labor Regulations.
16
<PAGE> 19
The TRW Employee Stock Ownership and Savings Plan
Notes to Financial Statements--Continued
G. NUMBER OF PARTICIPANTS BY FUND (UNAUDITED)
The summary below sets forth the number of contributing participants by their
current investment option(s):
<TABLE>
<CAPTION>
DECEMBER 31
1999 1998
--------------------------------
<S> <C> <C>
TRW Stock Fund 19,994 20,107
Putnam S&P 500 Index Portfolio 25,209 23,506
Primco Stable Value Fund 17,136 17,329
Putnam Small Company Equity Portfolio 13,204 12,497
Putnam Income Fund 5,849 5,827
Putnam Investors Fund 11,183 7,958
PBHG Emerging Growth Fund 6,969 4,666
Bernstein International Value Portfolio 4,560 3,262
George Putnam Fund of Boston 5,430 4,680
</TABLE>
The total number of participants in the Plan is less than the sum of the number
of employees shown above because many are participating in more than one fund.
17
<PAGE> 20
The TRW Employee Stock Ownership and Savings Plan
Notes to Financial Statements--Continued
H. TRANSFER OF ASSETS FROM OTHER PLANS
On December 24, 1997, TRW purchased BDM International, Inc. (BDM). BDM had an
existing 401(k) plan which was merged into the Plan effective January 1, 1999.
The transfer of BDM's assets of $117,196,248 is shown on the financial
statements as "Transfer from Other Plan."
In addition, forfeitures of approximately $493,000 within the former BDM Plan
were transferred at the time of conversion. These amounts were used to offset
TRW (employer) contributions during 1999.
Employee rollover contributions of approximately $7,277,585 were made in 1999
from other plans. These contribution amounts are contained in the contribution
amounts for each of the respective funds.
18
<PAGE> 21
The TRW Employee Stock Ownership and Savings Plan
EIN: 34-0575430 Plan: 027
Line 27a--Schedule of Assets Held for Investment Purposes
December 31, 1999
<TABLE>
<CAPTION>
Number of BOOK MARKET
Shares Description VALUE VALUE
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCK
20,004,582 *TRW Stock Fund $ 565,666,876 $ 1,038,999,663
GUARANTEED INVESTMENT CONTRACTS
Security Backed Investments
Primco Group Trust
Beta Fund--PRIMCO:
Continental Assurance Co., Contract 63005575,
due February 1,2006, 5.70% 18,143,419 18,143,419
Gamma Fund--PRIMCO:
Chase Manhattan Bank, Contract 401743-G, due
December 30, 2003, 6.62% 26,250,976 26,250,976
Epsilon Fund--PRIMCO:
Monumental Life Ins. Co., Contract 00212TR-1,
due December 1, 2000, 6.48% 10,025,973 10,025,973
Theta Fund--PRIMCO:
Bankers Trust (Del) BASIC, Contract
97-892THT, due December 30, 2002, 6.06%
59,632,049 59,632,049
Kappa Fund--Putnam:
Continental Assurance Co., Contract
25719-101, due June 30, 2004, 5.90% 24,303,953 24,303,953
Omicron Fund--PRIMCO:
Caisse des Depots (CDC), Contract
1115-01, due March 30, 2000, 6.47% 5,295,593 5,295,593
-------------------------------------------
143,651,963 143,651,963
</TABLE>
19
<PAGE> 22
The TRW Employee Stock Ownership and Savings Plan
EIN: 34-0575430 Plan: 027
Line 27a--Schedule of Assets Held for Investment Purposes--Continued
<TABLE>
<CAPTION>
Number of Book Market
Shares Description Value Value
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
GUARANTEED INVESTMENT CONTRACTS--CONTINUED
Separate Accounts
Aetna Life Ins. & Ann. Co.:
Contract 14612, due December 30, 2002, 6.45% 28,534,932 28,534,932
Allstate Life Ins. Co.:
Contract 31053, due July 1, 2002, 5.90% 6,088,005 6,088,005
John Hancock Mutual Life:
Contract 8712, due June 30, 2003, 6.6% 5,968,053 5,968,053
Contract 7441, due May 1, 2007, 7.05% 44,810,972 44,810,972
Metropolitan Life Ins. Co.:
Contract 24844, due December 30, 2002, 5.8% 40,482,950 40,482,950
