<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM 10-K/A-1
/x/ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the fiscal year ended December 31, 1996
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from ______ to ______
________________
Commission file number 1-9924
________________
TRAVELERS GROUP INC.
(Exact name of registrant as specified in its charter)
Delaware 52-1568099
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
388 Greenwich Street, New York, New York 10013
(Address of principal executive offices) (Zip Code)
(212) 816-8000
(Registrant's telephone number, including area code)
________________
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange on
Title of each class which registered
___________________ ________________________
Common Stock, par value $ .01 per share New York Stock Exchange and Pacific
Stock Exchange
Depositary Shares, each representing New York Stock Exchange
1/10 of a share of 8.125%
Cumulative Preferred Stock, Series A
Depositary Shares, each representing 1/2 New York Stock Exchange
of a share of 9.25% Preferred Stock,
Series D
7 3/4% Notes Due June 15, 1999 New York Stock Exchange
1998 Warrants to Purchase Common Stock New York Stock Exchange
8% Trust Preferred Securities of New York Stock Exchange
Subsidiary Trust (and registrant's
guaranty with respect thereto)
7 3/4% Trust Preferred Securities of New York Stock Exchange
Subsidiary Trust (and registrant's
guaranty with respect thereto)
7 5/8% Trust Preferred Securities of New York Stock Exchange
Subsidiary Trust (and registrant's
guaranty with respect thereto)
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
______ ______
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. /X/
The aggregate market value of the voting stock held by nonaffiliates of the
registrant as of March 5, 1997 was approximately $34.2 billion.
As of March 5, 1997, 641,379,081 shares of the registrant's Common Stock, par
value $.01 per share, were outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Certain portions of the registrant's Annual Report to Stockholders for the
fiscal year ended December 31, 1996 are incorporated by reference into Part II
of this Form 10-K/A-1.
Certain portions of the registrant's Proxy Statement for the 1997 Annual Meeting
of Stockholders to be held on April 23, 1997 are incorporated by reference into
Part III of this Form 10-K/A-1.
<PAGE>
EXPLANATORY NOTE
This Form 10-K/A-1 is being filed to include as an exhibit to the Form
10-K financial statements for the Travelers Group 401(k) Savings Plan
pursuant to Rule 15d-21 of the Securities Exchange Act of 1934, as amended.
Other than the related additions to the Exhibit Index, the text of Item 14
has not been amended and speaks as of the date of the original filing of the
Form 10-K.
2
<PAGE>
PART IV
-------
Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K.
(a) Documents filed as a part of the report:
(1) Financial Statements. See Index to Consolidated Financial
Statements and Schedules on page F-1 hereof.
(2) Financial Statement Schedules. See Index to Consolidated
Financial Statements and Schedules on page F-1 hereof.
(3) Exhibits:
See Exhibit Index.
(b) Reports on Form 8-K:
No reports on Form 8-K were filed during the fourth quarter of
1996.
3
<PAGE>
EXHIBIT INDEX
_____________
Exhibit Filing
Number Description of Exhibit Method
_______ ______________________ ________
3.01 Restated Certificate of Incorporation of
Travelers Group Inc. (formerly The
Travelers Inc.) (the "Company"),
Certificate of Designation of Cumulative
Adjustable Rate Preferred Stock, Series Y,
and Certificate of Amendment to the
Restated Certificate of Incorporation,
incorporated by reference to Exhibit 3.01
to Amendment No. 1 to the Company's
Registration Statement on Form S-4 (No.
333-00737).
3.02 By-Laws of the Company as amended through
January 24, 1996, incorporated by reference
to Exhibit 3.02 to the Company's Annual
Report on Form 10-K for the fiscal year
ended December 31, 1995 (File No. 1-9924)
(the "Company's 1995 10-K").
10.01* Employment Protection Agreement, dated as
of December 31, 1987, between the Company
(as successor to Commercial Credit Company
("CCC")) and Sanford I. Weill, incorporated
by reference to Exhibit 10.03 to CCC's
Annual Report on Form 10-K for the fiscal
year ended December 31, 1987 (File No.
1-6594).
10.02.1* Travelers Group Stock Option Plan (as
amended and restated as of April 24, 1996).
10.02.2* Amendment No. 14 to the Travelers Group
Stock Option Plan, incorporated by
reference to Exhibit 10.01 to the Company's
Quarterly Report on Form 10-Q for the
fiscal quarter ended September 30, 1996
(File No. 1-9924) (the "Company's September
30, 1996 10-Q").
10.03* Travelers Group 1996 Stock Incentive Plan
(as amended through November 22, 1996).
10.04* Retirement Benefit Equalization Plan of the
Company (as amended and restated as of
January 1, 1994).
10.05* Letter Agreement between Joseph A.
Califano, Jr. and the Company, dated
December 14, 1988, incorporated by
reference to Exhibit 10.21.1 to the
Company's Annual Report on Form 10-K for
the fiscal year ended December 31, 1988
(File No. 1-9924).
4
<PAGE>
Exhibit Filing
Number Description of Exhibit Method
_______ ______________________ ________
10.06* Travelers Group Inc. Amended and Restated
Compensation Plan for Non-Employee
Directors, incorporated by reference to
Exhibit 10.02 to the Company's September
30, 1996 10-Q.
10.07.1* Supplemental Retirement Plan of the
Company, incorporated by reference to
Exhibit 10.23 to the Company's Annual
Report on Form 10-K for the fiscal year
ended December 31, 1990 (File No. 1-9924).
10.07.2* Amendment to the Company's Supplemental
Retirement Plan, incorporated by reference
to Exhibit 10.06.2 to the Company's Annual
Report on Form 10-K for the fiscal year
ended December 31, 1993 (File No. 1-9924)
(the "Company's 1993 10-K").
10.08* The Travelers Inc. Executive Performance
Compensation Plan, effective April 27,
1994, incorporated by reference to Exhibit
10.07 to the Company's 1995 10-K.
10.09* Travelers Group Capital Accumulation Plan
(as amended through September 25, 1996),
incorporated by reference to Exhibit 10.03
to the Company's September 30, 1996 10-Q.
10.10* Agreement dated December 21, 1993 between
the Company and Edward H. Budd,
incorporated by reference to Exhibit 10.22
to the Company's 1993 10-K.
10.11* The Travelers Inc. Deferred Compensation
and Partnership Participation Plan,
incorporated by reference to Exhibit 10.31
to the Company's Annual Report on Form
10-K/A-1 for the fiscal year ended December
31, 1994 (File No. 1-9924).
10.12.1 Stock Purchase Agreement dated as of
November 28, 1995, between The Travelers
Insurance Group Inc. and Aetna Life and
Casualty Company, incorporated by reference
to Exhibit 10.1 to the Annual Report on
Form 10-K of Aetna Life and Casualty
Company for the fiscal year ended December
31, 1995 (File No. 1-5704).
5
<PAGE>
Exhibit Filing
Number Description of Exhibit Method
_______ ______________________ ________
10.12.2 Assignment of Stock Purchase Agreement,
dated as of March 22, 1996, between
Travelers Property Casualty Corp. (formerly
Travelers/Aetna Property Casualty Corp.)
("TAP") and The Travelers Insurance Group
Inc., incorporated by reference to Exhibit
2.2 to Amendment No. 5 of the Registration
Statement on Form S-1 of TAP (No.
333-2254).
10.12.3 Amendment to Stock Purchase Agreement,
dated as of April 2, 1996, between TAP and
Aetna Casualty and Surety Company,
incorporated by reference to Exhibit 10.01
to the Company's Quarterly Report on Form
10-Q for the fiscal quarter ended March 31,
1996 (File No. 1-9924) (the "Company's
March 31, 1996 10-Q").
10.13* The Travelers Corporation 1984 Management
Incentive Plan, as amended effective
January 1, 1991, incorporated by reference
to Exhibit 10(c) to the Annual Report on
Form 10-K of The Travelers Corporation
("old Travelers") for the fiscal year ended
December 31, 1990 (File No. 1-5799).
10.14* The Travelers Corporation Supplemental
Benefit Plan, effective December 20, 1992,
incorporated by reference to Exhibit 10(d)
to the Annual Report on Form 10-K of old
Travelers for the fiscal year ended
December 31, 1992 (File No. 1-5799).
10.15* The Travelers Corporation TESIP Restoration
and Non-Qualified Savings Plan, effective
January 1, 1991, incorporated by reference
to Exhibit 10(e) to the Annual Report on
Form 10-K of old Travelers for the fiscal
year ended December 31, 1991 (File No.
1-5799).
10.16* The Travelers Corporation Directors'
Deferred Compensation Plan, as amended
November 7, 1986, incorporated by reference
to Exhibit 10(d) to the Annual Report on
Form 10-K of old Travelers for the fiscal
year ended December 31, 1986 (File No.
1-5799).
10.17* Employment Agreement dated as of December
30, 1994, between SBI and Joseph J. Plumeri
II, incorporated by reference to Exhibit
10.30 to the Company's Annual Report on
Form 10-K for the fiscal year ended
December 31, 1994 (File No. 1-9924).
6
<PAGE>
Exhibit Filing
Number Description of Exhibit Method
_______ ______________________ ________
10.18* Letter Agreement, dated as of January 13,
1997, between the Company and Jon C.
Madonna.
10.19* Travelers Property Casualty Corp. Capital
Accumulation Plan (as amended through
September 1, 1996), incorporated by
reference to Exhibit 10.01 to the Quarterly
Report on Form 10-Q of Travelers Property
Casualty Corp. (formerly Travelers/Aetna
Property Casualty Corp.) for the fiscal
quarter ended September 30, 1996 (File No.
1-14328).
11.01 Computation of Earnings Per Share.
12.01 Computation of Ratio of Earnings to Fixed
Charges.
13.01 Pages 32 through 78 of the 1996 Annual
Report to Stockholders of the Company
(pagination of exhibit does not correspond
to pagination in the 1996 Annual Report to
Stockholders).
21.01 Subsidiaries of the Company.
23.01 Consent of KPMG Peat Marwick LLP,
Independent Certified Public Accountants.
23.02** Accountant's consent to incorporation by Electronic
reference of report filed with Exhibit
99.07.
24.01 Powers of Attorney.
27.01 Financial Data Schedule.
99.01 The fourth paragraph on page 26 of the
Company's September 30, 1993 10-Q, the
first paragraph under the heading "Smith
Barney" on page 65 of the Company's 1995
10-K and the first paragraph on page 34 of
the Company's September 30, 1996 10-Q.
99.02 The third paragraph on page 16 of the
Quarterly Report on Form 10-Q of Smith
Barney Holdings Inc. for the fiscal quarter
ended September 30, 1994 and the last full
paragraph on page 65 of the Company's 1995
10-K.
99.03 The first paragraph on page 35 of the
Company's Quarterly Report on Form 10-Q for
the fiscal quarter ended June 30, 1996 (the
"Company's June 30, 1996 10-Q").
99.04 The paragraph that begins on page 2 and
ends on page 3 of the Company's Current
Report on Form 8-K dated March 1, 1994.
7
<PAGE>
Exhibit Filing
Number Description of Exhibit Method
_______ ______________________ ________
99.05 The paragraph that begins on page 90 and
ends on page 91 of the Prospectus dated
April 22, 1996 of TAP, the second paragraph
on page 35 of the Company's June 30, 1996
10-Q and the second paragraph on page 34 of
the Company's September 30, 1996 10-Q.
99.06 The second paragraph on page 30 of the
Company's Quarterly Report on Form 10-Q for
the fiscal quarter ended September 30,
1995, the fourth paragraph on page 25 of
the Company's March 31, 1996 10-Q and the
third paragraph on page 34 of the Company's
September 30, 1996 10-Q.
99.07** 1996 Financial Statements of Travelers Electronic
Group 401(k) Savings Plan.
The total amount of securities authorized pursuant to any instrument defining
rights of holders of long-term debt of the Company does not exceed 10% of the
total assets of the Company and its consolidated subsidiaries. The Company
will furnish copies of any such instrument to the Commission upon request.
The financial statements required by Form 11-K for 1996 for the Travelers Group
401(k) Savings Plan are being filed as an exhibit to this Form 10-K/A-1
pursuant to Rule 15d-21 of the Securities Exchange Act of 1934, as amended.
Copies of any of the exhibits referred to above will be furnished at a cost of
$.25 per page (although no charge will be made for the 1996 Annual Report on
Form 10-K) to security holders who make written request therefor to Corporate
Communications and Investor Relations Department, Travelers Group Inc., 388
Greenwich Street, New York, New York 10013.
____________________
* Denotes a management contract or compensatory plan or arrangement required
to be filed as an exhibit pursuant to Item 14(c) of Form 10-K.
** Filed with Form 10-K/A-1.
Except as otherwise indicated, all other exhibits were filed with the initial
filing of the Form 10-K.
8
<PAGE>
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized, on the 26th day of
June, 1997.
TRAVELERS GROUP INC.
(Registrant)
By: /s/ Irwin Ettinger
----------------------
Irwin Ettinger
Executive Vice President
9
<PAGE>
EXHIBIT INDEX
_____________
Exhibit Filing
Number Description of Exhibit Method
_______ ______________________ ________
3.01 Restated Certificate of Incorporation of
Travelers Group Inc. (formerly The
Travelers Inc.) (the "Company"),
Certificate of Designation of Cumulative
Adjustable Rate Preferred Stock, Series Y,
and Certificate of Amendment to the
Restated Certificate of Incorporation,
incorporated by reference to Exhibit 3.01
to Amendment No. 1 to the Company's
Registration Statement on Form S-4 (No.
333-00737).
3.02 By-Laws of the Company as amended through
January 24, 1996, incorporated by reference
to Exhibit 3.02 to the Company's Annual
Report on Form 10-K for the fiscal year
ended December 31, 1995 (File No. 1-9924)
(the "Company's 1995 10-K").
10.01* Employment Protection Agreement, dated as
of December 31, 1987, between the Company
(as successor to Commercial Credit Company
("CCC")) and Sanford I. Weill, incorporated
by reference to Exhibit 10.03 to CCC's
Annual Report on Form 10-K for the fiscal
year ended December 31, 1987 (File No.
1-6594).
10.02.1* Travelers Group Stock Option Plan (as
amended and restated as of April 24, 1996).
10.02.2* Amendment No. 14 to the Travelers Group
Stock Option Plan, incorporated by
reference to Exhibit 10.01 to the Company's
Quarterly Report on Form 10-Q for the
fiscal quarter ended September 30, 1996
(File No. 1-9924) (the "Company's September
30, 1996 10-Q").
10.03* Travelers Group 1996 Stock Incentive Plan
(as amended through November 22, 1996).
10.04* Retirement Benefit Equalization Plan of the
Company (as amended and restated as of
January 1, 1994).
10.05* Letter Agreement between Joseph A.
Califano, Jr. and the Company, dated
December 14, 1988, incorporated by
reference to Exhibit 10.21.1 to the
Company's Annual Report on Form 10-K for
the fiscal year ended December 31, 1988
(File No. 1-9924).
