TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
REPORT OF EXAMINATION
DECEMBER 31, 1995
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C O N T E N T S
CERTIFIED PUBLIC ACCOUNTANT'S REPORT . . . . . . 4
STATEMENT OF FINANCIAL CONDITION . . . . . . . . 5
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY . 6
NOTES TO FINANCIAL STATEMENTS . . . . . . . . . 7-12
ADDITIONAL INFORMATION . . . . . . . . . . . . . 13
SIGNATURE PAGE . . . . . . . . . . . . . . . . . 14
INDEX TO EXHIBITS . . . . . . . . . . . . . . . 15
EXHIBIT 23 - CONSENT OF INDEPENDENT ACCOUNTANT . 16
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The Administrative Committee and Participants of
Tandy Employees Supplemental Stock Program
Fort Worth, Texas
INDEPENDENT AUDITORS REPORT
I have audited the accompanying statement of financial condition
of the Tandy Employees Supplemental Stock Program as of December 31, 1995
and 1994, and the related statement of income and changes in plan equity
for the years ended December 31, 1995, 1994, and 1993. These financial
statements are the responsibility of the Program's management. My
responsibility is to express an opinion on these financial statements
based on my audit.
I conducted my audit in accordance with generally accepted auditing
standards. Those standards require that I plan and perform my audit to
obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit also includes
assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. I believe that my audit provides
a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of the Tandy
Employees Supplemental Stock Program as of December 31, 1995 and 1994,
and results of its operations for the years ended December 31, 1995, 1994
and 1993 in conformity with generally accepted accounting principles.
My audit was made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule of
assets held for investment purposes is presented for purposes of
complying with the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security
Act of 1974 and is not a required part of the basic financial statements.
The supplemental schedule has been subjected to the auditing procedures
applied in the audit of the basic financial statements and, in my
opinion, is fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
CURTIS B. MORRISON, CPA
Fort Worth, Texas
March 19, 1996
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TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
STATEMENT OF FINANCIAL CONDITION
DECEMBER 31, 1995 AND 1994
PLAN ASSETS
___________
<CAPTIONS>
1995 1994
____ ____
Investment in Securities of
Participating Employer (Note B):
Common Stock $10,752,484 $11,839,350
Contributions Receivable:
Tandy Employees
Supplemental Stock Program 287,480 727,174
_______ _______
TOTAL $11,039,964 $12,566,524
___________ ___________
LIABILITIES AND PLAN EQUITY
___________________________
Liabilities $ 0 $ 0
___________ ___________
Plan Equity:
Participants' Interest in Tandy
Employees Supplemental Stock
Program $11,039,964 $12,566,524
=========== ===========
The accompanying notes are an integral part of these financial
statements.
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TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
FOR THE YEAR ENDED DECEMBER 31, 1995, 1994 AND 1993
<CAPTIONS>
1995 1994 1993
Investment Income:
Interest $ 0 $ 0 $ 0
Dividend 0 0 0
__________ ___________ __________
$ 0 $ 0 $ 0
__________ ___________ __________
Realized Gain (Loss) on
Securities (Note C): $ 0 $ 0 $ 0
___________ ___________ __________
Increase (Decrease) in
Unrealized Appreciation
of Investments (Note D) $<2,633,726> $ <276,487> $ 4,369,502
____________ ___________ ___________
Contributions (Note A):
Participating Employees $ 1,094,149 $ 1,290,195 $ 1,161,957
Participating Employer 875,395 1,032,156 912,966
Other Contributions 177,299 168,288 183,838
$ 2,146,843 $ 2,490,639 $ 2,258,761
Less:
Withdrawals of
Participants' Interests $ 1,039,677 $ 1,122,249 $ 2,437,718
____________ ___________ ___________
Net Increase (Decrease)
in Plan for the Year
ended 12-31-95/94/93 $<1,526,560> $ 1,091,903 $ 4,190,545
Add Plan Equity at
Beginning of Year
1-1/94/93/92 12,566,524 11,474,621 7,284,076
____________ ___________ ___________
Plan Equity at
End of Year
12-31-95/94/93 $11,039,964 $12,566,524 $11,474,621
============ =========== ===========
The accompanying notes are an integral part of these financial
statements.