Prudential Ins. Co. of Amer.:
Contract 6581-1, due June 14, 2001, 15.18% 24,666 24,666
Contract 6661-2, due September 15, 2001, 10.71% 3,174,655 3,174,655
Contract 6702-3, due November 20, 2000, 8.38% 147,569 147,569
-------------------------------------------
129,231,802 129,231,802
Synthetics
Continental Assurance Co.:
Contract 63005751, due April 2, 2001, 6.33% 13,375,989 13,375,989
Monumental Life Ins. Co.:
Contract 00090TR, due April 10, 2007, 7.25% 45,092,044 45,092,044
Rabobank Nederland:
Contract TRW069701, due July 15, 2003, 6.75% 5,961,649 5,961,649
Contract TRW079701, due October 21, 2002, 6.88% 4,925,453 4,925,453
</TABLE>
20
<PAGE> 23
The TRW Employee Stock Ownership and Savings Plan
EIN: 34-0575430 Plan: 027
Line 27a--Schedule of Assets Held for Investment Purposes--Continued
<TABLE>
<CAPTION>
Number of Book Market
Shares Description Value Value
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
GUARANTEED INVESTMENT CONTRACTS--CONTINUED
Synthetic Accounts--Continued
Contract TRW099601, due September 25, 2003, 7.11% 5,713,784 5,713,784
Contract TRW109501, due July 2, 2001, 6.19% 4,973,862 4,973,862
State Street Bank & Trust:
Contract 98149, due January 20, 2005, 5.70% 79,578,798 79,578,798
-------------------------------------------
159,621,579 159,621,579
Non-Participating Synthetics
Caisse des Depots (CDC):
Contract 115-05, due June 30, 2000, 7.48% 3,862,291 3,862,291
Contract 115-06, due July 2, 2001, 6.76% 2,977,096 2,977,096
Contract 115-07, due December 12, 2002, 6.23% 9,981,990 9,981,990
-------------------------------------------
16,821,377 16,821,377
-------------------------------------------
Sub-Total 449,326,721 449,326,721
General Account Investments
Variable Rate & Fixed Term
Jackson National Life:
Contract 1152-1, due November 27, 2000, 6.28% 10,006,677 10,006,677
John Hancock Mutual Life:
Contract 7314-1, due December 2, 2002, 6.12% 6,164,816 6,164,816
Contract 7839, due March 1, 2000, 5.78% 10,000,000 10,000,000
-------------------------------------------
26,171,493 26,171,493
Variable Rate & Variable Term
Monumental Life Ins. Co.:
Contract BDA185ST1, due March 30, 2000, 5.97% 7,972,987 7,972,987
-------------------------------------------
7,972,987 7,972,987
-------------------------------------------
Sub-Total 34,144,480 34,144,480
</TABLE>
21
<PAGE> 24
The TRW Employee Stock Ownership and Savings Plan
EIN: 34-0575430 Plan: 027
Line 27a--Schedule of Assets Held for Investment Purposes--Continued
<TABLE>
<CAPTION>
Number of Book Market
Shares Description Value Value
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
GUARANTEED INVESTMENT CONTRACTS--CONTINUED
Cash & Equivalents
Putnam Fiduciary Trust:
Contract 100232, due January 1, 2000, 5.83% 19,156,360 19,156,360
-------------------------------------------
19,156,360 19,156,360
-------------------------------------------
Total Guaranteed Investment Contracts 502,627,561 502,627,561
MUTUAL FUNDS
56,069,007 *Putnam S&P 500 Index Portfolio 594,939,583 866,910,952
11,742,235 *Putnam Small Company Equity Portfolio 120,073,588 166,712,922
1,599,012 PBHG Emerging Growth Fund 39,261,255 54,766,148
1,615,946 Bernstein International Value Portfolio 31,737,305 34,338,870
9,924,847 *Putnam Investors Fund 145,502,419 191,053,304
3,417,272 *The George Putnam Fund of Boston 62,251,344 55,735,698
6,728,936 *Putnam Income Fund 46,480,359 42,930,612
*Participant loans - 61,552,113
-------------------------------------------
TOTAL INVESTMENTS $ 2,108,540,290 $ 3,015,627,843
===========================================
</TABLE>
* Indicates party-in-interest.
