<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K/A
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 for the fiscal year ended December 31, 1996 or
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 for the transition period from ___________ to ___________
Commission File Number 0-1743
------
A. Full title of the plan and address of the plan:
The Rouse Company Savings Plan
c/o Personnel Division
The Rouse Company Building
10275 Little Patuxent Parkway
Columbia, Maryland 21044
B. Name of issuer of the securities held pursuant to the plan and the address
of its principal executive offices:
The Rouse Company
The Rouse Company Building
10275 Little Patuxent Parkway
Columbia, Maryland 21044
<PAGE>
THE ROUSE COMPANY
SAVINGS PLAN
Financial Statements
December 31, 1996 and 1995
(With Independent Auditors' Report Thereon)
<PAGE>
THE ROUSE COMPANY SAVINGS PLAN
December 31, 1996 and 1995
Index
<TABLE>
<CAPTION>
Page
----
<S> <C>
Independent Auditors' Report 1
Statements of Net Assets Available for Plan Benefits --
December 31, 1996 and 1995 2
Statements of Changes in Net Assets Available for Plan
Benefits -- Years ended December 31, 1996 and 1995 3
Notes to Financial Statements -- December 31, 1996 and 1995 5
Item 27a -- Schedule of Assets Held for Investment Purposes --
December 31, 1996 9
Item 27d -- Schedule of Reportable Transactions -- Year ended
December 31, 1996 10
</TABLE>
* * * * * * *
The other schedules required by Item 27 of Department of Labor Form 5500 are
inapplicable and are therefore omitted.
<PAGE>
Independent Auditors' Report
----------------------------
The Trustee
The Rouse Company Savings Plan:
We have audited the accompanying statements of net assets available for plan
benefits of The Rouse Company 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 Rouse
Company Savings 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 audits were made 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 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 Rules and Regulations for Reporting and Disclosure under the
Employee Retirement Income Security Act of 1974. The fund information in the
statements of net assets available for plan benefits and the statements of
changes in net assets available for plan benefits is presented for purposes of
additional analysis rather than to present the net assets available for plan
benefits and the changes in net assets available for plan benefits of each fund.
The supplemental schedules and fund information have been subjected to the
auditing procedures applied in the audits of the basic financial statements and,
in our opinion, are fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
/s/ KPMG Peat Marwick LLP
KPMG Peat Marwick LLP
Baltimore, Maryland
June 20, 1997
<PAGE>
THE ROUSE COMPANY SAVINGS PLAN
Statement of Net Assets Available for Plan Benefits
December 31, 1996, and 1995
<TABLE>
<CAPTION>
The Rouse Company T. Rowe Price
------------------------------------------------------ -----------------
Quarterly
Convertible Income Ariel
Common Preferred Preferred Growth Balanced
Stock Stock Securities Fund Fund
---------------- ---------------- ---------------- ---------------- ----------------
1996
<S> <C> <C> <C> <C> <C>
Investments $ 28,128,526 - 229,725 40,047 1,986,558
Contributions received from:
The Rouse Company 128,032 - - - -
Participants 41,301 - 3,429 2,402 11,398
---------------- ---------------- ---------------- ---------------- ----------------
169,333 - 3,429 2,402 11,398
---------------- ---------------- ---------------- ---------------- ----------------
Net assets available
for plan benefits $ 28,297,859 - 233,154 42,449 1,997,956
================ ================ ================ ================ ================
1995
Investments $ 17,382,401 1,313,103 - - 496,785
Contributions received from:
The Rouse Company 120,824 27,701 - - -
Participants 51,540 15,279 - - 11,590
---------------- ---------------- ---------------- ---------------- ----------------
172,364 42,980 - - 11,590
---------------- ---------------- ---------------- ---------------- ----------------
Net assets available
for plan benefits $ 17,554,765 1,356,083 - - 508,375
================ ================ ================ ================ ================
</TABLE>
<TABLE>
<CAPTION> T. Rowe Price
---------------------------------------------------------------------------------------------
New
Equity International America New Prime
Index Stock Growth Horizons Reserve
Fund Fund Fund Fund Fund
----------------- ---------------- ---------------- ---------------- ----------------
