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 June 30, 1994
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 1-5571
------
TANDY EMPLOYEES INVESTMENT PLAN
(full title of plan)
TANDY CORPORATION
1800 One Tandy Center
Fort Worth, Texas 76102
(Name of issuer and address of principal executive office)
<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN
FORT WORTH, TEXAS
REPORT OF EXAMINATION
JUNE 30, 1994
<PAGE>
C O N T E N T S
---------------
Page
----
CERTIFIED PUBLIC ACCOUNTANT'S REPORT . . . . . . . . . 4
STATEMENT OF FINANCIAL CONDITION . . . . . . . . . . . 5
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY . . . . 6
NOTES TO FINANCIAL STATEMENTS . . . . . . . . . . . . 7-13
ADDITIONAL INFORMATION . . . . . . . . . . . . . . . . 14-16
SIGNATURE PAGE . . . . . . . . . . . . . . . . . . . . 17
INDEX TO EXHIBITS . . . . . . . . . . . . . . . . . . 18
CONSENT OF INDEPENDENT ACCOUNTANT . . . . . . . . . . 19
<PAGE>
{Curtis B. Morrison Letterhead}
The Administrative Committee and Participants of
Tandy Employees Investment Plan
Fort Worth, Texas
INDEPENDENT AUDITOR'S REPORT
----------------------------
I have audited the accompanying statement of financial
condition of the Tandy Employees Investment Plan as of June
30, 1994 and 1993, and the related statement of income and
changes in the plan equity for the years ended June 30, 1994,
1993 and 1992. These financial statements are the
responsibility of the Plan's management. My responsibility
is to express an opinion on these financial statements based
on my audit.
I conducted my audit in accordance with generally accepted
auditing standards. Those standards require that I 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. I believe that my audit provides a
reasonable basis for my opinion.
In my opinion, the financial statements referred to above
present fairly, in all material respects, the financial
status of the Tandy Employees Investment Plan as of June 30,
1994 and 1993, and results of its changes therein for the
years ended June 30, 1994, 1993 and 1992, in conformity with
generally accepted accounting principles.
My audit was 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 of non-exempt 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. The supplemental schedules have
been subjected to the auditing procedures applied in the
audit of the basic financial statements and, in my opinion,
are fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
/s/Curtis B. Morrison, CPA
CURTIS B. MORRISON, CPA
Fort Worth, Texas
September 17, 1994
<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN
FORT WORTH, TEXAS
STATEMENT OF FINANCIAL CONDITION
JUNE 30, 1994 AND 1993
PLAN ASSETS
-----------
1994 1993
-------------- --------------
Investment in Securities of
Participating Employer (Note B):
Common Stock (Cost $895,405.79 in
1994 and $1,235,433.15 in 1993) $18,204,731.25 $21,816,656.75
-------------- --------------
Investments in Securities of
Unaffiliated Issuers (Note B):
Marketable Securities -
Common Stock
(Cost $48,568.73 in 1993) $ 0 $ 1,223,456.25
Other Securities - Short Term
Money Market Fund (Cost $790,952.83
in 1994 and $69,073.16 in 1993) 790,952.83 69,073.16
-------------- --------------
$ 790,952.83 $ 1,292,529.41
-------------- --------------
Accrued Receivables:
Interest $ 2,593.54 $ 162.12
-------------- --------------
Plan Assets:
Tandy Employees Investment Plan
(Special Account) (Note F) $ 299,774.98 $ 286,212.20
-------------- --------------
$19,298,052.60 $23,395,560.48
============== ==============
LIABILITIES AND PLAN EQUITY
---------------------------
Liabilities $ 0 $ 0
Plan Equity:
Participants' Interest in Tandy
Employees Investment Plan 18,998,277.62 23,109,348.28
Participants' Interest in Tandy
Employees Investment Plan (Special
Account) (Note F) 299,774.98 286,212.20
-------------- --------------
$19,298,052.60 $23,395,560.48
============== ==============
The accompanying notes are an integral part of these financial statements.
