<PAGE>
Page 1
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
Commission file Nos. 2-83724, 33-12324,
33-38267 and 33-55587
---------------------
For the Fiscal Year Ended December 31, 1997
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
(Full Title of the Plan)
TRANSAMERICA CORPORATION
600 Montgomery Street
San Francisco, California 94111
(Name of Issuer of the Securities Held
Pursuant to the Plan and the Address
of its Principal Executive Office)
<PAGE>
Page 2
Required information:
(a) Financial statements filed as a part of this report:
Report of Ernst & Young LLP, Independent Auditors
Statement of Net Assets Available for Plan Benefits
December 31, 1997 and 1996
Statement of Changes in Net Assets Available for Plan Benefits
- Years ended December 31, 1997, 1996 and 1995
Notes to Financial Statements - December 31, 1997
(b) Exhibit filed as a part of this report:
23.1 Consent of Ernst & Young LLP to the
incorporation by reference of their report
dated February 20, 1998 in Transamerica
Corporation's Registration Statements on
Form S-8 (File Nos. 2-83724, 33-12324,
33-38267 and 33-55587).
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Administration Committee of the Plan has duly caused this annual report to
be signed on its behalf by the undersigned thereunto duly authorized.
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
(Name of Plan)
Burton E. Broome
Vice President and Controller
Transamerica Corporation
For the Transamerica Corporation Employees Stock
Savings Plan Administration Committee
Date: March 31, 1998
<PAGE>
Page 3
FINANCIAL STATEMENTS
For
ANNUAL REPORT ON FORM 11-K
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
Year Ended December 31, 1997
<PAGE>
Page 4
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Board of Directors
Transamerica Corporation
San Francisco, California
We have audited the accompanying statements of net assets available for plan
benefits of Transamerica Corporation Employees Stock Savings Plan (the Plan) as
of December 31, 1997 and 1996, and the related statements of changes in net
assets available for plan benefits for each of the three years in the period
ended December 31, 1997. 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 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 net assets available for plan benefits of the Plan at
December 31, 1997 and 1996, and the changes in its net assets available for plan
benefits for each of the three years in the period ended December 31, 1997, in
conformity with generally accepted accounting principles.
Ernst & Young LLP
Los Angeles, California
February 20, 1998
<PAGE>
Page 5
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
December 31, 1997
(Part 1 of 2)
<CAPTION>
Transamerica Transamerica
Corporation Transamerica Transamerica Premier
Common Transamerica Fixed Transamerica Equity Cash
Stock Bond Income Equity Index Reserve
Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C>
Investments:
Transamerica Corporation
Common Stock--at fair value
(cost $124,038,350 for
2,671,156 shares) ....... $284,478,052
Transamerica Bond Fund--at
fair value (cost $5,353,136
for 429,736 shares) ..... $ 6,788,580
Transamerica Fixed Income
Fund--at cost, which
approximates fair value... $ 40,025,704
Transamerica Equity Fund--at
fair value (cost $32,130,495
for 2,658,247 shares)..... $ 64,364,928
Transamerica Equity Index
Fund--at fair value (cost
$6,479,547 for 481,144
shares)................... $ 10,968,966
Transamerica Premier Cash
Reserve Fund--at cost, which
approximates fair value... $ 6,382,160
Dodge & Cox Balanced Fund--at
fair value (cost $9,736,555
for 189,048 shares).......
T. Rowe Price Equity Income
Fund--at fair value (cost
$13,481,650 for 716,019
shares)..................
Loans to participants......
