<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K/A
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
<TABLE>
<S> <C>
FOR THE FISCAL YEAR ENDED COMMISSION FILE NUMBER:
December 31, 1993 1-5237
</TABLE>
E-SYSTEMS, INC.
Registrant's telephone number, including area code:
(214) 661-1000
AMENDMENT NO. 1
The undersigned registrant hereby amends the following items, financial
statements, exhibits or other portions of its 1993 Annual Report on Form 10-K as
set forth herein.
Exhibit No. 99: -- Report on Form 11-K for the fiscal year ended 1993 for
the E-Systems, Inc. Tax Advantaged Capital Accumulation Plan.
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this amendment to be signed on its behalf by the
undersigned, thereunto duly authorized.
E-SYSTEMS, INC.
(Registrant)
By: ______/s/_JAMES W. CROWLEY________
James W. Crowley
VICE PRESIDENT, SECRETARY
AND GENERAL COUNSEL
DATE: April 29, 1994
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
<TABLE>
<C> <S>
ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1993
</TABLE>
A. FULL TITLE OF THE PLAN AND ADDRESS OF THE PLAN, IF DIFFERENT FROM THAT OF
THE ISSUER NAMED BELOW:
E-SYSTEMS, INC. TAX ADVANTAGED CAPITAL ACCUMULATION PLAN
B. NAME OF ISSUER OF SECURITIES HELD PURSUANT TO THE PLAN AND ADDRESS OF ITS
PRINCIPAL EXECUTIVE OFFICE:
E-SYSTEMS, INC.
6250 LBJ FREEWAY
P.O. BOX 660248
DALLAS, TEXAS 75266-0248
<PAGE>
E-SYSTEMS, INC. TAX ADVANTAGED CAPITAL ACCUMULATION PLAN
AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 1993
<TABLE>
<CAPTION>
PAGE
-----------
<S> <C>
AUDITED FINANCIAL STATEMENTS
Report of Ernst & Young, Independent Auditors.......................................................... 3
Statements of Net Assets Available for Benefits........................................................ 4
Statements of Changes in Net Assets Available for Benefits............................................. 5
Notes to Financial Statements.......................................................................... 6
SCHEDULES
Schedule of Assets Held for Investment................................................................. 12
Schedule of Transactions or Series of Transactions in Excess of 5% of the Current
Value of Plan Assets.................................................................................. 13
EXHIBIT
Consent of Independent Auditors........................................................................ 15
</TABLE>
2
<PAGE>
REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS
The Administrative Committee
E-Systems, Inc. Tax Advantaged
Capital Accumulation Plan
We have audited the accompanying statements of net assets available for
benefits of the E-Systems, Inc. Tax Advantaged Capital Accumulation Plan
(established as an amendment to the E-Systems, Inc. Employee Stock Ownership
Plan) as of December 31, 1993 and 1992, and the related statements of changes in
net assets available for benefits 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 generally accepted auditing
standards. 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 Plan at
December 31, 1993 and 1992, and the changes in its net assets available for
benefits for the years then ended, in conformity with generally accepted
accounting principles.
Our audits were made for the purpose of forming an opinion on the (basic)
financial statements taken as a whole. The accompanying supplemental schedules
of assets held for investment as of December 31, 1993, and transactions or
series of transactions in excess of 5 percent of the current value of plan
assets 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 supplemental schedules have been
subjected to the auditing procedures applied in our audit of the 1993 financial
statements and, in our opinion, are fairly stated in all material respects in
relation to the 1993 (basic) financial statements taken as a whole.
Dallas, Texas
April 4, 1994
3
<PAGE>
E-SYSTEMS, INC. TAX ADVANTAGED CAPITAL ACCUMULATION PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
ASSETS DECEMBER 31
----------------------------------
1993 1992
---------------- ----------------
<S> <C> <C>
Investments--at fair value--Notes A and C.................................. $ 168,674,834 $ 146,957,671
Participant loans receivable............................................... 7,241,180 6,305,729
---------------- ----------------
Total assets and net assets available for benefits..................... $ 175,916,014 $ 153,263,400
---------------- ----------------
---------------- ----------------
</TABLE>
See notes to financial statements.