<PAGE>
Exhibit Filing
Number Description of Exhibit Method
_______ ______________________ ________
10.06* Travelers Group Inc. Amended and Restated
Compensation Plan for Non-Employee
Directors, incorporated by reference to
Exhibit 10.02 to the Company's September
30, 1996 10-Q.
10.07.1* Supplemental Retirement Plan of the
Company, incorporated by reference to
Exhibit 10.23 to the Company's Annual
Report on Form 10-K for the fiscal year
ended December 31, 1990 (File No. 1-9924).
10.07.2* Amendment to the Company's Supplemental
Retirement Plan, incorporated by reference
to Exhibit 10.06.2 to the Company's Annual
Report on Form 10-K for the fiscal year
ended December 31, 1993 (File No. 1-9924)
(the "Company's 1993 10-K").
10.08* The Travelers Inc. Executive Performance
Compensation Plan, effective April 27,
1994, incorporated by reference to Exhibit
10.07 to the Company's 1995 10-K.
10.09* Travelers Group Capital Accumulation Plan
(as amended through September 25, 1996),
incorporated by reference to Exhibit 10.03
to the Company's September 30, 1996 10-Q.
10.10* Agreement dated December 21, 1993 between
the Company and Edward H. Budd,
incorporated by reference to Exhibit 10.22
to the Company's 1993 10-K.
10.11* The Travelers Inc. Deferred Compensation
and Partnership Participation Plan,
incorporated by reference to Exhibit 10.31
to the Company's Annual Report on Form
10-K/A-1 for the fiscal year ended December
31, 1994 (File No. 1-9924).
10.12.1 Stock Purchase Agreement dated as of
November 28, 1995, between The Travelers
Insurance Group Inc. and Aetna Life and
Casualty Company, incorporated by reference
to Exhibit 10.1 to the Annual Report on
Form 10-K of Aetna Life and Casualty
Company for the fiscal year ended December
31, 1995 (File No. 1-5704).
<PAGE>
Exhibit Filing
Number Description of Exhibit Method
_______ ______________________ ________
10.12.2 Assignment of Stock Purchase Agreement,
dated as of March 22, 1996, between
Travelers Property Casualty Corp. (formerly
Travelers/Aetna Property Casualty Corp.)
("TAP") and The Travelers Insurance Group
Inc., incorporated by reference to Exhibit
2.2 to Amendment No. 5 of the Registration
Statement on Form S-1 of TAP (No.
333-2254).
10.12.3 Amendment to Stock Purchase Agreement,
dated as of April 2, 1996, between TAP and
Aetna Casualty and Surety Company,
incorporated by reference to Exhibit 10.01
to the Company's Quarterly Report on Form
10-Q for the fiscal quarter ended March 31,
1996 (File No. 1-9924) (the "Company's
March 31, 1996 10-Q").
10.13* The Travelers Corporation 1984 Management
Incentive Plan, as amended effective
January 1, 1991, incorporated by reference
to Exhibit 10(c) to the Annual Report on
Form 10-K of The Travelers Corporation
("old Travelers") for the fiscal year ended
December 31, 1990 (File No. 1-5799).
10.14* The Travelers Corporation Supplemental
Benefit Plan, effective December 20, 1992,
incorporated by reference to Exhibit 10(d)
to the Annual Report on Form 10-K of old
Travelers for the fiscal year ended
December 31, 1992 (File No. 1-5799).
10.15* The Travelers Corporation TESIP Restoration
and Non-Qualified Savings Plan, effective
January 1, 1991, incorporated by reference
to Exhibit 10(e) to the Annual Report on
Form 10-K of old Travelers for the fiscal
year ended December 31, 1991 (File No.
1-5799).
10.16* The Travelers Corporation Directors'
Deferred Compensation Plan, as amended
November 7, 1986, incorporated by reference
to Exhibit 10(d) to the Annual Report on
Form 10-K of old Travelers for the fiscal
year ended December 31, 1986 (File No.
1-5799).
10.17* Employment Agreement dated as of December
30, 1994, between SBI and Joseph J. Plumeri
II, incorporated by reference to Exhibit
10.30 to the Company's Annual Report on
Form 10-K for the fiscal year ended
December 31, 1994 (File No. 1-9924).
<PAGE>
Exhibit Filing
Number Description of Exhibit Method
_______ ______________________ ________
10.18* Letter Agreement, dated as of January 13,
1997, between the Company and Jon C.
Madonna.
10.19* Travelers Property Casualty Corp. Capital
Accumulation Plan (as amended through
September 1, 1996), incorporated by
reference to Exhibit 10.01 to the Quarterly
Report on Form 10-Q of Travelers Property
Casualty Corp. (formerly Travelers/Aetna
Property Casualty Corp.) for the fiscal
quarter ended September 30, 1996 (File No.
1-14328).
11.01 Computation of Earnings Per Share.
12.01 Computation of Ratio of Earnings to Fixed
Charges.
13.01 Pages 32 through 78 of the 1996 Annual
Report to Stockholders of the Company
(pagination of exhibit does not correspond
to pagination in the 1996 Annual Report to
Stockholders).
21.01 Subsidiaries of the Company.
23.01 Consent of KPMG Peat Marwick LLP,
Independent Certified Public Accountants.
23.02** Accountant's consent to incorporation by Electronic
reference of report filed with Exhibit
99.07.
24.01 Powers of Attorney.
27.01 Financial Data Schedule.
99.01 The fourth paragraph on page 26 of the
Company's September 30, 1993 10-Q, the
first paragraph under the heading "Smith
Barney" on page 65 of the Company's 1995
10-K and the first paragraph on page 34 of
the Company's September 30, 1996 10-Q.
99.02 The third paragraph on page 16 of the
Quarterly Report on Form 10-Q of Smith
Barney Holdings Inc. for the fiscal quarter
ended September 30, 1994 and the last full
paragraph on page 65 of the Company's 1995
10-K.
99.03 The first paragraph on page 35 of the
Company's Quarterly Report on Form 10-Q for
the fiscal quarter ended June 30, 1996 (the
"Company's June 30, 1996 10-Q").
99.04 The paragraph that begins on page 2 and
ends on page 3 of the Company's Current
Report on Form 8-K dated March 1, 1994.
<PAGE>
Exhibit Filing
Number Description of Exhibit Method
_______ ______________________ ________
99.05 The paragraph that begins on page 90 and
ends on page 91 of the Prospectus dated
April 22, 1996 of TAP, the second paragraph
on page 35 of the Company's June 30, 1996
10-Q and the second paragraph on page 34 of
the Company's September 30, 1996 10-Q.
99.06 The second paragraph on page 30 of the
Company's Quarterly Report on Form 10-Q for
the fiscal quarter ended September 30,
1995, the fourth paragraph on page 25 of
the Company's March 31, 1996 10-Q and the
third paragraph on page 34 of the Company's
September 30, 1996 10-Q.
99.07** 1996 Financial Statements of Travelers Electronic
Group 401(k) Savings Plan.
The total amount of securities authorized pursuant to any instrument defining
rights of holders of long-term debt of the Company does not exceed 10% of the
total assets of the Company and its consolidated subsidiaries. The Company
will furnish copies of any such instrument to the Commission upon request.
The financial statements required by Form 11-K for 1996 for the Travelers Group
401(k) Savings Plan are being filed as an exhibit to this Form 10-K/A-1
pursuant to Rule 15d-21 of the Securities Exchange Act of 1934, as amended.
Copies of any of the exhibits referred to above will be furnished at a cost of
$.25 per page (although no charge will be made for the 1996 Annual Report on
Form 10-K) to security holders who make written request therefor to Corporate
Communications and Investor Relations Department, Travelers Group Inc., 388
Greenwich Street, New York, New York 10013.
___________________
* Denotes a management contract or compensatory plan or arrangement required
to be filed as an exhibit pursuant to Item 14(c) of Form 10-K.
** Filed with Form 10-K/A-1.
Except as otherwise indicated, all other exhibits were filed with the initial
filing of the Form 10-K.
<PAGE>
Exhibit 23.02
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The Plans Administration Committee
Travelers Group Inc.:
We consent to the incorporation by reference in the Registration Statements
(Nos. 33-32130, 33-43997, 33-52027, 33-59524 and 333-25603) on Form S-8 of
Travelers Group Inc. of our report dated June 23, 1997 relating to the
statements of net assets available for plan benefits of Travelers Group
401(k) Savings Plan as of December 31, 1996 and 1995, and the related
statements of changes in net assets available for plan benefits for the years
then ended, and the supplemental schedules of assets held for investment
purposes, assets held for investment purposes which were both acquired and
disposed within the plan year, and reportable transactions as of and for the
year ended December 31, 1996, which report is being filed with Form 10-K/A-1
as an amendment to the 1996 Annual Report on Form 10-K of Travelers Group Inc.
/s/ KPMG PEAT MARWICK LLP
New York, New York
June 26, 1997
<PAGE>
Exhibit 99.07
Travelers Group 401(k) Savings Plan
Financial Statements and Schedules
December 31, 1996 and 1995
(With Independent Auditors' Report Thereon)
<PAGE>
Travelers Group 401(k) Savings Plan
December 31, 1996 and 1995
Index
<TABLE>
<CAPTION>
Page
-----
<S> <C>
Independent Auditors' Report 1
Financial Statements:
Statements of Net Assets Available for Plan Benefits
at December 31, 1996 and 1995 2
Statements of Changes in Net Assets Available for Plan Benefits
for the years ended December 31, 1996 and 1995 3
Notes to Financial Statements 4
Supplemental Schedules:
Schedule to Form 5500: Item 27(a)
Schedule of Assets Held for Investment Purposes
at December 31, 1996 32
Schedule of Assets Held for Investment Purposes
Which Were Both Acquired and Disposed Within The Plan Year
for the year ended December 31, 1996 34
Schedule to Form 5500: Item 27(d)
Schedule of Reportable Transactions
for the year ended December 31, 1996 35
</TABLE>
The other schedules required by Item 27 of Form 5500 are not applicable and
are therefore omitted.
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Plans Administration Committee of
Travelers Group Inc.:
We have audited the accompanying statements of net assets available for plan
benefits of Travelers Group 401(k) Savings Plan as of December 31, 1996 and
1995, and the related statements of changes in net assets available for plan
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 plan benefits of the Plan
as of December 31, 1996 and 1995, and the changes in net assets available for
plan benefits for the years then ended in conformity with generally accepted
accounting principles.
Our December 31, 1996 audit was performed for the purpose of forming an
opinion on the basic financial statements taken as a whole. The supplemental
schedules of assets held for investment purposes, assets held for investment
purposes which were both acquired and disposed within the plan year, and
reportable transactions are presented for the purpose of additional analysis
and are not a required part of the basic financial statements, but are
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974, as amended. The supplemental schedules have been
subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements as of and for the year
ended December 31, 1996 taken as a whole.
/s/ KPMG PEAT MARWICK LLP
New York, New York
June 23, 1997
1
<PAGE>
Travelers Group 401(k) Savings Plan
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
December 31, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
---------------- ----------------
<S> <C> <C>
Assets:
Investments (notes 2 and 3) $ 2,867,380,324 $ 1,193,575,670
Cash 9,405,955 720,652
---------------- ----------------
2,876,786,279 1,194,296,322
---------------- ----------------
Receivables:
Contributions 18,838,337 21,930,809
Dividends and other 14,111,728 1,103,858
---------------- ----------------
Total receivables 32,950,065 23,034,667
---------------- ----------------
Total assets 2,909,736,344 1,217,330,989
---------------- ----------------
Liabilities:
Payable for investment purchases 2,536,913 1,537,443
Forfeiture credits due to employer 12,800,143 --
ESOP note payable 34,900,000 --
---------------- ----------------
Total liabilities 50,237,056 1,537,443
---------------- ----------------
Net assets available for plan benefits $ 2,859,499,288 $ 1,215,793,546
---------------- ----------------
---------------- ----------------
</TABLE>
See accompanying notes to financial statements.
2
<PAGE>
Travelers Group 401(k) Savings Plan
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
For the years ended December 31, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
--------------- ---------------
<S> <C> <C>
Investment activity:
Dividends $79,270,418 $54,730,004
Interest 41,521,488 10,397,567
Net appreciation in fair value
of investments 421,845,008 238,944,182
--------------- ---------------
542,636,914 304,071,753
Less: Trustee/administrative expenses (1,877,723) (2,207,972)
--------------- ---------------
Net investment income 540,759,191 301,863,781
--------------- ---------------
Contributions:
Participant 230,647,125 120,749,693
Employer (note 6) 32,714,489 24,143,255
--------------- ---------------
Total contributions 263,361,614 144,892,948
--------------- ---------------
Distributions to participants (193,469,103) (86,127,167)
--------------- ---------------
Increase in net assets available for plan benefits 610,651,702 360,629,562
--------------- ---------------
Net assets available for plan benefits (note 1):
Beginning of year 1,215,793,546 855,072,888
Transfer from Copeland Associates, Inc. 28,135,653 --
Transfer from TESIP 1,111,942,625 --
Transfer to United HealthCare Corp. (107,024,238) --
Transfer from Lehman Brothers Holdings, Inc. -- 91,096
--------------- ---------------
End of year $2,859,499,288 $1,215,793,546
--------------- ---------------
--------------- ---------------
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996 AND 1995
1. PLAN DESCRIPTION
The following brief description of Travelers Group 401(k) Savings Plan (the
"Plan") is provided for general information purposes only. Participants
should refer to the Travelers Group 401(k) Savings Plan Document (as amended
and restated as of June 1, 1996) for more complete information.
The Plan covers all eligible employees of Travelers Group Inc. ("Travelers"),
the Plan sponsor, and eligible employees of subsidiaries and affiliates of
Travelers (the "Company") as may become participating companies. The Plan is
administered by the Plans Administration Committee of Travelers Group Inc.
("Plan Administrator").
Effective as of January 1, 1996, the Travelers Savings, Investment and Stock
Ownership Plan ("TESIP") and the 401(k) Retirement and Profit Sharing Plan of
Copeland Associates, Inc. ("Copeland") were merged into the Plan. Effective
January 2, 1996, all assets and liabilities attributable to participants
employed by MetraHealth Companies, Inc. or affiliates thereof ("MetraHealth")
who were included in TESIP were transferred to the United HealthCare
Corporation 401(k) Savings Plan pursuant to an agreement between Travelers
and MetraHealth ("MetraHealth 401(k) Transfer") in connection with the
acquisition of MetraHealth by United HealthCare Corporation. Following the
MetraHealth 401(k) Transfer, Travelers has no further obligation to provide
any benefits to MetraHealth participants under the Plan.
The TESIP merger resulted in a $1,004,918,387 increase in net assets
available for plan benefits, net of the $107,024,238 transferred to the
United HealthCare Corporation 401(k) Savings Plan attributable to MetraHealth
participants. The Copeland merger resulted in a $28,135,653 increase in net
assets available for plan benefits.
During 1993, following the acquisition by the Company of the domestic retail
brokerage and asset management businesses of Shearson Lehman Brothers
Holdings, Inc. ("Shearson"), the net assets of the 401(k) savings plan
sponsored by Shearson (the "Shearson Plan") that were attributable to the
participants included in the acquisition were transferred to the Plan.
