SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
[X]ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1996
OR
[ ]TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-4682
A. Full title of the plan, if different from that of the
issuer named below:
THOMAS & BETTS CORPORATION
EMPLOYEES' INVESTMENT PLAN
B. Name of issuer of the securities held pursuant to the
plan and the address of its principal executive office:
Thomas & Betts Corporation
1555 Lynnfield Road
Memphis, Tennessee 38119
THOMAS & BETTS CORPORATION
EMPLOYEES' INVESTMENT PLAN
INDEX
Financial Statements and Exhibit Page No.
Financial Statements:
Statement of Financial Condition -
Combined Funds - December 31, 1996 and 1995. 3
Statement of Income and Changes in
Plan Equity - Combined Funds - Years
Ended December 31, 1996, 1995, and 1994. 5
Notes to Financial Statements 6
Schedules (1996 Information Only):
Schedule 1 25
Schedule 2 26
Independent Auditors' Report 27
Signatures 28
Exhibit:
Auditors' Consent 29
THOMAS & BETTS CORPORATION
EMPLOYEES' INVESTMENT PLAN
STATEMENT OF FINANCIAL CONDITION
COMBINED FUNDS
December 31 1996 1995
PLAN ASSETS
Investments at fair value:
Common stock of Thomas & Betts Corporation
(cost $6,720,066 and $5,136,945 in 1996
and 1995, respectively) $ 8,722,214 $ 6,047,315
VMMR Federal Portfolio (cost approximates
fair value) 26,480,113 25,190,737
Vanguard Short-Term Federal Bond Fund
(cost $1,607,919 and $1,378,626 in 1996
and 1995, respectively) 1,596,835 1,382,639
Vanguard Index 500 Portfolio (cost
$13,975,150 and $9,190,813 in 1996 and
1995, respectively) 18,302,565 11,674,769
Vanguard U.S. Growth Fund (cost $12,351,807
and $8,092,840 in 1996 and 1995,
respectively) 15,492,625 10,222,178
Vanguard Wellington Fund (cost $22,475,964
and $14,058,953 in 1996 and 1995,
respectively) 25,644,550 16,627,068
Intermediate U.S. Treasury Bond Fund (cost
$990,458 and $646,753 in 1996 and 1995,
respectively) 985,252 683,626
International Growth Portfolio (cost
$2,736,269 and $1,221,697 in 1996 and
1995, respectively) 2,908,313 1,283,694
Vanguard Windsor Fund (cost $528,857) 581,081 -
Vanguard Windsor II Fund (cost $3,492,544) 3,859,945 -
Vanguard Index Small Cap Portfolio
(cost $523,475) 565,128 -
Employee Loan Fund 3,512,970 2,737,765
----------- ----------
Total Investments at fair value 108,651,591 75,849,791
Investments at contract value:
Vanguard Investment Contract Trust (cost
$1,556,422) 1,556,422 -
----------- ----------
Total Investments 110,208,013 75,849,791
Employee loan payments receivable 129,127 101,748
Receivable from Thomas & Betts Corporation:
Employees' contributions 668,835 426,926
Employer's contributions 320,774 200,237
----------- ----------
Total Receivables 1,118,736 728,911
----------- ----------
TOTAL ASSETS $111,326,749 $76,578,702
=========== ==========
PLAN EQUITY
Plan equity - including net unrealized
appreciation (depreciation) of
investments $111,326,749 $76,578,702
============ ===========
See accompanying notes to financial statements.
THOMAS & BETTS CORPORATION
EMPLOYEES' INVESTMENT PLAN
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
COMBINED FUNDS
Years ended December 31 1996 1995 1994
Investment Income:
Dividends on Thomas & Betts
Corporation common stock $ 200,661 $ 203,116 $ 164,767
Interest and other dividends 5,433,239 3,265,070 2,257,827
----------- ---------- ----------
5,633,900 3,468,186 2,422,594
Net realized gain (loss) on sales
of investments 945,121 998,488 (5,846)
Unrealized appreciation (depreciation)
of investments 6,726,610 7,655,628 (94,267)
Contributions:
Employees 10,658,817 7,141,340 6,467,676
Employer 4,051,854 2,820,890 2,728,759
Assets received from plan mergers 19,981,613 - -
----------- ---------- ----------
34,692,284 9,962,230 9,196,435
Administrative expenses (83,488) (58,319) (54,185)
Withdrawals, distributions and
forfeitures (13,166,380) (8,004,761) (6,765,000)
----------- ---------- ----------
Income and changes in plan equity
for the year 34,748,047 14,021,452 4,699,731
Plan equity at beginning of year 76,578,702 62,557,250 57,857,519
----------- ---------- ----------
Plan equity at end of year $111,326,749 $76,578,702 $62,557,250
=========== ========== ==========
See accompanying notes to financial statements.
