FORM 11-K
[ ] ANNUAL REPORT PURSUANT TO
SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the Fiscal Year Ended March 31, 1997
OR
[ X ] TRANSITION REPORT PURSUANT TO
SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the Transition Period from July 1, 1996 to March 31, 1997
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
MARCH 31, 1997
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<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 . . . . . . . . . . . . . . . . 14-15
SIGNATURE PAGE . . . . . . . . . . . . . . . . . . .. 16
INDEX TO EXHIBITS . . . . . . . . . . . . . . . . .. 17
CONSENT OF INDEPENDENT ACCOUNTANT . . . . . . . . .. 18
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<PAGE>
Curtis B Morrison, CPA
4009 Seminole Trail
Granbury, Texas 76048
Metro (817) 279-0105
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 March 31, 1997 and June 30, 1996, and the
related statement of income and changes in the plan equity for the nine months
ended March 31, 1997 and for years ended June 30, 1996 and 1995. 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 March 31, 1997 and June 30, 1996, and results of its changes therein for
the nine months ended March 31, 1997 and the years ended June 30, 1996 and 1995,
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
Fort Worth, Texas
June 16, 1997 -4-
<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN
FORT WORTH, TEXAS
STATEMENT OF FINANCIAL CONDITION
MARCH 31, 1997
AND JUNE 30, 1996
PLAN ASSETS
1997 1996
---- ----
Investment in Securities of
Participating Employer (Note B):
Common Stock (Cost $0 in 1997
and $814,753.87 in 1996) $ 0 $15,724,804.75
---------- --------------
Investments in Securities of
Unaffiliated Issuers (Note B):
Other Securities - Short Term
Money Market Fund(Cost $0 in
1997 and $220,794.49 in 1996) $ 0 $ 220,794.49
---------- ---------------
Accrued Receivables:
Interest $ 0 $ 865.92
Proceeds Due from Stock Trade 0 41,269.00
---------- ---------
$ 0 $ 42,134.92
---------- ---------------
Cash in Bank $ 0 $ 0
---------- ---------------
Plan Assets:
Tandy Employees Investment Plan
(Special Account)(Note F) $ 0 $ 367,071.61
----------- ---------------
$ 0 $ 16,354,805.77
=========== ===============
LIABILITIES AND PLAN EQUITY
Liabilities:
Due to Former Plan Participants $ 0 $ 262,131.54
Plan Equity:
Participants' Interest in Tandy
Employees Investment Plan 0 $ 15,725,602.62
Participants' Interest in Tandy
Employees Investment Plan (Special
Account) (Note F) 0 367,071.61
------------ ---------------
$ 0 $ 16,354,805.77
============ ===============
The accompanying notes are an integral part of these financial statements.
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<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN
FORT WORTH, TEXAS
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
FOR THE 9 MONTHS ENDED MARCH 31, 1997
AND THE YEARS ENDED JUNE 30, 1996 AND 1995
1997 1996 1995
Investment Income:
Interest-Other $ 3,646.31 $ 26,833.12 $ 38,374.39
Dividends-Employer 200,412.80 298,751.24 337,273.65
----------- ---------- ----------
$ 204,059.11 $ 325,584.36 $ 375,648.04
Less:Interest Expense 0 0 0
-------------- -------------- -------------
$ 204,059.11 $ 325,584.36 $ 375,648.04
------------- ------------ ------------
Realized Gain (Loss) on
Securities (Note C):
Employer Securities $ 1,551,162.86 $ 5,778,022.93 $ 4,434,164.41
Other Securities $ 0 $ 0 $ 0
--------------- -------------- --------------
$ 1,551,162.86 $ 5,778,022.93 $ 4,434,164.41
--------------- -------------- --------------
Increase (Decrease) in
Unrealized Appreciation
of Investments (Note D)$ - 711,390.83 $-7,124,951.95 $ 4,725,677.37
--------------- -------------- ---------------
Contributions(Note A) $ 0 $ 0 $ 0
--------------- -------------- ---------------
Other Additions:
Appreciation in
Value over Cost
Distributed in
Withdrawals $ 55,426.64 $ 164,028.29 $ 37,082.60
-------------- -------------- ---------------