During 1995, as prescribed by the acquisition document, additional transfers
were made between Lehman Brothers Holdings, Inc. and the Plan.
The Plan is a defined contribution plan designed to encourage savings on the
part of eligible employees. Eligible employees may elect to have a portion of
their regular pay, including overtime, reduced each pay period, in any one
percent increment, by an amount from 1% to 15% of their compensation (subject
to a statutory limitation of $9,500 and $9,240 for 1996 and 1995,
respectively) as pre-tax contributions, and the Company will make a
contribution, equal to a specified percentage of the participant's
contribution, on their behalf as a pre-tax contribution.
Employee pre-tax contributions and employer contributions, as well as the
earnings thereon, are taxed to the participant only at the time of
distribution. Travelers, for itself or on behalf of the Company, as
appropriate, contributes a matching employer contribution on behalf of each
participant as of the last day of the Plan year. For the years ended December
31, 1996 and 1995, the matching employer contribution made by Travelers
4
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. PLAN DESCRIPTION (CONTINUED)
equaled 100% of each participant's pre-tax contributions up to an annual
maximum of $1,000. In addition, Travelers, for itself or on behalf of the
Company, makes contributions on behalf of eligible employees who elect to
have pre-tax contributions invested in the Travelers Common Stock Fund by
having such contributions invested at a 5% discount from the fair value of
such stock ("discount contributions").
On June 15, 1989, TESIP was amended to include an Employee Stock Ownership
Plan (the "ESOP"). On June 21, 1989, the ESOP borrowed $200 million, at a
variable interest rate, from Chase Manhattan Bank. The variable interest
rate, which is adjusted monthly, was 5.01% as of December 31, 1996.
Increasing semi-annual payments that began January 1, 1990 will fully
amortize the debt by January 1, 1998. Principal payments made during 1996
totaled $32.4 million. The minimum principal payments to be made in 1997 and
1998 are $17.5 million and $17.4 million, respectively. The loan is
guaranteed by Travelers Group Inc.
On June 21, 1989, the trustee for the ESOP, Fleet Bank, purchased 3,755,869
shares of Travelers Corporation Series A Preference Stock for the ESOP for
$200 million with the proceeds of the loan. On December 31, 1993, in
conjunction with the merger of the Travelers Corporation into Travelers, the
shares of Series A Preference Stock were converted into shares of Travelers
Series C Convertible Preferred Stock, which have substantially the same
rights and privileges as the shares so converted. The Series C Convertible
Preferred Stock is pledged as collateral for the loan and is being released
from collateral as the loan is repaid. The Company matches pre-tax
contributions by employees as described above with the Series C Convertible
Preferred Stock valued at the greater of its minimum value of $53.25 per
share or the estimated fair value of the Series C Convertible Preferred Stock
determined as described in note 2. Each share of Series C Convertible
Preferred Stock is guaranteed by Travelers at a minimum value of $53.25 and
is entitled to receive a cumulative annual divided of $4.53. Such dividends
are reinvested in additional shares of Series C Convertible Preferred Stock
at a cost equal to the value determined as described in note 2. These shares
are then subject to the same guaranteed minimum value. The Series C
Convertible Preferred Stock may be held only by the ESOP trustee. The Series
C Preferred is convertible into one share of Travelers common stock for each
$32.98 of stated value of Series C Preferred, subject to antidilution
adjustments in certain circumstances.
As of December 31, 1996, participants in the ESOP had an aggregate beneficial
interest in Series C Convertible Preferred Stock totaling $220.2 million
(2,705,589 shares based on the $81.40 per share estimated fair value at
December 31, 1996). In addition, at December 31, 1996, the ESOP had an
aggregate beneficial interest in Series C Convertible Preferred Stock
totaling $30.9 million (380,023 shares based on the $81.40 per share
estimated fair value at December 31, 1996), which was unallocated to
participants in the ESOP.
Although it has not expressed any intention to do so, Travelers has the right
under the Plan to discontinue its contributions at any time and to terminate
the Plan subject to the provisions of the Employee Retirement Income Security
Act of 1974, as amended ("ERISA"). In the event of Plan termination, either
full or partial, all amounts credited to the participants' accounts shall
become 100 percent vested and, therefore, will not be subject to forfeiture.
5
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. PLAN DESCRIPTION (CONTINUED)
FUND TRANSFERS AND ALLOCATION OF CONTRIBUTIONS
Participants may elect to divide their contributions among the funds included
in the Plan in increments divisible by 5%.
Matching employer contributions are invested in the Travelers Common Stock
Fund and the ESOP.
A participant may elect to suspend his/her pre-tax contributions, as soon as
administratively practicable, by filing prior written notice with the Plan
Administrator. Such participant may thereafter resume pre-tax contributions
as of the first pay period beginning in any calendar month, subject to the
Plan's notice requirements. In addition, a participant may change the rate of
his/her pre-tax contributions as of the first pay period beginning in any
calendar month, subject to the Plan's notice requirements.
A participant may elect to change the allocation of future pre-tax
contributions among the funds once each calendar month as of the first day of
any pay period, subject to the Plan's notice requirements.
A participant may elect to transfer the value of his/her pre-tax
contributions in increments divisible by 5% or a specified number of whole
shares from one or more of the investment funds to another investment fund or
funds once each calendar month. The transfer will be effective as of the last
business day of the calendar month subject to the Plan's notice requirements.
CONTRIBUTIONS
The rights of a participant to his/her pre-tax contributions and any earnings
thereon are at all times fully vested and non-forfeitable. Matching employer
contributions are fully vested and non-forfeitable for those participants
whose initial date of employment is before January 1, 1992. For those
participants whose initial date of employment is on or after January 1, 1992,
matching employer contributions are 100% vested and non-forfeitable after
five years of service. Forfeitures of employer matching contributions to the
Plan by participants that terminate employment prior to becoming fully vested
are used to reduce future employer contributions to the Plan. Forfeitures not
yet utilized to reduce contributions are reflected as a liability in the
statements of net assets available for plan benefits.
ROLLOVER AND TRANSFER CONTRIBUTIONS
The Plan permits participants to have their interests in other qualified
profit-sharing plans transferred to the Plan or to make rollover
contributions into the Plan from an individual retirement account (or similar
arrangement) resulting from a rollover from another qualified plan or
directly from another qualified plan. Such transfers or rollovers to the Plan
may only be made with the approval of the Plan Administrator and do not
affect any other contributions made by or on behalf of a participant.
6
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. PLAN DESCRIPTION (CONTINUED)
LOANS
Subject to the Plan's provisions and the requirements contained within ERISA
and the Internal Revenue Code of 1986, as amended (the "Code"), a participant
may apply for a loan from the Plan at an annual interest rate equal to one
percentage point above the Prime Rate published in THE WALL STREET JOURNAL
for the first business day of the month in which the loan application is
received. The loan repayment by a participant who is employed by the Company
is generally made through after-tax payroll deductions.
WITHDRAWALS
Prior to termination of employment, a participant may withdraw, as of the
last business day of any month, subject to the Plan's notice requirements,
all or a portion of the value of his or her rollover contributions account
(with the exception of certain participants), all or any portion of the
vested value of his/her account if the participant has attained age 59-1/2 or
becomes totally and permanently disabled, or all or any portion of the value
of his/her pre-tax contributions account in the event of demonstrated
financial hardship, subject to the Plan's provisions.
Withdrawals to which a participant is entitled are the amounts that can be
provided by the contributions and income thereon (including net realized and
unrealized investment gains and losses) allocated to each participant's
account. Withdrawals from the Travelers Common Stock Fund, the Travelers
Property Casualty Corp. Common Stock Fund ("TAP Common Stock Fund") and the
American Express Common Stock Fund may be paid in either shares of common
stock or cash at the discretion of the participant. Fractional shares and
withdrawals from other funds are paid in cash.
DISTRIBUTIONS
The participant shall have the total of his/her account distributed in a
lump-sum payment on the last business day of the month coincident with
his/her retirement date. If the participant leaves the Company before
retirement, he/she may elect to have his/her account distributed to him/her
as of the last business day of the month coincident to his/her last day of
employment. Distributions from the Travelers Common Stock Fund, the TAP
Common Stock Fund and the American Express Common Stock Fund may be paid in
either shares of common stock or cash at the discretion of the participant.
Distributions from the ESOP may be paid in either shares of Travelers common
stock or cash at the discretion of the participant. Fractional shares and
distributions from other funds are paid in cash.
OTHER INFORMATION
During 1996, the Smith Barney Income Return Fund and the Smith Barney High
Income Fund were terminated, and upon termination, no more contributions were
accepted to these funds. As of January 2, 1997, all balances in these funds
were transferred to other funds in the Plan as elected by the participants
or, where elections were not made, the funds were temporarily transferred to
the Smith Barney Money Fund.
During 1995, the assets of the Smith Barney Global Opportunities Fund were
transferred to the Smith Barney Money Fund.
7
<PAGE>
TRAVELERS GROUP 401(K) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. PLAN DESCRIPTION (CONTINUED)
On April 26, 1995, the shareholders of Travelers approved an amendment
changing the Company's name from The Travelers Inc. to Travelers Group Inc.
Subsequent to this date, the Plan changed its name from The Travelers Inc.
401(k) Savings Plan to Travelers Group 401(k) Savings Plan and The Travelers
Inc. Common Stock Fund changed its name to Travelers Group Inc. Common Stock
Fund.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Accounting Method
The financial statements of the Plan have been prepared on the accrual
basis of accounting.
(b) Investment Valuation and Income Recognition
The following listing details the determination of the fair value of each
of the Plan's investments at year end:
The shares of common stock held by the Travelers Common Stock Fund,
TAP Common Stock Fund and American Express Common Stock Fund are valued at
the last reported sale price on the New York Stock Exchange for the last
business day of the year.
The shares of the following registered investment companies are valued
at the net asset value per share as of December 31, 1996 and 1995, as
determined by Van Kampen American Capital:
VAN KAMPEN AMERICAN CAPITAL COMSTOCK FUND
VAN KAMPEN AMERICAN CAPITAL EMERGING GROWTH FUND
VAN KAMPEN AMERICAN CAPITAL ENTERPRISE FUND
VAN KAMPEN AMERICAN CAPITAL GOVERNMENT SECURITIES FUND
VAN KAMPEN AMERICAN CAPITAL RESERVE FUND
COMMON SENSE GOVERNMENT FUND
COMMON SENSE GROWTH & INCOME FUND
COMMON SENSE GROWTH FUND
COMMON SENSE MONEY MARKET FUND
8
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The shares of the following registered investment companies are valued
at the net asset value per share as of December 31, 1996 and 1995, as
determined by Smith Barney Mutual Funds Management Inc.:
SMITH BARNEY EQUITY INCOME FUND
SMITH BARNEY INTERNATIONAL EQUITY FUND
SMITH BARNEY MONEY FUND
SMITH BARNEY AGGRESSIVE GROWTH FUND
SMITH BARNEY APPRECIATION FUND
SMITH BARNEY DIVERSIFIED STRATEGIC INCOME FUND
SMITH BARNEY UTILITIES FUND
SMITH BARNEY U.S. GOVERNMENT SECURITIES FUND
SMITH BARNEY SPECIAL EQUITIES FUND
SMITH BARNEY MANAGED GROWTH FUND
The shares of the following registered investment companies are valued
at the net asset value per share as of December 31, 1996, as determined by
the Copeland Administrative Operations Inc.:
AMERICAN ODYSSEY CORE EQUITY FUND
AMERICAN ODYSSEY EMERGING FUND
AMERICAN ODYSSEY INTERNATIONAL FUND
AMERICAN ODYSSEY LONG-TERM BOND FUND
AMERICAN ODYSSEY INTERMEDIATE-TERM BOND FUND
AMERICAN ODYSSEY SHORT-TERM BOND FUND
AMERICAN ODYSSEY IN-TIME INVESTING FUNDS
The shares of the following registered investment companies are valued at
the net asset value per share as of December 31, 1996, as determined by the
State Street Bank & Trust Company:
S&P 500 Flagship Fund
Russell 2000 Fund
Short-term money market investments, the Loan Fund and the Deferred
Profit Sharing Plan are valued at cost plus earned interest which
approximates fair value. Guaranteed investment contracts, which are included
in the guaranteed income funds, are valued at contract value which
approximates fair value. The ESOP Fund is carried at estimated fair value,
which is the greater of the minimum value of $53.25 per share, or estimated
fair value as determined from an appraisal prepared by an independent
appraiser. The Universal Life Insurance is carried at contract value, which
approximates fair value as reported to the Plan by TransAmerica Assurance
Company. Participant loans receivable are valued at cost which approximates
fair value.
A significant concentration of the Plan's assets are invested in or
managed by the Company (see note 5 regarding related party transactions).
9
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Purchases and sales of securities are recorded on a trade date basis.
Interest income is recorded on the accrual basis and is net of interest
charges incurred on ESOP debt. Dividends are recorded on the ex-dividend date.
Net appreciation in the fair value of investments includes the Plan's
investments bought, sold and held during the year.
(c) Payment of Benefits
Benefits are recorded when paid.
(d) Use of Estimates in the Preparation of the Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles requires the Plan Administrator to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of revenues and expenses
during the accounting period. Actual results could differ from those
estimates.
(e) Reclassification
Certain reclassifications have been made to prior year's financial
statements to conform to the current year's presentation.
3. INVESTMENTS
During the years ended December 31, 1996 and 1995, the Plan's investments
(including investments bought, sold and held) appreciated in value by
$421,845,008 and $238,944,182, respectively, as follows:
<TABLE>
<CAPTION>
1996 1995
-------------- -------------
<S> <C> <C>
Stock funds $ 294,827,004 $ 169,831,278
Mutual funds 127,018,004 69,112,904
-------------- -------------
$ 421,845,008 $ 238,944,182
-------------- -------------
-------------- -------------
</TABLE>
10
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
3. INVESTMENTS (CONTINUED)
A summary of the investments in the Plan as of December 31, 1996 and 1995
is listed below. "Funds not yet invested" represent the line item "cash" on
the accompanying statements of net assets available for plan benefits. Such
amounts are included in a short-term liquid reserve fund pending allocation
to the appropriate investment funds.