------------ ------------- ------------ ------------ ------------ ------------
Total investments ......... 284,478,052 6,788,580 40,025,704 64,364,928 10,968,966 6,382,160
Cash ......................... 2,292,229
Dividends receivable ......... 1,346,339
------------ ------------- ------------ ------------ ------------ ------------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS $288,116,620 $ 6,788,580 $40,025,704 $ 64,364,928 $ 10,968,966 $ 6,382,160
============ ============ =========== ============ ============ ============
APPROXIMATE NUMBER OF
PARTICIPATING EMPLOYEES 6,700 1,200 2,900 3,900 2,000 800
===== ===== ===== ===== ===== ===
<FN>
See notes to financial statements
</FN>
</TABLE>
<PAGE>
Page 6
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
December 31, 1997
(Part 2 of 2)
<CAPTION>
T.Rowe
Dodge Price
& Cox Equity
Balanced Income Participant
Fund Fund Loans Total
<S> <C> <C> <C> <C>
Investments:
Transamerica Corporation
Common Stock--at fair value
(cost $124,038,350 for
2,671,156 shares)........... $284,478,052
Transamerica Bond Fund--at
fair value (cost $5,353,136
for 429,736 shares).......... 6,788,580
Transamerica Fixed Income
Fund--at cost, which
approximates fair value...... 40,025,704
Transamerica Equity Fund--at
fair value (cost $32,130,495
for 2,658,247 shares)....... 64,364,928
Transamerica Equity Index
Fund--at fair value (cost
$6,479,547 for 481,144
shares).................... 10,968,966
Transamerica Premier Cash
Reserve Fund--at cost, which
approximates fair value..... 6,382,160
Dodge & Cox Balanced Fund--at
fair value (cost $9,736,555
for 189,048 shares) ........ $ 12,624,626 12,624,626
T. Rowe Price Equity Income
Fund--at fair value (cost
$13,481,650 for 716,019
shares) .................... $18,666,621 18,666,621
Loans to participants ........ $ 11,594,351 11,594,351
------------ ----------- ------------ ------------
Total investments ............ 12,624,626 18,666,621 11,594,351 455,893,988
Cash............................. 2,292,229
Dividends receivable ............ 1,346,339
------------ ----------- ------------ ------------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS $ 12,624,626 $18,666,621 $ 11,594,351 $459,532,556
============ =========== ============ ============
APPROXIMATE NUMBER OF
PARTICIPATING EMPLOYEES 2,000 2,400 1,500
===== ===== =====
<FN>
See notes to financial statements
</FN>
</TABLE>
<PAGE>
Page 7
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
December 31, 1996
(Part 1 of 2)
<CAPTION>
Transamerica Transamerica
Corporation Transamerica Transamerica Premier
Common Transamerica Fixed Transamerica Equity Cash
Stock Bond Income Equity Index Reserve
Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C>
Investments:
Transamerica Corporation
Common Stock--at fair value
(cost $127,499,236 for
3,010,875 shares) ........ $237,859,122
Transamerica Bond
Fund--at fair value
(cost $4,813,130
for 397,169 shares) ........ $ 5,620,882
Transamerica Fixed Income
Fund--at cost, which
approximates fair value..... $45,730,944
Transamerica Equity Fund--at
fair value (cost $22,461,318
for 2,226,803 shares)....... $36,837,936
Transamerica Equity Index
Fund--at fair value (cost
$4,924,707 for 407,652
shares)..................... $ 6,984,976
Transamerica Premier Cash
Reserve Fund--at cost, which
approximates fair value..... $ 4,486,994
Dodge & Cox Balanced Fund--at
fair value (cost $7,797,914
for 159,303 shares)
T. Rowe Price Equity Income
Fund--at fair value (cost
$10,672,738 for 599,043
shares..................
Loans to participants......
