<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
REPORT PURSUANT TO
SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Period Ended March 31, 2000
TANDY FUND
(full title of Program)
RADIOSHACK CORPORATION
100 Throckmorton Street
Suite 1800
Fort Worth, Texas 76102
(Name of issuer and address of principal executive offices)
<PAGE> 2
RADIOSHACK CORPORATION
TANDY FUND
FINANCIAL STATEMENTS AND
SUPPLEMENTAL SCHEDULES
MARCH 31, 2000
<PAGE> 3
RADIOSHACK CORPORATION
TANDY FUND
INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
<TABLE>
<S> <C>
Report of Independent Accountants............................................................................. 1
Financial Statements:
Statement of Net Assets Available for Benefits - March 31, 2000 and 1999................................ 2
Statement of Changes in Net Assets Available for Benefits,
with Fund Information for the Year Ended March 31, 2000............................................... 3
Notes to Financial Statements............................................................................ 4-12
Supplemental Schedules:
Schedule of Assets Held for Investment Purposes at March 31, 2000................................. Schedule 1
</TABLE>
Schedules required by ERISA not included herein have been omitted, as there were
no transactions for the type required to be disclosed in such schedules.
<PAGE> 4
REPORT OF INDEPENDENT ACCOUNTANTS
To the Participants and Administrative Committee of
the Tandy Fund
In our opinion, the accompanying statements of net assets available for benefits
and the related statement of changes in net assets available for benefits,
present fairly, in all material respects, the net assets available for benefits
of the Tandy Fund (the "Plan") at March 31, 2000 and 1999, and the changes in
net assets available for benefits for the year ended March 31, 2000, in
conformity with accounting principles generally accepted in the United States.
These financial statements are the responsibility of the Plan's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these statements in accordance with
auditing standards generally accepted in the United States, which require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for the opinion expressed above.
Our audits were conducted 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 is the responsibility of the Plan's management.
The supplemental schedule has been subjected to the auditing procedures applied
in the audits of the basic financial statements and, in our opinion, is fairly
stated in all material respects in relation to the basic financial statements
taken as a whole.
PricewaterhouseCoopers LLP
September 25, 2000
1
<PAGE> 5
RADIOSHACK CORPORATION
TANDY FUND
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
MARCH 31,
---------------------------
2000 1999
------------ ------------
<S> <C> <C>
ASSETS
Investments (See Note 3)
Participant-directed $332,195,555 $230,515,466
Company-directed
RadioShack preferred stock
Allocated 248,820,959 145,379,609
Unallocated 72,693,008 69,134,704
RadioShack common stock 70,698,072 47,594,072
Common stocks 27,541 14,994
------------ ------------
Total investments 724,435,135 492,638,845
Contributions receivable
Employee 441,533 323,980
Employer 2,740,908 2,981,890
------------ ------------
Total assets 727,617,576 495,944,715
------------ ------------
LIABILITIES
Interest payable 409,260 637,186
Payable to participants (See Note 4) 174,921 --
Notes payable (See Note 2) 21,173,000 30,845,000
------------ ------------
Total liabilities 21,757,181 31,482,186
------------ ------------
Net assets available for benefits $705,860,395 $464,462,529
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
2
<PAGE> 6
RADIOSHACK CORPORATION
TANDY FUND
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
For the Year Ended March 31, 2000
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED COMPANY DIRECTED
INVESTMENTS INVESTMENTS TOTAL
-------------------- -------------------- --------------------
<S> <C> <C> <C>
Investment income
Dividends - participating employer $ 781,049 $ 5,705,406 $ 6,486,455
Dividends - other 9,735,940 -- 9,735,940
-------------------- -------------------- --------------------
10,516,989 5,705,406 16,222,395
-------------------- -------------------- --------------------
Net appreciation in fair value of securities
Employer securities 70,845,161 152,236,567 223,081,728
Other securities (see Note 3) 24,722,834 12,547 24,735,381
-------------------- -------------------- --------------------
95,567,995 152,249,114 247,817,109
-------------------- -------------------- --------------------
