THIS DOCUMENT IS A COPY OF THE 11-K FILED ON SEPTEMBER 27,
1996 PURSUANT TO A RULE 201 TEMPORARY HARDSHIP EXEMPTION.
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 Period Ended March 31, 1996
TANDY FUND
(full title of Program)
TANDY CORPORATION
1800 One Tandy Center
Fort Worth, Texas 76102
(Name of issuer and address of principal executive offices)
TANDY CORPORATIONTANDY FUND
FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
March 31, 1996 and 1995
TANDY CORPORATION
TANDY FUND
Index to Financial Statements and Supplemental Schedules
March 31, 1996
PAGE
Report of Independent Accountants 1
Financial Statements:
Statement of Net Assets Available for Benefits
with Fund Information at March 31, 1996 2-3
Statement of Net Assets Available for Benefits
at March 31, 1995 4
Statement of Changes in Net Assets Available for
Benefits with Fund Information for the Year Ended
March 31, 1996 5-6
Statement of Changes in Net Assets Available for
Benefits for the Year Ended March 31, 1995 7
Notes to Financial Statements 8-16
Consent of Independent Accountants 17
Supplemental Schedules:
Schedule of Assets Held for Investment Purposes
at March 31, 1996 18
Schedule of Reportable Transactions for the
Year Ended March 31, 1996 19
Schedules required by ERISA not included herein have been
omitted as there were no transactions for the type required
to be disclosed in such schedules.
REPORT OF INDEPENDENT ACCOUNTANTS
September 27, 1996
The Administrative Committee and Participants of the Tandy
Fund
In our opinion, the accompanying statement of net assets
available for benefits with fund information and the related
statement of changes in net assets available for benefits
with fund information presents fairly, in all material
respects, the net assets available for benefits of Tandy Fund
at March 31, 1996, and the changes in net assets available
for benefits for the year then ended, in conformity with
generally accepted accounting principles. 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
audit of these statements in accordance with generally
accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about
whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles
used and significant estimates made by management, and
evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for the
opinion expressed above.
As discussed in Note 2 to the financial statements, the plan
changed its method of valuing investments in Tandy common
stock.
The financial statements of the Tandy Fund (formerly, the
Tandy Employees Deferred Salary and Investment Plan) as of
and for the year ended March 31,1995 were audited by another
independent accountant whose report dated June 21, 1995
expressed an unqualified opinion of those statements.
- 1 -
TANDY CORPORATION
TANDY FUND
Statement of Net Assets Available for Benefits
with Fund Information
March 31, 1996
COMPANY DIRECTED
INVESTMENTS
<CAPTIONS>
Tandy P/S Tandy P/S Putnam Putnam
Allocated Unallocated Tandy C/S Income Voyager
ASSETS
Investments in securities of participating employer:
Restricted Preferred Stock (cost $85,592,957)
Allocated (32,826.152 shares outstanding at
March 31, 1996 $34,894,200 $ - $ - $ - $ -
Unallocated (52,766,805 shares outstanding
at March 31, 1996 - 56,091,114 - - -
Common Stock (cost $46,335,059) 1,290,920 shares
outstanding at March 31, 1996 - - 59,705,080 - -
Investments in securities of unaffiliated issuer:
Putnam Income Fund - - - 3,306,444 -
Putnam Voyager Fund - - - - 13,246,465
Putnam Asset Allocation - Growth Fund - - - - -
Putnam Asset Allocation - Balanced Fund - - - - -
Putnam Asset Allocation - Conservative - - - - -
Other securities - Short-term money market funds:
Putnam Money Market Fund - - - - -
Bank One Money Market Fund - - - - -
Notes receivable from participants - - - - -
Contributions receivable - Employees - - 71,646 21,549 120,974
Contributions receivable - Employer - 2,839,500 - - -