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TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1995, 1994 AND 1993
NOTE A - DESCRIPTION OF THE PROGRAM
The following description of the Tandy Employees Supplemental
Stock Program (the "Program") provides only general information.
Participants should refer to the Program Prospectus for a more
complete description of the Programs provisions.
GENERAL
The purpose of the Program is to assist the employees of Tandy
Corporation and its participating affiliates and associates
(collectively called "Company") in building personal net worth
and to encourage ownership in the Company by providing a Program
for regular investment in the Company's common stock after an
employee has reached a maximum salary deferral contribution limit
under the Tandy Employees Deferred Salary and Investment Plan.
The Program is subject to Title I of the Employee Retirement
Income Security Act of 1974 (ERISA) relating to the protection
of employee benefit rights, but is not subject to Title IV,
relating to plan termination insurance coverage, and such
insurance will not be extended to participants in the Program
in the future.
CONTRIBUTIONS
Through authorized payroll deduction a participant could contribute
5% of his or her gross salary or wages to the Program after reaching a
maximum salary deferral contribution limit under the Tandy Employees
Deferred Salary and Investment Plan. Effective January 1, 1996 the
percentage was changed from 1 to 8% of his or her gross salary or
wages after reaching a maximum salary deferral contribution limit
under the Tandy Fund.
The Company makes contributions to the Program equal to 80% of
the participant's contribution.
Cash dividends are added to the participant's account as Other
contributions paid on the shares of common stock credited to a
participant's account. These other contributions are not subject to
matching contributions by the Company.
The participant's contributions and the Company matching contri-
bution are a part of the employee's current compensation, and,
as such, are subject to all applicable federal, state, and local
income, federal insurance contributions act and other taxes. The
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TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1995, 1994 AND 1993
NOTE A - DESCRIPTION OF THE PROGRAM (continued)
cash dividends allocated to a participant's account are taxable
to the participant for the calendar year allocated.
As promptly as practicable after the end of each calendar quarter
the participant's contribution, the Company contribution, and any
Other contributions are used for the acquisition of the Company's
common stock with shares being credited to the participant's
account on the basis of the number of shares purchased at a price
equal to the average of the closing prices of the Company common stock
as reported for the New York Stock Exchange Composite Transactions for
each trading day in the calendar month for which the contributions are
made.
<CAPTIONS>
The following is a schedule of Employee, Company, and Other
contributions:
1995 1994 1993
____ ____ ____
Employees $1,094,149 $1,290,195 $1,161,957
__________ __________ __________
Company $ 875,395 $1,032,156 $ 912,966
__________ __________ __________
Other $ 177,299 $ 168,288 $ 183,838
__________ __________ __________
PARTICIPANTS' ACCOUNTS
Each participant is mailed a quarterly statement showing his or
her contributions to date, Company and Other contributions to
date, the number of shares purchased and the average share price
for shares purchased to date. Each participant is also mailed a
copy of the annual report of the Company, any appendix to the
prospectus, and the summary annual report.
VESTING
The participants' accounts are fully vested at the end of each
calendar quarter.
PAYMENT OF BENEFITS
The distribution of the Company common stock to the participant is
not a taxable event. Cash paid in lieu of stock upon withdrawal
will, to the extent that it exceeds or is less than the cost
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TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1995, 1994 AND 1993
NOTE A - DESCRIPTION OF THE PROGRAM (continued)
basis of the Company common stock, be treated as long or short term
capital gain or loss, respectively.
A participant will recognize gain or loss on subsequent disposition
of his or her common stock, measured by the difference between the
amount realized and the cost basis.