THOMAS & BETTS CORPORATION
EMPLOYEES' INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
1. The accompanying financial statements have been prepared on an accrual
basis. The Plan's investments are stated at fair value except for its
investment contract which is valued at contract 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.
The Corporation's stock is valued at its quoted market price. Employee
loans are valued at cost which approximates fair value. Security
transactions are recorded on the trade date, and dividend income is
recorded on the ex-dividend date.
The preparation of financial statements in conformity with generally
accepted accounting principles requires the Plan Administrator 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 income and
expenses during the reporting period. Actual results could differ from
those estimates.
The Vanguard Group has been designated by the Retirement Plans Committee
as the plan trustee.
2. On April 4, 1984, the Board of Directors of the Corporation adopted the
Employees' Investment Plan in which eligible employees may elect to
participate by authorizing a withholding of an amount equal to 1%, 2%,
3%, 4% or 5% of compensation as a basic contribution to the Plan. The
Corporation contributes 75% of the first 3% and 50% of the remaining 2%
of each participating employee's basic contribution.
Each employee who has authorized a basic contribution at the maximum rate
of 5% of compensation may authorize a "supplemental contribution" of 1%
to 10% of compensation. The Corporation does not make any matching
contributions with respect to the amount of supplemental contributions
made by the employees.
During 1996, four new funds, Vanguard Windsor Fund, Vanguard Windsor II
Fund, Vanguard Index Small Cap Portfolio and Vanguard Investment Contract
Trust, were added to the Employees' Investment Plan. Assets of the
plan are invested in the following funds.
(1) The Thomas & Betts Stock Fund's assets are invested in common stock
of Thomas & Betts Corporation.
(2) The Vanguard Money Market Reserves - Federal Portfolio invests in
short-term securities that are guaranteed or backed by the U.S.
Government and its agencies.
(3) The Vanguard Short-Term Federal Bond Fund invests in bonds issued
by the U.S. Government and agency obligations.
(4) The Vanguard Index 500 Portfolio invests in the common stock of
major corporations, with the view to achieve a return on investments
equal to the Standard & Poor's 500 index.
(5) The Vanguard World Fund - U.S. Growth Portfolio invests in
high-quality, established growth stocks of companies based in the
United States.
(6) The Vanguard Wellington Fund is a balanced fund that invests in
common stocks (with emphasis on "blue chip" stocks), corporate
bonds, U.S. Government securities and preferred stock.
(7) The Intermediate U.S. Treasury Bond Fund invests in either
corporate debt securities or securities issued by the U.S.
Government which mature in five to twelve years.
(8) The International Growth Portfolio invests in the stocks of
companies located outside the United States.
(9) The Vanguard Windsor Fund invests in common stocks with relatively
low price/earnings ratios and meaningful income yields. The fund
may also invest in preferred stocks, fixed-income securities,
convertible securities, and money-market instruments.
(10) The Vanguard Windsor II Fund invests in undervalued,
income-producing stocks, characterized by above-average income
yields and below-average price/earnings ratios relative to the stock
market.
(11) The Vanguard Index Small Cap Portfolio invests in the common stocks
of smaller companies, with the view to achieve a return on
investments equal to the Russell 2000 index.
(12) The Vanguard Investment Contract Trust is a tax-exempt collective
trust fund that invests in investment contracts issued by insurance
companies and commercial banks, and similar types of fixed principal
investments.
On January 1, 1990 the Corporation established a Loan Fund allowing
participants in the Employees' Investment Plan with vested account
balances of at least $2,000 to borrow directly from their savings.
Participants may borrow up to 50% of their vested account balance or a
maximum of $50,000 for a period of 1 to 5 years. The minimum loan amount
allowed is $1,000. The interest rate charged is set at the prime rate
plus 1% on the last day of the month in which the loan is approved. This
rate does not change for the life of the loan. Loan repayments, both
principal and interest, are deposited into the participants' investment
fund(s) based on the allocation designated at the time of repayment.
Each participating employee may direct basic and supplemental
contributions in any one or more of the investment funds set up under the
Plan, except for the Vanguard Windsor Fund, Vanguard Windsor II Fund,
Vanguard Index Small Cap Portfolio and the Vanguard Investment Contract
Trust. These funds existed in the Eagle Savings Plan. When Thomas &
Betts Corporation acquired Amerace Corporation, a subsidiary of Eagle
Corporation, the balances in these funds pertaining to Amerace employees
were transferred into the Thomas & Betts Corporation Employees'
Investment Plan.
However, as of the date of transfer into the Employees' Investment Plan
no contribution may be allocated to these funds. The funds will be
closed after existing contributions contained in these funds are
distributed to participants or transferred to the funds previously
existing in the Employees' Investment Plan. The Corporation's
contribution is allocated among the funds in the same proportion as the
employee's basic contribution. Each employee may change the amount and
allocation of his or her contribution or reallocate existing balances
among funds by notifying The Vanguard Group by phone on any business day.
