<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-------------------------
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from _________ to ________
COMMISSION FILE NUMBER: 0-25540
A. Full title of the plan and the address of the plan, if different from that
of the issuer named below:
STB SYSTEMS, INC. 401(k) SAVINGS PLAN
B. Name of issuer of the securities held pursuant to the plan and the address
of its principal executive office:
STB SYSTEMS, INC.
1651 NORTH GLENVILLE DRIVE
RICHARDSON, TEXAS 75081
<PAGE>
REQUIRED INFORMATION
The following financial statements and forms are furnished with this Form
11-K Annual Report for the STB Systems, Inc. 401(k) Savings Plan (the "Plan"):
1. Report of Independent Accountants.
2. Statement of Net Assets Available for Plan Benefits as of December 31,
1997 and 1996.
3. Statement of Changes in Net Assets Available for Plan Benefits for the
Year Ended December 31, 1997.
4. Notes to Financial Statements.
5. Statement of Net Assets Available for Plan Benefits with Fund
Information at December 31, 1997.
6. Statement of Net Assets Available for Plan Benefits with Fund
Information at December 31, 1996.
7. Statement of Changes in Net Assets Available for Plan Benefits
with Fund Information for the Year Ended December 31, 1997.
8. Item 27a (Schedule of Assets Held for Investment Purposes at December
31, 1997) (Schedule 1).
9. Item 27d (Schedule of Reportable Transactions for the Year Ended
December 31, 1997) (Schedule 2).
Each of the statements set forth above has been prepared in accordance with
the financial reporting requirements of the Employee Retirement Income Security
Act of 1974, as amended.
-1-
<PAGE>
EXHIBITS
23.1 Consent of PricewaterhouseCoopers LLP, Independent Accountants
-2-
<PAGE>
STB SYSTEMS, INC. 401(k)
SAVINGS PLAN
FINANCIAL STATEMENTS
DECEMBER 31, 1997 AND 1996
F-1
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Participants and Administrator of the
STB Systems, Inc. 401(k) Savings Plan
In our opinion, the accompanying statements of net assets available for plan
benefits and the related statement of changes in net assets available for plan
benefits present fairly, in all material respects, the net assets available
for plan benefits of the STB Systems, Inc. 401(k) Savings Plan at December
31, 1997 and 1996, and the changes in net assets available for plan benefits
for the year ended December 31, 1997, in conformity with generally accepted
accounting principles. 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 of these
statements in accordance with generally accepted auditing standards which
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, assessing the accounting
principles used and significant estimates made by management, and evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for the opinion expressed above.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information included in
Schedules I and II is presented for purposes of additional analysis and is not
a required part of the basic financial statements but is additional
information required by ERISA. The Fund Information in the statements of net
assets available for benefits with fund information and the statement of
changes in net assets available for benefits with fund information is
presented for purposes of additional analysis rather than to present the net
assets available for plan benefits and changes in net assets available for
benefits of each fund. Schedules I and II and the 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/ Pricewaterhouse Coopers LLP
- ---------------------------------
Pricewaterhouse Coopers LLP
Dallas, Texas
July 10, 1998
F-2
<PAGE>
STB SYSTEMS, INC 401(k) SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
December 31,
----------------------------------
1997 1996
---------------- ----------------
<S> <C> <C>
ASSETS
Investments (Note 3) $ 2,357,944 $ 1,339,551
Participant notes receivable 30,446 22,647
Contributions receivable:
Participants 63,795 26,085
Employer 16,240 4,042
---------------- ----------------
Total contributions receivable 80,035 30,127
---------------- ----------------
Net assets available for
plan benefits $ 2,468,425 $ 1,392,325
---------------- ----------------
---------------- ----------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
F-3
<PAGE>
STB SYSTEMS, INC 401(k) SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended
December 31,
1997
-------------------
<S> <C>
Additions to net assets:
Participant contributions $ 701,123
Employer contributions 169,773
Investment income:
Net realized and unrealized gains 235,124
Interest and dividend income 18,961
-------------------
Total investment income 254,085
Other (7,917)
-------------------
Total additions 1,117,064
Deductions from net assets:
Distributions paid to participants 40,964
-------------------
Net increase 1,076,100
-------------------
Net assets available for plan benefits:
Beginning of year 1,392,325
-------------------
End of year $ 2,468,425
-------------------
-------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
F-4
<PAGE>
STB SYSTEMS, INC 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. DESCRIPTION OF PLAN
The following description of the STB Systems, Inc. 401(k) Savings Plan
(the "Plan") provides only general information. Participants should refer
to the Plan document for a more complete description of the Plan's
provisions.