4
<PAGE>
E-SYSTEMS, INC. TAX ADVANTAGED CAPITAL ACCUMULATION PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
----------------------------------
ADDITIONS 1993 1992
- - ------------------------------------------------------------------------------ ---------------- ----------------
<S> <C> <C>
Investment income:
Dividends................................................................. $ 8,766,770 $ 4,886,106
Interest--Note B.......................................................... 3,152,473 3,223,131
---------------- ----------------
11,919,243 8,109,237
Loan fund interest--Note B.................................................... 469,329 445,637
Contributions--Note B......................................................... 25,401,629 24,369,846
---------------- ----------------
37,790,201 32,924,720
<CAPTION>
DEDUCTIONS
- - ------------------------------------------------------------------------------
<S> <C> <C>
Administrative expenses--Note B............................................... 173,264 169,569
Benefits paid................................................................. 20,069,615 10,095,736
---------------- ----------------
20,242,879 10,265,305
---------------- ----------------
17,547,322 22,659,415
Net realized and unrealized appreciation (depreciation) in fair value of
investments--Note A.......................................................... 5,105,292 5,736,046
---------------- ----------------
Net increases......................................................... 22,652,614 28,395,461
Net assets available for benefits at beginning of year........................ 153,263,400 124,867,939
---------------- ----------------
Net assets available for benefits at end of year.............................. $ 175,916,014 $ 153,263,400
---------------- ----------------
---------------- ----------------
</TABLE>
See notes to financial statements.
5
<PAGE>
E-SYSTEMS, INC. TAX ADVANTAGED CAPITAL ACCUMULATION PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1993
NOTE A--SIGNIFICANT ACCOUNTING POLICIES
Investments are stated at fair value, which is based on published market
prices on the last business day of the year.
The investment in the Variable Rate Investment Fund (formerly the Guaranteed
Return Investment Plan) is valued at contract value as estimated by the various
insurance companies. Contract value represents contributions made under the
contract, plus interest at the contract rate, less funds used to pay benefits
directly to participants.
The change in the difference between fair value and the cost of investments
(including investments bought, sold, as well as held during the year) is
reflected in the financial statements as net realized and unrealized
appreciation or depreciation.
NOTE B--DESCRIPTION OF THE PLAN
PURPOSE AND ORGANIZATION. The E-Systems, Inc. Tax Advantaged Capital
Accumulation Plan ("the Plan") became effective January 1, 1984 as an amendment
to the E-Systems, Inc. Employee Stock Ownership Plan. Substantially all
employees of E-Systems, Inc. (the "Company") and its subsidiaries who are not
employed under collective bargaining agreements, except those under collective
bargaining agreements in the ECI and Garland divisions, are eligible to
participate in the Plan, with the exception of non-corporate employees of
Serv-Air, Inc. and employees of Engineering Research Associates, Inc. and
Advanced Video Products. The Plan was established to allow eligible employees to
elect to receive reduced direct compensation from the Company in exchange for
contributions to the Plan by the Company on behalf of each such employee. There
are no employer contributions to the Plan.
EMPLOYEE CONTRIBUTIONS AND INVESTMENT OPTIONS. Employees may contribute up
to 18% of their annual base compensation to one or more of the seven investment
options described below. Employee contributions to the Plan were subject to a
$8,994 annual limit during 1993 and will be subject to a $9,240 annual limit in
1994 as required by the Tax Reform Act of 1986. Participants vest immediately in
the Plan; accordingly, there are no forfeitures. The investment options are as
follows:
The E-Systems, Inc. Securities Fund invests solely in the Company's
Common Stock, $1.00 par value.
The Variable Rate Investment Fund invests solely in guaranteed
investment contracts ("GIC") of insurance companies. Interest rates earned
on GIC's will be guaranteed for certain time periods and renegotiated
periodically. The 1990 agreement is with The Prudential Asset Management
Group which provides for an annual guaranteed effective rate of return of
8.12% for amounts contributed between January 1, 1990 and December 31, 1990
and expired December 31, 1992. Effective January 1, 1991, the Plan entered
into a 1991 GIC agreement with Provident National Assurance Company which
provides for an annual guaranteed effective rate of return of 7.71% for
amounts contributed between January 1, 1991 and December 31, 1991. This
agreement expired December 31, 1993. Effective December 31, 1991, all
contributions are made to the Vanguard Fiduciary Trust Company Variable Rate
Guaranteed Investment Contract Trust (the "Trust"). The investment objective
of the Trust is to seek the highest level of current income consistent with
safety and stability of principal by investing primarily in investment
contracts issued by insurance companies, investment contracts issued by
domestic commercial banks or U.S. branches of foreign banks, and other
similar types of fixed principal investments. The Trust may also hold no
more than 15% of its assets in short-term obligations, money market funds,
or federally insured deposits.
