FORM 11-K
[ X ] ANNUAL REPORT PURSUANT TO
SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the Fiscal Year Ended March 31, 1994
OR
[ ] TRANSITION REPORT PURSUANT TO
SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the Transition Period from ___ to ___
Commission File Number 1-5571
______
TANDY EMPLOYEES DEFERRED SALARY AND INVESTMENT PLAN
(full title of plan)
TANDY CORPORATION
1800 One Tandy Center
Fort Worth, Texas 76102
(Name of issuer and address of principal executive office)
Index to Exhibits is on sequential page number 17
TANDY EMPLOYEES DEFERRED SALARY AND INVESTMENT PLAN
FORT WORTH, TEXAS
REPORT OF EXAMINATION
MARCH 31, 1994
C O N T E N T S
_______________
Page
CERTIFIED PUBLIC ACCOUNTANT'S REPORT.............. 4
STATEMENT OF FINANCIAL CONDITION.................. 5
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY.... 6
NOTES TO FINANCIAL STATEMENTS..................... 7-13
ADDITIONAL INFORMATION............................ 14-15
SIGNATURE PAGE.................................... 16
INDEX TO EXHIBITS................................. 17
EXHIBIT 23 - CONSENT OF INDEPENDENT ACCOUNTANT..... 18
The Administrative Committee and Participants of Tandy
Employees Deferred Salary and Investment Plan Fort Worth,
Texas
INDEPENDENT AUDITOR'S REPORT
____________________________
I have audited the accompanying statement of financial
condition of the Tandy Employees Deferred Salary and
Investment Plan as of March 31, 1994 and 1993, and the
related statement of income and changes in the plan equity
for the years ended March 31, 1994, 1993 and 1992. These
financial statements are the responsibility of the Plan's
management. My responsibility is to express an opinion on
these financial statements based on my audit.
I conducted my audit in accordance with generally accepted
auditing standards. Those standards require that I plan and
perform 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. I believe that my audit provides a
reasonable basis for my opinion.
In my opinion, the financial statements referred to above
present fairly, in all material respects, the financial
status of the Tandy Employees Deferred Salary and Investment
Plan as of March 31, 1994 and 1993, and results of its
changes therein for the years ended March 31, 1994, 1993 and
1992, in conformity with generally accepted accounting
principles.
My audit was made for the purpose of forming an opinion on
the basic financial statements taken as a whole. The
supplemental schedules of assets held for investment purposes
and reportable transactions are presented for purposes of
complying with the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974 and are not a required
part of the basic financial statements. The supplemental
schedules have been subjected to the auditing procedures
applied in the audit of the basic financial statements and,
in my opinion, are fairly stated in all material respects in
relation to the basic financial statements taken as a whole.
CURTIS B. MORRISON, CPA
Fort Worth, Texas
June 17, 1994
TANDY EMPLOYEES DEFERRED SALARY AND INVESTMENT PLAN
FORT WORTH, TEXAS
STATEMENT OF FINANCIAL CONDITION
MARCH 31, 1994 AND 1993
<CAPTIONS>
PLAN ASSETS
___________
1994 1993
______________ ______________
Investment in Securities of Participating
Employer (Note B):
Common Stock (Cost $75,101,623.57 in
1994 and $83,866,531.16 in 1993) $76,537,044.00 $69,740,715.00
______________ ______________
Investments in Securities of Unaffiliated
Issuers (Note B):
Marketable Securities -
Common Stock (Cost $152,384.50 in
1994 and $1,011,278.12 in 1993) $ 116,382.50 $ 965,445.00
Other Securities - Short Term
Money Market Fund (Cost $3,255,538.89
in 1994 and $2,771,609.82 in 1993) 3,255,538.89 2,771,609.82
______________ ______________
$ 3,371,921.39 $ 3,737,054.82
______________ ______________
Contributions Receivable:
Employees - Tandy Employees Deferred
Salary and Investment Plan $ 597,036.41 $ 646,947.76
______________ ______________
Accrued Receivables:
Interest $ 33,159.01 $ 29,376.20
Due from Other 505.46 112.21
______________ ______________
$ 33,664.47 $ 29,488.41
______________ ______________
Notes Receivable from Participants
(Note A) $ 3,832,596.10 $ 3,063,287.84
______________ ______________
$84,372,262.37 $77,217,493.83
______________ ______________
______________ ______________
LIABILITIES AND PLAN EQUITY
___________________________
Liabilities $ 0 $ 0
______________ ______________
Plan Equity:
Participants Interest in Tandy
Employees Deferred Salary and
Investment Plan $84,372,262.37 $77,217,493.83
______________ ______________
$84,372,262.37 $77,217,493.83
______________ ______________
______________ ______________
The accompanying notes are an integral part of these financial statements.