Contributions
Employee 22,040,597 -- 22,040,597
Employer -- 6,312,481 6,312,481
-------------------- -------------------- --------------------
22,040,597 6,312,481 28,353,078
-------------------- -------------------- --------------------
Other additions (deductions)
Loans and repayments (including interest), net (159,740) 159,740 --
Other (90,126) (13,593) (103,719)
-------------------- -------------------- --------------------
(249,866) 146,147 (103,719)
-------------------- -------------------- --------------------
Total 127,875,715 164,413,148 292,288,863
Less:
Withdrawals and termination payments 26,252,994 22,610,370 48,863,364
Interest expense -- 2,027,633 2,027,633
-------------------- -------------------- --------------------
Net increase (decrease) in plan assets 101,622,721 139,775,145 241,397,866
Net assets available for benefits - beginning of year 230,839,446 233,623,083 464,462,529
-------------------- -------------------- --------------------
Net assets available for benefits - end of year $ 332,462,167 $ 373,398,228 $ 705,860,395
==================== ==================== ====================
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE> 7
RADIOSHACK CORPORATION
TANDY FUND
NOTES TO FINANCIAL STATEMENTS
1. DESCRIPTION OF PLAN:
The following description of the Tandy Fund (the "Plan") provides only
general information. Participants should refer to the summary Plan
description, which also constitutes the Plan's prospectus, or the Plan
document for a more complete description of the Plan's provisions.
GENERAL
The Plan is a defined contribution plan covering employees of RadioShack
Corporation, its divisions and subsidiaries ("the Company" or
"RadioShack") who will have completed at least one year of service, of
not less than 1,000 hours in the following calendar quarter. The Tandy
Fund is an individual account plan with multiple, participant-directed
investment options which is intended to comply with the Employee
Retirement Income Security Act of 1974 ("ERISA") Section 404(c).
The Plan is subject to Titles I and II of ERISA relating to the
protection of employee benefit rights and amendments to the Internal
Revenue Code, respectively, but is not subject to Title IV, relating to
plan termination insurance coverage.
As of March 31, 2000 and 1999, there were 11,804 and 11,104 employees of
the Company participating in the Plan and 19,640 and 18,361 employees
eligible to participate, respectively.
PLAN TRUSTEE
The Company's Board of Directors has appointed Putnam Fiduciary Trust
Company ("Putnam") as the Plan's trustee.
METHODS OF OPERATION
The Tandy Fund is a defined-contribution plan consisting of a
Company-directed portion (which includes an ESOP) and a
participant-directed portion.
The ESOP portion of the Plan is comprised of three accounts: the
"Suspense" account, the "Preferred Stock" account and the "Profit
Sharing" account. The "Profit Sharing" account was included with the ESOP
portion of the Plan effective January 1, 1999.
The "Suspense" account had an original unallocated share account, which
consisted of 100,000 shares of RadioShack Corporation Series B TESOP
Convertible Preferred Stock (the "Preferred Stock"). The Preferred Stock
was purchased in July 1990 with funds obtained through a $100 million
borrowing. Each share of Preferred Stock is convertible into 87.072
shares of RadioShack common stock and its minimum resale value is
guaranteed by the Company to be $1,000 per share. This series of
Preferred Stock has certain liquidation preferences and may be redeemed
by the Company at specified premiums. The borrowing is discussed in Note
2.
The unallocated shares of Preferred Stock and their related debt are held
in the "Suspense" account. Funds are derived from Company contributions
and dividends paid on the Preferred Stock. These funds are used to pay
the debt which releases a pro rata portion of the Preferred Stock and the
Preferred Stock released is allocated to the individual "Preferred Stock"
accounts of the participants. The allocation to participants' accounts
occurs on the last day of each plan year.
4
<PAGE> 8
RADIOSHACK CORPORATION
TANDY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
1. DESCRIPTION OF PLAN, CONTINUED:
The "Preferred Stock" account represents the participants' interests in
Preferred Stock that have been allocated to the participants' individual
accounts from the "Suspense" account.
There were 55,842.66 and 51,642.33 shares of Preferred Stock held in the
individual "Preferred Stock" accounts of participants as of March 31,
2000 and 1999, respectively.
