SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 11-K
REPORT PURSUANT TO
SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the Calendar Year Ended December 31, 1996
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
(full title of Program)
TANDY CORPORATION
100 THROCKMORTON STREET, SUITE 1800
Fort Worth, Texas 76102
(Name of issuer and address of principal executive offices)
Index to Exhibits is on sequential page number 13
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
REPORT OF EXAMINATION
DECEMBER 31, 1996
C 0 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....................... 7-10
ADDITIONAL INFORMATION.............................. 11
SIGNATURE PAGE...................................... 12
INDEX TO EXHIBITS................................... 13
EXHIBIT 23 - CONSENT OF INDEPENDENT ACCOUNTANT...... 14
The Administrative Committee and Participants of
Tandy Employees Supplemental Stock Program
Fort Worth, Texas
Independent Auditors Report
I have audited the accompanying statement of financial condition of the Tandy
Employees Supplemental Stock Program as of December 31, 1996 and 1995, and the
related statement of income and changes in plan equity for the years ended
December 31, 1996, 1995, and 1994. These financial statements are the
responsibility of the Program'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 my audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. 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 position of the Tandy Employees Supplemental
Stock Program as of December 31, 1996 and 1995, and results of its operations
for the years ended December 31, 1996, 1995 and 1994 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 purposes of complying with the Department
of Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974 and is not a required part of the basic
financial statements. 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.
CURTIS B. MORRISON, CPA
Fort Worth, Texas
March 12, 1997
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
STATEMENT OF FINANCIAL CONDITION
DECEMBER 31, 1996 AND 1995
PLAN ASSETS
-----------
1996 1995
---- ----
Investment in Securities of
Participating Employer (Note B):
Common Stock $13,830,960 $10,752,484
Contributions Receivable:
Tandy Employees
Supplemental Stock Program 450,584 287,480
------- -------
TOTAL $14,281,544 $11,039,964
----------- -----------
LIABILITIES AND PLAN EQUITY
---------------------------
Liabilities $ 0 $ 0
Plan Equity:
Participants' Interest in Tandy
Employees Supplemental Stock
Program $14,281,544 $11,039,964
=========== ===========
The accompanying notes are an integral part of these financial statements.
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
FOR THE YEAR ENDED DECEMBER 31, 1996, 1995 AND 1994
1996 1995 1994
---- ---- ----
Investment Income: $ 0 $ 0 $ 0
Interest 0 0 0
Dividend $ 0 $ 0 $ 0
Realized Gain (Loss) on
Securities (Note C): $ 0 $ 0 $ 0
Increase (Decrease) in
Unrealized Appreciation
of Investments (Note D) $ 925,180 $-2,633,726 $ -276,487
----------- ----------- ---------
Contributions (Note A):
Participating Employees $ 1,792,457 $ 1,094,149 $ 1,290,195
Participating Employer 1,433,981 875,395 1,032,156
Other Contributions 238,989 177,299 168,288
------- ------- -------
$ 3,465,427 $ 2,146,843 $ 2,490,639
----------- ---------- ----------
Less:
Withdrawals of
Participants' Interests $ 1,149,027 $ 1,039,677 $ 1,122,249
----------- ---------- ----------
Net Increase (Decrease)
in Plan for the Year
ended 12-31-96/95/94 $ 3,241,580 $-1,526,560 $ 1,091,903
Add Plan Equity at
Beginning of Year
1-1/95/94/93 11,039,964 12,566,524 11,474,621
---------- ---------- ----------
Plan Equity at
End of Year
12-31-96/95/94 $14,281,544 $11,039,964 $12,566,524
=========== =========== ===========
The accompanying notes are an integral part of these financial statements.
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1996, 1995 AND 1994
NOTE A - DESCRIPTION OF THE PROGRAM
The following description of the Tandy Employees Supplemental Stock Program (the
"Program") provides only general information. Participants should refer to the
Program Prospectus for a more complete description of the Programs provisions.
General
- - -------
The purpose of the Program is to assist the employees of Tandy Corporation and
its participating affiliates and associates (collectively called "Company") in
building personal net worth and to encourage ownership in the Company by
providing a Program for regular investment in the Company's common stock after
an employee has reached a maximum salary deferral contribution limit under the
Tandy Employees Deferred Salary and Investment Plan.
The Program is subject to Title I of the Employee Retirement Income Security Act
of 1974 (ERISA) relating to the protection of employee benefit rights, but is
not subject to Title IV, relating to plan termination insurance coverage, and
such insurance will not be extended to participants in the Program in the
future.
Contributions
- - -------------
Through authorized payroll deduction a participant could contribute 5% of his or
her gross salary or wages to the Program after reaching a maximum salary
deferral contribution limit under the Tandy Employees Deferred Salary and
Investment Plan. Effective January 1, 1996 the percentage was changed from 1 to
8% of his or her gross salary or wages after reaching a maximum salary deferral
contribution limit under the Tandy Fund.