GENERAL
The Plan, established in 1991, is a nondiscriminatory defined
contribution plan for all employees of STB Systems, Inc. (the
"Company") who have completed one month of credited service and elect to
participate. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA). It has been amended to
incorporate legislative changes required by the various tax acts enacted
since 1984.
CONTRIBUTIONS
Eligible employees may elect to make contributions to the Plan by means
of compensation reductions of up to 15% of their compensation. Employees
may allocate their contributions to investment options in 1% increments.
Effective January 1, 1997 the Company increased the amount of
contributions it matches from 25% to 50% of each dollar of employee tax
deferred contributions up to a maximum of 4% of each employee's annual
pay.
PARTICIPANTS' ACCOUNTS
Participants' accounts are credited with the participants' contributions
and an allocation of (a) the Company's contribution and (b) Plan
earnings. Allocations are based on participant earnings or account
balances. The benefit to which a participant is entitled is the benefit
that can be provided from the participant's vested account.
VESTING OF CONTRIBUTIONS
Participants' contributions to the Plan are 100% vested at all times.
Employer contributions to the Plan are vested in accordance with a Plan
document schedule based on the participant's length of service with the
Company. The schedule provides for full vesting after five years of
credited service.
INVESTMENT OPTIONS
Eligible participants have eleven investment options as detailed in the
Statement of Net Assets Available for Plan Benefits with Fund
Information. See Note 4 for discussion of the change in the Plan's
trustee that occurred during 1997.
The assets from a predecessor custodian remain with New England Company
as custodian and are included in Plan assets. These assets are a prior
fixed income option. No further contributions can be made to this
investment option.
Participants may change their investment options daily.
F-5
<PAGE>
STB SYSTEMS, INC 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
PAYMENT OF BENEFITS
In the event of a participant's termination of employment, retirement,
disability, or death, the participant or beneficiary may elect to receive
an amount equal to the vested value of their account in either a lump-sum
or periodic payments of substantially equal installments at least
annually.
PARTICIPANT NOTES RECEIVABLE
Participants may borrow from their fund accounts a minimum of $1,000 up
to a maximum equal to the lesser of (a) or (b) below:
(a) $50,000 reduced by the highest outstanding balance of loans during
the one-year period ending on the day before the new loan is made;
(b) The greater of (1) or (2) below:
(1) One-half of the participant's vested account balance;
(2) $10,000.
All loans are required to be repaid within five years of the loan. The
loans are secured by the balance in the participant's account and bear a
reasonable rate of interest as determined by the Loan Administrator.
Principal and interest are repaid through payroll deductions. The
Principal Financial Group is the custodian of the Loan Account.
FORFEITED ACCOUNTS
At December 31, 1997 and 1996, forfeited nonvested accounts totaled
$3,610 and $1,346, respectively. These funds were used to reduce future
employer contributions.
EXPENSES OF ADMINISTERING THE PLAN
The Company pays expenses incurred in the administration of the Plan.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The financial statements of the Plan are prepared in accordance with
generally accepted accounting principles. Assets are stated at market
value; unrealized appreciation and depreciation of the assets are
reflected in the asset balances. Gains or losses on investments are
realized at the time of sale.
F-6
<PAGE>
STB SYSTEMS, INC 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
FEDERAL INCOME TAXES
Management of the Company believes that the Plan is qualified under
Section 401(a) of the Internal Revenue Code and therefore believes the
trust is exempt from taxation under Section 501(a). The Internal Revenue
Service granted a favorable letter of determination to the Plan in
October, 1993. Generally, contributions to a qualified plan are
deductible by the Company when made, earnings of the trust are tax
exempt, and participants are not taxed on their benefits until withdrawn
from the Plan.