Changes are generally effective on the following business day.
3. During 1996 the Corporation amended the Plan to provide for (i) the
participation in the Plan of eligible employees of E.K. Campbell Company;
(ii) the participation in the Plan of certain employees of Amerace and
certain of its subsidiaries; (iii) the merger of the Amerace Capital
Accumulation Plan with and into the Plan; (iv) the transfer of certain
assets and liabilities from the Eagle Savings Plan to the Plan; and
(v) credit for eligibility and vesting purposes for service completed
with Bowers. The amendments resulted in $19,981,613 of assets received
from Plan mergers during 1996.
The Plan was also amended for forfeitures with respect to any participant
who is not 100% vested when he/she separates from service. If a
participant's vested accrued benefit is not distributed to him/her in an
immediate lump sum distribution, the nonvested portion of his/her
Corporation contribution account shall be forfeited as follows: (i) The
nonvested portion of a participant's accrued benefit, for any participant
who separates from service on or after July 1, 1996, shall be forfeited
when he/she incurs a five-year period of separation of service. If the
participant is reemployed before the five-year period of separation ends,
he/she will continue to vest starting at the point where he/she left
employment; (ii) Any participant separated from service on or after
January 1, 1989 and before July 1, 1996 but reemployed on or after July
1, 1996 and before incurring a five-year period of separation of service
shall have his/her nonvested portion of his/her accrued benefit (adjusted
for earnings or losses) restored. If the participant was reemployed
before July 1, 1996 and before incurring a five-year period of separation
of service and the nonvested portion of his/her accrued benefit was
restored, any earnings attributed to such nonvested accrued benefit
shall also be restored. The forfeiture amendment did not have a material
effect on the net assets of the Plan.
4. The following table presents investments at December 31, 1996 and 1995.
<TABLE>
1996 1995
Number of Number of
shares/units shares/units
or principal Fair or principal Fair
Amount Value amount Value
Investments at fair
value as determined by
quoted market price:
<S> <C> <C> <C> <C>
Thomas & Betts
common stock 592,945 $ 8,722,214 81,997 $ 6,047,315
Vanguard Wellington
Fund 980,671 25,644,550 684,082 16,627,068
Vanguard Index 500
Portfolio 264,641 18,302,565 202,687 11,674,769
Vanguard U.S. Growth
Fund 652,596 15,492,625 502,318 10,222,178
International Growth
Portfolio 176,690 2,908,313 85,466 1,283,694
Vanguard Windsor Fund 35,026 581,081 - -
Vanguard Windsor II Fund 161,978 3,859,945 - -
Vanguard Index Small
Cap Portfolio 27,935 565,128 - -
Investments at contract value:
Vanguard Investment
Contract Trust 1,556,442 1,556,422 - -
Investments at estimated fair
value:
VMMR Federal Portfolio 26,480,113 26,480,113 25,190,737 25,190,737
Intermediate U.S.
Treasury Bond Fund 94,554 985,252 62,833 683,626
Vanguard Short-Term
Federal Bond Fund 157,946 1,596,835 134,892 1,382,639
Participant Loans 3,512,970 3,512,970 2,737,765 2,737,765
----------- ----------
Total investments $110,208,013 $75,849,791
=========== ==========
</TABLE>
During the years ended December 31, 1996, 1995 and 1994, the Plan's
investments (including investments bought and sold, as well as held,
during the year) appreciated (depreciated) in value by $7,671,731,
$8,654,116 and $(100,113), respectively, as follows:
1996 1995 1994
Thomas & Betts common stock $1,407,153 $ 622,697 $ 617,896
Vanguard Short-Term Federal Bond Fund (15,959) 79,672 (96,720)
Vanguard Index 500 Portfolio 2,526,307 2,620,388 (147,909)
Vanguard U.S. Growth Fund 1,771,567 2,113,843 147,795
Vanguard Wellington Fund 1,358,403 3,073,893 (565,510)
Intermediate U.S. Treasury Bond Fund (40,587) 50,163 (10,181)
International Growth Portfolio 158,886 93,460 (35,484)
Vanguard Windsor Fund 57,288 - -
Vanguard Windsor II Fund 396,676 - -
Vanguard Index Small Cap Portfolio 51,997 - -
--------- --------- --------
Net appreciation (depreciation)
In fair value $7,671,731 $8,654,116 $(100,113)
========== ========== =========
5. Investment programs of the Plan are participant-directed. Net assets
available for benefits at December 31, 1996 and 1995, and changes in net
assets available for benefits by investment fund for the years ended
December 31, 1996, 1995 and 1994 are as follows:
1996
NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND
<TABLE>
T&B VMMR Vanguard Vanguard Vanguard