1996
<S> <C> <C> <C> <C> <C>
Investments 1,793,360 3,369,007 4,526,321 5,963,594 3,517,125
Contributions received from:
The Rouse Company - - - - -
Participants 39,964 33,083 56,783 80,509 22,053
----------------- ---------------- ---------------- ---------------- ----------------
39,964 33,083 56,783 80,509 22,053
----------------- ---------------- ---------------- ---------------- ----------------
Net assets available
for plan benefits 1,833,324 3,402,090 4,583,104 6,044,103 3,539,178
================= ================ ================ ================ ================
1995
Investments 1,173,617 1,989,390 1,172,611 4,853,404 1,841,903
Contributions received from:
The Rouse Company - - - - -
Participants 19,054 34,024 29,486 61,714 13,409
----------------- ---------------- ---------------- ---------------- ----------------
19,054 34,024 29,486 61,714 13,409
----------------- ---------------- ---------------- ---------------- ----------------
Net assets available
for plan benefits 1,192,671 2,023,414 1,202,097 4,915,118 1,855,312
================= ================ ================ ================ ================
</TABLE>
<TABLE>
<CAPTION>
T. Rowe Price
-------------------------------------------------
Small Spectrum Spectrum
Cap Value Income Growth Insurance Participant
Fund Fund Fund Contracts Loans Total
--------------- -------------- -------------- -------------- -------------- ------------
1996
<S> <C> <C> <C> <C> <C> <C>
Investments 1,693,924 1,617,123 4,648,534 7,213,858 2,656,661 67,384,363
Contributions received from:
The Rouse Company - - - - - 128,032
Participants 23,457 14,212 52,765 45,862 - 427,218
--------------- -------------- -------------- -------------- -------------- ------------
23,457 14,212 52,765 45,862 - 555,250
--------------- -------------- -------------- -------------- -------------- ------------
Net assets available
for plan benefits 1,717,381 1,631,335 4,701,299 7,259,720 2,656,661 67,939,613
=============== ============== ============== ============== ============== ============
1995
Investments 963,095 1,433,237 2,203,836 8,407,825 2,251,515 45,482,722
Contributions received from:
The Rouse Company - - - - - 148,525
Participants 18,872 19,319 35,552 68,953 - 378,792
--------------- -------------- -------------- -------------- -------------- ------------
18,872 19,319 35,552 68,953 - 527,317
--------------- -------------- -------------- -------------- -------------- ------------
Net assets available
for plan benefits 981,967 1,452,556 2,239,388 8,476,778 2,251,515 46,010,039
=============== ============== ============== ============== ============== ============
</TABLE>
See accompanying notes to financial statements
<PAGE>
Statement of Changes in Net Assets Available for Plan Benefits
Years ended December 31, 1996 and 1995
<TABLE>
<CAPTION>
The Rouse Company T. Rowe Price
---------------------------------------------------- ---------------
Quarterly
Convertible Income Ariel
Common Preferred Preferred Growth Balanced
Stock Stock Securities Fund Fund
---------------- ---------------- ---------------- --------------- ---------------
1996
<S> <C> <C> <C> <C> <C>
Contributions from
The Rouse Company $ 1,401,791 221,447 2,392 - -
Contributions from
participants 544,114 117,603 5,393 24,691 150,584
Conversions in from acquisition
of The Hughes Corporation
(note 2) - - - - 1,271,004
Investment income:
Dividends and interest 744,888 91,098 5,304 2,113 47,738
Net appreciation
(depreciation) in fair
values of investments 10,130,241 (64,477) (2,064) 4,131 82,104
Interest on participant
loans - - - - -
---------------- ---------------- ---------------- --------------- ---------------
Total investment
income 10,875,129 26,621 3,240 6,244 129,842
---------------- ---------------- ---------------- --------------- ---------------
Distributions to participants (2,248,936) (142,137) - (1,556) (53,972)
Participant loans repaid
as part of termination
distributions - - - - -
Interprogram transfers, net 170,996 (1,579,617) 222,129 13,070 (7,877)
---------------- ---------------- ---------------- --------------- ---------------
Increase (decrease)
in net assets
available for
plan benefits 10,743,094 (1,356,083) 233,154 42,449 1,489,581
Net assets available for plan benefits:
Beginning of year 17,554,765 1,356,083 - - 508,375
---------------- ---------------- ---------------- --------------- ---------------
End of year $ 28,297,859 - 233,154 42,449 1,997,956
================ ================ ================ =============== ===============