<TABLE>
<CAPTION>
1996 INVESTMENT FUND COST VALUE
- -------------------------------------------------------------- ------------- --------------
<S> <C> <C>
Deferred Profit Sharing Plan
Invested $ 69,738 $ 69,738
------------- --------------
Total 69,738 69,738
------------- --------------
Travelers Common Stock Fund
Invested 332,313,775 871,309,221
Funds not yet invested 1,363,307 1,363,307
------------- --------------
Total 333,677,082 872,672,528
------------- --------------
American Express Common Stock Fund
Invested 45,233,192 92,516,434
Funds not yet invested 6,046 6,046
------------- --------------
Total 45,239,238 92,522,480
------------- --------------
Van Kampen American Capital Reserve Fund
Invested 11,293,897 11,293,897
Funds not yet invested 72 72
------------- --------------
Total 11,293,969 11,293,969
------------- --------------
Van Kampen American Capital Enterprise Fund
Invested 35,088,837 40,325,261
Funds not yet invested 781 781
------------- --------------
Total 35,089,618 40,326,042
------------- --------------
Van Kampen American Capital Government Securities Fund
Invested 4,960,687 4,800,137
Funds not yet invested 31 31
------------- --------------
Total 4,960,718 4,800,168
------------- --------------
Van Kampen American Capital Comstock Fund
Invested 12,065,019 11,538,961
Funds not yet invested 89 89
------------- --------------
Total 12,065,108 11,539,050
------------- --------------
</TABLE>
11
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
3. INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
1996 INVESTMENT FUND COST VALUE
- -------------------------------------------------------------- ------------- --------------
<S> <C> <C>
Van Kampen American Capital Emerging Growth Fund
Invested $ 93,333,932 $ 115,878,893
Funds not yet invested 683 683
------------- --------------
Total 93,334,615 115,879,576
------------- --------------
Common Sense Money Market Fund
Invested 2,424,328 2,424,328
Funds not yet invested 102 102
------------- --------------
Total 2,424,430 2,424,430
------------- --------------
Common Sense Government Fund
Invested 897,874 848,658
Funds not yet invested 15 15
------------- --------------
Total 897,889 848,673
------------- --------------
Common Sense Growth & Income Fund
Invested 3,261,771 3,460,659
Funds not yet invested 827 827
------------- --------------
Total 3,262,598 3,461,486
------------- --------------
Common Sense Growth Fund
Invested 3,675,207 4,094,073
Funds not yet invested 41 41
------------- --------------
Total 3,675,248 4,094,114
------------- --------------
Smith Barney Equity Income Fund
Invested 100,026,545 113,137,894
Funds not yet invested 108,145 108,145
------------- --------------
Total 100,134,690 113,246,039
------------- --------------
Smith Barney U.S. Government Securities Fund
Invested 19,656,510 19,514,448
Funds not yet invested 28,106 28,106
------------- --------------
Total 19,684,616 19,542,554
------------- --------------
</TABLE>
12
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
3. INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
1996 INVESTMENT FUND COST VALUE
- -------------------------------------------------------------- ------------- --------------
<S> <C> <C>
Smith Barney Income Return Fund
Funds not yet invested $ 500 $ 500
------------- --------------
Total 500 500
------------- --------------
Smith Barney Money Fund
Invested 36,960,963 36,960,963
Funds not yet invested 782 782
------------- --------------
Total 36,961,745 36,961,745
------------- --------------
Smith Barney International Equity Fund
Invested 108,446,719 123,570,164
Funds not yet invested 120,492 120,492
------------- --------------
Total 108,567,211 123,690,656
------------- --------------
Smith Barney High Income Fund
Funds not yet invested 682 682
------------- --------------
Total 682 682
------------- --------------
Smith Barney Aggressive Growth Fund
Invested 25,469,615 33,026,655
Funds not yet invested 807 807
------------- --------------
Total 25,470,422 33,027,462
------------- --------------
Smith Barney Appreciation Fund
Invested 121,128,556 153,001,216
------------- --------------
Total 121,128,556 153,001,216
------------- --------------
Smith Barney Diversified Strategic Income Fund
Invested 17,350,256 17,442,154
Funds not yet invested 846 846
------------- --------------
Total 17,351,102 17,443,000
------------- --------------
</TABLE>
13
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
3. INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
1996 INVESTMENT FUND COST VALUE
- -------------------------------------------------------------- ------------- --------------
<S> <C> <C>
Smith Barney Utilities Fund
Invested $ 12,770,411 $ 13,271,144
Funds not yet invested 30,120 30,120
------------- -------------
Total 12,800,531 13,301,264
------------- -------------
Smith Barney Guaranteed Income Fund
Invested 146,832,175 146,832,175
Funds not yet invested 160,998 160,998
------------- -------------
Total 146,993,173 146,993,173
------------- -------------
Smith Barney Special Equities Fund
Invested 13,533,860 12,672,596
Funds not yet invested 770 770
------------ -------------
Total 13,534,630 12,673,366
------------- -------------
Smith Barney Managed Growth Fund
Invested 20,348,755 22,293,836
Funds not yet invested 757 757
------------- -------------
Total 20,349,512 22,294,593
------------ -------------
Term Interest Guarantee Contracts
Invested 9,842,206 9,842,206
------------- -------------
Total 9,842,206 9,842,206
------------- -------------
Universal Life Insurance
Invested 42,020 42,020
------------- -------------
Total 42,020 42,020
------------- -------------
American Odyssey Core Equity Fund
Invested 6,580,650 7,370,760
------------- -------------
Total 6,580,650 7,370,760
------------- -------------
American Odyssey Emerging Fund
Invested 4,329,452 5,117,401
------------- -------------
Total 4,329,452 5,117,401
------------- -------------
</TABLE>
14
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
3. INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
1996 INVESTMENT FUND COST VALUE
- -------------------------------------------------------------- -------------- ----------------
<S> <C> <C>
American Odyssey International Fund
Invested $ 4,143,706 $ 4,328,109
-------------- ----------------
Total 4,143,706 4,328,109
-------------- ----------------
American Odyssey Long-Term Bond Fund
Invested 944,780 1,020,989
-------------- ----------------
Total 944,780 1,020,989
-------------- ----------------
American Odyssey Intermediate-Term Bond Fund
Invested 572,788 588,449
-------------- ----------------
Total 572,788 588,449
-------------- ----------------
American Odyssey Short-Term Bond Fund
Invested 336,584 333,958
-------------- ----------------
Total 336,584 333,958
-------------- ----------------
American Odyssey Core Equity Fund-In-Time
Investing Funds
Invested 529,017 522,823
-------------- ----------------
Total 529,017 522,823
-------------- ----------------
American Odyssey Short-Term Bond Fund-In-Time
Investing Funds
Invested 132,401 130,850
-------------- ----------------
Total 132,401 130,850
-------------- ----------------
TESIP Fixed Fund
Invested 396,851,788 396,851,788
-------------- ----------------
Total 396,851,788 396,851,788
-------------- ----------------
Fixed IRA Fund
Invested 61,959,660 61,959,660
-------------- ----------------
Total 61,959,660 61,959,660
-------------- ----------------
Russell 2000 Fund
Invested 34,169,822 46,096,698
Funds not yet invested 182 182
-------------- ----------------
Total 34,170,004 46,096,880
-------------- ----------------
15
</TABLE>
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
3. INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
1996 INVESTMENT FUND COST VALUE
- ----------------------------------------------------------------------------- ---------------- ----------------
<S> <C> <C>
S&P 500 Flagship Fund
Invested $ 52,460,900 $ 79,731,555
Funds not yet invested 598 598
---------------- ----------------
Total 52,461,498 79,732,153
---------------- ----------------
ESOP Fund
Invested 164,521,877 251,168,817
Funds not yet invested 7,579,000 7,579,000
---------------- ----------------
Total 172,100,877 258,747,817
---------------- ----------------
Stable Fund
Invested 18,263,998 18,263,998
---------------- ----------------
Total 18,263,998 18,263,998
---------------- ----------------
TAP Common Stock Fund
Invested 45,529,053 67,457,543
Funds not yet invested 1,176 1,176
---------------- ----------------
Total 45,530,229 67,458,719
---------------- ----------------
Loan Fund
Invested 66,269,195 66,269,195
---------------- ----------------
Total 66,269,195 66,269,195
---------------- ----------------
1996 Total Investments $ 2,044,028,474 $ 2,876,786,279
---------------- ----------------
---------------- ----------------
1995 INVESTMENT FUNDS
- ---------------------
Travelers Common Stock Fund
Invested $ 151,907,915 $ 304,814,224
Funds not yet invested 655,686 655,686
---------------- ----------------
Total 152,563,601 305,469,910
---------------- ----------------
Van Kampen American Capital Reserve Fund
Invested 11,496,598 11,496,598
Funds not yet invested 2,563 2,563
---------------- ----------------
Total 11,499,161 11,499,161
---------------- ----------------
</TABLE>
16
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
3. INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
1995 INVESTMENT FUNDS COST VALUE
- ----------------------------------------------------------------------------- ---------------- ----------------
<S> <C> <C>
Van Kampen American Capital Government Securities Fund
Invested $ 5,140,310 $ 5,150,591
Funds not yet invested 1,250 1,250
---------------- ----------------
Total 5,141,560 5,151,841
---------------- ----------------
Van Kampen American Capital Comstock Fund
Invested 10,272,639 9,525,110
Funds not yet invested 1,967 1,967
---------------- ----------------
Total 10,274,606 9,527,077
---------------- ----------------
Van Kampen American Capital Emerging Growth Fund
Invested 72,433,796 85,204,531
Funds not yet invested 3,639 3,639
---------------- ----------------
Total 72,437,435 85,208,170
---------------- ----------------
Common Sense Money Market Fund
Invested 2,732,191 2,732,189
Funds not yet invested 1,133 1,133
---------------- ----------------
Total 2,733,324 2,733,322
---------------- ----------------
Common Sense Government Fund
Invested 910,107 887,600
Funds not yet invested 575 575
---------------- ----------------
Total 910,682 888,175
---------------- ----------------
Common Sense Growth & Income Fund
Invested 3,069,018 3,233,904
Funds not yet invested 946 946
---------------- ----------------
Total 3,069,964 3,234,850
---------------- ----------------
Common Sense Growth Fund
Invested 3,782,938 3,927,164
Funds not yet invested 1,101 1,101
---------------- ----------------
Total 3,784,039 3,928,265
---------------- ----------------
Loan Fund
Invested 39,611,649 39,611,649
---------------- ----------------
Total 39,611,649 39,611,649
---------------- ----------------
</TABLE>
17
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
3. INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
1995 INVESTMENT FUNDS COST VALUE
- ----------------------------------------------------------------------------- ---------------- ----------------
<S> <C> <C>
Smith Barney Income and Growth Fund
Invested $ 85,293,431 $ 98,655,385
Funds not yet invested 810 810
---------------- ----------------
Total 85,294,241 98,656,195
---------------- ----------------
Smith Barney U.S. Government Securities Fund
Invested 20,582,957 20,923,181
Funds not yet invested 900 900
---------------- ----------------
Total 20,583,857 20,924,081
---------------- ----------------
Smith Barney Income Return Fund
Invested 5,706,488 5,768,707
Funds not yet invested 883 883
---------------- ----------------
Total 5,707,371 5,769,590
---------------- ----------------
Smith Barney Money Fund
Invested 31,271,665 31,271,665
Funds not yet invested 887 887
---------------- ----------------
Total 31,272,552 31,272,552
---------------- ----------------
Smith Barney International Equity Fund
Invested 93,116,193 94,757,657
Funds not yet invested 773 773
---------------- ----------------
Total 93,116,966 94,758,430
---------------- ----------------
Van Kampen American Capital Enterprise Fund
Invested 26,717,625 27,640,186
Funds not yet invested 797 797
---------------- ----------------
Total 26,718,422 27,640,983
---------------- ----------------
Smith Barney High Income Fund
Invested 9,123,829 8,670,973
Funds not yet invested 816 816
---------------- ----------------
Total 9,124,645 8,671,789
---------------- ----------------
Smith Barney Aggressive Growth Fund
Invested 24,577,162 33,112,710
Funds not yet invested 839 839
---------------- ----------------
Total 24,578,001 33,113,549
---------------- ----------------
Smith Barney Appreciation Fund
Invested 106,488,345 131,250,468
Funds not yet invested 815 815
---------------- ----------------
Total 106,489,160 131,251,283
---------------- ----------------
</TABLE>
18
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
3. INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
1995 INVESTMENT FUNDS COST VALUE
- ----------------------------------------------------------------------------- ---------------- ----------------
<S> <C> <C>
Smith Barney Diversified Strategic Income Fund
Invested $ 14,507,017 $ 14,289,961
Funds not yet invested 656 656
---------------- ----------------
Total 14,507,673 14,290,617
---------------- ----------------
Smith Barney Utilities Fund
Invested 13,433,904 14,843,236
Funds not yet invested 987 987
---------------- ----------------
Total 13,434,891 14,844,223
---------------- ----------------
Smith Barney Guaranteed Income Fund
Invested 142,873,227 142,873,227
Funds not yet invested 9,071 9,071
---------------- ----------------
Total 142,882,298 142,882,298
---------------- ----------------
American Express Common Stock Fund
Invested 59,124,871 87,464,433
Funds not yet invested 32,060 32,060
---------------- ----------------
Total 59,156,931 87,496,493
---------------- ----------------
Deferred Profit Sharing Plan
Invested 66,429 66,429
---------------- ----------------
Total 66,429 66,429
---------------- ----------------
Smith Barney Special Equities Fund
Invested 4,974,942 5,364,534
Funds not yet invested 875 875
---------------- ----------------
Total 4,975,817 5,365,409
---------------- ----------------
Smith Barney Managed Growth Fund
Invested 9,817,140 10,039,358
Funds not yet invested 623 623
---------------- ----------------
Total 9,817,763 10,039,981
---------------- ----------------
1995 Total Investments $ 949,753,038 $ 1,194,296,322
---------------- ----------------
---------------- ----------------
</TABLE>
4. FEDERAL INCOME TAX CONSEQUENCES
On November 1, 1996, the Internal Revenue Service issued a determination
letter approving the continued exemption of the Plan, as amended and restated as
of June 1, 1996, and its underlying trusts from federal income taxes under the
Code. In the opinion of the Plan Administrator and the Plan's legal counsel, the
Plan and its trusts are operated within the terms of the Plan and in compliance
with the applicable rules of the Code.
19
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
4. FEDERAL INCOME TAX CONSEQUENCES (CONTINUED)
Matching employer contributions, pre-tax contributions, discount
contributions and the Plan earnings on all contributions are not taxable to
participants until they are withdrawn by or distributed to the participants.
Also, unrealized appreciation on shares of Travelers common stock,
Travelers Property Casualty Corp. common stock and American Express common
stock distributed in a qualifying lump-sum distribution is not taxable at the
time of distribution.
5. RELATED PARTY TRANSACTIONS
Certain Plan investments are shares of stock issued by Travelers or its
subsidiaries. Travelers is the Plan sponsor as defined by the Plan and,
therefore, these transactions qualify as party-in-interest. These
transactions are exempt under ERISA section 408(e)(3) given that the Plan is
an eligible individual account plan as defined by ERISA.
Certain Plan investments are shares of registered investment companies
(mutual funds, stock funds and investment contracts) that are valued by Smith
Barney Mutual Fund Management Inc. ("SB Mutual") and, therefore, would qualify
SB Mutual as a party-in-interest.
Substantially all transactions of the Copeland portion of the Plan involved
related parties as the manager of, transfer agent of and dividend disbursement
agent for the American Odyssey Funds. Copeland is an indirect wholly owned
subsidiary of Travelers. The Travelers Insurance Company, which issued group
annuity contracts held by the Plan trustee and provides recordkeeping and other
administrative services regarding the Plan, is also an indirect wholly owned
subsidiary of Travelers.