Total Assets 34,894,200 58,930,614 59,776,726 3,327,993 13,367,439
LIABILITIES
Interest Payable - 1,329,028 - - -
Notes Payable - 58,496,000 - - -
Total Liabilities - 59,825,028 - - -
Net assets available for benefits $34,894,200 ($894,414) $59,776,726 $3,327,993 $13,367,439
- 2 -
PARTICIPANT-DIRECTED INVESTMENTS
<CAPTIONS>
Putnam Putnam Putnam Putnam Bank One
AA Growth AA Balanced AA-Conservativ Money Mkt Money Mkt Loan Fund Total
$ - $ - $ - $ - $ - $ - $34,894,200
- - - - - - 56,091,114
- - - - - - 59,705,080
- - - - - - 3,306,444
- - - - - - 13,246,465
5,029,799 - - - - - 5,029,799
- 7,357,583 - - - - 7,357,583
- - 2,189,556 - - - 2,189,556
- - - 1,566,681 - - 1,566,681
- - - - 19,802 - 19,802
- - - - - 5,491,400 5,491,400
47,774 47,662 9,854 8,678 - - 328,137
- - - - - - 2,839,500 5,077,573 7,405,245 2,
- - - - - - 1,329,028
- - - - - - 58,496,000
- - - - - - 59,825,028
$5,077,573 $7,405,245 $2,199,410 $1,575,359 $19,802 $5,491,400 $132,240,733
- 3 -
TANDY CORPORATION
TANDY FUND
Statement of Net Assets Available for Benefits
March 31, 1995
March 31, 1995
--------------
ASSETS
Investments in securities of
participating employer:
Common stock (cost $70,040,540,
1,982,753 shares outstanding
at March 31, 1995) $ 94,180,768
Investments in securities of
unaffiliated issuer:
Short-term money market fund 2,420,251
Contributions receivable - employees 420,393
Accrued receivables:
Interest 36,256
Due from other 490
Notes receivable from participants 4,422,574
-----------
Total assets 101,480,732
____________
LIABILITIES
Due to participants 60,566
Due to trustee 1,525
_____________
Total liabilities 62,091
Net assets available for benefits $101,418,641
============
The accompanying notes are an integral part of these
financial statements.
- 4 -
TANDY CORPORATION
TANDY FUND
Statement of Changes in Net Assets Available for
Benefits with Fund
Information For the Year Ended March 31, 1996
COMPANY DIRECTED
INVESTMENTS
<CAPTIONS>
Tandy P/S Tandy P/S Putnam Putnam
Allocated Unallocated Tandy C/S Income Voyager
Investment Income
Interest - Other $ - $ - $ - $ - $ -
Dividents - participating employer - - 395,230 - -
Dividends - other - - - 52,536 -
- - 395,230 52,536 -
Less: interest expense - (1,329,028) - - -
- (1,329,028) 395,230 52,536 -
Net appreciation (depreciation) in fair value
of securities:
Employer securities 48,193 61,184 (5,855,698) - -
Other Securities - - - (115,700) 873,288
48,193 61,184 (5,855,698) (115,700) 873,288
Contributions:
Employee - - 3,467,400 405,578 1,992,894
Employer - 2,839,500 - - -
- 2,839,500 3,467,400 405,578 1,992,894
Other additions (deductions):
Transfers from TESOP fund
Preferred stock 27,157,724 64,555,132 - - -
Notes Payable - (58,496,000) - - -
Release of preferred shares proportionate to
paydown of note payable 8,525,202 (8,525,202) - - -
Interfund transfers, net - - (31,029,567) 3,022,697 10,702,323
Loans and repayments, net - - 309,980 (2,371) 650
35,682,926 (2,466,070) (30,719,587) 3,020,326 10,702,973
Total 35,731,119 (894,414) (32,712,655) 3,362,740 13,569,155
Less:
Withdrawals and termination payments 836,919 - 2,187,074 34,747 201,716
Net increase (decrease in plan assets) 34,894,200 (894,414) (34,899,729) 3,327,993 13,367,439
Cumulative effect of change in accounting - - 495,688 - -
principle
Plan eqity at beginning of year - - 94,180,767 - -
Plan equity at end of year $34,894,200 ($894,414) $59,776,726 $3,327,993 $ 13,367,439
- 5 -
PARTICIPANT-DIRECTED INVESTMENTS
<CAPTIONS>
Putnam Putnam Putnam Putnam Bank One
AA Growth AA Balanced AA-Conservative Money Mkt Money Mkt Loan Fund Total
$ - $ - $ - $ - $ 292,460 $ $ 292,460
- - - - 1,064,496 - 1,459,726
- 32,484 13,380 18,537 - - 116,937
- 32,484 13,380 18,537 1,356,956 - 1,869,123
- - - - - - (1,329,028)
- 32,484 13,380 18,537 1,356,956 - 540,095
- - - - - - (5,746,321) 274,736
274,736 305,897 34,731 - - - (4,373,369)