TANDY EMPLOYEES DEFERRED SALARY AND INVESTMENT PLAN
FORT WORTH, TEXAS
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
FOR THE YEARS ENDED MARCH 31, 1994, 1993 AND 1992
<CAPTIONS>
1994 1993 1992
______________ ______________ ______________
Investment Income:
Interest-Other $ 372,716.10 $ 323,889.74 $ 316,244.33
Dividends-Participating
Employer 1,393,529.55 1,404,561.15 1,366,285.95
______________ ______________ ______________
$ 1,766,245.65 $ 1,728,450.89 $ 1,682,530.28
Less: Interest Expense 0 0 0
______________ ______________ ______________
$ 1,766,245.65 $ 1,728,450.89 $ 1,682,530.28
______________ ______________ ______________
Realized Gain (Loss) on
Securities (Note C):
Employer Securities $ 1,208,857.50 $ 0 $ 0
Other Securities <150,646.16> 0 0
______________ ______________ ______________
$ 1,058,211.34 $ 0 $ 0
______________ ______________ ______________
Increase (Decrease) in
Unrealized Appreciation
of Investments (Note E): $15,571,067.71 $<1,792,939.20> $<5,631,241.80>
______________ ______________ ______________
Contributions (Note A):
Employee $ 8,772,070.83 $ 9,958,157.88 $10,169,702.05
______________ ______________ ______________
Other Additions:
Appreciation (Depreciation)
in Value over Cost
Distributed in
Withdrawals $ 9,139.70 $ <116,721.83> $ <126,513.54>
______________ ______________ ______________
TOTAL $27,176,735.23 $ 9,776,947.74 $ 6,094,476.99
Less:
Withdrawals of
Participants' Interest 20,021,966.69 9,104,609.74 8,003,881.65
______________ ______________ ______________
Net Increase (Decrease)
in Plan for the Years
Ending 3-31-94/93/92 $ 7,154,768.54 $ 672,338.00 $<1,909,404.66>
Plan Equity at Beginning
of Year 4-1-93/92/91 77,217,493.83 76,545,155.83 78,454,560.49
______________ ______________ ______________
Plan Equity at End of
Year 3-31-94/93/92 $84,372,262.37 $77,217,493.83 $76,545,155.83
______________ ______________ ______________
______________ ______________ ______________
The accompanying notes are an integral part of these financial statements.
TANDY EMPLOYEES DEFERRED SALARY AND INVESTMENT PLAN
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 1994, 1993 AND 1992
NOTE A - DESCRIPTION OF THE PLAN
The following description of the Tandy Employees Deferred
Salary and Investment Plan (the "Plan") provides only general
information. Participants should refer to the Plan prospectus,
the DIP/TESOP summary plan description 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
the Company who have completed one year of service, of not
less than 1,000 hours per year.
The Plan is subject to Titles I and II of the Employee
Retirement Income Security Act of 1974 (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,
and such insurance will not be extended to participants in
the Plan in the future.
Contributions
_____________
A participant defers 5% of his gross salary (up to the
maximum contribution allowed by the Internal Revenue Code)
which the Company pays into the Plan as a salary reduction
contribution for the account of the participant.
For periods prior to October 1, 1990, the Company contributed
to the Plan an amount equal to 80% of the salary reduction
contributions of the participant. These Company
contributions were terminated effective October 1, 1990, the
date of commencement of Company contributions under the Tandy
Employees Stock Ownership Plan (TESOP), a noncontributory
employee stock ownership plan established by the Company on
June 29, 1990 (to be effective April 1, 1990).
A participant is not subject to current federal income
taxation on his deferred contributions to the Plan.
The following is a schedule of employee and employer
contributions:
<CAPTIONS>
1994 1993 1992
______________ ______________ ______________
Employee-
Deferred Salary $ 8,772,070.83 $ 9,958,157.88 $10,169,702.05
______________ ______________ ______________
______________ ______________ ______________
Participants' Accounts
______________________
Participants' accounts are valued as of the last day of each
March, June, September and December. Each participant is
mailed a quarterly statement showing his contributions to
date, Company contributions to date, total contributions to
date and the market value of his account. Each participant
is also mailed a copy of the annual report of Tandy
Corporation, any SPP/Plan prospectus incorporated by
reference into the registration statement on Form S-8 or an
appendix to the prospectus, any material amendment made to
any revised summary plan description booklet and the summary
annual report. New participants also receive the latest
prospectus.
Vesting
_______
The participants' accounts are fully vested at the end of
each calendar quarter, except for amounts credited to the
account because of fraud or mistake of fact.