Stock Federal Vanguard Federal Vanguard Vanguard Growth Index
Fund Portfolio Windsor Bond Windsor II Index 500 Fund Small Cap
<C> <C> <C> <C> <C> <C> <C> <C>
Investments at fair value $8,722,214 $26,480,113 $581,081 $1,596,835 $3,859,945 $18,302,565 $15,492,625 $565,128
Investments at contract value - - - - - - - -
Employee loan payments
receivable 10,334 45,895 - 2,206 8 22,477 17,026 -
Receivable from Thomas &
Betts Corporation:
Employees' Contributions 74,722 138,720 - 16,473 - 127,165 104,124 -
Employer's Contributions 37,064 71,462 - 8,227 - 58,228 47,610 -
---------- ----------- -------- ---------- ---------- ----------- ----------- --------
111,786 210,182 - 24,700 - 185,393 151,734 -
---------- ----------- -------- ---------- ---------- ----------- ----------- --------
Net assets available for
benefits $8,844,334 $26,736,190 $581,081 $1,623,741 $3,859,953 $18,510,435 $15,661,385 $565,128
========== =========== ======== ========== ========== =========== =========== ========
</TABLE>
1996
NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND (CONTINUED)
<TABLE>
Vanguard Intermediate Investment International
Wellington U.S. Treasury Contract Growth Employee
Fund Bond Trust Portfolio Loan Fund Total
<S> <C> <C> <C> <C> <C> <C>
Investments at fair value $25,644,550 $ 985,252 - $2,908,313 $3,512,970 $108,651,591
Investments at contract
value - - $1,556,422 - - 1,566,422
Employee loan payments
receivable 27,521 704 - 2,956 - 129,127
Receivable from Thomas &
Betts Corporation:
Employees' Contributions 163,942 9,707 - 33,982 - 668,835
Employer's Contributions 77,454 5,078 - 15,651 - 320,774
----------- ---------- ---------- ---------- ---------- ------------
241,396 14,785 - 49,633 - 989,609
----------- ---------- ---------- ---------- ---------- ------------
Net assets available for
benefits $25,913,467 $1,000,741 $1,556,422 $2,960,902 $3,512,970 $111,326,749
=========== ========== ========== ========== ========== ============
</TABLE>
1996
CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND
<TABLE>
T&B VMMR Vanguard Vanguard Vanguard
Stock Federal Vanguard Federal Vanguard Vanguard Growth Index
Fund Portfolio Windsor Bond Windsor II Index 500 Fund Small Cap
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment Income:
Interest & other dividends $ 200,661 $ 1,264,579 $ 57,119 $ 82,441 $ 275,744 $ 352,051 $ 1,077,753 $ 45,108
Net appreciation
(depreciation) in fair value
of investments 1,407,153 - 57,288 (15,959) 396,676 2,526,307 1,771,567 51,997
Contributions:
Employees 1,156,048 2,022,680 - 307,223 - 2,264,610 1,635,767 -
Employer 444,723 914,766 - 109,032 - 730,676 580,098 -
Assets received from plan
mergers 279,387 3,117,580 555,811 143,709 3,723,237 1,870,627 784,754 630,497
---------- ----------- -------- ---------- ---------- ----------- ----------- --------
Total addition 3,487,972 7,319,605 670,218 626,446 4,395,657 7,744,271 5,849,939 727,602
Administrative expenses (8,289) (33,644) (579) (1,905) (2,392) (8,686) (6,953) (733)
Withdrawals, distributions
and forfeitures (500,499) (4,075,277) (44,248) (257,210) (392,795) (1,635,577) (1,709,641) (96,212)
Transfers in (out), net (260,841) (1,896,300) (44,310) (147,199) (140,517) 620,089 1,213,158 (65,529)
Net increase 2,718,343 1,314,384 581,081 220,132 3,859,953 6,720,097 5,346,503 565,128
Net assets available for plan
benefits:
Beginning of year 6,125,991 25,421,806 - 1,403,609 - 11,790,338 10,314,882 -
---------- ----------- -------- ---------- ---------- ----------- ----------- --------
End of year $8,844,334 $26,736,190 $581,081 $1,623,741 $3,859,953 $18,510,435 $15,661,385 $565,128
========== =========== ======== ========== ========== =========== =========== ========
</TABLE>
1996
CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND (CONTINUED)
<TABLE>
Vanguard Intermediate Investment International
Wellington U.S. Treasury Contract Growth Employee
Fund Bond Trust Portfolio Loan Fund Total
<S> <C> <C> <C> <C> <C> <C>
Investment Income:
Interest & other
dividends $ 1,804,890 $ 45,291 $ 90,035 $ 108,280 $ 229,948 $ 5,633,900
Net appreciation
(depreciation) in fair
value investments 1,358,403 (40,587) - 158,886 - 7,671,731
Contributions:
Employees 2,546,595 255,542 - 470,352 - 10,658,817
Employer 1,007,320 71,808 - 193,431 - 4,051,854
Assets received from
plan mergers 6,431,281 231,792 1,818,410 394,528 - 19,981,613
----------- ---------- ---------- ---------- ---------- ------------
Total additions 13,148,489 563,846 1,908,445 1,325,477 229,948 47,997,915
Administrative expenses (16,032) (893) (1,292) (2,057) (33) (83,488)
Withdrawals, distributions