6
<PAGE>
E-SYSTEMS, INC. TAX ADVANTAGED CAPITAL ACCUMULATION PLAN
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
NOTE B--DESCRIPTION OF THE PLAN--(CONTINUED)
The Vanguard/Morgan Growth Fund invests participants' contributions
primarily in common stocks of corporations with either established growth
patterns, emerging growth potential or cyclical growth patterns.
The Windsor Fund invests participants' contributions in a portfolio of
common stocks, the objective of which is primarily long-term growth and,
secondly, current income through dividends.
The Vanguard Money Market Reserves Prime Portfolio invests participants'
contributions in a portfolio of high quality money market instruments that
mature in one year or less.
The Vanguard Fixed Income Securities Fund Short-Term Bond Portfolio
invests participants' contributions in investment grade bonds with
maturities from less than one up to four years including United States
Treasury and agency obligations, the objective of which is primarily
conservation of principal and secondly, to maximize current income.
The Vanguard Index Trust 500 Portfolio invests participants'
contributions in a portfolio of stocks designed to match the performance of
Standard & Poor's 500 Composite Stock Price Index.
PLAN BORROWING PROVISIONS. Effective January 1, 1989, participants were
given the option of borrowing from their Plan account. Borrowings from the Plan
bear interest at the prime rate as published in the Wall Street Journal on the
last business day of each calendar quarter plus one percentage point. Such
interest rate is effective for all borrowings during the subsequent quarter. All
borrowings become part of the Loan Fund. Interest charged on borrowings is
credited to the borrowing participant's account and is shown separately as loan
fund interest in the Statements of Changes in Net Assets Available for Benefits.
PLAN TRANSFER PROVISIONS. Participants are permitted to make unlimited
transfers among investment options with the exception of transfers into and out
of the Variable Rate Investment Fund which are restricted as to the number of
such transfers that can be made during a year. Additionally, transfers out of
the Variable Rate Investment Fund are restricted to transfers into an equity
fund for a minimum of 90 days before such funds can be transferred to other Plan
investment options. A detailed description of restrictions involving transfers
into and out of the Variable Rate Investment Fund is contained in the summary
plan description, "Tax-Advantaged Capital Accumulation Plan (T-CAP)", provided
to plan participants.
EXPENSES OF THE PLAN. The Plan is administered by a Committee appointed by
the Board of Directors of the Company. The expenses incurred by the Plan and the
Administrative Committee in operating the Plan are paid from the Plan assets. To
the extent reasonably practicable, expenses are allocated to the respective fund
to which they relate.
BENEFITS PAID. All distributions under the Plan, except distributions of
the Company's Common Stock from the E-Systems, Inc. Securities Fund, are made in
cash either to the participant or to an eligible retirement plan specified by
the participant, effective in 1993. Participants receiving a distribution from
the E-Systems, Inc. Securities Fund may elect to take the distribution in cash
or in shares of the Company's Common Stock. Participants are eligible for
distributions upon termination, retirement, disability or hardship (as
determined by the Administrative Committee).
PLAN TERMINATION. If the plan is terminated for any reason, the assets are
to be allocated to the participants. The value of all accounts of each
participant is then to be distributed as directed by the Committee. In no event
may any of the Company's securities held in trust be distributed to anyone other
than participants and their beneficiaries.