789,539 767,581 148,209 168,729 4,563,968 - 12,303,898
- - - - - - 2,839,500
789,539 767,581 148,209 168,729 4,563,968 - 15,143,398
- - - - - - 91,712,856
- - - - - - (58,496,000)
- - - - - - -
4,115,418 6,345,917 2,010,956 1,401,131 3,431,125 - -
(2,312) 3,171 5,101 (6,737) (1,376,308) 1,068,826 -
4,113,106 6,349,088 2,016,057 1,394,394 2,054,817 1,068,826 33,216,856
5,177,381 7,455,050 2,212,377 1,581,660 7,975,741 1,068,826 44,526,980
99,808 49,805 12,967 6,301 10,771,237 - 14,200,574
5,077,573 7,405,245 2,199,410 1,575,359 (2,795,498) 1,068,826 30,326,404
- - - - - - 495,688
- - - - 2,815,300 4,422,574 101,418,641
$5,077,573 $7,405,245 $2,199,410 $1,575,359 $ 19,802 $5,491,400 $132,240,733
The accompanying notes are an inegral part of these
financial statements.
- 6 -
TANDY CORPORATION
TANDY FUND
Statement of Changes in Net Assets Available for Benefits
For the Year Ended March 31, 1995
Year Ended
March 31, 1995
_______________
Investment income:
Interest - other $ 446,900
Dividends - participating employer 1,290,766
---------------
1,737,666
Less: interest expense -
---------------
1,737,666
---------------
Net appreciation (depreciation) in
fair value of securities:
Employer securitie 23,151,305
Other securities (25,491)
-----------------
23,125,814
-----------------
Contributions:
Employee 8,680,292
----------------
Total 33,543,772
Less: withdrawal of participants'
interest 16,497,393
Net increase in plan assets 17,046,379
---------------
Plan equity beginning of year 84,372,262
Plan equity end of year $101,418,641
==============
The accompanying notes are an integral part of these
financial statements.
- 7 -
TANDY CORPORATION
TANDY FUND
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 1996 AND 1995
NOTE 1 - DESCRIPTION OF THE PLAN
The following description of the Tandy Fund (the Plan )
provides only general information. Participants should refer
to the Plan prospectus, the 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
Tandy Corporation (the "Company") who have completed one year
of service of not less than 1,000 hours per year. Effective
January 1, 1996, the Tandy Employees Stock Ownership Plan
("TESOP"), a leveraged employee stock ownership plan was
amended and merged with the Tandy Employees Deferred Salary
and Investment Plan ("DIP), and renamed the Tandy Fund.
Other changes made to the Tandy Fund provide that it be an
individual account plan with multiple, participant-directed
investment options which are intended to comply with Internal
Revenue Code Section 404(c).
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.
As of March 31, 1996 and 1995, there were 11,495 and 5,899
employees of the Company participating in the Plan and 20,166
and 17,225 employees eligible to participate, respectively.
MERGING OF THE PLAN
As noted above, effective January 1, 1996, the assets and
liabilities of the TESOP were transferred to the Plan at
their fair market value on the date of transfer. The
following is a listing of the assets and liabilities
transferred:
Tandy Corporation Series "B"
Convertible Preferred Stock NET ASSETS
____________________________
<CAPTIONS>
ALLOCATED * UNALLOCATED * DEBT ** TRANSFERRED
______________ ______________ ______________ _____________
Shares 25,572.24 60,786.38 - -
Market price per share $ 1,062 $ 1,062 - -
_____________ _____________ _____________ _______________
Market value $ 27,157,724 $ 64,555,132 $ (58,496,000) $ 33,216,856
========== =========== =========== =========
Cost $ 25,572,245 $ 60,786,377 $ (58,496,000) $ 27,862,622
=========== =========== =========== ==========
* Represents securities of Tandy Corporation, which is a
party in interest.
** Plan debt is guaranteed by Tandy Corporation.
- 8 -
Total Company contributions and dividends remitted to the
TESOP amounted to $11,215,518 and $11,189,000 for the nine
month period ended December 31, 1995 and the year ended March
31, 1995, respectively.