<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN
FORT WORTH, TEXAS
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
FOR THE YEARS ENDED JUNE 30, 1994, 1993 AND 1992
1994 1993 1992
-------------- -------------- --------------
Investment Income:
Interest-Other $ 33,451.69 $ 6,537.07 $ 110,038.01
Dividends-Employer 377,054.10 448,912.65 471,579.90
-------------- -------------- --------------
$ 410,505.79 $ 455,449.72 $ 581,617.91
Less:Interest Expense 0 0 0
-------------- -------------- --------------
$ 410,505.79 $ 455,449.72 $ 581,617.91
-------------- -------------- --------------
Realized Gain (Loss) on
Securities (Note C):
Employer Securities $ 7,221,927.58 $ 703,322.50 $ 305,497.50
Other Securities 955,958.37 0 0
-------------- -------------- --------------
$ 8,177,885.95 $ 703,322.50 $ 305,497.50
-------------- -------------- --------------
Increase (Decrease) in
Unrealized Appreciation
of Investments(Note D) $<4,446,785.66> $ 2,310,392.23 $<3,585,679.89>
--------------- -------------- ---------------
Contributions(Note A) $ 0 $ 0 $ 0
-------------- -------------- --------------
Other Additions:
Appreciation in
Value over Cost
Distributed in
Withdrawals $ 25,025.96 $ 183,121.03 $ 436,095.45
Transfer from Other
Plans (Note E) 0 0 242,595.47
-------------- -------------- --------------
$ 25,025.96 $ 183,121.03 $ 678,690.92
-------------- -------------- --------------
TOTAL $ 4,166,632.04 $ 3,652,285.48 $<2,019,873.56>
Less:
Withdrawals of
Participants' Interest 8,277,702.70 1,336,955.91 4,249,584.43
-------------- -------------- --------------
Net Increase (Decrease)
in Plan for the Years
Ending 6-30-94/93/92 $<4,111,070.66> $ 2,315,329.57 $<6,269,457.99>
Plan Equity at Beginning
of Year 7-1-93/92/91 23,109,348.28 20,794,018.71 27,063,476.70
-------------- -------------- --------------
Plan Equity at End of
Year 6-30-94/93/92 $18,998,277.62 $23,109,348.28 $20,794,018.71
============== ============== ==============
The accompanying notes are an integral part of these financial statements.
<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED JUNE 30, 1994, 1993 AND 1992
NOTE A - DESCRIPTION OF THE PLAN
The following description of the Tandy Employees Investment
Plan (the "Plan") provides only general information.
Participants should refer to the Plan prospectus for a more
complete description of the Plan's provisions.
General
-------
Effective June 30, 1982, at the end of the Plan's fiscal
year, the Tandy Employees Investment Plan ceased accepting
applications and contributions. All employees eligible for
participation in the Plan became eligible for participation
in the new Tandy Employees Deferred Salary and Investment
Plan which became effective July 1, 1982 (Reg. No. 33-39749).
Also, see Note E.
Contributions
-------------
Through June 30, 1982, Tandy Corporation made contributions
to the Plan equal to 80% of the participating employees'
qualifying contributions. The participating employee
contributed either 5% (qualifying contribution) or 10% (5%
qualifying and 5% voluntary contributions).
Participants' Accounts
----------------------
Participants' accounts are valued as of the last day of each
March, June, September and December. Each participant is
mailed a quarterly statement showing his contributions to
date, Company contributions to date, total contributions to
date and the market value of his account. Each participant
is also mailed a copy of the Tandy Corporation annual report,
and the summary annual report for the Plan.
Vesting
-------
The participants' accounts are fully vested at the end of
each calendar quarter, except for amounts credited to the
account because of fraud or mistake of fact.
Payments of Benefits
--------------------
Payroll deductions made for a participant's Qualifying or
Voluntary Contributions to the Plan were a part of his
current compensation and, as such, were subject to
withholding for federal income tax purposes.
A participant is not subject to federal income tax on Company
contributions to the Plan, or other accumulations, until he
makes a withdrawal from the Plan. A withdrawal is generally
taxed only to the extent it exceeds the participant's
aggregate contributions.
The taxable portion of a "lump-sum distribution" and certain
"partial distributions" may not be subject to tax upon
receipt by a participant if the distribution is rolled over
into an IRA or another qualified plan within the prescribed
time period. If a lump-sum distribution is not rolled over,
a special 5-year averaging tax (intended to minimize the tax
burden) may be available for some participants with respect
to the taxable portion of such distribution. As a general
rule, only one lump-sum distribution which is received after
attaining age 59-1/2 is eligible for the special 5-year
averaging (computed under the tax rates contained in the Tax
Reform Act of 1986) or the 10-year averaging (computed under
prior law tax rates).