7
<PAGE>
E-SYSTEMS, INC. TAX ADVANTAGED CAPITAL ACCUMULATION PLAN
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
NOTE C--INVESTMENTS
The Plan held the following investments at December 31, 1993 and 1992
(Investments that represent 5% or more of the Plan's net assets are separately
identified):
<TABLE>
<CAPTION>
FAIR VALUE AT
DECEMBER 31
----------------------------------
1993 1992
---------------- ----------------
<S> <C> <C>
E-Systems, Inc. Securities Fund:
E-Systems, Inc. Common Stock.............................................. $ 10,281,707 $ 9,980,321
Vanguard Money Market Reserves Prime Portfolio............................ 59,829 48,620
---------------- ----------------
10,341,536 10,028,941
Guaranteed Return Investment Contracts:
Provident National Assurance Company...................................... -- 7,116,974
Vanguard Investment Trust................................................... 36,064,115 27,968,949
Vanguard/Morgan Growth Fund................................................. 22,528,312 21,022,939
The Windsor Fund............................................................ 71,168,543 55,161,779
Vanguard Money Market Reserves Prime Portfolio.............................. 14,484,631 14,539,546
Vanguard Fixed Income Securities Fund Short-Term Bond Portfolio............. 7,529,311 6,658,048
Vanguard Index Trust 500 Portfolio.......................................... 6,558,386 4,460,495
---------------- ----------------
TOTAL INVESTMENTS....................................................... $ 168,674,834 $ 146,957,671
---------------- ----------------
---------------- ----------------
</TABLE>
In connection with the appointment of Vanguard Fiduciary Trust Company as
Plan Trustee (Note G), the net assets of the E-Systems, Inc. Securities Fund
(the "Fund") were converted to units by assigning an arbitrary unit value per
share of $10.00 at the date fund assets were transferred to Vanguard. At
December 31, 1993 and 1992, there were 727,220 and 742,534 units, respectively,
of the fund outstanding having a unit value per share of $14.12 and $13.41,
respectively. The trustee calculates the unit value of the fund on a daily
basis. The unit value per share ranged from $11.82 to $15.82 during the period
from January 1, 1993 to December 31, 1993 and from $10.37 to $13.53 during the
period from January 1, 1992 to December 31, 1992.
NOTE D--INCOME TAXES
The Internal Revenue Service has ruled that the amendment to the E-Systems,
Inc. Employee Stock Ownership Plan which established the Plan qualifies under
Section 401(k) of the Internal Revenue Code and, therefore the Plan is not
subject to tax under present Federal income tax laws.
NOTE E--EMPLOYEE INCOME TAX EFFECTS
Wage deferrals authorized by Plan participants are excluded from the current
taxable income of participants. In general, a participant or beneficiary who
receives a distribution from the Plan is taxed in the year of receipt on the
total fair value of the distribution received. The amount included as taxable
income upon a distribution from the Plan, in the event of death, disability,
retirement or other termination of employment, or hardship is generally taxed as
ordinary income under provisions relating to annuities. Under certain
conditions, a distribution may qualify as a lump sum distribution and may
therefore be taxed under special five-year or ten-year averaging methods. Any of
the Company's Common Stock included in the lump sum distribution is taxed at the
lower of the Plan's cost or fair value.
A participant who receives a distribution equal to the total amount in his
account for any reason other than financial hardship is not subject to tax on
any portion of the distribution he receives that is transferred pursuant to the
"rollover" provisions of the Code to an Individual Retirement Account or
8
<PAGE>
E-SYSTEMS, INC. TAX ADVANTAGED CAPITAL ACCUMULATION PLAN
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
NOTE E--EMPLOYEE INCOME TAX EFFECTS--(CONTINUED)
to another qualified retirement plan. In the event a participant elects to make
a partial rollover, the amount not rolled over will be taxed as ordinary income
and will not be eligible for the special five-year or ten-year averaging methods
previously mentioned.
NOTE F--TRANSACTIONS WITH PARTIES-IN-INTEREST
During the years ended December 31, 1993 and 1992, the Plan received
dividend income of $243,927 and $227,838, respectively, from E-Systems, Inc.,
and remitted $31,530 and $31,798, respectively to E-Systems, Inc. for
administrative expenses.
Fees paid during the year for legal, accounting, and other services rendered
by parties-in-interest were based on customary and reasonable rates for such
services.
Vanguard Fiduciary Trust Company is trustee of the Plan, all transactions
involving The Vanguard Group are considered party-in-interest transactions. All
such transactions have been disclosed in Note G.