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
VALUATION OF SECURITIES
The Tandy Corporation common stock is valued at the closing price
according to the New York Stock Exchange Composite Transactions.
<CAPTIONS>
SCHEDULE OF INVESTMENTS IN SECURITIES
OF PARTICIPATING EMPLOYER
NO. OF VALUE
SHARES COST 12-31-95
______ ____ ________
COMMON STOCK
Tandy Corporation
Common Stock 259,096 $9,563,074 $10,752,484
__________ ___________
CONTRIBUTIONS
The contributions are accrued as incurred.
INCOME TAX STATUS
The Program is not a qualified plan under Section 401 of the Internal
Revenue Code. All items of income and gains and losses are treated as
received or incurred directly by the participants for federal income
tax purposes.
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TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1995, 1994 AND 1993
NOTE C - REALIZED GAIN ON SECURITIES
None (No sale of securities was made during the year).
NOTE D - UNREALIZED APPRECIATION
<CAPTIONS>
1995 1994 1993
____ ____ ____
Unrealized Appreciation
(Depreciation)
12-31-95/94/93 $ 1,189,410 $3,823,136 $4,099,623
Unrealized Appreciation
(Depreciation)
12-31-94/93/92 3,823,136 4,099,623 <269,879>
___________ __________ __________
Net Increase (Decrease)
for Year ended
12-31-95/94/93 $<2,633,726> $<276,487> $4,369,502
============ ========== ==========
The unrealized appreciation or depreciation of securities held for
investment for financial statement reporting prepared in conformity with
generally accepted accounting principles differ from that for income tax
reporting.
Generally accepted accounting principles measure unrealized appreciation
or depreciation as the difference between the securities' market value at
the Program's year end and its historical cost. The unrealized
appreciation or depreciation for income tax reporting is the difference
between the securities' market value at the plan year end and its current
value at the beginning of the plan year.
A participant's account is increased or decreased by the unrealized
appreciation or depreciation recognized under generally accepted
accounting principles.
NOTE E - CHANGES TO THE PROGRAM
See the attached amendments made to the Program during the 1995 year.
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AMENDMENT IV
TO TRUST AGREEMENT OF THE TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
This Amendment No. 4 made as of the 31st day of July, 1995 between
Tandy Corporation, a corporation duly organized and existing under the
laws of the State of Delaware, with its principal place of business at
Fort Worth, Tarrant County, Texas, hereinafter called "Company" and Bank
One, Texas, NA, hereinafter called "Trustee";
WITNESSETH:
WHEREAS, on the fourteenth day of February, 1990, Company and Trustee
entered into an agreement establishing the Tandy Employees Supplemental
Stock Program, to be effective as and from the first day of September,
1989, hereinafter called "Program"; and
WHEREAS, the Company and Trustee desire to make certain amendments to
the Program:
NOW, THEREFORE, the Program is amended as follows:
1. The second WHEREAS clause of the Program is amended by deleting
same in its entirety and substituting the following in lieu
thereof:
WHEREAS, the program provides for employee payroll deductions at a
rate up to 8% of a Participant's Earnings after the Participant has
reached the maximum DIP contribution and a Company matching contribution
equal to 80% of the Participant's payroll deduction being paid over to
Tandy and the crediting of these funds to a Participant's account, the
balance of which will be used to purchase Tandy Stock, at regular
intervals at current market prices, which Tandy Stock will be held by
the Trustee until such time as a Participant meets the withdrawal or
distribution requirements set out in the Program; and
2. Article V. A. 1. of the Program is amended by deleting same in
its entirety and substituting the following in lieu thereof:
1. After receipt of a payroll deduction form by the Program
Administration office, Participants shall have Employee
Payroll Deductions withheld at the rate of 1%, 2%, 3%, 4%, 5%,
6%, 7% or 8% of Earnings, in excess of the maximum amount of
Earnings needed to reach one of the contribution limits to
DIP as set out in the Internal Revenue Code of 1986.