If a lump-sum distribution consists in part of securities of
Tandy Corporation and InterTAN Inc., the portion of such
distribution which represents net unrealized appreciation of
such securities will not be currently taxable to the
recipient for federal income tax purposes (although a
participant may elect to include such appreciation in income,
if desired). Upon a subsequent disposition of such
securities, gain or loss will be determined generally by
reference to their basis when they were acquired by the Plan.
An additional 10% income tax is imposed on certain early
distributions included in gross income prior to attaining age
59-1/2, death or disability. The value of a participant's
interest in the Plan is includable in his gross estate upon
his death.
Valuation of Securities
-----------------------
All securities except Tandy Corporation common stock are
valued at the closing price according to the respective stock
exchanges.
Tandy Corporation stock is valued at the closing price on the
New York Stock Exchange less 1/4 point.
All other securities are valued at cost.
SCHEDULE OF INVESTMENTS IN SECURITIES OF
----------------------------------------
PARTICIPATING EMPLOYER
----------------------
NO. OF VALUE
SHARES COST 6-30-94
------- ----------- --------------
COMMON STOCK
------------
Industrial
----------
Tandy Corporation
Common Stock 531,525 $895,405.79 $18,204,731.25
=========== ==============
SCHEDULE OF INVESTMENTS IN SECURITIES OF
----------------------------------------
UNAFFILIATED ISSUERS
--------------------
MARKETABLE SECURITIES
---------------------
VALUE
COST 6-30-94
----------- -----------
OTHER SECURITIES
----------------
Money Market Fund
-----------------
Short-Term Money Market Fund
AIM Short-Term Investments Co. $790,952.83 $790,952.83
=========== ===========
Income Tax Status
-----------------
The Plan is a qualified plan under Section 401 of the
Internal Revenue Code and is exempt from federal income taxes
under Section 501.
NOTE C - REALIZED GAIN ON SECURITIES
The realized gain or loss from the sale of securities was as follows:
1994 1993 1992
------------- ----------- -----------
Participating Employer
Securities:
Sales Price $7,560,762.50 $752,187.50 $324,875.00
Less Cost (Average Cost) 338,834.92 48,865.00 19,377.50
------------- ----------- -----------
Net Realized Gain (Loss) $7,221,927.58 $703,322.50 $305,497.50
============= =========== ===========
Unaffiliated Issuers'
Securities:
Sales Price $1,004,497.35 $ 0 $ 0
Less Cost (Average Cost) 48,538.98 0 0
------------- ----------- -----------
Net Realized Gain (Loss) $ 955,958.37 $ 0 $ 0
============= =========== ===========
The realized gain or loss on the sale of securities for
financial statement reporting is prepared in conformity with
generally accepted accounting principles which differ from
the principles for income tax reporting.
Generally accepted accounting principles measure gain or loss
as the difference between the securities' sale price and its
average historical cost. The gain or loss for income tax
reporting is the difference between the securities' sale
price and its current value at the beginning of the plan
year.
A participant's account is increased or decreased by the
realized gain or loss recognized under generally accepted
accounting principles.
NOTE D - UNREALIZED APPRECIATION
The following reflects the increase (decrease) in unrealized
appreciation:
1994 1993 1992
-------------- --------------- ---------------
Unrealized
Appreciation
6-30-94/93/92 $17,309,325.46 $ 21,756,111.12 $ 19,445,718.89
Unrealized
Appreciation
7-1-93/92/91 21,756,111.12 19,445,718.89 23,031,398.78
-------------- --------------- ---------------
Change in
Unrealized
Appreciation
6-30-94/93/92 $<4,446,785.66> $ 2,310,392.23 $< 3,585,679.89>
=============== =============== ================
The unrealized appreciation or depreciation of securities
held for investment for financial statement reporting is
prepared in conformity with generally accepted accounting
principles which differ from the principles for income tax
reporting.
Generally accepted accounting principles measure unrealized
appreciation or depreciation as the difference between the
securities' market value at the Plan's year end and its
historical cost. The unrealized appreciation or depreciation
for income tax reporting is the difference between the
securities' market value at the plan year end and its current
value at the beginning of the plan year.
A participant's account is increased or decreased by the
unrealized appreciation or depreciation recognized under
generally accepted accounting principles.
NOTE E - TRANSFER FROM OTHER PLANS
The Tandy Employees Supplemental Investment Plan ("SIP") was
amended effective June 30, 1991 to terminate the SIP and
consolidate the SIP's assets with the Plan in compliance with
Internal Revenue Code Section 414(1).