9
<PAGE>
E-SYSTEMS, INC. TAX ADVANTAGED CAPITAL ACCUMULATION PLAN
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
NOTE G--COMBINING STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1993:
<TABLE>
<CAPTION>
VANGUARD
E-SYSTEMS, VANGUARD/ MONEY MARKET
INC. VARIABLE RATE MORGAN THE RESERVES
SECURITIES INVESTMENT GROWTH WINDSOR PRIME
TOTAL FUND FUND FUND FUND PORTFOLIO
-------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS
- - ------------------------------
Investment Income:
Dividends................. $ 8,766,770 $ 243,927 $ -- $ 2,550,534 $ 5,818,126 $ --
Interest.................. 3,152,473 -- 2,238,318 -- -- 450,009
-------------- ------------- ------------- ------------- ------------- -------------
11,919,243 243,927 2,238,318 2,550,534 5,818,126 450,009
Loan fund interest............ 469,329 -- -- -- -- --
Contributions................. 25,401,629 1,556,946 4,815,722 3,540,864 8,898,275 2,851,460
Transfers from other
funds........................ 43,901,133 4,213,043 8,754,351 2,880,973 10,638,764 8,840,733
-------------- ------------- ------------- ------------- ------------- -------------
69,772,091 5,769,989 13,570,073 6,421,837 19,537,039 11,692,193
DEDUCTIONS
- - ------------------------------
Administrative expenses....... 173,264 18,552 15,946 26,452 68,910 23,875
Benefits paid................. 20,069,615 857,737 5,604,882 2,633,301 6,910,449 2,010,750
Transfers to other funds...... 43,901,133 5,356,200 9,209,371 3,800,685 7,587,742 10,162,492
-------------- ------------- ------------- ------------- ------------- -------------
64,144,012 6,232,489 14,830,199 6,460,438 14,567,101 12,197,117
-------------- ------------- ------------- ------------- ------------- -------------
Net realized and unrealized
appreciation (depreciation)
in fair value of
investments.................. 5,105,292 531,168 -- (1,006,560) 5,218,700 --
-------------- ------------- ------------- ------------- ------------- -------------
Net increases.........
Net assets available for
benefits at beginning of
year......................... 153,263,400 10,028,941 35,085,923 21,022,939 55,161,779 14,539,546
-------------- ------------- ------------- ------------- ------------- -------------
Net assets available for
benefits at end of year...... $ 175,916,014 $ 10,341,536 $ 36,064,115 $ 22,528,312 $ 71,168,543 $ 14,484,631
-------------- ------------- ------------- ------------- ------------- -------------
-------------- ------------- ------------- ------------- ------------- -------------
<CAPTION>
VANGUARD
FIXED
INCOME
SECURITIES
FUND VANGUARD
SHORT-TERM INDEX TRUST
BOND 500 LOAN
PORTFOLIO PORTFOLIO FUND
------------ ------------ ------------
<S> <C> <C> <C>
ADDITIONS
- - ------------------------------
Investment Income:
Dividends................. $ -- $ 154,183 $ --
Interest.................. 464,146 -- --
------------ ------------ ------------
464,146 154,183 --
Loan fund interest............ -- -- 469,329
Contributions................. 1,565,855 2,172,507 --
Transfers from other
funds........................ 2,141,958 1,964,522 4,466,789
------------ ------------ ------------
3,707,813 4,137,029 4,936,118
DEDUCTIONS
- - ------------------------------
Administrative expenses....... 9,012 10,517 --
Benefits paid................. 1,091,125 559,865 401,506
Transfers to other funds...... 2,212,415 1,973,067 3,599,161
------------ ------------ ------------
3,312,552 2,543,449 4,000,667
------------ ------------ ------------
Net realized and unrealized
appreciation (depreciation)
in fair value of
investments.................. 11,856 350,128 --
------------ ------------ ------------
Net increases.........