------------ ----------- ----------- ------------ ----------- ------------
Total investments ....... 237,859,122 5,620,882 45,730,944 36,837,936 6,984,976 4,486,994
Cash........................ 858,015
Dividends receivable ....... 1,505,277
------------ ----------- ----------- ------------ ----------- ------------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS $240,222,414 $ 5,620,882 $45,730,944 $ 36,837,936 $ 6,984,976 $ 4,486,994
============ =========== =========== ============ =========== ============
APPROXIMATE NUMBER OF
PARTICIPATING EMPLOYEES 7,000 1,300 3,300 3,500 1,700 900
===== ===== ===== ===== ===== ===
<FN>
See notes to financial statements
</FN>
</TABLE>
<PAGE>
Page 8
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
December 31, 1996
(Part 2 of 2)
<CAPTION>
T.Rowe
Dodge Price
& Cox Equity
Balanced Income Participant
Fund Fund Loans Total
<S> <C> <C> <C> <C>
Investments:
Transamerica Corporation
Common Stock--at fair value
(cost $127,499,236 for
3,010,875 shares)............ $237,859,122
Transamerica Bond Fund--at
fair value (cost $4,813,130
for 397,169 shares)........... 5,620,882
Transamerica Fixed Income
Fund--at cost, which
approximates fair value....... 45,730,944
Transamerica Equity Fund--at
fair value (cost $22,461,318
for 2,226,803 shares)......... 36,837,936
Transamerica Equity Index
Fund--at fair value (cost
$4,924,707 for 407,652
shares)....................... 6,984,976
Transamerica Premier Cash
Reserve Fund--at cost, which
approximates fair value....... 4,486,994
Dodge & Cox Balanced Fund--at
fair value (cost $7,797,914
for 159,303 shares)........... $ 9,529,502 9,529,502
T. Rowe Price Equity Income
Fund--at fair value (cost
$10,672,738 for 599,043
shares) ...................... $ 13,502,435 13,502,435
Loans to participants ........... $ 10,393,794 10,393,794
------------ ------------ ------------ ------------
Total investments ............... 9,529,502 13,502,435 10,393,794 370,946,585
Cash................................ 858,015
Dividends receivable ............... 1,505,277
------------ ------------ ------------ ------------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS $ 9,529,502 $ 13,502,435 $ 10,393,794 $373,309,877
============ ============ ============ ============
APPROXIMATE NUMBER OF
PARTICIPATING EMPLOYEES 2,000 2,400 1,600
===== ===== =====
<FN>
See notes to financial statements
</FN>
</TABLE>
<PAGE>
Page 9
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
Year Ended December 31, 1997
(Part 1 of 2)
<CAPTION>
Transamerica Transamerica
Corporation Transamerica Transamerica Premier
Common Transamerica Fixed Transamerica Equity Cash
Stock Bond Income Equity Index Reserve
Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS
Net investment income:
Interest........... $ 102,535 $ 2,904,243 $ 294,734
Dividend........... 5,584,060
------------- ------------ -------------
Net investment income ... 5,686,595 2,904,243 294,734
Net realized investment gain
and change in net unrealized
appreciation of investments.. 78,430,497 $ 627,692 $ 17,857,815 $ 2,429,150
Contributions
Participants............... 3,503,041 566,340 1,339,561 5,226,721 1,519,012 872,708
Loan repayments............ 1,493,445 113,743 662,469 1,348,247 253,585 137,620
Employer (reduced by
forfeitures of $201,672).. 8,107,187
Interfund transfers......... (13,113,058) 316,938 (3,069,834) 10,085,860 1,020,707 2,531,524
Loan advances............... (2,550,674) (146,591) (830,039) (1,479,063) (313,290) (167,360)
-------------- ------------ ------------ ------------ ------------ ------------
Total additions........ 81,557,033 1,478,122 1,006,400 33,039,580 4,909,164 3,669,226
DEDUCTIONS
Distributions to participants:
Securities at fair value ... 33,662,827 310,424 5,512,588 925,174
Cash ....................... 6,711,640 1,774,060
-------------- ------------ ------------ ------------ ------------ -------------
Total Deductions........ 33,662,827 310,424 6,711,640 5,512,588 925,174 1,774,060
-------------- ------------ ------------ ------------ ------------ -------------
Net additions/(deductions) ... 47,894,206 1,167,698 (5,705,240) 27,526,992 3,983,990 1,895,166
Net assets available for plan
benefits at December 31, 1996 240,222,414 5,620,882 45,730,944 36,837,936 6,984,976 4,486,994
-------------- ------------ ------------ ------------ ------------ --------------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS AT