Participation in the Program is for the remainder of the
DIP Plan Year.
3. Any reference to Tandy Employees Deferred Salary and Investment
Plan or DIP in the Plan are hereby amended to read "Tandy Fund,
formerly the Tandy Employees Deferred Salary and Investment Plan,"
or "Tandy Fund, formerly DIP,".
4. Any reference to the "DIP Plan Year" is hereby amended to read
"Tandy Fund Plan Year", except that the first time the "DIP Plan
Year" reference appears in the Plan the text shall be amended to
read "Tandy Fund, formerly DIP, Plan Year ("Tandy Fund Plan Year")".
5. Article X A. 1. of the Program is amended by deleting the last
sentence in its entirety and substituting the following in lieu
thereof.
A withdrawal will be deemed to be necessary as a Financial Hardship
withdrawal if both of the following requirements are met: (1) the
withdrawal is not in excess of the amount needed to satisfy the Financial
Hardship plus any amounts necessary to pay any federal, state or local
taxes or penalties reasonably anticipated to result from such payment;
and (2) the Participant has obtained all distributions, under all plans
of the Company except for hardship distributions from the Participant's
Deferred Salary Account in the Tandy Fund, formerly DIP, and the ESOP
account in the Tandy Fund, formerly the Tandy Employees Stock Ownership
Plan.
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6. Any reference to the "Other account" in DIP is hereby amended to
"Voluntary account" or "Company account" in the "Tandy Fund,
formerly DIP," as the context requires.
7. The definitions of "DIP" and "TIP" are hereby deleted from the
Plan.
8. Effective July 1, 1995, the TIP suspension provisions are hereby
deleted from Section X F of the Plan.
9. Unless otherwise indicated the effective date of this Amendment
shall be January 1, 1996.
IN WITNESS WHEREOF, Company and Trustee have caused these Amendments
to be executed by their duly appointed officers and their corporate seals
to be hereunto affixed on the date first written above.
Attest: (SEAL) TANDY CORPORATION
__________________________ _________________________
Assistant Secretary Richard L. Ramsey
Vice President and Controller
Attest: (SEAL) BANK ONE, TEXAS, NA
__________________________ _________________________
Trust Officer Vice President
& Trust Officer
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 11-K
REPORT PURSUANT TO
SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the Calendar Year Ended December 31, 1995
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
(full title of Program)
TANDY CORPORATION
1800 One Tandy Center
Fort Worth, Texas 76102
(Name of issuer and address of principal executive offices)
Index to Exhibits is on sequential page number 15
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
ADDITIONAL INFORMATION
YEAR ENDED DECEMBER 31, 1995
<CAPTIONS>
ITEM 30a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
Description of Current
Issuer Investment Cost Value
______ ______________ __________ ___________
Tandy Corporation Common Stock $9,563,074 $10,752,484
__________ ___________
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SIGNATURES
__________
Pursuant to the requirements of the Securities Exchange Act of
1934, the Administrative Committee has duly caused this report to
be signed by the undersigned hereunto duly authorized.
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
by
_____________________________________
M. Moad
Administrative Committee Member
by
_____________________________________
D. Johnson
Administrative Committee Member
Date
_________________________
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<CAPTIONS>
Index to Exhibits
Exhibit Description Page
Number of Exhibit Number
______ __________ ______
23 Consent of 16
Independent
Accountant
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EXHIBIT 23
CONSENT OF INDEPENDENT ACCOUNTANT
I consent to the incorporation of my report dated December 31,
1995, accompanying the financial statements included in this annual
report on Form 11-K, in the prospectus forming part of Tandy
Corporation's registration statement on Form S-8 for its
Tandy Employees Supplemental Stock Program.
________________________________
CURTIS B. MORRISON, CPA
Fort Worth, Texas
March 19, 1996
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