The "Profit Sharing" account represents discretionary matching
contributions made to the Plan by RadioShack Corporation and allocated to
the participants' individual accounts.
PARTICIPANT CONTRIBUTIONS
Participants are allowed to defer (in increments of 1%) a minimum of 1%
of gross salary and wages up to a maximum of 8%. Contributions per
participant are limited to certain annual maximums as set forth by the
Internal Revenue Code.
Participants are provided with the option to direct their contributions
in various investment options; each of which is described in more detail
in Note 3. Participants may elect to contribute portions of their total
contributions to the various investment options in increments of 5%.
Participants are not subject to current federal income taxation on their
deferred contributions to the Plan.
COMPANY CONTRIBUTIONS
Company contributions are made directly to the Tandy Fund through the
ESOP portion of the Plan. The Company is obligated to make semi-annual
contributions to the Plan to enable it to pay principal and interest on
the indebtedness directly associated with the Preferred Stock. Cash
dividends are paid on shares of Preferred Stock semi-annually on June 30
and December 31 at the rate of 7.5% per annum. Cash dividends paid on all
shares of Preferred Stock and additional cash contributed by the Company
to the Plan are used to make payments of principal and interest on the
debt that was created to purchase the Preferred Stock. As the debt is
reduced, a pro rata number of shares of Preferred Stock is released and
allocated to participants' "Preferred Stock" accounts on the last day of
each plan year. The allocation is based on the total number of shares to
be allocated less shares allocated in lieu of cash dividends, multiplied
by a fraction equal to the amount of a participants' deferred salary
contribution to the Plan over the total deferred salary contributions of
all participants in the Plan for the current Plan year.
As a result of using dividends to pay down the principal on the debt,
shares of Preferred Stock equal to the value of the dividend are released
and allocated to participants' accounts. The amount of dividends
allocated to a participant is an amount equal to the number of shares
released multiplied by a fraction, the numerator of which is the number
of a participant's shares owned on the allocation date, and the
denominator of which is the total shares owned by all participants.
RadioShack Corporation is eligible to make discretionary matching
contributions to the participants' "Profit Sharing" account at any time.
Discretionary "Profit Sharing" contributions of $35,150 and $29,212 were
made to the Plan during the years ended March 31, 2000 or 1999,
respectively.
5
<PAGE> 9
RADIOSHACK CORPORATION
TANDY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
1. DESCRIPTION OF PLAN, CONTINUED:
PARTICIPANTS' ACCOUNTS
Participants' ESOP accounts are valued as of the last day of each month.
Participants' investments in common stock and in the various other
investment options are valued daily. Each participant is mailed a
quarterly statement showing their contributions, Company contributions,
total contributions and the market value of their account. Each
participant is also mailed the following:
o a copy of the annual report of RadioShack Corporation,
o any RadioShack Stock Plan/Plan prospectus incorporated by reference
into the registration statements on Form S-8 (Nos. 33-51603,
333-27437 and 333-63659) or an appendix to the prospectus,
o any material amendment made to any revised summary plan description
booklet, which also constitutes the Plan's prospectus, and the
summary annual report.
VESTING
A participant, who was an employee on September 30, 1990, is fully vested
at all times in all shares allocated to his or her Stock account, along
with earnings thereon and forfeitures of terminated participants'
nonvested accounts. A participant who does not meet this requirement will
become fully vested in the Company's contributions upon the earlier to
occur of five years of service with the Company or three years of
participation in the Plan. Participants are immediately vested in their
deferred and voluntary contributions to the Plan plus actual earnings
thereon.
PAYMENT OF BENEFITS
Participants who withdraw from the Plan may receive the vested portion of
their accounts under one of four withdrawal methods, which are summarized
below:
(1) Single sum payment in cash
(2) Purchase of an annuity contract to provide regular monthly income
over a designated period of time, of not less than two years nor
more than fifteen years (or the participant's actual life
expectancy, if shorter)
(3) Equal monthly cash installments for a period of up to ten years (or
the participant's actual life expectancy, if shorter)
(4) Part cash and part securities
FORFEITED ACCOUNTS
Forfeited nonvested accounts of terminated participants are allocated
among the remaining participants' accounts. A total of $3,553,270 and
$1,138,554 were allocated to participants' accounts as a result of
forfeitures for the years ended March 31, 2000 and 1999, respectively.