and forfeitures (3,495,636) (145,814) (305,338) (226,717) (281,416) (13,166,380)
Transfers in (out), net (508,339) (107,293) (45,393) 555,768 826,706 -
----------- ---------- ---------- ---------- ---------- ------------
Net increase 9,128,482 309,846 1,556,422 1,652,471 775,205 34,748,047
----------- ---------- ---------- ---------- ---------- ------------
Net assets available for
plan benefits:
Beginning of year 16,784,985 690,895 - 1,308,431 2,737,765 76,578,702
----------- ---------- ---------- ---------- ---------- ------------
End of year $25,913,467 $1,000,741 $1,556,422 $2,960,902 $3,512,970 $111,326,749
=========== ========== ========== ========== ========== ============
</TABLE>
1995
NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND
<TABLE>
T&B VMMR Vanguard Vanguard
Stock Federal Federal Vanguard Growth
Fund Portfolio Bond Index 500 Fund
<S> <C> <C> <C> <C> <C>
Investments at fair value $6,047,315 $25,190,737 $1,382,639 $11,674,769 $10,222,178
Employee loan payments
receivable 7,142 42,178 1,968 17,093 11,959
Receivable from Thomas &
Betts Corporation:
Employees' contributions 48,001 125,002 12,685 68,009 56,438
Employer's contributions 23,533 63,889 6,317 30,467 24,307
---------- ----------- ---------- ----------- -----------
71,534 188,891 19,002 98,476 80,745
---------- ----------- ---------- ----------- -----------
Net assets available for
benefits $6,125,991 $25,421,806 $1,403,609 $11,790,338 $10,314,882
========== =========== ========== =========== ===========
</TABLE>
1995
NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND (CONTINUED)
<TABLE>
Vanguard Intermediate International
Wellington U.S. Treasury Growth Employee
Fund Bond Portfolio Loan Fund Total
<S> <C> <C> <C> <C> <C>
Investments at fair value $16,627,068 $683,626 $1,283,694 $2,737,765 $75,849,791
Employee loan payments
receivable 19,664 268 1,476 ---- 101,748
Receivable from Thomas &
Betts Corporation:
Employees' contributions 95,800 4,719 16,272 ---- 426,926
Employer's contributions 42,453 2,282 6,989 ---- 200,237
----------- -------- ---------- ---------- -----------
138,253 7,001 23,261 ---- 627,163
----------- -------- ---------- ---------- -----------
Net assets available for
benefits $16,784,985 $690,895 $1,308,431 $2,737,765 $76,578,702
=========== ======== ========== ========== ===========
</TABLE>
1995
Changes In Net Assets Available For Benefits By Investment Fund
<TABLE>
T&B VMMR Vanguard Vanguard
Stock Federal Federal Vanguard Growth
Fund Portfolio Bond Index 500 Fund
<S> <C> <C> <C> <C> <C>
Investment Income:
Interest & other dividends $ 203,116 $ 1,463,539 $ 85,380 $ 259,632 $ 411,517
Net appreciation
(depreciation) in fair value
of investments 622,697 ----- 79,672 2,620,388 2,113,843
Contributions:
Employees 826,184 2,021,155 243,059 1,086,722 934,421
Employer 366,157 788,843 96,705 415,725 391,765
---------- ----------- ---------- ----------- -----------
Total additions 2,018,154 4,273,537 504,816 4,382,467 3,851,546
Administrative expenses (7,305) (24,545) (1,823) (6,375) (5,524)
Withdrawals, distributions
and forfeitures (588,646) (3,850,636) (272,021) (1,129,924) (410,261)
Transfers in (out), net (1,231,724) (830,574) (291,482) 444,855 804,728
---------- ----------- ---------- ----------- -----------
Net increase (decrease) 190,479 (432,218) (60,510) 3,691,023 4,240,489
---------- ----------- ---------- ----------- -----------
Net assets available for
plan benefits:
Beginning of year 5,935,512 25,854,024 1,464,119 8,099,315 6,074,393
---------- ----------- ---------- ----------- -----------
End of year $6,125,991 $25,421,806 $1,403,609 $11,790,338 $10,314,882
========== =========== ========== =========== ===========
</TABLE>
1995
CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND (CONTINUED)
<TABLE>
Vanguard Intermediate International
Wellington U.S. Treasury Growth Employee
Fund Bond Portfolio Loan Fund Total
<S> <C> <C> <C> <C> <C>
Investments Income:
Interest & other dividends $ 807,034 $ 28,881 $ 34,233 $ 174,854 $ 3,468,186
Net appreciation
(depreciation) in fair value
investments 3,073,893 50,163 93,460 ---- 8,654,116
Contributions:
Employees 1,660,955 90,134 278,710 ---- 7,141,340
Employer 647,779 30,119 83,797 ---- 2,820,890
----------- ---------- ---------- ---------- -----------
Total additions 6,189,661 199,297 490,200 174,854 22,084,532
Administrative expenses (11,066) (526) (1,148) (7) (58,319)
Withdrawals, distributions
and forfeitures (1,212,158) (33,694) (86,873) (420,548) (8,004,761)
Transfers in (out), net 226,099 207,613 120,305 550,180 ----
