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, 1997
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
(full title of Program)
TANDY CORPORATION
1800 One Tandy Center
Fort Worth, Texas 76102
(Name of issuer and address of principal executive offices)
Index to Exhibits is on sequential page number 13)
<PAGE>
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
REPORT OF EXAMINATION
DECEMBER 31, 1997
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 . . . . . . . . . 7-10
ADDITIONAL INFORMATION . . . . . . . . . . . . . 11
SIGNATURE PAGE . . . . . . . . . . . . . . . . . 12
INDEX TO EXHIBITS . . . . . . . . . . . . . . . 13
EXHIBIT 23 - CONSENT OF INDEPENDENT ACCOUNTANT . 14
CURTIS B MORRISON, CPA
4009 Seminole Trail
Granbury, Texas 76048
(817)279-0105
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, 1997 and
1996, and the related statement of income and changes in plan equity for the
years ended December 31, 1997, 1996, and 1995. 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, 1997 and 1996, and results of its
operations for the years ended December 31, 1997, 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 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 27, 1998
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
STATEMENT OF FINANCIAL CONDITION
DECEMBER 31, 1997 AND 1996
PLAN ASSETS
1997 1996
------ -----
Investment in Securities of
Participating Employer (Note B):
Common Stock $25,654,848 $13,830,960
Contributions Receivable:
Tandy Employees
Supplemental Stock Program 0 450,584
----------- -----------
TOTAL $25,654,848 $14,281,544
LIABILITIES AND PLAN EQUITY
Liabilities $ 0 $ 0
----------- ------------
Plan Equity:
Participants' Interest in Tandy
Employees Supplemental Stock
Program $25,654,848 $14,281,544
=========== ===========
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, 1997, 1996 AND 1995
1997 1996 1995
------ ------ -----
Investment Income:
Interest $ 0 $ 0 $ 0
Dividend 0 0 0
------------ ----------- -----------
$ 0 $ 0 $ 0
------------ ----------- -----------
Realized Gain (Loss) on
Securities (Note C): $ 0 $ 0 $ 0
------------ ----------- -----------
0ncrease (Decrease) in
Unrealized Appreciation
of Investments (Note D) $10,520,572 $ 925,180 $(2,633,726)
----------- ----------- ---------
Contributions (Note A):
Participating Employees $ 1,479,074 $ 1,792,457 $ 1,094,149
Participating Employer 1,183,256 1,433,981 875,395
Other Contributions 260,607 238,989 177,299
----------- ----------- -----------
$ 2,922,937 $ 3,465,427 $ 2,146,843
----------- ----------- -----------
Less:
Withdrawals of
Participants'Interests $ 2,070,205 $ 1,149,027 $ 1,039,677
----------- ----------- -----------
Net Increase (Decrease)
in Plan for the Year
ended 12-31-97/96/95 $11,373,304 $ 3,241,580 $(1,526,560)
Add Plan Equity at
Beginning of Year
1-1/97/96/95 14,281,544 11,039,964 12,566,524
----------- ----------- -----------
Plan Equity at
End of Year
12-31-97/96/95 $25,654,848 $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
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1997, 1996 AND 1995
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 Program's 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 Fund.
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
Prior to January 1, 1996, 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 contribution
percentage could vary 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 contri-
bution 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. The
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1997, 1996 AND 1995
NOTE A - DESCRIPTION OF THE PROGRAM (continued)
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:
1997 1996 1995
------ ------ -----
Employees $1,479,074 $1,792,457 $1,094,149
---------- ---------- ----------
Company $1,183,256 $1,433,981 $ 875,395
---------- ---------- ----------
Other $ 260,607 $ 238,989 $ 177,299
---------- ---------- ----------
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
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1997, 1996 AND 1995
NOTE A - DESCRIPTION OF THE PROGRAM (continued)
basis of the Company common stock, be treated as long or short term capital gain
or loss, respectively.
A participant will recognize gain or loss on subsequent dispo-
sition 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 12-31-97
COMMON STOCK
Tandy Corporation
Common Stock 665,271 $13,019,686 $25,654,848
----------- -----------
During the 1997 year, the Plan received 51,315 shares in a one-for-one (1 for 1)
stock split.
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, 1997, 1996 AND 1995
NOTE C - REALIZED GAIN ON SECURITIES
None (No sale of securities was made during the year).
NOTE D - UNREALIZED APPRECIATION
1997 1996 1995
------ ------ -----
Unrealized Appreciation
(Depreciation)
12-31-97/96/95 $12,635,162 $2,114,590 $ 1,189,410
Unrealized Appreciation
(Depreciation)
12-31-96/95/94 2,114,590 1,189,410 3,823,136
----------- ---------- ----------
Net Increase (Decrease)
for Year ended
12-31-97/96/95 $10,520,572 $ 925,180 $(2,633,726)
=========== ========== ============
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, 1997
ITEM 30a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
Description of Current
Issuer Investment Cost Value
Tandy Corporation Common Stock $13,019,686 $25,654,848
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 /S/ D. Christopher
D. Christopher
Administrative Committee Member
by /S/ D. Johnson
D. Johnson
Administrative Committee Member
Date 3/27/98
Index to Exhibits
Exhibit Description Page
Number of Exhibit Number
23 Consent of 14
Experts and
Counsel
CURTIS B MORRISON, CPA
4009 Seminole Trail
Granbury, Texas 76048
(817)279-0105
EXHIBIT 23
CONSENT OF EXPERTS AND COUNSEL
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 27, 1998