6. NET ASSETS AVAILABLE FOR PLAN BENEFITS
Net assets available for plan benefits as of December 31, 1996 and 1995
consist of the following:
<TABLE>
<CAPTION>
1996 1995
---------------- ----------------
<S> <C> <C>
Vested Benefits.......................................... $ 2,799,262,457 $ 1,195,529,373
Non-Vested Benefits...................................... 60,236,831 20,264,173
---------------- ----------------
Total.................................................... $ 2,859,499,288 $ 1,215,793,546
---------------- ----------------
---------------- ----------------
</TABLE>
Non-vested benefits are comprised of employer contributions for those
participants whose initial date of employment is on or after January 1, 1992
and, therefore, have not rendered five years of service. As a result, these
benefits are subject to forfeiture. Forfeitures will be used by Travelers to
reduce any future employer contributions. For the years ended December 31, 1996
and 1995, employer contributions were reduced by approximately $5,899,000 and
$1,706,000, respectively for forfeitures.
20
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
7. SUBSEQUENT EVENTS
As of January 1, 1997, the employer contribution match of up to a maximum of
$1,000 is no longer effective. In 1997, Travelers will contribute $350 to all
full-time employees earning less than $40,000 per annum who are with the Company
as of December 31, 1996 through December 31, 1997. A similar amount of $175 will
be contributed to all part-time employees with the Company as of December 31,
1996 through December 31, 1997. Employees earning $40,000 per annum or greater
will not be eligible to receive any employer matching contribution.
21
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
8. INVESTMENT ALLOCATION WITH FUND INFORMATION
Employee, employer, and rollover contributions are invested in various funds
as indicated in notes 2 and 3. These contributions are directed to each fund at
the discretion of the individual participant. Net assets available for plan
benefits and changes in net assets available for plan benefits, by fund, are as
follows:
<TABLE>
<CAPTION>
DECEMBER 31, 1996
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
VAN KAMPEN VAN KAMPEN VAN KAMPEN
TRAVELERS AMERICAN CAPITAL AMERICAN CAPITAL AMERICAN CAPITAL
COMMON STOCK EMERGING GOVERNMENT COMSTOCK
FUND GROWTH FUND SECURITIES FUND FUND
------------ ---------------- ---------------- ----------------
Assets
- ------
Investments (notes 2 and 3)....................... $871,309,221 115,878,893 4,800,137 11,538,961
Cash.............................................. 1,363,307 683 31 89
Receivables:
Contributions.................................... 17,548,498 18,780 115 3,947
Dividends and other.............................. 739,684 183 2 18
------------ ---------------- ---------------- ----------------
Total receivables............................... 18,288,182 18,963 117 3,965
------------ ---------------- ---------------- ----------------
Total assets................................... 890,960,710 115,898,539 4,800,285 11,543,015
------------ ---------------- ---------------- ----------------
Liabilities
- -----------
Forfeiture credits due to employer................ -- -- -- --
ESOP note payable................................. -- -- -- --
Payable for investment purchases.................. 2,312,421 -- -- --
------------ ---------------- ---------------- ----------------
Net assets available for plan benefits............ $888,648,289 115,898,539 4,800,285 11,543,015
------------ ---------------- ---------------- ----------------
------------ ---------------- ---------------- ----------------
Investment activity:
Dividends........................................ 8,458,995 5,006,897 330,011 1,917,568
Interest......................................... 35,216 2,444 192 291
Appreciation (depreciation) in fair value of
investments..................................... 267,605,848 11,694,267 (222,974) 219,289
------------ ---------------- ---------------- ----------------
276,100,059 16,703,608 107,229 2,137,148
Less: Trustee/administrative expenses............. (451,621) (111,678) (11,359) (20,574)
------------ ---------------- ---------------- ----------------
Net investment income (loss)..................... 275,648,438 16,591,930 95,870 2,116,574
------------ ---------------- ---------------- ----------------
Contributions:
Participant...................................... 36,167,440 18,619,707 567,269 986,703
Employer (note 6)................................ 18,690,492 -- -- --
------------ ---------------- ---------------- ----------------
Total contributions............................. 54,857,932 18,619,707 567,269 986,703
------------ ---------------- ---------------- ----------------
Distributions to participants..................... (48,266,088) (7,591,396) (416,287) (669,842)
Loan activity, net................................ (1,051,775) (454,588) (20,998) (40,783)
Transfers from (to) other funds................... 23,516,525 3,367,062 (586,618) (396,158)
------------ ---------------- ---------------- ----------------
Net increase (decrease).......................... 304,705,032 30,532,715 (360,764) 1,996,494
------------ ---------------- ---------------- ----------------
Net assets available for plan benefits:
Beginning of year................................ 326,637,197 85,365,824 5,161,049 9,546,521
Transfers from (to) other plans (note 1)......... 257,306,060 -- -- --
------------ ---------------- ---------------- ----------------
End of year...................................... $888,648,289 115,898,539 4,800,285 11,543,015
------------ ---------------- ---------------- ----------------
------------ ---------------- ---------------- ----------------
<PAGE>
<CAPTION>
----------------------------------------------------------
<S> <C> <C> <C> <C>
VAN KAMPEN COMMON COMMON COMMON
AMERICAN CAPITAL SENSE SENSE SENSE
RESERVE GROWTH GROWTH & INCOME GOVERNMENT
FUND FUND FUND FUND
---------------- --------- --------------- ----------
Assets
- ------
Investments (notes 2 and 3)....................... 11,293,897 4,094,073 3,460,659 848,658
Cash.............................................. 72 41 827 15
Receivables:
Contributions.................................... 327 (675) -- (290)
Dividends and other.............................. 8 1 1 --
---------------- --------- --------------- ----------
Total receivables............................... 335 (674) 1 (290)
---------------- --------- --------------- ----------
Total assets................................... 11,294,304 4,093,440 3,461,487 848,383
---------------- --------- --------------- ----------
Liabilities
- -----------
Forfeiture credits due to employer................ -- -- -- --
ESOP note payable................................. -- -- -- --
Payable for investment purchases.................. -- -- -- --
---------------- --------- --------------- ----------
Net assets available for plan benefits............ 11,294,304 4,093,440 3,461,487 848,383
---------------- --------- --------------- ----------
---------------- --------- --------------- ----------
Investment activity:
Dividends........................................ 502,322 -- 41,430 60,340
Interest......................................... 473 218 124 51
Appreciation (depreciation) in fair value of
investments..................................... -- 374,253 95,040 (43,309)
---------------- --------- --------------- ----------
502,795 374,471 136,594 17,082
Less: Trustee/administrative expenses............. (22,771) (10,077) (8,952) (4,450)
---------------- --------- --------------- ----------
Net investment income (loss)..................... 480,024 364,394 127,642 12,632
---------------- --------- --------------- ----------
Contributions:
Participant...................................... 665,005 395,981 334,083 74,960
Employer (note 6)................................ -- -- -- --
---------------- --------- --------------- ----------
Total contributions............................. 665,005 395,981 334,083 74,960
---------------- --------- --------------- ----------
Distributions to participants..................... (849,439) (381,487) (161,536) (64,444)
Loan activity, net................................ (89,005) (61,552) (52,313) (7,935)
Transfers from (to) other funds................... (375,565) (152,162) (26,275) (49,971)
---------------- --------- --------------- ----------
Net increase (decrease).......................... (168,980) 165,174 221,601 (34,758)
---------------- --------- --------------- ----------
Net assets available for plan benefits:
Beginning of year................................ 11,463,284 3,928,266 3,239,886 883,141
Transfers from (to) other plans (note 1)......... -- -- -- --
---------------- --------- --------------- ----------
End of year...................................... 11,294,304 4,093,440 3,461,487 848,383
---------------- --------- --------------- ----------
---------------- --------- --------------- ----------
</TABLE>
22
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
8. INVESTMENT ALLOCATION WITH FUND INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
DECEMBER 31, 1996
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
COMMON SMITH BARNEY SMITH BARNEY VAN KAMPEN AMERICAN
SENSE U.S. GOVERNMENT INCOME AMERICAN CAPITAL EXPRESS
MONEY MARKET SECURITIES RETURN ENTERPRISE COMMON
FUND FUND FUND FUND STOCK FUND
------------ --------------- ------------ ---------------- ----------
Assets
- ------
Investments (notes 2 and 3)....................... $2,424,328 19,514,448 -- 40,325,261 92,516,434
Cash.............................................. 102 28,106 500 781 6,046
Receivables:
Contributions.................................... (45) (354) -- 20,322 --
Dividends and other.............................. 1 546,928 3,604,057 82 2,044,659
------------ --------------- ------------ ---------------- ----------
Total receivables............................... (44) 546,574 3,604,057 20,404 2,044,659
------------ --------------- ------------ ---------------- ----------
Total assets................................... 2,424,386 20,089,128 3,604,557 40,346,446 94,567,139
------------ --------------- ------------ ---------------- ----------
Liabilities
- -----------
Forfeiture credits due to employer................ -- -- -- -- --
ESOP note payable................................. -- -- -- -- --
Payable for investment purchases.................. -- -- -- -- --
----------- --------------- ------------ ---------------- ----------
Net assets available for plan benefits............ $2,424,386 20,089,128 3,604,557 40,346,446 94,567,139
----------- --------------- ------------ ---------------- ----------
----------- --------------- ------------ ---------------- ----------
Investment activity:
Dividends........................................ 111,424 1,415,811 271,346 2,437,673 2,173,442
Interest......................................... 222 426 113 700 2,358
Appreciation (depreciation) in fair value of
investments..................................... -- (529,098) (64,620) 4,670,407 27,221,156
------------ --------------- ------------ ---------------- ----------
111,646 887,139 206,839 7,108,780 29,396,956
Less: Trustee/administrative expenses............. (7,341) (24,540) (9,516) (35,622) (105,795)
------------ --------------- ------------ ---------------- ----------
Net investment income (loss)..................... 104,305 862,599 197,323 7,073,158 29,291,161
----------- --------------- ------------ ---------------- ----------
Contributions:
Participant...................................... 121,362 1,877,256 -- 5,593,630 --
Employer (note 6)................................ -- -- -- -- --
------------ --------------- ------------ ---------------- ----------
Total contributions............................. 121,362 1,877,256 -- 5,593,630 --
------------ --------------- ------------ ---------------- ----------
Distributions to participants..................... (172,303) (2,019,429) (207,379) (2,503,146) (6,916,999)
Loan activity, net................................ (10,274) (38,951) (23,333) 15,127 (713,583)
Transfers from (to) other funds................... (352,029) (1,518,873) (2,131,687) 2,516,439 (14,590,016)
------------ --------------- ------------ ---------------- ----------
Net increase (decrease).......................... (308,939) (837,398) (2,165,076) 12,695,208 7,070,563
------------ --------------- ------------ ---------------- ----------
Net assets available for plan benefits:
Beginning of year................................ 2,733,325 20,926,526 5,769,633 27,651,238 87,496,576
Transfers from (to) other plans (note 1)......... -- -- -- -- --
------------ --------------- ------------ ---------------- ----------
End of year...................................... $2,424,386 20,089,128 3,604,557 40,346,446 94,567,139
------------ --------------- ------------ ---------------- ----------
------------ --------------- ------------ ---------------- ----------
<PAGE>
<CAPTION>
-------------------------------------------
<S> <C> <C> <C>
SMITH BARNEY
SMITH BARNEY AGGRESSIVE SMITH BARNEY
MONEY GROWTH APPRECIATION
FUND FUND FUND
------------ ------------ ------------
Assets
- ------
Investments (notes 2 and 3)....................... 36,960,963 33,026,655 153,001,216
Cash.............................................. 782 807 --
Receivables:
Contributions.................................... 97,306 2,617 38,019
Dividends and other.............................. 84 56 628,000
------------ ------------ ------------
Total receivables................................ 97,390 2,673 666,019
------------ ------------ ------------
Total assets.................................... 37,059,135 33,030,135 153,667,235
------------ ------------ ------------
Liabilities
- -----------
Forfeiture credits due to employer................ -- -- --
ESOP note payable................................. -- -- --
Payable for investment purchases.................. -- -- --
----------- ----------- -------------
Net assets available for plan benefits............ 37,059,135 33,030,135 153,667,235
----------- ----------- -------------
----------- ----------- -------------
Investment activity:
Dividends........................................ 1,696,780 844,945 15,083,390
Interest......................................... 1,172 715 2,676
Appreciation (depreciation) in fair value of
investments..................................... -- 141,351 10,769,409
------------ ------------ ------------
1,697,952 987,011 25,855,475
Less: Trustee/administrative expenses............. (37,035) (35,809) (133,592)
------------ ------------ ------------
Net investment income (loss)..................... 1,660,917 951,202 25,721,883
----------- ----------- -------------
Contributions:
Participant...................................... 4,083,746 4,094,778 14,193,571
Employer (note 6)................................ -- -- --
------------ ------------ ------------
Total contributions............................. 4,083,746 4,094,778 14,193,571
------------ ------------ ------------
Distributions to participants..................... (3,577,926) (2,347,107) (9,179,803)
Loan activity, net................................ (145,104) (306,909) (1,030,387)
Transfers from (to) other funds................... 3,653,749 (2,484,570) (7,298,885)
------------ ------------ ------------
Net increase (decrease).......................... 5,675,382 (92,606) 22,406,379
------------ ------------ ------------
Net assets available for plan benefits:
Beginning of year................................ 31,383,753 33,122,741 131,260,856
Transfers from (to) other plans (note 1)......... -- -- --
------------ ------------ ------------
End of year...................................... 37,059,135 33,030,135 153,667,235
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
23
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
8. INVESTMENT ALLOCATION WITH FUND INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
DECEMBER 31, 1996
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SMITH BARNEY SMITH BARNEY SMITH BARNEY