----------- ---------- ---------- ---------- -----------
Net increase (decrease) 5,192,536 372,690 522,484 304,479 14,021,452
----------- ---------- ---------- ---------- -----------
Net assets available for
plan benefits:
Beginning of year 11,592,449 318,205 785,947 2,433,286 62,557,250
----------- ---------- ---------- ---------- -----------
End of year $16,784,985 $ 690,895 $1,308,431 $2,737,765 $76,578,702
=========== ========== ========== ========== ===========
</TABLE>
1994
NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND
<TABLE>
T&B VMMR Vanguard Vanguard
Stock Federal Federal Vanguard Growth
Fund Portfolio Bond Index 500 Fund
<S> <C> <C> <C> <C> <C>
Investments at fair value $5,831,171 $25,523,561 $1,434,080 $7,976,642 $5,960,771
Employee loan payments
receivable 9,042 40,070 1,850 12,433 9,825
Receivable from Thomas &
Betts Corporation:
Employees' contributions 65,326 194,592 19,373 76,616 72,873
Employer's contributions 29,973 95,801 8,816 33,624 30,924
---------- ----------- ---------- ---------- ----------
95,299 290,393 28,189 110,240 103,797
---------- ----------- ---------- ---------- ----------
Net assets available for
benefits $5,935,512 $25,854,024 $1,464,119 $8,099,315 $6,074,393
========== =========== ========== ========== ==========
</TABLE>
1994
NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND (CONTINUED)
<TABLE>
Vanguard Intermediate International
Wellington U.S. Treasury Growth Employee
Fund Bond Portfolio Loan Fund Total
<S> <C> <C> <C> <C> <C>
Investments at fair value $11,391,468 $312,465 $ 765,900 $2,433,286 $61,629,344
Employee loan payments
receivable 17,198 312 1,121 ---- 91,851
Receivable from Thomas &
Betts Corporation:
Employees' contributions 128,304 3,821 13,589 ---- 574,494
Employer's contributions 55,479 1,607 5,337 ---- 261,561
----------- -------- ---------- ---------- -----------
183,783 5,428 18,926 ---- 836,055
----------- -------- ---------- ---------- -----------
Net assets available for
benefits $11,592,449 $318,205 $ 785,947 $2,433,286 $62,557,250
=========== ======== ========== ========== ===========
</TABLE>
1994
Changes In Net Assets Available For Benefits By Investment Fund
<TABLE>
T&B VMMR Vanguard Vanguard
Stock Federal Federal Vanguard Growth
Fund Portfolio Bond Index 500 Fund
<S> <C> <C> <C> <C> <C>
Investment Income:
Interest & other dividends $ 164,767 $ 882,486 $ 83,621 $ 241,692 $ 69,195
Net appreciation
(depreciation) in fair value
of investments 607,896 ----- (96,720) (147,909) 147,795
Contributions:
Employees 645,742 2,174,075 202,901 965,051 810,453
Employer 282,918 1,037,664 85,260 377,961 330,178
---------- ----------- ---------- ----------- -----------
Total additions 1,701,323 4,094,225 275,062 1,436,795 1,357,621
Administrative expenses (5,681) (24,143) (1,344) (6,017) (5,124)
Withdrawals, distributions
and forfeitures (308,248) (2,624,024) (108,964) (972,210) (722,775)
Transfers in (out), net 614,594 6,241,031 (221,424) 398,476 (296,984)
---------- ----------- ---------- ----------- -----------
Net increase (decrease) 2,001,988 7,687,089 (56,670) 857,044 332,738
---------- ----------- ---------- ----------- -----------
Net assets available for
plan benefits:
Beginning of year 3,933,524 18,166,935 1,520,789 7,242,271 5,741,655
---------- ----------- ---------- ----------- -----------
End of year $5,935,512 $25,854,024 $1,464,119 $ 8,099,315 $ 6,074,393
========== =========== ========== =========== ===========
</TABLE>
1994
CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS BY INVESTMENT FUND (CONTINUED)
<TABLE>
Vanguard International International
Wellington Met Life U.S. Treasury Growth Employee
Fund Fund Bond Portfolio Loan Fund
<S> <C> <C> <C> <C> <C>
Investments Income:
Interest & other dividends $ 499,208 $ 313,483 $ 7,543 $ 9,956 $ 150,643
Net appreciation
(depreciation) in fair value
investments (565,510) ----- (10,181) (35,484) -----
Contributions:
Employees 1,603,153 ----- 16,371 49,930 -----
Employer 589,207 ----- 6,313 19,258 -----
---------- ---------- ---------- ---------- -----------
Total additions 2,126,058 313,483 20,046 43,660 150,643
Administrative expenses (9,544) (2,057) (59) (209) (7)
Withdrawals, distributions
and forfeitures (1,418,961) (392,685) ----- (11,265) (205,868)
Transfers in (out), net 459,184 (8,466,746) 298,218 753,761 219,890
----------- ---------- ---------- ---------- -----------
Net increase (decrease) 1,156,737 (8,548,005) 318,205 785,947 164,658
----------- ---------- ---------- ---------- -----------
Net assets available for
plan benefits:
Beginning of year 10,435,712 8,548,005 ----- ----- 2,268,628