CHANGE IN TRUSTEE
Effective October 1, 1995, the Plan's Administrative
Committee appointed Putnam Fiduciary Trust Company as the
Plan s trustee and instructed Bank One Trust Company, NA (the
previous trustee) to continue processing certain transactions
until such conversion was complete. The conversion was
subsequently completed on December 22, 1995.
METHODS OF OPERATION
The Tandy Fund is a defined-contribution plan consisting of a
Company-directed portion (which includes an ESOP) and a
participant-directed portion.
The ESOP portion of the Plan is comprised of two accounts;
the "Suspense" account and the "Stock" account.
The "Suspense" account had an original unallocated share
account which consisted of 100,000 shares of Tandy Corporation
Series B TESOP Convertible Preferred Stock("Stock"). The Stock
was purchased in July 1990 with funds obtained through a one
hundred million dollar ($100,000,000)borrowing. Each share
of preferred stock is convertible into 21.78 shares of Tandy
common stock and its minimum resale value is guaranteed by the
Company to be $1,000 per share. This series of stock has certain
liquidation preferences and may be redeemed by the Company at
specified premiums. The borrowing is discussed in Note 2.
The unallocated shares of Stock and their related debt are
held in the "Suspense" account. Funds are derived from
Company contributions and dividends paid on the Stock. These
funds are used to pay the debt which releases a pro rata
portion of the Stock and the Stock released is allocated to
the individual "Stock" accounts of the participants. The
allocation to participants' accounts occurs on March 31 of
each plan year.
The "Stock" account represents the participants' interests in
Stock that have been allocated to the participants'
individual accounts from the "Suspense" account.
There were approximately 32,826 and 28,361 shares of Stock
held in the individual "Stock" accounts of participants as of
March 31, 1996 and 1995 respectively.
For periods prior to October 1, 1990, the Company contributed
an additional amount to the Plan equal to 80% of the amount
of the employee's deferred salary contribution. The
Company's 80% matching contributions under the Plan were
terminated effective October 1, 1990, the date of
commencement of employer contributions under the TESOP.
Prior to January 1, 1996, participants' contributions were
invested in Company common stock ("Common Stock") only.
Effective January 1,1996, as a result of the amendment and
restatement of the Plan, participants were provided with the
option to direct their contributions in various investment
options each of which is described in more detail in Note 4.
Participants may elect to contribute portions of their total
contributions to the various investment options in increments
of 5%.
- 9 -
PARTICIPANT CONTRIBUTIONS
Prior to January 1, 1996, a participant was able to defer 5%
of his gross salary which was paid into the Plan via direct
salary reductions. Effective January 1, 1996, as a result of
the restatement and amendment of the Plan, participants are
now allowed to defer (in increments of 1%) a minimum of 1%
of gross salary and wages up to a maximum of 8%.
Contributions per participant are limited to certain annual
maximums as set forth by the Internal Revenue Code.
A participant is not subject to current federal income taxation
on his deferred contributions to the Plan.
COMPANY CONTRIBUTIONS
For periods prior to January 1, 1996, Company contributions
were made to the TESOP. Subsequent to January 1, 1996,
Company contributions will be made directly to the Tandy Fund
through the TESOP portion of the Plan. Participants become
fully vested in Company contributions upon the earlier to
occur of five years of service with the Company or three
years of participation in the Plan.
The Company is obligated to make semi-annual contributions to
the Plan to enable it to pay principal and interest on the
indebtedness directly associated with the preferred stock.
Cash dividends are paid on shares of Stock semiannually on
June 30 and December 31 at the rate of 7.5% per annum. Cash
dividends paid on all shares of Stock and additional cash
contributed by the Company to the Plan are used to make
payments of principal and interest on the debt that was
created to purchase the Stock. As the debt is reduced, a pro
rata number of shares of Stock are released and allocated to
participants' "Stock" accounts on March 31 of each year. The
allocation is based on the total number of shares to be
allocated less shares allocated in lieu of cash dividends,
multiplied by a fraction equal to the amount of a
participants' deferred salary contribution to the Plan over
the total deferred salary contributions of all participants
in the Plan for the current Plan year.