TOTAL $ 1,099,257.78 $ -857,316.37 $ 9,572,572.42
Less:
Withdrawals of
Participants'Interest 1,895,055.07 6,549,009.77 5,438,921.28
------------ ------------ ------------
Net Increase (Decrease)
in Plan for the Years
Ending 3-31-97 and
6-30-96/95 $ 795,797.29 $ 7,406,326.14 $ 4,133,651.14
Plan Equity at Beginning
of Year 7-1-96/95/94 15,725,602.62 23,131,928.76 18,998,277.62
------------- ------------- -------------
SUB-TOTAL $14,929,805.33 $15,725,602.62 $ 23,131,928.76
Net Assets Transferred
to Tandy Fund(Note K) $14,929,805.33 $ 0 $ 0
-------------- -------------- ----------------
Plan Equity at End of
Year 3-31-97 and
6-30-96/95 $ 0 $15,725,602.62 $ 23,131,928.76
The accompanying notes are an integral part of these financial statements.
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TANDY EMPLOYEES INVESTMENT PLAN
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED MARCH 31, 1997
AND THE YEARS ENDED JUNE 30, 1996 AND 1995
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 daily. 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, except for amounts credited to the
account because of fraud or mistake of fact.
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<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTHS ENDED MARCH 31, 1997
AND THE YEARS ENDED JUNE 30, 1996 AND 1995
NOTE A - DESCRIPTION OF THE PLAN (continued)
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,
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.
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TANDY EMPLOYEES INVESTMENT PLAN
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTHS ENDED MARCH 31, 1997
AND THE YEARS ENDED JUNE 30, 1996 AND 1995
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 3-31-97
------ ---- -------
COMMON STOCK
------------
Industrial
- ----------
Tandy Corporation
Common Stock 0 $ 0 $ 0
============ ============
SCHEDULE OF INVESTMENTS IN SECURITIES OF
----------------------------------------
UNAFFILIATED ISSUERS
--------------------
MARKETABLE SECURITIES
---------------------
VALUE
COST 3-31-97
OTHER SECURITIES
----------------
Money Market Fund
- -----------------
Short-Term Money Market Fund $ 0 $ 0
=========== ============
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<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTHS ENDED MARCH 31, 1997
AND THE YEARS ENDED JUNE 30, 1996 AND 1995
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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:
1997 1996 1995
Participating Employer
Securities:
Sales Price $1,631,783.54 $6,048,830.26 $4,666,225.00
Less Cost(Average Cost) 80,620.68 270,807.33 232,060.59
--------- ---------- ----------
Net Realized Gain $1,551,162.86 $5,778,022.93 $4,434,164.41
============= ============= =============
Unaffiliated Issuers'
Securities:
Sales Price $ 0 $ 0 $ 0
Less Cost(Average Cost) 0 0 0
------------ ------------- -------------
Net Realized Gain $ 0 $ 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.
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<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTHS ENDED MARCH 31, 1997
AND THE YEARS ENDED JUNE 30, 1996 AND 1995
NOTE C - REALIZED GAIN ON SECURITIES (continued)
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:
1997 1996 1995
---- ---- ----
Unrealized
Appreciation
3-31-97 and
6-30-96/95 $14,198,660.05 $14,910,050.88 $22,035,002.83
Unrealized
Appreciation
7-1-96/95/94 14,910,050.88 22,035,002.83 17,309,325.46
------------- ------------- -------------
Change in
Unrealized
Appreciation
3-31-97 and
6-30-96/95 $ 711,390.83 $ 7,124,951.95 $ 4,725,677.37
============= ============== ==============
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.
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<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTHS ENDED MARCH 31, 1997
AND THE YEARS ENDED JUNE 30, 1996 AND 1995
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 A is
the report of examination for this Special Account.