</TABLE>
<TABLE>
<CAPTION>
T. Rowe Price
---------------------------------------------------------------------------------------------
New
Equity International America New Prime
Index Stock Growth Horizons Reserve
Fund Fund Fund Fund Fund
----------------- ---------------- ---------------- ---------------- ----------------
1996
<S> <C> <C> <C> <C> <C>
Contributions from
The Rouse Company - - - - -
Contributions from
participants 303,148 415,488 485,725 837,975 208,044
Conversions in from acquisition
of The Hughes Corporation
(note 2) - 695,567 2,652,254 - 1,830,162
Investment income:
Dividends and interest 56,967 89,575 377,059 550,334 99,332
Net appreciation
(depreciation) in fair
values of investments 237,920 281,639 (56,716) 297,169 -
Interest on participant
loans - - - - -
----------------- ---------------- ---------------- ---------------- ----------------
Total investment
income 294,887 371,214 320,343 847,503 99,332
----------------- ---------------- ---------------- ---------------- ----------------
Distributions to participants (232,808) (271,688) (157,683) (797,842) (540,291)
Participant loans repaid
as part of termination
distributions - - - - -
Interprogram transfers, net 275,426 168,095 80,368 241,349 86,619
----------------- ---------------- ---------------- ---------------- ----------------
Increase (decrease)
in net assets
available for
plan benefits 640,653 1,378,676 3,381,007 1,128,985 1,683,866
Net assets available for plan benefits:
Beginning of year 1,192,671 2,023,414 1,202,097 4,915,118 1,855,312
----------------- ---------------- ---------------- ---------------- ----------------
End of year 1,833,324 3,402,090 4,583,104 6,044,103 3,539,178
================= ================ ================ ================ ================
</TABLE>
<TABLE>
<CAPTION>
T. Rowe Price
----------------------------------------------
Small Spectrum Spectrum
Cap Value Income Growth Insurance Participant
Fund Fund Fund Contracts Loans Total
-------------- ------------- ------------- ------------- -------------- -------------
1996
<S> <C> <C> <C> <C> <C> <C>
Contributions from
The Rouse Company - - - - - 1,625,630
Contributions from
participants 255,184 196,936 468,703 653,572 - 4,667,160
Conversions in from acquisition
of The Hughes Corporation
(note 2) - 142,197 1,429,921 - 79,394 8,100,499
Investment income:
Dividends and interest 84,100 114,588 323,063 440,290 - 3,026,449
Net appreciation
(depreciation) in fair
values of investments 208,845 (4,928) 242,991 - - 11,356,855
Interest on participant
loans - - - - 168,017 168,017
-------------- ------------- ------------- ------------- -------------- -------------
Total investment
income 292,945 109,660 566,054 440,290 168,017 14,551,321
-------------- ------------- ------------- ------------- -------------- -------------
Distributions to participants (172,155) (119,241) (256,505) (1,772,318) - (6,767,132)
Participant loans repaid
as part of termination
distributions - - - - (247,904) (247,904)
Interprogram transfers, net 359,440 (150,773) 253,738 (538,602) 405,639 -
-------------- ------------- ------------- ------------- -------------- -------------
Increase (decrease)
in net assets
available for
plan benefits 735,414 178,779 2,461,911 (1,217,058) 405,146 21,929,574
Net assets available for plan benefits:
Beginning of year 981,967 1,452,556 2,239,388 8,476,778 2,251,515 46,010,039
-------------- ------------- ------------- ------------- -------------- -------------
End of year 1,717,381 1,631,335 4,701,299 7,259,720 2,656,661 67,939,613
============== ============= ============= ============= ============== =============
(Continued)
</TABLE>
See accompanying notes to financial statements
3
<PAGE>
THE ROUSE COMPANY SAVINGS PLAN
Statements of Changes in Net Assets Available for Plan Benefits
Years ended December 31, 1996 and 1995
<TABLE>
<CAPTION>
The Rouse Company T. Rowe Price
------------------------------------- -----------------------------------------------------
Convertible Equity International
Common Preferred Balanced Index Stock
Stock Stock Fund Fund Fund
------------------- --------------- --------------- --------------- ---------------
1995
<S> <C> <C> <C> <C> <C>
Contributions from
The Rouse Company $ 1,418,112 326,204 - - -
Contributions from
participants 703,281 179,887 120,493 187,186 463,338
Investment income:
Dividends and interest 693,190 64,681 20,234 43,910 59,920
Net appreciation
(depreciation) in fair
values of investments 998,893 59,451 61,089 237,556 143,147
Interest on participant
loans - - - - -