INTERNATIONAL DIVERSIFIED SMITH BARNEY GUARANTEED
EQUITY STRATEGIC HIGH SMITH BARNEY INCOME
FUND INCOME FUND INCOME FUND UTILITIES FUND FUND
------------- ------------ ------------ -------------- ------------
Assets
- ------
Investments (notes 2 and 3)....................... $123,570,164 17,442,154 -- 13,271,144 146,832,175
Cash.............................................. 120,492 846 682 30,120 160,998
Receivables:
Contributions.................................... 17,537 277 -- 690 8
Dividends and other.............................. 54,598 25 4,598,892 406,322 1,476
------------- ------------ ------------ -------------- ------------
Total receivables............................... 72,135 302 4,598,892 407,012 1,484
------------- ------------ ------------ -------------- ------------
Total assets................................... 123,762,791 17,443,302 4,599,574 13,708,276 146,994,657
------------- ------------ ------------ -------------- ------------
Liabilities
- -----------
Forfeiture credits due to employer................ -- -- -- -- --
ESOP note payable................................. -- -- -- -- --
Payable for investment purchases.................. -- -- -- -- --
------------- ------------ ------------ -------------- ------------
Net assets available for plan benefits............ $123,762,791 17,443,302 4,599,574 13,708,276 146,994,657
------------- ------------ ------------ -------------- ------------
------------- ------------ ------------ -------------- ------------
Investment activity:
Dividends........................................ 391,248 1,392,575 748,818 1,126,628 --
Interest......................................... 2,001 435 214 410 10,277,198
Appreciation (depreciation) in fair value of
investments..................................... 14,211,070 279,985 133,944 (781,740) --
------------- ------------ ------------ -------------- ------------
14,604,319 1,672,995 882,976 345,298 10,277,198
Less: Trustee/administrative expenses............. (108,933) (19,984) (11,894) (18,744) (528,595)
------------- ------------ ------------ -------------- ------------
Net investment income (loss)..................... 14,495,386 1,653,011 871,082 326,554 9,748,603
------------- ------------ ------------ -------------- ------------
Contributions:
Participant...................................... 18,520,479 2,590,957 -- 2,186,049 10,191,617
Employer (note 6)................................ -- -- -- -- --
------------- ------------ ------------ -------------- ------------
Total contributions............................. 18,520,479 2,590,957 -- 2,186,049 10,191,617
------------- ------------ ------------ -------------- ------------
Distributions to participants..................... (7,551,649) (1,407,760) (536,801) (952,954) (8,386,682)
Loan activity, net................................ (322,629) (25,131) (129,240) (124,350) (838,047)
Transfers from (to) other funds................... 3,851,104 341,746 (4,277,315) (2,577,182) (6,599,307)
------------- ------------ ------------ -------------- ------------
Net increase (decrease).......................... 28,992,691 3,152,823 (4,072,274) (1,141,883) 4,116,184
------------- ------------ ------------ -------------- ------------
Net assets available for plan benefits:
Beginning of year................................ 94,770,100 14,290,479 8,671,848 14,850,159 142,878,473
Transfers from (to) other plans (note 1)......... -- -- -- -- --
------------- ------------ ------------ -------------- ------------
End of year...................................... $123,762,791 17,443,302 4,599,574 13,708,276 146,994,657
------------- ------------ ------------ -------------- ------------
------------- ------------ ------------ -------------- ------------
<PAGE>
<CAPTION>
------------------------------------------
<S> <C> <C> <C>
SMITH BARNEY SMITH BARNEY SMITH BARNEY
EQUITY SPECIAL MANAGED
INCOME EQUITIES GROWTH
FUND FUND FUND
------------ ------------ ------------
Assets
- ------
Investments (notes 2 and 3)....................... 113,137,894 12,672,596 22,293,836
Cash.............................................. 108,145 770 757
Receivables:
Contributions.................................... 21,814 16,568 3,502
Dividends and other.............................. 333,308 43 34
------------ ------------ ------------
Total receivables............................... 355,122 16,611 3,536
------------ ------------ ------------
Total assets................................... 113,601,161 12,689,977 22,298,129
------------ ------------ ------------
Liabilities
- -----------
Forfeiture credits due to employer................ -- -- --
ESOP note payable................................. -- -- --
Payable for investment purchases.................. -- -- --
------------ ------------ ------------
Net assets available for plan benefits............ 113,601,161 12,689,977 22,298,129
------------ ------------ ------------
------------ ------------ ------------
Investment activity:
Dividends........................................ 15,059,620 273,518 934,257
Interest......................................... 2,043 283 389
Appreciation (depreciation) in fair value of
investments..................................... 1,378,843 (1,256,214) 1,755,064
------------ ------------ ------------
16,440,506 (982,413) 2,689,710
Less: Trustee/administrative expenses............. (102,036) (14,778) (20,052)
------------ ------------ ------------
Net investment income (loss)..................... 16,338,470 (997,191) 2,669,658
------------ ------------ ------------
Contributions:
Participant...................................... 8,546,997 3,206,465 3,262,947
Employer (note 6)................................ -- -- --
------------ ------------ ------------
Total contributions............................. 8,546,997 3,206,465 3,262,947
------------ ------------ ------------
Distributions to participants..................... (6,873,477) (497,096) (650,751)
Loan activity, net................................ (280,788) 60,728 90,261
Transfers from (to) other funds................... (2,789,934) 5,541,901 6,876,484
------------ ------------ ------------
Net increase (decrease).......................... 14,941,268 7,314,807 12,248,599
------------ ------------ ------------
Net assets available for plan benefits:
Beginning of year................................ 98,659,893 5,375,170 10,049,530
Transfers from (to) other plans (note 1)......... -- -- --
------------ ------------ ------------
End of year...................................... 113,601,161 12,689,977 22,298,129
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
24
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
8. INVESTMENT ALLOCATION WITH FUND INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
DECEMBER 31, 1996
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
DEFERRED
PROFIT TESIP FIXED S & P 500 RUSSELL
SHARING FIXED IRA FLAGSHIP 2000 ESOP
PLAN FUND FUND FUND FUND FUND
-------- ----------- ---------- ---------- ---------- -----------
Assets
- ------
Investments (notes 2 and 3)....................... $69,738 396,851,788 61,959,660 79,731,555 46,096,698 251,168,817
Cash.............................................. -- -- -- 598 182 7,579,000
Receivables:
Contributions.................................... -- (176,285) -- 90,849 46,108 --
Dividends and other.............................. -- -- -- -- -- 47,347
-------- ----------- ---------- ---------- ---------- -----------
Total receivables............................... -- (176,285) -- 90,849 46,108 47,347
-------- ----------- ---------- ---------- ---------- -----------
Total assets................................... 69,738 396,675,503 61,959,660 79,823,002 46,142,988 258,795,164
-------- ----------- ---------- ---------- ---------- -----------
Liabilities
- -----------
Forfeiture credits due to employer................ -- -- -- -- -- 12,800,143
ESOP note payable................................. -- -- -- -- -- 34,900,000
Payable for investment purchases.................. -- 58,343 -- 7,849 4,394 150,414
-------- ----------- ---------- ---------- ---------- -----------
Net assets available for plan benefits............ $69,738 396,617,160 61,959,660 79,815,153 46,138,594 210,944,607
-------- ----------- ---------- ---------- ---------- -----------
-------- ----------- ---------- ---------- ---------- -----------
Investment activity:
Dividends........................................ 3,309 -- -- -- -- 17,593,491
Interest......................................... -- 27,351,646 4,233,052 -- -- (1,986,212)
Appreciation (depreciation) in fair value of
investments..................................... -- -- -- 14,224,959 6,410,241 40,252,473
-------- ----------- ---------- ---------- ---------- -----------
3,309 27,351,646 4,233,052 14,224,959 6,410,241 55,859,752
Less: Trustee/administrative expenses............. -- -- -- -- -- --
-------- ----------- ---------- ---------- ---------- -----------
Net investment income (loss)..................... 3,309 27,351,646 4,233,052 14,224,959 6,410,241 55,859,752
-------- ----------- ---------- ---------- ---------- -----------
Contributions:
Participant...................................... -- 4,777,710 -- 12,187,814 6,457,449 --
Employer (note 6)................................ -- -- -- -- -- 13,275,941
-------- ----------- ---------- ---------- ---------- -----------
Total contributions............................. -- 4,777,710 -- 12,187,814 6,457,449 13,275,941
-------- ----------- ---------- ---------- ---------- -----------
Distributions to participants..................... -- (42,571,721) (7,722,814) (5,441,036) (2,617,212) (14,637,596)
Loan activity, net................................ -- (358,809) -- -- -- --
Transfers from (to) other funds................... -- (908,960) -- (756,492) (133,326) 398,179
-------- ----------- ---------- ---------- ---------- -----------
Net increase (decrease).......................... 3,309 (11,710,134) (3,489,762) 20,215,245 10,117,152 54,896,276
-------- ----------- ---------- ---------- ---------- -----------
Net assets available for plan benefits:
Beginning of year................................ 66,429 -- -- -- -- --
Transfers from (to) other plans (note 1)......... -- 408,327,294 65,449,422 59,599,908 36,021,442 156,048,331
-------- ----------- ---------- ---------- ---------- -----------
End of year...................................... $69,738 396,617,160 61,959,660 79,815,153 46,138,594 210,944,607
-------- ----------- ---------- ---------- ---------- -----------
-------- ----------- ---------- ---------- ---------- -----------
<PAGE>
<CAPTION>
------------------------
<S> <C> <C>
TAP
STABLE COMMON STOCK
FUND FUND
---------- ------------
Assets
- ------
Investments (notes 2 and 3)....................... 18,263,998 67,457,543
Cash.............................................. -- 1,176
Receivables:
Contributions.................................... 178,394 --
Dividends and other.............................. -- --
---------- ------------
Total receivables............................... 178,394 --
---------- ------------
Total assets................................... 18,442,392 67,458,719
---------- ------------
Liabilities
- -----------
Forfeiture credits due to employer................ -- --
ESOP note payable................................. -- --
Payable for investment purchases.................. 54 3,438
---------- ------------
Net assets available for plan benefits............ 18,442,338 67,455,281
---------- ------------
---------- ------------
Investment activity:
Dividends........................................ -- 286,379
Interest......................................... 782,766 --
Appreciation (depreciation) in fair value of
investments..................................... -- 22,107,866
---------- ------------
782,766 22,394,245
Less: Trustee/administrative expenses............. -- --
---------- ------------
Net investment income (loss)..................... 782,766 22,394,245
---------- ------------
Contributions:
Participant...................................... 18,558,938 45,597,083
Employer (note 6)................................ -- --
---------- ------------
Total contributions............................. 18,558,938 45,597,083
---------- ------------
Distributions to participants..................... (417,988) (536,047)
Loan activity, net................................ (793,061) --
Transfers from (to) other funds................... 311,683 --
---------- ------------
Net increase (decrease).......................... 18,442,338 67,455,281
---------- ------------
Net assets available for plan benefits:
Beginning of year................................ -- --
Transfers from (to) other plans (note 1)......... -- --
---------- ------------
End of year...................................... 18,442,338 67,455,281
---------- ------------
---------- ------------
</TABLE>
25
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
8. INVESTMENT ALLOCATION WITH FUND INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
DECEMBER 31, 1996
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
TERM AMERICAN AMERICAN AMERICAN AMERICAN
INTEREST UNIVERSAL ODYSSEY ODYSSEY ODYSSEY ODYSSEY
GUARANTEE LIFE CORE EMERGING INTERNATIONAL LONG-TERM
CONTRACTS INSURANCE EQUITY FUND FUND FUND BOND FUND
---------- --------- ----------- --------- ------------- ---------
Assets
- ------
Investments (notes 2 and 3)....................... $9,842,206 42,020 7,370,760 5,117,401 4,328,109 1,020,989
Cash.............................................. -- -- -- -- -- --
Receivables:
Contributions.................................... 68,896 -- 66,816 74,740 43,956 8,949
Dividends and other.............................. -- -- 435,136 429,450 107,811 52,014
---------- --------- ----------- --------- ------------- ---------
Total receivables............................... 68,896 -- 501,952 504,190 151,767 60,963
---------- --------- ----------- --------- ------------- ---------
Total assets................................... 9,911,102 42,020 7,872,712 5,621,591 4,479,876 1,081,952
---------- --------- ----------- --------- ------------- ---------
Liabilities
- -----------
Forfeiture credits due to employer................ -- -- -- -- -- --
ESOP note payable................................. -- -- -- -- -- --
Payable for investment purchases.................. -- -- -- -- -- --
---------- --------- ----------- --------- ------------- ---------
Net assets available for plan benefits............ $9,911,102 42,020 7,872,712 5,621,591 4,479,876 1,081,952
---------- --------- ----------- --------- ------------- ---------
---------- --------- ----------- --------- ------------- ---------
Investment activity:
Dividends........................................ -- -- 437,418 429,450 107,811 52,014
Interest......................................... 807,669 2,203 -- -- -- --
Appreciation (depreciation) in fair value of
investments..................................... -- 3,971 1,021,827 (536,264) 942,576 (64,273)
---------- --------- ----------- --------- ------------- ---------
807,669 6,174 1,459,245 (106,814) 1,050,387 (12,259)
Less: Trustee/administrative expenses............ -- -- (7,832) (6,702) (4,457) (1,218)
---------- --------- ----------- --------- ------------- ---------
Net investment income (loss).................... 807,669 6,174 1,451,413 (113,516) 1,045,930 (13,477)
---------- --------- ----------- --------- ------------- ---------
Contributions:
Participant...................................... 404,797 25,228 908,249 938,324 570,487 124,202
Employer (note 6)................................ -- -- -- -- -- --
---------- --------- ----------- --------- ------------- ---------
Total contributions............................. 404,797 25,228 908,249 938,324 570,487 124,202
---------- --------- ----------- --------- ------------- ---------
Distributions to participants..................... (1,068,651) (6,468) (476,213) (287,898) (222,123) (25,487)
Loan activity, net................................ 28,279 -- -- -- -- --