OTE G - RELATED PARTY TRANSACTIONS
During 1997, 1996 and 1995 common stock of Tandy Corporation was sold to the
Tandy Employees Deferred Salary and Investment Plan (now the Tandy Fund) and
Tandy Corporation at its current market value on the transaction dates in the
amount of $1,631,783.54, $6,048,830.26, and $4,666,225.00, 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.
Effective October 1, 1995, the Plan's Administrative Committee appointed Putnam
Fiduciary Trust Company as the Plan's trustee and instructed Bank One Trust
Company, NA (the previous trustee) to continue processing certain transactions
until such conversion was complete. The conversion was subsequently completed on
June 13,1997.
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.
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<PAGE>
TANDY CORPORATION INVESTMENT PLAN
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTHS ENDED MARCH 31, 1997
AND THE YEARS ENDED JUNE 30, 1996 AND 1995
NOTE I - UNIT VALUE
Valuation
Quarter Ending Number of Units per Unit
-------------- --------------- --------
June 30, 1996 25,521.7301 $616.1652
September 30, 1996 25,255.4314 527.8743
December 31, 1996 25,194.350 3577.6367
March 31, 1997 22,584.108 4661.0757
NOTE J - CHANGES TO PLAN
None. See Note K below.
NOTE K - MERGING OF THE PLAN
Effective March 31, 1997, the assets of the Tandy Employees Investment Plan were
merged into the Tandy Fund, a defined contribution plan (individual account)
with multiple participant-directed investment options which are intended to
comply with Internal Revenue Code Section 404(c).
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<PAGE>
ADDITIONAL INFORMATION
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<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN
FORT WORTH, TEXAS
ADDITIONAL INFORMATION
YEAR ENDED MARCH 31, 1997
ITEM 27e - SCHEDULE OF NON-EXEMPT TRANSACTIONS
Identity
of Party Relationship Purchase Selling Lease
Involved to Plan Price Price Rental
- -------- ------- ----- ----- ------
Tandy 401(k) Plan $ 80,620.68 $1,631,783.54 $0
Fund Sponsored
by Tandy
Corporation
Current
Expenses Value of
Incurred Cost Asset on Gain or
with of Transaction Loss on
Transaction Asset Date Transaction
- ----------- ----- ---- -----------
$0 $ 80,620.68 $1,631,783.54 $1,551,162.86
-15-
<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.
Tandy Employees Investment Plan
By/s/ D. Johnson
__________________________
D. Johnson
Administrative Committee Member
By/s/ J. H. Bradley
__________________________
J. H. Bradley
Administrative Committee Member
Date September 10, 1997
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<PAGE>
Index to Exhibits
Exhibit Description Page
Number of Exhibit Number
- ------ ----------- ------
23 Consent of 18
Independent
Accountant
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<PAGE>
Curtis B Morrison, CPA
4009 Seminole Trail
Granbury, Texas 76048
Metro (817) 279-0105
EXHIBIT 23
CONSENT OF INDEPENDENT ACCOUNTANT
I consent to the incorporation of my report dated March 31, 1997, 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
Fort Worth, Texas
June 16, 1997
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<PAGE>
EXHIBIT A
TANDY EMPLOYEES INVESTMENT PLAN (SPECIAL ACCOUNT)
FORT WORTH, TEXAS
REPORT OF EXAMINATION
MARCH 31, 1997
<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
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<PAGE>
Curtis B Morrison, CPA
4009 Seminole Trail
Granbury, Texas 76048
Metro (817) 279-0105
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 March 31, 1997 and June 30,
1996, and the related statement of income and changes in the plan equity for the
nine months ended March 31, 1997 and for years ended June 30, 1996 and 1995.