LOANS TO PARTICIPANTS
A participant may borrow up to 50% of his or her vested account value in
the Plan not to exceed the lesser of: 1) $50,000 or 2) an amount that can
be fully repaid by payroll deduction payments that do not exceed 25% of
the participant's regular gross wages. The minimum loan amount is $500;
to be repaid through authorized payroll deductions. The term of a loan
may not be less than six months (or multiples of six months) and not more
than five years. The interest rate of the loan is fixed by
6
<PAGE> 10
RADIOSHACK CORPORATION
TANDY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
1. DESCRIPTION OF PLAN, CONTINUED:
LOANS TO PARTICIPANTS, CONTINUED:
the Administrative Committee and is based on the interest rate currently
charged on commercial loans. The weighted average interest rate charged
on participant loan balances was 9.63% and 9.27% for the years ended
March 31, 2000 and 1999, respectively. Interest received on participant
loans was $1,292,099 and $1,044,860 for the years ended March 31, 2000
and 1999, respectively. A portion, not to exceed 50%, of the
participant's dollar value interest in the Plan, is pledged as collateral
on outstanding participant loans.
PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the
right under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of ERISA. In the event of
Plan termination, participants will become 100% vested in their accounts.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
BASIS OF ACCOUNTING
The Plan's financial statements are prepared under the accrual method of
accounting.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
INVESTMENT VALUATION AND INCOME RECOGNITION
The Plan's investments are stated at fair value. Shares of registered
investment companies are valued at quoted market prices, which represent
the net asset value of shares held by the Plan at year-end. RadioShack
common stock is valued at its closing market price. RadioShack preferred
stock is valued on a monthly basis by an independent, third-party
appraiser. Participant loans are valued at cost, which approximates fair
value.
Purchases and sales of securities are recorded on a trade-date basis.
Dividends are recorded on the ex-dividend date. Net appreciation or
depreciation of investments as reported in the statement of changes in
net assets available for plan benefits is calculated based on a revalued
cost method basis as required by ERISA.
CONTRIBUTIONS
Contributions from participants are accrued in the period in which they
are deducted in accordance with salary deferral agreements, and as such,
become obligations of the Company and assets of the Plan.
7
<PAGE> 11
RADIOSHACK CORPORATION
TANDY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED:
NOTES PAYABLE
The "1990 Notes" were issued under an indenture dated June 30, 1990 in
denominations of $1,000 limited to $100,000,000 aggregate principal
amount that have a final maturity of June 30, 2000 and are guaranteed by
the Company. The 1990 Notes bear interest at 9.34% per annum payable
semi-annually on each December 30 and June 30 from December 30, 1990
through June 30, 2000.
On December 15, 1994, the Plan entered into an agreement with an
unrelated third party to refinance a portion of the 1990 Notes. Under
this agreement, the Plan has borrowed $16,693,000 at interest rates
ranging from 5.84% to 8.76%. These notes are also guaranteed by the
Company and mature on dates ranging from December 30, 2000 to December
30, 2002. Maturities of the Notes are as follows:
For the Plan's Fiscal Year:
<TABLE>
<S> <C>
4/1/00 - 3/31/01 $ 9,543,000
4/1/01 - 3/31/02 7,826,000
4/1/02 - 3/31/03 3,804,000
4/1/03 - 3/31/04 --
------------
$ 21,173,000
============
</TABLE>
The fair value of the Plan's total debt of $21,173,000 is approximately
$21,453,000 at March 31, 2000.
EXPENSES OF THE PLAN
At March 31, 2000, the trustee was responsible for both the management
and record keeping of the Plan's assets. Administrative expenses of the
Plan are generally paid directly to the trustee by the Company and thus
are not a component of the changes in net assets available for Plan
benefits.
CONCENTRATION OF PLAN ASSETS
The Tandy Fund has approximately 81% and 78% of its total assets
(including unallocated Preferred Stock) invested in securities of its
sponsor, RadioShack Corporation, at March 31, 2000 and 1999,
respectively.