22
<PAGE> 25
The TRW Employee Stock Ownership and Stock Savings Plan
EIN: 34-0575430 Plan: 027
Line 27d--Schedule of Reportable Transactions
Year Ended December 31, 1999
<TABLE>
<CAPTION>
Purchase Selling Cost of
Identity of Party Involved Description of Assets Price Price Asset
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SERIES OF TRANSACTIONS IN EXCESS OF 5% OF THE FAIR VALUE OF PLAN ASSETS
Putnam Putnam S&P 500 Index Portfolio
667 Purchases $ 169,374,087 $ 169,374,087
920 Sales $ 216,178,787 179,578,187
Putnam TRW Stock Fund
658 Purchases 219,431,616 219,431,616
1,156 Sales 232,754,141 171,485,736
Putnam Putnam Investors Fund
642 Purchases 120,633,899 120,633,899
865 Sales 88,200,188 81,863,380
</TABLE>
<TABLE>
<CAPTION>
Fair Value
of Asset on Net Gain
Identity of Party Involved Description of Assets Transaction Date (Loss)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
SERIES OF TRANSACTIONS IN EXCESS OF 5% OF THE FAIR VALUE OF PLAN ASSETS
Putnam Putnam S&P 500 Index Portfolio
667 Purchases $ 169,374,087
920 Sales 216,178,787 $ 36,600,600
Putnam TRW Stock Fund
658 Purchases 219,431,616
1,156 Sales 232,754,141 61,268,405
Putnam Putnam Investors Fund
642 Purchases 120,633,899
865 Sales 88,200,188 6,336,808
</TABLE>
23
<PAGE> 26
SIGNATURES
The Plan. Pursuant to requirements of the Securities Exchange Act of
1934, the Board of Administration of the Plan has duly caused this annual report
to be signed on its behalf by the undersigned hereunto duly authorized.
The TRW Employee Stock Ownership
and Savings Plan
Date: May 4, 2000 By: /s/ Kathleen A. Weigand
--------------------------
Kathleen A. Weigand
Attorney-in-fact
24
<PAGE> 27
EXHIBIT INDEX
EXHIBIT EXHIBIT
NUMBER DESCRIPTION
- ------ ----------------------------
23 Consent of Ernst & Young LLP
24 Power of Attorney
25
<PAGE> 1
EXHIBIT 23
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in TRW Inc.'s Registration
Statement No. 333-03973 on Form S-8 pertaining to The TRW Employee Stock
Ownership and Savings Plan and the related prospectus of our report dated April
27, 2000 with respect to the financial statements of The TRW Employee Stock
Ownership and Savings Plan for the fiscal year ended December 31, 1999 included
in this Annual Report on Form 11-K.
ERNST & YOUNG LLP
Cleveland, Ohio
May 4, 2000
<PAGE> 1
EXHIBIT 24
POWER OF ATTORNEY
THE UNDERSIGNED members of the Board of Administration of the TRW
Employee Stock Ownership and Savings Plan (the "Plan") hereby appoint D. B.
Goldston, W. B. Lawrence, D. F. Menz, K. C. Syrvalin, K. A. Weigand and J. L.
Manning, Jr., and each of them, as attorneys for the Plan and for the
undersigned, with full power of substitution and resubstitution, for and in the
name, place and stead of the Plan and the undersigned, to prepare or cause to be
prepared, to execute and file with the Securities and Exchange Commission,
Washington, D. C. (the "Commission") an Annual Report on Form 11-K for the
fiscal year ended December 31, 1999, or information in lieu thereof, any
transition reports under the Securities Exchange Act of 1934 (the "Exchange
Act"), and any and all amendments and exhibits to such annual report or
transition reports, with full power and authority to take or cause to be taken
all other actions deemed necessary or appropriate to effect the filing of the
annual report, or information in lieu thereof, the transition reports and any
and all amendments to such reports, under the Exchange Act.
EXECUTED on the dates set forth below.
/s/ Linda J. Croes /s/ Kathy Lazar
--------------------------- -----------------------------
Linda J. Croes Kathy P. Lazar
May 4, 2000 May 4, 2000
/s/ Donna Kasle /s/ Rose Malinak
--------------------------- -----------------------------
Donna Kasle Rose Malinak
May 4, 2000 May 4, 2000
/s/ Ann E. Killian /s/ Judith A. Williams
--------------------------- -----------------------------
Ann E. Killian Judith A. Williams
May 4, 2000 May 4, 2000