Management of the Company is unaware of any variations in the operations
of the Plan from the terms of the Plan document as amended. The Plan has
complied with the fidelity bonding requirements of ERISA.
VALUATION OF SECURITIES
Valuation of securities is based on the last recorded sales price at
year-end, as reported by the principal security exchange on which the
security is traded. Securities transactions are recorded on a trade-date
basis.
RECOGNITION OF INTEREST INCOME
Interest is recognized on an accrual basis.
DETERMINATION OF UNREALIZED GAIN OR LOSS ON INVESTMENTS
Unrealized appreciation or depreciation in the fair value of investments
held at year-end and gain or loss on sale of investments during the year
are determined using the fair value at the beginning of the year or
purchase price if acquired during the year.
REPORTABLE TRANSACTIONS
For the Plan year 1997, the reportable transactions as defined in Item
27d and Part V of Form 5500 are listed in Schedule II.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements.
Actual results could differ from these estimates.
PAYMENT OF BENEFITS
Benefits are recorded when paid.
F-7
<PAGE>
STB SYSTEMS, INC 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
TERMINATION OF THE PLAN
Although it has not expressed any intent to do so, the Employer has the
right under the Plan to discontinue its contributions or to terminate the
Plan at any time without any liability whatsoever for such discontinuance
or termination. In the event of Plan termination, participants are
entitled to 100 percent of their vested individual and Employer accounts.
RECLASSIFICATIONS
Certain reclassifications have been made to the amounts reported in the
prior year in order to conform to current year presentation.
3. INVESTMENTS
Prior to July 1, 1997, investments were maintained by Nationwide Life
Insurance Company as custodian, except for certain assets from a
predecessor custodian which are held by New England Company.
Effective July 1, 1997, investments are maintained by The Principal
Financial Group as custodian, except for certain assets from a
predecessor custodian which are held by New England Company.
The fair values of individual investments that represent five percent or
more of the Plan's net assets available for benefits at December 31, 1997
and 1996 were as follows:
<TABLE>
<CAPTION>
1997 1996
---------------- --------------
<S> <C> <C>
Stock Index 500 Fund $ 276,104
Large Company Growth Fund 182,694
International Stock Fund 133,399
Stable Value Fund 276,428
Vanguard Prime Cap 284,871
Vanguard Windsor 183,908
Vanguard Asset Allocation 244,857
Company Common Stock 440,168 $ 146,891
Fidelity Magellan 470,899
Fidelity Puritan 298,370
Fixed Fund 120,443
Twentieth Century Growth 146,679
New England Guaranteed 97,865
</TABLE>
4. CHANGE OF TRUSTEE AND RECORD-KEEPER
Effective July 1, 1997, the Plan changed trustees from Southwest
Guaranty Trust Company to Delaware Charter Guarantee & Trust Company.
In addition, the Plan changed record-keepers from Cecil & Co. to The
Principal Financial Group.
F-8
<PAGE>
STB SYSTEMS, INC 401(k) SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
AT DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Bond & Stock Large Co. Small Co. Int'l Stable
Total Mortgage Index 500 Growth Blend Stock Value
Plan Fund Fund Fund Fund Fund Fund
------------ ----------- ----------- ----------- ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments $2,357,944 $45,928 $276,104 $182,694 $114,830 $133,399 $276,428
Participant notes 30,446 - - - - - -
receivable
Contributions
(repayments)
receivable:
Participants 63,795 1,877 8,279 6,522 6,155 4,115 3,072
Employer 16,240 461 2,019 1,238 1,499 998 868
------------ ----------- ----------- ----------- ------------ ------------ -----------
Total
contributions
receivable 80,035 2,338 10,298 7,760 7,654 5,113 3,940
------------ ----------- ----------- ----------- ------------ ------------ -----------
Net assets
available for
plan benefits $2,468,425 $48,266 $286,402 $190,454 $122,484 $138,512 $280,368
------------ ----------- ----------- ----------- ------------ ------------ -----------
------------ ----------- ----------- ----------- ------------ ------------ -----------
</TABLE>
<TABLE>
<CAPTION>
Vanguard Company New
TRP New Vanguard Vanguard Asset Common England Loan
Horizons Prime Cap Windsor Allocation Stock Guaranteed Account
----------- ------------ ----------- ----------- ----------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments $73,399 $284,871 $183,908 $244,857 $440,168 $101,358 $ -