RECLASSIFICATION
Certain March 31, 1999 balances have been reclassified to conform to
current year presentation.
3. INVESTMENTS:
The following is a summary description of the various
participant-directed investment options. Participants should refer to the
brochures and prospectuses for each of the respective mutual funds and
Company common stock for more complete information including risks
associated with investment options.
8
<PAGE> 12
RADIOSHACK CORPORATION
TANDY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
3. INVESTMENTS, CONTINUED:
RADIOSHACK CORPORATION COMMON STOCK
Funds are invested in common stock of RadioShack Corporation.
PUTNAM INCOME FUND
Funds are invested in shares of a registered investment company that
invests primarily in fixed-income securities such as debt securities,
including both government and corporate obligations, preferred stocks,
dividend-paying common stocks and may hold a portion of its assets in
cash or money market instruments. This fund may also invest up to 20% of
its assets in securities principally traded in foreign markets.
PUTNAM VOYAGER FUND
Funds are invested in shares of a registered investment company that
invests primarily in common stocks of companies (a significant portion of
which may be invested in securities of smaller and newer issuers). This
fund may also purchase convertible bonds, convertible preferred stocks,
warrants, preferred stocks, debt securities and may hold a portion of its
assets in cash or money market instruments. This fund may also invest up
to 20% of its assets in securities principally traded in foreign markets.
PUTNAM ASSET ALLOCATION FUND: GROWTH PORTFOLIO
Funds are invested in shares of a registered investment company that
invests primarily in equity and fixed income securities with a strategic
allocation which is more heavily weighted towards the equity class. The
equity class portion of the fund may invest in equity instruments of
larger companies as well as smaller and less well-known companies. The
fixed income portion of the fund will typically include a portfolio of
debt securities, including both U.S. and foreign government obligations
and corporate obligations. This portion of the fund may also invest in
money market instruments and lower-rated fixed income securities. This
fund may also invest up to 40% of its assets in securities principally
traded in foreign markets.
PUTNAM ASSET ALLOCATION FUND: BALANCED PORTFOLIO
Funds are invested in shares of a registered investment company that
invests primarily in equity and fixed income securities with a strategic
allocation which is slightly weighted towards the equity class. The
equity class portion of the fund may invest in equity instruments of
larger companies as well as smaller and less well-known companies. The
fixed income portion of the fund will typically include a portfolio of
debt securities, including both U.S. and foreign government obligations
and corporate obligations. This portion of the fund may also invest in
money market instruments and lower-rated fixed income securities. This
fund may also invest up to 40% of its assets in securities principally
traded in foreign markets.
PUTNAM ASSET ALLOCATION FUND: CONSERVATIVE PORTFOLIO
Funds are invested in shares of a registered investment company that
invests primarily in equity and fixed income securities with a strategic
allocation which is more heavily weighted towards the fixed income class.
The equity class portion of the fund may invest in equity instruments of
larger companies as well as smaller and less well-known companies. The
fixed income portion of the fund will typically include a portfolio of
debt securities, including both U.S. and foreign government obligations
and corporate obligations. This portion of the fund may also invest in
money market instruments and lower-rated fixed income securities. This
fund may also invest up to 30% of its assets in securities principally
traded in foreign markets.
9
<PAGE> 13
RADIOSHACK CORPORATION
TANDY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
3. INVESTMENTS, CONTINUED:
PUTNAM INTERNATIONAL GROWTH FUND
Funds are invested in shares of a registered investment company which
invests mainly in medium and large-sized companies. This fund diversifies
its investments among a number of different countries by investing at
least 65% of its total assets in at least three countries other than the
United States. This fund may also invest in companies located in less
developed and developing countries and it may use derivatives both for
hedging and non-hedging purposes. This fund may also purchase preferred
stocks, convertible securities and fixed income investments.
PUTNAM INVESTORS FUND
Funds are invested in shares of a registered investment company that
invests primarily in equity and fixed income securities of large growth
companies. This may include the use of derivatives both for hedging and
non-hedging purposes. This fund may also invest without limit in
securities of foreign issuers.