Payments of Benefits
____________________
The taxable portion of a "lump-sum distribution" and certain
"partial distributions" may not be subject to tax upon
receipt by a participant if the distribution is rolled over
into an IRA or another qualified plan within the prescribed
time period. If a lump-sum distribution is not rolled over,
a special 5-year averaging tax (intended to minimize the tax
burden) may be available for some participants with respect
to the taxable portion of such distribution. As a general
rule, only one lump-sum distribution which is received after
attaining age 59-1/2 is eligible for the special 5-year
averaging (computed under the tax rates contained in the Tax
Reform Act of 1986) or the 10-year averaging (computed under
prior law tax rates).
If a lump-sum distribution consists in part of securities of
Tandy Corporation and InterTAN Inc., the portion of such
distribution which represents net unrealized appreciation of
such securities will not be currently taxable to the
recipient for federal income tax purposes (although a
participant may elect to include such appreciation in income,
if desired). Upon a subsequent disposition of such
securities, gain or loss will be determined generally by
reference to their basis when they were acquired by the Plan.
An additional 10% income tax is imposed on certain early
distributions included in gross income prior to attaining age
59-1/2, death or disability. The value of a participant's
interest in the Plan is includable in his gross estate upon
his death.
Loans to Participants
_____________________
Effective October 1, 1990, a participant may borrow up to 50%
of his or her account value in the Plan not to exceed the
lesser of: 1) $50,000.00, 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 $500.00, to be repaid through authorized payroll
deductions. The term of a loan is not less six months (or
multiples of six months) and not more than five years. The
interest rate of the loan is fixed by the Administrative
Committee and based on the interest rate currently being
charged for similar commercial loans. A portion, not to
exceed 50%, of the participant's dollar value interest in the
Plan is pledged as collateral for the amount of principal,
interest and any collection costs which may be owed to the
Plan.
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Valuation of Securities
_______________________
All securities except Tandy Corporation common stock are
valued at the closing price according to the respective stock
exchanges. Tandy Corporation stock is valued at the closing
price on the New York Stock Exchange less 1/4 point.
All other securities are valued at cost.
SCHEDULE OF INVESTMENTS IN SECURITIES OF
________________________________________
PARTICIPATING EMPLOYER
______________________
<CAPTIONS>
NO. OF VALUE
SHARES COST 3-31-94
______ ______________ ______________
COMMON STOCK
____________
Industrial
__________
Tandy Corporation
Common Stock 2,126,029 $75,101,623.57 $76,537,044.00
______________ ______________
______________ ______________
SCHEDULE OF INVESTMENTS IN SECURITIES OF
________________________________________
UNAFFILIATED ISSUERS
____________________
MARKETABLE SECURITIES
_____________________
<CAPTIONS>
NO. OF VALUE
SHARES COST 3-31-94
______ ______________ _____________
COMMON STOCK
____________
Industrial
__________
InterTAN Inc.
Common Stock 17,705 $ 152,384.50 $ 116,382.50*
______________ ______________
______________ ______________
_____________________
*Non-Income Producing.
OTHER SECURITIES
________________
Money Market Fund
_________________
Short-Term Money
Market Fund AIM
Short-Term
Investments Co. $ 3,255,538.89 $ 3,255,538.89
______________ ______________
______________ ______________
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.
Income Tax Status
_________________
The Plan is a qualified plan under Section 401 of the
Internal Revenue Code and is exempt from federal income taxes
under Section 501.
NOTE C - REALIZED GAIN ON SECURITIES
The realized gain or loss from the sale of securities was as
follows:
1994 1993 1992
______________ _______ _______
Participating Employer
Securities:
Sales Price $ 8,959,162.50 $ 0 $ 0
Less Cost (Avg Cost) 7,750,305.00 0 0
______________ _______ _______
Net Gain (Loss) $ 1,208,857.50 $ 0 $ 0
______________ _______ _______
______________ _______ _______
Unaffiliated Issuers'
Securities:
Sales Price $ 700,426.48 $ 0 $ 0
Less Cost (Avg Cost) 851,072.64 0 0
______________ _______ _______
Net Gain (Loss) $ <150,646.16> $ 0 $ 0
______________ _______ _______
______________ _______ _______
The realized gain or loss on the sale of securities for
financial statement reporting is prepared in conformity with
generally accepted accounting principles which differ from
the principles for income tax reporting.
Generally accepted accounting principles measure gain or loss
as the difference between the securities' sale price and its
average historical cost. The gain or loss for income tax
reporting is the difference between the securities' sale
price and its current value at the beginning of the plan
year.
A participant's account is increased or decreased by the
realized gain or loss recognized under generally accepted
accounting principles.