----------- ---------- ---------- ---------- -----------
End of year $11,592,449 $ ----- $ 318,205 $ 785,947 $ 2,433,286
=========== ========== ========== ========== ===========
</TABLE>
6. As of December 31, 1996, the number of participants in each investment
fund was as follows:
Participants
1667 Thomas and Betts Stock Fund
2267 Vanguard Money Market Reserves-Federal Portfolio
480 Vanguard Short-Term Federal Bond Fund
1879 Vanguard Index 500 Portfolio
1555 Vanguard World Fund - U.S. Growth Portfolio
2400 Vanguard Wellington Fund
1004 Employee Loan Fund
329 Intermediate U.S. Treasury Bond Fund
716 International Growth Portfolio
140 Vanguard Windsor Fund
344 Vanguard Windsor II Fund
159 Vanguard Index Small Cap Portfolio
211 Vanguard Investment Contract Trust
The total number of participants in the Plan was less than the total
participants shown above because many were participating in more than
one fund.
7. The Corporation's contributions vest at the end of each year starting
with the second year of credited service, at the rate of 25% each year.
A participant in the Plan whose employment terminates for any reason
before his or her death, attainment of age 60, or total and permanent
disability is entitled to receive the vested portion, plus earnings
thereon, of his or her Employer Contribution Account. The nonvested
portion of the Employer Contribution Account will be forfeited and
retained in the Plan to reduce future contributions to be made by the
Corporation to the Plan. Subject to an amendment adopted during 1996
(note 3), the nonvested portion of the employer's contribution may be
restored to a terminated participant if he/she is reemployed prior to a
five-year period of separation of service. A participant is entitled
to receive 100% of his or her own contributions plus earnings thereon.
Employees of FL Industries, Inc. hired prior to July 1, 1992 have a
100% nonforfeitable right to the amounts in their accounts attributable
to transferred contributions from the FL Industries, Inc. Investment
and Savings Plan and shall at all times have a 100% nonforfeitable
right to the amount in their Employer Contribution accounts.
The Board of Directors of the Corporation may terminate the Plan, in
whole or in part, or permanently discontinue contributions thereunder
for any reason at any time. In the case of such termination or
permanent discontinuance of contributions thereunder, the participants
become fully vested in their accounts.
8. The Internal Revenue Service has issued a determination letter to the
effect that the Plan is a qualified plan under Section 401(a) of the
Internal Revenue Code of 1986 and is exempt from income tax under
Section 501(c). The Plan has been amended since receiving the
determination letter and a new determination letter has been received
indicating that the amendments are in compliance with the applicable
requirements of the Internal Revenue Code.
9. Under the present Federal income tax laws and regulations, participants
and their beneficiaries are not taxed at the time contributions are made
by the Corporation under the Plan, although the Corporation will receive
an immediate income tax deduction in the amount of such contribution.
All earnings of the Trust Fund, realized and unrealized, are not taxable
to any participant or his beneficiaries except upon a distribution by the
Trust Fund.
If a participant makes a withdrawal, generally the entire amount
distributed to the withdrawing participant will be taxable to him as
ordinary income. If an employee's participation in the Plan terminates,
there are a number of distribution alternatives available depending upon
age and vested account balance. To the extent that a distribution
consists of the Corporation's securities, the portion of the distribution
representing contributions to the Plan will be taxable at the time of the
distribution as ordinary income while the portion of the distribution
representing any unrealized appreciation in the value of the
Corporation's securities will not be taxable until disposition of such
shares. The participant or his beneficiaries may be able to elect to
have the ordinary income portion of the distribution taxed at special
rates which in most cases will be lower than the applicable ordinary
income tax rates. If the participating employee has not participated in
the Plan for five or more years before the year in which his or her
participation terminates, the special election will not be available to
the participant or his or her beneficiaries, except in the case of
termination due to the participant's death.