PUTNAM MONEY MARKET FUND
Funds are invested in shares of a registered investment company that
invests primarily in short-term, high-quality money market instruments
such as bank certificates of deposit, bankers' acceptances, prime
commercial paper, corporate obligations, municipal obligations, U.S.
Government securities and repurchase agreements. This fund may also
invest without limit in U.S. dollar denominated commercial paper of
foreign issuers and in bank certificates of deposit and bankers'
acceptances payable in U.S. dollars and issued by foreign banks or by
foreign branches of U.S. banks.
The following investments represent 5% or more of the Plan's net assets:
<TABLE>
<CAPTION>
SHARES FAIR VALUE
--------------------------- ---------------------------
2000 1999 2000 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
RadioShack Common Stock
Participant-Directed 3,822,577 1,908,278 $193,995,773 $121,771,978
Company-Directed * 1,393,065 745,842 70,698,072 47,594,072
Series B TESOP Convertible
Preferred Stock - Allocated * 55,843 51,642 248,820,959 145,379,609
Series B TESOP Convertible
Preferred Stock - Unallocated * 16,314 24,558 72,693,008 69,134,704
Putnam Voyager Fund 2,006,557 1,958,461 68,523,913 45,455,885
</TABLE>
* Company-directed investments
During fiscal 2000, the Plan's investments (including gains and losses on
investment bought and sold, as well as held during the year) appreciated
in value by $247,817,109 as follows:
<TABLE>
<S> <C>
Employer securities:
Common stock $ 98,827,992
Preferred stock 124,253,736
Other securities:
Mutual funds 24,722,834
Common stocks 12,547
-------------
$ 247,817,109
=============
</TABLE>
10
<PAGE> 14
RADIOSHACK CORPORATION
TANDY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
4. TAX STATUS OF THE PLAN:
The Plan has received a determination letter from the Internal Revenue
Service dated April 28, 1998. The Plan has subsequently been amended and
management will request a similar determination letter from the Internal
Revenue Service for the Plan. Management believes that the Plan is
qualified under Section 401(a) of the Internal Revenue Code and
applicable sections of ERISA and, therefore, the trust is exempt from
taxation under Section 501(a). Accordingly, employee contributions,
employer contributions, and earnings of the Plan are not taxable to
participants until distributed.
During fiscal 2000 the Plan discovered that Putnam failed to follow
certain administrative provisions of the Plan which resulted in technical
violations under Section 404(a)(1)(D) of ERISA. These technical
violations did not arise out of the violation of any of the basic
requirements of ERISA, or the Internal Revenue Code of 1986 as amended
(the "Code"), but arose out of the failure to follow voluntary optional
Plan provisions that are not required by ERISA or the Code. These
voluntary optional Plan provisions are: (i) aggregate loan repayment
amounts cannot exceed 25% of a participant's bi-weekly salary; (ii) no
more than two loans may be originated in a 12 month period and; (iii)
participants may not make salary deferrals to the Plan within 12 months
after an in-service withdrawal.
In order to rectify these incorrect loans, the Plan will be retroactively
amended to eliminate the loan limitation provisions during the applicable
period. The Plan will then apply to the Internal Revenue Service under
their "Walk-In-Closing" Agreement Program ("Walk-In Cap Program") for
approval of the recommended amendments. With respect to in-service
withdrawals and Plan salary deferrals within 12 months thereof, the Plan
will unwind these transactions and the Plan and its participants (who did
not make these erroneous deferrals) will be restored to where they would
have been had these erroneous deferrals never taken place. Also, the Plan
will distribute the erroneous deferrals to the affected participants and
issue them Forms 1099-R. At March 31, 2000 the Plan has accrued $174,921
with respect to these deferrals. The Plan will also apply to the Internal
Revenue Service under their Walk-In Cap Program for approval of these
remedial actions. All costs in connection with these remedial actions
will be borne by Putnam, not the Plan nor its participants.
5. RELATED PARTY TRANSACTIONS:
Certain Plan investments are shares of mutual funds managed by Putnam
Investments. Putnam Investments is the trustee as defined by the Plan
and, therefore, these transactions qualify as party-in-interest.