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 March 31, 1997 and June 30, 1996, and results of its
changes therein for the nine months ended March 31, 1997 and the years ended
June 30, 1996 and 1995, 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. MORRISON, CPA
Fort Worth, Texas
June 16, 1997
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<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN (SPECIAL ACCOUNT)
FORT WORTH, TEXAS
STATEMENT OF FINANCIAL CONDITION
MARCH 31, 1997
AND JUNE 30, 1996
PLAN ASSETS
3/31/97 6/30/96
------- -------
Investment in Securities of
Participating Employer (Note B):
Common Stock (Cost $0 in
1997 and $5,222.33 in 1996) $ 0 $ 238,580.50
----------- ------------
Investments in Securities of
Unaffiliated Issuers (Note B):
Marketable Securities -
Common Stock (Cost $0 in
1997 and $8,168.59 in 1996) $ 0 $ 20,965.25
------------ ------------
Other Securities - Short Term
Money Market Fund(Cost $0 in
1997 and $107,072.64 in 1996) 0 107,072.64
$ 0 $ 128,037.89
------------ ------------
Accrued Receivables:
Interest $ 0 $ 453.22
$ 0 $ 367,071.61
LIABILITIES AND PLAN EQUITY
Liabilities $ 0 $ 0
Plan Equity:
Participant's Interest in Tandy
Employees Investment Plan
(Special Account) 0 367,071.61
$ 0 $ 367,071.61
The accompanying notes are an integral part of these financial statements.
-4-
<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN (SPECIAL ACCOUNT)
FORT WORTH, TEXAS
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
FOR THE 9 MONTHS ENDED MARCH 31, 1997
AND THE YEARS ENDED JUNE 30, 1996 AND 1995
1997 1996 1995
---- ---- ----
Investment Income:
Interest-Employer $ 0 $ 0 $ 0
Interest-Other 4,301.39 5,710.59 5,072.67
Dividends-Employer 3,021.60 3,827.36 3,323.76
-------- -------- --------
$ 7,322.99 $ 9,537.95 $ 8,396.43
Less: Interest Expense $ 0 $ 0 $ 0
----------- ----------- ----------
$ 7,322.99 $ 9,537.95 $ 8,396.43
Realized Gain (Loss) on
Securities (Note C):
Employer Securities $ 0 $ 0 $ 0
Other Securities 0 0 0
----------- ----------- -----------
$ 0 $ 0 $ 0
----------- ----------- -----------
Increase (Decrease) in
Unrealized Appreciation
of Investments (Note E) $ 7,027.75 $ -27,695.25 $ 77,057.50
----------- -- --------- ------------
Contributions (Note A $ 0 $ 0 $ 0
----------- ------------ ------------
Other Additions:
Appreciation in
Value over Cost
Distributed in
Withdrawals $ 0 $ 0 $ 0
---------- ------------- ------------
TOTAL $14,350.74 $ -18,157.30 $ 85,453.93
Less:
Withdrawals of
Participants' Interest 0 0 0
---------- ------------- ------------
Net Increase (Decrease)
in Plan for the Years
Ending 3-31-97 and
6-30-96/95 $ 14,350.74 $ -18,157.30 $ 85,453.93
Plan Equity at Beginning
of Year 7-1-96/95/94 367,071.61 385,228.91 299,774.98
SUB-TOTAL $381,422.35 $ 367,071.61 $ 385,228.91
Net Assets Transferred
to Tandy Fund (Note G) 381,422.35 0 0
Plan Equity at End of Year $ 0 $ 367,071.61 $ 385,228.91
The accompanying notes are an integral part of these financial statements.
-5-
<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN (SPECIAL ACCOUNT)
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE 9 MONTHS ENDED MARCH 31, 1997
AND THE YEARS ENDED JUNE 30, 1996 and 1995
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 daily. 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, 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
-6-
<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN (SPECIAL ACCOUNT)
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTHS ENDED MARCH 31, 1997
AND THE YEARS ENDED JUNE 30, 1996 AND 1995
NOTE A - DESCRIPTION OF THE PLAN (continued)
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 3-31-97
------ ---- -------
COMMON STOCK
------------
Industrial
Tandy Corporation
Common Stock 0 $ 0 $ 0
=========== ===========
-7-
<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN (SPECIAL ACCOUNT)
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTHS ENDED MARCH 31, 1997
AND THE YEARS ENDED JUNE 30, 1996 AND 1995
NOTE A - DESCRIPTION OF THE PLAN (continued)
SCHEDULE OF INVESTMENTS IN SECURITIES OF
----------------------------------------
UNAFFILIATED ISSUERS
--------------------
MARKETABLE SECURITIES
---------------------
NO. OF VALUE
SHARES COST 3-31-97
------ ---- -------
COMMON STOCK
------------
Industrial
InterTAN Inc.