Transfers from (to) other funds................... 175,894 -- 90,225 (132,028) (988) (173,733)
---------- --------- ----------- --------- ------------- ---------
Net increase (decrease).......................... 347,988 24,934 1,973,674 404,882 1,393,306 (88,495)
---------- --------- ----------- --------- ------------- ---------
Net assets available for plan benefits:
Beginning of year................................ -- -- -- -- -- --
Transfers from (to) other plans (note 1)......... 9,563,114 17,086 5,899,038 5,216,709 3,086,570 1,170,447
---------- --------- ----------- --------- ------------- ---------
End of year...................................... $9,911,102 42,020 7,872,712 5,621,591 4,479,876 1,081,952
---------- --------- ----------- --------- ------------- ---------
---------- --------- ----------- --------- ------------- ---------
<PAGE>
<CAPTION>
<S> <C> <C>
------------------------------
AMERICAN AMERICAN
ODYSSEY ODYSSEY
INTERMEDIATE-TERM SHORT-TERM
BOND FUND BOND FUND
----------------- ----------
Assets
- ------
Investments (notes 2 and 3)....................... 588,449 333,958
Cash.............................................. -- --
Receivables:
Contributions.................................... 3,361 968
Dividends and other.............................. 33,959 11,987
------- ----------
Total receivables............................... 37,320 12,955
------- ----------
Total assets................................... 625,769 346,913
------- ----------
Liabilities
- -----------
Forfeiture credits due to employer................ -- --
ESOP note payable................................. -- --
Payable for investment purchases.................. -- --
------- ----------
Net assets available for plan benefits............ 625,769 346,913
------- ----------
------- ----------
Investment activity:
Dividends........................................ 33,959 11,987
Interest......................................... -- --
Appreciation (depreciation) in fair value of
investments..................................... (481) 20,326
------- ----------
33,478 32,313
------- ----------
Less: Trustee/administrative expenses............ (705) (335)
------- ----------
Net investment income (loss).................... 32,773 31,978
------- ----------
Contributions:
Participant...................................... 67,696 10,953
Employer (note 6)................................ -- --
------- ----------
Total contributions............................. 67,696 10,953
------- ----------
Distributions to participants..................... (34,655) (41,004)
Loan activity, net................................ -- --
Transfers from (to) other funds................... (13,026) 164,212
------- ----------
Net increase (decrease).......................... 52,788 166,139
------- ----------
Net assets available for plan benefits:
Beginning of year................................ -- --
Transfers from (to) other plans (note 1)......... 572,981 180,774
------- ----------
End of year...................................... 625,769 346,913
------- ----------
------- ----------
</TABLE>
26
<PAGE>
TRAVELERS GROUP 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
8. INVESTMENT ALLOCATION WITH FUND INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
DECEMBER 31, 1996
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
IN-TIME INVESTING
------------------------
<CAPTION> AMERICAN AMERICAN
ODYSSEY ODYSSEY
CORE EQUITY SHORT-TERM PREFERRED LOAN
FUND BOND FUND STOCK FUND FUND TOTAL
----------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C>
Assets
- ------
Investments (notes 2 and 3)....................... $522,823 130,850 -- 66,269,195 2,867,380,324
Cash.............................................. -- -- -- -- 9,405,955
Receivables:
Contributions.................................... 3,613 -- 639,009 -- 18,838,337
Dividends and other.............................. 30,865 4,697 -- -- 14,111,728
----------- ---------- ---------- ---------- -------------
Total receivables............................... 34,478 4,697 639,009 -- 32,950,065
----------- ---------- ---------- ---------- -------------
Total assets................................... 557,301 135,547 639,009 66,269,195 2,909,736,344
----------- ---------- ---------- ---------- -------------
Liabilities
- -----------
Forfeiture credits due to employer................ -- -- -- -- 12,800,143
ESOP note payable................................. -- -- -- -- 34,900,000
Payable for investment purchases.................. -- -- -- -- 2,536,913
----------- ---------- ---------- ---------- -------------
Net assets available for plan benefits............ $557,301 135,547 639,009 66,269,195 2,859,499,288
----------- ---------- ---------- ---------- -------------
----------- ---------- ---------- ---------- -------------
Investment activity:
Dividends........................................ 30,865 4,697 -- -- 79,270,418
Interest......................................... -- -- -- -- 41,521,488
Appreciation (depreciation) in fair value of
investments..................................... 206,455 (396,639) -- -- 421,845,008
----------- ---------- ---------- ---------- -------------
237,320 (391,942) -- -- 542,636,914
Less: Trustee/administrative expenses............ (540) (186) -- -- (1,877,723)
----------- ---------- ---------- ---------- -------------
Net investment income (loss).................... 236,780 (392,128) -- -- 540,759,191
----------- ---------- ---------- ---------- -------------
Contributions:
Participant...................................... 44,690 9,416 -- 3,683,087 230,647,125
Employer (note 6)................................ -- -- 748,056 -- 32,714,489
----------- ---------- ---------- ---------- -------------
Total contributions............................. 44,690 9,416 748,056 3,683,087 263,361,614
----------- ---------- ---------- ---------- -------------
Distributions to participants..................... (1,226) (306) -- (5,178,877) (193,469,103)
Loan activity, net................................ -- -- -- 6,725,150 --
Transfers from (to) other funds................... (118,548) 117,039 (109,047) (2,369,547) --
----------- ---------- ---------- ---------- -------------
Net increase (decrease)......................... 161,696 (265,979) 639,009 2,859,813 610,651,702
----------- ---------- ---------- ---------- -------------
Net assets available for plan benefits:
Beginning of year................................ -- -- -- 39,611,649 1,215,793,546
Transfers from (to) other plans (note 1)......... 395,605 401,526 -- 23,797,733 1,033,054,040
----------- ---------- ---------- ---------- -------------
End of year...................................... $557,301 135,547 639,009 66,269,195 2,859,499,288
----------- ---------- ---------- ---------- -------------
----------- ---------- ---------- ---------- -------------
</TABLE>
27
<PAGE>
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
8. INVESTMENT ALLOCATION WITH FUND INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
DECEMBER 31, 1995
-------------------------------------------------------
VAN KAMPEN
VAN KAMPEN AMERICAN
TRAVELERS AMERICAN CAPITAL CAPITAL
COMMON EMERGING GOVERNMENT
STOCK GROWTH LOAN SECURITIES
FUND FUND FUND FUND
----------- ---------------- ---------- ------------
<S> <C> <C> <C> <C>
Assets
- ------
Investments (notes 2 and 3) $304,814,224 85,204,531 39,611,649 5,150,591
Cash 655,686 3,639 -- 1,250
Receivables:
Contributions 21,745,185 7,484 -- --
Dividends and other 15,256 150,170 -- 9,208
------------ ---------- ---------- ---------
Total receivables 21,760,441 157,654 -- 9,208
------------ ---------- ---------- ---------
Total assets 327,230,351 85,365,824 39,611,649 5,161,049
------------ ---------- ---------- ---------
Liabilities
- -----------
Payable for investment purchases 593,154 -- -- --
------------ ---------- ---------- ---------
Net assets available for plan benefits $326,637,197 85,365,824 39,611,649 5,161,049
------------ ---------- ---------- ---------
------------ ---------- ---------- ---------
Investment activity:
Dividends 3,759,762 8,031,351 -- 323,020
Interest 49,681 33,751 -- 213
Appreciation (depreciation) in fair value of investments 142,257,189 16,326,189 -- 413,114
------------ ---------- ---------- ---------
146,066,632 24,391,291 -- 736,347
Less: Trustee/administrative expenses (407,288) (101,595) -- (13,086)
------------ ---------- ---------- ---------
Net investment income (loss) 145,659,344 24,289,696 -- 723,261
------------ ---------- ---------- ---------
Contributions:
Participants 21,097,949 17,970,656 2,720,694 660,250
Employer (note 6) 24,143,255 -- -- --
------------ ---------- ---------- ---------
Total contributions 45,241,204 17,970,656 2,720,694 660,250
------------ ---------- ---------- ---------
Distributions to participants (20,987,299) (4,792,336) (1,963,555) (496,251)
Loan activity, net (632,282) (170,571) 7,578,624 (18,399)
Transfers from (to) other funds 12,118,427 3,269,549 -- (154,653)
------------ ---------- ---------- ---------
Net increase (decrease) 181,399,394 40,566,994 8,335,763 714,208
------------ ---------- ---------- ---------
Net assets available for plan benefits:
Beginning of year 145,237,803 44,798,830 31,275,886 4,446,841
Transfers from Lehman Brothers Holdings, Inc. (note 1) -- -- -- --
------------ ---------- ---------- ---------
End of year $326,637,197 85,365,824 39,611,649 5,161,049
------------ ---------- ---------- ---------
------------ ---------- ---------- ---------
<PAGE>
<CAPTION>
VAN KAMPEN VAN KAMPEN COMMON
AMERICAN AMERICAN COMMON SENSE
CAPITAL CAPITAL SENSE GROWTH &
COMSTOCK RESERVE GROWTH INCOME
FUND FUND FUND FUND
---------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
Assets
- ------
Investments (notes 2 and 3) 9,525,110 11,496,598 3,927,164 3,233,904
Cash 1,967 2,563 1,101 946
Receivables:
Contributions -- -- -- --
Dividends and other 19,444 41 554,505 338,874
--------- ---------- --------- ---------
Total receivables 19,444 41 554,505 338,874
--------- ---------- --------- ---------
Total assets 9,546,521 11,499,202 4,482,770 3,573,724
--------- ---------- --------- ---------
Liabilities
- -----------
Payable for investment purchases -- 35,918 554,504 333,838
--------- ---------- --------- ---------
Net assets available for plan benefits 9,546,521 11,463,284 3,928,266 3,239,886
--------- ---------- --------- ---------
--------- ---------- --------- ---------
Investment activity:
Dividends 1,310,925 576,763 554,503 367,987
Interest 278 467 133 80
Appreciation (depreciation) in fair value of
investments 1,302,364 -- 392,298 465,757
--------- --------- --------- ----------
2,613,567 577,230 946,934 833,824
Less: Trustee/administrative expenses (21,074) (29,296) (9,694) (8,189)
--------- --------- --------- ----------
Net investment income (loss) 2,592,493 547,934 937,240 825,635
--------- --------- --------- ----------
Contributions:
Participants 974,792 792,665 551,049 436,336
Employer (note 6) -- -- -- --
--------- --------- --------- ----------
Total contributions 974,792 792,665 551,049 436,336
--------- --------- --------- ----------
Distributions to participants (816,520) (1,632,224) (279,050) (111,869)
Loan activity, net (38,130) (49,273) (45,850) (27,024)
Transfers from (to) other funds (628,337) (37,705) (69,794) (81,717)
--------- --------- --------- ----------
Net increase (decrease) 2,084,298 (378,603) 1,093,595 1,041,361
--------- --------- --------- ----------
Net assets available for plan benefits:
Beginning of year 7,462,223 11,841,887 2,834,671 2,198,525
Transfers from Lehman Brothers Holdings, Inc.
(note 1) -- -- -- --
--------- ---------- --------- ----------
End of year 9,546,521 11,463,284 3,928,266 3,239,886
--------- ---------- --------- ----------
--------- ---------- --------- ----------
</TABLE>
28
<PAGE>
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
8. INVESTMENT ALLOCATION WITH FUND INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
DECEMBER 31, 1995
--------------------------
<S> <C> <C>
COMMON COMMON
SENSE SENSE
GOVERNMENT MONEY MARKET
FUND FUND
----------- -------------
Assets
- ------
Investments (notes 2 and 3) $ 887,600 2,732,189
Cash 575 1,133
Receivables:
Contributions -- --
Dividends and other 4,667 10,331
----------- -------------
Total receivables 4,667 10,331
----------- -------------
Total assets 892,842 2,743,653
----------- -------------
Liabilities
- -----------
Payable for investment purchases 9,701 10,328
----------- -------------
Net assets available for plan benefits $ 883,141 2,733,325
----------- -------------
----------- -------------
Investment activity:
Dividends 54,894 132,333
Interest 25 142
Appreciation (depreciation) in fair value of investments 72,961 --
----------- -------------
127,880 132,475
Less: Trustee/administrative expenses (4,262) (8,609)
----------- -------------
Net investment income (loss) 123,618 123,866
----------- -------------
Contributions:
Participants 119,531 (5,795)
Employer (note 6) -- --
----------- -------------
Total contributions 119,531 (5,795)
----------- -------------
Distributions to participants (66,786) (250,314)
Loan activity, net 1,293 (32,918)
Transfers from (to) other funds (50,887) 62,217
----------- -------------
Net increase (decrease) 126,769 (102,944)
----------- -------------
Net assets available for plan benefits:
Beginning of year 756,372 2,836,269
Transfer from Lehman Brothers Holdings, Inc. (note 1) -- --
----------- -------------
End of year $ 883,141 2,733,325
----------- -------------
----------- -------------
<PAGE>
<CAPTION>
<S> <C> <C> <C> <C>
SMITH BARNEY SMITH BARNEY SMITH BARNEY VAN KAMPEN AMERICAN
INCOME AND U.S. GOVERNMENT INCOME AMERICAN CAPITAL EXPRESS
GROWTH SECURITIES RETURN ENTERPRISE COMMON
FUND FUND FUND FUND STOCK FUND
------------ --------------- ------------- ---------------- -----------
Assets
- ------
Investments (notes 2 and 3) 98,655,385 20,923,181 5,768,707 27,640,186 87,464,433
Cash 810 900 883 797 32,060
Receivables:
Contributions 3,318 2,392 -- 10,253 --
Dividends and other 380 53 43 2 83
------------ --------------- ------------- ---------------- -----------
Total receivables 3,698 2,445 43 10,255 83
------------ --------------- ------------- ---------------- -----------
Total assets 98,659,893 20,926,526 5,769,633 27,651,238 87,496,576
------------ --------------- ------------- ---------------- -----------
Liabilities
- -----------
Payable for investment purchases -- -- -- -- --
------------ --------------- ------------- ---------------- -----------
Net assets available for plan benefits 98,659,893 20,926,526 5,769,633 27,651,238 87,496,576
------------ --------------- ------------- ---------------- -----------
------------ --------------- ------------- ---------------- -----------
Investment activity:
Dividends 10,299,575 1,469,275 356,591 3,873,606 1,539,620
Interest -- -- 105 4,610 --
Appreciation (depreciation) in fair value of 16,214,153 1,682,526 197,389 1,914,256 27,652,262
investments ------------ --------------- ------------- ---------------- -----------
26,513,728 3,151,801 554,085 5,792,472 29,191,882
Less: Trustee/administrative expenses (132,430) (33,679) (14,655) (33,044) (145,003)
------------ --------------- ------------- ---------------- -----------
Net investment income (loss) 26,381,298 3,118,122 539,430 5,759,428 29,046,879
------------ --------------- ------------- ---------------- -----------
Contributions:
Participants 9,063,827 2,236,395 3,231 4,916,582 (1,105)
Employer (note 6) -- -- -- -- --
------------ --------------- ------------- ---------------- -----------
Total contributions 9,063,827 2,236,395 3,231 4,916,582 (1,105)
------------ --------------- ------------- ---------------- -----------
Distributions to participants (8,190,356) (1,631,376) (779,812) (972,538) (7,101,193)
Loan activity, net (408,954) (172,184) (75,131) (28,325) (1,290,302)
Transfers from (to) other funds (8,323,205) (1,244,463) (1,012,589) 4,061,419 (6,195,379)
------------ --------------- ------------- ---------------- -----------
Net increase (decrease) 18,522,610 2,306,494 (1,324,871) 13,736,566 14,458,900
------------ --------------- ------------- ---------------- -----------