Net assets available for
benefits at beginning of
year......................... 6,658,048 4,460,495 6,305,729
------------ ------------ ------------
Net assets available for
benefits at end of year...... $ 7,529,311 $ 6,558,386 $ 7,241,180
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
10
<PAGE>
E-SYSTEMS, INC. TAX ADVANTAGED CAPITAL ACCUMULATION PLAN
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
NOTE G--COMBINING STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR
BENEFITS--(CONTINUED)
YEAR ENDED DECEMBER 31, 1992:
<TABLE>
<CAPTION>
VANGUARD
E-SYSTEMS, VANGUARD/ MONEY MARKET
INC. VARIABLE RATE MORGAN THE RESERVES
SECURITIES INVESTMENT GROWTH WINDSOR PRIME
TOTAL FUND FUND FUND FUND PORTFOLIO
-------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS
- - ------------------------------
Investment Income:
Dividends................. $ 4,886,106 $ 227,838 $ -- $ 1,087,056 $ 3,469,250 $ --
Interest.................. 3,223,131 3,171 2,219,607 -- -- 523,901
-------------- ------------- ------------- ------------- ------------- -------------
8,109,237 231,009 2,219,607 1,087,056 3,469,250 523,901
Loan fund interest............ 445,637 -- -- -- -- --
Contributions................. 24,369,846 1,499,130 5,465,754 3,199,541 7,735,115 3,526,585
Transfers from other funds.... 41,440,058 4,380,148 7,435,148 3,922,200 5,722,905 9,001,178
-------------- ------------- ------------- ------------- ------------- -------------
74,364,778 6,110,287 15,120,509 8,208,797 16,927,270 13,051,664
DEDUCTIONS
- - ------------------------------
Administrative expenses....... 169,569 18,734 24,508 25,437 61,606 26,740
Benefits paid................. 10,095,736 649,702 3,048,208 1,223,515 3,028,349 1,119,032
Transfers to other funds...... 41,440 5,136,151 5,886,404 4,345,090 7,292,666 11,593,151
-------------- ------------- ------------- ------------- ------------- -------------
51,705,363 5,804,587 8,959,120 5,594,042 10,382,621 12,738,923
-------------- ------------- ------------- ------------- ------------- -------------
22,659,415 305,700 6,161,389 2,614,755 6,544,649 312,741
Net realized and unrealized
(depreciation) appreciation
in fair value of
investments................. 5,736,046 909,835 -- 713,742 4,017,365 --
-------------- ------------- ------------- ------------- ------------- -------------
Net increases......... 28,395,461 1,215,535 6,161,389 3,328,497 10,562,014 312,741
Net assets available for
benefits at beginning of
year........................ 124,867,939 8,813,406 28,924,534 17,694,442 44,599,765 14,226,805
-------------- ------------- ------------- ------------- ------------- -------------
Net assets available for
benefits at end of year..... $ 153,263,400 $ 10,028,941 $ 35,085,923 $ 21,022,939 $ 55,161,779 $ 14,539,546
-------------- ------------- ------------- ------------- ------------- -------------
-------------- ------------- ------------- ------------- ------------- -------------
<CAPTION>
VANGUARD
FIXED
INCOME
SECURITIES
FUND VANGUARD
SHORT-TERM INDEX TRUST
BOND 500 LOAN
PORTFOLIO PORTFOLIO FUND
------------ ------------ ------------
<S> <C> <C> <C>
ADDITIONS
- - ------------------------------
Investment Income:
Dividends................. $ -- $ 101,962 $ --
Interest.................. 476,452 -- --
------------ ------------ ------------
476,452 101,962 --
Loan fund interest............ -- -- 445,637
Contributions................. 1,534,679 1,409,042 --
Transfers from other funds.... 2,505,614 3,804,556 4,668,309
------------ ------------ ------------
4,516,745 5,315,560 5,113,946
DEDUCTIONS
- - ------------------------------
Administrative expenses....... 7,823 4,721 --
Benefits paid................. 613,106 104,812 309,012
Transfers to other funds...... 2,869,650 1,527,263 2,789,683
------------ ------------ ------------
3,490,579 1,636,796 3,098,695
------------ ------------ ------------
1,026,166 3,678,764 2,015,251
Net realized and unrealized
(depreciation) appreciation