As a result of using dividends to pay the principal on the
debt, shares of Stock equal to the value of the dividend are
released and allocated to participants' accounts. The amount
of these additional shares allocated to a participant is an
amount equal to the number of shares released multiplied by a
fraction, the numerator of which isthe number of a participant's
shares owned on the allocation date, and the denominator of which
is the total shares owned by all participants.
For the plan year ending March 31, 1997, the Company has
designated that the total payments made to the Plan by the
Company (including contributions and dividends on Stock, as
defined below) will equal 4% of 1996 pre-tax profits (i.e.
income before income taxes, discontinued operations and
cumulative effect of change in accounting principle) of the
Company for the calendar year ending December 31, 1996.
However, the Company's contribution will not be less than the
amount which (when combined with the dividend on the Stock)
is necessary for the payment of principal and interest on the
Plan notes.
PARTICIPANTS' ACCOUNTS
Prior to January 1, 1996, participants' ESOP accounts were
valued as of the last day of each March, June, September and
December. Subsequent to January 1, 1996, participants' ESOP
accounts were valued as of the last day of each month.
Participants' investments in Common stock and in the various
other investment options are valued daily. Each participant
is mailed a quarterly statement showing his contributions,
Company contributions, total contributions and the market
value of his account. Each participant is also mailed a copy
of the annual report of Tandy Corporation, any Tandy Stock
- 10 -
Plan/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
A participant who was an employee on September 30, 1990, is
fully vested at all times in all shares allocated to his or
her Stock account, along with earnings thereon and
forfeitures of terminated participants' nonvested accounts.
A participant who does not meet this requirement will become
fully vested upon the earlier to occur of five years of
service with the Company or three years of participation in
the Plan. Participants are immediately vested in their
deferred and voluntary contributions to the Plan plus actual
earnings thereon.
PAYMENTS OF BENEFITS
Participants who withdraw from the plan may receive the
vested portion of their accounts under one of four withdrawal
methods, which are summarized below:
Lump sum payment in cash
Purchase of an annuity contract to provide regular monthly
income over a designated period of time, of not less
than two years nor more than fifteen years (or the
participant's actual life expectancy, if shorter).
Equal monthly cash installments for a period of up to ten
years (or the participant s actual life expectancy, if
shorter).
Part cash and part securities
FORFEITED ACCOUNTS
Forfeited nonvested accounts of terminated participants are
allocated among the remaining participants' accounts. A
total of $145,215 were allocated to participants' accounts as
a result of forfeitures for the three month period ended
March 31, 1996.
LOANS TO PARTICIPANTS
A participant may borrow up to 50% of his or her vested
account value in the Plan not to exceed the lesser of: 1)
$50,000 or 2) an amount that can be fully repaid by payroll
deduction payments that do not exceed 25% of the
participant's regular gross wages. The minimum loan amount
is $500, to be repaid through authorized payroll deductions.
The term of a loan may not be less than six months (or
multiples of six months) and not more than five years. The
interest rate of the loan is fixed by the Administrative
Committee and based on the interest rate currently being
charged for similar commercial loans. The weighted average
interest rate charged on participant loan balances was 8.57%
and 8.52% for the years ended March 31, 1996 and 1995
respectively. A potion, 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.
- 11 -
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The Plan financial statements are prepared under the accrual
method of accounting. As discussed in Note 1, multiple,
participant-directed investment options were added to the
Plan during fiscal 1996. As such, the statement of net
assets available for plan benefits as of March 31, 1996 and
the statement of changes in net assets available for plan
benefits for the year then ended are presented with fund
information. The statement of net assets available for plan
benefits as of March 31, 1995 and the statement of changes in
net assets available for plan benefits for the year ended
March 31, 1995 do not include fund information as such
investment options were not available at that time.
CHANGE IN ACCOUNTING PRINCIPLE
Prior to fiscal 1996, Tandy common stock was valued at its
closing market price on the New York Stock Exchange less
$0.25 per share. The Company discontinued this practice in
fiscal 1996 and commenced valuing Tandy Common Stock at its
closing market price. As a result, approximately $496,000 is
reflected in the Statement of Changes in net Assets Available
for Benefits with Fund Information for the year ended March
31, 1996 as the cumulative effect of change in accounting
principle.