DECEMBER 31, 1997 ....... $ 288,116,620 $ 6,788,580 $ 40,025,704 $ 64,364,928 $ 10,968,966 $ 6,382,160
============== ============= ============ ============= ============= =============
<FN>
See notes to financial statements
</FN>
</TABLE>
<PAGE>
Page 10
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
Year Ended December 31, 1997
(Part 2 of 2)
<CAPTION>
T.Rowe
Dodge Price
& Cox Equity
Balanced Income Participant
Fund Fund Loans Total
<S> <C> <C> <C> <C>
ADDITIONS
Net investment income:
Interest....................... $ 901,583 $ 4,203,095
Dividend....................... $ 940,749 $ 1,804,013 8,328,822
------------- ------------- ------------- -------------
Net investment income........ 940,749 1,804,013 901,583 12,531,917
Net realized investment gain
and change in net unrealized
appreciation of investments ... 1,156,483 2,355,274 102,856,911
Contributions:
Participants................... 1,490,489 1,837,758 16,355,630
Loan repayments................ 281,426 477,575 (4,768,110)
Employer (reduced by
forfeitures of $201,672)..... 8,107,187
Interfund transfers.............. 763,070 1,464,793
Loan advances.................... (325,815) (529,064) 6,341,896
------------- ------------- ------------- -------------
Total additions.............. 4,306,402 7,410,349 2,475,369 139,851,645
DEDUCTIONS
Distributions to participants:
Securities at fair value ...... 1,211,278 2,246,163 43,868,454
Cash........................... 1,274,812 9,760,512
------------- ------------- ------------- -------------
Total Deductions............. 1,211,278 2,246,163 1,274,812 53,628,966
------------- ------------- ------------- -------------
Net additions/(deductions) ...... 3,095,124 5,164,186 1,200,557 86,222,679
Net assets available for plan
benefits at December 31, 1996 9,529,502 13,502,435 10,393,794 373,309,877
------------- ------------- ------------- -------------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS AT
DECEMBER 31, 1997 ......... $ 12,624,626 $ 18,666,621 $ 11,594,351 $ 459,532,556
============= ============= ============= =============
<FN>
See notes to financial statements
</FN>
</TABLE>
<PAGE>
Page 11
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
Year Ended December 31, 1996
(Part 1 of 2)
<CAPTION>
Transamerica
Corporation John Transamerica
Transamerica Transamerica Transamerica Hancock Premier
Common Transamerica Fixed Transamerica Equity Cash Cash
Stock Bond Income Equity Index Reserve Reserve
Fund Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS
Net investment income:
Interest .................. $ 112,978 $ 3,129,336 $ 148,801 $ 16,194
Dividend .................. 6,067,765
------------- ----------- --------- ----------
Net investment income .... 6,180,743 3,129,336 148,801 16,194
Net realized investment gain
and change in net unrealized
appreciation of investments... 19,277,864 $ 160,366 $ 7,704,638 $1,069,229
Contributions:
Participants............... 4,163,875 663,775 1,672,291 4,033,844 987,603 281,951 26,486
Loan repayments............... 1,365,567 120,734 671,760 885,340 160,538 68,190 13,708
Employer (reduced by for-
feitures of $324,244) ...... 8,504,613
Defaulted loans...............
Interfund transfers............ (6,906,438) 313,611 (1,551,915) 3,217,194 1,166,937 (2,854,188) 4,450,966
Loan advances.................. (2,333,277) (235,212) (1,355,182) (951,122) (266,513) (109,261) (10,003)
------------ ---------- ----------- ----------- ---------- ---------- -----------
Total additions ............. 30,252,947 1,023,274 2,566,290 14,889,894 3,117,794 (2,464,507) 4,497,351
DEDUCTIONS
Distributions to participants:
Securities, at fair value ..... 16,110,620 184,830 1,933,597 372,270
Cash........................... 98,754 5,337,785 792,411 10,357
------------ ---------- ----------- ----------- ---------- ---------- -----------
Total deductions ............. 16,209,374 184,830 5,337,785 1,933,597 372,270 792,411 10,357
------------ ---------- ----------- ----------- ---------- ---------- -----------
Net additions/(deductions) ..... 14,043,573 838,444 (2,771,495) 12,956,297 2,745,524 (3,256,918) 4,486,994
Net assets available for plan
benefits at December 31, 1995.. 226,178,841 4,782,438 48,502,439 23,881,639 4,239,452 3,256,918
------------ ---------- ----------- ----------- ---------- ---------- -----------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS AT
DECEMBER 31, 1996 ............. $ 240,222,414 $ 5,620,882 $45,730,944 $36,837,936 $6,984,976 $ $ 4,486,994