--------------- ----------- ------------ ------------- -------------
Total investment
income 1,692,083 124,132 81,323 281,466 203,067
--------------- ----------- ------------ ------------- -------------
Distributions to participants (2,167,847) (116,896) (35,374) (75,493) (173,073)
Participant loans repaid
as part of termination
distributions - - - - -
Interprogram transfers, net (963,352) 106,238 55,260 129,456 58,261
--------------- ----------- ------------ ------------- -------------
Increase (decrease)
in net assets available
for plan benefits 682,277 619,565 221,702 522,615 551,593
Net assets available for
plan benefits:
Beginning of year 16,872,488 736,518 286,673 670,056 1,471,821
--------------- ----------- ------------ ------------- -------------
End of year $ 17,554,765 1,356,083 508,375 1,192,671 2,023,414
=============== =========== ============ ============= =============
<CAPTION>
T. Rowe Price
---------------------------------------------------------------------------------------------
New
America New Prime Small Spectrum
Growth Horizons Reserve Cap Value Income
Fund Fund Fund Fund Fund
----------------- ---------------- ---------------- ---------------- ----------------
1995
<S> <C> <C> <C> <C> <C>
Contributions from
The Rouse Company - - - - -
Contributions from
participants 253,820 609,275 189,642 174,443 243,299
Investment income:
Dividends and interest 55,746 509,808 100,982 43,918 92,264
Net appreciation
(depreciation) in fair
values of investments 260,188 1,158,609 - 129,237 133,119
Interest on participant
loans - - - - -
--------------- ----------- ------------ ------------- -------------
Total investment
income 315,934 1,668,417 100,982 173,155 225,383
--------------- ----------- ------------ ------------- -------------
Distributions to participants (125,067) (445,831) (505,352) (32,583) (133,011)
Participant loans repaid
as part of termination
distributions - - - - -
Interprogram transfers, net 162,733 182,993 204,276 227,467 19,031
--------------- ----------- ------------ ------------- -------------
Increase (decrease)
in net assets available
for plan benefits 607,420 2,014,854 (10,452) 542,482 354,702
Net assets available for
plan benefits:
Beginning of year 594,677 2,900,264 1,865,764 439,485 1,097,854
--------------- ----------- ------------ ------------- -------------
End of year 1,202,097 4,915,118 1,855,312 981,967 1,452,556
=============== =========== ============ ============= =============
<CAPTION>
T. Rowe Price
-----------------
Spectrum
Growth Insurance Participant
Fund Contracts Loans Total
----------------- ---------------- ---------------- ----------------
1995
<S> <C> <C> <C> <C>
Contributions from
The Rouse Company - - - 1,744,316
Contributions from
participants 403,278 828,074 - 4,356,016
Investment income:
Dividends and interest 147,786 494,425 - 2,326,864
Net appreciation
(depreciation) in fair
values of investments 333,618 - - 3,514,907
Interest on participant
loans - - 135,682 135,682
--------------- ----------- ------------ -------------
Total investment
income 481,404 494,425 135,682 5,977,453
--------------- ----------- ------------ -------------
Distributions to participants (127,278) (2,038,134) - (5,975,939)
Participant loans repaid
as part of termination
distributions - - (178,093) (178,093)
Interprogram transfers, net (17,667) (358,884) 194,188 -
--------------- ----------- ------------ -------------
Increase (decrease)
in net assets available
for plan benefits 739,737 (1,074,519) 151,777 5,923,753
Net assets available for
plan benefits:
Beginning of year 1,499,651 9,551,297 2,099,738 40,086,286
--------------- ----------- ------------ -------------
End of year 2,239,388 8,476,778 2,251,515 46,010,039
=============== =========== ============ =============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
THE ROUSE COMPANY SAVINGS PLAN
Notes to Financial Statements
December 31, 1996 and 1995
(1) Summary of Significant Accounting Policies
------------------------------------------
(a) Basis of presentation
---------------------
The financial statements of The Rouse Company Savings Plan (the Plan)
have been prepared on the accrual basis and present the net assets
available for benefits and the changes in those net assets.
(b) Investments
-----------
Investments in the common stock, convertible preferred stock (redeemed
in 1996) and quarterly income preferred securities (issued in November
1995) of The Rouse Company and the T. Rowe Price and other mutual
funds are carried at fair values determined by quoted market prices.