NOTE F - TANDY EMPLOYEES INVESTMENT PLAN (SPECIAL ACCOUNT)
These Plan assets were received in 1978 from the Tandycrafts
Employees Investment Plan, a Qualified Plan under Section 401
of the Internal Revenue Code, on the transfer of certain
employees and their investment accounts to Tandy Corporation.
These assets consisted of employer securities and conformed
to both Plan agreements. This Special Account was created in
order to preserve the participants' Tandycrafts Plan cost
basis in the securities transferred for income tax
considerations on subsequent distributions. Attached as
Exhibit B is the report of examination for this Special
Account.
NOTE G - RELATED PARTY TRANSACTIONS
During 1994, 1993 and 1992 common stock of Tandy Corporation
was sold to the Tandy Employees Deferred Salary and
Investment Plan at its current market value on the
transaction date in the amount of $7,560,762.50, $752,187.50
and $324,875.00, respectively.
NOTE H - ADMINISTRATION OF PLAN ASSETS
The Plan's assets are held by the Trustee of the Plan.
The Trustee invests cash received from interest and dividend
income and makes distributions to the participants.
Certain administrative functions are performed by employees
of the Company with no compensation from the Plan.
Administrative expenses and Trustee fees are paid directly by
the Company.
NOTE I - UNIT VALUE
Valuation
Quarter Ending Number of Units per Unit
-------------- --------------- ------------
June 30, 1993 61,337.3271 $376.7583190
September 30, 1993 56,306.7024 453.0099528
December 31, 1993 48,287.6621 607.5566395
March 31, 1994 44,416.7119 455.6331625
June 30, 1994 43,543.5394 436.3053136
<PAGE>
ADDITIONAL INFORMATION
<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN
FORT WORTH, TEXAS
ADDITIONAL INFORMATION
JUNE 30, 1994
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
Description Current
Issuer of Investment Cost Value
------ ------------- ----------- --------------
*Tandy Corporation Common Stock $895,405.79 $18,204,731.25
----------- --------------
AIM Short-Term Short-Term
Investments Co. Money Market
Fund - Fluc-
tuating rate
of interest $790,952.83 $ 790,952.83
----------- --------------
*Party-in-Interest to Plan.
<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN
FORT WORTH, TEXAS
ADDITIONAL INFORMATION
YEAR ENDED JUNE 30, 1994
ITEM 27e - SCHEDULE OF NON-EXEMPT TRANSACTIONS
Identity
of Party Relationship Purchase Selling Lease
Involved to Plan Price Price Rental
-------- ------------ ----------- ------------- ------
Tandy 401(k) Plan $338,834.92 $7,560,762.50 $0
Employees Sponsored
Deferred by Tandy
Salary & Corporation
Investment
Plan
Current
Expenses Value of
Incurred Cost Asset on Gain or
with of Transaction <Loss> on
Transaction Asset Date Transaction
----------- ----------- ------------- -------------
$0 $338,834.92 $7,560,762.50 $7,221,927.58
<PAGE>
SIGNATURES
----------
The Plan: Pursuant to the requirements of the Securities
Exchange Act of 1934, the Administrative Committee has duly
caused this annual report to be signed by the undersigned
hereunto duly authorized.
By /s/ M. Moad
----------------------------
M. Moad
Administrative Committee Member
By /s/ C. Leu
-----------------------------
C. Leu
Administrative Committee Member
Date September 30, 1994
------------------
<PAGE>
Index to Exhibits
Exhibit Description Page
Number of Exhibit Number
------- ----------- ------
23 Consent of 19
Independent
Accountant
<PAGE>
{Curtis B. Morrison Letterhead}
EXHIBIT 23
CONSENT OF INDEPENDENT ACCOUNTANT
---------------------------------
I consent to the incorporation of my report dated June 30,
1994, accompanying the financial statements included in this
annual report on Form 11-K, in the prospectus forming part of
Tandy Corporation's registration statement on Form S-8 for
its Tandy Employees Investment Plan.