NOTE D - UNIT VALUE
Valuation
Quarter Ending Number of Units per Unit
______________ _______________ __________
March 31, 1993 88,816,523.5330 $0.8694055
June 30, 1993 85,311,358.1183 0.8855981
September 30, 1993 86,814,981.3226 1.0805139
December 31, 1993 80,985,515.7203 1.4328893
March 31, 1994 78,698,915.3509 1.0720893
NOTE E - UNREALIZED APPRECIATION
The following reflects the increase (decrease) in unrealized appreciation:
<CAPTIONS>
1994 1993 1992
________________ ________________ _______________
Unrealized
Appreciation
3-31-94/93/92 $ 1,399,418.43 $<14,171,649.28> $<12,378,710.08>
Unrealized
Appreciation
4-1-93/92/91 <14,171,649.28> <12,378,710.08> < 6,747,468.28>
________________ ________________ ________________
Change in
Unrealized
Appreciation
3-31-94/93/92 $ 15,571,067.71 $ <1,792,939.20> $<5,631,241.80>
________________ ________________ ________________
________________ ________________ ________________
The unrealized appreciation or depreciation of securities
held for investment for financial statement reporting were
prepared in conformity with generally accepted accounting
principles which differ from the principles for income tax
reporting.
Generally accepted accounting principles measure unrealized
appreciation or depreciation as the difference between the
securities market value at the Plan's year end and its
historical cost. The unrealized appreciation or depreciation
for income tax reporting is the difference between the
securities market value at the plan year end and its current
value at the beginning of the plan year.
A participant's account is increased or decreased by the
unrealized appreciation or depreciation recognized under
generally accepted accounting principles.
NOTE F - RELATED PARTY TRANSACTIONS
During 1993 and 1992 common stock of Tandy Corporation was
acquired from the Tandy Employees Investment Plan at its
current market value on the transaction date in the amount of
$1,077,063.00 and $2,383,037.50, respectively. During 1994
common stock of Tandy Corporation was sold to the Tandy
Corporation at its current market value on the transaction
date in the amount of $7,750,305.00.
NOTE G - CHANGES IN PLAN
No amendments were made to the Plan during 1994.
NOTE H - ADMINISTRATION OF PLAN ASSETS
The Plan's assets are held by the Trustee of the Plan.
The contributions from the participants are held and managed
by the Trustee, which invests cash received, interest, and
dividend income and makes distributions to the participants.
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.
ADDITIONAL INFORMATION
TANDY EMPLOYEES DEFERRED SALARY AND INVESTMENT PLAN
FORT WORTH, TEXAS
ADDITIONAL INFORMATION
MARCH 31, 1994
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
<CAPTIONS>
Description Current
Issuer of Investment Cost Value
______ _____________ ______________ ______________
*Tandy Corporation Common Stock $75,101,623.57 $76,537,044.00
______________ ______________
InterTAN Inc. Common Stock $ 152,384.50 $ 116,382.50
______________ ______________
Participant Loans Interest Rate
7% - 11% $ 0 $ 3,832,596.10
______________ ______________
AIM Short-Term Short-Term
Investments Co. Money Market
Fund - Fluc-
tuating rate
of interest $ 3,255,538.89 $ 3,255,538.89
______________ ______________
*Party-in-Interest to Plan.
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
<CAPTIONS>
Expenses
Identity Description Incurred Cost Current Gain or
of Party of Purchase Selling Lease with of Value <Loss>
Involved Transaction Price Price Rental Transaction Asset of Asset Transaction
________ ___________ ______________ _____________ ______ ___________ ______________ ______________ ___________
a. Plan Purchase of $22,936,910.18 $ 0 $0 $0 $22,936,910.18 $22,936,910.18 $0
Trustee Common Trust
Fund
b. Plan Sales of $22,452,981.11 $22,452,981.11 $0 $0 $22,452,981.11 $22,452,981.11 $0
Trustee Common Trust
Fund
SIGNATURES
__________
The Plan: Pursuant to the requirements of the Securities
Exchange Act of 1934, the Administrative Committee has duly
caused this annual report to be signed by the undersigned
hereunto duly authorized.
TANDY EMPLOYEES DEFERRED SALARY AND
INVESTMENT PLAN
By /s/ M. Moad
_______________________________
M. Moad
Administrative Committee Member
By /s/ J. Tanner
_______________________________
J. Tanner
Administrative Committee Member
Date June 24, 1994
_____________
Index to Exhibits
Exhibit Description Page
Number of Exhibit Number
_______ ___________ ______
23 Consent of 18
Independent
Accountant
EXHIBIT 23
CONSENT OF INDEPENDENT ACCOUNTANT
__________________________________
I consent to the incorporation of my report dated March 31,
1994, accompanying the financial statements included in this
annual report on Form 11-K, in the prospectus forming part of
Tandy Corporation's registration statement on Form S-8 for
its Tandy Employees Deferred Salary and Investment Plan.
CURTIS B. MORRISON, CPA
Fort Worth, Texas
June 17, 1994