Investments in the insurance contracts are carried at contract value
(representing contributions made plus interest credited less
distributions) as the insurance contracts held by the Plan are "fully
benefit-responsive," as defined in Statement of Position 94-4,
Reporting of Investment Contracts Held by Health and Welfare Benefit
Plans and Defined-Contribution Pension Plans. Loans to participants
are carried at cost, which approximates fair value. Security
transactions are recognized on a trade date basis. Unrealized
appreciation and depreciation in the fair values of investments are
recognized in the periods in which the changes occur.
(c) Administrative expenses
-----------------------
The Rouse Company pays all administrative expenses incurred on behalf
of the Plan. Terminated participants who have left their account
balances in the Plan are required to reimburse the Company for
administrative expenses relating to their accounts. Participants
requesting loans from the Plan are required to pay an administrative
fee to the Company for the processing of such loans.
(d) Use of estimates
----------------
The preparation of financial statements in conformity with generally
accepted accounting principles requires the Plan's management to make
estimates and judgments that affect the reported amounts of net assets
and disclosures of contingencies at the date of the financial
statements and changes in net assets recognized during the reporting
period. Actual results could differ from those estimates.
The following brief description of the Plan summarizes the principal
provisions of the Plan and is provided for general information
purposes only. Participants should refer to the Plan agreement for
more complete information.
5
<PAGE>
THE ROUSE COMPANY SAVINGS PLAN
Notes to Financial Statements
(2) General Description of the Plan
-------------------------------
The Plan was established effective June 1, 1983 to provide employees of The
Rouse Company and certain of its subsidiaries and affiliates (the Company)
an incentive to save for retirement and for financial emergencies.
Generally, employees who are not covered under a collective bargaining
agreement, who are at least 21 years of age and who have completed 1,000
hours of service in one year are eligible to participate in the Plan.
On June 12, 1996, the Company acquired all of the outstanding equity
interests in The Hughes Corporation and its affiliated partnership, Howard
Hughes Properties, Limited Partnership (together, Hughes). Under the merger
agreement, participants in the Hughes 401(k) Savings Plan (Hughes
employees) become eligible to participate in the Plan as of the closing
date, subject to the terms of the Plan. Accordingly, account balances of
Hughes employees who elected to participate in the Plan were transferred
from the Hughes 401(k) Savings Plan to the Plan in 1996 and were allocated
among the various investment programs based on the similarity of investment
objectives. The merger agreement also provides that the Company will
consider participants' service with Hughes prior to the closing date for
eligibility and vesting purposes.
Basic contributions to the Plan are made pursuant to salary reduction
agreements between the Company and participants. Participants may elect to
reduce their compensation, as defined in the Plan, by amounts ranging from
1% to 19% of such compensation, subject to an annual limitation. Employees
may also make supplemental contributions to the Plan in amounts up to 9% of
compensation, as defined. The supplemental contributions are not pursuant
to salary reduction agreements. Participants are able to defer payment of
income taxes on their basic contributions to the Plan, related
contributions by the Company and all income realized on accounts maintained
under the Plan.
Participants' contributions to the Plan are allocated among the various
investment programs based on their instructions, subject to certain
limitations defined in the Plan. Participants may change their allocation
instructions and transfer accumulated savings between funds on a monthly
basis, subject to certain limitations defined in the Plan.
Matching contributions are made by the Company to each participant's
account in an amount equal to $1.00 for every $2.00 of a participant's
basic contribution up to 6% of such participant's base salary. Until
December 31, 1996, the Company's matching contributions were invested in
the Company's common stock, convertible preferred stock or quarterly income
preferred securities based on participants' instructions. Effective January
1, 1997 participants may direct the Company's matching contributions to any
of the investment vehicles offered under the Plan. In addition, the Company
may make additional contributions to the Plan under certain circumstances.
Such additional contributions are distributed to accounts of participants
pursuant to guidelines set forth in the Plan. Participants who joined the
Plan prior to January 1, 1989 obtain an immediate and fully vested interest
in all contributions made by the Company. Participants who joined the Plan
on or after January 1, 1989 are required to complete two years of service,
as defined in the Plan, to become fully vested in the Company's
contributions. Forfeitures of nonvested Company contributions may be used
by the Company to satisfy future matching contribution requirements.