in fair value of
investments................. (71,184) 166,288 --
------------ ------------ ------------
Net increases......... 954,982 3,845,052 2,015,251
Net assets available for
benefits at beginning of
year........................ 5,703,066 615,443 4,290,478
------------ ------------ ------------
Net assets available for
benefits at end of year..... $ 6,658,048 $ 4,460,495 $ 6,305,729
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
11
<PAGE>
SCHEDULE OF ASSETS HELD FOR INVESTMENT
E-SYSTEMS, INC. TAX ADVANTAGED CAPITAL ACCUMULATION PLAN
DECEMBER 31, 1993
<TABLE>
<CAPTION>
DESCRIPTION OF
NAME OF ISSUER AND TITLE OF ISSUE INVESTMENT COST FAIR VALUE
- - ------------------------------------------------------- --------------------- ---------------- ----------------
<S> <C> <C> <C>
E-Systems, Inc. Securities Fund:
E-Systems, Inc. Common Stock......................... 235,561 shares $ 8,701,553 $ 10,281,707
Vanguard Money Market Reserves Prime Portfolio....... 117,815 shares 59,829 59,829
---------------- ----------------
8,761,382 10,341,536
Vanguard Investment Trust.............................. 36,064,115 shares 36,064,115 36,064,115
Vanguard/Morgan Growth Fund............................ 1,875,796 shares 22,481,281 22,528,312
The Windsor Fund....................................... 5,116,358 shares 66,336,503 71,168,543
Vanguard Money Market Reserves Prime Portfolio......... 14,484,631 shares 14,484,631 14,484,631
Vanguard Fixed Income Securities Fund Short-Term Bond
Portfolio............................................. 690,762 shares 7,468,133 7,529,311
Vanguard Index Trust 500 Portfolio..................... 149,632 shares 6,161,340 6,558,386
---------------- ----------------
TOTAL INVESTMENTS................................ $ 161,757,385 $ 168,674,834
---------------- ----------------
---------------- ----------------
</TABLE>
12
<PAGE>
SCHEDULE OF TRANSACTIONS OR SERIES OF TRANSACTIONS
IN EXCESS OF 5% OF THE CURRENT VALUE OF PLAN ASSETS
E-SYSTEMS, INC. TAX ADVANTAGED CAPITAL ACCUMULATION PLAN
YEAR ENDED DECEMBER 31, 1993
<TABLE>
<CAPTION>
NUMBER OF COST OF NUMBER OF PROCEEDS FROM GAIN (LOSS)
IDENTITY OF ISSUE PURCHASES PURCHASES SALES SALES ON SALES
- - ----------------------------------------------------- ------------- -------------- ------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
Category (iii)--Series of securities transactions:
E-Systems, Inc. Securities Fund.................... 365 $ 6,015,896 429 $ 6,232,489 $ 668,072
Vanguard Investment Trust.......................... 488 15,324,475 335 7,215,431 --
Vanguard/Morgan Growth Fund........................ 399 8,972,372 334 6,460,439 385,123
The Windsor Fund................................... 468 25,348,309 352 14,567,101 1,143,959
Vanguard Money Market Reserves Prime Portfolio..... 623 12,141,428 387 12,197,117 --
Vanguard Short-Term Corporate Bond Fund............ 509 4,165,627 298 3,312,554 39,901
Vanguard Index Trust 500 Portfolio................. 415 4,291,212 211 2,543,451 98,540
</TABLE>
There were no category (i), (ii) or (iv) reportable transactions during
1993.
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Trustee (or other persons who administer the Plan) have caused the annual report
to be signed by the undersigned, thereunto duly authorized.
E-SYSTEMS, INC. TAX ADVANTAGED
CAPITAL ACCUMULATION PLAN
(NAME OF PLAN)
By: __________________________________
Carlene B. Economy
ADMINISTRATOR
DATE:
14
<PAGE>
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statements
(Form S-8 No. 2-88384 and Form S-8 No. 33-28356) pertaining to the E-Systems,
Inc. Tax Advantaged Capital Accumulation Plan of E-Systems, Inc. and
Subsidiaries of our report dated April 4, 1994, with respect to the financial
statements and schedules of the E-Systems, Inc. Tax Advantaged Capital
Accumulation Plan included in this Annual Report (Form 11-K) for the year ended
December 31, 1993.
ERNST & YOUNG
Dallas, Texas
April 26, 1994
15