Participant notes - - - - - - 30,446
receivable
Contributions
(repayments)
receivable:
Participants 3,680 10,661 6,263 6,509 8,954 - (2,292)
Employer 698 2,325 1,289 1,563 3,282 - -
----------- ------------ ------------ ----------- ----------- ------------- -----------
Total
contributions
receivable 4,378 12,986 7,552 8,072 12,236 - (2,292)
----------- ------------ ------------ ----------- ----------- ------------- -----------
Net assets
available for
plan benefits $77,777 $297,857 $191,460 $252,929 $452,404 $101,358 $28,154
----------- ------------ ------------ ----------- ----------- ------------- -----------
----------- ------------ ------------ ----------- ----------- ------------- -----------
</TABLE>
F-9
<PAGE>
STB SYSTEMS, INC 401(k) SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
AT DECEMBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Company
Total Common Fidelity Fidelity Bond Fund Fixed
Plan Stock Magellan Puritan of America Fund
------------ ----------- ------------ ------------ ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments $1,339,551 $146,891 $470,899 $298,370 $53,205 $120,443
Participant notes receivable 22,647 - - - - -
Contributions (repayments)
receivable:
Participants 26,085 701 9,936 7,381 1,138 3,552
Employer 4,042 143 1,347 1,092 187 588
------------ ----------- ------------ ------------ ------------ ----------
Total contributions
receivable 30,127 844 11,283 8,473 1,325 4,140
------------ ----------- ------------ ------------ ------------ ----------
Net assets available
for plan benefits $1,392,325 $147,735 $482,182 $306,843 $54,530 $124,583
------------ ----------- ------------ ------------ ------------ ----------
------------ ----------- ------------ ------------ ------------ ----------
</TABLE>
<TABLE>
<CAPTION>
Twentieth New
Century England Money Loan
Growth Guaranteed Market Account
---------- ------------- ---------- -----------
<S> <C> <C> <C> <C>
ASSETS
Investments $146,679 $97,865 $5,199 $ -
Participant notes receivable - - - 22,647
Contributions (repayments)
receivable:
Participants 4,241 - 419 (1,283)
Employer 629 - 56 -
---------- ------------- ---------- -----------
Total contributions
receivable 4,870 - 475 (1,283)
---------- ------------- ---------- -----------
Net assets available
for plan benefits $151,549 $97,865 $5,674 $21,364
---------- ------------- ---------- -----------
---------- ------------- ---------- -----------
</TABLE>
F-10
<PAGE>
STB SYSTEMS, INC 401(k) SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND
INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION> Company Twentieth
Total Common Fidelity Fidelity Bond Fund Fixed Century
Plan Stock Magellan Puritan of America Fund Growth
---------- ---------- --------- --------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets:
Contributions by:
Participants $ 701,123 $ 87,140 $ 88,619 $ 56,921 $ 12,734 $ 7,184 $ 49,032
STB Systems, Inc. 169,773 24,999 24,356 18,322 3,628 5,435 14,211
Net realized and unrealized
gains (losses) 235,124 14,385 104,083 49,359 3,417 - 44,211
Interest and dividend income 18,961 - - - - 2,889 -
Loan repayments - 1,373 2,575 1,504 130 772 1,131
Other (7,917) (1,059) (597) (511) (47) (59) (641)
Interfund transfers - 65,539 (8,339) 8,339 - - -
---------- ---------- --------- --------- ---------- --------- ---------
Total additions 1,117,064 192,377 210,697 133,934 19,862 16,221 107,944
---------- ---------- --------- --------- ---------- --------- ---------
Transfers (to) from other trustee - 112,910 (674,726) (431,564) (73,762) (137,205) (252,369)
Deductions from net assets:
Distributions paid to participants 40,964 618 11,891 7,178 630 3,354 5,666
Loans to participants - - 6,262 2,035 - 245 1,458
---------- ---------- --------- --------- ---------- --------- ---------
40,964 618 18,153 9,213 630 3,599 7,124
---------- ---------- --------- --------- ---------- --------- ---------
Net increase (decrease) 1,076,100 304,669 (482,182) (306,843) (54,530) (124,583) (151,549)
Net assets available for plan benefits:
Beginning of year 1,392,325 147,735 482,182 306,843 54,530 124,583 151,549
---------- ---------- --------- --------- ---------- --------- ---------
End of year $2,468,425 $452,404 $ - $ - $ - $ - $ -
---------- ---------- --------- --------- ---------- --------- ---------
---------- ---------- --------- --------- ---------- --------- ---------
</TABLE>
<TABLE>
<CAPTION> New Bond & Stock Large Co. Small Co.