/s/ Curtis B. Morrison, CPA
CURTIS B. MORRISON, CPA
Fort Worth, Texas
September 17, 1994
<PAGE>
EXHIBIT B
TANDY EMPLOYEES INVESTMENT PLAN (SPECIAL ACCOUNT)
FORT WORTH, TEXAS
REPORT OF EXAMINATION
JUNE 30, 1994
<PAGE>
C O N T E N T S
---------------
Page
CERTIFIED PUBLIC ACCOUNTANT'S REPORT . . . . . . . . 3
STATEMENT OF FINANCIAL CONDITION . . . . . . . . . . 4
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY . . . 5
NOTES TO FINANCIAL STATEMENTS . . . . . . . . . . . 6-11
ADDITIONAL INFORMATION . . . . . . . . . . . . . . . 12-13
<PAGE>
{Curtis B. Morrison Letterhead}
The Administrative Committee and Participants of
Tandy Employees Investment Plan (Special Account)
Fort Worth, Texas
INDEPENDENT AUDITOR'S REPORT
----------------------------
I have audited the accompanying statement of financial
condition of the Tandy Employees Investment Plan (Special
Account) as of June 30, 1994 and 1993, and the related
statement of income and changes in the plan equity for the
years ended June 30, 1994, 1993 and 1992. These financial
statements are the responsibility of the Plan's management.
My responsibility is to express an opinion on these financial
statements based on my audit.
I conducted my audit in accordance with generally accepted
auditing standards. Those standards require that I 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. I believe that my audit provides a
reasonable basis for my opinion.
In my opinion, the financial statements referred to above
present fairly, in all material respects, the financial
status of the Tandy Employees Investment Plan (Special
Account) as of June 30, 1994 and 1993, and results of its
changes therein for the years ended June 30, 1994, 1993 and
1992, in conformity with generally accepted accounting
principles.
My audit was made for the purpose of forming an opinion on
the basic financial statements taken as a whole. The
supplemental schedule of assets held for investment purposes
is presented for the purpose of additional analysis and is
not a required part of the basic financial statements but is
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.
The supplemental schedule has been subjected to the auditing
procedures applied in the audit of the basic financial
statements and, in my opinion, is fairly stated in all
material respects in relation to the basic financial
statements taken as a whole.
/s/Curtis B. Morrision, CPA
CURTIS B. MORRISON, CPA
Fort Worth, Texas
September 17, 1994
<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN (SPECIAL ACCOUNT)
FORT WORTH, TEXAS
STATEMENT OF FINANCIAL CONDITION
JUNE 30, 1994 AND 1993
PLAN ASSETS
-----------
1994 1993
----------- -----------
Investment in Securities of
Participating Employer (Note B):
Corporate Bonds (Cost $2,070.00
in 1993) $ 0 $ 3,060.00
Common Stock (Cost $5,222.33 in
1994 and $5,222.33 in 1993) 172,483.00 151,080.00
----------- -----------
$172,483.00 $154,140.00
----------- -----------
Investments in Securities of
Unaffiliated Issuers (Note B):
Marketable Securities -
Common Stock (Cost $8,168.59 in
1994 and $8,168.59 in 1993) $ 37,700.50 $ 51,562.88
Other Securities - Short Term
Money Market Fund (Cost $89,279.11
in 1994 and $80,157.85 in 1993 89,279.11 80,157.85
----------- -----------
$126,979.61 $131,720.73
----------- -----------
Accrued Receivables:
Interest $ 312.37 $ 351.47
----------- -----------
$299,774.98 $286,212.20
=========== ===========
LIABILITIES AND PLAN EQUITY
Liabilities $ 0 $ 0
Plan Equity:
Participant's Interest in Tandy
Employees Investment Plan
(Special Account) 299,774.98 286,212.20
----------- -----------
$299,774.98 $286,212.20
=========== ===========
The accompanying notes are an integral part of these
financial statements.