6
<PAGE>
THE ROUSE COMPANY SAVINGS PLAN
Notes to Financial Statements
(2) General Description of the Plan, Continued
------------------------------------------
Participants or their beneficiaries are eligible for distributions upon
retirement, disability, termination of employment or death of the
participant. In addition, participants may make withdrawals from their
accounts upon attainment of age 59-1/2. Participants may also make
withdrawals of their basic contributions by reason of financial hardship,
under specific guidelines set forth in the Plan. Subject to certain
limitations, supplemental contributions may be withdrawn by participants
for any reason.
Generally, participants may borrow from the Plan up to the lesser of
$50,000 or 50% of their vested account balances. Interest on such
borrowings and repayment schedules are determined pursuant to guidelines in
the Plan. Generally, borrowings bear interest at the prime rate of a
designated commercial bank at the time of the loan application and must be
repaid to the Plan over a period not to exceed five years.
While the Company has not expressed any intent to terminate the Plan, it is
free to do so at any time. In the event of termination of the Plan, the
Plan's assets would be distributed to the participants in accordance with
the Plan agreement.
(3) Investments
-----------
Information relating to investments, including individual investments which
represent 5% or more of net assets available for plan benefits, is
summarized as follows at December 31:
<TABLE>
<CAPTION>
1996 1995
---------------------- -----------------------
Contract Contract
Number of or fair Number of or fair
shares value shares value
------ ----- ------ -----
<S> <C> <C> <C> <C>
The Rouse Company:
Common stock 882,598 $28,128,526 853,204 $17,382,401
Convertible preferred
stock -- -- 25,435 1,313,103
Quarterly income preferred
securities 9,053 229,725 -- --
T. Rowe Price and other
Mutual Funds:
International Stock Fund 244,131 3,369,007 162,665 1,989,390
New America Growth Fund 117,965 4,526,321 33,590 1,172,611
New Horizons Fund 273,936 5,963,594 236,751 4,853,404
Prime Reserve Fund 3,517,125 3,517,125 1,841,903 1,841,903
Spectrum Growth Fund 307,239 4,648,534 163,368 2,203,836
========= =========
Others 7,131,012 4,066,734
----------- -----------
29,155,593 16,127,878
----------- -----------
Insurance contracts 7,213,858 8,407,825
Participant loans 2,656,661 2,251,515
----------- -----------
$67,384,363 $45,482,722
=========== ===========
</TABLE>
7
<PAGE>
THE ROUSE COMPANY SAVINGS PLAN
Notes to Financial Statements
(3) Investments, Continued
----------------------
The investments in insurance contracts consist of guaranteed income
contracts offered by various insurance companies. The Plan deals only with
highly rated insurance companies and does not expect that any of them will
fail to meet their obligations under the contracts. The contracts in effect
at December 31, 1996, provide for interest at rates ranging from 4.93% to
7.40% and mature at various dates to 1999. The average yield on the
contracts was 6.22% in 1996 and 5.82% in 1995. The aggregate contract value
of the contracts in effect at December 31, 1996 approximates their
aggregate estimated fair value based on current market interest rates for
contracts with similar maturities and credit quality.
(4) Federal Income Tax Status
-------------------------
The Internal Revenue Service has determined and informed the Company by a
letter dated August 11, 1995 that the Plan and related trust are designed
in accordance with applicable sections of the Internal Revenue Code (IRC)
and, accordingly, are tax-exempt. The Plan's management believes that the
Plan continues to qualify and to operate in accordance with applicable
provisions of the IRC.
(5) Reconciliation to Form 5500
---------------------------
Amounts due to terminated participants for benefits payable of $86,374 at
December 31, 1996 and $1,266,932 at December 31, 1995 are reported as
liabilities in the Plan's Annual Report on Department of Labor Form 5500,
but are included in net assets available for plan benefits in the financial
statements.