Schedule 1
THOMAS & BETTS CORPORATION
EMPLOYEES' INVESTMENT PLAN
Schedule of Investment Assets
Year ended December 31, 1996
Identity of Issue Description Cost Fair value
Equity Securities
Thomas & Betts Corporation
common stock 592,945 shares $ 6,720,066 $ 8,722,214
Mutual Funds
Vanguard Wellington Fund 980,671 units 22,475,964 25,644,550
VMMR Federal Portfolio 26,480,113 units 26,480,113 26,480,113
Intermediate U.S. Treasury
Bond Fund 94,554 units 990,458 985,252
Vanguard Index 500 Portfolio 264,641 units 13,975,150 18,302,565
Short-Term Federal Bond Fund 157,946 units 1,607,919 1,596,835
Vanguard U.S. Growth Fund 652,596 units 12,351,807 15,492,625
International Growth Portfolio 176,690 units 2,736,269 2,908,313
Vanguard Windsor Fund 35,026 units 528,857 581,081
Vanguard Windsor II Fund 161,978 units 3,492,544 3,859,945
Vanguard Index Small
Cap Portfolio 27,935 units 523,475 565,128
Total mutual funds 29,032,150 85,162,556 96,416,407
Loan Fund
Participant loans Interest rate range
7.00% to 11.00% with
maturity date range
January 10, 1997 to
December 24, 2001 3,512,970 3,512,970
Guaranteed Investment
Contracts
Vanguard Investment Contract
Trust at contract value 1,556,422 units 1,556,422 1,556,422
Total investments $96,952,014 $110,208,013
See accompanying independent auditors' report.
Schedule 2
THOMAS & BETTS CORPORATION
EMPLOYEES' INVESTMENT PLAN
Reportable Transactions
Year ended December 31, 1996
<TABLE>
Total
Description of Number of Purchase Selling Gain/
Security Transactions Price/Cost Price (Loss)
<S> <C> <C> <C> <C>
Purchases:
Thomas & Betts stock 132 $ 4,729,476 $ - $ -
Vanguard Wellington Fund 147 14,733,897 - -
VMMR Federal Portfolio 235 16,203,660 - -
Vanguard Index 500
Portfolio 184 9,387,418 - -
Vanguard U.S. Growth Fund 185 8,337,759 - -
Vanguard Windsor II Fund 10 3,999,044 - -
----------- ----------- ----------
$57,391,254 $ - $ -
Sales:
Thomas & Betts stock 169 $ 3,146,803 $ 3,461,730 $ 314,927
Vanguard Wellington Fund 220 6,407,239 7,160,093 752,854
VMMR Federal Portfolio 233 14,902,913 14,902,913 -
Vanguard Index 500
Portfolio 211 4,605,219 5,285,954 680,735
Vanguard U.S. Growth Fund 201 4,079,093 4,838,878 759,785
Vanguard Windsor II Fund 85 506,499 535,773 29,274
----------- ----------- ----------
$33,647,766 $36,185,341 $2,537,575
=========== =========== ==========
</TABLE>
See accompanying independent auditors' report.
INDEPENDENT AUDITORS' REPORT
The Investment Plan Committee
Thomas & Betts Corporation
We have audited the financial statements of Thomas & Betts Corporation
Employees' Investment Plan as listed in the accompanying index. These
financial statements are the responsibility of the Corporation's management.
Our responsibility is to express an opinion on these financial statements
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards 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.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Thomas & Betts Corporation
Employees' Investment Plan at December 31, 1996, and 1995, and the results of
its operations and changes in plan equity for each of the years in the three-
year period ended December 31, 1996, in conformity with generally accepted
accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplementary information
included in Schedules 1 and 2 is presented for purposes of additional
analysis and complying with the Department of Labor 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. Such
supplementary information has been subjected to the auditing procedures
applied in the audit 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.
KPMG PEAT MARWICK LLP
Memphis, Tennessee
June 6, 1997
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act
of 1934, the trustees (or other persons who administer the employee benefit
plan) have duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
THOMAS & BETTS CORPORATION
EMPLOYEES' INVESTMENT PLAN
Date: June 25, 1997 By: /s/Fred R. Jones
Fred R. Jones
Vice President - Finance & Treasurer
Date: June 25, 1997 By: /s/Jerry Kronenberg
Jerry Kronenberg
Vice President - General Counsel
EXHIBIT 23
The Retirement Plans Committee
Thomas & Betts Corporation
We consent to incorporation by reference in the Registration Statement No.
33-56789 of Thomas & Betts Corporation on Form S-8 of our report dated June
6, 1997, relating to the statements of financial condition of Thomas & Betts
Corporation Employees' Investment Plan as of December 31, 1996, and 1995 and
the related statements of income and changes in plan equity for each of the
years in the three-year period ended December 31, 1996, which report appears
in the December 31, 1996, annual report on Form 11-K of Thomas & Betts
Corporation Employees' Investment Plan.
KPMG PEAT MARWICK LLP
Memphis, Tennessee
June 6, 1997