INVESTMENT VALUATION AND INCOME RECOGNITION
The Plan's investments are stated at fair value. Shares of
registered investment companies are valued at quoted market
prices which represent the net asset value of shares held by
the Plan at year-end. Tandy common stock is valued at its
closing market price. Tandy preferred Stock is valued on a
monthly basis by an independent, third-party appraiser.
Participant notes receivable are valued at cost which
approximates fair value.
Purchases and sales of securities are recorded on a trade-
date basis. Dividends are recorded on the ex-dividend date.
Net appreciation or depreciation of investments as reported
in the statement of changes in net assets available for plan
benefits is calculated based on a revalued cost method basis
as required by ERISA.
CONTRIBUTIONS
Contributions from participants are accrued in the period in
which they are deducted in accordance with salary deferral
agreements, and as such, become obligations of the Company.
NOTES PAYABLE
The "1990 Notes" were issued under an indenture dated June
30, 1990 in denominations of $1,000 limited to $100,000,000
aggregate principal amount that have a final maturity of June
30, 2000 and are guaranteed by the Company. The 1990 Notes
bear interest at 9.34% per annum payable semiannually on each
December 30 and June 30 from December 30, 1990 through June
30, 2000.
On December 15, 1994, the Plan entered into an agreement with
an unrelated third party to refinance a portion of the 1990
Notes by borrowing $5,063,000 at an interest rate of 8.76% to
retire a portion of the $100,00,000 indebtedness. Under this
same agreement, the Plan borrowed an additional $4,303,000 at
an interest rate of 6.47% on December 28, 1995. These new
- 12 -
notes are also guaranteed by the Company and mature on
December 30, 2000 and December 30, 2001 respectively.
Maturities of the Notes are as follows:
For the Plan's Fiscal Year:
4/1/96 - 3/31/97 $ 9,800,000
4/1/97 - 3/31/98 $ 12,300,000
4/1/98 - 3/31/99 $ 12,425,000
4/1/99 - 3/31/00 $ 10,125,000
4/1/00 - 3/31/01 $ 9,543,000
Thereafter $ 4,303,000
The fair value of the Plan's total debt of $58,496,000
(including current portion) is approximately $62,612,094 at
March 31, 1996.
RECLASSIFICATION
Certain amounts in the prior year have been reclassified to
conform to classifications used in the year ended March 31,
1996 financial statements.
EXPENSES OF THE PLAN
At March 31, 1996, the trustee was responsible for both the
management and record keeping of the Plan's assets. Prior to
January 1, 1996, the Plan sponsor was responsible for the
record keeping of the Plan's assets. Administrative expenses
of the Plan are paid directly to the trustee by the Company
and thus are not a component of the changes in net assets
available for Plan benefits.
USE OF ESTIMATES
The preparation of financial statements in conformity with
generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could
differ from those estimates.
NOTE 3 - UNIT VALUE
Valuation
Quarter Ending Number of Units per Unit
______________ _______________ _________
March 31, 1995 71,703,789.8705 $1.4152771
June 30, 1995 69,024,311.4136 $1.5406053
September 30, 1995 68,305,731,4478 $1.8078888
Subsequent to September 30, 1995, the Plan no longer assigned
units to participants.
- 13 -
NOTE 4 - INVESTMENTS
The following is a summary description of the various
participant-directed investment options. Participants should
refer to the brochures and prospectuses for each of the
respective mutual funds and Company Common Stock for more
complete information including risks associated with
investment options.
TANDY CORPORATION COMMON STOCK - Funds are invested in common
stock of Tandy Corporation.
PUTNUM VOYAGER FUND - Funds are invested in shares of a
registered investment company that invests primarily in
common stocks of companies (a significant portion of which
may be invested in securities of smaller and newer issuers).
This fund may also purchase convertible bonds, convertible
preferred stocks, warrants, preferred stocks, debt securities
and may hold a portion of its assets in cash or money market
instruments. This fund may also invest up to 20% of its
assets in securities principally traded in foreign markets.
PUTNAM ASSET ALLOCATION FUND: GROWTH PORTFOLIO - Funds are
invested in shares of a registered investment company that
invests primarily in equity and fixed income securities with
a strategic allocation which is more heavily weighted towards
the equity class. The equity class portion of the fund may
invest in equity instruments of larger companies as well as
smaller and less well-known companies. The fixed income
portion of the fund will typically include a portfolio of
debt securities, including both U.S. and foreign government
obligations and corporate obligations. This portion of the
fund may also invest in money market instruments and lower-
rated fixed income securities. This fund may also invest up
to 40% of its assets in securities principally traded in
foreign markets.