<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN (SPECIAL ACCOUNT)
FORT WORTH, TEXAS
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
FOR THE YEARS ENDED JUNE 30, 1994, 1993 AND 1992
1994 1993 1992
----------- ----------- -----------
Investment Income:
Interest-Employer $ 225.00 $ 300.00 $ 300.00
Interest-Other 2,835.56 2,505.81 3,766.09
Dividends-Employer 3,021.60 3,021.60 3,021.60
---------- ----------- -----------
$ 6,082.16 $ 5,827.41 $ 7,087.69
Less: Interest Expense 0 0 0
----------- ----------- -----------
$ 6,082.16 $ 5,827.41 $ 7,087.69
----------- ----------- -----------
Realized Gain (Loss) on
Securities (Note C):
Employer Securities $ 930.00 $ 0 $ 0
Other Securities 0 0 0
----------- ----------- -----------
$ 930.00 $ 0 $ 0
----------- ----------- -----------
Increase (Decrease) in
Unrealized Appreciation
of Investments (Note E) $ 6,550.62 $ 52,067.38 $<10,700.50>
----------- ----------- ------------
Contributions (Note A) $ 0 $ 0 $ 0
----------- ----------- -----------
Other Additions:
Appreciation in
Value over Cost
Distributed in
Withdrawals $ 0 $ 0 $ 0
----------- ----------- -----------
TOTAL $ 13,562.78 $ 57,894.79 $ <3,612.81>
Less:
Withdrawals of
Participants' Interest 0 0 0
----------- ----------- -----------
Net Increase (Decrease)
in Plan for the Years
Ending 6-30-94/93/92 $ 13,562.78 $ 57,894.79 $ <3,612.81>
Plan Equity at Beginning
of Year 7-1-93/92/91 286,212.20 228,317.41 231,930.22
----------- ----------- -----------
Plan Equity at End of
Year 6-30-94/93/92 $299,774.98 $286,212.20 $228,317.41
=========== =========== ===========
The accompanying notes are an integral part of these
financial statements.
<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN (SPECIAL ACCOUNT)
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED JUNE 30, 1994, 1993 AND 1992
NOTE A - DESCRIPTION OF THE PLAN
General
-------
This Special Account was funded in 1978 from securities and
cash received by two employees of Tandy Corporation that were
former employees of Tandycrafts, Inc., and were involved in
the spin-off of the two corporations. This Special Account
has accepted no employee or employer contributions at any
time.
Participants' Accounts
----------------------
Participants' accounts are valued as of the last day of each
March, June, September and December. Each participant is
mailed a quarterly statement showing his contributions to
date, Company contributions to date, total contributions to
date and the market value of his account. Each participant
is also mailed a copy of the Tandy Corporation annual
report, and the summary annual report for the Plan.
Vesting
-------
The participants' accounts are fully vested at the end of
each calendar quarter, except for amounts credited to the
account because of fraud or mistake of fact.
Payments of Benefits
--------------------
Payroll deductions made for a participant's Qualifying or
Voluntary Contributions to the Plan were a part of his
current compensation and, as such, were subject to
withholding for federal income tax purposes.
A participant is not subject to federal income tax on Company
contributions to the Plan, or other accumulations, until he
makes a withdrawal from the Plan. A withdrawal is generally
taxed only to the extent it exceeds the participant's
aggregate contributions.
The taxable portion of a "lump-sum distribution" and certain
"partial distributions" may not be subject to tax upon
receipt by a participant if the distribution is rolled over
into an IRA or another qualified plan within the prescribed
time period. If a lump-sum distribution is not rolled over,
a special 5-year averaging tax (intended to minimize the tax
burden) may be available for some participants with respect
to the taxable portion of such distribution. As a general
rule, only one lump-sum distribution which is received after
attaining age 59-1/2 is eligible for the special 5-year
averaging (computed under the tax rates contained in the Tax
Reform Act of 1986) or the 10-year averaging (computed under
prior law tax rates).
If a lump-sum distribution consists in part of securities of
Tandy Corporation, Tandycrafts, Inc. and InterTAN Inc., the
portion of such distribution which represents net unrealized
appreciation of such securities will not be currently taxable
to the recipient for federal income tax purposes (although a
participant may elect to include such appreciation in income,
if desired). Upon a subsequent disposition of such
securities, gain or loss will be determined generally by
reference to their basis when they were acquired by the Plan.
An additional 10% income tax is imposed on certain early
distributions included in gross income prior to attaining age
59-1/2, death or disability. The value of a participant's
interest in the Plan is includable in his gross estate upon
his death.
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Valuation of Securities
-----------------------
All securities are valued at the closing price according to
the respective stock exchanges.
All other securities are valued at cost.
SCHEDULE OF INVESTMENTS IN SECURITIES OF
----------------------------------------
PARTICIPATING EMPLOYER
----------------------
NO. OF VALUE
SHARES COST 6-30-94
------ ---- -------
COMMON STOCK
------------
Industrial
----------
Tandy Corporation
Common Stock 5,036 $ 5,222.33 $172,483.00
========== ===========
SCHEDULE OF INVESTMENTS IN SECURITIES OF
----------------------------------------
UNAFFILIATED ISSUERS
--------------------
MARKETABLE SECURITIES
---------------------
NO. OF VALUE
SHARES COST 6-30-94
------ ---- -------
COMMON STOCK
------------
Industrial
----------
InterTAN Inc.