8
<PAGE>
THE ROUSE COMPANY SAVINGS PLAN
Item 27a -- Schedule of Assets Held for Investment Purposes
December 31, 1996
<TABLE>
<CAPTION>
Par value or
number of Current
Name of issuer and title of issue shares Cost (note) value
- --------------------------------- ------ ----------- -----
<S> <C> <C> <C>
The Rouse Company:
Common stock 882,598 $17,330,672 28,128,526
Quarterly income preferred securities 9,053 231,789 229,725
Ariel Growth Fund 1,253 36,171 40,047
T. Rowe Price Funds:
Balanced Fund 137,193 1,876,475 1,986,558
Equity Index Fund 88,169 1,383,363 1,793,360
International Stock Fund 244,131 3,026,518 3,369,007
New America Growth Fund 117,965 4,438,182 4,526,321
New Horizons Fund 273,936 4,924,107 5,963,594
Prime Reserve Fund 3,517,125 3,517,125 3,517,125
Small Cap Value Fund 86,601 1,431,486 1,693,924
Spectrum Income Fund 144,386 1,577,787 1,617,123
Spectrum Growth Fund 307,239 4,199,405 4,648,534
=========
Insurance Contracts:
Principal Mutual Life Insurance
Company 1,827,329 1,827,329
Hartford Life Insurance Company 1,044,638 1,044,638
John Hancock Mutual Life Insurance
Company 1,067,015 1,067,015
Metropolitan Life Insurance Company 410,171 410,171
Life of Georgia Life Insurance Company 1,215,025 1,215,025
American International Group Life
Insurance Company 1,649,680 1,649,680
Participant loans 2,656,661 2,656,661
--------- ----------
Total investments $53,843,599 67,384,363
=========== ==========
</TABLE>
Notes:
(1) Cost of the securities of The Rouse Company and the T. Rowe Price and
other mutual funds includes reinvested dividends or interest credited, as
applicable. Cost of the insurance contracts is equal to contract value,
representing contributions made plus interest credited less
distributions.
(2) T. Rowe Price Retirement Plan Services, Inc. and The Rouse Company
represent parties in interest.
9
<PAGE>
THE ROUSE COMPANY SAVINGS PLAN
Item 27d - Schedule of Reportable Transactions (Note 1)
Year ended December 31, 1996
<TABLE>
<CAPTION>
Current
value of
Purchase Redemption asset on
price or selling price Cost of transaction Net gain
Description of asset (note 2) (note 2) asset date(s) (loss)
-------------------- -------- ------- ----- ------- ------
<S> <C> <C> <C> <C> <C>
The Rouse Company -
common stock $4,655,419 -- -- 4,655,419 --
The Rouse Company -
common stock -- 4,039,535 3,195,856 4,039,535 843,679
T. Rowe Price Mutual
Funds:
New America
Growth Fund 3,782,628 -- -- 3,782,628 --
New America
Growth Fund -- 372,202 323,375 372,202 48,827
Prime Reserve
Fund 2,843,389 -- -- 2,843,389 --
Prime Reserve
Fund -- 1,168,167 1,168,167 1,168,167 --
Spectrum Growth
Fund 2,614,430 -- -- 2,614,430 --
Spectrum Growth
Fund -- 412,723 347,165 412,723 65,558
</TABLE>
Notes:
(1) Reportable transactions are presented in accordance with Department of
Labor regulations relating to requirements for employee benefit plan
annual reports filed under the Employee Retirement Income Security Act of
1974.
(2) The purchases and sales represent series of transactions; however, it is
not practical to determine the number of individual transactions involved.
(3) T. Rowe Price Retirement Plan Services, Inc. and The Rouse Company
represent parties in interest.
10
<PAGE>
Signatures
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the Plan) have duly caused this
amendment to be signed on its behalf by the undersigned, thereunto duly
authorized.
THE ROUSE COMPANY SAVINGS PLAN
Date: June 27, 1997 By /s/ WILLIAM D. BODEN
--------------------
William D. Boden
Administrator
and
Date: June 27, 1997 By /s/ GEORGE L. YUNGMANN
----------------------
George L. Yungmann
Trustee
<PAGE>
Consent of Independent Certified Public Accountants
---------------------------------------------------
The Board of Directors
The Rouse Company:
We consent to the incorporation by reference in the Registration Statement (No.
2-83612) on Form S-8 of The Rouse Company of our report dated June 20, 1997,
relating to the statements of net assets available for plan benefits of The
Rouse Company Savings Plan as of December 31, 1996 and 1995, the related
statements of changes in net assets available for plan benefits for the years
then ended and the related schedules for the year ended December 31, 1996, which
report appears elsewhere in this Form 11-K/A.
/s/ KPMG Peat Marwick LLP
KPMG PEAT MARWICK LLP
Baltimore, Maryland
June 26, 1997