England Money Loan Mortgage Index 500 Growth Blend
Guaranteed Market Account Fund Fund Fund Fund
---------- --------- -------- -------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets:
Contributions by:
Participants $ - $ 11,802 $ - $ 9,934 $ 63,599 $ 41,437 $ 36,197
STB Systems, Inc. - 1,581 - 2,658 12,330 7,368 8,518
Net realized and unrealized
gains (losses) - - - 1,624 14,451 14,507 (3,520)
Interest and dividend income 4,255 323 1,841 - - - -
Loan repayments - - (16,186) 184 1,040 1,118 1,102
Other (15) 1,855 - (292) (1,472) (1,038) (677)
Interfund transfers - 2,472 - (622) 964 (1,413) (11,733)
---------- --------- -------- -------- ---------- ----------- ----------
Total additions 4,240 18,033 (14,345) 13,486 90,912 61,979 29,887
---------- --------- -------- -------- ---------- ----------- ----------
Transfers (to) from other trustee - (23,400) - 35,852 198,278 134,917 92,867
Deductions from net assets:
Distributions paid to participants 747 307 665 173 400 461 270
Loans to participants - - (21,800) 899 2,388 5,981 -
---------- --------- -------- -------- ---------- ----------- ----------
747 307 (21,135) 1,072 2,788 6,442 270
---------- --------- -------- -------- ---------- ----------- ----------
Net increase (decrease) 3,493 (5,674) 6,790 48,266 286,402 190,454 122,484
Net assets available for plan benefits:
Beginning of year 97,865 5,674 21,364 - - - -
---------- --------- -------- -------- ---------- ----------- ----------
End of year $101,358 $ - $ 28,154 $48,266 $286,402 $190,454 $122,484
---------- --------- -------- -------- ---------- ----------- ----------
---------- --------- -------- -------- ---------- ----------- ----------
</TABLE>
<TABLE>
<CAPTION>
Int'l Vanguard
Stock Stable TRP NEW Vanguard Vanguard Asset
Fund Value Horizons Prime Cap Windsor Allocation
-------- -------- -------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets:
Contributions by:
Participants $ 31,187 $ 19,951 $21,206 $ 72,276 $ 40,578 $ 51,326
STB Systems, Inc. 5,997 5,451 4,063 14,059 7,418 9,379
Net realized and unrealized
gains (losses) (1,801) 4,784 (2,773) (17,676) 5,095 4,978
Interest and dividend income - - - 1,394 2,576 5,683
Loan repayments 514 500 868 1,314 996 1,065
Other (865) (684) (181) (717) (402) (515)
Interfund transfers (29,575) (303) (5,595) (17,809) (1,034) (891)
-------- -------- -------- --------- --------- ----------
Total additions 5,457 29,699 17,588 52,841 55,227 71,025
-------- -------- -------- --------- --------- ----------
Transfers (to) from other trustee 133,222 256,597 60,852 247,544 136,827 183,160
Deductions from net assets:
Distributions paid to participants 167 5,902 161 1,483 594 297
Loans to participants - 26 502 1,045 - 959
-------- -------- -------- --------- --------- ----------
167 5,928 663 2,528 594 1,256
-------- -------- -------- --------- --------- ----------
Net increase (decrease) 138,512 280,368 77,777 297,857 191,460 252,929
Net assets available for plan benefits:
Beginning of year - - - - - -
-------- -------- -------- --------- --------- ----------
End of year $138,512 $280,368 $77,777 $297,857 $191,460 $252,929
-------- -------- -------- --------- --------- ----------
-------- -------- -------- --------- --------- ----------
</TABLE>
F-11
<PAGE>
SCHEDULE I
STB SYSTEMS, INC 401(k) SAVINGS PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Identity of issue, borrower, Description of investment including maturity date Current
lessor or similar party rate of interest, collateral, par, or maturity value Cost value