PUTNAM ASSET ALLOCATION FUND: BALANCED PORTFOLIO - Funds are
invested in shares of a registered investment company that
invests primarily in equity and fixed income securities with
a strategic allocation which is slightly weighted towards the
equity class. The equity class portion of the fund may
invest in equity instruments of larger companies as well as
smaller and less well-known companies. The fixed income
portion of the fund will typically include a portfolio of
debt securities, including both U.S. and foreign government
obligations and corporate obligations. This portion of the
fund may also invest in money market instruments and lower-
rated fixed income securities. This fund may also invest up
to 40% of its assets in securities principally traded in
foreign markets.
PUTNAM ASSET ALLOCATION FUND: CONSERVATIVE PORTFOLIO - Funds
are invested in shares of a registered investment company
that invests primarily in equity and fixed income securities
with a strategic allocation which is more heavily weighted
towards the fixed income class. The equity class portion of
the fund may invest in equity instruments of larger companies
as well as smaller and less well-known companies. The fixed
income portion of the fund will typically include a portfolio
of debt securities, including both U.S. and foreign
government obligations and corporate obligations. This
portion of the fund may also invest in money market
instruments and lower-rated fixed income securities. This
fund may also invest up to 30% of its assets in securities
principally traded in foreign markets.
PUTNAM INCOME FUND - Funds are invested in shares of a
registered investment company that invests primarily in
fixed-income securities such as debt securities, including
both government and corporate obligations, preferred stocks,
dividend-paying common stocks and may hold a portion of its
assets in cash or money market instruments. This fund may
also invest up to 20% of its assets in securities principally
traded in foreign markets.
- 14 -
PUTNAM MONEY MARKET FUND - Funds are invested in shares of a
registered investment company that invests primarily in
short-term, high-quality money market instruments such as
bank certificates of deposit, bankers' acceptances, prime
commercial paper, corporate obligations, municipal
obligations, U.S. Government securities and repurchase
agreements. This fund may also invest without limit in U.S.
dollar denominated commercial paper of foreign issuers and in
bank certificates of deposit and bankers' acceptances payable
in U.S. dollars and issued by foreign banks or by foreign
branches of U.S. banks.
The following investments, at fair value, represented 5% or
more of net assets available for Plan benefits as of March
31, 1996 and 1995:
1996 1995
____ ____
Tandy Common Stock -
1,290,920 and 1,982,753 shares
at March 31, 1996 and 1995,
respectively $59,705,080 $94,180,768
Series B TESOP Convertible
Preferred Stock - Allocated
32,826.152 shares at March 31,
1996 34,894,200 -
Series B TESOP Convertible
Preferred Stock - Unallocated
52,766.805 shares at March 31,
1996 56,091,114 -
Putnam Voyager Fund
818,188 shares at March 31,
1996 13,246,465 -
Putnam AA - Balanced Fund -
736,495 shares at March 31,
1996 7,357,583 -
NOTE 5 - TAX STATUS OF THE PLAN
The Plan has received a determination letter from the
Internal Revenue Service. The Plan has subsequently been
restated and amended and management has requested a similar
determination letter from the Internal Revenue Service for
the Plan, as restated and amended. Management believes that
the Plan is qualified under Section 401(a) of the Internal
Revenue Code and applicable sections of ERISA and, therefore,
the trust is exempt from taxation under Section 501(a).
Accordingly, employee contributions, employer contributions,
and earnings of the Plan are not taxable to participants
until distributed. Management is unaware of violations in
the operation of the Plan from the terms of the Plan
documents, as amended. Management intends to maintain the
Plan's qualification under the Internal Revenue Code and
ERISA.
NOTE 6 - RELATED PARTY TRANSACTIONS
During 1996 and 1995, Tandy Common stock was sold to the
Company at its current market value on the transaction date
in the amount of $32,059,882 and $4,052,345 respectively.
NOTE 7 - ADMINISTRATION OF PLAN ASSETS
The Plan is administered by an Administrative Committee
comprising up to three persons appointed by the Company s
Board of Directors. The trust department of an independent
third party fiduciary trust company is the Plan's Trustee.