Common Stock 1,003 $ 7,215.77 $ 5,516.50*
Tandycrafts, Inc. 2,384 952.82 $ 32,184.00*
----------- ------------
TOTAL COMMON STOCKS $ 8,168.59 $ 37,700.50
=========== ===========
_____________________
*Non-Income Producing.
VALUE
COST 6-30-94
---- -------
OTHER SECURITIES
----------------
Money Market Fund
-----------------
Short-Term Money Market Fund
AIM Short-Term Investments Co. $ 89,279.11 $ 89,279.11
=========== ===========
Income Tax Status
-----------------
The Plan is a qualified plan under Section 401 of the
Internal Revenue Code and is exempt from federal income taxes
under Section 501.
NOTE C - REALIZED GAIN ON SECURITIES
The realized gain or loss from the sale of securities was as
follows:
1994 1993 1992
---------- ---------- ----------
Participating Employer
Securities:
Sales Price $ 3,000.00 $ 0 $ 0
Less Cost (Average Cost) 2,070.00 0 0
---------- --------- ----------
Net Realized Gain (Loss) $ 930.00 $ 0 $ 0
========== ========= ==========
Unaffiliated Issuers'
Securities:
Sales Price $ 0 $ 0 $ 0
Less Cost (Average Cost) 0 0 0
---------- --------- ----------
Net Realized Gain (Loss) $ 0 $ 0 $ 0
========== ========= ==========
NOTE D - UNIT VALUE
Net Asset
Quarter Ending Number of Units Valuation per Unit
-------------- --------------- ------------------
June 30, 1993 595.0900 $480.9561495
September 30, 1993 595.0900 520.6083181
December 31, 1993 595.0900 648.9774908
March 31, 1994 595.0900 509.3667344
June 30, 1994 595.0900 503.7472987
NOTE E - UNREALIZED APPRECIATION
The following reflects the increase (decrease) in unrealized
appreciation:
1994 1993 1992
----------- ----------- -----------
Unrealized
Appreciation
6-30-94/93/92 $196,792.58 $190,241.96 $138,174.58
Unrealized
Appreciation
7-1-93/92/91 190,241.96 138,174.58 148,875.08
----------- ----------- -----------
Change in
Unrealized
Appreciation
6-30-94/93/92 $ 6,550.62 $ 52,067.38 $<10,700.50>
=========== =========== ============
The unrealized appreciation or depreciation of securities
held for investment for financial statement reporting is
prepared in conformity with generally accepted accounting
principles which differ from the principles for income tax
reporting.
Generally accepted accounting principles measure unrealized
appreciation or depreciation as the difference between the
securities' market value at the Plan's year end and its
historical cost. The unrealized appreciation or depreciation
for income tax reporting is the difference between the
securities' market value at the plan year end and its current
value at the beginning of the plan year.
A participant's account is increased or decreased by the
unrealized appreciation or depreciation recognized under
generally accepted accounting principles.
NOTE F - CHANGES IN PLAN
No amendments were made to the Plan during 1994.
NOTE G - ADMINISTRATION OF PLAN ASSETS
The Plan's assets are held by the Trustee of the Plan.
The Trustee invests cash received from interest and dividend
income and makes distributions to the participants.
Certain administrative functions are performed by employees
of the Company with no compensation from the Plan.
Administrative expenses and Trustee fees are paid directly by
the Company.
<PAGE>
ADDITIONAL INFORMATION
<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN (SPECIAL ACCOUNT)
FORT WORTH, TEXAS
ADDITIONAL INFORMATION
JUNE 30, 1994
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
Description Current
Issuer of Investment Cost Value
------ ------------- ---- -------
*Tandy Corporation Common Stock $ 5,222.33 $172,483.00
---------- -----------
InterTAN Inc. Common Stock $ 7,215.77 $ 5,516.50
---------- -----------
Tandycrafts, Inc. Common Stock $ 952.82 $ 32,184.00
---------- -----------
AIM Short-Term Short-Term
Investments Co. Money Market
Fund - Fluc-
tuating rate
of interest $89,279.11 $ 89,279.11
---------- -----------
*Party-in-Interest to Plan.