============= =========== =========== =========== ========== ========== ===========
<FN>
See notes to financial statements
</FN>
</TABLE>
<PAGE>
Page 12
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
Year Ended December 31, 1996
(Part 2 of 2)
<CAPTION>
T.Rowe
Dodge Price
& Cox Equity
Balanced Income Participant
Fund Fund Loans Total
<S> <C> <C> <C> <C>
ADDITIONS
Net investment income:
Interest................. $ 747,490 $ 4,154,799
Dividend................. $ 312,471 $ 385,916 6,766,152
----------- ----------- ----------- ------------
Net investment income ...... 312,471 385,916 747,490 10,920,951
Net realized investment gain
and change in net unrealized
appreciation of investments ... 874,499 1,602,535 30,689,131
Contributions:
Participants................... 1,210,012 1,483,319 14,523,156
Loan repayments................ 218,638 309,833 (3,814,308)
Employer (reduced by for-
feitures of $324,244) ........ 8,504,613
Defaulted loans................. 376,919 376,919
Interfund transfers................ 412,665 1,751,168
Loan advances...................... (274,858) (385,385) 5,920,813
----------- ----------- ----------- ------------
Total additions............... 2,753,427 5,147,386 3,230,914 65,014,770
DEDUCTIONS
Distributions to participants:
Securities, fair value ......... 686,725 596,342 19,884,384
Cash............................ 748,612 6,987,919
----------- ----------- ----------- ------------
Total deductions ............. 686,725 596,342 748,612 26,872,303
----------- ----------- ----------- ------------
Net additions/(deductions) ........ 2,066,702 4,551,044 2,482,302 38,142,467
Net assets available for plan
benefits at December 31, 1995 7,462,800 8,951,391 7,911,492 335,167,410
----------- ----------- ----------- ------------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS AT
DECEMBER 31, 1996 $ 9,529,502 $13,502,435 $10,393,794 $373,309,877
=========== =========== =========== ============
<FN>
See notes to financial statements
</FN>
</TABLE>
<PAGE>
Page 13
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
Year Ended December 31, 1995
(Part 1 of 2)
<CAPTION>
Transamerica John
Corporation Transamerica Transamerica Hancock
Common Transamerica Fixed Transamerica Equity Cash
Stock Bond Income Equity Index Reserve
Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS
Net investment income:
Interest................. $ 63,635 $ 3,179,887 $ 148,147
Dividend................. 6,253,457
------------ ----------- -----------
Net investment income.... 6,317,092 3,179,887 148,147
Net realized investment gain
and change in net unrealized
appreciation of investments ... 72,928,533 $ 790,668 $ 6,365,510 $ 1,076,046
Contributions:
Participants................. 4,321,150 581,499 2,375,423 2,959,499 667,139 272,627
Loan repayment................ 1,253,637 91,018 609,699 537,233 119,455 68,378
Employer (reduced by for-
feitures of $402,690)....... 8,037,553
Interfund transfers........... (9,177,146) 563,497 3,276,844 2,102,343 142,863 1,960,347
Loan disbursements............ (1,345,349) (124,961) (1,208,934) (430,533) (107,425) (202,722)
------------ ---------- ------------ ----------- ----------- -----------
Total additions........... 82,335,470 1,901,721 8,232,919 11,534,052 1,898,078 2,246,777
DEDUCTIONS
Distributions to participants:
Securities, at fair value... 13,947,455 214,460 975,920 302,822
Cash........... 140,251 4,854,941 1,223,577
------------ ---------- ------------ ----------- ----------- -----------
Total deductions........... 14,087,706 214,460 4,854,941 975,920 302,822 1,223,577
------------ ---------- ------------ ----------- ----------- -----------
Net additions ............... 68,247,764 1,687,261 3,377,978 10,558,132 1,595,256 1,023,200
Net assets available for plan
benefits at December 31, 1994 157,931,077 3,095,177 45,124,461 13,323,507 2,644,196 2,233,718
------------ ---------- ------------ ----------- ----------- -----------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS AT
DECEMBER 31, 1995 ............ $226,178,841 $4,782,438 $48,502,439 $23,881,639 $ 4,239,452 $ 3,256,918
============ ========== =========== =========== =========== ===========
<FN>
See notes to financial statements
</FN>
</TABLE>
<PAGE>
Page 14
<TABLE>
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
Year Ended December 31, 1995
(Part 2 of 2)
<CAPTION>
T.Rowe
Dodge Price
& Cox Equity