Net assets available for plan benefits:
Beginning of year 80,121,843 18,620,032 7,079,533 13,914,672 73,035,522
Transfer from Lehman Brothers Holdings, Inc. 15,440 -- 14,971 -- 2,154
(note 1)
------------ --------------- ------------- ---------------- -----------
End of year 98,659,893 20,926,526 5,769,633 27,651,238 87,496,576
------------ --------------- ------------- ---------------- -----------
------------ --------------- ------------- ---------------- -----------
</TABLE>
29
<PAGE>
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
8. INVESTMENT ALLOCATION WITH FUND INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
DECEMBER 31, 1995
----------------------------------------------------------
SMITH BARNEY SMITH BARNEY
SMITH BARNEY AGGRESSIVE SMITH BARNEY GLOBAL
MONEY GROWTH APPRECIATION OPPORTUNITIES
FUND FUND FUND FUND
------------- ------------ ------------- --------------
<S> <C> <C> <C> <C>
Assets
- ------
Investments (notes 2 and 3) $31,271,665 33,112,710 131,250,468 --
Cash 887 839 815 --
Receivables:
Contributions 110,928 9,189 9,314 --
Dividends and other 273 3 259 --
------------- ------------- ------------- -------------
Total receivables 111,201 9,192 9,573 --
------------- ------------- ------------- -------------
Total assets 31,383,753 33,122,741 131,260,856 --
------------- ------------- ------------- -------------
Liabilities
- -----------
Payable for investment purchases -- -- -- --
------------- ------------- ------------- -------------
Net assets available for plan benefits $31,383,753 33,122,741 131,260,856 --
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Investment activity:
Dividends 1,726,595 2,667,050 12,611,115 --
Interest -- 3,077 6,714 (910)
Appreciation (depreciation) in fair value of investments -- 5,200,165 18,271,524 (290,203)
------------- ------------- ------------- -------------
1,726,595 7,870,292 30,889,353 (291,113)
Less: Trustee/administrative expenses (50,469) (40,436) (171,708) (8,654)
------------- ------------- ------------- -------------
Net investment income (loss) 1,676,126 7,829,856 30,717,645 (299,767)
------------- ------------- ------------- -------------
Contributions:
Participants 4,699,229 450,836 14,887,568 --
Employer (note 6) -- -- -- --
------------- ------------- ------------- -------------
Total contributions 4,699,229 450,836 14,887,568 --
------------- ------------- ------------- -------------
Distributions to participants (5,167,140) (1,763,463) (8,151,684) (164,405)
Loan activity, net (155,251) (824,973) (1,697,306) (142,469)
Transfers from (to) other funds 477,280 4,621,116 (6,171,907) (9,990,829)
------------- ------------- ------------- -------------
Net increase (decrease) 1,530,244 10,313,372 29,584,316 (10,597,470)
------------- ------------- ------------- -------------
Net assets available for plan benefits:
Beginning of year 29,849,918 22,798,109 101,655,148 10,597,470
Transfer from Lehman Brothers Holdings, Inc. (note 1) 3,591 11,260 21,392 --
------------- ------------- ------------- -------------
End of year $31,383,753 33,122,741 131,260,856 --
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
<PAGE>
<CAPTION>
SMITH BARNEY SMITH BARNEY
INTERNATIONAL DIVERSIFIED
EQUITY STRATEGIC
FUND INCOME FUND
------------ ------------
<S> <C> <C>
Assets
- ------
Investments (notes 2 and 3) 94,757,657 14,289,961
Cash 773 656
Receivables:
Contributions 11,664 (203)
Dividends and other 6 65
------------ ------------
Total receivables 11,670 (138)
------------ ------------
Total assets 94,770,100 14,290,479
------------ ------------
Liabilities
- -----------
Payable for investment purchases -- --
------------ ------------
Net assets available for plan benefits 94,770,100 14,290,479
------------ ------------
------------ ------------
Investment activity:
Dividends 1,662,094 1,236,016
Interest 1,500 2,470
Appreciation (depreciation) in fair value of investments 1,968,376 803,879
------------ ------------
3,631,970 2,042,365
Less: Trustee/administrative expenses (125,183) (24,967)
------------ ------------
Net investment income (loss) 3,506,787 2,017,398
------------ ------------
Contributions:
Participants 20,700,361 3,268,105
Employer (note 6) -- --
------------ ------------
Total contributions 20,700,361 3,268,105
------------ ------------
Distributions to participants (5,848,921) (1,360,335)
Loan activity, net (30,920) (66,661)
Transfers from (to) other funds 5,063,305 (1,538,957)
------------ ------------
Net increase (decrease) 23,390,612 2,319,550
------------ ------------
Net assets available for plan benefits:
Beginning of year 71,377,296 11,970,929
Transfer from Lehman Brothers Holdings, Inc. (note 1) 2,192 --
------------ ------------
End of year 94,770,100 14,290,479
------------ ------------
------------ ------------
</TABLE>
30
<PAGE>
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
8. INVESTMENT ALLOCATION WITH FUND INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
DECEMBER 31, 1995
----------------------------------------------------------
<S> <C> <C> <C> <C>
SMITH BARNEY SMITH BARNEY SMITH BARNEY
HIGH SMITH BARNEY GUARANTEED SPECIAL
INCOME UTILITIES INCOME EQUITIES
FUND FUND FUND FUND
------------- ------------- ------------- -------------
Assets
- ------
Investments (notes 2 and 3) $ 8,670,973 14,843,236 142,873,227 5,364,534
Cash 816 987 9,071 875
Receivables:
Contributions -- 5,904 (3,925) 9,759
Dividends and other 59 32 100 2
------------- ------------- ------------- -------------
Total receivables 59 5,936 (3,825) 9,761
------------- ------------- ------------- -------------
Total assets 8,671,848 14,850,159 142,878,473 5,375,170
------------- ------------- ------------- -------------
Liabilities
- -----------
Payable for investment purchases -- -- -- --
------------- ------------- ------------- -------------
Net assets available for plan benefits $ 8,671,848 14,850,159 142,878,473 5,375,170
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Investment activity:
Dividends 995,877 970,311 -- 87,561
Interest 74 23,807 10,270,443 239
Appreciation (depreciation) in fair value of investments 641,628 2,845,859 -- 390,239
------------- ------------- ------------- -------------
1,637,579 3,839,977 10,270,443 478,039
Less: Trustee/administrative expenses (18,758) (24,172) (779,237) (951)
------------- ------------- ------------- -------------
Net investment income (loss) 1,618,821 3,815,805 9,491,206 477,088
------------- ------------- ------------- -------------
Contributions:
Participants -- 2,612,990 12,033,323 194,205
Employer (note 6) -- -- -- --
------------- ------------- ------------- -------------
Total contributions -- 2,612,990 12,033,323 194,205
------------- ------------- ------------- -------------
Distributions to participants (1,114,211) (433,507) (12,000,987) (9,455)
Loan activity, net (256,086) (224,041) (1,246,863) 10,893
Transfer from (to) other funds (1,364,466) (1,464,025) (5,387,736) 4,702,439
------------- ------------- ------------- -------------
Net increase (decrease) (1,115,942) 4,307,222 2,888,943 5,375,170
------------- ------------- ------------- -------------
Net assets available for plan benefits:
Beginning of year 9,784,581 10,526,050 139,989,530 --
Transfers from Lehman Brothers Holdings, Inc. (note 1) 3,209 16,887 -- --
------------- ------------- ------------- -------------
End of year $ 8,671,848 14,850,159 142,878,473 5,375,170
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
<PAGE>
<CAPTION>
SMITH BARNEY DEFERRED
MANAGED PROFIT
GROWTH SHARING
FUND PLAN TOTAL
------------- ----------- ------------
<S> <C> <C> <C>
Assets
- ------
Investments (notes 2 and 3) 10,039,358 66,429 1,193,575,670
Cash 623 -- 720,652
Receivables:
Contributions 9,547 -- 21,930,809
Dividends and other 2 -- 1,103,858
------------- ----------- -------------
Total receivables 9,549 -- 23,034,667
------------- ----------- -------------
Total assets 10,049,530 66,429 1,217,330,989
------------- ----------- -------------
Liabilities
- -----------
Payable for investment purchases -- -- 1,537,443
------------- ----------- -------------
Net assets available for plan benefits 10,049,530 66,429 1,215,793,546
------------- ----------- -------------
------------- ----------- -------------
Investment activity:
Dividends 119,699 3,481 54,730,004
Interest 668 -- 10,397,567
Appreciation (depreciation) in fair value of investments 222,257 -- 238,944,182
------------- ----------- -------------
342,624 3,481 304,071,753
Less: Trustee/administrative expenses (1,533) -- (2,207,972)
------------- ----------- -------------
Net investment income (loss) 341,091 3,481 301,863,781
------------- ----------- -------------
Contributions:
Participants 366,019 -- 120,749,693
Employer (note 6) -- -- 24,143,255
------------- ----------- -------------
Total contributions 366,019 -- 144,892,948
------------- ----------- -------------
Distributions to participants (41,580) -- (86,127,167)
Loan activity, net 43,103 -- --
Transfer from (to) other funds 9,340,897 -- --
------------- ----------- -------------
Net increase (decrease) 10,049,530 3,481 360,629,562
------------- ----------- -------------
Net assets available for plan benefits:
Beginning of year -- 62,948 855,072,888
Transfers from Lehman Brothers Holdings, Inc. (note 1) -- -- 91,096
------------- ----------- -------------
End of year 10,049,530 66,429 1,215,793,546
------------- ----------- -------------
------------- ----------- -------------
</TABLE>
31
<PAGE>
Travelers Group 401(k) Savings Plan
Schedule to Form 5500: Item 27(a)
Schedule of Assets Held for Investment Purposes
December 31, 1996
<TABLE>
<CAPTION>
Number
of Shares Cost Value**
--------- ---- -----
<S> <C> <C> <C>
Short-Term Funds:
- ----------------
Travelers Group Liquid Reserve Fund 9,405,955 $ 9,405,955 $ 9,405,955
Deferred Profit Sharing Plan 69,738 69,738 69,738
------------ ------------
9,475,693 9,475,693
------------ ------------
Stock Funds:
- -----------
Travelers Group Inc. Common Stock Fund* 19,202,407 332,313,775 871,309,221
Travelers Group Inc. Series C Preferred Stock* 3,085,612 164,521,877 251,168,817
Travelers Property Casualty Corp. Common
Stock Fund* 1,906,927 45,529,053 67,457,543
American Express Common Stock Fund 1,637,459 45,233,192 92,516,434
------------ -------------
587,597,897 1,282,452,015
------------ -------------
Mutual Funds:
- ------------
Van Kampen American Capital Reserve Fund 11,293,897 11,293,897 11,293,897
Van Kampen American Capital Enterprise Fund 2,667,015 35,088,837 40,325,261
Van Kampen American Capital Government
Securities Fund 475,261 4,960,687 4,800,137
Van Kampen American Capital Comstock Fund 780,715 12,065,019 11,538,961
Van Kampen American Capital Emerging
Growth Fund 3,373,476 93,333,932 115,878,893
Common Sense Money Market Fund 2,424,328 2,424,328 2,424,328
Common Sense Government Fund 81,996 897,874 848,658
Common Sense Growth & Income Fund 205,747 3,261,771 3,460,659
Common Sense Growth Fund 239,981 3,675,207 4,094,073
Smith Barney Equity Income Fund* 7,634,136 100,026,545 113,137,894
Smith Barney U.S. Government Securities Fund* 1,471,678 19,656,510 19,514,448
Smith Barney Money Fund* 36,960,963 36,960,963 36,960,963
Smith Barney International Equity Fund* 6,389,357 108,446,719 123,570,164
Smith Barney Aggressive Growth Fund* 1,030,794 25,469,615 33,026,655
Smith Barney Appreciation Fund* 11,877,704 121,128,556 153,001,216
Smith Barney Diversified Strategic Income Fund* 2,158,682 17,350,256 17,442,154
Smith Barney Utilities Fund* 885,924 12,770,411 13,271,144
Smith Barney Special Equities Fund* 448,429 13,533,860 12,672,596
Smith Barney Managed Growth Fund* 1,660,003 20,348,755 22,293,836
American Odyssey Core Equity Fund* 503,931 6,580,650 7,370,760
American Odyssey Emerging Fund* 413,327 4,329,452 5,117,401
American Odyssey Equity Fund* 294,159 4,143,706 4,328,109
American Odyssey Long-Term Bond Fund* 108,790 944,780 1,020,989
American Odyssey Intermediate-Term Bond Fund* 61,020 572,788 588,449
American Odyssey Short-Term Bond Fund* 33,784 336,584 333,958
State Street Global Advisors Flagship Fund 668,344 52,460,900 79,731,555
State Street Global Advisors Russell 2000 Fund 2,395,309 34,169,822 46,096,698
----------- -----------
746,232,424 884,143,856
----------- -----------
</TABLE>
32
<PAGE>
Travelers Group 401(k) Savings Plan
Schedule to Form 5500: Item 27(a)
Schedule of Assets Held for Investment Purposes (Continued)
December 31, 1996
<TABLE>
<CAPTION>
Number
of Shares Cost Value**
--------- ---- -----
<S> <C> <C> <C>
Guaranteed Investment Contracts ("GIC")--Smith Barney***:
- --------------------------------------------------------
Aetna Life Insurance GIC #14355 3,411,940 $ 3,411,940 $ 3,411,940
John Hancock Contract GIC #7129 4,153,339 4,153,339 4,153,339
Metropolitan Life Insurance-Annuity Term
Life GIC #13561 3,992,896 3,992,896 3,992,896
Principal Financial Corporate
Contract #4-09271-01 9,170,218 9,170,218 9,170,218
Principal Financial Corporate
Contract #49271-2 2,852,203 2,852,203 2,852,203
Prudential Insurance Company GIC #7658-211 6,706,351 6,706,351 6,706,351
Prudential Insurance Company GIC #7658-212 9,883,380 9,883,380 9,883,380
Travelers Insurance Company #GR-16384* 70,763,882 70,763,882 70,763,882
Travelers Insurance Company #GR-16409* 14,584,008 14,584,008 14,584,008
Travelers Insurance Company #GR-16409A* 21,313,958 21,313,958 21,313,958
Term Interest Guaranteed Annuity Contracts:
- ------------------------------------------
Group Annuity Contract #GR-16171* 2,049,951 2,049,951 2,049,951
Group Annuity Contract #GR-16331* 1,773,398 1,773,398 1,773,398
Group Annuity Contract #GR-16424* 2,865,859 2,865,859 2,865,859
Group Annuity Contract #GR-16487* 3,152,998 3,152,998 3,152,998
Travelers Insurance Company Annuity Contracts* 477,075,446 477,075,446 477,075,446
-------------- --------------
633,749,827 633,749,827
-------------- --------------
Universal Life Insurance:
- ------------------------
Universal Life Insurance 42,020 42,020 42,020
In-Time Investing Fund:
- ----------------------
American Odyssey Core Equity Fund* 35,745 529,017 522,823
American Odyssey Short-Term Bond Fund* 13,237 132,401 130,850
-------------- --------------
661,418 653,673
-------------- -------------
Loan Fund**** 66,269,195 66,269,195
-------------- --------------
Total $2,044,028,474 $2,876,786,279
-------------- --------------
-------------- --------------
</TABLE>
* Parties-in-interest exempt under the ERISA Regulation. See note 5 of notes
to financial statements.
** See note 2 of notes to financial statements for a discussion of investment
valuation.
*** The interest rates of the guaranteed investment contracts range from 6.2%
to 9.6%. The blended rate of return earned for 1996 was 6.7% prior to fund
expenses.
**** The interest rates on loans to participants equal one percentage point
above the Prime Rate published in THE WALL STREET JOURNAL for the first
business day of the month in which the loan application is received.
33
<PAGE>
Travelers Group 401(k) Savings Plan
Schedule to Form 5500: Item 27(a)
Schedule of Assets Held for Investment Purposes Which Were Both Acquired and
Disposed Within The Plan Year
For the year ended December 31, 1996
There were no assets held for investment purposes which were both acquired
and disposed within the Plan year.
34
<PAGE>
Travelers Group 401(k) Savings Plan
Schedule to Form 5500: Item 27(d)
Schedule of Reportable Transactions
For the year ended December 31, 1996
The following series of transactions exceeded 5% of the Plan's net assets
available for plan benefits.
<TABLE>
<CAPTION>
EXPENSE
NO. OF PURCHASE SELLING WITH COST NET
DESCRIPTION TRANSACTIONS PRICE PRICE TRADE OF ASSET GAIN(LOSS)
- ----------------------------------------- ------------- ------------- ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Liquid Reserve Fund 1,865 $124,872,321 -- -- 124,872,321 --
Liquid Reserve Fund 1,566 $ -- 136,661,578 -- 136,661,578 --
Travelers Group Inc. Common Stock Fund 325 $108,480,380 -- 78,026 108,558,406 --
Travelers Group Inc. Common Stock Fund 290 $ -- 47,712,104 41,967 21,451,040 26,219,097
</TABLE>
35