Common Stock 0 $ 0 $ 0
Tandycrafts, Inc. 0 0 0
---------- ----------
TOTAL COMMON STOCKS $ 0 $ 0
========== ==========
VALUE
COST 3-31-97
OTHER SECURITIES
----------------
Money Market Fund
Short-Term Money Market Fund $ 0 $ 0
============ ============
-8-
<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN (SPECIAL ACCOUNT)
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTHS ENDED MARCH 31, 1997
AND THE YEARS ENDED JUNE 30, 1996 AND 1995
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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:
1997 1996 1995
----------- ----------- -------
Participating Employer
Securities:
Sales Price $ 0 $ 0 $ 0
Less Cost (Average Cost) 0 0 0
---------- ---------- ---------
Net Realized Gain (Loss) $ 0 $ 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, 1996 595.0900 $616.8338
September 30, 1996 595.0900 562.6882
December 31, 1996 595.0900 593.4689
March 31, 1997 595.0900 640.9490
-9-
<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN (SPECIAL ACCOUNT)
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTHS ENDED MARCH 31, 1997
AND THE YEARS ENDED JUNE 30, 1996 AND 1995
NOTE E - UNREALIZED APPRECIATION
The following reflects the increase (decrease) in unrealized appreciation:
1997 1996 1995
----------- ----------- --------
Unrealized
Appreciation
3-31-97 and
6-30-96/95 $253,182.58 $246,154.83 $273,850.08
Unrealized
Appreciation
7-1-96/95/94 246,154.83 273,850.08 196,792.58
----------- ----------- -----------
Change in
Unrealized
Appreciation
3-31-97 and
6-30-96/95 $ 7,027.75 $ -27,695.25 $ 77,057.50
=========== ============ ===========
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.
-10-
<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN (SPECIAL ACCOUNT)
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTHS ENDED MARCH 31, 1997
AND THE YEARS ENDED JUNE 30, 1996 AND 1995
NOTE F - CHANGES IN PLAN
None. See Note H below.
NOTE G - MERGING OF THE PLAN
Effective March 31, 1997, the assets of the Tandy Employees Investment Plan
(Special Account) were merged into the Tandy Fund, a defined contribution plan
(individual account) with multiple participant-directed investment options which
are intended to comply with Internal Revenue Code Section 404(c).
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.
Effective March 31, 1997, the Plan's Administrative Committee appointed Putnam
Fiduciary Trust Company as the Plan's trustee and instructed Bank One Trust
Company, NA (the previous trustee) to continue processing certain transactions
until such conversion was complete.The conversion was subsequently completed on
June 13,1997.
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.
-11-
<PAGE>
ADDITIONAL INFORMATION
-12-
<PAGE>
TANDY EMPLOYEES INVESTMENT PLAN (SPECIAL ACCOUNT)
FORT WORTH, TEXAS
ADDITIONAL INFORMATION
MARCH 31, 1997
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
Description Current
Issuer of Investment Cost Value
*Tandy Corporation Common Stock $ 5,222.33 $252,429.50
---------- -----------
InterTAN Inc. Common Stock $ 7,215.77 $ 4,012.00
---------- -----------
Tandycrafts, Inc. Common Stock $ 952.82 $ 10,132.00
---------- -----------
Money Market Fund Short-Term
Money Market
Fund - Fluc-
tuating rate
of interest $114,368.48 $114,368.48
*Party-in-Interest to Plan.
-13-