Balanced Income Participant
Fund Fund Loans Total
<S> <C> <C> <C> <C>
ADDITIONS
Net investment income:
Interest .................. $ 570,839 $ 3,962,508
Dividend .................. $ 385,103 $ 470,457 7,109,017
----------- ----------- ----------- ------------
Net investment income ... 385,103 470,457 570,839 11,071,525
Net realized investment gain
and change in net unrealized
appreciation of investments ... 1,159,541 1,436,683 83,756,981
Contributions:
Participants .................. 1,140,779 1,275,354 13,593,470
Loan repayment................. 199,863 237,989 (3,117,272)
Employer (reduced by for-
feitures of $402,690) ....... 8,037,553
Interfund transfers............... 508,526 622,726
Loan disbursements................ (255,767) (226,609) 3,902,300
----------- ----------- ----------- ------------
Total additions.............. 3,138,045 3,816,600 1,355,867 116,459,529
DEDUCTIONS
Distributions to participants:
Securities, at fair value...... 1,006,212 394,705 16,841,574
Cash........................... 517,566 6,736,335
----------- ----------- ----------- ------------
Total deductions 1,006,212 394,705 517,566 23,577,909
----------- ----------- ----------- ------------
Net additions..................... 2,131,833 3,421,895 838,301 92,881,620
Net assets available for plan
benefits at December 31, 1994 5,330,967 5,529,496 7,073,191 242,285,790
----------- ----------- ----------- ------------
NET ASSETS AVAILABLE
FOR PLAN BENEFITS AT
DECEMBER 31, 1995 $ 7,462,800 $ 8,951,391 $ 7,911,492 $335,167,410
=========== =========== =========== ============
<FN>
See notes to financial statements
</FN>
</TABLE>
<PAGE>
Page 15
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 1997
NOTE A--Description of the Plan
The Transamerica Corporation Employees Stock Savings Plan (the Plan) is a
profit-sharing plan with provisions for pretax salary deferrals under Section
401(k) of the Internal Revenue Code (the Code). (Prior to January 1, 1994, the
Plan was an employee stock ownership plan which permitted Section 401(k) salary
deferrals.) Substantially all salaried employees of Transamerica Corporation
(the Corporation) and its subsidiaries may participate upon completion of one
year of service. However, effective January 1, 1998 this one-year requirement
will be eliminated. Subject to certain restrictions, participants generally may
defer 1% to 6% of their salaries and contribute that amount to the Plan. These
salary deferrals are matched at 75% by employer contributions. Most non-highly
compensated employees (as defined) are permitted to defer an additional 1% to 6%
of their salaries as contributions to the Plan. Effective January 1, 1997,
highly compensated employees (as defined) are permitted to defer an additional
1% to 4% of their salaries as contributions to the Plan. These additional
contributions are not matched by the employer.
Participant contributions under the Plan are invested, as directed by the
participant, in any of eight investment alternatives: the Transamerica
Corporation Common Stock Fund, the Transamerica Premier Cash Reserve Fund, the
Transamerica Bond Fund, the Dodge & Cox Balanced Fund, the T. Rowe Price Equity
Income Fund, the Transamerica Fixed Income Fund, the Transamerica Equity Index
Fund, and the Transamerica Equity Fund. All employer matching contributions are
invested in the Transamerica Corporation Common Stock Fund. Participants age 60
or older may redirect the investment of all or part of their employer matching
contributions from the Transamerica Corporation Common Stock Fund to any of the
other available investment alternatives.
Eligible participants may, subject to certain restrictions, apply for
loans from their plan accounts. Loan repayments are deposited back into the
participant's plan accounts and allocated to the various investment funds
according to the participant's election for allocation of pretax contributions.
Loans from the employer matching account are not permitted.
The Corporation and its participating subsidiaries, including
Transamerica Life Insurance and Annuity Company (the issuer of the group pension
contract under which the Transamerica Fixed Income Fund is maintained and the
sponsoring company for the Transamerica Bond Fund, Transamerica Equity Fund and
Transamerica Equity Index Fund), are defined as parties in interest with respect
to the Plan under the Employee Retirement Income Security Act of 1974 (ERISA).