The Company redeemed $17,278,412 and $7,392,990 of Preferred Stock from
the Plan during 2000 and 1999, respectively.
6. ADMINISTRATION OF PLAN ASSETS:
The Plan is administered by an Administrative Committee comprising up to
three persons appointed by the Company's Board of Directors. 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> 15
RADIOSHACK CORPORATION
TANDY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
7. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500:
The following is a reconciliation of net assets available for Plan
benefits per the financial statements to the IRS Form 5500:
<TABLE>
<CAPTION>
March 31,
2000
-------------
<S> <C>
Net assets available for Plan benefits per the financial statements $ 705,860,395
Less: Benefit obligations currently payable (1,235,923)
-------------
Net assets available for Plan benefits per the Form 5500 $ 704,624,472
=============
</TABLE>
The following is a reconciliation of benefits paid to participants per
the financial statements to the IRS Form 5500:
<TABLE>
<CAPTION>
Year Ended
March 31, 2000
--------------
<S> <C>
Benefits paid to participants per the financial statements $ 48,863,364
Add: Benefit obligations payable at March 31, 2000 1,235,923
Less: Benefit obligations payable at March 31, 1999 (1,285,533)
--------------
Benefits paid to participants per the Form 5500 $ 48,813,754
==============
</TABLE>
Amounts currently payable to or for participants, dependents, and
beneficiaries are recorded on the IRS Form 5500 for benefit claims that
have been processed and approved for payment prior to March 31, 2000, but
not yet paid as of that date.
12
<PAGE> 16
SCHEDULE 1
RADIOSHACK CORPORATION
TANDY FUND
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
March 31, 2000
<TABLE>
<CAPTION>
IDENTITY OF ISSUE, BORROWER, DESCRIPTION OF INVESTMENT INCLUDING MATURITY DATE, SHARES
LESSOR OR SIMILAR PARTY RATE OF INTEREST, COLLATERAL, PAR OR MATURITY DATE OUTSTANDING COST CURRENT VALUE
---------------------------- -------------------------------------------------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
RadioShack Corporation * Common stock
Participant-directed 3,822,576.83 n/a $ 193,995,773
Company-directed 1,393,065.43 $ 13,641,793 70,698,072
RadioShack Corporation * Preferred Stock
Allocated 55,842.66 55,842,663 248,820,959
Unallocated 16,314.43 16,314,430 72,693,008
Tandycrafts, Inc. Common stock 2,384.00 953 6,854
InterTAN, Inc. Common stock 1,504.50 7,216 20,687
Putnam Investments * Income Fund 867,448.52 n/a 5,508,298
Putnam Investments * Voyager Fund 2,006,556.75 n/a 68,523,913
Putnam Investments * Asset Allocation-Growth Portfolio 1,047,744.55 n/a 15,988,582
Putnam Investments * Asset Allocation-Balanced Portfolio 1,370,265.36 n/a 18,114,908
Putnam Investments * Asset Allocation-Conservative Portfolio 397,207.48 n/a 4,182,595
Putnam Investments * International Growth Fund 58,318.47 n/a 1,838,781
Putnam Investments * Investors Fund 120,523.80 n/a 2,385,166
Putnam Investments * Money Market Fund n/a 7,109,062
Various participants * Participant loans receivable - terms of 6 months -
5 years, interest rates of 7.00% - 10.00% -- 14,548,477
-------------
$ 724,435,135
=============
</TABLE>
* - Party in interest
<PAGE> 17
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Administrative Committee has duly caused this annual report to be signed on its
behalf by the undersigned hereunto duly authorized.
Tandy Fund
By: /s/ J. H. BRADLEY
------------------------------------
J. H. Bradley
Administrative Committee Member
By: /s/ D. JOHNSON
------------------------------------
D. Johnson
Administrative Committee Member
By: /s/ FRANCESCA SPINELLI
------------------------------------
Francesca Spinelli
Administrative Committee Member
Date: September 26, 2000
<PAGE> 18
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
------- -----------
<S> <C>
23 Consent of Independent Accountants
</TABLE>