- -------------------------------- ------------------------------------------------------- ---------------- ----------------
<S> <C> <C> <C>
The Principal Financial Group* Bond & Mortgage Mutual Fund $ 44,443 $ 45,928
The Principal Financial Group* Stock Index 500 Mutual Fund 262,147 276,104
The Principal Financial Group* Large Co. Growth Mutual Fund 168,809 182,694
The Principal Financial Group* Small Co. Blend Mutual Fund 117,997 114,830
The Principal Financial Group* International Stock Mutual Fund 135,062 133,399
The Principal Financial Group* Stable Value Mutual Fund 272,372 276,428
T. Rowe Price New Horizon Mutual Fund 77,673 73,399
Vanguard Primecap Mutual Fund 309,352 284,871
Vanguard Windsor Mutual Fund 191,542 183,908
Vanguard Asset Allocation Mutual Fund 250,989 244,857
STB Systems, Inc. * Common Stock 601,933 440,168
New England Guaranteed New England Guaranteed (5.85% guaranteed
interest rate of maturities in 1998, 4.90%
guaranteed interest rate for maturities in 1999) 99,768 101,358
Participant Loans General purpose loans, maturing from 2/98 to
8/00 bearing interest at 9.25% to 10.5% - 30,446
---------------- ----------------
$2,532,087 $2,388,390
---------------- ----------------
---------------- ----------------
</TABLE>
* Parties denoted are known to be parties-in-interest
F-12
<PAGE>
SCHEDULE II
Page 1 of 2
STB SYSTEMS, INC 401(k) SAVINGS PLAN
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(a) (b) (c) (d) (g) (h) (i)
Current
value
of asset on
Identity of Purchase Selling Cost of transaction Net
party involved Description of asset price price asset date gain
- --------------------------------- ---------------------------- ------------ ------------ ----------- -------------- --------
<S> <C> <C> <C> <C> <C> <C>
INDIVIDUAL TRANSACTIONS:
The Principal Financial Group* Money Market $ 87,304 - $ 87,304 $ 87,304 -
The Principal Financial Group* Money Market - $ 87,304 87,107 87,304 $ 197
The Principal Financial Group* Money Market 1,455,822 - 1,455,822 1,455,822 -
The Principal Financial Group* Money Market 137,205 - 137,205 137,205 -
The Principal Financial Group* Money Market - 1,593,027 1,589,356 1,593,027 3,671
The Principal Financial Group* Stock Index 500 Fund 198,278 - 198,278 198,278 -
The Principal Financial Group* Large Co. Growth Fund 134,917 - 134,917 134,917 -
The Principal Financial Group* Small Co. Blend Fund 92,867 - 92,867 92,867 -
The Principal Financial Group* International Stock Fund 133,222 - 133,222 133,222 -
The Principal Financial Group* Stable Value Fund 252,458 - 252,458 252,458 -
The Principal Financial Group* Vanguard Prime Cap 247,544 - 247,544 247,544 -
The Principal Financial Group* Vanguard Windsor 136,827 - 136,827 136,827 -
The Principal Financial Group* Vanguard Asset Allocation 183,159 - 183,159 183,159 -
The Principal Financial Group* Company Common Stock 284,227 - 284,227 284,227 -
The Principal Financial Group* Company Common Stock 284,517 - 284,517 284,517 -
The Principal Financial Group* Company Common Stock - 283,202 226,347 283,202 56,855
The Principal Financial Group* Company Common Stock 112,910 - 112,910 112,910 -
Nationwide Life Insurance Co. Fidelity Magellan - 674,728 570,645 674,728 104,083
Nationwide Life Insurance Co. Fidelity Puritan - 431,562 382,204 431,562 49,358
Nationwide Life Insurance Co. Bond Fund of America - 73,760 70,344 73,760 3,416
Nationwide Life Insurance Co. Fixed Fund - 137,205 137,205 137,205 -
Nationwide Life Insurance Co. Twentieth Century Growth - 252,370 208,159 252,370 44,211
</TABLE>
F-13
<PAGE>
SCHEDULE II