Transactions between the Plan and such parties in interest are intended to
qualify for one or more of the prohibited transaction exemptions under ERISA.
The Plan provides that participants acquire a vested interest in the
employer account balances based upon their years of service with the Corporation
or its participating subsidiaries. If a participant terminates employment before
full vesting, the nonvested portion of the participant's interest will be
forfeited. The Corporation has the right to change or terminate the Plan at any
time. In the event the Plan is terminated, the Plan provides for full vesting of
all participants' employer account balances.
<PAGE>
Page 16
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 1997
NOTE B--Significant Accounting Policies
Accounting for Investments: The Plan's investment in the Transamerica
Corporation Common Stock Fund is valued at the closing price on the last
business day of the year on the New York Stock Exchange Composite Transactions.
The Transamerica Fixed Income Fund is valued at cost plus accrued
interest income and the Transamerica Premier Cash Reserve Fund is valued at
cost, which approximates fair value. Shares of the Transamerica Bond Fund, the
Transamerica Equity Fund, the Transamerica Equity Index Fund, the Dodge & Cox
Balanced Fund, and the T. Rowe Price Equity Income Fund, are valued at the net
asset value per share reported by the Fund at December 31.
Investment transactions are accounted for on the date the securities are
purchased or sold (trade date). Repurchases of shares within the Plan are
accounted for at the net asset value on the day they are sold by employees or
forfeited to the Plan. The unit price is calculated as the net asset value of
the stock as listed in the New York Stock Exchange Composite Transactions as
determined by the Plan administrator in a uniform and nondiscriminatory manner.
The cost of shares sold or distributed is determined on an average cost basis.
Dividend income from the Transamerica Corporation Common Stock Fund, Dodge & Cox
Balanced Fund and T. Rowe Price Equity Income Fund is recorded on the
ex-dividend date. Interest income from Transamerica Premier Cash Reserve Fund,
Transamerica Fixed Income Fund, Northern Trust's Short Term Investment Fund
(cash equivalent) and participant loan is accrued as earned. Interest charged on
participant loan is at a fixed rate and is calculated at the Northern Trust
prime rate plus one percent.
Expenses: All Plan administrative expenses are paid by the Corporation
and its participating subsidiaries.
Income Taxes: The Internal Revenue Service has issued a determination
letter dated June 13, 1996, that the Plan qualifies, in form, under Section
401(a) of the Internal Revenue Code of 1986, as amended (the "Code"), and the
underlying trust is, therefore, exempt from federal income taxes under Section
501(a) of the Code. Under a tax-qualified plan, participants are not subject to
income tax on employer contributions, contributions made through salary
deferrals, or income credited to their accounts until these amounts are
distributed.
Certain amounts reported in the financial statements are based on
management estimates. Such amounts may ultimately differ from those estimates.
<PAGE>
Page 17
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 1997
NOTE C--Reportable Transactions
<TABLE>
Changes in the Plan's investment in the Transamerica Corporation Common Stock
Fund during each of the three years in the period ended December 31, 1997 are
summarized as follows:
<CAPTION>
Shares Cost
<S> <C> <C>
Balance at December 31, 1994 3,132,017 $113,826,676
Purchases 338,636 20,825,900
Sale for transfer (152,156) (5,226,403)
Sale for loan distribution (21,772) (974,429)
Distributions (215,815) (7,868,446)
Fair value of forfeiture (6,105) (392,441)
---------- ------------
Balance at December 31, 1995 3,074,805 120,190,857
Purchases 280,273 21,015,013
Sale for transfer (99,125) (3,695,996)
Sale for loan distribution (30,706) (1,473,526)
Distributions (210,255) (8,228,446)
Fair value of forfeiture (4,117) (308,666)
--------- ------------
Balance at December 31, 1996 3,010,875 127,499,236
Purchases 217,965 20,114,149
Sale for transfer (166,893) (6,667,008)
Sale for loan distribution (27,311) (1,425,115)
Distributions (361,317) (15,339,431)
Fair value of forfeiture (2,163) (143,481)
--------- ------------
Balance at December 31, 1997 2,671,156 $124,038,350
========= ============
</TABLE>
<PAGE>
Page 18
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 1997
NOTE C--Reportable Transactions (Continued)
During 1997, there was one open market purchase of Transamerica
Corporation Common Stock totaling 2,992 shares at a cost of $283,642 and 38 open
market sales of Transamerica Corporation Common Stock totaling 294,248 shares
for $27,924,952. (For the Transamerica Fixed Income Fund there were 134
purchases totaling $9,300,389 and 1,013 sales totaling $13,965,844.) These
constitute a series of transactions in excess of 5% of the current value of the
Plan's assets, which are defined as category (iii) reportable transactions under
ERISA.