Certain administrative functions are performed by employees
of the Company with no compensation from the Plan.
- 15 -
Administrative expenses and Trustee fees are paid directly by
the Company.
NOTE 8 - RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for
Plan benefits per the financial statements to the Form 5500:
March 31,
1996
_________
Net assets available for Plan benefits
per the financial statements $132,240,733
Less: Benefit obligations currently
payable 48,694
___________
Net assets available
benefits per the Form 5500 $132,192,039
============
The following is a reconciliation of benefits paid to
participants per the financial statements to the Form 5500:
Year Ended
March 31, 1996
______________
Benefits paid to participants per the
financial statements $ 14,200,574
Add: Benefit obligations payable at end
of year 48,694
Benefits paid to participants per the
Form 5500 $ 14,249,268
============
Amounts currently payable to or for participants, dependents,
and beneficiaries are recorded on the Form 5500 per benefit
claims that have been processed and approved for payment
prior to March 31, 1996, but not yet paid as of that date.
- 16 -
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the
Registration Statement on Form S-8 of Tandy Corporation of
our report dated September 27, 1996 relating to the financial
statements of the Tandy Fund, which appears in the Current
Report on Form 11-K dated September 27, 1996.
PRICE WATERHOUSE LLP
Fort Worth, Texas
September 27, 1996
- 17 -
Tandy Corporation
Tandy Fund
Item 27A - Schedule of Assets Held for Investment Purposes
March 31, 1996
<CAPTIONS>
Identity of issue, Description of investment including
borrower, lessor or maturity date, rate of interest, Current
similar party collateral, par or maturity value Cost Value
-------------------- ----------------------------------- ----------- -----------
Tandy Corporation Common stock - 1,290,920 shares $46,335,059 $59,705,080
outstanding at March 31, 1996
Tandy Corporation Restricted Preferred Stock - 85,592,957 90,985,314
Allocated - 32,828.152 shares
outstanding 'at March 31, 1996
Unallocated - 52,788.805 shares
outstanding at March 31, 1996
Putnam Income Fund - 477,120.344 shares 3,421,924 3,306,444
outstanding at March 31, 1996
Putnam Voyager Fund - 818,188.084 shares 12,390,018 13,246,465
outstanding at March 31, 1996
Putnam Asset Allocation - Growth Portfolio - 4,763,328 5,029,799
478,117.832 shares outstanding at
March 31, 1996
Putnam Asset Allocation - Balanced Portfolio - 7,056,701 7,357,583
736,494.849 shares outstanding at
March 31, 1996
Putnam Asset Allocation - Conservative 2,155,585 2,189,556
Portfolio 234,930.872 shares
outstanding at March 31, 1996
Putnam Money Market Fund 1,566,681 1,566,681
Bank One Money Market Fund 19,802 19,802
Tandy Corporation Participant Loans receivable - 5,491,399 5,491,399
terms of 6 months - 5 years;
interest rates of 7% - 10%
------------- ------------
$168,793,454 $188,898,123
- 18 -
Tandy Corporation
Tandy Fund
Item 27D - Schedule of Reportable Transactions
Year Ended March 31, 1996
<CAPTIONS>
Expense Current value
Identity of party Description Purchase Selling Lease incurred with Cost of of asset on Net gain
involved of asset price price rental transaction asset transaction date or loss
---------------- ------------ -------- ------- ------ ------------- ---------- ---------------- ------
Putnam Voyager Fund 12,943,926 - - - 12,943,926 12,943,926 -
Putnam Asset Allocation 7,278,576 - - - 7,278,576 7,278,576 -
Balanced Fund
Bank One Money Market Fund 11,558,587 - - - 11,558,587 11,558,587 -
Bank One Money Market Fund - 13,983,642 - - 13,983,642 13,983,642 -
Tandy Corporation* Common stock - 34,172,143 - - 29,774,814 34,172,143 4,397,329
* - Party in interest
- 19 -
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: / s / M. Moad
-------------------------
M. Moad
Administrative Committee Member
by: / s / D. Johnson
--------------------------
D. Johnson
Administrative Committee Member
by: / s / D. Christopher
---------------------------
D. Christopher
Administrative Committee Member
Date:
-------------------
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