Page 2 of 2
STB SYSTEMS, INC 401(k) SAVINGS PLAN
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(a) (b) (c) (d) (g) (h) (i)
Current
value of
asset on
Identity of Purchase Selling Cost of transaction Net
party involved Description of asset price price asset date gain
- -------------------------------- ---------------------------- ----------- ----------- ---------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
SERIES TRANSACTIONS:
The Principal Financial Group* Money Market 1,684,479 - 1,684,479 1,684,479 -
The Principal Financial Group* Money Market - 1,688,418 1,684,479 1,688,418 3,939
The Principal Financial Group* Stock Index 500 Fund 266,452 - 266,452 266,452 -
The Principal Financial Group* Large Co. Growth Fund 177,452 - 177,479 177,479 -
The Principal Financial Group* Small Co. Blend Fund 131,911 - 131,911 131,911 -
The Principal Financial Group* International Stock Fund 166,753 - 166,753 166,753 -
The Principal Financial Group* Stable Value Fund 280,159 - 280,159 280,159 -
The Principal Financial Group* TRP New Horizons 84,968 - 84,968 84,968 -
The Principal Financial Group* Vanguard Prime Cap 336,192 - 336,192 336,192 -
The Principal Financial Group* Vanguard Windsor 195,153 - 195,153 195,153 -
The Principal Financial Group* Vanguard Asset Allocation 253,652 - 253,652 253,652 -
The Principal Financial Group* Company Common Stock 831,510 - 831,510 831,510 -
The Principal Financial Group* Company Common Stock - 286,675 229,577 286,675 57,098
Nationwide Life Insurance Co. Fidelity Magellan 126,835 - 126,835 126,835 -
Nationwide Life Insurance Co. Fidelity Magellan - 701,816 597,733 701,816 104,083
Nationwide Life Insurance Co. Fidelity Puritan 93,559 - 93,559 93,559 -
Nationwide Life Insurance Co. Fidelity Puritan - 441,287 391,929 441,287 49,358
Nationwide Life Insurance Co. Bond Fund of America - 74,437 71,021 74,437 3,416
Nationwide Life Insurance Co. Fixed Fund - 142,068 142,068 142,068 -
Nationwide Life Insurance Co. Twentieth Century Growth - 260,134 215,923 260,134 44,211
</TABLE>
This supplemental schedule lists transactions in excess of 5% of the fair market
values of the plan assets at the beginning of the year as required by the
Department of Labor Rules and Regulations for Reporting and Disclosure.
*Parties denoted are known to be parties-in-interest.
Columns (e) Lease Rental and (f) Expense Incurred with Transactions are not
applicable and, therefore, have been excluded.
F-14
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees of the STB Systems 401(k) Savings Plan have duly caused this Annual
Report to be signed on its behalf by the undersigned, hereunto duly authorized.
STB SYSTEMS, INC. 401(k) SAVINGS PLAN
By: STB Systems, Inc.,
Plan Sponsor
Dated: July 14, 1998 By: /s/ Bryan F. Keyes
---------------------------------
Printed Name: Bryan F. Keyes
-----------------------
Title: Vice President of
Administration and
General Counsel
-----------------------------
<PAGE>
INDEX TO EXHIBITS
<TABLE>
Sequentially
Exhibit Number Numbered Page
- -------------- -------------
<S> <C> <C>
23.1 Consent of PricewaterhouseCoopers LLP, Independent Accountants
</TABLE>
<PAGE>
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 dated February 6, 1996 (No. 333-1148) of STB Systems,
Inc., of our report dated July 10, 1998 appearing in this annual report of
the STB Systems, Inc. 401(k) Savings Plan on Form 11-K for the year ended
December 31, 1997.
/s/ PricewaterhouseCoopers LLP
- -------------------------------------
PricewaterhouseCoopers LLP
Dallas, Texas
July 13, 1998