Northern Trust Company, as Trustee for the Plan, temporarily invests
certain cash receipts of the plan in Northern Trust's Short Term Investment Fund
prior to investing the funds in the participants' selected investments. During
1997, there were $52,991,270 in purchases of the Short Term Investment Fund and
$51,557,055 in sales which constitutes a series of transactions in excess of 5%
of the current value of the Plan's assets, and which are defined as category
(iii) reportable transactions under ERISA. There were no category (i), (ii) or
(iv) reportable transactions during 1997. The Plan incurred no expenses, and
realized no gain or loss except for interest earned during the period the units
were held by the Plan, on these transactions.
NOTE D--Changes in Unrealized Appreciation (Depreciation) of Investments
The changes in unrealized appreciation (depreciation) of investments
result from fluctuations in the fair value of securities held. The following
table shows the unrealized appreciation (depreciation) of investments at
December 31, 1997, 1996 and 1995, and the changes in unrealized appreciation
(depreciation).
<PAGE>
Page 19
TRANSAMERICA CORPORATION
EMPLOYEES STOCK SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS (Continued)
December 31, 1997
<TABLE>
NOTE D--Changes in Unrealized Appreciation (Depreciation) of Investments
(Continued)
<CAPTION>
Transamerica T.Rowe
Corporation Transamerica Dodge Price
Common Transamerica Transamerica Equity & Cox Equity
Stock Bond Equity Index Balanced Income
Fund Fund Fund Fund Fund Fund Total
<S> <C> <C> <C> <C> <C> <C> <C>
UNREALIZED APPRECIATION
(DEPRECIATION) AT
DECEMBER 31, 1994 $ 41,991,165 $ (13,590) $ 1,706,964 $ 132,801 $ (59,124) $ (132,385) $ 43,625,831
Net increase in unrealized
appreciation in 1995 .......... 61,894,361 710,951 5,508,120 955,305 979,366 1,447,083 71,495,186
------------ ---------- ----------- --------- ---------- ----------- -----------
UNREALIZED APPRECIATION
AT DECEMBER 31, 1995 103,885,526 697,361 7,215,084 1,088,106 920,242 1,314,698 115,121,017
Net increase in unrealized
appreciation in 1996 .......... 6,474,360 110,391 7,161,534 972,163 811,346 1,514,999 17,044,793
------------ ---------- ----------- --------- ---------- ----------- ------------
UNREALIZED APPRECIATION
AT DECEMBER 31, 1996 110,359,886 807,752 14,376,618 2,060,269 1,731,588 2,829,697 132,165,810
Net increase in unrealized
appreciation in 1997 .......... 50,079,816 627,692 17,857,815 2,429,150 1,156,483 2,355,274 74,506,230
------------ ---------- ----------- --------- ---------- ----------- ------------
UNREALIZED APPRECIATION
AT DECEMBER 31, 1997 $160,439,702 $1,435,444 $32,234,433 $4,489,419 $2,888,071 $ 5,184,971 $206,672,040
============ ========== =========== ========== ========== =========== ============
</TABLE>
<PAGE>
EX-23.1
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in Registration Statements on
Forms S-8 (File Nos. 2-83724, 33-12324, 33-38267 and 33-55587) pertaining to the
Transamerica Corporation Employee Stock Savings Plan of our report dated
February 20, 1998, with respect to the financial statements of Transamerica
Corporation Employee Stock Savings Plan included in this Annual Report on Form
11-K for the year ended December 31, 1997.
Ernst & Young LLP
Los Angeles, California
March 26, 1998