The Company makes contributions to the Program equal to 80% of the participant's
contribution.
Cash dividends are added to the participant's account as Other contributions
paid on the shares of common stock credited to a participant's account. These
Other contributions are not subject to matching contributions by the Company.
The participant's contributions and the Company matching contribution are a part
of the employee's current compensation, and, as such, are subject to all
applicable federal, state, and local income, federal insurance contributions act
and other taxes.
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1996, 1995 AND 1994
NOTE A - DESCRIPTION OF THE PROGRAM (continued)
The cash dividends allocated to a participant's account are taxable to the
participant for the calendar year allocated.
As promptly as practicable after the end of each calendar quarter the
participant's contribution, the Company contribution, and any other
contributions are used for the acquisition of the Company's common stock with
shares being credited to the participant's account on the basis of the number of
shares purchased at a price equal to the average of the closing prices of the
Company common stock as reported for the New York Stock Exchange Composite
Transactions for each trading day in the calendar month for which the
contributions are made.
The following is a schedule of Employee, Company, and Other contributions:
1996 1995 1994
---- ---- ----
Employees $1,792,457 $1,094,149 $1,290,195
---------- ---------- ----------
Company $1,433,981 $ 875,395 $1,032,156
---------- ---------- ----------
Other $ 238,989 $ 177,299 $ 168,288
---------- ---------- ----------
Participants' Accounts
- - ----------------------
Each participant is mailed a quarterly statement showing his or her
contributions to date, Company and other contributions to date, the number of
shares purchased and the average share price for shares purchased to date. Each
participant is also mailed a copy of the annual report of the Company, any
appendix to the prospectus, and the summary annual report.
Vesting
- - -------
The participants' accounts are fully vested at the end of each calendar quarter.
Payment of Benefits
- - -------------------
The distribution of the Company common stock to the participant is not a taxable
event. Cash paid in lieu of stock upon withdrawal will, to the extent that it
exceeds or is less than the cost basis of the Company common stock, be treated
as long or short term capital gain or loss, respectively.
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1996, 1995 AND 1994
NOTE A - DESCRIPTION OF THE PROGRAM (continued)
A participant will recognize gain or loss on subsequent disposition of his or
her common stock, measured by the difference between the amount realized and the
cost basis.
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Valuation of Securities
- - -----------------------
The Tandy Corporation common stock is valued at the closing price according to
the New York Stock Exchange Composite Transactions.
SCHEDULE OF INVESTMENTS IN SECURITIES
-------------------------------------
OF PARTICIPATING EMPLOYER
-------------------------
NO. OF VALUE
SHARES COST 12-31-96
------ ---- --------
COMMON STOCK
Tandy Corporation
Common Stock 314,340 $11,716,370 $13,830,960
----------- -----------
Contributions
- - -------------
The contributions are accrued as incurred.
Income Tax Status
The Program is not a qualified plan under Section 401 of the Internal Revenue
Code. All items of income and gains and losses are treated as received or
incurred directly by the participants for federal income tax purposes.
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1996, 1995 AND 1994
NOTE C - REALIZED GAIN ON SECURITIES None (No sale of securities was made during
the year).
NOTE D - UNREALIZED APPRECIATION
1996 1995 1994
---- ---- ----
Unrealized Appreciation
(Depreciation)
12-31-96/95/94 $ 2,114,590 $ 1,189,410 $3,823,136
Unrealized Appreciation
(Depreciation)
12-31-95/94/93 1,189,410 3,823,136 4,099,623
--------- --------- ---------
Net Increase (Decrease)
for Year ended
12-31-96/95/94 $ 925,180 $-2,633,726 $ -276,487
=========== =========== ==========
The unrealized appreciation or depreciation of securities held for investment
for financial statement reporting prepared in conformity with generally accepted
accounting principles differ from that for income tax reporting.
Generally accepted accounting principles measure unrealized appreciation or
depreciation as the difference between the securities, market value at the
Program'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.
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
ADDITIONAL INFORMATION
YEAR ENDED DECEMBER 31, 1996
ITEM 30a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
Description of Current
Issuer Investment Cost Value
- - ------ ---------- ---- -----
Tandy Corporation Common Stock $ 11,716,370 $ 13,830,960
------------ ------------
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Administrative Committee has duly caused this report to be signed by the
undersigned hereunto duly authorized.
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
by________________________
D. Christopher
Administrative Committee
Member
by________________________
D. Johnson
Administrative Committee
Member
by_________________________
J. H. Bradley
Administrative Committee
Member
Date_____________________
Index to Exhibits
Exhibit Description Page
Number of Exhibit Number
------ ---------- ------
23 Consent of 14
Independent
Accountant
EXHIBIT 23
CONSENT OF INDEPENDENT ACCOUNTANT
---------------------------------
I consent to the incorporation of my report dated December 31, 1996,
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 Supplemental Stock Program.
_______________________
CURTIS B. MORRISON, CPA
Fort Worth, Texas
March 12, 1997
